Companies & Sectors
NBHC partners with L&T Finance for collateral management

L&T Finance's tie up with NBHC will provide a great fillip to warehouse receipt financing and will enable the farmers to get better prices for their agricultural produce by avoiding distress sell


Mumbai: National Bulk Handling Corp Ltd (NBHC), an integrated agri-commodity and collateral management company said it signed a memorandum of understanding (MoU) with L&T Finance Ltd (LTF) to work together in the area of collateral management, reports PTI.
 
The agreement was signed by GC Rangan - COO, LTF and Anil Choudhary, Managing Director & CEO, NBHC.
 
NBHC is associated with 38 leading banks and financial institutions for collateral management. Through this network, it has facilitated funding and benefited over 150,000 small and medium farmers by way of warehouse receipt financing (WRF).
 
Till date, it has helped banks and financial institutions disburse over Rs26,000 crore funding through its collateral management support and services to banks, thereby benefiting borrowers across the ecosystem, a company statement said here.
 
NBHC has been providing a platform for farmers and the entire commodity value chain to reduce losses and wastages and gain benefits of market opportunity. With its pan-India presence and robust business processes and efforts, it has enabled post-harvest funding to over 150,000 farmers.
 
"The tie-up with L&T Finance will further augment NBHC's underlying mission of facilitating post-harvest credit between banks and farmers in rural India as well to all its depositors and business associates in the ecosystem," NBHC managing director and CEO Anil K Choudhary said.
 
NBHC's network of over 900 locations across 19 states that are under collateral management and professional warehousing and L&T Finance's spectrum of financial products and services for trade, industry and agriculture, will be highly beneficial to the sector, Choudhary said.
 
Commenting on the tie-up, Dinanath Dubhashi, Chief Executive, L&T Finance stated, "LTF is already serving to a large rural customer base and recently, we have started our rural enterprise finance vertical, which includes commodity finance, among other businesses." 
 
This tie up with NBHC will provide a great fillip to warehouse receipt financing and will enable the farmers to get better prices for their agricultural produce by avoiding distress sell. Given the demonstrated track record of NBHC, the partnership will enable L&T Finance to mitigate credit risk for its commodity finance product offerings, Dubhashi said.

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Twisting of the forest laws to cover up Jindal’s irregularities in Orissa?

EAS Sarma, former secretary to the Government of India, in his letter to the prime minister said political clout of an individual (Jindal) cannot and should not be allowed to cover up criminality of this kind


EAS Sarma, former secretary to the Government of India, has called for an independent investigation in to the alleged manipulation of laws by Jindal Steel and Power (Jindal) in Orissa.

 

Citing a newspaper report, Mr Sarma, in a letter written to prime minister Dr Manmohan Singh, said it shows how the ministry of environment & forests (MoEF) twisted environment laws to accommodate a blatant irregularity committed by Jindal, a company that is perhaps promoted by the family of the Congress MP, Navin Jindal.

 

“...the action taken by MoEF, then headed by Jairam Ramesh, was clearly a coloured one, aimed at ‘regularising’ an offence committed by Jindal in Orissa in violation of the forest laws as well as the Environment (Protection) Act, 1986. Not only MoEF had committed an impropriety of a serious nature but the ministry had also set a bad and unethical precedent that was against the public interest,” the former secretary said.

 

He added, “Apparently, Mr Ramesh was not alone in this impropriety. His ministry must have been pressurised by the Prime Minister’s Office (PMO) which seems to be omnipresent these days in the scandals that permeate the government, whether it is POSCO, Vedanta, Coalgate, 2G Spectrum, S-Band spectrum, and so on.”

 

Incidentally, this is not the first time that the MoEF had manipulated the laws and notifications to accommodate the interests of the private companies. “When the ministry found that the draft Wetland Rules notified at its website came in the way of clearing two private power projects in Srikakulam district in Andhra Pradesh, the MoEF surreptitiously withdrew the draft temporarily to overcome the legal hurdles. I registered my complaint before the ministry at that time but the private companies’ hold over the ministry was far too strong for me to succeed,” Mr Sarma alleged in the letter.

 

Mr Sarma, who also was secretary in the power and finance ministries, asked the prime minister to carry out an independent investigation into the incident of manipulation of the laws to suit the Jindal company. “Incidentally, the same group is involved in other projects elsewhere in the country in which serious human rights violations have taken place. The political clout of an individual cannot and should not be allowed to cover up criminality of this kind,” he said in his letter.

