The Ministry of Power (MoP) on November 01, 2023, issued the Advisory to all states/GENCOs regarding participation in CIRP of NCLT for taking over Stressed Thermal Power Assets.
The following has been stated namely: -
• State-owned Generating Companies (GENCOs) are requested to participate in the CIRP of stressed power assets.
• The “Clean Slate” Principle embedded in IBC 2016 would safeguard the GENCOS from any unexpected liability thereon on account of issues/ claims of the period, earlier to admission under IBC 2016 under the NCLT.
• The approved resolution plan is binding on all the stakeholders involved including statutory claimants. Only the claims included in the Resolution Plan, approved by the Committee of Creditors ("COC") and the Adjudicating Authority (ie. NCLT) would be entertained and all the other creditors' claims would stand extinguished.
• Participation of GENCOS would ensure issues such as inadequate capital investment, shortage/ disruption in coal supply, etc. are addressed.
• This would help States meet their increasing power demand economically with significant control over such power generated.
• State-owned Generating Companies (GENCOs) may therefore be advised to acquire the stressed power assets through IBC under the NCLT route and contribute to the overall generation capacity of the nation.
• The list of the major projects, that are ready for takeover, is enclosed as Annexure.
[Notification No. B-5/2015-IPC(Pt.v)]
