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SUNDAY, 29 SEPTEMBER 2019 12 pages in 1 section WORLD P8 WORLD P9 MUMBAI (CITY) ~10.00 VOLUME XIII NUMBER 28 HONG KONG PROTESTERS MARK SPIDER-MAN WILL KEEP 5 YRS OF ‘UMBRELLA’ MOVEMENT SWINGING IN MARVEL FLICKS

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FIVE-JUDGE BENCH CONSTITUTED TO HEAR Majority see 25-bprate PLEAS ON ARTICLE 370 RBI puts Lakshmi cut in monetary policy Vilas Bank under Inflation to stay within 4% target, say economists PCA framework PHOTO: KAMLESH D PEDNEKAR ANUP ROY T E NARASIMHAN PHOTO: PTI Mumbai, 28 September WHAT EXPERTS PREDICT Chennai, 28 September The Supreme Court on Saturday set up a Soumya Kanti Upasna Bhardwaj five-judge Constitution Bench headed by rate cut is almost certain in The Reserve Bank of India (RBI) has initi- Ghosh Kotak Mahindra Justice N V Ramana which will commence the October 4 monetary pol- 40 ated Prompt Corrective Action (PCA) State Bank of India Bank bps hearing from October 1 on pleas challenging icy review to lift economic 35-40 against Lakshmi Vilas Bank (LVB) on the Centre’s decision to abrogate provisions A growth, expect economists bps Siddhartha Sanyal Bandhan Bank account of a high level of bad loans, the of Article 370 that gave special status to and market participants at large, but lack of sufficient capital to manage risks, a Jammu and Kashmir. The Bench also the quantum varies from 15 basis Sameer Narang Madan 25 negative return on assets for two consecu- comprises Justices S K Kaul, R Subhash points (bps) to 40 bps. One of the 15 Bank of Baroda Sabnavis bps tive years, and high leverage, the Chennai- Reddy, B R Gavai and Suryakant. The Bench participants polled even predicts a Samiran Chakraborty CARE based lender said on Saturday. will examine the constitutional validity of pause. Economists, however, differ on Citibank Aditi Nayar ICRA The action came after an on-site inspec- the scrapping of the Article’s provisions and whether there will be room for further Saugata Bhattacharya Ananth Narayan tion, under the risk-based supervision, was the subsequent presidential orders on it. A cuts, especially after the recent tax Axis Bank SPJIMR carried out for the year ended March 31, The bank said PCA would not have any Bench headed by Chief Justice Ranjan Gogoi breaks given to the corporate sector, Harihar Krishnamurthy Anubhuti Sahay 2019. The regulator has advised the bank on adverse impact on its daily operations on August 28 had referred the matter to a which is expected to create demand FirstRand Bank Standard restrictions put in place and corrective steps five-judge Constitution Bench. 12 > and boost growth. Kaushik Das Chartered it needs to take. “The bank has taken note of FINANCIALS UNDER STRESS Besides, there is a nagging dis- Deutsche Bank Bank PAUSE (them) for necessary compliance, with comfort that the banking system has progress to be reported on a monthly basis Standalone data in ~ crore COMPANIES P3 not really passed on the 110-bp rate to the RBI,” it said. NII Other incomeNetloss DHFL proposes to convert cut since February to the customers, Gaurav Rupa Rege Soumyajit The bank said PCA would not have any Mar ‘18 120.5 38.3 -622.2 except perhaps for retail customers. 15-25 Kapur Nitsure 15 Niyogi adverse impact on its day-today operations, Jun ‘18 130.2 60.5 -123.9 2.3% of debt into equity Economists also say the present bps IndusInd L&T bps India including the acceptance and repayment of Sep ‘18 151.0 71.2 -132.3 Dewan Housing Finance (DHFL) has sought repo rate of 5.40 per cent should be Bank Finance Ratings deposits. “There are no restrictions on oper- Dec ‘18 138.8 61.1 -373.5 approval for conversion of 2.3 per cent adjusted back to the traditional sys- ations by depositors. The bank can also Mar ‘19 140.2 57.5 -264.4 exposure of various categories of lenders tem of multiples of 25 bps, after the tary easing in the coming months, cent by FY21,” said Anubhuti Sahay, extend loans to all segments, except corpo- Jun‘19 123.6 53.2 -237.2 into equity at the price of ~54 per share, unconventional cut of 35 bps in the including 35-40 bp repo rate cut in chief economist at Standard Chartered rates and stressed and high-risk sectors,” following which the creditors will own August policy. So, at least in one leg, October,” said Siddhartha Sanyal, chief Bank. Kaushik Das, chief economist said a source in the bank. STOCK FEELS 51 per cent stake in the firm. either in the October policy or there- economist and head of research, at Deutsche Bank, also holds a similar The PCA plan covers various sugges- THE HEAT after, the central bank needs to cut the Bandhan Bank. view. State Bank of India’s group chief tions or measures to recover non-perform- (BSE price in ~) repo rate by 15 bps or 40 bps to make Inflation, on the other hand, is economic advisor, Soumya Kanti ing assets (NPAs), reduce costs, boost capi- (in %) BACK PAGE P12 the cut at 50 bps or 75 bps. likely to remain below the target of Ghosh, on the other hand, expects a tal, downsize risk-weighted assets, and PAN-Aadhaar linking date “The cumulative space for rate 4 per cent, say economists, in part 40-bp cut on October 4 itself. “Beyond improve profitability, among others. The cuts is 40 bps. Therefore, depending due to subdued core inflation, and a rate cut, we now firmly believe that a LVB management is in the process of extended to Dec 31 on the size of cut in October, there is despite likely food price pressures counter-cyclical policy response such implementing all of these, said sources. The deadline to link permanent account some more space, though limited,” due to erratic monsoon-induced as tax cuts by the government is a The RBI move came days after the Delhi number (PAN) with Aadhaar has been said Gaurav Kapur, chief economist supply disruptions. much better option than aggressive Police’s Economic Offences Wing registered extended till December 31, a Central Board of at IndusInd Bank. He expects a rate “We expect a 25-bp reduction in rate cuts against a jump in household a complaint against the board of LVB, alleg- Direct Taxes order said on Saturday. Earlier, cut of 15-25 bps. the repo rate in the October policy leverage in recent years,” Ghosh said. ing cheating and misappropriation of funds. CAR: Capital adequacy ratio the deadline was September 30. This is the “There is a demonstrated sense of meet. Given the weak demand level He advised that rates should be Saturdays development could be a major set NPA: Non- seventh time that the government has urgency on the part of policymakers to in economic activity, we expect the good enough for the interest of the back for the proposed merger of Indiabulls performing assets extended the deadline. boost growth. Also, inflationary pres- MPC (Monetary Policy Committee) to depositors, particularly senior citizens Housing Finance with LVB, which is await- Source: Capitaline Compiled by BS sures remain limited. Thus, we con- maintain its accommodative stance who have no formal social security ing the RBI’s nod. Turn to Page 4 > Research Bureau tinue to see a scope for further mone- and expect the repo rate at 4.75 per support. Turn to Page 4 > ON SUNDAY SPECIAL PM’S HOMECOMING Explain ~60K-cr IN DEPTH The voices of reason buy outside GeM, on climate FM tells PSUs STATES’ FARMER SCHEMES Top PSUs told to frontload capex MAKING DEEPER INROADS to lift economic growth THAN PM-KISAN PM-KISAN has been able to reach As countries reiterate old promises to control 77 per cent of the intended climate change, the young are showing the beneficiaries in Punjab, and only way. DISHA SHETTY writes 7 > 57 per cent nationwide, for the April-July tranche. In comparison, about 80 per cent of farmer/labourer beneficiaries under Odisha’s Kalia HEALTH P6 scheme, and Telangana’s Rythu Govt rules out U-turn Bandhu, have got their legitimate cash instalments by now. on e-cigarette ban While PM-KISAN promises ~6,000 per The government has no plan to roll back a year in three instalments to each ban on electronic cigarettes, an official told “farmer family”, Rythu Bandhu Reuters on Saturday, as protests against the promises ~5,000 per acre per season move by vapers in six cities drew scant BJP supporters accord a grand welcome to Prime Minister Narendra Modi on his arrival after a to each “farm land holder”. support. India banned the sale and import week-long visit to the US, at Palam Airport in New Delhi on Saturday. The PM said the respect and ABHISHEK WAGHMARE & SANJEEB of e-cigarettes this month. enthusiasm for India had increased significantly on the world stage in the past five years PHOTO:PTI MUKHERJEE report 6 >

