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SUNDAY, 9 FEBRUARY 2020 12 pages in 1 section WORLD P8 WORLD P9 MUMBAI (CITY) ~10.00 THE BILLIONAIRE’S BIG JOB VOLUME XIII NUMBER 47 BEZOS UNLOADS $4 BN OF AMAZON STOCK IN A WEEK OF RESTORING ASTON MARTIN

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M&M Q3 PBT SLUMPS CAPITAL DECIDES 55% TO ~867 CRORE Govt working towards 8% Mahindra & Mahindra’s (M&M’s) consolidated earnings before interest, depreciation and tax fell 4.8 per cent year-on-year (YoY) to growth rate: Sitharaman ~4,020 crore, in line with the 4.5 per cent Exit polls predict YoY fall in net sales to ~25,020 crore. Profit before tax (PBT) fell a sharp 54.7 per cent to FM says country’s ~867.7 crore due to a surge in interest macroeconomic outgo and depreciation, compared to the year-ago period. 3 > AAP landslide in parameters are sound T E NARASIMHAN COMPANIES P2 Chennai, 8 February CRISIL lowers Indiabulls Delhi elections Finance Minister Nirmala Sitharaman Housing long-term rating said on Saturday that key macroeco- Rating agency CRISIL has downgraded nomic parameters of the country were Indiabulls Housing Finance’s long-term Cong may draw a blank; “sound” and the government was rating from “AA+” to “AA”, citing continued BJP could improve tally working towards the goal of reaching challenges on funding access diversity an 8 per cent growth rate. faced by the firm. CRISIL also revised the ARCHIS MOHAN “The economy is strong, foreign outlook on the long-term ratings to ‘stable’ New Delhi, 8 February exchange reserves are at its highest, from ‘negative’. and investments from abroad con- Finance Minister Nirmala Sitharaman with secretaries of her ministry at an ll the exit polls released after the tinue steadily,” Sitharaman said while interactive session on the Union Budget in Chennai on Saturday PHOTO:PTI end of polling for the 70-member interacting with economists, traders, ECONOMY P4 Delhi Assembly elections on and industry associations at an event “THOUGH THERE ARE DISCUSSIONS ON WHETHER ECONOMIC GROWTH India, Sri Lanka discuss A Saturday evening predicted a in Chennai. HAS COME DOWN TO 5 (PER CENT) OR 6 (PER CENT) FROM 8 PER CENT, comprehensive win for the incumbent “We are sound in macroeconom- ways to boost trade Aam Aadmi Party (AAP). The counting of ics. Even though there are discussions OUR BASE IS AS STRONG AS IT WAS WHEN THERE WAS votes will take place on Tuesday. on whether the economic growth has PHOTO: DALIP KUMAR 8 PER CENT GROWTH” NIRMALA SITHARAMAN, Finance minister The Election Commission (EC) said vot- come down to 5 (per cent) or 6 (per er turnout until 9 pm was recorded at 59.91 cent) from 8 per cent, our base is as good intend to improve performance, before. “When international markets per cent, a decline of about 7 per cent over strong as it was when there was 8 per it is good. We will return to 8 per cent are fluctuating, and coronavirus and the 2015 Assembly polls’ 67.5 per cent. cent growth. If not, will foreign growth,” she said. the US-China trade war are impact- The India Today-Axis exit poll, which exchange reserves be at the current She said people who blamed ing the markets, if one Budget has has had relatively better accuracy com- level? They are higher than ever. Prime Minister Narendra Modi for been able to maintain all the three pared with most other such polls in the Similarly, foreign direct investment growth falling from 8 per cent to 5 markets at good levels, it is the Prime Minister Narendra Modi (right) recent past, predicted a sweep for AAP and WHICH WAY TOTAL SEATS is the highest ever. If it (the govern- per cent should consider that indus- Narendra Modi government’s with Sri Lankan Prime Minister a rout for the Bharatiya Janata Party (BJP). DELHI VOTERS ment’s work) is being criticised with a tries were coming to India like never Budget,” she said. Turn to Page 4 > Mahinda Rajapaksa in New Delhi PHOTO:PTI It forecast 59 to 68 seats for AAP and 2 to 11 70 seats for the BJP. According to the poll, MIGHT GO India and Sri Lanka agreed on Saturday to AAP may bag a vote share of 56 per cent, the AAP BJP Cong strengthen cooperation in trade and BJP 35 per cent, the Congress 5 per cent, India Today-Axis 59 - 68 2 - 11 0 investment. New lines of credits announced and others 4 per cent. Other exit polls pre- Cipla acquires TV9 Bharatvarsha- in November will deepen development and dicted somewhat better numbers for the 54 15 1 Govt considers urea cooperation, Prime Minister Narendra Modi BJP, but none put it anywhere near the Cicero four women's said, adding that Sri Lanka’s stability, halfway mark of 35 seats. Sudarshan News 41-45 24-28 1-2 security and prosperity was a matter of In the 2015 elections, AAP had won 67 of ABP-CVoter 49-63 5-19 0-4 price rationalisation interest for the entire Indian Ocean region. the 70 seats with a vote share of 54.3 per health brands Times Now- cent, while the BJP won three seats with a 44 26 0 32 per cent vote share. The Congress could Ipsos The proposed move seeks to promote balance ECONOMY & PUBLIC AFFAIRS P3 not win any seats though it had a vote share News X-Neta App 53-57 11-17 0-2 from Wanbury Early-stage funding of 9.6 per cent. Republic TV- between chemical and organic fertilisers SOHINI DAS Delhi BJP President Manoj Tiwari Jan ki Baat 48-61 9-21 0-1 Mumbai, 8 February rounds double in value tweeted that all exit polls would be proven RAJESH BHAYANI Start-ups have seen the size of early-stage wrong on the counting day. “Please save VOTER TURNOUT 59.9% Mumbai, 8 February Drug major Cipla has acquired the funding rounds almost double in the past this tweet. The BJP will form the govern- nutrition products portfolio from two years because of increased foreign ment in Delhi with 48 seats. Please don’t BJP Fertiliser reforms are likely to Mumbai-based Wanbury for an capital in the system, growing traction of blame EVMs (electronic voting machines) AAP 3 be announced soon, according undisclosed sum. established entrepreneurs, and evolved then,” Tiwari said. There could be implica- 2015 67 to a person in the know, and The acquisition, aimed at technology being used across sectors. tions on his continuance as the Delhi unit will focus on shifting the strengthening Cipla’s women’s BJP chief if the party performs poorly. RESULTS subsidy regime from direct health segment, comprises four Delhi Deputy Chief Minister Manish credit to manufacturing com- brands — CPink, CDense, BACK PAGE P12 Sisodia thanked all party workers and sup- VOTER TURNOUT in % panies to farmers, and ensur- Productiv, and Folinine. CPink is Cairn, Voda eligible for porters. “We are on course to secure a mas- 1993 61.8 ing balanced use of chemical used to treat anaemia, CDense is sive win,” he tweeted. At its press confer- 1998 49.0 and organic fertilisers. used for calcium deficiency, tax amnesty: Official ence, the EC said the Delhi polls had 2003 53.4 For direct transfer to farm- Productiv is used to treat infertility, Vodafone Group and Cairn Energy are recorded one of the lowest EVM replace- ers (by crediting subsidy to and Folinine is a folic acid tablet. eligible to settle a tax dispute with India’s ment figures. It said a meagre 0.3 per cent 2008 57.6 their accounts instead of pay- According to IQVIA (December government under a new amnesty EVM machines were replaced and 0.9 per 2013 66.0 ing companies, as is the cur- Moving Annual Turnover), the four program, Pramod Chandra Mody, chairman cent VVPAT (voter-verified paper audit 2015 67.5 rent practice), rationalising or molecules have a market size of of the Central Board of Direct Taxes said. The trail) were replaced. Turn to Page 4 > 2020 59.9 decontrolling the price of urea ~3,100 crore in India. At present, firms will need to pay their taxes by March and disincentivising the use of these brands clock a sales value of to benefit from the interest and penalty chemical fertilisers are under ~59.6 crore for Wanbury. waivers under the program, he added . consideration. Cipla said the nutraceutical Though discussions on products, to be sold under the four these measures have been umbrella brands, would address IN DEPTH going on for the past two SUBSIDY ALLOCATION various health needs for conditions DOMESTIC STEEL PRICES ON THE RISE months, “alternative mecha- ~ crore arising due to nutritional deficien- The day terror struck nisms are not easy to imple- Category FY20 FY21 YoY cies or insufficiencies. These The domestic steel industry has been raising ment and, hence, the decision (RE) (BE) chg (%) include supplements such as mul- Parliament House product prices since November despite the absence is getting delayed,” explained tivitamins, multi-mineral and of green shoots. It has raised product prices by about UREA the source. Imported 14,049 12,050 -14.2 antioxidants for adolescent girls, ~2,000 per tonne for February. Currently, hot-rolled The recent Union Budget pregnant and lactating women, prices are ruling at ~40,000 per tonne in the domestic hinted at some measures, such Indigenous 43,050 38,375 -10.9 women going through menopause, market, up from the 15-month low of ~33,500 per as a reduction in allocation for Directbenefittransfer 10 10 0.0 and for male and female reproduc- tonne rate noted in mid-2019. However, the current fertiliser subsidies. The outlay P&K FERTILISERS tive health. price point is far lower than ~47,000 per tonne rate to the Department of Nikhil Chopra, head of India for hot-rolled noted in October 2018. Higher raw Fertilisers for fiscal year 2020- Imported 10,429 9,296 -10.9 business at Cipla, said, “We are material costs, increased global steel prices and 21 (FY21) was ~71,345 crore, Indigenous 15,906 14,179 -10.9 focused on strengthening our play expectations of a demand pick up have caused the In a memoir, AJAI RAJ SHARMA, who was the compared to the revised esti- City compost 32 29 -9.4 in the women’s health segment by Delhi Police Commissioner during the domestic steel producers to raise prices every month mate of around ~80,000 crore amplifying our four-decade long > RE: Revised estimate; BE: Budget estimate; P&K: Phosphatic attack, recalls how the events unfolded since November so far. ADITI DIVEKAR reports 2 in FY20, a cut of about and Potassic presence in this category.” that fateful day 7 > 11 per cent. Turn to Page 4 > Source: Budget document Compiled by BS Research Bureau Turn to Page 4 > In Hong Kong, coronavirus strikes the wounded city The territory was already reeling from political discord and recession. Now the outbreak is worsening mistrust between citizens and their leaders

ALEXANDRA STEVENSON, AUSTIN RAMZY how much worse it will get,” said Amber The multinational companies that This week the organisers of Art Basel & TIFFANY MAY Suen, a flight attendant with Cathay helped make this city global are Hong Kong, a major event in the arts Hong Kong , 8 February Pacific, the beleaguered Hong Kong restricting travel there. Some are world, said they would cancel the event. airline that on Wednesday asked its advising or requiring returning While the global reaction may be Hong Kong has suffered through 27,000 employees to take three-week employees to quarantine themselves. extreme, the threat can feel real in such months of political protests. Its unpaid furloughs to save money. And getting to Hong Kong is a densely populated city, economy is shrinking. Mistrust divides Suen endured Hong Kong’s earlier becoming increasingly where apartments and offices its people from its leaders. Locals and problems, like the outbreak 17 years ago difficult: Virgin Australia on PAGE 8 are stacked expatriates alike already talk openly of SARS, which killed almost 300 people Thursday joined United AMERICAN DIES OF on top of each other, about leaving. and briefly knocked the territory’s Airlines and American CORONAVIRUS IN sometimes 40 stories or more. Now the coronavirus is dealing the economy off track. This time feels Airlines in cutting service. CHINA AS GLOBAL On Wednesday, managers Asian financial capital another different, she said, as Hong Kong Italy has suspended TOLL SET TO of a Hong Kong skyscraper devastating blow. Airlines are cutting endures political, economic and social flights from Hong Kong, SURPASS SARS called Kowloon Commerce service, isolating an international city crises all at once. while the Philippines and Center said someone who from the rest of the world. Schools are “During SARS,” she said, “people Taiwan are requiring arrivals worked there had been closed. Panicked residents are hoarding were still working together.” to go into quarantine. Even the city’s diagnosed with the coronavirus. The rice, face masks and — in the latest run The new coronavirus, which has Passengers arriving at the Hong Kong International Airport get checked for Philippine domestic workers, a mostly building’s other tenants include Bank of — toilet paper. killed hundreds and sickened thousands coronavirus flu. The virus outbreak is fanning fears of global isolation PHOTO:REUTERS female group of 200,000 who toil inside America, the Swiss bank UBS, the phone In the air runs a new emotion for a in mainland China, has been much less Hong Kong’s tiny apartments to support giant China Mobile and international city where the glimmering skyline once prevalent in Hong Kong. One person has world, and its grocery stores remain the city has tightened but not fully their families back home, were told this shipping firms. The sudden isolation seemed to promise riches and died and at least 26 have been infected, largely well stocked. closed the border with the mainland. As week that they would need to undergo a only adds to the economic pain. opportunity: fear. mostly while travelling in the mainland. The world is not drawing a a result, people in this global city are 14-day quarantine if they returned to ©2019 The New York Times News Service “We don’t know when it will end or Its hospitals are respected around the distinction, however, in part because feeling increasingly cut off. the Philippines. Turn to Page 4 > 2 COMPANIES MUMBAI | 9 FEBRUARY 2020 1 > IN BRIEF Domestic steel prices head north Sustainability of price hikes to be tested over next three months Home market in focus ADITI DIVEKAR Mumbai, 8 February RATE HIKE (~ per tonne) amid surge in demand omestic steel industry has been continuously raising product ISHITA AYAN DUTT tors fuelling the increase. D prices since November despite Kolkata, 8 February “Infrastructure and construction sec- the absence of green shoots. tor has seen some of the demand “There are no strong demand indi- A pick-up in demand for steel and coming back and also in the auto sec- cators or green shoots at all which can 1,000-1,500 successive price hikes is prompting tor,” said an executive of another keep these price hikes sustainable. companies to bring back focus on the major steel producer. Demand from infrastructure is still domestic market. As a result, there has been some Maruti Suzuki showcased the 4th generation Japan model of to pick up and auto continues to be 1,700-2000 Steel companies have increased correction in inventories across sup- off-road vehicle Jimny at the Auto Expo in Greater Noida. The weak,” Sushim Banerjee, director 1,000 prices of flat steel by ~1,700-~2,000 a ply chains. JSW’s inventory over the vehicle, powered by a 1.5-litre petrol engine, has power of general at Institute of Steel tonne in February, the fourth last quarter, for instance, has reduced

