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Two new books by Urjit Patel and Viral Acharya have revived a discussion on the Insolvency and Bankruptcy Code introduced by the Modi government. Did the process favour some companies? (1/n)
Two new books by Urjit Patel and Viral Acharya have revived a discussion on the Insolvency and Bankruptcy Code introduced by the Modi government. Did the process favour some companies? (1/n)
The UPA government was rocked by allegations of crony capitalism during the Commonwealth Games, the telecom and coal scams. Crony capitalism has changed shape since then. (2/n)
The Modi government extricated chosen firms from the insolvency and bankruptcy process, as @mrajshekhar reported in a series for @scroll_in (3/n)
Many thermal power projects slipped into bankruptcy but Adani, Essar and Tata projects escaped. Here is how the government helped them: https://scroll.in/article/915109/adani-power-project-was-on-the-brink-of-bankruptcy-but-the-bjp-government-in-gujarat-saved-it (4/n)
Here is a second instance where a government deal bailed out Essar at the cost of Indian Oil PSUs. https://scroll.in/article/910862/the-modi-putin-effect-russian-oil-deals-benefited-essar-hurt-ongc-say-experts (5/n)
What has compounded matters further is highly uneven access to capital amongst Indian firms. Look at the Adani Group's expansion https://scroll.in/article/923095/from-2014-to-2019-how-the-adani-groups-footprint-expanded-across-india (6/n)
How is the Adani Group able to keep raising money despite such internal money circulation. @mrajshekhar took a closer look https://scroll.in/article/923201/from-2014-to-2019-how-the-adani-group-funded-its-expansion (7/n)
The costs of such bailouts run deep. As stringent norms push masses of companies into bankruptcy and the government bails out only a handful of firms, India is seeing a few firms amass scale at firesale rates. https://scroll.in/article/898058/indias-bid-to-fix-bad-loan-crisis-is-reshaping-its-corporate-sector-and-creating-new-challenges (8/n)
This is nothing less than the single-biggest change in ownership India Inc has ever seen. A closer look at the handful of buyers. https://scroll.in/article/898060/as-india-tackles-its-bad-loans-problem-large-local-groups-and-global-funds-are-gaining-advantage (9/n)
What do selective bailouts mean for other businessmen? Consider Chhattisgarh's steel and power industries. https://scroll.in/article/898064/indias-proceedings-to-recover-bad-debt-are-reshaping-chhattisgarhs-economy-and-politics-too (10/n)
If demonetisation wrecked the informal economy and GST hammered small and medium enterprises, the insolvency process is hammering larger companies. (11/n)
One reason for the inflexibility in the insolvency proceedings, said a former Union finance secretary who did not want to be identified, is the government’s fear that it would be seen as being soft on corruption. “It sees even bad loans as fraud.” https://scroll.in/article/898979/the-inflexibility-marking-indias-bankruptcy-proceedings-is-causing-problems-no-one-had-foreseen (n/n)
