Govt hopes RBI will tread middle path on stressed power assets issue

Before September 11, the government has to take a decision in consultation with the RBI

In the backdrop of the Allahabad High Court’s decision to not grant relief to privately-owned stressed power projects from the Reserve Bank of India’s (RBI) February 12 order, the government and the central bank are trying to find a solution before the projects go for insolvency proceedings. 

A high-level empowered committee headed by Cabinet Secretary PK Sinha will meet on Friday to take a call on issues related to the stressed power assets that the government plans to take up with the central bank.

Moreover, the finance ministry and the RBI are keeping informal channels of communication open and discussing