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SENSEX NIFTY DOLLAR EURO GOLD OIL

40,789.38 11,979.65 ₹71.27 ₹78.76 ₹40,471 $54.92
917.07 271.75 ₹0.10 ₹0.06 ₹232.00 $0.47

mint primer
QUICK EDIT
Consumption is Buoyant
down, but so too bourses
are our savings India’s stock markets have
recouped all their budget-led
losses, and then some. On Tues-
BY KARAN BHASIN day, the 30-share benchmark
Sensex and the 50-scrip Nifty
India has been witnessing a slowdown in consumption as well as
savings for a while now, raising questions over the growth of real surged 2.3% each. Both the
income in the economy. Mint explores the possible reasons behind indices had made meagre gains
this trend. on Monday, after Saturday’s
Union budget prompted a sell-
Saving public wealth off. Tuesday’s gains were driven
The gross savings rate in all BRICS countries (except Russia) has declined by a variety of global and
substantially—and by a similar quantum—since 2011. domestic factors.
Gross savings (% of GDP) Indian stocks, buoyed by nas-
50 cent signs of a manufacturing
50 revival, joined a China-led
46.25 China
40
Asian rally after Beijing wel-
35.13 comed assistance from the US
30.94 India to contain the spread of the
30 deadly coronavirus, which had
29.27 30.19 Russia earlier battered Chinese equi-
20
18.57 ties. Back home, inflation wor-
14.88 South Africa
ries may have receded, as the
17.54 14.43 Brazil virus scare could hit air travel
10
2011 2018 and depress global oil prices
Source: World Bank that tend to influence our local
price trends. Cheaper crude
Why are savings so What drives savings imports would also help narrow
1 important?
People can use their money for
2 behaviour?
Many believe interest rates are a
the current account deficit.
This should make the central
either consumption or savings. key factor in determining savings. bank’s job easier. Retail infla-
Savings are an important tool to It is, however, worth observing tion had risen to 7.35% in
help people smoothen out that at a time when our real December, and if its volatile
consumption. That is, they can use interest rates were negative, we elements such as fuel and food
the savings for a rainy day. had a higher savings rate. The show moderation, the central
However, savings are also savings rate has reduced since we
bank’s efforts to ease credit
important for the overall increased our real interest rates.
economy, as they help in This suggests that conventional need not get thwarted. Interest
financing investments—whether wisdom on the relationship rates need to stay low to aid an
they are public or private. between savings and interest rates incipient growth uptick, and
Therefore, higher savings would is too simplistic. Another factor that looks likelier than before.
ideally reduce the cost of that drives savings is economic
borrowing for private growth, which affects household
investments. Reduction in income growth. A higher rate of
government savings, deleveraging growth is likely to improve the
by companies and slower growth
of household savings are driving
savings rate, as individuals have a
choice to either consume or save
MINT METRIC
the fall in the savings rate. the monthly surplus. by Bibek Debroy

When a man’s legs turned blue,

3 What has been the trend in
savings rate?
India is not alone when it comes to a
Deep vein thrombosis - he did construe.
declining savings rate. Brazil, China and
The hospital took a look and said,
South Africa too witnessed a substantial New denim jeans need to be bled,
decline in gross savings as a percentage of
gross domestic product (GDP) since 2011.
Wash before wearing, is the clue.
The decline came amid the slowest growth
in world trade. In India, the savings rate as
a percentage of GDP has declined by
nearly 5% between 2011 and 2018. QUOTE OF THE DAY
I don’t think in today’s
4 Why cut exemptions
amid falling savings?
A complicated tax structure
5 Why is India’s savings
rate going down?
The fact that income has grown
condition it can be just govt
creates inefficiency in income over the last couple of years (albeit
spending which can pull
allocation. Savings exemptions aim at a slower rate) makes it difficult economy towards growth...I
to promote certain instruments to identify the reason for this fall.
when one could use better Even consumption growth has
strongly believe industry today
financial instruments to save. For slowed down, which should ideally will have to come out of
now, the government has left the translate to higher savings. One
option open for individuals to reason could be the shift towards
hesitation which you have.
choose the existing system or to services consumption such as
opt for the lower tax regime. health and education, which have
Besides, incentivizing savings become costlier. A bigger concern
through tax breaks is not the best is the rise in household debt. Easy
approach to encourage savings. availability of no-cost EMIs on NIRMALA SITHARAMAN
The impact of the proposed durables could be a big reason. FINANCE MINISTER
taxation system, however, has to Karan Bhasin is a Delhi-based
be evaluated. policy researcher

m MINT SHORT

Musk starts 2020 with a $13.5 bn gain in net worth

AP
Sophie Alexander & Anders Melin $41 billion net worth, leapfrogging tech
SAN FRANCISCO/ NEW YORK titan Michael Dell, casino magnate Shel-
don Adelson, Nike Inc. co-founder Phil

J
eff Bezos is still the world’s richest
person by a comfortable margin,
thanks to Amazon.com Inc.’s Janu-
ary surge that added $9 billion to his
net worth. But no one, not even Bezos, is
having as good a start to the decade as
Tesla Inc. chief executive Elon Musk.
On Monday, shares of the electric-ve-
hicle maker surged 20% to a record
$780, the biggest one-day gain since
2013. Tesla shares have climbed 86% in
less than five weeks, boosting Musk’s for-
Elon Musk is now world’s 22nd-richest
person with a $41 billion net worth.
tune by $13.5 billion, the most of anyone
on the Bloomberg Billionaires Index.
After starting 2020 as world’s 35th-
richest person, he’s now No. 22 with a
Knight and several others.
Musk, 48, owns about a fifth of Tesla’s
outstanding stock, which comprises the
bulk of his fortune. His majority owner-
ship of closely held Space Exploration
Technologies Corp. accounts for about
$14.6 billion.
By Monday’s close, Tesla’s market
capitalization had reached $140.6 bil-
lion, less than $10 billion from a second
pay hurdle. BLOOMBERG
feedback@livemint.com
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FLIP SIDE

US may soon have world’s

oldest nuke power plants
The Turkey Point Nuclear Power Plant in Florida, US. The facility’s reactors will remain in operation for 20 years beyond the
end of their current licences. By that time, they will be 80—the oldest reactors in operation in the world. ISTOCKPHOTO

Ari Natter tors, starting with three in Seneca, South Carolina.

feedback@livemint.com “There are economic benefits,” said Rounette Nader,
WASHINGTON Duke’s director of nuclear license renewal. “Continuing to
operate our existing nuclear fleet is cheaper than replacing

B
onnie Rippingille looked out at the wisps of steam curl- it.”
ing from the Turkey Point Nuclear Power Plant across The nuclear industry has been buffeted by a wave of early
Biscayne Bay with a sense of dread. In December fed- reactor retirements in the face of competition from cheap
eral regulators approved Florida Power and Light Co.’s natural gas and subsidized renewable power. Constructing
request to let the facility’s twin nuclear reactors remain in a new nuclear plant—the only one being built in the US is
operation for another 20 years beyond the end of their cur- years behind schedule and over budget—can cost billions of
rent licenses. By that point they’ll be 80, making them the old- dollars. Retrofitting an existing one is more likely to be in the
est reactors in operation anywhere in the world. hundreds of millions of dollars range.
“That’s too old,” said Rippingille, a lawyer and retired “It just makes sense,” said Maria Korsnick, president of the
Miami-Dade County judge who was wearing a blue print shirt Nuclear Energy Institute, a Washington-based trade group
with white sea turtles on it. “They weren’t designed for this that represents nuclear utilities. “I don’t think you should look
purpose.” at a plant just on calendar years, but rather the way that plant
With backing from the Trump administration, utilities has been maintained, so many components have been
across the nation are preparing to follow suit, seeking permis- replaced over the years. There is nothing magic about 80.”
sion to extend the life of reactors built in the 1970s to the Opponents such as Edward Lyman, a nuclear energy expert
2050s as they run up against the end of their 60-year licenses. with the Union of Concerned Scientists, argue that older
“We are talking about running machines that were plants contain “structures that can’t be replaced or repaired”,
designed in the 1960s, constructed in the 1970s and have been including the garage-sized steel reactor vessels that contain
operating under the most extreme radioac- tons of nuclear fuel and can grow brittle
tive and thermal conditions imaginable,” Utilities in the US are after years of being bombarded by radioac-
said Damon Moglen, an official with the tive neutrons. “They just get older and
environmental group Friends of the Earth. seeking permission older,” he said. If the vessel gets brittle, it
“There is no other country in the world that to extend the life of becomes vulnerable to cracking or even cat-
is thinking about operating reactors in the
60 to 80-year time frame.” reactors built in the astrophic failure. That risk increases if it’s
cooled down too rapidly—say in the case of
Indeed, the move comes as other nations 1970s to the 2050s a disaster, when cold water must be injected
shift away from atomic power over safety into the core to prevent a meltdown.
concerns, despite its appeal as a carbon-free alternative to Other concerns surround the durability of components
coal and other fossil fuels. Japan, which used to get more than such as concrete and electric cables, but an advisory board
a quarter of its electricity from nuclear power, shut down all to the Nuclear Regulatory Commission, the independent
its plants in 2011 after a tsunami caused a nuclear meltdown government agency that gave Turkey Point the green light
at three reactors in Fukushima. Only a handful have restarted to operate into the 2050s, said those risks could be managed
while others that can’t meet stringent new standards are safely “without undue risk to the health and safety of the
slated to close permanently. Germany decided that year to public”.
shutter its entire fleet by 2022 and is now having trouble The commission’s decision doesn’t sit well with Philip
meeting its ambitious climate goals. Other nations such as Stoddard, a bespectacled biology professor who serves as the
France and Sweden are allowing reactors to retire while they mayor of South Miami, a city of 13,000 on about 18 miles away
diversify into solar and wind power. from the Turkey Point plant. He keeps a store of potassium
By contrast, the US Nuclear Regulatory Commission is iodide, used to prevent thyroid cancer, large enough to pro-
poised to decide this year on requests by subsidiaries of vide for every child in his city should the need arise.
Exelon Corp. to extend the life of two nuclear reactors at its “You’ve got hurricanes, you’ve got storm surge, you’ve got
Peach Bottom Atomic Power Station in Pennsylvania, about increasing risks of hurricanes and storm surge,” said Stod-
100 miles from Washington, and Dominion Energy Inc. to dard, 62, from the corner office in a biology building on Flor-
extend the life of two nuclear reactors at a power plant in ida International University’s palm-tree lined campus. All of
Surry, Virginia. this not only increases the likelihood of a nuclear disaster, it
Dominion has notified the commission it intends to ask also complicates a potential evacuation, which could put even
permission to extend the life of two more reactors north of more lives at risk. “Imagine being in a radiation cloud in your
Richmond, Virginia. Duke Energy Corp. has said it plans to car and you’re sitting there running out of gas because you’re
seek license extensions for its entire fleet of 11 nuclear reac- in a parking lot in the freeway,” he said.

BOOKMARK
The making of the happiest place on earth
Richard Snow tells the remarkable story of how Walt Disney’s focus and self-confidence helped
him create the famed amusement park in the face of a backlash from family and friends

T
his is not the first time a book has been written on Walt Disney and one of America’s great
masterpieces, Disneyland. But what historian and author Richard Snow brings in his new
book, Disney’s Land: Walt Disney And The Invention Of The Amusement Park That Changed
The World, are minute details of ambition that turned hundreds of acres of Southern California
orange groves in Anaheim into a fairy-tale castle, which Disney called “the happiest place on
earth”. It was a place, as Disney imagined, where people “could live among Mickey Mouse and
Snow White in a world still powered by steam and fire for a day or a week or forever”. The book
is filled with anecdotes of how the businessman strategically planned Disneyland. In the begin-
ning, for instance, you learn that one of Disney’s daily ritual after returning from his movie
studio was feeding his poodle, Duchess, a “wienie”, or a cold frankfurter, by leading it from
room to room while throwing pieces on the floor. He used a similar strategy to attract the visi-
tors: placing visual delights throughout Disneyland like the Moonliner, the Sleeping Beauty
Castle, or the Mark Twain riverboat. Disney’s close ones, however, were not a fan of his ideas.
But he persevered and financed the park against his own life insurance policy. Disney’s Land
is more than just the story of Disney’s determination to build Disneyland. It’s a reminder that
you need to be a little crazy to make dreams come true.

Write to us at businessoflife@livemint.com POOJA SINGH

PEANUTS by Charles M. Schulz

 Telegram Channel: https://t.me/KittusWealthJourney

NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 14 NO. 32 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR) 24 PAGES

PLAIN
FACTS
WHAT DATA SAYS ABOUT WHY INDIA’S WOMEN
WEDNESDAY, FEBRUARY 5, 2020
LIVEMINT.COM
THE POLICE’S BIASES uP2 VCs GET A RAW DEAL uP7

DON’T MISS
Sensex floats higher on
oil, recoups budget loss
Markets rise 2.3%, the most in more than four months, tracking gains in Asia
Nasrin Sultana m MINT GRAPHITI
We are increasing our information mechanism to a newer level,

AirAsia’s Tony Fernandes steps

nasrin.s@livemint.com PUMPED UP says CBDT chairman P.C. Mody. PRIYANKA PARASHAR/MINT
MUMBAI
aside amid Airbus bribery probe Equity markets recorded their best day since September as oil prices were clobbered on fears
that the coronavirus outbreak will destroy demand in China, the world's largest crude importer.
Every big transaction
I
Tony Fernandes will leave his role as chief ndian shares surged on
executive officer of AirAsia for two months Facebook Tuesday after a sharp bud- Brent crude ($/bbl) Sensex (right-hand scale)
while the Malaysian government examines increases 72 42,000
get-day sell-off. Stocks
corruption claims. Chairman Kamarudin
Meranun also stepped aside. See Page 5
parental
control
features in
Messenger
rose the most in more than
four months, tracking 68
41,253.74

40,789.38
41,500
LOWER oil will benefit
industries including
aviation, consumer
goods and automakers.
you make, taxman
gains in Asian markets, as
Punjab National Bank sees rise in
bad loans, posts Q3 loss of ₹492 cr
Kids app
bit.ly/2ugWUkg
crude oil prices slumped to the
lowest level in 13 months.
Lower crude prices will
64 66 41,000
A lower oil bill will also
will be watching you
create more fiscal space
State-run Punjab National Bank reported a benefit a range of industries 60 40,500
for the government to
loss of ₹492.28 crore in the December that use oil and its derivatives, stimulate the economy. Gireesh Chandra Prasad ciency in tax collection and on
quarter, against a profit of ₹246.51 crore a including airlines, consumer gireesh.p@livemint.com adding more taxpayers come
56 40,000
year ago, on the back of higher provisioning
goods makers, vehicle manu- NEW DELHI at a time when a slowing econ-
for bad loans. See Page 6 CRUDE prices have fallen
facturers, paint companies, 54.81 omy has made it harder for the
20% in the past month,

T
52 39,500
and refineries. A lower oil 31 Dec 2019 4 Feb 2020 indicating oil could have
he income tax depart- tax department to achieve the
import bill will also help create slipped into bear market. ment will track more 12.7% growth in direct tax col-
Coronavirus epidemic may take more fiscal space for the gov- Source : Bloomberg
high-value transactions lections in FY21 while nominal
weeks to stabilize, warn scientists ernment to stimulate the
PARAS JAIN/MINT
of individuals to ensure that GDP growth is expected to be
With the novel coronavirus spreading across economy. because of fears related to the rel. Prices have fallen 20% in tively,” said Claudio Galim- these get reflected in their only 10%.
the globe and new infected cases being BSE’s benchmark Sensex deadly coronavirus outbreak. the past month, indicating oil berti, head of demand, refin- income tax returns, Central “We are increasing our
reported every day, scientists contend that it surged 917.07 points, or 2.3%, Investors are weighing could have slipped into bear ing and agriculture analytics at Board of Direct Taxes (CBDT) information mechanism to a
may take a few more weeks for the epidemic
to 40,789.38. This is the big- China travel restrictions and market territory. Brent prices S&P Global Platts. chairman P.C. Mody said in an newer level and the reporting
to show any signs of stabilizing. See Page 19
gest gain since 23 September business shut- are down 17% this In India, which imports interview. entities (third-
2019. The broader 50-share downs alongside Shares in Japan, year. “In best- more than 80% of its oil needs, Greater use of CBDT says it will party financial
Nifty advanced 2.32% to measures Beijing China, Hong Kong case scenario, we low prices may give the gov- technology, data make greater use institutions) are
Latest changes in Companies Act 11,979.65 points. With this, is introducing to and Korea rose as see a slight reduc- ernment more room to analysis and arti- being increased.
may impact Tata vs Mistry case of technology,
both the indexes have support growth as much as 2% after tion in global announce reforms and man- ficial intelligence data analysis Once we have this
The corporate affairs ministry on Monday recouped losses incurred on the hit to its econ-
notified an amendment to the Companies Monday’s record GDP in first half age the tight fiscal situation, to comb through
and AI to comb
information avail-
the day finance minister Nir- omy mounts. of 2020 from our analysts said. large transac- able with us along
Rules, 2020, adding a provision for majority mala Sitharaman presented Meanwhile, Hong $720 billion previous outlook. “Lower crude prices are a tions taking place through large with the data of
shareholders to buy out minority
the Union budget. Kong reported a wipeout in China In the worst case, big positive for Indian markets in the market will transactions the taxpayers, we
stockholders. See Page 6
Asian markets gained, sup- death from the we expect a while gains in other global also help in track- will be in a posi-
porting Indian stocks. Shares coronavirus, con- recession. In the markets boosted sentiment,” ing people who tion to compare
in Japan, China, Hong Kong firming the second fatality best-case scenario, global GDP said Atul Bhole, vice president do not file their returns despite almost on a real-time basis as
Chinese companies to go all out and Korea advanced as much outside mainland China. sees reductions of 0.2% in Q1 of investments, DSP Mutual entering into many high-value to what high-value financial
at auto show despite coronavirus as 2% after Monday’s record On Tuesday, crude prices and 0.15% in Q2, and China’s transactions. By correlating transactions a tax payer is
The coronavirus outbreak may have hurt $720 billion wipeout in China hovered around $54 per bar- by 0.8% and 0.2%, respec- TURN TO PAGE 6 the spending and investments doing and how is he filing the
businesses in China, but companies in the made by people with their returns of income,” said Mody.
world’s biggest auto market are expected to known sources of income, the He, however, said it was not
leverage the Delhi Auto Expo to aggressively ARTHANOMICS EX MACHINA GUEST VIEW department wants to make correct to call it surveillance.
explore opportunities in India. See Page 8 R. JAGANNATHAN RAHUL MATTHAN MANISH SABHARWAL &
GOPAL JAIN sure that people do not evade
See Page 14 See Page 14 See Page 15 taxes. The emphasis on effi- TURN TO PAGE 16

Airtel posts ₹1,035 cr Govt arms itself with powers to ban import or export of any item
December quarter Utpal Bhaskar &
Gireesh Chandra Prasad
So far, the government had
powers to only ban imports
The measures are aimed at
narrowing the trade deficit
lever to the government to fos-
ter consumption of local prod-
goods in the domestic market.
“Section 8B (of the Act) is
merged two separate bodies
handling anti-dumping and
and exports of gold and silver with China, which has flooded ucts and boost manufacturing, being substituted with a new import safeguards to form the
loss on high AGR bill NEW DELHI under the Customs Act, 1962.
Once approved, the amend-
the Indian market with items
such as toys, firecrackers
said Abhishek Jain, tax partner
at EY. “On the practical
section to empower the Cen-
tral government to apply safe-
Directorate General of Trade
Remedies, similar to the US

Navadha Pandey yet to be seen, the company
navadha.p@livemint.com said.
NEW DELHI The earnings announce-
ment comes two weeks after
T
he government has pro-
posed to amend the Cus-
toms Act to give it wide
powers to ban imports and
exports of goods that may hurt
the local economy, clearing
ment, through the Finance
Bill, will expand the govern-
ment’s power to ban imports
or exports of all goods.
“This power will be exer-
cised only in exceptional cir-
and solar power equip-
ment. The steps come
amid a global rise in pro-
tectionist policies to
shield home-grown com-
panies amid slowing economic
side, the power may be
exercised only in
extreme situations,”
Jain said.
The government also
proposes to amend the Cus-
guard measures, in case any
article is imported into India in
such increased quantities and
under such conditions so as to
cause or threatening to cause
serious injury to domestic
International Trade Commis-
sion, to create a trade defence
mechanism that can respond
to developments in a compre-
hensive and timely manner.
The government has

B
harti Airtel Ltd posted a the apex court agreed to hear the way for it to bar imports of cumstances,” a government growth. toms Tariff Act of 1975 to industry,” according to gov- recently initiated more than
loss of ₹1,035 crore, its Airtel’s modification plea filed cheap toys and firecrackers official said on condition of The new powers to protect strengthen the mechanism to ernment documents.
third quarterly loss in 14 after the court ordered the from China. anonymity. the economy may provide a prevent dumping of cheap In May last year, India TURN TO PAGE 16
years, as the company set aside company on 24 October to pay
funds to pay dues to the gov- ₹35,586 crore of adjusted
ernment and comply with a gross revenue (AGR) dues by
Supreme Court verdict. 23 January to the government.
The Delhi-based telecom In the September quarter,
operator swung to a ₹1,035 the company reported a
crore loss in the
quarter ended 31 Mobile revenue
record loss after
having to set
From Rothschild to tea vendors, the curious mix of DHFL creditors
December from a grew, led by a aside ₹28,450 ANIRUDDHA CHOWDHURY/MINT
profit of ₹86 crore towards Shayan Ghosh They are all part of the 454 creditors are water suppliers mission of proper proof is key,
strong focus on
crore in the year quality users dues related to shayan.g@livemint.com claims adding up to ₹119 crore Shree Enterprises (Packaged which makes the chances of
earlier, Bharti license fees and MUMBAI that have been put up before Drinking Water) with a claim recovering dues quite thin.
and helped by
Airtel said in a spectrum usage the Reserve Bank of India-ap- of ₹5,580 and Fresh Water “The corporate insolvency
the recent hike

D
statement on charges, includ- ewan Housing Finance pointed administrator for Service (₹3,408). resolution proc-
Tuesday. Consol- in tariffs ing penalties and Corp. Ltd (DHFL), DHFL under the category of These claims The largest ess (CIRP) allows
idated revenue interest costs. India’s first non-bank operational creditors. The have been sub- claim from an small business
from operations “During the lender to face bankruptcy pro- largest claim is from audit firm mitted to DHFL’s operational establishments a
rose by 8.5% to ₹21,947 crore. quarter ended December 31, ceedings, has a curious mix of Pathak H.D. & Associates Llp administrator R. creditor is ₹29.5 cr good shot at
In December, the company 2019, the group has continued operational creditors. On one for ₹29.5 crore and the small- Subramania- recovery from
and the smallest
increased tariffs by as much as to recognize, in the same man- end of the spectrum, there’s est is from florist Yuvraj Phool kumar, a former defaulting com-
40% and raised the minimum ner, its obligations under the investment bank Rothschild & Bhandar—for ₹240. m a n a g i n g is for ₹240— panies and thus
monthly recharge for prepaid judgements/orders. Accord- Co. India Pvt. Ltd. And then, Under the Insolvency and director and chief from a florist the insolvency
users to ₹45. ingly, during the quarter, the on the other end of the spec- Bankruptcy Code (IBC), oper- Twenty-two tea and coffee joints have claimed DHFL owes them, executive of code has allowed
Mobile revenue grew, led group has further recorded trum are neighbourhood tea ational creditors are those who in total, a little less than ₹1 lakh. Indian Overseas them an avenue
by a strong focus on quality interest of ₹1,048.1 crore, shops and florists, all claiming are seeking to recover their Bank. for recovery. However, sub-
users, and in some part, bene- which has been presented as that their dues haven’t been dues for goods or services that owes them, in total, a little less being verified, according to Industry experts said that mitting proof could be a cum-
fitted by the recent tariff exceptional item,” the com- cleared by the company, they have provided. than ₹1 lakh and have filed the list available on DHFL’s while IBC has given opera- bersome task for small estab-
actions although the full according to documents Notably, 21 tea and one cof- claims with the administrator. website. tional creditors a fighting
impact of the tariff actions is TURN TO PAGE 5 reviewed by Mint. fee joint have claimed DHFL To be sure, all these claims are Also featuring in the list of chance to recover dues, sub- TURN TO PAGE 6
 Telegram Channel: https://t.me/KittusWealthJourney

02 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI
PLAIN
FACTS

WHAT DATA SAYS ABOUT POLICE BIASES

Police prejudices and politics could be interfering with important policing duties, suggests data from a 2019 survey of attitudes and operations of cops
Vishnu Padmanabhan &
m MINT GRAPHITI Chart 1b Chart 2
more likely to commit crimes, Chart 1a
states the Common Cause- Strong prejudice against minorities, migrants Minorities tend to distrust police more Most receive training at the time of joining
Pooja Dantewadia Level of distrust* in police among different groups (in %) Police personnel who received training (in %)
CSDS survey. Similar but Response of police personnel to the question: Are these people
NEW DELHI weaker biases are also found naturally prone to committing crimes? (in %) 45 In the past More than At the time Never
for Scheduled Castes (SCs) and 37 2 to 3 years 3 years ago of joining

T
Very much Somewhat Rarely Not at all No response
he protests against Scheduled Tribes (STs). These 32 31
the Citizenship are reciprocated by these com- 30 29 25
Upper caste Hindus 27 Human 17
Amendment Act munities through distrust. rights 41
12
(CAA) have raised Muslims, SCs and STs are OBCs
Caste 24
several complex more wary of the police than Dalits 16
questions about what it means other communities, as per sensitization 45
11
to be an Indian—but it has also 2018 CSDS police survey data. Scheduled Castes/Tribes
Crowd 30
raised basic questions about (bit.ly/31ovXat). (Charts 1a & 1b) Muslims Sikh Muslim Other Scheduled 12
Backward Castes control 51
the role of the police in the Police is a state subject so Scheduled Christian Class Upper 4
Indian state. Opposition lead- there are significant differen- Migrants from other states Tribes castes
ers have criticized the way the ces in the strength of prejudice *Respondents who either said they somewhat distrust the police or 8% of the police personnel interviewed had joined the police force in the three
0 20 40 60 80 100 very much distrust the police. years before the survey.
police have handled these pro- across different states. In Uttar
tests, questioned their atti- Pradesh, one of the states with Chart 3 Chart 4

tudes to minorities and sug- significant CAA protests, 56% Across India, there’s significant support for extra-judicial resolutions to crime Political interference in criminal probes
gested political interference in of all police personnel feel that Personnel in support of police punishment over legal trial (in %) The obstacles police face during criminal
policing. And as Muslims are more 80 investigations (in %) Witness
per a 2019 survey One reason for naturally prone to Police punishment Legal trial unwilling to
cooperate
of police atti- these biases crime; in Delhi,
tudes and opera- may be the lack the figure is 43%; 60 Departmental
tions data, at least but in other 54 pressure
of training. 71
few criticisms states, such as 44
Junior officers,
may be grounded
especially, are
Kerala (34%) and 40 Lack of time 65
in truth. Punjab (23%), the 60
In 2019, Com- under-trained figures are much Prosecution 58
mon Cause, a lower. These prej- 20 duties
53 Political
non-profit, and udices extend pressure
the Centre for the Study of beyond religion and caste. Victim unwilling
Developing Societies (CSDS), a Migrants, even those from 0 43 45 to cooperate
Odisha Himachal Delhi Assam Gujarat Andhra West Haryana Jharkhand Bihar Nagaland
Delhi-based research organi- other states, are also treated Pradesh Pradesh Bengal
zation, surveyed 11,834 police with suspicion. Half of all Punjab Madhya Telangana Uttarakhand Rajasthan Maharashtra Kerala UP Karnataka Chhattisgarh Overall Weak laws that
personnel across 21 states police personnel believe that Pradesh favour the accused
about their perceptions, atti- those from outside states are Police personnel were asked if they agreed with (i) minor offences being punished by police is better than a legal trial and (ii) for the greater good of society, killing dangerous
criminals is better than a legal trial. Police who agreed with both (i) and (ii) are considered as favouring extra-judicial means or police punishment Source: Status of Policing in India - 2018 and 2019 reports (Common Cause and CSDS)
tudes and professional skills naturally more prone to crime.
AHMED RAZA KHAN/MINT
(bit.ly/2v3WD4a). One reason for these biases
Results from the survey pro- could be lack of training. at protests) when they joined address any inherent biases in infrequent is resources. though, enjoy significant sup- has long been an agenda for in reform when they them-
vide valuable insights into how Police personnel, especially the police force. (Chart 2) their behaviour. In Rajasthan, Between 2012-16, just 1.3% of port within police forces. The police reforms. Going as far selves are tied to crime and
the police in India works. For a junior officers, are over- For other issues, such as for example, a study found that total police spending across 2019 survey found that, across back as the first National interfere in investigations.
start, across states, police for- whelmingly under-trained: caste sensitisation or human delivering soft-skills training states went to training, as per India, 44% of police personnel Police Commission in 1977, (bit.ly/2RXk5td). (Chart 4)
ces seem riddled with preju- only 6% of all police personnel rights, lack of training could be to police personnel on com- the 2019 survey’s calculations. were willing to use extra-judi- committees have recom- Even after a landmark 2006
dices. When asked to what received in-service training. an even bigger problem. More munication, mediation, lead- Another recurring criticism cial means to address crime; in mended more training, Supreme Court judgement,
extent certain communities This could be affecting how than 10% of all police person- ership, stress management, of Indian police forces, both a few states, such as Nagaland greater investment and better which directed better demar-
were prone towards crime, they operate. For instance, nel said they had never attitude change improved through these CAA protests (78%), Chhattisgarh (68%) and oversight mechanisms. But cation between politics and
police personnel display a def- when it comes to crowd-con- received any training or both the quality of police work and other issues (such as Bihar (60%) the proportion is many of these reforms are yet police, 65% of police person-
inite bias against minority trol the survey found over half human rights issues or caste and public perception of the encounter killings), is the pro- much higher. (Chart 3) to materialize. The inertia nel have frequently experi-
communities. Around 50% of of all police personnel had last sensitisation. Training in these police (bit.ly/2UpoXZu). One pensity to use extra-judicial Addressing this propensity could partly be the result of enced political interference in
all police personnel believe received training on how to areas is especially important big reason why training, like means to resolve situations. for extra-judicial resolutions weak political will. In India, investigations.
that Muslims are somewhat handle crowds (such as those because it can help police the one in Rajasthan, remains Extra-judicial resolutions, and general police prejudices politicians may see little value vishnu.p@livemint.com

m TENNIS DASHBOARD Can investment in education weaken growth?

PRIYANKA PARASHAR/MINT
The world's best tennis players are determined by their official rankings. While higher rankings reflect better performances in Nikita Kwatra
tournaments held over the past year, they do not reveal much about the quality of opposition players face or how players are oping nations. As human capi-
performing relative to their peak. One way to measure this is to use the Elo system where players are ranked based on their nikita.k@livemint.com tal is scarce in developing
performance against other players. For instance, using Elo a lowly-ranked player upsetting a higher-ranked player will generate MUMBAI countries, it prevents govern-
more points for the victor (and a greater loss in points for the loser) than if the higher-ranked player beat the lower-ranked ments from hiring enough

I
player. The Elo ratings below, calculated by tennisabstract.com, include top tennis players' current rating and their highest-ever nvestment in human capital bureaucrats to collect taxes.
rating (allowing comparisons between players' current performance and their peaks). has long been considered an Less tax collection means gov-
important ingredient for ernment’s investment in the
ATP SINGLES RANKINGS economic growth. Greater public education system
Player Country Age Rank Elo Ranking Peak Elo Ranking human capital is meant to pro- remains weak and it can’t hire
pel economic growth, but enough teachers on its payroll.
Novak Djokovic Serbia 32 1 2241 2470 research suggests that the So, human capital remains low
Rafael Nadal Spain 33 2 2187 2368 relationship may not be as and is mostly employed by the As economies start growing, the government absorbs human
straightforward. private sector for capital, diverting it away from the private sector, says a study.
Roger Federer Switzerland 38 3 2170 2379
An A s i a n m SNAP FACT the production of
Dominic Thiem Austria 26 4 2073 2123 Development goods. from the private sector. This weaker institutions could have
Daniil Medvedev Russia 23 5 2065 2128 Bank Institute As economies may lead to a slowdown of pro- more human capital but less
Stefanos Tsitsipas Greece 21 6 2068 2129
(ADBI) research paper start growing, the government duction in the private sector, GDP. As a result, a counterin-
authored by C a r l o s absorbs more of the human the authors argue. tuitive negative relationship
Alexander Zverev Germany 22 7 1983 2147 Bethencourt and Fernando capital in the economy. It hires As nations with poor institu- may emerge between human
Matteo Berrettini Italy 23 8 1929 2020 Perera-Tallo argues that while more bureaucrats to collect tions need more bureaucrats capital and economic growth
Gael Monfils France 33 9 1903 2067 there are significant returns to taxes and also hires teachers and have greater incentive to in developing economies.
increase in education at a for its public education sys- expand the education system, Also read: Human Capital,
David Goffin Belgium 28 10 1921 2038 micro-level, at a macro-level tem. The fact that a significant this increases the amount of Economic Growth and Public
Fabio Fognini Italy 32 11 1880 2007 human capital development part of human capital is human capital, but reduces Expenditure (bit.ly/31mnpkq)
Roberto Bautista Agut Spain 31 12 1949 2014 can have a weak or even nega- recruited during this early production and ultimately Snap Fact features new and
tive impact on economic per- stage of the development gross domestic product (GDP). interesting reads from the
Stan Wawrinka Switzerland 34 13 1935 2146
formance, especially in devel- process diverts human capital Thus, countries with world of research.
Diego Schwartzman Argentina 27 14 1901 1940
Andrey Rublev Russia 22 15 2007 2021

WTA SINGLES RANKINGS

Player Country Age Rank Elo Ranking Peak Elo Ranking m NEWS IN NUMBERS CORRECTIONS AND
Ashleigh Barty Australia 23 1 2132 2184 CLARIFICATIONS
AFP

Simona Halep Romania 28 2 2069 2169 38.6% 4 Mint welcomes comments,

Karolina Pliskova Czech Republic 27 3 2049 2068
What is it? The percentage of votes What is it? The suggestions or complaints
President Peter Mutharika won in Malawi’s number of times about errors.
Elina Svitolina Ukraine 25 4 1990 2092 elections last May. India has won the
Readers can alert the
Belinda Bencic Switzerland 22 5 1958 2105 Why is it important? Now a Under-19 Cricket
newsroom to any errors in the
Bianca Andreescu Canada 19 6 2089 2138 constitutional court has annulled the World Cup out of paper by emailing us, with your
polls on the charge that there were 12 editions so far. full name and address to
Sofia Kenin U.S.A 20 7 2022 2022 irregularities in polling. This is the first Why is it feedback@livemint.com.
Kiki Bertens Netherlands 27 8 1979 2028 time an election has been legally important? In
overturned since the African country the ongoing 13th It is our policy to promptly
Serena Williams U.S.A 38 9 1951 2473 respond to all complaints.
became democratic in 1964. Fresh polls edition of the World Cup, defending Readers dissatisfied with the
Naomi Osaka Japan 21 10 2084 2115
will have to take place in five months. champions India beat Pakistan in the first response or concerned about
Petra Kvitova Czech Republic 29 11 2023 2145 Tell me more: The results were disputed by of the semi-finals played on Tuesday. Mint’s journalistic integrity may
Madison Keys U.S.A 24 12 1979 2069 the president’s rival, Lazarus Chakwera, who New Zealand and Bangladesh are the write directly to the editor by
garnered 35.4% of the vote, and his former other semi-finalists. sending an email to
Aryna Sabalenka Belarus 21 13 1967 2065 asktheeditor@livemint.com
ally, Saulos Chilima, who won 20.2% of the Tell me more: The final match is
Johanna Konta Great Britain 28 14 1848 2068 vote. They said the irregularities affected scheduled to be played on 9 February at Mint’s journalistic Code of
Petra Martic Croatia 28 15 1917 1960 1.4 million of the total 5.1 million votes cast. Potchefstroom in South Africa. Conduct that governs our
newsroom is available at
All data as of 4 February 2020, 4pm.
www.livemint.com
Source: tennisabstract.com Compiled by: POOJA DANTEWADIA/MINT
Data and text compiled by Howindialives howindialives.com is a search engine for public data

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 Telegram Channel: https://t.me/KittusWealthJourney

DEALS AND STARTUPS WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI 03

REVERSE PITCH Adani Transmission raises $310 mn

debt through US private placement
Reverse Pitch is like a normal investors pitch, but
with the roles reversed. That means the startup
doesn’t present its business to investors but investors
and companies pitch their business concept,
challenges and the like to startups.

