SBI's flagship scheme for resolution of stressed power assets is in a soup

Lenders this paper spoke to said there was a concern regarding companies not cash-rich bidding for stressed assets

The reluctance of lenders to approve resolution plans, the lack of a consensus over valuing stressed assets, and the paucity of cash-rich buyers are likely to push close to 15 power assets towards insolvency.

Samadhan — the flagship scheme by State Bank of India (SBI) for resolving stressed assets outside the National Company Law Tribunal (NCLT) — is going into a maze. Some lenders, like state-owned Power Finance Corporation (PFC), say most assets should be sent to the NCLT, said official sources.

Sustainable debt is a contentious issue with asset valuation being stuck because lenders disagree over a thumb rule. It was