India's total steel sector loan exposure is about Rs.3.13 lakh crore of which gross non-performing assets (NPAs) which accounts for 2% of India's GDP (gross domestic product), are around Rs 1.15 lakh crore. It accounts almost 37 percent of the total loan outstanding as on 31st March, 2016. Thus, making the sector one of the largest contributors to nonperforming assets (NPA) in the country.
Recently, the Prime Minister's Office (PMO), Finance Ministry and Steel Ministry held a joint meeting to resolve the NPA issue in the steel sector.
Of the total, Essar Steel, Monnet Ispat, Bhushan Steel, Electrosteel Steel and JSPL are among top five companies accounting maximum NPA problems. In order to minimize this nagging non-performing assets, the three ministries are working in coordination to work out a strategy to clear the major roadblock for the banking sector to lend loans. Atanu Mukherjee, President, M.N.Dastur & Company (P) Ltd expresses his views on the rising NPAs in the steel sector today in the excerpts of his interview in the April 2017 issue of Minerals & Metals Review.