Stressed infrastructure accounts see little hope in new RBI norms

The resolution effort may find itself in a conundrum where most road companies may not need it, and power companies may not benefit, say experts

The Reserve Bank of India’s (RBI’s) circular for one-time restructuring of standard accounts affected because of Covid-19 offers a pragmatic solution, but it might do little for infrastructure sectors, which were stressed even before the pandemic arrived.

The measures might find few takers in the sectors as most road companies might not need it, and power companies might not benefit, say experts. A K Khurana, director general, Association of Power Producers, a representative body of private power generators, said, “The committee has laid sector-specific financial ratios, which bankers need to adhere to. It may help to account for inter-sectoral differentiation, but