LIC claims dues from Essar before giving NOC to Rosneft-Essar deal

LIC, India’s top financial institution, before it gives the green signal to the $13 billion Essar-Rosneft deal wants its fair share. The Essar-Rosneft deal would be the largest inflow of foreign direct investment into the country.

LIC’s loan outstanding to Essar Oil is $125 million while its exposure to Essar Power is around Rs 1,500 crore. As per the company, it had received a proposal from group companies for flexible restructuring and it was decided before considering the proposal and the company have to clear all the dues.

The deal was announced last October when Prime Minister Narendra Modi met President Vladimir Putin during a meeting of BRICS leaders in Goa.

Replying to a leading new house, LIC has said that it will issue a ‘no-objection certificate’ (NOC) only after Essar clears all dues.

The stand taken by LIC has put a question mark on whether the all-cash transaction will receive all the necessary approvals before March 31.(News Courtesy :indiainfoline)

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