FRIDAY, 10 JANUARY2020 18 pages in 1 section www.business-standard.com MUMBAI (CITY) ~9.00 VOLUME XXIV NUMBER 106

THE MARKETS ON THURSDAY Chg# Sensex 41,452.4 634.6 Nifty 12,215.9 190.6 ECONOMY&PUBLIC AFFAIRS P4 ECONOMY&PUBLIC AFFAIRS P5 Nifty futures* 12,269.8 53.8 Dollar ~71.2 ~71.7** Euro ~79.1 ~79.8** POLICYMAKERS SHOULD FOCUS ‘TOUGH TIMES’: SC REFUSES Brentcrude ($/bbl)## 64.6## 65.9** Gold (10 gm)### ~39,722.0 ~965.0 ON SLOWDOWN: ROUBINI URGENT CAA HEARING *(Jan.) Premium on Nifty Spot; **Previous close; # Over previous close; ## At 9 pm IST; ### Market rate exclusive of VAT; Source: IBJA PUBLISHED SIMULTANEOUSLY FROM AHMEDABAD, BENGALURU, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI (ALSO PRINTED IN BHOPAL), NEW DELHI AND PUNE INDICES SURGE, OIL EDlikelytoattachChanda DROPSON EASING Fundamentals are US-IRAN TENSIONS Kochhar’s residence,assets SENSEX The benchmark INTRA-DAY indices rose to strong, economy mirror the gains in Their market value could be around ~800 crore global markets on hopes of a SHRIMI CHOUDHARY de-escalation in New Delhi, 9 January STORYSO FAR the US-Iran tensions. The will rebound: PM The Enforcement Directorate (ED) is 2018 Sensex and Nifty likely to make a provisional attach- February: CBI launches rose 1.5 ment of assets and properties preliminary enquiry in ICICI- per cent each, Economists ask Modi to restore data credibility, provide stimulus belonging to former ICICI Bank Videocon loan matter their biggest managing director and chief execu- single-day stride tive officer Chanda Kochhar and March: ICICI Bank board backs since October 23, 2019. The Sensex rose husband, Deepak Kochhar, in con- then MD & CEO Chanda Kochhar 635 points to end at 41,452, while the Nifty nection with the Videocon loan case. April: Sebi initiates preliminary surged 191 points to close at 12,216. The The assets may include her enquiry, seeks explanation over biggest gainers were ICICI Bank, State Bank plush South Mumbai apartment, conflict of interest of India, IndusInd Bank, and Mahindra besides certain shares, investments & Mahindra. 11 > and offices of Deepak Kochhar’s May: Sebi issues show-cause companies including Nupower notice to ICICI Bank, Kochhar Renewables. |Bank's board orders an House of Commons The investment value of these independent inquiry under assets is estimated at around ~100 Justice B N Srikrishna approves Brexit Bill crore. But, their market value could British Prime Minister Boris Johnson’s be much higher at around ~800 Brexit legislation cleared its final hurdle crore, said a source in the enforce- 2019 in the House of Commons, putting an end ment agency. January: Srikrishna panel to the parliamentary gridlock that cost his This will be the first big action in indicts Kochhar, finds violation in predecessor Theresa May her job. the case filed last January, accusing bank's code of conduct Members of Parliament voted 330 to 231 in Chanda Kochhar and eight others favour of the Withdrawal Agreement Bill, for ICICI Bank’s irregularities in sanc- February: ED files criminal case which now passes to the House of Lords. tioning loans to the Videocon group. of money laundering against Johnson wants the measures passed into Prime Minister Narendra Modi and Home Minister Amit Shah at a pre-Budget meeting with A text message sent to Chanda Kochhar, others law before the end of the month so the economists and experts at the NITI Aayog on Thursday. Finance Minister Nirmala Sitharaman Kochhar went unanswered. Chanda Kochhar, former ICICI Bank MD and CEO UK can leave the European Union on was not present because she was holding meetings with party workers at BJP headquarters PHOTO: PTI According to sources, the fed- January 31. BLOOMBERG eral agency will issue a provisional ARUP ROYCHOUDHURY&ABHISHEK WAGHMARE economists and sector experts advised him to keep attachment order of proceeds of were created out of the proceeds of to its complex transaction involv- New Delhi, 9 January aside fiscal concerns and embark on an expanded crime under the Prevention of money laundering. ing Deepak Kochhar and firms COMPANIES P3 spending programme to revive growth. The prime Money Laundering Act (PMLA) by The acquisition of the current linked to Videocon group. Will not face insolvency, rime Minister Narendra Modi said on minister was also advised to restore the credibili- the end of this week. Legally speak- family residence of Kochhar at 45, This complex transaction was Thursday that the fundamentals of the ty of official economic data. ing, this order will be valid for 180 CCI Chambers CHS Limited also highlighted by the ICICI Bank- says Reliance Infra Indian economy were strong, it had the “There were suggestions that while it is good days until a court confirms it and (Churchgate area opposite the appointed panel headed by former Anil Ambani-led Reliance Infrastructure P capacity to bounce to have fiscal discipline, this has allows it to make a final confisca- Cricket Club of India), has been Supreme Court Judge BN (RInfra) will not undergo insolvency back, and the Centre was been a challenging period, given tion on the grounds that the assets under the probe agency’s lens due Srikrishna. Turn to Page 17 > proceedings as it is looking to pay its expecting an economic revival FROM THE EXPERTS the extent of the economic slow- lenders in the next few weeks, said a in the coming quarters. |Boost spending and down, so the markets won’t pun- company executive. RInfra is likely to At a pre-Budget meeting, public investment ish any decision to go for an complete the sale of its Delhi-Agra toll organised by the NITI Aayog, expansion,” a participant told road by January-end and its proceeds with economists, business lead- |Remove policy Business Standard after the meet- Airtelmopsup RBI approves will be used for debt repayment, the ers, entrepreneurs, and sectoral uncertainty in taxation, ing. The person said the prime executive added. “RInfra has received experts, Modi said: “The strong rules and regulations minister was asked about the ways Aadhaar-based in-principle approval for harmonious absorbent capacity of the Indian |Boost exports and take the Centre was planning to earn $10billion,three substitution in the Delhi-Agra toll road economy shows the strength of advantage of US-China revenue next fiscal year. project on January 7 from the NHAI. basic fundamentals of the Indian trade war Another person who attended video KYC economy and its capacity to the meeting said the prime minis- bounce back.” |Corruption in lower- ter was apprised of the importance timesitstarget NEHA ALAWADHI & ANUP ROY He added that sectors like level bureaucracy of credible data on the fiscal bal- New Delhi/Mumbai, 9 January ON tourism, urban development, needs to be removed ance, and urged that the Budget FRIDAY infrastructure, and agri-based should be honest about the real fis- SURAJEET DAS GUPTA FUNDRAISING PLAN The Reserve Bank of India (RBI) on SPECIAL industry had great potential to cal deficit. New Delhi, 9 January Thursday allowed video-based authenti- take forward the economy and for employment Union Home Minister Amit Shah, Road $3 billion cation as an alternative to the accepted e- generation, according to an official statement Transport and Highways Minister Nitin Gadkari, Bharti Airtel on Thursday Issue size KYC (know- PERSONAL FINANCE: Keep released after the meeting. Modi also called for and Commerce and Industry Minister Piyush received offers for subscriptions your-customer) aneyeoncapitalprotection 16 > focused efforts from all stakeholders to achieve Goyal, besides NITI Aayog Vice-Chairman Rajiv aggregating over $10 billion, $2 billion practices, but the target of nearly doubling the size of the Indian Kumar, Chief Executive Officer (CEO) Amitabh three times its target of $3 bil- Through QIP, such verification CHANGES Use these smart strategies to ensure economy to $5 trillion by 2024. Kant and other senior officials of the think-tank, lion, through a combination of and the will be Aadhaar- IN THE decent returns from equity investing, With the prime minister said to be taking direct were in the meeting. qualified institutional place- remaining via based, either writes SARBAJEET K SEN charge of the upcoming 2020-21 Union Budget, Turn to Page 17 > ment (QIP) and foreign curren- foreign currency convertible online or offline. OFFING cy convertible bonds (FCCB), bonds (FCCB) The need for | RBI revises according to banking sources. video-KYC was ~452 QIP floor price per share master direction The issue opened proposed in the on KYC Wednesday and has already | Fidelity, Blackrock, Goldman report of the TAXDEPT ALLOWS SIMPLE | Video KYC will been oversubscribed and Sachs, BNP Paribas, Citigroup, Expert Com- Byju’sovertakesOlaas have to be verified FORMS FOR FILING RETURNS according to banking sources Warburg Pincus, JPMorgan, mittee on Micro, through Aadhaar the allocation of the shares will Axis Capital, ICICI Pru, SBI Small and BY JOINT PROPERTY OWNERS be made next week. Mutual, Aditya Birla Mutual Medium | No foreign app third-largestunicorn According to sources, HFDC Mutual and Temasek Enterprises, is likely to be used Fidelity, Blackrock, Goldman Holdings have offered to headed by UK as data needs to Sachs, BNP Paribas, Citigroup, subscribe to the QIP Sinha, former be stored onshore Firm valued at $8 bn after Tiger Global’s $200-mn funding Warburg Pincus, J P Morgan, chairman of the Axis Capital, ICICI Pru, SBI ~35,000 crore AGR and Securities and | Customerwill BIBHU RANJAN MISHRA Mutual, Aditya Birla Mutual spectrum usage charge dues Exchange Board have to give his Bengaluru, 9 January Byju HFDC Mutual and Temasek which Airtel has to pay by of India (Sebi) in consent Raveendran, Holdings among others have Jan-end June last year. | Geotagging is a EducationtechnologycompanyByju’s islearnt founder, offered to subscribe to the QIP. The panel Byju’s must to ensure tohaveraised$200millioninafundinground For the FCCB portion, offers observed that presence of fromTigerGlobalManagement,whichhas have come from Blackrock, GIC currently for STOCKUP customer in the valuedtheBengaluru-basedstart-upataround Rolling back its week-old order, the income- of Singapore (which has also Airtel(Price in ~) conducting even $8billion,makingitthethird-largestunicorn tax department on Thursday allowed joint offered to subscribe the QIP), e-KYC, the cus- country (start-upvaluedover$1billion)inthecountry. owners of a single-house property to file Barclays, Societe Generale and tomer has to be With this, the Byju Raveendran-founded income tax returns using simple Form-1 Standard Chartered Bank, physically present and the whole process company has seen over 50 per cent jump in its (Sahaj) or Form-4 (Sugam). On January 3, it among others. A Bharti Airtel takes lots of data handling. On the other valuation in just around nine months. In had debarred individual taxpayers owning a spokesperson, however, decli- hand, in video-KYC, the whole process can March 2019, Byju’s was valued $5.4 billion, house property in joint ownership and those ned to comment on the issue. be done simply through a video chat where when it raisedaround $31 million from who paid ~1 lakh in electricity bills in a year GIC of Singapore currently the customer can display documents. Such General Atlantic, and Chineseinvestment VALUATION OF INDIAN or incurred ~2 lakh expense on foreign travel holds around 4 per cent in video-KYC can be done through Google giant Tencent. Figures from filing their annual income returns using Bharti Airtel. Duo or Apple FaceTime, the committee At thecurrentvaluation,Byju’s hasnow UNICORN START-UPS in ($ bn) the simple return forms. PTI Turn to Page 17 > had recommended. Turn to Page 17 > replacedhome-growncab-hailingmajorOla Paytm (Payments) 16.0 asthethird-largestunicorn,nextonlyto Oyo 10.0 PaytmandOYO, whicharevaluedaround $16billionand$10billion,respectively. Byju’s 8.0 Byju’s confirmedthetransactionthrougha Ola Cabs 5.7 pressstatement,thoughthecompany Swiggy 3.3 declinedto shareanyspecificdetailsofthe Udaan 2.8 deal.TigerGlobalcouldnotbeimmediately reachedforitscomments. Zomato 2.5 “Wearehappyto partnerwithastrong ReNew Power 2.0 investorlikeTigerGlobalManagement.They Billdesk 1.8 shareoursenseofpurposeandthis partnershipwilladvanceourlong-termvision Delhivery 1.6 ofcreatinganimpactby changingtheway Source: Companies, reports studentslearn,”saidRaveendran.“This partnershipisbothavalidationoftheimpact start-upspace.Itsportfoliointhecountry createdby ussofarandavote ofconfidencefor rangesfromconsumerfocusede-commerce ourlong-termvision.” companiesthatarevitalforthegrowthofthe This is Tiger Global’s first investment in sector,suchasFlipkart,Delhivery,Grofers, the edutech space in India after Vendantu, QuikrandPolicyBazaar,tomentionafew. an online tutoring platform, where it, along AftertastingsuccesswithFlipkart,oneof with WestBridge Capital, led a $42-million itsearliestinvestments,whereithadpumped round in August. inaround$1billion,thePEmajorisnow AnearlybackerofIndia’s internetgrowth doublingdownitsfocusontheIndian story, theNewYork-headquarteredTiger start-upspace,underitsnewinvestmenthead GlobalhasbeenaprolificinvestorintheIndian ScottShleifer. Turn to Page 17 > 2 COMPANIES MUMBAI | FRIDAY, 10 JANUARY 2020 > Sunteck Realty > Tata Motors > JSW Steel > Max Financial Services > Adani Green Energy STOCKS Signs MoU with SBI to Surpasses M&M in Metal shares gain after Top loser among S&P BSE Ends higher for ninth IN THE NEWS safeguard homebuyers market-cap ranking government eases coal MidCap index stocks straight day; zooms and mining norms 409% in four months

