12 KOLKATA | WEDNESDAY, 29 JULY 2020 1 > Draft 2.0: Import ban on specific arms

AJAI SHUKLA up maintenance, repair and over- New Delhi, 28 July haul (MRO) facilities for the equip- ment, including through the foreign he Ministry of Defence (MoD) RAFALES RE-FUELLED MID-AIR ON WAY HOME vendor’s subsidiary in India. on Tuesday issued a second The draft DAP-2020 details the T draft of the Defence procedures for “leasing” of equip- Procurement Procedure of 2020 ment and platforms. Leasing is (DPP-2020) and solicited comments expected to save money by permit- by August 10, four months after it put ting the military to rent back-up out the first draft of the new manual equipment and services, such as air that will supersede and update the transport, mid-air refuelling, current DPP-2016. MRO and simulator training, rather “Based on inputs received from than incur huge capital outlays in the environment, DPP-2020 has now buying outright. been titled as Defence Acquisition In addition to a full new chapter Procedure (DAP) 2020,” stated the on “leasing”, the draft DAP-2020 MoD. Driving this terminological also incorporates a new chapter for change is the conviction that the pol- procuring equipment and platforms icy should look beyond procurement based on software and information N COVID-19 UPDATES N (purchase) of equipment and provide and communications technology for alternatives such as leasing and (ICT). Given the rapid obsolescence upgrading. India’s first batch of Rafale fighter jets being re-fuelled mid-air from a French Air Force tanker before their of ICT-based systems, more flexible PfizerandBioNTech The draft DAP-2020 retains the scheduled stopover at the Al-Dhafra Air Base in the United Arab Emirates PHOTO: PTI procurement processes are needed first draft’s emphasis on promoting to keep up with change. higher indigenous content in equip- Another new chapter deals with startlate-stagestudy ment manufactured in India, includ- Acquisition category Indigenous content (IC) ‘post-contract management.” This ing under licence from foreign ven- INDIGENISATION lays down guidelines and processes dors. For most acquisition categories, TARGETS FOR Buy (Indian – Indian-Designed, Indigenous design essential; for issues that arise during the con- ofleadCovid-19 shot the DAP-2020 will demand 10 per cent VARIOUS Developed and Manufactured) ≥ 50% IC tract period, which typically last for higher indigenisation than under Buy (Indian) If indigenously designed, ≥ 50% IC; if several decades in defence PfizerandBioNTechSEsaid stagesafetyandefficacytrial DPP-2016. (see graphic) ACQUISITION foreign designed ≥ 60% IC contracts. they’vebegunalater-stage oftheexperimentalshotina For the first time, the MoD propos- CATEGORIES While aiming at speeding up pro- trialfortheirtopcoronavirus two-doseregimen.The es to incorporate into official policy a Buy and Make (Indian) ≥ 50% IC, calculated on the ‘Make’ portion curement, the new procedure mar- vaccinecandidateandseta announcementcamein ban on import of specific kinds of Buy and Make ≥ 50% IC ginally slows the Fast Track goalofsubmittingitfor anticipationofPfizer weapons and platforms. Procedure, which is designed for regulatoryreviewassoonas reportingsecond-quarter “With a view to promote domestic Buy (Global - Manufacture in India) ≥ 50% IC emergency purchases. DPP-2016 October—oneofthemost earningsonTuesday. and indigenous industry as also align Buy (Global) Foreign vendor — Nil IC requirement mandated a maximum period of 112- ambitioustimelinesto date. Governmentsaroundthe the DAP with the reforms enunciated Indian vendor ≥ 30% IC 169 days for concluding a contract, Themove pushestheNew worldarenowlookingto in the Atmanirbhar Abhiyan (self-reli- including the time for trial York-basedpharmaceutical lockupsuppliesofthestill- ance campaign), the MoD will notify evaluation. DAP-2020 stipulates a giantanditsGermanpartner experimentalcandidates. a list of weapons/platforms banned The MoD has also introduced a Meeting this would require ven- slightly longer period of closerto bringingavaccine Eachhashopesofstabil- for import, updated from time to new procurement category, entitled dors to supply