CBOU Central Bank of india Officers' union Telangana and Andhra Pradesh

Banks' exposure to hydel project may be referred to debt recast cell

The Rs 2,000-crore exposure of banks to the 400 MW Maheshwar Hydel Power Project might be referred to the corporate debt restructuring (CDR) cell, said bankers who met Financial Services Secretary Rajiv Takru on Wednesday in Mumbai.

Soundara Kumar, Deputy Managing Director, State Bank of India, said: "No final solution (was found). Ultimately, we may have to go to CDR because I think it is a project which we should try and save. Of the ten turbines, three have been installed and are ready to work."

SBI has an exposure of Rs 200 crore to the project. Other lenders include Bank of Baroda, Dena Bank, Power Finance Corporation and other financial institutions. This project is a non-performing asset for most of the banks, Kumar said. Read more

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