Manufacturing in some of the important sectors in India has stopped. More companies have been making an announcement that they will shut down their factories because of the shortage of labor as well as raw materials. Also, there is a lack of any logistical support due to the ongoing lockdown in the country. The lockdown has been done to contain the spread of the coronavirus disease. It is having a drastic impact on their plants overseas.
Aditya Birla Group-owned Hindalco has made an announcement about their temporary shutting down or scaling down its operations at some of their aluminum and copper manufacturing facilities in accordance with the directions given by the government. The operations are managed by fewer staff members for the efforts of practicing social distancing.
E-commerce major, Flipkart said in a statement that it will resume its services. Also, Amazon said that it will be working with the government to ensure that the delivery of goods after the state governments had reached out to the companies, leading to the temporary stopping of accepting any new orders because of the reports of high-handedness by police everywhere.
The Delhi police said in a statement that they are engaged with the e-commerce firms and are also issuing passes to make sure that the agents are able to commute easily and deliver the essential commodities to the residents during the lockdown. The Bengaluru police have also prepared guidelines for issuing curfew passes to the delivery agents.
The Securities and Exchange Board of India (SEBI) may cut down the trading hours for commodities derivatives from 11.30 pm to 5 pm over the lockdown to contain the coronavirus is in place.This has been done after the submission by the brokers to the regulator who has been requesting measures after the announcement of the lockdown. Several brokers find it difficult to call even some of the staff in the office.
The Equity derivatives will be functioning until 3.30 pm for derivatives as well as the cash market. But, commodities used to remain open till late, majorly for the globally referenceable commodities including bullion, metals, and energy. The International markets will stay open round the clock.
Apart from the State Bank of India, Bank of India and the Bank of Baroda has announced a fresh credit line for the companies that have been troubled, they are also expecting defaults by the small and medium firms as the financial year is approaching the end. Union Bank and the Indian Bank have also made an announcement regarding similar measures taken so as to increase the limits of working capital.
Banks are also asking the Reserve Bank of India (RBI) to delay the classification of the non-performing asset (NPA) by three months. If a loan is not serviced for a total of 90 days, it is a bad debt for the bank. To ease the pressure caused as a result of the coronavirus lockdown, the corporates had to ask their respective banks and the government for a six-month liquidity line. This will enable them to make payments to their suppliers as well as employees.
The coronavirus outbreak has resulted in several situations in India. Prime Minister Narendra Modi had announced a 21-day lockdown to contain the spread of coronavirus pandemic. Now, because of the lockdown, there has been a sudden increase in the consumption of media majorly via mobile networks. It is not just for social media apps such as Instagram and Facebook, but for the dedicated video streaming apps that are now witnessing a massive demand. The Industry giants including Disney India, Netflix India, Facebook, Google, Amazon Prime Video have jointly conducted a virtual meeting so as to arrive at a solution to this problem.
As a result of the meeting, the heads of the industry decided to lower the default resolution of the content from HD (High Definition) and ultra-HD to SD (Standard Definition). It is lowered at bitrates at 480p on mobile networks. These measures will stay in effect till 14th April 2020.
On Wednesday, 25th March, the Aviation consultancy CAPA had made a projection of the initial losses of up to $3.3-3.6 billion for the aviation industry of India in the first quarter of the Financial Year 2021. This is a result of the announcement of the shut down of all the air services including the domestic air services until the month of June 2020 due to the spread of coronavirus.
The coronavirus pandemic had the most significant impact on the Indian aviation industry because of the strict border controls by some countries and the imposition of the travel ban on the people belonging to other nationalities in an effort by the government to contain the spread of the virus.
Some of the Indian ports including the ports owned by Adani Ports & SEZ Ltd have declared force majeure after the third-biggest economy of the Asian continent had announced a 21-day lockdown to contain the spread of the coronavirus pandemic.
The shipping ministry has also issued a letter that allowed the ports to use the coronavirus pandemic as a valid reason to declare the force majeure clause, as per the orders of the shipping ministry.
As per the statement by APSEZ, "All of our ports are currently operating. Force majeure has been made to ensure that wherever APSEZ has any of its commercial contracts, the time taken to handle and deliver the cargo does not apply."
PC: XDA Developers, SCC Online, Trak.in, Hindu business line, northeast india24