Package to resolve NPAs gets Cabinet nod:
To resolve the persistent rise in non-performing assets, the government cleared a package. The package includes an ordinance to amend the Banking Regulation Act of 1949, which empowers the Reserve Bank of India to take more actions to check bad loans.
Status of NPA’s:
The Economic survey of 2016-17 has pointed out the twin balance sheet problem. The problem includes stressed companies on one hand and NPA-laden banks on the other and advocates that a centralized Public Sector Asset Rehabilitation Agency (PARA) be established to deal with the problem of bad loans.
According to Reserve Bank of India data,
- Gross NPA, as a percentage of gross advances went up to 9.1% in September 2016 from 5.1% in September 2015.
- Stressed assets which is gross NPA plus standard restructured advances and write-offs, moved up from 11.3% to 12.3% and some estimates even suggest it had doubled since 2013
- Public sector banks share a disproportionate burden of this stress. Stressed assets in some of the public-sector banks have approached or exceeded 20%
Disinvestment in hotels:
- The Union Cabinet also kicked off the disinvestment process for hotels owned by the India Tourism Development Corporation (ITDC)
- The government has decided to lease or sub-lease hotels or properties jointly with the concerned states or return the properties to the States, after fair valuation
- States would then have the option to upgrade and operate the hotels by involving the private sector or to utilize the properties as per their requirements
National Steel Policy 2017:
- It is aimed at attracting 10 lakh crore investments in the steel sector by 2030-31
- The policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DMI&SP), in Government Procurement
- The policy is applicable on all government tenders where price bid is yet to be opened
- The policy projects creating crude steel capacity of 300 million tones (MT)