ARUP ROYCHOUDHURY New Delhi, 28 September

The top 32 state-owned enterprises have committed White House may block Chinese firms from markets to spend nearly ~1.53 trillion in capital expenditure for fiscal year 2019-20, Finance Minister Nirmala Sitharaman said on Saturday, after meeting heads of China hawks within the US administration have discussed tighter restrictions on listed Chinese companies for months ‘maharatna’ and ‘navratna’ PSUs. Sitharaman also said the ministry was looking into ALAN RAPPEPORT & ANA SWANSON produce an agreement. the latest updates on the economic ~91,000 crore worth of purchases done by the govern- Washington, 28 September But the prospect of further limiting tensions between China and the ment and PSUs outside the government e-marketplace American investment in China United States. (GeM) for goods and services. Of this, ~60,000 crore of The Trump administration is underscores the challenge that the Details of how the United States purchases have been carried out by PSUs. discussing whether to block Chinese two sides will continue to face even as would restrict Chinese companies “It came as a shock,’’ the minister said, pointing out companies from listing shares on they try to de-escalate a trade war that from American stock markets were that ~60,000 crore worth of purchases by PSUs were American stock exchanges, the latest has shaken the global economy. The still being worked out and the idea made outside the GeM even when those goods and push to try to sever economic ties administration has already increased remained in its early stages, the services were available on the government’s e-market- between the United States and China, scrutiny of foreign investment with a people familiar with the place platform. according to people familiar with the particular eye toward China, deliberations said. “There should be some reason. I have asked them to deliberations. including expanding the types of China hawks within the tell me why they found it fit to purchase these outside The internal discussions are in investments that can be subject to a administration have discussed the the GeM,” Sitharaman added. Expenditure Secretary their early stages and no decision is national security review. possibility of tighter restrictions on Girish Murmu, who was also at the media briefing after imminent, these people cautioned. Last week, the Treasury listed Chinese companies for many the meeting with PSUs, clarified that around The talks come as senior officials Department unveiled new months. Supporters say the efforts ~31,000 crore of similar purchases came from the from both countries are scheduled to regulations detailing how a 2018 law, would close longstanding loopholes government department. resume trade negotiations in the Foreign Investment Risk Review that have allowed Chinese companies At the meeting, Sitharaman asked the PSUs to front- Washington early next month. Modernization Act, will work to with links to its government to take load their capital expenditure and clear their out- President Trump, who has prevent foreign firms from using The effect of limiting Chinese firms from raising capital inside the US could be advantage of America’s financial rules standing dues by October 15. The idea is to give a boost continued to give mixed signals about investments like minority stakes to significant, as 156 Chinese companies were listed on American exchanges with and solicit funds from American to the economy through the frontloading of expendi- the prospect of a trade deal with capture sensitive American investors without proper disclosure. ture. The PSUs have also been directed to set up portals a total market cap of $1.2 trillion at the start of the year PHOTO: REUTERS China, said earlier this week that an information. And the United States Skeptics caution that the move by October 15 to enable monitoring of the status of pay- agreement could come “sooner than has already blacklisted some Chinese could be deeply disruptive to markets ments. The PSUs were told to come up with their capex you think.” His decision to delay an companies, including Huawei, published by Bloomberg News. was down 1.1 percent. and the economy and risk turning requirements for the next four quarters, similar to what increase in tariffs until mid-October effectively barring them from doing The market continued to slide Losses were particularly steep in American investors and pension central government departments were told on Friday. and China’s recent purchases of business with American companies. through most of the day. At close, the technology sector, and among funds into another casualty of the While briefing the media, Finance Secretary Rajiv American agricultural products has Stocks dropped on Friday after a the S&P 500 was down 0.5 percent semiconductor stocks, two parts of trade war. Turn to Page 4 > Kumar said the 32 major PSUs had spent ~48,077 crore fuelled optimism that the talks could report on the deliberations was and the Nasdaq composite index the market that have been sensitive to ©2019 The New York Times New Service in capex from April to August. Turn to Page 4 > 2 COMPANIES MUMBAI | 29 SEPTEMBER 2019 1 > IN BRIEF Express industry Tesla labour practices, Musk Data access curbs put tweet broke the law: Judge targets 8% growth Tesla committed a series of violations of the National Labor Relations Act in 2017 fintech firms in a spot ADITI DIVEKAR and last year, a judge ruled on Friday. Mumbai, 28 September The car maker illegally threatened and Business of credit information bureaus seen coming under threat retaliated against employees, according At a time of economic slowdown, when to Amita Baman Tracy, an administrative DEBASIS MOHAPATRA most industries do not expect strong law judge in California. A tweet that Elon Bengaluru, 28 September growth — especially during the festive Musk sent in May 2018, which suggested season — the express industry (a term employees who chose to join a union would give up company- ith the Reserve Bank of for those offering integrated shipment paid stock options, was among the incidents the judge ruled India (RBI) restricting fin- delivery services) has a slightly different were in violation of the law. The judge’s order calls for Tesla to Wtech firms’ access to con- story to tell. offer reinstatement and back-pay to a fired, pro-union sumer credit information, the busi- Demand is not as high as last year, employee, and to revoke a warning issued to another union ness model of start-ups working on but those in the sector expect reason- supporter. The ruling also calls for the firm to hold a meeting at its lending and consumer insights is able growth. “While we remain cautious assembly plant in Fremont that Musk must attend. BLOOMBERG< being questioned. and are assessing the impact of slow- Industry experts say this step down, it will not be a downturn but low- could negatively affect the business of er growth than last year,” said Abhishek GSK, AstraZeneca Hindustan Shipyard credit information bureaus that have Chakraborty, executive director at trial results may posts profit for seen rising demand from fintechs in DTDC. “If average demand growth rate recent years. The RBI last week asked was 40-45 per cent last year, it will be EXPRESSION OF INTEREST widen drug use 4th straight year banks and non-banking financial With access to customer information, fintech firms create insights with 15-20 per cent this year. I will be sur- GlaxoSmithKline and Hindustan Shipyard has companies (NBFCs) to stop provid- the help of AI and data analytics, and offer them as a service to banks prised if it goes beyond 20 per cent.” | Sector entities believe attractive AstraZeneca both reported achieved an operating profit ing unregulated entities access to Chakraborty said the mood among deals will boost consumption in trial results that will likely of ~68.08 crore and profit consumer information held by cred- not healthy for this growing seg- tomers,” Swain added. middle- and lower-income groups was the season make their competing drugs after tax of ~36.23 crore it bureaus. ment,” said Dipti Lavya Swain, priva- Companies such as Karza pensive, since job security in several | Players were also of the view that available to a wider group of during FY19, said Sarat Babu, Currently, the Credit Information cy and credit information law expert Technologies, Onfido, Spocto, and sectors was low. “But, it does not take a consumer would prefer express ovarian cancer patients, chairman and managing Companies (Regulation) Act, 2005, and partner at HSA Advocates. TransUnion are into the data analyt- away the fact that people will spend dur- possibly helping GSK catch director, on Saturday. This is (CICRA) defines rules relating to use With access to customer informa- ics business and work with banks and ing this season, as it is also more to do service to plain transportation for its rival in a highly contested the fourth consecutive year and access to consumer data from tion, many fintech firms create con- non-bank lenders. about the culture and religious aspect.” the several differentiated services drug class. The firms said it is achieving profit, he told credit bureaus such as TransUnion sumer insights with the help of artifi- Apart from fintech firms provid- Sector entities believe attractive the former offers separately on Saturday their the media. During FY19, all CIBIL, Equifax, Experian, and CRIF cial intelligence and data analytics ing technologies to providers of finan- deals will boost consumption in the sea- | Primarily driven by e-commerce, respective drug candidates three business segments — High Mark. and offer them as a service to banks. cial services, even those fintechs that son. “The slowdown is affecting con- significant demand from the — in a class known as PARP shipbuilding, ship repair Banks partner fintech market- Such insights help banks in their are into lending as an intermediary sumer behaviour and, consequently, small and medium business-to- inhibitors — staved off the and submarine refit — had places and institutional agents and lending decisions. are likely to be affected. spending. However, businesses hope return of metastasized contributed towards provide them authorisation to access “With many banks not so heavily “Online lenders that are working the festival season will bring a turn- business segment and growth of ovarian cancer in women achieving production value credit bureaus’ data. Sources said invested in new-age digital technolo- as market places for lenders and bor- around as customers start looking out the country’s cross-border trade who had responded to of ~595 crore. The shipyard some fintech firms were planning ask gies, or at least yet, they usually seek rowers are likely to be adversely for deals,” said Ketan Kulkarni, chief | The sector creates employment for initial standard treatment, has also taken steps for the the RBI to withdraw the order. partnerships with fintech firms for affected,” said the founder of a marketing officer and head of business a large number of people, directly reducing the risk of a wage revision for officers “While the RBI should have strict their technology and know-how and Bengaluru-based digital lender. development at Blue Dart Express. and indirectly relapse. AstraZeneca and its and workmen with effect vigilance over the use of customer get insights into consumer borrowing However, digital lenders with an “This year, the slowdown did affect US development partner from 2018 and the proposals data procured from credit informa- and spending patterns. Such part- NBFC licence will not be affected by consumer sentiment but e-commerce Merck & Co said their had already been sent to the tion companies (CICs), disallowing nerships help banks to detect frauds this move because they can access has been less affected, as consumers express service to plain transportation Lynparza drug cut the risk of defence ministry and it is the fintech firms to access this data is by doing risk-based profiling of cus- such data. constantly look for variety and deals. for the several differentiated services the cancer progressing expected to get approval in Further, new shoppers get added to the the former offers. again by 41%. It was 38% for due course, he said. PTI< online consumer segment as internet “The consumer is no longer happy GSK's drug. REUTERS< access gets affordable,” said K with simple transportation of goods, Satyanarayana, co-founder and director and in fact looks for end-to-end solu- Glenmark Pharma Indiabulls to sell London property for £200 mn at Ecom Express. “We work pro-active- tions that would include speed, execu- CIAL to give out to raise up to ly on value-selling propositions, a mix of tion capability, and technology,” said 27% dividend to PRESS TRUST OF INDIA majority of shareholders, winds for both the London and to have its more focus price and packaging, primarily driven to Chakroborty. With GDP growth slow- $200 million New Delhi, 28 September stated a BSE filing by the property market and the on the Mumbai and NCR address the needs of festive season ship- ing to 5 per cent, the sector is expected shareholders Glenmark Pharmaceuticals company. pound, it said. markets, the board of the ping,” said Sandeep Juneja, vice-presi- to see 8-8.5 per cent growth, a two per- The Cochin International said its shareholders have Indiabulls Real Estate on In the notice for AGM, According to an assess- company, had on an earlier dent (sales & marketing), DHL Express. centage point decline over last year, said Airport (CIAL) on Saturday approved a proposal to raise Saturday said the firm’s the company had said: “In ment with lenders, a fur- date, authorised and According to an Indian Express players. Being labour-intensive, the sec- endorsed the proposal of its up to $200 million (~1,413 cr) shareholders have light of continuing Brexit ther loan of approximately approved divestment of Industry — 2018 report by Deloitte, the tor creates employment for a large num- board of directors to give out through issuance of debt approved a proposal to sell related issues and uncer- £133 million will be availed company's direct or indi- sector is expected grow at a CAGR of ber of people, directly and indirectly. a dividend of 27 per cent to securities, on Saturday. The its London property to pro- tainty around it, the to complete the ongoing rect stake in the London 17 per cent and reach a size of ~48,000 “Being an asset-light company, shareholders of the proposal was approved at moters for £200 million, in London property market construction on 22 property.” crore in the next five years. Mahindra Logistics uses its network of company. A decision to this the company's annual an annual general meeting remains sluggish. The Hanover Square property It also said the promot- This will be driven primarily by business partners for transportation and effect was taken at the 25th general meeting held on held on September 28. Pound has also had a sus- (London property), and the er has come forward to e-commerce, significant demand from delivery,” said Pirojshaw Sarkari, CEO annual general meeting September 27. “All the Earlier, the firm had dis- tained depreciation from firm would not like to incur acquire the property for the small and medium business-to- of Mahindra Logistics. (AGM) held here. Addressing Resolutions were declared closed its plans to focus on around the time of Brexit this further additional debt £200 million — signifi- business segment, and growth of the Ecom Express expects 2-3 times the shareholders as the passed with the requisite its India business and cut referendum result.” on its own balance sheet cantly above the cost of its country’s cross-border trade, said the surge in festive sales via online shop- chairman of the company, majority," the company said down on debt. The resolu- The continued uncer- the statement said. acquisition, ie £161.5 mil- report. Firms also said consumers in ping, and hence expects 20-30 per cent Chief Minister Pinarayi in a BSE filing. The firm plans tion to sell the property was tainty regarding Brexit con- Explaining further, it lion and CBRE, UK’s recent both business-to-business and busi- jump in demand for last-mile delivery Vijayan said CIAL is one of the to raise up to $200 million in approved by the requisite tinues to provide head- had said, “To reduce debt valuation of £189 million. ness-to-consumer entities, will prefer customers. best institutions in the state Indian and/or international and though there was a lot market through bonds, to mention about its debentures or other debt achievements during the securities in one or more previous fiscal year, the tranches. PTI< observance of model code of Insurance brokers losing the race to technology conduct prompted him to refrain from it. CIAL has Vishwaraj Sugar SUBHOMOY BHATTACHARJEE Watson, and Aon, which have after the Budget announcement the sector is not more than registered a net profit of IPO to open on New Delhi, 28 September joint ventures with a concomi- in July, the Insurance Brokers three years away. ~166.92 crore out of a tant foreign investment stake Association of India sent a list of The advantage of ubiqui- turnover of ~650.34 crore September 30 Ride-hailing competitors Uber of up to 49 per cent. grievances to Union Finance tous presence intermediaries during the FY19. PTI< Vishwaraj Sugar Industries and Ola rolled out competing The challenge for everyone is Minister Nirmala Sitharaman. provide is also being under-cut (VSIL), a Karnataka-based rider insurance products earlier how to fend off competition Significantly they did not list by general insurance compa- sugar company, is entering this week, through tie-ups with from insurance companies and the raising of the FDI cap nies, here and abroad. RCap closes 21.54% the capital markets with an insurance companies. the sweep of technology, mak- among those. This is possibly Brokers are supposed to stake sale in RNam initial public offering for At the same time, insurance ing their business models irrel- because foreign joint ventures operate on behalf of customers 10 million equity shares of broker Marsh has demonstrated evant. The challenge will mount are also members of the against insurers while agents for ~3,030 crore ~10 face value through a another example of using as giants such as Amazon and association. represent the companies. Reliance Capital (RCap) has book building process in a blockchain to make it easy for Google begin to compete with Insurance intermediaries Both are under threat. Tie- announced the completion price band of ~55–60 per clients, carriers, and brokers to the very same intermediaries. like brokers critically provide ups with ride-hailing compa- of 21.54 per cent stake sale share aggregating ~55-60 share real-time information and “Consumer-friendly tech trust for consumers, and nies by insurance companies in its MF arm RNam to joint crore. The offer will open on feedback on how to book/hold giants have set their sights on blockchain removes the need make these intermediaries venture partner Nippon September 30 and close on the best insurance covers. health care. They don’t yet for cultivating that trust. irrelevant. Life Insurance for ~3,030 October 4. VSIL has licensed Changes in technology and command the landscape, but “New insurance processes Among India’s 421 interme- crore.It will further sugarcane crushing capacity marketing are cutting the their disruptive power could The Ola Money and Uber tie-ups demonstrate how insurance and business models built on diaries on the list of the monetise its balance 4.28 of 11,000 tonnes crushed per ground from the feet of India’s bring dramatic changes,” notes firms are forging partnerships to offer their products blockchain will call into ques- Insurance Regulatory and per cent stake in Reliance day and also makes more than 400 insurance bro- Boston Consulting Group lead tion current orthodoxies and Development Authority of Nippon Life Asset rectified spirit, extra neutral kers. Therefore, it is difficult for author Sanjay Saxena in a response to emails from These go beyond tie-ups challenge multiple pain points India, consolidation is there- Management (RNam) alcohol, India-made liquor, them to celebrate the liberali- report released in August. Business Standard — that they with banks to reach clients to that are prevalent across the val- fore likely to precede higher worth ~700 crore, RCap said vinegar, compost, carbon sation of rules to allow 100 per While no proposals to raise were studying the alternatives. offer insurance products, or ue chain,” notes lead author FDI. “Based on trends in tech- in a statement. RCap had dioxide besides power from cent foreign direct investment FDI above 49 per cent have The Ola Money and Uber tie- establish a big presence in car James Colaco in a Deloitte nology and changing business earlier sold 17.06 per cent a co-generation plant. The (FDI) in their sector (insurance come in so far after the ups demonstrate how insurance dealerships to offer motor insur- report Blockchain in Insurance. models, consolidation among stake in RNam in three shares of the company are intermediaries). Department of Financial firms — including even govern- ance. Those are now passé. A Gartner research esti- the intermediaries is quite pos- successive offers for sale in proposed to be listed on the The field is, in any case, Services issued the notification ment-run ones — are forging New marketing plans are mates that even by conserva- sible,” said S Mohan, principal the past, aggregating over BSE and NSE. skewed with only the top six, on August 27, all the leading partnerships with every possi- making insurance intermedi- tive estimates the large-scale officer and director, Paavana ~2,480 crore. PTI< BS REPORTER< including Marsh, Willis Towers brokerages said — in a ble entiry to offer products. aries irrelevant. This is why just deployment of blockchain in Insurance Brokers. Wall Street pokes at start-up bubble as IPO dreams fizzle out MATT PHILLIPS, STEPHEN GROCER & funding in the first place. “When the IPO investments, including: can a company’s bubble of 20 years ago, when shares of ERIN GRIFFITH market is hurting, it has a domino effect profit margins hold up, what kind of start-ups with little revenue or prospects 28 September on valuations and venture capital deals,” competition does it face, and can for profit — like Webvan and said Steven Kaplan, professor (finance & executives be counted on? Theglobe.com — were greedily bid up in This was supposed to be the year when entrepreneurship), University of Chicago. “The ones that we pass on, we don’t their market debuts. the US’ biggest start-ups would finally If it persists, that could make it harder for feel comfortable with the answers that we “Everyone feared this would be make their triumphant debut on the stock start-ups to raise money, he said. get,” said Mr. Kantor. He did not invest in another bubble like in 1999 and 2000,” market. Billionaire Silicon Valley Much of the recent concern has been Uber or Lyft, or Pinterest, for that matter. said Kathleen Smith, principal at investors, sneaker-clad founders and directed at WeWork, a shared office space But he did buy shares of the online pet Renaissance Capital, which provides button-down bankers all expected company based in New York. As it began store Chewy, which went public in June. research on IPOs and manages ETFs that enormous stock sales to turn companies to approach stock market investors, the He said its profit margins, a large potential track their performance. Now, the verdict like Uber, Lyft and WeWork into a new company revealed losses of $1.37 billion in market, and solid executive team were all from the stock market is that it’s the generation of corporate giants. H12019. Investors also questioned reasons he was persuaded to buy. private investment binge that has gone It hasn’t quite turned out that way. Last financial dealings of WeWork’s chief In many ways, the current standoff too far. With a flood of cash, private week, WeWork postponed its planned executive, Adam Neumann, and the between Wall Street and these giant start- investors backing the hottest start-ups initial public offering. Uber and Lyft sold company’s accounting. ups comes down to a simple issue: price. have inflated their valuations to a point shares earlier this year only to see their On Tuesday, Neumann stepped down Because of expectations set by VCs, that public investors cannot tolerate. prices collapse. On Thursday, Peloton under pressure from directors and given the risks they face, the companies “Things have gone a bit nutty,” said joined the list as its shares slumped in investors. It is now uncertain when the Airbnb said last week that it did not losses in the months since it became simply asked for too much. Fred Wilson, a partner at Union Square their first day of trading. Investors took a company will return to the market. plan to go public until 2020, later than publicly traded. And the company is Uber, which private investors valued Ventures, a New York based tech investor. look and backed away, seeing overpriced Shares of rival Lyft have fallen 40 per expected. Palantir Technologies, the data increasing revenue — which comes from at roughly $72 billion before its IPO, is now This moment could be a turning point in companies with no prospect of making cent since the company’s debut in March. mining firm the billionaire investor Peter advertising — fast. worth $54 billion in the public market. what public market investors will accept money any time soon, in some cases led The fitness start-up Peloton has also Thiel helped found, now does not expect “Investors are buying the future, so Lyft, once said to be worth more than from highly valued, money-losing start- by untested executives. reported deep losses on its business of to go public for years as it can continue to help them pencil out the future,” said Rett $15 billion as a private company, now has a ups, he said. The rejection threatens Silicon selling high-end exercise bikes and live- raise money from private investors, two Wallace, whose firm, Triton Research, market cap of roughly $12 billion. “I think that’s very important for Valley’s favoured approach to building streaming classes into users’ homes. On people familiar with its plans said. analyzes tech companies that are going WeWork was last valued at $47 billion private markets,” Mr. Wilson said. firms. The formula relies on gobs of the stock’s first day of trading Thursday, it Not every prominent offering has public. “You can do that with Pinterest. in the “late stage” market of mature The recent troubles may stem from money from venture capitalists to paper ended 11 per cent lower than its IPO price. floundered. Many smaller listings have You can’t do that with WeWork. You can’t private firms. In the run-up to its failed the long incubation period the largest over losses with the expectation that Wall “It’s becoming a tough time to go soared. Among the larger ones is the do that with Uber or Lyft either.” attempt to list shares, executives and start-ups have had. Flush with funding Street investors will eventually buy shares public, there’s no question,” said John online pinboard company Pinterest. Its Charles Kantor, senior portfolio bankers had discussed slashing the from VCs and other private investors, the and make everybody rich. If mutual Foley, chief executive of Peloton. “I’m shares are up 44 per cent since it went manager at Neuberger Berman valuation to $15 billion — but were still firms have not been forced to go to the funds and pension funds are no longer happy we got out, but I think it’s going to public in April. But Pinterest priced its responsible for managing more than unable to gin up enough interest. public markets to secure financing like willing to buy once the firms go public, get pretty tight.” Other firms have delayed IPO conservatively, told investors that it $5 billion, said he asks a few simple The tepid response to these entities they might have in the past. fledgling entities are unlikely to find their plans. was close to profitability, and narrowed its questions when considering an IPO stands in stark contrast to the dot-com ©2019 The New York Times News Service MUMBAI | 29 SEPTEMBER 2019 COMPANIES 3 . < DHFL gets new CEO on board Pepperfry targets two more SUBRATA PANDA have a coupon of 10 per cent, Mumbai, 28 September BALANCING THE BOOKS: while ~2,358 crore will bear no funding rounds before IPO RESTRUCTURING PLAN interest. In the AGM, the hous- ewan Housing Finance ing financier also sought YUVRAJ MALIK OUTSTANDING DEBT ~83,873 cr Corporation (DHFL) shareholders’ approval to Bengaluru, 28 September D has appointed Vajinath Converted to equity 1,764 either sell, lease, or dispose of M Gavarshetty as the new CEO Repaid in full 6,188 assets to reduce the financial head of its proposed ini- on the recommendations of burden. tial public offering (IPO) the core committee of lenders Debt, 10 yrs, 10% 13,364 Other proposals put forth A in FY21, Pepperfry, as well as the firm’s internal Debt, 10 yrs, 8.5% 24,872 were to increase the authorised India’s largest online furniture committee. Gavarshetty is the share capital of the company brand, may look at two more former chief general manager Debt, 21 yrs, 0.0001% 24,619 from ~828 crore to ~1,090 crore. rounds of funding. of State Bank of India. Debt, 9 yrs, no interest 10,707 “At present, the company has This includes $20-30 mil- “This will help the lenders an overdue liability of around lion in equity financing in the monitor the working of the Debt, 10 yrs, no interest 2,358 ~8,000 crore, which the com- next six months, said co- last year, it had raised ~250 company,” said a public sector pany will repay once the debt founder and CEO Ambreesh MONEY MATTERS crore from US-based investor bank executive. ed into equity at the price of banks, financial institutions, retail assets are proposed to be resolution process completes,” Murty (pictured). | Funding includes $20-30 State Street Global Advisors. The housing financier also ~54, following which the cred- mutual funds, insurance firms, used for restructuring liabili- Wadhawan added. The Mumbai-headquar- million in equity financing Urban Ladder, its main held its annual general meet- itors will own 51 per cent stake. and other institutional bond ties of public depositors, to the “Through the toughest tered firm, which reported FY18 over the next six months rival, is backed by Kalaari ing on Saturday, in which it put “…part of the resolution holders. tune of ~6,188 crore. However, phase that our company has sales of ~308 crore, is working Capital, SAIF Partners, Sequoia forth various proposals before process that is currently The draft RP segregates the no interest will be given to the been witnessing, it is notewor- towards profitability and hopes | Firm seeks funding for and Steadview Capital. its shareholders. The firm has underway, no principal hair- company’s debt, based on loan public depositors. thy that we have repaid almost to achieve the milestone some- growth and expansion of its In terms of sales, Pepperfry sought approval for conversion cuts will affect our creditors. assets, into three categories — Under the draft RP, ~24,619 40 per cent of our balance time in the next financial year. logistics footprint and is the largest player in the of debt into equity, or new debt Part of the debt will be con- retail assets, developer loans, crore of the overall ~83,873 sheet without any fresh bor- “We have established a fair- experience studios online furniture segment. instruments, as part of the res- verted into equity and will be and slum rehabilitation. It has crore will be converted into a rowings. This has been possi- ly clear leadership for ourselves | Before IPO, firm may have However, in the last two olution plan. offered to all permissible class- broken down every category to debt paper of 21 years, with an ble only through asset moneti- in the segment and now is the years, Amazon and Flipkart a secondary round to According to the draft reso- es of creditors”, said Kapil be converted into multiple interest rate of 0.0001 per cent. sation initiatives,” he said. time for us to start bringing in have heavily increased focus lution plan (RP), 2.3 per cent Wadhawan, Chairman and parts, each of which will have a Another ~10,707 crore will have Moreover, the board also margin structures more in line provide exits to some of its on the furniture category, while exposure to various categories Managing Director of DHFL, different tenure/interest. a tenure of nine years, without sought shareholders’ nod to with a business that is turning existing investors global major Ikea has also selec- of lenders — including debt in his AGM speech. It had outstanding debt to any interest. provide enabling rights to profitable,” Murty told Business | Furniture company has tively started online commerce. from banks, bond holders, The remaining loans will be of ~83,873 crore as of July 6 and Of the remainder, loans lenders for appointment of a Standard. raised close to $200 million Add this, the rise of rental external commercial borrow- converted into new loans with loan assets to the tune of amounting to ~40,594 crore are nominee director on Started in 2011, Pepperfry in equity funding so far players, including Furlenco ings (ECB), borrowings from 9-, 10- and 21-year tenures. ~89,476 crore — including expected to have a tenure of 10 the board. competes with Urban Ladder, and RentoMojo, is also nudg- National Housing Bank (NHB), In an exchange filing, the retail book of ~35,233 crore and years, of which ~24,872 crore The voting on all resolutions horizontal players like Flipkart ing furniture buyers towards perpetual debt, commercial firm said it had presented a wholesale book of ~47,610 will have a coupon rate of discussed in the AGM will be and Amazon, and furniture investors in a largely second- renting. paper borrowings, and subor- draft resolution plan to insti- crore. 8.5 per cent. done and the results declared in rental firms such as Furlenco ary share-sale to provide exits “We see all these develop- dinate debt — will be convert- tutional creditors, including Cash flows from existing Another ~13,364 crore will the next couple of days. and RentoMojo. to some of the earliest ments as good for the category. “Over the next six months, investors. This round typically It helps grow the category and we would look to raise primary happens around six months gives customers more choices. capital in the company of about prior to the IPO. Pepperfry is All these names you men- $20-30 million, effectively for planning a public float in the tioned are an indication that growth and expanding our next 14-18 months. the furniture market is large SoftBank bets on former Sprint boss to fix WeWork logistics footprint and experi- The furniture company has enough and required a certain ence studios,” said Murty. so far raised around $200 mil- degree of organisation. As a GILES TURNER, SARAH MCBRIDE No decision has been made He remains executive chair- his role at SoftBank, Bloomberg ARM Holdings Plc and WeWork. “And then, pre-IPO, we may lion in equity funding from marketplace, we don’t think of & LIANA BAKER on his exact role, the people said. man of Sprint. reported in February. Neumann stepped down as have a secondary round to pro- players such as Norwest them (other players) as compe- New York/London/San Francisco, Claure will help WeWork’s Claure is currently chief Claure, already chief operat- CEO officer of WeWork this vide exits to some of our exist- Venture Partners, Bertelsmann tition but as potential mer- 28 September new leadership identify revenue operating officer of SoftBank ing officer of SoftBank Group, week under pressure from ing investors,” he said. India Investments, Zodius chants who will sell on and cost-saving opportunities, Group, CEO of its international was tasked with leading a new SoftBank and other backers. Usually, just before the IPO, Capital and Goldman Sachs. In Pepperfry at some point,” SoftBank Group is tapping one of the people said. operations and a member of its Latin America investment fund Neumann was named non- companies get a new set of its more recent round in March said Murty. Marcelo Claure (pictured) to Representatives for WeWork, board. He also oversees the and helping Vision Fund com- executive chairman while sen- help turn around WeWork, after SoftBank and Claure declined firm’s $5-billion technology panies expand into that region. ior WeWork executives ousting co-founder and Chief to comment. In Claure, Son fund focused on Latin America, He retained his duties over- Sebastian Gunningham and Executive Officer (CEO) Adam would be tapping an executive which it launched this year. seeing SoftBank Group assets Artie Minson were appointed Apollo Hospitals Group signs MoU with Wellysis Neumann from the corner office with a track record of fixing After clashing with Rajeev such as asset manager Fortress co-CEOs. earlier this week. companies and overseeing his Misra, head of the Vision Fund, Investment Group, Sprint Corp, The management shake-up Apollo Hospitals Group has The MoU was exchanged by Apollo Hospitals' ecosystem. Masayoshi Son, the head of firm’s investments. the firm’s $100 billion invest- came after WeWork’s plan to signed a Memorandum of Rick Hongryul Kim, CTO/CMO and The centre has modern SoftBank, WeWork’s largest The 48-year-old joined ment vehicle, Claure changed raise $3 billion in an initial pub- Understanding (MoU) with co-founder, Wellysis and Hari connected technologies investor, has asked the former SoftBank in 2013, when the lic offering this month disinte- Wellysis, a spinoff company of Prasad, group president, Apollo enabling Tele ECH Monitoring, CEO of Sprint to take a more Japanese firm bought grated over corporate gover- Samsung SDS South Korea, to Hospitals Group. CICU monitoring, Tele ECHO hands-on role helping oversee a Brightstar, a phone distribution IN CLAURE, SON WOULD nance concerns and boardroom develop, manufacture and The Group has set up over 40 Monitoring , Remote Cathlab clean-up of the office-rental company Claure ran. BE TAPPING AN EXECUTIVE WITH drama. commercialise cardiac Cardiac Command Centres and ER Response Module. It will company from his position at Son tapped him in 2014 to A TRACK RECORD OF FIXING The We Company, WeWork’s wellness, diagnostic, across its hospitals and any also have facilities for training SoftBank, said people familiar run Sprint, which he helped COMPANIES AND OVERSEEING parent company, has likely monitoring and therapeutic doctor across the country can and development, and a with the matter, who asked to turn around prior to the delayed its IPO until 2020, peo- devices. The joint venture will register to gain access to the management dashboard for HIS FIRM’S INVESTMENTS not be identified because the company’s pending sale to rival ple familiar with the matter said be set up in Chitoor, knowledge and experience of tracking and control. matter isn’t public. T-Mobile US Inc. this week. BLOOMBERG Andhra Pradesh. over 300 cardiologists across BS REPORTER ‘Vedanta has limited Eywa bats on front-end presence in the US & EU

GIREESH BABU at launching four more products in ed Eywa in 2015. pain management, cardiovascular organise the rest of the supply chain. exposure to the Chennai, 28 September the US and three products in the UK It is estimated that there are and central nervous system (CNS) This is a company that has estab- market before the end of this year. around 800 products with value less products. lished a front-end-first structure, as Eight Roads Ventures-backed Eywa "At this stage, we want to build a than $200 million that have limited Most large Indian pharmaceutical opposed to what pharmaceutical automotive sector’ Pharma, founded by two former good presence in the US and Europe. competition in the US market. companies have historically been companies have historically done — Mylan employees, is looking at In the second phase, a year or two Eywa picked a portfolio based on strong in developing and manufac- start with back-end manufacturing, As aluminium producers are disquieted by headwinds like soft LME expanding to the US and European from now, we will look at expanding limited competition, with low- to turing high-quality, low-cost generic and then move to set up a front end," prices and soaring imports, Vedanta is focusing on reducing costs Union (EU) markets with a portfolio of into other markets with our mid-volume space where products, and have relied on their cost he said. "We were primarily attract- and ramping up portfolio of value-added products. AJAY KAPUR, CEO limited competition products. It plans existing portfolio. Young Eywa Pharma the overall median compe- competitiveness to win market share ed to the investment by the world- (aluminium & power), Vedanta, talks to Jayajit Dash about Vedanta’s to have a front-end marketing pres- companies are better posi- wants to have tition is around three to in the US. This strategy helped com- class team, which has been able to plans. Edited excerpts: ence in the US. tioned to address the market its own label in four companies. It also panies in the first two decades of the penetrate the US market, and the Targeting 16 products in the US because we are nimble foot- the world's wanted to be a front-end Indian pharma industry, and up to consolidated distribution structure Vedanta has set a target to market by the end of this year, Eywa ed and fast to respond," said largest generic pharma company, 2015. Now, with heightened price pres- there, a very rare feat for a start-up," contain aluminium Pharma wants to have its own label in S Srinivasan, co-founder, single-country which sells products with sure and competition, the game needs he added. production cost at $1,500 per the world's largest single-country Eywa Pharma. pharma market its own label, while most change, said Prem Pavoor, partner, In 2016, the company had raised tonne. By when and how will pharma market, unlike most of its Srinivasan, former CEO Indian companies looked at Eight Roads Ventures. $30 million from Eight Roads you achieve it? Indian peers who dabble in the of pharma major Mylan in India and back-end with R&D and manufac- "Srinivasan and Jayakumar were Ventures India (the proprietary While a cost of production of generic space. former managing director of turing, and then went into front-end amongst the first few people to investment arm of Fidelity $1,500 per tonne is our mid- The company has a total of 36 Shriram Venture (the holding entity of marketing or continued to remain recognise that and, as a new entrant, International), US-based F-Prime term vision, we have given a products filed for approval between of the various industrial businesses a back-end player. believed they required a US sales Capital Partners and Envestor guidance of $1,725 to $1,775 per the US and Europe. It has an approval of the Chennai-based Shriram The company manufactures and marketing team first. By estab- Ventures together with its affiliates tonne for FY20, and are on for almost 20 so far. It launched its Group), and R Jayakumar, former most of its products in the US, while lishing a front-end in the market (part of the Shriram Group). course to achieving it. Costs first product in the US in September head of global business development some are manufactured in India and first, it would help Eywa understand Srinivasan said the company may not in the aluminium industry are 2018, and within a year it has launched and head of regional technical oper- exported to the US. Most of its prod- what the opportunities and gaps be raising funds in the primarily driven by the cost 12 products. The company is looking ations for EMEA with Mylan, found- ucts fall under three segments — were, and based on those, they could near future. of its raw materials — alumi- na, bauxite and coal. We are focused on unlocking opera- tional efficiencies and con- trolling cost drivers to ensure lower production cost. Want to sell Air India as a successful concern: Hardeep Puri Accordingly, we have down over the past few secured robust long-term con- months, but it usually oper- INDIRA KANNAN prevailed as the flight and cabin crew tracts for bauxite with global ates via long-term contracts Toronto, 28 September greeted the minister and posed for suppliers along with the through ancillary units. photographs with him. domestic ones. Vedanta has limited Heralded by dhol beats and an energetic Puri said he was “appalled” that Air exposure to the auto- troupe of bhangra dancers, India’s Minister India’s popular daily service on this busy LME aluminium motive sector and the for Civil Aviation, Hardeep Singh Puri, sector had been withdrawn seven years ago, prices are hovering slowdown has no flagged off Air India’s non-stop flight from and added that he had made it a priority as around $1,700. What decipherable impact Toronto to Delhi at the Pearson soon as he got the civil aviation portfolio, to does this mean for the on Vedanta’s sales International Airport on Friday. The airline resume the flight. domestic aluminium and performance. was resuming its service on this busy sector Indian officials noted that there are producers? Do you think after a gap of seven years. Speaking to around 1.6 million people of Indian origin, global aluminium prices will Flat-rolled products in Business Standard, Puri said the Indian as well as over 170,000 Indian students, in strengthen in the near term? aluminium are gaining government was committed to completing Canada. The global economy has been traction with a consensual the carrier's privatisation “within a defined Air India is starting off with three flights volatile over the past quarters forecast that it will be in the period of time”, and the resumption of the a week on this route for now and hopes to owing to several uncertainties growth territory through Toronto-Delhi flight was another step in bump it up to six flights a week by the end of and escalating trade wars. 2025. Does Vedanta intend to that direction. “We want to sell Air India as a the year, and then to daily service, LME prices reflect these branch out into this successful, expanding concern,” he said. depending on the traffic. global trends too. Like every segment? In an interview, Air India’s Chairman The demand was evident from the fact commodity, we expect LME The use of aluminium flat and Managing Director Ashwani Lohani, that the flights are fully booked for the next prices to rebound. It is impor- rolled products defines the who flew into Toronto from Delhi on the couple of months leading up to the peak tant to remember that alum- degree of sophistication of first flight of the new service, added: “We’re holiday season. inium is the second-most an economy. trying to flog our planes so that we fly more. The airline’s Deputy General Manager important metal in the world Flat rolled products cater The single most important parameter for (Commercial) and Toronto co-ordinator, and finds critical applications to a niche market in India as any airline is how many hours do you keep Sandeep Roy Choudhury, said their service in key sectors. From that of now, but that is also evolv- the planes in the sky? We’re trying to was competitively priced against standpoint, the demand for ing slowly. increase those hours and that adds value to The non-stop flight from Delhi to Toronto was heralded by bhangra dance and dhol beats competitors such as Air Canada, and UAE- aluminium will only surge. As our economy matures, the airline.” Lohani said the airline was based rivals Emirates and Etihad. the consumption of flat adding a number of new flights by the process”. He declined to give details of privatisation, Puri replied, “No, I’m not, “We are offering two pieces of baggage, How has the slump in the rolled products will increase “bringing a couple of grounded planes back the discussions among the Group of because whenever you undertake a process another USP for us, and that’s all the way to automotive sector and over the years. Vedanta to life”. Ministers or GoM that met earlier this of this kind you will obviously ensure various destinations in India, and subdued economic growth already maintains a pres- Last year, the government failed to month to discuss the sale, but declared, those… there are issues relating to assets of particularly on long-haul flights, giving two affected your sales ence in the rolled products attract any bidders for its offer of a 76 per “I'm absolutely sure that we will complete the company, manpower, medical cover, so pieces of baggage is a very big attraction for performance? Will it have segment through its 70 kg cent stake in the airline. the privatisation sooner rather than later.” we will look after all that. If you’re the passengers,” he said. any bearing on your gross tonne facility at its Balco This time, according to Puri: “100 per Lohani said the Expression of Interest was determined to go through with The carrier is using the Boeing 777-300 revenues and profitability? smelter in Chhattisgarh. cent is the current thinking everywhere, as expected to be finalised in October. privatisation, then you will not allow long-range aircraft for the roughly 14-and- The automotive sector in last time we went in wanting to retain 24 per Asked if he was concerned about the yourself to be derailed by concern X or Y.” a-half-hour flight. Puri left Toronto for India has been facing a slow- More on business-standard.com cent and clearly that was not conducive to reported opposition of employee unions to At Pearson on Friday, bonhomie Delhi on the inaugural flight. 4 YOUR MONEY MUMBAI | 29 SEPTEMBER 2019 1 >

