As much as Rs 1.4 lakh crore loans of 34 power companies had become non-performing assets. The sector is likely to benefit the most from the Supreme Court action on Tuesday quashing the RBI circular on bad loans. “The circular had outlined impractical conditionalities and timelines for resolution and also had an inbuilt bias against the existing owners of stressed projects,” the Association of Power Producers (APP) said. Ashok Khurana, general-secretary of the APP, said “with the threat of IBC proceedings mitigated, power companies and lenders will have some breathing space as well as flexibility to restructure debts in a manner which ensures continuity and value maximisation for lenders as well as power companies. “This provides the much needed relief to power companies which had been taken to the NCLT under the RBI circular, including RattanIndia, GMR, GVK, ILFS and Coastal Energen”.

Source: The Telegraph April 02, 2019 19:30 UTC