Top Headlines: Voda Idea defaults on payments, IT firms' hiring woes & more

From IT companies facing problems in hiring fresh candidates, Voda defaulting on June payments, TCS reporting fall in net profits, here are the top headlines on Friday morning

Vodafone Idea defaults on rental, energy payments for June to tower firms

Vodafone Idea, the joint venture between Vodafone Group Plc and Aditya Birla Group, has defaulted on rental and energy payments for June to telecom tower companies. According to a senior executive of a telecom tower firm, Vodafone Idea cited payment of adjusted gross revenue (AGR) to the government and the resultant cash flow problems for the default. “The company usually pays its dues by 3rd of every month, but this month we have not received any money. Vodafone Idea’s dues to all telecom companies run into several hundred crores,” the executive said. Read More...

Unsure of hiring fresh graduates, IT companies venture off campus

Uncertainty over onboarding of fresh engineering graduates this year has prompted many information technology services firms to opt for off-campus hiring. According to firms, this has become necessary as companies are not sure of deploying fresh graduates during this financial year as engineering colleges have not been able to conduct final semester examinations. “We give offers to students in their sixth semesters so that they join after their eighth semesters. The Batch of 2020 that was supposed have graduated by July is stuck — creating problems for the industry. Read More...

Talks between India, China on Hot Spring disengagement break down

In a blow to hopes of a Chinese withdrawal in the Hot Spring area of Ladakh, negotiators from China’s People’s Liberation Army (PLA) have refused to withdraw after crossing several kilometres (km) into India’s side of the Line of Actual Control (LAC). Government sources say local military commanders from the two sides have not agreed on the creation of a demilitarised, 2-km-wide buffer zone. Read More...

Setback for Tata, Adani, Essar: Gujarat scraps order to pay more for power

In a setback to Tata Power Mundra, Adani Power and Essar Power, the Gujarat government has gone back on its earlier decision to revise power purchase agreements (PPA), totalling 7,180 megawatt (Mw). According to state government sources, the earlier resolution allowing these developers to charge higher tariffs, “now stands cancelled”. It will now sign supplemental PPAs with these units on a “case-by-case basis” over and above the existing PPAs. The earlier resolution was issued in November 2018 after a high-powered committee (HPC) formed by the state government suggested new terms of PPA with cost escalation to be shared by consumers, lenders, and the project developer. Read More...

Covid-19 weighs on TCS numbers in Q1; net profit falls 13.8% to Rs 7,008 cr

Despite being pounded by pandemic-related factors in the first quarter of FY21, Tata Consultancy Services (TCS) exuded confidence there would be a quick recovery, saying that the impact of Covid might have bottomed out. The IT services major’s Q1 performance largely disappointed the street as the pandemic affected its revenues, profit, and operating margins harder than previously expected. Almost all the geographies and business verticals except life sciences and health care saw a decline in growth in the quarter. However, the company reported strong agreement wins, indicating a robust deal pipeline. Read More...

ED attaches assets worth Rs 2,800 cr in YES Bank money laundering case

The Enforcement Directorate (ED) on Thursday provisionally attached assets and properties valued at over Rs 2,800 crore in India and abroad belonging to YES Bank Co-Founder Rana Kapoor and the Wadhawans, promoters of Dewan Housing Finance (DHFL), in connection with the YES Bank money laundering case. These properties include Kapoor’s plush bungalow in Delhi on 40 Amrita Shergill Marg (worth Rs 685 crore), an independent residential building ‘Khursidabad’ at Cumbala Hill, three duplex flats at Nepean Sea Road, one at the National Centre for the Performing Arts at Nariman Point, along with eight flats at Indiabulls Blu in Worli. Read More...

Govt plans to raise Rs 20,000 crore by selling stakes in CIL, IDBI Bank

The Union government is considering a plan to raise as much as Rs 20,000 crore by selling stake in the world’s largest coal producer, and IDBI Bank to fund a stimulus programme aimed at boosting the virus-battered economy, officials with knowledge of the matter said. The proposal involves a share sale depending on the market sentiment, said the officials, who asked not to be identified, as the discussions are private. In case of Coal India, if valuations are not attractive, the company will buy back shares from the government, they said. Two calls made to the finance ministry spokesman remained unanswered. Read More...

Irdai sets up panel to study feasibility of forming a 'pandemic risk pool'

The Insurance Regulatory and Development Authority (Irdai) has constituted a working group to study the feasibility of forming a pool to address the risks arising out of a pandemic. The panel will submit its report in eight weeks. The lockdown to check the Covid-19 spread led to huge losses in businesses, but companies could not claim damages as their insurance cover didn’t include loss from damage to property, which is essential for “loss of profit” clause to get triggered in business interruption losses. Read More...

SpiceJet offers coronavirus hospitalisation insurance to passengers

SpiceJet passengers can now avail an insurance cover for Covid-19 hospitalisation by paying a minimum premium of Rs 443, the airline said on Wednesday ”Passengers can opt for the insurance cover ranging between Rs 50,000 and Rs 3,00,000 at a premium for as low as Rs 443 to Rs 1,564 a year (including GST),” the airline said. Read More...

Club Factory, Shein, Romwe 'selectively' shipping orders 

Days after the government banned 59 Chinese apps on concerns over data security and privacy, Chinese e-commerce companies Club Factory, Shein and Romwe have been selectively accepting and shipping orders to Indian consumers, according to users and ET’s own analysis. The 59 apps were quickly removed from Google’s Play Store and Apple’s App Store following the ban order by the Ministry of Electronics and Information Technology (MeitY). However, their websites remain accessible to users through India's telecom networks, and a few small internet service providers (ISPs). Orders on Club Factory were successfully placed as late as July 8, nine days after the ban was announced. Club Factory orders were also being shipped by multiple e-commerce logistics companies, according to a report by The Economic Times.