Lok Sabha Question No. 1169 (UNSTARRED), answered on 2023-12-11
Subject: Insolvency Resolution
Ministry: CORPORATE AFFAIRS
Asked by: Tapir Gao

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1169 ANSWERED ON MONDAY THE 11 TH  DECEMBER, 2023 AGRAHAYANA 20, 1945 (SAKA)

## INSOLVENCY RESOLUTION QUESTION

## 1169.      SHRI TAPIR GAO:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  the  steps  taken  by  the  Government  to  speed  up  and  strengthen  the  process  of insolvency resolution;
- (b) the benefits of setting up NCLT and NCLAT; and
- (c)  the  details  of  the  Special  Financial  Assistance  for  Capital  Investment  provided  to various States?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING; AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS

[RAO INDERJIT SINGH]

- (a) The Insolvency and Bankruptcy Code, 2016 (IBC/Code) is an evolving economic law, and in keeping with the market needs, six amendments have been made till date. These include pre-packaged insolvency resolution process (pre-pack) framework, for corporate MSMEs in order to provide a quicker and cost effective insolvency resolution process,  enactment  of  section  29A  which  bars  ineligible  persons  from  submitting resolution  plans  etc.  These  amendments  addressed  practical  challenges,  clarified provisions,  streamlined  processes,  and  addressed  various  legal  issues  which  have strengthened the effectiveness of the insolvency resolution process. The Insolvency and Bankruptcy Board of India (IBBI, Regulator under the Code) has through regulations endeavored to streamline processes, reduce delays, and maximise the value of  the assets of the Corporate Debtor.
- (b) National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT)  have  been  instrumental  in  faster  resolution  of  corporate  disputes  and promoting ease of doing business in the country. These bodies are playing pivotal role in resolving insolvency of corporate businesses, not only in the terms of faster process but the better realisation rates also, compared to earlier regimes.
- (c) Details  of  the  Special  Assistance  (Loan)  released  under  the  Scheme  for  Special Assistance  to  States  for  Capital  Expenditure/Investment  (2020-21  to  2023-24),  as provided by Department of Expenditure, Ministry of Finance is in the Annexure.

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ANNEXURE Funds released to States under the Scheme for Special Assistance to States for

## Capital Expenditure/Investment 2020-21 to 2023-24

(Rs. in crore)

| Sl. No.   | States            | 2020-21   | 2021-22   | 2022-23   | 2023-24 (as on 06.12.2023)   |
|-----------|-------------------|-----------|-----------|-----------|------------------------------|
| 1         | Andhra Pradesh*   | 688.00    | 501.79    | 6,105.56  | -                            |
| 2         | Arunachal Pradesh | 232.97    | 371.19    | 1,564.10  | 992.49                       |
| 3         | Assam             | 450.00    | 600.00    | 4,300.14  | 2,841.21                     |
| 4         | Bihar             | 843.00    | 1,246.50  | 8,455.85  | 6,135.54                     |
| 5         | Chhattisgarh      | 286.00    | 423.00    | 2,941.97  | 2,019.78                     |
| 6         | Goa               | 97.66     | 111.04    | 572.75    | 332.35                       |
| 7         | Gujarat           | 285.00    | 432.00    | 4,045.82  | 2,336.62                     |
| 8         | Haryana           | 91.00     | 135.00    | 1,267.00  | 679.25                       |
| 9         | Himachal Pradesh  | 533.00    | 800.00    | 650.80    | 644.36                       |
| 10        | Jharkhand         | 277.00    | 246.00    | 2,964.32  | 1,693.19                     |
| 11        | Karnataka         | 305.00    | 451.50    | 3,399.35  | 2,538.04                     |
| 12        | Kerala*           | 81.50     | 238.50    | 1,902.74  | -                            |
| 13        | Madhya Pradesh    | 1,320.00  | 1,512.36  | 7,360.20  | 5,325.60                     |
| 14        | Maharashtra       | 514.00    | 771.73    | 6,744.16  | 3,457.61                     |
| 15        | Manipur*          | 317.16    | 212.85    | 467.22    | -                            |
| 16        | Meghalaya         | 200.00    | 281.20    | 1,049.02  | 555.43                       |
| 17        | Mizoram           | 200.00    | 299.99    | 297.50    | 487.55                       |
| 18        | Nagaland          | 200.00    | 300.00    | 504.16    | 462.30                       |
| 19        | Odisha            | 471.50    | 517.12    | 75.00     | 3,039.77                     |
| 20        | Punjab*           | 296.50    | 223.50    | 798.22    | -                            |
| 21        | Rajasthan         | 1,002.00  | 692.41    | 5,595.64  | 3,987.91                     |
| 22        | Sikkim            | 200.00    | 300.00    | 551.36    | 271.66                       |
| 23        | Tamil Nadu        | -         | 505.50    | 4,011.27  | 2,643.65                     |
| 24        | Telangana         | 358.00    | 214.14    | 2,500.98  | 1,140.84                     |
| 25        | Tripura           | 300.00    | 118.54    | 349.79    | 258.77                       |
| 26        | Uttar Pradesh     | 976.00    | 1,483.00  | 7,940.50  | 12,458.43                    |
| 27        | Uttarakhand       | 675.00    | 263.92    | 1,124.01  | 785.78                       |
| 28        | West Bengal       | 630.00    | 933.00    | 3,655.92  | 5,015.58                     |
|           | TOTAL             | 11,830.29 | 14,185.78 | 81,195.35 | 60,103.69                    |