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Many paths, one guide

Resilience

Those who navigate and succeed in times of change have one thing in
common—they are resilient.
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doctors are tele-consulting patients, business deals are being closed over
video calls and virtual agents are providing customer support.
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Dial Toll-free How has technology made you more resilient?

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 The Business Benefits of Resilience
Embrace digital technology and build digital capability to be resilient and thrive in the face of change.
Research shows that investments in key digital levers result in aggregated cost savings of 15 to 25 percent.*

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faster speed to market* higher workforce productivity* fewer IT errors and less rework* additional earnings before
interest and taxes*

*The Digital Path to Business Resilience by Boston Consulting Group. Scan the QR code and download the report.

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mint primer
QUICK EDIT
Pvt lenders set to Low-cost
tide over defaults immunity
better than peers Adar Poonawalla, chief execu-
tive officer of Serum Institute of
India, has put out an estimate
BY VIVEK KAUL that the government will need a
budget of ₹80,000 crore for an
Interest rate data shows that private banks are better prepared to
handle the post-covid loan defaults, which as things stand now, will all-India vaccination initiative.
start hitting the balance sheets of banks early next year. Meanwhile, In a tweet on Saturday, Poona-
state-led banks are trying to pump-prime the economy. Mint explains. walla asked if the funds were
available. He didn’t reveal his
Level of readiness arithmetic, but if he meant two
Private lenders were expecting bad loans to rise even before covid-19 struck. doses each of the Oxford vac-
Hence, the difference between the lending and fixed deposit borrowing rates cine for a billion people, that
of private banks is 4.67%, while that of PSBs is much lower at 3.08%. would translate to ₹400 per
Public sector banks Private banks Interest rate differential (in %)
5
shot, a remarkably low cost.
4.67 Since the formula is free, that
4.5 figure presumably reflects just
production and distribution
4 expenses. Even so, it seems to
3.47
highlight a global cost advan-
3.5 tage, lending weight to Prime
Minister Narendra Modi’s
3
3.27 3.08 assurance to the world of cheap
2.5
vaccine availability. Indians, of
Mar 2013 Jul 2020
course, will have to be accorded
Source: Author calculations based on data from the Reserve Bank of India
priority if and when that vac-
SATISH KUMAR/MINT cine gets a go-ahead. And while
What does the interest What is the case with Serum need not be the Centre’s
1 rate data highlight?
Banks pay a certain rate of interest
2 public sector lenders?
The difference between the
sole supplier, its cost calcula-
tion can now serve as a rough
on their deposits, or borrowings, weighted average lending rate and basis on which to plan. Other
and charge a higher rate of the weighted average domestic Indian vaccine makers would
interest on the loans that they give term deposit rate in the case of have to beat Serum’s offer, so
out. In the case of private banks, as public sector banks is at 3.08% and our final bill won’t have to be
of July 2020, the difference has barely moved since January very high. Anything under ₹1
between the weighted average 2019, when it was at 3%. In January
trillion will be a bargain. Mean-
lending rate and the weighted 2019, the interest rate difference
average domestic term deposit rate for private banks had stood at while, we must prepare for a
is 4.67%, while that of public sector 3.82% and has since risen to 4.67%, logistical exercise that’ll need to
banks (PSBs) is much lower. To put with a bulk of the raise coming in be mounted on the scale of a
it in simple terms, the difference the last one year. This clearly tells general election.
between the lending rate and the us that private banks were
fixed deposit borrowing rate of expecting bad loans to go up even
private banks in India, is at a more before the pandemic struck, as
than 7-year high, while that of India was entering an economic
PSBs continues to lag. This is clear
from the data from March 2013 to
slowdown. Bad loans are loans that
have not been repaid for 90 days
MINT METRIC
July 2020. or more. by Bibek Debroy

Land, water and sea,

3 What does a rising interest
rate differential suggest?
By increasing the difference between
The demands of a wannabe.
lending rates and borrowing rates, private
If the virus was a whoop,
banks hope to boost profits. Increases in Now a bacterium in the loop,
provisioning towards bad loans could then
be adjusted against these higher profits.
The world hurtles towards an apogee.
Provisioning is the process by which
banks set aside a certain sum of money
to adjust for losses they might face because
of bad loans. QUOTE OF THE DAY
The pandemic may have slowed
4 Why have PSBs been
behaving differently? 5
When the economy slows down,
How does this put pvt
banks in a better place?
Post pandemic, bad loans will start
us down, but we are adjusting
PSBs are supposed to lend quickly, to hit banks only by early next year.
to the new reality and are on
to mitigate the effects of the Private banks are in a position to track with our projects. Our
slowdown. Former RBI Governor set aside more money as a
Urjit Patel makes this point in his proportion of their loans to meet
Mumbai store will open within
book Overdraft. “Government the losses that may arise from the next half year or so.
banks are encouraged to (over) these bad loans, while PSBs with a
lend to pump-prime the economy lower interest rate differential will
and boost preferred sectors,” he not be able to set aside as much
says. However, lending can grow at money as private banks for this
a fast pace only if the interest rates purpose. However, there is not
are low. This is the reason that the much cause for them to worry as PETER BETZEL
differential for PSBs between the government will be ready to INDIA CEO, IKEA
lending and borrowing interest bail them out.
rates has been almost flat since Vivek Kaul is the author of
January 2019. Bad Money.

I P L P L A Y B O O K
HEAD TO HEAD*
After a convincing win over Sunrisers, RCB were badly
mauled by KXIP, making them underdogs against MI. Mumbai
Indians regrouped after losing to CSK and with Rohit Sharma VS
hitting top form. The pressure on RCB is accentuated by
Kohli’s poor form. The redeeming feature so far for RCB has
been the bowling. Chahal’s been outstanding, and Saini 4 1
probing with pace and swing. But without enough runs
to defend, this might not be of consequence. Place
Dubai
Key players: Rohit Sharma (MI), Virat Kohli (RCB) 28 September at
AYAZ MEMON 07:30pmIST
Senior sports columnist
@cricketwallah *Last five matches
 T
U RA L E
O
Y SV
N E W m
Mint Lite
Stories, views, opinions and talking points that matter, from around the world

F1 RACER Lewis Hamilton’s bid for a record-equalling 91st career Formula One win took a huge hit at the Russian Grand
Prix on Sunday after stewards imposed two five-second penalties for practice start infringements. Stewards had notified
the Mercedes driver, who was on pole at Sochi, before the start that he was under investigation. Hamilton pitted after 17 laps
and dropped from the lead to 11th place. Hamilton is one victory away from matching the all-time win record of Ferrari great
Michael Schumacher. For the rest of the world and national news, here’s Mint Lite.

Ayodhya real estate high in demand

SINCE THE foundation stone-laying ceremony of the Ram
Mandir in Ayodhya a month ago, real estate prices in the Uttar
Pradesh city have doubled. Property prices went up by 30-40%
after the Supreme Court in November paved the way for the
temple construction at the disputed site, where a mosque stood
before it was demolished in 1992 by kar sevaks who claimed an
ancient Ram temple stood at the same site. And the prices have
doubled now since the bhoomi pujan ceremony by Prime
Minister Narendra Modi on 5 August, reports PTI. What has
further contributed to the rise is limited availability of real
estate as the government plans to acquire land for infra projects
befitting an international tourist destination, said people aware
of property-related developments. They said, in the heart of the
town, availability of land is limited and the cost ranges between
₹2,000 and ₹3,000 per square feet.

TikTok attacks Donald Trump ban

HOURS BEFORE TikTok was removed from US app stores
from midnight on Sunday, a lawyer for the popular video-
sharing app told a federal judge that Donald Trump’s
impending ban was irrational given that its Chinese owner,
Bytedance, was in talks to strike a deal the president himself had
demanded, reports Bloomberg. “How does it make sense to
impose this app-store ban tonight when there are negotiations
underway that might make it unnecessary,” attorney John Hall
asked at a Sunday morning hearing on TikTok’s request to
temporarily block the ban. ByteDance is fighting the Trump
administration in court even as it pursues its approval for the
sale of a stake in its US operations to Oracle and Walmart.
Trump has called for bans on both TikTok and WeChat,
arguing the Chinese apps could give China’s government access
to millions of Americans’ personal data.

Most displaced people in India Disaster’s effect on people

Countries with highest number of new displacements due to
DISASTERS SUCH as cyclones and flooding displace
disaster between 1 Jan and 30 June 2020.
the highest number people in India every year, an
(in million)
average of 3.6 million people a year since 2008. In the
first six months of 2020, 2.67 million people have been 2.67
2.52
displaced by disasters such as Cyclone Amphan, the
most in the world (see chart), according to Geneva’s
Internal Displacement Monitoring Centre. Last year,
there were five million new disaster displacements in
India, the highest figure in the world. It was the result 0.81 0.79
of increasing disasters and high levels of social and 0.51
economic vulnerability. In the first half of 2020, cyclo-
nes Amphan and Nisarga displaced the most people
worldwide. Communal violence, particularly in Delhi India Bangladesh Philippines China Somalia
after the adoption of CAA, triggered the majority of
Source: IDMC Internal Displacement 2020: Mid-year update
new conflict displacements in the first half of 2020.
SATISH KUMAR/MINT

If not covid, climate change will kill

AT THE 75th UN General Assembly, world leaders are taking
the long view, warning that if covid-19 doesn’t kill us, climate
change will. Leaders of countries from Indonesia to Palau have
warned that rising seas that will have a greater impact than the
virus. Fiji’s Prime Minister Frank Bainimarama described US
wildfires and high temperatures in Siberia as “environmental
Armageddon”. The islands of Palau and Tuvalu are virus-free
yet both have seen hundreds affected by climate change.
Tuvalu’s leader Kausea Natano, who delivered his UN speech
via video against a vista of turquoise waters and swaying fronds,
said the island is free of the virus but is still recovering from a
pair of tropical cyclones. Such storms are likely to worsen as the
planet warms. Agriculture has become harder to sustain due to
rising sea levels and the pandemic’s effect on movement of
goods exposed food insecurity in island nations this year.

Estee Lauder’s doing shoot in space

COSMETICS MULTINATIONAL Estee Lauder is sending its
newest skincare formula into space on Tuesday for a photo
shoot, and it’s costing them less than it would to sign to mega
influencer. It is paying NASA $128,000 to fly 10 bottles of skin
serum to the International Space Station. Kim Kardashian West
earns between $300,000-500,000 per Instagram post. Once
there, astronauts will take photos of the formula in the cupola
control tower, which has panoramic views of the cosmos. The
images will be used on social media, with the firm planning to
auction one bottle for charity when the items return to Earth
this spring. The Estee Lauder tie-up is part of NASA’s effort to
commercialize low-earth orbit and make it a domain where
private enterprise eventually does business as routinely as the
government conducts spacewalks. NASA also hopes to bolster
space tourism by selling trips to the ISS to private customers.

Curated by Shalini Umachandran and Pooja Singh. Have something to share with us?
Write to us at businessoflife@livemint.com or tweet to @shalinimb

PEANUTS by Charles M. Schulz

 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*
Big Biz prepares for Pepperfry nears break-even,
aims for IPO in 12-18 months
India-plus-one plan
Firms with strong balance sheets chase acquisitions abroad
Swaraj Singh Dhanjal
swaraj.d@livemint.com
MUMBAI
I
ndian companies with
strong balance sheets have
shaken off the shock from
the coronavirus pandemic
to chase overseas acquisi-
tions, hoping to pick up attract-
ive assets whose valuations have
been hammered by the virus.
While the pandemic has
dragged India’s outbound deal
volume down 23% this year,
there have been signs of a recov-
ery in recent weeks. Renewable
energy company Greenko Inc.,
for instance, is in the race to
acquire NEC Energy Solutions, a
struggling US-based battery
maker, Mint reported on Thurs-
day. A day before, the UK’s SKY
News reported that Mukesh
Ambani’s Reliance Retail Ven-
tures Ltd is eyeing bankrupt
retailer Debenhams.
To be sure, Reliance has
denied that it is looking at
Debenhams.
DON’T MISS
RBI TO MAINTAIN STATUS QUO
RBI may keep interest rates unchanged
in the monetary policy committee
meeting this week, according to a Mint
survey of economists and bankers. >P3
VOL. 14 NO. 234 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR) 20 PAGES
FARMERS FORM BASIS OF A IN FIRST TRUMP-BIDEN DEBATE, US
MONDAY, SEPTEMBER 28, 2020
LIVEMINT.COM
SELF-RELIANT INDIA: MODI uP8 WILL FINALLY SEE ITS CHOICE uP6
Tata taps wealth
funds to buy out
Madhurima Nandy
madhurima.n@livemint.com
co-founder and chief executive
officer Ambareesh Murty said in
grow. There is no scope for com-
placency, and we need to execute Shapoorji stake
BENGALURU an interview. “In August, we the way we have all this while.”
almost broke even. We are gun- The Mumbai-based Pepper-
Jayshree P Upadhyay
F
urniture retailer Pepperfry ning to file for an IPO in 12-18 fry’s IPO plans come at a time
m MINT GRAPHITI is on the cusp of profitabil- months. For an IPO, a track when discretionary spends jayshree.pyasi@livemint.com
ity and plans to go public as record of at least 6-9 months of across sectors, including furni- MUMBAI
BIG DEAL early as next year, joining a slew profitability is important to show ture retail, have been affected
T
of Indian startups planning to tap the business is capable of making by the coronavirus lockdown he Tata group has
Covid has dragged outbound deal volume down 23% this year, the capital markets. money. Over 6-12 months, we will and economic distress. reached out to several
but there have been signs of a recovery. A look at key deals.
“We set a goal of profitability focus on not only profitability but investors, including sov-
LOOKING FOR A 2020 BUMP for the early part of next year,” will also use the opportunity to TURN TO PAGE 10 ereign wealth funds, to raise
DEAL TALK funds to buy out the Mistry
Deal value (in $ bn)
Number of deals
183 FIRMS in pharma, family’s stake in Tata Sons Ltd,
12.9 chemicals and IT two people directly aware of
sectors are looking the ongoing negotiations said.
157 175 to expand overseas N. Chandrasekaran, chair-
151 87
5.1
6.2 157
2.8 2.8
3.7
AFTER a 2018 high,
and a 2019 low,
3-member Stock market cold to man of Tata Sons, is leading
the talks with potential inves-
Tata Sons chairman
N. Chandrasekaran is leading
outbound M&As committee tors, the success of which will the fundraising talks. MINT
2015 2016 2017 2018
ENERGY, TECH AHEAD OF THE PACK
2019 2020
Year to date
are looking up
(Target/Acquirer) Value (in $ mn)
to run LVB farm sector reforms determine whether the bitter
feud between the Tata group
and its biggest minority share-
(SP) group is likely to broadly
decide on the terms of the
holder, the Mistry family, potential separation, includ-
137.5 64 65 42 Shayan Ghosh & Harsha Jethmalani
DWS Ltd/ Zen3 Evolutionary Kaleidoscope rent tightly controlled sale of ends, the people said, request- ing the final valuation and
2,725 HCL Infosolutions Systems Arabia- Innovation/
Jayshree P. Upadhyay harsha.j@livemint.com agricultural items. ing anonymity. timelines before 28 October,
Lummus Tech/ Technologies Inc/ West Asia biz/ Infosys
 Haldia Petrochemicals Tech Mahindra Mastek But the stock market, which “Chandrasekaran has spo- when the Supreme Court
T
 Rhone Capital LLC MUMBAI he recent agricultural has been lamenting the lack of ken to several potential inves- hears the matter next.
reforms are being hailed reforms, is looking barely tors, including a large Euro- “Both Tata and Mistry fam-
T
Source: Refinitiv
he Reserve Bank of India by some as enthused. Ana- pean sovereign wealth fund,” ily want a quick resolution of
SARVESH KUMAR SHARMA/MINT
(RBI) on Sunday approved the sector’s 1991 B E H I N D lysts say while said one of the two people the court matters. Mistry firms
The ramifications of the crisis unscathed or caught the tail- the formation of a three- moment. Rules
m T H E N E W S the reforms are cited above. “The discussions are keen on a quick exit and
on businesses have not been wind. Software services compa- member committee of directors relating to the positive, effec- are focused on the likely valua- want a complete separation,”
uniform. Software services, nies, for example, have seen to temporarily run the struggling sale, pricing and storage of farm tive execution of the laws are a tion and a possible exit map for the person said.
drugs and packaged-food indus- produce have been relaxed. This the investors.” The Mistry family’s stake,
try have either remained TURN TO PAGE 10 TURN TO PAGE 10 is a drastic change from the cur- TURN TO PAGE 10 But given the large size of held through two investment
the transaction, Tata group firms, is estimated to be ₹1.5
may offer to purchase the Mis-
try family’s 18.4% stake in a
trillion, according to the valua-
tions submitted to the
ECONOMIST AHLUWALIA DIES HERD IMMUNITY IS FAR OFF FARM BILLS GET KOVIND NOD JASWANT SINGH DIES AT 82 staggered manner, instead of Supreme Court.
So vast was Isher Judge Ahluwalia’s India is far from achieving herd immunity President Ram Nath Kovind on Sunday Jaswant Singh, former Union minister acquiring the entire share- On 22 September, the
network and so pervasive her charm, that for covid-19, Union health minister gave assent to three farm bills that have and a founding member of the Bharatiya holding at one go, the second Shapoorji Pallonji group said
she personally knew every economist Harsh Vardhan said on Sunday during an triggered protests by farmers, especially in Janata Party (BJP), died on Sunday after a person cited above said, add-
you might name, in India and abroad. >P9 interaction on social media. >P10 Punjab and Haryana. >P6 prolonged illness. >P8 ing that the Shapoorji Pallonji TURN TO PAGE 10
02 MONDAY, 28 SEPTEMBER 2020
NEW DELHI DEALS
PLAIN
FACTS

Shunning China may hurt our tech

Blocking China will leave a void in India’s technological ecosystem, which has become dependent on the northern neighbour for tech as well as capital
GETTY IMAGES

Nikita Kwatra &

m MINT GRAPHITI
situation: Chinese investors pay off for the venture capital- Chart 1a Chart 1b

Sriharsha Devulapalli
MUMBAI/NEW DELHI
back the underdogs who start ist still help Indian entrepre- Chinese investments in Indian tech firms US Startups have been the prime beneficiaries
from zero. US companies neurs learn, innovate, and pay are now declining after the 2017-18 boom India of Chinese investments in the country
come and invest in established the bills.” Private equity investment into India (in $ billion) UK
Number of companies that have received Chinese investments (data as of Feb 2020)
business houses.” (see chart 2). Sinha clarified in an inter- from investor firms based in various countries China

O
ver the past few India is an important fron- view with Mint that the report 14.3 Startup Portfolio Other direct
investment* investment investment
years, India has tier in the tech war, with a primarily aimed to encourage
been a key bat- growing demand for mobile removal of tax distortions that All investments Tech-related investments
tleground for phones and internet. While penalize domestic investments 5 46
American and the defence and strategic com- in startups rather than to block
Chinese tech companies. Now, munity worries about Chinese foreign investments. The gov- 4
American firms may have an influence on India’s tech eco- ernment would, however, 4
3 16
edge. system, greater dependence want to see the startup ecosys-
As public sentiment turns on the US is not without risks. tem rely more on domestic 2 2
against China amid an ongoing It could bring back the days sources of funding, he said.
border conflict, New Delhi has when the Indian ecosystem However, Indian sources, 1
3 1
clamped down hard on Chi- was vulnerable to events in Sil- barring exceptions such as 0 6
nese presence in the Indian icon Valley, said Arun Natara- Ambani, simply do not have 2015 2016 2017 2018 2019 2020* 2015 2016 2017 2018 2019 2020*
NCR
tech ecosystem. Over 200 Chi- jan, founder of Venture Intelli- the kind of money needed to Tech-related investments include private equity investments in internet-specific, *as of 18 Sep
Jaipur
semiconductor, computer software and hardware industries.
nese apps have been banned gence, which tracks venture replace the likes of TikTok.
and Chinese capital flows into “While domestic investors can Kanpur
investments in Reliance on the the country. provide early-stage funding to Chart 2
Ahmedabad
Indian startups US could make “Over the last home-grown consumer apps, Some of the biggest deals of 2020 in India
Bharuch Kolkata
are increasingly India’s ecosystem five years, Chi- they don’t have deep-enough were driven by US-based investors
facing scrutiny vulnerable to nese and other pockets to provide multiple Top investments by private equity/venture capitalist firms in India (in 2020 so far)
2 2
from regulators. South Asian funds rounds of capital that some of Company/ Amount
events in Silicon
Such moves became a coun- these usage-driven apps need investors* (Country of origin of major investor(s)) (in $ million) Pune
Valley again, say terbalance to the before they start generating 2
were preceded by September 2020 Mumbai 2
restrictions on experts volatility of revenue,” said Natarajan. May 2020
Jio Platforms Reliance Retail Ventures Hyderabad
foreign direct investments com- Putting up firewalls around Silver Lake, KKR
investment (FDI) ing from the US,” a nascent tech ecosystem will Public Investment Vijayawada 1
(US)
Fund, Vista 17
imposed a few months ago to said Natarajan. “With China only starve Indian firms of cap- Equity Partners, Bengaluru
prevent opportunistic take- stepping back, entrepreneurs ital and technological inputs. It Mubadala 9,871 March 2020 Chennai
overs from China. India hopes will again become dependent is worth noting that doing Investment, 1,769 Oyo 6
that these moves will inhibit on the US for big investments.” business in India’s digital ADIA, Silver Lake, 507 SoftBank Corp. 4 1
China’s ability to exert influ- Some of the biggest deals economy is already quite diffi-
L Catterton Asia, (Japan) 4
TPG Capital, 567
ence in the country. this year were driven by cult for overseas firms and Qualcomm Ventures,
500 2
January 2020
However, these curbs have US-based investors, with investors. According to the KKR, Intel Capital, January 2020 5
General Atlantic RattanIndia Power 37
created a void in India’s Mukesh Ambani’s Reliance Digital Trade Restrictiveness O2 Power
(US) Varde Partners,
startup universe. In the last Industries Ltd (RIL) cornering Index estimated by European Goldman Sachs EQT, Temasek
few years, China invested sig- much of the capital inflows. Centre for International Politi- (US) (Sweden, Singapore)
*refers largely to PE/VC investments in startups.
8
nificantly in Indian tech start- A recent report by the par- cal Economy (ECIPE) in 2018, *Only PE firm investments listed here. Overall deals may also include investments from other
ups. According to data from liamentary standing commit- India is among the most pro- sector-specific companies. For example, in the Jio deal, social media giant Facebook was the biggest
The map has been sourced from a Gateway House report by Amit Bhandari and Aashna Agarwal.
investor. Data as of 23 September.
Refinitiv, a financial solutions tee on finance headed by Jay- tectionist countries in the
firm, since 2015, private equity ant Sinha suggested that world (see chart 4). Chart 3 Chart 4
(PE) firms from China have Indian startups reduce their China is no better, but early
invested $3.3 billion in India, dependence on foreign sour- investments by the Chinese
Chinese tech firms have been grappling with China and India rank among the most
largely in firms catering to the ces altogether, be it from the state have helped the country roadblocks in other countries in recent years restrictive economies for digital trade
internet-based economy (see US or China. build a self-sustaining tech A timeline of countries intervening to block Chinese technology firms Digital restrictiveness based on DTRI (2018)
charts 1a and 1b). “Chinese and ecosystem. It is
These investments have US tech compa- Experts say it is in unlikely that a 2018 Most free Restrictive NA
declined sharply in recent nies have not India’s interest to r e s o u r c e - Pentagon bans Free Most restrictive
the sale of Huawei CFO
months. Since April end, when come up on their tap foreign capital strapped Indian May arrested in Canada
Huawei and ZTE
the FDI rules were tightened, own,” said Jabin that is willing to state will be able
phones on
only six deals have been signed Jacob, associate to match such Japan blocks Huawei,
between Indian tech firms and professor in the
take chances as efforts.
military bases Dec
ZTE from bidding for
Chinese PE firms. In compari- department of venture capital is At a time when government contracts
son, 15 such deals were signed i n t e r n a t i o n a l a high-risk game India’s economy 2019
Trump bans
in January-April, and 37 last relations, Shiv has been crippled Huawei with a
year. Not just investment Nadar University. by a raging pan- national security May
funds, even Chinese tech firms “(Similarly,) the Indian gov- demic, the tech ecosystem has India bans TikTok and 58 other
order Chinese apps after border conflict
have become cautious about ernment too should hold shown greater resilience. Poli- 2020
investments in India. hands of these companies.” cymakers should aim to foster
US-based firms seem to be However, foreign funding competition and innovation in Jun India takes steps to lock Huawei
UK follows US in
picking up some of the slack. remains crucial in a capital- the sector rather than restrict banning Huawei and ZTE out of its 5G roll-out
The churn in the tech eco- starved economy. “Venture either capital or technology from its 5G Jul Trump says he was considering
system is partly an outcome of capital involves a lot of flows. The state should pro- network banning Alibaba
the US-China tech war, said risk; perhaps one out of 100 vide a helping hand in devel- Aug
Santosh Pai, corporate lawyer investments is really success- oping tech capabilities. At the Trump tells
and honorary fellow, Institute ful,” said Nitin Pai, director, very least, the state should not reporters he has
The Digital Trade Restrictiveness Index (DTRI) covers trade policy restrictions in the digital economy, ranging
of Chinese Studies. “India is a Takshashila Institution. “In come in the way of tech firms.
plans to ban Sep India bans PUBG and from tariffs on digital products, restrictions on digital services and investments, restrictions on the movement
TikTok in the US of data, and restrictions on e-commerce. The index ranges from 0 (completely open) to 1 (virtually closed).
battleground where Chinese such a game, it is in India’s This is the first of a two-part 117 more Chinese apps
investors can place bets interests to tap foreign capital series on trade and cross-border
against US companies,” he that is willing to take such flows in the post-covid world. Source: Refinitiv, Venture Intelligence, ECIPE'S Digital Trade Restrictiveness Index (2018), Gateway House report (March 2020), Mint research
said. “It is a ‘David and Goliath’ risks. The 99 bets that do not nikita.k@livemint.com
AHMED RAZA KHAN/MINT

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 DEALS AND STARTUPS MONDAY, 28 SEPTEMBER 2020
NEW DELHI 03
TOP ST RIES
Voda-Idea to
upgrade 3G Vodafone ruling may set RBI likely to keep
rates unchanged
users to 4G in
a phased way
Ishita Guha
precedent for other cases Gopika Gopakumar
gopika.g@livemint.com
MUMBAI
ishita.g@livemint.com

T
NEW DELHI he Reserve Bank of India
(RBI) is likely to keep
The setback may prompt the Indian govt to renegotiate certain investment treaties
V
odafone Idea Ltd (Vi) interest rates unchanged
will upgrade its existing in the monetary policy commit-
3G customers to 4G in a tee (MPC) meeting this week,
phased manner to offer faster Jayshree P. Upadhyay & would apply only in a situation according to a Mint survey of
data speeds and services using Kalpana Pathak where India has a bilateral invest- economists and bankers.
Vi GIGAnet technology, the ment treaty, and the treaty does not Respondents to the poll—10 RBI may focus on keeping bond
Birla group company said in a MUMBAI exclude tax from its purview,” he eminent economists and senior yields contained, say analysts.
statement on Sunday. added. The finance ministry’s stand bankers—were unanimous that

The announcement follows
its efforts to integrate Vodafone
India Ltd and Idea Cellular Ltd,
two years after the merger in
August 2018. The brand inte-
gration was announced earlier
this month. “The company will
continue to offer basic voice
services to its 2G users. The
enterprise customers currently
using 3G based services will be
upgraded to 4G and 4G based
IoT (internet of things) applica-
tions and services,” India’s
third largest telco said.
With the integration of net-
work nearing completion, Vi
has improved its 4G capacity by
re-farming large chunks of 3G
spectrum to 4G. It has
re-farmed 900 MHz (mega-
hertz), 1800 MHz and 2100
MHz spectrum bands to 4G
network. “With highest quan-
tum of spectrum in India and a
large part of it re-farmed for 4G,
Vi is best placed to upgrade our
2G/3G users to high-speed 4G
data services,” said Ravinder
Takkar, managing director and
chief executive, Vi.
V
Building odafone Group Plc’s big
public infra
through debt
win against the Indian
financing can government could set a
revive covid precedent for similar
hit economies: arbitration cases,
IMF
bit.ly/2GiGehV
including the one initiated by Cairn
Energy Plc, legal experts said,
potentially prompting India to
speed up its renegotiation of similar
investment treaties, at the risk of
raising the country’s political risk
premium.
On Friday, an arbitration court in
the Hague ruled that India’s over
₹22,000-crore demand from Voda-
fone Group violated the bilateral
investment treaty (BIT) between
India and the Netherlands, adding
that any attempt to enforce the
demand would violate India’s inter-
national law obligations. India has
said it will study the arbitration
award and decide on a further
course of action after legal and other
consultations. Experts said they
expect more such rulings against
India.
In March 2015, Cairn Energy
began international arbitration pro-
ceedings against India under the
UK-India BIT, after India’s retro-
after the Vodafone ruling is keeping
concerns alive. “We shall be exam-
ining the order carefully, and fur-
ther appropriate action would be
taken after obtaining a legal opinion,
including, inter alia, challenging the
award by filing an application before
the appropriate court in Singapore,
which is the seat of the arbitration,”
said a government official with
direct knowledge of the matter.
The government is also in the
process of withdrawing from BIT
across jurisdictions.
“The Indian government is duty-
bound to take all steps to protect
Cairn Energy began similar arbitration proceedings against India in 2015 public money, and if there is any
under the UK-India bilateral investment treaty. HT attempt to avoid taxes by routing the
transaction through tax havens, it is
spective tax made it liable to pay Energy from selling its 10% stake in entitled to take all measures, includ-
₹10,570 crore. The arbitration panel Cairn India. ing an amendment in the law to stop
has finished hearing the case. A “This judgement sets an impor- such abuse,” this person added.
Cairn spokesperson said, “We have tant precedent not just for tax but According to Richie Sancheti,
been advised by the international also for investments in general. After leader, investment funds at law firm
arbitration panel to expect the out- an investment is made, if the coun- Nishith Desai Associates, the set-
come “after the end of summer”. try changes its policies retrospec- back could also lead to further with-
Cairn Energy had done an inter- tively, which impacts a company’s drawal or disengagement from BITs
nal share transfer and reorganiza- investment, then the country has to going forward.
tion in 2006. India in 2014 applied make good the losses incurred,” said Gireesh Chandra Prasad in Delhi
the new retrospective tax to this Dinesh Kanabar, CEO, Dhruva contributed to the story
transaction and barred Cairn Advisors. “However, this precedent jayshree.pyasi@livemint.com
curbing inflation, currently hov-
ering above 6%, remains the pri-
mary concern of the MPC.
“We do not expect RBI to cut
the policy rate while keeping its
stance accommodative. It could
instead focus on its intention to
keep bond yields contained and
announce plain vanilla OMOs
(open market operations) or fur-
ther Operation Twists,” said
Abheek Barua, chief economist
at HDFC Bank Ltd.
Six respondents said MPC
will cut rates by 25-50bps
before the end of March as
growth concerns will likely per-
sist. Several respondents said
the timing of the next rate cut
could well be pushed to the next
fiscal unless inflation eases. RBI
kept its repo rate unchanged at
4% at its meeting last month
and said it would keep policy
accommodative to support an
economy that has contracted
23.9% in the quarter ended 30
June.
“We push back our call for
another 50bps of repo rate cuts;
we now expect 25bps cuts in
April and June 2021 (versus
December 2020 and February
2021 previously), as we expect
inflation to be back closer to
MPC’s mandated CPI inflation
target of 4%,” said Anubhuti
Sahay, an economist at Stan-
dard Chartered Bank.
The consumer price inflation
for August stood at 6.69%,
above the top end of RBI’s
medium-term target range of
2-6% for the fifth consecutive
month amid supply disrup-
tions. RBI, in its previous policy,
said inflation will remain ele-
vated in Q2 but may moderate
in the second half of the fiscal
year. “Headline inflation is
likely to ease over the next one
year, below the inflation target
of 4%, on the back of food infla-
tion subsiding. We expect aver-
age headline inflation over
2HFY21 to be 4.3%, lower than
the first half average of 6.6%.
And, we expect it to ease further
in FY2021-22 to 3.4- 3.6%, on
relatively weak demand condi-
tions,” said Gaurav Kapoor, an
economist, IndusInd Bank.

m MINT SHORTS
HDFC Bank aims at 10-fold rise in
merchant segment in 3 yrs to 20 mn
Mumbai: HDFC Bank is targeting a ten-fold increase in the num-
ber of small merchants it serves to 20 million in the next three
years, officials at the largest private sector lender said. The bank
started targeting merchants about 18 months ago with solutions
on accepting payments, providing value-added services such as
creating a simple website for them, taking care of their inventory
and lending based on cash flows, through a single app. The mer-
chant relationships accrue in fees as the services are charged, in
interest income for the lending and also in low-cost current and
saving account (Casa) deposits. PTI

AAI plans to upgrade runways

at seven airports by March 2022
HT

New Delhi: The Airports Authority of India (AAI) is plan-

ning to upgrade runways at seven airports across the coun-
try by March 2022, senior officials said on Sunday. These
seven airports are at Jammu (J&K), Kolhapur (Maharash-
tra), Jabalpur (Madhya Pradesh), Barapani (Meghalaya),
Kadapa (Andhra Pradesh), Tirupati (Andhra Pradesh) and
Thoothukudi (Tamil Nadu), the AAI officials told PTI. PTI

CII asks RBI to relook circular on

opening of current accounts
New Delhi: Confederation of Indian Industry (CII) has urged the
Reserve Bank of India to reconsider its circular on the opening
of current accounts, saying that the guidelines are likely to dis-
rupt the servicing of clients by banks leading to inefficiencies and
delays. RBI on 6 August issued a circular imposing restrictions
on borrowers opening of multiple current accounts. “While the
guidelines announced by RBI are of appropriate intent, they are
likely to disrupt the ongoing servicing of clients by banks/
NBFCs/ HFCs,” CII said in a statement. PTI

Pradhan calls for prime tourist

cities to switch to 100% clean fuels
New Delhi: On the occasion of World Tourism Day, oil minister
Dharmendra Pradhan on Sunday urged for switching prime tour-
ist destinations to 100% clean fuel. He was addressing a virtual
meet on ‘tourism and rural development’ along with Tourism
Minister Prahlad Singh Patel, an official statement said here.
Pradhan commended the Ministry of Tourism for its novel initia-
tive ‘Dekho Apna Desh’ that promotes and encourages local heri-
tage and tourist sites. PTI

FPIs pull out net ₹476 crore so far

in September from Indian markets
New Delhi: Foreign portfolio investors (FPIs) have pulled out
₹476 crore on net basis so far from Indian markets in September,
reflecting a cautious stance by participants amid fears of resur-
gence of covid in Europe and other countries. According to
depositories data, FPIs have withdrawn a net ₹4,016 crore from
equities and invested a net sum of ₹3,540 crore in debt instru-
ments during 1-25 September—a net outflow of ₹476 crore. PTI
04 MONDAY, 28 SEPTEMBER 2020
NEW DELHI

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%) CLOSE 1-WEEK CHANGE (%)

37,388.66 -3.75 11,050.25 -3.95 9,156.1 -4.22 26,397.7 -4.19 11,176.3 -3.99 14,336.68 -4.73 14,495.58 -5.26
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

-3.75 7.31 -3.68 7.40 -3.71 7.72 -5.05 1.80 -3.86 6.58 -5.03 8.43 -2.53 14.99
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

31.02 -3.12 32.85 -3.41 36.17 -2.01 36.12 -3.95 33.24 -3.50 40.40 0.78 58.78 8.31

m MINT SHORTS
Traders fear long period of
UTI AMC IPO lags peers on growth,
volatility post election day
Donald Trump has all but promised to dispute the
election outcome if he loses. Wall Street’s taking
him at his word. Volatility in markets from stocks
profitability and also on valuation
to currencies and bonds show investors bracing
for turbulence not just on election day, but for the Clifford Alvares AUM contracted by about 60% since
Note that management fees are
ensuing weeks as well. The fear is that results from clifford.a@livemint.com March 2018. higher in active equity AUMs. Peer check AAUM market share June 2020
(in %)
Price-earnings multiple (FY20)
(Right-hand scale)
the 3 November vote—already the most expensive Besides, the overall share of active
The general downtrend in equity UTI AMC’s low 15 40

T
event to hedge against ever—won’t be clear he street’s enthusiasm for funds in its total AUM is also quite
AUM across the industry is also a market share is a
concern, though 36.7
enough that a winner emerges without a pro- UTI Asset Management good at 25%, which has increased of
concern. In August, there was a net
it compares well 12 35.6 32
tracted legal battle. If that happens, the potential Mazagon Co.’s initial public offering withdrawal of ₹4,000 crore from late. with peers on FY20
Dock
for political chaos and prolonged uncertainty is Shipbuilder
(IPO) could be mixed. UTI AMC’s presence in smaller
equity funds. Further, retail inves- price-earnings
seen as a bigger risk for equity markets than who s IPO opens IPOs are doing well with tors are also dabbling in equitytowns is a positive, which helps it multiple. 9 24
25.7
actually wins the vote, as per UBS AG.BLOOMBERG this week: record subscriptions driven by high investing directly, which is another
bring in a larger share of inflows
All you want participation. However, the current concern for the growth of mutualfrom the B30 towns (B30 towns are
to know 6 16
market volatility has a level below the
Shift in tone
bit.ly/2S5q3HD been a spoke in the KEY METRICS top-30 cities).
wheel that could This offers diversity
Russell 2000, Nasdaq 100 reverse returns while 3 8
cause investors to UTI AMC’s presence ITS operating profit ITS price-earnings in terms of AUM flows,
the S&P 500 index keeps falling. 14.5 7.3 5.4
S&P 500 Nasdaq 100 Russell 2000 (in %)
focus on some of the in smaller towns is a margin at 40% for
positive, which helps FY20 is the lowest
multiple on its FY20
earnings is low at 26,
and may be less prone
8 imperfections in the bring in a larger share compared to peers, but compares well to market volatility. In 0 0
Source: Company, HDFC AMC Nippon Life UTI AMC
6
company’s perform- of inflows such as HDFC AMC to the listed peers addition, UTI manages Bloomberg AMC
ance. ₹8.4 trillion in pension
4
UTI’s average asset and provident funds as SATISH KUMAR/MINT

2 under management (AAUM) market funds. Besides, stand-alone fund on June 2020, which includes lowest compared to peers, such as on its FY20 earnings is 25.7 times. In
0 share is a bit of a sore point. Its March houses are seeing slower growth retirement solutions and offshore HDFC Asset Management Co. Ltd at comparison, HDFC AMC and Nip-
-2 2014 AAUM market share stood at compared to fund houses that are funds. Still, UTI’s profitability has 78%, and Nippon Life India Asset pon Life AMC are trading at 36 and
8.2%. This has since shrunk to 5.4% backed by banks, said analysts. been hit because of a contraction in Management Ltd’s 47%. The man- 37 times FY20 earnings, respec-
-4
in June 2020 among domestic One good thing is that the asset fund management fee income and agement is adopting cost-control tively. While the valuations may be
-6 mutual funds. The fund house saw a management company’s (AMC’s) high operating costs. In the last two measures to usher in efficiencies. enough to see the IPO garner sub-
31 Jul 2020 25 Sep 2020
Note: Data represents weekly data from July-end till higher erosion in debt funds because equity AUMs have held up better years, UTI’s operating profit shrunk The one box that UTI AMC ticks scription, profitability and market
September-end. of the turmoil in the debt market. As despite the turmoil. Equity AUMs 22% annually. Besides, operating comparable to peers is valuation. share gains will be a factor to watch
Source: Bloomberg
a result, the size of its income fund slipped about 9% since March 2018. profit margin at 40% for FY20 is the UTI AMC’s price-earnings multiple out for in the long run.
SATISH KUMAR/MINT

S&P 500’s fourth week of

losses sends alarming signs
The September stock-market selloff that started
as comeuppance for overheated tech shares
evolved last week into a more troubling sign for
Havells’ refrigerators launch The corporate borrower is the loser
the US economy. While stocks advanced on Fri-
day after lawmakers revived hopes for a fresh
spending bill, the S&P 500 notched a fourth
timely, but the stock is pricey in stand-off between RBI and market
straight weekly drop. This time, it wasn’t Apple or
Tesla that bore the brunt of selling. Companies Pallavi Pengonda Aparna Iyer tion and even for the open market Behind the twists is the effort to flat-
with profits most closely tied to economic growth, pallavi.p@livemint.com
Cool move aparna.i@livemint.com operations (OMO) auction on ten the yield curve.
Havells India’s entry into the refrigerators segment would
like commodity producers and banks, led the enable it to tap into the vast market of the category.
Thursday, where the central bank However, the central bank has

H T
drop. The recovery trade faltered, with airlines avells India Ltd will he government bond market was to buy bonds. largely failed to do so. The spread
Market size of categories (in ₹ crore) Penetration rate (in %) (Right-hand scale)
sinking the most since June and small-caps dip- enter into the refriger- and the Reserve Bank of India RBI has responded by refusing to between the 1-year and the 10-year
ping below their average price for the past 200 ator segment under its 30,000 35 (RBI) are not seeing eye to eye accept bids. Bond sale auctions in yield has only widened in the last six
days. Virus trends worsened, and election jitters consumer durable brand 24,000
33 28
on yields for the past several weeks. August saw devolvement, while all months.
weighed on sentiment. BLOOMBERG Lloyd, it said on Thursday. The RBI wants the yield curve to the bids at the OMO auction were In this RBI-market standoff, the
The company will double the 18,000 21 be flatter than it is, with long-term refused. loser has been the cor-
range with an additional 25 bond yields coming down. For that, The stand-off con- Corporate bond porate borrower. “A
12
Mexico slows rate cut pace models by Diwali and also 12,000
8
14 it is willing to buy long-term bonds tinues with the 10-year yields have risen key question to ask is
launch a new range of dish- from the market. benchmark bond get- whether the purpose
as easing cycle nears end washers at the same time.
6,000 7
However, bond traders see no ting devolved on
by 15-20 basis
of the liquidity meas-
11,200 18,500 25,000 points recently
Mexico’s central bank cut its key interest rate by The development is timely reason for a fall in yields, given the underwriters at Fri-
0
Washing Air Refrigerators
0
and this does not ures and the Operation
a quarter point, the least since February, in a sign as the festive season will start expectations on inflation and the day’s auction as well. Twists has been
the current monetary easing cycle is nearing its soon. “The (refrigerators)
machine conditioners
government’s medium term fiscal The bone of conten- augur well for achieved. That pur-
Note: Data for FY20 Source: Motilal Oswal Financial Services Ltd, company
end after inflation sped past target. Banco de Mex- launch plugs an important gap path. Besides, the sovereign ends tion—yields. It has borrowers pose was to keep bor-
ico, led by governor Alejandro Diaz de Leon, in Lloyd’s product portfolio of SATISH KUMAR/MINT up borrowing the most from the become clear that the rowing costs for the
unanimously voted to lower borrowing costs to air conditioners, washing market share gains through is exposed to real estate/infra- 8-12 year tenure, which is known as central bank does not private sector benign,”
4.25%, in line with 18 of 23 estimates in a Bloom- machines and TVs,” said ana- attractive pricing points,” structure activity, and may the belly of the curve, and the mar- want the 10-year yield to go beyond said R. Sivakumar, head of fixed
berg survey. Four economists expected the bank lysts from Motilal Oswal added Motilal Oswal. take time to recover,” Nomura ket wants a fair price for swallowing 6%. income, Axis Mutual Fund.
wouldn’t chop rates while one thought it would Financial Services Ltd in a Havells’ stock has fallen by Financial Advisory and Secu- the supply. Meanwhile, the central bank has The expectations of a pause in
deliver another half-point cut, the same pace of report on 24 September. The more than 2% in the past two rities (India) Pvt. Ltd said on 14 Neither side has relented. Bond been conducting Operation Twist rate cuts and renewed concerns
the previous five decisions. The decision was refrigerator category has a trading days on the NSE. How- September. Ebit is earnings traders have bid at higher yields for auctions in which it simultaneously over inflation have driven up corpo-
based on inflation forecasts that gave it “limited” penetration level of about 33% ever, the shares are at present before interest and tax. every consecutive bond sale auc- buys and sells government bonds. rate bond yields by 15-20 basis
space to cut further, policymakers said in a state- in India and a market size of almost equal to their pre-covid Havells reasonably coped points recently. Yields are still
ment. BLOOMBERG ₹25,000 crore, highs in January. with the pandemic in the June about 100 basis points lower than
the brokerage Havells’ shares As such, valua- quarter, keeping a tight lid on
Widening 1-year yield 10-year yield (in %)
they were six months ago.
7
said. are at present tions are not costs, with revenues falling gap However, the beginnings of a rise
Competition is almost equal to cheap. Based on sharply. However, covid-19 The gap between in yields does not augur well for
Outperforming peers a worry even as Bloomberg data, makes it tough to predict a sus- the 1-year
6.5
borrowers. What has made things
Paraguay’s second quarter GDP shrinks the their pre-covid 6.31
there is potential
highs in Jan and as the stock trades at tainable demand recovery. complicated is the preference for
government bond 6
least among Latin American nations. yield and the
for growth. The 49 times esti- In general, the robust bal- 6.04 only top-rated issuers. Also, the cor-
Year-on-year change in Q2 GDP (in %)
top three players such valuations mated earnings ance sheet and strong brand of benchmark 10-year 5.5 porate bond market remains illiq-
Uruguay Chile Mexico Peru —LG, Samsung, are not cheap for financial year Havells augur well, but the yield has widened uid for many tenures.
Paraguay Brazil Colombia Argentina in the last six 5 4.81
and Whirlpool— 2022. stock’s expensive valuations The upshot is that RBI’s meas-
months, reflecting
together account There are some already seem to be factoring in a steep curve. ures have worked but not to the full-
4.5
for a large part of the market risks to Havells’ core busi- a brighter picture. “The com- est extent. That demands more
-6.5 share. Voltas Ltd has also nesses. “Growth in its core seg- pany is expanding its footprint steps or a strong message that yields
-10.6 -11.4
4 3.73
entered this segment. ments (switchgear, cables/ in white goods led by its brand should be benign. The bond market
-14.1 “Competitive intensity may wires and lights, which cur- Lloyd and its success in this 3.5 needs a willing buyer of govern-
-15.7
-18.7 -19.1 increase given that both Voltas rently contribute 57% and 78%, segment can be a key stock Source: Bloomberg 3 Apr 25 Sep ment paper and not an adversary on
and Lloyd are likely to target respectively, of revenue/Ebit) catalyst,” said Nomura. yields.
SATISH KUMAR/MINT

Source: Bloomberg -30.2

SATISH KUMAR/MINT

Latin America’s winner is a

nation helped by farming
Accenture’s healthy order-wins underpin optimism in IT stocks
Paraguay has so far outperformed all main Ameri-
can nations during the pandemic with an eco- R. Sree Ram comforting news for IT firms. guidance for the fiscal year end- programs being executed, and
Gaining strength
nomic contraction that has been cushioned by sreeram@livemint.com Orders in this segment grew 10% Accenture saw second-largest quarterly order bookings, helped by
ing August 2021 is lower than the base effect,” it said.
strong results in the agriculture and construction to $7.5 billion, the highest in strong project-wins in the outsourcing segment. growth rates in the previous The commentary is broadly in

A
sectors. The landlocked South American nation ccenture Plc’s latest
recorded a 6.5% decline in gross domestic product results strengthen the
in the second quarter from a year ago, the central street’s expectations of a
bank reported on Friday. Farming expanded recovery in the IT sector. The
17.5% in the second quarter, while construction global IT major reported a 1% fall
grew 9% in the same period. “The results have sur- in constant current revenues in
prised to the upside,” Central Bank of Paraguay the quarter ended August. How-
chief economist Miguel Mora said in a live web- ever, outsourcing, where Indian
cast on Friday, adding that there’s upside bias to IT has greater presence, held up,
the bank’s forecast for a 3.5% contraction this with revenues growing 7% from
year. BLOOMBERG the year-ago. In the previous
quarter, outsourcing revenue
For more reports and analysis grew 5%. Note that Accenture’s
on the markets, follow our fiscal year ends in August.
Mark to Market podcast with Order inflows were strong,
Pallavi Pengonda and Aparna with new bookings rising 9% to
Iyer on htsmartcast.com $14 billion. The outsourcing seg-
ment drove order wins, which is
recent quarters. “Sustained
healthy momentum in outsour-
cing business revenue and book-
ing augurs well for Indian peers,”
Emkay Global Financial Services
Ltd said in a note.
The book-to-bill ratio is at 1.3
times, the highest in 25 quarters,
said Jefferies India Pvt. Ltd.
Book-to-bill is a ratio of new
orders to completed sales. A ratio
above one implies strong
demand. “We understand these
bookings could be lumpy, but
they still indicate demand is on
the path to normalization/recov-
ery,” Motilal Oswal Financial Ser-
vices Ltd said in a note.
Consulting Outsourcing New order bookings (in $ billion)
three years, and implies near- line with the guidance provided
15 term sluggishness. However, the by domestic IT majors. Domestic
12
company sees growth rebound- IT companies are indicating
ing from March 2021. heightened demand for digital
9
“Accenture’s guidance of 2-5% services, though some Indian
6 growth for FY21 is slower and is a firms had indicated a sharp
3 story of two halves with H1 recovery in H2FY21.
0 growth likely in the -3% to 0% However, the broad trajectory
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
range followed by high single is upward and investors may not
FY17 FY18 FY19 FY20
digit to low double-digit growth mind if, like Accenture’s gui-
Note: Accenture’s fiscal year ends in August. Source: Company, Jefferies India
in H2,” Nirmal Bang Institutional dance suggests, things pick up
SATISH KUMAR/MINT
Equities said in a note. “Among meaningfully next fiscal year.
New orders do not imply 3% or reach the year-ago levels the assumptions driving a H2 Valuations of Indian IT stocks are
immediate boost to revenues. (zero growth) at best in the cur- FY21 pick up (which coincides already reflecting much opti-
Moreover, economic disruptions rent quarter. with H1 FY22 of Indian players) mism, but the September quarter
because of covid-19 means that Further, Accenture expects its are a pickup in macro-economy, results of Indian IT firms will pro-
uncertainty persists. Accenture next fiscal year to be subdued as strategy and consulting making a vide clarity on the pace of recov-
warns that its revenues can fall well. The 2-5% revenue growth comeback, larger transformation ery.

Mark to Market writers do not have positions in the companies they have discussed here
MONDAY, 28 SEPTEMBER 2020
NEW DELHI 05
06 MONDAY, 28 SEPTEMBER 2020
NEW DELHI
Trump and
Biden set to
hold their
first debate
AFP
feedback@livemint.com
T P
he volatile US presiden-
tial election enters a
fierce new stage this week
when Donald Trump and Joe
Biden hold their first debate—a
television spectacle finally
allowing Americans to witness
the two antagonists head to
head.
Trump, lagging in the polls
and with a history of trying to
rattle debate opponents,
taunted Biden on Sunday with a
tweet launching a new salvo on
his mental acuity.
“I will be strongly demanding
a Drug Test of Sleepy Joe Biden
prior to, or after, the Debate on
Tuesday night,” Trump said.
“Naturally, I will agree to take
one also. His Debate perform-
ances have been record setting
UNEVEN, to put it mildly. Only
drugs could have caused this
discrepancy???”
There was no immediate
response from Biden to the
Sunday tweet.
He has shrugged off such
accusations from Trump in the
past. On Saturday said he
expects “personal attacks and
lies” from the president, like-
ning Trump to Nazi propa-
ganda chief Joseph Goebbels.
“Normally, that first debate is
the toughest for the incum-
bent,” said Aaron Kall, director
of debate at the University of
Michigan and co-author of
“Debating The Donald.”
The debate moderator, Fox
News host Chris Wallace, has
set topics ranging across the
Supreme Court, he pandemic
and economic disasters, racism
and the integrity of the election
itself. But whether Wallace can
keep the two men on topic
remains to be seen.
IT eyes 20-fold jump in demand for digital skills O2 Power, Ayana in fray to buy
Romita Majumdar
Spotting talent
romita.m@livemint.com
MUMBAI
I
ndustry body Nasscom will
equip more than 4 million
professionals with digital
skills over the next five years to
fill the demand-supply gap
across IT services.
The demand for digital skills
in India is eight times of what is
available and will rise to 20 times
by 2024. This can be met by
diversifying digital skills across
academia, said Sangeeta Gupta,
senior vice-president and chief
strategy officer, Nasscom, and
Amit Aggarwal, vice president
and chief executive, IT-ITeS
(information technology and
IT-enabled services) sector skills
council, Nasscom, in an inter-
view with Mint.
The IT industry body has con-
ducted a survey of the existing
talent pool and is working with
various stakeholders across the
industry, government, and aca-
demia to create a comprehen-
sive training programme to
close the demand-supply gap.
The digital talent pool within
IT-ITes consists of the talent
m MINT SHORTS
RBI ropes in Amitabh Bachchan for
customer awareness campaign
HT
US imposes restrictions on exports
to China’s top chipmaker SMIC
The US imposed export restrictions on Semiconductor Manufac-
turing International Corp. (SMIC), taking aim at another promi-
nent Chinese technology company and adding to tensions
between the two countries over the critical industry. US firms
Rising toll sparks big rush
to buy covid-19 insurance
In Apr-Aug, 6 mn people bought health policies for a sum assured of at least ₹2 tn
Anirudh Laskar
anirudh.l@livemint.com
MUMBAI
M
ounting covid-19
deaths are causing a
rush for insurance
cover, making
health policies
against the virus the highest sellers
in Indian insurance history,
according to figures made available
to Mint.
In the April-August period,
around 6 million people bought
covid-19 health insurance poli-
cies—Corona Rakshak and Corona
Kavach—for a total sum assured of
at least ₹2 trillion.
All other health products
together recorded less than a third
in sales at 1.78 million policies,
while their total sum assured was
less than half at ₹87,856 crore dur-
ing the same period, according to
industry estimates and regulatory The government’s efforts to educate the masses about covid-19 has boosted sales, say industry experts. REUTERS
records.
Covid-19 insurance recorded the id-19 will always find takers owing
highest ever sales, at the fastest ever to the simplicity of product design cate the masses about covid-19 has time. Every year, we typically see a
pace, for a health insurance prod- and affordability and flexibility boosted sales, and covid-19 prod- 15-30% growth, but this year we see
uct in these five months. The fig- associated with these products,” ucts conceptually have been a 70-80% growth in terms of
ures are multiple times higher than said Sanjay Datta, chief-underwrit- remarkable, which is why they are enquiries and customers showing
the total new retail sales of all ings, claims and reinsurance at gaining in popularity, said Datta.
health policies together in
any given full financial year
in the history of insurance.
According to data shared HEALTH policies
exclusively with Mint by a against the virus
have become the
large insurance firm, dur- highest sellers in
ing April 2018-March 2019, insurance history
fresh retail business of
health insurance saw 2.8
million policy sales for a total sum ICICI Lombard General Insurance
assured of ₹1.2 trillion. During fiscal Co. Ltd, the largest private-sector business at Policybazaar.com., said, could reach around 30 million and
2020, these numbers increased to insurer. “The fact that we are in the “The growth has been unprece- ₹10 trillion, respectively, in a year’s
3 million policy sales for a total sum midst of a pandemic also leads to an dented.”
assured of ₹1.35 trillion. element of panic buying, which
“Health insurance cover for cov- cannot be ignored.”
305MW solar assets of Azure
The demand for tech professionals is growing fast and the cost
of training them in new skills is lower in India.
Current employment across
India (FY20*)
5000000
4000000
3000000
2000000
1000000
0
Digital
talent pool
IT-BPM talent
pool
Future skills
talent pool
BPM: business process management
employed across artificial intel-
ligence (AI), big data analytics,
internet of things (IoT), cloud
computing, cyber security,
robotic process automation,
blockchain, augmented and
virtual reality (AR/VR), and 3D
printing.
“Around a fourth of the 4.3
million people employed by IT/
ITeS/BPO sectors are from
non-computer sciences back-
ground. Even in core software
technology companies, 10-15%
of the talent is employed from
Mumbai: The Reserve Bank
has roped in Amitabh Bachchan
for its customer awareness cam-
paign to prevent gullible
account holders from being
duped by fraudsters. On its
Twitter account called ‘RBI
Says’, Big B posted on Sunday:
“The cost of awareness is hardly
a penny, but ignorance can cost
you hard earned money.” PTI
CORPORATE
TOP ST RIES
Three farm bills get
President’s nod as
protests continue
Anuja & Gyan Varma
NEW DELHI
resident Ram Nath
Kovind on Sunday gave
assent to three controver-
sial farm bills passed in the
monsoon session of Parliament
amid growing protest by farm
organisations.
British PM Kovind’s nod to the Farmers’
Boris Johnson
hails India’s
Produce Trade and Commerce Opposition parties had urged
vaccine (Promotion and Facilitation) President Kovind to not give
efforts in his Bill, 2020, The Farmers his assent to the bills. HT
UN General (Empowerment and Protec-
Assembly
address
tion) Agreement of Price Assur- farmers, farm labour and farm
bit.ly/30bWoR ance and Farm Services Bill, produce traders”, he said.
s 2020, and The Essential Com- Opposition against the three
modities (Amendment) Bill farm bills have gained momen-
2020 came despite an appeal tum with regional parties such
by opposition parties and the as the Nationalist Congress
Shiromani Akali Dal (SAD), Party (NCP), Shiv Sena and
which left the ruling National theTrinamool Congress sup-
Democratic Alliance (NDA) on porting SAD’s move to quit the
Saturday, to the President to NDA. NCP chief Sharad Pawar
not give his assent to the bills. tweeted: “Congratulations to
These parties had urged the Shri Sukhbir Singh Badal Presi-
President to keep in mind con- dent of @Akali_Dal and MP
cerns raised by farm bodies, @HarsimratBadal who under
which have intensified their stir the leadership of Hon. Shri Pra-
in Punjab and Haryana. kash Singh Badal pulled out of
“Extremely sad that @rash- NDA in a protest to Farmers’
The government’s efforts to edu- something happening for the first trapatibhvn Bills. Thanks for
refused to heed SAD chief firmly standing
farmers and Pun- Sukhbir Badal with the Farm-
jabis’ cries and has reached out to all ers!”
signed FarmBills political Chhattisgarh
interest in buying health insurance. and J&K bill CM Bhupesh
stakeholders and Baghel on Sunday
That shows both the fear as excluding Punjabi
organizations
POPULAR CHOICE well as the awareness. In as official lan-
over the issue
said a resolution
the voluntary space, this guage. Hopes that opposing the bills
ALL other health IN fiscal 2019, IN fiscal 2020, these has certainly staged the President will act will be brought in
products together
recorded sales of
2.8 mn new health
policies were sold
numbers increased
to 3 mn policy sales
fastest growth among all as nation’s con- the next assembly
1.78 mn policies in for a total sum for a total sum products,” said Chhabra. science & return Bills to Parlia- session. Statewide protests are
the Apr-Aug period assured of ₹1.2 tn assured of ₹1.35 tn With the number of cov- ment dashed. Dark day for beginning to shape up on
id-19 cases still rising, the democracy and farmers,” SAD related issues. In Karnataka,
monthly growth in covid-19 president Sukhbir Singh Badal farm bodies have called for a
Amit Chhabra, head of health policy sales and the sum assured said on Twitter on Sunday. bandh on Monday against
Badal reached out to all polit- amendments to the agricultural
ical parties over the issue. All produce market committee and
time, according to the chairman political stakeholders and orga- land reforms Acts made by the
“The way it has driven the adop- and managing director of a large nisations should “close ranks state government.
tion of insurance among people is state-run general insurance firm. and protect the interests of anuja@livemint.com
advanced skills in social scien- 1.2-1.3 million future skills tal-
ces and economics, said Gupta. ent at the entry level.
“The IT industry itself needs The demand for technology
more people from across professionals is growing fast Utpal Bhaskar “O2 Power and Ayana are these assets now,” said the
Future demand in entry-level jobs
domains as companies in new and it requires around $20,000 utpal.b@livemint.com the final ones left, with the deal other person, also on condi-
Fresh talent supply
Estimated open positions
digital streams want to hire peo- to upskill or reskill each candi- NEW DELHI expected to be announced tion of anonymity.
ple with collaborative capacity. date globally. “The training shortly. The deal is expected to Mint had reported that
1000000
O
That is why technology usage cost is also much lower in India, 2 Power promoted by have an enterprise value EverSource Capital plans to
800000 needs to be taught across educa- which is why global firms will Singapore’s Temasek upwards of $200 million,” said buyout Azure’s entire 167MW
tional disciplines and, hence, we continue turning to India to and European alter- one of the two people men- solar rooftop portfolio, in what
600000 are working with NITI Aayog to groom such talent,” said Aggar- native asset manager EQT, and tioned above. may rank among the largest
400000
develop such initiatives across wal. Last week, Microsoft Ayana Renewable Power O2 Power is a $500-million solar rooftop deals in India.
schools, as joined hands with backed by CDC Group Plc, renewable energy platform, Nathan Judge, head of
200000 included in the The new skill Nasscom Future have emerged as the front- which is targeting investor rela-
New Education requirement is Skills to launch a runners to acquire 305-mega- around 4GW of The proposed tions, Azure
0
FY20* FY24** Policy,” she said. changing rapidly nationwide initia- watt (MW) of solar assets of solar and wind deal is valued at Power, chose not
Entry-level job and is leading tive that aims to NYSE-listed Azure Power assets in India. O2 around $200 mn to comment in an
*Estimate, **Projection Source: Nasscom
openings consti- skill 1 million stu- Global, said two people aware Power, which was and the sale e m a i l e d
SARVESH KUMAR SHARMA/MINT
tute 68-70% of the
to the gap in dents in AI by of the development, seeking founded by response.
demand and process is
high-level non-technology dis- total future skills 2021. anonymity. former ReNew Shivanand
ciplines. As we estimate the job openings. The supply of talent Employers and The proposed deal is valued Power executives being run by Nimbargi, MD
demand over the next five talent in these training providers at around $200 million. The Parag Sharma, Avendus Capital and CEO, Ayana
years, this multi-disciplinary roles are growing r e s k i l l e d sales process is being run by Peeyush Mohit, Renewable
requirement will only increase at a compound annual growth 180,000-200,000 digital skills Avendus Capital. Rakesh Garg, and Power, also chose
across sectors,” said Aggarwal. rate (CAGR) of 16-20%, while over 2019-20. Azure Power, which has a Nimish Agrwal, already has not to comment.
India has tapped into the first the demand for these roles is The overall fresh talent pool 7GW portfolio, is backed by 1GW capacity. Queries emailed to an O2
wave of IT demand effectively, growing at a CAGR of 19-23%. is very robust in India, but the International Finance Corp. Mint had earlier reported Power spokesperson late on
but the new skill requirement is Future skills talent growth will directly relevant talent supply (IFC), Canadian pension fund about PE investors KKR and Thursday evening remained
changing rapidly and leading to be impacted in the short-term as of FY20 is 45,000-50,000, Caisse de dépôt et placement Actis Plc in talks to acquire unanswered.
the gap in demand and supply because of covid-19. However, out of 8 million graduates du Québec (CDPQ), and Ger- these solar assets, with others An Avendus Capital spokes-
of talent, he said. as the economy recovers, across streams, which is man investment and develop- such as Ayana, O2, Brookfield person, in an emailed
A lot of the new require- growth is expected to rebound expected to grow to ment institution Deutsche and Edelweiss also having response, said: “As a matter of
ments in this space will also and reach 3.5-3.7 million in 57,000-63,000 by 2024, Investitions- und Entwick- shown interest in the same. policy, we do not comment on
stem from people with 2024. India at present employs according to Nasscom. lungsgesellschaft (DEG). “Actis isn’t interested in queries of this nature.”
CG Corp Global investing ₹120 cr to
must now apply for a licence to export certain products to China’s
largest chipmaker, the commerce department said in letter dated
25 September, reviewed by Bloomberg News. SMIC and its subsid-
iaries present “an unacceptable risk of diversion to a military end
NTPC invites biomass pellet
bids ahead of stubble burning enhance manufacturing capacity
New Delhi: CG Corp Global is BLOOMBERG
use,” the department’s Bureau of Industry and Security wrote. investing ₹120 crore to expand
BLOOMBERG the production capacity of its
FMCG vertical CG Foods in
India for catering the growing
Saudi Arabia sends blue ammonia demand for its Wai Wai noodles
in the next one year, a company
to Japan in world’s first shipment official said. After the proposed
The world’s first shipment of blue ammonia is on its way from investment, the production
Saudi Arabia to Japan, where it will be used in power stations to capacity of four plants of CG
produce electricity without carbon emissions. Saudi Aramco, Foods would increase by 35% the company said. PTI
which made the announcement Sunday, produced the fuel,
which it does by converting hydrocarbons into hydrogen and
then ammonia, and capturing the carbon dioxide byproduct. Karnataka unveils tourism policy
Japan will receive 40 tonnes of blue ammonia in the first ship- New Delhi: As part of India’s plan to contain pollution
REUTERS ment, Aramco said. Ammonia caused by stubble burning, state run NTPC Ltd has invited
aimed at ₹5,000-cr investment
can be burned in thermal power bids to procure biomass pellets as a fuel to generate elec- Bengaluru: Karnataka chief minister B.S. Yediyurappa on Sun-
stations without carbon emis- tricity at 17 of its projects, the country’ largest power gener- day unveiled the state’s new agriculture and rural-themed tour-
sions. That means it has “the ation utility said on Sunday. These pellets will be mixed ism policy that has set a target to attract ₹ 5,000 crore of invest-
potential to make a significant with coal as fuel to generate electricity. This development ments and create one million direct and indirect jobs over the
contribution to an affordable assumes significance given that NTPC runs one of the larg- next five years. The new policy also aims to increase the contribu-
and reliable low-carbon energy est global fleets of coal fuelled projects. UTPAL BHASKAR tion of the sector from 14.8% to 20% of the GSDP by 2025.
future,” according to state-con- Read more on livemint.com SHARAN POOVANNA
trolled Aramco. BLOOMBERG Read more on livemint.com
 CORPORATE MONDAY, 28 SEPTEMBER 2020
NEW DELHI 07
TOP ST RIES
‘Building infra via debt FinMin may provide capital to some
state-run lenders in third quarter
funds can revive India’ PTI
feedback@livemint.com
NEW DELHI

T
he finance ministry is likely to
Such an approach has a higher multiplier effect on growth, noted IMF provide capital support from
the ₹20,000 crore fund
approved by Parliament in recently
Asit Ranjan Mishra concluded session to some public sec-
asit.m@livemint.com tor banks (PSBs) in the third quarter
NEW DELHI itself.
Parliament approved ₹20,000

C
ountries such as India with crore for PSB capital infusion as part
limited fiscal space can rely on of the first batch of Supplementary
debt financing to boost public Roland Garros Demands for Grants for 2020-21
starts in
investment in the short-to- shadow of
which sought additional spending of The fund infusion would be for meeting regulatory capital requirements if the
medium term, to revive the coronavirus a record ₹2.35 trillion primarily to need arises in October-December quarter. MINT
covid pandemic-hit economy, the Interna- and meet expenses for combating the cov-
tional Monetary Fund (IMF) said in a ‘ridiculous’ id-19 pandemic. It is to be noted that the govern- Allahabad Bank received ₹2,153
cold
report. Such an approach has a higher mul- bit.ly/3j357wJ
The fund infusion would be for ment refrained from committing any crore, United Bank of India got ₹1,666
tiplier effect on growth than infrastructure meeting regulatory capital require- capital in the Budget 2020-21 for crore and Andhra Bank received
financed through tax, it said. ments if the need arises in October- PSBs, hoping that lenders will raise ₹200 crore. These three lenders have
IMF analysed infrastructure financing December quarter, officials said. funds from the market depending on been merged with various PSBs.
through growth-debt trade-off in emerg- The second quarter result will give the requirement. In 2019-20, the gov- Besides, Bank of Baroda got a capi-
ing and developing Asian countries, in the an idea as to which bank may require ernment infused ₹70,000 crore into tal infusion of ₹7,000 crore, Indian
report titled Well Spent: How Strong Infra- regulatory capital and accordingly PSBs to boost credit for a strong impe- Overseas Bank received ₹4,360 crore
structure Governance Can End Waste in recapitalization bonds would be tus to the economy. and UCO Bank got ₹2,142 crore. Pun-
Public Investment. India’s economy contracted 23.9% in the June quarter as a result of a double whammy of issued to them, people familiar with In the last financial year, Punjab jab & Sind Bank received ₹787 crore
India’s economy contracted 23.9% in the demand contraction and supply shock following the countrywide lockdown. HT the matter said. National Bank got ₹16,091 crore, and Central Bank of India got ₹3,353
June quarter as a result of a double Besides, PSBs already have share- Union Bank of India received ₹11,768 crore.
whammy of demand contraction and sup- ing boost can prevent increasing public erate more growth than income taxes. holders’ approval for raising capital crore while Canara Bank and Indian In addition, LIC-controlled IDBI
ply shock following the countrywide lock- debt, but the growth stimulus can be damp- While VAT financing would be a preferable through a mix of equity and bonds Bank got ₹6,571 crore and ₹2,534 Bank received additional capital of
down. The path to recovery has been slow ened by higher taxes on domestic demand option for policymakers for the long term, during the current fiscal. crore, respectively. ₹4,557 crore.
with a rapid rise in coronavirus cases. or labour supply,” they say. they would need to be mindful of its nega-
Most forecasters expect Asia’s third larg- The study undertaken for six Asian tive impact on income inequality, which
est economy to experience a double-digit economies, including India, Indonesia, can be dealt with by strengthening public
contraction in FY21 before making a sharp Philippines, Thailand, Vietnam, and Sri spending that brings relative strong bene-
recovery in FY22 because of a lower base. Lanka, looked at various scenarios of infra fits to the poor, such as education, health
The government has announced a fiscal financing and its impact on growth. care, and targeted social safety nets,” it says.
stimulus of 1.2% of GDP, but falling revenue The study concludes that in emerging The covid-19 pandemic and its economic
collections have limited its ability to com- and developing Asia, including India, fallout is still unfolding, and creating good
mit higher public expenditure for social financing an infrastructure spending boost infrastructure through strong infrastruc-
and physical infrastructure. with higher indirect taxes would be desira- ture governance is more important than
Policymakers who consider ever and key to supporting
building infrastructure stock AIDING RECOVERY economic recovery, says Kris-
need to look at potential mac- talina Georgieva, managing
ro-economic and fiscal conse- BOOSTING spends A tax-financed boost MOST forecasters director, IMF.
quences, the authors hold in on infra can raise
growth in the short
can prevent higher expect the Indian
debt, but the growth economy to face
“Across countries, discus-
the chapter titled ‘Boosting term by stimulating can be dampened by a double-digit sions on infrastructure, the
Infrastructure in Emerging overall demand: IMF higher taxes, it added contraction in FY21 what, why, where, and how
Asia’. “Boosting spending on much, are closely linked to the
infrastructure can raise sustainable development
growth in the short term by stimulating ble in the long term in view of a growth-debt goals, which call for significantly scaling up
aggregate demand. It can also shore up trade-off. However, in the short-to-me- infrastructure in areas such as health, water,
potential growth in the long term as better dium term, assuming a benign borrowing sanitation, energy, and transportation, as
infrastructure promotes the economy’s risk premium, the growth pickup would well as adapting and fostering resilience to
productivity. Nonetheless, the spending generally be higher with debt financing climate change. The economic recovery
boost can result in higher fiscal deficits and rather than tax financing. from the covid-19 pandemic will require
public debt if financed by borrowing, “Among tax options to finance the strong infrastructure governance to ensure
which can also crowd out private invest- spending boost, indirect taxes such as value that investment spending contributes to
ment. Alternatively, a tax-financed spend- added tax (VAT) are less distortive and gen- high-quality economic growth,” she says.

M.P. ROAD DEVELOPMENT CORPORATION LTD.

