Government today said the quantum of corporate debt restructuring (CDR) has grown about fourfold in less than five years.
According to the Corporate Debt Restructuring Cell, the aggregate debt amounted to Rs 4.03 lakh crore by way of 530 cases as on December 31, Lok Sabha was informed today.
As on March 2010, the total number of cases stood at 215 amounting to Rs 1.04 lakh crore.
The CDR mechanism is an organisational framework, institutionalised for speedy disposal of restructuring proposals of large borrowers availing finance from more than one bank/financial institution, in a written reply to Lok Sabha, Corporate Affairs Minister Arun Jaitley said.
The CDR mechanism is available to all borrowers engaged in any type of activity subject to two conditions, first, the borrowers enjoy credit facilities from more than one bank/ financial institution under multiple banking/syndication /consortium system of lending and the total outstanding (fund based and non-fund based) exposure is Rs 10 crore or above.
CDR system in the country has three tier structure consisting of CDR Standing Forum and its core forum, CDR Empowered Group and CDR Cell which are housed in Industrial Development Bank of India Ltd.