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MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 3 NO. 97

TUESDAY, APRIL 21, 2020

LIVEMINT.COM

SENSEX NIFTY DOLLAR EURO GOLD OIL

31,648.00 9,261.85 ₹76.54 ₹83.19 ₹40,989 $27.08
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mint primer
QUICK EDIT
RBI gives NBFCs Clarity,
room to hold on please
to realty hopes On Monday, the Reserve Bank
of India (RBI) raised the limit on
short-term funds the govern-
BY VIVEK KAUL ment could draw to meet its
immediate expenses to ₹2 tril-
The Reserve Bank of India (RBI) has let non-banking financial
companies (NBFCs) extend by a year the date for starting operations lion for the first half of 2020-21.
for loans to real estate projects delayed for reasons beyond the control On 31 March, RBI had upped its
of promoters. This won’t be treated as restructuring. Mint takes a look. cap on these ways and means
advances (WMAs), as they’re
A quantum leap called, to ₹1.2 trillion from
Total bank lending to NBFCs inched up from ₹2.9 trillion in December 2013 ₹75,000 crore for the first half
to ₹3.2 trillion three years later. But in another three years, it jumped 128% of 2019-20. As the scale of the
to ₹7.3 trillion. covid crisis has become clearer
8
7.3 over the past three weeks, a
7 revision was only to be
6
Bank lending to NBFCs (in ₹ trillion) expected. On Friday, RBI had
5
granted Indian states more
room to borrow such money
4
under this stopgap facility
3 2.9 meant for administrations that
2 are momentarily short of cash.
The Centre’s finances were
1
already weak. The Great Lock-
0
Dec 2013 Dec 2019 down has now squashed its rev-
Source: Reserve Bank of India enues, even as huge sums must
PARAS JAIN-MINT
be deployed against the pan-
Where did NBFCs get Haven’t banks always demic and for immediate relief.
1 the money to lend?
In October 2016, total bank
2 lent money to NBFCs?
Yes, but not at this pace. As of
For a big stimulus package to
spur an economic revival, far
deposits stood at ₹99.3 trillion. On December 2013, total bank lending more money will be needed.
8 November, the government to NBFCs was ₹2.9 trillion. Three The government must quickly
demonetized ₹500 and ₹1,000 years later, in December 2016, it put an all-new Union budget
notes and these had to be inched up to ₹3.2 trillion. But together, with details of what it
deposited into banks. By another three years later, in plans to spend and how it will
December that year, the total December 2019, it had surged to
arrange the funds. Uncertainty
deposits of banks were at ₹105.7 ₹7.3 trillion. So, following
trillion, a jump of 6.5% in a span of demonetization, banks ended up over the Centre’s approach to
two months. Banks couldn’t lend lending a lot of this money to the economy has kept debt
this money out in a hurry. NBFCs, which lent a good part of markets edgy and lenders nerv-
Gradually, they ended up lending a this money to real estate builders. ous. Clarity would help.
lot of this money to NBFCs. The Before NBFCs became aggressive
total bank lending to NBFCs as of lenders to the real estate sector, it
December 2016 was ₹3.2 trillion. was funded primarily by banks and
As of December 2019, it stood at people looking to buy under-
₹7.3 trillion, a jump of 128% in a
period of just three years (see
construction properties, who
ended up having to pay upfront for
MINT METRIC
chart). their purchase. by Bibek Debroy

Those who spit

3 How much did NBFCs end
up lending to real estate?
As Arvind Subramanian and Josh Felman
Are likely to transmit.
write in a working paper, India’s Great
Perhaps the fine
Slowdown, published in December 2019: Will persuade the swine
“In recent years most of the incremental
lending has come from NBFCs, so much so
To finally decide to quit.
that by 2018-19, NBFCs accounted for
about half of the ₹5 lakh crore (trillion) in
real estate loans outstanding.” Bank loans
to realty have barely moved up in that time. QUOTE OF THE DAY
We stand at the beginning of
4 What’s the problem
with this lending?
As Subramanian and Felman write:
5 What’s the central
bank trying to do?
Quite a lot of what looks like
the pandemic and are still a
“This funding was provided on the lending to NBFCs on the books of
long way from being out of the
assumption that developers would banks is actually indirect lending woods... It would be a crying
be able to complete their projects, to the real estate sector. In this
sell off their inventories, and then scenario, if real estate companies
shame if we were to stumble
repay.” The inventory of unsold don’t pay up NBFCs, the latter into a relapse with our eyes
homes of builders continues to run won’t be able to repay banks.
into hundreds of thousands. Hence, an NBFC crisis might turn
wide open.
People are not willing to buy these into a banking crisis, something
homes at prices set by the builders. RBI would like to avoid. On the
RBI’s latest move allows real estate other hand, the chances of real
builders another year to meet their estate prices crashing just went
loan obligations. This helps down a tad. In economics, there is
NBFCs, as the chances of builders never a free lunch. ANGELA MERKEL
defaulting on loans were high Vivek Kaul is a Mumbai-based GERMAN CHANCELLOR
given the lack of new home sales. economist.

m MINT SHORT

Mechanical pollinators may step in for bees

REUTERS
Lianne Back sive agriculture, the use of pesticides
TEL ARAD, ISRAEL and climate change.
Most crops rely on pollination, so the

A
mechanical hum replaced the
buzzing of the bees in one Israeli
community this season as farm-
ers, concerned over the global drop in
bee populations, tried out a new method
of pollinating their crops.
Through an almond orchard in the
area of Tel Arad in a desert plain in
southern Israel, a tractor pulled a mast
equipped with about a dozen small can-
non that fired precise shots of pollen at
the trees, enabling them to fertilize.
Global drop in population of bees has
prompted some Israeli farmers to try a
new method of pollinating their crops.
The job is usually done by natural pol-
linators—most often bees—but there
has been a drastic fall in bee numbers
around the world, largely due to inten-
trend has worried groups like the UN
Food and Agriculture Organization as it
looks to fight hunger in the growing
human population.
“We see a crisis in 15 years where we
don’t have enough insects in the world
to actually do pollination and most of
our vitamins and fruits are gone,” said
Eylam Ran, CEO of Edete Precision
Technologies for Agriculture.

feedback@livemint.com
REUTERS
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FLIP SIDE
L ET
VA
WS
NE
YO
U R m
Mint Lite
Mint editors curate the Top 10 news and views around the world that you can savour at the start of the day.

A
number of states across the country on Monday opened up factories and farming in areas that have not been as badly
affected by the novel coronavirus outbreak. Maharashtra, the worst-hit state that reported more than 280 cases in 24
hours on Monday, opened up industries in an effort to get the economy moving. Around the world, countries have
started easing restrictions and help people get back to work. For a quick read on all the other news related to the pandemic,
here’s Mint Lite to bring you up to date with everything you need to know, and some things that you may not need to know
but are just fun to know, in five minutes before you start your.

1 FOOD, MONEY RUNNING LOW IN DHARAVI

A HEALTH WORKER holds up a vial containing a sample from a covid-19 swab test of a resident in Dharavi
(left), Mumbai. On Monday, at least 20 new cases were identified in the crowded locality that is home to 1 mil-
lion people. Residents have made their own barricades (right) to stay isolated though food and money are run-
ning low. The city municipal body has decided to administer hydroxychloroquine at scale to curb the spread.

2 SOME STATES TIGHTEN CONTROLS, SOME COVID-FREE FOR NOW

THE CENTRE on Monday said the covid-19 situation was “especially serious” in Mumbai, Pune, Indore, Jaipur and
Kolkata even as the total number of coronavirus cases crossed 17,600 countrywide. The Delhi government, meanwhile,
has increased the number of containment zones to 83; Kerala decided to change its mind about opening up and will stick
to all lockdown guidelines issued by the Centre; Manipur chief minister Biren Singh declared that his state was coronavi-
rus-free as both patients had recovered. Goa declared itself the first state free of covid-19 cases in India on Sunday.

3 FINANCE MINISTRY RELEASES STATES’ SHARE OF TAXES

THE FINANCE ministry has transferred ₹46,038 crore to the states as part of their share in central taxes and duties for
April to help them fight the covid-19 pandemic. Uttar Pradesh got the highest amount of ₹8,255 crore, while Bihar, Mad-
hya Pradesh and Maharashtra followed with shares ranging from ₹4,600 crore to ₹2,800 crore. Delays in transfers are
usually a pain point for states. The Centre is likely to adjust this amount against the actual amount realized once it has a
clearer picture of revenue for FY21, which are likely to be affected by the pandemic and the lockdown.

4 LOCKDOWN RULES EASE AROUND THE WORLD

EVEN AS restrictions were lifted partially in some states in India, around the world governments cautiously opened up
businesses after a prolonged closure due to the coronavirus outbreak. South Koreans have started returning to work and
to malls, parks and golf courses as the country relaxed social distancing rules. Germany, Norway and Czech Republic
lifted some restrictions on Monday. Germany has allowed opening of small retail spaces, car dealerships, cycling stores
and bookshops, while Norway has opened nursery schools. Iran has opened intercity highways and shopping centres.

5 90% STRANDED MIGRANT WORKERS UNPAID DURING LOCKDOWN

Running out of food and money
VOLUNTEER GROUP Stranded Workers Action Network sur-
110
veyed 11,159 migrant workers stuck in 25 states and found 90% 98.9 (in %)
100 95.9 Did not get govt rations
were neither paid by employers nor received government rations 90 89 89.6 Not paid during lockdown
between 8-13 April. Though the number getting cooked food 80
improved marginally, over 65% have not got food. About 79% of 70 80.3 69.4 Did not get cooked food
60
the surveyed are daily wagers who earn on average ₹400 a day. 8 Apr 13 Apr
Source: Stranded Workers Action Network

6 GUNMAN DISGUISED AS POLICE OFFICER KILLS 16 IN CANADA

A MAN disguised as a police officer has killed at least 16 people, during a 12-hour rampage in different parts of Canada’s
rural Nova Scotia province. Bodies have been found at multiple locations, and witnesses told news agencies that the gun-
man set buildings on fire and shot people as they ran out. Police killed the gunman, a 51-year-old man who owned large
properties in the area, after a car chase. Canada’s Public Safety Minister Bill Blair described the incident as “horrific” and
said it was “a truly heartbreaking day in Canada”.

7 VIJAY MALLYA LOSSES APPEAL AGAINST EXTRADITION IN UK COURT

LIQUOR BARON Vijay Mallya, who is wanted in India on alleged fraud and money laundering charges amounting to an
estimated ₹9,000 crore, has lost a high court appeal in the UK against his extradition to India. He now has 14 days to apply
for permission to appeal to UK’s Supreme Court. If he does not apply, he can be extradited to India within 28 days. Mallya,
64, has been on bail in the UK since his arrest on an extradition warrant in April 2017. The hearing in the UK against the
order was in February.

8 AIR POLLUTION LINKED TO 80% OF COVID DEATHS IN 4 COUNTRIES

HIGH LEVELS of air pollution may be “one of the most important contributors” to deaths from Covid-19, new research
has found. Scientists at Martin Luther University Halle-Wittenberg in Germany analysed coronavirus deaths in 66
administrative regions in Italy, Spain, France and Germany, and found that 78% of them occurred in the five regions with
the most polluted air. They examined levels of nitrogen dioxide, which has been linked lung disease, and which puts peo-
ple at risk if they contract covid-19. The new research was published in the journal Science Of The Total Environment.

9 WORLD’S LONGEST ANIMAL DISCOVERED IN AUSTRALIAN WATERS

SCIENTISTS EXPLORING the deep sea off Australia’s coast have discovered 30 new marine species, and possibly the
world’s longest animal. While exploring underwater canyons near Australia’s Ningaloo reef, they discovered a siphono-
phore—stringy, jellyfish-like predators that cling together and spread out and function as a single unit—measuring at
least 150ft (46m). Each unit, or zooid, cannot survive individually, but together, they become a predator that feeds on
plankton, and even fish. They believe this siphonophore may be the longest found so far.

10 GO ON A SOUTH AFRICAN SAFARI FROM YOUR SOFA

IF YOU’RE missing the great outdoors, luxury company andBeyond and wildlife broadcaster WildEarth are livestream-
ing a morning and an evening safari from South Africa’s Greater Kruger park every day in April for free. The game drives,
led by experienced guides, take you past impala, giraffes, elephants, hippos, hyenas, leopards and lions. Watch for the
stars, female leopard Thandi and male lion Scarface.
Curated by Shalini Umachandran. Have something to share with us?
Write to us at businessoflife@livemint.com or tweet to @shalinimb

PEANUTS by Charles M. Schulz

TELEGRAM t.me/indiaepapers
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MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 3 NO. 97 Rs 6.00 14 PAGES

UK COURT SAYS MALLYA

CAN BE EXTRADITED
A high court in the UK on Monday rejected former
UB Group chairman Vijay Mallya’s plea against his
extradition to India. The verdict marks a victory
for India’s investigating agencies, which have been
seeking his extradition since 2018 on charges of
TUESDAY, APRIL 21, 2020 fraud and money laundering. See Page 11
LIVEMINT.COM

First Day, First Tentative Steps

Companies remain hopeful of an early resumption of full operations after govt relaxes some shutdown curbs, but demand revival is still a key concern
m MINT GRAPHITI
Team Mint
feedback@livemint.com
ing Finance Ltd, said. While
ensuring seamless reopening JAMMING ON THE HIGHWAY Centre raps
GOA AND MANIPUR
COVID-FREE NOW
of supply-side bottlenecks
states for
A
s the country remains the top priority for INDIA
eased curbs to governments and industry

18,360 574 violations

allow some eco- alike, experts said the answer
nomic activity on to successful demand revival
Monday after an could well lie in addressing the Total cases Deaths
extended lockdown that began current logjam. Prashant K. Nanda &
on 25 March, companies, “The partial reopening of 3,031
Recovered
14,679
Active cases
Shaswati Das
many of them charting exit the economy is a big relief, par-
strategies from the lockdown, ticularly as trucks can run NEW DELHI
remained hopeful of a full and again and move goods to and GLOBAL

I
early resumption of opera- from factories and markets. ndia’s rural economy made a
tions. However, the immediate
On Monday, the Centre and resumption of highway tolling
several state governments par- and some states even talking
2,432,092Total cases
tentative restart in several
states on Monday, amid
reports of violations of social
tially lifted the lockdown in about raising toll charges is not distancing norms set in place to
non-hotspot areas, allowing good news,” said Sanjay Kir-
agriculture and allied indus- loskar, chairman of Kirloskar
tries to resume operations, set- Brothers Ltd and president of
166,794 Deaths
avoid contagion.
Work under the rural job
guarantee programme, crop
ting the stage for further relax- the All India Management harvesting and road construc-
ations in regions Association. 636,929 1,628,369 tion activities started in some
Recovered Active cases
where the effect “After a pro- parts of India after being stalled
Source: Union health ministry, states
of the pandemic longed stoppage, for 26 days.
has been rela- it is important to In Kerala, agricultural, fish-
tively less or nil.
While the
VIRUS EFFECT let things move
with minimal
FULL COVERAGE INSIDE ing and plantation activity was
allowed in parts of seven dis-
˜ Health insurance to get
phased lifting of friction and A traffic jam seen on NH-24 in New Delhi on Monday as the country began its staggered exit from the lockdown, which started on better, but more costly in the tricts, including Thiruvanan-
the lockdown is likely to costs. Having assured electric- 25 March. The Centre eased restrictions in some non-hotspot areas and allowed select economic activities to resume. RAJ K RAJ/HT near future P9 thapuram, Wayanad, Kotta-
restore supplies to pre-covid ity, fuel and food supplies are yam, and Idukki. “Kerala is
˜ Covid-19 pandemic casts a cloud
levels, demand revival at this critical to restoring life and making its way back into life.
juncture remains the key con- business,” Kirloskar added.
cern and is contingent on “The biggest challenge is on
FARMERS FACE AN UNCERTAIN HARVEST over HDFC Bank’s premium
valuation P4
From today on, some areas will
see relaxations. We are not past
enhanced government meas- the demand side and till the Pretika Khanna ˜ Plain Facts: Washing hands with the danger and must remain
ures to push growth, industry government gives a stimulus, pretika.k@livemint.com soap and water is a privilege in cautious. The lockdown must
executives said. demand will take time to PANIPAT, HARYANA Bharat P2 have made some of our life
“The government must look return,” said Sachit Jain, vice- ˜ Opinion: Those in panic need a skills rusty; take extra precau-

H
at how demand comes back to chairman of Vardhman Spe- arvester machines lumbered up the northern high- sense of perspective on this tion,” Kerala chief minister Pin-
the economy. They can look at cial Steels and a board member ways of Punjab and Haryana on Monday to a hesitant pandemic P10 arayi Vijayan said on Twitter.
tweaking the existing welfare of Vardhman Textiles. welcome by farmers. It’s day one of the easing of lock- In Puducherry, authorities
˜ Opinion: The perennial
schemes and releasing subsi- “Markets need to open up as down restrictions and this should have been good news for challenge of funding small and
said that 10,000 workers have
dies before the disbursement well, not just the factories. RBI India’s agrarian economy in the harvest season for the rabi medium enterprises P10 joined work under the
of loans and, I feel, this will needs to allow a bigger rate cut crop. Except that after nearly four weeks of the ongoing lock- Mahatma Gandhi National
ensure that business is and banks must transmit this down, rural India is staring at an uncertain future marked by ˜ Bollywood prepares for social Rural Employment Guarantee
restored in a short span of time reduction. The government a lack of farm hands, a delayed harvest and an absence of clar- distancing, hygiene practices Scheme (MGNREGS).
after the lockdown is lifted,” needs to inject an economic ity on social distancing norms that are hard to enforce on on film sets P7
“MGNREGA work, which pro-
D.S. Tripathi, managing stimulus,” Jain added. A farmer harvests wheat crop with his face covered on the ˜ Startup couples reinvent vides employment to the rural
director and chief executive TURN TO PAGE 11 outskirts of Jalandhar. HT business to stay relevant during
officer (CEO), Aadhaar Hous- TURN TO PAGE 11 lockdown P7 TURN TO PAGE 11

DON’T MISS
INFOSYS SUSPENDS GUIDANCE
Infosys suspended its practice of providing
an annual forecast for revenue and revenue
growth, citing the uncertainty over the
impact of covid-19. >P4
FMCG EXPLORES SUPPLY ROUTES
Consumer goods firms facing broken supply-
chain networks are forging new linkages with
food aggregators, hyperlocal apps and courier
firms to reach customers. >P7
FLATTENING CURVE IN KERALA
While the rest of India worries about the
number of days it takes for coronavirus
cases to double, in Kerala active cases are
plummeting.
KOTAK LOOKS TO TAP INVESTORS
Kotak Mahindra Bank is likely to tap its deep-
pocketed investors such as Canada’s CPPIB
and Singapore’s GIC to successfully close a
>P8 proposed fundraising plan. >P3
TATA MOTORS’ VOLUMES DROP
Tata Motors Ltd has reported that its global
wholesale volumes, including those of Jaguar
Land Rover, have declined 35% year-on-year
in the March quarter. >P5
CHINA TRAINS GUNS AT INDIA
China accused India of discriminatory
practices and demanded that it revise its FDI
norms, which were changed to prevent the
takeover of Indian firms. >P12

Private equity bets go Oil is dirt cheap, WTI falls to $10 FFC to hold meeting on stimulus
awry as covid-19 crisis Bloomberg & Utpal Bhaskar
NEW YORK/NEW DELHI
ground to a halt as govern- supply, it’s become too little
ments around the globe too late in the face of pandemic
Asit Ranjan Mishra
asit.r@livemint.com
time the finance ministry is
deliberating a stimulus pack-

disrupts valuations O
extend shutdowns to stem the lockdowns reducing global NEW DELHI age to stem job losses as a
il plunged to the low- swift spread of crude demand by result of the ongoing lock-

T
est level since 1986 as the coronavirus. This is the biggest about a third. he Economic Advisory down by helping companies
the coronavirus pan- Oil has faced its drop for West “There is little Council of the 15th stay afloat. While the Centre
demic ravaged global econo- own knock-on Texas to prevent the Finance Commission has extended the lockdown till
Ridhima Saxena ing ever bigger bets on Indian mies. effects with a physical market (FFC) will hold a two-day vir- 3 May, from Monday onwards
Intermediate
ridhima.s@livemint.com companies. In New York, West Texas market massively from the further tual meeting starting Thurs- it allowed the resumption of
crude since the
MUMBAI The sharp drop in the value Intermediate (WTI) dropped oversupplied and acute downside day to discuss the implications some economic activities,
of investments is bound to hurt by a staggering 43%, the most nowhere to store contract began path over the of the covid-19 pandemic on mostly in rural India. Most
trading in 1983

T
he market rout due to the overall returns for PE funds. It since the contract began trad- physical barrels. near term,” said economic growth in this fiscal 15th Finance Commission forecasters have significantly
pandemic has deeply will also delay exit timelines as ing in 1983, to $10.34 a barrel, D es pi t e t he Michael Tran, year and the next, and the chairman N.K. Singh. HT reduced India’s growth esti-
eroded the value of they may not sell their stakes at the weakest level since 1986. unprecedented m a n a g i n g stimulus required to shore up mate for FY21, with the Inter-
investments made by private depressed prices. In the imme- The plunge was exaggerated output deal by Organization of director of global energy strat- the economy. cuss possible assumptions in national Monetary Fund peg-
equity (PE) funds in listed com- diate aftermath of the stocks as the May futures contract the Petroleum Exporting egy at RBC Capital Markets. The meeting, which will be tax buoyancy during the two- ging it at 1.9%.
panies, undermining the confi- rout, some PE firms received expires on Tuesday. Countries (Opec) and allied presided over by FFC chair- year period.
dence of investors in the funds margin calls on loans availed by Economic activity has members a week ago to curb TURN TO PAGE 3 man N.K. Singh, will also dis- The meeting comes at a TURN TO PAGE 3
and potentially delaying their them against their portfolio of
exits. shares, forcing them to seek
Global PE restructuring of
giants such as The sharp drop in the loans, or sell
Blackstone, Bain the value of shares to pay off
Capital
Advent Interna-
and

tional as well as
investments is
bound to hurt
the loans.
“There will def-
initely be a huge
Tech grads now wait in the wings J&K’s women adapt to lockdown
overall returns for
homegrown ones impact on PE
such as Multiples private equity returns as the Romita Majumdar have to wait longer. Pooja Singh return to their homes in Uttar neurs in Jammu and Kashmir.
Alternate Asset funds portfolio value of romita.m@livemint.com “We have more than 30,000 pooja.s@livemint.com Pradesh because I didn’t It’s a state where curfews are
Management almost all the PE MUMBAI offers outstanding on trainee NEW DELHI know if they could travel common, internet services
have seen some of funds in India is recruits and on-campus safely, but they have been sus-

