MONDAY, 20 JUNE 2022

16 pages in 1 section
www.business-standard.com
NEW DELHI
~11.00
VOLUME XXIX NUMBER 46

How markets performed last week

% chg over Dec 31, ‘21
Index on *One- --————————————————————————————————————————————————————————

June 17, ‘22 week Local currency in US $

Sensex 51,360 -5.4 -11.8 -16.1
Nifty 15,294 -5.6 -11.9 -16.1 COMPANIES P3 WORLD P8
Dow Jones 29,889 -4.8 -17.7 -17.7
Nasdaq
Hang Seng
Nikkei
10,798
21,075
25,963
-4.8
-3.4
-6.7
-31.0
-9.9
-9.8
-31.0
-10.5
-23.1
GOODBYE TO PETROL 2WS BY ’25! OLA BITCOIN PLUNGES BELOW $18K
FTSE
DAX
7,016
13,126
-4.1
-4.6
-5.0
-17.4
-14.2
-23.7
BUILDING CORE TECH FOR E-CARS IN RECORD-BREAKING ROUT
*Change (%) over previous week Source: Bloomberg P U B L I S HE D S I MU L T A N E O USL Y F R O M AH M E D AB AD , B E NG AL UR U, B H UB ANE SW AR , CH AND I G AR H , CH E NNAI , H Y D E R AB AD , KOCHI, K OL K ATA, L UCK N OW , MUMBA I (AL SO P R IN TE D IN BHOP AL ), N E W DE L HI AN D P UN E

MILITARY SAYS CENTRE’S

AGNIPATH HERE TO STAY; Irdai mulls linking ‘In 5 years, we’d like to be
RECRUITMENT IN AUG
No. 1 in bancassurance’
Downplaying the violent protests against
the Agnipath recruitment scheme that
continue to rock Uttar Pradesh, Telangana,
and Bihar, the Ministry of Defence (MoD) on
insurance fraud Life Insurance Corporation of India (LIC) hit the market with its initial public offering (IPO)
just over a month ago. Since then, the value of the insurance behemoth’s shares has
Your retail APE (annual premium
equivalent) and total APE market

with credit score

Sunday fielded the military’s top manpower
planners in a press conference to send out
the message: “Agnipath is here to stay”. The
generals spelt out a recruitment schedule
that made it clear it was too late to
backtrack on this scheme.
EDIT: PERSISTENT PROBLEM
ON
eroded significantly. In an interview, LIC’s Chairperson M R KUMAR talks to SUBRATA PANDA share is around 40 per cent. Is it
on a range of issues — from the reasons for the stock’s underperformance to whether the possible for LIC to regain some
IPO could have been timed better. Edited Excerpts: market share from private players?
Between March 2020 and 2022,
LIC’s shares were listed at ~875.45 Looking at the stock’s performance, there were a lot of Covid-related dis-
6> Studies show 10% of premiums lost due to frauds globally apiece and they are now trading at
~654.70 (Friday’s closing price),
would you say the IPO was rushed?
We were in the middle of road-
ruptions, but we still managed to
sell over 20 million policies. Our
P9 NIKUNJ OHRI down around 25 per cent. What shows when the war [in Europe] overall market share rose from 61
New Delhi, 19 June explains this erosion? started, and at that time we did per cent to 65 per cent in a four-
The markets have been very volatile pause for a moment. But then we month period.
T
he Insurance Regulatory and for some time now. We are not very saw a window of opportunity and

SPECIALS
MONDAY Development Authority of India
(Irdai) is considering a proposal to
sure whether that has got
factored into the share
launched the public issue.
Had we delayed it, we would ‘WE’D LIKE TO
make insurance frauds a parameter price. We firmly believe have had no visibility as to
CONTINUE TO
BANKER’S TRUST for calculating credit scores in an attempt to
put a lid on the increase in such activity.
IN THE that once the market stabil-
ises our inherent strength
when the next window
M R KUMAR, would arrive. Markets, both HOLD A GOOD
The story behind the choice
of RBL Bank CEO
The proposal, which is a part of the rec-
ommendations made by a working group
WORKS and performance will get
recognised and the share
Chairperson,
LIC
globally and locally, had
become very tough. We
STAKE IN
IDBI BANK’
Does this smack of the regulator’s lack of formed by Irdai and the General Insurance price will move up. The decided to launch the issue
confidence in the bank’s board? Featuring of individuals’ previous PAGE 4
Council, suggests that insurance frauds float may appear small, but there is and I am really thankful to the poli-
TAMAL BANDYOPADHYAY writes 15 > should feature when the risk profiles of indi- frauds in risk profile to affect enough in terms of volume and cyholders and employees, who
viduals are evaluated and should be used to credit score once the delivery occurs on a regu- stepped up to contribute.
STATSGURU calculate their credit scores. lar basis, I think it will improve.
Employment conundrum 15 > A poor credit score can deprive a person Proposes amendment to Credit
of financial services such as loans and credit Information Companies (Regulation)
cards, and deter him from indulging in fraud. Act, 2005, Credit Information Companies WE FIRMLY BELIEVE THAT ONCE THE MARKET
While making a case for this proposal, the Regulations, 2006, and Credit STABILISES, OUR INHERENT STRENGTH AND
working group said a fraud attempt on an Information Companies Rules, 2006 PERFORMANCE WILL BE RECOGNISED Illustration:
Ajay Mohanty
insurance company can be replicated with
other financial institutions, too. Insurance companies may have to
The proposal is being considered by the share and update data on frauds with
insurance regulator, as such frauds have been credit information companies on a RIL MAY FOCUS ON CONSUMER CUSTOMERS WILL SEE LOWER
costing insurers dearly, with some estimates monthly basis
pegging their losses at over ~45,000 crore a BUSINESS IN AGM: ANALYSTS DISCOUNTS THIS SALES PERIOD
year. This has prompted insurers to jack up Credit information company may have The 45th annual general meeting (AGM) This end of season sale period, shoppers will find less stock on
premiums for customers to offset such losses, to collect information on fraudsters, of Reliance Industries (RIL) may be held discounts and lower discounts. Also, the
the working group has said. such as policy, premium, agent, among in the next few weeks with some duration of the sale period is expected to be
Scan to Open With more insurance penetration in the experts believing the company may lower. Retailers said more stock is moving
others
FREE Demat country, and the government’s push to insure revive plans of an oil-to-chemicals off their shelves at full price due to which
Account every citizen, fraudulent and suspicious activ- Rationale for move is that fear of poor (O2C) demerger, which was they are offering lower discounts and
ities have risen phenomenally, and need inter- credit score will deter people from shelved last year. shorter sales period. Sharleen D'Souza
vention, the group added. Turn to Page 6 > committing insurance frauds Viveat Susan Pinto writes 2> & Peerzada Abrar write 3>

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 2 COMPANIES
>
NEW DELHI | MONDAY, 20 JUNE 2022

SpiceJet’s engine Zilingo founders join hands to buy out firm

catches fire mid-air, Under the proposal, the investor group will inject $8 million in new equity in a newly-incorporated entity in tranches
BLOOMBERG said. missal of co-founder Ankiti the offer statement said.

makes emergency 19 June

Zilingo co-founders made a

Under the preliminary
proposal, the investor group
will inject $8 million in new
Bose as chief executive officer
in May.
Sequoia Capital, which
The new investor group is
willing to negotiate grant of
equity in the proposed new

landing in Patna last-ditch offer to buy the

embattled fashion e-com-
merce platform as the board
debates its future, according
to people familiar with the
matter.
Co-founder Dhruv Kapoor
on Sunday proposed a man-
agement buyout to the
Singapore-based company’s
board, according to the
people, who asked not to be
named as the matter is pri-
vate. He has secured commit-
Passengers come out of the SpiceJet airplane following its ments from a small group of
emergency landing after it caught fire mid-air, at Jai Prakash new investors including a US
Narayan airport in Patna, on Sunday PHOTO: PTI private equity firm, the people
equity in a newly incorpo-
rated entity in tranches, while
the remaining assets and the
owns 26.5 per cent in Zilingo
declined to comment on the
story.
entity to existing shareholders
of Zilingo on a mutually
agreed basis, according to the
old corporate entity will be Kapoor's offer stated that offer.
liquidated in due course, Zilingo's subsidiaries, assets, The offer also proposed a
according to Kapoor’s email debt obligations, contracts new five-year business plan
sent to investors and seen by and key employees of verti- for Zilingo, which needs to be
Bloomberg News. All out- cals will be bought out by the agreed upon among the inves-
standing debt owed to cred- new company. tor group, the new proposed
itor Zorro Assets will be frozen According to the offer, entity and existing share-
for three years, according to Co-founder Dhruv Kapoor (right) proposed a management there will be a 36-month mor- holders of Zilingo.
email. buyout to the company’s board. Earlier, allegations of financial atorium on the repayment of Confirmatory due dili-
The move comes as irregularities led to the dismissal of CEO Ankiti Bose (left) the debt by the new company gence should be completed in
Zilingo’s board is scheduled to and repayments will happen seven calendar days if and
meet on Monday to discuss knowledge of the matter. an investigation into the com- in four quarterly installments once the management buyout
the future of the company, Allegations of financial irreg- pany, valued at $970 million after the moratorium. Lenders offer is accepted, the investor
according to people with ularities in March prompted in 2019, and led to the dis- will remain senior in priority, group said in the offer.

A Delhi-bound SpiceJet Boeing 737 aircraft made an emer-

gency landing at the Patna airport after a bird hit one of its

RIL may focus on consumer COAI calls for

engines. The plane, with 185 passengers and six crew
members, landed safely five minutes after take-off from
Patna after the pilots shut down the affected engine and
alerted air traffic control. Civil aviation regulator DGCA has

tough norms
confirmed that a bird hit led to the failure of Engine 1 on the

business in AGM: Analysts

Patna-Delhi SpiceJet aircraft, which was forced to make an
emergency landing at Bihta Airforce Station in Patna after
its left wing caught fire. “During take-off, the cockpit crew

for non-public
suspected a bird hit one of the engines. As a precautionary
measure and as per SOP, the pilot shut down the affected
engine and decided to return to Patna,” the airline said. In a
similar incident, a Delhi-bound IndiGo was forced to return
Experts expect firm to make further announcements in green energy

networks
to Guwahati airport due to a bird hit on Sunday morning. VIVEAT SUSAN PINTO Last year, RIL, among the
The aircraft was at 1,600 feet when its left engine suffered a Mumbai, 19 June largest fossil-fuel companies in
bird hit. The pilot shut down the engine according to the the world, had set out to tran-

T
checklist and returned to Guwahati. Meanwhile a SpiceJet he 45th annual gen- sition into a green energy com-
flight, going to Jabalpur, returned to Delhi due to issues eral meeting (AGM) pany by announcing it would SURAJEET DAS GUPTA
with its cabin pressure. The problem was detected as the
aircraft was climbing to its cruise altitude.
of Reliance
Industries (RIL) may
invest ~75,000 crore ($9.62 bil-
lion) in the sector.
New Delhi, 19 June
DOT COMMITTEE
While the pilots suspected a bird hit, but they continued be held in the next few weeks “We are launching a new The Cellular Operators ON LICENCING
the climb as the sensors inside the aircraft, didn’t give any with some experts believing energy business with the aim Association of India (COAI)
indication of engine fire. It was after the cabin crew noticed the company may revive plans of bridging the green energy has demanded imposition of REFORMS TO
smoke billowing out from the engine that the pilots decided
to turn back.
of an oil-to-chemicals (O2C)
demerger, which was shelved
divide within India, and
globally,” RIL chairman and
tough conditions for allowing
enterprises to set up “captive
SUBMIT REPORT
Bird hits are fairly common as airports are situated in last year. managing director (MD) non-public networks”. BY MONTH-END
urban areas. The case is higher for India as most of the cities The company may also Mukesh Ambani had said at The move comes just a few The telecom department is
suffer from improper waste management and open drains spell out its future plans for the AGM, held virtually. days after the Cabinet, despite moving ahead in full stream
attracting stray birds. According to data from DGCA, there the retail and telecom busi- KEY ANNOUNCEMENTS IN This year may see the com- opposition from telcos, per- towards ushering the next
were 1,466 bird strike incidents and 29 animal strike inci-
dents in 2021 across Indian airports. The DGCA, in a 2018
nesses that operate as sep-
arate units, namely, Jio
LAST FIVE RIL AGMS pany press the accelerator
button as rival Adani extends
mitted enterprises to set up
private networks, with the
round of reforms in the
sector and a committee, set
circular, had said that the presence of wildlife on and in Platforms and Reliance Retail July 21, 2017 of JioFibre on commercial its partnership with department of telecom (DoT) up to make suggestions on
vicinity of an airport poses a “serious threat” to aircraft oper- Ventures, respectively. It Company announced launch basis TotalEnergies. Last week, the assigning them spectrum licencing reforms, is
ational safety. could also make further of Jio Phone with refundable two had agreed to invest $50 directly. In a letter to DoT sec- expected to submit its report
While most of the bird hits happen with the aircraft’s announcements in green July 15, 2020 billion over the next 10 years retary K Rajaraman on June to the Department by the
deposit Company said it had
body leading to minor damage, but if the engine is damaged energy, sector, experts said. in India to produce green 18, the COAI demanded non- month-end, a senior official
due to this, it may lead to smoke and fire as fuel will leak “RIL had decided against July 5, 2018 developed 5G solution; bet hydrogen. assignment of spectrum in the said. Even as hectic
out. In such cases pilots shut down the impacted engine proceeding with the demerger Company announced on new commerce As part of the plan, non-International Mobile preparations are on in the
and land at the closest airport. Modern passenger aircraft of its oil-to-chemicals business exchange of feature phone TotalEnergies would buy 25 Telecommunications (IMT) DoT for the upcoming
are built to operate even with a single engine. BS REPORTERS last year. But the company June 24, 2021 per cent in a new clean energy (5G) bands reserved for telcos. spectrum auctions, work on
with Jio Phone Company laid out new energy
could revive the plan this year, company promoted by the It also made a demand for the second set of reforms is
given the favourable environ- August 12, 2019 blueprint with ~75,000 cr Adani group called Adani New restricting the scope of such going on in parallel.
+ IN BRIEF ment that prevails currently,” Company announced launch investment Industries to jointly build the private networks for only
G Chokkalingam, founder and Source: Company/Analysts world’s biggest green machine-to-machine (M2M)
AIR INDIA REORGANISING ITSELF managing director (MD),
Equinomics Research and
hydrogen ecosystem.
"I certainly think that green
communications and plant
automation within the prem-
from the third party players”.
If they want to do so they must
UNDER TATA GROUP: AIRBUS CCO Advisory, said. “While crude
oil prices have corrected after
likely," he said.
JP Morgan had said in its
nue and nearly 45 per cent of
Ebitda, according to its finan-
energy or renewable energy
would be on the cards in terms
ises of a plant. COAI also wants
to ensure that they have no
obtain the spectrum through
the same process as TSPs.
AirIndiaisclearlyreorganisingitselfunderthe"ablestewardship"oftheTata the Fed rate hike last week, June 16 report that it saw the cial results for the fiscal ended of key announcements at the connection to public switched The move — if imple-
Groupandwantstoinvestinnewplanestoregaininternationalpassenger tight supplies remain in focus. company offering no specific March 31, 2022 (FY22). RIL AGM this year," telephone networks (PSTN), mented — could keep out any
marketshare,theChiefCommercialOfficerofAirbussaidonSunday. Second, the demand for timelines with regard to list- FY22 also saw RIL surpass Chokkalingam said. "This internet cloud platforms, other competitors like global
Speakingtoreportersonthesidelinesoftheannualgeneralmeetingofthe refined products is rising ing of the telecom and retail gross revenue of $100 billion could be in the areas of solar another private network or tech companies Google,
InternationalAirTransportAssociation(IATA),ChristianSchererwasasked globally,” he said. businesses. (~7.9 trillion) on the back of its and wind energy as well as multiple offices and buildings. Amazon or IT companies to
whetherAirIndiahadfinalisedtheA350aircraft Last week, JP Morgan had "While higher oil and gross performance in the O2C, tele- green hydrogen," he added. COAI has also said that the provide the services. It would
orderwithAirbus."Iwillnotcommentonthat," said that RIL remained among refining margins are a positive, com and retail segments. New Last week a report by the spectrum assigned to end restrict the collaboration for
theChiefCommercialOfficeroftheEuropean the best positioned to address we expected the global tech sell- energy presents a further Institute for Energy users should not result in cre- enterprises only to a few telcos.
Aerospacecompanysaid.Hisremarkscameafterit the need for refined products off to impact RIL’s consumer upside for growth in the future, Economics and Financial ation of third parties or inter- In the letter, the telcos have
wasreportedlastweekthattheTataGroup-owned across the world. “RIL remains valuations (for telecom and analysts said. Analysis (IEEFA) had said that mediaries operating on behalf also said that use cases meant
AirIndiahasdecidedtoprocureitsmaiden among the best positioned retail) negatively. With likely In a recent report, Morgan investment in the renewable of the enterprise. for the masses cannot be part
batchofwide-bodiedA350aircraftfrom refiners globally, given its abil- higher average revenue per user Stanley had indicated that energy sector in India had The reason they said is that of a captive network. They have
Airbusandthefirstplaneislikelytobedeliveredto ity to buy and process arbitrage (ARPU) and further ramp-up of RIL was on the path towards surged over 125 per cent year- creation of third parties or argued that there has been
theairlinebyMarch2023. PTI barrels, a diesel-heavy slate its retail footprint, combined touching $20 billion in Ebitda on-year to touch a record $14.5 intermediaries installing and demand from many stake-
and an export focus,” the bro- with renewable business, the by the end of 2022, led by billion in the fiscal ended operating the network for pri- holders that captive networks
kerage said in its report dated non-energy business valuations high refining margins, tele- March 31, 2022. vate networks would “result in could create use cases for finan-
Sequoia asks court Will be happy if fare June 16. should hold up going forward," com revenue per user rising, Reliance and Adani, the backdoor entry for third cial inclusion and agriculture
to dismiss lawsuit caps are increased, Deven Choksey, MD at bro-
kerage KR Choksey, said share-
the brokerage said.
RIL derives close to 60 per
global gas market tightening,
rising traction on digital com-
report said, were amongst the
key contributors to this spike.
parties to act as telecom serv-
ice providers (TSPs) without
sector connectivity.
But telcos have demanded
by its former counsel says Vinod Kannan holders were keenly awaiting cent of its revenue and nearly merce and superior petro- Adani had picked up SB obtaining the spectrum that since financial inclusion
Sequoia Capital India has asked Vistara will be happy if the announcements on the com- 50 per cent of its earnings chemicals spread. The com- Energy, a renewable energy through the same process by design intends to include
a local court to dismiss a lower and upper limits on pany’s plans to unlock value in before interest, tax, deprecia- pany closed FY22 with a company, in a deal worth $3.5 (auctions) as TSPs.” 100 per cent of the population,
defamation lawsuit filed by one airfares are increased but the retail and telecom. tion and amortization (Ebitda) consolidated Ebitda of ~1.25 billion, in October last year. Therefore, like the unified and agriculture sector would
of its former general counsels, best solution would be for the “Shareholders will want to from its O2C business. This trillion ($16 billion). Around the same time, licensees, private network need interconnection of 70 per
saying it was an attempt to curb airlines to have absolute know how the company is includes refining, petrochem- The brokerage also said Reliance New Energy Solar, a owners “must own all equip- cent of the population, such
its free speech rights and harm freedom to price, its chief looking to unlock value in busi- icals and fuel retail. Retail and that the company's bet on subsidiary of RIL, had ment installed for the purpose use cases cannot be under-
its interests, the venture capital executive officer Vinod Kannan nesses such as telecom and telecom, on the other hand, green energy initiatives was a acquired REC Solar Holdings of private networks and not taken by captive
firm’s court filing shows.REUTERS said on Sunday. PTI retail and by when this is account for 34 per cent of reve- key monitorable for the future. for $771 million. obtain them on lease/rental networks.

‘Consumerisation’ will move the needle of diagnostics amortised,” analyses Shah.

SOHINI DAS
Mumbai, 19 June
India’s ~55,000-crore diagnostic sector - largely
dominated by unorganised players - is set for a
shift in dynamics. This is possible largely due to
the entry of online aggregators backed by
companies with deep pockets.
Price rationalisation and consolidation are
two key trends that will shape the industry in the
years to come.
From 15 per cent share, the share of organised
players is likely to rise to 25 per cent in three to five
years, observe analysts.
Industry players beg to differ.
Ravindra Kumar, vice-president and head,
Lupin Diagnostics, says consolidation will
happen, albeit over a longer horizon.
There is also likely to be a distinct move
towards ‘consumerisation’ of diagnostics.
Consumers will pick off-the-shelf wellness
packages or routine tests/check-ups.
Online players are likely to dominate the area
of ‘budget wellness’. National offline large
laboratory (lab) chains will control the
prescription diagnostics play.
Most players and analysts agree that prices will
remain competitive with the entry of new players.
Lupin has established its own chain of
diagnostic labs.
Tata acquired online pharmacy (e-pharmacy)
1MG and launched its own diagnostic wing.
After shaking up the telecommunications
sector with Jio, Reliance entered the world of
diagnostics. Its acquisition of e-pharmacy
Netmeds may well be that booster shot.
Thyrocare was bought by healthtech start-
up PharmEasy.
Medplus (a pharmacy retailer) has now
become aggressive in diagnostics.
ICICI Direct analysts say large hospital chains
have announced aggressive investment plans to
seize the opportunity.
“The modus operandi for them has been
predatory pricing to grab volumes quickly,” says
the brokerage.
SRL Diagnostics’ Chief Executive Officer (CEO)
Anand K, however, points out that price
differential has always existed. “Had price
differential been the only criterion to choose a lab,
the lowest-priced pathology lab would have had
the largest market share,” says Anand.
Competitive pricing, however, is here to stay,
feel analysts and some industry insiders.
Rahul Guha, managing director (MD) and CEO
of Thyrocare Technologies, which has largely
been a business-to-business (B2B) player, says
online diagnostic players will continue to offer
competitive prices to corner volume share.
“We have decided to retain Thyrocare as our
B2B brand, while PharmEasy will be our business-
to-consumer (B2C) play in diagnostics. We have
PharmEasy Labs now. We don’t want to play this
price game,” says Guha. He says the company will
instead focus on enhancing consumer
experience.
The top 10 cities in the country account for
nearly 50 per cent of the diagnostic business in
India, says Guha, adding that consumer-facing
packages are likely to do well in cities.
ICICI Securities says that pricing pressure will
remain in the near term, and incumbents can
Guha agrees somewhat. He says acquiring
diagnostics online costs around ~2,000-2,500,
while acquiring a customer for e-pharmacy is
SWALLOWING A BITTER PILL around ~700-800 per patron.
“We can then cross-sell our diagnostic
Dr Lal PathLabs Metropolis Healthcare
products, white labels, etc to the e-pharmacy
Thyrocare Technologies Vijaya Diagnostic Centre 5,000
customer. Aggregators will have a clear advantage
1,402.0 here,” he adds.
4,000
Where aggregators have a problem is to break
1,438.3 1,976.9 into the prescription diagnostic space, says Guha.
3,000
Smaller labs will increasingly find it difficult to
1,538.1 2,000 survive in this environment. They will either end
up closing down or getting acquired by a large
641.1 1,000
player — online or offline.
538.4 531.0 334.5 0 Kumar, however, points out that acquisition
Dec 31,’21 Dec 31,’21 targets may not come at the right price.
“The expectations are 15-16x the earnings
before interest, tax, depreciation, and
FINGER ON THE PULSE in ~ amortisation, and at that price, it may not be
Vijaya worth it. We have to also see if the collection centre
Dr Lal Metropolis Thyrocare Diagnostic has the automation, robust processes, and quality
(As of June 17) PathLabs Healthcare Technologies Centre assurance,” he says.
52-week high 4,243 3,579 1,466 673 Lupin has chosen to take the franchise route
for expansion. It targets 1,000 collection
52-week high date Sep 15, ‘21 Dec 30, ‘21 Jun 25, ‘21 Oct 25, ‘21 centres in the next four years and 100 labs
Current close 1,976.9 1,402.0 641.1 334.5 across the country.
Drop % -53.4 -60.8 -56.3 -50.3 Quality compliance is a scoring point for
Source Bloomberg/Exchange Compiled by BS Research Bureau
large labs.
Anand explains that of the 100,000 labs in
India, only 1,000 have the National Accreditation
either offer high discounts to secure volumes, Ameera Shah, MD and promoter, Metropolis Board for Testing and Calibration Laboratories
maintain their pricing or lose some volume. Healthcare, says, “Diagnostic test aggregators are (NABL) accreditation.
“This will impact near-term growth. This affecting the smaller players and not so much the “During the Covid-19 pandemic, this had gone
approach will be limited to high volume routine larger ones.” up to 2,500 labs. But many may not renew their
tests and will target the preventive segment, “They are attacking the budget wellness NABL accreditation,” he adds.
which is around 8-10 per cent of the total business and altering its dynamics. They are Kunal Randeria, analyst with Edelweiss, feels
industry,” it adds. acquiring a consumer and hoping he/she will that from a 15 per cent share currently, the share of
Large offline players feel that online order drugs online or sign up for telemedicine. organised players is set to rise to 25 per cent within
aggregators are affecting the smaller players more. Somewhere this cost of acquisition will be the next five years.

