Foreign Media On Kerala's 'Fat Tax' And The Global Experience

The Covid-19 pandemic has made an unprecedented impact on the Indian businesses, particularly small and medium enterprises (SMEs) and startups. According to a joint survey by FICCI and Indian Angel Network (IAN), the pandemic has hit the businesses of around 70% startups.

With uncertainty in the business environment and an unexpected shift in priorities of the government as well as corporates, many startups are struggling to survive, it says.

In a nationwide survey on the 'Impact of Covid-19 on Indian Startups' involving 250 startups, 70% participants said their businesses had been impacted by Covid-19 and around 12% had shut operations.

The survey shows only 22% startups have cash reserves to meet the fixed cost expenses over the next 3-6 months, and 68% are reducing operational and administrative expenses.

Around 30% of the companies said they would retrench employees if the lockdown was extended too long. The 43% startups have already started 20-40% salary cuts over April-June.

Over 33% startups said investors had put the investment decision on hold and 10% said the deals had been scrapped. Only 8% startups had received funds as per the deals signed before Covid-19 outbreak, the survey revealed.

The reduced funding has forced startups to put a hold on business development and manufacturing activities, which has resulted in loss of projected orders.

The survey highlights the need of an urgent relief package for startups, including possible purchase orders from the government, tax relief and swifter tax refunds, and immediate fiscal support measures, including grants, soft loans and payroll grants.

Besides 250 startups, 61 incubators and investors also participated in the survey.

While 96% of investors accepted that their investments in startups had been impacted by Covid-19, 92% said their investments in startups would continue to be low over the next six months.

Around 59% investors said they would prefer to work with the existing portfolio firms in the coming months. Only 41% said they would consider new deals.

"A comparison of priority investment sectors before and during Covid-19 shows 35% investors are now looking at investments in healthcare startups, followed by EdTech, AI/Deep Tech, FinTech and Agri," said the survey.

Around 44% incubators surveyed said their day-to-day operations had been considerably hit by Covid-19. Most incubators are now supporting their portfolio firms by providing them virtual platforms to interact with mentors, investors and industries.

Dilip Chenoy, FICCI Secretary General, said, "The startup sector is stressed for survival at the moment. The investment sentiment is also subdued and is expected to remain so in the coming months. Lack of working capital and cash flows may lead to major layoffs over the next 3-6 months."

Indian startups needed an enabling ecosystem and flow of funds to continue operations, the survey said.

Padmaja Ruparel, President, Indian Angel Network & Co-Chair of FICCI Startup Committee, said, "In these uncertain times, as investors, we must play an important role to provide the Indian startups funding, mentoring and hand-holding support to stay afloat and come out at the other end of this crisis."

To that end, IAN recently announced a debt fund to help IAN portfolio companies raise working capital and ensure business continuity by partnering with debt providers.

This must be replicated on a wider scale, so a larger number of startups are provided the capital support to make it during these tough times, Ruparel said.

Cape Canaveral, May 31: SpaceX, the private rocket company of billionaire entrepreneur Elon Musk, launched two Americans into orbit from Florida on Saturday in a landmark mission marking the first spaceflight of NASA astronauts from U.S. soil in nine years.

A SpaceX Falcon 9 rocket lifted off from the Kennedy Space Center at 3:22 p.m. EDT (19:22 GMT), launching Doug Hurley and Bob Behnken on a 19-hour ride aboard the company’s newly designed Crew Dragon capsule bound for the International Space Station.

Just before liftoff, Hurley said, “SpaceX, we’re go for launch. Let’s light this candle,” paraphrasing the famous comment uttered on the launch pad in 1961 by Alan Shepard, the first American flown into space.

Minutes after launch, the first-stage booster rocket of the Falcon 9 separated from the upper second-stage rocket and flew itself back to Earth to descend safely onto a landing platform floating in the Atlantic.

High above the Earth, the Crew Dragon jettisoned moments later from the second-stage rocket, sending the capsule on its way to the space station.

The exhilarating spectacle of the rocket soaring flawlessly into the heavens came as a welcome triumph for a nation gripped by racially-charged civil unrest as well as ongoing fear and economic upheaval from the coronavirus pandemic.

