WEDNESDAY, 8 MARCH 2023

14 pages in 1 section www.business-standard.com

NEW DELHI
~12.00
VOLUME XXIX NUMBER 239

WORLD P8 WORLD P8

CONFLICT WITH AMERICA INEVITABLE WE MAY NEED TO RAISE RATES

UNLESS IT ‘HITS THE BRAKES’: CHINA HIGHER AND FASTER: POWELL
P U BLISH ED SIM ULT ANEOUS LY FROM AHM E DA B A D, B E N G A L U RU , B HU B A N E S WA R, C HA N D I G AR H , CH E NNAI , H Y D E R AB AD , K O CH I , K O L K AT A, L UCK NO W , M UM B A I ( AL SO PR I NT E D I N B H O PA L ), N E W DE L HI AN D P UN E

DIVIDEND PLAY
10 STOCKS THAT CAN Step up investment just FMCG firms stock up
HELP BEAT SHARE ahead of summer
PRICE VOLATILITY like govt: PM to India Inc SHARLEEN D’SOUZA
Mumbai, 7 March
DEMAND SURGES IN FEB
FMCG sales value growth (in %)
‘Govt paving way for collective ownership in Budget implementation’ Demand for fast-moving consumer goods Feb ’23 vs Jan ’23 Feb ’23 vs Feb ’22
(FMCGs) went up last month across India, as
(MoM) (YoY)
NIKESH SINGH kirana stores stocked up their shelves in
New Delhi, 7 March
What PM said anticipation of a sizzling summer, according Overall 28.6
to data by retail intelligence firm Bizom.
Overall 10.1

P
rime Minister Narendra Modi “PLATFORMS DEVELOPED BY There was a spike in beverages sales across Urban 14.9 Urban 5.5
on Tuesday urged India Inc to the country despite inflation inching up in
take advantage of the
INDIA ARE BECOMING MODELS February after moderating downward pre-
Rural 35.4 Rural 12.4
announcements made in the Budget FOR THE WORLD…RuPay viously, Bizom noted.
2023-24 and step up its investment AND UPI ARE…OUR IDENTITY “The number of kiranas stocking FMCG CATEGORY-WISE SALES
Equity markets have been volatile over the on the back of the Centre’s capital IN THE WORLD” products was at an eight-month high and
past year. At such times, investors can look at expenditure (capex) push. stocking rose by over a fifth as they looked to VALUE GROWTH
firms that pay generous dividends, which can Addressing a post-Budget webi- capitalise on summer demand across product nFeb’23 vs Jan ’23
become a second income, KRISHNA KANT nar, the prime minister pointed out “TRUST AND EXPECTATIONS categories,” Akshay D’Souza, chief of growth nFeb ’23 vs Feb ’22
HAVE REPLACED QUESTION

84.6
& RAM PRASAD SAHU report 13 > that his government had raised the and insight at Bizom, told Business Standard.
capex outlay for FY24 by 33 per cent MARKS IN EVERY DISCUSSION “Out-of-home consumption has contrib-
to a record ~10 trillion. “I would call OF INDIAN ECONOMY” uted significantly to boosting sales across cat-
GOVT WILL LAUNCH upon the private sector of the coun- egories. This has been a welcome change from

25.2
25.0
try to increase its investment just the conservative purchases in the post-festival
INDIA AI BY EARLY

40.6
“TAX REFORMS HAVE REDUCED

19.1
like the government, so that the season period,” he added.

10.4
27.7

11.3
THE BURDEN ON TAXPAYERS AND

8.6
country gets maximum benefit from On a month-on-month (MoM) basis, bev-
APRIL, SAYS MoS IT

India will soon have its own artificial
intelligence (AI) programme. This
programme will work with fintech and other
ecosystems to catapult the next generation
of entrepreneurial journey. “We are
launching by the end of March or early April
the ‘India AI program’, which will be one of
the largest publicly available datasets in the
world with recently announced three
centres of excellence as announced in the
Budget," said Rajeev Chandrasekhar,
Minister of State for Electronics and IT. 14 >
INT’L WOMEN’S DAY TODAY
Female employment gap
affects CFA gender mix
The share of women who complete
the three-level chartered financial
analyst (CFA) exam, regarded the gold
standard in investment management
globally, is just 13 per cent in India. It is 20
per cent globally.
Inadequate savings could
jeopardise retirement plan P12
Women in informal sector
aspire more: Study P7
COMPANIES P2
Torrent moves SC against
NCLAT’s order on RCap
The Torrent Group, a bidder for bankrupt
Reliance Capital (RCap), has moved the
Supreme Court against the National
Company Law Appellate Tribunal’s order to
hold a second round of auction for RCap
assets. The apex court is expected to start
hearing the matter from next week.
The lenders’ to RCap have decided to hold
the second round of e-auction on March 20.
NO EDITION
There will be no edition of the
newspaper on Thursday (March 9)
as the offices of Business Standard
will remain closed on account
of Holi. The e-paper of the
newspaper can be accessed at
epaper.business-standard.com.
it,” he said.
Modi said there was a time when
the world looked at India with sus-
picion, and that discussions on
India’s economy, Budget, and goals
would often begin and end with a
question. With India now guided by
“financial discipline, transparency
and inclusive approach”, the ques-
tion mark has been replaced by
“vishwas (trust) and apeksha (expec-
tations),” he added.
He said the responsibility of
those in the financial world had
increased with India moving with
new capabilities. “They have a
robust financial system of the world
and a banking system that is in
profit after being on the verge of col-
lapse 8-10 years ago,” he said.
Giving an example of the govern-
12 >
Suraksha’s takeover of
Jaypee gets NCLT nod
DEV CHATTERJEE
Mumbai, 7 March
A two-member principal Bench of the National
Company Law Tribunal (NCLT) on Tuesday
finally cleared the acquisition of Jaypee
Infratech by Mumbai-based realtor Suraksha
Group, raising hopes of more than 20,000
homebuyers waiting for over a decade to get the
keys to their apartments.
The company was sent for debt resolution by
lenders in August 2017 after it defaulted on its
~23,000-crore debt.
Suraksha Realty had made the winning bid of
~7,736 crore against government-owned NBCC
(India)’s ~6,536 crore offer in June 2021.
Suraksha Realty is owned by Sudhir Valia, a
Mumbai-based realtor. Valia, brother-in-law of
Sun Pharmaceutical Industries (Sun Pharma)
Chairman Dilip Shanghvi, also helped set up Sun
Pharma and owns a stake in the company.
Suraksha’s offer was cleared by a committee
of creditors (CoC) and submitted to NCLT for
clearance, but was delayed due to objections by
several parties.
Jaypee Infratech, which owns the Delhi-Agra
Expressway and land on both sides of the express-
way, was referred to the NCLT under the bank-
ruptcy code and was among the first cases sent for
debt resolution under the Code. Turn to Page 3 >
RESULTED IN BETTER COLLECTION”
ment’s support to the micro, small
and medium enterprises (MSMEs),
the prime minister asked the banking
system to reach out to the maximum
number of sectors. “12 million
MSMEs have received huge help
from the government during the pan-
demic. In this year’s Budget, the
MSME sector has also got additional
collateral-free guaranteed credit of
~2 trillion. Now it is very important
that our banks reach out to them and
provide them adequate finance,” he
said at the webinar, the 10th in a 12-
part series seeking ideas and sugges-
tions for implementing the Budget.
Modi said RuPay and the Unified
Payments Interface (UPI) were not
ROAD TO
RESOLUTION
n Aug 2017: Lenders send Jaypee
Infra to NCLT for debt resolution
n Mar 2020: NCLT clears NBCC
India’s plan with modifications;
NBCC moves NCLAT
n Apr 2020: SC transfers all cases
to itself
n Mar 2021: SC orders CoC to
complete entire process in 45 days
n Jun 2021: CoC clears Suraksha
ARC’s bid of ~7,736 cr, sends the
offer for NCLT nod
just a low-cost and highly secure
technology, but also our identity in
the world. “UPI should become a
means of financial inclusion and
empowerment for the whole world;
we have to collectively work for it.
Our financial institutions should also
have maximum partnership with fin-
techs to increase their reach.” He said
that in the era of ‘Industry 4.0’, plat-
forms developed by India were
becoming models for the world.
The prime minister said applica-
tions were continuously pouring in
to avail of the production-linked
incentive (PLI) scheme, which
“makes India an important part of the
global supply chain”. Turn to Page 3 >
7.0
6.7
4.3
erages sales shot up 84.6 per cent in
February and 4.3 per cent compared to last
year. Personal care products saw a growth of Beverages Packaged Personal
40.6 per cent in February compared to January foods care
and 10.4 per cent compared to February 2022. Commodity Home care Confectionery
Turn to Page 3 > Source: Bizom
ADANI PRE-PAYS ~7.3K CR OF SHARE-BACKED LOANS
The Adani group on Tuesday said it had companies, it said, adding that together
repaid share-based financing of ~7,374 with repayments done earlier, the group
crore (over $900 million) and would had prepaid $2.016 billion of share-
prepay all such remaining loans by the backed financing. In September last year,
end of the month, as it looked to allay CreditSights, a Fitch Group unit, said the
concerns over leverage and debt to group was “deeply overleveraged”. 2 >
win over investors. The
repayment would release GQG FOUNDER TO MEET
pledge on shares of P2
AUSTRALIAN INVESTORS
promoters in four group

Meta plans to lay off thousands

this week after firing 11K in Nov
Imminent round of cuts driven by financial targets, slowdown in ad revenue
SARAH FRIER, ED LUDLOW reported in February, a move
DATE COMPANY NO. OF LAYOFFS & KURT WAGNER that is still being finalised and
MAJOR Jan 20, ’23 Google 12,000 7 March could affect thousands of
staffers. Shares of Meta gained
TECH Nov 9 , ’22
Nov 16 , ’22
Meta
Amazon
11,000
10,000
Meta Platforms, the owner of 1.7 per cent during premarket
Facebook and Instagram, is trading in New York on Tuesday.
LAYOFFS Jan 18, ’23 Microsoft 10,000 planning a fresh round of layoffs The stock has risen 54 per cent
and will cut thousands of since the start of the year as of
Feb 24 , ’23 Ericsson 8,500
employees as soon as this week, Monday’s close.
Jan 4, ’23 Salesforce 8,000 according to people familiar The imminent round of cuts
Jan 4, ’23 Amazon 8,000 with the matter. is being driven by financial
The world’s largest social targets and is separate from the
Feb 6, ’23 Dell 6,650 networking company is “flattening,” said the people,
Jan 30, ’23 Philips 6,000 eliminating more jobs, on top of who asked not to be identified.
Jul 30, ’20 Booking.com 4,375 a 13 per cent reduction in Meta, which has seen a
November, in a bid to become a slowdown in advertising
Sources: layoffs.ai, companies
more efficient organisation. In revenue and has shifted focus to
its earlier round of cuts, Meta a virtual-reality platform called
Those working on the lay-off slashed 11,000 workers in what the metaverse, has been asking
plan are hoping to have it ready was its first-ever major layoff. directors and vice presidents to
before Meta Chief The company has also been make lists of employees that can
Executive Officer Mark working to flatten its be let go, the people said.
Zuckerberg (pictured) organisation, giving buyout A Meta spokesperson
goes on parental leave packages to managers and declined to comment
for his third child cutting whole teams it deems on the plans.
nonessential, Bloomberg News BLOOMBERG Turn to Page 3 >
2 COMPANIES
>
NEW DELHI | WEDNESDAY, 8 MARCH 2023

DoT may exempt small 5G transceivers from clearance

Move to allow installation of low-capacity 5G cells on street furniture
SUBHAYAN CHAKRABORTY
New Delhi, 7 March
To allow faster 5G rollout and ensure
better coverage in urban areas, the
Department of Telecom is expected to
exempt the installation of low-capacity
5G transceivers from the existing clear-
ance process, officials said.
This would effectively allow low
power base transceiver stations (LPBTS)
with effective radiation power of less
than 600 Watt to be installed on street
furniture such as electric poles, bus
stops and traffic lights by telecom serv-
ice providers (TSPs), the officials told
Business Standard.
A BTS is a fixed radio transceiver in
any mobile network, most often
installed on mobile towers. Being able
small cell equipment for densifying
networks and covering signal gaps in
to install small equipment for 5G serv- central clearances, it had said. Small cell tech urban areas, which will see much higher
ices on street furniture has been a key Due to its lower level of radiation, Rolling out high-frequency 5G usage.
demand of TSPs, which could accelerate small cells need less stringent security spectrum bands such as 5G in These cells usually have a short range
their 5G network expansion plans. and installation practices, so it is easy urban areas face challenges as but can boost geographical coverage due
In November last to install and operate. compared to 2G, 3G, and 4G to their higher numbers.
year, the Telecom Small cells will also networks. The higher the Industry insiders have said up to 200
Regulatory Authority Due to its lower level of be used for traffic frequency band, the lower such cells may need to be deployed in
of India (Trai) had radiation, small cells offloading since the the distance to which it can 1 sqkm area of major cities.
batted for the particu- need less stringent security carrying capacity of propagate, as signals in After the change in rules, TSPs
lar category of LPBTS and installation practices, lower frequencies, these bands cannot travel will not need to go through the
or small cells in its offi- so they are easy to install used by macro radio through buildings or clearance process — still the norm
cial recommendations and operate sites, are limited, Trai obstacles. for mobile tower installations, offi-
on adopting street fur- had said. Therefore, the cials said.
niture for small cell and aerial fibre Officials said the widespread adop- macro cells for 5G net- The DoT had brought out amend-
deployment. tion of street furniture for 5G is backed works need to be com- ments to the existing Right of Way Rules
Such equipment, or small cells, by data collected from pilot studies ini- plemented with extensive as close as 100 in August 2022. However, Trai had rec-
should only require permission from the tiated by Trai last year at Bhopal Smart deployment of small cells so as metres from each ommended to amend the rules further
agency owning the street furniture such City, GMR International Airport in New to support all kinds of uses and other, down from 3 km to bring clarity on the term street furni-
as power company, or city government Delhi, Deendayal Port in Kandla, and applications, at all locations. earlier. ture and also to include provision of
or traffic police department and not any Namma Metro Bengaluru. As a result, cells need to be installed This has resulted in TSPs relying on bulk processing of applications.

upGrad subsidiary Adani repays share-backed Torrent goes

‘Campus’ lays off
30% workforce financing worth ~7,374 cr to SC against
ARYAMAN GUPTA
New Delhi, 7 March
Screwvala-backed edtech
firm rebranded it to ‘upGrad
Group promises to pay back all such remaining loans by March-end RCap auction
A funding slowdown has
Campus’. Following the
acquisition, Impartus co- PRESS TRUST OF INDIA
Appellate tribunal had ordered
forced Edtech unicorn founder Amit Mahensaria New Delhi, 7 March holding 2nd round of auction
upGrad to lay off 30 per cent took over as chief executive

E
of the workforce — nearly 120 of Campus. mbattled Adani Group on Tuesday DEV CHATTERJEE
employees — at its subsidiary Arjun Mohan, upGrad’s said it has repaid share-based Mumbai, 7 March
‘Campus’, which has a former CEO, had also stepped financing of ~7,374 crore (over $900
strength of about 300 people. down last month after a million) and will prepay all such remaining The Torrent Group, a bidder
This is the second upGrad three-year stint at the firm. loans by the end of the month, as it looks of bankrupt firm Reliance
subsidiary to have laid off The firm’s biggest expense to allay concerns over leverage and debt to Capital (RCap), has moved
employees recently. Last in FY22 was on advertising win over investors. the Supreme Court against
December, Harappa and promotions, at ~393 The repayment will release pledge on the National Company Law
Education, which upGrad crore. The amount is almost shares of promoters in four group com- Appellate Tribunal’s
had acquired for ~300 crore twice the ~205 crore spent in panies, it said in a statement, adding that (NCLAT’s) order to hold a sec-
in July 2022, had let go of 70 FY21, shows data accessed by together with repayments done earlier, the ond round of auction for
people, or about 30 per cent business intelligence plat- group has prepaid $2.016 billion of share- RCap assets.
of its staff. form Tofler. backed financing. The apex court is expected
Queries sent by Business Further, upGrad’s consoli- In September last year, CreditSights, a to start hearing the matter
Standard to upGrad did not dated net loss widened Fitch Group unit, said the group was from next week.
elicit an immediate response. almost three-fold to ~627 “deeply overleveraged” as it used debt to The lenders’ of RCap have 30 minutes.
After acquiring Impartus,
a video-learning solutions
provider, for ~150 crore in a
crore in FY22 from ~211.1 crore
in FY21. This came even as
the unicorn’s revenue grew
expand an empire centred on ports and
coal mining to include airports, data cen-
tres and cement as well as green energy.
CRISIL reaffirms ratings for decided to hold the second
round of e-auction, following
the NCLAT order, on March
The administrator, based
on instructions from the
committee of creditors, will
cash-and-stock deal back in
May 2021, the Ronnie
111 per cent, from ~328 crore
in FY21 to ~692 crore in FY22.
In a January 24 report, US short seller
Hindenburg Research flagged "substantial"
debt levels at the group while alleging
solar, wind power units 20.
Torrent was the highest
bidder with a ~8,640-crore
announce the closure of each
round, with a 30-minute gap
between two rounds.
accounting fraud and use of offshore shell ABHIJIT LELE recent raising of funds from US global offer for RCap in the first auc- The bidders will have to
companies to inflate stock prices. Mumbai, 7 March equity boutique GQG Partners through tion held in December 2022. submit their financial pro-
IN BRIEF The group has denied all Hindenburg alle-
gations, calling them "malicious", "baseless" CRISIL reaffirmed the ratings for Adani
equity stake sale. On March 2, Adani
Group said GQG Partners invested in
It said that inviting bids again
would be against the spirit of
posal.
Lenders have said all pay-
and a "calculated attack on India". A month Group’s renewable energy (RE) projects Adani Ports and Special Economic an auction. Its rival, the ments to creditors (excluding
Dr Reddy’s Lab recalls over 4K after the damning report by Hindenburg
lopped off USD 135 billion in market value
soon after GQG Partners invested $1.9
billion in some companies in the
Zone, Adani Green Energy, Adani
Transmission, and Adani Enterprises.
Hinduja Group, has offered
~9,000 crore to the lenders.
any equity offered to them)
would form part of the net
bottles of generic drug in US from Adani group's listed companies, the
conglomerate is hoping to claw back the
bailiwick. Among the RE projects, the
solar enterprises are in Andhra Pradesh,
In addition, over the past one
month, various Adani Group
Torrent had earlier moved
the National Company Law
present value (NPV) through
upfront cash or deferred pay-
Dr Reddy's Laboratories is recalling over narrative by choosing slow and steady Karnataka, and Rajasthan, and wind companies received debt disburse- Tribunal (NCLT) in January ments.
4,000 bottles of a generic drug in the US growth over the breakneck, mostly debt- power units are in Madhya Pradesh. ments / rollovers amounting to over this year against the second If there are multiple finan-
due to a packaging error. The fuelled, expansion spree of recent years. The rating action factors in ~5,000 crore in accordance with their auction. There, its plea was cial proposals from any bid-
Hyderabad-based drug major is It has already scrapped a Rs 7,000 crore satisfactory operating performance by earlier agreed loan sanctions. There upheld. The lenders then der in any round, the one
recalling 4,320 bottles of Tacrolimus coal plant purchase, decided not to bid for a the asset, backed by a strong was huge volatility in shares of listed appealed to the NCLAT, with the highest NPV will be
Capsules which are used to prevent the stake in state-backed energy trading firm counterparty risk profile, adequate Adani companies after US-based short- which ruled in their favour. considered.
body from rejecting a transplanted PTC, reined in expenses, repaid some debt liquidity, and low debt, the rating seller Hindenburg’s research report Under the new rules, a Reliance Capital was sent
organ. New Jersey-based Dr Reddy's and promised to repay more. agency said in a statement. alleging irregularities in the group was bidder is given 30 minutes to for debt resolution in
Laboratories, a unit of the company, is recalling the affected lot "In continuation of promoters' commit- Further, it has taken note of the made public on January 24. bid in each round, which will November 2021 after the
due to “Presence of one Tacrolimus 1 mg capsule co-mingled in a ment to reduce the overall promoter lever- close if all participating bid- company defaulted on loans
bottle containing and labeled as Tacrolimus 0.5 mg capsules,” age backed by Adani listed company ders submit their bids before worth ~24,000 crore.
USFDA said in its latest Enforcement Report. PTI shares, we would like to inform that we
have prepaid share backed financing of Rs
GQG founder Jain to meet Australian
9 of 10 firms lack structure to
7,374 crore ahead of its latest maturity in
April 2025," the statement said. investors after $1.9-bn investment Pearls Group scam: CBI arrests
As much as 31 million shares, or 4 per Investment firm GQG Partners Inc founder Rajiv Jain will meet clients and investors in
unlock digital tech: Study cent stake, of promoters in the group's flag-
ship firm Adani Enterprises Ltd will be
Australia this week and will explain its investment into embattled Indian
conglomerate Adani Group, among other things, the company said on Tuesday.
accused after his deportation
A mere 7 per cent of companies have the right combination of released from pledge while in Adani Ports GQG Partners bought shares worth $1.87 billion in four Adani group companies, The CBI has arrested Harchand Singh Gill, director of a Pearls Group
culture and operating structure to spur growth from digital & Special Economic Zone (APSEZ), promot- marking the first major investment in Adani since a short-seller's critical report in company, who was deported from Fiji in connection with a
technologies, according to a new research from the Infosys ers will release pledges on 155 million January sparked a stock rout. ~60,000 crore ponzi scam allegedly orchestrated by the parent
Knowledge Institute. The report — based on a survey of 2,700 shares or an 11.8 per cent stake. The report by US-based Hindenburg Research alleged stock manipulation and firm, officials said on Tuesday. A team of CBI officials had gone to
business executives across the US, UK, France, Germany, Australia, In the case of Adani Transmission Ltd, improper use of tax havens by Adani, and flagged concerns over its debt levels. Adani Suva in Fiji to bring Gill after being deported from the archipelago
New Zealand, China, and India — found that companies that make pledges over 36 million shares, representing has rejected the allegations and denied any wrongdoing. under 'Operation Trishul' and was placed under arrest after
decisions based on high quality, transparent data and build a 4.5 per cent of promoters' holding, will be The stake purchase has raised queries from an Australian pension fund client of landing in New Delhi, they said. The operation was launched by
culture of responsible risk-taking are more likely to deliver released. Similarly, in Adani Green Energy, GQG, at a time when major investors, including Norway's sovereign wealth fund, the CBI to bring back fugitives living abroad and around 30
profitable growth in tough macro-economic conditions. PTI pledges over 11 million shares or 1.2 per cent were selling Adani shares. PTI fugitives were successfully brought to India under the operation
of promoters' holding, will be released. since its launch last year. PTI

