Live Mint 19 Aug 2020 PDF

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WEDNESDAY, AUGUST 19, 2020

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mint primer
QUICK EDIT
Gold imports are Chinese
rising on renewed checkers
investor interest There were 357 names on the
list of institutional investors
that participated in ICICI
BY VIVEK KAUL Bank’s recent capital raising
exercise. One of them has
India imported gold worth $1.78 billion in July, an increase of 4.2%
over July last year. This meant a month-on-month increase of 193%. It attracted glares: People’s Bank
is the first time since November 2019 that there has been a year-on- of China, our unfriendly neigh-
year jump in gold imports in value terms. Mint explains what it means. bour’s central bank. It has
invested ₹15 crore, as reported.
Returning to normalcy Not too long ago, it tried to raise
Over the last two decades, the seven highest monthly gold import levels have its stake in another Indian
been clocked in 2011-13, when gold rallied 50%. The yellow metal has rallied close entity, mortgage lender HDFC,
to 37% since the beginning of 2020, and is seeing demand return from July. to over 1%. Both investments
Gold imports (in $ million) are tiny. Yet, they could raise
8,000
eyebrows, given the poor state
7,000
of relations between the two
6,000
3,030.8 countries after a bloody border
5,000 scuffle in June.
1,784.6
4,000 But why should China’s cen-
3,000 tral bank want such thin slices
2,000 of Indian equity? Given the
1,000
sharp deterioration in its ties
0
with the US and Europe, it may
Jan 2010 Jul 2020 be trying to lower its portfolio
Source: Centre for Monitoring Indian Economy risks by spreading investments
across various markets. If this is
Why exactly does India Why have the imports the objective, it should not
1 import so much gold?
India consumes a lot of gold and
2 of gold gone up in July?
As the economy has opened up,
worry us. India has tightened
controls on Chinese inflows in
produces very little of it. In 2018- people have gone back to buying any case, and there is no way
19, India produced just 1,664 kg of gold as they used to. Anticipating Beijing can acquire any direct
gold, while it imported 9,82,711 kg this, the companies that are control of an Indian bank or
of it. Therefore, almost all the gold involved in the gold trade ensured financial entity. There may
consumed in India is imported. that enough gold was available exist other means via shell firms
Imports have remained subdued and, hence, the imports of gold
based in other countries, but
during 2020-21 because of the went up. However, there is slightly
spread of the coronavirus, which more to the uptick in July. Much our regulatory system should
has led to most of the country of the physical gold market had be able to detect anything amiss
being under lockdown, thereby missed out on the gold rally in how banks function. We can
hindering economic activity. In between mid-March and do without needless anxiety.
April and May, the country end-June, due to the restrictions
imported gold worth $2.8 million put in place to contain the spread
and $76.3 million, respectively. of coronavirus. The yellow metal
The figures were $608.7 million in rallied close to 19% during the
June and $1.78 billion in July,
respectively, a significant jump
period. In July, this set of buyers
came back to the market and
MINT METRIC
over the previous months. pushed up demand. by Bibek Debroy
BLOOMBERG
Liu fell down an uncovered well,

3 Are there any other reasons
for an increase in imports?
The price rally in July was also a potential
It might have been his death knell.
reason for the growth in imports. Gold
But plumper than Friar Tuck,
prices rallied by 10.8% in July, leading to a In the rim his stomach got stuck,
further interest in the yellow metal. This
can be seen from the net inflows into gold
A Chinese story that obese is swell.
exchange traded funds (gold ETFs), which
stood at ₹921.2 crore, during the month.
This was the third-highest ever level of
inflows into gold ETFs. QUOTE OF THE DAY
I truly wish the current market
4 What does this mean
for the gold imports?
The highest inflows into gold ETFs
5 How high did imports
of gold go in 2011-13?
If we look at gold imports over the
demand could support the size
were seen in February 2020 and last two decades, the seven highest
of our workforce. Unfortunately,
September 2011. Net investment in monthly import levels were layoffs are a hard but necessary
these two months stood at ₹1,483.3 clocked between 2011 and 2013, a
crore and ₹988 crore, respectively. period in which gold rallied almost
step to align to our new reality,
Gold ETFs entail the need to hold 50%. The yellow metal has rallied preserve liquidity and
physical gold against the money close to 37% since the beginning of
that is invested in them. As such, the year but hasn’t seen the kind of
position ourselves for
net inflow into these funds interest from investors as it did return to growth.
increases the demand for gold, back then. The spread of
which leads to higher imports. coronavirus and the ensuing
Investment into gold ETFs has lockdowns might just be one
increased, but the physical reasons for the lack of interest.
demand for gold has been lower DAVE CALHOUN
than the last time that the yellow Vivek Kaul is the author of CHIEF EXECUTIVE
metal rallied. Bad Money. OFFICER, BOEING
m MINT SHORT
Elon Musk is now the world’s 4th-richest person

GETTY
Bloomberg aire who only two years ago was sued by
feedback@livemint.com the US securities and exchange commis-
sion and had to resign as chairman of the
E
lon Musk’s financial upswing electric-car maker over rogue tweets.
shows no signs of slowing. Tesla shares are up 339% this year,
The outspoken entrepreneur is fuelled by growing anticipation that the
now the world’s fourth-richest person company will be included in the S&P
after Tesla Inc. shares surged 11% on 500 Index.
Monday, closing at a record high and Elon Musk’s fortune has grown by $57.2 Musk’s Space Exploration Technolo-
boosting Musk’s net worth by $7.8 bil- billion this year. gies Corp., or SpaceX, is poised to poten-
lion. The rise vaulted the Tesla tially pad his fortune further. Musk’s for-
co-founder past French luxury tycoon him within $15 billion of Mark Zucker- tune has grown by $57.2 billion this year,
Bernard Arnault, the wealthiest non- berg, No. 3 on the ranking of the world’s the second-biggest increase on the
American on the Bloomberg Billionaires 500 richest people. Monday’s Tesla rally index after Amazon.com Inc. founder
Index. Musk’s $84.8 billion fortune puts is just the latest triumph for the billion- Jeff Bezos’s.
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FLIP SIDE
T
U RA L E
O
Y SV
N E W m
Mint Lite
A daily wrap of news and views, opinions and talking points to start your day
WITH JUST a month to go for IPL 2020, the cricket league finally announced its title sponsor. Fantasy gaming unicorn
Dream11 won the rights with a bid of ₹222 crore for this edition. For a gaming startup, IPL is the biggest money spinner, and
the Mumbai-based platform comes in after Chinese phone maker Vivo, which had signed ₹440 crore for the same rights,
exited following the Galwan Valley face-off and deterioration in India-China ties. But it might be hard to keep China out
of the game—Dream11 counts China’s Tencent among its big investors. For more national and world news, here’s Mint Lite.
THE TOLL OF FLOODS

THE GODAVARI has been rising by the hour as heavy rains
continue in Telangana and Andhra Pradesh. Over 150 villages in
West and East Godavari districts are marooned or inundated.
The India Meteorological Department has forecast heavy rain
till 20 August, but the economic impact of flooding has not yet
been estimated though many parts of India have been affected
for weeks. In Bihar, 8 million people have been displaced as the
Ganga continues to rise, and 15 districts of Uttar Pradesh are
affected. Odisha has been battered by heavy rainfall for the past
month. Nepal and China are also experiencing unprecedented
floods. In China, water is crashing against the feet of a 1,000-
year-old giant Buddha sculpture (in photo) in Sichuan province
as the Yangtze has burst its banks. Since June, severe floods
have been affecting life in China, resulting in $26 billion worth
of economic damage.
BIG WEALTH FUND, LARGE LOSS

THE WORLD’S biggest wealth fund lost $21 billion in the first
six months of 2020 as covid-19 ravaged returns. Norges Bank
Investment Management, Norway’s sovereign wealth fund, lost
3.4% in H120, its deputy CEO Trond Grande (in photo) said on
Tuesday, adding that it has managed to break even for the year
so far. The fund was set up in the 1990s to invest Norway’s oil
income into foreign securities. Earlier this year, it started asset
sales for the first time to cover the government’s need for
stimulus cash. Withdrawals touched $19 billion in the first half
and it has so far relied on bond sales to cover the cost. The fund
held almost 70% in equities, which have been volatile this year.
Its tech holdings—in Amazon, Apple, Microsoft and Alphabet,
all of which reported good quarterly earning—have helped
shore up its fortunes, but investments in oil and gas companies
pulled it down.
WIN FOR ENVIRONMENT Copper production falls

Domestic refined copper production Copper exports
IT’S A win for those fighting for a clean environment,
1,000,000
but for the economy, the Madras High Court order to
(In tonnes)
refuse the Sterlite copper smelting plant in Tamil
Nadu to restart could be a setback. The 400,000- 800,000
tonne plant was shut in 2018 over environmental law

violations. Surveys found high levels of copper, lead, 600,000
cadmium, arsenic, chlorides and fluorides in ground-
water around the plant, and residents led protests. 400,000
Since the closure, India’s copper production has
declined significantly, a mines ministry report says.
200,000
Sterlite, Hindalco and Hindustan Copper are the main
refined copper producers. In FY19, due to the closure,
NA
domestic copper production fell 46%, and exports slid. 0
FY17 FY18 FY19 FY20*
India turned a net importer in FY19. It’s a ruling that
*Production data estimated; export data not available Source: Ministry of Mines
could force companies to follow pollution norms.
SARVESH KUMAR SHARMA/MINT
IT’S NOT THE TIME TO PARTY

THREE MONTHS after covid-19 made a reappearance in
Wuhan, where the outbreak was first detected in December,
thousands of people threw caution to the winds and gathered at
an open-air water park for an electronic music festival, without
masks or other precautions. It’s the kind of party scene that’s
inconceivable in many parts of the world still grappling with the
virus that has infected over 21 million people. Nations like
Spain, South Korea and Greece have restricted nightlife again
after a second wave of infections. In India, new cases are still at
over 50,000 a day. Worldwide, governments and experts have
been warning against parties and large gatherings. In Wuhan, a
city of 11 million that imposed a strict 76-day lockdown till early
April, life has gradually been returning to normal. When new
cases were detected in May, authorities tested 6.5 million
people in 10 days, and new cases haven’t been reported since.
DEPRESSION ON THE RISE

SINCE THE covid-19 outbreak hit India in March, forcing
people to stay at home, depression has risen 43%. A survey
covering 10,000 people, by healthcare platform GQii, found
that 26% of respondents suffered from mild depression and 6%
showed severe symptoms. Mental health issues are on the rise
across the world, as isolation and worries over uncertainty and
financial instability continue to grow. In the UK, the Office of
National Statistics has said the number of adults experiencing
depression has doubled since March. One in five adults in a
3,500-person study was likely to be experiencing depression in
June compared with before the pandemic. While all age groups
experienced depression, young adults were more susceptible
with one in three of them showing moderate to severe
symptoms, it said. Women and the disabled as well as those
working in essential services were more prone to depression.
Curated by Shalini Umachandran. Have something to share with us?

Write to us at businessoflife@livemint.com or tweet to @shalinimb
PEANUTS by Charles M. Schulz

MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 3 NO. 200 Rs 6.00 16 PAGES
ORACLE IN THE RUNNING FOR INVESTING IN AI AND DATA IS

WEDNESDAY, AUGUST 19, 2020
LIVEMINT.COM
TIKTOK’S US BUSINESS uP9 CRUCIAL FOR INDIA: PREMJI uP9
Gaming firm wins Setback for Vedanta as HC rejects Court bar on DON’T MISS
Emami new INDIA IN TALKS TO
plea to reopen Sterlite plant in TN brand plan

RESUME FLIGHTS
dream IPL deal

India is in talks with 13
countries to resume
REUTERS
international flights under
Sharan Poovanna tainability of a highly polluting Suneera Tandon bilateral air bubbles, civil
sharan.p@livemint.com industry, and the only consid- suneera.t@livemint.com aviation minister Hardeep
BENGALURU eration would be with regard to NEW DELHI Singh Puri said. >P6
Dream11 bags title sponsorship rights after Vivo exits safeguarding environment for
T T
he Madras high court on posterity and remedying the he Bombay high court on
m MINT GRAPHITI Tuesday rejected damage caused.” Monday temporarily RCOM BANKS FOR
Saumya Tewari Vedanta Ltd’s petition to The Sterlite verdict is likely restrained consumer SPECTRUM SALE
saumya.t@livemint.com
NEW DELHI
BETTING BIG reopen its copper smelting
plant in Thoothukudi (Tutic-
to have far-reaching conse-
quences on the fate of similar
goods maker Emami Ltd from
using the mark ‘Glow and Financial creditors of
Online fantasy sports platform outbid edtech platforms Byju’s bankrupt RCom told the
orin), about 610km from Chen- All 10 pleas challenging TN’s establishments across the Handsome’ in its grooming, Supreme Court that the
F
antasy gaming plat- and Unacademy to win the title sponsorship rights of IPL 2020. nai, in a verdict that upheld the closure order of Vedanta’s country and bolster the fight of skincare and cosmetic prod- department of telecom’s
form Dream11 on importance of the environment plant were also dismissed . ucts, in a relief for Hindustan trading rules allow
Tuesday won the title IPL will be held Dream11 over economic considerations. Unilever Ltd (HUL), India’s
TITLE SPONSOR TURN TO PAGE 3 spectrum sale. >P5
sponsorship for the between 19 Sep AND AMOUNT ₹222 cr Setting a precedent for other nam and Justice V. Bhavani largest packaged goods firm.
upcoming Indian Pre- and 10 Nov in the polluting industries, the ver- Subbaroyan, said “economic After HUL decided in June to
UAE this year PERIOD OF Between 18 Aug Ruling may lead to stricter
mier League (IPL) for ₹222 SPONSORSHIP and 31 Dec
dict, delivered via video confer- considerations can have no role adherence to norms >P3 SAVING SPICEJET A
crore, almost half of what encing by Justice T.S. Sivagna- to play while deciding the sus- TURN TO PAGE 11 DAUNTING TASK
India’s cricket board would DREAM11 has COMPANIES THAT SUBMITTED
EXPRESSION OF INTEREST SpiceJet co-founder Ajay
have got had Chinese phone been an associ-
Tata Sons, Patanjali Ayurved, Singh has the challenging
maker Vivo stayed as the title ate sponsor of Reliance Jio, Byju's, Dream11
IPL for two years and Unacademy task of ensuring that the
sponsor. airline conserves cash
PREVIOUS SPONSORSHIP amid the crisis caused by
TURN TO PAGE 11
Dream11 wants to become

LEADING contender
for the title sponsorship
Tata Sons pulled out at
SPONSOR
Vivo* ₹440 cr
AMOUNT
per year
India may privatize Delhi assembly the pandemic. >P6
the last moment *The previous contract was for 5 years

a major sports brand >P11 and Vivo still has three years left.
SARVESH KUMAR SHARMA/MINT

more of its airports readies FB notice GLOBAL COs SKIP
SOCIAL MEDIA ADS
The Indian arms of firms
Gireesh Chandra Prasad & Pretika Khanna like Unilever, Coca-Cola
“We are going to the cabinet and Diageo, continue to
Pretika Khanna tomorrow with further airport
privatization plan. We have
pretika.k@livemint.com
NEW DELHI
BJP slams avoid advertising on
social media platforms
PharmEasy to merge with Medlife NEW DELHI got many more airports lined
Cong move such as Facebook. >P9
T
up—dozens of them,” Puri said he Delhi legislative
I
ndia plans to privatize more at a webinar organized by the assembly on Tuesday
airports as it seeks to accel- Confederation of Indian began finalizing plans to Anuja & Gyan Varma ‘RURAL RECOVERY
Salman S.H. & Tarush Bhalla ing to a joint filing with anti- startups during the strict erate efforts to boost infra- Industry (CII) on Tuesday. move against Facebook after NEW DELHI UNDER THREAT’
BENGALURU trust regulator Competition nationwide lockdown this year. structure development. “And the 100 more airports one of its committees said it has Demand recovery in rural
T
Commission of India (CCI). Much like e-commerce A plan to offer additional that we will build between received complaints against he Bharatiya Jan- India shouldn’t be seen as
O
nline medicine and The proposed deal indicates marketplaces, dominated by airports for operations to pri- now and 2030, I think, will all officials of the social media ata Party opposed a harbinger of economic
healthcare products early signs of consolidation in the duopoly of Flipkart and vate firms will be placed before augur well (for the economy).” platform over their alleged Congress leader revival, said SBI’s group
retailer PharmEasy the e-pharmacy segment, Amazon, a spate of mergers the Union cabinet on Wednes- Prime Minister Narendra reluctance to take action chief economic adviser
Soumya Kanti Ghosh. >P6
has proposed a merger with its which, along with edtech plat- day, civil aviation minister TURN TO PAGE 11
smaller rival Medlife, accord- forms, has outperformed most TURN TO PAGE 7 Hardeep Singh Puri said. TURN TO PAGE 11 TURN TO PAGE 11
02 WEDNESDAY, 19 AUGUST 2020

MUMBAI
PLAIN
FACTS
INDIA MOVES UP EM LEAGUE TABLES

Its rise in ranks is powered by the surge in financial flows to the country but it remains to be seen if economic activity picks up to justify that optimism
Nikita Kwatra &
m MINT EMERGING MARKETS TRACKER INDICATOR DESCRIPTIONS
indicators, such as the manu- The composite index score is a
Mint’s Emerging Markets Tracker provides a summary of economic activity across 10 large emerging markets based on seven high-frequency
Sneha Alexander facturing purchasing manag- Better performance normalized score based on an
indicators. In July, China topped the list with a composite score of 81, followed by Brazil with a composite score of 70. Mexico came in last, equally weighted average of
ers’ index (PMI) and real gross while India came in at the third spot. normalized scores for each of the
MUMBAI domestic product (GDP) Exchange rate Stock market indicators. In calculating the
Composite Real GDP growth PMI Export growth CPI inflation Import cover normalized scores, the
growth, besides financial met- Country movement capitalization best-performing economy's value
index score (y-o-y, in %) manufacturing (y-o-y, in %) (y-o-y, in %) (no. of months)
F
(m-o-m, in %) (m-o-m, in %) on any one parameter (say PMI) is
or the first time since rics, such as exchange rate CHINA taken as 100 and relative scores
3.2 51.1 7.1 2.7 19.6 1.1 15.3
covid-19 was declared movements and changes in
a global pandemic in stock market capitalization. 81 are derived based on the distance
of each economy from that score.
The purchasing managers' index

March, India found The final rankings are based (PMI) manufacturing data
itself among the top on a composite score that gives BRAZIL -0.3 58.2 -2.9 2.3 27.3 -1.6 5.2 compiled by IHS Markit is a
three emerging markets in equal weightage to each indi-

July, the latest update to Mint’s cator.
70 weighted average of five indices:
new orders (30%), output (25%),
employment (20%), suppliers’
delivery times (15%) and stocks of
emerging markets tracker The improvement in India’s INDIA 18.8 7.7
purchases (10%). A PMI reading
59 3.1 46 -10.2 6.9 1 above 50 indicates an expansion

shows. After lingering near the financial metrics come at a in manufacturing activity, whereas
a reading below 50 indicates a
bottom of the emerging mar- time when India’s real sector contraction.
ket rankings for three months, metrics are yet to recover fully.  Export growth has been
India moved up three notches Corporate earnings in the TURKEY 4.5 56.9 15.7 11.8 2.8 -0.9 8.3
to the middle of the league June quarter touched multi-
tables in June. In July, it year lows. India’s PMI for man-
58 computed in terms of y-o-y %
change in dollar values of exports
for each economy.
 CPI inflation is scored based on

moved up two notches further ufacturing slipped in July MALAYSIA 50 5.9 -1.9 0.2 4.1 the deviation from zero. Inflation
to the third spot,
just behind China The pace of
(46.0) after a
rebound in June
52 -17.1 6.9 closer to zero is scored higher.
High negative or positive inflation
is scored lower.
and Brazil, driven recovery in (47.2), showing Exchange rate movement denotes
by a booming economic activity the impact of PHILIPPINES -16.5 48.4 -13.3 2.7 15.1 1.3 -1.3 the percentage month-on-month
stock market and

an outperform-
will depend to a localized lock-
downs on manu-
46 (m-o-m) change in the exchange
rate of the national currencies with
respect to the dollar. Negative
values indicate depreciation.
large extent on
ing currency. facturing activity INDONESIA -5.3 46.9 2.3 1.5 11.4 -3 0.4 Stock market capitalization
India’s ability to
India’s average
market capitali-
in the country.
contain covid-19 Even as India’s 45 denotes the month-on-month
change (in %) in the aggregate
market value of all stocks traded
in the economy, as reported by
zation increased manufacturing Bloomberg.
7.7% to $1.9 tril- contracted last THAILAND -12.2 45.9 -23.2 -1.0 15.9 -0.8 -1.6
lion in July from $1.7 trillion in month, other large emerging 39
June as foreign investors markets, such as Brazil (58.2), The closest comparable periods have
poured $1.2 billion into local Turkey (56.9) and China (51.1), RUSSIA -8.5 48.4 -25.9 3.4 33.6 -3.1 -4.5
been considered for all economies. For
equities during the month. reported expansion. India’s

The gush of foreign inflows, PMI reading was better than
38 real GDP growth, seven countries have
reported data till April-June. Data for
India, Brazil and Turkey are of
January-March. For other indicators,
which continues in August that of only two emerging data is as of July, and where that is
MEXICO -18.9 40.4 -12.8 3.6 6.4 -0.3 -1.0 unavailable, it’s as of June.
also boosted the local currency markets considered in the
at a time when most emerging tracker—Thailand (45.9) and 29 Data as of 17 August 2020
market currencies depreci- Mexico (40.4). Trendlines start from June 2018 Source: Bloomberg
ated against the dollar (see After reporting a trade sur-
chart). plus in June, India’s trade bal- AHMED RAZA KHAN/MINT
Mint’s Emerging Markets ance slipped back to deficit in ter exports than India did dur- higher stringency of lockdown all emerging market peers, may be transient. the past few weeks, a 17 August nomic activity will depend to a
Tracker, launched last Sep- July as gold imports shot up. ing last month. measures in the country for barring Turkey, where infla- The growth challenge is report by Sonal Verma and large extent on India’s ability
tember, takes into account India’s export performance India’s GDP growth in the most of the June quarter. tion was in double digits. more significant. It remains to Aurodeep Nandi of Nomura to contain the pandemic. As
seven high-frequency indica- appears better than that of March-ended quarter (3.1%) Meanwhile, retail inflation The expectations of a sharp be seen how far the pick-up in noted. Nonetheless, the recov- Mint’s State Economy Tracker
tors across 10 large emerging many other emerging markets was higher than most peers’ in India increased to 6.9% in contraction in India’s GDP, real economic activity justifies ery is uneven, and there is a for July showed, states which
markets to help us make sense so far, but it is worth noting and has helped India’s overall July, way higher than the along with rising inflation, the optimism shown by the risk of “reversal in momen- have been able to contain the
of India’s relative position in that export data for July is ranking. But it is likely that the Reserve Bank of India’s upper may have raised the spectre of financial markets. Even tum” from a second wave of pandemic better have also wit-
the emerging markets league available only for India, and June quarter will be far worse tolerance level of 6%, due to stagflation, but the weakness though the mobility level covid-19 cases, the economists nessed a sharper economic
table. The seven indicators two other countries—China for India than some other supply disruptions. At 6.9%, in domestic demand suggests remains below pre-pandemic warned. recovery.
encompass both real activity and Brazil, both reporting bet- countries, given the relatively retail inflation was higher than that inflationary pressures levels, it has been rising over The pace of recovery in eco- nikita.k@livemint.com
m BUSINESS TWITTER DASHBOARD Spending amid low interest rates still risky
The Mint Business Twitter Dashboard aims to capture social media conversations and narratives of top Sneha Alexander historic highs.
Indian and global business leaders. The 20 business leaders featured here have been selected based on
their business clout, Twitter activity, and Twitter following.
sneha.a@livemint.com When the interest rate–
MUMBAI growth (r-g) differential is neg-
Tweets and retweets Followers (in mn) ative, debt-to-GDP ratio is
A
Most retweeted Last Weekly Last Weekly negative interest rate– expected to decline, making
Business leader Company topic week change week change growth differential public debt more sustainable.
INDIAN BILLIONAIRES since the 2008 finan- Countries consider this a
cial crisis could tempt govern- favourable time for fiscal
ANAND MAHINDRA Mahindra ments to spend more. How- expansion. However, the study
Group
Cute rendition of Indian national anthem 37 -8.1% 8.05 0.2%
anandmahindra ever, such a step could be risky finds that historically periods
NANDAN NILEKANI Infosys Women leaders defying ageism during the pandemic 2 -50.0% 2.54 0.0% for countries with higher debts with negative r-g differentials
NandanNilekani as the differential could well were short-lived when debts
HARSH GOENKA turn positive were high. Fiscal expansion could lead to unsustainable debt levels for
RPG Group Learning does not end with one book 116 25.0% 1.58 0.0%
hvgoenka again, research m SNAP FACT Countries with countries with high public debts, especially at a time when they
KIRAN MAZUMDAR-SHAW Biocon warns. higher debts are vulnerable to negative shocks from covid-19. HT
New Zealand, Fiji go 100 days without covid case 85 -28.2% 1.54 0.0%
kiranshaw In a working return faster to a
UDAY KOTAK Kotak Mahindra paper published by the Inter- positive r-g differential, the result in interest rates shoot- rent scenario, when countries
Bank NA 0 NA 1.06 0.0% national Monetary Fund, authors find. Those with high ing up by 155 basis points, the are vulnerable to negative
udaykotak
HARSH MARIWALA economist Weicheng Lian and public debt suffer in both good paper finds. As a result, shocks from the covid-19 pan-
Marico Video of peacock taking flight 34 -8.8% 0.88 0.0%
hcmariwala others examine trends of and bad economic situations, increased borrowing costs can demic, expansionary policies
interest rates, growth and pub- they say. limit a country’s fiscal capacity hold the risk of reversal to a
VIJAY SHEKHAR SHARMA Paytm Maya Harris on sister Kamala running for USA VP 29 72.4% 0.38 0.0% lic debt of 17 advanced econo- Exposure to negative to support growth. positive r-g gap and, thereby,
vijayshekhar
mies since 1950. Using the growth shocks can be more The authors conclude that unsustainable debt levels.
GAUTAM ADANI data, the paper says fiscal worrisome for countries with a fiscal expansion in times of Also read: The risks of high
Adani group Wishing happy Independence Day 2 50.0% 0.26 0.0%
gautam_adani
expansion is risky because higher share of foreign cur- negative r-g differential needs public debt despite a low inter-
SACHIN BANSAL even before the covid-19 pan- rency debt. Even a growth rate to take into account the debt est rate environment
Navi Wishing happy Independence Day 0 NA 0.20 0.0%
_sachinbansal
demic, public debts were at 1% slower than expected can levels. Especially in the cur- (bit.ly/347AmlG).
NIRANJAN HIRANANDANI Hiranandani
Group Hardeep Puri wishing happy Independence Day 34 -20.6% 0.01 0.0%
N_Hiranandani
GLOBAL BILLIONAIRES
BILL GATES Gates 1 billion students affected by covid school closures 4 75.0% 51.41 0.1%
BillGates Foundation
ELON MUSK Tesla Tesla computer to process large amounts of video data 66 -12.1% 37.69 0.6%
m NEWS IN NUMBERS CORRECTIONS AND
elonmusk CLARIFICATIONS
AP
MICHAEL BLOOMBERG Bloomberg Endorsing Kamala Harris as Democrat pick for USA VP 14 42.9% 2.74 0.0% 2 6 Mint welcomes comments,
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masason Why is it important: Originally scheduled tennis players in
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Dell Dell and Konica Minolta make moving X-rays a reality 13 -69.2% 0.65 0.0% newsroom to any errors in the
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to former president Evo Morales. He had important? This
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NEWS WEDNESDAY, 19 AUGUST 2020

