Tag: COVID-19 crisis

COVID-19 crisis: Automakers seek deferment of implementation of new technical standards

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As the disruption due to coronavirus throws the auto industry out of gear, automakers have made a representation to the Ministry of Road Transport and Highways (MoRTH) to postpone the mandatory implementation of some new technical standards for automobiles.

The industry has requested MoRTH to defer these changes slated for certain categories of automobiles, including two-wheelers, commercial vehicles and buses and passenger vehicles.

The apex body representing automakers in India, SIAM, has sought more time for implementing the set of regulations in the AIS-145 safety standards for automobiles due to be made compulsory in 2020, sources told CNBC-TV18.

Indian automakers have been upgrading safety features across all categories of vehicles in keeping with the Auto Industry Standards (AIS-145) in a staggered manner over the last couple of years now.

Upgrades such as the anti-lock braking system (ABS) in two-wheelers, and mandatory driver-side airbag and stringent crash-test requirements led to significant hikes in prices of vehicles last year. The BS-VI migration added costs of its own.

However, the submission from the auto industry this time is to seek more time before the new mandatory fitments can be built into vehicles, tested and validated.

Industry sources told CNBC-TV18 that the auto sector anticipates it will take at least three months before production can achieve a meaningful scale. Add to that, more time will be required to test these features, which will delay the process by a year.

The implication on costs due to these features will not be significant, but it will vary depending on model, the base price and the affordability of the vehicle segment.

While there are internal discussions taking place at the Ministry of Road Transport and Highways currently, there is no formal approval yet in terms of the extent of SIAM’s suggestions being accepted by the government. The industry is awaiting a decision which is likely to emerge in the days to come.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HUL boss Mehta unfazed by rising focus on local, says co’s “heart beats for India”

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As the call to buy local gets louder amid concerns over the impact of COVID-19 crisis on the economy, Hindustan Unilever Ltd (HUL) CMD Sanjiv Mehta has said that his company is sure of its Indian identity.

In a rare media interaction, Mehta told CNBC-TV18 that he is a proud Indian and that HUL’s “heart beats for India”.

Mehta went on to clarify that HUL is an Indian company registered under Indian laws and over 99 percent of the company’s products are manufactured locally, adding that HUL was as Indian as any domestic firm.

HUL, ‘The CEO Factory’ for India

Speaking on HUL’s Indian roots, Mehta said his company has been in the country for over 60 years. In 1958, it was already among the largest firms in India and made a profit after tax (PAT) of Rs 1 crore. In 2019, the company made a profit of Rs 6080 crore — a compound annual growth of 15 percent. In the same period that HUL grew its profits 6000 times, the Indian economy grew 1400 times.

Mehta said that consumers ultimately are the smartest decision makers and they will opt for good products that provide maximum value in the market place.

While Mehta alluded to HUL’s product manufacturing in India, it is also the leader in another kind of manufacturing –business leaders for India. For the last decade, HUL has been ranked by AC Nielsen as the ‘Dream Employer of Choice’.

HUL is taken extremely seriously in the government circles with many of its past chairmen being ‘Padma Bhushan’ and ‘Padma Vibhushan’ awardees.

Most famously, nobody gives more CEOs to corporate India than HUL. From Nestlé to Diageo and Airtel to Hindalco, there are currently around 400 HUL alumni who are heading across corporate India. In corporate circles, HUL is well known by the nickname ‘The CEO Factory’.

Commenting on the situation caused by COVID-19 which led to many businesses shutting down and running into losses, Mehta said there is no option but to open the economy gradually for resumption of demand.

Due to the unique nature of the current issue with multiple moving parts, he refrained from quantifying the impact on HUL’s business. However, the company in its post Q4 press release said that it believes that near-term demand is uncertain and consumer behaviour is likely to change.

The company added it is likely to see an upswing in categories like health, hygiene and nutrition. At the same time, there could be some adverse impact on discretionary categories and the out of home channel, in the short term.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19 crisis: European Union adopts 100 bn euro programme to save jobs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Council of the European Union adopted on Tuesday the regulation for temporary support to mitigate unemployment risks in an emergency (SURE) which allows financial assistance up to 100 billion euro of loans to member states, the Council said.

It is part of the emergency support package to tackle the economic impact of the COVID-19 crisis. The instrument enables the European Union (EU) member states to request financial help to finance the sudden and severe increase of national public expenditure after governments have spent millions to save jobs in countries that were hit by the lockdown, Xinhua reported.

EU leaders endorsed the plan on April 23 and called for the package to be operational by June 1, 2020.

Croatian Finance Minister Zdravko Maric, who chaired on Tuesday a videoconference of the ministers of finance of the EU member states, said that the COVID-19 pandemic has caused massive economic and social disruption and that many companies have had to rely on public support to preserve employment.

“SURE will be a vital safety net to protect jobs and workers as it will ensure that member states have the necessary means to finance measures to tackle unemployment and loss of income, as well as some health-related measures,” the Croatian minister said.