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 >
Goodbye to petrol 2Ws by ’25!
Ola building core tech for e-car
PEERZADA ABRAR
Krishnagiri, 19 June
L
ocated in Pochampalli town
in the Krishnagiri district of
Tamil Nadu and surrounded
by shoe factories, temples, bakery
shops, coconut trees, and dusty
roads is the newly built Ola
Futurefactory.
It takes over three hours of drive
and more than 130 km from the
technology (tech) hub of Bengaluru
to reach the world’s largest wom-
en-only factory. It is also being
expanded to become the largest
two-wheeler factory in the world
with an annual production capac-
ity of 10 million units, contributing
to one of every seven two-wheelers
sold in the world.
Inside, the hangar-like building
reverberates with grinding metallic
sounds as robots work alongside
humans, with songs like Blinding
Lights by The Weeknd playing in
the background. The
Futurefactory, spread over 500
acres, or about 378 football fields,
is a fully automated plant. The
facility, built on Industry 4.0 prin-
ciples, has more than 3,000 robots.
SoftBank-backed Ola said it
uses proprietary artificial intelli-
gence for optimal performance.
One can see many robots moving
autonomously, carrying loads from
one location to another on the fac-
tory floor. There are also robots
working on key manufacturing
process lines like painting and
welding, as well as battery and
motor assembly. “This factory was
built in seven months in the thick
of the Covid-19 pandemic,” says
Bhavish Aggarwal, founder and
chief executive officer, Ola,
addressing 3,000 customers visit-
ing the factory.
Currently, the factory produces
1,000 electric scooters per day.
There are over 2,000 women
employees at the factory. These
women are trained and employed
to run the entire production cycle
– from battery to assembly.
At full capacity, Futurefactory
will have a workforce of 10,000
women. “Right now, we have the
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NEW DELHI | MONDAY, 20 JUNE 2022
Ola S1 Pro product in the market.
We are working on a few other pro-
totypes,” he says.
Aggarwal recently stepped back
from day-to-day operations to
focus more on engineering func-
tions, team building, and products,
apart from focusing on long-term
strategic projects, such as two-
wheelers, cars, and innovations in
quick commerce and international
expansion. The other strategic pro-
jects include cell research and
development (R&D), building the
Pune tech centre, and
Futurefoundry UK. “Over the next
two years, you will see many two-
wheeler roll-outs. We are also
building an (electric) car,” says
Aggarwal, who also gives a sneak
preview of a red electric car.
It is likely to be a large sedan
and not a compact hatchback for
intra-city use.
“We are also building the core
tech behind that - which is the cell.
All of this is being built in India. I
believe that by the end of 2025,
India will not be selling any petrol
two-wheelers,” he says.
Aggarwal says his mission is to
help India get on the world stage
of the electric revolution. There are
many top companies innovating in
this space like Elon Musk’s Tesla
and a slew of US and Chinese firms.
Most of these top companies,
including Tesla and NIO Inc., are
focusing on premium and luxury
market products, according to
experts. “The reason India is going
through this electric mobility wave
are the consumers. They have
wholeheartedly rejected petrol and
THE REASON THAT
INDIA IS GOING
THROUGH THIS EV WAVE IS
THE CONSUMERS... WOULD
YOU BUY A PETROL SCOOTER
AGAIN? NO. OUR VISION IS TO
REALLY PUT INDIA ONTO THE
GLOBAL MAP OF
ELECTRIFICATION”
BHAVISH AGGARWAL
Founder and CEO, Ola
adopted an electric future,” says
Aggarwal. “Will you buy a petrol
scooter again? No. Our vision is to
put India on the global map of elec-
trification,” he adds.
However, Aggarwal is sharing
these plans at a time when the
company has been in the news for
all the wrong reasons. Recently
safety concerns were heightened
when an Ola electric scooter
recently burst into flames in Pune.
Many customers have been com-
plaining about the scooters, lead-
ing to greater scrutiny of electric
vehicles. Customers have also
reported frustration related to
delays in deliveries and a few tech-
nical glitches. The firm has said it
is ramping up its core R&D in
advanced cell chemistry and man-
ufacturing, as well as other battery
tech and new energy systems. It is
also working on fast-charging bat-
tery cell tech and aims to bring it
to the market. It will be setting up
a battery cell manufacturing plant
in India with a capacity of up to 50
gigawatt hour.
In India, Ola is now in direct
competition with electric two-
wheeler makers like Ather Energy,
Hero Electric, Bajaj, and TVS Motor
Company.
Ola Electric said it has more
than 50,000 scooters on road
today, with customers having rid-
den 45 million kilometres (km).
At the customer event in Tamil
Nadu, Ola also launched the
MoveOS 2 software update for all
its customers at the Ola
Futurefactory. With this, over
50,000 Ola S1 Pro customers across
the country will get an over-the-air
update. The firm says this will
make the scooter a feature-rich
two-wheeler in the country. With
the software update, the Ola S1 Pro
will offer enhanced accessibility.
The firm says the MoveOS 2 update
also enables bug fixes that were
previously found in isolated
instances, such as range drop and
battery discharge.
The software update will enable
riders to access their scooters
remotely using the Ola Electric
Companion application (app).
COMPANIES 3
Customers may see lower
discounts this sale season
Brands are left with lower inventory as they buy less stocks
SHARLEEN D'SOUZA & PEERZADA ABRAR
Mumbai/Bengaluru, 19 June
NUTS & BOLTS
n Lower discounts as consumer
In this end-of-season sale period, sentiment and sales pick up
shoppers will find lesser items on dis-
count. Moreover, there will be lower n Pepe Jeans curtails sale period
discounts and duration of the sale from 7-8 weeks to 5-6 weeks
period will also be shorter.
After coming out of the third
n V-Mart retail pulls back its
wave, retailers witnessed strong sales sale season by 15 days
since March as people started shop- n End of Season Sale: Over
ping at full price.
5 million shoppers buy 21 million
Also, during the pandemic, retail-
ers resorted to buying lower stocks Myntra products
as footfalls were impacted.
Retailers said that more stock is brand, which will start its sale period founder and managing director
moving off their shelves at full price. on June 23, plans to offer a maximum (MD), said.
Hence, they are offering lower dis- of 50 per cent discount. The brand began its sale season
counts and shorter sale periods. “Compared to pre-pandemic, we in the south on June 10 and will start
However, retailers are in a wait- have seen sales go up by 26 per cent it in north India on June 23.
and-watch mode to see if this will and we expect double-digit sales to While retailers expect a rush at
cause the overall sales to move up for continue,” Kapoor said. the offline stores, the impact was
the year as they are still in the first Retail chain Lifestyle will also already seen online.
quarter. begin its sale on June 23 and Ecommerce fashion portal
Lifestyle and apparel retailers typ- expects a strong response. It has Myntra also witnessed strong move-
ically see 40-45 per cent of their sales seen strong sales since March and ment during its end-of-reason
from the spring-summer collection has witnessed 10-11 per cent like-to- (EORS) sale.
that starts from mid-February-March like sales growth. However, it would Walmart-owned Myntra saw
and then goes on up to July-August. only have a month of sale. It will not about 21 million products being pur-
Festive sales — which are typical- reduce discounts and keep it at up chased by 5 million shoppers across
ly in the autumn-winter period — to 50 per cent. the country during the 16th edition
account for 40 per cent of a retailer’s “Many retailers resorted to cur- of its biannual flagship event.
sales. The pandemic has taught tailed trading during the pandemic. “In our endeavour to democratise
retailers to become more agile and And, the need for fashion products fashion using technology, this edi-
they have brought in the concept of is increasing now as outdoor activi- tion of (EORS) has been able to
just-in-time inventory. Here, they ties have picked up. Due to this, delight 5 million people, the highest
work closely with manufacturers and inventories are a little tight,” ever to shop during the sale season
raw material is converted into appar- Devarajan Iyer, CEO, Lifestyle, said. so far,” said Nandita Sinha, CEO,
el only when demand emerges,” He expects buoyancy during the Myntra.
Kumar Rajagopalan, chief sale period and may She added, “Myntra Live’s debut
executive officer (CEO) at extend it only if stocks at scale with the EORS was a major
Retailers Association of Brands are last. pull for brands and shoppers.”
India, said. hopeful for a Major Brands, which EORS 16 also helped in augment-
Also, brands have put better sales has names such as ing the income of 21,000 kirana part-
better supply chains in season compared Aldo, Charles & Keith ners by about 1.4 times over their
place and have warehouses to the last two and Bath & Body Works, business as usual earnings.
in central locations. years, with will run its sale for 3-4 Myntra also created 27,500 third-
“We have cut down our people starting weeks and its discount party employment opportunities
sale season by two weeks. to step out as structure is different through its partners to cater to the
It will only be for 5-6 weeks offices have across brands. sales demand.
compared to the usual 7-8 opened On an average, its It said 8 million items were
weeks as full price sell- discounts would be up already delivered to customers
throughs are higher than the pre- to 40 per cent, Tushar Ved, president before the end of the event.
pandemic period,” said Manish at Major Brands, said. The retailer Beauty and personal care regis-
Kapoor, CEO at Pepe Jeans India. has already started selling its goods tered a 5X growth in demand over
He added the inventory, which at a discount during the weekend. business as usual during EORS 16,
will go up on sale, will be 30-35 per V-Mart will also reduce the sale further strengthening Myntra’s posi-
cent lower this time. Also, the denim period by 15 days, Lalit Agarwal, tion in this category.
 4 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | MONDAY, 20 JUNE 2022 1

IN BRIEF
Goyal: Fully protected interests As fuel shortage continues, Depts turning
of farmers, fishermen at WTO
to GatiShakti
India has completely protected the
interests of farmers and fishermen in
the recently concluded ministerial
conference of the World Trade
Organization (WTO) in Geneva,
pvt players seek govt help to cut infra
Commerce and Industry Minister SHINE JACOB

project time
Piyush Goyal said on Sunday. Goyal, Chennai, 19 June
who led the Indian delegation for the

D
WTO talks, said the decisions taken in espite the government bringing in
the conference would further private players under the univer-
strengthen the role of the multi-lateral body in promoting global sal service obligation last week
trade and India championed the cause of the developing and (USO), there was a dry out of fuel outlets SHREYA NANDI
under-developed countries. Members of the Geneva-based WTO across the country on Sunday. While New Delhi, 19 June
on June 17 secured a 'Geneva Package' which included agreements Madhya Pradesh, Rajasthan and
on curbing harmful fishing subsidies and temporary patent waiver Karnataka were mainly affected last Government departments have started making use of Prime
for production of Covid-19 vaccines. PTI week, reports of fuel shortage are now Minister Narendra Modi’s Gati Shakti-led digital technology
coming from Tamil Nadu, Chattisgarh, initiative to reduce the execution time for infrastructure projects
Odisha, Kashmir and other states too. by about three-four months.
Opt for lowest air fare, book 21 This comes as Industry body
Federation of Indian Petroleum Industry
Officials from the ministry of road transport and highways
and National Highways Authority of India (NHAI) have been
days prior travel: Govt to staff (FIPI), which represents private fuel
retailers such ad Jio-bp and Nayara
attending workshops in Gujarat-based Bhaskaracharya National
Institute for Space Applications and Geo-informatics (BISAG-
The Finance Ministry has asked government employees to opt for Energy, approached the government stat- N) to draft the alignment of five expressways digitally, a senior
‘cheapest fare available’ on their entitled travel class and book air ing that under-recoveries will limit the government official said.
tickets at least three weeks prior to their date of travel for tours and ability of private players to make further Once alignments are finalised using digital technology, the
LTC, as it looks to cut down on unnecessary expenditure. The investment and expand. FIPI had said project will go into the detailed proj-
Ministry further said that employees should book only one ticket for that companies are suffering a loss of ~20- HIT BY FUEL CRISIS ect report (DPR) stage. DPR is an OFFICIALS FROM NHAI
each leg of intended travel, make bookings even if approval of the 25 a litre on diesel and ~14-18 a litre on elaborate plan of a project, entailing ARE ATTENDING
tour programme is under process and also avoid “unnecessary petrol at present due to the non-revision
Fuel prices remained ~20-25 ~14-18 ~1.89 trillion: its planning, design, risks and WORKSHOPS TO DRAFT
cancellations”. Government employees are currently required to of prices.
unchanged since May 21 a litre: a litre: Likely under recovery resources required as well as the ges- THE ALIGNMENT OF
purchase air tickets only from three authorised travel agents— “Private sector players have com- when Finance Minister Loss that Loss that that state-run OMCs tation period. Development of proj- FIVE EXPRESSWAYS
Balmer Lawrie & Co, Ashok Travel & Tours and IRCTC. PTI pletely stopped supply. Public sector out- Nirmala Sitharaman companies companies may suffer on petrol, ect alignment at the pre-feasibility DIGITALLY. WITH THIS,
lets are seeing a shortage of supply from announced a cut in excise are are diesel, and LPG, if stage of an infrastructure project is TIME TAKEN FOR A
the companies. This has led to the crisis duty on petrol by ~8 a litre suffering suffering prices remain a critical step towards the prepara- PROJECT CAN BE CUT
India gives e-visas to over 100 in almost all the states now,” said Ashok
Badhwar of the Federation of All India
and diesel by ~6 a litre on diesel on petrol unchanged tion of a DPR.
To develop project alignment
BY AT LEAST 100 DAYS

Sikhs, Hindus in Afghanistan Petroleum Traders (FAIPT).

According to industry sources, public As per the data shared by PSUs, sales lets in the state are seeing a stock of just
requires huge cost and time since survey teams need to be pres-
ent on the ground and manually complete the process.
India has given e-visas to more than 100 Sikhs and Hindus living in sector undertakings – Indian Oil of diesel and petrol saw an increase of 44 one day now. He also raised concerns With the Centre’s push towards Gati Shakti and use of the
Afghanistan following a deadly terror attack on a gurudwara in Corporation (IOC), Bharat Petroleum per cent and 42 per cent respectively, regarding supply to the agriculture sec- digital portal, also known as the national masterplan, the align-
Kabul, government sources said on Sunday. The electronic visas Corporation (BPCL) and Hindustan between June 1 to 16 this year, as com- tor. ment can be drawn digitally in less than a week. The task other-
have been given “on priority” to these people by the Ministry of Petroleum Corporation (HPCL) – are see- pared to the same time last financial year. Last week the government had wise takes three-four months. Moreover, huge survey costs will
Home Affairs, they said. Several blasts tore through Gurdwara ing a 20 per cent increase in average daily “It is to be noted that private oil expanded the universal service obliga- be saved, the official said.
Karte Parwan in Kabul’s Bagh-e Bala neighbourhood on Saturday supplies now. When asked about the com- Companies have a sizable retail network tions (USO) to the private sector as well. “Ministries have started using the Gati Shakti national mas-
while Afghan security personnel thwarted a bigger tragedy by plaints by dealers, a senior executive from presence in the markets and there has Through this, fuel outlets will have to terplan for developing project alignment. It is the power of tech-
stopping an explosive-laden vehicle from reaching the place of a state-run major said, “All executable been a huge shift in both petrol and diesel maintain supplies at specified working nology and government working together that is changing
worship of the minority community. PTI indents placed by the dealers are being volumes to PSU OMCs due to dry hours and at reasonable prices. According through PM Gati Shakti,” the official cited above said.
executed and sufficient product is avail- outs/higher prices at private sector out- to the media reports and sources, those The national masterplan platform has also started providing
able at all the supply locations. Locations lets,” the official added. private outlets that are providing fuel on tools to obtain inter-departmental clearances.
ONGC chairman: Oil ministry for are operating beyond the normal working
hours to meet the increase in demand.
On Sunday, Chattisgarh chief minister
Bhupesh Baghel wrote to Petroleum
Sunday were doing it at a higher price
compared to a PSU outlet.
For instance, forest clearances can be obtained online
through this portal now, the official added.
higher age limit, shorter tenure There has been an increase in demand
on account of seasonal surge due to agri-
Minister Hardeep Singh Puri seeking reg-
ular supply of petrol and diesel in the
Fuel prices remained unchanged since
May 21 when finance minister Nirmala
The Gati Shakti national masterplan was announced by the
Prime Minister in October last year. It is an integrated plan
A year after the government headhunter failed to find any suitable cultural activities. Tourism is in full swing state. Sitharaman announced a cut in excise depicting the economic zones and the multimodal connectivity
candidate for top job at ONGC, the oil ministry has proposed and sales are at record high in tourist He said that as compared to a buffer duty on petrol by ~8 a litre and diesel by infrastructure. It aims to integrate the interventions of various
raising of eligibility age as well as a shorter tenure for the new places. stock of around four to five days, fuel out- ~6 a litre. ministries and government departments as well as address the
chairman and managing director of the firm. The ministry has missing connectivity gaps in such zones.
proposed that any candidate to be eligible for consideration
should not be more than 60 years of age on the date of occurrence
of vacancy, according to the ministry's office memorandum sent
to the Department of Personnel and Training on June 17. PTI
YES Bank’s plan to sell ~12K-cr ~920-cr transit corridor
ASSAM FLOODS: DEATH TOLL AT 70
bad loans to ARC faces delay opens after 3-year delay
+
DEV CHATTERJEE financial assets to ARCs at an
Mumbai, 19 June NPA PICTURE (Standalone figures in ~cr) early stage of stress, the com-
mittee recommended a dis-
FY Gross Net GNPA Net NPA
The Reserve Bank of India pensation to lenders, on an
(RBI) and YES Bank are in dis- NPA NPA (%) (%) ongoing basis, to amortise the
cussions over the bank's plans FY18 2,627 1,313 1.3 0.6 loss on sale within two years.
to sell bad loans to an asset rec- FY19 7,883 4,485 3.2 1.9 The RBI is expected to come
onstruction company (ARC). out with fresh regulations
YES Bank is planning to sell FY20 32,878 8,624 16.8 5.0 soon.
its bad loans worth ~12,000 FY21 28,610 9,813 15.4 5.9 YES Bank’s plans to sell the
crore to the ARC to be set up FY22 27,976 8,205 13.9 4.5 bad debt comes at a time when
by American financial power- for the financial year ended Prime Minister Narendra Modi picks up litter while
Compiled by BS Research Bureau Source: Capitaline
house JC Flowers and also hold March 2022, the bank reported inspecting the newly opened ITPO tunnel PHOTO: PTI
The flood situation in Assam deteriorated on Sunday with a stake in the new ARC. a profit of ~1,066 crore after two
eight more people losing their lives and over 3.7 million The regulator wants the cation from the Reserve Bank In November, a committee successive years of heavy Prime Minister Narendra the Covid-19 pandemic. “This
people suffering across 30 districts, an official said. With this, bank to avoid any conflict of of India (RBI). set up by the RBI had come out losses. The bank also doubled Modi on Sunday inaugurated is a new India that solves the
the total number of persons losing their lives in this year's interest with the ARC as YES “The RBI is coming out with with a report that recom- its deposit book from about the main tunnel and five problems, takes new pledges,
flood and landslides has gone up to 70. According to the Bank plans to hold a minority comprehensive regulations on mended sale of stressed assets ~1.05 trillion in FY20 to ~1.97 underpasses of New Delhi’s and works tirelessly to realise
Assam State Disaster Management Authority (ASDMA), three stake in the same ARC. The the ARCs. The report would by lenders at an earlier stage to trillion by March this year. Pragati Maidan integrated those pledges,” Modi said.
people died due to landslides and five drowned at different Swiss challenge to the offer also have directions on whether allow for highest recovery by In March 2020, the RBI and transit corridor, which is part Located near the centre of
places during the day. More than 37,17,800 people are hit due made by JC Flowers is cur- the banks can sell their entire the ARCs. The committee the government had framed a of the larger redevelopment the city, the Pragati Maidan
to floods in 4,462 villages across 30 districts of the state, an rently pending. JC Flowers was NPAs to a single ARC and highlighted the need for regu- restructuring scheme to sal- project of the area. corridor is expected to provide
ASDMA official said. Many new localities came under the selected by the bank after it whether the banks can own a latory clarification on sale of vage the bank. State Bank of Built at a cost of ~920- smoother vehicular mobility
impact of the deluge in several districts of the state and invited the ARCs for a joint stake therein. The idea is to give all categories of special men- India and other lenders had crore, the corridor work began in an otherwise congested
overnight incessant rain inundating more areas in Guwahati, venture. a level playing field to all the tion accounts (SMAs) to the infused ~10,000 crore under in 2017 and was expected to area. It is the latest of the
officials said. The state was witnessing floods and landslides When contacted, a YES ARCs while they bid to buy ARCs. the scheme after it gave loans be completed by 2019. Several efforts to enhance intra- and
for the past six days, leaving behind a huge trail of destru- Bank official said they have not bank loans,” said a source close Besides, as a measure to to several companies which deadlines were missed amid inter-city connectivity of the
ction everywhere. Relief materials were also distributed received any such communi- to the development. incentivise lenders to sell their failed to repay debt. congestion issues and then national capital. BS REPORTER
among people who are affected by the floods and have not
taken shelter in relief camps, the ASDMA said PHOTO: PTI

> FROM PAGE 1

Coal stock enough for 24 days
of requirement of power plants
The government on Sunday said that coal stock at various coal
mines is more than 52 million tonnes (mt), which is sufficient for
about 24 days' of fuel required for power plants in the country.
The statement came weeks after shortage of fuel crippled power
generation at various power plants in the country. In addition to
it, about 4.5 mt coal stock is available at various goods shed
sidings, private washeries and ports and is awaiting to be
transported to the power plants.
SC stays Bombay HC order asking to
compensate farmers for crop loss
The Supreme Court has stayed a Bombay High Court order which
had asked Bajaj Allianz General Insurance Company Ltd. to
compensate over 3.5 lakh farmers under the Pradhan Mantri
Fasal Bima Yojana (PMFBY) for loss of soya bean crop due to heavy
rainfall in 2020. A Supreme Court vacation bench comprising
justices J K Maheshwari and Hima Kohli, however, asked the
insurance company to deposit ~200 crore with its registry within a
period of six weeks from June 16. In a major relief to soya bean
farmers of Osmanabad district , the Bombay High Court circuit
bench in Aurangabad recently directed the insurance company to
compensate them. PTI
Kerala FM: Not in ‘debt trap’;
‘We’d like to continue to hold a good stake in IDBI Bank’
On the APE basis, I am sure we have
been able to regain some market
share. LIC is a very large institution
and we have come out of every tough
situation stronger. In fact, the post-
Covid recovery is a sign of our resil-
PTI ience and I hope the current rise in
Covid cases does not disrupt the way
the first two waves did. We are very
confident that we will be able to retain
the market share of 60 -65 per cent, if
not regain lost market share from
private peers.
Brokerage houses have
questioned your ability to
sell and market non-par
(non-participatory)
products because you do
not have bancassurance M R KUMAR
tie-ups with large banks. Is Chairperson, LIC
there a plan to tap them to
be your banca partner?
Depending on the flavour of the mar-
ket and customers’ needs, we were
selling more par products. It was a
segment that customers were more
comfortable with because they tried
We have met with bankers recently.
Besides, for the first time we have
launched a product exclusively for
this channel. So, there will be some
differentiated products for the ban-
cassurance channel in the coming
days. And, with the focus on ULIPs,
and protection products, I believe, we
will be able to score over the compe-
tition in terms of non-par business.
Last year, we tied up with some
banks. We are still working on a few
more tie-ups. Now that each bank can
have tie-ups with three insurance
companies, there are several
that do not have more than
two tie-ups and we are look-
ing to tap such banks.
What share of your total
business do you think will
come from the
bancassurance channel
once you scale it up?
At present, it is around 3-3.5 per cent.
In a couple of years’ time, we would
like to raise it to at least 8-10 per cent,
if not more. It will depend on how
into them is going to take time. But
we are working on some of the big out-
lets initially in the tier-I, II, and III
areas. The second step will be to
launch differentiated products for
this channel. And, in five years, we
would like to be the number one
player in the bancassurance channel.
We would like this channel to contrib-
ute at least 15 per cent to our business
by then.
margins?
If you look at private insurance com-
panies when they got listed, they too
had value of new business margins
(VNB) around the same levels and it
has taken some time for them to scale
it to over 20 per cent. I think we would
like to reach margins of 12-15 per cent
in a couple of years, and five years
down the line, we should be able to
have margins of 20 per cent.
How has the response been for IDBI
Bank’s roadshows? Is there a
consensus with the government on
how much LIC can hold in IDBI
Bank?
The roadshows were very successful.
IDBI Bank has come out of the prompt
corrective action (PCA) framework.
But markets being what they are amid
geopolitical tensions, we don’t know
how things will pan out. Like I have
said in the past, LIC would like to con-
tinue to hold a good stake in IDBI
Bank because in a very short span it
has done very well in bancassurance
for us, and it has a lot of ambitious
with the amount announced…
The dividend payout that was
announced was a board decision. But,
going forward, we will definitely keep
the aspirations of our shareholders in
mind. It will depend on our perform-
ance, surplus generation, and value
creation.
How will your investment decisions
change now that LIC is listed?
Investment decisions will not change
because they have always been
guided by sound principles. We have
an investment committee and we are
very contrarian. We buy when the
market is down and sell when it’s up
and that’s how we booked a good
amount of profit last year. But then
this is a question that is often
repeated: Why do we have invest-
ments in certain companies? We take
a call depending on the firm’s per-
formance and their forward guidance.
We try to pick up stocks early and hold
onto them for the long term. We are
not someone who buys and sells daily.

