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<ul><li>The government is looking to increase the accountability of promoters towards their defaulted loans. </li><li>To this effect, the government could amend its bankruptcy law which will allow banks to invoke personal guarantees given by promoters for loans to their companies. </li><li>An appellate court had earlier disallowed such a move, in a case involving the Ruias and their bankrupt Essar Steel. </li></ul> India’s Finance Ministry is sitting on a new amendment to the bankruptcy law. That might be a big setback for the Ruia family, the promoters for the bankrupt Essar Steel, and others who gave personal guarantees against bank loans. As per the current resolution process, lenders can recover a certain portion of the dues from the bankrupt company. The proposed amendment targets personal guarantors to corporate debt. Once amended, the law will allow lenders to recover some ‘more money’ from such guarantors, according to sources who added that the Finance Ministry’s approval is likely in the next few days. A recent ruling by the National Company Law Appellate Tribunal (NCLAT) had disallowed a similar appeal by Essar Steel’s lenders. “Once the debt payable by the ‘Corporate Debtor’ stands cleared in view of the approval of the plan by making payment in favour of the lenders (‘Financial Creditors’), the effect of ‘Deed of Guarantee’ comes to an end as the debt stands paid,” the NCLAT order had said. ”The ‘financial creditors’ in whose favour guarantee were executed as their total claim stands satisfied to the extent of the guarantee, they cannot reagitate such claim from the Principal Borrower,” it added. But the government is intent on ensuring that banks get as much money back as they can, even if it is from the promoter’s personal assets. “If the government is proposing amendments in this space by way of amendment in the IBC (Insolvency and Bankruptcy Code) and if that is so, it would need a parliament approval. We will have to wait and see the nature of amendments to be sure whether parliamentary approval is needed or not. Secondly, I am sure that promoters of various corporate debtors will test any such amendment in a court of law,” said Kunal Tandon, a lawyer who has represented banks in bankruptcy cases. "The matter is subjudice and recovery amounts haven’t yet been crystallised. Hence it is premature to comment," an Essar Group spokesperson told Business Insider. This will be the second change to the bankruptcy law in the last three months In July, the NCLAT approved ArcelorMittal’s ₹42,000-crore ($6 billion) offer for Essar Steel. However, the NCLAT also held that financial creditors (banks) at par with operational creditors (unpaid suppliers, vendors etc). This would have reduced the banks’ share of proceeds from the sale amount. But the government argued that the ruling was against the spirit of the bankruptcy law and process. So it brought in an amendment soon after that allowed the banks to decide how the proceeds of the resolution will be distributed. SEE ALSO: <a href="https://www.businessinsider.in/nclat-clears-arcelormittal-bid-for-bankrupt-essar-steel/articleshow/70071681.cms" data-type="tilCustomLink" target="_blank">ArcelorMittal's bid for the bankrupt Essar Steel clears another hurdle that will give banks 60% off their dues-- butthe appellate order has done something more</a> <a href="https://www.businessinsider.in/a-slowing-indian-economy-is-clouding-over-arcelormittals-6-billion-bid-for-essar-steel/articleshow/71004519.cms" data-type="tilCustomLink" target="_blank">A slowing Indian economy is clouding over ArcelorMittal's $6 billion bid for Essar Steel</a>

EXCLUSIVE: New amendment to bankruptcy law has Prashant Ruia’s personal guarantee on its radar

To clean up <keyword id="142154" type="UNKNOWN" weightage="80" keywordseo="bad-loans">bad loans</keyword> and meet government-stipulated performance targets for the year, <a href="http://www.businessinsider.in/searchresult.cms?query=state-run+banks+">state-run banks</a> are selling the second-biggest tranche of bad loans in a quarter. 
 They are offering loans worth Rs 30,000 crore to asset restructuring companies (ARCs). Lilliput Kidswear, Corporate Power, S Kumars Nationwide and <keyword id="1387346" type="UNKNOWN" weightage="80" keywordseo="Essar-Bulk-Terminal">Essar Bulk Terminal</keyword> are among a dozen companies whose loans are part of the sale. 
 People, who are aware of the development, said auction for the identified assets would be done in the next few weeks as potential buyers are expected to bid at prices higher than in the previous rounds in the backdrop of the <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword> showing signs of revival. 
 
