Latest news with #LetterofComfort
Time of India
15-05-2025
- Business
- Time of India
HCL-Foxconn to have multiplier effect on electronics manufacturing: Minister
New Delhi/Noida: Union Cabinet on Wednesday approved a Rs 3,706 crore semiconductor plant in UP's Jewar to be set up by an HCL-Foxconn joint venture. It will manufacture for mobile phones, laptops, and semiconductor facility, the country's sixth, will be located on a 48-acre plot in Sector 28 under YEIDA and is expected to create employment for 2,000 people. Tired of too many ads? go ad free now It will have a design output capacity is 36 million units per month."Once this unit is set up, the display panel plant will also come to India. This will meet 40% of the country's capacity and also meet Foxconn's requirements for rest of the world," IT & electronics minister Ashwini Vaishnaw said, adding that the joint venture will become operational in land has been allotted to Vama Sundari Investments (Delhi) Private Limited (VSIPL), a major promoter company of the HCL Group, which holds a 44.17% stake in HCL Technologies."Already five semiconductor units are in advanced stages of construction. With this sixth unit, Bharat moves forward in its journey to develop the strategically vital semiconductor industry. This plant will manufacture display driver chips for mobile phones, laptops, automobiles, PCs, and a myriad of other devices that have displays. The plant is designed for 20,000 wafers per month," govt is the country's biggest manufacturer of electronic products, including having factories for producing Apple's iPhone."Semiconductors are basic components. It will have a multiplier effect on the entire electronics manufacturing in the country," Vaishnaw CEO Arun Vir Singh said the project reflects UP's push to attract investments in high-tech industries like semiconductor manufacturing. The plant will produce compound semiconductors, silicon photonics, sensor fabrication, discrete semiconductors, and also carry out assembly, testing, marking, and packaging (ATMP), as well as outsourced semiconductor assembly and test (OSAT).These technologies are critical for the development of next-generation electronics and are expected to contribute to the growth of sectors such as mobile phones, laptops, medical equipment, defence hardware, and power support the project, the Uttar Pradesh govt issued a Letter of Comfort to VSIPL last year, outlining a range of financial and non-financial incentives. As per the commitment, the company will receive a capital subsidy of Rs 919 crore, a land rebate worth Rs 124 crore, and exemption of Rs 1.1 crore in stamp duty and registration addition to this, the project will benefit from a 10-year waiver on electricity duty, support for a dual power grid system, and subsidies on water and electricity usage. While the state govt will fund one of the power grids, the company will build the the need for skilled professionals in the sector, the state will also fund upskilling has been considerable success in development of after the central govt had come up with a Rs 76,000 crore incentive package in December 2021. Under the plan, govt had extended fiscal support of up to 50% of a project's cost to eligible display and semiconductor which had previously failed to get any credible proposals for semiconductor manufacturing after trying for decades, had finally managed to score big when American Micron emerged as the first major player to enter the space with a Rs 22,500 crore testing and packaging unit in Gujarat in June 2023. This was followed up with approval to three proposals worth Rs 1.26 lakh crore in February 2024. These are: Rs 91,000 crore project of Tata Electronics Pvt Ltd to set up India's first semiconductor fab unit with Taiwanese Powerchip Semiconductor Manufacturing Corp at Dholera in Gujarat; Rs 27,000 crore Semiconductor Assembly and Test (TSAT) unit by Tata in Morigaon, Assam; and Rs 7,600 crore project of CG Power with Japanese Renesas Electronics and Stars Microelectronics of Thailand.