~450.90 CLOSE ~192.05 CLOSE ~278.10 CLOSE ~504.95 CLOSE ~231.70 CLOSE * OVER PREVIOUS CLOSE  6.41 % UP*  5.18 % UP*  6.02% UP*  9.63% DOWN*  4.98% UP* > . IN BRIEF SC to hear Tatas’ HDFC completes majority CCI probing if Maruti forced plea on NCLAT buy in Apollo Munich judgment today Mortgage lender HDFC on Thursday said it has completed the acquisition of majority stake in Apollo Munich Health Insurance buyers to take its insurance PRESS TRUST OF INDIA for ~1,495.81 crore. HDFC bought 50.80 per cent stake of Apollo New Delhi, 9 January Hospitals Group in Apollo Munich for ~1,485.14 crore and ADITI SHAH & ADITYA KALRA 0.36 per cent shareholding of employees for ~10.67 crore. On New Delhi, 9 January The Supreme Court is scheduled to hear on Friday January 2, HDFC had informed that the company and its the petition by Tata Sons (TSPL), challenging the subsidiary HDFC ERGO has got approvals for acquiring a ntitrust regulator Competition Com- decision of the National Company Law Appellate majority shareholding in Apollo Munich. “Subsequent to this mission of India (CCI), is looking into Tribunal (NCLAT), restoring Cyrus Mistry approval (regulatory), Apollo Munich Health Insurance Co has A allegations that Maruti Suzuki, the (pictured)as executive chairman of the Tata Group. been renamed as HDFC ERGO Health Insurance (HDFC ERGO Health) country’s biggest carmaker, pushes buyers to The matter is listed before a Bench of Chief and will operate as a subsidiary of HDFC,” HDFC said in a purchase insurance policies offered by the Justice S A Bobde, and Justices B R Gavai, and regulatory filing on Thursday. company, two sources told Reuters. Surya Kant. Sources said Tatas’ have roped in sen- PTI< The CCI in June last year received an ior advocate Abhishek Singhvi, anonymous complaint alleging insurance Harish Salve, Mukul Rohatgi, plans recommended by Maruti while selling and Mohan Parasaran to argue Removing Airtel Centre asked to stop cars resulted in customers paying more com- the case. “We will seek stay of from ratings watch disinvestment by pared with other options in the market. the NCLAT decision in toto,” depends on SC: Fitch Bridge and Roof Based on the complaint, the CCI is assessing one of the sources said. whether Maruti has engaged in so-called The CCI in June last year received an anonymous complaint regarding insurance plans TSPL has challenged the Fitch Ratings Citing doubling of the order ‘tie-in arrangements’, in which a carmaker recommended by Maruti December 18 decision of the on Thursday book and rise in profitability, promotes preferred suppliers of comple- NCLAT that gave a big relief to said removing Bridge and Roof Company India mentary goods such as lubricants or insur- antitrust investigation in India. Last year, up arrangements against Maruti is similar Cyrus Investments and Bharti Airtel (B&R) is considering writing to ance, the sources said. the CCI ordered its investigations unit to to an earlier complaint against its competitor, Mistry, restoring him as the from its the Centre, asking to reconsider According to the law, such practices are probe allegations the carmaker limits dis- South Korean Hyundai Motor, a third source executive chairman of TSPL. Rating Watch the disinvestment plan. In anti-competitive if they end up stifling com- counts its dealers can offer, a prohibited anti- aware of the complaint said. Cyrus Investments, Mistry, Negative 2016-17, the Centre had first petition and limiting consumer choices. The competitive practice if it hurts consumers. If In 2014, following a complaint from a car and other respondents who have filed a caveat that (RWN) will depend on the mooted the plan to divest its Commission is looking into the complaint the CCI decides to launch a wider probe into dealer, the CCI found initial merit in the no ex-parte order be passed in the matter will be rep- Supreme Court ruling, on a 99.35 per cent stake in this and “it will take a while”, said one of the two the new complaint, it could ask its investi- allegations that Hyundai had entered into resented by senior advocates C A Sundaram, Arvind review petition filed by telecom engineering, procurement sources, who declined to be named as the gation unit to wrap it into the ongoing case several tie-in arrangements, including to Datar, Shyam Divan, and Somasekhar companies against being asked and construction Miniratna case details are private. into Maruti’s discounting practices, or order promote certain insurance companies, and Sundareshan. The NCLAT also ruled that the to pay backdated statutory company and invited In response to Reuters questions, a Maruti a fresh investigation, the second source said. ordered a wider investigation. However, in appointment of N Chandrasekaran as head of the dues after considering non- expression of interest from spokesman said: “We are not aware of any It was not clear over what period the its final order in 2017, the CCI said holding company of the $110-billion conglomerate telecom revenues. Fitch investors in 2018. BS REPORTER< such alleged complaint that is being investi- anonymous complaint about insurance Hyundai’s insurance arrangements were was illegal. The Tatas submitted the verdict by the assigned a rating of ‘BBB-’ gated by CCI and therefore, cannot comment sales relates to. Maruti, majority-owned by not anti-competitive. “The most credible NCLAT “undermined corporate democracy” and to the firm’s proposed US on the same.” The CCI did not respond to a Suzuki Motor, is a market leader in India way for Maruti to show there is no tie-in the “rights” of its board of directors. dollar senior unsecured British Airways to request for comment. The watchdog can still with a 50 per cent share of the passenger would be by providing actual data on While the petition has been pending, Mistry convertible notes. PTI< connect London throw the complaint out if it finds no merit in vehicles market. Maruti car buyers opting for insurers other came out with a statement saying that he is not the allegation, or order a deeper probe by its It sold 1.73 million cars in the financial than those recommended by it,” said interested in returning and the decision was made with Bengaluru investigations arm. year ended March 2019 and has around 3,600 Rahul Rai, a New Delhi-based lawyer in the interest of the group, whose interests are far Mastek arm offloads British Airways on Thursday Maruti is already the subject of another sales outlets. The allegation of insurance tie- specialising in antitrust law. REUTERS more important than the interests of any individual. stake in Majesco announced the launch of its USA to drive growth state-of-the-art A350 aircraft with the club suite from N IN TOP GEARN Mastek on Thursday said that its Kempegowda international arm Mastek UK had sold partial Airport from Bengaluru to stake in Majesco USA for a cash London’s Heathrow Terminal consideration of $1.59 million 5. The daily flight from (about ~11.3 crore).”Mastek UK Bengaluru to London, which ‘Tata Motors will get back M&M to drive EV plan (material wholly-owned arm started from January 1, is of Mastek) intimated us about marked by sophistication, sale of its partial holding of luxury, privacy and branded via shared mobility 2,02,183 shares in Majesco USA business cabin called Club Suite to growth path by H2 FY21’ for cash consideration of $1.59 with luxurious flat-bed seats, ARINDAM MAJUMDER million, in the open market on British Airways head of sales, SHALLY SETH MOHILE limited. Butschek says if these norms New Delhi, 9 January NASDAQ on January 8, 2020,” (Asia-Pacific and Middle-East) Mumbai, 9 January had taken effect in 2021 and a scrap- the IT firm said . PTI< Moran Birger said. PTI< page scheme from April 1, the CV Automobile entity Mahi- Tata Motors expects the automobile industry wouldn’t have suffered so ndra & Mahindra says industry to turn around in the sec- much, as each would have compen- shared mobility will be ond half of financial year 2020-21 sated for the other. the base of its electric (FY21). This would be after the His concern on CVs is in the mobility plan. switch from BS-IV to BS-VI emi- backdrop of a slowing economy “This is in tune with sison rules is complete and the and overall slowdown in con- government policy. The FLIGHT central government’s effort to sumption, prompting fleet opera- company is working with turn around the economy starts tors to put off buying of new trucks state governments and OF HOPE paying off, said Guenter or replacing of existing ones, fleet operators to make Butschek, managing director. despite deep discounts. electric mobility viable. Airlines return to double-digit Tata, the country’s largest in the The crucial transition to BS-VI, Mahindra now has “The company is working with states and fleet growth 1st time since Jan 2019 segment by sales revenue, says it from April 1, is another worry. It is 22,000-23,000 electric operators to make electric mobility viable. will begin introduction of its BS-VI expected to disrupt the CV industry vehicles (EVs) on ground,” We have 22,000-23,000 EVs on ground” range with passenger vehicles in a big way, given the higher pric- said Pawan Goenka, man- PAWAN GOENKA (PVs), starting this month. There ing of vehicles with the new emis- aging director. MD, Mahindra & Mahindra will be four global unveilings, 14 sion technology. Unlike PVs, the EVs, believes the com- commercial, and 12 PV displays at transition in CVs will come with pany, can take off faster in According to a report the world. In November 2019, Indian airlines experienced a return to the coming Auto Expo 2020, in multiple variants, trim levels and the shared mobility seg- from Bloomberg NEF, Mahindra will be double-digit growth for the first time since January 2019, as Greater Noida. body types. This makes the exer- ment. Goenka also notes shared mobility services launching its ATOM traffic rose 11.3 per cent, compared to November 2018, the “We are going to get back to a GUENTER BUTSCHEK cise quite complex. many states have started will adopt EVs faster than Electric in the third quarter International Air Transport Association said on Thursday. growth path. Am being cautiously MD & CEO, Tata Motors The transition is an opportunity procuring electric buses, private owners. By 2040, of 2020-21 for a shared “However, economic growth in the third quarter was the optimistic; the second half of FY21 to “recalibrate the transaction with at least 4,000 of these around 80 per cent of the mobility fleet entity. weakest in around six years amid a broad-based slowdown should be realistic,” Butschek, lead- IT’S THE RETAIL THAT price” (sale price) of CVs, said to be on road this year. global ride-sharing fleet By this March, it also that is affecting many sectors of the economy. This will ing Tata Motors India operations for SHOULD TRIGGER Butschek, alluding to the practice of Mahindra Electric has will be attributed to EVs; plans to localise produc- present a more challenging environment for the industry, four years, told reporters. sale at deep discounts. While high been in partner- the present ratio tion of EV parts in India going forward,” said IATA, which represents around 290 He says the PV market could see WHOLESALE AND discounts to clear old stock is fine, it ship with electric Goenka says is only 1.8 per (however, this excludes airlines comprising 82 per cent of global air traffic, measures growth earlier, if the current trend of WHOLESALE SHOULD cannot become routine and be fleet provider many states cent (including battery cells). The compa- passenger growth in revenue passenger kilometres (RPKs), monthly improvement in retail sales done to buy market share, he Lithium Urban have started taxis, ride hail- ny will be manufacturing continues. However, a real break- TRIGGER PRODUCTION. added. “It’s retail that should trigger for five years, procuring ing and car shar- motors, chargers and which is calculated by multiplying the number of people to through in volumes will be in the OTHERWISE, WE WILL wholesale and wholesale should covering 100 mil- electric buses, ing). Attractive assembling batteries at its the distance travelled by them. COMPILED BY ANEESH PHADNIS festive season, he adds. trigger production. Otherwise, we lion e-kms, it with at least economics, it Bengaluru factory, where it HAVE DISCREPANCY Top air passenger markets in November 2019 Butschek remains cautious on will have a discrepancy between says, in the 4,000 of these says, will push has invested ~250 crore. the commercial vehicle (CV) seg- IN DEMAND demand and supply.” Bengaluru-based to be on road the ratio. Mahindra has also Domestic traffic in India rose the most in the world ment, the fortunes of which are Asked if Tata was seeing trans- startup’s fleet. this year It also claims decided to set up a research World share* (%) RPK linked to the economy and regu- AND SUPPLY” porters buy their BS-IV trucks to beat Goenka says that demand for and development (R&D) (% chg YoY) latory changes. He says the seg- the coming price hike of 10-25 per Mahindra is also looking to private vehicle ownership centre in that city, investing ment has “yet to swallow” the cent in BS-VI ones, he said pre-buy- electrify radio taxi opera- will gradually reduce and close to ~500 crore. The US 14.0 ] 2.4 ] impact of 2018’s axle load notifi- 2018) increased the freight capacity ing had started but not by as much as tor Meru’s fleet, although shared mobility see a mul- R&D is aimed at manufac- China 9.5 5.3 cations and needs intervention of operational trucks by 20-25 per one expected at the beginning there is no deadline. ti-fold hike. Currently, at ture of high voltage batter- India 1.6 ] 11.3 like a scrappage policy to revert cent. It impacted inter-state move- (April 2019) of this financial year. Mahindra acquired a 55 per least a billion people are ies and high power starter to a growth path. ment of trucks, the bulk of primary Truck sales in India have been cent majority stake in Meru said to use some form of a motors, among other EV RPK: Revenue passenger kilometre measures actual passenger traffic; *% of industry RPKs in 2018 Source: IATA The revised axle norms (July freight and where overloading was skidding since June. during September 2019. ride-hailing app across components. Data subscriber additions and ARPU growth may dial in cheer But tariff hikes will not translate instantly into ARPU growth SCOPE FOR GROWTH the past quarter are likely to result in significant churn. ROMITA MAJUMDAR the introduction of IUC top-up vouchers,” noted Estimates of QoQ for Q3 “For Jio, we expect ARPU to increase to around Mumbai, 9 January Naval Seth, research analyst, Emkay Global  Airtel  Vodafone Idea  Jio ~123 (versus ~120 in F2Q20), leading to 9 per cent in a report. The analyst, however, notes that there QoQ revenue growth. We expect Ebitda margin to Revenue 6.4 The October-December quarter is likely to yield will be little impact of the tariff hike in the third improve QoQ, benefiting from revenue growth healthy operational performance for telecom quarter as subscribers would have recharged growth 1.7 and lower interconnect costs, partly offset by operators with data adoption, subscriber addition, ahead of the hikes. (%) 8.4 increase in network costs,” noted Parag Gupta, and average revenue per user (ARPU) showing Estimate ARPU for Bharti Airtel and Vodafone equity analyst, Morgan Stanley, in a report. positive growth. Idea is likely to improve by 6 per cent and 7 per Data 12.0 With IUC charges across telcos now, the Incumbent telcos are expected to cent quarter-on-quarter (QoQ), respectively. Jio’s subscriber 4.0 incumbents are not likely to see significant IUC report revenue growth, following growth might be impacted slightly due to the new growth (%) 5.9 benefits this quarter, but tariff hikes will drive higher data usage and data charges, noted Seth. numbers. However, the full impact of tariff subscriber addition, while “We expect Vodafone Idea to report subscriber hikes will be spread over two quarters as a benefiting from interconnect base decline of 5 million on integration, led by ARPU 6.0 bulk of subscribers are now opting for three- usage charge (IUC) introduced by network flux, while addition for Airtel is estimated growth 6.6 month recharges. QUARTERLY Reliance Jio. However, the impact around 3 million, as it may benefit from new (%) Vodafone Idea is expected to report the closing RESULTS 1.7 of internet shutdowns across the entrant (Jio) charging for voice and J&K situation phase of subscriber churn to retain users that country and subscriber response to normalising. We see strong data subscriber Source: Emkay Research spent a minimum amount on their subscriber (Airtel India wireless estimates) recent tariff hikes will be watched closely. addition of 13 million and 5 million for Airtel and identity module. Analysts will look for “Incumbent telecom operators are expected to Vodafone Idea, respectively,” wrote Sanjesh Jain, commentary on incremental adjusted gross see sequential improvement in wireless revenue, research analyst, ICICI Securities. and earnings before interest, taxes, depreciation, one-off benefit in the second quarter of 2019-20. revenue provisions, ARPU growth and strategy driven by healthy data subscriber addition, Airtel’s India revenue is expected to grow and amortisation (Ebitda) will likely decline 2.1 per For Vodafone Idea, revenue is likely to rise to further maintain it as well as subscriber resumption of services in Jammu & Kashmir 3 per cent QoQ (7.2 per cent year-on-year) to cent QoQ to ~62 billion on normalisation of selling, 1.5 per cent QoQ to ~110 billion, on better ARPU. movement as higher tariffs require further (J&K), and some voice traffic shift from Jio due to ~159 billion, mostly led by the mobile segment, general, and administrative cost, which had However, the operator’s network issues during consolidation in the market. MUMBAI | FRIDAY, 10 JANUARY 2020 COMPANIES 3 . < Won’t face insolvency, Govt gives tax breather to airlines Fuel throughput charge scrapped; had set up a committee in 2019 says Reliance Infra to rationalise taxes on jet fuel, carriers to save ~500 crore a year which are among the highest in AMRITHA PILLAY with the payment of ~1,700 crore to lenders, the region. On their part, airport Mumbai, 9 January RInfra would not need to go through an ANEESH PHADNIS & In addition, various taxes operators had asked the gov- insolvency process. ARINDAM MAJUMDER such as GST and VAT are levied ernment not abolish FTC due Anil Ambani-led Reliance Infrastructure (RInfra) In a disclosure to the exchanges, RInfra Mumbai/ New Delhi, 9 January on the FTC, pushing up the to an ongoing litigation. will not undergo insolvency proceedings as it is pegged its current default amount at ~1,048.70 cost. “For every ~100, tax com- The ministry said the FTC, in looking to pay its lenders in the next crore. The disclosure said the total he fuel bill of airlines is ponents including GST and its all its manifestations, shall few weeks, said a company execu- amount outstanding as on date in set to reduce as the civil VAT push up the cost by ~60. be discontinued at airports, tive. RInfra is likely to complete the terms of loans and revolving facili- T aviation ministry has Airports are not providing any airstrips, and heliports with sale of its Delhi-Agra toll road by DEBT ties was ~4,597.06. The company’s ordered discontinuation of the kind of service in return. Why immediate effect. The ministry January-end and its proceeds will BURDEN financial indebtedness, including fuel throughput charge (FTC) should we pay for that? said airports will be compen- be used for debt repayment, the short-term and long-term debt, was collected by airports from oil Abolishing throughput charges sated during tariff fixation, and executive added. ~6,073.66 cr ~6,073.66 crore. companies. is a big impetus at a time when charges will be recalibrated fac- “RInfra has received in-princi- Total financial In July, the company entered People in the know said the oil prices are rising,” said the Airports levy fees such as FTC, infrastructure charge, and toring in the revenue loss. ple approval for harmonious sub- indebtedness into an inter-creditor agreement move will help airlines save CEO of a private airline. into-plane charges on sale of jet fuel “The order will bring imme- stitution in the Delhi-Agra (DA) toll ~4,597.06 cr (ICA) with its lenders, which close to ~500 crore per year. Fuel “It was seen that the global diate relief to airlines but we will road project on January 7 from the Outstanding loans allowed for a standstill arrange- is one of the highest cost com- best practices at airports avoid The move will negatively ment to scrap it on the lines of have to see what impact it caus- National Highways Authority of and revolving ment for six months. The tenure ponents for airlines. levying a double charge by way impact cash flows of airports Europe. Airlines have also com- es on overall airport charges,” India (NHAI). This approval paves facilities ended earlier this month. “The Airports levy charges such of land rental on fuel suppli- in the near term, but operators plained of double taxation as said an airline executive. the way for closing the sale,” the ~1,048.70 crore default amount is as FTC, infrastructure charge, ers for the use of the land at will get compensated during both airports and oil companies The Mumbai and Delhi air- company said in a statement on ~1,048.70 cr for the period between July and and into-plane charges on sale the airport, and a market tariff revision. collect tax in the process. ports have challenged the Thursday. Current default December,” the executive said. of jet fuel. The levy is passed access or concession fee for FTC has been a source of dis- “IATA is opposed to airports Airport Economic Regulatory In March 2019, RInfra had amount The RInfra statement added, ” through to airlines, pushing up providing commercial oppor- pute between airlines and air- levying charges on aviation fuel Authority’s decision to treat FTC agreed to sell the Delhi-Agra road This (the payment from the deal costs. FTC varies from airport tunity when there is no under- port operators for 10 years now. services that are not cost-related as aeronautical charges. The air- project to Cube Highways and ~1,700 cr proceeds) is in line with the com- to airport. At Mumbai airport, lying tangible service being Global carriers Emirates and Air and justified,” wrote the global ports contend that these are Infrastructure for an enterprise Cash proceeds mitment made by RInfra to its 16 ~1,000 is levied per kilolitre of jet rendered by the airport opera- France, too, had opposed the lobbying firm for airlines in its non-aeronautical in nature and value of ~3,600 crore. Of this, ~1,900 expected from lenders on July 6, 2019, when the fuel. A kilolitre of ATF is priced tor,” the government said in charges. Airlines have opposed letter to the government. should be outside the regulato- crore will move as special purpose road asset sale lenders signed an ICA for the reso- at ~64,529 in Mumbai. the circular. the levy and urged the govern- The civil aviation ministry ry tariff fixation process. vehicle (SPV) debt to Cube Source: Company lution of the debt and granted Highways. RInfra is expected to announcement moratorium to the company on the receive ~1,700 crore as considera- interest and principal payments.” tion for its equity component in the project. RInfra has set a target to be debt-free at the “100 per cent of the proceeds will be used by standalone level in 2020. In its earlier state- Amazon founder Jeff Bezos Ashok Leyland partners ABB Power RInfra to pay the lenders and reduce the debt ments, the company said it was looking to mon- of the company,” the statement said. etise its Mumbai office property through long- to visit India next week Products for electric bus development The executive mentioned earlier said term lease as part its debt reduction plan. PRESS TRUST OF INDIA Hinduja Group flagship firm expand eco-system for effi- get on and off the bus. “This New Delhi, 9 January Ashok Leyland and ABB Power cient and greener electric bus avoids the need to take the Products and Systems India on transportation systems in vehicle out of service for Amazon founder and CEO Thursday announced a part- India, the companies said. recharging every few hours or RCom CoC to seek 24-day extension for asset sale Jeff Bezos will be visiting nership for co-operation in The partners aim to devel- having a replacement bus SURAJEET DAS GUPTA ready to pay cash upfront in India next week and is likely public electric mobility space op a pilot electric bus based ready, thus minimising the New Delhi, 9 January 60 days. It is not interested in to meet Prime Minister with plans to develop electric on ABB's innovative flash- size of the fleet while increas- the two other companies that Narendra Modi and officials, bus that can be charged within charge technology, TOSA, ing passenger carrying capac- The committee of creditors have the spectrum and real besides industry leaders, seconds. which tops up the battery in ity," the statement said. (CoC) tasked with finding buy- estate assets. according to sources. The partnership aims to just seconds while passengers PTI ers for the Anil Ambani-pro- The other bidders include The top executive will also moted Reliance Communi- Bharti Airtel, Värde Partners attend SMBhav – an event cations and its two arms and UV Asset Reconstruction focussing on small and medi- decided at a meeting on Company (UVARCL). How- um businesses in India - that merce marketplaces with for- Thursday to seek an ever, it is believed none of the is slated for January 15-16 in eign investment. These rules extension of 24 days from other bidders are ready to give the capital city. When con- barred such platforms from the National Company a reasonable upfront payment tacted, Amazon declined to offering products of sellers in Law Tribunal (NCLT) to com- The creditors have to recover to buy the company. comment. Amazon, which which they hold a stake and plete the process. ~33,000 crore of secured debt The creditors have to has seen significant growth in banned exclusive marketing Banking sources involved through the IBC process recover around ~33,000 crore its business in India, has also arrangements among other in the process of sale of the of secured debt through the witnessed protest from a sec- clauses. Following this, companies — Reliance Com- tion of the sale ends on Insolvency and Bankruptcy tion of traders in the country Amazon restructured its joint munications, Reliance Tele- January 10. However, though Code process. Yet the offers who claim that e-commerce ventures to ensure compliance. com Infrastructure, and Relia- various offers have come for would force them to go for a giants including Amazon and Bezos is likely to discuss nce Infratel, which houses the the companies, the CoC has large hair cut. Bankers say it Walmart-owned Flipkart offer regulatory issues in his meet- tower and fibre assets — say not come to a final decision. might be better if the company deep discounts and engage in ing with the government offi- they are expecting the exten- Reliance jio has made an is out under liquidation and unfair business practices. cials. He is also slated to sion to be granted soon. upfront offer to buy Reliance assets sold in parts to get bet- Last year, the government engage with SMBs during the The deadline for comple- Infratel for ~3,600 crore and is ter value. had tightened rules for e-com- SMBhav event.

Proxy advisors ask for Sterling Uber India announces and Wilson Solar exit offer new safety features AMRITHA PILLAY NEHA ALAWADHI Mumbai, 9 January New Delhi, 9 January

Proxy advisory firm InGov- Uber announced the launch ern on Thursday asked Sebi of new safety features for the to force the Sterling and India market on Thursday. Wilson Solar promoters to The first one, RideCheck, provide an exit offer to its will enable the company to shareholders. The firm, in its note trip irregularities such report, added failure of time- as long or unexpected stops ly repayment of debt or midway drops that might amounts for changes in indicate an increased safety objects of the public offer. risk, especially for women. “While the objects of the “If an anomaly is detect- initial public offering (IPO) ed, Uber will send a push were to enable the promoters notification to both driver to repay loans amounting to and rider, through the safety ~2,563 crore to Sterling and blue shield within the app. Rival Ola already offers some of these safety features on Wilson Solar within 90 days They will then see five or six its platform of listing, the Company has options to clarify on the situ- received only ~1,000 crore on ation, such as share location, within the Uber app and may provide a four-digit PIN December 31, 2019, i.e., 133 call 100, reach out to the encrypted. The user will not number to the driver, verbal- days after listing,” InGovern Uber safety line and so on,” be able to listen to the stored ly. The driver can then start said. It further said, “This is said Sachin Kansal, it senior recording on his or her the trip in the app only when tantamount to change of director for global safety device but may choose to the correct PIN is entered. objects of the IPO from what products. send it to Uber’s customer “We are also working on was stated in the prospectus. The company says the support agents, who will use making this happen wireless- This has resulted in aggrieved feature is now live for about the audio to understand ly — once a user is in close minority public sharehold- half of Uber's users and will what did happen and take enough proximity with the ers.” Building a case for the be available for the other half action. Only Uber will have driver, the PIN number can market regulator Securities within two weeks. Riders access to the audio once the get entered automatically,” and Exchange Board of India have complained of not user sends it. said Kansal. (Sebi) to take action, the being able to get help or “It is a feature we tested in On whether this was a fea- advisory firm in its note being stranded on roads due the Latin America market. ture modelled after Ola, he added, “In this case, where to a cab breakdown and so We want to make sure we said: “Our approach is not to shareholders have suffered on. This feature could keep local regulation in mind follow competition; we are significant erosion in value address some of these. before we pilot it in India,” customer-obsessed. Our fea- of their holdings solely due Uber will also be experi- Kansal said. tures are based on intensity to the non-utilisation of menting with audio record- Final word is awaited on of pain points and we accord- funds as per the objects of ing as a safety feature in the the Personal Data Protection ingly prioritise our product offer of the IPO, Sebi must Indian market this year. This Bill. Once made into law, this roadmaps.” Uber said it has force the promoters to pro- choice will be given to rider will decide the privacy and invested in sensitising the vide an exit offer to share- or driver through their phone personal data protections drivers on its platform, espe- holders at a price according while on-trip. When the trip people would have in cases cially on women's safety, in Sebi (ICDR) Regulations.” ends, the user has the option like these. The third feature is partnership with Manas InGovern pegged the loss to report a safety incident similar to the PIN-verification Foundation. They say at to public minority sharehold- and send the recording. The used by rival firm Ola. Once a least 50,000 drivers in eight ers at ~1,700 crore. “This non- audio file will be recorded rider boards a vehicle, they cities have been sensitised. fulfilment of obligations by the promoters as per the objects of the offer has result- ed in a loss of over 60 per cent in investment value for IPO Odisha okays Hindalco’s ~8K-cr alumina project investors as stock price has JAYAJIT DASH Rayagada in Odisha. With an Hindalco. fallen from the issue price of Bhubaneswar, 9 January envisaged nameplate capacity The alumina refining unit ~780 to ~310 as on January 6, of two million tonnes per ann- is planned at the foothills of 2020.” Shriram Subramanian, The High Level Clearance um, the project is expected to the Kodingamali bauxite lease, founder and MD of InGovern Authority (HLCA), the apex spawn employment for 4,250 currently under OMC’s lease- said, “The Shapoorji Pallonji body to clear investment proj- people. Hindalco will bank on hold. Hindalco has 1,500 acres group should provide an exit ects in Odisha, approved a the Odisha government on for this refinery. Rest 600 acres option for public minority new greenfield alumina refi- raw material for feeding the needed will be made available shareholders. This is a dem- nery unit, proposed by Aditya refinery. This project is sched- by the state authorities. and from minority share- Birla Group-owned Hindalco uled to go on stream in four to This will be Hindalco’s sec- holders and Sebi should force Industries. five years. Bauxite from any of ond alumina refining complex the promoters to provide and It is estimated to cost the leases of Odisha Mining in Odisha after Utkal Alumina exit option for minority public ~8,000 crore, is proposed to Corporation is likely to feed refining project, also in shareholders.” come up at Kansariguda near the planned refinery of Rayagada district. 4 ECONOMY & PUBLIC AFFAIRS MUMBAI | FRIDAY, 10 JANUARY 2020 “In a republic, the power should reside with the “The government is using dictatorial policies. What “If we hold talks under the present scenario, I will people who have been voted to power. This happened in JNU is being opposed across the surrender my seat or BJP won’t contest the next (not having statehood status) is neither good country. The government's dictatorship needs to polls. The clause of the CAA, the protesters are for the country nor for the national capital” be answered with Gandhiji's way of non-violence” against or want to talk about, does not exist” ARVIND KEJRIWAL SHARAD PAWAR HIMANTA BISWA SARMA Delhi chief minister NCP chief Assam minister