In order to provide requesting member states with financial assistance at favorable terms, the European Commission will raise funds on international capital markets on behalf of the EU, the press release said.

Also Read: US private payrolls drop by 20.2 million in April, the worst job loss in the history of ADP report

All loans will be backed by the EU budget and guarantees will be provided by member states according to their share in the EU’s gross national income (GNI). The total amount of guarantees will be 25 billion euros ($27.34 billion).

The statement said that the instrument will be available after all EU member states provide their guarantees and it will be operational until the end of 2022, with a possibility to extend the period for a further six-month. (1 euro = $1.09).

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devendra Fadnavis flays MVA govt for poor Covid-19 crisis handling

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bharatiya Janata Party (BJP) leader Devendra Fadnavis, here on Tuesday, targeted the ruling Maha Vikas Aghadi (MVA) government for “ineffective handling” of the Covid-19 crisis.

Fadnavis led a delegation of BJP leaders to Governor Bhagat Singh Koshyari and submitted a memorandum listing various demands. It also warned of statewide agitation against the MVA government.

The delegation included Ashish Shelar and Atul Bhatkhalkar (both MLA), Gopal Shetty and Manoj Kotak (both MP), and ex-legislator Vinod Tawde.

“The state government has proved completely wanting at handling the coronavirus crisis, which has led to total collapse of the health system. There is a serious question mark whether the administration even exists in the state,” said Fadnavis.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19 crisis : Nearly 13% museums around the world may never reopen

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nearly 13 percent of the museums around the world may never reopen, the UN’s cultural agency has warned, as about 90 percent of them globally have had to close their doors due to the COVID-19 pandemic.

On the occasion of International Museum Day Monday, two studies by the UN Educational, Scientific and Cultural Organisation (UNESCO) and the International Council of Museums (ICOM) said that museums have been especially affected by the COVID-19 pandemic, with nearly 90 percent of them, or more than 85,000 institutions, having closed their doors for varying lengths of time during the crisis.

Furthermore, in Africa and the Small Island Developing States (SIDS), only 5 percent of museums were able to offer online content to their audiences.

Nearly 13 percent of museums around the world may never reopen, the agencies said in a statement.

The two studies, involving member states and museum professionals, were aimed at assessing the impact of COVID-19 on museums and museum institutions.

They also aimed to find out how the sector had adapted to the pandemic and explore ways to support institutions in its aftermath.

Museums play a fundamental role in the resilience of societies , UNESCO Director-General Audrey Azoulay said.

We must help them cope with this crisis and keep them in touch with their audiences .

The study conducted by ICOM highlights the fact that museums that have been deprived of their visitors will face a decrease in their income.

Professions related to museums, their operations and their outreach could also be seriously affected.

We are fully aware of and confident in the tenacity of museum professionals to meet the challenges posed by the COVID-19 pandemic, said ICOM President Suay Aksoy.

However, the museum field cannot survive on its own without the support of the public and private sectors. It is imperative to raise emergency relief funds and to put in place policies to protect professionals and self-employed workers on precarious contracts.

In a tweet, Secretary-General Antonio Guterres said that museums may be temporarily closed, but they remain a source of knowledge and discovery for many – now through virtual tours in particular.

The analyses also explored how the sector was adapting to the pandemic and ways in which it could offer support once the pandemic ends.

With a view to affirm the resilience of art, UNESCO launched the ResiliArt movement last month, which, among other things, conducts virtual high-level exchanges between international professionals and draws support for the cultural world during the crisis.

Also Read: Private museums like MAP could change the way Indians view art museums

According to UNESCO, social protection of museum staff, digitisation and inventorying of collections and online content development, are among the top priorities that need to be addressed all of which require financial resources.

UNESCO also pointed out that since 2012, the number of museums globally has increased by almost 60 per cent to about 95,000 institutions, demonstrating how important they have become in national cultural policies over the past decade.

The study also revealed wide regional disparities, with Africa and Small Island Developing States (SIDS), accounting for only 1.5 per cent of the total number of museums worldwide.

Furthermore, only five percent of museums in Africa and SIDS were able to offer online content to their audiences.

This pandemic also reminds us that half of humanity does not have access to digital technologies, the UNESCO chief said.

We must work to promote access to culture for everyone, especially the most vulnerable and isolated .

These findings echoed a previous report on the implementation of the 2015 UNESCO Recommendation Concerning the Protection and Promotion of Museums and Collections, their Diversity and their Role in Society.

In it, the agency underlined the fundamental role that museums play in education, culture and in supporting the local and regional creative economy.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Franklin Templeton India winds up six credit funds amid COVID-19 crisis

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Franklin Templeton Mutual Fund on Thursday announced the closure of its six credit funds due to liquidity issues amid the coronavirus crisis.

The funds that will be shut are Franklin India Low Duration Fund, Ultra Short Bond Fund, Short Term Income Plan, Credit Risk Fund, Dynamic Accrual Fund, Income Opportunities Fund, the company said in a statement.

As of April 22, total asset under management by these funds was Rs 25,856 crore.

