Provide govt-backed Rs 3 trn liquidity line to coronavirus-hit unit: FICCI

Govt support to banks estimated at upto Rs 40,000 cr over 5 years

Amid fear of business collapse due to Covid-19 triggered lockdown, industry is looking for government-backed Crisis Liquidity — working capital and term loans — lines from banks amounting Rs three-four trillion.

According to the Federation of Indian Chambers of Commerce and Industry (FICCI) and global consultancy firm Deloitte, the cost of such support to government to banks would be limited to Rs 30,000–40,000 crore over five years.

In a two-step approach, the first task would be to isolate the impact of Covid on businesses and move the losses from P&L to the balance sheet. The second step entails banks to