> . DEEPENING TIES Where’s FM, asks Oppn as PM holds pre-Budget meet FM to present ‘pro-people Budget’ on Feb 1: BJP consultations with different stake- holders on the Budget preparation. ARCHIS MOHAN The finance minister’s office Sitharaman held four rounds of meet- New Delhi, 9 January replied: “Sir, the minister has already ings with the BJP leaders for their feed- met economists on December 20 as a back from the consultations. Around the same time Prime Minister part of the pre-Budget consultations.” BJP Working President JP Nadda, Narendra Modi held a meeting with The Congress Twitter handle post- general secretaries Santhosh, Bhup- economists and others for pre-Budget ed messages that highlighted her ender Yadav and Arun Singh, and par- suggestions, Finance Minister Nirmala absence from the meeting. “How many ty's spokesperson on economic affairs, Sitharaman on Thursday separately men does it take to do a woman’s job?” Gopal Krishna Agarwal were among interacted with Bharatiya Janata Party it said in a tweet hashtagged “finding those who attended the meeting. (BJP) leaders, giving ammunition to Nirmala”. “Here’s a suggestion, next The four party meetings attended the Opposition to attack her absence Budget meeting, consider inviting the by Sitharaman, included one each with External Affairs Minister S Jaishankar with his Sri Lankan from the PM’s event. finance minister,” it tweeted. Finance Minister Nirmala Sitharaman in a pre-Budget meeting with BJP’s BJP office bearers, spokespersons, and counterpart Dinesh Gunawardena before a meeting at “What is going on here? Finance Union Minister Prakash Javadekar national office-bearers, spokespersons, Morcha members, and think tanks, functionaries of various ‘morchas’ like Hyderabad House, in New Delhi on Thursday PHOTO: PTI Minister indisposed?” Congress leader termed the Congress’ tweets on the FM at BJP headquarters in New Delhi on Thursday PHOTO: PTI those working with farmers, youth, and Shashi Tharoor said in his tweet which as “sexist”. He said the comment was women among others. showed photograph of the PM's meet- absolutely unnecessary in a civilised and asked if she agrees with her party’s fidence that a “pro-people” Union “Prime Minister Narendra Modi has ing. “Where is the finance minister? Or society and sought an apology from view on Sitharaman. Budget will be presented on February 1. been running a government dedicated IN BRIEF has the duo (Modi and Home Minister the opposition party. At its interaction with Sitharaman The BJP, under the leadership of its to people’s welfare. This is the agenda of Amit Shah) forgotten they have one,” Javadekar said the Congress was at the party's national headquarters in general secretary (organisation) B L the government and that of the party as Axis Bank to hire 4,000 in March he tweeted. headed by a woman (Sonia Gandhi) the afternoon, the BJP expressed con- Santhosh, had undertaken month-long well,” Singh said. quarter; add 30,000 in 2 years Axis Bank says it will hire 30,000 people in the next two years, including at its India distracted subsidiaries. Gross hiring till Budget maths won’t be hit last month was 28,000 employees, as compared to by ideological 14,500 a year before. Net new hiring was 12,800 as measured that month, as compared to 3,000 till the earlier December. The if oil is below $70: Analysts bank plans to add another 4,000 in the March quarter, much of considerations: this in semi-urban towns and rural India. Around 800 employees ARUP ROYCHOUDHURY have been added in an additional unit which is working on New Delhi, 9 January intelligent automation across banking operations, using artificial intelligence, machine learning, big data and RPA (Robotic Process n top of the sustained Nouriel Roubini Automation). The bank has 75,000 employees in all; the total was economic slowdown 60,000 a year before. However the bank has reported two percent O that the Narendra PRESS TRUST OF INDIA spike in its attrition. As of last month, staff attrition in the financial Modi government has to factor Mumbai, 9 January year was 19 per cent; it was 17 per cent a year before. BS REPORTER< in as it readies the 2020-21 Union Budget, there is also the Indian policymakers have been uncertainty of further flash- “distracted” by ideological points in the West Asia and the considerations, when the Need 6.3% labour Sale of 13th tranche resultant impact on crude oil economic slowdown deserves productivity for 8% of electoral bonds prices. the most attention, American Analysts and economists, economist Nouriel Roubini GDP hike: Ind-Ra from Jan 13: FinMin however, say that as long as said on Thursday. India Ratings and Research The finance ministry on crude prices stay below the $70 Foreign investors get “wor- on Thursday said that the Thursday said 13th tranche a barrel level, neither the ried” by scenes of protests on According to US economist country will have to increase of electoral bonds sale will Centre’s Budget maths nor the streets, the professor at New Nouriel Roubini, the Indian its labour productivity take place from January 13 inflation trends will be affect- York University’s Stern School economy is in a slowdown growth to 6.3 per cent to to January 22. Electoral ed adversely. And going by the of Business said, warning that and the declining growth will attain 8 per cent economic bonds have been pitched recent statements from global EXPERTSPEAK economic slump can make a “probably stabilise” in 2020 growth. The labour as an alternative to cash leaders, including US regime unpopular.   productivity growth in FY19 donations made to political President Donald Trump, a de- Expect adverse impact be upended and Global economy weak, The comments from and is instead distracted by was 5.2 per cent. "India will parties as part of efforts to escalation is being sought, if crude prices go inflation will shoot up will not withstand Roubini come at a time when political things, ethnic things have to raise its labour bring transparency in which is good news for budget- above $70/bbl for a  However, Opec and US another oil shock official data showed that GDP and other things to do with ide- productivity growth to 6.3 political funding. PTI< makers. sustained period want oil prices to  Signs of de-escalation growth may to slip to 11-year- ology,” Roubini said. per cent to achieve 8 per cent “We would be okay if the  Budget calculations will stay low in West Asia low of 5 per cent this fiscal, and Uncertainties are not GDP growth. And to attain budget-makers have assumed amid growing protests across good for the economy, he nine per cent growth, labour Oriental Bank average crude price for the the country against the said and referred to President productivity growth will cuts MCLR by coming fiscal year between Kumar Pant, chief economist that Washington and Tehran Trump’s messaging in the run- Citizenship Amendment Act, Bill Clinton’s famous phrase have to be raised to 7.3 per $65-70 a barrel for their fiscal with India Ratings. were headed for military con- up to the Presidential elections which critics allege as being dis- ‘It is the economy, stupid!’ to cent," India Ratings and up to 0.15% arithmetic. The critical point Oil sank to the lowest level frontation. There’s been virtu- is an acknowledgement that criminatory against the warn that the policies adopt- Research (Ind-Ra) said. PTI< State-owned Oriental Bank of is that the fiscal in a month after ally no impact on the supply of he wants to de-escalate,” said Muslims. “The macroeconom- ed may not pay political div- Commerce on Thursday anno- arithmetic needs to shedding all of its oil to the market. Rao, adding it was in nobody’s ic policies are not where they idends as well. “You may be unced to cut the marginal cost get more credible,” gains from the US- West Texas Intermediate interest to let oil prices rise. should be, structural policies popular initially because of Justice Dilip Bhosale of funds based lending rate said Shubhada Rao, Iran clash as traders for February delivery weak- “Global recovery is nascent are not where they should be,” politics and ideology but if resigns as member (MCLR) for various tenors by chief economist at waited to see ened 80 cents to $58.80 a bar- and further flashpoints may Roubini said, while speaking at the economy slows down, you 0.05-0.15 per cent. The bank YES Bank. whether any further rel on the New York Mercantile also affect US recovery. The an event organised by CFA will be losing your populari- of Lokpal has decided to reduce the “The economy hostilities will dis- Exchange, after climbing as global economy is still not in a Society India. ty,” Roubini said. Justice Dilip B Bhosale has MCLR for different tenors with and the Centre’s rupt exports from much as 1.2 per cent earlier. position to withstand another In a conversation with glob- He said the Indian econo- resigned as member of the effect from January 10, 2020, it Budget calculations the East Asia, Brent futures for March settle- big oil shock,” she said. al brokerage firm Morgan my was in a “slowdown” and country's anti-corruption said in a regulatory filing. are unlikely to be according to ment slipped 66 cents to Pant said any unexpected Stanley’s Riddham Desai, the declining growth will ombudsman Lokpal nine It has cut the benchmark one significantly impacted if crude Bloomberg. $64.78 a barrel on the ICE rise in crude prices in the com- Roubini rued that Indian poli- “probably stabilise” in 2020.He months after he was year MCLR — against which stays below $70 for a sustained Futures in New York Futures Europe exchange, ing months would not only cymakers are focusing on oth- bracketed India among the appointed to the Constit- most of the consumer loans period. Even if it goes above declined as much as 1.6 per after rising as much as 1 per upend Budget calculations by er aspects despite global head- emerging markets where a utional post. “I have ten- are priced — by 0.15 perce- that for a short period, there cent on Thursday after losing cent earlier. expanding the petroleum and winds like the impacts that can growth pick-up is up to two dered my resignation from ntage points to 8.15 per cent. shouldn’t be a big impact. If nearly 5 per cent the day “OPEC region may not fertilizer subsidy bills, but will be caused due to a rise in oil quarters away. the post of judicial member For other tenors from over- crude prices are above that before as President Trump want a serious escalation of a also lead to a rise in inflation, prices amidst the US-Iran con- While speaking on the mon- Lokpal on January 6, from night to 6-months, the MCLRs mark for more than two downplayed the impact of mis- war-like situation because which in turn will force a flict. x“The attention of the pol- etary policy-related aspects, January 12, due to personal have been cut in the range of months or so, then there will sile attacks on American bases their economies may also turn response on the monetary pol- icymakers should have been Roubini also flagged up the reasons,” he said. PTI< 0.05-0.10 per cent. PTI< be a problem,” said Devendra in Iraq. That’s allayed concerns significantly vulnerable. icy front. concentrated on the economy issue of RBI autonomy. In letter, not in spirit? Taking stock of Andhra’s prohibition volumes of around 3-3.2 million cases per rise in liquor prices and the way the Govt’s funds crisis is so severe that it has failed to month followed by the ~120 price unknown brands are pushed, according settle ~2,000 cr it owes liquor and beer suppliers category liquor with around 35 per cent to Suresh Reddy. It was thought that share before the 'phased prohibition was liquor companies had stopped supplies B DASARATH REDDY prohibition, Andhra’s liquor sales would introduced. These two categories roughly when the government withheld Hyderabad, 9 January have been much higher. commanded 75 percent of the total liquor payments but subsequent developments "Even the dip in sales revenues volumes in the state. revealed the actual fact. Andhra Pradesh’s “phased prohibition” registered in the months of September The volumes of lower-category liquor On November 25, a large brewery unit policy has had a strange hangover. Sales and October were not on account of (~ 100-price point) fell by 50 percent while of the UB Group in Srikakulam was shut declined when the government took over prohibition but because retailers did not ~ 120-price category sales increased to 40- down. The reason being that AP Bever- retail business last October to implement lift the stock as their license term was 50 percent of the total volumes, according ages Corporation did not place fresh ord- the policy but people have had to wait ending in September. Any remainder of to the distillery industry sources. The fall ers for the highly popular King Fisher longer as they queue up at liquor stores. stock will have to be surrendered to the in volume growth has significantly come brand owned by the company for unkn- Customers are confused when they government first and (businesses will from the lowest category level. own reasons. Brands owned by interna- find unfamiliar brands on the shelves and have to) wait for the refund for months "There seems to be a conscious tional companies, including Diageo, the ones they know missing, said an afterwards, which no one would like to attempt to push the customers of lower Pernod and Record, disappeared from the onlooker. “Undecided at the first inst- do," said a Vijayawada-based industry category liquor to the next price point shelves in Andhra on December 15. ance, people come back again to join the association leader. Liquor sales declined while pulling the consumers of middle “(The market) system became queue to buy a bottle since the stores are 20.63 per cent and beer 12 per cent in and premium segments to the levels vulnerable as soon as the state filled with labels they hardly recognise,” April-December 2019, matching the After taking over the liquor retail trade, the government opened 3,500 stores —about down below them. There is a talk in the government took over the retail liquor said Suresh Reddy, a resident of Guntur government's claim that the phased 20 per cent fewer since the last excise year lasting October to September government that from April onwards only trade. From December 15, things have who has experience in liquor business. prohibition is working. The numbers are a the ~120-price point will be made gone completely awry. All sorts of deals Chief Minister Y S Jagan Mohan paradox though: sale revenues increased trends that is no way connected to the of anonymity. available at the lower end," a senior are being alleged but we still have to Reddy's has said that he would sacrifice as volumes climbed down, thanks to the stated policy and it is seen where ever Leaving that aside, the pricing and official, who heads the operations of a verify the facts,” said Amrit Kiran Singh, liquor revenues — ranging from ~18,000 increase in liquor prices. governments hold absolute control over repositioning of mass market categories popular mass market liquor brand, told executive chairman of International crore to ~20,000 crore annually — for retail liquor trade. looks largely responsible for the decline in Business Standard on condition of Spirits and Wines Association of India the sake of public good, but phased Meddling with the market After taking over the liquor retail trade, the sales volume. The only evidence the anonymity. (ISWAI). Maharashtra, Kerala and UP prohibition appears to prove otherwise. Liquor ban failed when it was tried out in the government opened 3,500 stores — government can produce to prove the Increasing prices gave the have been trying to build liquor revenues The government’s funds crisis is so undivided Andhra and elsewhere in the about 20 per cent fewer since the last success of the 'phased prohibition' would government a problem: smuggling. The through consumption of premium severe that it has failed to settle nearly country, but chief minister Reddy has excise year lasting October to September. be a decline in sales volumes each year cheapest liquor in Telangana costs ~85, brands, but Andhra is going the other way, ~2,000 crore it owes to liquor and beer said his government would succeed with The government will gradually reduce until the day it entirely stops alcohol sales. but in Andhra it’s ~100 MRP or ~120 if sold says Singh. According to him, ISWAI suppliers for bills pending since mid- its gradual prohibition approach. His stores each year till none exist by 2024. The government, before it illegally at the doorsteps. This 35-rupee member companies would like Andhra August 2019, according to multiple government seeks to curtail the availa- People, however, question the logic in implemented phased prohibition, price arbitrage has already encouraged to follow an indenting system based on sources. bility of liquor before completely banning reducing liquor stores in big towns and increased the price of lower category many enterprising individuals to bring average national market share of each the sale in the last year of its term in 2024. cities but not touching those in rural liquor (90 ml quantity) to ~100 from ~80, liquor from Telangana on bikes and other brand, so that no particular label is Phased prohibition, strange effect But industry insiders say that many areas. "Traveling a couple of more miles in to ~120 from ~100 for the category a notch means to sell and make a living in their unfairly promoted. This system would Revenue from liquor and beer sales grew things that have been happening in the the city to buy a bottle of liquor is not a big above, and to ~140 from ~120 for mid-level neighborhoods, according to a ensure that brand market shares would by around 6 percent at ~18,320 crore up to name of the phased prohibition are either deal as every household will at least have a spirits. The pricing protected, if not businessman who ran liquor stores for continue to be more or less in line with December 31, 2019 compared to ~17,320 not helping the cause or have got nothing bicycle. How would it help reduce the increased, liquor revenue. decades till the government stopped the market shares that existed in crore in the same period previous year, to do with the stated objective. Alleged liquor consumption?" said a liquor The lower, or base-category liquor, giving retail licenses in October last year. Andhra prior to the state government according to official data. Without meddling with brands is one of those industry representative said on condition alone had 40 percent share in overall sales Customers are unhappy at the steep taking over the retail trade. MUMBAI | FRIDAY, 10 JANUARY 2020 ECONOMY & PUBLIC AFFAIRS 5 . < ‘Tough times’: SC refuses urgent CAA hearing Delhi Police baton-charge students protesting JNU “You people West Bengal Chief Minister Mamata (Congress and Left Banerjee said in the Assembly she would violence; BJP leader Joshi demands removal of V-C parties) follow one boycott a meeting called by Congress policy in West interim president Sonia Gandhi on ARCHIS MOHAN & PTI implementing the government proposal. Bengal and a totally January 13 over violence and the CAA. New Delhi, 9 January This attitude is deplorable and in my contradictory policy Congress leader Jairam Ramesh opinion such a V-C should not be allowed in Delhi. I do not alleged the JNU violence was “officially he Delhi Police on Thursday to continue in this post.” want to be on the sponsored goondaism” and said Home evening resorted to a baton charge Thousands of students, including same page with Minister Amit Shah and HRD Minister Tto disperse hundreds of students those associated with students’ organisa- you. If needed, I will fight alone Ramesh Pokhriyal were responsible for it. who had gathered in the heart of the tions of the Congress and Left parties, MAMATA BANERJEE The JD(U), headed by Bihar CM Nitish capital to demand the sacking of the marched from Mandi House to Shastri Kumar, asked ally BJP to take action Chief minister, West Bengal Jawaharlal Nehru University (JNU) Bhavan to meet Human Resource against its leaders who had been speaking Vice-Chancellor Jagadesh Kumar, Development (HRD) ministry officials. on issues settled by the brass, violating the reduction in fees, and arrests of perpetra- HRD Secretary Amit Khare said officials times and there was so much violence “coalition dharma”. tors of violence in the university campus. would talk to Kumar again on Friday over that endeavour should be for peace. A One hundred and six retired bureau- The police have not made any arrests yet the students’ claims of revised fee not Bench, headed by Chief Justice S A crats on Thursday wrote an open letter to in Sunday night’s violence by masked being implemented. “The removal of the Bobde, said it would hear the petitions people, saying both the NPR and the NRC goons inside the JNU campus. vice chancellor is not a solution,” he said. challenging validity of CAA when the were “unnecessary and wasteful exercis- Protesting students and teachers The student protests come in the wake violence stops. “There is so much of vio- es” that will cause hardships to them. received a shot in the arm from an unlike- of protests over the contentious lence going on. The country is going Former L-G of Delhi Najeeb Jung, former ly source with veteran BJP leader Murli Citizenship Amendment Act (CAA) and through difficult times and the endeav- cabinet secretary K M Chandrasekhar, and Manohar Joshi, the minister for human National Register of Citizens. our should be for peace... This court’s job former chief information commissioner resource development in the Atal Bihari Refusing to entertain a plea seeking is to determine validity of a law and not Wajahat Habibullah, among others, urged Vajpayee government, demanding that CAA be declared constitutional, the declare it as constitutional,” the CJI said. the public to insist the Centre to repeal JNU students during a protest march demanding removal of the university vice-chancellor, the JNU V-C be sacked. Joshi tweeted: “It Supreme Court on Thursday said the The SC had earlier fixed a batch of 59 relevant sections of CAA 1955, pertaining in New Delhi on Thursday PHOTO: DALIP KUMAR is shocking that the V-C is adamant for not country was going through difficult petitions for hearing on January 22. to the issue of national identity cards. Article 370: SC verdict today on pleas challenging curbs in J&K PRESS TRUST OF INDIA and said that for the past so many the government of “adopting New Delhi, 9 January years terrorists were being double standards” by organising pushed through from across the “guided tours” to J&K for foreign The Supreme Court is scheduled border, local militants and sepa- envoys, but not allowing Indian to deliver on Friday its verdict on ratist organisation had held the politicians to visit the Union ter- a batch of pleas, including that of civilians captive in the region and ritories. The People’s Democratic Congress leader Ghulam Nabi it would have been “foolish” if the Party (PDP) said the visit of Azad challenging the restrictions government would not have tak- envoys was an attempt by the imposed in the erstwhile state of en preventive steps to secure the government to “normalise its Jammu & Kashmir (J&K) lives of citizens. clampdown” in the Valley, dar- following abrogation of provi- ing the Centre to allow the digni- sions of Article 370. Visit of envoys taries to meet the detained polit- A Bench of Justice N The government on Thursday ical leaders. V Ramana, Justice R Subhash said the objective of taking envoys The National Conference said Reddy and Justice B R of 15 countries to it was “disappointed” with the Gavai had reserved Opposition parties Kashmir was to way the government brought the judgment on say the government help them see the envoys from various countries to November 27 last year. is organising guided efforts to bring “endorse” its “claims of normal- On November 21, tours to J&K for back normalcy in cy” in the union territory. the Centre had justi- foreign envoys, the Valley after fied restrictions but is not allowing abrogation of PDP expels eight leaders imposed in J&K after Indian leaders Article 370 and The PDP on Thursday expelled the abrogation of pro- to visit the UT rejected criticism eight party leaders for going visions of Article 370 that the visit is like “against the will of the people” and said that due to the preven- a guided tour. by engaging in parleys with the tive steps taken, neither a single The envoys from 15 nations government. “PDP expels life was lost nor a single bullet including, from the US, began a leaders for going against the will fired. two-day government-facilitated of the people,” the party said in a The Centre had referred to ter- trip to Jammu and Kashmir on press release posted on its US Ambassador to India Kenneth I Juster and envoys from 15 other countries arrived in Srinagar on Thursday on a two-day visit, the first by diplomats since ror violence in the Kashmir Valley Thursday. The Congress accused official Twitter handle. August last year when the state's special status was revoked and it was downsized to a Union Territory PHOTO: PTI

‘Free Kashmir’ poster: Shiv Sena slams Fadnavis for targeting CM The Shiv Sena on Thursday hit Kashmiris by holding the out at BJP leader and former CM placard, the opposition termed Devendra Fadnavis for targeting it as "sedition, the Shiv Sena Maharashtra Chief Minister said, adding that there cannot Uddhav Thackeray over the be a "dirtier example of "Free Kashmir" placard irresponsibility". In remarks displayed by a woman at a laced with sarcasm, an editorial protest in Mumbai against the in Sena mouthpiece 'Saamana' JNU violence. said the placard "shocked the When Mehek Prabhu, a opposition leaders and Marathi woman from Mumbai awakened the nationalist stood up for the pain of sentiment in them." PTI 6 WORLD MUMBAI | FRIDAY, 10 JANUARY 2020 1 > Lebanon bans former Nissan Facebook: Won’t back down boss Ghosn from travelling

