Richard Maponya’s big dreams for Soweto

first_imgRichard Maponya will feature on the next instalment of Brand South Africa’s Play Your Part TV series on Sunday 24 August on SABC2 at 9pm. It has always been Richard Maponya’s dream to see Soweto grow. (Image: Facebook/ Richard Maponya) Maponya Developments +27 861 333 264 info@mapdev.co.za • Agoa opens up opportunities for Africa’s female entrepreneurs • Soweto: from struggle to suburbia • South African businesses honoured • Boost for black-owned firms in South Africa • South African business magazine the best in the worldRomaana NaidooIt has always been Richard John Pelwana Maponya’s dream to see Soweto grow its own flourishing economy.Born in Limpopo Province on 24 December 1926, Maponya is a property developer best known for building a business empire despite the restrictions apartheid imposed on black South Africans. He was fiercely determined to see Soweto develop economically.Aged 24, Maponya – a teacher at the time – took a job as a stock taker at a clothing manufacturer. The manager sold Maponya soiled clothing and offcuts, which he then resold in Soweto. He eventually saved enough capital to open a clothing retailer in Soweto, despite being denied a licence under apartheid laws restricting business ownership for black South Africans. He had even hired the law firm of Mandela and Tambo to help him obtain the licence.Undeterred though, he continued his life’s journey towards entrepreneurial greatness.In the early 1950s, Maponya and his wife Marina (a cousin of Mandela) established the Dube Hygienic Dairy, which employed boys on bicycles to deliver milk to customers – who didn’t have access to electricity or refrigeration – in Soweto.In the 1960s, Maponya was a founding member and first president of the National African Federated Chamber of Commerce (Nafcoc), and the founder and chairman of the African Chamber of Commerce.By the 70s, his clothing empire had grown, and he had begun to branch out into other areas: general stores, car dealerships and filling stations. His most recognisable development though has been Soweto’s Maponya Mall.On 27 September 2007 Nelson Mandela officially opened Maponya Mall, one of the largest shopping centres in the country.Maponya secured the land on which the mall is situated in 1979, first on a 100-year lease. Then, in 1994, after several attempts, he acquired it outright.Continuing to grow Soweto’s economy, Maponya also established Maponya Motor City on Klipspruit Valley Road in Orlando East. The development included a Volkswagen and Toyota dealership respectively.At that time former Deputy President Kgalema Motlanthe said the development was “another milestone for Soweto by the Maponya Group as they continue to build sustainable world-class businesses in Soweto”.Maponya Motor City was the first such business in the south of Johannesburg, and now the Maponya Group’s ventures include property development, horse racing and breeding, retail, automotive sales, filling stations and liquor stores.last_img read more

