80% of firms set up in post-economic reforms era have huge debt burden

Companies that went on an expansion spree after economic reforms are paying a stiff price for their ambition. Most of the corporate India’s heavily indebted firms were incorporated after 1980 and their growth plans were taken up in the 1990s, the era of economic reforms in the country.

Of the 67 top listed companies not able to service interest on their debt during 2016-17 due to inadequate profits, 53 started operations in the post-1980 period when private investment in many sectors was first liberalised.

Some of the post-1980 companies facing headwinds include Jaiprakash Associates (incorporated in 1995), Alok Industries (1986),