The Government has rejected a demand put forward by banks to grant them powers of possession and sale of assets of defaulting companies. Officials of the Banking Division of the Ministry of Finance have veered around the view that granting of such powers to the lenders will eliminate the possibility of independent and fair assessment of cases of default. Burdened with huge non-performing assets of about Rs. 40,000 crores and delays in settlement of cases through the Debt Recovery Tribunals, several nationalised banks, led by SBI, had been pressing the Government for powers of to take possession of assets, as available to the State financial corporations under Section 29 of the SFC Act.

Hurdle before MSEB in picking Dabhol stake

The Maharashtra State Electricity Board may be unable to pick up an equity stake in Dabhol Power Company, as planned, since it could violate provisions of the Electricity (Supply) Act, 1948, going by the legal opinion received by the State Government. MSEB has received legal advice on this matter and the board is now examining the issue. The Act stipulates that State electricity boards can only take part in generation, distribution and transmission of electricity.

Air-India may dump unviable sectors

In an unprecedented move, Air-India is examining the option of slashing its operations to Europe, Canada and South Africa to cut cash losses and, in the worst scenario, pull out of a few sectors during lean seasons. Sources said the national carrier plans to make a presentation to the Civil Aviation Minister, Mr. C. M. Ibrahim, about the status and the need for pruning flights on loss-making sectors.

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