As per the National Steel Policy, 2017, the Indian steel industry contributes approximately 2 per cent to the country's Gross Domestic Product (GDP).
The benefit of RBI schemes namely 5/25 Scheme and Scheme for Sustainable Structuring of Stressed Assets (S4A) for restructuring of debts of stressed companies can be availed by steel companies.
Public sector banks have been reeling under high non- performing assets (NPAs). Their NPAs have increased more than two-and-a-half times to Rs 7.33 lakh crore as of June 2017, from Rs 2.75 lakh crore in March 2015..
The RBI's internal advisory committee had identified 12 large stressed cases worth over Rs 5,000 crore, accounting to 25 per cent (Rs 1.75 lakh crore) of total gross non-performing assets, for proceedings under the insolvency and bankruptcy code.
The RBI in its second list of big defaulters released in August had asked banks to resolve 28 large accounts till December 13 or report them by December 31 to NCLT for insolvency proceedings. Of these, banks are set to refer as many as 23 accounts for insolvency proceedings.
These 28 accounts together account for 40 per cent of bad loans or around Rs 4 lakh crore.
Some of the large accounts which are likely to go to the NCLT include Uttam Galva Metallic, Uttam Galva Steel, Visa Steel and Essar Projects, among others.
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