75 kW/6,000 rpm and torque of 130 Nm/4,000 rpm PHOTO: TWITTER Development & Growth (INSDAG) 500-750 increase in a row. Prior to the latest by 245,000 tonne. Over the next few told Business Standard. hike, the price differential between months, Acharya expects demand to Domestic steel producers have domestic steel and imports was pick up further. Companies expect Vivo to set up 250 DLF sales bookings raised product prices by about ~2,000 about $30 a tonne. the infra push by the government to stores this year to up 21% to ~2,156 cr per tonne for February. The factors that led to the price spur steel demand. The government's “The February price hike is also in hike are an increase in international commitment to investment in infra- expand retail biz from Apr-Dec 2019 anticipation of a demand pick-up that rates by $50-$100 a tonne in the past structure was reiterated by the finance Smartphone maker Vivo on Realty major DLF’s net sales stockiest have stocked their yards. few months and an upward push in minister in her budget speech. Saturday said it is planning to bookings rose 21 per cent to There is no on-ground demand so Nov ‘19 Dec ‘19 Jan ‘20 Feb ‘20 raw material prices. JSW The improvement in add over 250 exclusive stores ~2,156 crore during April- far,” Banerjee added. Steel, director (commer- demand is prompting this year to its retail network in December, 2019-20 on better Higher raw material costs, industry,” said Banerjee of INSDAC. among other segments to which steel cial & marketing), Jayant steel companies to focus the country. The company has demand for its completed increased global steel prices and Of the total domestic steel companies are giving the products. Acharya, said, “There is an on the domestic market. launched a new experiential inventory. Its sales bookings expectations of a demand pick-up demand, majority comes from the Demand is extremely weak and pro- improvement in demand. Acharya said JSW’s flagship store in Thane, stood at ~1,788 crore in the have been the only reasons for domes- infrastructure sector followed by the ducers are simply being opportunis- Prices have bottomed exports moderated from Maharashtra and plans to year-ago period. According to tic steel producers to raise prices every auto industry. A marginal of about tic,” said Mumbai-based dealer who is out.” 31 per cent of total sales in have 20 more such stores its investor presentation, DLF’s month since November so far. 10-12 per cent of the total steel con- also a member of Bombay Iron After a slump in the second quarter to 24 across metros and state sales bookings stood at ~731 Currently, hot-rolled prices are rul- sumption goes towards consumer Merchant’s Association. September-October, per cent in the third quar- capitals to offer a distinct crore in the third quarter of ing at ~40,000 per tonne in the durables. The July-September period is usu- prices started moving up ter. “Some moderation customer experience in an this fiscal as against ~563 crore domestic market, which is up from “In our view, the contemplated ally considered as a slack demand since November. “There is an was expected in the fourth offline retail space, Vivo said in in the corresponding period of the 15-month low of ~33,500 per tonne price hike (in February) may not be season for steel as industrial activity International prices of hot improvement quarter as well,” he said, a statement. PTI< the previous year. PTI< rate noted mid-2019. However, the fully absorbed as Japan FOB (free on comes to a standstill across country rolled coil (HRC) in April in demand. while reminding that the current price point is far lower than board) price may follow the dip in due to monsoons. last year were at $530 a Prices have fourth quarter was sea- Central Park to 200% import duty ~47,000 per tonne rate for hot-rolled CFR Vietnam price. Also as China’s Meanwhile, traders are expecting tonne. In September- bottomed out” sonally a strong quarter. noted in October 2018. price may slip when companies some upside in demand from the real October, it dropped to JAYANT ACHARYA “The focus is clearly on invest ~1,000 cr hike to impact toy Tata Steel, Sajjan Jindal-led JSW resume work on February 9. This may estate sector after the Reserve Bank of $430 a tonne and now it is the domestic market. Steel, Naveen Jindal-led Jindal Steel result in imported prices slipping to India (RBI) today announced some around $505 a tonne. JSW Steel, director Whenever there is an (commercial & in Gurugram business: Industry & Power and state-owned Steel discount compared to domestic relief measures to boost consumer It, too, holds for domes- increase in prices, the focus marketing) Real estate company Central More than a 100,000 retailers Authority of India (SAIL) are among ones,” said a note from Edelweiss loans for housing. tic prices, which have been is on the domestic market. Park on Saturday said that it across the country will be hit by the top steel producers in the country. Securities. “So far the only positivity that can moving up since Even if there is some dif- plans to invest around ~1,000 200 per cent import duty hike, “Raising prices is fine. The ques- As per Joint Plant Committee be seen in the industry is that the November. In the past three months, ferential in import and domestic crore to develop a luxury said toy importers, who went tion is sustainability of the price hike. data, during Apr-Nov India’s domes- uncertainty in terms of consumption the increase passed on to customers prices, transportation time makes up housing project in Gurugram. on strike on Saturday. The Where is the demand?” said a tic steel consumption stood at 66.5 pattern has gone completely. During is about ~3,000 a tonne. However, for it. Exports to Europe take two-three The company will develop over Centre, in the Budget, has Mumbai-based trader on condition million tonne, up 3.65 per cent from the fiscal, companies have had to cut companies and analysts are watch- weeks,” said another producer. 500 housing units in the proposed raising the import of anonymity. same period last year, while produc- capex due to demand slowdown. The ing developments around With the increase in prices, there is 13-acre housing project duty on toys from 20 per cent to Meanwhile, some industry offi- tion was at 67.66 million tonne, up 2 industry has come out of that situa- Coronavirus that has weakened a clear-cut case for companies to ‘Bellavista’, which is part of 60 per cent from the next fiscal, cials were of the view that customs per cent from last year. tion. That is the only real positive so demand for the metal from China increase focus on the domestic mar- nearly 50-acre township saying that the step would duty levied on consumer durables in Industry officials are of the view, far,” informed Banerjee. and impacted prices. Industry ket, said Jayanta Roy, senior vice-pres- ‘Central Park Resorts’ in support the MSMEs and pro- the Union Budget for FY21, could that the next 2-3 months would be JSW Steel decided to “recalibrate” sources said, for now, the prices ident, ICRA. Gurugram. Central Park has mote local manufacturing. The bring in mild demand in the market very crucial for the domestic steel its capital expenditure for this year increased in February have been To bring down the inventory levels, already launched the first toy wholesalers went on strike for steel. industry to test if the risen prices are and brought it down by ~4,700 crore. absorbed by the market. Long prod- steel companies had resorted to tower comprising 360 studios contending that the import “The slight demand from con- sustainable, as the strong consump- Tata Steel also revised the uct prices, too, have been increased increase exports in the second quarter. and one bedroom apartments duty hike will result in the sumer durables is not enough to tion period will continue until May. FY20 capex to ~8,000 crore from by ~1,500-2,000 a tonne. However, month-on-month exports starting at ~1.76 crore. PTI< closure of businesses. PTI< revive demand in the domestic steel “Dealers are priced the highest ~12,000 crore earlier. Restocking is one of the major fac- have been coming down. ITC, Emami shift focus to rural markets Indiabulls arm gets CRISIL AVISHEK RAKSHIT square feet of trade assets, crunch in market liquidity Kolkata, 8 February which incidentally is the conditions, and disruptions largest in store merchandising and floods in several parts of downgrade on fund access Fast-moving consumer goods in the country, Hindustan the country. ABHIJIT LELE crore in Q2FY20. (FMCG) majors like ITC and Unilever (HUL) also has priori- While ITC continued its Mumbai, 8 February Further, it received propos- Emami are scaling up their tised increasing its direct dis- rural consumer connect pro- als of around ~5,500 crore for direct reach in rural areas to tribution reach. grammes in identified low pop- Rating agency CRISIL has sell-down/refinance of assets in combat subdued consumer sen- According to an open ulation group markets with its downgraded Indiabulls its commercial credit book, timent in these pockets. They access journal, International brand communication focused Housing Finance’s (IBHFL) which have been either execut- hope such a move — backed by INTO THE HINTERLAND Journal of Research — on highlighting consumer value long-term rating from “AA+” ed or are in the process of being consumer connect initiatives — 80% of ITC’s newhandler directly covered about Granthaalayah, over the offers and build social and emo- to “AA” citing continued chal- executed. can help push sales. base came in from rural areas 50,000 villages decades since its launch in tive brand connect, Emami lenges on funding access Home loan (HL) and loans In view of the ongoing slow- Emami expanded its HUL, ITCemploying 1997, HUL has appointed 6,000 strengthened its brand connect diversity faced by the firm. against property (LAP) down, which has impacted footprintto more than e-commerce platforms and sub-stockists, because of by associating popular brand CRISIL also revised the out- disbursements stood at ~4,966 demand in rural India, ITC which its distribution network endorsers who enjoy mass look on the long-term ratings to crore in Q3FY20, up almost 20,000 towns and rural digital route in rural areas doubled its rural stockist net- directly covered about 50,000 reach equally cutting across ‘Stable’ from ‘Negative’. The rat- 25 per cent from the previous work in the current financial locations Emami banking on online villages and is reaching 250 both urban and rural markets. ing on the commercial paper remain elevated. High depend- quarter. There has been sell- year, with significant increase HUL’s distribution network routes forurban centres only million consumers. This trans- On the other hand, FMCG (CP) issue and short-term non- ence on bank funding (largely down of wholesale exposures in coverage across low popula- lates into reaching 37 per cent players are also leveraging e- convertible debenture pro- working capital and securiti- over the past few quarters. tion group markets. of rural consumers directly. commerce platforms and gramme has been reaffirmed sation lines) has reduced the As a consequence, the pro- “We have actively increased coming from a rural base. to more than 20,000 towns The rural distributor has a set using digital technology to at ‘A1+’. While there has been diversity in resource profile, portion of commercial credit our direct reach in rural India In case of Emami, which with a population of around of stockists attached to it that drive sales. some improvement in funds CRISIL added. exposures in total assets under by adding more than 25 per has one of the highest expo- 3,000. drives distribution in villages For example, both HUL as raised by IBHFL in Q3FY20, It also said the pace of bank management (AUM) reduced cent new markets to the exist- sures in rural areas among its “Van branding and visual using unconventional trans- well as ITC is using Big Data they have mostly come from sanctions has increased since to 16 per cent as on December ing large serviced base,” said peers, the company is banking merchandising at outlets port like tractors, bullock carts analytics to attract consumers the banking channel and con- Q3FY20, and that there had 31, 2019, from 21 per cent as on an ITC spokesperson. on its Project Dhanush initia- through point-of-purchase vis- and others. from small towns or rural India tinue to remain lower than the been an uptick in retail dis- March 31, 2018. ITC’s handler base current- tive, which it undertook three ibility has proved to be an Nearly all FMCG compa- by offering suitable products, pre-September 2018 levels. bursements and continuing The company is taking steps ly stands at 6.2 million outlets years ago. effective consumer influencer nies like Marico, HUL, ITC and stock-keeping units, and com- The incremental fund rais- traction in the monetisation to reduce the commercial cred- and it continued to deploy In the past three years fuelling rural channel growth,” the rest have been indicating municating its portfolio. HUL ing from the debt capital mar- of the wholesale portfolio. it exposure further in the near resources to augment the out- under this initiative, aimed at said Mohan Goenka, director that the operating environ- has also come up with an kets has remained very low in IBHFL received bank sanc- term, and is in advanced talks let coverage aggressively, with reaching the deepest and at Emami. ment has been challenging, online ordering app for its recent times. tions (including securitisation with investors/financial insti- nearly 80 per cent of new han- remotest of geographies, With more than 3,000 dis- with drop in consumption, salespeople as well as opt for Secondary market yields lines) of around ~11,000 crore tutions to refinance more such dlers added in the current year Emami expanded its footprint tributors and 600,000-plus especially in rural areas, severe customised promotions. for IBHFL paper continue to in Q3FY20, compared to ~7,580 exposures. Bengaluru’s real estate emerges unscathed from slump Besides traditional segments, demand for co-living, co-working, and senior living has kept sector buzzing

SAMREEN AHMAD increase in sales of almost 25 per cent Prestige Estates which reported Bengaluru, 8 February year-on-year in FY20 so far. FLEXIBLE BENGALURU: over a two-fold jump in consolidated Another striking feature is the WORKSPACES Present in locations net profit at ~161.8 crore for the Last year, the real estate sector reeled reasonable pricing of luxury homes (million sq ft) along Outer Ring December quarter has also announced from new goods and services tax which begins from ~75 lakh. “Among four new commercial projects in 2018 2019 Road, Whitefield, regulations, non-banking financial the NRIs too, Bengaluru continues to Bengaluru. 4.2 Electronic City companies crisis, and liquidity crunch. be the most favoured destination for 3.8 catering to both Senior living is another sector that Yet, Bengaluru managed to emerge luxury real estate investment in India, is gaining attention. Research data 1.6 working professionals unscathed as one of the most active due to the presence of infrastructure 1.4 1.1 and students shows that there will be around 300 markets in both the residential and and homes designed with the latest RISING REAL ESTATE DEMAND IN SILICON VALLEY OF INDIA 0.8 million elderly Indians by 2050. With commercial segments. facilities that match their international Stock Launch Absorption Stock DELHI-NCR: less than 1 per cent of the demand for According to Anarock Property lifestyle,” explained Surendra Region Year opening new total closing BengaluruMMR Delhi- Facilities prominent senior living units available today, this Consultants, Bengaluru has Hiranandani, chairman Bengaluru 2018 108,183 45,553 44,704 109,032 NCR in Gurugram, driven segment is set to explode in the coming been the most active market and managing director, Source: PropEquity years. “The current hurdles facing this Bengaluru 2019 109,032 40,946 45,039 104,939 by working in 2019 with the lowest House of Hiranandani. professionals sector of consumers are social stigma, inventory overhang of 15 The city is also Kolkata 2018 52,597 16,876 16,469 53,004 BETTING BIG ON manpower, and affordability. The real months, despite reasonable witnessing a shift in Kolkata 2019 53,004 14,323 17,366 49,961 CO-LIVING MUMBAI: Due to estate industry has to put forth efforts high property prices, supply addition. This was consumer behaviour that MMR 2018 329,287 78,138 97,686 309,739 Market size to facilitate this surge of seniors who well below the 18 months has prompted developers to city has seen low will need housing. We are now getting MMR 2019 309,739 61,136 91,199 279,676 threshold needed for modify their offers to $10.8 penetration of ready to launch projects in the space of NCR 2018 174,486 30,602 41,690 163,398 $5.13 BILLION consideration as a healthy accommodate the demand BILLION 2025 co-living operations senior living,” said Reeza Sebastian, realty market. Inventory for smart homes, co-living, NCR 2019 163,398 35,892 38,556 160,734 2019 Source: Cushman & president, residential business, overhang is the total unsold REALTY and co-working space. Source: PropEquity Wakefield report Embassy. homes divided by the CHECK- III Co-living spaces are The Brigade Group has already average monthly sales rate. becoming more popular launched Parkside (independent living “The Bengaluru realty with millennials looking for On the commercial front, with the here compared to all top cities. BuzzWorks. for seniors) across three locations in market has always been driven by end- more dynamic options that provide rise of the gig economy and technology According to PropEquity, the city has WeWork India, owned by Embassy, the city. “Brigade is also experimenting users coupled with steady economic more features and amenities than the that allows the concept of a ‘liquid about 25 msft under various stages of is in talks to raise around ~1,400 crore with hybrid models where half the activity, which is powered by a high usual rented space. workforce’, co-working spaces are completion to be delivered in the next this year to expand the business. project is senior living and half is percentage of the white-collar According to data, there will be a receiving more attention. Demand for three years. Acting on the high demand in regular, based on feedback from senior migratory population. It is one of the demand of 37 million co-living spaces co-working spaces in the city has been “Of the total office space leasing in commercial realty, Puravankara is citizens who want to feel connected to primary reasons that keeps the city’s by 2025 from millennials who form 42 rising. Over a dozen brands are gaining India, 10 per cent is now going to aiming to have 20-25 msft (million the wider community,” said Pavitra realty market stable in comparison to per cent of the total workforce in India. momentum — CoWrks, WeWork and flexible workspace,” said Nirupa square feet) of commercial space Shankar, executive director of the other key cities,” said Ashish R Predictably, several builders such as Innov8 Coworking to mention only a Shankar, executive director at the operating in the next four to five years. Group. Puravankara, managing director, Embassy, Puravankara, and Brigade few. The space absorption in the co Brigade Group which has launched its As of now, it has sold approximately Puravankara, which has registered an are investing in this segment. working vertical is also the highest own brand of co-working spaces called two msft of projects. Series concludes MUMBAI | 9 FEBRUARY 2020 COMPANIES 3 . <

N REPORT CARD N M&M Q3 PBT Early-stage funding up 2x since ‘17 Healofy, a pregnancy and parenting and Ola — today the model is about Chinese investments, BIGGER BITES app that caters to people in regional looking to build businesses that solve serial entrepreneurs Deal count Seed Series A Series B languages, and just announced India-specific problems. slumps 55% Figures in brackets: Average round size $ million another investment in Axio, a For example, RailYatri, an indian give push to growth Source: Tracxn medtech venture that uses military- travel marketplace site, provides 667 grade technology to stop bleeding information on which platform is (1) 609 415 PAVAN LALL (1) (1) immediately. crowded, what the chances are of a to ~868 crore Mumbai, 8 February 256 274 The other push is coming from ticket being confirmed. 229 the fact that there are far more estab- Sandeep Murthy, partner with (5) (6) tart-ups have seen the size of 142 141 (7) 131 lished entrepreneurs in India today venture capital firm Lightbox, which early-stage funding rounds (15) (15) (20) who are looking to start the next ven- backed Bombay Shirt Company, and S almost double over the past two ture than five years ago. Examples Rebel Foods, says that the trend isn’t years on account of increased foreign include Freecharge Chairman Kunal limited to India. “I would argue that capital in the system, growing trac- CY17 CY18 CY19 Shah, who started CRED; former it’s a trend globally and is because of tion of established entrepreneurs, as Myntra Founder Mukesh Bansal, who a mix of things,” he says. “What a well as evolved technology being used about $1.31 billion till November in “My sense is that two things are started Cure.fit; former Ibibo founder company used to need has all gone across sectors to grow companies calendar year 2019, up from just $65 happening. It’s no longer just about Ashish Kashyap, who started up: cost of customer acquisitions, faster, bigger, and better. million in 2017. “The other factor is fintech plays for venture capitalists INDwealth; and, Sachin Bhatia, the cost of efficiencies in technologies, Roopa Kudva, managing director that as the landscape has evolved, (VCs) and investors. The second is former co-founder of MakeMyTrip, and the cost of managerial talent.” of impact investor Omidyar Network investors have become much more there is a need across the board for who co-started Bulbul.tv. The cost of a product head that was India, says there are a lot more focused on unit economics, moneti- any business model to improve with “Once an entrepreneur has had a ~50 lakh three years ago is now Chinese funds chasing companies. sation, and profitability than five years the incorporation of technology and track record of success, it automati- between ~70-80 lakh. That includes Fosun RZ Capital, ago, when it was just growth that was that doesn’t matter how you define it cally allows for the next venture to be “The start-up ecosystem has CDH Investments, GGV Capital, chased,” Kudva adds. whether it is software, AI, or machine capitalised and funded at higher lev- matured and there is a sense of confi- Tencent Shunwei Capital, and Archana Hingorani, managing learning. Take healthcare, for exam- els,” Kudva said. dence and I’d even go so far as to say Morningside Venture Capital. partner at early-stage venture fund ple, everything on it is being over- In addition, while several ventures that we may not all know it yet, but are According to market research by Siana Capital, says that it’s clear that hauled as we speak, and that leads to backed by private equity (PEs) and in transition from the large older busi- PRESS TRUST OF INDIA Revenue also moderated to Tracxn, which tracks start-ups and funding rounds have grown in value a large appetite for capital.” VCs earlier were copycats of interna- ness houses to newer-age tech-driven New Delhi, 8 February ~12,120 crore in the latest quar- funding, India saw investments of over the last couple years. For instance, Omidyar invested in tional businesses — including Flipkart ventures of tomorrow.” ter, against ~12,893 crore in the M&M’s consolidated earnings same period last year, it said. before interest, depreciation and Vehicle sales during the third tax fell 4.8 per cent year-on-year quarter stood at 123,353 units, (YoY) to ~4,020 crore, in line with compared to 133,508 units in the Carmakers next challenge: Getting Indian buyers to purchase EVs the 4.5-per-cent YoY fall in net same period last year — a sales to ~25,020 crore, but profit decline of 8 per cent, it added. before tax (PBT) fell a sharp 54.7 Tractor sales slipped 6 per BLOOMBERG achieve price parity with have done for e-KUV is very n’t make sense,” said Manohar per cent to ~867.7 crore due to a cent to 81,435 units in the third New Delhi/Mumbai, 8 February gasoline-powered cars until aggressive and the reason Bhat, head of sales and mar- surge in interest outgo (up quarter, as against 87,036 units the early 2030s, says BNEF. we’ve done that is to kick start keting at Kia Motors India. “We almost 19 per cent) and depreci- last year, while exports of vehi- Mahindra & Mahindra’s “Mass adoption of electric the ramp-up of EVs.” came into the SUV segment ation (59 per cent), compared to cles and tractors declined 22 per launch of its e-KUV at a price cars in India will not happen Goenka expects a decline because the largest demand is the year-ago period. cent to 9,633 units as compared of ~8.25 lakh ($11,587), com- unless the gap in in cell prices and increased there — that’s the sweet spot The auto company reported to 12,363 units in the same peri- pared to its next cleanest upfront prices of electric and local manufacturing to bring for us.” 73 per cent decline in consoli- od a year ago, the company option — a mid-range petrol ICE vehicles is brought prices down over 3-5 years. India’s government is dated net profit to ~380 crore for added. variant at ~6.5 lakh — high- down,” said Shantanu Lower prices could drive pushing for a faster adoption the December quarter, dragged However, it said, the Indian lights the challenge of pricing Jaiswal, head of research for sales volumes, spreading the of electric vehicles — hoping by sluggish vehicle sales. auto and tractor industry dur- electric cars that could entice India at BNEF. fixed costs and lowering at least 15 per cent of all vehi- It had posted profit after tax ing third quarter has shown buyers. A global model, such To address this, Hyundai prices even further, he said. cles on the road will be elec- (PAT) of ~1,396 crore for the same some signs of trend reversal and as Hyundai Motor India’s is working on a mass-market tric in five years starting 2018 quarter in the last financial year, has seen moderation in the dou- Kona electric SUV, starts at electric car for India, accord- Muted demand — to deal with the deadly air M&M said. ble digit de-growth seen in the ~2.5 million and has sold just ing to Tarun Garg, sales direc- Meanwhile, the muted pollution in its cities and curb “The results of Q3FY20 first half, it said. about 300 units in seven tor at its Indian unit. The demand for electric vehicles is carbon emissions from fossil includes a net loss on account Good monsoon, the festive months since its launch. company plans a launch in 2- keeping some automakers on fuels. An increased fleet of of exceptional and one-off items season demand, improved More than half the pas- 3 years, he said. which promises to bring the million rupees is going to be the sidelines. such vehicles is also seen as of ~554 crore as compared to a liquidity conditions, new senger vehicles sold in India Apart from price, a lack of cost of vehicles down, is also very difficult,” Pawan Kumar “In India, the problem is boosting demand for electric- net gain on account of excep- launches, were the key reasons last year cost $8,000 or less, charging infrastructure that keeping potential buyers on Goenka, managing director at customer demand for EVs is ity, which has declined for five tional and one-off items of ~519 for this moderation in de- according to BloombergNEF creates range anxiety and rap- the fringe. Mahindra & Mahindra said in not that great. For a new straight months ended crore in Q3FY19,” it said. growth, it said. (BNEF). Electric cars won’t idly evolving technology, “Pricing EVs at below 1 an interview. “The price we entrant like us, it frankly does- December. Client wins, J K Cement Q3 health care income rises boost HGS Q3 to ~1,428 crore