20-min pizza promise by Domino’s gets stuck in traffic, kitchen

PEERZADA ABRAR
Bengaluru, 7 March
As promised, Domino’s 20-minute delivery
started across 170 stores in Bengaluru on
Tuesday. But, as the day progressed, some
teething issues came to the fore. If delivery
partners’ accounts are anything to go by, these
are unlikely to go away anytime soon.
To test out the service in Bengaluru, a
customer downloaded the Domino’s Pizza
application (app) and placed an order for a
double cheese margherita. The order got
accepted at 2.51 pm as soon as the payment was
done and the dashboard of the app showed a 20-
minute delivery guarantee. However, for 28
minutes, the pizza was still in the process of
getting baked. It got despatched and took
another 26 minutes to be delivered.
One of the delivery riders said there was
pressure to deliver the orders within 20 minutes,
but sometimes there are challenges that they
need to rise above, such as traffic gridlock, finding
the correct address, and running out of fuel.
Domino’s said it has made efforts that have
resulted in a more efficient overall delivery
process without compromising on the quality of
food or the safety of its delivery riders. The firm
said it had a proven track record of delivery
prowess, having pioneered the 30-minute
delivery and established itself as a market leader
in the quick service restaurant sector.
The company has now set a new benchmark
of 20 minutes by enhancing in-store process
improvements, upgrading technology (tech),
including rider tracking and route optimisation,
and expanding its store network.
Jubilant FoodWorks, the operator of
Domino’s Pizza, has unveiled an ambitious plan
to launch 20-minute-delivery services in metro
cities across India — Mumbai, Delhi, Kolkata,
Chennai, and Hyderabad — in the next 12
months. Jubilant launched the plan in
Bengaluru on Monday.
The firm has been working for the past three
years to set a new benchmark. “Every year, we
shave off four/five seconds in the pizza-making
process without changing the procedure,” said 12-18 months. This is part of the plan to set open
Sameer Khetarpal, chief executive officer (CEO) 3,000 Domino’s stores globally.
and managing director, Jubilant FoodWorks, in In India, Jubilant is playing in a market
an interview, adding, “For example, if it takes which is worth $45 billion.
five seconds to put the pizza in a box, can we do it Khetarpal said that the company also has
in just four seconds. If it takes 15 seconds to cut a plans to tap into tier II and III locations, based on
pizza, can we do it in 12.” the growth of disposable incomes.
Khetarpal said the company is For instance, it is setting up stores
also committed to ensuring the Domino’s said it in places like Raipur, Tumkur, and
safety and well-being of its delivery has made efforts Coimbatore.
personnel by providing them with that have Domino’s is not the only firm
the necessary training and sensiti- resulted in a betting big on quick commerce.
sation. “By using analytics, insights, more efficient Apps such as Blinkit, Swiggy
and tech, we can give our customers overall delivery Instamart, Zepto and others are
hotter, fresher, and tastier pizzas process without already competing to deliver
than ever before,” said Khetarpal. compromising essential groceries in 10 minutes to
Jubilant holds the exclusive mas- on the quality of half an hour. Swiggy recently said
ter franchise rights from Domino’s food or the couples across India are using
Pizza, Inc. to develop and operate the safety of its Instamart to purchase and deliver
Domino’s Pizza brand in India, Sri delivery riders gifts to their loved ones. Instamart
Lanka, Bangladesh, and Nepal. In itself, which sold over 250,000 red
India, it has a strong and extensive network of roses last Valentine’s Day, has been boosting the
1,760 Domino’s restaurants across 387 cities. procurement of red roses. It sold over 1 million
In Sri Lanka and Bangladesh, the company roses this year’s Valentine week.
operates through its 100 per cent-owned Launched in August 2020, Instamart is now
subsidiary, which currently has 47 and 13 present in over 25 cities. It uses Swiggy’s tech
restaurants, respectively. It also operates and dedicated delivery fleet to bring groceries
Dunkin’ restaurants in India and Popeyes in and other daily essentials to the doorstep of
India, Bangladesh, Nepal, and Bhutan. Indians within minutes. The aim is to deliver
The company plans to invest ~900 crore and groceries in 10-15 minutes through a network of
open 250 stores for Domino’s in India in the next seller-owned dark stores.

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NEW DELHI | WEDNESDAY, 8 MARCH 2023 COMPANIES 3 <

A BRIMMING AFFAIR JPMorgan sees another busy

year for dealmakers in India
PREETI SINGH & BAIJU KALESH Maheshwari said in an inter- on private enterprise, includ-
7 March view. “You can go to Australia ing on its biggest tech firms,
and Japan which are both stunted the economy over
Dealmakers in India should competitive in terms of cap- the past years.
expect another strong year for ital. That’s why more Smaller transac-
mergers and acquisitions as capital will continue tions will drive deal
geopolitical tensions could to flow into India flow in India this
propel companies to diversify which is the big- year with the
into the South Asian nation, gest market for majority being in
according to JPMorgan Chase some global spon- the range of $500
& Co. sors.” million to $2 bil-
India sealed its busiest India — and its lion, Maheshwari
M&A year ever with about fast-growing econ- said. Health care,
$191 billion worth of transac- omy — has energy & infras-
tions in 2022, bucking a global emerged as a big India sealed its tructure, specialty
slump in deal activity, accord- bet for global busiest M&A manufacturing
ing to data compiled by financial firms, year ever with and technology
Bloomberg. While it’s unlikely even though about $191 bn are expected to be
for the country to repeat such recent troubles at worth of fairly active, he
a high mark this year, there billionaire transactions in added.
will be decent deal flow to Gautam Adani’s 2022, bucking a “Corporate
keep the bankers busy, said business empire global slump in clarity, financial
Softbank Chief Executive Officer (CEO) Masayoshi Son at the wedding reception of Oyo founder deal activity
Nitin Maheshwari, have dented the sponsors and
Ritesh Aggarwal and his wife Geetansha Sood in New Delhi on Tuesday. (Right) Paytm CEO Vijay
JPMorgan’s head of M&A for allure. At the same switch from pub-
Shekhar Sharma takes a selfie with a host of business leaders and heads of start-ups, including
India. time, China is struggling to lic to private track will likely
Flipkart CEO Kalyan Krishnamurthy, FirstCry CEO Supam Maheshwari, Lenskart CEO Peyush
“China has been a bit dif- attract capital after the be the three key drivers for
Bansal, Zeta CEO Bhavin Turakhia, and OfBusiness founders Ruchi Kalra and Ashish
ficult to deploy so where can nation’s protracted Covid M&A this year,” he said.
Mohapatra, at the event PICTURE: TWITTER
these managers go?” Zero policy and a crackdown BLOOMBERG

Non-metros snapping up electric scooters

54% of Ather
Energy’s sales
come from Tier-II
and Tier-III cities
SURAJEET DAS GUPTA
New Delhi, 7 March
If you thought electric scooters have
caught the fancy of only people in
the metros, think again. According
to data from electric two-wheeler
maker, Ather Energy, 54 per
cent of its sales of scooters, starting
from ~1.2 lakh, come from Tier 2 and
Tier 3 cities.
Based on sales per lakh popula-
tion, the top five cities for the com-
pany are Calicut, followed by Kochi,
Kolaphur, Trivandrum and Pune.
The big metros are conspicuous by
their absence in this list. Tier 2 cities
STRONGER
FOOTHOLD
account for 30 per cent of Ather
Energy’s sales and 24 per cent
comes from Tier 3 cities.
The other myth about electric
two-wheelers is that customers
prefer to opt for basic models at
prices below ~1 lakh. Ather’s sales
data shows that the company’s pro-
duct split is skewed heavily towards
n Ather n Top five cities based scooters starting from ~1.3 lakh, we
would have been concerned if their
Energy’s top on sales per 100,000
model, priced population are mostly market was only in the metros. But
our sales patterns clearly show that
at ~1.5 lakh,
dominates
smaller, non-metro
cities
there is a large market in Tier 2 and
Tier 3 cities where customers are
sales ready to pay a premium for a quality
n Easy product.”
financing Phokela says that this trend is
has helped also because of the easy availability
consumers of financing for buying electric
in small scooters. As much as 40 per cent to
cities buy 45 per cent of the company’s
electric vehicles are sold through this route.
scooters “Also, we are seeing a clear pre-
miumisation of the electric scooter
its most expensive model, 450X, market. That is why our top model
which accounts for 84 per cent of its sells more than the entry model,”
sales and is priced around ~1.5 lakh. adds Phokela. The average
Only 16 per cent of its total sales cost of an internal combustion
comes from 450 Plus, which is engine (ICE) scooter is ~75,000 to
priced at ~1.3 lakh. ~80,000, while electric ones are over
Ravneet S Phokela, chief busi- ~1 lakh.
ness officer at Ather Energy, Phokela says that this premium-
explains, “As we are selling electric isation has similarities with the pas-
senger car market, where the entry-
level market (under ~5 lakh) has
been slowing down, while the mid-
market has been growing.
This is why most of the key
players in the EV two-wheeler sec-
tor, such as Ola, TVS, Bajaj, and Hero
Motocorp, are focusing on the pre-
mium segment. And Phokela
believes that the market for electric
scooters under ~1 lakh will continue
to shrink.
Ather’s electric scooters are cur-
rently available in about 78 cities.
The company wants to expand to
200 cities, which account for 75 per
cent of scooter sales. It will soon
launch a new product, but does not
plan to get into the sub ~1 lakh mar-
ket.
Phokela feels that the govern-
ment’s FAME 2 subsidy for electric
scooters should continue for another
two to three years since the support
will help stabilise the market.

N FROM PAGE 1 N

Step up investment just like

govt: PM to India Inc
He further said India was
being described as “a bright
spot of the global economy”
and the country had attracted
the highest foreign direct
investment in 2021-22 with a
major part going into the
manufacturing sector.
He said the introduction of
goods and services tax (GST)
and the lowering of income
and corporate taxes had
reduced the burden of tax-
payers and resulted in better
tax collection.
“Paying tax is such a duty,
which is directly related to
nation building. The increase
in the tax base is proof that
people have faith in the gov-
ernment, and they believe
that the tax paid is being spent
for public good,” the prime
minister said.
The prime minister said
‘Vocal for Local’ was a
national responsibility. “We
have to see which are the areas
where we can save the coun-
try's money by building
capacity in India itself,” he
said and cited examples of
higher education and edible
oil where “a lot of money goes
out”. For the first time, he said,
more than 4 million street
vendors and small shop-
keepers received help from
banks through the PM
Swanidhi Yojana.

Meta plans to lay FMCGs stock up in Feb on summer hope

off thousands Packaged foods grew 27.7 since January and we remained slightly weak as

this week after per cent MoM, while it

firing 11K in Nov
This phase of layoffs could be final-
ised in the next week, according to
the people. Those working on the
plan are hoping to have it ready
before Chief Executive Officer Mark
Zuckerberg goes on parental leave for
his third child, which may be immi-
nent, one person said.
The November cuts were a sur-
prise, but another round of firings has
been widely anticipated by the Meta
workforce. Zuckerberg has dubbed
2023 Meta’s “year of efficiency,” and
the company has been communicat-
ing that theme to employees
during performance reviews, which
were completed last week, the people
said.
Workers at the Menlo Park,
California-based company described
heightened anxiety and low morale
increased by 8.6 per cent
YoY.
Rural sales also wit-
nessed a strong pick-up of
12.4 per cent in February
compared to last year,
while urban sales grew 5.5
per cent last month.
“There is a resurgence
in demand, especially in
rural areas, as rabi har-
vesting has begun. The
wheat crop is a bumper
this year and prices are
also higher due to which
farmers are expecting a
good price for their crop,”
Mayank Shah, senior cat-
egory head, Parle
Products, recently told
Business Standard.
Shah added, “The sen-
timent has been positive
have witnessed a sequen-
tial growth in demand.
Post-Diwali, demand was
impacted but that has now
recovered.”
According to D’Souza,
rural consumption
showed genuine signs of
improvement after August
2022, when consumers
had overcome inflation
fears to celebrate
festivals. “Central and
eastern India have seen a
spike in sales driven by an
early onset of summer and
a rise in stocking,”
D’Souza added.
Central India saw 36.2
per cent YoY growth and
the eastern region 21 per
cent compared to
February 2022. Demand in
South India, however, still
summer stocks are yet to
be replenished.
Tamil Nadu led the state
chart with the highest
growth of 23.3 per cent,
while Uttar Pradesh reco-
rded 14.5 per cent in
February compared to last
year.
D’Souza is counting on
a significant rise in con-
sumption of FMCG pro-
ducts as food inflation is
expected to trend lower
globally in 2023.
“As inflation remains in
control and range-bound,
and with hotter days
ahead of us coupled with
the upcoming IPL cricket
season, we could see a
turnaround in consump-
tion for FMCG products,
driven by rural,” he said.

Suraksha’s takeover of
among colleagues lately. Some
employees expressed worry about
whether they’d receive their bonuses,
which are set to be distributed this
month, if they lose their jobs before-
hand, the people said.
In February, Meta said it was
Jaypee gets NCLT nod
launching a subscription service Besides court delays, a Suraksha plan. homebuyers, apart from
called Meta Verified that will include banker said the resolution ICICI Bank was seeking CoC’s flip-flop, delayed the
a handful of additional perks and fea- was held up on account cash instead of land entire debt resolution pro-
tures, including Facebook and of objections filed by offered in the resolution cess.
Instagram account verification ICICI Bank, Yamuna plan. The company had ear-
badges for those who pay. Expressway Industrial Since the company has lier received interest from
It will cost $11.99 per month — Development Authority, been sent to the bank- JSW, Vedanta, and Adani
$14.99 if purchased through the iOS Jaiprakash Associates, the ruptcy courts, litigation by Group, but they
app — and is primarily targeted parent firm of Jaypee, and stakeholders, including withdrew from the process,
toward content creators. others against the former promoters and citing prolonged delays.
4 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | WEDNESDAY, 8 MARCH 2023

IN BRIEF
Credit card outstanding
increases 29.6% to reach
record high in January
The credit card outstanding in January rose 29.6 per cent to reach an
all-time high of ~1.87 trillion on back of increased digitisation and
rising consumer confidence in the post-Covid period. As per the
latest data of the Reserve Bank, the credit card outstanding has
recorded a growth of over 20 per cent in the 10 months of the current
fiscal year. June had recorded the highest growth of 30.7 per cent.
“Many categories have been digitised which has resulted in
increased spends from existing customers using their credit cards,”
said Rama Mohan Rao Amara, MD & CEO, SBI Card. The ease of
payments has definitely contributed to this increase in spending in
categories, including health and fitness, education, utility bills,
among others, he added. On the monthly trends in credit card
usage, Rao said there has been a consistent growth in the credit
card spends for the last few months. PTI
India-UK FTA talks covered 11
policy areas in seventh round
The seventh round of India-UK free trade agreement (FTA) talks
concluded following technical discussions across 11 policy areas
between negotiators from both sides last month, the British
government has said. In an outcome statement, the Department
for Business and Trade did not give any details on the policy areas
covered, but confirmed that the eighth round of talks is due to take
place in a few weeks’ time. PTI
Slowdown in GDP late last yr
temporary: Moody’s Analytics
Moody’s Analytics on Tuesday said India’s domestic economy,
rather than trade, was its primary engine of growth and the
slowdown in economic activity late last year will only be
temporary. The government data released last week showed
India’s gross domestic product (GDP) growth slowed to a three
quarter low of 4.4 per cent in October-December, 2022, mainly
due to contraction in manufacturing and low private
consumption expenditure. PTI
Land-for-jobs scam case: CBI
questions Lalu for five hours
The CBI on Tuesday questioned former railway
minister and Rashtriya Janata Dal (RJD) supremo
Lalu Prasad for nearly five hours in two sessions in
the land-for-jobs scam case, officials said. The
case pertains to people allegedly given
employment in the railways in return for land
parcels gifted or sold at cheap rates to the Yadav
family and its associates, they said. PTI
Govt to identify 5 coastal
shipping projects for PPP
Proposal to introduce minimum assured offtake to encourage private investment
DHRUVAKSH SAHA
New Delhi, 7 March
A
s part of its plan to reorient
national logistics, the Centre is
likely to invite private participa-
tion in five coastal shipping projects with
a provision of viability gap funding
(VGF) in the approaching fiscal year
(2023-24, or FY24), Business Standard
has learnt.
This follows the announcement by
Finance Minister Nirmala Sitharaman
in her Union Budget speech. “Coastal
shipping will be promoted as the ener-
gy-efficient and lower-cost mode of
transport, both for passengers and
freight, through public-private partner-
ship (PPP) mode with VGF,” she had said.
“Work is currently on to identify these
five projects. The aim is to connect vital,
high-demand economic areas which have
an infrastructure deficit or traditional
transport like roadways and railways that
have reached saturation,” said an official,
adding that the exercise is being under-
taken as part of an action plan to promote
coastal shipping being overseen by the
highest stakeholders in the Centre.
Moreover, the Ministry of Ports,
Shipping, and Waterways (MoPSW) has
plans to conduct 12 roadshows and intro-
duce a raft of provisions for assurance
of revenue to elicit greater private inter-
est in coastal shipping projects. One of
these proposals being considered is to
have a provision for minimum
guaranteed volumes for bulk commodi-
ties such as coal and fertilisers in these
projects, which would allay some con-
cerns of private players.
The Asian Development Bank also
highlighted the issue in its 2019 report
on the promotion of coastal shipping.
“The review of key clauses of recent
EPFO board to meet
HOW MAJOR PORTS FARED IN FY22
Coastal cargo volume (in million metric tonnes)
Cargo loaded 88.51
Cargo unloaded 65.6
Transshipment cargo 18.03
TOTAL CARGO HANDLED 172.15
Source: Indian Ports Association
public sector undertaking (PSU) con-
tracts for coastal shipping highlights
issues detrimental to coastal shipping,
such as no minimum guarantee of cargo,
no fuel price variation for bunker fuel,
fixed transit period of delivering the car-
go,” it had said.
Assured cargo volumes also become
important since the rail-sea-rail mode of
transportation is costlier than using all-
rail, which is a worry for the private sec-
tor. PSUs may still transport their cargo
through the route for key commodities
like coal, as the railway network is typi-
cally overloaded during the summer, as
power demand hits its peak.
Business Standard previously report-
ed that the Centre is holding delibera-
tions on lowering rail freight rates for
thermal coal transported coastally,
which could bring down the overall
transportation costs substantially,
increasing the commercial viability of
these projects. Although costlier, coastal
shipping is an important cog in the
Centre’s wheel to meet its net-zero car-
bon emission targets, as it is believed to
Ice cream sold over
the counter but not
have significantly fewer polluting levels
than railways and roadways.
With a pool of multiple serious play-
ers, India’s ports are a significant market
for international trade, which is exem-
plified by the fact that MoPSW has
already overshot its asset monetisation
target for 2022-23. However, coastal proj-
ects (for the domestic movement of
freight) continue to be laggards owing to
India’s modal mix of freight, where
waterways account for barely 6-8 per
cent of total volumes.
VGF was introduced to support infra-
structure projects undertaken through
PPP mode that are economically justified
but commercially unviable due to large
capital investment requirements, long
gestation periods, and the inability to
increase user charges to commercial lev-
els. In 2020, the Union Cabinet approved
a revamped VGF scheme with an outlay
of ~8,100 crore. Under this, economic
projects were allocated ~6,000 crore of
deficit funding until 2024-25. The outlay
for VGF in FY24 is ~1,700 crore, accord-
ing to the Ministry of Finance.
In Eric Garcetti,
Biden admin
may finally get
envoy to India
ADITI PHADNIS
New Delhi, 7 March
He packed his bags and was ready to go more than
600 days ago. But at last, he might actually be leaving
on a jet plane. On March 8, the Senate Foreign Relations
Committee is slated to vote to advance the nomination
of former Los Angeles Mayor Eric Garcetti as US
Ambassador to India. Garcetti’s nomination is expected
to garner enough Democratic support to advance
through the Committee. Some Senators who had reser-
vations about him have indicated they might have
changed their minds.
US President Joe Biden nominated Eric Garcetti for
the post of ambassador to India in July 2021. But sexual
harassment allegations levelled against Garcetti’s for-
mer municipal aide Rick Jacobs — and suggestions that
they were brought to his notice and he ignored them—
have held up the Senate hearing and confirmation.
A US Senate report published in May 2022 suggested
that it was “extremely unlikely” that Garcetti was
unaware of sexual harassment and racist behaviour by
Jacobs. A separate report by an outside law firm
commissioned by the City of Los Angeles, published
before the Senate report, cleared Garcetti and Jacobs of
wrongdoing. On January 3, Biden announced that he
was resubmitting Garcetti’s name to the Senate, which
now has one more Democrat since the US midterm

INDIA HAS HAD NO US

elections. Obstructions
to Garcetti’s appoint-
ment were bipartisan.

