SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

RBI backs REC’s proposal to form ARC for power sector stressed assets

14 Aug 2018 Evaluate

The Reserve Bank of India (RBI) has backed the proposal of state-owned Rural Electrification Corporation (REC) to set up an Asset Reconstruction Company (ARC) to take over stressed assets in the power sector. The power sector is grappling with non-performing assets (NPAs) of about Rs 1.74 lakh crore. 

The apex bank had said that it is open to plan of REC setting up an ARC. It noted that the proposal should be premised on a ‘level playing field’ agnostic of public/private ownership, and based on transparent price discovery. A panel was formed in compliance of the order of the Allahabad High Court. The High Court on May 31 stayed the February 12 RBI circular on companies other than willful defaulters and directed the finance ministry to hold a meeting of all stakeholders on resolutions.

Acting on the direction, a meeting chaired by the financial services secretary with all stakeholders was convened on June 22. On the basis of meeting, a report was prepared and sent to the power ministry for further action as per the court order. Besides, the report suggested setting up of a high level empowered committee (HLEC). In line with the report, the government constituted a high-level empowered panel under the cabinet secretary to resolve issues plaguing the power sector and revive stressed assets.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: