By March 2014, the total investment by all the shareholders in the NBFC will be Rs200 crore and out of that Jain Irrigation's contribution would be about half
New Delhi: Jain Irrigation Systems along with other partners will invest Rs100 crore to roll out a new non banking financial company (NBFC) soon for providing loans to farmers, said a PTI report quoting a top official from the company.
Last week, Jain irrigation had announced it has got RBI's permission to start a NBFC 'Sustainable Agro-commercial Finance Ltd (SAFL)'.
The company had said the new NBFC would be formed in a joint venture with promoter entities and International Finance Corporation (IFC).
"In the next few months, we will together invest Rs100 crore in SAFL for the disbursal of farmer loans," Jain Irrigation Managing Director Anil Jain told PTI.
He said by March 2014, the total investment by all the shareholders in the NBFC will be Rs200 crore and out of that Jain Irrigation's contribution would be about half.
Jain Irrigation will have up to 49% stake in the JV, he added.
When asked whether the NBFC will rope in more partners, Jain said that "discussions are on with banks including foreign banks and financial institutions".
Jain Irrigation plans to launch its NBFC post monsoon from Maharashtra where 40 offices would be opened by the end of this year. The target is to have a pan India presence in the next 3-4 years through a network of around 150 offices.
The NBFC will offer products like agri project financing, contract farming, small business loans, solar pumps and appliances financing and third party tie-ups.
The Jalgaon-based company manufactures drip and sprinkler irrigation systems, besides agro-processed products like dehydrated vegetables and fruits.
The Cabinet is likely to take up a proposal to recast about Rs2 lakh crore debt of the power distribution companies, whose precarious financials have raised concerns of default in the banking system
Mumbai: Corporate debt restructuring (CDR), which has already seen a five-fold jump in the first quarter of current fiscal, is set to break new records as the Centre is planning to recommend Rs2 lakh crore debt of state power utilities to the CDR cell, reports PTI.
In the just concluded quarter, the banking sector has seen the quantum of restructured loans rising over five-fold to Rs20,040 crore, up from Rs4,950 crore in the year ago period, sources at the CDR cell said.
According to the Union Power Ministry, the Cabinet is likely to take up a proposal to recast about Rs2 lakh crore debt of the power distribution companies, whose precarious financials have raised concerns of default in the banking system.
This comes over and above the Rs30,000 crore CDR that five state-run discoms of Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab and Haryana had availed last fiscal.
A senior official of a city-based state-run bank expressed surprise at the move saying, "Any more CDRs will have serious repercussions on the banking system as it comes on the back of an already historic rise in CDR cases due to deepening slowdown in the economy."
Though he admitted that all CDR cases do not end up in losses for banks, as the historical average of CDRs turning up as losses is only 4-5% and 18-20% of them become non-performing assets (NPAs), he said the sheer rise in the CDR proposals is itself disconcerting.
"The rising number of NPAs and CDRs can impact our ratings, which are already under strain," an official of another state-run lender pointed out.
However, the country's largest lender State Bank of India Chairman Pratip Chaudhuri had last week defended the CDR mechanism as "a welcome platform" where the bankers can take a collective call to recover their money at a later date.
Siemens VAI Metals Technologies would set up the de-gassing plant at Jailaxmi Casting’s facility at Aurangabad that would be able to process around 1.1 lakh tonne of liquid steel every year
Mumbai: Germany-based Siemens has received an order to supply a 35 tonne vacuum de-gassing plant to Jailaxmi Casting and Alloys at its unit in Aurangabad, reports PTI.
No financial details were provided.
The contract has been awarded to the group's subsidiary Siemens VAI Metals Technologies for setting up the plant, which is expected to be commissioned by 2012-end, a company release said.
The new de-gassing plant will be able to process around 1.1 lakh tonne of liquid steel every year, it said.
"Siemens will design and supply the entire mechanical and electrical equipment for the vacuum de-gassing plant. This includes the vacuum tank, cover structure, including a simplified lifting device for the shop crane, the gas cooler and vacuum filter. The plant will be driven by a mechanical vacuum pump," the release said.
Jailaxmi Casting and Alloys, which runs a mini mill melt shop in Aurangabad, has been producing special and alloy billets and bars for the automotive industry and the regional construction industry.
"With the new vacuum de-gassing plant, Jailaxmi Casting and Alloys will further improve the quality of its crude steel in order to continue to reliably fulfil its customers' continually rising quality requirements," it said.