RBI failed to study realities to get more bonuses. We were the first
to introduce unit-linked insurance
Asserting that Kerala is not in a “debt trap”, Finance Minister K N products (ULIPs) in the Indian
Balagopal on Sunday said a RBI article that expressed concerns market. But depending on the
over the state’s financial health was done without studying the demand, we have been rotating our
ground realities. Critical of the Reserve of India (RBI) article as well products and bringing in new ones
as the overall approach of the central government, Balagopal, also whenever required.
a senior leader of the state’s ruling Left front, said Kerala is facing On the bancassurance side, we
financial difficulties like any other Indian state and those can be have around 62,000 outlets. We have
managed only with collective efforts of the Centre and states. PTI to reinforce our focus on this channel.
many banks we can reach out to and
how much training we can provide
bank employees in terms of the pro-
ducts we are launching. We have 14
major banks, including IDBI Bank, 13
regional rural banks, and 45 cooper-
ative banks. Also, we have 71 corporate
agents, 35 insurance marketing
agents, and 63 brokers. In all, we have
around 62,000 outlets and tapping
What will the share of the non-par
business be in your portfolio?
On an APE basis, non-par is about
7 per cent now. We would like to raise
that to 12-15 per cent in three-four
years.
How soon do you expect the change
in product mix to positively impact
programmes lined up for this
business. That being the case, we will
be talking to the government to
ensure that we continue to have some
stake. Of course, divestment of
government stake is for the govern-
ment to speak about.
People were expecting better
dividends and felt disappointed
How would you reflect back on your
term as chairperson?
It has been a roller coaster ride. I
joined in March 2019, and by the time
I settled in, the Covid-19 outbreak
happened. The announcement of the
IPO also came around the same time.
I will be looking back with a lot of sat-
isfaction at what we aspired to do and
achieved.

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 >
NEW DELHI | MONDAY, 20 JUNE 2022 5

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izkjfEHkd izf'k{k.k ¼,d o"kZ j[k&j[kko lfgr½ gsrq Turnkey Basis ij fucaf/kr ,oa bPNqd xSj ljdkjh laxBuksa@v)Z ljdkjh
laxBuksa@dEiuh@laLFkkuksa@QeZ@mRiknd ,oa muds izkf/kd`r izfrfuf/k vkfn ls bZPNk dh vfHkO;fDr (Expression of Interest)
vkea=.k ls iwoZ bPNqd izLrkodksa dks fnukad 24-06-2022 dks vi0 03%30 cts ls lekgj.kky; lHkkxkj] yksgjnxk esa fu/kkZfjr Pre-Bid
ifjppkZ esa Hkkx ysus gsrq vkefU=r fd;k tkrk gSA
mä Pre-Bid cSBd esa bPNqd izLrkodksa ls Interactive Panel with PC Module ls lacaf/kr fuEukafdr U;wure
specifications ij ifjppkZ rFkk izLrkodksa }kjk rduhdh fcUnqvksa] dk;Z ;kstuk vkfn ds lanHkZ esa izLrqr Power Point Presentation ;k
lq>ko ds vk/kkj ij csgrj rduhd ,oa fodYi vkfn ds vkyksd esa ftykLrjh; Ø; ,oa ewY;kadu lfefr }kjk ekud Interactive Panel
with PC Module gsrq bPNk dh vfHkO;fä vkeaf=r dh tk;sxh &
Display
Size 75 inches
Display Ratio 16:9
Backlight DLED
Resolution 3840(H)x2160(V)
Viewing Angle Hortizontal 1780/ if other please specify Vertical 178 0 /if other please specify
Touch System
Glass Material Anti -glare tempered glass
Touch Technology Infrared
Touch Point >= 20 points touch, 10 points writing
Writing To ols Finger, Finger cover by glove, Opaque objects
Touch Accuracy ±1.5mm
Speaker
Speaker Minimum 2x12w or more
Display Connectors
HDMI IN Yes (Specify No.)
HDMI Out Yes (Specify No.)
VGA IN Yes (Specify No.)
USB 2.0 Yes (Specify No.)
USB 3.0 Yes (Specify No.)
USB Touch Output Yes (Specify No.)
RS232 Yes (Specify No.)
LAN(RJ45) Yes (Specify No.)
Built -in Operating System
Operating System Android 8.0 embedded, supports slot -in PC module
Technology upgradation option Yes
Option for External Laptop connection Yes
Processor Quad core
Memory Minimum 3GB
Built in Storage Minimum 32GB
PC Module
Operating System Windows 10
CPU Core i5
RAM Minimum 4GB
Storage Minimum 256GB
GPU Intel or Other’s HD Graphics
Power
Power 100 -240V~ 50/ 60Hz
Onsc reen Display Language Hindi, English & Other (Please Specify)
Camera
Pixel 8 Mega Pixel or above
Camera Function Smart Switch between android system & OPS
Resolution ratio Up to 4K
Microphone
Sepcification Omni directional
Function Echo reduction & Smart noise cancellation
Sound Pickup distance 6mtr or above
Accessories
Remote control w/ Battery Standard
Power card Standard
Touch Pen Standard
Quick Start Guide Standard
+ Touch Cable (USB to USB) Standard
HDMI cable Standard
VGA (D -Sbu 15 pin ) cable Standard
Wall mount Standard
If any other better economical Specification will be added after discussion
PR.NO.271840 Lohardaga(22-23):D g0@& mik;qä] yksgjnxkA

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 CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
Corporate Office: 1st Floor, 'Dare House', No.2, N.S.C. Bose Road, Chennai-600 001
Branch Office: Branch Office: 1st & 2nd Floor, Plot No.6, Main Pusa Road, Karol Bagh,
6 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | MONDAY, 20 JUNE 2022 1
New Delhi - 110 005.

No rollback of Agnipath:
MoD downplays protests
Chiefs of tri-services say scheme aimed at bringing down age profile of forces
AJAI SHUKLA
New Delhi, 19 June

D
ownplaying the violent protests
against the Agnipath recruitment
scheme that continue to rock Uttar
Pradesh, Telangana and Bihar, the
Ministry of Defence (MoD) on Sunday
fielded the military’s top manpower
planners in a press conference to send out
the message: “Agnipath is here to stay.”
Meanwhile, as many as 35
WhatsApp groups that were allegedly
spreading fake news about the
Agnipath military recruitment scheme
were on Sunday banned by the govern-
ment, officials said.
Lieutenant General Anil Puri,
additional secretary in the Department of
Military Affairs (DMA), who was at the
forefront of conceiving and structuring the
Agnipath Yojana and is now the military’s
frontman in defending the scheme, told
the press conference in Delhi: “The
Agnipath scheme will not be rolled back.
Why should it be rolled back?"
Conveying the impression of a strong
government, Puri said the concessions that
the MoD had made in the Agnipath
scheme were not forced by protests and
arson, but because they were already in
the works.
The generals spelt out a recruitment
schedule that made it clear it was too late
to backtrack on this pathbreaking scheme.
Lieutenant General C Bansi Ponnappa,
the Army’s Adjutant General and top man-
power planner, said recruitment to the
Army would start in the first half of August
and the first Agniveers will come in by the
first week of December, followed by a sec-
ond lot in February.
Ponappa said the Army would hold 83
recruitment rallies and touch “every vil-
Railway employees repair the damaged Patna-Gaya railway line on Sunday PHOTO: PTI
RECRUITMENT SCHEDULE
NAVY IAF ARMY
| Guidelines to be | Registration | Notifications on July 1
issued by June 25 process to and rallies in August,
begin from June 24 September, and October
| First batch of recruits
will join training | Online examination | First batch will join training in
programme on INS process for phase one the first and second week of
Chilka in Odisha by from July 24 December
November 21 | Training for first | The second lot of recruits will
| Navy is recruiting both batch of recruits by join their training around
men and women December 30 February 23
lage” in the country. With the 2011 census cent quota in MoD jobs, which include the
placing the country’s village count at Coast Guard, defence civilian posts, and
640,930, this requires each rally to carry all 16 defence public sector undertakings.
out recruitment from an average of 7,722 This reservation would be over and above
villages. This is clearly an exaggeration. the existing job reservations for ex-ser-
The Air Force too said it would enrol vicemen.
the first batch of Agniveers by December In addition, the government hastily
and training would begin before the New announced a 10 per cent quota for retired
Year. The Navy, however, will be the first Agniveers in the Central Armed Police
service to get off the blocks. The first batch Forces (CAPFs), which include the Central
of Agniveers would reach the Chilka Lake Reserve Police Force, the Border Security
in Odisha for training by November 21. Force, the Central Industrial Security
The unanticipated protests have forced Force, the Indo-Tibetan Border Police, the
the government to announce several ad Seema Suraksha Bal and the Assam Rifles,
hoc concessions. These include a 10 per the last of which comes under the MoD.

Decisions not impactful, but WTO wins big

+ EXIM MATTERS
T N C RAJAGOPALAN
Last week, trade ministers of
164 member countries of the
World Trade Organization
(WTO) agreed on a set of meas-
ures that do not amount to
much in terms of impact but
are significant because all of
them signed up to the deci-
sions, thus restoring the confi-
dence, credibility, and rel-
evance of the body.
Developing countries,
under certain circumstances,
can now allow manufacturers
to make and export Covid-19
vaccines without consent from
the patent holders. Developing
countries, such as India, with
the existing capacity to man-
ufacture Covid-19 vaccines, are
encouraged to make a binding
commitment not to avail of
this decision.
The decision comes at a
time when vaccine availability
in the world is not a major
issue and the Covid-19 threat
has abated, although it has not
gone away. Also, the decision
does not extend to other vac-
cines, therapeutics, diagnos-
tics or other essential medical
goods. Whether the manufac-
turers in developing countries
can manufacture the vaccines
without the transfer of requi-
site know-how by the patent
holder is doubtful. Moderna,
a leading pharmaceutical
manufacturer, waived its
intellectual property rights for
Covid-19 vaccines but no other
entity has been able to man-
ufacture its vaccines.
Henceforth, the WTO
members shall not impose
export prohibitions or restric-
tions on foodstuffs purchased
for non-commercial humani-
tarian purposes by the World
Food Programme. However,
this decision shall not prevent
the adoption by any member
of measures to ensure its
domestic food security, in
accordance with the relevant
provisions of the WTO agree-
ments. So, any country can still
invoke its food security con-
cerns to justify its export bans.
The current practice of not
imposing Customs duties on
electronic transmission will
continue till the next ministe-
rial conference (MC13) to be
held towards the end of
December 2023. If the MC13 is
not held by March 31, 2024, the
moratorium will expire on that
date unless ministers or the
General Council take a deci-
sion to extend it. This decision
is a modest win for countries
that want to tax electronic
commerce but a lot depends
on how the negotiations pro-
ceed on this issue in the days
ahead.
No member shall grant or
maintain any subsidy to a ves-
sel or operator engaged in ille-
gal, unreported and unregu-
lated (IUU) fishing or fishing
related activities in support of
IUU fishing. Indeed, these
activities should not be
allowed at all and, so, there
should be no question of
extending subsidies to them.
Anyway, it is a step forward
because any agreement on
fisheries subsidies has eluded
the WTO members since the
negotiations on the issue com-
menced in 2001.
An important step forward
is the intent to reform the WTO
rules. Since the WTO was
established in 1995, the world
has changed significantly and
so, there is a need to revisit the
rules based on the experience
gained. The General Council
and its subsidiary bodies will
examine the reforms needed,
review progress, and consider
decisions, as appropriate, to be
submitted to the next ministe-
rial conference.
On the dysfunctional dis-
pute settlement mechanism,
the trade ministers have com-
mitted to conduct discussions
with the view to having a fully
and well-functioning dispute
settlement system accessible
to all members by 2024.
Overall, MC12 is a great
win for WTO and its Director
General Ngozi Okonjo-
Iweala. “The outcomes dem-
onstrate that the WTO is, in
fact, capable of responding to
the emergencies of our time,”
she said.
email: tncrajagopalan@gmail.com

well as details of insurance

> BS SUDOKU #3694 > FROM PAGE 1
Irdai...
The changes have been pro-
posed through amendments
to the Credit Information
Companies (Regulation) Act,
2005, Credit Information
Companies Regulations, 2006,
and Credit Information
Companies Rules, 2006.
These require an insurance
company to become a
member of at least one credit
information company.
Insurance companies, along
with other credit institutions,
will be required to provide
information and data relating
to their borrowers or insurance
fraudsters to the credit infor-
mation company. The pro-
posed amendment also
SOLUTION TO #3693 requires credit institutions and
insurance companies to
Very easy: update such information on a
« monthly basis and ensure that
Solution the data provided is accurate.
In the case of individuals
tomorrow
and entities, the proposed
HOW TO PLAY amendments require credit
information companies to col-
Fill in the grid so that lect details of borrowers’
every row, every accounts such as credit limit,
column and every outstanding balance, repay-
3x3 box contains ment history, amount and
the digits 1 to 9 period of default, primary or
collateral security taken, as
fraudsters such as policy, pre-
mium, agent, intermediary,
loss assessor, hospital or
garage, or any other person
involved. It has also been pro-
posed that KYC be done for all
customers of general insurers
while issuing policies, which
would help in risk profiling and
strengthening due diligence.
However, KYC is sought to be
allowed electronically, consid-
ering the volume, spread, and
coverage of insurance pro-
ducts. This would also neces-
sitate simplifying and
strengthening the network and
processes prescribed for e-KYC
or Aadhaar-based authentica-
tion. Incorrect declarations at
the time of buying policies and
false or inflated claims are
usual areas of fraud, said
Deepak Godbole, secretary
general at the Insurance
Institute of India. Some studies
show that globally, around 10
per cent of the premiums are
said to have been lost due to
frauds, Godbole said.
Insurers ave been under-
taking strict due diligence after
experiencing various types of
frauds, and this would add a
further check through a
unified database that will help
them profile risk better, said
Suvendu Prusty, co-founder of
insurtech start-up Riskcovry.

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 NEW DELHI | MONDAY, 20 JUNE 2022 POLITICS & PUBLIC AFFAIRS 7
“I WELCOME THE DECISION ON THE #AGNIPATH SCHEME. “THE PM HAS FORCED THE YOUTH TO WALK ON THE “HAVING SOLDIERS ON CONTRACT IS DANGEROUS,
THE WAY THE OPPOSITION IS TRYING TO TAKE THIS ISSUE IN ‘AGNIPATH’ OF UNEMPLOYMENT. IN EIGHT YEARS, AND PLAYING WITH THE AMBITIONS AND LIVES OF
A DIFFERENT DIRECTION, IS NOT APPROPRIATE. IT WILL BE 160 MILLION JOBS WERE TO BE GIVEN. BUT THE YOUTH YOUTH IS WRONG. THERE IS NO USE OF SPEAKING
AN OPPORTUNITY FOR THE YOUTH ACROSS THE NATION” ONLY GOT KNOWLEDGE ON FRYING PAKORAS” ABOUT LORD RAM IF THE YOUTH DO NOT HAVE JOBS”
JAIRAM THAKUR, Himachal Pradesh chief minister RAHUL GANDHI, Congress leader UDDHAV THACKERAY, Maharashtra chief minister
> .

NEWSMAKER / RAJNATH SINGH

Soldierly and disciplined

ADITI PHADNIS

Barring a minor “one-time” tweak in

the upper-age limit for armed forces
recruitment under the Agnipath
scheme, Defence Minister Rajnath
Singh has stuck to his guns that the
scheme will change the profile of the
armed forces, making them younger-
looking. As swathes of India, from
rural areas to urban, from north to
south, burn, Rajnath stands unmoved:
Ironically over a scheme in which he
has had little to contribute, despite
being defence minister.
Yielding is not part of Rajnath’s
working style. In much of his political
life, he has stood on the side of disci-
pline even when he’s had to pay per-
sonal costs. Take his tenure as UP edu-
cation minister. Rajnath got this job
in 1991 in the Kalyan Singh govern-
West Bengal CM Mamata Banerjee with leaders of 16 other parties during an ‘Opposition leaders meet’ ahead of the Presidential election ment. He decided early on in his books and introducing Vedic mathe- Pradesh politics has shrunk after Yogi
tenure that he would not just reign as matics into the syllabus — went large- Adityanath appeared on the scene.

With an eye to the future

education minister but also rule. One ly unrecorded. Although Rajnath has always reacted
of his first moves was to bring, through But both the BJP and Rajnath per- angrily at being described as a
an Ordinance, the anti-copying law. sonally paid a price for this implaca- “Thakur” leader and strongly con-
Those were years when vice-chan- bility. The Kalyan Singh government tests such a characterisation (he
cellors of universities in UP as reno- was dismissed in December 1992 on memorably even lost his temper with
wned as Allahabad University would charges of breakdown in law and order L K Advani on the issue), the reality
Mamata Banerjee’s sights are not on the Presidential election: opposition in Punjab, joining hands not countenance police on the cam- after the demolition of the Babri Masjid. has to be acknowledged: There is no
with Mamata Banerjee and a forum pus. In 1989, the reduction of the vot- And when after a year’s President’s room at the top in the UP BJP any
They are on another election that will take place in 2024 at which the Congress is a presence ing age from 21 to 18 accelerated Rule, Rajnath contested the Assembly more for another Rajput. So Rajnath
makes no sense. unionisation and campus politics and election from Mohana, a student-dom- has no option but to be gracious
ADITI PHADNIS rule for two terms. ed up third, but the Congress. It is On the other hand, none of eventually the collapse of the exami- inated constituency near Lucknow, in about the whole thing.
Is Mamata Banerjee the then clear that it is not the BJP these regional parties threatens the nation system, which was taken over 1993, he got a bad drubbing with just As BJP chief, Rajnath had to take

T
he 2004 Lok Sabha election
saw the Congress get more
seats than expected, but not
enough to form a government on
its own. It needed allies and, in
order to keep the BJP out, the Left
offered its support, based on com-
mitment to a Common Minimum
Programme. As the Samajwadi Par-
ty (SP) was an ally of the Left in UP,
the SP rode piggyback, believing it
too was going to be part of the gov-
ernment. It thought wrong. While
the CPI(M)’s Harkishan Singh Surj-
eet, the man who helped build ma-
ny secular alliances, was invited to
the first strategy meeting to be held
+ at Sonia Gandhi’s residence, the SP
was rather pointedly kept out.
Conscious that the alliance
would not take off if the SP was not
included, Surjeet asked SP stalwart
Amar Singh to accompany him un-
invited to the meeting. When Singh
reached there, he found a stony si-
lence greeting his presence. He felt
clearly unwelcome and excluded.
Later, the SP, Congress, the
Left parties, and others were to
create the United Progressive
Alliance (UPA), which went on to
Harkishan Singh Surjeet of 2022
(and, eventually, 2024)?
The moves she has made to
bring the opposition together on
the issue of a common candidate
for the election of the president
of India suggest that the outreach
to find a new president is out-
weighed by the need to create
acceptability for an opposition
candidate for the position of
prime minister of India, 2024.
There is hardly any doubt that
internal fractures in the opposition
preclude a common strategy on the
part of the parties opposed to the
BJP and also opposed to the
Congress. This is why the Biju
Janata Dal (BJD), the YSR Congress,
the Aam Aadmi Party (AAP), and
the Telangana Rashtra Samithi
(TRS) stayed away from the
Banerjee-sponsored meeting for a
consensus on the common presi-
dential candidate.
Take the example of the recent
Brajrajnagar Assembly by election,
which the BJD won by a massive
margin of 65,000 votes.
But look at the party that came
second — not the BJP, which end-
that is the BJD’s primary threat in
Odisha but the Congress. “We may
carry the formal tag of being the
main opposition party in the state
but people are yet to accept us in
that role. In popular perception,
our role as the main opposition
has been diluted because the rul-
ing BJD is often seen as supporting
us on various issues. That creates
suspicion in the minds of people,”
BJP leader Satyabrata Panda told
local newspapers.
Similar is the case with the TRS.
In the Telangana Assembly elec-
tions in 2014, the Congress won 21
seats out of the 119 seats it contested,
with a vote share of 25.02 per cent.
But in the 2018 Assembly elec-
tion, the Congress contested only
100 seats, including friendly con-
tests in four, as it had forged an
alliance with the Telugu Desam
Party, CPI, and Telangana Jana
Samithi to form the Maha Kootami
or the People’s Front.
Yet, it won 19 seats and its vote
share went up to 28.4 per cent.
For the Aam Aadmi Party, with
an election looming in Delhi and
with the Congress the primary
Trinamool Congress (TMC).
It is more than a coincidence
that May 2022 saw the birth of a
new organisation not directly asso-
ciated with the TMC. The website
says that “India Wants Mamata Di
(IWM) is a community, believing in
the ideology of Hon’ble CM of West
Bengal, Mamata Banerjee and All
India Trinamool Congress, the par-
ty that she leads”. It is steered by
professionals and was launched by
MP Derek O’Brien on May 14. The
Twitter and Facebook accounts of
IWM have crossed 10,000 followers
and have been active with posts
that praise the West Bengal
government and Banerjee.
There is hardly any doubt that
with the support of the BJD and
other “non-aligned” parties, the
BJP will have no difficulty in getting
its presidential candidate to win
the election.
Banerjee is not unaware of this.
But her sights are not on the July
election: They are on another elec-
tion that will take place in 2024.
Whoever the opposition decides
on, Banerjee will still be a winner
even if the opposition loses.
by student mafia. Students used to
take examinations with a knife thrust
into the desk.
Rajnath had none of this. He
announced that copying would
henceforth be a non-bailable offence:
Which meant the onus of proving one-
self innocent was on the accused.
Young people aged 14 and 15 were sent
to jail on charges of copying in exam-
inations. The immediate fallout was
that the pass percentage in the UP
High School Board examination for
Class X in 1991 was 58.03. In 1992, after
the anti-copying law was put in place,
it was 14.7. Similarly, the Intermediate
(Class 12) results showed 80.54 per
cent passing in 1991. In 1992, the pass
percentage dipped to 30.38.
Both sides had their arguments.
Rajnath was implacable that only dra-
conian measures could prevent copy-
ing in examinations. Indeed, he told
reporters that some people in his fam-
ily were involved in this exercise “as
a business” and “when I came to know
of this, I stopped talking to them, I
found the practice so reprehensible”.
But children being hauled to jail?
His other moves as education minister
— removing “distortions” in history
38 per cent of the vote against the some unpleasant decisions and pro-
Samajwadi Party’s 44 per cent. The pel some others. After the BJP’s 2009
Samajwadi Party won the seat. defeat, when then vice-president
Rajnath has never Yashwant Sinha
acknowledged as cor- The space for Rajnath in resigned from all par-
rect the charge of aca- UP politics has shrunk ty posts, Singh had to
demics that he after Yogi Adityanath take the unprecedent-
behaved as a fascist in appeared on the scene. ed step of issuing
imposing the anti- Although Rajnath has orders that those
copying law. He has always reacted angrily going public with
always believed it was at being described as a complaints about the
his achievement that ‘Thakur’ leader and leadership would be
he was able to bring strongly contests such a dealt with sternly. As
order into troubled characterisation, the a BJP leader put it, it
campuses, although reality has to be was a clash between
the Kothari acknowledged: there “the coterie advising
Commission on high- is no room at the top L K Advani and the
er education says that in the UP BJP any more rest of the party, with
some amount of poli- for another Rajput Rajnath Singh trying
tics and disorder on his best to retain some
campuses was inevitable, even desir- measure of authority”. When the Goa
able. To Rajnath must go the dubious meeting of the party saw Narendra
distinction of intermediate and high Modi publicly throw his hat into the
school-level policing of examinations. ring for the top job, it fell to Rajnath
The limited point is that once to make the decision palatable to the
Rajnath makes up his mind, there are party, especially Advani, who
few who can change it. On the other attacked him in a public letter. As
hand, was the Agnipath scheme a sig- before, on the Agnipath issue, he’s
nature Rajnath Singh scheme in the standing up to be counted as a lieu-
first place? tenant of Prime Minister Narendra
The space for Rajnath in Uttar Modi, implacable in his loyalty.