They further said Neptune Developers, Shiva Holdings, Salasar Steel and Power, and Nitco Tiles are on the block. <a href="http://www.businessinsider.in/searchresult.cms?query=Central+Bank+of+India+">Central Bank of India</a> tops the list of sellers with Rs 3,500 crore worth of loans, followed by <a href="http://www.businessinsider.in/searchresult.cms?query=Oriental+Bank+of+Commerce+">Oriental Bank of Commerce</a> at Rs 1,200 crore. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Punjab+National+Bank">Punjab National Bank</a>, which has been out of the market for bad loans, returns after at least 3 years with Rs 1,500 crore of loans. This is the highest sale of bad loans since the last quarter of fiscal 2014 when 40 banks had put on the block loans worth Rs 42,800 crore. 
 
According to one of the bankers, a number of loans from infrastructure sector such as power, steel and port would be auctioned. 
 
Indian banks, which have been postponing recognition of bad loans by either restructuring, or ever-greening, do not have such incentives any more as the regulator is getting strict in recognising defaults as such. Furthermore, the government which has stipulated performance parameters for investing more capital, has also said that bad loans need to be brought down if a bank is interested in receiving capital. 
 
Stressed assets - aggregate of restructured loans and gross bad loans of state-run banks - has touched Rs 7.12 lakh crore, or 13.2%, of total loans as on March 2015, shows <a href="http://www.businessinsider.in/searchresult.cms?query=RBI+">RBI</a> data. 
 
(Image: Indiatimes)

Offering loans to clean up bad loans! State-run banks to issue loans worth Rs 30,000 crore to ARCs

New Delhi, Feb 17 () The Committee of Creditors of Reliance Communications on February 24 will put to a vote asset bids received from UV Asset Reconstruction Company and Reliance Jio from which lenders are expected to recover around Rs 23,000 crore, according to sources privy to the development. UV Asset Reconstruction Company is learnt to have placed a bid of around Rs 14,700 crore while Reliance Jio has made an offer of Rs 4,700 crore for tower and fibre assets of Reliance Infratel Ltd. There will also be claw back of Rs 4,300 crore of priority payments made to Chinese and Indian creditors. "With this resolution plan, the 38 lenders of RCom will recover over 70 per cent of their outstanding of about Rs 33,000 crore. In the case of Bhushan Steel and Essar Steel, the recovery to lenders was 63 per cent and 60 per cent, respectively, as per the IBBI website," the source said. "Loans of Chinese lenders to reduce by nearly 65 per cent i.e. by Rs 8,000 crore from about Rs 12,000 crore to around Rs 4,000 crore," a banking source aware of the process said. Jio placed bid for tower and fibre assets of Reliance Infratel Ltd. (RITL) and UVARC for assets of RCom and Reliance Telecom Ltd. RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around Rs 49,000 crore in August. RCom has put all of its assets on sale which include spectrum holding of 122 MHz, tower business, optical fibre network and data centres. "The bidders have committed to pay 30 per cent of the proceeds of around Rs 7,500 crore within 90 days," the source said. As per the NCLT order, the CoC had to complete the entire process by January 10 but it sought extension in deadline. The Resolution Professional (RP), Deloitte, is expected to file resolution plan with the NCLT Mumbai on March 5. RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but the deals did not crystallise. Reliance Jio cancelled agreement to buy RCom assets, including spectrum, as it did not want to bear the past liabilities of the debt-ridden firm. Later, the insolvency proceedings against RCom started on a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues. PRS MRMR

RCom CoC to vote on Rs 23,000 cr resolution plans on Feb 24

MUMBAI: For over a year, promoters and executives of power companies and their lenders had sleepless nights, wondering what the <keyword id="6354977" type="ORGANIZATION" weightage="100" keywordseo="Supreme-Court">Supreme Court</keyword> would decide about coal blocks allotted to them. 
 
