Nov 28, 2014: Govt agencies in six states have put out construction tenders with clauses barring firms that opted for CDR in recent years, a promo showcase for clean. Engineering companies that have had their debt restructured or even applied to creditors to have their loans recast in recent years could face stress after being barred from bidding for key projects in some states. Government agencies in at least some states Tamil Nadu, Karnataka, Andhra Pradesh, Rajasthan, Gujarat and Uttar Pradesh – have put out civil construction tenders with clauses keeping out companies that have gone through the corporate debt restructuring (CDR) process between 2010 and 2014. New sarkar, new tenders, new contracts for new allies, what a surprise?
What takes to grab Government contracts and crack the creeping complexities involved, even a 5th standard kid can answer this! We do need to hear such things with lovely articulation from charming governors and industry bodies (aka lobbyists) who say the conditions being imposed by state governments are unfair and anti-competitive. Sad they are hit, aren’t? If government agencies continue to ban companies in CDR from bidding for new projects, how will these companies come out of their financial problems? This defeats the entire rationale of CDR mechanism, allowing the companies to boost their revenue, via looting public funds! Shed some tears for poor the companies.