(ET)
Interim Finance Minister Piyush Goyal will hold a high-level meeting with the Power Minister RK Singh in New Delhi on Monday (June 11) on rescuing as many as 11 stressed assets. Goyal has called for this meeting after the Allahabad High Court ruled in favour of the Power Ministry and barred banks from initiating proceeding against Power producers as per a RBI Circular dated Feb 12. The HC had also directed the Finance Ministry to hold meetings with the Power Ministry on this matter.
The Power Minister RK Singh has publicly stated his reservations on this particular RBI circular as it had banned debt restructuring instruments like SDR (strategic debt restructuring) and S4A. Singh believes this circular will cause more harm to the power sector that according to a Parliamentary Standing Committee is straddled with debt, with nearly 34 projects with debt of over RS 1.75 lakh Cr being in danger of becoming NPAs.