On Wednesday, their worst fears came true when the apex court cancelled all but four of the 218 coal blocks allocated since 1993. While industry experts lauded the verdict as a precursor to coal sector reforms, the nightmare for the power companies isn’t over yet. 
 “We are relieved that the uncertainty is over. But now where do plants attached to these mines get coal from? What happens to the expenses already incurred? The government needs to give clarity on the modus operandi,” said Sushil Maroo, a director of Essar Energy and CEO of <keyword id="6440383" type="COMPANY" weightage="80" keywordseo="Essar-Power">Essar Power</keyword>. The company stands to lose three coal blocks. 
 
Companies had expected the court to take a more lenient view on the 40 coal mines that had started operations and not cancel them. Instead, the court gave companies with operational mines six months to transfer their assets to the government. 
 “This move will have an extremely negative impact on power, steel and cement companies as an issue that is almost 21 years old is being addressed now and a lot of <keyword id="6362476" type="ORGANIZATION" weightage="80" keywordseo="investments">investments</keyword> have gone into these blocks, which will now get impacted. Most companies will have no option but to bid in the new round of auctions as one cannot only depend on imported coal,” said Issac George, Group Chief Financial Officer at GVK Power &amp; Infrastructure, which had been allotted two blocks. 
 
 
 
The power sector has already investedRs 2,86,677 crore toward exploration, mining and end-use projects, equivalent to almost 3% of the GDP. 
 
Coal-based projects represent about 59% of India’s total installed power generation capacity. Apart from the cancellation, operational mines will have to pay a penalty of Rs 295 for every tonne of coal extracted since they started. 
 
This will aggravate the finances of power companies, which are already grappling with stretched balance sheets. 
 
“The penalties imposed by the Supreme Court are very exacting and will take a big toll on the finances of some of these companies. How will the companies cough up this kind of cash without seriously compromising their cash flows or indebting themselves further?” George of GVK asked. 
 
According to Citigroup, the other grey area is how production and sale of coal will be affected when Coal India takes over these mines. “Will Coal India be able to produce in the same quantity, and how will sale of that coal happen? Will JSPL get the requisite coal even after Coal India starts operating its mines?” 
 In 2013-14, Coal India produced 462 million tonnes of coal, <keyword id="6357415" type="ENTERTAINMENT" weightage="60" keywordseo="missing">missing</keyword> the target of 482 million tonnes. The coal ministry anticipates that local supplies will fall as much as 185 million tonnes short of the country’s projected demand of 950 million tonnes in 2016-17. The gap could widen if the cancelled mines don’t produce the projected volumes of coal.

Coalgate Verdict: Worst Fears For Power Companies Come True

New Delhi, Jan 19 () Reliance Industries Ltd (RIL) has outpaced industry in clocking double digit sales growth in petrol and diesel from its nearly 1,400-odd petrol pumps in the third quarter ended December 31, 2019.
In an investor presentation post announcing earnings for October-December 2019, Reliance, operator of the world's largest oil refining complex, said it registered an 11 per cent growth in diesel sales and 15 per cent growth rate in petrol sales from its 1,394 fuel retail outlets.
This is compared to industry growth rate of 0.2 per cent for diesel and 7.1 per cent for petrol.
Its per outlet throughput at 342 kilolitres per month was also nearly double that of petrol pumps operated by public sector firms such as Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL).
"Superior product mix and high asset utilisation underpinned strong earnings," it said in the presentation adding India's oil demand grew 3.2 per cent in October-December with petrol demand rising 7.1 per cent and LPG surging by 15 per cent.
"Preference for petrol cars, improving road infrastructure and rural connectivity is driving petrol demand," it said. A pick up in tourist movement post festive season provided support to ATF demand.
Reliance said there was a strong traction in retail and bulk fuel sales through its network.
"Growth driven by focus on large fleet customers (25 per cent year-on-year growth), fleet aggregators (114 per cent)," it said.
Its ATF sales were driving up via new customer acquisition and higher share from existing customers. "Improved ATF network competitiveness through logistical and supply source optimization," the presentation said.
LPG sales was up 37 per cent with new customers and increasing penetration in new markets.
Reliance said its petro retail sales revenues were up 5 per cent at Rs 3,725 crore in the third quarter. As much as 538 million litres of fuel was sold in the three month period.
Of the 1,394 petrol pumps that Reliance operates, 518 are company owned and the remaining dealer operated.
In April last year, Reliance agreed to sell 49 per cent in its petro retail business to UK's BP plc for Rs 7,000 crore. Reliance-BP joint venture agreed to expand the network to 5,500 in the next five years.
The country currently has 66,817 petrol pumps, with public sector retailers owning 59,716. PSU retailers have plans to double this network and have already starting appointing dealers. 
Russia's Rosneft-backed Nayara Energy, formerly Essar Oil, has 5,525 petrol pumps and has plans to scale them up to more than 7,000 in two-three years. 
Royal Dutch Shell has 169 outlets and is slated to add 150-200 more petrol pumps. ANZ MKJ