“The food sector is Power transmission firm to use funds to scale up infra, bridge gap between supply and demand for electricity
primed for further
expansion” Swaraj Singh Dhanjal significant step to stimulate
swaraj.d@livemint.com growth. The latest offshore debt
MUMBAI fundraising by the Adani group
company follows in the footsteps

G
PIYUSH BHANDARI autam Adani-led of the more than $2.76 billion of
Managing partner at IMC Group and Jeff Bezos Adani Transmission dollar debt fundraising through
member of The Chennai Angels paid
$16,000 in
Ltd, the largest pri- bonds the parent group executed
parking vate sector power in 2019, making it the most active
tickets for transmission com- Indian corporate house in the dol-

I
feel that India’s food sector is primed for further DC mansion pany in India, has raised $310 mil- lar debt market.
expansion. Already, the country, which ranks sixth in bit.ly/31nTRTA lion in dollar-denominated debt Last July, Adani Ports and Spe-
terms of food and grocery market globally, is witness- through a private placement to cial Economic Zones Ltd had
ing huge expansion with online delivery players such as US-based investors, the transmis- raised $650 million to buy back
Swiggy and Zomato entering into partnerships. Quick sion company said in a stock bonds of a similar amount matur-
service restaurants (QSR) and casual dining restaurants exchange filing on Tuesday. ing in 2020, while in June it had
together comprise more than 74% of the market and are “Adani Transmission Ltd has raised $750 million through a sep-
growing exponentially. The QSR segment is one of the circled up its US private place- arate bond sale.
most exciting segments in the food and beverage indus- ment transaction of USD notes to Adani Green Energy Ltd had
try today. the eligible international inves- raised $500 million in May and
The QSR industry has the potential to grow and tors. This USD denominated notes followed it up with another bond
expand to other cities because of the scale of investment, are raised by six wholly owned issuance of $362.5 million in Octo-
which also makes their operations nimble and sustaina- subsidiaries of Adani Transmis- ber. Adani Transmission, too, had
ble. Consumer expectation has also changed over the sion Ltd amounting to $310 mil- raised $500 million in November.
years with the proportion of pickup and food delivery lion. The proposed US note place- Last year, the transmission and
through new-age apps dramatically increasing. Hence, ment, which will be fixed rate distribution business sold a
the need for large dine-in formats has come down. The instrument, will mitigate interest minority stake in its Mumbai elec-
restaurants today are smaller than before and this trend rate risk for these companies,” the The Gautam Adani-led firm will raise the USD denominated notes through six wholly owned subsidiaries. REUTERS tricity distribution company,
is evolving across the industry. This has even given birth filing said. Adani Electricity Mumbai Ltd
to ghost restaurants wherein there is no dine-in option. This is the first time that an network to meet the growing demand for power, he added. sustainable growth in the coun- (AEML), to Qatar Investment
Hyperlocal marketing also has a huge part to play in Indian company has circled up a demands of a T&D (transmission “The placement is a strong try.” Authority for $450 million. AEML
the QSR industry, which provides data on consumer transaction for its proposed US pri- and distribution) sector,” said Anil endorsement of global investors’ Adani Transmission has shown is the licencee for an integrated
preferences and habits. Based on hyperlocal trends, they vate placement in over a decade, Sardana, manag- a strong perform- power distribution, transmission
can focus on a popular menu and reduce wastage. They the statement added. With this ing director and FUNDING ROUTE ance over 2019, and generation business that cur-
can curate a menu based on consumer preferences, ena- recent round of placement, Adani chief executive with milestones rently serves more than three mil-
bling them to best utilise their inventory. The efficiency Transmission now has a 30-year, officer, Adani THE proposed WITH this round, THIS is the first time that included five lion consumers in Mumbai.
of restaurant operations has drastically improved purely 10-year and 17-year maturity debt Transmission. US note placement the firm now has a in a decade that an successful letters Adani Transmission has a
will mitigate interest 30-year, 10-year and Indian firm has circled
because of the availability of data and information. I am paper in the market, it added. The funds will rate risk for these 17-year maturity debt up a transaction for its of intent (LOIs) to portfolio of cumulative transmis-
very bullish on the QSR format and the potential it holds “We are delighted to raise these enable the com- companies paper in the market US private placement build, operate and sion network of more than
as a sector. The future looks bright for QSR because of funds from our US stakeholders. pany to support maintain trans- 14,800 circuit km, out of which
India’s rising youth population, better per capita income, This will help us mitigate interest its efforts toward mission in Guj- more than 11,470km is opera-
and more awareness because of internet availability in rate risk in our TBCB (tariff-based scaling infrastructure, improving confidence in Adani Transmission arat, Rajasthan and Maharashtra, tional. This includes around
tier 2 and 3 cities. I welcome startups with brand-led competitive bidding) projects. electrification and bridging the as a value creator and leader in the besides its recent partnership with 3,320km under various stages of
thinking and entrepreneurs who can revolutionize and Further, we aim to expand our gap between the supply and power sector contributing toward Qatar Investment Authority, in a construction.
create consumer brands in the QSR space in big markets.

Sequoia-backed kitchen appliance maker Stovekraft files for ₹500 crore IPO
M. Sriram & Ridhima Saxena a wide range of kitchen prod- raise up to ₹145 crore via a and second fund combined. but eventually shelved its Uganda, Qatar, Sri Lanka, Fiji, Arvind Sports Lifestyle Ltd, to
sriram.m@livemint.com ucts, including pressure fresh issue of shares, which Investment banks Edel- plans. Bahrain, Kuwait, Oman and lead the company.
MUMBAI cookers, non-stick cookware, will be used to repay debt and weiss and JM Financial will Stovekraft ranks among Tanzania. Stovekraft reported a reve-
gas and induction cooktops, for other general corporate run the IPO process. non-technology investments The company has also nue of ₹642.5 crore for FY19,

S
ilicon Valley-based
Sequoia Capital is look-
ing to sell a part of its
stake in Stovekraft Pvt. Ltd,
worth around ₹310 crore
Paytm founder Vijay Shekhar through the kitchen applian-
Sharma. RAMESH PATHANIA/MINT ces maker’s proposed initial
public offering (IPO).
Paytm’s POS Stovekraft makes and sells
mixer-grinders and chimneys
under the Pigeon and Gilma
brands. The Pigeon brand
contributed 81.24% to overall
sales for fiscal 2019.
On Tuesday, Stovekraft
filed its draft documents with
the market regulator for its
₹500 crore IPO. It plans to
purposes, said one person
aware of its share sale plans.
Stovenkraft’s promoters
Rajendra and Sunita Gandhi
plan to sell up to 640,906 and
250,000 equity shares,
respectively, while Sequoia
plans to sell as many as 6.27
million shares from its first
Sequoia had first picked up
a significant minority stake in
Stovekraft in 2010 for ₹50
crore. In 2013, it had invested
infused more capital into the
company. This is the second
time the firm has filed for an
IPO. It had filed its draft pro-
spectus in September 2018,
made by Sequoia in the early
part of the decade, Sequoia
typically backs only technol-
ogy startups in its other mar-
kets such as China and the US.
Stovekraft has a manufac-
turing plant in Bengaluru and
one in Baddi, Himachal Pra-
desh. It is present in Kenya,
entered the LED lighting
market with its Pigeon brand,
catering to both domestic and
commercial consumers.
Last October, Stovekraft
hired Rajiv Mehta, the former
managing director of athletic
brand Puma and CEO of Arv-
ind Fashion Brands Ltd and
up from ₹534.5 crore a year
ago, while profit stood at ₹0.9
crore, from a loss of ₹11.7 crore
in FY18. Stovekraft’s IPO
plans also indicate the trend
among companies to go pub-
lic, anticipating a revival in
the primary markets.
sriram.m@livemint.com

device seeks
to tap small
merchants
Madhurima Nandy
& Nandita Mathur
BENGALURU/NEW DELHI

O
ne97 Communica-
tions Ltd-owned
Paytm has launched a
point-of-sale (POS) device,
which will help merchants EXTRACT OF UNAUDITED FINANCIAL RESULTS (STANDALONE & CONSOLIDATED) FOR THE PERIOD ENDED 31-12-2019
( ` in Crores)
accept payments through
Paytm wallet, debit and credit STANDALONE CONSOLIDATED
cards, besides all Unified Pay- YEAR YEAR
Sl. QUARTER ENDED PERIOD ENDED QUARTER ENDED PERIOD ENDED
ments Interface (UPI)-backed PARTICULARS ENDED ENDED
payment methods. No.
31-12-2019 30-09-2019 31-12-2018 31-12-2019 31-12-2018 31-03-2019 31-12-2019 30-09-2019 31-12-2018 31-12-2019 31-12-2018 31-03-2019
Merchants will also be able to
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
generate good and services tax
(GST) compliant bills and man- 1. Total Income from Operations 7,650.76 7,598.18 5,508.71 22,044.55 19,113.10 24,961.20 7,712.75 7,653.11 5,533.98 22,182.36 19,162.88 25,050.50
age all transactions and settle- Net Profit for the period (before Tax and
ments through their ‘Paytm for 2. 2,343.28 1,839.78 1,829.90 6,285.06 6,466.20 8,100.50 2,386.47 1,866.70 1,842.84 6,365.75 6,449.34 8,090.44
Exceptional items)
Business’ app at one go, the Net Profit for the period before tax (after
firm said on Tuesday. 3. 2,343.28 1,839.78 1,829.90 6,285.06 6,466.20 8,100.50 2,386.47 1,866.70 1,842.84 6,365.75 6,449.34 8,090.44
Exceptional items)
The Android-based device Net Profit for the period after tax (after
will take care of all the needs of 4. 1,642.35 1,306.76 1,274.55 4,450.45 4,507.59 5,763.72 1,666.81 1,322.47 1,284.00 4,498.28 4,488.72 5,741.38
Exceptional items)
small businesses around digital Total Comprehensive Income for the period
payments, said founder and 5. [Comprising Profit for the period (after tax) 1,698.88 1,251.50 1,341.80 4,428.89 4,486.40 5,703.18 1,723.34 1,267.10 1,351.25 4,473.48 4,467.57 5,680.79
CEO Vijay Shekhar Sharma. and Other Comprehensive Income (after tax)]
“Over the past 18 months, we
have invested a lot of time in
6. Equity Share Capital (Face Value ` 10 per share) 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92 1,974.92
understanding the needs of Other Equity (as per audited balance sheet as
7. 32,328.02 32,571.42
small businesses around digital at 31st March)
payments. This device offers a 8. Earnings per Share (of ` 10 each) (for
comprehensive business tool continuing and discontinued operations) (in `)
right on the desk of millions of Basic 8.32 6.62 6.45 22.53 22.82 29.18 8.44 6.70 6.50 22.78 22.73 29.07
small businesses. We believe Diluted 8.32 6.62 6.45 22.53 22.82 29.18 8.44 6.70 6.50 22.78 22.73 29.07
that offerings like these will
help expand the market and
drive further acceptance of dig-
ital payments and, at the same
time, enable our merchant
partners to operate their busi-
nesses more efficiently,” said
Sharma.
Paytm said it has done a
series of pilots, including bus
ticketing, parking manage-
ment, logistics, home delivery
and for banking, financial servi-
ces and insurance services.
madhurima.n@livemint.com
 Telegram Channel: https://t.me/KittusWealthJourney

04 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

40,789.38 2.30 11,979.65 2.32 9,853.05 2.10 28,112.45 2.10 12,091.00 2.29 15,498.75 1.37 14,545.51 1.29
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

39,872.31 40,178.74 11,707.90 11,786.25 9,650.55 9,711.95 27,534.70 27,728.85 11,820.30 11,900.05 15,288.92 15,362.10 14,360.00 14,412.81
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

40,818.94 40,117.46 11,986.15 11,783.40 9,858.65 9,711.10 28,243.10 27,722.50 12,099.35 11,898.90 15,543.09 15,361.28 14,563.88 14,407.88

m SHORT TAKES
Policy space
Titan’s stock shines after Q3 show
as shareholders bank on stability
Central banks in the Asia-Pacific region still
have room to cut interest rates.
Real interest rate as of 3 Feb (in %)

-2.2 India
-1.1 Australia
-0.2 China
Thailand 0.4 Pallavi Pengonda 52-week highs on Tuesday. Note, that
sonable growth in the festive season
South Korea 0.6 pallavi.p@livemint.com despite the recent increase, the Titan
and the company did better and mar- Losing shimmer
Philippines 1.5 stock is still 8% lower than its 52-week
ket share gains were evident,” Titan Higher gold Gold grammage growth

T
prices have (year-on-year in %)
Malaysia 1.8 itan Co. Ltd’s December high seen on 25 October. said in its earnings presentation.
Indonesia 2.3 quarter stand-alone net Coming back to Titan’s December Overall, jewellery revenue taken the sheen Q1 FY19 -3
Investors profit fell short of some quarter performance, a part of its reported an increase of 10.6%. Note off Titan Co.’s
Real rate is central bank’s Sources: Bloomberg got richer by gold grammage
interest rate minus calculations based analysts’ estimates. Net earnings miss can be explained by the
that the December 2019 quarter had Q2 24
year-on-year consumer on government,
a whopping performance in
price inflation rate central bank data ₹3.57 trillion profit came in at ₹470 one-off provision impact of ₹25 crore,
a large institutional order for gold the December
in two days crore, against the ₹506 crore said another analyst, who declined to
coins worth of ₹200 crore. Q3 20
quarter.
SATISH KUMAR/MINT of market expected by a Bloomberg poll . Inves- be named. This year’s December quarter saw
rally Q4 15
tors though were quite gold grammage decline
To curb virus fallout, Asia bit.ly/3bay1Yo excited, taking the GLITTERING INVESTOR OPTIMISM by 5%. Note that gold Q1FY20 6
stock up 7.5% on the grammage had fallen
faces rate-cut pressure National Stock TITAN shares surge MUTED demand STOCK trades at 55 by 14% during the Sep- Q2 -14
Exchange on Tuesday, post Q3 results as conditions and
investors appreciate higher gold prices
times FY21 estimated
earnings, suggesting
tember quarter.
Central banks in Asia face increasing calls to a day when the Nifty stable financial make the road good portion of the Jewellery Ebit (earn- Q3 -5
cut interest rates as they jump into action 50 index rose by 2.3%. performance tough, going ahead optimism is priced in ings before interest and Source: Company
against a spiralling coronavirus crisis that’s What gives? tax) margins declined
SANTOSH SHARMA/MINT
hammering tourism, travel and confidence The market is by 30 basis points to
across the region. appreciating companies that can Revenue was broadly in line with 13%. This was largely due to an declining by 2.4%. According to the ing. Plus, it’s not as if Titan’s valua-
The People’s Bank of China trimmed some deliver stable performance in these Street estimates. The company saw increase in advertising and higher company, the watch segment’s per- tions are cheap. The stock currently
interest rates on Monday and injected massive tough times, according to analysts. 9.4% year-on-year growth in revenue management agents commission due formance was affected due to poor trades at 55 times estimated earnings
liquidity into the financial system to shore up So, some stocks, such as Titan, are to ₹6,206 crore. This was helped by to a change in the channel mix. A customer sentiment specifically in for FY21, based on Bloomberg data.
slumping markets. Indonesia’s central bank playing catch-up, considering a few strong growth in its mainstay jewel- basis point is one-hundredth of a per- December, which led to a sharp Sure, the company remains one of the
said it was taking “bold” steps to bolster the consumer-related stocks had already lery business, which contributed 87% centage point. decline in primary sales and on key beneficiaries of the shift to the
nation’s currency and bonds. Bank of Japan run up on Monday, they added. to total revenue last quarter. Jewel- Titan’s watch business, which is e-commerce channels. organized market. For now, stock val-
governor said the bank won’t hesitate to take Shares of Hindustan Unilever Ltd lery retail growth was 15%. the next big revenue contributor at Going ahead, muted consumer uations suggest the optimism has
action to cope with the virus’s economic and Nestlé India Ltd touched new “The industry itself witnessed rea- 10%, put up a poor show with revenue sentiment makes the road challeng- been captured adequately.
impact if it becomes necessary. Australia cen-
tral bank kept interest rates unchanged on
Tuesday, saying “it is too early to determine
how long-lasting the impact will be” on China’s
economy from the virus outbreak. BLOOMBERG

Gold mountain
Pidilite’s results prove why it pays GlaxoSmithKline Pharma’s Q3 hit by
Holdings in bullion-backed exchange-traded
funds are at a record.
Spot gold (in $/ounce)
(Left-hand scale)
Total known gold ETF
holdings (in tonnes)
to stick with leader in tough times weak metrics, recovery may take time
1800 2,573.88 2800
1,566.37 (3 Feb)
1700 2600 R. Sree Ram Clifford Alvares revenue marginally due to the Pharma made one-time adjust-
1600
2,304.53 Record high 2400 sreeram@livemint.com
Report card clifford.a@livemint.com growing push of its other brands. ments related to the underutiliza-
1500 2200
While Pidilite Industries’ revenue growth has been tepid, profit While that did not happen, its tion of manufacturing facilities and
margins improved, driving the earnings performance.

I G
1400 2000 nvestors don’t appear to be laxoSmithKline (GSK) Phar- strong brand portfolio did help the impairment of some other
1300 1800 worried about Pidilite Change in revenue Gross margin maceuticals Ltd’s weak improve the gross margins in the assets. Added to this was about ₹17
(Left-hand scale) Earnings before interest, tax,
1200 1600
Industries Ltd’s high valua- depreciation and amortization margin
third quarter (Q3) results quarter. Some of GSK Pharma’s crore as costs on litigation. All these
tions. In fact, the stock hit a (in %) have derailed the stock’s recent brands are fast-growing on a high extraordinary expenses summed up
1100 1,567.76 1400
new 52-week high on Monday 25 23 60 performance. Slower revenue base. Nevertheless, to ₹737 crore.
1000 1200
2 Jan 2012 4 Feb 2020 on NSE, after the company 20 50 growth, higher expenditure and this was not sharp Extraordinary These write-offs
Source: Bloomberg impressed the Street with 50.5 53.8 one-time write-offs dragged the enough to counter ris- took a toll on the com-
15
40 expenses worth
SATISH KUMAR/MINT strong earnings performance 30 profits down, much below the ing employee costs. ₹737 cr took a toll pany, and it reported a
10
last week. 24
20 Street’s expectations. All this took As a result, operat- as the firm posted loss of ₹644 crore in
5 20.8
Global investors never had Currently, Pidilite shares 4
10 the sheen off its stock, which ing metrics took a hit.
a loss of ₹644 cr. Q3. That has unnerved
trade at nearly 55 times FY21 0 0 slumped 12% on Tuesday even as Ebitda (earnings the Street.
this much gold in ETFs estimated earnings, based on
Q1 FY19 Q3 FY20
the broader market soared. before interest, taxes, This has unnerved Adjusting for these
Bloomberg data. Note that this
Source: Company, Motilal Oswal Financial Services
Third quarter revenue declined depreciation and the Street write-offs, the net
SANTOSH SHARMA/MINT
The global stash of gold in exchange-traded is marginally higher than con- 6% year-on-year, well below the amortization) growth profit would have been
funds (ETFs) has risen to a record after a long sumer products behemoth industries weighed on sales. tising and brand promotions, Street’s expectations. The com- was lower than ana- about ₹92.7 crore.
run of accumulation that’s been given added Hindustan Unilever Ltd’s val- On the other hand, the and is trying to expand its cus- pany’s multinational parent had lysts’ expectations by as much as However, this would still be lower
impetus in recent weeks by the fallout from the uations, which itself is pricey. industrial products segment, tomer base (rural areas). These voluntarily recalled ranitidine 30%. Ebitda margins remained than what the Street had factored in
widening coronavirus crisis. Coming to Pidilite’s Decem- the much smaller contributor measures will require market products globally, including Zine- weak at 16%, which indicates the by about 33%, implying that the
Worldwide holdings in bullion-backed ETFs ber quarter results, consoli- to revenue, performed better recovery to show results. tac in India. But analysts had noted company has not been able to man- company faced a tough quarter.
climbed to 2,573.9 tonnes on Monday, topping dated revenue grew 4% from a thanks to strong exports. Meanwhile, despite a nota- that the recall would not cause age its costs well either. “Adjusted net profit was up 9.3%
the previous peak set in 2012, according to an year earlier. However, softer Going ahead, commentary ble fall in raw material costs, much damage. In fact, some had One-off write-offs further YoY at ₹92.7 crore, our estimate:
initial Bloomberg tally. The latest additions fol- raw material costs meant earn- about the mainstay consumer the company has imple- even expected the company to grow marred the performance. GSK ₹140 on account of a lower tax rate,”
low four straight years of inflows, and come as ings before inter- and bazaar prod- mented only modest price noted analysts at Motilal Oswal
prices of the traditional haven trade near the est, tax, deprecia- Despite a notable ucts division, cuts, and that, too, on select Financial Services Ltd in a recent
highest level since 2013. Gold has risen as the tion and amorti- fall in raw material where Pidilite is products. This indicates its
Health check note to clients.
health emergency centred in China hurts zation (Ebitda) costs, the firm has the market leader, strong competitive position- GlaxoSmithKline Pharmaceuticals’ revenues have slipped below Street A positive in the quarter was that
appetite for risk at a time when US interest jumped 36%. remains cautious. ing in the market. expectations, dragging down the Ebitda margins. some of GSK Pharma’s key pro-
implemented
rates are expected to remain low for some time, Ebitda margin
only modest price The management Importantly, raw material Revenue (in ₹ crore) Earnings before interest, tax, depreciation moted brands grew 20%, noted ana-
(Left-hand scale) and amortization margin (in %)
with some investors seeing further easing from expanded more says one has to prices continued to remain 1000 25 lysts. Still, while the short-term
the Federal Reserve. BLOOMBERG than five per- cuts, and only on wait for two more soft. This should leave enough 825.4 impact has been huge, the com-
centage points to select products quarters to call room for promotional spends 800 778.6 20 pany’s long-term performance hin-
24%. out any definitive and price cuts. It should also 600 15 ges on how quickly it can scale up
Sure, revenue demand trends. help grow earnings in Q4 at a 16.6 16 some of the new drugs that it has
Car trouble growth trended lower. Reve- Recovery in real estate and decent pace despite muted 400 10 launched recently.
Wuhan’s Hubei province is China’s
fourth-largest car manufacturing hub. nue at the mainstay consumer construction sectors is impor- sales. “ We model an increase 200 5 Other factors that could impede
3.1 and bazaar products in the tant. in Ebitda margin by 330 basis growth would be a slowdown in the
China’s 2019 auto production 2.9 0 0
by province (in million) 2.7 domestic market grew just Pidilite’s focus is on “stimu- points in FY20E to 23%,” Q3 FY19 Q3 FY20 domestic pharma market and any of
2.2 3.9% last quarter. Tight liquid- lating” volume growth. It is ICICI Direct Research analysts Source: Motilal Oswal Financial Services
the drug maker’s brands coming
ity conditions in the user stepping up spends on adver- said in a note. under price control.
1.8 SANTOSH SHARMA/MINT
1.6
1.4
1 1
0.8

Jiangsu Tianjin
Zhejiang Chongqing
Beijing
Guangxi
Hubei Jilin
Shanghai Guangdong
Battery makers’ profit margins surge on robust auto replacement sales
Souce: National Bureau of Statistics, Bloomberg
Vatsala Kamat sus estimate. profit growth of about 40% y-o-y, mobile sales on account of the
SATISH KUMAR/MINT Margin power
vatsala.k@livemint.com Both firms gained from a bet- Operating margins of battery manufacturers Amara Raja and Exide which stemmed from lower tax BS-VI transition that is around
China car sales may see ter product mix. Double-digit Industries have expanded, translating into profit growth in Q3. and higher other income, com- the bend. Besides, the dim out-

B
attery makers have bucked
dip in first months of 2020 the auto and auto-compo-
nents slowdown in the
China’s car sales are likely to slump the most on December quarter (Q3 FY30).
record in the first two months of 2020 as the The margins of market leaders
coronavirus keeps buyers away from show- Exide Industries Ltd and Amara
rooms, intensifying headwinds for automakers Raja Batteries Ltd were healthy
in the world’s biggest market. despite a choked auto sector.
Sales are set to fall by 25-30% in January- Exide’s Ebitda (earnings
February, according to a preliminary forecast before interest, tax, depreciation
by Cui Dongshu, secretary general of China and amortization) margin rose
Passenger Car Association. The virus outbreak 80 basis points year-on-year
will likely drag China’s full-year auto sales by as (y-o-y) to 13.3%, beating forecasts
much as 5%, Cui said on Tuesday. China’s auto slightly. However, Amara Raja
sales were already heading for an unprece- stumped investors with its 132
dented third straight annual decline before the basis points margin growth to
virus forced authorities to lock down the epi- 16.2%, nearly 60 basis points
centre of Wuhan city and beyond. BLOOMBERG higher than Bloomberg’s consen-
sales growth in auto battery
replacements gave a leg-up to
margins, despite a small spike in
lead prices during the quarter.
After all, profitability is better in
replacements than in sales to
original equipment manufactur-
ers (OEMs). Further, both have
combined markets in the non-
regulated sector, which became
less competitive after the intro-
duction of the goods and services
tax. Both also did well in exports
during the quarter.
However, while profitability
powered ahead, the steep drop in
sales to auto OEMs because of
production cuts weighed on their
Amara Raja Year-on-year Exide Industries Year-on-year pared to its peer’s 25%. look on economic activity would
Q3 FY20 change Q3 FY20 change However, an air of caution pre- pile pressure on sales to infra-
(in  crore) (in %) (in  crore) (in %)
vails about the sales outlook for structure, industry and telecom
Revenue 1,747.5 3.1 2,411.5 -3.4 the quarters ahead. “Our analysis sectors.
of four-wheeler automotive-re- The only solace, however,
Net profit 164.2 217.6
25.4 40.4 placement battery volumes indi- comes from lead prices, which
Earnings before cates that growth is likely to slow have eased after a brief surge last
interest, tax,
132 basis 80 from 10% in FY20 to 6% in FY21. year. This augurs well for the
depreciation and
amortization
16.2 points 13.3 basis This is due to weak OEM volume profitability of battery firms,
margin (in %) points growth in the past few years and given that lead accounts for
Source: Companies
assuming a replacement cycle of nearly two-thirds of manufactur-
SANTOSH SHARMA/MINT
three years for passenger vehi- ing cost. Analysts and battery
revenue. Sales to telecom and mirrored the contrasts in reve- cles and two for medium, heavy makers concede that the coming
infrastructure firms were also nue and margin traction. Amara and light commercial vehicles quarters, which will determine
subdued, leading to Amara Raja’s shares zoomed 20% in the last six and tractors,” said a Nomura the demand outlook for automo-
relatively weak 3% y-o-y revenue months, while Exide’s were up Research report. biles, are crucial to peg valua-
growth and Exide’s 3.4% fall. only 9%. The Street did not seem Weak volume growth could be tions. Until then, the stocks may
The stocks of the two firms impressed by Exide’s higher net- exacerbated by uncertain auto- continue to be range bound.

Mark to Market writers do not have positions in the companies they have discussed here

Airtel posts
₹1,035 cr Dec
quarter loss on
high AGR bill
FROM PAGE 1
pany said.
Besides Airtel, Vodafone
Idea and Tata Teleservices
have also filed pleas to seek
more time to pay dues related
to the court’s order on how
revenue should be calculated,
based on which operators pay
levies.
The telcos want to negotiate
a sustainable payment sched-
ule with the telecom depart-
ment, which has issued
demand notices worth over ₹1
trillion for revenue share,
interest, and penalty.
To be sure, Airtel, last
month, raised ₹21,502 crore
through a mix of equity and
debt to pay the dues.
“Pursuant to the infusion of
fresh equity and long-term
financing via convertible
bonds subsequent to the
reporting period ended
December 31, 2019 and availa-
ble liquidity/facilities with the
group, the management has
concluded that the previously
reported material uncertainty
on the group’s ability to con-
tinue as a going concern no
longer exists,” Airtel said.
Airtel’s monthly average
revenue per user from mobile
services in India rose to ₹135 in
the December quarter from
₹128 in the September quarter.
On this metric, it beat Jio
which recorded an average
revenue per user of ₹128.4 in
the December quarter.
“While tariff revision under-
taken in December 2019 is a
welcome step towards repair-
ing the financial health of the
industry, we believe tariffs
must go up further for ena-
bling the industry to invest in
emerging technologies,”
Bharti Airtel chief executive
Gopal Vittal said in a state-
ment.
Telegram Channel: https://t.me/KittusWealthJourney
CORPORATE WEDNESDAY, 5 FEBRUARY 2020
NEW DELHI 05
AirAsia’s CEO steps aside as EXPERT
VIEW
Airbus bribery probe begins R ATA N TATA
Respond to this column at
feedback@livemint.com
Tony Fernandes will leave his post for two months while Malaysia probes graft claims
A NUTRITION-RICH
Charlotte Ryan, Yantoultra Ngui
INDIA CAN DO MORE,
& Asantha Sirimanne
LONDON/KUALA LUMPUR/COLOMBO
AND DO IT BETTER
A I
irbus SE and AirAsia NBFCs’ ndia entered the 21st century with a strong foundation and
wholesale
Bhd., the discount air- book under
immense promise. In the last two decades, significant strides
line built by Tony Fer- severe have been made. There is much to be extremely proud of in
nandes, were insepa- stress: the aspirations and achievements of our citizens from every
rable for years, with Report walk of life. As a people, we are today far more conscious and
the boisterous aviation executive bit.ly/31AahZn committed to nation building.
gorging on ever-larger aircraft The next decade is going to be decisive to irrevocably rid
orders to become the manufac- ourselves of deficiencies. The one critical imbalance to elimi-
turer’s biggest customer for single- nate is that of inequalities of opportunity. Among them, the
aisle jets. most corrosive is the wasting of millions of our young children
That happy marriage ended in and the inability of large swathes of would-be mothers to give
acrimony last week after Airbus birth to healthy babies—both due to malnutrition. We should
admitted to illegally trying to sway also be proud that we have lifted 270 million citizens out of
plane sales and agreed to a record poverty.
$4 billion bribery settlement. By During the next decade, the challenges will be the successful
Monday, Fernandes stepped away implementation of measures to irrevocably reduce the critical
from the Malaysian airline he imbalance in the inequalities of opportunities.
bought in 2001 and turned into one We need to improve the health of
of the best-known brands in Asian The wasting of mothers and children in the rural
aviation. AirAsia chief executive officer Tony Fernandes (right), who is already facing corruption charges in India, and millions of areas by improving nutrition. We
Fernandes was one of Airbus’s chairman Kamarudin Meranun, said they stood down to ensure a full and independent investigation.
most loyal customers, a fixture at air
REUTERS
young children, need to provide our young popula-
tion with greater access to good edu-
shows where he’d make a splash ment examines corruption claims, ship deal which was the subject of defence analyst at Agency Partners owing to cation and, finally, provide them with
with huge deals while bucking the according to a statement Monday. the Airbus accusations was “a in London. “At times they have malnutrition, is job opportunities.
stodgy formalities of traditional Chairman Kamarudin Meranun branding exercise” and not a ven- given the impression of ordering a key imbalance Malnutrition is often confused with
business. Among his most memo- also stepped down, in a sign of fur- ture to make money. aircraft at an exceptional rate.” hunger. Hunger is nature’s way of sig-
rable moments was the signing of ther repercussions from the brib- Malaysia’s anti-graft agency said After starting his career in Rich- nalling the lack of nutrition.
the European company’s biggest ery case. Fernandes, 55, who is Saturday that it was looking into ard Branson’s Virgin Group in the The importance of good nutrition goes back to the nutri-
order at the 2014 Farnborough already facing corruption charges corruption at AirAsia. Airbus, UK, Fernandes returned home to tional health of the mother during pregnancy and critical nutri-
expo, where he which admitted to Malaysia and teamed up with Mera- tional inputs to the infant.
exchanged man- THE CASE AGAINST AIRASIA’S TOP BRASS the SFO’s allega- nun to buy an ailing and indebted The lack of these important proteins and other foundation
hugs with legend- tions as part of its AirAsia for 1 ringgit. nutritional inputs have a significant impact on the physical and
ary, since departed LAST week, Airbus FOLLOWING this, AIRASIA chairman settlement, Affable and almost always casu- mental health of the infant, which often carries through the life
sales chief, John admitted to illegally
trying to sway plane
Tony Fernandes, one Kamarudin Meranun
of Airbus’s most loyal also stepped down,
declined to com- ally dressed, Fernandes was rarely of the individual. Lack of hygiene and appropriate sanitation
Leahy. sales and agreed to a customers, stepped but both denied ment. seen without a grin and a red base- can also result in a weak infant who could suffer through life.
Now a corrup- $4 bn settlement down as CEO malpractice charges Shares of AirAsia ball cap bearing the AirAsia logo. As a country, we are now more aware of these needs and the
tion probe that has tumbled as much as Like Branson before him, he was required cohesion. The Union government has adopted time-
ricocheted through 12% Tuesday, after never shy of the limelight. AirAsia bound targets.
Airbus for almost four years, claim- in India, and Meranun on Monday losing 10% of their value on Mon- would become Malaysia’s first low- Through our work with regulators, state administrations,
ing the scalps of many senior staff, denied allegations of wrongdoing, day. Fernandes and Meranun are cost carrier and its explosive partners and individual professionals, we are witnessing a pur-
is coming for its airline counter- saying they stood down to ensure a still the company’s biggest inves- growth across the continent coin- posefulness to attain the goal. We have to, because a nutrition-
parts. Fernandes will leave his role full and independent investigation. tors through Tune Group. “AirAsia cided with unprecedented demand rich India will give all our people the most basic opportunity—
as chief executive officer of AirAsia They added in a newspaper op-ed is clearly a major Airbus customer,” for air travel in developing nations. the abilities and faculties to do more, to do better.
for two months while the govern- Tuesday that a Formula 1 sponsor- said Sash Tusa, an aerospace and BLOOMBERG Ratan Tata is the chairman emeritus of Tata Sons.
 Telegram Channel: https://t.me/KittusWealthJourney

06 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI CORPORATE

Tweak in Companies Act may EXPERT

VIEW
affect Tata versus Mistry case RADHIKA RAO

Respond to this column at

feedback@livemint.com

While Tata can use provisions to force Mistry to exit, it will need to pay half the 18% stake value upfront
BUDGET LESS OF A
Swaraj Singh Dhanjal account the following factors: - (i)
WORRY; INFLATION,
swaraj.d@livemint.com
MUMBAI
the highest price paid by any per-
son or group of persons for acqui-
sition of shares during last twelve
LIQUIDITY MATTER

T
he corporate affairs months; (ii) the fair price of

ministry on Monday
notified an amend-
ment to the Compa-
nies (Compromises,
Arrangements and Amalgama-
tions) Rules, 2020, adding a pro-
vision for majority shareholders
to buy out minority stockholders.
With the changes taking effect,
while Tata Sons could potentially
use the provisions to force Cyrus
Mistry and Shapoorji Pallonji
Group, who hold an 18% stake, to
exit, it will, however, need to pay
at least half of the total stake
value upfront.
According to estimates, the
stake of Mistry family is currently
valued at more than ₹1.5 trillion,
which includes the value of
equity shares of Tata Sons as well
as the estimated valuation of the
Tata brand name.
The ongoing battle between
the two sides is currently in the
Supreme Court, which last
month stayed a National Com-
pany Law Appellate Tribunal
(NCLAT) order which called for
reinstatement of Cyrus Mistry as
the executive chairman of Tata
Sons and for his restoration as a
director in Tata Sons as well as a
few other group companies.
While the stay order was on
expected lines, the apex court
also barred Tata Sons from
potentially using Article 75 of its
m SHORT TAKES
10% TDS only on dividend paid by
MFs, not on redemption of units
New Delhi: The Central Board of Direct Taxes (CBDT) on Tues-
R
shares of the company to be Google evised estimates for FY20 budget math showed that the
Pay’s
determined by the registered val- ‘tremendou
additional fiscal headroom, owing to the escape clause
uer after taking into account val- s success’ in under the Fiscal Responsibility and Budget Management
uation parameters including India to be (FRBM) Act, helped the government offset the shortfall in reve-
return on net worth, book value replicated nues, rather than make room for heavy spending. This leaves the
globally:
of shares, earning per share, Pichai
delay in fiscal consolidation a less of a worry for the monetary pol-
price earning multiple vis-a-vis icy.
bit.ly/31pFiyK
the industry average, and such As the Reserve Bank of India (RBI) monetary policy committee
other parameters as are custom- meets this week, attention will be on the inflation trajectory and
ary for valuation of shares of such liquidity as a conduit to transmission.
companies. Markets are keen to gauge the central bank’s assessment of the
While the new amendment spurt in December 2019 inflation, which tested past the upper
allows for minority shareholders bound of the inflation target band of 6%. Low base effects will
to be bought out, a person keep January’s close to 7%, even as sequential trends (on lower
directly aware of the internal food and fuel) have moderated. This leaves 4QFY19 and 1QFY20
deliberations said the Shapoorji (i.e. 2HFY20) inflation above RBI’s projections and an upward
Pallonji group is expected to revision in 2HFY20 and 1HFY21 forecasts to ~6% and 5% is likely.
challenge any move to enforce Pricing curves reflect jitters on the policy direction. Swaps
the same by Tata Sons. “The way have squeezed out the likelihood of further easing, while scruti-
According to estimates, the stake of Mistry family is currently valued at more than ₹1.5 trillion, which includes it is prescribed is that they will nizing policy commentary for forward-looking signals. Is a shift
the value of equity shares of Tata Sons as well as the estimated valuation of the Tata brand name. PTI have to put up half of the amount to a neutral policy stance in the offing? We suspect not.
upfront, which in the case of Tata Price pressures are evident primarily in vegetables, but also the
articles of association (AoA) holds not less than three-fourths try said that for such an applica- Sons will be several billions of broader food basket, including pulses and other proteins. From
under which, by a special resolu- of the shares in the company, and tion of takeover, the applicant dollars,” the person said. a deflationary phase, pulses have drifted up (y-o-y), which along
tion it could force, any minority such application has been filed will have to submit the report of Additionally, the amendment with supply disruptions might be influenced by the cobweb phe-
shareholder such as Mistry to exit for acquiring any part of the a registered valuer disclosing the prescribes that the whole process nomenon, wherein cropping patterns change due to prolonged
the company by acquir- has to be carried out low/high return on crops. Global food prices are also up. Price
ing their shares. KEY PROVISION under the scheme of increases in telecom, medicines, steel and cement, etc., add to the
The amendment, arrangement mecha- mix.
issued by the ministry on THE ministry has THE ongoing battle THE SC last month SC also barred nism, which means it Nonetheless, this is still a predomi-
Monday, states that “A added a provision for between Tata Sons
majority shareholders and Cyrus Mistry is
stayed a NCLAT
order which called
Tata Sons from
using Article 75 of
will have to go through There’s concern nantly supply story. And the situation
member of the company to buy out minority currently in the for reinstatement of its articles of another whole round of that any sign of is improving. Vegetable prices are off
shall make an applica- stockholders Supreme Court Cyrus Mistry association NCLT, NCLAT and the boil (onions -30% m-o-m, selected
tion for arrangement, for Supreme Court, if Mistry withdrawing pulses down m-o-m) as supplies were
the purpose of takeover family opposes it, the liquidity could restored. A further correction here
offer in terms of sub-section (11) remaining shares of the com- details of the valuation of the person said, adding that this be construed as could take inflation towards 5% in a
of section 230, when such mem- pany.” shares proposed to be acquired could easily be a three to five- tightening couple of months. The Australian
ber along with any other member The notification by the minis- by the member after taking into year long process. weather bureau expects rainfall condi-
tions to be neutral, ahead of the south-
west monsoon.
Juxtaposing retail inflation to falling rural wage growth—real
and nominal—reinforce the absence of demand catalysts, as does
the significant negative output gap. Better returns on food could
PNB posts ₹492.28 crore loss in Dec quarter improve the unfavourable rural terms of trade (food to non-food),
but eat into urban spending, keeping the demand dynamics
unchanged.
While the central bank does not explicitly target core inflation,
Shreya Nandi and remaining amount of ure of profitability, declined it will be factored in as an indicator of weak demand indicator in
shreya.n@livemint.com ₹1,396.75 crore has been car- by 19 basis points sequentially their price models, weakening the justification for a shift to neu-
NEW DELHI ried forward to subsequent to 2.36%. Its capital adequacy tral bias.
quarters,” it added. ratio under Basel III norms Consequences of any such early change in stance could be

