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Govt should set up AMC to deal with NPAs: Ficci

Recommendations submitted to DIPP part of a paper titled 'Executive Actions to enable Make in India'

Press Trust of India  |  New Delhi 

Harshavardhan Neotia named FICCI's president elect

As the sector grapples with mounting bad loans, has suggested that the government establish a National Company (NAMCO) for one-time resolution of large

"The proposed time-bound and close-ended framework NAMCO would require Government sponsorship but no capital injection or guarantees. Ministry of Finance can encourage public sector banks (PSBs) to take up to 49.9% equity in NAMCO and the balance equity will be sourced from private sector banks and other private financial institutions.

"NAMCO shall focus on rehabilitation of large-scale (non-performing assets), restructured loans and other potential stressed assets, mainly in the infrastructure sector," said.

The recommendations submitted by the industry chamber to the and Department of Industrial Policy and Promotion recently, are part of a paper titled 'Executive Actions to enable Make in India'.

Major state-owned banks in the country including have been reeling under leading to erosion of profits on account of higher provisioning for bad loans in the third quarter of the current fiscal.

First Published: Sun, February 21 2016. 11:48 IST