(M.P. State Highway Authority) (Govt. of M.P. Undertaking)
45-A, Arera Hills, Bhopal-462011, Ph. : 0755-2597290, 2765205
Fax : 0755-2572643, Website : mprdc.gov.in, CIN : U45203MP2004SGCO16758
NCB No. 6746/MPRDC/Procu/MPDRIISP/ARS/483/2020 Date : 25.09.2020
INVITATION OF NATIONAL COMPETITIVE BIDDING FOR PROCUREMENT OF WORKS UNDER
MADHYA PRADESH DISTRICT ROADS II SECTOR PROJECT (MPDRIISP)
M.P. Road Development Corporation Limited, a fully owned Company of Government of Madhya
Pradesh registered under Companies Act, 1956, invites Physical Bids for Procurement of the
following Works in the state of Madhya Pradesh under Madhya Pradesh District Roads II
Sector Project (MPDRIISP).
Pkg. Description of work Bid Security Completion Document
No. (INR Million) Period Cost (INR)
ARS Enhancing capabilities of Existing Accident 3.00 3 Years 30,000/-
Response System and Traffic Management
Centre of MPRDC in Madhya Pradesh
The dates for purchase, submission, etc. are mentioned in the key dates, Detailed Invitation
and Bidding Documents are available on the website www.mprdc.gov.in.
MPRDC reserves the right to accept/reject any/all tenders without assigning any reason
thereof.
M.P. Madhyam/98590/2020 MANAGING DIRECTOR
08 MONDAY, 28 SEPTEMBER 2020
NEW DELHI CORPORATE
TOP ST RIES
Farmers form the basis of Jaswant Singh, key
BJP face during
self-reliant India, says PM Vajpayee era, dies
REUTERS
Gyan Varma
gyan.v@livemint.com
They will benefit from the power to sell crops to anyone and anywhere in India: Modi NEW DELHI

J
Access to formal credit is a key aswant Singh, former
challenge for small biz. MINT
Gyan Varma Union minister and a
gyan.v@livemint.com founding member of the
MSMEs can NEW DELHI Bharatiya Janata Party
(BJP), passed away on Sunday

P
rime Minister Narendra after a prolonged illness.
formalize Modi on Sunday said
farmers and the agricul-
Odisha to
reopen all
tourist
The 82-year-old leader had a
political career that lasted for

ops well via tural sector were the

foundations of a self-reli-
ant India and that the country
destinations
from October
bit.ly/30tELwP
more than three decades in
which he held several posi-
tions, including Union minister
neobanks’ would progress only when the rural
economy and farmers were
for defence and external affairs. Jaswant Singh held cordial ties
Singh, who was a member of with lawmakers across parties.
strengthened. the Bharatiya Jana Sangh,
aid: report Delivering his monthly Mann Ki
Baat radio address, Modi said trans-
joined parliamentary politics in village of Barmer district in
1980 when he was elected to Rajasthan in 1938. Educated at
formative changes are being the Rajya Sabha, of which he Mayo College in Ajmer, he
Shreya Nandi brought about in agriculture. He was a member five times. Dur- joined the Indian Army after
shreya.n@livemint.com said people who are rooted to the ing his years in Parliament, he passing out from the National
ground can face any difficulty or also represented Darjeeling Defence Academy. His son,

D
igital-only banks, or
neobanks, have the
potential to meet the
financing needs of small busi-
nesses and help digitize and
formalize their operations,
according to a Vidhi Centre for
Legal Policy report.
Access to formal credit has
been a key challenge for India’s
micro, small, and medium
enterprises (MSMEs), which
employ about 111 million peo-
ple. Digital banks can support
underserved market segments
as access to credit from tradi-
tional banks have been limited
due to the informal nature of
businesses, low turnover, and
inability to provide collateral.
“One common customer
segment that seems to have
gained popularity with such
digital-only banking models
(both in India and globally) is
the MSME segment. Through
their technology focused oper-
ations, these banks are able to
offer a range of services to meet
the varied banking and busi-
ness needs of such establish-
ments,” the report said.
India’s neobanking sector is
at a nascent stage and at present
there are 17 neo-banking plat-
forms, including Niyo, Razor-
payX, Instantpay, Jupiter, and
Nupay, the Vidhi report said.
Digital-only banking functions
as a partnership between a
licensed bank and fintech com-
panies, as Indian laws do not
allow digital banks. The non-
banks provide the tech plat-
form through which banking
and value-added services,
including opening and operat-
ing savings or current accounts
with licensed banks, applying
challenge and that farmers are an and West Bengal in the Lok Manvendra Singh, is a former
example of people who have per- Sabha, and had represented the member of parliament from
formed their duties even during the Lower House four times. Barmer.
coronavirus pandemic. He was known to be close to Some other key portfolios
His comments come amid a con- both former Prime Minister that Singh held during Vaj-
tinuing farmers’ and Opposition Atal Bihari Vajpayee and senior payee’s tenure include those of
stir against recent legislation intro- Delivering his Mann Ki Baat address, Modi said transformative changes are being brought about in agriculture. PTI leader L.K. Advani, and was a electronics and surface trans-
ducing market reforms in the agri- key leader of the BJP during the port. He was last elected to the
cultural sector and a walkout by the build an Aatmanirbhar Bharat now. but also for rice, wheat, mustard also increasing because all political tenure of the Lok Sabha in
Shiromani Akali Dal (SAD) from the It would have happened much ear- seeds, sugarcane which can now be parties in Punjab have opposed the National Demo- Singh’s career 2009.
ruling National Democratic Alli- lier. The power to sell their agricul- sold by farmers wherever they are bills passed in the recent monsoon cratic Alliance spanned over As a parliamen-
ance (NDA). tural produce anywhere and to any- getting more price and they are free session of Parliament. under Vajpayee three decades in t a rian with
“Our agricultural sector, farmers, one in the country became the rea- to sell their produce,” added Modi. The mention of farmers and agri- between 1998 and which he held diverse experi-
our villages are the basis of Atman- son for the growth of farmers,” said The Union government is facing cultural sector in the radio pro- 2004. “Jaswant ence, Singh had
several portfolios, cordial relations
irbhar Bharat (self-reliant India). the Prime Minister. tremendous pressure from farm- gramme and Modi’s decision reach Singh ji will be
Only if they are strengthened will Modi said farmers had benefitted ers, especially in the grain produc- out to farmers is the second such remembered for including external with lawmakers
the foundation of self- reliant India when in 2014, fruits and vegetables ing northern states of Punjab, Har- move in the last three days where his unique per- affairs, defence across political
be strong. In the past few years, this were brought out of the APMC Act. yana and western Uttar Pradesh, the Union government has tried to spective on mat- parties.
sector has freed itself from tell farmers that the deci- ters of politics and In the Rajya
various difficulties and bro- REACHING OUT sions taken by the BJP gov- society. He also contributed to Sabha, Singh went on to serve
ken several myths,” Modi ernment are in favour of the strengthening of the BJP. I as leader of the House, as well as
said. FARMERS are an MODI said farmers HIS comments come THE problem for the farmers. will always remember our leader of Opposition after the
Modi further said that example of people benefitted in 2014
who have performed when vegetables,
amid a continuing
farmers, Opposition
BJP is also increasing
because all political
“It is said that people who interactions. Condolences to BJP lost power in 2004, and
the economic philosophies duties even during fruits were brought stir against recently parties in Punjab are rooted to the ground his family and supporters. Om remained the senior-most
of Mahatma Gandhi had pandemic, said Modi out of the APMC Act passed farm bills have opposed bills can face any difficulty in Shanti,” tweeted PM Narendra leader of the party in the Upper
focussed on building a self- life. Even during the diffi- Modi. House till 2009.
reliant India. He added that cult time of coronavirus, “Deeply pained by the pass- He was part of several parlia-
farmers have benefitted from the He noted that farmers used to face where farmers have been protest- the agricultural sector and farmers ing away of veteran BJP leader, mentary committees, chairing
decision to take reform measures in a lot of difficulties earlier because ing for the past two days. are an example. Even during such Shri Jaswant Singh ji. He served some of them, including the
the agriculture sector and they now they were unable to sell their pro- The decision of SAD to quit the difficult times, we have witnessed the nation in several capacities ones on estimates, energy, and
have the power to sell their crops to duce of vegetables and fruits out- ruling alliance comes days after its the strength of the agricultural including the charge of raksha environment and forests.
anyone and anywhere they get side APMC (Agricultural Produce leader Harsimrat Kaur Badal community,” Modi said. mantri. He distinguished him- He was also the vice-presi-
higher price of their produce. Market Committee). resigned from union council of On Friday Modi asked BJP work- self as an effective minister and dential candidate of the NDA in
“Had we followed the essence of “Now farmers can sell their pro- ministers to protest against the ers to reach out to villages and parliamentarian,” tweeted 2012 when he lost the election
Bapu’s economic philosophy, we duce according their wishes. It is recently farm bills. The problem for farmers and explain the benefits of defence minister Rajnath to Hamid Ansari.
would never have to be working to not only for fruits and vegetables the Bharatiya Janata Party (BJP) is the reform measures. Singh. Singh was born in Jasol Anuja contributed to the story
As SAD quits NDA, BJP looks to increase its electoral and social base
Gyan Varma parties standing together, nor V.P. Singh Badnore the alliance partners, SAD and tives, agitation or lockdowns
gyan.v@livemint.com including the Congress, which same day. Senior party leaders Shiv Sena, and the only big announced by farmers in the
NEW DELHI is in power in Punjab. said the decision to oppose the political party which is in alli- coming days, regardless of
BJP leaders also argued that farm bills was taken after ance with BJP across north which organization or party

for loans, generating invoices,
accounting, and ensuring com-
pliance with goods and services
tax norms, are accessed. Such
platforms typically target mil-
lennials, startups and MSMEs.
However, in countries such
as South Korea, China, and the
UK, digital-only banks are
licensed to provide all banking
services.
“Licensed digital banks that
allow end-to-end banking
operations to take place have
emerged in certain jurisdic-
tions. The digital-only banking
model may play an important
role in providing critical bank-
ing services and contributing to
the growth of a robust and
competitive banking sector,”
the report noted.
T
he decision of the Shiro-
mani Akali Dal (SAD) to
walk out of the ruling
National Democratic Alliance
(NDA) is likely to give the
Bharatiya Janata Party (BJP)
an opportunity to expand its
base both socially and elector-
ally in Punjab.
On Saturday, the SAD
announced its decision to quit
the NDA, ending a nearly
three-decade-long alliance, 10
days after its senior leader
Harsimrat Kaur Badal stepped
down as a Union minister to
protest against the recently
passed farm bills.
Senior BJP leaders said the
party has the unique opportu-
nity to directly reach out to
farmers despite all political
it is after almost three decades
that the party will be able to
build its own social and elect-
oral base in the state.
SAD joined the NDA in 1996
when BJP leader Atal Bihari
Vajpayee became the prime
minister during the alliance’s
first government at the Centre,
which lasted 13 days.
“We believe the agricultural
reforms undertaken by Prime
Minister Narendra Modi
would benefit small farmers
the most. SAD leaders are not
working for the benefit of
farmers and are only strength-
ening the Opposition against
the BJP,” said a senior party
leader and parliamentarian.
“The Shiromani Akali Dal
core committee decides unan-
SAD leaders led by Sukhbir Singh Badal extended support to all
initiatives, agitation or lockdowns announced by farmers.
imously to pull out of the BJP-
led NDA because of the Cen-
tre’s stubborn refusal to give
statutory legislative guaran-
tees to protect assured mar-
keting of crops on the mini-
mum support price (MSP) and
its continued insensitivity to
Punjabi and Sikh issues,”
PTI
tweeted the SAD chief Sukhbir
Singh Badal late on Saturday
night.
SAD leaders have also
decided to formally join the
protests against the farm bills.
The party has decided to pro-
test in all the regions of Punjab
on 1 October and meet gover-
deliberations with the core India is the Janata Dal (United) starts it.
committee. or JD(U) under Bihar chief “Punjabis must remain
The Union government is minister Nitish Kumar. aware of some parties’ con-
not reaching out to farmers “Shiv Sena appreciates Akali spiracies to divide the farmers’
despite protests in Punjab and Dal’s decision to movement. Akali
Haryana, which could gather break its ties with The end of the Dal is not just a
momentum in the coming NDA in the inter- alliance presents political party but
days, senior party leaders said. est of farmers. the party with the a movement for
“If pain and protests of three Shiv Sena and opportunity to justice to all
crore Punjabis fail to melt the SAD were the pil-
directly reach out d o w n t r o d d e n
rigid stance of GoI, it’s no lars of NDA but people, especially
longer the #NDA envisioned now Akali Dal is to farmers, say those belonging
by Vajpayee ji and Badal sahab. out of NDA. NDA BJP leaders to the farming
An alliance that turns a deaf has new partners. community.
ear to its oldest ally and a blind I don’t think the Every Akali is a
eye to pleas of those who feed alliance without Akali Dal and farmer and every farmer is an
the nation is no longer in the Shiv Sena can be called NDA,” Akali at heart so farmer fami-
interest of Punjab,” Harsimrat said senior Shiv Sena leader lies have always taken pride in
Kaur Badal also tweeted on Sanjay Raut. being associated with it,”
Saturday. SAD leaders also expressed tweeted Sukhbir Singh Badal,
In the last 10 months, the solidarity with the farmers and SAD president and Ferozpur
BJP has lost two of its oldest extended support to all initia- member of the Lok Sabha.

₹19,444 cr sanctioned to 3 states

m MINT SHORTS the city’s Kempegowda International Airport. The MoU was
exchanged virtually between Sultan bin Sulayem, chairman of
Virgin Hyperloop and DP World, and T.M. Vijay Bhaskar, chief
secretary, government of Karnataka and chairman of the board
Former Union minister Uma
Bharti tests covid-19 positive
MINT
for paddy procurement at MSP
New Delhi: The National
MINT

Container cargo handling at ports
drops about 25% in April-Aug: IPA
MINT New Delhi: Container cargo
handling at India’s major ports
fell about 25% during April-Au-
gust amid the covid-19 pan-
demic, according to ports body
IPA data. Container cargo in
terms of TEUs at 12 key ports
dropped 25% to 3.25 million in
the April-August period of the
fiscal, Indian Ports’ Association
data shows. PTI
BIAL , Virgin Hyperloop sign MoU
to study viable hyperloop corridor
Bengaluru: Bangalore International Airport Limited (BIAL) and
Virgin Hyperloop, that claims to be a category leader in hyper-
loop technology on Sunday said they have signed an MoU to con-
duct a feasibility study for a proposed Hyperloop corridor from
of directors at BIAL, a release said. PTI Cooperative Development Cor-
poration (NCDC) has sanc-
tioned ₹19,444 crore as the first
TikTok calls Trump ban ‘irrational’ instalment to Haryana, Telan-
gana and Chhattisgarh for car-
amid ongoing deal talks with US rying out kharif paddy procure-
A lawyer for TikTok told a federal judge that President Donald ment operation at the mini-
Trump’s impending ban on the video-sharing app is “irrational” mum support price (MSP). The
given that its Chinese owner is in talks to strike a deal the presi- timely step will help the state
dent himself has demanded. “How does it make sense to impose agencies start procurement operations immediately, an official
this app-store ban tonight when there are negotiations under way statement said. NCDC is the apex financing organization of Union
that might make it unnecessary?” attorney John Hall asked at an agriculture ministry. PTI
unusual Sunday morning hearing on TikTok’s request to tempo-
rarily block the ban. The prohibition, set to begin at 11:59 pm Dehradun: Former Union minister and senior BJP leader
BLOOMBERG Eastern Time, would remove Uma Bharti has said that she has tested positive for covid-19 96% candidates appear for JEE-
TikTok from the app stores run and has quarantined herself. She requested people who
by Apple Inc. and Google’s came in her contact to get themselves tested and follow
Advanced with covid precautions
Android. People who don’t yet protocols. Taking to Twitter, Bharti on Saturday night said New Delhi: At least 96% of the candidates, who had registered
have the app wouldn’t be able to that she had taken a covid-19 test as she was suffering from for JEE-Advanced, appeared for the examination on Sunday
get it. Those who already have it fever, and the report came positive. She has quarantined amid strict precautions in view of the covid-19 pandemic, accord-
wouldn’t have access to updates herself at a place between Haridwar and Rishikesh in Uttar- ing to the Indian Institute of Technology (IIT)-Delhi, which con-
needed to ensure its safe and akhand. PTI ducted the exam. A total of 160,000 candidates had registered for
smooth operation. BLOOMBERG the Joint Entrance Examination (JEE)-Advanced. PTI
 PERSONAL FINANCE MONDAY, 28 SEPTEMBER 2020
NEW DELHI 09
TOP ST RIES
‘Labour reform will create jobs, C A P I TA L
C A LC U LU S

but wage premium will get hit’

A N I L PA D M A N A B H A N

Read Anil Padmanabhan’s earlier columns at

livemint.com/capitalcalculus

Prashant K. Nanda
prashant.n@livemint.com
NEW DELHI
organized sector. The positive, however, is mum wage.
that it seeks to include informal workers While minimum wage shall empower
the economy and jobs. Is it not?
Government’s justification of hire and
and inter-state migrants, platform workers, low-paid workers, but for others it reduces fire and diluting standing order from 100 to
KARMA OF GROWING
etc. What the government needs now is actual wage, which is premium wage.
give clarity whether this covers
300 is that small enterprises which are on
the margin of 80-plus workers, DIVIDE BETWEEN
T
he recent labour reforms will agriculture wage workers (not talk- RAMESH PATHANIA/MINT must grow and laws are restricting Railways

help in job creation, but they will ing about farmers), beedi workers
not be decent jobs, instead the and domestic workers. This code,
wage premium will be a victim, also, does not talk about registration
that due to its 100 threshold. In
2017-18, at least 71.31% of factories
in Andhra Pradesh deployed less
generates
over 1 mn
mandays of
work under
CENTRE AND STATES
says K.R. Shyam Sundar, a labour and provision of a portable social than 20 people, in Jharkhand it was Garib Kalyan
Rojgar
economist and professor at XLRI-Xavier security card. 53%, in Odisha it was 63.5% and in Abhiyan
School of Management. In an interview, The issue is of formal identity Telangana 67%. bit.ly/3jkiYPa
Sundar said while labour reforms will cards, wherein all workers must be I am talking about them because
attract investments and aid industrial given a unique labour market iden- they are new growth centres. Let’s
growth, it should not be seen as a panacea tity number, and it should be men- take the percentage of factories
for all problems. He argued that the new tioned in the worker’s identity card, deploying between 20 and 99
reforms have given employers the unilat- along with the company identity workers. In Andhra it is 5.4%,
eral power to determine terms and condi- number. Assam 17%, Gujarat 11.42%, Madhya
tions of service, and this will hamper wage The registration of such cards for Pradesh 12%, Maharashtra 15.62%,
growth. Poor income growth hampers pov- all workers should be done by the

‘
erty alleviation, he said. However, Sundar Centre, and states should do the The unilateral power to fix terms
lauded the expansion of social security and delegated responsibility, else social and conditions of employment
‘ Rajasthan 11.66% and Tamil Nadu
12%. So, how do one believe that
only labour reforms and flexibility
The upcoming GST meet may acknowledge the split within the
Council. PIB

I
universalization of formal employment security card by one state may not in hiring and firing will help them n little over a week from now the goods and services tax (GST)
contract among regular wage earners. be acceptable by another. Link by employers will impact wage grow and create more jobs. Council, which oversees the implementation of the indirect tax,
Edited excerpts: them with Aadhaar, bank account, bargaining. Are we moving towards making will meet. From the build-up it is clear that the simmering ten-
The labour codes have made provision PDS (public distribution system), labour market a freelancers’ sions will spill over and the meeting would formally acknowledge
for universalization of etc., with workers’ K.R. Shyam Sundar market because of over-promo- the split within the Council; cement the transition from consensus
formal employment
contract. What will
mint other details for a Labour economist and professor, XLRI-Xavier School
labour market cit- of Management
tion of fixed-term and contract
employments?
to a partisan stance—with issues now on to be decided by a vote.
It is not the first time, and neither will it be the last time that the
this change? CONVERSATION izenship card. Fixed-term employment is not Centre and states have differed. It is the nature of federalism in a
It now requires K.R. SHYAM SUNDAR But voluntary contri- In the absence of a standing order, pre- bad, but it has to be defined in terms of ten- democracy: national goals may not align with local priorities of
employer to offer a for- bution-led social pro- mium wage command will suffer. ure and minimum threshold, let’s say, for states. The trick is to manage these frictions without a serious fis-
mal written employment contract or tection for informal workers suffers But will jobs be created due to a better three months minimum to let’s say two sure—like the one we are witnessing in the GST Council. And, for
appointment letter detailing the terms of from multiplicity, and has failed to business environment? years. Also, can there be a cap on renewals. this, the onus is on the Centre; it is after all the anchor of the federa-
contract. It will have three benefits: achieve result, isn’t it? Yes, it will create more jobs, but poor Else, it will become not seasonal, but regu- tion—the first among equals. The problem is that the widening of
employment identity, assertion by workers Voluntary contribution schemes must be quality jobs. Low wage, contractual work lar in nature. It defeats the purpose. While the divide comes at an inopportune moment. And the karma of this
of rights under the law, and provide clarity rationalized, and provided for with legisla- and fixed-term work will prevail and, wage the bigger companies will go for it, smaller trust deficit can be exacting.
on the terms and condition of employment. tive backing, not through executive orders. premium will be a victim. The unilateral firms will opt more for contract workers Already tempers are frayed dealing with the once-in-a-century
It also reflects legislative poverty of the last Social security has two components – social power to determine terms and conditions and control their employee cost, including pandemic; lockdowns have plunged the economy into an unprece-
70 years, wherein a very basic requirement protection and social insurance. While one of employment by employers will impact avoidance of gratuity. dented slide, leading to evaporation of tax revenues—the fiscal
was not provided for. The NDA (National is contributory, the other is tax and state-fi- wage bargaining irrespective of employees’ squeeze is only further testing the states. At the same time, the
Democratic Alliance) government has nanced. Government must make the con- efficiency. Income stagnation and low wage Union government has embarked on the long-overdue second-
made provision for it now, at least for regu- tributory protection very transparent and hamper poverty alleviation. generation reforms (something that has been promised and dis-
lar wage workers. That way, it’s historic. In defined, which will incentivise people to The ease of doing business moves will cussed to death by previous regimes but never delivered).
2012-13, a little over 50% did not have for- contribute. attract investment, there will be growth in Over the last few weeks, it has set in motion a fundamental reset
mal written employment contract, and the The platform and gig economy in firms, but workers may not benefit pro- in the existing paradigm for education, harvest, sale and storage of
2017-18 official data shows, 71.1% of the reg- India is still nascent and the players portionately. You will gradually see agriculture produce, the public distribution system and the
ular-wage, salaried workers in the non-ag- there are saying, the government’s more automation and substitution of bureaucracy. All these subjects also fall
riculture wage space, did not have written move on social security will burden workers with machines, which is not Not keeping under the purview of the states. Keep-
formal employment contracts. them financially. What is your view? a best case for a labour-surplus states in good ing them in good humour is a prudent
But there are issues here: the occupa- Yes, these companies are young and and barely middle-income econ- idea; without their signing on, these
tional safety and health code (OSH Code) what they are saying makes economic omy like India. humour may much-needed reforms will be as good as
MINT sense, too. There is some- As per law, in a work space, nix Centre’s dead in the water—defeating the very
thing called social security either employees or employer structural purpose of such structural reforms to
credits. In the first three or cannot act arbitrarily. The increase reforms plan bring about a transformation of the
five years, the government of from 100 to 300 in the standing Indian economy.
can give social security order provision means it will Have said this before. In politics, it is
credit, which will be remove 90% of the factories from rarely about what you are doing. Instead, it is about what you are
notional, and can be recov- its purview, and disempower 40% of seen to be doing. Perception matters, especially in the age of social
ered once the time frame is factory workers. Government data media. Take, for instance, the Centre’s move last week to partially
over and companies tells us that more than 90% factories link additional borrowing with the roll-out of reforms. It is a well-in-
mature. While gig and plat- employ less than 10 workers tended idea. Yet there is a high probability that the idea will backfire,
form workers can contrib- So the argument is by allowing flexibil- given the prevailing circumstances. Five states—Andhra Pradesh,
ute, enterprises below a ity in standing order, firing limit, com- Telangana, Karnataka, Goa and Tripura—became the first batch to
certain capital limit can be pliance reduction, the codes shall help be extended this facility (bit.ly/2S2JXmt); wherein a portion of the
given a notional credit and firms not to remain dwarfs. additional borrowing is linked to their committing to undertaking

‘
Government must clarify
whether the social security code While the codes are
covers agriculture wage workers doing business, will it
‘ recovered after the incuba- Thus, create value for
tion period.