S
day clarified that a budget proposal for tax deducted at source tate-owned Punjab
(TDS) of 10% while making dividend payments above ₹5,000 a year National Bank (PNB) on
to shareholders or mutual unit holders will not apply to any capital Tuesday reported a net
gains on redemption of mutual fund units. loss of ₹492.28 crore in the
The CBDT statement said that it received queries whether the quarter ended December,
TDS requirement proposed in the Finance Bill 2020 would also against a profit of ₹246.51
apply to capital gains arising on redemption of mutual fund units. crore a year ago, having made
The bill had proposed to shift the tax liability on dividends from the higher provisioning for bad
firm to shareholders and introduced the TDS requirement while loans. The lender had posted a
accepting the long standing demand for giving relief to firms on the profit of ₹507.05 crore for the
dividend distribution tax liability. GIREESH CHANDRA PRASAD preceding three months, but
provisions for bad loans in
October-December jumped
Google parent Alphabet posts 73.2% year-on-year to
₹4,445.36 crore.
mixed Q4 results, profit soars Fresh slippages more than
PRADEEP GAUR/MINT
doubled to ₹6,783 crore in
October-December, com-
pared to the year-ago period.
However, on a sequential
basis, it declined 9% from
₹7,462 crore.
“During the quarter, the
bank had availed dispensation
for deferment of provision in
respect of frauds amounting to
₹238.84 crore…Accordingly,
an amount of ₹59.71 crore has
been charged to profit and loss
The public sector lender
had posted a profit of
₹507.05 crore in Q2. MINT
account during the quarter
and ₹179.13 crores has been
deferred to subsequent quar-
ters,” PNB informed the
exchanges on Tuesday.
“Further, out of the un-am-
ortized amount of ₹2,284.32
crore up to quarter ended Sep-
tember 2019 an amount of
₹887.57 crore has been
charged to profit and loss
account during the quarter
Despite higher provision- stood at 14.4%, from 10.52% a damaging. For a start, it will be interpreted as a precursor to a
ing, the lender’s asset quality year-ago. The lender’s domes- tighter rate environment, lifting money market/short-end rates
improved in October-Decem- tic deposits increased 9.4% for a start. This be a wash-out for the policy transmission agenda,
ber. Net non-performing year-on-year to ₹6.89 trillion including neutralizing Operation Twist efforts. Higher borrow-
assets (NPAs) declined to as of December 2019. ing costs spell trouble for firms and companies, which are still in
7.18% from 8.22% a year-ago, The bank’s exposure to sen- midst of deleveraging, adding to pipeline risk for banks’ and non-
while gross NPAs remained sitive sectors, such as non- banks’ balance sheets.
flat at 16.30%, from 16.33% a banking financial companies, Add to this, a premature shift will leave the debt securities
year-ago. PNB’s increased to unattractive for portfolio investors, just as market access is being
provisioning cov- The loss was on ₹43,026 crore in improved.
erage r a t i o the back of higher October-Decem- Keeping liquidity in surplus to facilitate policy transmission is
(PCR)—the provisioning for ber from ₹39,744 the other key policy prerogative. The banking system liquidity
amount set aside bad loans, which crore a year-ago. is at a strong surplus of ₹3 trillion as the central bank steers clear
to cover NPAs—
jumped 73.2%
Out of this, the of liquidity mopping operations, while regular FX intervention
increased to lender has an to mop up dollar flows adds to rupee liquidity. The call weighted
75.27% as of year-on-year to exposure of average rate is hovering below the policy repo rate. Add to this
December-end, ₹4,445.36 crore ₹17,3156 crore in strong offshore borrowings by companies (up 50% y-o-y in April-
from 68.85% a the quarter November 2019), in addition to heavy government expenditure.
year-ago. ended Decem- While such excess rupee liquidity could stoke asset price infla-
Net interest income, the dif- ber, up from 92.2% in the year- tion worries, RBI appears to be willing to tolerate this surfeit.
ference between interest ago period, to stressed hous- There is rightful concern that any sign of withdrawing liquidity
earned and expended, stood at ing finance companies (HFCs). could be construed as tightening (like the argument above for
₹4,355 crore in the three Shares of PNB closed at neutral stance).
months ended December, an ₹56.90 on the National Stock With inflation coming off the boil, we suspect that surplus
increase of 1.5% from the year- Exchange (NSE), down 0.96% liquidity will prevail for longer than past cycles. For now, as credit
ago period, while its other from the previous day’s close, growth remains lacklustre, much of this excess with banks is
income increased by almost while the benchmark Sensex making its way into government securities, even as the statutory
one-third to ₹2,405 crore. Net ended at 40,789.38 points, up liquidity ratio heads to an all-time low of 18%.
interest margin, a key meas- 2.3%. Radhika Rao is economist at DBS Bank.

San Francisco: Google’s revenue didn’t grow as much as

what Wall Street expected, sending parent company Alpha-
bet’s stock down more than 4%, even as profits beat expecta-
tions. Alphabet said Monday it earned $10.7 billion, or $15.35
per share, in the final three months of 2019. That’s up 19%
from $8.9 billion, or $12.77 per share, a year earlier and more
than the $12.49 a share analysts polled by FactSet were
I-bank, tea vendors among DHFL creditors Sensex floats higher
expecting.
Net revenue, after subtracting advertising costs, was $37.6
billion, up 18% from $31.8 billion a year earlier. But analysts
FROM PAGE 1
on oil, recoups losses nesses,” said Gangwal.
DHFL is the first non-bank
were looking for $38.4 billion. While the Sundar Pichai-led lishments in the informal sec- lender to be referred to NCLT
company is still the clear leader in the digital advertising mar- tor,” said Sutanu Sinha, a under new rules notified by FROM PAGE 1 expectations of a growth-and
ket, it is now seeing growing competition from the likes of senior resolution professional. the government on 15 Novem- investor-friendly budget and
Facebook and Amazon. REUTERS According to Sinha, once ber. RBI cited governance Fund. “After the sharp sell-off weakness in global markets.
operational creditors submit concerns and payment on budget, there is a realiza- Our expectation of a slow
their claim along with sup- defaults by DHFL as the rea- tion among investors that recovery in growth, supported
porting documents, the reso- sons for superseding the there was nothing negative in by ample liquidity and lower
Malvinder says he paid back alleged lution professional (RP) tallies board. the proposals.” cost of fund remains,” Nomura
them against the records of the According to Karan Mitroo, As the government’s budget said. The brokerage, however,
misappropriated funds in RFL case company. partner at law firm Luthra and proposals didn’t bring in any thinks the budget announce-
“If both match, then the Luthra, most operational cred- material policy changes that ments on personal income tax
New Delhi: Former Fortis Healthcare promoter Malvinder Singh, claim is immediately admitted. DHFL is the first non-bank lender to be referred to NCLT. itors would usually not recover significantly altered growth and dividend distribution tax
arrested in a case related to alleged misappropriation of funds at However, there are instances dues because the proposals by outlook, liquidity continued to could hit flows, persistency
MINT Religare Finvest Ltd, told a Delhi when an RP can admit a claim, Nirmal Gang- A BPO has sue their claims. the resolution applicants chase Indian equities. On Mon- and value of new business
court on Tuesday that he has paid despite its absence from com- wal, founder of claimed dues of “I believe that barely meet the requirements day, foreign institutional inves- margins for insurance firms.
back the money to the entities con- pany records, if he finds that debt restructur- ₹13.32 lakh, of the government of financial creditors. “In sev- tors bought Indian shares With Indian equities trading
cerned. the bills are genuine,” said ing advisory firm which ₹1.32 lakh should look to eral cases, the proposals don’t worth $258.53 million. They at almost 19 times forward
The submission was made Sinha. Brescon and address their even meet the outstanding are net buyers of shares worth price-to-earnings, a 40% pre-
has been
before Chief Metropolitan Magis- One of the claimants is Allied Partners problems and payable to secured financial $1.37 billion this year. Domestic mium to MSCI Asia Pacific
trate Gurmohina Kaur during Ruralshores Business Services Llp, said that not admitted. The rest ensure that their creditors. Hence unless the institutional investors, includ- excluding Japan index, there is
hearing of arguments on the bail Pvt Ltd, a Bengaluru-based only road-side is being verified interests are hon- proposal by a resolution appli- ing mutual funds and insur- near-term downside risk to the
plea moved by Singh in the case business process outsourcing establishments, oured. If that cant has enough to offer mon- ance companies, have bought a markets, particularly in the
lodged by the Economic Offences (BPO) company. It has claimed but even small does not happen, ies to both financial and opera- total of ₹3,572.82 crore in light of rising coronavirus con-
Wing (WOW) of the Delhi Police. dues of ₹13.32 lakh, of which companies with claims of a few suppliers who provide goods tional creditors, recovery by stocks in 2020. They bought cerns, according to Goldman
The Delhi court has put up the ₹1.32 lakh has been admitted lakhs of rupees find it hard to and services on credit will stop operational creditors would be ₹1,286.63 crore on Monday. Sachs.
matter for further hearing on 6 and the rest is being verified by cope with the professional doing so, thereby hurting difficult under the IBC proc- “We ascribe the fall of 3% in Bloomberg contributed to
February. PTI the administrator. engagement required to pur- smooth functioning of busi- ess,” said Mitroo. Nifty on 1 February to high this story
 Telegram Channel: https://t.me/KittusWealthJourney

WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI 07

REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE

WHY INDIA’S WOMEN

VCs GET A RAW DEAL
Prejudice against women investors remains prevalent in a male-dominated investing world. Is change in the air?

Though awareness has

increased about the lack
of women investors, many
male investors do not see
it as a major problem that
needs to be addressed.
GETTY IMAGES

Mihir Dalal & M. Sriram study, among the top 100 US venture capi- being driven partly by women customers. stage fund said there is a “very clear case, investor requesting anonymity. “It’s
mint
BENGALURU/MUMBAI tal firms, the number of women partners A few years ago a startup named Brag, SHORT business and otherwise” for recruiting intimidating when you’re a newcomer.”
was 8% in 2017. In India, only three of the founded by two women entrepreneurs, STORY more female investors. “Women investors In this male-dominated environment,

I
n July 2019, a woman investor at a top 20 venture capital firms, India Quo- was pitching to a group of angel investors. can very clearly evaluate different kinds of what makes networking tougher for
well-known venture capital firm tient, Lightspeed India and Kalaari Capital Brag sells bralettes, an innerwear product businesses, lend a different perspective women is that by inclination many male
joined one of her male colleagues at have one woman partner, according to that is a substitute for bras, to younger WHAT and many times while evaluating deals, we investors prefer engaging with other men.
the Delhi office of a millionaire to Mint research. The rest do not have a sin- women and teenagers. have wished we had a woman looking at “Though I’ve never faced issues in formal,
convince him to invest in their fund. gle senior woman investor or partner. The room was full of men who were The Indian venture capital world the deal with us. So we have hired more direct conversations with other investors
In his mid-50s, the prospective limited (Some companies’ venture capital arms struggling to understand the need for the is even more male-dominated women at earlier stages.” But having more or investment bankers, as a woman you do
partner (LP) had made his wealth in finan- have women partners and Omidyar Net- product, recalls Sarita Raichura, who was than the US. Women investors women at the leadership level is a “long tend to get left out of informal communi-
cial services. work India, the Indian unit of eBay then at the Indian Angel Network and struggle to secure equal term journey”, he added. ties and networking (where many deals
The meeting didn’t go well for her. founder Pierre Omidyar, is headed by a present at the meet. ”I could immediately treatment from limited partners, Women investors say that apart from are struck),” said Ramachandran of Flour-
While she and her colleague were pitch- woman). relate to the product because I’ve shopped peers and entrepreneurs. the weak institutional action by funds to ish Ventures.
ing as peers, the prospective investor only for them for others. I’ve been in other situ- seek more women candidates, the venture For instance, when investment consor-
spoke to the male partner, the woman THE DISTAFF SIDE ations like these where only women can capital industry also has an image problem tiums are being formed to do a deal, male
WHY
investor said, requesting anonymity. “I
was virtually ignored right there. Even if I I ndia’s venture capital industry com-
pares poorly with other emerging mar-
would say something, the response would kets as well, not just with the US. Overall,
understand the use case and explain it to
men,” said Raichura, who now works at
Blume Ventures, an early-stage fund. One of the reasons there are
which restricts the number of women can-
didates: it is considered a very “masculine”
space. “If you consider the qualities that an
investors almost always reach out to other
males, whom they know well and have
worked with in the past. “If I get to hear of
be directed to my male partner. Despite women comprise 15% of senior invest- Apart from such obvious instances, hav- fewer women VCs is that most investor is supposed to have they are: a deal being done I will pick up the phone
being on equal footing, I felt like a ment professionals in private equity and ing more women investors is essential to funds do not consciously seek aggressive, ruthless, huge appetite for and express my interest to participate in
bystander watching them chat,” she said. venture capital space in China, according cultivate a healthy work culture at funds, to hire more women. One of risk, self-promotion. That is the percep- the round. But you need to take the initia-
Another woman venture capitalist (VC) to a report by the International Finance startups and the startup ecosystem at the biggest issues that women tion. Some women are put off by this and tive as opposed to being asked by male
said that in board meetings, she is often Corporation (IFC), which invests in funds. large. “Working styles are different across face is in networking. don’t think the venture world is their cup investors,” she said.
“mansplained” by fellow investor board The number in India was just 7%, it said. gender so it’s good to have diversity in of tea because of this image,” said a woman It’s easier for guys to talk to other guys,
members. “If I’m trying to say something, The lack of gender diversity looks thinking—it leads to more balanced deci- investor, declining to be named. agrees Kumar of Lightspeed. “Sometimes
a male board member will finish my sen- starker in light of the fact that the venture sion-making,” said Ruchira Shukla, AND Compared with the internet space, you have to butt into conversations to
tences for me, or I will be ignored and a capital business has expanded considera- regional lead ( South Asia) for IFC’s ven- impact investing—which refers to invest- create room for yourself and over time
guy will later say the same thing in a differ- bly in terms of employees, the number of ture capital practice. Apart from the bigger problem ments made to create social change—has I’ve gotten comfortable doing that. Over-
ent tone and then be heard. I’ve started funds and the capital deployed since 2014, of sexism, hiring more women far more women, partly because of its tra- time you build the muscle. If I have to
calling out these instances,” she said. when India experienced its first major CENTRE OF POWER, WEALTH investors makes business sense ditional links with the microfinance sector network, the initiative is generally mine.
as growth in many categories
The experiences of these two women startup investment boom.
VCs were echoed by eight other women To be sure, there is a wider phenome-
investors that Mint spoke to for this story. non here: according to an October 2019
O ne of the reasons there are fewer
women VCs is that most funds do not
consciously seek to hire more women, say
is being driven partly by
women customers.
that is women-centric.

NETWORKING TROUBLES
It is unlikely to come from the other end,”
she said.
Other, more direct cases of gender
Thanks to a skewed gen-
der ratio, prejudice
against women inves-
report by Credit Suisse
Research Institute,
women held 8.5% of
women investors. Funds usually hire
investment professionals from manage-
ment consultancies, tech firms, large overall startup ecosystem functions.
T he skewed gender
ratio makes life dif-
ficult for the few women
problems faced by
women include meet-
ings turning into dates,
tors is still widely preva- senior management startups or former entrepreneurs. They “There are not enough women entrepre- in the venture capital an issue faced particu-
lent, as women investors roles in India. A more either use recruitment consultants or tap neurs, there are not enough women in world. Lightspeed’s larly by some younger
struggle to secure equal tech focused study—the their social networks. technology, and there are not enough Kumar has found that women investors. “I’ve
treatment from LPs, Zinnov-Intel India Gen- Among the most gender balanced women VCs,” she said. some male founders been in (supposedly)
peers and entrepre- der Diversity Bench- investment teams at venture capital firms To be sure, even in the internet space, tend to feel nervous professional meetings
neurs. mark—found that is Lightspeed, which has seven men and there are many more women now, com- around women. “Some- which have suddenly
Clearly, the Indian women comprised 11% four women, all of whom were hired in the pared with a decade earlier. As venture times, founders avoid turned into dates. It
venture capital world is of senior roles, 20% of past four years. Earlier, Lightspeed, which capital funds have expanded in size, they making eye contact. I doesn’t happen very
even more male-domi- Working styles are mid-level positions and is headquartered in the US, had an all- have hired specialists in areas like human generally laugh and say, Sometimes you have to often, but it has hap-
nated than the US, 38% of junior employees male team. But four years ago it began to resources, marketing and technology. ‘Listen, I feel very pened on at least five
which was shaken up by different, so it’s good to in the 60 firms that it diversify its team consciously. Now, when Some of these roles are held by women. strange when I ask you a butt into conversations occasions, which is bad
the #MeToo movement have diversity—it leads surveyed. Most venture Lightspeed is hiring, the fund mandates Some funds have women as CFOs, too. But question and you look to create room for enough. I’ve also been
in 2017. This claimed capital funds in India its recruiting consultants to bring an equal the centre of power—and wealth—is the somewhere else and asked out on dates at
the jobs of some of the to more balanced easily lag even these low number of male and female profiles, said investment function, which is still domi- answer’. This helps yourself. I’ve gotten events. These kinds of
most powerful entre- numbers. Harsha Kumar, partner at Lightspeed. nated by men. break the ice,” she said. incidents make you
preneurs and VCs after decision-making. Apart from the bigger “If you see 70 male profiles and 10 And though awareness has increased One of the biggest comfortable doing that. wary of networking,”
accusations of sexual RUCHIRA SHUKLA problem of sexism, hir- female profiles, you will obviously end up about the lack of women investors, many issues that women face HARSHA KUMAR said a woman investor
misconduct emerged at SOUTH ASIA LEAD, IFC VENTURE CAPITAL ing more women inves- hiring a man. But if you see equal number male investors do not see it as a major is in networking. At net- PARTNER, LIGHTSPEED VENTURES declining to be named.
their companies. Apart tors makes business of profiles, you will end up hiring a more problem that needs to be addressed. working events, the lack VCs in India raise cap-
from the issue of sexual harassment at sense, as an increasing number of internet equal number of men and women. So “Most male partners at funds occasion- of women investors is borne out starkly. ital primarily from pension funds, family
workplaces, the #MeToo movement users are women. According to a report by because we make an effort to specifically ally talk about wanting to hire more Networking, both in its organized form offices and other institutional investors in
raised awareness about the lack of gender Kantar IMRB, a research and data consult- get women profiles, we see a lot of excel- women, but you don’t see them doing and in more informal settings, is an essen- the US, Europe, China and India. In the
diversity, in general. ancy firm, women comprise 42% of the lent women candidates across junior and much about it,” said a senior woman tial aspect of an investor’s life. Connec- US, some LPs have begun insisting on
Though venture capital firms in India 566 million internet users in India as of senior levels,” she said. investor requesting anonymity. “There is tions are made, relationships are built, funds having women investors. In India,
have made some effort over the past few December 2018. Women users are as Anuradha Ramachandran, investment absolutely no urgency.” deals are struck while networking. though, LPs led by development finance
years to hire more women, most are still active on the internet as men, it said. director at Flourish Ventures—spun off Male investors that Mint spoke to vali- “When I enter networking events, I see institutions are only beginning to prod
dominated by men, especially at the sen- Growth in categories like content, e-com- from Omidyar Network—said the lack of dated this point of view. a sea of shirts and blazers; no saris, no sal- funds to address gender diversity.
ior level. According to a TechCrunch merce and healthcare, in particular, is women investors is a reflection of how the An experienced male VC at an early- wars, no pantsuits,” said a senior woman mihir.d@livemint.com
 Telegram Channel: https://t.me/KittusWealthJourney

08 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI AUTO EXPO 2020

Coronavirus no setback for

Chinese automakers in India
Carmakers are expected to hit the ground running at the expo as they aggressively explore opportunities here
Malyaban Ghosh m MINT GRAPHITI
The organizers of the Frankfurt Motor Show decided to move the
malyaban.g@livemint.com show from the country’s financial capital due to a sharp drop in
NEW DELHI
In the slow lane visitors and participants. BLOOMBERG
The Indian auto sector has been witnessing a sharp slowdown in the last one year as a result of the prevailing economic slowdown and

T
transition to new safety and emission norms. The slowdown started in the aftermath of the bankruptcy of IL&FS which led to a liquidity
he outbreak of coronavirus may have
cast a shadow over businesses in
China, but companies in the world’s
crunch in financial institutions.
OVERALL AUTO INDUSTRY PASSENGER CARS
Auto shows lose sheen
biggest auto market are expected to
leverage the biennial show this week
to aggressively explore opportunities in India,
30
Domestic wholesales (in million units)
Year-on-year growth (in %)
(right-hand scale)
20

15
4.0

3.5
Domestic wholesales (in million units)
Year-on-year growth (in %)
(right-hand scale)
15
amid waning consumer
especially in the development of electric vehi- 25

interest, slump in sector

10
cles. 10 3.0
7.22 17.11 2.6
While some Chinese delegates and senior 20 2.11 5
5 2.5
executives have pulled out following a travel 19.75 3.9
clampdown, as first reported by Mint on 31 Jan- 15 0 2.0 0
uary, several others will be present from the Malyaban Ghosh some momentum. I think hon-
group of Chinese companies who will take part -5 1.5 malyaban.g@livemint.com estly it’s the right moment (for
10 -5
in the Delhi auto show for the first time. NEW DELHI the show to take place) and it’s
-10 1.0
“The organizers have also asked us to take good that Siam didn’t decide to

precautionary measures. Hence, our executives
who were supposed to come from China will
not be able to make it. We also don’t want to
harm the show anyway,” said an executive at
one of the largest automakers in China on con-
dition of anonymity.
Nevertheless, Chinese automakers, who have
lagged far behind rivals from the US, Japan and
South Korea in the development of internal
combustion engine cars, are expected to hit the
ground running at the Delhi show as they
search for lucrative markets outside of China.
Some of the biggest vehicle manufacturers
from China—SAIC Motor Corp., Great Wall and
FAW—will unveil cars packed with technolo-
gies including AI and IOT. Given China’s
strength in manufacturing, it is likely that com-
petitors would find their prices hard to match,
industry officials said.
According to an executive working for one of
the Chinese companies in India, most of the
companies from China are flush with funds and
looking to invest in a market which has the
potential to grow since sales growth in China
has stagnated. Hence, India is a good opportu-
nity for them.
“Most of these companies are not only manu-
facturers of vehicles but have also invested in
lithium battery manufacturing and other tech-
nological innovations. Also, the emergence of
electric vehicles has given them the opportu-
nity to take the Indian market by surprise since
such vehicles require more electronics than tra-
ditional parts. When it comes to innovation,
most of the Indian car makers are quite behind
the Chinese,” said the person on condition of
anonymity.
Over the last three decades, the Indian auto-
mobile industry has been dominated by a Japa-
nese and South Korean duopoly, unbroken by
even the best from Germany’s Wolfsburg and
America’s Detroit. By the end of fiscal year 2019,
Japan’s Suzuki Motor Corp. and South Korea’s
Hyundai Motor Co. together commanded 67%
of the market.
In 2019, China’s biggest manufacturer SAIC
Motor Corp. was the first to start operations in
India with its British brand Morris Garages, bet-
ter known as MG. The Shanghai-based com-
pany launched a mid-size sport-utility vehicle,
Hector, in June and soon overtook most com-
petitors with retail sales of more than 3,000
units per month.
The company took over the Gujarat-based
manufacturing plant of US-based General
5 -10
-15 0.5
-15.73 -13.5
0 -20 0 -15
FY15 FY20 FY15 FY20
(Apr-Dec) (Apr-Dec)
Source: Siam
PARAS JAIN/MINT
price the products cheaper that gives these
companies the upper hand.
“Today most technology regarding emission,
safety and other aspects of a vehicle are regula-
tion-driven. So that is not a threat. The feature-
driven tech is more of a gimmick and that can’t
be a potent threat as well. These companies can
price their electric vehicles quite aggressively
since they have the cost advantage in China
especially in batteries. In the process some low-
quality parts are also coming in the market,”
said the executive, requesting not to be identi-
fied.
As opposed to their Japanese, South Korean
and German counterparts, the Chinese auto-
makers have never successfully ventured out-
side their home country and the success of their
Indian operations will likely decide the fate of
their future expansion strategies in other geo-
graphies.
In an interview, Rajiv Chaba, president and
managing director, MG Motor India, said the
A file photo of an auto show in China. Chinese automakers have never successfully ventured out of China success of the India operations will decide the
and the success of their India operations may decide fate of expansion strategies in other geographies. company’s expansion plans in other markets in
the future. Also, India in the future is likely to
Motors Co., which has a modest annual capacity to start its India operations. become part of the company’s export plans, he
of 80,000 units. Buoyed by the success of Hec- BYD Co. Ltd, one of the biggest Chinese elec- said.
tor, SAIC is scouting for manufacturing capaci- tric vehicle manufacturers, will showcase its According to Kavan Mukhtyar, partner and
ties to expand its production. range of electric buses. leader, automotive, PwC India, growth in the
Another behemoth, Great Wall Motor Co.— In addition, Geely Auto was in talks with Saj- Chinese market has saturated and last year, it
China’s biggest manufacturer of sport-utility jan Jindal-led JSW Energy to form a joint ven- was in the negative. These manufacturers have
vehicles—is ture for manufac- been looking at the Indian market for quite
scheduled to turing electric some time but market dynamics posed several
make a debut in Over the last three decades, the vehicles. constraints. Given the long-term growth poten-
India with its Indian automobile industry has been Most of these tial of the Indian economy and success of Chi-
Haval brand of vehicle manufac- nese companies in the non-automotive space,
utility vehicles. dominated by a Japanese and South turers also have an these automakers are taking the plunge in the
The Hebei-based Korean duopoly upper hand when Indian market.
company recently it comes to bring- “Initially they would invest, build brands and
acquired a plant of ing electric vehi- not look at returns. Though selling cars are dif-
General Motors in Maharashtra. Both MG and cles and pricing them more aggressively com- ferent from mobile phones and getting the right
Great Wall are also eyeing exports from their pared to the incumbents, by leveraging the dealers and after-sales service points are crucial
Indian base. excess capacity and cost competitiveness in for building a sustainable brand. The aggressive
State-run vehicle manufacturers, Changan China. pricing strategy may be a short-term one but
Automobile Co. Ltd and FAW Group Corp., are According to a senior executive in an Indian with a stable localisation strategy and right
also scouting for local partners to set up their automobile manufacturing company, the threat teams in place, these players can compete
India operations. FAW has already collaborated from Chinese companies is not the technology aggressively in the Indian market,” added
with Bird Group, a diversified business entity, they are bringing in. Rather, it’s their ability to Mukhtyar.
U
ntil about five years ago, call it off. If we don’t do it, then
Delhi’s auto show who will?,” said Martin
would attract the big- Schwenk, managing director
gest names in the global auto- and chief executive, Mercedes-
mobile industry as companies Benz India.
sought to gauge the pulse of The drop in interest at the
potential buyers in one of the Delhi event is in line with global
world’s potential growth mar- trends, as auto shows across
kets for automobiles. continents have shrunk in
This year’s show, however, is terms of the number of partici-
likely to be a toned-down affair, pants as well as footfalls, espe-
along the lines of similar events cially in the last two years.
across auto hubs such as Frank- Recently, the German Associa-
furt, Detroit, Tokyo and Paris, tion of the Automotive Indus-
due to a global slowdown. try (VDA), organizers of the
India’s automobile market Frankfurt Motor Show,
has been in the midst of an decided to move the show from
acute slowdown due to a slump the country’s financial capital,
in consumption. At the same due to a sharp drop in visitors
time, automakers have and participants. The lobby
invested signifi- group has instead
cantly in upgrad- India’s narrowed down
ing their products automobile on cities like Ber-
to Bharat market has been lin and Munich as
Stage-VI emis- in the midst of an the potential
sion norms and
acute slowdown venue for the 2021
the near-term show.
outlook for a due to a slump in According to
revival in sales consumption Automotive News,
also looks grim. the step to move
This has likely the Frankfurt
prompted some of the biggest show is emblematic of a
names in the two-wheeler broader trend of falling con-
industry—Hero MotoCorp Ltd, sumer interest in car shows.
TVS Motor Co. and Honda Visitor numbers had fallen by
Motorcycle and Scooter India 30% in the last edition.
Pvt. Ltd—to stay away. Others Rising concerns about cli-
such as Honda Cars India Ltd mate change, and the effort to
and Toyota Kirloskar Motors reduce carbon footprint, have
India Pvt. Ltd have also decided led to cars not being considered
to give it a miss. as an object of desire. More-
In the luxury segment, Ger- over, with the product pipeline
man behemoths Audi India and of a company readily available
BMW India Pvt. Ltd also chose on the internet, consumers are
to remain absent. no longer so enthused about
Senior executives of partici- products showcased at auto
pating original equipment shows.
manufacturers (OEMs), how- Colin Couchman, head,
ever, said the Delhi show could automotive sales, forecasting,
help partly revive customer IHS Markit, said motor shows
sentiment, which ebbed signif- have lost their pull across the
icantly over the last one and a world and this trend likely
half years. “When people see reflects a blend of societal,
new cars, then they would also demographic and technologi-
want to own one. It will create cal factors.

A LOOK AT WHAT LIES AHEAD FOR THE AUTOMOTIVE SECTOR IN THE COUNTRY
even after the slowdown. The strong pace of economic growth, how-
ever, cannot be expected to sustain unhindered. The consumer mar-
EXPERT ket, especially in a large and fast-growing developing country, will
periodically fluctuate between hyper adoption and low demand.
VIEW Sweeping policy changes disrupt the normal economic rhythm.
Consumer sentiments and sensibilities may evolve beyond what the
RAJEEV CHABA market offers. As a result, the market slows down until it reaches a
point of inflection. This is exactly when the maximum innovation
Respond to this column at takes place. Disruption becomes a byword as technologies evolve at
feedback@livemint.com a rapid pace. Newer models of business operations and service deliv-
ery supplant the outmoded ones. I believe that the Indian economy
navigation through a dashboard console—all of these features,
which once seemed so futuristic, are a part and parcel of the new
breed of vehicles. But innovation isn’t limited to technology; it also
denotes a transformation in the way people, policymakers and
brands think about services and products. This not-so-silent evolu-
tion is most accurately reflected in the momentum that India’s nas-
cent EV revolution is gathering at present. More encouraging,
however, is the strong commitment that players in the Indian auto-
motive industry have demonstrated to
Auto Expo is the sustain and build on the EV momen-
perfect platform tum. For instance, MG Motor India has
excited about the diversity of innovation that promises to be on
offer at this biennial event. Auto Expo 2020 will see more than 60
new products at the cutting-edge of automotive innovation. Play-
ers across sectors such as clean energy, battery disposal and in-car
technology will also be participating at the event. From advanced
EVs and battery technologies to next-generation autonomous
vehicles and vehicle components, it will be the place where the
future of the Indian automotive industry will be defined.
This year’s edition will also be the first auto expo that MG will be
participating in. I am excited to give a glimpse of our range of best-
in-class global products to consumers and other industry stake-

A
s a business leader, I have learnt the value of equanimity. I
know that certain developments, which feel something
unique to that moment, are mostly just patterns repeating
themselves. Take, for instance, the recent economic slowdown in
India and, in particular, the automotive sector, that has people wor-
ried about the future and what it holds. But I am not unduly wor-
ried about what the future will bring. As a matter of fact, I am look-
ing forward to it with eagerness and excitement.
The rise, the fall and the resurgence: The inevitable cycles
of any consumer market
India has been growing at a robust pace for quite some time now
and remains among the world’s fastest-growing large economies,
currently stands at the cusp of one such inflection point.
E-mobility and connected mobility: Innovations in the
Indian automotive sector
The biggest example of this innovation reflects in the automo-
tive space. Take the recent focus on connected mobility, for
instance. The modern Indian consumer does not view mobility as
the process of getting from one place to another. For them, it is a
service that must be consumed, experienced, engaged with, and
talked about. This is why many OEMs are now focusing on deliver-
ing unique connected experiences to their customers by integrat-
ing their products with advanced technologies and machine capa-
bilities. AI-powered voice assistants, in-car infotainment, smart
been collaborating with leading players holders. As a future-ready brand, we have pioneered many indus-
to showcase in the clean energy space to develop a try-first features and technologies in India through our products,
the ongoing pan-India ecosystem for its customers’ the Hector and the ZS EV.
evolution of EV charging needs. Moreover, in line As leading automotive companies and players in allied indus-
the auto sector with our vision to enable a cleaner and tries continue to work towards making cars smarter and more intu-
greener future, we are also exploring itive, newer technologies, such as artificial intelligence, analytics,
second-life applications for used ZS EV Internet of Things and robotics, will become an essential part of the
batteries, as well as for safe battery disposal. Through such steps, vehicle development process. The auto expo is the perfect platform
we aim to underline our readiness for the imminent EV revolution. to showcase this ongoing evolution of the automotive sector. So,
here’s to the future that promises so much, as we reiterate our com-
Auto Expo and its role in bolstering automotive innovation mitment to realising its full potential.
All of this brings me to why I am looking forward to attending the Rajeev Chaba is the president and managing director of MG Motor
latest edition of the Auto Expo: Innovation. More importantly, I am India.

