Back on the Chopping Block
Anilesh S Mahajan September 5, 2018
Thirty-four stressed power sector accounts that defaulted on Rs1.5 lakh crore worth of dues are now before the National Company Law Tribunal - yet again. They were given a 180-day deadline to settle their debts but failed.
Lender banks are expected to take a haircut and write-off these 'bad loans' - 18 of which had already been referred to the NCLT earlier. The remaining, including Ind-Barath Energy (Utkal), Lanco Anpara, Jindal India Thermal Power and others will be at the bankruptcy tribunal within two weeks.
RBI has refused any relief on the deadline to avoid setting a precedent even as SBI - the lead lender to nearly eight power plants is hoping for resolution, and has been given a fortnight to appoint a legal team for the NCLT proceedings.
Anilesh S. Mahajan