Allahabad High court adjourns hearing on RBI circular till August 9

NEW DELHI: The Allahabad High Court has adjourned the hearing on RBI circular till August 9 giving the banking regulator time to make its submissions.

The government on Thursday informed the high court about formation of a high level empowered committee led by cabinet secretary P K Sinha and representation from the ministries of railways, finance, power, coal and banks having major exposure to the power sector to revive stressed thermal power projects.

The Committee would look into various issues with a view to resolve them and maximise the efficiency of investment including changes required to be made in the fuel allocation policy and regulatory framework.


The government has said that the committee will also look into mechanisms to facilitate sale of power, ensure timely payments, payment security mechanism, changes required in the provisioning norms/Insolvency and Bankruptcy Code (IBC), Asset Restructuring Company regulations and other proposals for revival of stressed assets so as to avoid such investments becoming NPA.

The high court had on May 31 temporarily stayed the RBI circular on companies other than willful defaulters and asked finance secretary to hold a meeting on resolutions. The court had earlier clubbed three separate petitions filed by the Association of Power Producers (APP), Independent Power Producers Association of India (IPPAI) and Jaypee Associates against the RBI circular.