A J
their bets in listed companies likely to get slashed by at least large number of tech- recruits and we are going to ust before the nationwide needed money to These women are p e n d e d for
lose as much as half of their 15-20%, which implies that nology graduates who honour that. We expect that lockdown was announced send home,” she working out ways months and tele-
value. A similar situation is annual returns that they would had received job offers given the impact that the crisis last month, Sadia Mufti says. Her three- to offer online phone connec-
brewing in unlisted companies have otherwise made in 2020 at the beginning of the aca- has had on the university sys- went looking for N92 layered masks education and tivity is patchy,
too, where buyout funds have would now get completely demic year will have to wait tem, we are probably looking at masks for her family in Srina- and protective making doing
door-to-door
bet billions of dollars. washed out,” said Gopal longer as joining dates get post- their exams getting delayed to gar. “I couldn’t find any,” says coveralls—all business a true
The crisis in the PE industry Agrawal, co-head, investment poned because of the coronavi- June, July or something, but the 28-year-old fashion approved by the delivery of challenge. The
follows an almost decade-long banking, Edelweiss. rus pandemic. immediately after that, we will designer and owner of the city government services covid-19 health
boom in mergers and acquisi- India’s largest software and IT firms delay hiring freshers start bringing them on board,” popular Hangers boutique in hospital—are crisis has just
tions, with buyout firms plac- TURN TO PAGE 3 IT services company Tata Con- due to the pandemic. MINT said Rajesh Gopinathan, chief Srinagar’s Jehangir Chowk. priced at ₹12 and added another
sultancy Services (TCS) has fro- executive officer (CEO) and That’s when she decided to ₹300 respectively. Till date, layer of complexity.
NOTE TO READERS The Media Marketing Initiative on
Page 5 is the equivalent of a paid-for advertisement, and no Mint
journalists were involved in creating it. Readers would do well to
treat it as an advertisement.
zen increments and lateral hir-
ing and has said it will continue
to hire fresh graduates. How-
ever, with examinations on
hold and TCS suspending its
accelerated on-boarding proc-
ess in the first two quarters of
the fiscal year, freshers might
TELEGRAM t.me/indiaepapers
managing director, TCS.
IT companies are hiring

TURN TO PAGE 3
use her resources to make
protective gear for both resi-
dents and medical staff. “I
didn’t want my six tailors to
they have made 15,000 masks
and 1,200 coveralls.
Mufti is among a small
number of women entrepre-
But these entrepreneurs
are adapting and working out

TURN TO PAGE 11
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02 TUESDAY, 21 APRIL 2020

MUMBAI
PLAIN
FACTS

HANDWASHING A PRIVILEGE IN INDIA

Official data shows that a majority of rural households in India do not use soap and water to wash their hands, mainly due to lack of access to water
Aakanksha Arora &
m MINT GRAPHITI
Chart 2a Chart 3
Chart 1
Aasheerwad Dwivedi Four in 10 Indians don't regularly use A large segment of rural India doesn't India lags behind in access
use soap and water to wash hands to water on premises Myanmar
soap and water to wash their hands 37
feedback@livemint.com Households with water on the
Share of households (in %) Urban Rural India
Share of population (in %) premises (in %) 66

A
s India starts Water only Water and Soap and Nepal
relaxing the 69
cleaning agent water
nationwide lock- other than soap Bangladesh 76
down, rural areas
will see greater 80 South Africa 78
benefits compared to urban
India. Fewer covid-19 cases No soap Indonesia 78
have been detected in rural or water
19
areas so far but unless agricul- Philippines 80
tural activity resumes in villa- 23
13
ges, rabi crop harvesting will Low 11 Pakistan 82
income
suffer. 12 3 49
One key challenge in ensur- People with basic
Vietnam
ing the virus does not take handwashing 3 83
facilities including 35
hold in India’s populous coun- soap and water Bangladesh
as of 2017 Chart 2b
tryside will be to ensure ade- Chart 4
quate hygiene and hand- Handwashing limited among the poor Access to water is limited in some
washing practices. Official 44 and among those with poor schooling of India's poorer states
South Africa
data suggests that access to Households who wash their hands with (in %)
48 Share of rural households with
water, and the practice of Nepal Soap Water and
exclusive access to principal
and cleaning Water No soap
hand-washing is significantly water agent other only or water source of drinking water on their
lower in rural parts. than soap premises (in %)
Compared with some Asian 60 60 57 57 South Asia Lowest 24 23 20 21
peers, the share of Indians who India Lower middle Second 43 14 23 13
Wealth
index

wash their hands regularly Pakistan income Middle 60 7 21 7

with soap and water is low. But 64
Indonesia Fourth 78 3 14 3
when compared with the aver- Highest 93 1 5 1 Jharkhand
age for lower middle income 19.1
No schooling 43 15 22 14
Education of the
household head

countries, the share is slightly

< 5 years 51 10 21 12 Odisha
< 40
higher (See chart 1). 79 14.8
79 5-7 years 59 9 18 9 40 - 70
The aggregate figure, how- Philippines 70 - 85
8-9 years 64 9 15 7 Andhra Pradesh
ever, hides deep disparities. 84 Myanmar 18.9 > 85
10-11 years 75 6 12 4
Data from the last National 86 Thailand
Family Health Survey (NFHS) 12 or more years 85 4 7 2
Vietnam Source: World Bank, NFHS 2015-16, DHS Statcompiler, NSS (2018)
conducted in 2015-16 shows a
AHMED RAZA KHAN/MINT
majority of rural households
not washing their hands with education is alarmingly poor, Many among the unedu- (usually women) (NSS) report on premises. some of the southern states of rural India.
soap and water regularly. In with only 43% washing their cated and the poor don’t have to go out to fetch Limited access to drinking water Across states, there are wide (See chart 4). If the gains from the lock-
urban India, the proportion hands with soap and water. In access to water. water from com- water and lack of and sanitation variations in water access, with Across states, rural areas down were to be sustained,
was much lower. Hand-wash- contrast, in households Data from the latest Demo- mon or public hygiene could based on a 2018 both rural and urban house- have lower access to a drinking these issues would require
ing practices are much more headed by those with at least 12 graphic and Health Surveys water sources, hinder the fight survey shows that holds of relatively poor states, source in their premises com- urgent attention.
rare among the poor than the years of schooling, 85% wash (DHS) across countries shows making physical against covid-19 in only 49% of rural such as Odisha, Jharkhand, pared with urban areas. Aakanksha Arora is a deputy
rich and among the hands with soap and water (See that India lags behind peers in distancing diffi- households had Chhattisgarh, and Madhya Limited access to water and director at the ministry of
several parts of
unschooled compared to the charts 2a and 2b). access to drinking water on cult. exclusive access Pradesh, having limited access the absence of hygiene could finance and Aasheerwad Dwiv-
better-educated. Hand But it is not just lack of edu- premises (See chart 3). Data from a rural India to a primary to drinking water. Water avail- pose significant challenges in edi is an assistant professor at
hygiene among families cation or health awareness The lack of water availabil- recent National source of drink- ability on premises also the fight against the coronavi- the Delhi-based Shri Ram Col-
headed by those without any that drive these disparities. ity in the house forces people Sample Survey ing water on their appears to be relatively low in rus pandemic in several parts lege of Commerce

m TWITTER DASHBOARD Trade barriers raise coronavirus risks

ANIRUDDHA CHOWDHURY/MINT
Who are the most influential Indian political leaders on Twitter? How active were they last week? What resonated with their Nikita Kwatra
followers the most? Presenting the Mint dashboard of Twitter activity, which uses data extracted from the micro-blogging
vulnerable to changes in poli-
website to answer these questions for 20 most followed leaders across four categories in the political firmament
nikita.k@livemint.com cies by these exporters.
MUMBAI Any restriction on key cov-
Tweets and retweets Followers (in million) id-19 products could severely

A
Most retweeted Last Weekly Last Weekly s covid-19 virus spreads restrict their access to medical
Politician Party topic week change week change globally, developing supplies and other critical
countries are facing a products.
MEMBERS OF PARLIAMENT - TREASURY
more severe humanitarian cri- The World Health Organiza-
NARENDRA MODI PM's address to the nation, extending the lockdown 67 -30.9% 55.36 0.0%
BJP sis compared to their more tion covid-19 Disease Commu-
@narendramodi
developed counterparts. Yet, nity Package (DCP) contains 17
AMIT SHAH* PM's address to the nation, extending the lockdown 31 34.8% 19.13 1.3%
BJP these are the economies which products that are considered
@amitshah
could face a greater shortage of key to deal with the current cri- High imports of coronavirus-related medical supplies from a few
RAJNATH SINGH coronavirus-re- sis. They include exporters makes developing countries extremely vulnerable to
BJP PM's address to the nation, extending the lockdown 12 -36.8% 16.50 0.8%
@rajnathsingh
lated medical
SMRITI IRANI products.
m SNAP FACT essential items for
diagnosis and
changes in policies by exporters, shows a study.
BJP PM's address to the nation, extending the lockdown 400 -13.6% 10.91 0.5%
@smritiirani A new VoxEu treatment such as Solution (WITS). retaliatory restrictions, prices
SUBRAMANIAN SWAMY article authored by Alvaro enzymes, hygiene products like They argue that such of covid-19 relevant goods
BJP Sharing an article on him saving Sethusamudram project 256 -7.6% 8.82 0.6%
@Swamy39 Espitia of World Bank and oth- soaps and sanitizers, and per- restrictive measures also push could increase by 23% on aver-
MEMBERS OF PARLIAMENT - OPPOSITION ers shows that the 20 most-af- sonal protection equipment prices of essential medical age, the authors suggest.
RAHUL GANDHI* flicted developing countries including gloves and medical products higher by reducing As the number of covid-19
INC Asking govt to save Indian firms from Chinese takeovers 17 70.0% 13.27 1.5% (which includes India) are masks. global supply. They estimate infections rise in developing
@RahulGandhi
dependent on just five coun- Of these, medical masks are current export restrictions to countries, such trade protec-
SHASHI THAROOR German prez shunning references to covid-19 as "war" 183 3.4% 7.46 0.3%
INC tries—the European Union, the most affected by current increase prices of medical tionism can cost thousands of
@ShashiTharoor
US, China, Japan and Korea— restrictions, the authors show. masks by 20.5% and of other lives, the authors argue.
KAPIL SIBAL Criticizing govt measures to tackle the pandemic 6 50.0% 2.43 1.3% for 80% of their imports of criti- The authors’ analysis is based protective equipment such as Also read: Trade and the cov-
INC
@KapilSibal
cal covid-19 products. As such, on data sourced from World aprons and gloves by 1-2%. If id-19 crisis in developing coun-
SHARAD PAWAR Remembering B.R. Ambedkar on his birthday 39 -40.9% 1.65 1.2% these economies are extremely Bank World Integrated Trade these restrictions are met with tries (bit.ly/3cuWNCc)
@PawarSpeaks NCP

DEREK O’ BRIEN TMC Kolkata Police acting against a fake video on FB 83 -30.8% 1.21 0.0%
@derekobrienmp
CHIEF MINISTERS
YOGI ADITYANATH PMO India, on PM's address to nation on 14 April 20 -20.0% 8.15 3.4%
@myogiadityanath
BJP
NEWS IN NUMBERS CORRECTIONS AND
NITISH KUMAR*
JD(U) State releasing ₹50 cr to help stranded people 15 7.1% 5.39 0.7% CLARIFICATIONS
REUTERS
@NitishKumar
737,872 16 Mint welcomes comments,
MAMATA BANERJEE TMC Extending greetings on Bengali New Year 12 20.0% 4.03 0.0% What is it? The number of tennis fans who What is it? The suggestions or complaints
@MamataOfficial attended the main draw of 2019 US Open number of people about errors.
VIJAY RUPANI BJP PM Modi's address to the nation, extending the lockdown 29 -61.3% 2.60 0.8% at the Billie Jean King National Tennis killed in a mass
@vijayrupanibjp Readers can alert the
Center, New York. shooting in Nova
newsroom to any errors in the
UDDHAV THACKERAY SHS Maharashtra CM's address to the state 9 -59.1% 0.39 11.4% Why is it important? While the 2020 US Scotia in Canada. paper by emailing us, with your
@OfficeofUT Open is still four months away, there are Why is it full name and address to
PARTY CHIEFS questions on whether it will take place due important? The feedback@livemint.com.
ARVIND KEJRIWAL to concerns around the coronavirus rampage which
AAP Jwala Gutta quoting lines from Sare Jahan Se Accha 70 37.3% 18.11 1.1% pandemic. One option is to conduct the went on for 12 It is our policy to promptly
@ArvindKejriwal respond to all complaints.
AKHILESH YADAV
tournament without a live audience. The hours took place in a country that has Readers dissatisfied with the
SP Bring people of UP stuck in different states in lockdown 13 30.0% 11.34 0.6% US Tennis Association said while that is strict gun controls. It also comes during a
@yadavakhilesh response or concerned about
not off the table, it’s highly unlikely. The lockdown as Canada fights covid-19. Mint’s journalistic integrity may
CHANDRABABU NAIDU
TDP Video of nurses with a baby whose mother has covid-19 29 -34.1% 4.62 0.2% decision will be taken by June. Tell me more: The previous mass write directly to the editor by
@ncbn sending an email to
Tell me more: The US Open was set to shooting that had similar casualties took
NAVEEN PATNAIK Greetings on Odia New Year 19 5.6% 2.74 0.7% begin on 31 August. The city has seen more place in December 1989 in a Montreal asktheeditor@livemint.com
BJD
@Naveen_Odisha
than 12,600 confirmed cases and 10,000 school. It resulted in 15 deaths, including Mint’s journalistic Code of
KT RAMA RAO Transfer 1,500 each to 74 lakh accounts 268 -16.8% 2.20 2.3% deaths so far. that of the perpetrator.
TRS Conduct that governs our
@KTRTRS newsroom is available at
*Appear in multiple categories, included in most relevant role. www.livemint.com
Data for the week to midnight of 18 April Data compiled by howindialives.com Data and text compiled by Howindialives howindialives.com is a search engine for public data

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NEWS TUESDAY, 21 APRIL 2020

MUMBAI 03

PE bets go awry
Existing foreign investors
mint

SHORT TAKES as covid-19

crisis disrupts
Alibaba to invest $28 bn in cloud
infra after virus boosts demand
Shanghai: Alibaba Group Holding Ltd said it will invest 200 bil-
lion yuan ($28 billion) in its cloud infrastructure over three years
may drive Kotak fund raise valuations
—a plan that follows a boom in demand for business software as FROM PAGE 1
the coronavirus outbreak peaked in China. The Jack Ma-led com-
pany said in a statement it will spend the funds on semiconductor Indian stocks fell nearly 23%
and operating system development as well as building its data CPPIB and CDPQ, Singapore’s GIC are likely to close a proposed investment plan in March as the outbreak trig-
centre infrastructure. While most of China’s white collar employ- gered panic selling. While the
ees were working from home throughout February, the country’s benchmark Sensex has
dominant cloud player saw usage surge for its software, most Swaraj Singh Dhanjal & rebounded nearly 7% in April
notably DingTalk, a workplace chat app used by both businesses Deborshi Chaki from its March-lows, some of
and schools. At one point, users complained of lags on the app the large PE transactions in
due to the high volume of activity. The company acknowledged MUMBAI listed companies over the last
the issues on Weibo, the Chinese social networking site.REUTERS three years continue to trade

K
Why otak Mahindra Bank Ltd
organizatio
ns should be
is likely to tap its deep-
Electric vehicle sales in India up wary of pocketed investors, such
as Canadian pension
20% in FY20, says SMEV Maze
ransomware funds and Singapore’s
?
state investment arm, to success-
bit.ly/3briCSY fully close a proposed fundraising
plan, two people aware of the
development said, requesting ano-
nymity.
The move is aimed at bolstering
the balance sheet of India’s fourth
largest private lender and to pare
the promoter stake, they added.
Mint reported on Sunday that the
bank plans to sell shares worth
almost ₹8,000 crore.
Canada Pension Plan Investment
Board (CPPIB) and Caisse de dépôt
New Delhi: Sales of electric vehicles (EVs) in the domestic et placement du Québec (CDPQ)
market increased by 20% to 156,000 units in fiscal year hold stakes of 6.03% and 1.15%,
2020 (FY20) on the back of a rise in sales of electric scoot- respectively, while Singapore’s GIC
ers. In FY19, sales of such zero-emission vehicles stood at has a 1.36% stake, shows the latest
130,000 units, according to data released by the Society of available shareholding pattern of
Manufacturers of Electric Vehicles (SMEV). The Union Kotak Mahindra.
government had in FY20 introduced a subsidy worth In a regulatory filing on Sunday,
₹10,000 crore through the FAME (Faster Adoption and the bank said its board will meet on
Manufacturing of Electric and Hybrid Vehicle) scheme, to 22 April to approve a plan to raise
promote local manufacturing of EVs. Sales of electric equity through a private place-
scooters increased by 20.6% year-on-year to 152,000 units, ment, follow-on public offering
while e-bus sales jumped 50% to 600 units. Sales of electric (FPO), or a qualified institutional
cars declined by 5.5% to 3,400 units. The lobby group did placement (QIP).
not include sales of low-cost electric three-wheelers in its The first person said the bank is
data. According to SMEV, electric scooters formed almost likely to take the QIP route. “They
97% of the electric two-wheelers sold in FY20 and a very have had conversations and the
small volume of motorcycles and electric cycles made up Canadians and GIC will likely par-
the rest. MALYABAN GHOSH ticipate in the fundraise.”
Kotak Mahindra Bank had last
far below their investment
value. According to Mint’s cal-
culations, some of the worst
affected include global PE firm
Advent International’s Sep-
tember 2019 investment in
financial services firm Aditya
Birla Capital Ltd, whose value
has shrunk by more than half to
₹534 crore as on 20 April. Simi-
larly, American asset manager
Blackstone’s investment in Kis-
hore Biyani-led Future Lifes-
tyle Fashions Ltd in November
last year has fallen over 70% to
The proposed fund raise will help Kotak Mahindra Bank bolster its balance sheet and reduce promoter ₹150 crore from its initial
shareholding as per RBI rules. PRADEEP GAUR/ MINT investment value, while Bain
Capital’s 2017 bet in Axis Bank
raised primary capital through a tain a 9% capital adequacy ratio brought down his stake by about Ltd has declined over 15% in
QIP in March 2017. (CAR), which is the ratio of a len- 3.3% through a mix of primary and value to nearly ₹5,776 crore.
Email queries to Kotak Mahindra der’s capital as compared to its risk secondary share sales. “In our view, we will see a lot
Bank, GIC and CDPQ did not elicit weighted assets (cash, loans, invest- In January, Kotak Mahindra more PIPE (private investment
any response till press time. Mean- ments) and current liabilities (taxes, Bank and the RBI had reached an in public equity) transactions
while, A spokesperson for CPPIB interests, expenses, deposits). agreement, wherein Uday Kotak by volume, if not by value, in
said that it does not agreed to reduce his 2020 as compared to last year.
comment on FUNDING PLANS stake to 26% by July- While some PE firms that
rumours and spec- August. In the invested in PIPE deals as a part
ulations. THE BANK in a THE stake of LENDER is likely to meantime, the pro- of their strategy will continue
The proposed regulatory filing said promoter Uday
Kotak must be
take the qualified
institutional
moter’s voting to remain active, we now
fundraise will help its board will meet
on 22 April to lowered to 26% placement path for rights were reduced expect even those funds that
the bank raise cap- approve a plan before September the fundraise in a graded fashion: did not earlier invest in PIPE
ital for business 20% of the paid-up deals to now look at this oppor-
growth in the post- voting capital till 31 tunistically as these assets are
covid-19 economic recovery, The stake of promoter Uday March and 15% from 1 April 1 now available at significantly
besides bringing down its promoter Kotak has to be lowered to 26% onwards. The agreement also cheaper valuations,” said Vivek
shareholding in compliance with before September. The bank’s capi- ended a bitter court battle between Soni, partner and national
the Reserve Bank of India (RBI) tal adequacy ratio is at 18% at the bank and the regulator. leader, private equity services
norms. Banks are required to main- present. In 2017, Kotak had swaraj.d@livemint.com at EY.

Oil is dirt cheap, WTI Finance panel to meet on fiscal stimulus

falls to $11 per barrel
FROM PAGE 1
“Refiners are rejecting barrels
at a historic pace and with US
storage levels sprinting to the
brim, market forces will inflict
further pain until either we hit
rock bottom, or covid clears,
whichever comes first, but it
looks like the former.”
The low energy price
regime could put a majority of
US shale oil producers out of
business in the run-up to the
US presidential elections in
November.
“April is expected to be the
bleakest month for the indus-
try, with demand set to plum-
met by 29 million barrels a day Pandemic lockdowns have
compared with the same reduced global crude demand
month last year,” International by about a third.
Energy Agency said in a state-
ment.
The depressed energy pri- the average of Oman, Dubai
ces come despite the largest and Brent crude, was $20.56 a
BLOOMBERG
ket of crude, which represents
FROM PAGE 1
The meeting will be
attended by the members of
the FFC and five members of
the council, including chief
economic adviser in the
finance ministry Krishnamur-
thy Subramanian, prime min-
ister’s economic advisory
council member Sajjid Z. Chi-
noy, and Prachi Mishra, Neel-
kanth Mishra and Omkar Gos-
wami.
Earlier on 7 April, the FFC
also reviewed the emerging
economic scenario and uncer-
tainties about macroeconomic
variables. “The issue of state
finances being under strain
and representation received
by the FC was also reviewed. It
was decided to work on alter-
native scenarios and on other
parameters notwithstanding
the current uncertainties,”
FFC said in a series of tweets.
While states have per-
formed better than the Centre,
remaining well within their
With oil prices plunging and a nationwide lockdown reducing
consumption, states’ tax revenues are set to fall.
domestic product (GSDP), the
combined fiscal deficit of
states has started rising since
2017-18, touching 2.9% of
GSDP in 2018-19, which is
expected to hit the upper ceil-
ing of 3% of GSDP in 2019-20,
according to projections by
rating agency Moody’s.
States at the forefront of the
battle against the escalating
covid-19 pandemic in the
country are staring at fiscal cri-
ses with shrinking revenues
AP
reducing consumption, their
own tax revenue is set to fall.
State governments have been
making representations to
both the FFC and the Centre to
allow them to borrow more in
FY21 to meet their financing
needs. However, the market
borrowing cost for the states
has risen significantly due to
front-loading of borrowing by
many states.
Pronab Sen, a former chief
statistician of India, said under
at 50 basis points higher cost
than the market interest rate.
“This has been the norm until
the FRBM came into place.
The Centre and the Finance
Commission need to think of
this formula to decrease bor-
rowing cost of states,” he
added.
The FFC has assumed a
nominal GDP growth and
buoyancy for the Centre’s
gross tax revenues at 11% and NBFCs and MFIs’ ability to borrow has been hit by the
1.14%, respectively, for FY21 securitization freeze. SUNIL GHOSH/HT
which most analysts consider
as overestimations.
This has implications for the
projected share of the central
Loan securitization
taxes for states in the current
fiscal and the estimation of
revenue deficit grants for indi-
by NBFCs, MFIs hit
vidual states.
Madan Sabnavis, chief
economist at Care Ratings,
said the Centre has to ensure
by quality concerns
fiscal transfers to states on
time through borrowing or by Swaraj Singh Dhanjal ity once all offices resume
relaxing FRBM norms for two swaraj.d@livemint.com work after the nationwide
years. “Centre can contribute MUMBAI lockdown is lifted.
to state schemes otherwise. The freeze in securitization

