Govt fears defaults from NBFCs soon if no liquidity lifeline is provided

India's Department of Economic Affairs (DEA) fears significant default from large non-banking finance companies (NBFC) and housing finance companies in the next six weeks if no additional liquidity support is provided to these firms, business news website MoneyControl said on Friday.

The DEA, in a letter to the Ministry of Corporate Affairs, described the financial situation as "still fragile" when discussing the financial stability impact of the Infrastructure Leasing and Financial Service Ltd's (IL&FS) default, the website said.

A string of defaults at IL&FS have triggered sharp falls in Indian stock and debt markets amid fears of contagion within the rest of