expected to boost ease of

economic reforms, including the implementation of ‘One Nation,
One Ration Card’. It is bound to cause heartburn among other states,
all of whom are desperate for additional resources. Yes, these five
states may be accused of breaking the collective, but the larger spin
in the narrative will be about the ‘big brother’ attitude of the Union
and domestic workers. increase employment government—parallels may be drawn to the World Bank and the
generation and offer International Monetary Fund, who often link fiscal bailouts to
decent jobs and wages? unpopular conditions, binding countries to undertaking economic
does not provide for a cure if an employer There is a trade-off between employ- reforms. It will only lend more weight to the argument by critics that
does not offer a formal written contract. ment security and wage security. A classic the Centre is pursuing ‘coercive federalism’ while espousing the
There is no corresponding penalty for vio- argument is employment security comes cause of ‘cooperative federalism’.
lating firms on this. They should have been with low wage. Labour reforms by allowing At the same time, this package in question also raises some fun-
in Industrial Relation Code instead of OSH hire and fire threshold, reduces trade union damental questions. There is nothing in the press note to suggest
code, so that the grievance redressal com- conflict and create jobs, but will impact there is a monitoring mechanism in place. Nor is there a prescribed
mittee could have addressed even if there wage. Because, the employer now will penalty on states for reneging on their commitment, if the case may
was no trade union. enjoy unilateral power to determine terms arise. In short, it is just a statement of intent. Begging the obvious
There is a clear articulation of inten- and conditions of service in establishments question that does this even warrant a try and, worse, risk an
tion to universalize social security, but deploying less than 300 employees. already difficult relationship with states.
do you see an execution plan? Where is Because the standing order does not apply It is clear then that the Centre and states are on a much-avoided
the fund and defined goal? to them. collision course. It is a confrontation in which there can never be
Overall, the social security code is a posi- This extension of threshold will have a winner. Worse, there will be one loser: India.
tive one, but I find a few issues in it. The three consequences: a) unionization Anil Padmanabhan is managing editor of Mint. Comments are
existing thresholds for EPF (employees’ will be tough as most workers will be welcome at anil.p@livemint.com
provident fund) and ESI (employees’ state either contracts or fixed-term
insurance) have been retained, but by alter- employment, b) in the absence of
ing the definition of factories and increas- standing order, there won’t be For more on the intersection of politics and
ing the threshold of workers from 10 to 20 homogenous working condition or economics, listen to Mint’s Capital Calculus
and, in some cases, 20 to 40, it won’t working terms within the same orga- podcast with Anil Padmanabhan on
expand social security cover in existing nization, and c) adherence of mini- HTSmartcast.
RAMESH PATHANIA/MINT

Remembering the individual behind renowned economist Isher Judge Ahluwalia

Bibek Debroy phy, Backstage. and is eventually relegated to So vast was Isher’s network large crowd. Having recently Isher. That kind of blending and
feedback@livemint.com All of us are destined to die. bibliographies in academic and so pervasive her charm, that resigned from Rajiv Gandhi resonance does occur between
But how do you react when that papers, unless you happen to be she personally knew every Institute, I felt a slight awkward- husband and wife, but not inva-

W
hen I first read her certain destiny is a short dis- (post Nobel vintage) a Paul Sam- economist you might name, in ness and strain. If the tension, riably. My abiding memory will
work, I used to think tance away? How do you react uelson, Kenneth Arrow or Mil- India and abroad. real or imagined, was eased, it remain that of Isher’s charm and
someone in Isher when death is not sudden, but ton Friedman. Isher’s abiding Now that the inevitable has was because of Isher’s welcom- grace, aging gracefully even
Judge Ahluwalia’s lineage had makes you wait, as cancer does? legacy, unless successors make happened, I have non-profes- ing words and smile. before the illness struck. Eco-
been a Judge. That reflected my It is not easy to handle that with a hash of it, is the building of the sional memories to treasure. I When Montek’s book was nomics is a profession and tran-
ignorance about Sikh sur- grace and dignity. Isher did just institution known as ICRIER or forget what the occasion was: launched (by then her malady scending the profession, there is
names. “My fam- that and was the the Indian Council for Research Montek was speaking and was was known), Isher requested me the individual. This comes
ily name ‘Judge’, driving force, the on International Economic seated on the dais. Isher was to be a panellist. Agreeing to across partially in the two mem-
which I retained m OBITUARY will and the deter- Relations (as director and chair- seated in the first row. My wife speak at that event was like oirs, in Isher’s more than in
as my middle mination behind person), at a time when older and I were in the audience. being thrown into a den of lions. Montek’s.
name after mar- both books being research institutions had gone Some inconvenient question The one to ask being Isher, it No doubt Montek, Aman and
riage, has nothing to do with a published. into relative decline. had been asked. After the event was impossible to refuse. Pavan and ICRIER will do
legal or judicial lineage. It is sim- Now that a noted economist Other economist couples Isher’s network and charm were so pervasive that she personally was over, my wife remarked, It was the first time I met her things in her memory. But those
ply an Anglicization of the Pun- and a Padma Bhushan awardee have existed, but none as pow- knew every economist in India and abroad. MINT “Did you notice Montek glance after cancer struck and the dete- will probably be about Isher as
jabi name ‘Jaj’.” That quote is has left, what will we remember erful and influential as Isher and at Isher when the question was rioration was evident. Irrespec- an economist and head of
from her recently-published her for? Her work on industrial Montek. I named Isher first, remain outside government, years—and their proximity to asked? Only happens between a tive of their own individual pro- ICRIER. I will also remember
autobiography, Breaking growth and productivity and because despite Montek being because Montek was already in Dr Manmohan Singh was no husband and wife.” fessional contributions—and the individual.
Through, published almost urban infrastructure? the person he was, Isher was government and she didn’t secret—they featured in every During the UPA years, they they are significant, including in Bibek Debroy is chairman,
back-to-back with Montek For all economists, that kind never eclipsed. (Early on in her want a rank inferior to his.) power list that any newspaper had invited us to a reception at influencing policy—it is impos- Economic Advisory Council to the
Singh Ahluwalia’s autobiogra- of work has limited shelf-life career, she consciously chose to Especially during the UPA or magazine brought out. their house, where there was a sible to think of Montek without Prime Minister.
10 MONDAY, 28 SEPTEMBER 2020
NEW DELHI PERSONAL FINANCE
TOP ST RIES
India is far from achieving herd Lower private GCF agriculture as a % of

participation Agri GVA

Industry GVA
Services GVA

Private investment in (in %)

60
India's agriculture

immunity for covid, says govt

sector has been 50
constrained due to 39.4
40 37.4
various agri-marketing
35.5
and regulatory 30
32.8
restrictions.
20
GCF: Gross capital formation 13.7
GVA: Gross value added 10 15.5
Source: JM Financial 0
Union health minister Harsh Vardhan urges people to keep following covid-19-appropriate behaviour Institutional Securities Ltd FY02 FY18

SARVESH KUMAR SHARMA/MINT

Neetu Chandra Sharma

neetu.s@livemint.com
MAHARASHTRA TOLL
CROSSES 35,000
The number or covid-19 cases
continued to increase in India.
Hungry for growth
NEW DELHI

INDIA
According to the health ministry,
88,600 new cases were reported in earnings, market
I
ndia is far from achieving herd in the last 24 hours in India, with
immunity for covid-19, Union 10 states and UTs accounting for Leaders to UN:

minister Harsh Vardhan said

on Sunday during an interac-
tion on social media. The min-
6,041,811 94,973
Total cases Deaths
77% of them.
Maharashtra continued to lead
the tally, accounting for more than
If Covid-19
doesn’t kill us,
climate
change will
shrugs farm reform
ister’s comments came on a day 4,981,273 965,565 20,000 new cases, followed by bit.ly/3mTFgJX
Recovered Active cases
when coronavirus cases in India Karnataka and Andhra Pradesh FROM PAGE 1 market was quick to respond.
crossed the 6 million-mark with with more than 8,000 and 7,000 But while the stock market
nearly 95,000 fatalities. GLOBAL cases, respectively. concern. “We believe the new has reacted to the passage of
“The soon-to-be-released sec- “There have been 1,124 deaths laws liberalize agri trade and agricultural bills with a yawn,
ond sero survey indications are in the past 24 hours. Ten states are a step in the right direction. things could change if a large
that we are far from having
32,886,465 and UTs account for 84% of the If implemented well, we company such as Reliance
Total cases
achieved any kind of herd immu- deaths in the last 24 hours due to believe it can potentially Industries makes a big move in
nity, which necessitates that all of covid-19. Of the new deaths, increase much-needed invest- the space, says analysts.
us should continue following cov-
994,940 Maharashtra reported more than ment in the agri supply chain,” “Talking about reforms, the
Deaths
id-19 appropriate behaviour,” said 38% of the deaths with 430 fatali- analysts at Jefferies said in a 24 agriculture reform could prove
Vardhan. The first sero survey in 22,759,961 9,131,564 ties followed by Karnataka and September note. to be a game-changer in the
May revealed that the nationwide Recovered Active cases Tamil Nadu with 86 and 85 deaths, Another point to note is that long run. It has opened up busi-
prevalence of the novel coronavi- Source: Union health ministry, states
respectively,” the government even after implementation, it ness opportunities in terms of
rus infection was only 0.73%. A medical worker plays with a child at a quarantine facility in Delhi. REUTERS said in a statement. would take some years to yield contract farming and collective
Following emerging evidence However, 92,043 new recover- the desired results. But the leasing of agricultural land,
that the disease not only impacts health minister. these investigational therapies, he the prices of covid-19 diagnostic ies were reported in the last 24 stock market likes instant out- among others. If capitalized
the lungs but also other organs, Regarding the investigational said. Doctors in states and Union tests. “In the early days of the pan- hours in India, with 76% of the new comes. Analysts say equity properly, they could eventually
especially cardiovascular and remedies such as remdesivir and territories are also being made demic, as the kits were imported, recovered cases from the 10 states investors usually react to devel- lead to cost-savings for agri-re-
renal systems, Vardhan said his plasma therapies, Vardhan said aware of this through webinars the price tended to be high. But and UTs. Maharashtra continued opments that give quick results lated companies and can be
ministry has already set up expert the government has issued regular and during the tele-consultation now, supplies of testing kits have to top the list, with over 23,000 or provide earnings visibility. passed on to the end-con-
committees to look into also stabilized and recoveries, followed by Andhra “The market’s muted reac- sumer. But these will take time
these aspects of covid-19. HEALTH CHECK domestic production of Pradesh with over 9,000 recov- tion to these developments can to yield results,” says Shah.
“The Indian Council of these kits have com- ered patients. be explained as follows: cur- Private investment in agricul-
Medical Research (ICMR) GOVT has set up ICMR is actively GOVT has issued STATES and UTs menced,” he said. India aims to increase public rently, there are no large-cap ture has been dismal due to mar-
is studying this subject. expert committees
to look into effects
investigating and
researching reports
regular advisories
regarding rational
have been advised
to lower the prices
The ministry of health healthcare spending by 345% over direct beneficiaries of farm keting and regulatory curbs.
ICMR is also actively of the disease on the of reinfection, said usage of remedies of covid-19 has written to states and the current share in the next five reforms in the listed space. According to JM Financial Insti-
investigating and heart, renal systems the health minister such as remdesivir diagnostic tests UTs to engage private lab- years considering the covid-19 Some listed FMCG companies tutional Securities Ltd, private
researching reports of oratories at mutually pandemic, Vardhan said. may benefit from the potential sector investment in the agricul-
reinfection. Although the agreeable lower rates. “I “The government is committed business opportunities, say in ture sector as a percentage of
number of reinfection cases is advisories regarding their rational sessions by AIIMS, New Delhi, have spoken personally to several to increasing the public healthcare the contract-farming space, but gross domestic product (GDP)
negligible at this moment, the usage. Vardhan added. state health ministers regarding spending as a percentage of GDP the entire ecosystem will have to stood at 13.2% in FY18. In the
government is fully seized of the Private hospitals have also been The minister said states and UTs the reduction of prices of testing in from the existing 1.15% to 2.5% by adapt. Only then can we expect same year, private investments
importance of the matter,” said the advised against routine use of have also been advised to lower their respective states,” he said. 2025,” the minister added. benefits to trickle in on earnings. as a percentage of GDP in indus-
However, the market could get try and services sectors were
excited if we see big corporates 34.6% and 35.9%, respectively.
entering the agri space or say a Currently, most farmers sell
company like Big- their produce at
Basket decides to Private government-con-

India Inc eyes overseas M&A transactions list as procure-

FROM PAGE 1
demand for cloud computing
and cybersecurity services rise
after the pandemic. They have
moved swiftly to fill in the gaps
in their portfolios through small
acquisitions. “There will be
interest as there is financial dis-
tress, and assets will be available
for cheap. However, it will be
very selective. Companies or
The company has over 60 experience centres called Pepperfry groups with strong balance
Studios across cities. MINT sheets or companies backed by
private equity funds could look
ment has been
made easier by
investment in
agriculture has
been dismal
trolled wholesale
markets at an
assured floor price.
these reforms,”
due to marketing The government
The cash-rich technology said Amish Shah, has said wholesale
sector has been the most acquis- India equity strat- and regulatory markets will con-
itive. Companies such as Info- egist, BofA Securi- restrictions tinue and the mini-
sys, HCL Technologies and ties. mum support
Tech Mahindra have made “Markets usu- price will not be
overseas acquisitions. Just last ally have a short-term view, so withdrawn. However, there are
week, HCL announced the long-term reforms that don’t concerns that eventually, the
acquisition of Australia-based translate into immediate earn- system of wholesale markets and
IT solutions provider DWS Ltd ings growth do not attract the assured prices would die down.
for around $137 million. market’s attention,” said Ajay This will leave small and mar-
Sector bellwether Tata Con- Bodke, CEO-PMS, Prabhudas ginal farmers at the mercy of pri-
sultancy Services Ltd is also Lilladher Pvt. Ltd. vate companies, economists
Software services firms have seen demand for cloud computing scouring for acquisition opportu- Besides, the markets are pre- said.
and cybersecurity services rise after the pandemic. MINT nities. In an April interview, chief occupied with the pace of “Any reform is disruptive in
operating officer N. Ganapathy demand recovery and the sec- the initial phase, just look at

Pepperfry nears at such overseas acquisitions,”

said Anuj Kapoor, managing
director and head of investment
sitions in the past few years, as According to Kapoor, sectors
their purchases in the go-go years such as pharma and chemicals,
before the global financial crisis which are seeing significant
Subramaniam said while TCS is
not interested in pure workforce
augmentation, it is looking for
ond wave of covid infections, GST. Here, the dismantling of
apart from concerns about the the existing mandi infrastruc-
outcome of the US polls and ture will not be an easy process,

break-even, aims banking at UBS India.

While the pandemic has pre-
sented many opportunities to
hit unravelled soon. Since then, investor interest, could poten-
marquee deals such tially look to
as Tata Steel Ltd’s Only some Indian expand overseas.
firms with a complementary cus-
tomer base with some intellec-
tual property and patents. The
other factors that have led to a given the vested interests of
correction in markets globally. some political parties. There is
In the case of some other a lot of opposition and protests
acquire overseas companies at acquisition of firms may have “For PE-owned company will also look into reforms, the markets’ reaction from many segments; in this
for IPO next year distress valuations, Indian com-
panies are not rushing to buy
them, and only a few are
Corus or Hin-
dalco’s acquisition
of Novelis have
the funds and
the confidence
firms, it could be a
step towards even-
opportunities that can lead to
market expansion, he said.
is more immediate. For scenario, corporates would
instance, when the goods and avoid making huge investments
to take advantage tual monetization. “IT firms are cash-rich...and services tax was announced, immediately. On paper, this
FROM PAGE 1 it continues to be tough for the expected to have the funds and rarely been If a tuck-in acqui- keep acquiring overseas compa- logistics stocks and companies seems to be a game-changer for
rest of the furniture industry. the confidence to take advan- repeated. of distress sition makes busi- nies to build capabilities in weak that were seen as gaining mar- the agriculture sector, but the
Pepperfry isn’t alone. Despite Building an omnichannel busi- tage of this, given the fragile Except for valuations ness sense and areas. So, deals in digital, cloud ket share from the shift from execution is challenging. This is
the disruption from the pan- ness, investing in the brand and global economic recovery is 2018, when firms improves the mar- and SaaS (software as a service) unorganized to the organized a concurrent issue, so now it is
demic, startups Zomato, Delhiv- multiple private labels are the threatening to stall amid a resur- acquired assets ketability of the space keep seeing healthy activ- economy had rallied, Bodke up to the states to act upon it,”
ery, MobiKwik and PolicyBazaar other things we have benefited gence of coronavirus cases. abroad worth $12.9 billion, out- company eventually to a strate- ity,” said Ajay Garg, managing points out. Similarly, when said an economist with a for-
are considering going public in from,” he said. Also, Indian companies have bound M&As have slid into the gic or financial investor, they director at Mumbai-based i-bank- changes to the corporate tax eign brokerage firm, requesting
the next two years. Walmart- The company has more than rarely made large overseas acqui- slow lane, shows Refinitiv data. may evaluate M&A,” he added. ing firm Equirus Capital. were announced last year, the anonymity.
owned Flipkart, too, may go for a 60 experience centres called
listing next year, Mint reported Pepperfry Studios across cities.
on 16 September. The startup raised $40 mil-
Last year, Pepperfry said it lion in its Series F round in Feb-
has started the process of plan- ruary from Pidilite Industries
ning for an IPO. Ltd and existing investors.
Pepperfry competes with News portal Entrackr estimates
Urban Ladder, smaller start- the funding raised the firm’s
Tatas, funds in talks over stake Three-member panel to run LVB
ups, and horizontal marketpla- valuation to $462 million from PRIYANKA PARASHAR/MINT

ces, including Flipkart and $300 million last year. FROM PAGE 1 Sons in October 2016. Typically, in these situa- FROM PAGE 1 said an institutional investor,
Amazon. Urban The IPO pipe- While the Shapoorji Pallonji tions, mediators are appointed requesting anonymity.
Ladder is reported Pepperfry’s IPO line of startups has in a statement that it wants to group wants a quick separa- for a smooth resolution, Lakshmi Vilas Bank Ltd after The development comes at a
to be in talks for a plans come at a also led to specu- end its seven-decades-long tion, Tata group is facing a according to Rukshad Davar, shareholders voted out seven time when the bank is desper-
potential sale. time when lation over where relationship with the Tata challenge because of the size partner, Majmudar and Part- directors, including managing ately looking for capital and is
According to discretionary the listings could group. and timing of the transaction, ners. director and chief executive S. in talks with the Clix Group for
data from Red- happen, and if a The statement came after said the second person. “The two groups could seek Sundar. a merger. The bank’s capital
spends across
Seer Consulting, dual listing is Tata Sons’ counsel Harish “Senior officials of Tata to appoint a mediator each, The panel will exercise the dis- adequacy ratio as per Basel III
India’s online fur- sectors have going to become Salve told the Supreme Court Sons are currently overseas and these mediators, in turn, cretionary powers of the chief guidelines contracted to 0.17 %
niture market been affected mandatory. that Tata group is willing to to figure out the will appoint a executive and will be headed by as on 30 June, and its loss nar-
grew at an annual “If one was to buy Mistry family’s shares at funding of such Given the size of principal media- existing independent director rowed to ₹112.28 crore in Q1
average pace of list in the US, then market value. a large transac- the transaction, tor,” said Davar. Meeta Makhan, the bank said in from ₹237.25 crore a year ago.
approximately 80-85% to an Indian business would be The apex court was hearing tion. They are Tata group may Separately, a statement. The other two mem- The bank is in desperate need “Many directors have
touch $700 million in 2019-20. perceived as an emerging mar- an application of Tata Sons, reaching out to offer to purchase Shapoorji Pallonji bers of the panel are Shakti Sinha of capital and is in talks with rotated on-and-off. A part of the
But online has less than 3% ket business; what would mat- which sought to block Mistry some European
the Mistry family’s group has sought and Satish Kumar Kalra, who are the Clix Group for a merger. HT accountability for the bank’s
share in the overall furniture ter is its rate of growth and prof- firms from pledging Tata sovereign to restructure also independent directors on deteriorating performance
market pegged at $17 billion. itability. However, if listing in shares. wealth funds. 18.4% stake in a ₹10,900 crore of its the bank’s board. Lakshminarayana Murthy as non- rests with its slate of non-inde-
Murty said despite the initial India, you would be looked at as The top court ordered a sta- The Mistry firms staggered manner debt under covid- Earlier in the day, the bank said executive and independent pendent directors,” Institu-
disruption in business during a consumer brand which gets a tus quo on creating pledges on are, however, yet related loan it does not have any asset-liability directors, were also rejected. tional Investor Advisory Servi-
the lockdown, various actions valuation premium in the shares of Tata Sons. The cash- to formally restructuring from mismatch and is successfully ful- These appointments were ces (IiAS) had said in a report.
helped the company move to equity markets. Depending on strapped Shapoorji Pallonji approach the Tata group with its lenders. filling its commitments to depos- taken up for voting at the According to Amit Tandon,
profitability. the path a startup has adopted, group was looking to pledge an offer to sell,” said this per- “While there are no con- it-holders, bond-holders, bank’s annual general meeting chief executive of IiAS, the
“Since the lockdown restric- be it rapid growth or profitabil- the shares to raise funds. son. cerns on the group’s solvency, account-holders and creditors. (AGM) on 25 September. bank has a combination of neg-
tions were lifted, our business ity, will decide the market you The two groups have been Under article 75 of Tata the Shapoorji Pallonji group is The bank said the appointments Shareholders voted against ative tier-1 capital ratio, losses,
has grown sharply every week. want to list in. If I am on a balan- embroiled in a protracted legal Sons’ articles of association facing a maturity mismatch of N. Saiprasad, K.R. Pradeep and these appointments, because of eroding deposit base, high bad
We do more business today than cing path, of growth and profit- battle since Cyrus Mistry, son (AoA), the company has the because several short-term Raghuraj Gujjar as non -executive the bank’s growing levels of loans and low provisions . “Yet
we did in January-February. ability, (listing in) India makes a of Shapoorji Pallonji group right to acquire the shares borrowings come up for and non-independent directors, non-performing assets and it powers on, backed by the
That was made possible because lot more sense for me,” Murty patriarch Pallonji Mistry, was before they are offered to any maturity,” said a Shapoorji Pal- and B.K. Manjunath, Gorinka uncertainty related to its ability promise of raising capital.”
we own our supply chain, though said. sacked as chairman of Tata other potential buyers. lonji group official. Jaganmohan Rao and Y.N. to continue as a going concern, shayan.g@livemint.com
 BUSINESS OF LIFE MONDAY, 28 SEPTEMBER 2020
NEW DELHI 11
STARTUP INC.
where teams play for prize money sup-
ported by media rights. It differs in skill
level, as gully cricket is different from IPL. ESPORTS GAINS
ESPORTS ECOSYSTEM SPEED IN INDIA
The title sponsorship of IPL by Dream 11 From cricket to F1, sports is back after a covid
and sponsorship of two teams by MPL has break. During the lockdown, eports grew globally,
drawn attention to fantasy sports plat- and drew interest from businesses. In India,
forms, with questions being raised on pro- esports has been growing due to improvement
motion of a betting culture. This raises the in digital infrastructure.
hackles of the online gaming community howindialives.com
that considers itself “the real deal.”
“We want to dissociate ourselves from all
this noise,” says Akshat Rathee, co-founder MORE GAMERS ONLINE
and MD of Nodwin Gaming, which con- Internet users have more than doubled in the last five
ducts top-tier esports tournaments like years from 300 million in 2015 to 697 million. This is
helping the esports wave.
ESL India Premiership. “The total amount
of investments done in esports businesses Number of internet users (in million 2015-2025)
1,000 974.86
in India is less than $7 million, whereas the 900
total investments in real money gaming is 800
over $10 billion.” 700
For Rathee, esports promotes skills in 600
demand in the digital age. “The US military 500
has been recruiting gamers for its Predator 400 302.36
drone programme. South Korea exempts 300
its elite gamers from conscription. If you’re 200
100
a top gamer in China, you have a job oppor-
0
tunity in the strategic defence force. Gam- 2015 2021 2025
Estimates
ers get multitasking and super skills for
Source: Statista Digital Market Outlook
emerging domains. It’s both sports and a
harbinger of the future.”
He feels government recognition of YOUTH DRIVE NET USAGE
Akshat Rathee (left) and Gautam Virk set up Nodwin Gaming to professionalize esports in India after getting ripped off at a gaming carnival in Noida. esports and disassociating it from betting-
A third of all internet users in metros with over 50 lakh
oriented models would promote a healthy population are in their 20s. Across the country, youth

Lines between
prize money, showcasing the best video ecosystem where gamers can showcase drives esports growth.
game players to a mass audience, the model their skills at university, national and inter-
Distribution of internet users by age group (in %)
is similar to IPL. It has players, franchises, national levels just like in other sports,
sponsors, broadcasters and advertisers. instead of putting their money down in
Fantasy sport has a different proposition. competitive gaming and fantasy sport con-

esports, gaming,
Here you create a virtual team, whose per- tests. At the same time, he acknowledges 10 12 33 22 13 10
formance is linked to that of players in a the addictive concerns around gaming.
real event like IPL. For example, you could “Parents complain that I’ve got their
pick the names of players participating in children into esports and they’re spending 12-15 16-19 20-29 30-39 40-49 50
years years years years years years
Kings XI Punjab vs Royal Challengers Ban- 9 hours a day practising. I tell them the kids

gambling blurred
galore and form a fantasy team according are pulling wool over their eyes. They’re Source: India Internet 2019, Nielsen, IAMAI
to rules set by a platform like Dream11. playing, not practising,” says Rathee. What
Your team would gain points based on the he means is practising for esports requires
real performance on the ground. as much discipline as a cricket practice ses- FIVE-FOLD GROWTH
The betting element comes in when you sion involving various exercises. The esports audience is expected to grow five-fold
pay money to register your virtual team for Rathee, who is known as an “esports pro- from four million in 2017 to 20 million in 2021, split
a contest with other virtual teams. Here the fessor,” started gaming “when I was six.” He between regular and occasional viewers.
winners gain money from the had a career as an investment Esports audience growth (in million)
losers, with the platform tak-
What involves skill and strategy and where it verges on ing a cut. Courts have so far
The skill vs banker with Ernst & Young
which he left to start his own
2017 2021 (projected)

ruled that picking a fantasy chance issue is practice. About eight years
gambling are obfuscated without a regulatory framework team involves strategy, and so
hard to crack ago, he and his co-founder,
it doesn’t come under the Gautam Virk, went to play in a 2 10 2 10
purview of gambling, like in a because there tournament in Noida called
Sumit Chakraberty games. The 2019 Southeast Asian Games in card game or roulette that’s
the Philippines had esports as a medal based more on chance.
are varying the“ItIndian gaming carnival.
was an unmitigated dis-