S
ever production cut by Opec barrel on 17 April, according to FRBM (fiscal responsibility and rising demand for resour- the current circumstances, the But for sure we need to be flex- ecuritization of loans by transactions has come on the
plus, which includes Russia; the Petroleum Planning and and budget management) ces. With oil prices plunging Centre should borrow from ible with FRBM this year,” he small non-banking back of concerns of investors
thereby ending their high- Analysis Cell. limit of 3% of gross state and a nationwide lockdown the market and lend it to states added. financial companies that loans given by NBFCs
stakes game of flooding the The cost of the Indian bas- (NBFCs) and microfinance and MFIs may turn bad
global markets amid the cov- ket of crude, which averaged institutions (MFIs) has seen a because of the covid-19-led
id-19 pandemic. $56.43 per barrel in 2017-18, sharp fall as the impact of cov- slowdown.
With Opec accounting for registered an average of id-19 and moratorium rules is “Most investors in securiti-
80% of India’s crude oil $54.563 in February. The cost keeping investors away. zation transactions have put
imports, any production cut by was $33.36 in March.
the so-called Opec plus India has been a proponent
arrangement impacts India’s of affordable energy prices and
Tech graduates now wait in the wings Securitization involves on hold investments in antici-
pooling of loan assets and sell- pation of deterioration of
ing to investors, such as asset quality because of
energy security efforts in the made a case for the same at banks, mutual funds and oth- expected delay in collections.
short run. G20 energy ministers’ meet- FROM PAGE 1 agement because of covid-19 ers, which helps NBFCs and Most investors believe the
“Stepping ing earlier this concerns,” said Kris Lakshmi- micro lenders to mobilize pandemic has triggered wide-
away from a The low energy month. more freshers for sometime kanth, founder chairman and capital for growth. Generally, spread deterioration in
destructive price price regime “The plunge in now as that helps reduce costs, CEO, Headhunters India. these are exe- income across
war, the return to could put a demand would be and have fewer experienced Lakshmikanth said that cuted through Many have put on the country and
market manage- majority of US even more dam- mid-level associates overseeing many new joinees being the pass-through hold investments the credit profile
ment by Saudi aging for the a wider base of employees with trained have already been certificates in anticipation of a large number
Arabia and Rus-
shale oil industry and the 1-3 years’ experience. Compa- requested to go home because (PTC) route. of a fall in asset of sectors and
sia backed by the producers out of millions of people nies including TCS, Accenture, it is not possible to give them Northern Arc
US and a very business it employs around
quality due to an e n t i t i e s has
Tech Mahindra Ltd, Infosys work and have someone to Capital, which become vulnera-
involved Presi- the world without Ltd and Wipro Ltd have robust supervise them while much helps NBFCs and expected delay ble,” said Fernan-
dent Trump, the historic online on-boarding pro- critical work is pending. MFIs access the in collections des.
marks a physical and psycho- recent steps announced by grammes in place, and can vir- Of course, when companies debt capital mar- The Reserve
logical inflection point for the OPEC+ and G20 countries…. If tually on-board and train fresh- are struggling to permit remote ket, has seen a Bank of India
oil market,” Roger Diwan, vice production falls sharply, some ers if required. Companies such work for critical projects given sharp dip in fundraising activ- (RBI)’s announcement of a
president, financial services, oil goes into strategic stocks as TCS and Accenture have their contract terms and falling ity since the last week of three-month moratorium on
IHS Markit added in a state- and demand begins to recover, already indicated that they will While TCS had planned to hire 39,000 fresh graduates in FY21, demand, fresh recruits are not March, according to Kshama term loans has also soured
ment. the second half of 2020 will honour offers. Wipro had said it will hire around 20,000 freshers. BLOOMBERG the top concern, another hiring Fernandes, managing investor sentiment.
Oil prices had touched an see demand exceed supply,” According to Nasscom, the industry executive said. director and chief executive Many investors have come
all-time high of $147 per barrel the International Energy industry hired 205,000 new for FY21, Wipro had said it will wala said the company had “On the other hand, this of the platform. forward to provide approvals
in July 2008. Agency statement added. employees in FY20. The sector on-board around 20,000 fresh hired 12,000 people last fiscal might be the best time to learn “Since 24 March, we have to the servicer to align their
Low energy prices bring With global oil demand employs close to 4.5 million graduates, while HCL Technol- but is now looking at a deferred new skills, especially for tech- seen an 80% drop in approval moratorium policy for loans
good tidings for major con- plunging due to the rapid people. The largest employer ogies indicated 15,000 fresh the hiring schedule. nologies related to network of on-balance sheet financing in the managed book as well,
sumers such as India. But with spread of the deadly coronavi- in the sector, TCS, added hires in FY21. All these initia- “Overall job scenario is grim security, cloud migration and products and a complete drop but some are concerned about
the world’s second most popu- rus, prices have been in a tail- around 30,000 fresh graduates tives were announced in the now across all levels as almost collaborative tools as nobody in demand for purchase of the lack of clarity on whether
lous country cooped indoors, spin, giving an opportunity for
there is hardly any demand for India’s ambitious and costly
fuel. Indian Strategic Petroleum
The cost of the Indian bas- Reserves programme.
in FY20. In the March quarter,
TCS said it will increase this
number to 39,000 in FY21.
Infosys has made 18,000 offers
third quarter before the virus
outbreak.
In an earnings call last week,
Wipro CEO Abidali Neemuch-
TELEGRAM t.me/indiaepapers
50% companies have requested
to put new recruitment on hold
for two-three months even
across middle and senior man-
will be in a hurry to go back to
physical offices,” the person
mentioned above said on con-
dition of anonymity.
asset pools via securitization they can approve such mora-
and direct assignments,” she torium to retail loans pur-
said. Northern Arc expects to chased by them via a securiti-
see a possible pick up in activ- zation, said Fernandes.
 Get Stock Market Updates from Telegram app: https://t.me/KittusWealthJourney

04 TUESDAY, 21 APRIL 2020

MUMBAI

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

31,754.01 0.52 9,261.85 -0.05 7,614.60 0.00 23,395.40 -0.50 9,442.60 -0.12 11,906.98 0.70 10,937.83 1.27
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

31,588.72 32,056.19 9,266.75 9,390.20 7,614.40 7,712.20 23,513.70 23,726.60 9,453.50 9,573.75 11,824.07 11,970.42 10,800.91 10,947.47
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

32,056.47 31,490.26 9,390.85 9,230.80 7,712.40 7,602.10 23,730.10 23,371.25 9,574.20 9,416.85 11,972.39 11,802.48 10,985.08 10,851.02

Infosys has suspended guidance;

mint

SHORT TAKES
US corporate cash spending
cuts may be at a record
The biggest US companies will slash their cash
spending this year amid the uncertainty of the
it speaks volumes on covid impact
coronavirus pandemic, according to Goldman
Sachs Group Inc. “We forecast S&P 500 cash R. Sree Ram & Mobis Philipose 2021 quarter. Investors were whether or not there will be a second
spending will decline by an annual record 33% sreeram@livemint.com enthused about this clarity of vision, wave of infections...” Changing fortunes
during 2020 as firms prioritize liquidity in a wor- and TCS shares have rallied 6% since Parekh added: “There is no clear The gap between revenue growth rates of Infosys and Tata Consultancy

A
sening economic environment,” wrote strategists s long as we can remem- its results announcement. view. There will be some sort of reces- Services has expanded further in Q4 FY20.
led by David Kostin in a note. He continues to ber, Infosys Ltd has pro- But as one industry analyst points sionary environment, although we Constant currency revenue growth (year-on-year in %)
Infosys TCS
expect a big decline in earnings per share (EPS) for 25% vided guidance either on out, “No guidance is the best gui- don’t know the duration of how long 14
workforce
the first and second quarters. He noted that “most saw fall in
annual revenue or reve- dance in these times. There is no way it will last.”
12
investors are already looking ahead to 2021 EPS”. incomes in nue growth in constant to know how things will play out.” In short, things are really uncertain
The impact of the pandemic fuelled a drop of as India: currency terms. It has suspended this Indeed, many large global corpora- for Indian IT firms, and it is clearly 10
much as 34% in the S&P 500 from its record high LinkedIn practice temporarily citing uncer- tions have withdrawn guidance, cit- premature for investors to breathe a 9.3
survey 8
on 19 February to 23 March. But it has rallied 28% tainty over the impact sigh of relief. 6.4
6
since then, as governments and central banks glo- bit.ly/2yrTXz9 of covid-19 and the IN THE DARK Coming to Q4 6
bally have been rolling out measures to try to keep related lockdowns results, the impact on
4
the financial system operating. BLOOMBERG across the world. NO guidance by Infy INFOSYS ended the INVESTORS, left revenue was greater 3
This is quite the shows uncertainty is year with a slightly
high; premature for better exit rate than
groping in the dark,
have reason to worry
than what the Street 2
opposite of what Tata investors to breathe TCS, as growth rates about valuations of had anticipated. While 0
Consultancy Services a sigh of relief have been higher Indian IT stocks analysts were expect- Q1 FY19 Q4 FY20
Rising unemployment Ltd (TCS) did late last ing sequential growth Source: Companies
Hong Kong’s jobless rate has climbed to the week. While TCS has of about 0.6%, the com- NAVEEN KUMAR SAINI/MINT
highest since October 2010.
never provided guidance, its post-re- ing the lack of clarity owing to the pany reported a decline in revenue of constant currency). The exit revenue umes will impact its employee utiliza-
Hong Kong unemployment rate (in %)
4.4 sults commentary suggested revenue ongoing lockdowns and continued 0.8% in constant currency terms. run-rate now implies flattish reve- tion rates and profitability. The com-
4.2
4.3 4.2 will decline sharply in the June quar- spread of the virus. On a year-on-year basis, Infosys’s nues for FY21 when annualized (exit pany has also received requests for
4 ter in a range similar to that during Salil Parekh, chief executive and growth of 6.4% in constant currency revenue run-rate for TCS implies a payment deferments and price dis-
3.8 the global financial crisis. It added managing director of Infosys, said in was ahead of TCS’s 3% growth by 1.2% decline),” said Investec Capital counts, which will also hurt margins.
3.6
that its internal models assume a his post-results commentary, “Obvi- quite a margin. It also ends up with a Services (India) Pvt. Ltd in a note. Of course, no one knows how bad
3.4
recovery in the second half of the ously, there will be an impact in Q1, better so-called exit rate of revenue. Nevertheless, the near-term the hit can be. Investors, left groping
3.2
3
year, with revenue and profitability but we have to see how things pan “Infosys reported a 1.4% sequential impact on earnings is expected to be in the dark, have reason to worry
2.8 being flat year-on-year by the March out, especially on the medical side— drop in dollar revenues (-0.8% QoQ in huge. The sudden slowdown in vol- about valuations of Indian IT stocks.
2.6
31 Jul 2010 31 Mar 2020
Source: Census and statistics department Hong Kong, Bloomberg

SANTOSH SHARMA/MINT

Hong Kong joblessness up

to highest in nearly decade
Lockdown spoils usual summer Covid-19 pandemic casts a cloud over
Hong Kong’s jobless rate rose for a sixth straight
month in March to the highest level since October
2010, as restrictions to control the coronavirus
party for air conditioner makers HDFC Bank’s premium valuation
outbreak continue to pressure the city’s battered
economy. The unemployment rate increased to
4.2% for the January-to-March period, higher Vatsala Kamat Aparna Iyer Indeed, the bank’s management But HDFC Bank is not alone in its
than the median estimate of 4% among econo- vatsala.@livemint.com Seasonal break-up aparna.i@livemint.com said in a call with analysts that exposure to this risky asset class. Its
mists surveyed by Bloomberg. The jump extended Air conditioner sales in retail markets and for companies peak between mid-March and mid-April, peers such as ICICI Bank Ltd, Axis
in the June quarter due to the hot summer season.

C H
the longest stretch of increases since the after- ovid-19 has spoilt chan- DFC Bank Ltd’s stock has when the lockdown was in force, its Bank Ltd and even Kotak Mahindra
math of the global financial crisis. The underem- ces of a summer Sales (in %) gained roughly 23% since small business loans have suffered. Bank Ltd have large exposures.
ployment rate climbed to 2.1%, the highest in bonanza for domestic 50 Secondary (retail) the 21-day nationwide lock- At risk is also its historic strong So, what could be HDFC Bank’s
almost a decade. Year-on-year declines in total air conditioner (AC) manufac- 45 Primary (company) down was announced on 24 March loan growth, which has been Achilles heel?
employment and the labour force widened fur- turers. The firms had to first to stem the spread of covid-19. 18-20% every quarter. A month before the
ther to 3.6% and 2.2%, respectively, both the high- grapple with the supply chain 25 India’s most valuable private sector Analysts now expect At risk is its strong l o c k d o w n was
est on record, said the government in a release on disruption in China and cost- 20 lender has outperformed the Nifty loan growth to be loan growth that announced, Bernstein
Monday. lier imported parts due to a 15 15 15 15 Bank index, which rose about 20% below 15% for FY21.
BLOOMBERG has been 18-20% had warned in a note
depreciating rupee. Now, the in the same period. The bank has dou- every quarter. that HDFC Bank has
bigger blow of the lockdown This may well change in the wake bled its provisions in “idiosyncratic risks”
Analysts now
Money taboo that central has dimmed hopes of even a Q1 CY Q2 CY Q3 CY Q4 CY of the lockdown getting extended the March quarter, a from its unsecured
sales gain in the June quarter. by 19 days. While analysts have not sign that it expects see it to be below personal loan segment
banks shied away from Typically, the first quarter
Source: Motilal Oswal Financial Services
started putting up sell ratings [San- trouble ahead. Specifi- 15% for FY21 in addition to manage-
The coronavirus-battered economy is shredding is the peak season for the SATISH KUMAR/MINT
ford C Bernstein (India) Pvt. Ltd cally, ₹1,550 crore has ment challenges.
records for government borrowing and for cen- industry and accounts for is uncertainty on when parts with the impact of rupee continues to be an outlier with an been provided for The bank has the
tral bank lending. Soon it may also smash the about half of AC manufactur- supply, transport and retail depreciation on imported underperform tag on the stock], potential impact of covid-19. highest percentage share of unse-
taboo that’s supposed to keep those two things ers’ annual sales. Even if the financing will normalize. parts, will dent FY21 profit they have given enough warnings This makes sense especially cured loans in its retail book (30%)
apart. Governments paying for budget spending lockdown is lifted on 3 May, HDFC Securities Ltd in a margins. Analysts expect FY21 on the bank’s future performance. when the distress among SMEs is and gets nearly a quarter of its profit
with loans from their own central banks is known consumers are likely to take recent report said: “May-June operating margin for the To start with, the pain points palpable amid the lockdown. Bro- from this category. Surely, the
as monetary financing. The risk, repeated time to return to sales outlets. can see healthy demand (if no industry to dip by 100-150 flagged are its unsecured retail ken supply chains, stuck funding impact on asset quality or even lack
throughout history from the Weimar Republic to “Our analysis suggests sec- further extension of lock- basis points from FY20 levels. loans and loans to small and and, most of all, limited mobility of growth is likely to weigh heavily
parts of Latin America, is that it becomes a slip- ondary sales (retail) may be down), still it will not be able to The magnitude of the impact medium enterprises (SMEs). have hit small businessmen hard. on the profitability of the private
pery slope in which politicians ride roughshod down 30% year- cover up the reve- will depend on the time taken sector lender.
over central-bank independence, triggering run- on-year (y-o-y) in Analysts expect nue losses of April. for sales to recover. Whether Bernstein’s warning
away inflation as they splash what feels like free Q1FY21 and Production shut- For now, brokerage firms
Stress around the corner was extreme or not, HDFC Bank has
FY21 operating Despite slower growth in bad loans in the March quarter, HDFC Bank has
cash around the economy. The stricture against another 10% margin for down will also have pencilled in a sharp dou- ramped up provisions anticipating pain from the covid-19 lockdown.
a lot to worry on its unsecured port-
direct financing has held up even through a series y-o-y in the Sep- the industry to impact availability ble-digit drop in Q4 FY20 net Growth (in %)
folio. Investors can take comfort
of crises when central bankers did in fact buy tember quarter of many brands profit of firms such as Blue 120 from the fact that the bank’s man-
dip by 100-150 Net profit Provisions Gross non-perf orming assets
plenty of public debt. They just made sure to do it (Q2FY21),” said a and supply will be Star Ltd and Voltas Ltd. 100 100 agement has sounded confident to
in a roundabout way, snapping up bonds in the report by Motilal basis points from slow in May.” Stocks, too, are down 11-30% handle the headwinds.
secondary market. BLOOMBERG Oswal Financial FY20 levels To be sure, from the January levels, when 80 That said, premium valuations
Services Ltd. It firms with strong the virus outbreak was known. 60
now look hard to justify in light of
would be a brands w i l l In spite of the drop, shares of the tepid growth, or an expected
harder blow for manufactur- recoup faster and are likely to Blue Star and Voltas trade at 40 asset quality hit. Of course, peer
Surging debt ers as dealers reduce offtake to gain market share. That said, about 30 times one-year for-
31.7
comparison may still put HDFC
20 18.17 17.7 12.7
The level of government debt in sub-Saharan trim inventory. the rush to sell stocks before ward price-earnings multi- Bank on a stronger footing. But
Africa has doubled in the past decade. 4.53
Gross government debt as a share of GDP (in %)
Further, the lockdown may the monsoon begins might see ples. This caps upsides given 0 defending the current valuation
Q1 FY19 Q4 FY20
70 not be lifted across the country hefty discounts by manufac- that analysts have forecast an multiple of 3.1 times its FY20 book
Source: Company
at the same time. Hence, there turers and dealers. This, along earnings drop in FY21. value is going to be a challenge.
60 67 SARVESH KUMAR SHARMA/MINT

50
50

40

30

20
31 Dec 2000 31 Dec 2019
Source: Bloomberg
Jefferies consumer survey suggests prolonged pain for retail and travel
Pallavi Pengonda This survey has thrown up six cussion with some representa- Unilever Ltd and Nestlé India
SATISH KUMAR/MINT
Return of retail
pallavi.p@livemint.com key points, says Jefferies: “We Only 1 in 5 people will hit the shops as soon as restrictions end, shows
tives of fashion apparel brands on Ltd, have touched highs in the
Debt relief for poor not an highlight six surprises… 1) most a Jefferies survey. covid-19 and their outlook. Dur- recent past when the broader

I
t’s fairly evident by now that
easy sell to bondholders the covid-19 outbreak will alter
A pause in debt payments for the world’s poorest consumer behaviour dramati-
countries to help them battle the coronavirus will cally. For investors, this will also
be a hard sell for private creditors. The Group of call for a change in the way they
20 leading economies last week heeded calls from look at consumer-related compa-
African finance ministers to grant a debt waiver of nies and their respective stocks.
about $20 billion until the end of the year, and Surveying 5,500 people in 11
asked private creditors to step up. Groups repre- countries, Jefferies Global
senting commercial creditors, who snapped up Research has found some inter-
bonds from low-income countries in recent years esting results of how consumers
amid record-low yields in developed markets, are likely to respond when coun-
said they would be willing to participate. But a tries lift the lockdowns.
deferral of sovereign bond payments will be far The countries surveyed
from easy. Debtor countries would have to con- include the US, China, Japan, the
vince a majority of investors to use collective-ac- UK, France, Italy, Germany,
tion clauses to change the date of payments on Spain, Hong Kong, India and
each bond series. BLOOMBERG Australia.
people think this crisis has the
potential to ‘shake things up’ for
the better, 2) more than 6 in 10
people think companies have
acted responsibly, 3) only 1 in 5
consumers will go shopping as
soon as quarantine restrictions
end, 4) most consumers are not
even planning to book holidays
in 2021, 5) housing intentions are
largely unchanged and 6)
roughly 6 in 10 Americans are
optimistic about the health of
their finances.”
Of course, the extent of the
impact is expected to be different
for each region. Even so, the fact
that consumers will not rush to
ing the discussion, Vineet equity market was in a sombre
40
Respondents (in %)
Gautam, chief executive and mood.
US Europe Asia-Pacific
country head of Bestseller Retail To be sure, the findings of the
30
India Pvt. Ltd that sells brands Jefferies’ survey on travel are dis-
20 such as Jack & Jones and Vero couraging, too. If consumers
Moda, said: “It would take 9-12 don’t book holidays up to 2021,
10 months for a semblance of nor- then recovery in sectors such as
malcy to return, during which hotels and airlines will be
0 time businesses would do well to delayed. This could lead to trim-
Immediately 1-2 weeks 1 month + 3 months + Plan to shift most
purchases online look at a broader supply chain ming of incomes of employees
backbone.” engaged in these sectors, further
Source: Jefferies Proprietary Survey
In general, sale of essential weighing on consumer spends in
SARVESH KUMAR SHARMA/MINT
items is expected to be relatively future.
shops as soon as the lockdown is lockdown is lifted. Consumer cushioned compared to the sale Shares of Indian aviation com-
over is bad news for retailers, sentiment is expected to pick up of consumer discretionary items. panies, InterGlobe Aviation Ltd
including those in India. gradually here. Unsurprisingly, shares of some and SpiceJet Ltd, though higher
Indian retailers are not expect- Last week, the Retailers Asso- fast-moving consumer goods than their 52-week trading lows,
TELEGRAM t.me/indiaepapers
ing demand to surge once the

Mark to Market writers do not have positions in the companies they have discussed here
ciation of India held a virtual dis- companies, such as Hindustan are far away from their highs.
 Get Stock Market Updates from Telegram app: https://t.me/KittusWealthJourney

CORPORATE TUESDAY, 21 APRIL 2020

MUMBAI 05
VIRUS EFFECT
Maldives
Lenders pin hopes on govt RBI raises short-term
can count borrowing cap for the
on India in
virus fight,
guarantee for MSME loans Centre to ₹2 trillion
ANIRUDDHA CHOWDHURY/MINT

says Modi Gopika Gopakumar

gopika.g@livemint.com

Elizabeth Roche
With limited cash flows, smaller firms are unable to manage the disruption, unlike bigger peers MUMBAI

T
elizabeth.r@livemint.com he Reserve Bank of India
NEW DELHI Shayan Ghosh (RBI) on Monday raised
shayan.g@livemint.com the amount that the

