Amidst controversy, Mahindra Group announces that they are going to get publicity for the very first time in the company’s history.
But first, let’s get to the controversy.
A controversy fired up in the Hazaribag district of Jharkhand where a 27-year-old woman was allegedly run over by an employee of Mahindra Finance.
The employee is a loan recovery agent from the finance wing of the Mahindra Group, Mahindra Finance. The agent is alleged to run over a pregnant woman who is the daughter of a specially-abled farmer. The man is said to have not been able to pay his debt.
Therefore, the recovery agent forcefully took away the tractor he owed. As the 27-year-old pregnant woman protested, he allegedly ran over the woman with the tractor killing her instantly.
The father of the deceased spoke of being sure about accepting nothing less than justice. He declared that he wants the ‘murderer’ to be ‘hanged’ and needed no condolences otherwise.
Hours after the incident, the CEO of Mahindra Groups took to social media to address the gravity of the incident claiming to be ‘deeply saddened by the news and that the company will investigate deep into the matter.
In the middle of this, Mahindra Group announces going public by selling 30% of the company’s stake to the Canadian company Ontario Teacher’s Pension Plan Board at an equity value of Rs 2,371 crore ($300 million).
Ontario Teachers is a pension fund company based in Canada that works with the aim to provide retirement funds to teachers across Ontario. They are global investors who invest in mostly renewable and sustainability sectors as a part of social and environmental initiatives under their Responsible Investing scheme.
Under this initiative, Ontario Teachers bought a 30% stake becoming a shareholder of $19 billion Mahindra Susten, a renewable energy segment of Mahindra and Mahindra Ltd.
Mahindra Susten is a Solar EPC company. It provides an entire service of engineering, procurement, and construction in the Solar Industry sector.
Mahindra Group and Ontario Teachers will jointly acquire another 9.99% stake in Mahindra Susten by the next year according to the company.
Mahindra has promised to invest up to Rs1.75bn ($220m) and Ontario Teachers will invest Rs.35.5bn ($450m) for the next seven years consecutively
Ontario Teachers is proposed to set up an Infrastructure Investment Fund (InvIT) BY 2024.
An InvIT is basically like a mutual fund where mutual funds invest the sum received in financial securities, an InvIT invests the same in real infrastructure assets like roads, power plants, transmission lines, pipelines, etc. It is a combination of equity and debt investment. Read more: https://www.forbes.com/advisor/in/investing/what-are-invits-and-how-do-they-work/
Mahindra Susten will repay Rs 575 crore ($73 million) to Mahindra Groups as a shareholder loan.
This joint venture of Mahindra Group with the Ontario Teachers Pension Plan Board is going to give hard competition to other companies like Tata Powers and Adani Enterprises with their foreign ventures.
Insight into India’s renewable journey:
India’s renewable and green energy sector is still at its budding stage but with the advancement of trade and commerce in the country and an increasing number of foreign investments are going to take India to the next level in the Renewable Industry sector and eventually help increase its overall global market reputation.
There have been a good number of initiatives taken by the Government of India to increase inter-country renewable outputs keeping in mind the growing global crude oil and natural gas crises.
One such initiative is the SATAT Scheme launched by the Ministry of Petroleum and Natural Gas of India. SATAT elaborates on Sustainable Alternatives Towards Affordable Transportation which is can turn out to be the biggest boon in the automotive Industry. Read more:https://satat.co.in/satat/
It focuses on substituting Compressed Natural Gas (CNG) with Compressed Bio Gas (CBG) in vehicles which involves big OMCs such as Indian Oil, Hindustan Petroleum, Bharat Petroleum, Gas Authority of India Ltd, and Indraprastha Gas Ltd.
India imports most of its crude oil and natural oil which takes away a big figure from its revenue that could have been used for better reasons otherwise also influencing the overall GDP.
Advancement in the green energy sector will liberate India in many ways. It will free India from the unignorable number of imports of crude oil and natural gas.
This will lead India to contribute to a decrease in global carbon emissions and a decrease in the excessive use of fossil fuels.
Read More: RBI order no third-party recovery to Mahindra Finance
