NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*
232
SENSEX NIFTY
38,989.74 11,573.30
396.22 133.10
mint primer
Investing better
in citizens is key
to India’s growth
BY HARSH GUPTA
Population pyramids, which show the age and sex distribution of any
country, help us understand how demographic transition plays out
and speculate about its medium-term economic prospects. Mint takes
a look at the pyramids for India and China and their implications.
India’s demographic edge over China
India has 650 mn people in the working-age group of 25-65, while China has
830 mn. By 2040, India will have 170 mn more working-age people than China.
Age group
India >=80
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 70 60 50 40 30 20 10 0
How should we read
1 these pyramids?
Generally, males are shown on the
left-hand side and females on the
right. Also, the convention is that
age distribution is done in cohorts
of five years, with the age rising as
we go vertically upwards. The
pyramid shape changes over time
due to births, deaths and net
migration. A quick look above
shows that India’s pyramid, like
the actual pyramids in Egypt, is
bottom heavy. That is, the Indian
population has a larger proportion
of children, teenagers and young
adults compared to China’s. We
can also observe that except for the
oldest groups, India seems to have
more males than females for every
cohort.
4 Isdestiny
demography
then?
Just having people in the working
age is not enough. How many are
in the labour force and their
productivity are important. People
pursuing education and home-
makers are mostly the ones to drop
out of the labour force, women
more so. But after a fall in female
labour force participation for 10
years or so, there are early signs of
improvement. On productivity,
Indians about to enter the 25+ age
group have almost universal
literacy across both the genders
and many are “digital natives” even
in lower income groups.
m MINT SHORT
Amazon brings Samuel Jackson’s voice to Alexa
Jeffrey Dastin
feedback@livemint.com
SEATTLE
A
mazon.com, Inc. on Wednesday
said actor Samuel L. Jackson and
other celebrities will voice
speech for the firm’s virtual assistant
Alexa, one of a range of new features
designed to woo more users to the ser-
vice. The news, along with announce-
ments of a new range of voice-controlled
Echo speakers, a multilingual mode for
Alexa and a privacy feature for deleting
voice recordings regularly, underscores
FRIDAY, SEPTEMBER 27, 2019
LIVEMINT.COM
DOLLAR
₹70.88 ₹77.51
₹0.16
Population (in mn) Age group
Male Female
>=80
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
0 10 20 30 40 50 60 70
PARAS JAIN/MINT
What do they say
2 about demographics?
India’s population for the age
cohorts of 0-4, 5-9, 10-14 and 15-19
is roughly equal, whereas the
numbers for older groups become
progressively smaller. This means
that the country’s younger age
groups have stopped growing in
numbers now and are likely to
shrink slightly soon. This,
however, does not mean that
India’s population will also start
shrinking soon—far from it. On the
other hand, China’s largest cohort
is in its late 40s, although it is
more gender balanced than its
younger cohorts, suggesting that
sex-selective abortions are likely to
have taken off in the last few
decades.
3 What does this have to do
with economic growth?
If we take the 25-65 age group, India
currently has around 650 million people
and China 830 million. By 2040, India is
likely to reach 900 million, whereas
China will have around 730 million. In
other words, India will go from having
180 million less working-age people than
China today to about 170 million more—a
net gain of a third of a billion in 20 years.
5 What’s the implication
of this for India?
The Indian state has to invest
more, and efficiently, in human
capital and infrastructure. For the
former, investments in health and
sanitation have to be sustained and
more PPP models such as
vouchers and charter schools in
basic education have to be
explored so that tax outlays result
in higher outcomes. For the latter,
a bigger push for affordable rental
housing in cities has to be
considered, along with more
investments in rail connectivity.
Harsh Gupta is chief investment
officer of Ashika Group.
Amazon’s celebrity voice featuring
Samuel Jackson will cost $0.99.
the investment the firm is putting into
voice-controlled computing.
Amazon’s celebrity voice feature will
cost $0.99, senior vice-president David
VOL. 13 NO.
EURO GOLD OIL
₹37,622 $62.30
₹0.20 ₹384 $0.09
QUICK EDIT
An IIT
lifeline
Students struggling academi-
cally in the main engineering
course of the Indian Institutes
of Technology (IITs) may be in
for relief. According to a news
report, IITs may let weaker stu-
dents opt out of the four-year
B.Tech programme and leave
in just three years with a BSc
degree in engineering. This is a
proposal on the agenda of a
meeting of the IIT Council on
Friday. If it is approved, stu-
China dents will be able to switch after
the second semester, provided
they meet certain standards.
A significant number of IIT
dropouts every year is at the
heart of the issue. The lifeline of
an easier course will help
soothe the anxieties of students
and parents alike. It’s better
that they get a degree of some
sort, rather than nothing at all.
Source: CIA There are concerns, however,
that this may dilute the IIT
brand; that degrees bearing the
name will no longer command
the same premium in the job
market as they once did. But
getting into an IIT is tough, and
midway dropouts ought to get
some credit for making that cut.
Also, if top IIT performers keep
making waves across the world,
the brand should retain its
equity. This is about the lives of
students, and that should be the
top consideration.
MINT METRIC
by Bibek Debroy
A fifteen km auto ride
Left a Bengaluru techie petrified.
On the Kartaj to Yervada trip
The driver simply let it rip,
The `4,300 fare a neat aside.
QUOTE OF THE DAY
It happened under my watch. I
get all the responsibility,
because it happened under my
watch.
MOHAMMED BIN
SALMAN
SAUDI ARABIA’S CROWN
PRINCE ON JOURNALIST
JAMAL KHASHOGGI’S
MURDER
REUTERS
Limp said at an event in Seattle. Jack-
son’s is the only celebrity voice Amazon
has disclosed so far.
Since Amazon announced its first
Echo speaker in 2014, shoppers have
purchased more than 100 million devi-
ces that come with Alexa.
Yet customers have been slow to
adopt the growing range of tasks that
Alexa can perform, often sticking to
basic hands-free functions.
That may have underscored Ama-
zon’s calculus for courting celebrities to
encourage users to turn to Alexa for a
wider range of interactions. REUTERS
 FLIP SIDE

Bollywood hits the mark

with women and sports
Taapsee Pannu (left) and Bhumi Pednekar in a still from ‘Saand Ki Aankh’, in which they play real-life sharpshooters.

Lata Jha ment, which is co-producing Saand Ki Aankh, said it is

lata.j@livemint.com important to notice that there are a lot of such inspiring peo-
NEW DELHI ple in our country and their journeys are worth taking to the
millions of people out there through the medium of cinema.

B
ollywood’s love for sports biopics has long been evi- “They are people who have gone through hardships, but
dent, but the Hindi film industry now seems to be still made a difference to the society, and emerged victori-
turning to the specific genre of women and sports ous. Chandro and Prakashi (the real-life sharpshooters), in
films to drive theatrical audiences, as real slice-of-life stories Saand Ki Aankh, are two such women, who have made our
emerge and female-led cinema finds more favour at the box country so proud at an age when no one would expect them
office. to,” Chopra said.
This Diwali, Bhumi Pednekar and Taapsee Pannu will play Sports biopics have always been a popular genre in the
60-year old real-life sharpshooters in Saand Ki Aankh. The West with films including Hugh Hudson’s Chariots Of Fire
biographical film directed by Tushar Hiranandani is based (1981) on the 1924 Olympics, Martin Scorsese’s Raging Bull
on the lives of Chandro and Prakashi Tomar, sisters-in-law (1980) on boxer Jake LaMotta, and Will Smith-starrer Ali
from Uttar Pradesh, who are recognised as one of the oldest (2001) on the life of Muhammad Ali.
in the field. The recent success of Bollywood sports biopics, starting
Parineeti Chopra is prepping to play badminton player with Paan Singh Tomar (2012), Bhaag Milkha Bhaag (2013),
Saina Nehwal in a biopic titled Saina, directed by Amol Mary Kom (2014), Dangal (2016), and M.S Dhoni: The Untold
Gupte and slated for a 2020 release. Pannu has already Story (2016), has paved the way for a lot of these new female
announced a film, Rashmi Rocket, on a fictional Gujarat- sports films.
based athlete to be produced by Ronnie Screwvala and Films on male sportspersons, too, have grabbed eyeballs,
directed by Akarsh Khurana, who had earlier helmed Dul- such as Kabir Khan’s ‘83, which tells the story of Kapil Dev’s
quer Salmaan-starrer Karwaan. There are 1983 World Cup win, with Ranveer Singh
also reports of biopics on badminton The success of in the lead. For the audiences, the sports
player P.V. Sindhu and cricketer Mithali biopic offers the charm of watching stories
Raj being in the works. sports biopics has of human triumph, besides witnessing
As megastars such as Shah Rukh Khan, paved the way for movie stars assume the roles of known
Salman Khan and Aamir Khan fail to grab
the kind of eyeballs they used to at the box several women-led sports personalities, pushing themselves
out of traditional comfort zones and seek-
office, a new generation of actors has sports films ing critical appreciation, said industry
invested in slice-of-life stories that reso- experts.
nate with audiences because they see those characters ema- It is also important to note the increasing box office viabil-
nating from their own lives. ity of female-led films. The genre has always had torchbear-
Of late, several films with major stars in the lead have ers such as Hema Malini, Rekha and Sridevi since the 1970s
failed to create ripples. The list of flops includes Karan when they carried on an industry parallel to male superstars
Johar’s period drama Kalank (with box office collections of such as Amitabh Bachchan. They were followed by Madhuri
₹80.03 crore), Yash Raj Films’ action adventure Thugs Of Dixit and Meenakshi Seshadri in the late 1980s and 1990s,
Hindostan (₹138.34 crore), Shah Rukh Khan-starrer Zero while more names such as Vidya Balan, Deepika Padukone,
(₹88.74 crore), and Salman Khan’s Tubelight (₹114.57 crore), Kangana Ranaut, and Alia Bhatt have made the list richer in
which was directed by Kabir Khan. These have been accom- recent years. Bhatt’s Raazi netted ₹122.39 crore last year,
panied by sleeper hits such as Ayushmann Khurrana-star- while Ranaut’s Manikarnika: The Queen Of Jhansi notched
rers Dream Girl (₹101.62 crore) and Badhaai Ho (₹134.46 up ₹90.81 crore earlier this year. Other projects led by
crore), as well as director Nitesh Tiwari’s comedy drama women such as Neerja (₹71.76 crore), Lipstick Under My
Chhichhore (₹120.28 crore). Burkha (₹16.52 crore) and Veere Di Wedding (₹80.27 crore)
“Real-life stories have really taken off in the last few years have also been success stories.
and some of them have even been received well,” said “Women are no longer showpieces in films. Perhaps, this
Akarsh Khurana. The director said Rashmi Rocket is a human also has to do with the rising contribution of women as audi-
drama based on a fictional character from the Kutch region ence members over the past two decades,” said Atul Mohan,
and her search for an identity. editor of trade magazine Complete Cinema. “A lot more
“There has also definitely been a rise in the number of sto- women are going to cinema theatres now and, unlike earlier,
ries on achievers, be it M.S Dhoni: The Untold Story, or Mis- they are not dependent on their fathers or husbands to take
sion Mangal,” he added. them and can venture out on their own. These stories tend
Sameer Chopra, head of marketing, Reliance Entertain- to inspire them,” Mohan added.

AFTER-HOURS WITH THE BOSS

WHO Anshul Jain
Country head and managing director—India, Cushman & Wakefield
Anshul Jain has over two decades of experience in real estate consultancy in South-East
Asia (India, Singapore and Indonesia) and Europe (UK, Central and Eastern Europe). At
present, he is responsible for driving growth and transformation at Cushman &
Wakefield, a real estate consultant firm, in India. After a brief stint at Space Matrix
Design Consultants in Gurugram, Jain was heading DTZ Ltd, which was acquired by
Cushman & Wakefield in 2015. Here’s how the 47-year-old executive spends time outside
his Gurugram office:

EAT LOUNGE
I love shopping I prefer
for exotic reading
ingredients historical
and then fiction. The
experimenting Conqueror
with them—it’s series on
like meditation for Genghis
me. I can whip up a Khan and
decent Mexican, Italian and even Oriental dish. The Peacock Throne on Mughal
history were particularly exciting. I
PLAY love watching romantic films and
Tennis has been my favourite sport growing up. nothing can beat the wit and
Of late, I have taken a liking to spraying balls on romance of Hugh Grant and Julia
the golf course, too. I am also into rafting—it Roberts in Notting Hill.
gives me a thrill that can’t be explained in words. —BIDYA SAPAM/MINT

PEANUTS by Charles M. Schulz

 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 13 NO. 232 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR) 22 PAGES

A MINT SPECIAL
E-COMMERCE AND THE
NEXT SET OF BUYERS
‘The Future Of’ series takes a long, hard look at
what present-day disruption will mean for the
way we work, play, invest and shop, bringing to
the fore insights from thought leaders. Today,
the series takes a look at how the past decade will
decide the next set of buyers in the world of
FRIDAY, SEPTEMBER 27, 2019 e-commerce. Page 12
LIVEMINT.COM

FM gets private lenders PMC withdrawal cap DON’T MISS

raised to ₹10,000 in
on board in growth push relief for depositors
Gopika Gopakumar & ment, the change, made in the
Private banks will help enhance credit disbursal during the festive season Shayan Ghosh interest of depositors, follows
a preliminary assessment of
m MINT GRAPHITI MUMBAI the bank’s latest depositor and
Shreya Nandi liquidity profile as furnished
TUNING INTO FM Essel Group in talks with Adani

T
shreya.n@livemint.com he Reserve Bank of India by the administrator.
NEW DELHI (RBI) on Thursday “Accordingly, vide modified Green Energy to sell solar assets
Growth is likely to pick up in October-March as demand is expected to improve, allowed depositors of directive dated 26 September, Essel Group is in talks with Adani Green

F
finance minister Nirmala Sitharaman said after a meeting with private lenders. Energy to sell its remaining solar portfolio.
inance minister Nir- Punjab and Maharashtra 2019, it has been decided to
mala Sitharaman Co-operative Bank Ltd (PMC) allow the depositors to with- The firm is rushing to complete its solar
End in sight for Truck sales Tax cut to spur Apollo power projects of 480MW before putting
enlisted the support to withdraw up to ₹10,000 draw a sum not exceeding
slowdown? seen reviving investments Hospitals them up for sale. See Page 3
of private banks and from their accounts, up from ₹10,000 of the total balance mulls
non-bank lenders to Sitharaman indicated Private sector banks, Uday Kotak, among ₹1,000 fixed two days earlier. held in every savings bank passing on
that the slowdown financial institutions those who attended
boost credit disbursal and The new limit account or cur- corporate
may have bottomed tell the minister that the meeting, said tax cuts to Blackstone will soon take full
claimed consumer demand out and the festive the slump in private investment will allow 60% of The new limit will rent account or
will pick up during the festive the bank’s depos- investors control of IBREL office assets
season will help commercial vehicle will respond to the allow 60% of the any other deposit
season. boost the economy. sales is "cyclical". cut in corporate tax. itors to withdraw bank’s depositors account,” it said, bit.ly/2lRTArW Indiabulls Real Estate Ltd said it has sold its
Citing bankers, Sitharaman all of their adding that other remaining stake in some of its office assets
to withdraw all to Blackstone for ₹2,717 crore, paving the
said that lenders and financial money, the cen- terms and condi-
institutions are not facing a
POSITIVE OUTLOOK
tral bank said in a
of their money, tions of its direct- way for the investor to take full control of its
liquidity crisis. It was a very tonic-like meeting where I heard statement, in a according to ive remain
commercial office portfolio. See Page 8
“I have not heard liquidity as good things, positive things. The message I got is relief for custom- the central bank unchanged.
a problem (crisis or shortage) that consumption is happening ers caught una- RBI said its ear-
from anybody. That is one NIRMALA SITHARAMAN, finance minister wares by the sud- lier directions SAT dismisses ITC’s appeal over
thing I would like to take as a den curbs on the multistate were necessitated by major sale of Leela hotels to Brookfield
message. If anything, more cooperative bank. RBI also financial irregularities, failure The SAT on Thursday dismissed an appeal by
liquidity is reaching them, investments. “In the coming said it has superseded PMC of internal control and systems ITC challenging the sale of Hotel
they see demand waiting and half year, things will have to
they won’t mind further look up and pep up every sec-
extending the facility,” Sithar- tor, even in (those) sectors
RBI panel seeks more Bank’s board and appointed an of the bank and wrong report-
administrator. ing or under-reporting of its
“The above relaxation has exposures under various off-
Leelaventure’s assets to Brookfield, bringing
the Canadian firm a step closer to acquiring
four luxury Leela hotels. See Page 8
aman said on Thursday after where there may be some
meeting top stress,” she told flexibility on liquidity been granted with a view to site surveillance reports to RBI
reducing the hardship of that came to its notice
EC defers Karnataka bypolls till
executives of pri- I have not heard reporters. depositors. The Reserve Bank recently.
vate banks and Finance secre- Shayan Ghosh system liquidity is required of India is closely monitoring “Therefore, the board of the SC decides fate of 17 rebel MLAs
that liquidity is
non-banking a problem tary Rajiv Kumar shayan.g@livemint.com to be in a small deficit, the position and shall continue bank has also been superseded The Election Commission on Thursday
financial compa- said banks, along MUMBAI which could be an impedi- to take further steps as are nec- under sub sections (1) and (2) of deferred bypolls to 15 assembly seats in
from anybody, Karnataka till the time the fate of 17
nies (NBFCs). with NBFCs, ment when surplus liquid- essary to safeguard the interest Section 36 AAA read with Sec-
Sitharaman disqualified legislators is decided by the

A
The govern- mortgage lenders panel set up by the ity is essential. of the depositors of the bank,” tion 56 of the Banking Regula-
ment has been said after and microfinance Reserve Bank of The panel has also asked said RBI.
Supreme Court. See Page 18
prodding banks meeting bankers institutions, will India (RBI) has rec- RBI to institutionalize According to the RBI state- TURN TO PAGE 10
to increase credit hold outreach ommended that the central some of the ad hoc liquidity
disbursal ahead programmes in bank’s liquidity framework infusion measures the cen-
of the festive season, seeking 400 districts across the coun- be made flexible enough to tral bank has adopted over
to improve consumer demand try during the festive season, adapt to conditions when the past few months.
after announcing a sharp cut in with a view to enhance credit the system requires liquid- This recommendation
corporate tax rate that is disbursal. ity to be in surplus mode.
expected to boost profitability Under the current setup, TURN TO PAGE 8
of companies and spur private TURN TO PAGE 6

FA R M T R U T H S LEARNING 4.0 GUEST VIEW

HIMANSHU KAPIL VISWANATHAN KALYAN KRISHNAMURTHY
See Page 14 See Page 14 See Page 12

IITs may get

autonomy on
lines of IIMs
Prashant K. Nanda
prashant.n@livemint.com
NEW DELHI

T
he Centre is likely to
grant administrative and
financial autonomy to
the Indian Institutes of Tech-
nology (IITs), along the lines of
what was given to the Indian
Institutes of Management
(IIMs) last year.
The human resource devel-
opment (HRD) ministry will
discuss a new model of student
and institutional financing
with representatives of all the
23 IITs at the council meeting
in New Delhi on Friday. IITs
will also be allowed to choose
their board of governors,
including the chairman, with
little interference from the
government, two government
officials said on condition of
anonymity.
“The government believes
that top institutions need to
enjoy more autonomy. After
IIMs’ autonomy, this is now on
the table and will be discussed
in the council meeting,” said
the first of the two officials.
The second official said
some of the older IITs had
recently spoken to the minis-

TURN TO PAGE 16

NOTE TO READERS
The Media Marketing Initiative
on Page 8 is the equivalent of a
paid-for advertisement.
The content on Page 9 has
been produced by Mint Brand
Cell in collaboration with
Malaysia Airlines as part of our
customer connect initiative. The
news and editorial teams of
Mint had no role in its creation.
02 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI
PLAIN
FACTS

WHAT IF LAVER CUP WAS RYDER CUP?

Europe punches above its weight in golf ’s Ryder Cup. Chances are, it would have done the same in an exalted version of tennis’ Laver Cup too
howindialives.com m MINT GRAPHITI
kept its winning record. It was Chart 2 Chart 3
Chart 1
feedback@livemint.com expected to, given that the Even when Europe had the depth advantage, On the tour, when it counted, the
average ranking of its six play- The balance of power in men's tennis it didn't have a rank advantage. Until now top 20 players of Europe did better

A
n experiment ers that weekend was six and has shifted to Europe Median rank of top 20 players (lower rank implies better players) The winning percentage of players ranked in the top 20
arises from a “what that of Team World was 57. Number of male players ranked in the top 20 at any time that year from Europe and the world when they faced each other in
if” question. What would it have looked like Ranking (Inverse scale) quarter-finals, semi-finals and finals of all tournaments
Sometimes, they in the past four or five decades? 25 4
Europe Europe World (in %)
raise a further With the Laver Cup in mind, Europe
20 6
“what if” question, as the world we broke down a dataset of 8
of men’s tennis did last week- men’s ranking since 1973. 19 8
end. In a made-for-TV event, To trace those rankings is a 15 36 64
47 53 55 45
which slotted in somewhere window to the shifts in the bal- 10 11
between exhibition and com- ance of power in men’s tennis: 10
petition, 12 of the best men’s The Team World in the 1970s 12
players came together for the to the mid-1980s, Europe till 8
5 14
third edition of the Laver the early-1990s, back to the World World 48 52 47 53
Cup—a team-tennis competi- world for another decade, and 0 16
tion between Europe and Rest then Europe all the way since. 2018
1973 2018 1973
of the World. The Laver Cup format
It flew in the face of every- requires each team to field six
thing that men’s tennis has players. Three picks are based
embodied, espe- on rankings and 1970 1990 2010
cially in recent The Laver Cup, the other three are
decades. Tennis where teams the captain’s pre-
is, principally, an came together rogative. If every-
individual sport. under the banner one showed a will- 1980 2000
The sense of a
of nations, flew in ingness to play a
team, of coming team event—and Chart 4
the face of what this is a big “if” in
together under Even in Davis Cup, European players do better in
the banner of tennis embodied men’s tennis— head-to-head against the world
nations, is weak. these players, or at
Still, the mild suc- least the core, Winning percentage of
20 players from Europe
1990 2000 2010
cess of the Laver Cup last week would likely come from the and the world when
raised the delicious, though top-20 ranked players. they squared up in
largely hypothetical, question: In 2018, there were 19 Euro- Davis Cup (in %)
What if the Laver Cup was to peans who were ranked inside 43 57 47 53 43 57
tennis what the Ryder Cup is to the top 20 in men’s singles at World
golf? The Ryder Cup, a biennial some point during the year. By
competition between male comparison, there were only Europe
Source: tennisabstract.com dataset sourced from Kaggle
golfers from Europe and the US eight players from other coun-
since 1927, is one of the world’s tries. But there was a time when AHMED RAZA KHAN/MINT

premier sporting events. It that wasn’t the case. Each shift has had torch- and Andy Murray happened to ranked in the top 20 have when it mattered more. Bar- Todd Martin) was winning Davis Cup editions.
takes what is principally also an Between 1973 and 1990, on bearers, behind whom came a Europe. The number of players mostly had a median ranking ring the 1990s, the set of Euro- more against the Europeans on Later this year, the Davis Cup
individual sport, but weaves a an annual basis, Europe always tail. Europe’s resurgence came in the top 20 is one thing. Their that was better than that of the pean players in the top 20 had a tour, they were struggling to will move to a new format that
team narrative that is compel- had fewer players in the top 20 in the mid-eighties when Boris ranking also makes a differ- European set. That changed slightly better winning record replicate the same in the Davis is more condensed to increase
ling for its construct, commit- than the rest of the world (See Becker and Stefan Edberg ence. firmly only with Federer, than the World set in matches Cup, the main team tourna- the interest of top players. By
ment and history. One of those chart 1). broke out. Soon after came the Are they mostly bringing the Nadal, Djokovic and Murray on the tour when they squared ment in men’s tennis. In all the evidence of past data,
narratives revolves around the In the 1970s, first it was the ascendancy of Americans tail end, or do they have a core (See chart 2). up in quarter-finals, semi-fi- three decades for which granu- whether it is a revamped Davis
idea of a team: In nine of the last Australians (John Newcombe, Andre Agassi, Pete Sampras who are making it count at the Even with the count and nals, or finals (See chart 3). lar head-to-head data is availa- Cup or a new Laver Cup,
11 editions, Europe has had a Ken Rosewall, Rod Laver) and and Jim Courier, and the ensu- very top? For most years before ranking disadvantage, what top Even in the 1990s, when the ble, Europe has held sway over Europe would still have a hold.
lower average ranking than the then the Americans (Jimmy ing decade was one of small 2011, even during Europe’s European players have consist- rest of the world (principally, the rest of the world (See chart howindialives.com is a data-
US and yet won eight times. Connors, Arthur Ashe, John margins. Then, Roger Federer, resurgence in the eighties, the ently done is play better against Americans such as Sampras, 4). Since 1973, a European base and search engine for public
At the Laver Cup, Europe McEnroe, Vitas Gerulaitis). Rafael Nadal, Novak Djokovic, set of World players who were their American counterparts Agassi, Michael Chang, and country has won 30 of the 46 data

m MARKETS DASHBOARD How the JEE boosts company performance

EQUITY FOREX Sneha Alexander
MINT
performance and why they are
MARKETS % change vs MARKETS % change vs
sneha.a@livemint.com the most sought-after direct-
Latest Last A A Last A A MUMBAI ors in corporate circles.
(index week month year week month year Their analysis is based on a

E
Index level) average ago ago Currency Latest average ago ago very year, millions of sample of 8,527 observations
Indian youngsters using education data of board
INDIAN STOCK EMERGING MARKET attempt the highly com- of directors from the National
MARKETS CURRENCIES vs the $ petitive Joint Entrance Exami- Stock Exchange and firm
nation (JEE), but very few financial data from the Centre
SENSEX 38,990 ▲ +5.8 ▲ +4.2 ▲ +7.1 Indian Rupee (per $) 70.88 ▲ -0.7 ▲ -1.2 ▲ -2.4
manage to pass. for Monitoring Indian Econ-
NIFTY 50 11,571 ▲ +5.9 ▲ +4.8 ▲ +5.2 Chinese Yuan 7.13 ▼ +0.6 ▲ -0.4 ▼ +3.8 The ones who do pass earn omy between 2006-15.
BANK NIFTY 30,003 ▲ +8.8 ▲ +7.9 ▲ +19.2 Brazilian Real 4.15 ▼ +0.8 ▲ -0.2 ▼ +2.4 more than an entry Around 22% of
into India’s elite m the directors in the Board directors who pass the IIT-JEE tend to be more confident,
Russian Ruble 64.35 ▼ +0.4 ▲ -3.2 ▲ -2.1
GLOBAL STOCK engineering insti- sample were JEE which translates to better firm performance, finds a new study.
INDICES Indonesian Rupiah 14,165 ▼ +0.7 ▲ -0.6 ▲ -5.0 tutes. A new study SNAP FACT directors, of which
DOW JONES (US) 26,919 ▼ -0.6 ▲ +3.5 ▲ +1.7
shows that corpo- 29% were IIT gradu- related experience, such as for the rest of their lives. Thus,
OTHER MAJOR
CURRENCY PAIRS
rate directors, who passed the ates. The authors find that previous stints as a board the authors stress on the
S&P 500 (US) 2,976 ▼ -09 ▲ +3.0 ▲ +2.1 JEE (JEE directors), derive firms with JEE, directors tend director or having an MBA importance of confidence in
NIKKEI (Japan) 22,048 ▲ +0.2 ▲ +8.0 ▼ -7.9 Euro ($/€) 1.09 ▼ +0.8 ▼ -1.2 ▼ -6.4 immense confidence out of to perform better than their degree. succeeding as a corporate
SHANGHAI 2,929 ▼ -2.4 ▲ +1.4 ▲ +4.6 Japanese Yen their teenage achievement counterparts. In addition, According to the authors, board member.
107.6 ▲ +0.4 ▼ +1.4 ▲ -4.8
COMPOSITE (China) (¥/$) and this contributes to better firms with a higher proportion the reason that JEE directors Also read: The Joint
HANG SENG (HK) 26,042 ▼ -2.5 ▲ +1.5 ▼ -5.9 British Pound
firm performance. of JEE directors tend to outperform non-JEE directors Entrance Exam, overconfident
1.23 ▼ +1.2 ▲ +0.9 ▼ -6.0 Sugato Chakravarty and appoint new JEE directors on is their “overconfidence” or directors and firm performance
($/£)
IBOVESPA (Brazil) 1,04,644 ▲ +0.2 ▲ +6.7 ▲ +32.6 Prasad Hegde, in a new paper the board. strong belief in their abilities. (bit.ly/2liQNaR)
FTSE/JSE TOP 40 49,290 ▼ -2.7 ▲ +2.1 ▼ -1.9 THE DOLLAR INDEX published in the Journal of Passing the JEE seems to be The confidence derived from Snap Fact features new and
(South Africa) Corporate Finance, examine more important for firm per- their success and recognition interesting reads from the
JCI (Indonesia) 6,230 ▼ -0.2 ▼ -0.6 ▲ +5.5 Dollar index 98.9 ▲ +0.5 ▲ +0.8 ▲ +4.7 how JEE directors boost firm formance than even business- at an early stage of life endures world of research.
Red denotes depreciation in the mentioned currency, green denotes appreciation

FIXED INCOME COMMODITIES

MARKETS Absolute change in yields (bps) vs MARKETS % change vs

Last A A
Latest Last A A
m NEWS IN NUMBERS CORRECTIONS AND
(index week month year CLARIFICATIONS
Bond yield or short-term Latest week month year GETTYIMAGES
Commodity level) average ago ago
interest rate (%) average ago ago 3,667 12 In thewelcomes
Mint 25 Septembercomments,
story,
What is it? The number of people who What is it? The suggestions
“Panicked depositors
or complaints
swamp
MAJOR COMMODITY died of measles in the Democratic number of aboutBank
PMC errors.
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INDIAN FIXED
PRICES Maruti Patik, a 44-year-old
INCOME MARKET Republic of Congo so far this year. matches Bengal
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Brent crude ($/barrel) 61.7 ▼ -5.3 ▼ +2.9 ▼ -24.5 Why is it important? Measles has claimed Warriors has won
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WTI ($/barrel) 55.8 ▼ -6.0 ▼ +0.9 ▼ -22.8
India 10-year AAA-corp 7.90 ▼ +5 ▼ +24 ▲ -99 than Ebola has this year, even though it has League 2019, as full nameshould
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Copper (3-month future) 5,787 ▼ -0.5 ▲ +1.8 ▼ -7.8 garnered less global attention. The the season’s tenth feedback@livemint.com.
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1-month Mibor 5.96 ▼ +5 ▼ +13 ▲ -130 It is our policy
Readers to promptly
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MCX gold spot Health Organization (WHO) to vaccinate in Jaipur.
(/10 grams) 37,622 ▲ +0.0 ▼ -2.6 ▲ +23.0 respond to to
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GLOBAL SHORT-TERM days, thereby bringing the total number of legs to go, Bengal Warriors is now tied with
INTEREST RATES response
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COMMODITY INDICES those vaccinated to 4.1 mn, as per WHO. Dabang Delhi at the top of the table. Mint’s journalistic integrity may
feedback@livemint.com.
3-month $ Libor 2.11 ▲ -4 ▲ -2 ▲ -27 Tell me more: Measles has infected nearly Tell me more: Among individual players, write
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respond to email to
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3-month US treasury yield 1.84 ▲ -10 ▲ -14 ▲ -35 Reuters/CoreCommodity asktheeditor@livemint.com
Readers dissatisfied with the
CRB Index
Congo has to simultaneously deal with the Pardeep Narwal (Patna Pirates) and
An increase in yields reflects a fall in bond prices. Indian data is as of market response or concerned about
closure on 26 September. Global data is as of 7.30pm, 26 September.
spread of the Ebola virus, which has killed Naveen Kumar (Dabang Delhi) occupy the Mint’s
Mint’s journalistic
journalistic Code may
integrity of
S&P GSCI 412 ▼ -2.4 ▲ +3.4 ▼ -14.6 more than 2,000 people since August 2018. top spots. Conduct
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the editor
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email to at
www.livemint.com
asktheeditor@livemint.com
Source: Bloomberg
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 DEALS FRIDAY, 27 SEPTEMBER 2019
NEW DELHI 03

DEALS ROUND-UP
DVARA KGFS RAISES ₹70 CR FROM
Essel Group in talks
NORDIC MICROFINANCE INITIATIVE
Dvara KGFS, a non-banking financier that lends to low-
income households in remote rural areas, has raised ₹70
crore in its Series E funding
round from Nordic
with Adani to sell
Microfinance Initiative, a
Norwegian and Danish
government-owned public-
private partnership that
supports microlenders in
solar energy assets
Asia and Africa. Dvara, which
has disbursed loans to over 1 Vivriti founders Gaurav Kumar (Left) and Vineet Sukumar.
million customers across Firm rushes to finish construction of projects to be put up for sale
Tamil Nadu, Uttarakhand,
Karnataka, Chhattisgarh and
Odisha, will use the new Dvara KGFS chief Tanya Thomas
Vivriti Capital to raise
capital to expand its
operations and pursue
executive Joby C.O.

inorganic growth opportunities, besides investing in

tanya.t@livemint.com
MUMBAI
₹500 crore debt fund
T
scaling up its technology infrastructure to support he Essel Group, which
innovation and accessibility of its products and services. needs to sell a host of assets
“The investment by NMI in Dvara KGFS is a strong to stave off loan defaults, is M. Sriram expected to increase from
affirmation of the unique financial inclusion model in talks with the Adani sriram.m@livemint.com about ₹19,000 crore so far to
followed by Dvara KGFS, targeting the customers in the group to sell its remaining MUMBAI about ₹29,000 crore by 31
remote rural villages in India. Our business model solar energy portfolio, said two people March 2020, he said.

