Top headlines: Tata Motors scouting for partner, no lockdown in Delhi

From Sebi to discuss Franklin move to wind-up business, Airtel Payments Bank rolling out accounts for MSMEs to IndiGo confident of working at 50% capacity, here are the top headlines of the day

Tamil Nadu announced announced another lockdown, but the Delhi government has clarified that it will not impose restrictions though coronavirus are rising in the national capital. Tata Motors is on the lookout for a new partner for its domestic passenger vehicle business, which the auto major is create into a new entity separate from its main company. In a relief for the mobile data customers, the spike in demand seen in April-May has stabilised which may solve the issue of slower speed but sudden surge in economic activities may bring back such woes. Here are the top news of the day:


After record loss, Tata Motors to scout for partner in car business

Tata Motors has swung to one of the steepest quarterly losses since the December quarter of 2018-19. To ride out the turmoil caused by Covid-19 disruptions in its Indian as well as UK subsidiary Jaguar Land Rover Automotive, the firm said it would review its business to save Rs 15,000 crore for the consolidated entity in FY20-21. The company, which is in the process of spinning off its domestic passenger vehicle business into a wholly-owned subsidiary, also said it was looking for a strategic partner and was in talks with automakers for the same. The company took a write-down of Rs 2,500 crore for the passenger vehicle business. Read More...

Covid-19 crisis: No plan for another shutdown, says Delhi CM Kejriwal

As Delhi braced itself for another spike in Covid-19 cases and Tamil Nadu extended a strict lockdown in Chennai and adjoining districts till June 30, Home Minister Amit Shah undertook a survey of Lok Nayak Jaya Prakash (LNJP) Hospital for its preparedness in dealing with a new wave of cases. At an all-party meeting, the cost of testing and treatment, especially by private hospitals, was the primary concern of all political leaders. Briefing reporters after the meeting, BJP leader Adesh Gupta said the government had agreed to subsidise 50 per cent of the cost of testing. A decision on capping hospitalisation charges by private hospitals will come after the NITI Aayog member V K Paul-headed committee gives its recommendations in the next two days. Read More...

Slower data speeds: Worst might be over, but only temporarily

For mobile customers facing slower data speeds and congestion because of rocketing demand in April and May, the worst might be over, even if it’s only a temporary respite. Demand, which shot up by 15 per cent, has stabilised. But data networks that are working at near peak capacity of 80-85 per cent (compared to 65-75 per cent pre-Covid) could get into a jam once again if economic activity suddenly picks up to pre-Covid levels and data demand shoots up again, say telecom operators. Read More...

We're confident of operating at 50% capacity: IndiGo CEO Ronojoy Dutta

The country’s largest airline, IndiGo, is seeing signs of growth in seat occupancy after resuming domestic operations recently. In an interaction with Business Standard, IndiGo Chief Executive Officer Ronojoy Dutta also said the airline had plans to raise extra cash from sale and leaseback of 13 aircraft and spare engines. The booking trend was encouraging, with growth in load factors and unit revenue, Dutta said. “Future bookings are coming along nicely,” he added. Domestic air travel resumed on May 25 after two months of suspension, while scheduled international flights still remain shut. Over 90 per cent of bookings in the first week of operations were for one-way trips and there was limited advance sale. Read More...

Covid-19 impact: After 60% fall in April, exports shrink another 36% in May

Exports contracted 36.47 per cent in May after a historic fall in April, even as the lockdown eased and ports cleared cargo. While the government says this offers hopes of recovery, exporters remain doubtful. Exports have now fallen for the third straight month. Except for iron ore, pharmaceuticals, spices, and rice, all other commodities have printed negative growth in May, the commerce department said on Monday. Also, crucial petrochemical exports continued to shrink, falling 68.4 per cent, up from 66 per cent in April. However, policymakers are less worried about the knock-on effects of the current series of major contraction on outbound trade in 2020-21 (FY21). Read More...

Airtel Payments Bank rolls out 'Suraksha salary account' for MSMEs

Airtel Payments Bank on Monday launched 'Suraksha Salary Account', designed specifically for Micro, Small and Medium Enterprises (MSME). India's MSME sector has over 60 million units and accounts for 29 per cent of India's GDP These units employ large number of informal labour force who are not eligible for social and healthcare benefits as part of their salaries, and lack of any financial protection makes them vulnerable, particularly in the current times, Airtel Payments Bank said. Read More...

Sebi board to discuss Franklin Templeton wind-up move, MF liquidity

The capital markets regulator, Securities and Exchange Board of India (Sebi), is likely to discuss legal issues concerning refunding investors of Franklin Templeton Mutual Fund (MF) and the status of the special audit against the fund house during its board meeting on June 25. The regulator could also apprise the board of details on the extent of redemption mutual fund houses are facing and the liquidity position of their debt schemes, said two persons in know. Read More...

Widen MSME scheme ambit: Private lenders to FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Monday held a review meeting with private banks and non-banking financial companies (NBFCs) to seek feedback to improve the Atmanirbhar Bharat Abhiyan economic package to deal with the impact of Covid-19. The private lenders asked the government to revisit some provisions in the Emergency Credit Line Guarantee Scheme (ECLGS), under which 100 per cent guarantee coverage is provided to all lenders to enable additional funding to the tune of Rs 3 trillion to smaller business enterprises, to make the scheme more attractive. The scheme is valid for existing customers of banks. Read More...

Mother Dairy ties up with Zomato to deliver fruits, vegetables in Delhi-NCR

Mother Dairy on Monday said it has tied up with food delivery company Zomato for supply of fruits and vegetables in Delhi-NCR. Mother Dairy, a leading milk supplier in Delhi-NCR, sells fruits and vegetables through more than 300 Safal outlets. To begin with, Safal will start this service from 11 of its stores. Each of the 11 Safal outlets will cater to a radius of 10 km around them. Consumers can avail the facility of home delivery by ordering the products through Zomato application, the company said in a statement. Read More...

Flipkart, Swiggy, Urban Company ramp up safety measures to win customers' trust

Safety and hygiene have emerged as the top priorities for startups in the services space as they seek to win the trust of consumers and partners. Ola, Urban Company, Grofers, Flipkart, Zomato, Swiggy, Amazon and Uber, among others, are investing significant capital in such measures, at a time when the fight against the Covid-19 pandemic has shaken the confidence of workers and consumers in the shared economy. These businesses face a two-pronged problem - getting partners, many of whom are migrant workers, back to work, as well as generating demand from consumers. Urban Company plans to invest Rs 20-25 crore this year to buy and distribute personal protective equipment kits alone, while Grofers is infusing Rs 90 lakh monthly on hygiene measures the Economic Times said.