THE HINDU DELHI SUNDAY, MAY 19, 2019 BUSINESS 13 EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
IN BRIEF INTERVIEW | ARUNA SUNDARARAJAN Promoter Gangwal does not ‘U.S. curbs on Huawei may want more control, says Indigo not delay the rollout of 5G’ Budget carrier, however, acknowledges diff erences between promoters
SPECIAL CORRESPONDENT signed at the time of the 5G rollout to be priority for new govt.: Telecom Secretary NEW DELHI company’s Initial Public Of Mini Tejaswi IRDAI for nonexclusion Budget carrier IndiGo late fering in October 2015 and is <> It is a matter of time By very nature of the need of critical illnesses Saturday evening acknow set to expire four years after When the new government before we start to provide ubiquitous con NEW DELHI ledge that there were diff e it went public. assumes offi ce, it will have a seeing 5G networks nectivity in a telecom net Insurance regulator IRDAI is rences between its promo The CEO tried to assure plethora of issues to handle in the country work, the aim is always to mulling barring insurers from ters Rahul Bhatia and Rakesh employees, shareholders on a priority basis. Spec make the subscriber base as excluding several critical Gangwal but unequivocally and customers that the com trum allocation for 5G fi models. large as possible. India’s illnesses such as mental rejected the view that the lat pany would work towards gures prominently in the list, large market is a key factor problems and genetic ter wanted to acquire greater bridging its internal fi ssures. says Aruna Sundararajan, What could be the that will drive 5G. diseases from health Telecom Secretary and immediate 5G-related insurance policies. With the control in the company. “We all know, that in any Chairman of the Telecom market opportunities? What kind of newer digital increase in the number of The clarifi cation was post strong and wellmanaged ■ opportunities will 5G bring? health insurance companies ed on the BSE’s website and company, there will always Commission. Excerpts: It is estimated that the im ■ as well as products, IRDAI was issued by the airline’s be diff erences. mediate opportunity would From the forecasts and proposed that health insurers CEO Ronojoy Dutta. Mr. Dut “And, yes, there may be Will the U.S. ban on Huawei be for rollout of eMBB (en successful trials abroad, 5G adopt a uniform approach ta quoted Mr. Gangwal as diff erences currently on cer delay global roll-out of 5G? hanced mobile broadband) technology is proclaimed to while incorporating saying, “there is no interest tain matters but the compa ■ I don’t believe it will. The capability to deliver high have the potential of a gener exclusions in the health or desire whatsoever on the ny has a great track record of U.S. is already well advanced speed services as standards al purpose technology consi insurance products. PTI part of the RG (Mr. Rakesh Air pocket: The diff erences between promoters are over resolving issues and coming in terms of 5G readiness, and for other capabilities such as dering its high throughput, Gangwal) group to take con making management appointments * . V.V. KRISHNAN out ahead.” so are countries like Japan, uRLLC (ultrareliable low la near realtime and high qual Reliance Capital to raise trol of the company.” The airline, which enjoys Korea and Sweden which are tency communication), ity services. ₹ 10,000 cr. via asset sale which, in any case, expires family and his entity held a market share of 47%, em leading the 5G rollout. Each MMTC (massive machine Health, education, indus NEW DELHI SHA expires in Oct. this October.” close to 37%. The diff erences phasised that it was commit country, including India, type communication) that trial automation, transporta Cashstrapped Reliance Referring to media reports As per the shareholding are believed to be due to an ted to “a rapid buildup of will, of course, have to eval are likely to be ready only by tion, assisteddriving, securi Capital on Saturday said it uate and assess what is re the end of 2020. ty and surveillance, expects to raise ₹ 10,000 about the two promoters ap pattern declared by Inter imbalance in the rights en airline connectivity within quired from their own secur There will be a signifi cant consumer experience and crore by selling assets and proaching law fi rms over the globe Aviation Ltd., IndiGo’s joyed by the two promoters India and to international cutting down its debt by shareholding agreement parent, as of March 31, Mr. in making board and man destinations.” It quoted its ity perspective and plan learning on 5G rollout and entertainment are quoted as about 50% in the current (SHA), Mr. Gangwal was qu Bhatia, his family and his agement appointments, board as saying, “IndiGo’s their roadmaps accordingly. technology aspects by 2020. potential sectors for 5G. fi scal. The company said it oted as saying, “I am placing holding company Interglobe which are tilted in favour of strategy in terms of growth Current off erings of OEMs New kinds of services, bu had been working to ensure on record that the RG Group Enterprises held about 38% Mr. Bhatia. and cost leadership remains Will the spectrum allocation on 5G are only