STORY IN NUMBERS
LOOKING BACK ON PREZ KOVIND’S LEGACY
Ram Nath Kovind will step
down as India’s 14th President
in July this year. He was elected
by a huge margin on June 25,
2017. In his capacity as India’s
First Citizen, he owns the
shares of several public sector
enterprises held by the
government.
How have these companies
performed during his tenure?
The President has no role in
running these concerns. He is
only the titular owner of the
shares of these companies. No
liability of any kind attaches to
him.
But the price movement of
the companies’ shares does
affect his portfolio.
Take a look at the portfolio
of the President of India and
the legacy he leaves his
successor who will be elected
on July 18 in an elaborate
election, for which the process
is currently underway.
ADITI PHADNIS
TOP 10 PSUs
CURRENT
Company Industry
Missing in action Akhilesh’s relations with Khan, a
cherished aide of his father,
Mulayam Singh Yadav, soured
during the period when Khan and
RADHIKA RAMASESHAN his family were incarcerated on a
slew of charges. Only when Akhi-
Haji Fazlur Rehman, Saharanpur lesh’s indifference towards Khan
MP elected from the Bahujan — it was alleged that he did not
BSE PSU Samaj Party (BSP), decided that visit him even once in jail — was
things had come to a head in his commented upon and discussed
town when on June 12 the in the public domain, he said.
administration rolled in Once Khan secured bail after
bulldozers and razed the former Congressman Sibal fought
properties — deemed as “illegal” his case in the apex court, Akhiles-
8,566.5 8,155.2
— belonging to Muzammil and h visited the ailing leader at a Delhi
Abdul Wakeer. Muzammil and hospital. He made more amends
Wakeer have been accused of by sending Sibal to the Upper
spearheading the June 10 protests House and giving a ticket to Asim
outside a Saharanpur mosque, Raja, a long-term Khan associate,
BEST- AND WORST-PERFORMING PSUs Price in ~ after the Friday prayers, against to contest the forthcoming
former Bharatiya Janata Party There was a muted response from the Opposition, even as Rampur Lok Sabha by-poll. It was
BEST Industry Jul 25, 2017 Jun 15, 2022 Change % (BJP) spokesperson Nupur authorities in UP bulldozed Muslim houses, following protests speculated that Khan wanted a
Sharma’s remarks on the Prophet. against Nupur Sharma’s remarks ticket for his wife but changed his
l T N Telecom Cables - Telephone 1.77 7.6 331.6 Rehman reached out to the mind once Akhilesh chose RLD
l FACT Fertilisers 41.55 112.5 170.6 local Samajwadi Party (SP), Rash- pressing matters like inflation.” such punishments. That was it. chief Chaudhary Jayant Singh
triya Lok Dal (RLD), and Congress The SP, with 111 legislators in a Rajendra Chaudhary, SP over his wife, Dimple Yadav, for a
l Madras Fertilizers Fertilisers 22.15 44.9 102.7
members to forge a coalition of House of 403, is the largest entity spokesperson and member of the place in the Rajya Sabha.
l HPCL Refineries 122.6 214.85 75.2 the Opposition and pressure the in the Opposition. Yet, it took legislative council, said: “There is “That’s another proof of our
l Indraprastha Gas Gas distribution 225.42 355.2 57.6 administration to call off the incessant questioning on social no need (for the SP) to stage an commitment towards the
crackdown on Muslims. It was media to force a tweet from agitation. We will work within the minorities because the RLD-SP
WORST Rehman’s own initiative because Akhilesh Yadav, SP president and framework of the Constitution. alliance is important to keep the
l PNB Banks - Public sector 162.95 29.9 -81.7 the BSP president, Mayawati, did leader of the Opposition, conde- We are committed to ensuring Jat-Muslim combine intact in
not ask him for any kind of action. mning the demolition of the justice for the minorities.” western UP,” claimed Lathar.
l Central Bank Banks - Public sector 91.5 17.0 -81.4
Her reaction was confined to a house of Afreen Fatima, former Sanjay Lathar, SP’s former That the SP is keen not to
l Union Bank (I) Banks - Public sector 161.2 36.0 -77.7 tweet in which she criticised the JNU student and Opposition leader in overestimate its “pro-Muslim”
Uttar Pradesh government for activist and researcher the Legislative antecedents was articulated by
l Pun. & Sind Bank Banks - Public sector 55.9 14.2 -74.6
creating “an atmosphere of fear in Allahabad, by the Council, said: “We will another spokesperson, Sunil
l Bank of India Banks - Public sector 164.05 44.4 -73.0 and terror” and demanded the Prayagraj fight legal battles. Singh Yadav. “It’s not a question of
arrest of Sharma. “I felt enough Development That’s why we gave a only taking up the cudgels for
*T N Telecom: Tamil Nadu Telecommunications; FACT: Fertilisers And Chemicals Travancore
was enough because innocent
young persons were targeted in
Authority on June 11.
Afreen’s father Javed
Rajya Sabha berth to
(Kapil) Sibal.” As
Muslims. We are there to defend
whichever community is hara-
PREVIOUS the most horrible ways by police. Mohammed is a leader “evidence” of the SP’s ssed and victimised. In Unnao,
Jun 15, 2022 Company Industry Jul 25, 2017 If the Opposition doesn't step up, of the Welfare Party of “responsibility” my home town, even Hindu

n Life Insurance Life Insurance

M-cap ( ~crore)
4,36,709 n SBI Banks - Public sector
M-cap (~crore)
2,55,726
then who will?” said Rehman. So
far, his efforts have not coalesced
India. She and
Mohammed were on STATE towards Muslims,
Lathar said of the four
homes were bulldozed,” he said.
The RLD and the Congress

n SBI Banks - Public sector 4,02,946 n ONGC Oil exploration / Allied services 2,10,016
into anything concrete and that
reflects the quandary within UP’s
Opposition on the ongoing
the Yogi Adityanath
government’s radar
since they
SCAN candidates nominated
for the impending
spoke in a similar vein. Sunil
Rohtas, the RLD spokesperson,
n ONGC Oil Exploration / Allied services 1,90,465 n IOCL Refineries 1,81,732 UTTAR PRADESH Legislative Council said: “Our focus is presently on
upheaval. participated in the elections, two are fighting and winning the
n Power Grid Power generation and supply 1,54,995 n Coal India Mining / Minerals 1,60,493 That the Opposition is tiptoe- agitation against the Muslims: Jasmer Rampur and Azamgarh (Lok
n NTPC Power generation and supply 1,43,705 n NTPC Power generation and supply 1,35,226 ing around the post-protest deve- Citizenship Amendment Act in Ansari, former MLA from Sabha) by-polls.”
lopments was evident in what Ma- 2019, although the government Laharpur, and Shahnawaz Khan, Aradhana Mishra, one of the
n Coal India Mining / Minerals 1,17,153 n Power Grid Power generation and supply 1,13,212 irajuddin Ahmed, RLD’s general claimed that portions of the son of Sarfaraz Khan, a loyalist of two Congress legislators, said:
n SBI Life Life insurance 1,12,554 n BPCL Refineries 1,01,239 secretary, said: “We need a more flattened property were “illegally” SP veteran from Rampur, Azam “The Congress’s stand is clear. In
aggressive Opposition but the SP raised and had to be torn down Khan. Like other parties, the SP such cases (of protests), legal
n IOCL Refineries 1,02,803 n GAIL (India) Gas distribution 63,111
has to take the lead. But first of all, and the motive, therefore, was not believed its obligation towards procedures must come into play.
n BPCL Refineries 68,266 n HPCL Refineries 56,846 the courts have to take cognizance “political vendetta”. Muslims, even in particularly If we, the lawmakers, do not
n SBI Card Finance - others 68,197 n Bharat Electronics Electronics - others 38,518 of objectionable statements. Akhilesh stated that “our harsh circumstances, was repose our faith in the
Protests of the kind we witnessed culture, religion, law, and the confined to disbursing patronage. Constitution, how can we expect
Data Source: Capitaline are not necessary. There are other Constitution” do not sanction To put matters in perspective, people to?”

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Crypto winter: Bitcoin plunges below $18K in record-breaking rout

Bounces off lows but
still below $20,000
BLOOMBERG
19 June
Bitcoin plunged through several closely
watched price levels to the lowest since
late 2020 as evidence of deepening
stress within the crypto industry keeps
piling up against a backdrop of mone-
tary tightening.
The largest digital token by market
value tumbled as much as 15 per cent
to $17,599 on Saturday, marking a
record-breaking 12th consecutive
daily decline according to Bloomberg
data. It’s still only the biggest drop
since Monday. The currency recov-
ered some of those losses and was
trading at $19,075 as of 8:30 a.m. in
Singapore on Sunday.
Ether fell as much as 19 per cent to
$881, the lowest since January
2021, before climbing 11 per cent to
TAKING A TUMBLE Bitcoin (price in $)
$1,005 on Sunday morning in
Singapore. The two bellwethers of the
crypto market are both down more than
70 per cent from all-time highs set in
early November.
“What we’re seeing is more liquida-
tions driving prices and sentiment
lower, which triggers more liquidations
and negative sentiment — some flush-
ing-out needed still, but this
Source: Bloomberg
will at some stage exhaust itself,” said
Noelle Acheson, head of market
insights at Genesis, one of the largest
and best-known lenders in the digital-
assets space.
Total liquidations in the crypto mar-
ket were $566.7 million in the
past 24 hours, with Bitcoin and
Ether at around $271 million and $192
million respectively, according to data
from Coinglass.
The latest leg down pushed Bitcoin
below $19,511, the high the coin hit dur-
Find the roaches & make a meal:
ing its last bull cycle in 2017, which it
reached at the end of that year.
Throughout its roughly 12-year trading
Crypto’s new name of the game
history, Bitcoin has never dropped BLOOMBERG by automated protocols that are meant to pro-
below previous cycle peaks. 19 June tect them from insolvency.
Altcoins were no exception to soured Amid it all, the myth was shattered once and
investor appetite in the wake of Bitcoin’s The hot trade in crypto now is no longer pump- for all that this new crypto financial system was
fall, with every token on Bloomberg’s ing coins “to the moon” with tweets full of somehow immune to — or even able to benefit
cryptocurrency monitor trading in the rocket-ship emojis, but rather trying to find from — the economic fundamentals currently
red. Cardano, Solana, Dogecoin and where those roaches are hiding and make a punishing the old system.
Polkadot recorded falls of between 12 meal out of them. The “cockroach It was one of the most dramatic weeks
per cent and 14 per cent, while privacy theory” springs to mind: If you see one in the short history of the cryptocur-
tokens such as Monero and Zcash lost of those nasty bugs scurrying across rency market, bookended by the type
as much as 16 per cent. the floor, chances are there are plenty of announcements investors fear the
A toxic mix of bad news cycles and more hiding behind the fridge or most from a counterparty: We’re sorry,
higher interest rates has been delete- under the sink. but we just can’t return your money
rious to riskier assets like crypto. The Some crafty traders have dispatched right now. It was a week of margin calls,
Federal Reserve raised its main interest bots to prowl blockchains in search of forced selling and important collateral
rate on June 15 by three-quarters of a highly leveraged positions in danger of forced being exposed as way too illiquid in a time of
percentage point — the biggest increase liquidation because the value of their collateral crisis. There were rumblings of hedge-fund
since 1994 — and central bankers sig- is no longer enough to back up their loans. If blowups, tales of opportunistic predatory trad-
nalled they will keep hiking aggressively successful, they get a 10 per cent to 15 per cent ing, job cuts and loud denials of problems from
this year in the fight to tame inflation. cut of the collateral sale — incentives paid out key players proven wrong almost immediately.

Fed’s Waller backs Sri Lanka troops open NEND OF ‘UNIPOLAR WORLD’N

75-basis point July Putin says will

hike in ‘all in’ fight
AGENCIES Policymakers currently
fire to contain fuel riots use nuclear

PHOTO: TWITTER/ROSHAN MAHANAMA

19 June expect to raise the Fed’s AGENCIES
LANKA CONTACTS
Federal Reserve Governor
benchmark overnight interest
rate, now in a range of 1.50 per
19 June

RUSSIAN FIRM arms to defend

Christopher Waller on
Saturday became the latest
US central banker to pledge a
whatever-it-takes approach to
fighting inflation, three days
after the Fed raised interest
rates by three-quarters of a
percentage point and sig-
nalled more hikes to come.
“If the data comes in as I
expect, I will support a simi-
lar-sized move at our July
meeting,” Waller said. “The
Fed is ‘all in’ on re-establish-
ing price stability.” A surge in
inflation, which is at its high-
est level in 40 years, has
made hawks of nearly all Fed
policymakers, only one of
whom dissented earlier this
week against what was the
central bank’s biggest rate
increase in more than a
quarter of a century.
+ petrol, motorists began to pro-
IN BRIEF
Apple’s Maryland workers
now 1st in US to unionise
Apple workers in Maryland voted on Saturday to join a union,
becoming the first retail employees of the tech giant to
unionise in the United States. More than 100 workers in
Towson near Baltimore “have overwhelmingly voted to join
S
cent-1.75 per cent, to at least ri Lanka's military
3.4 per cent in the next six opened fire to contain
months. A year ago, the rioting at a fuel station,
majority thought the rate officials said on Sunday as
would need to stay near zero unprecedented queues for
until 2023. petrol and diesel were seen
That monetary tightening across the bankrupt country.
will likely drive unemploy- Troops fired in
ment, now at 3.6 per cent, to Visuvamadu, 365 kilometres
between 4 per centand 4.25 (228 miles) north of Colombo,
per cent, or possibly higher, on Saturday night as their
Waller said guard point was pelted with
Meanwhile, Cleveland stones, army spokesman
Federal Reserve Bank Nilantha Premaratne said.
President Loretta Mester said “A group of 20 to 30 people
it will take two years for infla- pelted stones and damaged
tion to come down to the cen- an army truck,” Premaratne
tral bank’s 2 per cent target. told AFP.
“It isn’t going to be immediate Police said four civilians
that we see 2 per cent infla- and three soldiers were
tion. It will take a couple of injured when the army
years but it will be moving opened fire for the first time
down,” Mester said in an to contain unrest linked to the
interview with CBS News. worsening economic crisis.
As the pump ran out of
test and the situation esca-
lated into a clash with troops,
police said.
Sri Lanka is suffering its
worst economic crisis since
independence, with the coun-
Heathrow Airport drowns in bags on tech snag
Former cricketer Roshan Mahanama said he was serving tea &
buns to those waiting in queues at a petrol station in Colombo
try unable to find dollars to
import essentials, including
food, fuel and medicines.
The nation’s 22 million
population has been enduring
acute shortages and long
queues for scarce supplies
while President Gotabaya
Rajapaksa has for months
resisted calls to step down
over mismanagement.
FOR CRUDE OIL
Sri Lanka has reached out to
several companies suggested
by Russia’s embassy in
Colombo to buy crude oil,
Energy Minister Kanchana
Wijesekera said on Sunday, in
an attempt by the debt-ridden
island nation to get oil on credit
to keep its only oil refinery
running. Wijesekera told the
media that the Russian
ambassador in Colombo
“asked me to send the replies
of the company, and he will
also intervene in the process”.
The minister said he had replies
from the Russian companies
suggested by the ambassador,
Sri Lanka's Agriculture Sri Lanka's Economy Next news
Minister Mahinda portal reported. “Also we have
Amaraweera on Saturday was sent the message to the Sri
jeered by a group of farmers Lankan Ambassador in Russia,
who protested his visit to an Janitha Liyanage,” the minister
agriculture-related pro- said, adding that the process
gramme in Tissamaharama, a
town situated in the country’s
was taking time. Sri Lanka has
already bought one shipment
southern province in of Siberian crude from Dubai-
Hambantota district, forcing
him to flee the premises.
based Coral Energy in the
international market.
our sovereignty
AGENCIES
19 June
Russian President Vladimir WHEN THEY WON THE
Putin said his country was
not threatening the world
COLD WAR, THE US
with nuclear weapons, but DECLARED THEMSELVES
warned that Moscow “will GOD’S EMISSARY ON
use such weapons to defend EARTH, PEOPLE WHO HAVE
its sovereignty” and declared
the end of “the era of the uni- NO RESPONSIBILITIES —
polar world”. ONLY INTERESTS. THEY
Addressing the St HAVE DECLARED THOSE
Petersburg International
Economic Forum, a showcase
INTERESTS SACRED. NOW
event being held this year IT'S ONE-WAY TRAFFIC,
with almost no Western par- WHICH MAKES THE
ticipation, he returned time WORLD UNSTABLE
and again to the theme of
VLADIMIR PUTIN,
Russia’s sovereignty in a new Russian president
global order: “We are strong
people and can cope with any
challenge. Like our ancestors,
we will solve any problem,
PTI
the entire thousand-year his-
tory of our country speaks of
this.” Putin drew applause
when he reaffirmed his deter-
Nato warns of
mination to continue the long Ukraine
“special military operation”
in Ukraine that has war as battles in
unleashed a barrage of
the east grind on
PHOTO: TWITTER/STUART DEMPSTER

the International Association of Machinists and Aerospace Western economic sanctions.

Workers,” the union said on its website. According to reports, Putin said the United
the iPhone maker recognises some unions and works councils States considered itself
in Europe, and a union in Japan. AGENCIES “God’s emissary on Earth”,
and that Russia was taking its
place in a new world order
Qantas and Airbus to invest whose rules would be set by
“strong and sovereign states”.
$200 mn in sustainable fuels He called the campaign in
Ukraine the action of a “sov-
Airbus and Qantas Airways will make a joint investment ereign country that has the
aimed at kick-starting Australia’s sustainable aviation right to defend its security”,
fuel (SAF) industry. The planemaker and airline plan to and accused the West of
invest as much as $200 million to accelerate the adoption “active military appropria-
of SAF in the country, they said on Sunday ahead of tion of Ukrainian territory”.
the International Air Transport Association’s annual But he appeared to
meeting in Doha. BLOOMBERG acknowledge the scale of
destruction being wrought,
while absolving Russian
forces.
The war in Ukraine could last for
years, the head of Nato said on
Sunday, calling for steadfast
support from Ukraine’s allies as
Russian forces battle for territory
in the country’s east.
Secretary-General Jens
Stoltenberg said supplying
state-of-the-art weaponry to
Ukrainian troops would boost
the chance of freeing its eastern
region of Donbas from Russian
control, Germany’s Bild am
Sonntag newspaper reported.
After failing to take the capital
Kyiv early on in the war, Russian
forces have focused efforts on
trying to take complete control
of the Donbas, parts of

Me or chaos: Macron Shortly before Putin was

due to begin speaking, the
Kremlin said a “denial of
which were already held by
Russian-backed separatists
before the February 24 invasion.

adopts ominous tone service” cyber attack had dis-

abled the Forum’s accredita-
“We must prepare for the fact
that it could take years. We must
not let up in supporting
ahead of crucial vote
A sea of luggage piled up at Heathrow’s Terminal 2 after a technical malfunction. Some passengers had to fly without their bags or tion and admission systems,
face delays at check-in, while many tweeted that they couldn’t access their medicines, which were inside the bags. Travellers forcing him to delay the Ukraine,” Stoltenberg was
complained of two-hour waits at baggage reclaim on Saturday. Airport officials later said that the situation was resolved scheduled start by an hour. quoted as saying. REUTERS
PHOTO: REUTERS

Google co-founder seeks divorce, joins Gates, Bezos in split

French President Emmanuel Macron casts his ballot during
the final round of parliamentary elections on Sunday
French President Emmanuel
Macron and his proxies took
on an apocalyptic tone during
the final week of campaigning
before the legislative election
runoff, saying the country
faces chaos if it doesn’t hand
him an absolute majority on
Sunday. The 44-year-old cen-
trist even took time ahead of
an official visit to eastern
Europe to discuss the vote, tell-
ing reporters on Tuesday that
“nothing would be worse than
adding French disorder to the
world’s disorder.” Three days
earlier in Ukraine, he depicted
his left-wing opponents as a
dangerous force that will bring
destabilisation, amid war and
rising energy prices.
Macron came to power in
2017 promising a revolution in
Europe’s second-largest econ-
omy, but his reform drive was
slowed by protests and
brought to a halt by the Covid
pandemic. Re-elected in April,
he now has another five years
to leave his mark, but his abil-
ity to pass key reforms will
depend on how many seats his
alliance wins in the 577-strong
National Assembly. For law-
making to be smooth, he
needs an absolute majority of
at least 289 lawmakers.
BLOOMBERG
SOPHIE ALEXANDER MALATHI NAYAK
& MARK BERGEN
19 June
Sergey Brin, the Google co-founder
and world’s sixth-richest person,
filed for a divorce from his wife of
three years, making him the third
mega-billionaire to do so in as many
years. Brin filed a petition for
dissolution of his marriage to Nicole
Shanahan this month, citing
“irreconcilable differences,”
according to court documents. The
couple, who have a three-year-old
son, took steps to keep the details of
the split private, requesting that
documents be sealed by the court.
“Because of the high profile
nature of their relationship, there is
likely to be significance public
interest in their dissolution case and
any potential child custody issues,”
according to the filing in Santa Clara,
California. Business Insider earlier
reported on the split.
Brin, 48, has a fortune of $94
billion, according to the Bloomberg
Billionaires Index, derived largely
from his holdings in Google, the
company he co-founded wth Larry
Page in 1998 that later formed the
holding company Alphabet. Both he
and Page left Alphabet in 2019,
although they remain on the board
and still are the controlling
shareholders.
Brin’s earlier marriage to
23andMe co-founder Anne Wojcicki
ended in divorce in 2015.
His most recent split comes a
year after Bill Gates and Melinda
French Gates announced the
dissolution of their marriage and
about three years after Jeff Bezos
and MacKenzie Scott divorced. At
the time, Gates and French Gates
had a $145-billion fortune to divide,
while Bezos and Scott had $137
billion at stake when they broke up.
It’s likely Brin and Shanahan
have a prenuptial agreement since
the relationship began long after he
became a billionaire, said Monica
Mazzei, a partner at Sideman &
Bancroft LLP in San Francisco. But
because the case is being handled by
a private judge, “we will never know
mutually beneficial: The grantor
gets a tax break and the grantee gets
agency over their charitable giving.
Brin was the only contributor to the
foundation, according to the tax
form, with a gift that year of more
than $23 million. Scott has become
the world’s most prolific
philanthropist since her split from
Bezos, granting billions of dollars to
a wide range of causes thanks to the
4 per cent stake in Amazon.com she
ended up with in 2019.
Following the Gateses’ divorce,
their focus has also turned to
philanthropy. Unlike Scott and
Bezos, the former couple had
Nicole Shanahan (left) created the Bia-Echo Foundation and Sergey Brin already made their name as mega-
was the only contributor in 2019, with a gift of more than $23 million donors with their Bill and Melinda
Gates Foundation and there were
the details” of the divorce, she said. livable planet,” according to its questions about how the $50-billion
website. The foundation reported charitable engine would be affected.
Bia-Echo Foundation $16.7 million in assets and made French Gates has since turned
Philanthropy could also play a role $7.4 million in grants, according attention to her own philanthropic
in the divorce agreement, Mazzei to its 2019 tax filing, the most investment firm Pivotal Ventures,
said. Shanahan created the Bia- recent available. which was started in 2015 with a
Echo Foundation, whose focus is on Mazzei said divorce agreements focus on implementing “innovative
“longevity and equality, criminal often include the support of an ex- solutions to problems affecting US
justice reform and a healthy and spouse’s philanthropy because it’s women and families.” BLOOMBERG

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VOLUME XXIX NUMBER 46 ILLUSTRATION: AJAY MOHANTY

the irritants that stand in the way of a broader EU-
NEW DELHI | MONDAY, 20 JUNE 2022 India trade deal. Resumption of negotiations on such
a deal after almost a decade has also been announced.

