The government is likely to recommend bankruptcy proceedings for stressed power plants to be carried out after 360 days of default, giving relief to banks and companies struggling to comply with the 180-day deadline, The Economic Times reported.
The 180-day deadline was set by the Reserve Bank of India in its controversial February 12 circular.
The recommendation is expected to be presented to the Allahabad High Court. Apart from this, separate recommendations are likely to be made for power projects depending on their operational status and resolution plans, the report said.
The power ministry and private power firms have demanded that stressed power projects should not be categorised as stressed in 90 days of default, while the deadline of 180 days to resolve a bad loan, after which liquidation process is immediately triggered, be extended to 270 days, according to the report.
Power producers say that many projects are stressed for reasons not in their control.
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