Project Shashakt The government has announced a comprehensive plan Project Sashakt for the resolution of stressed assets in banking sector. It is recommended by Sunil Mehta Committee. Project Sashakt: It is a five-pronged strategy towards resolution of stressed assets- 1. Small and Medium Enterprise (SME) resolution approach: It will be applicable for loan exposure up to ₹ 50 crore to be dealt at bank level within 90 days. 2. Bank-led resolution approach: For bad loans of ₹ 50-500 crore, banks will enter an inter-creditor agreement, authorizing the lead bank to implement a resolution plan in 180 days, or failing which the case will be referred to the National Company Law Tribunal (NCLT) for insolvency proceedings. The resolution plan must be approved by lenders holding at least 66% of the debt. 3. AMC/AIF led resolution approach: For loans above ₹ 500 crore, the panel recommended an independent Asset Management Company (AMC), supported by institutional funding through sectorspecific alternative investment funds (AIFs). The price discovery of these NPAs will be through open auction. 4. NCLT/IBC approach: IBC will be invoked if other options fail. 5. Asset-trading platform to be created for trading of both performing and NPAs This article is part of the Basics of Economics series brought to you by Behere Classes. (www.behereclasses.com) Tags: Best 11th commerce classes in Pune, 11th commerce class in Pune, Commerce classes in Pune city, 12th commerce classes in Pune, 12th commerce class in Pune, commerce classes near me, best commerce classes near me, CA foundation classes, CS foundation classes, best CA foundation classes, best CS foundation classes, CA classes in Pune, 11th 12th commerce classes near me, BBA coaching classes in Pune, BBA classes near me, BCom classes in Pune, BCom classes near me, BBA tuitions near me, BCom tuitions near me, commerce tuitions near me