TUESDAY, 30 APRIL 2024

22 pages in 2 sections www.business-standard.com

NEW DELHI
~13.00
VOLUME XXXI NUMBER 11

THE MARKETS ON MONDAY chg#

Sensex 74,671.3 p 941.1

Nifty 22,643.4 p 223.5
Nifty Futures* 22,750.6 p 107.2 COMPANIES P2 COMPANIES P2
Dollar
Euro
Brent crude ($/bbl)
~83.5
~89.4
87.2##
~83.4 **
~89.5 **
89.2 **
NEW GOVT NEEDS TO EXPLORE PLACING NESTLÉ INDIA CMD: ADDED SUGAR
Gold (10 gm)### ~72,083.0 
*(May) Premium on Nifty Spot; **Previous close;
# Over previous close; ## At 9 pm IST;
~75.0
LONG-TERM ORDERS: BHARAT FORGE MD IN CERELAC WITHIN LIMITS
### Market rate exclusive of VAT; Source: IBJA P U B L I S H E D S I MU L T A N E OU SL Y F RO M AHM ED AB AD , BE NGA LU RU, BH OPAL , BH UB ANES W AR, CHAND I G ARH , CH ENNAI , HY D E R A B AD , K OC HI , K OL K AT A, L U C K N O W , MU M BA I , N E W D E L H I AN D P U N E

OLA CABS CEO QUITS,

FIRM TO LAY OFF 10%
Hemant Bakshi, chief executive of ANI
Govt may tweak
IBC to factor in
Technologies, the parent firm of Ola Cabs,
has resigned after four months into this role.
The departure of Bakshi coincides with a
restructuring exercise at the
company that will impact at

climate change
least 10 per cent of the 1,800-
strong workforce, sources
said. The restructuring is
part of a broader push
towards profitability
as Ola Cabs prepares
for an initial public
Experts see a need to
offering. 3> align insolvency laws
with global action
JSW, JFE in race to buy

IMAGING: AJAY MOHANTY

RUCHIKA CHITRAVANSHI
30% in Australian mine New Delhi, 29 April
The JSW group and Japan’s JFE have offered

to acquire up to 30 per cent in an Australian
coal mine currently owned by Whitehaven
Coal. The Sajjan Jindal-owned company is
planning to make an aggressive offer to
secure its raw material supplies, said a
banker close to the development.
Refund excess charges to
customers: RBI to lenders
Concerned over some banks and lenders
resorting to unfair practices in charging
of interest, the Reserve Bank of India
(RBI) on Monday directed them to take
corrective action and refund excess
charges to customers.
> RESULTS RECKONER
Quarter ended Mar 31, 2024; Common sample
of 207 companies (Results available for 232)
SALES
Mar 31, 2023 12.4 % ~8.01 trn
Mar 31, 2024 11.6% ~8.94 trn
NET PROFIT
Mar 31, 2023 -0.4%
Mar 31, 2024 30.8%
T
he government is contemplat-
ing changes to the Insolvency
and Bankruptcy Code (IBC) to
deal with environmental
claims and liabilities of defaulting
2> companies to make the law future-
ready and meet climate action goals,
sources told Business Standard.
Currently, the IBC has various cate- GETTING FUTURE-READY
gories of claims and creditors, including
those related to environmental liabil- > World Bank
working group
> Process could
require an
ities. Experts, however, pointed out that
it did not provide for any special treat- studying climate environmental
ment for such liabilities which were action and trustee or adjudicator
treated as ordinary trade liabilities. insolvencies to see such claims
“To integrate environmental goals
6> with the IBC may require developing > Risks from climate change to
fresh guidelines. The matter needs businesses and vice versa need
more discussion — who should adju- to be taken into account
dicate environmental claims, what cost Environmental claims might need
they should assign to it, whether to liq- to be embedded in law
uidate or resolve a polluting company,
etc,” the source said.
Globally, a discussion has recently claims out of environmental impact.
begun on integrating climate action We also need to discuss what class of
with insolvency processes by a creditors should these claims fall and
 12-member working group formed by what priority would they get. We have
the World Bank, INSOL International, prepared a problem paper and now we
 and the International Insolvency are working on the solutions,” said
Institute earlier this year. Sumant Batra, president, Insolvency
~1.03 trn  “This is a present challenge, not Law Academy and member of the
something in the future. There is a World Bank working group.
~1.35 trn  growth in the number of people filing Turn to Page 6 >

Smallcaps set to post CONG’S INDORE

NOMINEE DROPS
OUT, MAY JOIN BJP
biggest gain in 5 mths ILLUSTRATION: AJAY MOHANTY
A fortnight before polling on
the seat, the Congress
STEP INTO THE AMRIT KAAL WITH
SUNDAR SETHURAMAN candidate for
Mumbai, 29 April BOUNCING Smallcap
stocks have Madhya
HDFC MANUFACTURING FUND
The Nifty Smallcap 100 rose BACK rebounded Pradesh’s
Indore, Akshay
for a sixth consecutive day Sensex Nifty 50 sharply Kanti Bam,
on Monday, extending its Nifty Smallcap 100 from their BATTLEGROUND withdrew his
monthly gain to 11.4 per cent. Nifty Midcap 100 March lows nomination
2024
The index is set to post its big- (Returns in %) on Monday. NFO Period: April 26th - May 10th, 2024
12.0
10.4

gest monthly jump since This is a second setback for the

7.8

11.4

November 2023. The Nifty Congress, and a third for the

7.9
7.6
6.9

5.8
5.5

5.7

Midcap 100 also gained for a INDIA bloc. Indications were

5.2
4.9

sixth straight session, taking that Bam could join the

1.6

1.4
1.6

1.4
1.2
1.0

its April gain to nearly 6 per Bharatiya Janata Party. 4>

0.0

cent — its best monthly show

-4.4
-0.3
-0.5

-0.5
-0.7

since December. INDIA’S GROWTH NOT

Both indices had plum- ARITHMETIC INEVITABILITY,
meted in March amid con-
cerns over expensive val-
Nov
2023
Dec Jan Feb
2024
Mar Apr* SAYS FM 4> WHY Growing consumption, investments
uations and a warning by 1
markets regulator Securities
and Exchange Board of India
*As on April 29

SENSEX (intraday)
Source: Bloomberg
TAKE TWO P13 INVEST? and exports
(Sebi) regarding a “bubble” 1.3 Chg %
NSE
MORE AWE
buildup. However, they have
more than recouped their
NIFTY
50 1.0 THAN SHOCK
Chg %
losses — the Nifty Smallcap In spite of the wars in Europe Changing geopolitical dynamics
100 index has surged over 20 Sources: Bloomberg, exchanges and West Asia, 2
per cent from its March lows,
while the Nifty Midcap 100
Compiled by BS ResearchBureau fears of an oil
shock have
in a multi polar world SCAN TO
KNOW MORE
index has climbed 12 per cent high of ~406.5 trillion ($4.9 tril- and Nifty this month, which not yet
to trade at fresh highs. This lion) on Monday. It was ~364 are up 1.4 per cent each. materialised.
rebound has propelled the trillion at the start of the year. Things can
market capitalisation of all Both broad market indicators BACKED BY BANKING STOCKS, change in a hurry, though, Emergence of India as a
BSE-listed firms to a record have outperformed the Sensex BENCHMARKS GAIN 1% II,1 > writes S DINAKAR 3
manufacturing powerhouse

In the works: Telecom Patent Fund Contact your MFD /RIA.

to access costly tech, drive innovation HDFC Manufacturing Fund (An open-ended equity scheme following
manufacturing theme) is suitable for investors who are seeking*: Riskometer#
SURAJEET DAS GUPTA
New Delhi, 29 April FUND FACTS  To generate long-term capital appreciation o M
w t erate
Moder
oderate Highately H
i
gh

> DoT’s proposed > Expensive patented tech to be

Mo Lo
d

In a bid to bolster innovation and support Telecom Patent made accessible to startups, SMEs,  Investment predominantly in equity & equity related securities of companies
Very
High

engaged in the manufacturing theme

Low

indigenous technology development, the Fund to acquire academia, domestic companies

Department of Telecommunications licences of RISKOMETER
(DoT) is working on instituting a Telecom patented > Aim is to facilitate R&D, *Investors should consult their financial advisers, if in doubt about whether the product Investors understand that their principal will be at
Patent Fund (TPF). This fund aims to
hardware & innovation, development of is suitable for them. very high risk
provide vital support to startups, small
software tech indigenous tech
and medium enterprises (SMEs),
academia, and Indian companies by directly from global > Initial funding for TPF may come #The product labeling assigned during the NFO is based on internal assessment of the scheme characteristics or model
facilitating the acquisition and licensing corporations, from Telecom Technology portfolio and the same may vary post NFO when the actual investments are made.
of expensive patented technology, patent-holders Development Fund, other channels For latest riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com
spanning both hardware and software. The Scheme being thematic in nature carries higher risks versus diversified equity mutual funds on account of concentration
The TPF would be used to acquire and theme specific risks.
licences of crucial patented technology proposed fund would manage the and development (R&D) endeavours,
from global corporations or patent- licensing of intellectual property rights and also foster an ecosystem of
holders to assist domestic telecom (IPR) at a national level. innovation in domestic telecom
companies, particularly SMEs, which By bridging this gap, the fund also companies, thereby helping them build Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
often face hurdles in accessing these aims to empower institutes and indigenous technology and enhance
directly because of cost constraints. The academia to accelerate their research product localisation. Turn to Page 6 >
2 COMPANIES NEW DELHI | TUESDAY, 30 APRIL 2024

STOCKS > NTPC

Begins commercial
> IRCON International
JV secures railway
> KPIT Technologies
Q4FY24 profit
> Techno Electric & Engineering
Bags orders
> GRM Overseas
Bags order to supply
IN THE NEWS operation of 57 Mw project worth surges 47% Y-o-Y worth ~4,063 crore 4,500 mt premium
Anta Solar PV Project ~1,198 crore to ~164 crore basmati rice to Oman
~363.1 CLOSE ~255.0 CLOSE ~1,508.5 CLOSE ~1,020.7 CLOSE ~148.4 CLOSE
p2.1% UP* p1.7% UP* p6.5% UP* p5.3% UP* p4.3% UP*
*OVER PREVIOUS CLOSE