only the minimum 122-231 days. In both cases, delivery to market,andplacesthem isinglocaleconomiesand time,” the draft states. Buy (Global — Manufacture in necessary numbers from abroad in of equipment would take another alongsidefrontrunnerslike stoppingspreadofthevirus It is unclear whether this “no tanks, and missiles. India). This stipulates indigenisa- ready-built condition, while man- 3-12 months from the date of con- ModernaInc,whichanno- that’stakenmorethan import list” will be aligned with the DPrP-2018 also stipulates raising tion of at least 50 per cent of the con- ufacturing a larger share in India. tract signing. uncedearlierMondaythatit 650,000livesglobally. Last MoD’s Defence Production Policy exports to $5 billion annually by tract value of a foreign purchase The category also allows vendors The new procedure is being hadstarteditsownlarge, week,PfizerandBioNTech (DPrP) of 2018, which mandates self- 2025, and producing goods and serv- bought with the intention of sub- to meet the indigenous content drafted by an MoD committee final-stagetrialofashot clincheda$2billiondealto reliance by 2025 in the production of ices worth $26 billion to create sequently building it in India with requirement through manufactur- headed by its acquisitions chief, basedonsimilartechnology. supplyaninitial100million helicopters, fighter aircraft, warships, employment for 2-3 million people. technology transfer. ing spares and assemblies, or setting Apurva Chandra. PfizerandBioNTechsaid dosesofavaccineto theUS. thattheyhadselectedalead Thatsetapriceceilingofless vaccinecandidatefrom than$20perdose,whichwill withinabroader likelyimpacthowmuch developmentprogramme otherswillcharge. ThierryBollorétakesthewheelatJLR plans flights andwillproceedwithalater- BLOOMBERG SHALLY SETH MOHILE To betterfacetheuncertaintimesahead,andto findways to Europe in August Mumbai, 28 July ofinvolvingUKgovernmentinthesolution,”saysMunoz. Bollorétakeschargeatatimewhenautodemand Joining the repatriation the second Boeing 787-9 air- Lockdown Mumbai has appointed Thierry Bolloré as chief execu- remainsunderpressure, followingtheeasingofthe efforts to bring Indians craft will arrive in August. tive officer (CEO) of , following a six- shutdownmeasuresthatweighedoneconomiesaround stranded abroad, Vistara Vistara has filed for slots extended seeslowest month search. Bolloré, 57, who was Group CEO theworld.JLRwasonroughterrainevenbeforethe plans to operate flights to at Delhi airport and has start- till October 2019, will take charge on pandemic,sufferingfromasalesdownturn,theBrexit London, Paris, and Frankfurt ed training its pilots as it pre- inBengal dailycases September 10. He will succeed Ralf Speth, uncertainty,stricteremissionnormsaffectingitssport from mid-August. pares for the operations. The who was at the helm for a decade. Speth utilityvehiclesegment,andadipinexportsto China— The flights would be oper- Delhi-London flight is being WestBengalChiefMinister Only 700 new Covid-19 cases will now take up the role of non-executive oneofitsbiggestmarkets. ated from Delhi under the planned from mid-August, MamataBanerjee were reported in Mumbai vice-chairman, and remain on the Tata “ThemostimportantthingforJLRisto getitscostact travel bubble and would while Paris and Frankfurt announcedonTuesday that today that too with the high- Sons board. The flagship has together.Therefore, thetop-mostpriorityofthenewCEO mark a milestone in service will be launched in thelockdowninthe est single-day testing till chosen the Frenchman over a few internal shouldbeto stay oncourseforcostreduction,anddrive the airline’s growth. late August and early containmentzonesofthe date, said Maharashtra candidates, who were vying for the top job. thecompanytowardsfreecashflows,”saidMahantesh Building an inter- September. statewillcontinuetill Cabinet Minister Aaditya “I am delighted to welcome Thierry to Sabarad,head(retailresearch),atSBICAPSecurities. national medium- “Vistara has August31asalsothe Thackeray on Tuesday. Jaguar Land Rover. An established global JLRhasembarkedonacost-cuttingdrive aimedat haul network has around 20 pilots for biweeklyrestrictionsin He said a total of 