Top 10 biz headlines: IndiGo opts for P&W rival, L&T-Mindtree deal, & more

From IndiGo picking Pratt & Whitney rival CFM to IL&FS companies beginning debt servicing, Business Standard brings to you the top 10 business stories which made to the headlines on Wednesday

1. IndiGo picks Pratt & Whitney rival CFM for LEAP1-A engines, deal soon

IndiGo, the largest customer of Airbus’ fuel-efficient A320neo family aircraft with Pratt & Whitney (P&W) engines, is learnt to have decided on rival CFM International for LEAP1-A engines. Read more here

2. L&T faces delay in launch of open offer for Mindtree shareholders

Engineering major Larsen & Toubro (L&T) is behind schedule in the launch of its open offer for the shareholders of information technology company Mindtree. Read more here
 

3. IL&FS group companies labeled green allowed to start servicing debt

The National Company Law Appellate Tribunal (NCLAT) on Wednesday said that if the Infrastructure Leasing & Financial Services (IL&FS) companies placed under the amber category were not able to be reclassified into the green category by the next date of hearing on July 12, the appellate tribunal will pass orders asking such companies to service 100 per cent debt obligations of the provident and pension funds. Read more here

4. India Tourism could start working out of Air India's overseas offices

Cash-strapped Air India may soon join hands with the Ministry of Tourism for a working partnership overseas. The plan includes shifting of tourist offices at eight overseas destinations to Air India offices. Read more here

5. Tower firms' top line woes to continue despite 4G switch: CRISIL report

Telcos’ focus on densification of 4G network is unlikely to result in better top line for tower companies, a recent CRISIL report has suggested. As telcos stress on densification of 4G, the replacement of 2G and 3G base transceiver station (BTS) or signal transmitters with 4G will slow down the net BTS additions to about 155,000 in fiscal 2020 from 275,000 in fiscal 2019. Read more here

6. Borrowing costs come back to bite corporate earnings of India Inc

Borrowing costs have come back to bite corporate earnings after remaining muted for three years. The combined interest payment for India's top listed companies, excluding financial and oil and gas firms, was up 15.2 per cent year-on-year (YoY) during the six months ended March 2019, outpacing the change in net sales and operating profit.Borrowing costs have come back to bite corporate earnings after remaining muted for three years. Read more here

7. Passenger vehicle sales to outdo Siam's forecast, says M&M MD Pawan Goenka

Amid slowing sales and poor buying sentiment, Pawan Goenka, managing director, Mahindra & Mahindra (M&M), is hopeful that passenger vehicle sales in India in the ongoing financial year may do better than what the auto industry body has projected. Read more here

8. Capital crisis at financial institutions to test new government’s reforms agenda

key to success of the economic program of the new Narendra Modi-led NDA government will be fixing the capital crisis faced by the financial institutions in India. Shortage of capital could slow down the reforms agenda of the new government which will take on oath on Thursday, the Livemint reported. Read more here

9. Govt needs to share project risk with private sector: Rajiv Kumar

In an interview with the Hindu Business Line NITI Aayog outlines the agenda for the new government and says very strong foundation has been laid in the last 5 years. He advocates the revival of public-private partnership in a big way and also points out that the agenda of the new government must be to accelerate growth. Read more here

10. No-liquidity stress seen for NBFC-MFIs right now: Bandhan Bank CEO Chandra Shekhar Ghosh

Amid RBI’s proposal to impose liquidity norms on NBFCs, Bandhan Bank said it has not been witnessing any liquidity stress scenario for the NBFC-MFI sector, and it is currently lending to NBFC-MFIs “comfortably”, reported the Financial Express. Read more here