News digest: Debt-laden Air India, Dabba trading, contract hiring, and more

From notices to Air India to auto majors stepping up contract hiring, BS brings you top stories to keep up with the latest news

Banks, aircraft lessors serve default notices on debt-laden Air India

State-owned airline Air India has started defaulting on government-guaranteed loans to lenders and aircraft lessors, triggering concern over its state of finances and credit-worthiness. The setback adds to the airline’s stress as it has failed to earn enough profit to cover the interest payment on its Rs 5-billion debt.

The situation has turned even more precarious as the government, the owner of Air India, remains non-committal on infusing cash into the company after a failed privatisation process recently. Of the Rs 18 billion committed to Air India in 2017-18, only Rs 6.5 billion has been released and the Union finance ministry is yet to decide on Air India’s repeated demands of an immediate requirement of Rs 31 billion. Read more

Apple developing app to comply with DND rules, end stand-off with Trai

The face-off between Apple and the telecom regulator could end soon, with the company ready with an alternative solution, said a government source. 

The company is reported to be developing an app that will make it possible for it to comply with the Indian regulations of Do Not Disturb (DND). It could be made available to its customers, before Diwali. Read more.

Auto majors step up contract hiring to meet rising demand across segments

Permanent job creation appears to be somewhat missing in the country’s fast-growing and employment-intensive automobile industry. Top automakers are resorting primarily to hiring temporary and contractual staff to meet the rising demand for vehicles across segments. 

An analysis of the employee data at the four top auto firms — Maruti Suzuki, Hero MotoCorp, Ashok Leyland, and TVS Motor — shows that less than 4 per cent of the 24,350 additional staff employed at the end of 2017-18 was permanent. Even as they grow, firms want to have flexibility in staff strength since demand often fluctuates. Read more.

RBI’s diktat on virtual currencies paves way for dabba trading in bitcoins

The Reserve Bank of India’s (RBI’s) April diktat that banks stop dealing in virtual currencies has paved the way for dabba trading in bitcoins and other cryptocurrencies. 

The grey market, operating in Mumbai and Ahmedabad, is seeing a flurry of activity in cryptocurrency trading, most of it in bitcoins.  Read more

From Flipkart to Reliance, e-tailers eye $28 billion in grocery segment

Two years back, Amit Agarwal, senior vice-president and country manager of Amazon India, predicted grocery would be the biggest money churner for online marketplace players. Mocked then, his competitions are now trying hard to catch up with the e-grocery space.

Estimated to be a $28-billion segment within the $65 billion online marketplace space, players such as Amazon, its biggest rival Flipkart and soon-to-be launched Reliance e-commerce are all pumping in their resources into this space. Read more