WTO still lives Contradicting this energy, however, is the first

response of the government to conditions of high
inflation, which included export restrictions and
Outcomes for India were mixed taxes — among other things — on wheat and steel.
The wheat export ban came just weeks after the

O
fficials of the World Trade Organization (WTO) and those from India, prime minister promised to feed the world from
led by Union Commerce Minister Piyush Goyal, have hailed the break- Indian foodgrain stocks. And the steel industry
through compromise that appears to have breathed life into the otherwise pointed to the confusing impulse to both target
moribund governance structure of global trade. In their first set of major exports through subsidies and then impose an
export tax.
agreements for seven years, the countries at the WTO (they operate on the basis of
Investors into India also detect contradictory
consensus, meaning that any member-country can veto a deal) in Geneva came to impulses. On the one hand, there is no doubt that
a decision on issues as varied as patent protections for vaccines, fishing subsidies, several of the PLI schemes, such as those for mobile
and digital trade. India had to significantly soften its objections on several of these handsets and for chipset manufacturing, were
issues, but nevertheless claimed victory in post-agreement press briefings. designed after close consultations with possible
This notion of “victory”, however, needs to be understood in context. India’s investors from the global private sector. On the
demand for weaker intellectual property protection for pandemic-related medical other hand, investors also insist that much of the

India’s trade
requirements, for example — which it, alongside South Africa, has been pushing broader arrogance in New Delhi about the size of
for over a year — may have come too late to make an appreciable difference to con- the Indian domestic market and therefore its mag-
netic attraction for global investment has not abat-
trolling the pandemic. Nor does it cover therapeutics and testing, but only the rel-
ed. They insist this false assumption lures policy-
evant vaccines. Given that most manufacturers of vaccines now believe there is a makers into a fatal overconfidence.

contradictions
supply glut, it is hard to see this agreement being translated into material gains. The WTO experience, where India’s overblown
The question of the fisheries agreement is more complex. This was identified by rhetoric and its quieter willingness to compromise
the WTO’s new leadership as the most likely location for a new agreement that on certain key issues appear to contradict each other,
would break the WTO’s decades-long inability to expand into new areas. is actually a fair representation of the overall inco-
The hope was that inefficient national subsidies, which lead to overfishing herence in India’s trade policy. It is vital for the gov-
outside countries’ exclusive economic zones, could be controlled, thereby leading WTO experience highlights India’s less-than-coherent ernment therefore to do three things.
First, government officials should ratchet down
to more sustainable global fishing stocks. India essentially wanted these subsidies
in richer countries, including China, to be controlled while preserving the right to
approach towards trade their tendency to describe trade restrictions as a
“win” for India or for “aatmanirbharta”. Even if trade
increase subsidies for poorer countries over the next 25 years. In the end, the

A
t the World Trade Organization (WTO) head-
fisheries agreement was a much more watered-down text, which eviscerated the quarters in Geneva, there will be an enormous
crucial article about such inefficient subsidies and retained mainly its control on sense of relief: A global body that most had
subsidies for illegal fishing and those that are targeted towards already depleted assumed was beyond rescue has shown signs of life.
stocks. India will continue to be able to support its close-in fishing communities. The just concluded twelfth ministerial meeting of
India’s threat to torpedo an extension of the moratorium on taxing cross-border the WTO went well beyond its scheduled time to
digital flows thankfully was not carried out. It is unclear what such a tax could come to a series of agreements on several contro-
versial issues, from fishing subsidies to vaccine
bring in, or even how it could be implemented effectively without in effect cutting
patent protection.
off domestic internet users from the wider world. What is important from an
This is another occasion in which India’s digital-policy makers seem to be oper- Indian point of view here is three
ating blind, with no modelling of costs and benefits. The most important issue for things. First, India’s rhetoric has not
India remained, as always, protecting foodgrain procurement for the public distri- changed at the WTO, and it once
bution system (PDS). Given that the government has signalled it wishes to reform again soaked up all the attention as
the system of procurement, it is not apparent why the PDS is always at the heart of a possible spoiler, thanks to charged
its overseas negotiation tactics. In any case, India won not a permanent or long- interventions by senior officials.
Second, in spite of the rhetoric,
term extension on the current carve-out for foodgrain stocks, but a decision to
India’s negotiators significantly
postpone discussion. Overall, it is at least gratifying that the WTO is not as somnolent watered down their opposition in
as many supposed, and it can still take decisions by consensus. It is important, order to ensure an agreement was
however, that India’s trade negotiators go to the next ministerial meeting — to be reached — and, unlike on previous POLICY RULES
held before December 31, 2023 — with a clearer and more forward-looking view of such occasions, the need for con-
the national interests, since many vital decisions have been postponed. With the sensus was considered great enough
MIHIR S SHARMA
country’s general elections due in 2024, the challenge for Indian negotiators could that other parties also sought to meet
prove to be formidable. some of India’s concerns. And finally, once again
many of India’s actual positions did not seem to nec-
essarily align with its actual economic interests.
Persistent problem The broader question raised by these three facts
is this: What can we infer from India’s new stance
India is not creating enough jobs on trade and global integration from its attitude at
the WTO when set aside other recent advances?
had free trade agreements —Japan, Korea, and the
Association of South East Asian Nations — with
Australia, New Zealand, and the People’s Republic of
China in a broader trade pact. This seemed to cap
some years of trade scepticism in New Delhi.
Shortly after the pandemic hit, the prime minister
announced his new slogan of “self-reliance” or “aat-
manirbharta” which has now become something of
a touchstone for his government’s policy decisions.
This was also interpreted by many
as a desire to reduce possible exter-
nal dependencies built up by trade.
Then, after the clashes on the Sino-
Indian border, steps were taken to
check Chinese investment into
India, and informal trade restrictions
placed on the goods trade with the
PRC. On the plus side of the ledger,
though, new production-linked
incentive schemes (PLI) — however
poorly designed — did directly target
an increase in exports.
More recently, two near-contra-
dictory impulses have been visible.
On the one hand, there is clear and welcome effort
being put into negotiating bilateral trade deals, even
if relatively shallow. Two such agreements have
already been announced with the UAE and Australia.
During the visit of the British prime minister to New
Delhi earlier this year, a target of Diwali was set for
an agreement between the UK and India. There is
and investment restrictions are being argued for or
imposed, it is important to shift emphasis and now
describe them as temporary, or necessitated by tran-
sient conditions, rather than as an effective reflection
of a new, across-the-board, “self-reliance” policy.
Second, a more comprehensive and consistent
trade policy needs to be evolved, even if it is not
released to the public. This might help prevent first
responses to problems like inflation being danger-
ous restrictions on trade, for example. It would also
force the government to confront contradictions in
its own actions, for example between the PLI and
export taxes. Finally, it might also convince poli-
cymakers of the importance of reliable streams of
imports in order to grow exports in an age of global
value chains. This might also lead to less emphasis
on headline-friendly “big” deals with marquee man-
ufacturers and more attention being paid to the
building of the ecosystem of smaller producers and
frictionless trade that such deals need to be suc-
cessful over time.
And third, it must recognise that its arrogance
about trade and investment is counter-productive.
What private sector investors say to officials in pri-
vate about their supposed enthusiasm for the Indian
market is not reflected in the actual investment
numbers into manufacturing in particular; it is born
of a simple desire to stay on the good side of the
government, and is nothing like what the private
sector says when the government is not the target
audience. At a time when India is competing with

R
ecurrent protests against changes in the government’s recruitment Here is a short and incomplete timeline of Indian also a great deal of energy being displayed in the far more integrated economies, from Bangladesh to
policy or delays in appointment reflect the state of employment creation actions on economic integration over the past three trade relationship between India and the European Vietnam, for an ex-China investment, it should be
in the country. The ongoing violent protests against the change in the years. In late 2019, a few months before the pandemic Union (EU), especially following the visit of European a little humbler about policymaking.
recruitment policy for armed forces, which have led to a massive loss of hit, India decided to stay out of the Regional Commission President Ursula von der Leyen, during
public and private property, are yet another example in this context. The Union Comprehensive Economic Partnership, which joined which a “Trade and Technology Council” was The writer is head of the Economy and Growth Programme
government’s announcement to hire one million people — essentially to assuage several countries and regions with which India already announced that would hopefully address some of at the Observer Research Foundation, New Delhi
+ critics — also suggests that the economy is not creating enough jobs to absorb
India’s increasing workforce. This has been once again established through hard
numbers by the latest Periodic Labour Force Survey (PLFS) annual report. Clearly,
hiring a large number of people in the government is unlikely to address the under-
lying problem.
Although the annual report, which covered the period between July 2020 and
Inflation: Looking beyond forecasts
June 2021, shows that the unemployment rate declined and the workforce partici-

I
n my previous piece last fortnight, I had said “the
pation increased, it is important to look beyond the headline numbers. According probability that inflation will come down on its
to the report, the unemployment rate (in usual status, which captures long-term own is low. This means if the central banks act
unemployment) declined to 4.2 per cent compared to 4.8 per cent during the pre- harshly now, the markets will crash and then rally. If
vious year, and 5.8 per cent in 2018-19. Since this was the period when the economy they are hesitant, the pain will be prolonged”. Well,
was recovering from a stringent lockdown, the labour force participation rate on June 10, it was announced that US inflation, at 8.6
increased to 41.6 per cent compared with the level of 40.1 per cent in the previous per cent in May, was at a 40-year high, causing mar-
kets in the US as well as India to crash. On June 15,
year. The female workforce participation rate, which has been a significant drag on
the US Federal Reserve hiked the interest rate by as
labour force participation, also improved during this period. much as 75 basis points at one go but the hike did not
However, this improvement was not particularly on account of improved employ- generate the required confidence that inflation in the
ment opportunities. As some commentators have argued, more people joined the US would be easily tamed. The markets continued to
workforce due to the decline in household income. This is also evident in the decline. Investors are perhaps finally
quality of employment. During the period under review, the percentage of people beginning to realise that this turbu-
employed in the agriculture sector increased to 46.5 per cent as against 45.6 per lent phase may be quite prolonged.
cent in the previous year. This is significantly higher than the 42.5 per cent in 2018- Central banks don’t react in pan-
19. Consequently, the proportion of labour employed in the manufacturing sector ic to just one piece of data. But they
declined. This is the exact opposite of the kind of shift India’s labour market needs. do react to the possibility of persis-
tent or entrenched inflation. The
Sustained higher growth with an increase in productivity can be attained only by
Fed appears to think that inflation
moving the labour force out of agriculture. Overall, while the share of self-employed
is getting persistent when it said,
people increased, the proportion of workers earning wages declined. Among the “The committee is moving rates up
workers earning wages and salaries, the percentage of employees not getting any expeditiously to more normal lev-
social security benefit declined marginally to 53.8 per cent compared to the previous els, and we came to the view that IRRATIONAL CHOICE
year but was significantly higher than the 49.6 per cent in 2017-18. we’d like to do a little more front- DEBASHIS BASU
The latest quarterly PLFS report for January-March 2022, which was also released end loading on that.” The Fed may
last week and has limited information compared to the annual report, did not call it front-loading, but others think
show any material change in labour force participation with the recovery in economic it is behind the curve. In a sense, it is guaranteed
activity. As the Indian policy establishment focuses on strengthening the economic that there will be a series of hikes and fairly large
recovery in a worsening global environment, the most pressing challenge will con- ones at that. The fact is the federal funds rate, even
after this hike, remains at 1.6 per cent when inflation
tinue to be employment creation for an expanding workforce. While the government
is 8.6 per cent. What does it mean for us? Whether
is promoting select industries in the manufacturing sector through an incentive rising interest rates will curb US inflation, especially
scheme, it would not be able to create jobs at the scale required. Nearly half of caused by the supply shock, is not clear. But there
India’s labour force is engaged in agriculture and can move only to low-skill man- is a strong inverse correlation between rising rates
ufacturing. India’s labour force participation is also significantly low and would be and emerging markets.
a drag on growth in the medium to long run. With that as the backdrop, the consensus is this:
Inflation will remain high, the Fed will keep hiking
interest rates, and emerging markets will remain
under pressure. And yet, we simply don’t know
enough even today. How much of the inflation was
due to the 0 per cent rate, $5 trillion in bond pur-
chases, and $7 trillion in national debt — all caused
by the Fed and successive US governments? To
deal with the shock of the pandemic, the US made
stimulus payments of up to $1,200 directly to every
citizen; small businesses could borrow money at
very low rates, and unemployed citizens were paid
$600 per week. If that is being unwound, what will
be its impact on demand? How much of the infla-
tion is due to China’s lockdown
and the Russian war with Ukraine,
which has disrupted supply chains
and led to high energy and food
prices? No one, not even the cen-
tral banks, has exact answers. And
yet, there has emerged a
widespread consensus about rising
inflation and rising interest rates
leading to falling markets.
Remember, markets have a way of
disappointing a strong consensus.
The forecasting business
We repeatedly fail to make correct
forecasts about complex macroeconomic events and
never seem to learn from experience. Two years ago,
when the pandemic hit the world, there was a con-
sensus about economic doom. With movements of
people and goods across the country completely
stopped, it was expected that output would shrink,
unemployment would be sky-high, and a recession
would be inevitable. That was the popular consensus
and it was hopelessly wrong. Do you hear people
talking about BRICS any more? In 2003, Brazil,
Russia, India, China, and South Africa were touted
as the new economic superpowers. Only China lived
up to its promise. In 2007, the world was gripped by
the “Peak Oil” theory and perpetually rising oil
prices. It turned out to be false. Oil, like any other
commodity, rises and falls simply on demand and
supply. In 2009-10 a double-dip recession was con-
sidered inevitable after the global financial crisis of
2008. It did not happen.
When the Fed kept the interest rates low for a
prolonged period after the 2008 crash, Ray Dalio,
founder of the world’s largest hedge fund, feared
hyperinflation and his team was reading up about
the German economy and markets in the post-World
War I period, when that country suffered hyperin-
flation. In 2011, Portugal, Ireland, Italy, Greece, and
Spain (PIIGS countries) all seemed headed for insol-
vency. It did not happen. We do not know whether
the current consensus about inflation will also be
wrong but the more widespread the consensus the
more likely it is to fail.
Meanwhile, macroeconomic conditions will con-
tinue to unfold in our lives with a lot of twists and
turns. Last week, oil and natural gas prices fell
sharply, which ought to boost sentiment this week.
As we navigate the choppy waters, there will be sev-
eral such periods of relief when the tide would seem
to turn for the better. If the central bank fears a sharp
demand slowdown, it may pause its rate hikes, which
would fire up stock prices again. Finally, stock mar-
kets often presage actual improvement in economic
conditions while the reported economic data invari-
ably captures the past. It may be worthwhile to pay
attention to what the markets are telling us, as they
did during the pandemic, rather than rely on con-
sensus forecasts.
The writer is the editor of www.moneylife.in
Twitter: @Moneylifers

The recluse who confronted the mystery of the universe
wielding journalists advancing on his
Edinburgh apartment. So he made a pre-
emptive decision: “I decided not to be
home.” On the morning of the
announcement, Higgs crept out his back
door, caught a bus to a nearby town, tucked
BOOK REVIEW himself into a pub and hunkered down
with a medicinal pint of ale.
DEBORAH BLUM Thus, when Higgs did win the Nobel
(along with the French physicist François
reminder letters to confirm appointments.
Their conversations, not entirely
revealing, were mostly conducted via
Higgs’s treasured landline phone. As a
result, although his publisher describes
Elusive as “the first
major biography of
Peter Higgs,” Close
seems less sure of
that, describing his
and its failure because of his workaholic decades, the research community would
habits; a resulting, paralysing depression; argue, debate, build and expand on his
his dedication to social justice causes, idea, setting out on a quest to confirm the
which at one point led him to suspect that existence of the Higgs boson and with it
he had “become an embarrassment” to our own understanding of the universe.
some of his At a basic level, Higgs’s theory belongs
ELUSIVE: How colleagues. After to a fundamental and puzzling question:
Peter Higgs all, Higgs notes Where does the mass of the universe come
modestly, “The from? Using the known rules of physics,
Solved the
Mystery of Mass portion of my life from electromagnetism to quantum
through much of the history of particle
physics and introducing the key players,
the insights by others in the field who
moved the ideas forward and the
eventual decision to build a machine in
Switzerland — the Large Hadron Collider
— to test the possibilities. The LHC
would find confirmation for the boson’s
decay products in 2012. Close brings to
this story an insider’s knowledge and a
combat-ready willingness to defend
Higgs against his occasional critics, at
one point dismissing the high-profile
British physicist Stephen Hawking as a

I
n early October 2013, the Nobel Prize
committee was preparing to announce
the winner of its award in physics. The
leading candidate — as pretty much
everyone knew — was an 84-year-old
Scottish scientist named Peter Higgs, who
was not feeling nearly as joyful as you
might think. Yes, he wanted to win the
award, yes, he wanted to be recognised for
his pioneering insights into how
subatomic particles build our universe. He
just wanted to be recognised for it quietly.
But as a theorist already heralded for
his 1964 work predicting the Higgs boson
(sometimes called the God particle), he
knew he was pipe-dreaming. He could
almost hear the thunder of microphone-
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X
Englert), neither journalists nor fellow
physicists could find him. “We don’t know
where he is,” one University of Edinburgh
colleague sadly explained to an
exasperated reporter. One is left to wonder
if Frank Close chose the title for Elusive as a
reference to the glimmering subatomic
particle of Higgs’s theory — or to the
theorist himself.
As Close notes, “Peter Higgs has
managed to avoid much of the pace of
modern life.” He does his best to avoid both
email and cell phones. Close, a physicist
himself and the author of numerous
popular science books, is a long-time
colleague and friend of Higgs’s, but to
research this volume he was forced to mail
book as “not so for which I am mechanics, Higgs raised the possibility of man with a “singular genius for playing
much a biography
Author: known is rather an unstable subatomic particle that, the media.”
of the man but of
Frank Close small — three through a series of fizzing interactions, In other words, this is a very human
the boson named Publisher: Basic weeks in the could lend mass to other particles. He telling of the ways that we’ve figured out
after him.” Books summer of 1964.” predicted this particle would be a boson — at least some of the mysteries of our
Close’s It is those three a notably massive subatomic particle that universe since the mid-20th century.
description is more
Price: $30 weeks that anchor helps hold matter together — and that it “What does the discovery reveal about
accurate. The Pages: 304 the real story in this would exist in an energy field that enabled the cosmos and our place in the
biographical facts book, a clear, vivid the interactions. Higgs suggested a path to universe?” Close wonders, and he ends
add up to more of a and occasionally confirming the existence of the boson and his book on a note of additional mystery,
brisk sketch than a richly detailed portrait. even beautiful portrait of a scientific the eventual measurement of its decay reminding us that there are great
This is not to deny that there are moments breakthrough: the tale of how a relatively products. In doing so, Close writes, the achievements in physics to come and
of sharp and even bitter insight: Higgs’s obscure Scotland-based physicist theory issued a subtle challenge: “Is this that tantalising questions still shine
belief that his antisocial personality developed a stunning theory, one that just a clever piece of mathematics or does in front of us, their answers still out of
developed during a sickly and lonely would help illuminate the invisible, nature really work this way?” reach, ever elusive.
childhood in northern England — “I grew particulate web that holds our universe Close uses that question as a
up a rather isolated child”; his marriage together. And how in the following launching point, taking the reader ©2022 The New York Times News Service

Investor
NEW DELHI | low pricing power, has assigned a ‘hold’ rating on the stock
MONDAY, 20 JUNE 2022
Cost turbulence may force
recovery jetlag for airlines
Price hikes may plague
demand, robust
passenger traffic
notwithstanding
RAM PRASAD SAHU
Mumbai, 19 June
R
ecord high prices of aviation
turbine fuel (ATF), a depreciat-
ing rupee, demand trends in
the upcoming lean season, and com-
petitive pressures could dent
near-term prospects of listed aviation
stocks - InterGlobe Aviation (IndiGo)
and SpiceJet.
Both airline stocks have shed about
11 per cent each since the start of June.
Given the multiple headwinds faced by
the aviation sector, there could be
more downsides for the two airlines.
The biggest worry for the sector
though is the rise in jet fuel price,
which accounted for 40 per cent of
their costs in 2021-22.
Oil-marketing companies on
Thursday announced a hike in price to
its highest-ever levels. These vary
between ~1.41 lakh per kilolitre and
~1.47 lakh per kilolitre, depending on
state taxes.
ATF prices are up 120 per cent year-
on-year and 36 per cent on a sequential
basis. The movement of ATF prices will
need to be tracked, given crude oil
prices have corrected to three-week
lows on Friday due to demand worries
brought on by interest-rate hikes.
Another factor that could inflate
costs is the movement of the rupee
More stocks stare at 52-week lows
+
An average 267 stocks hit their
52-week lows every day last week
on the BSE as the rout took key
benchmark gauges to
multi-month lows.
In the preceding week, an
average 78 stocks hit 52-week lows
— in line with this financial year’s
(2022-23, or FY23) average of 75.
A worsening market breadth is
an indicator of weak investor
sentiment.
The number of stocks hitting
their lower trading limits, too, has
shot up.
Typically, liquidity in the smaller
counters is shallow. Any change in
sentiment can lead to sharp
reversal in fortunes.
The number of stocks that hit
THE LONG AND SHORT OF IT
Number of stocks dropping to 52-week lows shot up last week
Securities touching 52-week high
Securities touching 52-week low
152
28
‘Good chance that foreign money returns around Diwali’
It has been a few tumultuous months for global financial markets as they come to terms
with central banks’ action to tame galloping inflation. Still, RAHUL ARORA, chief executive
officer for institutional equities at Nirmal Bang, is hopeful and tells Puneet Wadhwa in an
interview that the markets always manage to climb the wall of worry and find ways to
make new highs. Edited excerpts:
Have the financial markets fully
factored in the likely global central
banks’ action over the next few
months?
To a large extent global central banks’
movements have been
priced in to a reasonable
extent and that is reflected in
bond yields, too. The silver
lining, if any, is that these rate
hikes are being front-loaded
and we should see most of RAHUL
them behind us in the next Chief executive officer
for institutional
three-four months. While equities, Nirmal Bang
their effects will be felt with
a lag, equity market valuations, to a large sharp deceleration in growth, coupled
extent, factor this in.
Is there any silver lining for global
equity markets amid all this gloom
and doom?
The biggest silver lining is that the mar- which should see increased government
kets always climb the wall of worry and spending — could spur demand in the
find ways to make new highs. This has economy and could be positive triggers
happened after every crisis or war. The for the markets and flows.
biggest economic threat to the world now
is inflation and interest rates -- that devil How long do you see domestic
is known; the war is known; the economic institutions (DIIs) and retail investors
impact to a large extent is measured. keep their spirits up?
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X
The Smart
against the dollar. Last week, the
rupee had plunged to its record low
of ~78.22 against the greenback.
Although the rupee has recovered
somewhat, it is down 3.5 per cent in
the quarter. With 70 per cent of airline
costs linked to the dollar, the strength-
ening of the American currency will
be a major headache for Indian avia-
tion companies.
Says Ajay Singh, chairman and man-
aging director, SpiceJet, “The sharp
increase in jet fuel prices and the depre-
ciation of the rupee have left domestic
airlines with little choice but to imme-
diately raise airfares. We believe a mini-
mum 10-15 per cent increase in fares is
their 52-week highs last week
dropped to 73, against FY23’s
average of 121 and 200 during the
first week of April.
SAMIE MODAK
463
62
Source: BSE
Given most central bank projections,
inflation, though high, will be on a declin-
ing trend as the year wears on. The pes-
simism is justified and the market fall is
justified, but it seems like a lot of it is in
the price.
By when do you see foreign
money chasing emerging
markets, especially Indian
equities?
ARORA There is a good chance of for-
eign money coming back
into the Indian market
around Diwali this year. A
with high inflation and its resultant
impact on corporate earnings, remains
the single biggest risk to the Indian mar-
kets. A good monsoon, as predicted, and
the build-up to the 2024 elections --
DEMAND STAYS STRONG
Quarterly
Q3FY22 Q4FY22 February March April May June*
Passengers 30.0
Passengers (pre-Covid)* 38.2
% of pre-Covid period 78.5 69.8
Respective periods before Covid; *June numbers extrapolated based on first 14 days
required to ensure the costs of opera-
tions are better sustained.”
While IndiGo had earlier indicated
that the prevailing fares are much lower
than the pricing caps in force and that
higher fares have so far not influenced
MF cash holdings on the
rise at 3% of equity assets
SACHIN P MAMPATTA
Mumbai, 19 June
The amount of cash mutual
funds (MFs) hold has been
on the rise.
They held the equivalent
of 1.9 per cent of equity
assets in cash in June 2021,
reveals the data from tracker
primemfdatabase.com. This
has since risen to 2.99 per
cent as of May. The total
amount in cash is up from
~31,598 crore to ~59,886 crore
in the same period.
The rise could also be a
function of inflows, accord-
ing to a financial services
executive. He suggested MFs
could simply be getting
more cash than they would
have deployed rather than
actively seeking to sell port-
folio stocks to ride out recent
market volatility.
“I don’t think it’s an asset
allocation call,” said the
executive.
Individual fund houses
are sitting on more cash than
others. There were at least
five fund houses that held
more than 5 per cent cash as
DIIs, especially retail investors, have
been shock-absorbers for the Indian
markets this time around. Had they not
been there, amid the kind of FII selling
we’ve seen, the Nifty50 easily could have
been around 12,500 levels. But the disci-
plined approach to investing via system-
atic investment plans (SIPs) has shown
the coming of age of the Indian retail
investor. Of course, confidence to some
extent would be shaken, especially given
the fall in new generation stocks, which
were listed with much fanfare. Still, the
spirit seems to be intact.
Are the markets prepared for
QUICK TAKE: NEW MANAGEMENT, VALUATIONS TO SUPPORT UNITED SPIRITS “If there is a recession, it’s already
been priced into the stock markets.
(Price ~) The stock of liquor major United Spirits is down 12 per cent The bottom is probably somewhere
over the past month. Edelweiss Securities, while in the next three
733 months”
highlighting concerns on high competitive intensity and
MARK MATTHEWSD
846.4 Head of research
due to valuation comfort and appointment of a new for Asia,
managing director Julius Baer
<
to offset the surge in ATF price, possibly
reaching a point of demand elasticity
in the travel industry.”
A 5 per cent movement in crude oil
is expected to impact operating profit
STREET
SIGNS
before rentals by 8.5 per cent, they add.
What should support higher fares Will Nifty sustain 15,000 levels?
are strong traffic trends. Average daily The Nifty has broken its decisive support
fliers are upwards of 375,000 in June - around 15,600 after last week’s brutal
this is about 2 per cent higher than the correction. Analysts say this could result in the
May numbers. Given that the number benchmark index dropping below 15,000
BRENT CRUDE ( $/BBl) of daily departures, too, has increased levels. Since markets are already oversold,
by a similar quantum, load factors have some believe there could even be a sharp
remained steady. Most brokerages point reversal due to short covering. According to
out that the overall monthly passenger
traffic in May and June so far at around
analysts, short-term support for the Nifty on
the downside is around the 14,800-15,000
11-11.5 million (94 per cent) are near pre- zone. On the upside, it faces resistances
pandemic levels. around the 15,500-15,750 area.
70.1 117 The ideal situation for airline com-
panies is price hikes and improving Delhivery anchor freeze to lift
load factors. However, capacity Shares of logistics major Delhivery may come
additions and rising competition could under pressure on Monday as a freeze on shares
lead to a focus on keeping passenger allotted to anchor investors ends. Anchor
traffic at elevated levels. investors hold 6.6 per cent stake in the
RUPEE SPOT IndiGo has indicated a 55-60 per company. The lock-in ends for only half these
In inverted scale cent increase in available seat shares; the other half will remain under freeze
miles/kilometres in 2022-23 (FY23). for 60 more days. The stock fell 10 per cent last
Competitive intensity is set to week amid sell-off in the broader market.
78.08 increase with the entry of Akasa Air and Shares of Delhivery last closed at ~467, slipping
Jet Airways. A lot will depend on their below its issue price of ~487. Meanwhile, anchor
72.90 stance vis-à-vis pricing. lock-in also ends for two more companies this
Say Ashish Shah and Vaibhav Shah week — Venus Pipes and Tubes and Paradeep
of Centrum Broking, “Given the steep Phosphates.
losses suffered by airlines over the
past two years, we expect the current QSR stocks whet investor appetite
Source: Bloomberg Compiled by BS Research Bureau pricing discipline in the industry to Shares of quick service restaurants (QSR) have
continue, adjusted for any seasonality underperformed the market this year.
impact. Any significant increase in Analysts say investors with a high-risk
In million competitive intensity could derail this appetite can consider buying these shares at
Monthly -2022 assumption.” beaten-down levels. They say price hikes
The Street will track the movement affected by QSR companies have been
of yields, given the multiple moving absorbed well, and demand momentum
24.7 7.7 10.6 10.5 11.4 11.2 parts in this space. ICICI Securities continues to be impressive in the first quarter
highlights that yields will be tested in of 2022-23. Moreover, with the dine-in
35.4 12.4 11.6 11.0 12.2 12.0 the second quarter of FY23 against a channel performing well, QSR players are also
62.1 91.4 95.5 93.4 93.3 seasonally weak period and some focusing on menu innovation and planning
Source: JM Financial improving capacity. accelerated store expansion. Sapphire Foods
Given the elevated costs and com- (down 22 per cent year-to-date, or YTD) and
demand, the cost surge could well petitive overhang, investors should stay Jubilant FoodWorks (down 33 per cent YTD) are
change this. away from the sector caught right now preferred picks by analysts.
Say Ashutosh Somani and Heet Vora between costs and competitive pres- Contributed by SUNDAR SETHURAMAN
of JM Financial Research, “Despite tak- sures on the one side and possible
ing a significant price increase, airlines demand hit due to higher ticket prices
may be required to take further hikes on the other.
EVENTS THIS WEEK
f Date Particulars
June 20
June 21
n UK - Rightmove House price
n US - Chicago Fed Nat
June 22
Activity Index
n US - existing home sales
n UK - CPI & Core CPI
This is higher than the n AGM: State Bank of India
GROWING CASH PILE ~11,863.09 crore seen in April,
June 23 n US - current account balance
nTotal cash (in ~crore) Cash level (as % of equity holdings) according to the data from
2.99 n US - jobless claims
industry body, the Associa-
tion of Mutual Funds in India n US - S&P Global PMI
1.90
(Amfi). The number of such manufacturing/services/
SIP accounts was at an all- composite
time high of 54.8 million in n UK - S&P Global/CIPS PMI
May, reveals Amfi data.
manufacturing/services/
46,869
59,886
58,664
40,430
43,940
Unitholders invested a
38,652
60,514
31,598
50,331
47,633
41,481
41,817
total of ~18,529.43 crore in eq- composite
n AGM: Tata Elxsi, Canara Bank
uity funds in May. This incl-
udes both SIP investments,
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June 24 n US - new home sales
as well as other lump-sum
2021 2022 n China - BoP current account
contributions. Retail inves-
Source: primedatabase.com
tors held around ~18.49 tril- balance
of end-May. There were four have been placed for execu- lion in equity assets as of May. n AGM: Voltas
such fund houses in May tion. He added that he did The inflows have come June 25 n AGM: Infosys
2021. None of them had dou- not expect cash levels to despite a challenging time for
ble-digit cash holding, unlike increase significantly bey- markets, with a correction of Filtered for BSE200 companies
now, with the top cash hold- ond the current levels. nearly 20 per cent from their Source: Bloomberg, exchange, websites
ing at 10.8 per cent for Parag MFs were net-buyers by all-time highs in October. Compiled by BS Research Bureau
Parikh Financial Advisory an average of ~14,992 crore The S&P BSE Sensex has
Services (PPFAS) Asset per month in 2021-22 (FY22). dropped more than 10,000
Management. They were net-buyers by points from its peak to close
Rajeev Thakkar, chief ~22,371 in April, the first at 51,360.42 on Friday. The
investment officer and month of the latest financial index is a benchmark of 30
TOP BULK DEALS
director at PPFAS Asset year (2022-23), shows regu- companies, counted among Date Scrip Client Price(~)
Management, said latory data. India’s largest. Its movements
increased cash levels could They received ~12,286 are seen to be broadly repre- Jun 17 Delta Corp Rakesh R 167
be an outcome of inflows crore in May through system- sentative of how the market Jhunjhunwala (S)
towards the end of the atic investment plans (SIPs), is doing. Jun 17 Fiem Industries Elevation Capital V 1,020
month, or prices remaining which make automatic peri- FII Holdings (S)
above levels at which orders odic monthly investments. More on business-standard.com
Jun 15 Nxt Digital Aasia Exports (S) 357
Jun 15 Nxt Digital Hinduja Realty 357
Ventures (B)
Jun 17 Fiem Industries Sageone Investment 1,020
Managers (B)
PHOTO CREDIT: KAMLESH PEDNEKAR Jun 13 Uflex Flex International (B) 585
ment manages its borrowing pro-
gramme. But as things stand, I do not Jun 13 Uflex Montage 585
think the market is factoring in a material Enterprises P (S)
deterioration from here. Jun 17 Indiabulls Integrated Core 64
Real Estate Strategies (S)
THE What has been your investment
Jun 17 Fiem Industries Sageone Flagship 1,020
strategy against the backdrop of rising
PESSIMISM IS interest rates and surging inflation? Growth 2 Fund (B)
JUSTIFIED AND Sectors that have seen time-wise and Jun 17 Mangalam Rambara Trading (B) 263
price correction in the last couple of
THE MARKET years can make a comeback in a material
Cement
FALL IS way; sectors, such as banking, fast-mov- Jun 15 KBC Global Nomura Singapore (S) 4
ing consumer goods (FMCG), and of late
JUSTIFIED, BUT chemicals, have seen a reasonable cor-
Jun 15 Hindustan Shiv Narayan Baldi 27
Motors HUF (S)
IT SEEMS LIKE rection. The entire rural theme will be a
good play in the run-up to elections. Jun 17 Lancer Container Abdul Khalik A K 200
A LOT OF IT IS Dark horses can be information technol- Line Chataiwala (S)
IN THE PRICE” ogy (IT) and cement. Jun 17 Lancer Container Abdul Khalik A K 200
Line Chataiwala (S)
worsening macros – high inflation, Borrowing is becoming costlier. To
rupee depreciation, widening fiscal what extent will all this dent demand Jun 14 HKG Shah Yatin 14
and current account deficit (CAD), and and impact corporate earnings? Bhupendra (S)
rising Covid cases? While earnings have been cut on a case- Jun 15 KBC Global Wealth 4 U 4
Again, here I think, the news is known. to-case basis, depending on the impact Hospitality Con (B)
There is nothing unknown. The rupee of inflation or rising interest rates, what
has already breached 78 to the dollar but is interesting to note is that on the con- Jun 15 KBC Global E Waste Recycling (B) 4
I don’t think the Reserve Bank of India sumer discretionary side, there has not Jun 14 Rachana Infra Geetaben 139
(RBI) will want it to be in continuous been too much of a volume impact as Dhaneshbhai Soni (S)
depreciation and step in whenever seen in quick-service restaurants (QSR),
needed. On current evidence, we see no multiplex, select paint companies, etc. Jun 13 Future Retail Vistra Itcl India (S) 8
reason to rework our recently put targets On average, we have cut earnings out- Jun 14 HKG Ramesh Sawalram 14
on CAD, inflation, and fiscal deficit. Of looks for the affected sectors between 5 Saraogi (B)
course, a lot depends on the extent of gov- and 20 per cent, but we do believe that
ernment spending in the run-up to the corresponding stock prices are captur-
general elections and how the govern- ing these cuts. (B) -Buy (S) -Sell Source: Exchanges
 NEW DELHI | MONDAY, 20 JUNE 2022 PERSONAL FINANCE 11 <

