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RBI’s norms will deepen power sector crisis: Parliamentary panel
New Delhi, Aug 7 (IANS) A Parliamentary panel on Tuesday said RBI’s new guidelines on default will worsen the crisis in the power sector and suggested changes.
“The new guidelines of the RBI will only deepen the crisis of the electricity sector as its leitmotif is distinct, peculiar and sector specific without any generic underpinning with other sectors of the economy,” the Standing Committee on Energy said in its report.
The high rate of non-performing assets (NPA) in Indian banks is sector specific with major concentration in sectors like infrastructure, power, iron, steel and textile. Total NPA in power sector has exceeded Rs 1.8 lakh crore.
The panel noted that the definition of default has been revised and the same has been aligned to the definition of default given in Insolvency and Bankruptcy Code (IBC).
The committee, headed by Lok Sabha MP Kambhampati Haribabu, said the reasons of stress in different sectors are separate and varying, and thus needs a closer look.
For the power sector, factors like coal linkage, delay in implementation, non-availability of fuel, delay in land/environment clearances and need of extra funds have aggravated the problem and weak financial health of distribution companies have impacted their liquidity position, it said.
“The committee postulates that the specifics and realities of the sector should be taken into account for appropriate modulation of the RBI Guidelines,” the report said.
The committee said it has learnt that finding an optimal solution for a stressed asset exactly in 180 days is almost impossible and that lending institutions have stated that 12 months are needed for a smooth and efficient resolution.
“The Committee feels that going by the prescribed timelines, every stressed project of the power sector will ultimately land in National Company Law Tribunal (NCLT).
About 66 GW of conventional energy is under various degrees of financial stress which include 54,805 MW of coal based power (44 assets), 6,831 MW of gas based power (nine assets) and 4,571 MW of hydro power (13 assets), it added.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.