The Falcon 9 took off from the same launch pad used by NASA’s final space shuttle flight, piloted by Hurley, in 2011. Since then, NASA astronauts have had to hitch rides into orbit aboard Russia’s Soyuz spacecraft.

“It’s incredible, the power, the technology,” said U.S. President Donald Trump, who was at Kennedy Space Center at Cape Canaveral in Florida for the launch. “That was a beautiful sight to see.”

The mission’s first launch attempt on Wednesday was called off with less than 17 minutes remaining on the countdown clock. Weather again threatened Saturday’s launch, but cleared in time to proceed with the mission.

SPACEFLIGHT MILESTONES

NASA chief Jim Bridenstine has said resuming launches of American astronauts on American-made rockets from U.S. soil is the space agency’s top priority.

“I’m breathing a sigh of relief, but I will also tell you I’m not gonna celebrate until Bob and Doug are home safely.” Bridenstine said.

For Musk, the launch represents another milestone for the reusable rockets his company pioneered to make spaceflight less costly and more frequent. And it marks the first time commercially developed space vehicles - owned and operated by a private entity rather than NASA - have carried Americans into orbit.

The last time NASA launched astronauts into space aboard a brand new vehicle was 40 years ago at the start of the space shuttle program.

Musk, the South African-born high-tech entrepreneur who made his fortune in Silicon Valley, is also chief executive of electric carmaker and battery manufacturer Tesla Inc. He founded Hawthorne, California-based SpaceX, formally known as Space Exploration Technologies, in 2002.

Hurley, 53, and Behnken, 49, NASA employees under contract to fly with SpaceX, are expected to remain at the space station for several weeks, assisting a short-handed crew aboard the orbital laboratory.

Boeing Co, producing its own launch system in competition with SpaceX, is expected to fly its CST-100 Starliner vehicle with astronauts aboard for the first time next year. NASA has awarded nearly $8 billion combined to SpaceX and Boeing for development of their rival rockets.

Trump also hailed the launch as a major advance toward the goal of eventually sending humans to Mars.

He was joined at the viewing by Musk, as well as Vice President Mike Pence, Commerce Secretary Wilbur Ross, Education Secretary Betsy DeVos, Florida congressman Matt Gaetz and Senator Rick Scott.

Earlier on Saturday, the crew bid goodbye to their families. Prior to climbing into a specially designed Tesla automobile for the ride to the launch site, Behnken told his young son, “Be good for mom. Make her life easy.”

During the drive, Behnken and Hurley passed former astronaut Garrett Reisman who held a sign saying, “Take me with you.”

Mumbai, Jun 27: The Bombay High Court observed that COVID-19 patients from poor and indigent sections cannot be expected to produce documentary proof to avail subsidised or free treatment while getting admitted to hospitals.

The court on Friday was hearing a plea filed by seven residents of a slum rehabilitation building in Bandra, who had been charged ₹ 12.5 lakh by K J Somaiya Hospital for COVID-19 treatment between April 11 and April 28.

The bench of Justices Ramesh Dhanuka and Madhav Jamdar directed the hospital to deposit ₹10 lakh in the court.

The petitioners had borrowed money and managed to pay ₹10 lakh out of ₹12.5 lakh that the hospital had demanded, after threatening to halt their discharge if they failed to clear the bill, counsel Vivek Shukla informed the court.

According to the plea, the petitioners were also overcharged for PPE kits and unused services.

On June 13, the court had directed the state charity commissioner to probe if the hospital had reserved 20% beds for poor and indigent patients and provided free or subsidised treatment to them.

Last week, the joint charity commissioner had informed the court that although the hospital had reserved such beds, it had treated only three poor or indigent persons since the lockdown.

It was unfathomable that the hospital that claimed to have reserved 90 beds for poor and indigent patients had treated only three such persons during the pandemic, advocate Shukla said.

He further argued that COVID-19 patients, who are in distress, cannot be expected to produce income certificate and such documents as proof.

However, senior advocate Janak Dwarkadas, who represented the hospital, said the petitioners did not belong to economically weak or indigent categories and had not produced documents to prove the same.

A person who is suffering from a disease like COVID-19 cannot be expected to produce certificates from a tehsildar or social welfare officer before seeking admission in the hospital, the bench noted and asked the hospital to deposit ₹10 lakh in court within two weeks.