With over Rs 9,000 crore debt, Anil Ambani's Reliance Naval now stares at bankruptcy
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With over Rs 9,000 crore debt, Anil Ambani’s Reliance Naval now stares at bankruptcy
The Anil Ambani company has not been servicing its Rs 9,000 cr of debt for several months now.
https://economictimes.indiatimes.com/news/defen...
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Search for L&T and how Govt made Shipping the most vulnerable venture for Corporate because of Govt preference of PSUs. So private firms in hope of building capacity took loans because of the shift of the Government as PSUs had huge numbers of orders and delivery of the product ran in late by years. So they invested the money but then NDA came in power. They implemented OROP which practically dried Capex of Forces. So Projects dried up and the losses & investment these companies had made came to bite them. L&T was wise that they tried to keep the cost minimal, even then they are very much under pressure because of Tenders(least price), PSUs will be funded by Govt thus they don’t need to think about losses.
Not denying what you’re saying wrt Defence, Reliance & institutionalised Corruption that happened in UPA terms.
Mota bhai, Chhota bhai ko bachaao…. 
if it helps get him strategic or moral win and more benefits later, then he will. 
Our govt will come up with a mega naval deal soon which will be serviced by Reliance Naval 
i think it’s long in process, as per comment above
mine says arrived at destination hub
…and this guy is choosen by modi to build rafael…
He’ the chosen one!
look up “Project 75i” for the background of why Rel Infra was in such a hurry to get management control in and pay 10% more than other suitors, for Pipavav Defence & Offshore Engineering.
Pipavav defence was a poorly run company for a large part. even Bhavesh and Nikhil Gandhi (the promoters) did not really deny that.
even before finally selling their stake yo Reliance Infra subsidiary, the Gandhi’s had approached L&T in 2008-09 and were ready to sell it at less than half the price that Reliance later paid.
Reliance came almost out of nowhere (could be political influence too), because Gandhi’s had seriously again approached L&T to buy them out.
L&T wouldn’t have any of that debt ridden company, as even back in 2009-10 their greenfield project to make naval defence equipment was well on track.
apart from Reliance, others like DCNS SA the French defence equipment co., Munjals (of Hero group), Mahindras and even IDBI itself were approached.
Anil and most Indian businesses were aware that the (dalaal/pimp) powers that be, will use the ‘strategic partnership’ route to disenfranchise PSUs from the race to build the submarines or the stealth warships and the spoils of over 500Bn INR will be up for grabs.
the same powers anyway let 49% (overall cap) FDI in defence, thus it was and still is VERY lucrative to get into defence ship building.
─═─═─═─═─═─ship building is far more easier than planes, indigenisation is easy with minimal tech transfer requirement and India suddenly oversold the buy and make from India story─═─═─═─═─═─
trying to be overzealous and slay the golden egg laying hen, is what did Anil IN.
too many simultaneous loot ventures were started by Reliance Infrastructure via multiple subsidiaries and most of them are dragging their feet or busted (telecom, power, air defence equipment, this naval one and others).
but Project 75i is very much ON and still PSUs will be kept out of both: the six normal submarine delivery contracts and later (if at all) the nuclear powered submarines and hopefully the stealth warships.
Anil didn’t take on a healthy company to begin with, took all the debt, spent cash for the Gandhi’s equity buyout and then landed in the fighter planes controversy.
presently ADAG is mainly minting (vulgar amounts of) money by selling Crop Insurance and Farmer, Rural Insurance under PMFBY, PMSBY et al.
still, if Anil is too perturbed with this white elephant, could ask the consortium to convert loans into equity or restructure.. or as always Neeta, Mukesh, Narendra will find a salvage plan! [the naval contracts (loot) has to go to L&T and mota bhai/chota bhai].