Latest news with #DSRA
Time of India
21-05-2025
- Business
- Time of India
Infra bonds set to raise funds for RRTS, Noida airport connectivity projects
Noida: The formidable job of building connectivity for the upcoming with it, will raise Rs 10,000 crore through to finance key connectivity projects The funds will support a 72km rapid rail line from Ghaziabad to Jewar–an offshoot of the Delhi-Meerut , a rail link between Chola and Rundhi connecting the eastern and western freight corridors and other designed to seamlessly integrate the region with Delhi, Gurgaon, and other adjoining regions. Tired of too many ads? go ad free now An estimated Rs 23,000 crore is needed for the projects. YEIDA plans to foot the remaining Rs 13,000 crore on its own. CEO Arun Vir Singh said YEIDA received a BBB+ rating for its infra bonds. "This gives us the green light to go ahead with our fundraising efforts. The aim is to raise Rs 10,000 crore with a 10-year bond. The entire amount will be used for connectivity projects linked to the airport," he said. The credit rating scale typically runs from 'AAA'—the highest—to 'D', which signals default. A BBB+ rating places YEIDA in the 'moderate safety' zone, which gives confidence to many institutional investors. The better the rating, the lower the interest rate one can attract on bonds. Infrastructure bonds are debt instruments issued by govts or agencies to raise capital specifically for public infrastructure projects. Similar models are already in use by industrial authorities in Hyderabad and Pune. To advance the plan, YEIDA has reached out to 12 govt-empanelled transaction advisors. "We have written to all eligible transaction advisors. Interested firms will present their proposals by the end of this month, and we will select one to guide us through the bond issuance process," Singh added. YEIDA's push for infrastructure funding comes on the back of several financial commitments. UP govt has extended an interest-free loan of Rs 3,000 crore for land acquisition, and a separate funding arrangement has been signed with HUDCO. However, officials emphasise that much more capital is needed, especially with the international airport driving a surge in multi-modal transport demands. These include new routes to link the area with major national railway lines, high-speed rail, metro networks, and personal rapid transit systems. YEIDA already has over Rs 1,000 crore in reserve and has set up a dedicated debt service reserve account (DSRA), where six months' worth of interest payments are kept in advance to ensure timely servicing of debt.
News18
23-04-2025
- Business
- News18
Gensol Engineering Under EoW Scanner After PFC Flags Loan Irregularities
PFC has lodged a formal complaint with the Economic Offences Wing (EoW) of the Delhi Police against Gensol Engineering Ltd Power Finance Corporation Ltd (PFC), a government-owned Non-Banking Financial Company (NBFC), has lodged a formal complaint with the Economic Offences Wing (EoW) of the Delhi Police against Gensol Engineering Ltd, alleging submission of falsified documents. In a statement issued on April 22, PFC said, 'A complaint has been filed with the Economic Offences Wing concerning the issuance of falsified documents. PFC remains committed to protecting its interests and ensuring full loan recovery, while maintaining transparency in all its operations." The company added that an internal investigation is also underway under its anti-fraud policy. PFC clarified that it did not issue any letters to credit rating agencies CARE Ratings and ICRA, refuting claims reportedly made by Gensol. The controversy emerged when the agencies began verifying letters that allegedly originated from PFC and the Indian Renewable Energy Development Agency Ltd (IREDA), which claimed Gensol was regular in its debt servicing. These letters, later found to be forged, were used to misrepresent the company's creditworthiness. This latest development marks the fourth ongoing investigation into Gensol and its affiliate, BluSmart Mobility. The company is already under scrutiny by the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA), and the Enforcement Directorate (ED) is also expected to initiate a probe into possible money laundering. According to PFC, it sanctioned a Rs 633 crore loan to Gensol Engineering in January 2023 as part of the government's push for electric vehicle (EV) adoption through schemes like FAME and PM E-bus Sewa. Of this, Rs 587 crore was earmarked for procuring 5,000 electric four-wheelers for lease to BluSmart Mobility, while Rs 46 crore was allocated for acquiring 1,000 electric three-wheelers for cargo operations—a portion of the loan that was never availed. So far, Rs 352 crore has been disbursed by PFC for the procurement of 3,000 EVs, with 2,741 of those vehicles delivered and hypothecated to PFC, as verified by third-party agencies. PFC also said it is evaluating all recovery options for the outstanding Rs 307 crore. The company noted that Gensol remained compliant with its repayment obligations until January 31, 2025. However, in the fourth quarter of FY25, PFC was forced to invoke the Debt Service Reserve Account (DSRA) to cover missed payments for February and March. The lender has further secured its interests through pledged equity shares and non-convertible debentures (NCDs), corporate guarantees from Gensol Ventures Pvt Ltd, personal guarantees from promoters, and liquid assets including TRA and DRA balances, as well as fixed deposits from BluSmart, marked with a lien in PFC's favor. Earlier this year, SEBI issued an interim order against Gensol Engineering and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi, citing alleged fund diversion. Shares of Gensol Engineering fell 5% on April 22 and have plunged 86% year-to-date in 2025. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. First Published:
Time of India
22-04-2025
- Business
- Time of India
Power Finance Corporation files plaint with EOW over 'document fraud'
Power Finance Corporation has filed a complaint with the Economic Offences Wing concerning the alleged issuance of falsified documents by Gensol Engineering on delays in debt servicing. CARE Ratings and ICRA had downgraded the company's long-term loans to default following "ongoing delays in servicing of term loan obligations" along with pending over dues and special mention account (SMA') classification of the loan. "Regarding communications from credit rating agencies CARE and ICRA on the falsified documents, PFC clarified that it did not issue the letters they referred to," the lender said in a statement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She lives in the Loneliest house in the World - Don't judge until you see the inside! Tips and Tricks Undo PFC is pursuing further actions in the case and exploring all possible options. "Considering these red flags, the matter is under investigation internally in PFC under PFC's Anti-Fraud Policy," the company said. Live Events The non-banking financial company had sanctioned ₹ 633 crore to Gensol Engineering in January 2023. The funding was earmarked to buy 6,000 electric vehicles (EVs), of which, ₹587crore was for 5,000 four-wheelers for lease to BluSmart Mobility's ride-hailing service. The rest was to procure 1,000 electric three-wheelers for cargo operations. However, the three-wheeler loan was not availed, the company said. Out of the loan sanctioned for four-wheeler vehicles, PFC disbursed ₹352 crore to Gensol for the leasing of 3,000 EVs to BluSmart Mobility. The lender said that as on date, 2,741 vehicles were delivered and hypothecated to PFC confirmed by third-party agencies. Additionally, PFC also has Gensol Engineering's pledged equity shares and non-convertible debentures, a corporate guarantee from Gensol Ventures Private Ltd, besides personal guarantees from the promoters. Apart from the guarantees, liquid assets in the form of trust retention account (TRA) balances, debt service reserve account (DSRA) balances, and fixed deposit by BluSmart with a lien marked to PFC are in place, the lender said. Repayments on the disbursed amount had started with ₹45 crore repaid, leaving a principal outstanding of Rs 307 crore as of April 18. Until January 31, Gensol was servicing its dues regularly. In the last quarter of the financial year, PFC invoked the Debt Service Reserve Account to clear February and March dues.
Yahoo
20-02-2025
- Business
- Yahoo
Bill to restore retirement benefits for Delphi retirees reintroduced in Congress
Legislation to restore the retirement benefits of some 20,000 Delphi salaried employees has been reintroduced to the U.S. Senate after failing to gain any traction in years past. U.S. Rep. Mike Turner, R-Ohio, and U.S. Reps. Marcy Kaptur; D-Ohio, Claudia Tenney, R- New York; and Gwen Moore, D-Wisconsin; reintroduced the Susan Muffley Act of 2025 last week. The legislation seeks to restore pensions for over 20,000 Delphi salaried retirees, including thousands in Indiana. When General Motors filed for bankruptcy during the Great Recession, the U.S. Pension Benefit Guarantee Corporation assumed responsibility for the terminated benefits but could not pay an individual more than a statutory maximum benefit. Therefore, retirees experienced losses to their benefits. 'I have remained steadfast in my fight to restore the pensions of Delphi Salaried Retirees,' Turner said in a statement. 'While this has been a long time coming, the strong bipartisan support gives us hope that we can finally right this wrong for those who lost their pensions.' Under the bill, retirees would receive a lump sum payment covering the pension benefits they should have received over the past 15 years, with 6% interest added to account for the delay. Moving forward, the legislation would fully restore their pensions, ensuring retirees receive the payments they were originally promised, as if the disruption had never occurred. For over a decade, the Delphi salaried retirees have been fighting to restore their benefits. In September 2009, the Delphi Salaried Retirees Association filed a lawsuit against the PBGC to restore their pension benefits. After losing decisions at lower courts, the DSRA petitioned to take their case to the U.S. Supreme Court, which declined to hear the case in January 2022. Congressional action is now the only option for restoring their pensions. The bill was introduced last year and passed the House, and it received support from then-President Joe Biden, but was not heard or voted on by the U.S. Senate or included in the year-end omnibus spending bill in the Senate, and thus died. The legislation is named after Susan Muffley, the late wife of Russiaville resident Dave Muffley. Susan Muffley was part of the DSRA's core leadership in the effort to restore their pensions. Dave worked at Delphi as an electronics technician for 31 years, but lost the full value of his pension in 2009. Despite health problems, Susan avoided seeing her doctor given her family's financial constraints due to losing their pension. She was ultimately diagnosed with pancreatic cancer and died Aug. 9, 2012. The legislation was introduced last year but never made it out of committee in either chambers.