Hinduja Global Solutions (HGS) J K Cement on Saturday has posted 93.7 per cent jump reported a more than two- in consolidated net profit to fold growth in net profit to ~71.1 crore for December ~137.5 crore for the quarter 2019. December 2019 quarter. HGS logged profit of The company had ~36.7 crore in October- earned a profit of ~60.90 December 2018, it said in a reg- crore in the same quarter ulatory filing. of last year. The company saw revenue Total income was from operations grow 5 per cent ~1,427.84 crore during the to about ~1,336 crore in the three-month period as quarter under review, as against against ~1,284.98 crore in ~1,273 crore in the third quarter the same period of previ- of 2018-19. ous fiscal, J K Cement said “HGS posted a strong rev- in a regulatory filing. PTI enue growth in Q3 FY2020...The growth was led by demand in both Healthcare and CES (Consumer Engagement Oberoi Realty Services) verticals across geog- raphies,” HGS CEO Partha Q3 income DeSarkar said. declines While CES got a boost from recent client wins and the fes- Oberoi Realty has reported 7 tive season, the healthcare busi- per cent increase in consol- ness saw strong growth driven idated net profit at ~148.24 by a strong Open Enrollment crore for the quarter ended season across the US, Jamaica, December despite fall in the Philippines and India, he total income. Its net profit added. in the year-ago period stood In November 2019, HGS had at ~137.93 crore. Total announced its exit from the income, however, fell to Indian Domestic CRM market ~536.53 crore in the third by selling its business to quarter of 2019-20 from Altruist. The transaction closed ~548.79 crore in the same on January 31, 2020. PTI period a year ago. PTI

Ford board leaves embattled CEO with little room left for error BLOOMBERG results, dogged by the disas- 8 February trous rollout of the redesigned Explorer SUV, and A little executive bloodletting forecast more disappointing can sometimes ease the pres- numbers for the upcoming sure on an embattled chief year. executive officer (CEO). But “This signals to everyone Jim Hackett is unlikely to see that Farley is Hackett’s suc- any letup from Ford’s board cessor, unless they plan to go following the surprise early outside the company,” retirement of one his two top said David Whiston, an ana- lieutenants. lyst with Morningstar in Joe Hinrichs, Ford’s 53- Chicago. “Perhaps it could be year-old automotive presi- nine months from now, or it dent, will leave on March 1 could be 18 months from now, after almost two decades with but they will make an the company. As a rising star announcement that Hackett under celebrated former CEO is retiring and Farley takes Alan Mulally, he was put on over as CEO.” the fast track to be a potential heir to the top job. Staying put With Hinrichs out of the Hackett, who was asked by an picture, Ford is elevating Jim analyst 18 months ago Farley, the company’s only whether he expected to last in other president, to become the job, told reporters Friday the first chief operating offi- he’s not going anywhere. cer (COO) since the automak- “As far as my tenure, this is er planned for Mulally’s suc- the kind of thing I love to do cession seven years ago. The and I’m having a really fulfill- announcement that the ing assignment here,” said the board will revive the role of former CEO of office-furni- COO came days after Hackett ture maker Steelcase “I need reported dismal earnings to be here.” 4 YOUR MONEY MUMBAI | 9 FEBRUARY 2020 1 >

INVESTMENT BS TUTORIAL

Jayant Pai Blindly aping FPIs can be risky Financial literacy 1. Skytra, a subsidiary of Airbus, aims to launch Follow a core and portfolio ______. Assign weights to various categories of funds and book profits where necessary strategy A. A stock exchange In such times, investors should build a B. A ticket resale exchange JIMMY PATEL portfolio of equity-oriented mutual C. An aviation turbine fuel exchange fund schemes based on the “core and D. A family of indices espite the slump in India’s satellite” approach to investing. This gross domestic product (GDP) approach can offer investors the best of Dgrowth rate, Foreign Portfolio both the worlds—short-term, high- 2. The 'two pizza rule" was popularised Investors (FPIs) have continued to reward opportunities and long-term, by ______. invest in India. Since the time the steady-return investing. A. Bill Gates finance ministry took a number of The term “core” applies to the more B. Larry Ellison measures to provide an impetus to the stable, long-term holdings of the port- C. Jeff Bezos economy’s growth rate, they have folio, while the term “satellite” applies D. Mark Zuckerberg engaged in spirited buying. But retail to the tactical portion that can help investors need to bear in mind that a push up the overall returns of the port- strategy that works for FPIs may not be folio, across market conditions. Core 3. Which is the richest Grand Slam Tennis Tournament in suitable for them. holdings should form a major portion the world? Reforms such as the Goods & of the mutual fund portfolio. They A. Australian Open Services Tax (GST), Bankruptcy Code, should ideally consist of a large-cap B. French Open Digital India, Start-up India, Make in fund, a multi-cap fund and a value- C. Wimbledon India, skill development, affordable style fund. The rest, say, around 35-40 D. US Open housing, and steps like a timely boost per cent, can be “satellite” holdings to the realty sector, emphasis on bet- consisting of a mid-cap fund, large- ter infrastructure (Bharatmala and mid-cap fund, and an aggressive 4. Which of these Indian Prime Ministers has not Pariyojana), bank recapitalisation, TACKLING MARKET EXUBERANCE hybrid fund. If the investor is willing to presented a Union Budget? measures taken to boost consump- take the risk, a small portion can be A. Morarji Desai THE ISSUES THE SOLUTION tion, to name a few, have been viewed allocated to a small-cap fund as well in B. Rajiv Gandhi positively by FPIs.  FPIs remain bullish on India despite  Do not stop SIPs amid volatility the satellite portfolio. C. Indira Gandhi In addition, the Reserve Bank of plummeting GDP growth estimates The art of cleverly structuring the D. Jawaharlal Nehru India (RBI) has remained  Follow core and satellite portfolio by assigning weights to each accommodative in its monetary  Valuations in the large-cap space have strategy category of mutual funds, and then policy action and stance to address risen to dangerously high levels  Assign weights to various picking the right schemes for the port- 5. Which of these is not a price-weighted index? growth concerns. The US Federal  Longer-term earnings estimates fund categories and revisit folio can help the investor clock opti- A. Dow Jones Industrial Average Reserve has refrained from increasing remain too rosy them from time to time mal risk-adjusted returns. B. NSE Nifty Fifty interest rates–in fact, it has cut them. At the current levels, when the C. Nikkei 225 And the trade war-related tensions Indian equity market is already near its D. All of the above options between the US and China have eased. Will FPI buying push markets higher disposable income in the hands al fund portfolio will hinge on the port- all-time high, getting blinded by

All these factors have encouraged FPI further up? of people. They will also want enabling folio of schemes they build. supernormal market returns and

investments. FPIs do recognise that there are tax policies, improvement in exports, Legendary investor Warren Buffett investing in an ad-hoc manner based capitalisation.

5. B. 5.

FPIs continue to perceive India as growth-related concerns. Most agen- and so on, which can eventually help said: “Be fearful when others are on current euphoria or news flows can market- (free-float) by weighted is It a promising investment destination cies have downgraded India’s GDP India clock higher growth. Many of greedy and greedy when others are be extremely dangerous. Investors Minister. Prime

that has a stable government intent growth forecast for this year. Moreover, these concerns were addressed by the fearful.” Clearly, the current trail P/E could end up burning their fingers.

on bringing about reforms. consumption is slowing down, infla- Union Budget of 2020. levels, particularly in the large-cap Devising a sensible strategy, and the was he when presented were them

4. A. 4. Cumulatively, during calendar year tion is ticking up, the unemployment space, are not cheap. In fact, they are in astutely constructing a mutual fund of none Budgets, Union 10 presented he Though

Don’t fall prey to over- 2019, FPIs’ net purchase of equities rate is high, there are non-performing the overvalued zone and offer limited portfolio based on thorough research 2019.

exuberance 3. D. 3. was to the tune of ~1.01 trillion. This fig- asset (NPA) related concerns, tax col- margin of safety. On the other hand, and analysis (using both quantitative in money prize total in million 57 USD out paid It

ure makes up for the net selling in lections are falling short, disinvest- With the markets soaring high while the mid-cap and small-cap indices are and qualitative parameters) is essential

2018, which was to the tune of ~32,628 ments are way off the mark, and fiscal the economy slows down, investors attractively placed at lower trailing P/E at this juncture. As the market outlook group. entire the

crore, and is greater than the net pur- slippage can also not be ruled out. need to be careful and not get swayed level than before and offer a reason- changes, the weights assigned to each feed can’t pizzas two where meeting a have Never

chase activity worth ~49,729 crore in A number of forecasts point at GDP by exuberance. Even as earnings esti- able margin of safety. Nonetheless, category of fund needs to be revisited, solution? Bezos' be. likely will it productive less

2. C. 2. calendar year 2017. growth rate dwindling this fiscal year, mates get re-rated upward for certain investors need to know that they are especially in the satellite portfolio. the meeting, a into pack you people more The

Buying by both FPIs and domestic but one can expect some improve- companies, it would be pointless to assuming very high risk when invest- Unless this is done, clocking superior,

(institutional and retail) investors has ment in the next fiscal. The real GDP get carried away by forward state- ing in the Indian equity market at this inflation-beating returns over the long performance. their benchmark to airlines by used

pushed the Indian equity markets to growth across 10 governments has ments or earnings outlook. Sadly, the juncture. term could prove to be a challenge. be can and revenue airline to correlate will They

stratospheric levels. The S&P BSE been 6.3 per cent per annum over the oldest trick in the book of estimating Bouts of high volatility in future While there may be euphoria on worldwide. regions geographical major covering

1. D. 1. Sensex is currently trading above the past 39 years. earnings is that near-term estimates cannot be ruled out. Investors’ Dalal Street, remember that the Indian prices ticket travel air represent will They

41,000 mark, and is close to its all-time In future, while FPIs will continue are toned down while longer-term esti- patience could be tested. economy currently faces several head- high of 42,273.87 (recorded on January to be positive on India, they will also mates are hiked. For several years, the Discontinuing SIPs in volatile times winds. For the market to move higher, Solutions 20, 2020). The trailing 12-month price look forward to more structural market has initially projected ambi- would be a bad idea. Volatility is intrin- the positives need to outweigh the to earnings (P/E) ratio of the S&P BSE reforms that can bolster investment tious earnings growth, but the actual sic to equity markets. It's our ability to negatives. The quiz master is a certified financial planner and head-products, Sensex and the S&P BSE Large-cap activity, result in optimal capacity util- growth has turned out to be lower. So, perceive the situation sensibly and PPFAS Mutual Fund. Index is currently at 25x and 27x, isation, generate employment, pro- do not get carried away. The impact of devise an efficient investment strategy The writer is MD & CEO, Quantum Send your queries and feedback at [email protected] respectively. vide a boost to consumption, and leave corporate earnings on investors’ mutu- that ensures success. Mutual Fund