candidate sinesses, new streams of re timely debt repayments. It is stands by the current SHA stake, while Mr. Gangwal, his The agreement was unchanged.” for 5G be a priority topic for technologies as 5G standards venues are projected for in the process of monetising the new government? are yet to get fi nalised for all both operators and enter its 42.88% stake in Reliance ■ Yes, spectrum allocation is capabilities. prises in the years to come Nippon Life Asset an important area for the go as per market reports. Management which is valued vernment to enable new Does India have the right PTI RBI now uses divergence to compel at over ₹ 5,000 crore. technologies such as 5G, ecosystem and pricing yet for Industry experts and telcos which are estimated to have 5G roll-out? such as Vodafone Idea argue Fortis Healthcare arm to signifi cant positive impact ■ We are in a much better that India has a serious offl oad stake in MSCL banks to improve their loanloss ratios on crosscutting industry position than we were dur shortage of capex and NEW DELHI verticals and services. Consi ing 4G introduction in terms therefore, it should postpone Fortis Healthcare said its Delayed NPA recognition also amounts to underreporting dering the positioning of 5G of data appetite, usage of 5G roll-out for some years. subsidiary Fortis Healthcare as a general purpose tech apps, ICT literacy, broad What are your views? International will sell its MANOJIT SAHA vergence was one of the rea this resulted in higher provi nology (GPT), it is indeed an band penetration etc. ■ Yes, VodafoneIdea has a entire stake in Medical and Mumbai sons for them to report loss sion coverage ratios (PCR). immediate priority to pro The 5G high level task view on its readiness on 5G Surgical Centre Ltd. (MSCL). At least three public sector es for the quarter. Central Bank of India’s vide necessary enabling en force (HLTF) has been con rollout. Operators may be “Fortis Healthcare banks that have reported Interestingly , divergence provision coverage ratio had vironment, including spec stituted to strengthen the assessing the demand for International Ltd. has earnings for the January was identifi ed not because improved to 76.6% as on trum, to enable early digital communication eco capital investment in light of entered into a share March quarter have men these banks hadn’t classifi ed March 31, 2019, from 63.31% adoption of new technolo system in the country. Des 5G rollouts announced in purchase agreement with tioned ‘divergence’ in bad the loan as nonperforming a year earlier, while Union CIEL Ltd., CIEL Healthcare gies to drive the ‘digital agen pite the fact that the telecom other countries and also tak Ltd. and MSCL, for sale of loan recognition and have assets (NPA) but because Bank’s improved to 66.24% da’ in the country. network deployment is capi ing note of the plans of other the entire shareholding made provisions for such they were late in classifying from 57.18%. Indian Bank’s talintensive in nature, the operators in the market. (28.89%) held by FHIL in loans. them. provision coverage ratio was Can India meet its own 2020 Indian market has always de New technology rollout MSCL,” it said in a fi ling. PTI Divergence takes place 65.72%. In 2009, RBI had roll-out deadline for 5G? monstrated cost leadership. in a telecom market is conta when the Reserve Bank of In NPA classifi cation mandated a 70% provision ■ India has been a prudent gious and I expect the IL&FS arm appoints dia (RBI) fi nds that a lender Since the date of classifi ca coverage ratio, which result and cautious market. launch by one player will see Kazim Raza Khan as CEO has underreported (or not tion as NPA had been pushed ed in banks increasing their The 3G and 4G standards others roll it out as well. NEW DELHI reported at all) bad loans in a back, the banks had to make coverage. However, in April entered India as matured As you may see, the gap in IL&FS Engineering and particular year and hence higher provisioning due to er banks delayed in recognis 2011, the mandate was technologies. Telecom ser adoption from generation to Construction Company Ltd. asks the lender to make dis the ageing factor. In the fi rst ing the same. So, banks have withdrawn. vice providers in the country generation, that is, 2G to 3G said its board has appointed closures if underreporting is stage of NPA, which is the been asked to classify the ac are closely watching the 5G and 3G to 4G has been de Kazim Raza Khan as its chief more than 10% of bad loans ‘substandard’ category, 15 count as NPA on an earlier Provision coverage ratio rollout preparedness in glo creasing and it is a matter executive offi cer. “The board or the provisioning. 