MUMBAI 03
Sterlite Copper’s closure HC rejects

mint
SHORT TAKES plea to reopen

People’s Bank of China picks up
stake in ICICI Bank via QIP issue
New Delhi: After picking up a stake in housing finance major
will deter violators: experts Vedanta plant
FROM PAGE 1
HDFC, the Chinese central bank People’s Bank of China has green activists for stricter com-
acquired a very small stake in ICICI Bank through the recently pliance with environmental
closed ₹15,000 crore share sale by the country’s second largest laws. It is also likely to set a
private sector lender. The People’s Bank of China was among 357 HC detailed violations that include copper slag management, ground water pollution precedent for such disputes in
institutional investors which included domestic mutual funds, the future.
insurance companies and global institutions that subscribed to At the heart of the dispute is
the issue, officials said. According to officials, the Chinese central Tanya Thomas a 400,000 tonne-capacity
bank has picked up shares worth ₹15 crore in ₹15,000 crore quali- tanya.t@livemint.com Sterlite Copper smelting plant,
fied institutional placement (QIP) issue. PTI MUMBAI owned by Vedanta.
The company shut the
T
he Madras high court’s smelter for maintenance in
Government jobs in MP only for New U.S.
curbs
decision on Tuesday to March 2018 and later extended
keep the Vedanta Ltd- the closure as locals protested
local residents: CM Chouhan threaten
Huawei’s owned Sterlite Copper against the pollution caused by
HT
smartphone plant in Thoothukudi the plant. Police fired on the
crown and permanently closed may prompt protesters in May that year kill-
hit suppliers
companies to meet pollution con- ing 13 people. Widespread
bit.ly/3h7G9eN trol norms, legal experts and indus- anger against the police action
try consultants said. prompted the Tamil Nadu gov-
Sterlite Copper, a unit of billion- ernment to shut the plant.
aire Anil Agarwal’s Vedanta group, “The verdict comes as an
ran a 400,000 tonne-capacity cop- utter shock to employees of
per plant in Thoothukudi. The Sterlite Copper and the thou-
company’s planned expansion of sands of small businesses,
the plant was opposed by locals in entrepreneurs, and commu-
May 2018. In the ensuing protests, nity members dependent on
13 people lost their lives in police our continued operations,”
Bhopal: Madhya Pradesh chief minister Shivraj Singh firing. Protests against the plant began when the company announced that it would double the plant’s capacity to Pankaj Kumar, chief executive
Chouhan on Tuesday said necessary legal provisions will “Alarms are beginning to go off 800,000 tonnes at an estimated investment of ₹2,400 crore. REUTERS of Sterlite Copper, said after the
be made to ensure that only local people get jobs in the state now and there is much more pres- judgment.
government. He also said that resources of the state are sure on corporates to adhere to country’s demand for refined cop- is damage to the local environment, They have to understand that they All 10 petitions challenging
meant for residents of the state. “The state (BJP) govern- environmental safety, not just in per. The protests began when the the local community takes this up have to earn the trust of the com- the state’s closure order of the
ment has taken an important decision today that govern- managing risks at present such as in company announced that it would first, followed by activists. Then munities in which they operate” Sterlite Copper plant and other
ment jobs will be given only to youths of Madhya Pradesh. waste management and water man- double the plant’s capacity to politicians get interested, after Jayaram said. alleged violations filed by
We are making necessary legal provisions for this purpose. agement, but also in looking at sce- 800,000 tonnes at an estimated which it becomes part of regula- The 800-page high court order Vedanta were also dismissed.
Resources of Madhya Pradesh are meant for the children narios in future that can details several violations, Vedanta said it will seek legal
of the state,” Chouhan said in a video statement. He, how- precipitate risks like cli- ECO-FRIENDLY APPROACH including on disposal of recourse in the matter.
ever, did not elaborate on the proposed legal provisions.PTI mate change and start pre- copper slag, on effluents The court also looked into
paring for them,” said San- THERE is a lot more FIRMS would also THERE is always a lag IT is high time that and heavy metals leaching orders and verdicts passed against
tosh Jayaram, partner and pressure on
corporates to stick
have to look at
scenarios in the
between the protests companies take note into groundwater, solid
against a business of this pressure
the company’s operations in Goa,
SC reserves judgement on UGC’s head, sustainability and to environment future that can and the regulations before regulation waste management, and Maharashtra and Odisha, which it
corporate social responsi- safety norms monitoring air quality. The said “is of relevance while adjudg-
final-term examination guidelines bility, KPMG India.
precipitate risks catching up hits them hard
court also censured the ing the credibility of the petitioner
New Delhi: The Supreme Court on Tuesday gave states West A December 2018 order state government and the and its commitment towards (the)
Bengal, Maharashtra, Odisha, and Delhi, and the University by the National Green Tribunal, investment of ₹2,400 crore. tion. This is the history of any law Tamil Nadu Pollution Control environment.”
Grants Commission (UGC), three days to submit written argu- which allowed the reopening of the There is always a lag between the on sustainability—for instance, the Board for failing to monitor waste The verdict comes at a time
ments supporting their stand that the final year examination plant, was set aside by the Supreme societal uprise against a business rules on managing hazardous disposal at the plant. “The regulator when the centre and many
should not be imposed on students during the pandemic. A Court in February 2019. operating in a certain community waste. So it’s high time that compa- failed to do its job and on account of state governments have
three-judge bench comprising Justices Ashok Bhushan, R. Sub- Until the year ended March 2018, and the regulatory framework nies take note of this pressure its default, the petitioner cannot be assured businesses speedy
hash Reddy and B.R. Gavai concluded the hearing, following a the Sterlite plant met a third of the catching up, Jayaram said. “If there before regulation hits them hard. exonerated,” the court said. clearances and liberalised laws
plea to this effect by the three states and one Union territory, but
deferred a judgement on the issue. JAPNAM BINDRA
Read more on livemint.com
Deloitte India acquires marketing

advisory firm Spatial Access Govt begins talks with e-commerce firms to promote local products
New Delhi: Deloitte Touche Tohmatsu India LLP announced
the acquisition of advertising and marketing advisory and analyt- Tarush Bhalla ing geographical indication that correspond to a specific expected to be presided over by “The meeting will be on fig- The person said the govern-
ics firm Spatial Access on Tuesday, to enhance its advisory capa- tarush.bhalla@livemint.com (GI) products to provide visibil- geographical location or origin, the DPIIT joint secretary, will uring out a standardized prac- ment wants to help these man-
bilities and enable brands to make more efficient advertising and BENGALURU ity to locally produced items. including a certain town or also discuss ways to promote tice of listing these products on ufacturers and sellers move to a
marketing (A&M) decisions. Founded by veteran advertising pro- The government is expected region in India. These include and market the selected GI e-commerce platforms, and self-serve model, where they
T
fessional Meenakshi Menon in 2003, Mumbai-based Spatial he commerce and indus- to meet this week executives Darjeeling tea, Coorg Arabica products to increase their visi- digital literacy, which is needed can leverage online commerce
Access offers audit and advisory services across a wide range of try ministry and the from these e-commerce firms coffee and Kashmiri saffron, to bility and awareness. to be provided to manufactur- independently to boost sales.
marketing spends covering media, print and film production, Department for Promo- to discuss and identify GI prod- name a few. India has regis- The government will also ers, sellers and cooperative A second person said the
besides public relations, events, and analytics. LATA JHA tion of Industry and Internal ucts that have maximum tered 361 GI products, as of discuss with e-commerce plat- societies manufacturing and government will also ask the
Read more on livemint.com Trade (DPIIT) is expected to demand in the market for a March 2020. forms the training and orienta- selling these geographical indi- online retailers to add respec-
ask top online retailers such as “pilot project”, said four people GI products were earlier sold tion of sellers of GI products for cation products,” said one of tive logos on online listings of
Flipkart, Amazon and Snapdeal aware of the discussions. largely through offline retail. their listing, shipping as well as the people cited above, who these products for greater visi-
ADB approves a $1 billion loan to focus on listing and promot- GI tag is used on products The meeting, which is exports. didn’t want to be named. bility.
for Delhi-Meerut RRTS project
AFP
New Delhi: Philippines-based Asian Development Bank

(ADB) on Tuesday approved a $1 billion loan for construc-
tion of the modern, high-speed Delhi-Meerut Regional
Rapid Transit System (RRTS) in India. The RRTS project
aims to build network of high speed commuter rail lines
connecting Delhi with cities in the adjoining states. The
82-kilometre Delhi-Ghaziabad-Meerut RRTS will be
implemented in phases between the cities. The trains will
reduce travel time from Delhi to Meerut to less than an
hour. The financing for the project will be implemented in
four tranches between August 2020 and May 2025. The
government will provide $1.89 billion and co-financiers are
expected to provide $1 billion of the total project cost of
$3.94 billion, an official statement said. SHREYA NANDI
After KKR and L&T Fin, Yes Bank

sells CG Power shares worth ₹76 cr
Mumbai: Private sector lender Yes Bank Ltd on Tuesday, off-
loaded 5.18 crore shares or 8.27% equity stake in CG Power and
Industrial Solutions Ltd for ₹76 crore, via open market transac-
tions, joining other institutional investors such as private equity
firm KKR and L&T Finance, who have sold shares in the past two
days. Yes Bank sold 2.38 crore equity shares in the company at
₹14.66 per share on the BSE, and 2.8 crore shares at ₹14.6 per
share on the NSE, valuing the transactions at ₹75.81 crore, the
bulk deals’ data showed. ASHWIN RAMARATHINAM
Goldman Sachs backs engineering

services company Infostretch
Mumbai: Goldman Sachs’ merchant banking division and pri-
vate equity firm Everstone Group on Tuesday signed a definitive
agreement to acquire a significant stake in digital engineering
services firm Infostretch, the company said. The investment will
help the company expand its digital engineering service offerings
for both enterprise and digital native companies and accelerate
growth. Financial terms of the announcement were not immedi-
ately disclosed. SWARAJ SINGH DHANJAL

MUMBAI
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
38,528.32 1.26 11,385.35 1.23 9,382.05 1.23 27,667.65 1.16 11,541.95 1.22 14,656.68 1.13 14,154.01 1.30
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN
38,050.78 38,084.70 11,247.10 11,259.80 9,267.90 9,286.10 27,351.45 27,442.40 11,402.85 11,419.20 14,492.30 14,551.13 13,972.11 14,016.82
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW
38,571.23 38,062.01 11,401.70 11,253.15 9,392.75 9,282.10 27,711.10 27,426.70 11,556.85 11,412.85 14,677.73 14,524.03 14,166.52 14,013.98
Potential lawsuit is an irritant for

mint
SHORT TAKES
Economic recovery hit by
rise in Europe’s virus cases
As the number of confirmed covid-19 cases rises
in some European countries, economic activity
HDFC Bank; no big damage seen
has turned, according to Bloomberg Economics
gauges that integrate high-frequency data such as Aparna Iyer bureau Experian PLC. Class action Investors here won’t be entirely
credit-card use, travel and location information. aparna.i@livemint.com lawsuits tend to dent investors’ trust. wrong in ignoring Rosen’s move for Against HDFC Bank Nifty Bank
135
In the first two weeks of August, activity declined HDFC Bank’s American Depository now. Class action suits against Infosys the odds
D
in countries with renewed outbreaks, such as uring times of stress, Receipts listed on NYSE fell 2.8% on Ltd, one of which was filed by this HDFC Bank shares 130
Italy, France and Spain and the recovery HDFC Bank has been Monday in reaction to the lawsuit same firm, were dismissed earlier. In have been resilient 122.6
125
remained sluggish in Germany, Sweden and Nor- In ‘good able to show stellar per- news, a sign that at least foreign fact, the company got a clean chit despite the ongoing
news for scrutiny over its 120
way. The UK, the US, and Canada are still very far bulls’, Nifty
formance in the past. But investors are on the edge. from the Securities Exchange Com-
below their “normal” levels of activity, but perhaps this time, the The story with domestic bourses is mission on a whistleblower case. vehicle loans
finally takes 115
recently have been catching up to the European bank has got trouble around the cor- different though. HDFC Bank shares HDFC Bank’s version is that it has business.
out 11,350
110
countries leading the recovery. BLOOMBERG bit.ly/31767JG ner that it may find difficult to dodge. have hardly budged here. Analysts dealt with the lapses in its vehicle 115.8
Misgivings about its finance unit. Chief Base value taken as 100
105
vehicle finance verti- MINOR HICCUPS executive Aditya Puri
100
cal and its apparent had assured sharehold-
Mass exit delays in sharing HDFC Bank’s ADR ANALYSTS highlight HOWEVER, markets ers in the annual gen- 95
Foreigners have sold out the most from Indian information to a credit fell 2.8% in response
to the lawsuit news,
that past class action shouldn’t ignore its
cases have not lapses, especially the
eral meeting that an 90
corporate and government bonds this year. bureau are quickly but its shares hardly seen any drastic internal inquiry found
ones that could
FII outflows year-to-date (in $ bn) morphing into a class budged here negative outcomes impact asset quality some employees guilty Source: Bloomberg
85
31 Mar 2020 18 Aug 2020
South Korea 42.3 action lawsuit. US law of personal misconduct
firms Rosen Law Firm and action was taken. SATISH KUMAR/MINT
China 40.4 and Schall Law Firm have announced point out that past class action law- Puri also said that the bank continues critical now more than ever given the The outlook for its asset quality too
Philippines 3.9 probes to build a securities fraud lawsuits against Indian firms have not to be process-driven, although stress on retail borrowers. The bank’s has been better than its peers.
suit against HDFC Bank, arguing that seen any drastic negative outcome. human misconduct cannot be com- tardiness is worrisome. It remains to be seen whether the
Malaysia 0.2 the lender misled investors. “This is not a big issue. Lawsuits pletely eradicated. The bank is still the most valuable lawsuit will bring enough trouble for
-7 Indonesia Two issues highlighted by Rosen don’t always end with a penalty; some That leaves the issue of delays in lender in terms of market capitaliza- HDFC Bank or would be a mild irri-
Law Firm were instances of improper of them end in monetary settle- sharing information with credit tion and has a buy rating from the tant at best. Meanwhile, investors
-2.5 Thailand
lending practices at HDFC Bank’s ments,” said an analyst. HDFC Bank bureaus. Here, it is obvious the bank majority of brokerages. Its perform- should not ignore lapses by the bank,
-14.5 India vehicle loans vertical, and delays in said prima facie the lawsuit is frivo- has been less transparent. Informa- ance in terms of growth and asset especially those that have a bearing
Source: Bloomberg
sharing information with credit lous, although it is looking into it. tion sharing with credit bureaus is quality have buttressed its valuations. on asset quality.
SATISH KUMAR/MINT
High yields can’t stop FIIs’

exodus from Indian bonds
Global funds used to clamour for more access to
India’s debt markets. The high-yielding bonds are
Sluggish growth in US biz, high Voltas’s cool Q1FY21 results may well
now the least popular in Asia as the nation strug-
gles to contain the pandemic. Overseas funds
have sold $14.6 billion of Indian corporate and
debt may slow Glenmark shares support stock’s premium valuations
government bonds this year, the most among
emerging-Asian nations, according to data com-
piled by Bloomberg. Indonesia has also seen out- Clifford Alvares Pallavi Pengonda Better sales mix and lower adver- done well in the March quarter as
flows, but almost half that of India, while South clifford.a@livemint.com
Margin boost pallavi.p@livemint.com tising spends helped margin per- well, clocking a revenue growth of
Korea and Malaysia have attracted inflows. “For- While Glenmark’s Q1 revenue growth slipped sequentially due formance. Nonetheless, analysts feel 20%. The division could continue to
to covid-19-led disruptions, cost savings provided a filip to
P V
eigners were already looking at India with caution harmaceutical stocks are operating profits.
oltas Ltd’s unitary cooling it may be tough to sustain the high perform well going ahead. “We
given the worries over higher fiscal deficit,” said abuzz, courtesy the products (UCP) segment margins in coming quarters, as some reckon the UCP segment will drive
Revenue (in crore) Ebitda margin (in %) (Right-hand scale)
Nagaraj Kulkarni, a rates strategist at Standard widespread swing in brought in the surprise factor of the costs start inching up with a recovery and the EMP segment will
3,000 25
Chartered Plc in Singapore. BLOOMBERG sentiment towards them. But 20.4 for the June quarter, boosting the recovery in revenue. remain subdued for the next two
after a sharp jump of 37% in 2,400 2,322.9 20 company’s overall results. The UCP Revenue from elec- quarters,” said analysts
2020, Glenmark Pharmaceu- segment includes air conditioners tromechanical projects Analysts feel it from Kotak Institu-
Gold back to over $2,000 ticals Ltd’s stock may face 1,800 2,344.8 15 and other cooling products. and services (EMP) and may be tough to tional Equities in a
some hurdles. High debt and a 14.7 For the June quarter, UCP’s reve- engineering products report on 17 August.
amid US-China tensions dim US outlook may weigh on 1,200 10
nue fell by 60% year-on-year (y-o-y). and services businesses margins in coming
sustain the high
Voltas’s investors
Gold climbed back above $2,000 an ounce as its prospects. The stock slid Analysts reckon Voltas’s UCP per- decreased by 37% and have little to crib about.
600 5 quarters, as some
renewed tensions between the US and China about 1.2% on Tuesday. formance is better than estimates as 35%, respectively, From its pre-covid
boosted demand for haven assets, and the dollar Revenue growth of about 0 0 well as that of peers. Of course, the y-o-y. The EMP busi- of the costs start highs in February,
weakened. The US administration announced 0.9% year-on-year (y-o-y) this Q1FY20 Q1FY21
lockdown meant business condi- ness posted an Ebit loss inching up shares of Voltas are
Source: Emkay Global Financial Services
further curbs on Huawei Technologies Co. aimed quarter is seen as weak. tions were challenging last quarter. for the last quarter. about 12% lower. But in
at cutting its access to commercially available Besides, growth has also SATISH KUMAR/MINT It is encouraging that Voltas’s UCP Overall, Voltas’s comparison, shares of
chips. The move is the latest tit-for-tat in escalat- slowed in the US and slipped has launched a few products in said analysts. segment saw market share and mar- consolidated profit halved for the Blue Star Ltd, which also has a mean-
ing tensions between Washington and Beijing 6% y-o-y. Analysts said its US its home territory, which Another concern is the gin gains. Earnings before interest quarter from last year to ₹81.8 crore, ingful presence in cooling products,
over everything from the pandemic to China’s derma range is facing keen should help growth in the company’s high net debt lev- and taxes (Ebit) margin expanded by but came in better than analysts’ have declined 35% from their highs
tight grip over Hong Kong. Gold has surged this competition. “US business coming quarters. Europe has els. “Net debt remains ele- 236 basis points y-o-y to 15.5% in Q1. estimates. Investors approved, tak- earlier this year. Based on Bloomberg
year on rising haven demand and as investors bet continued to see high price done well during the first quar- vated at ₹3,600 crore, The margins improved sequentially ing Voltas’s shares up by about 4% data, the Voltas stock trades at 32
central banks and governments will maintain sup- erosion in the Derma portfolio ter. However, growth in the although Glenmark managed too. One basis point is one-hun- since numbers were out on Friday. times estimated earnings for FY22.
port for economies hit by the coronavirus. Bullion (15%) and increased competi- rest of the world and Latin to reduce it by ₹180 crore dur- dredth of a percentage point. To be sure, the UCP segment had While valuations appear to be on
hit an all-time high on 7 August. BLOOMBERG tion in Mupiro- America slid con- ing the quarter. Nonetheless, the higher side, many analysts have
cin. With a thin With overhang in siderably. debt reduction remains the a positive view on the company’s
pipeline o f the US and Indian As is the case of key monitorable in the near
Gaining Voltas’ share in multi-brand outlets for UCP segment (in %)
prospects. “Voltas is outperforming
ANDAs pending markets going on, other pharma term for any stock re-rating,” share 26.2 its peers and the gaining of share
Currency boost for approval and analysts estimate companies, Glen- said the Emkay report. Voltas improved 23.9 24.2 should sustain premium valuations,”
Philippine peso advances to the strongest level a low filing rate, mark also cut back In the coming quarters, a its market share 22.1 said analysts from Jefferies India Pvt.
20.8 21.0 21.4
since 2016. FY22 earnings’ in the unitary
we expect US on sales and pickup in domestic and global Ltd in a report on 17 August. The
55
Philippine peso spot (in peso per $)
growth to remain growth rate at administration markets will be watched. But cooling product
broking firm added, “We believe
about 8% y-o-y (UCP) segment
54
muted in the next expenses in Q1. with the overhang in the US by 200 basis Voltas is a good recovery play on
few years,” said Hence, the quar- and Indian markets persisting, points in Q1FY21 both consumption and investment
53
Emkay Global ter’s operating analysts have pencilled in an on a sequential themes in India, with a strong bal-
52 Financial Services analysts in a profit growth was strong. earnings growth rate of about basis. ance sheet to back it.”
51 client note. Operating margins jumped to 8% y-o-y for FY22. The stock’s Even so, the fact that Voltas’s
49 Its 3.7% y-o-y growth in the 20.4%, among the highest in recent run-up has also raised shares have been rather resilient
50
domestic formulations portfo- the last eight quarters. Most of its valuations to 13-14 times Source: Company, during this pandemic crisis would
49 Kotak Institutional FY FY FY FY FY FY Q1FY
lio looks dull, compared to these costs, though, could nor- FY22 earnings. This may be Equities
mean substantial upsides in the
49 2015 2016 2017 2018 2019 2020 2021
48 some pharma firms. Glenmark malize in the coming quarters, fully pricing in its growth rate. stock may be capped.
SATISH KUMAR/MINT
47
17 Oct 2016 18 Aug 2020
Source: Bloomberg
SATISH KUMAR/MINT
Remittances’ surge drives

the Philippine peso higher
Steady tech spends by global lenders will aid recovery of India’s IT sector
A surprise increase in money sent home by over-
seas workers has given Asia’s best-performing R. Sree Ram concerns investors had about this ogy spends, added the analysts of June quarter). This divergence
Holding up
currency this year another boost. The Philippine sreeram@livemint.com important vertical. Limited impact of covid-19 on US banks’ revenues helped them
Nomura Research. looks sharper if only the top 5 US
peso advanced for a fourth day on Tuesday to the The massive fiscal and mone- maintain their technology spends. The trends are reflective in banks are considered for this
T
strongest since November 2016 after the central he fortunes of Indian IT tary stimulus is mitigating the deal wins by the Indian IT sector. analysis,” said Motilal Oswal
Y-o-y change in top US banks’ revenue (in %)
bank said the previous day that remittances firms are closely linked impact of covid-19 on US banks’ 7 TCS won $2.1 billion of contracts Financial Services Ltd analysts.
increased 7.7% in June, defying forecasts for a with the growth rates of the earnings. This is helping them 6 in the BFSI space last quarter The revenue divergence is
decline. The peso has now appreciated 4.7% in the global banking, financial services maintain technology spends. 5 amid the pandemic, which is attributed to demand fulfilment
past three months, compared with 2.3% for its and insurance (BFSI) industry. In fact, an analysis by Kotak 4 decent compared to $2.4 billion challenges (or supply con-
3 3
Asian peers. The turnaround in remittances adds After all, the vertical generates Institutional Equities shows 2 2 order wins in the segment in the straints) in the June quarter and
another positive for a currency that’s already been about 30% of the total revenue of higher technology spends in the 0 March quarter. Infosys is seeing a the exposures of Indian IT to cer-
benefiting from a weaker US dollar and a gradual India’s leading IT companies. June quarter by large US banks. -1 healthy deal pipeline. Five of the tain troubled sub-segments
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
winding back of lockdown restrictions. Remittan- For some smaller firms, such as Digital banking channels are see- 15 large deals won by the com- within the BFSI space.
2018 2019 2020
ces are its largest source of forex after exports, and Larsen and Toubro Infotech Ltd, ing a surge in usage and this is pany in Q1 were from the finan- Even so, the fact that large
Note: Trends follow calendar year ending in December. Source: Nomura Reseach
account for 10% of the economy. BLOOMBERG Hexaware Technologies Ltd and driving technology spending. cial services segment. global clients themselves aren’t
Mphasis Ltd, an even larger por- A similar trend was visible in SATISH KUMAR/MINT Of course, the conversion of cutting tech spend is a relief,
For more reports and analysis tion of their revenues come from Europe as well. and strength of banks’ operating of spends towards digital from orders into revenue will be key. compared to earlier concerns
on the markets, follow our the BFSI vertical, making it cru- “Comments from large banks platforms. This, in our view, legacy areas,” Nomura Research “Even as aggregate tech spends at about such cuts. Stocks of IT ser-
Mark to Market podcast with cial for their revenue growth. indicate that this (surge in digital drives the relatively stable out- said in a note. the top 8 banks grew 3% year-on- vices firms have rallied and some
Pallavi Pengonda and Aparna In this backdrop, the latest platforms usage) is likely to be look on technology spending in The cost savings potential of year, the aggregate dollar reve- of them are above their pre-covid
Iyer on htsmartcast.com financial results of large global sticky even in a post covid-19 2020, and we think clients are the shift from physical to digital nue of the top 7 IT companies highs, and much of these posi-
banks should allay some of the world, driven by convenience likely to accelerate repurposing channels are also aiding technol- from BFSI declined 4% (in the tives seem to be already priced in.
Mark to Market writers do not have positions in the companies they have discussed here