W HAT THEY SAID

When people will see new cars from us, then
they would also want to own one. It will create
some momentum. I think honestly it’s the right
moment (for the show to take place) and it’s
good that Siam didn’t decide to call it off. If we
don’t do it then who will?
MARTIN SCHWENK
MANAGING DIRECTOR AND CHIEF EXECUTIVE, MERCEDES-BENZ INDIA
Initially they (Chinese automakers) would
invest, build brands and not look at returns.
Though selling cars is different from mobile
phones and getting the right dealers and after-
sales service points are crucial for building a
sustainable brand.
KAVAN MUKHTYAR
PARTNER AND LEADER, AUTOMOTIVE, PWC INDIA
This is indeed a proud moment for us as we are
on the verge of entering the Indian market. We
are excited at the limitless possibilities that lie
ahead as India is an important market for us. At
GWM, we aim to set new benchmarks in the
Indian automobile industry.
WEI JIANJUN
CHAIRMAN, GREAT WALL MOTORS
With the first wave of internet-enabled cars
entering the Indian market, including the likes
of MG Hector, Kia Seltos and Hyundai Venue,
the battle is truly on among automotive
companies for establishing their leadership in
connected cars.
PRABHU RAM
HEAD, INDUSTRY INTELLIGENCE GROUP, CYBERMEDIA RESEARCH
 Telegram Channel: https://t.me/KittusWealthJourney

AUTO EXPO 2020 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI 09

Startups look to outpace OEMs EXPERT

VIEW

in India’s electric vehicle space PAWA N G O E N K A

Respond to this column at

feedback@livemint.com

AUTO SECTOR WILL

Startups are betting on their advantages of nimbleness and adaptability to edge past conventional manufacturers
EMERGE STRONGER
Amit Pandey
amit.p1@livemint.com
MUMBAI
FROM THE CHURN
C
hange may be the only constant, but the pace with which it

T
wo years ago, startup firm Ather
Energy Pvt. Ltd took a leap in the dark,
launching two electric scooter models
in India—340 and 450—a segment to
which most established automakers
gave a wide berth because the path to profits was
unclear.
Despite the Modi administration’s grand
vision to boost electric vehicle sales, lack of
charging infrastructure and uncertainty over
demand for higher-priced green vehicles have
daunted most conventional manufacturers.
But a clutch of startup firms have revved up
into the segment as they see a huge pay-off, if
they get the technology and product right.
Unlike for other vehicles, they are betting on
their advantages of nimbleness and adaptability,
just like US-based Tesla, to edge past conven-
tional players.
“Manufacturing is a hard problem to solve. But
it is not unsolvable. If a business model runs on
innovation and is IP-driven, then less manufac-
turing excellence will not hold you back,” said
Tarun Mehta, co-founder, Ather Energy.
Mehta said although Ather’s current produc-
tion capacity is 30,000 units per year, it is able to
utilize only a fraction of that due to supply chain
issues. However, the startup has launched a new
product 450X, with which it plans to ramp up
volumes quickly. It is also setting up a manufac-
turing plant at Hosur with an estimated annual
capacity of nearly 100,000 units.
“Once our annual volumes reach in the
50,000–100,000 unit range, we would not
require an infusion of additional funds as we
would become operationally sustainable. We
expect this to happen by 2021-end or 2022,”
Mehta said in an interview.
Meanwhile, another startup firm Tork Motors,
said it will ramp up capacity to about 20,000
vehicles per year from around 1,000 currently,
even as it gears up to launch its first product–an
electric motorcycle named T6X—in the June
quarter this year.
“We expect that once we sell about
20,000–30,000 units per year, we would break
even and start earning some margins on our
products,” said Kapil Shelke, founder at Tork
Motors.
Ather Energy and Tork Motors are among a
handful of startups that have strong financial
backing from high profile investors. Ather, for
example, has secured funding from the founders
of Flipkart, Sachin Bansal and Binny Bansal,
Innoven Capital and Tiger Global besides India’s
largest two-wheeler maker Hero MotoCorp Ltd.
Tork Motors meanwhile has raised funds from
Bharat Forge Ltd, Ola founder Bhavish Aggarwal
and Ratan Tata.
There are about a dozen startups in electric
mobility, not all of whom have equally strong
financial backing. Established players such as
Bajaj Auto Ltd and TVS Motor Co. Ltd are only
just nudging into the segment. While no more
than 4-5 start-up firms are likely to sustain in the
long run, their nimbleness in technology and
ability to tool products quickly would likely mean
that they maintain a lead in adoption of electric
takes place is not. The automotive industry is seeing a spec-
trum of disruptions, as we move towards a cleaner, safer and
convenient transport ecosystem. There are primarily three factors
causing this disruption: The shift to stringent emissions norms, the
transition to electrification, and potentially changing consumer
preferences with shared mobility and a connected ecosystem.
The inevitability of change, and the associated risks and opportu-
nities, have implications for original equipment manufacturers
(OEMs) in terms of strategic planning and consolidating their efforts.
It is imperative to analyse and understand the possible inflexion
points of regulatory peaks, mass change in consumer preferences
or lower costs of technology development, and how different sce-
narios could impact businesses.
India should pride itself for meeting the BS-VI challenge in record
time of just three years, undoubtedly among the fastest transitions
globally. The transition also provides an opportunity for increased
value-add in the Indian manufacturing ecosystem. With India meet-
ing global benchmarks on technology and emission, it will also help
the Indian auto industry compete better globally and access new
markets. Most importantly, the collective effort of the auto industry
to meet the BS-VI deadlines should provide the much-needed fillip
to the image of the auto industry.
However, this transition has a cost—BS-VI vehicles will be more
expensive. It will be vital for policymakers to cushion the impact on
the new vehicle buyer. At the same time, it is encouraging to see cus-
tomers want BS-VI vehicles, indicating an ‘evolving’ base.
Driven by the need for clean air, rapid evolution in battery tech-
nology and falling costs, there has been a push towards electrifica-
tion. The EV industry offers new opportunities as a sunrise sector,
Opportunities around the electric mobility ecosystem are classified into three broad categories: product manufacturing, EV charging infrastructure with the potential to drive economic growth and employment. With
and services. Startups in electric mobility cater to all the three opportunity areas as new business models are starting to emerge. a focused policy on manufacturing, as well as, the potential availabil-
ity of a skilled workforce, India can be
mobility, despite the entry of conventional play- offers charging infrastructure through its own supply chain and network to expand the market. The digital competitive in new product lines,
ers. grid and consumer services that include over- “However, it is to be noted that until EVs generation is including high-efficiency motors, per-
According to the Society of Manufacturers of the-air software upgrades along with new owner- become a reasonably sustainable business case,
Electric Vehicles (SMEV), the domestic EV indus- ship models such as subscription and leasing. incumbents will remain cautious as expansion in revolutionizing manent magnets, cell and battery com-
ponents, and power electronics.
try’s size stood at 129,600 units in FY19, includ- Pune-based Tork Motors plans to offer new a low-demand scenario will not only put pressure the way we While we balance environmental
ing 126,000 electric two-wheelers and 3,600 ownership models including leasing options and on their margins but also that of their dealers. think of considerations, market dynamics and
electric four-wheelers. This is an increase from is already setting up fast-charging infrastructure Secondly, the priority is BS-VI transition and automobiles regulations, the challenge lies in inno-
54,800 electric two-wheelers and 1,200 electric in Pune as it gears up to launch T6X soon. market recovery,” he added. vating and creating commercially viable
four-wheelers sold in FY18. In contrast, while Bajaj Auto offers to install EV Goldie Srivastava, co-founder and chief execu- business cases for EV adoption at the
Meanwhile, the electric three-wheeler seg- charging sockets for the buyers of its first electric tive at SmartE, a five-year-old startup that is bottom of the pyramid. India’s EV revolution can take off with elec-
ment, which is largely unorganized and domi- scooter—Chetak, rival TVS Motor plans to create already one of India’s largest electric mobility tric three-wheelers, a product whose unit economics make com-
nated by imports from China, is estimated at over a charging network for its iQube electric scooter service providers said the incumbents would mercial sense even today, when compared to its ICE alternatives, for
600,000 units in 2018-19. in Bengaluru. Both the companies are, however, eventually shape up the domestic EV market as first/last mile applications. With Fame-II already making clear the
With an outlay of ₹10,000 crore between yet to formally launch any new ownership plans they have capacity, manpower and supply chain intent of electrifying public transport, we also need to handhold
FY20-FY22, the for their electric in place. “Product innovation is led by startups, mobility businesses towards inducting electric cars into their fleet.
government’s scooters. Mean- who will also lead services furthering adding to This will also provide clarity to OEMs, resulting in greater invest-
Faster Adoption The domestic EV industry’s size stood while, Tata Motors the EV adoption. But manufacturing is a capital- ment in R&D as well as scale, thus, further pushing cost trajectories
and Manufactur- at 129,600 units in FY19, including Ltd on 28 January intensive industry, where OEMs clearly have an downwards. Even if we look at a conservative 15% of all passenger
ing of Hybrid and announced that it upper hand,” he said. vehicles, two and three-wheelers turning electric by 2030, with the
Electric Vehicles 126,000 electric two-wheelers and would offer sub- Stakeholders believe that the existing players auto industry growing at a modest 7% CAGR over the next few years,
or FAME 2 scheme 3,600 electric four-wheelers scription and leas- would acquire several startups as the business we are still talking of 6 million units by 2030.
supports electric ing options to the case for EVs becomes sustainable. Besides Hero, The narrative around electrification and low-carbon mobility has
two- and three- customers of its examples where OEMs have already made also been premised with a changing commuter preference, that of
wheelers as well as e-buses and four-wheelers Nexon electric compact sport-utility vehicle. investments in startup firms include Ather, TVS shared and connected mobility. This new digital generation is revo-
with only commercial registration for incentives. Shailesh Chandra, president, electric mobility Motors’ investment in Ultraviolette Automotive lutionizing the way we traditionally think of automobiles—for most
Further, the government levies 5% GST on EVs business unit, Tata Motors said leasing and sub- Pvt. Ltd, Bajaj Auto in Yulu, and Bharat Forge in Indians, ownership of a car is the second-biggest investment after
and also offers an exemption on interest paid on scription plans are the new-age ownership mod- Tork Motors. a house, but now with shared mobility, there is deliberation on own-
loans to assist EV adoption in India. els to bring customers on board before they can Vinodkumar Ramachandran, partner and ership-versus-shared paradigms. It should be noted that a shared
Opportunities around the electric mobility convincingly adopt the new technology. “Ather head, automotive and industrial manufacturing, transport economy is not new; rural and semi-urban areas have pio-
ecosystem are classified into three broad catego- took nearly two years to announce scaling up of KPMG in India said globally about 80% of the ear- neered shared or fractional ownership long before the digital mobil-
ries: product manufacturing, EV charging infra- its operations beyond two cities and solve its pro- marked capital investments by large automakers ity players arrived. Newer forms of acquiring a car, like subscription
structure and services. Startups in electric mobil- duction constraints. For Bajaj Auto or TVS are being put into future business opportunities and leasing, are changing the way customers interact with the auto
ity cater to all the three opportunity areas as new Motor, scaling up production and product availa- such as electric mobility, new technologies and industry. The churn that the auto industry is going through,
business models are starting to emerge. bility would not take more than a few days,” said business models. “Only 20% of their capital presents an opportunity for the industry to regroup, rethink and
For example, Ather Energy not only develops a consultant, requesting anonymity, as he investments are going into manufacturing,” he come out stronger.
and manufactures its own products, but it also explained how existing players can leverage their added. Pawan Goenka is the managing director of Mahindra & Mahindra

All eyes on Jio’s connected car tech as it gears to offer a glimpse of the future of mobility
Navadha Pandey role of connectivity, network including connected cars,” said nology to support connectivity, vehicle. Vodafone Idea’s eco- ber last year . Hector is pow-
navadha.p@livemint.com and technology for connected Prabhu Ram, head, industry security, safety and infotain- system of IoT will boost Kia ered by Airtel’s connectivity
NEW DELHI vehicles of the future,” said a intelligence group, CyberMe- ment among others,” Ram said. through the integration of suite. Carmakers are betting on
person aware of the develop- dia Research. Simply put, a connected car e-SIMs with voice, 3G/4G data, connected technology in vehi-

R
eliance Jio Infocomm
Ltd will on Wednesday
unveil its connected car
technologies at the auto expo,
becoming the country’s first
telecom company to enter an
arena so far reserved only for
global automakers.
The move will allow India’s
largest telecom operator by
users to project itself as an
Internet of Things (IoT) solu-
tions provider rather than
being just the telecom com-
pany it was when it started
operations in September 2016.
“Jio will exhibit car connect
vehicle tracking system for
transport service providers,
logistics companies. With this
expo, Jio will demonstrate the
ment, requesting anonymity.
Jio has been working on
connected car technologies for
more than a year at its campus
in Navi Mumbai.
“Jio’s portfolio of use cases
for connected vehicles
includes hardware, cloud plat-
form, data management,” the
person said.
A spokesperson for Jio did
not respond to emailed queries
until press time.
The entry of the Reliance
Industries Ltd subsidiary into
connected car technologies
comes at a time of a prolonged
slowdown in the Indian auto-
mobile market. In the telecom
market, Jio’s rivals Bharti Airtel
and Vodafone Idea have posted
“With the first wave of inter-
net-enabled cars entering the
Indian market, including the
likes of MG Hector, Kia Seltos,
and Hyundai Venue, the battle
is truly on among automotive
companies for establishing
their leadership in connected
cars,” Ram said.
Vodafone Idea and Bharti
Airtel are already working on
Jio’s portfolio of use cases for connected vehicles includes connected car technologies
hardware, cloud platform, data management. ISTOCK and have pinned their hopes on
the segment at a time of falling
record losses in the September engine” for the company. revenues from their core
quarter. “Connected mobility is the mobile service operations.
At the annual general meet- future. In a 5G-first era, it “For telcos such as Jio, this
ing of Reliance Industries in makes sense for Jio to position provides them with a first-
July last year, chairman itself as an IoT company and mover advantage to support
Mukesh Ambani had said that seek to establish its leadership automotive players with
IoT would be a key “growth in all niche market segments, embedded SIM or eSIM tech-
has seamless connectivity to SMS, and application program- cles at higher price points to
the internet, which enables the ming interface. lure tech-savvy customers.
operation of a host of features The Kia Seltos SUV has 37 Hyundai Motor Co. was the
that can make smart features first to launch an integrated
driving an easier Jio has been such as artificial connected vehicle solution,
and safer experi- working on intelligence voice Blue Link, with its first com-
ence. A user can connected car command, stolen pact sport utility vehicle
also get notifica- technologies for vehicle tracking Venue. Maruti Suzuki has
tions on fuel
more than a year and immobiliza- launched Suzuki Connect.
usage, over- tion, auto collision Connected car technology
speeding and at its campus in notification, will become integral to vehicles
prevent accidents Navi Mumbai emergency assist- with the advent of electric and
through smart ance, remote hybrid vehicles. In India, only a
emergency engine start and handful of passenger vehicles
brakes. stop, remotely operated air boast of this technology. How-
Vodafone Idea and South purifier, and in-car air quality ever, collaborations between
Korea’s Kia Motors in October monitor. telecom service providers and
last year signed a partnership Bharti Airtel showcased a carmakers are set to pick up
for the India debut of the UVO connected version of MG steam.
connected car system with the Motor’s Hector SUV at the Malyaban Ghosh contributed
new Kia Seltos sport utility India Mobile Congress in Octo- to this story.

W HAT THEY SAID

India is one of the most exciting growth
markets for Volkswagen. Together with the
VW brand, we are seeking a combined market
share of 5% by 2025, depending on market and
development. For SKODA, India would thus
become one of the five biggest markets.
BERNHARD MAIER
CEO, SKODA AUTO
We have believed in bringing technologies that
benefit the customers. Auto Expo 2020 is an
opportunity for us to bring forth a vibrant
display of vehicles. It reflects our efforts for the
customers as well as environment and
showcase our commitment to Indian market.
KENICHI AYUKAWA
MANAGING DIRECTOR, MARUTI SUZUKI
All Chinese companies scheduled to
participate at Auto Expo 2020 – Components
Show have informed the organizers that
travellers from China scheduled to attend the
components show are unable to travel to India
due to the prevailing conditions in China.
DEEPAK JAIN
PRESIDENT, ACMA
Auto Expo 2020 will mark another landmark in
the Indian auto sector and Hyundai as a
customer-centric organization will showcase
the tech prowess under the theme ‘Freedom in
Future Mobility’ and unveil the upcoming
trendsetter SUVs for the Indian market.
S.S. KIM
MD AND CEO, HYUNDAI MOTOR INDIA
 Telegram Channel: https://t.me/KittusWealthJourney

EXCLUSIVE FROM

10 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI

‘We should not underestimate the shock in

China, global growth in first quarter can be hit’
PRADEEP GAUR/MINT MINT
Latha Venkatesh look at a CRR cut. rium response to what is happening in the
CNBC-TV18 Is there anything that we may have left economy which is that savings have come
out that the MPC has to consider? down and are less than government’s pub-

G
rowth moderation is a more Chakraborty: The big question is that lic sector borrowing requirements. So you
durable concern, whereas it is a situation where growth is still slow. I need a sustainable another source of
inflation spike is a more tran- get Sajjid Chinoy’s point that there could be demand.
sitory concern, say Pronab an incremental improvement, but we are What the budget is trying to do is, if you
Sen, former chief statistician bouncing back from such a low level that it look at bond money around the world, now
of India, Samiran Chakraborty, chief India is always difficult to feel comfortable with all of the money that goes to emerging mar-
economist, Citi, Soumya Kanti Ghosh, small bounces because structurally it ket is passive sticky money that goes
group chief economic adviser, SBI, Sajjid doesn’t seem like nothing much has through indices. I think the government
Chinoy, chief India economist, JPMorgan, changed on the growth front. So the statement is important because what it is
and Sonal Varma, managing director and growth worry remains. saying is, there will be new securities issued
chief India economist, Nomura. Edited But at the same time, the inflation situa- which will have no restrictions for non-res-
excerpts of a conversation: tion, I would not say it is alarming, but at idents to hold which is a prerequisite to
How does the growth inflation mix least needs a careful watch. So in that con- being in global bond indices.
look for the Monetary Policy Commit- text, for the MPC to have much space for Now, the details are still to be worked
tee (MPC)? rate cuts in my view is limited. The only out, I am glad the government has been
Varma: Relative to December, the thing that the MPC can try doing is to com- cautious about this, not revealing too
growth outlook hasn’t changed materially. press the term premium that is there. much, but the fact is, in the next few
But as far as inflation is concerned, clearly The fiscal has taken one good step months if India does become part of an
the uptick we have seen in food inflation towards that by not expanding the fiscal index, even if the initial weight is small
implies that the Reserve Bank of India (RBI) deficit too much. Now it is part of RBI’s job because only a few securities are being lib-
will have to significantly revise up its near to ensure that this is supported as much as eralised, over time every new issuance if it
term inflation trajectory. The question possible through some kind of unconven- is liberalized, then your flow gradually
therefore is how durable the spike outside tional monetary policy support to ensure becomes a stock.
vegetables is and to what extent should we that more than 10 trillion of duration sup- So the point number two is that you will
be worried about higher food inflation prospects in India. So while domestic ply that is going to come next year that does see then sticky money coming in and think
resulting in inflation expectations moving impulses are getting stronger, you could not distort this yield curve again. of that as an incremental source of savings.
higher. have external headwinds. So in a limited sense, I think the growth So global saving is complementing India’s
Our sense is that there is clearly some The last point on inflation, the fact that support from monetary policies side can saving and that should bring the term pre-
upward pressure in the food basket and crude is at $55 per barrel is disinflationary, only come through a reduction in the term mium down. But let me make a final point
food inflation will be higher this year. How- the fact that global growth will slow is disin- premium. I don’t see too much of a policy though that complicates exchange rate
ever, overall, in terms of the underlying flationary, this comes down to what Verma support coming from actual reduction in management - you have more dollars com-
demand side pressures, it still remains said earlier. If you look at food, take vegeta- the rates. ing in, the RBI has to intervene more
extremely muted. bles out of the picture, the remaining Sen gave the CRR argument. Do you aggressively and that complicates mone-
The global side with these new concerns which is 40% of the basket is growing at think that is the way to go? tary management.
about coronavirus is going to be a near term 5-6%, which we haven’t seen in many years. Ghosh: I think the point is valid, but I am The last thing is, I am a little bit wary that
growth hit and commodity prices have Is that durable or is that transitory will not sure whether the CRR cut at this point just bringing term premium down will get
come up as well which should moderate determine the inflation trajectory this year. of time is going to help given the abundant better transmission into the banking sys-
some of the imported inflationary pres- What can monetary policy do to help liquidity in the system. I think the problem tem. 10 year bond yields have fallen almost
sures. Finally, the budget being largely growth? is same with we having an OMO and CRR a 100 basis points over the last 10 months,
neutral for growth also means there isn’t a Sen: The problem is that at the moment has been used earlier also, but we haven’t seen deposit rates
big growth or inflation push that is going to the essential constrains on the Indian econ- that is more of a monetary At best, what fall, so until other constraints
come from the budget. omy aren’t being addressed as far as I can management. So at this point monetary policy in the system like small saving
So, while near term inflation does look make out. So at best what monetary policy of time using CRR as a tool for can do now is rates for example are brought
quite high, the risk of this spilling over into can do now is to prevent the system from liquidity management even prevent system down, I am not sure you get
inflation expectations is quite low. On aver- slipping further downwards. It is much though that always has an very high efficacy from bring-
age, inflation actually is still going to be 4%
from slipping
more a question of liquidity in the system, advantage of pushing down ing bond yields down in terms
or below 4% for FY21. which the RBI should be looking at. How the cost of the bank funds further. It is much of translation to lower deposit
The underlying inflation, core inflation, one plays that out is the question. immediately, but I don’t think more a question rates.
still remains around 4% and therefore the If you look at the budget which was laid, that could be an material of liquidity in the The government has
12 month ahead inflation still is medium (Clock-wise from top) Pronab Sen, former chief statistician of India; Sajjid Chinoy, what it essentially suggests is that the option. system, says Sen assumed ₹2.5 trillion is
term anchored around 4% despite the near- chief India economist, JPMorgan; Samiran Chakraborty, chief India economist, Citi; nature of the problem continues to remain, The one thing which the going to come or ₹2.4 tril-
term spike. So, the bottomline really is the Soumya Kanti Ghosh, group chief economic adviser, SBI; Sonal Varma, MD and chief which is a lot of entities outside of the cen- central bank actually can do lion is going to come in
growth moderation is a more durable con- India economist, Nomura. tral government are going to be stressed in and I think this is regarding the Samiran small savings instruments. How much
cern, whereas inflation spike, in our view is terms of their liquid positions and that’s a Chakraborty’s point of around 10-10.5 tril- will be transmitted, even if we bring
a more transitory concern. income tax is at 5%. So possibly the govern- tion mix, I am little bit more constructive problem monetary policy has to con- lion of total supply of papers which are the bond yields down?
Do you think we can assume that the ment is relying on some telecom receipts or on growth in India compared to Varma. If sciously take on board because the fiscal coming into the market, if we actually look Chakraborty: I think the number is
fisc will be restrained and it will not may be some other source of non-tax you look at the sequential momentum of policy hasn’t done it for them. into the distribution of papers of RBI, 0 to even more than the ₹2.4 trillion because
have an inflationary impact in the income in the next 2-3 months to deliver growth, in the middle of last year it was So the questions then become more 5, 5 to 10 years, and more than 14 years of ₹2.4 trillion is just the financing for the cen-
coming months? that. tracking 3.5% annualised, in the fourth complex in terms of what kind of liquidity that, most of the players were participating tral government fiscal deficit. If you take
Ghosh: One of the cornerstones of the For the next year, I think the deficit at quarter it is tracking above 5%. So don’t be are we talking about. It is not a question of in more than 14 players and not the banks, about ₹1.3 trillion additional which is going
budget is that it has tried to do its best 3.5% looks reasonable, but you have to do a fooled by the year-on-year numbers, look just this budget, but of subsequent budgets they are the insurance entity’s mutual to go to public sector companies as financ-
under the prevailing circumstances. Given bottom-up approach to understand the tax at the sequential pick-up, the high fre- from hereon that are we talking about tran- funds. ing, so the total financing requirement out
the excess capacity in the economy, I think assumptions. quency data is much more constructive, sitory liquidity or we are talking about fur- So one way to look into is that you try to of small savings is ₹3.7 trillion.
the argument of crowding out may not For example, some of the tax assump- that is number one. ther permanent liquidity injection. That to elongate that duration further so that the If you look at the first nine months of fis-
hold true immediately because there is a lot tions look a little bit aggressive, some of Number two, to Soumya’s point if you my mind is really the critical question that market appetite for these funds from these cal year 20, we have collected only about
of slack and there may not be demand for them does not, so in the end it needs to be look at the fiscal, I think there was a very the RBI faces. insurance companies goes up. That will ₹1.8 trillion. So there is big chunk of it to be
competing funds. Having said that I think on net-to-net basis. The other important fine balance between trying to be counter- Are you suggesting that the system also solve the problem because there is collected in the last quarter itself and then
the fiscal situation contin- thing is that the financing cyclical without being counterproductive needs enduring liquidity? another problem over here is that when for next year there is again a big assumption
ues to look worrisome INTERVIEW part, which I can talk about and if the government can execute assets Sen: This is the problem; what has hap- you are getting a deficit of 3.8% you have that the number will be almost equal to
because if you look into the later, because the small sav- sales, and that is an if, if they can do that, pened is, if you look at the last couple of taken a fiscal deviation, you have to also FY20.
fiscal deficit excluding the asset sales and ing part now has ₹2.5 trillion, so that is a big then in fact the underlying fiscal impulse is open market operations (OMOs) that the think of the clause whether you need to How much do you think the MPC has
the disinvestment receipts, that has elephant in the room. meaningfully positive and that will also RBI has done, the fact of matter is that monetise that or not. So one way to get space in 2020 itself?
declined from 5.8% to 6.2% this year. That Would you say that if anything the contribute to growth. banks haven’t participated in the OMO around is that elongate your duration. Verma: Cut by 25 basis points.
is what we can call the structural deficit. inflation problem has been smothered The big elephant in the room is what is buys at all; it has been mostly the non-bank- Do you think that MPC can do any- Chinoy: Cut between 25 basis points
That is point number one. because fisc is restrained and the happening globally. We should not under- ing entities. So what has ended happening thing about this term premium issue and 50 basis points over the course of the
Point number two is that this year’s defi- world is giving us lower crude prices, estimate the shock in China. We have seen is the liquidity has essentially spilled over itself? year.
cit assumption is at 3.8%. That was antici- so we can concentrate on growth? 12 provinces in China which account for into the stock market rather than increas- Chinoy: Let me make three quick points Ghosh: Cut by 0 to 25 basis points.
pated, but the point is that in that also you Chinoy: I would say we haven’t reached 80% of IP shut till 10 February. So global ing the ability of the banks to lend. So, fur- because I think this is a complicated topic. Chakraborty: Very little.
were factoring in an income tax growth rate that point as yet, but there are hopeful sig- growth in the first quarter could be mean- ther OMOs, if they follow the same path, One is, the term premium has been going Sen: 50 basis points.
of 18% though the current growth rate of nals. Just to step back on the growth infla- ingfully lower and that could hurt growth are not going to help. So you may want to up for the last 3-4 years. So it is an equilib- feedback@livemint.com

‘Business to Lagos has not been impacted and there’s no reason to be circumspect’
Prashant Nair & they are experiencing and that inconvenient in the sense that I would not like to get into Not for Nigeria and not for the ground. CNN had probably
Ekta Batra is I think what has triggered off suddenly if you have to go the specific numbers, but it is the international business. I picked it up, I don’t know, I
this spate of news, particularly from point ‘A’ to point ‘B’ and in that magnitude, 25% or so. really don’t see any reason to have not read that article, but
CNBC-TV18 the protests in the aftermath of in middle there is a road where Are you seeing business be circumspect about the they have probably picked it
the enforcement. it is not allowed, it becomes a impacted in terms of future of Nigeria in our portfo- up because there has been a lot
he business to Lagos has Has it impacted any of your problem. For sometime the exports to Lagos specifi- lio. of protests on the streets of

T not been impacted exports as of now and is it

because of the restric- just a temporary ban that
tions on two-wheelers and we are talking about and is
police were looking the other
way.
They would let people cross
cally, to Nigeria specifi- Do you have a guidance
cally?
No, we are not.
that you can provide us?
I told you this is not a signifi-
Lagos that is the thing.
So this information was
known to the business and at
three-wheelers and we do not it applicable to all the roads over these roads, but because Do you anticipate any sort cant event, so I don’t need to this stage unless it goes into a
see any reason to be circum- in Lagos as compared to of their own pollution they of impact to respond. conflagration at this stage we
spect, says Rakesh Sharma, what you just said which have started to enforce it more business say ‘Nigeria is a Isn’t it too early don’t feel that it is big enough
executive director, Bajaj Auto. was just limited to may be a strongly. However, you will probably for large country. for you to assess to shake our business.
Edited excerpts of an inter- couple of roads a few weeks still see a lot of two wheelers the next couple Motorcycles in the impact? A Do you expect it to proba-
view: or months ago? and three wheelers plying in of weeks, Lagos city is CNN article bly spill over into other cit-
Is this confirmed, the ban No, it is not a couple of Lagos city. maybe in says the ban on ies in Nigeria?
on two wheelers and three roads. If my memory serves me What percentage of your months, once
only 6-7% of commercial I am really not an expert in
wheelers in correctly, there sales in Nigeria come from there is this rig- our business. motorcycles Nigerian politics, so I really
Lagos? INTERVIEW are 400 roads and Lagos city, which is the orous enforce- Similarly, three- and tricycles in can’t say but it is difficult to
This is actually bylanes. There is a commercial hub? Can you ment that you wheelers is about the city went imagine that this kind of thing
old news. There has been a ban very detailed mapping of this Rakesh Sharma, executive director, Bajaj Auto. tells us this for both two are talking 10% of our biz.’ into effect on 1 suddenly becoming an epi-
on the movement of two whole thing. There are some wheelers and three wheel- about coming February. It demic across Nigeria. Having
wheelers and three wheelers 400 roads and bylanes within about 10% of our business. It is city. Is that a fair assess- ers? into play for a has just been a said that we will wait and
on certain roads in Lagos city the Lagos city which had been a very large country and so it is ment? I already did. I said these are long period of time? few days, 3-4 days. So isn’t watch.
for quite some time. This is identified quite a few years really not a very significant No, that is not what the law under 10% in three wheelers As things stand now, we are it too early to assess the Would you call this may be
actually a fact that there has ago, maybe a couple of years event as of now. is. The law is exactly what I told and probably 5-6% for us in not anticipating any major impact? a temporary setback?
been a law that says that two ago. So they are just enforcing Are you saying that it is not you now. I am not very sure motorcycles. So, it is impor- impact. In international busi- CNN has got to know about At this stage, I don’t even
wheelers and three wheelers those things that these vehi- certain roads and you are about this 400 because this tant but not a very significant ness these kind of things are it now. This is a law that has think it is a setback. Whatever
cannot ply within Lagos city cles are not permitted. saying it is about 400 roads identification has been done piece. happening all the time. been enacted several years it is, it is temporary irritation
on these roads. When it comes to the and bylanes in Lagos city? some time ago. This includes Would the total two Bangladesh did it last year ago. It was decided to be and I would not classify this as
What has happened now is impact on us, Nigeria is a large That is right. all the bylanes and big roads, wheeler exports to Nigeria when they did not permit the enforced. a setback. We encountered
that there has been a restate- country and motorcycles in So for all practical pur- small roads. So you can run a be about 30% of your total three-wheelers so these things The decision to enforce was these things all the time in
ment of this law and thereafter Lagos city is probably only poses one can say that two motorcycle on commercial exports? sort of cancel each other. So it also known to us somewhere emerging markets. It does not
more rigorous enforcement 6-7% of our business. Simi- wheeler and three wheeler basis in certain areas, but what No, less than that. is not a significant event from in December-January. really make us sit up and sweat.
because of congestion which larly, three wheelers is also taxis cannot ply in Lagos happens is it becomes more Between 25% and 30%? our perspective. They had announced it on feedback@livemint.com
 Telegram Channel: https://t.me/KittusWealthJourney

GLOBAL WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI 11

Hong Kong reports first CONVERSATIONS

death from coronavirus KEY NOTE
ON SUSTAINABILITY
India’s thought leaders, policy makers and corporate
leaders come together on a common platform to discuss
how businesses can contribute to build a sustainable
Death toll from outbreak rises to 427, while total infections soars to 20,638 future. The platform puts a special focus on water and
waste management.
Farah Master & Ryan Woo has confirmed 17 cases of the
HONG KONG/BEIJING virus. Hong Kong was badly hit Craig Leeson
by Severe Acute Respiratory Filmmaker & Global

H
ong Kong Syndrome (SARS), another Sustainability
reported its first coronavirus that emerged Ambassador,
coronavirus from China in 2002 to kill BNP Paribas
death on Tues- almost 800 people worldwide
day, the second and cost the global economy
outside mainland China from an estimated $33 billion.
a fast-spreading outbreak that Chinese data suggest the
has killed 427 people and new virus, while much more
threatened the global econ- contagious, is significantly less
omy. lethal, although such numbers Pierre Rousseau Kavita Sachwani
China’s markets steadied can evolve rapidly. The WHO’s BNP Paribas World Bank
after Shanghai’s main market Briand said most who had died
lost nearly $400 billion in or suffered severe infections
stock values the previous day, were people with underlying
and global markets also recov- conditions such as cancer, dia-
ered from a sell-off last week. betes or suppressed immune
But bad news kept coming. systems, or the elderly.
The Chinese-ruled gam- The World Health Organization (WHO) has declared the flu-like Raising the prospect of
bling hub of Macau asked virus a global emergency. BLOOMBERG another major spat—just as
casino operators to close for trade frictions were easing—
two weeks to help curb the local contagion as opposed to onions to a warning of spread Beijing on Monday accused Siddharth Sharma Tom Williams Ajay Dua
virus. And in the latest major visitors from China. via a video game—has led the US of spreading panic after Tata Sons WBCSD Former Union Commerce
corporate hit, Hyundai Motor New cases were reported in Asian governments to hit back it announced plans to block and Industry Secretary
was to gradually suspend pro- the US, including a patient in with arrests, fines and fake nearly all recent foreign visi-
duction at South Korean facto- California infected via some- news laws, alarming free tors to China.
ries because of supply chain one in the same household speech advocates. A handful of other nations
disruptions. who had been infected in At least 16 people have been have done the same.
Hong Kong’s first fatality China. arrested over coronavirus Britain updated its travel
was a 39-year-old man with an The World Health Organi- posts on social media in Malay- advice on Tuesday, telling citi-
underlying illness who had zation (WHO) has declared the sia, India, Thailand, Indonesia zens to leave China if they
visited China’s Wuhan city, flu-like virus a global emer- and Hong Kong. could.
the epicentre of the outbreak, gency and experts say much is Australia sent hundreds of “Where there are still Brit-
hospital staff said. still unknown, including its evacuees from Wuhan to an ish nationals in Hubei Prov- Samir Shah Tony Henshaw Bhuvan Srinivasan
Chinese authorities, mean- mortality rate and transmis- island in the Indian Ocean, ince who wish to be evacuated, Sattva Investment Aditya Birla Group KKR India Advisors
w h i l e , while Japan we will continue to work Advisors
reported a INFECTION SPREADS b e g a n around the clock to facilitate
record daily screening this,” foreign secretary
jump i n HONG KONG’S first THE only other THE Chinese-ruled some 3,700 Dominic Raab said.
deaths of 64 fatality is a 39-year- death outside gambling hub of
old with an underlying mainland China was a Macau asked casino
passengers With the world’s second
to 425. illness who had man who died in the operators to close for and crew biggest economy facing
The only visited Wuhan Philippines last week two weeks aboard a increasing isolation and dis-
other death cruise liner ruption, some economists pre-
outside held in dict world output will shrink
mainland China was a man sion routes. The outbreak did quarantine at the port of Yoko- by 0.2 to 0.3 percentage
who died in the Philippines not constitute a pandemic but hama, after a Hong Kong pas- points. Many airlines have
last week after visiting Wuhan, an epidemic with “multiple senger who sailed on the vessel stopped flights to parts of
the virtually quarantined city foci”, WHO director of global last month tested positive. China, with Hong Kong’s Cat-
at the epicentre of the out- hazard preparedness Sylvie Thousands of medical hay Pacific Airways Ltd saying
break. Briand told a news conference workers in Hong Kong, which on Tuesday it plans to cut 30%
Total infections in mainland in Geneva. had seen months of anti-China of global capacity over the
China rose to 20,438, and The uncertainties have political protests, held a sec- short term, including 90% to
there have been nearly 200 spurred strong measures by ond day of strikes to press for mainland China. 6th Feb, 2020 | Mumbai
cases elsewhere across 24 some countries—offending complete closure of borders The WHO is having a tele- Entry by invitation only
countries and China’s special Beijing’s communist govern- with the mainland after three conference this week with
administrative regions Hong ment which has called for checkpoints were left open. travel and tourism representa-
Kong and Macau. calm, fact-based responses “We’re not threatening the tives to work on recommenda-
Thailand’s tally of infections instead of scaremongering. government, we just want to tions for protecting crews so
jumped to 25, the highest out- The deluge of misinforma- prevent the outbreak,” said they can resume flights, Bri-
side China, while Singapore’s tion on social media—from a Cheng, 26, a nurse on strike. and said. REUTERS
rose to 24, four of those from recommendation to eat more The Asian financial centre feedback@livemint.com
 Telegram Channel: https://t.me/KittusWealthJourney

12 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI PERSONAL FINANCE

GLOBETROTTER CITIES: TAIPEI SHOPPING RESTAURANT STAY & TRANSPORTATION

Price in Price multiple Price in Price in Price multiple Price in Price in Price multiple Price in
The Mint Globetrotter Index compares the cost of 25 essential travel spends Delhi () (times) Taipei () Delhi () (times) Taipei () Delhi () (times) Taipei ()
for 50 cities across five regions. The analysis, published on 15 May 2019, can
be seen on www.livemint.com/globetrotter2019. Every Wednesday, in this Coke/Pepsi (0.33 litre) 33 1.9 63 Inexpensive meal 250 1.1 283 Hotel tariff (per day) 3,408 2.4 8,065
space, we list these 25 spends for a city and compare it with Delhi. 3-course meal Airbnb (per day) 2,446 1.5 3,560
Milk (regular, 1 litre) 50 4.1 206 (mid-range restaurant) 1,200 1.6 1,886
Mint One-way ticket
Globetrotter White bread (500 gm) 31 4.2 128 McMeal 250 1.2 307 (local transport) 30 1.6 47
Index 2019
ranking Local cheese (1 kg) 320 4.2 1,334 Local beer Taxi fare
118 460
(0.5 litre draught) 125 1.1 139 (base fare + 5 km) 3.9
RANK Apples (1 kg) 126 2.7 347
(out of 50) Cappuccino (regular) 124 1.6 201 Petrol (1 litre) 74 0.9 69
Bananas (1 kg) 52 2.9 152
21 Oranges (1 kg) 59 3.3 199 LEISURE
1. All data from www.numbeo.com, barring
two exceptions (given below). 2. City-
specific price data as of 3 February 2020.
Water (1.5 litre) 29 3.1 88 Price in Delhi () Price multiple (times) Price in Taipei () Globetrotter ranking as of 19 April 2019.
Overall price 3. For hotel tariffs, we considered three-star
multiple Wine (mid-range) 750 1.4 1,061 Movie ticket (1 seat) 300 2.4 707 hotels on Hotels.com and Expedia.com. We
to Delhi (times) searched for two guests, stay of 1-2 June, and
Local beer (0.5 litre) 107 1.0 110 Jeans (Levi's 501 or similar) 2,485 2.0 4,868 sorted the top seven listings by guest rating,
Cigarettes and took their average. 4. Airbnb tariffs
300 0.9 259 Summer dress (Zara, H&M or similar) 2,891 0.8 2,401
1.67
sourced from Airdna.co (the analytics arm
(Marlboro, pack of 20) of Airbnb). Tariff shows average for studio
Nike running shoes (mid-range) 3,837 1.6 6,141 apartment or one-room apartment for city.
SANTOSH SHARMA/MINT Source: howindialives.com

