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Banks to refer four stressed power projects to NCLT by August 27

Updated : July 30, 2018 08:39 PM IST

Banks are set to refer four stressed power projects to the National Company Law Tribunal (NCLT) and several others will be put for sale to prospective suitors by August 27 deadline, a top executive at Union Bank of India told CNBC-TV18.

Rajkiran Rai, chief executive officer and managing director of Union Bank of India, said they have buyers in place for all the four identified power projects that they have decided to refer to the NCLT.

The banks have sought a minimum 20 percent guarantee from the prospective bidders, Rai told CNBC-TV18.

Several bankers, at a meeting called by State Bank of India in May, discussed creating a structure similar to an asset management company to which they could transfer stressed power assets which could then be turned around. The talks came after the Reserve Bank of India set an August 27 deadline for the resolution of stressed assets.

"We discussed account-wise power projects in the recently held meeting with SBI," said Rai adding that he was confident that some power accounts can be settled outside the NCLT.

"Expect some resolutions to definitely happen before August 27 deadline," said Rai.
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