MUMBAI 05
Zee appoints
Spectrum sale allowed as RBI frames rules for
R. Gopalan starting NPCI rivals
as chairman
Lata Jha
lata.j@livemint.com
per norms: RCom lenders Shayan Ghosh
shayan.g@livemint.com
NEW DELHI MUMBAI
Creditors claim that DoT has recognized spectrum as security that can be monetized
M A
edia and entertain- ny new umbrella orga-
ment company Zee nization for retail pay-
Entertainment Enter- ments on the lines of
prises Ltd on Tuesday Ishita Guha & Japnam Bindra the National Payments Corp.
appointed promoter Subhash
Chandra as chairman emeritus,
NEW DELHI
Paid ₹195 cr of India (NPCI) must have a
minimum paid-up capital of
F
following his resignation as inancial creditors of bank- ₹500 crore and strive for inter-
non-executive director. Effec- rupt Reliance Communica- AGR-related operability with NPCI systems,
tive 19 August, the former Zee tions Ltd (RCom) on Tues- the Reserve Bank of India said.
chairman’s association with the day told the Supreme Court dues: Jio to SC WHO calls
for end to
Such organizations are
business will be honorary. Zee’s that the department of tele- ‘vaccine
expected to challenge the RBI said that the applicants
new chairman is R. Gopalan, communications (DoT)’s trading PTI monopoly of NPCI, which was must have a minimum paid-up
nationalism’,
who has served as an additional rules allow spectrum sale, in feedback@livemint.com urges floated by the RBI and the capital of ₹500 crore. MINT
independent director since response to the apex court’s query NEW DELHI widespread Indian Banks’ Association
flu
November 2019. on whether radio airwaves can be vaccination
(IBA) in 2008. In February, the least three years of experience
R
“In recognition of the fact sold under IBC. eliance Jio told the RBI had released draft guide- in the payments ecosystem.
bit.ly/2Egq6MU
that...Chandra founded the Harish Salve, representing len- Supreme Court on lines for such organizations, “The promoters or pro-
company and, considering his ders to RCom and Reliance Jio Info- Tuesday that it has looking to reduce concentra- moter groups shall upfront
unmatched contributions, as a comm Ltd, said the government has already paid ₹195 crore in tion risks in the space domi- demonstrate capital contribu-
mark of respect, the board recognized spectrum as security AGR-related dues, which nated by NPCI. tion of not less than 10% or ₹50
requested him to act as ‘chair- that can be monetized and, thus, included spectrum sharing In its “framework for autho- crore at the time of making an
man emeritus’ with effect from banks consider spectrum as an asset charge of Reliance Commu- risation of pan-India umbrella application for setting up of
19 August 2020, and the same before disbursing loans to telcos. Last week, SBI, on behalf of RCom’s committee of creditors, had told the nications (RCom). It said entity for retail payments”, the the umbrella entity,” it said.
was accepted by him. This posi- However, Salve said it would be pre- top court that spectrum is an integral asset of telecom service providers there is no question of one central bank Tuesday said no NPCI was incorporated as a
tion will not carry any remuner- mature to decide whether the spec- that, once sold, will help creditors recover dues. MINT operator paying the adjusted single promoter or promoter not-for-profit company under
ation. As chairman emeritus, trum held by a bankrupt telecom gross revenue (AGR)-related group should have more than the provisions of the Compa-
Shri. Chandra will continue to firm can be sold under the IBC. “Under a tripartite licence agree- RCom owes DoT ₹25,199 crore, dues of another firm, as sug- 40% investment in the capital nies Act to provide infrastruc-
guide the board and the com- Last week, SBI, on behalf of ment, the government has recog- including spectrum usage charge gested by the apex court ear- of this entity. It also said the ture to the entire banking sys-
pany’s senior Management,” RCom’s committee of creditors, had nized the idea of spectrum as secu- and licence fees, according to gov- lier, and it has cleared all its promoter “can” bring down tem in India. The 10 core pro-
Zee said in BSE filing. told the top court that spectrum is an rity to be used by telcos to raise ernment estimates, representing dues. shareholding in moter banks are
Gopalan has vast experience integral asset of telecom service pro- funds from banks… Only when the half of RCom’s dues. The billionaire Mukesh the entity to a Applicants must SBI, Punjab
in the economic and financial viders that, once sold, will help cred- RCom resolution applicant moves On Tuesday, the SC said it cannot Ambani-led Jio told the apex minimum of 25% have at least National Bank,
administration of the country itors recover dues. the DoT for spectrum sale, only at grant telcos 20 years to pay their court, however, that if still after five years, in three years of Canara Bank,
with long stints with the com- The sale of spectrum of bankrupt that stage the issue should be respective AGR dues. Vodafone Idea any amount remains pending a seeming dilu- experience in Bank of Baroda,
merce and finance ministries, telcos under the IBC proceedings is decided,” Salve said. Ltd, which still owes over ₹50,000 from sharing of spectrum of tion from its draft Union Bank of
and in the manufacturing and critical for financial crore to DoT, will be
the payments
RCom, it is willing to pay that. guidelines which India, Bank of
ecosystem, the
services sectors. He has held creditors, as they DEBT BURDEN the worst hit if the A bench of Justices Arun made such dilu- India, ICICI Bank,
central bank said HDFC Bank, Citi-
several positions, including as a could recover a sig- court does not grant Mishra, S. Abdul Nazeer and tion mandatory.
member of Public Enterprises nificant amount of SALE of spectrum of RCOM’S total dues, TRANSFER of staggered payment M.R. Shah was told by senior A person aware bank and HSBC.
Selection Board, secretary at dues from the sale of bankrupt telcos
under IBC is critical
as calculated under
the company’s IBC
spectrum to a new
buyer is not allowed
options. advocate Harish Salve, of the develop- Under the
the department of economic airwaves as part of for financial proceedings, stand at unless past dues are “There are huge appearing for Jio and Com- ment said the reason for terms set out by the central
affairs and the department of the insolvency reso- creditors nearly ₹49,054 cr cleared, say experts dues payable, how mittee of Creditors (CoC) of changing it from mandatory to bank, the scope of activities of
financial services, besides hav- lution process of tel- can we let it go?... RCom, that it would be pre- voluntary is to make it more this umbrella entity will be to
ing led the Indian negotiation ecom firms. RCom’s We had directed mature to decide if spectrum inclusive at a time when cov- set up, manage and operate
team at the World Trade Orga- total dues, as calculated under the According to legal experts, trans- payment within a certain period, the can be sold or not under id-19 has made capital scarce. new payment systems in the
nization. He comes with a mas- company’s IBC proceedings, stand fer of spectrum to a new buyer is not government is seeking 20 years. Insolvency and Bankruptcy “The situation between Febru- retail space. It will also have to
ter’s degree in public adminis- at nearly ₹49,054 crore. UV Asset allowed unless past dues are cleared What if telcos go into insolvency?... Code (IBC). He said only ary and now has changed, and operate clearing and settle-
tration and management from Reconstruction Co. is looking to and will require amendments in the In 20 years, all kinds of manipulation when the RCom resolution the change in language is to ment systems for participating
Harvard University, an MA in acquire RCom and Reliance Tele- telecom law and policies. and legal filings can take place, we applicant moves the Depart- ensure potential applicants are banks and non-banks, and is
economics from Boston Uni- com Ltd’s spectrum, data centre and DoT, however, can retain the can’t allow like this,” said Justice ment of Telecom (DoT) for not hamstrung by this crite- also expected to interact and
versity and a bachelor’s degree enterprise business and real estate spectrum with bankrupt telcos, dis- Arun Mishra, who is heading the spectrum sale, the issue will rion,” this person said on con- be interoperable, to the extent
in chemistry from Madras Uni- assets with a bid of ₹16,000 crore allowing the sale and commercially three-judge bench hearing the AGR be decided. dition of anonymity. possible, with the systems
versity. under the IBC. auctioning the airwaves again. case. Applicants must also have at operated by NPCI.
LIC clocks a 40% jump in premium income

Anirudh Laskar individuals (HNIs) who are During July, LIC’s new busi-
anirudh.l@livemint.com buying big-ticket policies, cus- ness individual single pre-
MUMBAI tomers belonging to the mid- mium was 68.59% higher at
dle class too are now buying ₹3,305.95 crore against ₹1,961
A
fter a dismal first quar- policies with ₹12-15 lakh sum crore in July 2019.
ter, Life Insurance assured, which was earlier at Between April and July, this
Corp. of India (LIC) around ₹7-10 lakh,” Anand grew by 13.47% to ₹6,961.19
clocked a sharp 40% month- said, adding even people close crore as against ₹6,134.96
on-month growth in individ- to retirement are buying large crore during the same period
ual premiums in July and pension products to ensure of last year. LIC’s overall new
August, led by a jump in the long-term interest rates are business premium during the
sales of big-ticket pension and protected so that they get suf- April-July period was slightly
term assurance plans. ficient returns at maturity. The newfound interest in pure lower at ₹15,170.95 crore as
LIC witnessed negative Concerns over longevity protection products has compared to ₹15,311.87 crore a
growth in new business in the and future earning capacity in improved sales in LIC’s term year ago.
first quarter as its agents could the wake of covid are prompt- products. PRIYANKA PARASHAR/MINT LIC expects to garner new
not meet customers due to the ing people to buy big-ticket business premium worth
lockdown restrictions. Given term assurance and pension “The public’s newfound ₹18,800 crore for August,
continuing curbs, LIC has products. interest in pure protection which is about 10% higher
shifted focus to fewer but big- “Uncertainty of life due to products has substantially than in August 2019.
ger policies, which are being covid has spur-red the improved sales in our term Given continued movement
sold at 50% higher size than in demand for insurance prod- products, offline Jeevan Amar curbs and the need for social
the last fiscal year, managing ucts and fast falling interest and online Tech Term, espe- distancing, LIC—which
director Vipin Anand said in an rates for fixed-return annui- cially now that private compa- depends largely on agents—
interview. With assets of more ties,” he said. People aged nies have increased their term witnessed a drop in its new
than ₹34 trillion, LIC is India’s 50-70 are buying large annui- insurance premiums and our business premium in the range
largest life insurer. ties to freeze returns before products are comparatively of 13-32% during April, May
“Apart from high net-worth interest rates fall further. better priced,” he said. and June.
Online retailers betting on offline expansion

Madhurima Nandy & its offline stores. model which allows consumers print to build customer con-
Tarush Bhalla Furniture e-tailer Pepperfry, to choose from the portfolio of nect, especially in categories
which has over 60 studios in products available, coupled like food and grocery, where
BENGALURU 20 cities, is also planning to with the consultation services consumers like the touch-and-
expand to tier-II and tier-III at our studios and convenience feel experience, build their own
E
tailers are betting big on markets through its franchise- of online order placement.” sourcing channels/private
expanding their physical owned-and-operated model. It While a bulk of the e-com- label brands and enter into B2B
presence despite the dis- will open around 20 more stu- merce volumes come from the e-commerce channel which is
ruption in offline retail, follow- dios by March top 30 cities, over under-developed,” said Manish
ing the covid-led lockdown and 2021, including Companies are 60% of volumes Saigal, managing director,
beyond, to cater to the demand the under-con- spreading their are likely to come Alvarez and Marsal India.
from smaller cities, and as struction stores in offline footprint from smaller cities Meat and fish delivery portal
experience centres to further Agra, Guwahati, to build base in in the next five Licious, which has two offline
extend their reach using the Patna, Raipur,
categories where years, said man- centres in Bengaluru and
omni-channel model. and Kozhikode. agement consult- Gurugram, is also looking to
Beauty retailer Nykaa has Ashish Shah, touch-and-feel ancy Alvarez and ramp up its offline capabilities
opened three stores recently, co-founder and experience is key Marsal. Hence, it significantly, said co-founders
and is planning to open 10-15 chief operating is imperative for Abhay Hanjura and Vivek
more depending on how the officer, Pepperfry, e-commerce busi- Gupta. Jaipur-based online
market evolves. said the stores are a significant nesses to build their seller base custom furniture startup
PERSONAL FINANCE
To get your MINT copy, give a missed call on
Founder and CEO Falguni consumer touchpoint for the and delivery reach in small Wooden Street, which raised 7039035039 or visit www.mintreaders.com
Nayar said offline play is essen- brand, which is witnessing a towns. $3 million, too, has opened two or write to us at subscription@livemint.com
tial, especially for luxury and revival in footfall. “The studios “While offline retailers have new stores in Hyderabad and You are important to us. That’s why our dedicated
premium categories, as cus- are already contributing to to embrace online as a bid to plans to open stores in Kolkata section on promising investments will help point your
tomers like to experience the around 20% (compared to 38% survive the disruption that the and Kochi this month, besides wealth in the right direction–up.
product before buying. pre-pandemic) of the overall retail industry is witnessing Mysuru and Coimbatore each
The startup also sells pre- business. This is due to our globally, e-commerce firms are by the year-end.
mium beauty products through exceptional marketplace spreading their offline foot- madhurima.n@livemint.com

MUMBAI CORPORATE
VIRUS EFFECT
Govt says virus may
Education sector consolidating now cause damage after
Kalpana Pathak private schools over free, govern- projects and homework. This has infrastructure, they will seek to rent selves?
kalpana.p@livemint.com
MUMBAI
ment schools. Through the covid-19
crisis the gap between private and
government schools has widened.
enabled the emergence of the pri-
vate offline tutoring market and
learn-at-home companies. Schools
technology solutions (SaaS) for digi-
tal payments, finance and accounts,
learning management systems, live
Focus on usage and outcomes
rather than merely acquiring cus-
tomers. The lack of regulatory over-
recovery phase too
I
ndia-focused private equity firm will leverage digital technologies to classes, assessments, reporting and sight or rules in online ed-tech sell-
Gaja Capital, which has been offer blended learning and extend collaboration. ing is bound to be addressed at some Neetu Chandra Sharma
TN DEATH TOLL
investing in the education and their reach to at-home. This will Given the number of rapidly point in time. neetu.s@livemint.com
ed-tech space since 2005, have a positive impact on both reve- growing edu-tech companies, NEW DELHI
CROSSES 6,000
expects the covid-19 crisis to nues and academic outcomes. do you see a possibility of consol-
INDIA
T
Automation Growth
accelerate market share gains by partner partner
At-home engagement will go idation in the near future? he novel coronavirus
private schools in the K-12 segment. beyond academic content. We are There is consolidation happening can cause damage even
India is the most attractive private
Associate
sponsor
already seeing some green shoots— as we speak. But it will accelerate after a covid-19 patient 2,752,269 52,846
education market in the world, with at-home engagement has been when the investor hype dissipates. has recovered, the govern- Total cases Deaths
the kindergarten to class 12 (K-12) Many private schools have ensured accelerated by covid-19 , with a near The K-12 space will see a fresh wave ment cautioned on Tuesday as 2,023,729 675,694
space comprising 270 million chil- continuity by offering online two times growth in website traffic, of mergers and acquisitions, and home minister Amit Shah was Recovered Active cases
dren, 10 million teachers and 1.5 mil- classes, etc. By comparison almost paid user base, user engagement consolidation opportunities. In the admitted to hospital for post-
lion schools. Unlike most markets in the entire government K-12 sector is levels and willingness to pay. short-term, covid-19 will impact covid care.
the developed world, Indian K-12 non-operational. Do you see partnerships with schools much like other small busi- The Union health ministry GLOBAL
education is significantly privatized The education sector is attract- academic institutions (espe- nesses. Mandatory education is said that new dimensions of
with parents voting for paid, private ing a lot of investments. Do you cially K-12) as the next step to insulated from demand shocks, but post-covid sub-acute morbidi- 21,927,114
‘
schools over free government think this will continue? scale up from existing online schools will face stretched receiva- ties are coming to the fore. Total cases
schools, says Gopal Jain, The hype might ed-tech demand? bles, reduced availability of debt for They include respiratory
co-founder, Gaja Capital, in an evaporate, but the We see a perma- capacity expansion and cost pres- symptoms, immunological 775,000
interview for Mint’s Pivot and Perish increase in investor We expect covid-19 to nent change in the sures. reactions in children and Deaths
series. Edited excerpts: interest is here to accelerate the shift way schools look at How should prospective fibrosis in lung. 13,917,917 7,234,197
How will the pandemic change stay. There is still a over the medium term the post-lunch, or startups in this Shah who tested negative Recovered Active cases
the education sector? lot of catch up wait- at-home sector. space differ- for covid-19 last week after
We expect covid-19 to accelerate ing to happen in K-12 market share Schools have real- entiate undergoing treatment was
Source: Union health ministry, states
the shift over the medium term in between what con- from government to ized they can t h e m - admitted to All India Institute
K-12 market share from government sumers spend on private schools. improve both edu- of Medical Sciences (AIIMS) on According to the govern-
to private schools. India is the most education and the cational and finan- Tuesday after complaining of ment, one vaccine is in phase 3
attractive private education market amount of market GOPAL JAIN cial outcomes by fatigue and body ache for the trials, and another two pro-
in the world. India has the world’s value this educa- co-founder, Gaja Capital moving into this last 3-4 days. He was admitted gressing well in phase 1-2
largest K-12 system with 270 million tion spend has cre- space using online for post-covid care, the hospi- trials.
children, 10 million teachers and 1.5 ated. Also, schools channels. This will tal said in a bulletin. “We have reviewed all these
million schools. Unlike most mar- have discovered blended learning. in turn increase B2B tech spends “We will use the treatment vaccine candidates. These are
kets in the developed world, Indian So far, they had been reluctant to and partnerships. While most modalities available with us as progressing well and their
K-12 education is significantly priva- retain control of learning beyond schools will not be able to afford and when required to deal developments are taking place
tized with parents voting for paid, the classroom other than through expensive, on-premise technology with such cases. It is happen- in a reassuring manner”, said
ing to an extent, but not at a Paul. “The outline of vaccine
dangerously alarming levels. administration and supply
But we should chain is ready. As
India’s overall unemployment rate touches a nine-week high at 9.1% remain all the
more careful
because this virus
New dimensions a n d
of post-covid
sub-acute
when
required, detailed
and micro-level
may cause dam- morbidities are planning for vac-
Prashant K. Nanda The previous high was months was recorded in the short- to medium-term. in the immediate to medium culture activities have dipped, age after recovery cine administra-
coming to the
prashant.n@livemint.com 11.6% in the week ended 14 week ended 12 July when “A good crop season man- range will remain a tough people have started coming phase too,” said tion based on a
NEW DELHI June. In fact, it was even summer crop sowing was in aged to taper down the unem- task,” said Arup Mitra, a pro- back to cities despite lack of Dr V.K. Paul, fore, the health scientific
higher than the monthly full swing across Indian with ployment post-reverse migra- fessor of economics at the jobs amid partial lockdowns member (health), ministry said approach accord-
I
ndia’s overall unemploy- joblessness rate of 7.43% wit- the acreage far tion. But agri- Institute of Economic across several states. NITI Aayog. ing to the charac-
ment rate touched a nine- nessed in July, and the pre- higher than last The rural c u l t u r e Growth. “Migrants who were earlier “The scientific teristics of the
week high, in sync with covid monthly unemploy- year.
joblessness rate activities is sea- “The gradual return of employed in construction or and medical community is vaccine will be adopted.”
economists’ assessment that ment rate, shows CMIE data. Similarly, the sonal and, this migrants to cities despite a manufacturing may not be keeping an eye on it. It’s an The government is holding
the drop in joblessness was The rural unemployment urban unemploy- climbed from year, we saw a spreading pandemic shows facing a big challenge as real unfolding story, the medical discussions with vaccine man-
due to agricultural activities rate climbed from 8.37% in ment rate was at 8.37% in the week high absorption that rural India is in need of estate construction has fraternity is responding and it ufacturers to understand what
and, thus, temporary in the week ended 9 August to 9.61% in the week ended 9 Aug to of people in that work. It will also create a started picking up, but those is expected that they will put steps they expect from the
nature. 8.86% in the week to 16 ended 16 August, 8.86% in the week sector. Despite demand-supply mismatch in who were in retail and hospi- out data and information in a government, including on
The national unemploy- August. Rural unemployment c ompa r ed to to 16 Aug: CMIE low productiv- urban areas as unemployment tality sectors has a huge chal- systematic way,” he said. approvals and pricing.
ment rate climbed from 8.67% rate was also at a nine-week 9.31% in the previ- ity, it helped the opportunities are not back to lenge at hand because As India’s tally of covid-19 “We requested the vaccine
in the week to 9 August to high, since the 10.96% ous week. Urban employment pre-covid-19 times.” Mitra demand is still low, people are cases on Tuesday crossed 2.7 manufacturers to indicate
9.1% in the week ended 16 recorded in the week ended unemployment crept up for scenario at least from the sta- said, adding that the labour not visiting markets and million and deaths touched what possible prices could be.
August, according to data 14 June. the second consecutive week, tistical point of view, but the force participation rate in malls,” said K.R. Shyam Sun- 52,846, the country was Pricing is very complex as
from the Centre of Monitor- The lowest rural unem- and experts said it will con- current situation is different August must be lower than dar, a labour expert and a pro- aggressively working to make some of these vaccines are at
ing Indian Economy (CMIE). ployment rate in recent tinue to remain high in the and the unemployment rate the previous month as agri- fessor of XLRI Jamshedpur. vaccines available. an early stage,” said Paul.
Rural recovery could slow down as cases rise, says Ghosh India in talks with 13 countries to
Gopika Gopakumar &
Shayan Ghosh
resume flights under air bubbles
Orissa. Andhra Pradesh and
Maharashtra have seen a sig-
into the covid-led lockdowns,
we have not been able to exit
given the good harvest and
improved cash flow.
nificant surge in cases in rural it in a staggered manner. The country’s gross domes-
MUMBAI areas. Everywhere else, there There have been too many tic product (GDP) is expected Rhik Kundu the US, the UK, France, Ger- countries went into lockdown
is a surge in cases in rural restrictions and circulars, to contract by 16.5% in the rhik.k@livemint.com many, the UAE, Qatar and the to prevent the spread of the
D
emand recovery in areas,” he said. which have not helped. My first quarter of the current fis- NEW DELHI Maldives. Bilateral air bubble is pandemic, although state-
rural India should not The unplanned lockdowns sense is that we have become cal year, according to Ghosh. a mechanism to resume inter- owned Air India has carried out
T
be seen as the harbin- across states could also affect hostage to the lockdowns. Earlier, he had estimated he Indian government is national flights between India repatriation flights to bring
ger of economic revival, espe- rural recovery, Ghosh noted. Unless we come out of this Q1FY21 GDP to contract by in talks with as many as 13 and another country with cer- stranded Indians home.
cially with the number of cov- This has resulted in higher mentality, things are unlikely more than 20%. countries to resume tain preconditions, which reg- Separately, full service car-
id-19 cases rising in villages, food prices and supply dis- to change dramatically,” he “The first quarter results international flights under ulates movement in view of the rier Vistara, a joint venture
said State Bank of India’s ruptions. He, therefore, sug- added. (Q1 FY21) of some of the listed bilateral air bubbles, civil avia- pandemic. “Air bubbles have between Tata Sons and Singa-
group chief economic adviser gested a planned exit from the The surge in infections is companies show that their tion minister Hardeep Singh also been pro- pore Airlines, will
Soumya Kanti Ghosh. lockdowns that would not likely to affect rural collec- margins have stayed stable Puri said on Tuesday. posed with our These countries operate special,
The surge in share of rural SBI chief economist affect the rural economy tions, which had seen an because they have drastically “These countries include neighbours Sri include Australia, non-stop flights
districts in new covid cases Soumyakanti Ghosh. gravely. increase in June, said Ghosh. reduced costs. However, if Australia, Italy, Japan, New Lanka, Bangla- Italy, Japan, New between Delhi
from 23% in April to 54% in “While we are talking about Banks and non-banking revenues are not commensu- Zealand, Nigeria, Bahrain, desh, Afghani- Zealand, Kenya, and London’s
rural areas could put a span- able to sustain the recovery. a bumper crop, the arrival at financial companies (NBFCs) rate, costs will have to be Israel, Kenya, Philippines, Rus- stan, Nepal & Heathrow from
Philippines,
ner in the works of India Inc., We have seen that the total the mandis has been lower have been pinning their rationalized and that will have sia, Singapore, South Korea & Bhutan. Going 28 August to 30
which was banking on rural number of covid-19 cases is than last year, indicating sup- hopes on rural demand and an impact. We have already Thailand,” Puri said in a Twitter forward, we will Russia, Singapore, September, mark-
recovery for an economic now at 54%. It was 23% in ply disruptions. Farmers will expected quick recovery in seen how there has been a post. “The ongoing negotia- consider such S. Korea, Thailand ing its foray into
revival at the national level, April. It had declined to 24% also not get the desired prices. these areas even as coronavi- series of layoffs in several sections will benefit stranded Indi- arrangements long-haul inter-
according to his latest report. in June. After the economy This is exactly what will hap- rus continues to affect tors and if this cost rationali- ans and nationals of these with other coun- national flights,
“Any amount of recovery opened up, this number has pen if covid-19 cases continue demand in the urban centres. zation continues, it will only countries.” tries also,” Puri added. the airline said in a statement.
will be contingent on the increased in states such as to surge for another one or NBFCs such as Mahindra postpone the consumption India currently has interna- International flights to and SpiceJet is also set to start non-
recovery of the urban sector. Maharashtra, Karnataka, two months,” Ghosh noted. Finance had seen an increase recovery,” Ghosh said. tional air travel arrangements from India have been in sus- stop flights to London from
The rural sector will not be Uttar Pradesh, Bihar, and “I think that while we got in collections from farmers gopika.g@livemint.com under bilateral air bubbles with pension since March as various September.
mint Union minister of state for tourism and culture Prahlad Singh Hong Kong bans Air India flights
Patel, CII has recommended several measures for the survival
Govt planning to grant MSME
SHORT TAKES and gradual start of the business of the tourism sector. CII has also
urged all stakeholders to come together and work harmoniously
to solve the crisis along with the government.As a second part of
status to dealers, says Gadkari
HT
for two weeks over virus fears
New Delhi: National carrier Air
India Ltd has been banned from
MINT
IIT-M ranked as most innovative the five-pronged recommendations, CII has asked for the liquid- flying to Hong Kong till 31
ity enhancement. It has also sought waiver of all fixed charges for August for ferrying too many
institution in the country the period of lockdown, deferment for 12 months of all statutory covid-19-infected passengers,
PTI Srinagar: IIT-Madras was ranked dues post the waiver period, extension period for licences and as per media reports. The gov-
at the top among India’s innova- making loans more accessible. PTI ernment has suspend flights for
tion institutions, considering its two weeks by invoking the Pre-
performance in promoting an vention and Control of Disease
entrepreneurial eco-system. IIT Ashok Lavasa resigns as election (Regulation of Cross-boundary
Madras was followed by IIT Mum- Conveyances and Travellers) Regulation, said South China Morn-
bai and Delhi, IISc Bengaluru in
commissioner; to join ADB as VP ing Post quoting government officials. RHIK KUNDU
the Atal Ranking of Institutions on New Delhi: Ashok Lavasa, who was next in line to head the poll Read more on livemint.com
Innovation Achievements. panel, on Tuesday resigned as election commissioner and
PRASHANT K. NANDA would soon be joining the Asian Development Bank as vice New Delhi: The government is considering according
Read more on livemint.com RAMESH PATHANIA/MINT president, said people with MSME status to dealers as it will enable them to avail bene- 6.1 mn Indian youth may lose jobs
knowledge of the matter. Lav- fits offered to micro, small and medium enterprises, Union
asa, has sent his resignation to minister Nitin Gadkari said on Tuesday. Micro, small and
due to pandemic: ADB-ILO report
CII seeks govt intervention for Rashtrapati Bhavan and has medium enterprises (MSMEs) comprising manufacturing New Delhi: Around 6.1 million youth in the 15-24 age group are
requested to be relieved on and services units need to get registered to avail the bene- likely to lose their jobs in 2020 if India takes six months, ending
revival of tourism industry August 31, said people. He fits and subsidies offered under various government September, to contain the pandemic, the Asian Development
New Delhi: Industry body CII has sought intervention and sup- would be joining the Philippi- schemes. Registered MSMEs are eligible for tariff subsidies Bank (ADB) and International Labour Organization (ILO) said in
port from the centre to ensure revival of the tourism industry, nes-based ADB sometime in and tax and capital subsidies. PTI a joint report Tuesday. PRASHANT K. NANDA
majorly impacted due to the covid-19 pandemic. In a letter to the September, they added. PTI Read more on livemint.com