Modern parenting demands accessible father

first_imgA crisp Saturday morning in Baroda, and around 150 men have turned up to chat and mingle. It’s not just any conference. Fathers all, they have been roped in by their employer, ABB Ltd, the power and automation giant, to hear Rajalakshmi Sriram talk about fathering. Set amidst the sprawling,A crisp Saturday morning in Baroda, and around 150 men have turned up to chat and mingle. It’s not just any conference. Fathers all, they have been roped in by their employer, ABB Ltd, the power and automation giant, to hear Rajalakshmi Sriram talk about fathering. Set amidst the sprawling expanse of Maneja on the outskirts of the city, everything has an ultramodern sheen. But the chic wood-and-steel dcor, which usually crackles with professional energy, looks laidback and carefree today. Colourful posters hang on every corner, pushing for “child-plus-plus” attitude. Sriram, who teaches at the department of human development and family studies in MS University, belongs to the rare breed of scholars exploring the idea of fatherhood in modern India. She begins her PowerPoint slideshow: “Are You an Effective Father?” The dads fidget and cough.Himanshu Chakrawart , 40, COO, ChennaiTalk about catching the moment. If career moms’ struggles make daily headlines, the buzz around fatherhood is getting louder. “Women’s liberation has slowly but surely changed the context and substance of men’s lives,” points out psychoanalyst Sudhir Kakar. And dads, as the Baroda session indicates, are rising to the challenge. Expressing regret at not being able to balance work and fatherhood, they are talking about the need to be more involved with their children and trying to renegotiate their lives to allow for effective parenting. An ACNielsen survey this year revealed 74 per cent Indian men do not want work to take up all their time. And 50 per cent crave more time with family. Says Kakar, “This is one of the most striking changes associated with modernity in India”-a theme that underpins his just-released book, The Indians: Portrait of a People. In the West, a similar ferment saw the birth of Men’s Studies a decade back, questioning traditional forms of masculinity. In India, too, a redefinition of fatherhood seems to be underway.Why are dads stressed out?advertisementNew economic forces, such as global competition, create an increasingly fluid job market. It demands committed employees at a time when loyalty is low. Salaries are zooming, but hiring and firing are easier. Dads work longer hours to prove their indispensability.Shoulder more responsibility and risk or slide down the economic ladder, says the market. It prefers nimble, younger people with constantly adaptable skills. Dads are under pressure to acquire new skills and work towards a greater future.Invasive technology-from vibrating BlackBerrys, always-on Internet connectivity, to midnight teleconferencing with colleagues abroad-makes it harder for dads to detach from work at home.More moms enter the workforce.For every five men, there is one woman who works in an income generating activity in urban India today. Dads are left scrambling to become the full-fledged co-parents their wives now need them to be.Modern parenting, post-globalisation, demands a more accessible father. Families are child-centric, children don’t hold dads in awe. Fathers are not expected to be just the providers and disciplinarians. Caught between old values and new, dads are confused.The biggest pressure on dads comes from the new competitive global economy. The fluid job market makes more demands and fewer promises. “It requires people to shoulder more responsibilities and risk,” says Himanshu Chakrawarti, 40, COO of Landmark in Chennai, and an overstretched dad, “People are willing to work longer hours for a better future.” Office space has also become more comfortable and conducive for work. “The intrusion of technology-the Internet, e-mails and mobile phones- makes it harder to detach from work,” points out the IIT-IIM alumnus.And the family bears the brunt. For many years, a 40-something operations executive with HSBC (who spoke on condition of anonymity) played by his hard-driving boss’s rules-“living at work”, as he describes it. Then one weekend, his young son fell and cut his knee. To his shock and dismay, the child refused to let the father comfort him. In fact, he treated him like a stranger. The event was a turning point. Although fearful for his job, he approached his boss and said that he had let slip the singlemost important priority in his life-a close relation with his son.”Judge me by the quality of my work, not the amount of time I spend in office,” he said. The request led to an uproar, but it probably helped the bank put people first. HSBC today is one of the few companies in India with employee-friendly, flexible policies.Guilt and regret are the by-word in many a dad’s life. Take a day in the life of Rajeev Ramachandra, 40, of Bangalore. As founder of Mistral Software, an embedded software product company with offices around the world, he’s on call 24X7. He logs in at work by 9 a.m. and leaves almost 12 hours later, bringing work home every day and working for at least two hours. That leaves him with an hour or so of free time, when he tries to relax, have his evening meals and spend time with his