InvestorQ : How many Indian companies have actually opted for the moratorium on payment of instalments on loans to banks?
Dhwani Mehta made post

How many Indian companies have actually opted for the moratorium on payment of instalments on loans to banks?

Answer
user profile image
Khushi Patel answered.
5 months ago


Recently, ICRA had released a list of 328 companies, from its rating universe, including large corporates like JSW Steel, Tata Power, and Piramal Enterprises, which have sought moratorium on loan repayment from banks. While some of the companies could be facing liquidity issues due to the nationwide lockdown, others may be simply looking to conserve cash. This includes some renewable energy companies backed by marquee global investors with billions of capital, indicating that even these investors might not be willing to immediately put up more capital to repair balance sheets broken by the covid-19 crisis and sectoral challenges. The troubles faced by renewable energy companies are not entirely linked to the covid-19 crisis. The sector has been on the slow track due to issues related to state governments such as Andhra Pradesh wanting to renegotiate power purchase agreements to reduce the cost of the power they were buying.