MUMBAI 07
Calculated risks could Incorporation of new firms jumps

Gireesh Chandra Prasad up a company is an act of commission
see SpiceJet beat covid gireesh.p@livemint.com

NEW DELHI
and I would not ignore this data,” said
Vyas.
The spurt in new company regis-
R
egistration of new companies tration suggests a shift in economic
in India surged to the highest activity after the pandemic. The
in more than seven years in number of companies in agriculture,
July in one of the clearest signs yet of an employment generating sector
renewed investor interest and plans that weathered the shock dealt by the
Airline tackles pandemic blues by taking wide-body planes on wet lease by entrepreneurs to set up new busi- coronavirus crisis, rose from 138 in
ness ventures. April progressively to 903 in July.
A total of 16,487 were incorporated The share of farm and allied sector
Rhik Kundu in July, data from the corporate companies among all the companies
rhik.k@livemint.com affairs ministry showed. This is the set up in a month too rose from 4.3%
NEW DELHI highest since January 2013—the The number of industrial companies in April to 5.4% in July. Farm activity
maximum available historical data— registered, comprising mostly was exempted from the national
S
piceJet co-founder Ajay Singh when 5,508 companies were regis- manufacturing entities, rose from lockdown.
has the challenging task of Steel tered. 803 in April to 5,041 in July. BLOOMBERG The number of industrial compa-
industry
ensuring that the no-frills airline asked to
The July figure is a sharp rise from nies registered, comprising mostly
conserves cash, even as he rene- enhance the 3,209 companies incorporated in certain other high-frequency eco- manufacturing entities, too rose
gotiates contracts, recapitalizes spending to April when Asia’s third-largest econ- nomic indicators, which had sug- from 803 in April, accounting for
its balance sheet, and bags all possible rev- boost omy was under a strict lockdown to gested that a revival of the Indian 25% of all companies formed in the
consumptio
enue opportunities to emerge from the n, create
control the coronavirus pandemic. In economy may be prolonged due to month, to 5,041 in July, representing
crisis caused by the covid-19 pandemic. jobs May, 4,835 were registered, increas- the severe impact of the pandemic 30.5% of all the companies.
The pandemic has spelt doom for the bit.ly/3kUuXo3
ing to 10,954 in June. and the extended lockdown meas- The services sector, which
aviation sector globally, but SpiceJet To be sure, setting up a company ures. accounts for the lion’s share of all
appears to be more burdened than many shows the intention to invest, but The spike in the number of com- new companies formed as well as
other airlines. Last month, the carrier’s prevailing economic conditions will panies registered merits a lot of more than half of India’s gross
statutory auditors, S.R. Batliboi and Asso- play a big role before the companies attention, said Mahesh Vyas, manag- domestic product (GDP), has a
ciates Llp, raised doubts about the com- finalise their investment decisions. ing director at Centre for Monitoring slightly different tale to tell. While
pany’s ability to continue as a going con- Co-founder Ajay Singh has his task cut out in steering no-frills airline SpiceJet to safety. The total authorized capital of all Indian Economy (CMIE), a business the number of services companies
cern as the no-frills airline reported its companies set up in July is ₹2,294 information company and think set up rose more than fourfold from
highest ever quarterly loss during the the present circumstances, this seems to paying a monthly fixed rent. However, it’s crore. tank. “However, whether it is indica- 2,268 in April to 10,543 in July, its
March quarter at ₹807.07 crore. be a clever move that is likely to result in too early to conclude that these measures Data for new company registra- tive of investor interest can only be share came down from 70.6% in April
SpiceJet’s challenges started with incremental cash generation. alone will help the airline survive. What tions in July is more optimistic than known after investigating it. Setting to 63.9% in July.
delays in the delivery of Boeing 737 MAX “Overall demand, especially for inter- can be assumed is that they will help the
planes, which impacted the airline’s prof- national flights, has dropped significantly, airline keep flying longer despite adverse
itability, said Kapil Kaul, South Asia chief but there is still more demand than supply circumstances,” the person said.
executive officer of CAPA-Centre for Avi- in the market because of the much Indian airlines will need to raise about
ation, an aviation consultancy firm. reduced direct flights and the inability of $3.5 billion to survive the pandemic, avia-
In a first for an Indian no-frills carrier, Middle Eastern or other connecting carri- tion consultancy firm CAPA India said in
SpiceJet recently inducted an
Airbus A330 aircraft on wet FLIGHT PLAN
a report. However, SpiceJet
was in urgent need of capital
RBI issues guidelines for SROs in payments
lease (an arrangement infusion even before the cor-
through which the lessor SPICEJET was in THE no-frills airline’s THE strategy of onavirus outbreak and the Shayan Ghosh and their self-regulatory nisms,” it added. healthy market behaviour
operates the aircraft and also dire need of a
capital infusion
challenges started
with delays in the
taking aircraft on
wet lease is likely to
pandemic has only accentu- shayan.g@livemint.com processes will be adminis- The central bank said while among its members, RBI said.
provides the crew) for medium even before the delivery of Boeing result in incremental ated the liquidity crunch, MUMBAI tered through impartial self-regulation will help “The recognized SRO shall
and long-haul operations, and virus outbreak 737 MAX planes cash generation Centrum Institutional mechanisms, it said. release regulatory resources promptly inform RBI about
T
an Airbus A340 aircraft for Research said in a report on 31 he Reserve Bank of “As the payment ecosystem that can be better focused on any violation that comes to its
cargo operations. It also July. India (RBI) on Tuesday matures and as issues of systemic notice of the provisions of the
announced flights to the UK, after acquir- ers to ferry passengers or take cargo “Covid-19 has further increased risks to issued draft guidelines the number of A self-regulatory importance, it Payments and Settlement
ing coveted slots at London’s Heathrow air- directly from India to the West under air strategic levels and concerns expressed by for establishing self-regula- payments sys- organization will would be more Systems Act or any other reg-
port. The slots are temporary but come at a bubble arrangements,” said a senior air- the auditor are logical and on expected tory organizations (SROs), tems proliferate, serve as two-way appropriate and ulation issued by RBI.”
very opportune time for the carrier. line official, requesting anonymity. lines,” said Kaul. “The key to survival and which will be responsible for it becomes nec- communication encourage better One of the important tasks
SpiceJet’s strategy of inducting wide- “A lot of wide-body aircraft and crew then revival lies in serious recapitaliza- framing and enforcing rules essary, in the compliance. of the organization will be to
body aircraft such as Airbus A330 and are idle because of the pandemic. So, Spi- tion. However, the promoter of SpiceJet for payment systems opera- interest of opti-
channel between The organiza- establish a uniform grievance
A340 under wet lease could be viewed as ceJet has likely got a very good deal on the has shown the highest determination to tors. mal use of regu- its members tion shall serve as redressal and dispute man-
unfocused if these were normal times, said wet lease, possibly paying only for the fight and the focus on cargo is an example An SRO, RBI said, is a non- latory resources, and RBI a two-way com- agement framework for its
a senior airline official. However, under hours the aircraft is utilized as opposed to of this grit and commitment to survive.” governmental organization that the pay- munication members. An SRO shall be
that sets and enforces rules ments industry channel between set-up as a not-for-profit com-
and standards relating to the develops industry standards its members and RBI. That pany under the Companies
conduct of entities in the in respect of system security, apart, it will work towards Act, RBI said, adding that it
industry. These will collabo- pricing practices, customer establishing minimum will also have to be profes-
rate with all stakeholders in protection measures and benchmarks, standards and sionally managed with clear
PharmEasy to merge with rival Medlife framing rules and regulations, grievance redressal mecha- help instil professional and bye-laws.
FROM PAGE 1 up its grocery and pharmacy missing. There are reportedly
platforms. Reliance Industries more than 50 e-pharmacy
and acquisitions in both
e-health and edtech may see
the rise of a few strong firms.
Ltd has been in discussions
with startups across sectors for
potential acquisitions or stake
platforms in the country that
have been pushing the gov-
ernment to notify these rules.
Cos need approvals to
If the merger goes through,
PharmEasy will acquire a
100% stake in Medlife, while
buys. It is reportedly in talks to
buy a majority stake in Chen-
nai-based online pharmacy
The proposed merger of
PharmEasy and Medlife fol-
lows the health ministry issu-
defer AGMs till 31 Dec
the latter is expected to pick up Netmeds. ing in December 2019 a set of
a 19.59% stake in PharmEasy , Amazon’s move saw a push guidelines to regulate sales of NEXT MEDIAWORKS LIMITED
Jayshree P Upadhyay CIN: L22100MH1981PLC024052
according to the filing, a copy back by the All India Organiza- drugs online. brought audit and compliance Registered Office: Unit 701A, 7th Floor, Tower-2, Indiabulls Finance Centre
of which was seen by Mint. tion of Chemists and Druggists Analysts said the e-phar- jayshree.pyasi@livemint.com work under a lot of strain, par- Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013
Tel.: +91-22-44104104, E-mail: diksha.singh@radioone.in,
Mumbai-based PharmEasy (AIOCD), which wrote a letter macy segment is still in its MUMBAI ticularly for mid-size compa- Website: www.nextmediaworks.com
was valued at $700 million in a to Amazon.com Inc.’s chief “early” days with many tech nies. 39TH ANNUAL GENERAL MEETING OF NEXT MEDIAWORKS LIMITED (“NMW”)
T
round led by Temasek Hold- The online pharmacy sector is executive Jeff Bezos calling startups such as Mfine, Practo he ministry of corporate “It is once again reiterated The 39th AGM of NMW will be held on Thursday, September 17, 2020 at 11:00 AM
ings in November 2019. Ben- expected to see an increase in the launch illegal. Copies of and 1mg beginning to stack up affairs (MCA) on Tues- that companies unable to hold (IST) through Video Conferencing/Other Audio-Visual Means (“VC/OAVM”)
galuru-based Medlife was val- mergers and acquisitions. MINT the letter were also marked to different healthcare services day clarified that com- their AGMs for the year ended pursuant to the applicable provisions of the Companies Act, 2013 (“Act”) read with
General Circular Nos. 14/2020, 17/2020 & 20/2020 issued by Ministry of Corporate
ued at $450 million as of June Prime Minister Narendra into a single app. panies would need to seek spe- 31 March 2020 despite avail- Affairs on April 8, 2020, April 13, 2020 and May 5, 2020, respectively, and
2019, according to estimates and a spurt in funding activity. Modi and other government “…From 2015, tech startups cific approvals to defer their ing the relaxations ought to file SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to
transact the business set out in the Notice convening the AGM.
from venture capital invest- The online pharmacy sector officials. disrupted healthcare space by annual general meeting till 31 their applications for seeking
Electronic copy/version of the Notice convening the AGM, procedure & instructions
ment tracker Tracxn. The is expected to witness an According to RedSeer Con- either offering online doctor December. extension of time in holding of for e-voting and Annual Report for FY 2019-20 will be sent to those Members whose
combined entity is likely to be increase in mergers and acqui- sulting, India’s digital health appointments or medicine As per rules companies AGMs for the financial year email ID is registered with the Company/Depository Participants (DP).
valued at $1.15 billion. sitions, with large players set market will expand to $4.5 bil- deliveries. However, with big need to hold AGMs within six 2020 with the concerned reg- Members who have not registered their e-mail address are requested to register the
The lockdown and social to enter the segment. Amazon lion this fiscal, from $1.2 billion players (like RIL and Amazon) months of the fiscal ending. istrar of companies (RoC) on or same - in respect of shares held in electronic form with their Depository
Participant(s); and - in respect of shares held in physical form by clicking on
distancing rules prompted India marked its entry into the in FY20. coming in, and as regulations But because of the covid pan- before 29.09.2020,” said the https://ris.kfintech.com/email_registration/ or by writing to the Company’s
customers to move to online online pharmacy market with With behemoths like Ama- around online healthcare and demic, compa- circular. Registrar and Share Transfer Agent (RTA) viz. KFin Technologies Private Limited,
with details of folio number and self-attested copy of PAN card at KFin Technologies
doctor consultation, treat- the start of trials of ‘Amazon zon and Reliance entering the e-pharmacies ease up, the seg- nies had sought The govt advised MCA also Private Limited, Selenium Tower B, Plot No. 31-32, Financial District, Nanakramguda
ment, medical tests and medi- Pharmacy’ in Bengaluru last sector, government authori- ment will come out with more an extension till the concerned advised RoC to Serilingampally Mandal, Hyderabad – 500 032, or by sending email to
einward.ris@kfintech.com.
cine delivery. Healthcare start- week and plans for similar ties may finally look to notify innovative business models,” the end of the registrar of view all these
Members may obtain the Notice convening the AGM and Annual Report for
ups Practo, NetMeds, 1mg, pilots in other cities. Reliance the e-Pharmacy Draft Rules said a lawyer who works with year. companies to applications ‘lib- FY 2019-20 via email, by updating their email ID by accessing the link
PharmEasy and Medlife are Retail—through its SMART soon without which a clear online healthcare firms, ask- The MCA said
grant extensions erally’ and to https://ris.kfintech.com/email_registration/. Alternatively, Notice of AGM can be
downloaded from the link https://evoting.karvy.com/public/Downloads.aspx.
witnessing a surge in demand Point outlets—plans to scale regulatory framework is still ing not to be named. in a circular that grant extensions
companies have for a maximum of for a maximum of The Company will provide facility to Members to exercise their right to vote by
electronic means. The instructions for joining the AGM through VC/OAVM and the
already been three months three months. process of e-voting (including the manner in which Members holding shares in
granted relaxa- To avoid last- physical form or who have not registered their e-mail address can cast their vote
through e-voting), will form part of the Notice of AGM.
tions by way of minute difficul-
Notice convening the AGM and Annual Report for FY 2019-20 will be available on
allowing them to hold AGMs ties companies have been the website of the Company at www.nextmediaworks.com, and the stock
Govt reviving eBiz-like portal to cut red tape through video conferencing to advised not to wait for the last
help them overcome the chal- date of 29 September to file
lenges of social distancing and their request as a denial of
exchanges viz. BSE and NSE at www.bseindia.com and www.nseindia.com in
due course.
For Next Mediaworks Limited
(Diksha Singh)
travelling. approval could result in a long- Date: August 18, 2020 Company Secretary
Asit Ranjan Mishra A second official, who was After the NDA government update on 18 June 2015. However, companies made drawn process of compound-
asit.m@livemint.com involved in setting up the eBiz came to power in May 2014, it The government recalled representations to the MCA ing penalty and non-compli-
NEW DELHI portal, said he was not sure latched on to the eBiz idea for the usefulness of the portal in that disruptions in logistics ance consequences for the
why the government had shut improving India’s ranking in December 2016 after a disap- caused by the pandemic have companies.
T
he Centre is working to it down and is now building it the World Bank’s doing busi- pointing improvement in
build a single-window from scratch. “The portal had ness ranking. In his first bud- India’s ranking in the doing
platform, integrating integrated almost 20 central get speech on 10 July 2014, the business survey by just one
central and state government government services and was then finance minister, Arun notch to 130. In a high-level
regulatory clearances, almost moving ahead to Jaitley, had meeting of six ministers, Jait-
two years after shutting down integrate state- announced that ley had then finalized an eight-
Business of Life
A software
a similar UPA-era initiative. level services,” he vendor will be all government point strategy to realize the
A senior government offi- said, also selected next services will be target of taking India’s doing
cial with knowledge of the requesting ano- month to set up made available on business ranking to the top 50.
matter, seeking anonymity, nymity. the portal by 31 The first step was to make
the portal for
said the proposed portal is The first offi- December 2014. the eBiz portal mandatory for
more or less in line with the cial said a soft- regulatory In February starting a business, including Daily articles on the workplace,
clearances
government-to-business eBiz
portal developed by Infosys
ware vendor will
be selected in
2015, Jaitley,
along with the
three functions of the ministry
of corporate affairs—registra-
and how it is evolving.
Ltd, which was launched in September for then commerce tion for PAN (permanent
January 2013. “It was a deci- the new portal and within six and industry minister Nirmala account number) and TAN (tax
sion taken at that time. We months of the launch, all cen- Sitharaman and World Bank deduction account number)
have to move forward and use tral government services will country director Onno Ruhl, and registration for Employ- THE MOST AWESOME BUSINESS DAILY THERE IS .
the learning from the earlier be made available on it. “State added 11 new central govern- ees’ Provident Fund Organisa-
portal,” the official said when government services will be ment services on the eBiz plat- tion and Employees’ State To get your MINT copy, give a missed call on 7039035039 or visit
he was asked whether shutting added gradually after that,” form to offer 14 services. How- Insurance Corp. However, the www.mintreaders.com or write to us at subscription@livemint.com
down the portal was a mistake. the official said. ever, the portal saw the last portal never took off.