Reliance outpaces industry in petrol, diesel sales from its outlets

Mumbai, Dec 17 () Noted banker Uday Kotak on Tuesday said the country's financial system is currently in a Darwinian mode as only the fittest lenders are able to survive.
 The Managing Director and Chief Executive Officer of Kotak Mahindra Bank also that historically, whenever there has been a problem with a private sector lender, it has been merged with a state-run bank.
"India is in massive Darwinian mode of what I call as the survival of the fittest. 
"Sector after sector has seen that it is going to be more consolidated than ever before. Consolidation in the Indian economy is happening more out of mortality and less out of combinations," Kotak said.
 He also noted that historically, whenever there has been a problem with a private sector lender, it has been merged with a state-run bank.
According to him, the government has to "rework" the Financial Resolution Deposit Insurance (FRDI) Bill since an exit route is essential for troubled lenders.
 FRDI Bill, which had raised concerns over protection for depositors, has lapsed and the government is yet to introduce a new bill.
 "As you are allowing entry in banking, we should be thinking more about exit policy. And one of the earlier bill that was planned earlier was the FRDI Bill. We need to rework on that," Kotak said, speaking at the Times Network organised India Economic Conclave here.
 The comments come at a time when multiple lenders, especially non-banks and also cooperatives like PMC Bank are sailing through choppy waters, which has highlighted the need for a legislation to take care of exits by financial sector participants.
 Kotak also welcomed rules introduced under the Insolvency and Bankruptcy Code (IBC) wherein troubled DHFL has been referred for resolution.
 Regarding infra-lender IL&amp;FS, whose over RS 94,600-crore debt resolution process he heads, Kotak reiterated the company is confident of recovering over 50 per cent of its dues.
 He said the biggest challenge in the IL&amp;FS resolution was the distribution mechanism, which has been overcome after the Supreme Court judgement in the Essar Steel case.
 Kotak said there has been a complex web of over 340 companies in the IL&amp;FS group created over two decades which resulted in a lot of time taken by its new board.
 He said the time has come to "dramatically increase" the flow of domestic savings going into risk averse assets like fixed deposits and gold, into risk capital which can help the economy better.
 Further, Kotak said the government should choose a set of six core state-run lenders, and mark out three others where its stake would go down below 50 per cent through sales in the market and have the remaining three run as "public private partnerships". AA RAM

Indian financial system in Darwinian mode, only fittest lenders survive: Uday Kotak

