The steel sector has turned out to be one of the major beneficiaries of the Insolvency and Bankruptcy Code (IBC), according to ratings agency ICRA Ltd. This could lead to improved plant utilisation and domestic steel supply. Out of the 40 large defaulting accounts identified by the RBI in 2017, 11 entities belonged to the steel sector. As per ICRA report, eight out of these 11 companies have steel manufacturing capacities totalling about 23.8 million metric tonnes per annum (mtpa) forming about 18% of the total domestic steel capacity.
Sharing his views Abhishek Dafria, vice president, ICRA said: The steel sector has provided an impetus to the IBC with four large corporate debtors having already completed the corporate insolvency resolut…
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