A
round the time KL Rahul of event. Video games like League of Legends The skill vs chance ques- degrees of aster. If you’ve seen the Net-
Occasional viewers Enthusiasts
Kings XI Punjab was taking and Pro Evolution Soccer featured in dem- tion is hard to resolve because
down Virat Kohli’s Royal onstration events at the 2018 Asian Games. there are varying degrees of
each in games, flix documentary Fyre Festi-
val, it was that. People were Source: The evolving landscape of sports gaming in India, KPMG

Challengers Bangalore in the This month Ukraine became the latest to each in sports, including tra- including beaten up, we had things sto-
IPL last week, Lawrence The recognize esports. Government recogni- ditional ones like cricket. The len from us, there was no elec- MONEY IN THE GAME
Beast Incarnate was fighting off Brutal tion means esports teams from Sri Lanka, laws that courts interpret to
older ones tricity and the organizers had India's top esports player earns $25,000, a fraction of
Death in the ESL India Premiership. Live Indonesia and Ukraine can participate in make judgements on this, like cricket run away. We basically got the $6.9 million the world's best has earned. The gap is
esports has a fast-growing following in world championship events representing based on the 1867 Indian swindled,” recounts Rathee. an indicator of the potential market.
India, estimated to be nearly 20 million their countries, just like the BCCI’s cricket Gambling Act, are also archaic. Hence the That was the trigger for him to conduct Top Indian esports players by overall earnings (in $)
currently, as tournaments like ESL have team represents India in the World Cup. need for a regulatory body that considers gaming tournaments himself and he spent
received backing from mainstream spon- Apart from being a matter of pride, official the different models of online gaming. the next couple of years learning how diffi- GMharikrishna 24,250
sors such as Airtel and exposure on chan- recognition brings regulatory clarity. The business model of fantasy sports dif- cult that was going to be. Mortal 19,831
nels like Hotstar. fers from esports. You cannot download “My first sponsorship was returnable VipeR 19,831
Despite the evolving digital culture in a NO FRAMEWORK Dream11 or any fantasy sport app from mouse pads.” From there, Nodwin grew to Owais 19,080
country with over 500 million smartphone Right now, because of the scant attention Google Playstore is because it treats it like an annual turnover of a few million dollars.
users, India is yet to recognize esports as a that esports has received from the Indian an online casino. Whether you agree with A couple of years back, it sold a majority Ronak 19,080
real sport involving speed, agility and strat- government, lines between esports, com- Google’s policy or not, there’s no gainsay- stake to Mumbai-based gaming company DitterBitter 18,116
egy like traditional sports. China was one of petitive gaming and fantasy sports get ing that fantasy sports, competitive gaming Nazara. Excali 16,053
the first to do so in 2003, and over 50 other blurred, causing confusion. What involves and esports cannot all be clubbed into the Challenges remain aplenty. Social dis- havoK 15,624
countries have followed suit since then. skill and strategy and where it verges on same category as they tend to be. tancing has reduced scope for physical BlizzarD 14,458
Neighbouring Sri Lanka declared it an offi- public gambling are also obfuscated in the On a competitive gaming platform, play- esports events with spectators. But Rathee
Ace 14,321
cial sport last year, after 150 schools partici- absence of a regulatory framework. ers pay to play and their success depends believes India can be a “superpower” in
pated in an inter-school esport champion- The first step would be categorization of on the monetary loss of other players. This mobile esports because most gamers in the Source: esportsearnings.com
ship. Last month, Indonesia recognized the different forms of gaming. When teams makes the business model more like a stock country take to it on smartphones unlike
PARAS JAIN/MINT
esports and included it in the national enter an esports tournament and play for trading platform than an esports event the PC culture of the West.

For more stories on how startups

PROBLEM, Live esports has a fast-growing follow-
ing in India, estimated to be nearly 20
CHALLENGE
million, as tournaments have received
& SOLUTION backing from mainstream sponsors.
Despite the evolving digital culture in
the country, India is yet to recognize
esports as involving speed, agility
and strategy like traditional sports.
What involves skill and strategy and are changing the way we work
where the sport verges on public gam- and the way we live, follow our
weekly podcast Startup Inc
bling are also obfuscated in the
absence of a regulatory framework.
hosted by Shalini Umachandran
on htsmartcast.com

Mega events add speed to fantasy sports startups’ race for users
Sumit Chakraberty social media giant Tencent. MPL, out the game.
a platform for fantasy sports and

Gamers learn super skills for
emerging domains. It’s sport
and a harbinger of the future.
Akshat Rathee
CO-FOUNDER, NODWIN GAMING
Fantasy is a quarter of our
business, so we’re not
dependent on real-life events.
Shubh Malhotra
CO-FOUNDER, MPL
We have a modified short
version of games as it is an
avenue for monetization.
Rajendran PR
CO-FOUNDER, NEXTWAVE MULTIMEDIA
T
his year’s IPL feels eerie—
ghostly crowd noises from
past tournaments are piped
into our living rooms. It makes one
wonder if the players are real or
everything’s a fantasy.
The games are real, but there’s
no denying the lead role of fantasy
sports in IPL 2020, which had to
be postponed as covid became a
pandemic in March. That a mega-
tournament could be shifted to
UAE within six months, despite
the withdrawal of past sponsors, is
mainly due to fantasy sports apps
stepping into the breach, with
Dream11 as title sponsor. A slew of
them parade in at every ad break.
That IPL materialised was
equally a dream come true for fan-
tasy sports startups because they
depend on mega events on the
ground to engage fans in creating
virtual teams and paying money to
enter contests linked to perform-
ances of real players. The money
they’re splurging on sponsorship
and marketing is more than com-
pensated by their increased visi-
bility, earnings and the hundreds
of millions of dollars that their
backers are betting on them.
Dream11 raised $225 million in
funding recently from Tiger
Global and others on top of its
$100 million round in 2018, which
was led by Chinese gaming and
competitive gaming, announced a
$90 million funding round last
week on top of the $40.5 million it
had previously raised from
Sequoia and others. Sponsorship
in a marquee event quells qualms
investors may have about backing
an activity that is still in a regula-
tory grey area.
RACE FOR USERS
It’s a race among fantasy sports
apps to acquire users. It doesn’t
help that Google has kept them
out of its play store. “Our policies
don’t allow online casinos or sup-
port any unregulated gambling
apps that facilitate sports betting,
including daily fantasy sports in
India,” it says.
What the apps have in their cor-
ner, however, are India’s biggest
cricket icons who persuade new-
bies to get an SMS link to down-
load the app directly. MS Dhoni
dons the gloves for Dream11, Virat
Kohli bats for MPL, and Sachin
Tendulkar has come out to play
for Paytm First Games. BCCI pres-
ident Saurav Ganguly leads the
promotion of My11Circle.
Dream11 is the leader of the pack
and a unicorn. It’s also the oldest
one, having been around from way
back in 2008, the year when IPL
started. The fast-rising is two-
year-old MPL, which differenti-
That IPL 2020 materialized is a dream come true for fantasy sports startups because they depend on mega
events to engage fans who pay money to enter contests linked to performances of real players.
ates itself by deploying fantasy
sports and competitive gaming. It
has 70 games on its platform,
including the popular cricket
game WCC, where players com-
pete against one another with real
money.
“A modified short version of
WCC is on MPL, for those who like
that format of playing, as it is an
additional avenue for monetiza-
tion,” says Rajendran PR,
co-founder and CEO of Nextwave
Multimedia, creator of WCC. The
game developer and MPL share
the revenue which comes mainly
from the difference between
money lost by players and what
the winners get.
The platform play has led to a
user base exceeding 60 million
and over 2 billion cash transac-
tions on the MPL app to date.
“Fantasy is a quarter of our busi-
ness, so we’re not dependent on
real-life events as much as other
PTI
fantasy apps,” says Shubh Mal-
hotra, co-founder of MPL.
At the outset, when MPL started
out, it licensed games from devel-
opers. Then, as its user base grew,
it moved to a revenue share
model. “Once we proved a prod-
uct-market as revenue was getting
generated, content started flow-
ing in from developers,” says Mal-
hotra, adding that the revenue
share also proves far more lucra-
tive for developers than renting
MONETIZATION GAME
Developers can monetize their
games by selling them, getting
subscriptions or from competitive
gaming where players pay money
to compete with one another. It’s
the last one that’s proving the big-
gest hook and money-spinner.
“We generate good revenue for
more than three-quarters of our
game developers,” says Malhotra.
“Some of them will end up gener-
ating a million dollars in revenue
from our platform.”
MPL held an online chess tour-
nament in partnership with the
Karnataka government recently,
to provide relief from the pro-
ceeds to those affected by covid.
“Over 1.5 lakh players participated
in our covid chess tournament,”
says Malhotra.
Each player paid a registration
fee of ₹50 and the cumulative
prize money was ₹10 lakh. The dif-
ference between the collections
and winnings works out to ₹65
lakh, which went for relief in this
case. But the scale and money-
making scope explains why inves-
tors are queueing up to back fan-
tasy sports and competitive gam-
ing platforms.
Sumit Chakraberty is a Consult-
ing Editor with Mint. Write to him
at chakraberty@gmail.com
12 MONDAY, 28 SEPTEMBER 2020
NEW DELHI

REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE

THE REALITY BEHIND

RELIANCE’S RETAIL RUSH
Flush with funds, Reliance Retail has trained its sights on the Flipkart-Amazon duopoly. How will it fare?
AFP REUTERS BLOOMBERG

(From left to right) Doug McMillon, CEO of Walmart, which owns Flipkart; Mukesh Ambani, chairman and MD of RIL; Jeff Bezos, CEO of Amazon

Mihir Dalal ance, which owns India’s largest offline ticians and regulators that India needs a customers in smaller cities initially with Ajio) and grocery that are mostly unorga-
mint
mihir.d@livemint.com retail chain, is finally becoming a serious ‘local’ internet powerhouse to counter the SHORT discounts, profitability will be tough. nised and have a shortage of established
BENGALURU challenger to Amazon and Flipkart, as well dominance of America’s Big Tech and the STORY “The economics of serving metros are brands. In these categories, Reliance faces
as BigBasket and Grofers. growing influence of Chinese firms, partly very different from the rest of India. In the fewer barriers from existing players and

L
ast month, Nimit Jain, an entre- Still, industry executives, logistics because of sovereignty concerns. Reli- mass market, bill values are much, much has a better chance of pushing its private
preneur, ordered biscuits, sham- firms, consultants and analysts that Mint ance’s mastery in lobbying and its political WHAT lower. Right now, Reliance’s main focus is labels in both the wholesale and retail
poo, toothpaste and other items spoke with said that Reliance will find it clout makes the firm best-placed to to scale JioMart, so they aren’t worried markets. But in categories like electronics
for his family in Kota. He used tough to break the dominance of Amazon- exploit this urgent establishment need to JioMart is starting to register about the delivery cost,” the executive and FMCG, which are dominated by
JioMart—the new online shop- Flipkart in e-commerce, similar to how find a domestic internet powerhouse. similar order volumes to cited above said. “But eventually, reality entrenched brands, kirana stores and
ping app by Mukesh Ambani’s Reliance Walmart is struggling to challenge Ama- Amazon, Flipkart, Facebook and others BigBasket, the largest e-grocer. will catch up, and they will have to e-commerce firms, Reliance may struggle
Industries Limited—lured by its low pri- zon in digital sales in the US even as its face many policy-related restrictions that These volumes still comprise a increase basket sizes because this model to scale as fast.
ces and freebies. stores continue to prosper. Amazon and not only serve as obstacles to them but small fraction of the overall isn’t sustainable. Grocery has very thin For instance, Flipkart and Amazon
JioMart was to deliver the order within Flipkart both have deep pockets, proven pave the way for domestic firms led by business of Amazon and Flipkart margins to start with. ” dominate online sales of electronics and
two days, but Jain’s family didn’t receive expertise in e-commerce, popular brands Reliance to enter the fray. For instance, fashion, which together comprise more
the items on time and JioMart didn’t and good knowledge of the Indian market. foreign investment rules prevent Amazon PRIVATE LABEL PUSH than 75% of all e-commerce. To win signif-
AND
inform Jain about the delay. The delivery
was done four days after he had placed the
order, a few hours after Jain had com-
“Reliance has the financial muscle, but
Walmart (Flipkart) and Amazon are no
pushovers,” said Harminder Sahni, man-
and Flipkart from owning inventory or
selling private labels (though critics say
that these firms do it anyway using clever That’s because JioMart is only
O ne obvious way for Reliance to boost icant share in electronics, Reliance will
margins is by selling more private have to spend enormous amounts on dis-
label products. In the grocery category, counts, marketing and offering favourable
plained to the firm via email and Twitter. aging director, Wazir Advisors, a consult- legal workarounds), while Reliance has no selling groceries now; it plans to Reliance Retail already generates 14% of terms to brands . But, in fashion, Reliance
A few products were missing, Jain’s par- ancy. “Today, most people who want to such constraints. Apart from a supportive sell other products like fashion its revenues from private labels. People can tap its low-priced private labels to lure
ents informed him. It took time to figure shop online are happy with Flipkart and policy environment and huge capital and electronics soon. It’s clear familiar with Reliance’s plans said that the customers without resorting to value
out the missing items because the details Amazon. These companies have achieved resources, on the business front, too, Reli- that Reliance is finally becoming a company wants to push its private label destruction.
of the order weren’t available on the app. significant scale and have very few weak- ance has an enviable digital distribution serious challenger products to kirana stores. While there are “The market is too varied for one player
Jain had paid online and asked JioMart for nesses. As a latecomer, it will be very diffi- network and reservoir of customer data on hundreds of well-known brands in FMCG, to be big in all categories,” an investment
a partial refund. Instead of receiving an cult for Reliance to make a big dent in the account of Jio. the grocery category (products like rice, banker said. “Reliance will have to care-
acknowledgement for his refund request, market.” But despite these formidable advanta- HOWEVER pulses and flour) is largely unstructured. fully choose its battles. There’s a risk that
he received a response for his previous Reliance did not respond to an emailed ges, Reliance has yet to prove that it has Reliance plans to sell its private label it may spread itself too thin, so it’s wise for
email about the delay in delivery. Five questionnaire seeking comment. the chops to realise its ambitious vision. Reliance will find it tough to break products both in grocery and FMCG. them to have started with grocery.”
days later, Jain got a refund. The war among Reliance and Flipkart the dominance of Amazon and Apart from retail, Reliance is also rap- Meanwhile, while Google and Face-
Mumbai-based Jain, a computer sci- LOCAL INTERNET POWERHOUSE and Amazon and other internet firms is Flipkart, similar to how Walmart is idly expanding its B2B business. Its pri- book have together invested more than
struggling to challenge Amazon in
ence graduate from the Indian Institute of
Technology, Madras, usually orders gro- D uring the pandemic, Reliance has
not only moved fast to make inroads
ceries from BigBasket and sometimes into the e-commerce market, it has also
also not restricted to retail, but will extend
to other sectors like financial services,
content and business-to-business com-
digital sales in the US even as its
stores continue to prosper.
vate label products form a key component $10 billion in Reliance, both companies
of its retail and wholesale business plans, are continuing to expand their own busi-
the people cited above said. nesses in India. Google and Facebook
from Dunzo. He said that he doesn’t plan consolidated its leadership in organized merce. The technology-centric nature of The private label push, however, is have ambitions to enter e-commerce and
to use JioMart again. offline retail. Last month, Reliance bought the battle is more suited to the internet making large FMCG companies like Hin- expand in other sectors like payments and
“A couple of my friends and relatives (in most of the businesses of Future Group for companies than to Reliance. There’s little But Mint learns that Reliance is sour- dustan Unilever, Marico and Dabur, content. What this means is that while
Mumbai and Kota) have also had similarly about $3.4 billion in a deal that will take its doubt that Reliance will be a major player cing a majority of orders on JioMart in which sell competing products, wary of Google and Facebook will end up collabo-
bad experiences. It doesn’t look like JioM- retail footprint to nearly 14,000 stores— in the digital business, but the jury’s out many cities through Reliance Retail’s sup- working with Reliance’s B2B arm. rating with Reliance in some areas, they
art is ready for online groceries. Their by far, the largest in India. on how much value the firm can corner. ply chain; only a small number of orders Like Flipkart and Amazon, which are will also compete with the firm in others,
operations and customer care teams In the past six months, Reliance has Its foray in e-commerce and B2B will pro- are served through kirana stores. JioMart also expanding their B2B businesses, Reli- joining Flipkart and Amazon in the war of
weren’t in sync,” Jain said. raised more than $21 billion for its digital vide early answers to this question. is signing up a few thousand kirana stores ance’s grand vision over time is to have an the digital conglomerates.
Since JioMart expanded to more than unit Jio Platforms. This month, Reliance every month, but its expansion is happen- integrated ecosystem of wholesale and Flipkart and Amazon have already
200 cities this summer, scores of custom- kickstarted a separate fund-raising spree RETAIL BATTLE ing at a slower rate than many analysts retail in which it connects consumer stepped up their lobbying efforts with the
ers like Jain have com-
plained about missing
products, delayed deliv- The e-commerce wars will
for its retail unit, Reli-
ance Retail, bagging
about $1.8 billion from
A fter JioMart began testing its service
late last year, media reports said that
the company would deliver products to
expect. Two industry executives said that
JioMart’s average order value is lower
than that of other e-grocers, which means
goods makers with kir-
ana stores and retailers,
emergence of Reliance
as a threat. Because of
supplies a large number Reliance is sourcing a majority the pandemic that has
eries and generally poor extend to other sectors like private equity firms Sil- customers from local kirana stores. After that Reliance is losing larger amounts of of private label products of orders on JioMart in many made e-commerce
service. Still, industry ver Lake and KKR, two of Facebook invested in Jio in April in a deal money on every order. across many categories indispensable, there has
executives say that while financial services, content and the investors in Jio. Sev- that included a business partnership According to one e-commerce execu- to retailers and end-cus- cities through Reliance Retail’s been a thaw in the gov-
its service levels have business-to-business eral more investment between JioMart and WhatsApp, Ambani tive, for BigBasket and Grofers, the deliv- tomers, and becomes supply chain; only a small ernment’s attitude
been inconsistent, JioM- firms, including other said that JioMart would soon connect ery cost is about 3-4% of the average order the biggest omnichan- towards the US e-com-
art is registering similar commerce. Technological shareholders in Jio, are some 3 crore kirana stores with their value, which exceeds ₹1000. For Reliance, nel retail firm in the number of orders are served merce firms. A more
order volumes to Big- expected to join them. neighbourhood customers. the delivery cost is presently much higher country. But realising antagonistic attitude
Basket, the largest prowess will play a key role. These moves are part Many analysts, too, expect the partner- because its order value is below ₹800. The this vision will require through kirana stores may return when the
e-grocer, on the back of of Reliance’s efforts to ship with WhatsApp, the most popular lower order value is partly because most of Reliance to work seam- pandemic passes.
aggressive marketing and discounts. transform itself into a 21stcentury digital app in India, to be a game-changer. In JioMart’s 200 city-markets are non-met- lessly with millions of kirana stores, thou- Eventually, though, the war will be
These volumes still comprise a small behemoth. It is positioning itself as India’s July, Goldman Sachs estimated that Reli- ros. BigBasket and others generate an sands of brands, modern retailers (all of decided by customers. Here, experts are
fraction of the overall business of Amazon answer to Amazon, Facebook, Google, Ali- ance’s entry will help expand the online overwhelming majority of their business which will see the firm as a rival to an divided on whether Reliance will emerge
India and Walmart-owned Flipkart, the baba and other world-class digital giants, grocery market by 20 times to about $29 from the metros. Reliance is betting on extent)—and provide exceptional service as the winner. “Reliance still has to do a lot
two dominant online retailers. But that’s and unlike local startups like Flipkart, Ola billion by 2024. Reliance’s partnership expanding the e-grocery market rather, in a profitable manner to retail customers. more on getting the customer experience
because JioMart is only selling groceries and Paytm that have or had similar ambi- with Facebook could help the firm than taking market share from incum- Analysts and industry executives said in place, but given the strides they’ve
now; it plans to sell other products like tions, Reliance enjoys some unparalleled become the leader in e-grocery and gar- bents, which generate an overwhelming that Reliance has a higher probability of made, it is well-placed to compete in the
fashion and electronics soon. It’s clear that advantages. ner a market share of more than 50% by majority of their sales from 10-15 cities. finding success in categories like fashion digital space,” said Devangshu Dutta, head
after many years of talk and hype, Reli- It is now accepted wisdom among poli- 2024, Goldman said. But while Reliance may be able to attract (in which it already runs a portal called of retail consultancy firm Third Eyesight.
 PERSONAL FINANCE MONDAY, 28 SEPTEMBER 2020
NEW DELHI 13
MINT M NEY
Sebi plans to reduce risks in debt funds
The markets regulator has come out with four proposals to introduce safeguards that may eventually help mitigate liquidity risk in these mutual funds
MINT
Neil Borate improve liquidity in the corporate CREATION OF A BACKSTOP do in our debt schemes, apart from Sebi measures such as putting lim-
neil.b@livemint.com bond market. Tyagi outlined the possibility of the liquid fund where it is man- its on credit-enhanced securities.
We tell you what these four pro- creating a backstop mechanism, an dated,” said Radhakrisnan. The issuers of these securities may

T
he shock freezing of six
debt schemes of Franklin
Templeton Mutual Fund
in April this year made a
lot of investors wary of
the debt market in general. The
schemes were frozen as a result of a
surge in redemptions in the
schemes, which faced liquidity
issues as they were unable to sell
their holdings to meet the requests.
Suddenly, investors became aware
of the risk of lack of liquidity in debt
mutual funds; the credit crisis had
already shook their confidence in
the last couple of years.
In order to address this broad
investor angst, capital markets reg-
ulator Securities and Exchange
Board of India (Sebi) is now consid-
ering a set of proposals that have
the potential to greatly reduce the
risk in debt mutual funds and
improve liquidity. The proposals,
cumulatively, build safeguard
against the recurrence of an FT-like
episode. In a speech last week, Sebi
chairman Ajay Tyagi outlined the
four proposals that can help
posals are and what they mean for
debt fund investors in India.
REPOS EXTENDED
In a repo or lending operation, the
borrower offers a security to take a
loan. For example, a mutual fund
with a portfolio of bonds worth
₹1,000 crore might need ₹50 crore
in a week to meet redemptions. It
can either raise the money by sell-
ing the bonds or borrowing against
them. If liquidity is poor in the bond
market, borrowing might be a
cheaper option.
While such repo operations are
common when it comes to govern-
ment bonds, that’s not true for cor-
porate bonds.
Tyagi announced that Sebi was
considering setting up a central
clearing corporation for repos in
investment grade (BBB or higher)
corporate bonds with guaranteed
settlement. This can allow mutual
funds to borrow money against
their assets when redemptions are
high without having to sell them at
throwaway prices.
“Repos in corporate bonds need
two things to pick up. First, a stan-
dardized exchange-based system so
that repo documentation doesn’t
have to be repeated again and
again. Second, a clearing corpora-
tion which will take custody of the
collateral and guarantee trades.
Even if the first is done, it can
greatly improve liquidity in the cor-
porate bond market,” said Rajeev
Radhakrishnan, head, fixed
income, SBI Mutual Fund. Clearing
corporations such as those which
operate in stock exchanges guaran-
tee that trades will be honoured. So,
if the borrower defaults, the clear-
ing corporation will sell off the col-
lateral and make good the repay-
ment.
entity which can buy illiquid debt
during times of crisis. The corpo-
rate debt market is relatively illiq-
uid even normally and a crisis
aggravates this situation, making it
difficult for fund managers to hon-
our redemptions.
However, the Sebi chairman did
not outline how this entity would
be funded.
MINIMUM CASH HOLDING
Current Sebi rules require liquid
funds to hold at least 20% of their
assets in cash (or equivalents such
as treasury bills). However, there
are no such rules for other debt
fund categories. Sebi announced
the constitution of a committee to
look into the matter and said that
interim rules will be framed until
the committee gives its recommen-
dations. The Mutual Fund Advisory
Committee (MFAC) will be con-
sulter in the matter, Sebi said.
“Having all debt funds keeping
some portion of portfolios in liquid
papers like T-bills is a welcome
step. This is something we already
However, a debt fund manager at not individually make the cut but
a mid-sized fund house, who was get ratings due to enhancements
didn’t want to be named, expressed like pledged shares in group com-
apprehensions. “Asking debt funds panies or promoter guarantees.
to keep, say, 10-20% in cash can However, there are concerns
take a major toll on the returns. about such policies triggering the
This is especially true flight of institutional
for long-duration There are investors from debt
funds,” he said. concerns that the funds. “Cumulatively
rules may trigger all these measures will
SWING PRICING the flight of push large treasuries
Swing pricing is a tech- away from debt funds
institutional
nique that imposes a for short-term needs.
cost on investors who investors from The stamp duty, for
make large redemp- debt funds example, also has this
tions from debt funds effect. MFs will be
in times of crises. This more a place for HNI
affects the net asset value (NAV). “It and retail investors, even debt MFs.
is a concept applied internationally Currently, almost 90% of the
where large investors exiting or money in liquid funds and around
entering a fund get a price or NAV 50% in other debt schemes is insti-
that more truly reflects the underly- tutional money,” said the fund
ing debt portfolio transactions. It manager, who declined to be
may be applied in India also, but it is named. This could affect the mar-
only used in very extreme situa- gins of AMCs due to lower volumes
tions,” said Radhakrishnan. and, hence, increase the expense
The four proposals can go a long ratios of funds. On the plus side,
way towards making debt funds schemes will be less vulnerable to
safer, when taken along with other the whims of institutional money.

