Latest news with #SpecialPurposeVehicle
The Citizen
25-06-2025
- Business
- The Citizen
ELM salaries paid after Rand Water lifts attachments
Emfuleni municipal employees and councillors were paid on time this month after intensive negotiations with Rand Water (RW), which had last week attached the bank accounts of the local authority over billions in unpaid debt. Now, RW and the Emfuleni Local Municipality (ELM) are looking towards the implementation of a new agreement and restructuring of their functioning to avoid future situations of this kind. ELM has confirmed salaries were paid on time – June 25. Political sources said severe pressure on RW with its own financial year-end had led to its decision last week to attach ELM bank accounts. The attachments reportedly took place last week already, leading to severe political criticism of ELM which allegedly did not inform Council members about the development. Employees were earlier bracing themselves for severe financial disruptions as has happened several times over the past few years due to bank attachments by both RW and Eskom. RW and ELM have already received approval for a Special Purpose Vehicle (SPV) re-organisation of its entire water management sphere but this has not yet taken place despite approval being granted recently by the National Treasury. Once implemented, this will place ELM water infrastructure and revenue management on a completely new basis – similar to the ground-breaking move which placed ELM electricity management on a new footing through appointing Eskom as ELM's agent. ELM says it is still awaiting its formal authorisation letter from National Treasury on the SPV approval, whilst RW has reportedly already received its authorisation letter. An entirely new management structure with its own name and CEO is envisaged in terms of the RW/ELM SPV. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Time of India
18-06-2025
- Business
- Time of India
A 50% stamp duty concession for land transactions under MMRDA's Pen township project
MUMBAI : The Maharashtra Cabinet on Tuesday approved a 50 per cent concession in stamp duty for land transactions linked to the state's first large-scale urban project being executed under a public-private partnership (PPP) model. The project will be implemented by the Mumbai Metropolitan Region Development Authority ( MMRDA ) and Raigad Pen Growth Centre Ltd in Pen taluka . This move will promote investment and generate employment opportunities, the Chief Minister's Office (CMO) stated. Chief Minister Devendra Fadnavis chaired the meeting of the council of ministers, it said. The stamp duty payment concession applies to land agreements required for the integrated township project being developed under the New Town Development Authority (NTDA) in Pen taluka. According to the statement, the project spans approximately 1,217.71 acres and is being executed through a Special Purpose Vehicle (SPV) as per MMRDA's integrated township policy. Once operational, the growth centre is expected to house fintech firms, educational and healthcare institutions, entertainment hubs, affordable housing, commercial zones, retail markets, and construction-related industries. Described as Maharashtra's first large-scale, world-class urban project under the public-private partnership (PPP) model, it is also anticipated to attract substantial foreign investment. In the long term, the state government expects to receive increased revenues through stamp duty and taxes from commercial activity generated by the development, the CMO said. The cabinet also approved a stamp duty waiver for the transfer of land to the Maharashtra National Law University (MNLU) in Mumbai. A total of 1,41,640.40 square meters of land at Pahadi in Goregaon (west) has been earmarked for the permanent campus of MNLU, currently operated from rented premises in Powai. This decision will facilitate the development of a permanent and integrated campus, enhancing the educational infrastructure in Mumbai.
Deccan Herald
06-06-2025
- Business
- Deccan Herald
Insolvency regime needs hard reform
The Supreme Court's recent annulment of JSW Steel's Rs 19,700-crore acquisition of Bhushan Power and Steel Ltd (BPSL) under the Insolvency and Bankruptcy Code (IBC) has reignited a deeper question about the balance between legal form and economic function. The Court's reasoning was sound: material deviations from the approved resolution plan were made without returning to the Committee of Creditors (CoC) or the NCLT for consent. Legally, the process mattered. But the implications of this decision go far beyond legality. They touch the foundations of India's financial case serves as a reminder that while India's insolvency regime has made significant progress, the broader financial infrastructure on which it relies remains incomplete. The JSW-BPSL outcome isn't a failure of law; it's a signal that the institutions surrounding it must evolve to support more complex economic resolution plan used a Special Purpose Vehicle, a standard acquisition structure, and financed part of the deal through Optionally Convertible Debentures, an established instrument globally. Yet, under Indian insolvency procedure, such post-approval changes must receive renewed creditor and tribunal consent. The absence of that step rendered the plan invalid, despite repayment having message isn't one of malfeasance or manipulation, but of a system that hasn't yet adapted to the evolving needs of modern restructuring. JSW acted within widely accepted financial logic but discovered that process constraints flexibility. The broader lesson is that strategic capital may hesitate to engage with distressed assets unless resolution mechanisms allow for well-regulated innovation. That holds consequences not only for bidders but also lenders, employees, and the JSW case reveals the need for deeper institutional capacity in