Government to Review Supreme Court's Directive on Bhushan Power and Steel Liquidation

The government is reassessing the Supreme Court ruling for the liquidation of Bhushan Power and Steel. The Department of Financial Services will soon decide a course of action. Meanwhile, the IDBI Bank stake sale is expected to conclude within the year.

The government is closely examining the Supreme Court's ruling on the liquidation of Bhushan Power and Steel, as announced by Department of Financial Services Secretary M Nagaraju. He stated that discussions with lenders have been conducted, and the government is in the process of reaching a conclusive approach.

Nagaraju highlighted the need for a thorough analysis of the court's order and will seek further input from senior government advocates. The Supreme Court's decision came after JSW Steel's extended bid for BPSL was rejected, resulting in a liquidity push that is anticipated to lead to severe financial repercussions for lenders.

State Bank of India and Punjab National Bank stand as the principal lenders affected by this ruling, with potential appeals on the horizon. Separately, Nagaraju confirmed the forthcoming completion of the IDBI Bank stake sale by year-end, following his commentary during the RMBS Development Company's inaugural securitization transaction listing.

(With inputs from agencies.)