F
promotes a wealth management approach and multi- close to the development. inancial services firm The new debt fund will have
product delivery for customers both retail and Essel is rushing to complete its Rivigo Vivriti Capital, which a base size of ₹250 crore with
becomes
enterprises in the local geography,” said Joby C.O., chief unfinished solar power projects of 480 eighth
runs an online market- an equal amount as a green-
executive officer, Dvara KGFS. In April, the Chennai- megawatts (MW) to sell them to Adani unicorn place for mid-market corpo- shoe option, which will let the
based lender had raised ₹97 crore from Stakeboat Green Energy Ltd, the group’s renew- startup of rates to raise debt, plans to fund raise more capital in case
Capital, Leapfrog Investments, Accion and Dvara Trust. able energy arm, the people said, 2019, valued raise ₹500 crore for a debt of robust investor demand.
at $1.05 bn
requesting anonymity. In August, Essel Infraprojects Ltd sold its operating portfolio of 205MW to fund that will invest in compa- The investors in the fund
MEDICAL DEVICE MAKER AGATSA In August, Essel Infraprojects Ltd, Adani Green Energy at an enterprise value of ₹1,300 crore PRADEEP GAUR/ MINT bit.ly/2lPlxQQ nies in its marketplace, said a are expected to be large insur-
RAISES $1 MILLION FROM IAN, TDB wholly owned by Subhash Chandra’s top executive of the firm. ance companies, high net-
Medical device maker Agatsa has raised $1 million from debt-heavy Essel group, sold its oper- the person added. Caisse de dépôt et placement du Qué- Along with the marketplace worth individuals (HNIs), and
Indian Angel Network (IAN) and the Technology ating portfolio of 205MW to Adani A spokesperson for the Essel Group bec (CDPQ) pulled out of a deal to buy model, where large-cap inves- bank treasuries, Sukumar said.
Development Board (TDB)—a department of science Green Energy at an enterprise value of said it is in “steady dialogue with mul- three of Essel’s road projects. Essel tors such as State Bank of India “While the LP (limited part-
and technology fund that receives grants from the ₹1,300 crore. Prior to the sale, the tiple prospective partners for the later entered into talks with National (SBI), ICICI Bank and Temple- ners) base will mostly be
government of India’s cess Essel group had a consolidated solar divestment of its non-media assets.” Investment and Infrastructure Fund ton Mutual Fund lend to mid- domestic, we are setting up a
collections. The startup is power portfolio of 685MW, which it The spokesperson however, declined, and Roadis for a similar transaction. market corporates, Vivriti also structure to raise money from
looking to create affordable had won under the National Solar Mis- to disclose additional details, citing Acquisitions in the solar energy sec- lends from its own balance overseas, and are setting up an
and mobile healthcare sion and state government auctions. confidentiality pacts. A spokesperson tor have slowed over the last two years sheet as a part of offshore man-
devices that can help in the The average power purchase agree- for the Adani group did not respond to because of continued delayed pay- these transac- The new debt ager,” he added.
early diagnosis and ment for the assets is ₹5.50 per kWh, emailed queries. ments by state utilities, affecting the tions to showcase fund will have a Vivriti expects
management of lifestyle fairly high by current standards of Last October, the Essel group had a margins of several renewable energy its deep involve- base size of to close the fun-
diseases. below ₹3 per kWh. companies, and ment in the busi- ₹250 crore with draise by the end
It will use the funds to scale Now, the remaining OFFLOADING ASSETS TO CLEAR DEBT Andhra Pradesh forc- ness.
an equal amount of this fiscal. The
up its operations and market 480MW in its portfolio ing some companies to “There will firm has already
its flagship electrocardiogram is on the block as well, ESSEL Infra has also ESSEL group is ESSEL Infra, wholly renegotiate their always be differ- as a greenshoe received commit-
(ECG) devices— locally as despite most of it still placed several of its struggling to pay back owned by Subhash power purchase agree- ent sources of option ments worth ₹140
road assets on the about ₹13,000 cr in debt Chandra’s Essel
Agasta founders well as around the globe. being under construc- block, but is yet that the promoters owe group, owes another ments (PPAs) to lower capital, who want crore, and plans
Rahul and Neha Rastogi. “Going forward, we plan to tion. to finalize a deal to a clutch of creditors ₹10,000 cr tariffs. A recent report to invest in differ- to start investing
create a range of products, “Of the ₹1,300 crore by India Ratings ent ways, directly, on our bal- from the fund from next
including wearables, that help in the timely diagnosis that Essel earned in the downgraded its out- ance sheet, and as a fund. We month onwards, Sukumar
and management of non-communicable diseases. We first deal, the equity portion was similar pact with Sekura Energy Ltd, look to “stable” from “positive” for the are raising this alternative said. He said the fund will lend
will leverage the capital infusion to bolster our platform, roughly ₹200 crore,” said the first per- backed by Edelweiss Infrastructure solar sector. It said there were 25% investment fund (AIF) so that to mid-size corporates and
build a robust network of doctors, and find innovative son cited above. “Essel is investing this Yield Plus (EIYP) fund. Sekura agreed more downgrades than upgrades we have a structure that can financial institutions with
ways to further reduce the response time,” said the ₹200 crore to make its remaining to buy two operating and two under- among renewable projects in its rat- absorb every type of money. annual revenues of around
firm’s founder Rahul Rastogi. Founded in 2014 by portfolio operational. The Adani construction power transmission ings portfolio from January-August The AIF becomes another par- ₹50 crore.
Rastogi and his wife Neha, Agatsa has recorded over group has tacitly agreed to buy the assets from Essel Infraprojects for 2019. The Essel group is struggling to ticipant in the marketplace,” It also plans to raise further
100,000 ECG readings so far and its devices are used by bulk of the remaining portfolio once roughly $800 million (₹6,000 crore). pay back about ₹13,000 crore in debt Vineet Sukumar, co-founder equity capital, and has started
more than 6,000 doctors. The Noida-based startup the plants start generating power.” While the operating projects were sold that the promoters owe to a clutch of and managing director Vivriti a formal process to raise ₹450
planning to introduce wearables that could detect 17 “Of the 480 MW, about half is 90% this year, the second tranche of the creditors, while Essel Infra owes Capital, said in an interview. crore from private equity
different diseases, including diabetes, epilepsy, obesity, complete while the remaining is 70% deal for the under-construction pro- another ₹10,000 crore. The promoter Vivriti’s own loan-book is funds, Sukumar said.
anxiety and neuropathy. complete,” the same person said. “The jects is still awaiting completion. group, led by Subhash Chandra, have about ₹1,000 crore, which it The two-year-old company
solar portfolio sale will take two more Essel Infra has also placed several of agreed with certain lenders to defer expects to grow to ₹2,500 has so far raised ₹300 crore in
SOLAR EPC FIRM GENSOL TO RAISE tranches to complete” and their valua- its road assets on the block, but has yet the payment date on certain non-con- crore by the end of this fiscal, equity from Creation Invest-
₹18 CRORE FROM SHARE SALE tion would be in the same range as the to finalize a deal. On 26 July, Mint vertible debentures to March 2020, Sukumar said. Disbursals from ments, a US-based impact
Gensol Engineering Ltd, part of the Ahmedabad-based first one, at about ₹6 crore per MW, reported that Canadian pension fund from 30 September. the marketplace are also investor.
Gensol group of companies that provide solar advisory
and EPC services, is hitting the public market next week
to raise ₹18 crore. Gensol is an advisory and operation
and maintenance service provider with a presence in 13
countries and 20GW of solar and wind energy projects.
The initial public offer will be
open from 30 September to 4
October. The proceeds of the
Policymakers must be careful while regulating tech markets, says CCI
fresh issue, in the price band
of ₹81-83 per share, will be Swaraj Singh Dhanjal penetration and greater digital more—this year. The other uni- nology-driven markets,” said form to connect buyers and
used to fund working capital swaraj.d@livemint.com maturity of internet users, it is corns created this year include Govil. sellers but eventually trans-
requirements, keep ready MUMBAI bound to grow faster. Icertis, a contract management Govil said e-commerce fol- form into suppliers on their
spares and increase According to a Google India software platform, grocery lows a growth-over-profit own platform. This dual role

A
manpower. lthough there are sev-
Over the last four years, eral concerns around
Gensol Engineering has technology markets,
reported over 200% they are at a nascent stage and
compound annual growth Gensol Engineering evolving, making it important
rate in net profit. Its clientele founder Anmol Jaggi. for policymakers and regula-
includes SoftBank, ReNew tors to make careful interven-
Power, Adani and SunEdison. The public issue is being tions, said Manish Mohan
advised by Pantomath Capital Advisors. “Gensol Govil, adviser and head of
controls about 5% of the market share in the renewable mergers and acquisitions at the
energy sector. We’re pricing the issue at 6 times our Competition Commission of
projected FY20 price-to-earnings ratio and 10 times our India (CCI).
FY19 PE ratio,” said Anmol Jaggi, founder, Gensol Speaking at the CII Mergers
Engineering. In the previous financial year, the Acquisitions and Restructuring
company reported revenue of ₹83.85 crore, operating Summit 2019 in Mumbai, Govil
profit of ₹10.75 crore and net profit of ₹6.5 crore. said India is a fast-growing
COMPILED BY RIDHIMA SAXENA AND TANYA THOMAS/MINT internet and e-commerce mar-
ket and with rising internet
and Boston Consulting Group startup BigBasket, e-com- model of business, where leads to conflict of interest,”
report in Febru- merce logistics showing profit is less important said Govil.
ary 2018, digital Digital consumer firm Delhivery, than increasing user base in These challenges call for the
consumer spend- spending in the software firm order to raise capital. right policy features to pre-
ing in the country country is Druva, fantasy “These markets offer deep serve the balance in the market
is expected to expected to more gaming startup discounts. However, these dis- and protect consumers and
more than double Dream11, IT counts erode the value of the smaller producers, said Govil.
than double to
to $100 billion by healthcare firm Manish Mohan Govil, adviser goods and services in the long “However, it needs to be kept
2020. $100 bn by 2020, CitiusTech and and head of M&A at CCI. run in the mind of the con- in mind, many new age markets
This boom has shows a report Ola Electric, the sumer,” he said. are nascent and evolving. Thus,
already created electric vehicle takes-all markets and the geo- He also pointed out that policymakers and regulators
several large arm spun off from graphic expansion of the mar- these markets also suffer from must play a careful role in
internet companies in India. ride-hailing startup Ola, itself ket across borders, have given other issues such as conflict of avoiding sub-optimal interven-
Mint reported on Thursday one of India’s earliest unicorns. rise to several concerns. interest, which could impact tions and ensure that these
that trucking logistics firm However, Govil said the “While efficiency is a posi- consumers and smaller retail- markets remain open,” said
Rivigo is the eighth Indian unique features of internet tive externality of network ers and producers that use Govil, adding that the CCI is
startup to become a unicorn— markets such as ‘network effect, monopoly has also these networks. taking a nuanced approach to
valued at a billion dollars or effect’, which creates winner- become a norm in these tech- “Most initially start as a plat- these issues.

Distressed asset acquisitions, consolidation behind large M&A transactions

Ridhima Saxena consulting firm said in its with about 70% of growth in sification, categorized as Teleservices in 2019 and contributed to about one-
ridhima.s@livemint.com report. Deal spree deals value led by distressed scope deals that are done to Telenor assets in 2018. fourth of the total non-dis-
MUMBAI Even the average deal size The volume and value of large deals have increased deals, owing to the corporate accelerate topline growth Also, UltraTech Cement’s tressed deals.
grew from $0.7 billion in between 2015 and 2018. insolvency resolution proc- through new and attractive acquisitions of Jaypee Examples of such deals

L
arge deals or those
worth more than $250
million each have seen a
sharp increase in value terms
since 2015, Bain & Co. said in
its India M&A Report 2019.
Between January 2015 to
April 2019, 60 large deals
worth $120 billion comprised
39% of the total 3,600 merg-
ers and acquisitions (M&A)
with an aggregate value of
more than $310 billion,
according to the report
issued on Thursday.
The value of large deals
doubled between 2015 and
2016 to $23 billion and then
doubled again over 2017 to
2018 to $56 billion, the global
2015 to more than $2.6 bil-
lion in 2017 and 2018.
The Bain report cited
examples such as Walmart’s
$16 billion acquisition of
Flipkart in 2018, the $13 bil-
lion acquisition of Essar Oil
by a Rosneft-led Russian con-
sortium in 2017, and Adani
Transmission’s $3 billion
acquisition of Reliance Infra-
structure’s integrated Mum-
bai power distribution busi-
ness in 2018 as some of the
largest deals that led to the
doubling of large deal values
in 2018.
In terms of sectors, indus-
trial goods, energy, and tele-
com and media comprised
Non-distressed deals Distressed deals Average deal size ($ bn) ess under the Insolvency and market segments or addition Cement in 2017 and Binani include, GlaxoSmithKline’s
Figures in brackets are the number of large deals Bankruptcy Code (IBC), of new capabilities. Cement in 2018 helped it sale of its India consumer
2016. This segment consolidate its healthcare portfolio to Hin-
2.6 As of 30 June, only 120 of contributed the The value of large position among dustan Unilever (announced
0.7 1.8 2.7 (21)
(11) (13) (9) the 2,162 cases under Insol- highest, at 40%, deals doubled cement compa- in 2018), and telecom compa-
vency and Bankruptcy Code to large deals between 2015 and nies. nies’ divestments of tower
23 were closed by resolution. volume from 18% 2016 to $23 billion This has led to assets to specialised tower
Similarly, of the ₹2.53 trillion in 2015.
and then doubled a 4 % t o 2 0 % companies.
claims admitted under the Of the total increase in mar- Last, it was inbound merg-
deal value, scope again over 2017 to ket share for the
23 24 33
IBC process, only 42.8% of ers and acquisitions, involv-
claims worth ₹1.08 trillion deals made for 2018 to $56 billion top five players ing foreign firms trying to
8 were recovered. 56% of large in the consoli- make an entry into the India
Still, between January deals between dating indus- market, which triggered
2015 2016 2017 2018 2015 and April 2019, there January 2015 and April 2019 tries. deal-making.
Source: Dealogic, Capital IQ, Bain Analysis
were seven large distressed with most consolidation hap- The third trend in mergers That comprised 20% of
asset acquisitions totalling pening in the telecom, and acquisitions was around total deals in 2018, compared
more than 60% of large deals Even as the first half of $23 billion. cement and steel industries. the sale of non-core assets to 9% in 2015 with examples
by volume and value, with 2019 saw lacklustre deal The other trend that domi- Some of the largest deals and subsequent reinvest- such as Walmart’s big bet on
energy and technology sec- activity, 2018 remained a nated Indian deal-making during the period include ment into core businesses in India with Flipkart and IHH’s
tors contributing the most. record year for deal-making was consolidation and diver- Airtel’s acquisition of Tata the last four years, which bid for Fortis Healthcare.
04 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI MARK TO MARKET

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

38,989.74 1.03 11,573.30 1.22 9,445.40 1.14 27,813.05 1.21 11,716.85 1.22 14,355.70 0.92 13,440.49 0.42
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

38,593.52 38,700.48 11,440.20 11,469.85 9,344.15 9,365.50 27,484.50 27,517.60 11,581.60 11,609.50 14,225.12 14,252.15 13,383.77 13,395.23
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

39,158.07 38,676.11 11,610.85 11,466.35 9,471.25 9,363.25 27,929.35 27,512.95 11,751.15 11,606.30 14,403.22 14,243.51 13,466.02 13,386.66

m SHORT TAKES
Painful memories
High onion prices won’t spoil the
central bank’s inflation dish yet
European stock traders fear a repeat of
the end of 2018 turmoil.
Stoxx Europe 600 Index’s market capitalization
(in $ trillion)
1.25
1.19
Harsha Jethmalani 4% and giving comfort to the economist at ICICI Securities Ltd, so
1.20 harsha.j@livemint.com Reserve Bank of India (RBI). CPI far in September, wholesale onion Bringing Retail (all India average ₹/kg)
(Left-hand scale)
Wholesale
(₹/quintal)
inched up to 3.2% in August from prices have increased by 89% from a tears 50 4000

O
nions are making 3.1% in July. year ago. Heavy rainfall 45 3600
1.15 2,934.4
Indian consumers and “If all-India retail average onion
“Onions have an overall weightage in key onion 40 3200
their wallets weep. prices stays at ₹35/kg for the rest of
of 1.7% in the food inflation basket. producing 35 2800
states has hit 35.2
1.10 China Heavy rainfall in FY20, CPI inflation could inch up to
So, if we were to assume that onion 30 2400
defaults set supply, pushing
to worsen as
major onion produc- 4.2% in Q3 and 4.5% in Q4FY20. For
prices have risen by around 50% on prices higher. 25 2000
1.13 ing states such as Karnataka, Maha- every additional ₹5/kg increase in
a year-on-year (y-o-y) basis, then
$7.8 billion 20 1600
1.05 bonds due rashtra and Madhya onion prices, average 14.8
15 1200
next year Pradesh has taken a PRICES BITE CPI inflation in Q3 and
10 800
1
bit.ly/2mR9AKJ toll on supply, result- Q4 could be higher by 1,105.9
400
3 Sep 2018 25 Sep 2019 ing in sharp price SUSTAINED FOR now, subdued MEANWHILE, 20bps. Full-year infla- 5
Source Bloomberg increases. increase in onion core inflation expectations are that tion could inch up to 0 0
prices could pose a growth will give the buffer stock of Source: ICICI Securities Jan 2017 Sep 2019
SATISH KUMAR/MINT At an all-India threat to headline some comfort to onions would keep 3.75%. For every addi-
NAVEEN KUMAR SAINI/MINT
level, average retail retail inflation the central bank prices in check tional ₹5/kg increase
onion prices have in onion prices, head- may have inched up slightly in be partly seasonal, driven by delayed
Terror of $2 tn loss makes risen from ₹25/kilo- line inflation could be August, but core inflation (excluding supplies due to weather conditions
traders fear year-end gram (kg) in August to ₹35/kg in Sep- that would mean an upswing of 80 higher by 5bps,” she said. food and fuel) continued to move and lower production versus last
tember so far. Going by media basis points (bps) in the food infla- The threat to headline inflation is lower. year. Efforts to boost domestic sup-
Pain from the sell-off at the end of last year is reports, among the worst hit are tion. As for the index of consumer there. But economists believe that Meanwhile, expectations are that ply through the national agency’s
still fresh in the minds of European stock metros like Mumbai and Delhi price inflation (CPI), that would the RBI is not in a tough spot in the the buffer stock of onions would stocks are ongoing, which together
traders, making them especially nervous where retail onion prices have translate into an up move of 30bps,” near term at least. While economists contain the up move. The Centre has with the imposition of minimum
about the latest string of bad omens. As the soared as high as ₹80/kg. said Suvodeep Rakshit, senior econ- are watching the trend in onion pri- a buffer stock of 56,000 tonnes of export price restrictions should help
anniversary of the 2018 market carnage anni- If this price movement sustains, omist, Kotak Institutional Equities ces, they expect the central bank to onion, of which 16,000 tonnes have quell prices after the seasonal and
versary approaches, investors wonder then it will emerge as a threat to the Ltd. One basis point is one hun- cut policy rates and keep the stance been offloaded so far, reported news festive demand ebbs,” said Radhika
whether they should fear an encore of the headline retail inflation which has dredth of a percentage point. accommodative in the October pol- agency PTI. Rao, senior vice president and econ-
panic that wiped out $2.1 trillion from the been below the mandated target of According to Anagha Deodhar, an icy. The comfort is food inflation “Spike in onion prices appears to omist, DBS Bank.
European benchmark.
At first glance, things couldn’t be more dif-
ferent: ECB has boosted stimulus measures
and investors aren’t expecting a US reces-
sion until next year. But this week’s release of
disappointing economic data in France and
Germany came as an unpleasant wake-up
call for fans of equities that have returned
Why privatization of public sector firms Fears of balance sheet stress leave
19% this year. The seriousness of the slow-
down makes investors doubt the potency of
ECB’s measures without the support of indi-
can add a sweetener after the cut in tax Petronet LNG investors jittery
vidual nations’ stimulus. BLOOMBERG

R. Sree Ram nies, then it can derive much better companies become more focused Pallavi Pengonda
sreeram@livemint.com value. on returns optimization, which is pallavi.p@livemint.com On fire
Race is on “We believe the government can key for minority shareholders. Better volume prospects kept sentiments for the Petronet
LNG stock upbeat in recent months.

S P
Emerging market currencies had their worst hares of Bharat Petroleum raise significantly higher amounts if A case in point is Concor, which is etronet LNG Ltd’s shares
August on record in 2019. Corp. Ltd (BPCL), Container it were to privatize the PSUs in container rail transportation fell 5% Monday on the Petronet LNG Nifty 200
Change in imports (Month-on-month) 120
Capital goods Consumer goods
Corp. of India Ltd (Concor), through (1) strategic sale of a major- business in India. The company, National Stock Exchange
(in %) and Shipping Corp. of India Ltd ity stake or (2) sale of its shares in whose valuations are not particu- after it said it has signed a non- 115
6
extended gains on Thursday, rising tranches to institu- larly cheap, has been binding memorandum of 110
2.5-10%. tional and retail inves- Ownership investing in multi- understanding (MOU) with 115.50
4 105
CNBC-TV18 reported that the tors with an explicit change can modal logistics parks Tellurian Inc. Sure, the man-
government is considering selling commitment to help companies (MMLPs) to sharpen its agement’s assurance during an 100
2
its entire stake in these companies, reduce its holding to become more competitive advan- investor call that Petronet’s
95
driving their stocks higher. below 50%,” pointed tage. equity investment in Tellurian 103.86
0 focused on
Whether the government is con- out Kotak analysts in a But as analysts at would be limited up to $1 bil- 90
sidering privatization or stake sales 25 September report. returns SBICAP Securities Ltd lion has helped sentiments a 31 Dec 2018 26 Sep 2019
Base value taken as 100 Source Capitaline
-2
will be clear in time. Analysts, how- “We would strongly optimization said, the company is bit. Further, Petronet has said
SATISH KUMAR/MINT
-4
ever, said that privatization can argue against golden yet to see benefits from that it will enter into back-to-
fetch the government higher reve- share or any form of the investments. A pri- back contracts with off-takers Tellurian’s Driftwood project. agreed for a 16% project IRR
-6
nues. residual government control as it vate owner may have been more to avoid any volume or pricing The Driftwood project is set- with its offtakers. However, we
Aug Sep Dec Mar Jun Kotak Institutional Equities would lead to valid concerns about dynamic in capital allocation. risk, which brings comfort. ting up a 27.6 million tonne believe the likely IRR profile
2018 2019 research said that minority stake continued government influence “Return on capital employed has But Petronet’s shares are LNG liquefaction capacity, gas on this project might be lower
Source: US Census Bureau
sales till now have only yielded lim- on the operations of the compa- been trending lower for Concor still about 3% lower this week. transportation pipelines and due to: a) muted growth out-
NAVEEN SAINI/MINT
ited financial benefits due to sub- nies,” added Kotak. over the last decade as large invest- Note that capital allocation has development of upstream look for domestic LNG
par valuations of the public sector An investor will value ownership ments in MMLPs are yet to fructify,” been a key concern for the reserves, slated to start com- demand amid a likely jump in
Imports of consumer and companies. Instead, if the govern- control and management freedom analysts at SBICAP Securities said
ment decides to cede majority own- more than being a passive partner. in a note.
stock for a while
now. In that
mercial produc-
tion in 2023.
domestic gas production in
next 2-4 years from RIL’s and
Petronet, along
capital goods jump in US ership and privatize these compa- Ownership change can also help Perhaps the case for strategic sense, investors with its affiliates, According to ONGC’s KG fields; and b)
divestment is the strongest for should have wel- will invest $2.5 bn SBICAP Securities PLNG’s desperation for an
US imports of consumer and capital goods BPCL. “We are even more optimis- comed the devel- to purchase Ltd, any stock investment opportunity,”
jumped in August by the most this year, sug-
Low valuations tic about the privatization of BPCL opment. How- price re-rating in added SBICAP.
Shares of most public sector enterprises trade at low valuations, with 5 mtpa of LNG
gesting American companies scrambled to on three grounds. First, the latest ever, fears of case of Petronet From a more near-term per-
beat another round of tariffs on Chinese
some even being de-rated over the years.
tax rate cut and roll-back of stock potential stress from Tellurian’s will be contingent spective, it helps that volume
12 month forward price-to-earnings multiple (in times)
merchandise. All other major import catego- Concor 30 market related taxes suggests GoI is on the balance Driftwood project on more clarity on outlook is robust. Petronet
ries declined, though, and the overall mer- BEML 14 finally doing big bang reforms, sheet if Petronet the likely IRR pro- exceeded volume estimates for
chandise-trade deficit widened by less than BPCL 13 which are welcomed by investors. does not receive file: a) on equity the June quarter. Analysts
forecast to $72.8 billion, according to Com- NTPC 9 Second, the latest income tax rate any help from its affiliates still investment in US liquefaction expect the company to report
merce Department data. Power Grid Corp of India 9 cut would lead to large loss of reve- weigh on the stock, say ana- business; and b) of its offtake strong volume numbers for the
The government’s advance report on NHPC 7 nue for GoI, which could be made lysts. agreement with promoters. September quarter as well. Not
Thursday showed wholesale inventories NMDC 6 up by the privatization of BPCL. Petronet, along with its affil- IRR is internal rate of return, a surprisingly, despite the weak-
increased the most in three months. The ONGC 6 And, thirdly, privatization would iates, will invest $2.5 billion to measure used to evaluate the ness in the stock this week,
data offer a first glimpse of the effects of Coal India 6 improve the broader market senti- purchase up to 5 million ton- lucrativeness of an investment. Petronet shares have outper-
Oil India 5
President Donald Trump’s announcement of Source: Kotak Institutional ment,” said ICICI Securities Ltd in a nes per annum (mtpa) of lique- “Please note for the Dahej and formed the Nifty 200 index so
BEML valuation for FY21 from Antique Stock Broking Equities estimates
a 10% tariff on an additional $300 billion in client note. fied natural gas (LNG) from Kochi terminals, PLNG has far this calendar year.
NAVEEN KUMAR SAINI/MINT
Chinese goods. Companies have tended to
boost shipments after the announcement or
threat of levies, to get ahead of paying
higher prices. BLOOMBERG

Korean investors lose

98.1% in German-rate bets
Hospital chain margins likely to improve, but full recovery will take time
Clifford Alvares hospitals that are paying full adding about 2,380 beds, the tration, and the rise in medical
South Korean investors in a derivative prod- clifford.a@livemint.com taxes such as Narayana Hruda- Out of the ICU Number of operating beds
Number of beds added
Ebitda margin (%)
(Left-hand Scale) highest in the previous five years. tourism.
uct tied to German sovereign bonds lost laya Ltd. Other hospital chains The margin squeeze That has slowed considerably as “The focus now is to try and
due to the aggressive 30,000 18

H
98.1% of their principal, highlighting the dan- ospitals looked like a that are availing exemptions are expansion in the 14.9
only 622 beds were added in stabilize the operational facilities
25,301
ger of super-risky assets sold to individuals growth area for investors likely to shift to the new tax number of hospital 25,000 15 FY19. New hospitals take time to rather than expand aggressively.
that regulators are now probing. The prod- owing to the rising need regime. beds may be easing.* 12.4 mature, leading to higher Regulatory restrictions had
19,993
uct, whose value was linked to the German for good healthcare. But new reg- “Full tax paying companies are 20,000 12 expenditures, taking a toll on impacted the business, but price
*Includes Apollo Hospitals
10-year government note yield, caused such ulations, which capped prices of likely to benefit the most from Enterprise Ltd, Fortis Healthcare margins. Overall Ebitda margins increase and cost rationalizations
15,000 9
big losses because the yield on the bench- procedures and devices, laid the reduction in effective tax Ltd, Narayana Hrudayalaya Ltd, contracted to 12.4% in FY19 from have been done now and are
Aster DM Healthcare Ltd, Max
mark fell sharply to around minus 0.6%, speed-breakers on the hospital rates while hospital operators India Ltd, Healthcare Global 10,000 6 14.9% in FY15. helping to improve the operating
according to Woori Bank, which sold it. highway. In fact, most of the hos- such as Apollo Hospitals, which Enterprises Ltd, and Shalby Ltd. Analysts note that hospital metrics. Many players have seen
About 8 billion won ($6.7 million) of the pital sector stocks seem to be in avail of benefits arising out of Ebitda: Earnings before interest, 5,000 3 chains have started to make small a good recovery in the second
1,976
four-month securities matured on Thursday. the intensive care. Barring 35AD, are likely to move to the taxes, depreciation and 622 price increases on procedures. half of FY19 and Q1FY20”, said
amortization 0 0
There was 127 billion won of such securities Apollo Hospitals Enterprises Ltd, new tax regime, given no plans of FY15 FY16 FY17 FY18 FY19 They are also focusing on cost Kapil Banga, assistant vice presi-
Source: Icra
tied to German rates that were outstanding which gained 40% the past year, expansion/commissioning of rationalization and looking at dent, corporate ratings, Icra Ltd.
SATISH KUMAR/MINT
as of Aug. 7, according to the Financial all gave negative returns. units in the near term where the ways to monetize existing assets. That would mean that the
Supervisory Service. The FSS is investigating A shift to the new tax regime 35AD benefit applies. Aster DM reforms, while its India opera- While tax cuts will help, a Some of the factors likely to aid slowdown in the capital expendi-
whether enough information was provided could be beneficial though. The Healthcare Ltd derived the bulk tions are PBT negative and are revival in operating margins the hospital sector are incidences ture of the last two years may
to investors when such products tied to government’s corporate tax cut of its revenues (83%) from its unlikely to see any benefit in the remains a challenge. Hospital of rising lifestyle diseases, look up in the coming years. As
overseas rates were sold, and whether they to 22% excluding surcharge is Gulf-countries operations, which near term,” said Kotak Institu- chains aggressively expanded increasing life expectancy, for the stocks, recovery is likely
had design flaws. BLOOMBERG expected to boost earnings of will not be impacted by the tional Equities in a note to clients. their bed capacity up until FY17, deeper health-insurance pene- to take more time.