LAILA BASSAM & NADINE AWADALLA from allowing lies in ads Beirut, 9 January A Lebanese prosecutor imposed a travel ban on In this presidential election year, no big changes planned in policies governing political advertising former Nissan boss Carlos Ghosn on Thursday, judicial sources said, after he was questioned MIKE ISAAC themselves at scale is a new kind of over an Interpol warrant issued by Japan seek- San Francisco, 9 January force in the world — a Fifth Estate ing his arrest on financial misconduct charges. alongside the other power structures Ghosn fled Japan to Lebanon, his child- acebook said on Thursday that it of society,” he said. hood home, last month as he was awaiting tri- would not make any major Facebook officials have repeatedly al on charges of under-reporting earnings, F changes to its political advertis- said significant changes to its rules for breach of trust and misappropriation of com- ing policies, which allow lies in ads, political or issue ads could harm the pany funds, all of which he denies. despite pressure from lawmakers who ability of smaller, less well-funded The Lebanese judicial authorities also asked say the company is abdicating responsi- organisations to raise money and organ- Japan for its file on Ghosn, including the bility for what appears on its platform. ize across the network. charges against him, and will not question him The decision, which company exec- Instead of overhauling its policies, again until the information is received, one of utives had telegraphed in recent months, Facebook has made small tweaks. the sources said. Carlos Abou Jaoude, a Beirut- is likely to harden criticism of Facebook's Leathern said Facebook would add based lawyer for Ghosn, told Lebanese broad- political ad practices heading into this greater transparency features to its caster MTV Ghosn was "very comfortable" with was also questioned over a formal legal com- year's presidential election. library of political advertising in the com- the proceedings in Beirut. plaint filed against him by a group of Lebanese The company also said it would not ing months, a resource for journalists "He is very comfortable with the path," lawyers who accuse him of "normalisation" end so-called microtargeting for political and outside researchers to scrutinise the Jaoude said, adding that Ghosn was also com- with Israel over a visit he made there in 2008. ads, which lets campaigns home in on a types of ads run by the campaigns. fortable himself "especially after what he went The prosecutor released him with the same sliver of Facebook’s users — a tactic that Facebook also will add a feature that through". The decision issued by the prosecu- condition, that he keep the authorities aware of critics say is ideal for spreading divisive allows users to see fewer campaign and tor, Judge Ghassan Ouiedat, requires Ghosn his place of residence, the sources said. or misleading information. political issue ads in their news feeds, to keep the authorities informed of his place of There was no immediate statement from Political advertising cuts to the something the company has said many residence, the judicial sources said. the prosecutor's office. In his comments to heart of Facebook’s outsize role in soci- users have requested. Ghosn would surrender his French passport MTV, Ghosn's lawyer Jaoude said a statement ety, and the company has found itself There was considerable debate inside to the Lebanese authorities later on Thursday, would be issued by Ghosn's team later. squeezed between liberal critics who Facebook about whether it should one of the sources said after the questioning, Ghosn said on Wednesday he had made the want it to do a better job of policing its change. Late last year, hundreds of which took place at Beirut's Justice Palace, the trip as a French citizen and an executive of various social media platforms and employees supported an internal memo headquarters of the judiciary. Renault to sign a contract with a state-backed conservatives who say their views are that called on Zuckerberg to limit the The Brazilian-born Ghosn said on Israeli firm to sell electric vehicles, and had being unfairly muzzled. wish to lead them, warts and all, and “Our approach is grounded in abilities of Facebook’s political advertis- Wednesday he had escaped to Lebanon to clear been obliged to go because the board had The issue has raised important ques- that what they say should be scrutinised Facebook’s fundamental belief in free ing products. his name and was ready to stand trial any- requested it. He said apologised for the trip and tions regarding how heavy a hand tech- and debated in public.” expression, respect for the democratic On December 30, Andrew Bosworth, where he could get a fair hearing. said he had not meant to hurt the people of nology companies like Facebook — Other social media companies have process and the belief that, in mature the head of Facebook’s virtual and aug- Ghosn said he was ready to stay for a long Lebanon, which deems Israel an enemy state. which also owns Instagram and the mes- decided otherwise, and some had hoped democracies with a free press, political mented reality division, wrote on his time in Lebanon, which does not allow the During the visit, Ghosn met Israel's former saging app WhatsApp — and Google Facebook would quietly follow their lead. speech is already arguably the most scru- internal Facebook page that, as a liberal, extradition of its nationals, and a source close prime minister Ehud Olmert, who was premier should exert when deciding what types In late October, Twitter’s chief executive, tinised speech there is,” Facebook’s head he found himself wanting to use the to the 65-year-old has said his legal team is at the time of the 2006 war between Israel and of political content they will and will not Jack Dorsey, banned all political adver- of global elections policy, Katie Harbath, social network’s powerful platform pushing for him to be tried in the country. the Iranian-backed Lebanese group Hezbollah. permit. By maintaining tising from his network, wrote in the letter to the Biden campaign. against Trump. In addition to the Interpol warrant, Ghosn REUTERS a status quo, Facebook citing the challenges that In an attempt to provoke Facebook, But Bosworth said that even though executives are essential- The company said it novel digital systems Senator Elizabeth Warren’s presidential keeping the current policies in place ly saying they are doing would not end present to civic dis- campaign ran an ad falsely claiming that “very well may lead to” Trump’s re-elec- the best they can with- microtargeting for course. the company’s chief executive, Mark tion, it was the right decision. out government guid- political ads, which Google quickly fol- Zuckerberg, was backing the re-election Dozens of Facebook employees Boeing faces $5 billion tab on ance and see little benefit lets campaigns home lowed suit with limits on of Trump. Facebook did not take the ad pushed back on Bosworth’s conclusions, to the company or the in on a sliver of political ads across some down. Criticism seemed to stiffen arguing in the comments section below public in changing. Facebook’s users — a of its properties, though Zuckerberg’s resolve. Company officials his post that politicians should be held to 737 Max simulator training In a blog post, a com- tactic that critics say is narrower in scope. said he and Sheryl Sandberg, Facebook’s the same standard that applies to other Boeing’s costs would rise an basis that pilots certified for the crashes killed 346 people. pany official echoed ideal for spreading Facebook’s hands-off president, had ultimately made the Facebook users. estimated $5 billion if pilots previous 737 variant would Simulator training would delay Facebook's earlier calls divisive or misleading ad policy has already decision to stand firm. For now, Facebook appears willing to need to get simulator training need minimal additional the return of the aircraft, for lawmakers to set firm information allowed for misleading In a strongly worded speech at risk disinformation in support of unfet- before flying the 737 Max, training, analyst George Ferguson said. The decision on rules. “In the absence of advertisements. In Georgetown University in October, tered speech. according to Bloomberg Ferguson said on Thursday. simulators is up to regulators, regulation, Facebook October, a Facebook ad Zuckerberg said he believed in the pow- “Ultimately, we don’t think decisions Intelligence. That would nearly The manufacturer on who have yet to approve the and other companies are left to design from the Trump campaign made false er of unfettered speech, including in paid about political ads should be made by double the $5.6 billion that Tuesday said it had advised plane’s return. their own policies,” Rob Leathern, accusations about former Vice President advertising, and did not want to be in private companies,” Leathern said. Boeing had committed to cover regulators that pilots need “Our estimates show the Facebook's director of product manage- Joseph R. Biden Jr. and his son Hunter the position to police what politicians “Frankly, we believe the sooner costs from last year’s grounding more than brief tablet-based cost of airline lost profits will ment overseeing the advertising integri- Biden. The ad quickly went viral and could and could not say to constituents. Facebook and other companies are sub- of the jetliner. The firm will be instruction before flying the probably exceed Boeing’s ty division, said in the post. “We have was viewed by millions. After the Biden Facebook’s users, he said, should be ject to democratically accountable rules expected to reimburse airline Max, reversing its previous $5.6 billion reserve just for based ours on the principle that people campaign asked Facebook to take down allowed to make those decisions. on this the better.” expenses for simulator training stance in part because of 2019,” he wrote. should be able to hear from those who the ad, the company refused. “People having the power to express ©2020 The New York Times News Service because it sold the plane on the revisions to the plane after two BLOOMBERG 8 ISSUES AND INSIGHTS MUMBAI | FRIDAY, 10 JANUARY 2020 >

> part of the government’s plans, employees would cram their working hours in a week. CHINESE WHISPERS and is not expected to be gov- work into four days, plus nega- Research has shown that Three-day weekend ernment policy in the near tive impacts on unskilled and employee output falls sharply future. The utter disappoint- zero-hours workers who need after a 50-hour-work-week, and Even Finnish PM Sanna Marin wants it to remain a ment increased after it was the hours to get paid. falls off a cliff after 55 hours — Chacha bhatija ‘together’ revealed that Marin had said This is because employers so much so that someone who statement of aspiration this before becoming the prime can’t afford less than the stan- puts in 70 hours produces noth- minister and it was more a dard full-time workweek of ing more with those extra 15 clear: Having another day with prise as happier employees do statement of aspiration. eight hours per day, five days a hours. This is evidence that no work and no commute can contribute to the company’s There is a reason why the week. If they switch to a four- those extra late nights in the free up personal time in a overall prosperity. In fact, idea of employees working for day week, employees will still office don’t necessarily boost big way, reduce stress and throughout history, productiv- four days for a full-time wage have to work 40 hours at the rate output, and can put even ratio- increase productivity. ity has increased whenever is not feasible. Any reduction of 10 hours per day for four days. nal employees on the edge. Some global companies have labour works fewer hours. in the working days is unaf- So while people may feel The danger is that the CEO already tried this out with great Henry Ford found that in 1926 fordable without a commensu- refreshed by having an extra day would end up with a bunch of results. Microsoft Japan imple- when he became one of the first rate increase in productivity off of work each week, they may multi-tasking, channel-flipping, mented it in August last year and employers to introduce a five- or a matching reduction in pay. also experience a drop in pro- fast-forwarding zombies, who said it boosted sales by 40 per day, 40-hour week. Four years It’s true that employers will ductivity after so many hours at are always banging the lift but- cent compared to the same later, Kellogg reduced factory get some benefits in terms work in a single day. ton without realising that it will month the previous year. There accidents by over 40 per cent of increased productivity, In the U.S., Treehouse, a only stop working. HUMAN FACTOR were other benefits, too. The with the introduction of the six- morale and retention, but no large tech HR firm, implement- But India Inc can hardly With the Citizenship Amendment Act company’s electricity consump- hour day. company would move to a ed a four-day week in 2016, but afford a four-day week as it’s (CAA) setting the political narrative in the SHYAMAL MAJUMDAR tion dropped by a quarter and So is it time for companies four-day week if it is not a prof- as the firm failed to keep up with simply too expensive. country, smaller and fringe parties have there was a 59 per cent reduction to consider shifting to a four- it-enhancing shift. competition, it reverted to a Implementing such a concept found a perfect opportunity to get in the printing of paper pages. day week? The answer, unfor- Another problem is that the five-day week. “It’s simply hard would invariably mean recruit- attention. One such is the Pragatisheel inland’s youthful Prime Others have also done trial runs tunately, would be no. Even four-day working week can be to compete if you’re working 80 ing more people — something Samajwadi Party (Lohia) headed by Minister Sanna Marin has and experienced similar bene- Finland is not planning to do difficult to implement in service per cent of the time your com- which is not economically sus- Shivpal Singh Yadav (pictured). However, F become the darling of fits. Another experiment pub- anything like this. The “thank industries where customer petitors are,” chief executive tainable. So at this point, it’s for the estranged uncle of Samajwadi employees across the world due lished by the Harvard Business you” messages from employees demands need to be met. A Ryan Carson told The better to stick to flexible work- Party chief Akhilesh Yadav, this is also an to her reported support for Review showed shorter work perhaps prompted the Finnish Labour-backed study in the UK Washington Post. ing hours, work from home, etc opportunity to express solidarity with his a four-day week. The employee days increased productivity. prime minister’s office to clarify also warned against increasing Broadly, there is obviously a and let four-day week remain nephew and explore reconciliation with advantages of this are pretty The results are not a sur- soon that a four-day week is not exhaustion as contracted need to bring down the total just an aspiration. the rest of the clan as some put it. Shivpal, aka chacha, recently said that vested interests were “fanning communalism in the name of nationalism under the garb of the CAA” and that his party would make every effort to thwart the nefarious designs of MCA vs NCLAT: Truce or war? such protesters. In saying so, he found himself on the same page as Akhilesh, The National Company Law Appellate Tribunal's latest judgment on the RoC application in the Tata-Mistry case has made who, recently flagged off a cycle march of Samajwadi Party MLAs against the CAA, the fight interesting on many counts National Register of Citizens and National ILLUSTRATION: BINAY SINHA wheels of commerce continue to run? had overlooked the fact that Section Population Register. Is something What is a private company? Can one 43A(4) was repealed way back in 2000. brewing in UP’s first political family? form a private company at present? Can Should RoC follow a current law or a one convert a public into a private one? repealed one? Section 2(68) of Companies Act The NCLAT judgement, has quoted Two in one 2013 defines a “private company” as a Section 18 of Companies Act 2013 also: To separate or not to separate is the company having a minimum paid-up “A company of any class registered dilemma faced by many Indian share capital as may be prescribed. under this Act may convert itself as a promoters whose companies have not The RoC has stated before the NCLAT company of other class...” split the offices of chairman and that no minimum capital has been Section 18 is not applicable to Tata managing director (MD). A firm, which prescribed. In that case, can the RoC Sons because it has not been registered had appointed a head hunter to search J N GUPTA register a private company? Should all under Act of 2013. In the 2013 Act, there for a managing director, has put its companies become public? The logical is no place for hybrid companies such plan on hold and is likely to allow its answer is no. as Tata Sons — private by functioning promoter to continue as chairman and If one goes by para 15 of NCLAT and public by fiction of law. Once the MD. Almost half the top 500 listed n the Tata-Mistry case, the issue judgment of January 6, 2020, it fiction disappears, dual nature auto- companies appear unprepared to meet boils down to this: The Registrar of appears that the RoC does not have matically disappears. the current Securities and Exchange I Companies (RoC) feels that there any power in case the minimum cap- Board of India (Sebi) deadline. On are strictures against it although it had ital is not prescribed. Contempt of NCLAT order? Wednesday, it was reported that Sebi acted within the law. The National “--- in absence of any prescription of NCLAT in its judgment of December was considering relaxing the March 31 Company Law Appellate Tribunal minimum paid up share capital, the 2019, under Para 187(iv), ordered RoC deadline for listed companies to (NCLAT), however, feels that it has not Registrar of Companies has no power or to issue a new certificate of incorpora- separate the positions. cast aspersions on the RoC and has not jurisdiction to carry out any changes in tion to Tata Sons. There was no stay of passed any strictures. the Register of Companies or Certificate order. The RoC has not yet carried out The NCLAT held conversion of Tata of Incorporation ----.” the required changes. It is in Catch-22 Relax! It’s not about JNU Sons from deemed “public” to “private” The NCLAT judgment means that situation: If it does not appeal and External Affairs Minister S Jaishankar’s company as illegal and observed that under the 2013 Act, no private company change registration certificate, it would statement — that the “tukde tukde” gang it was done “with the help of the RoC could be incorporated; all companies accordance with the rules, if any. If rules “[(2A) Where a public company admit it acted illegally. In that case, it did not exist when he was a student at just before filing of the appeal”. The registered as private post the Act, would are framed, the powers so conferred on referred to in sub-section (2) becomes a would be Tata Sons that would drag the Jawaharlal Nehru University (JNU) — in RoC feels it has complied with the law be illegal. authority could be exercised in accor- private company on or after the com- RoC to the Supreme Court and there it response to a question on the recent and hence the use of the word “helped” The NCLAT’s ruling contrasts with dance with these rules. But if no rules mencement of the Companies will be in a precarious position, admit- violence in the university campus amounts to casting aspersions on its the ruling of the Supreme Court in are framed there is no void and the (Amendment) Act, 2000, such company ting that it acted illegally and make expectedly grabbed eyeballs earlier this conduct. It is a Hobson’s choice for Orissa State v/s. M/s Orient Paper Mills authority is not precluded from exercis- shall inform the Registrar that it has arguments totally opposite to that it week. The afterstory was just as both: The RoC cannot accept helping (2003.03.10) where it said: ing the power conferred by the statute..." become a private company and there- made at the NCLAT. And if the RoC interesting. It so happened that Tata in any manner without accepting “...Where a statute confers powers on Therefore no void is created and the upon the Registrar shall substitute the appeals in the SC, it will be continua- immediately after Jaishankar’s remark, that the conversion was illegal, whereas an authority to do certain acts or exer- wheels of commerce can function with- word `private company' for the word tion of war and not truce between MCA the microphone was passed on to a the NCLAT cannot expunge the word cise power in respect of certain matters, out any hitch; the RoC could act within `public company' in the name of the com- and NCLAT. That might be better as it questioner who happened to be a JNU “helped” as it will make the action of subject to rules, the exercise of power its jurisdiction even though the rules pany upon the register and shall also- would save the RoC some embarrass- student. As she identified herself and said the RoC compliant with law, shaking conferred by the statute does not depend had not been framed. make the necessary alterations in the cer- ment. The MCA needs to demonstrate that she was enrolled in the International the foundation of the NCLAT’s order. on the existence of rules unless the tificate of incorporation issued to the that it believes in the interpretation of Relations programme, there was an Hence a royal stalemate. statute expressly provides for the same. Conversion to private company company and in its memorandum of asso- law it has created. awkward silence, followed by nervous In other words framing of the rules is not What is the procedure of conversion? ciation within four weeks from the date Whatever the decision of the RoC, it laughter in the audience. The woman Absence of law? condition precedent to the exercise of the On the procedure part, RoC Mumbai of application made by the company].” will be an interesting battle ahead for clarified that her question was not about Can commercial and corporate func- power expressly and unconditionally asserts that till January 30, 2019, While the NCLAT in para 17 has said all corporate law practitioners. JNU and she proceeded to probe the tion come to a standstill if lawmakers conferred by the statute. The expression Section 43A (2A) of the Act of 1956 was that the RoC had omitted mention of minister on India-China relations. fail to make laws? How should the "subject to the rules" only means, in operative. Section 43A(4), it appears the NCLAT The author is managing director, Stakeholders Empowerment Services

INSIGHT > LETTERS

ing the big ones — identify suitable political unionism more than eco- A royal family spinoff Double standards people for one of the two — chairman nomic unionism. It is not surprising or managing director (MD)/chief then that the top demand of the Allowing some royals to step away from “senior” status makes sense if you executive officer (CEO) — roles but I unions for going on a national strike do hope the “extension” is not a pre- is the repeal of the Citizenship think of the British monarchy as a business cursor to watering down the excellent Amendment Act or CAA. At a time proposal that promises to improve when they have failed to perform SARAH GREEN CARMICHAEL secrecy. And, fairly or not, they struck our corporate governance norms. their primary function of providing people as hypocritical by extolling per- There is, of course, the possibility that job security to their members (as evi- he announcement by Prince sonal efforts to mitigate climate change many corporations will only end up denced by decline in the number of Harry and Meghan Markle — aka while, like most rich people, living a pret- having merely titular/dummy and permanent employees and replacing T the Duke and Duchess of Sussex ty carbon-intensive lifestyle. When their powerless nominees as chairmen and them with temporary hands) their — that they’re stepping back from being celebrity friends rushed to defend them, the MDs/CEOs will continue to exer- proritisation of CAA strengthens the “senior” members of Britain’s Royal it only made the public angrier. cise unfettered control with some belief that they are the obedient arm Family should have come as no great sur- While these may seem like tempests "ineffective" independent directors of their political masters. prise to royal watchers who have in so many gilded teapots, and while This refers to “Mamata to skip oppn on board. But even so, splitting the Moreover, such a nationwide strike watched the pair struggle in the glare of some of the criticisms seem wildly meet; cites violence by Left, Cong top two posts will do a lot of good. does not serve any purpose. Despite the spotlight over the past year. unfair — would we prefer elites who did- during strike in WB” (January 9). It Sebi Chairman Ajay Tyagi neither claims of success supported by a sec- Insiders sometimes call the royals There’s no doubt they’d prefer to keep n’t care about the climate at all? — taken was interesting to learn that West accepting nor denying the “possibility tion of media the reality on the “The Firm,” and perhaps that analogy is the focus firmly on the royals who bur- as a whole, they run the risk of eroding Bengal Chief Minister Mamata of considering a relaxation” creates the ground is otherwise. That said, a con- useful to understanding their desire to nish the family brand. Over the past cou- the Firm’s “customer base.” In other Banerjee (pictured) has announced feeling that there could indeed be a frontation among the two sides — the live, shall we say, a more entrepreneurial ple of years, Prince William and his wife, words, each dust-up has the potential to that she will boycott the Opposition relaxation of the good measure. The government and the unions — is not life. (Buckingham Palace seems to have Kate Middleton — the Duke and make British taxpayers ask, Hey, do we meeting convened by Congress pres- Uday Kotak Committee had made this a good sign when the need is for been caught flat-footed by their pivot.) Duchess of Cambridge — have taken on really need to keep supporting these ident Sonia Gandhi on January 13 to suggestion — to separate the roles of unions, industry and government to The shift is consistent with a long- an increasing number of public engage- toffs? Roughly a quarter of younger Brits protest the violence unleashed in the chairperson and MD/CEO — to work together to stabilise the econo- term strategic plan attributed to Prince ments of the kind the crown would like would like to abolish the monarchy, state allegedly by Left Front and improve corporate governance in India, my. Things have not improved Charles, who has indicated that he to see more of: carefully staged ribbon polls show, and that’s with an enor- Congress workers during a trade a much needed reform in line with because the government has made no favours a slimmed-down monarchy with cuttings, sidewalk meet-and-greets, mously popular Queen about to reach union strike. Various parts of West global practices — and it would be use- serious effort to build consensus fewer people called upon to play the role charity work. They share adorable pho- her 68th year as monarch. Bengal have been witness to massive ful to follow the same for the overall among unions so far to facilitate the of senior executive. He wants the focus tos of their adorable children (often After so many own-goals, it’s not sur- incidents of violence and arson, good of the Indian corporate sector. implementation of industrial rela- to be mainly on the monarch and those snapped by Kate herself). They weath- prising that senior management might blocking of railway tracks and roads Krishan Kalra Gurugram tions codes. in the line of succession. In this case, ered unsubstantiated rumours about want to “make some changes,” as the old by protestors trying to enforce a shut- Y G Chouksey Pune that’s the Queen, himself, his son Prince their marriage and a falling-out with corporate euphemism goes, or that the down. Well done, Mamatadi, for tak- Political unionism William, and William’s oldest child, friends with hardly a backward glance. Sussexes themselves would want a sort ing such a bold stand. But will she Letters can be mailed, faxed or e-mailed to: The Editor, Business Standard Prince George. It’s not the Sussexes, as By contrast, the Sussexes have man- of career change. They have clearly also kindly recall that her own state This refers to “Bharat Bandh: An Nehru House, 4 Bahadur Shah Zafar Marg much as the media loves covering them. aged over the past couple of years to struggled to balance the public and pri- was marred by huge political violence interaction of economic and social New Delhi 110 002 This means not only jettisoning some snatch defeat from the jaws of victory sev- vate aspects of royal life, and frankly, let loose by Trinamool Congress issues” (January 9). A major bane of Fax: (011) 23720201 · E-mail: [email protected] liabilities — think of Jeffrey Epstein- eral times. They’ve repeatedly failed to seem pretty miserable doing the job activists both during last year’s Lok Indian trade unions is that they are All letters must have a postal address and telephone linked Prince Andrew — but also divest- coordinate major announcements with they’ve been trying to do since their wed- Sabha polls and the by-elections to politically affiliated and practise number ing some potential assets, like the the palace — Wednesday’s kerfuffle being ding. Harry and Meghan have issues the state Assembly? Why such “dou- Sussexes, into independent entities, if just the latest, and maybe the craziest, they care deeply about and want to have ble standards”? > HAMBONE they don’t fit with the strategic vision. example. Last fall, they torpedoed the a public voice on; their job in the family Kumar Gupt Panchkula Think about it. To succeed, an organ- good public relations they’d earned on a business has been to keep quiet and isation needs to focus. The essence of tour of South Africa by launching an ill- smile. Seen in that light, they haven’t Improving governance competitive strategy is not only deciding considered lawsuit against the press just really been hitting their performance tar- what you will do, but being firm on what as the visit was ending. They also fumbled gets — and they probably don’t find the This refers to the front page report you will not do. The royal family doesn’t the public aspect of baby Archie’s birth work all that fulfilling. “Breather for India Inc likely on CMD get to pick its relatives any more than — which is usually a pretty hands-down Perhaps this is one spinoff that could norm” by Shrimi Choudhary (January you or I, but they can decide who lives positive royal news story — by promising work for everyone involved. 9). The extension of the March 31 off the public purse, who counts as to share some details with the public, but deadline by the Securities and “senior” and who does not. then holding most of those details in strict © Bloomberg 2020 Exchange Board of India (Sebi) may help the 247 top companies — includ- OPINION 9 > STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM

Volume XXIV Number 106 ILLUSTRATION: BINAY SINHA MUMBAI | FRIDAY, 10 JANUARY 2020 Opening up mining Removal of end-use restrictions is a major step forward he Union Cabinet on Wednesday cleared an Ordinance that, in effect, opened up India’s mineral extraction sector to commercial mining companies of both local and foreign ownership. The Mineral Laws (Amendment) Ordinance 2020 amends both the Mines and T military has always been a colonialist institution. I Minerals (Development and Regulation) Act of 1957 and the Coal Mines trust one can be blunt here without causing offence. (Special Provisions) Act of 2015. This sets in motion the process by which The fact is that the same regiments, which for 250 mining leases can be auctioned. Any company registered in India can bid years had been bayonetting and bombing Indians and develop coal blocks, which means that previous restrictions — such as before August 14, 1947, were charged with protecting compulsory mining experience or a presence in specified sectors such as Indians the following day. Our response cannot be that our soldiers are all loyal and love the country power or iron and steel — have been removed. In other words, there will be and would never do anything to harm it. That is not no end-use restrictions on the auctioned leases. This is a major step forward how adults debate. for commercial mining and for general efficiency in the sector, which has The fourth thing is that we are too afraid to even hitherto been dominated by the state. discuss such things. The Indian Express reported a The government has claimed that its changes to the coal-mining regimen few years ago about the unusual troop movement ordered by the then army chief (who is today a min- in the country will ensure that the import bill is reduced. More than 200 coal ister). The government freaked out because it didn’t blocks are eventually to be auctioned, according to the authorities, which know if this movement was being directed against they claim could eventually produce as much as 400 million tonnes a year. A force to reckon with it. The newspaper report was accurate and factual Even a partial movement towards that target would considerably reduce but it was derided because the army chief cannot India’s import bill of about $15 billion. There is no reason for the country to Through the position of CDS, the military gets a say in do any such thing. be importing thermal coal in particular, of which it has ample reserves. High- Less noticed was a report on these pages pub- governance. Should we worry about it? lished a few days before The Indian Express report. quality coking coal, however, may have to continue to be imported. The iron I physically sat up when I came across this para- ore sector, meanwhile, is also being affected. Leases for 46 mines that are graph: “Consider the appointments made by the currently operational are due to run out in a couple of months. This Ordinance ndia has given its military a formal say in how retary, he will have the civilian side of the ministry current army chief, General Singh, from his Rajput will open up the market, a step which has long been hoped for. However, to government is to be run. The long-term conse- subordinate to him. Because we have unified all Regiment. While Singh has been a relatively fair attain desired results, the government will also have to work on other legal Iquences of this are unclear, but what is clear is this, the CDS will have more control over the military chief, he has posted officers from the regiment to that we will not be able to avoid them. They will than the defence minister. practically every crucial appointment: The deputy and administrative changes so that output moves efficiently. come. The record of military in government in our Has any of this been thought through? Of course, chief of army staff, the director general of military NITI Aayog Chief Executive Officer Amitabh Kant has tweeted that it is part of the world is not encouraging, and keeping it hasn’t. When leadership radiates genius and cer- operations, the adjutant general (responsible for dis- “finally the end of coal nationalisation” in India. Currently, Coal India and soldiers at arm’s length has always been wise. titude, why should it bother with details and the cipline and manpower planning), the military sec- Singareni Collieries account for more than 90 per cent of India’s coal pro- It is not particularly understood that the military opinions of others? I asked the two most well- retary who posts and promotes officers, and the duction. Some of this will now be taken up by both India-based companies capture of Pakistan happened because of a civilian informed reporters on defence matters (this organ’s additional director general of administration & coor- initiative to introduce soldiers into government. correspondent and that of The Indian Express, both dination. In addition, Rajput officers were placed and multinationals. This will be a wake-up call for Coal India, which will Gen Ayub Khan, the army chief, was made a minister soldiers themselves) whether it had been debated at the head of key formations around Delhi: The have to improve efficiency in both extraction and delivery if it is to maintain in the cabinet while he was still a serving officer. in public before being announced and they didn’t Delhi Area which controls military installations market share. The coal minister has insisted that there will be no impact on When things became sticky (in think it was done. around the capital, and the Meerut-based 22 Infantry Coal India, but that remains to be seen. Competition and efficiency in the the language of our times, when What must we now worry about? Division.” sector are overdue. The government is also to be commended for ensuring the anti-nationals were up to no The first thing is that Indians have On September 23, 2015, The Hindu published an good), it was easy for the general never had a say in how their Army is editorial, which said: “The Technical Support that the legal framework is in place rather than relying on purely adminis- to push his fellow ministers aside to be run. One of the problems with Division, a covert intelligence unit of the Army raised trative shortcuts, as was the norm prior to the coal judgment of the Supreme and take over because he had the 1935 Government of India Act was during the tenure of General V K Singh as Army Court some years ago. However, some caution is still warranted. The financial control over more force. That is that the largest head of the budget, chief, is in the news for all the wrong reasons. The and “fit and proper” norms for bidders will have to be carefully designed. It the simplest and most direct the Army, was outside the purview of revelation that sensitive documents relating to it is also essential that the government keeps in mind its other commitments, explanation for why Pakistan Indians. This is no different from how were destroyed illegally in 2012, in the final days of including on climate change. Further, the banking sector is still state-con- remains, even today in 2020, it remains today. It is scandalous and General Singh’s tenure — he is a Union Minister totally beholden to its warriors in outright treason to suggest that the ~4 today — deserves a thorough and serious inquiry. trolled and it should be careful to not over-lend to a sector that is globally matters concerning internal and AAKAR PATEL trillion or more that we spend on mil- The TSD has faced allegations that it misused funds facing a supply glut. A build-up of stranded and non-performing assets would external affairs as well as the itary and paramilitary might be too earmarked for secret service operations, indulged be in nobody’s interests. economy. much. It does not even occur as a in unauthorised surveillance and made attempts to India has created a new position in its military, question in politics: All parties outdo each other in destabilise the Jammu and Kashmir government. the chief of defence staff (CDS). In doing so, the gov- promising more money for defence. Some of these charges are attributed to the findings ernment has also brought the position inside the The second thing is that the creation of positions of an inquiry report by a Board of Officers. The latest Irrational demand administration by additionally making the CDS a for specific individuals, as has likely happened in exposé by this newspaper, with documentary evi- secretary— in fact, the most powerful secretary in this instance, is not without danger. The CDS has dence, shows that between May 22 and May 25, 2012, Licence-linked dues from non-telcos should be reviewed the defence ministry. Why they did this is unclear. already offered his opinion on politics and said that the Pune-based Southern Army Command assem- The CDS (and I assure you it will always be a man) what the opposition is doing regarding the bled two different boards of officers to destroy all he Supreme Court order defining telecom revenue has landed a will be in charge of military affairs and advise the Citizenship Amendment Act is not leadership. TSD-related documents in its possession.” number of non-telecom companies in the soup because they are defence minister. He will not hold formal military The third thing is that we must not assume that If you haven’t heard much about this, the reason saddled with a demand of close to ~3 trillion. These companies command and the three service chiefs will not report a force inside government will not assert itself. It is that the media thinks it is out of bounds even to to him but as the person in control of promotions will. Of course it will believe that it is doing some- discuss such things. And it is in this environment Twill have to pay licence-linked dues based on their overall revenues, and postings, he will, in fact, influence military com- thing good and for the right reason: All forces think that this prime minister has given the military an which have very little to do with telecom, after the apex court, in an order in mand and they will, in fact, report to him. And in that. The question is whether you want the most even larger role and a say in the doings inside gov- October last year, upheld the government’s definition of adjusted gross rev- his role as the defence ministry’s most powerful sec- powerful one to have a say in government. India’s ernment. enues (AGR) for telecom licensees. AGR is the revenue amount used to cal- culate the licence fee and spectrum charges paid by telecom companies to the Department of Telecommunication (DoT). As a result of the order, non- telecom companies including GAIL, RailTel, and PowerGrid, need to together cough up ~2.97 trillion, which is more than double what telcos will have to Policy challenges with 5 per cent growth pay. The numbers are baffling — GAIL (India) has to pay ~1.72 trillion, which is more than three times its net worth and several times the actual revenue he Indian economy, according to the first GDP will sustainably revive economic activity. Also, to go, as the RBI’s credibility as an inflation-targeting advance estimates of gross domestic product the government should not be seen as taking fiscal central bank will be at risk. earned. The company has claimed that it earned only ~35 crore as revenue T(GDP) for the current financial year, is expected constraints lightly. Both international and domestic Since the scope of supporting growth through fis- from its telecom business since 2001-02. PowerGrid will have to pay an to expand by 5 per cent, compared with 6.8 per cent financial markets care deeply about government bor- cal and monetary policy is fairly limited, economic astounding ~22,168 crore, while Gujarat Narmada Valley Fertilisers and last year. The nominal growth is likely to slip to 7.5 rowing and debt sustainability. Loss of confidence, revival will ultimately depend on policy reforms. Chemicals needs to pay ~15,019 crore and RailTel ~290 crore. per cent, compared with the assumption of 12 per or a possibility of a ratings downgrade, will signifi- Excessive policy accommodation might lift growth While the court verdict has put telcos in the dock at a time when they cent in the July Budget. The decline in growth can cantly increase risks to macroeconomic stability and in the short run, but it may not sustain and end up lead to a variety of problems, partic- affect growth outlook in the medi- increasing risks to macroeconomic stability. It is are running deep losses with some on the verge of default, the others with ularly in managing corporate and um term. Besides, additional gov- important to note that an external risk, like a sus- internet service provider (ISP) licences or those having licences to meet their government finances. While growth ernment borrowings will choke the tained increase in crude oil prices, can make India internal communication needs have been caught in the legal crossfire without estimates did not surprise anyone, financial system, crowd out the vulnerable very quickly. any reason. Many of these companies, after taking communication-linked the big question is: How fast can private sector, and increase chal- In terms of reforms, the government has been licences, never operated those businesses, and some others ran very minuscule India return to a higher growth path? lenges for the Reserve Bank of criticised for intervening on the supply side when telecom/internet operations while their primary business interests ranged Therefore, in the given backdrop, India (RBI) in conducting mone- the problem is seen to be of inadequate demand. 2020 will perhaps be the most impor- tary policy. India needs large scale supply-side reforms. For from energy to power to broadcasting services. Instead of fighting on their tant year for economic policy in The policy path for the RBI will instance, it is well accepted that no country can grow behalf in the court, the DoT has sent out notices to non-telcos for paying up recent times. The first stop will be not be easy, anyway. After cutting at higher rates sustainably without strong exports. the dues by January 24. The DoT should have stepped in proactively in the the Union Budget. the policy rate by 135 basis points One of the biggest reasons why India decided to stay case to argue the irrationality of bringing non-telcos under the ambit of the Government finances are in stress in the current cycle, it is now try- away from the Regional Comprehensive Economic judgment. In the absence of the court order, making a distinction between and revenue collection might fall ing to influence yields by inter- Partnership was the fear of imports. If India is not short by at least ~2 trillion in the cur- REAL TERMS vening in the bond market. Since expected to compete with members of this group for telcos and non-telcos, the DoT, which has been the prime mover in the AGR rent financial year. Although the gov- RAJESH KUMAR the accommodative stance of large years to come, then the problem is certainly not lim- case, should have been responsible enough to intervene when required. ernment is reportedly compressing central banks, particularly the US ited to domestic demand. As economist Amita Batra For the government, the AGR payout by telcos and non-telcos adding expenditure, most analysts expect it Federal Reserve, would lead to a has shown in these pages, India’s global value chain up to ~4.41 trillion would be a timely help in meeting the revenue target to overshoot the fiscal deficit target of 3.3 per cent of continued inflow of foreign funds — assuming the integration is not only low but has declined over the this financial year. But the government should avoid falling into this trap. GDP. However, it will now be important to see how situation in West Asia will not result in higher risk years (“India’s exports and Factory Asia”, September the government intends to manage its finances in aversion — liquidity management will become 3, 2019.) As a result, while India’s exports have been Any irrational levy on businesses (non-telcos who are part of the SC order the next financial year, and beyond. Some commen- tricky for the RBI. Necessary intervention in the virtually stagnant over the past several years, coun- in this case) may boomerang and that’s something that should have been tators have argued in favour of running a higher currency market to avoid rupee appreciation will tries such as Vietnam and Bangladesh are moving avoided. The Supreme Court, which refused an open court hearing in the deficit to support demand. It is being suggested that add to excess domestic liquidity. The monetary pol- ahead (“Why neglect exports?” by Shankar Acharya, matter earlier this week, is expected to hear the petition moved by the the government should not worry about the fiscal icy committee (MPC) did not cut policy rate in its Business Standard, December 12, 2019). This indi- industry ahead of the January 24 AGR payout deadline in a closed chamber. deficit and focus on reviving growth. The government last meeting, largely because of inflation risks, but cates India needs wider structural reforms to improve would be well advised to carefully evaluate its options excess liquidity in the system for too long can com- efficiency and compete in the global market. The expectation from the top court is that it will review its earlier order in and not fall for what now looks like a popular plicate policy management. Further, given the Another round of fiscal and monetary push may the case of non-telcos so that they can put their focus back on their respec- demand. It is worth highlighting that if the actual uncertainties, it will be difficult for the MPC to cut not take India too far and increase risks to financial tive core businesses. public sector deficit of 8-9 per cent of GDP is not rates in the near term. However, if it decides to stability. Thus, policy decisions in the coming able to push demand adequately, it is highly unlikely ignore inflation for a while to support growth, it will months, to a large extent, will decide the trajectory that further expansion of, say, worth 1-1.5 per cent of need to effectively communicate how far it intends of the Indian economy in the medium term.

computers and supercomputing. The seems to be the idea of an “appropriate Nano car project showed. The author book argues that India was forced to technology” for a nation which he believes that appropriateness of Technology and government make geo-political compromises in its beautifully illustrates with the story of technology is a fallacious idea and is technology choices and had to settle for a India’s “solar cooker versus satellite” scathing in his criticism of the then In this context, should Prime Minister eminently readable. The book’s standout lower grade supercomputer from the US technological debate in the 1950s. In political leadership for settling for an Narendra Modi and his government allow feature is its writing with its crisp, punchy rather than a better one from the 1952, the shiny new public sector entity “appropriate” technology rather than a free market for 5G equipment or protect and vivid prose. The copious research by Japanese, which had subsequent National Physical Laboratories (NPL) the latest technology. Indians from potential surveillance by the the author is packaged and presented repercussions. Citing few other similar announced the invention of a solar The book is well structured and takes Chinese government, as alleged by the US? through interesting precedents, the cooker that would ostensibly free poor the reader chronologically through the History can offer some lessons from stories, events and MIDNIGHT'S author makes a case Indians from wood and cow dung stoves. important events and milestones in BOOK REVIEW the past for this quandary, argues Arun anecdotes, devoid of MACHINES: A for minimal state The product was announced and India’s political history of technology. Mohan Sukumar in his delightful book dense technology Political History Of and bureaucratic demonstrated with great fanfare The only distraction to this flow is the PRAVEEN CHAKRAVARTY Midnight’s Machines: A Political History jargon. Technology In intervention in eliciting international attention from sudden “Ode” to three technocrats of Technology in India. The book is a The author draws India such technology The New York Times, Washington Post, whom the author feels have made an ndia is considering a transition to the fascinating chronicle of the history of an interesting Author: Arun choices and letting BBC and so on. Realisation dawned soon indelible impact on India’s technological next generation 5G telecom technology in independent India, the parallel with the the market decide. that the solar cooker would cost ~50, a development, which seems like a Mohan Sukumar Itechnology. Chinese telecom giant similar dilemmas that our leaders faced, Huawei dilemma The author draws princely sum in 1950s India and, more needless outlier to the book’s deeper Huawei is the world’s leading provider of the technology choices that they made from the 1980s when Publisher:Penguin strong counter- importantly, will not be ready to cook context and purpose. 5G technology, far superior and cheaper and their consequences. India was caught in Price: ~599 factual conclusions breakfast just after sunrise when most The book sets up an excellent than its rivals. But the United States has First off, kudos to the author for this the crossfire of Pages: 272 that is a history households needed it. The project was framework for rich debates and alleged that Huawei is a Chinese enthralling idea for a book. Independent technology spats writer’s perennial abandoned. The author extrapolates this discussions that are extremely relevant government-controlled company in India’s tryst with technology has been an between two world curse. But a to imply that the entire debate of today. It is undeniable that technologies disguise and China indulges in unlawful equally critical component of India’s powers then —the US and Japan. Japan counter-factual can neither be proven appropriate technology for a nation is such as internet, social media and smart surveillance and spying of people using development over the last seven decades, was the rising power, threatening to nor verified. Often, policy choices on futile and castigates the role of phones’ impact on society are profound Huawei’s data. It has banned Huawei. yet under-researched and under- unseat the US in technological important matters can be a bit more government in technology choices. But and complex. Canada, Australia, New Zealand and some published. This book fills the void, to dominance just when India’s technology complex and nuanced than the author the private sector is equally culpable of a parts of Europe have joined the US in some extent. savvy prime minister, Rajiv Gandhi makes it seem. wrong “appropriate technology” The reviewer is a political economist and a banning Huawei. The book is erudite, scholarly yet wished to propel India into the world of The other pet peeve of the author decision as the Tata Motors’ vaunted former scholar in a think tank QUICK TAKE: PALM OIL TO RALLY FURTHER “Actual conversation at Mumbai airport today morning. Person 1: “Iran and US are Crude palm oil prices have been rallying sharply going to war”. Person 2: “So, the The Smart Indian economy is finished?” Person for the past six months. Analysts expect the rally to continue in the near term. They cite India’s 1: “Yes”. Person 2: “Should I redeem MUMBAI | all my mutual funds?” Person 1: decision to restrict import of refined palm oil, “Absolutely”. Miles to go before FRIDAY, 10 JANUARY 2020 lower stocks in Malaysia, and Indonesia’s biofuel we sleep!” Investor blending target for next year as key factors RADHIKA GUPTA, CEO, Edelweiss AMC WWW.SMARTINVESTOR.IN FOR INFORMED DECISION MAKING < Insurers stay on sidelines as MFs continue equity purchase spree ILLUSTRATION: BINAY SINHA Fund houses have ramped HOLDING BACK up buying since 2015, led While MFs have bought shares since by a surge in SIP flows 2014, insurers have been net sellers Net flows (~ crore) n MFs n DIIs

