Creditors got Rs 2.45 trn from 394 resolution cases under IBC: FinMin

Amount realised in top 100 CIRPs is Rs 2.37 trillion, over 36% of admitted claims

Financial creditors, including banks, realised Rs 2.45 trillion from approved resolution plans for 394 corporate insolvency resolution cases under the Insolvency and Bankruptcy Code as on June 30, Minister of State for Finance Pankaj Chaudhary said. Creditors got Rs 2.37 trillion through approved resolution plans of top 100 CIRPs, which is over 36 per cent of the admitted claims.

About 4,540 cases were admitted for the corporate insolvency resolution process under IBC until June 30, 2021, Chaudhary said in response to a query in Lok Sabha.

In a separate response, the minister said, the separate framework for resolution of systemically important financial service providers other than banks, has led to approval of a resolution plan that will help in realising Rs 37,167 crore.

However, in many cases under the IBC, the haircut taken by the lenders reached 80-90 per cent. As per publicly available data, 240 corporate debtors that have been liquidated till December 2020, had outstanding claims of Rs 33,086 crore, with assets valued at Rs 1,099 crore.

The lawmakers were also informed that recovery by banks as a percentage of their gross non-performing assets dipped in FY21 due to the Covid-19 pandemic. Scheduled Commercial Banks (SCBs) recovered Rs 4.18 trillion during the last three financial years, with recovery as a percentage of their gross NPA increasing from 13.1 per cent in FY18 to 15.1 per cent in FY19. The recovery increased to 15.8 per cent in FY20 to drop to 12.8 per cent in FY21 in the backdrop of the pandemic.

Strong fundamentals to attract foreign investments

India’s strong fundamentals and market size will continue to attract market-seeking greenfield investments, Finance Minister Nirmala Sitharaman said.

Quoting the World Investment Report 2021, Sitharaman in a written reply to Lok Sabha, said FDI inflows into India rose by 25.4 per cent to reach $64 billion in 2020, from $51 billion in 2019, becoming fifth largest recipient in the world in 2020, up from eighth position it held in the previous year.

However, the announced greenfield projects in India contracted by 19 per cent in 2020, she said. This decline is significantly lower than the 44 per cent decline in developing economies, she added.

"As has been witnessed in overall FDI inflows, India's strong fundamentals and market size will continue to attract market-seeking greenfield investments," she said.

Shift in divestment stance

The government’s divestment plan has changed over the years, and scope of minority stake sales has declined, said Minister of State for Finance Bhagwat Kishanrao Karad.

“Going forward, privatisation would be the primary mode for divestment receipts,” Karad said in response to a query.

As on July 17, the government has mopped up Rs 7,645 crore in disinvestment receipts in the current financial year.

Several disinvestment transactions are expected to be completed during the year, Karad said.  The initial public offering (IPO) of the Life Insurance Corporation of India (LIC) is also planned to be completed during the year, he said.

Disputed tax of Rs 99,765 crore settled under Vivad se VIshwas

Over 132,000 declarations involving disputed tax of Rs 99,765 crore have been filed under the 'Vivad se Vishwas' dispute resolution scheme. Declarations received under the scheme cover around 28.73 per cent of the pending direct tax disputes, MoS Finance Pankaj Chaudhary said.