New Delhi: Government will soon come out with plans to deal with payments crisis at Infrastructure Leasing and Financial Services (IL&FS).
As per Zee Media sources, among the 3-pronged strategy address the problems at the diversified entity. In the first step, the government may soon appoint an independent engineer to make actual report on the stalled projects of IL&FS.
Secondly, NHAI may takeover projects which have neared 50 percent completion. Consequently, the NHAI will clear full and final payment of the contractor before taking over the project. Sources told Zee Media that there are about 5 such projects, though a board meeting of the IL&FS will take place before finalising on it.
IL&FS and its subsidiaries are facing liquidity crisis and have defaulted on several debt repayments recently.
Thirdly, sources said that as part of its turnaround plan, government may also contemplate about financing the stalled projects. Government may put in financial aid for projects which are nearly 40-50 percent complete.
The IL&FS crisis has sparked off concerns of liquidity crunch in the financial markets. On October 1, the government superseded the board of IL&FS and appointed a six-member board with Uday Kotak as the non-executive chairman to restore the confidence of the financial market in the diversified group.
As of March 2018, the company has debt of over Rs 91,000 crore to a banks and other creditors and since August 27, it has been on defaulting spree.