MUMBAI
REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE
IN AN EDGY MARKET,
SEBI FACES ITS BIG TEST
Ajay Tyagi has 18 more months at the helm of India’s market regulator. What are its challenges?
Sebi chairman Ajay Tyagi has his task cut out. Thanks to the moratorium
on loan repayment, and with large parts of the economy stalling, India Inc.
is in dire need of funds. Investor protection will also be crucial in a volatile
market. REUTERS
Jayshree P Upadhyay ges that mark Sebi’s approach to regula- transparency. Sebi made a modest begin- documents published on its website. average, takes 5-6 years to complete an
mint
jayshree.pyasi@livemint.com tion? And will Tyagi now be able to leave ning last month: it mandated mutual SHORT Under the former chairman UK Sinha, investigation and pass final orders. “The
MUMBAI his mark on Sebi, like his predecessors funds will undertake at least 10% of their STORY who served a 6-year term, there were 11 efficiency of a regulator depends on faster
did? secondary markets trade in corporate such task forces. and quicker orders; this ensures boosting
A
ll eyes are on the stock mar- bonds through the Request for Quote But market watchers feel such exces- investor confidence. Long-pending cases
ket which is flush with THE TASKS AHEAD (RFQ) platform of stock exchanges from WHAT sive outsourcing does lead to a lack of just result in continued market abuse,”
liquidity at a time of pan-
demic-fuelled economic ill I t goes without saying that right on top
of Tyagi’s to-do list will be heightening
winds. That’s why it is puz- surveillance when markets are extremely
1 October. “Gradually mutual funds will
do all secondary transactions through the
RFQ platform,” said a senior Sebi official
In the covid-19 era, the market
regulator will play a crucial role.
ownership over key policy decisions and
disproportionate tinkering of regula-
tions. “Having a committee-based
said a former justice of the Supreme
Court who did not wish to be named.
Sometimes, the action taken is misdi-
zling that the extension of Ajay Tyagi’s volatile, and protecting retail investors on condition of anonymity. Needless to say, the economy approach on rule making ensures that rected. In 2018-19, it was observed that
tenure as chairman of the Securities and from getting burnt while investing. RFQ platform is an electronic platform needs all its gears decisions are not taken from the ivory share pledging as a strategy to raise funds
Exchange Board of India (Sebi) was Shorter timelines for equity issuances where market participants can negotiate to work smoothly, efficiently tower, but too much representation from was being misused by promoters. In June
announced, and received, in a rather and public offers is another key target for their deals in any of the eligible securities. and quickly the industry could lead to regulatory cap- 2019, Sebi tweaked the already compre-
understated manner. Sebi. This fund raising option has “Sebi and the government are talking to ture and using such forums for lobbying hensive and all-inclusive definition of
Perhaps this was by design, to cover up remained one of the most active parts of other financial players such as insurance purposes,” said a former board member pledged shares. Instead, it should have
the unnecessary faux pas regarding the the economy during the pandemic. and pension companies to start subscrib- AND of Sebi who declined to be identified. picked up cases of blatant violations and
Sebi chief’s appointment and reappoint- Stressed non-banking finance compa- ing to AA- and below rated investment- According to Bhargevi Zaveri, senior passed strict and timely orders.
ment by the central government. His first nies (NBFCs) are largely raising money grade paper. In addition, to consider Sebi’s agenda is led by shortened researcher, Finance Research Group, it is Fact is, the final orders have not yet
appointment notification in February through right issues after the relaxation using the stock exchange platform for timelines for equity issuances the uncertainty of tenure which leads to been passed in many prominent cases:
2017 was for five years. This was later of rules. Banks and stressed companies their transactions,” said the Sebi official. and public offers, a push to heads of key financial regulators adopting alleged corporate governance lapses at
revised to three years. are raising funds through qualified insti- Then, Tyagi has the radical idea of deepen the bond markets, and a risk-averse approach. “Tenure uncer- Raymond; disclosure lapses at Sun
“Even when Tyagi was up for reap- tutional placements (QIPs). Of course, offering government securities (GSecs) in to cautiously increase retail tainty might induce a bias towards the Pharma; governance lapses at Indigo; ille-
pointment in March 2020, he had sought barring Reliance Industries Limited’s demat format and tapping new investors participation in equity markets status quo where no decisions are taken gal gains made by brokers who had unfair
a full two-year term, but was only granted ₹53,125 crore rights issue, fundraising who have been crowding the equity mar- or are entirely outsourced to task forces access to NSE’s co-location platform; and
six months. The selection process was activity has been dominated by the finan- kets. In the six months ended June, 3.9 and committees under the expectation alleged insider trading in the shares of
underway for the new chairman but cial services industry. Other sectors are million demat accounts were added, BUT that the next person in office may choose Aptech Ltd by Rakesh Jhunjhunwala.
nowhere close to completion,” said a reg- yet to join the rally. That said, despite the which now total 43.2 million. G-Secs are to implement or abandon them,” he said. According to Stakeholder Empower-
ulatory official who declined to be identi- buzz, the timelines for approvals can be currently issued through auctions con- Tyagi has the unenviable job of ment Services’ Gupta, it is the system
fied. Now, Tyagi has 18 more months to shortened. An initial public offer takes ducted by the Reserve Bank of India reducing the timelines for key THE INVESTIGATIONS which prevents the regulator to discharge
reforms. On an average, the
lead Indian’s capital markets. In the cov- about 6-12 months to complete; a rights
id-19 era, the market regulator—which issue can be completed in 3 months’ time.
has the twin responsibility of investor During the pandemic, Sebi adopted an
(RBI). As things stand, retail investors
cannot directly bid for this instrument,
but can do so through brokers. This radi-
regulator has taken a minimum of
8 months to push reforms, due to
I ndian corporations still believe that its investigative responsibility with effi-
fewer disclosures are always better. ciency. That said, Tyagi can be credited
Take a recent example: A Mint analysis of for passing orders in long-pending high
protection as well as market develop- out-of-the-ordinary approach to ensure cal idea, if implemented, will be a major a committee-based approach disclosures made by Nifty50 companies profile cases. This included passing the
ment—will play a crucial role. Needless to the survival of corporates, mutual funds reform. Tyagi will, of course, have to con- in their March quarter earnings showed final order in the fraud case by Reliance
say, the economy needs all its gears to and brokers. Every regulation currently vince the government and the Reserve that they made selective disclosures, fail- Industries Ltd after nine years; banning
work smoothly, efficiently and quickly. stands relaxed, particularly for fund rais- Bank of India. The other major agenda reducing timelines for key reforms. On an ing to observe the intent of the regula- Price Waterhouse for its role in Satyam
Tyagi has his task cut out. Thanks to ing. This is indeed unlike Sebi’s usual for Tyagi is to work on strengthening gov- average, the regulator, under Tyagi, has tion. Computers scam after eight years; and
the moratorium on loan repayment, and response which is largely governed by ernance at Indian corporates and ensur- taken a minimum of eight months to push In such cases, Sebi is supposed to inves- the unfair access case at NSE after three
large parts of the economy stalling, India investor protection. ing direct listing by Indian companies reforms, thanks to his committee-based tigate, pass orders and impose monetary years.
Inc is in dire need of funds. As things At this juncture, it is the debt and credit overseas. There’s also the highly polaris- approach. This has led to criticism that, penalties. But of its 700-employee work- Sebi has also come out with a settle-
stand, the banking system is not manag- market which is in need of immediate ing issue of ensuring that the chairman of while there have been changes brought in force, only about 200 employees are in ment scheme 2020 for entities which
ing to meet that need. Sebi needs to rem- attention. The pandemic exposed the a board has a non-executive role—this by the market regulator, the impact on investigations and enforcement. Clearly, misused the stock exchange platform for
edy any procedural kinks in equity fund problems in India’s credit market. There was deferred by two years. The extension the ground has been marginal. Sebi doesn’t have the bandwidth to tackle tax evasion.This one-time settlement
raising and help Indian corporates think is an acute lack of liquidity and trading in ends on 13 January 2022, which is before To be sure, under Tyagi’s chairman- each and every disclosure violation. For scheme could reduce the case backlog at
of the corporate bond the secondary market Tyagi’s 18-month tenure ends. The chair- ship, several regulations have gone comparison, the US Sebi by at least 10-15%.
market as a viable alter- for papers rated below person would look at implementing this through an overhaul—from insider trad- Securities and Exchange If we look at the past
native. Sebi needs to remedy any AA rating. In the past 5-6 sea change that will impact 162 listed ing, prevention of fraud, and listing and Commission (SEC) has The US Securities and three Sebi chairmen,
Of course, it also procedural kinks in equity years, we have seen the companies before he demits office. delisting norms to fund raising, mutual close to 1,500 employees Exchange Commission (SEC) they have all ushered in
needs to ensure that amount of outstanding Finally, Sebi last week streamlined its funds, portfolio management, foreign doing this role. big reforms. Under M
investors find partici- fund raising and help Indian corporate bonds in India investor grievance redressal process to portfolio investor and governance norms. As per the latest data, has close to 1,500 employees Damodaran, it was
pating in the equity and corporates think of the growing from ₹15 trillion ensure that complaints do not fall In some cases, existing regulations a whopping 408 enquiry in investigations and cracking down on the
bond markets both easy to ₹33 trillion in between the gaps. But the regulator have seen quick, successive tinkering. For proceedings are pend- opaque system govern-
and safe. It needs to corporate bond market as a 2019-20, reflecting a needs to also bring in efficiency in passing instance, the regulations for Real Estate ing with the Board. enforcement. Sebi has only ing participatory notes
keep an eagle eye on CAGR of about 14%. But orders. Investment Trusts (REITs) and Infra- These are over and (p-notes). CB Bhave
market manipulation in viable alternative it is still only about a structure Investment Trusts (InvITs) above the close to 1,400 around 200 in a similar role reformed mutual fund
these edgy times. third the size of the THE CHALLENGES have seen five amendments in the past probes and investiga- distribution and curbed
“The extension of (Tyagi’s) tenure will banking credit system.
ensure continuity in completing the Sebi has mandated all primary issuan-
unfinished agenda…to leave behind a rich ces to happen through the stock
S ince its inception, Sebi’s institutional
makeup has strengthened, but it still
remains a top-led organisation. This is
three-and-a-half years. Norms for credit
rating agencies have gone through more
than six tweaks in the past four years.
tions pending with individual officers at mis-selling. Taking a cue from the Sahara
Sebi. scam, UK Sinha successfully lobbied with
In his report, Justice AR Dave wrote the centre to get the market regulator
legacy for our capital markets,” said Cyril exchange platform. But it is not manda- quite unlike its older peer, the RBI, where This, Tyagi has done, through more that a considerable amount of time is more powers to pass orders on collective
Shroff, managing partner, Cyril Amar- tory for secondary market transactions. even if outside hires become governors, than 20 committees, working groups and taken for the completion of a case which investment schemes (CIS).
chand Mangaldas. Just what is the unfin- Sebi is moving to ensure that all second- they implement their ideas in conso- task forces since March 2017. All these hampers the regulatory effectiveness of In 18 months’ time, we will know
ished agenda before the market regulator ary transactions also happen through nance with institutional knowledge. committees are chaired by outside the enquiry proceedings. whether Tyagi has joined the reformer’s
though? What are the structural challen- stock exchanges for liquidity build up and Now, Tyagi has the unenviable job of experts, according to Sebi’s board agenda As per industry observers, Sebi, on an club or not.

MUMBAI 09
Oracle weighs
Large global brands remain ‘Investing in data, AI
bid for TikTok’s
US business is crucial for country’
Bloomberg
feedback@livemint.com
wary of advertising on FB Ayushman Baruah
ayushman.b@livemint.com
BENGALURU
O
racle Corp., the world’s
I
second-largest soft- ndia has the right ecosystem
ware maker, is weigh- Indian arms of Diageo, Pepsi, Coca-Cola have paused promotions over hate speech and an efficient talent pool to
ing a surprise bid for part of create millions of new-age
TikTok’s business, seeking to jobs and drive a data and artifi-
rival Microsoft Corp. in the race Suneera Tandon & Lata Jha is fast growing and is pegged at an cial intelligence (AI) revolution
to acquire the viral video NEW DELHI estimated ₹17,000 crore with brands to become a global power-
streaming app, according to engaging on multiple platforms house, said top executives of
O
people familiar with the matter. ver a month after sev- including Facebook, Google search, Infosys Ltd and Wipro Ltd at a Wipro chairman Rishad Premji
The company, controlled by eral large global cor- YouTube banners, apart from panel discussion organized by said we need to identify a
billionaire Larry Ellison, has porations, including engagement on Instagram and Twit- Mahindra IT industry body Nasscom on comprehensive plan for India’s
Finance
made a preliminary approach Unilever, Coca-Cola ter. But concerns around the spread raises
Tuesday. artificial intelligence story. MINT
to other parties, including the and Diageo, paused of fake news, hate speech and con- ₹3,089 cr As per Nasscom, data and AI
venture capital firm Sequoia advertisements on social media tent moderation continue. through could play a crucial role in real- space.” Rao said around half a
Capital, to partner with it in a websites such as Facebook and A recent article in the Wall Street rights issue izing India’s 2025 vision of million of India’s 4.3 million IT
bid for the app’s operations in Instagram over hate speech, the Journal said that a Facebook execu- bit.ly/2Ya69ic inclusive development and add workforce are working in data
the US Canada, Australia and Indian arms of some of these compa- tive in India went soft on hateful at least $500 billion to its gross analytics and AI, and “this num-
New Zealand, the people said, nies continue to shun these plat- posts by members of the ruling domestic product, besides ber can go up further”.
asking not to be identified. forms. Bharatiya Janata Party. In the after- helping the economy emerge Many leading global organi-
It isn’t clear why Oracle, The move to boycott some social math, the Congress party has written stronger from the crisis. zations have already estab-
which focuses on business cus- media platforms gathered pace in to Facebook CEO Mark Zuckerberg “We have to identify a com- lished AI centres of excellence
tomers and has virtually no the last week of June with several to look into the allegations, accord- prehensive plan for India’s data in India to access its talent pool
investments in consumer apps companies stating that they will stop ing to a report by the Hindustan and AI action story…and iden- and leverage the startup eco-
or social media, would want to advertising on these websites for Facebook has always maintained that it does not profit from hate. REUTERS Times newspaper. tify data of national importance system. As India scales up on its
acquire TikTok. However, periods ranging from 30 days to sev- Facebook has maintained its based on selected initiatives data and AI journey, it will have
co-founder Ellison is one of the eral months, seeking greater social media platforms, resumed largely led by global brands, will con- stance on the matter, stating that it and prioritize data sets that to focus on “responsible AI”
few Silicon Valley moguls to accountability on hate speech, dis- them earlier this month, said a per- tinue at least for some more time. does not profit from hate. require government atten- and create a self-governing
openly support President crimination and misinformation. son privy to the matter. “This will continue for some time In a 1 July Facebook blogpost, tion,” said Wipro chairman Ris- process that takes ethics and
Donald Trump. Ellison, whose Since then, com- and one needs to see Nick Clegg, vice-president, global had Premji, adding that the zero bias into account.
company was once among the panies such as Dia- AD BLOCK what action needs to affairs and communications, Face- country has the ecosystem to The observations by indus-
industry’s most aggressively geo, PepsiCo, Levi’s be taken. Facebook book, said that: “Billions of people draw talent, academia and try captains comes a month
acquisitive, hosted a fundraiser and Coca-Cola have THE move gathered LEVI’S, which had BRAND experts say does need to get its use Facebook and Instagram startups to drive revolution, but after government policy think
at his estate for the US presi- paused paid pro- pace in June-end with stopped ads on
firms stating they many social media
that the temporary
disengagement with
act together. They because they have good experiences it must focus on “moving tank NITI Aayog released a
dent in February. The entry of motions on Insta- will stop advertising platforms, resumed the platforms will go are getting into con- — they don’t want to see hateful con- beyond pilots to scalability”. draft document on “Responsi-
Oracle would challenge Micro- gram and Facebook for 30 days or more them earlier in Aug on for some time troversies too often; tent, our advertisers don’t want to Investing in data and AI can ble AI for All” for stakeholder
soft’s bargaining position, as in India. The story better stakeholder see it, and we don’t want to see it. create millions of jobs in India, discussion.
the Redmond-based company was first reported management is There is no incentive for us to do said U.B. Pravin Rao, Nasscom “Building access, inclusion
had been the only party to pub- by The Economic Times on 18 August. Company executives and brand required,” said an executive at a anything but remove it. Facebook chairman and chief operating and skill will be the key ena-
licly confirm it was in talks with However, apparel brand Levi’s, experts reckon that the temporary packaged goods company. does not profit from hate.” officer, Infosys. “We need to blers,” said Anant Maheshwari,
TikTok owner ByteDance Ltd. which had stopped ads on several disengagement with the platforms, India’s digital advertising market suneera.t@livemint.com build the capabilities in this president, Microsoft India.
MG Motor India inks Data, AI to add $500 bn to GDP by ’25: report

pact with Zoomcar Nandita Mathur
nandita.m@livemint.com
The report also highlighted ministry with specific use-
the importance of building an cases, and creating schemes to
NEW DELHI AI innovation ecosystem and to engage the AI ecosystem,
Salman S.H. petitor to bigger established car seek greater participation from including industry, startups,
T
salman.hameeth@livemint.com manufacturers such as Tata o harness the full poten- the private sector and entre- civil society and the academia.
BENGALURU Motors Ltd and Mahindra and tial of data and artificial preneurs. Although India has 1,600
Mahindra Ltd. intelligence (AI), which “The adoption of data and AI deep-tech startups, with the
M
G Motor India Pvt. Ltd During the nationwide lock- could add $450-500 billion to is increasingly becoming a dif- pool growing at a 40% com-
has got into a strategic down, mobility and rental start- the country’s gross domestic ferentiator for business suc- pounded annual growth rate
partnership with car- ups witnessed demand slow- product (GDP) by 2025, India cess. AI today is driving large- (CAGR) since 2014, the pace of
sharing platform Zoomcar to down due to the restrictions on must take coordinated action scale digital inno- AI innovation is
offer vehicle subscription ser- public commutes. Greg Moran, to enhance its capabilities in vation and Report highlights lagging. So, an
vices to commut- chief executive, key sectors such as agriculture, t r a n s f o r m i n g the importance of ecosystem of
ers. MG Motor will Zoomcar, how- tourism, energy, logistics and every industry building an AI innovation
MG Motor will leverage ever, said he accounting and financial servi- critical to eco- innovation involving indus-
leverage Zoom- expects a “signifi- ces, said a new report by indus- nomic growth.
Zoomcar’s Debjani Ghosh, president,
ecosystem, greater try bodies, start-
car’s technolo- technologies, cant” increase in try body Nasscom. Nasscom. India has the ups and academia
gies, such as GPS car subscriptions Nearly 45% of the value is potential to participation from could be crucial to
such as GPS private sector
t r a c k i n g , as consumers look likely to be delivered by three “Data and AI’s true potential become a global accelerate data Group revenue fell 13.2% in the quarter ended 8 August, driven
on-ground fleet tracking and to avoid public sectors, including consumer emerges from its ability to drive hub for data and and AI efforts, it by a 38% drop in in-store sales of clothing and housewares,
m a n a g e m e n t , vehicle scheduling transport and goods and retail, agriculture transformation across multiple AI. The moment is added. Marks & Spencer said. REUTERS
logistics support ride-hailing servi- and banking and insurance, it sectors through a diverse range now, to support and grow a “AI has become a strategic
and vehicle
scheduling.
ces without the
commitments of traditional car
Zoomcar will also manage ownership.
added.
The report, Unlocking Value
From Data And AI, laid down an
of applications. The report
articulates the key structural
steps that India needs to take to
vibrant AI ecosystem in India,” lever for economic growth
said Anant Maheshwari, presi- across nations and will con-
dent, Microsoft India. tinue to be one of the most cru-
Marks & Spencer to
the subscription programme Zoomcar is backed by M&M,
on MG’s behalf. The platform Ford Smart Mobility and
will extend MG’s latest vehicles Sequoia Capital, besides debt
action plan that can play a cru-
cial role in contributing to
effective covid-19 response and
realise the value of this oppor-
tunity,” said Debjani Ghosh,
president, Nasscom.
The report suggests several cial technologies of the future.
key action plans to catalyse data In order to harness its full
utilization and adoption of AI in potential, India needs to
eliminate 7,000 jobs
in line with Zoomcar’s 2-, 24-, investors InnoVen Capital and emerge stronger as an econ- The action plan focuses on India, including the creation of embrace AI innovation and
or 36-month subscription Trifecta Capital. Zoomcar has
options, the companies said on so far raised around $150 mil-
Tuesday. lion, including a $30-million
omy, besides supporting its
social initiatives and equitable
growth and enhancing talent
building a coordinated pro-
gramme across five building
blocks—strategy, data, technol-
a central apex body to steer its regulation with an open, inclu-
execution, in collaboration sive, principal-based and a col-
with various ministries, indus- laborative mindset,” said Ravi
due to pandemic
Since its launch in India in round in January led by Sony and capabilities to position ogy stack, and talent and execu- try groups and other stakehold- Shankar Prasad, minister of law
May 2019, MG Motor has Innovation Fund, and other itself as the global hub for data tion—to capture the opportu- ers, identifying data sets of and justice, communications, AP demic accelerates the shift to
emerged as an important com- existing investors. and AI services. nity. national importance in each electronics and IT. feedback@livemint.com online shopping, with many
LONDON consumers shunning tradi-
tional stores amid concerns
B
ritish retailer Marks & about covid-19 and govern-
Spencer plans to elimi- ment-imposed restrictions
nate about 7,000 jobs designed to slow the spread
Singapore gives Indian lenders a $670 mn boost Civic services in hill as it streamlines manage- of the virus.
ment and store operations The Debenhams depart-
after sales plunged during the ment store chain in Britain,
Swaraj Singh Dhanjal
swaraj.d@livemint.com
states set to go digital nies such as Kotak Mahindra
Bank, Axis Bank and SBI Life
covid-19 pandemic. for example, announced
The job cuts, which repre- another 2,500 staff cuts in
sent about 9% of the com- recent weeks.
MUMBAI Insurance Co Ltd. GIC and pany’s workforce, will occur “There remains substantial
Temasek have been among the Pretika Khanna tary, ministry of housing and over the next three months uncertainty about market
T
he Singapore govern- most active foreign investors pretika.k@livemint.com urban affairs said on Monday . and affect Marks & Spencer’s conditions and the duration
ment and its investment across public and private com- NEW DELHI The National Informatics central office, regional man- of social-distancing meas-
arms have poured in panies in India. Centre is working with the min- agement and UK stores, the ures, and we are retaining a
M
$670 million in ICICI Bank Ltd, According to data from deals unicipal services, istry of housing and urban London-based grocery, cautious approach to plan-
HDFC Ltd and Bandhan Bank tracker Venture Intelligence, including building per- affairs and municipal corpora- clothing and housewares ning for the balance of the
Ltd in the first half of August, since 2015, GIC and Temasek missions, will go online tions to use open source soft- chain said Tuesday. year, Marks & Spencer said
showed exchange filings made have committed almost $9.75 in India’s 12 hill states and Union ware and build local capacity. Sophie Lund-Yates, an in a statement.
by the private sector lenders. billion in Indian companies. territories by March 2021. “We target to operationalise analyst at finan- Group reve-
The government of Singa- These investments in Indian Building permissions will be OBPS by Dec, 2020 and all cial services firm The job cuts, nue fell 13.2% in
pore was the biggest individual public markets by Singapore operational by municipal services Hargreaves which represent t h e q u a r t e r
investor in the qualified institu- indicates the strong foreign December 2020 Building by March, 2021. Lansdown, said about 9% of the ended 8 August,
tional placements of ICICI capital flows that markets have and other munici- permissions will State/ UT officials the cuts company’s driven by a 38%
Bank and mortgage financier Since 2015, GIC and Temasek have committed $9.75 billion in seen in the last few months, pal services in the be operational by showed their full stemmed from drop in in-store
workforce, will
HDFC, investing ₹1,662.7 crore Indian companies. BLOOMBERG driving recovery from the lows first half of 2021, Dec 2020 and commitment to Marks & Spen- sales of clothing
and ₹1,336.9 crore, respec- of March due to the pandemic. according to the adhere to the cer’s under- occur over the and housewares,
tively. In addition, Singapore’s are bullish and betting big on dential Life Insurance Co Ltd Sunil Khaitan, India head, workplan of the
other municipal scheduled time standing that next 3 months the company
state investment firms GIC and India financials,” said a banker worth ₹842 crore in June, and global capital markets at Bank ministry of hous- services in the frame,” Mishra drastic measures said. Some 68%
Temasek picked up shares who advised one in Au Small of America said the capital ing and urban first half of 2021 added. While were needed to of Marks & Spen-
worth ₹1,254.7 crore and of the above men- In July, Singapore Finance Bank Ltd flows into domestic stock mar- affairs. The move building plans are survive. cer’s orders were delivered to
₹769.5 crore each in Bandhan tioned firms on state entities had where they pur- kets are expected to continue in is the latest by first in line to go “M&S has realized it needs customers’ homes during the
Bank’s secondary share sale, fundraise. also invested chased shares the coming months and this government services to go online, other municipal services to act now if it wants to secure quarter, compared with 29%
when its promoter entity sold a To be sure, ₹688.9 cr in the worth ₹103.5 will drive more fundraising by online to ensure that social dis- include birth and death regis- the longevity of the busi- during the same period last
20% stake to trim its sharehold- these are not the crore in May. In Indian companies. tancing norms are followed. trations, water connection and ness, she said. year.
ing to comply with the Reserve only financial ser-
IPO of Mindspace July, Singapore “Investors are keen to back “Reviewed progress of e-gov- licences. Since the covid-19 pan- “Coronavirus has exacer- The company acknowl-
Bank of India’s rules. vices investments Business Parks state entities had companies that are intent on ernance of all municipal servi- demic, the ministry has trained bated existing fault lines – edged that there is a new nor-
Collectively, these investors by Singapore in Reit also invested raising funds to pay off debt and ces including Online Building its focus on making procedures namely that shopping habits mal in the offing.
have bought shares worth Indian financial ₹688.9 crore in improve their balance sheet. Permission System (OBPS) in all online. In the last month, the have changed and M&S has “These proposals are an
₹5,023.8 crore (around $670 services compa- the IPO of Mind- Our discussions with investors 8 States of North Eastern ministry has launched an online been slow off the mark meet- important step in becoming a
million) during the period. nies since the covid-19 pan- space Business Parks Reit. indicate that many are willing Region, Uttarakhand, Himachal platform to market real estate ing those shifting demand leaner, faster business set up
“The last few deals have seen demic began. Singapore’s Singapore state investment to go beyond the top tier com- Pradesh & UTs of Jammu & projects along with a portal for patterns.” to serve changing customer
big sums of capital coming investment entities have also firms are already major inves- panies and focus on well gov- Kashmir and Ladakh today,” hawkers and street vendors to Retailers have eliminated needs, chief executive offi-
from the Singapore state. They picked up shares in ICICI Pru- tors in Indian financial compa- erned mid-cap names,” he said. Durga Shanker Mishra, secre- apply for loans online. thousands of jobs as the pan- cer Steve Rowe said.