>

IN BRIEF
U’khand suspends licences of ‘New govt needs to explore placing long-term orders’
14 products of Ramdev's firms India’s defence exports have grown by 31 times in the past decade. The private sector accounted for 60 per
cent of the record defence exports in 2023–24 (FY24), when they grew 32.5 per cent year-on-year to touch
defence procurement policy in recent years?
The Narendra Modi government introduced
of these exports. Exports constitute 80 per cent
of our defence business. While major domestic
The Uttarakhand drug ~21,083 crore (about $2.63 billion). Against this backdrop, Bharat Forge’s Chairman and Managing Director its first defence procurement policy in 2016. orders are awaited, we have secured a good
regulator has suspended BABA KALYANI, in an interview with Bhaswar Kumar in Pune, talks about what the new government Prior to this, the private sector played a limited volume of export orders for our guns, albeit not
manufacturing licences of 14 should focus on in its first 100 days to give Make in India in defence a fillip. Edited excerpts: role in defence manufacturing. The primary for artillery domestically. Kalyani Strategic
products made by aim of the 2016 policy paper was to bridge the Systems’ (KSSL’s) revenue stood at about
pharmaceutical companies Large orders for the domestic industry are every requirement. It’s time for the trust gap between the government and the ~1,200 crore last year, with a significant
of Baba Ramdev (pictured) for still missing. So, what should the new government to select India’s defence private sector, marking a big change. increase expected this year. KSSL, a subsidiary
repeatedly publishing government do in its first 100 days to address manufacturer and grant them long-term Several policy measures were introduced to of Bharat Forge, was established as a flagship
misleading advertisements this area of friction? orders. promote self-reliance, with priority given to company to drive defence business initiatives.
about their efficacy, a When Covid-19 hit, things came to a standstill. products designed and developed in India in
government order showed. This posed a challenge for military With initiatives like the production-linked terms of procurement. A lot of emphasis What are KSSL’s next steps?
The manufacturing procurement. Simultaneously, the Galwan incentive scheme, there’s pushback against was placed on involving small and We possess the largest capacity globally
permits were suspended in clash occurred between India and China in the government picking winners and losers. medium enterprises in defence for manufacturing artillery guns,
an April 15 order which has 2020. In response, the government and the Is such criticism hindering the government production, akin to the support capable of producing 12 guns per
not been made public but armed services initiated emergency from implementing your suggestions? industries in the automotive month. The major European
has been reviewed by procurement procedures, restricting I don’t believe the government is favouring sector. manufacturers, numbering only four,
Reuters. A spokesperson for Ramdev said he did not have any purchases to what was needed for the next 12 particular companies. The process typically For instance, any procurement can produce about 20 a year.
immediate comment on the matter. months, with a cap of ~300 crore per item, begins with a request for information. Perhaps below ~200 crore by any government Our installed capacity exceeds 300
The Supreme Court of India has in recent weeks repeatedly necessitating swift decision- 10–12 companies express interest in or public sector agency must be from barrels per year. With countries drawing
criticised Ramdev for not complying with its directives in an making. Today, the services and the manufacturing the product. an Indian company. Many such lessons from the Ukraine-Russia conflict,
ongoing lawsuit to stop misleading advertisements of some of his Ministry of Defence favour this Subsequently, there’s a rigorous reforms have been enacted. As a there is a surge in demand. Artillery
traditional ayurvedic medicines. process. However, it also resulted in process of technical evaluation and result, red tape has been will be our main vertical
The judges are considering whether to press contempt charges a new challenge: the absence of long- extensive discussions between the eliminated. Moreover, because India alone requires
against Ramdev or not. PTI term or platform orders. BABA KALYANI industry and the armed services. the Defence 4,000 artillery guns to be
Building a platform within ~300 Many companies drop out during Production & Export replaced over the next 15
CMD, Bharat Forge
crore is unfeasible. For instance, we this process. Promotion Policy years. We will secure a
Former StanChart head Roy set would receive an order for 36 Kalyani
M4 mine-protected vehicles per year. Developing a single artillery gun prototype
(DPEPP) 2020 outlines
targets for domestic
share of that
business.
to join Jio Financial as CEO Producing only 36 vehicles annually isn't
viable. In its 100-day agenda, the new
costs ~40–50 crore. How many entities are
willing to invest that sum and then wait five
production and
exports for the first
Ammunition
also presents
Kusal Roy (pictured), who recently government must explore issuing long-term years for the prototype to undergo testing time. This is a step in huge business
stepped down from Standard orders for platforms. The Railways, for across various locations, incurring additional the right direction. potential.
Chartered Bank, is likely to head Jio instance, awards a 10-year contract through a expenses? While progress is Following the
Financial Services, sources said. Roy, bidding process for projects like the Vande There are built-in safeguards. Ultimately, there ongoing, major strides Russia-Ukraine
who was heading consumer, Bharat and other trains. A similar approach is are typically three to four companies capable have been made. India’s war, every
private and business banking at the needed in defence. Once the emergency of competing in the bidding process, leading to defence exports reached a European country,
India arm of the British Bank is likely procurement phase subsides, stability will prototype development. record high in FY24, with regardless of size, has
to join Jio Financial next month. Roy, ensue. Moreover, the government must the private sector commenced ammunition
a former Citi banker, also had stints designate its suppliers. Not everyone can fulfil What positive changes have occurred in India’s accounting for 60 per cent restocking.
with Barclays, ICICI Bank, and
Tata Capital. BS REPORTER

E-commerce market to reach

$325 bn by 2030: Invest India Added sugar in Cerelac well JSW, JFE in race
to buy 30% in
India's e-commerce landscape is poised for a monumental gain
by 2030, said a report by investment promotion and facilitation
agency Invest India. Forecasting a substantial surge to $325 billion
by 2030, the report added that the nation's digital economy was
expected to reach an impressive $800 billion by the same time.
within limits: Nestlé India Australian mine
Valued at $70 billion, India's online shopping makes up around 7 AKSHARA SRIVASTAVA 4-5 per cent.
per cent of the country's total retail market, therefore presenting a
huge opportunity for growth. ABHIJEET KUMAR
New Delhi, 29 April
THE FUTURE OF CONSUMER The maker of Kitkat choco-
lates and Maggi noodles will OVERSEAS COAL SECTOR BUYS
GOODS COMPANIES WILL REST ON
P
ackaged foods company focus on volume-led growth, Date Company Acquirer Amount ($ mn)
Nestlé India on Monday THEIR CAPABILITY TO PENETRATE he said. “My objective is to pace
Mar 31, ‘07 Kaltim Prima Tata Power
Premji’s family office to said the formulation of
infant food products like MORE HOUSEHOLDS WITH MORE up on volume growth. Between
2016-17 and 2022, we had a vol-
Coal, Arutmin 1,300
Indonesia
use AI for investment bets Cerelac was done on the basis PRODUCTS AND MORE OCCASIONS ume growth rate of 8-9 per cent
Sep 16, ‘11 Coal and GVK Power
PremjiInvest, the largest Indian family office that manages over $10
of global norms and sugars
added to the product were
OF USAGE” …,” he said while adding that
the company would now focus infra & Infra,GVK
1,260
billion for software tycoon Azim Premji, will invest more money within the limits set by the SURESH NARAYANAN on ramping up distribution to projects Natural
into artificial intelligence companies while fine-tuning its Food Safety and Standards CMD, Nestlé India drive penetration in the more Resources
proprietary AI investment tools, a senior executive at the firm said. Authority of India (FSSAI). than 200,000 villages it now 742
Dec 15, ‘10 Griffin Coal Lanco
The fim, among the first large Indian asset managers to use AI tools “Every formulation of the covered. The company aims to
in the private equity space, is now working on an AI quant model company is done on a global sugars was 13.6 gm per 100 gm allegation, which it is racially increase its total retail outlets
Mining Infratech
for its public market bets too, TK Kurien, its managing partner and basis. There is no local of feed, while Nestlé’s was at 7.1 stereotyped, is unfortunate but from 5.1 million currently to 6 Mar 05, ‘10 Trinity Essar Global 600
chief investment officer, said in his first interview after taking the approach to making a gm of sugar per 100 gm. untrue,” he further said. million over the next four-five Coal Fund
role in 2017. BLOOMBERG nutritional adequacy study, it The company, he added, Narayanan was referring to years to drive this growth. Aug 03, ‘10 Coal Adani
is done globally,” said Suresh has reduced added sugars in the allegations of Nestlé adding “The future of consumer tenements/ Enterprises 457
Narayanan, chairman and the product by up to 30 per sugar and honey to its infant goods companies will rest on
Galilee Basin Source: Bloomberg
managing director, Nestlé cent in the past five years and milk and cereal range sold in their capability to penetrate
[ TECH DIGEST ] India. These formulations, he
said, are developed keeping in
would continue to reduce
them.
low- and middle-income coun-
tries, made by Swiss NGO
more households with more
products and more occasions
mind four parameters: The “There is no distinction Public Eye. of usage,” he said.
level of carbohydrates and done between a child in Europe Talking about the March Expressing concern over
IPAD PRO 2024 energy, protein, fats, and vita-
mins and minerals.
and a child in India or any
other part of the world,” he
quarter, Narayanan said the
company delivered a strong
the runaway inflation in cocoa
and coffee, he said the com-
TO HAVE M4 CHIP Narayanan said according said, adding that Cerelac vari- performance along with an pany was “trying to avoid as

