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Thu, Oct

IL&FS faces more embarrassments: India Ratings downgrades mutual fund schemes

Crippled IL&FS group faced Tuesday more embarrassments after India Ratings downgraded its various mutual fund schemes and placed them on a rating watch negative (RWN).

The agency downgraded three series-1, three series- 2 and two series -3 mutual fund schemes of the group, “due to the deterioration in the underlying portfolio quality of the schemes due to its exposure to IL&FS group entities. The RWN reflects absence of clarity on the resolution of the above referred assets in the portfolio due to the poor financial profile of the sponsor group, which IL&FS, it said. All IL&FS IDF schemes generally have an exposure of around 23.55 per cent in group companies –IL&FS Solar Power and IL&FS Wind Energy, whose credit profile has weakened.

IL&FS and its group companies are facing liquidity crisis and had defaulted on debt repayments. The rating agency said the ratings do not factor in the expectation of the default risk for the scheme itself, as a fund/scheme generally cannot default.

“The ratings should be interpreted as an opinion about the strength of the fund’s investment policies, the expertise and experience of the sponsors and investment managers, and the scheme’s vulnerability to severe losses,” it said. The ratings also do not address the risk of a loss due to changes in the prevailing interest rates, credit spreads and other market conditions, the agency said, adding the comments on the adequacy of market value to address the extent to which fund expenses and costs may reduce distributions to unit holders.

Read more: IL&FS faces more embarrassments: India Ratings...

Saubhagaya scheme, Power Ministry, Narendra Modi, SECI, R K Singh,  Solar Energy tender The minister informed that there are three categories of states to compete under the scheme which include special category states (northeast and other hilly states). (Reuters)

The Power Ministry Monday announced Rs 100 crore award for states that would complete the household electrification early under the Saubhagaya scheme. Apart from discoms, the employees would also collectively get Rs 50 lakh award for completing the task of electrifying household under the Rs 16,320 crore Saubhagaya scheme launched by Prime Minister Narendra Modi last year in September.

“We have decided to award states for early completion of household electrification work under Saubhagaya scheme,” Power Minister R K Singh said after a review meeting of the scheme with state representatives here. The minister informed that there are three categories of states to compete under the scheme which include special category states (northeast and other hilly states).

Besides, the states would be categorised in two other broad categories – one pool of states would have those where number of households to be electrified are less than 5 lakh. Another pool of states would cover states that have more than 5 lakh households to be electrified. Singh said that out of the Rs 50 lakh award for employees of a discom, Rs 20 lakh can be distributed among employees of its division for commendable work.

He also told that some of the states have already achieved almost 99 per cent of household electrification work and those eight states would be kept out of this Award scheme. These states are Gujarat, Punjab, Goa, Andhra Pradesh, Haryana, Kerala, Tamil Nadu and Himachal Pradesh. Singh who is also New & Renewable Energy Minister said that government is looking into the issue of allowing more time for implementing solar energy projects linked with manufacturing component.

Recently Solar Energy Corporation of India (SECI) postponed the 10 GW Solar Energy tender till November 12 for the third time. The last date for submission of bid was October 12. The minister explained that bidders are of the view that the existing timeline to implement solar capacities would force them to import equipment whereas the tender aimed to promote make in India.

Read more: States to get Rs 100 Cr award for being...

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