INVESTMENT BS TUTORIAL Jayant Pai Opt for well-diversified debt funds Financial literacy 1. Which was the highest grossing Indian movie last for funds that are well diversified year? While portfolio and have exposure to a large num- A. Sanju concentration can ber of corporates. Portfolio con- B. 2.0 centration has the potential to offer C. Raazi boost the returns of benefits in the case of equity D. Sarkar schemes, but none at all in debt equity funds, it offers funds. The less concentrated a port- 2. Modified duration of a bond depicts the extent of no benefit in case of folio, the more your risks are diver- change in bond price due to a change in ______. sified. Furthermore, the returns are A. Inflation bond funds not compromised because the devi- B. Maturity date ation in returns of AAA-rated com- C. Call and put options panies is usually not much (IL&FS D. Interest rates RAJ MEHTA was an exception that offered much higher yield compared to other 3. ______depicts and studies the concept of ebt mutual funds have come AAA-rated companies). taxable income elasticity. under the scanner over the If the investor’s primary goal is A. Engel curve past one year — a rather to preserve capital and earn a rea- D B. Beveridge curve disappointing one due to defaults by sonable rate of return on it, then he the Infrastructure Leasing and should stick only to overnight and C. Laffer curve Financial Services (IL&FS) and liquid fund categories. On the oth- D. Hubbert curve others companies. Corporates have er hand, if he wants to earn an 4. The oldest bank in the world is located in ______. defaulted on their obligations alpha of 100-150 basis points (bps) towards mutual funds even in the compared to bank fixed deposits or A. Italy past. Some of the names that come to liquid funds, and is willing to take B. Sweden mind are those of Ballarpur credit risk, then he may look at C. Netherlands Industries, Amtek Auto, and Jindal credit risk funds and other such D. Greece Steel & Power. But the recent spate of categories. defaults, including names like A final word on what debt mutu- 5. Abhinav Kumar, who gained fame for his role in the IL&FS, Zee Entertainment al funds are up against in India. Trivago ads, recently joined ______. Enterprises, Dewan Housing Finance Here, they have to compete against A. Google Corporation, Reliance-ADAG group instruments offered by the govern- B. PhonePe companies and Altico capital, com- papers. Asset-liability mismatch in TIPS FOR CHOOSING arise in the wake of a default. ment and the Reserve Bank of India C. Instagram ing one after the other in quick suc- NBFCs was a key factor responsible THE RIGHT FUNDS Regulations now also allow side (RBI). Some of the schemes that the D. PayTM cession, has awakened investors to for defaults by some of them. pocketing in debt schemes in case government offers, like Employees

the risks in debt-fund investing. of a default. What this effectively Provident Fund (EPF), Public „ Your investment horizon must at it. for advertising while

A collective failure: The next ques- does is separate the papers of com- Provident Fund (PPF), National least be equal to or higher than the portal the with employed also was he India in

Paying the price for asset-liability tion that arises is: Who is to blame for panies that have defaulted from the Savings Certificate (NSC), and

mismatch: Multiple factors have these defaults? Are fund managers average duration of the fund good ones. Redemption is restricted others, or RBI Savings (Taxable) Trivago, of face the being Besides marketing.

He joined them as vice president-product vice as them joined He led to the slew of corporates defaults to blame for holding poor-quality category you invest in in the pocket that holds these Bonds give returns in the range of D. 5.

witnessed over the past year or so. debt papers? Are credit rating agen- papers. This has the potential to 7.75-8.60 per cent.

„ Except in case of credit risk funds Italy. in located is It 1472. in established

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regulator does not define how much companies. Its default last year had panies quickly enough as their default, often face. mise his portfolio in the matter of returns. diminishing of because revenue tax

credit risk other categories of debt a domino effect on many compa- finances deteriorated? Are credit rat- Some categories of debt mutual his liquidity and taxation needs further raising for counterproductive become

funds can take nies. Though most of the others that ing agencies not regulated tightly funds will always take credit risk in (which debt funds can fulfil). will point certain a beyond rates tax increasing

have defaulted since then have no enough? All the parties mentioned pursuit of higher returns. A few of Nonetheless, why would an „ Hence, take a close look at the that is curve Laffer the of result potential One

monetary relationship with IL&FS, above must share the blame to some the corporates that funds have investor take market, interest-rate,

the latter’s default led to a liquidity extent, since it is the collective quality of papers in your portfolio, or invested in will default even in the and credit risk when he has so rates. tax possible all and taxation by raised

squeeze in the system and affected responsibility of all stakeholders to get an advisor to do so future. There is nothing wrong with many risk-free options that offer revenue government between relationship

It is a theoretical representation of the of representation theoretical a is It

lending by non-banking financial protect investors’ wealth. „ The bulk of your debt fund funds taking risks so long as these higher yields? Only last week, the C. 3 companies (NBFCs) especially. As investments should be in funds that risks are clearly defined and com- Labour Ministry notified that the rates. interest

Warren Buffett has said: “Only when Regulations tightened: Besides municated to the investors in those interest rate on EPF would be 8.65

take neither credit nor duration risk in change a to response in bond a of value the tide goes out do you realise who depending on credit rating agen- categories. Just as banks have non- per cent for 2018-19, compared to It expresses the measurable change in the in change measurable the expresses It

has been swimming naked.” cies, fund houses need to build „ Stick to funds that do not invest performing assets (NPAs), mutual 8.55 per cent a year ago. If in a D. 2.

Something similar happened with strong internal credit research capa- more than 3 per cent of portfolio in a funds will also have some invest- declining interest-rate scenario, the figure.

some corporates and NBFCs. So bilities to be able to spot trouble single company or group ments in corporates that default or government is willing to increase that half around with next, was Sanju crore.

According to IMDB, it grossed over ~700 over grossed it IMDB, to According long as the times were good, every- when it is at a nascent stage. Now defer repayment. the rate of return on EPF, then it B. 1.

body danced to the music. But as the regulations have also been tight- becomes very difficult for several soon as there was a liquidity ened, and this will certainly help has stipulated that at least 20 per Do the due diligence: Investors debt fund categories to compete Solutions squeeze in the aftermath of the the industry deal with similar prob- cent of the corpus of liquid funds need to examine closely the port- against these instruments. events of September 2018, several lems in a better manner in the must be invested in liquid assets. folios of funds they plan to invest The quiz master is head - marketing, PPFAS Mutual Fund companies and NBFCs were not future. The regulator, the Securities This will allow these funds to deal in. Large exposure to a particular The writer is a fund manager with PPFAS Send your queries and feedback at [email protected] able to roll over their short-term and Exchange Board of India (Sebi), with the redemption pressures that corporate group can be risky. Look Mutual Fund. Views are personal

ECONOMY1 > FROM PAGE 1 > White House may block RBI puts Lakshmi Vilas Bank Explain ~60K-cr PEOPLE IN THE NEWS BINAY SINHA under PCA framework buy outside GeM, The bank reported a loss Chinese firms from markets of ~894 crore in 2018-19, FM tells PSUs The effect of limiting Chinese significantly higher than For the October-December quarter, they firms from raising capital inside the ~585-crore loss it post- have pegged their capex pipeline at the United States could be sig- ed the year ago. around ~50,159 crore, and for January- nificant. As of the beginning of The bank’s capital March the commitment is around this year, 156 Chinese compa- adequacy ratio (CAR), in ~54,700 crore, taking the total close to nies were listed on American line with Basel III guide- ~1.53 trillion. Besides Kumar and exchanges and had a total mar- lines, was 6.46 per cent as Murmu, Economic Affairs Secretary ket capitalisation of $1.2 trillion, of June 30, 2019, as Atanu Chakraborty was also present. according to the US-China against 7.72 per cent as of When asked if this commitment was Economic and Security Review March 31, 2019, and 9.45 an increase compared to what PSUs Commission. per cent at the end of the The bank has got were planning beginning of the fiscal “The underlying concerns June quarter last year. shareholders’ approval year, Murmu said it was exactly the have merit, but how to deal with The bank has raised to raise up to ~1,000 crore same. The capex commitment may them without creating a lot of capital amounting to by issuance of securities increase as some of the PSUs have plans collateral damage is tricky,” ~188.16 crore by way of a to raise more from the market and oth- Patrick Chovanec, managing preferential issue on pri- March 31, 2019). ers have indicated they may need more director at Silvercrest Asset vate placement basis, The bank has got share- gross budgetary support. Chakraborty Management, wrote in a post apart again. The administration is also under the non-promoter holders’ approval to raise said that the PSUs’ capex plan will not on Twitter. “Abruptly delisting “This would be another step reviewing how leading invest- category, to India Bulls up to ~1,000 crore by affect their ability to pay dividend to Chinese firms en masse would in ratcheting up the pressure,” ment funds, including pension Housing. issuance of securities. The shareholders or buy back shares. clearly send shock waves said Michael Pillsbury, a China plans for public sector employ- The bank’s gross non- resolution to raise funds To deliberate on whether bank guar- through markets.” scholar at the Hudson Institute ees, funnel money to Chinese performing assets (NPAs) by issuance of securities, antee is turning into a hurdle, a meeting The idea gained traction on who said he raised the concept firms and could try to place lim- stood at 17.30 per cent as including American is being planned between the RBI, the Capitol Hill this summer when of investment restrictions with its on those vehicles. of June 30, as against Depository Receipt and finance secretary and select PSUs. “We Republicans and Democrats in the White House after negotia- For example, the Thrift 15.30 per cent as of March Global Depository Receipt, will see why bank guarantee is becoming Making an entry into financial services, the Senate and the House intro- tions with China broke down in Savings Plan, the retirement 31, 2019, sequentially. Net was approved by share- a big hitch or hurdle in the government Flipkart co-founder and internet billionaire duced legislation that would the spring. plan for government NPAs stood at 8.30 per holders in its annual gen- paying up the 75 per cent post arbitration delist firms that were out of com- The White House declined employees, is expected to cent, as against 5.96 per eral meeting. awards. If that is the case, I want RBI Sachin Bansal has taken a majority stake in pliance with American regula- to comment. change its composition next cent as of June 30, 2018, The shareholders also help also. The finance secretary will sit Bengaluru-based microfinance company tors for three years. The law- The concept has divided year to include more expo- and 7.49 per cent as of approved raising autho- with RBI and sort this out,” the minister Chaitanya Rural Intermediation makers argued that Chinese Trump’s advisers along their sure to emerging markets, March 31, 2019, sequen- rised share capital from said. Sitharaman added that PSUs would companies have been benefit- usual fault lines, with Peter including China. tially. The provision cov- ~500 crore, divided into review post-arbitration claims without Development Services ing from American capital mar- Navarro, Trump’s trade advis- That trend has been a natu- erage ratio improved to 500 million equity shares compromising the companies’ interests. kets while playing by a different er, advocating action and ral consequence of China’s eco- 63.08 per cent (55.80 per of ~10 each, to ~650 crore, Murmu said the 32 PSUs had ~49,000 set of rules. American com- Treasury Secretary Steven nomic growth. In 2019, China cent as of June 30, 2018, divided into 650 million crore worth of arbitration and ~43,000 plaints centre on a lack of trans- Mnuchin urging caution. accounted for 129 of Fortune and 62.08 per cent as of equity shares. crore of counter-claims pending. parency into the ownership and Discussions about new Magazine’s list of the 500 finances of Chinese firms. The restrictions comes as the Trump biggest global companies by business community has long administration has been push- revenue, while the United States criticised China for classifying ing President Xi Jinping to open produced 121. Chinese compa- Majority see 25-bp rate cut in monetary policy some auditor reports on compa- Chinese markets to American nies, including many state- ny finances as state secrets and businesses and investors and as owned enterprises, have Soumyajit Niyogi, associate pletely by cyclical stimulus tion and borrowing calendar outlawing cross-border transfers China has begun to relax some become more important com- director of India Ratings and measures,” Nitsure said. remains within limit. of auditors’ documentation. of its regulations that limit for- ponents of major stock indexes Research expects a pause. The bond market, though, “As of now, we expect the fis- In 2015, the Chinese affili- eign investment. in recent years. “Amid the weakening of growth will be keenly watching the fis- cal deficit at 3.5 per cent of GDP. ates of the Big Four accounting The logistics of enacting But China skeptics in environment, interest rate elas- cal equations. Yields are already Hence, a 25-bp cut in October firms — Deloitte Touch Tohma- such a proposal remain some- Congress, the administration ticity falls more. Let's allow the up, fearing extra borrowings. will be followed by another tsu, KPMG, PricewaterhouseCo- what murky, particularly with and elsewhere fear that the fiscal policy arrest such propo- And that should also weigh on 15-bp cut in the repo rate in opers and Ernst & Young — legislative action in Congress arrangement is still funneling sitions at first, before the next the minds of the MPC. December,” said Sameer paid $500,000 each to settle a largely stalled amid political American taxpayer money cut happens. Room will be avail- “The RBI and the MPC will Narang, chief economist at dispute about their refusal to gridlock. The SEC, which over- into firms that support the able at least 40 bps, but more still be willing to cut rates even Bank of Baroda. provide documentation on sees publicly traded companies Made in China 2025 plan to important is ensuring sustain- beyond October -- however, There is, though, a real pos- Chinese firms to the Securities and the stock exchanges, is an dominate global industries, or ability of the overall rate regime much will depend on how data sibility that the RBI may want to and Exchange Commission, independent agency with three a troubling surveillance state at such level,” Niyogi said. evolves. We could see a spike in frontload its rate cuts in October which an American judge had Republican commissioners and in Xinjiang. Even as there is room for a inflation from November and pause after that. ruled was a violation of United two Democrats and is not “We have unlimited financ- further 35-40 bps cut in the onwards, and the questions “Given the continued slug- States law. The White House has required to honour edicts from ing for the Chinese Communist fiscal year, Rupa Rege about the quality and extent of gishness in growth, benign grown more interested in block- the White House. Party, and their front organiza- Nitsure, chief economist at the fiscal balance will also per- inflation, and global conditions, ing Chinese firms in recent The Trump administration tions,” Stephen K Bannon, the the L&T Finance group, won- sist,” said Ananth Narayan, we still see room for further weeks, with some in the admin- could unilaterally impose president’s former chief strate- dered “if this will have any associate professor at SP Jain accommodation. We expect 40 Nearly 80 employees of C Vijayakumar-led IT istration describing it as a top restrictions on national securi- gist, said at a September 12 event material impact on reversing Institute of Management. bps of rate cut in October, with services company HCL Technologies at priority. Officials say the topic is ty grounds, as it has with tar- hosted by the Committee on the the slowdown.” Harihar Krishnamurthy, probability of further rate cuts Google’s Pittsburgh office have voted to not yet an issue in bilateral iffs, on the basis that American Present Danger: China, an “The magnitude of financial head of treasury at First Rand getting minimised post the cor- negotiations with the Chinese money is flowing to Chinese organization that warns of an and real sector disruption is Bank, said there could be a 25- porate tax cuts,” said Upasna unionise, citing lower pay and benefits and inserting it into the talks companies that pose a threat to existential threat from China. large and current economic bp cut in October, and a further Bhardwaj, chief economist of could lead negotiations to fall the United States. ©2019 The New York Times News Service issues cannot be resolved com- 15 bps at some point if the infla- Kotak Mahindra Bank. MUMBAI | 29 SEPTEMBER 2019 ECONOMY 5 . <