I
ndia on Monday assured the MUMBAI Union government can bor-
Maldives of continued sup- row from it for the short term

port to the Indian Ocean
atoll nation trying to cope with
the challenges posed by the
coronavirus pandemic.
In a telephone conversation
with Maldivian president Ibra-
him Mohamed Solih, Prime
Minister Narendra Modi
appreciated the “special chal-
lenges” that the pandemic
poses for a tourism-dependent
economy such as the Maldives,
a statement from India’s for-
eign ministry said.
Modi “assured Solih of con-
tinued Indian support for min-
imizing the health and eco-
nomic impact of covid-19”, it
said, adding that both leaders
“agreed their officials would
remain in touch on issues aris-
ing out of the present health
crisis, as well as other aspects
of bilateral cooperation”.
Modi was “happy to hear
that the Indian medical team
deployed earlier to Maldives,
and the essential medicines
gifted by India, had contrib-
uted towards controlling the
spread of the infection in the
islands”, it added.
The reference was to India’s
dispatch of an army medical
team last month after the atoll
nation reported its first case at
the beginning of March when
two employees of a resort
tested positive. On Friday, the
Maldivian Health Protection
Agency issued strict stay-at-
home orders for Male, home to
40% of the country’s popula-
tion of 450,000, fearing an
outbreak in the congested city.
A
s businesses come to a halt to ₹2 trillion for the first half of
due to the nationwide 2020-21. The so-called Ways
lockdown, banks and and Means Advances (WMA) RBI earlier raised the WMA
industries have sought was fixed at ₹1.2 trillion on 31 limit for states by 60%.
government guarantees March, against ₹75,000 crore
on loans. Smaller businesses, with lim- in the April-September period crore saw a surge in bidding
ited cash-flow, have been the worst hit of the previous fiscal. interest, an indication that RBI
and, unlike their bigger peers, are una- The limit was raised to tide may have intervened by plac-
ble to manage the disruption. over the situation following ing bids via primary dealers.
Lenders, through their lobby body the covid-19 pandemic, RBI The weekly statistical supple-
Indian Banks’ Association (IBA), have said in a statement. ment data released by RBI
suggested that the government guar- The move comes after it showed that it bought bonds
antee all incremental loans to small raised the WMA limit for states and treasury bills of ₹14,660
businesses. According to estimates by by 60% over and above the crore in the second week of
bankers, the sector needs incremental level as on 31 March 2020 to April. Although RBI’s indirect
loans of at least ₹50,000 crore, and a help them plan their market intervention is seen more as a
guarantee by the government will borrowing programmes bet- bid to recalibrate the yield
allow risk-averse banks to start lending. ter. The limit will apply till 30 curve, it does take the central
The Reserve Bank of India’s data September. bank a step closer to direct
shows total bank loans to small busi- WMA is a tem- monetization of
nesses stood at ₹4.78 trillion for the porary liquidity The Ways and government defi-
fortnight ended 28 February. a r r a n g e m e n t Means Advances c i t , which
Despite the MSME sector contribut- with RBI that for H1 FY21 was includes sub-
ing 30.3% to India’s gross domestic Loans to micro and small industries had already declined 1.1% between March 2019 and February. SAI SEN/MINT enables the Cen- raised to tide over scribing to gov-
product (GDP) in FY19, flow of credit to tre and states to ernment bonds
the situation due directly by print-
small businesses has been sluggish for Guarantee Fund Trust for Micro and 60 million small businesses in India, of ing in the informal sector. borrow up to 90
a while now. Loans to micro and small Small Enterprises (CGTMSE) scheme which only 910,000 are registered on “Loans through the online portal will days from the to the covid-19 ing money to help
industries declined 1.1% between guarantees 50-85% of loans up to ₹2 Udyog Aadhaar, a government portal only help the registered MSME with central bank to pandemic the government
March 2019 and February. crore. allowing Aadhaar-based registration of GST records,” he said. tide over mis- as it contends
Banks have suggested that these However, since banks are in favour MSMEs. While lenders in India seek govern- matches between with falling reve-
loans could be disbursed through a ment backing for loans to small revenues and expenditure. nues.
portal like the psbloansin59min- HOW THE WEST DID IT businesses, countries, such as the Separately, the Centre has “Fiscal expansion is impera-
utes.com, which generates imme- US, have already implemented a allowed states to borrow up to tive. Given the fiscal situation
diate in-principle approval for bor- THE US has already IT announced THE loan guarantee IN the UK, there are similar scheme. ₹3.2 trillion in the first nine we have inherited, it is a diffi-
rowers. implemented a loan $359 bn in forgivable scheme is part of talks of offering The US has announced $359 bil- months of FY21. States will be cult path to navigate. Open
guarantee scheme small business the historic $2 tn 100% government
The portal uses algorithms to for small businesses administration loans package to rescue the guaranteed loans to lion in forgivable small business able to raise 50% of the market operations enable gov-
analyse data from the goods and affected by covid-19 and guarantees American economy small businesses administration loans and guaran- increased net borrowing limit ernment to borrow at as low
services tax (GST) database, tees to help small businesses that in April-December. State gov- cost as possible. RBI will have
income tax (IT) returns and bank retain workers as part of its $2 tril- ernments have already bor- to try everything possible to
statements to decide on eligibility. of an online portal that uses GST data to Salunkhe said more than 70% of lion covid-19 package. rowed as much as ₹44,778 enable the government to do
Once the proposal to backstop loans is process loan requests, a chunk of India’s small businesses do not have In the UK, there is talk of offering crore so far this fiscal against more short-term borrowing
accepted by the government, banks India’s small businesses will be left out. access to bank credit at the moment 100% government-guaranteed loans to ₹29,572 crore worth of state and roll it over so that the bor-
will open their purse strings to lend to According to Chandrakant Sal- and, even if the government guaran- small businesses to ensure these com- development loans last April. rowing cost is kept low,” said
the sector and then apply for the guar- unkhe, founder and president, SME tees incremental loans, these entities panies do not go into bankruptcy, The On Friday, the government Abheek Barua, chief econo-
antee cover. At present, the Credit Chamber of India, there are more than will be left out by the virtue of operat- Guardian reported on 19 April. bond auction of ₹20,000 mist at HDFC Bank.

CORPORATE BUZZ Mint Media Marketing Initiative

Tata Motors global wholesales HLL SETS UP EMERGENCY PROCUREMENT AND UCO BANK REDUCES ITS
decline 35% y-o-y in Q4 FY20 RESPONSE TEAM FOR COVID-19 MCLR RATES AND FIXED Business
In view of the rapid spread of across all states in India. In this re- DEPOSIT RATES
Amit Panday reported a 31% y-o-y drop in
Covid- 19 and the rising demand gard HLL has also floated an open UCO Bank has reduced its Mar- of Life
amit.p@livemint.com retail sales in the March quarter for Personal Protection kits form tender inviting manufacturers of the ginal Cost of Funds Based Lending
MUMBAI at 109,869 units. Retail sales in the various institutions, the Union above products to submit their of- Rates (MCLR) by 25 basis points
Health Ministry has authorised HLL fers. across various tenors, with effect Daily articles on the
FY20, however, fell at a com-
workplace, and how

T
ata Motors Ltd on Mon-
day reported a 35%
decline in global whole-
sales, including those of Jaguar
Land Rover (JLR) vehicles, in
the March quarter as it shut-
tered factories worldwide
because of the pandemic.
The company’s global
wholesales, or factory dis-
patches, stood at 231,929 units
during the three months ended
31 March, the Mumbai-based
automaker said. Global whole-
sales of Tata Motors’ namesake
brand of commercial vehicles,
as well as those of the Tata Dae-
woo range, plunged 49% from
the year earlier to 72,608 units.
In the passenger vehicle seg-
ment, global wholesales
dropped 26% year-on-year
(y-o-y) to 159,321 vehicles.
Global wholesales for British
Firms want mosquito repellents
included in list of essential goods
Anirudh Laskar
anirudh.l@livemint.com
MUMBAI
JLR had on Saturday reported
a 31% y-o-y drop in retail sales
in the March quarter. REUTERS
luxury carmaker JLR stood at
126,979 units in the quarter,
which included 6,288 vehicles
sold by the Chery Jaguar Land
Rover joint venture in China.
The figure comprised
32,940 units of Jaguar brand of
vehicles and 94,039 Land
Rover wholesales.
JLR had on Saturday
diagnostic and treatment
activities,” Pedro Alonso, ers of household insecticides
director, WHO Global Malaria are staring at revenue losses.
Programme, said on 25 March. Sunil Kataria, CEO, Godrej
paratively modest pace of 12%
to 508,659 units as the Tata
Motors unit saw double-digit
growth in China during Q2 and
Q3 of the last fiscal.
Nearly all retailers have
reopened and sales are recov-
ering, with lockdown measures
easing in China, JLR said.
Tata Motors’ domestic
wholesales for FY20 stood at
442,052 units, down 35% y-o-y.
This included a 34% y-o-y drop
in commercial vehicle sales at
310,855 units and 38% y-o-y
decline in passenger vehicle
sales at 131,197 units.
Earlier this month, S&P
Global Ratings had down-
graded Tata Motors’ senior
unsecured notes from B+ to B
on weakening credit metrics
because of the economic
impact of the coronavirus.
Consequently, manufactur-
Life care Ltd as the nodal procure-
ment agency for all such require-
ments. HLL has been entrusted
with procurement of N95 mask,
2ply and 3ply surgical mask, per-
sonal protective garments, nitrile
gloves, goggles, handheld infrared
thermometer, and sanitizers etc.
on an emergency basis. There is
a huge demand for these products
CYCLE PURE AGARBATHIES MAKES A DONATION OF
RS 1.08 CRORE TOWARDS PM CARES FUND
Cycle Pure Agarbathies, from agar-
bathi to aerospace conglomerate
NR Group, extends support to the
country and government in com-
bating Covid-19 with a donation of
Rs1,08,00,000 to PM’s Citizen As-
sistance and Relief in Emergency
Situation (PM CARES) Fund. The
brand which has been in the prayer
and worship space from the last 70
years, has initiated a series of fund-
ing and donation activities along
with an in-depth business continuity
plan for its employees to overcome
novel Coronavirus.
The Mysuru-based company,
who has been actively supporting
their employees amidst this nation-
wide lockdown, also donated Rs 1
lakh to the volunteer groups in their
hometown to provide meals to the
migrant labours, police on duty and
The details of the bid are avail-
able at www.lifecarehll.com. The
above link covers entire details of
the product required including the
product specifications as finalised
and approved by the Ministry of
Health and Welfare. In view of the
pandemic, HLL solicits all manufac-
tures/suppliers to participate in this
emergency procurement tender.
“It is a challenging time for all of us
across the country, hence it is very
important for us to join our hands
and support our government in this
battle. As an organisation and indi-
viduals, we are doing every possi-
ble thing from our end to overcome
this pandemic. Our employees
across the country are also donat-
ing to respective Covid-19 state
relief funds. We would also like to
request citizens across the country
to do their bit and follow the govern-
ment’s directive very seriously.
A simple task like washing your
hands, staying hygienic, ensuring
social distancing is quintessential
at this time.”
He adds, “This is the time where
we all need to think inwards and
improve ourselves, hence we urge
you all to cultivate a hobby to make
from April 10.
Now the revised one year MCLR it is evolving.
stands at 7.95 per cent, reduced
from 8.20 per cent. The revised
overnight, one-month, three-
months and six-months tenor
MCLR now stands at 7.35 per cent,
7.50 per cent, 7.60 per cent and
7.85 per cent respectively i.e. 25
basis points lower than their exist-
ing levels. As a result, all MCLR
linked loans will become cheaper
now. The bank has also reduced
the fixed deposit rates across all
the tenors between 0.25 per cent to
0.50 per cent.
FCI SCALES UP
DISTRIBUTION OF FOOD
GRAIN IN NORTH-EAST
Food Corporation of India (FCI)
has achieved all time record in
transporting more than 1,300 train
loads (rakes) carrying about 36
LMT of food grains during the lock-
down period across the country,
which is double of its normal op-
eration.
In Northeast part of India, FCI
is catering the food grain require-
ments of seven States of North-
East viz. Assam, Arunachal
Pradesh, Meghalaya, Nagaland,
Manipur, Mizoram and Tripura and
maintaining the adequate supply

T
he consumer goods
industry and health
organizations have
urged the government to
include mosquito repellents,
pesticide sprays, liquid vapor-
izers and other household
Dengue and malaria are Consumer Products Ltd, chain in this part of the country
homeless people. The brand has this lockdown productive. We also
spread by mos- which derives
also taken initiative to donate over request everyone to pray for our during this emergent situation.
quitoes and to To prevent 38-40% revenues
prevent these ail- from home insec- 400 face shields to the District in- health staff and police force who Food warriors are committed to-
ailments such
ments, repellents ticide items, said: charge Minister V Somanna ensur- are on the frontline of this battle. wards smooth and uninterrupted
as dengue and
have become “We have been ing the safety of the health staffs, We are all in this together and with supply of food grains in North-East
malaria,
common house- holding regular police and citizens. In this global people’s support and prayers we under Public Distribution System,
repellents have THE MOST AWESOME BUSINESS DAILY THERE IS.

insecticides in the list of essen-
tial goods to prevent an out-
break of vector-borne diseases
such as dengue and malaria
amid the covid-19 crisis.
The World Health Organi-
zation (WHO) had warned in
March that risks of dengue and
malaria also loom large over
India. “Do not scale back your
planned malaria prevention,
hold items in conversations crisis, the organisation has also will come out of it stronger.” other welfare schemes of Gov-
India. However, become common with the ministry been able to source and secure five In the current situation, organi- ernment of India and recently im-
due to the coun- household items of health and fam- ventilators for Mysuru government sations across the world are strug- plemented Government of India
try’s focus on ily welfare. The To get your MINT copy,
through international relations es- gling to keep up with economic scheme i.e. Prime Minister Garib give a missed call on
controlling the government
tablished by Rangsons Technolo- slowdown and the novel corona- Kalyan Anna Yojana (PMGKAY). 7039035039
covid-19 pandemic, not only should mention household
have repellents been excluded insecticide items explicitly in gies. virus pandemic, amidst the chaos FCI is also supplying wheat and or visit
rice in Open Market to control the
from the essential items list, the list of essential goods; oth-
but even local health authori- erwise we are not able to man-
ties have stopped routine out- ufacture these products meant
door spraying of pesticides. to fight dengue and malaria.”
TELEGRAM t.me/indiaepapers
Speaking about the current situa-
tion, Arjun Ranga, Managing Direc-
tor, Cycle Pure Agarbathies said,
NR Group, also announced its busi-
ness continuity plan for its employ-
ees and vendors across India.
market price as a part of market in-
tervention scheme”.
www.mintreaders.com
or write to us at
subscription@livemint.com
 Get Stock Market Updates from Telegram app: https://t.me/KittusWealthJourney

06 TUESDAY, 21 APRIL 2020

MUMBAI CORPORATE
VIRUS EFFECT
Cricketers Logistics pain stands in the way
team up to of plan to restart India’s factories
promote Team Mint

DIY masks feedback@livemint.com

NEW DELHI/MUMBAI

Saumya Tewari

H
opes of a controlled
saumya.t@livemint.com restart to industrial
NEW DELHI production are bedev-
illed by uncertainty over logis-

I
ndian cricketers are putting
their best foot forward in the
fight against covid-19.
Captain Virat Kohli, legend
Sachin Tendulkar and women
cricketing stars such as Har-
manpreet Kaur, Smriti Man-
dhana and Mithali Raj are all
part of a drive to get people to
make their own masks and
download the Aarogya Setu
app.
It only makes sense in a
cricket-crazy nation that a
message gets delivered best
when it comes through its
most-loved cricketers.
The government has
brought together cricketers
across ages and gender in an
tics, even as India heads for a
phased exit from the lockdown
that began on 25 March.
Given the crippling short-
age of workers and trucks, and
skeletal air cargo operations,
the industry is staring at an
uphill task, even as curbs begin
to ease from Monday depend-
ing on the infections in a
region. Besides, the Centre’s
orders allowing goods move- Port operators have also not heeded government guidance on
ment are yet to reach local waiving demurrage charges during the lockdown. BLOOMBERG
authorities in many districts.
“The whole supply chain is suppliers have started after a ates in tyres, cement, agri busi-
picking up very, very slowly,” long gap, domestic manufac- ness and paper, besides others.
said Vineet Agarwal, manag- turers are unable to move “Really, the challenge is not
Flipkart CEO Kalyan Krishnamurthy in an internal communication said the company must focus on promoting social distancing and ing director, TCI, one of them from ports to their facto- the start of factories, but how
ensure a safe supply chain for goods, after the government said e-tailers will not be allowed to deliver non-essential items. BLOOMBERG India’s largest logistics compa- ries. do we get demand moving.
nies. “Things have improved a “A lot of our material is stuck There has to be money in the

Flipkart CEO asks staff

engaging anti-coronavirus
campaign titled Mask Force to
create awareness and get Indi-
ans to make their own masks,
practise handwashing and
social distancing.
The minute-and-a-half-
long film made by ad agency
Ogilvy India features the coun-
try’s most celebrated cricket-
ers. Each of them leads by pull-
ing up their unique mask.
The digital campaign was
first shared by the Board of
little bit in the past few days
and some movement of trucks
has started, but we have to wait
to see how things shape up
from Monday. There could be
to focus on customers local governments that may
not open up.”
The movement of essential
goods, such as pharmaceuti-
cals and fast-moving con-
Madhurima Nandy distancing and providing the products “We will do this while following our sumer goods (FMCG), has
madhurima.n@livemint.com that consumers need at their doorsteps robust SOPs (standard operating proce- improved, but “there is still
BENGALURU through a safe supply chain,” Krishna- dures) with the highest standards of huge congestion at ports,” he
murthy added. hygiene across our supply chain and last- said.
at ports as freight forwarding hands of consumers to spend.
was not allowed during the Then only you will have the
lockdown,” said Arpit Chha- pull (that is needed for produc-
bra, co-founder and CEO of tion),” Singhania said, urging
IoTfy, an Indian electronics the government to come out
company, adding he was hop- with an economic relief pack-
ing to move some of the goods age.
from this week to warehouses. Automobile companies are
Rahul Agarwal, managing trying to gauge demand before
director and CEO at computer deciding on the import of
maker Lenovo components, an
India, said the Orders issued by industry execu-
company’s facto- the Centre tive said on con-
ries in China that allowing goods dition of ano-

Control for Cricket in India on
18 April and got more than
5,000 retweets and over
20,000 likes. The campaign
gained further momentum
after Prime Minister Narendra
Modi retweeted it. It will be
promoted across social media
T
here should not be any distinc- E-commerce majors such as Walmart- mile delivery to promote social distanc- Apart from the shortage of supply compo- movement are yet nymity.
tion between online and off- owned Flipkart and Amazon India were ing, thereby helping in the fight against truck drivers and workers to nents and prod- Logistics com-
to reach local
line in these challenging times in for a rude shock on Sunday when the the spread of this disease,” Krishnamur- load and unload goods, there ucts to India are panies are also
and the objective government said that sale thy said. are issues with private ports now running at authorities in planning to ramp
should be to pro- m CEO SPEAK and delivery of non-essen- Flipkart did not comment on the defying government orders to 100% capacity, many districts up operations
vide customers what they tial products online won’t revised directive of the government. waive demurrage, or the but goods that slowly because of
need at their doorsteps, Kalyan Krishna- be allowed, just a few days after it issued However, an Amazon India spokesper- charge payable to discharge have landed here uncertain
murthy, chief executive officer, Flipkart permission for this. son said on Sunday: “The new guide- goods within a time. can’t be moved from domestic demand. Leading logistics

and digital platforms, includ-
ing influencer promotions and
also by using the hashtag
#TeamMaskForce.
“I believe that ‘Mask Force’
would be a likeable term that
could be used to galvanize the
entire country,” said Ogilvy’s
chief creative officer world-
wide and executive chairman
for India, Piyush Pandey.
Ogilvy has also said this is
the first in a Mask Force series
in which it is partnering the
government. The agency is
working on a series of films
that will highlight the dos and
don’ts of the fight against the
pandemic.
‘
Group, said a day after the Centre Online firms, for lines will disappoint not The port congestion has ports. Lenovo has a factory in company Spoton said it will
revoked the permission for sale of non- which non-essential only the consumers also hurt exports and imports. Puducherry, which it expects resume services initially to a
essential goods by e-commerce firms goods comprise a far While facing today’s whose list of essentials “We have about ₹1,000 to restart gradually. few pin codes, but its air servi-
during the lockdown. larger chunk of sales, unprecedented chal- had expanded to work- crore worth of export orders While goods movement has ces will remain suspended for
Flipkart will continue to deliver gro- were compelled to sell from-home and study- for the month of April from perked up a bit, it will still take the time being.
ceries and essentials to customers, in only essentials such as lenge, there is nothing from-home products, our distributors and retailers weeks to improve signifi- In a letter to its customers,
partnership with sellers, kirana stores, groceries, which is online or offline, there but also the thousands of overseas. Due to the lock- cantly, said Harsh Pati Singha- Uday R. Sharma, director-
and other stakeholders, Krishnamurthy essentially a low-value is just one line, that is, small businesses, sellers down, these orders are now nia, vice-chairman and sales, Spoton Logistics Pvt. Ltd
said in an internal mail to employees on and low-margin busi- and manufacturers held up,” said Rakesh Sharma, director, JK Organisation. said, “The operating costs for
Monday. ness. the customer across the country, who executive director, Bajaj Auto “The material that was stuck us during this phase will be
“Over the next few days, please con- In his email, Krishna- Kalyan Krishnamurthy had geared up in the last Ltd. on roads has all been cleared. higher due to labour and
tinue to focus on exploring new, innova- murthy indicated that CEO, Flipkart Group 48 hours to provide mil- Bajaj, India’s largest But now, the issue is moving driver shortages, lower
tive ways to drive value for our ecosystem Flipkart will be prepared lions of people with safe exporter of two- and three- goods from your warehouses throughput led by falling
of sellers, brands, partners, kiranas and to meet customer needs access to products.” wheelers, is exploring options and godowns to points of con- demand in many sectors of the
customers,” he said. as soon as the government decides to “On behalf of consumers and sellers, to meet its export orders. sumption,” he said. economy.”
“While facing today’s unprecedented resume full operations and economic we hope that this situation is rectified Imports are also proving to The lockdown had resulted Biman Mukherji, Abhijit
challenge, there is nothing online or off- activities. However, till then, it will con- soon, so that the urgent need of consum- be as much of a challenge. in a virtual shutdown of most Ahaskar, Amit Panday and
line, there is just one line, that is the cus- tinue to deliver groceries and essentials ers is met and that there is revival of eco- Though component ship- operations of the diversified Malyaban Ghosh contributed to
tomer, which means solving for social to customers across India. nomic activity,” the spokesperson added. ments from major Chinese business group, which oper- this story.