WITH AI SUPPORT to the FSSAI, the maximum

permissible limit for added
ants with added sugars were
also available in Europe.“The
overall growth rate of 9.3 per
cent with a volume growth of
best as possible a price
increase”. DEV CHATTERJEE world.
The 2024 iPad Pro model, expected Mumbai, 29 April Earlier, several Indian com-
to be launched at Apple’s ‘Let Loose’ panies, including Tata Power,
event on May 7, would likely be The JSW group and Japan’s Adani and the Essar group had
powered by its M4 chip instead of M3.
It means Apple would debut the M4
chip, which would reportedly feature a
new neural processing unit for running AI
Realtors retool pricing strategies JFE have offered to acquire up
to 30 per cent stake in an
Australian coal mine currently
owned by Whitehaven Coal.
acquired coal mines overseas
as part of their strategy to
secure raw material supplies.
The JSW group has made
models on-device, with the iPad Pro.
amid rising cost of construction The Sajjan Jindal-owned
company is planning to make
an aggressive offer to secure its
ambitious plans to invest in
several sectors. In March this
year, the group announced a
ANEEKA CHATTERJEE products lucratively in the market. raw material supplies, joint venture with China’s
Bengaluru, 29 April “The new prices place our develop- said a banker close to the SAIC Motor to acquire 35 per
Sony’s 'limited-period ments in a better price range relative to development. cent in MG Motor India. It is
Escalating construction costs are forc- the reserve, materials, design, facil- Whitehaven Coal is selling planning to invest ~40,000
offer' on PlayStation ing real estate players to optimise their ities, and attention to detail,” said a minority stake in crore to set up an electric
5 Slim expenditures and readjust their pric-
ing strategies to strike a balance
Sanjoo Bhadana, MD of 4S Developers.
Gurugram’s realty developer, MRG
Blackwater’s metallurgical
coal mine, which has attracted
vehicle and battery manufac-
turing unit in Odisha.
Japanese electronics maker Sony has between profitability and meeting cus- Group, has adjusted its property prices interest from the JSW group. At the same time, JSW Steel
announced ‘Summer Sale’ offers on its tomer requirements. to ~13,500 per square foot from ~10,000 The Australian company is plans to increase its capacity
recently launched PlayStation 5 Slim A recent JLL report stated that the per square foot. According to the com- keen on selling up to 30 per to 50 million tonnes per
gaming console in India. During the overall construction cost in the coun- pany, the move reflects market cent stake in the mine to both annum by 2030, and wants to
sale period (May 1-14), the Disc version try will experience an average increase dynamics, property enhancement, and suitors instead of 20 per cent secure its raw material
of the PS5 Slim console will be available of 6 per cent across various sectors in the overall value proposition. stake to one party, said a supplies via acquisitions.
at a discounted price of ~49,990. 2023–24 (FY24). “In analysing developers’ expenses, banker. Earlier reports in The company has been
In the report ‘Construction Cost it’s imperative to consider the project’s February this year had said scouting for alternative high
Guide India: 2024’, among the cities, The higher costs in Mumbai can be scale and complexity. For instance, in JSW will pick up a 20 per cent quality coal mines in Australia
Now, download two apps Mumbai continued to be the most attributed to the increased prices of a project totalling ~400 crore, con- stake in the mine for close to and other parts of the world in
expensive city, with costs higher, while essential construction materials struction expenses typically represent $1 billion but the valuation of the last few years. JSW group
simultaneously on Google Play Chennai offers a more cost-effective a significant portion. Labour costs, the final offer is now known. has built its empire by acquir-
Google Play now lets you download two apps option. The higher costs in Mumbai Despite this adjustment, the company influenced by factors such as skill Both JFE and JSW have ing several steel assets in India,
simultaneously. Earlier, the Google store allowed can be attributed to the increased assures that pricing modifications level, market dynamics, and regu- formed a 50:50 joint venture including Ispat Steel's unit in
only one download at a time, pushing other requests to the prices of essential construction materi- have been made to ensure maximum latory requirements, constitute a sub- in India — JSW JFE Electrical Maharashtra and Bhushan
queue. Other Android app stores like those from Samsung, als like cement, reinforced steel, struc- benefit for its customers. stantial component. Balancing quality, Steel Private Ltd — to set up a Power and Steel.
Xiaomi, and OPPO allowed simultaneous app downloads. tural steel, and stones. “Although the demand for housing efficiency, and compliance is para- ~5,500-crore plant in The group is also in the race
“Businesses today are reassessing has not yet bounced back from the mount in optimising these expenses,” Karnataka. Production at the to acquire a majority stake in
their real estate choices to optimise pandemic in many of our markets, said Rajjath Goel, MD, MRG Group. unit is expected to begin from MG Motor India so that it can
Nothing’s Phone 2 (a) spending. Understanding and effec- market conditions have significantly Bengaluru-based Shriram FY27. JFE owns a 14.99 per enter the electric vehicle seg-
blue variant at ~23,999 tively managing costs are crucial in improved in recent quarters,” said Properties has reported an industry cent stake in JSW Steel. ment here. It announced a
maintaining budget control and deliv- Anurag Goel, director at Goel Ganga average selling price per unit increase An email sent to the JSW ~40,000-crore investment in
British consumer technology brand ering economically viable, high-qual- Developments. of 5–6 per cent in Bengaluru and 3–4 group did not elicit any Odisha earlier this month.
Nothing has introduced the Phone 2 ity projects,” said Jipu Jose James, Amidst “skyrocketing” material per cent in Chennai. response. Whitehaven Coal Flagship JSW Steel and
(a) in blue colour. Designed for India, managing director (MD), project and prices and labour costs, Gurugram’s 4S “We are focused on moving declined to comment on the JSW group entities announced
this variant joins the black and development services, JLL India. Developers underscored a “renais- up the price curve through portfolio sale. Bankers said Whitehaven last week that they would
white options. The blue variant will Pune-based Goel Ganga sance” in the real estate sector. Despite enrichment and market price will take a final call on the invest about ~65,000 crore
be available from May 2 on Flipkart SCAN THE CODE TO READ Developments has increased its real these challenges, prime locations improvements,” said Murali offers by June-end. over time to set up an inte-
from ~23,999 onwards. FULL REPORTS estate property prices by 5-7 per cent, retain their top-tier value and long- Malayappan, chairman and MD of JSW is not alone in acquir- grated manufacturing com-
implementing a strategic price hike. term viability, positioning finished Shriram Properties. ing coal mines across the plex in Jagatsinghpur, Odisha.

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.
NEW DELHI | TUESDAY, 30 APRIL 2024 COMPANIES 3 <

NTRACKING THE MOVEMENTN

Ola Cabs CEO quits, Orea named IndiGo’s Bharat Biotech’s

chief of transformation Ella becomes
firm may lay off Likely to take over as COO whenever incumbent retires
10% employees
DEEPAK PATEL
New Delhi, 29 April
InterGlobe Aviation on Monday appointed
Isidro Pablo Porqueras Orea (pictured),
former Chief Operating Officer (COO) of
Move comes ahead of company’s potential IPO Spanish low-cost airline Volotea, as ‘Chief of
Transformation’ of IndiGo airline.
PEERZADA ABRAR the company at approximately chairman, and managing Currently, Wolfgang Prock-Schauer is the
Bengaluru, 29 April $5 billion. The company plans director, Ola, in a letter to the COO of India’s largest airline.
to file the necessary paper- employees and a copy of Orea will take over the role from
have on IndiGo. This move could potentially
position IndiGo as a hybrid airline or a full-
service carrier akin to Air India.
The evolving landscape of Indian airlines
has led to the emergence of crucial roles such
as the ‘Chief Transformation Officer’ and
‘Chief Integration Officer’. In February 2023,
Air India made headlines with a substantial
order for 470 planes, splitting the order
between Airbus (250 planes)
and Boeing (220 planes), with 70
IVMA president
PRESS TRUST OF INDIA
New Delhi, 29 April
The Indian Vaccine Manufacturers Association (IVMA) has
announced Krishna M Ella, co-founder, executive chairman of
Bharat Biotech as the association’s new President for a two-
year period from April 2024.
A press release from Bharat Biotech said Ella takes over the
Presidency from Adar C Poonawala who held the post from
2019 to March 2024.

H
emant Bakshi, chief
executive officer of
ANI Technologies,
the parent company of ride-
hailing service Ola Cabs, has
resigned after four months into
this role. The departure of
Bakshi, a former senior
Unilever executive, coincides
with a restructuring exercise at
the company that will impact
at least 10 per cent of the 1800-
strong workforce, sources said.
The restructuring is part of
a broader push towards profit-
ability as Ola Cabs prepares for
an initial public offering (IPO).
“Hemant Bakshi had joined
Ola last year in September last
year (he was appointed CEO in
January this year) and now
wants to pursue other oppor-
tunities,” said a person familiar
with the matter.
Ola Cabs is planning an IPO
to raise $500 million, valuing
Hemant Bakshi (pictured)
had joined the firm in
January this year, with
the ride-hailing division
reporting a
narrowing of loss
to ~1,082.6 cr
in FY23
work with Securities and which Business Standard has Prock-Schauer whenever he of these aircraft designated as For the current 2-year term, Mahima Datla, managing direc-
Exchange Board of India seen. In the letter, Aggarwal retires. widebody planes. Presently, tor of Biological E assumes the role of Vice President, T Srinivas,
within the next three said that in line “Orea possesses 25 years of Vistara, a joint venture between CFO of Bharat Biotech, will be Treasurer and Dr Harshavardhan,
months, according Ola Cabs is with the compa- professional experience in dif- the Tata group and Singapore will continue as Director General of IVMA.
to the sources. In the exiting all of its ny’s vision to ferent functional areas such as Airlines (with a 51:49 ownership “Vaccines are the vital pillar of global health, and the IVMA
interim, Ola founder international serve 1 billion operations, commercial, ratio), is undergoing integration mission is to ensure that every individual, regardless of where
Bhavish Aggarwal markets as Indians and drive strategy and finance. He has into Air India. Consequently, they live, has access to life-saving immunisations,” Ella said
will oversee opera- it focuses sustainable been a C-level executive for the Vinod Kannan, CEO of Vistara, adding “innovation, sustainability, and equity are the founda-
tions. “Hemant on the Indian growth and effi- last 10 years,” IndiGo stated in also holds the role of Chief tions of our collective vision, and I am pleased to serve IVMA
(Bakshi) will be step- market ciency in the its notice to BSE. “He was with Integration Officer to facilitate along with its distinguished members and contribute to its
ping down from his organisation, the Volotea, one of the fastest grow- this merger process. vision to protect and enhance public health in India and the
role as CEO to pursue oppor- company is undergoing a ing airlines in Europe, from developing world”.
tunities outside the company. restructuring exercise to 2016-2023 and served as their COO for the Widebody expansion He emphasised the need to support
We extend our gratitude to improve profitability. last five years,” it noted. The April 25 order marks the first time that African nations’ public health vision by
Hemant for his contributions The firm has made sub- Volotea, which currently operates about IndiGo is purchasing widebody planes - IVMA members and also urged to formu-
and wish him the best in his stantial investments in artifi- 1,420 flights per week, is a much smaller air- which can travel long-haul and ultra-long- late policies and regulations in line with
future endeavours,” said cial intelligence and technol- line than IndiGo, which currently operates haul distances - for its fleet. However, IndiGo WHO and US FDA, which will help the
Bhavish Aggarwal, founder, ogy. “These changes will result about 14,000 flights per week, according to does have some experience with widebody industry to be not only globally compet-
in certain roles within the data from aviation analytics firm Cirium. planes as it currently operates two B777 air- itive but also fortify India’s vision to boost
company becoming redun- Orea assumed the role just four days after craft, leased from Turkish Airlines. the level playing field world-over in
dant,” stated Aggarwal. “We IndiGo, which currently operates a fleet of Former IndiGo CEO Ronojoy Dutta had preventive care.
are committed to supporting around 370 planes, finalised an order with previously hinted at the possibility of adding
those impacted during this European aircraft manufacturer Airbus for business-class seats to the airline's aircraft. Bharat Biotech Co-founder and
transition period.” When con- 30 A350-900 widebody aircraft. The deal is However, thus far, IndiGo continues to oper- Executive Chairman Krishna Ella
tacted, Ola Cabs declined to estimated to be valued between $4-5 billion. ate an all-economy fleet. (pictured), who is taking over the
comment. Recently, Ola Cabs “Orea has been brought on board at a piv- presidentship from Serum
decided to exit all of its inter- A crucial role otal moment for the airline, which is under- Institute’s Adar Poonawalla,
national markets, Orea’s role carries significance, especially going a significant transformation to estab- emphasised the need to support
including the UK, considering the transformative impact that lish itself as a major international player,” African nations’ public health
Australia, and the introduction of widebody planes will said an IndiGo executive. vision by IVMA members
New Zealand and
focus on the
Indian market and
growing its elec-
tric vehicle
(EV) EV fleet.

