Central government constitutes high-level committee for stressed asset resolution

The central government has constituted a high-level empowered committee to be headed by the cabinet secretary to look into the issue of stressed assets in the power sector. The committee comprises representatives from the Ministry of Railways, Ministry of Finance (MoF), Ministry of Power, Ministry of Coal and the lenders having major exposure to the power sector. The purpose of the committee will be to resolve various issues while maximising the efficiency of investments including changes required to be made in the fuel allocation policy and regulatory framework. It will also improvise on mechanisms to facilitate the sale of power, and ensure timely payments and necessary changes in  the Insolvency and Bankruptcy Code and the Asset Restructuring Company Regulations 2016 in order to avoid the investments from becoming NPAs.