CRISIL DRIP SOUTH-WEST MONSOON WINDS UP IN SURPLUS Rains spark tomato price rise Rates double in one month on reduced supply; processors stay away from fresh purchase THE 2019 SOUTH-WEST State-wise DRIP scores MONSOON season has ended DILIP KUMAR JHA Following that, the uneven distribution | 2018 | 2019 Average of last 5 years with rainfall at 6 per cent Mumbai, 28 September RATE CHART of the monsoon hampered sowing with WEST BENGAL surplus over the long period Model Price in ~Qtl drought in the initial phase in some 8.5 average (LPA) at the all-India omato prices have doubled in the Aug 31, Sep 27, % major growing regions of the state. 10.4 level. A ‘normal’ season would mean rainfall last one month after supply 2019 2019 chg Again, tomato farming was affected at ±4 per cent of LPA. T reduced from Maharashtra, by two rounds of floods across the state. 01015205 However, uneven distribution of rains - owing to incessant rains across major Mumbai 1,000 2,200 120.00 “There was a huge crop loss across 3.0 both spatial and temporal — meant that growing regions. Abohar 1,500 2,868 91.20 Maharashtra. Delay in sowing resulted in sowing was initially slow but gained pace Maharashtra is one of the largest Ahmedabad 1,500 2,850 90.00 the proportionate delay in harvesting. BIHAR later. Excess rains in many places have also growers of tomato. While farmers are preparing to harvest 8.2 damaged crops, in addition to life and Data compiled by Nashik-based Delhi 1,387 2,398 72.89 the pre-matured crop, continuous rain 6.4 property. As of September 25, central India National Horticultural Research & Amritsar 1,400 2,400 71.43 across the state has eroded prospects to got a thorough drenching, with rainfall 25 per Development Foundation (NHRDF) cash in on the higher tomato prices,” said 01015205 cent above normal. Relatively close was the showed almost 100 per cent increase in Kolhapur 1,150 1,500 30.43 Shivaji Pandurang Chubhale, chairman, 5.5 southern peninsula, where cumulative tomato model prices in September to ~24 Compiled by BS Research Bureau Nashik APMC. rainfall was 16 per cent above normal. a kg from ~14.50 a kg in the beginning of Source: NHRDF Interestingly, quality of the current UTTAR PRADESH Deficiency, at 16 per cent below normal, was the month. Meanwhile, stockists ramped harvested crop is also poor with high 2.3 the highest in east and north-east, whereas up supply to take advantage of the price the beginning of September. sharply from Maharashtra which led to a moisture content, thereby reducing the 5.2 the northwest was 8 per cent short. rise. Thus, total tomato arrivals jumped Trade sources believe that tomato sharp surge in prices in the wholesale shelf life amid fears of spoilage. Half of the country* received ‘normal’ to 519 tonnes towards the end of supply from Maharashtra has slumped mandis. Farmers have reduced supply Meanwhile, tomato processors, 01015205 rains this season. Compared with the past few September from 368 tonnes in the begin- due to incessant rain in the state towards due to water logging in the fields. Rain in including chips and ketchup makers, 7.4 years, fewer places saw normal rains, while ning of the month. the fag end of the monsoon season. the last few weeks paralysed harvesting have deferred their fresh purchases at close to a third saw ‘excess’ and the rest saw Similarly, the price of tomato in Farmers in Maharashtra feed tomato and thus, transportation of tomato,” said this price. These large corporates nor- HARYANA deficiency. The good part is most regions that Mumbai jumped to ~25 a kg on Thursday during the September-October period to Shyam Lal, Deputy Secretary, Azadpur mally purchase good quality tomato for received deficient rains enjoy good irrigation from ~16.50 a kg early September. In the entire country with their early kharif APMC. Tomato sowing was delayed this future use. “There is no order from large 1 cover and therefore the impact on crop Mumbai, the Agriculture Produce variety crop. It is followed by the sea- year due to a three-week delay in the buyers at this price. They fill their cold 5.1 production would be somewhat cushioned. Market Committee (APMC) said onion sonal kharif crop from Andhra Pradesh, onset of the monsoon. storage during peak arrivals when prices 01015205 Among major kharif growers, Karnataka, arrivals declined to 378 tonnes on Karnataka, Madhya Pradesh and Gujarat. The vegetable’s planting was dis- fall sharply,” said a large tomato suppli- 3.6 Gujarat, Maharashtra, Rajasthan, and Thursday as compared to 417 tonnes in “Tomato arrivals have declined rupted due to lack of soil moisture. er in Vashi, near Mumbai. Madhya Pradesh have received excess rains at 23-37 per cent above normal. By contrast, Haryana, West Bengal and Uttar Pradesh have Crop-wise DRIP scores seen rainfall deficiency of 20-43 per cent. And Bihar, which was deficient till the past week, MAIZE Central Bank set to raise has seen some catch-up. 6.9 Given the wild swings this year, deficiency ~2K cr via tier-II bonds 3.6 in many others, rapid catch-up in a few areas 01015205 and delay in others, some damage to crops ABHIJIT LELE The other bank is 7.5 and sowing is a given. The extent of this Mumbai, 28 September Mumbai-based Bank of India. remains a monitorable. To be sure, some re- Central Bank is at present sowing or delayed sowing has also taken Public sector lender Central under the Reserve Bank of RICE place, which would mitigate some of the Bank of India plans to raise India’s prompt corrective 4.0 damage. That said, rainfall volume data alone ~2,000 crore capital through action (PCA) regime on 3.3 does not tell the whole story. We need to also tier-II bonds to meet the regu- account of high incidence of consider vulnerabilities that arise from latory norms for capital ade- bad loan and low capital base. 01015205 inadequate irrigation for a comprehensive quacy. Under the PCA, the bank 3.8 perspective on states and crops. ICRA assigned ‘A+’ faces restrictions on extend- CRISIL’s Deficient Rainfall Impact rating to the proposed bond ing big-ticket loans and incur- Parameter (DRIP) does just that. The higher offering. ring expenses. TUR the CRISIL DRIP score, the more adverse the These rated instruments The assigned rating fac- 9.7 impact of deficient rains. We compare scores (tier-II bonds under Basel III) tors in the sizeable capital 2.8 not just with the previous year, but also with is a hybrid subordinated infusion by the Centre in the last five years’ average, to get a more instrument with equity-like Central Bank. The Centre 01015205 holistic picture. loss-absorption features. infused equity capital of 11.0 The latest DRIP scores show some stress They are expected to ~6,588 crore in FY19. It pro- in 4 states. The scores are the highest and also absorb losses once the “point poses to infuse ~3,300 crore JOWAR higher than trend in two of these - West of non-viability” (PONV) trig- in FY20. 7.8 Bengal and Bihar whereas the relatively ger is invoked. Moreover, the ratings are 0.8 better irrigated states of Haryana and Uttar Central Bank will be one supported by the majority Pradesh have scores that are higher on-year of the two public sector banks sovereign ownership of the 015205 10 but lower than trend. that will continue to work as Central Bank, where the 8.7 * This refers to the 36 sub-divisions in the country an independent bank to Centre holds 91.20 per cent where rainfall is tracked by IMD strengthen national presence. stake as on June 30. Source: Indian Meteorological Department, Ministry of Agriculture, CRISIL 6 ECONOMY MUMBAI | 29 SEPTEMBER 2019 1 > States’ farmer schemes making Allahabad Bank: The sheen that deeper inroads than PM-KISAN faded away ABHISHEK WAGHMARE & “We have all land records online, cate with prospective beneficiar- SANJEEB MUKHERJEE and put transparently on our web- ies. NAMRATA ACHARYA New Delhi, 28 September site. Land parcels where some infor- States have aggressively made Kolkata, 28 September mation is missing are clearly visible efforts to market their scheme, anjeet Singh (name on the portal, and helps us fill that reach farmers’ doorsteps and get In Satyajit Ray’s detective fiction changed), a farmer from gap faster,” she said. them enrolled in the respective Joi Baba Felunath, a hotel manager M Punjab’s Tarn Taran, was The Centre, on the other hand, scheme.If any discrepancy arose, makes the protagonist, Feluda, clueless why he was not able to avail used the data from agriculture the state department ensured that familiar with the crème de la crème the third instalment of money census, which is carried out every it was solved, so that no eligible of Kashi. under the nationwide cash transfer five years. farmers was left out. Among the important people of scheme, the Pradhan Mantri Krishi The biggest discrepancy in the The central scheme PM-KISAN, the town, the first reference is to an Sammaan Yojana (PM-KISAN). His agri-census is that it is developed on the other hand, requires the agent of Allahabad Bank, employees instalment was rejected due to, of from a survey of a sample. Secondly, beneficiary to get his bank account were known as agents then, fol- all things, his mother tongue. His it captures those cultivators too, who and identification details seeded lowed by prominent academics and Aadhaar authentication failed as do not have land records, who are to the scheme. businesspersons. That's the kind of records in the bank concerned were share-croppers with or without con- “Many persons who are count- prestige the mid-sized public sec- Allahabad Bank was nationalised in English, but Aadhaar details were tract and those just tilling the land. ed as farmers in the agriculture tor establishment commanded till in 1969 in Gurmukhi. Aadhaar seeding— Though the agriculture census census may not want to register about a few decades ago. linking it with the bank and the Just around 20% of 8.60 crore beneficiaries registered so far under gives the clearest idea of the number themselves as farmers under a cer- With Allahabad Bank set to be Bank was treated as a foreign enter- scheme—is a mandatory require- PM-KISAN have received their third instalment and the cut-off date of cultivators in the country, experts tain scheme since they fear losing amalgamated with Indian Bank, the prise, but its profits rose from ~16 ment under PM-KISAN for getting is November-end feel it is not the perfect kind of data out on other benefits,” said a gov- legacy of the oldest existing joint lakh in 1955 to ~17 lakh in 1960. the third installment of ~2,000. to assess beneficiaries at the unit lev- ernment official on condition of stock bank in India is set to fade. It In 1969 Allahabad Bank was But, Manjeet isn’t alone. Latest under Odisha’s Kalia scheme, and verified data of all farmers and land- el, due to a dearth of records. anonymity. also marks the end of a bank in nationalised, with the argument data shows that by September 20, Telangana’s Rythu Bandhu, have less labourers in Odisha. “Unnecessary paperwork drove which two states with contrasting being that as Allahabad Bank had around 36.1 million transactions for got their legitimate cash instalments “We carried out this exercise Fund flow crashes despite fall some farmers away while absentee identities — Uttar Pradesh and both its head office and registered the third instalment got rejected due by now, their official data show. between January and March, and in rejection rate landlords would anyway not turn West Bengal — took equal pride. office in Kolkata, for all practical to difficulties in authentication. The While PM-KISAN promises scrutinised data in the block-level PM-KISAN was riddled with the up,” he said. Today there are more protest purposes it was an Indian bank. third instalment pertains to August ~6,000 per year in three instalments and district-level committees. We problem of high rejection rates in marches against the amalgamation Thereafter, about £1.3 million was - November 2019. to each “farmer family”, Rythu received 12 million applications of the first instalment pertaining to the Better the lead time, faster the in Allahabad, where the bank was paid in annual instalments to “In some places, we received Bandhu promises ~5,000 per acre which 6.4 million have been December 2018-March 2019 period. implementation born, than in Kolkata, where its head- Standard Chartered Bank. complaints that the beneficiary per season to each “farm land hold- finalised as beneficiaries, and 5.1 Application of the eligible bene- Finally, both the states, Telangana quarters is located. Although in both By the late 1980s, most public- name is spelt differently on the er”. Odisha, under Kalia, promises million have received money to ficiary needs to go through certain and Odisha, spent considerable the cities the angst of losing a histor- sector banks were saddled with high Aadhaar and in the bank account. ~12,500 per year in a single tranche date,” said Garg. steps such as validation, making cor- time in finalising land records, ical identity runs deep, Allahabad non-performing assets (NPAs) due This is hindering the seeding to every “small and marginal This system helped Odisha rections and authentication in the linking bank accounts and saw its genesis. While in West Bengal, to poor operating efficiency and process, and cash is not getting farmer” in the state. remove most of the irregularities in public funds management system Aadhaar. there are close to 600 branches of the imprudent lending. Allahabad Bank transferred,” said a senior official. But why exactly is the central data, he said. (PFMS), which is the payment gate- “The lead time of two years bank, in UP the count is about 1,000. was no exception. By 1994-95, the So far (till September 28), only scheme lagging behind similar pro- Telangana did it differently. It way for all central funds. gave us the necessary window to Set up in 1865, Allahabad Bank gross NPA to credit stood at 26.9 per 24 per cent of the 73 million regis- grammes offered by states? While took two years to modernise its land But former agriculture secretary do all the groundwork, which has was mostly nurtured by the Scots, cent. The bank did an initial public tered beneficiaries have received all of them fall under the category of records, invested more public funds Siraj Hussain told Business been the key reason for faster known for their prudent banking. It offering in 2002, with its issue sub- their third instalment, the scheme cash transfer, the ways in which they in the process. The 2014-born state Standard that the rejection rate has implementation,” said Telangana’s was set up at a time when the scribed 3.68 times. website shows. Officials contend are implemented vary, and that generated first-hand data on all drastically dropped in the current Karuna. Presidency Banks ruled the roost, and By late 2017, gross NPAs were 15 that the universe has expanded to 86 makes all the difference. landholders in the state, envision- financial year. About 92 per cent of private-sector banks were short-lived. per cent and by January last year million now. However, officials are ing a state-wide farmer scheme “The rejection rate was 75 per Telangana’s land parcels are fully While a number of foreign banks had Allahabad Bank was under the RBI’s hopeful that the bottlenecks will be States use data more effectively back then. Today, more than 92 per cent lower in the second instal- “accounted for” (attached to a land established set-ups in India in the Prompt Corrective Action (PCA), cleared by November. A web option Odisha (Kalia) uses the decadal pop- cent of farmers already have digi- ment than in the first. Despite this, owner) at the moment, and the mid-19th century, booming trade in which put curbs on lending. In 2018- for corrections and faster seeding ulation Census of 2011, and applies tised Aadhaar-seeded pattadar the cash flow to beneficiaries is state expects to reach the 95-97 per Allahabad, well connected with the 19, the bank’s net loss expanded to has been introduced to smoothen some approximations to arrive at the passbooks (land records). lower in the second than the first,” cent level soon. The remaining, railways, necessitated a local bank. ~8,457.38 crore and its gross NPA the process. beneficiary universe. The state department made sure said Hussain. Telangana officials could be dis- The bank commenced operations ratio stood at 17.55 per cent. But difficulty in Aadhaar seeding “The state agriculture depart- that all entries and relevant agricul- Maharashtra and Uttar Pradesh puted or benami properties. on the first floor of a building in the The bank owns prestigious prop- is but one of the several reasons for ment further uses existing data from tural and revenue data for all land led the rate of rejections at the PFMS The Centre, on the other hand, busy Chowk area in Allahabad. In the erties in Parliament Street in New the slow progress of cash transfers the paddy procurement database, holders get filled. level at the time of the first instal- announced the scheme in the initial years, it cautiously stayed away Delhi, Peddar Road in Mumbai, and under PM-KISAN. Even for the sec- subsidy repository and food securi- With a good degree of land dis- ment, but were able to significantly interim Budget in February 2019, from profitable businesses like export India Exchange Place in Kolkata, ond instalment (April-July), where ty lists to reconfirm the beneficiar- pute resolutions, the accuracy of reduce it at the time of the second. without much concrete informa- finance and foreign exchange. In the apart from heritage properties in Aadhaar seeding was not mandato- ies,” Saurab Garg, principal secre- data has increased from 75 per cent tion on the number of beneficiar- first eight months, the net profit of places like Allahabad, Nainital, ry, only 57 per cent beneficiaries tary for agriculture in Odisha, told in the summer of 2018, to more than “You are the beneficiary” vs ies it intends to cater to. the bank was ~2,300, a book on the Meerut, Jhansi, and Kanpur. In a few have received cash. Business Standard. 90 per cent now, said Vakati “Please apply” history of Allahabad Bank, released months, as the buildings will get a In comparison, about 80 per cent In addition, the state department Karuna, director of land adminis- The Centre and states differ in the (Some names have been changed to on its 150th anniversary, revealed. new signage, it will also mark the end of farmer/labourer beneficiaries visited all panchayats (villages) and tration in Telangana. manner in which they communi- conceal identity) After independence, Allahabad of an era in Indian banking.

HEALTH 1 >

FIT & PROPER Your weekly health guide Shift work tied to poor mental A positive outlook may Blood pressure and its be good for your heart link to menopause health, suggests new study NICHOLAS BAKALAR mistic outlook had a 35 per 28 September cent lower risk for cardio- Warning signs of LISA RAPAPORT ly impact mental health. vascular events. high blood pressure 28 September It’s possible that people Having an optimistic mind- Nine studies with data in menopausal women with poor mental health set may reduce the risk for on all-cause mortality Following symptoms should eople who work night wound up in jobs with irreg- cardiovascular disease and included 188,599 partici- not be ignored in shifts or varied sched- ular schedules, rather than early death, a review of pants and found that opti- menopausal women as they P ules that disrupt their developing mood disorders studies has found. mists had a 14 per cent low- may be an indication of high sleep may be more likely to after they started working In previous studies, er risk of premature death blood pressure: develop depression than nights or inconsistent shifts. optimism has been shown to than the most pessimistic individuals with 9-to-5 jobs, a Even so, the results sug- be associated with a range of people. n Palpitations in the heart research review suggests. gest that workers and favourable physical health The studies had an NARESH TREHAN n Family history of heart Researchers examined employees should be aware outcomes and with greater average 14-year follow Chairman & Managing Director, disease data from seven previously of the potential for work success in work, -up and con- Medanta, The Medicity n Shortness of breath published studies of work schedules to impact mental school and trolled for Gurugram, Haryana n Heaviness in the chest schedules and mental health health, Torquati said. relationships. The study found various health n Headache involving a total of 28,438 “Your brain is programmed This new that compared and behavioural Menopause is the biological n Lightheadedness or participants. Overall, shift commitments,” Torquati said shift work, researchers report to sleep during night hours meta-analysis, with pessimists, characteristics, process of the end of the dizziness workers were 28 per cent by email. in the American Journal of (absence of light) to recover published in people with the including a wide menstrual cycle of a woman. n Diabetic or high cholesterol more likely to experience In particular, the study Public Health. from all the information it has JAMA Network most optimism range of cardio- It occurs due to a natural levels mental health problems than found, shift workers were Compared to women who processed during the day,” Open, included had a 35 per cent vascular disease decline in reproductive n Obstructive sleep apnea people with consistent week- 33 per cent more likely worked consistent weekday Torquati said. “Conversely, day 15 studies that lower risk for risk factors. hormones when a woman (sleep disorder in which day work schedules. to have depression than schedules, women who light tells your brain it’s time measured opti- cardiovascular “It seems reaches her 40s or 50s. breathing repeatedly stops “We know that shift-work people who didn’t worked nights or split to be awake and process mism and events optimists have Menopause leads to and starts) alters the circadian rhythm, work nights or irreg- Shift shifts were 78 per cent information.” pessimism by better health hormonal and biological that is our normal sleep-wake ular schedules. workers more likely to experi- “With shift-work you turn asking the level behaviours,” said changes in the body Preventive measures cycle which matches day- Shift workers also have ence adverse mental this cycle upside down: of agreement with such the lead author, Alan including weight gain and n Monitor weight night cycle,” said Luciana also had a higher a higher health outcomes. process information & being statements as “In uncertain Rozanski, a professor of hot flashes. Alongside these, fluctuations and blood Torquati, lead author of the chance of develop- chance of Men, however, awake at night, sleep during times, I usually expect medicine at the Mount Sinai it also raises the risk of pressure study and a researcher at ing anxiety, but in developing didn’t appear to have the day, and this means that the best,” or “I rarely expect School of Medicine. “They’re heart conditions such as n Consume healthy and bal- the University of Exeter in this case the differ- anxiety an increased risk of body functions that follow good things to happen more likely to exercise and atrial fibrillation (abnormal anced diet rich in the UK. ence was too small mental health issues such cycle are disrupted,” to me.” to have better diet. And there heart rhythm) and high fruits, vegetables and whole “This disruption can to rule out the pos- when they worked Torquati added. “This dis- Analysis of the 10 studies is evidence of direct blood pressure. grains make people moody and sibility that it was due nights or irregular schedules. ruption of functions can that looked at heart disease, biological effects — they n Increase consumption of irritable, and lead to social to chance. The study wasn’t a con- result in irritability, nervous- which pooled data on have less inflammation Menopause, a heart dairy products such isolation as shift-workers Women appeared partic- trolled experiment designed ness, depressed mood, and 209,436 people, found that and fewer metabolic disease risk as milk, yogurt and cheese time-off matches family and ularly vulnerable to the neg- to prove whether or how ultimately mental disorders.” compared with pessimists, abnormalities.” n The level of estrogen, the to ensure adequate intake friend’s work and life ative mental health effects of work schedules might direct- REUTERS people with the most opti- © 2019 The New York Times News Service hormone which plays of calcium, phosphorus, a crucial role in overall potassium, magnesium health, declines following and vitamins D and K menopause. Low estrogen n Reduce intake of processed levels impact the flow food and salt of blood and the heart needs n Get 150 minutes of exercise Ban on vapes will stay, says official as protests fizzle out to pump harder to ensure in a week proper blood circulation, n Do not smoke, and ADITYA KALRA, MANAS MISHRA International, as well as trig- the ban is essential to protect the ban can continue to be leading to increased blood avoid alcohol and 28 September gering court challenges by people as vaping can lead enforced are under way in the pressure. This in turn strains caffeine local firms. to nicotine addiction and eastern city of Kolkata, the heart n Keep stress in check India’s government has no Protesters convened on push users towards consum- including one by e-cigarette n Increasing age and declin- plan to roll back a ban on Saturday to call for vaping ing tobacco. Vapers say importer Plume Vapour. ing metabolism While it is necessary electronic cigarettes, an offi- devices to be regulated rather the devices help them stay The company, in a court mostly leads to women to maintain a healthy cial told Reuters on Saturday, than prohibited. But organis- away from more harmful filing seen by Reuters, argues becoming less active. This lifestyle to keep blood as protests against the move ers Association of Vapers tobacco cigarettes. that the ban will allow ciga- coupled with weight gain pressure levels in by vapers in six cities drew India said only about 400 More than 900,000 people rette companies to flourish contributes to high blood control, one should undergo scant support. people turned up across six die each year due to tobacco- while putting e-cigarette pressure leading to regular health check- India banned the sale and cities, adding that some related illnesses in India, the firms out of business. heart diseases ups for prevention. Women import of e-cigarettes this opponents of the ban feared government estimates. But New Delhi protester n Apart from this, men- with high blood pressure month, warning of an “epi- being targeted by police. the country has 106 million Aryaman Chaudhary, 25, said opausal women are should create a personalised demic” of vaping among At one protest in the capi- adult smokers, second only he stocked up on vape refills sensitive to salt and plan with their doctor young people. tal New Delhi, several people to China, making it a lucra- India banned the sale and import of e-cigarettes this month ahead of the ban, but was wor- excessive sodium in the to include diet, exercise The action has affected used vaping devices. Among tive potential market for com- ried he would eventually run body can lead to water and other lifestyle users nationwide and the them sat a child with a poster panies selling both tobacco was determined to stick by its anything like that,” the out. “I just want this regulat- retention, thereby creating changes to keep blood pres- plans of international com- that read: “I don’t want my and vaping products. ban, despite the protests and official said. ed, not banned ... Everybody pressure on the blood sure and heart disease in panies including Juul Labs dad to be a smoker”. An Indian health ministry court challenges. “There is no Two court challenges that has an addiction.” vessels check. Inc and Philip Morris The government argues official said the government question of a rollback or could be pivotal for whether REUTERS MUMBAI | 29 SEPTEMBER 2019 IN DEPTH 7 . < The voices of reason on climate As countries reiterate old promises to control climate change, the young are showing the way