Institute held liable for Sign insurance proposal form

lack of safety measures
tect as well as a structural engineer on land
allocated under the Suvarana Kayaka
Kaushaya Abhivruddi scheme sponsored
after checking declarations
by the government of Karnataka. It
The buyer, and not the insurance agent, has to bear the consequences of not revealing critical info
claimed that the incident had occurred in
the terrace area, which was a prohibited SANJAY KUMAR SINGH Co. Ltd. versus Rekhaben tains a photocopy of the final
zone. A board restricting students and staff Nareshbhai Rathod case proposal form based on which

N
from going there had also been put up. arendra Singh Rathore decided by the Supreme Court the underwriting was done.
The institute argued that it could not be had purchased a life on November 24, 2019, it was “Customers again have an
held liable as Swarna was over 18 years old, insurance policy for held that suppression of facts in opportunity to check the decla-
and was mature enough to understand the ~30 lakh from HDFC Standard the proposal form would render rations made in the proposal
CONSUMER PROTECTION caution notice, but had disregarded it and Life Insurance. Rathore died of the insurance policy voidable by form,” adds Mehta.
JEHANGIR B GAI voluntarily gone to the terrace to consume breathlessness and a heart the insurer. Besides pre-existing dis-
prohibited drugs and tobacco. The insti- attack. The insurer repudiated “The NCDRC judgement in eases, customers must correctly
tute claimed it had spent ~1,56,000 the claim after which Rathore’s this case relies on the Supreme reveal information about their
Swarna Jaswanth had taken admission in towards Swarna’s medical expenses. wife filed a complaint with the Court judgement in the above- income and all the other policies
the Vogue Institute of Fashion Technology After considering the oral and doc- State Commission, wherein she mentioned 2019 case, where held by them.
near Bengaluru’s Football Stadium umentary evidence, the State Commission stated that her husband had the latter said that if the
Complex. The institute was run by held the institute guilty of negligence. It signed the application form in insured signs an insurance Customer bears the brunt
Manduda Educational Trust through its observed that Swarna was merely 19 years good faith at the insurance contract, then she has to abide LESSONS FROM SUPREME COURT JUDGMENTS It is the customer’s responsibil-
chairman M.M. Kairappa. old when she died, and that she would agent’s behest. by its provisions. The insured ity to do the due diligence at the
During the first academic year, Swarna have earned nothing less than ~25,000 per The insurer argued that can’t later claim she signed the Sulbha Prakash obtain a life insurance time of purchase. Failure to do
secured first class. The next year, the col- month after completing the B.Sc. F.A.D. Rathore had concealed material proposal form filled by the Motegaonkar vs LIC of policy is duty bound to so will mean that the claim will
lege shifted its students to another build- course. So, it computed ~25 lakh as com- information regarding the med- agent without reading it,” says India (October 5, 2015) disclose all material facts be denied. The ultimate loss will
ing located at Kasaba Hobli while it was pensation, and ordered this amount to be ical ailments he had been suf- Sumit Kumar, a New Delhi- n Death due to ischaemic bearing upon the issue as be hers.
still under construction. Swarna’s parents paid along with 9 per cent interest from fering from since 2008. The based consumer lawyer. to whether the insurer “Nowadays, with policies
heart disease and
objected, but the institute claimed that all the date of complaint. Commission ruled in favour of He adds that after the 2019 would consider it being issued after just a video
precautionary measures had been taken, The order was challenged in appeal. the insured, stating that hyper- Supreme Court judgement, con-
myocardial infarction had conversation, you may be able
nothing to do with the appropriate to assume
and that construction would be completed The National Commission observed that tension and diabetes are not sumer courts are unable to hold to get one even if you hide a dis-
concealed ailments— the proposed risk
soon. In November 2011, the the layout plan did not life-threatening diseases. Even agents responsible, which is ease. After three years, insurers
institute declared a vacation The National show any terrace on the if the insured had a problem in why in this case the NCDRC lumbar spondylitis with Manmohan Nanda vs are anyway bound to pay the
to complete construction. Commission observed second floor. Also, the con- the pancreas, that could not ha- requested IRDAI to formulate PID with sciatica—and United India Assurance claim under Section 45 of the
Swarna attended classes the layout plan didn’t struction of the second ve been the cause of his death. new guidelines for agents. hence insurance claim (December 6, 2021) Insurance Act. But if there is an
regularly when they show a terrace on the floor had been completed. The insurer then filed an Kumar reiterates the advice should not be denied early claim, the insurer could
resumed on December 5, second floor, and the It noted that the institute’s appeal with the National that customers must sign the n Insured died due to appoint an investigator. And if
2011. On December 14, 2011, institute’s contention contention that the step Consumer Disputes Redressal proposal form after reading it, Bajaj Allianz Life myocardial infarction. But the investigation reveals that a
during the recess she went the step wasn’t broken was not broken was falsi- Commission (NCDRC), which to ensure that all the informa- Insurance Company he had made known to past ailment was hidden, the
along with her friends to the was falsified by fied by the photographs ruled in the insurer’s favour. It tion entered in it is correct, or vs Dalbir Kaur the insurer he had claim could be denied,” says
canteen on the second floor. photographs produced by it. The stated in its judgement that the that information about past (October 9, 2020) diabetes mellitus II, so Melvin Joseph, founder, Finvin
While returning, when she National Commission also causes of death—heart attack medical ailments, which they insurer must indemnify Financial Planners.
put her foot on the first step, she lost her agreed that suitable safety precautions, and respiratory disorder—had had provided to the agent, was n A proposer who seeks to By then the insurer would
balance, as it was broken. Since there was such as putting up a boundary, grill or rail- a direct link with the undis- incorporated. Source: NCDRC judgment in HDFC Standard Life Insurance vs have collected its premiums
no railing, she toppled on the glass gal- ing had not been adopted. It upheld the closed diseases: pancreatitis This case also highlighted Vishan Rathore (June 16, 2022) while the agent would have
lery, which broke, and she crashed right finding that this constituted negligence and diabetes mellitus. the point that the nature of the gathered his commissions. The
till the ground floor. She sustained for which the institute would be liable. The National Commission, disease that ultimately causes insurer, the customer has to sign ing director (MD), Secure Now insured is finally left to bear the
injuries to her head and spinal cord, and The National Commission also however, urged the Insurance the insured’s death would have a benefits illustration, which Insurance Broker. brunt of non-disclosure.
went into a coma. The institute took observed that the fee of ~3,20,000 Regulatory Development a bearing on court judgements. states how much premium she Once the proposal form goes “Stating prominently in the
Swarna to hospital, but she expired on charged for the course definitely justified Authority of India (IRDAI) to “The courts will take into will have to pay, the rate of to the insurer, the latter makes proposal form that not revealing
December 25, 2011. the expectation of future earning examine the role of agents while account whether the undis- return used for projecting a verification call. A one-time past ailments could lead to
Swarna’s parents and sister lodged a capacity of ~25,000 per month, and held soliciting life insurance policies closed ailment had any correla- returns, the surrender value if password (OTP) is sent to the repudiation, as proposed by
police complaint and also filed a consumer that the compensation awarded was rea- and formulate new guidelines tion with the cause of death. In the insured exits prematurely, customer’s mobile number to NCDRC, is a step in the right
complaint before the Karnataka State sonable and justified. for them. It also urged IRDAI to case there was no correlation, and so on. “This is a critical doc- ensure she picks up the phone. direction,” says Joseph.
Commission. They claimed that Swarna Accordingly, by its order of June 14, modify the proposal form so the courts may rule in favour of ument on which the regulator During this call, the insured is He suggests the declaration
was a bright student, and they had 2022, delivered by Justice Ram Surat Ram that the point—non-disclosure the insured’s nominee. But if maintains tight control, specif- again asked about past ailments to be made by the customer in
invested in her education, but her death Maurya, the National Commission of medical conditions would there was a correlation, the ically with regards to the returns and other details. “When the this regard must be put in a sep-
due to negligence had caused them a loss. dismissed the appeal and affirmed the lead to repudiation of claim— courts are likely to rule in the shown, so that the customer verification call comes, the cus- arate box (or else it would get
The institute contested the case stating decision of the State Commission. was featured prominently. insurer’s favour,” adds Kumar. buys the policy with the right tomer must answer it herself,” lost in the lengthy proposal
that construction was being carried on expectations. Understand it says Mehta. form) and a separate signature
under the supervision of a qualified archi- The writer is a consumer activist Don’t sign blindly Buyer beware before signing,” says Kapil When the policy document should be taken from the
In the Reliance Life Insurance Before the policy is sent to the Mehta, co-founder and manag- is delivered, the package con- insured for it.

Possession Notice (For Immovable Property) Rule 8-(1)

Whereas, the undersigned being the Authorized Officer of IIFL Home Finance Limited (Formerly known as India Infoline Housing Finance Ltd.) (IIFL-
+ HFL) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and in exercise of powers con-
ferred under section 13(12) read with Rule 3 of the Security Interest (Enforcement) Rules 2002, a Demand Notice was issued by the Authorised
Officer of the company to the Borrower/Co-Borrowers mentioned herein below to repay the amount, notice is hereby given to the borrower and the
public in general that the undersigned has taken possession of the property described herein below in exercise of powers conferred on him under
Section 13(4) of the said Rules. The borrower in particular and the public in general are hereby cautioned not to deal with the property and any deal-
ings with the property will be subject to the charge of IIFL HFL for an amount as mentioned herein under with interest thereon.
"The borrower's attention is invited to provisions of sub-section (8) of section 13 of the Act, If the borrower clears the dues of the "IIFL
HFL" together with all costs, charges and expenses incurred, at any time before the date fixed for sale or transfer, the secured assets
shall not be sold or transferred by "IIFL HFL" and no further step shall be taken by "IIFL HFL" for transfer or sale of the secured assets.
Name of the Borrower(s) / Description of the Secured Asset Date of Date of
Co-Borrower(s) Total Outstanding Dues (Rs.) Demand Possession
(Immovable Property) Notice
Mr. Vikash Kumar, Mrs.Nibha All that piece and parcel of:Flat No T8-1001,10Th Floor Tower 8, Type Rs.7,21,024.00/- 28- 15-
Baranwal, V.K. Hardware 2 Bhk Unit Type-A Mahira Homes-95", Area Measuring 508 Sq. (Rupees Seven Lakh Twenty One March- June-
(Prospect No IL10152051 ) Ft.,Village Dhorka, Sector 95, Gurgaon, Haryana, India, Pin-122005 Thousand Twenty Four Only ) 2022 2022
Mr. Pawan Kumar All that piece and parcel of: House Built At Plot No. 270-D, admeasur- Rs.21,29,677/- (Rupees Twenty One Lakh 16- 16-
Mrs.Manju ing 83.61 sq. mtr.,Situated at Khasra No. 39, Of Mauja Salempur, Twenty Nine Thousand Six Hundred Seventy March- June-
(Prospect No 861339) Vaikunth Vihar Colony, Mathura, 281001, Uttar Pradesh, India Seven Only) 2022 2022
Alaknanda Vaults Private All that piece and parcel of: G1-2104, admeasuring Prospect No. 761550 is Rs. 81,89,976.00 /- (Rupees 04- 15-
Limited, Mrs. Sheetal 1853 sq. ft., 3Bhk 20Th Floor, The Grand, Village Eighty One Lakh Eighty Nine Thousand Nine Hundred Feb- June-
Anand,Mr. Tushar Anand Wazirpur And Mewka, Sector 92, Gurgaon, 122001, Seventy Six Only ) and Prospect No. 761551 is 2022 2022
(Prospect No 761550 & 761551) Haryana, India Rs.82,61,029.00 /- (Rupees Eighty Two Lakh Sixty One
Thousand Twenty Nine Only )
Mrs. Kiran Jha All that piece and parcel of: Southern Side half portion 1St Floor 856889 is Rs. 33,69,306.00/- (Rupees Thirty Three 29- 16-
Mr.Arun Kumar Jha area measuring 54.38 Sq. Mtrs.,(out of total 108.69 Sq. Mtrs.), Part Lakh Sixty Nine Thousand Three Hundred Six Only March- June-
(Prospect No 856889 & Of Prop No-4097 To 4099, Ward No-XIV Gali Barna Sadar Bazar , ) ans 929955 is Rs. 2,02,132/- (Rupees Two Lakh 2022 2022
929955) Delhi-6, 110006, Delhi,India Two Thousand One Hundred Thirty Two)
Mr. Arvind Kumar, All that piece and parcel of:Property No.170, Admeasuring 911098 is Rs.13,67,698/- (Rupees Thirteen Lakh Six ty 03- 16-
Mr.Anil Kumar, 43.15 Sq. Mts, Out Of Khasra No.642, Village Chandrawali Seven Thousand Six Hundred Ninety Eight Only ) and Mar- June-
Mrs.Neeraj,Mrs.Savitri Shahdara In The Abadi Of Ward No.5 Gajju Katra, Illaqa 928196 is Rs.1,16,734 /-(RupeesOne Lakh Sixteen 2022 2022
(Prospect No. 911098 & 928196) Shahdara, Delhi, 110032, India Thousand Seven Hundred Thirty Four Only)
Mr. Anoj Kumar Chaudhary All that piece and parcel of: Upper Ground Floor, Back Side+ Lhs, Rs. 23,77,402./- (Rupees Twenty Three Lakh Seventy 29- 16-
Mrs.Shobha Chaudhary without roof rights built on Plot No.-C-15, area admeasuring 55 Sq. Seven Thousand Four Hundred Two Only) for IL10032413 March- June-
(Prospect No. IL10032413 Yds., Upper Ground Floor, Back Side, Lhs Bhagwati Vihar, Block- and Rs. 5,16,371/- (Rupees Five Lakh Sixteen Thousand 2022 2022
& IL10076199) V Sector- C , Uttam Nagar, West Delhi, Delhi, India, 110059 Three Hundred Seventy One Only) for IL10076199
Mrs. Jyoti, All that piece and parcel of:Rz-654/6, area admeasuring 37.7 Sq. Mtrs., Rs.16,00,575.00/- 26- 16-