ASHLEY COUTINHO & SUBRATA PANDA Mumbai, 9 January PMS players likely 120,674 118,778

omestic insurers have largely 109,367

remained on the sidelines even as 90,835 72,199 D mutual funds (MFs) stepped up 66,815 to consolidate after 52,953

their purchase of shares in the past few 48,170 42,219 years. In 2019, MFs shopped for equities 37,125 worth about ~53,000 crore, while domestic 23,942 institutional investors (DIIs) bought -30,329 Sebi’s rule change shares worth ~42,000 crore, implying net selling by insurance companies. A similar SACHIN P MAMPATTA strategy officer at InCred Group, said trend has played out in the past eight 2014 2015 2016 2017 2018 2019 Mumbai, 9 January the financial services firm is looking years. MFs, on the other hand, have MFs: Mutual funds; DIIs: Domestic institutional investors to capitalise on the opportunities significantly ramped up their buying since Recent changes in regulation are thrown up the by possibility of con- 2015, driven by the surge in flows through Insurance. Indian valuations relative to the term, and have 5-20 per cent invested in of Indian stocks. In the past, insurance increasingly weighing on smaller port- solidation. “We are very aggressively systematic investment plans (SIPs), country’s Asian (excluding Japan) peers stocks. These products are driven more by firms such as the Life Insurance folio management service (PMS) looking for existing businesses as well ploughing in ~4.1 trillion. remain at a premium, both on price-to-earn- fund managers than by investors. Corporation (LIC) of India, the country’s providers, industry officials say, and as hiring fund managers,” she said. “Within the industry, there is an ings multiples and price-to-book value, and “Whenever the markets heat up, in Ulips largest insurer, have helped prop up the might trigger a round of consolidation. She believes consolidation is more increased focus on protection, which the current premium is slightly higher than by and large, to improve the performance market against steep falls. At present, there are over 350 PMS likely for those with an asset size of typically means less equity exposure. In our the long-term average, foreign brokerage of the funds the fund managers may ease According to market observers, LIC may providers, compared to 46 registered under ~200 crore currently. On estimate, insurance companies have been BNP Paribas recently observed, adding that out their position with a hope that they have liquidated some of its holdings in the players in the mutual fund (MF) average, break-even is likely to shift flat to negative on equities flows in 2019,” there was sharp polarisation in valuations might be able to rebuild it at a later stage,” secondary market to participate in the industry. The Securities and Exchange higher, with operational leverage and said Mihir Vora, director and chief invest- between “high-quality” stocks and the rest. said Ashvin Parekh, chief executive officer, government’s disinvestment programme. Board of India (Sebi) in November economies of scale only kicking in at ment officer (CIO), Max Life Insurance. Investors in unit-linked investment Ashvin Parekh Advisory Services. The insurance behemoth, which reportedly increased the minimum investment upwards of ~500 crore. People are also According to market observers, insurers plans (Ulips) have a tendency to withdraw “Insurers might have liquidated their invested about ~68,000 crore in stocks in in such funds from ~25 lakh to ~50 lakh. looking to offer expertise in more than are long-term investors in the market and their money once their lock-in period is gains from equity and may be deploying 2018-19, typically looks to increase its stock Minimum net worth has also one asset, rather than having only tend to get stable flows. MFs, on the other over, especially if the market is at a high, some of that money in the debt market investments by 10-15 per cent every year. been increased from equity or debt seg- hand, are much more driven by cyclical say experts. In 2019, the benchmark Sensex owing to the favourable interest rate sce- Historically, foreign portfolio investors ~2 crore to ~5 crore. COMING TOGETHER ments exclusively. flows, especially in times of sustained mar- gained 14 per cent. nario and the Reserve Bank of India’s (RBI’s) have been the dominant market price- The regulations also “Regulations are ket upsurge. “With a long-term perspective The asset allocation in Ulip products accommodative stance.” setters, given their size and trading come with a higher | Sebi regulations require forcing people to and stable flows, insurers have the ability varies from customer to customer, but typ- The RBI slashed rates by 135 basis points patterns in India. The past couple of years compliance burden. more employees, innovate, change to to sell at expensive valuations and wait for ically about 75 per cent is invested in stocks. in 2019, boosting debt portfolios. Bond have indicated a change, with domestic The chief execu- net worth client-centric mod- the right time to buy on corrections,” said Traditional products such as term, endow- prices and interest rates move inversely. flows increasingly being the primary tive officer of a PMS | Fixed costs to go up els, and consolidate," Aneesh Srivastava, CIO, IDBI Federal Life ment, and whole-life policies are more long- Insurers are one of the largest drivers driver of the market direction. at a brokerage said said Moodgal. he had received feel- | Minimum investment PMS refer to ers for mergers and size has increased specialised invest- consolidation from | Smaller players looking ment services for around six players. to consolidate rich investors. It is The head of a generally associat- Gold ETFs garner ~16-crore inflows, a first in 7 years domestic brokerage | Mergers and acquisitions, ed with more risk said that they had buyouts on the anvil and higher returns. PRESS TRUST OF INDIA The inflows meant assets under GOLD ETFS: ASSETS UNDER “Fears of a slowdown in Officer Ashwani Bhatia said: “Gold decided to shut The new rules have New Delhi, 9 January management (AUM) of gold funds global markets have helped gold as an asset class, preferably in the down their PMS because of higher raised compliance standards for (~ crore) surged 26 per cent to MANAGEMENT find its safe-haven appeal back gold ETF format, should ideally minimum investment. Both asked not such funds. Investors infused ~16 crore in gold ~5,768 crore at the end of December 14,000 in recent times. This triggered a be a part of every investor’s to be identified. “A portfolio manager…(shall)… 10,218 exchange-traded funds (ETFs) in 2019, from ~4,571 crore at the end 12,000 sharp rally in prices in 2019, portfolio, and is relatively safer Danesh Mistry, head of PMS at mandatorily employ minimum one 2019 — after pulling out money of December 2018, showed the data 10,000 therefore, catching investors’ than other asset classes.” Tata Asset Management, said portfolio person with defined eligibility criteria from safe-haven assets for the last from the Association of Mutual fancy,” said Srivastava. “To that extent, we are not managers are faced with two issues. in addition to principal officer and six years — on fears of a slowdown Funds in India (Amfi). 5,768 8,000 “Gold also adds a different surprised to see inflows into the The minimum investment size has compliance officer… appointment of in the global market and volatility Over the last few years, retail 6,000 layer of diversification to an category. However, what we doubled, making it difficult to attract custodian (is) mandatory for all the in equity and debt markets. investors have invested more 4,000 investor’s portfolio, which has believe created additional interest customers used to a lower threshold, portfolio managers, except for those The segment is likely to gain money into equities, compared to Dec ‘12 Dec ‘19 come in full play in 2019, with in gold ETFs was perhaps the and, fixed cost has risen because of providing only advisory services to more traction from investors on gold ETFs, mainly on account of gold witnessing one of its best volatility in both the equity and compliance requirements mandated clients,” Sebi said, following a board Source: Amfi Compiled by BS Research Bureau account of the ongoing tensions strong returns. years after 2011,” he added. debt markets, along with a rise in by Sebi, including a higher number of meeting in November. between the US and Iran, and According to the Amfi data, nessed an outflow of ~730 crore, He added that the rise in AUM gold prices,” added Bhatia. officials on payroll. “They may need There are 353 registered players the threat to global economic investors infused a net sum of ~942 crore, ~891 crore, ~1,651 crore, was largely led by the change in Gold-backed ETFs are passive to consolidate just to cover the fixed in the PMS space, and 46 in the growth, said Himanshu ~16 crore in 14 gold-linked ETFs and ~1,815 crore in 2017, 2016, 2015, market valuation — increase in investment instruments, which cost,” said Mistry. mutual funds sector. However, Srivastava, senior analyst man- last year, while they pulled out 2014, and 2013, respectively. the price of the yellow metal. are based on price movements Meanwhile, there are also those investor acco unts for MFs number ager (research) at Morningstar ~571 crore in 2018. Gold ETFs had seen an inflow of SBI Mutual Fund Managing as well as investments in who are looking to take advantage of around 86.5 million, with ~27 tril- Investment Adviser India. The safe-haven asset had wit- ~1,826 crore in 2012. Director and Chief Executive physical gold. the churn. Chhavi Moodgal, chief lion in assets.

Sebi directs bourses to set up THE COMPASS new monitoring framework CIL: No pressure from new players, but outlook stays weak Regulator refuses Govt’s plan to sell SHREEPAD S AUTE encouraging about CIL’s near-term outlook VOLUME PERFORMANCE as production and off-take growth for FY20 to tweak new stake remains The government’s nod to the ordinance, Figures in million tonnes as well as 2020-21 (FY21) is expected to be which allows other players to mine coal For the month dismal. Although December’s perfor- rules in meeting an overhang for open-market sales, impacted the stock mance was better, the volumes (produc- with brokers of Coal India negatively on Wednesday. Dec ’18 Dec ’19 YoY chg (%) tion and offtake) are unlikely to get mate- Despite the benchmark indices seeing Production 54.14 58.02 7.2 rial push unless the power sector picks up JASH KRIPLANI & good recovery at the close of the trading, sharply, cautions Sharma. Offtake 52.61 53.63 1.9 SUNDAR SETHURAMAN the Coal India (CIL) stock was down For FY20, volumes are expected to fall Mumbai, 9 January 3.7 per cent over the last couple of sessions, Year-to-date by 3-5 per cent. The only solace is that this while the Sensex gained about 1.4 per cent. lower base would make FY21 volume The Securities and Exchange The latest development has only wors- Apr- Apr- YoY chg growth look a little better. Additional pain Board of India (Sebi) has OPTIONS FOR THE FUTURE ened sentiment, with a likely negative Dec ’18 Dec ’19 (%) would stem from weak international coal refused to tweak its new | Brokers may propose an apply to sell delivery business impact for CIL, which has already Production 412.44 388.41 -5.8 prices, impacting realisations of CIL’s regulations on margin intra-day product to Sebi trades, where brokers reported dismal volumes for the first nine e-auction business, which earns higher requirements, and has in which margins could don’t have power months of 2019-20 (FY20) during which Offtake 444.63 417.26 -6.2 margin, compared to FSA-based coal also directed exchanges to be offered to clients of attorney on production and offtake reduced around YoY: Year-on-year Source: Company supplies. Some support from non-power implement a framework to using brokers’ own funds clients’ accounts 6 per cent each. segment is not ruled out though. monitor margins maintained First, the good in the bad. While there not see much impact.” Of the total volumes The government’s plan to sell any stake by clients for intra-day trades, | Sebi will take the final | Futures segment is bound to be an impact in the long term, of over 600 million tonnes, in 2018-19, over remains an overhang for the stock. In fact, in both the derivatives as well call on whether such a accounts for 10-15% of the development is unlikely to hurt CIL 85 per cent was under FSA. The remaining with lower tax revenue of the government, as cash segments. product can be allowed market volume; options anytime soon and a large part of its sales 15 per cent and incremental volumes are stake sale target by the government is likely It has given the bourses a | New regulations to also accounts for 80-85% also remains protected. According to the ones at risk. Further, an analyst from to increase, say analysts. month for implementation of Vineeta Sharma, head (research) at a domestic broking house believes that The stock is unlikely to see a sharp the new monitoring mecha- Narnolia Financial Advisors: “Large por- new players would take at least five-six upside despite attractive valuations of nism. According to two peo- development. Due to this grey People in the know have tion of CIL’s business is under long-term years to start production. around 4x the enterprise value to Ebitda ple familiar with the develop- area, a large segment of bro- suggested that exchanges fuel supply agreement (FSA), which would Having said that, there is nothing very and a high dividend payout ratio. ment, the Association of kers offered additional lever- could be allowed to give some National Exchange Members age to clients looking to par- operational flexibility in the of India, the Bombay Stock ticipate in intra-day trades. cash segment. Exchange Brokers’ Forum However, in the coming “Giving leverage facility in Havells’ underperformance may take a while to reverse (both representing brokers), days, brokers may propose an the F&O segment had helped along with exchange officials. intra-day product to Sebi, in brokers attract retail traders, Valuation of 34x HAMSINI KARTHIK pockets could stay stressed. which has seen a healthier lysts at HDFC Securities say met Sebi on Wednesday. which margins could be who wanted to place intra-day Among these, while cables 19 per cent year-on-year FY20 will remain to be a year However, the regulator offered to clients using bro- trades but didn’t have enough FY21 earnings When stocks in the cooling and wires fared better than the growth in revenues for the first of work in progress as far as this made it clear that margin kers’ own funds. funds to meet margin require- solutions segment such as rest in terms of revenue growth half of FY20. Lloyd’s is concerned. requirements would apply to People in the know say ments,” said an executive of does not capture Voltas, Blue Star, and Whirlpool in the September quarter (Q2), Contributing to about 19 per “We see Lloyd’s business intra-day trades, and directed Sebi will take a final call on a broking house. whole picture delivered handsome gains, thanks to last year’s price hikes, cent of the company’s overall turning around from 2020-21 the exchanges to introduce whether such a product can According to the industry diversified consumer durables revenue growth in the cables kitty, Havells’ has managed (FY21), with benefits of portfo- peak margin reporting within be allowed. data, the futures segment player Havells failed to live up segment in 2019-20 (FY20) has deeper customer penetration lio diversification and back- a month to ensure clients In the cash segment too, accounts for 10-15 per cent of to expectations. With the stock been only 6 per cent, which and market share gains in the ward integration reflecting in maintain the upfront margin Sebi stuck to its stance dur- the market volume, while the down 6.5 per cent in 2019, the hasn’t been enough to make up past year for categories such as the numbers,” say analysts at requirements for intra-day ing Wednesday’s meeting. options segment accounts for question is how soon it can for the muted show by other fans and water heaters. CLSA. In short, the near future trades too. The new norms will ensure 80-85 per cent. reverse the past year’s segments. Even as Havells But what could weigh on offers little cheer to investors The move is likely to have that clients maintain In the last few months, the underperformance. Going by maintained its market share these gains for a reasonable and hence, the chances of its a wider impact on volumes in upfront margin before tak- markets regulator has the current trend, it appears across product offerings, chal- period could be the Lloyd’s con- stock price reversing the the futures and options (F&O) ing delivery of stocks. brought in several norms to that it is some time away. lenges remain elevated for its sumer business, a vertical past year’s underperformance segment, in which leveraged Earlier, it was not uncom- tighten practices in the For one, Havells’ depen- switchgears and lighting busi- acquired in 2017. Work is still appear low. intra-day trades had been a mon for brokers to allow broking industry. dence on traditional segments nesses, which hinge more on under way in terms of rational- While valuations at 34x its common practice. clients to take delivery On handling of client secu- such as switchgears, lighting, industrial projects. The lighting ising its operations. FY21 earnings appear reason- “Earlier, there was an without upfront margins. rities, Sebi issued a circular and cables remains high at business has been vulnerable Pointing out that much of able after the correction, it may ambiguity in the F&O seg- The new margin norms stating that brokers were 65 per cent of its total revenue. to competition from Chinese the revenue decline in Lloyd’s not fully capture the pain ment, where margin report- will also apply to sell delivery required to ‘unpledge’ any With the economic downturn imports in the LED segment. business could be attributed to ahead for the stock. ing needed to be done only at trades where brokers don’t client securities and sell them showing little signs of reversal, The saving grace is Havells’ intense competition in the tele- Investors should, hence, the end of the day,” said one have the power of attorney on in the market if the dues were revenue streams from these consumer durables business, vision panels segments, ana- remain cautious. of the people familiar with the clients’ accounts. not cleared by clients. MUMBAI | FRIDAY, 10 JANUARY 2020 THE SMART INVESTOR 11 . <

N US-IRAN CONFLICT N Sensex soars 635 points, oil cools off ~ GAINS 48 PAISE TO CLOSE AT 71.21 AGAINST $ STANDARD GOLD FALLS MORE THAN 2.4% TO US STOCKS HIT RECORD HIGHS; MSCI'S GAUGE OF AS INVESTORS CHEER EASING TENSIONS ~39,772, BIGGEST DROP SINCE OCTOBER 2016 INDCIES IN 49 COUNTRIES REACH NEW PEAK