children. This, mind you, is one of his better parenting days. Nearly three weeks every quarter he’s on tour. “I feel I don’t give my children enough time. I try hard to keep my weekends free for them,” Ramachandra says ruefully.advertisementConsider L. Viswanathan, 35, partner with leading Mumbai law firm Amarchand & Mangaldas. His work easily takes up 14 hours on a weekday, most Saturdays and sometimes Sundays. Nearly four times a month it takes him away from home. “It’s painful when your little girl cries and clings to you every morning to stop you from going to work,” he says. Little Sivaranjani runs a moody eye over her dad: “Daddy is always in office.”A gaggle of similarly harried men stream through the consulting room of Dr Aniruddha Deb, a psychiatrist in Kolkata. “Most of them have winning careers, are in their late 30s or 40s, work round the clock, spend long hours in office, are busy on the BlackBerry or the Internet at home, and often on the phone with colleagues across the seas at unearthly hours.” In most cases, the “index patients” are children. Fathers come either because children’s “grades are falling”, or they are getting “difficult to handle”. But in the course of counselling it often appears that it’s the father’s physical or mental absence that’s at the root of the crisis.The ‘overstretched dad’ is undoubtedly a by-product of modern parenting. “It’s the shifting contours of the post-globalisation family that have created new circumstances for modern parents,” says sociologist Radhika Chopra of Delhi University. Fifty years ago, parenting was simpler for men. As the sole breadwinner, a dad’s responsibilities typically ceased the moment he crossed the threshold of his home. The father was more aloof and emotionally more detached. The breakdown of the joint family has lessened the father-child distance. The modern father, Chopra points out, “is no longer the patriarch at home”.BlackBerry vibrates. Call from dad’s US office for a meeting via teleconferencing. A deal needs to be finalised by following day. Dad struggles to go back to sleep. 6.30a.m.Alarm goes off. Dad wakes up groggy and decides to go for a jog. Fires off SMS-es to his staff before sprinting into the crosswalk with his i-Mate. Perfect time to grab the boss’s ear. 7:15a.m.Dad wakes the kids up for breakfast, catches the news on the telly, keeps an eye on the toddler and takes a look at 10-year-old son’s class project. Rushes to get ready for office. 9:30a.m.Dad logs in at office. Late by a half hour today. Got delayed by his baby crying and clinging on to his trouser leg. Nasty traffic snarl in front of older boy’s school, too. 7:30p.m.advertisementConference call with the US office ends. Dad feels obliged to go out for a drink with colleagues and clients. He calls it a day and logs off. 9 p.m.Dad arrives home. About an hour of playtime. Dad cuddles, reads stories, listens and also supervises math homework. He tries to relax and takes his meal. 10 p.m.Children in bed. Dad brings work home during the week (tries hard to keep the weekends free). He tries to wrap up a project for his forthcoming tour.Dad and mom watch television for a while. Dad usually finds it hard to switch off. But tonight, dad is out like a light the moment his head touches the pillow.The result is that the idea of the family, the hierarchy within it and the expectations from it are turning upside-down. “Kids don’t seem to hold fathers in awe anymore,” points out Dr Jitendra Nagpal, consultant psychiatrist with VIMHANS, Delhi. “Families are much more child-centric now and children are quick to grasp this.” He has had disgruntled teenagers telling him, “My father is a Sunday Father. I see him only on Sundays.” In a study conducted this year on 1,460 adolescents by VIMHANS, children’s disappointment with fathers comes across clearly: 73 per cent prefer to discuss issues troubling them with friends, and only 13 per cent with parents. They cite an absentee father as the reason for shunning the parental ear. In yet another VIMHANS study in 2005, teachers across the country claimed, 70 to 80 per cent of fathers do not turn up at parent-teacher meetings in schools. Kolkata’s Harshvardhan Neotia, 45, doesn’t remember the last time he attended a parent-teacher meeting. The industrialist rues that he is proba-bly one of those Sunday fathers for his 11-year-old twins, Parthiv and Paroma: “I’m lucky if I can say ‘hi’ to them on weekdays.” But the son has started asking for more time these days, says his wife Madhu: “As a solution, Harsh sometimes takes Parthiv to office.” Meantime, Neotia continues to be plagued by remorse: “There are some men who can take care of everything and still be home for dinner. I never seem to manage it.”The sense of guilt pushes some men to overcompensate children with expensive gifts. Chakrawarti, for example, recently bought a toy-scooter scooter for Rs 5,000 on his three-yearold daughter Anaya’s birthday (“She knows how to get me to say yes to everything”). Deb narrates the case of a father whose plastic parts business with Tata Motors left him with no time in hand. To compensate, he would ‘bribe’ his teenage son with a car, unlimited pocket money, even membership access for playing golf at his club. The son did not misbehave or lose interest in studies. “He just lost interest in his parents,” says Deb, “He was