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Stressed Power Companies may get relieved on extension provided to companiest to trigger Bankruptck Proceedings

<p><span style="font-size:9.0pt">A recent RBI circular, stringently stated that bankruptcy proceedings for stressed power plants should kick in after 180 days of default. RBI has initiated the circular in purview of liquidation of 30,000 MW of assets, which may or have turned out assets to be NPA.</span></p> <p><span style="font-size:9.0pt">The Private firms are struggling to meet 180 days deadline, they have urged government to extend the deadline to 360 days and the matter is in Allahabad courts. Power Producers state that assets have turned to be NPA due to factors not in control of the company like delay in land acquisition, Fuel supply bottlenecks, long-term PPA. Extension provided would ease the producers to instantiate options not to trigger liquidation of assets.</span></p>