India INC anticipates regulator Reserve Bank of India in its upcoming Monetary Policy Committee meeting to take necessary steps that enable continued growth resurgence. We hope that the Monetary Policy will empower India Inc. to ensure availability of due credit across the economy; extension of Insolvency and Bankruptcy Code exemption for a further period of 6 months and support in form of last mile funding options for stressed and delayed projects.
The Government of India through 2020, brought in measures to mitigate the effects of Covid-19 on businesses. In effect, some aspects of IBC were suspended. If the Covid-19 related provisions of the IBC are not extended, we will see a flurry of insolvency proceedings being initiated. Businesses which have survived the Covid-19 will face a liquidity crisis and we may see NPAs shooting up post March 31 2021. The recovery is well on its way and Industry needs a further extension to come out of the crisis – and we hope the RBI does the needful.
Dr. Niranjan Hiranandani is the National President of NAREDCO and MD of Hiranandani Group.