totally detached from anything at home.” The father made serious efforts to build bridges, but it was too late to reinvent the wheel. Psychiatrist N. Rangarajan of Chennai is not surprised. “It’s a common mechanism for fathers to compensate for their absence from home,” he says, “but very often it harms the way a child grows up and forms relationships as an adult.”Rajeev Ramachandra, 40, Mistral Software, BangaloreMuch more alarming is the way new research quantifies the effects of this physical or emotional absenteeism. In March, British scientists analysing thousands of babies born around the turn of the millennium claimed that children with absentee fathers score lower on tests of empathy, reasoning and brain development. They behave more aggressively, are more likely to have trouble forming relationships and are more reluctant to take responsibility for misbehaviour.In 2002, the US National Center for Policy Analysis had concluded such children were up to three times more likely to engage in a criminal activity, and a 1993 Harvard study had showed that the amount of time a father spent with his children could affect their ability at math and sports.The bottom line is, fathers are in conflict. Sriram calls them “transient, confused fathers” caught between changing worlds: “They were brought look at childcare as a woman’s job, they received no training in fathering, and they are confused about the longterm effects of adopting modern ways.” Studies show how conflicting ideas of parental roles within the family create further confusion. Sociologist G.N. Ramu of the University of Manitoba in the US has analysed how for many Indian women allowing a man to take up childcare violates their self-image as competent mothers and wives. In 2005, when Sriram interviewed 50 parents in Baroda, 38 per cent cited job context (lack of time, work pressure) for not being an active parent; 30 per cent mentioned “unsuitable temperament” and “lack of skills” to be an effective father; 21 per cent rooted for the fathers’ tendency to “escape from certain tasks” easily.What cuts away the ground beneath men’s feet further is the entry of women in the workforce. For every five men, there is one woman who works in an income-generating activity in urban India today. Having two incomes may have brought economic benefits to countless families and given women opportunities for fulfilment, but it has left men scrambling to become the fullfledged co-parents their wives now need them to be. A study shows that Indian men today pitch in 16 hours a week in housework-up from 1.2 hours in 1965. But the real crunch lies elsewhere for professional couples with matching incomes. “The sense of masculinity, more than fathering, goes up for re-negotiation,” says Chopra. Take Chakrawarti and his wife Raka, a PR professional. While she believes he should spend more time with their child, he thinks he does his best: “My wife may not agree with me, but I play with my daughter, read her stories and take her out whenever I can.””Whenever I can” is the operative phrase and professional economist, Omkar Goswami, feels most dads are overstretched because they don’t know how to prioritise their time. “Even at Infosys, which is known for its productivity, 95 per cent of men leave office by 7.30 p.m.,” says the man who figures on the board of directors of the company. “The legendary Narayana Murthy, founder of Infosys, always had the time to mentor his daughter’s education.” It also has to do with the New Age notion of ‘the complete man’, feels professor Mangesh Kulkarni of the University of Pune, who’s also the convener of the Forum for the Study of Men & Masculinities. There is a greater “civil privatism” in men’s lives today-“a withdrawal into the shell of private, family life and activities centred on shopping and consumption, rather than public engagements on which men used to spend a good deal of their time and energy earlier.”L.Viswanathan, 35, partner, Amarchand Mangaldas, MumbaiYet, for most fathers, salvation lies in the world of work. While the concept of progressive programmes is catching up worldwide, there is no law in force in India which entitles a father to balance work and home. A random check reveals that most corporates grant paternity leave for as little as two days to a maximum of three months. But already there are murmurs of change. HSBC bank has initiated measures-childcare centres to flexi hours to longer paternity leave. NDTV is a rare media company that provides for crches. The IT sector, home to the ‘best employers’ in India, is pushing for incentive packages, which include paternity leave. Some, like ABB, include fathering in social responsibility agenda.The easiest formula for men to improvise ways of boosting the time they spend with their children is to learn from their working spouse and be more like a woman. A tough call in a macho Indian society, made tougher in today’s highly competitive work culture, where staying late at work is considered a sign of an employee’s status and importance in a company. For most dads it’s the menopause syndrome all over again-does he pause at work and spend more time at home or will that mean losing out on the fatter paycheck, the fancier car, the promotion? Till that dilemma is resolved, the tribe of Transient Confused Fathers can only increase.last_img read more