ECONOMY > FROM PAGE 1 > However, an industry analyst said, the avail- ness community. Most of his tables are Exit polls predict... ability of organic fertilisers could be an empty. Cooper got his start in Hong Kong PEOPLE IN THE NEWS BINAY SINHA In the 2019 Lok Sabha polls, the EVM issue. He said nutrient content in organic as a waiter 26 years ago. “Now the virus replacement was as high as 5 per cent. fertilisers tends to be lower than in urea bites into our other businesses.” Amid allegations that some political par- and, hence, is consumed at a higher rate. Other factors make Hong Kong more ties distributed liquor and cash, the EC said vulnerable than it was during SARS 17 years law enforcement agencies seized liquor ago. China back then was still developing worth ~2.83 crore and narcotics and gold Govt working and growing by double digits, and it need- jewelry worth ~42.32 crore. ed Hong Kong’s money and expertise. The Delhi Assembly polls took place towards growth... Today, China’s growth has matured, and amid a vituperative election campaign, with many companies no longer use Hong Kong some BJP politicians barred from cam- as a gateway into the world’s No. 2 economy. paigning and in the shadow of the anti- More fundamentally, many Hong Kong Citizenship Amendment Act (CAA) protests people no longer have faith in their gov- at several places in the city, particularly at ernment to make the right decisions. Shaheen Bagh in Southeast Delhi. “We’ve been double-hit by social unrest At Shaheen Bagh, women protesters, on and a government that is just disappoint- a sit-in for over a month, voted in batches so ing,” said Paul Yip, a professor and director Hope Sri Lanka that the agitation remains unaffected. at Hong Kong University. “They don't know If AAP were to secure a win, this will be how to deal with unrest, and they don't the third time it will form the government know how to handle the virus.” will fulfil Tamil since its electoral debut in 2013. Citizens had already grown nervous about their government. Hong Kong is a semiautonomous Chinese region, with an Cipla acquires four She was referring to the performance of the independent legal system and guaranteed aspirations: Modi equity, bond and currency markets since individual rights, but its top leadership is health brands... the Budget presentation on February 1. She selected by a process controlled by Beijing. PRESS TRUST OF INDIA ity, security and prosperity in said the government had responsibly used Many in Hong Kong fear the growing New Delhi, 8 February the island nation is important "Through this newly acquired portfolio, we public funds, unlike the previous Congress- power of the mainland Chinese govern- for India as well as for the entire shall be catering to a wide range of patient led governments that gave bank loans to ment in the city's affairs, especially after Manish Goenka-led Emami Group has India on Saturday sought devo- Indian Ocean region. needs, including nutritional deficiencies, “uncles and brothers-in-law” when the the high-profile disappearances of people lution of powers by the Sri On the long-pending Tamil bone health, and sexual health," he said. economy was slowing down in 2008-2010. wanted or disliked by Beijing with little reac- entered into a binding agreement with Lankan government to the issue, Modi said it will be nec- The vitamins and nutrients market in Sitharaman said goods and services tax tion from city officials. The tensions boiled Nuvoco Vistas, part of Hiren Patel-led minority Tamils in the island essary to implement the 13th India is valued at about ~12,149 crore and is (GST) collections were growing as the gov- over late last spring, when Hong Kong's Nirma Group, to sell its entire equity nation and hoped that their amendment of the Sri Lankan clocking 9 per cent average growth, accord- ernment was taking help of improved tech- leaders tried to pass legislation that would aspirations for equality, justice Constitution. The 13th amend- ing to market research firm AIOCD AWACS. nology and plugging the loopholes. She said allow extradition of criminal suspects to stake in Emami Cement for ~5,500 crore and respect will be fulfilled as ment provides for devolution Drug firms are focusing on this area as during the past three months, GST collec- mainland China, where the justice system per provisions of the country's of power to Tamil community many molecules in this segment are still tions had exceeded ~1 trillion. is controlled by the Communist Party. Constitution. in the neighbouring country. out of price control and offer good margins. Ajay Bhushan Pandey, revenue secre- City leaders backed down, but by then, After wide-ranging talks “We held a discussion with tary, said new individual income-tax pro- clashes between demonstrators and the with his Sri Lankan counter- an open mind on issues relat- posals would help taxpayers in many ways. police had become increasingly violent. part Mahinda Rajapaksa, Prime ing to reconciliation in Sri Govt considers He said the Vivad se Viswas scheme was Hong Kong's population became frustrated Minister Narendra Modi said Lanka. I am confident that the expected to get passed by Parliament this as city officials dismissed evidence of exces- the issue was discussed with an government of Sri Lanka will urea price... month and an electronic interface would be sive police violence. Angry voters dealt their ‘open min’ and hoped that the fulfil the expectations of the introduced where taxpayers could find out leaders a sharp rebuke in November, when Tamil reconciliation process Tamil people for equality, jus- According to an analysis by the Phillip the details of their dispute and apply pro-democracy candidates swept elections would be taken forward by tice, peace, and respect within Capital’s Institutional equity research, “The instantly for a settlement. for lower-level offices. Colombo. a United Sri Lanka,” Modi said. cut is largely to accommodate the sharp He said the duty imposed on some elec- Now that mistrust of the government is The two leaders also delib- Calling terrorism a major correction in international inputs prices. tric vehicle components and medical spilling over into anger about the response erated on a raft of key issues threat facing the region, Modi In fact, prices of P&K (phosphatic and potas- devices was to promote 'Make in India', in to the outbreak. like bolstering anti-terror coop- mentioned about the ‘Easter sic) fertiliser inputs declined sharply in line with the Centre's plans. About 7,000 medical workers have gone eration, expansion of trade and Day terror attacks’ in Sri recent months, easing the subsidy burden. on strike, demanding that Hong Kong ful- investment ties, implementa- Lanka last year and asserted While the subsidy reduction in urea was ly close the border with the mainland. tion of joint projects in Sri that both countries will surprising, considering the carry over lia- Coronavirus strikes Carrie Lam, Hong Kong’s top govern- Lanka and resolving the long- expand cooperation to deal bilities of the sector, this could be an indi- ment official, has resisted calls to com- festering fishermen issue with with the challenge. cation of the government moving towards in Hong Kong... pletely close the border. Instead, she has a ‘humane approach’. Rajapaksa said a part of balanced usage of fertilisers by rationalising introduced steps that have cut arrivals. In his comments, Rajapaksa the discussions centred urea prices ahead.” For months, antigovernment protesters Even Hong Kong’s pro-government thanked Modi for his govern- around ensuring security for Urea prices have to be decontrolled or have filled the streets to demand that the leaders have signaled dissatisfaction with ment's 'neighbourhood first both the countries, and rationalised if the subsidy amount is to be pro-Beijing government give them greater Lam. Jasper Tsang, a founder of the city's policy' and the priority he expressed gratitude to India transferred directly to farmers’ bank say in how the city is run. largest pro-establishment party and former attaches to ties with Sri Lanka. for helping his country in accounts. While direct benefit transfer is a Violence and tear gas already scared president of the legislature, said: “The gov- Rajapaksa’s five-day visit to countering terrorism. fiscal issue, the kind of fertiliser used is of away many mainland tourists and business ernment slogan is, ‘Let us unite and fight India assumes significance as “India is our closest neigh- importance for soil health. visitors. Jewellers, luxury retailers and cos- the virus.’” Sunil Mittal-controlled telecom operator his tenure as Sri Lanka's presi- bour and long-standing friend. On fertiliser policy, NITI Aayog member metics shops that catered to mainland “But the unity doesn't seem to be there.” dent from 2005 to 2016 saw The close historical links have Ramesh Chand stressed, “instead of focus- tourists are closing outlets. Restaurants Tommy Cheung, a member of Hong Bharti Airtel has said it will not buy 5G expansion of China's footprints provided solid foundation to ing on ratio of NPK fertilisers, there is a have closed and hotel rooms are vacant. Kong’s legislative council representing the spectrum in the upcoming auction if its in the nation, triggering con- our ties,” Rajapaksa said. need to focus on balancing between organ- Unsurprisingly, unemployment is on the catering industry, said, “Right now, I don't base price is fixed at Trai-recommended cerns in India. Referring to the fishermen ic and chemical fertilisers”. Higher the use rise. “This is a postprotest, frying-pan-into- see the light at the end of the tunnel.” Noting that India has been a issue, Modi said both sides have of organic fertiliser, better the soil health. the-fire situation for a lot of Hong Kong “Where is the help coming from?” he ~492 crore per mHz ‘trusted partner’ in Sri Lanka’s decided to adopt a humanitar- An incentives package for organic and retailers,” said Robert Cooper, founder of asked. “Where is the end of the virus and the development, Modi said stabil- ian approach in dealing with it. natural fertilisers is also on the cards. Enoteca, a restaurant catering to the busi- end of the riots?” 6 ECONOMY & PUBLIC AFFAIRS MUMBAI | 9 FEBRUARY 2020 1 > Russian T-90S preferred When even a rich city like Mumbai is starved of funds over India-made Arjun ANDY MUKHERJEE A POOR RICH CITY Mumbai is dipping into past reserves to finance Acute fiscal stress is building in India’s a ~33,400 crore annual budget (in ~ crore) Despite ‘Make in states and municipalities, including the Compensation urban authority that manages the richest 9,800 India’ push, Army city, Mumbai. This matters. Local bodies for octroi hold the key to lasting solutions for a broad- Property tax 6,800 seems reluctant er crisis of financial resources. Withrawals to buy the tank The federal government’s chronic 4,400 deficits dominate discussions about India’s from reserves AJAI SHUKLA precarious public finances. It’s time to flip From 3,900 New Delhi, 8 February this New Delhi-centric approach. State gov- developers ernment accounts deserve scrutiny because Others 3,400 lthough ‘Make in India’ they collectively spend 36 per cent more has been the central than the federal administration. Yet their Interest on 1,800 A motif of the ongoing fundraising abilities are limited. Of the investment DefExpo 2020 in Lucknow, the ~24 trillion ($340 billion) that Prime Water charges 1,500 army continues to block fur- Minister Narendra Modi’s team hopes to Government ther purchases of the indige- pull in via taxes in the coming fiscal year, 1,300 nous Arjun main battle tank less than a third is intended for the states. A grant (MBT) (pictured), years after it 20 per cent jump looks impressive only Asset disposal 600 met all the army’s ever- because this year’s transfer saw a 14 per and miscellaneous increasing demands. cent squeeze from the previous. Sources: Municipal Corporation of Greater Mumbai, Bloomberg With the Defence Research stated that the 62.5-tonne Arjun would cost ~37 crore and the first would follow up separately. Mumbai, the capital of the western state and Development Organisation was too heavy for roads and batch would roll out by 2015. This version would be desig- of Maharashtra faces a further crunch. Every year, Mumbai’s creaking infra- collects. A lot of taxation now takes place in (DRDO) awaiting a long-cleared bridges along the Pakistan bor- By June 2012, the DRDO nated Arjun Mark 1A. Centered on seven Arabian Sea islands that structure faces a huge risk from flash floods. the form of targeted levies on education, order for 118 Arjun MBTs, the der, and too wide to be trans- offered the Arjun for trials with After several months of Portuguese colonizers handed to the Yet such are the funding constraints that a health and sanitation, kept in full by the ministry of defence (MoD) ported by train. all the enhancements, except delay, Arjun Mark 1A trials were British in 1662, modern Mumbai has city of tycoons, bankers and movie stars — federal administration. A new bargain instead asked the Ordnance Under pressure from the one: a cannon-launched guided held in December 2018 and the expanded into independent India’s pul- who live alongside masses huddled in shan- between different levels of the government Factory Board (OFB) last MoD to order another 118 missile (CLGM) the army want- tank was found fit in all respects. sating trading and financial centre, a cos- tytowns — can allocate only ~900 crore of must change this. November to build 464 Arjuns, the army then demand- ed to fire through the Arjun’s The army’s trial team recom- mopolitan agglomeration of 26 million capital expenditure on storm drains, a fifth At 70 per cent of gross domestic product Russian-origin T-90 tanks at ed several capability enhance- main gun. mended that the Arjun Mark 1A people — twice as populous as of what the civic body will (GDP), India’s overall government debt — at the Heavy Vehicles Factory, ments in the tank to make it The DRDO had sourced the be inducted into service. business hubs like Hong Kong spend on employee pensions. all levels — is too high for an investment- Avadi (HVF). With each T-90 more effective. At a meeting of Lahat CLGM from Israel, but Incredibly, more than a year and Singapore combined. India’s richest metropolis grade sovereign. Without bumping up local costing about ~28 crore, the the MoD-led Arjun Steering that could strike targets later, the army has not yet The birthplace of Bollywood opens a window on the crip- capital spending, people’s incomes and order is worth an estimated Committee in 2010, the army between 2 and 5 kilometres placed an indent for 118 Arjun boasts the country’s priciest real pling lack of basic services in their ability to pay taxes and fees won’t rise ~13,000 crore. demanded an improved ver- (km) away. The army insisted Mark 1A. It has raised numer- estate, but the property market smaller cities, towns and vil- fast enough to reduce national debt. Weak The army continues to block sion of the tank, which would on being able to strike targets as ous issues — including ammu- is toast, in part because a shad- lages where 1.3 billion people national finances will leave India unpre- the indigenous Arjun tank even be called the Arjun Mark 2. close as 1.2 km. nition availability, non-avail- ow-banking meltdown choked live. New Delhi, the capital, is at pared to deal with climate change and epi- though, in a comparative trial, The Arjun Mark 2 was It pointed out that the ability of spares and low developers’ access to finance. With unsold least contained in a mini-state, which gives demics. The coronavirus isn’t a big conducted in the Rajasthan required to have 83 capability Arjun’s powerful main gun had indigenous content — to suc- homes piling up, Mumbai can’t earn much the city access to a more diversified resource headache for India, at least not yet. It’s the desert in March 2010, the Arjun enhancements, including 15 already proved its ability to cessfully avoid placing an order. from homeowners or builders. Up to pool, such as taxes on petroleum products. next outbreak that planners must worry proved itself equal to, or better major and 68 minor changes. destroy targets at ranges up to 2 Were an indent to be placed 34 per cent of the municipality’s recently But New Delhi’s air quality is foul. about. Setting aside more money for drains, than, the Russian T-90. Incredibly, given the army’s km. But the army insisted the today, it would still take HVF announced ~33,400 crore Budget will rely Chennai, the capital of Tamil Nadu, is sewage management and hospitals will bet- In the trial, one squadron (14 complaint that the tank was too CLGM should be usable against about 36 months to start deliv- on compensation. This was offered in 2017 running out of water. Software powerhouse ter protect citizens and economic assets. tanks) of Arjuns was pitted heavy, the new enhancements targets 1.2 km away. So, the ering completed Arjun tanks. by the federal government to get state and Bengaluru, which has lost its entire green- The money circulating in the economy against an equal number of T- would make the tank heavier DRDO began work on an The DRDO is confident it would municipalities to agree to scrap inefficient ery to urbanisation, punishes commuters because of municipal-level spending will 90s. Top army generals, who by another 6 tonnes. indigenous CLGM to meet develop the CLGM by then, so indirect taxes — in Mumbai’s case, a levy with the worst traffic congestion in the ease India’s fiscal crisis. witnessed the trial, admitted These included the fitment those specifications. those 118 tanks will actually be on merchandise entering the city for sale world. The solutions are known. The shal- Will it happen? Take Mumbai again. the Arjun performed superbly. on the tank of mine ploughs (1.6 By 2015, a series of trials had Arjun Mark 2, with full CLGM — in favour of a nationwide goods and low municipal bond markets must scale Shiv Sena, the party in control of the munic- Whether driving cross-country tonnes extra), explosive reac- validated the improvements capability. services tax (GST). up, but that will require cities to adopt ipal corporation since 1985, was a long-time over rugged sand dunes; or tive armour (1.5 tonnes), sus- the army demanded. Even the Asked whether there was GST was a major reform, but awkward- internationally acceptable accounting, cre- ally of Modi’s Bharatiya Janata Party until it accurately hitting targets with pension improvements (one CLGM’s laser designator was frustration over the lack of ly designed and poorly implemented. Its ate own sources of revenue, and bring down broke ranks last year. It now leads a coali- its powerful main gun; the tonne) and another 2 tonnes in tested and validated with Lahat orders, DRDO chairman failure weakened federal finances, though endemic corruption. The GST needs to be tion controlling the entire state. The Shiv Arjun established that it was a other areas. Having com- missiles. The DRDO asked for Satheesh Reddy told Business Modi at least has access to the central bank’s overhauled so that overall tax collection, Sena leader, Uddhav Thackeray, has hinted tank to reckon with. plained earlier that a 62.5 tonne production order, promising to Standard: “No, we cannot get printing press. A bigger challenge has which Team Modi expects to rise by 12 per at pulling the plug on a Japanese-funded Yet, the army refused to Arjun tank was too heavy, the develop and supply the indige- frustrated. We are very positive. opened up at the subnational level. As cent next fiscal year, doesn’t repeat this high-speed train link between Mumbai and order more Arjun tanks, beyond army signed off on a six-tonne nous missile on priority. The user trials for the Mark 1A Mumbai real-estate analyst Vishal Bhargava year’s paltry 4 per cent increase. Ahmedabad in Modi’s home state, Gujarat, the 124 it had already inducted weight increase to 68.5 tonnes. However, the army dilly- have been completed in notes, the city’s compensation deal ends As the pie grows, distribution must also which is promoting a Mumbai-rivaling into service. Army insiders say In August 2011, the MoD dallied for three years, until December 2018 and we have in 2022. Its revenue will fall to what it was a be fair. A commission that sets the formu- international financial center. For India’s there is an ingrained belief that announced it had “cleared the March 2018, when it was agreed even developed the ammuni- decade ago, only facing higher costs. The la for resource-sharing is proposing to leave fiscal balance to regain its footing, the eco- Russian tanks are better than proposal for placement of indent that the next batch of Arjuns tion now. I am sure that the authority is already dipping into reserves to the states’ portion broadly unchanged at 41 nomics of public spending will have to Indian ones. for 124 MBT Arjun Mark 2”. would be supplied without mis- Indian Army will soon be meet pension obligations; a further income per cent. But as I said, in reality, states are become more local. Politics already is. However, it was officially It said each enhanced Arjun sile firing capability, which inducting the Arjun Mark 1A.” shock will be a disaster. getting less than a third of what New Delhi BLOOMBERG

