New Delhi, May 8 (IANS) The Union Power Ministry’s meeting with Reserve Bank of India (RBI) scheduled for Tuesday, on the revised RBI norms on banks’ non-performing assets (NPAs), or bad loans, which have caused serious concern in the sector, has been postponed, according to Power Minister R.K Singh.
As per the RBI’s revised framework on NPAs issued in February, banks are required to classify even a day’s delay in paying loan instalments as a default. Producers say this is too stringent for power companies, pointing to how they pay for coal in advance but discoms take 90-150 days to pay for the power.
The ministry has approached the RBI seeking relaxation on the central bank’s NPA norms.
“It (meeting) has been postponed and will take place some other day,” Singh told reporters on the sidelines of a conference organised by state-run power generator NTPC.
At a meeting with the government in March, the Association of Power Producers (APP) had represented that RBI make some relaxation in its norms on NPAs, failing which up to 70,000 MW of power projects will go under bankruptcy proceedings.
It had apprised the Minister of the serious problems being faced by the industry in the way of coal shortage and the huge bill outstandings due from state distribution companies (discoms).
A Parliamentary panel report has revealed that there are as many as 34 stressed electricity projects with a total capacity of over 40,000 MW.