Reliance Industries (RIL) wants to take a long-term loan of Rs 5,000 crore for the purchase of textile company Alok Industries, which is being sold through the Bankruptcy Code and is in talks with 3 banks for this. Four sources aware of RIL's plan said that the company wants to take loans from State Bank of India (SBI), HDFC Bank and ICICI Bank. It does not want to invest its money in Alok Industries, which it acquired in March this year in a process run by the National Company Law Tribunal (NCLT). Reliance Industries, the country's most valuable company by market cap, is in the business of oil, textile, retail, and telecom sectors. The Ahmedabad bench of NCLT approved a bid of Rs 5,050 crore from RIL in March for the purchase of Alok Industries in collaboration with JM Financial Asset Reconstruction Company. The bid of RIL-JM ARC was slightly higher than the liquidity value of Rs 4,500 crore by Alok Industries. However, due to the ongoing litigation regarding the company, banks are still waiting for its dues.

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According to source, "RIL does not want to invest its money in the company. It decided to take a loan from banks and pay. The company is in talks with SBI, HDFC and ICICI Bank which is also causing delays. We have also approached NCLAT to expedite the process and have written a letter to the company to expedite payment. Lead bank SBI started insolvency proceedings against the company in June 2017. Alok's loan was present in 12 NPAs with outstanding dues of more than Rs 5,000 crore, which the RBI had asked banks to send to NCLT. Alok Industries of Silvassa is a fully integrated company interfering in the cotton and polyester segment business. Lenders owe a total of Rs 30,000 crore to the company, in view of which banks have to take 83% cut. Another source said, 'SBI had sanctioned Rs 1,800 crore for this loan. ICICI and HDFC have not yet decided on the matter. RIL has a credit top rating and these banks have been supporting the company in the past. Let's see how long it take to make a decision. '

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Interestingly, no one in HDFC Bank or ICICI Bank is listed on Alok Industries' website as a financial creditor. SBI, ICICI, HDFC Bank and RIL's spokespersons could not get an answer to e-mailed questions. Some state-run banks are reluctant to give loans to RIL as it has refused to provide a guarantee for the loan.

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