Financial institution IFCI Ltd is planning to hand over assets worth around Rs 2,000 crore, accounting for over half the sticky assets on its books to Asset Care Enterprises (Ace) Ltd, the asset reconstruction company, on a service contract.
The assets will, however, remain on IFCI books. Senior IFCI executives told Business Standard that Ace, where the institution holds 49 per cent stake, will be paid a fixed management fee for managing the assets transferred to it.
In addition, Ace will also receive 1.5-3 per cent of the value on disposal of the assets belonging to about 40 companies. The proposal will be taken up by the institution
