Next in Gensol crisis; No-go for China in India's electronics

Time of India

21-04-2025

Next in Gensol crisis; No-go for China in India's electronics
Also in the letter:
PFC, IREDA mull sale of Gensol EVs to secure loans
The details:
Gensol is linked to BluSmart, which began scaling back operations on April 17.
Sources said Gensol serviced its loans using lease payments from BluSmart. With those payments halted, loan repayments are at risk.
The lenders are drawing up a list of potential EV buyers.
In early March, credit rating agencies downgraded Gensol's debt to D or 'status of default'.
Not just that:
Troubles on:
Last ditch:
Transitioning fleet operations to Uber to improve trip volumes and unit economics.
Raising $6.8 million in bridge funding from BP Ventures.
Selling assets to climate-focused private equity firm Eversource Capital in exchange for fresh capital.
Read ETtech's in-depth covering of the Gensol-BluSmart crisis:
Tech-for-stake: 10% cap likely for Chinese firms in electronics JVs
What's happening:
Tell me more:
Govt's POV:
A third of our code will be written by AI by 2025-end: Data security unicorn Druva CEO
Quote, unquote:
What's coming:
The big picture:
OpenAI's Sam Altman said AI already handles over 50% of coding tasks in some companies, and the demand for software engineers will soon decline.
Zoho's Sridhar Vembu believes AI could take over 90% of coding tasks.
Meta CEO Mark Zuckerberg told Joe Rogan that AI will automate mid-level engineering roles this year.
Salesforce has decided not to hire any software engineers in 2025, citing productivity gains from AI.
On a more cautious note, Bill Gates said AI will replace many jobs, but software development may not be the first to do so.
More CEOs eye exit as going gets tough, options spring up
The numbers:
In 2024-25, 141 managing directors (MDs) or chief executive officers (CEOs) departed from 2,590 NSE-listed firms.
This compares with 119 exits across 2,279 companies in 2023-24 and 133 exits across 1,994 companies in 2022-23.
Why it's happening:
New opportunities and talent shortage: A surge in job openings and a shortage of skilled leadership are prompting more CEOs and MDs to leave.
A surge in job openings and a shortage of skilled leadership are prompting more CEOs and MDs to leave. Heightened scrutiny & high expectations: Boards and shareholders are turning up the heat, showing little tolerance for underperformance or missed targets.
Boards and shareholders are turning up the heat, showing little tolerance for underperformance or missed targets.
Rising salaries: CEO pay packages in India are catching up with global benchmarks, which means companies are quicker to replace leaders who fail to deliver.
Chart-ed: Biggest data centres in the world
Lenders to Gensol are getting jittery as the company's troubles compound. This and more in today's ETtech Top 5.■ Automation in writing code■ More CEOs eye exit in 2025■ Chart-ed: Biggest data centresPower Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA) are planning to auction electric vehicles (EVs) acquired by Gensol to recover dues on loans extended to the company. These EVs were later leased to BluSmart.The two public sector lenders financed the purchase of over 5,000 EVs but are now concerned that Gensol's loans could turn into non-performing assets (NPAs) amid mounting regulatory pressure. ET reported on April 21 that investors in BluSmart Mobility's bonds may invoke an 'Event of Default' clause, demanding immediate repayment. BluSmart had raised over Rs 100 crore via non-convertible debentures (or corporate bonds), subscribed to by high-net-worth individuals and some retail investors.Sebi has barred BluSmart's founder brothers, Anmol and Puneet Jaggi, from accessing capital markets. In an interim order , it cited fund diversion, stock manipulation, and insider trading. The duo has 21 days to respond.Days before the storm hit Gensol (and BluSmart), Anmol Jaggi proposed strategic changes at BluSmart to shareholders. In an April 15 email , which ET has reviewed, Jaggi suggested three alternatives:India is weighing a proposal to cap Chinese equity in electronics joint ventures at 10%, and only if the deal includes a technology transfer clause.Amid US-China trade tensions, Chinese firms are increasingly willing to accept stricter conditions to retain access to the Indian market — a vital opportunity as US tariffs risk pricing their products out of American shelves.The Indian government is more open to allowing equity stakes from Chinese contract manufacturers and supply chain partners than consumer-facing brands as it seeks to nurture a self-reliant electronics manufacturing ecosystem.However, exceptions may apply for US or European companies relocating production from China to India. In such cases, Chinese suppliers could be allowed up to a 49% stake — but only under clearly defined conditions.India remains wary about China's long-term strategic goals despite recent signs of cooperation. Officials have repeatedly flagged concerns over critical supply bottlenecks in three areas: drilling machinery, equipment for manufacturing solar panels, and electronics.Keen to avoid overdependence on Chinese investment, a concern underscored by Vietnam's experience, the government is determined to maintain its control over the electronics sector.Druva founder and CEO Jaspreet SinghJaspreet Singh, founder and chief executive of data security unicorn Druva, expects artificial intelligence (AI) to generate about a third of the company's code by the end of 2025, reflecting a broader industry shift.'We have been experimenting with AI internally to see how it can be used to make it more productive. We also see use cases, like engineering. If not half, at least a third of our code will be written by AI by the end of this year," Singh told ET in an interaction.'It will be a threat for new coders coming into the system, I'll be lying if I say otherwise. But what is irreplaceable for now is domain experience: how data works, how its security works,' Singh added. He also noted that AI-driven efficiency will likely dampen hiring in the coming year.AI is reshaping how software is built, with startups and Big Tech acknowledging its increasing role in coding.CEO exits are rising across India in 2025 , with 41 top executives stepping down from NSE-listed companies in the March quarter—up sharply from 23 during the same period last year.This chart highlights the world's largest data centre markets in 2024, ranked by installed capacity (in gigawatts or GW). Northern Virginia tops the list with 6.98 GW, followed by major hubs such as Beijing, Chicago, Singapore, and Shanghai. The chart also shows the share of capacity under construction, again led by Northern Virginia, which has 5.38% of its total capacity in the pipeline.