80% of cases could be asymptomatic: ICMR Lockdown has curbed doubling rate: Govt
PRADEEP GAUR/MINT
Srishti Choudhary not planning to change the tested using RT-PCR for final Neetu Chandra Sharma reported from Maharashtra, ery rate of covid-19 patients News Delhi-based Rajiv Gan-
srishti.c@livemint.com testing criteria,” he said, when confirmation. Pool sampling is neetu.sharma@livemint.com New Delhi and Tamil Nadu. has also been steadily increas- dhi Institute for Contempo-
NEW DELHI asked if this needed a change being done for better surveil- NEW DELHI Eighteen states and Union ing. “It has increased from 8% rary Studies, said, “The alarm-
in testing strategy to include lance in areas with low preva- territories, including Odisha at in the week ending 29 March ing growth in numbers in Guj-

E T
ven as infections contin-
ued to double every
seven and a half days, the
Indian Council of Medical
Research (ICMR) said on Mon-
day that the majority of cov-
id-19 cases in the country
could be without any symp-
toms.
“At least 80 out of every 100
Covid-19 patients may be
asymptomatic or could be
showing mild symptoms. It
takes a few days before an
infected person begins to
show symptoms and the prob-
ability of being detected posi-
tive is highest when symptoms
Dr R. Gangakhedkar, senior
scientist at ICMR, New Delhi.
begin to show,” said Dr R.
Gangakhedkar, senior scien-
tist at ICMR, New Delhi.
“It is a new disease but we
are doing everything we can to
combat it. As of now, we are
those without symptoms. Con-
tact tracing remains crucial.
As per ICMR’s testing proto-
cols, only those people who
show symptoms or are con-
tacts of previously confirmed
patients are being tested. They
also include those suffering
from Severe Acute Respiratory
Infections.
The criteria was, however,
revised for hotspots and con-
tainment zones, where all peo-
ple showing influenza-like ill-
ness are being tested, but pri-
marily screened through
antibody tests. If the result is
positive, the samples are again
lence of infections.
According to a recent study
published in peer-reviewed
journal Nature Medicine by
Chinese scientists, covid-19
infected persons may begin
shedding (transmitting) virus
two-three days before the
symptoms begin to appear.
Maharashtra and Delhi,
which have the highest num-
ber of cases, have been
expressing concerns over a
large number of asymptomatic
cases. Maharashtra even said
that at least 70% of patients in
the state are without any
symptoms.
he government on Mon-
day said the time for
doubling the rate of cov-
id-19 cases in the country
stretched to 7.5 days during
the nationwide lockdown
from 3.4 prior to the curbs.
The doubling rate was cal-
culated using growth over the
previous seven days, said the
Union ministry of health and
family welfare, even as the
total number of cases reached
18,282 on Monday with the
addition of 1,248 cases. The
toll touched 572 with 32 fresh
deaths. The maximum num-
ber of cases continue to be
39.8 days and Kerala at 72.2 to 14% in this week,” he said. arat and Madhya Pradesh
days, have a better doubling “Learnings doesn’t sound
rate than the national average, from the small The time for good and, there-
said Lav Agarwal, joint secre- pox eradication doubling rate of fore, makes any
tary, Union health ministry. and polio eradica- cases stretched to celebration pre-
Agarwal said that all cov- tion programmes, 7.5 days during mature. We can
id-19 patients in Goa were dis- as well as block- only relax once
the lockdown
charged from hospital after ing the entry of the numbers start
recovery and now it has no Ebola into our from 3.4 prior to receding for at
active case. “Three districts country in 2014 the curbs least 15 days. This
across the country, Mahe and handling the hasn’t happened
(Puducherry), Kodagu (Karna- plague in 1994 in except in Kerala.”
taka) and Pauri Garhwal Delhi and Surat, and tackling Meanwhile, the central gov-
(Uttarakhand), have also not the Nipah virus recently, has ernment has identified 755
reported any fresh case in the paid rich dividends in han- dedicated covid-19 hospitals
last 28 days,” he said. dling covid-19,” he said. and 1,389 dedicated covid-19
Union health minister However, Amir Ullah Khan, health centres at the central
Harsh Vardhan said the recov- senior research fellow at the and state levels.

mint at the core of the current economic crisis, S&P said that as house-
Iran opens up as economic woes IMF chief says worried about virus
hold incomes fall, consumer spending and tax revenues suffer.
SHORT TAKES Borrowers are less likely to repay their debts. Job seekers lose skills
and become discouraged. “Policymakers know this. Hence, the
remarkable efforts to encourage firms to keep workers on the pay-
trump coronavirus outbreak
AFP
impact on developing countries
Sofia: Developing countries
may be the hardest hit economi-
AFP

Airtel to pay April salaries of nearly
25,000 staff at distribution partners
PRADEEP GAUR/MINT New Delhi: Airtel has decided
to pay the basic income for April
to nearly 25,000 staff of its dis-
tribution partners and retail
franchisee network. “In order to
help you tide over this tough
time, we plan to extend a one-
time support for the month of
April,” the firm said in a letter to
distribution partners. PTI
Unemployment rate in Asia-Pacific
may rise over 3 percentage points
New Delhi: Unemployment rates across Asia-Pacific could rise by
well over 3 percentage points as social distancing measures imple-
mented to contain rapid spread of coronavirus hit the engine of job
creation, S&P Global Ratings said on Monday. Stating that jobs are
roll,” it said. The service sector has become the most important
employer across the Asia-Pacific region. “The unfortunate truth
about jobs in almost every economy in the world is that they are
easily lost but hard to win back. The more jobs that are lost today,
the slower will be the recovery,” S&P said. PTI
Govt launches dashboard with list
of eateries and truck repair shops
New Delhi: To help drivers engaged in supplies of essential com-
modities and other cargo, the road transport ministry on Monday
launched a dashboard containing a list of dhabas and truck repair
REUTERS shops. In addition, the National
Highways Authority of India’s
(NHAI’s) centralised call number
1033 has also been enabled to
answer calls and help drivers and
cleaners to find information
about the dhabas and repair
shops along National Highways.
PTI
TELEGRAM t.me/indiaepapers
cally by the fallout from the
spread of the new coronavirus,
International Monetary Fund
(IMF) managing director Krista-
lina Georgieva said on Monday.
“The countries that are now
worst hit by the pandemic are
not necessarily the ones that will
be worst hit economically. I am most worried about the developing
and emerging countries,” she told a videoconference press briefing
for the Bulgarian media. REUTERS
Tehran: Iran’s Hassan Rouhani-led administration on Mon-
day began opening intercity highways and major shopping ‘WHO-recommended disinfectants
centers to stimulate its sanctions-choked economy, gam-
bling that it has brought under control its coronavirus out-
effective against coronavirus’
break—one of the worst in the world—even as some fear it Berlin: Alcohol-based hand disinfectants recommended by the
could lead to a second wave of infections. Stores from high- World Health Organization (WHO) are effective against the novel
end malls to the meandering alleyways of Tehran’s historic
Grand Bazaar opened their doors, though the government
limited their working hours until 6pm. AP
coronavirus which causes covid-19, according to a study. The for-
mulations can be prepared quickly and easily by pharmacies and
help alleviate the current shortage of disinfectants, said research-
ers from Ruhr-Universitat Bochum (RUB) in Germany. PTI
 Get Stock Market Updates from Telegram app: https://t.me/KittusWealthJourney

CORPORATE TUESDAY, 21 APRIL 2020

MUMBAI 07
VIRUS EFFECT
m QUARANTINE CHRONICLES

FMCG firms ride on delivery

apps to break the lockdown
The move is reshaping the old model of depending solely on wholesalers and retail stores
Suneera Tandon
suneera.t@livemint.com
NEW DELHI

C
onsumer goods companies
facing broken supply-
JAYACHANDRAN/MINT
chain networks are forging
new linkages with food
aggregators, hyperlocal
apps and courier firms, reshaping the
old model of depending solely on
wholesalers, distributors and retail
stores to reach customers. Tele-servi-
ces and apps to help retailers place
Startup couples reinvent biz to
orders are also being rolled out, as India
nears a month of lockdown to limit the
spread of the novel coronavirus.
stay relevant during lockdown
The lockdown has disrupted tradi-
tional supply chains as distributors, Sohini Sen They are also working on tially,” said Gupta. “Putting all
wholesalers and direct sales staff were sohini.s@livemint.com improving processes such as your eggs in the same basket
hamstrung by severe traffic curbs and NEW DELHI finance and operations. can be risky.” If one had a sala-
shortage of staff and vehicles. Mansi Gupta, 36, and her ried job it would have helped in

Adani Wilmar, which sells edible oil
and other staples under the Fortune
brand, has tied up with Justmyroots,
which delivers fruits and vegetables in
Ahmedabad, Kolkata, Gurugram and
Mumbai. The move comes days after it
partnered online food aggregator
Swiggy to deliver its products.
Marico Ltd, the maker of Saffola
cooking oil, said it reached out to
Swiggy and Zomato in the early days of
S
pouses who have founded husband Ankit Wadhwa, who these times, she said.
startups together are feel- co-founded lifestyle e-com- For the co-founders of travel
Adani Wilmar, which sells staples under the Fortune brand, has already partnered with Swiggy to deliver its products. AP ing the pinch, as the lock- merce startup Tjori in 2013, are startup Thrillophilia, Abhishek
down has dried up the source of also trying to stay relevant. Daga and Chitra Gurnani, their
ing app. “These call centres now have ITC has also forged associations with tied up with e-commerce platform money coming into the busi- Tjori, which earlier only sold relationship of over 20 years is
the capability to capture orders from delivery apps of pizza chain Domino’s, Flipkart to use the latter’s fleet to ness or the household. The apparel, footwear and jewel- helping them weather the
retailers and pass them back to the Swiggy and Zomato, apart from com- deliver goods. “The key challenge was couples are thus having to lery, has started manufacturing storm. “We have been friends
company,” said Mishra, adding the munity-centric apps. It has also part- availability of manpower, and since rethink their strategy to pre- hand sanitizers, handwashes, and partners for 20 years and
model is still a work-in-progress. nered with delivery service provider public transport was not functioning, pare for times after lockdown. and face masks to trigger sales. we have seen some hard times,”
MyGate, an app that services 7,000 Dunzo and is also allowing consumers we tied up with third-party players Rohan and Swati Bhar- INESS O
“There were challen- said Daga, 36. Thrillophilia had
housing societies started talks with to shop online though ITCstore.in. Shadowfax, Uber, Delhivery and Flip- gava, who founded US ges—procuring raw gone bankrupt within 10

the lockdown itself, sensing the
demand for its brands. Later, it tied up
with courier firm Lalamove, logistics
firm Delhivery and business-to-busi-
ness delivery firm Shadowfax, even as
its traditional supply chain struggled.
“These logistics firms are using their
own vehicle network to deliver goods
to retailers,” said Sanjay Mishra, chief
operating officer, India sales and Bang-
ladesh business, Marico Ltd. Marico
also moved to enable its call centres—
previously used to resolve customer
queries—to address supply issues faced
by retailers and rolled out a retailer-fac-
F
online grocery firm Gro- kart,” said Shashwat Cashkaro, a cashback material, permission to months of starting in 2011 and,
fers, and packaged goods
firm ITC a few weeks ago.
So far, the app has ena- MARICO has tied
NEW ROUTES
ITC has also forged SPENCER’S RETAIL
Goenka, sector head,
Spencer’s Retail.
Even as retailers rush
and coupon site, are
reviewing the focus
areas with digital maga-
Life start manufacturing,
arranging passes for the
delivery staff. We had to
again in 2015, and they rebuilt it
from scratch twice. “At no time
did we panic. We thought
bled grocery ordering in up with Lalamove,
Delhivery and
associations with
delivery apps of
tied up with Flipkart
to use the latter’s
to plug supply gaps, it zine subscriptions, online introduce products we had about how we could turn this
over 1,100 societies in Shadowfax to pizza chain Domino’s, fleet to deliver goods remains to be seen education and gaming looking never considered,” Gupta said. into an opportunity,” he said.
metros. MyGate allows deliver its products Swiggy and Zomato to its customers whether these tie-ups up, and eating out and shop- They quickly pivoted from However, there’s always a sil-
Residents’ Welfare Asso- will stick once the lock- ping crashing. “Those were being a retail outlet to catering ver lining. Rohan said having a
ciations (RWAs) to take down curbs are lifted. segments we never paid atten- to B2B clients as well. spouse in the same business
orders and pass it on to say, ITC Ltd, “Many of these emerging channels E-commerce expert Sreedhar Prasad tion to in a non-covid world. “Cash-flow is extremely helps as both understand the
helping fulfil orders for its Aashirvaad- are likely to become mainstream in the said FMCG firms may not continue Now, they are some of our big- important for any startup. We pain points and rise to the occa-
branded atta, ghee, spices, Yippee noo- new normal even after the pandemic is with this model as consumers do not gest grossers. So, we are focus- put everything we earn back sion. Had it been otherwise, he
dles, Sunfeast biscuits, Fiama and Vivel behind us,” a spokesperson said. stock everything from the same firm. ing on them and will continue into the business and right would perhaps have not been
soaps, among others. MyGate is now in Earlier this month, in a pilot, grocer- Kalpana Pathak contributed to this to do so after the situation now, for most startups, earn- able to explain what he was
talks with several other companies. ies and food retailer Spencer’s Retail story. improves,” said Rohan, 39. ings have decreased substan- going through, he said.

IBF says broadcast sector facing Bollywood preps for social distancing, hygiene on sets
existential crisis due to covid-19 Lata Jha
lata.j@livemint.com
priority segment, theatres and work from home, especially if
film sets will be the last in line their jobs do not require them
NEW DELHI to resume operations, Sarkar to be on set. A typical film set
Lata Jha broadcaster Prasar Bharati for flow problems, but has also said. In fact, there will be fewer can have 80-125 people.

B
lata.j@livemint.com April, May and June. resulted in an existential crisis ollywood won’t be the productions for a while “The increased costs on
NEW DELHI IBF is a not-for-profit body for many of IBF’s members. same when it resumes because production houses maintaining hygiene would be
representing the interests of The IBF also said that the production activity after will be strapped of funds. offset by reducing the number

T
he Indian Broadcasting
Foundation (IBF) has
written to Union minis-
ter of information and broad-
casting Prakash Javadekar
seeking government support
to deal with the economic cri-
sis in the television broadcast
sector due to the novel corona-
virus outbreak.
In a letter to Javadekar, the
IBF has requested a regulatory
moratorium for at least 18
months, phased resumption of
production activities, exten-
sion of moratorium period for
goods and services tax (GST)
payment, mandating digital
payments for subscription and
advertising dues to broadcast-
ers, besides increase in the
time period for operationaliza-
tion of new channels, which
were granted permission,
from one to two years.
It has also requested a
waiver on carriage fees to state
television broadcasters. directions of the ministry of the lockdown is lifted. “Everything can’t happen in of workers. We should look at
“The outbreak of the pan- home affairs have not reached Producers and entertain- one shot. Some filmmakers this optimistically, this will
demic and the subsequent district-level officials and, ment industry experts say could perhaps choose to shoot teach us to be more efficient.
lockdown have posed several therefore, employees involved helping cast and crew tide over in small towns or hill stations Over the years, we have always
challenges for the television in the day-to-today operations the fear psychosis of working that have been less affected by wondered why so many peo-
broadcast sector. With com- of the broadcasting industry in large teams is their single- the pandemic, ple need to be on
plete cessation of are facing prob- biggest concern, along with but a set in Mum- A lot of the work sets,” said pro-
production of tel- Advertisement lems in commut- ensuring sanitary conditions, Producers say helping cast and crew tide over the fear psychosis bai with 400 peo- on sets requires ducer-director
evision shows, bookings have ing to their work- which could escalate costs. of working in large teams on sets is their biggest concern. HT ple on board does touching of Siddharth Mal-
cancellations of nosedived by 50% place. The challenge is aggravated not seem feasi- equipment, so hotra.
live sporting in the wake of the The IBF has considering Mumbai, the lights-men and stuntmen have facilities to pick up and drop ble,” Sarkar said. Sameer Nair,
disinfecting after
events and submitted a Stan- entertainment hub and film returned to their native places employees instead of having Some of the CEO at Applause
virus outbreak, pack-up will be a Entertainment,
scheduled adver- dard Operating capital of India, currently and finding new trained work- them use public transport. A international
tisements, adver- says IBF president Procedure (SOP) stands ravaged by covid-19, ers will be a challenge. lot of the work on sets requires conglomerates regular feature said challenges
tisement book- N.P. Singh on safety meas- with more than 2,700 cases. This, at a time when the touching of equipment and operational in would be differ-
ings nosediving ures for orga- “Our film sets are extremely need for social distancing and sitting on furniture so cleaning Bollywood could ent for the limited
by 50%; delays in nized, safe and democratic in the sense that work from home has led to and disinfecting after pack-up lead the way, he said, setting timelines that films and web
payments by advertising agen- sustainable restart of opera- they employ everyone from surge in consumption of con- will be a regular feature. the mandate that others would shows follow compared with
cies and distribution platform tions in the broadcast sector to top-rung actors to daily tent worldwide leading to a Shibasish Sarkar, group then follow. the ongoing nature of televi-
operators, the broadcast sector the PMO, Niti Aayog and the wagers. Our biggest concern is demand for fresh material. CEO, Reliance Entertainment, That unit size will have to be sion shows.
is facing the brunt of the slow- I&B ministry. to convince all of them to con- Producers like Kumar sug- which has two big-ticket films smaller is a point filmmakers “It can’t be a one size fits all
down,” N.P. Singh, the IBF “The SOPs will help the gregate and create work,” said gest measures such as masks, scheduled for release, Soory- reiterate across the board. though we are all in the same
president, said in the letter. broadcast sector to move Siddharth Anand Kumar, vice- gloves, sanitizers and personal avanshi and ’83, does not see Reliance, for one, does not boat. But as an industry, we are
He said the broadcasting quickly towards normalcy and president, films and television, water bottles to keep washing partial normalcy in production intend to resume production working closely with the gov-
business has been hit both on we certainly hope that the gov- Saregama India. hands on sets, besides explor- before June, and completely with full team strength at least ernment and the various pro-
the demand and supply side, ernment would consider it He said most lower-rung ing a safe way to disinfect the before October. Given that from day one and will have ducers guilds to figure out a
which has not only led to cash favourably,” Singh added. workers such as painters, floors. There could also be entertainment is not a high- several people continue to way forward,” Nair said.

mint ently defective” as they show “inconclusive results” leading to Novartis, US FDA agree to malaria
repeated confirmatory tests. The ICMR-NICED authorities said
Flight restrictions to be lifted
SHORT TAKES it could be possibly because the kits “have not been standardized”
and it is considering the matter “very seriously”. The “high num-
ber of repeat/ confirmatory tests are causing delays and other
when covid is controlled: Puri
PRIYANKA PARASHAR/MINT
drug trial against coronavirus
Zurich: Novartis has won the
go-ahead from the US Food and
BLOOMBERG

AirAsia India cuts staff salaries
for April by up to 20%
MINT Mumbai: AirAsia India has cut
the April salary of its staff by up
to 20% to tackle the airline’s
finances amid the suspension of
commercial services till 3 May,
a person familiar with the mat-
ter said. Employees drawing a
salary of ₹50,000 per month or
less have been spared from the
wage cut. PTI
Covid-19 kits supplied by ICMR-
NICED defective, says WB govt
Kolkata: The West Bengal government has alleged that the cov-
id-19 testing kits supplied by the National Institute of Cholera and
Enteric Diseases (NICED)—Indian Council of Medical Research’s
(ICMR’s) nodal agency in the state—a fortnight ago, are “appar-
attendant problems at a time when we are battling a pandemic,”
it said, adding ICMR needs to look into it immediately. The
department claimed that the problem of defective kits has been
faced not just by government labs in the state but also by other
testing labs in the country. PTI
US wants to send team of experts
to China for virus probe: Trump
Washington:The US wants to send a team of experts to China
to investigate the coronavirus, President Donald Trump has said,
a day after he warned Beijing of “consequences” if it was know-
ingly responsible for the
REUTERS
spread of covid-19. “We spoke
to them (Chinese) a long time
ago about going in. We want to
go in. We want to see what’s
going on. And we weren’t
exactly invited, I can tell you
that,” the President told
reporters. PTI
TELEGRAM t.me/indiaepapers
Drug Administration (FDA) to
conduct a randomized trial of
malaria drug hydroxychloro-
quine against covid-19, the
Swiss drugmaker said on Mon-
day, to see if it helps patients.
The decades-old generic medi-
cine got FDA emergency use
authorization this month for its unapproved use for coronavirus
disease, but so far there is no scientific proof it works. REUTERS
New Delhi: The restrictions on domestic and interna-
tional flight operations will be lifted when the government Australia to make Google and
is confident that spread of the novel coronavirus has been
controlled, and poses no danger to Indians, civil aviation
Facebook pay for news content
minister Hardeep Singh Puri said on Monday, amid reports Canberra: Global digital platforms Google and Facebook will
of some airlines doing open bookings. In a series of tweets, be forced to pay for news content in Australia, the government
the minister also said a directive was issued on Sunday to said on Monday as the coronavirus pandemic causes a collapse
airlines, restraining them from doing open bookings since
they did not heed to the government’s advice in the matter.
PTI
in advertising revenue. Treasurer Josh Frydenberg said the Aus-
tralian Competition and Consumer Commission would release
in late July draft rules for the platforms to pay fair compensation
for the journalistic content siphoned from news media. AP
 Get Stock Market Updates from Telegram app: https://t.me/KittusWealthJourney

08 TUESDAY, 21 APRIL 2020

MUMBAI

REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE

STORIES FROM KERALA’S

SPIRITED VIRUS FIGHT
Though an early covid-19 hotspot, parts of Kerala are now out of a full lockdown. How did the state do it?

