logo
Tanker lorries linked to BPCL's Ennore terminal on strike

Tanker lorries linked to BPCL's Ennore terminal on strike

The Hindu24-05-2025

Tankers carrying fuel to retail outlets belonging to Bharat Petroleum Corporation Ltd (BPCL) are on strike demanding that a new transport tender be withdrawn. Around 150 tankers carrying petrol, diesel, lubricants and aviation fuel supplying from the company's Ennore terminal have halted services starting Saturday.
This has led disruption of supplies in a section of small-sized fuel retail outlets in several locations, said oil industry sources. 'There is a partial dry-out of bunks. Though outlets that own tankers are helping those that do not have vehicles, it is not enough. From tomorrow, the tanker owners say that they will not allow bunk-owned tankers to help others,' said a retailer.
E. Moorthy, president, Chennai Asanur, Petroleum Tanker Lorry Association, said that they were on partial strike on Thursday and Friday demanding that either the existing transport tender rates be continued or increase rates in the new tender. 'We had been badly hit during Covid-19 and also when the company's terminal was shifted from Tondiarpet to Ennore. Business has not been bad only during the last two years,' he said.
Association general secretary K. Velu said that the company was mobilizing tankers from Asanur. 'We have requested their support too. They will not ply to Chennai. If the issue is not resolved by Monday, we will stop operating tanker lorries to all the three oil companies. Around 700 tanker lorries are affiliated to our association,' he said.
A. Nasar, joint secretary of the association, said that aviation fuel supplies that have been partially stopped would be altogether halted from Tuesday if the company does not form a committee to fix transport rates. 'The rates in this new tender floated during September last year are 15% lesser than the current rates. All of us are in deep debt and a reduction in rates would mean a death knell for the industry,' he added.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

RBI as lender of last resort: A lifeline for NBFCs in crisis
RBI as lender of last resort: A lifeline for NBFCs in crisis

