Power Minister R K Singh told CNBC TV18 that the RBI resolution for bad loans is “impractical and demanded changes”. His statement comes at a time when close to 80,000 Mw of privately owned thermal power plants are on the verge of insolvency.
The RBI has mandated that even a day of default in payment would land the company/project in the NCLT.
Most of the stressed assets are either facing coal supply crunch or don’t have any power supply agreement or both. Earlier, the Association of Power Producers had urged the ministry to plead for extension of the resolution and give at least one year for these stressed units to find the resolution outside the IBC route.