Express Tribune
14-05-2025
- Business
- Express Tribune
ECC extends Rs50b loan guarantee
Listen to article The Petroleum Division has informed the Economic Coordination Committee (ECC) that the financial position of its companies has improved and they now have sufficient stocks to retire the debt. The ministry shared the information with the economic decision-making body in a recent meeting while discussing the loan guarantees for Sui Northern Gas Pipelines Limited (SNGPL) for liquefied natural gas (LNG) payments. The Petroleum Division said that cash flows of energy management companies had shown a considerable improvement and sufficient funds would be available to retire the debt. The ECC directed the division to share projections of the SNGPL cash flow with them. It sought the projections in order to retire Rs50 billion worth of bank loans acquired for re-gasified LNG (RLNG) payments. In a recent meeting, the ECC noted that short-term borrowing was made from commercial banks to meet financing needs, despite the fact that sufficient cash flow had been anticipated. It expressed concern that the case had been submitted a year after the expiry of financing. It was explained that SNGPL would be able to pay off the amount in one year. The Petroleum Division pointed out that the ECC while considering a summary submitted on March 14, 2023 had approved that the Finance Division would provide a sovereign guarantee along with the Letter of Comfort in favour of SNGPL for commercial borrowing of Rs50 billion on an immediate basis. Pursuant to the ECC's decision, the Finance Division issued the sovereign guarantee on July 4, 2023 in favour of Allied Bank Limited (ABL), Faysal Bank Limited (FBL) and the National Bank of Pakistan (NBP) amounting to Rs20 billion, Rs20 billion and Rs10 billion respectively against the running financing facilities obtained by SNGPL on account of RLNG payments to Pakistan State Oil (PSO) and Pakistan LNG Limited. The tenor of the financing facilities was one year, which expired on April 12, 2024. Currently, SNGPL is facing a liquidity crunch due to a huge circular debt, subsidies to the export/fertiliser sector, RLNG diversion to the domestic sector and financing costs. Thus, it was not in a position to repay the loans to banks and requested an extension in the validity period of guarantees by one year. The Finance Division conveyed that the Petroleum division had submitted a summary to the ECC, seeking approval for the extension in the sovereign guarantee. Additionally, SNGPL may be advised to apprise the forum of the plan that envisages the servicing and retirement of the guaranteed facility for FY 2024-25. In response to the Finance Division's letter, SNGPL said that its ability to repay the facility was compromised due to the circular debt. SNGPL submitted the following position for the repayment of the loan and the settlement of circular debt by the government. It proposed the conversion of the running finance facility into a long-term loan with a period of 5-10 years. The Petroleum Division further briefed the meeting that the instant matter was not a new case for the allocation of government guarantee; rather it was an extension in the validity period of the already issued guarantees. The summary was circulated to the Finance Division for comments. The Finance Division endorsed the proposal for a one-year extension in the validity period of the already issued sovereign guarantee amounting to Rs50 billion in favour of SNGPL. The Finance Division also stated that the extension would be construed as a new financing facility and the Petroleum Division may direct SNGPL to ensure strict compliance with the financing guidelines on the issuance of sovereign guarantees, dated February 3, 2020, while renewing the financing facilities for another year, after its approval. The Petroleum Division proposed that the ECC may consider approving the extension of the validity period for one year, with effect from April 13, 2024, enabling SNGPL to remain afloat in payment obligations to LNG suppliers as well as to avoid any threat to LNG supply. The ECC considered the summary regarding "Extension in Validity Period of Sovereign Guarantees issued against Running Finance/Musharakah Facility of Rs50 billion obtained from Allied Bank Limited, Faysal Bank Limited and National Bank of Pakistan for RLNG Payments" and approved the extension in the validity period up to June 2026, with the stipulation that it shall be a new facility and that the Petroleum Division shall comply with the guidelines of the Finance Division regarding issuance of sovereign guarantee.
Mint
13-05-2025
- Business
- Mint
Zee Entertainment share price jumps as Arbitral Tribunal rejects Aditya Birla Finance's ₹134 crore claim
Zee Entertainment Enterprises (ZEEL) on Tuesday said the Arbitral Tribunal has rejected all claims filed by Aditya Birla Finance Ltd (ABFL) in a ₹ 134 crore dispute linked to a loan extended to Siti Networks Ltd, sending the company's stock higher. Zee share price rallied after the relief from the Arbitral Tribunal, gaining as much as 4.39% to ₹ 122.30 apiece on the BSE. Aditya Birla Finance had initiated arbitration proceedings against Zee Entertainment Enterprises, seeking enforcement of a Letter of Comfort (LOC) allegedly issued by the company in connection with a ₹ 134 crore term loan granted to Siti Networks. The finance firm had claimed that the LOC effectively served as a corporate guarantee and demanded that Zee be held liable for the repayment. In its plea, ABFL had sought multiple reliefs, including a declaration that the LOC constituted a guarantee and directions for Zee to pay the outstanding loan with interest — totaling ₹ 174.57 crore. Additionally, it sought a refund of ₹ 108 crore that Siti had paid to Zee in FY 2020–21. However, Zee contested the claim, asserting that the LOC did not amount to a financial guarantee. The company maintained that the ₹ 108 crore was part of a legitimate business transaction—consideration for signals and channels provided to Siti as per Interconnection Agreements governed by the TRAI Act. Zee further countered with a ₹ 15 crore claim, citing that the amount was deposited by Siti in fixed deposits on Zee's behalf but had been appropriated by ABFL. In its final award dated May 12, 2024, the Arbitral Tribunal dismissed all claims made by ABFL. However, it did not make a final ruling on Zee's counterclaim, instead leaving the matter open and allowing both parties to pursue further remedies before the National Company Law Appellate Tribunal (NCLAT). At 1:45 PM, ZEE share price was trading 4.01% higher at ₹ 121.85 apiece on the BSE.