DISHA SHETTY and aims for 100 per cent renewable electricity generation by 2023. t the United Nations (UN) German Chancellor Angela Merkel emergency climate summit, said her country would phase out coal 16 children, including India’s by 2038, an announcement she had ARidhima Pandey, said they made earlier this year. would petition the UN against five big carbon polluters in the world — Businesses pledge Argentina, Brazil, France, Germany and Recognising the need to rope in corpo- Turkey — for violating their rights of rations, the UN has made an effort to children by failing to adequately reduce encourage them to set ambitious tar- emissions. gets. Eighty seven major corporations— Pandey, 11, is from Haridwar in with a combined market capitalisation Uttarakhand, and had, in 2017, filed a of over $2.3 trillion and annual direct case against the Indian government at emissions equivalent to 73 coal-fired the National Green Tribunal for failing power plants — are taking action to to take action against climate change. align their businesses with the Paris cli- As countries reiterated old promis- mate summit targets. es to control climate change, the youth, Banks financing development proj- led by 16-year-old Swedish climate ects and CEOs of companies said they activist Greta Thunberg, emerged as would stop investing in coal. “Coal is climate leaders. “I should be back in out of the window for funding,” said school on the other side of the ocean. Peter Hiliges, head, climate change at Yet you come to us young people for the German bank KfW that funds devel- hope. How dare you?” said Thunberg. opment projects. Oliver Bäte, the CEO Every country, except the United of Allianz, an insurance company, reit- States, has ratified the UN Convention erated their stand of not selling insur- on the Rights of the Child. Of those ance to companies investing in coal. countries, 45 have agreed to an addi- In a recorded message, Pope tional protocol that allows children to Francis called the post-industrial era petition the UN directly about treaty the most “irresponsible” and ques- violations. tioned the political will to mitigate the Within that group of 45, Argentina, impact of climate change. Brazil, France, Germany, and Turkey The UN has asked governments to are some of the biggest emitters of the end all subsidies to fossil fuel compa- pollution that causes climate change. nies by 2020, and incentivise renew- None of the five is on a path needed to ables. “After all, is it common sense to keep the planet from heating over 1.5 or give trillions in hard-earned taxpay- 2 degrees Celsius by the turn of the ers’ money to the fossil fuel industry century. to boost hurricanes, spread tropical The petition by children comes on diseases, and heighten conflict?” the heels of the latest report by the Gueterres asked at the climate World Meteorological Organization summit. (WMO) that said global temperature “Fossil fuel companies must pay to has risen by 1.1 degrees Celsius since clean up the mess they have made. systematic record-keeping began in Rich country governments must stop 1850, and by 0.2 degrees Celsius com- Children take part in a global protest against climate change in New Delh giving handouts to those companies. pared to 2011-2015. Instead, they need to support com- “Climate change causes and several years ago. speak at the climate summit, said emergency climate summit, but most munities on the frontline of the cli- impacts are increasing rather than Leena Srivastava, outgoing vice-chan- AMBIVALENT ABOUT countries, including India, as we mate emergency rather than those slowing down,” said Petteri Taalas, India’s plan cellor of Delhi-based The Energy and explained above, only reiterated old who created the crisis in the first secretary general of the WMO. Despite efforts, CO2 (carbon dioxide) Resources Institute (TERI) School of CLIMATE promises. place,” said Harjeet Singh, global lead Antonio Gueterres, the UN secre- emissions continue to rise at a 2 per Advanced Studies, and co-chair of the „ India to scale up renewable energy “While countries were expected to on climate change at ActionAid, a tary general, has praised Thunberg cent growth rate. Currently China is Science Advisory Group of the UN to 175 gigawatt by 2022 come to the summit to announce that South Africa based nonprofit. for her leadership, calling it “absolute- the highest emitter of earth warming Climate Summit. “If you look at the they would enhance their climate The UN has also called for no new „ New Zealand to plant a billion trees ly remarkable”. The UN credits the greenhouse gases (GHGs), followed totality of it and not just one part of it by 2028; 100 per cent renewable ambition, most of the major coal plants from 2020, asking coun- pressure from the youth for pushing by the United States (US), the then I think we deserve to be on the economies fell woefully short. Their tries to turn to renewable energy climate action across European Union (EU) and platform.” electricity generation by 2023 lack of ambition stands in sharp con- instead. India currently gets over 76 countries. India. “Science tells us that on our current „ Pakistan to plant six billion trast with the growing demand for per cent of its energy needs from coal, Closer home, 600 mil- Prime Minister Narendra path, we face at least 3 degrees Celsius new trees action around the world,” said Andrew as IndiaSpend reported earlier. Only lion people living in the Modi was one of more than of global heating by the end of the cen- Steer, President & CEO, World one-twentieth of its energy comes „ Germany to phase out coal by 2038 Indo-Gangetic plain stand AN 90 speakers at the climate tury,” said UN Secretary-General Resources Institute (WRI), a global from renewables, although it is a fast- to be affected, as global summit. India will scale up Guterres. He had set an ambitious tar- „ Allianz to stop selling insurance to research organisation. growing segment. PM Modi was silent warming causes Himalayan indiaspend.org renewable energy to 175 get for those in attendance: Reduce companies investing in coal Pakistan’s Prime Minister Imran on coal during his UN address. glaciers to melt, threaten- STORY gigawatt (GW) by 2022 and to carbon emissions by 45 per cent by Khan repeated his earlier promise of India and China continue to open „ The UN has called for no new coal ing the steady flow of water 450 GW in the coming years, 2030 and make it net-zero by 2050. planting 6 billion new trees. new coal plants despite the 2020 dead- to the Ganga and its tributaries, he said, without giving a specific dead- Policies to lower GHG emissions plants from 2020 The US President, Donald Trump, line set by the UN, as these countries according to World Bank estimates. line. He also said that India was must triple to meet the 2 degrees who was invited but had said he would have to balance the energy needs of Nearly 148 million Indians live in focussing on increasing the use of bio- Celsius target and increase fivefold to mate assessments had estimated near- skip the climate summit and send a the underserved population while areas that are “severe hotspots” of cli- fuels and was successful in providing meet the 1.5 degrees Celsius target set ly a decade ago and that is something delegation instead, made a brief meeting climate targets. mate change and are already wit- 150 million families with clean cook- by the UN, found the latest WMO we need to worry about.” appearance as PM Modi took to the “Yes, there are plans to build coal- nessing large-scale changes, as a spe- ing gas. He reaffirmed India’s commit- report released on September 22 in So far 66 countries have said they stage. The US, one of the largest green- fired power plants but we are doing cial IndiaSpend reporting project has ment against single-use plastic but said New York. will step up their Nationally house emitters, has pulled out of the very well in terms of renewable ener- chronicled. Climate change has led to nothing about reducing the use of coal, “We are at risk of crossing several Determined Targets or NDCs — tar- Paris Agreement. gy expansion,” said Srivastava of TERI a rise in extreme events like floods which has been flagged as a concern in critical tipping points in the country gets to reduce carbon emissions that New Zealand Prime Minister on India. and heatwaves. It threatens India’s fast-growing India and China. systems,” said Srivastava of TERI. each country sets for itself under the Jacinda Ardern spoke of her country’s water security and could widen India is one of the few countries on “There is also in the science commu- 2015 Paris Agreement. prior commitment to plant a billion inequality. track to meet the targets it set itself at nity a greater recognition of the fact The UN had said that only coun- trees by 2028. She reiterated that New Reprinted with permission from Yet, at the summit, India only reit- the 2015 Paris Summit and justifies the that climate change impacts are hit- tries with strong plans would be Zealand has also stopped issuing per- Indiaspend.org, a data-driven not-for erated commitments already made platform the UN has given for it to ting harder and sooner than what cli- allowed to speak at the New York mits for offshore oil and gas exploration profit organisation

the benefit of future generations vis-à- vis that of the current generation and In memory of Marty Weitzman how that rate changes over time. (The IMO more you value the current genera- A man intolerant of humbug and pomposity, he was undoubtedly one tion’s welfare, the higher in general is that discount rate). Some years back IMRAN KHAN’S SPEECH AT UNGA of the greatest environmental economists in the world today I remember receiving, like several Dr David Frawley@davidfrawleyved other economists in the field, an Imran Khan speaks with anger, threats of violence PRANAB BARDHAN email from him asking us for our vote and nuclear jihad, criticizing America. on the appropriate social rate of dis- @NarendraModi calls for ending terrorism and In the midst of the hullabaloo around count. I responded to him, with promoting world peace and harmony, thanking the United Nations Climate Action tongue in cheek, saying, “Marty, of America for his visit. Summit I kept on remembering my course, it is 2 per cent!” Difference between India and Pak is obvious. friend Marty Weitzman, one of the He has also important papers on great environmental economists, who the economic theory of how to pre- Shehla Rashid@Shehla_Rashid passed away a few weeks back. There are serve bio-diversity under strict budg- Modi govt's actions have created a huge soft I first met Marty around the time I speculations et constraints (one of them is appro- corner for Pakistan in Kashmir. Three people from started teaching at MIT many decades about his priately titled, “Noah’s Ark”, but Kashmir told me over the phone that, after Imran back. The first thing that struck me falling into published in a technical journal like Prime Minister Narendra Modi with US Khan's UNGA speech last night, there were rallies, about him was his accent — it sound- depression Econometrica). All of these papers are President Donald Trump in New York celebrations, firecrackers in Kashmir. ed like a deep New York street drawl, after being marked by deep theoretical insights There's no diplomatic way of saying this! which at first I had some difficulty in passed over by along with practical operational ideas MODI’S US VISIT following. (I don’t know if his early the Nobel for policy implementation. Ashok Swain@ashoswai Smita Prakash@smitaprakash years in a New York orphanage was Committee last He was intolerant of humbug and While some youngsters protested outside Sharp and stinging reply by Vidisha Maitra, India responsible for this. His mother died October pomposity. When he was teaching at #HowdyModi venue, their parents were inside to on Imran Khan speech at the #UNGA. She calls when he was one-year old, and his Yale after his Ph.D at MIT, I asked him, the stadium, cheering for Modi. Trump kept Modi him by his full name Imran Khan Niazi. It won't be father recently back from his military now, he told me, he was surprised to paper was, of course, a path-breaking as Yale compared to MIT should have waiting for one hour too. lost on Pakistanis or on Imran who never uses his service in the War, could not take care find how some of the issues Hayek paper. Until then most of us believed in more of the classical humanities fac- last name. It was Lt Gen Niazi who surrendered to of him, and gave him over to an raised were important, and he felt com- the simple duality of the price-quanti- ulty, if he interacts with them, given Vedmalik@Vedmalik1 the Indian Army in 1971. orphanage. Weitzman is actually the pelled to erase those profane markings. ty relation, which he showed breaking his wide-ranging interests. He deri- Modi visit to USA. Wish Indian TV channels would surname of his foster parents.) When in the early 1990s I wrote an arti- down when there is uncertainty. Later, sively told me, when he saw them in not go overboard on its impact on India- Tarek Fatah@TarekFatah But soon I got used to his accent cle about how the old idea of market this was applied in an important way the faculty club, they were in the habit Pakistan-USA relations & on Trump's responses.. After Pakistan's PM @ImranKhanPTI and his charming informality. At that socialism (using the market mecha- in controlling environmental pollu- of speaking only in Latin, unintelligi- Duniya men bahut kuchh aur bhi hai.... threatened a nuclear war across the world in a time he was a leftist, fresh from his nism to achieve objectives of social jus- tion, quantitative controls sometimes ble to him, a mere New York Jew! speech to the UN General Assembly, India's First formative student years in the tumul- tice) needs to be reformulated to take dominating the tax-subsidy solution It was a great shock to me when I Dr David Frawley@davidfrawleyved Secretary responded with measured words that tuous sixties. He was a technically into account many of the incentive, with the prevailing uncertainty. heard that he took his own life. There Even American President Donald Trump, not reflect a civized democracy, not a barbaric sophisticated economist, but unlike information and organisational issues He gradually moved to the field of are speculations about his falling into known for supporting environmental protection, medeival jihadi state i.e. Pakistan. many others of his ilk, he grappled raised by Hayek, Marty was a particu- environmental economics, soon depression after being passed over comes to hear @narendramodi with big systemic issues, which par- larly appreciative reader. becoming a leader in the field, chal- by the Nobel Committee last October 's speech at the UN Climate Summit. PMC BANK CRISIS ticularly attracted me. We spent many He once attended a seminar I gave lenging some of the standard cost-ben- when they awarded the Prize on envi- Faye DSouza@fayedsouza afternoons and evenings discussing on the theory of sharecropping in agri- efit calculations, when we cannot ronmental economics. If that is true, Shekhar Gupta@ShekharGupta "RBI has DECIDED to ALLOW depositors to those issues, but unlike many on the culture. Some years later he told me ignore the small but not entirely neg- it is one more example of the simple Modi has convinced the world except Turkey & withdraw"...... their own , hard earned, tax paid left he was a maverick, spurning clichés that the more he thought about the ligible probability (in “fat-tailed distri- fact that the Nobel Prize has China that Kashmir is India’s internal affair... , legal money...... "not exceeding Rs 10,000" and thinking always out of the box. For idea of sharecropping, the more he butions”) of catastrophic risk in the increased the sum total of human But enough nations, incl the US, are watching Shall we all clap for you now? #PMC_BANK a time his main specialisation was com- became attracted to the application matter of climate change from green- unhappiness. (Many years back what happens in Valley next. Global patience with parative economic systems; he even of the general idea to a systemic level, house gas emissions. So his pleading when I said this to Amartya Sen, he the lockdown & arrests will soon run out Srivatsa@srivatsay learned Russian for that purpose. reforming capitalism with a share for control of those emissions became told me that he agrees to this, but he All 12 directors of #PMCBank have links with BJP Over the years, his economics economy (he later wrote a book on the particularly urgent and influential. The would not put it in such crass utili- Rajdeep Sardesai@sardesairajdeep Remember, Ahmedabad District Cooperative became somewhat less radical. He once subject), where through profit-shar- main message of his 2015 book, Climate tarian terms). Give him a mike and a captive audience, Bank, with Amit Shah as Director, had highest told me that in a recent visit to his par- ing labour and capital can coordinate Shock (with his student, Gernot Prize or not, very few people will @narendramodi. shines more often than not. deposits of ?745 cr in just five days after DeMo! ents’ summer cottage he discovered on to resolve the issues of unemployment Wagner) is: “Most everything we know doubt that we have just lost one of the Liked the ‘yodha-buddha’ analogy.. also, the BJP using co-operative banks to loot people' a shelf his heavily marked old copy of and stagnation. This was typical of tells us climate change is bad. Most most brilliant environmental econo- Tamil quote. s hard earned money? Hayek’s Road to Serfdom. In his youth- Marty, a brilliant exploration in a new everything we don’t know tells us it’s mists in the world. ful radical days he had marked many of direction, following on the germ of an probably much worse.” Hayek’s passages there with loud dis- age-old idea. He also thought deeply about the The writer is professor of Graduate School missive comments like “BS-BS-BS”. But His “Prices vs. Quantities” 1974 rate at which society should discount at University of California, Berkeley 8 WORLD MUMBAI | 29 SEPTEMBER 2019 1 > Post WeWork, IPO market slams HK protesters mark five years since ‘Umbrella’ brakes on unprofitable companies street movement JOSHUA FRANKLIN & LANCE TUPPER be more selective about which 28 September loss-making companies they are willing to back. ompanies making their Peloton reported rapid top- debut on the U.S. stock line growth of 110% during the Cmarket are getting a fiscal year that ended June 30. rough welcome, especially if But the company also showed they are losing money, casting a negative operating leverage, shadow over the calendar for with operating expenses surg- initial public offerings for the ing 147% over the prior year. rest of the year. Loss-making teeth-align- The surprise postponement ment company of the WeWork IPO has under- SmileDirectClub SDC.O this scored how confidence is erod- month became the first U.S. IPO ing in the market both for com- in three years to price above its panies looking to raise capital target range and close down on and investors. its first trading day, according to A more discerning market research firm Renaissance for initial public offerings con- Capital. tinued to punish Peloton Interactive Inc PTON.O on Beyond Meat, Pinterest Friday, a day after it began trad- surge ing. Shares of the fitness startup SmileDirectClub is the worst closed down 2% at $25.24 and performer among $1 billion- are now off 13% from their IPO plus IPO deals, with its stock price. The company is now trad- down 43% since its debut earli- ing 15% below its Wednesday er this month, according to IPO price. Dealogic. Anti-government protesters shield themselves using umbrellas during a protest in Before trading began on The best performer in that quarter has focused on a deal created and investors can sell different strategy,’” said David Hong Kong on Saturday REUTERS Friday, five of this year’s eight group is social media company that failed to come to fruition - their stakes while saving mil- Ethridge, U.S. IPO services deals of $1 billion or more were Pinterest Inc (PINS.N), whose the planned IPO of WeWork lions of dollars in underwriting leader at audit firm PwC. trading below their IPO price, shares are up 39% since their parent We Company. fees. While WeWork’s stock never JESSIE PANG & DONNY KWOK protests gridlocked the city for to do so again on Tuesday. according to research firm April debut. Revenue at The company had aimed to This month the company made it to the market, it did 28 September 79 days in 2014 but failed to Britain says it has a legal Dealogic. On a broader scale, Pinterest surged 58% to $463.2 launch its IPO earlier in said it raked in more than $1 bil- float a $669 million junk bond wrest concessions from Beijing. responsibility to ensure China only about 27% of the 112 deals million in the first half of 2019. September, then postponed lion in second-quarter revenue. in May 2018, and that plunged Thousands of protesters chant- “They are not our chil- abides by the 1984 Sino-British of $100 million or more were Net cash used in operations plans to list until later in 2019, It has not given details on to near a record-low price on ed anti-government slogans dren,” China supporter Yau Joint Declaration. At the same trading below their IPO price. during that period narrowed to before replacing its whether it was prof- Friday. and sang their “Glory to Hong Mei-kwang said of the front- time, it is pinning its hopes on Venture capital firms and $16 million from a year-ago $29 chief executive offi- The surprise itable. The 7.875% note due in May Kong” anthem on Saturday, line activists. “Because at this closer trade and investment other backers of many of these million, according to Pinterest’s cer and saying it postponement of Taking a lesson 2025 96208LAA9= fell 4 cents marking the fifth anniversary age, they should be studying, cooperation with China after high profile “unicorns” - com- financial statements. was reviewing its the WeWork IPO from the struggles on the dollar to 87 cents, just 1.5 of the “Umbrella” pro-democ- not running to the airport, it leaves the European Union, panies valued at $1 billion or Shares of Beyond Meat Inc timetable to go has underscored earlier in 2019 of cents from its record low of 85.5 racy movement as protests hitting people, hitting the due at the end of October. more in the private market - (BYND.O), which came to mar- public. how confidence ride-hailing compa- cents in early January. which have gridlocked the ter- police, insulting people. That Protests were sparked in had a higher tolerance for the ket in May in a small $277 mil- Endeavor is eroding in the nies Uber Its yield, which moves in the ritory for weeks continued. is not right.” June by planned legislation, path to profitability, but even- lion deal, have surged more Group Holdings market both Technologies opposite direction, shot above Families gathered at the A pro-democracy protester since withdrawn, that would tually they wanted to mone- than 500% since the IPO. The (EDR.N), an enter- for companies (UBER.N) and Lyft 11%. The spread of its yield over harbourside Tamar Park, in who only gave his name as have allowed the extradition of tise their stakes. company’s operating expenses tainment and tal- looking to raise Inc (LYFT.O), which U.S. Treasury debt, a measure of front of central government Wong defended the use of vio- suspected criminals to main- more than doubled during the ent agency compa- capital and have no stated the added compensation offices and the Legislative lence. “We know that they will land China. But they have Investors get more selective first half of the year, but that ny backed by investors timetable for demanded by investors to hold Council, both of which have not listen if we rally in peace since expanded into a broader In the past, public market was outpaced by top-line Hollywood power becoming prof- the risky paper relative to safer come under attack for more because we are not on the pro-democracy movement. investors have typically expect- growth that more than tripled. broker Ari Emanuel with a itable, investors have started to government securities, mush- than three months, sparking same level.” One of the leaders of the ed companies to become prof- track record of losses, made a push back on companies with a roomed to nearly 9.50 percent- violent street battles with Protesters spent the after- protests, the bespectacled itable within 18 months or so of Average IPO return drops last-minute decision to aban- history of steep losses. age points, the widest ever. police. noon rebuilding “Lennon Joshua Wong, 22, said on an IPO. This timeline has been Meanwhile, the average IPO don its IPO due to the tough “It will be a dialogue A month ago, the bond had “It’s a special day for Hong Walls” of anti- Saturday he will relaxed with money managers return in 2019 was now about market conditions. among bankers and boards rallied to a record high price of Kong protesters. We will stick government graf- A series of protests run for local dis- eager to add businesses with 6% at the end of trading Friday, Home rental giant Airbnb and senior management 105 on We Co’s preparations for together to fight for freedom,” fiti, some of for and against trict council elec- fast-growing revenue to their down from more than 30% at has said it plans to list its shares teams where they say, ‘these the IPO. As the deal fell apart in said Sam, 33, dressed in black which were torn Communist Party tions in portfolios. the end of June and more than in 2020 but provided no details were isolated and not compa- recent weeks, the bond has slid and wearing a mask. “Most down by pro- rulers in Beijing is November. Recent deals, however, sug- 18% about two weeks ago. and is widely expected to do a rable,’ or say ‘we have a senti- on concerns about the compa- people think Hong Kong was Beijing activists planned for the “It’s time to let gest an uncertain economic In the United States, much direct listing to go public. In a ment shift and we need to be ny’s lack of access to fresh dying after five years, but last weekend. Chinese-ruled city Emperor Xi outlook is pushing investors to of the attention in the third direct listing no new shares are more conservative and use a funding. REUTERS many people are still fighting The large ahead of the 70th (Chinese Presi- for Hong Kong.” mosaics of Post-it anniversary of the dent Xi Jinping) A series of protests for and notes calling for People’s Republic on be aware that against Communist Party democracy have Tuesday, including now is our battle,” rulers in Beijing is planned for cropped up in at the consulate of he told reporters. the Chinese-ruled city ahead underpasses, out- former colonial “We stand in soli- House Democrats subpoena Pompeo of the 70th anniversary of the side shopping power Britain darity, we stand People’s Republic on Tuesday, centres, at bus as one.” including at the consulate of stops and universities and out- The U.S. Congressional- former colonial power Britain. side the Legislative Council. Executive Commission on for Ukraine documents The Hong Kong building of Anti-government protest- China marked the Umbrella the Chinese state-owned ers are angry about what they anniversary with a statement PATRICIA ZENGERLE & IDREES ALI to sources familiar with the matter. election. a summary of Trump’s July 25 phone investment company CITIC, see as creeping Chinese inter- denouncing the “accelerated 28 September The reason for Volker’s resignation Trump has reacted furiously to the call in which he asked Zelenskiy to next to the Legislative Council, ference in Hong Kong, which erosion” of Hong Kong’s was not immediately known. The State impeachment inquiry, arguing he did investigate Biden and his son Hunter ran a huge purple LED-lit ban- returned to China in 1997 autonomy. Democrats in the U.S. House of Department did not immediately nothing wrong, and accusing Biden ahead of the November 2020 ner down its front commemo- under a “one country, two sys- “We call on the Hong Kong Representatives who are pursuing an respond to a request for comment on Democrats of launching a politically presidential election - a call at the heart rating National Day. tems” formula guaranteeing government to make the selec- impeachment inquiry against the subpoena or Volker’s resignation. motivated “witch hunt.” More than 300 of the whistleblower’s complaint. Anti-government protest- freedoms that are not enjoyed tion of the Chief Executive and President Donald Trump forged ahead The committees announced the former national security officials from Hunter Biden served on the board ers have attacked the legisla- on the mainland. the election of all members of with their probe on Friday, issuing a subpoena after the Trump both Republican and of a Ukrainian gas company called ture, Beijing’s main Liaison China dismisses the accu- the Legislative Council by uni- subpoena to Secretary of State Mike administration missed a As the subpoena Democratic administra- Burisma when Biden was in office. Office, occupied the airport, sation and has accused foreign versal suffrage a priority and Pompeo for documents concerning Thursday deadline to pro- was announced, tions on Friday endorsed There has been no evidence that the thrown petrol bombs at police, governments, including the take concrete steps to contact with the Ukrainian govern- vide documents and infor- Trump’s re- the impeachment inquiry, former vice president used his position vandalised metro stations and United States and Britain, of strengthen Hong Kong’s ment. mation about contacts with election campaign saying they did not pre- to help his son in the Ukraine matter. set street fires in more than fanning anti-China sentiment. autonomy,” it said. Following a whistleblower com- Ukrainian officials, as well said it would judge the outcome but Ukraine’s anti-corruption investi- three months of unrest. “Lennon Walls carry the Dan Garrett, a U.S. academ- plaint that Trump, a Republican, as a July 25 telephone call spend $10 million wanted to know more gation agency said on Friday it was Police have responded with spirit of civil disobedience ic who gave evidence before solicited a political favour from between Trump and next week airing facts. investigating permits given to compa- tear gas, water cannon, rubber from the Umbrella move- the commission, said on Ukraine’s president that could help Ukrainian President an ad called As the subpoena was nies managed by Burisma during 2010- bullets and occasional live ment,” said pro-democracy Twitter he was not allowed to him get re-elected, the lawmakers are Volodymyr Zelenskiy. ‘Biden corruption’ announced, Trump’s re- 2012. Hunter Biden was hired in 2014. rounds fired into the air. protester Kelvin Law, 24. land in Hong Kong on investigating concerns that Trump’s That call is central to the election campaign said it The agency said it would only go fur- The MTR subway system “I am not sure when this Thursday for the first time in actions have jeopardised national secu- impeachment investigation that Nancy would spend $10 million next week air- ther if compelling new testimony closed entrances to some sta- protest will end. Either we win 20 years of visiting and living rity and the integrity of U.S. elections. Pelosi, the speaker of the Democratic- ing an ad called “Biden corruption” on emerged. tions on Saturday to prevent or we lose. But as long as we in the territory. The House Foreign Affairs, led House, announced this week. television and websites that accuses The whistleblower raised concerns fresh attacks. There were are united and fight, genera- Official festivities for Intelligence and Oversight Committees The impeachment inquiry has cast Democrats of playing politics with the about interactions that Trump’s per- some small scuffles with tion after generation, we can National Day have been scaled also scheduled depositions for five a new pall over Trump’s presidency just impeachment investigation. sonal lawyer Rudolph Giuliani - who police who responded with achieve democracy.” back, with authorities keen to State Department officials over the next months after he emerged from the Former Democratic Vice President has promoted theories about Biden’s pepper spray. Large, peaceful Protesters appealed to avoid embarrassing Beijing just two weeks, including Kurt Volker, shadow cast by Special Counsel Robert Joe Biden is Trump’s leading rival in the activities in Ukraine - had with former gatherings have often turned Britain two weeks ago to rein in as Xi seeks to project an image Trump’s envoy to Ukraine. Volker Mueller’s investigation into whether race for the 2020 presidential election. and current Ukrainian officials. violent at night. China and ensure it respects of national strength and unity. resigned his post on Friday, according he colluded with Russia in the 2016 The White House this week released REUTERS The student-led Umbrella the city’s freedoms. They plan REUTERS The most beautiful Ferrari in a decade pays tribute to race cars past

