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The IL&FS board has constituted a sub-committee to oversee the divestment of its stressed assets to bring down its overall debt.
The move comes in the backdrop of the RBI’s June 7 circular laying down guidelines for the resolution of bad loans.
The IL&FS board’s newly formed six-member empowered committee — which includes Vineet Nayyar, CS Rajan, Bijay Kumar, N Srinivasan, and COO N Sivaraman — will discuss and finalise the asset-wise framework of resolution with lenders, the company said in a statement after its board meeting here on June 28.
The committee was formed in view of the positive response received from financial institutions to the framework outlined by Prudent Norms for the resolution of stressed assets, the statement added.
Top-down approach
The board’s decision to constitute a sub-committee is seen by some as a tactic to buy time.
“Even after so many months, no one seems to know the extent of the problem. The sub-committee should go for a top-down approach — know the extent of the problem and then proceed to implement the RBI circular on stressed assets,” said Mohan Lavi, a Bengaluru-based chartered accountant.
Progress report
IL&FS also shared a progress report on the divestment of the domestic and overseas assets outlined in its resolution framework. It said the stake sales in seven wind energy SPVs are in the final stages. On May 19, Japanese company ORIX, which holds a 49 per cent stake in IL&FS Wind Energy, expressed its intent to buy the balance 51 per cent stake, matching GAIL’s offer.
Further, the IL&FS board has decided to allow the bidders for toll road assets to jointly monitor traffic data and assess the revenue stream.
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