Loan restructuring for 'thrust sectors' should not be restricted for only 2 yrs: Vikramjit Sahney

NEW DELHI: The loan restructuring for "thrust" sectors, including auto, tourism, manufacturing and real estate, should not be restricted for only two years as it will take a bit longer for them to return to pre-COVID-19 levels, International Chamber of Commerce (ICC Paris-India) President Vikramjit S Sahney said on Thursday.

Singh also urged upon the Reserve Bank to remove the nomenclature that banks at their discretion may consider restructuring.

There is no need of discretion by the banks as the RBI has already put preconditions like account should not be an NPA as on March 1, he said in a statement.


"The restructuring for various thrust sectors like automotive, tourism, hospitality, manufacturing, housing, real estate, trading wholesale etc, should not be restricted only for two years as it will take a bit longer for them to bounce back to pre-COVID levels," he said.

He further requested the RBI that they should issue guidelines to all the banks to give credit lines to all the companies against government receivables.

Sahney recommended to the finance ministry that direct benefit transfer of various subsidies should be exhorted to including subsidy for fertilisers to de-bottleneck the industry from the same.

He also pitched for setting up of agri supply value chains as the agriculture sector has been largely unaffected by this pandemic.