#1. Lenders to bankrupt Go First airline approve Rs 425 crore in interim funding
The committee of creditors for Go First has approved an interim funding of Rs 425 crore so that the grounded carrier manages to fly again soon. The funding is subject to the carrier being given a no-objection certificate by the Directorate General of Civil Aviation. Lenders will also need to take approvals from their respective boards to disburse the new funding that isn't part of the unutilized credit lines with banks as those have been extinguished after the budget carrier was admitted to insolvency this month.
Why it’s important: Since Go Air has retained most staff, it may be able to resume services. Much will depend on the regulator’s approval and Pratt & Whitney’s ability to service engines of its grounded fleet.
#2. Reliance Industries tests consumer durables financing under Jio brand
Reliance Industries is piloting a consumer durables financing program under its Jio brand at select Reliance Digital outlets before a full-fledged launch of Jio Financial Services later this year. Customers would be offered the option of Jio Finance alongside schemes from other banks and non-bank lenders. Jio Financial Services is a venture resulting from the demerger of Reliance’s financial services business. Once demerged, it is expected to be the fifth-largest financial services company by net worth.
Why it’s important: Reliance is readying to challenge established financiers for consumer durables. Given the conglomerate’s track record of rapidly grabbing market share, this could lead to a major shakeup.
#3. India to start free trade talks with African customs union in 3-4 months
India and the five-member South African Customs Union nations are exploring a free-trade agreement and are expected to begin discussions in the next three to four months. The customs union, which comprises South Africa, Namibia, Botswana, Lesotho, and Eswatini, is the world’s oldest Customs union, dating back over a century. These nations accounted for around 2 percent of India’s total exports in 2022-23, amounting to approximately $8.91 billion.
Why it’s important: Indian has signed a slew of free trade agreements in the recent past. A trade deal with the African countries would help India get wider market access for goods that are already in high demand.
#4. Byju’s promises to release audited 2022 financials by September
Education start-up Byju’s, which lost its auditor after delaying financial statements, has told investors it will file 2022 audited earnings by September and 2023 results by December. Deloitte severed ties with Byju’s over its long-delayed financial statements. Board members representing Peak XV Partners, Prosus, and Chan Zuckerberg Initiative also stepped down.
Why it’s important: India’s most valuable start-up unicorn, valued last year at as much as $22 billion, is facing a crisis of credibility over delayed financial results. It has not said why the results have been delayed.
#5. Central government in huddle with bankers over stalled real estate projects
The government has initiated measures to address concerns over stalled real estate projects, which pose risks to homebuyers as well as lenders. It is holding regular meetings with bankers and the Reserve Bank of India over the matter. Although the Centre’s special window for affordable and mid-income housing investment fund revived several projects, officials said further action is necessary.
Why it’s important: India’s residential realty sector has been in the doldrums for the past few years. Many developers have been unable to complete housing projects, distressing homebuyers.
#6. Wearables manufacturing surges in India, troubling Chinese assembly lines
The rapid growth of wearables manufacturing in India is impacting Chinese assembly lines adversely, with many factories facing a sharply reduced order book, industry executives have said. Top wearables brands such as Boat and Gizmore are making most products in India in key categories of audio and smartwatch through electronics contract manufacturers such as Dixon Technologies and Optiemus Electronics.
Why it’s important: India has surpassed China to become the largest wearables market in the world as domestic shipments have jumped 81 percent in the first quarter of 2023 to 25 million units.
#7. Foxconn reaching out to business houses after chip joint venture with Vedanta stalls
Taiwanese contract manufacturer Foxconn has started reaching out to large Indian business houses as it seeks to partner with them to further its semiconductor manufacturing ambitions in the country. The year-old joint-venture with the Vedanta Group to build a semiconductor fabrication unit at Dholera in Gujarat could be on the rocks as there are differences between the two partners.
Why it’s important: The Indian government is said to be worried over the financial stability of Vedanta, which could at odds with the ambitious targets in chip making that the country is aspiring to.
#8. Market regulator to make rules stricter for mutual funds, overhaul fees
The board of the Securities and Exchange Board of India on June 28 could clear key recommendations, including an overhaul of the fee structure that mutual funds charge investors and a stricter code of conduct for the asset managers. The market regulator has also proposed sweeping changes to the total expense ratio, or the annual fee that mutual funds collect from unit holders.
Why it’s important: The mutual fund industry is worried about the sweeping changes that the regulator is contemplating. Some fear the moves would impact business in a big way.
#9. L&T Tech and BSNL ink deal to provide private 5G services to businesses
L&T Technology Services has tied up with Bharat Sanchar Nigam to deploy private 5G networks for enterprises in India, CEO and managing director Amit Chadha has said. The strategic partnership marks the entry of L&T’s arm into the private 5G landscape, with BSNL providing spectrum and network infrastructure and L&T offering enterprises devices, applications, and core integration.
Why it’s important: 5G technology services have emerged as the next big enabler and operators expect rapid adoption of private networks across major industries.
#10. World Health Organization widens investigations over Indian cough syrups
The World Health Organization, which has issued product alerts for at least three Made in India cough and cold medications since October, is investigating more products. While the global agency has not yet expanded the list of medical product alerts, it said this might change. All the products are syrup based such as paracetamol syrup, cough syrup, or vitamin syrup, a spokesperson said.
Why it’s important: Reports of substandard or falsified medical products are bound to be taken seriously. India has bolstered internal scrutiny but may need to do more to regulate medicine makers.
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