Government seeks data on loans to telecom, aviation and power sectors

Mumbai: Concerned that some corporates are over-leveraged, the government has asked banks to provide data on borrowings in telecom, aviation and power sectors. Interestingly, all the three sectors for which the finance ministry has sought information are in the middle of some kind of political or financial crisis. The government wants the data within a week.
The ministry has sought information on the loan sanctioning date, loan types, amount sanctioned and disbursed and stressed loans.
It has also asked for information on state power utilities, which are reeling under distribution losses and mounting coal prices.
The government might use the statistical information on aviation to gauge problems faced by the sector, particularly by national carrier Air India, which is struggling to pay staff salaries and repay bank debts, bankers said. Air India has more than Rs 45,000-crore debt on its books. It has urged for capital from the government, even as it recently received equity capital of Rs 1,200 crore.
Bankers said information on power sector is sought due to complaints received by the government that several corporates have not been allocated coal for setting up power projects.
13/08/11 Sangita Mehta/Economic Times

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Categories: Indian Aviation- In General Aug 2011