Bankruptcy code boosting corporate bonds: CRISIL
The Dollar Business Bureau The various initiatives of Indian government and the newly introduced Insolvency and Bankruptcy Code, 2016 are boosting the country’s corporate bond market, said CRISIL in a report. According to it, lesser profitability of public sector banks (PSBs) has reduced their capability in accruing capital. Weak performance, particularly due to the rise in non-performing assets (NPAs), has created a challenging environment for the PSBs in raising money from the capital market. Higher provisioning is another factor that has weakened the ability of PSBs in offering better interest rates. Along with the rise in credit demand, capital requirement would also increase. There are also several other imperatives of growth, the report states. India will require Rs.43 lakh crore (approximately $650 billion) for ...
46,000 MW of power projects facing viability issues: CRISIL
Source: PTI Power projects with a collective capacity of 46,000 MW are facing viability issues due to lack of long-term energy buyers, inadequate fuel supply, and aggressive bidding to win projects and coal blocks. Of this, 36,000 MW are coal-based within which tariff under recovery has affected 20,000 MW in capacity. The rest are reeling because of inadequate feedstock and poor electricity off-take by distribution companies (discoms). Further, 10,000 MW of gas-based projects have become unviable due to dwindling fuel supplies from the Krishna Godavari basin. In a report titled "Current Worries" released Tuesday, CRISIL Ratings said loans of Rs 75,000 crore are at risk if these problems are not resolved soon. "Total loans to these stressed generation projects are currently Rs 2.1 lakh crore. ...
