Source: The Economic Times, Aug 07, 2018
A Parliamentary panel today recommended new framework for resolution of stressed assets in power sector saying the Reserve Bank’s framework, brought in February, “addresses only financial issues, ignoring the whole range of vital issues of electricity sector”.
The RBI’s revised framework for resolution of stressed assets has laid down strict timelines after which insolvency proceedings are initiated. The framework terms even a one-day delay in debt servicing as default. The banks are required to ensure resolution plans within 180 days after default. It covers debt exposure of Rs 2,000 crore or more.