India to send 20K mt of wheat

this month, unlikely prepared in outlet to
attract 18% GST: AAR
AMBASSADOR SINCE
2021. IN JULY 2021, BIDEN
NOMINATED GARCETTI
He conceded as much
when he told CNN in
December 2022: “I’ve

to cut rates below 8%

to Afghanistan via Chabahar
India and five central Asian countries on Tuesday asserted that
Afghanistan’s soil must not be used for any terrorist activities and
called for formation of a “truly inclusive” political structure in
Kabul. At the first meeting of the India-Central Asia joint working
group on Afghanistan, New Delhi announced a fresh tranche of
assistance of 20,000 metric tonnes of wheat to Afghanistan and the
consignments will be sent through the Chabahar Port in Iran. PTI
> BS SUDOKU #3915
SOLUTION TO #3914
Hard:
««««
Solution
tomorrow
HOW TO PLAY
Fill in the grid so that
every row, every col-
umn and every 3x3
box contains
the digits 1 to 9
stopped doing the
INDIVJAL DHASMANA
FOR THE POST, BUT THE
SENATE HELD UP HIS
guessing game of the
when, but I feel quite
optimistic…I have good
SHIVA RAJORA Earlier in March last year, the CBT
New Delhi, 7 March
CONFIRMATION OVER support from Repub-
New Delhi, 7 March had recommended a four-decade low- Sale of ice cream would draw 5 per cent or SEXUAL HARASSMENT licans and Democrats
interest rate of 8.1 per cent for close to 18 per cent goods and services tax (GST), ALLEGATIONS LEVELLED who recognise this is a
A decision on the interest rate for close 60 million active subscribers of the depending on how it is sold. critical position. … I
to 60 million active subscribers of the social security organisation for the The one sold over the counter and not
AGAINST HIS AIDE can’t wait to get to
Employee Provident Fund financial year 2021-22, leaving it with prepared in the outlet concerned would be work.” He was not the
Organisation (EPFO) is likely to be tak- an estimated surplus of ~450 crore. It treated as ice cream from parlour. It would only one who was anxious to start work. “I am commit-
en in the next Central Board of Trustee was then ratified by the finance min- hence attract 18 per cent GST, ruled the ted to making the US-India partnership among the clos-
(CBT) meeting, starting on March 25. istry in June 2022. Gujarat-based Authority for Advance est we have,” Biden declared during a meeting with
A letter from the Last month, in an Rulings (AAR). The sale of such ice creams Indian Prime Minister Narendra Modi in May 2022.
social security organi- interview to a would be treated as the supply of goods, it Just before India assumed the presidency of the G20,
sation regarding the newspaper, the labour said. On the other hand, an ice cream when US Secretary of State Antony Blinken termed the US
convening of the 233rd minister Bhupender ordered and supplied along with cooked or relationship with India as “one of the most consequen-
CBT meeting was sent Yadav had said that the prepared food through the outlets would tial in the world”.
to all the board mem- rate for FY23 will be assume the character of composite supply. New Delhi has had no US Ambassador since 2021,
bers last week, solicit- determined on the basis It would draw 5 per cent GST without input when Kenneth Ian Juster stepped down at the end of
ing their presence in of contributions and tax credit. Such a sale would be treated as the Trump administration.
the meeting. withdrawals. composite supply with food as the principal Congress MP Shashi Tharoor says: “While White
Although the venue “It should be appre- one and come under restaurant services, House officials privately blame the Senate confirmation
and the agenda haven’t LIKELY AGENDA ciated that the interest ruled the AAR. process for the absence of a permanent ambassador,
been drawn out yet, is determined based on The AAR interpreted the GST Council the question remains: If India matters as much as the
sources familiar with
n Two-day meet from the contributions decision and relevant circulars in this regard. US says it does, why has the administration not acted
the matter say that the March 25 to decide interest received in EPF Sandeep Sehgal, partner, tax, AKM Global, more forcefully to get its nominee confirmed?”
interest rate is unlikely rate for 60 million accounts, withdrawals said, “The AAR has clarified that the appli- Not all hurdles have been crossed. “One of these
to go below 8 per cent active EPFO subscribers made by EPF members, cability of GST on the sale of readily-avail- nominees has ignored credible sexual assault accusa-
level amid a rising n The issue of higher pension income received during able ice cream by restaurants and eating tions in his prior office,” said Senator Marco Rubio,
interest rate scenario the year. The rate will joints shall be 18 per cent. However, when Republican Senator from Florida, in a statement last
across the globe.
and smooth implementation be recommended served with food in a restaurant, it has been month announcing his intention to oppose six ambas-
Besides, the issue of of the Supreme Court’s before the close of the considered naturally bundled. Hence, a sadorial nominations proposed by the Biden adminis-
higher pension and the recent order may also financial year as per the composite supply would be taxable at 5 per tration, including Garcetti’s. “I will not turn a blind eye
smooth implementa- feature in the meeting scheme provisions. cent. However, when taxed at 5 per cent, the to these absurd nominations, which will hasten
tion of the November 4 n In March last year, CBT Hence, it will be taken restaurant owners are not eligible to claim America’s decline.”
Supreme Court order up in the CBT during the credit of GST paid on purchase of ice But some have had a rethink. “I’m ready to move
recommended a four-
along with the difficul- the concluding month creams.” on,” Mazie Hirono (Democrat Senator from Hawaii,
ties that pensioners are decade low interest rate of of the financial year,” he The authority announced the order on who will back Garcetti, told local media last month.
facing in accessing the 8.1% for active subscribers said. R Karumalaiyan, an application filed by Ahmedabad-based Tammy Duckworth (Democrat Senator from Illinois)
pension portal is also who represents Centre HRPL Restaurant, which runs a chain of eat- has also indicated she will support Garcetti.
likely to feature in the for Indian Trade Union ing joints. The AAR found that ice cream The G20 summit, due in September, will see a New
two-day meeting. (CITU) in the CBT says given that infla- sold by outlets of the applicant is already Delhi visit by President Biden. Without an ambassador
The last trustee meeting was held tion has remained above the central manufactured. The applicant had sold its in place before that, it could be embarrassing. “In India,
on October 31 where among other bank’s tolerance band for the most part ice cream division way back in 2017. where we have no ambassador, we are struggling to
things, it was decided to extend pro- of the year and the hike in interest rate “Therefore, we hold that ice cream sold gain New Delhi’s support for pressure on Russia to end
portionate pensionary benefits for triggered by the tightening of the policy by the applicant’s outlet over the counter its aggression in Ukraine and working to develop
members who have been in the scheme rate by US Fed, it is imperative that would not fall within the ambit of ‘restaurant greater ties with the second-most populous country on
for more than 34 years by incorporat- the interest rate is kept above 8 per cent service’ and is the supply of goods. Hence, earth,” says Eric Rubin, president of the American
ing factors for year “less than 35 years” for subscribers to make some gains on it would attract GST at the rate of l8 per cent,” Foreign Service Association whose members include
to year “less than 42 years”. their savings. the AAR ruled. serving and retired members of the foreign service.

Untimely rain haunts farmers in MP, Maha, Guj ahead of harvest

Damage could be more widespread if showers and gusty winds continue for a few days more
SANJEEB MUKHERJEE
New Delhi, 7 March
Sudden rain with gusty winds
and hailstorm over the past few
days has deepened the worries of
farmers in central and western
parts of the country because this
compounds the problems posed
by a relatively early advent of
summer.
Reports show standing crops
in some districts of Maharashtra,
Madhya Pradesh, and the
Saurashtra and Kutch regions of
Gujarat seem to have been
affected due to hailstorm but a
comprehensive assessment of
the damage could be made only
after a thorough survey is done
by government officials.
If the showers and gusty
winds continue for a few more
days, the damage can be more
widespread for crops that are to
be harvested.
In Gujarat, farmers said the
standing jeera, castor, and
coriander crops had been hit due
to rain and hailstorm in some
fields, while in Madhya Pradesh
wheat in Mandsaur, Neemuch,
Rajgarh and Sehore could be
affected, mostly those that will
be harvested in 8-10 days.
Jeetendra Ahir from Kutch
said: “Standing crops of ajwain,
saunf and even mustard have
been impacted.”
Bhagwan Meena, founder of
the Kisan Swaraj Sangathan, a
Madhya Pradesh-based farmers
group, said: “Rain and gusty
winds at this time can flatten
and discolour wheat.”
Madhya Pradesh Chief
Minister Shivraj Singh Chouhan
in a late night tweet asked
farmers not to worry because the
state government was
conducting a survey to assess
the damage.
In Maharashtra, PTI reported
Chief Minister Eknath Shinde
said untimely rain lashed at least
five districts of the state,
damaging standing crops just
ahead of harvest.
Taking stock of the situation,
Shinde asked officials to
conduct panchnamas, or
assessments of the losses,
suffered by farmers, an official
release said.
The affected districts include
Thane, Palghar, and parts of
Washim, Nashik, and
Aurangabad.
Meanwhile, the intensity
and spread of the unseasonal
rain and hailstorm might go
down in the next few days, the
weather office said.
The India Meteorological
Department (IMD), in its latest
weather report released on
Tuesday, said isolated
thunderstorms or hailstorm
was likely over MP and
Maharashtra during the next
24 hours and over North
Odisha, Gangetic West Bengal,
and Jharkhand during March
9-10. Maximum temperature is
very likely to fall over Central
India and Maharashtra by 2-4
degree Celsius during the next
two days and rise by 2-4
degrees in the subsequent
three days.
No significant change in
maximum temperature is
likely in Gujarat during the
next two days and it will rise by
2-4 degree Celsius during
subsequent three days.
In the rest of the country,
not much change in maximum
temperature is expected over
the next five days, the Met said. Damaged crops in Saurashtra and Kutch regions of Gujarat PHOTO: FARMER GROUPS
.
NEW DELHI | WEDNESDAY, 8 MARCH 2023 5
<

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for Naturalization and that Any person
who knows any reason why
Naturalization should not be granted
should Send a written signed statement
of the facts to the said Secretary.
Notice is hereby given that Rajesh
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2nd floor, Duggal Colony, devli Road,
khanpur, Delhi.110062, is applying to
the Secretary To the Government of
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for Naturalization and that Any person
who knows any reason why
Naturalization should not be granted
should Send a written signed statement
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6 POLITICS & PUBLIC AFFAIRS
>
NEW DELHI | WEDNESDAY, 8 MARCH 2023

Biased: SBI report on Rajan’s

Hindu rate of growth remark
A
n SBI research report on Tuesday
dismissed arguments that India
was dangerously close to Hindu
rate of growth saying such statements were
“ill-conceived, biased, and premature” in
the wake of the recent economic growth
numbers and the available data on savings
and investments.
“Interpretations of GDP growth based
on noisy quarterly numbers is a game of
smoke and mirror,” said the SBI report
'Ecowrap'. The report comes within days
of former Reserve Bank governor
Raghuram Rajan saying that India is "dan-
gerously close" to the Hindu rate of growth
in view of subdued private sector invest-
ment, high interest rates, and slowing
global growth.
Rajan said sequential slowdown in the
quarterly growth, as revealed by the latest
estimate of national income released by
the National Statistical Office (NSO) last
month, was worrying.
Hindu rate of growth is a term describ-
ing low Indian economic growth rates
from the 1950s to the 1980s, which aver-
aged 3.5 per cent.
The term was coined by Raj Krishna,
an Indian economist, in 1978 to describe
the slow growth “India's quarterly YoY on private sector investment that jumped
GDP growth has been in a declining trend from 10 per cent to 10.8 per cent over the
in FY23 sequentially, same period,” it said.
prompting arguments that THE REPORT FINDS THE In fact, Ecowrap added
India's growth is reminis- ARGUMENT BY FORMER that the trends in GCF to
cent of a pre-1980 Raj RBI GOVERNOR gross output ratio or the
Krishna coined growth rate,” RAGHURAM RAJAN plough back of funds for
the report said. ILL-CONCEIVED AND creation of fresh capacity
Apart from the fact that, PREMATURE AT ITS shows that for public
quarterly growth numbers BEST WHEN WEIGHING administration the ratio
are “noisy and should be THE RECENT GDP attained fresh peak in 2021-
best avoided for any serious NUMBERS AGAINST 22 owing to the emphasis
interpretation (on an aver- THE AVAILABLE DATA on capital expenditure in
age, India's GDP growth has ON SAVINGS AND recent Budgets.
witnessed ~2 trillion upward INVESTMENTS At the aggregate level,
revision for the three years gross capital formation is
ended FY23), “we find such supposed to have crossed
argument ill-conceived, biased and pre- 32 per cent in 2022-23, the highest level
mature at its best when weighing the since 2018-19.
recent GDP numbers against the available According to the report, in 2021-22,
data on savings and investments." The gross savings have risen to 30 per cent
investment and savings data for the past from 29 per cent in 2020-21. "The ratio is
decade reveals interesting points, said the supposed to have crossed 31 per cent in
report authored by Soumya Kanti Ghosh, 2022-23, the highest since 2018-19. The
Group Chief Economic Adviser, SBI. household savings increased sharply dur-
Gross capital formation (GCF) by the ing the pandemic period on account of
government touched a high of 11.8 per sharp accretion in financial savings such
cent in 2021-22, up from 10.7 per cent in as deposits," said the report by SBI's
2020-21. “This also had a domino effect Economic Research Department. PTI

RIO IS NAGALAND CM FOR

5TH TIME; SANGMA BEGINS
2ND TERM IN MEGHALAYA

Congress leader Rahul Gandhi interacts with UK’s MPs, academics, and leaders
of the Indian Overseas Congress, in London PHOTO: PTI

BJP says Rahul Gandhi

insulted India abroad;
twisting statement: Cong
The Bharatiya Janata Party (BJP) on
Tuesday accused Congress leader
Rahul Gandhi of insulting India’s
democracy from foreign land and
lashed out for his trenchant criticism
of the government and RSS at events
in Britain, claiming it is its clear con-
viction that he is completely in the
grip of “Maoist thought process
through his minions” and also “anar-
chist elements”.
During an event organised by vet-
eran Indian-origin Opposition Labour
Party MP Virendra Sharma within the
House of Commons complex, Gandhi
said opposition parties in India were
often not allowed to debate issues in
Parliament.
Addressing a press conference, for-
mer Union minister and BJP leader
Ravi Shankar Prasad expressed his par-
ty’s disapproval of Gandhi “misusing
the forum of British Parliament” to
“insult” India by spreading “shameful”
lies and unfounded claims, and said
there needed to be a “proper rebuttal”.
The Congress hit back, accusing
Prasad of distorting, twisting, and lying
“with a straight face”.
Prasad said Gandhi had forgotten
all parliamentary norms, political pro-
priety and “democratic shame” by crit-
icising Indians from abroad. He said
people of India neither listen nor
understand him and supporting him is
a distant thing. Therefore, Gandhi goes
abroad and laments that India’s democ-
racy is in danger. This is a matter of
great shame, Prasad said. “Gandhi has
insulted everything, including India’s
democracy, Parliament, people, NDPP leader Neiphiu Rio (top) on Tuesday
political system, judicial system, and took oath as the chief minister (CM) of
strategic security,” Prasad said. Nagaland for a fifth term and National
Congress general secretary Jairam People’s Party (NPP) chief Conrad K
Ramesh tweeted: “Prasad is doing what Sangma (above) was sworn in as Meghalaya
he and his Supremo do best — distort, CM for a second time in a row, in the
twist, defame and lie with a straight presence of Prime Minister Narendra Modi.
face.” Congress’ media department Nagaland CM Rio will lead an all-party
head Pawan Khera said” “There is noth- Opposition-less government, even as the
ing more amusing than watching an NDPP-BJP alliance secured 37 seats in the
unemployed leader of a ruling party 60-member House in the recent Assembly
trying to seek relevance and re-employ- polls. In Meghalaya, the ruling coalition
ment.” “Those who have a full time job would be called the Meghalaya Democratic
of twisting statements of opposition Alliance 2.0 since its partners are the same
leaders forget their own favourite slo- as the previous one. PHOTOS: PTI
gan Ab Kii Baar, Trump Sarkaar.” PTI

‘Importers should ensure that

certificate of origin is genuine ’
CHATROOM
T N C RAJAGOPALAN
We are starting a merchant
exporting activity. We
understand that we can
source goods from domestic
parties on payment of 0.1 per
cent GST and export under
LUT, but we have to give a
copy of the shipping bill to
our supplier. We are afraid
this will reveal the name and
address of our overseas
customer to our local
supplier. Is there any way
to avoid that?
The DGFT Policy Circular no.
18/2006 dated September 4,
2006, says that in order to pre-
vent leakage of confidential
information, exporters are
allowed to deface the name
and address of foreign buyers
in shipping bills and other
documents when presented
to the Regional Authorities for
claiming benefits under vari-
ous export promotion
schemes. In my opinion, the
other authorities also need
have no objection in accept-
ing shipping bills with the
name and address of the for-
eign buyers defaced. You can
discuss this matter with your
local supplier upfront.
We intend to import a
machine on duty payment
and re-export it after using it
for the manufacture of some
items for a few quarters. Can
we take input tax credit of
the IGST that we have to pay
on the machine?
Yes. You can take input tax
credit of the IGST paid, so long
as the conditions required for
taking such credit are met.
There is no bar on taking the
credit merely on the premise
that you intend to re-export the
goods after some time.
We import stainless steel
coils and sheets from Asean
countries under the FTA. The
supplier provides the
Certificate of Origin (COO) in
Form ‘A’, on the basis of
which we claim exemption of
basic Customs duty. Are we
obliged to verify the genuine-
ness of form ‘A’, or is it incum-
bent on the Customs to
check the authenticity of
Form ‘A’ before allowing
clearance? Does Customs
(Administration of Rules of
Origin under Trade
Agreement) Rules, 2020
(CAROTAR) impose addition-
al obligations on us to check
the veracity of Form ‘A’?
First of all, please note that
you have no right to present
any non-genuine document
and say that it is the job of the
Customs to verify its genuine-
ness. The Customs usually
will accept the documents
presented by you as genuine
in good faith, unless they have
specific reasons to doubt the
genuineness of any docu-
ment, in which case, they may
initiate necessary enquiries
before clearing the goods. If
the Customs discover, after
clearance, that you have pre-
sented any bogus documents,
they can initiate necessary
action to recover the duties
and also punish you.
Regarding the COO,
CAROTAR clearly spells out
the obligations of the
importer at Rule 4, which
includes the obligation to
exercise reasonable care to
ensure the accuracy and
truthfulness of the docu-
ments and information that
the importer is required to
possess. Rule 8 of the said
Rules allows the proper offi-
cer to request for verification
of COO from the verification
authority in the exporting
country, either during the
course of customs clearance
or thereafter.

