Plans to revive ABG Shipyard, Alok Industries and Lanco could fail, despite that fact that Alok received a bid from Reliance Industries (RIL).
The ordinance that comes as a blow to defaulting promoters seeking to reclaim their firms that are under insolvency proceedings, aims at putting in place safeguards to prevent unscrupulous persons from misusing or vitiating the provisions of the IBC
The first set of six troubled accounts are Bhushan Steel (Rs 44,478 cr), Essar Steel (Rs 37,284 cr), Bhusan Power and Steel (Rs 37,248 cr), Alok Industries (Rs 22,075 cr), Amtek Auto (Rs 14,074 cr) and Monnet Ispat (Rs 12,115 cr), a banker said.
NPA crackdown: Read here for financial details of these 12 big loan defaulters likely to go for bankruptcy
Monnet Ispat had a debt of over Rs 10,000 crore while its net worth turned negative to Rs 1,602 crore in FY17
The RBI has yet to officially name any of the 12 companies, which account for about 2 trillion rupees ($31 billion) of India's non-performing loans, or roughly 25 percent of all the country's bad loans.
To attract foreign direct investment and boost defence manufacturing in the country, which imports up to 70 percent of its military hardware, the government has raised the FDI cap to 49 percent.
After facing competition from Hero Group for one of India's leading shipyards Pipavav Defence, Mahindra is looking to buy a stake in ABG to expand its land and naval defence equipment.
Largest private sector shipbuilder ABG Shipyard, which is under a CDR, will receive Rs 650 crore infusion from lenders by this month-end as part of the Rs 10,000-crore debt recast deal worked out in March, a top company official has said.
The ministry has been setting aggressive targets for capacity expansion every fiscal, with an eye on the targets set in the maritime agenda, under which certain targeted capacity needs to be created by 2020.<br /><br />
The trade unions are demanding that the ministry should have a rethink over the issue and allow it also to take part in the tender.
Shares of a host of mid-cap and small-cap companies today crashed in the stock market, plunging as much as 60 percent in some cases, amid panic selling on speculations of sale of pledged shares.
Private sector ship-builder ABG Shipyard today said it has bagged a Rs 485 crore order to build a cadet training vessel for the Navy.
Though DLF has moved up over the last two days, there is room for more. GMR Infrastructure said on Monday that it will be selling 30 percent stake in its unit GMR Energy (Singapore) Pte to Petronas.