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130

FRIDAY, MAY 29, 2020

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mint primer
QUICK EDIT
What will India’s Sanctions
recovery be like? won’t help
3 letters hold key The US no longer considers
Hong Kong autonomous from
China, a declaration that drew
BY KARAN BHASIN an angry response from the
People’s Republic on Thursday
There is growing concern about India’s slowing economy, which has
weakened further due to the covid-19 pandemic. Some experts worry and threatens to ratchet up ten-
recovery will be slow; others say normalization could be swift as curbs sions across the Pacific. The US
are lifted. Mint explains the different kinds of economic recovery. observation was triggered by
China’s move to impose a
A long road to recovery national security law in Hong
India has been experiencing a slowdown since Q2 FY19 and grew 4.7% in Kong, which has sparked vio-
Q3 FY20. The covid-19 pandemic is likely to further delay a recovery, as lent anti-mainland protests in
economic activity nearly came to a standstill in the last couple of months. the former British colony. Now
10 Washington might deprive
GDP growth at market prices
8.0 (year-on-year in %) Hong Kong of its special eco-
9
nomic status under a US law
8 that granted it trading privi-
leges and some tariff and visa
7
exemptions. The island prov-
6 ince could also lose access to
4.7 high-end US technologies.
5
It isn’t fully clear how far the
4 US would go in revoking Hong
Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q3 Kong’s special status. But the
FY15 FY16 FY17 FY18 FY19 FY20
Source: Statistics ministry threat is high, given the poor
PARAS JAIN/MINT state of US-China relations. It is
What are the kinds of Why do the recoveries clear that Beijing ought not to
1 economic recovery?
Economic recovery can take many
2 take different shapes?
The fundamental difference
have reneged on its promise of
“one country, two systems” that
forms, which is why it is often between the different kinds of assured Hong Kongers some
depicted using alphabetic recovery is the time it takes for democratic rights as part of a
notations. For example, a V-shaped economic activity to normalize. 1997 treaty with the UK. The
recovery, U-shaped recovery, The time taken is often a factor of British withdrawal was condi-
prolonged U-shaped recovery and multiple things such as the depth tional. Today, China seems to
W-shaped recovery. The letters of the economic crisis. This is
see itself as a regional hegemon.
generally denote the graph of because the deeper the recession,
growth rate, which resembles the the longer it takes a society to get It brooks little dissent, as seen
shape of the letter. A V-shaped back to normal. The other aspect in its repression of Hong Kong
recovery is usually a quick one has to do with the kind of policy residents. But will US sanctions
from a recession, while a U-shaped response as that determines how modify its behaviour? Unlikely.
recovery is one where the quickly economic growth will
economy stays at a low growth rate recover. For instance, an adequate
for a time. The recovery is W- fiscal or monetary package offered
shaped generally when economic by a government has in the past
activity recovers, but falls again
only to recover during the
been instrumental in swift
economic recoveries across
MINT METRIC
subsequent period. different countries. by Bibek Debroy

Looking for an individuality

3 What are some examples of
these kinds of recovery?
The US recession of 1953 is an example of a
To correlate with covid mortality?
V-shaped recovery as economic activity
A longer ring finger length
returned to normal swiftly. In the 1980s, its Gives you innate strength,
recovery took a W shape. Its recovery after
the 1973-75 recession and after the savings
Research finds this as source of vitality
and loans crisis were U-shaped. Most
nations experience either a U-shaped or V-
shaped recovery; a W- shaped recovery is
limited to weaker economies. QUOTE OF THE DAY
The 1991 economic crisis was
4 Hadn’t growth already
slowed down in India? 5
India witnessed a slowdown from
What kind of recovery
is expected for India?
It is difficult to predict the shape of
very different, we had a balance
the second quarter of 2018-19. economic recovery in India at this
of payment problem of a very
Tight money market conditions juncture as there are too many deep kind. We did not have
and the collapse of Infrastructure unknowns. What we do know is
Leasing and Financial Services that for China, the recovery was
sufficient forex reserves...Today
created stress in the non-bank swift and resembled a V shape, but we have resources and high
sector, hampering consumption as it was short-lived. If there is no
consumer loans suffered. This led second wave of covid-19, we should
forex reserves. So the current
to lower demand for investment expect swift normalization from circumstances are very
goods. The recession continued negative growth levels to the pre-
throughout 2019 and economic covid levels of 5% and a gradual
different from 1991.
activity picked up from November. recovery to 7%—the trend in the
Growth may turn negative in the last few years—but only by the
current quarter and economic second half of the next fiscal.
activity will take time to return to Karan Bhasin is a Delhi-based
pre-recession growth levels. policy researcher. BIMAL JALAN
FORMER RBI GOVERNOR
m MINT SHORT