Business Standard invites readers’ SME queries related to GST, export and import matters. You can write to us at smechat@bsmail.in
.
Pathaan to the rescue
Can single screens be resuscitated?
VANITA KOHLI-KHANDEKAR
Pune, 7 March
K
ohinoor Cinema
(Suratgarh, Rajasthan),
Cine Kamla Ponda
(Goa), JC Palace (Badaun,
Uttar Pradesh) and Lajwanti
Talkies (Bishrampur,
Chhattisgarh) are among the
25 single screens across India
that reopened because of
Siddharth Anand’s Pathaan
(Yash Raj Films). The Shah
Rukh Khan-starrer has
become one of the biggest hits
in Indian cinema with over
~1,000 crore in worldwide
gross, so far. “More than 500
cinemas had shut down during
the pandemic. Post-Pathaan a
lot of these are opening,” says
Rajesh Mishra, executive direc-
tor and group CEO, UFO
Moviez. It offers digital cinema
solutions to over 3,400 screens
in India. Of this 2,000 are sin-
gle screens, which UFO also
aggregates for advertising.
Between 30 and 40 per
cent of the ~500 crore
Pathaan grossed in Indian
theatres has come from single
screens. It has, along with
RRR, infused new energy and
hope into India’s beleaguered
single screens. About time,
say analysts.
From 10,000 screens over a
decade ago, India is now down
to about 8,000 screens. Of
these 3,500 are multiplex
screens. These continue to
grow even as single screens,
now at 4,500 in number, shut
with miserable regularity. In
2019, the last normal year the
business saw, films made
Saving lives and livelihoods
during Covid-19 pandemic
A Stanford University report assesses economic impact of India’s
vaccination and related measures
VINOD K PAUL
In January 2021, India started
rolling out a historic Covid-19
vaccination drive. Since then,
over 2.2 billion vaccine doses
have been administered. India
hit the astonishing figure of 2
billion doses in 18 months, mak-
ing the effort truly unparalleled
both in scale and speed. We also
created a record of administer-
ing 25.1 million doses on a single
day, and of administering more
than 10 million doses on nine
other days.
What is even more remark-
able is that the entire vaccina-
tion programme was powered
by two made-in-India vaccines.
Over 97 per cent of the vaccines
were provided free through the
public health system. Real-life
data analysed by ICMR showed
effectiveness of one- and two-
dose vaccination to be 99 per
cent and 99.4 per cent respec-
tively in preventing mortality
due to Covid-19.
A study published in the
prestigious Lancet Infectious
Diseases in September 2022 esti-
mated the impact of the first ye-
ar of Covid-19 vaccination wor-
ldwide. The paper showed that
as many as 3.4 million (range
2.75–4.88 million) deaths were
averted in India by the vaccina-
tion programme in 2021 alone.
Now, a working paper
released by the Stanford
University and the Institute for
Competitiveness (titled
“Healing the Economy:
Estimating Economic Impact of
Vaccination & Related
Measures”), while highlighting
and using the above mortality
reduction figure, has gone
further to provide an estimate
of income-generating potential
of the vaccination programme.
The report estimates that the
life-saving campaign yielded a
positive economic impact by
preventing the loss of $18.3 bil-
lion (~1.29 trillion). According to
the paper, a net benefit of $15.42
billion (~1.09 trillion) accrued to
the nation after taking into con-
sideration the cost of the vacci-
nation campaign.
A related aspect has an
important bearing at this point.
The government procured the
India-made Covid-19 vaccines
NEW DELHI | WEDNESDAY, 8 MARCH 2023
WHAT BRINGS
MONEY
TO CINEMA?
2019 Normal year
2021 Pandemic year
FILMS RELEASED
1,833
757
Source: FICCI-EY reports
~19,100 crore in total revenues.
Of this, domestic theatrical
revenue or the money Indian
cine goers paid to watch films
on a screen was the largest
chunk at ~11,500 crore.
for under $3 per dose. The mar-
ket price of the globally popular
mRNA vaccines (Pfizer and
Moderna), though varied, was
typically about $20 per dose. At
such a price, the staggering cost
of $40 billion (~3 trillion) for two
billion doses would have meant
an enormous economic stress
for the country. In any case,
there were simply not enough
spare vaccine doses in 2021 in
the global market to meet
India’s humongous need from
any external source, and we
would have been left high
and dry if we did not have our
own production. Thanks to
“atmanirbharta”, the country
sailed through the crisis with
its head held high by develop-
ing and delivering affordable
and effective made-in-India
vaccines. We not only protected
our own people, but also shared
our produce with over 100
countries through the Vaccine
Maitri initiative.
According to the Stanford
paper, India set an example for
emerging economies aiming to
expand vaccination coverage
across the length and breadth
of the country. With a strategic
and prioritised vaccination
drive and efficient coordination
among the stakeholders, India
proved that expanding vaccina-
tion coverage was not an insur-
mountable goal despite a range
of challenges.
Further, the role of India’s
frontline health workers, espe-
cially the ASHAs, in the vacci-
nation drive is a testimony to
their importance in the health-
care system especially at
the local level. The report notes
that ASHA workers served
as the point of contact between
the authorities and the masses.
They richly deserve the
Global Health Leaders Award
bestowed by the World Health
Organization at the 2022 World
Health Assembly.
The vaccination drive,
however, was only one impor-
tant part of India’s globally rec-
ognised pandemic manage-
ment and response strategy.
The paper elaborates the three
cornerstones of India’s strategy
— containment, relief package,
and vaccine administration. It
observes that these three meas-
ures working in conjunction
were critical in saving lives and
ensuring uninterrupted eco-
nomic activity by containing
the spread of the Covid-19, sus-
taining livelihoods, and devel-
oping immunity against the
virus. India’s pandemic man-
agement and response was bol-
stered further by acclaimed IT
tools such as CoWIN, Aarogya
NUMBER
11,500
OF SCREENS
n Single screens
n Mutiplexes
3,200
3,500
3,900
6,327
4,500
9,527 8,000
TOTAL
Domestic
theatrical/box office
ADMISSIONS
(TICKETS SOLD, MILLION)
1,460
418
Roughly half of this comes
from multiplexes though their
screen count is lower than sin-
gle screens.
RRR and Pathaan have
reminded the trade and the
With a strategic and prioritised vaccination drive and
efficient coordination among the stakeholders, India
proved that expanding vaccination coverage was not
an insurmountable goal despite a range of challenges
Setu and eSanjeevani.
The Stanford report notes
that robust measures at the
ground level, like contact trac-
ing, mass testing, home quar-
antine, distribution of essential
medical equipment, revamping
healthcare infrastructure, and
constant coordination among
multiple stakeholders at the
Centre, state and district levels,
helped contain the spread of the
virus and prepare a massive
hospital infrastructure for care.
It highlights that as against a
top-down approach, a bottom-
up approach was critical in con-
taining the virus.
The Economic Survey
(2020-21) had shown that India
was able to save more than
100,000 lives due to the lock-
down in 2020. It pointed out
that because of this measure,
the country took around 175
days to reach the peak from its
first 100 cases, while many
countries (Russia, Canada,
France, Italy, Germany, etc.)
reached their first peak in less
than 50 days. According to the
Stanford report, the lockdown
and subsequent containment
measures helped flatten the
curve and struck a balance
between saving lives and sus-
tained economic activity.
The calibrated approach
used by India in formulating a
comprehensive relief package,
as opposed to a front-loaded sti-
mulus package, played a major
role in reducing the financial
stress on the people and in ush-
ering in a resilient post-pan-
demic trajectory.
With a comprehensive pack-
age that encompassed old
people, women, farmers and
TAKE TWO 7 <
Women in
Single screens’ sold and how much money is With anywhere between
double trouble collected. Therefore, the trade 800 and 1,500 seats, each sin-
Balgovind Raj Tadla is a part-
ner in two single screen cine-
and studios prefer a minimum gle screen was built for scale.
revenue upfront. Mishra says The cost of running a single informal
mas in Hyderabad. One of
these, Devi (70 mm), was built
that UFO has been pushing screen is impossible to main-
theatres to become transpar- tain without the hall filling up sector aspire
in 1981 with 1,500 seats — now
whittled down to 1,350. Like in
ent but it has been difficult. several times a year. The need
“Whoever upgrades (installs for films that people will make more: Study
most cities, films don’t last for air conditioning, computers) the effort to come to the the-
more than a week in the the- does good business,” says he. atre for has been a challenge RAGHAV AGGARWAL
atre. If a film does earn say ~60 This is perhaps more true for every cinema since the New Delhi, 7 March
lakh over three weeks of for Hindi and Telugu — the advent of cable and satellite
release, on an average a single two largest cinemas in India. TV, then video and DVD. With As many as 18 per cent of
screen gets ~6 lakh of that. That In Tamil Nadu, the local gov- streaming video in the play the women working in India’s
is about a fourth of what mul- ernment regulates ticket watching of most edgy films informal economy want
tiplexes might get. “In the last prices. “The average price is and series has shifted online. to “build a career” compared
one year more than eight ~120 a ticket and the highest it Currently, what seems to be to 13 per cent men, said a
screens have shut down in can go to is ~190 a ticket,” says determining occupancy over a private firm’s research on
Hyderabad because of insuffi- Ruban Madhivanan, manag- longish period of time is big Tuesday about jobs that
cient revenues. The reason is ing partner, GK Cinemas, stylised, event films like RRR are typically low paid and
not less movies or less success- which owns 10 or Pathaan. But temporary.
ful movies, but less revenue per screens in Chennai. If a film does just three-four tent- “According to the study
movie. It is up to the producers This has ensured earn say ~60 lakh pole films a year is that is underway, more than
to give fair revenue share to sin- that multiplexes, over three weeks not enough to sus- half of informal female
gle screens, just like they give which generally of release, on an tain these mam- employees (56 per cent) pri-
to multiplexes,” says Tadla. have higher aver- average, a single moth properties. oritise non-monetary
The complete contrast in age prices, haven’t screen gets ~6 “Between aspects such as building a
business models of multi- gained ground. lakh of that. That Pathaan and the career, contributing to the
REVENUES (~CR)
plexes and single screens is the More importantly, is about a fourth next blockbuster community, learning new
OVERALL
19,100
first systemic imbalance that
growth will have to address.
Multiplexes work on a
“there is no mini- of what
mum guarantee in multiplexes
Tamil Nadu any- might get
you need those
medium budget
film hits like
skills, and supporting their
passions and interests,” said
staffing firm Quess Corp.
portfolio basis. They have four
and six screens of anywhere
where. It has been
a revenue share for
Drishyam that will
keep the theatres
As many as 63 per cent of
women wanted health
between 100 and 400 seats the last six-seven years”, says occupied,” says Akshay Rathi, benefits and formal job
9,300
4,000
and vary the number of Madhivanan. director, Aashirward Theatres, agreement over money in
shows, their time, ticket prices Analysts counter that noth- a chain of 17 single-screen the- their informal jobs. As many
2,700
and even food according to ing stops other single-screen atres across Chhattisgarh and as 28 per cent men made
2,200
1,900
800 the film and how it is doing.
This mitigates the risk inher-
owners from negotiating Madhya Pradesh.
jointly with the studios for a Film folks are still figuring
such a preference.
700
600
ent in depending on one film revenue share a la multiplexes. out how to navigate the post- Women wanted in gig
advertising 100
or one source of revenue. But getting thousands of sin- pandemic, OTT-satiated workforce
Multiplexes operate on a reve- gle-screen owners on the same audience and get them back to According to a separate
Overseas
theatrical/box office
TV rights
In-cinema
Others (home video,
music, digital, etc)
nue-share basis. The big ones page is not an easy job. That, the theatres. If they can do it report by gig discovery plat-
get 50 per cent or more of a then, is where things stay. consistently, there is hope. As form Taskmo, last year dem-
film’s collections. things stand, for many single- and for women gig workers
Single screens, on the other Getting them in screen owners, selling the increased around ten-fold.
hand, have to pay an upfront “In the earlier days with films prime land most of them sit on “There are plenty of roles
minimum guarantee to dis- running for long, a smaller and putting it in a fixed deposit in which women gig workers
tributors if they want to exhibit share was OK. But nowadays is more lucrative than running are specifically preferred,
studios of the economic power the film. Many studio heads there is no long run,” says the theatre on a handful of hits. like content moderation,
of single screens. Whether this point out that an estimated Tadla. That brings this to “Most owners keep going business executives, telecal-
acts as a catalyst for their 2,500 of the 4,500 single the second systemic issue — because of passion,” says ling, and other marketing
revival depends on how much screens are still not computer- there simply aren’t enough sin- Madhivanan. Here’s hoping and communication roles,”
of the systemic mess this ised. That makes it difficult to gle screen (read mass) films that they keep going till more said Prashnat Janadri, co-
round of growth clears up. gauge how many tickets are being made. Pathaans come to the rescue. founder at Taskmo.
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accordance of the SARFAESI Act 2002 and rules there to. The secured asset will be sold through public auction by bidding for realization of the loan dues, applicable
interest, charges and costs etc., payable to BHFL as detailed below. The secured asset is being sold on and the bidding will be held on “AS IS WHERE IS”, “AS IS WHAT
IS”, “WHATEVER THERE IS” AND “WITHOUT RECOURSE BASIS” under the rule number 8 & 9 of the Security Interest (Enforcement) Rules (hereinafter referred to as
the rules) and on the terms and conditions specified here-under:
Names of the Secured debt for recovery
Borrowers Name & Address
Co-Borrowers with address of which property is sold.
BORROWER : YOGESH VERMA, At H. NO- (Co-Borrower) TOTAL Rs. 31,31,515/- (Thirty One lacs Thirty One Thousands Five
1706, INDIRA NAGAR-1, BRAHMPURI Hundred Fifteen Only) as on 04th Mar 2023 in Loan Account Numbers
NA
MEERUT, UTTAR PARDESH - 250002 H401HHL0148968 and H401HLT0158735
the working class, the Pradhan Last Date and time for
Place, Date and Time Reserve price/
Mantri Garib Kalyan Yojana Title Deed Property Description EMD/Bid
submission of the request
(PMGKY) amounting to ~68,820 Holder Name of the Opening of Bids letter for participation/KYC
Increment
crore ($9.7 billion) ensured that Documents/ Proof of EMD etc.
the impact on the livelihoods of YOGESH VERMA Flat No-620 6th Floor Tower-f, Date : 28-03-23 Reserve Price: Rs. 19,00,000/- 27-03-2023 till
Phase-1a Urban Home, Aditya Time : 11.00 AM (Rupees Nineteen Lakh Only)
people was moderated to an 5:00 PM
World City, Ghaziabad, Uttar Place: Bajaj Housing EMD: 10% of Reserve Price. Rs.
extent. According to the Pradesh-201014. East : Flat No Finance Limited, 14th Floor 1,90,000/- (One Lakh Ninety
Stanford report, as a fiscal sti- 618, West : Lift, North : Open, Thousands Only)
Aggarwal Metro Heights
mulus, the PMGKY had an eco- South : Passage Netaji Subhash Palace **No Bid Increment on the spot is
nomic impact of $7.57 billion Pitampura New Delhi -110034 allowed.
(~53,679 crore). Under the PM DATE AND TIME OF INSPECTION OF THE PROPERTY: FROM 10/03/2023 to 24/03/2023 BETWEEN 10:00 AM AND 4:00 PM
Garib Kalyan Rozgar Abhiyan, Terms and Conditions of the Public Auction are as under:
40 lakh beneficiaries were pro- 1. Public Auction is being held on “AS IS WHERE IS, AS IS WHAT IS AND WITHOUT RECOURSE BASIS” and is being sold with all the existing and future encumbrances
vided employment, which whether known or unknown to Bajaj Housing Finance Limited. The bid form, Declaration, General Terms and Conditions of Public Auction can be obtained from office of
resulted in an overall economic Bajaj Housing Finance Limited, 14th Floor Aggarwal Metro Heights Netaji Subhash Palace Pitampura New Delhi -110034.
2. The Secured asset will not be sold below the Reserve price.
impact of $4.81 billion (~34,095 To the best of the knowledge and information of the Authorized Officer, there is no encumbrance on the properties. However, it is necessary that the intending bidders should
crore). The PMGKY involved make their own independent inquiries regarding any claims, charges, dues, encumbrances and should satisfy about the title, extent/measurement of the property prior to
distribution of free food grains submitting their bid. For any discrepancy in the property the participating bidder is solely responsible for all future recourses from the date of submission of bid.
3. No claim of whatsoever nature regarding the property put up for sale, charges/encumbrances over the property or on any other matter etc will be entertained after
to approximately 8 million submission of the bid.
people, which ensured that no 4. The Authorized Officer/BHFL will not be responsible for any charge, lien, encumbrance, property tax dues, electricity dues etc. or any other dues to the Government, local
one slept hungry. It made a authority or anybody, in respect of the property under sale.
huge economic impact of 5. The Public Auction notice/advertisement does not constitute and will not be deemed to constitute any offer, commitment or any representation of Bajaj Housing Finance
Limited. The Authorized Officer/BHFL shall not be responsible in any way for any third party claims/rights/dues.
$26.24 billion (~1.86 trillion) 6. The Sale shall be subject to the rules/conditions prescribed under the SARFAESI Act 2002 and rules thereto.
according to the Stanford study. 7. It shall be the responsibility of the bidders to inspect (a) the title and link documents and (b) the property and satisfy themselves about the secured asset and specification
The pandemic had devastat- before submitting the bid. Before entering the premises for inspection, it is necessary that the interested purchaser shall provide their identity, address and contact details
in the register confirming their entry and exit from property under their signature.
ing effects on the global econ- 8. The interested bidders shall submit their bids along with EMD, which shall be payable only through D.D.in favour of Bajaj Housing Finance Limited payable on or before the
omy. Institutions such as the last day and time mentioned above.
United Nations and the 9. The Bids along with other documents must be submitted to the Authorized Officer in a sealed envelope mentioning “Offer for Purchase- YOGESH VERMA LAN:-
International Monetary Fund H401HHL0148968 and H401HLT0158735 to reach the Authorized Officer on or before the last date of submission of the Bids.
10. The bidder is supposed to submit the following documents at the time of submission of the bid: i) Proof of EMD paid ii) copy of the Pan Card iii) Proof of identification/
estimated losses of trillions of Address proof/Aadhaar Card/KYC (self-attested copies) without which the bid is liable to be rejected.
dollars. For India, a country 11. The bidder alone can participate in the public auction proceeding and no other person is permitted.
heading into higher orbits of its 12. The successful Bidder must deposit the 25% of the purchase amount (after adjusting the EMD already paid) immediately upon the acceptance of the offer and declaration
of the successful bidder by the Authorized officer, failing which the EMD paid shall be forfeited and cannot be claimed by the bidder from Bajaj Housing Finance Limited.
development and economic 13. The balance 75% of the purchase amount must be deposited by the successful bidder within 15 days, failing which the amounts already deposited by the bidder shall stand
robustness, such a setback automatically forfeited without further notice and no request for refunds whatsoever shall be entertained. Further, the property will be put to re-auction and the defaulting
could have been catastrophic. bidder shall have no claim/right in respect of the property/amount and will not be eligible to participate in the re-auction, if any.
Yet, India continues to be the 14. No interest is applicable to EMD or any amount deposited by the bidders/successful bidder in respect of sale of secured asset.
15. The Purchaser/successful bidder shall bear the (a) applicable stamp duty/registration/transfer charges; (b) all the statutory, non-statutory, conversion, electricity, sewage
fastest-growing major economy charges, any dues, cess, fees, taxes, rates, assessment charges etc. owing to any person, association or authority shall be borne by the successful Bidder only.
even after the pandemic. 16. Sale certificate shall be issued in the prescribed format in favor of successful bidder only.
Indeed, India has emerged 17. The successful bidder shall have to arrange for registration etc., at his/her/its cost of the sale certificate as per the provisions of prevailing Stamp and Registration Act. The
successful bidder shall bear the charges for conveyance, registration fee, stamp duty, taxes, fee etc. as applicable.
stronger in the post-pandemic 18. In case of sale of property subject to any encumbrances, the successful bidder/purchaser shall deposit money required to discharge the encumbrance including interest,
world under the leadership of cost, expenses etc. if any to the Authorized officer.
the Prime Minister, having been 19. In case if the public auction is stopped, stayed, postponed or rescheduled or cancelled, a public notice will be put on the notice board of BHFL branch and no
personalized/individual communication in this regard will be sent to any of the bidders or otherwise.
successful in protecting lives
20. Submission of bid by the bidders is construed that they have read, understood and accepted the terms and conditions governing the public auction.
and livelihoods, and in preserv- 21. EMD of unsuccessful bidders shall be returned on the closure of auction proceedings.
ing the energy and dynamism 22. The Authorized officer is not bound to accept the highest offer/bid and the Authorized officer has absolute right to accept or reject any or all offer(s) or
of the nation’s economy. adjourn/postpone/cancel the public auction without assigning any reason thereof.
.For more details please visit https://www.bajajhousingfinance.in/auction-notices
The author is member (health), NITI Date: 08/03/2023, Place:- Delhi Authorized Officer, (Pardeep Kumar) Bajaj Housing Finance Limited
Aayog. Views expressed are personal
8 WORLD
>
NEW DELHI | WEDNESDAY, 8 MARCH 2023

