Stressed loans: SC cases may set stage for power sector insolvency

In the February 12 circular, issued to all banks and financial institutions, RBI withdrew all earlier debt restructuring schemes

Clarity on whether the Reserve Bank of India (RBI) can make an exception for power sector from the applicability of its February 12 notification is dependent on a Supreme Court hearing in another case, involving almost a dozen non-power industry which is scheduled to be heard in the apex court on August 7. 

“RBI is of the view that the power sector case should be decided along with the other in which around 11 other industry have raised objections to the notification,” said a person close to the development.

Since those matters are pending in the Supreme Court and are