So far no corporate bad pay masters were punished. No corporate head died of suicide because of bad debts. So far after formation of Telangana State more than fifty farmers died of suicides, just because of bad loans and agrarian crisis. Telangana Government wants to take the burden of farm loans on its head. It amounts to about 19000 crores.
Government assures to take the responsibility of reshceduling burden. But RBI is raising all the wrong bells to stall the farm loan waiver. RBI is not willing to believe a state Government, but when it come to rescheduling or restructering of loans to corporates its readily coming forward to fecilitate to any extent.
Farm loan waiver benefits and saves nearly 40 lakh farmers, where as corporate restructuring or onetime settlement or rescheduling will help only one company, few partners.
You assume that there is no crisis in Andhra and Telangana. But you must not hide back whats happening in corporate sector. Why such bias against farmers? Sofar only Andhra Corporates evaded more than 6200 crores to the banks. Banks filed suits to recover loans. But one can understand the destiny of these cases. Not only that the bad debts of 3500 corporates reached to a no return levels. IMF warned the RBI about this debt fiasco.
Here I am giving few news stories regarding bad debts:
Did government bail out L Rajagopal, the ‘pepper-spray MP’?
All India | Sreenivasan Jain (with inputs from Niha Masih) | Updated: February 18, 2014 09:41 IST
New Delhi: For his extreme act, of using pepper spray inside Parliament, Lagadapati Rajagopal has drawn sharp criticism from his Congress party. He was also among the six MPs expelled by the party for moving a no-confidence motion against Prime Minister Manmohan Singh over the Telangana proposal.
But now, Mr Rajagopal faces allegations that the same UPA regime has helped his debt-ridden business empire.
His LANCO group, which he runs with his brother, with interests in power, roadways and mining, is over Rs. 36,000 crore in debt. But recently, one of its arms, LANCO Infratech, which has a debt of Rs. 7,500 crore has been given a Rs. 2,500 crore bailout package by a group of banks. The firm will also receive a two-year interest free holiday, and will have to only invest about Rs. 150 crore from its own pocket.
The group of lenders is made up of public sector banks like Andhra Bank, Punjab National Bank and Punjab & Sind Bank, leading to charges that Mr Rajagopal’s political clout was used to push through a highly generous bailout.
The MP has denied this, saying the banks reschedule loans for everybody, not just for LANCO. He also said that his brother runs the business, not him, and that there were no undue favours shown.
But it’s not just that. Mr Rajagopal is accused of annexing land belonging to the Waqf board for his 100-acres Lanco Hills luxury township in Hyderabad.
The court has allowed him to sell flats in Lanco towers till the dispute is settled, but to his critics, the project explains his anti-Telangana stance.
“So all of these top-notch industrialists who have now metamorphosed into the Members of Parliament and representatives of people, they actually are more in public life to protect their business interests and less the public interests… the lesser priorities are public interests,” KT Rao of the Telangana Rashtra Samithi or TRS said.
But Mr Rajagopal says the land belonged to the government, which was also given to the Indian School of Business, the Urdu Academy and Infosys. He also says the Waqf claim was forged.
As Parliament braces for another stormy week over Telangana, the questions being raised: are the extreme tactics of Andhra Pradesh’s politicians-cum-businessmen like Mr Rajagopal, because of public interest or self-interest?
For NDTV Updates,
Lanco Infra Close to Sign Debt Restructuring Deal
Move will allow the debt-stricken developer to reschedule repayment of.7,500 crore of loans
MITUL THAKKAR NEW DELHI
Lanco Infratech is in the process of signing one of Indias largest corporate debt-restructuring deals that will allow the debt-stricken infrastructure developer to reschedule repayment of as much as.7,500 crore of loans and give it access to new credit of.3,500 crore.On Friday,Lanco Infratech and a consortium of over 25 lenders led by IDBI Bank,met in Gurgaon to work out the finer details of the debt-restructuring deal.By late afternoon,a majority of its lenders agreed to sign the agreement,while others are expected to come on board after seeking approval for the final deal from their respective managements soon,Amardeep Jaiswal,Lanco Infratechs head for legal affairs,said without divulging the terms of the deal.
A company executive with knowledge of the matter said the lender consortium,that includes Dena Bank and Punjab National Bank,will forgo a little over.400 crore of interest due from Lanco Infratech.Of the new credit,.2,500 crore will be priority loans and the rest for working capital,the executive said.As part of the plan,Lanco Infratechs promoters will hive off their stakes in some projects and companies and bring in fresh funds of about.500 crore,this executive said.According to reports,the Hyderabad-based company has already put its Budhil hydroelectric project on the block and is in talks with Sanjiv Goenka-led CESC to sell this asset.It is also scouting for investors for its solar power projects,industry sources said.An IDBI Bank executive didnt immediately comment on the debt recast.The deal reflects lenders confidence in the company promoters, Jaiswal told ET.Jaiswal,who worked closely with the lenders on the deal,said the company will repay all sundry debts at the earliest and come back on track to execute its ongoing projects.
At group level,Lancos debt burden is estimated to be close to.37,500 crore,which remains a matter of concern for its promoters and investors.Besides struggling to pay lenders,the cash-strapped Lanco Infratech also faced difficulties in paying employees on time.Lanco Infratechs gross revenue declined 30% from a year earlier to.5,449 crore in the latest six-month period ended on September 30,while its loss at the same time more than doubled to.1,159 crore.After the company announced approval from the authorities for its debt recast,its share price and trade volumes are on the rise.The Lanco Group has about 4,800 employees and has interests in power,renewable energy,mining,engineering,procurement and construction and real estate.In its recent communication to shareholders,Lanco Infratech stated that its assets were not generating envisaged revenue because of various factors beyond the control of the company,such as a short-supply of coal gas that affected power production,pending tariff clarity and delayed payments from customers.This has posed challenges to cash flow,it said.
LANCO AND A consortium of over 25 lenders led by IDBI Bank,met to work out the finer details of the debtrestructuring deal AS PART OF THE PLAN Lanco Infras promoters will hive off their stakes in some projects and cos and bring in fresh funds of about.500 cr AT GROUP LEVEL,Lancos debt is estimated to be close to.37,500 crore,which remains a matter of concern for its promoters