NINT’L NETWORKING OF DOMESTIC FIRMSN

ICAI order on EY India

affiliates may speed up
notification of norms
RAGHAV AGGARWAL
New Delhi, 29 April
Several affiliates of Big Four
accounting firms in India are
likely to receive orders similar
to those issued to EY India
from the Institute of Chartered
Accountants of India (ICAI) in
the coming weeks, but not
everyone at these firms is
disappointed with the
development.
Many top executives at
these firms told Business
Standard that even as there
was disappointment with the
order, some felt it would even-
tually lead to the “much-
needed” clarity on guidelines
on international networking
for domestic firms.
On Thursday, ICAI passed
an order against EY’s three
affiliates and a retired partner
for “professional misconduct.”
The institute ruled that the
name of Raj Kumar Agrawal, a
former partner at EY India, be
removed from the institute’s
register of members for three
years, with a monetary penalty
of ~5 lakh.
The ICAI’s order stated that
entities affiliated with EY were
using the email addresses and
visiting cards that advertised
the names of their global affil-
iates. According to ICAI, this
would come under publicity
for a foreign audit firm in India
and be in contravention of the
Chartered Accountants Act.
It also added that the refer-
ral fees paid by EY India to its
global network firms, EY
Global (EYG) and EY Europe,
Middle East, India and Africa
(EY EMEIA), were also against
the guidelines of the CA Act.
Similar orders against other
firms are ready and may come
out in the coming weeks, one
of the partners cited above said.
He added that they may have
come out earlier but all firms,
except EY India, had taken a
stay from various high courts.
Currently, affiliates of these
firms are meeting ICAI to dis-
cuss the “findings order”,
which is usually issued before
the final order. This findings
order was handed out to several
affiliates in February this year.
EY India’s affiliate SRBC &
Co. LLP said it would file an
appeal against the ICAI order
and has already stopped some
of the practices highlighted in
it. “Among other things, the
Audit fee paid by NSE-listed
firms rose 6.1% in FY23
The audit fee paid by companies
whose equity shares were listed
on the National Stock Exchange
(NSE) was ~1,738 crore in
financial year 2022-23 (FY23) on a
standalone basis, 6.1 per cent
higher than ~1,638 crore paid in
the previous year, according to
data shared by
primeinfobase.com.
It was based on 1,847
companies for which audit fee
data was available.
Out of the total, the
global Big Four had a 27
per cent share of the
audit fees with the
EY Group leading
at ~145.44 crore. It
was followed by
the KPMG Group at
~135.65 crore and
the Deloitte Group at
~134.14 crore.
The Price Waterhouse Group
and Grant Thornton Group
stood at fourth and fifth places
with a share of ~61.26 crore and
~56.56 crore respectively.
The average audit fee in
India was ~0.93 crore per
company in FY23, up from ~0.91
crore in FY22. The audit fee paid
by companies for 2023-24 is not
yet available in the public
domain.
The data showed that overall
fees, including audit and fees
paid for other services, paid by
order has asked that past prac-
tices of using global network
branding be stopped. Many of
such practices no longer exist
today,” it told Business
Standard.
However, the appellate tri-
bunal, which is supposed to
hear these appeals, has not
been set up by the ICAI after it
was dissolved in December last
year. Last week, in an inter-
view with this newspaper, ICAI
president Ranjeet Kumar
Agarwal said the institute will
come up with guidelines on the
aggregation of domestic CA
firms and international net-
working in the next three
months.
“With the recent order, the
matter will be taken up in the
higher courts. We believe that
the judicial process will even-
tually lead to a clear law, ethical
NSE companies were up 5.9 per
cent to ~2,043 crore in FY23 from
~1,929 crore in FY22.
Of these fees, the Big Four
accounted for a 32 per cent
share. Here too, the EY Group led
with a total overall fee, on a
standalone basis of ~194.95
crore, followed by the KPMG
Group at ~185.22 crore and the
Deloitte Group at ~182.08 crore.
Interestingly, banks paid the
lion’s share of overall fees
during 2022-23. The data
highlighted that 39 listed
banks paid an overall
fee of ~925 crore or 45
per cent of the total
in comparison to
~1,118 crore paid out
by the balance of
1,808 companies.
Of the ~925 crore paid
by banks, the 16 listed public
sector banks paid ~857 crore or
93 per cent of the total with the
State Bank of India alone
accounting for ~270.79 crore.
It was followed by the Bank
of India at ~119.5 crore and the
Bank of Baroda at ~83.96 crore.
Among non-banks, the
highest fees were paid by
Reliance Industries at ~35 crore.
It was followed by Tata
Consultancy Services at ~16 crore
and the New India Assurance
Company Limited at
~12.38 crore. RAGHAV AGGARWAL
framework and firmly estab-
lished guidelines for network-
ing,” a partner from one of the
large audit firms said.
“This is much needed now.
It would be a welcome move,”
another senior partner at one
of the Big Four firms said on
Monday.
Currently, there are guide-
lines for domestic networking
but not for international net-
working. In 2011, a high-pow-
ered committee was formed by
the Centre to review the work-
ing of international audit firms
in India. Later the same year,
some guidelines on interna-
tional networking were issued.
In 2013, notices were sent out
to around 150 firms with inter-
national networks. But in 2022,
a set of these guidelines were
repealed and there has been lim-
ited regulatory clarity since then.
6 ECONOMY & PUBLIC AFFAIRS
>
IN BRIEF
RAW official involved in
Pannun murder plot: Report
UPI credit line: NPCI may go
A Research and Analysis Wing (RAW) official identified as Vikram
Yadav was involved in the assassination plot of Sikh separatist
leader Gurpatwant Singh Pannun in the US and the move was
approved by the then Indian spy agency chief Samant Goel,
easy on interchange fee
Could be kept at 1-1.2% in a bid to push adoption
according to an investigative media report published on Monday.
In an investigative report, The Washington Post said, “that India
would pursue lethal operations in North America has stunned AJINKYA KAWALE
Western security officials.” PTI Mumbai, 29 April
T
o increase the adoption
Pro-Khalistan slogans: MEA of credit on United
Payments Interface
summons Canadian envoy (UPI), National Payments
Corporation of India (NPCI) is
India on Monday summoned the Canadian deputy high looking at an interchange fee
commissioner, and lodged a protest over the raising of pro- for transactions lower than that
Khalistan slogans at a public event in Toronto in the presence of for a credit-card transaction.
Prime Minister Justin Trudeau. The Ministry of External Affairs (MEA) Sources in the know said
described the raising of the slogans at the event as “disturbing” these charges could be 1-1.2 per
and said it illustrated once again the political space that has been cent. Fintech participants con-
given in Canada to “separatism, extremism and violence”. PTI cur with the view that the inter-
change fee is expected to be
lower than that for a credit-card
FinMin studying HC order transaction. Credit-card trans-
actions generally have an inter-
banning PSBs from issuing LoCs change fee of 1.8-2 per cent.
“The interchange basically
The Finance Ministry is studying the recent Bombay High Court varies by the merchant catego-
order banning public sector banks from seeking the issuance of ry. I believe the interchange fee
look out circulars, or LOCs, against wilful defaulters, sources said. for credit lines on UPI should
Quashing the powers granted by the Union government to public be lower than that for credit
sector banks (PSBs) to act against wilful defaulters, the High Court cards, but how much lower is
said it is arbitrary and violative of a person's fundamental rights. still to be clarified,” said Mohit
The finance ministry is aware of the April 26 judgement and will Bedi, chief business officer
make a detailed assessment of the order, sources said. PTI (CBO) and co-founder, Kiwi, a
credit on UPI fintech.
At present, there is no inter-
SC questions Kejriwal over change fee defined by NPCI for
the credit line on UPI.
non-appearance before ED A credit line on UPI is a pre-
sanctioned loan from banks.
The Supreme Court on Monday questioned the non-appearance The uptake of credit lines
of Delhi Chief Minister Arvind Kejriwal before the ED, despite on UPI has not picked up
repeated summonses for recording of statements, because there is no clarity yet
and asked if he can challenge the arrest in a money on the interchange fee between
laundering case related to the excise policy scam banks and NPCI. Axis Bank,
on the ground of non-recording of his version. HDFC Bank, ICICI Bank,
A bench of justices Sanjiv Khanna and Dipankar Punjab National Bank, and
Datta asked why the Aam Aadmi Party leader did State Bank of India offer the
not move a bail application before the trial service, according to NPCI’s
court. PTI website. The facility is also live
on apps such as BHIM, Google
Pay, Paytm, and Payzapp.
Exporters seek extension of
interest equalisation norm
Exporters have urged the government to extend the interest
equalisation scheme (IES) that will expire on June 30, to offer a
Nearly 20 critical mineral blocks BSNL’s 4G user
to be put up for sale by June-end base hits 800K
lifeline to exporters grappling with high interest rates and faltering
exports. In a statement, Federation of Indian Export Organisations,
on Monday said that the scheme provides competitiveness to
Indian exports, particularly to MSMEs. “The bank rate in India is 6.5
per cent, whereas the bank rate in many of our Asian economies is NITIN KUMAR
around 3.5 per cent. With a higher spread, the credit cost here is New Delhi, 29 April
generally over 5 to 6 per cent as compared to such countries,” FIEO
President Ashwani Kumar said. SHREYA NANDI The Centre plans to auction
roughly 20 critical mineral
blocks in the upcoming round
SC stays CBI probe into Bengal
by the end of June, alongside
the first instalment of offshore
mineral auctions within the
teacher recruitment case next three months, Mines
Secretary V L Kantha Rao said
The Supreme Court on Monday stayed the Calcutta High Court order on Monday.
directing the CBI to probe the role of West Bengal government “We are going to come up
officials in a teacher recruitment scam. It, however, refused to stay with the next auction at the end
the cancellation of the appointment of over 25,000 teachers and of June, so this auction process
non-teaching staff. A Bench of Chief Justice DY Chandrachud, will continue. Moreover, the
Justice JB Pardiwala and Justice Manoj Misra, however, refused to offshore minerals auction will
stay the high court order cancelling the appointments and said it also come within three
will hear the matter on May 6. PTI months,” Rao said while speak-
> FROM PAGE 1
States and China) have such
funds,” said a senior DoT offi-
wise struggle to afford them.”
The fund aims to catalyse
cial, highlighting the signifi- growth for domestic telecom
Telecom... cance of the initiative. “What
we envision is a fund that will
companies, the official added.
The rapidly evolving land-
Initial funding for the TPF nationally acquire licences of scape of telecom technology,
may come from the Telecom
Technology Development
Fund, with additional support
critical patents in key technol-
ogy areas, for both software
and hardware, and make
where innovations have
increasingly shorter shelf
lives, also underscores the
from various other channels. them accessible to startups, need for such a fund.
“Many countries around SMEs, academia and home- Moreover, stringent and
the world (such as the United grown companies that other- changing standards, escalat-
ing R&D costs, and concerns
around security, privacy and
legal compliance further
> BS SUDOKU # 4269 accentuate the requirement
for indigenous solutions.
There is also the matter of
reducing overreliance on for-
eign technology.
Discussions with stake-
holders have outlined plans
to establish an independent
entity under the Universal
Service Obligation Fund, or
USOF, to implement the TPF.
(USOF aims to provide wide-
spread and non-discrimina-
tory access to affordable
quality telecom services.)
The proposed TPF aligns
with India's broader initia-
tives in technology develop-
ment, one of them being the
Indian Semiconductor
Mission. Under this mission,
the government has, for
instance, procured expensive
electronic design automa-
tion, or EDA, tools in bulk
from global players such as
SOLUTION TO #4268 Cadence and Synopsys, and
Very hard: made them available to over
140 universities and colleges
««««« for free.
Solution tomorrow
IBC...
HOW TO PLAY
As countries move towards
Fill in the grid so that the COP28 goals, businesses
every row, every could face transition risk,
column and every which could lead to insolven-
3x3 box contains cies. Climate events, such as
the digits 1 to 9 tsunami and wildfires, can
lead to companies filing for
bankruptcies.
CREDIT LINE
PLAYBOOK
 Launched in Sept last year,
adoption of credit line on
UPI slow since fee structure
undecided
 Average interchange fee
for credit card transactions
is around 1.8%
 Banks will expand
partnerships once fee is
