Double home loan cap to Rs10 lakh: RBI to urban co-op banks

In order to promote housing for low income groups in major cities, the RBI asked urban cooperative banks to double the limit for home loans to Rs10 lakh

Mumbai: In a bid to promote housing for low income groups in major cities, Reserve Bank directed urban cooperative banks to double the limit for home loans to Rs10 lakh for consideration under priority sector lending, reports PTI.

As per the norms, assistance given to a non-governmental agency approved by the NHB (National Housing Bank) for refinance for construction or reconstruction of dwelling units or for slum clearance and rehabilitation of slum dwellers, subject to a ceiling of loan component of Rs5 lakh is classified as priority sector lending.

At present, RBI has hiked the ceiling to Rs10 lakh.

“Pursuant to the announcements made by the Union Finance Minister (in) the Budget Speech for the year 2012-13, it has been decided to increase the above limit from Rs5 lakh to Rs10 lakh,” RBI said in a circular.

RBI has already issued similar instructions to commercial banks and also regional rural banks.

Banks have to provide 40% of the total credit to the prescribed priority sectors including housing for weaker section.

Loans of such nature fall under indirect finance to housing sector as the final disbursement is done through NHB approved non-governmental agencies.


Essar Oil signs pact with L&T for bitumen supply

Essar Oil will supply 15,000 tons of bitumen to L&T for building roads in Gujarat

New Delhi: Essar Oil on Monday said it has signed an agreement with engineering and construction company Larsen & Toubro (L&T) for supply of high quality bitumen, reports PTI.

As per the memorandum of understanding, Essar Oil would supply high quality bitumen from its Vadinar oil refinery in Gujarat to roads L&T is building in the state.

"The initial supply agreement is for a quantity of 15,000 tons over the course of the project and is likely to be extended to other projects in and around the state," the company said in statement.

Essar Oil (EOL) will provide supplies for the Kandla, Mundra and the Samakhaiyali, Gandhidham road Projects in Gujarat. "This cooperation will soon be extended to projects like the Kishangarh, Udaipur, Ahmedabad Road Project, among others," it said.

EOL has existing relationship with L&T under which it supplied about 60,000 tons of high quality bitumen over the last 18 months for L&T's various road projects.

"Essar Oil is fully geared to meet the supply for increased demand of high quality bitumen for road construction," said S Thangapandian, CEO, Marketing, EOL.

L&T currently has more than 15 road projects under various stages of construction or operations across states like Gujarat, Maharashtra, Tamil Nadu, Karnataka, Haryana, Andhra Pradesh and Rajasthan.

Essar Oil has the capacity to produce over 700,000 tons of bitumen per annum, the statement added.


L&T Construction gets Rs744 crore contracts in first quarter

Larsen & Toubro Construction received contracts worth Rs744 crore during the first quarter, from NMDC, Jindal Power and NTPC

New Delhi: Engineering company Larsen & Toubro Construction on Monday said it received contracts worth Rs744 crore during the first quarter of current financial year (2012-13), reports PTI.

L&T Construction has received new orders valued Rs744 crore during the first quarter of 2012-2013, a statement said, adding that they include orders for power transmission and distribution.

The Power Transmission & Distribution secured new orders worth Rs479 crore from key customers which include orders for electrical, instrumentation and automation works from National Mineral Development Corporation (NMDC), Jindal Power Ltd and NTPC.

An order has been secured from Power Grid Corp for the construction of overhead transmission lines from Barh in Bihar to Gorakhpur in Uttar Pradesh.

In the Water & Solar Business, L&T Construction has secured orders worth Rs265 crore from various customers for the construction of a Solar thermal plant at Rajasthan and also an EPC contract for the construction of a pumping station and allied works at Botad Branch Canal from Paliyad to Goma in Bhavnagar district, Gujarat.


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