May need to raise rates higher and faster: Powell

TWO-YEAR US TREASURY YIELD JUMPS MORE THAN 7 BASIS POINTS AT 4.97 PER CENT, HIGHEST SINCE 2007
REUTERS
7 March
The Federal Reserve will likely need
to raise interest rates more than
expected in response to recent
strong data and is prepared to move
in larger steps if the "totality" of
incoming information suggests
tougher measures are needed to
control inflation, Fed Chair Jerome
Powell (pictured) told US law-
makers on Tuesday.
"The latest economic data have
come in stronger than expected,
which suggests that the ultimate
level of interest rates is likely to be
higher than previously antici-
pated," Powell said in prepared
remarks for a hearing before the
Senate Banking Committee.
The 2-year US Treasury yield
jumped as investors assessed com-
ments from the Fed Chair, accord-
ing to CNBC. The 2-year Treasury
yield jumped more than 7 basis
points at 4.97 per cent. Meanwhile,
the yield on the benchmark 10-year
Treasury was little changed at 3.989
per cent after briefly topping the 4
per cent level following Powell’s
remarks. Yields and prices have an
inverse relationship. One basis
point equals 0.01 per cent, CNBC
reported.
The remarks were his first since
inflation unexpectedly jumped in
January and the US government
reported an unusually large
increase in payroll jobs for that
month.
While some of that unexpected
economic strength may have been
due to warm weather and other sea-
sonal effects, Powell said the Fed
was cognisant it may also be a sign
the US central bank needs to do
more to temper inflation, perhaps
even returning to larger rate
increases than the quarter-percent-
age-point steps officials had been
planning to stick with.
“If the totality of the data were
to indicate that faster tightening is
warranted, we would be prepared
to increase the pace of rate hikes,"
Powell said.
The Fed will hold its next policy
meeting on March 21-22, with the
release this Friday of the govern-
ment's monthly jobs report and an
inflation report next week now crit-
ical in policymakers' judgment
about whether they are again slip-
ping behind the inflation curve, or
can stick with the more tempered
policy planned at their last meet-
IF THE TOTALITY OF THE DATA
WERE TO INDICATE THAT
FASTER TIGHTENING IS
WARRANTED, WE WOULD BE
PREPARED TO INCREASE THE PACE
OF RATE HIKES... ALTHOUGH
INFLATION HAS BEEN MODERATING
SINCE ITS PEAK LAST YEAR, THE
PROCESS OF GETTING INFLATION
BACK DOWN TO 2% HAS A LONG
WAY TO GO AND IS LIKELY TO BE
BUMPY... TO RESTORE PRICE
STABILITY, WE WILL NEED TO SEE
LOWER INFLATION IN THIS SECTOR,
AND THERE WILL VERY LIKELY BE
SOME SOFTENING IN LABOUR
MARKET CONDITIONS
JEROME POWELL
Fed Chair
ing. But in either case Powell's com-
ments mark a stark acknowledge-
ment that a "disinflationary pro-
cess" he spoke of repeatedly in a
February 1 news conference may
not be so smooth.
Although inflation "has been
moderating," since its peak last
year, Powell said, "the process of
getting inflation back down to 2 per
cent has a long way to go and is
likely to be bumpy." Members of the
Senate Banking Committee will
question Powell after he delivers his
testimony, with a similar hearing
scheduled before the House of
Representatives Financial Services
Committee on Wednesday.
Powell's testimony marked his
first public remarks on an issue now
at the center of Fed discussion as
officials weigh whether recent data
will prove to be a “blip,” as one of
his colleagues suggested, or be seen
as evidence the central bank needs
to lean on the economy even harder
than currently expected.
In his testimony, Powell noted
that much of the impact of the cen-
tral bank's monetary policy may
still be in the pipeline, with the
labor market still sustaining a 3.4
per cent unemployment rate not
seen since 1969, and strong wage
gains. In a comment that may well
be seized on by some Senate
Democrats, Powell suggested that
the labor market might have to
weaken for inflation to fall across
the broad services sector, a labor-
intensive part of the economy
where prices continue to rise.
"To restore price stability, we will
need to see lower inflation in this
sector, and there will very likely be
some softening in labor market
conditions," Powell said.
Powell's last monetary policy
report to Congress was in June,
which was early in what became the
most aggressive cycle of Fed rate
increases since the 1980s. That
monetary tightening has driven up
borrowing costs for home mort-
gages, a topic of particular sensitiv-
ity for elected officials, contributed
to volatility in traditional equity
markets as well as alternative assets
like cryptocurrencies, and sparked
some broader debates about the
Fed's efficacy.

IN BRIEF ASIAN VERSION OF NATO BOUND TO FAIL, SAYS CHINA’S FOREIGN MINSTER
Dhaka explosion: Xi Jinping's
At least 15 dead Conflict with America inevitable aide to be
Over 15 people were killed
and over 100 others injured
on Tuesday in a powerful
explosion at a seven-storey
building here in
have been found (so far) but
the toll could rise as the
rescue operation is
underway,” a fire service
official told reporters. The
unless they ‘hit the brakes’: China China’s next
Premier
Bangladesh's capital, police
said. Eleven firefighting units
cause of the explosion could
not be known immediately, OVERHAULS TECH, DATA REGIME TO COUNTER TO CUT NUMBER OF
have been mobilised at the
spot after the blast, which
but local residents suspected
chemicals illegally stored AMERICA; SETS UP NEW FINANCIAL REGULATOR GOVT EMPLOYEES BY 5%
occurred around 4.50 pm at inside the building, mostly
Old Dhaka's crowded Gulistan used as an office and
area, the fire service control
room said. “Fourteen bodies
business complex, might
have sparked the blast. PTI
AGENCIES
7 March
Germany to ban Jan-Feb trade slumps
Huawei, ZTE for
T on low global demand
he United States (US) should
Biden considers detaining change its “distorted” attitude
towards China or “conflict and 5G network parts Li was promoted as
migrants to manage surge confrontation” will follow, China's for-
eign minister said on Tuesday, while Germany plans to ban telecoms REUTERS
governor of Zhejiang in
2013 in the same year Xi
The Biden administration has held meetings to discuss deta— defending its stance on the war in operators from using certain Beijing, 7 March CHINA’S EXPORTS became president
ining migrant families who cross the border illegally, as officials
prepare to put in place border-control measures to counter an
Ukraine and defending its close ties
with Russia.
components made by Chinese
companies Huawei and ZTE in 5G China's exports for the January- CONTINUE TO DROP Xi Jinping has consolidated
expected surge in migrants, reported The Wall Street Journal, The US had been engaging in sup- networks, a government source February period fell, pointing to Figures in % YoY his power since the
according to people familiar with the discussions. AGENCIES pression and containment of China said, in a potentially significant continued weakness in foreign resignation of Premier Li
rather than engaging in fair, rule-based move to address security concerns. demand and backing government Keqiang, who had served
competition, Foreign Minister Qin The German ban could include concerns that a global slowdown will the maximum two terms
Atlassian to eliminate 500 Gang told a news conference on the
sidelines of an annual parliament
components already built into the
networks, requiring operators to
hamper the country's recovery from
pandemic-era damage. Imports
allowed. Li had been
sidelined in recent years by
jobs in latest IT cutbacks meeting in Beijing.
"The United States' perception and
remove and replace them, German
media had reported on Monday,
dropped, too, government data
showed on Tuesday, also reflecting
Xi, who elevated military
and security services in
Atlassian will cut 500 full-time employees, becoming the latest views of China are seriously distorted," citing sources. REUTERS weak foreign demand, since China support of the “great
software company to eliminate jobs. “We need to go further in said Qin, a trusted aide to President Xi brings in parts and materials from rejuvenation of the Chinese
rebalancing the skills we require to run faster at our company Jinping and until recently China's abroad for many of its exports. nation”. Now, all eyes are
priorities,” co-Chief Executive Officers Mike Cannon-Brookes ambassador in Washington. by forming “exclusive blocs” and is “Given the high inflation in the US Source: China's General Administration of Customs now on Li Qiang, who is the
Note: February 2023 data shows change in first two
and Scott Farquhar wrote in a memo to employees. BLOOMBERG "If the United States does not hit the bound to fail. The country granted a and Europe, demand from there months of the year favourite to replace Keqiang
brakes, and continues to speed down key ministry new powers and created a should keep weakening, which also as Premier. Li is a crony of
the wrong path, no amount of guard- bureau to oversee increasingly valuable dampens the processing demand in Xi’s from his days in
Japan’s H3 rocket fails, in rails can prevent derailment, which will
become conflict and confrontation,
data, shaking up oversight of its vast
technology arena as Xi Jinping’s admin-
China,” said Iris Pang, chief
economist for Greater China at ING.
5.5 per cent drop.
“The data came as a result of
provincial government,
having served as Xi's de

blow to space ambitions and who will bear the catastrophic con-
sequences?" US officials often speak of
establishing guardrails in the bilateral
relationship to prevent tensions from
escalating into crises.
He also attacked the US' Indo-Pacific
strategy, saying that it aims to “encircle”
China with a regional version of Nato
istration battles the US in areas from AI
to semiconductors. Also, the govern-
ment plans to cut five per cent of its
staff. China also plans to strengthen
oversight of its $60 trillion financial sys-
tem by setting up an enlarged national
regulator while taking some duties
away from the central bank.
Exports in the given period were
6.8 per cent lower than a year before,
after a 9.9 per cent annual fall seen in
December. Imports were 10.2 per cent
weaker, a worse result than in
December, when they were 7.5 per
cent lower than a year earlier. They
greatly missed the poll estimate for a
worsening global demand for goods,
given the fact that the export decline
facto chief of staff in
Zhejiang province. Li was
happened not only in China, but also promoted to governor of
among other major Asian exporters, Zhejiang in 2013 in the same
such as South Korea and Vietnam,” year Xi became president
said Xu Tianchen, economist and the and it automatically meant
Economist Intelligence Unit, he was being groomed for
referring to other recent data. bigger roles. AGENCIES

S&P cuts Nissan credit rating by a notch to junk

BLOOMBERG
7 March
Nissan Motor Co.’s credit rating was
slashed to junk by S&P Global
Ratings, the latest setback for a car-
maker that’s struggled to boost prof-
itability in the years following former
chairman Carlos Ghosn’s arrest and
the industry’s pivot toward electrifi-
cation.
The Japanese automaker’s credit
rating was cut by a notch to BB+ by
S&P, which said a strong recovery in
profit and sales was “unlikely” and
cited persistent supply chain turmoil
and high costs in the industry.
While Nissan recovered from two
Japan’s space agency intentionally destroyed a new H3 years of losses and is still targeting
rocket minutes after its launch Tuesday because the an operating profit of $2.7 billion for
ignition failed for the second stage of the country’s first the fiscal year ending this month,
new rocket series in more than two decades. Coming after there’s a dearth of new models to
an aborted launch due to a separate glitch, the failure was appeal to car buyers. A weaker yen in
a setback for Japan’s space program— and possibly for its late 2022 also helped boost income
missile detection program — and a disappointment for brought home, which made up for
space fans who were rooting for the retrial PHOTO: REUTERS production snags, but that advantage
is fading as the currency strengthens.
“Performance at the company has BB+ and BB from S&P, respectively.
been sluggish for more than three The cost to insure Nissan Motor’s
years,” S&P said in a statement. “We debt against default jumped after S&P
now expect its earnings will remain Global Ratings lowered the car-
weaker than we previously assumed maker’s credit rating to junk.
given the prospect of another difficult The outlook for the Japanese car-
year in 2023.” maker is stable, S&P said, citing that
The downgrade marks another profitability is gradually improving
blow for a carmaker that Ghosn and that the company is being con-
sought to turn into a global behemoth servative in its financial planning.
by expanding its alliance with The agency projected Nissan will
Renault SA and Mitsubishi Motors sell 3.6 million to 3.7 million cars in
Corp. to include other automakers. the fiscal year ending March 2024,
His 2018 arrest on charges of financial falling short of the 5.4 million units
misconduct ended those ambitions. targeted by the company’s in its long-
Instead, the partnership is reversing term business strategy.
course with the announcement last The rating agency said strong recovery in profit and sales was unlikely and S&P also said it will consider rais-
month that Renault will gradually cited persistent supply chain turmoil and high costs in the industry FILE PHOTO ing its rating if, over the next 12 to 18
reduce its stake in Nissan, leaving the months, Nissan can significantly
carmakers to fend for themselves. prices. its dollar-denominated note matur- improve sales and increase cash flow.
Nissan’s profitability will continue A junk rating means Nissan will ing in 2027 dropped 0.2 cents to 91.1 But its rating could be lowered, the
to lag behind its competitors for the have to pay higher costs to sell foreign cents on the dollar on Tuesday. It has agency said, if free operating cash
next one to two years, S&P added. The currency bonds abroad. While the fallen about ¥3 since the beginning flow becomes negative long-term, or
agency said it expects supply chain Yokohama-based company sold a of February. the company’s financial base is
issues to persist, delaying any recov- yen-denominated sustainability Japanese bond issuers with junk impacted by large strategic invest-
ery in sales across the US and Europe, bond in January, it last sold dollar ratings include SoftBank Group Corp. ments, or its market position falls
and pressure companies to lower and euro bonds in 2020. The price of and Rakuten Group Inc., which have further in North America or China.

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OPINION 9
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM

VOLUME XXIX NUMBER 239 ILLUSTRATION: BINAY SINHA

NEW DELHI | WEDNESDAY, 8 MARCH 2023

cent. Moreover, there is hardly any difference

High on promise between the cost of importing Urals by Indian refiner-
ies and the price of the Indian basket of crude oil.
The obvious question is whether the cost of trans-
Details of High Seas Treaty will have to be worked out portation and insurance for importing Russian Urals
could be so high as to completely neutralise the price

T
he United Nations-facilitated High Seas Treaty, agreed upon by nearly advantage. Or are there other factors responsible for
200 nations, has received wide acclaim as it fulfils the long-pending need the denial of an obvious price advantage to Indian
for a legally binding mechanism to conserve and utilise in a sustainable oil refineries? It is both a puzzle and a cause for con-
manner valuable marine resources that are under threat from indiscrim- cern that Russia today is India’s largest supplier of
inate anthropogenic activity, pollution, and climate change. It essentially envisages crude oil and yet, no refiner has as yet clarified why
setting apart about 30 per cent of the oceans outside the exclusive economic zones its landed cost of Russian crude oil is much higher
(EEZs) of the countries as protected areas by 2030 to allow them to recuperate. than its internationally-quoted sale price.
These marine zones would be akin to wildlife sanctuaries where any activity Unfortunately, such opacity also exists in the way
harmful to flora and fauna is prohibited. prices are determined in the oil sector. For instance,

The challenge
Such a measure has been deemed imperative because, going by the latest on paper, Indian oil refiners are free to fix the retail
prices of major products like petrol and diesel. But
assessment of the International Union for Conservation of Nature, about 10 per
in reality, these prices are often influenced by the
cent of all the marine species are at risk of extinction. Over 40 per cent of the threat-
government’s assessment and calculations. Thus,
ened species are particularly vulnerable to global warming. Over-fishing, increased even when the price of the Indian basket of crude

from Urals
shipping traffic, elevated salinity, pollution, and climate change, including oceanic oil fell from $116 a barrel in June 2022 to $78 in
heat waves, are among the major causes of loss of marine biodiversity. Whales, December 2022 and went up slightly to $83 a barrel
sharks, several types of shellfish, and a horde of other fish species are under pressure in March 2023, the retail prices of petroleum prod-
because of their growing demand for food and making drugs and various other ucts did not adequately reflect the decline in their
pharmaceutical products. crude oil cost.
At present, international waters (outside national jurisdictions), which con- India’s oil pricing policies must be fine-tuned to reflect the It was argued that the benefit of lower retail
stitute about two-thirds of the world’s oceans and almost half the planet, are open prices was not extended to consumers in an attempt
for unrestricted fishing, navigation, mining, research, or any other activity by new Russian reality to help refiners and marketers recoup some of the
anyone. Only around 1 per cent of these waters are under some kind of protection. past losses they incurred when they could not fully

W
Evidently, only large companies of developed countries have the capacity to exploit ith imports of Russian crude oil rising such supplies accounted for just about 1.4 per cent pass on the impact of higher crude oil prices. It
rapidly in the last few months, the contours of India’s total crude oil imports. In December 2022, would appear that the idea of a market-linked free
the genetic resources of these deep sea regions. Most of the developing countries
of India’s oil economy have altered in sig- the month up to which the latest Indian government retail pricing of petrol and diesel still remains only
are unable even to optimally tap the resources of their EEZs. The marine sanctuaries
nificant ways. However, these changes do not appear data on crude oil imports is available, the share of on paper!
established under the new treaty would put limits on fishing activities, delineate to have triggered a debate, as yet, within the gov- Russian Urals rose to about 28 per cent of India’s Equally important, how do the Indian refineries
shipping routes, and impose well-judged curbs on exploration works like mining, ernment and oil companies on how various existing total crude oil imports. explain why their processing cost saw no significant
particularly when these are undertaken in the seabed deeper than 200 metres pricing arrangements and systems should be adjust- This has substantially diversified India’s sources decline in spite of the rising share of Russian Urals
below the surface. The objective, obviously, is to avoid damage to fish-breeding ed to reflect the new reality. of procuring crude oil, compared to what they were in the total volume of the crude oil refined by them?
grounds and minimise the scope for pollution, including noise pollution, which Russia has now become the single-largest sup- a year ago. Policy experts will certainly see this as a Clarity on this issue is necessary to ascertain if the
can impair aquatic life. plier of crude oil to India, relegating Iraq, Saudi necessary enhancement of India’s energy security. refineries’ claims of continued under-recoveries
Notably, the High Seas Treaty provides for sharing marine genetic resources, Arabia and the United Arab Emirates A reduction in India’s dependence are justified.
including plants and animals, for food and commercial purposes but without to the second, third and fourth spots, on West Asia, which accounted for There is a larger question that India’s policy mak-
spelling out the modus operandi of doing so. It also moots regularly monitoring respectively. The United States, which about two-thirds of India’s total ers need to address. The price of the Indian basket
marine environments, especially in areas used for fishing, shipping, and mining. had inched up to the fourth position, crude oil imports, should be a wel- of crude oil is the basis on which retail prices of
Though the protracted negotiations leading to this accord were on the verge of is now only the fifth largest supplier of come development. What’s more, petrol and diesel are fixed by the refiners. Now, this
breaking down on several occasions over issues concerning fishing rights and crude oil to India. it was becoming clear that Russia’s basket is composed of the prices of only two types
The increase in the supplies of share in Indian crude oil imports of crude oil — sour grade (Oman and Dubai average)
funding, the rich nations are said to have finally consented to finance the imple-
Russian crude oil or Urals to India was not likely to decline in the nor- and sweet grade (Brent Dated). An average of these
mentation of various provisions of the pact. However, environmentalists, mindful began in the wake of the Ukraine- mal course. two varieties is worked out based on their use in the
of defaults in meeting the funding pledges for climate mitigation action, are sceptical Russia war that started in February But has this diversification also ratio of 75.62 and 24.38.
about the developed countries’ assurances for providing financial, scientific, and 2022. Sanctions against Russian oil by led to a reduction in India’s total Note that there is no mention of Russian crude
technical support for maintaining the ecological health of the oceans. Consequently, the US and European countries meant cost of procuring crude oil? oil or Urals in such calculations. It is true that the
many of these activists consider this agreement the basic framework for the preser- that Urals had to look for alternative Remember that Russian Urals cost Russian Urals became the single largest variety of
vation of marine ecosystems, leaving the precise modalities to be worked out later. markets. For India, this was an oppor- RAISINA HILL 20-30 per cent less than the price crude oil in India’s import basket only in the last
But it is undisputedly a momentous step forward in safeguarding and strengthening tunity as the price of Urals was reported of the Indian basket of crude oil. one year. But isn’t it time for rejigging the way the
the blue economy, which is set to play a significant role in environmentally safe to be 20-30 per cent lower than that of A K BHATTACHARYA Expectations of Indian refineries price of the Indian basket of crude oil is arrived at?
economic development in future. the Indian basket of crude oil. India took benefitting from a reduction in the Ideally, this should be a dynamic basket, reflecting
full advantage of the situation with smart diplomatic imported cost of crude oil, therefore, were quite the evolving composition of crude oil varieties that
initiatives — increasing oil supplies from Russia high. That hope, however, has been dashed, as the Indian refineries import for processing.