HEALTH 1 >

FIT & PROPER Scientists questioning Your weekly health guide Study: Doctors know little about All about cervical cancer helping sex-trafficking victims panglolin-coronavirus cells early and prevent the development of cervical can- link, says new study cer. Widespread use of the Pap VISHWADHA CHANDER of trafficking victimisation, test led to dramatic declines in 8 February with five of these also dis- KATE KELLAND, TOM DALY University of Cambridge, deaths from cervical cancer. cussing trauma and how doc- 8 February said the research was far The HPV vaccine can reduce octors are in a unique tors should speak to victims. from robust. risk of cervical cancer as well. position to identify A comprehensive curricu- Independent scientists ques- “The evidence for the HPV causes most cervical can- D and help victims of sex lum on human trafficking tioned research on Friday that potential involvement of pan- cers. Adolescents are not get- trafficking, but little is taught should ideally touch upon the suggested that the outbreak of golins in the outbreak has not NANDITA PALSHETKAR ting HPV vaccination as often in medical school about this definition of trafficking, iden- coronavirus disease spreading been published, other than IVF & Infertility specialist as other recommended vac- issue, a review paper suggests. tification, intervention, treat- from China might have passed by a university press release. cines, even though it is safe About 400,000 people in ment, referral to services, safe- from bats to humans through This is not scientific evi- Cervical cancer has become and effective. Look for these the US are estimated to be ty considerations, legal issues the illegal traffic of pangolins. dence,” he said. one of the major causes of signs to know if you have cervi- affected by human trafficking, and prevention, Talbott said. South China Agricultural “Simply reporting detec- death in women. According to cal cancer or not: and research indicates that up The biggest challenge for University, which tion of viral RNA WHO’s Cancer Report, women Abnormal bleeding that to 88 per cent of them have medical students is the lack of said it had led the with sequence simi- suffer more from cervix, breast includes: bleeding between reg- seen a health care professional awareness, she added. “So research, said on Pangolins are larity of more than and ovarian cancers in India. It ular menstrual periods, bleed- for treatment during their many of my peers had either its website that the one of Asia’s 99 per cent is not is usually not possible to know ing after sexual intercourse, exploitation, the authors write who worked with her faculty to ing, didn’t target medical stu- never heard of trafficking or “discovery will be most trafficked sufficient. Could why a person develops cancer bleeding after menopause, in the American Journal of develop coursework on the top- dents or were opinion pieces, had no idea about the magni- of great signifi- mammals these results have and another doesn't. However, bleeding after douching and Preventive Medicine. ic, said in an email. they were left with tude of the issue and how often cance for the pre- despite laws been caused by con- certain lifestyle choices can bleeding after a pelvic exam But there isn’t enough dis- To assess what just six. After adding victims interact with health- vention and con- banning their tamination from a reduce the chances of con- Pelvic pain that is not relat- cussion or education on the role educational materials The biggest in five papers discov- care providers.” trol of the origin trade highly infected envi- tracting cancer, including ed to menstrual cycle doctors can play in helping do exist for medical challenge for ered in other search- While awareness is grow- (of the new virus)”. ronment?” cervical cancer. Unusual or heavy dis- these women, children and students, Talbott and medical es, they had a total of ing, it’s slow compared to China’s official Xinhua Pangolins are one of Asia’s Cervix of a woman con- charge that is watery, thick or men, lead author Jennifer colleagues searched students is 11 educational growth in reported rates of traf- news agency reported that the most trafficked mammals, nects her uterus with her vagi- foul smelling Talbott, a third-year medical medical journal data- the lack of resources on sex traf- ficking, the authors point out. genome sequence of the novel despite laws banning the trade, na. Cervical cancer occurs Pain during urination as student at the Mayo Clinic Alix bases, Google Scholar awareness ficking directed at “Human trafficking is perhaps coronavirus strain separated because their meat is consid- when abnormal or precancer- well as increased urinary fre- School of Medicine in and other resources medical students. coming to light more now from pangolins in the study ered a delicacy in countries ous cells start to develop here. quency Scottsdale, Arizona, told for terms including “human None of the resources was because health care profes- was 99 per cent identical to such as China and their scales The human cervix has two These symptoms can also Reuters Health. trafficking,” “sex traffic,” “sex solely about sex trafficking, sionals and the public are talk- that from infected people. It are used in traditional medi- parts, ectocervix and endo- be a result of some other condi- “As future healthcare violence,” “sex work,” “educa- and less than half addressed ing about it more,” said Asim said the research had found cine. The outbreak of disease cervix. The former is pink in tion, so please see your doctor to providers, it’s important we tion,” “medical” and “under- legal considerations and how Shah, professor and executive pangolins — the world’s only caused by the new coronavirus, color (if healthy) and is covered know what it is. learn about trafficking early, graduate”. to prevent human trafficking. vice chair of psychiatry at the scaly mammals — to be “the which has killed 636 people in in flat thin squamous cells. The Girls who started having sex instead of five or ten years into They uncovered 64 schol- Eight resources discussed vic- Baylor College of Medicine in most likely intermediate host.” mainland China, is believed to latter is the cervical canal and before the age of 16 and before our careers when maybe a arly articles. But after exclud- tims’ treatment needs, pro- Houston, who wasn’t involved But James Wood, head of have started in a market in the is made up of columnar cells. their period, those who have dozen victims have slipped ing papers that didn’t talk vided screening tools and dis- in the review. the veterinary medicine city of Wuhan that also sold live The area where endocervix been taking birth control pills past us unnoticed,” Talbott, about human or sex traffick- cussed health consequences REUTERS department at Britain’s wild animals. REUTERS and ectocervix meet is the for more than five years, women transformation zone, the most with weak immunity, women likely region where abnormal who have multiple sexual part- and precancerous cells ners and women with existing can develop. STD’s are at a higher risk of con- The leading cause of cer- tracting cervical cancer. Teens who need to lose weight should quit staying up late vical cancer is Human Other than Pap and HPV Papillomavirus (HPV), found tests, women can opt for LISA RAPAPORT per day than usual. Then, they loss, Malacara said by email. Huang, who wasn’t involved in they slept. who wasn’t involved in the in about 99 per cent of cervi- colonoscopy to check for cer- 8 February chose 25 teens at random to fol- “Sleep can influence the the study, said by email. The study also didn’t look study, said by email. cal cancer cases. There are vical cancer. In this case, the low a personalised sleep plan secretion of hormones that reg- “Sufficient sleep can also at exercise, or at what teens ate. Parents may need to over 100 different types of doctor will stain your cervix Obese teens who diet to lose designed to help them get up to ulate appetite, (reducing) crav- reduce stress, which is known In theory, however, better- encourage teens to change HPV which are considered with a harmless dye or acetic weight may have more suc- an extra hour of rest at night, ing for food and (making peo- to favour weight gain.” rested adolescents might be their evening routines, said low risk and do not result in acid to improve visibility of cess if they also focus on get- while the other 27 kept to their ple) more likely to be successful Beyond its small size, more conscious about choos- Kristen Knutson, a researcher cervical cancer. The high-risk cells. After that the doctor will ting enough rest, a small usual sleep routines. in cutting calories,” another limitation ing healthier foods and less like- at Northwestern University in cancer types are HPV-16 and use a microscope to magnify study suggests. After four weeks, teens on said Tianyi Huang of After 4 weeks, of the study is that ly to succumb to the tempta- Chicago who wasn’t involved HPV-18 and if a woman has your cervix by 8 to 15 times to “Sleep deprivation may be sleep plans increased their Brigham and teens on sleep researchers didn’t tion of high-calorie, high-carb in the study. persistent HPV infection look for unusual cells. associated with increased average sleep time by about 1.2 Women’s Hospital plans increased follow the youth sweets and junk foods, said “One way to improve the then she must see a doctor One more method is the caloric intake, and decreased hours a night and lost an aver- and Harvard Medical their average for longer to deter- Anna Rangan of the University sleep of teens is to avoid bright immediately as they are at a Loop electrosurgical excision physical activity, resulting in age of 2.1 kilograms (4.6 School in Boston. sleep time by mine whether of Sydney in Australia. light at night, particularly greater risk of developing procedure (LEEP) wherein the obesity,” said senior study pounds). Without the sleep “More sleep will about 1.2 hours sleep might impact “Shorter sleep duration right before bedtime,” cervical cell abnormalities. doctor uses an electrified loop of author Juan Manuel Malacara plans, teens only increased make people feel less a night and lost their odds of increases the time available for Knutson said by email. “This Precancerous cervical cells wire to take a sample tissue of of the University of Guanajuato their sleep by about a half hour, sleepy or fatigued an average of achieving sustain- eating, especially in the includes light from smart do not cause any prominent your cervix for a better look. in Leon, Mexico. on average, and they only lost during the day, then 2.1 kilograms able weight loss. evening where sedentary activ- phones and tablets — symptoms, which is why regu- If you don't treat an HPV To see if extra sleep might an average of 1.2 kg (2.6 lb). people are more like- Researchers also ities, such as watching televi- although getting teens to put lar screening through Pap and infection it can cause the cells to make it easier to lose weight, The results suggest that ly to work out more, leading to relied on teens to report sleep sion, and snacking on highly these away at night may be HPV tests is recommended. turn into cancer by forming into researchers asked 52 obese promoting extra sleep may help higher energy expenditure, time in diaries and didn’t palatable and energy-dense challenging.” They can catch precancerous a tumour over time. teens to eat 500 fewer calories dieters succeed with weight which is good for weight loss,” objectively measure how much foods are common,” Rangan, REUTERS MUMBAI | 9 FEBRUARY 2020 IN DEPTH 7 . < The day terror struck Parliament House Nearly 20 years ago, when a suicide squad stormed the complex, Ajai Raj Sharmawas among the efore the year 2001 came to an mobile phones and some police uni- end, an unprecedented crime first to appear on the scene. In a memoir, the former Delhi Police Commissioner recalls how the events forms. They prepared fake ID cards and Btook place, which shook the unfolded that fateful day a parking sticker for their vehicle for nation and showed the world the entering the Parliament premises. On 11 extent to which terrorism had grown. December, they purchased a second- On 13 December, I received a call. hand white ambassador car from Karol Something unthinkable had hap- Bagh. They fitted this car with tinted pened. Terrorists had entered the glass and a red light. The seller of this Parliament premises and were firing car had identified it when visuals of the incessantly. I had barely kept the car were displayed by news channels phone down, when the control room after the attack. This particular seller also confirmed that firing was taking knew one of the Delhi police officers place in the Parliament premises. and informed him about the sale of this There was no time to think and plan. I car on the date of the incident. The ran out of my office and headed straight same was conveyed to one of the ACPs to Parliament. On my way, I called the and that was how the information control room and directed it to ensure reached me. But by that time the inci- that a couple of armed companies dent had already taken place. reached the Parliament immediately. I On 13 December, all of them met in also issued orders to certain select offi- Gandhi Vihar. Mohammad, the leader cers, particularly those of the Special of the fidayeen group, handed over a Cell, to reach the scene of the shootout. laptop and ten lakh rupees to Afzal The situation was dire. As the Guru. He told him that in case they Parliament was in session, the prime were killed in their mission, the laptop minister, along with all the members of should be handed over to Ghazi Baba his cabinet and the members of and the money should be kept with Parliament, were present in the House. Afzal for their future expenses. Heavily I did not even want to imagine the colos- armed, all five militants then left for sal damage the terrorists could poten- the Parliament in the car they had pur- tially cause. chased. It is indeed surprising how eas- As I was approaching the ily they entered the Parliament cam- Parliament, I could still hear some shots pus, by hoodwinking the Watch and being fired. When I reached the scene, a Ward staff of the Parliament. Once number of dead bodies of terrorists, inside the campus, the militants drove civilians and the police alike, lay scat- fast, anxious to achieve their mission. tered at different places in the complex. Unfortunately, they drove onto a wrong I also observed that near the dead bod- road at the end of which a huge iron ies of the terrorists, weapons like AK- gate was chained and locked perma- 47 rifles, 9 mm pistols and grenades nently. Realizing their mistake, they were scattered. Their mobile phones, became nervous. They tried to reverse which were to provide us valuable infor- at high speed, but in the process mation, were there too. I deputed a sen- banged against the escort vehicle in the ior officer to take charge of the scene of motorcade of the vice president of crime and ensure that all evidence and India. The security persons sitting in clues available at the scene were pre- the escort vehicle jumped out and tried served. Immediately, a cordon was to stop the ambassador. This resulted in thrown around the area and a very close a shootout between them. inspection of everything available on Unfortunately, the securitymen were the spot was carried out. I entrusted at a severe disadvantage, as they were Rajbir Singh, the ACP of the Special Cell, equipped with only close quarter battle to at once take over the investigation of the information obtained from these December, a meeting had According to him, Tariq to Delhi and arranged a safe hideout weapons, mostly 9 mm pistols. On the the case and report the progress to me mobiles, four associates of the slain ter- taken place in the house of motivated him to join JeM. for him in Mukherjee Nagar. Leaving other hand, the militants were using by evening. rorists, namely Mohammad Afzal, Shaukat, in which Shaukat He took him to Ghazi Baba, Mohammad at the hideout, AK-47 rifles. Fortunately, the periph- Thereafter, I went inside the Shaukat Hussain Guru, Syed Abdul Hussain and Mohammad who had his base in Abu Mohammad Afzal, after a week, ery of the compound was being guard- Parliament and met the home minis- Rehman Gilani and Navjot Sandhu, Afzal were present along Hills, Pahalgam. Ghazi Baba returned to Srinagar. Shaukat Hussain ed by a company of the Central Reserve ter, who was present with the Speaker of wife of Shaukat Hussain Guru, all with the terrorists. In this informed Mohammad Afzal arranged another safe hideout in Police Force. On witnessing the the House in his chamber. Both belonging to Jaish-e-Mohammed meeting, they discussed a that under pressure from Gandhi Vihar. On returning to Srinagar, shootout inside the campus, they began appeared to be in a state of shock. I (JeM), were arrested. A large number of plan to carry out an attack the ISI chief, both Masood Mohammad Afzal met Tariq again. firing with long-range rifles. The secu- assured them that within a couple of explosives and incriminating materi- on the Parliament House. Azhar of JeM and Zaki-ur- Tariq introduced Mohammad Afzal to rity men fought bravely but four of days, we would be able to trace the cul- als were recovered from their posses- After her arrest, Navjot Rehman Lakhvi of LeT had yet another two JeM militants, Raja and them fell to the bullets of the militants. prits and find out who was behind this sions. The first three belonged to Sandhu disclosed that after joined forces. The Pak ISI Haider, both of whom were Pakistani Five terrorists, all Pakistani nationals, incident. We requested all members of Jammu and Kashmir. Mohammad the incident of 13 December BITING THE BULLET: had issued directions to nationals. In November 2001, Afzal were also killed in this fierce shootout. Parliament to leave for their respective Afzal in his interrogation disclosed that 2001, Shaukat Hussain and Memoirs of a them, to carry out a fiday- brought them to Delhi and took them to Besides them, one unfortunate lady residences and helped them with nec- he had crossed over to Pakistan and Mohammad Afzal had Police Officer een attack in Delhi. Ghazi the hideout in Gandhi Vihar. After a constable of the CRPF, two Watch and essary transport. Once Parliament had had undergone two and a half months immediately left in a truck Author: Baba directed Mohammad week, Mohammad Afzal returned to Ward men on the rolls of the Parliament been vacated, to ensure that no terrorist of training at a training camp in PoK, for Srinagar. This informa- Ajai Raj Sharma Afzal to go back to Delhi and Srinagar and met Tariq again. He was and an innocent gardener were also remained in hiding on the premises, an which was run by the Pak ISI. After tion was given to J&K Police, set up a base. Consequently, introduced by Tariq to two more mili- killed. Four security men lost their lives, intensive combing of the Parliament completing his training, the handlers who located the truck and Published: Rupa Mohammad Afzal came to tants-another Raja and Hamza (both but they not only saved the day for us building and its surrounding area was infiltrated him back into India. apprehended both Price: ~495 Delhi. He motivated Pakistani). They were brought to Delhi but also helped the government from a organized. Investigations revealed that the ter- Mohammad Afzal and Shaukat Hussain and Syed in the beginning of the first week of lot of embarrassment and humiliation. The next two days were stressful, to rorists who had been killed had local Shaukat Hussain. A laptop Abdul Rehman Gilani to be December 2001. They brought with A big service was done by the staff of say the least. We were besieged by calls support. Syed Abdul Rehman Gilani, a and ten lakh rupees were recovered a part of the conspiracy for conducting them AK rifles, pistols, a grenade the Parliament House, when they from the press asking all sorts of ques- lecturer of Arabic in Zakir Hussain from their possession. the fidayeen attack. launcher, grenades, detonators, quickly closed the big wooden doors tions about the investigation of the case. College, had been in touch with them. On being subjected to intensive In the month of October 2001, Ghazi radioactive devices and wireless sets- leading into the Parliament. Even The Special Cell team and the central He, along with Mohammad Afzal and interrogation, Mohammad Afzal dis- Baba introduced Mohammad Afzal to hidden in their baggage. today, when I think about this incident, intelligence agencies jointly launched Shaukat Hussain Guru, had been mak- closed that he used to visit Delhi for another JeM militant. His name was In order to reconnoitre the I shudder to think of the consequences, an intensive investigation into the ing necessary arrangements for them business purposes regularly. In Mohammad. He was also a Pak nation- Parliament House area, Afzal pur- especially its international ramifica- whole incident. The sim cards of the in Delhi. It emerged that Mohammad February 2001, he was contacted by al. Mohammad Afzal was informed that chased a black Yamaha motorcycle. tions, had the terrorists succeeded in mobiles of the terrorists contained valu- Afzal had been very active and was the Tariq, a close associate of Ghazi Baba, a Mohammad would lead the proposed The Parliament House and the sur- their mission. able information and helped to kick- main coordinator of JeM in Delhi. He Pakistani national, who was the fidayeen attack in Delhi. Thus, rounding areas were reconnoitred sev- start the investigation. On the basis of further stated that in the first week of supreme commander of JeM in India. Mohammad Afzal brought Mohammad eral times. They also purchased five Excerpted with permission from Rupa