POSSESSION NOTICE
Mr.Kamal Verma, Entir e Ff, Without Roof Rights, Gali No 18-J, Out Of Khasra No 498, Village (Rupees Sixteen Lakh Five Hundred Mar- June-
(Prospect No. 935757) Nasir pur, Sadh Nagar, Palam Colony, West Delhi, 110045, Delhi, India Seventy Five Only) 2022 2022
Mr. Sandeep Kumar All that piece and parcel of: Flat No. 22, Ground Rs.16,33,429.00 (Rupees Sixteen 21- 16-
Mrs. Sangeeta Floor, measuring 33.29 sqm, Pocket-5, Block-B20, Lakh Thirty Three Thousand Four March- June- EDELWEISS ASSET RECONSTRUCTION COMPANY LTD.
(Prospect No IL10025354) Sector-35, Rohini , Delhi, India, 110085 Hundred Twenty Nine Only) 2022 2022 CIN: U67100MH2007PLC174759
Mr. Anup Singh, Mrs.Jyoti All that piece and parcel of: Unit No. 1201, Tower-1, Rs. 18,78,419.00/- (Rupees Eighteen 14- 15- Retail Central & Regd. Office: Edelweiss House, Off CST Road, Kalina, Mumbai 400098
M/S Dahiya PG and Guest House Carpet Area 578.27 Sq. Ft., Floor-12, Pyramid Lakh Seventy Eight Thousand Four Feb- June-
(Prospect No. IL10115868) Heights, Gurgaon Haryana 122001 Hundred Nineteen Only ) 2022 2022 Whereas, the Authorized Officer of the Secured Creditor mentioned herein, under the Securitisation and Reconstruction of Financial
For, further details please contact to Authorised Officer at Branch Office:IIFL House, India Infoline HousingFinance Ltd, Plot Assets and Enforcement of Security Interest (Act), 2002 and in exercise of powers conferred under Section 13(12) read with (Rule
No. 30/30E, Upper Ground Floor, Main Shivaji Marg, NajafgarhRoad, Beside Jaguar Showroom,Moti Nagar, New Delhi/ 3)of the Security Interest (Enforcement) Rules, 2002 issued a demand notice as mentioned below calling upon the borrower(s) to
or Corporate Office: IIFL Tower, / or Corporate Office: Plot No.98, Phase-IV, Udyog Vihar, Gurgaon, Haryana. repay the amount mentioned in the notice within 60 days from-the date of receipt of the said notice.
Place:Delhi, Date: 21-06-2022 Sd/- Authorised Officer, For IIFL Home Finance Ltd. Thereafter, Assignor mentioned herein, has assigned the financial assets to Edelweiss Asset Reconstruction Company Limited also
as its own/acting in its capacity as trustee of various trusts mentioned hereunder (hereinafter referred as “EARC”). Pursuant to the
assignment agreements, under Sec.5 of SARFAESI Act, 2002, EARC has stepped into the shoes of the Assignor and all the rights, title
Public Notice For E-Auction For Sale Of Immovable Properties and interests of Assignor with respect to the financial assets along with underlying security interests, guarantees, pledges have vested
Sale of Immovable property mortgaged to IIFL Home Finance Limited (Formerly known as India Infoline Housing Finance Ltd.) (IIFL-HFL) Corporate Office in EARC in respect of the financial assistance availed by the Borrower and EARC exercises all its rights as the secured creditor.
at Plot No.98,Udyog Vihar, Phase-IV,Gurgaon-122015.(Haryana) and Branch Office at:- Plot No. 30/30E, Upper Ground Floor, Main Shivaji Marg, The borrower having failed to repay the amount, notice is hereby given to the borrower and the public in general that the undersigned
Najafgarh Road, Beside Jaguar Showroom,Moti Nagar, New Delhi/Office No 1, First Floor, Mahaluxmi Metro Tower, Plot No. C -1,Sector - 4, being the Authorised Officer of Edelweiss Asset Reconstruction Company Limited has taken possession of the property
Vaishali, Ghaziabad, Uttar Pradesh - 201010. under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, described herein below in exercise of powers conferred on him under sub-section (4) of section 13 of Act read with rule 8 of the
2002(hereinafter "Act"). Whereas the Auhorized Officer ("AO") of IIFL-HFL had taken the possession of the following property/ies pursuant to the notice Security Interest Enforcement) Rules, 2002 on the date mentioned against each property.
issued U/S 13(2) of the Act in the following loan accounts/prospect nos. with a right to sell the same on ''AS IS WHERE IS BASIS & AS IS WHAT IS BASIS'' The borrower's attention is invited to provisions of sub-section (8) of section 13 of the Act, in respect of time available, to redeem the
for realization of IIFL-HFL's dues, The Sale will be done by the undersigned through e-auction platform provided at the website: www.bankeauctions.com
secured assets.The borrower in particular and the public in general is hereby cautioned not to deal with the property and any
Borrower(s) / Demand Notice Description of the Immovable Date of Physical
Co-Borrower(s) Date and Amount property/ Secured Asset Possession Reserve Price dealings with the property will be subject to the charge of the Edelweiss Asset Reconstruction Company Limited for the amount
/Guarantor(s) mentioned below and interest thereon.
13-Jan-2022 All that part and parcel of the prop- 11-Jun-2022 Rs.55,12,000/-
1.Mr. Vinod Rs.27,29,522/- (Rupees Twenty erty bearing Wz-6, Old Plot No.- Sl Name of Name Loan Account Borrower Name & Amount & Date of Date of Possession
(Rupees Fifty Five Lakh
2. Mr. Balraj Bhati Seven Lakh Twenty Nine Thousand 31, land area measuring 50 sq. Total Outstanding As On Date Twelve Thousand Only) No Assignor of Trust Number Co-Borrower(s) Name Demand Notice Possession Status
3.Mrs. Manisha Bhati Five Hundred Twenty Two Only) yds., part of Khasra No. Kh.No.- 14 - Jun - 2022 Dewan Mr.Karan Kumar(Borrower) Rs. 10,88,926.40/-(Rupees
Earnest Money Deposit (EMD)
4. M/s. Vinod Bid Increase Amount 32/14, situated in the area of vil- Rs.26,58,256/-(Rupees Twenty Rs.5,51,200/-(Rupees Five Lakh Housing “EARC 1025395 & Anju Arora (Co Borrower) Ten Lac Eighty Eight
(Prospect No Rs.40,000/-(Rupees Forty lage Khyala, Chand Nagar, Six Lakh Fifty Eight Thousand Fifty One Thousand Two 1 Finance TRUST [199- Thousand Nine Hundred 15.6.2022
Physical
944276) Thousand Only) Kanhiya Park, Delhi, 110018 Two Hundred Fifty Six Only) Hundred Only) BEARING TO REPAY THE Possession
25-Mar-2022 Symbolic possession Limited. SC-371 00041172] AMOUNT MENTIONED IN Twenty Six and Forty Paise)
1.Mr. Ramanuj All that part and parcel of the proper- Rs.22,97,600/-(Rupees Twenty
Rs.24,52,854/- (Rupees Twenty ty bearing Office No. - 1, Second 07-Jun-2022 (DHFL) THE NOTICE BEING 26 Oct, 2020
Pandey Two Lakh Ninety Seven
2.Mrs. Garima Pandey Four Lakh Fifty Two Thousand Floor, C-33, Sector - 15, having cov- Total Outstanding As On Date Thousand Six Hundred Only) DESCRIPTION OF THE PROPERTY: All that piece and parcel of House No. 2204/LIG, Ground floor, Housing board
Eight Hundred Fifty Four Only)
(Prospect No. ered 37.35 Sq. Mtr. (Approx), 10 - Jun - 2022 Rs.25,28,343/- Earnest Money Deposit (EMD) colony, Sector-55, Tehsil Ballabgarh, District Faridabad, Haryana admeasuring 15.97 SQ. MTRS.” Bounded as under:
Bid Increase Amount
875583& 933686 & Rs.25,000/-(Rupees (Rupees Twenty Five Lakh
Twenty Vasundhara Ghaziabad-201012, Twenty Eight Thousand Three Rs.2,29,760/-(Rupees Two Lakh Twenty Nine East: H. No. 2203/GF, West: H. No. 2205/GF, North: Gali , South: Road Owned vide Sale Deed dated 27/11/2014
932981) Five Thousand Only) Uttar Pradesh, India Hundred Forty Three Only) Thousand Seven Hundred Sixty Only) bearing Registration No.9779, registered in the office of Sub Registrar, Ballabgarh
Date of Inspection of property :20-Jul- EMD Last Date : 22-Jul-2022 till 5 Date/ Time of E-Auction :25-Jul-2022 HDB Mr. Jitendra Tyagi (Borrower) Rs. 77,25,779.76/-(Rupees
2022 1100 hrs -1400 hrs pm. 1100 hrs-1300 hrs.
Financial & Smt. Rakesh Tyagi and Mr. Seventy-Seven Lakh Twenty
Mode Of Payment :- All payment shall be made by demand draft in favour of "IIFL Home Finance Limited" payable at Gurugram or through “EARC Five Thousand Seven
RTGS/NEFT The accounts details are as follows: a) Name of the account:- IIFL Home Finance Ltd., b) Name of the Bank:- Standard Charted 2 Service TRUST 1293279 Naveen Tyagi (Co-Borrowers) Physical
Bank Ltd., c) Account No:-53105066294, d) IFSC Code:-SCBL0036025 or through Payment Link: https://quickpay.iiflfinance.com, Limited. BEARING TO REPAY THE Hundred Seventy Nine and 15.6.2022 Possession
SC-375
TERMS AND CONDITION (“HDB” / AMOUNT MENTIONED IN THE Seventy Six Paise only)
1. For participating in e-auction, Intending bidders required to register their details with the Service Provider https://www.bankeauctions.com, well in “Assignor”). NOTICE BEING 28 Sep, 2020
advance and has to create the login account, login ID and password. Intending bidders have to submit / send their "Tender FORM" along with the
payment details towards EMD, copy of the KYC and PAN card at the above mentioned Branch Office. DESCRIPTION OF THE PROPERTY: All Piece And Parcel Of The Built Up Property Bearing House No. K-80/14, Out Of Khasra
2. The bidders shall improve their offer in multiple of amount mentioned under the column "Bid Increase Amount". In case bid is placed in the last 5 No. 456, Measuring 100 Sq. Yds Consisting Whatsoever Thereon And With The Right To Constructed Upto Last Storey, Situated
minutes of the closing time of the auction, the closing time will automatically get extended for 5 minutes. At Village Gonda Gujran, Khadar, Gali No-20, Subhash Mohalla, West Ghonda, Illaqa Shahdara, Delhi-110053” Bounded as
3. The successful bidder should deposit 25% of the bid amount (after adjusting EMD) within 24 hours of the acceptance of bid price by the AO and the balance 75% under: On The East By: Road 15 Ft. Wide , On The West By: Other Property, On The North By: Other Property, On The
of the bid amount within 15 days from the date of confirmation of sale by the secured creditor. All deposit and payment shall be in the prescribed mode of payment. South By: Other Property.
4. The purchaser has to bear the cess, applicable stamp duty, fees, and any other statutory dues or other dues like municipal tax, electricity charges,
land and all other incidental costs, charges including all taxes and rates outgoings relating to the property. M/s Gulati Enterprises Rs.12,72,84,378/- (Rupees
5. Bidders are advised to go through the website https: //bankeauctions.com and https://www.iifl.com/home-loans/properties-for-auction for detailed IndusInd (Borrower), Mr. Anil Gulati, Twelve Crore Seventy-Two
terms and conditions of auction sale & auction application form before submitting their Bids for taking part in the e-auction sale proceedings. “EARC Narendra Nath Gulati, Mrs. Lakh Eighty-Four Thousand
6. For details, help procedure and online training on e-auction prospective bidders may contact the service provider E mail ID:- support@bankeauctions.com, 3 Bank Ltd. 65000 Physical
Support Helpline Numbers:@7291981124/25/26.and any property related query Mr. Sanjay Kumar @9643304680 Email:- kumarsanjay@iifl.com (IBL/ TRUST Aman Gulati, Mohinder Singh Three Hundred and Seventy- 16.6.2022
7261401 Possession
7. Notice is hereby given to above said borrowers to collect the household articles, which were lying in the secured asset at the time of taking Assignor)”). SC-353 , Har Charan Singh, Joginder Eight only) Seventy Nine and
physical possession within 7 days, otherwise IIFL-HFL shall not be responsible for any loss of property under the circumstances. Singh, Mrs. Gaeta Gulati & Seventy Six Paise only)
8. Further the notice is hereby given to the Borrower/s, that in case they fail to collect the above said articles same shall be sold in accordance with Law. 15 May, 2019
9. In case of default in payment at any stage by the successful bidder / auction purchaser within the above stipulated time, the sale will be cancelled Sushil Gulati (Guarantor/s)
and the amount already paid will be forfeited (including EMD) and the property will be again put to sale. DESCRIPTION OF THE PROPERTY: PROPERTY No.1: All That Piece and Parcel of Residential land situated, being and lying at khasra
10. AO reserves the rights to postpone/cancel or vary the terms and condition of tender/auction without assigning any reason thereof. In case of any no. 7747, Balupura Road, Adarsh Nagar, Thok Maliyan, Ajmer, Rajasthan. Measuring 219.72 sq. yards. Property No. 2 All that Piece and
dispute in tender/Auction, the decision of AO of IIFL-HFL will be final. Parcel of residential property situate being and lying at Plot No. 5, AMC No. 28/255 (old), 216/30 (new) Mayo Link Road, Ajmer, Rajasthan.
STATUTARY 30 DAYS SALE NOTICE UNDER RULE 8 (6) OF THE SARFAESI ACT, 2002 Measuring 402 sq. yards.
The Borrower are hereby notified to pay the sum as mentioned above along with upto dated interest and ancillary expenses before the date of
Tender/Auction, failing which the property will be auctioned/sold and balance dues if any will be recovered with interest and cost. Place: Delhi Sd/- Authorized Officer
Place:- Delhi , Date: 20-Jun-2022 Sd/- Authorised Officer, IIFL Home Finance Limited. Date: 17.06.2022 Edelweiss Asset Reconstruction Company Limited

 


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 14 MONEY MANAGER
>
NEW DELHI | MONDAY, 20 JUNE 2022

SMALL-TICKET PERSONAL LOANS: A SUMMARY

Small ticket, big

10,017
30,557

8,680
24,266

43,443

7,302
12,064

4,557
15,149

13,301
GUEST COLUMN
RAVI DUVVURU

Regulatory
business
The advent of fintech firms
Source: How India Lends FY 2021, CRIF High Mark

engagement:
FSR, December 2021, that the retail-led
offering contactless credit growth model itself is confront-
ing headwinds. First, delinquencies in

A sine qua non support has seen an the wider consumer finance portfolio
have risen. Second, the new-to-
credit segment — the key
A structured regulatory engagement with the
banking regulator is essential for policy
uptick in the disbursal of driver of consumer
credit growth in the
makers and the industry to meaningfully
formulate and transmit policy seamlessly.
instant loans, especially pre-pandemic
period — is show-
While the Reserve Bank of India (RBI)
interacts with industry bodies and market to millennials, reports ing a decline in
originations.
participants, the second Regulatory Review The report
Authority and its advisory group signalled a Raghu Mohan said an “analysis of
paradigm shift to strengthen collaboration. I historical data shows
am outlining some essential elements of that in emerging market

stakeholder engagement by regulators in key
markets, with whom I had interactions.
UNITED KINGDOM: Treasury and
regulators are subject to various obligations
intended to support stakeholder engagement
with the policy-making process, and to help
ensure it is rigorous, evidence-based and open
to external challenge. Regulators are required
to give an explanation of representations
received and how they have been assessed.
INDONESIA: For changes in regulations
with potential impact on banking operations
and strategy, the Financial Services Authority
of Indonesia (Otoritas Jasa Keuangan, or OJK)
seeks industry feedback. Draft policy is
formulated with closed group discussions
and working groups (WGs) with feedback
sought from stakeholders. Regulations issued
by Bank Indonesia (the banking regulator) —
considered as macro-prudential — are
normally issued with little or no consultation
with industry. However, regulations that
impact banking strategy and operations are
always issued after consultation with
industry focus groups.
+ cent year,” Kumar adds.
The RBI has a THAILAND: The
communication Bank of Thailand’s
policy, but it is (BoT’s) regular
time for an communication with
engagement the industry is done
strategy document through several
incorporating best approaches,
practices of other including meetings
central banks in with the Thai Bankers
key markets Association. “We
Finetune” meetings
are set up twice a year by BoT with senior
compliance officers of banks as well. And this is
followed by the issuance of consultation papers
for feedback on updates to regulation. If the
regulations under revision are complicated,
BoT constitutes a WG with members
nominated by industry associations.
SINGAPORE: The Monetary Authority of
Singapore (MAS) issues consultation papers for
comment when proposing changes to
regulations. And for more material regulations
— like Libor reform — it’s normal for the MAS
to set up and action a steering committee with
terms of reference with significant secretarial
and potential funding support. Project
milestones are fixed and a communication
strategy built, leading to various consultation
and information papers being published with
C
an credit be handed out
faster than Maggi noodles?
Last Thursday, CASHe
launched a WhatsApp-
enabled service for instant credit,
which V Raman Kumar — the fin-
tech’s founder and chairman —
claims is a first-of-its-kind, because
“today’s smart consumers demand
instant gratification and contactless
support”.
With so many “smart consumers”,
CASHe saw a 237 per cent annual
growth in the number of small loans
disbursed, to 430,000 in FY22, from
127,000 in FY21, with an average
ticket-size of about ~40,000.
A recent report by CRIF High Mark
(How India Lends: Credit Landscape
in India FY21) has it that small-ticket
personal loans (STPL, or those under
~100,000, which are a sub-set of the
personal-loan market) contributed 50
per cent by volume in FY21.
The report is the only granular
summation available in the public
domain, though the Reserve Bank of
India’s (RBI’s) Financial Stability
Report, December 2021 (FSR
December 2021), too, had observed
The landscape has shifted
dramatically in the last few
years. Instant loans against
credit-card limits have
seen an uptick
NAVIN CHANDANI
Managing Director & CEO,
CRIF High Mark
that retail loans are generally
recording double-digit growth,
“although the pace of growth
remains below its pre-Covid level.”
Housing and other personal loans
constituted 64 per cent of incremen-
tal credit during the last two financial
years. While state-run and private-
sector banks dominate the personal
loans segment, STPL is the turf of
non-banking financial companies
(NBFCs).
“The lending landscape has dra-
matically shifted in the last few years.
Personal loans and instant loans
against credit-card limits have seen
an uptick,” says Navin Chandani,
managing director and chief execu-
tive officer (CEO) at CRIF High Mark.
“Millennials have entered the loan
spectrum and are likely to have a
majority share in terms of borrowers.”
The drivers
Now, quick-gratification loans have
been around for years and gathered
pace in step with consumerism.
Marquee names like HDFC Bank,
ICICI Bank and Axis Bank do have
such offerings, but, given their unse-
The reason why small-ticket
personal loans are expensive
is that lenders have to factor
in higher delinquencies,
ranging from 7 to 12 per cent
V RAMAN KUMAR
Founder & Chairman,
CASHe
cured
nature, were
cautious and selective
when sanctioning them.
Fintechs and NBFCs were quicker
off the mark when hawking these
loans to new-to-credit or new-to-cat-
egory customers, riding on the back
of what they considered to be their
better ability to profile customers and
crunch credit-bureau data.
Bhavin Patel, co-founder and CEO
of LenDenClub, argues that fintechs
took the lead by introducing innova-
tive digital lending products like buy-
now-pay-later (BNPL), and pay-in-
parts offerings. “These products are
easy to avail of, as they are built on
robust artificial intelligence and
machine learning rails and provide
convenient payment mechanisms,”
he says. The company’s loans dis-
bursed grew more than 85 per cent in
number in FY22; the amount was up
by over 150 per cent.
But what is interesting is that
Innovative digital lending
products are easy to avail of,
as they are built on machine
learning rails and provide
convenient means of payment
BHAVIN PATEL
Co-founder & CEO,
LenDenClub
post-pandemic, there appears to
have been a change in the end-use
of such loans — they are being used
for medical emergencies, advances
on salaries, and towards paying rent-
als. And the evidence is not merely
anecdotal. This brings us to the issue
of delinquencies.
“Delinquency rates for small-
ticket size loans are on a par with var-
ious other secured loan products that
are available in the market,” says
Patel.
Kumar is upfront. He says delin-
quencies in unsecured STPL range
between 7 and 12 per cent and are a
concern — they peaked during the
first two Covid phases owing to the
slowdown and job losses. “And the
reason why these loans are expensive
is that lenders have to factor in higher
delinquencies.”
Better technology and underwrit-
ing smarts plus automated collection
strategies have helped CASHe to keep
these in the 8-9 per cent range. “We
expect this to stabilise around 7.5 per-
The pain points
The party seems to be winding down
as well. The CRIF High Mark report
says that overall personal loans recov-
ered, with originations in Q3FY21 and
Q4FY21 higher than the pre-pan-
demic level in Q4FY20, but STPLs
remained adversely impacted in FY21
due to the pandemic. The portfolio-
at-risk (PAR) for personal loans (in the
31-180 days-past-due period) was 3.3
per cent in FY21; for STPL, it was
higher, at 8.8 per cent.
Another trend is the 40 per cent
reduction in the average ticket size
of personal loans to ~150,000 in FY21,
from ~240,000 in FY17. This data for
STPL is not available, but it indicates
broadly that people are borrowing
smaller amounts that may not nec-
essarily be used for conspicuous con-
sumption, but to ease the grind
of everyday life. If true, this is an omi-
nous sign.
These aspects need to be read along
with another observation in the RBI’s
economies, non-perform-
ing assets typically peak six
to eight quarters after the
onset of a severe recession.”
Whether we are in a recession
is arguable, but we are definitely not
in a sweet spot by any stretch of the
imagination — the FSR, December 2021
is indirectly saying that the retail book
of Mint Road-regulated entities may
be carrying pain spots.
P2P platforms
Yet another point has not got the
attention it deserves. RBI data show
that while lending on peer-to-peer
(P2P) platforms makes for a minus-
cule share (~2,093 crore as on
September 30, 2021) of aggregate
NBFC credit, there was significant
traction in activity during the pan-
demic period — the ~2,093 figure rep-
resents a three-fold growth in the
credit intermediated. (P2P is akin to
another form of crowd-funding.)
And the fact that customers
thought of P2P platforms as a better
avenue to source credit tends to hide
the reality that investors also
searched for higher yields in a low
interest-rate environment. And,
therefore, the bigger plot from hereon
will be worth watching.
The last three years have seen an
abundance of liquidity, with the RBI
accommodative in its monetary pol-
icy. All that has changed, and we are
well into a switchover in the interest-
rate cycle. In itself, this should not be
a concern, but do remember that
from 2019, Mint Road’s regulation is
that all consumer loans (that is, loans
given out since) should be pegged to
external benchmarks — the repo rate
or Treasury Bill yields.
Simply put, a sharper transmis-
sion of the hike in policy rates to bor-
rowers is on the cards. And unlike
during the pandemic, no loan-servic-
ing breather is on offer. And, we have
no data on delinquencies, or even on
the restructuring sought by cus-
tomers by retail segment.
It is also pertinent to keep in mind
that the retail book undergoes a
churn every three or four years, given
the shorter tenure of such loans (save
for mortgages, which are of much
longer tenures and are linked to
appreciating assets).
In the specific case of loans dis-
bursed for instant gratification, also
unsecured in nature, how they will
turn out is anybody’s guess.

‘Concerted steps needed to curb fake digital apps’

MAS views. I was co-chair of a committee and a
member of another committee set up by MAS
on Anti-Money Laundering Regulations and
the discussions were transparent and open.
MALAYSIA: At the onset of the pandemic,
the Central Bank of Malaysia (Bank Negara
Malaysia, or BNM) actively engaged with the
banking industry leadership to implement
policy matters. Important policy guidelines
like the licensing policy for ‘Digital Bank’ are
placed for public consultation. Additionally,
BNM at times reaches out to specific banks to
seek inputs on potential changes that they
intend to implement.
THE PHILIPPINES: The Central Bank
(Bangko Sentral ng Pilipinas, or BSP) consults
with regulated entities through the Bankers
Association of Philippines and/or the
Association of Bank Compliance Officers.
Depending on the criticality of the proposed
policy, they hold dialogues with industry
representatives. Most recently, they have
begun publishing the drafts on their website.
The principles of engagement from the
markets listed above revolve around
consultation being the key for policy
formulation. Incorporating feedback from
industry and industry associations; taking into
account public feedback through consultation
papers on websites; structured meetings with
bank chief executives and compliance heads to
assess regulatory and supervisory changes are
at the core of engagement strategy.
While the RBI has a well laid out
communication policy, it is time for an
engagement strategy document
incorporating best practices of other central
banks in key markets.
The writer is the Founder and Designated Partner
of Duvvuru & Reddy LLP Regulatory Advisory
Services. He was also a member of the Advisory
Group to the second Regulatory Review Authority
set up by the RBI
Fake apps have emerged as a significant threat in the digital lending ecosystem, with the From the RBI, regulated entities, Google to
potential to shake public confidence in the channel, at a time when digital payments have enforcement agencies — every stakeholder is
concerned about the wavering trust in digital
taken off in a big way in the effort to foster financial inclusion. SUGANDH SAXENA, chief executive
lending apps. All agree that the issue has to be
officer of the Fintech Association for Consumer Empowerment (FACE) — an industry association dealt with on a continuous basis rather than
that recently applied to the Reserve Bank of India to become a self-regulatory organisation — with sporadic interventions. As part of the
spoke with Raghu Mohan on the concerns over fake apps. Edited excerpts: RBI’s WG’s report, there are concrete
suggestions to arrest the issue of fake apps and
How do you look at the phenomenon of fake nebulous and unpredictable. They are fast, ensure sustained growth of the industry,
digital apps? elusive and they change their identity very often, including the role of the self-regulatory
Digital lending apps started around 2015-2016, making tracking, crackdowns and swift action organisation (SRO). The report is already
when many fintech startups started extremely tricky. giving us a blueprint, and in line with that,
leveraging our excellent public infrastructure FACE is working to take the responsibility of
on e-KYC and payments and progressive The Reserve Bank of India (RBI) working the SRO.
public policy framework for financial group’s (WG’s) report on digital lending gave We already have a code of conduct for
inclusion. These apps and fintechs became the impression that digital fraud is largely lenders and we are working on other standards
even more significant during the from unregulated entities, but proposed in the WG’s report. I believe the
pandemic, as they enabled millions of this is not the same as saying it solution to these problems lies in creating a
consumers and small businesses in only emanates from them. How tech-innovation-regulation trifecta. On
need of digital financial services and do you react? another level, regulators and law enforcement
convenient credit to deal with the Absolutely. All apps, including legal need to work towards putting up higher
blow to their livelihoods. SUGANDH ones with sophisticated cyber benchmarks on loan apps, such as withholding
Unfortunately, success is also SAXENA security protocols, are prone to fraud the Certificate of Registration, which serves as
attracting fake lending apps, CEO, Fintech and cyber threats, as they are digital a strong deterrent for errant players.
crowding popular mobile application Association for entities, as we have seen in cases like
marketplaces, misleading consumers Consumer the Dhani data breach. Look at what Can you throw light on your partnership further scrutiny on the application. The
and taking advantage of their need for Empowerment happened to government agencies in with Equifax to launch the Luminate collaboration is still in its very early days, and
money. They misguide on the interest Costa Rica last week. Running an app Exchange? we are still working with a few partners to see
rates and all-too-easy processes that get and being prone to digital fraud is Luminate Exchange is a special project that we how it works.
customers attracted to, or rather, fall prey to. understandable, and action can be taken to launched along with our FACE member-
Once a user starts engaging with the apps, the eliminate the attacker, strengthen cybersecurity companies to tackle identity fraud. It’s a risk What’s the difference between FACE and the
harassment starts — charging high processing measures and mitigate the damage to customers. management exchange that enables fintech Digital Lenders Association of India?
fees and then disappearing, or changing their However, we need to differentiate illegal lenders to mitigate identity fraud at its origin, Both of us are industry associations of fintech
app name and identity, or doubling up the lending apps and treat them very differently, as in real time, using the power of common big players, working towards a similar goal.
loan amount. they are essentially built with the sole purpose of data, giving them greater confidence while However, FACE differentiates itself by focusing
In the process, they extract personal data fraud, harassing customers and extorting processing loan applications. It’s still at a very on digital lending in the regulated space only,
such as contacts, addresses, and phone gallery, money, which becomes a different ball-game. We nascent stage, but we are looking to scale fast and using the customer well-being lens in all our
which they eventually misuse against borrowers should not club the two issues. with this solution. work. In that sense, FACE is rather unique, where
and their contacts. The reason why it has been so As of now, lenders tag them using their own lenders have come together to form an
difficult for enforcement agencies to get hold of What’s the sense you have got from protocol based on the information they have. association to prioritise customer-centricity and
these apps is that their modus operandi is very stakeholders and regulators on this issue? Lenders use this information to undertake the SRO framework.