U?19 Central Armed Police Forces football meet in Mumbai

first_imgMumbai, Apr 27 (PTI) An under-19 football tournament, jointly organised by the Central Armed Police Forces (CAPF) under the aegis of the All India Police Sports Control Board, is to be held in three centres here from May 2-9.The OORJA?CAPF Youth Under?19 Football Talent Hunt Tournament 2017, an initiative of Prime Minister Narendra Modi and featuring CRPF, BSF, CISF, SSB, ITBP and Assam Rifles, is being held at the behest of the Union Ministry of Home Affairs, a media release said today.The tournament is being held ahead of the FIFA Under- 17 World Cup scheduled to be held in India from October 6-28.”While emphasising on the successful hosting of the event, the Hon?ble Prime Minister has said that this alone cannot be our final objective. FIFA Under-17 World Cup must be a catalyst for change, the tipping point for football in the country, which can only be done by creating a mass movement around it,” the release said.All CAPF units have been asked to conduct the Oorja? CAPF Youth Under-19 tournament in different parts of the country.CISF is conducting the tournament in the states of Maharashtra, Goa, Telangana and Andhra Pradesh and in the Union territories of Delhi, Dadra and Nagar Haveli, besides Daman and Diu.In Mumbai, the opening ceremony is scheduled to be held on May 2 at the Cooperage football ground, which will also host the finals of both boys and girls categories on May 9.The preliminary league-cum-knockout matches will be held from May 2 at the JNPT Sheva Stadium (for boys) and RCFL Stadium, Chembur (for girls), respectively.advertisementThe winner of the tournament in the two categories would be awarded the Shankar Subramaniam Narayan Trophy, the release added. PTI SSR RSYlast_img read more

TSX falls as energy stocks fail to get lift from highest crude

first_imgTORONTO – Canada’s main stock market resumed its downward trajectory Wednesday as energy stocks failed to get a lift even though crude oil prices hit nearly a nine-week high.There was a disconnect as the overall market didn’t benefit from higher commodity prices because of uncertainty over NAFTA negotiations, said Candice Bangsund, vice-president and portfolio manager for Fiera Capital.“We’re not there yet and I think the market is just expressing a little bit of caution there and just waiting for some sort of tangible news on the NAFTA front,” she said in an interview.“That NAFTA overhang has really weighed on the index fairly generally and the hope is that we do get some sort of positive news on that front and likely could see a relief rally on Canadian stocks.”The S&P/TSX composite index closed down 45.23 points to 16,049.02, after hitting a low of 15,993.58 on 266.3 million shares traded. The decrease came a day after the market hit its first daily gain in September.Market heavyweights industrials, financials and energy all closed down.Gold, materials and base metals led on the positive because of a lower U.S. dollar and hope that a solution could be found in the U.S. trade dispute with China after a report said that the Americans were seeking new trade talks before even imposing new tariffs.“We find this to be fairly encouraging and I think the market is tentatively, cautiously optimistic so that’s why you’re not seeing a strong relief rally,” Bangsund said.Offsetting the hope was a down day in the United States for the market-heavy U.S. technology sector.In New York, the Dow Jones industrial average gained 27.86 points to 25,998.92. The S&P 500 index was up 1.03 points to 2,888.92, while the Nasdaq composite was off 18.24 points to 7,954.23.The Canadian dollar was trading at an average of 76.84 cents US compared with an average of 76.22 cents US on Tuesday.The gain came as the October crude contract was up US$1.12 at US$70.37 per barrel, the highest level since July 13.The improvement was driven by the U.S. producer price index posting its first monthly decline in 18 months, a weaker U.S. greenback against several currencies and concern about the impact of Hurricane Florence that is set to hit the U.S. southeastern coast.“On the oil front we saw a larger than expected weekly draw down in crude stockpiles so this is contributing to an already fairly tight crude market,” she added.The October natural gas contract was up 0.1 of a cent at US$2.83 per mmBTU.The December gold contract was up $8.70 to US$1,210.90 an ounce and the December copper contract was up 5.4 cents at US$2.68 a pound.last_img read more