Four factors that may rekindle EXPENSE

ACCOUNT
buyers’ interest in real estate MONIKA HALAN

Respond to this column at

monika.h@livemint.com

Builders are now focusing on selling affordable homes and completed units as they are more in demand
MAKING SENSE OF
Renu Yadav
ISTOCK
“Developers now understand
THE BUSINESS OF
renu.yadav@livemint.com buyer sentiment which, to a great
extent, is led by transparency and LIFE INSURANCE
T
he real estate sector, timely delivery. Another reason

T
which accounts for the for the focus on execution is Rera, he Life Insurance Corp. of India (LIC) has been a partner
majority of the savings which is stringent about timely Choosing a of middle-class India for decades in building an annual sav-
listed
of Indian households, delivery,” said Jain. builder
ing habit towards a future corpus. Its army of agents pro-
has been notorious for Generally, ready-to-move in doesn’t cut vided doorstep service to millions of Indian investors at a time
malpractices such as project properties come at a premium out the risk when there were few long-term corpus-building financial prod-
delays, siphoning of investors’ over under-construction proper- bit.ly/31qdb2M ucts in the country. But the feature of a monopoly, and that too
money, changing the layout of the ties, but the gap is reducing. owned by the government, is that it is slow to take note of change
projects without the consent of “There are multiple reasons for and upgrade processes and practices. The post-2010 Indian
homebuyers, increasing the prices this. One, the developers are not financial sector is very different from the 1980s and even 1990s
arbitrarily and so on. However, increasing the prices of under- with modern financial products and mark-to-market practices
given the fall in demand and cor- construction properties every six on equity, bond and loan valuations to ensure transparency and
rosion of homebuyers’ trust, months or so, which used to hap- fairness. As of 31 March 2019, LIC managed almost 80% or ₹27.61
developers are now being forced pen earlier. Two, even new trillion of Indian household money in the life insurance sector,
to get their act together. Here are launches are happening at ration- and had an annual premium book of just over ₹3 trillion in
a few factors that may help rekin- alized prices and there is hardly 2018-19, that’s about 66% of the total market. As this behemoth,
dle interest in the sector. any organic growth,” said Jain. also used by the government of the day to bail out its stock and
bond paper, which carries a sovereign guarantee gets ready to
AFFORDABLE HOUSING UNIQUE LOANS list on the stock market, it is important that the business of life
The affordable segment has Recently, State Bank of India came insurance is better understood by policyholders, investors and
turned out to be the dark horse for out with a unique home loan prod- commentators.
the real estate sector. Affordable uct, which guarantees to pay back In its simplest form, a life insurance policy is called a pure term
houses (worth up to ₹50 lakh) the principal to the homebuyer in plan that just insures the life and pays on death over the life of the
accounted for 53% of the sales in case the developer fails to give the policy. So ₹8,000-10,000 for a 30-year-old gets about ₹1 crore
2019 in the top eight cities, accord- said Gagan Randev, national it will be hard to find buyers in new Pvt. Ltd. Recognizing the gravity possession within the promised of cover. But this is a tiny part of the life insurance market in India
ing to data provided by Liases director, capital markets, Colliers projects,” said Katiyal. of the problem, the government time. The bank may monitor the since the agency network does not find it profitable to sell. About
Foras, a Mumbai-based real estate International India. Even as fewer new developers recently announced the creation progress of the project and dis- 15% of the Indian market is in the more transparent unit-linked
research firm. Moreover, of the Developers are also offering are expected to enter, some of the of a stressed fund worth ₹25,000 burse the funds accordingly. insurance plans (Ulips) that have the structure of a mutual fund
total launches of 269,000 units in more amenities in the affordable existing ones are being taken over crore to provide last-mile funding The product is unique as banks with a wrap of a life cover, the rest being in traditional plans. Ulips
2019, 57% were from the afforda- segment. Recently, MRG World, a by big builders. “A lot of projects to stuck projects. have never given such a guarantee. were introduced in India soon after the market opened to private
ble segment. Gurugram-based developer in the which are financially unviable are In fact, buyers prefer ready-to- In fact, in the past, some financial entities in 2000 and brought better transparency to what goes
What’s also worked for the seg- affordable segment, launched resi- being acquired by some of the big move-in properties as they don’t institutions issued loans without on inside the product.
ment are the schemes announced dential project Ultimus. “For the developers such as Godrej Proper- have the risk of delay and charge ensuring that the developer had Ulips have a clear segregation since the premium is split into
by the government. Now even big first time, an affordable project will ties, Mahindra Lifespace Develop- no GST. The share of ready-to- the necessary approvals. With investible and non-investible parts. The non-investible part goes
developers are foraying into it. For have a dedicated 25,000 sq.ft area ers and Prestige. Such moves will move-in properties in overall sales such a product, the bank will do to the “non unit fund” that is used for the mortality costs, other
instance, Macrotech (Lodha as children’s play area, along with benefit homebuyers,” said Vikas went up to 25% in 2019 as com- their own due diligence. expenses and profits on good actuarial pricing of lives. The
Group), a Mumbai- a swimming pool that Wadhawan, group chief financial pared to 11% in 2014, This is basically a investment part of the premium goes
based premium The end is half the Olympic officer, Housing.com, Mak- according to data SBI’s home loan trust building exer- LIC listing will to the “unit fund”. The “non unit
developer, recently consumer is the pool size,” said Rajat aan.com & PropTiger.com. from Liases Foras. that guarantees cise, said experts. “By open the door reserves” are used to pay death claims.
announced the key beneficiary of Goel, joint managing “The end consumer is the key Sensing the launching this prod-
launch of its afforda- director, MRG World. beneficiary of consolidation across change, developers
payback of the to questions on Ifmates the insurance company gets its esti-
consolidation principal in case uct, SBI will be dem- what happens
wrong and faces a higher num-
ble brand, Crown, stakeholders, owing to implemen- are focusing on com- onstrating its confi- ber of death claims, it needs to pay out
across of project delay is dence in certain to a chunk of
which will price most CONSOLIDATION tation of Rera and other initiatives. pleted projects. In of own reserves—it cannot dip into the
stakeholders in seen as a trust-
units between ₹25 Earlier, in the
real estate sector absence of regulation,
Today, a consumer is clearly more 2019, DLF Ltd developers and pro- Indian savings investment pool. Also, the policy-
lakh and ₹50 lakh. empowered and is set to enjoy the announced that it will building exercise jects and also give holder has a fairly clear idea of what
“Amid the down- anyone with a land fruits of consolidation, which will sell units only after homebuyers the con- costs and returns are since the product
trend in the last two bank or money could lead to standardization in quality, the completion of its fidence to look at discloses the net asset value of the investment pool every day.
years, affordable housing was like become a developer. That’s diffi- transparency in pricing and, most projects. DLF’s ready-to-move-in such projects,” said Randev. The story is much more muddled in traditional plans and LIC
a saviour. With the middle class cult in the current regulated envi- importantly, timely delivery,” said luxury housing project in Guru- Given the fact that the sector is has 99.76% of its business in these more opaque products. There
constituting 80% of Indians, the ronment which requires enhanced Shveta Jain, managing director, gram, The Ultima, managed to sell unlikely to see any uptake in terms are two kinds of traditional products. Those that do not share in
demand is huge. But the supply is compliance by developers. Also, residential services, Savills India, a about 75% of the units on the very of prices in the near future, this is the profits of the company are called “non-participating” (non-
limited with a handful of dedi- given the tough market condi- real estate consultancy firm. first day. Some developers are a good time to buy a house for end par) and those that get a share of profit are “participating” (par).
cated developers,” said Honeyy tions, where even established enti- launching projects where units are use. But evaluate the options care- The non-par is the most basic product with the entire premium
Katiyal, founder, Investors Clinic, ties are struggling to sell units, COMPLETED UNITS near completion. fully. In case you are considering going into one pool called the non-par pool—there is no segrega-
a real estate consulting firm. non-serious developers lacking The biggest issue that the industry “The year 2020 will also witness investing, remember that real tion of the mortality cost and investment. Investors are disclosed
The presence of reputed devel- professional capabilities are exit- is currently grappling with is stuck consumer confidence in projects estate is not a liquid investment a guaranteed return (this is usually an annual 2% to 4% return)
opers also boosts demand. “Many ing the business. This is leading to or delayed projects. Around which are completed or where sig- and is unlikely to see any signifi- and insurers have to manage costs and death claim payouts from
customers, especially first-time consolidation in the industry. 174,000 homes are stuck across nificant construction has been cant price gains in the near future. the fund.
buyers, get satisfaction from buy- “The number of new and seven big India cities, according to done. Buyers are unwilling to take Ashwini Kumar Sharma con- It is in the par product that the entire story of the insurance
ing from a reputed developer,” upcoming builders will go down as ANAROCK Property Consultants any risk,” said Katiyal. tributed to the story industry plays out. Par products give the policyholder a base level
guaranteed return and then offer a “bonus” every year as a share
of profits earned by his money. Of course, the nomenclature is
designed to mislead because the return is not a “bonus” but
earned profit. The premium comes into a “par fund” where there
is a notional division between mortality, costs and investment but
this stops short of unitization and a hard break between the insur-
What is joint tenancy? HOW MUCH TAX DO YOU PAY ON DEBT INVESTMENTS?
Any portfolio should have a balanced mix of asset classes. Diversification helps reduce the overall risk. For instance, equity
ance part and the investment part. A basic finance 101 problem
with this pool is that it is a common pool across generations of
investments tend to give higher returns than all other asset classes over the long run, but they are also riskier. To balance that, policyholders, making it difficult to apportion gains and losses
Ashwini Kumar Sharma according to the investment decisions. A 10% interest bond
one must invest in debt-related products. While these too carry some risk, they are considered safer. Also pay heed to the
ashwini.s@livemint.com taxation rules to know what the net returns would be. Any change in rules can affect the reason why you had invested in the bought 10 years ago will still fund the returns of investors who
product. Here’s a look at the tax rules that apply to some debt-related investment products buy into the pool in the years to come. Apart from being inher-

Y ou can own a house

individually or as a
co-owner with your family
member or even friends and
business partners. How-
ever, there are two types of
co-ownership—joint ten-
ancy or common tenancy.
The basic difference
between the two is how and
to whom the share of the
co-owner gets transferred
upon the death of the other
co-owner.
Under joint tenancy, if
one “tenant” or owner dies,
his or her share in the house
goes to the other “tenant”,
or the survivor. In the case
ently unfair in a quasi-market linked product, this leaves enough
elbow room for the firms to “manage” returns on some products
at the expense of others.
DEBT-ORIENTED FIXED POST OFFICE
MUTUAL FUNDS DEPOSITS DEPOSITS Par products are supposed to share 90% of the profits earned
with policyholders. This sounds very good till you ask the ques-
tion: but what about the costs? High costs will cause profits to fall
(What is long term? Tax on interest For senior citizens, Tax on interest For senior citizens, and even a 90% sharing of profits may not mean high returns to
of common tenancy, if one More than 3 years) interest up to interest up to the policyholder. Life insurance companies remain reluctant to
tenant dies, his or her inter- Slab rate 50,000 is exempt Slab rate 50,000 is exempt answer this question of what have past cohorts of policyholders
est in the property goes to Short-term capital gains tax in par products earned in hand. Our analysis of past products
the legal heirs and not nec- across the industry tells us that these returns are in the range of
essarily to the other Slab rate 4%.
NATIONAL SAVINGS SENIOR CITIZEN
co-owner or survivor. CERTIFICATE SAVINGS SCHEME The listing of LIC will bring many of these issues into focus.
Long-term capital gains tax
Ideally, at the time of buy- Both shareholders and policyholders need to know what the real
ing, owners should disclose 20.8% insurance deal is. Many times the interest of the shareholder and
the nature of ownership and (With indexation) Tax on interest If interest is reinvested, Tax on interest No tax deducted at the policyholder will be in conflict. But the listing will at least
the quantum of their deduction up to 1.5 lakh is source on interest up open the door to more questions and better understanding of
respective shares in the title
Slab rate allowed under Section 80C Slab rate to 50,000 where a large chunk of the Indian household savings go.
document or sale deed. Monika Halan is consulting editor at Mint and writes on house-
SANTOSH SHARMA/MINT For further details on taxation, go to bit.ly/2pOeeH9 Source: EY, Mint research
hold finance, policy and regulation
 Telegram Channel: https://t.me/KittusWealthJourney

PERSONAL FINANCE WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI 13

ISTOCK

REITs may work in the long

term but evaluate the risks
Property vacancy is one of the biggest risks that real estate investment trusts face
ISTOCK
Tinesh Bhasin returns over three-five years,” said
tinesh.b@livemint.com Nishant Agarwal, managing part-
ner and head, family office, ASK

A
fter the success of
Embassy Office Parks,
India’s first real estate
investment trust
(REIT) that listed on
the stock exchange last year, more
developers are planning to join in.
Recently, Mindspace Business
Parks REIT has sought the Securi-
ties and Exchange Board of India’s
(Sebi) permission to launch an ini-
tial public offer (IPO). Mindspace
REIT is backed by developer K.
Raheja Corp. and private equity
investor Blackstone.
According to ANAROCK Capital,
over 150 million sq.ft of rent-yield-
ing office properties could get
listed in the top seven cities in three
years, which is 25-30% of the total
Grade A office space in the country.
“At least four more developers are
planning to go for a listing of their
REITs. These include Bengaluru-
based Prestige Group and RMZ
Corp. Then there are Mumbai-
based Godrej Properties and Pune-
based Panchshil Realty,” said Shob-
hit Agarwal, managing director and
CEO, ANAROCK Capital.
REITs are similar to mutual
funds—the money is pooled and
invested in assets. While mutual
funds invest in stocks, bonds or
gold, the underlying asset in REITs
is physical real estate.
WHAT WORKS FOR REITs
REITs allow investors to take expo-
sure to high-quality rent yielding
properties, which may be other-
wise unaffordable. Once listed, the
units of REITs can be traded on the
exchanges, which helps you avoid
the liquidity issue that real estate
investments typically face. This
also means that you can choose to
bear only a fraction of the overall
cost by buying just a few units.
Moreover, the entry cost is low
compared to buying a property.
When Embassy Office Parks raised
money in March 2019, the mini-
mum investment in the IPO was ₹2
lakh. Later, Sebi lowered it to
₹50,000. “Since only one REIT is
listed at present, the lot size is
decided by the exchanges. This
could be brought in line with Sebi’s
REIT public issue requirement of a
minimum lot value of ₹50,000 or a
5 things that
work for REITs
 Low investment amount
for high-quality realty
 Easy to liquidate
 No entry or exit load
 Diversification of location,
properties and tenants
 Lower taxation than
ownership
lot size of 100 units, whichever is of
higher value,” said Venu Madhav,
chief operating officer, Zerodha, an
online broking platform. The mini-
mum lot size for the Embassy Office
Parks REIT is 200 units.
Another aspect that works in
favour of REITs is safety. According
to Sebi regulations, 80% of the real
estate portfolio held by a REIT
must consist of developed and
income-generating properties. Up
to 20% of the value of assets can be
invested in under-construction
properties, completed but not rent-
generating properties, or listed or
unlisted debt of real estate firms.
INCOME FROM REITs
REITs can generate income under
two heads. First, rental income,
which is distributed as dividends. It
can be about 6-8% of the annual
investment initially and increase
later as occupancy and rents
increase. Sebi regulations stipulate
that 90% of the rental income will
have to be paid out as dividends.
Second, income from interest
earned. In a REIT, the properties
are not directly held by the trust but
through a special purpose vehicle
(SPV) in which the trust holds a
stake. The trust can also lend to the
SPV. The money that the SPV
repays is distributed as interest
income to the unitholders.
The returns can increase with
any rise in rents, leasing of vacant
space, addition of new properties in
the REIT’s portfolio through new
development, leasing of under-
construction projects and so on.
“Any value-added service can aid in
better rent realization. So does
reduction in interest rates in the
economy and increase in the capi-
tal value of the underlying assets.
Once all this starts playing out, an
investor can expect up to 11-14%
Wealth Advisors.
You could also gain when you
sell units. Embassy Office Parks
REIT closed at ₹402.23 on 3 Febru-
ary, almost 34% above the issue
price in over 10 months. The
REIT’s issue price was ₹300.
“Typically, commercial leases
are six to nine years long or more,
with a rent escalation clause. This
makes REITs less volatile than
other investment avenues,” said
Samantak Das, chief economist and
head of research, JLL India, a real
estate consultancy firm.
EVALUATE WELL
Before investing, evaluate the REIT
based on the track record of the
sponsor and the brand. Assessing
the quality of construction could be
difficult for retail investors. “They
should, therefore, look at the loca-
tion of the different properties, the
rental yield on each and the ten-
ants. All these are available in the
offer document,” said Das.
One of the biggest risks that
REITs face is vacancy. An investor
should, therefore, look at the occu-
pancy of the properties with a REIT
and the average tenure of the lease.
Property occupants should mostly
be bluechip companies and multi-
national corporations.
If you are investing in the IPO,
look at institutional investors as
well. As there is only one listed
REIT, avoid investing too much
just because the returns are better
than what fixed-income instru-
ments give. As a category, REITs sit
somewhere between debt and
equities. “Allocation to REIT can be
15-25% of the debt portfolio. But it
should be diversified between
three-four issues,” said Agarwal.
Then there are other risks such
as an economic downturn, which
can affect the demand for commer-
cial real estate. Oversupply of com-
mercial space in a location can
affect the rate at which the rent
rises. Delay in completion of under-
construction properties will also
impact earnings.
Investors, therefore, need to
treat REITs as income-generating
assets, which can deliver slightly
higher returns than fixed deposits
over the long term.
Even
smaller
developers
Owner has the unfettered right to
are eyeing
REITs now:
CBRE’s
Anshuman
bequeath his property to anyone
Magazine
Aradhana Bhansali
bit.ly/2RZ5Ofz
A Hindu male died leaving
behind a Will duly exe-
cuted by him. His mother
and wife are his only heirs.
He does not have children.
In the Will, he has
bequeathed a flat he
bought himself to his wife
and mother as joint tenants
or owners. After the death
of either joint owner, will
the remaining person get
the entire share?
—Name withheld on request
Assuming that the deceased
person’s Will is very clear on
the bequest made with respect
to the subject flat in favour of
his mother and his wife, on a
joint tenancy or on a joint
ownership basis, and further
that the Will has not been chal-
lenged till date, both the
mother and the wife, during
their lifetime, will be equally
entitled to the subject flat.
Under the concept of joint
tenancy or joint ownership,
there exists a right of survivor-
ship. That is to say, when a
property is owned by joint ten-
ants or joint owners, and if one
of the owners dies, the interest
of the deceased owner auto-
matically gets transferred to
the surviving owner, thus
causing the surviving owner to
become the absolute owner of
such property.
Therefore, in this case, upon
the demise of the mother, the
wife will become the absolute
owner of the subject flat, or
vice-versa in case the wife pre-
deceases the mother.
My paternal grandfather
has two sons and three
daughters. He wants to
transfer some property to
me and my elder brother.
1990. My grandfather, his
ASK MINT
m two brothers and three sis-
LEGAL ters also passed away by
2016. The property is the
The said property was pur- last remaining asset held
chased by him and not by my uncles. But now the
inherited. Can my grandfa- heirs of my grandfather’s
ther transfer the property sisters are asking for an
to us without taking the equal share in the prop-
consent of his other son erty. Do they have the right
and three daughters? to claim this portion? What
Please note that both my should we do?
grandparents and all five of —Vijay Gotmare
their children are still It is assumed that the Hindu
alive. personal laws are applicable to
—Siddhartha Mohapatra you and your family and that
We have assumed on the the property was treated as a
basis of the information pro- joint Hindu family property,
vided by you that the property where all the heirs of the great
your grandfather has is a self- grandfather enjoyed common
acquired property, and not an interest.
ancestral one. Your grandfa- According to the Hindu
ther wishes to gift Succession Act,
and transfer his If the property is 1956, which pre-
self-owned prop- self-acquired, not vailed prior to the
erty to his two Hindu Succes-
ancestral, the
grandsons during question of taking sion (Amend-
his lifetime, ment) Act, 2005
despite the fact
consent from (effective from 5
that his wife, two anyone does not S e p t e m b e r
arise
sons and three 2005), daughters
daughters are were not consid-
alive. ered as members
Please note that your grand- of a Hindu Undivided Family,
father being an owner of his and, consequently, were
property has the absolute and excluded from claiming any
unfettered rights to deal with share in the ancestral or copar-
his property in the manner he cenary property of the family.
wishes. Nobody can prevent Since your great grandfa-
him from gifting his property ther died prior to September
to his grandsons, or to any per- 2005, the daughters of the
son he desires. great grandfather, that is, the
The question of seeking three sisters of your grandfa-
consent from his sons and/or ther, were not entitled to a
three daughters or any other share in the ancestral prop-
family member does not and erty, during their lifetime.
cannot arise in this case. Consequently, their legal heirs
are also not entitled to any
We have 15 hectares of land share in the property.
in Nagpur. The land owner- Aradhana Bhansali is part-
ship papers were in the ner, Rajani Associates. Queries
name of my great grandfa- and views at mintmoney@live-
ther, who passed away in mint.com

H
A-rated health
ow do you buy a health insurance plan? If you settle with the plan each of these, the ages are 30, 45, 60 and 75 years. For family floater plans,
your agent sells or are happy knowing you have bought the cheapest there are four sums insured (₹5 lakh, ₹10 lakh, ₹20 lakh and ₹50 lakh) and
one, there is a bit of unlearning and a lot of learning in store for you. To two age categories—eldest insured is 30 years old and 45 years old. For
give you a ready comparison, we designed Mint SecureNow Mediclaim
Ratings (MSMR). The full ratings can be seen at: www.livemint.com/
the first category of eldest person being 30, the cover is for three people,
two adults and one child. For the 45 years category, the cover is for two
MEDICLAIM
plans for you mintmediratings2019. Here, only the A-rated plans have been shown. For
the policies that were rated B and C, see the link mentioned. For individual
plans, the sums insured are ₹5 lakh, ₹10 lakh, ₹20 lakh and ₹50 lakh. In
adults and two children. This time, we take a look at the premiums and
ratings of individual policies with a sum insured of ₹50 lakh for two age
categories—60 years and 75 years. By Deepti Bhaskaran
RATINGS

Individual SCORE
policies PREMIUM PRE-EXISTING LIMIT ON
INSURANCE PRODUCT (₹; INCLUDING DISEASE ROOM NO-CLAIM WELLNESS RESTORE CLAIMS CLAIM CLAIMS
COMPANY NAME 18% GST) PREMIUM EXCLUSION RENT BONUS PROGRAMME BENEFIT SETTLEMENT COMPLAINTS AGEING TOTAL
Age
60 years Maximum score 25.00 15.00 15.00 5.00 2.50 2.50 25.00 5.00 5.00 100.00

No. of people 1 ICICI Lombard Gen. Ins. Complete Health Ins.(iHealth)

covered 37,611 25.00 9.90 15.00 2.50 2.50 2.50 12.50 5.00 5.00 80
1 2 Bajaj Allianz Gen. Ins. Health Guard
68,546 18.75 4.95 15.00 5.00 0.00 2.50 25.00 5.00 2.50 79
Sum insured 3 Apollo Munich Health Ins. Easy Health Exclusive
60,857 25.00 4.95 15.00 5.00 2.50 0.00 12.50 5.00 5.00 75
₹50 lakh 4 Bajaj Allianz Gen. Ins. Health Care Supreme
84,587 12.50 9.90 15.00 2.50 0.00 2.50 25.00 5.00 2.50 75
5 Apollo Munich Health Ins. Optima Restore
62,344 18.75 4.95 15.00 5.00 2.50 2.50 12.50 5.00 5.00 71
6 ManipalCigna Health Ins. ProHealth Ins. (Preferred Plan)
82,316 12.50 9.90 15.00 5.00 2.50 2.50 12.50 5.00 5.00 70
7 Apollo Munich Health Ins. Easy Health Premium
68,930 18.75 4.95 15.00 5.00 2.50 0.00 12.50 5.00 5.00 69
8 Max Bupa Health Ins. Health Companion
56,809 25.00 4.95 15.00 5.00 0.00 2.50 12.50 0.00 2.50 67
9 Royal Sundaram Gen. Ins. Lifeline - Supreme
64,821 18.75 4.95 15.00 5.00 0.00 2.50 12.50 5.00 2.50 66
10 HDFC Ergo General Ins. Health Suraksha Gold - Regain ECB
51,029 25.00 0.00 15.00 5.00 0.00 2.50 12.50 5.00 0.00 65
11 Apollo Munich Health Ins. Health Wallet
89,524 12.50 4.95 15.00 5.00 2.50 2.50 12.50 5.00 5.00 65

Individual
SCORE
policies
PREMIUM PRE-EXISTING LIMIT ON
INSURANCE PRODUCT (₹; INCLUDING DISEASE ROOM CO-PAY DISEASE-WISE DISEASE-WISE WELLNESS CLAIM CLAIM CLAIMS
Age COMPANY NAME 18% GST) PREMIUM EXCLUSION RENT CAPPING WAITING SETTLEMENT COMPLAINTS AGEING TOTAL
75 years Maximum score 20.00 13.05 13.05 5.00 5.00 5.00 3.00 25.00 5.00 5.00 100.00
No. of people
covered 1 Bajaj Allianz Gen. Ins. Health Care Supreme
1,82,960 10.00 8.91 13.50 5.00 5.00 3.75 0.00 25.00 5.00 2.50 79
1 2 ICICI Lombard Gen. Ins. Complete Health Ins.(iHealth)
Sum insured 91,656 20.00 8.91 13.50 5.00 0.00 3.75 3.00 12.50 5.00 5.00 77
3 ManipalCigna Health Ins. ProHealth Ins. (Preferred Plan)
₹50 lakh 1,35,523 15.00 8.91 13.50 0.00 5.00 0.00 3.00 12.50 5.00 5.00 68
4 Max Bupa Health Ins. Health Companion
1,26,665 20.00 4.46 13.50 5.00 5.00 3.75 0.00 12.50 0.00 2.50 67
5 Royal Sundaram Gen. Ins. Lifeline - Supreme
1,34,760 15.00 4.46 13.50 5.00 5.00 3.75 0.00 12.50 5.00 2.50 67

Data updated as on 23 September 2019 SANTOSH SHARMA/MINT

 Telegram Channel: https://t.me/KittusWealthJourney

14 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI VIEWS

OUR VIEW MY VIEW | ARTHANOMICS

PTI

Modi’s approach to economics

doesn’t tick any of the old boxes
It is politics-cum-economics, with the key element being ideology-free opportunistic pragmatism

Modi seems tight-fisted by nature,
which may explain his fiscal conserva-
tism in four of the five years of his first
term. This is evident in the
decision to rein in fiscal looseness in the
Union Budget for 2020-21, when the
slowdown warrants a bolder approach
to infrastructure and consumption
spending.
R. JAGANNATHAN As prime minister, if one were to
is editorial director, ‘Swarajya’ magazine exclude his consistent pro-poor rhe-
toric, Modi can be seen as non-doctri-
naire, with his politics and economics
fused. His stance changes with the cir-
bold and dramatic gambits. This is what
brought on demonetization and the
goods and services tax (GST). Despite
the economic havoc caused by demone-
tization, Modi was firm in pushing
ahead with GST barely a few months
later, which shows his readiness to go
against common wisdom to get things
done. No one barring Modi could have
got all states on board by promising
them a blank cheque of 14% annual rev-
enue growth. GST is still a shoddy work-
in-progress because of that rash prom-
ise and the tax’s poor design, but it got

Kerala is on high alert

cumstances. You cannot explain his done. Once it is fixed, it will always be
economics without his politics. His first- seen as Modi’s achievement.

A
fter eight budgets, including the term policies were dictated by his need On the trade front, Modi has over the
“interim” one last February, and to be seen as clean and hard on corrup- last two years gone swadeshi (domestic-
several major off-budget initia- tion, which may be why he avoided production-focused). This is partly

as we all ought to be tives, this is probably as good a time as

any to define Modinomics. Early expec-
tations of Prime Minister Narendra
Modi doing a Ronald Reagan or a
meeting businessmen—something he
did routinely as Gujarat chief minister.
In his second, he appears to acknowl-
edge that the economy cannot be
because he has to pander to protectionist
voices within his own Sangh parivar and
also because he knows that India cannot
be competitive globally anytime soon
Margaret Thatcher were clearly off the revived without business-government without second-generation reforms.
mark. But just as one was about to see trust. He has thus repositioned himself Modi’s second term was widely
The state has responded with alacrity to just a few cases of coronaviral infection and gone Modi as a statist with little trust in busi- as a proponent of clean “wealth crea- expected to focus on the economy,
ness or markets, we have suddenly got tion”, rebuilding trust with India Inc. given the slowdown, but his first moves
into mission mode to contain it. Its experience could hold lessons for the rest of India big-bang moves in the form of massive Even in his populism, he has been were all political: Article 370, Ram
corporate tax cuts and bold privatiza- conservative, preferring empowerment Mandir, Citizenship (Amendment) Act.
tion moves. over entitlement. Thus, the Ujjwala gas While his economic moves were
So, what really is Modinomics? It is cylinder beneficiary gets a free connec- announced in parallel, the political

T
he government of Kerala has
declared the novel coronavirus
outbreak a state calamity after
three individuals, all students,
tested positive for the infection.
The three had reportedly returned
last month from China’s Wuhan, the origin of
the menace, and are being treated at hospitals
in Kasaragod, Thrissur and Alappuzha. The
declaration of a calamity is not meant to set off
panic, but to scale up efforts and funds allotted
to contain the transmission of the virus. The
southern state has bolstered its efforts to
identify, isolate, counsel and treat potential
cases of coronaviral illness. It has mobilized
40,000 health staff, as well as officials from
other government departments, to mount a
contact-tracing exercise. The state has estab-
lished 28 isolation facilities and traced 80
people who had been in direct contact with the
three infected students, placing them under
observation in some of the special wards. More
than 2,000 people are under community
surveillance for symptoms of the flu-like
holders for the time being. Contagion, it not easy to say, for Modi represents a tion, but no free refills. The affordable action made headlines. Again, this
seems, is possible even during the incubation post-ideological world view whose home buyer gets rate subventions, not shows the link between Modi’s politics
political economy solutions go beyond anything more. The ordinary citizen or and economics. To focus on the econ-
period of the ailment, which means it could the left-right binary, or socialism and unorganized sector worker can buy omy, he has to propitiate his political
possibly get passed on by people who are not market economics. This is not surpris- himself a cheap pension plan subsidized base. The political moves made in the
even aware of being carriers. On available ing in a world where Democratic presi- by the state, but it’s not a freebie. Per- first six months of his re-election now
reports, it could take anything from a few days dential candidates are jostling to appear haps the only free thing Modi has allow him to focus on fixing the econ-
to a fortnight for signs of the illness to surface. more socialist than the rest in the offered is the PM Kisan Samman pay- omy, as it neutralizes the opposition
world’s most capitalist country, the US. outs to farmers (₹6,000 annually), but within his camp. He is free to follow his
This makes it that much harder to stop it from There is no such thing as a “Washington that came at the fag end of his first term, bolder reforms—from privatization and
spreading. In affected zones, many more consensus” in a de-globalizing world. when general elections loomed. labour reforms to restructuring the
people are reckoned to have it than the official The operative buzzwords for this era are The promise of a corporate tax rate public sector and the bureaucracy—
counts would have us believe. This, however, “whatever works”. cut, made in 2015, came in conservative without being tripped at every stage by
also means that it may be less lethal than That should define Modinomics, too, doses. It was never delivered fully till Sangh ideologues.
but it does not go far enough. For Modi- September 2019. Once he saw the need Modinomics is clearly politics-cum-
earlier thought. If a larger number are infected nomics is defined not just by pragmatic for a dramatic move to revive animal economics, with the key element being
than reported, then the initially calculated opportunism, but by Modi’s persona. spirits, he went the whole hog in one opportunistic pragmatism unhindered
fatality rate of 2% may well be an overestimate. The Prime Minister can perhaps best be day. It was a gamble in a difficult eco- by economic ideology. In the years
However, even if the virus is not as deadly as described as a conservative modernizer, nomic situation. ahead, expect conservative budgets,
first assumed, there should be no compla- an incremental reformer, with a pen- Modi’s essential conservatism is with big gambles outside them. Modi
chant for the occasional big gamble. counterbalanced by a predilection for 2.0 has come a long way from Modi 1.0.
cency. One reason it has been classified as a
global health emergency by the World Health
Organization is that everyone is at some risk.
Our medical research establishment may
need to get into the act. As of now, no cure has
been found. The therapies in use are of the hit-
and-miss variety. In Thailand, doctors claim to www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Chandigarh*, Pune* Friday, February 5, 2010 Vol.4 No.31 Rs. 3.00 24 PAGES
+ 4 PAGES MARKETS WATCH

disease. Meanwhile, around 600 Indians air- have made a breakthrough with a combination CORP: Unilever
says HUL
an underperformer >6
ECONOMY: IMF pegs India’s growth

lifted by the Union government from Wuhan of an anti-flu drug and anti-virals used against EXCLUSIVE PARTNER
at 6.75% for the current fiscal >10
WSJ: Greece, Portugal in focus
as debt woes intensify >18

are under quarantine in Haryana, and a few HIV, but this treatment’s efficacy awaits scien-
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What’s inside
IT spending bounces back
suspected of having caught it have been taken tific confirmation. Information on the virus is You can’t take a knife
Food inflation accelerated to 17.56% in the week to 23
January from a year earlier, following a 17.4% gain the
previous week, as economists bet the central bank will
raise benchmark interest rates before the next policy
announcement on 20 April, after ordering lenders to keep
aside more cash reserves last week. >P3
Technology sector
rebounding faster than Indian software companies Tech firms
LEADING THE NEWS CORPORATE NEWS others; Cisco sees a upbeat about
Vodafone’s India revenue new phase of recovery set for a growth surge

to an army hospital. While chances of the virus being shared globally and it would help if we
The Comptroller and Audi-
tor General will by March
submit the report on its in-
grew 13.8% to £767 million
in the December quarter, as it returns to growth prospects

on a plane anymore,
quiry into the expenses that beating rivals Bharti Airtel B Y S HAUVIK G HOSH &
UPWARD MARCH
L ISON J OSEPH
RIL incurred in exploring
gas in the Krishna-Goda-
and RCom. >P6 B Y B EN W ORTHEN
D ON C LARK
&
······················· Nasscom expects exports to rise
by 15% by March 2011.
mint ANALYSIS
vari basin. >P3 VIEWS The Wall Street Journal
NEW DELHI/MUMBAI

*** In our minds, we ·························

I ndia’s software compa- ($ bn) B Y V ENKATESHA B ABU

B
Talks on a free trade agree- are the most vital usiness spending on nies estimated a 5.5% 60 venkatesha.b@livemint.com
growth in exports in the cur- 56-57 ·························

showing up in other parts of India are not also committed resources to what is turning
ment between EU and India things in our technology goods and
are stuck with the former’s organizations. services is returning as rent fiscal year, reaffirming BANGALORE

demands on tariff elimina-

tion and access to govern-
ment procurement remain-
Reality, finds
Sidin Vadukut,
is nothing like
the economy mends, pumping
new life into suppliers such as
Cisco Systems Inc., though it
a growth trend that signals
their emergence from a
slump triggered by the glob-
50
47.1
49.7
I s the worst over for the Indi-
an software services indus-
try?

but you can get on

ing unresolved. >P4 that. >P22 has been slower to reach other al meltdown that saw over- The numbers would seem to
sectors. seas customers slashing suggest so; over the past
The big maker of networking technology budgets. 40 weeks, global technology gi-
gear on Wednesday posted a Nasscom expects exports ants such as Microsoft Corp.,
to rise faster, by as much as

thought to be worthy of alarm, other state out to be a global mission. After China
23% jump in quarterly profit
and 8% gain in revenue, its
first such increases in a year.
The economy has entered a
new “phase of the recovery,”
said John Chambers, Cisco’s
chief executive, in a call with
15%, to $57 billion (Rs2.6
trillion) in the year to March
2011 from $49.7 billion in
the year earlier, it said in
Delhi on Thursday. Nass-
com said exports were $47.1
Hewlett-Packard Co., Apple
Inc., Google Inc., Cisco Sys-
30 tems Inc. and IBM Corp. have
2008-09 2009-10 2010-11
declared results that are, in
Source: Nasscom
most cases, better than what
AHMED RAZA KHAN/MINT
the market expected.
face of a 3% cut in world- What’s more interesting is

carrying a virus.
analysts, adding that he billion in fiscal 2009. wide technology spend, esti- the optimism the leaders of
MONEY MATTERS planned to hire up to 3,000 The estimate for the cur- mated to have crossed $1.5 these companies have ex-

administrations should keep a watch on sequenced the virus’s genome and made it
workers in coming quarters. rent year is in line with trillion in 2009. pressed in their outlook for the
GlaxoSmithKline Consumer
“This is one of the most robust Nasscom’s projected growth “This milestone confirms next few quarters.
Healthcare’s journey to be-
positive turnarounds I’ve seen of 4-7%, but shy of the $50 the value delivered by the That should bring some
come a multi-product firm
in my career,” he added. billion mark that the indus- IT-BPO industry of India to cheer to Indian software serv-
will not be easy, but in the
Cisco’s results add to a try body had estimated ear- its customers and stake- ices companies that were af-
longer run, it could benefit Your weekend lier.
from a better sales mix, planner growing body of evidence that fected by the global financial
The growth came in the TURN TO PAGE 3®
lower dependence on one From music,
category and faster growth, TURN TO PAGE 2® TURN TO PAGE 2®
movies, dance to
says Mark to Market. >P14 theatre, there's

Kerala’s experience, just in case. The Centre, public, private as well as state-employed
*** plenty to
Diversifying your portfolio experience and
into various asset classes
based on your age and risk
enjoy in your city
in the coming
Stimulus exit:
appetite and controlling
your expenses are a few
things that could help you
week. >P12-13
a gain or pain
remain debt-free. >P15 for markets?

especially, needs to stay on guard. If coordi- researchers across the world have reportedly
INDICATOR

DAV I D QUA MME N

Q3 CORPORATE RESULTS AGGREGATE
AS OF 4 FEBRUARY NET SALES

2,908 Rs8,01,858.87cr

13.5%
B Y R AVI K RISHNAN &
AGGREGATE
NET PROFIT N . S UNDARESHA
Rs71,711.95cr S UBRAMANIAN
0 4,170 ·························
46.97%

nated action needs to be taken, New Delhi will been working overtime on how to tackle it.
TOTAL COMPANIES 4,170 MUMBAI

T he Indian stock market will

take the likely rollback of
the fiscal stimulus in its stride,
thanks to robust growth in cor-
QUICK EDIT porate earnings and a steady
flow of liquidity, said six in-

A hot sun and a cold wind vestment experts

who participated

have to direct the operations. With an eruption in India, we must put our
in the Mumbai leg

T he mystic poet Khalil Gi-

bran once asked: “For
what is it to die, but to stand
Energy Council. But China at
No. 3 is catching up. It added
13 gigawatts of wind power ca-
of Mint’s four-city
event on the com-
ing Union Budget.
in the sun and melt into the pacity in 2009, thus doubling it Indian stocks
wind?” for the fifth year in a row. are likely to trade
As the world tries to fashion India does not do too badly INDIA in a tight range in
a post-carbon economy, the either. We added 1.3 gigawatts 2020 this year, in sharp
sun and the wind are more and now occupy the fifth contrast to the

Apart from evacuating citizens from Wuhan laboratories to work as well, if they haven’t
likely to be equated with life
rather than death.
And that is why the latest
numbers released this week on
installed wind energy capacity
around the world make for in-
teresting reading. The US still
leads the pack, with 35.2 giga-
watts of wind power in 2009,
place in this windy league ta-
ble with around 11 gigawatts
of capacity. Now compare that
with the government’s ambi-
tious target to set up 20 giga-
watts of solar power capacity
in India by 2022.
Wind energy has problems,
since it is tough to find places
manic volatility in 2008 and
2009, they said.
The consensus view was that
the benchmark indices are
likely to end the year plus or
minus 10% from their current
TURN TO PAGE 8®

and cancelling flights to China, the Centre has already got cracking. We may not be the worst
or 22.3% of world capacity, ac- that are windy through the ALSO SEE
cording to the Global Wind year. But this is a good start. >There won’t be much of a rollback >P8
>Not guns or butter but roads or ‘dal’ >P5
Mint is also available for Rs5.50 with Hindustan Times under a combo offer >Views: Why we need fiscal fitness >P22

suspended issuing visas to Chinese passport hit, but it’s our worry as much as anyone else’s.