8,776 business leader with a proven track record saving£5billion($6.4 billion)andreversingrecordlosses. always been its 787 operations, placeto checkthespreadof tests were conducted on of implementing complex transformations, Priorto joiningRenaultin2012,Bolloréhadstintswith Vistara’s strat- each of them with thecoronavirusdisease. Tuesday, out of which only Thierry will bring a wealth of experience to one tyremajorMichelin,aswellasFaurecia,agloballeaderin egy. Plans were drawn over 500-600 hours of Banerjeesaidschoolsand 700 tests were found positive of the most revered positions in the industry,” automotive technology. to launch flights to London, flying experience. A few collegeswillremainclosed in the financial capital, news said N Chandrasekaran, chairman, . AformerNo.2atRenault,Bollorésecuredthetopjob Tokyo, and Moscow in the more pilots are undergoing tillAugust31."Thelockdown agency ANI reported. FelipeMunoz,senioranalystatJATO afterthearrestofCarlosGhosnin2018.Hewasousted summer schedule, but the training and this will allow incontainmentzoneswill "The good news: Only 700 Dynamics,UK,saysBolloré’smain whentensionswithpartnerNissanMotorpeaked,last pandemic had forced it to go the airline to operate both the continuetillAugust31.The cases today in Mumbai and strengthisthatheprovedin October.RenaultChairmanJean-DominiqueSenardhad slow. Now, the airline is look- planes to Europe by biweeklytotallockdown that too with the highest test- Renault,thathecanruna thensaidthatBolloréhadto gofortherelationshipwith ing to operate scheduled September,” a source said. acrossthestatewillalsorem- ing till date in Mumbai in a companythroughdifficulttimes. itsJapanesepeerto revive. Amidslowingglobalgrowth, flights to Europe, with the “Updates with regards to aininplacetilltheendofne- single day (8,776).This is He’s goodatdealingwith increasedregulatorychanges,andthepandemic,JLRis proposed induction of its sec- international operations will xtmonth,"Banerjeesaid. chase the virus in full capac- governmentissuestoo. "These executingaturnaroundandtransformationplanto ond Boeing 787-9 aircraft be provided at an appropriate Totallockdownwillbeimp- ity. A major relief after three twostrengthsareexactlythe deleveragethebusinessanddrive positive cashflows,for next month. Currently, time,” Vistara said in an osedonAugust2,5, 8, 9, 16, months," said Thackeray, in thingsthatJLRneedsrightnow. whichBolloré’strackrecordmaycomeinhandy. Vistara has 42 aircraft, while email. ANEESH PHADNIS 17,23,24and31,shesaid. PTI a tweet, on Tuesday. AGENCIES ILLUSTRATION: BINAY SINHA

N AROUND THE WORLD N Former Malaysian MitsubishitodiscontinuePajerofromnextyear Japan’s No. 6 automaker anticipates an operating loss of $1.33 bn

PM gets 12-yr jail REUTERS ending on March 31, 2021, due a quarter of its sales. Tokyo, 28 July in part to the coronavirus Announcing a restructuring pandemic. plan on Monday, Mitsubishi Shares of Japan’s Mitsubishi It would be the automaker's Motors said it would stop term in 1MDB case Motors Corp plunged more than biggest loss in at least 18 years, making the Pajero SUV 10 per cent to an all-time low on according to records dating crossover model next year, and Najib Razak was found Tuesday after the automaker back to 2002. Mitsubishi’s close the plant in Japan that guilty of corruption, posted dismal sales in its key shares fell more than 10 per makes it. It also said it would Southeast Asian market and cent to 240 yen, marking a reduce its presence in Europe money laundering; forecast a huge loss for this lifetime low since their 1988 and North America and focus financial year. listing. on growing in Asia. The fined $50 million A day earlier, Mitsubishi The coronavirus crisis has restructuring plan is designed A Malaysia court sentenced former Motors, a junior member of the exacerbated struggles at the to lift the company's operating prime minister Najib Razak to 12 auto alliance of Nissan Motor company, which had already profit to 50 billion yen in years imprisonment after ruling him and Renault SA, projected an been battling falling sales in 2022/23 and boost operating guilty in the first of a series of trials A worker makes