Suggesting a review of the new Securitisation Act for tackling non-performing assets of banks and financial institutions, Federation of Indian Chambers of Commerce and Industry said on Tuesday that it was tilted in favour of the lenders and was against borrowers who were already reeling under pressures of high interests amidst threat of cheaper imports.

"There should also be a lenders' liability law with it," new FICCI chief A C Muthiah told PTI while cautioning that a
selective approach to resolve NPA was not proper.

Demanding spelling out of lenders' liability, Muthiah, whose industrial empire SPIC is among the list of defaulters
for which it has been served notice by FIs, said the Act should be reviewed for safeguarding interest of both borrowers
and lenders.

Stating that there was a difference between willful and genuine default, Muthiah sought some breathing space for the
industry, which had to compete globally and face high cost of power, infrastructure and funds cost.

He said financial institutions should restructure their debt bringing it down to 6.0 per cent on yeild on yeild basis.

"Banks and institutions should go for restructuring of the high cost loans in the current low interest regime, which
will be mutually beneficial for both," he said drawing a parallel with the Japanese economy where NPA was much higher
than India.

The FICCI president also asked the government to tighten its belt saying fiscal deficit was the singularly biggest challenge and yet the proposed Fiscal Responsibility Act was nowhere in sight.