MUMBAI PERSONAL FINANCE
How the rush into closed-end EXPENSE

ACCOUNT
equity funds failed investors MONIKA HALAN
To read all of Monika Halan’s earlier columns, go to

www.livemint.com/expenseaccount
Most of these funds were launched in 2017 and 2018 and have underperformed peers and benchmarks
CATCHING ELUSIVE
Neil Borate them after 2018, with closed-end
TAXPAYERS STILL A
Risky affair
neil.b@livemint.com
Here are the number of active closed-end schemes available across AMCs. Most closed-end schemes have a
equity fund launches nosediving
in 2019 and 2020. This was more a WORK IN PROGRESS
I
time frame of three-four years, which has proven woefully inadequate for delivering good returns in equity.
n the normally cosy club of result of the abolition of upfront
asset management companies AMC-wise distribution Annual launches commissions by Sebi in Septem-
(AMCs) and distributors, ber 2018. Upfront commissions Understand Low rank
Sundaram AMC has the maximum number of closed-end Jump in new funds in two years was due to the risks India figures low on income tax as a % of GDP and per
something unusual happened schemes, while Edelweiss AMC has the lowest count. the market rally, particularly in mid-caps involved payment of several years before capita income.
last month. A distributor, Sundaram AMC 33 and small-caps. of commissions at the beginning investing
Mumbai-based Subras Invest- 43 itself. Charging this was particu- in high-
Taxes on personal income Per capita income
ICICI Prudential AMC 19 No. of closed-end schemes as a % of GDP (2018) in 2019 (in $)
ments, broke ranks and put 40 larly easy in closed-end funds. yielding
SBI AMC 10 PSU bonds India 2.5 2,104
together some investor com- UTI AMC 9 Closed-end funds also come
plaints about HDFC AMC and sent without track records and, hence, bit.ly/348Bl59 Mexico 3.4 9,863
Axis AMC 6
them to the Securities and Aditya Birla Sun Life AMC 5 Total get culled out of the recommenda- Turkey 3.8 9,042
Exchange Board of India (Sebi). 106 tion lists of some planners.
Nippon India AMC 5 Korea 5.2 31,762
The investors’ complaint was “I only recommend funds with
DSP Investment Managers 3 Japan 6.0 40,247
about HDFC Equity Opportunities HDFC AMC 3 at least a 10-year track record.
Fund Series II - 1100 days, a three- IDFC AMC 3 Most of such funds have not been UK 9.1 42,300
year closed-end scheme launched Kotak AMC 3 able to do what they are expected France 9.5 40,494
in July 2017 with “downside pro- BOI Axa AMC 2 7 8 7 to,” said Kirtan Shah, chief finan-
tection” embedded in its struc- cial planner at Sykes and Ray US 9.9 65,280
L&T AMC 2
ture. It had delivered a return of 1 Equities (I) Ltd. Germany 10.4 46,259
Tata AMC 2
about -17% (-5.4% CAGR) when it Edelweiss AMC 1 2012 2014 2015 2016 2017 2018
Last but not least, take the Source: OECD, World Bank, Mint research
matured in July 2020. The AMC generic macroeconomic analysis
Data as of 16 August 2020 UTI Master Unit scheme launched in 2003 has been excluded due to its unique nature
asked investors to roll over in sales presentations with a pinch
Only currently active closed-end schemes considered Source: Value Research
A
(extend) the scheme by another 18 of salt. As per the investors’ com- tweet from a government handle, now deleted, was the
months and some Subras Invest- plaint by Subras Investments, the cause of much upset with social media going a little nuts
ments’ clients agreed. But the side protection” through the pur- March 2020, the fund didn’t exer- ing, the practice of launching sales material referred to themes on the increasing compliance burden on the Indian tax-
damage had been done and the chase of put options, a premise cise the put options and make use three-four years closed-end equity such as bottoming of the non-per- payer and the increasing intrusion of big government into citi-
distributor wanted some answers that seemed to be wise given the of the protection, he said. schemes is an embarrassing epi- forming asset cycle, recovery in zens’ lives. The tweet lists 11 categories of financial transactions
to how a scheme, with “downside years of market stagnation and cri- Second, the scheme changed its sode. This is particularly apparent the capex cycle and shift from that, if made, will trigger reporting by the receiver of the money
protection” could underperform sis that followed. Put options give benchmark from Nifty 500 to when the large number of such unorganized to organized sector, to the income tax department. Already banks and mutual funds
so badly. the holder the right but not the Nifty 50 soon after launch but funds launched in 2017 mature but many of these analyses were report transactions above a certain threshold. The scope of this
In comparison, the S&P BSE obligation to sell a security at a invested in the broader market this year with poor returns. either incorrect or simply not reporting is set to expand (see bit.ly/3h7JqL2)
100 TRI was up about 13.2% over specific price (the security can be more aligned with Nifty 500. This Second, the idea of closed-end implemented in practice. Mint has The shops, banks, mutual funds, hotels and so on will make the
the same period, in absolute terms. the index itself). These options created a mismatch between the funds itself is a questionable com- seen the sales material. disclosure to the tax department, and not the taxpayer. The gov-
The HDFC case is gain value when actual portfolio of the scheme and promise on an inves- Investors who ernment hopes to find a discrepancy between the income dis-
not isolated. A Mint The responsibility stock prices fall. the downside protection it had. tor’s liquidity. “I do The idea of want to buy closed- closed during the tax filing process and the spends made. As we
analysis shows that for offering these The scheme’s illus- Third, it ended up with three not recommend closed-end funds end funds in the file our tax returns for financial year 2019-20 (last year), we will see
approximately funds is not with tration showed a different fund managers over the equity at all for time itself is a future should a box that only some people need to tick. These are people who
₹26,000 crore sits in the AMCs alone. 12.8% return if the course of its life. frames of less than questionable approach them cau- claim that their gross taxable income (before applying any deduc-
Distributors who Nifty was at 11,000 A person with knowledge of the three years. I also do
closed-end funds, tiously. A short time tions) is ₹2.5 lakh or less, but have made transactions of ₹1 crore or
compromise on
most of which were levels at maturity. matter, who spoke on the condi- not recommend frame such as three more in a current account, have paid ₹1 lakh or more in electricity
launched in 2017 and sold them must Illustrations are sub- tion of anonymity, clarified that closed-end funds. A an investor’s years for a closed-end bills and have spent ₹2 lakh or more on foreign travel. We see
2018. By and large, share the blame ject to ifs and buts but the fund manager exits were lot of things can liquidity equity fund is a major these people around us, they are the ones pulling out wads of cash
they have a three- the actual com- beyond the control of the AMC change in a scheme gamble. Note that to pay for high-value gadgets, jewellery, hotel bills and more. They
four years tenor and pounded annual and that it was not humanly possi- such as the fund man- you are required to are the ones paying 50-70% of property purchases in cash.
their three-year average return is growth rate (CAGR) turned out to ble to time the markets by exercis- ager or the benchmark and I exit closed-end funds after the It is the unwillingness of the Indian citizen to pay tax that has
currently close to zero. This, be radically lower at -5.4% (-17% in ing puts in March. He added that should have the option to exit in specified tenor unlike equity- made government after government try to bring them in the tax
though, is not hugely different absolute terms) when it was rolled the broader markets had under- that case. Apart from this, even an linked savings schemes, where net. India’s direct tax (personal and corporate) to GDP ratio at just
from what active funds have deliv- over. performed select large-cap stocks investor’s goals might change and your money gets locked in for under 6% is lower than that of other countries with similar GDP.
ered. For instance, the three-year According to the complaint, causing the fund to also underper- he might need the money early,” three years but you can stay in the But look beyond these numbers and you see that the personal
average return for multi-cap funds HDFC AMC misrepresented the form. Also, it was not possible to said Suresh Sadagopan, founder, fund for longer. income tax to GDP ratio of India is lower still (see graph). We are at
is 2.5%. However, the horizon of scheme to investors and then mis- buy puts on Nifty 500. The person Ladder 7 Financial Advisories. The lack of liquidity can also hit the lower end of the spectrum on per capita income as well. There
three to four years simply isn’t managed it. The complaint raises also added that HDFC AMC has Sadagopan added that he found you hard if there is an emergency. is a link between more citizens paying personal income taxes and
long enough for equity funds. several technical points with only launched three closed-end no evidence of closed-end Be doubly cautious if the fund the ability of the government to spend on education, health, infra-
But the responsibility for offer- respect to the scheme documents equity schemes so far, a much schemes outperforming their comes with exotic features like put structure, social security and other
ing these funds is not with the and advertising material. lower figure than its peers. open-ended counterparts. options that make the illustrations The next few needs of a welfare state. But out of 1.3
AMCs alone. Complaints notwith- Legal arguments aside, Yash Emails to HDFC AMC did not The industry itself soured on and back tests look good. months will tell billion, just 15 million pay taxes. Less
standing, distributors who sold Sanghvi, head, business develop- elicit any response.
them must share the blame. ment team, Subras Investments, us how wily the than 7% paid taxes of ₹1.5 lakh, almost
53% paid less than ₹1.5 lakh in taxes and
spelt out three major grievances LESSONS FROM THE CASE For more stories about how to manage your non-taxpayer a huge 40% paid no taxes at all.
THE HDFC CASE with the HDFC scheme in a con- The HDFC matter will be settled money life, listen to the podcast Why Not Mint and the income India needs more people to pay
HDFC Equity Opportunities Fund versation with Mint. First, the by Sebi, but there are some wider Money with Mint’s Personal Finance team on tax dept can be taxes because the capacity to pay is
Series II - 1100 days was launched scheme had the downside protec- questions it raises. htsmartcast.com. Invest smartly to make every there—we see it anecdotally in spends
on 15 June 2017 with a tenor of tion feature. However, when the First, for an industry preaching penny count. and in data on consumption and
three years. It’s USP was “down- market did finally correct in the value of “long-term” invest- investment. Governments have tried various schemes, including
amnesty, but the unwillingness to pay tax is like a badge of hon-
our for Indians who openly mock at those who do have to pay.
Short of resorting to a regressive consumption tax (on spends of
citizens), the government is trying to use big data, disclosures and
the mapping of PAN to Aadhaar to figure out the list of evaders.
Class I heirs of a woman dying intestate are her husband and children Will it increase compliance? Not for people who are paying
taxes already, but hopefully for those who do not. If you connect
the dots, you’ll see the introduction of faceless scrutiny, where the
ISTOCK ability of an extractive tax department to hound honest taxpayers
Rishabh Shroff one of her children. We rec- as my mother did not agree demise of your grandfather, is greatly reduced, comes along with the use of big data to suss out
ASK MINT
m ommend she contacts a coun- to what’s written? his property would be divided those who evade taxes. Will it work? How you think about this
My father-in-law had a flat. E S TAT E P L A N sel and prepares a suitable will. —Name withheld on request equally among class I heirs— depends on which side of the tax threshold you sit. For me demon-
After his death, the house Section 63 of the Indian his wife and children. The etization was a big revelation of how almost everybody seemed to
was transferred in my erned by the Hindu Succes- My grandfather had Succession Act (ISA), 1925 lays property would be divided have non-tax-paid income. Even people who otherwise are intel-
mother-in-law’s name. He sion Act, 1956. We assume that bought a property and down the essentials for a valid equally between your mother lectually and morally very upright and have very high standards
didn’t leave any will. After the property is registered in made a house in my will. A will can be executed by and her sister. Further, for others. Their justification of taking payments in cash was: why
my mother-in-law dies, will the mother-in-law’s name. mother’s name. My any person by affixing their depending on the location of will we give the government our money, it does not know how to
the house be divided and Post her demise, and in case mother’s sister was staying signature, which would then the property and other assets spend. This column is not about a rebuttal to this straw man argu-
given to their three chil- she has not executed any testa- with us and my grandfa- need to be signed by two wit- forming part of your grandfa- ment, but it was stunning coming from the erudite mouths.
dren or can she give it to mentary document, the prop- ther in this house. After his nesses. It is not mandatory to ther’s estate, his heirs may file Unless more Indians pay direct income tax, India will continue
any one of them? erty would be divided equally She may execute a will, death, we found a written register a will. Hence, the will for letters of administration or to operate at the low end of the spectrum with very limited state
—Name withheld on request among Class I heirs. Class I bequeathing the property to will by him on a paper stat- executed does not meet the succession certificate, as may financial capacity. The use of technology to both attempt to
We assume that you are heirs of a female dying intes- any person she wishes. Fur- ing that he is giving the requirements and would not be required to inherit the said reduce the harassment by the tax department and to catch the
Hindu by faith. Note that testa- tate would be her husband and ther, she may also conduct a property and the house to be valid. Hence, this property assets. unwilling Indian taxpayer is very welcome. The next few months
mentary succession for Hin- children. Thus, upon her lifetime transfer of the prop- the sister with my mother’s would be bequeathed in Rishabh Shroff is partner, will tell us how wily both the non-taxpayer and the tax depart-
dus is governed by the Indian demise, the property would be erty such as transfer to a trust consent. The will isn’t reg- accordance with the intestate Cyril Amarchand Mangaldas. ment can be. This is still work in progress.
Succession Act, 1925 and divided between her children for the benefit of her children, istered or signed by a wit- succession law. Queries and views at mint- Monika Halan is consulting editor at Mint and writes on house-
intestate succession is gov- equally. or even a direct lifetime gift to ness. Is this document valid Accordingly, upon the money@livemint.com hold finance, policy and regulation
Beware the six charges that may eat into your returns from a unit-linked insurance policy
ISTOCK
Disha Sanghvi recommend mixing insurance For example, if the PAC on account to calculate it. Goel fund options every year for a after the deduction of the dis-
disha.s@htlive.com and investment needs because your policy is 15% and your said these expenses are fixed number of times. If you continuance charge. It is
of the lack of transparency and premium is ₹60,000, then deducted on a monthly basis exceed the limit, you will be charged as a percentage of the
W
ith the economy the various charges. “We are ₹9,000 will be deducted from from the fund value. charged, which ranges from fund value or as a percentage
gradually opening usually lured by the guarantee the investment towards PAC Administration charge: ₹100-500 per switch, said of the premium. For a policy
up, some insurers aspect and the idea that we will and the rest will be invested. It The insurer deducts them Goyal. The partial withdrawal with a premium of over
are seeing a revival in demand get something back while our pays for expenses such as every month for the adminis- is allowed only after comple- ₹25,000, the maximum dis-
for unit-linked insurance life is also covered. Some peo- agent commission, medical tration and maintenance of the tion of five years and if all due continuance charge cannot
plans (Ulips) which had taken ple also fall for the fact that the tests (if any) and other under- policy. “These might change at premiums are paid on time exceed ₹6,000 in the first year.
a hit ever since the lockdown maturity amount will be tax- writing processes. PAC varies a pre-defined rate or remain and the policy is still in force. Depending on the insurer
was announced in March . free,” said Shweta Jain, CEO from company to company. constant throughout the ten- Some companies may levy and the product, you may also
“The trend is moving and founder, Investography, a For instance, for a popular ure. The deduction is done by charges on partial withdrawal. have to bear a few other char-
towards pre-covid-19 times, financial planning firm. Ulip, PAC is 8% in the first cancelling the units propor- Discontinuance of pre- ges, especially if you opt for
wherein the product mix was If you do plan to invest in year, 5.5% in the next two tionately from the selected mium charge: Ulips have a riders. “Considering these
spread between Ulips, non- Ulips, here are some charges years, 3.5% in the next five the fund value. “Though the are drawn before calculating funds,” said Rakesh Goyal, five-year lock-in and this charges, your actual return
participating and participating you must know about. years and 3% thereafter. charges can differ, 1.35% is the the net asset value of the fund. director, Probus Insurance, an charge applies if you discon- from a policy can be lower
products,” said Rushabh Gan- Premium allocation Fund management maximum charge per annum, Mortality charge: This is insurtech broking company. tinue in the first four years. than the fund performance,”
dhi, deputy CEO, IndiaFirst charge (PAC): This is a fixed charge (FMC): This goes according to Irdai guidelines,” the cost of providing the life Switching and partial There is no such charge from said Melvin Joseph, founder,
Life Insurance Co. Ltd. percentage of the premium towards managing the fund said Naval Goel, founder and cover. The insurer takes your withdrawal charges: You the fifth year. You will get the Finvin Financial Planners. So
Financial planners don’t before the money is invested. and is levied as a percentage of CEO, PolicyX. These charges age and health conditions into can switch between different money only after five years always factor in the charges.

MUMBAI 11
Delhi assembly
Dream11 is ready for next Liquidity drives rally
readies notice
to Facebook as stock markets surge
FROM PAGE 1
against harmful content.

level with IPL winning bid 50% from March lows
The committee for peace
and harmony, taking note of Nasrin Sultana
the complaints, is likely to meet nasrin.s@livemint.com
this week to discuss which The sponsorship will help the startup’s ambitions to expand beyond fantasy sports MUMBAI
Facebook officials it should
I
send out notices to. ndia’s stock markets have
“We are finalizing details of Abhijit Ahaskar & Prasid Banerjee rallied 50% from the lows
who the notices will be sent out NEW DELHI touched in March, driven by
to. Yesterday the committee a surge in liquidity from for-
F
took cognizance of the com- antasy sports platform eign investors. The surge has
plaints and is now finalizing Dream11’s winning bid for taken place despite the econ-
how the proceedings will take the title sponsorship of the Putin tells omy struggling to cope with
Merkel
place. We will send out notices Indian Premier League external
disruptions caused by the cov-
shortly to concerned officials,” (IPL) signifies the startup’s interventio id-19 pandemic.
a person aware of the develop- growing ambition and growth n in Belarus The country’s benchmark On Tuesday, BSE Sensex
ments, who did not want to be plans that could see it enter newer would be indices ended at a five-and- closed at 38,528.32, up 1.26%.HT
unacceptabl
named said. business segments. e
half month high on Tuesday
The social media platform Founded in 2008 by Harsh Jain with the BSE Sensex closing at eign institutional investors
bit.ly/3kY0AN
has faced a storm of criticism (CEO) and Bhavit Sheth (COO), B
38,528.32, up 477.54 points or have pumped in $8.39 billion
over allegations that it over- Mumbai-based Dream11 has over 1.26%. after a massive sell-off of $7.8
looked posts put up by ruling 80 million users and is the first The Nifty closed at billion in March in Indian
Bharatiya Janata Party (BJP) gaming startup from India to reach 11,385.35, up 138.25 points or shares. Indian markets are,
leaders in order to protect its the unicorn status, an industry 1.23%. however, still 8% away from
interests in its largest market. term for startups valued above $1 The Sensex and Nifty have the record highs of January.
According to a report by The billion. Jain is the son of Anand surged 50.27% and 51.58% “Global equities, including
Wall Street Journal, Ankhi Das, Jain, a close aide of Reliance Indus- respectively from their March India, continued to move
Facebook India’s director for tries chairman Mukesh Ambani. lows, making India one of the higher on hopes of sooner-
public policy, had opposed An avid supporter of Manchester best performers globally dur- than-expected availability of
moves to act against BJP lead- United, Mumbai Indians, and the ing the period. the coronavirus vaccine, as
ers who had put up posts that Indian cricket team, Jain com- According to experts, 60-70% of Dream11’s overall revenues are concentrated around the IPL tournament. HT In dollar terms, the Sensex well as better-than-feared cor-
allegedly violate the company’s pleted his engineering from the has gained 51.57% and Nifty porate earnings. The Nifty
hate-speech rules. University of Pennsylvania and The IPL deal will help Dream11 mium sports leagues is not new to and the first hockey league was 52.91%. Markets Index gained
“Summons are set to be sent MBA from Columbia Business with its plans to expand its business Dream11. In fact, the startup has launched in the same year. in China, the US, Policy easing by more than 4.6% in
for appearance to the con- School. Sheth got his MBA in cor- beyond fantasy sports on the back built India’s biggest fantasy sports In 2019, it added the first fantasy Japan, and Hong global central the past four
cerned officials of Facebook in porate finance from Bentley Uni- of the huge and highly engaged platform on the back of strong tie- league on IPL and followed it with Kong have rallied banks has led to weeks and out-
due course to ensure their pres- versity and engineering from DJ user base that the startup has built, ups with leading sports leagues. a fantasy volleyball league. 32.89%, 49.77%, an overflow of performed its key
ence before the committee for Sanghvi College of Engineering. a person aware of the matter said. In 2018, Dream 11 announced tie- According to the founder of a 43.9% and 17%
foreign funds into regional peers
participating in the proceed- “Dream11 is a successful brand “They have built a huge user ups with the International Cricket mobile gaming platform, 60-70% respectively from with MSCI Asia,
ings, and the committee shall and their association with the IPL base. Now, they have major plans to Council, Pro Kabaddi League, of Dream11’s overall revenues are their March lows. emerging markets excluding Japan,
convene its meeting this week franchise has helped them concentrated around the Policy easing such as India gaining over
to initiate the proceedings in the past. Now, they want CREATING RIPPLES IPL. The fact that Dream11 by global central 2.3%,” said Credit
forthwith,” Raghav Chadha, to take it to the next level by is paying a huge sum to gain banks to mitigate Suisse Wealth
chairman of the committee, moving up from being a DREAM11 has over THE startup has IN 2018, Dream 11 had THEN in 2019, it these rights may not be a the health crisis has led to an Management India in a note
said on Monday. secondary brand to being 80 million users and
is the first gaming
built the biggest tied up with the ICC,
fantasy sports space Pro Kabaddi League,
added the first
fantasy league on IPL
surprise to many either. overflow of foreign funds into on Tuesday.
“The committee will facili- right in the face of the audi- startup from India to due to tie-ups with International Hockey and followed it with A 9 July report by FIFA emerging markets such as The BSE Midcap and BSE
tate the state’s endeavour to ence,” said Ashutosh reach unicorn status major sports leagues Federation, etc fantasy volleyball and KPMG said the Indian India. small-cap indices saw a better
maintain and promote an irenic Sharma, vice-president, online fantasy sports indus- The G4 central banks are performance. From the March
atmosphere and a conducive research director, For- try’s gross revenues crossed expanding their balance lows, BSE Midcap gained
milieu of peace and pacification rester. “Though many people who expand to other allied sports seg- International Hockey Federation ₹2,400 crore in FY2020, more sheets by 28% of gross domes- 50.92% while BSE Smallcap
among different communities watched the IPL were aware of ments including areas such as off- and Big Bash League, offering fan- than three times the ₹920 crore it tic product (GDP) by end-2021 surged 59.52%.
in Delhi. It is our aim to take Dream11 to some extent, now they line sports events and sports mer- tasy leagues on their flagship tour- had earned in FY2019. and the G4 and China econo- Sectorally, healthcare, auto,
action against any potential may want to engage with it to see chandise,” the person cited above naments. Former Indian cricket Dream11 didn’t respond to a mies are extending fiscal sup- IT, and metal indices have led
adversity which might cause how the virtual game works, along said on condition of anonymity. team captain M.S. Dhoni was request for comment on this story. port of 17% of GDP in 2020. the rally with gains of 47-59%
communal discord,” he added. with the real one,” he added. To be sure, tie-ups with pre- signed as the brand ambassador abhijit.a@livemint.com In the last five months, for- from March lows.
Bombay HC bar on Gaming firm is the winner of cricket’s biggest title deal
Emami brand plan FROM PAGE 1 Cricket in India (BCCI) had moment,” he noted. the Indian online gaming
previously said the choice of The brand value of IPL space is getting cluttered,
FROM PAGE 1 mark; and so far as the defen- Amid anti-China senti- the sponsor will not be based stood at $6.8 billion in 2019, up Dream11 will certainly have an
dant (Emami) is concerned, it is ments following the Ladakh solely on the highest bid, but 7% from 2018, according to edge over other players
rename its popular fairness admittedly at the stage of border clash where 20 Indian Dream11 did place the highest consulting firm Duff and through IPL,” he added.
cream “Fair & Lovely” to “Glow adopting “a process of launch- soldiers died, the Board of bid. Phelps. Founded in 2008 by Harsh
& Lovely” for women and “Glow ing” its goods under the trade- Control for Cricket in India The firm outbid Unacademy According to Tuhin Mishra, Jain and Bhavit Sheth,
& Handsome” for men, Emami, mark “Glow & Handsome”, (BCCI) and Vivo agreed to and Byju’s, which were also in managing director of Baseline Dream11 is a brand owned by
which already sells the “Fair & Justice S.C. Gupte said in an pause the sponsorship for this the race for the sponsorship. Ventures, a sports manage- sports technology firm Dream
Handsome” cream for men order passed on Monday. year. Vivo had agreed to pay Considered one of the leading ment firm, this win gives Sports. Cricketer M.S. Dhoni is
decided to challenge the move, “Whilst the parties may be ₹440 crore per year for the contenders, Tata Sons pulled Dream11 the ownership posi- the brand ambassador for
claiming it was in the process of given some time to complete five-year deal. Interestingly, out at the last moment and did tion of the league. It is Dream 11, a unicorn backed by
launching “Emami Glow & their respective pleadings, it Dream11, which replaces Vivo, not place the bid. expected that IPL viewership Steadview Capital and Kalaari
Handsome”. would be in the interest of jus- itself is backed by Tencent On 14 August, BCCI had BCCI had said the choice of the sponsor will not be based solely will be high this year, which Capital, among others.
The court, however, tice to then take up the matter Holdings of China. received expressions of inter- on the highest bid, but Dream11 did top the tables. MINT will also translate into higher The Dream11 mobile app is
acknowledged that HUL was a on an expeditious basis for the “Dream11 has quoted ₹222 est (EoI) from six companies— engagement on the Dream11 on Apple’s App Store but not
prior adopter of the “Glow & hearing of the interim applica- crore as bid. They have been Dream11, Tata Sons, Patanjali tember. dom care about it. platform. on Google’s Play Store as the
Handsome” brand name. tion. Till that happens, the supporting cricket and other Ayurved, Reliance Jio, Byju’s Harish Bijoor, brand strat- “Fantasy cricket itself is a “IPL is a global property and latter bars cash contests on its
“So far as this court is con- defendant, who has not yet sports in the country. The firm and Unacademy—for IPL egy specialist and founder, big play in India. Therefore, Dream11 has global ambitions; platform.
cerned, it is sufficient to note at brought its own goods into the has been associated with IPL sponsorship. If the tourna- Harish Bijoor Consults Inc., IPL 2020 is a big win for so, this is a huge opportunity So, Android users have to
this early prima facie stage that market under its proposed as an associate sponsor for two ment is delayed or postponed noted that there is a little bit of Dream11. The company will for the online gaming platform download the app from the
the plaintiff (HUL) is a prior trademark “Glow & Hand- years and will now represent due to any reason, Dream11 China and Chinese money in a draw a lot more out of this title to leverage as this edition of company’s website. A dis-
adopter and user of the mark some”, deserves to be restrained the league as the title sponsor,” will still remain the sponsor till whole host of businesses in sponsorship deal. For IPL, this IPL is much awaited by view- claimer on the Android phone,
“Glow & Handsome”; it has from doing so,” the order said. said Brijesh Patel, chairman of 2020 end. The 13th edition of India, but since most invest- deal shall represent the best ers and other stakeholders. It however, warns them that it
already launched its goods in The matter is posted for fur- the IPL governing council. IPL will be held in the United ments are back-end owner- money it could harvest out of makes their association with could be unsafe to download
the market with that trade- ther hearing after two weeks. The Board of Control for Arab Emirates from 19 Sep- ship leverages, consumers sel- the bids in a fire-sale India cricket even stronger. As the app.
India may privatize more of its airports Tharoor move to call meeting is partisan: BJP
FROM PAGE 1 domestic air travel would FROM PAGE 1 Tuesday morning. mentary committee probe. Sen-
reach 50-55% of pre-covid- “If at any time any question ior leaders of the party K.C. Ven-
Modi’s government plans to level, and return to pre-covid Shashi Tharoor’s move to sum- arises whether the evidence of a ugopal have written to Facebook
privatize 30-35 airports over levels by the end of the year. mon a parliamentary panel person or the production of a doc- CEO Mark Zuckerberg calling
the next five years. India lifted on 25 June a meeting over allegations that ument is relevant for the purpose for a timebound “high-level
In the second round of two-month suspension on all Facebook deliberately ignored of the Committee, the question is enquiry” into the leadership and
airport auctions, state-run flights by allowing domestic hate speech by BJP leaders, referred to the Speaker whose operation of its India team.
airport operator Airports flights in a staggered manner. terming it a partisan move. The decision is final,” he added. Hitting back, law minister
Authority of India has cho- Only limited international Congress, however, accused The Wall Street Journal in a Ravi Shankar Prasad told report-
sen the airports at Varanasi, flights under bilateral arrange- the BJP of “running shy” of par- front-page report this weekend ers on Tuesday, “If the platform
Bhubaneshwar, Amritsar, ment are allowed now besides liamentary scrutiny. said Facebook had decided not in question is a public platform
Indore, Raipur and Trichi, cargo flights. Tharoor, who chairs the com- Cong’s Shashi Tharoor chairs to ban BJP leader T. Raja then it is the right of every Indian
Mint reported on 21 May. Domestic airlines are mittee on information technol- the parliamentary panel on IT.HT Singh in spite of his allegedly to express themselves irrespec-
AAI operates most of the air- allowed to use only a third of ogy, said on Sunday that the extremist posts on the social tive of the ideology and commit-
ports in the country. It also their earlier-approved sum- panel would be taking up the san manner. They said they media platform. ment. People whose political
owns stakes in privately run mer schedule. issue and could summon offi- would approach Rajya Sabha A Facebook spokesman, space has shrunk now want to
airports such as the ones in Addressing the CII webi- cials from the social networking chairman M. Venkaiah Naidu Andy Stone, acknowledged to dominate these platforms. This
Delhi, Mumbai, Hyderabad Privatization is aimed at making airports more efficient and also nar on fostering steel usage in platform. Congress spokesper- and Lok Sabha Speaker Om Birla WSJ that Ankhi Das, Face- is not right. As far as hate speech
and Bengaluru. increase revenues for the exchequer MINT housing, construction and son Pawan Khera on Tuesday if Tharoor failed to discharge his book’s top public-policy execu- is concerned then (former Con-
“Everybody should put their aviation sectors, Puri said justified Tharoor’s decision. duties in a bipartisan manner. tive in India had raised congress president) Rahul Gandhi
heads together to ensure we making airports more effi- ders in the next auction. housing and civil aviation “What Shashi Tharoor has done “Shri Tharoor should realise cerns about the political fallout had said people will hit PM (Nar-
do this in the correct, cost-ef- cient and also increase reve- Puri said he hoped that air sectors were key customers is within the rights of the chair- the parliamentary standing that would result from desig- endra) Modi with sticks—is it not
fective and environmentally nues for the exchequer. The travel will continue to grow. “I of the steel industry and that man of the committee and there committee is an extension of nating Singh a dangerous indi- hate speech? Is he not instigating
friendly way,” Puri said. pandemic, which has dis- am extremely confident that it was incumbent upon the is nothing wrong in it, but these Parliament, not the Congress vidual, but said her opposition violence?”
In May, Modi had asked the rupted air travel and dealt a both the domestic civil avia- steel industry to ensure that people are so eager to save Face- party. According to the rules of wasn’t the sole factor in the People in the know said the
civil aviation ministry to accel- blow on the confidence of tion and international civil avi- user industries receive steel book that they are attacking the parliament, only the Speaker company’s decision and that panel could become a political
erate plans to privatize six travellers, however, is ation through bilateral air at comparable international opposition for it,” Khera added. can summon private persons,” Facebook is still considering battlefield in two meetings
more airports in the second expected to force the govern- bubbles will revive very soon,” prices while the government But senior BJP leaders who Nishikant Dubey, senior BJP whether a ban is warranted. slated for 1 and 2 September.
round of auction. ment to be more liberal with said Puri. extends a helping hand to the are members of the panel said leader and member of the IT The report prompted the Con- Pretika Khanna contributed
Privatization is aimed at the rules it sets for private bid- He expects that by Diwali, steel industry’s growth. Tharoor was behaving in a parti- committee wrote on Twitter on gress to demand a joint parlia- to the story.