Mark to Market writers do not have positions in the companies they have discussed here
06 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI CORPORATE

Synergy Group yet to inform Jet m

MOVES
A weekly list of C-Suiters who have moved up

lenders of its investment plans the corporate ladder either within or outside
their companies.

Abhishek Kapoor
Appointed as COO residential
business at Puravankara

Appointed as country
Aditi Puri Batra manager at Intuit Inc.
There’s been no update from Synergy since its founder Germán Efromovich visited India a few days ago
Ajay Bhutoria Appointed as CEO at L&T NxT
Rhik Kundu and Deborshi Chaki told a few Jet employees, while Appointed as director of
NEW DELHI/MUMBAI visiting the hangar, that the South Hitesh Raj
corporate communications
American company will present a Bhagat
for India at Truecaller

H
opes for a revival of
Jet Airways (India)
Ltd are precariously
poised as the only
company that is
assumed to be still interested in
the grounded carrier, South
America’s Synergy Group, has not
informed lenders how it plans to
revive the airline.
Ashish Chhawchharia, the reso-
lution professional (RP) for Jet
Airways, has not heard from Syn-
ergy Group, two people with
direct knowledge of the matter
said, requesting anonymity.
“There has been no update
(from Synergy) since the com-
pany’s founder Germán Efromov-
ich visited India a few days ago,”
said one of the two people cited
above.
Mint had on 17 September
reported that Efromovich met Jet
Airways’ lenders in Mumbai for a
couple of days, as part of the South
American company’s initial due
diligence process to buy a signifi-
cant stake in the grounded Indian
airline.
During his visit to India, Efrom-
ovich, the 69-year-old Bolivian-
born entrepreneur, wanted to
understand the operations and
finances of Jet Airways and also
the situation that led to the
grounding of the airline.
Efromovich also wanted to
understand bankers’ interest in
revival of the airline (Jet Airways),
m SHORT TAKES
Oracle says investigators have
asked it for information on Google
Washington: Oracle Corp.,
resolution plan to lenders by 14
October, as it needed to complete Appointed as head marketing
the due diligence by then. SpiceJet to Ishita Medhekar at Metropolis Healthcare
launch 46
Mint couldn’t independently new
verify this. An e-mail sent to Anto- domestic Appointed as chief marketing
nio Guizzetti, president of Wash- flights Jasneet Bachal officer at Yes Bank
ington-based Guizzetti & Associ- bit.ly/2mT0kW
ates, legal adviser to Synergy C
Kunal Gupta Appointed as partner at Trilegal
Group on the Jet Airways acquisi-
tion went unanswered. Guizzetti Appointed as country
was not available on his phone.
There are a few hurdles in Syn-
Nikhil Rungta manager India business at
Verizon Media
ergy Group’s bid to revive Jet Air-
ways. While Efromovich wants a Appointed as head Ad sales
huge haircut from the lenders of Nitin Bawankule at Star TV
Jet Airways on its existing debt of
over ₹8,500 crore, the airline will Appointed as country
also have to find an Indian partner, Omar Sherief
general manager at Roche
which they haven’t so far, said a Mohammad
Diabetes Care
third person with direct knowl-
Jet Airways suspended operations in April because of a severe cash crunch. MINT edge of the matter, who didn’t Appointed as head marketing
want to be identified. Preetha Athrey at Twitter India
Mint reported on 17 September During his visit to Mumbai, Airways. Although many workers Under India’s foreign direct
citing people close to the matter. Efromovich also visited the Jet have left Jet Airways following its investment (FDI) laws, a foreign Appointed as president and
A banker had earlier told Mint Airways’ hangar, where he inter- grounding, some of its pilots— carrier can invest up to 49% in an Sachin Gupta chief innovation officer at Usha
that Synergy seemed to be a credi- acted with the remaining staff especially those flying its Boeing Indian airline. Also, the law states
ble investor, especially that the control of the air-
Source: Accord India, executive search worldwide
with the group’s experi- THE LONE BIDDER line should lie with Indian
ence in running several promoters, with a major-
airlines. SYNERGY Group’s DURING his visit, HE also visited the Jet HIS team told a few ity of board members
However, the banker founder had met Jet
lenders in Mumbai
Germán Efromovich Airways’ hangar, where Jet employees that
sought details about he interacted with the the company will
required to be Indian citi-
who spoke on the condi- for a couple of days Jet’s operations and few remaining staff present a resolution zens, including the chair-
tion of anonymity said in mid-September finances members plan by 14 October man.
that during their interac-
tion with Synergy Group,
Another challenge is
the financials of the Syn-
resolution plan for Jet Airways was members. He also expressed his 777 fleet—and the company’s ergy Group. During the last few
FM gets pvt banks on
not discussed, though the resolu- interest to take over the grounded engineering department, have years, quite a few airlines owned or
tion process and a probable time- airline.
line for its implementation were Efromovich’s Mumbai visit had
stayed put. partially owned by the group have
According to a person close to shut shop due to a funds crunch.
board in growth push
talked about. sparked hopes of a revival of Jet the matter, Efromovich’s team rhik.k@livemint.com
FROM PAGE 1 tal, private investment will
respond and banking system
This comes against the will be open to underwriting
backdrop of GDP growth cool- the appropriate projects.”
ing to a six-year-low of 5% in “We are all committed to
Dutch court administrator to be part of Jet CoC meet the June quarter. Private con- benchmark-based lending
sumption expenditure slowed from October. Most of us are
to an 18-quarter low of 3.1%. likely to follow repo-based
Sitharaman said tepid sales benchmark… It will be trans-
PTI also conducting insolvency of commercial vehicles are parent,” Kotak said.
feedback@livemint.com proceedings against the debt- seen as a cyclical problem by On Friday, Sitharaman
BLOOMBERG NEW DELHI ridden carrier. bankers. “Private banks and announced that manufactur-
Jet Airways is facing insol- NBFCs feel this problem will ing companies that are not

T
which has clashed with Alphabet’s he National Company
Google in business disputes, has Law Appellate Tribunal
received requests for information (NCLAT) has allowed
from congressional and state the Dutch court administrator
investigators looking into allega- of Jet Airways to attend the
tions that Google violated anti- Committee of Creditors (CoC)
trust law. meetings of the debt-ridden
Oracle, which is knowledgeable carrier.
about Google’s advertising busi- A three member NCLAT
ness, has received information bench said that the Dutch
requests from the Texas attorney administrator would be part of
general’s office and the House of the CoC meeting and would be
Representatives Judiciary Committee, said Ken Glueck, an Ora- given minutes of the meetings.
cle executive based in Washington. REUTERS The appellate tribunal also
set aside the earlier order of
the Mumbai bench of the
JLR to stop output at UK for a National Company Law Tribu-
nal (NCLT), which had denied
week due to Brexit, says CEO to recognize the Dutch insol-
BLOOMBERG
vency proceedings. NCLT had
barred Dutch court adminis-
trator from taking part in the
Jet Airways insolvency pro-
ceedings in India.
The appellate tribunal order
came after the resolution pro-
fessional of Jet Airways and
Dutch court administrator
agreed to co-ordinate in the
insolvency proceedings ongo-
vency proceedings in the get over in the next one or two availing of tax sops can opt for
Netherlands and was declared quarters,” she said. a 22% corporate tax rate, while
bankrupt in response to a In the case of passenger new manufacturing compa-
complaint filed by two Euro- vehicle sales, it is largely nies that register and start pro-
pean creditors. driven by sentiment and the duction between 1 October
In April, H Esser Finance bankers say it will and March 2023
Company and Wallenborn resume in the The passenger can avail of an
Transport had filed a petition near future. The vehicle industry even lower tax
citing unpaid claims worth current slow- suffered its rate of 15%. The
around ₹280 crore. down has worst-ever effective tax rate,
Following this, a trustee in impacted auto- including cess
monthly sales
charge was appointed by the mobile sales, and surcharges,
Dutch court and it had among other fac- performance for existing com-
The grounded airline owes more than ₹8,500 crore to lenders. approached its Indian coun- tors. The passen- in August panies comes
terpart for access to the finan- ger vehicle indus- down from
ing in India. Earlier, during the the order of the Mumbai cial as well as assets of the air- try suffered its 34.94% to 25.17%,
last hearing, NCLAT had bench of NCLT, which had line. worst-ever monthly sales per- while for new companies, it
directed the reso- declared overseas One of the Jet Airways air- formance in August. Sales of falls from 29.12% to 17.01%.
lution profes- The bench said bankruptcy pro- craft, parked in the Schiphol domestic passenger vehicles “On the whole, it was a ton-
sional of Jet Air- that the Dutch ceedings null and Airport in Amsterdam, has plunged 31.6% to 196,524 units ic-like meeting where I have
ways and Dutch administrator will void. already been seized. from a year earlier, shows data heard a lot of good and positive
court to file the be part of CoC Earlier, on 20 The grounded airline owes from the Society of Indian things. And not one voice said
terms and condi- September, dur- more than ₹8,500 crore to len- Automobile Manufacturers. there is a concern, there is a
meeting and will
tions of their ing the last hear- ders. It also has a large debt by Uday Kotak, managing shortfall of demand. To my
agreement. be given minutes ing, NCLAT had way of accumulated losses to director of Kotak Mahindra surprise, more credit for them
NCLAT’s of the meetings asked the resolu- the tune of ₹13,000 crore, ven- Bank, said that private invest- is possible because none of
direction came tion professional dor dues of over ₹10,000 crore ment will pick up soon as the them voiced liquidity con-
while hearing a of Jet Airways to and salary dues of over ₹3,000 government had last week cerns,” said Sitharaman.
petition filed by the Dutch cooperate with the Dutch crore. The consortium of len- announced corporate tax cuts. Asit Ranjan Mishra contrib-
court administrator against court administrator, which is ders is led by SBI. “With lowering of cost of capi- uted to this story .

Gaydon: Britain’s biggest carmaker, Jaguar Land Rover,

will halt production at its British factories for a week in
November, chief executive officer Ralf Speth said on Thurs-
day, joining BMW and Toyota in plans to help mitigate any
immediate disruption from a no-deal Brexit.
“We cannot think about it, we just have to do it,” he told
reporters at an event in Gaydon, central England, to mark
Kapoor family’s holding in Yes Bank falls by 4.57% in a week
the opening of a new advanced product creation centre.
The industry, Britain’s biggest exporter of goods, has been Anirudh Laskar the end of June. Yes Capital sell a part of his holding to loan availed by MCPL from
vocal about its concerns that a disorderly departure from anirudh.l@livemint.com had a 3.26% in Yes Bank then. One97 Communications Ltd, RNAM was converted into a
the European Union could disrupt the flow of components MUMBAI In just a week’s time, Kapoor the parent of Paytm and Paytm secured loan by creating a
and vehicles, ruining production processes and damaging family’s promoter group has Payments Bank. Interestingly, pledge on the entire 170.25

the viability of factories. REUTERS
GSK suspends sale of ranitidine on
detection of carcinogen
New Delhi: GlaxoSmithKline Pharmaceuticals Ltd (GSK) has
suspended the distribution and supply of ranitidine hydrochlo-
ride products to all markets, including India, as a precautionary
PRADEEP GAUR/MINT measure after regulatory authori-
ties detected a carcinogen N-ni-
trosodimethylamine (NDMA) in
its products.
Following the suspension of the
certificate, GSK Pharmaceuticals
has initiated a voluntary recall at
the retail level of Zinetac tablets
manufactured in India using
active pharmaceutical ingredients
(API) from Saraca Laboratories
Limited, a company spokesperson
said. LEROY LEO
Y
es Bank Ltd’s
co-founder Rana
Kapoor’s family busi-
ness Yes Capital (India) Pvt.
Ltd on Thursday sold a 1.82%
promoter group stake for
₹241.52 crore, according to an
exchange filing on Thursday.
The identity of the buyer is not
known.
In an exchange filing on 21
September, the total holding
of Kapoor and his two family-
owned entities—Yes Capital
and Morgan Credits Pvt. Ltd
(MCPL)—came down from
9.64% to 6.89% after MCPL
and another Kapoor-group
promoter entity sold a com-
bined stake of 2.75% to an
undisclosed buyer.
Kapoor and his two associ-
ate firms held a total of 10.6% at
sold 4.57% Yes Bank shares,
which were termed as “dia-
monds” by Kapoor in a tweet
last year.
And, for the first time since
the inception of Yes Bank in
2003, Kapoor family’s holding
in the bank is now lower than
the holdings of the bank’s
other co-founder, Madhu
Kapur and her family-owned
firm Mags Finvest Pvt. Ltd,
who together own an 8.33%
promoter stake in the bank.
While selling the 2.75%
stake last week, MCPL said the
transaction proceeds would be
used to make a total prepay-
ment, including interest, of
₹722 crore of the outstanding
non-convertible debentures
(NCDs) of MCPL subscribed by
Reliance Nippon Life Asset
Yes Bank co-founder Rana Kapoor’s family business Yes Capital
on Thursday sold a 1.82% promoter group stake for ₹241.52 cr. MINT
Management Co. (RNAM).
MCPL had sold zero coupon
NCDs worth ₹1,160 crore to
RNAM. Morgan Credits said it
had utilized the funds for incu-
bation of new-age startup busi-
nesses. “We have concluded
the news appeared the same million shares held by Kapoor
day when it was revealed that and MCPL then.
One97 had trebled its losses. In a late evening statement,
The promoters are willing Yes Bank said proceeds from
to trim their the stake sale by
stakes through Kapoor family’s Yes Capital will
divestments and stake is now lower be utilized to pre-
also amend the than the holdings pay its entire bal-
Articles of Associ- of Madhu Kapur ance outstanding
ation, letting new NCDs of Yes
and her family
shareholders earn Capital sub-
board seats, owned company scribed by vari-
according to the Mags Finvest ous schemes of
report. On 24 Franklin Tem-
July, Mint pleton Asset
reported that Kapoor and Management (India) Pvt. Ltd.
the stake sale solely to delever- MCPL were forced to pledge Yes Capital had in Septem-
age MCPL.” their entire 7.34% stake with ber 2017 placed rated, zero
On 10 September, Mint RNAM, asset manager of Reli- coupon NCDs worth ₹630
reported that Yes Bank’s ance Mutual Fund. crore with Franklin Temple-
shareholding may witness a As the bank’s stock value has ton. The NCDs were sched-
major churn by the year-end as eroded by close to 90% over uled to mature in October
Kapoor has initiated talks to the past year, the unsecured 2020.
08 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI CORPORATE

Blackstone to soon take full SAT dismisses ITC’s appeal over

sale of Leela hotels to Brookfield
control of IBREL office assets Bidya Sapam
HT

bidya.s@livemint.com
MUMBAI

T
he Securities Appellate
Firm sells holdings in Gurugram, Mumbai to Blackstone, looks to offload rest soon Tribunal (SAT) on Thurs-
day dismissed an appeal
by ITC Ltd challenging the sale
Madhurima Nandy of Hotel Leelaventure Ltd’s
madhurima.n@livemint.com assets to Brookfield Asset Man-
BENGALURU agement Inc, bringing the
Canadian alternative asset

I
ndiabulls Real Estate Ltd manager a step closer to acquir-
(IBREL) said it has sold its Muthoot ing four luxury Leela hotels.
Finance to
remaining stake in some of its raise
The sale, worth more half a
office assets in Gurugram and ₹1,000 cr billion dollars, was approved by
central Mumbai to Blackstone through Leela’s board in March but was
Group Lp for around ₹2,717 crore, NCDs put on hold following direc- The sale was approved by Leela’s board in March, but was put on
paving the way for the New York- bit.ly/2nAg8hh tions by the Securities and hold following Sebi’s directions over complaints by ITC and LIC.
based investor to take full control of Exchange Board of India (Sebi)
IBREL’s commercial office portfo- based on complaints by ITC JM Financial ARC was a related four hotel properties and a land
lio. and Life Insurance Corp. of party and could not vote on the parcel to Brookfield for ₹3,950
In a statement, the Mumbai- India (LIC). board’s resolution approving crore, making it the largest ever
based developer said it has sold its Hotel Leelaventure on the deal. hotel deal by value in India. The
stakes in joint venture companies Thursday posted on BSE the In an oral order on Thursday deal was finalized after more
Yashita Buildcon Ltd and Ashkit voting results of a postal ballot SAT rejected ITC Ltd’s plea. than a year of talks between
Properties Ltd—which own assets in in the asset sale. The majority of The Economic Times reported Brookfield and stakeholders of
Udyog Vihar, Gurugram and certain the shareholders (89.12%) online that ITC is seeking to debt-laden Hotel Leelaventure,
subsidiaries in Indiabulls Properties voted in favour of the deal, the challenge the SAT ruling in the which has been in the middle of
Pvt. Ltd and Indiabulls Real Estate results showed. Supreme Court. a financial restructuring.
Co. Pvt. Ltd, that own assets at Sebi told Hotel Leelaventure “This (order) means that the The luxury hotel chain owns
Lower Parel in Mumbai—to Black- in July to conduct a fresh share- deal will be closed soon. five hotels, comprising more
stone. The sale of these assets was As of March, Blackstone had committed around $5.4 billion in real estate assets in India, of which $4 billion is in holder vote seeking approval There’s nothing much to be than 1,400 rooms, across New
concluded on 25 September. office assets alone. ANIRUDDHA CHOWDHURY/MINT for the sale of the assets to done now. This was the only Delhi, Bengaluru, Chennai,
“...This has generated significant Brookfield. Accordingly, the thing holding up Mumbai and Udai-
financial resources for the company “Once the transactions are done, park in Chennai for ₹900 crore. To 14% as planned earlier, with mini- hospitality company issued the deal. The The luxury hotel pur. The deal
towards achieving its goal of zero net the ready office assets will eventually be sure, apart from the strategic aim mum cash payout. Blackstone’s fresh postal ballot notices to its deck has been chain owns five excludes the hotel
debt in the current financial year,” be added to the Embassy Office to reduce debt, the recent transac- property investments in India are set shareholders on 13 August. It cleared,” said a hotels, including in Mumbai, but
IBREL said. Parks REIT, which is co-owned by tions are part of Indiabulls Group’s to cross the $6-billion mark this year, planned to declare the results person who is more than 1,400 involves a land par-
IBREL and its subsidiaries are Blackstone and Embassy Group,” larger plan to exit the real estate even as the global private equity firm on 18 September but did so on closely involved cel in Agra.
rooms, across
also in the process of finalizing a said a person familiar with the devel- business and the proposed merger plans to diversify into the logistics Thursday. with the deal, As part of the
transaction with Blackstone “to opment, who asked not to be named. with Lakshmi Vilas Bank. In June, sector. As of March, Blackstone had The markets regulator had requesting ano- Delhi, Bengaluru, proposed deal,
divest direct or indirect committed around $5.4 bil- also allowed JM Financial Asset nymity. Chennai, Mumbai Brookfield will buy
stake in commercial assets INVESTMENT PORTFOLIO lion in real estate assets in Reconstruction Co. Ltd, which Email queries the Leela brand,
at Worli in Mumbai, rights India, of which $4 billion is owns a 26% stake in Leela, to to an ITC existing and all
or stake in Delhi’s K.G. Marg IBREL has sold its BLACKSTONE had LATER, it had BALCKSTONE’S in office assets alone. Post- vote on the deal. spokesperson remained unan- upcoming management con-
and Sector 104 & Sector 106 stakes in JV firms bought a 50% stake in
Yashita Buildcon and some of IBREL’s office
also bought
Indiabulls’ office
property
investments in India
March, it bought the ‘One ITC, which holds 7.92% in swered till press time. A tracts of Hotel Leelaventure
in Gurugram”, the IBREL Ashkit Properties to projects in Mumbai in park in Chennai are set to cross the BKC’ office building in Hotel Leelaventure, had spokesperson for Brookfield and also absorb the employees
statement said. Once the Blackstone 2018, for ₹4,750 crore for ₹900 crore $6-bn mark this year Mumbai for ₹2,500 crore. moved SAT challenging the declined to comment on the of the four hotels.
Worli and Gurugram deals Then, in September, Black- market regulator’s order, tribunal’s order and the pro- The hotel company, set up
are concluded, the entire stone and developer partner rejecting its argument that the posed transaction. by C.P. Krishnan Nair in 1986,
strategic stake divestment to Black- A Blackstone spokesperson didn’t Bengaluru-based developer Salarpuria Sattva bought the 100- sale of assets to Brookfield The hotel chain was earlier had been looking to pare debt
stone will total up to ₹4,420 crore. respond to queries. Embassy Group bought 14% in acre Global Village Technology Park should not be allowed because barred from declaring or acting by selling its hotels, as well as
Once the acquisition of stake in all The New York-based investor had IBREL from promoter Sameer Geh- in Bengaluru for ₹2,800 crore of related-party transactions. upon the results as per an some of its non-core assets,
projects is concluded, it will give first bought 50% stake in some of laut for around ₹950 crore at around (around $390 million) from Coffee The deal hit a roadblock after interim order passed by SAT on including land. The company
Blackstone complete control and IBREL’s office projects in Mumbai, ₹150 a share. Embassy, along with Day Enterprises Ltd. Of this, Black- Hotel Leelaventure’s minority 13 September. had an outstanding debt of
ownership of IBREL’s pan-India in early 2018, for ₹4,750 crore. Later, Blackstone, has also been contem- stone’s share of investment is around stakeholders, ITC and LIC, In March, Hotel Leelaven- around ₹3,799 crore as of 31
commercial office portfolio. it had also bought Indiabulls’ office plating how to buy the remaining $275 million. approached Sebi alleging that ture had said that it was selling March 2018.

