'Too early to assess impact of second Covid-19 wave': FM Nirmala Sitharaman

The second wave of the COVID-19 pandemic came as a Tsunami threatening to derail the economic growth, but Union Finance Minister Nirmala Sitharaman expresses confidence that the government has it under control. In an exclusive interview with Group Editorial Director Raj Chengappa and Business Today Editor Rajeev Dubey, she outlines the revival plan. Excerpts:

No, if you look at the steps we have taken. We formulated the ARC (Asset Reconstruction Company) model in such a way that NPAs (non-performing assets) will be shifted to a holding company, which, after due diligence, will invite asset investment funds to bid for it and take it. So the way we have planned it is that banks are sure that those NPAs which have been around for quite some time-not Covid related-will find their way out and they will get their due share at first go, in some part, and at the final stage when it is getting sold out. The rest of it will come to the bank.

Now, during 2020, we suspended those sections in the IBC (Insolvency and Bankruptcy Code), so no one can take people for insolvency because of Covid-related failures. It has helped and now, we are clear that with IBC, ECGLS and the additional support being given, many of them will be able to survive and move towards better days. There is a continuous monitoring of the stress levels of commercial operations by banks. I am also asking the ministry of corporate affairs to deal with companies and understand the stress level that they are finding in the markets. So, through the corporate affairs ministry and banks, ministries are doing real-time monitoring. With that, we are able to address that problem and prevent people from falling off the cliff.