Zuckerberg raps Twitter for fact-checking DJT

Prasid Kumar Banerjee claimed mail-in voting would lead to a
[email protected] “rigged election” in November, with a
NEW DELHI warning label that directed users to
fact-checking articles about mail-in

F
acebook chief executive officer voting.
(CEO) Mark Zuckerberg has criti- Twitter CEO Jack Dorsey was quick
cized rival platform Twitter for to respond. “Fact check: there is some-
fact-checking two tweets by US Presi- one ultimately accountable for our
dent Donald J. Trump. “I just believe actions as a company and that’s me.
strongly that Facebook shouldn’t be the Facebook CEO Mark Zuckerberg. GETTY Please leave our employees out of this.
arbiter of truth of everything that peo- We’ll continue to point out incorrect or
ple say online,” Zuckerberg said in an shouldn’t be in the position of doing disputed information about elections
interview with Fox News. “Private com- that,” he said. globally. And we will admit to and own
panies probably shouldn’t be, espe- The comment followed Twitter tag- any mistakes we make,” Dorsey
cially these platform companies, ging two of Trump’s tweets, which tweeted.
 FLIP SIDE
T
U RA L E
O
Y SV
N E W m
Mint Lite
Daily wrap of news and views, opinions and talking points to get you started on your day

T
hough the US continues to have the highest caseload, South America appears to be emerging as the new epicentre of
covid-19, according to WHO. Infections are rising the fastest in Brazil. India, whose rate of growth of infections is second
only to Brazil, has 3% of cases worldwide. Daily recoveries exceeded new cases in Russia for a third day, and Germany’s
infection rate dropped further. For the rest of the news, here’s Mint Lite.

FINALLY, SC STEPS UP FOR MIGRANTS

AFTER WEEKS of debates about charging migrants train fare, the
Supreme Court ordered the Centre to ensure free travel for workers
returning home either on buses or trains. States will have to share the
costs, it said. The court also set out detailed orders on provision of food
and shelter. “There had been instances where one state sends migrants
but at the border another State says we are not accepting the migrants.
We need a policy on this,” the bench told the Centre. Over 97 lakh
migrant workers have been sent home between 1 and 27 May, the Cen-
tre said, adding, 80% were from Uttar Pradesh and Bihar. Railways has
been running shramik trains from 1 May. Several migrants have died of
starvation or dehydration on the trains in temperatures that have
crossed 45 degrees Celsius. For the past two days, videos of a child try-
ing wake his dead mother in a railway station and of workers grabbing
food from vendors have been doing the rounds of social media.

END OF AUTONOMY FOR HK?

CHINA’S PARLIAMENT on Thursday approved a decision to
go forward with national security legislation for Hong Kong. It
will be enacted before September. This is likely to worsen
US-China relations, already at a low over Beijing’s claims in the
South China Sea, trade and the coronavirus pandemic. It has also
sent jitters through Asian and European markets, which fear that
curbs on Hong Kong’s freedom would jeopardize its role as a
global financial hub. China says the legislation aims to tackle
secession, subversion, terrorism and foreign interference in the
city. On Wednesday, US Secretary of State Mike Pompeo said
Hong Kong no longer qualified for special treatment under US
law. More than 1,300 US companies have offices in the city, pro-
viding about 100,000 jobs. Global markets were largely higher
on Thursday, despite the tension. Investors dismissed the unrest,
which drove the Hang Seng down 0.8% late in the trading day.

70% COVID CASES IN 15 STATES India's top 15 cities have

nearly 70 percent of all
EARLY THIS week, India became the ninth country to covid cases and deaths
have 150,000 covid-19 cases, and 14th to record over 15,257
Delhi 359
4,000 related deaths. However, the fatality rate has Lucknow
337
declined to 2.9%. Almost 70% of the cases continue to be 11,334 1,940 Kanpur
centred in 15 big cities (see chart), though the fear is the Ahmedabad Jaipur
virus will spread to rural India now that domestic travel 3,145
has begun. In the past week, confirmed cases in Chen- 1,421 Indore
nai and Pune rose to 14,254 and 6,445, respectively, the Surat 2,728
fastest increase among the top 15 cities by population. 34,018 474 Kolkata
Mumbai Nagpur
Lucknow, Kanpur and Bengaluru have relatively fewer
cases compared to other cities. Among the top 15 cities, 1,338
6,455 Hyderabad
the case fatality rates are the highest in Kolkata (8.4%), Pune Data as of 27 May, 7.30pm.
Ahmedabad (6.9%) and Surat (4.6%). The case fatality 14,254 Map shows top 15 cities
297 Chennai by population.
rates are the lowest in Lucknow (0.6%), Chennai (0.8%) Bengaluru Source: howindialives.com
and Hyderabad (1.7%). For more, read Plain Facts.