Long-term capital gains are taxed at ‘There is a case for the tenure of
20% plus surcharge, education cess covid-19 policies to be extended’
ISTOCK
Parizad Sirwalla investments since 2007, the gains
shall be considered as long-term cap- Disha Sanghvi
I am an Indian resident since ital gains or losses (LTCG or LTCL). disha.s@livemint.com
2008. Prior to that, I was a non- LTCG or LTCL is first calculated in For customers

resident Indian (NRI), working
in the UAE. In 2007, I had made
an investment in the UAE, which
is maturing soon. I wish to trans-
fer the returns to my resident
bank account in India. Do I have
to make any declaration in my
income tax returns (ITR) for this
year? Once the amount is repa-
triated to India, what will be my
tax liability?
—Name withheld on request
We are assuming that there shall
not be any UAE personal tax liability
upon the maturity of the investment.
Query 1: For the years you quali-
fied as a resident and ordinarily resi-
dent (ROR) in India, there was in any
case a requirement to disclose the
said investment in the AL Schedule
(if your taxable income exceeded ₹50
lakh) and Foreign Asset (FA) Sched-
ule of your ITR, at cost, under the rel-
evant heads. Also, there was a
requirement to offer income thereon
(interest, dividend and so on), if any,
to tax in India. You would, accord-
ingly, be required to disclose the
investment details and income
thereon in your ITR for FY20.
ASK MINT
m TA X AT I O N
Query 2: As you qualify as an ROR
for FY21, your global income is taxa-
ble in India. At the time of maturity
there could be a potential tax impli-
cations, depending on the type of
investment. Generally, if the invest-
ment is regarded as a capital asset,
the capital gains from the transfer of
the foreign investment shall be taxa-
ble, irrespective of whether or not
the sale proceeds are transferred to
your Indian bank account or not.
As you have been holding the
A who picked up
foreign currency, as the difference nand Roy, managing
between the net sale consideration Your director, Star Health
(actual sale consideration less bro- insurance
and Allied Insurance policies with shorter
policy may
kerage and incidental expenses) and reward you Co. Ltd, has been with the tenures of 3.5 and 6.5
the indexed cost of acquisition for staying company since 2006 and has months, the
(ICOA) and improvement. ICOA in fit been instrumental in launch-
your case would be calculated as the bit.ly/insurefit ing many flagship products. extension will make
cost of acquisition or cost inflation He also spearheaded the com- sense
index (CII) of the year of purchase pany’s digital transformation.
multiplied by CII of the year of sale In a conversation with Mint, ANAND ROY
Managing director,
(CII for FY21 is 301). The gain, if any, Roy talks about what’s worked Star Health and Allied Insurance
shall be taxable at 20% plus sur- for the insurer in terms of
charge and education cess. LTCG or growth, the impact of covid-19
LTCL so determined in foreign cur- claims on its business, and how
rency has to be converted into rupees it is dealing with healthcare
using the telegraphic transfer (TT) providers to control costs.
buying rate issued by the State Bank Edited excerpts:
of India, as on the last day of the Given covid-19, the uptake
month immediately preceding the for health insurance is
month in which the property is sold. quite evident. Standalone
In case of an LTCG, you may explore health insurers, in particu-
roll-over exemptions towards pre- lar, saw a year-on-year compared with the time of the Arogya Sanjeevani and because of such claims, but
scribed reinvestments in India. 25.85% growth in August. complete lockdown. But the corona-specific policies, we when you look at it on a cate-
Any future income or investments What has been the driving number of non-covid claims is have sold the most number of gory-to-category basis, it has
from the repatriated proceeds will force for Star Health? almost the same as last year. these products. There is a case not come down. For example,
also be taxable. We are a standalone health for the tenure of the covid poli- an ICU claim size is still the
Parizad Sirwalla is partner and insurer with more than 50% How will rising covid cies to be extended because same as it was in March-April.
head, global mobility services, tax, market share. Even before claims and the resumption coverage is required, at least
KPMG in India. Queries and views at covid-19, we were growing of non-covid claims impact for the next six months. For What challenges has covid
mintmoney@livemint.com quite fast. But after the lock- the business? Do you see a customers who picked up poli- posed for health insurers.
down, people realized the big rise in premiums in the cies with shorter tenures of 3.5 What are the industry’s
requirement for health insur- short- to medium-term? and 6.5 months, the extension prospects in terms of
ance and are initiating the pur- I don’t think premiums will will make sense. There is also a growth and products?
chase process rather than rise due to covid-19 because case for allowing migration to There are two challenges.
insurers pushing through every year our claims go up by another policy and continuity One, unless we have a greater

What a car loan costs you agents or other channels.

Given our large presence,
we’ve been able to cater to
20-30% over the previous
year. Now, this increase is
c o m i n g
of benefits into a comprehen-
sive plan. We are taking this up
with the regu-
understanding with network
providers, the cost of hospitali-
zation may remain uncon-
It is tempting to buy a new car, be it an upgrade, a first car or another car for the family. Whatever
be the reason, a car loan makes the purchase easier. Car loans are usually of three to five years
but some lenders may offer loans for up to seven years too. A loan for longer may mean smaller
demand across the country,
including tier II and III cities.
largely from
covid-re- MONEYGURU lator.
We have
trolled. Claims are likely to go
up so unless hospitals agree to
lated treat- sold more play ball, the claim size will
equated monthly instalments (EMIs), which makes the car seem more affordable, but overall, you How many covid-19 claims ment, but overall, it’s match- than 300,000 Corona Kavach remain a challenge. Two, busi-
pay more as interest. Don’t forget that a car is a depreciating asset, so taking a bigger loan have you settled? Are you ing our expectations because policies but it is true that we’ll ness transformation. Investing
may not be the best thing to do. But if you take a car loan for a short duration, the EMIs seeing a surge in non-covid the number of accident-re- have to try and move these pol- in technology and digitization
will be heavy and non-payment will mean a blot on your credit report. Conditions claims as well now that lated claims has gone down. icyholders to a regular health has become important due to
apply to the loan amount also. For instance, some lenders give a loan for the full planned surgeries have Having said that, the size of insurance plan. The pandemic the pandemic. Unlike life and
ex-showroom price of the car, while others may offer a loan up to 80%. Apart from resumed? covid claims is at least two will eventually leave us but the general insurance, we cannot
the interest rate on a car loan, also take a look at the applicable processing fee and There has been a surge in times regular claims. That’s importance of health insur- delay settling claims because a
other charges. the number of covid-19 claims, where the challenge lies. This ance will not diminish. big chunk is cashless. We were
Loan amount = ₹1 lakh. Tenure = 5 years especially in the last three is the reason why we are trying reasonably prepared on the
months. Initially, most people to negotiate with the hospitals Has the average size of tech front but speeding up of
Interest were getting admitted in gov- to design packages to get a covid claims dropped? the processes is necessary.
Lender EMI (₹) Processing fee (excluding taxes)
rate (%) ernment facilities, but after handle on the claim size. What’s happening about In terms of outlook, there
Central Bank of India 6.85-7.80 1,973-2,018 Up to ₹500 per proposal June, private hospitals started We are hoping that in the standardizing of rates? are studies which show that in
taking in a significant number next couple of months, as pro- The rates are not standard- the past, after pandemics such
Punjab & Sind Bank 7.10-7.45 1,985-2,001 Full waiver of processing charges during festival campaign period
of covid-19 patients and the tocols become more defined ized as yet and it depends on as SARS and MERS, the health
Union Bank of India 7.15-7.50 1,987-2,004 ₹1,000 + GST claims started coming in. and as the government comes the city and the category of insurance industry doubled
Bank of Baroda 7.25-10.25 1,992-2,137 0.50% of loan (minimum ₹2,500, maximum ₹10,000) + GST
As of 18 September, we’ve up with stricter guidelines, hospital. But the good thing growth for the next three-four
received about 42,000 claims hospitals will fall in line and now is that hospitals are will- years because of increased
Canara Bank 7.30-9.90 1,994-2,120 0.25% of loan (minimum ₹1,000, maximum ₹5,000) and settled close to 32,000 things will settle down. There ing to have a dialogue. awareness. I foresee a similar
Bank of India 7.35-8.05 1,997-2,030 Up to 0.25% of limit (minimum ₹1,000, maximum ₹5,000) already. We received the high- is a lot of discussion on getting The average claim size for us trend. Customer expectation
est number of claims given our all stakeholders on board and, is close to ₹1.1 lakh. In the ini- will change too so we will have
Nainital Bank 7.40-8.50 1,999-2,052 Nil market share. We haven’t sooner or later, there will be tial months, the claim size was to focus on developing prod-
Indian Overseas Bank 7.55 2,006 0.50% (minimum ₹500) for loans up to ₹5 lakh really seen fraudulent claims some consensus. Until then, higher but that’s because most ucts that are relevant such as
but there are instances of over- more insurers with large expo- of them were ICU and critical disease-specific products like
Punjab National Bank 7.55-7.80 2,006-2,018 Full waiver till 31 December 2020 charging by the health pro- sure to health products may care claims. Now even people cancer and diabetes that cover
UCO Bank 7.7 2,013 1% of loan (maximum ₹1,500) vider. We have arrived at a pre- look at negotiating directly who are asymptomatic are get- people with pre-existing con-
ferred network of hospitals with healthcare providers to ting themselves hospitalized ditions. We are working on
Bank of Maharashtra 7.70-8.95 2,013-2,073 0.25% of loan
(300 across India as of 18 Sep- protect their bottom line. and insurers have to pay. this and already have quite a
State Bank of India 7.70-11.20 2,013-2,184 Up to 0.50% of loan + GST (nil if customer applies through Yono app) tember) and are encouraging Claim size has gone down few products for customers.
our customers to get treated The regulator is mulling
Indian Bank 7.80-8.15 2,018-2,035 As applicable
there. We have negotiated our extending the tenor of
Jammu & Kashmir Bank 7.95-8.70 2,025-2,061 0.50% of loan (minimum ₹500) own packages for covid for covid policies. What’s your For more stories about how to manage
hospitalization as well as home view on this? Will insurers your money life, listen to the podcast Why
IDBI Bank 8.00-8.60 2,028-2,056 ₹1,000 + applicable taxes per proposal
treatment. We are negotiating be able to cross-sell regular Not Mint Money with Mint’s Personal
Banks that have not updated information on their websites are not included here. Data was taken from bank websites on 24 September 2020. The EMI range is indicative
and calculated on the basis of interest rate range. In an actual situation, it may include other fees and charges. Actual applicable interest rate may vary based on the credit to expand the network. plans to those who’ve Finance team on htsmartcast.com. Invest
profile, loan amount, tenure and as per bank’s discretion. We are seeing a rise in the bought covid plans? smartly to make every penny count.
PARAS JAIN/MINT Source: MyMoneyMantra.com number of non-covid claims After the regulator launched
14 MONDAY, 28 SEPTEMBER 2020
NEW DELHI VIEWS
V EWS
OUR VIEW MY VIEW | PARALLAX VIEW
PTI

Read aloud to laugh out loud in

this weird age of masked mirth
One could insure oneself against the grimness of news by reading stuff that’s guaranteed to tickle

it. Aloud. The virus will cower before
your guffaws.
I am confining myself here to fun for
fun’s sake. So no Shaw, Catch-22, Von-
negut. Therefore, Mark Twain. It’s a
lot of trouble selecting just one of his
stories, but I settled for How I Edited An
Agricultural Paper. The topic is obvious.
I quote: “The excited listener sprang
SANDIPAN DEB towards me to shake hands, and said—
is a former editor of ‘Financial Express’, and ‘There, there, that will do. I know I am
founder-editor of ‘Open’ and ‘Swarajya’ all right now…When I first read it in the
magazines morning… notwithstanding my friends
who kept me under such strict watch,
but now I believe I am crazy, and with
that I fetched a howl that you might
readers to solve); and Lord Emsworth
and the Girl Friend (the sweetest story
that Wodehouse ever wrote). Or you
could just read Gussie Fink-Nottle’s
speech presenting the prizes at Market
Snodbury Grammar school in Right-Ho,
Jeeves!
From stories to novels. Strangely—or
not—the answer was easily agreed upon
by the jury. A Confederacy of Dunces by
John Kennedy Toole, published 11 years
after he committed suicide because the
book was rejected by every publisher he
sent it to. In 1981, it earned him a post-
humous Pulitzer Prize.
The novel was finally published

S
o I woke up this morning, noted all have heard two miles, and started out to through the efforts of Toole’s mother

Don’t deny India a seat

the bad news in the newspapers, kill somebody—because, you know, I and the writer and academic Walker
took my dogs out for their morn- knew it would come to that sooner or Percy. In his introduction to the book,
ing walk, and thought: What the hell. I later, and so I might as well begin…. I Percy wrote: “Toole’s greatest achieve-
asked my daughter: What’s the funniest burned my house down and started. I ment is Ignatius Reilly, intellectual, ide-
story you’ve ever read? She said (very have crippled several people, and have ologue, deadbeat, goof off, glutton, who

at the UN’s high table serious person, worried about the

future of the world and all that stuff):
Importance of Being Earnest by Oscar
Wilde. So my wife and I had the most
one fellow up a tree, where I can get him
when I want him. But I thought I would
call in here as I passed along…; and now
it is certain, and I tell you it is lucky for
should repel the reader with his gargan-
tuan bloats, his thunderous contempt
and one-man war against everybody—
Freud, homosexuals, heterosexuals,
fabulous morning reading out the play the chap that is on the tree… Good-by, Protestants, and the assorted excesses
to each other, laughing and sharing a sir; you have taken a great load off my of the modern times.” Ignatius Reilly
India’s case for veto authority isn’t just a matter of what’s just, as our PM said, but also of the sort of joy that seems to be a thing of the mind. My reason has stood the strain of knows it all, and he hates the all of it. It’s
past in these times. one of your agricultural articles, and I splendid beyond description.
UN’s relevance as global power shifts eastward. An empowered India is in the world’s interest Try it. Really. know that nothing can unseat it now.’” A personal episode. I had lent my
And then I reflected: What are the Of course, Wodehouse has to figure, copy of A Confederacy of Dunces to my
funniest stories or books that one has but from that vast treasury, how do you best friend Tilak, who left it behind on a
read? Stories that you can return to and select one story? After deep discussions plane after a Delhi-Bangalore flight.

T
his should be self-evident even to
those who are not Indian. With
influence over the world order this
century expected to tilt from west
to east, it is not just a travesty of the
United Nations’ (UN) ideals to deny
India an equal voice at its highest level, it could
actually worsen the odds of global peace. That
the world’s largest democracy, home to every
sixth individual alive, must have a vote no less
than any other country has been obvious all
along. The realities of this era, however, dic-
tate that an institution built on the rubble of
World War II must either reform itself to face
the future, or risk turning into a relic of the
past. A permanent seat at the UN Security
Council would not be a favour to India, but to
all. Addressing the UN’s general assembly on
Saturday, Prime Minister Narendra Modi
asked how long we must wait for one. The
global body may or may not have been reduced
should have made all countries collectively just laugh yourself silly? I called the with friends, I had a selection. Shashi That’s okay, I told him. Those were pre-
squirm, though, was about the world’s current brightest people I know. Tharoor, who has read every one of his Amazon, pre-Flipkart days, books were
“Bright” means you have to play the 70-odd books, may differ, but Bertie not available at the click of a mouse. And
crisis. Where, he wondered, was the UN in our theme music of Magnificent Seven when told us, “As Shakespeare says, if you’re A Confederacy of Dunces was difficult to
global fight against the covid pandemic? India, you call them. We decided to limit our- going to do a thing, you might as well find since it was no Stephen King best-
he assured the world, was ready to aid its efforts selves to English. pop right at it and get it over”, and I will seller. Tilak searched and got me a
as a vaccine supplier. He left unsaid Beijing’s For me, the crown goes to James not argue with Stratford’s Will. So the copy—perhaps from overseas. Because
Thurber’s More Alarms at Night. If you choice came down to The Clicking of he decided that I should have this book
bizarre behaviour since the viral outbreak, don’t laugh out loud every time you Cuthbert (“No novelist any good except for always. That is the true value of
from its opacity in its early days to brazen dis- read it, you should order a census taker, me! Sovietski—yah! Nastikoff—bah! I books and friends.
plays of disregard for the sovereignty of others. fava beans and a bottle of Chianti. Thur- spit on zem all…PG Wodehouse and Yes, value. And in these strange
A Chinese veto has long held a Sword of ber’s brother Roy decides to have some Tolstoi not bad. Not good, but not bad. times, funny books are worth a bit more.
Damocles over India’s quest for a weighty role fun, and at three in the night, shakes his No novelist any good except me.”); The last thing we need is to drink the
father awake, and says: “Buck, your time Uncle Fred Flits By, where the elderly cup of life and find a dead beetle at the
in world affairs, though New Delhi’s nuclear has come.” Of course, no one in the cool cat forces Pongo Twistleton to act bottom (Courtesy: Pelham Grenville
policy had no doubt complicated matters. Thurber family had ever been called as a deaf veterinarian who stammers W). Try reading, aloud The Importance
Today, it seems, China fancies itself as a fully Buck. Chaos ensues, with unintended in his sign language (genius!); The of Being Earnest. Or Winnie the Pooh.
paid-up hegemon, ready to bend the world’s and insane consequences. Please read Amazing Hat Mystery (which I leave the The things you may find!
future to its will. It has violated India’s borders,
muzzled Hong Kong, and glowered at Taiwan.
Beijing has some reason to be smug. It is set to
be the only major economy that will expand
this year, even as India’s contracts by what
might be double digits. By the latest estimate, www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Chandigarh*, Pune* Tuesday, September 28, 2010 Vol.4 No.231 `3.00 32 PAGES

to a “talk shop”, as its critics call it, but reform put out by the National Council of Applied ENERGY: BP’s Dudley to visit
India, may discuss field stakes >7
LEGAL: Both sides say Ayodhya case should

could raise its prospects of relevance as China
Economic Research, our output may shrink by EXCLUSIVE PARTNER
be decided one way or the other >5
WSJ: China tightens checks on Japanese goods;
clearance of trade between the two slows >27
CORPORATE: Vishal Retail requests Delhi
high court to allow sale of assets >30

begins to exert its clout beyond its borders. 12.6% this fiscal year. While China quelled its SENSEX 20,117.38 Æ72.20

Foreign pilots
NIFTY 6,035.65 Æ17.35

ON A ROLL
DOLLAR `45.01 æ `0.24

SC DIRECTIVE
EURO `60.62 æ `0.26 GOLD `19,090 æ `50 OIL $78.94 Æ $0.07

QUICK EDIT
Foreign inflows have risen sharply in the past few years and FIIs

Vodafone tax liability Thieves as

Modi offered a sharp review of the UN’s epidemic months ago, India’s corona curve has in demand as have become the key driver of equity markets in India today.
20
(in $ billion)
17.96
fleets expand
B Y T ARUN S HUKLA
15

tarun.s@livemint.com
·························
10
tops `12,000 cr: CBDT policemen
5 B Y N IKHIL K ANEKAL & TAX CALL T he United Nations
(UN) sometimes feels

I know not all that may

NEW DELHI 0.83 S ANJIV S HANKARAN like a place where the
The case involves Vodafone’s indirect

record, one that is riddled with failures. For all only just begun to flatten, though actual infec- A irlines have started lobbying 0 ························· acquisition of Hutchison Essar. game of chor sipahi (or,
-0.16 NEW DELHI
the aviation regulator for a if you prefer, “cops and
2007
T
-5
blanket five-year clearance to he income-tax department robbers”) is played. The
employ foreign pilots, preparing will, for the first time, for- MAY: Vodafone completes acquisition of CGP first round: one guy
-10 share capital from Hutchison International
to expand their combined fleet mally levy a tax estimated to be a pretends to be the thief,
strength by one-third in antici- -12.18 little more than `12,000 crore, AUG-SEP: The I-T department issues the other the policeman.
-15
pation of a coming boom in pas- 1995 1997 1999 2001 2003 2005 2007 2009 inclusive of interest for belated show-cause notice to Vodafone Next round: they switch.
1993 2010*
senger traffic. *includes Monday's provisional data from Bombay Stock Exchange Source: BSE, Sebi
payment, on Vodafone Interna- OCT: Vodafone files a writ petition in the That’s our best guess for
The industry also wants the tional Holdings BV as it failed to Bombay high court why the UN decided to

its achievements, he pointed out, too much tions could be multiples higher and our official
AHMED RAZA KHAN/MINT
Directorate General of Civil Avi- deduct tax on the money it paid have Pakistan as head of
$17.96 BN 2008

be coming, but be it what

ation to give airlines the flexibili- Hutchison Telecommunications the International Atomic
ty to offer expat pilots three-year, International Ltd in 2007 to buy DEC: Bombay high court says the I-T
Energy Agency’s governing

FII buying in
department has the right to investigate.
renewable contracts. They are the latter’s majority stake in Indi- Vodafone appeals to the Supreme Court and body. (see Page 9)
also seeking easier security pro- an telecom company Hutchison is sent back to the I-T department Pakistan, of course, has
cedures for the foreign staff. Essar Ltd. had fun playing thief. The
Top executives of domestic “Around `12,000 crore-plus”, 2009 father of the Pakistani
airlines, including Jet Airways estimated S.S.N. Moorthy, chair- OCT: The I-T department issues a fresh atomic bomb, A.Q. Khan,
(India) Ltd, Kingfisher Airlines man of the Central Board of Di- show-cause notice to Vodafone

stocks hits
has been accused of

blood has been spilt through acts of war or count just a function of the tests done. Unless
Ltd and Air India, met director rect Taxes (CBDT), after the Su- 2010 running a nuclear
general Nasim Zaidi in New Del- preme Court on Monday direct- 29 JAN: Vodafone responds to the proliferation racket:
hi last week to voice their de- ed the tax department to deter- show-cause notice arguing that the I-T selling secrets to North

it will, I’ll go to it laughing.

mands, said people familiar with mine the extent of the firm’s tax department does not have a jurisdiction Korea and other upright
the development. liability before 25 October. The 31 MAY: The I-T department issues an order global citizens. It now

lifetime high
“It’s not just a requirement precise tax liability would be cal- claiming jurisdiction to the tax transaction, but wants to play the cop.
from a (flying) skills perspective, culated by an assessing officer does not mention the exact tax liability The UN has every
but from a safety perspective,” handling Vodafone’s case. CBDT 7 JUN: Vodafone files a writ petition in reason to suspect
said one of the airline officials will not interfere in the calcula- the Bombay high court challenging the Islamabad’s credentials.