MY VIEW | EX MACHINA

Prepare for a world of quantum haves and have-nots

get is clearly part of a long-term national
RAHUL MATTHAN strategy, I cannot help wonder whether it is,
at least in some small measure, a response to
Google’s recent announcement that it had
achieved “quantum supremacy”—the ability
to perform a calculation on a quantum com-
causes mistakes to occur, and unless we can vate actors with near infinite computational computers have reached a sufficiently
make them sufficiently error-free, quantum resources to decrypt messages. This is why advanced level of stability, even the highest
computing will not be commercially viable. we have the confidence to store valuable encryption known to man will be easy to
Google’s breakthrough was to achieve suffi- information in encrypted archives on the defeat.
cient control over the process to allow its cloud, secure in the knowledge that even the When that happens, cyber security as we
experimental computer to outperform a tra- largest corporations and most technologi- know it will be a thing of the past. All the

B
uried within the 13,000-odd words of
the Union Budget speech on Saturday
was a paragraph that set aside ₹8,000
crore over five years for the National Mission
on Quantum Technologies and Applica-
tions. Most commentators seem to have
either missed or overlooked this budgetary
allocation, but in terms of significance, the
puter that is impossible on a conventional
computer. And the fear that we might, once
again, be falling behind.
As much as I enjoy science, quantum
mechanics gives me a headache. Quantum
computing is an order of magnitude more
perplexing. Ordinary computers function
using binary logic gates that can be either off
ditional computer. As a result, its computer cally advanced governments don’t have the secure data services that we rely on will be
could solve in 200 seconds computational capability thrown wide open, allowing anyone with a
what would take the to decrypt these databases quantum computer to easily access the
world’s fastest supercom- Quantum and access the information information within. Given the imminence of
puter 10,000 years. stored inside. major breakthroughs in quantum comput-
We still have a long way computing will Once quantum comput- ing, it is rumoured that there is already an
to go before quantum com- ers are capable of being underground market for encrypted data in
puting becomes commer-
make much of used for decryption, the anticipation of a time when all this informa-

is a partner at Trilegal and

implications are well worth considering.
More than two years ago, the department
author of ‘Privacy 3.0: Unlocking
Our Data Driven Future’
of science and technology launched the
Quantum-Enabled Science and Technology
(QuEST) programme with an aim to develop
technical capacity within the country to
build quantum computers and communica-
tions systems comparable with the best in
the world. The first phase of the project was
to build the infrastructure and acquire
human resources to develop physical and
computation structures for improving preci-
sion in quantum measurement. The even-
tual goal is to build quantum computers
domestically.
Though the allocation in this year’s bud-
or on. This is why classical computers store
information in bits—either as a 0 or 1. On the
other hand, quantum computers can store
information as both a 0 and a 1 at the same
time using a quantum property called super-
position. This means that with two quantum
bits (or qubits), information can be stored in
four possible states of superposition, and as
more qubits are added, the computational
power grows exponentially.
While this gives us more computing
power, quantum computers are error-
prone. The quantum state is delicate. It lasts
for a fraction of a second and is easily dis-
rupted by tiniest of vibrations or variations
in temperature. This “noise” in calculations
cially viable, but there is
reason for urgency. As
what we take for computational hurdles of
prime number factoriza-
tion can be decrypted and the secrets of
famous personalities can be exposed.
soon as quantum comput-
ing becomes commercially
granted today, tion that we now rely on
will become trivial to over-
In the war for quantum supremacy, it is
those who can understand and use the fun-
viable, much of what we like encryption, come. Shor’s algorithm damental technologies behind quantum
take for granted today will already describes a process computing who will emerge dominant. In
become irrelevant. irrelevant by which quantum com- the not-so-distant future, the world will be
Take encryption, for puters could be used find divided into the quantum haves and have-
example. Almost all digital the prime factors of any nots. It is imperative that India makes every
security today is based on the RSA algorithm integer. In 2001, IBM proved that this algo- effort to stay in the game if it is to have any
that encrypts messages by relying on the fac- rithm works by using a 7 qubit computer to hope of remaining relevant. If we are to
torization of two large prime numbers. factorize the number 15 into 5 and 3. Google’s retain any measure of technological inde-
While it is easy to multiply two prime num- Sycamore processor harnessed 53 qubits in pendence, we will need to ramp up our
bers, it is very difficult to factorize them. RSA its latest experiment, demonstrating that research in quantum computing and
encryption exploits this feature, making it much higher computational capabilities are actively invest in the development of indige-
impossible for even governments and pri- already within our grasp. Once our quantum nous quantum computational capabilities.
 Telegram Channel: https://t.me/KittusWealthJourney

VIEWS WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI 15

GUEST VIEW M I N T C U R AT O R
AFP

Mirrors, windows and doors as

enablers of corporate success
Reflection, clarity of vision and a strong board of directors would serve a business better than issuing non-voting shares

ISTOCKPHOTO

An exhibit from a show on ancient footwear being held in Florence.

Back when all footwear fashion led to Rome

A s sandal season fast approaches, a new exhibit on ancient footwear at a top Ital-
ian museum seeks to remind today’s well-heeled that when it comes to fashion,
do as the Romans did. The classics are always in, as evidenced by the new show in
Florence’s Pitti Palace, which traces the humble sandal’s outsized influence in con-
temporary fashion and film, while astonishing the modern eye by the elegance of
MANISH SABHARWAL & the ancients. “At the Feet of the Gods: The art of footwear in ancient Rome, epic film
GOPAL JAIN and contemporary fashion” features 80 works from sculptures and decorative urns
are, respectively, co-founders of to sandals ancient and new, many on loan from international museums. The show
Teamlease Services and Gaja Capital —which promises to satisfy the curiosity of both shoe fetishists and wearers of plas-
tic Crocs alike—runs through 19 April.
AFP

A new way to spot high-quality blood donors

T
he most painfully learnt lesson of
growing older is that the most danger-
ous lies are the lies we tell ourselves.
This delusion, not a medical condition
but a universal human condition,
suggests that successful companies,
entrepreneurs and investors consciously surround
themselves with people, culture, and processes
that protect them from themselves. We’d like to
make the case that governance-light rules like
non-voting shares are not good for sustainable
companies, vibrant entrepreneurship, and legiti-
mate capital markets.
To paraphrase Nigerian writer Ben Okri, entre-
preneurs are re-organizers of accepted reality,
dreamers of alternate histories, and disturbers of
deceitful sleep. This needs a strong vision, dollops
of self-confidence and relentless optimism. All
these complicate the entrepreneur-investor rela-
tionship; both want a sustainable, scalable, and
valuable company, yet different time horizons can
create differing views of goals and strategy. When is
self-confidence stubbornness? Is the job of inves-
tors just to provide capital and stay out of the way?
Are they friends or allies? What is the difference
between investors and board members being back-
seat drivers and coaches? The Uber board clearly
failed at protecting Travis Kalanick from himself
(wonderfully chronicled in the book Super Pumped
by Mike Isaac). WeWork investors and board mem-
bers’ negligence in reining in Adam Neumann early
meant abandoning an IPO valuation of $47 billion
for a private round valuation of $7 billion (that
required a $1.2 billion pay-off to the entrepreneur).
Closer home, many large Indian companies in
bankruptcy had board members who did not stop
entrepreneurs from borrowing their equity, mind-
lessly diversifying, and confusing liquidity with
solvency. However, the Tesla board navigated
multiple life-threatening situations—declarations
of going private, US Securities and Exchange Com-
mission (SEC) violations, executive churn, delivery
delays, silly tweets—by separating the CEO and
board chair role that helped Elon Musk’s company
cross $100 billion in market capitalization.
Indian banking demonstrates that regulation is
a poor substitute for governance. Public sector
undertakings (PSU) banks’ powerful shareholders
make boards and CEOs weak, while powerful
CEOs at some private banks make boards and
shareholders weak. However, regulation matters
and the recent decision to allow Indian companies
to issue non-voting shares is a backward move. The
rationale of preventing short-term thinking and
protection from foreign control doesn’t stand up to
the evidence. The first three companies to reach a
trillion-dollar market cap—Apple, Amazon and
Microsoft—and 90% of the 1500 S&P broad index
companies follow one share, one vote. Many of our
successful companies in technology and financial
services—insurgents not incumbents—may not
have been built without foreign capital with fair
equity dilution and voting. Our research suggests
that market capitalization-weighted stock market
returns for Indian investors over the last decade
have largely come from companies with promoter
shareholding much lower than the Indian stock
market average of 50%.
The book Willful Blindness by Margaret Heffer-
man suggests entrepreneurs can’t notice and
know everything; the cognitive limits of our brains
simply won’t let us. So we filter, edit, and leave out
obvious challenges that unsettle our egos, threaten
our safety, create conflict, breed anxiety and
diminish prestige. However, she suggests entre-
preneurs can make better decisions by challenging
biases, encouraging debates, asking new ques-
tions, discouraging conformity and not backing
away from difficult problems. The disproportion-
ate power granted to founders from non-voting
shares will encourage wilful blindness by sabotag-
ing the renewal, cognitive diversity, and question-
ing that comes from effective governance.
There are exceptions, but companies that sus-
tainably create value for shareholders, employees,
lenders and communities volunteer for effective
governance. Companies are no different from
countries; every large country with a per capita
income of more than $30,000 is a democracy with
a constitution that balances the rights and duties of
the executive, legislature, judiciary and citizens.
Prime ministers are constrained by constitutions;
dictators are not. 19th-century scholar Walter
Bagehot suggested that all constitutions have a
dignified and efficient part; the dignified part is
one that excites and preserves the reverence of
people, while the efficient parts of it are the rules
and institutions that make for governance. A clear
separation between the two is meaningless and not
possible. This is no different for corporate govern-
ance; regulations iteratively attempt to strike the
right balance among stakeholders, but the art lies
in the softer aspects of board effectiveness, corpo-
rate listening and cognitive diversity.
The most thoughtful entrepreneurs recognize
the wisdom of educator Rudine Bishop’s metaphor
of mirrors, windows and doors; an honest reflec-
tion that creates effective strategy and leads to
decisive action. Mirrors are investors and board
members who speak up and prevent wilful blind-
ness; governance is an insurance policy. Windows
are the clearest and most forward-looking view
that often requires partitioning the roles of share-
holders, board members and the CEO. Doors are
actions that deliver the next quarter and quarter-
century. New policies around corporate govern-
ance (independent director exams, chairman
and CEO blood group tests, non-voting shares)
prioritize the accounting of governance (did you
follow rules and process?) over the account of gov-
ernance (did you do the right thing?). Non-voting
shares will not deepen corporate democracy,
empower meritocracies or spread fairness. Policy-
making can, and should, drive change. However, a
$5 trillion economy with vibrant public and private
capital markets needs corporate governance that is
as much voluntary art as mandatory science.
R esearchers have developed a new device which can identify high-quality blood
donors, an advance which may benefit millions of patients who need blood
transfusions every year globally. According to the study, published in the journal
Lab On A Chip, the device can recognize individuals whose red blood cells stay via-
ble for longer in storage and in the recipient’s body. “We know that the deformabil-
ity of red blood cells, or their ability to squeeze through small constrictions, is an
important factor in the longevity of these cells in recipients of blood transfusions,”
explained study co-author Hongshen Ma from the University of British Columbia
in Canada. “This is because cells that remain deformable longer can stay in circula-
tion longer. But until now we didn’t have a reliable way to measure this capability
in donated red blood cells,” Ma said.
PTI
Why vegans arouse such negative emotions
A s the popularity of vegan life continues to gather pace, a tide of vitriol has risen.
To eat meat, or not to eat meat: the question has become a battleground...
Given that most of us would probably like to see less suffering in the world, why is
there such resentment towards those who do something about it? ...Popular argu-
ments include the perception of vegans as over-smug—as the joke goes, “How do
you recognise a vegan at a dinner party? Don’t worry! They’ll tell you!” ...The wide-
spread resentment we have for vegans is down to deep-seated psychological biases.
The dominance of meat eating around the world helps the omnivores among us
to avoid the idea that it’s a choice... By their mere existence, vegans force people
to confront their cognitive dissonance. And this makes people angry.
BBC
Here’s how to plot a 70th anniversary cruise
A North Carolina couple said they will be able to celebrate their 70th wedding
anniversary by going on a cruise thanks to a $768,862 lottery jackpot. James
and Maxine Hilliker of Lumberton told North Carolina Education Lottery officials
they visit the Sun-Do Kwik Shop store in Lumberton together every Tuesday to play
Cash 5. “We go to the same store every Tuesday,” Maxine Hilliker said. “We always
play the same numbers. I’ve been playing them for over 22 years in California, Flor-
ida and now North Carolina. We use my birthday, my husband’s birthday, and the
birthdays of my three sisters. We’ve never won anything big.”... The couple said the
money came at what was already a time of celebration. “Our wedding anniversary
is next week and today is my 90th birthday,” James Hilliker said...
United Press International
Will kids come to wonder if glowbugs existed?
F ireflies are in deep trouble, with many species facing extinction due to habitat
loss and exposure to pesticides, according to the first major review of their
global status, published Monday. Adding irony to injury, one of Nature’s most
entrancing spectacles is also being snuffed out by artificial light pollution, research-
ers reported in the journal BioScience. More than 2,000 species of fireflies—which
are, in fact, beetles—illuminate wetlands, marshes, grasslands, forests and urban
parks worldwide. A few, such as the Big Dipper in the US, seem to be flourishing...
But other varieties—from the glowworms of southern England to Malaysia’s syn-
chronous fireflies and the Appalachian blue ghost, both of which draw tourists—are
being extinguished by humanity’s ever-expanding ecological footprint.
AFP

GUEST VIEW

Seven key reasons for RBI not to shift its policy stance
stance to neutral. It is evident that RBI will
KAUSHIK DAS have to increase its quarterly inflation fore-
cast once again this month, though the
upward revisions made in its December pol-
icy were quite substantial. While it is certain
that food inflation, particularly related to
pressure on market interest rates.
A large negative output gap and financial
market vulnerabilities point towards the
need to persevere with an accommodative
stance. India’s actual output is estimated to
be more than 2 percentage points below its
could offset the reduction in bond yields
achieved through RBI’s version of “Opera-
tion Twist”. On 19 December 2019, RBI had
first announced its decision to conduct mar-
ket operations involving the purchase of
long-dated bonds and the simultaneous sell-
would likely have risen further in the latest
RBI survey, reflecting higher food prices,
but will fall once food inflation eases. There
is no need for RBI to react mechanically to
the latest data and shift its stance. Food infla-
tion, expected to peak in the first quarter of

G
iven the recent sharp increase in
retail inflation, markets seem to be
worried about the potential reaction
of the Monetary Policy Committee (MPC) of
the Reserve Bank of India (RBI), particularly
its stance on monetary policy. Some market
participants have started considering the
possibility that the MPC could change its
vegetable prices, cannot sustain at these lev-
els and a course correction is overdue, it is
difficult to predict how quickly and how
sharp the reversal is likely to be over the next
few months. The April policy would be an
appropriate time for the MPC to consider
whether to change its stance or not, based on
the evolving growth-inflation trend till then.
potential at this stage, with a growth recov- ing of short-maturity securities, thereby 2020, will probably go on a downtrend
ery expected to be shallow, both lowering yields at the thereafter and household worries of food
given the ongoing prob- long end, with bond prices prices increasing will also ease with a lag,
lems in the credit market Food inflation pushed up by its buying, given the strong correlation between the
and the general risk aver- and pushing up yields at two variables.
sion that persists in the may be a blip the short end, with bond Another reason that the MPC should not
economy. Against this prices dipping on account hurry to change its stance to neutral is that
backdrop, one would not
while a nascent of its sales. This was based wholesale inflation for manufactured goods

is chief economist, India,

stance from accommodative to neutral in its
6 February policy, citing discomfort with the
Deutsche Bank latest inflation figure. While this possibility
cannot be ruled out, there are several rea-
sons why switching to a neutral stance
would be premature.
A neutral monetary policy stance at this
stage may not be appropriate, as the govern-
ment has little space on the fiscal front to
support growth. The primary risk to the
Indian economy is still biased towards a pro-
longed growth slowdown, rather than a
structural move upwards in consumer price
inflation.
The MPC should wait for more evidence
on food price trends before shifting its
An early shift in stance to neutral may
result in the fear of potential rate hikes in the
near future. The central bank had provided
a guidance of keeping “rates lower for
longer” as early as in October 2019 and,
therefore, changing its stance in a span of
just four months may prove to be too hasty.
It would imply that the MPC could also con-
sider hiking rates at some later stage, instead
of the other two alternatives of maintaining
a status quo or easing rates further. Given
the current uncertainty over the near-term
inflation outlook, markets might start plac-
ing greater weight in their estimations on
the central bank considering a rate hike,
rather than a cut, thereby leading to upward
expect core inflation, cal-
culated without volatile
growth recovery
fuel and food prices, to
pose a material threat to
could be set
overall inflation. India back by rate
needs a lower cost of capi-
tal to provide stability to hike fears
the economy and incentiv-
ize fresh investments and
consumption growth. A premature change
of stance to neutral, by opening up the possi-
bility of higher interest rates in the quarters
ahead, might result in a slower-than-antici-
pated growth recovery.
A premature neutral stance, with its
potential to drive market yields higher,
“on a review of the current
liquidity and market situa-
tion and an assessment of
the evolving financial con-
ditions”. The action has
helped reduce pressure on
longer duration bonds to
an extent, without which
yields would have surely
been higher. However, a neutral stance
could neutralize the effect. As it is, the trans-
mission of previous RBI rate cuts remains
incomplete and a change in stance to neutral
could delay or stop any incremental easing
of lending rates.
The inflation expectations of households
and core wholesale price inflation are still in
negative territory. According to the whole-
sale price index (WPI), manufactured goods
inflation was at -0.3% year-on-year, while
core WPI inflation was at -1.5%, with food
items excluded. These figures indicate an
acute weakness in the manufacturing sector.
When RBI used to follow WPI inflation for
its monetary policy, the aim was to keep core
WPI inflation around the 4% mark, though
there was no official targeting. Today, the
MPC’s mandate is to target headline con-
sumer price inflation, but members of the
panel ought to consider the distress in
India’s manufacturing sector before making
any change to the policy stance.
 Telegram Channel: https://t.me/KittusWealthJourney

16 WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI POLICY

Removal of anti-dumping duty

on PTA may hit RIL, IOC margins
For PTA producers, the move could cut margins of about $120 per tonne by 20%, say industry experts
Kalpana Pathak growing across various end-use
kalpana.p@livemint.com industries such as food and bever- Expenditure secretary T.V. Somanathan had the tough task of
MUMBAI ages, electronics, apparel, home allocating resources in the Union budget. RAMESH PATHANIA/MINT
textiles, carpets, and industrial

P ‘Our aim has been to

urified terephthalic fibre.
acid (PTA) producers, According to industry officials, Bhutan
makes
including Reliance this move will help further the Indians pay
Industries Ltd (RIL) and ministry of textiles’ vision to
Indian Oil Corp. Ltd
(IOC), could see their margins
increase the textile business size
from the current level of around
‘sustainable
developmen
t fee’ spend without being
narrow as the government has $169 billion to $350 billion by bit.ly/3bdmjMi
abolished anti-dumping duty on
the chemical—a raw material
used in the production of polyes-
2025 and to $650 billion by 2030.
Over the past six months, new
capacities of five-six million ton-
fiscally imprudent’
ter staple fibre and filaments. nes were added in China, which
“PTA is a critical input for tex- has pulled down the spread Asit Ranjan Mishra to have saved big money
tile fibres and yarns, and its easy between paraxylene and PTA to asit.m@livemint.com through the use of the Gov-
availability at competitive prices $120-150 per tonne. NEW DELHI ernment e-Marketplace, or
is desirable to unlock immense A spread is the difference GEM, platform and the

I
potential in the textile sector, between the price of a raw mate- ndia’s expenditure secretary Direct Benefit Transfer sys-
which is a significant employ- rial and the price of a finished T.V. Somanathan, a 1987 tem. Why are those num-
ment generator,” finance minis- product created from it. batch civil servant, had the bers not reflected in the
ter Nirmala Sitharaman had said China is a very big player with tough task of allocating resour- budget documents?
while announcing the budget. huge upstream and downstream ces in the budget under the pull The numbers have not spe-
The textile industry has been PTA capacities, which added to and pressure of various central cifically been given in the bud-
demanding the removal of the the pressure on PTA margins. government ministries. In this get because those numbers are
anti-dumping duty imposed on PTA is a critical raw material used in the production of polyester staple fibre and filaments. PRADEEP GAUR/MINT “With the anti-dumping duty interview, Somanathan estimates based on prices paid
PTA to reduce the production abolished, we assume the effec- explains the rationale behind through GEM and prices paid
cost and enhance global competi- and also enable the domestic pro- PTA imported from China, Iran, “For PTA producers, the elimi- tive spread earned by a company the budget allocations. Edited outside GEM. They are not
tiveness. ducers to compete with cheaper Indonesia, Malaysia, Taiwan, nation of anti-dumping duty will be lower. Domestic capacity excerpts: reflected in the budget, but
“This announcement is a boost imports. Korea and Thailand. Depending would cut the current margin of for PTA would be closer to about While the central govern- those are very credible esti-
for PTA users and the about $120 per tonne by 6 million tonnes. And with RIL ment has used an escape mates. Similarly on DBT,
entire man-made fibre CHEAPER IMPORTS about 20%,” said K. Ravi- enhancing capacity in a big way, it clause to expand its fiscal reduction in the revised esti-
textiles and clothing seg- chandran, senior vice could be impacted significantly,” deficit, don’t mates of
ment,” said the Southern THE anti-dumping MOVE will help the RIL is the biggest PTA WITH the duty president and group said an analyst tracking RIL, you think m INTERVIEW PM-Kisan itself is a
India Mills’ Association duty, imposed in July textile business size
2016 and July 2019,
producer in India,
to grow from current with a domestic
abolished, effective
spread earned by a
head (corporate ratings) requesting anonymity. states should testimony and
chairman Ashwin Chan- has been revoked on $169 billion to capacity of 4.4 mn firm will be lower, at Icra Ltd. RIL is the biggest PTA pro- have similar success of Aad-
dran. PTA imports $350 billion by 2025 tonnes per annum thus hitting margins RIL and IOC did not ducer in the country, with a options to bor- ‘PM-Kisan revised haar-based identi-
The removal of the respond to email queries domestic capacity of 4.4 million row more from estimates is due fication of benefi-
anti-dumping duty, till press time. tonnes per annum. the market to to de-duplication ciaries, because
according to Chandran, would The anti-dumping duty, on the country of origin, anti- Owing to its properties such as On Tuesday, RIL’s shares rose support the and a smaller original estimates
help India enhance its global imposed in July 2016 and July dumping duty on PTA ranged weathering resistance, strength 2.89% to ₹1,425.85 on BSE, while growth efforts were based on
number of multiple data
competitiveness, boost exports 2019, has now been revoked on between $27 and $160 per tonne. and flexibility, PTA’s usage is IOC surged 5.37% to ₹113.85. of the Centre?
The FRBM beneficiaries bases in the states,
laws of the state than estimated.’ saying that there
are different from are so many peo-
the FRBM law at ple. But when the
the Centre. This is an issue actual distribution was done

Every big transaction Govt can soon ban import, export of any item which we have not considered. with Aadhaar authentication, a
The finance commission will lot of de-duplication took place.
have to give its input on that. To So, are you saying it’s not

you make, taxman FROM PAGE 1

the best of my knowledge, they under-utilization
have not made any recommen- PM-Kisan rather de-dupli-
dation to that effect in their cation why the revised esti-
of

130 anti-dumping/counter- interim report. We go by the mates in FY20 is less than

will be watching you vailing duty/safeguard cases to
deal with rising incidence of
unfair trade practices.
content of the Act. Problem is the budget estimates?
we are all borrowing from the PM-Kisan revised estimates
same pool of funds. Adding reduction is partly due to
PRADEEP GAUR/MINT The domestic market for another 0.5% will be a pressure de-duplication and partly
FROM PAGE 1 solar components, for on the bond market and there because the number of benefi-
instance, is dominated by Chi- will be crowding out effects. It ciaries have been smaller than
“It is totally non-intrusive and nese companies due to their is something that I am not able estimated.
absolutely non-adversarial. It competitive pricing. The surge to pronounce on at this Do you mean to say without
is a subtle persuasion,” said the in imports led the Modi moment. savings on GEM and DBT,
chairman, adding that it was administration in its previous Don’t you think reducing fiscal deficit would have
akin to telling taxpayers that term to impose a safeguard expenditure in FY20 com- been much higher in FY20?
the authorities are aware of the duty from 30 July 2018 on pared to BE is counter-pro- DBT savings happened
value transactions made by solar cells and modules ductive, because we are try- across the board. Fiscal deficit
them, which should get imported from China and The measures are aimed at narrowing the trade deficit with China. BLOOMBERG ing to push for growth in the would have been higher with-
reflected in their tax returns. Malaysia. This will end in July next fiscal year? out the DBT scheme. GEM’s
At present, the department this year. tic manufacturing capacity of power generation equipment solar modules that are Our aim has been to maxi- savings are usually deployed on
collects information about The Union budget also 3 gigawatts (GW) for solar cells makers who want to do busi- approved by the Bureau of mize the expenditure subject to more expenditure of produc-
certain high-value transac- approved an enabling mecha- and imported ness in the Indian Standards and the min- not being fiscally imprudent. tive nature. If I buy things
tions which along with details Having multiple slabs suggests nism to raise tariffs on imports $2.16 billion So far, the world’s largest istry of new and renewable These are limits that we were cheaper, does not mean I sur-
of tax deducted and collected that the tax system is more of green energy equipment worth of solar government had green energy energy, and are on the able to attend without crossing render the money. I buy more
at source in the case of individ- progressive, said Mody. such as solar cells and mod- photovoltaic (PV) powers to only market. approved list of modules and the limits that we would con- of those things. I get more value
uals is available for viewing in ules. cells, panels, and ban imports and The step is manufacturers will be eligible sider to be imprudent and cre- for money, it does not necessa-
the tax department’s portal in flight of persons to other coun- Once a separate notification modules in aimed at boosting for government supported ate long-term problems. It may rily have a budgetary impact.
exports of gold have been desirable in the short Does the government con-
the form 26 AS statement. The tries. Besides, we are offering is issued, a new duty structure 2018-19. domestic manu- schemes, including projects
information collected for this more services and conve- enabling a basic customs duty The budget and silver under facturing and from where electricity distri- term, but it would have created sider the expenditure on the
includes savings bank depos- nience. We are offering a tax- (BCD) of 20% on cells and move comes the Customs Act shielding domes- bution companies procure long-term issues. We are trying Mahatma Gandhi National
its, credit card bill payments payer charter,” he said. Taxa- modules will come into effect. against the back- tic companies solar power for supplying to to make sure that we don’t do Rural Employment Guar-
and investments in instru- tion of dividend in the hands of There is no BCD levied on drop of a non-tar- from cheap and their consumers, Mint something that is bad in the antee Scheme wasteful and
ments like mutual funds above shareholders and limiting the such equipment now. iff barrier that involves a certi- sub-standard imports. reported on 15 December. long run. unproductive?
a specified threshold. Mody tax-free contribution of India currently has a domes- fication requisite for all solar Only manufacturers and utpal.b@livemint.com The government is claiming No.
said that scaling up informa- employers to the retirement
tion gathering will also enable savings of employees had dis-
the department to offer pre- pleased many high-income
filled returns of income. “We earners. The Narendra Modi
are looking at (enhancing) tax administration has shown an
collections as well as offering inclination to increase the tax
tax payer ser-
vice,” he said.
Mody rejected
The CBDT chief
on the well-off to
raise resources
for welfare meas-
Quantum computing outlay can bolster space, defence R&D
said scaling up
criticism that information ures. Last year,
increasing the the government Abhijit Ahaskar “The fact that India’s alloca- rosoft taking quantum com- hakar, professor, department
gathering will
number of slabs
enable I-T dept to increased the sur- tion for quantum research is puting to the cloud, have made of electrical engineering,
abhijit.a@livemint.com
in the proposed charge on income NEW DELHI close to what some of the larger the world realise the possibili- Indian Institute of Technology,
lower personal offer pre-filled in two slabs. economies like the US are plan- ties it can offer. Madras.
t a x returns of income Accordingly, a

T
income he budget proposal to ning to spend, reflects a serious Governments the world over “The quantum science and
scheme compli- person earning earmark ₹8,000 crore effort on the government’s are starting to grasp the poten- technology initiative in India
cates the tax more than ₹5 for quantum computing part,” said Vishal Malhotra, tax tial of the technology. China has been broadly defined
structure. He said having mul- crore annually has to pay over the next five years can partner, Ernst and Young (EY). already has a national strategy around computing, communi-
tiple slabs suggests that the tax 42.74% on the income exceed- boost critical areas of the Indian Quantum computers will on quantum com- cations, and
system is more progressive. ing ₹5 crore. economy, including space open up enormous opportuni- puting, having As no private firm measurements.
Mody also rejected fears Another budget proposal research and defence capabili- ties for India, particularly in the spent $400 mil- in India works Of these, quan-
that certain steps proposed in aimed at checking abuse of ties. However, the impact will field of defence, space research, lion on a national on quantum tum computing is
the budget—introducing a certain tax provisions was to only be felt over the long term, weather forecasting, and quantum lab and computing, the expected to pro-
monetary limit for tax-free modify the concept of resi- industry officials said. healthcare by crunching large filing twice as
initiative will have vide the ability to
contribution by employers to dence, which raised fears of The quantum of money pro- amounts of data and solving many patents as solve hitherto
the retirement savings of global income of NRIs work- posed for the sector is almost problems infinitely faster than the US on quan- to be led by intractable prob-
employees and taxation of div- ing in countries like the UAE, on a par with the amount existing supercomputers. Goo- tum technology. state-run entities lems in resource
idend in the hands of share- where there is no income tax invested by the US to develop gle’s 54-bit quantum computer The quantum of money proposed in the budget is almost on a par The US govern- optimisation,
holders—could alienate high liability, might be taxed the technology. took merely 200 seconds for an with the amount US invests to develop the technology. ISTOCKPHOTO ment had also machine learn-
income earners. “For us, every in India. The finance minis- However, the success of the experimental computation that announced a National Quan- ing, and data security, and also
taxpayer is important. We try clarified that only the India initiative will depend on careful a supercomputer would have corporations. It should boost analytics firm. tum Initiative in 2019 with an help us design new materials
have adopted the classical sys- income of such people will be planning and implementation. taken 10,000 years to solve. attempts of domestic technol- The recent advancements in outlay of $1.2 billion (₹8,500 with futuristic applications,”
tem of taxation. Dividend is taxed.Mody said that the Moreover, considering that “The announcement is sig- ogy providers, who have been the field of quantum comput- crore). Prabhakar said.
taxed in the hands of the recip- department has to balance there are no private companies nificant as the scale of invest- keen to enter this field, but did ing, including IBM’s unveiling The recent announcement However, we are 5-10 years
ient. As far as personal income revenue considerations and in India working on quantum ments necessary to make head- not have the necessary scale or of the world’s first quantum by the finance minister is a sig- away from seeing quantum
tax rate is concerned, India is recommendations from stake computing, the initiative, by way in quantum computing is resources,” said Nishant Singh, computing system for scientific nificant development for the computing being used to solve
comparable to other coun- holders while framing budget and large, will have to be led by not possible without the sup- head of technology and tele- and commercial use, Google’s scientific and industrial com- real-world problems., accord-
tries. So, there is no concern of proposals. state-run institutions. port of the government or large com data, GlobalData, a data quantum supremacy, and Mic- munity of India, said Anil Prab- ing to experts.