“There has been a dramatic and sustained fall in liquidity in certain segments of the corporate bonds market on account of the COVID-19 crisis and the resultant lock-down of the Indian economy which was necessary to address the same,” it said.

The fund house further said that mutual funds, especially in the fixed income segment, are facing continuous and heightened redemptions.

The trustee or the people authorized will continue to realize or dispose-off the assets of the schemes. The sale proceeds after the discharge of all liabilities and expenses will be paid to the unitholders in proportion to their respective interests in the assets of schemes.

The statement noted that the Trustees of Franklin Templeton Mutual Fund in India, after careful analysis are of “the considered opinion that an event has occurred, which requires these schemes to be wound up and that this is the only viable option to preserve value for unitholders and to enable an orderly and equitable exit for all investors in these unprecedented circumstances”.

It said that individual emails are being dispatched to the unitholders regarding the closure of the schemes.

(With inputs from IANS)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19 crisis has given India best chance to attract foreign companies: USISPF

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Facebook’s USD 5.7 billion investment in Reliance Jio in the midst of coronavirus pandemic is a reflection of the faith that foreign companies have in Indian economy’s potential and future growth, a top US-based India-centric business advocacy group has said.

In an interview to PTI, US India Strategic and Partnership Forum (USISPF) president Mukesh Aghi said the COVID-19 crisis has offered India the best opportunity to attract foreign investment and replace China as the world’s manufacturing hub.

“I strongly feel that once the COVID-19 crisis ends, India will have the best opportunity to attract hundreds of these (foreign) companies into the country,” Aghi told PTI.

It will not only create jobs but also bring in investments and keep the Indian economy’s momentum going.

The multi-billion-dollar investment announced by Facebook in an Indian company in the middle of the coronavirus pandemic shows that India is still a very attractive market on the digital commerce side, he said.

“The partnership between Facebook and Jio is a win-win value proposition for not only for both companies but also for citizens and consumers in India. It also reflects the faith of foreign companies in the potential of India’s economy and future growth,” Aghi said.

It is important that “India builds confidence” among foreign companies by assuring them of providing a “level playing field” as well as “transparency and stability” in policy making, Aghi said.

According to Aghi, India has brought in reforms in its corporate tax structure but it must look at its labour laws and land reform as well.

The momentum has to keep moving in the right direction to build the confidence of foreign investors, he asserted.

Because of the bitter experience that the US companies are having in China during this pandemic, wherein they cannot move their goods because of the many restrictions imposed by Beijing on them, the sentiment among these companies is: “We have to look beyond China and very fast,” he said.

Observing that tensions between China and the rest of the world are going to rise in future due to the COVID-19 crisis, Aghi referred to the USD 2 billion package announced by Japan for its companies to move their manufacturing base away from China.

“You will see more and more of that happening,” he said.

The COVID-19 crisis has shown that India can take up the role of global economic leader as it is taking care of its citizens while also helping its friends and people across the globe, he said.

“It has shown that in time of need, India as a friend can step up. So, from a global leadership perspective, I think the stature of India has gone up,” Aghi said.

He further said that USISPF has estimated that for India to become a USD 5 trillion economy, it needs roughly USD 100 billion-dollar investment on an annual basis.

At the moment, not only US companies but other companies too are looking for an alternative to China, he said.

“And If India plays its cards right, a lot of that (companies) can move into India,” he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Amid COVID-19 crisis, TCS not to lay off employees; freezes salary hikes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Largest Indian software exporter TCS on Thursday said it will not retrench any of its nearly 4.5 lakh employees, but has decided not to give any salary hikes this year.

The Tata Group company said it will honour each of its commitments on new hires by taking all the 40,000 people who have been given offers on board, unlike some other blue-chip companies that are reportedly having a relook.

The company reported a healthy profit jump for the March quarter, but hinted at very difficult time in the first two quarters of the current fiscal due to COVID-19 crisis, including a revenue contraction.

“Every offer that we have made will be honoured. We do not see any retrenchments,” TCS MD and CEO Rajesh Gopinathan told reporters over a call.

Its head of human resources Milind Lakkad elaborated that it has given out 40,000 offers to freshers and all of them will be onboarded as the year proceeds ahead.

Typically, colleges and universities will be on till June, and then the students will start joining, he added. However, in what may come as a dampener to the employees, it has decided to put salary hikes on hold, Lakkad said. “We have decided not to give any salary hikes this time,” he said.

Gopinathan said the company has an overall attrition of 12.1 percent, which is one of the best in the industry and affirmed commitment to look after the employees and appreciated their commitment to the company in its hour of crisis.

The company’s chief operating officer N Ganapathy Subramaniam said there are 3.55 lakh employees working in India at present, and 90 percent of them are now connected with secure workplaces to serve clients’ needs.

He also added that in the initial trends, the company has observed that productivity has increased in the new model of its associates working from home.

The COO said there are many learnings for the company on various aspects, including on why to have all the associates working from a single office and others as well, which will be taken on board in the future as well.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow