Pariwartan: A parking lot for stressed power assets that have no takers

Coal supply is sketchy, power demand is tepid and no bank is ready to infuse any fresh lending in the conventional power sector

Starting this week, as many as 34 stressed power projects, with a cumulative capacity of 40,000 Mw, were expected to line up at the insolvency courts. The 180-day deadline set under the February 12 circular of the Reserve Bank of India (RBI) is over. But a Supreme Court directive on Tuesday halted the insolvency process for the sector until November, thereby making the situation more precarious.

 
According to the circular, under the Insolvency and Bankruptcy Code (IBC), even a one-day payment failure was to be regarded as a default, against which insolvency proceedings were to be initiated. The RBI had