The meeting was attended by top construction companies, SBI , Niti Aayog and Department of Fin Services (DFS).
According to sources, both bankers and infrastructure companies believe Reserve Bank of India’s (RBI) current debt restructuring schemes will not be able to revive the construction sector and hence these meetings have been held with PMO to finalise a onetime scheme for construction companies to offload their debt.
Agreeing with the industry and construction companies, SBI suggested 50 percent equity conversion clause in scheme along with deep restructuring with extended loan periods for construction sector. The construction companies have suggested a 15-year extended loan repayment period for companies.
The bank also suggested one-time dispensation should not be classified as NPA and extended loan periods should be granted based on projected cashflows.
The companies too made few suggestions and batted for oversight committee to implement the scheme and also acceleration in the upgradation process of NPAs.
Companies want the scheme to allow 70 percent of existing debt to be converted to equity. They also suggested giving banks freedom to restructure debts.
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