Latest news with #Rs177
Hans India
2 days ago
- Business
- Hans India
Sridhar Babu lays foundation stone for Rs 177-cr Toshiba plant
Hyderabad: Japanese major Toshiba has lined up Rs347-cr investment for expansion plan including a new EHVT power transformer plant, a CRGO Core Processing Centre and a Surge Arrester Unit, all located at Rudraram in Sangareddy district. Telangana IT and Industries Minister Duddilla Sridhar Babu on Friday laid the foundation stone for the Rs177 crore expansion of the Extra High Voltage Transformer (EHVT) plant, while inaugurating the two new state-of-the-art facilities worth Rs65 crore and Rs105 crore, respectively. Sridhar Babu highlighted Telangana's rapid growth in the industrial sector. He said: 'The State is projected to achieve an industrial output of Rs2.77 lakh crore in 2024–25, with manufacturing contributing nearly 48 per cent of that. Merchandise exports worth Rs1 lakh crore have already been recorded in just nine months. Telangana's GSDP growth stands at 8.2 per cent, well above the national average, reflecting our strategic focus on economic development.' Domestic electricity demand has been increasing and it's indicating expansion of economy. With the demand for electricity expected to double in India by 2040, Telangana is aligning its industrial development with the country's future energy needs. 'The Economic Survey 2024–25 projects a surge in domestic electricity demand. To meet this, we're aggressively attracting investments in clean and renewable energy,' the Minister said. He noted that under the State's Clean and Green Energy Policy 2025, Telangana has already attracted Rs 29,000 crore in investments and is working toward adding 20,000 MW of renewable capacity by 2030.
Time of India
6 days ago
- Business
- Time of India
Rs50cr cleared for Nagpur weavers' dues, years after closure
Nagpur: In a major relief for over a thousand workers of the defunct Nagpur Weavers' Cooperative, the state cabinet has approved a proposal to allocate Rs50 crore from the proceeds of the organisation's land sale towards payment of solatium to its employees. Tired of too many ads? go ad free now The cooperative, which employed more than 1,100 workers before it shut down, left many in financial distress. The 20-acre land owned by the cooperative, located off Umred Road, was sold to the Maharashtra Housing and Area Development Authority (MHADA) for Rs177 crore. The sale was executed after securing consent from 685 of the 1,100-odd workers, with the primary aim of settling pending dues. Of the total Rs62 crore owed to the workers, only Rs10 crore was disbursed in March 2019, according to Central Nagpur MLA Pravin Datke, who raised the issue in the state assembly. A decision to clear the remaining dues was taken in July 2024, during the tenure of as deputy chief minister. However, the move was stalled due to the enforcement of the election code of conduct. The cabinet finally cleared the Rs50 crore proposal on Tuesday. Datke, who has long advocated for the workers' cause, said the demand was to clear all dues pending till March 2008. Despite meetings by the textile department in March 2008 and again in 2016, necessary approvals could not be obtained from the finance department at the time.
Express Tribune
07-07-2025
- Business
- Express Tribune
Sick units' debt reduction delayed
The State Bank of Pakistan (SBP) has termed judicial process slow and time consuming that delays debt restructuring and further plunges industries into financial distress. In the SBP Guidelines 2025 for the revival of sick industrial units submitted to the federal government, the central bank has said that for industrial units in financial stress, debt restructuring is hindered by several critical issues. The judicial process, as the first course of action, is slow and time consuming, "further pushing industries into distress," and secondly, lending to distressed debtors largely depends on the ability of lenders to find uncollateralised assets – an uncommon and discouraged practice, it said. "Banks remain reluctant to offer new financing to struggling borrowers," the guidelines said, adding that banks face an upfront charge on new funding extended to revive non-performing/stressed units. Furthermore, public sector banks are restricted from independently writing off debt linked with principal amounts, contributing to hesitancy in balance sheet cleanup. A leading indicator of financial stress for companies is the ratio and amount of non-performing loans (NPLs). While the NPL ratio slightly improved in 2024, the amount of bad loans remained at a historic level. Between 2006 and 2015, Pakistan's NPLs showed a rising trend – both in absolute terms and as a percentage of total advances. NPLs increased from Rs177 billion in 2006 to a peak of Rs618 billion in 2012, before slightly declining and stabilising at Rs605 billion in 2014 and 2015. The NPL ratio rose from 7% in 2006 to a high of 16% in 2011, reflecting the deteriorating credit quality. Meanwhile, the Karachi Inter-bank Offered Rate (Kibor) fluctuated during the period, peaking at 14.2% in 2008 and declining to 6.8% by 2015, which indicated a shift in monetary policy. The financing for sick units will be applicable to all scheduled banks and development finance institutions (DFIs) operating in Pakistan, with special emphasis on government-owned financial institutions. The proposed SBP guidelines are projected to eliminate ambiguity by providing a formal and accountable structure. This framework allows government-owned financial institutions to conduct debt restructuring and offer principal haircuts with audit protection, thereby enabling them to support revival of sick industrial units effectively. These guidelines are consistent with the legal provisions contained in Section 296 of the Companies Ordinance 1984, Section 43 of the Companies Act 1997 and Companies Rules 1999 (for out-of-court rehabilitation forwarded by the bankers' committee) to enable the restructuring and revival of non-performing, sick or dormant industrial units through targeted loan settlements (including principal haircuts where necessary) and structured rescheduling or resumption of debt servicing based on viability. This is also aimed at establishing a formal mechanism to encourage government-owned financial institutions to participate in debt resolution and cleanup of bank balance sheets, improvement of lending ecosystem and reactivation of idle capacity in the real economy. A significant proportion of Pakistan's industrial capacity remains underutilised due to financial distress and prolonged loan defaults. While private banks have undertaken loan settlements and haircuts to clean up their balance sheets, government-owned banks have remained risk averse due to audit fears, the lack of enabling guidelines and rigid accountability structures. These guidelines are envisaged to correct the imbalance by providing clear, accountable and transparent criteria for debt settlement and revival of such accounts. To become eligible, the borrowing entity must be engaged in a registered industrial or commercial activity (eg manufacturing, agribusiness, logistics, energy and services). It must be assessed as a "sick industrial unit," which is a manufacturing concern that has defaulted on repayments of outstanding debt to banking companies and/or non-banking financial institutions for four consecutive quarters immediately prior to the date of consideration. The entity's loan accounts must be classified as NPLs for a minimum of 12 months. The unit must have remained closed, idle or operated at less than 30% of its designed capacity for at least one year. Borrowers adjudicated as fraudsters are excluded. A detailed revival and business viability plan, supported by financial projections, demand analysis and working capital requirements, must be submitted by the borrower, the SBP said.
