Jet Airways: Govt Says It Has No Role in Raising Funds for the Carrier
The Union government has said that mobilising financial resources and ensuring efficient operations are the responsibility of Jet Airways and it has not role in raising funds for the ailing carrier.
 
Hardeep Singh Puri, minister of state for civil aviation (independent charge), while responding to a question in the Lok Sabha, says, "... each airline prepares its business plan on the basis of its own market assessment and liabilities. Mobilising financial resources and ensuring efficient operations as per business plan are the responsibility of the airline. Government of India has no role in raising funds for Jet Airways (India) Ltd, as it is the internal matter of the airline."
 
Kaushalendra Kumar, a member of Parliament (MP) from the Lok Sabha has asked the question about revival of Jet Airways.
 
 
While describing efforts taken by the government to revive Jet Airways, the minister denied that the situation occurred due to action in time by State Bank of India (SBI). He says, "Jet Airways reported aggregated losses during past few quarters, which eroded its liquidity and jeopardised its ability to sustain its operations. As a result, there were significant overdues towards all creditors including the lessors of the aircrafts, pilots, suppliers, oil companies and employees. Lenders explored various options for revival of the company through resolution plan. To mitigate immediate operation crisis faced by the company, promoters and lenders were expected to infuse funds. Since the promoters did not bring in full amount of their share, therefore the lenders' consortium led by SBI could not infuse the committed interim fund."
 
"...bids were called by the lenders for change in ownership and management of the company. However, no unconditional and proper bid was received. It was understood that some of the relaxation or waiver sought are only available under a corporate insolvency resolution process (CIRP) under the insolvency and bankruptcy code (IBC). Hence, SBI has filed an application in the National Company Law Tribunal (NCLT), Mumbai on 17 June 2019 under the IBC to work out a resolution plan. The said application was admitted by NCLT on 20 June 2019. Revival of the airline is now possible only under IBC," Mr Puri added.
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    MSME Credit Continues to Grow at a Healthy Rate Signalling Rapid Revival: Report
    Total debt in India, including government debt, as well as debt of corporate entities and individual borrowers, has increased at a compounded annual growth rate (CAGR) of 13.3% to reach the level of Rs253 lakh crore during the past five years ending March 2019, says a report.
     
    The sixth edition of TransUnion CIBIL- SIDBI MSME Pulse Report says the growth in aggregate debt in the past four years is powered by a 22% CAGR growth on lending to individuals, including consumer loan, business loan to individuals and other loans, 13.4% CAGR of lending to commercial entities, including MSME and corporate entities and a 10.6% of government debt.
     
     
    A marked decline in non-performing assets (NPAs) adds a silver lining to these growth trends, the report says adding overall gross NPA rate in commercial lending stood at 16.0% in March 2019- a significant lowering from 17.2% during the same period last year.
     
    It says, "NPA rate had reached its peak in the period between March 2018 to June 2018 for medium and large segment. However, after experiencing a long period of stress, the commercial credit sector is on the course to recovery as the NPAs have finally started showing a gradual decline post June 2018 quarter." 
     
    Commenting on the report, Mohammad Mustafa, Chairman and Managing Director, SIDBI says, "The sustained growth in commercial lending along with marked lowering of NPAs is a very promising indicator of MSME sector growth which plays a pivotal role in catalysing economic development. Even more interesting is the trend on increasing rate of individual lending for businesses which brings a major shift in the composition of the lending industry in favour of individuals. These findings bode well towards the ease of doing business in India with MSMEs being able to get faster and easier access to credit for driving business growth."
     
    This sixth edition of MSME Pulse covers a study on state-wise performance analysis on MSME lending under "credit opportunity" and "risk index" parameters based on a model of ranking the potential of states towards extending credit to MSME corporate entities defined basis the aggregate credit exposure up to Rs50 crore. 
     
     
    The study shows that Gujarat has emerged as the top ranking state in terms of performance and growth potential for MSME lending in India followed by Andhra Pradesh, Haryana, Karnataka and Delhi. Other states with high potential in MSME corporate lending are Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh and Jammu & Kashmir. 
     
     
    Commenting on this finding on state wise performance, Satish Pillai, MD and chief executive (CEO) of TransUnion CIBIL says, "The state-wise performance insights throw significant light on the credit opportunity, potential of MSME growth and risk predictors across India. Gujarat has consistently ranked no. 1 over the last four years (FY16 to FY19).
     
    While Maharashtra ranks highest on market size, its NPAs are also high indicating increase in credit risk. Close monitoring of MSME portfolios and timely risk identification and control measures are crucial towards achieving healthy MSME growth and sustained economic development."
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    COMMENTS

    V ganesan

    4 weeks ago

    This is good in economic slowdown .Are people ignore these indicators in stock market. or are they threteaning the govt by way bringing down the shareprices regarding super rich tax.Currency is stable bond yields are at low global markets at multiyear high.there is no reason for our market to fall except the high valuation.

    So What Did Consumers Go Crazy About on Amazon Prime Day?
    Nothing probably signals the huge popularity of Maggi noodles - once banned by Indian government- than the numbers it notched up on Amazon’s prime day sales. According to a Nestle communication to stock exchanges, a limited edition assorted box became the best seller in the grocery and gourmet section within four hours. This also signals a change in purchasing patterns, where online platforms, which are able to create special packages and deliver them nationwide may be able to sweep sales if the product catches the buyers’ fancy. 
     
    Nestle says Maggi Fusian, its range of Asian flavour inspired noodles, have garnered overwhelming consumer response on Amazon Prime Days, witnessing an equivalent of 2.5 lakh single units being sold over a two day period, with orders coming from 29 states of India. 
     
    "This is the highest ever sale over a two day period of any Maggi noodle variant unit on an e-commerce platform and surpasses what we had achieved while relaunching the brand in 2015," says Nikhil Chand, director for foods and confectionery at Nestle India.
     
    According to the company, its limited edition assortment box, created for the platform, became the bestseller in the 'grocery and gourmet foods' section within four hours of the launch and continued to be the most sold item during the entire duration of sales on this section. The box was also the most 'wished for' product in the same section, when the 'Prime Day' sales closed, it added.
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