New Delhi: Ship-building companies have petitioned the Supreme Court that the industry can survive only if the February 12 circular of the Reserve Bank of India (RBI) is quashed and set aside. The Shipyards Association of India (SAI) has told the apex court that in case the order is not quashed or set aside, the circular must incorporate a few critical changes to make the industry viable.
The association said the threshold of 100 per cent approval of lenders be reduced to 50.1 per cent in value terms and the timeline of 180 days as mandated be increased to a period of at least 365 days or higher from the date of judgement. The RBI has clarified that the approval threshold requirement of 100 per cent lenders is mis-conceived. Even if a miniscule of lenders objects, a borrower may work out separately with that lender, it said.