Time of India

time2 hours ago

  • Time of India

RBI as lender of last resort: A lifeline for NBFCs in crisis

Sunil Kanoria is a Kolkata-based Indian businessman with over 35 years of experience in the infrastructure sector including infrastructure leasing & finance. He had the distinction of serving ASSOCHAM, India's oldest and leading chamber of commerce, as President and has served as Member of the Infrastructure Sector in the 10th Five Year Plan of the Planning Commission of the Government of India. He also served as a Council Member of the Institute of Chartered Accountants of India, nominated by the Government of India. He is the former President of The Agri-Horticultural Society of India. Sunil has been engaged in policy advocacy on matters related to economy. Sunil is a visionary who correctly assessed the Indian economy's infrastructure needs at the beginning of his career and anticipated the imminent role of the private sector in infrastructure creation. With foresight and a knack for taking calculated risks, Sunil converted several pioneering ideas into business reality within the infrastructure domain, many of which were first-of-its kind in India. Focusing on spirituality, Kanoria Foundation has organized confluences with a conglomeration of major issues on Humanity, Power (inner & outer) and Spirituality at Work. Kanoria Foundation organized World Confluences since 2009 which was also attended by former Presidents of India, Late Dr APJ Abdul Kalam and Late Shri Pranab Mukherjee respectively, among other distinguished luminaries from all walks of life globally. LESS ... MORE The Reserve Bank of India (RBI) is reportedly set to redefine its role by preparing to act as a lender of last resort for non-banking financial companies (NBFCs), mutual funds, and microfinance institutions during severe liquidity crises. As reported by the press last week, this move aims to ensure the survival of these entities when they are excluded from lending markets during crises. Given their deep ties to the banking system through borrowings and investments, this step is vital for financial stability. The RBI's economic capital framework (ECF) committee recently raised the contingency risk buffer (CRB) band, indicating readiness to intervene in crises. While post-pandemic asset purchases focused on public assets, the RBI is now considering private asset purchases in future crises. This policy shift acknowledges that NBFCs and other regulated entities are as critical to financial stability as banks. Over the past two decades, the RBI has tightened NBFC oversight, aligning it with banking regulations. Extending the lender-of-last-resort function to these institutions is a logical next step. However, this initiative is overdue. Past crises have exposed NBFCs' vulnerabilities. For example, during the 2018 liquidity crunch, infrastructure finance companies faced a severe asset-liability mismatch, worsened by the RBI's COVID-19 moratorium guidelines in 2020. While borrowers received relief, NBFCs were pressured by creditors, leading to bankruptcy proceedings. Timely liquidity support could have averted such outcomes, stabilizing similar institutions and reducing risks to the financial sector. Globally, central banks have long supported non-bank institutions during crises. In the United States, the Federal Reserve has been instrumental in stabilizing NBFCs and mutual funds. During the 2008 financial crisis, the Fed's Commercial Paper Funding Facility (CPFF) provided liquidity to money market mutual funds and other non-bank entities facing funding shortages. In 2020, the Money Market Mutual Fund Liquidity Facility (MMLF) enabled institutions to purchase assets from money market funds, preventing a collapse in short-term funding markets. These actions highlight the critical role central banks play in supporting non-bank entities to maintain financial stability. In Europe, the European Central Bank (ECB) has similarly supported NBFCs during crises. In 2020, the ECB expanded asset purchase programs and offered targeted longer-term refinancing operations (TLTROs) to indirectly ensure liquidity for non-bank institutions through banks. The Bank of England's COVID Corporate Financing Facility (CCFF) also supported large non-bank firms by purchasing commercial paper, ensuring operational continuity during market disruptions. These global examples demonstrate the effectiveness of central banks extending their lender-of-last-resort function beyond banks. The RBI's proposed framework aligns India with these global practices. By acting as a lender of last resort, the RBI can prevent systemic shocks from liquidity freezes in NBFCs or mutual funds. Their interconnectedness with banks means their failure could trigger a domino effect, threatening the financial ecosystem. Past crises affecting infrastructure finance companies underscore the consequences of inaction. Had this mechanism been in place earlier, significant disruptions might have been avoided. Yet, the RBI must proceed cautiously. Extending this role requires clear guidelines to prevent moral hazard, where NBFCs might take excessive risks expecting bailouts. The RBI should establish strict eligibility criteria and robust oversight to ensure only well- managed institutions facing temporary liquidity issues receive support. It must also balance interventions to avoid crowding out private market solutions, which could stifle innovation and competition. The RBI's move to become a lender of last resort for NBFCs, mutual funds, and microfinance institutions is a forward-thinking step. It addresses a critical gap in India's financial safety net, aligning with practices of global central banks like the Federal Reserve and ECB. While commendable, its success depends on precise implementation to ensure stability without encouraging reckless behaviour. Had this framework been introduced earlier, the financial sector might have been spared some amount of distress. The RBI's proactive stance promises a more resilient financial system for India. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.

RBI rate cut to spur Kolkata housing demand by 5-10pc: CREDAI
RBI rate cut to spur Kolkata housing demand by 5-10pc: CREDAI