MUMBAI VIEWS
OUR VIEW MY VIEW | ARTHANOMICS

HT
India’s bureaucratic ‘killer apps’

that businesses would like axed
The humble NOC and mighty PIL are among the ‘apps’ that can constrain the ease of doing business
this document meant getting NOCs processes were used to allot telecom
from 13 other agencies, including the spectrum or coal mines, our courts are
local public works department, power unlikely to hold the government
distribution company, irrigation and responsible for the mess. The alleged
health departments, forest department, beneficiaries of wayward decisions have
pollution control board, etc. The to pay the price, as licences get can-
request for an NOC from one agency celled wholesale and investments worth
often led to the need for a couple of hundreds of crore are reduced to cin-
more NOCs from yet other agencies. der. Pollution in the city? The Supreme
R. JAGANNATHAN This story, however, had a happy Court can mandate that no sport-utility
is editorial director, ‘Swarajya’ magazine ending. The blogpost was removed after vehicles will be registered in Delhi and
it was discovered that the NOCs were even impose an extra tax on new regis-
supposed to be obtained by the revenue trations—something that is exceedingly
department itself, and some lower-level odd, since the Constitution does not
staffer forgot to add this entrepreneur’s grant the judiciary taxation powers.
Matters of justice that

needs to its to-do list and sent him scur- And if there is a dispute over the term
D
uring the years of the Narendra rying from one government office to “adjusted gross revenues” in telecom,
Modi government, India has another. This was the state of affairs in the courts will not only stop at an inter-
moved dramatically up the Maharashtra, the country’s top business pretation of the term, but even decide
World Bank’s rankings on ease of doing destination. One wonders what the how and when these dues are to be paid,
need clear enunciation business, from No. 142 at the end of the
United Progressive Alliance regime to
No. 63 last year. Last week, the central
government announced a taxpayers’
situation is like in states that are not so
“business-friendly”.
However, the NOC isn’t the only busi-
ness killer app around. We must add
and look into issues like whether com-
panies already in insolvency courts can
sell available “assets” such as spectrum.
Several judicial decisions seem to bear a
charter and other measures to make an several more, including the judicial PIL disposition that is inclined less towards
assessee’s interactions with the taxman (public interest litigation), the “show business logic, and more towards causes
The Supreme Court is expected to take up some of the broad issues thrown up by Prashant “seamless, painless and faceless”. cause notice”, which is used with lethal like protecting government revenues or
All these, no doubt, constitute effect in the public sector to kill all initi- enforcing some standard of probity in
Bhushan’s contempt-of-court case. Above all, we need clarity on criticism of the judiciary “progress”, but why do we not hear ative by making employees worry about how public resources are handled. Last
whoops of joy in the business commu- whether even bona fide decisions will year, senior counsel Harish Salve
nity beyond the usual politically correct attract the Vigilance Commission’s alleged that court rulings were a large
statements from industry associations adverse attention, and tax demands. contributing factor in the current eco-
I
n the tide of judicial affairs, there comes that is unlikely to work in the sphere of dispute that things are improving? The answer It is the last problem that the Modi nomic slowdown, and there is some
a time when matters of law and justice resolution, unfortunately, given all the axes is that India continues to be a world government has tried to address with its truth to this assertion.
beater in terms of bureaucratic “killer taxpayers’ charter and “faceless” inter- The devil, they say, is in the details.
delivery call for deep deliberation. Such an that various parties have to grind. Still, the apps”, or rules and regulations that trip actions with the revenue department’s India does not always need big ticket
occasion may be upon us now, thanks to a judiciary could devise a way to filter out the business-folk at every step. And often eager enforcers. Then, there are affida- reforms or bold vision statements to
run-in with the legal system by Prashant noise and address grievances that are plausibly unobtrusively. vits and declarations to be made to the speed up growth. It needs these micro-
Bhushan, an eminent lawyer held guilty of real. Likewise, the issue of cases under trial A blog written by an entrepreneur, effect that if anything goes wrong, the reforms that often escape notice, for
titled, I tried starting a manufacturing state will not be held responsible. You they seem logical in the regulatory
contempt on Friday by the Supreme Court for being discussed in public would call for a unit in India…, reads like a horror story must take on this liability through a self- scheme of things. A staffing services
a couple of tweets. On Monday, at a hearing on nuanced response. Unlike the US, where trials that could deter almost anyone from declaration. firm, TeamLease, released a report in
similar charges against him in an earlier case, can turn into televised spectacles, India keeps trying to set up shop in India. The piece PILs deserve a special mention as July pointing out that companies have
a bench of the apex court raised two big ques- court affairs out of the public glare, and wisely is about the (re)discovery of the biggest business disablers, for they can be initi- to grapple with over 1,500 laws, 69,000
tions of Indian jurisprudence that it said so. Despite this, an incessant blather on TV business killer app of them all: the hum- ated by almost anybody on almost any compliances, and 7,000 filings at vari-
ble NOC, or no-objection certificate. claimed grounds of “public interest”. ous levels of government. While these
should be settled now for the sake of future channels in the guise of debates often threat- One would think that no one ought to Worried about drunken driving? File a laws may not apply in all states and to all
cases. One, “In case you have a grievance ens to prejudice popular perceptions before have any objection to someone starting PIL, and you can look forward to a court firms, the sheer numbers tell you what
against a judge, what should be the process? courts get to rule one way or another. This has a business and creating jobs, but no. verdict saying no bars can be set up any- the ground reality is. We have to take an
In what circumstances can such allegations the same effect as casual aspersions cast on the Apparently, you need a non-agricul- where near a highway, damaging busi- axe to such business killer apps before
be made?” And two, “When some matter is judiciary. Taken to extremes, it could even tural certificate to make products in a nesses that never knew things would we can claim genuine improvement in
rural area. For the blog’s author, getting end up thus. If you find non-transparent the ease of doing business.
subjudice, to what extent can the matter be lend itself to mass approval of mob justice. This
argued through media and another mode?” It danger, though, could also act as a criterion for
is for the judiciary to offer clarity, of course, what ought to be permissible and what not. A
and a larger bench is soon expected to take up sober analysis that is devoid of rhetoric and
these issues. Yet, while the interpretation of polemics, for example, is unlikely to pose any
legal provisions is one thing, whether we need risk on that count, and should be fine.
revisions done is another. Laws that can be Overall, we could do with far greater clarity www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Chandigarh*, Pune* Thursday, August 19, 2010 Vol.4 No.197 `3.00 32 PAGES
considered eternally valid are rare, some on what is deemed harmful to the cause of WSJ: Slow Pakistan response
to flood hurts Zardari >27
PRIVATE EQUITY: Blackstone to invest
$300 million in Moser Baer Projects >3
would say non-existent, and it is sometimes justice and what is not. In an era suffused with EXCLUSIVE PARTNER
INFOTECH: US to address India’s concerns
on visa fee increase >4
POWER: NTPC severs ties with Games,
seeks audit of sponsorship fees >4
worthwhile to re-examine them in the light of online opinions, for instance, what criticism
SENSEX 18,257.12 Æ 208.27
Sebi may
double retail
NIFTY 5,479.15 Æ 65
REGULATORY HURDLES
Cairn deal
DOLLAR `46.56 æ `0.09 EURO `59.76 æ `0.18 GOLD `18,615 æ `55
MADHU KAPPARATH/MINT
OIL $75.59 æ $1.88
QUICK EDIT
The silly
Law and justice are
limit in public season
shifting contexts. can be directed at the justice system or judges share offers
B Y N . S UNDARESHA
S UBRAMANIAN &
A NIRUDH L ASKAR
·························
faces fresh
T hese are the facts.
Virender Sehwag was
on 99 when India needed
one run to win off the last
ball. Suraj Randiv delivered
a no ball, which Sehwag
struck for six. That gave
not always the same.
In a classic justice system, the dignity of without falling afoul of our contempt law? questions
MUMBAI
India victory against
C apital market regulator

Securities and Exchange
Sri Lanka while denying
the batsman a century.
When they aren’t,

Board of India (Sebi) may dou- The Indian media, which
ble the investment limit for re- has a finely honed talent
tail investors in public issues. for taking umbrage at
In a discussion paper put up Govt, tax authorities MORE CONCERNS Temporary relief: A file photo of Satyam founder B.Ramalinga Raju. anything that bears close
on Wednesday, Sebi proposed
to allow retail individual bid-
maintain that a clear THE NEWS BAILED OUT
resemblance to a slight,
has worked itself into
courts needs to be assured and the reputation Bhushan is to be punished for a tweet that
ders to bid up to `2 lakh in ev- view will emerge only Before Vedanta Resources can close a lather, raining fire,
ery public float, from the cur-
rent limit of `1 lakh. It has in-
vited comments from the pub-
after Vedanta seeks
approval for takeover
the $9.6 billion acquisition, regulatory
issues and open offer price concerns
will have to be addressed.
THE BACKGROUND
Satyam case weakens brimstone and spittle on
Kumar Sangakkara’s team.
The rank perfidy of the
lic on this proposal till 3
with Raju’s release Sri Lankan 11 has been
destroying the law

September. B Y U TPAL B HASKAR, Under India’s takeover norms, any discussed at length on
Investment bankers said the S ANJIV S HANKARAN & acquirer buying at least a 15% stake in television, with anyone
a firm is required to make an open
trigger for the move could be A NIRUDH L ASKAR offer for an additional 20%, but no remotely involved in
the proposed initial public of- ························· B Y P RIYANKA P ULLA & crore. the issue offering their
of judges shielded so that their rulings are alluded to the chief justice of India’s social life
NEW DELHI/MUMBAI
shareholder is obliged to sell shares.
fering (IPO) planned by state- C .R . S UKUMAR Raju’s release is a setback valuable insights. Woe
F
owned miner Coal India Ltd resh regulatory issues THE IMPLICATION ························· for India’s federal investiga- betide anyone suggesting
(CIL). According to some esti- raised by the petroleum The petroleum ministry is concerned HYDERABAD ting agency, the Central Bu- that perhaps there’s no
that by acquiring Cairn’s assets in
mates, the float could raise up
to `17,700 crore.
If this is the target, around
ministry as well as con-
cerns about the open offer
price expressed by an institu-
India, Vedanta will also get access to
the exploration blocks already
awarded to the company under
C hances of a speedy resolu-
tion to l’affaire Satyam re-
ceded on Wednesday with the
reau of Investigation (CBI),
which is yet to produce him in
court in person. Arrested on 9
need to declare war over
Sehwag being unable to get
another one-day hundred,
`6,195 crore of CIL shares will tional investor in Cairn India India’s Nelp bidding rounds. Andhra Pradesh high court January 2009, Raju has been that this is after all just
may be the first step

be available for subscription Ltd, will have to be addressed granting bail to the company’s undergoing treatment for Hep- a game. The poor Sri
by the public as 35% of any before Anil Agarwal-promoted founder and former chairman, atitis C at Nizam’s Institute of Lankans, meanwhile, have
honoured and not defied. This holds especially and links, and another that sought to blame
such issue is reserved for retail Vedanta Resources Plc’s can saying minority shareholders B. Ramalinga Raju, freeing, al- Medical Sciences, Hyderabad. been left wondering what
individual bidders. This will close out the $9.6 billion have been treated unfairly. beit temporarily, the last of the hit them. But don’t worry.
also require a minimum of (`44,736 crore) acquisition. The public holds 37.64% of accused in a corporate fraud TURN TO PAGE 2® They have intelligently
620,000 applications, assum- Separately, tax authorities, Cairn India. Analysts have esti- that came to light in early 2009 taken a leaf from the
ing that each investor applies who held a meeting with Cairn mated that the public share- with Raju’s confession and ALSO SEE Indian playbook…and
for the maximum amount. India, did not rule out raising a holders could have got around whose magnitude has since ordered an inquiry.
The follow-on public offers tax demand on the deal. `3,570 crore more had the doubled to a claimed `14,000 >OurView: Raju a free bird once again >P30
(FPOs) of NTPC Ltd, which Both the government and non-compete premium been
raised `8,478 crore, and the tax authorities maintained extended to them as well.
true in India, where the writ of courts has to be four past chief justices of India for an allegedly toward changing it.
NMDC Ltd, which raised that a clear view would emerge Meanwhile, the petroleum
`9,970 crore, saw less than 20% only after the proposal is sub- ministry is concerned that by DEADLOCK REMAINS
of the retail portion being submitted for approval. acquiring Cairn’s assets in In-
INSIDE
scribed.
However, SJVN Ltd, which
raised `1,079 crore through an
Life Insurance Corp. of India
(LIC), which holds a 2.57%
stake in Cairn India, may not
dia, Vedanta will also get ac-
cess to the exploration blocks
already awarded to the compa-
GST deadline
IPO in May, saw a retail sub-
scription of over three times.
The Sebi paper has termed
tender its shares in the open
offer made by Vedanta, which
has proposed to acquire a
ny under India’s new explora-
tion and licensing policy
(Nelp) bidding rounds. The derailed by states
enforced all too often. But we have long lacked weakened democracy. Similar and sharper
garnering retail subscription a stake of up to 60% in the com- ministry is concerned that the
“daunting task”. “For an issue pany. Vedanta will pay `405 acquisition would enable Ve- B Y L IZ M ATHEW & Centre, and said they would
size of `4,000 crore to `6,000 per share—including a non- danta, which is making its de- S ANJIV S HANKARAN need more time to respond to
crore, the limit of `100,000 compete fee of `50 per but in the oil business, to get ························· the draft sent late last week. In
would mean that the issue has share—to Cairn Energy Plc to around the criterion of proven NEW DELHI addition, they said the Cen-
to receive a minimum of
150,000 to 200,000 applications
from retail individual investors
buy up to 40% of Cairn India,
but the open offer price for an
additional 20% has been fixed
experience in exploration.
“This is a point that stands
ground. The focus of Nelp
T he introduction of a good
and services tax (GST) is
likely to miss the deadline of
tre’s draft, despite compromis-
es, was not acceptable to them
as it undermined the states’
to fill in the 35% allocation. at `355. rounds has been exploration April 2011 after the Centre and fiscal autonomy.
an open mechanism by which complaints comments are routinely aired on social media.
This could be a daunting task “It is not fair to discriminate and production. All these is- states failed to break the dead- “We do not support the con-
considering that in case of well (between) shareholders. All sues need to be examined in lock over their differences on stitutional amendment in its
oversubscribed issues, the shareholders should be able to detail when the government the tax architecture. present form and scope as pro-
G LOR I A STE I N E M
number of applications re- sell their holdings at an equal gets the proposal,” said a se- As a result, the requisite leg- posed in the revised draft,” ac-
ceived from retail individual price,” said a senior LIC offi- nior official of the petroleum islation cannot be introduced cording to the text of the
investors was in the range of
35,000 to 70,000,” it said.
cial. “If we are not given the of-
fer to sell at `405 a share, we
ministry, who did not want to
be identified. Tata Motors may in the ongoing monsoon ses-
sion. The parliamentary proce-
speech by B.S. Yeddyurappa,
Karnataka’s chief minister.
TURN TO PAGE 2®
may hold on to our existing
shareholding and look at the
Nelp auctions started in Jan-
uary 1999 to boost oil and gas
drive into Mexico dure made it imperative to do
so to meet the deadline.
Addressing states’ repre-
sentatives on GST, Union fi-
could be made against judges. Impeachment This makes our contempt law seem much too A
upside of the stock,” said the exploration and reduce India’s fter successfully steer- The Bharatiya Janata Party nance minister Pranab
official, who declined to be dependence on hydrocarbon ing its UK subsidiary (BJP), the principal opposition Mukherjee said: “The wisdom
named because of the sensitive imports. The government allo- Jaguar Land Rover out of party, refused to budge from lies in moving ahead with the
nature of the issue. With a cates rights to explore blocks crisis, Tata Motors Ltd is its stand even after the Centre constitutional amendment
stake of 14.94%, Petronas In- through auctions under the now focusing on creating relented on its position and without any further delay as a
ternational Corp. Ltd is largest programme based on a bid- a local presence in key thereby ruled out attempts to preparatory step for the intro-
institutional shareholder in der’s technical and financial emerging markets world- forge a consensus. duction of GST.” Mukherjee
Cairn. It could not be ascer- expertise. For deepwater wide. The country’s largest Constitutional amendments assured the states one more
tained whether Petronas will blocks, technical capability and auto maker is likely to set “will not be introduced in the draft would be prepared to ad-
is a long-winded parliamentary process that harsh for the times we live in. It needs to be
participate in the open offer. experience has more weightage up a `1,200 crore factory monsoon session because of dress concerns expressed on
Under India’s current takeo- during bid evaluation. in Mexico this year in a the political decision taken by Wednesday.
ver norms, any acquirer buy- The government has already bid to sell its vehicles in the BJP”, said Thomas Isaac, According to West Bengal
ing at least a 15% stake in a indicated that the deal will re- South America. The plant Kerala’s finance minister. “In chief minister Asim Dasgupta,
firm is required to make an quire its go-ahead and Oil and will churn out 100,000 cars that case, it will not be possible who heads the states’ body dis-
open offer for an additional Natural Gas Corp. Ltd (ONGC) a year, assembling models technically to meet the dead- cussing GST, there is a differ-
20%, but no shareholder is said it would have to study the such as the Nano, Indica line of 1 April 2011.” ence of opinion among states
obliged to sell shares. so-called right of refusal it has Vista and Indigo Manza to On Wednesday, states ad- on the latest draft of constitu-
Analysts have criticized the be sold in Mexico, Brazil ministered by the BJP took a tional amendments. Some of
can only be invoked for gross misconduct. A either excised or eased. Either way, we need
Vedanta-Cairn transaction, TURN TO BACK PAGE ® and Argentina, among tough stand against the consti- the states have asked for an-
other countries. >P3 tutional amendment to intro-
Mint is also available for R5.50 with Hindustan Times under a combo offer duce GST proposed by the TURN TO BACK PAGE ®
window for whistle-blowers is an idea, but one the rules spelt out clearly.
MY VIEW | EX MACHINA
The internet could regain the openness envisioned for it

with the internet. As a result, each of these shapes and sizes an opportunity to leverage another Beckn-enabled business, which, build open and interoperable commercial
RAHUL MATTHAN platforms has become a valve through the true promise of the internet without just like yours, would have designed its modules that could be combined to create a
which information on the internet flows, being beholden to dominant platforms. offerings to be available in this modular and platform for everyone to benefit from and
allowing them to derive an unprecedented At its core, Beckn is a set of protocols that interoperable fashion. contribute to. It promises to take any exist-
level of understanding about the things that offer a range of commercial functionality Beckn achieves this sort of interoperabil- ing commercial service offering and make it
affect us. and sector-specific applications that can be ity by unbundling the packet transmission digitally accessible. At scale, it will allow any
W
hen Tim Berners-Lee invented In a post back in 2018, Tim Berners-Lee used by a wide variety of commercial enter- layer from the experience layer, so that the location-aware commercial operation—
the World Wide Web, the inter- bemoaned what his invention had become. prises to carry out business core elements of commer- from fleet operators to last-mile delivery ser-
net was just a network of comput- “[F]or all the good we’ve achieved,” he said, activities. Think of it as a cial transactions—discov- vices, from large department stores to your
ers housed in universities and other aca- “the web has evolved into an engine of ineq- box of Lego bricks that can Adoption of the ery, order booking, pay- neighbourhood grocers—to leverage the
demic institutions. Many have said that his uity and division; swayed by powerful forces be assembled into different ment, delivery and fulfill- power of the open internet for outcomes
idea of building connections using a hyper- who use it for their own agendas.” His solu- configurations to suit the Beckn protocol ment—are processed in a that are advantageous to all involved.
text markup to connect different pages of tion was to build a new, user-centric alterna- needs of a specific com- standardized fashion. At Beckn is ambitious in scope. In order to
content gave us the web of information we tive to what the internet had become, one mercial enterprise. Cur-
stack could the same time, Beckn become the foundational e-commerce
is a partner at Trilegal and also

rely on so heavily today. While that may be
the case, the internet would never have
that he called Solid. Instead of giving internet
platforms control over our data, Solid allows
rently, a store owner can
only get such “Lego”
decentralize makes it possible for devel-
opers to customize the user
architecture that it aspires to, it will have to
convince existing businesses to make their
has a podcast by the name Ex
Machina. His Twitter handle is
grown to what it has had it not been for the
fact that he chose to build it as an open and
users to store their data in pods that they can
share as they see fit in a tightly permissioned
blocks from one, or at best
two, vendors. Beckn opens
e-commerce experience on top of that,
giving rise to a wide spec-
services interoperable with other Beckn
providers. Until it achieves critical mass,
@matthan decentralized system. way, so that they can control how this data is this market up dramati- and let new trum of modular processes many will hold back, preferring to take their
The internet today is far from decentral- subsequently used and by whom. cally, allowing one to get that can be combined in chances on their own or with more estab-
ized. Even though nothing much has As interesting as this is, it is possible to these blocks from a wide players thrive virtually infinite ways to lished digital commerce platforms than take
changed at the level of the underlying archi- solve the centralization problem by variety of vendors. serve various require- a risk on a new idea.
tecture, all our interactions on the internet approaching it from a different direction. If, for example, you are a ments, both at the cus- But if there is a country in which this idea
take place through a few giant platforms The recently released Beckn protocol stack local grocer looking to establish a digital tomer and the provider ends, all the while has a chance of taking root, it is India. We’ve
that give us access to content, allow us to aims to do just that. Rather than tackling the presence, Beckn can help you display your talking seamlessly to each other through the already demonstrated that we can build pop-
engage in commercial activities and social- issue from the ground up, Beckn is looking inventory online, find service providers to underlying transactional layer. ulation-scale platforms in various sectors.
ize with one another. The experience layer to offer an open and interoperable alterna- take and process your orders, and an entirely Beckn isn’t attempting to become another And while the world’s big platforms have a
that these platforms have built on top of the tive to the closed and self-contained plat- different set of service providers to deliver e-commerce platform. To the contrary, it is strong presence in the country, there are
open architecture of the web has, for most of forms that dominate e-commerce today. If them to your customer. Every service that looking to design the digital scaffolding on vast swathes of the population they have still
us, become the only way in which we engage successful, it will give businesses of all you string together like this forms yet which providers of goods and services can not been able to reach.
VIEWS WEDNESDAY, 19 AUGUST 2020

