FRIDAY, 8 MARCH 2019 18 pages in 1 section www.business-standard.com MUMBAI (CITY) ~8.00 VOLUME XXIII NUMBER 147 THE MARKETS ON THURSDAY Chg# Sensex 36,725.4 89.3 Nifty 11,058.2 5.2 COMPANIES P2 ECONOMY&PUBLIC AFFAIRS P4 Nifty futures* 11,098.2 40.0 Dollar ~70.0 ~70.3** Euro ~79.2 ~79.5** HONDASEES HYBRID AS KASHI VISHWANATH HERITAGE Brentcrude ($/bbl)## 66.5## 65.3** Gold (10 gm)### ~31,975.0 ~120.0 FUTURE TO GREEN STRATEGY ZONE: REDOING HISTORY *(Mar.) 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 NGT SLAPS ~500-CR BUSINESS STANDARD INSURANCE ROUND TABLE FINE ON VOLKSWAGEN Centre pushes The National Green Tribunal (NGT) on 18%GSTonpremiumis Thursday slapped a fine of ~500 crore on German carmaker Volkswagen for the presence of cheat devices in their diesel cars in India. The carmaker has been asked to brutal:Irdaimember deposit the sum with the Central Pollution forrevival of Control Board (CPCB) within two months. The money, NGT said, could be used by the BS REPORTER er countries, including developed mar- CPCB to improve the air quality in and Mumbai, 7 March kets, “do not charge any tax on insur- around the Delhi-NCR. 2 > ance premiums”. powersector The levying of an 18 per cent tax on The government must also allow sep- insurance premiums is detrimental to arate tax breaks for pension products of Jetgrounds three more improving the penetration of insurance insurance companies, in line with planes, takes total to 28 in the country and should be rolled ~50,000 separate head made for the new Cabinet approves new projects, hydropower policy, back, said Nilesh Sathe, a member of pension scheme, he said. Sathe encour- Jet Airways said on Thursday it grounded the Insurance Regulatory and aged e-commerce firms to enter the three more aircraft as it failed to make revival scheme for stressed assets in its last meeting Development Authority of India (Irdai) insurance sector, saying it would payments to its lessors, taking the tally of and chief guest at the annual insurance improve the awareness and penetration planes hit by the defaults to 28. With debts of SHREYAJAI round table of Business Standard. of insurance products. more than $1 billion, the carrier has defaulted New Delhi, 7 March “With low social security provisions “Let the Amazons and the Flipkarts on loans and has not paid pilots, leasing happening or possible in India, charging come into insurance. I am sure there will firms and suppliers for months. REUTERS he central government has premiums at 18 per cent GST (goods and be more and more people who will cleared projects and schemes services tax) is brutal,” Sathe said in his appreciate and buy insurance as its pen- totalling ~31,000 crore to boost keynote address on Wednesday. “Do you etration and density is low... There is a lot BACKPAGE P18 T investment in the languishing think increasing penetration in India is of market,” he said. > Turn to Page 15 Sonia Gandhi to contest power sector. The Cabinet Committee on the responsibility of Irdai or insurance Economic Affairs (CCEA) approved two companies only? It is the responsibility of MORE STORIES P11 LS polls from Raebareli thermal power and two hydropower proj- every stakeholder, including the gov- >‘Millennialsaskquestions,chooseproductsbetter’ The Congress on Thursday released its first list ects, a hydropower scheme and a revival Nilesh Sathe says govt has a role to play ernment,” he said, adding that Irdai had >‘Insurance firms cannotbeassessed on of 15 candidates for the Lok Sabha elections, scheme for stressed assets on Thursday, in improving insurance penetration informed the government that most oth- quarterly basis’ fielding UPA Chairperson Sonia Gandhi from probably the last Cabinet meeting before Raebareli and party president Rahul Gandhi the Lok Sabha elections. from Amethi. The announcement put an Hydropower has been devoid of end to speculation that Sonia Gandhi may investment for a decade. In this seg- not contest in the polls due to health ment, any projects above 25 Mw in APPROVED AnaljitSinghplanstosellstake, reasons and the party’s general secretary capacity would now come under the cat- in-charge (East UP) Priyanka Gandhi Vadra egory of renewable energy. This would PROJECTS may be fielded from her constituency. entail a hydro power purchase obliga- tion on states and get it priority status. Buxar Super CAPACITY realestatetorepayloans With this, India would achieve one of Thermal 1,320 MW THE SMART INVESTOR P10 the targets it has committed to under Power Project COST Markets have priced in the global climate change treaty for SURAJEET DAS GUPTA PROMOTER OWNERSHIP STATUS reducing of emissions — sourcing 40 (Bihar) ~ 10,439 cr New Delhi, 7 March Modi win, say analysts Listed Promoter % of Firms under per cent of its