HANNAH ELLIOT clutch gearbox, and 568 pound- I shouldn’t have been so hood increases downforce by 28 September feet of torque, it’s more powerful surprised; the F8 Tributo is the 15%, redirecting high pressure and efficient than its most devastatingly beautiful car flowing up from the bumper and It’s comforting to know that predecessor, the 488 GTB. Turbo Ferrari has made in a decade. It passing it over the front of the some things never change. lag simply doesn’t exist here. combines winning elements from car. Forged “starburst” wheels Markets may crumble, social I looked for it, too. But as I previous models into a new are the exclamation mark on the media may demolish civil navigated the on-ramp at 30 mph package, pulling from a storied whole thing. The F8 Tributo society, but fresh pasta, good and pushed through fifth, sixth, history to make an automobile looks feminine and strong, wine, and the courtesy of Italian and seventh gears on my way to that’s simultaneously familiar, happily formidable, even playful. drivers who move over on the A1 120 mph, the F8 Tributo reassuringly elegant, and But the car will be serious for when they’ve got a Ferrari on accelerated without hesitation aggressively modern. To wit: The Ferrari’s bottom line. It’s one of a their tail—these things prevail and with absolute control. (Top new dual round rear taillights are record five model revamps this across generations. speed is 211 mph.) Climbing into like those from the F40 of the late year, overhauls that will allow it They’re like the Colosseum. the craggy Apennine mountains 1980s and early ’90s, as are the to charge more for most of its Or the V-8 turbo engine. That’s outside Modena, powering louvers in the cover atop the cars. The marque is also making the throbbing heart inside around narrow single-lane roads, legendary V-8 engine. Made from more of them; it hopes to ship Ferrari NV’s 2020 F8 Tributo, a the car handled with laserlike ultralight Lexan, the clear screen 10,000 in 2019, up from 9,251 last new offering from the 70-year- finesse. My drive was has three slits at the center that year, says Chief Executive Officer old company. As the name incrementally smoother, more help extract hot air from the Louis Camilleri. All this is aimed suggests, the $270,530 coupe agile, and more refined in all engine compartment and allow at higher profits. pays tribute to the almost-sacred kinds of turns than what I’d for admiration of the engine itself. With the F8 Tributo, Ferrari engines that have powered the experienced with its Elsewhere, the vertical has taken its beloved diamond V- automaker’s most successful cars predecessors. And with a zero to headlights of the 488 GTB are 8 engine, polished it, and placed since its first mid-engine V-8, in 62 mph sprint time of 2.9 The author driving the 2020 Ferrari F8 Tributo in the hills above Fiorano Modenese, Italy now brilliant horizontal LEDs it in a new setting. Thank God, the 1975 Ferrari 308 GTB. seconds, the car is lethally quick. and have another practical some good things remain— The F8 Tributo is where I A new engine note sings a cheery Tributo’s weight. At just 2,932 off another 17. after all, the old country—she purpose—to let new brake- though top brass declined to tell found myself in early cantata rather than the growls or pounds, the car is 48 pounds I pulled off to take some gesticulated energetically. At cooling intake vents be placed me, it may just be the last time we September—yes, on a sunny burps or wheezes of other cars in lighter than the 488 GTB. photos at one point, and within first, I thought she was yelling at outside the bumper. The air see a non-hybrid engine on a section of the A1 that runs from its class; the F8 Tributo made me Advanced components derived seconds an elderly woman me for parking in front of her intakes, which were etched on Ferrari of this mettle. Modena to Milan and caters to feel like a maestro conducting from Formula 1 technology have emerged from her bleached- home. Then I caught the word the flanks of other recent All of Italy pays respect—and the most impatient of sightseers. Italy’s grandest orchestra. shaved off mass: A novel exhaust stone home, window shutters “bellissima!” She pointed at the Ferraris, have been moved near moves aside in tribute. Deliveries With a 3.9-liter, 711-horsepower The method behind the manifold saves 22 pounds; laced with old Italian roses. In car and kissed her fingers like a the spoiler. A single massive start in December. engine, a seven-speed dual- music, as it were, is the F8 titanium connecting rods knock her skirt and stockings—this is, chef. engine air intake duct on the BLOOMBERG MUMBAI | 29 SEPTEMBER 2019 WORLD 9 . < Moment of truth coming Wells Fargo taps one-time for Brexit, warns EU Dimon protégé Scharf to lead turnaround GABRIELA BACZYNSKA & KATE HOLTON 28 September IMANI MOISE Parker will return to his rish Foreign Minister Simon Coveney 28 September previous role of general coun- warned on Friday that time was run- sel and help the company I ning out for Britain and the European After a difficult, months-long through its transition. Union to hammer out a divorce deal with search for a new chief execu- “They really realised that the British Brexit minister also saying the tive, scandal-plagued Wells they needed a competent CEO moment of truth was approaching. Fargo & Co (WFC.N) named as who could handle the issues at Prime Minister Boris Johnson has its next leader Charles Scharf, Wells and the regulators, and vowed Britain will leave the EU on Oct. 31 a one-time Jamie Dimon pro- it didn’t matter – race, gender, whether or not a deal has been agreed tégé known on Wall Street as a those things were secondary,” with the bloc, and while both sides say detail-oriented number one of the sources familiar they are keen to reach an agreement, cruncher who excels in with the matter said, referring there is little sign of the deadlock being streamlining operations. to the board. broken. Scharf, 54, who joins the Wells Fargo spokesman Johnson’s opponents say leaving the fourth-largest U.S. bank next declined to comment on the EU without a deal to keep most of its trad- month, has been the CEO of nature of the search process. A ing arrangements in place would plunge Bank of New York Mellon spokesman for the Office of Britain into economic chaos. The gov- (BK.N) and Visa Inc (V.N). the Comptroller of Currency ernment says it has made preparations He served as a top lieu- said the banking regulator had to avoid serious disruption. tenant to JPMorgan Chase signed off on Scharf’s hiring, The EU agreed a withdrawal package and Co’s (JPM.N) Dimon dur- clearing a major hurdle in the with former Prime Minister Theresa May ing the financial crisis of 2008. executive search process. but this was rejected three times by the He will become Wells Fargo’s On Wall Street, Scharf is known as a detail-oriented number Two sources who know British parliament over the “Irish back- British Prime Minister Boris Johnson’s opponents say leaving the EU without a deal to third CEO in as many years cruncher who excels in streamlining operations Scharf describe him as some- stop” — an insurance policy to prevent the keep most of its trading arrangements in place would plunge Britain into economic chaos after a wide-ranging sales one more at home with num- return of a hard border between the practices scandal. billions of dollars in fines and ed only for two years. bers. When he became the British province of Northern Ireland and believe would be calamitous. try remains utterly divided with animos- Some analysts said penalties. He added that at Bank of CEO at Visa, people joked the the Irish Republic. Johnson has repeatedly said he would ity reaching ever new levels. Scharf’s departure from Bank Its core businesses and New York, Scharf had gone company had two chief finan- After a meeting with EU Brexit nego- abide by the law, which he has dubbed the Parliament reached boiling point on of New York Mellon, where he shares have lagged. “on a hiring spree to bring in cial officers - the actual CFO tiator Michel Barnier in Brussels, Ireland’s “surrender act”, but Britain would defi- Wednesday when Johnson and his oppo- served only for two years, From 2016-2018, Wells his people, and now that he and Scharf, one of the sources Coveney said negotiations had to be on nitely leave on Oct. 31, without explaining nents spent hours hurling allegations of would hurt the custodian Fargo was the only bank has left, long-term strategy is said. the basis of a “serious proposal” from the the apparent contradiction. betrayal and deceit across the chamber bank. Bank of New York among the top four U.S. in flux.” At Visa, he is credited with British on how they would replace the “We will obey the law, but we’re confi- of the House of Commons. Mellon named former finance lenders to not grow loans or transforming the payment backstop. dent we can come out on Oct. 31 and the Opposition lawmakers accused head Thomas Gibbons as its deposits, according to Diversity goal giant’s technology platform “That hasn’t happened yet and until best way to do that is to get a deal,” Johnson of stoking hatred and cast him as CEO on an interim basis. Its Refinitiv data. Wells Fargo Scharf’s appointment is a win and saw the stock price more there is a serious proposal in writing ... Johnson told reporters on Friday. a cheating dictator. One called him a liar. shares closed 4.2% lower, shares have fallen short of the for Wells Fargo. Sources have than double. Scharf was then the gaps that are wide at the moment “That’s why the surrender act is so Johnson dismissed death threats against while Wells Fargo rose 3.5% on KBW Bank Index as the board said that the board’s search tasked with reinvigorating will remain. And time is running out,” he damaging,” he added. “It has had the female law-makers that echoed his own Friday. looked for a new CEO. process was fraught, with lim- growth at BNY, a custodian told reporters. effect with our European friends making language as “humbug” and described the “He’s a good choice,” said Analysts cited uncertainly its on how much the bank bank which executes back Barnier said the bloc was firmly unit- them think: ‘maybe parliament can block law brought by opponents to potentially former Wells Fargo CEO Dick about management and could have paid its new chief office operations for asset ed on insisting on a legally operative fix this thing, maybe they will be forced to delay Brexit as a “surrender” bill. Kovacevich. “He’s very expe- future financial targets as a executive and the require- managers. for the Irish border issue, saying it need- extend.’ If you’re in a negotiation that On Thursday, Johnson’s most senior rienced in almost all of these top concern. ment that regulators approved There he quickly made ed to avoid a hard border and protect the obviously makes it more difficult.” adviser Dominic Cummings told politi- financial services areas.” On Friday, Wall Street ana- of their choice. changes designed to make the integrity of the EU’s single market. Britain’s Brexit minister Stephen cians they should not be surprised by the Scharf has his work cut out lysts applauded the bank’s The board had said it company more efficient like “The onus is on the British prime min- Barclay also met Barnier on Friday and mounting anger and the atmosphere for him. pick but warned that major wanted to find an outsider, a overhauling meetings and ister and his team,” Coveney said, adding said there was a long way to go until they would get worse unless Brexit was deliv- Wells Fargo is operating regulatory hurdles remained. key parameter for satisfying making leadership changes. that Ireland was open to extending the reached a deal. ered. under a regulatory micro- “The appointment of Mr. critics in Washington. The So far those changes have not Brexit departure date. “An extension is “I think we are coming to the moment “If you are a bunch of politicians and scope, as it tries to rebuild its Scharf removes a major over- board also initially looked the paid off as BNY shares are preferable to no deal,” he said. of truth in these negotiations,” Barclay you say that we swear we are going to reputation with customers, hang,” Saul Martinez of UBS possibility of hiring a diverse trading lower than when Britain is due to present concrete legal said in a television interview, repeating respect the result of a democratic vote investors and politicians after wrote in a note to clients. candidate, especially a Scharf took the helm. texts on their Brexit plans next week after the message that the backstop had to go and after you lose you say ‘we don’t want employee whistleblowers While the news cheered woman, sources have previ- One of the sources said the Conservative Party conference. but a deal could be struck with good will to respect that vote’. What do you expect revealed in 2016 that the bank Wells Fargo investors, analysts ously said. Scharf always had aspirations This month, British lawmakers forced on both sides. will happen?” said Cummings, the mas- had opened potentially mil- said it was a negative for Bank But several candidates to be the chief executive of a through a law which compels Johnson to termind behind the 2016 campaign to lions of unauthorised of New York Mellon. that the board approached big bank. If his tenure at the seek an extension to Brexit unless he has Anger leave the EU. accounts. KBW analyst Brian were not interested in the job. San Fransico-based bank agreed a new deal with the EU by Oct. 19 With agreement still some way off, Britain’s leading bishops intervened Since then, internal and Kleinhanzl said he was unsure At one point, the board con- goes well, Scharf will have a or got parliament’s approval to leave with- Britain’s exit from the European Union on Friday to say all sides should moderate regulatory probes have dis- what to expect from Scharf as sidered keeping its interim claim to the same fame as his out an agreement, an outcome a majority still remains clouded in uncertainty three their language. covered other issues in the Wells’ CEO since his tenure at CEO, Allen Parker, on a per- one-time boss Dimon, the of lawmakers and many businesses years after the vote to leave, and the coun- REUTERS bank’s businesses, resulting in Bank of New York Mellon last- manent basis. source said. REUTERS

Fiat Chrysler to pay $40 million DONKEY BUSINESS over inflated sales figures

DAVID SHEPARDSON added it has “reviewed and said, adding the database In April, Fiat Chrysler set- 28 September refined its policies and pro- “contained false vehicle sales tled lawsuits with seven of its cedures and is committed to entries, including false cus- dealers over claims it urged Fiat Chrysler Automobiles maintaining strong controls tomer names and dates of them to input phony sales to NV and its U.S. unit will pay regarding its sales reporting.” sales.” help it meet sales targets for $40 million for misleading The SEC settlement is not The suit said the company an undisclosed sum, while in investors about its monthly material to its financial used a database of fleet and May it settled a lawsuit with sales figures and will resolve results, it added. certain other retail sales, at stockholders for $14.75 mil- a lengthy probe by the U.S. The SEC said Fiat the direction of its head of lion. Securities and Exchange Chrysler put U.S. sales, “to The Justice Department Commission (SEC). pressure on its Over a five-year misreport declined to comment on the Over a five-year period business centres period from 2012 vehicle sales status of its investigation. from 2012 through 2016, Fiat “to increase through 2016, Fiat results and In May, Fiat Chrysler Chrysler’s U.S. unit used a sales, maintain Chrysler’s US unit year-over-year Automobiles’ U.S. sales chief series of fraudulent moves to the year-over- used a series of growth per- Reid Bigland sued the com- falsely report new vehicle year sales fraudulent moves to centages every pany claiming it withheld sales and falsely tout a streak, and hit falsely report new month.” 90% of his 2018 compensa- “streak” of uninterrupted internal sales vehicle sales and Employees tion because he cooperated monthly year-over-year sales targets, particu- falsely tout a ‘streak’ referred to the with the SEC probe. An Oct. 3 growth, when it had larly on the last of uninterrupted vehicle sales hearing is set in the suit. actually ended in September sales day of the monthly year-over- saved for pub- Bigland said in his lawsuit 2013. month” and as a year sales growth, lic reporting, that the company’s sales In July 2016, the company result some when it had actually the SEC said, reporting methodology had revised more than five years employees at ended in Sept 2013 with terms like been in place since the late of monthly U.S. vehicle sales most of the “cookie jar,” 1980s and was widely known figures to reflect a new Business Centres “engaged the “bank,” the “bag,” and throughout the company reporting method, amid an in fake sales reporting.” the “kitty.” including by Sergio investigation by federal Dealers were paid to Detroit’s Big Three Marchionne, who was chief authorities including the U.S. report fake sales in a compa- automakers have ended the executive until his death in Justice Department. ny database using “coopera- practice of reporting month- July 2018, and other senior An Afghan man loads ballot boxes and other election material on a donkey to be transported to polling stations not Fiat Chrysler said Friday tive marketing funds” to dis- ly sales figures and now executives. accessible by road in Shutul, Panjshir province, Afghanistan. The country voted for a new president on Saturday REUTERS it “cooperated fully” and guise the payments, the SEC report on a quarterly basis. REUTERS McLaren to return to Mercedes Sony makes peace with Disney over Spider-Man engines from 2021 CHRISTOPHER PALMERI would have kept Sony’s storyline that had been built & ANOUSHA SAKOUI character from appearing in up for years. McLaren will be reunited with Mercedes be reckoned with once again. 28 September separate Disney movies, Financial Dispute engines from the 2021 season as the former The combination won 78 races, a construc- banishing the character from Last month, Sony blamed champions go back to using the German man- tors’ title and three drivers’ titles with Mika The two companies have the so-called Marvel the impasse in part on Feige ufacturer’s power units in their bid to return to Hakkinen (1998, 1999) and Lewis Hamilton agreed to co-produce the next Cinematic Universe. being so busy producing other the top. who raced to his first Formula One title with the “Spider-Man" movie, ending a Even though Spider-Man Disney movies. But Feige The Woking-based team are currently sup- team in 2008. dispute that clouded the is a Marvel superhero, Sony seems no less busy today; in plied by Renault, having joined forces with the McLaren find themselves in a similar phase future of one of the industry’s acquired the rights to the fact, he’s currently in French company last year. now, rebuilding after three dismal years with biggest franchises. The character long before Disney discussions to work on a new They will see out that deal, which runs until Honda, the Japanese manufacturer they compromise gives Disney a bought Marvel Entertainment “Star Wars" film. People the end of 2020, before making the switch back rejoined forces with at the end of 2014 in a bid 25% share of the profit from for $4 billion in 2009. familiar with the situation to Mercedes as part of a long-term agreement to recreate their dominance from 30 years ago. the film, according to a person Sony used to produce had said the financial issue until at least 2024. Fielding a fresh driver line up of British with knowledge of the Spider-Man films on its own, was the bigger conflict. With “We are delighted to welcome McLaren rookie Lando Norris and Spaniard Carlos Sainz, situation. The studio had but after a few less-than- the agreement to get 25% of back to the Mercedes-Benz racing family with they have made big strides this year and are been requesting as much as stellar installments, it teamed the profit, Disney is on the this new power unit supply agreement,” said currently locked in a battle for fourth in the 50% previously, said the up with Disney for “Spider- hook for a quarter of the next Mercedes’ motorsports head Toto Wolff in a overall standings with Renault’s works team. person, who asked not to be Man: Homecoming" in 2017 film’s costs, one of the people joint statement with McLaren issued at the But they haven’t won a race since the sea- identified because the terms and 2019’s “Far From Home" -- said. Russian Grand Prix on Saturday. son-ending 2012 Brazilian Grand Prix, when are private. As part of the pact, Spider-Man also will be featured in a future Sony’s highest-grossing With the matter resolved, “We hope that this new long-term agree- they were still powered by Mercedes. As part of the pact, Spider- Marvel Studios movie, the companies said Friday movie of all time. Spider-Man, Holland will now reprise the ment marks another milestone for McLaren “Renault has been instrumental to our Man also will be featured in a played by Tom Holland, also title role of Spider-Man in the as they aim to take the fight to the sport’s top Formula One recovery plan and a fantastic future Marvel Studios movie, appeared in the Marvel new picture. He also was teams, including our Mercedes works team.” partner to McLaren Racing,” said Zak Brown, the companies said Friday. July 16, 2021. month. A falling-out would Cinematic Universe movies as featured in the MCU films, The McLaren-Mercedes partnership ini- chief executive of McLaren Racing. Amy Pascal, former chairman The two sides had have kept Marvel President the protege of Iron Man. including this year’s tially ran from 1995 to the end of 2014. “This agreement is an important step in our of Sony Corp.’s film studio, previously been unable to Kevin Feige -- known for Spider-Man fans on social “Avengers: Endgame," the It turned McLaren, enduring a slump after long-term plan to return to success in will produce the next “Spider- agree on new terms for their ensuring Marvel’s quality media have pleaded with the highest-grossing film of all their heady days of dominance during the late Formula One.” Man" stand-alone film, which partnership, and the dispute control -- from working on companies to repair the rift, time. 1980s and early 90s with Honda, into a force to REUTERS is scheduled for release on splashed into public view last new Spider-Man films. It also arguing that it would ruin the BLOOMBERG 10 DEMOCRACY AT WORK MUMBAI | 29 SEPTEMBER 2019 >

The mystery behind TDP leader’s suicide DID THEY REALLY SAY THAT? CHECKLIST Here is the full story behind the suicide of the 72 year old trained doctor and leader of PUNJAB ASSEMBLY BY ELECTIONS: OCTOBER 21 the Telugu Desam Party (TDP) in Andhra Pradesh, Kodela Sivaprasad Rao. Rao com- mitted suicide earlier this month. After Jaganmohan Reddy came to power, his gov- n Jalalabad: Former State youth Congress chief n Dakha: The Dakha seat fell vacant after former ernment set up a cell in the police department to dig out all past corruption cases Raminder Awla is the candidate from the Aam Aadmi Party MLA H.S. Phoolka resigned in allegedly committed by Kodela and his family members. The AP Legislative Assembly Jalalabad constituency. The seat fell vacant after January, against the Congres government’s secretariat found that some furniture purchased for its new building in Amaravati MLA Sukhbir Badal of the Akali Dal was elected to alleged failure to take action against those who CHATTERBOX had gone missing and later traced it to Kodela. The Assembly secretariat booked cases the Lok Sabha. Ravneet Singh Bittu from the were involv ed in the desecration of Sikh religious against him under IPC 409 and 411. Though Kodela offered to return the furniture or Congress had come third in the constituency scriptures in 2015.The Shiromani Akali Dal (SAD) pay its cost to the Assembly, the officials opted to pursue the case against him. where the number 2 was Bhagwant Mann of Aam announced that Manpreet Singh Ayali, a former According to TDP leaders, this led to depression in him and Kodela killed himself. Aadmi Party (AAP). Mann is now MP from Sangrur MLA, would be its candidate for the seat. Sandeep and the AAP candidate is Mohinder Singh. Singh Sandhu, political secretary to Punjab Chief All praise for Modi Winning the seat is a crucial battle of prestige for Minister Amarinder Singh, is the Congress The latest Congress leader to endorse the policies of the Narendra Modi government the Badal family. candidate, making this a high-visibility election. is Chhattisgarh Chief Minister Bhupesh Baghel. Baghel justified Pakistan PM Imran Pakistan needs to understand that the Indian Navy n Phagwara: Som Parkash of the BJP was elected to Amandeep Singh Mohi is the candidate from AAP Khan quoting the Congress party’s stand on the Kashmir issue, he justified it by has become much stronger with the the Lok Sabha and resigned his assembly seat, n Mukerian: the seat fell vacant following the commissioning of the INS Khanderi. They should saying: “Inside the country, we'll strongly oppose Narendra Modi ji. But for matters know our capabilities and we can use them if causing the vacancy. Former IAS officer Balwinder death of Congress MLA Rajnish Kumar Babbi. Indu outside the country, whatever decision the government takes, the Congress will required. India is proud of its Navy and can never Singh Dhaliwal will contest from Phagwara (SC) as Bala, his wife, will now be the Congress always support it and stand with the country”. This went out on Twitter and has forget the exceptional role it played in the 1971 the Congress candidate, while AAP has fielded candidate. The town falls in the erstwhile given great solace to Congress members like Milind Deora who acknowledged with war...” Santosh Kumar. BJP is yet to name its candidate. insurgency-hit district of Hoshiarpur. In this grateful thanks, PM’s endorsement of Murli Deora’s contribution to India-US elec- Defence Minister Rajnath Singh after Pakistan PM Imran Development and the menace of drugs are the segment, during the Lok Sabha election, the tions. No one knows whether the Congress is coming or going. Khan's speech at the UN General Assembly, September 28 two most important issues in the constituency. Congress had trailed by 38,000 votes.