IMO Gender budgeting takes a big leap in India chaotic Delhi? #viewpoint Harish Bijoor@harishbijoor Finance Commission’s progressive/equitable. This progres- India, unless we “engender” the IGFT iTHINK:The #Delhi election just concluded, is quite sivity analysis is significant to know mechanisms, the picture remains the election for a city with city issues dominating! decision to incorporate whether TFR is a better criterion than partial. With the bold decision by the Civic issues included! Quite like #BBMP Elections the other in capturing the “demo- 15th FC to integrate gender criterion 2020 in #Bengaluru ahead! So lets see if “demographic graphic performance”. in general purpose transfers, a great #BijliPaaniSadak dominates as it must! It is interesting to recall here that in leap forward is thus made. #DelhiElection performance” in fiscal United Nations Gender Inequality In addition to incorporating gen- transfers is laudable Index (GII) which has been published der criteria in tax transfer formula, I Prashant Bhushan@pbhushan1 every year since 2010, adolescent fer- also urge 15th FC to design specific Why does Shah say that Delhi election results will tility rate is incorporated as one of the purpose transfers to strengthen the shock everyone? It means he knows that everyone LEKHA S CHAKRABORTY parameters to reflect the “reproduc- gender budgeting initiatives at the sub- expects AAP to win and BJP to lose. Is he planning tive health” gender dimension. That national levels, including the third tier. to pull a rabbit out of the hat by EVM tampering? India has made history as the first being said, it needs to be mentioned With the advent of fiscal decentralisa- Or is there some more sinister plan afoot? country ever to integrate gender in the that it is not plausible to incorporate tion aftermath 73rd and 74th DONALD TRUMP’S IMPEACHMENT intergovernmental fiscal transfers more demographic variables in the Constitutional Amendments and the ACQUITTAL Rana Ayyub@RanaAyyub (IGFT) formula. The 15th Finance Commission’s already complex tax feminisation of local governance in Elizabeth Warren@ewarren Go Delhi, the future of this country is in your Commission has taken this bold deci- transfer formula. What I mean is the India (33 per cent reservation for We must rework our justice system from what we hands. sion — during its transition to use the inclusion of UN’s “gender inequality women), the imperative for gender criminalize at the front end, to how we help population data from 2011 instead of index” in the tax transfer formula — equity will be even stronger if the spe- people come back to their communities. Barkha Dutt@BDUTT 1971— not to penalise the states with The demographic pattern of 0-6 age instead of one single indicator — may cific purpose transfers can facilitate But we can't say criminal justice is the only time Well done Delhi. Voter turnout surges to 67 better demographic performance. group can capture the gender not result in the intended results, if integrating the revealed preferences we want to talk about race specifically. We must percent. No decline at all from 2015. Hence we, While social values and ethics discrimination “even before birth” the variables included in the index (“voice”) of women in local level pub- start having race-conscious laws. #DemDebate dilliwallahs, remain as enthusiastic as ever. reflected in the demographic per- may “neutralise” each other. lic expenditure decisions. formance of a state cannot be changed ics, there has been a growing recogni- The genesis of these debates on Identifying transformative financ- Sec. Wilbur Ross@SecretaryRoss Ashok Swain@ashoswai by fiscal fiats alone, particularly when tion over the years to the plausibility of how to translate the gender commit- ing for gender equity is the clause 5c of I am proud of this Administration and all that Don’t get excited- BJP not doing well in Delhi is patriarchy and prejudices run deep, a incorporating gender into tax transfer ments into fiscal commitments can Sustainable Development Goals President @realDonaldTrump part of a 5 yrs pattern. Except in UP & Assam (states proactive approach by a high consti- formula in India. Withthe monotonous be traced to “gender budgeting” (SDGs). The Niti Aayog’s recent report has accomplished on behalf of the American with sizable Muslim population), BJP has not done tutional body like the Finance decline in the 0-6 sex ratioin India, it experiments—the analysis of the on SDGs has shown the ranking of people. The President has produced real, well in state elections. But, again I repeat, Modi is Commission (FC) has always been was believed that there can be no valid budgets through a “gender lens”—as states based on gender equality (SDG measurable results on economic growth, jobs, and unbeatable as long as he can fool India on called for. This is especially when these objection to using FC transfers for gen- a tool of accountability. The pio- Goal 5) and Kashmir was on the top in trade. Muslims, Kashmir & Pakistan! prejudices — reflected in the demo- der equity. I argued this in my paper, neering study by the National terms of gender equality. graphic patterns — are blatantly Determining Gender Equity in Fiscal Institute of Public Finance and Policy Ethiopia, too, is in the process of Sam Stein@samstein CORONAVIRUS SCARE IN CHINA oppressive. Federalism: Analytical Issues and led to developing analytical matri- integrating gender in IGFT. In Quite the week for Trump between the acquittal, Danyal Gilani@DanyalGilani Against this backdrop, the 15th Empirical Evidence from India, pub- ces to “engender” the budgets. In Ethiopia, the process has been initi- the improving poll numbers and now this solid Shanghai is empty due to #coronavirus scare. No Finance Commission’s decision to give lished by the Levy Economics Institute 2004-05, through accepting the rec- ated by House of Federations (Senate) jobs report. Arguably the best position he's been one to be seen at a public place in one of the most 12.5 per cent weightage to “demo- in 2010. What I suggested was to use a ommendations of “Classification of and the Terms of Reference (TOR) was in for re-election since his election. densely populated cities of the world. ?? graphic performance” is laudable. The simple method for introducing some Budgetary Transactions” Committee moved in Parliament for public hear- Commission has decided to use total weight in favour of the female popula- under the Chairmanship of Ashok ing. Subsequently, a majority was DELHI ASSEMBLY ELECTIONS Harsh Goenka@hvgoenka fertility rate (TFR)— instead of other tion of the states in the fiscal devolu- Lahiri, then chief economic advisor, secured in the Senate for gender-inte- Yogendra Yadav@_YogendraYadav In China it is suggested not to touch a door knob or plausible indicators like female popu- tion formula. I further argued that the (where I was a Member to address grated TOR and the country is waiting "As a citizen of this country, I sincerely hope and elevator buttons . Solution for the elevator lation of the states or the sex ratio of 0- message would be even stronger and the TORrelate to gender budgeting), for the “proclamation” by the Senate pray that politics of hatred is defeated (in Delhi). I #coronavirus 6 age group — as an indicator of more appropriate if the number of girls institutionalising gender budgeting to make it a reality in their forthcom- have my opinions about AAP and its leadership — “demographic performance”. The 15th in the 0-6 age cohort— is adopted as became a reality in India. As a prel- ing Fiscal Commission. NIPFP has and these are no secret — but I cannot let it cloud Kevin Rudd@MrKRudd FC report tabled in Parliament on the basis for determining the states’ ude to this, the Economic Survey in worked in close association with my judgement ... or to be used by the BJP..." I’ve been back home in Oz for a few days. I come February 1 noted that the reduction of relative shares of the amount to be dis- 2000-01 also, for the first time ever, House of Federation (Senate), back each Feb for anniversary of the Apology. What TFR — the average number of chil- bursed by applying the allotted weight. carried a chapter on “gender”, draw- Government of Ethiopia and the bhupendra chaubey@bhupendrachaube I find striking is the level of complacency here dren that would be born to a woman The demographic pattern of 0-6 age ing the gender diagnosis from NIPFP Forum of Federation in this process of Now that the election is over, can about the potential impact on the global and over her lifetime —also reflects better group can also capture the gender dis- study. However, integrating gender integrating gender in fiscal transfers #ShaheenBaghProtest really vacate the area? Can Australian economy given the impact of the virus performance in maternal and child crimination “even before birth”. in macroeconomic policies has large- in Ethiopia. that road be opened? And can we have slightly less on China. health as well as education, and it It remains an empirical question ly confined to the domain of public reflects quality of human capital. whether incorporating TFR or a sex expenditure at the Centre and state The writer is a professor at the National Given the disturbing demograph- ratio (0-6) makes FC transfers more levels. In a fiscal federalism like Institute of Public Finance and Policy 8 WORLD MUMBAI | 9 FEBRUARY 2020 1 > American dies of coronavirus in Uber and Lyft on different roads in China as toll set to surpass SARS search of profit RYAN WOO & COLIN QIAN cruise liner off Japan tested positive Beijing, 8 February for coronavirus, bringing the total number of confirmed cases from TINA BELLON n American became the the ship to 64, Japan's health min- New York, 8 February first confirmed non-Chin- istry said. A ese victim of the new coro- Thailand reported seven new Uber and Lyft, the two leading US ride- navirus, US officials said on Satur- cases, including three Thais and hailing companies, are on divergent day, and a Japanese man also died four Chinese, bringing the total paths as Uber pours money into money- with symptoms consistent with the reported in the country to 32, losing side businesses while smaller rival disease, as the epidemic looked set among the world's highest number Lyft focuses on moving people around. to pass the death toll from SARS. of infections outside of China. Uber shares shot up nine per cent on The 60-year old US citizen Taiwan and Hong Kong urged Friday after the company said on died on February 6 in Wuhan, the residents not to hoard goods such Thursday it could achieve a measure of epicentre of the virus outbreak in as toilet paper amid signs of panic company-wide profitability in the fourth Lyft has more quickly found ways to the central Chinese province of buying, and the World Health Org- quarter of 2020, a year ahead of a previ- retain high-paying repeat riders Hubei, a US embassy spokesman anization chief warned of world- ous target. That measure excludes across its operation via a single said in Beijing. wide shortages of medical gowns, expenses for stock-based compensation subscription model ISTOCK "We offer our sincerest condo- masks and other protective equip- and other items. Uber still expects to lences to the family on their loss," ment. Royal Caribbean Cruises Ltd lose more than $1 billion for all of 2020. EBITDA loss of $777 million in the last the spokesman told Reuters. "Out of on Friday banned "any guests hold- Uber and Lyft, both based in San two quarters of 2019, the two quarters the respect for the family's privacy, ing Chinese, Hong Kong or Macau Francisco, are ride hailing's odd couple. for which it broke out that metric. we have no further comment." A passports, regardless of when they Uber is much larger, with $3.8 billion in Most major analysts still prefer shares Japanese in his 60s and hospital- were there last" from boarding the revenues for the first nine months of of Uber. Its size, the profitability of its ised with pneumonia in Wuhan, An employee restocks rolls of toilet paper at a market, following the outbreak of the novel coronavirus, in company's ships. 2019 compared to $956 million for Lyft. ride-hailing segment and its ability to also died after suffering symptoms Hong Kong on Saturday REUTERS Having already decided to sus- At almost $69 billion, Uber's market val- withstand regional downturns or regu- consistent with the new corona- pend most flights from Monday uation is nearly five times that of Lyft's — latory pressure in a single market made virus, Japan's foreign ministry said. cial reports show there are more Beijing's communist leadership slowing economy has been heavy, between Taiwan to China, Taiwan’s and well ahead of automaker General it a safer long-term investment, said But owing to difficulties in diag- than 330 cases outside China, in 27 has sealed off cities, cancelled with Goldman Sachs cutting its government said it would also sus- Motors. Uber operates in more markets Angelo Zino, analyst at CFRA. nosing the disease, the cause of countries and regions. flights and closed factories to con- first-quarter GDP growth target to pend all direct passenger and around the world, although it has But some analysts said Lyft is a less- death was given as viral pneumo- "It is hard to say how lethal this tain the epidemic, a response that four per cent from 5.6 per cent pre- freight shipping. clashed with regulators in London and risky bet. "We prefer Lyft because it fo- nia, the ministry said, citing Chi- novel coronavirus infection is," Pro- has had ripple effects globally for viously and saying a deeper hit is Hundreds of foreigners have Germany and struggled in some Asian cuses on the most profitable business in nese medical authorities. fessor Allen Cheng, an infectious financial markets and businesses possible. been evacuated out of Wuhan over markets. Lyft focuses on North America. North America, the largest rides market," As of noon on Thursday, 17 for- diseases expert at Monash Uni- dependent on the world's second- "It's certainly not going to be a the past two weeks. A second evac- Lyft has more quickly developed Cascend Securities analyst Eric Ross eigners were being treated for the versity in Melbourne, told Reuters. biggest economy. return to normal next week," said uation plane to airlift Australians ways to retain high-paying repeat riders said. Uber and Lyft did not comment. disease in quarantine in China, "While the crude mortality Saturday marked the final day Julian Evans-Pritchard, senior out of Wuhan was delayed after across its entire operation via a single Lyft is reporting fourth quarter earn- according to the latest govern- appears to be around two per cent, of the Lunar New Year holiday, a China economist at Capital China did not give it clearance to subscription model it launched in Oct- ings on February 11. In October it told ment figures. there are likely to be many people day usually characterised by fami- Economics in Singapore. land, Australian officials said on ober. Uber on Thursday told investors investors it would be adjusted EBITDA The death toll in mainland who have been infected that ly gatherings, fireworks, and the "The longer this disruption con- Saturday. 2020 would be the "year of subscrip- profitable by the end of 2021. Analysts China rose by 86 to 722 on Saturday, haven't been tested ... We probably lighting of lanterns. tinues the higher the risk it affects tions" when it plans to combine its loy- said they did not expect Lyft to move its according to authorities, and is poi- won't know the true case fatality The Chinese economy will sput- employment and the higher the Shanghai to help Tesla alty programmes across rides and food profit target. sed to pass the 774 deaths recorded for some time yet." ter towards normal on Monday, risk of a much bigger hit on the resume production delivery into a single plan. Lyft has integrated public transit globally during the 2002-2003 pan- Most of the deaths in China although many workplaces will economy," he said. US electric carmaker Tesla's fac- Uber offers a cross-platform points information into its app for seven US demic of Severe Acute Respiratory have occurred in and around remain closed and many white-col- Hong Kong on Saturday was tory in China's financial hub of rewards programme and in 2018 launc- cities in the hopes of turning its app into Syndrome (SARS), another coron- Wuhan. Hubei officials on Saturday lar workers will continue to work introducing a two-week quarantine Shanghai will resume production hed a monthly subscription that protects a single transportation platform. Uber avirus that jumped from animals reported 81 new deaths, 67 of those from home. for all people arriving from the on Monday with assistance to riders against surge pricing because of tr- has integrated transit information of to humans in China. in Wuhan, a city in virtual lock- Apple said it was working to mainland, or who have been there help it cope with a spreading epi- affic or weather, available in 40 US cities. eight US cities and allows customers in During the SARS outbreak down. Across mainland China, the reopen its China corporate offices during the previous 14 days. demic of coronavirus, a Shanghai Uber's ride-hailing business, which Las Vegas and Denver to purchase pub- between November 2002 and July number of outstanding cases stood and call centres next week, and was While China is bearing the government official said on generates around three quarters of its lic transit tickets through its app. 2003, the number of reported cas- at 31,774. making preparations to reopen brunt of the virus, anxiety levels Saturday. revenue, is profitable right now. Uber's Dan Morgan, portfolio manager at es was 8,098, suggesting a far low- News of the death on Friday of retail stores there. are spiking across Asia, with Japan Many factories across China other operations are dragging down the Synovus Trust, said Uber should focus er transmission rate than the lat- Li Wenliang, a doctor who was rep- But Chinese authorities have alarmed by the rising number of shut in late January for the Lunar company's bottom line. Over the past on what it does best — connecting cus- est coronavirus, but a higher rimanded by police for raising the blocked a plan by Apple supplier cases aboard a quarantined cruise New Year holiday that was origi- five years, Uber has built out its food- tomers through its app — and ditch mortality rate. alarm about the new coronavirus, Foxconn to resume production ship, major foreign companies nally due to end on January 30 delivery business Eats, developed self- efforts to develop its own self-driving Two deaths have been reported sparked sorrow and outrage on from February 10 over concerns pulling out of an international air- but which was extended in a bid driving cars, worked on long-haul truck- cars or passenger drone technology. outside of mainland China — in Chinese social media and rekin- about the spread of the virus, show in Singapore, and Thailand to contain the spread of the new ing operations and even on commercial "If you're losing as much money as Hong Kong and the Philippines. dled memories of how Beijing was Japan’s Nikkei business daily losing money as Chinese tourists flu-like virus that has killed more passenger drone shuttles. Uber, it makes sense to leave those busi- Both victims were Chinese nation- slow to tell the world about the reported on Saturday. stay home. than 700 people. All of those businesses are money nesses to other companies who have the als. A Reuters count based on offi- SARS outbreak. The toll on China's already- Another three people on the REUTERS losers. Uber Eats recorded an adjusted competency," Morgan said. REUTERS Bezos unloads $4 bn of UK foreign secretary wants ‘Drug’ dealer threat Amazon stock in a week to Lisbon tourism BLOOMBERG Japan trade deal this year REUTERS 8 February Lisbon, 8 February REUTERS TIM KELLY about this and it will be scie- Jeff Bezos continued his selling Tokyo, 8 February nce led," Raab told Reuters Whispering "Hashish? Cocaine?", street sellers are offering unsus- spree. when asked if Britain would pecting tourists in Lisbon's centre "drugs" which police say are Amazon.com’s founder and British Foreign Secretary agree to Motegi's request. often bay leaves, flour or ground paracetamol. chief executive officer disposed Dominic Raab said he wants Raab also sought to ease Locals in Lisbon's historic Santa Maria Maior district say the of two million shares in the past to begin talks with Japan with- Japanese concern that the EU fake drugs phenomenon is getting worse, worrying police and week, collecting more than $4 Bezos still owns about 11% of in weeks to conclude a trade exit could result in trade fric- business owners who fear tourists could start to steer clear of the billion, according to regulatory Amazon, worth $115.5 billion deal this year, after a meeting tion with the rest of Europe. Portuguese capital's bustling centre. filings. His latest sales were dis- with Japanese counterpart Japanese manufacturers such "Everyone on my tours gets asked if they want drugs," closed on Friday as the compa- ember and reportedly set a record Toshimitsu Motegi, who as Nissan Motor built plants Maarten, a Belgian tour guide working in Lisbon, said. "Some just ny’s stock hit fresh highs. for artist Ed Ruscha at a Christie’s asked Britain to drop in Britain because it offered a laugh, but others don't like it at all." Portugal, which has long been The transactions are part of a auction the same month with a European Union food import convenient gateway to the EU. popular for its beaches, historic sites and golf courses, has become pre-arranged trading plan. An $52.5 million purchase of “Hurt- restrictions imposed after the Dominic Raab sought to ease Japan’s concern that the EU There is, Raab predicted, reliant on tourism in recent years after government and busi- Amazon spokesman declined to ing the Word Radio #2.” Accord- Fukushima nuclear disaster. exit could result in trade friction with the rest of Europe enough political will in both nesses looked to it to drive growth after the 2011-14 debt crisis. comment. ing to the same report, Bezos also "The aspiration will be to the EU and Britain to con- Preliminary figures released at the end of last year showed That brings Bezos’s total stock bought “Vignette 19” by Kerry do it by the end of the year. negotiates its future relation- Raab at their meeting to lift clude a deal that will decide Portugal welcomed a record of 26 million tourists in 2019, with sales to more than $14 billion, James Marshall for $18.5 million We can certainly begin it ear- ship with Brussels and begins import restrictions on Japan- their future relationship around a third visiting Lisbon. Data from the World Travel and with the majority occurring in the at Sotheby’s. The tech titan, lier than Spring," Raab told free trade talks with other ese food and other products before a transition period fin- Tourism Council showed that the total contribution of travel and past four years, according to cal- meanwhile, has been hunting Reuters in an interview. major economies including that were imposed by Brussels ishes at the end of the year. tourism to Portugal's GDP reached 19.1 per cent in 2018. culations by Bloomberg. Bezos, around for another Los Angeles "Japan is right up there in the United States and Japan. after the nuclear accident at "We have too much in Drugs are not a new problem for the country, which decrim- 56, said in 2017 that he was selling home, according to agents there. the list of priorities partly While in the EU, Britain Fukushima in 2011. The EU common, too much at stake inalised possession and consumption of a limited amount of about $1 billion a year in Amazon The scale of his stock sales — because of the size of the mar- was part of a comprehensive eased those import regula- for politics to trump the mutu- drugs in 2001 after decades of high rates of heroin addiction. stock to fund Blue Origin, his including $2 billion in 2017 and ket, but also Japan is an trade deal with Japan that last tions last year, but still insists al economic self interest. On But while selling drugs is illegal, selling bay leaf or flour is not. space flight company. The rocket $2.8 billion in 2019 — partly absolute central country in the year began reducing tariffs on inspections and certificates both sides we've got a chance At best, it is a breach of street licensing laws. builder has since expanded oper- reflects Amazon’s soaring valua- Indo Pacific region," he added. across a raft of products, of origin for some Japanese now to focus on the positives Bruno Pereira, police commissioner for Lisbon's criminal ations and signaled its first tion, which surpassed $1 trillion Motegi, who said Japan including Japanese autos. produce, including seafood. in the relationship," he said. investigation department, said that new legislation was needed human test flights this year. at the close of trading for the first also wanted a rapid conclu- Britain's hurry to tie up "Obviously anything that Raab, who travelled to to tackle the problem, which requires "continuous attention". Bezos has also been on a time on Tuesday. The stock sion of trade talks, met Raab in new trade agreements could affects food, health and safety Japan from Australia, will stop "Tourists are unaware of this phenomenon so they are fooled," spending spree. closed at $2079.28 on Friday. Tokyo during his first overseas be to Japan's advantage, as it standards we would want to in Singapore and Malaysia Pereira said. Police say vendors make a steep profit by showing He was seen walking through Bezos still owns about 11 per cent trip following Britain's depar- seeks to secure better terms. look at very carefully. We und- before returning to London. potential buyers a real drug sample to smell or taste and once they the previews at Sotheby’s in Nov- of Amazon, worth $115.5 billion. ture from the EU, and as it Motegi said he had asked erstand the Japanese concern REUTERS have paid, handing them a fake substitute. Bombardier’s shaky future puts novice premier in dicey déjà vu SANDRINE RASTELLO & PAULA SAMBO read last month. that it is rethinking the programme with a staff of about 10,800 employees, against 8 February “Public opinion has lost some of its Airbus, which calls for more cash and 1,500 in rail. sympathy for Bombardier,” said Michel may prompt a writedown. It discussed The province is the world’s third- Bombardier has Quebec in a bind again. Nadeau, a former deputy chief executive combining its rail unit with France’s largest aerospace hub, with about than As the debt-laden plane and train officer at the Caisse de Depot et Place- Alstom SA. According to the Wall Street 43,378 positions and 191 employers as of maker explores selling one of its core ment du Quebec, the province’s influen- Journal, it’s in talks to sell its private-jet January 1, according to CAMAQ, an businesses and exiting a jetliner venture tial pension fund manager. “The Legault unit to Textron and its remaining A220 industry group focused on labour and with Airbus SE, its home province is feel- government can’t step in with big amo- stake to Airbus. Quebec would retain its training. That expertise means that jobs ing the need to get involved again — but unts — if they help, it has to be small.” 16 per cent stake, the Journal reported. are likely to stay in Quebec in the short to not at any cost. Bombardier said in a statement it cur- “The story of Bombardier has been a medium term even if Bombardier drops Unwilling to add to the $1 billion his rently has no request for help before the multiple car pile up because people just the Airbus venture or sells the business jet predecessor invested in the plane pro- Quebec government. won’t look away,” said John O’Connell, unit, said Karl Moore, a professor of man- gramme now known as A220, Premier A Canadian industrial champion with chief executive officer of Toronto-based agement strategy at Montreal’s McGill Francois Legault is exploring alternative roots in snowmobiles before acquisitions Davis Rea, who doesn’t own the stock. University. tools to preserve thousands of jobs, in turned it into a major builder of jets and “And governments are the same as any It’s the well paying corporate jobs and what’s shaping out to be his biggest eco- subway cars, Bombardier has been a other investor: prone to driving into the the related business for lawyers or nomic test yet. source of pride and a major employer in Quebec Premier Francois Legault can’t been seen as too generous with Bombardier’s back of previous crash victims.” accountants that may go away, he added, He’s walking a fine line. A self- Quebec. Yet its glory days are now behind management REUTERS Quebec is not entirely powerless. The a move reminiscent of the 1970s and described nationalist whose Coalition it as it focuses on reducing a $10-billion Caisse paid $1.5 billion for a 30 per cent 1980s, when fears of Quebec separatism Avenir Quebec party rose to power for the debt load that can partly be traced back to entry of Airbus. Investing directly in the dits and equity injections from federal and stake in the rail division in 2016 and will drove companies away from Montreal. first time 16 months ago, Legault has the C Series, a single-aisle jetliner that ran plane rather than the company as a whole provincial governments over the years, likely weigh in as Bombardier considers a Legault has often lamented head office vowed to close the income gap with into multiple delays and overruns. was a “serious mistake” by the Liberal including C$596 million in reimbursable tie up with Alstom SA. While technically losses due to acquisitions, such as Lowe’s wealthier Ontario and keep corporate Airbus gained control of the pro- government that now leaves little say to loans that it says it has completely paid independent, the Quebec savings’ man- Cos.’s purchase of Rona. head offices in Quebec. Yet he can’t been gramme in 2018 at no cost, renamed it the its successor over asset sales, said Legault. back. And it’s trying to reduce debt. Short ager follows a twin mandate command- The provincial government’s populari- seen as too generous with Bombardier’s A220 and now employs 2,700 workers at “We’re in a situation that’s not easy,” of a massive cash injection — which ing it to contribute to Quebec’s economic ty hovered at 60 per cent last month, management, whose image has been tar- the Mirabel plant, 53 kilometres (33 miles) Legault, a former businessman who co- Economy Minister Pierre Fitzgibbon ruled development. It declined to comment on according to a Leger poll commissioned nished after awarding itself generous pay outside Montreal. founded leisure airline Air Transat, told out as “not appropriate” — Bombardier any further investment. by Legault’s party. A misstep on bumps while cutting jobs, receiving gov- The deal took power away from Que- reporters on February 5. “We’re currently has little choice but to downsize. Legault said the train unit has a lot of Bombardier could put an end to the ernment aid, and failing to turn the com- bec, which had poured $1 billion into the looking at ways to protect jobs without in- The company has already sold assets potential as public transportation orders extended honeymoon. pany around. programme just two years earlier in ex- vesting too much of Quebeckers’ money.” in recent years, including in a pending are set to jump in coming years. For now “You don’t want to be a Quebec gov- “Bombardier: their failure, your bill,” change for a 49 per cent stake but saw its There’s no obvious solution. The com- deal for its CRJ jet unit with Mitsubishi though, most Bombardier jobs in the ernment who loses jobs in Quebec,” an editorial at Montreal-based La Presse share shrink to about 16 per cent with the pany has received billions in loans, tax cre- Heavy Industries Ltd. It said last month province can be found in aerospace, with Moore said. BLOOMBERG MUMBAI | 9 FEBRUARY 2020 WORLD 9 . < US administration to Israel bans Trump ousts two officials who Palestinian propose spike in AI, agri exports testified against him in trial quantum R&D funds via Jordan DAVID SHEPARDSON The budget proposal on Mon- REUTERS Washington, 8 February day will include a 70 per cent Ramallah, West Bank, 8 February JEFF MASON & KAREN FREIFELD declined to provide further president. increase for National Science Washington/New York, 8 February information "out of respect for The ambassador also said he The White House on Monday Foundation (NSF) for AI-relat- Israel has escalated a trade their privacy". A lawyer for and two other officials — En will propose a big jump in US ed grants and interdisciplinary war with the Palestinians by wo days after President Yevgeny Vindman did not ergy Secretary Rick Perry and government spending on arti- research institutes, rising to stopping their agricultural ex- Donald Trump's immediately respond to a Ukraine Special Envoy Kurt ficial intelligence (AI) and more than $850 million, sour- ports through Jordan, Palesti- T impeachment acquittal, request for comment. Volker — were disappointed in quantum information sciences ces said, as well as a significant nian Agriculture Minister Ri- his administration on Friday A spokesman for the NSC Trump's May order that they research and development in jump in funding at NSF for qu- yal al-Attari said on Saturday. ousted two officials — Army declined to comment. work with his personal lawyer its 2021 budget proposal, two antum information sciences. Israel and the Palestinian Lieutenant Colonel Alexander Representative Eliot Engel, Rudy Giuliani on Ukraine poli- people briefed on the plan said. The White House will also Authority (PA) opened a new Vindman and US Ambassador Democratic chairman of the cy at a time when Giuliani was The Trump administration propose additional funding for front in their decades-long to the European Union Gordon House Foreign Affairs playing a key role in pressuring wants Congress to a number of other conflict with a trade dispute Sondland — who provided Committee, said the decision to the Ukrainians for the investi- double spending on The Trump federal agencies. that began in October and has damaging testimony about remove Alexander Vindman gations. Sondland said he and AI R&D funding administration At the same time, escalated over the past week. Trump in Democratic-led con- was "shameful". the other two officials followed from $973 million to wants Congress the White House will "Yesterday, the director of gressional hearings. President Trump steps off Air Force One after arriving in "This president believes the the directive. nearly $2 billion by to double again propose an Israeli crossings informed all Sondland issued a state- Charlotte prior to a campaign event on Friday REUTERS only loyalty that matters is loy- Sondland also said that 2022 and to double spending on AI overall cut in federal exporters and all relevant par- ment saying he would be alty to him personally," Engel "inviting a foreign government spending on quan- R&D funding R&D spending, a ties that all Palestinian agri- removed from his post hours using shorthand for Vindman and obstruction of justice, said in a written statement. to undertake investigations for tum information sci- from $973 source said. The culture products would be after Vindman's lawyer military rank. keeping him in office. Asked earlier on Friday the purpose of influencing an ences spending to million to administration last banned from export to world announced that the military Sondland, a wealthy Oregon Vindman in November tes- about media reports that he upcoming US election would $860 million within nearly $2 year proposed $134.1 markets through the Jordan- officer — the White House's top hotelier, was a Trump political tified that Trump made an im- might remove Vindman, be wrong." The White House two years. billion by 2022 billion but Congress ian crossing starting Sunday," Ukraine expert — was being donor before being named by proper demand of Ukrainian Trump told reporters: "I'm not and State Department did not Michael Kratsios, approved $155.9 bil- al-Attari told Voice of removed from his National the president to his ambassa- President Volodymyr Zelenskiy happy with him. You think I'm immediately respond to a White House adviser and US lion. The administration is Palestine Radio. Security Council job. dor post. In his statement, he in a July 25 phone call that supposed to be happy with requests for comment regard- chief technology officer, expected to propose $142.2 bil- Israeli and Jordanian offi- Vindman, a Ukraine-born said he was advised that Trump became the focus of the inquiry. him?...They're going to be mak- ing Sondland's removal. declined to confirm the figures lion in overall R&D funding in cials did not immediately res- US citizen and decorated Iraq "intends to recall me effective Vindman said that "I couldn't ing that decision." Another senior White House but said in a statement that the its 2021 budget. pond to requests for comm- war combat veteran, was es- immediately" from his job. believe what I was hearing" in A source familiar with the aide who testified over im- budget will "ensure America Last February, US President ent. The PA declared a boycott corted out of the White House, "I am grateful to President the phone call. situation told Reuters that peachment, Jennifer Williams, continues to lead the world in Donald Trump signed an exec- of Israeli calves in October. his lawyer David Pressman said Trump for having given me the Trump asked Zelenskiy to Vindman would be reassigned left this week for a post at the US critical technologies like AI and utive order asking federal Last weekend Israeli De- in a statement, adding that the opportunity to serve, to launch investigations into both to the Defense Department. military's Central Command, quantum. America's economic agencies to dedicate more fence Minister Naftali Bennett move was retribution for Secretary Pompeo for his con- Democratic rival Joe Biden and Vindman's two-year stint at according to Bloomberg News. strength and national security resources and investment into said he would halt all PA agri- Vindman's testimony. Michael sistent support, and to the a discredited theory beneficial the White House was due to end Trump denied reports that depend on it". research, promotion and train- cultural imports, which in Volkov, who represented exceptional and dedicated pro- to Russia that Ukraine colluded in July. US Defence Secretary he was weighing a permanent The White House is also ing on AI. turn prompted the PA to say it Vindman when he testified in fessionals at the US Mission to with Democrats to harm Mark Esper said on Friday that chief of staff to replace acting focused on boosting quantum The White House said last would end imports of Israeli the impeachment inquiry, said the European Union," he said, Trump in the 2016 US presi- the Pentagon protects all serv- aide Mick Mulvaney, who was a information research as part of year that investment in AI is agricultural products, fruit Vindman's twin brother, referring to Secretary of State dential election. ice members from retribution. central figure in the impeach- its effort to support future "critical to creating the indus- juice and bottled water. Yevgeny Vindman, was escort- Mike Pompeo. During that appearance, Vin Trump has said he is still bit- ment inquiry. industries. Still in its infancy, tries of the future, like Those moves have frayed ed off the White House grounds Vindman and Sondland dman downplayed concerns ter as he turns his attention to "That was a false report. I quantum computing aims to autonomous cars, industrial trade links that have general- at the same time. both testified in the House of that he would suffer payback seeking a second four-year term have a great relationship with operate millions of times faster robots, algorithms for disease ly held strong since the two "There is no question in Representatives impeachment for speaking out. “I will be fine in the November 3 presidential Mick," Trump said. than today's advanced super- diagnosis, and more". sides signed interim peace the mind of any American inquiry that led to Trump for telling the truth.” election. Biden's campaign for the computers using quantum Experts say quantum com- accords in the 1990s, even why this man's job is over, becoming only the third US Yevgeny Vindman, also an In testimony in the House Democratic presidential nomi- mechanics. puting could have a major weathering the collapse in why this country now has one president to be impeached. Army lieutenant colonel, impeachment inquiry, Sond- nation suffered a serious set- The figures do not include impact on healthcare, com- 2014 of peace talks. Bilateral less soldier serving it at the The Senate, controlled by worked for the NSC as a lawyer. land said he was following back when he came in fourth some Defence Department re- munications, financial servic- tensions have been further White House. LTC Vindman Trump's fellow Republicans, An Army spokesperson said Trump's orders when he pus- place at the Democrats' first search programmes. Officials es, transportation, artificial fuelled by the announcement was asked to leave for telling acquitted him on Wednesday both brothers had been reas- hed Ukrainian officials to carry state contest in Iowa this week. say the jump is aimed at keep- intelligence, weather forecast- of US President Donald Tru- the truth," Pressman said, of charges of abuse of power signed to the Army, but out investigations sought by the REUTERS ing pace with China's efforts. ing and other areas. REUTERS mp's Middle East peace plan.