Public comment now open for LNG facility on Vancouver Island

first_imgVANCOUVER B.C. – The Canadian Environmental Assessment Agency has to decide if a Federal Environmental Assessment is required for the proposed Kwispaa LNG facility.The project is being developed north of Bamfield on Vancouver Island.  The Federal Environmental Assessment agency is now seeking public input to help make this decision.This project would convert natural gas to LNG for export which would produce 24 million tons of LNG for at least 25 years. The Canadian Environmental Assessment Agency (CEAA) is looking for the public and indigenous groups comments in regards to the project and the potential effects on the environment by welcoming written feedback to be sent by letter or email.All comments must be submitted by November 18, 2018, and are considered public.  The CEAA will post on their website their decision. If an environmental assessment is required the public will have three more opportunities to comment.Please direct your comments to the following;Kwispaa LNG ProjectCanadian Environmental Assessment Agency410-701 West Georgia StreetVancouver, British Columbia V7Y 1C6Telephone: 604-666-2431Email: CEAA.Kwispaa.ACEE@canada.calast_img read more

CPSE ETF: Govt eyes `3,500 cr from fifth tranche subscription

first_imgNew Delhi: The fifth tranche of the CPSE Exchange Traded Fund will open for subscription on March 19, wherein the government seeks to raise at least Rs 3,500 crore. The fourth Further Fund Offer (FFO), which would be open from March 19-22, would help the government in mopping up funds towards meeting its disinvestment target of Rs 80,000 crore for the current fiscal ending March 31. According to Reliance Mutual Fund, which is managing the CPSE ETF, the fifth tranche would open for subscription on March 19, for anchor investors. Also Read – Thermal coal import may surpass 200 MT this fiscalNon-anchor investors, including retail investors, can put in their bids from March 20-22. This would be the second CPSE (Central Public Sector Enterprises) ETF FFO in the current fiscal after Rs 17,000 crore raised November 2018. So far, the government has raised a total of Rs 28,500 crore from rounds through CPSE ETF, including the first offer in March 2014 that mopped up Rs 3,000 crore. “The CPSE ETF is trading at very attractive valuations. As on February 28, the dividend yield of the index was as high as 5.52 per cent compared to 1.25 per cent for the Nifty 50… In addition, the government is also giving a 4 per cent discount to investors,” Reliance Mutual Fund Head (ETF) Vishal Jain said. Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boostThe ETF tracks shares of 11 Central Public Sector Enterprises (CPSEs) — ONGC, NTPC, Coal India, IOC, Rural Electrication Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN. Through the latest offer, the government aims to raise an initial amount of Rs 3,500 crore and the offer size could be raised, as per Reliance Mutual Fund. After raising Rs 3,000 through New Fund Offer (NFO) in March 2014, the government garnered Rs 6,000 crore from the first FFO of the CPSE ETF in January 2017. Subsequently. Rs 2,500 crore was mopped from the third tranche in March 2017 and Rs 17,000 crore from the fourth round in November last year. The government has raised Rs 56,473.32 crore through disinvestment till February 28, as against the target of Rs 80,000 crore for the 2018-19 fiscal.last_img read more