<keyword id="624" type="ORGANIZATION" weightage="100" keywordseo="Women">Women</keyword>’s Day is just a few hours away but do you have a strategy in place yet to inspire and usher in change? Inspiring the change is the theme of this year and it seems to gel well with the general scenario here in India. The upcoming <keyword id="6355187" type="ORGANIZATION" weightage="80" keywordseo="Lok-Sabha">Lok Sabha</keyword> polls are expected to bring in some radical changes while businesses are always ready to adopt forward-thinking vision and disrupting practices. If growth and change are very much there on your personal agenda, it may help to listen to those who have had first-hand experience of triumphs and struggles. So in the third part of our Power Women series, <keyword id="824043" type="COMPANY" weightage="100" keywordseo="Business-Insider">Business Insider</keyword> India chats with <keyword id="232724" type="PERSON" weightage="100" keywordseo="Ishita-Swarup">Ishita Swarup</keyword>, co-founder and CEO of <keyword id="645258" type="UNKNOWN" weightage="100" keywordseo="99labels-com">99labels.com</keyword>. She also runs a separate <keyword id="2109310" type="UNKNOWN" weightage="100" keywordseo="Catalogue-site">catalogue site</keyword> called <keyword id="2109308" type="UNKNOWN" weightage="100" keywordseo="9rasa-com">9rasa.com</keyword>, which focuses on <keyword id="63778" type="UNKNOWN" weightage="100" keywordseo="ethnic-wear">ethnic wear</keyword>. 
 But before we go ahead, here’s a quick look-back. 99labels was launched in 2009 as a members-only, <keyword id="2109315" type="UNKNOWN" weightage="100" keywordseo="Flash-sales-site">flash sales site</keyword>, offering <keyword id="6574071" type="UNKNOWN" weightage="100" keywordseo="Luxury-brands">luxury brands</keyword> in <keyword id="1861782" type="UNKNOWN" weightage="100" keywordseo="fashion-apparel">fashion apparel</keyword>, <keyword id="23964" type="UNKNOWN" weightage="100" keywordseo="accessories">accessories</keyword> and a wide range of <keyword id="1031145" type="UNKNOWN" weightage="100" keywordseo="lifestyle-products">lifestyle products</keyword>. Although the concept was both novel and popular at that time, an <keyword id="2109319" type="UNKNOWN" weightage="100" keywordseo="Overcrowded-e-commerce-space">overcrowded e-commerce space</keyword> meant tough competition for the <keyword id="2109321" type="UNKNOWN" weightage="100" keywordseo="Digital-venture">digital venture</keyword>. In another setback last year, institutional investor <keyword id="80004" type="COMPANY" weightage="100" keywordseo="Info-Edge">Info Edge</keyword> decided to write off its entire investment in 99labels – a sum of around Rs 29.3 crore. Info Edge said the move was made due to <keyword id="2109342" type="UNKNOWN" weightage="100" keywordseo="Asset-impairment">asset impairment</keyword>. 
 Although media speculations were rife that 99labels could go out of business soon, Ishita and her team have been coping with the turmoil for a year now – re-inventing the business (the flash sales model is gone) and trying to raise <keyword id="2109329" type="UNKNOWN" weightage="100" keywordseo="External-capital">external capital</keyword> to ensure growth. And it surely proves that Ishita not only loves challenges but she would go all out to tackle tough times. 
 An Economics major from <keyword id="6360099" type="ORGANIZATION" weightage="60" keywordseo="Delhi-University">Delhi University</keyword> and an MBA from IMT Ghaziabad, she started her career with Cadburys and later launched <keyword id="2109331" type="COMPANY" weightage="100" keywordseo="Orion-Dialog">Orion Dialog</keyword>, a pioneer in the ITeS sector in India. Ishita exited by selling the company to <keyword id="98385" type="COMPANY" weightage="80" keywordseo="Aegis">Aegis</keyword> BPO, part of the <keyword id="6425677" type="CITY" weightage="80" keywordseo="Essar-Group">Essar Group</keyword>, and then helped set up a social venture called <keyword id="2109332" type="ORGANIZATION" weightage="100" keywordseo="Sakha-Consulting-Wings">Sakha Consulting Wings</keyword>, launched to provide <keyword id="2109335" type="UNKNOWN" weightage="100" keywordseo="Safe-transport-solutions">safe transport solutions</keyword> for women, by women, in urban India. Next came 99labels and the saga continues in spite of ups and downs. What’s Ishita’s view on <keyword id="107737" type="ORGANIZATION" weightage="100" keywordseo="Entrepreneurship">entrepreneurship</keyword> and its hurdles? Find out here. 
 