Mint Media Marketing Initiative

CORPORATE BUZZ
NHPC SIGNS MOU WITH GOVT OF HIMACHAL PRADESH
FOR EXECUTION OF 449 MW DUGAR HE PROJECT
KALYAN JEWELLERS
LAUNCH NEW SHOWROOM
Liquidity framework needs to WhistleDrive
raises fresh
IN VASHI
Kalyan Jewellers has announced
have more flexibility: RBI panel funds from
the opening of its new showroom in
Vashi. This is the brand’s 2nd show-
room in Vashi and 139th showroom FROM PAGE 1
ANIRUDDHA CHOWDHURY/MINT
Colosseum
globally. The new showroom, will Yunus Y. Lasania
comes against the backdrop of
be an exclusive boutique-style the liquidity squeeze seen in yunus.l@livemint.com
showroom which will showcase the aftermath of the Infra- HYDERABAD
exclusive jewellery designs from structure Leasing and Finan-

An MoU was signed betweeen
NHPC and Principal Secretary, En-
ergy Govt of Himachal Pradesh for
execution of 449 MW Dugar HE
Project in Chamba district. MoU was
signed by Balraj Joshi, CMD, NHPC
and Principal Secretary, Energy
Govt of Himachal Pradesh at Shimla
VIT VELLORE RECOGNISED AS INSTITUTION OF EMINENCE
BY GOVERNMENT OF INDIA
VIT Vellore has been recognised as
an Institution of Eminence by Govt
of India. The Chancellor of VIT, Dr
G Viswanathan said that VIT has
strategies to move up to the top 500
in the world university ranking in the
next three years time. He also said
that in World Subject Ranking, VIT
has already been placed under 550
ranking in three subjects namely-
computer science and information
systems, electrical and electronics
engineering and chemistry. The loE
PRSI DELHI CHAPTER LAUNCHES BANYAN TREE SERIES
The Delhi Chapter of PRSI
launched their third workshop on
photography recently under its flag-
ship platform: ‘The Banyan Tree’
series at Bharatiya Vidya Bha-
wan, New Delhi. Pushkar Hans,
renowned fashion photographer
and Umesh Mehta, International
in the august presence of Jai Ram
Thakur, CM, Himachal Pradesh. The
Project is a run of the river scheme
on Chenab river and its estimated
present day cost of the project is
4112 cr. The project will generate
1610 MU in a 90% dependable year
with 95% machine availability.
status, as per Viswanathan, will give
VIT the freedom needed to intro-
duce new innovative programmes
and schemes to benefit national
and international society at large.
Photography Coach conducted
the workshop. The workshop was
inaugrated by (Retd IAS), Director,
Bharatiya Vidya Bhavan. Also, the
workshop focused on technicalities
of photography and live demonstra-
tions to bring about the best shots
using a smartphone.
the brand’s exquisite collections.
The new showroom was inaugu-
rated by the company’s chairman
and managing director TS Kaly-
anaraman. He was also accompa-
nied by executive directors Rajesh
Kalyanaraman and Ramesh Kaly-
anaraman at the launch event.
As part of the launch offer, the
jewellery brand has slashed the
making charges also known as val-
ue additions or VA which will start
from Rs199 onwards* Kalyan Jew-
ellers also promises giveaways
worth Rs one crore in the form of
instantly redeemable vouchers.
UNITED BANK OF INDIA
AWARDED ISO 27001: 2013
CERTIFICATION
Kolkata-based United Bank of In-
dia has been awarded ISO 27001:
2013 certification for its Informa-
tion Security Management Sys-
tem (ISMS) at data centre (DC),
data recovery centre (DRC) and
cyber-security operation centre
(C-SOC).
The certification process in-
volved an extensive audit, con-
ducted by certification body
against the criteria set out by the
ISO 27001:2013 standards on
various domains of IT or IS func-
tions. Based on the recommenda-
tions, United Kingdom Accredita-
tion Service (UKAS) accreditation
body issued ISO 27001:2013
certificate.
Bank has deployed various tech-
nologies to enhance cyber secu-
rity posture of the bank, along with
internal control system, united pe-
rimeter shield has been deployed
to further strengthen to defense
and prevent various internet-based
attacks.
cial Services Ltd (IL&FS) crisis
last year and the continuing
liquidity mismatches faced by
non-banking financial compa-
nies (NBFCs), leading many of
them to default on their loan
repayment schedules.
According to RBI data com-
piled by Bloomberg, system
liquidity remained largely in
deficit mode between October
last year and May. The situa-
tion has improved since, with
a liquidity surplus of ₹84,081
crore as of 24 September from
a deficit of as much as ₹1.7 tril-
lion as on 26 December.
The formation of the inter-
nal working group was
announced on 6 June to
review the current liquidity
management framework in
order to simplify it and suggest
measures to clearly communi-
cate the objectives. The
group’s report was put up on
RBI’s website on Thursday.
The report said the current
liquidity management frame-
work should largely continue
in its present form with a corri-
dor system, with the overnight
call money rate as the target
rate.
It said the design of the cor-
ridor system, with the repo
rate as the policy rate, would
generally require system
liquidity to be in a small deficit
of about 0.25-0.5% of net
demand and time liabilities
(NDTL) or total deposits.
“However, if financial con-
ditions warrant a situation of
liquidity surplus, the frame-
work could be used flexibly,
with variable rate operations
to ensure that the call money
rate remains close to the policy
repo rate. Thus, liquidity oper-
ations should take into consid-
eration the prevailing condi-
tions, based on which the
required tools will be used to
H
yderabad-based Whis-
tleDrive said on Thurs-
day that it has raised
₹72 crore from Chicago-based
Colosseum Group under its
Series B round of funding.
The company, which pro-
vides technology-enabled
fleet services to corporates,
now plans to enter two new
cities to add to the three where
The panel suggested that besides open market operations and it currently operates.
forex swaps, RBI look at longer-term repo operations at market- Rakesh Munnanooru,
related rates to offset build-up of a large deficit or surplus. founder and chief executive,
WhistleDrive, said the com-
achieve the objectives of volatility in liquidity. Although pany has a fleet of over 700
liquidity management frame- liquidity has been positive for vehicles across Hyderabad,
work,” it said. the last few months, it has not Chennai and Bengaluru. “We
“The report will likely dis- solved the problem of getting are looking to enter Pune by
appoint the market. It doesn’t liquidity into the stressed
change the existing frame- NBFCs. Banks would rather
coming January and February.
With the series-B funding we
work by much. The market put their money into reverse just got, we are looking at scal-
was hoping that banking repo than try to lend money to
liquidity would be allowed to this sector,” the economist
ing vertically, and plan to enter
the National Capital Region
toggle between surplus and said, requesting anonymity. (NCR),” he said, on the side-
deficit, depending upon the Owing to this flexibility, lines of a press conference.
monetary stance. The report RBI’s current provision of Munnanooru said Whistle-
instead suggests that the assured liquidity of up to 1% of Drive runs about 100,000
default mode should continue NDTL is no longer necessary. vehicle trips each month. With
to be of liquidity deficit Central banks globally the latest round of funding
(between 0.25-0.5% of NDTL) maintain a liquidity manage- (series-A was ₹5 crore in April
and categorically ment framework 2018), the company, which
states that mone- System liquidity is as an integral part had a revenue of ₹15 crore in
tary stance is dis- required to be in a of monetary pol- 2018-19, is looking to scale up
tinct from liquid- small deficit, but icy operations to its fleet as well, he said without
ity stance. In fact, this could be an not only ensure elaborating.
the allowance for Munnanooru said Whistle
impediment when adequate liquid-
surplus liquidity ity for the econ- Tech, developed by the com-
(if financial con- surplus liquidity is omy’s credit pany, allows corporates to
ditions warrant) is essential demands, but automate the entire transpor-
almost as an after- also to ensure tation process resulting in cost
thought,” said smooth transmis- savings and also experience a
Ananth Narayan, associate sion of changes in policy rates reliable, comfortable and
professor of finance at SP Jain to credit and deposit markets. secure ride to work, according
Institute of Management and This is achieved by ensuring to a company statement.
Research. that the inter-bank call money WhistleDrive’s offerings
According to an economist rate is closer to the benchmark include ‘Whistle Fleet’—a
of a bank, worldwide, mone- repo rate. Inter-bank call technology-enabled fleet,
tary policy tries to keep the money market is where banks ‘Whistle Shuttle’—a B2B shut-
overnight call money rate lend to each other, primarily to tle service for last-mile con-
close to the policy rate and ensure compliance with nectivity and point pick-ups
maintain a desired liquidity reserve requirements and to and ‘Whistle 360o’—an end-
level. “However, the idea here smoothen temporary cash- to-end transport management
is to see what is causing the flow mismatches. service.
 TECHNOLOGY FRIDAY, 27 SEPTEMBER 2019
NEW DELHI 09

WhatsApp Payments awaits Facebook lands digital To boost phone

sales, Samsung
content rights for ICC
nod, says Facebook’s Mohan events in sub-continent
to offer buyers
finance options
Nandita Mathur kinds of information. One of the big Saumya Tewari Sankalp Phartiyal
nandita.m@livemint.com things to recognize is that in many saumya.t@livemint.com feedback@livemint.com
NEW DELHI cases, we are dealing with compet- NEW DELHI MUMBAI
ing values and interests. On the one

F T
acebook sees itself as an ally
of India in its economic
growth, Ajit Mohan, com-
pany’s India vice-president
and managing director,
said. In an interview, Mohan, who
took charge as Facebook’s India
head in January, also shared his
thoughts on the social media giant’s
agenda, misinformation, data locali-
zation, startups, regulation, and the
synergy with WhatsApp. Edited
excerpts:
What’s the strategy for Face-
book in India with you at the
helm?
I think the starting point for us is
the deep recognition in the com-
pany that we’re excited about the
India opportunity and (are) grateful
for it. We see ourselves as an ally for
India in its economic growth and
social development. We have servi-
ces in India that reach every corner
of the country and there is a deep
engagement by users every day.
Facebook in India today has more
than 328 million monthly active
users (MAUs), WhatsApp has more
than 400 MAUs and Instagram,
especially in the last two years, has
been on fire. We see a consequential
combination of apps deeply embed-
ded in the Indian fabric.
What are the opportunities
where Facebook India can
make an impact?
We believe we can make a mate-
rial contribution to economic
growth and the agenda of job crea-
tion. That is because new ventures
and small businesses thrive on Face-
book. We have a family of apps that
in many ways represents the inter-
net in India and we want to make
sure that we make the interventions
that bend the curve towards fixing
the gender imbalance. The third
one is on financial inclusion with the
possibility of what WhatsApp Pay-
ments can do. WhatsApp Payments
hand, you want freedom of expres-
sion. On the other, you have legiti-
mate concerns over national secu-
rity. We are sensitive to the issues
that the government has raised.
Equally, the government has said
they think encryption is a good idea
and they believe in the value of pri-
vate messages. We’re dealing with
very difficult challenging trade-offs.
There are very thoughtful conversa-
tions going on to figure out what can
be a balanced approach.
What is Facebook’s position on
data localization?
We’re deeply conscious that in a
world where China has created a
model where the internet is walled
off, it is a tripolar world in some
ways. There’s the US, there’s
Europe, and then there’s India
which is a very consequential voice.
Ajit Mohan, Facebook India vice-president and managing director. What India does will influence the
global Internet economy. The right
is now a pilot for 1 million users and neurship in India. Can it impact answer is for data flows to remain
we are waiting for regulatory women on the internet? Can it fun- open for there to be opportunities to
approval. We have said we will com- damentally create new models that new services and algorithms that
ply with payments localization could foster innovation for the add value for everyone, including
there. world? I think Meesho meets all India. There’s no question of telling
The launch of the WhatsApp these criteria. If there are other India what to do. We’re committed
payments would be the beginning startups that meet those criteria and to building on the tech capacity that
of probably the biggest they’re interested in already exists, making the right kind
disruptor movement partnering with us, we of investments in India in a manner
and financial inclusion mint will remain very open that will fuel this transformation to
that India can think of. INTERVIEW to it. an internet economy.
You have invested in Facebook and its What sort of talks are you hav-
a couple of startups such as apps have come under the scan- ing with the government?
Meesho. Are you planning any ner for spreading fake news. Mature democratic governments
more such investments in start- How are you dealing with it? around the world, including in
ups? We recognize that there’s some- India, recognize that they’re dealing
Unlike a private equity fund, times the risk of bad actors using our with very difficult issues on which
we’re not saying we need to deploy family of apps to spread misinfor- we have to find the right answers.
a certain amount of capital within a mation. There has been a very front- But we welcome regulation. We
certain time frame. That’s not the footed approach to address it have recognized that we need to
lens with which we’re looking at it. through multiple ways such as the chart the new rules of the Internet.
We’re bringing in a really long- third-party fact-checking pro- Wherever we have had the opportu-
term, patient capital lens, but gramme on Facebook. In a private nity to communicate a point of view
equally driven by opportunities we forum like WhatsApp, which is on multiple things, we have lever-
see. We have an opportunity to fuel encrypted, one of the big changes aged and we have only seen open-
a model that will have an impact on we made was limiting forwards to ness on all issues linked to privacy
economic growth and entrepre- five that limited the virality of all and data.
S
he International Cricket amsung Electronics is to
Council (ICC) on Thurs- provide finance to poten-
day said that social tial smartphone buyers, a
media firm Facebook has company executive said on
become the exclusive digital Thursday, in a bid to boost
content rights partner for its smartphone sales in India
global events in the Indian where it faces fierce competi-
sub-continent. The deal size tion from rivals such as China’s
has not been disclosed. Xiaomi.
Facebook will carry a range The financing product, for
of digital content, including which Samsung has tied up
post-match recaps, in-play with a local shadow banking
key moments, and other fea- firm, will help the South
ture content for four years, The package includes key events Korean tech group offer quick
from 2019 to 2023, as part of like the 2020 T20 World Cup. and easy loans to all prospective
the agreement. The package smartphone customers,
includes 12 key ICC tourna- forms such as Twitter and Mohandeep Singh, Samsung
ments, including the T20 YouTube, during the 2019 India’s senior vice president for
World Cup 2020, World Cup World Cup. ICC claimed it has Regional mobile business told Reuters in
languages,
2021, World Test Champion- received more than 4.6 billion smartphone
a telephone interview.
ship, T20 World Cup qualifier views on video content with s driving “We are giving finance to
events, and the Under-19 #CWC19 videos across its dig- content consumers who have not been
cricket World Cup scheduled ital and social media plat- creation, served consumer finance in the
consumptio
to be held in 2020 and 2022. forms. On Facebook alone, n on
past,” Singh said.
“We are delighted to wel- there were more than 1.2 bil- YouTube He said the company would
come Facebook to the global lion minutes of content bit.ly/2m45nDt
launch the product in 5,000
cricket family for this multi- watched, over 10 billion stores in 30 cities, and by the
year, multi-market partner- impressions and more than 68 end of the year it wants to be in
ship, which is a million engage- 10,000 stores in 100 cities.
first for our sport. Facebook will ments. Unlike Western markets,
Throughout the carry a range of “With Face- where smartphones are often
competitive bid- digital content for book, Instagram, tied to telecom company con-
ding process, we four years—from and WhatsApp, tracts, the bulk of phones in
received tremen-
2019 to 2023—as I C C h a s a n India are sold by retailers, with
dous interest exceptional customers choosing wireless
from a range of part of the opportunity to carriers and mobile plans on
platforms, all of agreement leverage our fam- their own.
whom recognize ily of apps to With more than a billion
the phenomenal serve current wireless connections and just
reach of cricket. In Facebook, sports fans, as well as bring in about 450 million smart-
we have a genuine partner an entirely new generation of phones, India is a key growth
who shares in our ambition to fans. The future of augmented market for companies such as
continue to grow and deepen reality and virtual reality is Samsung, which sells its devices
engagement with cricket fans being charted by Facebook, through 180,000 retail outlets
globally using its platforms,” and we are excited about the and more than 2,000 exclusive
said ICC chief executive Manu possibility of bringing the best stores. Other smartphone play-
Sawhney. of our innovations to fans ers offer similar schemes
The collaboration builds on around the world,” said Ajit through tie-ups with finance
the content sharing partner- Mohan, vice-president and firms, but for Samsung having
ship ICC forged with Face- managing director, Facebook its own loan product will likely
book, along with other plat- India. help to drive sales. REUTERS

Every reason to visit Brisbane in every season

Will cheaper iPhone 11 help Apple OnePlus bets
W
ondering why

increase its market share in India? big on IoT

Brisbane is such a
hotspot now, just

Abhijit Ahaskar
with smart hop on a Malaysia Airlines
flight to the vibrant capital city
of Queensland. With buzzing
abhijit.a@livemint.com is how it is in telecom
TV debutsector as well. As far as dining and nightlife, exciting tors would like to buy spectrum to fill gaps
NEW DELHI attractions and events, ample
PoIs are concerned, Navadha Pandey
the telecom sector is a in 2G and 3G spectrum as well, the data
opportunitiestosoakintheart

A
pple may be a house- and culture, or even spotting
hold name in India, but
the popularity does not
mix of a number of networks which are spectrum will certainly see heavy demand,
navadha.p@livemint.com
NEW DELHI
whales,theRiverCityprovides
the ideal backdrop to experi-
reflect in its market share in interconnected;ftersosecuring PoIs need to be given. and this included 800, 1800 and 2300 and
ence the great Aussie outdoor

A
the country. In markets such the top
lifestyle.
as the US, Apple is the market
leader. Besides, it was the
How many, when, spot ininitially
India’s premiumhow much, how
smartphone market,
also 2100.
WHY CHOOSE
third-largest smartphone ven-
dor worldwide, with a market much augmentation—that to introduce an umbrella of IoT would
China’s OnePlus is now looking
MALAYSIAdepend AIRLINES What about 700 MHz?
share of 10.1% for the April- devices, starting with the debut
June quarter, according to from operator of itsto
smartoperator.
TV, which the com- But a consumer
Malaysian Hospitality at its 700 has been put up for auction for the Photo: Tourism Queensland
research firm IDC. pany believes, will be at the finest: Malaysia Airlines is the
However, Apple has not Apple iPhone 11s on display at the company’s of aFifthnetwork
Avenue store should
heart of a smartbe home. able to connect
national carrierto the nothing
of Malaysia, first shorttime.
of incredible, The ecosystem is developing in
been able to replicate the suc- in New York. The tech giant dominates the US market, but hasn’t The firm hopes smart TVs offering the best way to fly to, where compromising comfort
cess in India, having less than met with the same success in India.
2% market share in the coun-
consumer ofwill AFP other
help bolsternetwork,
its premium-
only brand proposition, and be
which
from and around our forthe
is Malaysia. world.
price is never a possibilityWe have 700 being used in the
try, according to research firm starting at ₹76,900 in India. the LCD
Counterpoint.
requirement.
screen and dual cam- the first step towards becoming
The phone's price was slashed era setup. “This time there is a a lifestyle technology company
US and
Malaysia Airlines carries with Malaysia Airlines. Enjoy
40,000guestsdailyonmemo- a plethora of services,Europefrom but not even in China. So,
One major reason for the to ₹52,900 and, subsequently, bit of a difference
poor performance is the huge it was sold for ₹49,900.
Anyas they changes
not creating a new product for
in regula- Malaysia’s diverse
are for the millennials.
“We see the TV becoming
rable journeys inspired by advanced
mentandcompli- this auction will set the ball
in-flight entertain-

tions that are needed? Can richness. Airlines embodies mint a l l o wa n c e t o rolling for device ecosystem in
difference between the price Also, with the launch of India. It is a universal product the hub of the smart home eco- Malaysia mentary baggage
of iPhones and the average every new iPhone, Apple and also flagship in many system. It is best positioned to
the government
selling price in India of other slashes the prices of its older ways. The pricing is definitely be the command centre of all
address the incredible
mealtimes, for an 700MHz to start developing in
tastebud-tingling
smartphone brands, which is smartphones. So after the aggressive
$200 (about ₹14,000).
To increase sales in India the price of Apple iPhone 8 Kawoosa,
probably looking at the devices...There

challenge
chief analyst and make your home
will be a lot
launch of the iPhone 11 series, markets like India,” said Faisal of new devices that will come to
this through
smart, but
diversity of
INTERVIEW
Malaysia, captur-
ing its rich tradi-
MALAYSIA experience you
AIRLINES w i l l t r u l y India. Now, 700MHz as you
and other emerging markets, (64GB) and iPhone 8Plus founder, techARC, a market you will still need a master con- Photo: Malaysia Airlines
Apple has been coming up (64GB) were reduced to intelligence regulations
firm. and
trol policies?
device which we believe a
tions, cultures,
cuisines via its inimitable know,
Explore more veryon malay-high
remember.
quality spectrum
entertainment. because
from Shipwreck Snorkelling,
with low-cost iPhone variants ₹39,900 and ₹49,900, respec- Despite limited market TV can become,” Vikas Agar-
since 2013, when it launched tively. Older models such as share, Apple Interconnect
reported double- wal, general
the iPhone 5C—$80 cheaper Apple iPhone 7 (32GB) are digit growth in India in its OnePlus, said in an interview.
is something
manager, India, which
customer touch is in
points.the of its propagation
Malaysia Hospitality across all siaairlines.com
characteristics, it is used
Reconnect with nature at sand tobogganing on the
the world’s first and largest DesertSafaritour,Quadbiking,
than the iPhone 5S. While the now available for ₹29,900. quarterly remit of Trai.
earnings report pub- Trai
The company
two had the same screen size Despite being priced lower, lished in June 2019. But the four-pronged strategy for its
Act clearly
has devised a gives
Malaysia Airlinesit the
offers foris your
As a member of oneworld®, MUST DO IN BRISBANE
supe- If cricket extensive coverage includingBetween Juneindoor
koala sanctuary, Lone Pine Segway tours and more.
passion, a visit Koala Sanctuary, and interact and October,
and resolution,
remit. But interconnect is directly
many users aren’t question is whether the product pipeline: Smartphone
the 5C had a plas- To increase sales sold on these low- iPhone 11 will finally help to serve the user, smart TV for journeysrelated to a priority.
coverage. Those who value
kangaroosgood
riorconnectivitywithseamless to the Gabba cricket ground is with 100 species of Australian witnessthemajestichumpback
to 1,000 destinations animals, hand-feed quality 4G
whalesmigratingupnorthpast
congestion which is related to quality
tic body and ran in India, Apple has cost models as Apple break into the list of top the home, mobility or travel
on a 32-bit proc- been coming up they miss out on smartphone vendors in India. experience and workspace, access to overof 650ser-
across 150 plus countries and
airport Climbspectrum
is the perfect way offor dis- 4G
miss aservices
Koala cuddle. providing For some data
Story Bridge Adventure and wild lorikeets and don’t South East Queensland.
peace andser-
tran-
essor that was some trendy fea- The answer is most likely no, Agarwal said.
one generation
with low-cost
variants of its
vice
tures such as wide as there issues,
are multiple options which, OnePlus on again,
Thursdayis monitored
lounges worldwide.
Business Class:
by vices,oramic weviews
covering the city with pan-
expect bid for the spectrum.
Feast your way to foodie quillity just 30 mins from the
of heavenatEatStreetNorthshore cityliesSanctuarybySirromet.
older. bezels a n d out there that offer a premium launched its first smart TV— Planning a trip to
In 2016, Apple flagship iPhones smaller screens, experience
since 2013
Trai. at halfSo,
the pricecongestion
of the OnePlus TVparameters 55 Q1 for of
take
Step into a world
comfort in
care Australia? Fly What steps have you taken to ensure
Brisbane and its and keep an ear out for the Nestled around the Laguna
s c e n i c s u r - touringbands!Forcaffeinelov- paperbark trees and giant
l a u n c h e d and the 2-3 year the iPhone 11. Also, at current ₹69,900 and the OnePlus TV Malaysia Airlines
another low-cost
smartphone—
old camera tech- prices,
nology.
over a period
the iPhone 11 is up 55 ofQ1 Pro
time that there
for ₹99,900—only
against some of the top-end India. It will compete with
in are no barri-
Business Class,
where a calming to the capitalthatof this round of spectrum will be bet-
roundings. Or ers, new boutique coffee joints scribbly gums, Sanctuary by
take a free walk- at Burnett Lane and Coffee Sirromet lets you escape the
Queensland for
iPhone SE—that was later However, with the iPhone smartphonesers in interconnection.
such as Samsung Samsung, LG and Sony, and
assembled in India, to keep 11, Apple has shown far more Galaxy S10 (₹61,900) and One- will initially focus on the top 20
ambience and a
warm welcome
ter than
its buzzing before?
i n g t o u r — Anthology are a must try. If everyday and connect with
B r i s b a n e diningwithaviewismoreyour nature. The tranquil bushland
environment
costs down. While these mod- aggressive intent. Unlike Plus 7 Pro (₹48,999).
els cost less than the premium iPhone XR, which was
Of the total cities.bands theongovernment
The firm is banking
“Even at this price, the the smart TV launch to repli-
from a world-
class cabin crew
is In Gu the recent past, last six-to-eight-
r e e t e r s — t o style, Brisbane has options to setting, houses the tented
n c o v e r dine by the river or even on a pavilions that offer elegant

from affordable. The iPhone in India and had an inferior A11 whichputting is above ₹50,000,in and thephoneauction, which bands do months I can say for sure, some of the deci-
versions, they were still far launched at a higher price tag iPhone 11 is for luxe category, cate its success in the smart- greets you at the Brisbane’s hip cruise. comfort and style, so you will
category. OnePlus, door. With seats that double as laneways humming with Findyourperfectgetawayat feel a million miles away.
SE was launched in India at Bionic processor, compared that market is still less than 1%. which entered India five years
₹39,999, at a time when com- with iPhone XS that ran on A12 Considering youthat,expect we cannot to be in
ago through high demand?
an invite-only sions we haveMoreton taken
a mini office and experienced trendy coffee joints, restau- Tangalooma Island Resort on
staff that will keep your every rants and bars.
are transformational
Other memorable tours
Island, just over an from Brisbane include Gold
as
panies such as OnePlus were Bionic, the iPhone 11 will be expect anything substantially strategy for selling mobile devi-
offering premium products available at ₹64,900 and will changing for AsAppleI mentioned
in India. ces, captured that Indian
its highest ever telecom sec- AttheSouthBankParklands,
need attended to, makes for a
far as improving ease of doing business in
hour from Brisbane by resort Coast and Sunshine Coast. As
t r u l y p r e m i u m f l y i n g spread over 17 hectares of riv- passenger ferry and interact they say in warm and hospi-
under ₹30,000. be powered by the same A13 This pricing will help it per- shipment share of 43% in the
torbutisApple
Apple went back to the low- Bionic processer as the iPhone form better, preparing
will still premium itself
segment for in April- heavier
experience.
E c o n o
data
my C l a s
use
s : T h e
Indian telecom sector is concerned.
erfront land, enjoy from a vari- with wild bottlenose dolphins tableMalaysia,SelamatDatang!
etyofoptions—freeswimming, who visit the shores every eve-
cost variant strategy again in 11 Pro and Pro Max. What sets remain a niche player,” June, Counterpoint Research
2018 with the iPhone XR, it apart from the top variants is Kawoosa and said. more applications, said in a note dated 30so July.the data spectrum One, 100% FDI (foreign direct invest-
Economy Class cabin is celebrated eateries and ningtobehand-fed.Orchoose Created by Mint Brand Cell

would be in demand certainly. While opera- ment) is allowed in both telecom services as
10 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI MARKETS AND FINANCE

MFs, borrowers can’t have EXPERT

VIEW
standstill pact, says Sebi ANDY MUKHERJEE

Respond to this column at

feedback@livemint.com

All entities need to follow the mutual fund regulations, says Sebi chief Ajay Tyagi AN AFRICAN FINTECH
RBI had earlier set ₹1,000 as
the cap for withdrawals. REUTERS Anirudh Laskar
anirudh.l@livemint.com
SAFARI CAN BE A WILD
PMC Bank MUMBAI
RIDE FOR STANCHART

A
jay Tyagi, chairman of
withdrawal
F
the Securities and rom automated teller machines (ATMs) to credit cards and
Exchange Board of PayPal, the West’s dominance of innovation in consumer

cap raised India (Sebi), on Thurs-

to ₹10,000
FROM PAGE 1
tion Act, 1949 and an adminis-
trator has been appointed. The
administrator is taking neces-
sary steps in this regard,” it
said.
RBI, which is investigating
accounting lapses at PMC
Bank, on Tuesday imposed
curbs including a withdrawal
cap, sparking panic among
depositors. The bank was also
barred from making fresh
loans and taking deposits.
Meanwhile, employees pro-
tested outside the residence of
Housing Development and
Infrastructure Ltd director
Sarang Wadhawan over loans
given by PMC Bank. Accord-
ing to a Hindustan Times
report, customers of PMC
Bank lodged a police com-
plaint on Thursday, alleging
malpractices by the bank’s
directors. The complaint
alleged that at least 14 direct-
ors, including the bank’s chair-
man, are responsible for mis-
appropriation of funds.
The police have not yet filed
a first information report. “We
have received a written appli-
cation from account holders of
PMC Bank. Further action will
be taken after examining the
complaint,” a police officer
told HT.
The PMC Bank wildfire did
not spare Reserve Bank Offi-
cers’ Cooperative Credit Soci-
ety Ltd either. As on 31 March,
the society had fixed deposits
totalling ₹105 crore with PMC
Bank. The society’s FY19
annual report showed the
quantum of fixed deposits with
PMC Bank was ₹96 crore at the
end of FY18 and rose 9% since
then. These deposits are part
of the society’s investments of
₹478.64 crore in fixed depos-
day said India’s asset
management companies (AMCs)
finance appears to have exhausted itself.
At the top of the emergent new order is the fintech duo from
China—Alibaba Group Holding Ltd and Tencent Holdings Ltd.
cannot resort to any kind of stand-
still agreement with borrowers.
Buyer under
IBC should
get clean
Next in line are Alphabet Inc. and Walmart Inc., whose highly
localized smartphone payment rivalry is playing out between Goo-
“There cannot be any standstill asset as due gle Pay and PhonePe in India. In South-East Asia, two homegrown
agreement between mutual funds diligence ride-hailing giants are aspiring to dominate commerce.
and their borrowers. All entities tough: Tata But the ultimate frontier in tech-enabled consumer banking lies
Steel CFO
need to follow the (mutual fund) far from the Asian theatre. Consider this one statistic: In 13 coun-
regulations,” Tyagi said on the side- bit.ly/2n0htgM tries, more than 10% of the population uses mobile phones for pay-
lines of an annual capital market ments. All of them are in sub-Saharan Africa, where a majority of
summit organized by industry adults don’t have basic bank accounts.
body, the Federation of Indian The rise of African mobile money is associated with M-Pesa,
Chambers of Commerce and Kenya’s digital-wallet revolution. Now traditional lenders like
Industry (Ficci). Standard Chartered Plc, with a presence on the continent going
A standstill agreement is an back more than a century, are discovering that online banking can
understanding between a lender Ajay Tyagi, chairman of Securities and Exchange Board of India. MINT help them mobilize low-cost current and savings accounts more
and a borrower, wherein the lender profitably than acquiring customers via physical branches.
stops demanding a scheduled pay- invested in. When an AMC agrees adopt a “waterfall” approach for Sebi mentioned that any exten- StanChart’s digital push, which began last year in Côte d’Ivoire,
ment of interest or principal on a to a standstill agreement—prima- valuation of money market and sion in the maturity of a money has spread to other countries including Uganda, Ghana, Kenya and
loan so that the borrower gets time rily to facilitate a borrower who is debt securities in their portfolios. market or debt security shall result Tanzania. The next stop will be Nigeria. Among the attractions of
to restructure its liabilities. unable to service debt on the due AMCs must ensure all traded secu- in the security being treated as going fully online: a 15-minute client sign-up process that doesn’t
On Wednesday, Subhash Chan- date—it essentially short-changes rities are valued on the basis of “default”. If a security is in default require physical validation of people or documents. Can Hong
dra’s Essel Group-owned Zee investors by disregarding the com- traded yields, subject to identifica- beyond its maturity date, the AMC Kong’s eight virtual banks—StanChart will be among them—simi-
Entertainment Enterprises Ltd mitted FMP maturity date. tion of outlier trades by the valua- must disclose the details and the larly compress expensive and time-consuming know-your-cus-
(ZEEL) said its lenders, including AMCs have been facing rising tion agencies, Sebi added. value of the security and the total tomer processes? That’s one question analysts will ask when the
mutual funds, had extended the risk exposure, because of potential Sebi altered the definition of amount due (including principal lenders finally arrive next year, after a delay caused by the ongoing
loan repayment “below-invest- and interest). anti-government protests in the city. The answer would partly
deadlines. GOING BY THE RULEBOOK ment-grade” and It said the disclosure will con- determine the dent online-only banks will make in the sprawling
Mutual funds “default” in mutual tinue till the value of the security deposit franchise of HSBC Holdings Plc, Hong Kong’s undisputed
have lent around UNDER a standstill SUCH pacts short- ON Wednesday, fund norms, stating recognized in the net asset value is banking leader.
₹4,000 crore to agreement, a lender change investors by
allows a borrower to delaying committed
ZEEL said its lenders,
including MFs, had
that a money mar- received, or for a period of three Large as it is, Africa remains a tiny laboratory for finance. The
ZEEL through non- hold payments to maturity date of fixed extended the loan ket or debt security years from the date of maturity of revenue pool for the continent was $35 billion in 2017, according
convertible deben- restructure its debt maturity plans repayment deadlines shall be classified as the security. Sebi said all debt secu- to McKinsey and Co., which sees it expanding to $53 billion by
tures (NCDs). Fund “below investment rities with residual maturity of over 2022. By contrast, HSBC’s Hong Kong operations alone garnered
managers of fixed grade” if the long- 30 days have to be valued at the $18 billion last year. There are other distinctions, too. Hong Kong
income schemes, such as fixed defaults by a number of firms (in term rating of the security is below average of security level prices and Singapore are giving out brand new virtual banking licences,
maturity plans (FMPs), had bought which mutual funds have invested), BBB- or if the short-term rating of obtained from valuation agencies whereas in Africa, StanChart uses its
the ZEEL NCDs. which eventually led to rating the security is below A3. to be appointed by Association of StanChart is existing commercial banks to offer its
While open-ended mutual fund downgrades. Tyagi said mutual A money market or debt security Mutual Funds of India. right to focus on SC Mobile app. Not only will virtual
schemes typically have a flexible funds should not rely completely shall be classified as “default” if the On 27 June, Sebi had disap-
redemption deadline, closed-end on credit rating agencies (CRAs) interest and/or principal amount proved standstill agreements and deposits before banks in Asia—especially those that
don’t have pedigreed lenders backing
schemes have strict fund closure and should have their own way of has not been received, on the day said it will initiate action against it dips its toes them—have to win depositors’ trust
deadlines linked to the maturity assessing risks. such amount was due, or when mutual funds if there were defaults into online from scratch, they’ll also have to find
dates of the NCDs or other debt On Tuesday, Sebi had said in a such security was downgraded to in cases involving loans against lending borrowers online. Big Data is supposed
papers, in which the scheme has circular that mutual funds should “default” grade by a CRA. shares to company promoters. to make it easier to find creditworthy
customers; yet that theory will be put to
the test, since digital-only banks won’t have any branch managers
intimately familiar with local businesses and their prospects.
Africa won’t be without its own peculiar challenges. The verdict
will come down when StanChart begins digital-consumer lending
Equities surge over 1% on hopes of more govt reforms operations there, starting with Kenya later this year. This is an area
where fintech firms are growing fast, though the basic infrastruc-
ture for disciplined lending—consumer-credit registries—are
underdeveloped in many parts of the continent. The sudden deci-
Nasrin Sultana Following several growth- suggest a debate on efficacy sion by Tala to shutter its consumer-loan operation in Tanzania has
nasrin.s@livemint.com Markets rebound supportive measures under- beyond sentiment, including also made the industry jittery. Just last month, the California-based
MUMBAI The benchmark BSE Sensex rose 396.22 points to close at taken recently, finance minis- on the capex cycle. Some of fintech raised new money from the likes of PayPal. Even in Kenya,
38,989.74 on Thursday. ter Nirmala Sitharaman this is likely to show up in the where SMEs routinely fund themselves with working capital from

