Report, made on the instruction of agriculture minister, is being studied by the government; wine producers’ association is optimistic about implementation
The wine industry in Maharashtra which is reeling under debt, is hopeful of receiving a bailout from the government, following the recommendation of a Rs100-crore restructuring package by the National Bank for Agriculture and Rural Development (NABARD).
NABARD has made its report on the directions of Union agriculture minister Sharad Pawar and Subodh Kant Sahay, who was then minister for food processing, in the context of the liquidity crunch facing the wine industry.
Several meetings were held between NABARD officials and state-level bank committees to assess the situation, and the report focuses on the financial requirements of the industry. The All India Wine Producers' Association (AIWPA) is optimistic that the proposed recommendations will be implemented.
An official source said, "The draft report addressing the restructuring package for the wine industry in Maharashtra has been submitted to the government of India."
Jagdish Holkar, president, AIWPA, told Moneylife, "We have received the draft report prepared by NABARD on the wine industry in Maharashtra. It is a draft report and everything is under consideration. The proposals mainly address the measures for the sustainability and stability of the industry. Accordingly, our association along with NABARD had asked for a Rs100-crore package of interest subvention at 4% and debt restructuring of the small-size wineries and grape growers. This has been considered in the draft report."
The association is optimistic over the implementation of proposals made by NABARD. "The wine industry is a forward linkage to agricultural production and prevailing high interest rates are unaffordable for us. Earlier, due to unpaid loans, banks were not ready to provide us fresh loans, but with these recommendations we are hopeful of further loan assistance," Mr Holkar said.
As per the draft report, working capital loans, term loans, working demand loans and grape growers' loan dues would be part of the interest subvention plan.
Mr Holkar also told Moneylife that "the state chief minister has spoken to the association and he has assured us that after studying the report the role of state and centre will be decided."
When contacted for his response over the expected assistance from the government, Subhash Arora, a wine expert who also runs the Indian Wine Academy, said, "Any help from any one to the Maharashtra wine industry is always welcome. But it should be a one-off thing and not be taken time and again."
According to the RBI, customers will get alerts on their e-mails for all transactions done through their debit or credit cards from 30 June 2011. The move is aimed at checking fraudulent transactions and encouraging usage of cards by customers
Mumbai: Customers will get alerts on their e-mails for all transactions done through their debit or credit cards from 30 June 2011. The guidelines issued to the lenders by the Reserve Bank of India (RBI) are aimed at checking fraudulent transactions and encouraging usage of cards by customers, reports PTI.
Presently, only some banks are intimating their customers through SMS and e-mail about transactions done on their debit and credit cards.
"It is decided that banks make take steps to put in place a system of online alerts for all types of transactions, irrespective of the amount, involving usage of cards at various channels," the RBI said.
This measure is expected to encourage further usage of cards at various delivery channels. Banks may implement this measure latest by 30 June 2011, it added.
RBI's initiative comes amid incidents of fraudulent withdrawals at ATMs. It is important to arrest the incidents of frauds in order to further encourage card based transactions in the country.
At present, banks are required to alert customers on transactions above Rs5,000 using card numbers or while making online payments.
International Paper will buy 53.5% of APPM from parent LN Bangur group for $257 million in cash and make a public offer for an additional 21.5% of APPM’s shares for $104 million. It has also agreed to a $62 million non-compete payment to the sellers, taking the deal’s potential value to $423 million
New York: US-based International Paper (IP) will buy a key stake in India's Andhra Pradesh Paper Mills (APPM) for up to $423 million as it seeks a foothold in the booming Indian economy, reports PTI.
IP said that it would buy 53.5% of APPM from parent LN Bangur group for $257 million in cash and make a public offer for an additional 21.5% of APPM's shares for $104 million.
In addition, it has agreed to a $62 million non-compete payment to the sellers, taking the deal's potential value to $423 million.
"Once completed, the transaction will position International Paper as the first global paper and packaging company with a significant position in India's fast-growing economy," the Memphis, Tennessee-based company said in a statement.
John Faraci, chairman and chief executive of International Paper, said that APPM is "an excellent platform" for IP to expand in the Indian market.
"Both APPM and the India paper and packaging industry are growing at substantial rates, and we believe that IP's global operations and technical expertise can accelerate that growth and create value for customers as well as IP and APPM shareholders," Mr Faraci said in the statement.
APPM is a leading integrated paper manufacturer in India. Its existing management team and 2,500 employees will continue to operate the business, the statement said.
LN Bangur, executive chairman of the Bangur Group, said that IP brings a different set of resources and capabilities needed for the unit's next phase of growth.
"International Paper is the right company to take the business forward and deepen maturity of the sector in India," he said.
Shares of APPM surged by 19.99% to hit the upper limit on the Bombay Stock Exchange at Rs236.15 today after the company announced that the US-based International Paper would buy a majority stake in the Indian firm.
A similar movement was witnessed on the National Stock Exchange, with the counter hitting the upper circuit at Rs 236.95, up 20.01% from its previous close.