Allahabad High Court order fails to resolve all issues of power sector

A high-level committee under Cabinet Secretary P K Sinha will also come up with a report on power sector woes within two months

The Allahabad High Court (HC) order has not cleared the air for stressed power assets that have insolvency looming over them, leaving the door open for more litigation and a complex maze of likely directions and policy initiatives that the Centre and the Reserve Bank of India (RBI) can take.

While lenders have 15 days from August 27 to file for insolvency under the RBI’s February 12 notification which was challenged in court, the Allahabad HC has asked the government to consider initiation of the consultative process contemplated under Section 7 of the RBI Act, and conclude the same within