Govt backs NARCL with Rs 30,600-crore guarantee for five years

Stressed assets of about Rs 2 trillion to be acquired in phases

Union Finance Minister Nirmala Sitharaman on Thursday said the National Asset Reconstruction Company Ltd (NARCL) would be operational soon, and it had to ensure resolving bad loans within five years, beyond which the guarantee to be issued by the government would expire.

The Cabinet on Wednesday had approved a government guarantee of Rs 30,600 crore to be provided for the security receipts issued by the NARCL to buy bad loans of lenders.

“Within five years we expect to clear (resolve) it, and the sooner they (NARCL) do it, the better they are placed because of the charges which they otherwise will have