The Reserve Bank has turned down the Power Ministry's request to give certain concessions for setting up of an Asset Reconstruction Company (ARC) for warehousing stressed assets to prevent distress sale of these plants, a senior official said Thursday.
"An upfront valuation is required for taking assets into ARC. We have sought exemption from that. The ARC is required to make 15 per cent upfront payment to lenders. We were asking for exemption from that. These type of concession are not in the scheme of RBI," Power Secretary A K Bhalla told reporters here.
About setting up of the ARC by state-run lender Rural Electrification Corporation (REC) with other lenders to power projects, Bhalla said, "The REC and lenders together will set up this ARC."
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