SUNDAR SETHURAMAN & RAJESH BHAYANI RELIEF TRADE Mumbai, 9 January Brent crude ($ Bbl) Ukraine plane accidentally downed by Iran: US he benchmark indices rose to mirror 70 REUTERS satellites had detected the missile strike and terrorism, as the gains in global markets on hopes of 66.62 69 Washington/Kiev, 9 January launch of two missiles shortly Iranian investigators said the T a de-escalation in the US- Iran tensions. 68 before the plane crashed, plane was on fire before it fell to While the rupee, too, appreciated by 48 US STRIKE 65.21* A Ukraine airliner that crashed in followed by evidence of an the ground. Kiev said its paise to close at 71.21 against the dollar (during on Jan 3,’20 67 Iran, killing all 176 people explosion. investigators wanted to search the day, it traded in the range of 71.52-71.17 to 66 aboard, was most likely brought Speaking to reporters, Trump the site of the crash. the US currency), crude oil and gold prices 65 down accidentally by Iranian air said the crash could have been a witnessed a sharp correction. Jan 2,’20 Jan 9,’20 defenses, US officials said on mistake, adding he had a Baghdad’s Green Zone hit The benchmark indices — Sensex and Thursday, as President Donald terrible feeling about the by 2 rockets, no casualities Nifty — rose 1.5 per cent each, their biggest sin- Domestic gold (~/10g) Trump said he had a terrible downed airliner but offering no gle-day stride since October 23, 2019. The 41,000 feeling about the disaster. evidence. “Somebody could Two rockets fell inside Baghdad’s Sensex rose 635 points, or 1.5 per cent, to end But, Iran’s Civil Aviation have made a mistake,” Trump heavily fortified Green Zone, which at 41,452, while the Nifty surged 191 points, or 39,058 40,500 Organisation denied the US told reporters at a the White houses government buildings and 1.6 per cent, to close at 12,216. A day earlier, version of the incident as House, adding that he had foreign missions, but caused no both indices tanked as investors were worried 40,000 “illogical rumours” and said suspicions about the crash but casualties. Sirens were sounding about the possible fallout of the Iranian missile 39,722 “scientifically, it is impossible giving no other details. inside the Green Zone on US STRIKE 39,500 strike against the American forces in Iraq, days on Jan 3,’20 Wreckage of the Ukrainian plane near Tehran. Iran has dubbed that a missile hit the Ukrainian Ukraine, meanwhile, outlined Wednesday. Police sources said at after top Iranian general Qasem Soleimani 39,000 the American allegation of accidentally downing the aircraft plane”. four potential scenarios to least one of the rockets fell 100 was killed in a US drone strike in Baghdad. Jan 2,’20 Jan 9,’20 “illogical rumours” PHOTO: REUTERS One US official said American explain the crash, including a metres from the US Embassy. US stocks, too, hit record highs on Thursday and several brokerages boosted Sensex price targets on high-profile companies. every $10 rise in crude pushes the headline The market breadth was inclined strongly Analysts were unsure about the future 41,800 At 11.29 am EST (9.59 pm IST), the Dow 41,627 consumer price index inflation by 0.4 per cent. on the advancing side on Thursday with two price of gold. According to Nigam Arora, US- China rejects Jones Industrial Average was up 182.22 points, 41,452 “The easing of the geopolitical concerns stocks advancing for every declining stock on based market observer and author of Arora US STRIKE 41,400 Trump’s call to or 0.63 per cent, at 28,927.31, the S&P 500 was on Jan 3,’20 led to a risk-on rally across global markets. the BSE. All the sectoral indices on the BSE, Report, “Technically, gold was much over- up 17.59 points, or 0.54 per cent, at 3,270.64 and The latest geopolitical concerns had a bigger barring one, ended with gains. The realty sec- bought and due for a correction.” He also said end Iran deal the Nasdaq Composite was up 70.40 points, or 41,000 sensitivity to global oil prices,” said Rajat tor index gained the most and ended the ses- the only thing that was working for crude oil 0.77 per cent, at 9,199.64. Investors snapped up Rajgarhia, managing director, Institutional sion at 2,330, a gain of 2.8 per cent. Barring was the Iran situation, “otherwise, global sup- China on Thursday market heavyweights, including Apple, 40,600 Equities, Motilal Oswal Securities. four, all stocks rose and the biggest gainers ply has been more than the demand.” rejected US President Microsoft, Amazon.com, Alphabet, and Jan 2,’20 Jan 9,’20 However, some analysts were sceptical. were ICICI Bank, State Bank of India, IndusInd In India, the recent volatility in crude oil Donald Trump's call to Facebook, lifting their shares between 0.9 per *At 10.32 pm They said investors are naively hoping the Bank, and Mahindra & Mahindra. and precious metal prices on the MCX futures “break away” from the Source: Bloomberg/IBJA; cent and 2.0 per cent. Compiled by BS Research Bureau current round of tensions as a show strength, With easing tensions, the rush to the safe- have resulted in many traders facing huge Iranian nuclear deal and The MSCI’s all-country world index gained and that there could be panic selling if there is ty of gold stemmed, too. The yellow metal fell margin calls. Brokers are reducing clients’ work for a new one, 0.63 per cent. Its emerging markets index rose a any escalation in tensions between the two from Wednesday’s intraday high of $1,611 per leverage levels. However, high volatility has saying the agreement is a 1.64 per cent. between the US and China. The latest de-esca- countries. Market players, on the other hand, ounce to $1,545 per ounce now. In India, on the resulted in multi-year record high volumes "hard won outcome" Global stocks jumped after Iran’s Foreign lation has brought back that optimism,” said said the US-China tariff deal next week, the MCX futures, gold fell from its Wednesday’s on the MCX. The MCX daily futures segment adopted by the UN and Minister Javed Zarif tweeted: “We do not seek Andrew Holland CEO, Avendus Capital Public third-quarter results and the factory output high ~41,293 per 10 gm to ~39,770 per 10 gm at turnover was at a 7-year-high on Wednesday “all parties” should abide an escalation or a war.” On Wednesday, US Markets Alternate Strategies. data, set to be released soon, will give some the close of Thursday’s session. (the data comes with a day’s lag), at ~62, 318 by it. The nuclear deal President Donald Trump said that Iran's attack Brent crude fell over 4 per cent in the last direction to the market. In Mumbai spot also, standard gold was crore, while option volumes were ~5,135 crore. called Joint Comprehen- did not result in any casualties and added that two days and was trading at $65.21 a barrel at “Ultimately, events come and go, but earn- down over 2.4 per cent to ~39, 772 per 10gram In crude oil futures & options, the turnover sive Plan of Action was Tehran appears to be “standing down”. 10.32 IST, after rising as high as $71 during the ings essentially determine where the markets (without GST), while silver lost 3 per cent in a was at an all-time record of ~31,183 crore. Gold reached between Iran and “The US- Iran crisis had destabilised the week. The rising crude oil price had stoked are headed. This quarter will be subdued; day to close at ~46,375 per kg. This fall in the option and futures volume was at ~18,128 crore, the P5+1 (Germany and whole thinking that global growth will pick fears of inflation pressures in the economy. hence investors will be closely watching the gold price in the spot market was the sharpest and silver was at ~9,503 crore. In derivatives, the EU). up because of the phase one trade deal India is one of the biggest importers of oil and management commentaries,” said Rajgarhia. after October 2016. higher the volatility, higher will be volumes. ICICI Prudential AMC Margin contraction and competitive Sebi lays down invests ~334 crore in guidelines for credit risk fund in Q3 pressure may keep spirits low at USL Faces higher costs ernment had introduced a new bar PRESS TRUST OF INDIA policy, which included the cancel- investment New Delhi, 9 January of raw materials, lation of existing bar licences, issuance of new ones from January Prudential Asset Management consumption 2020, and reduction in the num- advisors in IFSC Company on Thursday said it slowdown ber of bars. invested ~334 crore in its cred- The government has also PRESS TRUST OF INDIA it risk fund in the December RAM PRASAD SAHU imposed additional retail excise tax New Delhi, 9 January 2019 quarter, a move that may Mu.mbai, 9 January on Indian Made Foreign Liquor encourage investors to put in “At ICICI Prudential, we sold to bars, which led to sharp The Securities and Exchange Board of India (Sebi) their money in the fund. convey a lot about our Investors in United Spirits (USL) price increases. The state con- on Thursday came out with guidelines for entities The fund house has invest- values and beliefs that are did not make any money in 2019. tributes 4 per cent to USL’s sales. for operating as investment advisers in the ed ~256 crore in December and ingrained in the risk The stock, which has underper- Analysts at Emkay Global expect International Financial Services Centre (IFSC), ~78 crore in October. management practices formed the broader indices, end- third-quarter volumes to be under which such advisers need to have a net Credit risk funds invest and investment process ed marginally lower than the year- DOWNHILL impacted by 2-3 per cent, but worth of at least $1.5 million. The decision has mainly in corporate bonds that we use. Simply put, ago levels. From its September MARGIN PRESSURE expect a recovery from the March been taken following the representations received that are below the highest rat- we walk the talk” levels when it had peaked, the stock For the quarter ended United Spirits quarter as trade stabilises. from various stakeholders, Sebi said in a circular. ing assigned by credit rating NIMESH SHAH has shed about 11 per cent. Figures in ~ cr Dec ‘18 Dec ‘19E % chg YoY BSE Sensex In addition, any excise duty Under the framework, any recognised entity or agencies. Pegged back by a consumption ] 120 hike by the states will be an added entities desirous of operating in the IFSC as an MD and CEO, ICICI Prudential AMC Revenue 2,496.9 2,621.1 5.0 114.34 “At ICICI Prudential, we slowdown and high base, the com- 100 headwind, at a time when volume investment advisor (IA), may form a company or Gross profit margin (%)* 48.6 46.6 -200 [ 110 convey a lot about our values pany recorded muted volume in ] growth has been impacted by the limited liability partnership (LLP) to provide Ebitda 358.2 372.3 3.9 and beliefs that are ingrained in can clearly demonstrate their the September quarter. What ham- 100 ongoing slowdown. In addition to investment advisory services. Ebitda margin (%)* 14.3 14.2 -10.0 [ the risk management practices conviction to investors and dis- pered sales further were the liquid- ] price increases, which have to be The country’s only IFSC is in GIFT City near and investment process that we tributors.” Industry experts said ity challenges for trade in certain Netprofit 192.4 233.8 21.5 90 approved by the state govern- Ahmedabad in Gujarat. use. Simply put, we walk the it is encouraging for investors to states and a temporary supply- *YoY change in basis points; E: estimate; Ebitda: earnings before 95.34 ments, higher revenues will be a An applicant needs to have a net worth of talk,” ICICI Prudential AMC MD see that fund managers believe chain disruption. The company interest, tax, depreciation and amortisation 80 function of higher sales in states, not less than $1.5 million (about ~10.5 crore). In Jan 1,’19 Jan 9,’20 and CEO Nimesh Shah said in enough in the fund to put their faces some headwinds on account Source: Company, Brokerage Reports and BS Research with increased realisations and bet- case, the IA is set up as a subsidiary, the net a statement. own money on the line. of margin contraction and com- ter product mix. worth requirement is to be met by the subsidiary “Speaking on behalf of the Earlier in March 2016, Sebi petitive pressures. eight quarters. the cost of goods sold as a propor- Finally, analysts at Elara Capital itself. However, if the subsidiary does not meet stakeholders, I can confidently made it mandatory for asset The hike in key raw material The government’s ethanol tion of sales to rise from 49.6 per believe the company (shed 500-bp the criteria, the net worth of the parent can be say that we do eat our own management companies prices is putting pressure on gross blending policy and higher cost of cent in 2018-19 to 54.3 per cent in market share since 2013-14 due to considered. cooking and invest side by side (AMCs) to disclose in their margins. Half the raw material cost the ethanol blending component 2019-20. This is expected to move focus on premiumisation) will con- The investment advisor with our investors,” he added. Scheme Information Docume- is contributed by extra neutral in ENA, coupled with the rise of 15- up further by another 300 bps to tinue to struggle to regain lost share needs to fulfil the net worth Joydeep Sen, founder of nts the aggregate investments alcohol (ENA) and glass. A spike 18 per cent in glass prices over the cross the 57-per cent mark in 2021- because of underperformance in requirement separately and wiseinvestor.in, said, “It pays made by AMC board of direc- in their costs had led to a 410-basis past few years, have been putting 22. In the December quarter, gross the high margin category. independently for each activ- to invest with managers who tors, fund managers and other point (bp) dip in the September pressure on gross margins. While margins are expected to fall 200 While the near-term stock per- ity undertaken by it under invest in their funds. Investors key personnel. quarter to 45 per cent. The com- the company has been taking steps bps year-on-year to 46.6 per cent, formance will depend on the the relevant regulations. want to know whether fund Kotak Mahindra AMC in pany offset the impact somewhat to offset the impact and has main- while operating profit margins are December quarter results, investors Spelling out qualification manager eats their own cook- 2015 took a stance that made at the operating profit level by cur- tained its operating profit margins weaker by 10 bps. should await signs of margin and experience requirement ing. So, if anybody does it, it is it mandatory for its employ- tailing its marketing, employee, over the past couple of years, cost Regulatory changes are anoth- improvement and volume uptick, for IA, Sebi said partners and a good indicator of future suc- ees to invest in their and other expenses. Advertising surge could keep margins under er headwind which could impact especially in the Prestige-and- representatives of applicants cess and alignment of objec- schemes. In March 2019, DSP expenses, as a proportion of sales stress. the revenues of USL. In November above segment before considering offering investment advice tives. This way, fund houses AMC followed. at 7.6 per cent, was the lowest in Analysts at Elara Capital expect last year, the Andhra Pradesh gov- investment in USL. The markets will need to have a post grad- regulator has uate degree or post graduate prescribed an diploma of a minimum two application fees years tenure in finance, of $750 for accountancy, business man- registration as agement, commerce, eco- NCDs provide interest income, capital gains investment nomics, capital market, advisors for banking, insurance or actu- credit rating shows the likelihood of the accumulated interest option as ICR shows how well a firm can pay operating in IFSC arial science from recognised However, look at credit the underlying issuing company INVESTMENT TIME compounding results in a better yield. interest on outstanding debt. CAR and a renewal institution. rating and payout defaulting on its interest and principal Tax slab (%) measures the company’s capital and fee of $7,500 Those having experience payment. Jain says, “A rating of ‘AAA’ Assumed rate of interest Posttaxreturn Taxation: Abhinav Angirish, founder, sees if the company has sufficient of at least five years in activi- options before investing shows the highest quality or that the 9.00 8.55 9.00 9.00 InvestOnline, says,” NCDs are taxed funds to survive potential losses. ties relating to advice in financial products or probability of default is extremely low. 7.20 according to the slab rate of the Stay away from any company that securities, or portfolio management, or invest- BINDISHA SARANG The next level is ‘AA’, where the default 6.30 investor. Hence, if the investor is in the has allocated 50 per cent or more of its ment advisory services are also eligible. probability is still considered fairly high tax bracket of 30 per cent, he will total assets towards unsecured loans. Sebi said that an IA will have to ensure to con- Muthoot Fincorp unveiled its low.” Likewise, ‘BBB’ and a have to pay 30 per cent tax on the Most NCDs are listed on the stock duct annual audit in respect of compliance with fifth issue of secured higher rating mean it’s worth interest accrued. However, the exchanges. Many believe that at times investment adviser norms and these guidelines redeemable non-convertible investing in as there is a rela- investor can get indexation benefit if if you want to exit, it could become from a chartered accountant or a company sec- debenture (NCD) to raise ~480 tively low risk of default. 5% 20% 30% he holds the NCDs for more than a challenging to find a buyer, especially retary or its equivalent under the laws in force of crore on Thursday. This is the Never let only returns be your year. If NCDs are sold before comple- for small investors with small volumes. the country in which the applicant is registered. Footnote: Income Tax Slab Rate for AY 2020-21 for Individual second issue to be announced parameter — interest coupon tion of one year, the short-term capital However, many advisors believe liq- In case of overseas applicants, a net worth cer- within a week. Tata Capital’s offered is inversely linked to gains have to be paid at normal tax uidity is a function of several factors tificate (not more than six months old at the time NCD issue, which was the credit rating; you get a rates.” If you sell NCDs after a year or mentioned above, and higher rated of filing of application) by a chartered accountant launched on Monday, is YOUR premium yield for investing annually, depending on the fixed more or before the maturity date, long- ones have decent liquidity. or its equivalent will have to be provided. already fully subscribed. in lower-rated securities with tenure specified.” term capital gains will be applicable at Some planners do not recommend The membership number or any other identi- NCDs are debt instruments MONEY more risk. At times, you get the added option 20 per cent with indexation. these products. Others think they are fication number of the chartered accountant that can’t be converted into of receiving interest on a cumulative good options. Angirish says, “If the needs to be included in the certificate. equity or stocks. If you want a piece of Payout options: The second parame- basis. Here, you do not get interest Other parameters: Jain says, “Credit person is in high tax bracket, his post- In case of overseas applicants, a credit score this pie, you need to choose right. ter to consider is the payout option. payments throughout the NCD’s rating will reflect other parameters. tax returns will be considerably lower. from a body similar to CIBIL, if existing in the Anuj Shah, Mumbai-based certified tenure, but as a lump sum amount on But if you want to consider a few more, However, NCDs are ideal investment applicant's jurisdiction, will have to be provided. Credit rating: Mumbai-based tax financial planner, says, “NCDs come maturity. Know your money need — you can like interest coverage ratio instruments for those in a lower tax The markets regulator has prescribed an appli- expert Balwant Jain says, “Of all the with a fixed maturity date. Interests short-term, long-term or regular (ICR), capital adequacy ratio (CAR), liq- bracket or do not have taxable income cation fees of $750 for registration as investment parameters one should look into, cred- can be paid along with the principal income and then pick the tenure uidity, provisions for non-performing since they offer a higher interest rate advisers for operating in IFSC and a renewal fee it rating is paramount.” After all, the amount, either monthly, quarterly, or accordingly. For regular income, go for assets, level of debt and the like.” than bank fixed deposits.” of $7,500. 16 PERSONAL FINANCE MUMBAI | FRIDAY, 10 JANUARY 2020 >

Keep an eye on capital protection Self-employed

Use these smart fund or bond fund and instruct the fund house to transfer the capital can also be a strategies to ensure appreciation every month. The rules decent returns from pertaining to exit load, minimum investment amount and minimum consumer equity investing incremental investment amount will apply. “This strategy is good for con- tection Act, there is a pro- servative investors who want to pro- viso that if the purchase is SARBAJEET K SEN tect their principal and take a risk for earning livelihood with only the returns. This could be a through self-employment, a ith global headwinds better option compared to the divi- complaint would be main- like US-Iran tensions dend transfer option. On the one tainable. and slowdown in the hand, the probability of capital pro- The Bench considered WIndian economy, stock tection is higher while on the other, it various Supreme Court deci- markets are likely to remain volatile is more tax-efficient,” says Bajaj. sions where the Apex Court for some more time, say experts. The had observed that the pur- NSE India Volatility Index or VIX on Trigger facility: Investors can also chase of goods for resale or Tuesday rose to 15.64 – up 7.05 per use the trigger facility, which allows CONSUMER for generating profits is ex- cent. So, even if one is investing them to instruct the fund house to cluded from the purview of through equity mutual funds, one has transact (buy, sell or transfer) in the PROTECTION the Act. In contrast, if the to be careful and think of means to units held if the given condition is sat- JEHANGIR B GAI buyer himself uses the avoid loss of capital. This is especially isfied. For example, an investor can goods (with or without the true for conservative investors or ones instruct the fund house to sell all the assistance of one or two close to retirement because while units of an equity mutual fund if the Dr Ram Kumar, a patholo- other persons) for earning returns are important, capital protec- net asset value were to fall below a gist, ran two labs. He pur- his livelihood through self- tion should take prominence. There have chosen. Choose a multi-cap particular level. One can also instruct chased a Lumax instrument employment, he would be a are a few strategies that can help HOW GAINS FROM MUTUAL FUNDS ARE TAXED fund as the transferee scheme. the fund house to transfer units of an for ~3,79,250 and its chemi- consumer. achieve this: Category Taxation of dividend “Investors who do not want to take equity mutual fund to a bond fund if cal kit costing ~1,20,000 Interpreting the various equity market risks and are sensitive capital appreciation of a particular manufactured by Lilac rulings of the Apex Court, Capital protection-oriented funds Debt funds Tax free in the hands of investor, DDT of 25% towards protecting their capital value size is seen. You can set the trigger in Medicare (now named the National Commission (CPOF): These are schemes with a (plus surcharge and cess as applicable) can do so by parking a lumpsum such a way that your capital is pre- Tosoh India). concluded that a person en- fixed maturity – say three years. They amount in fixed-income funds. served, or a certain minimum capital Kumar alleged that the gaged in commercial activi- invest in a mix of bonds and stocks in Equity funds Tax free in the hands of investor, DDT of These funds ensure safety of capital, appreciation along with capital is pro- instrument was defective ties on a significant scale to a way that the money invested in 10% (plus surcharge and cess as applicable) and returns from such funds can be tected in case of a massive fall in the and sought a refund. Since make a profit would not be a bonds gives back the capital and the systematically transferred to equity stock market. the company did not agree, consumer. Also, when there money invested in stocks provides Category Taxation of short-term capital gains funds. This also leads to rupee-cost However, be careful with the con- Kumar filed a complaint be- is a direct nexus of the goods higher returns, or as they say, the Equity mutual funds 15% averaging and helps earn slightly bet- dition you specify when defining a fore the District Forum purchased being utilised for alpha. “As debt instruments are held ter returns than pure fixed-income trigger. The trigger should not get against Lilac as the manu- large-scale commercial ac- until maturity, the probability of Debt mutual funds Slab rate funds,” says Chaturvedi. activated too early. You can register, facturer and Sharda Enter- tivity, he would not be con- mark-to-market losses due to interest Remeber that any dividend modify or cancel the trigger anytime. prises as the seller. The sidered a consumer. The test rate fluctuations is mitigated. For Category Taxation of long-term capital gains announced by a liquid or bond fund But once the fund house acts on it, manufacturer to determine investors who are spooked by the is subject to dividend distribution tax little can be done about it. Each trans- contested the If the buyer whether a person volatility of stock markets and yet do Equity mutual funds 10% on gains above ~1 lakh of around 29 per cent. Second, if the action is subject to exit load and tax- complaint and purchases goods is a consumer is not want to lose out on the opportu- Debt mutual funds 20% with indexation amount of dividend falls below a ation. “Triggers are not meant for the questioned its to earn his own the purpose for nity to make gains, investing in Source: Cleartax.in threshold, it is reinvested back in the average investor; they are more suited maintainability livelihood which the goods closed-end hybrid schemes such as scheme. for the informed investor who knows on the ground through self are bought, re- CPOFs can be beneficial,” says Rajiv the client’s portfolio and help him fair value. how much she wants to earn, and is that the equip- employment, in gardless of value. Bajaj, chairman & managing director, make predictable returns with low Capital appreciation transfer plan: willing to take the risk of his/her view ment had been that case he The National Bajaj Capital. volatility over the investment tenor,” Dividend transfer plan (DTP): You can also use this tool to invest in going wrong. For long-term equity purchased for should be Commission ap- Akhil Chaturvedi, associate direc- he says. Invest your money in the dividend equity mutual funds systematically. investors, returns materialise over a commercial deemed to be a plied these princi- tor and head of sales, Motilal Oswal Since they are closed-end prod- option of a liquid fund and sign up Here, you may choose to transfer on period of time. There are good and purpose. consumer ples to Dr Kumar's Asset Management, says these funds ucts, investors have to forgo liquidity. for DTP. Each time the liquid fund a monthly basis only the capital bad years, and if you exit too soon in The Forum case. It observed can be a substitute for fixed deposits. Though their units are listed on the announces a dividend, the amount is appreciation in your source scheme a bull market the long-term return upheld the objection and that he had laboratories at “These funds are like defensives in stock exchange, they rarely trade at transferred to the equity scheme you to a target scheme. Invest in a liquid from equities will suffer,” adds Bajaj. dismissed the complaint. two locations, one of which Kumar appealed to the was looked after him and Haryana State Commission, the other by a technician. which overturned the Since only one technically BUDGET: Forum's judgement and qualified person was en- ~1 CRORE -~1.5 CRORE held the complaint to be gaged in running the labora- Arogya Sanjeevani offers wide coverage maintainable, and re- tories, the National manded it back for adjudi- Commission held Dr Kumar REALTY As affordability grows, port to a higher-end health cover or buy a top-up plan cation on merits. Feeling to be a consumer who had aggrieved, the manufacturer purchased goods for earning CHECK SANJAY KUMAR SINGH of sum insured or ~5,000 per questioned the decision by his livelihood. day), intensive care unit and filing a revision before the Accordingly, by its order Business Standard brings you a snapshot of average With medical inflation cardiac care unit charges (5 National Commission. of January 6, 2020, delivered current rates and unit sizes in localities that offer ranging between 12 and 14 per per cent of sum insured or A three-member bench by Justice V K Jain on behalf property in the price range of ~1 crore and ~1.5 crore. cent annually, buying health ~10,000 per day), ambulance of the National Commission of the Bench, the National If you are looking at buying real estate, an idea about insurance should be high on charges (~2,000 per comprising Justice R K Commission dismissed the prevailing rates would come in handy buyers’ priority list. Yet hospitalisation), and cataract Agrawal, Justice V K Jain revision. It upheld the order surveys show that 75-80 per treatment (25 per cent of sum and M Shreesha considered directing the District Forum Avg price (~/sq ft) Avg unit size (sq ft) cent of hospitalisation insured or ~40,000). There is the issue. The Bench noted to adjudicate the complaint AHMEDABAD expenses are borne by also a co-payment that even though goods pur- on merits. Science City Road 4,986 2,516 customers out of their own requirement of 5 per cent chased for commercial pur- pockets. One factor that (this percentage of claim will pose are excluded from the The writer is a consumer Vastrapur 5,835 1,992 deters many from purchasing have to be borne by the ambit of the Consumer Pro- activist Naranpura 5,548 2,048 health insurance is lack of customer). Chandkheda 3,464 3,125 faith. Buyers are not sure Arogya Sanjeevani is a whether their insurer will base-level product. First-time Paldi 5,640 2,141 reimburse a claim when it buyers who have just started Motera 3,747 3,351 arises. It is this mistrust that working or those whose Thaltej 5,688 2,200 the Insurance Regulatory and GOOD FOR FIRST-TIME BUYER salaries do not allow them to TIPPING n Jodhpur Village 6,185 2,039 Development Authority of Besides most of the and 60 days after date of buy a more expensive cover India (IRDAI) has tried to usual costs incurred on discharge covered should go for it. It may also POINT JAIPUR Arogya address with hospitalisation, treatment nDental treatment and fulfil the needs of individuals Vaishali Nagar 4,844 2,455 Sanjeevani, a standard health and families living in tier III under Ayush system is plastic surgery Mansarovar Extension 5,178 2,207 insurance product that all and IV towns, where medical Are focused funds for you? covered. No sub-limits necessitated by disease Jawahar Circle Garden 8,287 1,348 health and general insurers costs are lower. As income Focused funds, which according to Sebi guidelines can take must offer from April 1. nPre-and post- or accident covered and family size grow, exposure to at most 30 stocks in their portfolios, have Jagatpura 4,532 2,429 Sometimes, customers do hospitalisation expenses nAll daycare treatments customers can shift to a performed well over the past year. They have given an Vidhyadhar Nagar 5,572 1,976 not understand the terms and 30 days prior to admission covered higher-end plan, or buy a top- average return of 11.27 per cent. The best-performing fund has Pratap Nagar 4,800 2,238 conditions of their cover. up plan to bump up coverage. yielded 27.04 per cent. These funds have done well due to the Civil Lines 5,509 2,260 When their claim is rejected, Those who live in metros polarised nature of the equity markets. The large-cap even on legitimate grounds, which one to buy is a existing one. “Even when and want to be treated at Durga pura 6,600 1,970 category has done well. Within large caps, select stocks have they feel aggrieved. “The daunting task. This makes porting, customers need to high-end hospitals will find driven the rally. Those fund managers in the focused category KOCHI standard product will have selection difficult. “Arogya take a number of factors into the ~5 lakh sum insured who were able to latch on to these stocks at the right time and Maradu 6,189 1,821 the same features Sanjeevani will make account. Most do not have the inadequate. Those who want take concentrated bets on them have outperformed. Weigh irrespective of which insurer decision much easier time or the a higher sum insured, or Kadavanthra 6,217 1,935 your risk appetite before entering them. When markets you buy it from. Policy for buyers,” says inclination to go desire features like wellness, correct, they can take a bigger beating than diversified funds. Palarivattom 6,763 1,926 wordings will be the same. Subramanyam through the fine restore, etc. may opt for the Kakkanad 4,904 2,476 The features have been Brahmajosyula, print. Now, with a higher-end plans of insurers. Vyttila 7,139 1,859 decided by the regulator. head -underwriting standard policy, they Once insurers have POLARISED MARKET HELPED Hence, it will reduce and reinsurance, SBI can be assured that announced their prices, Returns (%) Kaloor 5,911 1,934 expectation mismatch and General Insurance. they will get the compare them, evaluate the n1 year n3 years n5 years Vennala 5,292 2,171 distrust,” says Amit Chhabra, Today, customers same coverage,” says claim servicing capability (a 17.84

Panampilly Nagar 6,977 1,793 business head, health can port to another YOUR Brahmajosyula. claim settlement ratio of 27.04 12.70

insurance, Policybazaar.com. insurer without loss This product, above 90 per cent is a good 11.78 KOLKATA 11.27 Currently, insurers offer of accumulated MONEY however, comes with yardstick to go by), and the 9.07

