The Centre will approve a fresh financial package for Essar Steel, Jindal Vijayanagar Steel and Ispat Industries. The package, which was finalised today, includes waiver of penalty on loan defaults, conversion of a portion of the debt of banks and financial institutions (FIs) into equity and a reduction in interest rates.
Finance Secretary S Narayan today held a meeting with the chiefs of ICICI Bank, IDBI, State Bank of India and IFCI to fine-tune the restructuring proposal. The total exposure of the banks and FIs to the three companies is to the tune of Rs 20,000 crore.
Talking to Business Standard, the chairman of a financial institution said,