Happy Media

TS Ramakrishnan/Aditya Malhotra  | Updated on January 31, 2020 As the growth in oil demand is set to decline, divestment should be done over the next two years to maximise returns The strategic disinvestment of Bharat Petroleum Corporation Ltd (BPCL) was announced in November 2019. As there is not enough time this fiscal year, it would probably be carried out in FY 2020-21. Some have raised concerns about the government not meeting the targeted disinvestment for FY 2019-20, stating that if the government is not ready to slip on the fiscal deficit of 3.3 per cent of GDP, it could dent government spending and, thereby, not stimulate consumption growth. When a party forms the government after electioneering, the financial year is shortened to almost six months as the next Budget is to be presented by February 1. Thus, the government failing to achieve its disinvestment target in FY 2019-20 cannot be faulted. However, FY 2020-21 is a different ball game. The government’...

The Telegraph October 10,2019 By PTI in New Delhi The government claimed an additional $175 million as its profit share after the cost disallowance in 2016. In a setback to the oil ministry, the Supreme Court has dismissed its petition against an order seeking disclosure of documents that formed the basis for the levy of $3 billion penalty on Reliance Industries over KG-D6 natural gas output not matching targets. A three-member international arbitration panel, hearing Reliance and its partner’s challenge to the government levying penalty because of unutilised capacity due to production not matching targets, had asked the ministry to share the documents that formed the basis for its actions. The oil ministry first challenged the disclosure before the Delhi High Court, which on December 18, 2018 dismissed the petition. It then challenged it in the Supreme Court, which on August 5, 2019 dismissed it saying it was “not inclined to interfere” with the earlier order. The governm...

By Joel Rebello, Updated: Feb 22, 2019 Government-owned State Bank of India and Punjab National Bank have agreed to provide Rs 500 crore emergency funding for Jet Airways, subject to others in the consortium of lenders not objecting, said people with knowledge of the matter. This money will allow the airline to continue operations until the lenders determine the best way of restructuring the company’s debt of more than Rs 8,000 crore.  “Only SBI and PNB have agreed to step in and provide the loans,” said a person with direct knowledge of the matter. “None of the other lenders are willing to lend more.” The fresh debt is proposed to be ranked at higher seniority, which means it will be given first preference in the event of loan recovery, this person said.  RESOLUTION PLAN  “Since it will be treated on a higher pedestal on the debt waterfall, it needs an okay from other lenders,” the person added.  SBI and PNB didn’t respond to queries. Jet Air...

Saurabh Sinha, Feb 18, 2019 Restructured Jet Airways will effectively be 51% government fund and PSU banks-owned. Sources say SBI-led lenders will convert Rs 600 crore loan into equity at Re 1, which will take their stake to 32%. National Investment and Infrastructure Fund (NIIF), an investor-owned fund manager anchored by the government of India, will pick up 19.5% and invest Rs 1,400 crore, they add. Collectively, this will mean 51.5% control with PSU banks and NIIF.  It is learnt Abu Dhabi-based Etihad, which currently has 24% stake in Jet, will invest another Rs 1400 crore, limiting its stake at 24.9% and avoiding an open offer. Etihad is expected to pick up the additional equity at Rs 150 per share. Incidentally, the Abu Dhabi Investment Authority is one of the investors in NIIF, which was set up for building infrastructure but is now bailing out the airline. Jet's remaining debt of Rs 6,000 crore will be restructured and converted into long term 10-year debt.  ...

The Wire BY   ROHINI SINGH   ON   08/02/2018 While other corporate players dominate the news, it is the promoter of a little known firm, Swan Energy, who is truly experiencing ‘Achche Din’ as public sector firms line up to do business with him. One of the most influential businessmen in Modi’s India is someone you’ve never heard of. Search for Nikhil V. Merchant on the internet and you would be hard pressed to find a single photograph or profile or interview or even a quote of the 50-something entrepreneur whose proximity to Narendra Modi is an open secret in the upper echelons of the Bharatiya Janata Party and its government in Delhi. So crucial is this anonymity to Merchant – and those he works with – that  The Wire ‘s attempts to write about his dealings with energy PSUs triggered a flurry of ‘friendly’ calls and messages from top politicians and captains of industry suggesting he wasn’t worth the effort. Yet their efforts only seemed to confirm his im...