Only 50% of ` 94k-cr IL&FS debt to be ad­dressed

The Times of India (New Delhi edition) - - Times Global - TIMES NEWS NET­WORK TIMES NEWS NET­WORK

Mum­bai: The IL&FS res­o­lu­tion process is ex­pected to ad­dress only half of group’s debt of Rs 94,000 crore, ac­cord­ing to Uday Ko­tak, the gov­ern­ment-ap­pointed chair­man of the trou­bled in­fra­struc­ture and fi­nance group. The gov­ern­ment on Tues­day amended bank­ing laws to en­able Ko­tak to be on the IL&FS board for one more year.

“The gov­ern­ment has given me a term of one year, but we are tar­get­ing to achieve res­o­lu­tion for a sig­nif­i­cant quan­tum of ad­dress­able debt by March 2020,”said Ko­tak.

Ad­dress­ing newsper­sons on com­ple­tion of one year of the gov­ern­ment-ap­pointed board at IL&FS, Ko­tak said management was se­ri­ously con­sid­er­ing get­ting lenders to in­vest units is­sued by the in­fra­struc­ture in­vest­ment trust (In­vIT) in place of the debt they hold.

This fol­lows lack of in­ter­est from strate­gic in­vestors with four projects not re­ceiv­ing any bids at all. Un­der this struc­ture, the in­vestors get cash flows gen­er­ated from the in­fra­struc­ture as­set which, in this case, would be the toll from the roads.

Ko­tak said that the Rs 30,000-odd crore of debt that has been ad­dressed in­cludes Rs 4,320 crore for sale of wind en­ergy as­sets. In ad­di­tion, there is close to Rs 8,000 crore in com­pa­nies that are clas­si­fied as ‘green’, which are in a po­si­tion to ser­vice their debt from their ex­ist­ing cash flows.

Firm bids have been re­ceived for five road projects with debt of Rs 8,100 crore and the In­vIT route is be­ing con­sid­ered for an­other nine projects with debt of over Rs 10,000 crore. New Delhi: Goods and ser­vices tax (GST) col­lec­tions in Septem­ber fell 2.7% to Rs 91,916 crore, the low­est monthly mop-up in 19 months, as floods and the auto slow­down took a toll on gov­ern­ment rev­enue.

Lat­est data re­leased by the fi­nance min­istry showed that tax col­lec­tions in Septem­ber were the low­est since Fe­bru­ary 2018 when the kitty was a shade short of Rs 86,000 crore. This is the first time since Au­gust 2018 when there has been a

23% GST pay­ers can file re­turns via SMS, P 26

de­cline on a year-on-year ba­sis, with tax ex­perts putting the blame on the over­all eco­nomic slow­down.

Lat­est num­bers also make the task of the gov­ern­ment to achieve the rev­enue tar­get more chal­leng­ing as growth dur­ing first half of cur­rent fis­cal year was es­ti­mated at 4.9% com­pared to the an­nual tar­get of 13%. “Chal­leng­ing times ahead for the gov­ern­ment,” said Harpreet Singh, a part­ner at con­sult­ing firm KPMG in In­dia.

In terms of the split, weak­ness in im­ports was seen to be one of the main rea­sons for the de­cline as In­te­grated GST de­clined 10%. Weak im­ports are seen as a pointer to an over­all eco­nomic slow­down as cap­i­tal goods and raw ma­te­rial con­sump­tion is lower across the econ­omy. The cen­tral GST col­lec­tions were seen to be a lit­tle bet­ter, reg­is­ter­ing an 8.6% rise in Septem­ber, com­pared to 7.3% in­crease in case of state GST.

“Lower col­lec­tion per­haps re­flect eco­nomic re­al­ity on the ground and the gov­ern­ment will need to find ways to spur de­mand,” said Pratik Jain, who leads the in­di­rect tax prac­tice at PwC In­dia.

From an over­all per­spec­tive, the num­bers will put pres­sure on the fis­cal po­si­tion of states as well as the Cen­tre. “This is a risk not only for the cen­tral gov­ern­ment’s fis­cal sit­u­a­tion, but also for state gov­ern­ments, which re­ceive 42% of share­able cen­tral taxes as de­vo­lu­tion. There­fore, lower-than-bud­geted GST col­lec­tions would likely re­duce cen­tral taxes de­volved to states in FY2020,” said Aditi Na­yar, prin­ci­pal econ­o­mist at ICRA. has failed to take the in­dus­try to pos­i­tive tra­jec­tory.

The auto in­dus­try has been de­mand­ing a cut in GST rate, which is cur­rently pegged at 28%. In­dus­try body Siam pres­i­dent Ra­jan Wad­hera has re­quested that GST rate be brought down by 10% to drive in af­ford­abil­ity. Apart from Maruti, oth­ers were also in the red. These in­cluded Hyundai, Mahin­dra & Mahin­dra, and Honda. Tata Mo­tors saw a tough se­cond month as its vol­umes shrankby 56% to around 8,100 units. Two-wheeler num­bers have been equally sub­dued .

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.