WBIDC mulls hiving off distressed assets to ARCIL

KOLKATA: The West Bengal Industrial Development Corporation, the nodal agency for promotion of industry in the state, is in negotiations with Asset Reconstruction Company India Ltd to hive off some of its distressed assets.

"We have approached ARCIL as an option to sell our stress assets as part of the recovery process to improve our balance sheet," WBIDC Managing Director Subrata Gupta said.

"The process is at a very preliminary stage. We have asked them (ARCIL) to come as soon as possible and examine how far it is possible to restructure our stress assets with them," he added.

Gupta declined to comment on the quantum of stress assets they were aiming to sell to ARCIL. At present, it has an outstanding loan portfolio in excess of Rs 400 crore.

"It is very difficult to quantify. Some assets are under a legal process and it has to be seen how this option works out as we even do not know if at all we can sell them to ARCIL," Gupta said.

WBIDC was looking at such options as traditional methods are complex and lengthy. It aims to concentrate on its core activity of lending and promoting industry in the state.

ARCIL buys distressed assets only from banks and financial institutions and if the deal sails through, WBIDC will be the first state-owned development corporation to work with ARCIL.