PROPERTY
NORTH DELHI
SHASTRI NAGAR, 65 sq.yards,
Block-B, Clear Title, Independent
Three Storey Bungalow for
Immediate Sale. Broker Welcome.
D. Salwan: 9810034566
ROHINI 1981 Allotment Scheme.
Zeqon Buildtech (P) Ltd. Best Deals
for your Plots/ Expert Liasioning
(Mutation /Possession/ Lease
/F'Hold) 9718888224 / 9891272828
CIVIL LINES, Ground Floor Aptt,
6 Bedroom, Big lawn, Corner, Ample
parking, Gated locality, Prime Loca-
tion, Needs renovation, Exclusively
Mandated with us # 9999483824
PRE RENTED Commercial basement,
4000 Sqft available For Sale on Main
Bunglow Road Kamla Nagar, Demand
@ 4.75 Cr. / Rent 2.5 lakhs per month.
Contact : 9718414443
PRIYADARSHANI APART-
MENT Drawing + 3 Bed + 2 Toilet
+ 2 Side + Parking, 20 Lac, Sec-31,
Rohini. Bisht Properties Pvt. Ltd.
9650045100, 9999784468
RENTED PROPERTY- Axis Bank
2.45L. IOB 3.0L. Samsung 3.8L. HDFC
3.5L. Bikaner 4.2 L. Multiplex 11.45L.
Motel 18.0L. 9810327243,
9582262519
250YDS NE Corner 4 BHK all Floors
Tagore Park. Nicely built Kothi 282
yds Model Town. Also 100/160/200
/272 yds & 3000 ft Flats Old & New
many options. Neelam 9873255806
140-4000YDS VALUE for
Money Flats & Villas Civil Lines / BD
Estate. Deals Family Settlement
Deals / Constructions & Pre-Rented
Deals. Neelam 9873255806
EAST DELHI
HARGOBIND ENCLAVE 208 Sq
Yd, Top Flr With Terrace East Facing, SHANTI NKTN, F'hold, corner 2 adj SANT NAGAR East of Kailash 2
2 Side open lift+Parking, Servant Qtr
@3.25 Cr. & more properties in East
Delhi. Kohli Associates 9811064470
GANESH NAGAR Property at
Prime Location near Pandav Nagar
Delhi-92, 150 sq. yd, 2 side open,
30 ft wide Road, near 100 ft Main
Road for Sale. Call: 9560333596.
SALE KOTHI 233sqyds renovated
Ramprastha Gzbd, Ist owner, Janta
flat Brij Vihar 20L & 2 shops Jt 50L &
one shop 20L Nego in Savita Vihar
market, Delhi Agent 8860455897.
FLOORS, KOTHIES, Shops, Offic-
es in Preet, Surajmal, Vivek, Yojna,
Rishabh, Anand Vihar, Hargobind,
Madhuban, Ramprastha, Pushpan-
jali. Sanju Anand # 9810035490.
APPROVED NURSING Home
Square, corner Plot 500M, for sale
in Sector-3, Vaishali Ghaziabad. GDA
Approved, East/Park Facing Near
Metro Station. Wadhwa 9810038248
FOR SALE : first floor, two flats joda
or separately, vandana apartments
patparganj, 3bhk store 1260 sft each.
1.25 cr. each negotiable. only serious
buyers contact 9811243370
WEST DELHI
FOR SALE 280 sqyd Kothi & Builder
Flrs 280,360,550, GF & FF with Stilt
Parking & Lift. 7 Star Const. in
W. Punjabi Bagh. H.G Plaza Prop.
Hari Om 9811514866, 9811514744
RAJOURI GDN. 500sq.yd. 2 side
8yr old 3rd flr well built & renovated
roof right, lift, pkg sapce 2cars, 4BR,
4WR, D/D, lobby ,servant room,
Mod. kitchen, park fac# 9716510808
PUNJABI BAGH West, Plot Area
280 sq.yds, East Facing Double
Storey House on road no. 62.
Immediate Sale. Broker Welcome. D.
Salwan: 9810034566, 9910034566
PUNJABI BAGH Avail 200yd third
floor with terce@2.25,120yd top flr
terce corner park@1.45,550yd ff
@5.5,280yd ff @3cr .. KHURANA
ASSOCIATES # 9891001696
WEST DELHI
RAJOURI GARDEN flrs kothi lift
prkg 160y crnr 1st, 2nd 1.70ech, old
200 y 4bhk 3rd ter 1.75c 200y 3 side
1st flr 530y 3rd tr crn 4cr 300y 3side
crn duplex wid lift 12cr 7999998789
DWARKA
3BHK+ STUDY + Pooja Room
(1500 Sq.ft) on 7th Floor in Co-op.
Group Housing Society (Furnished)
in Sector-1A Dwarka Delhi for
Immediate Sale. Call: 9871174498.
PLOT FOR sale in Dwarka
80 Sq. Yds. Sector 23B, pkt-10.
Genuine User only. Contact :
9873277058
URG SALE Ready to Move in 4bhk
F.hold, Apt. in Exllnt. Located so-
ciety, Sec-12, Dwarka, Facing Main
road, Metro, Reddison htl, CCTV +
Cvd Parking, Qlty Intrs. 9773845651
CENTRAL DELHI
SAFEST INVESTMENT Leased to
Japanese Co. Rent 1.75L, Petronet
Rent 8.45L, Grasim Rent 77K, Indian
Oil Rent 1.18L, Lock in 3 to 5 years.
Call: 9873340866, 43004300
RAJENDRA PLACE office 625,770
,1250 sqft. Pusa Rd 2200-3500 sft.
East Patel Nagar 200yd Kothi for
Sale. Rani Jhansi Rd Comm. 375 sq.
yds built up 8000sft. 9811024280.
SALE/ RENT Vacant Office Space
Hansalaya Building Barakhamba
Road 9th Floor 940+1060 sq ft Also;
Ansal Bhawan KG Marg 3rd Floor
1043 sq ft. Sanjay Malik 9810039071
WANTED/ AVAILABLE rented
vacant offices outright purchase in
Connaught Place with good returns
in Multi-storey Building. Call
S B Arora:- 9810054005.
SOUTH DELHI
ANAND NIKETAN, 240 sq.yds.
North Fac, SF, 3 Beds D/D with Terr.
@4 cr. also 200 sq.yds. Park Fac, GF,
3 Beds D/D@4.75 cr. Immediate Sale
Salwan: 9810062871, 9810063891
FARM HOUSE: 1 Acre, 2.5, 5 &
Above. 1000,2000Yds at Westend
green,vasant kunj, sultanpur, ga-
daipur,DLF chattarpur,dera ma-
ndi. Ravi Bhatnagar 9810081507
shops merged, carpet area 250 sq.ft,
height 12ft,water,sewage connection
signage 12' x 4'. Immd Sale. Broker
Welcome. D. Salwan: 9810034566
VASANT VIHAR 400 sq.yds. GF,
4 Beds D/D & B'ment also 600 sq.
yds. GF, 4 Beds D/D & B'ment, Stilt
Prkng. Immediate Sale. Salwan Real
Estate: 9810062871, 9810063891
VASANT KUNJ Nangal Dewat
4BHK Luxury Flrs 2200sft. 2Car Park
each,New Constr,Safe Neighborhood
of Bureaucrats & Prof, With Clean
Title & CC, All Cheque #9873340866
LAJPAT NAGAR-II 200 yds,corner
Park/North facing, Brand New 2nd
Floor 3 Beds, D/D, Lift, 2 Car Parking
Air-conditioned Kitchen, CC, Top of
the Line Const. Owner 9810139604
SAFDARJANG ENCLAVE 300 sq.
yds. Ground Floor, 4 Beds D/D also
200 sq.yds. 3rd Flr, 3 Beds D/D with
Terrace, Stilt Parking. Salwan Real
Estate: 9810062871, 9800010211
FARMHOUSE/ MINI Farmhouses
/ Plots in Chattarpur DLF, Ansal
Satbari, Jonapur, Deramandi,
Vasant Kunj, Delhi Registry. Contact
# 9811004258 & 9999458324.
EAST OF Kailash -370 Yards,
125 Yards , 160 Yards , 180 Yards,
150 Yards-Near to Metro-Park
Facing-For more details :
Link Properties 9810823177
Telegram Channel: https://t.me/KittusWealthJourney
SOUTH DELHI
SOAMI NAGAR, TF+Terr,300, 3BR,
New,Stilt/lift/SQ, front & Rear Green
Belt, Top locn. GK-1, 300, Bsmnt+
Grnd (Dup), New, 4BR, Prk fac, Best
price. Kunal Gupta 9999022944
CR PARK 125 Sq.Yds Free Hold
Kothi Provision for 4th Floor + Lift
& 3 Parking. Suits Self Occupier.
@ 5.50 Fixed, Brokers Excuse.
Contact 9810100364
FLRS : P'Shil Prk 600y FF@7.5; Gul-
mohar 300 FF 6.30; Green Park Ext
465y SF@7cr; Niti Bagh 500 SF 9cr;
P'Shil 311 TF+T 6.75; Anand Lok 400
P/F SF &TF 10cr. SR 9999996725
JOR BAGH, 375 sq.yards, Park
Facing, Clear title Two and a
half storey Bungalow for Sale.
Confirmed Deal. Contact D. Salwan:
9810034566
SALE HOUSES : Golf Links 375, SDA
500Yd, Shanti Niketan 600Yd, GK-1,
500 Yds & 1000 Yds, Livable, Park
N/E, Excellent Construction. Desraj
98110-72035, S. Kumar 98110-31558
SAFDARJUNG ENCLAVE Kothi
400 yds. D/S 8 Bedrooms, DD, 2 Car
Parking Inside, S/E facing, Park
Facing. Well Maintained, Suits User.
Contact: Ajay 9810013809
BOOKING : V.Vhr 600 P/F FF/SF &
TF +T@13 &15; Gulmohar 500/300
P/F; S.Ex - II, 300;GK 500/300; EOK
240 Cnr wide rd P/F;Anand Lok 400;
P'Shil Enc 260 P/F. SR 9999996725
OKHLA & Mohan Co-oprtve -Ware-
house 60,000sqft GF +1st Flr 16 ft
height, 400, 1200 Sqyd Factory/Bldg
/Off. space RCC or shed avail for sale
/Rent# 7982306104, 9810058453.
ALAKNANDA Gangotri Enclave
DDA-SFS Flat,Freehold Ground Floor
3 BHK, Ample Parking, Peaceful Lo-
cation, Reasonable Price. For more
details call Dinesh: 9810611176
EAST OF Kailash E- Block - 400
Sq.Yds Kothi , Park Facing , Corner.
Also Brand New Floors 125/200/
300/500 Sq.Yds.
Atharv Dhawan 9811707061
EXCL. FLOOR : Hauz Khas Enclave
500y S.Flr, Lift, Parking, Wide Rd
@5.50; Panchsheel Encl 265y Corner
3rd Flr+Tr, Best Location. Floor
Heights 9013000630, 9310020334
GAUTAM APARTMENTS, Gul-
mohar Park,SFS Freehold, GF, 3BHK,
3 Bath, U/G water tank, all redone,
marble floor. reserved parking, park
facing. Cont: Rakesh ji 9810078614.
DEF COL. 325yd P/FF @6.5; FF @
5.50; Def. Col. 217yd FF @3.65; East
of Kailash 400yd P/F @6.25; Mahar-
ani Bagh 500yd 3 side corner B/N
@6.90; #9811311376, 8920931334
Bedroom Drawing-Dining, Ground
Floor, Fully Renovated Price-70
Lakh Contact :-Rattan Jha
9810381356, 9810265234
FLRS : Vasant Vihar 600y FF 13.5cr &
1000y FF 16cr; Shanti Nktn 630y SF
15 cr; Jor Bagh 375y TF+Terr. @17cr;
Westend 800 Bmt+GF @22cr; GK-I,
1000y FF@18cr. SR 9999996796
KOTLA MUBARAKPUR Shop
200 Sqyds Suits for Wholesale/
Retail Plastic/ Disposable Dept.
Store/Restaurant etc. Flat 3Flr 3BHK
200 Sqyds Owner # 9810008917.
NEW FRIENDS Colony 500
Ground 4BR, big D/D, Modular
kitchen, excl. Driveway for 5 cars,
Vastu Perfect, lift, Also 3rd +
Terrace. Sandeep 9810173551
VASANT VIHAR Corner, 2BHK
Ground & First each, 2car parking
1300 sq ft each. Price on request,
Bagga Estate 9810274442,
9871333883, 26140162
DISTRESS FLRS M Bgh 500TF+terr
7.50,NFC 500 P/F GF 5.75, NFC 500
FF, Crn. 4.25, GK 300GF 4.50, P'shil
3br GR 3.75,SF 4br 5.50,Sukhdev Vhr
500 GF 4.25,SF 4br 3.75. 9810173551
KOTHI IN Saket, D-Block, 300yds
@13.20Cr Also Shivalik, 200yds, 2
Side Open on Wide Road @9.25Cr.
Broker Excuse. Call 9999297098
HAUZ KHAS 250 Yds, Corner,
Newly Built Third Floor with Terrace,
3 Beds, D/D, Lift @ 3. For more
details contact Owner 8130937120,
9810139604
5 BED 5 Bath D/D For Sale at
Malviya Shivalik Road 3rd Floor,
Excl. Lift, Balconies, Park facing ,
5 Min-Saket Malls, N.E. Entrance,
New Interiors. 2.10 Cr. 9891572424.
SOUTH DELHI
GREATER KAILASH-II, 300 Yds
North /East Facing Newly Deluxe
Flat FF /SF 4 Beds D/D, Attached
Baths, Lift, Stilt 2 car Parking, Price
4.50 Cr. Shukla 9810561500
EAST OF Kailash E- Block 300 Yds
Corner 1st Floor 3 BHK, Freehold
Near Kailash Colony Metro Stn. with
Sarvent Quarter, Lift & Parking.
Owner Jain 9910019884
DEFENCE COLONY, 325syds,
Top Loc. FF, SF, TF with Terrace,
Also GK-1 GF new 300yds 4bhk
2car Parking @3.5cr, TF+Terrace
@4.75Cr. 7838871114
GREATER KAILASH-I/II, 200/
300/500yds north/prk fcng,sept ga-
te prkng, Corner, New/used flrs. also
Independent Houses at attractive
Prices. Randhawa realty 9811163737
PANCHSHEEL
PARK
1200 Sq Yd.
Main Road
Near Club
Free Hold
Single Owner
Clear Title
Full Cheque Deal
Call- 8800022560
SAFDARJUNG ENCL / Green
Park/SDA 500-400-300-200 sqyd
Builder floor, Newly Built/ Booki-
ng rich specifications 2 car Parki-
ngs inside.Rajat Seth 9810877429
VASANT KUNJ wanted/avl. C-8 C-1
B-2 GF, C-1 C-2 B-10 FF 3/4 Beds Sec
A B-3 B-10 SF, B-5 D-6 GF 2/3 Beds
FH. Bhardwaj Asso.# 9818223623,
9818223048, 26130777/0888.
SAFDARJUNG E 270 SF stilt @3.35
E.O.K 400 yd SF park fac. Stilt @5
GK 300 yd corner TF+Trc lift New
GK-I, 500 Yds FF 4 Beds @ 6 cr.
Contact: Shekhar 9810537700
VASANT KUNJ New Allotment DDA
flat excellent loc.1BHK 75lac 2Bhk 99
lac 3 Bhk 170 lac with lift car prkng
Nr. Airport best Investment palace.
Sunny 9891124400, 9310224500
VASANT VIHAR Park facing/
Corner, Luxurious Floor, 4 Beds,
Large Living Dining, Stilt Parking,
Also 3rd Flr +Terrace & Ground Flr.+
Base. Lokesh Bhardwaj- 9811078877
ALL TYPES of Floors available at
Safdarjung Enclave, Green Park,
Hauz Khas, Ready / U/C, clear title,
best Bargains. C.Bhatnagar
9910054561, 9810640198
NEHRU PLACE comml office
510 sq.ft. Hall with pantry/toilet
fully ventilated avbl on 4th flr lift.
27, Saraswati House, Demand
75 Lakh. # 26518143/9811116363
PARK FAC, EOK Blk F, 400sq
yd with CC luxury brand new 2nd
flr,4BR,DD, lift, sqtr, sept. gate/
driveway for 3 cars@ 6.70 cr
(Nego) Khanna Asso: 9810526800
ARADHANA ENCLAVE Adjoining
Chanakyapuri, one of the best
Residential multistorey building of
South/Central Delhi, Builtup 2200ft.
7.95Cr. 9625244883, 9891483481
KOTHI ; P'Sheel Prk 800y; Maharani
Bagh 500y @23.5cr; SDA 600y Crnr ;
Gulmohar Park 500y @33cr; HzKhas
Enc 1350y; GK-I, 1000y @45cr; Def.
Colony. 400y. SR 9999996725
ANAND NIKETAN 375 SF&TF+Terr
Corner N/E facing Park, W/R, Vasant
Vihar 800 BMT+GF, N/E Sep. Drive-
way /800 TF+T. Shanti/Anand Nike-
tan 1200/1000 TF+T 9899755500
LAJPAT NAGAR 1-100 yds-
Ground floor-Park facing -
Excellent Location. For more
details- Link Properties
9810823177
SAFDARJUNG ENCLAVE
250Yds FF /SF 3Beds D/D Lounge
Qtr. Parking Lift Park Facing
7Star Const CC Ready Poss. Pav-
neet 9811036030, 9999926224.
DEFENCE COLONY 325
Yards -Ground basement duplex-
Second floor-For more details :
Link Properties 9810823177
SARVPRIYA VIHAR Third Floor
with Terrace Garden Top of Line
Construction D/D, Lounge, 3 BR's,
Peaceful Location. Grover & Asso
9810173911, 26961118, 26511118
DEFENCE COLONY Sale 325 yards
modern Basement North east facing
Front Entry high ceiling 2500 sq.fts
@ 3 cr. Contact: Gagan kumar
#7703913734, 9971298498.
DEFENCE COLONY Sale 325 yds
GF North east facing 3 bhk attach
DD SQ 3 car prkg separate gate stilt
lift and 5 yrs old@6.5 cr. # Gagan
kumar #7703913734, 9971298498.
SOUTH DELHI
OKHLA-II, A-57/2, 1067
Yds, F'hld, 10,000 sft Cvrd+Cargo
Lift, Behind Kalkaji Bus Depo/Nr
Metro, Vacated by MNC # 95998-
14095 /9313068022, 26160868.
GREATER KAILASH 300Yds
top flr+terr Gdn. 4Beds D/D lou-
nge Qtr. Pkg lift Top of Line Const
N/E Fac. Ready Going Cheap Pav-
neet 9811036030, 9999926224.
WANTED COLLABORATIONS
in Vasant Vhr, GK, Hauzkhas, Green
Park, Gulmohar Park, Panchsheel,
SDA, Anand, Shanti Niketan, Jorb-
agh, Golflinks, Def. Col. 9999503595
JORBAGH 400YD SF&TF Duplex
flr, Vasant Vhr 400/600/800y Flrs,
westend 1200y SF,Niti Bagh/Gulmo-
har 500/800y Flrs, Panchsheel Park
1200y TF #9811333425, 9811059797
GOLF LINK 375 @45; Def Col 325yd
N/E @25; 217yd N/E @16.50; Soami
Ngr 1000yd cnr PF@45; 300yd@ 16;
GK-I/II 200/300/500/1000 N/E @10
/15/21/50 #9811311376,8920931334
FLRS : P'Shil 800y SF @14.5;Mahar-
ani Bgh 800y TF+T@16.5;Neeti Bagh
800 P/F TF+T@18;HzKhasEnc 670 FF
@12.5; Anand Nktn 360y Cnr P/F Du-
plex SF &TF 15.5cr. SR 9999996796
DLF − SUSHANT LOK
FLOORS 400YD DLF-II Grnd+
Bsmt well Maintained/ 300yd Grnd
available North Facing/200yd well
Maintained floorwise Building @
best price. Saudagar 9868033463
SUSHANT LOK-2, 300 Sq Yd
plot on 18 mtr Road. Block-D, be-
hind Hilton. Exclusive & confirm
Deal. NSS Realtor 9810047003
BRAND NEW Builder Floor In
DLF City Phase 2, ultra modern
amenities, vastu perfect at a
very attractive price in 'M'block
call @9999996138
READY TO move apartments
for sale 2,3,4bhk: DLF City, Golf
course Rd & Golf Course Extn. Rd,
multiple options. Genuine buyer
call Ravi Bhatia 9810014353.
RENTED MAIN Golf Course Rd
Rent 70k @1.35cr. Golf Course Ext
Road Rent 80k @1.37cr. Sohna Road
Rent 31k @50Lacs. Bank/Retail Op-
tions also. Call Ankush 9711776151
LUXURIOUS FLOORS Sushant
Lok-I & Souh City-I 215yd 240/300 /
360/ 418/ 500 yd starting at 1.50 Cr
Stilts, Lift, near Metro, North & East
facing. Call 9911441118
DLF FLOORS 215 GF @1.30, 250 GF
@1.30, 250 B+GF 4bhk @1.80, 300
SF+TR @1.40, 400 GF Park facing
@2.35, 400 B+GF Duplex 4bhk
+H.Theatre @2.90. 9810112870
BMT+ GR 215sq yd 4BHK with
Servant room park facing East Fac-
ing with all modern amenities in
Sushant Lok 1 'C' Block at unbeliev-
able price call @9999996138
FOR SALE Varandas 4 bhk Flat
4500 Sq.ft Mapple Tower Higher
floor High End Luxury, Golf
Course road @7.25 Cr. Cont:
9999769990, 9953757550
HERTIGE CITY M G Road. Best
Location Duplex Flat 3 Bedroom
1980 Sq. Feet. Ready to Move.
@2/25. Call. 9811068621.
DLF − SUSHANT LOK
DLF-IV 270Y North/360 y East@
110k/500y East/gated Plots Sushant
Lok-1 813/502yd park fac/ 418/300
North/ East fac A,B & C-Blk, 215yd
gated 9810099171-9958492130
SALE SUSHANT Lok 1. 8 beds
independent house 300 sq yards .
Corner. Park facing. Suitable for
actual user / Capital Gains.
Purri Realtors 9811015635
PRE LEASED For Sell Eros
City Square 850, 3500sqt
Main Road retail shops Cyber Park
3500sqt Axis Bank 953sqt
Cont -9958878123
DLF ALAMEDA Plots Available at
Best Location-250/538/700yd St. A1,
A5,A8,B2,B3,B4,C2,C3,D2,D4, D1,D8
N/E, Park. 60k P.S.yd onwards
Sabharwal 9811196453/9811196843
PRE- RENTED MNCs Logistics Co.-
96K@1.75cr, Stryker- 29k @55L,
Navisite- 80k@1.42cr, ICICI Bank -
86k@2.55cr More opts. Avail./Wntd
OPAKS REALTY 9811706261
DLF PHASE-II PLot L-1 Lane 502
yds @1.60L psyd, N-14 Lane 300yds
@1.50L psyd, A-28 DLF Ph-I, 12M
502 yds @1.20L psyd More Options
Saudagar Properties 9717161207
SOUTH CITY 1 Plots/ floors/ Kothis
240/ 360/ 500/ 1000. Plot DLF-IV
360 yd North, park, gated. Plot
Greenwood 360 yd. Harpreet Singh
Realtors Pvt Ltd 9810306661
SALE KOTHI J-blk DLF-2,GGN
502syd B.Up 7500 appx 6br DD f-
ull bmt,6car park,prime loc.metro
shopp/hosp.12mtr rd.E/fcng @9cr
nego. 9811022205, 9990065550
3BHK BUILDER floor for sale
in Sushant lok-I, Park facing A
class construction Many more op-
tions also available in DLf, SL-
1,2,3 Contact- 9999221308
LUXURY B. Floors DLF -1, 2, 3 4,
S. Lok -1, S.City 1 Sizes-200yds to
500y, ( 3, 4, 5, Bhk,) Duplex, Floors
with lift and stilt, Hi end specifi-
cation 3D Buildcon 9818144410
FLOORS/ VILLAS Fully automated
Luxury floors, 215/300/400/500 yds
in S.Lok,DLF,South City, stilt parking
mod kitchen, ACs, PB, Collaboration
Wanted / Available # 9990305533
AVAILABLE PLOTS DLF-I, II Size:
200/ 270/ 300/ 500 Syd, DLF-IV
270/ 360/ 500 Syd & Sushant Lok-I
300/ 418/ 500/ 800 Syd. Star Shine
Realtors 9910985500
450 SQ.YD Corner C-2 Block Sush-
ant Lok-I 18 mtr. wide road North
East facing Plot Gated area Call:-
Mohit Kukreja 9810417349
DLF − SUSHANT LOK
CONFIRM PLOT Greenwood City
A/B block 360/500yd,Dlf-1,360/ 500
yd East facing, Dlf-2, 215/250/300/
400/500yd,Dlf -4, 270/360/500yd,
SC-1, 240/360/500yd 8287939202
LUXURY APARTMENT for sale
DLF Magnolias, Aralias, Belaire,
pinnacle,salcon verandas,Ambience
Caitriona, golf estate, Unitech world
spa,etc cont -9958878123
CONFIRM PLOTS kothi south city- APARTMENT FOR Sale in DLF
1: 180y@125k,240y@105k,275y@
140k,360y@90k, 500y@90k clear
title/Gtd/park/vastu compliant Sab-
harwal 8750006668, 9206050400
LUXURIOUS BUILDER Floors
DLF-1/2/4 215yd/300 /400/500yd
starting at @1.75 Cr Stilts, Lift, near
Metro, North & East facing.
9911441118
OLD FLOORS for sale DLF Ph-1/2 F
Blk 300yds Gf 1.80, M Blk 300yds Gf
1.75 FF 1.35 K Blk 300yds Ff 1.50 Sf
1.30, N Blk 300yds B+Gf 1.95 GF 1.65.
Samarth 9810299636
DEALS@ LUCRATIVE Price
P.Exotica Penthouse 8905 Sq.Ft;
DLF Primus: 1818 Sq.Ft.; Palm
Spring: 3900 Sq.Ft; Plot DLF-II:
215 Sq.Yds. Call: 9873782808.
DLF-1, 400 Yds Kothi 18 M Nirvana
Country 500 Yds Vastu Perfect
Double Story Livable Kothi SL -1,
C Block 300 Yds Plot Park Facing.
Desraj Kaundal 9811072035
PLOTS DLF-1,2, 502 Pair 12M, 502,
360Park Fac.,400 Pair 18mtr,300 @
1:40,250Y,215,502Y @1:10, 502 Comr
18 Mtr South city-1, 502Y Comr Park
360Y.gated.3D Buildcon 9811162648
PLOTS SUSHANT Lok-1 813/502Y
Park/Gated,418Y park @ 95K 300Y
East/Gated,215Y on 18mtr.(A,B,C blk)
DLF-4 500Y(4500 Lane),360Y@ 1.20
gated 270Y@1.40N. fac. 9711557979
ULTRA LUXURY Flrs DLF1-2,SL-1,
500,400,300,215yds. Superb UG Du-
plx &3rd Flr 4BHK Penthouse+Terce
Sitouts,Grdn,Mod Ktchn,Sqtr,Bar,Lo-
unge,stilts,Aircon,lifts #9818819990
LUXURIOUS BUILDER floors
DLF-1,2,3,4, S.Lok- 1, Southcity- 1
200,250,300,500yd Gated, Stilt
Corner, Park , & as per Vastu. Sabh-
arwal 9953146760/8750006668
B' NEW FLOORS Sec 27 263y @1.5cr,
S.Lok-2 180y @ 1.15cr, 300y @
1.40cr, S.city-2 240y @ 1.40cr, 260y
1.50cr, 500y @ 2.30cr. Best prices
only. OPAKS REALTY 9999606261
EXCLUSIVE PRE- leased For Sale
US based company rent-80/-sqft at
Golf Course Extn. road with standard
and fresh lease. For more details
call-9971991445 Brokers Welcome
B'FUL FLOORS Stilt/Lift/Srvnt.
exclusive in Suncity 276y @2.10cr
only, 250y @1.95cr / 360y @ 2.50cr/
500y @ 3cr call OPAKS REALTY
9711406261
DLF − SUSHANT LOK
BUILDER FLOORS in Sush-
ant Lok-2. Ready to Move. 180
sq.yd 3 bhk @ 1.15 Cr, 4 bhk
300yd @ 1.55 Cr & 500 yd @ 2.15
Cr. NSS Realtor 9810047003
Ridgewood Estate 1371sq ft, 3bhk,
middle floor at an attractive price.
Call@8130845837
INVESTMENT IN pre rented
properties (Top MNC's, Reputed
Retail Brands, Banks, shops. Inv.
Starts 40L to 20Cr ROI upto 9.00%
Call # 7303125072, 9811122067
GURUGRAM
TULIP VIOLET, Sector-69,
Gurgaon, 4-BHK, Unit No. A12/101,
2010 Sqft. with two covered car
parking Ready to Move, Immediate
Sale - Abhishek 9582648522
SOUTH CITY II 538 sq yds property.
Prime location in B Block 3 sides
open corner on 24 meter road.
Built up 1 LR & 2 BR with 2 Bath
Landscaped with Plunge Pool,
Completion Certificate obtained.
Partial finishing remaining. At plot
rate – Owner 9810158136
Exclusive
For Sale/Lease
Ocus Technopolis
GC Road, GGN 3300 sqft
Vatika First India Place
MG Road, GGN 2100 sqft
Suncity Success Tower
GC Ext. Road, GGN
2000-4700 sqft
SCO
Sec-14, GGN
3000 sqft
Magnum Tower
GC Ext. Road, GGN
2800-5600 sqft
Unitech Cyber Park
Sec-39, GGN
4000-5600 sqft
FOR MORE DETAIL CONTACT
9015555511
KOTHI/ FLOOR Newly Built 3BHK
in Sector-52, 263Yds. 1500 Cvrd,
Spacious, 18 Mtrs Road, Stilt+Lift,
North/East/Park Facing, Itlian
Floor/UPVC. # Owner 9810026325
TULIP VIOLET, Sector-69,
Gurgaon, 4-BHK, Unit No. A12/201,
2010 Sqft. with 2 covered car
parking Ready to Move, Immediate
Sale- Bharat 9999101489
FOR SALE- BPTP Amstoria Plot Sec-
tor-102, Dwarka Expressway Gur-
gaon 250 sqyd, Two Side open, East
Facing # 9810102198/ 7011675103
MAPLE HEIGHT, C-Block, Sushant
Lok Phase-1, Gurugram, available
2 Bedrooms attach bath, D/D, 1 Car
Parking space. Immediate Sale.
Salwan: 9810034566, 9810062871
SOUTH CITY-1 Plot 240, 360, 500
Yd Confirm Options For Sale. Also
Available 3 BHK builder Floor
@1.15*. Shah N Baadshah #
8800704030 ## 9654151151
PRE RENTED Nexa
Showroom Available For Sale.
Contact Owner: 8130102222 /
9910054918
FARIDABAD
FARIDABAD HUDA Sectors, 14,
15, 16, 17, 19, 28, 29, 30, 31, 21A, 21B,
21C 21D, 45, 46 Plots, Kothies, Floors
Sunil Properties 199/21C # 98100-
18730, 9810483108, 0129-4041874
FOR SALE 3BHK Flat 1567 sqft 14
Floor, Sec-86 ozone park faridabad
with furniture 52 lac. own flat
Genuine Buyers only Contact:
9826118813
NOIDA/GREATER NOIDA
PLOT 112 mtr Sec-51 @ 1.25Cr, Kothi
180 mtr Sec-41 @ 1.85 Cr, Flat 3
BHK, D/D @ 95 Lac Sec-50 & Sec-37
@ 1.60 Cr. R.G.P.C (P) Ltd.
8860004733
AVAILABLE FOR Lease 50,000
sqft., Shed-30,000 sqft.,RCC-20,000
sqft. in Hosiery Comp. Sector-83.
For Warehouse, Mobile, Automobile
& Industry. #9971768326
NOIDA/GREATER NOIDA
SALE CONFIRM IT plot 1000m.
cnr/2000/4000 m Sec-136, 4200m
Sec-142 & Corp. Plot 1000m. Cnr.
1000/2000m main Rd. expressway
fac. best rates # 9350037810
FOR SALE Plots/Building 372,416,
800, 3200 Sec-2, 3, 4, 5, 6, 8 & 1000,
2000,3200,4000 Sec-80, 83,
84,85,138 Hosiery comp. 4000 mtr
Ecotech-3. # 9711099993
WANTED 5000 to 10,000 mtr.
Plots / Shed/Building in Sec-80, 81,
Phase-2/ 84, 85, 90, Hosiery
Complex, 136, 140. Only Seller
Call: Kundan-9971831792
SEC-44, NOIDA. completion
Plot of 300 mts on 18mts Rd
East Facing . Going Cheap. Many
options available in all Sectors.
Best Properties M: 98 100 88 635
FOR SALE Industrial Plot 800 meter
Sector-16 Noida 24 meter Road and
210 meter Plot and Building in
Sector-3 and more options.
Plz call Mohit Gupta 9810413888
INDUSTRIAL SHED available
for Sale - Greater Noida, Ecotech-I,
Size 1000 mtr. perfect for heavy
machines. Contact: Bimal-
9810394710
BRAND NEW Duplex Kothi with
stilt parking in Sector-39 Noida,
162 sq mtr with 6bhk+bath, DD,
M.kitchen with LIFT, Near Metro
#7838871119
BUY/SELL / Lease Noida Plots
Gr.Noida/YamunaEx-Way Office
Shop IT/ITES/Shade/Corporate
Factory/Building/Warehouse
Industrial Land 9971847626
300 SQ. mtr. Duplex Kothi 5 BHK
Sec-51 East facing 18 mtr road, close
to 2 metro stations. Distress sell.
More options Plots & Kothis avail-
able # 9810253914; 9953633233
TO-LET
NORTH DELHI
FOR RENT 580 ft office in NSP
Pitampura. Workstation for 5-6
person, furnished, AC, Cabin,
Toliet, Pantry. Low maint charges.
Call: 8802123400
EAST DELHI
FOR RENT 1,2,3 Bed, DD in
Mayur Vihar-I, DDA/Society nearby
with/ without lease Broker Excuse
Contact- Sachar (Retd. Engr)
9212113427
OFFICE SPACE. 650 sqft. 1st Flr
avail. at prime loc. Vikas Marg adja-
cent Nirman Vhr metro stn. pillar
no.58. Ideal for Edu. Inst/MNC/
CA/Path Lab. Ujala # 9717050152.
WEST DELHI
FACTORY / Godown/Offices/Ware-
house in Indl. / Coml. at Naraina,
Mayapuri, Kirti Ngr., Rama Rd., Shi-
vaji Marg, Najafgarh Rd., DLF Moti
ngr etc. Shivam Prop. 98100-06330.
COMMERCIAL SPACE Available for
Rent 450 , 900 , 2350 sqft on 1st
Floor East Patel Nagar, New Delhi
Contact: 8700984536
For rent
Main -
Rama Road
New build up
375, Sq. Yard /
15000 Sq.ft
Semi / fully furnished
Basement -1765 Sq. ft, Ground
till 3rd floor 3315 Sq. ft each,
Terrace extra Bare shell /
Toilet, Kitchen Pantry on
each floor, New Otis lift,
Marble flooring 2 sided stair
case in front emergency
fire exit,100 feet / divided
- broad Road, 2 minutes
walk Kirti Nagar Metro.
Cont: 9811301212, 9811498481
DWARKA
NOIDA/GREATER NOIDA
INDUSTRIAL PLOT 2000 Mtr. No-
ida Ph-II,30M road,co. trans, N/E fa-
cing & JP Wish Town Plot 500 sqyd,
facing 18 hole golf, N/E @attractive
price. 9873989240, 9971740113
SALE LUXURIOUS Kothi & Plots
in Posh Sectors, 15A, 17, 39, 44,
47, 50, 51. Size 300-450 sqmts,
excellent location, gr8 deals.
Jain: 9818077228, 9818644228
FOR SALE 2675 Sq ft Society Flat
(Swimming Pool, Gym, Club House),
5th Flr, 4BHK, Dining, Puja, Store &
Servant. 5 Toilets Sector 52, Noida.
Call: 9810748611, 9810606566
DPL FARM House in 5km away
Mahamaya Flyover in 2016sqyds at
Prime Location Nr by J.P Greens &
1 Flat, Antriksh Golf view-II, Sec-78,
Noida # 9911768008, 01123322691
360SQ MTR Residential plot
for Sale in Sector-50 Noida, Park
Facing, Completion, One time
lease rent paid, Near Metro Station
#7838871119
GHAZIABAD
FLAT no. C-408, Princess Park Ahinsa
khand 2 Indirapuram, 3 BHK + 3
Balconies. 1850 Sqft with Piped Gas &
2 Covered Parking, For Sale. Contact :
8510070069.
8FT BY 10ft , two side open, Shop for
sale on GT Road highway at Mohan
nagar metro station, Ghaziabad.
Contact: 9814404494
NAINITAL
RAMA LAKE Breeze City - Bhimtal,
100/200 sq.yds plots @7200/-per
sqyds and 1 BHK Apartment @15 L
only. Registration open Rs. 11000/-,
Balance in 2 years. (All Facilities)
Contact : 9310610845
FOR SALE approx 13 Nali Land
at Baboorkhola, Near Ranikhet,
14 Km from Golf course in
Distt Almora at NH, Contact:
9873055101
HARYANA
COMM. BLDG. Jaipur Highway,
Dharuhera, 1 Acre, 5 Stry+Bsmt.,
Lift, CLU, by Hero Honda. Banquet,
Hospital, Warehouse, Car Dealer.
9910833291, 120-4319282
BHIWADI
ASIANA UTSAV (Bhiwadi) Flat
for Sale (M-441), Park facing
@ 31 Lacs. Contact Owner:
9540508847, 9871713005,
011-25540234
COMMERCIAL
PREMISES
COMMERCIAL PT. For Rent 2342
2343, Karol Bagh, Ajmal Khan Rd.
Opp to Gaffar Mkt Next to Bata Shop
1st & 2nd Floor 2700 Sq ft. Ideal for
bank and office. # 9999473644.
INDUSTRIAL
PROPERTY
FOR SALE Industrial Plot 450 Sq
Meter Shed HSIIDC Kundli Industrial
Area Sector 56 Phase-V. Contact #
9999100113/ 9999158877
PROPERTY WANTED
LOOKING TO purchase 3+ BHK
flat with car park for self use in
gated locality/ society, in Central
Delhi, Owners pl directly contact
at 9810758358
SOUTH DELHI
ANAND NIKETAN, 4BHK, 425
sq.yds, Designer Apartment, AC, Lift,
Terrace Garden, facing Park, Serva-
nt Room. Diplomat/Foreigners/MNC.
Owner # 9871926228, 8800521594.
NEAR Airport, 27,000 ft Commercial
space with 12000 ft Basement
parking n 360 kva backup, suitable
for Automobile showroom, Office,
Hospital etc for Lease. 9811667756
Space for rent available in
Mohan Coop Industrial Area
Plot size
7800 sq yads(3 Units)
(1) Ground floor
30,000 square feet
Independent entrance.
Height 16 feet with
power back up.
Present Tenant: DELHIVERY
Availability from MAY 2020
(2) First floor Space
30000 square feet
With power back up.
Present Tenant DELHIVERY
Two commercial lifts,
capacity 1ton available for
first floor.
Height first floor 30 feet.
Independent entrance
present Tenant: DELHIVERY
Availability from MAY 2020
(3) Third portion, in three
plates of 11,000 square feet
Each on GF, MF and FF
Independent entrance
with power backup.
Available immediately.
With A/C & Power Backup.
with 380 work stations,
6 office rooms, pantry.
Inside premises parking
space for 30 cars Out side
parking for 50 cars.
Please Contact:
Randhir Singh M: 9810030006
Raunaq Singh M: 9871615066
More
Classified Ads
on Page 18

