The Reserve Bank has been invited to attend the meeting of the empowered committee for resolution of stressed power assets to be held on August 31, Union minister R K Singh said today.
The government last month set up the committee chaired by Cabinet Secretary with representatives from ministries of railways, finance, power, and coal, and lenders having major exposure to the power sector.
On RBI's role in resolution process, the Union power minister said, "RBI has been called to attend this meeting on August 31."
"The committee will deliberate on it (NPA resolution). I don't see stress cascading or anything like that. Good thing is that demand is increasing. So there is more space to generate extra (electricity)."
"So they will decide. There are some mechanisms which have been moved. One is Samadhan and other is Parivartan. So we will see how it works out."
A senior official present on the occasion said, "For resolution of the stressed assets without initiating bankruptcy proceeding, the lenders should come on board."
Disclaimer: No Business Standard Journalist was involved in creation of this content