The Narendra Modi government expects to recover over 50 percent of the total debt from the sale of entities to repay lenders of the Infrastructure Leasing & Financial Services (IL&FS) Group.

According to a senior government official, “The government is confident of substantial recovery as the bidding process is going on track.” The beleaguered firm has an estimated debt of over Rs 94,000 crore.

Of Rs 94 000 crore, the government has made efforts which have resulted in turning Rs 18,000 crore in the green category, the official added.

On being asked, how will the government go-ahead on the recovery process, the official added, “The asset sale is on track. The bidding process will end on July 31 and the government will decide the future course of action after assessing the response of the bidding process."

The bidding process for IL&FS arms involving Rs 30,000 crore of debt will end on July 31. In case, the government does not get an encouraging response on certain specialised entities of IL&FS, including the education arms or the waste to energy arms, in that case, the government would opt for ‘Swiss Challenge Method’, the official said.

As part of the resolution plan, the group companies, based on their financial position, have been classified into three categories – green, amber and red. The board of IL&FS Group is running the company to ensure settlement after it was superseded by the government-appointed new board in October.