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COMMENTS

hari dang

5 years ago

Good for you.....and us all..........that you have finally got to what we discussed twenty years ago ! Balanced exploitation and sensible conservation of our BioDiversity, Water, Forest, Natural Resources and the Environment and EQUITABLE yet rapid and 'necessary' Sustainable Development, DEMAND, and have needed for Decades, INTEGRITY at Central and State Government Levels and at the Administrative Steel Frame Levels.........I mentioned to you that we needed you [and a thousand, ten thousand, others like you !] to overcome THE EVIL EMPIRE of cant, humbug, Hypocrisy, Sychophancy and 'loot'........even good Indians [and Jairam Ramesh was one of the BEST ! Like nearly 50,000 OTHER beneficiaries of THE EVIL EMPIRE !] are forced/tempted to BECOME EVIL in this 65-Year-decline of what was the finest personal and human 'character-peoples'..........BUT, the generations I taught, and others who grew up with just a whiff [[[NOT ALL were Brother[s] Morrissey/Pinto/Fitzpatrick/et al]], the ambiance of integrity in our Conventing and Jesuit intellect was enough to make a nbew GENERAYTION which WILL transform India !..........NOT the GOP ! or others of their ilk..........Regards, Hari Dang

ashok sen

5 years ago

Is it possible for Moneylife to take this case further, to its rightful conclsion,though i understand that you are not an institute, or body for such tasks.

ashok sen

ashok sen

5 years ago

why is it that when learned people like Mr. Sarma inform the authorities of blatant misuse of powers by politicians,no action is taken
A) to rectify the situation, immaterial of the cost to the dishonest businessman
B)no politician,who are not above the law, are sent to prison?

Do the people of this country have no recourse,and are helpless to rectify the situation.

ashok sen

A Kumar

5 years ago

The unfortunate part of such acts is that it is the Investors who are the ultimate sufferers. Such illegal activities on behalf of promoters create minefields in companies.Due to any adverse situation, it blows up in investors face causing large losses in portfolios. There are examples galore. The Lavasa imbroglio led to Hind constructions price falling by 60%, The Sesa Goa illegal mining scam had a similar impact.
While the role of the Governemnts and Ministries is what it is, I am more concerned at the role of the boards of the companies and the Corporate Governance, particularly when they are listed.
Wise investors are increasingly looing at Corporate governance and are categorizing managements carefully so that their portfolios do not implode due to such sudden events.

MK Gupta

5 years ago

What was Mr. Sarma doing while in service?

REPLY

Sucheta Dalal

In Reply to MK Gupta 5 years ago

Mr Gupta
Cynicism is good, but it is also useful to have some background.
Mr Sarma did a lot while he was in service. And he is among the rarest of rare IAS officers who quit while at the top, because he didnt want to be pushed around by the government. He has also not sought any government assignment as a post-retirement sinecure.
Thoughtless comments can be very hurtful for persons who are doing an incredible amount to help society, that too at their own risk and cost.

Dayananda Kamath k

In Reply to Sucheta Dalal 5 years ago

would u take pains to publish my open appeal to chief justice of india. if taken note of by the people and the supreme court it will change the way the politician as well as beaurocrates function. it is only tip of iceberg. if proper investigation is done so many big scams will come up from the material underneath in my audit reports.

Gujarat Pipavav Port raises Rs350 crore via private placement

Both the QIP and the preferential issues were done at Rs58.45 per share and the funds would be used for repayment of Gujarat Pipavav Port's existing loans

 

Mumbai: Gujarat Pipavav Port on Monday said it raised Rs350 crore through a qualified institutional placement (QIP) of shares and preferential issue to its promoter APM Terminals, reports PTI.

The infusion will be used for repayment of the existing loans which will enable it to tie up funds for its Rs1,097-crore expansion, the company said in a statement.

It raised Rs199.48 crore through a QIP of 3.41 crore shares to a clutch of investors like Bajaj Life Insurance, SBI Life Insurance, Franklin Templeton, Kotak Mahindra, Vanguard International Explorer Fund, Schroder Asia Pacific Fund, Jardine Fleming, the statement said.

Apart from that, 2.58 crore shares were issued to the promoter to raise Rs152.52 crore, it added.

Both the QIP and the preferential issues were done at Rs58.45 per share, which was trading 1.1% up at Rs56.20 apiece on the BSE at 1355 hrs versus the 30-share Sensex's 0.05% slip.

Promoter APM Terminals' shareholding in the company will continue to be maintained at 43.01% after the capital raising, it said.

The company is undertaking a capital expenditure of Rs1,097 crore to increase capacity at the port and enhance operational efficiencies.

"We propose to increase capacity for container cargo to around 1.5 million TEUs and for bulk cargo to around 10 million tonne," its managing director Prakash Tulsiani was quoted as saying.

The plans include constructing a new container berth of 348 metres to provide contiguous berth of 735 metres which will help it handle two post-Panamax vessels simultaneously, dredging, three new cranes, increasing yard capacity, it said.

On the bulk cargo side, it will be constructing a new container berth which will enable the port to dedicate the existing multi-purpose berth exclusively for bulk cargo services and extending the berth by 110 metres, the statement added.

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