A weak government could not have handled IL&FS crisis the way Modi government did: Arun Jaitley

A day after National Company Law Appellate Tribunal (NCLAT) stayed on all proceedings against crisis-hit IL&FS group and its subsidiary companies over any past or future loan defaults, Finance Minister Arun Jaitely lauded the Narendra Modi-led government’s efforts to contain the crisis at debt-ridden IL&FS, saying it would have not been possible in case of a weak leadership at the Centre A weak leadership, within days of the crisis, could not have handled IL&FS the way the present government did, and therefore a crisis in the making was handled with swiftness, Jaitley said. Meanwhile, Jaitley also said that India presently needs a strong, decisive government at the centre to take the swift decisions as well as maintain high economic growth In the April-June quarter of the current financial year 2018-19, the Indian economy recorded a growth of 8.2% current fiscal, while it grew at 6.7% in the financial year 2017-18. Debt-laden IL&FS, which has a long and short-term debt of Rs 91,000 crore, of which Rs 57,000 crore is taken from PSU banks, has defaulted on several short-term repayments in the recent past. The company needs an immediate capital infusion of Rs 3,000 crore. The crisis at IL&FS came to light in September when the groups and its subsidiaries defaulted on Rs 1,000 crore from Small Industries Development Bank of India (SIDBI). After a few more defaults, the central government had to intervene on October 1 by superseding the board with the appointment of Uday Kotak as its chairman. Meanwhile, it was also reported that the National Highway Authority of India (NHAI) may acquire incomplete projects of IL&FS for revival or inviting new bid. The Uday Kotak-led board also held two meetings in which top executives were appointed.

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