BluSmart collapse sparks EV sell-off: Lenders race to recover dues by offloading 1500-2000 vehicles
Indian ride-hailing company
BluSmart
suspended its operations last month, prompting lenders and leasing firms to begin recovering dues by selling or leasing the
electric vehicles
they had financed. These lenders include banking, non-banking financial corporations, investment platforms, climate focused financers and other individuals of high net worth who now plan to offload 1500 to 2000 electric vehicles.
Several lenders have already taken possession of the vehicles, while others are still in the process of reclaiming assets.
The company had shut operations indefinitely after it failed to secure fresh funding, amid serious allegations of financial misconduct involving its founders, as per sources familiar with the matter, quoted by ET.
Alternative riding services emerge as takers
Delhi-based all-electric taxi service
Evera
and Uber-backed
Everest Fleet
have emerged as key contenders to acquire or lease chunks of these EVs.
Evera has already added 300 of the repossessed cars to its fleet and is currently in talks to lease an additional 800–1,000 vehicles. Everest Fleet has also initiated discussions but has yet to finalise a deal.
'There is a section of lessors who are in the business of leasing these cars, and they will find takers…but financial institutions like banks that want to recover their money want to sell these vehicles,' a source familiar with the matter told ET, adding 'several small fleet operators are also being approached.'
Commenting on the ongoing recovery and redeployment efforts, Nimish Trivedi, co-founder and CEO of Evera, said, 'we are busy getting these assets back on the road, and multiple lenders are having discussions with us,' adding that they have finalised many agreements and are currently looking at strengthening airport operations with this fleet.
Siddharth Ladsariya, founder and CEO of Everest Fleet said, 'as we look ahead, we will continue to take a measured approach aligned with operational viability and sector wide progress.'
Before Sebi's clampdown, Gensol Engineering had also signed a deal to sell 2,997 EVs to Chennai-based Refex Industries. However, the deal fell through on March 28, due to the conditions requiring the EVs to remain listed on BluSmart and disagreements over lease rentals.
Officially, the companies attributed the cancellation to 'evolving commitments'.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
Evolution of AI and its impact on the workplace
Dr Rao is currently teaching risk management in the institute of Insurance and Risk Management (IIRM). A career banker with Bank of Baroda, he held the position of General Manager - Strategic Planning, Later was Associate Professor with National Institute of Bank Management (NIBM) and was Director, National Institute of Banking Studies and Corporate Management (NIBSCOM). He writes for financial dailies on Banking and Finance and his work can be viewed in the public academic accomplishments include Ph.d in commerce from Banaras Hindu University (BHU), MBA ( Finance), LLB. He runs a Youtube channel - Bank on Me - Knowledge series He likes to share his perspectives with next generation potential leaders of the banking industry. His book on "Transformation of Public Sector Banks in India' was published in september 2019. His most interesting work is in blog. LESS ... MORE The most innovative and disruptive enabler in Industry 5.0 is the emerging scope of state-of-the-art technology – Artificial Intelligence (AI)- that has begun to reshape the business world, more so in recent years. In what form AI will evolve and how it challenges human intelligence to control its impact on people's lives is uncertain. AI refers to any system that can simulate human intelligence: reasoning, learning, problem-solving, creating artificial perception, and mimicking human voice. Keeping AI transition in view, the industry has moved on to build upon Technology 4.0, after exploring innovative tools such as Big Data, data analytics, block chain technology, Internet of Things (IOT), cloud computing, cyber-physical systems (CPS), cloud computing, robotics and automation, augmented reality (AR) virtual reality (VR), 3-D printing, and blockchain technology. Technology 5.0 is the convergence of advanced digital technologies with a human-centric approach, emphasizing collaboration between humans and machines, environmental sustainability, and societal well-being. AI in technology 5.0 is a great potential innovator with power to create value inconceivable for humans and may look like a disrupter in the near term. AI is a powerhouse possessing human like intelligence minus emotions. AI can achieve its targeted goals based on its design regardless of its consequences. Hence the debate is razing about regulating AI. Debut of AI The genesis of AI dates back several decades, it picked up pace after other collaborative technology tools combined with the expanded power of the internet, fuelled its wider applications in industries. The internet has significantly increased the power of AI to transform industries, societies, and everyday life. AI acts as both a catalyst and an infrastructure backbone for modern business management, transforming workplace dynamics. Moving from one level of technology to another – automation of processes to mimic the human mind, AI is capable of thinking and acting like humans, challenging real human intelligence. To understand how AI is influencing the industry workplace, creates/distorts employment opportunities, changes job roles/job profiles of workers, reshaping skills, changing