its, short-term deposits and
shares of one cooperative
bank. Of this, ₹473.36 crore is
in fixed deposits and ₹5 crore
in short-term deposits.
The bank was put under
regulatory restrictions on 23
September and cash with-
drawals were capped for six
months. Chaotic scenes were
witnessed as customers
rushed to branches even as
policemen were deployed to
avert any untoward incidents.
Described as a multistate
cooperative bank, PMC Bank
has branches in Maharashtra,
Delhi, Karnataka, Goa, Guj-
arat, Andhra Pradesh and
Madhya Pradesh. Founded in
1984 in a small room in Mum-
bai, the bank has a network 137
branches and is among India’s
top 10 cooperative banks.
gopika.g@livemint.com
I
ndian stocks gained on
Thursday, riding on hopes
the government will follow
up last week’s corporate tax
cuts with more tax reforms.
The benchmark BSE Sensex
rose 396.22 points or 1.03%, to
38,989.74, while the 50-share
Nifty gained 1.15% to 11,571.20
points.
With top executives of some
of the world’s biggest compa-
nies in attendance, Prime Min-
ister Narendra Modi said at the
Bloomberg Global Business
Forum in New York that India
will not shy away from taking
the “toughest decisions”.
He promised to further sim-
plify India’s tax regime,
including bringing tax on
equity investments in line with
global standards, making a
strong pitch to global business
leaders to invest in India.
39,200 announced steep corporate form of lower interest rates fintech, onerous debt loads could become a problem. StanChart
38,989.74
39,100 (close) tax cuts on Friday to revive (20-30 basis points) from is right to focus on deposits before it dips its toes into online lend-
Sensex
growth and investment, driv- banks, small price cuts, higher ing. It’s embarrassing enough that the lender was unable to tell reg-
39,000
ing the Sensex up 8% since ad spend, higher wages or ulators how some of its private-banking clients amassed their
38,900 then. Foreign brokerages have higher dividends. A lot may be wealth, as Bloomberg News reported recently. Promoting an unsus-
38,800 upgraded their also retained, like tainable credit culture among poorer African customers could be
38,700.48 targets for bench- Analysts said in consumer a PR disaster.
38,700 (Open)
mark indices, the next set of companies. It The rewards of getting it right are high, though. HSBC, Stan-
38,600 38,593.52 stating the meas- may not boost Chart’s traditional rival, has bet big on the Beijing-sponsored
(Previous close) reforms may be
38,500 ures have signifi- abolition of long- n e a r - t e r m Greater Bay Area, an economic powerhouse connecting the manu-
9.15am 3.30pm
cant positive
Source: Bloomberg term capital gains growth, yet we facturing hubs of southern China— and the gambling centers in
implications for think this may be Macau—with Hong Kong, and the financial and corporate services
PARAS JAIN/MINT
corporate profita- tax and dividend a major reform to the city has to offer. But not only is the mainland caught up in a
Analysts said the next set of “While Indian markets bility, broader distribution tax aid realizing global trade war, its relationship with Hong Kong is also fraying.
reforms may be abolition of recovered from profit booking economy and medium-term And while StanChart has its strong presence in South-East Asia,
long-term capital gains tax from the sharp gain, momen- market valua- growth, or even especially Singapore, to compensate for any weakness in China and
(LTCG) and dividend distribu- tum was broad-based with tions. prevent stagnating lower Hong Kong, HSBC is far too reliant on both. Investors took note
tion tax (DDT). auto, banks and metals leading However, analysts at UBS growth,” UBS said in a note on when Beijing snubbed HSBC by excluding it from the group of
Vinod Nair, head of research the gains on expectation of said the measures may not 25 September. banks that help set the loan prime rate, a new policy tool.
at Geojit Financial Services better demand during festive boost near-term growth but The fiscal stimulus has also The Africa push may not have a direct bearing on StanChart’s
Ltd attributed Wednesday’s season. This positive trend is think this may be a major raised hopes that the Reserve digital plans in Asia, but it makes sense. Even StanChart’s rivals pri-
worldwide selling to the politi- likely to be maintained in com- reform to realizing medium- Bank of India may further cut vately say that the specialist emerging-markets lender, which CEO
cal drama in the US, some- bination with ease in trade war term growth, or even prevent key interest rates in its mone- Bill Winters has been trying to remake with uneven success, has
thing which was reversed and domestic stimulus,” he stagnating lower growth. tary policy review meeting a good story to tell investors. A tale from exotic Africa, no less. And
today. added. “Our investor discussions next week. that, too, when HSBC is running thin on happy news.BLOOMBERG

A year since IL&FS default, the worst is not over yet for non-bank lenders to realty ANIRUDDHA CHOWDHURY/MINT
Madhurima Nandy a couple of defaults and there that grew rapidly on the back of Amit Goenka, managing finance minister to offer last- lenders and this year, it’s not
madhurima.n@livemint.com are other NBFCs who are facing real estate lending defaulted director and CEO, Nisus mile funding to stuck projects; going to be easy,” the first of the
BENGALURU liquidity concerns. Even after a rating downgrade Finance Services Co. Pvt. Ltd, however, they also come with two persons said.
though projects or assets prompted lenders to recall a said the supply of capital for multiple conditions. Outstanding commercial

A
year since the implo-
sion of Infrastructure
Leasing & Financial
Services (IL&FS) Ltd set off a
liquidity crunch, the crisis has
only deepened for non-bank
lenders to real estate, as the sec-
tor continues to limp along.
Lending by non-banking
financial companies (NBFCs)
which kept real estate afloat in
the previous years is down to a
trickle, and executives in the
sector say the worst is yet to
come. “There is still a lot of pain
left in the NBFC sector and the
cleaning-up process is yet to
happen,” said Ashish Khande-
lia, founder of Certus Capital
Pvt. Ltd. “We have already seen
weren’t bad, they turned bad
because construction funding
isn’t happening. In between,
home loans were also slow in
disbursement and overall con-
sumer sentiment has been
low,” Khandelia said.
He said much of the capital
needed to solve the issues will
come from overseas and more
systematic resolutions are
needed to make it a bit easier for
NBFCs, so they take haircuts in
some cases and move on.
In July, Dewan Housing
Finance Corp. Ltd (DHFL)
defaulted on interest pay-
ments, hurting mutual funds
which had lent to it. In Septem-
ber, Altico Capital, an NBFC,
substantial amount of debt,
sparking a liquidity squeeze.
“The problem with many
wholesale NBFCs has been
rapid growth in no time, poor
asset selection, weak deal
underwriting practices, greedy
asset and liability management
framework, sector concentra-
tion and high leverage. It’s clear
by now that NBFCs need to rely
on cash flows alone for exits.
Once refinancing stopped, the
passing-the-parcel game has
also stopped,” said Amar
Merani, managing director and
chief executive officer (CEO) of
Xander Finance Pvt. Ltd.
With NBFCs cutting down
on real estate lending, there are
NBFC lending, which kept real estate afloat in the previous years,
has reduced to a trickle following the IL&FS default.
just four-five institutional len-
ders active in the market today
from 20-25 players earlier.
The NBFC liquidity crisis
and lending freeze in real estate
comes against the backdrop of
a sharp slowdown in India’s real
estate sector.
Despite government meas-
ures to revive stalled projects
and offer financial comfort,
there are no signs of a recovery.
real estate has shrunk by two- The commercial real estate real estate loans by banks,
thirds and lending stopped loan portfolio of NBFCs could NBFCs and housing finance
mainly because see stress building companies stood at ₹6 trillion
of asset-liability Outstanding up from January, in FY19, of which ₹1 trillion was
mismatches. commercial realty with around from NBFCs. Around 70% of
“The funding loans by banks, ₹70,000 crore of this ₹1 trillion will come up for
gap is creating a NBFCs and HFCs these loans com- staggered repayment from Q4
large burden in ing up for stag- FY20, Mint reported in Sep-
stood at ₹6 tn in
terms of con- gered repayment, tember.
struction of pro- FY19, of which ₹1 tn according to credit “There are good opportuni-
jects and cash was from NBFCs rating agency ties for NBFCs to invest in
flows. Many pro- India Ratings and because competition is low, but
jects have already Research. most are cautious to lend.
taken off courtesy NBFCs Two NBFC managers, who Lending which is happening
which were bankrolling every- didn’t wish to be named, said now is on the merit of the
one but now, that has stopped,” that there could be trouble project and cash flows and the
he said. brewing for some companies as premise that money should
However, Goenka is partly 30 September approaches. “It’s come back from the project,”
optimistic about the recent half-yearly closing, when said Shashank Jain, partner,
measures announced by the repayments need to be made to deals, PwC India.

From the Internet of Bodies to sex robots, dramatic advances in sex tech could end up redefining human nature
Sandipan Deb
feedback@livemint.com
GURUGRAM
E
veryone and his uncle knows
about the Internet of Things
(IoT). For instance, you could be
on a work trip to Berlin and be
able to get the dog food dispenser
at your home in Bengaluru to serve a meal
to your beagle, after the sensor on Bruno’s
collar has alerted your smartphone that he
is unusually restless. This, while the self-
driving car you are travelling in, and
which has access to your calendar, is tex-
ting your client that traffic is heavy and
you may be late for your appointment by
ten minutes.
The IoT has been coming for the last
decade or so, and is still supposed to be
just round the corner. So while we wait for
it to arrive and change our lives, welcome
to the Internet of Bodies (IoB), a term
coined by British body technologist Ghis-
laine Boddington. You are now back in
your Berlin hotel room after a hard day’s
work and in the mood for love. You
squeeze a bracelet on your wrist and your
partner, asleep in Bengaluru, feels an
urgent amorous touch on his wrist, and
wakes up. He video calls you and you tell
him that you want sex. You have an inter-
active clitoris massager and he has an
interactive penis stroker. You follow each
other’s gasped-out instructions, he con-
trolling your device and you his, by tap-
ping or swiping on your own devices, and
bring each other to climax. The IoT sce-
nario is not yet reality, but the IoB one is— sation through VR gloves is poor. But now,
you can do it today. This is teledildonics,
or remote intimacy technology, and it is
developing at a scorching pace.
REMOTE SEX
Remote sex can be beneficial sensation of handling,
T here’s a vast array
of technology
products out there for
to people with physical
geographically sepa- mobility problems. Sexbots
rated partners, from can be used to treat sexual
“smart” vibrators that
can be controlled dysfunction and help teach
remotely through
mobile apps, to con- how to become better lovers ize the VR sex industry.
nected pillows that let
you hear your faraway lover’s heartbeat
when you are both in bed, and long-dis-
tance kissing devices (we have consciously
refrained from giving any brand informa-
tion, except in one case, in this article). In
the near future, advances in haptic tech-
nology (which simulates the sense of
touch) will enable users to feel their dis-
tant partner’s body during lovemaking.
REPORTAGE
BIRDS, BEES AND BYTES
TECH IS CHANGING SEX
The next frontier is brain-computer
interface (BCI)—using thoughts to make
machines, say a robotic limb, perform
tasks. In June, scientists at Carnegie Mel-
lon University in the US developed the
first-ever non-invasive mind-controlled
robotic arm. Right now, it can perform
only the simple task of tracking and fol-
lowing a computer cursor. But a break-
through has been made, and the possibili-
ties are limitless. Will humans one day be
able to achieve brain-to-brain connec-
tions? Where our bodies can use BCI to
bond with the sensations of other bodies,
however far off? It would take the concept
of intimacy and the resulting sensual
pleasure to a whole new level. All one
would need is a stable 5G connection.
IMMERSIVE SEX CONTENT
I
n online virtual worlds, users can create
custom avatars to work out their wildest
fantasies without fear of exposure or
judgement. Some sex toys can now be
connected to the users’ avatars, so that
they can have more immersive experien-
ces and feel the sensations as the avatars
have sex. In the coming years, as the tech-
nology behind haptic sex toys and virtual
reality (VR) become more powerful, the
line dividing “real” sex with someone in
your physical space and virtual sex in
online worlds with computer-generated
entities may disappear.
In VR, once the user puts on the clunky
headset, everything seems absolutely real.
But VR has been lagging in the touch-and-
feel department—the transmission of sen-
South Korean scientists claim to have
developed a fine lightweight glove of sili-
cone with sensors on the thumb, index
and middle fingers, that
can imitate the physical
prodding or stroking a
host of different materi-
als. When this technol-
ogy is commercially
available—perhaps a
couple of years from
now, it could revolution-
SEX ROBOTS
T he concept of “sex robots” is hardly
new. In fact, if one starts from Roman
poet Ovid’s story of the sculptor Pygma-
lion who carves an ivory woman that he
then falls in love with and wishes into ani-
mated life, the fascination with man-ma-
chine intimacy—and the idea of sex
dolls—goes back two millennia.
| TALKING POINTS | IDEAS
Companies are racing to create fully
functional sex robots or sexbots. Sexbots
are all female currently, but we will almost
certainly have male sexbots in the not-so-
distant future. Available models are capa-
ble of only a few facial expressions, eye
movements and rudimentary lines of con-
versation, but they are getting better by
the day. The most advanced one is US firm
RealDoll’s Harmony, which can crack
jokes, talk dirty, make realistic noises dur-
ing sex, and comes with self-learning soft-
ware that remembers facts from earlier
conversations to provide better compan-
ionship.
But artificial intelligence (AI) will
improve sexbot capabilities swiftly. Imag-
ine an AI-powered sexbot which comes
with a choice of personality types that a
man can download into it, and which can,
over time, learn—and keep learning—to
discern his likes and dislikes, and respond
to all his moods in an unquestioning and
always-approving manner. Plus she obe-
diently fulfils his every sexual demand any
and every time, and can access a vast
cloud-based database to adapt and
upgrade herself to provide him the exact
type of sexual pleasure that his body
uniquely demands. And she is a perfect
cook. Isn’t that the ultimate fantasy for
many men?
ROBOTS AND RELATIONSHIPS
T he most fundamental truth about
technology is that it is neither good
nor evil. It is simply what it is. Only its
nature of use and consequent effects can
deserve moral judgement. Simulated VR
environments can offer a safe and effec-
tive way to explore social issues and teach
young people about potentially risky sce-
narios. Remote sex can be beneficial to
people with physical mobility problems.
Sexbots can someday be used to treat sex-
ual dysfunction and help teach people
how to become better lovers to human
partners.
But, like everything tech, it’s compli-
cated. The first scientific validation of the
notion that humans can empathize with
robots came in 2015, when researchers at
Toyohashi University of Technology in
Japan asked people to view images of
humans and robots in painful situations,
such as having their hand injured by a
knife, and studied their electrical brain
signals. The brain activity showed that the
participants felt a similar level of empathy
for humans and androids.
A 2016 survey of British young adults
aged 18-34 years found that 26% of them
were willing to date a robot, as long as it
| INSIGHT | THE BOTTOMLINE
mint
SHORT
STORY
WHAT
From remote sex to immersive
sex content, sex technology is
revolutionizing human
relationship with sex and love.
And with that comes the moral
dilemma.
WHY
While it can be a great enabler for
the lonely, there’s also a risk that
it will encourage us to regard real
humans as no more than ‘things’
and promote non-empathetic
forms of living as adults.
AND
If we can fully control our love
life, will it impair our ability to
face hurdles in other areas of life?
Will a ‘I-get-whatever-I-want’ love
life make us weaker and more
prone to depression?
looked like a real human being. Indeed,
we may already be seeing the rise of “digi-
sexuals” who prefer cyber—and not
human—love and sex lives.
Is that good? David Levy, British AI and
robotics expert, thinks “sex robots will be
a great boon to human society”. His logic
is that the main reasons people fall in love
could equally apply to human-robot rela-
tionships. For instance, people tend to like
other people who are similar to them-
selves in one or several ways—education
level, attitudes, common interests. AI will
be able to simulate all of these characteris-
tics. Another common reason for falling in
love is knowing that one is liked by the
other person. It will be possible one day
for AI to simulate a liking, or a loving, for
the robot’s human partner—and to spark
the interest of the human in return. So
what’s the problem?
The problem, some would say, is that
Levy has broken love down to certain
boxes to be ticked and behavioural pat-
terns. This is a completely mechanistic
view of what it means to be human. But
that’s a debate that is unlikely to be ever
resolved. Levy also asks us to think of the
FRIDAY, 27 SEPTEMBER 2019
NEW DELHI 11
Companies are racing to create fully
functional sex robots or sexbots.
Sexbots are all female currently, but we
will almost certainly have male sexbots
in the not-so-distant future. GETTY IMAGES
consequences. “Mechanical dolls perpet-
THE FUTURE OF SEX
uate ideas that are harmful to society—
that sex is instrumental and not rela-
tional,” she told the website futureof-
sex.net. “If you keep sex outside of
reciprocity, you get rape and murder of
women and children.”
Levy and Richardson are at the two
extremes of the discourse, and limit them-
selves to the impact of technology on our
love and sex lives, but sex tech can perhaps
Some key predictions from ’The
impact other aspects too. If a person can
Future of Sex Report’ on humanity’s
erotic future. fully control his love life, will it impair his
By 2022: First dates in motion-capture ability to face hurdles in other areas of life?
virtual worlds will become popular The world demands humans to face chal-
By 2025: 3D-printed body parts of
lenges, obstacles and failures, and learn
from the experiences and be stronger.
your lover, enabled with touch
feedback, will add intense realism to Will a “I-get-whatever-I-want” love life
make us weaker in some way, less capable
long-distance sex
of dealing with setbacks, and more prone
By 2027: Brain-to-brain interfaces will
allow partners to stimulate each other
to reach orgasm directly
to life dissatisfaction and depression?
Some psychologists have begun raising
these fears.
By 2028: Over a quarter of young
people will have had a long-distance IN CONCLUSION
sexual experience
By 2033: Adult performers and some
B-list celebrities will sell robotic
I n December 2014, the writer Margaret
Atwood wrote an op-ed piece in The
New York Times on a robot-crowded
replicas of themselves designed for sex future, in which she mused about technol-
ogy and sex. “Will remote sex on demand
By 2045: One in 10 young adults will
have had sex with a humanoid robot change human relationships,” she asked.
“Will it change human nature? What is
Source: futureofsex.net
human nature, anyway? That’s one of the
PHOTOGRAPH BY GETTY IMAGES
questions our robots—both real and fic-
tional—have always prompted us to think
millions of people around the world who about. Every technology we develop is an
have no one to love and no one to love extension of one of our own senses or
them. They could be lonely for a number capabilities. It has always been that way.
of reasons, from physical ugliness to being The spear and the arrow extended the
painfully shy to a lack of social skills. For arm, the telescope extended the eye, and
these socially challenged people, Levy now (a) kissing device extends the mouth.
writes in a piece in The Mail On Sunday, Every technology we’ve ever made has
the question to ask is not also altered the way we
“Why is it better to love live. So how different
The question is not ‘Why is it will our lives be if the
or have sex with a robot
than with another better to love or have sex with future we choose is the
human?”, but “Is it bet- one with all these robots
ter to love or have sex a robot than with a human?’, in it?”
with a robot or to have but ‘Is it better to love or have Atwood, who has writ-
no love or sex at all?” ten several dystopian
One of the leading sex with a robot or to have no novels, and is also the
voices on the other side inventor of the LongPen,
of the debate is Kathleen love or sex at all?’ a remote signing device
Richardson, the British that allows a person to
founder of the Campaign Against Sex write in ink anywhere in the world via the
Robots. She argues that sexbots will internet and a robotic hand, did not
encourage us to regard real human beings answer the question. No one has the
as no more than “things”. Sex dolls, she answer. As she says: “What is human
says, are inspired by ways of relating that nature, anyway?” All we know is that sex
do not require empathy. By promoting technology could profoundly change it.
and cultivating these objects, we are in Sandipan Deb is a former editor of
effect promoting non-empathetic forms Financial Express, and founder-editor of
of living as adults. This could have dire Open and Swarajya magazines.
12 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI

THE
FUTURE
E-COMMERCE

OF

W H AT T H E PA S T D E C A D E
MEANS FOR FUTURE BUYERS
Future is in offering personalized, premium shopping experience from search to after-sales support

Kalyan Krishnamurthy users, and platforms will need to con- EQUAL THRUST ON FIRST MILE the value chain. There is a huge opportu-
tinuously evolve to cater to their AND LAST MILE nity that can be catalysed by further dou-
There is no vanity in
claiming that India is the
fastest growing market
needs differently. The United
Nations, earlier this year,
released the 26th revision of
W hile the first 10 years saw
most players in the ecosys-
tem invest extensively on the
bling down investments in R&D and tech-
nology.
A lot of emerging technologies are
for e-commerce. Grow- World Population Prospects, last mile to reach their con- knocking the door of e-commerce custom-
ing at an annual rate of and estimated that India sumers, there is now a very ers and sellers alike, the key is to see how we
51%, the highest in the will overtake China as the conscious effort to build a can convert insights into action.
world, the sector has most populous country robust environment and
propelled unforeseen by 2027—this is a win- value chain on first mile ENHANCED EXPERIENCE FOR
growth in avenues that perhaps several dow of demographic (sourcing from sellers) FUTURE ONLINE SHOPPERS
stakeholders in the ecosystem had not
envisioned. The past 10 years were a clear
testament to the fact that e-commerce as a
opportunity that no
one can deny.
India is expected to
connectivity. The shift
of e-commerce
towards m-com-
H aving established the industry in
India and having brought the first 100
million customers online, we are now
sector did not just spring up from the need witness a surge in the merce has further focused on bringing the next 200 million
to extend what retail was offering, but built consuming class that intensified the need into the fold and expanding the network
its own identity by solving problems for the presents a significant to solve logistics and into more disconnected areas of the coun-
aspirational Indian consumer, including headroom for further supply chain com- try, through the latest technology and our
from tier II and tier III cities. growth of e-com- plexities that might India-specific solutions.
The sector has transformed the way merce in India which, arise there on. To do The future of e-commerce is in offering
business is done in India. As per industry along with an expo- so, as a collective eco- customers a truly personalized and pre-
estimates, the Indian e-commerce market nential rise in per cap- system, we need to mium shopping experience in the entire
is expected to grow to $200 billion by 2026 ita e-commerce spend, work towards not only value chain, from search to after-sales sup-
from $38.5 billion will move the Indian acquiring more sellers port. Part of this is
in 2017. In the past e-commerce industry on a platform but also innovating in the
decade, we have towards an inflection build demand in high and voice and vernac-
seen the digital point. It is perhaps a good low volume markets and ular spaces, allow-
The Indian landscape being time to pause and reflect to transform brick-and-mortar India’s ing online shop-
e-commerce spearheaded by see what the sector has in store stores into distribution cen- internet pers to interact
platforms that for the next decade. tres by, say, partnering with kir- with the platform
market is grow beyond core anas. Following this, last-mile economy is in their own lan-
expected to silos and are able COLLECTIVE IMPACT ON attributes such as scale, reach, and expected to guages and ena-
to win with cus- ECOSYSTEM after sales experience will kick in. bling voice com-
grow to
$200 bn by
tomers holisti-
cally. Within that
landscape, con-
E commerce can potentially create
one million-plus jobs by 2022, while
actively supporting and contributing to 20
THE ROLE OF TECHNOLOGY AND
INNOVATION
double from
$125 bn as of
mands across lan-
guages. These
innovations will
2026 from
$38.5 bn in
sumer tech play-
ers have been
leading market
million-plus businesses run by small and
medium enterprises, entrepreneurs,
according to leading consultancy firms. In
C atering to the next 200 million will be
no easy task given their uniqueness.
The ecosystem and players in a market like
April 2017 to
$250 bn by
take e-commerce
deeper to more
customers.
2017, as per value creation. our business cycle, we have been witness- India need to bring about a renewed focus 2020, majorly We strongly
While the US and ing and been a catalyst to this aspect work- on how R&D can help solve for this. India believe that the
industry China were hav- ing closely with lakhs of seller partners and has already made rapid strides in this direc- backed by next phase of our
ing disproportion- creating avenues not only within the plat- tion. Diverse problems in governance, growth is rooted
estimates ate innovation form, but beyond it also, to make the eco- commerce, insurance, education, and e-commerce in loyalty, democ-
surplus; India was system more inclusive and beneficial. healthcare, etc., are being solved through ratizing e-com-
solving for here and now. Our partnership with National Skill innovation and technology and delivered merce and the country will continue to see
The growth of the industry has been Development Corp. (NSDC) is intended to via the internet. more innovations that stem from our deep
prompted by increasing internet and certify the supply chain workforce in all With the exponential advancements in understanding of Indian consumers. The
smartphone penetration. The ongoing dig- aspects of product delivery and customer technological trends, the face of e-com- biggest catalysts to grow the market to
ital transformation in the country is experience. merce will continue to evolve. Today, sell- reach the next 200 million customers is
expected to increase India’s total internet We envision to have a robust training ers on e-commerce platforms, for instance, accessibility, affordability and value. We
user base to 829 million by 2021 from programme along with Logistics Sector have access to real-time analytics software need to address all of these.
604.21 million as of December 2018, which Skill Council (LSC). As also cited by the to understand their online shoppers, which Realizing India’s potential for the sector
gives us a sense of the scale of inclusivity. NITI Aayog, if the nation must grow at 9%, enables them not only to provide personal- will require national, state, and local level
India’s internet economy as an extension is then e-commerce will have a major role to ized shopping experiences, but also use the collaboration of the ecosystem, ability to
expected to double from $125 billion as of play. Technology-enabled innovations, data and insights to predict trends and pre- adapt to the changes in the environment,
April 2017 to $250 billion by 2020, majorly such as digital payments, hyperlocal logis- pare for them. Every unique purchase and be effective and enabling, to make a bil-
backed by e-commerce. tics, analytics-driven customer engage- throws an enlightening customer journey lion dreams come true.
However, what is essential is that the ment and digital advertisements, not only that needs to be utilized to better inform
next 100-200 million users to come online create and fuel growth of sub-sectors, but the next sale. Smart predictive analysis will Kalyan Krishnamurthy is chief executive
will be very different from the current also enable overall ecosystem growth. JAYACHANDRAN/MINT enable merchants to effectively manage officer of Flipkart.

