There has been no proposal made to the Reserve Bank of India for granting the status of Statutory Liquidity Ratio to bonds that may be issued as part of the debt restructuring of state electricity boards, said deputy governor HR Khan.
“There is no proposal as of now. SLR status is given only to bonds issued under approved market borrowing,” Khan told reporters on the sidelines of the capital markets conference by Ficci on Friday.
As part of the restructuring plan, the government has proposed that 50% of SEB loans will be converted into bonds and the rest will have to be recast by banks by giving a moratorium period. It is unclear if the bonds will carry a guarantee of the state to which the distribution company belongs.