Banks may refer GMR, Prayagraj, SKS, 8 other power cos to NCLT

Failing to find resolutions for stressed power sector companies, lenders have decided to refer 11 companies, including Prayagraj Power Generation, GMR Chhattisgarh Energy and Jaiprakash Power Venture, to the National Company Law Tribunal (NCLT), banking sources said.

The other companies are SKS Ispat Power, Meenakshi Energy, Athena Chhattisgarh Power Jhabua Power, KSK Mahanandi, Coastal Energen and Jindal India Thermal Power, among others.

The Reserve Bank of India (RBI) in its February 12 circular had asked banks to identify projects over Rs 2,000 crore with even a day's default as stressed assets, and conclude resolution proceedings in 180 days. The circular came into effect on March 1 and the 180-day deadline ended on August 27.

"There are in total 11 stressed power assets that banks have decided to take to NCLT," a public sector bank official said.

After crossing the August 27 deadline, banks have 15 days time to refer all stressed accounts to NCLT.

"RBI has advised to take all these stressed accounts immediately to refer to NCLT and not wait for 15 days," said another banker.

Post August 27 deadline, nearly 70 large accounts mainly from power, EPC and telecom, with a total exposure of Rs 3.8 trillion, are expected to be refereed to NCLT for resolution.

There are 34 stressed power accounts, with a combined value of Rs 1.74 trillion.