decided
NPCI does not disclose the
volumes of transactions for
credit lines on UPI. Industry
sources said the adoption of the
service had been slow since
interchange fees had not been
finalised yet. “All the major
banks in the country are ready
with their systems to extend
the facility to customers, but
everybody is waiting for the
commercials to be decided
first. The interchange for the
credit line on UPI transactions
will be lower than that for a
ing at the Critical Minerals
Summit.
The secretary also said that
the result of the auction
process for seven critical min-
eral blocks held recently was
being finalised and would be
declared within a month.
The announcement comes
shortly after the government
scrapped the auction process
for 13 blocks in March due to
lacklustre interest from poten-
tial investors. The 13 blocks
included two blocks that
received no bids and 11 that had
fewer than three technically
qualified bidders.
The Centre has initiated the
At the same time, experts
said there is also a debate on
whether companies that are
adding to environmental
damage be rescued through
insolvency regime or be liqui-
dated. For instance, if a coal
company goes into insolven-
cy, then the IBC needs to take
a view whether it should be
resolved and be allowed to
continue the same practice or
insist on change of technology
as part of the resolution
process.
“There needs to be accept-
ability that this could destroy
value. Financial distress
would mean companies
defaulting on their environ-
mental obligations. Claims
around the environment need
to be embedded in law,” said
Dinkar Venkatsubramanian,
partner, EY India.
Batra suggested that at the
stage of approval of the plan
itself, an environmental body
should be involved. “The
committee of creditors may
have the commercial wisdom
but not the expertise to deal
with climate change issues.”
Among regulators, in July
2023, Securities and Exchange
Board of India (Sebi) intro-
duced the Business
Responsibility and
Sustainability Reporting for top
1000 listed companies. Experts
said that while other regulators
may take cue from Sebi to for-
mulate similar responsibilities,
balancing environmental con-
cerns with economic impera-
tives poses a significant chal-
lenge for regulators.
Dinesh Arora, partner and
deals leader at PwC India, said
striking the right equilibrium
between fostering green prac-
tices and facilitating econom-
ic recovery requires nuanced
policymaking and a thorough
understanding of industry
dynamics.
NEW DELHI | TUESDAY, 30 APRIL 2024
Bedi from Kiwi said banks
ILLUSTRATION: BINAY SINHA
would scale up their partner-
ships once the fee was
finalised. “The reason partner-
ships haven’t come up is that
the revenue model is depend-
ent on the interchange for this
product. Once that is decided,
partnerships will start scaling
up,” he added.
Similarly, a source quoted
above added that NPCI was
looking at two ways to arrive at
a decision on the interchange
fee for credit on UPI.
“One is that when these
NPCI looking at two transactions will be of an inter-
ways to implement
the fee:
est-bearing nature, the inter-
change will be lower, whereas,
 When these
transactions will be
on the other hand, for non-
interest bearing transactions,
the interchange fee will be
of interest-bearing higher,” the person said.
nature, the interchange An industry executive
will be lesser described how this worked.
 For non-interest- “My understanding is that
bearing transactions, after a transaction, for the first
the interchange fee 15 days a customer does not
bear any interest, but is charged
will be higher
10-12 per cent thereafter. The
interchange fee will be different
credit card,” a person in the
from those transactions where
interest is applied since day
know told Business Standard.
NPCI did not respond to
zero,” the person said. The exec-
utive further said banks earned
queries sent by Business more when interest was levied
Standard.It announced the from day zero, implying that
launch of the credit line on the the interchange fee was lower
UPI facility in September last in such cases.
year. Customers can access “Under the interest-free
pre-sanctioned credit from credit period there is an impact
banks using the UPI rails. from the cost of funds. In the
“Since NPCI has not issued other case, you would generally
details about the commercials get a lower interchange since
yet, it cannot push the market you are making money from
to adopt the credit line on the charging the interest from zero
UPI facility yet,” a source said. day,” the person added.
auction of 38 critical and strate- cal mineral blocks are on the
gic minerals to date. The initial table for auction. He also urged
tranche included 20 blocks, the industry to study the data
while the subsequent tranche on these blocks to gain insight
had 18. Critical minerals such into the opportunities that are
as lithium, chromium, nickel, now available.
graphite, cobalt, titanium, and India has committed to
rare earth elements are essen- achieving 50 per cent of the
tial raw materials for sectors cumulative electric power
like electronics, electric vehi-
cle, renewable energy, defence,
installed capacity from non-
fossil sources by 2030.
and high-tech telecommunica- The Critical Minerals
tions. Currently, the extraction Summit aimed at bringing
of these minerals is dominated together a diverse array of
by a few countries, such as Indian and international stake-
China, which makes the supply holders, including industry
chain vulnerable to geopolitical leaders, startups, government
uncertainties. officials, scientists, academics,
Rao said that over 100 criti- and policy experts.
RBI asks lenders to
follow fair practices,
refund excess sum
PRESS TRUST OF INDIA
Mumbai, 29 April Conducts 4-day
Concerned over some banks VRR auction
and lenders resorting to Banks submitted bids
unfair practices in charging of worth ~97,000 crore at the
interest, the Reserve Bank of 4-day variable rate repo
India (RBI) on Monday direct- (VRR) auction on Monday,
ed them to take corrective against a notified amount
action and refund excess of ~1 trillion. The RBI allotted
charges to customers. the funds at a weighted
The guidelines on Fair average rate of 6.62 per
Practices Code issued to vari- cent. The liquidity deficit
ous regulated entities (REs) stood at ~1.48 trillion on
since 2003, inter-alia, advo- Sunday, according to data
cate fairness and transparen- by the RBI. ANJALI KUMARI
cy in charging of interest by
the lenders, while providing
adequate freedom to them as
regards loan pricing policy. Draft guidelines
“During the course of the
onsite examination of REs for
for ETPs issued
the period ended March 31, The Reserve Bank of India
2023, the Reserve Bank came on Monday released a draft
across instances of lenders Master Direction for
resorting to certain unfair Electronic Trading Platforms
practices in charging of (ETPs) and invited
interest,” the RBI said in comments and feedback
a circular. from operators, banks,
The central bank has also market participants, and
highlighted certain unfair other interested parties by
practices being followed by May 31. The aim is to
certain lenders. facilitate market makers’
“...in the interest of fair- access to offshore ETPs
ness and transparency, all offering permitted Rupee
REs are directed to review products. ANJALI KUMARI
their practices regarding
mode of disbursal of loans,
application of interest and tions of REs, the RBI said it
other charges and take cor- observed charging of interest
rective action, including sys- from the date of sanction of
tem level changes, as may be loan or date of execution of
necessary, to address,” the loan agreement and not
issues concerning charging of from the date of actual dis-
interest, the circular said. bursement of funds to
During onsite examina- the customer.
1
STANDARDISED RATES FOR HOSPITALS
States need time
to hold wider
talks: Govt to SC
SANKET KOUL healthcare facilities until stan-
New Delhi, 29 April dardised rates are set.
In its affidavit, the ministry
The Centre on Monday sub- informed the court that it had
mitted its response to the held a virtual meeting
Supreme Court urging states chaired by the health secre-
and union territories (UTs) to tary, with the chief secretaries
engage in broader consulta- of all states and UT’s on March
tions with multiple stakehold- 19 requesting all governments
ers to determine standardised to work out the standard
hospital rates. cost of medical procedures
According to the docu- and services.
ments examined by Business “Many states have suggest-
Standard, the ministry in its ed that multiple rounds of con-
response said that the exercise sultations with stakeholders,
to determine a
standard rate The SC had
including private
players and the
requires consulta- warned against
tions with all applying CGHS
Indian Medical
Association (IMA)
stakeholders rates for may be needed,
including private treatment while some
players in the services at private expressed that any
states and UTs, as health care rate range fixation
a one-size-fits-all facilities until may lead to com-
approach may not standardised promise of quality
be feasible. rates were set of healthcare, ren-
“This would dering healthcare
require additional setups financially
time to initiate the exercise unviable”, the government
and proceed further as it shall said. The centre’s affidavit also
be both manpower and time emphasised that fixation of
intensive”, the ministry said in rates may lead to serious issues
its response. like rendering healthcare
This move to hold consul- setups financially unviable
tations with states comes after and many other players may
the Supreme Court in jack up the prices. It may also
February 2024 had directed render the healthcare sector
the Centre to specify standard uncompetitive considering
rates for private hospitals, in the economic dynamics and
consultation with states. interaction of market forces.
The apex court had also Other issues discussed at
warned against applying the meeting included the low
Central Government Health adoption rates of the Clinical
Scheme (CGHS) rates for treat- Establishments (Registration
ment services at private and Regulation) Act, 2010.
Rolled out across Punjab, Haryana,
HP, Uttarakhand, and Western UP
SURAJEET DAS GUPTA
New Delhi, 29 April
The 4G subscriber base of
state-owned telecom service
provider Bharat Sanchar
Nigam Limited (BSNL) has
reached 800,000 in the
initial launch phase across
North Indian regions of
Punjab, Haryana, Himachal
Pradesh, Uttarakhand, and
western Uttar Pradesh. This
follows the deployment of an
indigenous network devel-
oped in collaboration with
Tata Consultancy Services
Telcos step up
and the government’s Centre
for Development of
to stop illegal
Telematics (C-DOT), accord- sale of 6 GHz
ing to a senior Department of
Telecommunications WiFi routers
(DoT) official.
The official outlined a
more pragmatic road map for
BSNL's 4G deployment and
In a move that may widen
the gulf between telecom
operators and the illegal
the subsequent 5G launch. WiFi routers that run on the
"We expect the core of the lucrative 6 GHz spectrum
network to be installed in the band, being sold on e-
eastern, western, and south- commerce sites, telecom
ern regions by August. The industry body Cellular
nationwide rollout is sched- Operators Association of
uled to coincide with the fes- India has written to the
tival season, followed by the Department of
introduction of 5G services Telecommunication (DoT). It
within the next 12 months,” sought an immediate ban
said the DoT official, who did on the sale of all routers
not wish to be named. operating on the band. The
BSNL has installed over 6 GHz band represents the
3,500 4G towers and aims for largest block of unused
a full-scale commercial spectrum and is being
launch across India upon fought over by telcos and
reaching 20,000 towers. Last tech firms. This is due to its
May, Information significant potential for both
Technology and 5G connectivity and WiFi
Communications Minister expansion.
Ashwini Vaishnaw had said SUBHAYAN CHAKRABORTY
the company was aiming to
secure 100 million 4G cus-
tomers within 12 to 24 with operations in New Delhi
months, alongside its plans and Mumbai, together had
to erect 100,000 towers 86.9 million subscribers, with
nationwide. less than one per cent of them
However, the rollout has utilising 4G services — a mar-
faced delays amid challenges ket share of 7.95 per cent. This
and some teething troubled figure indicates a decline
with the first domestically from a previous subscriber
built network. Though DoT base of 90-100 million. In
officials were earlier eyeing a February last year, the com-
5G launch by the end of the pany held a 9.36 per cent
year, this ambitious plan has market share, with 94.1 mil-
now been deferred to the lion subscribers.
end of next year. Amid concerns over
BSNL’s private-sector peer
Reliance Jio, meanwhile,
the shrinking subscriber
base, the BSNL Employees
has nearly completed its 5G Union has urged the
network expansion in just government to permit the use
over a year. of the 4G network of
As of February 2024, Vodafone-Idea — in which
BSNL and Mahanagar the government is a signifi-
Telephone Nigam Ltd cant stakeholder — to pro-
(MTNL), another state- vide immediate service
owned telecom company enhancements.
8 WORLD
>
NEW DELHI | TUESDAY, 30 APRIL 2024