18 WEDNESDAY, 5 FEBRUARY 2020
NEW DELHI
TO-LET
SOUTH DELHI
ONE BHK and also 1 Room, both
100% furnished with bath, kitchen
Independent, Second Floor, Park
facing in Gulmohar Park, Call
Owner- 9810477994, 9354941692
BASEMENT AVAIL For Rent,
Panchsheel Enclave, Area 1800
Sqft, Natural Light & Vent, Suits
Professionals Office, Contact:
Owner: 9810078626.
LAJPAT NGR-II, A-33, Below Metro
1800+1800+1200 Sft. with Lift, 80wrk
stns, Cabin, AC's, washrooms, pantry.
Suits MNC, financials, Instts, Banks,
Corporate #9810028525 (Dealr wlcm)
623 SQ.FT. fully furnished comm-
ercial Office unit at Bhikaji Cama
Place, Corner location with Cabins
& Work Stations available for Rent.
Contact # 9953001754, 9811083286.
SOUTH DELHI Independent
Bungalow Four/Five/Six Bedroom
Drawing/ Dining Lobby Lounge
Servant Quarter Lawn Contact:
45151664/ 41036873
SOUTH DELHI
FOR RENT N Block GK-1, 300 yards
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D-903 NFC Prime Location corner
independent triplex unit basement
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MALVIYA NAGAR 1100,sq ft,Ground AREA FOR rent in 5 star building,
Floor, Commercial Shop Available for
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9810300311/9818054363
GREEN PARK Extn Ground Floor
2 Specious double bedroom attach
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9873341468.
MOHAN CO- operative ind. Estate,
Space available for rent Approx.
6100 Sq.feet at Basement, height 11
feet. Rent @22/- p.sqft. Cont. Vinod
# 9811097822, 7011402340
SOUTH DELHI
TO LET Lajpat Ngr-III, 2 flats 3BHK -
200 sqyds on 1st & 2nd flr; AC fitted,
lift,IGL Gas, Security Sys; Nr Metro,
Hosp. # 9810002830,9810602838
KAILASH COLONY Main
Road -Ground Floor - 1700sqft -
1000sqft - 350sqft - For more
details: Link Properties
9310023177
HAUZ KHAS, Main Rd, 2000 Sft.
2nd flr with Lift Fully Furn. Specific
permissible Use Area avail. for
Rent@1,80,000/. O.T.Conv. Chgs
paid. # 9910464000, 9818012369
pinnacle tower Suraj Kund Taj
Vivanta Faridabad for lease, Area
for 3 to 10,000 Sq.Ft., 2 Months
Brokerage 9811504750
MAIN CENTRAL Market, E-29
Lajpat Nagar-2, Commercial. Ground
Floor. 900 sq. ft. for Rent Interior
Done , Excellent Visibility. owner
9971811422 Whatsapp 9953319769
VASANT KUNJ 10 BHK, Nelson
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SOUTH DELHI
GREATER KAILASH-1, Ground
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Also DDA Shop Ground Floor 300
Sq.ft.Triveni Sheikh Sarai-1 @ 40
call 9810040488. 9999168929
M BLOCK MARKET GK-2
Commercial Space for Rent, 1000
sqft. at 2nd Floor, Front Facing,
Excellent Prime Location. Contact
Owners 9810249810, 9810311880
AVAILABLE KOTHI Sunder Nagar VASANT VIHAR, 600 sq.yds. Inde-
@ 10lakhs, Golf Links 3+1 575 yds
Corner Park Grnd Floor @ 4.5lakhs,
Golf Links / Sunder Nagar/Jor bagh
many options. 9873020004.
NEHRU PLACE. International
Trade Tower. For Lease 2000-4200
Sq Ft. Furnished / Unfurnished.
Suits MNC. Good Companies.
Purri Realtors 9811015635.
SOUTH DELHI
DAYANAND COL., Lajpat Ngr-IV,
100yds, Consisting LGF, Gf, FF, 2F, 3F
C- 9/4, DLF- 1, Excellent Location,
Each Flr 2 BHK & LGF as Hall Suitable
for off/ Res. Nr.Ring Rd.& Metro Stn.
# 9873511515, kpssethi13@gmail.com
ANAND NIKETAN GF & basement
8000 sqf 4BR, fitted Mod. Kitchen
huge Living Fmly Lounge AC.Parking
Ser. Qtr. Suits Foreigner/ Diplomat/
Embassy. 9811074064, 9899869933
pendent First Floor, 5 Beds, 4 Baths
with Terrace, AC, SQ, Independent
Driveway, Preferably Foreigners.
Cont: Manish Chadha: 9810069585
BUNGALOW VASANT Vihar
2000 / 1000 sq.yards. 7Beds / 5Beds
D/D, Both Front & Back Lawn. W/R,
Good Location. C6, FF, C-Block,
Market Vasant Vihar. 9899755500
DLF − SUSHANT LOK
Suits Foreigners, MNC'S Guest House,
High End , Fully 5 Star Furnished,
Drawing, 5 Beedrooms, Dining, Big
Lobby # 9810162866, 9810300431
GURUGRAM
MG ROAD fully furnished
11000sft brand new office space+
225 work stns, 5 cabins, 2 meeting
room,washroom, large terr.& cafe
owner: 9958444918,9599089652
Available For
Lease / Rent
GOOD EARTH
CITY CENTER
Fully Furnished Office
Space 16,000 sq.ft.,
5th Floor, Sector- 50,
Gurugram (HR)
Call:
9811227823
9811027823
EM: BNRN@BNRNGROUP.COM
GURUGRAM
FOR RENT TE- 1201A, 3BHK, 2279
Sq. ft. and TE - 902,3BHK, 2279 Sq
.ft. Presidia Apartment, Pioneer
park, Sec - 62 Gurgaon, Contact :
Pradip 8585900105
UDYOG VIHAR- III, 468-469, New IT COMMERCIAL SPACE for Rent
Bldg, prime location, Green Certified
with all modern amenities. 5 star fully
/semi-furnished 6500-60000 sft. am-
ple parking 9810162866, 9810300431
FOR RENT Belvedere Towers, DLF
Phase-2, Area- 2650 sq.ft., 1st Floor,
4 Bedrooms/Bathrooms, Beautifully
Fully Furnished,1 Car Parking,Servant
Quarter. Contact: Owner-9899249120
FOR RENT 1730 sq ft front Highway
facing semi furnished unit 801 in
BPTP Park Centra, Sec-30,Gurgaon +
3200 sq ft & 6 car park in Noida One
9th flr, Sec-62. Niranjan 9312230365
CENTRAL DELHI
CONNAUGHT PLACE, Wanted/
Available Furnished Offices on Rent
Area 500-5000 Sq ft suits MNCs
Corporates contact Swaraj Enter-
prises 9999241954, 9560040074
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CENTRAL DELHI NOIDA/GREATER NOIDA NOIDA/GREATER NOIDA
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without lift. Hailey Rd: 3BHK, Sundar HOSPITAL BUILDING, 11 Floors
FOR RENT 42 Bed fully furnished-
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Barakhamba rd 1000, 7000 & Location, Avlbl for Rent (Part/Full) Lease. Contact - Dheer #
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Em: lifecare61@gmail.com
at Naurang House, 21, K.G. Marg,
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13th Floor, Super Area 2192 Sq.ft.
# 9810432266 / 9811162162
NAURANG HOUSE K.G. Marg
Connaught Place 2nd Floor B'ful
Fully Furnished 528 Sq. Ft, With AC,
Furniture Etc. Cont: Owner
9811118088, 7982952177
AKASHDEEP BLDG Barakhamba
Road, Furnished Office 440 sqft
Carpet area, for immediate Rent,
Brokers Welcome. Owner -
Cosmos # 9810001682
VAISHALI/VASUNDHRA
FOUR BEDROOMS Furnished
2nd floor East facing with Store &
Parking Available in Indrapuram
Niti Khand 1 Contact Mr. Mehra
9582480041.
 Telegram Channel: https://t.me/KittusWealthJourney

POLITICS WEDNESDAY, 5 FEBRUARY 2020

NEW DELHI 19

AAP releases manifesto No decision taken yet

on nationwide NRC:
for Delhi assembly polls Centre to Parliament
Anuja
anuja@livemint.com
Doorstep delivery of ration, 24-hr shopping, aid for sanitation workers among promises NEW DELHI
PM Narendra Modi with BJP

T
president J.P. Nadda ahead of m MINT GRAPHITI he government told Par-
the BJP parliamentary party Pretika Khanna liament on Tuesday that
meet on Tuesday. PTI pretika.k@livemint.com it has not yet taken a
NEW DELHI A tale of three manifestos: playing on populism decision on a nationwide reg-
Opposition With Delhi set to vote on Saturday, the three political parties—incumbent Aam Aadmi Party (AAP), and ister of citizens.

T
he Aam Aadmi Party challengers Bharatiya Janata Party (BJP) and Congress—have declared their manifestos. A look at what the The clarification came amid
(AAP) on Tuesday three parties promise Shashi a high-decibel debate in Par-
misleading released a 28-point elec-
tion manifesto for the Congress
Tharoor
invokes
Kunal
liament on the Citizenship
(Amendment) Act, or CAA, the
AAP BJP
people on assembly polls in which
it has promised doorstep delivery of
ration, 24-hour shopping areas in
FREE bus rides for women, WHEAT flour at FREE electricity up to 300
Kamra in
Lok Sabha
to take a dig
National Population Register
(NPR), and the National Regis-
ter of Citizens (NRC).
subsidy on water and ₹2 per kg for poor units; subsidized education up at Modi govt
budget: PM the national capital, and ₹1 crore
compensation for the kin of sanita-
electricity tariffs to continue
AMNESTY scheme to
FOCUS on Fit India,
Fit Delhi campaign; a
till Class XII in notified slums
MONTHLY unemployment
bit.ly/2OuFQO
S
“Till now, the government
has not taken any decision to Nityanand Rai, minister of
tion workers who die while on duty. dispose of VAT cases library in 280 wards allowance of ₹5,000 for
prepare NRC at the national state for home affairs, said
Gyan Varma The manifesto was launched by level,” Nityanand Rai, minister providing Aadhaar details was
pending since 2017 or earlier graduates and ₹7,500 for
gyan.v@livemint.com AAP national convener and Delhi 51,000 for marriage postgraduates of state for home affairs, told voluntary for NPR. PTI
NEW DELHI chief minister Arvind Kejriwal, 1 MILLION senior citizens to of girls from the Lok Sabha in response to a
along with deputy chief minister be taken on pilgrimage over financially weaker 1.1 LAKH for marriage of question by Nama Nageswara Congress leader and former
the next five years sections graduate girls from financially

P
rime Minister Narendra
Modi on Tuesday told
parliamentarians of the
ruling Bharatiya Janata Party
(BJP) that the Opposition were
trying to mislead the people of
the country on the recently
presented Union budget.
The budget is meant to facili-
tate the development of the
country, and it was a good bud-
get in view of the economic cir-
cumstance prevalent in India,
and the rest of the world, Modi
said at the parliamentary party
meeting of the BJP, which was
attended by party members of
both the Lok Sabha and the
Rajya Sabha.
Union ministers and other
senior leaders of the BJP also
spoke about the threat of novel
coronavirus, which has caused
alarm globally, resulting in the
death of about 400 people,
especially in the light of the
three confirmed cases reported
in Kerala.
Modi expressed his satisfac-
tion over the signing of the
Bodo accord and settlement of
members of the Bru-Reang
tribe in Tripura. This was not
the first time that Modi has spo-
ken about the agreement. The
prime minister had, during a
recent Mann Ki Baat monthly
radio programme, said that the
decision was historic.
The parliamentarians also
congratulated J.P. Nadda, a
Rajya Sabha MP and former
Union minister, on being
appointed as the party presi-
dent. This is the first parlia-
mentary party meeting of the
BJP during the ongoing budget
session and after the appoint-
ment of Nadda as the party
chief.
Manish Sisodia, Rajya Sabha mem- Rao of Telangana Rashtra Union minister Shashi Tha-
poor households
ber and Delhi election in-charge DOORSTEP delivery ELECTRIC scooters Samithi (TRS). roor alleged that the govern-
Sanjay Singh, and cabinet minister of ration promised to 72,000 aid per year for The Opposition alleges the ment had failed on various
Gopal Rai. college-going girls 500,000 poor families government does not have a fronts and, therefore, its
COMPENSATION of
Seventy assembly constituencies definitive stand on the issue. schemes should be renamed as
₹1 crore for deceased BICYCLES for girls 100 Indira canteens serving
in Delhi go to poll on Saturday. The cleanliness workers in Class IX meals at ₹15 to be set up West Bengal chief minister “sit down, shut down and shut
last day for campaigning is Thurs- Mamata Banerjee attacked the up India”. Tharoor said the
day, and the election results are to ruling Bharatiya Janata Party Centre had reduced Parlia-
be announced on Tuesday. PARAS JAIN/MINT (BJP) over NRC, claiming its ment to a “notice board”,
The manifesto has been pre- that in mind. We cannot do this tinue working with the central gov- protection from sealing. precursor was NPR. She which prompted Union minis-
pared on the basis of suggestions alone but need the support of the 2 ernment to enact the Delhi Jan The manifesto has also promised appealed to other non-BJP ter Ravi Shankar Prasad to say
received during booth campaigns, crore residents of Delhi and the Lokpal Bill, which was passed by to recognize Bhojpuri and seek its leaders to care- the Opposition
townhall meetings, mohalla sabhas, central government. This mani- the assembly in 2015, but is pend- inclusion in the Eighth Schedule of fully study the Government should not target
and door-to-door meetings. Last festo has something for everyone,” ing with the lieutenant governor, the Constitution. questions and cri- also clarified in democratic insti-
month, the party had formed a Kejriwal said at the launch of the and the Delhi Swaraj Bill. The party “AAP’s vision is to enable every teria of the NPR Parliament that tutions.
three-member committee to frame manifesto. said it would also continue its common man to live with dignity form before tak- no document The motion
the manifesto led by senior AAP On 19 January, Kejriwal had efforts to regularise unauthorized and prosperity...This is a vision and ing a decision on was also taken up
would be
leader and candidate from Kalkaji released a 10-point guarantee card, colonies. These were key parts of its we appeal to the voters of Delhi to updating it. in Rajya Sabha by
constituency Atishi, vice-chairper- which included reducing pollution 2015 manifesto. vote for this dream that we have for The govern- collected during senior BJP leader
son of Delhi Dialogue Delhi,” Sisodia said. Delhi is ment also clari- NPR exercise Bhupender
Commission Jasmine POLL PLANK facing a three-cornered bat- fied that no docu- Yadav, who
Shah, and party spokesper- tle between AAP, the Bhar- ment would be attacked the
son Ajoy Kumar. AAP promises to EFFORTS will THE party also MANIFESTO also atiya Janata Party (BJP), and collected during the NPR Opposition for “poisoning
AAP is focusing on the continue working
with the Centre to
continue to
regularize Delhi’s
promised to conduct
spoken English
promises to seek
inclusion of Bhojpuri
the Congress. The BJP and exercise, while providing Aad- young minds through hate-
work done by the state gov- enact Jan Lokpal bill, unauthorized classes, widen Delhi’s language in the Congress have already haar detail was only voluntary. filled speeches” in the name of
ernment over the past five and Delhi Swaraj bill colonies Metro network Eighth Schedule released their manifestos “No document is to be col- freedom of expression during
years, especially in areas and have promised clean air lected during the updating of the anti-CAA protests.
such as education, health, and free electricity up to NPR,” Rai said. Senior leaders in the Rajya
water and electricity. by one-third, ensuring continuous AAP also promised to conduct 300 units. respectively. Meanwhile, both Houses of Sabha, including Leader of the
“In the last five years, our gov- piped drinking water supply, build- spoken English classes, widen “AAP has been in the driving seat Parliament discussed the Opposition Ghulam Nabi
ernment has given relief to the peo- ing houses for slum dwellers, and Delhi’s Metro network to 500km, in this election. No other political motion of thanks on President Azad, took on the government
ple of Delhi in many areas. Our extending free travel, which was till and develop the Yamuna riverside. party has looked at education and Ram Nath Kovind’s address to during the course of the dis-
vision is to take Delhi to the next then only for women, to students. For businesses and traders, the health as election issues. This is the joint sitting. Opposition cussion.
level in the next five years. We want He also guaranteed that the exist- party has promised an amnesty forcing national parties to also parties took on the Union gov- The discussion in both
the people of Delhi and the country ing schemes of the state govern- scheme for pending value-added make similar announcements,” ernment over the issue of CAA Houses of Parliament will con-
to be proud of the city. We have ment would continue. tax (VAT) cases, upgradation of said Subrata Mukherjee, a New Del- and accused it of engaging in tinue on Wednesday.
prepared this manifesto keeping The party has promised to con- markets and industrial areas, and hi-based political analyst. the politics of polarization. PTI contributed to this story
As virus spreads, scientists say outbreak may take weeks to shows signs of stabilizing
Srishti Choudhary three infected had contracted land China and one each in which in case of SARS, had
srishti.c@livemint.com the virus, during their stay in Hong Kong and the Philippi- made the disease more chal-
NEW DELHI Wuhan, the epicentre of the nes. However, a steady rise in lenging to contain.
outbreak in China. the number of patients recov- Also, ongoing research stud-

Nadda told the MPs that
more than 240 parliamentari-
ans of the party were involved
in the ongoing election cam-
paign in Delhi. The BJP has
invited leaders of the Shiro-
mani Akali Dal and Bihar chief
minister Nitish Kumar, who is
also the chief of Janata Dal
(United), to campaign for the
party and help defeat the ruling
Aam Aadmi Party (AAP).
The BJP has been out of
power in Delhi for the past two
decades and the party is confi-
dent that with the Congress
becoming a marginal player, it
would be able to defeat AAP in
this election. Voting in Delhi is
scheduled for 8 February and
counting of votes will take
place on 11 February.
PTI contributed to this story.
W
ith the novel corona-
virus spreading
across the globe and
new infected cases being
reported every day, scientists
contend that it may take a few
more weeks for the epidemic to
show any signs of stabilizing.
As on Tuesday, 20,626
infected cases have been
reported from across the world,
out of which 20,436 were from
mainland China. Around 190
cases have been reported from
26 other countries. A majority
of the patients got infected dur-
ing their travel to China, bar-
ring 27, whose case history is
under investigation.
While India, too, confirmed
three positive cases in Kerala,
there has been no human-to-
human transmission yet. All
More than a month after the
outbreak, the epidemic curve
shows no major signs of reach-
ing an inflection point, with
more new cases expected
despite aggressive screening
measures across countries.
According to Johns Hopkins
University, the epidemic curve
continues to show a steady
upward rise, from 278 cases on
20 January to over 20,000 on
Tuesday. Each day sees an aver-
age of around 2,500 new cases,
though mostly across mainland
China.
“It is too early to say. In case
of RNA viruses, we never know
when they start mutating and
become more or less virulent.
They can change their behav-
iour anytime. Though it has not
undergone any major muta-
As on Tuesday, 20,626 infected cases have been reported from across the world.
tions, but we do not know,” said
Dr Shobha Broor, a New Delhi-
based senior virologist.
While the epidemiology of
2019-nCoV, remains unclear,
scientists say it may take a few
weeks before it shows some
signs of stabilizing.
According to epidemiolo-
gists, there is generally a sud-
den spike in the number of new
cases during the initial period
of an outbreak. The numbers
rise with more screening across
regions and identification of
cases. However, it begins to
decline as more containment
measures are put in place and,
eventually, tapers off.
“There is screening across
REUTERS
countries, suspected cases are
being quarantined and con-
firmed cases are isolated. These
measures will take time to show
results, which will be evident
with new cases coming down,
but viral outbreaks do not end
so fast,” added Broor.
The mysterious virus has so
far claimed 425 lives in main-
ering from the illness has also ies from China show that 2019-
been reported. As on Tuesday, nCoV is also more likely to
over 667 people have recov- infect older adult males with
ered and the chronic health
number i s At the same time, conditions as a
expected to rise. over 667 people result of a weak
“This new across the globe immune system,
virus does not have recovered besides most of
seem to be as these patients,
from the illness
deadly a killer. So especially the
far, the mortality and the number is severely ill, had
rate is low (less expected to rise co-infections of
than 4%), as com- bacteria and fungi.
pared to other “For severe
coronaviruses like SARS-CoV mixed infections, in addition to
(10%) or MERS-CoV (35%). the virulence factors of patho-
There is no need to panic,” said gens, the host’s immune status
Dr Abdul Gaffur, infectious dis- is also one of the important fac-
eases expert, Apollo Hospital, tors. Old age, obesity and pres-
Chennai. ence of other health issues
Apart from low mortality, the might be associated with
virus has also not shown pres- increased mortality,” said a
ence of any “super-spreaders”, paper published in Lancet.

Stating that growth outlook will remain weak, it has put real
m SHORT TAKES gross domestic product (GDP) growth during the current fiscal at
FM urges industry to make AI, data will drive new credit
4.9%, slightly below the government’s forecast of 5%. For the next investments push growth disbursal systems, says Nilekani
fiscal, it estimated real GDP growth of 5.5%, lower than 6-6.5% pro-
Sebi examining legal aspects for jected by the government’s Economic Survey. PTI
PRADEEP GAUR/MINT
Bengaluru: Credit disbursal
MINT

listing NSE, says Tyagi systems in the future will be

MINT
Mumbai: Securities and
Exchange Board of India (Sebi)
chief Ajay Tyagi on Tuesday said
it has received communication
from NSE for its listing, and its
examining legal aspects.
This comes a month after NSE
chief Vikram Limaye said that
the stock exchange plans to
launch its initial public offering by September. PTI
India’s GDP expansion likely at 4.9%
in FY20, 5.5% in FY21, says Moody’s
New Delhi: Moody’s Investors Service on Tuesday said economic
growth projections made by finance minister Nirmala Sitharaman
in her budget for 2020-21 appear ambitious given the structural
and cyclical challenges facing the Indian economy.
entirely based on data, technol-
In reforms for FPIs, regulator ogy and artificial intelligence
(AI), which will help calculate
notifies common application form non-performing assets, enable
faster credit disbursal, Infosys
Mumbai: The Securities and Exchange Board of India (Sebi) on chairman Nandan Nilekani said.
Tuesday notified a common application form for the registration “Credit decisions will be made
of foreign portfolio investors (FPIs), which will enhance opera- against business flows and not against assets, and the decision will
tional efficiencies. The move is part of the Centre’s initiatives to be based on AI and taken within a few seconds. It can detect both
bring in reforms to allow FPIs to easily access the Indian markets. good and bad credit risks,” said Nilekani. MADHURIMA NANDY
Under the existing norms, FPIs had to submit two applications—
one to Sebi and the other to Central Board of Direct Tax—for a per- New Delhi: Finance minister Nirmala Sitharaman on Tues-
ANIRUDDHA CHOWDHURY/MINT manent account number. day said the industry needs to “shun hesitation” and make Iowa reports no caucus winner after
The new form was notified by investments to drive growth. “I don’t think in today’s condi-
‘inconsistencies’ bedevil count
the Centre on 27 January but tion it can just be government spending, which can pull the
Sebi notified it only on 4 Febru- economy towards that growth that all of us want,” she said.
ary. “The delay is because the “The approach has been that the government will spend Iowa: The Iowa caucuses that were to give shape to the Demo-
earlier notification was based on on asset creation and the cascading effect of the spend which cratic presidential race left candidates and voters hanging with no
2014 FPI regulations,” said a per- the industry will benefit from,” the Union minister said at a results and no springboard into the next round of contests.
son with direct knowledge of the post budget interaction. SHREYA NANDI The Iowa Democratic Party blamed a “coding issue in the
matter. JAYSHREE P. UPADHYAY reporting system” that it said has since been fixed. BLOOMBERG
 Telegram Channel: https://t.me/KittusWealthJourney

NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 14 NO. 32 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR)

SEBI EXAMINING LEGAL ASPECTS NILEKANI: AI, DATA WILL DRIVE

WEDNESDAY, FEBRUARY 5, 2020 OF NSE IPO, SAYS TYAGI uP17 CREDIT DISBURSAL SYSTEMS uP17
LIVEMINT.COM

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AAP, BJP, Cong make last-minute POLLUTION WATCH

01
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0
DELHI
201-300
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Somanathan on
TWITTERVERSE
budget allocations While AAP released poll manifesto, PM Modi and Congress leaders Rahul and Priyanka addressed rallies
Expenditure secretary
T.V. Somanathan RAMESH PATHANIA/MINT PRADEEP GAUR/MINT RAMESH PATHANIA/MINT
explains the rationale Gyan Varma & Anuja asked.
behind the budget “For three hours, the (Union)
NEW DELHI
allocations. See Page 16
budget did not address anything

No decision yet on
NRC for all: Centre
The government told
Parliament that it has not
yet taken a decision on a
nationwide register of
citizens. See Page 17
n-CoV may take
weeks to stabilize
Scientists said it may take
a few more weeks for the
novel coronavirus to
show any signs of
stabilizing. See Page 17
Impact of removal
of duty on PTA
PTA producers, including
RIL and IOCL, could see
their margins narrow as
govt cut anti-dumping
duty on it. See Page 16
T
op leaders of the three
major political parties in
CFA exams the Delhi assembly elec-
will soon be
digital, have
tions made a massive
fewer last-minute push for
questions votes on Tuesday, with less than
and a new two days left for campaigning to
schedule
end.
bit.ly/2UooIhp The ruling Aam Aadmi Party
(AAP) released its party manifesto,
and followed it up with as many as
four public meetings by its national
convener and Delhi chief minister
Arvind Kejriwal.
Prime Minister Narendra Modi
addressed a public meeting of the
Bharatiya Janata Party (BJP), which
is trying to win the elections in
Delhi after more than two decades
in the Opposition, while Congress
rallies were addressed by former
party president Rahul Gandhi and
general secretary Priyanka Gandhi
Vadra.
Kejriwal challenged the BJP to
announce its chief ministerial can-
didate by Wednesday afternoon
and said that he was willing to hold
a public debate with their candi-
date.
“I want to tell the BJP that the
people of Delhi want to know who
their chief ministerial candidate is
and I am ready to hold a debate with
that candidate,” Kejriwal said.
AAP’s next course of action will be
announced on Wednesday, he said.
about employment and farmers. It Piyush Goyal
was an empty speech which for- @PiyushGoyal
gave ₹1.5 trillion in corporate
A Strong Start: India’s
taxes,” he said. manufacturing activity
Gandhi said that while Modi in January is at an 8 year
gave a good slogan of Make in India, high after a sharp rise in
no factories were set up. In a refer-
new business and pro-
ence to the government’s divest- duction, giving employ-
ment programme, he said it wanted ment a major boost.
to sell everything and would one
day sell the Taj Mahal too. Kapil Sibal @KapilSibal
“Real issues are not being dis- Dear PM, Was :
cussed. People either talk about 1) The violence in JNU
dividing or other countries. There 2) Statements of your
(From left) AAP national convener Arvind Kejriwal releases party manifesto; PM Narendra Modi addresses a are some people who claim if you Ministers in Delhi and LS
rally in Dwarka; and Rahul Gandhi at a rally in Sangam Vihar, on Tuesday. question them you are a trai- 3) Yogi Adityanath’s
tor...but the public knows every- communally charged
At a public meeting in Dwarka, days. Rahul Gandhi addressed his first thing. They know who are statements, meant to
Modi focussed on national issues, The prime minister once again public meeting after the announce- merely advertising and who prom- build harmony?
saying Delhi needs a government accused Opposition parties of ment of Delhi elections. He ise to work. When you go to vote
that stands with the country on spreading lies on CAA. People of addressed a second meeting, along you have to think what kind of
issues of abrogation of Article 370 Delhi can see through the games of with Congress leader Priyanka country and state you want,” Vadra
and implementation of the Citizen- people indulging in vote-bank poli- Gandhi Vadra. said in Sangam Vihar.
ship (Amendment) “Modiji has said “The prime minster and the
Act, or CAA. RAISING THE PITCH he would give chief minister do not talk about real
“Those who employment to issues, they will not bring it up
MODI accused the RAHUL Gandhi said Sitaram Yechury
instigate people KEJRIWAL two crore youth. because they do not have the cour-
@SitaramYechury
for their politics challenged the BJP
to a public debate
Opposition parties of neither BJP nor AAP
doing vote-bank created jobs and that
Did two crore peo- age. Modi and Kejriwal won elec-
tions by repeatedly lying. Whole After all the drama that
and people who with its chief politics, spreading Cong is the only one ple get jobs annu-
Delhi knows that if anyone has this RSS/BJP govt does,
are involved in ministerial candidate lies on CAA that worked for Delhi ally? What did the
worked here, it is the Congress and it has zero commitment
vote-bank politics, Aam Aadmi Party
in the future also only we can,” for our jawans and
can they work for do for generating
Rahul Gandhi said at the first meet- brave soldiers in Sia-
the development of Delhi? People tics, he said. “Vote-bank politics jobs? Did the Congress do demone-
ing. chen. It must answer for
who question police on the Batla and bad intentions cannot develop tization? Did the Congress intro-
this corruption and
House encounter, can they work Delhi, complaints cannot develop duce the Gabbar Singh Tax (his gyan.v@livemint.com
inability to equip our
for development?” Modi asked in Delhi,” Modi said. nickname for GST, or the goods Pretika Khanna contributed to
troops on the border.
his second public meeting in two Former Congress president and services tax)?” Rahul Gandhi this story.

Rajapaksa to finalize Army, IAF, Navy integration in 3 years: report Karnataka launches door
contours of $450 mn delivery of govt services
Elizabeth Roche on the nature of the require-
elizabeth.r@livemint.com ment, additional aircraft could
NEW DELHI be deployed, he added. Sharan Poovanna tificates. “The initiative is

funding during visit Significant cost cutting in sharan.p@livemint.com launched with the motive of

I
n a major restructuring each command will be BENGALURU getting government services
exercise, India will begin achieved through common delivered to the citizen’s door-

G
REUTERS integrating the operations stores management, shared overnment services in steps,” Yediyurappa said on
Elizabeth Roche of the Army, Air Force and bases, maintenance stocks, Karnataka will now be Tuesday in Bengaluru.
elizabeth.r@livemint.com Navy within the next three and the use of similar weap- available at the press of There are 53 services that
NEW DELHI years, news reports quoted ons. “In co-located stations, a button, with chief minister can be availed through this ini-
India’s new chief of defence there is tremendous scope for B.S. Yediyurappa tiative, including

I
ndia and Sri Lanka will work
out the details of projects to
be taken up under a $450
million line of credit during Sri
Lankan Prime Minister
Mahinda Rajapaksa’s visit to
India from 7 to 11 February.
The Sri Lankan leader’s visit
to India is his first abroad since
being named prime minister
in November last year. A
former President of Sri Lanka,
Mahinda Rajapaksa was
appointed prime minister
after his brother Gotabaya
Rajapaksa won the presiden-
tial elections earlier in Novem-
ber.
The credit package for Sri
Lanka was announced last
year and the two sides are now
set to unveil the implementa-
tion timelines. The two coun-
tries will also look at enhanc-
ing sub-regional maritime
security cooperation, accord-
ing to a statement by Raja-
paksa’s office on Monday.
“During the state visit of
Sri Lankan Prime Minister
Mahinda Rajapaksa will be in
India from 7 to 11 February.
“With the aim of enhancing
engagement in subregional
maritime security coopera-
tion, the two delegations are
expected to discuss key areas
under the defence and mari-
time security initiatives that
include the Sri Lanka-India
Annual Defence Dialogue and
the trilateral maritime security
cooperation with India and the
Maldives,” it said.
The stepping up of contact
staff Bipin Rawat on Tuesday.
Rawat said he aims to
“develop the services as an
Armed Force”, integrating
capabilities, logistics and man-
power within the new military
commands, the reports added.
The aim of the exercise is to
bring down expenses, ration-
alize manpower and ensure
the Armed Forces take on the
challenges as a cohesive unit,
he said.
The number of commands
has not been finalized, but
Rawat said he was looking at
AAP’s Atishi banks on Delhi govt school reforms to woo Kalkaji voters
Pretika Khanna
pretika.k@livemint.com
NEW DELHI
India’s chief of defence staff Bipin Rawat said the aim of the
exercise is to bring down expenses and rationalize manpower.
proposals that would result in
the creation of a western thea-
tre command and a northern
command that could cover
India’s northern borders.
In addition to these com-
mands, which would cover the
land frontier against Pakistan
and China, the country will
schools in the area.
Education seems to be the
central theme of her campaign.
Slogans playing on campaign
HT
also have a peninsula com-
mand an air defence command
and space command and a
multi-service logistics com-
mand and training command,
Rawat said.
Each theatre command
would have an integral Air
Force element and depending
the management of resour- on Tuesday There are 53 police verifica-
ces,” Rawat said. launching Jana services that can tion certificates,
One far-reaching proposal, Sevaka, a call and be availed application for
directly linked to the need to app-based door through this pension, income
cut down on the huge ₹1.33 delivery of various certificates, caste
initiative,
trillion pension budget of the government servi- certificates,
Indian Armed Forces is to ena- ces. including various health card, and
ble non-officer ranks to work The move is certificates even unemploy-
till 58. “One third of the Army, part of the govern- ment certificates.
I believe, can work till the age ment’s efforts to The citizen can
of 58,” Rawat said. digitize its working and provide call the toll-free number, fix an
At present, soldiers in the relief to citizens who are forced appointment for a home visit,
Armed Forces are retired to run from pillar to post validate and scan documents,
between the ages of 37 and 38, between multiple departments get SMS updates and get the
as opposed to officers who to avail basic services such as final requested item for a fee of
usually retire at 58. procuring documents and cer- ₹115 in total.
There are long-term Punjabi “This is not like the Lok
residents as well as migrants Sabha elections. This time we
from Bihar and Uttar Pradesh. are fighting for Delhi and the
This election, Kalkaji is see- work that we have done here. It

President Gotabaya Rajapaksa
last year, prime minister (Nar-
endra) Modi announced a
$450 million fresh line of
credit to Sri Lanka. The two
countries are expected to
finalize the implementation
agenda during this forthcom-
ing visit of Prime Minister
Rajapaksa,” according to the
statement from his office.
“Follow-up discussions on
Indian assistance to enhance
training opportunities for Sri
Lanka are expected in the
fields of vocational training
and training of the public ser-
vices,” according to the state-
ment.
I
comes against the backdrop of
an increasing presence of
China in the Indian Ocean
region, which India considers
its sphere of influence. China
has also invested millions of
dollars in Sri Lanka as part of
its ambitious Belt and Road
infrastructure initiative.
In recent years, India has
boosted its development
assistance to Sri Lanka, with
the aim of weaning Colombo
away from China. India’s over-
all commitment stands close to
$3 billion, out of which around
$560 million are in grants, the
Indian foreign ministry web-
site said.
t is 6pm on Monday evening
and Atishi, Aam Aadmi
Party’s (AAP) candidate from
Kalkaji constituency, is on her
third election event of the day
—a padayatra (a walking cam-
paign) in Sarai Jullena village.
Over the next two hours, she
goes on foot, meeting residents
through the narrow lanes of
Sarai Jullena and Bharat Nagar
areas that account for approxi-
mately 10,000 voters.
Greeting each voter, Atishi
asks them to vote for the jhaadu
(broom, AAP’s election symbol)
on Saturday and a follow-up
question on what they felt
about the development in
trucks announce how she
worked for the education
department on a token salary of
₹1 and how she is chief minister
Arvind Kejriwal’s most
dependable colleague.
Delhi goes to poll on Satur-
day. Since the morning, Atishi,
who is seen as the architect of
Delhi’s education reforms, had
held a similar padayatra in Nav-
jeevan Camp followed by a
public meeting in Sri Niwasp-
uri. Another public meeting
scheduled later in the day was
cancelled due to permission
issues. The audience includes
more women than men.
On Tuesday, she held two
ing a high-stakes battle is about local issues and that is
between the Bharatiya Janata what our focus is,” Atishi told
Party’s (BJP) Dharamvir Singh, Mint.
Congress’s Shivani Chopra and A member of the political
Atishi. While Singh is a leader affairs committee of AAP,
in the state unit of the BJP, Atishi has served as an advisor
Chopra is the daughter of Con- to the education minister and
AAP’s candidate from Kalkaji constituency, Atishi, campaigns at gress Delhi president Subhash has worked on key projects to
Sarai Jullena area in New Delhi on Monday. PRETIKA KHANNA/MINT Chopra, who has represented revamp the education system
the constituency thrice. AAP in the national capital.
padayatras and one public ment has worked on areas won the seat in 2015, and has “While AAP has done good
meeting. Similar events have which were ignored for years in decided to replace its sitting work in schools, the BJP is
been planned till the end of Delhi. Our campaign is based candidate in the constituency. more powerful in the Centre.
campaigning on Thursday. on work,” Atishi said. Atishi contested elections for The Congress candidate is a
“This election we are going Kalkaji, in South Delhi, the first time in the 2019 Lok local. We want that whoever
to the people with the work that accounts for approximately Sabha elections from East comes here works to give us
we have done in five years in 200,000 voters who include Delhi where she was defeated better facilities,” Sonia Tiwari,
education, electricity, water, residents of jhuggi jhopri colo- by Gautam Gambhir in a sweep a 40-year-old housewife and
health. The five-year govern- nies and low-income areas. by the BJP. resident of Sarai Jullena said.