GVK Power and Infrastructure Ltd faces insolvency proceedings
New Delhi, Jul 16: GVK Power and Infrastructure Ltd (GVKPIL) will face insolvency proceedings for failure to pay loans to lenders, a corporate insolvency court has said.
The Hyderabad bench of National Company Law Tribunal (NCLT) issued the order on a petition of lenders' group led by ICICI Bank Ltd, GVKPIL said in a stock exchange filing.
The loan was originally availed of by GVK Coal Developers (Singapore) Pte Ltd over a decade ago, for which GVKPIL acted as a guarantor.
The NCLT bench issued the order on July 12, which was made public on Monday. The petition was filed by ICICI Bank in 2022.
NCLT appointed Satish Kumar Gupta as an interim resolution professional for managing the company during pendency of the insolvency.
"The corporate debtor has acknowledged its liabilities and admitted the factum of corporate guarantee in its annual reports for the FYs 2018-19, 2019-20, and 2020-21. As on June 13, 2022, the borrower was liable to pay USD 1.84 billion comprising principal amount of USD 1.13 billion, interest of USD 731.57 million and agency fee of USD 144,000," according to the NCLT order, which was made public by GVKPIL in the stock exchange filing.
Senior counsel K Vivek Reddy, representing ICICI, referenced a London court judgment from October of the previous year to support the insolvency proceedings against GVKPIL.
"The first default occurred in February 2017 and remains unresolved. GVKPIL, as the guarantor for the loan taken by GVK Coal, is liable. The London court confirmed this liability, and given GVK's failure to make any payments, bankruptcy is the necessary course of action," he stated.
In September 2011, ICICI Bank (Dubai, Bahrain, and Singapore branches), along with Bank of Baroda (Ras Al Khaimah), Bank of India (London and Singapore), and Canara Bank (London), sanctioned a term loan facility of Rs 8,356 crore and a letter of credit for Rs 292 crore to GVK Coal for acquiring coal mines in Australia.
Additional term loans of Rs 367 crore were sanctioned by other banks in March 2014 that was later increased to Rs 2,089 crore.
In March 2016, ICICI Bank discovered that GVK Group intended to sell its stake in Bangalore International Airport Ltd without lender consent, violating the facility agreements.
The banks filed an injunction application in a London court in April 2016, where GVK undertook not to sell its stake in Bengaluru airport.
Due to continued nonpayment of the loan, the lender banks filed claims before the London court for Rs 5,915 crore under facility agreement-I and Rs 1,236 crore under facility agreement-II.
In November 2020, ICICI Bank invoked its corporate guarantee, demanding Rs 5,000 crore towards principal and interest from GVKPIL.
GVKPIL expressed its inability to honour the payments but committed to repay after negotiating a solution with the Adani Group, requesting the bank to refrain from taking action, according to the order.
However, ICICI Bank proceeded to approach the NCLT in 2022 to initiate insolvency proceedings against GVKPIL. On July 12, the NCLT determined that as of June 13, 2022, GVKPIL was liable for Rs 15,576 crore, comprising Rs 9,463 crore in principal, Rs 6,113 crore in interest, and Rs 1.23 crore in agency fees.
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Cong takes swipe at PM over India not being part of US-led 'Pax Silica' grouping
New Delh (PTI) The Congress on Saturday said it is perhaps not very surprising that India is not part of a US-led strategic initiative to build a secure silicon supply chain, given the "sharp downturn" in the Trump-Modi ties, and asserted that it would have been to "our advantage if we had been part of this group".
Congress general secretary in charge of communications Jairam Ramesh took a swipe at Prime Minister Narendra Modi, saying the news of India not being part of the group comes after the PM had enthusiastically posted on social media about a telephone call with his "once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC".
In a lengthy post on X, Ramesh said, "According to some news reports, the US has excluded India from a nine-nation initiative it has launched to reduce Chinese control on high-tech supply chains. The agreement is called Pax Silica, clearly as a counter to Pax Sinica. The nations included (for the moment at least) are the US, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia."
"Given the sharp downturn in the Trump-Modi ties since May 10th, 2025, it is perhaps not very surprising that India has not been included. Undoubtedly, it would have been to our advantage if we had been part of this group."
"This news comes a day after the PM had enthusiastically posted on his telephone call with his once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC," the Congress leader asserted.
The new US-led strategic initiative, rooted in deep cooperation with trusted allies, has been launched to build a secure and innovation-driven silicon supply chain.
According to the US State Department, the initiative called 'Pax Silica' aims to reduce coercive dependencies, protect the materials and capabilities foundational to artificial intelligence (AI), and ensure aligned nations can develop and deploy transformative technologies at scale.
The initiative includes Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. With the exception of India, all other QUAD countries -- Japan, Australia and the US -- are part of the new initiative.
New Delhi will host the India-AI Impact Summit 2026 on February 19-20, focusing on the principles of 'People, Planet, and Progress'. The summit, announced by Prime Minister Narendra Modi at the France AI Action Summit, will be the first-ever global AI summit hosted in the Global South.
Prime Minister Modi and US President Trump on Thursday discussed ways to sustain momentum in the bilateral economic partnership in a phone conversation amid signs of the two sides inching closer to firming up a much-awaited trade deal.
The phone call between the two leaders came on a day Indian and American negotiators concluded two-day talks on the proposed bilateral trade agreement that is expected to provide relief to India from the Trump administration's whopping 50 per cent tariffs on Indian goods.
In a social media post, Modi had described the conversation as "warm and engaging".
"We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity," Modi had said without making any reference to trade ties.