that it’s a challenge. But it is an important We feel really comfortable in terms of not OPINION conversation that should happen for getting just the scale and growth of our family of the right answer between tech firms like us, apps in India, but how our communities are NARENDRA MODI governments and citizens. We have found engaging with them. Between Facebook, openness, we are engaging, we have Instagram, and WhatsApp, people use our expressed our points of view. platforms quite differently. While we are cognizant that privacy is an Facebook is used more for friends and I will personally important agenda, we are equally aware that families to connect with each other, concerns around national security should be Instagram (is used by) brands and celebrities addressed too. and interest groups. And then of course, act as a bridge if Whatsapp is the private forum. Over time, While the government says it supports we’re introducing new propositions like the privacy, there is still talk about introduction of music on Instagram and sto- traceability of messages, including a ries, both on Facebook and Instagram. there are any gaps case in Indian Courts. And that also leads into the larger issue of fake news Data has become a mainstream ust a few days back, we have decided to drastically reduce and monitoring online content. How do conversation in the Indian context, in the corporate tax. This is a very revolutionary step from you look at that internally? the last year or so. The Prime Minister J the level of investment and after this decision, all the On the first one (traceability), also had recently said data people from the business world whom I met or had a discussion because it’s going through the is the new gold. How with, are considering it very historical. During this time, several judiciary, it is sub important is this decisions have been announced one after another by the gov- judice so I won’ t be able to talk conversation in the Indian ernment to increase investment. We have also abolished more about it. context from what you see than 50 such old laws which were hindering the development The third party fact check- in other parts of the world? work. Let me remind you again, it has not been more than ing programme on Facebook, A lot of this massive growth in three-four months of our new government. Today, I want to came out of limiting the spread AJIT MOHAN the internet economy hap- say from this platform, that this is just the beginning. of misinformation. Today, in Vice-President and pened on the back of a massive Today, India is in a unique position where our rapid growth India, we run one of the largest Managing Director, disruption from Reliance Jio, enables us to cater to diverse demand. Our people are rapidly ILLUSTRATION BY BINAY SINHA third party fact checking pro- Facebook India fundamentally changing the defeating poverty, moving up the economic ladder and diver- grammes anywhere in the game in terms of access to sifying their consumption. Thus, if you want to invest in a world, with nine partners in 12 affordable 4G. market where there is scale, come to India. Our middles class languages. Whenever there is I know there were head- is a huge segment of people who are aspirational and has a content that violates the community guide- lines from Nick’s (Nick Clegg, Facebook VP global outlook. Thus, if you want to invest in a market where Whether oil, gold or water, data is here to stay, and Facebook is going to work with telecom lines of Facebook, we pull it down. We take for Public Affairs was in India two weeks ago, the latest trends and features are appreciated, come to India. players, including Reliance Jio to reach more and more people in India. Vice-President and off content from the platform, millions of and said data is not the new oil but more like Our youth are one of the largest users of the app economy. Managing Director Facebook India, Ajit Mohan spoke to Neha Alawadhi about the social media pieces of content, even before they get any water) conversation two weeks ago, but I From food to transport and from movies to hyperlocal deliv- giant’s priorities in India, issues with the government and the way forward. Edited excerpts: distribution, even before they’re seen by any- think it’s key to recognise that we have ben- ery, start-ups are acing everything. Thus if you want to invest one, because there’s been so much progress efited from it (Jio 4G). We see Reliance as a in start-ups with a huge market, come to India. Our infra- and automation and artificial intelligence. partner, and hopefully Reliance and the oth- structure creation is expanding at an unprecedented pace. One of the big changes on WhatsApp er telcos see the value that Facebook, From highways to metros, from railways to ports, from air- came from the feedback from stakeholders Instagram and WhatsApp have bought in ports to logistics, each sector is seeing massive investment in India, about limiting the virality of misin- terms of people using data. It’s important to and tremendous potential. Thus, if you want to invest in one ‘We should keep the formation. When WhatsApp introduced lim- call it out, because I don’t think it should be of the largest infrastructure ecosystem, come to India. We are iting forwards to only five that limited the lost in the noise of the headlines around the rapidly modernizing our cities, and equipping them with lat- possiblity of virality of a content. However, metaphor. est technology and citizen friendly infrastructure. Thus if you we were happy to make the trade-off. China has created a model where it’s want to invest in urbanization, come to India. We have opened doors open for data’ walled off. The reality is, the polarity of the our defense sector like never before. If you want to make in You also set up an election integrity global internet now comes from the US, India, for India and for the world, come to India. team in India before the general Europe, and India. I think we recognise that Today, our government is investing on the development elections. What does the team do now India has a very special role in thinking of infrastructure in India like never before. In the coming How has the journey from Hotstar to is having with the government now, that elections are over? about some of these issues, and a lot of the years we are now going to spend Rs 100 lakh crore (about $ Facebook been? What are Facebook's given what the Prime Minister has said That’s a global team. After 2016 US election, answers that India comes up with, will influ- 1.3 trillion) on modern infrastructure. Apart from this, lakhs main priorities in India? about privacy recently? How important there was a big focus (on Facebook), which ence how the internet evolves, including of crores of rupees are also being spent on India's social infra- While earlier (in Hotstar), I had the oppor- is WhatsApp as part of that continues to be there. The feedback we hear their stance on data and privacy. structure. The roadmap for qualitative and quantitative leap tunity to start and drive video of a certain conversation? is, our efforts at ensuring integrity look a lot in India's Growth Story has hit the ground. Now India has set kind, the opportunity that I see here The Prime Minister and the government more involved than it was two years ago, and How do you look at India’s demand for a big goal - to make the country a $ 5 trillion economy. (Facebook) is of scale and engagement to go have been vocal about the power of social is still improving. The reality is, around the data localisation? When we came into government in 2014, the country's a lot deeper in India, and be relevant across media to reach a large number of people. I world, there are elections happening at some We genuinely believe that the right answer economy was at around $ 2 trillion. In the last five years, we multiple things. think governments and citizens are both point. So it’s a team that is working globally, for India would be to keep the doors open added about one trillion dollars to it. And now we are working The scale, relevance and engagement with conscious that many of the issues (around across elections, and the idea is also to keep on data flows. India has benefited from those hard to achieve the goal of $ 5 trillion. our family of apps across Facebook, Instagram tech companies) involve extraordinarily dif- learning from each election, and funnel it who have been open — the first wave of To achieve this huge target, we also have the capability and WhatsApp in India are vast. Facebook has ficult trade-offs between competing values, into the next big set of product changes. information and technology companies. I and the courage and conditions are also in our favour. Today more than 325 million users a month, for example, something that India values, That’s what the integrity team does. believe that there is commonality in the val- there are four important factors of India's growth story which WhatsApp more than 400 million users a which is freedom of expression and open- ues that drive India. The openness, the spirit are difficult to find in the world together. These 4 factors are month and Instagram is growing massively. It ness, and national security. So they’re looking at state elections as of entrepreneurship, some of the same Democracy, Demography, Demand and Decisiveness. If I talk is clear that the scale of opportunity to create In case of WhatsApp, the government has well? themes that Prime Minister Narendra Modi about the first factor, then this kind of opportunity and polit- an impact in India is massive. publicly articulated that they support All the principles that we used in the general has spoken about in the US this week. In a ical stability in India has come after many decades. When The Facebook family of apps is so rooted encryption, that Indians need to have the elections hold true for the state elections as country that has deep engineering talent, there is Democracy, Political Stability, Predictable Policy, and in communities, whether in public or private ability to have private communication. We well. and is now at the cusp of creating fundamen- Independent Judiciary then confidence of Safety, Security context, that it comes across as made for have been very engaged in all conversations tally new models that can be exported to the and Growth of investment is automatically found there. India. It would have originated out of India about privacy and data, including represen- How do you look at the fact that most world, I think it’s the right answer for India. This growth is bolstered by India's Demographic Dividend in another world. tations to the Sri Krishna committee and people, whether politicians, businesses I’m not saying this from a self interested lens and the Young and Energetic Talent Pool of India. Today MeitY (Ministry of Electronics and or celebrities take to Twitter as the first of Facebook, rather with a lot of humility and India is one of the countries with the largest Engineering Where are the conversations Facebook Information Technology), and we have found platform of choice for mass messaging? respect that India will find its own answers. Education base and the strongest R&D facilities in the world. Due to the encouragement that the youth of India are getting regarding innovation, India is ranked number 3 in terms of Unicorns after America and China. The third is the factor of Demand. As India's large popula- tion is becoming economically empowered, Purchasing power is increasing, so is the demand too. For example, the growth Enhancing safety of women of air passenger traffic has been in double digit for the past few years. Because of that today India has become the third largest aviation market in the world. A gender sensitisation training is being provided Along with Democracy, Demography and Demand, what makes India special today is Decisiveness. Despite being a to the bus conductors and drivers of Haryana diverse and federal democracy, in the last 5 years the emphasis Roadways in a bid to make public transport safer, has been laid on preparing seamless, inclusive and transpar- ent arrangements for the whole of India. writes Meghna Chadha Where previously there was a web of taxes in India, now a single Indirect Tax Regime in the form of GST has become casual Google search on the “number tisation training, was launched by the govern- part of the business culture of the entire country. of sexual assault cases” in Delhi-NCR ment of Haryana. This is the first time that the We have also worked hard to strengthen the IPR and trade A throws up results that shock as well as government has let their staff from the Haryana mark regime. Similarly, the Insolvency and Bankruptcy Code enrage. Last week, the Delhi government Roadways be a part of such training,” says Itika was created to deal with the insolvency and bankruptcy. We announced it had installed over 200,000 street- Gupta, programme manager, CMGGA. It was will continue to make necessary reforms to bring laws related lights across the dark corners of the city to make during one assessment under the CMGGA pro- to tax and tax on equity investments on a par with the global it safe for women to travel. Meanwhile, a private gramme that the associate zeroed down on dark tax regime. Apart from tax reform, the world's largest financial radio broadcaster ran a month-long initiative streets in certain areas of Haryana. “The first inclusion has happened in India in a very short time. About where the radio hosts discussed, argued and logical step was to install street lights and ensure 370 million people have been linked to banking system for sought suggestions from Delhiites as all the areas were well lit,” she said. Till date, 6,000 drivers and conductors have been trained across 15 districts of Haryana. The the first time in the last 4-5 years. Today, almost every citizen well as those in power on how to make Then came the task of safer pub- remaining seven districts will be covered by November-end of India has a unique ID, mobile phone and a bank account. Delhi safe for women. lic transport system. “This was Due to which targeted service delivery increased, leakages All these initiatives will remain on going to be possible by creating lenges especially to ensure that drivers and con- how to believe victims and take the necessary have stopped and transparency has increased manifold. paper until women feel “safe” to ven- socially responsible drivers and ductors are able to take time out to undergo the steps to ensure that these spaces are safe for all In this New India, we have started the campaign for de-reg- ture out of their homes. A recent conductors. So, we trained partici- training without disrupting the day-to-day oper- women and girls. Hopefully, it will also set a tone ulation, de-licensing and de-bottlenecking. Due to such reforms, assessment undertaken by the Chief pants on understanding gender ations of bus services. Depot managers have been of zero tolerance towards sexual harassment in India has been consistently doing better in every Global Minister’s Good Governance issues and sexual harassment laws, instrumental in managing the schedule so that public transportation and encourage women to Ranking. A jump of 10 points in the Logistics Performance Associates (CMGGA) Programme in as well as enhanced communica- as many drivers and conductors as possible can report such incidents because appropriate Index, a jump of 13 points in the Global Competitiveness Index, Jhajjhar and Rohtak districts of THE OTHER tion skills and how to manage situ- be trained. There have also been challenges for action is being taken to address it,” says Dr Shruti a 24-point improvement in the Global Innovation Index and, Haryana found that women, especial- INDIA ations which occur on the bus,” said the trainers when discussing the personal con- Kapoor, founder, Sayfty — an organisation that most importantly, a 65-rank improvement in the World Bank's ly young girls, do not feel safe while Gupta. The programme that was tent during these sessions. Most drivers and con- educates and empowers women and girls Ease of Doing Business Index, are phenomenal. travelling in public transport. Project launched in June this year aims to ductors have taken the sessions very well and against gender-based violence. According to Your desires and our dreams match perfectly; your tech- Jaagriti, initiated in 2016 under the cover all the bus depots in the state. engaged positively, but trainers do face difficul- Kapoor, the training must also focus on how to nology and our talent can change the world; your scale and CMGGA programme, had till now been working “Till date, 6,000 drivers and conductors have ties in engaging all the participants,” Gupta says. raise awareness amongst bystanders on what to our skills can speed up global economic growth; Your rational in collaboration with the Haryana government been trained across 15 districts of Haryana. The “Such gender-sensitisation training is imper- do in case someone is harassed in public spaces. ways and our human values can show the path which the and Ashoka University to provide transparency, remaining seven districts will be covered by ative to address safety of women in public While the funding for “Safe Gaadi” is being world is looking for. And if there is any gap anywhere - I will accountability and efficient service-delivery in November-end,” she adds. The training provided spaces. It will encourage officials to pay attention provided by Indian Oil, the programme coor- personally act as a bridge. the state. However, their latest offering is to by Manas Foundation includes two trainers who to issues women and girls face on a daily basis dinators are hopeful the positive response will develop a gender-sensitisation programme, run the sessions thrice a day, over two hours. when using public transportation and how to help them expand it to the auto drivers in the Edited excerpt from an English rendering of an address in Hindi by especially for the bus drivers and conductors While the programme aims to sensitise over address these issues. It will raise awareness state as well. “We want to ensure that when a Prime Minister Narendra Modi at the Bloomberg Global Business of Haryana Roadways. 10,000 drivers by November end, it hasn’t been amongst bus drivers on how to address a sexual woman or a girl is in distress, immediate assis- Forum in New York, September 25 “Safe Gaadi, a programme of gender-sensi- an easy ride. “There have been logistical chal- harassment incident when it occurs on a bus, tance is provided to them,” concludes Gupta. OPINION 11 > Volume XIII Number 28 MUMBAI | 29 SEPTEMBER 2019

itself may be erased. However, it could also be and they are visible to a EU surfer who uses a geoblocks with regard to the right to forget in the public interest, or it may be necessary to VPN to circumvent geographic restriction. are selectively applied in many regions. The The Right to Forget hold that data in the interests of freedom of The search engine giant appealed an order by embarrassing information will remain searc- expression. For example, criminal records of the French regulator, CNIL, which demanded hable from servers and IP addresses in oth- Delicate balance between privacy and free expression adults may not be erased. Nor can news about that links be removed globally. CNIL also er jurisdictions. This will lead to a delicate communicable diseases, etc. be wiped out. imposed a fine of ^100,000. The ECJ has balance between privacy and free expres- oogle has just won a judgment with effect in 2014 after a Spanish citizen appealed Ironically, the landmark case that sparked the ruled this as overreach saying: “There is no sion. India could be a global test case. It has important implications at the to have links pertaining to an old bankruptcy regulation remains easily searchable precise- obligation under EU law for a search engine a vast, growing population of Netizens. The European Court of Justice (ECJ). to be erased. The provisions became more ly because it led to the regulation. operator who grants a request for de-refer- Supreme Court affirmed privacy as a fun- The court ruled that the European stringent after the General Data Protection In practice, search engines delete links encing made by a data subject ... to carry out damental right but the government has not G while the content itself may remain available. such a de-referencing on all the versions of its come up with specific privacy legislation in Union’s (EU’s) Right to Forget regulation could Regulation (GDPR) came into force last year. only apply within the jurisdiction of the EU. Affected citizens can make a request “ver- Google claims that it has complied with such search engine.” the two years since that judgment. The draft Hence, Google and others can geo-selectively bally or in writing” to have links or personal requests roughly 45 per cent of the time — of The UK will become a grey zone if Brexit privacy legislation by the Srikrishna remove links to information within the ambit data deleted. The recipient of the request (not the 845,000 requests that it has received ask- occurs if it doesn't legislate its own version Committee doesn't include a Right to Forget. of that regulation. The Right to Forget, or Right necessarily a search engine) has one month to ing for the removal of more than 3.3 million of GDPR. Many other non-EU nations are At the same time, vast numbers of sites are to Erasure, lets individuals in the EU request respond. The recipient must consider many links. It does this by geo-blocking. The links legislating their versions of GDPR. Such leg- geoblocked in India, on the request of gov- that search engines remove links to some cat- things before it complies with the request or are no longer visible if a search is made on islation will be uneven since it is driven by ernment agencies and under court orders egories of embarrassing information, or per- turns it down. For example, the data may be global server Google.com from within the EU. regimes and constitutions, which vary in granted to companies and individuals. How sonal data, on the Internet. The information personal, or collected with consent, for a pur- All links are removed from European servers the priority allotted to privacy and free India chooses to prioritise privacy and free may remain available, but it can no longer be pose that has been fulfilled. It may be obsolete like Google.fr, Google.co.uk, and Google.de. speech. Assuming this ECJ judgment is expression will affect the internet experi- found via a simple search. The law came into or pertain to a minor. In such cases, the data But the links are visible from other regions foundational, there may be a situation where ence of hundreds of millions. Turning disruption into growth Why gender budgeting Concerted actions across all stakeholders could create a unified push for a thriving automotive industry is necessary in India

