Only Rs 1.7 lakh cr likely from bankruptcy proceedings: Chidambaram
New Delhi, June 6: With Union Minister Arun Jaitley declaring all those who owed money to the banks have been declared insolvent and removed from their companies under the Insolvency and Bankruptcy Code, Congress leader P. Chidamabaram said on Wednesday that only Rs 1.7 lakh crore is expected to be recovered out of Rs 4 lakh crore loans involved in the proceedings.
"Out of Rs 4 lakh crore loans involved in Insolvency & Bankruptcy proceedings, only Rs 1.7 lakh crore is expected to be recovered," Chidambaram said in a tweet.
Congress President Rahul Gandhi had alleged earlier in the day that the Modi government had written off loans worth Rs 2.50 lakh crore of some top industrialists.
Jaitley had responded to Gandhi by stating in an article that the government has not waived of a single rupee due from any industrialist. "Those who owed money to the banks and other creditors have been declared insolvent and removed from their companies by IBC (Insolvency and Bankruptcy Code) enacted by Prime Minister Modi's government. These loans were given largely during the UPA government," he said.
Chidambaram, who made a series of tweets, also took a dig at government over the low growth rate of credit to industry.
"Credit to industry in 2018 grew at a grand rate of 1 per cent ! Yes, 1 per cent!...Banks will need a further Rs 60,000 crore towards recapitalisation," he said.
The former Finance Minister also said that the government's Make in India programme had failed to deliver results in defence production.
"Make in India scheme in defence production has been officially abandoned," he added.
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Power tariffs under BESCOM to rise from May 1
Bengaluru (PTI): Power bills for consumers under the Bangalore Electricity Supply Company Limited (BESCOM) will go up from May 1, following an order issued by the Karnataka Electricity Regulatory Commission (KERC) on Friday.
The hike comes after KERC allowed the BESCOM to recover a revenue deficit of Rs 2,068 crore incurred in 2024-25, from the consumers.
As a result, for every unit of electricity consumed in 2024-25, the customers will be charged an additional 56 paise, it said.
"BESCOM shall calculate, for each of the active consumers of FY2024-25 the amount to be recovered based on their actual energy consumption during FY2024-25. Such amount shall be recovered during FY 2026-27 in equal monthly instalments, to be called as 'FY25 True up Charges', commencing from the first meter reading date falling on or after 1 May 2026 and concluding with the reading date ending on 30 April 2027," the order said.
"It is further ordered that BESCOM shall maintain a separate head of account, allocated for the purpose, to record the adjustment of the said amount to ensure full recovery of the deficit," it added.
Similarly Chamundeshwari Electricity Supply Corporation Limited (CESC) has also recorded a revenue deficit of Rs 121.71 crore and can collect an additional 15 paisa per unit for consumption in 2024-25, official sources said.