Khamenei says Iran should grow THE CONTENDERS Facebook, Messenger military might to prevent war accounts PARISA HAFEZI posed crippling sanctions Dubai, 8 February aimed at halting all Iranian hacked oil exports, saying it seeks to Iran should increase its mili- force Iran to negotiate to REUTERS tary might to prevent a war, reach a wider deal. 8 February Supreme Leader Ayatollah Khamenei, who dismissed Ali Khamenei told a gather- the US sanctions as a "crimi- Twitter confirmed on Friday ing of air force commanders nal act", has banned Iranian that the official Twitter on Saturday, dismissing the officials from holding talks accounts of social media US sanctions on the country unless the United States giant Facebook and its as "criminal act". returns to the deal and lifts Messenger platform were "We should be strong to Khamenei has banned Iranian all sanctions. He said Iran hacked. prevent any war against the officials from holding talks should distance its economy A Twitter spokesperson county. unless the US returns to the from dependency on oil said in an emailed statement Being weak will encour- deal and lifts all sanctions exports. that the accounts were age our enemies to attack Iran and the United States hacked through a third-par- Iran," Khamenei, Iran's top programme in return for lift- stormed to the edge of a war ty platform. authority, said according to ing sanctions. in early January when "As soon as we were state news agency IRNA. "Since the revolution their Tehran's most prominent made aware of the issue, we The Islamic Republic has aim was to stop us from hav- general, Qassem Soleimani, locked the compromised vowed to increase its military ing a strong military and a was killed in a US drone accounts and are working strength despite mounting strong air force ... but look at strike on his convoy in closely with our partners at pressure from Western coun- us now. Baghdad. Facebook to restore them," tries to curtail its military We even build planes. We Tehran responded by the Twitter spokesperson capabilities, including its bal- have transformed their pres- launching missile attacks on said. listic missile programme. sure to opportunity," US targets in Iraq. The account of Twitter Tensions between Tehran Khamenei said, according to Iranian television said 80 Inc Chief Executive Jack and Washington have spiked state TV. "American terrorists" had Dorsey was hacked in since 2018 when US Iran is marking the 41st been killed and US helicop- August, allowing an unau- President Donald Trump anniversary of the Islamic ters and military equipment thorised person to send abandoned a 2015 pact revolution, which toppled damaged, without providing public tweets including between Iran and world pow- the US-backed Shah Moham- any evidence, Washington racial slurs and curse words ers under which Tehran mad Reza Pahlavi in 1979. denied that there were any South Bend Mayor Pete Buttigieg, Senator Bernie Sanders, former Vice President Joe Biden and Senator Elizabeth Warren to his 4 million followers accepted curbs to its nuclear Washington has reim- fatalities. REUTERS gather onstage at the Democratic 2020 US presidential candidates debate in Manchester, New Hampshire, on Friday REUTERS before Twitter secured the account. The billionaire’s big job of restoring Aston Martin

SIDDHARTH PHILIP on Aston Martin’s stock, which has lost 75 own Formula 1 race-car team. (Chou, who pedigree, Palmer said in an interview last 8 February per cent of its value. is part of the Aston Martin consortium, is week. “I think the dialogue will change “Perhaps a touch of irrational mad pas- worth at least $2.8 billion.) from automotive to luxury.” In a career spanning more than three sion with a large wallet isn’t as crazy as it Born Lawrence Sheldon Strulovitch in “The investment by Stroll reinforces decades, Canadian fashion mogul Law- sounds,” said Matthias Schmidt, an inde- Montreal in 1959, Stroll today enjoys the our luxury pedigree, and also underlines rence Stroll has relied on a simple formu- pendent automotive analyst in Berlin. good life. Last year, the tabloid press was the confidence the consortium has in the la: take over a brand that’s either niche, or full of pictures from his Great-Gatsby brand,” Palmer said. in trouble, or both, and beef it up for half a Ditching electric themed birthday bash on the Italian island Whether Stroll will show longer invest- dozen years. Then exit with a tidy profit. While Stroll hasn’t laid out his plan for As- of Capri. Guests included Michael Douglas ment stamina in cars than in fashion It’s a skill he honed in the 1980s bring- ton Martin in public, the stakes couldn’t and his wife, Catherine Zeta-Jones. Stroll remains to be seen. In 2018, he led a group ing Ralph Lauren’s preppy New England be higher. The company has huge finan- has homes dotted around the globe, from of investors to lift the Force India Formula look to Europe, before buying Tommy cial outlays, having pinned its turn- Switzerland to the island of Mustique. 1 team out of administration. Renamed Hilfiger in 1989 with long-term business around on the success of its first SUV, the Stroll’s past successes in fashion relied Racing Point, the UK-based team now partner Silas Chou — another clothing $189,000 DBX. in no small part on dramatically extend- counts among its drivers Stroll’s 21-year- brand that celebrated Americana with its The DBX is Aston Martin’s bet that it ing the product portfolio to make the old son, Lance, who finished 15th in the blue-red-white emblem and country-club can broaden its clientele from buyers of brands more widely accessible. In the 2019 drivers’ championship. Despite attire. Add to that list Michael Kors, tee- sleek sports cars like the entry-level case of Michael Kors, that meant adding pumping about $118 million into the team, tering on the brink of collapse when the $150,000 Vantage, which has turned out to popular accessories like sunglasses or it ended up in seventh place in the cham- duo picked it up in 2003. By the time be a tough sell. Aston Martin is also differ- handbags to the core range of clothing. pionship. Still, since F1 cars are designed Stroll and Chou sold out in 2011, Kors was ent from Stroll’s previous investments Investors have speculated that Stroll may the year prior, 2020 will be the true test of the king of affordable luxury with a sky- because the company is listed, meaning Aston Martin is different from Lawrence Stroll’s previous investments because the also take Aston from being an automobile Stroll’s foray, according to Formula high valuation. any turnaround happens under the glare company is listed, meaning any turnaround happens under the glare of public ownership company to a luxury consumer brand, an Money, which tracks the business of F1. Now Stroll wants to prove he can repli- of public ownership and the reporting and the reporting requirements this brings REUTERS extension whose profit contribution “Most F1 owners don’t invest in F1 to cate that approach in a very different field, requirements this brings. remains untested beyond small items like make money,” said Caroline Reid, the one where investments are higher, regula- “Stroll brings a number of important “The DBX on its own cannot carry the research and development cycles that key rings or T-shirts. publisher Formula Money. “For most tion is fiercer and competition is more un- benefits, namely he has removed the weight of the company,” Pescatore said. require extensive investments, and Aston Even before Stroll showed up, Aston team owners, F1 is a marketing exercise. forgiving. Last week, UK sports-car maker urgent cash need of the business, allowing Deliveries of the model begin in May, Martin’s decision to jettison its electric Martin Chief Executive Officer Andy Pal- Most usually, it’s a good way to promote Aston Martin Lagonda Global Holdings it to focus on building its brand rather according to Aston Martin. ambitions may put it at a technological mer sought to create a lifestyle offering road cars.” secured a 500-million-pound ($656 mil- than selling units to fund working capital,” Stroll, who declined to be interviewed disadvantage. that includes cashmere scarves and leat- That could be an important extension lion) lifeline from a group that included said Angus Tweedie, an analyst at for this story, wasted little time resetting her bags, as well as partnerships ranging for Aston Martin. As part of the deal, Stroll, who is set to become executive Citigroup Global Markets in London. Aston Martin’s priorities. The carmaker Formula 1 from the luxurious (a real-estate develop- Stroll’s F1 team will become the Aston chairman of the brand best known as the Even though the DBX pushes into a said it’s paring back big-ticket investments For Stroll, the Aston Martin rescue pack- ment in Miami) to the ludicrous (a mini Martin Team in 2021, for a 10-year term. vehicle of choice for James Bond. crowded niche of luxury SUVs, early in new models to focus instead on easier- age gives his team as much as 20 per cent submarine called Project Neptune). The For the carmaker, which has gone bust 7 Aston Martin badly needs a saviour. At orders for the model have been encourag- to-achieve projects such as the DBX and of the company. It also combines two of positive impact on the bottom line is times over the decades, its another att- the time of its initial public offering late in ing. That success now gives Stroll and the special editions that tend to cost millions. his big passions: corporate turnarounds questionable, at best: today, Aston empt at a turnaround in rapid succession. 2018, the business was pitched as a peer to team some breathing space to relieve pres- Aston Martin also put on hold its plans and high-powered automobiles. Stroll’s Martin sunglasses and T-shirts can be Fans of the brand now can look for- Ferrari, which had pulled off a highly suc- sure from other models, said Giulio for an electric model, a counter-intuitive successes in the fashion industry made had for 75 per cent off their sticker price ward to not just the latest Bond movie this cessful listing three years earlier. But the Pescatore, an analyst at HSBC in London. move in an environment where most oth- him a billionaire, worth about $2.5 billion, at discount chains. year, but can hope for a new investor who comparison quickly evaporated, with a At the same time, Aston Martin would be er carmakers are going all-in with battery- according to the Bloomberg Billionaires will display a more lasting commitment string of profit warnings, lacklustre sales wise not to pursue a single-model strategy, powered vehicles. Unlike the world of Index. He owns an extensive car collection Luxury focus than the live-and-let-die approach of and dwindling financial reserves weighing he said. fashion, the car industry has years-long that includes rare Ferraris, as well as his Stroll’s arrival will reinforce Aston’s luxury Stroll’s predecessors. BLOOMBERG OPINION 11 > Volume XIII Number 47 MUMBAI | 9 FEBRUARY 2020

ing National Population Register exercise, ing forum in the form of the Upper and campaigns for the parliamentary elections and the influential protests at Shaheen Bagh Lower Houses. Certainly, both Houses have last year and the recent one for Delhi have Time for the face-off in the south-east of the city-state. The BJP seen some spirited debates in recent years. shown, the Election Commission has few leadership has made these contentious But it is unclear how far many people effective disciplinary tools at its disposal. A Televised debates between candidates is a good idea issues of Indian identity the centre of their beyond the educated elite actually watch few days’ ban on politicians insulting can- campaigns. Though Mr Kejriwal is cam- these debates. It is also unclear how far even didates or minorities and exhorting the pub- nion Home Minister Amit Shah could be a good time to start. paigning mostly on his track record in deliv- the most skilled orator could influence peo- lic to violence amounts to little more than a had little trouble not responding The widely televised American presi- ering near-free electricity and water, and ple, given the rising influence of inflamma- tap on the wrist. On the other hand, a face- to Delhi Chief Minister Arvind dential debates are the best known of this setting up primary schools and local clinics, tory social media. That apart, brute majori- to-face debate, with clearly set out rules of U Kejriwal’s challenge for a debate tradition but several others also conduct he has felt it incumbent to refute what he ties offer little scope for reasoned debate in engagement, between key candidates in with the Bharatiya Janata Party’s chief min- leaders’ debates, some of them with political sees as the BJP’s divisive politics. The chal- any case. The prime minister’s long reply to state or national elections, would force politi- isterial candidate ahead of the Assembly configurations resembling India’s — Ireland, lenge to a debate with the BJP’s chief min- the Motion of Thanks to the President's cians to extend some modicum of respect — elections. Despite the torrent of impassioned the UK (though Boris Johnson shied off this isterial candidate is an adroit manoeuvre, Address is a case in point. It offered the a critical tool of healthy democracy — and rhetoric that accompanies every election, time), Canada, Australia, and New Zealand. since he is well aware that his principal oppo- country’s chief executive an open platform explain their stand on key issues. No less Indian electoral traditions have not adopted The campaign ahead of the Delhi polls nent, strapped for choice, is reluctant to to make a campaign speech — some of it importantly, in these polarised times, it will this progressive tool of modern democracy. shows why. For the BJP, the most emotive reveal its hand. falling well short of a fact checker’s scrutiny enable journalists of all ideological hues to But as the claims and counterclaims become issue of this election has been the passage of It is possible to counter-argue that our — ahead of the state polls, including disre- ask all candidates hard questions. After all, more fabulist and toxic, the next election the Citizens’ Amendment Act, the impend- parliamentary system provides for a debat- spectful references to the opposition. As the the nation wants to know.

