Power NPAs get Allahabad HC relief for a month

The Reserve Bank of India mandated banks to classify even a day's delay in debt servicing as default

The Allahabad High Court, hearing a petition by the Independent Power Producers Association of India (IPPAI) against insolvency proceedings, has directed the finance ministry to conduct a meeting with stakeholders and work out a possible solution in a month. 

Insolvency proceedings should be avoided unless the company was a wilful defaulter, till a meeting was conducted by the finance ministry, the court said.

“As of now, commissioned plants worth thousands of megawatts are under severe financial stress and on the brink of becoming non-performing assets. This is due to fuel shortage, sub-optimal loading and untied capacities. These projects were commissioned