MUMBAI 13
MY VIEW | CAFE ECONOMICS M I N T C U R AT O R
Will our economic recovery be

led by better profits or wages?
The revival of India’s economy will call for some difficult decisions involving trade-offs that are best left to the political class
PRIYANKA PARASHAR/MINT
Dr Peter Scott-Morgan wants an exoskeleton to encase his upper-body. TWITTER
Meet Scott-Morgan, the world’s first ‘cyborg’
P eter Scott-Morgan stands, wide-eyed and tearful. “Good. Grief.” he says quietly.
“It’s quite extraordinary. It really is.” Using an exoskeleton, Dr Scott-Morgan
is experiencing what it is like to stand for the first time in months after being diag-
nosed with Motor Neurone Disease (MND) in 2017... The remarkable step, however,
NIRANJAN RAJADHYAKSHA is just the first in the 62 year old’s bold journey to control his disease by becoming
is a member of the academic board of the the world’s first, fully-fledged cyborg. “Think of it as a science experiment,” he
Meghnad Desai Academy of Economics laughs. “This is cyborg territory, and I intend to be a human guinea pig to see just
how far we can turn science fiction into reality.” Eventually, Dr Scott-Morgan wants
the exoskeleton to encase his upper-body, giving him superhuman strength and
the ability to tower above “flesh and blood” humans.
The Telegraph
H
ow is economic pain shared during Run around the planet and you can join this club
a crisis? Some recent data on the
Indian labour market can provide a
useful context.
Employment has normalized as
J esper Olsen was just two days into his inaugural attempt to run around the world
when he found himself on the verge of quitting... It was after this journey, upon
returning to his native Denmark, that Olsen co-founded the World Runners
restrictions on movement were Club; a curious coterie that remains arguably the most exclusive travel club in exis-
eased by the government. However, the recovery tence, and certainly the hardest to join. To be eligible to gain membership to the
has been uneven. Mahesh Vyas of the Centre for World Runners Club, you have to have completed a fully documented run around
Monitoring Indian Economy wrote in Business the Earth—but it’s not quite as straightforward as that. “You have to cross four conti-
Standard this week that informal jobs have nents from one major ocean to another; cover [at least] 26,232km in total; pass
returned, but formal jobs have not. He estimates through antipodal (opposite) points of the Earth; and start and finish at the same
that 17 million salaried jobs were lost in the quarter point. They’re the main rules,” explained Tom Denniss, who co-founded the club.
ended June. BBC
A persistent puzzle is whether or not workers in
the unorganized sectors have got back their old
jobs at the same wage rates as before. Meanwhile, Visit a public park in Tokyo for a loo with a view
early corporate results for the first three months of
the current financial year show that many large
companies have slashed employee costs during the
quarter. Companies in most sectors brought down
I t sounds like the worst kind of anxiety dream—a public toilet cubicle that appears
to offer the promise of blessed relief, but which on closer inspection turns out to
be entirely see-through. That, though, is the design feature behind several toilets
wage costs by either cutting salaries or letting peo- that recently opened in public parks in Tokyo. The “transparent” toilets, created
ple go. A broader picture of the share of wages in by the Pritzker prize-winning architect Shigeru Ban and more than a dozen other
gross value added will be available only when the leading designers, are made from coloured “smart glass” that turns opaque when
Annual Survey of Industries for this year is released. the cubicles are occupied. The conveniences opened this month in five locations
A lot of economic research has been done in in the capital’s Shibuya neighbourhood as part of the Tokyo Toilet Project, orga-
recent decades on how exogenous shocks, such as nised by the nonprofit Nippon Foundation…Using new technology, the foundation
the one we are facing right now, get amplified said the cubicles’ glass outer walls turn opaque after the door is locked.
through the economy. In a report released earlier The Guardian
this month on economic growth in times of covid,
J.P. Morgan economists Sajjid Chinoy and Toshi
Jain wrote about two key amplification channels. A cosmic gas cloud with a rhythmic ‘heartbeat’
A wave of corporate bankruptcies could hit bank
balance sheets, create unemployment and reduce
the economy’s productive capacity. The banks
themselves will likely become even more averse
The other traditional shock absorber is the
banking system, especially when banks act as an
arm of the country’s fiscal authority by supporting
mine domestic consumer spending at a time when
corporate investments as well as foreign demand
are weak. Lower corporate profits will eat into the
S cientists have found an unusual, mysterious “heartbeat” coming from a cosmic
gas cloud. The cloud—which is otherwise unremarkable—seems to be “beating”
along with the rhythm of a neighbouring black hole, researchers say. As such, they
to taking risks through lending. “The depth and growth through rapid credit creation. China is a ability of companies to deleverage. And negative appear to be connected to each other, the researchers write in a new journal paper.
duration of India’s slowdown will also hinge classic example. Banks can absorb an economic real interest rates sometimes result in households But it is not clear how the gamma-ray “heartbeat” of the cloud can be connected
crucially on whether the covid-19 shock amplifies shock in two ways—either by massive recapitaliza- moving their savings from financial assets to real to the black hole, which lies 100 light years away. The research team found the
through India’s financial and labour markets,” the tion at the end of the credit cycle, or by some form assets such as gold. heartbeat after looking through 10 years of data from Nasa’s Fermi gamma-ray
two economists wrote. of regulatory forbearance in terms of less stringent The adjustment process after a period of eco- space telescope. They were looking at a system known as S 433, about 15,000 light
This column asks a related question. As the accounting rules. The second, which the Indian nomic stress is always complex. The links between years away from us, which includes a giant star that is about 30 times the mass of
economy hobbles back to normal in the coming central bank has chosen for now, is the easier different parts of a recovering economy have to be our sun as well as a huge black hole.
quarters, who will help absorb the pain? The two though less sustainable policy option. carefully traced. However, the challenge is not The Independent
obvious shock absorbers are the government India entered the covid crisis with a weak fiscal purely an economic one, and has important politi-
budget and the banking system. The Indian gov- balance and a stressed banking system, and so cal-economy questions embedded within it.
ernment has kept much of its fiscal firepower dry these two may have limits on their ability to absorb A lot of the ongoing debate over India’s eco- Death Valley sizzles its way into record books
so far. A lot of the early intervention has been the covid shock. What are the other options? Here nomic policy is whether our recovery plan should
focused on credit guarantees rather than direct
spending, which is a good idea, given the need to
prevent capital destruction.
are three of them, though the list is not exhaustive.
First, labour acts as a primary shock absorber
through structurally lower wages. Second, compa-
be focused on the supply- or demand-side. An
equally important issue is whether it should be led
by profits or wages. Choosing between the two is a
C alifornia sizzled to a triple-digit temperature so hot that meteorologists need
to verify it as a planet-wide high mark. Death Valley recorded a scorching 130
degrees (54.4 degrees Celsius) Sunday, which if the sensors and other conditions
However, higher fiscal spending will be needed nies learn to live with lower profit margins. Third, complicated task. Higher real wages will lead to check out, would be the hottest Earth has been in more than 89 years and the third-
to support aggregate demand as the economy gets savers underwrite the gradual recovery through rapid growth in demand for industrial products, warmest ever measured. The temperature, measured at the aptly-named Furnace
back on track. As this column has argued earlier, negative real interest rates in a system based on but also put marginal enterprises under immense Creek during a blistering heat wave, would be the hottest temperature recorded
since risk aversion among households and firms financial repression. (A friend who I discussed this profit pressure. Lower real wages will have the on Earth in August, said Arizona State University professor Randy Cerveny, who
could lead to higher precautionary savings as well issue with also pointed out that a significant bur- opposite effect. A similar tough choice has to be coordinates the World Meteorological Organization’s extreme temperature team,
as demand for safe assets, such as government den may fall on the unorganized sector that is made in protecting the interests of either savers or which is already investigating the mark. That 130 is only below the disputed all-time
bonds, it is possible to support a higher fiscal defi- credit constrained.) borrowers when it comes to financial repression. record of 134 degrees (56.67 Celsius) at nearly the same spot in 1913.
cit for some time. There is also some space for extra Each option comes with a few significant risks. Ideally, these choices should be made by the AP
money creation by the Reserve Bank of India. For example, a sustained income shock will under- political system, rather than by economists.
THEIR VIEW
A tale of two surveys and the behaviour of respondents

78%, is reported to be at its highest ever. assumes a constant discount rate, people in that of a driver who looks at both the rear reference point, with the current crisis, has
TULSI JAYAKUMAR RBI’s set of five surveys (bit.ly/3g8tl6k), in reality do not value the present the same way and front mirrors while driving. Distant likely shifted to the preservation of life
contrast, suggests deep despondency. Con- they do both the future and the past. For objects will appear smaller in both cases. rather than livelihood (the economic sce-
sumer confidence, at 53.8 in July, was at its instance, most people would rather have a How do people view an economic situa- nario). In this sense, the government’s
lowest point. Households expect inflation to large piece of cake today, than wait for a year tion at a given point of time? Kahneman and attempt to save lives through lockdowns is
go up by at least 10 basis points both three to get a larger weight loss reward. The rea- Tversky’s work posits that events will be seen as a gain. Its “Jaan hai, jahaan hai” slo-
T
wo sets of surveys released recently months and one year ahead. The order son is that they see the future as distant and seen as gains or losses based on a reference gan may possibly explain why the MOTN
suggest a paradoxical situation that books, inventories and capacity utilization of value the present far more. point. What are the refer- survey’s results vary so much from RBI’s.
India faces. On one hand, there is the manufacturers suggest fewer orders, lower The principle of hyper- ence points of respondents Similarly, the UPA government’s han-
biannual Mood of the Nation Survey (MOTN), use of capacity, a stable finished goods bolic discounting suggests Insights of in those two surveys? It is dling of economic crises is seen in the distant
conducted by a private group to assess the inventory to sales ratio, and a higher raw that people prefer smaller apparent that they have dif- past. While this should make the current
nation’s mood on several fronts. On the material inventory to sales ratio, all of which rewards sooner over larger behavioural ferent reference points. economic slowdown appear larger, given
other hand, there is a set of Reserve Bank of point to depressed demand conditions in the ones later. They seek The MOTN respondent that it still isn’t over, the shift in reference
India (RBI) surveys involving consumers, future. The business assessment index had immediate gratification.
economics may seems to look at the present point due to covid may explain why the Modi
is professor of economics at SP
households, manufacturers and professional
forecasters, and their expectations of the
fallen sharply from 102.2 in the fourth quar-
ter of 2019-20 to 55.3 in the first quarter of
Similarly, people tend to
assess the subjective costs
explain high in relation to the past, while
the RBI survey respondent
government got better ratings in August
than in January’s MOTN survey.
Jain Institute of Management
and Research, Mumbai.
future. While the two sets have not always
been in tandem in the past, their divergence
2020-21. Finally, a panel of 32 professional
forecasters has predicted a contraction in all
of smaller losses incurred
in the near future as
approval of looks at the future in rela-
tion to the present. Both
The other real problem is that of the TINA
(There Is No Alternative) factor. If one were
appears stark in the current scenario. key macroeconomic variables, including higher, and those of larger the government discount the distant past to imagine a business with competition, the
The MOTN survey, with respondents real gross domestic product (GDP), con- losses to be incurred later and future far more. While reference point for its assessment would be
drawn from 19 states, including those worst sumption spending, investment and total as much lower. This gels amid such gloom RBI surveys capture the the appeal of other businesses. With no via-
hit by the covid pandemic, suggests that the gross value added by the economy’s three intuitively with a natural respondent’s views on ble national alternative in Indian politics
proportion of people critical of the govern- major sectors. tendency to delay negative “what is happening /likely today, respondents would compare the
ment’s handling of the situation, relative to Kahneman and Tversky’s seminal work consequences. to happen to me/the economy”, the MOTN incumbent government only with itself, and
that of the earlier United Progressive Alli- on behavioural economics provides a good While much of the work in behavioural survey appears more concerned with “who then assess each situation based on shifting
ance (UPA) government, has gone down starting point for the reconciliation of these discounting is related to the future, there is is responsible”. reference points. Rather than approach the
since January 2020. As many as 72% of its apparently contradictory survey results. work which suggests that discounting of the Our representative respondent looks at two surveys with scepticism, our political
respondents felt that the Narendra Modi Another relevant concept here is that of past follows a similar hyperbolic curve, with the state of our economy as particularly bad parties should ponder their role in contrib-
government has handled the economy well. behavioural hyperbolic discounting. the distant past appearing smaller than the today compared to the future, expecting the uting to this apparent paradox.
The approval rating of the Prime Minister, at As against traditional economics, which immediate past. The analogy we can draw is situation to improve later. The respondent’s These are the author’s personal views
MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 3 NO. 200 Rs 6.00
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‘One Nation, One Ration Card’ TWITTERVERSE
likely to miss Mar 2021 deadline Narendra Modi

@narendramodi
This is the season of
LIC sees 40% jump tropical and vector-
in premium income Some states such as Bengal, TN, Odisha are yet to back the Centre’s food subsidy scheme for migrants borne diseases. I urge
LIC clocked a sharp 40% you all to take the right
growth in premiums in precautions. The govt is
July and August, led by a Gyan Varma & Anuja offline and online access. Some of also closely monitoring
jump in sales of pension the key problems at this stage is that the situation.
NEW DELHI
plans. See Page 5
Aadhaar authentication is not com-
T
he National Democratic patible on some add-on devices and
Alliance (NDA) govern- that frequent changes are brought
Incorporation of Amarinder ment’s ambitious ‘One in concerning it. We already have
new firms jumps opposes
Nation, One Ration floated a tender for e-PoS devices
Sutlej-
Registration of new Yamuna Card’ programme to that will help in better implementa-
companies in India Link canal offer subsidized food products to tion,” a senior Chhattisgarh gov-
surged to the highest in project, migrant labourers and unorgan- ernment official said, requesting
more than seven years in warns
ized sector workers, is likely to miss anonymity. Michelle Obama
July. See Page 7 ‘Punjab will
burn’ its March 2021 deadline. “Our problem is also that there is @MichelleObama
bit.ly/2Q5LGq5
Under the scheme, public distri- a sizeable membership for the If we want to end the
bution system (PDS) beneficiaries ration-based state scheme. Our chaos and division—
will be able to draw ration from any foodgrain allocation, too, is more and keep alive the pos-
biometric verification-enabled fair than what is there under the sibility of progress on
price shop across states and Union National Food Security Act (NFSA). the issues we hold
territories covered by it. We demand that when our state dear—we’ve got to vote
The biggest hurdle to the Under the scheme, PDS beneficiaries can draw ration from any biometric verification-enabled fair price shop. MINT card holders go to other states, even for @JoeBiden and
scheme is the opposition from those covered under our state @KamalaHarris like our
some states, including West Ben- Union territories are part of the its inability to install and connect all not very effective. Chhattisgarh was scheme should get the same facili- lives depend on it.
gal, Tamil Nadu, Assam, Odisha, programme. The Union govern- fair price shops through electronic of the opinion that it already has a ties. We are ready to reimburse, but
and Chhattisgarh, which have ment has reached out to all states point of sale (e-POS) machines. robust PDS system that provides there should be a mechanism to
Joblessness rate raised concerns over the move and that are not part of the programme, Senior food ministry officials could food items to financially weaker implement this,” he said.
hits 9-week high have decided not to be part of the but senior officials of the Union not even tell the members of the sections. The Union government Senior food ministry officials
The unemployment rate Union government’s programme. ministry of consumer affairs, food labour committee how many fair will need to convince the state gov- told the parliamentary panel that
climbed from 8.67% in West Bengal chief minister and public distri- ernments to bring the beneficiaries must take the ini-
the week to 9 Aug to 9.1%
in the week to 16 Aug,
Mamata Banerjee said that subsi- bution have so far FACING HURDLES them on board,” tiative to register with FPS through
dized food items such as rice and not been able to said another sen- e-POS technology. “Under NFSA,
said CMIE. See Page 6
pulses will be available to migrant convince some of ONLY 24 state STATES want Centre ANOTHER issue it ior member of the there are at least 810 million benefi- Bernie Sanders
labourers and unorganized sector the state govern- governments and
Union territories are
to meet certain faces is govt’s inability labour committee.
demands before they to install and connect
ciaries. The ministry has under- @BernieSanders
labourers, even if they do not have ments,” said a sen- part of the take a call on joining all fair price shops via States said the taken an awareness programme We need an unprece-
Govt to ask e-com a ration card, till May 2021. ior member of the programme the initiative e-PoS machines central govern- and is also advertising in newspa-
cos to list GI goods dented response to the
The disclosure about the standing commitment must first pers to inform people to register crises we face—a move-
Govt is set to ask e-tailers progress of the Union govern- tee on labour, address their con- themselves with the nearest fair
to focus on listing and
ment, like never before,
ment’s scheme was made by senior requesting anonymity. price shops there are in India. cerns and meet certain demands price shops, but the entire exercise of people who are pre-
promoting geographical government officials during a Another problem that may delay “Odisha wants One Nation, One before they take a call on joining is not only time-taking, but also
indication (GI) products. pared to stand up and
See Page 3
meeting of the parliamentary com- the implementation of the pro- Ration Card to be a hybrid system the initiative. “We have a tablet- may not cover all beneficiaries,” a fight for democracy and
mittee on labour on Monday. gramme of the Bharatiya Janata so that it can also cover areas where based system that has been running senior member of the panel said. decency...
“Only 24 state governments and Party government at the Centre is the public distribution system is since 2015, which takes care of both gyan.v@livemint.com
Top court rejects plea Foreign secy Shringla visits Dhaka amid speculations of strain in ties
to transfer funds from Elizabeth Roche
elizabeth.r@livemint.com
a person familiar with the mat-
ter said. “It was an excellent
cussed, the person cited above agriculture, water resources,
added. Shringla is also set to investment, transportation
NEW DELHI meeting,” the person cited meet Bangladesh’s foreign infrastructure and connectiv-
PM CARES to NDRF above said adding that Shringla minister A.K. Abdul Momen ity, news reports said. This
F
oreign secretary Harsh was accompanied by Indian and foreign secretary Masud eclipsed Indian investments in
Shringla arrived in Dhaka High Commissioner to Dhaka Bin Momen. Bangladesh.
on Tuesday on a two-day Riva Ganguly Das. Bilateral security coopera- New Delhi has worked hard
Japnam Bindra visit amid China stepping up its Stating that prime minister tion and eco- to retain its posi-
japnam.b@livemint.com interaction with Bangladesh Hasina has not met anyone nomic ties The visit comes tion as an eco-
NEW DELHI following ongoing tensions from abroad in the past few between the two against the nomic partner of
between New Delhi and Beijing months, the person said that countries have backdrop of choice in Bangla-
T
he Supreme Court on at the Line of Actual Control in the Bangladesh leader “greatly been strengthen- China stepping up desh with Modi
Monday rejected a peti- Ladakh. The face-off had appreciated PM Narendra ing since the
interactions with i n a u g u r a t i n g
tion to transfer money heightened following a clash in Modi’s gesture in sending India-friendly community clin-
from the PM CARES Fund cre- Galwan Valley that led to the someone to touch base, convey Hasina returned India’s immediate ics and water
ated to fight covid-19 to the death of 20 Indian Army per- This is Harsh Shringla’s second visit to Bangladesh after he took message and see how the two to power in neighbours treatment plants
National Disaster Relief Fund sonnel and an unspecified over as the foreign secretary in January. sides could take relationship December 2008. to provide safe
(NDRF), adding that donations number of Chinese soldiers. forward.” Areas of interest that Bangladesh is, at drinking water for
to both are voluntary, and the This is Shringla’s second visit cial visit after the suspension of for an event to mark the birth were discussed included devel- present, the largest recipient of Bangladeshis, besides initiating
Centre is at liberty to transfer to Bangladesh after he took international travel following centenary Sheikh Mujibur opment partnership, enhanc- Indian development aid with major projects like the 130-
the money if it so desires. over as the foreign secretary in the novel coronavirus out- Rahman, the father of the ing connectivity, revival of $8 billion in concessional loans. kilometre India-Bangladesh
The public interest litiga- January, as ties between the break. The detection of cov- present Bangladeshi prime economy post covid, and coop- However, during a visit to Friendship (fuel) Pipeline
tion (PIL), filed by lawyers Pra- SC also refused the plea for two neighbours improved in id-19 cases in the country had minister Sheikh Hasina. eration on covid assistance. Bangladesh by President Xi Project between Siliguri in
shant Bhushan and Dushyant formulation of a national plan recent times. He had visited the also prompted Prime Minister Later on Tuesday evening, A proposal for creating a Jinping of China in 2016, Bei- West Bengal and Parbatipur in
Dave, had also sought direc- for covid management. AFP country in March after assum- Narendra Modi to cancel his Shringla met Bangladeshi “bubble” for business, official jing signed deals with Dhaka on Dinajpur district of Bangla-
tions to the government to ing office but this is his first offi- plan to visit Dhaka on 17 March prime minister Sheikh Hasina, and medical travel was dis- electricity, energy, technology, desh.
prepare and implement a questions to be answered with
national plan as per the provi- respect to this plea. The ques-
sions under the Disaster Man- tions include whether the
agement Act, 2005, to tackle Centre can create separate
the damage caused by the cov- funds despite the NDRF being
id-19 pandemic. After a in place and, secondly,
detailed hearing, the judge- whether all contributions/
ment was reserved on 27 July. grants should be credited to
Biz leaders, Nobel laureates may ‘virtually’ attend Delhi solar meet
“PM CARES Fund is an NDRF from PM CARES. RAMESH PATHANIA/MINT
entirely different fund estab- The bench clarified that Utpal Bhaskar the event that projects India’s (EVs), laptops and mobile global corporations, financial
lished as a public charitable anybody could contribute to utpal.b@livemint.com soft power. phones. Lithium-based batter- and multilateral institutions,
trust. Funds in PM CARES fund NEW DELHI Clean energy projects now ies also cater to the consumer civil society, foundations and
PM CARES can- Donations to and also that account for more than a fifth of electronics industry and power think-tanks will be present dur-
B
not be directed to both funds are there is no statu- ertrand Piccard, who India’s installed power genera- grids, given the intermittent ing the inaugural session,” ISA
be deposited to voluntary, and the tory prohibition flew around the world in tion capacity. India has 34.6 nature of electricity from clean said in a statement after a cur-
NDRF,” the Centre is at in place which a solar powered plane, gigawatts (GW) of solar power, energy sources such as solar tain raiser held on Monday for
bench headed by prevents any per- Tesla Inc’ boss Elon Musk and and aims to have 100GW by and wind. the World Solar Technology
liberty to transfer son from contrib-
Justice Ashok SoftBank chief executive Mas- 2022. The summit will showcase Summit.
Bhushan said in the money if it uting to NDRF. As ayoshi Son are among global The who’s who of the global next generation technologies Meanwhile, Germany is
its judgment. wants, SC said long as it is a vol- solar leaders who may ‘virtu- solar landscape expected to that can ramp up solar deploy- expected to join the ISA, Mint
In the 75-page untary contribu- ally’ attend the International attend the summit also include ment at an affordable cost and reported on Sunday. It assumes
judgement, the tion, the grants Solar Alliance’ (ISA) first World Nobel laureates Mario Molina will help provide a multilateral significance given that Ger-
top court refused the plea for made as contributions can be Solar Technology Summit, to and M. Stanley Whittingham, connect when global trade is many is a member of the P5+1
formulation of a national plan credited to NDRF. be held on 8 September in the French ecological transition SoftBank CEO Masayoshi Son is among the global leaders who increasingly being viewed grouping, comprising the five
for covid management, Looking into the constitu- national capital. minister and co-president of may attend the World Solar Technology Summit on 8 September. through the bilateral prism. permanent members of the UN
observing that the existing tion of both fund organiza- ISA, the first treaty-based the ISA assembly Barbara Pom- “High level dignitaries from Security Council—China,
plan under the Disaster Man- tions, the court said PM international government pili, European Commission jointly awarded the 2019 Nobel chief executives and multilat- the world of scientific research France, Russia, the UK, and the
agement Act is sufficient to CARES funds need not be organization headquartered in executive vice president Frans Prize in Chemistry for the dis- eral institutions. and development and a CEO’s US—and has been an early
deal with the pandemic. The transferred to NDRF. The India, is working to ‘virtually’ Timmermans and ISA presi- covery of lithium ion batteries This comes amid plans by conclave will set the tone of the green economy proponent.
bench, also comprising Justi- bench also observed that Cen- rope in most of the global solar dent and Indian power and will deliver the keynote India for domestic manufac- deliberations on low cost, inno- Germany is looking at generat-
ces Sanjay Kishan Kaul and tre is at liberty to transfer the elite for the summit. Prime renewable energy minister Raj address. The summit will also ture of lithium-ion cells, the vative and affordable solar ing two-third of its electricity
M.R. Shah, observed that the funds to NDRF in case it deems Minister Narendra Modi will Kumar Singh. be attended by ministers of 67 building blocks of rechargeable technologies. Senior govern- needs from solar and wind by
court has formulated five appropriate. deliver the inaugural address to Whittingham who was ISA member nations, global batteries for electric vehicles ment functionaries, heads of 2030.

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