Sunil Mehta committee submits its report to Finance ministry to tackle Non-Performing Assets (NPAs) and to create credit capacity
The Sunil Mehta committee which was formed with a view to tackle Non-Performing Assets (NPAs) and creating credit capacity submitted its report with recommendations to Union Finance Minister Piyush Goyal on July 2, 2018. The Sunil Mehta panel presented project ‘Sashakt’ and has recommended a five-pronged strategy to deal with NPAs in the country’s banking system. The five-pronged strategy includes — SME Resolution Approach (SRA), Bank Led Resolution Approach (BLRA), AMC / AIF led resolution approach, NCLT / IBC approach, and asset-trading platform. The report recommends a five pronged approach for loans from Rs 50 crore, Rs 50-500 crore and loans above Rs 500 crore. The committee has also suggested an asset trading platform for both performing and non-performing assets. The plan focuses on turning around assets in a manner that will create additional jobs by reviving businesses and prevent job losses from foreclosures.