INTERVIEW | A M I T AG A RWA L

‘Tomorrow’s customers will push the limits on how tech should serve them’
Shrija Agrawal ever since. If you were to decode your technology should be serving them. In example so they can find what they’re look- instead of asking to keep their selection in
shrija.a@livemint.com experience into the good, bad, and the terms of India, I think the consumer would ing for, pay offline where the trust is higher our premises. And that was the whole proc-
MUMBAI ugly, what would that be? How do you enjoy level playing field. Mobile internet in and get the online convenience of delivery ess of Seller Flex and that innovation has
think about the consumer of the India is a tremendous leveller in a country at doorstep. become such a powerful driver of fast and

F
or Amazon Inc., known and feared for
its sheer scale, disruption and usher-
ing in the “everything store” phenom-
enon, understanding the pulse of consum-
ers comes naturally. Amit Agarwal, global
senior vice-president and country head,
Amazon India, says consumers across the
globe have three common needs—selec-
tion, low price, and fast and reliable
delivery. And these core needs will
not change in the long run.
Agarwal talks about inno-
vations from the Amazon
stable, of which Seller
Flex, Amazon Pay and I
Have Space are the
result of “listening to
customers” and
“inventing to address
their needs,” while
other more trans-
formative ones, such
as Echo and Fire-
stick, are the results
of “imagining the
impossible.” Edited
excerpts from an
interview:
It has been six years
since Amazon for-
mally entered India
and you have been
helming its operations
future?
One of the things that we firmly believe is,
instead of trying to predict how the future
would be different, we gain a lot of leverage
by trying to find how the future would
remain the same with time and with geo-
graphies. And at Amazon, we had the con-
viction before we came to India that those
three pillars of experience are primarily
large selection, competitive prices, and fast
and reliable delivery. We haven’t really
found a geography or a customer set or even
across the last 20 plus years that I’ve been at
Amazon, that customers have said I wish
Amazon gave me access to fewer products,
at higher prices, and slower delivery. The
good part is that India is no different from
the rest of the world in these three impor-
tant dimensions.
Customers in India, like customers glo-
bally, care about selection, low price, and
fast and reliable delivery as much as any
other customer in the world does, and that
was great for us because all the investments
we have made over several years can auto-
matically be used to serve the customer in
India.
At the same time, I can guarantee you that
the consumer of the future, just like the con-
sumer of today, would be divinely discon-
tent. They would be very unhappy, they
would always ask for better experience, they
would push the boundaries in terms of how
with significant heterogeneity in pretty You can actually take your Amazon app reliable delivery in India that we have actu-
much every dimension. If you think about inside certain stores, scan certain QR codes ally exported it to other countries around
income levels, social structures, languages, and get access to Amazon customer reviews the world. So, that’s an example of listening
cultures, the mobile internet really levels and Amazon images and Amazon videos to to customers.
the playing field both for sellers and con- enhance your shopping experience and buy Big needle-movers require you to envi-
sumers. the product offline. One of the biggest sion and imagine the impossible that even
With Go stores opening in cities like learnings I have had in India is that the customers cannot talk to you about and that
San Francisco plus Amazon’s purchase incumbent ecosystem that exists in the is this word that Jeff uses in his shareholder
of Whole Foods last year, is the future country’s neighbourhood for decades is so letter which is ‘wandering’. Look at AWS
well-positioned in serving customers, and Echo.
that you are better off partnering with Customers didn’t tell us they need a cylin-
Three principles to sum them than to go against them. drical device in their kitchen that they can
up culture of innovation What is the culture of innovation talk to. There are places that we are wander-
at Amazon? Can you give us exam- ing and we like it. Another example of wan-
at Amazon—obsess on ples of some key big ideas that you dering is I Have Space.
And in case of India, we are going a step
customers, invent on their areI think working on, especially locally?
of three principles to sum up further.
behalf, think long-term. our culture of innovation at Amazon— We are working very hard because the
obsess on customers, invent on their landscape is so complex in language. You
behalf, and think long term. will see more people use two languages in
Example of things that we’re doing the same statement. Natural language
looking more hybrid for the world’s in India by listening to customers are inno- understanding (and) speech recognition are
largest retailer? vations such as Seller Flex. We were listen- significantly more complex, which require
In some cases, we have tried to use the off- ing to sellers as customers, and they also deep learning to figure out how to serve cus-
line convenience to serve an online cus- told us that they are businesses that have tomers better.
tomer better. been operating for generations, have low Today, Echo in India can do lot of com-
Amazon Easy is a good example. They cost real estate where they keep their own plex stuff, you can make two languages
trust the neighbourhood store person more warehouses in and it would be great for work, to say you are running out of atta. You
than just shopping online and we are lever- them to figure out how they could further don’t have to say wheat flour.
aging the trust of that person to help the lower their cost of operations by leveraging We have put artificial intelligence now in
customer use the online convenience of them. millions of households in India through
infinite selection but bring that selection So, it gave us this idea that why not take your Fire Stick that you can talk to, look at
inside the store through a terminal as an our fulfilment software to their premises your channels and play a movie.
 EXCLUSIVE FROM
FRIDAY, 27 SEPTEMBER 2019
NEW DELHI 13

Citizens’ monetary policy committee sees a

25-40 basis points interest rate cut on 4 Oct
ANIRUDDHA CHOWDHURY/MINT RAMESH PATHANIA/MINT
Latha Venkatesh
CNBC-TV18
Tax cuts clearly

P
ronab Sen, former chief statisti- make India much
cian of India; Samiran Chakra-
borty, chief India economist, Cit- more competitive
ibank; Soumya Kanti Ghosh, structurally at a time
group chief economic adviser, when countries are
SBI; Sajjid Chinoy, chief India economist,
JPMorgan, and Sonal Varma, managing vying for businesses
director and chief India economist, Nom- that are leaving China
ura, discuss the options before the mone-
tary policy committee (MPC) ahead of its 4 Sajjid Chinoy
Chief India Economist, JPMorgan
October meeting. Edited excerpts from a
panel discussion:
Now that there has been this giant tax
cut, maybe the most reformist meas-
ure since the 1997 dream budget or
maybe even 1991 budget, how does this
change the terrain for the MPC?
Sen: What it has done is to create a cer-
tain amount of uncertainty for the mone-
tary policy vehicles and so the sort of things
we were thinking about prior to this hap-
pening which is that probably we would be
having much more ambitious rate cuts
going forward, I think a lot of that will have
to be put on hold. The Reserve Bank of
India (RBI) and the MPC will have to see
how the fiscal side plays out over the next
couple of quarters.
You have anyways been worried about
the extra budgetary borrowing of the
government. With this tax cut, does it MINT
reduce the space for MPC you think? strike is how much liquidity is enough to Sen: Really the big question goes back to
Chinoy: It does. I can understand why get transmission. We have all been the state of the fisc. We have all been con-
there was a fiscal response because if we see bemoaning the lack of transmission. cerned about how the budget numbers
around the world, beyond a point mone- So, the last thing you want to do is just don’t seem to stack up and what the conse-
tary policy efficacy gets impaired. when transmission is picking up late into quences would be if the revenue side
There is a lot of risk aversion among eco- the cycle because non-food credit momen- wasn’t matching up to what had been bud-
nomic agents, households, financial inter- tum is ticked down, you want to withdraw geted, so this was already under discussion.
mediaries. So there is a limit as to how liquidity. Now you have got another revenue impact
much of the counter-cyclical heavy lifting However, the balance is going to be that coming from the corporate tax cut. The
monetary policy could do. when the cycle turns, that liquidity should question to my mind and this is where the
I think the tax cuts clearly structurally be appropriately calibrated. I do not think uncertainty is how is the finance ministry
makes India much more competitive at a the RBI should tie its hands at this point in going to react going forward. Will they
time when every country in the region is time with any number or range, but pro- actually recognise the fact that there is hole
vying for those businesses that are leaving vide as much liquidity as is necessary to get in the budget? Or will they try to paper it
China to attract them to be part of the sup- transmission and when the cycle turns, cal- over by compressing expenditures? They
ply chain. So medium-term I think it is ibrate appropriately. could go either way.
clearly very positive. We will have to man- I will just make a couple of quick points. If it is the later, then what you are proba-
age the fiscal fallout in the near-term care- I think I am little bit sanguine on inflation. bly looking at is a contractionary effect,
fully. Frontloading asset sales especially The core numbers are deceptively high. which will be much larger than expansion
since market sentiment has improved, Year-on-year (YoY) numbers are very slug- that would come from the corporate rate
would be a good idea to offset some of the gish. If you look at the underlying momen- cut. So the problem for the MPC really is to
benefit. tum, it is very low. be able to figure out what is it that the
The RBI dividend will also help at the So, do not be surprised in the next couple finance ministry is going to be doing that is
margin but broadly at least over the next (Clockwise from top-right) Pronab Sen, former chief statistician of India; Soumya Kanti Ghosh, group chief economic adviser, SBI; of months that core inflation dips below 4% the imponderable.
few quarters, I agree that fiscal is doing Sonal Varma, managing director and chief India economist, Nomura; and Samiran Chakraborty, chief India economist, Citibank. and by the first quarter of next year we will As far as inflation and growth are con-
some of the hard work now and though that have the strange phenomenon where after cerned both are weak, in my estimate they
impact will take time on growth and activ- leverage ratio is still among the lowest in sees a rise in inflation? lized and food inflation genuinely ris- about 5 years food and core inflation cross, are both going to weaken. On inflation I
ity since the translation from corporate tax the world at 12% of gross domestic product Varma: The MPC has to be forward ing is worrying; 7% for urban food where food inflation accelerates higher tend to agree it is going to weaken and
cuts to aggregate demand tends to be little (GDP), much lower than comparable coun- looking and the growth profile, if we com- inflation in the last consumer price than core. growth I don’t think is going to cross 6%
bit more lagged that monetary policy in the tries than even China. pare where we are relative to the August index (CPI). Do you think they will If we believe growth is going to be rela- this year. So both are weak and I don’t think
long run may have to do less work but in the My sense is that a counter-cyclical policy MPC meet, the global growth dynamics are change inflation numbers, do you tively weak for the next three to four there is any doubt there, the doubt of
near-term given growth inflation dynamics response was the need of the hour. So from much worse. think they need to change? months, what you will see is any pick up in course is the fiscal side.
both domestically and globally, there is still that point of view, the policies that the gov- Domestically, the second quarter num- Ghosh: Yes, there has been an uptick in food and that is transitory because a lot of This is a tricky problem, this has nothing
some work that the RBI will need to do. ernment has taken are good enough bers are looking a bit worse, at least as far as the food inflation if you look into the data the vegetable price increases because of to do with theory. It doesn’t have to do with
So you don’t think this space is con- because it will pump up investment the high frequency data is concerned. and primarily the gap between the rural unseasonal rainfall is kind of offset by core the behaviour of investors or consumers. It
strained immediately? expenditure and may not add to immediate The corporate tax cut, the assessment, at food CPI and the urban food CPI that has inflation. Even if you look at global devel- has to do with behaviour of government. In
Chinoy: I think the terminal rate that inflationary risk because this will not go least our assessment, is it leads to better widened and that is primarily because of opments, things are so weak right now that this kind of a situation what should the
the MPC will look at may change because into the hands of the consumer. profits, but the growth multiplier is going the seasonal uptick in the vegetable infla- I would not worry too much about inflation MPC do? It really becomes a take on what
one year out you would want to adjust your So possibly the RBI will continue to cut to be fairly low and largely gets offset by the tion. All other things are more or less picking up at this point in the cycle. the government will do and I would have
growth and inflation forecasts but I don’t rates but beyond a point, it may not be that downside risks that have opened up. So, in steady. Strangely for bond market transmission, felt much happier if there already were dis-
think that takes away the space to act efficient as we may be expecting. fact, if anything, RBI still needs to signifi- However, regarding the inflation fore- less is more. Part of the reason why we cussions between the RBI and the govern-
immediately. I will give you one statistic. What is the point of rate cuts 25 or 40 cantly downgrade its growth projection. cast, our full year average is 3.4% and we see never got more transmission after August ment as to what kind of a stance the govern-
Over the first eight months of 2019, core or 50 if you are going to continue to see However, on inflation, I would defer. In no reason to change that because one fac- is bond markets thought that the 35 basis ment would take going forward but I don’t
inflation momentum has averaged less your 10-year at 6.7%? the last two to three months, we have seen tor that is playing in the background is pro- points meant there was less space for more believe such a discussion has happened yet.
than 3%. This was 6% in 2018, the August Chakraborty: I think the MPC at this some stabilization in core momentum and curement. If you actually look into the pro- cut. We hope the governor will be the
number was month-on-month zero. So it moment has two different challenges apart as far as food inflation is concerned, the curement of food grains number, this is So, in a strange way, if the RBI does less, interlocutor and tell the MPC what the
tells us output gaps have opened up, pric- from the one that we have already dis- vegetable increase of course is more sea- running lower than last level. but signals there is space for more, you end government’s plans are. Do you think
ing power is weak and, therefore, there is cussed about assessing the impact of the sonal and transitory, but some of the pro- Given the fact that we had a bumper up getting more bond market transmission RBI can also go on doing OMO pur-
still some work that monetary policy will corporate tax cut. tein food items are seeing a higher infla- rainfall, even the spatial distribution has than if you frontload rate cuts and the chases, it has tried everything for
have to do. One is why the transmission is so weak tion. not been that satisfactory. expectation is there is less that follows. transmission and the 10-year is still
What else should the monetary policy and not just on bond yields, if you have seen In fact, relative to the RBI’s inflation pro- Last year, when the government Do you think the RBI or the MPC has a standing at 6.7%, it may well do so after
consider when it is debating on the the weighted average lending rates, the last jection, our assessment is inflation is actu- announced a procurement bump up, the lot of space even from current levels a rate cut if any on 4 October. Is there
action? data point for July it has gone up from June ally running about 0.2-0.4 percentage street was expecting a 70 basis points jump given the kind of growth numbers? that much space for OMO purchases?
Ghosh: In my sense, to rather than coming down. points higher. So, year ahead, inflation in food inflation. However, ultimately if Even your number is Chinoy: Unlike last year not
start with I am now more wor- Govt’s counter- If you look at the reduction numbers now are looking close to 4%. So, you look into the entire tracker of pass standing at 6% for growth RBI should really this year. Last year was a
ried about the states because cyclical policy in marginal cost of funds there is more downside risk to growth, but through of minimum support price (MSP), and if inflation is 3.4%, provide as much clear case because liquidity
if you pull out the data of 19 response will based lending rate (MCLR) in inflation is now tracking close to 4% and fis- from last July till August, the pass through where are we at 5.4% in liquidity as was in deficit, here if you look
states, there has been a signifi- pump up August, that has also been cal response has come in. has been a negative 26 basis points. terms of repo? Is there a necessary to get at where core liquidity is
cant competition, capital
investment lower than 35 bps cut that the Essentially those are the factors that the The primary reason was that procure- substantial space, like a transmission today, liquidity will be in
expenditure over the last two RBI has done. So the MPC will MPC needs to balance. On the whole, it ment was very weak. If that is continued, I 100 basis points from going. And when healthy surplus all the way till
years and if you again take out expenditure and have to see whether this 1 really calls for frontloading whatever eas- think that will have a sobering impact on here on? the cycle turns, March, so there is not much
the states that were building won’t add to October implementation of ing space is there and then wait and watch food inflation. I will not be surprised if Varma: The concept of calibrate space, you could have the
up for example, Kerala after inflationary risk, the external benchmarking to see the impact of the combined macro November and December inflation num- space can be debated. World- appropriately, occasional tactical OMO but
the floods, the number is says Ghosh improves the situation or not. policy stimulus that has been implemented bers particularly show a significant down- wide you have negative inter- says Chinoy nothing close to the order of
lower than 5%. In reality, if just the 100 bps in India. turn because of this impact. est rates in many countries. magnitude we saw last year.
So 5% increase in capital cut gets fully transmitted in How bad is growth? We had some So your terminal number for FY20 is So, it is ultimately a question Will there be a a cut and
expenditure because of this fallout is a little the system that is a lot of monetary easing numbers on the street that were 5.7%, 3.4%? of the return you get from incremental eas- how much or will there be a pause on
bit detrimental in the interest of the state. in some sense. So that brings to the second RBI is sitting at 6.9%. What should be Ghosh: This is the average and we still ing versus the risk you expose the economy 4 October. How much of rate cut space
That is point number one. point that while assessing how much more a reasonable growth estimate? believe that there could be a little bit of to from that incremental easing. I think is there in this entire cycle including
Regarding what the RBI can do, yes the they can cut, will they be more proactive or Chakraborty: We have a 6% gross downward bias built into it even after con- India has seen substantial policy easing, the what can happen on 4 October?
problem is that the RBI has been facing the reactive. domestic product (GDP) growth target for sidering. Our growth forecast is at 6.1% with growth numbers at this stage are still con- Chakraborty: 25 basis points cut.
growth conundrums and the inflation The current situation seems to be that the full year. However, that assumes that a little bit of downward bias. However, as of cerning which is why there is a case for fur- Ghosh: Greater than or equal to 25 basis
conundrums but in my sense if I have to the MPC is considering less the theoretical sequentially every quarter the momentum now, we will stick to that number of infla- ther easing. However, given the fiscal stim- points. I should be happy if it is 40 basis
give you some numbers and look into the constructs of real policy rate and is more will have to move up. So, it already bakes in tion particularly; growth could be a little bit ulus, monetary stimulus, the liquidity eas- points but the terminal should be at 5%.
household sector leverage, there are two looking at the current growth inflation sort of a lagged effect of the stimulus that on the downside. So, 6.1% and 3.4%. ing we have had, we need to also allow the Chinoy: 25 basis points cut.
interesting things that come out. dynamics whether that is giving any space we have seen both from the monetary and Your inflation is also 3.4%? cuts and stimulus to percolate to the econ- Varma: It should be frontloaded so 40
In 2005 over 2007, the total household to them or not. But at some point of time the fiscal side. So, in that sense, one can say Chakraborty: Yes, it is closer to 3.4%, omy. basis points cut.
leverage jumped from ₹1.2 trillion to they will have to think that there is a lead that there is a bit of optimism built into that but I completely agree with Sonal that the It may not show up necessarily in short Sen: 25 basis points cut.
₹2.8trillion. Two successive years of 50% lag in monetary policy and there is a possi- forecast itself. volatile oil and food prices, they are going term growth numbers. I do not think that What is the total amount of space
growth then it collapsed. bility that with a lag, the transmission of the Now, to what extent RBI will correct its to make this forecast a bit tricky going for- necessarily means we need to panic and available as you see it today in this rate
If you now fast forward to the current past rate cuts will also happen in the sys- forecast from this 6.9% that is there is ward. keep reacting to every data point. So, is cycle?
year, the household leverage has increased tem. slightly difficult to say because they will Now to liquidity. That is the other there a substantial room for rate cut? I Chakraborty: There is space for 50
from ₹3.8trillion to ₹7.4 trillion last year So what will be the signals to judge that also have to bake in the stimulus into their thing that has been unleashed and it is think that is a theoretical question. I think basis points cut including the 25 basis, so
and this year the number could actually be we are not over stimulating the system both forecast. very effective from May. Should the in terms of what the MPC should do, is to space for another 25 bps.
closer to Rs9.5trillion. through monetary side as well as fiscal Our suspicion is that this year’s number MPC ponder over it? In 2009, 2010, deliver the space that is there and wait to Ghosh: The total space is 50 bps, includ-
So that makes an average growth of 22% side? That is the trigger point, which will be will be kept closer to the 6% mark, but for and 2011, this ₹2 trillion that was lying see the impact of the easing that has been ing this 40 bps.
last year, 58% in FY19. So overleveraged. important to talk about the terminal rate. next year, because this is the first time they around in the system was perhaps the delivered. Chinoy: We think the terminal rate is
Against this background, I think the effi- Till that space is there with slow growth, will put the FY21 growth forecast also out, reason why we harvested double digit Is there any other issue that MPC closer to 5% after the fiscal action. So it is 40
cacy of the monetary policy even if you low inflation, I think the MPC can still go and the FY21 growth forecast can show a inflation for the following four years. should ponder about that the Citizens basis points, including the October cut.
continue cutting rates, you may have to cut ahead with a bit of cut but we will have to be much sharper recovery. This is not a What should the MPC think about MPC has not yet discussed and do you Varma: The total space is 5% terminal
rates because the inflation numbers will very wary of the turning point. v-shaped recovery, but more a back ended liquidity? think that inflation and growth at the rate.
justify cut rates but I am not sure how much Can you go on cutting till these growth recovery that will be there in the forecast. Chinoy: There is a report that is due out moment are so weak that we can con- Sen: The total space is for 50 bps cut,
that would help apart from a debt build up. rates do not show an upturn and there- What are your inflation forecasts? The I think anytime and so we will not front run tinue with fiscal easing, monetary eas- including this October cut.
The good thing is that India’s household fore the MPC stops cutting only after it issue of the core having being stabi- that. I think the balance that you have to ing and liquidity easing? feedback@livemint.com
14 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI VIEWS

OUR VIEW MY VIEW | FARM TRUTHS

REUTERS

Rural India’s bane: from policy

paralysis to a policy vacuum
Apathy for rural India is the result of a growth model that gives corporate interests higher priority

macro indicators, including wage and
income growth estimates, have sug-
gested this for quite some time. Even
private sector data has pointed towards
a demand crisis. This was precipitated
by a collapse of the rural economy,
which has seen the worst distress in
recent years with both incomes and
consumption declining. But the numer-
HIMANSHU ous announcements made by the
is associate professor at Jawaharlal Nehru finance minister did not feature even a
University and visiting fellow at the Centre single step aimed at boosting the rural
de Sciences Humaines, New Delhi economy. It did not get even a custom-
ary mention, as if the rural economy had
tures that prevailed in the 1980s. How-
ever, the nature of agriculture and the
rural non-farm economy has changed
dramatically in the last three decades.
While these have shown dynamism,
increased monetization and integration
with the broader economy has compli-
cated matters.
The dominance of the “reform”-led
political economy has meant that any
effort to boost growth is aimed at
appeasing corporate India and the
middle class. As a result, the only metric
of gauging the “reform” friendliness of a

A game of chicken
no role in the economic slowdown, or, government is the impact it has on
even if it did, it was not significant corporate profits, as the episode of the

T
he last few weeks have seen sev- enough to help in a revival. latest stimulus shows. It is ironic that
eral steps from the finance minis- The indifference towards the rural even at a time when the slowdown has
ter to revive the Indian economy. economy is not due to ignorance. been caused by declining incomes

à la Kiev in the US These range from sectoral interven-

tions for automobiles and housing to
increased credit access. The govern-
ment also announced the merger of sev-
Rather, it is part of a larger political
economy framework that successive
governments have followed after the
1991 economic reforms. As it remains
and consumption in rural areas, the
response is to aid companies rather
than address the rural crisis. None of
these steps will have any impact on
eral public sector banks. The corporate important for political mobilization, aggregate demand. These are also likely
tax rate has also been slashed. For com- governments only tend to remember it to contribute to fiscal stress. However,
Could the Ukraine scandal be Trump’s Watergate? Unlikely. But impeachment proceedings panies that choose to forgo all exemp- just before elections to patronize voters the need of the hour is to revive demand
tions, this has been lowered from 30% through loan waivers, cash transfers or through increased government spend-
against Donald Trump have finally thrown some fat into the fire of the White House race to 22%, which together with surcharge increased subsidies. There has hardly ing. In the absence of a sustained rise in
and cess would amount to an effective been an attempt to examine and correct demand, the benefits of the tax break
rate of 25.2%. For new companies, the imbalances in input and output prices, will only be temporary. Without strong
rate has been kept at 15%. Understanda- market structures, access to credit and demand, the tax giveaway is unlikely to

P
repare for a crackle-and-burn cam-
paign in the US as Democratic Party
leaders try to dislodge Republican
President Donald Trump from
the White House next year. For
months, Democrats have been
hunting for a chance to impeach Trump, and
now Nancy Pelosi, the speaker of the House of
Representatives, has finally gone for it. While
this Democrat-majority chamber will likely
approve the move, the Republican-dominated
Senate, where a two-thirds vote can pass such a
motion, is sure to block any effort to oust the
President (unless, of course, there’s a rebellion
within his own party). The launch of an
impeachment inquiry against Trump is clearly
a political gambit. While the opposition runs
the risk of Trump emerging even stronger
from it, Democrats hope to wreck his re-elec-
tion bid in 2020. Their calculus appears to
have been altered by news of a phone call on 25
July between Trump and the newly elected
Ukrainian President Volodymyr Zelensky, in
which the US leader is alleged to have asked
ner involves the role that Biden’s son, Hunter bly, stock markets are cheering, which other measures of support from the lead to an increase in investment.
Biden, might have played some years ago as a may give the impression that the econ- government, most of which are stuck in This also raises an important question
omy is back on track. the same policy and economic struc- on the policy framework of the govern-
director of a gas company in Ukraine. If any So many steps within two months of ment. It is difficult to believe that the
murky deal can be traced to him, no proof of it the budget points to a late government government is not aware of the reasons
has surfaced so far. What political observers realization that not all is well in the of the slowdown or its extent. However,
would rather have details of, going by US economy. This dramatic shift from the QUICK READ it continues to operate in a policy frame-
media reports, is why the Trump administra- triumphalism seen in the budget makes work that shows a sparse understanding
it clear that the government was caught The indifference of successive of the troubles of the economy. Unlike
tion stalled Kiev’s aid. Going by the transcript, napping while the economy slowed. governments since 1991 to India’s the previous United Progressive Alli-
the aid itself wasn’t discussed over the phone, Most analysts pointed out the structural rural economy could be blamed ance government, which was character-
but Zelensky’s query on US weaponry for weaknesses of the economy, but these on a policy framework that ized by policy paralysis in its second
Ukraine appears to have been met by Trump were ignored in the euphoria of the confuses what’s good for the term, this government seems to be
with an abrupt demand for a probe—to get to election victory in May. What is worry- corporate world with reform. operating in something of a policy vac-
ing is that despite the recognition that uum. It appears to have the same pre-
the bottom of rumoured Ukrainian (rather the slowdown is far more serious than New Delhi’s tax stimulus is scription for every ailment. Like a
than Russian) attempts to meddle in the 2016 thought, the government has no clue of misdirected, since the slowdown momentary stimulant, this may give the
US election. Whatever the explanations what caused it or what needs to be done. is due to a collapse in demand. illusion of a recovery, but it only delays
offered, foreign relations of this nature can It is now established that the slow- The measures may temporarily treatment of the disease. That’s some-
hardly escape scrutiny. down is a result of a collapse in demand stimulate the economy, but thing the Indian economy cannot afford
caused by a decline in incomes. Most won’t fix underlying problems. at this juncture.
Whether any of this will drag Trump down is
unclear. His Twitter response suggests he is
confident of his support base and his release of
the controversial call’s transcript appears to
have lent some credibility to his nothing-to-
hide posture, at least among millions of his
supporters. Ever since he assumed office, he www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Chandigarh*, Pune* Monday, September 28, 2009 Vol.3 No.231 Rs. 3.00 24 PAGES

the latter to dig up dirt on the son of his poten- has flayed his opponents for having it in for Biman Bose on
POLITICS:

Impeachment is not
CPM’s return to basics >4
WSJ: Chess wars—old kings meet

tial 2020 Democratic rival Joe Biden. If that him simply because he’s an outsider to Wash- EXCLUSIVE PARTNER
again, but the game has changed >19
MARK TO MARKET: Bond defaults
begin to emerge >14

doesn’t sound scandalous enough, there is also ington trying to overthrow an effete political SENSEX 16,693 ®

What’s inside
NIFTY 4,958.95 ® DOLLAR Rs47.99 ®

EQUITY INFUSION
EURO Rs70.12 ®

OUTSOURCING MANAGEMENT

BSNL to farm out

GOLD Rs15,555 ® OIL $65.11 ®

just another form of

Nacil to get
the matter of a $400-million aid package for culture. As his opponents fear, he could revive PowerGrid plans to seek an additional loan of $1.5 billion
(Rs7,200 crore) from the World Bank to meet its estimat-
ed capital expenditure requirements of Rs85,000 crore in
the 12th Plan period. This is over and above the $3.1 bil-
lion in loans already approved by the multilateral funding
agency for the state-run power transmission firm.
LEADING THE NEWS MONEY MATTERS
>P5
Rs2,000 cr
tower, fibre upkeep
B Y S HAUVIK G HOSH
shauvik.g@livemint.com
·························
NEW DELHI
HARIKRISHNA KATRAGADDA/MINT

political combat; it’s an

Kiev being held back just a week before the that theme, mount a loud counter-attack, and S
The Centre and Gilles Magnan of audit, tax tate-controlled phone

by January
states have to and advisory service firm company Bharat Sanchar

emergency measure
move swiftly Mazars says the Indian in- Nigam Ltd (BSNL) plans to
and pragmati- surance market is not ma- outsource management and
cally to ensure ture, but will grow very fast maintenance of so-called pas-
that the GST in the future. >P14 sive infrastructure such as its
dream does not sour, says *** optical fibre cable network and
Anil Padmanabhan. >P4 Tamal Bandyopadhyay telecom towers, opening up a
*** analyses the It will be the first of AIR SUPPORT potentially lucrative business

conversation. romp home to yet another victory next year.

Countries such as India
which are opposed to
global emission cap norms
may prove hurdles at a
overseas busi-
ness model,
three govt tranches over opportunity for companies
such as Nokia Siemens Net-
THE NEWS
marketing strat- three years; sovereign Union govt will give Rs2,000 crore to works.
egies and offer- guarantee may be given Nacil, which runs Air India, in the BSNL plans to seek expres-

meant to save the

two-week meet in Bangkok ings of Indian first tranche of an equity infusion by sions of interest (EoIs) shortly
beginning Monday. >P5 banks. >P6 to restructure loans December/January from companies that manage
THE BACKGROUND telecom networks, chairman Lowering costs: Kuldeep Goyal of
B Y P .R . S ANJAI In July, the government had offered to and managing director Kul- BSNL said the telco will soon seek
deep Goyal said. Seeking EoIs expressions of interest from firms.

