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BPCL’s expansion of Bina Refinery
BPCL’s expansion of Bina Refinery
The minimum loan from individual banks is set at Rs 1,600 crore, and the loan will be benchmarked to SBI’s three-month marginal cost of fund-based lending rate (MCLR), currently at 8.3 per cent.
The company announced plans in May 2023 to invest Rs 49,000 crore in expanding its presence in petrochemicals and renewable energy. This expansion includes an ethylene cracker project and increasing the Bina Refinery’s capacity from 7.8 million metric tonnes per annum (MMTPA) to 11 MMTPA.
Vodafone Idea plans to upgrade 4G, launch 5G networks
Vodafone Idea plans to upgrade 4G, launch 5G networks
In contrast, bankers are wary of Vodafone Idea’s loan request due to its focus on upgrading its 4G network while competitors advance to 5G. The telecom company aims to raise Rs 23,000 crore through loans and an additional Rs 10,000 crore through non-fund-based guarantees. Despite a recent presentation by Vodafone Idea’s executives outlining their capex plans, bankers remain unconvinced, pending a techno-economic viability (TEV) study by SBI.
Vodafone Idea’s recent equity raise of about Rs 21,500 crore is part of a broader plan to spend Rs 50,000-55,000 crore over three years on expanding 4G coverage and rolling out 5G. However, past skepticism from banks, coupled with concerns over the telco’s financial stability, have led to a cautious approach.
Indian corporate credit landscape
Indian corporate credit landscape
Banks have been eager to boost corporate credit, which has lagged behind other loan types. The Reserve Bank of India (RBI) has urged companies to increase capital expenditure, supporting corporate credit growth in FY25. Crisil Ratings’ senior director Ajit Velonie noted that sectors like steel, cement, and pharmaceuticals are expected to lead the capex recovery, with emerging industries such as electronics, semiconductors, electric vehicles (EVs), and solar modules also contributing over the medium term.
First Published: Jun 21 2024 | 12:58 PM IST
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