SHIVANSHU GUPTA, AUROBIND SATHPATHY, SURUCHI AGARWAL Thus, substantial investment in water BARATHRAM A & GANDHARV VIG infrastructure for drinking and farm- iving development policies a ing purposes should be of the highest iscontinuities are disruptions on the evolution gender content would have a priority in the region, as it has adverse- curve that alter the way an industry operates. G greater impact in some of ly affected all dimensions of develop- D The automotive component industry in India India’s most backward districts. ment, such as living standards, agricul- has been in a growth phase in the past decade with Consider Mewat district, situated 60 ture, gender equality and so on. domestic turnover more than doubling and export kilometres from high-tech Gurugram, The Haryana government on its part turnover growing five-fold between 2010 and 2019, Haryana’s most backward district, has made many efforts to improve liv- according to the Automotive Component where a saline water zone coupled with ing conditions in Mewat by opening Manufacturers Association of India (Acma). lack of water supply forces women to hospitals, anganwadis, schools and col- In recent months, we have seen discontinuities in travel for up to two to three hours daily leges and developing infrastructure, but this sector. Auto sales have declined driven by factors to fetch drinking water. has still not been able to bring about like the liquidity crunch in non-banking financial com- Being a Muslim-dominated region, effective change. panies (NBFC), higher acquisition costs for vehicles the cultural ethos is conservative, Despite so much effort over so many owing to an increase in the costs of raw materials, insur- restricting the movement of women out- years, the condition of women has not ance and finance; and weaker consumer sentiment. side their homes. The average family size improved much and Mewat continues Growth in the automotive component industry declined in the district is eight. Interestingly, to be at the bottom among all of from 18 per cent in the 2018 financial year to 14.5 per Mewat is at the top in terms of the pro- Haryana’s districts in terms of develop- cent in the 2019 financial year. portion of the child population (22.78 per ment. A change in the thinking of socie- While policy measures could bring back growth, cent), which is an indicator of a level of ty as a whole is needed. the industry can adopt some practical measures higher dependency on the earning mem- The statistics reveal that women are to stimulate near-term impact and long-term pre- bers of each household. This in turn cre- more disadvantaged than men. If data paredness: ates pressure on the limited resources for males and females are disaggregat- „ Maximise product modularity using a spend pareto available to an individual as a member of ed, it is clear that women are much across product, sub-system and parts to improve a particular household. worse off than men in terms of educa- economies of scale and reduce the working capital The men in Mewat are mostly truck tion, health, income and so on. They requirement. A pareto is a statistical technique in deci- drivers, who are away for number of perform a lot of unpaid work like caring sion-making used for the selection of a limited number days, and hence most of the household for children, cooking, cleaning, fetch- of tasks that produce significant overall effect; pressure falls on the women. The moth- ing water, and caring for the elderly. „ Embrace a zero-defect culture at operator level to er involves the elder daughter in sup- This has to be valued and methods of drive individual and area-level performance manage- porting the family. The elder daughter supporting women who contribute to ment; therefore does not get time the nation through unpaid „ Rationalise the portfolio by focusing on products that to go to school, which Gender budgeting work need to be identified. bring the majority of revenues and profits and expand Car bodies on an assembly line. Manufacturers will now need to build capabilities through partnerships reduces the literacy rate of is the formulation A more realistic way after-market activities and export markets; women. Education is not of policies and would be to identify areas „ Re-imagine end-to-end sales and operations process- electronics and software components dominating Manage organisational and cultural change: Manu- considered an important plans, allocation of public spending that es by using digital technologies and analytics, such as the mix. facturers would need a transformation office to identi- resource and thus does not of resources, would yield more advan- forecasting tools, to optimise capital and cost and Consolidation of auto original equipment manu- fy the roles that create the most value for an organisa- feature on the priority list impact assessment tages to women and girls. increase customer satisfaction; facturers: Global auto OEMs are consolidating to take tion and assign them projects that will drive growth in of inhabitants. and corrective We would then have to work „ Manage fixed costs by establishing a war room to advantage of their mutual strengths and improve their the future. Large family size com- follow-up action towards improvising poli- reduce indirect costs services, stores and spares. capabilities. Component makers could use this oppor- bined with low income aimed at cies to provide more funds tunity to hasten modularisation and vendor consoli- HOW STAKEHOLDERS CAN SUPPORT AUTO leads to low nutrition levels addressing gender in the identified areas, INDUSTRY DISCONTINUITIES AND dation. COMPONENT MANUFACTURERS for the women, resulting in disparities which will provide an THEIR IMPLICATIONS Digital and analytics-driven transformation of core Managing the slowdown and embracing discontinu- poor health. Poor medical advantage to women and Component makers are bound to be affected by the business: Digital and analytics will transform auto- ities in India’s automotive component industry facilities and the absence of nurses and girls. In the case of Haryana, budget allo- fundamental changes in the automobile industry. They motive organisations across the value chain. requires crucial stakeholders, such as the govern- doctors play havoc with their health. cations for Sustainable Development would do well to prepare for big changes already visible Manufacturers will need to use digital technologies ment, industry bodies and OEMs, to co-create and Sewage flows in open drains on both Goals (SDG) will have to be viewed on the horizon in the following ways: heavily for internal transformations. collaborate. sides of the road. Swarms of mosquitoes through a gender lens. Expedited enforcement of emission and safety stan- The government could continue to encourage elec- lead to many diseases like malaria. Gender budgeting is the gender-sen- dards: Introduction of BSVI (Bharat Stage VI) emis- IMPERATIVES FOR AUTO COMPONENT tric vehicle manufacturing and adoption, appoint trade The major source of cooking fuel is sitive formulation of policies and plans, sion standards (equivalent to Euro VI) will bring India MANUFACTURERS representatives at consulates to facilitate exports and firewood (48 per cent). Firewood gather- allocation of resources, impact assess- in line with global markets. This will open up global Given these changes and possibilities, auto component incentivise companies to establish operations in India. ing not only consumes a considerable ment of policies and corrective follow- export markets as component makers improve their manufacturers would need to examine their business in Industry bodies could work with export promotion amount time for women and children, up action to address gender disparities. capabilities and build products targeted to the wider the following ways: councils to identify target markets for exports, facilitate limiting other productive activities, but Providing non-government organisa- world. Rethink product strategy: Manufacturers will need a cooperative supply chain in high-potential export its usage also results in emission of car- tions in Mewat with funds for women to Renewed focus on electric vehicles: The government to de-risk their portfolio by diversifying across chan- markets, set up incubation centres in metropolitan bon and methane, which are powerful start small mustard plants (Mewat is has earmarked nearly ~10,000 crore (approximately nels, for example, including after-market sales. They zones to promote innovation related to automation, climate change pollutants. The high lev- blessed with acres of mustard fields) $1.4 billion) for electric vehicles and related subsidies, would need to redefine customer segments, such as connectivity, electric power and the shared-mobility el of dependence on kerosene for lighting would increase women’s incomes. while the private sector has increased its investment to shared taxi aggregators, and rethink their geography, economy (ACES); and conduct training on the impact and firewood for cooking carries serious SDG-1 featured a budget allocation about ~400 crore ($56.4 million) in 2019 (up from about for example, by sharpening export markets. These of digital interventions. health and environmental hazards in the to eradicate poverty. This can be given ~300 crore or $42.3 million in 2018). Electric vehicle cannot be one-time efforts and will require annual Anchor actions for OEMs include investing in and case of Mewat. a gender twist and women of each adoption could have many subsequent implications: reviews of strategy. collaborating with Tier-I and Tier-II component manu- Women work extensively on farms household can be provided with food- Power train components could change drastically with Partnerships to build capabilities: Faster market facturers to help them build a workforce of the right si- but are not identified as farmers, and grains to reduce poverty. Many more some becoming rising stars in the age of electrification access and time-to-market are critical. Manufacturers ze and with the relevant skills and knowledge partner- land inheritance and ownership is patri- such practical innovations can reduce and others under high pressure; the material composi- can co-invest in R&D and product development, build- ships to embed digital capabilities in their organisations. archal in nature. The women work for the gap between male and female tion of vehicles could change fundamentally, and sup- ing capabilities through partnerships. Concerted actions across all stakeholders could up to 20 hours a day, but continue to development indicators and improve pliers could transform where and how they play in the Embrace digital: Manufacturers will need a roadmap create a unified push for a robust and thriving auto- have low incomes. the district as a whole. Changes in poli- auto sector value chain. for this transformation with clearly defined milestones motive industry in India. There is a need to scale up efforts to cies, even without actually increasing Rise of shared mobility: Changing consumer prefer- and a taskforce to drive change. improve women’s empowerment in the the district’s budget, can have far- ences could prompt the growth of new customer seg- Non-conventional sales approach: Business should Shivanshu Gupta is a senior partner, McKinsey & Company, region, as in more than two-thirds of reaching effects. ments, such as fleet owners, and create new revenue develop a hunter/farmer approach, where the hunter based in Bengaluru. Aurobind Sathpathy is a senior partner, the villages there is a huge gender gap in pools for auto component suppliers. focuses on bringing in new business and the farmer based in Chicago; Barathram A is an associate partner, based literacy, with women spending sub- The writer is with the National Institute of Growing demand for connected vehicles: This could works to grow that customer, and invest in the cus- in Chennai; and Gandharv Vig is a knowledge expert, based stantial amounts of time in fetching Financial Management, Union Ministry gradually change the composition of vehicles with the tomer of the future. in Mumbai water and collecting firewood for fuel. of Finance

> OTHER VIEWS RBI action on PMC amounts Politics of onion price rise Boost for women’s education to penalising depositors Inflation vs farmers’ incomes trade-off They can be a force for social change Regulatory framework governing With onion prices rising reason for low inflation in The All India Survey on study comes from non-gov- sharply in the past few the last few years. Food buy- Higher Education 2018-19 ernment schools, or, more cooperative banking must be revisited weeks, one of the most basic ers have gained at the cost of shows that, generally speak- specifically, are women? The contradictions in Indian food sellers. And this has put ing, women’s enrolment has percentage of women scholars On Tuesday, the Reserve Bank of India (RBI) imposed curbs political economy is mani- a severe squeeze on farm risen in higher education. The in India’s institutions of nation- on the activities of the Punjab and Maharashtra Cooperative festing itself once again. incomes. Even if left unat- increase, from 47.6 per cent in al importance is a poor 24 per Bank (PMC) for a period of six months. The decision came Urban consumers are tended, the onion price rally 2017-18 to 48.6 per cent in cent. The potential of educated after the central bank discovered certain irregularities in the unhappy to pay more for would have reversed in 2018-19, is in step with the young people must find full bank, including the under-reporting of non-performing assets onions, which have become some time. increase of approximately one expression in satisfying work (NPAs). While the restrictions imposed by the regulator, under scarce and expensive, thanks There are ways to resolve per cent in the gross enrol- and living conditions after they section 35A of the Banking Regulation Act, are aimed at safe- to late sowing and rains dis- the contradiction. If farmers ment ratio within the same get their degrees: Is India ready guarding depositors interest, and preventing a run on the rupting supply chains. are denied a windfall gain by period, while the rise in the for that? Educated women are bank, such moves, which are seen as penalising depositors, Political parties and govern- the government to keep infla- enrolment from scheduled a positive force in a nation; is can end up having the opposite effect, denting trust in coop- ments have rushed in to both tion under check, then there caste and scheduled tribe Indian society ready to let erative banks and increasing the risk of a contagion. exploit and assuage this should also be a provision to groups is slightly, and heart- them fulfil their potential with- Reportedly, the crux of the problem is the bank’s exposure anger. Exports have been ensure that there are no wind- eningly, sharper. out being beaten, tortured, to a real estate firm, which itself is currently undergoing banned, and the government fall losses at the time of a glut. Does increased enrolment raped and killed? Against all insolvency proceedings. On its part, the regulator has appoint- is planning to offload its Bumper harvests are more in higher education mean that these cautionary concerns, ed JB Bhoria, a retired senior RBI official, as administrator of case. Instances such as these are likely to raise calls for review- stocks. Such steps will bring unfair to vegetable farmers the standards of school educa- however, there must be hope the bank. A forensic audit could shed light on its asset-liabil- ing this regulatory framework and giving more powers to the down prices to some extent. because middlemen squeeze tion have improved? So far, that those being educated ity mismatch. Cooperative banks are under joint supervision RBI to oversee these entities. But the larger question over the What about farmers, though? prices paid to farmers, with- there has been no such indica- today will exert their agency of the RBI and states. And while the RBI has signed MoUs with absence of a framework for timely resolution of financial This was their opportunity out passing on the entire gains tion — reports of achievement and use their expertise for state governments, unless state governments cooperate in firms remains. to make some windfall gains. to consumers. levels in schools are quite change in the future. effecting regulations, supervision is likely to be ineffective. Do remember that tepid food alarming. What proportion of Clearly, there were no early warning signs of trouble in this The Indian Express, September 27 prices have been the biggest Hindustan Times, September 27 students in the highest levels of The Telegraph, September 27 12 MUMBAI | 29 SEPTEMBER 2019 1 > Top Hizbul 5-judge SC bench to leader, 2 other hear pleasagainst militants killed in Ramban repeal of Art 370 PRESS TRUST OF INDIA Ramban (Jammu), 28 September PRESS TRUST OF INDIA New Delhi, 28 September THE CASE HISTORY A top Hizbul Mujahideen ‘com- „ Chief Justice Ranjan Gogoi on mander’, wanted in connection The Supreme Court on Saturday set August 28 had referred the with the assassination of a senior up a five-judge Constitution bench matter to five-judge BJP leader and an RSS functionary, headed by Justice N V Ramana Constitution bench was killed along with two other ter- which will commence hearing from rorists in a nine-hour operation in October 1 on a batch of pleas mount- „ The bench will be headed by which a jawan lost his life in ing legal challenges to the Centre’s Justice N V Ramana Ramban district of Jammu and decision to abrogate provisions of „ Justice S K Kaul, Justice R Subhash Kashmir on Saturday, officials said. Article 370 that gave special status to Reddy, Justice B R Gavai, The terrorists, identified as Jammu and Kashmir. The bench and Justice Suryakant Osama and his associates Zahid also comprises Justice S K Kaul, are the other and Farooq, were gunned down Justice R Subhash Reddy, Justice B members after they tried to escape from a R Gavai, and Justice Suryakant. „ Hearing on house where they had barged in The hearing by the Constitution the issue to while being chased by security Share notes to prevent errors, bench will commence from October forces following a brief exchange commence 1, an official source said. from of fire in Batote area along Jammu- The five-judge bench will exam- October 1 Kishtwar national highway early ine the constitutional validity of the this morning, they said, adding a scrapping of the article’s provisions house-owner was also rescued after Cabinet secy tells ministries and the subsequent presidential the encounter ended. orders on it, the source added. Osama was the brain behind inet notes have not been shared with cabinet although for minor mistakes, had to be issued A bench headed by Chief Justice several sensational incidents The J&K Reorganisation Act secretariat while circulating them for inter-min- on February 28. Ranjan Gogoi on August 28 had including the killings of senior BJP had over 50 mistakes isterial consultations.” It said, “This makes it At times, minor corrections are made when referred the matter to a five-judge leader Anil Parihar and his brother difficult for this office to detect procedural defi- one House of Parliament suggests these, while Constitution bench. Several petitions Kashmir (2010-11), former IAS offi- Ajit Parihar on November 1, 2018 ARCHIS MOHAN ciencies, and inconsistencies in the proposal, the other has already passed the Bill. On have been filed challenging the cer of J&K cadre Hindal Haidar and RSS functionary Chanderkant New Delhi, 28 September as well as to monitor the time frame stipulated August 13, the Ministry of Law and Justice Centre’s decision abrogating Article Tyabji, Air Vice Marshal (retd) Kapil Sharma and his PSO on April 9, offi- for inter-ministerial consultations”. It asked min- issued a corrigendum for a couple of correc- 370 provisions and bifurcating the Kak, Major General (retd) Ashok cials said. He was carrying a reward arlier this month, the Cabinet Secretariat istries and departments to “strictly adhere” to tions in the National Medical Commission Act state into Union Territories of Kumar Mehta, former Punjab-cadre of several lakhs of rupees and was wrote to all Union ministries and depart- the instructions in the handbook. of 2019. The Lok Sabha passed the Bill on July Jammu and Kashmir, and Ladakh. IAS officer Amitabha Pande and for- also wanted in three weapon E ments to complain that they do not share On September 12, the Law and Justice 29 and the Rajya Sabha, with minor amend- The UTs will come into being on mer Kerala-cadre IAS officer Gopal snatching incidents in Kishtwar draft cabinet notes, which makes it difficult to Ministry issued a corrigendum to correct 52 ments, on August 1. The health minister on the October 31. Petitions have also been Pillai, who retired as the Union home town, which was declared terror- detect “deficiencies” and “inconsistences”. A errors in the J&K Reorganisation Act. Some of floor of the House requested members to not filed by the National Conference, the secretary in 2011. A petition has also ist-free over a decade ago. day later, the Ministry of Law and Justice issued the mistakes were misspelt words, for example push for a vote on amendments, and promised Sajjad Lone-led JK Peoples been filed by bureaucrat-turned- Despite repeated attempts to a gazette notification to correct 52 errors in the ‘notwithstanding’ spelt ‘nowwithstanding’ and to include their suggestions at the time of Conference and several other indi- politician Shah Faesal, along with his make the terrorists surrender, the Jammu and Kashmir Reorganisation Act, which ‘shariat’ as ‘shariet’. In the one that Parliament framing of rules. viduals, including the first plea filed party colleague and former terrorists tried to escape from the Parliament had passed in the first had passed, “Institutions Act, 2004” In February 2018, the law and justice ministry by advocate M L Sharma. Jawaharlal Nehru University house while firing indiscriminate- week of August. This was just one of On September 11, became “Institutes Act, 2005”, “1909” issued corrections for the National Bank for Agr- The petition on behalf of the NC Students’ Union (JNUSU) leader ly on the forces and were eliminat- several instances of poor drafting the Cabinet became “1951” and “the Prohibition of iculture and Rural Development (Amendment) was filed by Lok Sabha MPs Shehla Rashid. ed in the encounter, they said. of Cabinet notes and bills in the Secretariat wrote Benami Property Transactions Act, Act, 2017, and the Insolvency and Bankruptcy Mohammad Akbar Lone and Justice There are other petitions chal- “All the three terrorists were recent past. to all ministries 1988” became “the Benami Code (Amendment) Act, 2017. It also issued a cor- (retd) Hasnain Masoodi. Lone is a lenging the Centre’s decision on killed in the gunfight, while an On September 11, the Cabinet and departments Transaction (Prohibition) Act, 1988”. rigendum, although for a minor mistake, for the former speaker of the J&K Assembly Article 370. The apex court on August army soldier also achieved martyr- Secretariat wrote to all ministries to read up Apart from the Cabinet Secretariat, Finance Act, 2018 in April of that year. and Masoodi a retired judge of the 28 had listed the petitions connected dom,” Jammu-based Army PRO and departments to read up para- paragraph 55 of the legislative department of the Law In April 2018, the law ministry had to notify Jammu and Kashmir High Court. In with Article 370 and issues arising Lt Col Devender Anand told PTI. graph 55 of the “Handbook of the “Handbook and Justice Ministry does vetting of corrections in the Daman and Diu Municipalities 2015, he had ruled that Article 370 after its abrogation. The deceased soldier was Writing Cabinet Notes”. It states that of Writing ordinances, draft legislations and rules (Amendment) Regulation Act since “misbehav- was a permanent feature of the The NC leaders submitted that identified as Naik Rajinder Singh “a copy of the draft note should nec- Cabinet Notes” after the pre-legislative consultation iour” in the text of the Act was spelt “misbehav- Constitution. the Presidential Orders paved the from Jaisalmer. Two policemen essarily be forwarded to the Prime as well as inter-ministerial consulta- ior”. In the Andaman and Nicobar Islands Other pleas include the one filed way for application of entire provi- were injured in the gunbattle, Minister’s Office (PMO) as well as Cabinet tions are over. (Municipal) Amendment Regulation, 2018, by a group of former defence officers sions of the Constitution in Jammu officials said. Secretariat at the time when notes are sent for Other instances of corrections issued include “inquiry” was corrected to “inquire”. and bureaucrats. They have also and Kashmir and also have the effect The success for security forces inter-ministerial consultations and their com- the one on Thursday when the Law and Justice Corrections can have to be carried out years sought directions declaring the pres- of nullifying Article 35A and com- comes days after Inspector ments awaited for two weeks”. It states that com- Ministry issued a corrigendum to correct typo- after the original law is passed. In May this year, idential orders of August 5 “uncon- pletely abrogating Article 370. General of Police, Jammu, ments, if any, received from the PMO or Cabinet graphical errors in the Taxation Laws the Ministry of Law and Justice issued a corri- stitutional, void and inoperative’. While challenging the Centre’s Mukesh Singh said that four cases Secretariat “should be duly taken into account (Amendment) Ordinance, 2019, which the gendum for an amendment relating to cooper- The plea was filed by professor decisions the two MPs have sought a of killings and weapon snatching while finalising the note”. Centre issued on September 20. On February 21, atives law that Parliament passed in 2011. In the Radha Kumar, a former member of direction to declare the Act and the in Kishtwar district have been The Cabinet Secretariat letter said that there the Centre issued an ordinance on banning of text of the law, it had to issue a correction that “a the Home Ministry’s Group of Presidential Orders as “unconstitu- solved with the arrest of three “have been some instances where the draft cab- unregulated deposit schemes, and corrections, stalement” should be read as “a stalemate”. Interlocutors for Jammu and tional, void and inoperative”. Hizbul Mujahideen activists.

PAN-Aadhaar linking date Late & over-budget, new extended to submarine triggers December 31 PRESS TRUST OF INDIA Project 75-I stake rise New Delhi, 28 September PHOTO: AJAI SHUKLA AJAI SHUKLA Project 75-I, envisages selecting The deadline to link New Delhi, 28 September an Indian firm as “strategic part- permanent account num- ner” (SP). Chosen SPs will bid to ber (PAN) with Aadhaar has On Saturday, Defence Minister build the six AIP submarines in been extended till Dec- Rajnath Singh commissioned partnership with a foreign “orig- ember 31, a Central Board into service the Navy’s 15th inal equipment manufacturer” of Direct Taxes (CBDT) conventionally powered, (OEM) that offers a suitable sub- order said on Saturday. diesel-electric submarine, INS marine design and transfer of Earlier, the deadline was Khanderi. Built in Mazagon technology. September 30. Dock Ltd, Mumbai (MDL) in In response to a navy This is the seventh time technology partnership with enquiry, five Indian entities that the government has French shipyard Naval Group, have submitted Expressions of extended the deadline for this is the second of six Interest (EoI) for being the SP individuals to link their Scorpene submarines the in Project 75-I. These include PAN with Aadhaar. Navy contracted in 2005 for MDL, Larsen & Toubro (L&T), The CBDT has extended ~18,798 crore. Reliance Naval and Engin- the date for linking PAN Singh described the com- eering (RNaval), Hindustan and Aadhaar from Sep- missioning as “a proud moment Shipyard Ltd, Visakhapatnam tember 30 for the nation, the Indian Navy (HSL), and a proposed special to Dece- and MDL”. In fact, INS Khanderi purpose vehicle (SPV) consist- mber 31 This is the is being delivered more than six ing of HSL and Adani Defence. and a noti- 7th time years late, well over cost and INS Khanderi, the Navy’s Navy sources say only L&T fication that the with several defects that remain second Scorpene submarine, and MDL are realistic con- has been Centre has to be resolved. which Defence Minister tenders, since financially issued on extended When the Khanderi first Rajnath Singh commissioned stressed RNaval and HSL do not Friday in the sailed out of Mumbai for sea tri- in Mumbai on Saturday meet the financial criteria and this con- deadline als on June 1, 2017, it was expect- the HSL-Adani SPV remains to nection, for ed to join the naval fleet by end- torpedoes, bought in the 1980s be formally incorporated. the policy- individuals 2017. However, the trial team and 1990s for the Navy’s four The more difficult choice is making to link found dozens of shortcomings Shishumar-class submarines. between the five firms that body for their PAN that MDL and Naval Group ha- This meagre quantity is now have submitted EoIs for selec- the with ve grappled with for over two being shared with the Scorpene tion as the chosen OEM. Rubin Income- Aadhaar years. While the Navy’s vice ch- submarines being com- Design Bureau (Russia) has Tax (I-T) ief, Vice-Admiral G Ashok Kum- missioned. By 2022-23, when offered its Amur submarine, Depar- ar, insists the Khanderi is now a six Scorpenes will have been Thyssenkrupp Marine Systems tment said. “fully combat capable subma- commissioned to supplement (TKMS, Germany) its Type 218 It is now mandatory to rine”, Navy sources say it is be- the four Shishumar-class boats, boat, Naval Group (formerly link the two unique IDs for ing commissioned with several there will be just six torpedoes DCNS, France) its Shortfin income tax purposes. The shortcomings still unresolved. for each submarine. Barracuda, Navantia (Spain) its Supreme Court, in Sep- According to previous Besides these, the Navy S-80 and Daewoo (South Korea) tember last year, had de- reports that there were 35 operates nine Russian-origin its KSS-3 submarine. clared the Centre’s flagship defects that still remained to be conventionally powered Kilo- Of these, only Rubin, TKMS Aadhaar scheme as constitu- resolved. Of these, 29 could not class submarines, one nuclear and Naval Group are considered tionally valid and held that have been resolved during the powered attack submarine (INS to have a chance. The Navantia the biometric ID would monsoon period, since they Chakra) and a nuclear powered, S-80 is grappling with serious remain mandatory for the fil- required testing in absolutely nuclear missile submarine, INS weight imbalance issues, while ing of I-T returns and allot- calm seas — or what is called Arihant. That is well short of the the Korean submarine is an ment of PAN. “Sea State-1”. Navy’s assessed requirement of untested design. Indian naval Section 139 AA (2) of the Nor is the Khanderi being 24 conventionally powered sub- submariners are almost unani- Income Tax Act says that commissioned with a full marines and six nuclear pow- mously convinced of the supe- every person having PAN as complement of its primary ered attack submarines. riority of the TKMS Type 218, on July 1, 2017, and eligible weapon, the torpedo. This Yet, there is delay and con- the design of which is optimised to obtain Aadhaar, must after the government can- fusion in the proposal to build for the shallow Baltic Sea, which intimate his Aadhaar num- celled the purchase of 98 tor- six more conventional sub- has similarities with the ber to tax authorities. pedoes from Italian firm, marines, with “air independent Arabian Sea, where the waters Aadhaar is issued by the WASS, because its group com- propulsion” (AIP) that would 40 kilometres off Karachi are Unique Identification pany, AgustaWestland, was allow them to remain sub- just 40 metres deep. The Type Authority of India (UIDAI) accused of bribing Indian offi- merged for up to two weeks, 218 is also reputedly the most to a resident of India and cials to win a contract for VVIP compared to just 36-48 hours silent design. However, it is PAN is a 10-digit alphanu- helicopters. for a diesel-electric submarine. probably the most expensive of meric number allotted by As an emergency stopgap, When a submarine is sub- the three. the IT Department to a per- German firm Atlas Elektronik merged, it is far harder to detect. son, firm or entity. was contracted to modernise 64 The new proposal, called More on business-standard.com