20% provision is required date, which means, increase With the asset quality of bal markets. of time before we start of directors have re Three staterun banks — and for next category, which in provisioning requirement banks starting to worsen They are also assessing seeing 5G networks in designated Mr. Khan as chief Union Bank of India, Indian is ‘doubtful’, a 40% provi due to ageing factor,” a top from about 20132014, the the demandpull factors in the country. executive offi cer of the Bank and Central Bank of In sion is required. offi cial from a public sector PCR level of banks has fallen company eff ective May 16, terms of usage cases. The The 5G HLTF’s ob 2019,” the company said in a dia — had reported diver “During the annual in bank said. sharply. operators are giving priori jective is to enable statement. Mr. Khan was gence while announcing the spection, RBI supervisors Some bankers said the Now, the banking regula ty for technology trials in the process appointed as the manager results. In all these banks, di pointed out that if one bank identifi cation was pushed tor has found a way to in partnership with OEMs to and the eco and key managerial vergence was spotted for the has identifi ed an account as back by two years in some crease the loanloss ratio enable them to learn net system in personnel of the company on fi nancial year 201718. NPA six months earlier, for cases. Since banks had to in without mandating any par work planning and us the coun December 24, 2018. PTI Higher provisioning for di example, then why have oth crease their provisioning, ticular level. agecase business try. ‘New U.S. immigration rules to benefi t Indian professionals with special skills’ However, visa applicants must be properly screened, says Kumar of IAICC Mini Tejaswi under the new scheme, visa rassments,” he cautioned. Bengaluru processing for spouses and As per a Washington DC Indian professionals with parents will be done at a fast based fact tank, Pew Re specialised skills will be the pace. search Center, during fi scal biggest benefi ciaries of U.S. Based on his interaction 2017, some 748,746 people President Donald Trump’s with the SMB (small and me were granted familybased proposed immigration poli dium business) community, permanent residency in the cy, said K.V. Kumar, chair Mr. Kumar further said, the U.S. Under employment man and CEO, Indian Ameri Indian business community based immigration (12%), can International Chamber in the U.S. was quite upbeat 1,37,855 people were given of Commerce (IAICC). about the proposed changes residency, 1,20,356 came un The IAICC represents over as it would increase the der refugees (11%), under six lakh small and medium scope for talent transfer bet others (6%) came 68,618 asy Indian or Indianorigin en K.V. Kumar ween the U.S. and India. lees and parolees and anoth terprises around the globe. ”India already is a huge er 51,592 people were given He insisted that the pro based green cards. That’s ov benefi ciary of U.S. visas and permanent residency under posed immigration scheme, er a fourfold increase from green cards. The U.S. will on diversity (5%). which will focus on a points the existing 12%. A large ly be more gracious and will “These new proposals, if based system that prioritises population of Indians, who ing to off er visas to eligible approved by the Congress, the admission of immigrants are currently on HIB visas Indians. The fake Michigan have the potential to dramat with certain education and are going to benefi t from it,” University kind of incidents ically alter the immigration employment qualifi cations, said Mr. Kumar who has have spoilt the reputation of landscape of the U.S. It is en would defi nitely help Indian worked with all U.S. Presi India. So, it is critical that go couraging that talent, skills professionals who are seek dents starting with Ronald vernments, companies and and expertise will be given ing U.S. visas/green cards. Reagan to Mr. Trump. educational institutions here preference over family,'' said “It proposes to consider Though family visas may do a proper screening of visa Sajai Singh, senior partner at 57% of immigrants for skill be cut to 33% from 66% now, applicants to avoid embar J. Sagar Associates. U.S.China trade tension may hit Baring PE Asia buys 30.5% in emerging markets, says IndRa NIIT Tech Special Correspondent kets, including India. This petitive depreciation in the MUMBAI could potentially disrupt the Indian rupee, failing which Press Trust of India The rise in trade tension bet demandsupply dynamics in the competitiveness of In New Delhi ween the U.S. and China the Indian markets, especial dian exports could be aff ect Baring Private Equity Asia could lead the latter to divert ly for products such as elec ed, IndRa said in a state (BPEA) has acquired 30.5% its exports to emerging mar tronic goods, iron and steel ment. Chinese exports stake in NIIT Technologies kets (EMs), including India, and organic chemicals. accounted about 18% of total Ltd. for about ₹ 2,627 crore. according to Indian Ratings A fall in Chinese exports U.S. imports in 2018, repre Last month, funds affi and Research (IndRa). to the U.S. could potentially senting 2.34% of the U.S. liated to BPEA had signed In the past, China has put downward pressure on GDP. Lower imports or a rise pacts to buy 30.5% in NIIT shown such a tendency and the Chinese yuan (RMB). A in the cost of imported Technologies from NIIT dumped its products at pre likely devaluation in the goods could stimulate infl a Ltd. and other promoter datory rates in many mar RMB could stimulate a com tionary pressures in the U.S. entities at ₹ 1,394 per share. CM YK