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Economy + policy

1
Logistics

After ‘I do’ from Gati, Allcargo has a tough task ahead. Hint: Mix two DNAs and rebuild what’s lost.

With 46.84% stake in Gati, Allcargo wants to become India’s largest multi-modal logistics player. But the integration will be easier said than done, as the two companies have completely different DNAs. More importantly, the future of the union will rest on turning around Gati’s fortunes, which have been going downhill for the last few years.

Logistics

After ‘I do’ from Gati, Allcargo has a tough task ahead. Hint: Mix two DNAs and rebuild what’s lost.

With 46.84% stake in Gati, Allcargo wants to become India’s largest multi-modal logistics player. But the integration will be easier said than done, as the two companies have completely different DNAs. More importantly, the future of the union will rest on turning around Gati’s fortunes, which have been going downhill for the last few years.

Disputes

Resolution professionals on warpath with insolvency regulator IBBI over ad valorem fee on earnings

The IBBI has introduced an ad valorem fee linked to earnings of resolution professionals (RPs). Many RPs see it as discriminatory. They feel, while 0.25% looks nominal, it’s still a fee and charged without any service or support from the regulator. IBBI believes it has transparently followed all procedures. The matter is now before the Madras High Court.

Rural Market

Rural economy will be India’s lifeline in this epic crisis. After many years, farmers are smiling.

As the pandemic cripples urban centres, India will have to rely on its farm economy to provide relief to millions. Bharat or rural India appears to be smiling now, aided by bountiful rains, bumper harvests, and government schemes. Some luck with monsoon this year, and continued government support, will be a shot in the arm for farmers – and India.

Banking

Loan-waiver demands for the industry are unrealistic. India, and its banks, can’t afford it.

Public sector banks (PSBs) don’t have the financial muscle to afford large-scale loan waivers as a lifeline to the Indian industry. It’ll eventually have to be funded by the government, which is terribly stretched at the moment. Such a move will restrict PSBs’ lending activity and can impact economic recovery – the last thing India needs at this critical juncture.

Policy and regulations

The cost of a unilateral ban: The pesticides industry stares at an INR9,600 crore hole in business

The agri ministry's decision to ban 27 commonly used generic pesticides has stirred up a hornets' nest. A further review is necessary, as most of the pesticides falling under the proposed ban are highly cost-effective compared to their so-called alternatives. However, an addendum allowing export of the same pesticides has brought some relief to the industry.

Jobs

The government’s big skilling drive: RPL aims to raise incomes for millions swiftly in a new world

Around 6 million informal-sector workers are already enrolled under the Recognition of Prior Learning (RPL) programme. It promises to upskill large swathes of the population swiftly, sometimes in just two to three days. Some 100 companies, including L&T, Patanjali, and Berger Paints, have provided RPL certification to employees. The government claims the programme is making a difference.

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