ARCs in India are set up as a non-government vehicle
Minimal government participation in the ARC resolution process
Market forces to consolidate and attractively package lender interests
Create investors’ interest
Support from the banking system – an essential requirement
Fiscal Incentives to banking system
Tax set-offs on sale of asset to ARCs
Gains from buy-back of high yield government bonds to be used for set-off of losses from asset transfer to ARCs
Provision for operation of multiple ARCs
