Why Not Create ARC for MSME?
During last few years, the efforts by ARC is through small, but noticeable to resolution has come to few large NPA.
But in MSME, as the cost of turnaround is high, can Sunil Mehta committee can think of creating a specialised ARC for MSME.
As of today, the very large capital base is required to create ARC and they are looking for IRR of 27% over a span of 5 to 7 years.
As Growth Idea Lab also proposes to follow a similar model but at reduced IRR and at lower capital base can RBI relax their norms for such Specialised ARC who will look after loan liability of 1cr and 10cr only?
Can Govt of India, gives tax concessions to the investors so that without depending on govt finances, it can be done.
We are ready to take a similar project on a pilot scale.