Trump has denied any abuse of his office. The Democrats, on the other hand, seem to be
pr.sanjai@livemint.com support the loss-making airline with
························· conditional equity infusion or soft marks the first step in the pro-
MUMBAI loans so it could continue flying cess of awarding contracts. The outsourcing deal could

D ebt-ridden National
Aviation Co. of India
Ltd, or Nacil, which
runs Air India, will get Rs2,000
THE IMPLICATION
The equity infusion will ensure a
better debt-equity ratio for Nacil so it
can raise loans at interest rates of
The company has a presence
in 22 telecom operating areas
in the country. BSNL plans to
farm out the infrastructure
mean a business opportunity
worth well above $1 billion for
network management firms
such as Nokia Siemens Net-

democratic foundation
crore in the first tranche of an 7-8% as against the 12% that it management and mainte- works, Ericsson AB and Alcatel
equity infusion from the gov- will otherwise have to pay nance work through separate Lucent SA that manage the
CORPORATE NEWS ECONOMY & POLITICS

The transcript of the call was released by his counting on the electorate’s discernment of
The Planning Commission
is considering setting up
more regional boards along
the lines of the National
Capital Region Planning
Board, says Arun Maira. >P6
Real estate developers are ***
now employing strategies China’s succession politics
ernment by December or early
January, two civil aviation
ministry officials said.
The government is also con-
sidering giving Nacil a sover-
eign guarantee to restructure
Rs16,000 crore of working cap-
ital loans to help it save at least
Rs500 crore, one of the officials
soft loans so it could continue
flying and add to its fleet and
can compete with rivals at
home and abroad.
“We are talking to the fi-
nance ministry to extend a sov-
ereign guarantee that will help
contracts, Goyal said in an in-
terview.
BSNL will join private sector
rivals such as Bharti Airtel Ltd
that have outsourced large
parts of their operations, in-
cluding infrastructure and net-
work management and main-
tenance, in an attempt to lower
networks of Bharti Airtel and
Reliance Communications Ltd,
analysts say.
BSNL has the largest optical
fibre cable network in the
country, comprising at least
600,000 route kilometres cov-
ering all state capitals and dis-
trict headquarters. The firm

administration, but it isn’t verbatim and came how presidential authority ought to be used in
such as offering a range of
formats, including low-cost
housing, and assessing
consumer response to as-
certain demand before
completing a project. >P7
***
Sanjay Kirloskar will take a
firmer grip on Kirloskar
are not growing much more
transparent with the pas-
sage of time. Vice-president
Xi Jinping, one of the front-
runners to succeed Hu Jin-
tao as president, was re-
cently passed over for ap-
pointment to the Central
Military Commission. >P20
said.
The government, which has
previously extended the na-
tional carrier sovereign guar-
antees on loans to buy aircraft,
had in July offered to support
the loss-making airline with
conditional equity infusion or
recast some high-cost working
capital loans of Air India,” the
official said. “We are moving a
proposal to the cabinet in con-
sultation with (the) finance
ministry for getting a sovereign
TURN TO PAGE 3®
costs in a market where the
average revenue per user, or
Arpu, is well below $7 (Rs336)
a month, half of what it is in
developed countries, as com-
petition forces telecom com-
panies to cut tariffs and boost
market share.
on which all other
also operates around 42,000
telecom towers.
In terms of size, BSNL’s opti-
cal fibre cable network out-
strips Bharti Airtel’s and Reli-
ance Communications’ com-
TURN TO PAGE 3®

only after a whistle-blower sought to expose international affairs. For them, it’s about the
Brothers Ltd as part of a re-
structuring that took place VIEWS
GREEN REVOLUTION
IT consulting

with a transfer of shares
last week on BSE. >P4
THE WALL STREET JOURNAL
Leaders at the G-20 summit
agreed to toughen regula-
tion of global banks, but
something amiss in his dealings with Ukraine. constitution. Even if the American impeach-
some key issues may take
months to resolve. >P17
politics unfold.
S. Narayan says In-
dia had little to con-
tribute at the G-20
meet in Pittsburgh How Borlaug’s dwarfs came to biz yet to
on the four principal
make impact
issues, including
tighter fiscal regula-
stand tall in India’s agronomy
tion and protec-
tionism. >P22 MS SWAMINATHAN RESEARCH FOUNDATION B Y V ENKATESHA B ABU
B Y S AMANTH S UBRAMANIAN venkatesha.b@livemint.com
samanth.s@livemint.com ·························
························· BANGALORE

QUICK EDIT
NEW DELHI

N othing distinguishes this

parcel of west Delhi soil
n May, when Wipro Ltd won
a $500 million (Rs2,400
crore) strategic outsourcing
I
GM and Indian innovation from any of the other 600-odd contract from mobile-phone

The White House’s defence is that no coercion ment process leads nowhere, now that the
acres of cultivable land within services firm Unitech Wireless
the Indian Agricultural Re- Ltd, very few people knew

A s the global economy

sputters to a start, firms
are keen on breaking into
since 2001, according to the
Associated Press, a humble
slice of India’s auto market.
search Institute (IARI). It sits
under a test crop of cotton in a
corner of IARI’s MB3 sector,
about the key role played by
the technology firm’s consult-
ing arm in helping it clinch the
comparatively high-growth This newspaper commented narrow roads on two borders deal.

LAURENCE H. TRIBE
markets such as India. Tata on a recent Harvard Business and a tube well bristling on Competing against the
Motors was an innovator on Review paper co-authored by one frontier. There isn’t even a might of International Busi-
cost with the Nano, and now it General Electric CEO Jeff signboard identifying it as ness Machines Corp. (IBM),

took place and that the US has a right to probe Democrats—who are yet to pick a candidate—
seems Bangalore-based Reva
Electric Car Co. may become a
prominent innovator in
technology with its electric
cars.
Last week, General Motors
(GM) announced a tie-up with
Reva to bring cheap electric
cars to Indian roads by 2010.
Immelt on “reverse
innovation”—bringing ideas
from emerging markets to
more established ones.
GM could well be doing
this, gambling on a start-up.
India’s role in innovation isn’t
new, but it says a lot that Reva
is backed by one of Detroit’s
what it is: the plot of land
where the first trials of Nor-
man Borlaug’s dwarf-wheat
seeds were planted, the plot of
land where the Green Revolu-
tion began.
Borlaug, the Nobel-winning
food scientist who died on 12
September at the age of 95, had
Wipro Consulting Services
provided the foot in the door
Two pioneers: M.S. Swaminathan (left) and Norman Borlaug in the for India’s third largest com-
fields at the Indian Agricultural Research Institute in 1965. puter services provider to win
the contract.
destructive, but that appeared an agronomists had wrestled “We were able to bag the
at the time ideal for solving the with what they like to call “the deal because of the initial work
developing world’s growing architecture of our wheat”. Fed done by the consulting divi-
hunger. His solutions were de- with newly improved quanti- sion which made Unitech un-

corruption overseas. The case that the US
have decided to go all out against Trump,
It’s too early to say what GM’s most stalwart auto makers. worked since 1944 on variously veloped for Mexico, but their ties of fertilizer and water, and derstand the value we could
playbook holds. Reva has put Maybe others will look to engineered, richly productive grandest theatre of operations freighted with heavier grain, bring to the table,” says Anur-
out at least 3,000 electric cars India for more innovation. strains of wheat—an agricul- would be India, and they ar- the traditional tall, slender ag Srivastava, vice-president,
tural philosophy that would rived here via IARI.
Mint is also available for Rs5.50 with Hindustan Times under a combo offer later be decried as ecologically For much of the 1950s, Indi- TURN TO PAGE 3® TURN TO PAGE 2®

President wanted to place under Kiev’s scan- expect fire and brimstone along the trail.

MY VIEW | LEARNING 4.0

Sports serve as a laboratory for us to learn about life

This in itself is a good thing. But there is a
KAPIL VISWANATHAN more substantial role that sports must play
in educational institutions. I have invited
Viswanathan Anand, one of the most
accomplished chess players in history, to
share his views with me in this column.
an emotional oversight or plain physical Anand believes that pressure goes away the faculty positions for accomplished sports-
fatigue. A good response to failure is not to moment a game begins, because you only persons who think cerebrally about how
brood, but to introspect, identify areas of worry about the position on the board and sports relate to life. Students must be
improvement, and work hard to get better. not about other things. Each of us may deal encouraged to reflect on their regular
We must similarly respond to failure in our with pressure differently, but we must learn sporting experience, whichever sport they
jobs, startups or other pursuits. to deal with the stress situations we face in choose to play, and determine what life les-

N
early every one of us has played a
sport at some point in our lives.
Most of us enjoy watching sports.
Events like the FIFA World Cup or Wimble-
don attract television and online viewership
in billions. Hosting the Olympic games is
seen as a matter of national pride, and can
impact the fortunes of an entire country or
population. The business of sports is a
is vice-chairman of Krea $500-billion industry worldwide, and
University growing. Clearly, sports is a substantial
aspect of the world we live in.
But what can we learn from sports?
Remarkably, this is not a question that
schools or universities have directly asked or
answered. Universities, for example, have
focused on developing excellence in sports,
and devote substantial resources to build
winning teams and nurture champion ath-
letes. So much so that college football or bas-
ketball in America is widely followed as a
spectator sport. The Oxford-Cambridge
regatta has become an inherent and historic
part of elite higher education in the UK.
Anand believes that sport imitates life, and
shows you how a game needs to be played
correctly. In chess, for example, two players
may be equal in many spheres of the game,
but on a given day, one person wins not
because of complete chess knowledge, but
on that day their preparation, intuition and
guts worked in their favour. Going beyond
developing excellence in sports, universi-
ties must embrace sports as a laboratory for
life skills—where we can experiment and
learn about life.
This can be structured around several
questions. First, how do we learn to cope
with and learn from failure? Losing is an
essential part of sports. No one likes to lose
and, yet, we all do. Playing sports regularly
and, therefore, losing somewhat regularly
gives us an opportunity to develop a culture
of learning from failure. Anand believes that
failures sometimes teach us more than suc-
cess. When you lose a game in chess, you can
pinpoint the exact move that turned the
result. That could be a calculation oversight,
Second, how do we develop a culture of our lives. Sports offer a great testing ground sons they can draw.
constant improvement? When Anand sits for this. In today’s world, there are other interest-
down to prepare for a match, he focuses on Fourth, how do you play fair and play by ing questions too which sports can help us
the problems in his preparation and just the rules all the time, without exception? think about. How is a sport evolving, for
thinks of ways to solve them. Without wor- When you knick an edge of your cricket bat example, and what shape is it likely to take
rying about large, long-term goals or expec- to the wicket keeper, and the umpire hasn’t 20 years from now? Think of the advent of
tations, he just thinks about what he should heard it, do you walk off the pitch back to the T20 cricket or chess robots.
be working on for his pavilion or hold your Trends in sports tend to mirror broader
next game. This cycle of ground? Anand believes trends in society, such as shortening atten-
constant review and QUICK READ that playing fair keeps his tion spans, and studying these can lead to
improvement must carry life simple and keeps him interesting insights.
over into our profes- As chess legend Viswanathan out of real-life chess situ- As yet another example, we might think
sional lives. Anand explains with examples, ations. How you handle about what it means to be a good team player
Third, how does one sports can teach students such these situations in sports in a virtual world, where online gaming par-
learn to deal with pres- life skills as performing under mirrors how you would ticipants team up virtually with other play-
sure situations and per- pressure, playing fair, and coping handle them in life. ers they have never met or otherwise inter-
form under pressure? with and learning from failure. So how can modern acted with.
Anand says that when universities leverage the Sports mirror life, and therefore serve as
you have had enough Universities should make potential of sports to a great laboratory to experiment with, learn
experience, dealing with sports an integral part of their help students learn about and prepare for life in an unpredicta-
pressure becomes sec- curriculum and get accomplished about life? The way to do ble world. Universities must embrace this
ond nature. Sports can be sportspersons to help offer this is to integrate sports view for the benefit of their students.
great training grounds to students the well-rounded into the curriculum Viswanathan Anand contributed to this
give us this experience. education they need. thoughtfully, and open article.
 VIEWS FRIDAY, 27 SEPTEMBER 2019
NEW DELHI 15

GUEST VIEW G LO B A L VO I C E S

The food industry’s role in O

Nancy Pelosi is sending a message
nly three previous American presidents have faced removal from office via
impeachment, so Tuesday’s announcement by Speaker Nancy Pelosi that the

sustainable development House is opening a formal impeachment investigation of President Trump was
historic. Yet in practical terms, the announcement might not seem to mark a seis-
mic shift. After all, for months, the House Judiciary Committee has been conduct-
ing an inquiry into the president that, depending on whom you asked on which day,
was or was not about impeachment. The message for Mr. Trump is the most
straightforward: Enough. After months of watching the president ravage demo-
Decisive changes in today’s agro-industrial practices are needed to ensure the environmental crisis does not get any worse cratic norms and taunt lawmakers about their inability to hold him accountable,
Congress is making clear that there are lines that cannot be crossed without reper-
cussion.
MINT The American public needs to hear this as well. Amid the clamour of Mr. Trump’s
perpetual outrages, Tuesday’s announcement signals: This moment is different.
Pay attention. There are constitutional and national security issues at stake... This
development also sends a message to whistle-blowers in this and future administra-
tions... House Democrats are giving notice that every lawmaker should be prepared
to take a public stand on whether presidents are free to use their powers to summon
foreign assistance for their political campaigns.
The New York Times

JEFFREY D. SACHS & Dialogue could end the US-China trade war
ANGELO RICCABONI
are, respectively, director of the Sustainable
Development Solutions Network,
and chair of the PRIMA Foundation
T he China-US trade talks are to be resumed; tariff exemptions have been
announced; and both administrations are working to ease the trade tensions.
These positive developments would seem to suggest that China and the US are
seeking to prevent bilateral relations from deteriorating further and trying to create
a positive atmosphere for their upcoming trade talks. The US has announced the
exemption, albeit temporarily, of more than 400 types of Chinese products from
the tariffs that it imposed last year, while China has said it will exempt some agricul-

F
eeding a planet of 7.7 billion people is no
easy matter. Every person on the planet
needs, expects, and has the right to a
healthy diet. Every farmer needs,
expects, and has the right to a decent live-
lihood. The roughly ten million other
species on the planet need a habitat in which they
can survive. And every business that produces,
processes and transports food needs and expects to
earn a profit.
It’s a tall order—and it’s not being fulfilled. Over
820 million people are chronically hungry.
Another two billion or so suffer from micronutri-
ent deficiencies, such as a lack of vitamins or pro-
teins. Around 650 million adults are obese, an epi-
demic caused in part by ultra-processed foods that
are stuffed with sugar, saturated fats and other
chemical additives.
But the problems go far beyond hunger and diet.
Today’s agro-industrial practices are the main
cause of deforestation, freshwater depletion and
pollution, soil erosion, and the collapse of biodi-
versity. To top it off, human-induced climate
change, partly caused by the food sector, is wreak-
ing havoc on crop production. With more warming
and population growth ahead, the crisis will
worsen unless decisive changes are made.
The food industry is a powerhouse of the global
economy and includes some of the best-known
brand names, because we connect with them every
day. Solving the many intersecting food crises will
be impossible unless the industry changes its ways.
Fortunately, there is an important glimmer of
hope. A growing number of food companies
understand the challenge and want to forge a new
direction that is consistent with human health and
planetary survival. We have been asked by some
industry leaders, convened by the Barilla Founda-
tion, to help identify the steps needed to align the
food sector with sustainable development.
Our starting point is another source of hope. In
2015, all 193 members of the United Nations agreed
unanimously to two vital agreements. The first,
called Agenda 2030, adopts 17 Sustainable Devel-
opment Goals (SDGs) as a roadmap to human well-
being and planetary safety. The second, the Paris
climate agreement, commits the world’s govern-
ments to taking decisive action to keep global
warming to less than 1.5º Celsius. Both the SDGs
and the Paris agreement require decisive changes
in practices by the food industry.
In our report, we call on all companies in the
food sector to adopt clear guidelines, metrics
and reporting standards to align with the global
goals. Each company must address four critical
questions.
First, do [their] products and strategies contrib-
ute to healthy and sustainable diets? We know that
the fast-food culture is literally killing us. The
tural products, including pork and soybeans, from additional tariffs.
Since China has “broad prospects” for accommodating US agricultural goods,
it is in the interests of the US to sit down and work out a solution with China. Picking
a fight with it would be misguided, as the wilful imposition of tariffs. What matters
most is that the US perceives the differences between the two countries objectively
and handles them properly. China has always insisted that the two sides “meet each
other halfway” and conduct equal-footed consultations to achieve a win-win result
that benefits both countries. It is time that [Washington] learned from its past mis-
takes and took a more constructive approach to end the trade war with China.
China Daily
Action on climate change is still falling short
N ew York hosted three immensely significant events on climate disruption in
recent days. The biggest climate rally in the history of the planet, in solidarity
with millions of other people throughout the world, suggested a great global awak-
ening. It was followed by a United Nations gathering which sought to bring young
people into the heart of the political process. Then, some 100 global leaders con-
vened at the UN to outline new, concrete climate actions. Swedish teenager and
climate activist Greta Thunberg was a towering presence at all three events. She
encapsulated growing anger at politicians with her blistering criticisms, most strik-
ingly the assertion “all you can talk about is money and fairytales of eternal eco-
nomic growth”.
industry has to change to promote healthy diets. hotspots such as the Amazon or Indonesia. And The summit, however, was meaningful. Signatories to the Paris Agreement
Second, are the company’s production practices companies don’t report in detail on their tax prac- flagged their readiness to close an ominous implementation gap next year, while
sustainable? Too many companies are engaged in tices. In short, the food industry’s commitment to 77 states committed to net-zero carbon emissions by 2050... This week’s World
chemical pollution, massive waste from packaging, sustainability is still too often more high-minded Meteorological Organization report, confirming that the causes and effects of cli-
deforestation, excessive and poorly targeted fertil- sentiment than actual reporting and monitoring to mate change are increasing, is deeply concerning... Two crunch questions remain:
izer use, and other environmental ills. ensure alignment with the [global goals]. is the collective effort set out at the UN enough and is it infused with sufficient
Third, are the company’s upstream suppliers But we are not pessimistic. Around the world, urgency? Many governments have declared an emergency but continue to display
sustainable? No consumer food young people are demanding a shocking complacency. To paraphrase Thunberg’s blunt words, “how dare they!”
company should use products sustainable and safe way of living The Irish Times
from farms that contribute to QUICK READ and doing business. Companies,
deforestation. The destruction too, will change. After all, [they]
of forests in the Amazon and Today’s agro-industrial practices need customers who are satis-
Indonesia—literally a scorched- are causing deforestation, fied, workers who are motivated, Bangladesh’s quest for green growth
earth process—underscore the freshwater depletion, pollution and the respect of society as a
need to barcode all food prod-
ucts to ensure that they are
sourced from sustainable farms.
and soil erosion, apart from
reducing biodiversity and
wreaking havoc on crops.
tacit “license to do business.”
Some of the cases we analysed
give us hope that change is possi-
A s a nation that is on the front lines of climate change, Bangladesh can ill-afford
to waste any opportunities that could help our industries become more eco-
friendly. To that end, news of Bangladesh joining the Partnering for Green Growth
Lastly, is the company a good ble. As our project continues, and the Global Goals 2030 (P4G) initiative is wholly welcome and timely, given the
corporate citizen? For example, The food industry must alter with the aim of working with the rising temperatures of the effects of climate change worldwide. For Bangladesh,
aggressive tax practices that its practices and align industry to ensure that perform- not only is it important to join the global fight against climate change—the ramifica-
exploit legal loopholes should be them with global sustainable ance, reporting, and monitoring tions of which are indeed life-threatening—it also makes sense in the context of
avoided, as they deprive govern- development goals for the planet are aligned with sustainable sustainable development. Joining the P4G initiative would give our country access
ments of the revenues needed to to have a better chance at development, we will keep the to the technology, market, and sustainable financing required for our industries
promote public services and containing ecological threats. public informed of what we see. to adopt the best practices when it comes to going green.
thereby achieve the SDGs. The food sector is a key part of By taxing the consumption of fossil fuels and incentivizing green initiatives
As part of our work, we examined the food a larger picture. World leaders gathered at the UN which reward businesses for eco-friendly practices—essentially creating a level
industry’s current reporting practices. While many this week to review progress on the SDGs and the playing field—it encourages players in the private sector to put the health of the
companies purport to pursue sustainable develop- Paris agreement. They must keep in mind one cru- environment first. And thus, it is important to create an enabling environment, with
ment, too few report on the healthfulness of their cial fact: the world’s people are demanding change. ample incentives and opportunities to invest in environment-friendly projects.
product lines or how their products contribute to We have the know-how and wealth to achieve a Economic growth and sustainability certainly need not be at odds—it is possible
healthy and sustainable dietary patterns. Too few prosperous, inclusive and sustainable world. The for Bangladesh to develop and prosper without hurting the environment in which
recognize that they are part of the environmental business sector must urgently recognize, acknowl- we live.
crisis, either directly in their own production, or as edge and act upon its global responsibilities. The Dhaka Tribune
buyers of products produced in environmental ©2019/PROJECT SYNDICATE

MY VIEW | PEN DRIVE

Axe a tree and turn your home into a refugee camp

stand bejewelled with rubies.
KALPISH RATNA I was late getting home. Nothing, no
tremor of prescience, had warned me of any
threat to the tree. Now its bare stump con-
fronted me. The spill of scarlet seeds winked
out like embers on asphalt.
plant above ground, not just the aerial cano- machinery of life worked independent of the trees were felled. The forest was thinned out.
pies of tall trees) is home to 30 million spe- forest floor. Their insect and animal popula- The mosquito vector, Aedes aegypti was
cies—and counting. tions thrived inter-dependently—along with identified as a night-biting tree-hole
When my trees stood tall and brave, I their galaxies of microbes. dweller. By the 1960s, human habitation had
knew some of the inhabitants by appear- Undiscovered continent? increased. Aedes aegypti adapted smartly and
ance, others by song and chatter, still more Universe is more accurate. swiftly to water containers as a nursery for its

O
Ishrat Syed and Kalpana
Swaminathan write
together as Kalpish Ratna.
They are the authors of
‘The Secret Life Of Zika
Virus’
ver the last month, in the small col-
ony where I live, over one million
people lost their homes. They were
evicted overnight. They have lost shelter,
food, livelihood—and in many cases, their
children. As yet, their refugee status has
passed unnoticed. All we saw—with mild
protest—was the act that evicted them.
When I stepped out for my morning walk
that Sunday, a painful glare assailed me.
Dewy sunlight had been transformed into a
sear of brightness. Except for traffic noises
from the street, the air was silent. For one
terrifying instant, I felt the world had
stopped.
My dread was vindicated. A headless torso
blocked my path. It stood shoulder high, dis-
playing the stumps of its amputated arms.
An arterial spurt of scarlet drops in the dust
marked its last shudder of life.
Just yesterday, I had marvelled about the
bean spirals of Adnanthera pavonina, the
manjadi tree. Soon its DNA twists would
That wasn’t all. The neem next to it had
been sawed down to a footstool. The row of
asokas, mere stakes driven into the ground.
Further up, the lordly gulmohar, whose can-
opy fanned out four stories high, was now a
tree-shaped absence in the air. Most chilling
of all was the mutilation of a young banyan
whose slender pillars had been sawn across.
What was the meaning of this massacre?
“BMC rules,” I was told tersely.
The annual municipal pre-monsoon tree-
trim had turned into an orgy of mindless
brutality. This time the men had machines,
and all the protesting voices were drowned
in the whine of electric chainsaws.
I was asked: “Haven’t you read how many
people have been killed by falling trees? Bet-
ter safe than sorry. Trees will grow again, but
can you restore a human life?”
Before such bathos, indignation subsided
to a grumble. Nobody asked the vital ques-
tion: How many people live on a tree?
The tree canopy (defined as the part of a
by the traces they left of a hedonic life- And all its inhabitants had been evicted by eggs. It now winged about at a much lower
style—the badam fruit bleeding on the the mindless felling of a small ring of trees. level. It also switched its feeding schedule to
ground, the half-eaten mango, the violet Where would they all go? human hours. It bit by day.
spatters of yesterday’s gluttony on the Unfortunately, I know the answer. Fifty years is a long time. All this while,
jamun. Others, I identified by their nuisance Through 2016, as I followed the Zika pan- Zika fever appeared sporadically as just
value. A hundred, say... demic, a glaring fact remained a well-kept that—a mild fever, with no outfall. And then
With typical human secret. came its Brazilian iteration in 2015. This hor-
arrogance, I had simply Here’s the Zika time- rific new manifestation caused foetal disrup-
negated other life forms. QUICK READ line. The virus was iso- tion and the birth of microcephalic babies
To ecologists today, lated at the Zika Forest of with damaged brains and eyes.
the tree canopy is the A typical tree canopy is home Kenya in 1947, in a test All research and comment that followed
undiscovered conti- to 30 million species—and rhesus monkey which ignored the one truth—deforestation.
nent—and exploring it is counting. Cutting down trees and was kept chained on a Zika fever cut a swathe through a forest
difficult, hazardous and evicting this population results in high platform, level with repopulated with humans.
sometimes practically our homes becoming refugee the tree canopy. The Cut down a tree, evict its population, and
impossible. The pio- camps for insects. mosquito that bit the you can be certain your own home will soon
neers in this challenging monkey lived up there. It be a refugee camp. The entire planet is now
field, Nalini Nadkarni Deforestation has sent was held responsible for a refugee camp for mosquitoes. They had
and Margaret Lowman, mosquitoes swarming into urban the flu-like illness once lived at a safe remove from us in tree
brought to light amazing spaces. They carry dangerous humans who lived canopies. The viruses they carry are no
facts about the tops of pathogens. The menace of the around the forest some- longer outliers. They are our killer patho-
trees. Tree-tops were Zika virus, for example, can be times reported. gens. They move into my home and yours
autonomous, their traced to a felled forest in Kenya. In the 1950s, those each time we cut down a tree.
16 FRIDAY, 27 SEPTEMBER 2019
NEW DELHI POLICY

HT

Corporate tax
White House tried to lock cut may widen
down call details: complaint fiscal deficit by
40 bps: Fitch
Asit Ranjan Mishra
asit.m@livemint.com
Whistle-blower’s complaint points to possible violations of campaign finance law NEW DELHI IITs may be granted financial and administrative autonomy.

Billy House
feedback@livemint.com R
ating agency Fitch on
Thursday said the Indian
government’s decision to
Government likely to
WASHINGTON sharply cut corporate tax rates
may increase fiscal deficit by 40 grant IITs autonomy
M
ultiple White House basis points (bps) over the bud-
officials were GST get estimate of 3.3% of gross
“deeply disturbed”
by President Donald
Trump’s call with
Network
starts online
refund
processing
domestic product (GDP) for
2019-20. It added that the fiscal
impact will be felt much earlier
on the lines of IIMs
the Ukrainian president and the bit.ly/2npMrPI than the growth impact of the FROM PAGE 1 year. Fee for students from
administration attempted to “lock decision. families with annual income
down” records of the interaction, “Expenditure postpone- try informally on the contours between ₹1-5 lakh is ₹60,000.
according to a whistle-blower’s ments are more difficult for the of administrative and financial Others are eligible for interest-
complaint made public Thursday. government given weak autonomy. free loans. Those who are
The complaint from the whistle- growth, and we expect the cen- One suggestion was to capable of paying, ought to
blower, who hasn’t been publicly tral government to miss its 3.3% charge students the actual pay. Only then we will be able
identified, “appears credible,” the of GDP deficit target for amount IITs spend on them. to deliver social justice.”
intelligence community’s inspec- FY19-20 by about 0.4pp. We Whether this would translate The second official said that
tor general said in a separate letter now expect a general govern- into a direct fee hike or a new while the Centre may continue
released Thursday by House Intel- ment deficit of 7.5% of GDP, model for student financing to appoint directors of IITs, the
ligence Committee. well above the ‘BBB’ category would be introduced, will be engineering schools may be
The information in the com- White House officials used unusual procedures when handling the records of Trump’s 25 July conversation with median of 1.9%,” it added. explored. allowed to select their board of
plaint was gathered from multiple Ukrainian President Volodymyr Zelenskiy, says the whistle-blower’s complaints. AFP Finance minister Nirmala At the B.Tech level, IITs governors, including the
US officials, according to the whis- Sitharaman on Sunday said the charge students ₹2 lakh a year, chairman. “If the plan moves as
tle-blower’s account. security sensitive—information.” Giuliani, is a central figure in this the law every step of the way,” ministry is encouraging whereas the actual cost is desired, the political appoint-
“The White House officials who The whistle-blower’s complaint effort. Attorney General Barr Maguire said. departments and infrastruc- around ₹7 lakh. IITs had last ment and influence in the
told me this information were points to possible violations of cam- appears to be involved as well.” He declined to say whether he ture public sector units to hiked fees in April 2016 from selection of the board of each
deeply disturbed by what had tran- paign finance law as well as an The redacted complaint, and a spoke with Trump about the com- speed up expenditure. ₹90,000 a year to ₹2 lakh. IIT will reduce significantly,”
spired in the phone call. They told attempt to seek foreign assistance letter from the inspector general to plaint, saying such conversations The rating agency said while “Charging a student ₹7 lakh said another IIT professor,
me that there was already a ‘discus- to interfere in or influence a federal acting Director of National Intelli- “are privileged.” He also said that the government has estimated per year may be a bit too much who declined to be named.
sion ongoing’ with White House election. It implicates Trump’s law- gence Joseph Maguire, were once security clearance issues are the cuts to cost around 0.7% of in the Indian context. So, a “This will also help bring in
lawyers about how to treat the call yer and Attorney General William declassified and released ahead of a worked out, the whistle-blower will GDP in lower revenue, the direct fee hike does not look renowned alumni to the gov-
because of the likelihood, be able to “testify fully, and record annual transfer of $24.8 like a possibility as of now,” erning board—the way IIMs
in the officials’ retelling, THE ALLEGATIONS freely, and enjoy the protec- billion from the Reserve Bank said an IIT professor with are now allowed to do. IITs
that they had witnessed tion of the law” to Congress. of India, announced in August, direct knowledge of the devel- running via a self-appointed
the president abuse his THE whistle-blower’s THE complaint INTERFERENCE THE complaint has The complaint from an should largely fill this gap, opment. “What the IIT Council management will be a huge
office for personal gain,” complaint says that
the White House
implicates Trump’s
lawyer and Attorney
includes pressuring a
foreign country to
led to impeachment
inquiry against the
unnamed intelligence official although revenues this year are led by the HRD minister may step forward.”
the complaint says. staff were disturbed General William Barr probe one of Trump’s US president this concerns a sequence of already behind target. explore is to allow IITs to “We are not going to be fully
The whistle-blower over the phone call as well main political rivals week events including Trump’s call However, Fitch said the gov- charge the actual and reim- autonomous like IIMs as we
said that senior White with Zelenskiy. That call and ernment action has both its burse eligible students. It’s a are financially more depend-
House officials used unu- the complaint moved House positive and negative impacts bit complex now, but modali- ent on the government. But
sual procedures when handling the Barr as well. hearing Thursday morning of the Democrats to go forward with an on its sovereign rating assess- ties will have to be worked out significant amount of auton-
records of Trump’s 25 July conver- “This interference includes, House Intelligence Committee. impeachment inquiry against ment. “Higher sustained over a period of time.” omy is certainly coming soon,”
sation with Ukrainian President among other things, pressuring a Maguire told the House panel in Trump. Several White House aides investment and growth rates, During the 2016 fee hike, he added.
Volodymyr Zelenskiy. They said it foreign country to investigate one public testimony that he believes and Trump loyalists expressed without the creation of macro- then HRD minister Prakash The IIT Council is the apex
wasn’t the first time that a presiden- of the president’s main domestic that the whistle-blower and the skepticism about the whistle- economic imbalances, could be Javadekar defended the move decision-making body of all
tial transcript was put into a “code political rivals,” the complaint says, intelligence community’s inspec- blower’s credibility, because the positive for India’s credit pro- in the Lok Sabha: “Today (in IITs. It is headed by the HRD
word-level system solely for the referring to Democratic presiden- tor general acted in “good faith.” person learned of the allegations file, while a rise in the govern- 2016) the government spends minister, and comprises all the
purpose of protecting politically tial candidate Joe Biden. “The pres- “I think the whistle-blower did second-hand and didn’t identify ment debt burden could be ₹6 lakh per student, while the directors, board chairmen and
sensitive—rather than national ident’s personal lawyer, Rudolph the right thing. I think he followed any sources. BLOOMBERG negative,” it added. maximum fee today is ₹2 lakh a a few outside experts.
 POLITICS FRIDAY, 27 SEPTEMBER 2019
NEW DELHI 17

EPFO ties up with IIM-B to

More than 18,236 hospitals
have been empanelled so far
under PM-JAY. PRADEEP GAUR/MINT
manage its funds better
IIM-Bangalore will train EPFO officers on investments and portfolio management
Union home secretary Ajay Bhalla chaired a meeting on Thursday
Prashant K. Nanda to discuss implementation of the J&K Reorganisation Act. PTI
prashant.n@livemint.com

Over 42,000
NEW DELHI
Centre, J&K officials
R
etirement fund manager
people outside Army Chief

their states
Employees’ Provident
Fund Organisation
(EPFO) has joined hands
Gen Bipin
Rawat to be
new
meet to review state’s
with the Indian Institute Chairman,

gained under of Management-Bangalore (IIM-B)

to create a pool of finance and
Chiefs of
Staff
Committee
reorganization plan
PM-JAY in 2018 investment professionals as its cor-
pus continues to bulge and it bit.ly/2m49gs3

explores options to diversify invest- Shaswati Das manyam, J&K principal secre-
ment. shaswati.d@livemint.com tary Rohit Kansal and addi-
Neetu Chandra Sharma EPFO had already got a couple of NEW DELHI tional secretary (Jammu and
neetu.s@livemint.com batches of its officers trained and is Kashmir division) Gynesh

W
NEW DELHI sending another batch for an ith a month to go for Kumar held a two-hour-long
“advanced training programme on the Jammu and meeting in this context.