Free and fair even as it tactfully avoided any retaliatory action latest government data on imports shows.
from the West for ignoring the sanctions. The fact is that India’s cost of importing Russian
How has India benefitted by securing a larger crude oil has been consistently higher than the pre-
Oil pricing reforms should always be high on the
government’s agenda. Indeed they should be even
higher on the agenda when a major development
Law must establish Election Commission’s independence share of its crude oil supplies from Russia? In March vailing international price of Urals by a substantial such as Russia emerging as the single-largest sup-
2022, when India began importing Russian Urals, margin — ranging from 11 per cent to over 50 per plier of crude oil has taken place.

A
five-judge Constitution Bench of the Supreme Court (SC) last week
unanimously ruled on what was often considered a “constitutional
vacuum”. But the approach adopted by the court will not address the
basic issue and can be seen only as an interim measure. The court has
ruled that appointment of the chief election commissioner (CEC) and election
commissioners (ECs) shall be made by the President of India on the basis of
advice rendered by a committee comprising the Prime Minister, the Leader of
Tono-Bungay enterprise
F
rom my IBM 360 software training days, I decline of company leaders (not listening, obsessed Leaders in all domains are prone to such frailties.
the Opposition in the Lok Sabha (in case there is no Leader of the Opposition,
recall Brooks Law, attributed to Fred Brooks with publicity, personal ego, lack of compassion). Former US President Barack Obama had said that
then the Leader of the largest Opposition party in the House) and the Chief
of IBM. It stated that just deploying more engi- Among many factors, complexity and cronyism political leadership has too often become about
Justice of India. The appointments thus far were made by the President on the neers at software development may not get the work promote fraud. being more aggressive (https://obamawhitehouse.
advice of the Prime Minister. done any faster. The remark became more colourful The book describes the dramatic rise of GE up to archives. gov). “Much of what is trotted out as lead-
There is no dispute that the Election Commission should be independent with time —Russian economist Grigory Yavlinsky’s the late 1990s, and its precipitous decline in the ership today is just old-style beating your chest and
and free from any influence of the executive. This is an absolute necessity for statement, for example, that you cannot put nine 2000s. It is riddled with saucy and memorable anec- being louder and more self-centered,” he said. Chest
having free and fair elections, both at the national and state levels. There has pregnant women in a room and expect the babies dotes: How the CEO in recent decades would fly in beating is common among gorillas which seek to
been concern in different sections of civil society that the existing process of in one month! Brooks Law is true for building and one company jet, while a second jet flew in tow, as a communicate their size to scare off competitors.
appointing the CEC and ECs can potentially undermine the independence of nurturing SHE (sustainable, honest, enlightened) back-up; and how an assistant flew in advance to Psychologically secure and great leaders fight
the Election Commission. Although the Election Commission has been manned enterprise as well. Enterprise is essential for human the hotel to set up the personal gymnasium equip- lonely battles against opponents, for example,
by people of impeccable credentials over the years, which enabled a number of progress. Yet, society is deeply suspicious, especially ment of the CEO. Currently, an ongoing Deutsche Mahatma Gandhi, Nelson Mandela, and Abraham
reforms and made elections more credible, it is also true that political parties in of quick-fix enterprise. What may be the remedy? Bank probe into mis-selling of risky foreign exchange Lincoln. Such leaders fight their battles by talking
recent years have raised concern over its conduct. In any case, the appointment An article in Strategy+Business magazine revived derivatives shows that some bank staff acted with to their opponents, perhaps even embracing them,
memories of HG Wells’ satirical novel, bad intent and disingenuously. but not by boasting that they fight alone.
of the CEC and ECs on the advice of the Prime Minister or the Cabinet was not
Tono-Bungay, written in 1908 when the Customers were taken in by the How can leaders reduce the probability of aber-
entirely in the spirit of what the Constitution or the Constituent Assembly had
robber barons were being denounced sales pitch for an incomprehensi- rant behaviour? Traditional Indian wisdom may
envisaged. This was also an interim measure. in Teddy Roosevelt’s America while ble instrument. Trusting cus- offer a solution — good business is accomplished
The court judgment has in detail analysed the Constituent Assembly debates Victorian England was booming. It is a tomers perhaps ignored the sage through four leadership actions: Develop self-
in this context. Article 324(2) of the Constitution states: “The Election Commission mordant satire on a greedy uncle- advice —if you don’t understand awareness, protect the resources that enable busi-
shall consist of the Chief Election Commissioner and such number of other nephew duo that launched a fraudulent something, don’t engage. ness, serve others, and display compassion towards
Election Commissioners… the appointment of the Chief Election Commissioner elixir branded Tono-Bungay. In those Complexity is the enemy of stakeholders. All the principles of ESG, climate
and other Election Commissioners shall, subject to the provisions of any law days, they did not intellectualise long-term success. Although GE’s action, SDG, and humanism are captured by
made in that behalf by Parliament, be made by the President.” Since Parliament whether it was a con or bad manage- financial doings in the early 2000s vasudeiva kutumbakam. Humanistic management
has not made the law in all these years, the appointments are being made by the ment! After dramatic early success, were incomprehensible, nobody is a people-oriented management that seeks profits
President on the advice of the Prime Minister. Talking about the background of sense dawned that the product was a
con, indeed harmful.
THE WISE LEADER dared to criticise the mighty GE.
Whether in India or abroad,
for human ends. People are not seen as mere
resources to serve a profit goal. Genuine humanism
the relevant Article, the judgment noted that the founding fathers did not intend
“... the executive exclusively calling the shots in the matter of appointments to The world always had, and will R GOPALAKRISHNAN mighty firms respond to criticism embraces: (i) wholeness, (ii) comprehensive knowl-
the Election Commission”. continue to have “entrepreneur lions, with aggression. If what a compa- edge, (iii) human dignity, (iv) development, (v)
who devour everything greedily and quickly”. ny is doing is incomprehensible to reasonably skilled common good, (vi) transcendence, and (vii) stew-
However, since the issue is of the independence of the Election Commission,
However, in due course, the ageing lion dies mis- professionals, then it is a signal for caution, if not ardship-sustainability.
the committee established by the court to advise the President on appointments erably, just like get-rich-quick entrepreneurs and alarm. Reflect on FTX, Enron, Theranos, 1Mdb, and At a Yuva Parivartan event at Mumbai in
would not make much difference. The director of the Central Bureau of leaders. There are two lessons from Tono-Bungay: the Robert Maxwell empire, among overseas com- February Nobel awardee Kailash Satyarthi passion-
Investigation, for example, is appointed by a similar panel, but the institution is First, that success in entrepreneurship produces panies; think of IL&FS, ABG Shipyard, NSE coloca- ately exhorted the audience to elevate vasudaiva
regularly under attack for its conduct. In fact, entering the process of appointing unexpected side effects, and second, sans integrity, tion, and some contemporary Indian cases. kutumbakam from an Indian slogan to be the basis
the CEC and ECs would mean that criticism would be directed at the highest entrepreneurship is doomed. Today, as in the days Cronyism is nurtured by the unholy union of for a movement to “globalise compassion.” It is an
court also. The appropriate solution thus is to bring a comprehensive law as of HG Wells, the dilemma is that society needs political power and entrepreneurial greed, like the intriguing concept that needs further development.
envisaged by the Constituent Assembly for the appointment of the CEC and aggressive entrepreneurs, but not entrepreneurs battle that Teddy Roosevelt fought over a century Indian enterprises can be the beacons of a new form
ECs, along with establishing other aspects of the Election Commission’s inde- who undertake spiralling risks, unfettered by ethics ago. We still encounter cronyism, as exemplified by of enlightened capitalism, first within India, and
pendence. It is important to note in this context that the law should not simply or nous. The authors of Lessons from the Titans the much-chronicled stories of Eike Batista in Brazil, thereafter, in the world. This is a worthwhile idea.
extend the powers of the executive. It will be critical that the law establishes the draw well-known and general lessons about what Yevgeny Prigozhin in Russia, and several in India
independence of the Election Commission beyond doubt. causes the downfall of company managements from the 1950s LIC-Haridas Mundhra matter right The writer is an author and a business commentator.
(complacency, arrogance, complexity) and the into modern times. www.themindworks.me; rgopal@themindworks.me

Vivekananda as universalist In her choice of this daunting shift to a

profundity of certain policies. Maybe it was
decided that it is now time to promote the
idea of the supremacy of Hinduism, the
conclusion emerged.
Over the past decade, there have been a
few instances when foreign writers were
BOOK REVIEW contacted and solicited to write a book for
NILANJAN MUKHOPADHYAY which access in the “right” quarters was
ensured. Because this has happened in the
past, the question arose if this too was one
Ramakrishna Mission, in my grandfather’s
presence, was about the pre-teenager
Narendranath’s disregard for the caste
order. Today, however, one hears of this
rarely, deafened as one is by assertions that
project Vivekananada’s address to the
Parliament of the World’s Religions at
Chicago in 1893 as an epochal “victory”.
The tale that was narrated in the early
1970s, probably to other pre-teenagers too,
different political and intellectual terrain,
Ruth Harris left friends, colleagues and
well-wishers dismayed over the reasons for
leaving “behind three decades of work in
French and European history to plunge
into a study of Indian religion and the
Atlantic world.” As she recreated
Vivekananda’s return in 1897 via Colombo
as a “conquering hero” after “crisscrossing
the Western world” in
the course of which he
unflinchingly put
across the “value of
Narendra Modi regularly respectfully refer
to Vivekananda in his speeches and social
media posts, but he also “does his utmost to
mold his image to fit that of Vivekananda,
while linking himself and Hindu
nationalism to the swami.” The author is
aware that Vivekananda’s “broad vision,
especially in his own times, have been
obscured” because of the conscious
decision of the Bharatiya Janata Party to
“bind Hinduism”
Guru to the World: closely to the party’s
The Life and Legacy of “definition of Indian
Vivekananda identity and destiny.”
Ramakrishna Paramahans, who enabled
the swami to overcome his disdain for
several traditions and get the courage and
knowledge to reinterpret past beliefs. The
second part of the book examines
Vivekananda’s visits, exposures and
interactions in the West, the people he met
and how the relationships evolved. The
third part of the book, detailing
Vivekananda’s relationship with Margaret
Noble or Sister Nivedita, is the most
poignant section. While Vivekananda was
Ramakrishna’s favourite “son”, Noble was
his Western “daughter”.

T
he path to knowledge often
originates from a state of ignorance.
The primary title of this book —
Guru to the World — sounded
unambiguously Vishwaguru-ish, a word
dropped ad nauseam in recent years to
create the illusion of imminent and
unparalleled enhancement of India’s
global influence. Consequently, when this
reviewer first learnt of this book, it got
automatically framed within the context of
Vivekananda being appropriated by the
Hindu right wing. It naturally was seen as
yet another effort of the political
bandwagon that enlisted writers and
scholars of repute or otherwise, to promote
exceptionality of certain individuals and
of those “commissioned” books? Such
categorisation also stemmed from my lack
of intimate awareness about the author’s
work as a historian. I was somewhat aware
about her decades-long engagement with
European history but was unaware that her
interest had taken a turn towards Asia in
recent years.
Few Indians growing up in the middle-
class milieu, intelligentsia or otherwise,
escape Swami Vivekananda’s towering
presence in conversations. What they hear
or perceive depends on the specific
orientation or character of the people or
group who introduce the child to the idea s
of the monk. It was no different for me; the
first tale narrated at Varanasi’s
emphasised Vivekananda’s reformist
streak from childhood essentially to
convey that there was much in Hinduism
that needed to be made more humane,
although this streak he forsook later by his
“robust defence of caste”. In time, the cause
of pride in his achievements morphed into
appreciation of Vivekananda’s intellectual
valour as an embodiment of Indian
nationalism, to wow the West through the
intellectual frame of Hindu spiritualism.
In a way, many would even consider
Vivekananda to be first ambassador of a
Hindu Samrajya or Empire that in the
mind of a significant number of Hindus is
an objective and certainly a possibility in
near future.
Hinduism and Indian
thought”, the initial
apprehensions
regarding the book
appeared not ill-
founded. But while
recognising that
Vivekananda is
considered not just one of “India’s
‘fathers’”, but also “true rock star” who was
the first to tell the “civilisational story of
India”, the author immediately put on
record her understanding that
Vivekananda’s “nationalism was balanced
by powerful universalist and idealist
values.” Fairly early on, Ms Harris notes
that not only does Prime Minister
Author: Ruth Harris The book succeeds in The chapter titled “Education, ‘Divine
Publisher: Harvard the attempt to “restore Play,’ and the Nation” examines the
University Press an understanding of complex and multi-layered relationship
Pages: 539 Vivekananda’s between Vivekananda and Nivedita, the
Price: ~799 complexity”. She role she played, especially after his death.
minces no words in This section also delves into how Noble
writing that “making a thought of her and Vivekananda and the
direct link between love she felt for him. The book’s success lies
the swami and the current politics of in presenting Vivekananda to readers not
Hindu nationalism is both reductive and as an insular and uni-dimensional person.
dangerously (sic) misleading.” In fact, she The book could not have been written at a
argues that the seer was not just a “shaper better time in India’s history.
of a reinvigorated Indian self-identity” and
provides evidence towards this repeatedly. The reviewer is an NCR-based author and
The book is neatly divided into three journalist. His latest book is The Demolition and
segments. The first part explores the the Verdict: Ayodhya and the Project to
relationship between Vivekananda and Reconfigure India
10
>
NEW DELHI | WEDNESDAY, 8 MARCH 2023 1
.
NEW DELHI | WEDNESDAY, 8 MARCH 2023 11
<
 QUICK TAKE: REGULATORY OVERHANG FOR SOBHA “Firms with a higher proportion of women in

The Smart management outperformed those with

Investor
Stock price in ~ 600 The stock of real estate major Sobha is down 4.5 per a lower proportion by 26 per cent
585.3 590 over a five-year period. They also
cent from its highs in February. Despite the
580 outperformed the benchmark
improving operational performance in terms of sales
NEW DELHI | 570 and cash generation, the ongoing regulatory issues
index and had higher RoE”
WEDNESDAY, 8 MARCH 2023 560 have weighed on stock performance, says Kotak GIRISH NAIR
564.5 550
Securities, which has a ‘buy’ rating on the stock Co-Head ESG Research,
Feb 1,’23 Mar 6,’23
BofA Asia Pacific
<

Will it be a ‘no’ for YES Bank? Female employment

gap in India affects
Share lock-in ends March 13 CFA gender mix
Passive trackers may sell 67 mn shares; another 1.35 bn could be offloaded by individual investors
SAMIE MODAK
ILLUSTRATION: BINAY SINHA
Fewer women stay in the FAR BEHIND THE WORLD
Mumbai, 7 March BREAKING FREE workforce amid social India has a lower share of women
ETFS COULD MAKE A DASH TO EXIT …BUT IT REMAINS TO BE SEEN WHAT pressures, lack of pay parity charterholders than the global share
S
hares of YES Bank could witness
downward pressure as exchange IMMEDIATELY… THE BIGGEST SHAREHOLDERS WILL DO GLOBAL INDIA
traded funds (ETFs) and individ- n Shares held (in mn) Lenders Shares held (in mn) SACHIN P MAMPATTA
23.67 13
ual investors make a dash for exit as Mumbai, 7 March
soon as the forced lock-in period ends State Bank of India 6,050 Female
20
on March 13. 11.99 HDFC Banks 1,000 Women remain one of the most underutilised Female
These investors held stakes in the 10.56 business resources. Even as women in finance
ICICI Bank 1,000 80 87
bank before the reconstruction 6.72 are now chipping away at the glass ceiling, the (%) Male (%) Male
scheme, which imposed a three-year 5.89 Axis Bank 600 share of women who complete the three-level
lock-in on 75 per cent or nearly 11 bil- Kotal Mahindra Bank 500 chartered financial analyst (CFA) exam —
lion shares held by existing investors. regarded as the gold standard in investment
Federal Bank 300
Prior to its recapitalisation plan, the management globally — is just 13 per cent
SBI ETF
Nifty 50

Kotak Nifty
Bank ETF

Nippon India
ETF Bank BeES

private sector lender was a member of
the widely-tracked Nifty and Bank
Nifty indices.
The stock was deleted from the
Nifty and the Bank Nifty index on
February 18, 2020. But the change was
to become effective from March 27 that
year.
Hence, ETF trackers were required
to sell the stock only on March 26,
2020. But before the trackers could do
that, the three-year lock-in period
kicked in on March 13, 2020 and forced
them to hold onto these shares even
as YES Bank was no longer part of the
two indices.
“We estimate that there are at least
67 million shares of YES Bank that are
held by these trackers. It’s likely that
they will sell them as early as possible,”
said analyst Brian Freitas of Periscope
THE COMPASS
Analytics, who publishes on
Smartkarma.
ETFs are not required to hold on to
shares that are no longer part of their
underlying index.
SBI ETF Nifty 50, Kotak Nifty Bank
ETF and Nippon India ETF Bank BeES
are the top three ETFs holding YES
Bank shares due to the lock-in. It
remains to be seen as to how the fund
houses go about it. Typically, in such
cases, ETFs write off the investment
or create a side-pocket if there is a
scope for realisation of value in the
future.
Besides ETFs, individual investors
SBI ETF
Nifty Bank
UTI Nifty
50 ETF
Bandhan Bank 300 in India.
IDFC First Bank 250 It is 20 per cent globally, reveals comparative WIDENING GAP AT HIGHER
Source: Smartkarma
data that the CFA Institute shared in response CANDIDATE LEVELS
to a request from Business Standard ahead of
Share (%)
International Women’s Day on March 8.
— retail, high net worth individuals, shares on which there was no lock-in. The divergence is less pronounced at lower Male Female
and NRIs — hold 1.35 billion shares of “With YES Bank stock trading levels of candidature. Women account for 27 100
Yes Bank that are under lock in. “Even nearly 70 per cent higher than their per cent of CFA Level I candidates. This falls 6 79 78
73 72
if they sell just 20 per cent of their purchase price, some banks will look percentage points to 21 per cent by CFA Level 80
locked-up stock, that is over 5 days of to unwind their stake (partially or ful- III. The share of men, however, goes up from
delivery volume,” highlights Freitas. ly). If all banks look to sell their stake, 73 per cent to 79 per cent. 60
Shares of YES Bank last closed at the number would be near 11 billion Around 22 per cent of the candidates who
~16.9. Big shareholders of YES Bank shares (worth ~18,590 crore),” said pass CFA Level III are women. This should
shares are eight financial institutions, Freitas. ideally raise India’s level to near global stan-
40
led by state-owned State Bank of India Despite the ensuing selling pres- dards on diversity, but not everyone who
(SBI), who had come in as part of the sure, the stock has managed to hold passes the last level goes on to become a 20
recapitalisation exercise in March its ground over the past one month. charter holder. 27 28 22
2020. Shares were allotted to them at Experts say, as YES Bank is not part of A charter is given to those who pass the
21
0
~10 apiece. the futures and options (F&O) seg- test and gain the requisite 4,000 hours of work Level I Level II Level III Level III (passed)
Some of the lenders have already ment, there is no prior positioning by experience. The share of women holding the Source: CFA Institute
disposed a portion of their 25 per cent short-sellers in the counter. charter drops to around a tenth of the overall
number. The share of men accordingly rises This female labour force participation rate
to around 90 per cent. was 23 per cent for India in 2021, shows World
There are around 170,000 members Bank data, compared to a global figure of 47
MFs, AMCs get more time to globally. India has 3,500 members. The rea- per cent. It was higher in Brazil (52 per cent),
sons for a skewed gender mix include a lack Russia (55.3 per cent), and China (61.3 per cent).
apply for forensic auditors of pay parity at higher levels in companies, Most developed countries also have higher

Concerns seem to be built into Markets regulator Securities

and Exchange Board of India
revised date for submission of
application is March 31, 2023,”
with many women dropping out due to per-
sonal goals like migration, matrimony, and
motherhood.
female labour force participation rates. It is
55.6 per cent in the US and 58.3 per cent in
the UK.