G7 nations reach MUSK’S BIG WIN IN CHINA

deal to exit from
coal by 2035
Tesla clears full self-driving hurdle
REUTERS of a two-day meeting in Turin.
BLOOMBERG
US opens probe into
29 April
A STEP CLOSER
29 April One source told Reuters
Ford’s hands-free
E
earlier that diplomats from the lon Musk’s quick visit to
n Tesla calls its driver assistant Model Y and 3
driving technology
Energy ministers from the G7 nations - Italy, the United China paid immediate div-
Group of Seven (G7) wealthy States, Britain, France, idends, with Tesla Inc. features Autopilot or FSD but cars made it
countries reached a deal to Germany, Canada and Japan - receiving in-principle approval says they do not make its onto a top
shut down their coal-fired discussed the issue until late from government officials to vehicles autonomous and Chinese auto The US auto regulator said on Monday it has
power plants by 2035 at the on Sunday, before the start of deploy its driver-assistance system they require active driver association's opened a preliminary investigation into Ford
latest, in a significant step the ministerial gathering. in the world’s biggest auto market. supervision list of 76 car Motor's hands-free driving technology
towards the transition away The agreement marks a sig- The firm was granted the models found BlueCruise after being informed of two incidents
from fossil fuels. nificant step in the approval under certain conditions, n Tesla has been offering FSD in to be compliant with involving Mustang Mach-E cars that collided
“We have an agree- Italian direction indicated according to a source, who asked restriction in China due to data data security requirements declining EV sales by with stationary vehicles.
ment to stop using diplomatic last year by the COP28 not to be identified because details security issues accelerating its diversification The National Highway Traffic Safety
coal in the first half of sources said United Nations cli- of all the criteria aren’t clear. Tesla n Enabling FSD in China would towards autonomous Administration’s Office of Defects Investigation
2030’s... it is an his- a technical mate summit for a did manage to clear two of the
n In a sign of progress, Tesla’s provide a buffer to Tesla’s technologies (ODI) opened the evaluation to investigate
torical agreement,” deal had transition away from most important hurdles: reaching BlueCruise, which provides partial driving
Britain's minister for been reached fossil fuels, of which a mapping and navigation deal automation with the expectation that the driver
Energy Security and coal is the most pol- with Chinese tech giant Baidu Inc, on the status of its attempt to with the country’s top-level map- Tesla has been using Baidu for in- actively supervises performance. Both collisions
Net Zero Andrew Bowie told luting. “It helps accelerate the and meeting requirements for how secure regulatory approval. ping credentials that can be car mapping and navigation occurred during “nighttime lighting
Class CNBC according to a shift of investments from coal it handles data-security and pri- applied to driver-assistance func- since 2020. conditions”, and each resulted in at least one
video posted on X. to clean technology in particu- vacy issues. Tesla-Baidu team-up tions — will allow Tesla to tap the Getting the green light for FSD fatality. ODI’s investigation of the incidents
Italian diplomatic sources lar in Japan and more broadly Tesla didn’t immediately Teaming with Baidu — one of Chinese company’s lane-level in China might help Tesla claw confirmed BlueCruise's engagement in each of
said a technical deal had been in the whole Asian coal econ- respond to requests for comment about only 20 qualified suppliers navigation and mapping services. back some lost ground. the vehicles right before the collision. REUTERS
reached. omy, including China and
The accord will be included India,” Luca Bergamaschi, co-
in the G7 energy ministers’ founding member of Italian
final communique to be climate change think-tank
released on Tuesday at the end ECCO, said on X. Pro-Palestinian Apple’s iPad OS
protests roil
IN BRIEF US campuses
subject to tough
UK’s new ‘world first’ laws AGENCIES
29 April
tech rules: EU
crack down on hacking Protests are roiling college campuses REUTERS forms. The European execu-
All internet connected smart devices will be across the US as upcoming graduation 29 April tive's decision followed an
required to meet minimum security standards ceremonies are threatened by disruptive investigation launched in
under what the UK government has dubbed as demonstrators, with students sparring Apple’s operating system for September last year. Apple’s
“world first” laws, effective from Monday to over Israel’s military offensive in Gaza. iPads has been designated as operating system iOS, its
protect consumers and businesses from hacking Many campuses were largely quiet a gatekeeper under the bloc's browser Safari and its App
and cyber-attacks. Manufacturers will now be over the weekend as demonstrators stayed landmark tech rules by EU Store were designated gate-
banned from having weak, easily guessable default by tents erected as protest headquarters, antitrust regu- keepers last year.
passwords like “admin” or “12345” and if there is a common although a few colleges saw forced lators because of The Commission
password, the user will be prompted to change it on start-up. The removals and arrests. Many students are its importance to Apple has six said Apple’s busi-
new laws are part of the British government’s GBP 2.6-billion demanding their universities cut financial business users, the months to ness user numbers
National Cyber Strategy to protect and promote Britain online. PTI US Secretary of State Antony Blinken attends a joint ministerial meeting of the ties with Israel over the large-scale European ensure its tablets exceeded the
GCC-US Strategic Partnership to discuss the humanitarian crises faced in Gaza, in operation in Gaza it says was launched to Commission said comply with quantitative thres-
Saudi Arabia on Monday PHOTO: REUTERS stamp out the militant Palestinian group on Monday. raft of measures hold by eleven
China’s top Covid vaccine Hamas. Protesters on both sides of the
rancourous debate shouted and shoved
Under the under the EU’s
Digital Markets flagship Digital
times, while its
end user numbers
scientist expelled for graft
China’s top scientist, who developed the first inactivated COVID-19
Israel truce proposal each other during duelling
demonstrations Sunday at the University
of California, Los Angeles. The university
Act which came Markets Act
into force this year,
22 services owned
were close to the
threshold and
were predicted to
vaccine at the height of the pandemic in the country in 2020, has
been dismissed from Parliament for alleged corruption. Yang
Xiaoming, the chairman of China National Pharmaceutical Group’s
‘extraordinarily stepped up security after “some physical
altercations broke out among
demonstrators”, Mary Osako, vice
by Apple, Alphabet’s Google, rise in the near future. It said
Microsoft, Amazon, Meta both business users and end
Platforms and TikTok owner users are locked into iPadOS
vaccine subsidiary China National Biotec Group (CNBG), has been chancellor for UCLA Strategic ByteDance have already been because of its large ecosystem.
stripped of his membership in the National People’s Congress
(NPC) due to serious discipline and law violations, official media
reported here on Monday. The charge of serious discipline and law
generous’: Blinken Communications, said.
Amid the ongoing protests, anti-Israeli
protesters at Harvard University raised the
labelled gatekeepers which Apple has six months to
control access to their plat- comply with the DMA.

violations is a common euphemism for corruption under the BLOOMBERG Palestinian flag at the Ivy League School in
ruling Communist Party of China (CPC) disciplinary practice. PTI 29 April THE PROPOSAL a spot reserved for the American flag.

US Secretary of State Antony Blinken

n Deal to accept the release of fewer
EU to probe Meta’s
PHOTO: SCREENGRAB X@WAR WATCH

than 40 of the roughly 130 hostages

Solomon Islands’ pro-China
leader exits PM race
Solomon Islands pro-Beijing Prime Minister
Manasseh Sogavare on Monday withdrew from
the contest to remain head of the strategically
important South Pacific island nation's
government following general elections two
weeks ago that are central to the US-China
rivalry in the region. Sogavare has been re-
elected to the parliament.
Scotland’s first Muslim
leader Yousaf resigns
Humza Yousaf, the Pakistani-origin Scottish
National Party (SNP) leader who took over as
Scotland’s first Muslim leader in March 2023, on
Monday announced his resignation after days
of political turmoil for the devolved SNP-led
government. He had ended a power-sharing
agreement with the Scottish Green Party last
week amid growing policy differences. AP
urged leaders of the Hamas militant
group to quickly reach a decision on
Israeli conditions for a temporary cease-
fire, a move that could help bring an end
to fighting in Gaza.
Israel has been “extraordinarily gen-
erous” with proposals made during talks
mediated by Qatar and Egypt to secure
the release of Israeli hostages held by
Hamas, Blinken said at a special event
of the World Economic Forum in Riyadh
AP on Monday. He wasn’t more specific
about the offer on the table.
The US diplomat travelled to the
region — his seventh trip to the Middle
East since the Israel-Hamas conflict began
in early October — to push for at least a
pause in hostilities under a temporary
cease-fire agreement. Hamas, designated
a terrorist organisation by the US and
European Union, is expected to respond
on Monday to the Jewish state’s latest
offer, Agence France-Presse has reported.
The US supports Israeli efforts to
defend itself and prevent future attacks,
and is determined to bring an end to the
n Hostages to be exchanged for
handling of Russia
freeing Palestinians jailed in Israel
nSecond phase of truce consisting
of a ‘period of sustained calm’
disinformation
current conflict, Blinken said. President Brussels is set to open a probe into Meta
Joe Biden’s administration has Platforms’ Facebook and Instagram as
repeatedly urged Israeli Prime Minister soon as Monday over concerns the
Benjamin Netanyahu to do more to pro- company is failing to do enough to
tect civilians of Gaza, while remaining a counter disinformation from Russia
staunch ally and supplier of arms. and other countries, the Financial
Israel may be willing to compromise
on the number of hostages freed in an
Times reported.
Regulators suspect that Meta’s mod-
initial phase of any deal, Israeli media
reported last week. Hamas had said it
eration does not go far enough to stop the
widespread dissemination of political advertising that risks
can’t free 40 women, elderly or sick cap- undermining the electoral process, the European Commission
tives as demanded in return for a six- is expected to say on Monday, according to the report, which
week cease-fire because it doesn’t have cited two people with knowledge of the matter.
enough hostages in that category. The commission, however, is not expected to single out
Blinken’s first stop in his latest trip to Russia in its statement and will only make reference to the
the region is Saudi Arabia, where the US Anti-Israeli protesters at Harvard manipulation of information by foreign actors, the Financial
is eager to see the forging of diplomatic University raise the Palestinian flag in a Times reported on Monday. The European Commission
ties with Israel. spot reserved for the American flag declined to comment. REUTERS