People stand in a queue outside a shop on the opening day of a once-a-week market in Kozhikode, Kerala, on Sunday. PTI

Nidheesh M.K. When the coronavirus threat began to
nidheesh.m@livemint.com
ERNAKULAM/KOCHI
trail every single individual, so did Ker-
ala’s society and government. After
becoming India’s first hotspot in early-
another part of Kerala reflects the societal EDGY MOMENTS received much acclaim for its successful
mint
response and the role of non-state actors.
A large group of people had gathered
with thick wooden logs in their hands in
SHORT
STORY M eanwhile, the scene inside the hos- handling of the Nipah virus, another vac-
pital in the neighbouring district cine-less, deadly virus.
had become edgy. Handling Reena’s But over the past few weeks, the con-

O
ne morning in March, a March, Kerala launched a large-scale Kumarakom, a tourist hub surrounded by grandparents, the 93-year-old Thomas cerns were not just confined to the realm
woman in Kerala’s Kasara- medical manhunt, akin to the Kasargod scenic backwaters and paddy fields. It had WHAT and 86-year-old Mariyamma (two of the of public health. The health success story
god district suddenly case, in order to trace, test and isolate been only hours since local television three who had returned from Italy and could not have been scripted without
developed a fever, along infected people. More than 100,000 peo- channels had reported that a three-mem- Seven districts in Kerala exited tested positive), was a real challenge and working on livelihood protection in paral-
with fits of coughing. Her ple were traced and placed under quaran- ber family who had returned from Italy the lockdown partially on they were transferred to the Kottayam lel. The state government had announced
husband had recently returned from a tine by 26 March, a day before the nation- were found to be covid-19 positive in the Monday. While the rest of India medical college from Pathanamthitta for India’s biggest regional stimulus (of
Gulf country, but he had been quickly iso- wide lockdown. Kasargod, the most-af- neighbouring Pathanamthitta district. worries about the number of better care. Thomas suffered a heart ₹20,000 crore) two days before the lock-
lated after being detected with the novel fected district, has been testing more than Kottayam resident Robin, and his wife days it takes for cases to double, attack, but his life was saved as doctors down.
coronavirus. The couple claimed they had 200 samples each day over the past Reena, had gone to the airport to receive here, active cases are going down from the cardiac, nephrology and urology The state also ran community kitchens
not even had a chance to meet each other month. the family, and now, the neighbours had departments were pulled together as a which fed lakhs of isolated people every
as they were both in quarantine. So, how While the rest of India worries about begun to make a ruckus about the threat team. day. Chief minister Pinarayi Vijayan
did she get the disease? the rate at which new cases are doubling, posed by the duo. Plans were being made HOW Even after he was out of danger, the job formed a volunteer force to run the kitch-
Public health investigators in the dis- that question has become almost irrele- to attack one of their shops in the neigh- was gruelling, said a nurse, requesting ens and it grew to more than 250,000
trict began to get nervous. If the woman vant in Kerala. Active cases are plummet- bourhood. After becoming India’s first anonymity. The 93-year-old Thomas was people in a week.
had acquired the infection from someone ing, not doubling. And only two patients Former Kottayam MLA and the ruling hotspot, it launched a large-scale resolute about his morning routine. For The planning also took into account the
else other than her husband, it could indi- have succumbed to covid-19 so far. Communist Party of India (Marxist) dis- operation to isolate the infected. instance, he told the nurse treating him people who otherwise face tragic hard-
cate community transmission. And that On 13 April, the state crossed a signifi- trict secretary V.N. Vasavan had watched And over 100,000 were placed that he wants to start his day with a glass of ships: domestic migrants, who set off on
would be a nightmare, especially because cant barrier: the share of fully recovered the same news report which had resulted under quarantine by 26 March, a milk “procured from a local dairy farm”. foot along highways in many other states.
Kasargod has the weakest public health patients exceeded the number of active in a mob outside Robin’s home. Like most day before the lockdown The nurses emptied milk from a retail They were offered free food and shelter. If
network in the state. covid-19 cases. In a clear sign of victory, politicians in Kerala, Vasavan was part of packet on to a dairy farm’s bottle every day they didn’t like the food, they were offered
What happened subsequently offers an seven districts, or half of Kerala, exited the a number of public groups and associa- and served Thomas. They also allowed the dry rations instead. The state as well as
instructive glimpse into how Kerala lockdown partially on Monday. The mood tions. He immediately called the local BUT duo to be unencumbered by face masks voluntary organizations arranged call
mounted a fightback against the virus—by has clearly shifted, with the police having panchayat president, got Robin’s contact while talking, as it made them uncomfort- centres in at least five languages com-
paying attention to the minutest of details. a hard time enforcing social distancing. details and dialled him. The fight is still on. The state is able—even though it placed additional monly spoken by migrants.
A list of people the woman had come in Evidently, the fight is still on. The state is “Robin, I saw the news. Don’t be afraid. already preparing for a possible safety requirements on the health staff. Vishnu Narendran, a Sussex university
contact with over the previous week was already preparing for a possible second This is not a deadly disease. Many have second wave. Scores of overseas At the end of Thomas’ hospital stay, fol- graduate who ran one of those call centres
drawn up, but the source of her infection wave. Scores of overseas workers are also recovered. We are all with you for any help workers are likely to return from lowing his recovery on 23 March, he was for distressed migrants, said that at its
remained a puzzle for the district’s team of likely to return from hotspots in the Gulf you need,” Vasavan recalled telling Robin. hotspots in the Gulf once travel too emotional to talk to reporters. He said peak, he was getting 40-45 calls every day.
six virus detectives, who were led by a doc- once international travel restrictions ease. “Brother, everybody who has called so far restrictions ease he was treated by the nurses as family. By One such call came during the break in a
tor. Finally, they passed on the case details For now, however, Kerala’s template has only scolded me,” responded Robin, then, a nurse who had treated the elderly prime-time television debate on migrant
to 20-odd neighbourhood-level health offers three important pointers for the rest who happens to be a former worker of duo, Reshma Mohandas, was infected. issues on 29 March. Since he was a panel-
workers who got in touch with the of India: the value of diverting significant Vasavan’s political nemesis, the Congress He then added: “Couldn’t this happen While Thomas became one of the oldest list on the show, Vishnu said he was in a
woman’s relatives. In the detailed inter- state resources every year towards build- party. Robin said he then broke down to any of us? If you attack their shops, it people in the world to have recovered meeting. “‘By the time your meeting is
views which followed, it came to light that ing public health infrastructure, trusting inside his washroom where he was holed will be global news (sic) and bring shame from covid-19, Mohandas became the first over, I’d have died’ said the caller,” Vishnu
she had been talking to everybody about village-level bodies with autonomy and up. to all Malayalees. Do we really want this?” health worker in Kerala to be infected. recounted.
some new saris. “We deduced that the funds, and promoting shared values that It happened to be a Sunday. Many of the The public meeting brought the crowd The news could have set off ripples of “I became all emotional. When the
husband, as is the local tradition with gulf encourage social cooperation. major public officials were not in town. under control. But the district needed shock and despair among the state’s debate resumed, the anchor asked some
returnees, may have “Health and education The district collector P.K. Sudheer Babu more than that. Roughly 600 residents health worker commu- questions and I broke
brought back some have always been a prior- was in Kannur. But the public health office were required to stick to measures aimed nity. But Mohandas down saying there are
gifts,” said one of the Kerala shows the value of ity in state budgets, irre- moved quickly. Vasavan himself took an at containing the virus. Many of them posted a personal note to The state administration’s people still starving in
virus detectives, diverting resources towards spective of the govern- ambulance from the district hospital, in weren’t cooperating at first. They asked colleagues on What- planning took into account the streets,” he said. The
requesting anonymity. ments,” said K.P. Kan- which he is a board member, and sped how they would survive without stepping sApp, brimming with panel had in attendance
By following the hints building health infrastructure, nan, a development towards Robin’s house. out of their homes. confidence and urging the plight of domestic the finance minister
hidden in those conver- trusting village-level bodies economist and former The house was in a densely populated “In the next one hour, we got groceries other health workers to migrants who set off on foot Thomas Isaac and
sations, they discovered director of the Centre for corner of the village, surrounded by poor and vegetables delivered to their door- not let the guard down, former labour minister
that the husband had with funds and promoting Development Studies. as well as middle-class families. Vasavan is steps and they got their answers. In the which went viral. “I will in other states. They were Shibu Baby John.
passed on a suitcase to “Kerala’s performance a popular local leader, but he said: following weeks, 500 books were leave this room within a Vishnu quickly con-
his wife before going values that back cooperation is the result of a long- “Nobody came to the street. When we arranged for them to read,” Vasavan said. week after defeating you offered free food and shelter nected the caller to a
into quarantine. Along term process of reached the house, the neighbours were “Social media groups were started with art (the coronavirus),” she community kitchen.
with that suitcase, the detectives con- strengthening the public healthcare sys- peeping through the windows. I realized competitions and yoga classes. Once their vowed in that note. “The sensitivity of people in the top of
cluded, he may have shared the coronavi- tem, in which people’s planning and Pan- everybody was gripped with fear.” basic needs were met, they stayed inside And she did. By 3 April, she tested cov- the governance chain in Kerala is way
rus too. chayati Raj institutions have achieved an Vasavan and others held a meeting at their homes,” he added. id-19 negative and was sent back home for ahead of other states,” said Benoy Peter,
The fact that some Kasaragod district important role at the grassroots-level,” the Kumarakom panchayat office, bring- To be sure, Vasavan is only representa- 14 days of self-quarantine. “I’ll be back an expert on internal migration and exec-
officials could figure out the mystery added Kannan. ing in a small fraction of the people who tive of a broader political culture that cuts soon,” she told reporters while leaving the utive director of the Centre for Migration
behind this one case may be the result of were gripped with fear. He started the across party lines. “A politician in Kerala is hospital. and Inclusive Development. “Initially, it
several factors—some of which exist per- FEAR AND PANIC
haps only in Kerala. It gives a peek into
what academics call the “Kerala Model” of
governance.
A round the same time that the Kasar-
god woman began displaying early
signs of the infection, what happened in
meeting by recalling a catchy line from a
play called Aswamedham that is etched in
the public imagination: “Is having a dis-
ease a crime?”
TELEGRAM
B
t.me/indiaepapers
rooted in a number of public groups and
associations. He cannot unplug. He has to
be seen as discharging his public duties,”
Kannan said.
ATTENTION BEYOND HEALTH
was a shock for the migrants in Kerala, like
anywhere else in India. Now, they have
efore the pandemic, the health accepted that the state is serious about
department in Kerala had already them.”
 Get Stock Market Updates from Telegram app: https://t.me/KittusWealthJourney

PERSONAL FINANCE TUESDAY, 21 APRIL 2020

MUMBAI 09

Health insurance to get If you don’t do digital banking

already, here’s what you can do
better, but more costly Tinesh Bhasin
tinesh.b@livemint.com
ISTOCK

I
f you are among those who
are not tech-savvy or prefer
to avoid online banking due
Health covers are more inclusive than before and high healthcare costs can hurt you to security reasons, now is the
time to shed that hesitation.
ISTOCK The post-covid-19 world will
Disha Sanghvi take social distancing far more
disha.s@livemint.com seriously and digital transac-
tion will become the need of

T
he global pandemic has
definitely helped people
realize the importance of
having adequate health
insurance. India is
among the least insured countries
and as of 2019, the density of non-
life (which includes health) insur-
ance in the country was a mere 19%,
according to data from the Insur-
ance Regulatory and Development
Authority of India (Irdai), and the
biggest reason for this is the lack of
trust. Density is measured as the
ratio of premium (in US dollars) to
total population. To deal with this,
the regulator last year brought
about a host of changes to health
insurance products which could
result in hike in premiums.
According to Policybazaar.com,
an online insurance marketplace,
health insurance premiums are set
to increase by 5-25% starting Octo-
ber 2020. “In its continuous efforts
to make health insurance products
more customer-centric, Irdai last
year issued various guidelines.
Insurers are trying to build innova-
tive products that apart from pro-
viding coverage as per the guide-
lines also focus on all-round well-
ness of policyholders. Having said
that, re-filing of health plans after
the revamp of the products will lead
to a price rise,” said Amit Chhabra,
health business head, Policyba-
zaar.com.
Unlike life insurance, where pre-
miums are fixed, health insurance
premiums vary every year depend-
ing on factors such as inflation. We
tell you the reasons for the possible
hike in premiums this time around.
apy, balloon sinuplasty, deep brain
stimulation, among others, will now
be included. These treatments shall
be covered either as in-patient or as
part of domiciliary hospitalization
or as daycare treatment in a hospi-
tal. Read more at bit.ly/3acQykO.
“Health insurance policies are
priced depending on the coverage
and the list of ailments included.
Since insurers don’t have adequate
historical data for the diseases
which were excluded earlier, the
premium rates will be based on
claim experience as well. There-
fore, depending on the claim inci-
dents and payouts, there is a possi-
bility that the premiums could be
revised again,” said Subrata Mon-
dal, executive vice-president, IFF-
the hour.
Many don’t use online bank-
Health ing due to security concerns.
insurers
have to
But there are ways you can
decide work around it. There are pay-
coronavirus ments and small finance banks
treatment that are now allowing individ-
claims
within two
uals to open savings accounts
hours sitting at home, using Aadhaar
bit.ly/2VlmbV9
for KYC (know your customer)
norms. Open a new account,
transfer a small amount to it
and use digital banking to get
familiar with the concept.
Once you feel confident, you
can shift to your primary
account.
Remember that most digital
banking services, including
money transfers, are free. Last
month, finance minister Nir-
mala Sitharaman also pro-
vided some relief to individu-
Chopra, a health insurance expert transparency and reduce confu- als for banking services. Banks
said, because large-scale pandem- sion,” said Mondal. will not levy any charges or
ics are a once-in-a-hundred-years If you still haven’t bought a penalties if customers are una-
phenomenon, the pricing was not health insurance policy, now is the ble to maintain the average
taken into consideration anywhere time to make that purchase. “The monthly or quarterly balance
in the world. “I don’t think anyone objective of the new guidelines is to in their bank accounts.
understood that the cost of treat- lower the rejection rate of claims “Customers can avail of
ment for pandemics could go as and the number of grievances. This 250-plus features on digital
high as ₹7.5 lakh if you get treated will further enhance trust among platforms (internet banking
in a private hospital. The cost can policyholders, and in turn, improve and mobile app). They can
go even higher if the patient is very overall penetration because policy- change their address, order a
critical. My understanding is that holders will begin to see value,” said cheque book, update their
there will be a review of the possi- Dr S. Prakash, managing director, KYC, among others. They can
bilities of how costs can go up Star Health and Allied Insurance even apply for a new credit
because this is something insurers Co. Ltd. card, loans, invest their money
and reinsurers are grappling with The current infrastructure of
currently,” added Chopra. government hospitals is not very
Though the claims ratio of pri- conducive and the facilities are
vate insurance companies is less often overcrowded. Chauhan said
than 100%, Chopra said it isn’t there is a general run for private
in fixed deposits or mutual and its PIN (personal identifi-
funds using digital platforms,” cation number). This is a one-
said Sameer Shetty, head, digi- time process. You can then set
tal banking, Axis Bank. a password to start using inter-
Until about a year ago, many net banking.
banks, especially public sector
ones, required customers to PRECAUTIONS TO TAKE
visit their branches to activate Ensure that the bank’s website
internet banking. But now you is the right one. The URL
can do so sitting at home. should start with “https”, not
Here’s the common procedure “http”. It means the website
that most banks has the required
follow to activate When security installed.
internet banking. downloading the Fake websites
Go to the inter- mobile banking don’t have the
net banking web- app, make sure address starting
site of the bank with “https”.
the app
and click on the When down-
“new u s e r ” developer is your l o a d i n g the
option. You will respective bank mobile banking
be taken through app, make sure
an authentication the app devel-
process using your customer oper is your respective bank.
ID and account number. The Read the comments to ensure
customer ID is mentioned in the app is from your bank.
all banking communications, All banking transactions
including your cheque book should be done on your home
and passbook. Most banks WiFi or mobile phone data.
send an OTP (one-time pass- Never use public WiFi.
word) on the registered mobile Use this lockdown as an
number. You will also need to opportunity to get used to dig-
key in your debit card number ital banking as it is the future.

INCREASE IN PREMIUMS
CO-Tokio General Insurance Co.
Ltd. This is definitely good news for
policyholders who didn’t under-
enough for them to absorb addi- hospitals where the cost of treat-
tional costs that could come by way ment is much higher. Such costs
of standardization or high-value are difficult to meet with your per-
You can transfer EPF balance to NRO
In order to remove ambiguities, in stand how exclusions in health covid-19 claims. “If insurers are sonal savings and more difficult to iStock
October last year, Irdai products worked until increasing the scope be borne in the event Archit Gupta dent Fund (EPF) balance. I had
put health insurers on Note that not all they filed a claim, but of the policy, they will You could use of a serious ailment. completed five years of service
a deadline to standard- health insurance the rise in premiums have to provision for cost-effective “The ongoing covid-19 I am a non-resident Indian with my previous employer.
ize exclusions, dis- companies may could become a deter- that. Mental illnesses options such as crisis should be a trig- (NRI). I have non-resident ordi- Can I file a withdrawal claim
eases or medical con- increase rent. were not covered ear- top-ups to ger for people to pur- nary (NRO) and non-resident and give the details of my NRO
ditions that are not Chhabra said the lier but now Irdai is chase health insur- external (NRE) bank accounts account for the transfer of the
premiums for enhance your
covered under a pol- regulator is aiming at asking insurers to ance, which is way in India. I want to transfer my EPF balance? Would there be
icy. The regulator existing improving service cover those as well. cover at more affordable than NRO account balance to my any additional tax deduction at
listed exclusions that policyholders standards in the health However, there is no affordable rates the cost of hospitaliza- NRE account held in the same source (TDS), considering the
will no longer be insurance sector, data available to know tion that one will have bank. According to the notifica- funds would be transferred to
allowed in health thereby broadening the cost that insurers to bear if infected,” tion by the Central Board of an NRO account?
insurance policies (not including the scope of coverage and making will incur in doing so. If insurers are added Chauhan. Direct Taxation (CBDT), Forms —Rohit Narula
personal accident and travel cov- the insurance buying journey easier increasing the premiums scientifi- Though premiums could go up, 15CA or 15CB are not required Since you have completed five
ers). Diseases contracted after buy- for consumers. “In order to make up cally and not abruptly just because remember that you could use cost- for this. However, the bank is years of service, you can withdraw
ing the policy (other than the con- for the more extensive coverage there’s an opportunity, then I think effective options such as top-ups asking me to submit them. The your EPF balance without facing
ditions excluded for which stan- that the new guidelines now cover, a 5-25% hike is fair,” he said. and family floater plans to enhance bank is justifying by citing strict any tax incidence. You can with-
dard wordings are prescribed by insurance companies are re-filing your cover at affordable rates. penalties and disclosures draw EPF balance after being out of
Irdai) cannot be excluded. Treat- their products at a revised pricing, WHY YOU SHOULD BUY “With the advent of top-up plans, required by the Reserve Bank of employment for 60 days after leav-
ment for mental illness, stress or making plans more comprehensive Medical inflation is increasing at policyholders have the option to India (RBI). What is the correct ing a job, even if you have not
ASK MINT
psychological and neurodegenera- for users,” added Chhabra. almost double the rate of overall combine a basic family floater plan position? How should I go m attained the age of 58 years.
tive disorders have also been Pankaj Chauhan, managing inflation and the cost of treatment, with a top-up plan to meet the need about transferring the balance N R I TA X AT I O N Please note that if you don’t with-
brought under the purview of director and chief executive officer, especially for modern technology for a higher sum insured. It is from one account to the other? draw it, you may be allowed to con-
health insurance. EPOCH Insurance Brokers, said treatments, is only going up. The observed that a basic plan is more —A.L. Chaudhary Do note that certain transfers do tinue to earn interest on your EPF
“If the increase in premiums is that given the current scenario, the new guidelines bind the insurer to expensive than a combination RBI allows individuals to transfer not require submission of Form balance until you are 58 years of
within the range of 5%, then it can industry may push for a premium standardize the exclusions and cover (for same sum insured) by an balances in their NRO account to 15CA or 15CB. The central bank has age.
be done on the basis of certification. increase of up to 10%. “But it will be cover procedures and treatments in average of 35-40%,” said Mondal. their NRE account within the over- listed such transfers separately. It is As such, there is no restriction on
But if the increase is more than 5%, difficult to get Irdai’s nod for an line with technical advances. “The Don’t delay buying health insur- all cap of $1 million in one financial advisable for you to involve an transfer of EPF balance to an NRO
then the regular process of file and increase exceeding 10% keeping in new guidelines allow policyholders ance just because premiums are year. It is also important to ensure expert and check whether your account. Since you have completed
use (re-filing) has to be followed,” view the past track record,” he said. to buy health insurance even with higher than expected, because with that taxes have been paid on these funds meet the criteria for transfer five years of continuous service
said Rashmi Nandargi, head, retail Whether the ongoing pan- existing conditions such as Parkin- the new guidelines, policies are funds before they can be trans- without the submission of these with your employer, you are not
health, personal accident and travel demic— for which the cost of treat- son’s and Alzheimer’s which are more inclusive than before. Also, ferred. To be able to make this forms. likely to face any TDS.
underwriting, Bajaj Allianz General ment in private hospitals can be considered high-risk by insurers. note that not all insurers may transfer, Form 15CA (self-certifica- Archit Gupta is founder and chief
Insurance Co Ltd. quite high— will have an impact on Insurers can make these diseases increase premiums for existing pol- tion) and Form 15CB (certificate I am an NRI. I was previously executive officer, ClearTax. Send in
Further, modern treatment premiums is something that permanent exclusions and cover icyholders. It makes sense to check from a chartered accountant) will employed in India, and want to your queries and views at mint-
methods such as oral chemother- remains to be seen. Mahavir the policyholder. This will improve with your insurer individually. need o be submitted to the bank. withdraw my Employees’ Provi- money@livemint.com

It’s a good time to increase exposure to the equity asset class cautiously, says Kalpen Parekh
Neil Borate ago, in 1999. He rose through ISTOCK
neil.b@livemint.com the ranks at various mutual
fund houses to become the 1 WHAT'S YOUR 6 HAVE YOUR 8 DO YOU
CURRENT GOALS BEEN INVEST IN

W
ith the markets slip- chief executive officer of IDFC ASSET MIX? AFFECTED?  GOLD?
ping because of the Asset Management Co. in 2012
covid-19 pandemic, before moving to DSP Mutual A Equity 44%  I live in a rented house YES
Kalpen Parekh, president, DSP Fund in 2017. B Debt* 41% and have been waiting for
Investment Managers Pvt. Ltd, He has seen multiple market the real estate prices to  I invested at low levels
plans to gradually add to his cycles and that is probably why C Gold 9% fall before I buy my own
equity holdings to benefit in Parekh has exposure to assets house. In the current NO
D Real estate 4% cycle as the real estate
the long term. He has such as debt and gold that have
E Alternative sector begins to bleed, I
increased his shielded his
equity allocation portfolio from asset class 2% intend to buy a house. I
will fund the property 9 DO YOU KEEP
by 8% by cau- the covid-19 from the debt portion of MORE CASH
tiously rebalan- market correc- my portfolio NOW?
cing into the VIRUS EFFECT tion. In fact, he 2 IMPACT OF Kalpen Parekh
asset. In the sixth invested in gold COVID-19 ON YES
part of a special TAKING STOCK in the last two YOUR ASSETS
Mint series, years as the yel- A Equity -22% 3 ARE YOU SHIFT- 4 ARE YOU 5 WHAT WORKED 7 WILL YOU INVEST NO
where we talk to industry lead- low metal was at a multi-year
ING EQUITY SHIFTING DEBT FOR YOU AND IN FOREIGN
ers to know about the changes low; he feels it is expected to do B Debt 10% SEGMENTS?  CATEGORIES?  WHAT DIDN’T? FUNDS?  Investing in equity instead
they are making to their invest- well as traditional assets C Gold 30% YES YES YES
 Investment in gold and
ment portfolios given the cur- underperform.
D Real estate NA debt mutual funds
rent crisis, Parekh said he has He intends to buy a house as I increased my equity I have shifted 5% debt
worked well for me but
 12% of my equity 10 HOW BIG IS
also shifted some of his debt the real estate market begins E Alternative exposure by 8% to equity
those in equity mutual
portfolio is in foreign funds YOUR EMER-
portfolio to equity. to bleed from the crisis. Inter-
Parekh began his career in estingly, 65% of Parekh’s sav-
the asset management indus- ings are in schemes of DSP
try more than two decades Mutual Fund.
asset class

*Don't know exactly

12%
NO
TELEGRAM t.me/indiaepapers
NO
funds didn’t work well, in
the last one year NO
GENCY FUND?
 Expenses for two years
SANTOSH SHARMA/MINT
 Get Stock Market Updates from Telegram app: https://t.me/KittusWealthJourney

10 TUESDAY, 21 APRIL 2020

MUMBAI VIEWS

OUR VIEW MY VIEW | BARE TALK

SAMIR JANA/HT

Those in panic need a sense of

perspective on this pandemic
The West’s disproportionate reaction to its last crisis necessitated its economic response to this one

not more. In fact, the indigent are rela-
tively ill-equipped to handle the health
consequences of environmental pollu-
tion, and a lost day of work due to illness
is a lost day of earnings. Factoring eco-
logical concerns into economic growth
aspirations is therefore pro- rather than
anti-poor. Further, investments made
to safeguard flora and fauna also con-
V. ANANTHA NAGESWARAN tribute to the process of economic
is member of the Economic Advisory growth. Therefore, a better balance
wrote in The New Yorker, “the economy
had a pre-existing condition—debt,
instead of pulmonary disease. Corpo-
rate debt, high-yield debt, distressed
debt, student debt, consumer debt,
mortgage debt, sovereign debt” (The
Price Of The Coronavirus Pandemic,
13 April 2020). One disproportionate
reaction, to the 2008 crisis, set up eco-
nomic conditions that have now led to
another disproportionate reaction, this