I always wanted to run my own business As far as I remember, it was always there at the back of my mind. I always wanted to do something of my own. I had quite a few <keyword id="435643" type="UNKNOWN" weightage="100" keywordseo="Business-ideas">business ideas</keyword> that I believed would work if they were implemented. And finally, I have always had complete belief that I can make things happen. 
 
Learn to live with ups and downs It is a given that as an <keyword id="6359301" type="POSITION" weightage="100" keywordseo="Entrepreneur">entrepreneur</keyword>, you will face highs and lows, positives and negatives. On the positive side, I would say, I have experienced success. However small, it makes me happy because I treat it as my personal success. Then, I had the opportunity to do so many varied things and learn from each. I have been extremely fortunate to be able to turn many of my ideas into reality and some into successes. 
 And the negatives are there, too. As an entrepreneur, there can be excessive <keyword id="23666" type="UNKNOWN" weightage="80" keywordseo="stress">stress</keyword>, especially when things go wrong. There are also times when one feels lonely and isolated and without support. The other thing I miss is the chance to learn from my peer group and/or seniors. But the biggest challenge has been the <keyword id="6367339" type="UNKNOWN" weightage="100" keywordseo="Lack-of-funds">lack of funds</keyword>, especially when I am trying to scale the business. Still, one has to cope with these things and get ahead. 
 
<keyword id="6387628" type="UNKNOWN" weightage="100" keywordseo="Inspiration">Inspiration</keyword> matters 
Because it gives you a different perspective all the time, cheers you up and makes you strong. My inspiration in life comes from the people I meet along the way and from those who are in my life. I find inspiration from my young daughter who looks at mundane things in unique ways and doesn’t take ‘no’ for an answer. My grandmother also inspires me – she was a path-breaker in many ways. My husband leads a disciplined life and I have learnt a lot from him. Then there’s a close friend whose positive spirit is extremely infectious. 
 
Want to start up? Just do it 
My only advice for anyone who wants to be an entrepreneur is that if you believe in yourself and your idea, don’t hesitate to take the plunge. Just do it. When you are running your own business, you have a lot of freedom to do it the way you want to. Don’t let go of that opportunity. 
 
Watch this space tomorrow – Power Women will be back with its last but no less intriguing success story.