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 .
NEW DELHI | MONDAY, 20 JUNE 2022
Plastic straws cause
FMCGs indigestion
Juice and beverage
giants struggle to meet
the impending ban on
single-use plastics
SURAJEET DAS GUPTA
New Delhi, 19 June
T
he industry may account for just
0.05 per cent of the total volume of
single-use plastics in the country.
And the product it uses is just one among
the 22 — including spoons, forks, plates,
knives and trays — that will be banned
across the country from July 1 by govern-
ment order.
Yet, it is the plastic straw that is at the
centre of public focus as fast-moving con-
sumer goods (FMCG) companies make a
last-ditch effort to get the government to
extend the deadline.
Specifically, it’s the plastic straws used
in small tetra packs between 75 ml and
250 ml for juices, beverages, milk and
even chaas. That’s because the companies
that are impacted most are the big ones
— such as Amul, Parle Agro, Dabur
and PepsiCo.
With a collective turnover of ~6,000
crore, these companies have more heft in
relation to their contribution to the use of
single-use plastic. Together, they con-
sume about six billion straws every year.
Their problem is that these straws have to
be replaced by expensive paper straws
that India does not produce at present.
But with a serious supply shortage of
paper straws around the world, at least
one leading player, Parle Agro, makers of
the hot-selling Frooti and Appy, says that
the industry might have to close factory
operations if the deadline is not extended.
“India has high demand, but none of the
suppliers in China and Southeast Asia
have the capacity to supply us immedi-
ately. They will take three months and the
problem of containers not reaching will
continue. If paper straw arrivals are
delayed the plants may stop working,”
said Schauna Chauhan, Parle Agro man-
aging director.
The public outcry against the plastic
straws ban is a global trend. Even in the
US, plastic straws account for 0.025 per
cent of the plastics that settle on ocean
beds each year. But Lonely Whale, a
+ seven-year-old activist group that cam-
paigns against plastics entering the ocean,
has clarified that the plastic straw is not
the sole focus of its activism. It wants to
make people aware of “how single-use
plastics are prevalent in our lives, putting
up a mirror to hold us accountable”.
Banning plastic straws is a simple way of
building awareness among consumers on
plastic waste and pollution and also the
fact that it is a matter of choice and not
necessity, since you don’t really need a
straw to drink juice.
In India, too, plastic straws have all the
ingredients for an awareness campaign —
big companies, both global and local, and
a large middle-class consumer base
that consumes these products, many of
which are targeted at younger peoples and
STATSGURU
Employment conundrum
SACHIN P MAMPATTA
The government’s
recently released
Periodic Labour Force
Survey (PLFS) 2020-2021
annual report paints an
optimistic picture
of employment despite
pandemic-related uncertainties.
The survey was conducted between
July 2020 and June 2021, which
included the worst of the second wave.
Unemployment showed a declining
trend despite Covid-19, according to
the report. Overall unemployment was
down from 6.1 per cent in 2017-18 to 4.2
per cent in 2020-21. The 2017-18 annual
report was the first one for the PLFS.
Female unemployment fell from 5.7
per cent to 3.5 per cent during the
same period (chart 1).
StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines
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MANY A SIP
n In August 2021, the government
bans 22 single-use plastic products
with effect from July 1, 2022
n Big FMCG companies say they
have a problem replacing plastic
straws on small tetra pack
products because of a global
supply shortage
n In April 2022, the industry creates
the Action Alliance for Recycling
Beverage Cartons to lobby
the government for an
18-month extension
n Plastic straws take up to 200 years
to decompose, and they break into
smaller plastics and can be
ingested in marine life
n Paper straws decompose within
two to six weeks
even children. Banning plastic forks or
plates manufactured by the small-scale
sector does not create an equivalent
degree of hype.
But why are FMCG companies, which
were well aware of the government’s insis-
tence on this ban, so unprepared and fail-
ing to place sufficient import orders? And
why are they looking at the last moment?
The industry has been divided. Many
multinationals, sensing that a programme
under Prime Minister Narendra Modi’s
leadership would not get extension,
decided to place orders for paper straw
imports many months ago. So, they have
no problem with the transition.
The Ministry of Environment, Forest
and Climate Change notified the ban in
August 2021 under the Plastic Waste
Management Amendment Rules, giving
all companies sufficient time for action.
But it was only in April 2022 that the
Action Alliance for Recycling Beverage
Cartons (AARC) decided to petition the
government that there is no alternative to
integrated plastic straws. They argued that
there are problems when paper straws
touch a cold surface (they become soggy)
and asked for a 12-18-month extension to
find viable alternatives.
The labour force participation rate,
or the proportion of the population
which is either working or looking for
work, also showed a rising trend,
ending at 41.6 per cent in the latest
report. The share of government
employment, which includes local
bodies and public sector enterprises,
fell compared with 2017-18. The share
of public and private limited
companies was up (chart 2).
However, the share of people with
a regular wage or salary dropped to
the lowest of the four surveys so far,
to 21.1 per cent (chart 3). Regular
wage and salaried employees have
seen an erosion of other benefits over
the years with the majority now
lacking access to any social security
benefit at all (chart 4).
The dependency ratio is the
number of economically dependent
But in May, AARC changed its stance
and told the government that it would
replace plastic straws with paper but
would still require an extension of 18
months. It chalked out a three-pronged
strategy — import straws, import
machines to make straws in India, and try
out compostable plastics for straws that
don’t have harmful effects. But the gov-
ernment did not respond.
“Many companies thought that just as
the food standards authority grants exten-
sions on various issues, the same thing
would happen this time. But it did not.
Considering there are 22 other products,
it would have been suicidal to grant just
one product extension in a market in
which big players operate,” said an indus-
try source aware of the developments. He
said FMCG players also tried to get the
Amul cooperative to convince the govern-
ment for an extension.
Meanwhile, a debate has arisen on
whether paper straws are really environ-
ment-friendly. Experts agree that it is a
better option than plastic, but point out
that many paper straws in the market are
not compostable or recyclable. They also
require cutting trees to produce, and paper
products generate more greenhouse gases
than plastic because they consume four
times more energy to manufacture.
Yet, the stark reality is that plastic
straws take up to 200 years to decompose,
and they break into smaller plastics
and can be ingested in marine life. In con-
trast, paper straws decompose within two
to six weeks.
But it might be a while before paper
straws come to India — manufacturers
worldwide will be able to deliver only 50
per cent of global paper straw demand,
which is rising as more and more coun-
tries and cities go for a ban. The CEO of
AARC, Praveen Aggarwal, estimates that
only 25 per cent of the country’s demand
will be met by this year’s end. And for
those importing machines to make in
India, it is a one-year wait. But there is
some good news. An Indian packaging
company is planning to set up a unit in
the country that will be able to meet the
demand of paper straws by the peak sea-
son. But until then, the only hope is if the
government chooses to heed the last-
minute lobbying by FMCG players.
persons who are too young or old to
work, per 100 persons who are of
working age. India had a peak
dependency ratio of over 81.5 in
1966, according to data available
with the World Bank. This had
dropped to 47.5 in 2017-18. The
latest survey puts it at 44.3 (chart 5).
A higher share of workers can
help bring economic prosperity as
has happened in countries such as
China, which used its surplus
labour to fuel a manufacturing
boom. But the share of
manufacturing jobs in India has
been falling despite the
demographic tailwind from
12.9 per cent in 2017-18 to
10.9 per cent in 2020-21 (chart 6).
The share of agriculture went up
from 44.1 per cent to 46.5 per cent
during the same period.
TAKE TWO 15 <
The story behind the choice
of RBL Bank CEO
Does this smack of the regulator’s lack of confidence in the bank’s board?
cent of it is low-cost current and savings Indian Bank and retired as MD and CEO
accounts. Its advance portfolio rose just 2 of Indian Overseas Bank. The 62-year-old
per cent but overall, there is nothing scary seasoned banker definitely has the experi-
in the balance sheet of the bank. ence to tackle RBL Bank’s issues.
Then why did the stock slump? One What about Daruwala? Is she cul-
reason could be that in his immediate past turally misfit because of her foreign bank
assignment, Subramaniakumar was over- background? She cut her teeth in banking
seeing the liquidation of debt-laden with ICICI Ltd, the development finance
Dewan Housing Finance Corp Ltd as the institution which later got merged with
administrator. The investors probably felt ICICI Bank, after a stint with eminent
here he is coming with a similar mandate chartered accountant and longest serv-
BANKER’S TRUST — liquidation. That’s not true. ing director on the RBI board Y H
Subramaniakumar’s Linkedin profile Malegam before joining.
TAMAL BANDYOPADHYAY describes him as a “turnaround special- At ICICI Bank, she was exposed both
ist”, “financial inclusion advisor and con- to corporate banking as well as rural bank-
On June 19, 2018, the day ICICI Bank Ltd’s sultant”, “banking technology specialist”. ing. In fact, she had started the rural and
CEO and managing director Chanda It also talks about his expertise in IT man- agribusiness at the bank. After joining
Kochhar went on leave and Sandeep agement, compliance, governance and Standard Chartered Bank in 2016, she
Bakhshi took over as its chief operating audit, among others. turned around its retail business.
officer, the bank’s stock rose 4 per cent. RBL Bank is a story of phenomenal The search committee consisted of
Three and a half months later, in October, growth. Since 2010, its loan book has two members of the nomination
when Kochhar resigned and Bakhshi grown from around ~1,100 crore to cross and remuneration committee of the
moved into the corner room, the stock ~60,000 crore, and
jumped 5.8 per cent. deposit portfolio from
Many years back in late 2007, IndusInd ~1,600 crore to over
Bank Ltd stock more than doubled when ~79,000 crore. The cap-
market sensed that Romesh Sobti, then ital, too, has grown
executive vice president – country execu- manifold even as cor-
tive, India, and head, UAE and subconti- porate loans worth
nent, at ABN Amro Bank NV, would take around ~2,000 crore
over as the boss of the private bank. Sobti have turned sour.
took over the reins in February 2008. It has been on the
Fast forward to 13 June 2022. The RBL RBI radar since FY20
Bank Ltd stock tanked 22.45 per cent to for its over-depen-
close at ~87.9, its lifetime low, after the dence on bulk deposits
bank had announced over the weekend for liabilities and unse-
that the Reserve Bank of India (RBI) cured loans for assets.
cleared the appointment of R The unsecured credit
Subramaniakumar as its CEO and MD. card business of its
Rajeev Ahuja was running the show loan portfolio was
after Vishwavir Ahuja went on a six- around 20 per cent,
month leave (coinciding with the end of the highest in the
his tenure) in late December, protesting industry. The bank Traditionally, the regulator RBL Bank board,
the appointment of an additional director has been going slow doesn’t get into qualitative another board
by the banking regulator and, of course, on asset growth, aspects of the candidates and member and an out-
the RBI’s refusal to extend his tenure. focussing on risk- approval of the first name on sider — Pradip Shah,
Like the chief of another old private management and the list, recommended by the the first MD of rating
bank, Ahuja, too, had got a one-year underwriting norms search committee, is automatic agency CRISIL Ltd and
term, which was to end in June. While as well as granular unless the person is not found founder of IndAsia
the other banker got another three-year retail deposits and fit and proper Fund Advisors. It was
term after completion of one year, Ahuja paring its exposure to assisted by Egon
didn’t have the luck. Had he got a three- the unsecured microfinance loans. It has Zehnder, a global management consult-
year term, he would have completed 15 also been investing in building systems, ing and executive search firm.
years at the helm, the maximum permis- processes and the technology platform. I am sure the RBI had looked into cul-
sible by the regulator. While RBL Bank is not collapsing, the ture, competence, compatibility and com-
Why did the stock tank? Prima facie, surprise has been the choice of the CEO. pensation while choosing the CEO of RBL
RBL Bank is not a stretcher case. Unlike I am not qualified to assess the relative Bank. Since Daruwala’s current package
Yes Bank Ltd, it’s not a victim of fraud. It’s merit of the two candidates shortlisted is quite handsome, the search committee
a story of limitless ambition for growth. by the search committee of the bank’s must have recommended liberal ESOPs
Indeed, RBL Bank is the only entity, which board, but it’s a rare occasion when the for her. Had this gone against Daruwala?
posted a loss in FY22 (~74.74 crore) — in a RBI picked up the second person from But ESOPs are earned. One needs to per-
year when the industry recorded its high- the list submitted to it for the top job and form to make money through ESOPs. Or,
est ever net profit — but its financials are not the first. has her recent extension of term at
not to be frowned on. Traditionally, the regulator doesn’t get Standard Chartered Bank blocked her pas-
The bank’s gross non-performing into qualitative aspects of the candidates sage to RBL Bank?
assets (NPAs) in FY22 rose marginally and approval of the first name is auto- While I am not qualified to pass any
from 4.34 per cent to 4.4 per cent. matic unless the person is not found fit judgement on the RBI’s choice, one thing
However, after provision, net NPAs and proper. In this case, this cannot be is for sure: It smacks of the regulator’s lack
dropped from 2.12 per cent to 1.34 per the reason as the first person on the list of confidence in the bank’s board. Or, is
cent. Its provision coverage ratio in March — Zarin Daruwala, cluster chief executive there something else we aren’t aware of?
was 70.4 per cent and capital adequacy officer, India and South Asia markets
ratio 16.8 per cent; the liquidity coverage (Bangladesh, Nepal and Sri Lanka) of The writer, a consulting editor with Business
ratio was also far higher than the regu- Standard Chartered Bank — got a new Standard, is an author and senior adviser to
latory requirement. three-year term from April. Jana Small Finance Bank Ltd
Despite the flight of a few bulk deposits Subramaniakumar started his banking His latest book: Pandemonium: The Great
in December, when an RBI-appointed career with Punjab National Bank in 1980. Indian Banking Story
director joined its board and Ahuja went He headed business transformation at the To read his previous columns, please log on to
on leave, its deposit portfolio in FY22 rose large public sector bank for three years https://bankerstrust.in
8 per cent to cross ~79,000 crore; 35.3 per before becoming an executive director at Twitter: TamalBandyo
1: LOWER UNEMPLOYMENT RATE
n Male unemployment rate | Overall unemployment rate
2: PUBLIC/PRIVATE LIMITED COMPANIES HAVE GAINED
EMPLOYMENT SHARE
| Female unemployment rate (in %) n Proprietary and partnership n Govt/ local body/ public sector enterprises
n Autonomous bodies n Public/ private limited company n Cooperative
6.2 6.1 6.0 5.8
5.7 societies n Trust/ other non-profit institutions n Employer’s households
5.2 5.1 n Others (in %)
4.8 4.5
4.2 4.2 0.3 0.4 0.9 1.9
3.5
2017-18 68.2 12.6 9.2 6.4
0.3 0.4 0.9 2.0 2.7
2020-21 71.4 12.3 9.9
2017-18 2018-19 2019-20 2020-21 0 20 40 60 80 100
Note: Data is for persons in both rural and urban areas Note: Shows percentage distribution of those working in both rural and urban areas
3: FEWER PEOPLE HAVE A REGULAR WAGE/SALARY 4: MAJORITY OF REGULAR WAGE/SALARIED
n All self-employed n Regular wage/salary n Casual labour (share in %) EMPLOYEES LACK SOCIAL SECURITY
Regular wage/salaried employees not eligible for any social
security benefit (in %)
2017-18 52.2 22.8 24.9
2017-18 49.6
2018-19 52.1 23.8 24.1
2019-20 53.5 22.9 23.6
2018-19 51.9
54.2
2019-20
2020-21 55.6 21.1 23.3
2020-21 53.8
0 20 40 60 80 100
Note: Data is for persons in both rural and urban areas Note: Data is for persons across India
5: DROP IN SHARE OF ECONOMICALLY 6: DROP IN MANUFACTURING EMPLOYMENT (share in %)
DEPENDENT POPULATION n Agriculture n Mining and quarrying n Manufacturing n Electricity, water, etc. n Construction
n 2017-18 n 2020-21
(dependency ratio) n Trade, hotel and restaurant n Transport, storage and communications n Other services
50.2 0.4 0.6
47.0 47.5 2017-18 44.1
44.3 12.1 11.7 12.0 5.9 13.2
41.4
38.3 0.4 0.6
2018-19 42.5 12.1 12.1 12.6 5.9 13.8
0.3 0.6
2019-20 45.6 11.2 11.6 13.2 5.6 11.9
0.3 0.6
2020-21 46.5 10.9 12.1 12.2 5.4 12.0
Rural Urban Overall
0 20 40 60 80 100
Note: Dependency ratio is persons of age 0 to 14 years or 65 years and
above per 100 persons of age 15 to 64 years Note: Data is for persons in both rural and urban areas
Source: Periodic Labour Force Survey (PLFS) Annual Report (2020-21)
 16
>
Toy makers gain from
dip in Chinese imports
Sales rise for domestic players after govt last year banned sale of toys
that are not certified by Bureau of Indian Standards
SHINE JACOB
Chennai, 19 June
T
he dip in import of toys from
China, thanks to changed rules
imposed by the government last
year, has come as a boon for domestic
manufacturers.
According to industry sources,
domestic toy manufacturers are seeing
a sharp rise in sales during the current
financial year. On January 1, 2021, India
had banned the sale of toys that are not
certified by the Bureau of Indian
Standards (BIS). This meant that all fac-
tories churning out toys to be sold in
India had to be certified by the bureau
along with mandatory product testing,
including for units abroad.
This has led to a 30 per cent decline
in India’s toy imports — from $562.14
million in 2019-20 to $392.92 million in
2021-22. The rise in basic customs duties
on imported toys from 20 to 60 per cent
has also led to the decline in imports.
Toy company Funskool India,
which is majority owned by tyre-maker
MRF, said that its sales have doubled
this April (peak season) compared to
the last financial year. “We have seen
the sales double, while all the domestic
players are seeing a rise in sales as
imports used to contribute around 80
per cent of the total market requirement
earlier,” said R Jeswant, chief executive
officer of the Chennai-based Funskool.
According to data from the Ministry
of Commerce and Industry, Chinese
products comprised 71 per cent of the
overall imported toys in 2020-21. This
figure came down to 62 per cent during
2021-22, and in the month of April 2022
it stood at 61 per cent.
Owing to the rise in demand,
Funskool is set to expand its capacity
in three factories — two in Ranipet,
Tamil Nadu, and one in Goa. At Ranipet
itself, the company plans to add a
70,000 square feet facility to its existing
manufacturing location.
So far, the BIS has granted about
800 toy manufacturing licences, over
90 per cent of which are to micro, small
and medium enterprises (MSMEs).
India is one of the fastest growing
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X
PLAY
ZONE
n Decline in India’s toy imports
by 30%, from $562.14 mn in
2019-20 to $392.92 mn in 2021-22
n Rise in basic customs duties
from 20% to 60% has also led
to the import decline
n Because of new regulations,
imports from China fell 39%
from $402.27 mn in 2019-20 to
$246.74 mn in 2021-22
markets for toys, which is expanding
at a compound annual growth rate of
around 13 per cent as against a global
average of around 5 per cent. “Prior to
Covid-19, the size of the industry in
India was around $1.5 billion. Now, with
imports down, that share is being taken
over by domestic players replacing
China. Their sales have increased man-
ifold and more start-ups and SMEs are
coming to the sector,” said Ajay
Aggarwal, president of the Toy
Association of India (TAI).
Because of the regulations, imports
from China dipped by 39 per cent, from
$402.27 million in 2019-20 to $246.74
million in 2021-22.
Jeswant added that as a result of the
new regulations, more international
brands are looking to either manufac-
ture in India or to outsource. Funskool
has also witnessed a rise in exports of
products from its stable such as Giggles,
Fundough and Handycrafts. The com-
FUNSKOOL
n Chinese products made up
71% of overall imported toys in
2020-21; it came down to 62%
in 2021-22 and 61% in April 2022
n BIS has granted about 800
manufacturing licences, of
which over 90% are to MSMEs
n Indian toy market growing
at CAGR of 13% against
global average of 5%
pany reportedly supplies to interna-
tional toy majors such as Hasbro, Spin
Master, Early Learning Centre, Flair and
Drumond Park Games.
The MSME industry, on the other
hand, is of the opinion that rules should
be further fine-tuned to accommodate
micro entrepreneurs. More than 90 per
cent of the 6,000-odd toy manufactur-
ers in India are MSMEs, according to
the TAI.
“The BIS has made a lab compulsory
for all units. Based on our request, a
one-year exemption was given for this
to micro players. We would like to seek
an extension of two more years,”
Aggarwal said.
To attract more MSMEs to the sec-
tor, the BIS had lined up a 50 per cent
discount on the minimum marking fee,
which the bureau charges on each prod-
uct for inspection and certification, in
addition to a 10 per cent rebate for old
licence holders.
NEW DELHI | MONDAY, 20 JUNE 2022 1
British Indian
Twins that changed how author pens
we discern space giants new Famous
Five series
NASA/JPL-CALTECH, NASA/JPL-CALTECH PHOTOJOURNAL
DEVANGSHU DATTA PRESS TRUST OF INDIA
New Delhi, 19 June London, 19 June
The two manmade objects most distant from Earth are An Indian-born author based
slowly powering down. By 2025 or perhaps a little later, in London, who grew up read-
the Voyager twins will be completely bereft of power. ing Enid Blyton stories, has
However, both the spacecraft will keep travelling, head- penned her own set of adven-
ing further and further out of the Solar System. tures for the Famous Five
The Voyager saga showcases incredible engineer- characters created by the cel-
ing. Neither spacecraft was expected to be functional ebrated English children's
for more than five years but it’s 44 years and counting. writer, more reflective of mod-
They have sent back huge amounts of data, and breath- ern British life.
taking images, which revolutionised our understand- Sufiya Ahmed, originally
ing of gas giants, ice giants, dwarf planets, weird rings from Surat, recently released
and moons. the second in a four-book
The mission idea sparked in 1965. A young aero- series commissioned by the
space engineer at Caltech, Gary Flandro made an inter- publishers behind Blyton
esting calculation. The outer planets — Jupiter, Saturn, bestsellers and has been
Uranus and Neptune — would be lined up in what buoyed by the enduring pop-
was almost a straight line in the late 1970s and early ularity of the characters.
’80s. The planets travel in roughly egg-shaped (ellipti-
cal) orbits around the sun. But they have different velo-
While injecting some Sou-
th Asian flavour into “Five and
cities and of course, they are at varying distances. This the Runaway Dog”, Ahmed
phenomenon, where these specific planets are in a feels her new adventures are
roughly straight line, occurs only every 176 years or so. Voyager 1 carries a gold-plated disc (seen in the an ode to the much-loved
Flandro realised there could be an interesting payoff picture taken on August 4, 1977) with multilingual writings of the 20th century
for exploration. If you launched a spacecraft towards content including songs and images children’s author. “These new
Jupiter, and timed and aimed perfectly, it would benefit adventures of the Famous Five
from a slingshot effect. The gravitational pull of Jupiter Uranus’ name leads to crude jokes). Neptune is anoth- are more reflective of modern
would add to its speed, and push it out faster towards er ice-giant — deeper-blue. It also has a lot of moons times,” said Ahmed.
Saturn. Similarly, Saturn would offer a gravitational and rings, and pink geysers. After the Neptune fly- “There are more diverse
assist to speed the craft on to Uranus and Uranus would by, Voyager 2 turned off its camera to conserve power characters in Kirrin village,
speed it on to Neptune. A 30-year journey to reach and headed “down”. which is the setting of the
Neptune could be cut to less than 12 years by boosts. The last images came in from Voyager 1 from a dis- Famous Five books, and in the
This led to the Voyager Missions. Voyager 1 and 2 tance of 6 billion km, showing Venus, Earth, Mars, second story I’ve written, ‘Five
were launched within 15 days of each other in August- Jupiter, Saturn, Uranus and Neptune in array. After and the Runaway Dog’, we
September 1977. (Voyager 1 launched after Voyager 2 that both craft have sent radio data but no visual have Simi — a girl of South
but was named V1 because it would reach Jupiter first). images. In 2012, Voyager 1 left the Solar System, and Asian heritage — and her fam-
They would reach Jupiter in March 1979 and July 1979, Voyager 2 left the Solar System in 2018. Since then, ily who have moved into the
and Saturn in November 1980. After that, Voyager 1 they’ve been studying phenomena like cosmic rays, village,” she said.
would travel “up” out of the Solar System while Voyager magnetic fields, interstellar and solar winds (charged The first book, “Timmy
2 would fly by Uranus (January 86) and Neptune (Aug- particles flowing from stars are called wind). and the Treasure”, was relea-
ust 1989) and then go “down”. “Up” and “down” is with Both craft work off plutonium reactors and the fuel sed in January and has been
reference to the solar system’s orientation. The planets will eventually run out. Both connect via radio to making waves not just in the
orbit in a plane called the ecliptic. Voyager 1 headed NASA’s Deep Space network. They are now around UK but also in Spain and Por-
above the ecliptic, while Voyager 2 headed down. 20-21 light-hours away, which means radio commu- tugal. The third book in the
Both craft kept coming up with surprises. They nication takes twice as long. As the mission has pro- series, “Message in a Bottle”,
discovered multiple new moons of all the planets, gressed, instruments have been progressively shut is undergoing the finishing
they found volcanic activity on moons, and they found down to conserve power. touches with illustrations and
that Jupiter, Uranus and Neptune also had rings. They The on-board computers were state-of-the-art with proofreading, and Ahmed is
found Saturn’s moon Titan had a thick atmosphere 69 kilobytes of memory, approximately one-millionth already working on book four.
and Jupiter’s Great Red Spot was a monstrous per- the capacity of a high-end smartphone. The data is All four books should be avail-
petual storm. They also discovered huge magnetic collected on tape recorders and sent back by a 23-watt able by May 2023, including
activity around Jupiter. transmitter — think of a refrigerator light. They have in India. “Enid Blyton is
Voyager 2 found the ice-giant Uranus was full of 3.5-metre dish antennas to amplify signals. Voyager 1 Hachette Children’s Group’s
surprises. The coldest planet has a unique blue-green seems a little confused as to where it is at the moment, top-selling author in India, so
colour. It has at least 11 moons (six new ones), it has which has led optimists to hope it’s been hacked. It it’s very exciting to be part of
rings; it has a weird magnetic field and it spins on its does carry a gold-plated disc with multilingual conte- that. I’m hoping to be invited
side. (My minority view is that Uranus is the most nt including songs and images. Who knows, someday, to the Indian book festivals
beautiful planet in the Solar System but most folks sometime, that might intrigue an intelligent alien if it with my Famous Five adven-
think Saturn wins the beauty contest and of course, does meet one and gets hacked. tures,” said Ahmed.