Coronavirus impact: ONGC to lose Rs 4,000 crore with the new gas price

For every $1 dollar change, the company’s revenues are impacted by Rs 4,400-4,500 crore annually.

State-owned Oil and Natural Gas Corp (ONGC) will lose about Rs 4,000 crore in revenue and start making cash losses after the government slashed the natural gas prices by a steep 26 per cent by benchmarking it against rates prevalent in gas-surplus nations.

Prices of natural gas, which is used to produce fertilizer, generate electricity and gets converted into CNG for use in automobiles and piped natural gas for household cooking, was from April 1 cut to $ 2.39 per million British thermal unit – a rate about 37 per cent lower than the cost of production. “These rates are unsustainable for us. We have already told the government that the gas pricing should be freed. There should be complete pricing and marketing freedom,” ONGC Chairman and Managing Director Shashi Shanker told PTI here.

The BJP-led government had in October 2014 evolved a new pricing formula using rates prevalent in gas surplus nations like the US, Canada, and Russia to determine the price in a net importing country. Prices using this formula are calculated semi-annually. Oil Minister Dharmendra Pradhan, in a written reply to a question in the Lok Sabha on March 20, 2017, had stated that the cost of production of natural gas in the prolific Krishna Godavari basin is between $ 4.99 -7.30 per mmBtu. The same for other basins is in the range of $ 3.80 -6.59 per mmBtu, he had said…Read More

SBI lowers lending rate by up to 15 bps; 10th cut in current fiscal

Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45 per cent each. Three-month MCLR has been revised to 7.50 per cent from 7.65 per cent

The country’s largest lender State Bank of India (SBI) on Wednesday said it has reduced its marginal cost of fund-based lending rate (MCLR) by up to 15 basis points across various tenors, effective March 10. The bank has reduced its one-year MCLR by 10 basis points to 7.75 per cent from 7.85 per cent earlier, the SBI said.

This is 10th consecutive cut in MCLR by the bank in the current fiscal. Overnight and one-month MCLRs have been reduced by 15 basis points to 7.45 per cent each. Three-month MCLR has been revised to 7.50 per cent from 7.65 per cent. The new two-year and three-year MCLRs stand reduced by 10 basis points to 7.95 per cent and 8.05 per cent, respectively.

On Monday, another state-run lender Union Bank of India had announced cut in its MCLR by 10 basis points across all tenors, effective March 11. This is the ninth consecutive rate cut announced by the Mumbai-based bank, since July 2019. The bank has cut its one-year MCLR to 8 per cent from 8.10 per cent. The overnight MCLR has been revised to 7.55 per cent, while the new one month rate stands at 7.60 per cent, the bank had said.

One rupee: The value that foreign brokerages attach to the YES Bank stock

Macquarie Capital Securities also said if State Bank of India (SBI) decided to buy stake in the bank, they should buy it at Rs 1 per share as the net worth is hugely impaired

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Company News: Jp morgan reduces its target fee for yes bank on Thursday to rs 1 consistent with proportion, taking into consideration the potential fall in the lender’s net well worth because of burdened property. Macquarie capital securities also stated if the nation’s financial institution of India (sbi) decided to shop for stake inside the financial institution, they should buy it at rs 1 in keeping with share because the net well worth is highly impaired.

“we consider forced bailout traders will in all likelihood need the bank to be acquired at near-0 fee to account for risks related to the pressure e-book andProbable lack of deposits. we think the financial institution will need to be recapitalised at nominal equity price and could check dilution of additional tier 1 (at1) capital. we continue to be underweight and reduce our goal rate to rs 1 as we consider internet well worth is largely impaired,” jp morgan stated.

Explaining its reasons for the meagre rate for yes bank shares, macquarie stated the bank has a net well worth of rs 25,000 crore. but, its bb and underneath rated loan portfolio is approximately rs 30,000 crore and the bbb beneathBook is sort of rs 50,000 crore. “if we expect giant part of bb and beneath is wiped off, and say 10-15 in step with cent of the bbb ebook is to be written off, it implies the current net worth of the bank is 0 (after factoring in 25 in line with cent of the tax benefits),” it stated. Chartyes financial institution’s shares soared 26 per cent to rs 36.eighty five on thursday after reviews said that sbi-led consortium might purchase a sizeable stake inside the financial institution. but the share price might not keep at modern-day degrees if these brokerages’Projections flip authentic.

Jio, UVARC emerge top bidders for RCom assets with bids worth Rs 21,000 cr

Delhi-based UVARC has offered to pay about Rs 16,000 crore for the spectrum, real estate, and enterprise and data centre businesses of RCom and Reliance Telecom, which houses these assets

Mukesh Ambani’s Reliance Jio Infocomm and Delhi-based UV Asset Reconstruction Company (UVARC) are learnt to have emerged the highest bidders for the assets of Reliance Communications (RCom) and its subsidiaries, according to banking sources.

The combined bid amount is Rs 21,000 crore. The Anil Ambani-run company went through the insolvency process, and was referred to the National Company Law Tribunal (NCLT) in May last year after an offer from Reliance Jio to buy its assets did not find favour with the creditors. The conditions imposed by the department of telecommunications too were a hindrance.

The resolution professional (RP) was appointed in June. Sources say in a meeting of the committee of creditors (CoC), which ended late in the evening on Monday, Reliance Jio, part of Reliance Industries, agreed to marginally up its earlier offer and is willing to pay about Rs 4,700 crore for the tower and fibre assets of Reliance Infratel.

Delhi-based UVARC has offered to pay about Rs 16,000 crore for the spectrum, real estate, and enterprise and data centre businesses of RCom and Reliance Telecom, which houses these assets. The bidders are believed to have committed themselves to paying 30 per cent of the proceeds within 90 days. Email queries sent to Reliance Jio and UVARC did not elicit any response. An email to RP Anish Nanavaty also went unanswered.

NTPC may shell Rs 10,000 crore for Centre’s stake in NEEPCO, THDC: Report

The Centre holds entire 100% stake in NEEPCO and has 75% holding in THDC

Country’s largest power producer NTPC may make an aggressive bid of about Rs 10,000 crore to buy out the Centre’s stake in two hydro power producing companies – NEEPCO and THDC, two persons having knowledge of the development said.

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared strategic disinvestment in the two hydroelectric power generating PSUs in favour of NTPC that is looking to expand its operations and boost the renewable portfolio.

One of the persons quoted above said that the thermal power generator may offer close to Rs 10,000 crore though the transaction advisor will come to valuations about the entities later. The portfolio of projects with the NEEPCO and THDC make it a fit case to command good value.

The Centre holds entire 100 per cent stake in NEEPCO that operates close to 1,500 MW of power plants in the northeastern region, and has 75 per cent holding in THDC. The Uttar Pradesh government holds the balance 25 per cent stake in THDC India.

The stake sale would be only disinvestment proposal this year where a state-owned entity would pick up government equity in another public sector undertaking (PSU). In the case of BPCL disinvestment, the government is eyeing a private sector global MNC to take its entire equity….