Indus Towers stock price (Sebi) on Tuesday extended

DEVANGSHU DATTA
Telecom infrastructure player Indus Towers
has been largely ignored by investors with
occasional bursts of trading when there’s news
flow. For example, the stock fell from ~188 (Jan
1, 2023) to ~135 (Jan 27) and then bounced back
to ~165 in early February as the Government
of India (GoI) converted Vodafone Idea’s (Vi’s)
debt into equity and Bharti Airtel pushed up
its direct stake in Indus to 47.95 per cent.
The cash-strapped Vi holds 21 per cent
stake in Indus Towers and Indus
also has substantial receivables
to come in from Vi which is a
negative overhang. The GoI
action in rescuing Vi has led to
hopes that the firm would find
the wherewithal to clear some
dues.
Analysts have steadily down-
graded the company valuations.
Indus Towers reported a
sequentially weak performance
for the third quarter of the 2022-
23 financial year (Q3FY23). It
reported a decline in revenue of
15.1 per cent quarter-on-quarter
(QoQ), as Q2FY23 revenue also included ~1,100
crore of deferred revenue. There was also a big
sequential decline in Ebitda (earnings before
interest, tax, depreciation and amortisation)
margin (down 1,777 basis points or bps QoQ)
and a large provision for doubtful debts.
Adjusted revenue (excluding deferred rev-
enue of Q2FY23) declined by 1.5 per cent QoQ
to ~6,765 crore and the Ebitda margin dropped
to 17.5 per cent from around 35 per cent in
Q2FY23, due to higher other expenses, includ-
ing the provision for doubtful debts of ~2,270
crore. This new provision is in addition to an
earlier ~1,770 crore debt provision created in
Q2FY23.
On the operational side, the total number
of towers grew by 0.8 per cent QoQ to 189,392
and total colocations grew by 0.4 per cent QoQ
time till March-end for sub-
mission of applications for
the capital markets regulator
said in a public notice.
On February 11, the Sebi
The CFA Institute is attempting to bridge
this gap through a mentorship programme for
women and encouraging policies to ensure
Several reasons exist for lower participa-
tion, including social preferences for getting
women to stay at home as household income
to 339,435. The capex for Q3 was at ~1,037 crore empanelment of forensic had invited applications from greater diversity, equity, and inclusion. grows, according to a 2014 International
vs ~794 crore for Q2FY23. Net debt (with lease auditors for mutual funds, eligible firms for empanel- This could help address participation and Labour Organisation note titled, Women’s
liabilities) decreased to ~19,470 crore from asset management com- ment of forensic auditors for parity issues higher up the organisational hier- Labour Force Participation in India: Why Is It
~19,980 crore in Q2FY23. The bottomlline was panies (AMCs) and trustee MFs, their AMCs and trustee archy in firms, where there are fewer women So Low?
a loss of ~708 crore for Q3, versus ~871 crore entities. companies. and the pay is often unequal. “...much of the discussion on the falling
profit after tax (PAT) for Q2. However, PAT Earlier, the interested After being empanelled, “The problem arises especially at senior trends has focused on four key explanations:
(normalised by excluding provisions) grew 4.4 entities were required to sub- the auditors would take up levels,” says Arati Porwal, country head, CFA rising educational enrolment of young
per cent YoY and 3.3 per cent QoQ. mit applications by March 6. assignments related to foren- Institute India. women, lack of employment opportunities,
Although reforms are expected to drive “It has been decided to sic audit of mutual funds, their A smaller share of India’s women over the the effect of household income on participa-
tower and colocation addition, and 5G rollout extend the last date for sub- AMCs and trustee companies age of 15 are economically active than in many tion, and measurement,” reads the report from
would drive the addition of small cells, the mission of application and the or board of trustees. PTI peer economies. author Sher Verick.
financials remain a question mark in the
medium term. Revenue CAGR
(compound annual growth rate)
could be quite low at 2 per cent
with an average Ebit (earnings
before interest and tax) margin
FPIs low on finance stocks, red-hot on
services sector in second fortnight of Feb
of 22 per cent.
The salient Q3 management
guidance was as follows:
Around 50,000 5G Base
Transceiver Stations (BTS) have SUNDAR SETHURAMAN
been installed by Indian tele- Mumbai, 7 March FOREIGN HAND
com operators so far.
Core revenue from rentals, Financial services and consumer
though, is down 5.5 per cent YoY durables companies accounted for
Inflows Outflows
due to discount on renewals most of the selling by foreign portfolio (~ crore) (~ crore)
and optimisation of locations. investors (FPI) during the last fortnight
n Services 2,250 n Financial services -2,263
Management is in “active talks” to resolve the of February. FPIs sold finance stocks
receivables issue. worth ~2,263 crore and consumer n Oil & gas 1,290 n Consumer durables -1,111
Positive news flow going forward would be durable stocks worth ~1,111 crore, n Capital goods 1,155 n IT -708
clearing of the receivables, which would according to data collated by Prime
immediately add back to the bottomline. Infobase. n Construction materials 385 n Metals & mining -694
However conservative analysts have cut Ebitda Information technology (IT) (~708 n Construction 326 n Power -497
projections for FY23 and FY24 to factor in the crore), metals & mining (~694 crore),
Note: Data for second half of February 2023 Source: Primeinfobase.com
provision for bad debt. A stake sale by Vi is and power (~497 crore) were the other
also a possibility. sectors where the overseas investors construction material and construc- "Overall, overseas investors are still sector at 10.20 per cent are the other
Discounted cash flow valuations estimates sold most. tion space also saw cumulative buying taking money out. The IT and financial sectors with high FPI allocation.
are between ~170 and ~190 from various ana- On the other hand, firms that worth nearly ~700 crore. sectors gave them an opportunity to The buying in oil and gas stocks
lysts. The lower estimates assume telecom ser- accounted for highest inflows by the Overall, FPIs’ selling was muted at exit with some profit or without much was attributed to the positive demand
vices will reduce to a duopoly. There are risks FPIs during the same period were in less than ~486 crore during the 14-day losses," said G Chokkalingam, founder outlook on the back of the China-reo-
due to the weak growth and high capex the services sector, followed by energy period of February. of Equinomics. pening. Expansion in the Indian serv-
demands, apart from Vi-related issues. and capital goods. Outflows from the financial and IT Despite the selling, the highest sec- ices sector has made FPIs bullish.
Are all the risks already built into the price FPIs bought shares of services firms sector — two of India’s largest in terms toral allocation as of February end was The S&P Global India Services
at current levels of ~167? The contrarians and worth ~2,250 crore, energy companies of market capitalisation — indicate to financial services at 33.81 per cent Purchasing Managers' Index rose from
optimists would hope so. worth ~1,290 crore and capital goods that FPIs remain in ‘sell’ mode, said from 33.77 per cent. 57.2 in January to 59.4 in February, its
stocks worth ~1,155 crore. Firms in the experts. IT at 11.57 per cent and the oil & gas highest since February 2011.

Inadequate savings could jeopardise women’s retirement

Not allocating adequately to equities, which can
potentially beat inflation, is another error to avoid
BINDISHA SARANG
Seema Chetri (name changed on
request), 54, holds a PhD in engineering
sciences. This Mumbai-based professor
teaches at one of the country’s top
technology institutes and has
authored several engineering
textbooks. And yet, like
millions of well-educated
Indian women, she entrusts
her finances to someone else.
Chetri says, “When I was
younger, my salary and savings
were managed by my father-in- YOUR
law, an office clerk. Later, my
husband, who was in the
MONEY
paramilitary services, took over. Now,
my 30-year-old son, a fashion designer,
handles my finances. Despite being
neither dull nor incompetent, I have
never taken charge of my own money.”
Chetri represents millions of Indian
women who avoid the responsibility of
managing their finances due to a variety
of reasons, including cultural and social
conditioning. In many households, men
have traditionally assumed the role of
financial decision-makers.
Mrin Aggarwal, founder
director, Finsafe India, says,
“Due to time constraints and
lack of knowledge, women tend
to put money management
way down on their priority list.
The combination of
information overload and a
lack of financial discussions in
their growing up years further
exacerbates their uncertainty about
handling their finances.”
Financial planners say that the
minority that does handle its finances
tends to make several costly mistakes.
THE LOAN ADVANTAGE
n A recent CIBIL survey
showed that women,
on an average, tend to
be better borrowers,
and hence exhibit
better credit profiles
Retirement woes
Although women are typically skilled at
saving money, they often struggle with
retirement planning. Priti Rathi Gupta,
managing director (MD) & founder,
LXME, says, “Our survey shows only 2
per cent of women save for retirement.
Data show that women retire with one-
tenth the corpus that men do, all other
things like educational qualification, job
designation, etc. remaining the same.”
Remember Indian women have a longer
average life span than men.
The disparity in retirement savings
between men and women can be
by us, only 16 per cent of women invest hurry, under the pretext of a cut-off date
their money in financial instruments. for these investments.”
About 65 per cent put the money in Many women fall for such get-rich-
n Many lenders n In many n Some lenders savings accounts while 37 per cent keep it quickschemes and take out personal
offer home states, the offer education at home for emergencies.” loans at interest rates as high as 20 per
loans to women stamp loans to women Inflation has averaged 7.5 per cent in cent to make equity investments.
the past 42 years. Aggarwal says, “Your Billimoria flags the potential dangers
at lower rates of duty rate is borrowers
money is not growing if your of this approach: “What if the returns
interest than lower for at lower
investments don’t beat inflation.” She don’t cover even the interest on the
to men women interest rates recommends that women consider loan? Worse still, what if the returns
exiting those investments that are not are negative?”
attributed to several factors — such as yielding over 7 per cent per annum over These women not only risk losing
gender pay gap, differences in career the long run and reinvest in equity their principal but also face the added
trajectories, and a lack of awareness products that can offer better returns. burden of high interest rates. Billimoria
about the significance of saving for emphasises the importance of never
retirement. Gupta suggests, “If your Leveraged bets borrowing to invest in the equity market.
spouse earns more money than you, let Women often have to take career breaks Aggarwal suggests a safer alternative.
him contribute to most of the expenses to tend to family responsibilities. This “Consider equity mutual funds which
so that you can save and invest a causes them to lag financially. Some try are professionally managed and also
percentage of your income.” to catch up. Dilshad Billimoria, board
member, Association of Registered
offer tax advantages. Even a simple Nifty
50 index fund will do, provided you stay
Beaten by inflation Investment Advisors (ARIA), says, invested for the long term.”
A significant number of women are “Many are enticed by the promise of This Women’s Day resolve to either
hesitant to invest in financial double digit returns made by providers enhance your knowledge of money
instruments that can outpace inflation. of stock tips. Such brokers or agents get management or enlist a financial
Gupta says, “According to a survey done investors to commit large amounts in a planner’s help.
.
NEW DELHI | WEDNESDAY, 8 MARCH 2023 DIVIDEND PLAY 13 <

10 stocks to hedge against share price volatility

Equity markets have been on a roller-coaster ride over the past year. At such times, investors can look at firms that pay
generous dividends, which can become a second income, report KRISHNA KANT & RAM PRASAD SAHU

E
quity dividends are the least appreciated Investment for equity dividend is also a good ranging from a low of 3.1 per cent in the case of
aspect of investing in stocks, but a way to hedge one’s equity portfolio from the ITC to a high of 7.7 per cent in the case of Coal
portfolio that consists of high dividend price volatility of shares. For example, the India. In comparison, the BSE Sensex currently
paying companies is a great way to ensure a benchmark BSE Sensex has been range bound in offers a dividend yield of 1.2 per cent.
steady stream of income. the last one-and-a-half years, All 10 stocks reported growth
Besides, this is over and above the capital which has translated into poor in net profit and net sales in the
appreciation that one gets from equities. If the capital returns for most trailing 12-month (TTM) period
portfolio is big enough, the annual dividend diversified equity portfolios. But THESE STOCKS OFFER ended December. This means,
income can become a good source of passive or many companies continue to pay DIVIDEND YIELDS investors can expect higher
secondary income for the investor. generous dividends with yields payout in FY23 than in FY22.
Companies that pay dividends also tend to matching or even higher than the
RANGING FROM A These companies also have
have a superior balance sheet and are often more interest on bank fixed deposits. LOW OF 3.1 PER strong balance sheets with little
profitable and generate more cash flows from However, big dividend CENT TO A HIGH OF or no debt and high return on
operations than their peers that pay little or no payouts weigh on a company’s 7.7 PER CENT. BY equity (RoE). The latest RoE for
dividend. Hindustan Zinc (HZL) — the top share price and become self- these companies ranges from 23
dividend paying company in the metals and defeating if payouts are not COMPARISON, THE per cent in case of Redington to
mining space — is the most consistent performer financially sustainable and hurt BSE SENSEX 52 per cent for Coal India, based
on the bourses and its stock price the company’s ability to invest in CURRENTLY OFFERS on their TTM net profit and net
has outperformed most of its peers in the expansion. This is why it’s worth at the end of H1FY23. This
longer term. important to invest in companies
A DIVIDEND YIELD is at least 50 per cent higher than
That is also the case with the other where the dividend payout keeps OF 1.2 PER CENT the Sensex companies’ average
companies in Business Standard’s list such as pace with its earnings growth. RoE of around 15 per cent.
ITC, Bata India, Bayer CropScience, Petronet Here are 10 high dividend These stocks have been
LNG, and AkzoNobel, among others. In other paying stocks across sectors that are expected to selected from the BSE 500 universe based on
words, a good dividend paying company offers maintain or even increase their pay-outs in their relative rank on financial parameters
the best of both worlds — a steady appreciation FY23 thanks to faster earnings growth in the last such as dividend yield, RoE and revenue,
in the initial capital and an annual income in the four quarters. operating profit and net profit growth in the
form of dividend. These stocks currently offer dividend yields TTM period.
ILLUSTRATION: BINAY SINHA

Coal India Hindustan Zinc Oil India Petronet LNG

n The country’s top zinc and silver producer, Hindustan
Zinc (HZL), is among the top dividend payers in India Inc
with a current dividend yield of 5.8 per cent
n Historically, HZL has been the most profitable and cash
rich metal and mining firm in India with a debt-free
balance sheet
n In FY22, HZL was among the top dividend payers in India
Inc with a total pay-out of ~7,605 crore or ~18 per share
n Investors can expect a hefty dividend from HZL in FY23 as
well, given the 17.1 per cent YoY growth in net profit in
the TTM period
n The stock is currently trading at a P/E and P/B (price-to-
book value) ratio of 12.5x and 4.5x, respectively
n The upstream oil and gas producer is another big
dividend payer, with a dividend yield of 5.7 per cent at
its current share price
n The company paid a total dividend of ~1,545 crore or
~14.3 per share in FY22
n Analysts expect Oil India to increase its dividend pay-out
in FY23 as its net profit has more than doubled in the TTM
period ended December 2022, while its net sales rose 42.1
per cent YoY
n Oil India’s RoE is also healthy at 24.5 per cent and debt-
to-equity ratio of 0.5x in H1FY23 is pretty comforting
n The stock valuation is also cheap at a trailing P/E multiple
of 3x and P/B of 0.9x
n The government-owned importer of liquified natural
gas (LNG) and storage terminal utility is another big
dividend payer with a current dividend yield of
5.2 per cent
n The company paid a total dividend of ~1,725 crore or ~11.5
per share in FY22
n Analysts expect the company to maintain its dividend
pay-out in FY23, given the 6.5 per cent YoY growth in its
net profit in the TTM period
n Petronet has faced earnings headwinds in the last two
years due to a sharp rise in natural gas prices, but its
finances remain strong with RoE of 24.1 per cent and
debt-equity ratio of 0.2x in H1FY23

As on March 6, 2023 FY22 Growth (%) Analyst* As on March 6, 2023 FY22 Growth (%) Analyst* As on March 6, 2023 FY22 Growth (%) Analyst*
Target Dividend Dividend TTM TTM Target Dividend Dividend TTM TTM Target Dividend Dividend TTM TTM
CMP Price Yield Amount RoE Net TTM CMP Price Yield Amount RoE Net TTM CMP Price Yield Amount RoE Net TTM
( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold ( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold ( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold
311.7 310 5.8 7,605 34.7 24.9 17.1 3 10 2 262.2 274 5.7 1,545 24.5 42.1 102.6 15 2 2 224.5 250 5.2 1,725 24.1 44.5 6.5 22 5 11
nCoal India (CIL) is at the top of the list with a dividend
yield of 7.7 per cent, compared with 1.2 per cent offered
by the Sensex
nCIL has historically been one of the biggest dividend
payers in India — it paid out ~10,477 crore in financial
year 2021-22 (FY22) or ~17 per share — and is expected to Bata India Bayer CropScience AkzoNobel India
continue with a hefty pay-out in FY23 as well n Bayer CropScience, owned 71.43 per cent by its
nCIL’s net sales rose 29 per cent year-on-year (YoY) in the German parent, is one of the major players in the
trailing 12-month (TTM) period ended December 2022, agrochemical sector
while its net profit jumped 92 per cent YoY n While its overall market share is over 15 per cent,
n The stock is trading at a P/E (price-to-earnings) ratio of the company has a 40-45 per cent share in the rice
4.5x — one of lowest among index stocks — and the hybrids segment
return on equity (RoE) was high at 52 per cent n In addition to strong brand recall and superior product
n The stock has risen around 20 per cent in the last 12 offerings, the company will benefit from new launches
months and there is potential upside of 11 per cent from and higher global crop prices
current levels n After the December quarter earnings, the Bayer
management highlighted that it was continuing on its
n Bata India’s strong balance sheet with net cash position, trajectory with sustained growth investments, while n The paint maker, owned 74.8 per cent by its Dutch
As on March 6, 2023 FY22 Growth (%) Analyst* healthy free cash flow generation and returns profile parent, reported a revenue growth of 8 per cent in the
Target Dividend Dividend TTM TTM focusing on maintaining profitability despite
coupled with huge runway for industry growth are inflationary pressures and other external challenges December quarter, led by a strong performance across
CMP Price Yield Amount RoE Net TTM
growth levers, believes Motilal Oswal Research the coatings business
( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold n While healthy profitability in corn crop may lead to
224.9 250 7.7 10,477 52.0 28.8 92.3 15 5 4 n The growth of the sneakers segment is a positive; the higher acreages, higher crop protection channel n Double-digit margins were achieved on the back of
category which generates a third of revenues grew inventory in the industry is expected to weigh on profitability management and operating efficiencies,
over 20 per cent in the December quarter, led by segment’s profitability, says Elara Securities the company said
digital channels n Best growth on an annual basis in the paint industry led
n Good traction in the premium portfolio (aided by new to market share gains given its efforts to boost
Redington India products/designs), strong expansion of distribution, and
growth in the digital business are expected to drive top
distribution presence as well as growth from new
launches in the waterproofing and economy emulsions
line growth in the long run n Akzo’s industrial paints generates highest return on
n In the near term, the company may underperform peers capital employed (RoCE) among peers, according to ICICI
on the growth and margin fronts, given the sluggish Securities, as it offers premium and niche problem
show of lower priced open footwear segment, weaker solution products to multiple customers instead of
channel mix and higher investments in IT and marketing selling to a handful of auto original equipment makers

As on March 6, 2023 FY22 Growth (%) Analyst* As on March 6, 2023 FY22 Growth (%) Analyst* As on March 6, 2023 FY22 Growth (%) Analyst*
Target Dividend Dividend TTM TTM Target Dividend Dividend TTM TTM Target Dividend Dividend TTM TTM
CMP Price Yield Amount RoE Net TTM CMP Price Yield Amount RoE Net TTM CMP Price Yield Amount RoE Net TTM
( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold ( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold ( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold
1,421.1 1,730 4.0 700 24.9 44.4 360.9 12 3 4 4,189.9 5,362 3.5 674 23.6 13.7 33.7 5 1 4 2,234.3 2,630 3.6 341 25.2 21.4 8.0 2 0 0

n Redington India, a leading distributor of IT and mobility

products, offers logistics and supply chain management
services to companies in India, West Asia and Africa Rashtriya Chemicals & Fertilizers ITC
n Growth over the last three years was led by the work- n Government-owned Rashtriya Chemicals & Fertilizers
from-home trend and technology adoption As on March 6, 2023 FY22 Growth (%) Analyst*
(RCF) also makes it to the list with a dividend yield of 4 Target Dividend Dividend TTM TTM
n The company was able to gain market share at the per cent at its current share price CMP Price Yield Amount RoE Net TTM
expense of smaller players while margin expansion was n It paid a total dividend of ~212.4 crore in FY22 or ~3.9 per ( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold
led by change in revenue mix and increased share 388.2 432 3.1 14,172 27.8 19.5 23.0 35 0 2
demand/lower supply n Investors can expect hefty dividend pay-out in FY23 as its
n Strong demand for enterprise IT products and pent-up net profit jumped 94.2 per cent YoY in the TTM period n The cigarette, FMCG, hotels and paper n The company trades at about 21 times its
demand for mobility devices would help Redington clock ended December 2022, while net sales rose 90 per cent major is better placed than its FY25 estimated earnings with return
16.9 per cent annual revenue growth during FY22-24, n RCF remains financially healthy with a RoE of 23.4 per competition over the next few quarters. ratios (RoE and RoCE) in the 30-36 per cent
says Quantum Securities cent and a debt-equity ratio of 0.67x in H1FY23 More than 80 per cent of its profits are band
n A diversified product portfolio and geographical n The stock is currently trading at a low valuation, with P/E largely protected compared with rivals, n ITC is the cheapest stock in the FMCG space
footprint offers comfort as does its attractive valuation of of 5.8x and P/B ratio of 1.3x who are grappling with the twin issues of in terms of P/E valuation, and a high
around 10x FY24 earnings volume growth and hyperinflation, says dividend yield of over 3 per cent; dividend
Phillip Capital pay-out was over 80 per cent
As on March 6, 2023 FY22 Growth (%) Analyst* As on March 6, 2023 FY22 Growth (%) Analyst* n Cigarette volumes have recovered to pre- n While ITC has been on a roll over the past
Target Dividend Dividend TTM TTM Target Dividend Dividend TTM TTM Covid levels led by better execution, new few quarters on the operational front,
CMP Price Yield Amount RoE Net TTM CMP Price Yield Amount RoE Net TTM launches, stable tax regime and market investors should note that any sharp
( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold ( ~) (~) ( %) (~ cr) (%) Sales PAT Buy Sell Hold share gains on the back of clampdown on increase in tax on cigarettes would be a
172.5 220 4.0 516 23.0 23.0 15.9 8 0 0 103.3 - 4.0 212 23.4 89.8 94.2 Na Na Na illicit trade by authorities major risk for the stock

