News digest: PCA framework, Essar Steel sale, Highway rankings, and more

From RBI's PCA framework to NHAI's highway rankings, BS brings you top stories to keep up with the latest news

Centre may ask RBI to ease prompt corrective action framework

The Centre may ask the Reserve Bank of India (RBI) to consider revising the prompt corrective action (PCA) framework so that a complete restriction on fresh lending does not affect credit flow to business, particularly small and medium enterprises.

Piyush Goyal, who recently assumed charge as finance minister till Arun Jaitley recovers from an operation, held a review meeting with the top management of 11 public sector banks under the PCA framework on Thursday. Read more here

BJP begins stint with loan waiver, gets busy wooing MLAs for floor test

Alert to the possibility that the Supreme Court could ask it to prove its majority on the floor of the Karnataka Assembly before schedule, the Bharatiya Janata Party (BJP) on Thursday made efforts to woo Congress and Janata Dal (Secular) MLAs.

It also prepared for the eventuality of losing the floor test. With an eye on the 2019 Lok Sabha polls, the first decision of the new Chief Minister B S Yeddyurappa was to reach out to farmers of Karnataka. All farm loans of up to Rs 100,000 would be written off, he announced. Read more here

Bidding wars: Numetal reveals Rs 370 billion new offer for Essar Steel

VTB-backed Numetal on Thursday disclosed in the National Company Law Appellate Tribunal (NCLAT) that its bid value in the second round of bidding for Essar Steel is Rs 370 billion, short of double its first offer of Rs 190 billion, and about Rs 65 billion higher than ArcelorMittal’s bid in the first round.

If the bid values of the two companies are compared, Numetal’s bid value in the second round at Rs 430 billion (including capital infusion) is higher than ArcelorMittal’s first offer by Rs 45 billion. ArcelorMittal’s bid in the second round, however, is not known. Read more here

NHAI soon to rank roads, economic corridors for safety, better mobility

With the aim of providing safe and better mobility to commuters, the National Highways Authority of India (NHAI) will soon start ranking roads periodically on various parameters, including safety management. 

Projects on marquee economic corridors of Delhi-Vadodara, Agra-Mumbai and Mumbai-Kolkata will be audited first and once the success rate of the gradation exercise is established, it will be extended to other highway contracts. Read more here

Insolvency: RCom, Ericsson India likely to settle dispute outside NCLT

Even as the National Company Law Tribunal (NCLT) has admitted the petition for insolvency, Reliance Communications (RCom) is in talks with Ericsson India for a settlement of the dispute to pay Rs 11.5 billion to the latter, said sources.

RCom in its reply to queries from the stock exchanges on the possible settlement with Ericsson said, “Appropriate disclosures will be made in accordance with applicable regulations, as and when any disclosable event occurs.” Read more here