HYDERABAD: As many as 320 companies including Tata Power, Taj GVK Hotels and Piramal Enterprises have opted for the three-month moratorium scheme on loan servicing, according to data compiled by rating agency ICRA.
Last month, the Reserve Bank of India (RBI) had allowed banks and financial institutions to defer the payment of instalments on working capital loans falling due between March 1 and May 31. The option was announced as part of the Covid-19 regulatory package and approval from the lending institutions will be received either after the original due date or is still pending to be received.
Some of the other entities that opted for the moratorium include TV Sundaram Iyengar & Sons, JSW Steel, Jindal Steel and Power Ltd, real estate major Prestige Group, and Vikram Solar.
The list also includes some big names in the hospitality and aviation sector such as Taj GVK Hotels, Lemon Tree Hotels Ltd and GMR Hyderabad Aviation SEZ Ltd. Besides, it also includes NBFCs and MFIs including Indostar Capital Finance Ltd and Piramal Capital & Housing Finance Ltd.
However, Icra hasn’t disclosed the quantum of outstanding debt of these entities or the interest overdue during the moratorium period. According to Icra, missed payments by these entities even in the case of those pending formal approval from the lending institutions prior to the original due date won’t be considered an instance of default.
Most of the companies that have availed of the relief so far are those with AA ratings and below, and the list has been published by Icra in line with the new guidelines laid down by the Securities and Exchange Board of India (SEBI) on relaxation in compliance for default recognition amid the loan moratorium granted by RBI.
Move part of Covid-19 relief package
Last month, the RBI had allowed banks and financial institutions to defer the payment of instalments on working capital loans falling due between March 1 and May 31 as part of the Covid-19 relief package