Is my Sponge unit eligible for restructuring?

Eligibility rests on viability — a TEV report has to establish that projected DSCR >= 1.2x over the restructured tenor. Willingness of promoters to bring equity infusion is a major positive factor.

What is the standstill on asset classification during restructuring?

Under the RBI Prudential Framework, the standstill window is 180 days from Review Period start. If ICA is signed inside 180 days, standard classification is preserved (subject to the additional 20% + 15% provisioning by lenders).

Can a single-lender exposure be restructured?

Yes — the RBI framework applies to single-lender and multi-lender exposures. For single-lender, no ICA is needed; the lender's Credit Committee approval governs.

Which lenders in Chhattisgarh are most flexible on restructuring?

Historically State Bank of India and Bank of Baroda have supported viable MSME restructuring under the RBI framework, especially where sector-specific policy (RBI's MSME resolution circulars) allows.

How is DRT Raipur's docket?

Moderate — disposal is typically faster than metro DRTs, with interim orders in 3–4 months.

Are sponge-iron OTS proposals common?

Yes — post commodity down-cycles, banks accept restructuring or OTS with milestone payments tied to price recovery.

Is CSIDC NOC required after SARFAESI auction?

Yes — industrial plots at Sirgitti, Urla and Siltara require CSIDC transfer approval before mutation.

Does the Chhattisgarh HC entertain SARFAESI writs?

Yes for jurisdictional/procedural defects; substantive disputes are pushed to DRT.

Chhattisgarh • Commercial negotiation

Loan Restructuring in Chhattisgarh

Restructuring proposals under the RBI June 2019 Prudential Framework — for viable Chhattisgarh businesses seeking to reset tenor, moratorium, working-capital cycle or interest rate before the account slips to NPA / Doubtful.

Viability memo — TEV assessment, cash-flow projections, debt-service coverage.

Restructuring proposal under the RBI Prudential Framework — signed inter-creditor agreement (ICA) where multiple lenders are involved.

Working-capital reassessment — CC / OD limits reset, drawing power recomputed.

Board-note drafting for the lender's Credit Committee / SARB.

Post-implementation monitoring — quarterly compliance certificates for 12 months.

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Written by

Sharad Wardhan

MD, NPA Experts

CA, ex-Deputy Vice President (Banking)

Legally reviewed by

NPA Experts Legal Review Panel

Empanelled counsel practising before DRT, DRAT and High Courts

Last updated

June 3, 2026

Editorial policy

This page is for general information. It is not legal, tax or investment advice. Every NPA / SARFAESI / DRT matter is fact-specific — speak to a qualified advisor before acting.

Chhattisgarh

Everything a Chhattisgarh borrower needs to know about Loan Restructuring

When restructuring beats OTS in Chhattisgarh

Restructuring is the right path when the business is viable but cash-flow is temporarily stressed — typical for Sponge iron & steel (Raipur-Bhilai belt) and Coal-linked logistics (Korba) units in Chhattisgarh. OTS is right where viability is broken and the choice is between settlement discount and continued default interest.

The RBI June 2019 Prudential Framework — the operating law

The 7 June 2019 RBI framework replaced legacy schemes (CDR, SDR, S4A, JLF) with a lender-driven Inter-Creditor Agreement (ICA) approach. Key trigger: any account in default is reviewable inside 30 days; a Review Period of 180 days follows, within which the ICA restructuring is finalised. Failure triggers additional 20% + 15% provisioning by lenders — a strong incentive to close inside 180 days.

TEV — the report that drives the sanction

A Techno-Economic Viability (TEV) report from a Category-I RBI-empanelled agency is mandatory for exposures above ₹100 Cr and industry-standard for exposures above ₹25 Cr. The TEV report drives the tenor, moratorium and coupon proposed to lenders. In Chhattisgarh, TEV is a common bottleneck — plan the agency selection and site visit at the start of the 180-day window.

Working-capital reset — the Sponge playbook

For Sponge iron & steel (Raipur-Bhilai belt) units, the working-capital reset typically involves: (a) reassessment of MPBF/Turnover Method limits, (b) reset of drawing power basis stock/book-debt margin, (c) release of ad-hoc limits into regular sanction. Under the current RBI framework, working-capital reassessment can be part of the ICA restructuring without triggering standstill on standard classification.

Local intelligence

Courts, lenders and hubs relevant to Chhattisgarh

Court structure

Chhattisgarh High Court

Writ jurisdiction seat.

DRT Raipur

DRT Raipur is the single DRT for Chhattisgarh.

Primary lenders

• State Bank of India
• Bank of Baroda
• Central Bank of India
• HDFC Bank
• Chhattisgarh Rajya Gramin Bank

Banking hubs

• Raipur
• Bilaspur
• Durg-Bhilai
• Korba

Stressed sectors

Sponge iron & steel (Raipur-Bhilai belt); Coal-linked logistics (Korba); Rice mills; Real estate (Raipur)

Auction / procedural note. CSIDC transfer NOC is required for industrial-plot auctions; expect 30–45 days after sale certificate.

FAQ

Loan Restructuring — Chhattisgarh FAQs

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