New Delhi, With the action under the Insolvency and Bankruptcy Code (IBC), the government is expected to recover the debt immobilized with more than Rs 1.80 lakh crore in the current financial year. An official of the Finance Ministry said that under the IBC, some major accounts are being disposed of and some others have to be disposed off.
Referring to some disposal cases like Essar Steel and Bhushan Power and Steel, the official said that from the rate of success we are getting, we hope that the debt burden of more than Rs 1.80 lakh crore in the current financial year and other methods. Which is more than our target.
Recovery from 12 cases will be Rs 1 lakh crore
Banks, which have sent 12 non-executed assets (NPA) cases to the bankruptcy process, are expected to recover more than Rs 1 lakh crore from them. The banks have recovered Rs 36,551 crore in the first quarter of 2018-19.
The government is excited
In 2017-18 banks had recovered a total of Rs 74,562 crore. Satisfied with the progress of IBC, Finance Minister Arun Jaitley had said that now people have understood widely that the rules of the game have changed in India. Now the bank will not follow you, you have to run behind them. Because of this the recovery has increased.
He said that the recovery has not only increased due to the settlement in the National Company Law Tribunal (NCLT), but due to this fear it has also increased due to fear that if they cross the red line, they can be punished under the IBC.
Essar Steel hopes to recover 86 percent
In the list of these 12 cases, two major cases were in the final stages of Essar Steel and Bhushan Power and Steel Settlement. The cases of Binani Cement and JP Infratech are also in the process. Banks hope that they will be able to recover about 86 per cent of Essar Steel’s debt case of Rs 49,000 crore. ArcelorMittal has offered a total of Rs 50,000 crore for Essar Steel. It also includes capital investment of Rs 8,000 crore. Initially, JSW Steel had invested Rs 11,000 crore for Bhushan Power and Steel, Tata Steel Rs 17,000 crore and Liberty House bid bid of Rs 18,500 crore. JSW later revised its bid to Rs 19,700 crore.