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RBI backs plan to have an ARC take over stressed power assets

Posted On : September 05, 2018

The Reserve Bank of India has seconded the Rural Electrification Corporation’s proposal to form an Asset Reconstruction Company (ARC) to take over stressed assets in the power sector.

The RBI, in its representations to a committee headed by the Secretary, Department of Financial Services, said that it is open to considering the suggestion by the REC that there could be a special ARC to take over banks’ stressed power assets.

“The proposal should be premised on a ‘level playing field’ agnostic of public/private ownership, and based on transparent price discovery,” the RBI said.

The committee has been tasked by the Allahabad High Court to find a resolution to power sector assets facing liquidation due to the RBI circular of February 12.

On the power sector’s request for a relaxation from the circular that mandates initiation of liquidation proceedings for a debt servicing default beyond 180 days, the RBI stood firm. “If RBI makes exceptions for any sector, there is likely to be a host of demands for exceptions, from other categories of stressed borrowers. These may even include legal challenges, as in the instant case,” it said. The RBI agreed that the problems in the power sector will spill over to the financial services sector and, therefore, need to be addressed immediately. “As has been amply demonstrated in the presentations made in the meeting, the problems are likely to take long to resolve and the financial sector cannot ignore the stress on its books, in the interim,” the RBI added.

The central bank noted that the February 12 circular further ensures that banks recognise stressed assets so that they may initiate a specific resolution for each case. It said that the circular has not withdrawn any restructuring options, as suggested by some. On the contrary, it has provided banks full freedom to devise restructuring schemes tailored to meet the specific needs of each case, without the adverse incentive for shoehorning every restructuring into the models provided by the regulator, for classification or provisioning benefits.

“Differentiated methodologies can be adopted by banks in crafting financial restructuring, with regard to specifics of each sector, banks’ recognition of financial stress on their books, and provisioning for this stress, needs to be sector-agnostic,” the RBI added.

DFS bats for relaxed norms

But, the Department of Financial Services has decided not to endorse the RBI’s suggestions. It has cited the key recommendations of the 37th report of the Parliamentary Standing Committee on Energy. The DFS has recommended that a high-level empowered committee look into the problems of Independent Power Producers with a view to bring them out of the non-performing asset or stressed asset quagmire.

This empowered committee will be tasked to deal with the cross sector concerns raised by various stakeholders and consider suggestions made by them. It will be constituted by the Ministry of Power. This would be in line with the recommendation given by the Parliamentary Standing Committee on Energy in its 37th report, the DFS led committee noted.

The DFS committee also suggested that an additional 180 days, beyond the timelines prescribed under the RBI’s circular dated February 12, 2018, be allowed to thermal power projects that have been commissioned and that have not been admitted or referred to the NCLT so far.

Vinodji,It is time we all put our pressure and STOP the SMART METERS am sending you HEALTH HAZARD reports here with Sir OK.Please read and assist me ASAP dear friends.If the same is accepted in DELHI this virus will spread all over the Nation Sir OK

1) HEALTH HAZARD

An expert in smart meter microwave transmission power has published new research showing that, contrary to the official government narrative, the radiation emitted from smart meters directly interferes with normal heart function.

by Ethan Huff, Guest writer, HumansAreFree.com

To come to this conclusion, Warren Woodward connected himself to an EKG monitor while lying near an Elster smart meter, which was connected to a high-frequency analyzer that measures microwave frequencies.

As it alternated between normal readings of 00.1 and 00.2, a monitor display showed that Woodward’s heart patterns were normal and symmetrical.

But during times when it spiked to 139.3 – this being the time when the smart meter initiated data transmissions – Woodward’s EKG pattern changed dramatically in response.

In other words, when the smart meter was not sending high amounts of power, Woodward’s EKG readings were normal and natural. But when it kicked into higher output mode, the changes were “massive.”

Brief periods of alteration to normal heart rhythm aren’t much to worry about. But when these irregularities are ongoing, the heart can end up working too hard, resulting in fatigued cardiac function.

Dr. Gilberto Leon, a holistic medicine doctor from Chandler, Arizona, warns about this. He says that changes to the heart caused by smart meters are anything but symptomless or “silent,” and that major damage can take place without people even realizing it.

The constant bombardment of microwave radiation from smart meters represents “an unnatural sequence of events that we’re not programmed to respond to,” he says.

Long-term exposure to smart meters, he says, can be extremely damaging to normal myocardial function.

Many of the smart meters attached to people’s homes are much stronger than the one that Woodward tested

Keep in mind that the Elster smart meter that Woodward tested only transmits at about one-quarter of a watt. Other brands like Landis and Gyr Focus, for instance, transmit closer to one watt – or nearly three times the output of the Elster brand.

This suggests that these other smart meters are perhaps even more damaging to heart function than the Elster – with potentially far worse health consequences, especially in people with pre-existing health conditions.

Woodward is also a generally healthy man who has no pre-existing heart conditions. The symptoms he suffered, in other words, were entirely the result of exposure to the Elster smart meter.

Many smart meters charge more than the electricity actually used

Another study out of the Amsterdam University of Applied Sciences has identified some other serious problems with smart meters – mainly that many of them overcharge customers.

More than half of the smart meters tested as part of an experiment were found to be riddled with computational and energy use errors.

In some cases, false readings clocked in as high as 582 percent beyond actual usage.

Right behind this were meters that had false readings of 581, 566, and 475 percent higher than the amount of energy that was actually used.

In theory, such figures could lead to some customers being charged as much as six times more than they should be for electricity usage – meaning big bucks for the utility companies pushing these things.

There are also concerns about smart meter safety, as there have been reports of the devices suddenly exploding and catching on fire.

When smart meters are improperly installed, they can cause what’s known as “arcing,” which can lead to their spontaneous combustion accompanied by an electrical fire.

This is why groups like the American Academy of Environmental Medicine are calling on a total recall of all smart meters until their true effects have been properly studied.

The public needs to know the risks before smart meters become so ubiquitous that turning back is no longer and option.

2) INSTALLATION in DELHI:

The link will reveal all dear friends.Time to act before the Oligopoly sets in dear OK.It is critical now before it is forced down the neck of all 125Cr Indians we must stop it dead on the tracks bhaiji OK

RBI backs plan to have an ARC take over stressed power assets

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