Distressed Units- Some suggestions to Revive

UPA was ruling the country since 10 years in beginning of 2014 without any major challenges and the last 3 years had witnessed policy Paralysis. The country could not see any vibration as if every thing was left to the hands of God. Inflation was continuously increasing and people were simply waiting for this government to go as there was no effect on the deaf ears of the leaders in power. After long wait new government, NDA, came into power amidst lot of cheers and hopes. The business fraternity was expecting positive view and support from the new rulers. Though they were taking issues on priority, it was long wait till first boost up came in the form of interest rate reduction of .25 bps. We lost golden opportunity of cheaper crude prices to boost the morale of the business community. In fact in last decade, there had been lot of challenges to the industry causing severe losses due to macro factors. Many small and large business houses defaulted to the loans borrowed from banks and institutions. There may be some cases of willful default, fraud or cheating but maximum businesses defaulted due to the circumstances beyond their control. Situation though did not deteriorate after NDA government came into power but nothing much is done so far to life the suffering businesses. Rather the same tune is being sung by the new team too. Blaming only and only entrepreneur for the default has become the fashion in finance world. I am of the opinion that still there is great potential to save the bleeding organizations if some proactive approach is adopted.

I suggest following measures immediately which can not only revive the economy at grass root level but also save the jobs of millions serving in private sector:
1. Those industries reeling under severe financial crunch but still operating somehow shall be immediately helped by extending fresh funding if possible or by restructuring their loans. The terms may stringent enough to stop further financial losses to the lending institutions. Recent RBI guidelines towards Strategic Debt Restructuring (SDR) Scheme may be implemented to control the stressed units.
2. Industries operating but NPA , SHALL BE given MINIMUM SIX MONTHS' moratorium towards repayment of interest and principal. This will help them stand on their own.
3. No new account shall be categorised as NPA for next nine months. Such borrowers can arrange funds on their own to avoid being branded failure under CIBIL and come out of the current tough situation.
4. Role of ARC shall be reviewed as they have caused more loss to the economy then any benefit. These were floated to help business revive but rarely any account has been revived by them. They behave like vultures where they can get 24-30% pa return on their meager investment. There should be detailed enquiries on the accounts taken up by them ( In the year 2014-15, they have acquired more than 50k Crs. defaulting loans from Banks) by paying hardly 10% to the bankers. In fact the bankers prefer ARCs instead of helping the borrower as this relieved them from any accountability.
5. Government should think seriously on building up an institution to restructure and rehabilitate the distressed units. A fund should be created separately instead of giving support to the bankers who use such funds to lend further.
6. MSME segments needs immediate relief from interest rates. 

    Above all there should be trust between lenders and borrowers notwithstanding the fact that some of the borrowers have defrauded the lenders but number of such borrowers is not more than 5%, however in value terms it may be 15-20%. Big borrowers have given big hit to the lenders, while small borrowers suffered most. If serious steps not taken to boost the confidence of promoters, the fear of depression and unemployment can come true. The revival may not only boost economy but give new jobs to millions.