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Government may consult RBI under Section 7 as per Allahabad HC order

Updated : August 27, 2018 07:21 PM IST

The government may consult the Reserve Bank of India (RBI) under Section 7 of the RBI Act as per the Allahabad High Court’s order.

The high court on Monday refused to grant interim relief to power companies, which had filed pleas against the Reserve Bank of India (RBI) February 12 circular.

It has also asked the centre to decide and take action under section 7 of the RBI Act within 15 days on power companies.

Giving an additional 180 days would have helped the commissioned power projects which have not yet reached that stressed region where the National Company Law Tribunal (NCLT) reference has become mandatory.

It has also a larger impact on the power sector, on the economy and there are lots of concerns that the government including the finance ministry had raised on this matter.

Also, starting on August 27, there are 15 more days available with the public sector banks to go ahead with some kind of resolution. The indication is very clear that 7-8 such commissioned thermal power projects are under that stage.
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