terror, with the UN unable to contain either our economy recovers soon, the gap between
who attended the meeting, but
didn’t want to be named be-
cause the proposal is still under
discussion. “If we don’t have a
Fata (foreign aircrew temporary
authorization), which is globally
allowed for five years or more, in
the long-term you will not attract
the best pilots.”
Cheap money abroad Llp, a global fund registered as
and lack of other high an FII in India, said, “The
near-zero interest policy and
growth options are quantitative easing measures
the key factors driving in the US have raised the level
of liquidity, which is finding its
the inflow into India
tion of the final liability, Moorthy
said. “(It is) a case of monumen-
tal nature which has attracted
worldwide attention,” he said.
Earlier on Monday, Vodafone
approached the apex court with
a special leave petition against
the tax department after the
I-T department’s order on jurisdiction That it still lets Pakistan
4-18 AUG: I-T department and Vodafone assume this power is a
present arguments in Bombay high court mockery of its system.
8 SEP: Bombay high court dismisses
Or perhaps, it’s a new
Vodafone’s petition and affirms the I-T strategy for world peace.
Maybe the UN thinks
department’s jurisdiction on the transaction
that, in this game, who
27 SEP: Supreme Court asks the I-T
department to raise tax demand on Vodafone better than a thief to
play policeman.
within four weeks. Hearings to continue

menace. The Prime Minister made no overt Asia’s big two will widen further. We must not
Some 150 aircraft are expected
to join India’s airlines by 2015,
adding to the 400-odd they cur-
rently operate, and creating
1,500 pilot jobs. Airlines are ex-
panding in the anticipation that
accelerating economic growth
way into emerging markets, in- TURN TO PAGE 4® Source: Mint research
cluding India.”
B Y P RAMIT B HATTACHARYA & Though inflows have
A SHWIN R AMARATHINAM reached a peak, the Sensex has
························· not been a great beneficiary:
MUMBAI This year it has gained only

N et investment by for- 15% unlike in 2007, when it

HE R MA N ME LV I L L E
will boost passenger traffic, eign institutional in- rose 47%. But even then it is
which has grown 20% year-on- vestors (FIIs), the main the best among so-called Bric

reference to China, nor to our Himalayan let that happen. But the job of keeping the
year so far in 2010.
The regulator has told the air-
lines, which have 600 expats
among 4,000 pilots, to phase out
the foreigners by July to create
jobs. India also has around 4,000
fresh-out-of-college unemploy-
ed, inexperienced pilots who
can’t command aircraft.
driver of the Indian stock mar-
ket, has hit a new high even as
its benchmark equity index,
the Sensex, is trading 756
points away from its peak. The
index rose 72.20 points, or
0.36%, to close at 20,117.38 on
Monday.
At the end of Monday’s
(Brazil, India, China and Rus-
sia) countries.
With stock prices moving to
a higher base, the rise in equity
values is relatively muted. Be-
sides, a chunk of the flows has
gone to the mid-cap stocks,
analysts said.
According to Murali

stand-off, but no one could miss the allusion planet in harmony is the UN’s. If the challenges
Safety expert Mohan Ranga-
nathan said expats should be al-
lowed with riders that existing
Indian co-pilots will be upgrad-
ed. “The future captains are the
current co-pilots,” he said. “If
you do not recruit them and let
them gain experience, you are
not going to get experienced pi-
trade, FII investment in Indian
stocks, net of sales, this year to-
talled $17.96 billion (`80,820
crore), the highest in the 17
years since the country allowed
their entry, crossing the previ-
ous highest inflow—$17.78 bil-
lion—that came in 2007.
This amount includes the
Krishnan, head of research at
Ambit Capital Pvt. Ltd, a Mum-
bai-based brokerage, FII flows
were more dispersed this year,
as many mid-cap stocks with
better valuations attracted
flows. “The recent surge though
has been led by large-caps over
the past few weeks,” he said.

when he said India’s friendships were never at on this front stiffen, the world may come to rue
lots to be upgraded to captain’s provisional figures of FIIs’ net
position in the future.” purchase of `1,136 crore, or
$252.52 million, on Monday.
Fund managers say cheap
money abroad and lack of oth-
er high growth options are the
key factors that are driving the
inflow into Indian stocks. Most
believe that the flow will con-
In 2009, the Sensex rose
higher on a similar amount of
flows as it came off a low base,
he said. In 2009, when FIIs re-
turned with flows of over
$17.64 billion, the Sensex
gained 81.03%, its second
highest annual rise in history.
As the subprime crisis deep-

the cost of a third country, and that New Delhi letting Beijing hold the East’s sole veto. For the
tinue as investors seek more
growth opportunities in equi-
ties, given the low interest
rates, especially in developed
market fixed-income securities.
India’s robust economic
growth indicators such as 8.5%
estimated growth in gross do-
mestic product for fiscal 2011
ened in the US, followed by the
collapse of US investment
bank Lehman Brothers Hold-
ings Inc. in September 2008,
foreign investors sold Indian
stocks worth at least $12.2 bil-
lion net of buying and the
Sensex lost 52.45% in 2008.
Analysts say the overall out-

was not in the business of using diplomacy to sake of peace in Asia and beyond, India must
and 20% estimated company
earnings growth have helped
attract overseas money.
Ullal Ravindra Bhat, manag-
Mint is also available for R5.50 with ing director of the Indian arm
Hindustan Times under a combo offer of Dalton Strategic Partnership
look for inflows continues to
look good as interest rates in
the developed world are ex-
pected to remain low. Even
TURN TO PAGE 4®

create dependency. His rhetorical question that have equal authority at the high table.

MY VIEW | MODERN TIMES

There has never been a worse time to be famous in India

actors shooting a scene. They were never
MANU JOSEPH dragged to court and never arrested.
Many of the joys of fame have survived
today. Even so, all things considered, our age
is the worst time to be famous, especially in
India. I know I am making it look as if fame is
bers in the follower count of Instagram or segment of people, a consequential mob of they have employed to entertain them at all
particles that orbit stars; they are a fluid inconsequential individuals who can be very times, and never offend through words or
dynamic mob with wounds and sentiments dangerous to the famous, especially when actions. As a result, every star is doomed to
and opinions. real stars are in some trouble. be political, forever a prisoner to his base.
As the influential health evangelist and For the first time in India, the famous do Many generations of Indians have heard
author Tim Ferris, who once was desperate not have power that is proportionate to their their parents say that the rich are unhappy.

M
any years ago, when my friend and
I were returning from school, we
decided to reject fame when we
grew up. Our reasoning was that ordinary
people, including us, said such horrible
things about the famous, and we could not
bear the thought of millions of people saying
nasty things about us. I was not very sure,
an option that you volunteer for. I am aware
that stardom is a lottery. But it is a bad toss to
win today.
Take, for instance, what’s going on in the
Hindi film industry. If you have not been fol-
lowing Indian news, you will not find the
next sentence logical: An actor killed himself
and a small group of almost-famous actors
to be famous, noted, “…you don’t need to do fame, even in their own domains. As film- My mother used to tell me this pointing at
anything wrong to get maker Anurag Kashyap passing cars, especially at women in sleeve-
death threats, rape threats, pointed out a few weeks less blouses. It was a lie. In fact, until recent
etc. You just need a big Both the value ago, there was a time when times, it was a golden period for the rich. It
enough audience.” a doyen of the film industry was much cheaper then to be wealthy and
Not long ago, there were and power of could ruin a career; but no what one got in return for being among the
things only celebrities one has that sort of power top 1% was a degree of luxury, influence,
could do. They stood on a
mass-market anymore. As a result, it is respect and debauchery that is extremely

is a journalist, and a novelist,

though; I slyly whispered to the universe
that I was open to becoming a superstar.
most recently of ‘Miss Laila,
Armed And Dangerous’
The vast benefits of fame were obvious to
me. The individual fan who begged for an
autograph was an inconsequential pest; a
star enjoyed at all times the reaffirming ado-
ration of the nameless millions who were far
away in their own dimensions, who could
never scale the high walls of the giant man-
sion granted by stardom. When stars did
appear in real life, which was rare, the people
of Madras had no doubt over their own
role—to be servile, which was the only way
they knew to show respect. The famous
almost never faced the risk of sharing the
same space as the masses, unless they were
have accused superstars of discrimination,
then abetting suicide, then abetting murder,
and then of either taking drugs or dealing in
them. Television channels found in this
issue an easy way to get attention, or to
achieve the political ends of their promoters.
When trouble breaks, the famous have no
human rights, precisely because they are
famous. They are superhuman in good times
and subhuman in bad times. One actress is
even in jail right now for reasons we do not
fully understand.
People still adore the famous and they do
beg for selfies in public spaces, but as a col-
lective crowd, they are not as innocuous as
they were before. They are not merely num-
pedestal and talked, and
everyone listened, and
fame have very easy for the underdog
today to look valiant and
expensive today. Today, what fame can buy
has depreciated much more than what
when someone died, they
conveyed their condolence
depreciated appear as if he or she is tak-
ing on the mighty, while in
wealth can buy.
The famous are, of course, rich. But their
because their words mat- to the point of reality they face no sub- wealth is so often modest compared to their
tered to the grieving. But stantial risks. And the easi- fame. Even so, this modest wealth is tied to
now, everyone has a plat- being dud assets est way for an incompetent their fame, as a result of which they seem
form, everyone is famous government machinery to trapped in a mildly abusive relationship with
to five people; as a result, appear to be doing its job is their base until they mercifully age and are
everyone behaves like a celebrity. They even to go after the famous—for drugs, sexual cast away.
convey their condolences to a departed pub- immorality or financial impropriety. Today, the luckiest form of success is to be
lic figure, even though no one cares for the Just as the stars perceive their fans as a somewhat known only in your narrow
“RIP” of the anonymous. But this new equal- conceptual human swarm and not as indi- domain, and be adored only by the class,
ity, a sort of hyper non-electoral democracy, viduals, the crowds today perceive the community or club whose adoration matters
has unconsciously made them look at proper famous as a small swarm and not as individ- to you. And amass wealth that is dispropor-
celebrities as competition. So there is a huge ual humans, a small beautiful swarm that tionate to your modest fame.
 VIEWS MONDAY, 28 SEPTEMBER 2020
NEW DELHI 15
V EWS
MY VIEW | THE INTERSECTION M I N T C U R AT O R

Heed Napoleon’s words as China

fancies its odds of taking Taiwan
It is in India’s interest not to distract Beijing from stumbling into a military confrontation that would bog it down in the east

ISTOCKPHOTO

Warriors graduate to elderly status in Maasai society. ISTOCKPHOTO

The grand feast of a graduation bash in Kenya

T housands of Maasai men clad in red and purple shawls and with their heads
coated in red ocher gathered this week for a ceremony that transforms them
from Moran (warriors) to Mzee (elders). Around 15,000 men from all over Kenya
and neighboring Tanzania congregated in Maparasha Hills in Kajiado County, 128
NITIN PAI kilometers from Nairobi, to feast on an estimated 3,000 bulls and 30,000 goats and
is co-founder and director of The Takshashila sheep. The ceremony occurs once every decade at the site, which is surrounded
Institution, an independent centre for research by hills and dotted with acacia trees. On Wednesday, the men roasted the meat on
and education in public policy beds of coal from acacia trees, holding staffs and swords. “I used to be a Moran, But
after this ceremony, I now graduate to be a Mzee (elder),” Stephen Seriamu Sarbabi,
a 34-year-old livestock trader, told Reuters.
CNN

T
he ongoing confrontation between
Indian and Chinese troops along the
Himalayan frontiers is serious, but
pales in comparison with the situation
across the Taiwan Strait. Over the
weekend of 18-19 September, China’s
People’s Liberation Army Air Force (PLAAF) and
Navy (PLAN) flew 37 aircraft—including fighters
and bombers—across the centre line that has
served as the informal boundary between the
mainland and Taiwan. One of the intruding pilots
declared to Taiwanese defenders on the radio
that “there is no median line in the Taiwan Strait.”
Beijing’s intrusions coincided with and were cer-
tainly a reaction to a US state department official’s
visit to Taipei. As an intimidatory tactic, China’s
move is highly risky. One miscalculation by a pilot
or an air defence operator could spark a conflict
that could well draw in the United States and its
allies into a bigger war.
The Taiwan Strait, followed by the South China
Sea, constitute the two biggest flashpoints in the
world today. That Xi Jinping’s regime is prepared
to take such risks at this time indicates where Bei-
jing’s political priorities and military preparations
lie. Preoccupied as we are with the Himalayan
theatre, it is important that India’s strategic com-
munity pays greater attention to the Taiwan Strait
as we search for a way to deal with China in the
coming months and years. It is not in our interest—
to paraphrase Napoleon—to distract an adversary
heading towards a big mistake.
That Beijing has its eyes on Taiwan after stamp-
ing its authority on Hong Kong is not a surprise.
The leaders of the Communist Party of China
(CPC), from Mao Zedong to Xi Jinping, have been
clear in word and deed that their main foreign
policy goal is to retake Taiwan. Great nations tend
to have enduring objectives. Only the means of
pursuing them change over time and according to
circumstances. As Xi Jinping put it in January
2019, “The country is growing strong, the nation is
rejuvenating and unification between the two
sides of the strait is the great trend of history.” Even
so, Beijing’s desire and determination have to con-
tend not only with those of the people of Taiwan,
but also with the balance of power.
Unfortunately for Beijing, just as it is acquiring
the military power to mount a successful invasion
of Taiwan, the will of the Taiwanese people is
shifting decisively towards formal independence.
While Beijing might well have acquired the capa-
bility to successfully land troops in Taiwan and
also keep US forces at bay, its military hardware
will be ineffective against a population 67% of
which identifies itself as “Taiwanese” and not
“Chinese”. This number was a mere 17.6% in 1992,
when the National Chengchi University first con-
ducted this survey. This explains why an inde-
pendence-minded Tsai Ing-wen won Taiwan’s
presidential election this year, defeating the pro-
reunification Koumintang’s candidate by a land-
slide. As BBC’s John Sudworth writes, “Had the
Communist Party not turned up the pressure on
Taiwan, had its approach to the crisis in Hong
Kong been subtler, the path to victory for a candi-
date it wanted so much to thwart may have been
much less certain.”
The military balance might have shifted towards
Beijing, but it is by no means certain that the
People’s Liberation Army can sufficiently over-
power Taiwanese defences. That’s not counting a
potential intervention by US forces on the latter’s
behalf. And even if the People’s Liberation Army
manages to land troops on the island, it will be hard
pressed to hold a population of 23 million—over a
million of whom have military training—against its
wishes. It is one thing for Beijing to strong-arm
Hong Kongers, Uyghurs and Tibetans into submis-
sion. It is quite another to attempt this in Taiwan,
which is politically, culturally, geographically and
militarily a very different story. Demographic
trends are turning Taiwanese opinion further
away from “unification” in any form. For this rea-
son, it is entirely possible that hubris, calculation
and domestic political expediency will cause Xi to
risk a forced re-unification now rather than later.
Beijing might calculate that its accumulation of
missiles, fighter aircraft, submarines and surface
combatants will deter Washington from joining
the conflict in Taiwan’s favour. Yes, an invasion
of Taiwan will be messy and bloody today, but even
messier and bloodier tomorrow. China’s leaders
could well start a war if they see their grand historic
objectives permanently slipping away. This is not a
hypothesis. They have said so for decades.
All that is needed for war to break out is a trigger,
which Beijing can put in Taiwanese hands by
carrying out aggressive sorties across the Strait,
forcing the other side onto a state of high alert.
Some analysts argue that the US can deter such a
war if it were to shed “strategic ambiguity” and
declare it will defend Taiwan if China invades.
However, such a move on Washington’s part could
itself prompt the war it seeks to avoid. In any event,
it is quite likely that a military conflict will not end
in a way that Beijing would like, but that does not
mean China’s leaders will not start one. As I have
previously argued in these pages, the strategic
acumen of the men in Beijing has been consist-
ently overrated.
Seen from a narrow perspective of self-interest,
New Delhi should not distract China from getting
into an energy-sapping quagmire over Taiwan.
Border negotiations with Beijing are likely to be in
a very different mood if conducted at a time when
Chinese forces and economic resources are tied
down in the East. It may be a good idea to heed
Napoleon’s famous dictum.
A tiny Rubik’s Cube is selling for $1,900 in Japan
A tiny but playable Rubik’s Cube, so little it fits on your fingertip, has gone on
sale in Japan for 198,000 yen, or about $1,900, for delivery starting in Decem-
ber. Billed as a “super-small” Rubik’s Cube, it was created to mark the 40th anniver-
sary of when the original 3-D puzzle went on sale in Japan. The cube measures just
9.9 millimeters, or O.39 inch, by 9.9 millimeters, and weighs 2 grams (less than a
tenth of an ounce). It’s made of “ultra-precision metal,” and comes with a box for
its display, according to MegaHouse Corp., a subsidiary of Tokyo-based toymaker
Bandai Co. Orders began Wednesday, only by credit card. Rubik’s Cube was
invented by Hungarian architecture professor Erno Rubik in the 1970s. A U.S. com-
pany turned it into a hit product in the 1980s.
AP
Landmine detection rat wins award for bravery
A landmine detection rat has been awarded a gold medal for his “lifesaving brav-
ery and devotion to duty”. Magawa, a giant African pouched rat, has discovered
39 landmines and 28 items of unexploded ordnance in Cambodia since he was
trained by charity APOPO. He is the charity’s most successful Hero Rat, having
cleared more than 141,000 square metres of land—the equivalent of 20 football
pitches. Magawa has been formally recognised for his work and been presented
with a miniature PDSA Gold Medal, the animal equivalent of the George Cross. He
is the first rat in the charity’s 77-year history to receive such an award. Christophe
Cox, chief executive of APOPO, said: “To receive this medal is really an honour for
us. I have been working with APOPO for over 20 years.
The Guardian
Don’t get addicted to liquorice: It could kill you
A construction worker in the US state of Massachusetts was killed by his liquor-
ice habit, doctors say. The man, who has not been named but was 54 years old,
ate about one-and-a-half bags of black liquorice every day. He had suffered no
symptoms before suddenly going into cardiac arrest in a fast food restaurant.
Describing the man’s case in the New England Journal of Medicine, his doctors said
the glycyrrhizic acid in liquorice was to blame. “We are told that this patient has a
poor diet and eats a lot of candy. Could his illness be related to candy consumption?”
Dr Elazer R Edelman said. He said studies had shown glycyrrhizic acid—the active
ingredient in liquorice—could cause “hypertension, hypokalemia, metabolic alka-
losis, fatal arrhythmias, and renal failure”—all of which were seen in this patient.
BBC
Remains of Jurassic predator found in Atacama
S cientists have unearthed the remains of Jurassic sea predators resembling killer
whales in the world’s driest desert in Chile. Pliosaurs were reptiles from about
160 million years ago with a more powerful bite than Tyrannosaurus rex, according
to University of Chile researchers. The fossils are the second oldest record of this
species in the Southern Hemisphere. Chile’s vast Atacama desert, once largely sub-
merged beneath the Pacific Ocean, is now a moonscape of sand and stone with parts
untouched by rain for years. Pliosaurs reined the region, with their large skull, elon-
gated face, short neck, menacing teeth on a hydrodynamic body and fin-like limbs.
Scientists found jaw, tooth and limb fragments of the creatures “ecologically simi-
lar” to killer whales at two sites in the Loa river basin near the mining city of Calama.
Reuters

MY VIEW | GENERAL DISEQUILIBRIUM

A prenuptial pact for marriages made in boardrooms

Tata Group’s holding company, goes back
RAJRISHI SINGHAL many decades when patriarch Shapoorji Pal-
lonji Mistry bought a substantial 12.5%
chunk in Tata Sons from the heirs of Fram-
roz Edulji Dinshaw, a Mumbai land-owner
and also investment adviser to the Scindias,
mutually beneficial: Chhabria’s presence
helped R.P. Goenka avoid questions of
monopoly (he had already acquired Ceat
Tyres) and Goenka’s proximity to Indira
Gandhi and then West Bengal chief minister
Jyoti Basu facilitated Chhabria’s manage-
regulators found Rana Kapoor’s manage-
ment style risk-prone and investigative
agencies found enough reasons to arrest
him. The unfortunate outcome is that the
bank now belongs to neither branch of the
founding families.
There was no public falling out.
India’s two largest industrial empires—
Birlas and Tatas—also had an unwritten
understanding. The Birlas, through their
holding company Pilani Investments,
nursed a large stake in Tata Steel (then called

I
t is now becoming increasingly evident
that while marriages for ordinary mortals
might be made in heaven, corporate wed-
lock solemnized in boardrooms usually end
up on the rocks. But the corporate sector can
draw lessons from real life: Like pre-nups
between life partners, business associates at
the altar must also have some legal arrange-
erstwhile royal family of Gwalior. Over time, ment of the company. However, in the But it is not always necessary that all part- Tata Iron and Steel Company), which
through further acquisitions and subscrip- absence of an agreement nerships end in rancour or remained substantially larger than the Tata
tion to rights issues, the stake climbed to or a legal framework for public display of petulance. shareholding for many years. This was part
18.4%. Although the Mistry family got a managing the partnership, Agreements Unbeknownst to many, of an agreement between J.R.D. Tata and
board seat—which went to Shapoorji Pal- differences between man- the Scindias of Gwalior G.D. Birla, fellow travellers from pre-inde-
lonji’s son Pallonji Mistry—and played a agement styles quickly based on were equal shareholders pendence days and co-architects of the
largely non-interventionist role, things emerged and the partner- with the Wadias in the famous 1944 Bombay Plan. It was around
changed when Ratan Tata selected Pallonji ship soon went south.
principles may Bombay Dyeing group. then that Pilani Investments picked up a

is a policy consultant, journalist

ments to guide future splits. Most companies
do have shareholder agreements between
and author. His Twitter handle
is @rajrishisinghal.
partners, yet partings are rarely amicable
because much is left to chance.
Witness the bombshell dropped by the
Shapoorji Pallonji group in the Supreme
Court recently, stating it wished to exit the
Tata Group by selling its stake in Tata Sons.
The SP Group’s sale of its Tata Sons stake is
weighed down by multiple uncertainties,
but the Mistry family’s publicly-stated desire
to sever ties with the Tata group marks the
nadir of a decades-old relationship. The two
sides have locked horns in courts of law, and
any rapprochement now seems impossible.
The Mistry family stake in Tata Sons, the
Mistry’s son Cyrus Mistry as Tata Sons chair-
man. Cyrus Mistry’s style allegedly clashed
with Ratan Tata’s vision, leading to his
ouster and its subsequent challenge in the
courts. What emerges is the fact that despite
the decades-old association, there was no
agreement between the two largest share-
holders on how to survive, or resolve, future
acrimony.
Another similar partnership that did not
survive—and was comparatively much more
short-lived—was the joint acquisition of
Dunlop by R.P. Goenka and Manu R. Chha-
bria. The reasons for the joint acquisition are
not known, but speculation has it that, apart
from joint financing, the purchase was
Chhabria had to eventually
buy out Goenka.
help avoid They had a 50% sharehold-
ing in the group holding
stake in Tata Steel as a pure investment,
though it was later also re-defined as a foil
In recent times, Yes
Bank—started by brothers-
the unseemly company Nowrosjee
Wadia and Sons Ltd,
against hostile takeover by third parties. Yet,
despite that large stake, the Birlas stayed
in-law Rana Kapoor and acrimony of through which the Wadias non-interventionist till they sold their 6.3
Ashok Kapur (both are now control Britannia, million shares in 2012-13. There was had no
married to two sisters)— corporate splits Bombay Dyeing and Manu- written document, only a verbal under-
ran into partnership and facturing, Bombay Burmah standing between two gentlemen, but one
succession issues. Ashok Trading, National Peroxide that later generations largely honoured.
Kapur’s untimely death in the 2008 Mumbai and GoAir. But when Madhavrao Scindia, It takes a lot to stay the course, given the
terror attacks precipitated demands from his father of Jyotiraditya Scindia, became a min- Indian business landscape’s vicissitudes and
family members for a board seat, which Rana ister in P.V. Narasimha Rao’s government of the accompanying regulatory volatility. The
Kapoor, who was managing director and 1991-96—first as minister for civil aviation trick might be to hammer out agreements
CEO, rejected. This led to court cases, public and tourism, and later as minister for human bound by principles, which can be timeless,
airing of soiled laundry and much bitterness development—both sides decided to end the rather than specific rules that can become
on both sides of the family. It didn’t help that partnership in a dignified and civil manner. obsolete over time.
NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 14 NO. 234 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR)

FORMER UNION MINISTER HERD IMMUNITY IS STILL FAR

MONDAY, SEPTEMBER 28, 2020 JASWANT SINGH DIES AT 82 uP8 OFF, SAYS HARSH VARDHAN uP10
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