Government Will Talk to RBI on Relief in Power Sector

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Allahabad High Court, the government will deliberately be asking for a 180-day delay from the Reserve Bank for the power that can be run, but for the crisis-ridden power plants. A large government authorized has given this info. He said that in this case, the departments will have to act together. The decision will be taken on Friday. After that, the government will talk to the Reserve Bank about this.

The law under which this work can be done has not been used so far. Section 7 of the Reserve Bank of India Act, 1934 states that after the communication with the RBI governor, the Government may from time to time direct him in the public interest. The Allahabad High Court on Monday declined to give short-term liberation to private power firms on the RBI circular on February 12.

Finance ministry is said that although commissioned power plants of 40 GW have defaulted, they should be preserved in a different way. In the Circular of 12th February, the Reserve Bank had said that the defaulters would be taken to Insolvency Proceedings within 180 days to the National Company Law Tribunal (NCLT). This period ended on 27th August. Government and power companies have asked for a 180-day deadline to resolve the case of stressed power possessions.

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An official of the Finance Ministry said on condition of anonymity, “We have suggested giving more 180 days to the banks so that they can observe these resources and take stock of their money flow. With this, fall in the value of power plants can be prevented and banks will not have to lose their given loan. The official said that a parliamentary committee on energy has also made the same suggestion.

Senior bank officials said that agreement for such 8 projects has been agreed. The managing director of a government bank said, “We can demand a moratorium for a few days from the Reserve Bank because banks’ board will have to get an endorsement on a tenacity plan. After that, it will take some days to implement it. For this, the consent of 90% of lenders will be necessary. A total of 60 companies have a debt of 1.2 lakh crore in the power sector.