Power sector NPAs: Govt, RBI's different stand in HC could create confusion

The government stand in the court came despite RBI representatives repeatedly turning down the request in their meetings with the Department of Financial Services and the Ministry of Power

Insolvency concerns might have caused further distress in a large number of infrastructure companies but the power sector is being dealt with by the government differently. The financial stress in the sector has, in fact, brought to fore a rare instance of a regulator and the government taking a different stand on an issue of utmost industry importance.

For the steel sector, however, the Union government never took any visible stand opposing the June 13, 2017 notification of the Reserve Bank of India (RBI), despite protectionist measures by the Centre that had led to improved market conditions for five steel companies