Key sectors of India’s

Council to the Prime Minister between environmental and economic
imperatives could be a win-win for
both.
However, the question is whether the
pandemic and the consequences that
time to the covid crisis.
Then, let us take the media reaction.
One of my good friends who was with
the mainstream media reacts rather
badly whenever I point fingers at some

economy need support N

early a month ago, Fritjof Capra
of Tao Of Physics fame wrote a
long article looking back from
2050. It re-imagined a world in which
we are grappling with will reshape
human perspectives along these lines.
The evidence so far is mixed, at best,
and absent at worst. Take the sale of
of these media outlets and complain
how information from them is some-
times indistinguishable from what one
receives from social media sources.
humans lived in harmony with nature. food and beverages in the US, which are Over time, more and more opinions
They travelled less; they connected part of a monthly retail sales report. The have come masquerading as news and
A stimulus plan should aim for a broad revival of value generation across the country. with their communities. They ate what amount of food and beverages that information.
they grew organically in their neigh- Americans bought in the month of But, quite apart from these, the way
Sectors that have suffered a covid contraction need direct government help. It’s possible bourhood. They respected the environ- March 2020 exceeded their purchases the pandemic has been covered also
ment and they allowed the damage they of these in the previous nine years. A makes me pessimistic about the ability
had caused it to reverse. It was a mes- tweet by David Rosenberg, former of our species to learn the right lessons
sage of hope that Homo sapiens would chief economist for Merrill Lynch in from it. Some reports over the weekend

T
he wait for a big fiscal stimulus—
worth ₹10 trillion or thereabout—
to revive India’s economy has
begun to seem endless. Might the
finer details be holding it back?
Given the devastation wrought
by the covid pandemic and the lockdown
induced by it, the broad requirements are
well known. For the poor, more money is
needed for food relief. The outlay on our rural
employment guarantee scheme needs to be
enlarged. The Centre should also provide
universal basic relief in the form of direct
cash transfers to all citizens, with the better
off publicly asked to “give it up”. As this sum
will be too small to help taxpayers who lose
their income in this crisis, this group should
be given back their income tax payments of
the last financial year, on the condition that
the money is restored to the tax kitty in stages
once they start earning again. To reduce job
losses, meanwhile, a wage bill subsidy could
be offered to employers that do not lay work-
ers off. To be sure, businesses would need far
more support than that, given how badly their
finances have been squeezed by the lockdown
biles, real estate and textiles next. All of these learn to live in harmony with nature and North America, alerted me to this fact. seemed to suggest that the covid cases
could see more than half their output vanish other life forms, rather than living in I checked the data and he was not in India were out of control. These
perpetual conflict with them. For some exaggerating. The scale of panic-buying lacked a sense of perspective on how
this quarter. Freight and logistics, metals and strange reason, the article did not circu- in the US was astounding. Imagine bad the problem is, especially in com-
mining, oil and gas, power, consumer goods late as widely as I expected. hoarding products that would have parison with other problems that we
and retail industries are expected to shrink Then, sometime later, I saw a Bloom- taken 108 months to sell in normal face in the country.
too, but not so sharply. A sector-by-sector berg story on clean air in Indian cities. times. This is not a reassuring sign of A balanced perspective came from
Videos of people watching Himalayan humans learning the right lessons from Abhishek De. In an article (India’s Top
analysis could be done to calibrate the help peaks from Amritsar were doing the the covid-19 pandemic. Infectious Disease Killed Over 4,40,000
to be offered, with a window opened for all rounds. A resident of Delhi quipped that However, it was not just regular US People In 2018, 17 April 2020) for the
businesses in each selected sector that meet the air in Delhi felt like mountain air. citizens who panicked. Policymakers Indian Express, he reminded us that
a public set of norms. Any scheme devised Clearly, the pandemic-induced lock- did too, both in their immediate reac- India’s top infectious disease was
would have to keep arbitrary decisions to a down was a controlled experiment that tions to the threat of covid-19, based on Tuberculosis (TB), that it had killed over
no government would have attempted unverifiable claims arising out of data 400,000 people every year in the three
minimum. Perhaps a good mechanism, as used in normal times. It was as though nature and models that look dubious, and in years from 2016 to 2018, and that its
in the West, would be to have the Centre sub- had designed this experiment to reveal their economic policy responses. fatality rate was over 20%. Yet, we see
scribe to low-coupon debentures that get con- the stark trade-off between economic Central banks and governments no boxes or mini-screens showing
verted into equity if the bailed-out company growth and the environment. across the world have pressed the panic India’s annual TB cases and fatalities.
fails to meet its repayment within a predefined Many dismissed the environmental button all at once, creating the potential So, was Fritjof Capra being naïve?
improvement as a fetish of the rich, not- for moral hazard and destabilizing eco- Perhaps not. We could learn from
frame of time. The limits of forbearance, ing that it had come at the cost of liveli- nomic, social and political consequen- nature. Within a week or two of the
though, could be kept open to revision in case hoods of the poor. This is true only up to ces in the years ahead. lockdown, it revealed its beauty to us. Is
the economy does not recover its pre-covid a point. Air and water pollution hurt the That is how they reacted to the crisis it too difficult to learn from it?
trend by the end of 2020-21. Companies avail- poor as much as they harm the rich, if of 2008. As a result, as Nick Paumgarten These are the author’s personal views
ing of the deal would need to watch out for
a loss of management control, which should
encourage them to cap the loans they take,
even as the government keeps a plan ready to
offload the shares it might end up owning.
The general principle of a fiscal package www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Chandigarh*, Pune* Wednesday, April 21, 2010 Vol.4 No.94 Rs. 3.00 24 PAGES
+ 4 PAGES MARKETS WATCH

and the likely second-order economic effects should be to help all participants in the econ- A tribute to
MANAGEMENT:
CK Prahalad >10

of the covid shock. Small enterprises are
omy survive the Great Lockdown. The net EXCLUSIVE PARTNER
WSJ: Goldman Sachs net profit soars
91% to $3.46 billion >18
CORPORATE: Outlook brightens for biz,
hiring in Q1, says Teamlease survey >8

the most vulnerable, but all businesses now result of the exercise could be an expansion of SENSEX 17,460.58 Æ 59.90 NIFTY 5,230.10 Æ 26.45 DOLLAR Rs44.49 æ Re0.24 EURO Rs59.96 æ Re0.15 GOLD Rs16,625 Æ Rs120 OIL $85.28 Æ $0.81

We can’t save the world by

MONETARY POLICY CAPITAL RESTRUCTURING

appear acutely short of capital, even large
What’s inside
both the central bank’s balance sheet and the Leading airport retail firm Nuance Group is exiting its
duty free shop at Hyderabad international airport due to
RBI increases MCX, FTIL get
warrants in lieu of
rates 25 bps to shares in MCX-SX
sluggish sales. The group is also considering exiting its
duty-free outlet at the Bangalore international airport,
effectively putting an end to a joint venture with
Shopper’s Stop Ltd. >P9

ones. If special credit facilities for businesses government’s holdings, apart from a larger playing by the rules, because
LEADING THE NEWS CORPORATE NEWS

BSNL’s divestment has been
put on hold following gov-
ernment assurances to stri-
king employees. >P3
***
Cipla says it’s ready to
share with the government
tame inflation
B Y M OBIS P HILIPOSE & 70.9% to 10%, the two companies
Brothers Kapil and Dheeraj N . S UNDARESHA still have warrants amounting to
Wadhawan have floated a S UBRAMANIAN 60% ownership (once they are
new realty business that is ························· converted). Instead of selling
MUMBAI equity shares, they can now sell
set to give competition to
Central bank action is
cousin Sarang Wadhawan’s
HDIL.
***
>P8 cheered by markets;
BALANCING ACT
Despite inflation worries, (in %)
T he two promoters of MCX
Stock Exchange Ltd (MCX-
SX) have reduced their aggregate
warrants to interested investors
since these can be converted
into equity shares. At the same
governor Subbarao

are to be extended via the banking system, national debt figure. These entail economic
RBI is optimistic on the
the technology for low-cost Unitech will spin off its stake in the company from 70% time, MCX-SX has complied with
growth front. 2009-10 2010-11*
versions of its non-core businesses, in- leaves himself room for to 10% (5% each, in keeping with Sebi’s ownership norms since

the rules have to be changed.

drugs for the cluding investments in tele- 9.9 regulatory requirements), but it convertible warrants aren’t
treatment of communications and ho- further rate action Inflation
5.5 emerges that they have been counted as part of equity owner-
cancer and tels, into a separate compa- awarded warrants amounting to ship for the purposes of this reg-
ny called Unitech Infra, B Y A NITA B HOIR GDP 7.2** 60% ownership in the firm. ulation.
HIV/AIDS to
meet local currently a wholly owned anita.b@livemint.com 8 The firm last week announced Joseph Massey, managing di-
demand. >P8 subsidiary. >P8 ························· 16.9 the capital restructuring pro- rector and CEO of the exchange,
MUMBAI Credit
20 gramme through a scheme of re- said: “As has been stated in the

then the government must backstop these risks to future stability that must be weighed T
THE WALL STREET JOURNAL he Reserve Bank of India duction of capital. This removed said press release, a scheme of
17
Some European airports (RBI) on Tuesday in- Deposit
18
a significant hurdle in the com- reduction of capital under Com-
reopen despite caution creased key policy rates pany launching contracts in new panies Act has been approved by
ATCs give the go-ahead for the by 25 basis points (bps) to tame 16.8 segments such as equities and the board, shareholders in EGM
M3

Everything needs to change

resumption of some flights, but inflationary expectations, sus- 17 interest rates. India’s stock mar- and by high court—Mumbai. In
with conditions remaining vari- tain economic growth momen- *Projections **Estimated Source: RBI
ket regulator, the Securities and terms of the said scheme, the ex-
able, airlines remain uncertain tum and accommodate the Exchange Board of India (Sebi), cess shareholding beyond
AHMED RAZA KHAN/MINT
about their plans. >P18 government’s borrowing plan. mandates that an individual or MIMPS Regulations held by FT,
It raised the repo rate—at ALSO SEE corporate entity can own only up MCX and ILFS has been can-

loans. For sectors that have suffered griev- against the pain of a prolonged slump, emerg-
MONEY MATTERS
Loan outstandings of Axis
Bank have risen by 23%
between December and
March. After a short hiatus,
which it lends to commercial
VIEWS banks—by 25 bps to 5.25% and
Brahma Chel- the reverse repo rate—at
laney says de- which banks park excess cash
veloping inter- with the central bank—by the
continental same amount to 3.75%. RBI
>SUBBARAO INTERVIEW: ‘Need to look at
freeing savings rate’
> CAPITAL ACCOUNT: Yawning gulf
> BANKER’S TRUST: A case of the fisc
determining policy
> Handle-with-care policy stays
to 5% in an exchange (banks and
public finance institutions can
>P4
own up to 15%).
>P4
Details of the capital restruct-
>P6 uring scheme reviewed by Mint
>P6 show that while the stake of Mul-
celled by reduction of capital
and warrants have been issued
in lieu of the reduced sharehold-
ing in terms of the scheme.”
MIMPS stands for Sebi’s
Manner of Increasing and Main-

—and it has to start today.

loan growth is back at the ballistic mis- also increased the cash reserve > RBI moves closer to a neutral stance >P6 ti Commodity Exchange of India taining Public Shareholding in
bank. The improvement in siles is crucial ratio (CRR), the portion of de- > Our View: Not giving in to panic >P22 Ltd (MCX) and Financial Tech- Recognised Exchanges rules.
the economy is expected to if India is to have a credible > DIFFERENT ANGLE: Staying ahead nologies (India) Ltd (FTIL) in

ously, it could even consider direct bailouts. ing from which may prove difficult if the
lower bad loans and deterrence and power-pro- TURN TO PAGE 2® of the curve >P22 MCX-SX had come down from TURN TO PAGE 3®
provisions. Axis Bank is jection force as it aspires for
also expected to do better global power status. >P23
than most other banks in a
time of rising interest rates
because of its high current Pawar backs
and savings account
deposits and net interest
margins, says Mark to
move to eject
Modi from IPL
The sectors picked for fiscal relief would country is strewn with the debris of collapses.
Market. >P14

5 EARTH B Y P RIYANKA M EHRA

(AND MONEY)
SAVERS
No huge sacrifices, no low-tech
life—these simple choices will fit
sustainably into your lifestyle and help
D AYAL & L IZ M ATHEW
·························
NEW DELHI
E ven as the government
stepped up its investiga-

need to follow some objective criterion, such Early action that keeps commerce going and
save the planet too. Make the switch
tion of the Indian Premier

G R E TA THU N B E RG
tomorrow, on Earth Day, and save
Rs3,000 or more a year. >P12-13 League (IPL) with the Registrar
of Companies (RoC) reviewing
the equity holdings of the fran-
chisees, there were fresh indi-
cations that Lalit Modi would
be pressured to relinquish his
QUICK EDIT job as IPL commissioner.
While Modi remained ada-

as the extent of damage inflicted by the crisis. people employed could contain the possibil- Time to short earth? mant that he would not step
down, the odds of him staying
on in the job worsened after

A irline stocks collapsed

across the world as
investors tracked the dark
clouds of ash over European
skies. Some economists have
even warned that if the
For instance, returns from
stocks tend to be significantly
lower during the hot season and
fall months than during winter
and spring months. In India, all
investors pray for a normal
Sharad Pawar, former presi-
dent of the Board of Control
for Cricket in India (BCCI) and
food and agriculture minister,
gave the go-ahead to the move
to remove Modi following a se-

Available estimates suggest that the most ity of tumultuous times ahead. India should
disruptions from Iceland’s
volcanic eruption are not
resolved soon enough, it could
hit European economies just as
they are emerging from a
debilitating slowdown.
All investors know that
commodities markets can
plunge or soar because of the
monsoon at this time of the
year.
Experts say that in the coming
years, climate change could
lead to more earthquakes,
tsunamis, volcanic eruptions
and landslides. In Iran, they
even want to move the capital
out of Tehran because it’s
ries of meetings during the day
with finance minister Pranab
Mukherjee and home minister
P. Chidamabaram. Pawar also
met Shashank Manohar, who
is currently the president of
BCCI, to discuss the issue but
declined to divulge details.
While Pawar could not be

severely disrupted sectors include civil avia- not dither over launching a rescue, but find
weather, but many researchers
have previously proved that the
weather and stock markets are
also closely linked.
susceptible to earthquakes. reached, two people familiar
Maybe it’s time investors with the developments, but
tracked nature as closely as they who did not want to be identi-
do technicals. fied maintained that the minis-

Mint is also available for Rs5.50 with Hindustan Times under a combo offer TURN TO PAGE 3®

tion, hospitality and tourism, with automo- the money.

MY VIEW | MUSING MACRO

The big funding challenge that small businesses face

their inputs, as also for salaries, but wait to
AJIT RANADE receive payments. This is their working cap-
ital cycle. A large number of MSMEs are sup-
pliers to large corporations and the govern-
ment. In times of stress, they face delays in
getting paid. This adds to their cash flow
of lazy banking that only chases fat cat bor- thanks to the non-banking sector crisis fol- face value. But despite what was practically
rowers and ignores the rest. lowing the IL&FS fiasco. So what happened? a diktat issued by the government to use this
Over the years, several reforms have been The funds allegedly got cornered by large platform, it has only met with limited suc-
introduced, including a mandatory quota for corporates, including public sector entities, cess. There was news recently of defaults on
“priority sector loans” to SMEs. We now also some of which probably refinanced their some receivables, which has made TREDS
have a bankruptcy law that empowers small more expensive term loans with cheaper participants wary of picking up discounted

T
he present pandemic-induced lock-
down has exposed the vulnerability of
a large part of India’s labour force.
These are the daily wage earners and work-
ers in the informal sector. Their livelihoods
are precarious, earnings barely enough to
make ends meet, and they do not have finan-
cial savings to fall back on. Unlike in devel-
problems. In circumstances like the present
lockdown, these can get worse because their
customers also run out of cash.
The challenge of providing adequate
finance to small and medium enterprises
(SMEs) is an age-old one, faced not just by
India. Apart from delayed payments, and
managing cash flow mismatches, their other
creditors by allowing them to move the LTRO funds. Thus, RBI was forced to come bills. So SMEs are once again stuck with an
courts if payments are out with another LTRO unhelpful reform.
delayed. Newer methods of window that specified sub- A third example is of a portal organized by
providing loans based on Their credit quotas to be lent to small the Tamil Nadu state government, which
credit scores, receivables borrowers. The success of puts large companies delaying payments
or social media profiles lines get cut off, this micro-management under a broader gaze. An SME creditor is
have been tried. Some remains to be seen. You expected to list a pending payment on this
banks and non-bank len-
especially in can take a horse to the portal, so that the matter gets “escalated”

is an economist and
oped economies, they do not even have
social security to bank on. They may be just
a senior fellow at The
Takshashila Institution
above the poverty line, but switch off the
economy even for a week, and they fall
below it. What is true for this large class of
workers is also true for micro, small and
medium enterprises (MSMEs). India has an
estimated 63 million of them. Their exis-
tence is not hand-to-mouth, like that of
workers, but in many ways their predica-
ment is the same. If their revenue stops for a
month or two, their viability is imperilled.
Typically, their enterprise involves securing
inputs (or finished products, if they are trad-
ers), and selling their output against credit.
Thus, most of them have to pay upfront for
challenge is to secure funding for business,
both in the form of equity and debt. A
U.K.-Sinha-headed committee comprehen-
sively captured their funding challenges and
proposed solutions in a report that it submit-
ted to the Reserve Bank of India (RBI) last
year. However, this is not the first such
report, nor will it be the last one. India has
grappled with this challenge for several dec-
ades. One has only to read the speeches of
past RBI governors to find recurrent men-
tions of it. Their main challenge, however, is
not the cost of credit, but access to it. Some-
times, it is simply not forthcoming. This may
be due to the classic problem of “adverse
selection” and risk perceptions, or because
ders have formed unique
templates for retail lend-
crises, and they water, but can you make it
drink? Extreme risk aver-
upward, in a manner of speaking. It is a de
facto “naming and shaming” tool. But which
ing. We also have a stock
exchange exclusively for
need policy sion sets in during a reces-
sion, and it is usually SMEs
SME would want to earn the displeasure of
a large and perhaps only customer? So this
SMEs with a lighter disclo- support to keep that are worst affected and initiative too has met with limited success
sure burden to enable eas- need the most assistance. despite the best of intentions.
ier equity funding. But funds flowing Unthinkable as it may In the present unprecedented situation,
their challenge remains. sound, RBI may have to the Centre should provide fiscal support.
Three recent examples take the credit risk of SME This could be either through a large interest
illustrate the problem, and why it is such a loans upon itself to get funds flowing. rate subvention or a moratorium on working
tough nut to crack. As part of its monetary Another example is that of the Trade capital loan repayments, available to all
stimulus, RBI introduced long-term repo Receivables Electronic Discounting System SMEs, regardless of sector, as long as their
TELEGRAM t.me/indiaepapers
operations (LTRO), through which it pro-
vides banks cheap funding for long periods.
The idea was to get credit flowing to needy
SMEs that were already facing a crunch
(TREDS), a platform for discounting bills. An
SME facing a payment delay can put up its
receivables for sale, and someone else could
acquire this asset by paying, say, 90% of its
loans are in good standing and where the
amount is below a certain threshold (say, ₹5
crore). Such a measure might just help ease
an old problem in these difficult times.
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NEWS TUESDAY, 21 APRIL 2020

MUMBAI 11

UK court quashes Mallya’s STRAIGHT

F O R WA R D
plea against extradition SHASHI SHEKHAR

Respond to this column at

feedback@livemint.com

Sadia Mufti, a fashion designer

in Srinagar, has turned to
making masks and PPEs. The move marks a win for CBI and ED, which had been seeking his extradition since 2018
NO SUPERPOWER
J&K women Shaswati Das
HAS COPYRIGHT ON
adapt to
shaswati.d@livemint.com
NEW DELHI THE WILL TO LIVE
lockdown
T
he UK High Court on

