Lok Sabha Question No. 849 (UNSTARRED), answered on 2022-02-07
Subject: Recapitalisation of Banks
Ministry: FINANCE
Asked by: Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-849

ANSWERED ON- 7/2/2022

## RECAPITALISATION OF BANKS

## 849. SHRI MANISH TEWARI

Will the Minister of FINANCE be pleased to state:

- whether it is a fact that haircuts been doled out to companies such as Essat; DHFL and Videocon, costing the banking sector thousands of crores; heavy have large
- (5) if so, the details of all such haircuts and discounts given to big corporations the last five years; during
- whether it is a fact that the Government has recapitalized many banks in the recent years if s0, the details of the funds used to recapitalize banks during the last five years;
- (d) the details of the functioning of Asset Reconstruction Companies (ARCs) and the NPAs recovered through deals made with ARCs including the amount of haircuts taken by banks; and
- (e) the details of all the Corporate Insolvency Resolution Processes under IBC that crossed their time limit of 180 extendable upto 270 days? have days

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(DR BHAGWAT KARAD)

- (2) and (): As per inputs received from the of Corporate Affairs (MCA), as on 31.12.2021 43 corporate debtors, each with total admitted claims of Rs. 2,500 crore were resolved through the market driven corporate   insolvency resolution process (CIRP) under the Insolvency and  Bankruptcy Code, 2016. These corporate debtors (CD) owed a total of Rs 5.44 lakh crore to financial creditors while their liquidation value was Rs. 1.06 lakh crore: Further; realisable value for financial creditors through the approved resolution plans was Rs. 1.91 lakh crore; which is 179%/ of the liquidation value of these corporate debtors, and 35 % of the admitted claims Details in respect of these companies including Essar Steel and DHFL are at Annex: The matter related to Videocon has not reached and fresh bids are invited, as per the National Company Law Appellate Tribunal s order dated 5.1.2022. Ministry large finality being

(c): Government has infused Rs. 3,10,997 crore to recapitalise banks during the last five financial years from 2016-17 to 2020-21,out of which Rs. 34,997 crore were sourced through budgetary allocation and Rs 2,76,000 crore through issuance of recapitalisation bonds to these banks. i.e.,

(d): Assets reconstruction companies (ARCs) are certificate of registration by the Reserve Bank of India (RBI) for commencing the business of securitisation or asset reconstruction, under the Securitisation and Reconstruction of Financial Assets   and Enforcement of Security Interest 2002 (SARFAESI ACT) ARCs financial assets a8 per theic Board-approved Financial Asset Acquisition which each ARC is to have in as per RBI guidelines Further; an ARC, for the purposes of asset reconstruction, may take the following measures, viz: granted acquire Act, Policy, required place

- the sale or lease ofa part or whole of the business of the borrower;
- the proper  management of the business of the borrower; by change takeover of, the management of the business of the borrower; in,
- (ii) rescheduling of payment of debts by the borrower; payable
- (iv) enforcement of  security interest in accordance with the provisions of the SARFAESI Act;
- settlement of dues by the borrower; payable

(vii) conversion of any portion of debt into shares of a borrower company:

- (vi) possession of secured assets in accordance  with the provisions of the SARFAESI Act; taking

As per RBI data as on 30.9.2021, ARCs have assets valuing Rs. 3.74 lakh crore from banks and financial institutions, with aggregate acquisition cost of Rs. 1.04 lakh crore. acquired

1699 corporate debtors, out of which, process has exceeded the timeline of 180 in respect of 1355 corporate debtors days xxxxx

## Lok Sabha Unstarred Parliament Question No. 849,for 7.2.2022

## Details of lacge companies (with total admitted claims of Rs. 2500 crore and above) resolved under the Insolvency and Bankruptcy 2016 Code,

Amounts in crore Rs.