insolvency governance. The CoC, composed mainly of banks, brings financial skin in the game, but often lacks the commercial restructuring expertise to evaluate unconventional plans. Meanwhile, the NCLT, pivotal to resolution, continues to face resource to advanced economies, where restructuring decisions are shaped by capital market actors, specialist advisers, and commercial courts, India's process leans heavily on legal formalism. India must bring in independent expertise and strengthen the interplay between legal and financial perspectives to enable effective resolution. Encouragingly, these gaps are not insurmountable; they are reform out, this episode reflects a broader challenge in India's financial evolution. The post-liberalisation decision to convert Development Finance Institutions into commercial banks was bold, but it assumed the rise of a vibrant corporate bond market. That market remains most long-term credit still flows through banks and NBFCs, intermediaries not designed to handle complex risk-pricing over time. Corporate bond issuances are often private, illiquid, and difficult to trade. The result is that bankruptcy resolution ends up doing work that well-functioning capital markets would normally share: absorbing risk, repricing assets, and enabling JSW case demonstrates that even when operations resume and creditors are paid, a procedural lapse can unwind a resolution. For capital to engage sustainably, investors need assurance not just of legality, but of must solution is not to weaken the IBC but to fortify it with institutional and market reforms. A regulated, liquid secondary market for distressed debt would allow for dynamic pricing, risk-sharing, and investor entry without the delays of judicial vital is enhancing the capability of the NCLT. Resolution decisions with major economic impact should benefit from commercial expertise and capital market insight. The process must evolve beyond a legal tribunal into a financially informed once a resolution plan is approved and executed in good faith, it should enjoy legal stability, subject to apparent exceptions like fraud. This would strengthen investor trust. And as India continues its financial modernisation, it's worth reconsidering the current ban on leveraged buyouts, which are globally standard tools that, if properly regulated, can enable efficient asset thoughtful financial structuring should be seen not as a risk, but as a route to economic recovery. Mergers and acquisitions during insolvency are not loopholes but part of the JSW-BPSL episode is not a story of legal overreach or corporate miscalculation; it is a moment of reckoning for how far India's financial ecosystem has come and how much farther it needs to go. It calls for the next chapter of reform: one that builds out institutional capacity, deepens capital markets, and ensures that law and finance move in step, not in conflict. India has made bold strides in building an insolvency regime. With the right reforms, the regime can now deliver not just resolution but real renewal..(The writer teaches finance at IIT Kharagpur)
Hindustan Times
04-06-2025
- Business
- Hindustan Times
Dharavi redevpt: State tweaks norms for use of Kurla dairy land
MUMBAI: A year after allotting 8.5 hectares (21 acres) of the state-owned Mother Dairy plot in Kurla for rehousing residents of Dharavi who will not be eligible for in-situ housing once the slum goes in for redevelopment, the state government has granted several relaxations to the Special Purpose Vehicle (SPV) -- comprising government of Maharashtra's Dharavi Redevelopment Project (DRP) and the Gautam Adani-owned Navbharat Mega Developers Pvt. Ltd (NMDPL), formed in January 2024 to transform Dharavi -- to utilize the plot. The decision was taken in the state cabinet meeting on Tuesday. The major reliefs include allowing transfer of development rights (TDR) on the land in lieu of constructing housing for slum-dwellers following the provisions of 33 (10) (A) of Development Control and Promotion Regulations (DCPR) 2034, permission to develop commercial components and their sale in the open market, said people in the know. On June 14, 2024, the state government approved the transfer of the dairy plot for the project. The land was granted by charging only 25 percent of the ready reckoner rates on grounds that it was of vital public importance. The plot was granted under Occupancy Class II category of Maharashtra Land Revenue Code, which gives conditional ownership to the occupant – which means the occupant cannot sell the land or sub-lease to a third party. The plot however can be segmented and amalgamated by seeking prior permission from the state government. These conditions have now been relaxed, revealed insiders. 'The state government has made all the provisions under 33(10)(A) of the DCPR 2034 applicable to the plot,' a senior official told Hindustan Times. 'It has also allowed the SPV to load TDR on the plot and construct commercial components there for sale,' he added. 'To facilitate the implementation of the project, the terms and conditions in the earlier resolution (issued on June 14, 2024) and the draft agreement by the Mumbai suburban district collector have been approved for alignment with the policies of the housing and urban development department. This will help maximize the availability of housing for the rehabilitation of Dharavi residents,' stated a release issued by the chief ministers' office (CMO) on Tuesday. 'Around 8.5 lakh families will be rehabilitated under the redevelopment project, of them, 5 lakh eligible families will be rehabilitated within Dharavi itself. Additional land is required to rehabilitate the remaining 3.5 lakh families. The availability of land in Kurla will help make this process easier and more feasible,' it stated further. Dharavi spans 620 acres, of which 296 acres have been earmarked for redevelopment.
