Govt to continue talks with RBI on easing non-performing asset norms
A day after Reserve Bank of India (RBI) Deputy Governor N S Vishwanathan ruled out easing new norms for non-performing asset (NPA) resolution, the government doubled down on its stance that a strict application of these norms could send too many cases to the National Company Law Tribunal (NCLT) and clog the insolvency pipeline. Business Standard has learnt from senior government sources that the finance ministry will initiate a fresh round of communication with the RBI once Governor Urjit Patel returns to India.
Race for Essar Steel: NCLT directs lenders to review Arcelor, Numetal bids
In a major twist, the Ahmedabad Bench of the National Company Law Tribunal (NCLT) on Thursday asked the resolution professional (RP) and the committee of creditors (CoC) of Essar Steel to reconsider the first round of bids and review offers from ArcelorMittal and Numetal. The NCLT order rendered invalid the second round of bidding held on April 2. While Russia’s VTB-backed Numetal Mauritius and ArcelorMittal India were the only two bidders in the first round held on February 12, Vedanta, which had joined the race in the second round, will be out of the bidding process now.
ICICI board backs Chanda Kochhar, rejects demand for external audit
Amid the clamour over the conflict of interest allegations at ICICI Bank, its board has dug its heels in and defended chief executive Chanda Kochhar yet again, rejecting demands for an external audit to inspect whether correct processes were followed while giving loans to Videocon Industries. “Your information that ICICI Bank’s board is contemplating an external review is entirely speculative and baseless in nature,” ICICI Bank said in a response to ET’s question whether it has accepted demand for an external inquiry.
Govt allows re-auction of mining leases before expiry
To preempt crunch in supply of non-coal minerals when 288 merchant mining leases expire in April 2020, the government has amended the rules for mineral concession and development to pave way for re-auctioning of these leases even before their expiry. Early start of the auction process for these mines, containing minerals such as iron ore, manganese ore, bauxite and limestone, would ensure production is not disrupted for a long period. New leases would require about three-four years to be executed after all due clearances.
Government approaches RBI to relax NPA norms for MSMEs
The government has approached the Reserve Bank to relax norms for non-performing assets (NPAs) or bad loans in case of small and mid-sized businesses to help them tide over the cash crunch problem. he MSME ministry has sought an extension of the NPA classification period from the current 90-day window up to 180 days. “As far as the NPA norms of RBI are concerned, during that window, where that relaxation was given, efforts are being made to get it further extended,” Additional Secretary in the ministry of micro, small and medium enterprises (MSME), Ram Mohan Mishra told reporters here.
Mapping insolvency: UltraTech open to raising Binani Cement offer
UltraTech Cement has indicated it would increase its offer yet again for acquiring bankrupt Binani Cement if the Dalmia Bharat-led consortium matched its last offer. UltraTech Cement recently upped its offer to Rs 79.6 billion after a second round of revision, outbidding Dalmia Bharat’s offer by Rs 11 billion.While presenting his case before the Kolkata Bench of the National Company Law Tribunal (NCLT) on Thursday, Mukul Rohatgi, representing UltraTech Cement, said: “Ask Dalmia Bharat to increase its bid and match our offer.
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