Power Women:
‘Just Do It’ Is The New-age Entrepreneurship Mantra

<keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> Ltd (RIL), India's largest company, on Thursday said its board has approved hiving off its USD 75 billion worth oil-to-chemicals business into a separate division to enable the sale of 20 per cent stake in the unit to Saudi national oil company Aramco. The hiving off will be subject to the approval of the National Company Law Tribunal. After the approval, the oil-to-chemical (O2C) business will become a separate vertical with independent balance sheet just like the conglomerate's digital arm, Jio Platforms. RIL had organised all its digital businesses including Reliance Jio that has 388 million telecom subscribers, into Jio Platforms. It last week agreed to sell a 9.99 per cent stake in Jio Platforms to <keyword id="319320" type="COMPANY" weightage="20" keywordseo="Facebook-Inc">Facebook Inc</keyword> for USD 5.7 billion. RIL Board "approved a Scheme of Arrangement for transfer of O2C Undertaking of the company to <keyword id="9147221" type="COMPANY" weightage="20" keywordseo="reliance-o2c-ltd">Reliance O2C Ltd</keyword> as a going concern on slump sale basis for a lump sum consideration equal to the income tax net worth of the O2C Undertaking as on the appointed date of the Scheme," it said in its fourth-quarter earnings statement. O2C undertaking of the company comprises entire oil-to-chemicals business of the company consisting of refining, petrochemicals, fuel retail and aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities. "The scheme is subject to necessary statutory/regulatory approvals under applicable laws including approval of National Company Law Tribunal," it added. In August last year, RIL head <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> had announced initial agreements to sell a 20 per cent stake in the oil-to-chemical business to <keyword id="152170" type="COMPANY" weightage="20" keywordseo="Saudi-Aramco">Saudi Aramco</keyword> for an asking of USD 15 billion. The deal covers all of Reliance's refining and petrochemicals assets as well as the remainder of stake the firm has in fuel retailing business after selling 49 per cent to BP Plc of UK for Rs 7,000 crore. The deal, which valued the oil-to-chemical business at USD 75 billion, was to close by March 2020 but it is now expected to close within the current calendar year. Reliance has pivoted away from energy to the new economy. But refining and petrochemicals are cash cows for Reliance and still account for the bulk of its EBITDA. As part of the August deal, Saudi Aramco will supply 500,000 barrels per day (25 million tonnes a year) of crude on a long-term basis to RIL's Jamnagar refinery complex (more than a third of the 1.36 million bpd refining capacity). The deals give Aramco and BP access to the fastest-growing refined fuels market in the world. Market analyst firm Bernstein in a recent report had stated that it expects RIL to grow their petrochemical and refining business given the secular growth opportunities. "While bears will argue that Reliance is stepping away from energy to digital, we see this deal as an opportunity to expand the downstream business in India with a solid partnership. For Aramco, the deal provides direct access to what is widely expected to be the fastest-growing refined oil product market over the next 20 years," it said. "For Reliance, it provides cash to fund the expansion of their digital business and further expansion of downstream capacity with an experienced partner." While talks with Aramco continue, the BP deal has been finalised. Reliance's existing 1,400-odd petrol pumps, as well as 31 aviation fuel stations, will be transferred to the new joint venture where BP will hold 49 per cent equity stake. Reliance will hold the balance 51 per cent in the entity, which aims to expand the retail network to 5,500 petrol pumps in the next five years. This is the third joint venture between Reliance and BP since 2011. BP had in 2011 bought 30 per cent stake in 21 oil and gas exploration and production blocks of Reliance for USD 7.2 billion. At that time, another 50:50 joint venture, <keyword id="838593" type="COMPANY" weightage="20" keywordseo="India-Gas-Solutions">India Gas Solutions</keyword>, was set up for sourcing and marketing gas in India. The country currently has 69,109 petrol pumps, with public sector retailers owning 61,811. PSU retailers have plans to double this network and have already started appointing dealers. Russia's Rosneft-backed Nayara Energy, formerly Essar Oil, has 5,702 petrol pumps and has plans to scale them up to more than 7,000 in two-three years. Royal Dutch Shell has 189 outlets and is slated to add 150-200 more petrol pumps. BP had in 2016 received a licence from the government to set up 3,500 petrol pumps in India. French energy giant Total SA too is keen on entering the Indian retail market and has tied up with Adani Group for the same. The Saudi national oil company, along with its partner UAE's Abu Dabhi National Oil Co (ADNOC) has taken a 50 per cent stake in a planned USD 60-billion mega refinery-cum-petrochemical complex in Maharashtra by state-owned oil companies, and has a bullish outlook on India's energy demand and is keen on investing here. Reliance operates two refineries in Jamnagar, Gujarat, with a total capacity of 68.2 million tonnes per annum. It plans to expand its only-for-exports special economic zone (SEZ) refining capacity to just over 41 million tonnes from the current 35.2 million tonnes. Saudi Arabia, on the other hand, is keen to get a foothold in the world's fastest-growing fuel market to get a captive customer for the crude oil it produces. Crude oil is the basic raw material for the manufacturing of petrochemicals. Saudi Aramco is also keen on retailing fuel in India. A refinery in India can also be a base for it to export fuel to deficit countries in Europe and the Americas. India has a refining capacity of 249.9 million tonnes, which exceeded the demand of 213.7 million tonnes. See also: <a href="https://www.businessinsider.in/business/corporates/news/ril-rights-issue-ratio-pricing-and-value/articleshow/75474592.cms">Mukesh Ambani offers Reliance Industries shareholders 1 new share for every 15 held⁠— at a price 14% below market value</a> <a href="https://www.businessinsider.in/business/news/reliance-retails-operating-profit-grows-nearly-20-in-the-latest-fourth-quarter/articleshow/75474722.cms">Reliance Retail’s operating profit grows nearly 20% in the latest fourth quarter⁠⁠</a> <a href="https://www.businessinsider.in/business/news/tech-mahindras-net-profits-see-a-massive-32-drop-even-as-its-digital-business-is-treading-water-amidst-the-covid-19-crisis/articleshow/75472198.cms">Tech Mahindra’s net profits see a massive 32% drop even as its digital business is treading water amidst the COVID-19 crisis</a>