Inter-Creditor pact a non-starter: Debtors to SC

first_imgNew Delhi: Corporates opposing the RBI’s February 12 circular on loans resolutions have submitted to the Supreme Court that the Inter-Creditor Agreement (ICA) among banks as a possible debt resolution framework has failed to take off as the relevant institutions like LIC, HUDCO, IFCI, IIFCL, NIACL, SIDBI, GIC are not signatory to it. The companies have slammed the slow progress of the inter-creditor arrangement among the banks saying it is a non-starter due to the absence of relevant members even though the Reserve Bank of India (RBI) has endorsed its utility. Also Read – Thermal coal import may surpass 200 MT this fiscalThe ICA is seen as helping the debt defaulters to avoid bankruptcy proceedings and a possible debt resolution mechanism. The ICA is a non-starter because 49 out of 85 lenders (that is 58 per cent) have so far not signed the agreement even after the expiry of eight months, and 10 of the non signatories are government-owned financial institutions and major lenders in the Infrastructure sector –LIC, HUDCO, IFCI, IIFCL, NIACL, SIDBI, GIC, the pleaders’ their submission stated. “None of the Non Banking Financial Companies/Asset Reconstruction Companies (NBFCs/ARCs) are party to the ICA, without whom the agreement mechanism will not be effective,” the companies further added. Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boostThe petitioners said: “In its written submission, the RBI has endorsed the ICA as a possible debt resolution mechanism in its submissions to the Supreme Court, since it is aimed at helping debt defaulters to avoid bankruptcy proceedings and requires only 66 per cent approval of lenders.” Indian banks, who are trying to sell their troubled assets are part of the ICA. A group of banks, including public sector, private sector and foreign banks, signed an inter-creditor agreement in 2018 to push for the speedy resolution of non-performing loans on their balance sheets as per which a majority representing two-thirds of the loans within a consortium of lenders should now be sufficient to override any objection to the resolution process coming from dissenting lenders. Under ICA, minority lenders who suspect they are being short-changed by other lenders can now either sell their assets at a discount to a willing buyer or buy out loans from other lenders at a premium. The inter-creditor agreement is aimed at the resolution of loan accounts with a size of Rs 50 crore, anything above that are under the control of a group of lenders. It is part of the broader “Sashakt” plan approved by the government to address the problem of resolving bad loans. ICA Chairman Sunil Mehta is of the opinion that disagreement between joint lenders is the biggest problem in resolving stressed assets. Many debters and lenders believe that the holdout problem, where the objections of a few lenders prevent a settlement between the majority lenders, will be solved through the inter-creditor agreement. Such an agreement may persuade banks to embark more quickly on a resolution plan for stressed assets. This is an improvement on the earlier model, which relied solely on the joint lenders’ forum to arrive at a consensus among creditors. However, the companies approaching Supreme Court against the February 12 Circular on loan resolutions said this alternate mechanism is not taking off. Indian banks have been forced by the RBI to recognise troubled assets on their books, but their resolution has remained a challenge. Supreme Court has heard a bunch of petitions across the sectors — Power, Ship-building, Sugar, Telecom — opposing the RBI’s February circular. A two-judge bench of Justice Rohinton Fali Nariman and Justice Vineet Saran is hearing a bunch of petitions moved by power, sugar, and ship- building companies challenging the RBI’s circular. On February 12, 2018, the RBI had asked banks and other lenders to either execute a resolution plan for big stressed accounts or file insolvency petitions against them in the National Company Law Tribunal (NCLT).last_img read more

SC order quashing RBI circular to give relief to power cos but delay bankruptcy proceedings