Mint
13-05-2025
- Business
- Mint
Zee Entertainment share price jumps as Arbitral Tribunal rejects Aditya Birla Finance's ₹134 crore claim
Zee Entertainment Enterprises Ltd (ZEEL) on Tuesday said the Arbitral Tribunal has rejected all claims filed by Aditya Birla Finance Ltd (ABFL) in a ₹ 134 crore dispute linked to a loan extended to Siti Networks Ltd. Zee share price rallied after the relief from the Arbitral Tribunal. Zee shares spiked as much as 4.39% to ₹ 122.30 apiece on the BSE. Aditya Birla Finance had initiated arbitration proceedings against Zee Entertainment Enterprises, seeking enforcement of a Letter of Comfort (LOC) allegedly issued by the company in connection with a ₹ 134 crore term loan granted to Siti Networks. The finance firm had claimed that the LOC effectively served as a corporate guarantee and demanded that Zee be held liable for the repayment. In its plea, ABFL had sought multiple reliefs, including a declaration that the LOC constituted a guarantee and directions for Zee to pay the outstanding loan with interest — totaling ₹ 174.57 crore. Additionally, it sought a refund of ₹ 108 crore that Siti had paid to Zee in FY 2020–21. However, Zee contested the claim, asserting that the LOC did not amount to a financial guarantee. The company maintained that the ₹ 108 crore was part of a legitimate business transaction—consideration for signals and channels provided to Siti as per Interconnection Agreements governed by the TRAI Act. Zee further countered with a ₹ 15 crore claim, citing that amount was deposited by Siti in fixed deposits on Zee's behalf but had been appropriated by ABFL. In its final award dated May 12, 2024, the Arbitral Tribunal dismissed all claims made by ABFL. However, it did not make a final ruling on Zee's counterclaim, instead leaving the matter open and allowing both parties to pursue further remedies before the National Company Law Appellate Tribunal (NCLAT). At 1:45 PM, ZEE share price was trading 4.01% higher at ₹ 121.85 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Upturn
13-05-2025
- Business
- Business Upturn
Zee Entertainment gets relief as arbitral tribunal rejects Aditya Birla Finance's Rs 134 crore claim
Zee Entertainment Enterprises Ltd (ZEEL) has received a favourable ruling from an arbitral tribunal in a dispute initiated by Aditya Birla Finance Limited (ABFL) concerning a ₹134 crore term loan extended to Siti Networks Limited. ABFL had initiated arbitration to enforce a Letter of Comfort (LOC) it claimed had been issued by Zee in relation to the loan. ABFL sought reliefs including a declaration that the LOC amounted to a guarantee, directing Zee to repay ₹174.57 crore with interest or refund ₹108 crore that Siti allegedly transferred to Zee during FY21. Zee also filed a counter-claim of ₹15 crore, which it said was money owed by ABFL to Zee, appropriated from a fixed deposit originally made by Siti. Zee contested ABFL's claims, arguing that the LOC did not constitute a financial guarantee and that the ₹108 crore reflected valid business payments for channels and signals under interconnection agreements governed by TRAI rules. In a final award dated May 12, 2024, the arbitral tribunal rejected all claims made by ABFL. However, it did not issue a conclusive ruling on Zee's ₹15 crore counterclaim. The tribunal instead granted Zee the liberty to pursue remedies before the National Company Law Appellate Tribunal (NCLAT). The ruling significantly relieves Zee of potential liabilities and strengthens its legal stance amidst ongoing financial and corporate challenges. Disclaimer: The information provided is for informational purposes only and should not be construed as legal or financial advice. Please consult a qualified advisor before making any investment or legal decisions. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