Putin didn’t order Navalny’s
death in February: US intel
BLOOMBERG
29 April
US intelligence agencies have found that
Russian President Vladimir Putin likely didn’t
order opposition leader Alexey Navalny’s death
at a prison camp in February, the Wall Street
Journal reported.
While the assessment didn’t dispute Putin’s
culpability for the death, it found that the timing
possibly wasn’t as intended by Putin, the report
said, citing people familiar with the matter. The
finding is broadly accepted within the intelli-
gence community and shared by several
agencies, including the Central Intelligence
Agency, the Office of the Director of National
Intelligence, and the State Department’s intel-
ligence unit, according to the report.
The mysterious death of Navalny, an anti-
corruption activist and Russia’s most prominent
opposition figure, at an Arctic prison in
February triggered a fresh round of tensions
between Russia and the West at a time relations
were fractured by the Ukraine conflict.
The death also sparked the biggest unau-
thorised protests since the February 2022 inva-
sion of Ukraine. The latest assessment was
based on a range of information such as classi-
fied intelligence and an analysis of public facts,
The assessment was based on classified
intelligence and analysis of public facts,
including the timing of Alexey Navalny’s
(pictured) death and how it overshadowed
Vladimir Putin’s re-election PHOTO: REUTERS
including the timing of his death and how it
overshadowed Putin’s re-election, the WSJ
report said. Some European intelligence
agencies have been told of the latest US view, it
said. Navalny fell sick during a walk at the
remote maximum-security prison camp in the
Arctic where he was last held, and medical staff
were unable to revive him, the prison authorities
said on February 16.
AI startups face rough financial reality check
Table stakes for small firms to compete are in billions of dollars. And even that may not be enough
CADE METZ, KAREN WEISE & TRIPP MICKLE
29 April
Call it the end of the beginning of the
AI boom.
Since mid-March, the financial
pressure on several signature
artificial intelligence startups has
taken a toll. Inflection AI, which
raised $1.5 billion but made almost no
money, has folded its original
business. Stability AI has laid off
employees and parted ways with its
chief executive. And Anthropic has
raced to close the roughly $1.8 billion
gap between its modest sales and
enormous expenses.
The AI revolution, is going to
come with a very big price tag. And
the tech companies that have bet their
futures on it are scrambling to figure
out how to close the gap between
those expenses and the profits they
hope to make somewhere down the
line. This problem is particularly
acute for a group of high-profile
startups that have raised tens of
billions of dollars for the development
of generative AI, the technology
behind chatbots such as ChatGPT.
TECH HURDLE
n This problem is acute for a group n Stability AI has laid off
of high-profile startups that have employees and parted ways
raised tens of billions of dollars for with its chief executive
the development of generative AI
n Anthropic has raced to close
n Inflection AI, which raised the roughly $1.8 billion gap
$1.5 billion but made almost no between its modest sales and
money, has folded its original enormous expenses
business
Some of them are already figuring out Unlike the iPhone, which kicked off than the amount they spent funding
that competing head-on with giants the last technology transition and 20,350 AI companies from 2018
like Google, Microsoft and Meta is cost a few hundred million dollars to through 2020. The challenges hitting
going to take billions of dollars — and develop because it largely relied on newer AI companies stand in
even that may not be enough. existing components, generative AI contrast to the early business results
“You can already see the writing models cost billions to create and at OpenAI, which is backed by $13
on the wall,” said Ali Ghodsi, chief maintain. The cutting-edge chips billion from Microsoft. The attention
executive of Databricks, a data they need are expensive and in short it has generated with its ChatGPT
warehouse and analysis company supply. And every query of an AI system has allowed the company to
that works with AI startups. “It system costs far more than a simple build a business charging $20 a
doesn’t matter how cool it is what you Google search. month for its premium chatbot and
do — does it have business viability?” Investors have poured $330 offered a way for businesses to build
While plenty of money has been billion into about 26,000 AI and their AI services with the technology
burned in other tech booms, the machine-learning startups over the that drives its chatbot.
expense of building AI systems has past three years, according to
shocked tech industry veterans. PitchBook. That’s two-thirds more ©2024 The New York Times News Service

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

ILLUSTRATION: BINAY SINHA

Volume XXXI Number 11
NEW DELHI | TUESDAY, 30 APRIL 2024

Building capacity
Cargo terminals will boost efficiency managed through the instruments of coercive state
power, may appear easier, if shortsighted. This is

T
he Ministry of Railways, as reported by this newspaper on Monday, is likely to be the trajectory on the ground.
looking to offer 200 Gati Shakti Cargo Terminals to private firms and Arab states have become complicit in this
freight operators. The move must be welcomed because it will not approach. Israel has so far not paid any price in its
only put railways land and related assets to better use but also improve relations with important Gulf and West Asian states,
including Egypt and Jordan and the UAE and
capability in the logistics sector. According to government estimates, the 200
Bahrain. This is despite the Arab street in all these
new terminals would need investments worth ~12,000-14,000 crore. The move, states becoming more and more agitated over the
in fact, will take the policy announced in September 2022 forward. The Union inhuman suffering being perpetrated on their
Cabinet had then approved a policy on long-term leasing of railway land for Palestinian brethren by Israeli forces in Gaza and
activities such as cargo handling and building public utilities. The policy includ- the West Bank. There is growing moral outrage in
ed the plan to build 300 Gati Shakti Cargo Terminals over the next five years. many other parts of the world. In India, however,
The policy broadly enables long-term leasing of railway land for building the expressions of sympathy for the Palestinians,

India’s West Asia

cargo-related facilities for up to 35 years for 1.5 per cent of the commercial an unwavering constant since India’s independence,
has been discouraged. India hopes that it will be
value of the land per year. The allocation is made through competitive bidding
able to persist with its successful, simultaneous pur-
and the development of cargo terminals is estimated to generate 120,000
suit of mutually profitable relations with both Israel
employment opportunities. The railways plans to start the bidding for the 200 and the Arab states. It has not been forced to choose

security dynamics
cargo terminals as soon as the process for the first 100 such terminals is com- sides so far. Given India’s stakes in West Asia, its
pleted. As things stand, 77 such cargo terminals have been commissioned with current policy may appear the most optimal. It is
an investment of ~5,400 crore. Some big names operating such facilities include serving India’s energy security by maintaining
the Container Corporation of India, Adani Group, JSW Group, Indian Oil, and friendly relations with the oil kingdoms. It is pro-
Nayara Energy. moting the welfare of some six million Indians who
The policy of building 300 cargo terminals over time will yield multiple live and work in the region. And it is creating eco-
benefits for the railways and the economy as a whole. The railways will not be Despite its stakes in the region, its policy doesn’t aim nomic and commercial opportunities for an expand-
ing Indian economy. The strong partnership with
incurring additional expenditure in this area. The successful bidders for these for long-term regional stability Israel is bolstering India’s defence capabilities and
terminals will bear the cost of building the facility and take the business risk, helping it to deal with international terrorism. In

W
while the railways will have the ownership. Further, improved logistics will e are now in the seventh month of the
help generate additional cargo traffic for the railways and boost its revenue. Israel-Hamas war, and there is no end in
According to estimates, every new cargo terminal would have the potential to sight. There is no end in sight because the
increase volumes by 1 million tonne per year, yielding an additional flow of political survival of the Israeli leader, Benjamin
about ~100 crore. Netanyahu, rests on the continuation of the war and
It is often argued that the Indian Railways has plenty of surplus land, which its escalation into a regional conflict. The aerial
bombing of the Iranian consulate in Damascus on
is not being used efficiently. Building cargo facilities will certainly improve the
April 1 and the killing of several senior officers of
efficiency of rail assets. Better cargo facilities — depending on various value- Iran’s Revolutionary Guards present on the premises
added services being provided at such facilities — should encourage internal was a calculated and cynical attempt to provoke
trade in the country, improving efficiency and boosting ease of doing business. Iranian retaliation.
High logistics cost is often said to be one of the big constraints in doing business While further escalation has
in the country. Although road infrastructure has improved significantly over been contained, thanks to US inter-
the past few years, cargo movement by rail is more cost-efficient, provided it is vention and Iranian restraint, atten-
managed well and last-mile connectivity is not a problem. With the development tion has been diverted from Israel’s
brutal and horrific decimation of
of 300 cargo terminals and the design of the Gati Shakti platform, which reflects
Palestinians in Gaza and the grow-
all infrastructure development, some of the long-standing constraints will be ing attacks on Palestinians living in
eased. The Indian Railways has lost much of its cargo business to the road sec- the occupied West Bank. The illegal
tors, largely due to its own inefficiencies and partly because of significant Israeli settlements are expanding in
improvements in road infrastructure. However, the development of cargo ter- an area that could become a future
minals and substantial government capital expenditure to improve the railways’ Palestinian state. The frenetic SHYAM SARAN
overall capacity, in general, should help it regain the lost freight traffic, which expansion of these settlements and
will also help India contain carbon emissions. the dispossession and forced evic-
tion of the Palestinians living on their ancestral
lands, make any two-state solution chimerical. Its
revival and more energetic espousal in the wake of
two-state solution have simply evaporated. It is no
longer possible to just dial back to the Oslo Accords
of 1993 which conceived that outcome in very dif-
ferent circumstances. It was never pursued with
seriousness by the main stakeholders, Israel and the
Palestine Liberation Organization, then headed by
the legendary Yasser Arafat. The US, in its unipolar
moment of unconstrained power after the end of
the Cold War, failed to deliver when the moment
was ripe. A strategic opportunity does not lie on the
shelf to be picked up at will.
The US perspective changed after
the September 11 terrorist attacks in
2001. In its wake, anti-Islamic senti-
ment became and remains pervasive.
There was no longer any pressure on
Israel to deliver its part in the Oslo
Accords. The two-state solution is
now beyond its expiry date. It is dis-
honest on the part of the US, the Arab
states and the international commu-
nity represented by the UN, includ-
ing India, to peddle it once again as
a solution to the current conflict,
knowing full well that the conditions that had once
made it a bold and realistic initiative no longer exist.
The US no longer enjoys the agency it possessed
the aftermath of the Israel-Hamas war and China’s
open support for the Palestinians, Israel has become
openly hostile to China. It has initiated a dialogue
with India on how to counter China both in the West
Asian region and beyond. A new Israeli think tank
has been set up to focus entirely on China and its
activities world-wide. This creates another oppor-
tunity for India in the region and beyond.
India has maintained good relations with Iran
but it has remained well within the limits set by the
US, for example, on oil purchases. These have dimin-
ished over time. The contrast with its insistence to
continue and expand its oil purchases from Russia,
despite US sanctions, is telling.
West Asia is India’s strategic flank. Any political
unrest, armed conflict, or disruption of energy sup-
plies from the region, can have major adverse conse-
quences for India. This includes the festering
Palestinian issue. Maintaining good relations with all
major stakeholders in the region is a no-brainer, and
India has pursued such relations with deftness. What
it has not been able to do is to exert any significant
influence in promoting longer-term peace and sta-
bility in the region, which alone can safeguard its
interests. India has the right mix of distance and prox-
imity and a network of strong bilateral relationships
that are assets in pursuing a coherent regional strategy.