total energy consumption CAPACITY Markets are already pricing in a victory for from renewable sources. Khurja Max group promoter Analjit Singh has holding co. holding shares the holding the Narendra Modi-led National R K Singh, minister of state for power Super Thermal 1,320 MW put together a plan to sell a minority stake (%) pledged company Democratic Alliance in the upcoming and new & renewable energy, said budg- Power Plant COST in Max Financial Services (MFSL), the MFSL 28.30 75.59 MaxLife general elections, say analysts. Even though etary support would be provided for (UP) ~11,089 cr holding company of Max Life, as well as MaxBupa, stocks may remain volatile in the run-up to allied infrastructure of hydro power some real estate assets to repay loans it MIL 40.96 73.55 Antara, Max CAPACITY the polls, as political parties stitch up units, to contain the cost. Kiru hydro had raised through the pledging of pro- Healthcare alliances, the long-term trajectory for the “Budget support for funding cost of power 624 MW moter shares in two listed companies. markets remains bullish, they add. So far the flood moderation component, According to merchant banking sources, MaxEstates, this year, the benchmark Sensex and the enabling infrastructure such as roads project COST the process is expected to be completed in MVIL 47.16 --- MaxSpeciality Nifty50 indices have gained 1.5 per cent and and bridges, would be given on case to (J&K) ~4,288 cr four to six months. Films, MaxI 1.7 per cent, respectively. case. This would be limited to ~1.5 crore CAPACITY The promoters have, however, decid- MFSL:Max Financial Services per Mw for up to 200 Mw projects and Teesta ed not to sell off or merge the life insur- MIL: Max India ~1 crore per Mw for above 200 Mw proj- Stage-VI hydro 500 MW ance business with a strategic investor as MVIL: Max Ventures & Industries ECONOMY&PUBLIC AFFAIRS P6 Note: The group has announced sale of promoter stake in Max Founder Analjit Singh is set to ects,” he told reporters. power project COST they nearly did a few years ago. Max Life’s Healthcare and Max Bupa US trade deficit with Turn to Page 15 > (Sikkim) ~5,748 cr proposed merger with HDFC Life was Source: Max group be back in active role called off in July 2017. India drops for2nd year Singh is also planning to sell 5 per cent Days after the United States cut off India’s Sugarmillsgetfresh RELATED REPORTS 4> of his 12 per cent stake in the entity control over 28.3 per cent in MFSL and as well as Max India, sources in the know duty-free access to the American market formed after the merger of KKR-backed 40.96 per cent in MIL. said. He will also become group chair- under its largest preferential trade scheme, softloanof~15,500cr > MORE POWERS FOR GoM DECIDING ON Radiant Life Care and Max Healthcare, The $3-billion group might also con- man, as against the current designation of the Generalized System of Preferences (GSP), which will run the hospital business. sider selling off its specialty films busi- chairman emeritus. The Cabinet on Thursday cleared an PRIVATISATION OF STATE-OWNED FIRMS official figures from Washington DC showed As of January 31, 2019, the promoters ness in which it has a 49 per cent stake. The promoters, who recently sold their extra soft loan of ~15,500 crore to that its trade deficit has actually fallen over > NOD TO PHASED MANUFACTURING PLAN pledged 75.59 per cent of their stake in Singh, who earlier decided to play only 51 per stake in health insurance firm Max boost ethanol capacity in sugar the past two years, with this figure slipping FOR BATTERIES MFSL and 73.55 per cent in Max India a mentoring role in the group and with- Bupa to True North, will now concentrate mills. The government will bear an to $ 21.3 billion in 2018. In 2017, the US' trade (MIL), the holding company of its health- drew from the boards of his companies, is on insurance, real estate, hospitality and expenditure of ~3,355 crore as interest > ORDINANCE ON RESERVATION ROSTER deficit with India was $22.3 billion, down care, health insurance and senior living set to play an active role again by re-enter- another new business, which is still to be subvention for this. 4 > FOR VARSITY FACULTY from $24.4 billion in the previous year. businesses, to the lenders. The promoters ing as non-executive chairman in MFSL finalised. Turn to Page 15 > INTERNATIONAL WOMEN’S DAY PHOTO: IOC GIC to subscribe to Airtel rights issue MEGHA MANCHANDA WHO OWNS HOW MUCH The promoters hold 67 per cent New Delhi, 7 March in Bharti Airtel and the issuance Bharti Airtel shareholding pattern (as of December 2018) of shares under the rights issue SUZLON TO REJIG Bharti Airtel on Thursday said Public Others 0.04 would be in line with the share- GIC, formerly known as 32.82 holding.