EGoM fails to decide on ONGC, BHEL stake sale; to meet again

While the EGOM is slated to meet again to finalise the ONGC stake sale plan, heavy industries minister Praful Patel said that the BHEL disinvestment may happen in the next fiscal

New Delhi: With just one-and-half months left to meet the Rs40,000 crore disinvestment target for this fiscal, a panel of ministers today failed to take a decision on stake sale of blue chip oil major ONGC and engineering giant BHEL and decided to meet again to take a final call, reports PTI.

“(The government is) considering auction route for ONGC (disinvestment). No time line fixed as yet. Empowered Group of Ministers (EGoM) to meet again shortly”, petroleum and natural gas minister, S Jaipal Reddy, told reporters after the meeting of the EGoM here.

As regards BHEL, heavy industries and public enterprises minister Praful Patel said, “no decision on BHEL disinvestment...May happen next fiscal”.

The EGoM, which met under the chairmanship of finance minister Pranab Mukherjee, was slated to take a call on stake sale in the two major PSUs with a view to garnering about Rs14,500 crore in the current fiscal itself.

The government in the budget for 2011-12 had envisaged to raise Rs40,000 crore through PSU disinvestment, but in over 10 months it could mop up only Rs1,145 crore from stake sale in the Power Finance Corporation (PFC).

The target of Rs40,000 crore, according to disinvestment secretary Mohammad Haleem Khan, “is now almost impossible (to meet)”.

He further said that a final picture with regard to raising funds from disinvestment in the current fiscal would emerge after the next meeting of the EGoM.

The government is, however, hopeful that NBCC disinvestment might go ahead in the current fiscal, but that would only fetch Rs250 crore.

The government has been considering selling 5% government stake in ONGC to raise about Rs12,000 crore through the auction route.

It owns 74.14% stake in ONGC and proposed to offload 427.77 million shares or 5% equity.

In case of BHEL, the proposal is to offload 10% government stake in the state-owned company with a view to mopping up around Rs2,500 crore.

The auction route, which is being considered by the EGoM for stake sale, is aimed at allowing the government to complete the disinvestment process quickly and raise funds within the current fiscal which ends on 31st March.

The Securities and Exchange Board of India (SEBI) has already issued norms allowing promoters to sell stake by way of auction, through a separate window on the BSE and the NSE, which has to be completed within a day.

The share price of ONGC rose 1.78% to Rs280.90 during the mid-day trade on BSE, while BHEL shares were up 2.45% at Rs 271.45.


The mystery of AphroFin’s interest-free home loans in Tamil Nadu

Aphro Finance is neither a bank nor a financial institution, yet it claims to provide interest-free loans between Rs6 lakh and Rs33 lakh to women in Tamil Nadu to buy homes constructed by itself or its sister concern. What is the source of funding for AphroFin?

Anyone who want to take a home loan is little nervous about the prevailing interest rate which is over 10% due to the higher interest rate regime since past several months, courtesy, unabated inflation and rising policy rates. However, there is one company in Tamil Nadu that claims to provide interest-free home loans. Only catch is you need to buy a home built by its own sister concern.

Aphro Financial Services Pvt Ltd (AphroFin) and Aphro Micro Finance Pvt Ltd are the two companies based in Chennai. While not much information is available about these companies and the Aphro group of companies, the name of its director IP Yesudoss continues to be in focus. In fact, AphroFin’s website is full of Mr Yesudoss’ images and videos.

Here is what the company says: “The rules and regulations of many banks and finance companies are very severe. For example, the ways to get those loans are easily approachable by only educated people and not by illiterate and poor people. So these innocent people have to look for the help of others to get credit. Loan got after these system will be of high interest. Therefore within a few months people are not able to return the loan and they get more loans to repay and lose their happiness. Aphro was started to give a new dimension to these old systems. At this time of strong rules, regulations and high interest, Aphro started its office in the place where poor people live to support them with easy rules and less interest for the future welfare of them by giving business loans.”

