Fresh setback for NARCL as two power NBFCs PFC and REC back out

Bad bank unlikely to take up any power assets in the first list

The National Asset Restructuring Company (NARCL), which is still taking shape after almost a year since it was announced, has faced another setback. Sources said the two non-banking financial companies (NBFCs) — Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) — would not invest in NARCL to be shareholders.

NARCL, or bad bank, was announced in the Union Budget last year to take over non-performing assets (NPAs) and facilitate their resolution. In the first phase of its operations, NARCL is slated to take up infrastructure assets with more than 85 per cent provisioning.

Senior officials said the Ministry of