Nearly 80 large borrowers, with at least Rs 2000 crore of outstanding loans each, are likely to be impacted by the Reserve Bank of India's February 12 circular on non-performing loans unless they implement a resolution plan before the August 27 deadline, sources told CNBC-TV18.

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According to the central bank's revised framework for the resolution of stressed assets, now popularly referred to as the February 12 circular, banks were given 180 days to resolve defaulting accounts of over Rs 2,000 crore.

The new rule mandates lenders to initiate insolvency resolution under the Bankruptcy Code, if a resolution plan is not approved even at the end of the 180 days of first default.

For the corporates, who were delayed in their repayment to lenders when the circular was issued, the 180-day deadline started on March 1 and will come to an end on August 27.

According to multiple sources close to the development, about Rs 4 lakh crore of outstanding loans could be sent to the bankruptcy court due to the RBI circular, with a bulk of them coming from the power sector.

All the 34 stressed thermal-power projects reviewed by the power ministry are likely to be impacted, unless Allahabad High Court rules to keep them out of the February 12 circular, or extends the 180-day deadline.

State Bank of India (SBI)-led lenders have also identified seven of these 34 power assets for resolution before August 27, but none have been resolved successfully so far, despite banks working over-time to meet the deadline.

According to the sources, the top power projects that could be taken to the National Company Law Tribunal (NCLT) include Lalitpur Power Generation Company, KSK Mahanadi Power Co, Jaiprakash Power Venture Ltd, Prayagraj Power Generation Co, Lanco Amarkantak Power, Rattan India Power (Amravati), Ratnagiri Gas & Power, Coastal Energen, Jindal India Thermal Power Odisha and Essar Power Mahan MP among others.

In the non-power list, companies likely to be hurt includes Reliance Communications, Punj Lloyd, Gammon India, Reliance Defence & Engineering, Bajaj Hindusthan, Pratibha Industries, Patel Engineering, Bombay Rayon, GTL Infrastructure, Chennai Network Infra, Gitanjali Gems and McNally Bharat Engineering Co, among others.

Patel Engineering, in its emailed response said, "The Company hereby clarifies/confirms that S4A has been implemented in November, 2017 and the Company is also in compliant with RBI circular dated February 12, 2018. As on date there is no overdue with any banks and hence there is no Resolution Plan pending."

Bajaj Group, in its emailed statement on Lalitpur Power Generation Company said, "We wish to clarify that the Lalitpur Power account is Standard and Regular with all banks as of today with no overdue whatsoever."

Click here to read the finance ministry report on Power Sector NPAs and their current status.

SBI, IDBI Bank, Punjab National Bank (PNB), Axis Bank and ICICI Bank are among the major lenders which are likely to be impacted. SBI & IDBI Bank each have over 40 accounts, ICICI Bank has about 32 accounts, PNB about 35, and Axis Bank over 23 such accounts that will be impacted by the RBI circular, as per sources.

Among the other lenders, Bank of Baroda will likely to have nearly 20 accounts, Union Bank of India with over 18 accounts while Bank of India has 8 such accounts that may be taken to the NCLT.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

First Published:Aug 24, 2018 12:21 PM IST