Nothing wrong in providing loans to the needy. However, to do this on a large scale one needs to be super rich or a bank or financial institution. Unfortunately, AphroFin is none of them. It is just a broking agency-cum-builder. This is what is written by the agency on its site: “Aphro is a funding agency committed to the welfare of the people. Aphro was launched with the view to ensure the overall well–being of the people. We give loans to eligible people, under various schemes. Each scheme is designed to ensure 100% benefit to the borrowers…”

However, here is what it says about the loan under its terms and conditions...

“Your agreement with Aphro Finance does not constitute a guarantee of a loan as the lender grants the final approval and evidence may be required. We will act as your credit broker for the purpose of securing a loan or finance.”

When Moneylife contacted Aphro Trust (another unit or front of AphroFin), under the pretext of a loan seeker, one of the company’s managers said that the company doesn’t provide information over the phone. Information about loans and repayment is given when we visit the company personally. The company’s Hindi and English phone numbers are out of service. Also, the “Contact Us” section on the company’s website——doesn’t provide the location of the company. One has to fill in the details on the website.

Here is what the manager, said, “Loans are not provided for places outside Tamil Nadu. The company has just begun its operations. The company constructs buildings and give home loans for buying flats in those buildings only. We do not have any tie-up with any banks and the loans are provided by Aphro Trust.”

According to the information provided by an AphroFin representative, Aphro Trust is constructing buildings at about eight locations in Tamil Nadu and the buyer or loanee has to buy a flat in one of the buildings in order to avail the home loan. Aphro Trust has just started construction of the buildings and expects to complete them over next eight to 12 months.

AphroFin says: “Under this scheme Aphro builds and transfers Rs6,00,000 to Rs33,00,000. The scheme is operational across Tamil Nadu. It is enough if the loan taken is paid back and settled in instalments. The loan can be settled over a period of 15/20/25 years. Eligibility: 1) Anyone living in rented houses can apply 2) Allotment orders are given in three months and built-in homes are handed over in one year’s time.”

While there is no interest on loans offered for buying homes built by its own units, AphroFin, however, charges an administration fee for every application. The amount is not revealed. AphroFin also provides personal loans or business loans at an interest of 6% per annum, contrary to what every other lender in the country charges. This is surprising, especially when some banks are offering 6% to 7% interest on savings account while AphroFin if asking for just 6% interest on a loan!

Aphro Financial Services Pvt Ltd is registered with the ministry of corporate affairs with a CIN no. U65922TN2011PTC079076 and has shown its authorised capital as Rs5 lakh with Rs1 lakh as paid-up capital. This raises question about the source of funding of AphroFin and its units—Aphro Trust and Aphro Micro Finance. Similarly, while AphroFin maintained that it does not provide funding on its own and merely acts as funding agency or broker, it is revealed that the loans are provided by Aphro Trust.

Aprho Trust exists only on AphroFin’s website and few of its branches. There is no information available about the trust and whether it is genuine and properly registered anywhere. In addition, from where it is receiving the funds for distributing to women without any interest is a big mystery. Actually, this should have ringed loud alarm bells. But it has not. No one, including the police, administration and tax authorities are finding AphroFin’s business model strange and doubtful.

The reason? Last June year, Aphro Trust organised a function at Rajalakshmi Paradise Hall near Madavaram in Chennai to donate Rs5,000 each for 1,000 children belonging to its women members. And, according to information on AphroFin’s website, it was attended by P Sakthivel, joint commissioner of police (traffic), Chennai, Anthony Johnson Jayapal, commandant/ superintendent of police, small arms, Tamil Nadu along with several priests, educational officers and lawyers.



Trends Archive

1 month ago

Entire different home loans, it is necessary find to check some true facts from different home loan. The major important points of different when it comes to home loans are as kind of principal ( Interest rates ) ( Processing fee ) ( Loan to value Ratio ) However, you need to choose the loan in the entire package and not just focus on single elements. If a loan has a very low interest rate, Get More Information Apply 044-33044488 Best Bank Home Loans In Chennai.