How to double farmers’ incomes Bringing MSMEs In a country as vast and diverse as India, it will require a variety of development approaches to bring the benefits into e-commerce of growth and prosperity to all agriculturalists PTI ISHTIYAQUE AHMED ketplaces — poor digital literacy, poor geographical reach, and inadequate he advent of e-commerce has digital and physical infrastructure. shifted the locus of retail busi- There are two key reasons that impair T ness in both the global and the ability of MSMEs to participate domestic context by bringing the actively. First, the average commis- store to the customer, obviating the sion charged for facilitating business need for customers to visit the store. across marketplaces is very high, and Aided by a thriving digital economy after deducting shipping costs and with ~500 million internet users, taxes, what the seller is left with is India’s e-commerce sector recorded quite low as compared to offline sales, the second highest year-on-year which makes it unviable for most growth at 31.9 per cent across coun- small and medium-sized businesses. tries in 2019. In 2017, India’s e-com- Another major reason behind the merce sector was valued at $24 bil- sub-par onboarding and sustenance lion, representing 3 per cent of total of small and medium-scale traders is retail sales. However, the share of the cliquish nature of the e-commerce global e-commerce sector in overall sector, which is reflected in the huge retail sales was approximately 10 per market share held by closely associ- cent, implying that there is space for ated sellers. On the major market- growth of e-commerce in India. places, a few top vendors capture a A large proportion of India’s e- large share of the total merchandise commerce sector primarily is shared and, given their financial strength to by four companies. Leading e-com- offer products at lower price points, merce companies operate on the phi- smaller businesses find it difficult to losophy of increasing the gross mer- compete. This is further compounded chandise value by bringing big by the introduction of private labels retailers on board their platform and by marketplaces through select ven- moving inventory swiftly through dors, which squeeze the e-commerce heavy promotions. Additionally, mar- space for smaller businesses. ketplaces see major spikes in sales All this demonstrates that only a during festive seasons owing to heavy minuscule percentage of MSMEs par- discounts offered by vendors. ticipate on e-commerce platforms, However, looking at the larger pic- leaving the large potential untapped. ture, two questions arise: The sector needs to devise Is Indian e-commerce Only a minuscule a mechanism to facilitate growing in an inclusive percentage of SMEs increased participation Almost 90 per cent of India’s farmers are small and marginal land-holders. Farming is typically restricted to the monsoon months and crop productivity is abysmally low manner? Also, are the participate in by MSMEs and small prevailing practices e-commerce businesses in India’s e- SATYABRATA ACHARYYA consistent with the focus. It is pertinent here to ask: to afford a decent living. The major challenge here is to enough to realise the sec- platforms, leaving commerce growth story, What is the readiness of our farmers to take part in mar- ensure their sustainable retention in the supply chain. tor’s significant latent the sector’s large which will increase trade, n February 2016, the Central government had set a ket-based models? What is their suitability for partici- Further, the cost of aggregation to reach economies of potential? potential domestic manufacturing goal of doubling the income of farmers by 2022 in pating in supply chains? scale often renders the supply chain uncompetitive. The answers do not untapped. A and employment genera- I real terms from the baseline income of 2015-16. The Almost 90 per cent of our farmers are small and mar- Hence the concern over their suitability. appear to be in the affir- mechanism to tion, and help in integrat- timing of the declaration was most appropriate, as the ginal land-holders. About half of them, living in the vast There is a ready match of the current model with mative. The practices change this ing smaller businesses farm sector was struggling to recover from a severe stretches of the central and eastern Indian plateau, prac- medium and big farmers, who constitute 10 per cent of prevailing in the e-com- scenario is needed with the overall value drought in 2015-16. There was a decline in farmers’ tise rain-fed farming owing to the lack of irrigation. the farming community. Another 25 per cent of farmers merce sector are not chain. Thus, there is an incomes, rising indebtedness of farm households and a Farming is typically mono-cropping, restricted to the from the smallholder segment, who are enterprising inclusive. They also pose obstacles in imminent need to devise a solution sharp increase in the incidence of farmer suicides. The monsoon months. Crop productivity is at abysmally low and “mainstreamed”, could be added to this number. leveraging its true potential for the for remedying this situation. contribution of agriculture to the country’s gross domes- levels, which leads to a lack of marketable surpluses. This Thus, a third of the farming community could make benefit of both the entire e-commerce The solution lies in creating a uni- tic product (GDP) had fallen to 18 per cent, though agri- reality is in conflict with the supply-chain and market- real use of the Budget provisions. They are anyway deriv- network and the overall economy. versal e-commerce interface which is culture accounted for 50 per cent of employment. The focused approach. A large majority of our rain-fed farm- ing benefits from multiple schemes offering asset sub- There are an estimated 1.5 million seller-agnostic and pro-active in on- target set by the government was indeed an ambitious ers do not have the wherewithal to increase productivi- sidies, cheaper credit and minimum support prices. In sellers registered across various boarding sellers of goods and servic- one, calling for a growth rate of 10 per cent in real terms ty and follow supply-chain regimentation. They are not the current model, this number is not going to increase Indian portals. However, since the es who are MSMEs as well. There every year from 2016 onward. yet ready for it. They form the bulk of the lowest income any further. A large majority of farmers will remain majority of the sellers are common needs to be engagement with the Where are we in 2020? As per the Economic Survey quintile. Their inclusion in supply chains will require excluded from this model, allowing only marginal across platforms, the true number MSMEs and in making their on- 2019-20, in the past five years, the average annual growth substantial public investment in soil and water conser- increase from the current rate of growth. could be just a little more than the boarding ‘worth their while’ in terms rate of agriculture and allied sectors has stagnated at 2.9 vation, irrigation and agronomic That takes us to the most important question: How to number of sellers registered on the of both economic value and capacity- per cent in real terms. The farm sector needs to now grow Those who training. attain a growth rate of 12-15 per cent in the farm and largest marketplace. building. Data aggregation and shar- at 12-15 per cent annually in the next three years to reach practise rain-fed About 52 per cent of the culti- allied sectors? For a country as vast and diverse as India, Distinctive sellers, across market- ing across e-commerce platforms will anywhere close to the target. The existing set of policies farming form vated land area (72 million there cannot be a one-size-fits-all design. There is a places, range between 0.5 million and go a long way in enhancing the inclu- and actions on the ground have so far proven grossly the majority, hectares) has no irrigation. The need for imagining different approaches and economic 0.75 million. Further, those who sivity of the overall e-commerce inadequate to stimulate growth in the farm sector. The and they lack creation of basic irrigation facili- models to bring on board all sections of farmers on a engaged in at least one transaction in ecosystem. E-payment infrastructure country was thus been keenly awaiting the Budget. the capability to ties will require an investment in growth trajectory. Agriculture being a state subject, a lot the preceding 30 days on a particular as well as established public service The combined budget of agriculture, rural develop- take part in the region of ~3 trillion. However, depends on the efficiency of the state in leading the ini- platform could be just 10-15 per cent platforms can be leveraged for pro- ment, fisheries and irrigation is ~2.83 trillion. The outlay market-based over a medium-term time horizon, tiative. With state agriculture departments in a mori- of the total number of registered sell- viding ease of payment and delivery, for agriculture has seen a small increase, from ~1.39 tril- models and the Budget projection is nowhere bund state, they are not in a position to deliver, unless ers. This takes us to around 100,000 and in facilitating last mile connec- lion last year to ~1.43 trillion for 2020-21. Given the cur- supply chains close to this requirement. The fully revamped. active sellers across marketplaces. On tivity. This may just open up a pan- rent state of rural distress, one would have expected a farm sector will remain invest- Finally, for achieving the ambitious goal of doubling the other hand, there are over 60 mil- India market for small businesses. much higher allocation. ment-starved for yet another year. the income of farmers in just six years (as measured from lion micro, small and medium enter- The above measures are poised to The finance minister has formulated a 16-point agen- The other half of the small-holder farmer segment — 2016, when the target was set), there has to be a strong prises (MSMEs) registered in India, enhance the value of the Indian e- da to stimulate rapid growth in agriculture. A closer those living in river basin areas — are familiar with mod- measurement system in place to validate the efficacy of which are very diverse. Of these, some commerce sector manifold and make look suggests a preponderance of concerns to organise ern farming and mainstream markets. However, high interventions. It is worrisome to learn that there is no 43 million are in manufacturing and it more inclusive. It is now up to the supply chains and link farmers to the market. From ask- population pressure on land has resulted in the frag- system to estimate farmers’ incomes at regular intervals. trading. Obviously, the e-commerce stakeholders to decide what they ing the states to adopt model agricultural laws, “one mentation of landholdings, thereby affecting productiv- An intervention of such a scale and significance should landscape has not adequately inte- want to do. product, one district”, a stress on inventory storage in vil- ity and resource-use efficiency. Often, they operate in periodically inform the nation about its progress. grated the MSMEs of the country. lages, geo-tagging of warehouses and cold storages, to such small land parcels that even major increases in crop There are multiple reasons for The writer is Advisor, NITI Aayog. The views the idea of Krishi Udaan and Kisan Rail, the priorities are productivity do not help them to earn sufficient income The writer is with PRADAN poor integration of MSMEs on e-mar- are personal

> OTHER VIEWS With little space to cut rates, Decoding the Delhi campaign LIC floatation is risky business RBI turns to other tools AAP, BJP contested on distinct issues Corporate governance issues at play But the strategy of directing credit to The Delhi election campaign campaign progressed, an The decision of the Narendra tinue, which would soothe ended on Thursday. The Aam aggressive attack on protests Modi government to divest a any apprehensions that poli- select sectors is questionable Aadmi Party (AAP), which against the CAA. The BJP small part of its stake in the cyholders might have. The won a spectacular 67 seats in campaign sought to convert Life Insurance Corporation of government will have to With inflation surging above the upper band of the RBI's mon- the 2015 assembly polls, ran a the election into a referen- India has sent the stock mar- amend the legislation under etary framework, and expected to remain elevated in the com- focused campaign around its dum on whether voters were kets into a tizzy. If and when which LIC was established, ing quarters as well, the Monetary Policy Committee (MPC) has record in office. Ever since its for Shaheen Bagh — which it happens — probably in the turning it into a company that chosen to maintain the status quo on rates along expected Lok Sabha defeat — where it was projected as a Muslim second half of the next fiscal will come under the scrutiny lines. Higher inflation has restricted the policy space for the lost all seven seats by huge protest backed by AAP — or (2020-21) — this is almost cer- of the market regulator and MPC, but not the RBI. The central bank has taken recourse to margins — AAP leader and against it. In the process, BJP tain to become the largest will have to abide by the pro- credit policy and other tools available to it to stimulate the Delhi chief minister Arvind leaders also engaged in ever capital issue in India. A visions of the Companies Act. economy. These measures signal its unequivocal intention to Kejriwal decided to tone inflammatory rhetoric. Given successful flotation of LIC is Until now, LIC has acted boost growth. The strategy broadly operates at two levels — down his attacks on Prime these contrasting campaigns, critical not only for improving under directions from the first, hasten the transmission of interest rate cuts to the broad- Minister Narendra Modi and the outcome will reveal if vot- the finances of the parlous Centre: it has propped up er economy, and second, boost credit flow to select sectors. The refrain from intervening on ers decide to repose their coffers of the Centre but also falling markets; it has shov- first leg has been operationalised through tweaking the liq- national issues. faith in a national leader (Mr for the revival of the near elled funds into government's uidity framework, and conducting ~1 trillion long-term repo The BJP, for its part, fused Modi) or a local leader (Mr moribund primary capital initiatives. If it continues to operations. With the risks of an NBFC contagion slowly abat- three major issues: The Kejriwal); if they prioritise market. follow the Centre’s diktats, it ing, over time, these measures should also lead to a lowering cash reserve ratio. But the strategy of directing credit to select promise of the same party, governance or ideological LIC has a very small capi- will raise serious corporate of credit spreads, effectively lowering the cost of borrowing sectors is questionable. And though other measures to ease led by Narendra Modi, being issues; and if their loyalties tal base: a mere ~100 crore, governance issues that across the broader economy. stress in the commercial real estate sector and of MSMEs have in government at the Centre, are stable or fluid, depend- that will need to be expanded minority shareholders may The second leg of the strategy aims to boost credit flow to been welcomed, the central bank should be mindful of the risks state and municipal levels; ing on whether the election is before the public flotation. not be entirely comfortable select sectors. The RBI has provided relief to banks for incre- of forbearance. its provision of ownership national or local. The government has indicat- with. mental loans extended to auto, real estate and MSMSEs, by papers to residents of unau- ed that the sovereign guaran- reducing the cost of lending by waiving off the requirement of The Indian Express, February 7 thorised colonies; and, as the Hindustan Times, February 7 tee granted to LIC will con- The Telegraph, February 7 12 MUMBAI | 9 FEBRUARY 2020 1 >

PHOTOS: SANJAY K SHARMA Millennials choose INDIA INC VOTES silver jewellery this Business leaders were seen fulfilling their civic duty in Delhi Valentine's Day Sales of gold jewellery plunge as bullion prices rise

DILIP KUMAR JHA Mumbai, 8 February

teep gold prices have weakened buying senti- S ment, not only for the middle class, but also for the rich and super-rich con- sumers in the ten-week sea- son that began with Christmas and ends with Mother’s Day on March 8. While the middle class seem to have stopped placing new orders for bullion pur- chase, millennials have shift- C K Birla, chairman of the CK Sidharth Birla, chairman of Xpro India & Harsh Pati Singhania, vice-chairman & Dilip Modi, chairman of ed to designer silver jewellery Birla Group, at a polling booth Digjam, walking out of a managing director, JK Paper, after Spice Mobility, at a and low-value handcrafted in Delhi polling station casting their vote polling station gold ornaments this Valentine’s Day to offset high prices with low-ticket size purchase. ~10,000-~15,000. sum of money. Silver prices “Many jewellery manufac- Rajendra Jain, managing retreated after surpassing the turers and retailers have director (gemstones), psychological barrier of launched handcrafted pieces Swarovski India, said: “Many ~50,000/kg recently. Cairn, Voda eligible for tax amnesty in India: Official by designers in silver jew- brands are targeting millen- Meanwhile, jewellery and ellery, which are studded with nials through new collections fashion designers such as lucrative coloured gemstones, of jewellery. Rather than for Gautam Banerjee, Rajiv BLOOMBERG to attract customers. With a just one season, jewellers are Popley, and Riyaz Gangji have New Delhi, 8 February good finish, these have been trying to ensure that con- introduced lucrative designs the preferred choice for young sumers buy again.” in fashion accessories and Vodafone Group and Cairn Energy couples this season. Low-tick- “This year, however, sharp precious metals this are eligible to settle a tax dispute with et size basic ornaments such increase in gold prices has Valentine’s Day. India’s government under a new as rings, pendants, etc. are turned consumers towards sil- Jewellery sales in India amnesty program, a senior govern- also selling, but not to the ver. However, instead of plain have witnessed a steady ment official said. tune of silver jewellery this silver jewellery, consumers decline over the past three- The companies will need to pay Valentine’s Day,” said are looking at designer pieces four years because of a sharp their taxes by March to benefit from Anantha Padmanaban, man- for occasional and daily increase in Customs duty to the interest and penalty waivers aging director, NAC Jewellers, wear,” Jain added. 10 per cent till the previous under the program, Pramod Chandra a Chennai-based jewellery Gold prices have set a year, and 12.5 per cent there- Mody, chairman of the Central Board retailer. record, trading at ~40,500/10 after. Apart from that, the gov- of Direct Taxes, said in an interview. Jewellers have started tar- grams on Friday, following ernment has levied Customs “We are trying to see to it that the The companies will need to pay their taxes by March to benefit from the interest and penalty waivers under the program, geting millennials as poten- global trends as geopolitical duty of 2.5 per cent and 7.5 per litigation is kept to barest minimum,” Pramod Chandra Mody, chairman of the Central Board of Direct Taxes, said in an interview tial customers for Valentine’s uncertainty, coupled with an cent on rough and polished Mody said, adding that “if they wish Day with innovative designs economic downturn, made diamond, respectively. To to come, they are welcome.” est and penalties — that New Delhi ately respond to separate emails seek- current and next fiscal years as an of jewellery. With a token the bullion a safe haven worsen the scenario further, Vodafone’s dispute relates to its raised for a 2006 transaction. ing comment. economic slowdown results in lower- money size cut to make orna- investment avenue. Silver, the government extended $11-billion acquisition of a 67 per cent Finance Minister Nirmala India’s latest program aims to than-expected tax collections. ments affordable, jewellers however, continues to trade Customs duty on coloured stake in the mobile-phone business Sitharaman this month proposed the recover a part of the about ~9.32 tril- The companies had previously have introduced silver jew- at ~46,100/kg, which may be gemstones, and also levied 18 owned by Hutchison Whampoa, now amnesty program to pare an estimat- lion ($131 billion) in taxes locked in rejected a similar offer in 2016, and ellery with a heavy look, and giving consumers pride to per cent goods and services part of CK Hutchison Holdings in ed 4,83,000 direct tax cases pending disputes. That would help the gov- instead sought to settle the disputes which may also be stone stud- own a piece of precious metal tax on hallmarking and certi- 2007, while Cairn Energy is contesting in various courts. Spokespersons for ernment plug its budget deficit, the through the international arbitra- ded, at a price point of without coughing up a large fication of jewellery. a big tax bill — $1.6 billion plus inter- Vodafone and Cairn didn’t immedi- target for which was widened for the tion mechanism.