M
ore than 42,000 peo-
ple availed treatment
under the govern-
ment’s health scheme Ayush-
man Bharat-Pradhan Mantri
Jan Arogya Yojana (PM-JAY)
outside their states in the past
year.
“Many Indians migrate and
travel, mainly due to work. A
unique feature of PM-JAY is its
portability, which has helped
the eligible poor and migrant
workers seek treatment outside
their states. So far, there have
been 42,631 portability cases,”
said Indu Bhushan, chief exec-
utive officer, National Health
Authority, the implementing
agency for AB- PMJAY.
To cater to demand for servi-
ces under PM-JAY, and ensure
quality care to beneficiaries,
the Union health ministry, said
in a statement on Thursday that
51 hospitals are empanelled
every day, helping build a net-
work of hospitals that conform
to quality standards.
According to the ministry,
more than 18,236 hospitals
have been empanelled so far to
ensure optimal accessibility to
eligible families. The figure
comprises 53% private hospi-
tals. There are nine hospital
admissions every minute in
India.
PM-JAY provides cashless
and paperless access to services
for the beneficiary at the point
of service. “The uptake of
PM-JAY by private sector pro-
viders has been very encourag-
ing. We have many private hos-
pitals empanelled under
PM-JAY. We are working on
getting the top corporate hos-
pitals on board, so that benefi-
finance and investment” beginning Kashmir Reorgani- Previously recruited officers
on 30 September, according to an sation Act to take effect, the of the Jammu and Kashmir
internal circular of the fund man- Union home ministry and the cadre of the Indian Administra-
ager seen by Mint. Jammu and Kashmir adminis- tive Service (IAS), Indian Police
The officers will be trained at EPFO is sending a fresh batch of officers to IIM-B for a training programme beginning 30 September. PRADEEP GAUR/MINT tration have begun to flesh out Service (IPS), and other central
IIM-B with special emphasis on the the modalities of the move. service officers will continue to
financial market index, options and additional central PF commis- finance department of the EPFO millions of subscribers. Union home secretary Ajay serve in the parent cadre, while
derivatives, portfolio selection and sioner and regional PF commis- and finance investment committee The retirement fund manager is Bhalla and Jammu and Kash- new recruits will be allocated
diversification, exchange traded sioner having experience of 10 or who regularly deal with AMCs also exploring ways to broaden its mir chief secretary B.V.R. the Arunachal Goa Mizoram
funds (ETFs), behavioural finance, more years. related to fund flow, investment equity portfolio beyond the ETFs Subrahmanyam met in the and Union Territories
and portfolio performance moni- EPFO has fund managers in the and liquidation. Unless their comprising Nifty 50 and Sensex 30 national capital (AGMUT) cadre,
toring. form of asset management compa- knowledge grows, they won’t be stocks. It feels that equity invest- on Thursday, in The allocation of according to the
“Though EPFO is a social secu- nies (AMCs) to take care of its capable of dealing with and guiding ments in just two categories of the third meeting employees and Act.
rity and finance organization, most investments. In August, the central the AMCs effectively, the EPFO ETFs run the risk of too much con- between them to officers between The allocation
of its officers are not well-trained board of the EPFO decided to official cited above said. centration in a small clutch of lay the ground- the two UTs, and of employees and
finance professionals. We stocks and lower returns work for the two
division of assets officers between
wish to train and create a DOMAIN EXPERTISE because of lack of diversifi- Union territories the two UTs, as
are key issues to well as the divi-
pool of officers to handle cation. Its investment com- (UTs) of Jammu
the EPFO corpus better. EPFO aims to create IT is sending officers THE officers will be TRAINING will mittee has been deliberat- and Kashmir and be addressed sion of assets, are
This will bring profession- ahandle
pool of officers to
the EPFO
for training in the
cadre of central
trained at IIM-B with
emphasis on market
help them make the
right investment
ing for months now on Ladakh. key issues that are
alism, more domain corpus of over and regional PF index, portfolio decisions, guide whether it should invest in The announce- being fleshed out.
expertise and vision on ₹11 trillion better commissioners diversification, ETFs AMCs better multi-cap and mid-cap ment bifurcating Jammu and Ladakh will be a UT without
how to manage the money ETFs, a market instrument Kashmir into two UTs was a legislative assembly, while the
better,” said an EPFO offi- that is far more volatile but made on 5 August, along with UT of Jammu and Kashmir will
cial requesting anonymity. appoint two asset management At present, EPFO has a corpus of can provide better risk-adjusted the decision to abrogate Article have a lieutenant governor and
“The objective of this pro- companies, UTI AMC and SBI more than ₹11 trillion and every returns over the long term and such 370, which gave special status a 107-member assembly, which
gramme is to train the officers of Mutual Fund, as its fund managers year it gets an annual deposit of training at IIM-B will help the orga- to the erstwhile state. will be enhanced to 114 after a
EPFO on equity investments and for three years beginning October more than ₹1.25 trillion from more nization to take better decisions, Various aspects of the J&K delimitation exercise. As many
portfolio management so that they 2019. The body had appointed the than 60 million active subscribers. said the EPFO official cited above. Reorganisation Act and its as 24 seats of the assembly will
can make the right investment State Bank of India, ICICI Securi- Of the annual accruals, it invests There is a concerted effort to implementation were dis- remain vacant as they fall under
decisions and monitor the per- ties Primary Dealership, Reliance 85% in debt instruments and 15% in bring professionalism to the orga- cussed on Thursday, said peo- Pakistan-occupied Kashmir.
formance of the investments on an Capital, and HSBC AMC for a three- stocks via ETFs. EPFO has invested nization, a point that the draft social ple familiar with the develop- Kashmir has been grappling
ongoing basis,” said Madan Mohan year term, starting 1 April 2015. more than ₹70,000 in ETFs over security code, too, has hinted at in ment, requesting anonymity. with a curfew, communication
Raj, chief programmes officer, Their tenure was extended till new past three years but does not have a the form appointing a CEO from The Act will come into effect on shutdown, and a heavy security
executive education, at IIM-B. fund managers were appointed. formal system in place yet on how it outside the government fold to lead 31 October. blanket since Article 370 was
The officers are in the cadre of There is a team of officers in the wants to credit the ETF benefits to the retirement fund body, he said. On Wednesday, Subrah- abrogated.
AIMIM may be open to a pact with former ally VBA for Maharashtra elections
HT ANIRUDHHA CHOWDHURY/MINT
Yunus Y. Lasania assembly polls, AIMIM had caste, scheduled tribe, other So far, the AIMIM has
yunus.y@livemint.com contested 24 seats, and man- backward classes and Muslim released names of 12 candi-
HYDERABAD aged to win the Aurangabad organizations. dates in three lists, which
Central and A senior AIMIM includes non-Muslims.

ciaries have maximum choi-
ces,” said Bhushan.
Prime Minister Narendra
Modi had launched PM-JAY on
23 September 2018 from Ran-
chi, Jharkhand. According to
the ministry, over the last one
year, nearly ₹7,500 crore have
been spent on 4.64 million hos-
pital treatments, with 60% of
the amount spent on tertiary
care.
PM-JAY is the government’s
flagship scheme which aims to
bring quality healthcare to
around 500 million poor and
vulnerable citizens. The
scheme gives annual health-
care benefit of up to ₹5 lakh for
every entitled family. PM-JAY
is described as the world’s larg-
est government-funded health
insurance scheme.
D PRE-POLL f u n c t i o n a r y ,
espite backing out of
the Vanchit Bahujan
Aghadi (VBA) coalition
in Maharashtra, the All India
Majlis-e-Ittehadul Muslimeen
(AIMIM) might still be open to
having an understanding with
it in the forthcoming state
assembly elections. The
Hyderabad-based AIMIM had
quit the VBA earlier this
month following differences
over seat-sharing, and is likely
to contest 50-60 out of the
288 constituencies. The sin-
gle-phase Maharashtra elec-
tions will be held on 21 Octo-
ber.
Imtiyaz Jaleel, sitting mem-
ber of Parliament from the
Aurangabad Lok Sabha con-
stituency and Maharashtra
and the AIMIM’s chief in the
AIMIM chief Asaduddin Owaisi and (right) Bharipa Bahujan Mahasangh’s Prakash Ambedkar, who
formed the VBA which is a coalition of several SC, ST, OBC and Muslim organizations.
Maharashtra assembly, said
his party is likely to contest 50
to 60 seats, and is still open to
having an understanding with
the VBA.
“There are still 230-odd
seats, so we will decide,”
Jaleel said in an interview.
He added that his party is
receiving many applications
from non-Muslim candidates
for tickets. The AIMIM had
called off the alliance with
VBA after being offered only
eight seats.
In the 2019 Lok Sabha elec-
tions, the AIMIM had wrested
the Aurangabad seat from the
Shiv Seva, with VBA support.
AIMIM’s only other MP is
party chief Asaduddin Owaisi,
who won the Hyderabad par-
liamentary seat.
In the 2014 Maharashtra
Byculla seats. It Hyderabad-based political
had come in sec- ALLIANCE requesting ano- analyst Palwai Raghavendra
ond and third posi- nymity, said it was Reddy said now, the AIMIM’s
tions in nine other AIMIM quit the only logical that narrative is likely to change,
seats, securing VBA over seat-
sharing issues, and
AIMIM supports and it might be along reli-
900,000 votes. is likely to contest the VBA in seats it gious lines.
With the AIM- 50-60 seats doesn’t contest, as “Unlike with the VBA,
IM-VBA alliance it cannot offer where it had a stronger narra-
falling apart, it is IT was logical that support to the tive while approaching the
AIMIM supports the
going to be a mul- VBA in seats it Congress or the public, it will now change
ti-cornered fight doesn’t contest, said NCP. back to what it was. Its party
in Maharashtra— analysts “We will still go leaders will of course react to
the Bharatiya Jan- by the ‘Jai Bheem, the BJP’s statements on vari-
ata Party Jai Meem’ slogan’, ous issues,” he said.
(BJP)-Shiv Sena combine, the since we can’t be neutral and Reddy added that it is also
Congress-Nationalist Con- not take a stand,” the AIMIM to be seen as to how many
gress Party (NCP) alliance, the functionary added. seats the AIMIM will give to
VBA, the AIMIM and the Aam In the 2014 state elections, non-Muslims. In the AIMIM’s
Aadmi Party (AAP). the Congress, BJP, Shiv Sena, bastion in Hyderabad (old city
The Prakash Ambedkar-led NCP and AIMIM had con- areas), all of its seven MLAs
Bharipa Bahujan Mahasangh tested separately, allowing are Muslims, while some of its
(BBM) had formed the VBA, a the AIMIM to consolidate corporators in the city are
coalition of several scheduled Muslim votes. non-Muslims.

be produced before a CBI special court in Kolkata on Friday.

m SHORT TAKES In 2016, Mathew Samuel, the editor and managing director of
Sebi to work on proposal to cut Ex-French president Jacques Chirac,
Narada news portal, had released a sting video, wherein several time taken for rights issue who stood up to US, dies at 86
Trinamool Congress (TMC) leaders, including members of Parlia- ANIRUDDHA CHOWDHURY/MINT
Cong leader Shivakumar moves HC ment (MPs) and ministers, were allegedly seen accepting bribes on Paris: Jacques Chirac, a two-
REUTERS

for bail in money laundering case
PTI
New Delhi: Senior Congress
leader D.K. Shivakumar, who
was arrested by the Enforce-
ment Directorate (ED) in a
money laundering case, moved
the Delhi high court (HC) seek-
ing bail on Thursday.
A similar plea was rejected by
a special Central Bureau of
Investigation (CBI) court on Wednesday. PRATHMA SHARMA
CBI makes first arrest in
Narada scam, books IPS officer
New Delhi: Suspended Indian Police Service (IPS) officer and
former Superintendent of Police of Burdwan district in West Ben-
gal S.M.H. Mirza was arrested on Thursday by the Central Bureau
of Investigation (CBI) in the Narada sting operation case. Mirza will
camera. SHASWATI DAS
Oil firms scramble for LPG to meet
festive demand as Saudis defer flow
New Delhi/Singapore: Fuel retailers Indian Oil Corp., Bharat
Petroleum Corp. and Hindustan Petroleum Corp. are scampering
for liquefied petroleum gas (LPG) ahead of the festive season, as
demand looks set to climb just as drone attacks on Saudi Arabian
facilities hurt exports, said Sanjiv Singh, chairman of Indian Oil.
RAMESH PATHANIA/MINT “We are anticipating higher
demand for LPG next month
and Saudis have also indicated
deferment of the first couple of
shipments for October,” he said
in a phone interview. “We are
pursuing very hard for some
extra LPG. Everyone is trying,
because October-November are
tricky months.” BLOOMBERG
term French president who was
the first leader to acknowledge
France’s role in the Holocaust
and defiantly opposed the US
invasion of Iraq in 2003, died
Thursday at age 86.
His son-in-law Frederic Salat-
Baroux told The Associated Press
that Chirac died “peacefully, among his loved ones.” He did not
give a cause of death, though Chirac had had repeated health prob-
lems since leaving office in 2007. AP
Mumbai: Markets regulator Securities and Exchange Board
of India (Sebi) on Thursday said it will soon take a view on a
proposal to reduce the time taken for rights issues to around Centre faces first court challenges
31 days.
to ban on e-cigarettes
Besides, the market watchdog is in the process of taking
steps to further strengthen the framework for alternative
investment funds (AIFs), Sebi chairman Ajay Tyagi said. He New Delhi: The government’s ban on e-cigarettes has been chal-
further said Sebi is examining the concept of company “pro- lenged in Kolkata high court by Plume Vapour and another com-
moters” and studying if we can shift to “controlling share- pany named Woke Vapors, in two separate challenges.
holders”. REUTERS This marks the start of the first legal battle against the Centre’s
anti-vaping decision. REUTERS
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 13 NO. 232 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR)

FACEBOOK LANDS DIGITAL AMCs, BORROWERS CAN’T HAVE

FRIDAY, SEPTEMBER 27, 2019 RIGHTS FOR ICC EVENTS uP9 STANDSTILL PACT, SAYS SEBI uP10
LIVEMINT.COM

DON’T MISS
EC defers Karnataka bypolls till TWITTERVERSE

SC decides fate of 17 rebel MLAs Devendra Fadnavis

@Dev_Fadnavis
15,000 persons evacu-
ated from Baramati.
IIM-B to train
Situation is fully under
EPFO officials Move marks a breather for ruling BJP, which gets time to address internal issues over ticket distribution control and we are
IIM-Bangalore will train keeping close watch.
EPFO officers on #punerains
investments and Japnam K. Bindra & Nidheesh M.K. the nomination of the rebels for the
portfolio management. NEW DELHI/BENGALURU bypolls. For his part, Yediyurappa
See Page 17
was also drawing criticism on gov-

MHA reviews J&K
bifurcation plan
The home ministry and
the J&K administration
discuss implementation
of J&K Reorganisation
Act. See Page 17
French leader
Jacques Chirac dies
Jacques Chirac, the first
leader to acknowledge
France’s role in the
Holocaust, died at the
age of 86. See Page 17
Tax cut may swell
fiscal deficit: Fitch
Rating agency Fitch said
Indian govt’s move to cut
corporate tax rates may
raise fiscal deficit by 40
basis points. See Page 16
T
he Election Commission
(EC) on Thursday
Intensify deferred bypolls to 15
anti-
assembly seats in Karna-
militancy
ops in J&K taka until after the fate of
but ensure 17 disqualified legislators is decided
no collateral by the Supreme Court. The move
damage:
came after the apex court
Doval
adjourned the MLAs’ case to 22
bit.ly/2m4aKm
7
October.
Deferring of the bypolls that
were to have been held on 21 Octo-
ber is an unprecedented and cru-
cial step for Karnataka’s fluid poli-
tics. It gives the rebels and the rul-
ing Bharatiya Janata Party (BJP)
some breathing space as now they
will not have to go to the polls with
legal wrangles hanging over their
heads, according to analysts.
For BJP leader and chief minis-
ter B.S. Yediyurappa, analysts said,
it also gives some time to try and
address internal differences over
giving tickets to the rebels and per-
ceived lapses in governance.
The stability of the recently-
formed government, the only BJP
government in the south, hinged
on the bypolls. It was necessitated
after 15 rebels quit and toppled the
previous Congress-Janata Dal (Sec-
ular) rule in July. After days of
uncertainty, the then speaker K.R.
Ramesh Kumar not only accepted
the resignations but went a step
further and disqualified them, rul-
ernance issues in his two months in
office, especially on the recent
rehabilitation of flood victims in
north Karnataka. That eight seats of
the bypolls are being held in south-
ern pockets where historically the Narendra Modi
JD(S) and Congress are stronger,
@narendramodi
also does not do any good for the The India-Caricom
party. Leaders’ Meeting held in
Although the Congress wel- New York was an impor-
comed the EC decision, the JD(S) tant occasion for us. I
said it showed the influence of the thank the esteemed
Centre-ruling BJP. “This is demoli- world leaders who
tion of democracy. First time this joined the meeting.
development is taking place. India is eager to work
Shameful on part of the concerned with our friends in the
authorities,” JD(S) leader and Caribbean to build a
former chief minister H. D. Kumar- better planet.
Supreme Court has adjourned the case of the 17 disqualified Karnataka MLAs to 22 October. PTI aswamy said.
“It is indeed a temporary victory
ing they cannot return to contest senting EC. The EC clarified that top court that his predecessor was for the BJP,” said analyst Sandeep
the bypolls, which was then chal- the polls will be eventually held wrong and said the disqualified Shastri. “But they have only got a
lenged by the rebels in the apex within the stipulated period: six MLAs have a “democratic right” to chance to postponing their prob-
court. months from the time the seats fell contest polls. The EC also told the lems rather than solving them.”
On Thursday, apex court on The BJP government now has
an SC bench com- TEMPORARY DELAY Wednesday that 104 MLAs plus an independent
prising Justices it’s not opposed to offering outside support. With the
Sanjiv Khanna and 15 out of the total 17 THE bypoll was EC clarified that polls the MLAs contest- results to the 15 bypolls, the total Rahul Gandhi
Krishna Murari vacant assembly
seats in Karnataka
necessitated after 15 will be held within the
rebels quit and stipulated period: six
ing. house strength will be 223. So, the @RahulGandhi
said it would hear were scheduled to Meanwhile, BJP needs to win at least seven seats On his birthday, let us
toppled the previous months from the time
the complete go to polls on 21 Oct Congress-JD(S) rule the seats fell vacant back in Karnataka, in the bypolls to have a majority of acknowledge Dr Man-
arguments at the state unit of the one. Or six, if the mercy of H. mohan Singh Ji’s selfless
length and BJP was also veer- Nagesh, the independent who is service, dedication &
deferred the case. “Then I will ask vacant. ing off course. Faced with dissent known to switch parties, continues. incredible contribution
to the cause of nation
the Election Commission to defer it On Wednesday, the office of the over giving tickets to the rebel japnam.b@livemint.com
(by-polls) for some time,” said sen- current speaker, Vishweshwar MLAs, its core committee met on Prathma Sharma and Sharan building.
ior counsel Rakesh Dwivedi, repre- Hegde Kageri of the BJP, told the Wednesday without announcing Poovanna contributed to this story.

Anticipating early polls India, Pakistan are at ‘very serious odds’ with each other, says Trump
in Delhi, AAP appoints Elizabeth Roche
elizabeth.r@livemint.com
Trump was quoted as saying.
Tensions between the two
Kashmiris. New Delhi had
imposed certain restrictions,
added: “Those are two nuclear
countries; they got to work it
NEW DELHI nations intensified after India including on the movement of out.”
key campaign panel scrapped a temporary provi- people and communications, Trump had first met Modi

I
ndia and Pakistan remain at sion in its Constitution and to ensure terrorists infiltrated on Sunday at an Indian Ameri-
“very serious odds” with integrated the state of Jammu by Pakistan into Kashmir do can community event at Hous-
each other, US President and Kashmir more closely with not stoke violence. The ton where Modi slammed Pak-
Pretika Khanna Donald Trump said on the rest of the country. In restrictions have been eased in istan without naming the
pretika.k@livemint.com Wednesday, making an offer effect, New Delhi changed the phases with only a few remain- country for its criticism and
NEW DELHI yet again to arbitrate or medi- parameters of its dialogue with ing as a precautionary meas- diplomatic push to get India
ate between the two countries Pakistan on the decades-long ure, according to Indian gov- censured for its move on Kash-

T
he Aam Aadmi Party to resolve the Kashmir dis- dispute, taking J&K out of the ernment officials. India has mir.
(AAP) on Thursday pute. purview of any future talks, a also pointed out that lives have After offering to mediate
appointed senior party During his meetings with move that infuriated Islama- not been lost and there has between India and Pakistan
leader and Rajya Sabha mem- Pakistani Prime Minister President Trump said he had ‘very productive’ meetings with both bad. been no unrest, contrary to the several times since the first
ber Sanjay Singh as the elec- Imran Khan on Monday and leaders (Modi and Imran) on the sidelines of the UNGA session. AFP Khan and others have been scary pictures painted by Paki- time on 22 July, Trump had
tion in-charge for the forth- Indian Prime Minister Naren- on a campaign to highlight stan of “ethnic cleansing” and appeared to back off. On Tues-
coming Delhi assembly polls. dra Modi on Tuesday, Trump he had “very productive” offered whether it is arbitra- what they allege “human “genocide” in the region. day at his meeting with Modi,
The party also appointed also said he had told both lead- meetings with both leaders on tion or mediation, or whatever rights violations in Indian At his press conference, Trump had said he was confi-
national secretary Pankaj ers: “Fellows, work it out,” the sidelines of the UN Gen- it has to be I’ll do whatever I administered Kashmir” Trump described both Modi dent Modi could deal with the
Gupta as the campaign according to news reports. eral Assembly session. “With can because they are at very describing measures put in and Khan as “good friends of situation as he responded to a
director for the elections. Addressing a news confer- respect to Pakistan and India, serious odds right now and place to ensure security as vio- mine”, adding: “I told them, query on terrorism emanating
The decision was taken at AAP leader Sanjay Singh was ence in New York, Trump said we talked about Kashmir. I hopefully that will get better,” lative of the basic rights of fellows, work it out.” He from Pakistan.
the party’s political affairs appointed as in-charge for
committee (PAC) meeting Delhi assembly elections. HT
chaired by AAP national con-
vener and Delhi chief minister a likelihood of dates for Delhi
Arvind Kejriwal. The term of elections being announced
the assembly ends in February along with Jharkhand soon.
2020, but AAP expects that The AAP will contest the Delhi
the election dates will be assembly polls on the basis of
UNSC panel allows Hafiz Saeed to use bank account for ‘basic expenses’
announced along with those the historic performance of its
for the Jharkhand assembly elected government, which Elizabeth Roche justice. 2008 attack, said analysts. $1,000) to cover necessary
polls. The term of the Jhark- has changed the face of the elizabeth.r@livemint.com The timing of the UNSC Pakistan would have had to basic living expenses for him
hand assembly ends in national capital and has NEW DELHI move gains significance, as it circulate a note on lifting the and his family.
December. ensured all-round develop- comes amid Prime Minister freeze on Saeed’s bank “Pakistan seems to have suc-

A
“Best wishes Sanjay Singh ment,” the party said. UN Security Council Narendra Modi’s visit to New accounts at least a month in cessfully gamed the 1267 Sanc-
and Pankaj Gupta. Five years The AAP came to power in (UNSC) committee has York to attend the UN General advance for members of the tions Committee. By making
of AAP government has 2015 after winning a brute approved Pakistan’s Assembly session along with 1267 Sanctions Committee, this request, they have made it
proved to be a majority in the request to let Lashkar-e-Taiba foreign minister S. Jaishankar. whose composition is the same out to be that all sources of
revolution. It has AAP expects the assembly and is chief Hafiz Saeed, the master- India’s foreign ministry was yet as the UN Security finance for Saeed
given hope that, dates for Delhi banking on the mind of the 2008 Mumbai ter- to react to this development, Council, to con- It is surprising have dried up
yes, it’s possible,” assembly polls work done by the rorist attack, use his bank which raised questions about sult with their that no one raised thanks to compli-
Kejriwal said on will be announced government in account for meeting “basic whether New Delhi was aware capitals on what objections to the ance with the
Twitter. So far, the past five expenses”. of the Pakistani move and, if it stance to take on Pakistani move (Paris-based)
elections have
along with those years, especially
Saeed, a UN-designated ter- was, why it did not object to it Lashkar-e-Taiba chief Hafiz Saeed’s bank accounts were frozen the move, accord- to let Saeed use Financial Action
been held on for Jharkhand in the areas of rorist, has a $10 million bounty through friendly countries in by the Pakistani government to comply with UNSC resolutions as ing to people his bank account, T a s k Force
issues such as elections education, on his head announced by the the sanctions committee. he is a UN-designated global terrorist. AFP familiar with the requirements,”
say analysts
caste and reli- health, electric- US in 2012 for “any information “The chair has the honour to procedure fol- said former for-
gion, but this ity, and water. leading to the arrest and con- refer to his draft letter to the specified in the note verbale of states that there were no objec- lowed by the eign secretary
election will be held on the In this election, the AAP is viction”. Islamic Republic of Pakistan the Islamic Republic of Paki- tions from the committee panel. Kanwal Sibal.
work done by the party, he facing stiff competition from India says Saeed is the main communicating the commit- stan...,” said the 1267 Sanctions members or any other UN Saeed’s bank accounts were “The Pakistanis have made it
said. the Bharatiya Janata Party plotter behind the 2008 strike tee’s decision with respect to Committee note. The commit- member to the Pakistani frozen by the Pakistani govern- appear that this is a humanitar-
“The decisions are a part of (BJP) and the Congress. In the in Mumbai that killed more the intention of the Pakistani tee deals with terror groups request to let Saeed access his ment to comply with UNSC res- ian gesture for support to
the AAP’s election strategy, in recently concluded Lok Sabha than 166 people, including six authorities to authorise certain such as the Islamic State, bank account. It is surprising olutions as he is a UN-desig- Saeed’s family. This is most
anticipation of the party’s elections, the AAP failed to win Americans. India has been expenditures to the benefit of Al-Qaeda, and associated indi- that no one raised objections to nated global terrorist. Pakistan awkward for India that its most
preparations for the forthcom- even one seat in Delhi and repeatedly asking Pakistan to Hafiz Mohammad Saeed, Haji viduals, groups, undertakings, the Pakistani move, given that had requested the UN to let wanted terrorist is being molly
ing assembly polls, since the came third in five of the seven bring Saeed and others Muhammad Ashraf, and Zafar and entities. countries such as the US and Saeed withdraw 150,000 Paki- coddled by the UNSC that
party is of the view that there is Lok Sabha constituencies. involved in the 2008 attacks to Iqbal, to cover basic expenses as Curiously, the note also Germany lost nationals in the stani rupees (approximately labelled Saeed a terrorist.”