Companies & Sectors
L&T Construction wins orders worth Rs2,044 crore in Q2 so far

L&T's construction unit has won several orders worth Rs2,044 crore till date from July 2012

Mumbai: Engineering major Larsen & Toubro (L&T) on Tuesday said that its subsidiary L&T Construction has secured orders worth Rs2,044 crore across various segments in the second quarter so far, reports PTI.

 

L&T Construction's infrastructure arm bagged an order worth Rs781 crore from NTPC Hydro for constructing the 171 mw Lata Tapovan hydroelectric project in Uttarakhand, which will be executed on an EPC (engineering, procurement and construction) basis, the company said.

 

The company's infrastructure unit bagged another contract worth Rs645 crore from GMR Infrastructure to construct a significant stretch of the Kishangarh-Udaipur-Ahmedabad highway.

 

The project is part of phase V of the National Highway Development Programme (NHDP) of the National Highway Authority, it said.

 

The company's buildings and factories arm secured an order worth Rs360 crore for development of residential towers, which involves construction of 23 multi-storeyed towers.

 

In its power transmission and distribution business, L&T Construction has won an order worth Rs258 crore in the UAE for supply and installation of 220/33 kv grid station and related 220 kv cabling and overhead lines work, the release said.

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Hike prices to save oil companies, says CRISIL

According to the ratings agency it is absolutely crucial that prices of regulated fuels be raised by at least 10-15% immediately and gradually be linked to international prices

Mumbai: Alarmed by the record losses reported by oil marketing majors, ratings agency CRISIL on Tuesday said there is an urgent need to increase prices of regulated diesel, kerosene and cooking gas, which will also help government finances, reports PTI.

 

"Given the crippling under-recoveries of oil marketing companies (OMCs) and a fast deteriorating fiscal situation, a hike in prices of regulated fuels, especially diesel, which accounts for 60% of under-recoveries is essential and inevitable," the agency's research wing said in a note.

 

"It is absolutely crucial that prices of regulated fuels be raised by at least 10-15% immediately and gradually be linked to international prices," it added.

 

It said the three state-run oil marketing majors IOC, BPCL and HPCL have reported a combined loss of Rs40,500 crore, primarily driven by under-recoveries and the absence of government compensation. IOC early this month had reported the nation's highest ever quarterly loss over Rs22,000 crore during the first quarter of FY13.

 

Diesel prices were revised last in June 2011, and with the coming effect of crude prices moving north and a currency depreciation, the under recoveries of OMCs have touched a record high of Rs47,800 crore during the June quarter, it said.

 

In 2011-12, the under-recoveries had jumped by 77% to Rs1.38 lakh crore and will be higher this fiscal as well, CRISIL said.

 

Because of the apparent lack of political will to increase the prices, OMCs are currently facing a loss of Rs14 per litre on diesel, Rs29 on kerosene and Rs250 on every cooking gas cylinder, it said.

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Finance Ministry wants PSU banks to phase out unsecured short-term loans

Short term loans create pressure on the PSBs and there is a need to reduce this pressure by strengthening the process of sanction of such loans, the Ministry says

New Delhi: The Indian government has asked the public sector banks (PSBs) to phase out all short-term loans without collaterals by January end saying these lending create pressure on balance sheets of banks, reports PTI.

 

"All such loans shall either be phased out in the next six months time or collateral security will be created," a Finance Ministry communication to heads of all PSBs said.

 

The PSBs have also been asked to frame a policy for sanctioning short term unsecured loans.

 

It further said in future, any sanctions without security should have the approval of their Boards as "most of these loans are unsecured and therefore create pressure on PSBs for keeping such account standard".

 

The Finance Ministry, said in case any such loans have become non-performing assets (NPAs), details of the cases should be provided to it.

 

The directive applies to loans which are being extended without any security and are of short term in nature.

 

Since short term loans create pressure on the PSBs, the ministry felt there is a need to reduce this pressure by strengthening the process of sanction of such loans, the communication issued last month said.

 

The instructions to PSBs comes at a time when NPAs in the state-owned banks are rising due to slowdown in economic activities.

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