The Print

time3 hours ago

  • The Print

RBI rate cut to spur Kolkata housing demand by 5-10pc: CREDAI

'In FY2024-25, Kolkata saw the sale of around 17,389 residential units, marking a 16 per cent rise year-on-year,' he said. 'The lower interest rate regime would make home loans cheaper, driving up demand by at least 5 to 10 per cent in the coming months,' Sushil Mohta, CREDAI West Bengal President, told PTI. Kolkata, Jun 6 (PTI) The Reserve Bank of India's decision to cut the repo rate by 50 basis points to 5.5 per cent, along with a 100 basis points reduction in the cash reserve ratio (CRR), is set to boost housing demand in Kolkata's residential property market by 5-10 per cent, particularly in the affordable segment, real estate developers said on Friday. The stock of unsold affordable homes in the city dropped to 12,783 units in March 2025 from 16,069 units a year ago, reflecting sustained buyer interest despite relatively stable prices. 'Kolkata is largely an affordable housing market, and the rate cut will make home ownership more accessible while easing borrowing costs for developers. The CRR cut will further improve liquidity for both homebuyers and builders,' Mohta who is also Chairman of the Merlin Group added. Despite a moderate 10 per cent increase in residential prices over the past two years—lower than Bengaluru (29 per cent), NCR (20 per cent) and Mumbai (13.5 per cent)—Kolkata's price points are expected to remain steady going forward, given limited profit margins in the segment. Mahesh Agarwal, Managing Director of Purti Realty, echoed similar sentiments. 'The RBI's policy decision will sharply reduce borrowing costs and make credit more affordable. We expect demand to rise across all segments—affordable, mid-income and luxury. Lower EMIs will improve access to homeownership and spur greater participation in the real estate market,' he said. According to developers, the RBI's move comes at a crucial time when buyer sentiment is gradually strengthening, and the city's property market, while conservative in pricing, is poised for higher transaction volumes in the new financial year. Industry players believe that the rate cut signals renewed confidence in the broader economy and is likely to have a ripple effect on construction activity, employment generation, and allied sectors in Kolkata. Real estate's contribution to the state's GDP and employment is significant, which is why the state government had extended fiscal and policy incentives to boost sales during the COVID-19 pandemic. PTI BSM NN This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

Lucknow-Kanpur rapid rail clears final hurdle, promises sub-hour commute
Lucknow-Kanpur rapid rail clears final hurdle, promises sub-hour commute

Hindustan Times

time4 hours ago

  • Hindustan Times

Lucknow-Kanpur rapid rail clears final hurdle, promises sub-hour commute

Now that Lucknow Development Authority has approved the proposed rapid rail corridor between Lucknow and Kanpur, decks have been cleared for the project to move into the implementation phase. The corridor, dubbed 'NaMo Corridor', will enable high-speed trains to operate at 160 km per hour, bringing down the travel time between the two cities to just 40 to 50 minutes. National Capital Region Transport Corporation (NCRTC) had proposed the rapid rail in 2015, but the progress was hampered by multiple delays, including disruptions during the Covid-19 pandemic. Authorities in Kanpur and Unnao had already granted necessary clearances to the project. With LDA issuing its no-objection certificate (NOC) on Wednesday, the project has crossed its final administrative hurdle. The project will mirror the ongoing Delhi-Meerut RRTS, which is already in advanced stages of development. High-speed trains, smart ticketing, automatic train doors, and advanced safety systems are expected to be the standard on the Lucknow-Kanpur line as well. Additionally, the development will follow a transit-oriented approach, ensuring that stations act as hubs for commercial and residential growth. 'LDA has approved the project under the condition that it aligns with Lucknow's master plan. The work is expected to be completed within five years,' said Prathamesh Kumar, vice-chairman, LDA. With the NOC now in place, NCRTC is expected to finalise the detailed project report (DPR), followed by tendering, land acquisition, and the beginning of the construction work. If completed on schedule, the Lucknow-Kanpur rapid rail would become Uttar Pradesh's first regional rapid transit system. All-weather op, impetus to infra The proposed route will start from the Amausi airport in Lucknow and pass through Bani, Unnao, Jaitipur, Ajgain, and Magarwara before reaching Ganga Barrage in Kanpur. Plans include its integration with the metro systems in both Lucknow and Kanpur. Designed to operate in foggy, rainy, and adverse weather conditions, the rapid rail will be equipped with state-of-the-art systems. Officials say that the service will not be affected by seasonal disruptions, a key factor in a region known for winter fog and erratic monsoons. Apart from improving intercity travel, the corridor is expected to provide a major boost to regional infrastructure, particularly in Unnao, where warehousing zones and industrial hubs are being planned along the route. The alignment also supports planned residential zones closer to Kanpur's outskirts, opening new opportunities for housing and real estate development.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store