Corporate Affairs Ministry Reviews IL&FS Resolution Progress

The corporate affairs ministry this week reviewed the steps taken to address the issues pertaining to Infrastructure Leasing & Financial Services and is "generally satisfied" with the progress, according to an official.

After the crisis at diversified IL&FS came to light last year, the ministry had superseded its board and since then various measures have been taken to address the issues as well as repay outstanding dues of the group.

In October, veteran banker Uday Kotak was given one-year extension as head of IL&FS, which was estimated to have debt worth over Rs 94,000 crore.

The group is aiming to address the repayment of half of its debt pile through resolution, recovery and restructuring by the end of March. It has also identified resolution plan for all its 302 entities— 169 domestic and 133 international ones.

Against this backdrop, the ministry reviewed the progress made in resolving IL&FS issues. "We reviewed and were generally satisfied with the progress made," the official said.

As part of the resolution, the new board of IL&FS has also sold a number of assets to clear debt. On Dec. 4, IL&FS reported a standalone net loss of Rs 22,527 crore for 2018-19. In the year-ago period, the loss stood at Rs 333 crore.

During this period, the entity's revenue declined to Rs 824 crore from Rs 1,734 crore in 2017-18.