New Town 6,256 2,007 5.76 products with varying levels benefits. However, several restrictions list of network hospitals (the 5.22

Tangra 5,736 1,996 of coverage and prices. Doing both the sum insured and the (to ensure affordability). The best hospitals in your vicinity 1.56 a feature-versus-price coverage offered by the maximum sum insured should be included), and then Kankurgachi 8,469 1,337 Maximum Average Minimum Mukundapur 7,624 1,750 evaluation for so many second insurer can be allowed is ~5 lakh. There are decide which insurer’s products and then deciding different from that of the caps on room rent (2 per cent standard cover to go for. Source: mutualfundindia.com Beleghata (Beliaghata) 6,734 1,830 New Alipore 7,238 1,860 JM Avenue 7,000 1,889 Sealdah 7,364 1,667 would be right for you. An endowment plan An ideal cover should be such that it enables advantages. They make you disciplined by NAGPUR READER’S enables you to accumulate wealth for achiev- the family to sustain its lifestyle and meet its ensuring you invest regularly towards meet- Gandhi Sagar Lake 8,276 1,580 CORNER ing your and your family's life goals. life goals even in the absence of the regular ing your goal. You also invest in the markets Narendra Nagar 6,425 1,770 As for whether you should invest in a ~1- income from the breadwinner. If your current for a long time, thereby enjoying the advan- LIFE INSURANCE crore term plan, it is difficult to answer this term plan does not meet your requirements, tages of compounding your returns. You also New Colony 6,000 2,300 as how much life insurance you should and your existing policy does not allow you get the benefit of rupee-cost averaging over Dharampeth 7,500 1,465 purchase depends on several factors such as to increase the cover, buy a new policy for time. Ulips also help you diversify into both Raj Nagar 7,500 1,896 current income, liabilities, number of depen- the additional sum insured you require. equities and debt according to your needs. Rambagh 7,176 1,762 dants, cost of child’s education, etc. Use one They provide you the flexibility to switch TARUN of the Human Life Calculators available I am 34 years old and want to invest between them depending on market condi- Pratap Nagar 6,250 2,002 CHUGH online to understand the amount of sum ~30,000-40,000 per month to build my tions and your risk profile. Furthermore, Wardha Road 6,825 1,543 assured you need. retirement corpus. Where should I invest Ulips also offer life cover and tax benefits. VISAKHAPATNAM my money to get the maximum benefits? If you are looking at guaranteed returns Yendada 4,551 2,877 I am getting married this year and plan to Two key aspects to keep in mind while invest- from your investments, and don't want to buy a house. My annual income is ~15 lakh. I ing are your goals and your profile as an dive into market-linked plans, you may opt MVP Colony 6,400 1,897 I have an endowment plan with a ~5 lakh already have a term plan worth ~25 lakh. investor, which depends on the risk you are for traditional life insurance products that Murali Nagar 6,000 1,741 cover. I am married and have twins. Should I Should I increase my insurance cover? ready to take and the returns you expect over give guaranteed returns on maturity. You Note invest in a ~1 crore term plan? It is an excellent idea to review your life insur- time. Try some of the tools available online may also consider other conventional invest- ·The ticket price range considered for the above data points is between ~1 crore and ~1.5 crore Term plans are pure protection covers for the ance cover at every life stage you cross. You to know the type of investor you are. At 34 ment products such as fixed deposits or PPF ·All the data points discussed in the above table refer to primary family/dependants, which come into play in need to ensure continuity of your financial years, you have time on your side to build a that give guaranteed returns. Ideally, your market only the event of the death of the family's bread- goals. At the same time, you need to secure retirement corpus, and maybe you even have portfolio should be well balanced and diver- ·Above residential data set comprises of residential apartments only winner. The cover helps the family continue your family's life goals. If you are the only a higher risk-taking appetite. If you are risk sified for achieving any goal. ·Above residential data is representative of organised real estate its journey towards its life goals without hit- breadwinner in your family, you should tolerant, adopt an aggressive investment developers only ·The top performing micromarkets based on sales during last year ting a financial roadblock due to the death of review your existing life cover after evaluat- strategy and invest in market-linked funds. The writer is MD & CEO, Bajaj Allianz Life (November-2018 to October-2019) is represented on the above table the breadwinner. Since you have a ing your and your spouse's life goals, lifestyle Ulips fit in well here. They are market-linked Insurance. The views expressed are the expert’s own. ·Data points are updated till October 2019 family/dependants, opting for a term plan needs, rising inflation and healthcare costs. investment plans that come with several Send your queries to [email protected] Source: PropEquity MUMBAI | FRIDAY, 10 JANUARY 2020 BRAND WORLD 17 . < Brands battle DARK NET the troll-storm From consulting firms to tech and detergent companies, brands are busy swatting away online crusaders

NEHA ALAWADHI AKSHAY KUMAR, NIRMA: New Delhi, 9 January Following the release of its ad with Akshay Kumar t has been a rocky start to the year. With protests rag- where he stars as a I ing all around and tempers warrior in typical on a short fuse, within weeks of Maratha attire, Nirma sending out New Year greetings has faced a huge and messages of peace, social media timelines for many backlash for allegedly brands are reeling under abuse showing the community and threats of boycott. in poor light It all started out with two technology firms at the centre of a storm because two of their representatives were believed the tech companies must be Brands must to be attending an event organ- prepared to deal with the mud also know that ised by the RSS. Their mistake: being flung at their brands; he nothing is sacred mixing religion with business, added, “It won't hold ground for trolls—within which is always tricky in this to say the two individuals could hours of the poster country, said experts. have their own political or reli- about the RSS But religion is not the only gious views, they represent the event being tweet- crossed item on the 2020 list. brand as senior executives, and ed, Accenture’s old Detergent brand Nirma that has in social media parlance, their projects in India largely steered clear of any such views represent the views of were dug out, its controversies, is in the thick of the brand.” global CEO tagged DEEPIKA PADUKONE, one. Its portrayal of Maratha What must brands do to stay in tweets asking about the MEDLIFE: warriors has hurt the commu- out of the fire? company’s stand on such nity’s pride, leading to an out- “Typically in good and bad issues. Ditto for Zoho. Her decision to stand pouring of outrage online. times, sensitive and non-sensi- In the fraught times we live with the protesters at And Deepika Padukone is tive ones, my advice is to keep a in, it is not just religion that JNU has led to Medlife’s being pilloried for her support complete distance from two stokes the fires of controversy. In social media pages being for the students of JNU. Her things, politics and religion. A such instances, it may be best to movie that releases this week brand is treading on thin ice take the trolls head on. As the flooded with abusive is being boycotted and Medlife, otherwise,” said Harish Bijoor, chief marketing officer of comments and threats to a brand she endorses and one founder, Harish Bijoor Consults. Medlife.com has done in a delete the app that has also associated with What makes religion such a LinkedIn post. her movie, is fielding abusive sensitive subject? A 2018 paper She explains the brand’s cur- ZOHO CORPORATION, rants on its timeline. titled “Does Religion Sell? A rent plight and compares it with ACCENTURE SOLUTIONS: Rage and fulmination are brief journey in religion and something she faced in her ear- The companies were the norm and brands are vul- advertising,”(marginalie.hypot lier job at Big Basket. At the time nerable as they define their heses.org) may have an answer. Sharukh Khan, the brand trolled because senior online identities, said several The author says the people ambassador of the online retail- executives were to experts. “Everything on brand want controversy in their er was hounded for his com- participate in an RSS perception is formed on social advertising, but only in mod- ments about safety and toler- event. While Zoho media. Even brands that do not erate doses. They want religion ance in the country and many have an online presence, mar- to stoke their desires just as they had deleted the app. Without founder has brazened it ket themselves online,” said a want some amount of sexual offering any comment, nor play- out, the executive from senior image management undertones, but they want all ing victim to the trolls’ abusive Accenture has allegedly consultant who did not want this in small safe doses and rants, she has managed to pro- backed out to be named. She believes that brands must know the line. tect the brand said many.

> cuss ways for India to benefit from the glob- Bank for inadequate or no consideration, FROM PAGE 1 al situation,” he said. “A lot of people also the panel pointed out. It also said that spoke about a meddlesome lower-level Chanda Kochhar’s claim of no knowledge Fundamentals are bureaucracy which makes the life of entre- about the dealings was not true. preneurs difficult. Why do we need them? With respect to the apartment, not only Why can’t there be more self-attestation?” was her husband transacting with the strong...: PM Participants said Modi spoke at the end Videocon group, but her brother’s wife Bibek Debroy, chairman of the Economic of the interaction. “He admitted there were Neelam Advani was the signatory authori- Advisory Council to the Prime Minister, problems. He gave an analogy. A weak per- ty to a board resolution of CFL authorising was present. Finance Minister Nirmala son may appear healthy because there is a transfer of the apartment, according to the Sitharaman did not attend because she was lot of water retention. Now that the water findings. Deepak Kochhar was a director holding pre-Budget meetings with party has gone, finally people are calling him on an entity owned by the Videocon group workers at BJP headquarters. weak. But the truth is he was always weak,” (QTAPL) till 2014. And Chanda’s disclosures While the economic slowdown was not the source quoted first said. of such directorship were inadequate for mentioned in the meeting, a participant Modi intervened twice during the dis- the financial years 2010-11 to 2012-2013. said: “Slowdown is in the air. The entire dis- cussion, once when rural employment was cussion was in that context.” raised, and when the quality of primary While the fiscal deficit in 2018-19 stands education was mentioned. Airtel mops up... at 3.4 per cent of GDP according to the Modi has over the past few days held revised estimates, it is higher — to the tune multiple meetings with different stake- Forced by a SC judgment ordering it to of 6 per cent — if off-Budget borrowings holders over various issues affecting the pay AGR (adjusted gross revenues) and are taken into account. Participants said economy and to thrash out appropriate spectrum usage charges dues of over there were suggestions to deal with the policy interventions in the upcoming ~35,000 crore by January end, Bharti slowdown in areas including agriculture, Budget, even as India faces its worst slow- decided to raise fresh funds through a the rural sector, the auto industry, elec- down in more than a decade. combination of debt and equity to comply tronics, and consumer goods, as well as “We must all work together and start to with the SC order. It has, however, also improvements in education and health. think like a nation,” an official press state- filed a review petition in the SC challenging The participants urged the government ment quoted him as saying at the meeting. the order asking it to pay interest on dues, to focus on public investment, credit expan- The PM said he was happy the two-hour penalty as well as interest on penalty. The sion, exports growth, governance in state- open discussion had brought to the fore- industry has to fork out ~147,000 crore as owned banks, and increasing consumption front the experience of people on the part of the SC order and many companies and job creation. “A number of people spoke ground. Modi assured them that he would like Vodafone-Idea have already said they about the importance of removing policy act on suggestions that could be imple- might have to close operations. uncertainty,” a participant said. mented in the short term and also consid- In its prospectus, Bharti said in case of a Another person said given the time con- er long-term suggestions in due course. favourable SC order the company will utilise straints, each of the 35 participants was Among others, the meeting was attend- the money or part of it to augment long- given two minutes, and could give only ed by economist Ila Patnaik of the National term resources and strengthen its balance two-three suggestions, with Rajiv Kumar Institute of Public Finance and Policy, for- sheet for servicing and repayment of short timing them. The person said there were mer chief economic advisor Shankar and long-term debts, capital expenditure, discussions on increasing exports, and Acharya, R Nagraj of the Indira Gandhi long-term working capital requirement and about India benefitting more from the US- Institute of Development Research, KKR general corporate purposes. China trade war, which countries like India CEO Sanjay Nayar, Ather Energy co- Vietnam and Bangladesh were doing. “One founder and CEO Tarun Mehta, of the suggestions was whether a public- MakeMyTrip CEO Deep Kalra, Dabur India Byju’s... private institution could be set up to dis- chief Mohit Malhotra, Bandhan Bank MD and CEO Chandra Shekhar Shleifer, who set up international private Ghosh and CRISIL MD and CEO equity practice for Tiger Global, is said to be > BS SUDOKU # 2943 Ashu Suyash. as aggressive deal maker like his predecessor Lee Fixel, who left the investment firm in March. Since then, Tiger has also invested in ED likely to a host of technology-focused companies in diverse sectors including Ninjacart, CRED, attach... NoBroker and Facilio to mention a few. “Byju’s has emerged as the leader in the According to Srikrishana panel, Indian education-tech sector. They are pio- this South Mumbai residence was neering technology shaping the future of owned by an entity QTAPL of the learning for millions of school students in Videocon group between 2009 India,” Shleifer was quoted in the press and 2016. During this period, no statement issued by the edutech firm. rent was paid and no considera- tion was given for such residence, the panel had said. RBI approves... Further, the apartment seems to have been transferred in 2009 However, experts pointed out that consid- to the Videocon group presum- ering these applications were of foreign ori- ably to satisfy a liability of Deepak gin, the RBI would unlikely allow them. Kochhar or his business Under the data protection Bill, the central Credential Finance (CFL), owed bank is unwilling to let companies store SOLUTION TO #2942 Medium: to Videocon group. It was subse- customer data in foreign locations.  quently re-acquired by Deepak The RBI master direction did not Solution Kochhar (indirectly by the family mention what application can be used tomorrow Trust acquiring 100 per cent of for video chat. But experts say it is like- QTAPL which owned the house) ly that the government will have to HOW TO PLAY for nominal consideration. develop such an app specifically for Fill in the grid so The said transactions—rent- video-KYC whose servers will be located that every row, free residence at the apartment onshore. The RBI accepted the recom- every column and the transfer of the apartment mendations and amended its master and every 3x3 for nominal consideration—were direction on KYC. box contains in arrangement with a borrower the digits 1 to 9 group (Videocon) of the ICICI More on business-standard.com 18 MUMBAI | FRIDAY, 10 JANUARY 2020 1 > India lost over$1.3 bn to Anaverageof80murders,91rapes Netshutdowns lastyear reporteddailyin2018:NCRBdata n average of 80 murders, A289 kidnappings and 91 Study pegs global loss at $8 billion, says India third-most impacted country rapes were reported daily across the country in 2018, said NEHA ALAWADHI Kashmir, which was imposed on the National Crime Records New Delhi, 9 January 4 August, is the longest-ever Bureau (NCRB) in its report internet block imposed by any ‘Crime in India’ in 2018, ndia lost over $1.3 billion country. It has now been over 158 released on Wednesday. in internet shutdowns days and counting, since internet According to the NCRB, though I across the country — last- access was cut off in Kashmir. the overall crime numbers ing 4,196 hours in 2019 — mak- FAST “The most significant dis- show an increase of 1.3 per cent ing it the third-most economi- FACTS ruptions have been in the tur- in registration of cases over cally affected country after Iraq bulent Kashmir region, where 2017 (50,07,044 cases), crime and Sudan, says a new study. after intermittent shutdowns rate per 100,000 population The report, titled The Global in the first half of the year, has come down from 388.6 in Cost of Internet Shutdowns, in access has been blocked since 2017 to 383.5 in 2018. "West 2019 by internet research firm August, with no end to restric- Bengal, Bihar, Odisha, Top10VPN, worked on calculat- tions in sight,” the report noted. Uttarakhand, Meghalaya, Goa, ing the data in major regions of In contrast, Iraq — which Chandigarh, Daman & Diu, the world using the COST tool. suffered the highest economic Delhi, Lakshadweep and The tool was developed by inter- 122 11,857 hrs 6,368 hrs impact from internet shut- Puducherry reported zero net monitoring NGO Netblocks Major shutdowns took Internet blackouts Social media downs, was hit by $2.3 billion suicides of farmers/cultivators and advocacy group The place in 21 countries shutdowns and 209 hours of blackouts. as well as agricultural Internet Society, and uses indi- Iraq Most The most significant inter- labourers," the NCRB report cators from the World Bank, 18,225 hrs economically WhatsApp net blackouts were in October said. The NCRB, under the ITU, Eurostat, and US Census. Duration of major Most blocked amid anti-government Union Ministry of Home The total cost of internet impacted nation, protests due to rising unem- Affairs, is responsible for platform shutdowns across the world, shutdowns around followed by ployment, failing public serv- collecting and analysing crime according to the report, stood at the world Sudan and India globally ices and corruption, the data as defined by the Indian 10,349 People working 5,763 of farmer suicides 129,887 people ended $8.05 billion in 2019, an increase Source: Top10VPN.com Top10VPN report said. Penal Code and special and in the farm sector ended in 2018 were farmers/ their lives in 2017. The of 235 per cent since 2015-16. Sudan suffered the second local laws in the country. Uttar their lives in 2018 cultivators and 4,586 figure increased 3.6% the The report also looked at of the report. “As they tend to billion figure,” they added. highest impact at $1.87 billion, Pradesh, the most populous agricultural labourers next year data collated by not-for-profit be highly targeted — even An April 2018 report by the and 864 hours of blackouts. state with 16.9 per cent share of 134,516 Suicides in the legal services organisation down to the level of blacking Indian Council for Research on Countries across the world the country's population, has country in 2018. Farm 29,017 murder cases were registered in 2018, an Software Freedom Law out individual city districts for International Economic also put blocks selectively on reported comparatively lower sector saw 7.7% of it increase of 1.3% over 2017 (28,653 cases) Foundation. Its internet shut- a few hours while security Relations (ICRIER) estimated specific online platforms. percentage share of suicidal 11,379Farmers 10.3% jump witnessed in 2018 in kidnapping and down tracker for India calcu- forces try to restore order — the economic impact of inter- WhatsApp was the platform deaths, accounting for only 3.6 committed suicide in 2016 abduction cases lated 106 shutdowns in 2019. many of these incidents have net shutdowns in India from that saw the highest number of per cent of the total suicides in 2017 Farm suicide “India imposes internet not been included in this 2012-17 at $3.04 billion, and the shutdowns globally at 6,236 the country in 2018. 378,277cases registered 359,849 was the figure restrictions more often than report, which instead focused overall number of hours of hours. Facebook was second, Delhi has reported the highest data not public. The year saw sustained farm under the 'crime against in 2017 and 3,38,954 in any other country, with over on larger region-wide shut- shutdown worked to 16,315 blocked globally for 6,208 hours, number of suicides (2,526) women' category in 2018 2016 100 shutdowns documented in downs. The full economic hours. followed by Instagram (6,193 among UTs, followed by protestsin several parts of 2019,” said Samuel Woodhams impact is, therefore, likely to It has been reported globally hours), Twitter (5,860 hours) Puducherry (500). the country COMPILED BY ARCHIS MOHAN and Simon Migliano, authors be higher even than our $1.3 that the internet shutdown in and YouTube (684 hours). Censuswillseek infoontoilets,TV, vehiclesownedandmobilenumber

PRESS TRUST OF INDIA whether the family owns a telephone, hold. New Delhi, 9 January mobile phone, smartphone, bicycle, Questions related to main source of scooter, motorcycle, moped, car or lighting, whether the family has access Enumerators of the census will seek van, radio or transistor, television, lap- to a toilet, the type of toilet, waste water the mobile number of the head of the top or computer or has access to the outlet, availability of bathing facility, family, information related to toilets, internet. availability of kitchen and LPG/PNG TV, Internet, vehicles owned, source Information will be sought on build- connection and main fuel used for of drinking water, besides asking other ing number (municipal or local author- cooking will also be asked by the enu- questions during the houselisting ity or census number), census house merators, the notification said. phase of the exercise. number, predominant material of the The 2021 census will be conducted In a notification, the Registrar floor, wall and roof of the census house, through a mobile phone application, General and Census Commissioner use of census house, condition of the moving away from the traditional pen said the census officers have been census house, household number, num- and paper. The census will have its ref- directed to ask as many as 31 questions ber of persons normally residing in the erence date as March 1, 2021, but for to collect information from every household, name of the head of the snow-bound Jammu and Kashmir, household during the houselisting and household and the person’s sex. Himachal Pradesh and Uttarakhand it housing census exercise scheduled The numerators will ask whether the will be October 1, 2020. from April 1 to September 30. head of the household belongs to a The central government has also The notification, however, made it Scheduled Caste or Scheduled Tribe or decided to prepare a National clear that the mobile number will be Other category, ownership status of the Population Register (NPR) by sought only for census-related com- house, number of dwelling rooms September 2020 which will be carried munications and not for any other exclusively in possession of the house- out along with the houselisting phase of purpose. hold, number of married couple(s) liv- the census. The other information that will be ing, main source of drinking water, and The NPR will be a list of usual resi- sought from every household is: main cereal consumed in the house- dents of the country.

Trump’s tariffs cost US companies$46bn

Tariffs imposed by President Donald Trump to restruc- ture the United States’ (US’) top trade relationships have cost American companies $46 billion since February 2018, and US exports of goods hit by retaliatory tariffs have fallen sharply, according to an analysis of Commerce Department data. The lion’s share of the higher tariff costs, some $37.3 billion, stemmed from duties on imports from China, said Washington-based consultancy Trade Partnership Worldwide, which calculated cumulative tariff costs through November 2019, the latest data available. Exports of US goods hit by retaliatory tariffs from China and other countries fell by 23 per cent in the 12 months ended November, compared with 2017, before the tariffs began, the analysis showed. Even when retaliatory tar- iffs have ended, those exports haven't bounced back, said Trade Partnership Vice-President Dan Anthony. Meanwhile,China’s Vice-Premier Liu He is slated to sign a Phase 1 trade deal at the White House on January 15, China’s commerce ministry said on Thursday. REUTERS Tesla’s m-cap zooms past that of GM and Ford, combined For the first time, Tesla’s stock market value has eclipsed the combined val- ues of General Motors and Ford Motor. The electric car maker’s stock jumped nearly 5 per cent on Wednesday, closing at a record $492.14 per share and elevating its market cap- italization to almost $89 bil- lion, or $2 billion larger than the sum of General Motors’ and Ford’s respective mar- ket caps (m-caps) of $50 bil- lion and $37 billion. Fuelled by a surprise third- quarter profit, progress at a new factory in China and bet- ter-than-expected car deliver- ies in the fourth quarter , Tesla’s stock has more than doubled in the past three months. REUTERS