News digest: ArcelorMittal bid, PFC loans, diamond industry, and more

Ministerial committee may pave way for ArcelorMittal's Essar Steel bid The insolvency law committee is meeting on Monday to finalise the recommendations to amend Section29A. The section has a provision that bars those related to debtor companies having toxic assets that are classified as non-performing for a year or more from taking part in the bidding process under the Insolvency and Bankruptcy Code (IBC). The amendments are expected to change the definition of ‘connected-party’, thereby, allowing bids from companies such as ArcelorMittal. The world’s largest steelmaker is facing an eligibility test on the ground that the company and its promoter, L N Mittal, had investments in non-performing Uttam Galva Steels and KSS Petron, respectively. Read more here... PFC's power projects with 14,000 Mw capacity to go down insolvency alley State-owned Power Finance Corporation (PFC) could see around 11.4 per cent of its loan book getting into the insolvency route. This includes debt-laden thermal power projects, stranded gas and hydro power units. Officials said 14,115 Mw of capacity, at an estimated Rs 300 billion exposure to PFC, will go under insolvency proceedings. Read more here... Ola's chess match with both rivals and investors; seeks $1 bn funding Cab service company Ola is looking at raising a new round of funding, of at least $1 billion (Rs 64 billion), from Singapore-based Temasek Holdings to diversify its investor base. And, its US-based rival, Uber Technologies, is deciding to sell its business in Southeast Asia to local rival Grab Inc.

With these, the focus has again shifted to the outlook for the ride hailing business in this country, in case the US-based company also sells the business and merges it with Ola, in exchange for equity. Read more here... Quick savings recovery after demonetisation jolt: Reserve Bank of India The Reserve Bank of India’s (RBI’s) first quarterly publication on households’ financial assets pattern shows that Indian households quickly overcame the jitters from demonetisation. So far the study was published annually, but will now be available every quarter. The reason being an annual study often fails to capture the sharp volatility witnessed in investments and savings pattern every quarter. Read more here... Can 'one village one family' model of Indian diamond industry survive? What differentiates the diamond industry from rest of the businesses in India? Long described as a closed circle of a few heavy hitters across one or two ethnic groups controlling the business for generations, the deep-rooted interconnections, mostly through marital alliances, has helped maintain the opacity of the sector when compared to other trades like textiles or gold. But that is changing. Read more here...