| Name of Corporate Debtor                             | Admitted Claims of Financial Creditors (FCs   | Liquidation Value   | Realisable Amount by FCs   |
|------------------------------------------------------|-----------------------------------------------|---------------------|----------------------------|
| Adhunik Metaliks Limited                             | 5,371                                         | 432                 | 410                        |
| Alok Industries Limited                              | 29,524                                        | 4,433               | 5,052                      |
| Amtek Auto Limited                                   | 12,641                                        | 1,543               | 2,615                      |
| Asian Colour Coated Ispat Limited                    | 6,567                                         | 619                 | 1,538                      |
| Bhushan Energy Limited                               | 2,780                                         | 721                 | 730                        |
| Bhushan Power & Steel Limited                        | 47,158                                        | 9,514               | 19,350                     |
| Bhushan Steel Limited                                | 022 56,C                                      | 14,541              | 35,571                     |
| Binani Cements Limited                               | 6,469                                         | 2,301               | 6,469                      |
| Castex Technologies Limited                          | 7,522                                         | 501                 | 1,266                      |
| Dash Exports Private Limited                         | 4,800                                         | 28                  | 27                         |
| Deccan Chronicle Holdings Limited                    | 8,181                                         | 530                 | 358                        |
| Dewan Housing Finance Corporation Limited            | 87,083                                        | 26,850              | 37,161                     |
| Dighi Port Limited                                   | 3,057                                         | 356                 | 651                        |
| Electrosteel Steels Limited                          | 13,175                                        | 2,900               | 5,320                      |
| EMC Limited                                          | 6,150                                         | 422                 | 538                        |
| Essar Power M P Limited                              | 12,068                                        | 1,733               | 2,500                      |
| Essar Steel India Limited                            |                                               | 15,838              | 41,018                     |
| Garden Silk Mills Limited                            | 2,090                                         | 694                 |                            |
| Gupta Infratec Private Limited                       | 3,327                                         | 65                  | 70                         |
| Jet Airways (India) Limited                          | 7,454                                         | 2,555               | 1,010                      |
| Jyoti Structures Limited                             | 7,365                                         | 1,023               | 3,691                      |
| Kohinoor CTNL Infrastructure Company Private Limited | 2,528                                         | 330                 | 2,246                      |
| Korba Power Company Limited West                     | 5,032                                         | 1,455               | 1,167                      |
| KumarS Metallurgical Corporation Ltd                 | 5,607                                         | 16                  | 41                         |
| Lanco Teesta Hydro Power Limited                     | 2,503                                         | 132                 | 878                        |
| Lanco Thermal Power Limited                          | 33,331                                        | 132                 | 136                        |

| Monnet Ispat and Energy Limited              |        | 11,015 2,365   | 2,892   |
|----------------------------------------------|--------|----------------|---------|
| Murli Industries Limited CN                  | 2,783  | 231            | 348     |
| Odisha Pipeline Infrasructure Limited Slurry | 3,387  | 1,199          | 2,353   |
| Orchid Pharma Limited                        | 3,527  | 1,309          | 1,035   |
| Orissa Manganese & Minerals Ltd              | 5,389  | 301            |         |
| Pradip Overseas Limited                      | 2,650  | 101            | 126     |
| Ramsarup Industries Limited                  | 5,852  | 614            | 351     |
| Reliance Infratel Limited                    | 41,055 | 4,340          | 4,236   |
| Ricoh India Limited                          | 1,728  | 444            | 200     |
| Ruchi Industries Limited Soya                | 9,385  | 2,391          | 4,093   |
| Sai Wardha Power Generation Limited          | 4,738  | 597            | 635     |
| SEL Manufacturing Company Limited            | 7,242  | 998            | 1,090   |
| Splendid Metal Products Limited              | 3,632  | 269            | 438     |
| Ushdev International Limited                 | 3,293  | 67             | 197     |
| Uttam Galva Metalics Limited                 | 3,634  | 866            | 1,111   |
| Uttam Value Steel Private Limited            | 2,479  | 696            | 818     |
| Zion Steel Limited                           | 5,367  | 15             | 15      |

Source:

of Corporate Affairs Ministry