New Delhi: The slowdown inside the car industry and the liquidity crunch within the marketplace are affecting the provider network adversely. According to the statistics from the Federation of Automobile Dealers Associations (FADA), the apex body of vehicle dealers, the entire dealership closures within the closing 18 months is an impressive 271 with 245 passenger vehicle dealership shutdowns. In Mumbai 34 have close, followed via New Delhi (27), Pune (24) and Chennai (15).
While Nissan registered the most supplier shutdowns which total at forty-four, followed through Hyundai at 39, Renault at 21, and Mahindra & Mahindra and Tata Motors at 20 each. As consistent with the dealers and financiers, a number of things are liable for this consisting of banks taking a careful approach on working capital loans, tight liquidity, channeling of finances into real estate through a few sellers and the slowdown in automobile sales, in keeping with a ToI file.
A Nissan spokesperson refuted the FADA records in an emailed statement, “We have had 25 dealership closures.”
Renault stated, “On the 21 dealerships final, the same is not authentic as we’ve ensured that in case of unavoidable closures, such centers are both taken over or new facility created within the identical market to make certain business continuity.” However, Maruti and Hyundai denied commenting.
Tata Motors VP (sales advertising and customer support, passenger vehicle commercial enterprise unit) Sibendra Barman stated, “During these 18 months, we’ve got severed our relationship with 21 dealer principals. However, at some point of the identical length, we’ve brought extra than fifty-four supplier principals who have supplied us with over 80 dealerships.”
“In the past 18 months, we’ve got had 5 supplier closures throughout all of the five states of southern India put together, and this is not anything unusual,” stated Mahindra and Mahindra leader of sales and advertising and marketing (automobile division) Veejay Ram Nakra.
New Delhi: The Centre is thinking about Rs seventy-four,000-crore bailout plan for the state-owned telecom businesses BSNL and MTNL. Its strategy includes presenting a good-looking go out package deal to heaps of employees, along with a further five in keeping with cent reimbursement (exgratia) to make the voluntary retirement scheme (VRS) attractive at the same time as offering for 4G spectrum and capital expenditure. It may be cited that BSNL is the largest loss-making public sector unit (estimated Rs thirteen,804 crores in the economic year 2019) inside u . S. A ., at the same time as MTNL changed into 0.33 with a loss of Rs three,398 crores.
Only debt-weighted down Air India has a higher loss than MTNL. If this bundle goes via, the two telecom PSUs will overtake Air India as the biggest drain at the national exchequer, according to a ToI report.
Officials aware of the matter informed the country wide publication that 4G spectrum valued at over Rs 20,000 crore will be allotted by means of the government and the rollout value of round Rs 13,000 crore will be paid via the PSUs. The authorities will foot the invoice of a little over Rs 40,000 crore toward the VRS bundle and early-retirement advantages.
The branch of telecom (DoT) has argued that closing down of PSUs will price Rs 1.2 lakh crore, consequently, this selection seems to be unviable. It also stated a strategic divestment might not locate many takers, attributable to the economic stress in the telecom quarter. However, a joint task alternative can simply be explored.
Many factors along with terrible management, the excessive body of workers value, misdirected and undesirable authorities interference, and sluggish tempo in upgrading to new generation have led BSNL and MTNL to spiral downwards during the last decade or so. Telecom enterprise is speedy migrating to 4G and preparing for 5G technology but those two PSUs are yet to move to faster and greater efficient era. Worth mentioning right here is that those have misplaced marketplace percentage in the mobile services commercial enterprise. Apart from this, the common revenue in step with the consumer (ARPU) of BSNL and MTNL is at Rs 38 in comparison to Rs 70 of personal players.