shape of jobs, proliferation of gig worker community and many other dimensions of working world, it is necessary to understand its emerging nuances. Advancement of application of AI began with the rise of Machine Learning (ML) during the 1990s-2000s. Symbolic AI changed to data-driven algorithms based on ML, leading to the development of decision trees. ML models started learning patterns from data rather than rules. The entry of Big Data, the Internet, and Cloud computing in 2000 brought a seminal change in the AI capability. It was possible to create the data and infrastructure needed for training large language models (LLMs) and neural networks to be effectively used in every field generating intricate data sets. During 2010, Deep learning entered the AI ecosystem with AlexNet (Alex Krizhevsky) innovating the convolutional neural network while ImageNet (a collection of vast images) was created by Fei-Fei Li and her collaborators in 2007. It led to the development of Convolutional Neural Networks (CNNs), Recurrent Neural Networks (RNNs), and Generative Adversarial Networks (GANs). They collectively increased the capacity of AI to surpass human performance in vision, speech, and translation. Transition of AI architecture: The AI has now developed into Generative Pre-Trained Transformers (GPT) models. Google developed a powerful natural language processing model – Bidirectional Encoder Representations from Transformers (BERT) that uses the transformer architecture to understand natural languages. DALL-E, an AI model that generates images from text. AlphaFold developed by DeepMind, now part of Alphabet/Google, predicts 3D structure. AI has developed further on large language models (LLMs) and transformers, understanding coding and reasoning. Among the subparts of AI, ML is a system where computers learn from data to make decisions and predictions. ML is based on three broad methods (a) supervised learning – learns from labelled data (e.g., spam detection). (b) Unsupervised learning – finds patterns in unlabelled data (e.g., customer segmentation) (c) Reinforcement learning – learns by trial and error (e.g., game-playing AI). Robotics is also a subset of ML applied to machines that can sense, process, and act in the physical world, such as autonomous vehicles, industrial robots, drones, etc. Remotely controlling them or operating them with robotic process automation (RPA). Deep Learning (DL) is yet another subset of ML using neural networks with many layers (deep neural networks). DL is excellent for image recognition, speech processing, natural language tasks, etc. Natural Language Processing (NLP) enables machines to understand, interpret, and generate human language. With these tools, AI is extensively used in Chatbots, language translation, and sentiment analysis. Computer Vision (CV) as a part of an AI framework allows computers to interpret and understand visual information, leading to facial recognition, medical imaging, and object detection. Generative AI and Agentic AI can bring a sea change in the productivity of the companies, provided the employees are competent to deploy these tools. Impact of AI: The scope of application of AI tools is immense, which has enabled many technology entities to downsize their manpower. Many low-end roles are disappearing. Reskilling is the only option left with such people to stay relevant. AI bots are replacing human coders. It is estimated that during 2024, close to 150000 employees will be laid off globally. Another 50000 in the first five months of 2025. Global giants such as Microsoft, IBM, Google, Amazon, and CrowdStrike have downsized their teams. Traditional back offices in India are also reducing their staff strength, but Global Capability Centres are increasing intake. The role descriptions of many people are changing, posing a challenge to cope with the new skills. It is estimated that going forward, 19 million jobs are at stake. The role of HR is changing. They need to adopt an AI-based screening and recruitment process, and team members are shrinking. According to a report by US US-based Society of Human Resource Management (SHRM), technology is not a barrier when combined with human intellect, AI can enhance the synergy. Way forward: To rationalise the use of AI tools, even individuals should re-skill themselves. They need to reinvent themselves to sync with the AI-driven strategic job roles. Organisations should invest liberally in human capital to strengthen their capacity to harness AI. They should be exposed to using AI tools efficiently. Universalisation of technology literacy with a focus on AI/ML/DL applications is essential. The next challenge is to protect the digital architecture from cyber threats. Data security and data privacy are a fiduciary onus of the entities. Preventing data breaches, data compromises, and malware intrusions is the other possible risk. The Thales data threat report -2025 clearly outlines the operational risks arising from technology, including the use of AI. The industry has to balance between harnessing the power of AI, protecting the employees by reskilling them, and employing enhanced methods for robust and invincible data protection in the best interest of stakeholders. A 360-degree view of AI suggests that a high-quality business transformation is possible in the long run if the near-term hiccups in its operations can be handled with inclusive strategic efforts. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
Time of India
27 minutes ago
- Time of India
How the Satcom permit may force Elon Musk's Starlink to do in India what it has been refusing to do so far: Listen to ...
