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Indian government examines outright sale of IL&FS - ET Now, citing news agency sources

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Indian government examines outright sale of IL&FS - ET Now, citing news agency sources

Indian government examines outright sale of IL&FS - ET Now, citing news agency sources
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Francis Mascarenhas(Reuters)
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MUMBAI (Reuters) - The Indian government is examining a complete sale of debt-laden Infrastructure Leasing and Financial Service Ltd (IL&FS), as one of the options to solve the crisis at the beleaguered firm, television channel ET Now reported, citing news agency sources.

A major Indian infrastructure financing and development company, IL&FS roiled the nation's financial markets in recent weeks when it defaulted on payments to banks, and ratings agencies downgraded its loans to junk from investment grade.

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Its troubles stoked fears of a bigger malaise in India's shadow banking sector.

The new board at IL&FS, which was chosen by the government and appointed by a court-led process at the start of October, is expected to present its resolution plan to a company law tribunal on Wednesday, ET Now said citing the agency sources.

IL&FS declined to comment.

State-owned firms led by Life Insurance Corp of India own nearly 40 percent of the company.

(Reporting by Promit Mukherjee; Edited by Martin Howell)

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