Reliance to hive off $75 billion oil-to-chemicals business into separate unit for sale to Aramco

If you think <keyword id="10387" type="CITY" weightage="60" keywordseo="Microsoft">Microsoft</keyword>’s prolonged search for the next <keyword id="5645" type="POSITION" weightage="100" keywordseo="CEO">CEO</keyword> is getting a bit nutty, especially with a disgruntled <keyword id="62333" type="PERSON" weightage="60" keywordseo="Steve-Ballmer">Steve Ballmer</keyword> waiting on the sidelines to hand over the mantle, you are not far from the truth. But then, that is the actual state of the coveted C-Suite nowadays – volatile is the right word if you want to sum it up. There is no job security at the top and even the best performer for years can get redundant within the span of a few weeks. The issues could be many – right from <keyword id="646347" type="UNKNOWN" weightage="100" keywordseo="poor-performance">poor performance</keyword> to <keyword id="610960" type="UNKNOWN" weightage="100" keywordseo="business-restructuring">business restructuring</keyword> to alleged <keyword id="6375736" type="UNKNOWN" weightage="100" keywordseo="corruption-charges">corruption charges</keyword>. But the biggest factor is relevance, a perfect future-fit that can take companies ahead, according to <keyword id="67736" type="UNKNOWN" weightage="100" keywordseo="Industry-experts">industry experts</keyword>. In a difficult <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword>, companies are compelled to twist and turn to keep track of profitability and their requirements change accordingly. Hence, their leaders have to adapt, shape up or ship out, as the case might be. 
 India is no exception and business leaders across the country have been frequently ‘released’ by industry giants. Many of them leave with ‘immediate effect’ while others are on garden leave or worse still, waiting for their predecessors to turn up (just like Ballmer). Yet, most of the C-Suite executives are tight-lipped about their departures, at least here in India. We are yet to come across an announcement like the one made by <keyword id="384914" type="PERSON" weightage="60" keywordseo="Groupon">Groupon</keyword>’s founder and former CEO <keyword id="488139" type="PERSON" weightage="60" keywordseo="Andrew-Mason">Andrew Mason</keyword>. But exit happens all the same – be it discreet or blatant. Here’s a quick look at some of the top-notch C-Suite executives from India who parted ways with their respective companies in 2013, their official exit lines and what happened behind the scene.

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EXCLUSIVE: New amendment to bankruptcy law has Prashant Ruia’s personal guarantee on its radar

Sriram Iyer

Offering loans to clean up bad loans! State-run banks to issue loans worth Rs 30,000 crore to ARCs

BI India Bureau

RCom CoC to vote on Rs 23,000 cr resolution plans on Feb 24

PTI

Coalgate Verdict: Worst Fears For Power Companies Come True

ET

Reliance outpaces industry in petrol, diesel sales from its outlets

PTI

Indian financial system in Darwinian mode, only fittest lenders survive: Uday Kotak

PTI

Power Women: ‘Just Do It’ Is The New-age Entrepreneurship Mantra

Sanghamitra Mandal

Reliance to hive off $75 billion oil-to-chemicals business into separate unit for sale to Aramco

PTI

Strife At The Top: These 11 C-Suite Execs From India Were ‘Let Go’ In 2013

Sanghamitra Mandal

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