NPA uncertainty: Supreme Court decision will muddy the waters further

SC has stayed further moves against the power sector by its creditors, transferred all pleas in various courts to itself and directed RBI to maintain the status quo until the plea is heard in November

On Tuesday, the Supreme Court issued an order staying further moves against the distressed power sector by its creditors. It also transferred all the pleas in various courts to itself and directed the Reserve Bank of India (RBI) to maintain the status quo until the plea is heard in November. The relieved Association of Power Producers claims it would allow the companies to come up with resolution plans for about 13 GW of stressed generation assets. In effect, this stays the RBI’s February 12 circular marking loans with a day’s payment delay as subject to procedures under the Insolvency and