rules
FROM PAGE 1
ways to offer online education
and door-to-door delivery of
services in a place without 4G
connectivity.
At this time of the year,
Mufti is usually busy with
orders for weddings but that’s
come to a halt now. Kashmir
has close to 80 confirmed
positive cases of covid-19.
“Curfews are normal in Kash-
mir, but even last August
(when Jammu and Kashmir
was made a Union Territory),
we had some work. This time,
zero,” she says.
Dr. Shazia Safi owns and
runs the only clinic in Shah-
pur. Until she built it two
years ago, locals had to travel
15km to reach the nearest hos-
pital in Jammu city. “Both
Internet and telephone servi-
ces are bad here. People had
to wait hours for ambulances
to come all the way from
Jammu,” says Safi, 34.
When people tested posi-
tive in Jammu (it currently
has 27 cases), she wrote to the
health ministry offering to
turn her clinic into a quaran-
tine centre. “Two days ago, we
got the go-ahead, and are
making the required changes
to the centre. Luckily, there
haven’t been cases yet, but we
are ready.”
Aarti Dhingra, 35, who
started the first women-only
fitness centre in Jammu 11
years ago, has moved her
classes online for free. “It’s a
tough time for all of us. So I try
to do my bit to help people
unwind and take care of their
health,” says Dhingra, who
has seen a 100% increase in
her social media followers in
the past three weeks.
Tripta Saroch, owner of a
dairy farm in Narwal, Jammu,
has started going door-to-
door to take orders and dis-
tribute milk. “All shops in our
area are shut so people are
depending on us for milk. The
demand has increased 100%
since the lockdown started,”
says Saroch, 34, a sociology
graduate. She gives milk and
at least five food kits free
every day to the needy.
Setting up an online service
is out of the question since
connectivity is poor.
She has stopped making
cheese and curd to meet the
increased demand for milk.
“Milk demand has gone up to
two quintals a day. Cheese
and curd will bring in more
money, but these are trying
times,” she says. “We are not
looking to profit now. People
need us.”
D
Monday rejected UB Silver onald Trump, who is considered to be the most powerful
linings amid
Group chairman Vijay coronavirus
person, has once more stated that if China had wanted, the
Mallya’s plea against his
extradition to India.
crisis: What
we have
covid-19 pandemic would not have spread across the world.
Right since it started, he has been calling it the “China virus”
The verdict marks a win for the learnt so far instead of covid-19. Various world leaders, despite their own mis-
Central Bureau of Investigation and bit.ly/3briCSY takes, have been shifting the blame on others in their unique styles.
the Enforcement Directorate, which Trump has created a new record in this. His own country is in the
had been seeking Mallya’s extradi- grip of this epidemic and is trying hard to grapple with it. He is
tion since 2018. being accused of not taking action well in time. When the scientists
In February, UK’s Royal Courts of warned him, he argued that whosoever has the grit will survive.
Justice started hearing fugitive Mal- America is paying a heavy price for its conceited pride over its
lya’s plea against his extradition to strength. In such a situation, does Trump have no other option but
India to face charges of fraud and to blame others? He is not only blaming, but also threatening with
money laundering amounting to consequences.
₹9,000 crore. The pandemic has taken us in its grip today, but it will go sooner
The 64-year-old former King- or later. But it will leave behind this impression that no superpower
fisher Airlines boss, who is out on has a copyright on the will to live. Figures and data are witness to
bail since his arrest on an extradition the fact that due to the timely implementation of lockdown in
warrant in April 2017, had sought India, this epidemic could be controlled to a large extent. The
permission from the high court to Vijay Mallya, who is out on bail since his arrest on an extradition warrant in April 2017, had sought permission from deadly effect of this virus was at its peak two weeks ago—the num-
appeal against the extradition order. the UK high court to appeal against the extradition order. REUTERS ber of infected people was doubling in three days. But now, the
Lord Justice Stephen Irwin and Jus- pace has almost halved.
tice Elisabeth Laing, the two-member India,” the CBI said in a statement. tions to the Supreme Court of India If he does apply, the UK Home Let’s begin with the example of Kerala. When Kerala enforced
bench at the Royal Courts of Justice in Earlier this month, the high court and his settlement proposal before Office will wait for the outcome of lockdown, the number of infected people there too doubled in
London, dismissed the appeal in a in London had deferred hearings on the Karnataka high court are deter- that appeal. However, if Mallya does three days. According to the latest data, now the number of
judgement handed down remotely a plea by the SBI-led consortium of mined, allowing him time to repay not file an appeal, under the infected people are doubling in 50 days. Likewise, Punjab too
due to the coronavirus lockdown. Indian banks, seeking the indebted his debts to the banks in full. India-UK Extradition Treaty, it could achieve this record of ‘three to 30 days’ because it followed
“We consider that while the scope tycoon to be declared bankrupt to The dismissal of the high court’s would then be expected to formally the lockdown strictly. Rajasthan, Telangana, Andhra Pradesh,
of the prima facie case found by the enable them to recover their loans appeal effectively clears the decks certify the court order for Mallya to Tamil Nadu and Odisha have also been performing well in this
SDJ (senior district judge) is be extradited to India within regard. In Bihar and Uttar Pradesh, this graph fluctuated rapidly
in some respects wider than CLEARING THE DECKS 28 days. going up and down, but now it is steadily heading south. The next
that alleged by the respond- The UK Court noted: two weeks are going to be very important and crucial for these two
ent in India (CBI and ED), IN February, UK’s MALLYA faces THE court dismissed THE dismissal of the “The appellant was party to densely populated states.
there is a prima facie case Royal Courts of
Justice started
charges of fraud and the plea in a ruling
money laundering handed down
plea effectively
clears the decks for
false representations about The opposition alleges that lockdown is only an immediate rem-
which, in seven important hearing Mallya’s plea amounting to remotely due to the Mallya’s extradition inward investment, an exag- edy. They say that more and more peo-
respects, coincides with the against his extradition ₹9,000 crore in India coronavirus lockdown to India gerated brand value, mis- The next two ple should be tested so that even if the
allegations in India,” the leading growth forecasts, weeks will be viral load is less in someone, he too can
judges ruled. inconsistent business plans.
“The UK high court has dismissed from him. for Mallya’s extradition to India to The appellant’s dishonest intention very important be identified and treated. The example
of Maharashtra is before us. The num-
Vijay Mallya’s appeal against his Justice Michael Briggs of the face the charges in Indian courts, not to repay loans is shown by his and crucial for ber of cases appeared there were the
extradition. It is a significant achieve- insolvency division of the high court with 14 days for him to apply for per- later conduct in trying to avoid per- Bihar and highest because the testing rate was also
ment in continuing the war against granted relief to Mallya, ruling that mission to appeal to the UK sonal and corporate guarantees.” Uttar Pradesh the highest in Maharashtra. It’s a matter
fugitives who have escaped from he should be given time till his peti- Supreme Court. PTI contributed to this story . of relief that in this regard, the central
and state governments performed in an
excellent and efficient manner. Till last Friday, about 650,000
safety kits had been imported from China alone. During this time,
the states also developed its own testing capacity. Uttar Pradesh
chief minister Yogi Adityanath personally took charge of the situa-
Agrarian economy poised for a revival as curbs eased tion and the state capacity of testing 200 people a day reached
2,600 a day within three weeks. The same happened in other
states, too. About 400,000 tests had been conducted by the time
this column was penned. As the testing kits reach distant areas, the
FROM PAGE 1 “We wear masks and step Chief minister Manohal Lal speed of testing will also increase.
out. To sell our goods we will Khattar has said his govern- This is why the government relaxed some restrictions and
farms. have to go to the mandi. How ment will procure every single allowed limited activities. Although, at this point in time, we will
Wheat procurement in can we observe distance there? grain produced in Haryana, be deceiving ourselves to assume that the sting of the coronavirus
states like Haryana and Punjab We worry about our health as and urged commission agents has been taken out. In a large and diverse country like India, the
usually begins on 1 April but it well, but this is our year’s earn- to help out farmers in this time conclusions cannot be drawn so easily.
was delayed this year due to ing,” he added. of crisis. Mustard and wheat While the government was enforcing the nationwide lockdown
the covid-19 restrictions. Even as farmers were procurement, respectively and some were following it earnestly, on the other, a handful of
Unseasonal rain last week have allowed to continue to work in commenced from 15 and 20 political leaders were busy making a mockery of it. A large number
added to the delay. the first three weeks of the ini- April. of people attended the wedding of former Karnataka chief minister
On Monday, Dharambir tial lockdown, the procure- Prime Minister Narendra H.D. Kumaraswamy’s son and the formula of social distancing was
Saini in Dhar village in Panipat ment of fertilizers and seeds Modi said last week that completely ignored by the enthusiastic people. This ignorance is
district of Haryana managed to was proving to be a challenge, although the lockdown will disturbing. How much difference is there between a common man
hire a harvester to cut the as was the lack of labour and continue till 3 May, there will and a VIP? An example. On the same day when Kumaraswamy’s
wheat crop in his five-acre farm machines. be fewer restrictions for dis- son’s marriage took place, thousands of kilometres away in Dibdiba
land. The crop has been sitting Even as farmers were allowed to continue to work in the first Ramphal Pandit, a farmer in tricts which are not coronavi- village on the border of Uttarakhand and Uttar Pradesh, a couple
ready for weeks but the three-week lockdown, the procurement of fertilizers and seeds Mehrana village in Panipat, rus hotspots from 20 April. got married in the presence of a few select family members because
restrictions meant nothing was proving to be a challenge. PAWAN SHARMA/MINT was left with little option but to The central home ministry- the police had not allowed the baraat. This contrast between the
could move. Harvesting of rabi harvest half the wheat crop in notified that the government common man and a “special” person is like a slap on the face of con-
(winter) crops such as wheat, fertilizers and seeds as those in search of jobs. his field—by hand. has allowed mandis, procure- stitutional dignity.
mustard, corn and pulses usu- shops were all shut. Even if The state government has “I would usually have hired ment agencies, farm opera- It’s not the only case. Questions were raised over the way Shivraj
ally begins in March. there was a minor repair increased the number of pro- a harvester machine but with tions, agri-machinery hiring Singh Chauhan took oath. When the debate on social distancing
“We somehow arranged a needed in a tractor, it could curement centres and is work- no clarity, I and my family centres, intra- and inter-state was already at its peak , many dignitaries and celebrities were
harvester for our fields. There not be done,” Saini said. ing out a strategy to ensure worked on the field ourselves. movement of farm imple- enjoying Kanika Kapoor’s songs in a party organized by former MP
is a huge shortage of farm Panipat, an industrial town that farmers do not need to This is our main source of ments to operate once the Akbar Ahmad Dumpy. What ensued is public knowledge.
labour in the area. People who in Haryana has a large number make multiple visits to the income and we could not delay lockdown restrictions are The biggest weakness of our system is this—the police, who were
used to work in factories, of handloom factories, which mandi to sell their produce. that. The lockdown has been eased. seen beating the helpless on streets during the lockdown, often
which are no longer function- employ many migrant work- However, farmers like Saini tough on us. We don’t know Whether all of this brings work as guards at the residences of such dignitaries. Such kind of
ing, are now coming to the ers. With the factories shut, are still unsure of what if any what we will do with the pro- any measure of certainty to the shameful acts should be dealt with strictly.
fields to help out. During the migrant workers who stayed special arrangements have duce, or if we will get a proper farms of Panipat remains to be Shashi Shekhar is editor-in-chief, Hindustan. His Twitter handle
lockdown, we weren’t getting back have headed to the farms been made. price,” Pandit said. seen. is @shekarkahin

Economy sputters back to life
as govt eases some restrictions
FROM PAGE 1
For e-commerce companies
that were allowed to resume
normal business operations
and later denied permission,
regulatory risk remained a key
factor even as the sector con-
tinued to grapple with logistics
issues, especially manpower
shortage.
In an email to employees,
Kalyan Krishnamurthy, chief
executive of Flipkart Group,
indicated that Flipkart will be
prepared to meet customer
needs as soon as the govern-
ment decides to resume full
operations and economic
activities.
“For the next two months,
all e-commerce players will be
MINT
E-commerce sector continues
to grapple with logistics issues.
figuring out the logistics puz-
zle, and e-commerce players
like ours will focus on expand-
ing hyper-local supplies. A lot
of large sellers are also adapt-
ing and now procuring essen-
tials, but smaller sellers are still
waiting for inventory to move,
before they stock up any fur-
ther,” said Srinivas Mothey,
senior vice-president, Paytm
Mall.
“Resumption of production
in totality at the moment looks
difficult for the automotive
industry, given the integrated
nature of the operations
between automakers and their
suppliers,’’ said Vinnie Mehta,
director general, Automotive
Component Manufacturers
Association of India. “Move-
ment of manpower across bor-
ders is crucial for resuming
operations. Besides that, com-
panies need to take into
account the poor consumer
sentiment as they commence
operations in phases,” said
Mehta.
As economy reboots, Centre raps states for violations
FROM PAGE 1
poor, has started in Pud-
ucherry…with masks on their
face but tools in their hands,” Lt
Governor Kiran Bedi said.
Odisha also allowed
MNREGS work and rural road
construction in green zones
and horticulture activity in
tribal belts.
Punjab chief minister Ama-
rinder Singh, however, ruled
out any curfew relaxation,
except as needed to ensure
#covid-19 free procurement of
wheat, till 3 May. Singh ordered
strict enforcement of curfew in
all districts.
The Centre, however, criti-
cized some states for violating
safety norms. “Violations to
lockdown measures reported,
posing a serious health hazard
to public,” the Union home
ministry said.
A security guard sprays a worker with disinfectant as work
resumes at a factory in Sonipat district on Monday.
“Incidents of violence on
frontline healthcare profes-
sionals was reported,” with
“complete violation of social
distancing norms and move-
TELEGRAM t.me/indiaepapers
ment of vehicles in urban
areas”, said the ministry. The
situation was “especially seri-
ous in Indore, Mumbai, Pune,
BLOOMBERG
Jaipur, Kolkata, Howrah, Med-
inipur East, 24 Parganas North,
Darjeeling, Kalimpong and Jal-
paiguri”, it said.
The Centre’s censure
pushed states such as Kerala to
withdraw some relaxations
such as opening of salons and
restaurants, permission to
allow two-wheelers to ply, and
some tech firms to resume
work with limited staff
strength.
Industry representatives,
however, said it may take more
time for ‘real’ construction
work to resume. “The indus-
trial belts in seven states and
Union territories, Tamil Nadu,
Maharashtra, Punjab, Guajarat,
Telangana, Karnataka, and
Delhi, remain shut and are
unlikely to open till 3 May.
These states have not relaxed
the curfew either. Despite all
efforts, the coronavirus may
spread in factories as factory
owners have little control over
workers after work hours, and
if that happens, the govern-
ment’s standard operating pro-
cedure says industry will be
penalised,” said K.E. Raghunat-
han, the immediate past presi-
dent of the All India Manufac-
turing Organization.
Construction companies
said they are facing multiple
challenges, from ensuring the
government’s orders are fol-
lowed, in terms of size or work-
force, to maintaining hygiene,
to following social distancing
norms. “We are assessing the
zones in which work can begin.
Pump priming activity has
begun in some of our sites. Our
machines and equipment were
out of action for around a
month. We first need to take
care of that,” said an executive
at a construction firm, request-
ing anonymity.
A union government official
said that construction work has
resumed in parts of India on a
small scale and it is expected
that more workers will join
work in the coming days.
Shreya Nandi contributed to
this story.
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Beijing calls New Delhi’s move to TWITTERVERSE

amend FDI norms discriminatory

Mehbooba Mufti
@MehboobaMufti
Kotak to tap Media in the country is
CPPIB, CDPQ, GIC China claims move not in line with India’s World Trade Organization and other multilateral commitments largely pliable.The ones
The proposed fund raise that have any credibility
will help Kotak Mahindra left are punished. It’s
Bank bolster its balance Elizabeth Roche changes when issues of national worse for J&K journal-
sheet, reduce promoter ists who report at the
elizabeth.r@livemint.com security are at stake, said a person
shareholding See Page 3
NEW DELHI familiar with the matter. India is cost of their lives.
not the only country to make such

Bollywood preps
for hygiene on sets
Helping crew overcome
the fear psychosis of
working in large teams
on sets is the biggest
concern. See Page 7
UK court rejects
Vijay Mallya plea
The verdict marks a win
for the CBI and the ED,
which had been seeking
Mallya’s extradition
since 2018. See Page 11
US seeks to send
team to China
The US wants to send a
team of experts to China
to investigate the virus,
President Donald Trump
has said. See Page 7
C
hina on Monday
86,000 accused India of dis-
Assamese
criminatory practices
people
stranded in and demanded that it
other states revise its foreign
get ₹2,000 direct investment (FDI) norms,
each
which were changed over the
bit.ly/2zgRUyn weekend to prevent the takeover
of Indian firms in a covid-19 pan-
demic ravaged economy.
India’s department of promo-
tion of industry and internal trade
(DPIIT) had on Saturday while
revising the country’s FDI regula-
tions had stated that “an entity of a
country, which shares a land bor-
der with India or where the benefi-
cial owner of an investment into
India is situated in or is a citizen of
any such country, can invest only
under the government route”.
India did not name China, but it
was obvious that the move was
aimed at preventing hostile take-
overs by Chinese companies of
Indian firms whose market values
have dipped because of covid-19
related uncertainties. The move
comes after similar changes in reg-
ulation by countries such as Aus-
tralia, Germany, and the Czech
Republic in recent months.
A spokesperson for the Chinese
embassy, Ji Rong, said the move is
not in line with India’s World
Trade Organization (WTO) and
modifications in policy, the person
said, pointing to several countries
in Europe that had changed their
laws or made new ones to cope
with similar situations.
Biswajit Dhar, a professor of
international trade at Jawaharlal
Nehru University in New Delhi,
also reiterated that India had not Pinarayi Vijayan
violated WTO rules. Dhar agreed @vijayanpinarayi
that at the G-20 trade ministers’ Kerala is making its way
meet last month countries had back into life. From
agreed to keep markets open. “But today on, some areas
one has to temper that with the will see relaxations.
reality on the ground,” Dhar said. We are not past the
The possibility of hostile takeovers danger and must
was very much real in the present remain cautious.
The barriers for investors from specific countries violate WTO’s principle of non-discrimination, says China. ALAMY economic environment, he said.
Till December, Chinese invest-
other multilateral commitments, realize a free, fair, non-discrimina- based on market principles. We ments in India had crossed $8 bil-
in the country’s first reaction since tory, transparent, predictable, and hope India would revise relevant lion, Ji said. “Chinese investment
New Delhi tweaked the rules. stable trade and investment envi- discriminatory practices, treat has driven the development of
“The barriers set by the Indian ronment, and to keep our markets investments from different coun- India’s industries, such as mobile
side for investors tries equally, and phones, household electrical
from specific INVESTMENT BARRIERS foster an open, fair appliances, infrastructure, and
countries violate and equitable automobile, creating a large num-
WTO’s principle BEIJING has BARRIERS set by INDIA’S move comes business environ- ber of jobs in India and promoting Sitaram Yechury
of non-discrimi- demanded that India Indian violates WTO’s after similar changes
revise its FDI norms, principle of fair- in regulation by
ment,” Ji said. mutual beneficial and win-win @SitaramYechury
nation and go which were changed trade, said the The Indian for- cooperation,” she said. “Facing the
Australia, Germany,
against the gen- over the weekend Chinese Embassy the Czech Republic eign ministry did economic downturn caused by Galloping
eral trend of liber- not react to the covid-19, countries should work unemployment means
alization and facil- comments by together to create a favourable greater starvation &
itation of trade and investment,” Ji open,” she said, referring to virtual China. investment environment to speed misery. Worse, 2 more
weeks of lockdown will
said. “More importantly, they do meetings of the group in the wake India’s tweaking FDI rules are up the resumption of production
not conform to the consensus of of the coronavirus outbreak. not in violation of WTO norms and operation of companies,” the compound this.
G20 leaders and trade ministers to “Companies make choices that allow countries to make such spokesperson said.

Cong panel asks govt Spike in pollution may make people more vulnerable to coronavirus
to transfer ₹7,500 to Neetu Chandra Sharma
neetu.s@livemint.com
deaths than many other non-
communicable diseases
hypertension, cardiovascular ratory system. As high levels of
diseases and cerebrovascular air pollution can cause damage
NEW DELHI (NCDs). In 2018, the third diseases, which can increase to the lungs, it makes one more
Jan Dhan accounts United Nations high-level the vulnerability to covid-19, susceptible to either getting

T
he Union government is meeting on NCDs recognized said Dr Arun Sharma, Profes- the infection or to getting
mulling steps to curb household and outdoor air sor-Director, Community complications from covid-19,”
pollution, which is pollution as the fifth risk factor Medicine, University College said Dr Nevin Kishore, head of
Anuja expected to spike after the for NCDs, alongside unhealthy of Medical Sciences (UCMS), bronchology, respiratory
anuja@livemint.com nationwide lockdown is lifted diets, tobacco-smoking, harm- University of Delhi. He said medicine, Max Healthcare.
NEW DELHI early next month. ful use of alcohol and physical any health condition that The World Economic
Air quality in India, home to inactivity. Now, a new study by weakens the Forum in a paper,

A
n internal panel of the some of the world’s most pol- Harvard’s T H Chan School of immunity raises As per the WHO’s titled the link
Congress party headed luted cities, improved sharply Public Health has also found a the risk of cov- 2018 global air between covid-19
by former prime minis- as the lockdown shut factories “large overlap” between cov- id-19 infection. pollution cities and air pollution,
ter Manmohan Singh on Mon- and kept vehicles off roads id-19 deaths and other diseases As per World database, said that people
day held its first meeting, fol- since 25 March. The ministries of health and environment are slated to meet next associated with long-term Health Organiza- living with poor
14 of the 15
lowing which the party has Experts are now worried week to discuss ways to contain pollution levels. BLOOMBERG exposure to fine particulate tion’s (WHO) air quality may be
urged Prime Minister Naren- that a return to high pollution matter, increasing vulnerabil- 2018 global air most polluted more susceptible
dra Modi-led government to levels could make people more this respite is short term. After down as it may have an adverse ity to the most severe out- pollution cities cities are in India to this disease.
make a cash transfer of ₹7,500 prone to catching the corona- the restrictions are lifted and impact on people, making comes of covid-19. It also database, 14 of the “The virus is
to bank accounts of all those virus infection which mani- human activities start, there them more prone to covid-19,” claimed that a rise of only 1 15 most polluted not only trans-
covered under Pradhan Mantri fests itself in the respiratory will be a sudden rise in air pol- he added. g/m3 in PM2.5 is associated cities are in India. Air pollution mitted by touch. A polluted
Jan Dhan Yojana, PM-Kisan Former prime minister tract. The risk is acute for lution,” said T. K. Joshi, mem- Joshi said the ministries of with a 15% increase in the cov- in the Indo-Gangetic Plain area will have more dust parti-
scheme and pension accounts, Manmohan Singh. HT those who suffer from health ber, Central Pollution Control health and environment are id-19 death rate, thereby (IGP) is worsened by geo- cles which can act as a piggy-
including those of elderly, per- risks such as diabetes, hyper- Board (CPCB) task force on air slated to meet next week to increasing the threat for a per- graphical and other factors back or carrier for the virus to
sons with disability and wid- committee, of which Rahul tension and cardiovascular pollution and health. discuss ways to contain pollu- son living for decades in a including the world’s highest sit on. A water droplet can set-
ows. Gandhi too is a part, is going to diseases. “We need to look at options tion levels after the lockdown highly-polluted area. population density and spread tle down, while a dust particle
The committee has also deliberate on similar issues par- “Currently, we have clean for keeping the air pollution is lifted on 4 May. Air pollution contributes to of industrial clusters. will remain suspended in air
decided to prepare a document ticularly those related to the air due to the lockdown but levels low even after the lock- Air pollution causes more health risks like diabetes, “Covid-19 affects the respi- for longer,” said Sharma.
focusing on three key things - economic fallout of the cov-
revival of micro, small and id-19 pandemic.
medium enterprises (MSMEs), “Cash transfer is required
issue of smooth crop procure- immediately to bring relief to
ment and resolving of the crores of people…the priority is
ongoing migrant crisis particu- about now. We believe ₹7500
larly of daily wage labourers. should be transferred…this will
The document is likely to be take care of immediate needs of
Government rejects calls for GST exemption on ventilators, PPEs
submitted to the union govern- the people that has arisen,” REUTERS
ment by Wednesday, senior Ramesh said. Gireesh Chandra Prasad & ducers, who pay taxes on raw healthcare services and more soaps, masks, gloves etc. from
Congress leader “I am confident Anuja material with unusable tax resources for state govern- the people suffering from pov-
and former union The committee that a compas- credits, said a government ments to deal with the corona- erty is incorrect. We will stand
minister Jairam will prepare a sionate and NEW DELHI official who asked not to be virus pandemic. It has by the #GSTFreeCorona
Ramesh, who is document on responsible gov- named. This will add to their demanded that “all big and demand,” former Congress

D
part of the Singh- revival of MSMEs, ernment can find espite mounting pres- cost of production, a burden small” equipment president Rahul
led committee, suitable funds to sure, the government that imported rival products related to treat- Exempting Gandhi posted in
said in an online
migrant crisis and provide for the
has rejected calls for will not have to bear. ment/relief from medical items Hindi on Twitter
press conference issue of crop poor and the vul- giving goods and services tax The union government has the pandemic on Monday.
procurement from GST will
on Monday. nerable,” he said (GST) exemption to ventilators come under political pressure should be GST- burden domestic Earlier this
The move is when asked if the and other medical equipment, from opposition parties, par- exempt. month, Maha-
significant as it union govern- which are key to the fight the
producers and
ticularly the Congress, which “In this diffi- rashtra deputy
comes against the backdrop of ment would have enough funds coronavirus pandemic, saying has been demanding that cult time of # cov- add to their cost chief minister Ajit
Congress president Sonia Gan- to launch the exercise on a large such a move will not benefit equipment and commodities Govt is under pressure from Oppn, which has been demanding id-19, we are con- of production Pawar had also
dhi and former party chief scale. consumers much, but could related to the treatment of that equipments related to covid be made GST-free. stantly demand- written to Union
Rahul Gandhi writing a series India began permitting a bring hardship to domestic covid-19 should be free from ing from the finance minister
of letters to Modi to draw the staggered lifting of lockdown producers. GST. In the past, federal indi- which had led to domestic pro- passed on to consumers in the government that all small and Nirmala Sitharaman seeking
government’s attention on Monday with migrant
towards issues of farmers, labourers being allowed to go
migrants and those faced by the back to their place of work
MSMEs. The 11-member party within a city.
Exempting ventilators,
masks, test kits and personal
protection gear from GST will
burden their domestic pro-
rect tax body, the GST Coun-
cil, had bowed to public and
political pressure to exempt
sanitary napkins from GST,
TELEGRAM t.me/indiaepapers
ducers having to bear the
unused input tax credits.
These eventually get added to
the cost of production and get
form of higher price, although
the GST rate on it will be zero.
The Congress has been rais-
ing the issue of better access to
big equipment related to the tax exemptions for some medi-
treatment of this epidemic cal equipment used in combat-
should be made GST-free. To ing covid-19.
collect GST on sanitizers, gireesh.p@livemint.com