Elon Musk 's Starlink recently received a licence from the telecom department for providing satellite internet services (Satcom) in India. The licence is a key milestone that will take it closer towards launching commercial operations in the country. With this, Starlink becomes the third company after Eutelsat OneWeb and Jio Satellite Communications to get a licence from the Department of Telecommunications ( DoT ) to provide satellite internet services in the country. A fourth applicant, Amazon's Kuiper is still waiting for approvals. Starlink's satcom permit from the Indian government may now force the company to do what it had not been doing so far per se, which is cooperate with security agencies on matters related to India's national security. As a report in Economic Times says, the licence will make it mandatory for Starlink to share information, including details of users or owners of satellite kits seized in the country, particularly in the North-East region in the past few months, information that the US company was unwilling to share earlier. When Startlink said no to India's security agencies India's security agencies have reportedly pointed out the misuse of Starlink devices in Indian territory, especially in the border areas, officials said. However, the Elon Musk-owned company has been reluctant to provide details, directing agencies to use US law enforcement or international protocols. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Spiele kostenlos in deinem Browser - Kein Download oder Installation erforderlich! Taonga Farm Jetzt spielen Undo In March this year, the Ministry of Home Affairs (MHA) reportedly asked the Department of Telecommunications (DoT) to investigate, as Starlink's non-cooperation raised concerns. The DoT has not yet submitted its report, but officials note that with the satcom license, Starlink must comply or risk a show cause notice and potential license revocation. Experts have 'security warning' on Satcom services Experts warn that Starlink services in Bhutan and Bangladesh could lead to smuggled terminals in India due to challenges in geofencing international borders. Security remains a priority, and none of the three satcom licensees -- Starlink, Bharti-backed Eutelsat OneWeb, and Reliance Jio-SES -- have so far received security clearances, delaying commercial operations. While OneWeb and Jio-SES have trial spectrum and have conducted security demonstrations, Starlink, which received its Global Mobile Personal Communication by Satellite permit last week, has not yet been allocated trial airwaves. OneWeb and Jio-SES have had Satcom permits and IN-SPACe approval for over two years, while Starlink awaits regulatory clearance. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
33 minutes ago
- Time of India
Explained: China's monopoly on rare earth minerals spooking the world; what does it mean for India & what is it doing?
China's firm grip on rare earths, essential components in the production of phones, automobiles and missiles, is giving a headache to countries world over, including India. (AI image) China's firm grip and worldwide monopoly on rare earth metals, essential components in the production of phones, automobiles and missiles, is giving a headache to countries world over, including India. Despite mounting pressure from countries including the US, EU and India, China remains steadfast in its stance regarding export limitations of these critical rare earths. Recent reports have highlighted increasing worries within the Indian automotive sector regarding the limited availability of rare earth magnets. These components are essential for electric vehicles and certain parts in conventional internal combustion engine vehicles. Furthermore, India's industrial sectors have expressed apprehension over China's decision to restrict rare earth exports, particularly germanium. This plays a vital role in the production of semiconductors, fibre optic cables and solar panels. Critical minerals and metals, including cobalt, copper, lithium, nickel and rare earth elements, are fundamental components in manufacturing environmentally friendly energy solutions, from wind power installations to battery-powered automobiles. What's China's hold on rare earths? China has established control over critical mineral deposits worldwide. Rare earth minerals comprise a collection of 17 metallic elements. While these elements are found across various countries, extracting them is expensive and environmentally damaging, resulting in substantial pollution. The International Energy Agency reports that whilst China produces 61 % of globally mined rare earths, it dominates 92% of worldwide production output. Following Premier Li Qiang's decree implementing export controls on rare earths, China has reportedly intensified these restrictions after US President Donald Trump levied 146% tariffs on Chinese exports. Recently Trump said that Chinese President Xi Jinping has allowed some rare earths to flow to the US. In a recent column in TOI, Tanmay Kumarr Baid & Pranay Kotasthane of Takshashila Institution argued that by restricting shipments, Beijing is lifting prices worldwide and incentivising countries to set up processing elsewhere. 'Once the capital is sunk into new refining in the rest of the world, even a later U‑turn by China cannot quickly claw these customers back,' they said. However, experts Ajit Ranade and Shardul Manurkar believe that China's rare-earth dominance is not a fragile or accidental monopoly, it is a product of deep, deliberate, and sustained strategy. 