Minister of Finance Arun Jaitley said on Monday that the board of IL & FS and its stakeholders will tackle the debt crisis of the company.
When Jaitley asked about the IL & FS problem, he said: "I do not comment on this, let their management and stakeholders handle the case."
Jaitley responded to reports from reporters about reports published earlier on Monday, which said that the Ministry of Finance was approached after the main stakeholder of IL & FS, the state-owned Life Insurance Corporation and others rejected a loan facility of Rs 30 billion.
According to these reports, the company requires this amount to forego the obligations related to Commercial Paper (CP) and a reduction of the ratings.
LIC is the largest shareholder in IL & FS with a participation of 25.34 percent, while the state bank of the state of India has a 6.42 percent stake.
The two financial institutions are in turn under the supervision of the Department of Financial Services (DFS).
The reports said, however, that the ministry had a negative image of IL & FS's proposal to avert the impending debt crisis.
As part of its fundraising plans, the company's board had approved a rights issue on August 29 of 300 million shares at Rs 150 per share, calculated at Rs 45 billion to strengthen the capital. The process would have been completed by October 30, the company said earlier in a statement.
"On 31 March 2018, the net amount of IL & FS Rs was 74 billion and the Board also approved the re-capitalization of group companies for an amount of Rs 50 billion in IL & FS Financial Services, IL & FS Transportation, IL & FS Energy. , IL & FS Environment, and IL & FS Education, "the company said.
"The Board also approved the Company's specific divestment plan, based on which IL & FS expects to reduce the total debt by Rs 300 billion. 14 projects. "
The August 29 statement also stated that the company expects to complete its divestment plan in a systematic and professional manner over the next 12 to 18 months to meet its obligations.
The group has approximately trillion trillion of debt in its books.
IL & FS companies form an ecosystem of expertise in infrastructure, finance and social and environmental services
Originally promoted by the Central Bank of India, Housing Development Finance Corporation Limited and Unit Trust of India, IL & FS was founded in 1987.
Over the years, it has initiated institutional shareholders such as SBI, LIC, ORIX Corporation from Japan and the Abu Dhabi Investment Authority (ADIA).
On March 31, 2018, LIC and ORIX Corporation are the largest shareholders of IL & FS with a stake of respectively 25.34% and 23.54%. Other prominent shareholders are ADIA (12.56 per cent share), HDFC (9.02 per cent share), CBI and (7.67 per cent share) and SBI (6.42 per cent stake).