Letter to BS: 'Project Sashakt' to solve the problem of bad loans?

It refers to “Project Sashakt: Several steps backward” (July 9). One more bad loan resolution plan has been launched by the government under the name Sashakt. But there is no significant difference between the existing plans and this one which has merely tweaked things here and there. 

The actual purpose should have been to identify ways to resolve the NPAs with significant recovery from these accounts. 

Bringing everyone on board remains a huge challenge. Price discovery through open auction will only happen when banks are ready to take significant haircuts to arrive at a logical resolution of stressed accounts. It is probably the biggest issue being faced by not only our banking sector, but our entire economy. 

Bal Govind Noida

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