CMP: Current market price; TTM: Trailing 12-month period ended Dec 2022; PAT: Profit after tax; RoE: Return on equity; Dividend amount and DPS (dividend per share) are for FY22; CMP, dividend yield, analyst recommendations, target price as on March 6, 2023; *Analyst recommendations Source: Bloomberg/exchanges/capitaline; compiled by BS Research Bureau
14
>
NEW DELHI | WEDNESDAY, 8 MARCH 2023 1

India’s own AI matrix by early April: Chandrasekhar

This will be one of the world’s largest publicly available datasets
and aid next generation of entrepreneurs, says minister
SHIVANI SHINDE
Mumbai, 7 March
I
ndia will have an artificial intelligence
(AI) programme stacked with large
datasets by the turn of this month,
Union Minister Rajeev Chandrasekhar
said on Tuesday, while promising that it
would aid entrepreneurs in fintech and
other digital-led sectors.
“We are launching by the end of March
or early April the India AI programme,
which will be one of the largest publicly
available datasets in the world with three
centres of excellence as announced
recently in the Budget,” said
Chandrasekhar, who is the minister of
state for electronics and IT.
Chandrasekhar, who was addressing
the India Fintech Conclave in Mumbai,
added that India’s own AI ecosystem would
catalyse the transformation of the coun-
try’s next generation of entrepreneurs.
On the regulatory mechanisms that the
Centre has been working on,
Chandrasekhar said that the Digital
Personal Data Protection Bill and the
upcoming Digital India Act would be the
two prongs of the innovation ecosystem.
He added that the two would bring in
behavioural changes, especially in the way
platforms interact with customers as well
as citizens.
“The days, when personal data could
be harvested and learning and algorithms
built on that, will change. The days of
anonymised data being stored for many
years and for creating learning platforms
will be replaced with something that is
much more instantaneous in learning
and storing. It will not be business as
usual,” he said.
The upcoming Digital India Act (DIA),
he said, will recognise the diversity and
complexity of intermediaries and the
different regulations required for online
players. “The DIA will be enacted,
designed and built, like other rules, in
consultation with all the stakeholders,”
he added.
The minister’s comments come at a
time when the government is close to
drafting the Digital India Bill to govern the
digital space on key issues such as online
harm, de-platforming, doxxing (publicly
providing personal information of an indi-
vidual, often with malicious intent) and
social media algorithms. The Bill, along
with the recently released draft legisla-
tions, Digital Personal Data Protection Bill
and the Telecom Bill — will be part of a
“comprehensive legal framework”,
Chandrasekhar said.
The Digital India Act, which will
replace India’s primary digital law — IT
Act, 2000 — is also expected to create a
“IN THE DIGITAL INDIA ACT, WE
WILL RECOGNISE AI AND WE ARE
GOING TO PRESCRIBE GUARD
RAILS FOR AI...IN THE CONTEXT
OF USER HARM, OPENNESS AND
FREE COMPETITION AND
ACCOUNTABILITY”
RAJEEV CHANDRASEKHAR
MoS (ELECTRONICS & IT)
regulator for the internet, similar to the gating mechanism. We are going to have a
Telecom Regulatory Authority of India. discussion with the RBI (Reserve Bank of
On regulation of fintech, especially India) and the Ministry of Finance around
lending apps, the minister said there this. We think that there must be some
was a thought process to have some threshold or some sort of verification, cer-
gating mechanism for newer apps to tainly not licensing, but some sort of gat-
come online. ing mechanism before the apps can come
“We have seen in some cases, like the online or onto platforms like Google Play
loan apps... there must be some kind of Store,” he added.
He stressed that AI in fintech would be
a game changer. “In the Digital India Act,
we will recognise AI and we are going to
prescribe guard rails for AI...in the context
of user harm, openness and free competi-
tion and accountability.”
Chandrasekhar agreed that big tech
players being the dominant platforms was
a reality, but emphasised that their dom-
inance should not hinder consumers’ right
of choice.
“We have to figure out, with the tools
we have, how to make sure that dominance
does not come in the way of consumers’
experience and we want to make sure they
get choice and non-distorted access to serv-
ices and products. If we see that their mar-
ket share is coming in the way of a con-
sumer getting a fair choice, we will
certainly step in. You can see the CCI
(Competition Commission of India) doing
its job in some other areas,” he added.
The CCI recently has pulled up
Google for abusing its position in the
Android mobile ecosystem with anti-com-
petitive practices.

(THIS IS ONLY AN ADVERTISEMENT FOR INFORMATION PURPOSES AND NOT A PROSPECTUS ANNOUNCEMENT)

Kochi chokes as fumes AMANAYA VENTURES LIMITED

from waste plant fire
CIN: U51101PB2009PLC032640
Our Company was originally incorporated as Amanaya Financial Services Private Limited on February 27, 2009 under the Companies Act, 1956 vide certificate of incorporation issued by the Deputy Registrar of
Companies, Punjab, Himachal Pradesh, and Chandigarh. Subsequently the name of the company was changed from “Amanaya Financial Services Private Limited” to “Amanaya Ventures Private Limited” under the
Companies Act, 2013 pursuant to a special resolution passed by our shareholders at the Extraordinary General Meeting held on September 14, 2015 and had obtained fresh certificate of incorporation dated September
16, 2015 issued by the Assistant Registrar of Companies, Chandigarh. Subsequently, our Company was converted into a Public Limited Company pursuant to Special Resolution passed by the shareholders at the

continue to billow Extraordinary General Meeting dated October 09, 2015 and the name of our Company was changed to “Amanaya Ventures Limited” to reflect the legal status of our Company pursuant to conversion, a fresh certificate of
incorporation was granted by the Assistant Registrar of Companies, Chandigarh, dated October 15, 2015. For details pertaining to the changes of name of our company and change in the registered office, please refer to
the chapter titled 'History and Certain Corporate Matters' beginning on page no. 116 of this Prospectus.
Registered Office: 69-70, First Floor, Deep Complex, Court Road, Amritsar-143001, Punjab, India; Tel. No.: +91 9914997607; Email: info@amanaya.in; Website: www.amanaya.in;
Contact Person: Mrs. Gurpreet Kaur, Company Secretary & Compliance Officer
High Court says city ‘trapped in gas chamber’; IAF PROMOTERS OF OUR COMPANY: MR. MANAN MAHAJAN
choppers spray water; schools shut for two days BASIS OF ALLOTMENT
SHINE JACOB INITIAL PUBLIC ISSUE OF 12,00,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH (“EQUITY SHARES”) OF AMANAYA VENTURES LIMITED (“OUR COMPANY” OR “THE ISSUER COMPANY”) FOR CASH AT A
Chennai, 7 March PRICE RS. 23/- PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 13/- PER EQUITY SHARE) (“ISSUE PRICE”) AGGREGATING TO RS. 276.00 LAKHS (“THE ISSUE”), OUT OF WHICH 60,000 EQUITY
SHARES OF FACE VALUE OF RS. 10/- EACH FOR A CASH PRICE OF RS. 23/- PER EQUITY SHARE, AGGREGATING TO RS. 13.80 LAKHS WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER (“MARKET
MAKER RESERVATION PORTION”). THE ISSUE LESS THE MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 11,40,000 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH AT AN ISSUE PRICE OF RS. 23/- PER
Kochi, the coastal Kerala city EQUITY SHARE AGGREGATING TO RS. 262.20 LAKHS (IS HEREINAFTER REFERRED TO AS THE “NET ISSUE”). THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 32.09% AND 30.49%, RESPECTIVELY OF THE
POST ISSUE PAID UP EQUITY SHARE CAPITAL OF OUR COMPANY. FOR FURTHER DETAILS, PLEASE REFER TO SECTION TITLED “TERMS OF THE ISSUE” BEGINNING ON PAGE NO. 201 OF THE PROSPECTUS.
known for its air quality,
As per Regulation 253(2) of the SEBI (ICDR) Regulations, as amended, as present issue is a fixed price issue 'the Allocation' is the net issue to the public category shall be made as follows:
has had a thick haze for the a. Minimum fifty percent(50%) To Retail Individual Investors; and
last six days after a solid b. Remaining to:
waste treatment plant caught (i) Other investors including corporate bodies or institutions, irrespective of the number of specified securities applied for;
fire Thursday. c. The unsubscribed portion in either of the categories specified in (a) or (b) above may be allocated to the applicants in the other category.
Pollution in Kochi on If the retail individual investor category is entitled to more than fifty per cent on proportionate basis, accordingly the retail individual investors shall be allocated that higher percentage.
Tuesday was worse than in THE FACE VALUE OF THE EQUITY SHARES IS RS. 10.00 EACH AND THE ISSUE PRICE OF RS. 23.00 IS 2.3 TIMES OF THE FACE VALUE
New Delhi, as the authorities
struggled to control fumes ISSUE OPENED ON: FEBRUARY 24, 2023; FRIDAY; ISSUE CLOSED ON: FEBRUARY 28, 2023; TUESDAY
from the municipal corpora-
The Equity Shares of the Company are proposed to be listed on theSME Platform of BSE Limited (“BSE”) in terms of the Chapter IX of the SEBI (ICDR) Regulations, 2018 as amended from time to time. Our Company has
tion’s plant in Brahmapuram. received the In-Principal approval letter dated January 13, 2023 from BSE for using its name in the offer document for listing of our shares on the SME Platform of BSE. For the purpose of the Issue, the Designated Stock
The Kerala High Court said Exchange will be BSE. The trading is proposed to be commenced on March 09, 2023, Thursday (Subject to the receipt of listing and trading approval from the BSE).
“the city is trapped in a gas Notice to Investors: 57393 equity shares aggregating to 1.53% of our post issue capital has been dematerialized on February 10, 2023 and the said shares are locked in for 1 years w.e.f. 10/02/2023 are held in
chamber” and helicopters of unclaimed suspense demat account held with DP:NIKUNJ STOCK BROKERS LIMITED[IN302994]. Further, 41596 equity shares in physical form have been locked in for 1 year w.e.f. 25/02/2023.
the Indian Air Force were On Tuesday, authorities struggled to control fumes from the SUBSCRIPTION DETAILS
As per the Final certificates issued by the SCSB's, Syndicate ASBA & UPI, 273 applications for 19,86,000 Equity Shares have been received and the amount collected/blocked is Rs. 4,56,78,000 resulting in 1.62 times
deployed for spraying water municipal corporation’s plant in Brahmapuram PTI
subscription (including reserved portion of market maker). The details of the applications received in the issue (before technical rejections) are as follows:
over areas near the plant on Detail of the Applications Received (Before Technical Rejection):
Tuesday. Business leaders in are experiencing foul smell and Industry of India’s
Category Number of Application(s) % to Total Number of Equity Shares % to Total Subscription (Times) Shares as per Prospectus
the city expressed concern and other issues related to (Assocham) Kerala state devel-
about the air quality, but said pollution,” said Kochouseph opment council. Sethunath Market Maker 1 0.37 60,000 3.02 1 60,000
that it has not affected their Chittilappilly, founder of said the government should Other than Retail Individual Investors 14 5.13 3,78,000 19.03 0.66 5,70,000
work. Authorities said that the V-Guard Industries and a come out with a fresh tender Retail Individual Investors 258 94.51 15,48,000 77.95 2.72 5,70,000
fire is under control. chain of amusement parks to award waste treatment to a Total 273 100.00 19,86,000 100.00 1.62 12,00,000
According to Kochi’s air called Wonderla. known corporate. The details of applications rejected by the Registrar on technical grounds (including withdrawal) are detailed below:
quality index dashboard, the The High Court remarks According to the media
Category No. of Applications No. of Equity Shares
concentration of poisonous came after it filed a suo motu reports last year, Kochi gener-
PM2.5 particulate matter was case based on a letter by Justice ates around 326 tonnes of Market Maker - -
2.7 times above Devan waste daily. More than 90 per Retail Individual Investors 7 42,000
the WHO’s rec- According to Kochi’s Ramachandran. cent of this waste is collected Other than Retail Individual Investors - -
ommended air quality index The court dem- daily. “Now Kochi is living Total 7 42,000
limit. PM2.5 and dashboard, the anded strict ac- with more pollution than After eliminating technically rejected applications, the following tables give us category wise net valid applications and allotment:
PM10 are concentration of tion against the Delhi. I think rather than
Category Number of % to Total No. of Valid Shares Issue Size (as No. of Application No. of Shares % of Total Subscription Revised Subscription
minute particles poisonous PM2.5 people respon- thinking about a shut down,
Applications applied per Allotted Allotted Allotted (Times) in (Times) in relation to
present in the was 2.7 times above sible for the fire. industry should learn to sur- Prospectus) relation to Shares Allotted
air, the exposure the WHO’s The government vive,” said E S Jose, of the Valid Bids
to which is recommended limit had announced Kerala Chamber of Commerce Market Maker 1 0.38 60,000 60,000 1 60000 5.00 0.66 1.00
harmful to a holiday for sch- and Industry. Other than Retail Individual Investor’s 14 5.26 3,78,000 5,70,000 14 228000 19.00 2.64 1.66
health. Kochi ools in the city Kochi’s citizens are con-
Retail Individual Investor’s 251 94.36 15,06,000 5,70,000 152 9,12,000 76.00 1.00 1.65
had a PM2.5 of 41 and PM10 for the last two days. cerned that air pollution
Total 266 100.00 19,44,000 12,00,000 167 12,00,000 100.00 1.62 1.62
of 91 on Tuesday: much “Some of the shops and appears to be getting worse.
higher than 31 and 81 respec- business units were closed “This kind of pollution is ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange – BSE on Friday; March 03, 2023
tively in New Delhi, often only on Sunday. We will have not familiar to Kochi. In some A. Allocation to Market Maker (After Technical Rejections & Withdrawal): The Basis of Allotment to the Market Maker, at the issue price of Rs. 23.00 per Equity Share, was finalised in consultation with BSE. The
category was subscribed by 1.00 times. The total number of shares allotted in this category is 60,000 Equity shares.
ranked the world's most pol- to leave with this and cannot areas people are suffering with
B. Allocation to Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to the Retail Individual Investors, at the issue price of Rs 23.00 per Equity Share, was finalized in
luted capital. afford another shutdown as breathing difficulties and also
consultation with BSE. The category was subscribed by 2.64 times i.e., for 15,06,000 Equity Shares. Total number of shares allotted in this category is 2,28,000 Equity Shares to 14 successful applicants.
“We are not yet impacted the industry is slowly coming burning sensation in the eyes.
The category wise details of the Basis of Allotment are as under:
by the pollution. There is no back to normalcy after being We are concerned about the
dip in footfall too at our hit badly by the pandemic,” situation and a lot of people No. of Shares No. Of % to total Total No. of Equity % of total Proportionate Allocation per Allocation per Ratio of Ratio of Number of Total No. of No. of
amusement park . However, I said Raja Sethunath, chair- are temporarily shifting to Applied for Applications Shares applied in Shares Available Applicant Applicant Allottee's to Allottee's to Successful Equity Shares
(Category received this Category (Before (After Applicant: Applicant: applicants Shares Surplus/
am staying in the man of the Associated other places,” said Bitu
wise) Rounding Off) Rounding Off) Ratio 1 Ratio 2 (after allocated/ Deficit
Palarivattom area, where we Chambers of Commerce George, a resident of Kochi. rounding allotted
off)
6,000 251 100.00 15,06,000 100.00 9,12,000 3633.47 6,000 152 251 152 9,12,000 0
C. Allocation to Other than Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to Other than Retail Individual Investors, at the issue price of Rs.23 per Equity Share, was
finalized in consultation with BSE. The category was subscribed by 1.66 times i.e., for 11,34,000 shares. The total number of shares allotted in this category is 2,28,000 Equity Shares to 14 successful applicants.
The category wise details of the Basis of Allotment are as under:
No. of Shares No. Of % to total Total No. of Equity % of total Proportionate Allocation per Allocation per Ratio of Ratio of Number of Total No. of No. of
Applied for Applications Shares applied in Shares Available Applicant Applicant Allottee's to Allottee's to Successful Equity Shares
(Category received this Category (Before (After Applicant: Applicant: applicants Shares Surplus/
wise) Rounding Off) Rounding Off) Ratio 1 Ratio 2 (after allocated/ Deficit
rounding allotted
off)
12,000 2 14.29 24,000 6.35 14,476 7238.10 6,000 1 1 2 12,000 2,476
18000 8 57.14 1,44,000 38.10 86857 10857.14 12,000 1 1 8 96,000 -9,143
30,000 1 7.14 30,000 7.94 18,095 18095.24 18,000 1 1 1 18,000 95
42,000 1 7.14 42,000 11.11 25,333 25333.33 24,000 1 1 1 24,000 1,333
54000 1 7.14 54,000 14.29 32571 32571.43 30,000 1 1 1 30,000 2,571
84,000 1 7.14 84,000 22.22 50,667 50667.67 48,000 1 1 1 48,000 2,667
Grand Total 14 100.00 3,78,000 100.00 2,27,999 14 2,28,000
The Board of Directors of the Company at its meeting held on March 03, 2023 has taken on record the Basis of Allocation of Equity Shares approved by the Designated Stock Exchange viz. BSE and has authorized the
corporate action for the transfer of the Equity Shares to various successful applicants.
The Refund/allotment intimation will be dispatched to the address of the Applicants as registered with the depositories on or before March 06, 2023. Further, the instructions to Self Certified Syndicate Banks for
unblocking the amount will be processed on or before March 06, 2023.The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details
with the depositories concerned. In case the same is not received within prescribed time line, investors may contact at the address given below. The Company is taking steps to get the Equity Shares admitted for trading
on the SMEPlatform of BSE Limited within six working days from the date of the closure of the Issue.
Note: All capitalized terms used and not defined herein shall have the respective meaning assigned to them in the Prospectus dated February 10, 2023 ("Prospectus").
INVESTORS PLEASE NOTE
The details of the allotment made would also be hosted on the website of the Registrar to the Issue- BEETAL FINANCIAL & COMPUTER SERVICES PRIVATE LIMITED at www.beetalfinancial.com. All future
correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/Sole applicants, serial number of the Application Form, number of shares applied for and Bank Branch
where the application had been lodged and payment details at the address of the Registrar given below:
BEETAL FINANCIAL & COMPUTER SERVICES PRIVATE LIMITED
Beetal House, 3rd Floor, 99, Madangir, Behind Local Shopping Centre, New Delhi-110062, India
Tel. No.: 011-29961281-83/26051061/26051064 Fax No: 011-29961284
Email: beetal@beetalfinancial.com / beetalrta@gmail.com Investor Grievance Email: investor@beetalfinancial.com
Website: www.beetalfinancial.com Contact Person: Mr. Punit Mittal SEBI Registration No.: INR000000262
FOR Amanaya Ventures Limited
On behalf of the Board of Directors
Sd/-
Place: Amritsar Rajni Mahajan
Date: March 06, 2023 Managing Director
The Level of Subscription should not be taken to be indicative of either the market price of the Equity Share on Listing or the business prospects of Amanaya Ventures Limited.
The Equity Shares have not been and will not be registered under the US Securities Act (the “Securities Act”) or any state securities law in United States and may not be Issued or sold within the United States or to, or for
the account or benefit of, “U.S. persons” (as defined in the Regulations under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the Securities Act
of 1933.
Communicate India