'Attempts to counter this dominance must acknowledge the scale of the challenge,' they say. Also Read | Move away from China: Shein & Reliance aim selling 'Made in India' clothes abroad; to list India-made clothes on US, UK websites How much does it impact India? The Indian automobile sector continues to face challenges as China maintains restrictions on critical rare earth magnet supplies, even though nine parts manufacturers received endorsements for their import requests from the Chinese embassy. The flow of supplies remains halted, pending approval from China's commerce ministry. These magnets play a crucial role in the production of electric vehicles and are essential for various automotive components, including gear mechanisms and drive trains. The Society of Indian Automobile Manufacturers delivered a presentation to Indian government officials on May 28, urging immediate dialogue between India and China to expedite stalled approvals and simplify the complex procedures. The automotive industry body emphasised the need for bilateral discussions to address these regulatory challenges, according to a Bloomberg report. Saurabh Agarwal, Partner & Automotive Tax Leader, EY India says, 'The recent actions by China have significantly disrupted global supply chains, particularly through their increasing export control over critical commodities. This underscores the urgent need for India, and indeed any nation, to foster a self-sustaining economy. We must prioritize developing our own critical mineral resources and building an end-to-end domestic supply chain, especially as the world shifts towards greater self-reliance. ' 'Given the current trajectory of our growing economy, it's imperative that the government introduces a Production-Linked Incentive (PLI) scheme specifically for rare earth magnets and critical mineral recycling. This will be crucial in the mid-term for establishing a robust domestic supply chain,' he tells TOI. 'In the short run, we must leverage our diplomatic channels to engage with the Chinese government and resolve the immediate challenges around export control licenses. This is essential to prevent production stoppages in our industries,' he adds. Also Read | 'No longer any question..': Donald Trump says China's Xi Jinping has agreed to let rare earth minerals flow to US; sign of thawing tensions What India is doing India is currently negotiating with China regarding the procurement of permanent magnets made from rare earth minerals, whilst simultaneously exploring alternative supply channels for these vital components, according to commerce and industry minister Piyush Goyal. The minister confirmed that the administration maintains regular communication with domestic industry stakeholders to accelerate the development of indigenous sources. "There is a concern... our embassy is in dialogue with them (China)... commerce and industry ministry is also working," Goyal said, adding that the government had already begun work on developing alternate sources. The minister addressed concerns regarding China's halt on permanent magnet exports to India, acknowledging its impact on the automotive sector, white goods and other industries. He mentioned that whilst some companies have submitted applications, they anticipate favourable responses for permanent magnet approvals. Additionally, the government is collaborating with Indian Rare Earths Ltd to accelerate domestic resource development, Goyal stated. When questioned about potential production-linked incentive schemes for magnets, Goyal confirmed discussions with the automotive industry and expressed confidence in finding a solution. He noted that ongoing dialogues with innovators and startups indicate their willingness to support funding requirements and price adjustments necessary to stimulate sector growth and expansion. Also Read | Economy in dire straits, India's Indus Waters Treaty blow: Can Pakistan avoid the 'begging bowl'? Regarding alternative solutions, the minister highlighted potential technological developments within India. Goyal emphasised the collaborative efforts between government, industry, startups and innovators. He acknowledged possible short-term challenges but expressed confidence in achieving success over medium to long-term periods. Goyal recently said that the world must acknowledge the dangers of critical minerals and their supply chains being concentrated in a few geographies, as this concentration could impede economic progress of countries. He said that India has initiated measures, including support for startups conducting research and development, to discover innovative and alternative solutions, he noted. This will help reduce "our over dependence and over reliance on certain critical minerals," Goyal said. Critical minerals like copper, lithium, nickel, cobalt and rare earth elements play a vital role in advancing clean energy technologies. These critical minerals are fundamental components in the manufacturing of wind turbines, electricity networks, electric vehicles and batteries. As countries worldwide accelerate their shift towards clean energy, the requirement for these essential minerals continues to rise. The government's initiative for recycling critical minerals, including copper, lithium, nickel, cobalt and rare earth elements, is approaching its conclusive phase, according to a mines ministry official's statement. The National Critical Mineral Mission (NCMM) has received Rs 1,500 crore in the Union budget for recycling critical minerals, Dinesh Mahur, Joint Secretary in the Mines Ministry has said. The government's earlier approval of the National Critical Mineral Mission, with a budget of Rs 16,300-crore and a total allocation of Rs 34,300 crore distributed across seven years, aims to boost self-sufficiency and expedite India's shift towards green energy. The mission, which seeks to encourage exploration of critical minerals domestically and in offshore regions, anticipates a substantial contribution of Rs 18,000 crore from public sector enterprises. The primary aims of this initiative include enhancing exploration activities, lessening dependence on imports, securing mineral deposits abroad, advancing processing technologies for these crucial minerals and establishing recycling mechanisms. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