5 years ago

sir i want home loan please help to us sir i'm doing jesus ministry it's my add

47c,iyyappan temple opp,mohanur road,namakkal-637001


5 years ago

please send details of loan lend by your trust and what will I do for getting loan



5 years ago

i want to housing loan


5 years ago

please sent deatils of housing loan lend by you


5 years ago

I want housing load what can i do


5 years ago

sir, iam namakkal dt. tiruchengode. i am working limited company. i have few land in my, any one loan schem in your side.


5 years ago

sir,pl motrgage home loan


5 years ago

sir, please home loan in aphro vazhayaga


5 years ago

I need home for your Aphro Trust around Tambaram.
I am staying in my mother"s house only.
pl.arrage & mail to me.


5 years ago

The business model need not be suspect, as the cost would also include the interest. They could actually have a back-to-back funding arrangement with a bank too.

a v moorthi besides TIHAR

5 years ago

February 1973 at Janakpuri, New Delhi. 3 room flats were getting occupied. a leading electrical shop owner from R.K.Puram (about 14 KMs from Janakpuri) offers to instal fans (usha, orient etc)at a monthly instalment (4 of Rs 50/-) first instalment to be paid during first week of March, whereas down payment Rs 160/-. Believe it or not nearly 1200 fans were sold out in just 3 days. Salary of most of the occupants was about Rs 1,000/- pm.No interest , ready possession , instalment starts later , well this is how hire purchase scheme worked. in Tamil Nadu in 70's VGP was a household name for hire purchase. Manufacturer gives 90 days credit, retailer sure about repayment , model was successful. So if the company factors the interest into instalments this is possible.

Mutual Fund assets rose 8% to Rs6.59 trillion by January end: Crisil

As a result of the uptick in the equity market, assets under equity funds surged by Rs184 billion or 11% to Rs1.80 trillion.

The Indian mutual fund industry's assets increased to Rs6.59 trillion in January 2012, registering an increase of Rs477 billion on a month-on-month basis.

According to Crisil Research, the 8% rise last month over December 2011 was on higher inflows in money market funds and mark-to- market gains in equity funds.

Money market funds witnessed inflows of Rs264 billion in January, taking the total assets under this category to Rs1.48 trillion compared with Rs1.21 trillion in December. Meanwhile, as a result of the uptick in the equity market, assets under equity funds surged by Rs184 billion or 11% to Rs1.80 trillion.

The equity market represented by the benchmark S&P CNX Nifty rose around 12% in January spurred by positive global and domestic cues, the first monthly gain for the market since October 2011. Gilt funds recorded highest inflows since September 2010 of over Rs5.21 billion in January, the second consecutive month of inflows.

"Sentiments for gilt funds have risen on views of peaking of interest rates and easing of monetary policy going forward. This is expected to benefit long-term debt funds including gilt funds," the report said.

Meanwhile, Income funds (including ultra short-term debt funds) saw outflows of Rs29 billion in January, the third consecutive month of outflows, primarily because, investors preferred "long-term debt avenues on views of peaking of interest rates in the domestic economy" the report said.

Fixed Maturity Plans (FMPs) continued to garner majority of the new fund offers (NFOs) during the month. In January, 49 FMPs were launched garnering Rs78.44 billion compared with three other NFOs launched, which in total garnered only Rs6.57 billion.

An analysis of month-on-month mutual fund flows and AUM distribution, shows that Money Market Funds, Gilt Funds and Gold ETF funds were the three categories which witnessed a net inflow of Rs264.29 billion, Rs5.21 billion and Rs0.82 billion respectively.

In January, income funds witnessed a net outflow of Rs29.26 billion, followed by equity funds which saw outflow of Rs3.80 billion and, balanced funds - Rs1.01 billion, Crisil said.


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