The government may approach the Reserve Bank of India to extend the deadline for management switchover of stressed power plants in the case of projects for which lenders have identified new promoters, an official said.As per a Reserve Bank circular issued on February 12, the deadline for finalising the resolution proceedings for defaulting power plants to escape being referred to insolvency court is August 27
.Now, lenders are close to finalising the fate of 8-10 stressed power assets, and in case they fail to complete all formalities for management switchover by the deadline, the government may urge the central bank to give them more time, a senior government official said on condition of anonymity.“In many cases, the lenders are close to finalising the way out,” the official said.
“Competitive bids have been received, opened, and the banks have discussed many issues. Now they will have to arrive at a decision, which definitely can be done in 10 days. Of course, we feel when the decision is arrived at, then we can pursue for seeking time for the last mile, if there are any formalities left. The banks need to decide first.”In case lenders have not finalised a resolution, the projects will have to go to insolvency court.ET had on July 27 reported that banks are set to finalise deals for about a dozen stressed power projects with more than 13,000-mw capacity within 10 days even if they have to take steep haircut
.Negotiations with bidders are on for at least six power projects, including Avantha Power (Jhabua) and KSK Mahanadi where bidders are being given shorter deadlines to improve offers, people familiar with the developments said.Adani Power, Vedanta Plc, JSW Energy, Edelweiss, Bank of America, Merrill Lynch, Resurgent Power, Lone Star-IL&FS and JM
Financial are among bidders in the fray for one or more projects.The 1,440-mw RKM Powergen project is so far the only project in which the debt will be restructured with existing promoters and the resolution plan is likely to be finalised soon.
Lenders have decided to drag at least four projects, including 1,200-mw Lanco Anpara in Uttar Pradesh and 1200-mw Jindal India Thermal plant, to National Company Law Tribunal (NCLT).Banks had earlier signed inter creditor agreement to reach quick resolution for stressed plants. –
Source : Financial Express