first_imgNew Delhi: The Supreme Court order quashing a Reserve Bank of India circular on resolving bad debt will provide relief to power companies and lenders as well as flexibility to restructure debts but will slowdown bankruptcy proceedings, experts said Tuesday. The Supreme Court on Tuesday quashed RBI’s February 12 circular, which prescribed rules for recognising one-day defaults by large corporates and initiating insolvency action as a remedy. Also Read – India gets first tranche of Swiss bank a/c details Vishrov Mukerjee, Partner, J Sagar Associates said after the Supreme Court judgment, the RBI may have to issue revised guidelines/circulars for the restructuring of stressed assets. “There is also a question mark over existing processes which may have been completed/nearing completion,” he said. “However, with the threat of IBC proceedings mitigated, it will give some breathing space to power companies and lenders as well as flexibility to restructure debts in a manner which ensures continuity and value maximization for lenders as well as power companies.” Also Read – Tourists to be allowed in J&K from Thursday Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas, termed the ruling as a major development that shows how “proactive” the judiciary has been. “Whilst it’s too early to say but if banks voluntarily still invoke IBC – the practical impact will be minimal,” he said. ICRA senior vice president Sabyasachi Majumdar said the Supreme Court decision is likely to result in a further slowdown in the already tardy pace of resolution of stressed assets in the power sector. “This apart, the resolution process is in any case subjected to regulatory risks as exemplified in the case of the Prayagraj Power asset, where the regulator has given a recent directive for a discount in PPA tariff while allowing the shareholding change approval for the same,” he said. The RBI had on February 12, 2018, issued a circular on the resolution of stressed assets revised framework — commonly known as February 12 circular. According to the circular, lenders had to classify a loan account as stressed if there was even a day of default. The bankers had to mandatorily refer all accounts with over Rs 2,000 crore loans to the National Company Law Tribunal (NCLT) or the bankruptcy court if they failed to resolve the problem within 180 days of default. Lenders were supposed to file an insolvency application under the Insolvency and Bankruptcy Code 2016 within 15 days of the completion of the 180-day deadline. The circular also withdrew the loan resolution mechanisms the RBI had implemented, such as Corporate Debt Restructuring and Strategic Debt Restructuring. Power sector was the worst hit by the circular and so were companies in steel, textile, sugar and shipping sector. GMR Energy Ltd, RattanIndia Power Ltd, Association of Power Producers (APP), Independent Power Producers Association of India, Sugar Manufacturing Association from Tamil Nadu and a shipbuilding association from Gujarat moved different courts against the circular. The power sector argued that outstanding loans of Rs 5.65 lakh crore (as on March 2018) were a result of factors beyond their control such as unavailability of fuel and cancellation of coal blocks. The Supreme Court Tuesday held that the circular was ‘ultra vires’ — meaning it went beyond the scope of what the RBI can do when coming up with rules and regulations. Mukerjee said the Supreme Court verdict along with recent government decisions implementing the recommendations of the High-Level Empowered Committee will provide much needed respite and impetus to regulatory reform in the power sector.last_img read more

We do politics with positive thinking: Tiwari

first_imgNEW DELHI: Delhi BJP chief Manoj Tiwari on Saturday said the BJP only does positive politics with positive thoughts. “We never adopt negative thoughts and we are in politics with positive thinking with the motto of Sabka Saath, Sabka Vikas under the leadership of Prime Minister Narender Modi,” said Tiwari.He added that for a BJP worker the country is first and the party is second. “On the one hand, political parties speak lies, hatch conspiracies but on the other Prime Minister Narender Modi is working hard to make India the world leader. BJP is committed to the all round development of the country with nationalistic thinking,” Tiwari said. He said, Arvind Kejriwal has become a curse for lakhs of poor people of Delhi because by obstructing the implementation of Aayushman Bharat he has put the lives of lakhs of poor people in danger.”last_img read more

‘139 FIRs and DD entries against political parties’

first_imgNEW DELHI: As many as 139 FIRs and daily diary (DD) entries have been registered till date against various political parties and others for violation of the model code of conduct in the run up to the Lok Sabha polls, the poll body in Delhi said on Wednesday. The statistics surveillance team of Delhi’s Chief electoral office constituted to keep an eye on the expenses of political parties, has seized Rs 1.38 crore in cash and also seized 266.318 kg of narcotics and drugs. “A total of 139 FIRs or DD entries have been lodged till date in connection with the violation of the model code of conduct,” Delhi EO Ranbir Singh told reporter Also Read – After eight years, businessman arrested for kidnap & murder”Out of these, 15 are against the Aam Aadmi Party(eight FIRs and seven DD entries), 19 against the Bhartiya Janata Party (nine FIRs and four DD entries), four against the Congress (all DD entries), one against the Bahujan Samaj Party (one DD entry), Samajwadi Party (one DD entry), and 95 against others or non-political (entities),” the CEO office said. The office of the Delhi CEO said more than 2.87 lakh posters, banners and hoardings have been removed since the poll code came into force. “As many as 29,3809 posters, banners and hoardings were removed from all over Delhi, out of which 30533 aree removed from the New Delhi Municipal Council, 43,075 from East Delhi Municipal Corporation areas, 2,411 from Delhi Cantonment Board, 11 8456 from South Delhi Municipal Corporation, and 99,334 from North Delhi Municipal Corporation areas,” the statement said.last_img read more