a final inspection of an engine for Pajero at a operating loss of 140 billion yen China and Southeast Asia, a margin to 2.3 per cent from -9.5 linked to 1MDB. manufacturing unit in Japan’s Gifu PHOTO: BLOOMBERG/FILE ($1.33 billion) for the year major market that accounts for per cent now. Najib was guilty Tuesday of all seven charges in the case involving He must also pay a fine of 210 mil- 42 million ringgit ($10 million) of lion ringgit. The judge told the court funds deposited in his personal he found “the defense has not suc- GOProllsout$1-trn Googledatacableto McD’s revenue falls 30% as accounts from a former unit of ceeded in rebutting the presump- 1MDB. His lawyer has said an appeal tion on the balance of probabilities lockdownlimitsoperations against the ruling is a certainty, while or raising reasonable doubt on the Covid-19 reliefplan linkUS,UK & Spain McDonald’s on Tuesday reporteda bigger-than- seeking to keep him out of jail during charge against the accused” as he expected drop in global same-store sales as the appeal process. delivered his judgment on the abuse SenateRepublicanspresentedtheir Alphabet’sGooglehascommissionedanew restaurants across the world were shut because of High Court Judge Mohd Nazlan of power charge. The verdict comes $1trillionplanto bolsterthepandemic- subseacable,whichitsayswillbeoneofthe the pandemic, limiting operations to only drive- Mohd Ghazali sentenced him to 12 days after Malaysia resolved settle- ravagedUSeconomyinaseriesofbillsthat firstnewfiberlineslinkingtheUSandthe thru and delivery. Global same-store sales fell years in jail for one count of abuse ment talks with Goldman Sachs wouldtrimextraunemploymentbenefits, UKsince2003andfurtherentrenchesthe 23.9 per cent for the second quarter ended June of power, as well as 10 years each for Group Inc. over the bank’s role in send$1,200paymentsto mostAmericans techgiantinglobalinternetinfrastructure. 30, draggeddown by big international markets three charges of money laundering raising funds for 1MDB during andshieldbusinesses,schoolsandother Thecable,namedGraceHopperafterthe including the UK, France and Latin America. and three criminal breach of trust Najib’s time as prime minister. organizationsfromlawsuitsstemming computerscientist,willalsoconnectto Revenue fell 30.5 per cent to $3.76 billion, but charges, to be served concurrently. BLOOMBERG fromcoronavirusinfections. Spain,becomingthefirstGooglefiberlineto landthere, the beat the estimate of $3.68 billion. BLOOMBERG Thepackagewaspulledtogetherafterdaysofnegotiations companysaidinastatement.ItjoinsexistingGooglesubsea betweenSenateRepublicansandPresidentDonaldTrump’s cablesincludingGoogle’s Curie,whichrunsfromtheUSto emissariesthatdidn’tcompletelysettledifferenceswithinthe Chile,andDunant,whichlinkstheUSto France,andEqui- Intel begins reset, chief GOPoverthesizeandscopeofadditionalfederalspendingin ano.TheMountainView,California-basedcompanyexpectsto responseto thepandemic.“Wehave onefootinthepandemic completetheprojectin2022.Asteady streamoftrans-ocean engineer ousted andonefootintherecovery,” SenateMajorityLeaderMitch cablesisbeingannouncedby techgiants;Facebookjoined IntelCorp’s ChiefEngineeringOfficerMurthy McConnellsaidMondayontheSenatefloor,notingtherising forceswithtelecomcarriersto betterconnectAfricainMay. Renduchintalaisdeparting,partofamove in deathtollandafragileeconomicrecovery.“TheAmerican “Once commissioned, the Grace Hopper cable will beone whichakeytechnologyunitwillbeseparatedinto peopleneedmorehelp,theyneeditto becomprehensive, and of the first new cables to connectthe US and UK since 2003, five teams,thechipmakersaidonMonday. theyneeditto becarefullytailoredto thiscrossroads.” Thebill increasing capacity on this busy global crossroads and pow- Intelsaiditisreorganisingitstechnology,systems introductionswere justthefirststeptowardnegotiatinga ering Google services like Meet, Gmail and Google Cloud,” said architectureandclientgroup.Itsnewleaderswill compromiseplanwithDemocrats,who’veofferedtheirown Bikash Koley, vice-president of Google Global Network, in a reportdirectlyto CEO BobSwan. $3.5trillionstimulusplan. BLOOMBERG blogpost. BLOOMBERG REUTERS