Why the Insolvency and Bankruptcy Code should remain sector-agnostic

The ministry of finance held a stakeholder meeting on June 21 to discuss the issue of how best to handle the stress in the power sector and whether the Reserve Bank of India (RBI) should reverse its February notification that would have pushed a number of power generators into the insolvency route, post a Allahabad High Court order to that effect. In effect, the meeting had to take a call on whether a special dispensation for power companies could be created outside the RBI’s notification that set a deadline for lenders to resolve debt issues.

The RBI certainly was in