Time of India
29-05-2025
- Automotive
- Time of India
India's ambitious e-bus drive faces component supply constraints, financing hurdles
HighlightsMaharashtra may cancel ₹10,000 crore e-bus order with Olectra due to major delivery delays. E-bus makers face supply shortages for key parts from China and the US. No rival suppliers are ready to fulfil large state orders on short notice. OEMs like Switch are boosting localisation and scaling production to tackle supply issues. India wants to quickly transition to green public transportation and has set itself an ambitious target of deploying 50,000 e-buses by 2027. An overwhelming procurement of 90% of these e-buses is to be done by various state governments instead of private operators. But supply chain issues, specifically for components coming from China, continue to be a roadblock in this ambitious plan. There are other challenges too, including access to financing and infrastructure readiness. Earlier this week, news reports suggested that the Maharashtra government has decided to cancel a large order for supply of e-buses due to inordinate delays in supplies. State transport minister Pratap Sarnaik said as much on X, though he did not name the supplier. The contract was signed between the state government and a Special Purpose Vehicle (SPV) , which comprises Olectra Greentech and another group company, and it was inked for supply of 5,150 electric buses to the state government in 2023. Reports suggest that less than 250 buses have been delivered till date and the contract had been revised once earlier, with the supply timelines eased. So what went wrong? Supply challenges for chassis and battery components have been severely affecting the manufacturing of electric buses, not just for the Olectra SPV but for much of the e-bus ecosystem in India. Another industry player said he was negotiating with a European company for a partnership to enter the 9 metre electric bus segment in India, while pointing out the continued supply challenges for battery and chassis components besides magnets. 'Everybody is getting affected, all major electric bus OEMs are getting affected. China and the USA - major suppliers of some of the components - have been flexing their muscles but I believe eventually, things will get sorted out,' this person said. We have navigated supply chain challenges through robust planning and favorable geopolitical developments. We rely on trusted partners for important EV components, battery, motors, and power electronics. We closely work and collaborate with partners to manage the Babu Mahesh Babu, CEO Switch Mobility , another electric bus manufacturer with an order book of 2921 units last fiscal (of which 982 had been delivered), said his company has been investing in local battery assembly and in strengthening logistics partnerships to increase localisation and reduce supply chain vagaries. 'We have navigated supply chain challenges through robust planning and favorable geopolitical developments. We rely on trusted partners for important EV components, battery, motors, and power electronics. We closely work and collaborate with partners to manage the challenges. We are also investing in local battery assembly, pursuing long-term contracts with suppliers and strengthening logistics partnerships, with over 65% localization in manufacturing and plans to increase this to 90% aligning with the 'Make in India' vision.' Also read: Karnataka to receive 4,500 electric buses under PM e-Drive scheme Over 90% of e-bus procurement is currently driven by state governments and public transport corporations (STUs), supported by central schemes like FAME-II and new initiatives under PM e-Bus Sewa and PM e-Drive . State governments have no option But even as different e-bus makers are trying to innovate and also address the supply constraints by developing a local vendor base, there really appears to be little the state governments can do to get the e-bus orders in time! While Olectra says it is yet to receive any intimation about the cancellation of the MSRTC order, in a subsequent discussion with analysts, the company's CFO B Sharatchandra did not seem perturbed by the impending cancellation. When asked whether it was fair to assume that if MSRTC were to cancel the order, there were no competing suppliers who could step up and fulfil the order in the timeline decided, he said 'I think you are right. Yes, you can assume. So, obviously, everybody has got capacity constraints and our product, as you rightly said, has got an edge in terms of technology and in terms of performance over the competition. So, we hope, as Hanuman (company secretary) has clarified to earlier queries, we are optimistic that there will not be any negative impact on account of this'. In other words, Olectra SPV's loss is unlikely to be a competitor's gain. The Olectra officials also admitted that delays in procuring powertrain components relating to battery and some of the components relating to chassis have hampered production of e-buses but again alluded to the delays in deliveries of e-buses by the entire industry to drive home the point that supply chain limitations are universal. The MSRTC order was labelled as one the world's largest e-bus procurements and was worth Rs 10,000 crore. The initial agreement for e-bus supply was later amended to reduce the number of buses to be supplied, due to inability of the SPV to meet the targets. At present the contract execution is under process and as per the clarification provided by EVEY they haven't received any such order as of Greentech consortium A consortium of Olectra Greentech Limited and EVEY Trans Private Limited was awarded this contract by the MSRTC for 5,150 Electric Buses and allied Electrical and Civil Infrastructures on Gross Cost Contract (GCC) basis. And that EVEY Trans is executing this contract with MSRTC through the SPV. 'At present the contract execution is under process and as per the clarification provided by EVEY they haven't received any such order as of now.' Meanwhile, in answer to another question, the Olectra CFO admitted that the company's total backlog was 'quite severe. We have orders of, I think more than 4,500 (e-buses)...pending and another 5,000 with MSRT, which we have to deliver in the next, I believe 18 months'. The company plans to ramp up production by deploying robotics in Q4 of FY26. Also read: Electric two wheeler sales cross a million units in FY25 but growth is slowing down Switch to double volumes Babu of Switch mobility said that the company's goal was to double volumes and revenue annually over the next three years, supported by a robust order pipeline exceeding 1,800 electric vehicles, including international orders such as from Mauritius. 'We are scaling up production and expanding our service network with 18 exclusive bus service outlets and 50+ dealer points across India.' Beyond battery and motor supplies, Babu listed out some other challenges being faced by the electric bus OEMs: Charging Infrastructure, customization complexity alongside diverse city requirements, shortage of skilled workforce, and access to financing and infrastructure readiness, especially in tier 2 and 3 cities.
