Covid-19 crisis: Auto sales may see sharpest decline in 20 yrs, says Ind-Ra


The automobile sales may decline by up to 25 per cent in this financial year as compared to 2019-20 due to a complete washout in April and minuscule sales last month, according to rating agency Ind-Ra.

The decline (excluding in tractors) would be the steepest in the last two decades, much higher than that recorded during the global recession in 2008-09, and is likely to push industry volumes to the 2011-12 levels, Ind-Ra said in a statement.

The two-wheeler segment is expected to rebound faster, followed by passenger vehicles (PVs), while the decline in medium and heavy commercial vehicles (MHCV) is likely to be the steepest during 2020-21, it added.

The rating agency expects two-wheeler sales to decline by 20-22 per cent, PV by 22-26 per cent, light commercial vehicle (LCV) by 26-30 per cent and MHCV by 35-45 per cent year-on-year in 2020-21.

Also, monthly sales volume may not return to the pre-Covid levels before mid-2021-22, Ind-Ra said.

“Volumes could increase by a high-single to a low double-digit rate in FY22, on account of a pent-up demand; however, it is subject to an improvement in

NCLT approves a resolution plan for Aircel; UVARCL likely to get assets


The (NCLT) on Tuesday approved a resolution plan for Aircel, submitted by asset reconstruction firm UV ARCL. It has offered just 1.5 per cent of the total bank dues of Rs 20,000 crore owed by the company.

When contacted, the resolution professional refused to comment on the order.

In February 2018, the telco had itself filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (Code) after the company failed to repay its loans.

It was stated that the operator was facing trouble in a financially stressed industry, owing to intense competition, legal and regulatory challenges, high level of unsustainable debt, and increased losses.

There were various proposals, followed by legal issues, in the attempt to get investors. In 2008, AT&T held talks to buy Maxis’ stake but valuation was a stumbling block.

In February 2020, the ARC proposed a resolution plan. UV ARCL is promoted, among others, by professionals with equity participation of six public sector banks and two insurance companies, viz. Central Bank of India, Bank of Maharashtra, Union Bank of India, Bank of India, United Bank

Eurogroup Chief Mario Centeno Steps Down


Portuguese finance minister Mario Centeno said on Tuesday he was stepping down from his post and would also not be seeking another mandate as head of the Eurogroup.

Centeno has headed the Eurogroup, a framework for meetings of eurozone finance ministers, since December 2017.

Centeno will formally announce his resignation from the Eurogroup during a meeting of eurozone finance ministers on Thursday, he said.

His Eurogroup term was to end next month, and he would not seek another, he said on Twitter.

Centeno said he would now invite applications for his job, with a vote on his successor planned for July 9.

German Finance Minister Olaf Scholz said on Tuesday that Centeno had “done a very successful job”, including by contributing to “a whole series of advances” in the European stability mechanism and the banking and capital markets union.

As for his choice of successor, Scholz said “this is not a time for speculation”.

“But I can tell you that I and the German government have a clear vision.”

According the EU sources, current finance ministers likely to be interested in succeeding Centeno include Pierre Gramegna of Luxembourg, Nadia Calvino of Spain and Ireland’s Paschal Donohoe.

France’s Bruno Le Maire

Subscribe Now