Tone and substance the Gaza War notwithstanding, no serious analyst

Subtle shifts in the texture of Sino-US ties
would consider it a realistic possibility, even more
so after the October 7 Hamas terrorist attack on Israel
and the still unfolding humanitarian disaster in
Gaza, for which Israel is directly responsible. The
in the early 1990s. It believes, with Israel, that instead
of seeking an admittedly difficult and complex polit-
ical solution to the Palestinian issue, managing its
Without such a regional strategy, India’s West Asia
policy will remain reactive, focused on dealing with
emerging contingencies rather than in shaping the
security consequences may be a more realistic path region’s security and economic architecture.
forward. We have seen this in longstanding conflicts

T
he charm offensive by the United States (US) as it seeks to mend relations minimal mutual trust and confidence between the
with China appears to be gathering momentum since President Joe Israelis and Palestinians required to enable a viable
Biden met his Chinese counterpart Xi Jinping at a summit in Woodside,
California, in November last year. The official readouts of that meeting
suggested that both leaders candidly outlined their differences on trade and geopol-
itics and agreed to keep talking. The upshot of this has been hectic diplomacy on
both sides, mainly to stake out their positions on a range of differences. This much
was clear in a rare visit by China’s foreign minister Wang Yi to Washington after a
Behind Crotonville’s demise
T
gap of five years in October last year and US Secretary of State Antony Blinken’s wo weeks ago, when GE announced it was
visit to Beijing late last week. This was Mr Blinken’s second in less than a year and selling off Crotonville, its iconic centre for
follows the passage of an aid package for Taiwan and a stiff deadline by US author- leadership training and learning, it sparked
ities to Chinese company ByteDance to sell its stake in TikTok, the popular short off an interesting debate about the future of leader-
video service. ship development.
At its peak, especially during the Jack Welch era,
The substance of Mr Blinken’s meetings with Mr Xi and Wang Yi was to under-
Crotonville was accorded a preeminent status for
line US discomfiture with Beijing’s “no limits” partnership with Moscow, on the churning out a steady stream of highly capable, global
basis of which China supplies Russia many critical and sophisticated components leaders who not only helmed GE’s multiple businesses
(though no lethal weaponry) to feed its military-industrial complex. Several retal- but later were among the most sought-after chief exec-
iatory moves have been made as a result of these geopolitical alignments. In August utive officer (CEO) picks for US corporations.
last year, the US curbed investment in the Chinese semiconductor, quantum com- The top-notch faculty at Crotonville, including
puting, and artificial intelligence sectors, which, the administration argued, could Noel Tichy, Ram Charan, Vijay Govindarajan, to
have military applications. In turn, China slapped export restrictions on two key name just a few, along with GE’s top
minerals essential to semiconductor production — gallium and germanium — leaders such as Welch, Gary Reiner,
Bill Conaty, Jeffrey Immelt and
which has caused serious problems for Silicon Valley’s semiconductor industry.
Susan Peters, together delivered
Many of the issues discussed were repeats of Mr Blinken’s June 2023 visit, but highly curated and sought-after cus-
it is concerns over Chinese trade practices that form the heart of the troubled rela- tom programmes on leadership to
tionship. This was underlined by a message communicated by Treasury Secretary generations of early-stage leaders,
Janet Yellen on her second visit to China earlier this month when she euphemisti- mid-tier and senior managers from
cally highlighted China’s “overcapacity” in key industries. Taken together with a all over the world.
cordial phone call between Mr Xi and Mr Biden in the days preceding Ms Yellen’s For any high-performing GE
visit, such energetic diplomacy has indubitably established a positive tonality in manager, it was a privilege to not
superpower relations.
just be invited to attend a leadership
programme at Crotonville, but also
STRATEGIC INTENT
As yet, both countries appear to be sticking to their red lines; but, given the an opportunity to engage with top INDRAJIT GUPTA
complexity of superpower diplomacy, the positives are being seen in the willingness business and thought leaders, both
to communicate rather than in concrete policy moves. Certainly, Mr Xi, seeking to formally in the classroom and informally over din-
stoke faltering economic growth, has gone out of his way to woo US industry, ner. It allowed them to switch off from the day-to-
which, however, may now find investing in the country too risky. This follows day running of the business to reflect on the future,
raids last year on the officers of three US market research firms and consultancies. and present to senior leaders, often leading to hand-
In March this year, Mr Xi met US business leaders in Beijing to underline the picked future roles. Most of all, Crotonville repre-
importance of mutual trade ties and counter the narrative of a Chinese economy sented a huge commitment from GE’s top leadership
that systematic leadership development, talent man-
struggling to recover from the Covid shock. Mr Xi reminded Mr Blinken that 2024
agement and career development made unques-
was the 45th anniversary of the establishment of diplomatic relations between tioned business sense. After all, the principle was
the US and China and warned against “vicious competition”. It is probable that that leaders helped build culture and culture was in
both countries are waiting for the verdict at the hustings in November to decide turn shaped by leaders willing to pay it forward.
the next course of action. If Mr Biden returns to power, Beijing may resume the To be sure, in November 2021, ever since GE
momentum. Should Donald Trump return to the White House, tensions could decided to carve up its three global businesses —
increase again. aviation, healthcare and energy — the writing on
the wall was already apparent for Crotonville. As its
in other parts of the world. Treating a conflict as a
security challenge rather than a political one, to be
first outsider to be made CEO, Larry Culp may have
viewed the economics of running and maintaining
an expensive 60-acre campus in upstate New York
with substantial overheads as a needless expense,
especially since he would not have had the emotional
linkages to GE’s past heritage and legacy.
However, its demise does raise several larger
questions about how modern day global corpora-
tions may be run, how future leaders are likely to be
groomed for global careers, and even how corporate
cultures could be shaped.
The biggest among them is the short-termism that
has gripped corporate America and its obsession with
shareholder value creation. That
virus has, in turn, percolated down
to markets around the world, includ-
ing India. Crotonville inspired Four
Acres at Unilever UK and Singapore
and Gulita at HLL, Tata’s manage-
ment training centre in Pune, AV
Birla group’s Gyanodaya, and many
others, including SBI, Infosys, L&T,
and Bharat Petroleum, to establish
their own versions of corporate uni-
versities. The fact is that a growing
number of CEOs view leadership
development as an expense that
needs to be curbed and are unwilling
to underwrite what is clearly a high gestation project.
At one level, there is a reason to pause. Corporate
executive tenures are shortening, corporate longevi-
ty itself is dropping alarmingly, and there has been
a huge expansion in the leadership development
“industry”, with universities, business schools and
management consulting firms stepping up to the
plate. With the growth of emerging markets, the
need for a large physical space in the US or Europe
has become somewhat harder to justify.
Yet there are two different points of view that
merit evaluation. One, while the US corporate world
has been swept up by this wave of transaction-driven
culture, there are those that believe that Asian com-
panies would do well to instead preserve their rela-
The writer is a former foreign secretary and an honorary
fellow, Centre for Policy Research
tionship-based cultures and invest in building lead-
ers for tomorrow. The fact that there is robust
demand for GE and Unilever HR leaders across India
and China is a signal. Besides, a large corporate uni-
versity with the pomp and show of a Crotonville or
Four Acres may not be necessary. But GE could have
considered turning Crotonville into a part revenue-
generation engine, based on the utilisation the lead-
ers were willing to commit.
Two, accepting high leadership churn and over-
relying on hiring talent laterally can sometimes
become a self-fulfilling prophecy. The more you move
away from a structured approach to designing careers,
the weaker the glue that binds and sustains corporate
cultures becomes. Many companies routinely nomi-
nate some of their top leaders to high badge value pro-
grammes at Harvard, Wharton and Stanford. However,
while it is seen as a huge perk, there is a question mark
about whether they make any real difference to the
organisation when the executive returns. As at
Crotonville, the concept of “in TAC teams” working
on specific challenges, developing a shared under-
standing of how to solve them, is a powerful way to
drive relevance, context and meaning. More often than
not, these action learning projects, conducted in-house,
help deliver business results that not only cover their
costs but also yield significant returns.
Most firms struggle to find the right balance
between experiential or applied learning and con-
ceptual learning. Above all, it is about top leaders
demonstrating commitment to the process of lead-
ership development. At Gulita, that commitment
was visible from successive generations of chairmen,
say HUL managers, who went through the paces in
the eighties and nineties. By the next decade, how-
ever, that commitment had begun to wane.
In the future, when major corporations think
about investing in culture and values, it remains to
be seen how much emphasis they will place on lead-
ership development in general and on building their
own in-house leadership academies.
The writer is co-founder at Founding Fuel

Net gains from the art of reinvention
ties and challenges that are yet to come.
She reflects on the turns she has taken
to reach where she is and despite hav-
ing come so far from where she started
— from being a 17-year-old who was
passionate about fashion trends and
BOOK REVIEW blogging to an international icon in the
fashion industry to a successful busi-
NANDINI BHATIA nesswoman — she believes in the beau-
ty (and power) of the climb instead of
and protest the (presumable and often
unintended) arrogance of the rich
and influential.
Although Ms Minawala checks all
these boxes, her book is more about the
person than the profession. It is a story
of success, a journey lived between
successes and failures, and of dealing
with both in and beyond her
professional capacity. A humble
moving on to the next thing.
When an internship boosted her
confidence in analysing fashion trends,
she learnt how to code and started her
own blog at a time when the power of
the internet and its
users were limited.
When shifting to
Belgium after her
marriage affected her
can be done, defying all doubt and
emerging triumphant. Now at the cusp
of motherhood, she again chooses to
make difficult decisions instead of
You ride it out. You reinvent yourself.
You move to Version 2.0. And then
to 3.0 and beyond.”
With her lucid writing and relatable
avoiding them. The secret of “Masoom takeaways, Ms Minawala has
Magic” appears to lie in remaining successfully translated her life’s hard
undaunted in the face of uncertainty, work into an accessible guide. As we
rejections and criticism; being turn into a truly global generation,
relentless; and focusing one’s energy on memoirs/ lifestyle books like hers will
finding solutions help netizens navigate the alternative,
SHE’LL NEVER MAKE
IT: My Journey instead of feeling
stuck and burdened
untraditional careers and businesses on
the internet, and inspire them to build a
from Doubt to
Dominance by the problems. brand for themselves. The book is also a
Author: Masoom She’ll Never Make lesson in dealing with the growing
Minawala with

T
he age of the internet has thrown
up a host of new professions —
bloggers, content creators,
entrepreneurs and influencers. And no
one personifies these new opportuni-
ties better than Masoom Minawala. She
is all four — a blogger, a content creator,
an entrepreneur and an influencer; or
perhaps even more, if we count her
styling quotient and adaptability in
general. In her book She’ll Never Make
It, she looks back at the highs and lows
of her 12-year-old career and, at the
same time, looks forward to opportuni-
the view at the peak.
But before we get ahead of ourselves,
it is important to clarify that this is not a
typical biography or a self-help guide. It
is not about the changing nature of the
Cannes Film Festival where more and
more influencers enter the field and
from where Ms Minawala herself started
building her brand name on an
international stage; neither is it about
the looming financial crisis or the body-
image issues that the influencer
economy enables; nor does it raise the
need to act on Robin Hood-like values
introspection of the mistakes made and
an (almost incessant) acknowledgement
of the privilege she comes from. This
repetition seems to be a measure of
caution in the age of cancel culture.
Ms Minawala comes from a
traditional Gujarati business family,
brought up among enterprising minds
and with the business value of
ambition. Her go-getter attitude from a
young age has enabled her to move
upward and onward in life. She
believes in turning the lemons life
gives her into pickle; in getting up and
ability to reach the
Indian diaspora, she
found alternatives to
staying relevant and
travelled back and forth
to London for shoots.
When she found herself
at the bottom of the social-networking
chain, she wrote tirelessly to designers
and brands, built connections and
showed up at events as much as she
could. When the viability of an online
career was questioned by friends and
family, she proved over and over that it
It is Ms Minawala’s sourness of commenters and trollers
Aditi Shah story of constantly online facilitated by the anonymity that
Bhimjyani
Publisher: realigning her goals the internet provides. Her insights are
Juggernaut Books in life and the means validated by her decade-long
Price: ~399 of achieving those experience in the industry. She has in
goals. She writes: the past used her reach to support
“The secret to Indian designers, small businesses and
success is the ability to ride out a stormy women in business. She continues to
wave — whether it is because of an error use it sensibly and this book is one
you made or a bad surprise that was example. Overall, a teachable moment
thrown at you. There are always failures, delivered well.
mistakes, setbacks, misses, changes and
bad days. But you obviously don’t stop. The reviewer is an independent feature writer
You adapt, learn and course-correct. @read.dream.repeat