Jet Airways plans for foreign loans rejected
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Jet Airways plans for foreign loans rejected
New Delhi: The Centre has rejected a proposal by Naresh Goyal-led Jet Airways to borrow almost $700 million from the Bank of Oman for “general corporate purposes”. It has also turned down the airline’s plan to borrow from an associate or overseas subsidiary, a top finance ministry official confirmed to Financial Chronicle.
Goyal had also pleaded for relaxing end-use norms of foreign debt funds accessed for working capital purposes. This too has been rejected. Jet proposed to use funds raised through external commercial borrowings (ECB) to meet fuel expenses, catering and airport charges categorising them as general corporate purposes.
Jet had sought eligibility to borrow funds from overseas subsidi*aries (read holding company and its associates), but there were no takers in the government for such a proposal, as this would involve “round-tripping issues”. Jet Airways does not have an overseas subsidiary, but operates a holding company Tail Winds owned by founder-promoter Goyal, which is registered in the tax haven of Isle of Man.
22/04/12 KA Badarinath/Saahil Anant/mydigitalfc.com
LOL! Mr Goyal got links when it comes to money?!
Goyal had also pleaded for relaxing end-use norms of foreign debt funds accessed for working capital purposes. This too has been rejected. Jet proposed to use funds raised through external commercial borrowings (ECB) to meet fuel expenses, catering and airport charges categorising them as general corporate purposes.
Jet had sought eligibility to borrow funds from overseas subsidi*aries (read holding company and its associates), but there were no takers in the government for such a proposal, as this would involve “round-tripping issues”. Jet Airways does not have an overseas subsidiary, but operates a holding company Tail Winds owned by founder-promoter Goyal, which is registered in the tax haven of Isle of Man.
22/04/12 KA Badarinath/Saahil Anant/mydigitalfc.com
LOL! Mr Goyal got links when it comes to money?!
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I am at pains to understand GOI's rigid stance on a private business trying to borrow money from an overseas bank.
...and on the other hand GOI has managed to approve Rs 30,000 crores out of taxpayers money to the biggest mismanaged airline in the country. (OK ...KF can also be in contention for that title) Boy am i so glad that i no longer pay taxes to the Indian govt! Its not like 9W was knocking on the doors of the govt for a bail out freebies. I can barely understand the FDI limits but can never accept that the fact that private carriers in India are not even allowed to get loans from overseas!
...and on the other hand GOI has managed to approve Rs 30,000 crores out of taxpayers money to the biggest mismanaged airline in the country. (OK ...KF can also be in contention for that title) Boy am i so glad that i no longer pay taxes to the Indian govt! Its not like 9W was knocking on the doors of the govt for a bail out freebies. I can barely understand the FDI limits but can never accept that the fact that private carriers in India are not even allowed to get loans from overseas!
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...and on the other hand GOI has managed to approve Rs 30,000 crores out of taxpayers money to the biggest mismanaged airline in the country. (OK ...KF can also be in contention for that title) Boy am i so glad that i no longer pay taxes to the Indian govt! Its not like 9W was knocking on the doors of the govt for a bail out freebies. I can barely understand the FDI limits but can never accept that the fact that private carriers in India are not even allowed to get loans from overseas!
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No problem!
Just re-submit the proposal tomorrow with a small amendment citing the agreement to send a sizeable kickback to the Government official responsible and hey presto!
Indeed, Incredible India.
Just re-submit the proposal tomorrow with a small amendment citing the agreement to send a sizeable kickback to the Government official responsible and hey presto!
Indeed, Incredible India.
