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Monnet Ispat’s woes are far from over as public sector undertaking SAIL has brushed aside pleas to take over the assets of the debt-ridden company.
Speaking to BusinessLine , Union Steel Minister, Birender Singh said, “SAIL has refused to take over assets of stressed companies like Monnet Ispat.”
Singh was responding to a query seeking an update on the government’s earlier proposal to have stronger companies take over stressed assets of debt ridden steel companies.
BusinessLine had reported earlier that large companies in the steel and infrastructure sectors dominate the list of 12 large accounts identified by an RBI panel for resolution under the Insolvency and Bankruptcy Code, 2016 (IBC). The collective outstanding debt of these accounts is about Rs 2-lakh crore.
Singh said that steel companies in the list will be complying with norms under the Insolvency and Bankruptcy Code “We are about 28 per cent of the total stressed debt. For the last six to eight months, there has been a smooth repayment. If the new methodology has to be applied for the six top defaulters then let us see what comes out.”
BusinessLine had reported on June 17 that at the Joint Lenders Forum (JLF), banks are likely to take a call on companies such as Essar Steel, Bhushan Steel, Bhushan Power, Alok Industries, Electrosteel Steels, Monnet Ispat, and ABG Shipyard. According to sources, the other names on the list could include Jaypee Infra, Lanco Infratech, Jyoti Structures and Amtek Auto.
Singh also said the plan to lower interest rates for large infrastructure projects will take some time now. Commenting on the earlier proposal to restructure debt and ensure some interest subvention, he said, “This is not connected with any government policy. I think ₹15 lakh crore of bank deposits will be lent out. This will ease the interest rate. For the time being, government is of the opinion that banks should take the initiative. It may take some time.” There would be single digit interest rate, between 6 per cent and 8 per cent, he added.
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