FRANCE, US JOBLESS CLAIMS RISE

THE NUMBER of jobless claims in France rose to a record high
in April despite the government pouring billions of euros into a
furlough programme to keep people in work. Full-time unem-
ployment rose 22.6% from March-end. The sectors most affected
include retail, tourism, hotels, transport, logistics and construc-
tion. The US labour department said Thursday that 2.1 million
more people filed unemployment claims last week, taking the
total unemployment figure since mid-March to over 40 million.
Worldwide, jobless rates are rising, reflecting the effect of cov-
id-19 lockdowns on livelihoods and economies. These figures,
however, do not show the fact that the careers of those who still
have jobs are also on hold as salaries have been slashed. What’s
more, existing employees are overworked in newly short-staffed
companies, which could lead to a rise in mental health issues.

LOCKDOWN DIET: BOILED RICE, SALT

IN BANDA district in the dry and arid Bundelkhand region of Uttar
Pradesh, 80% of families have at least one member who is a migrant
worker, sending money home from a job in a city. In the past two
months, this source of income has dried up as the country went into a
lockdown to combat the novel coronavirus, and many workers made a
perilous journey to the relative safety of their homes. Now, hunger is
their bigger worry. Most families in villages are consuming little more
than boiled rice and salt or wheat flatbread with chilli paste. Even pota-
toes are unaffordable for them. Entire families, including children are
skipping meals; families out of the food security scheme are on the
brink of starvation. In an agriculturally-impoverished region, their
only hope is the paltry wages from the rural jobs scheme, but even
those are hard to come by. For more details, read our ground report in
Long Story.

For more short takes on the news, and

quick updates to bring you up to speed
before you start your day, follow our
daily podcast Mint Lite Morning Shot Curated by Shalini Umachandran. Have something to
on htsmartcast.com share with us? Write to us at [email protected]
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PEANUTS by Charles M. Schulz

 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 14 NO. 130 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR) 16 PAGES

COVID-19 KEY THREAT TO

GLOBAL GROWTH: FSDC
The Financial Stability and Development Council
(FSDC), chaired by finance minister Nirmala
Sitharaman, on Thursday cautioned that the
pandemic poses a serious threat to the stability of
the global financial system as the impact of the
FRIDAY, MAY 29, 2020 crisis and the timing of recovery is uncertain. P6
LIVEMINT.COM

India Set For Deepest Recession Yet

Economists paint a grim picture of the Indian economy for FY21 ahead of the statistics department’s release of the March quarter GDP print today
m MINT GRAPHITI
Asit Ranjan Mishra
[email protected]
Sachs projected India’s econ-
omy to contract 5% in FY21. GROWTH BEFORE THE FALL ONE-DAY SPIKE
RBI may allow
DELHI SEES BIGGEST
NEW DELHI Although the government has
eased restrictions and allowed The government is set to release the gross domestic product numbers for the fiscal-fourth quarter on Friday. Given that the nationwide lockdown INDIA
relaxation for

P
rofessional forecast- businesses to restart operations, was enforced in late March, the figures may not paint that dismal a picture as there were a little over two months of normal economic activity.
ers veered towards a India’s more than two-month-
consensus that long lockdown and flight of
However, rating agencies, investment banks and multilateral agencies have sharply downgraded their full-year growth forecasts for the Indian
economy in the wake of the shutdown with projections ranging from about 2% to almost -6%, and most estimating a 5% contraction. 164,362 4,670
MSME loans
India’s economy will migrant workers from urban Total cases Deaths
face its worst reces- and industrial centres have crip- Present tense Future bleak (Year-on-year, in %) Gopika Gopakumar
sion in 40 years, contracting by pled economic activity. Gold- Quarterly GDP growth
(Year-on-year, in %)
Projections for FY21
6
70,005 89,687 [email protected]
at least 5% this fiscal, a day man Sachs has pointed out that 7.1 Earlier/Now Recovered Active cases MUMBAI
before the statistics depart- India’s stringent lockdown and Expansion forecast
IMF 5.8/1.9

T
ment releases the March quar- tepid fiscal support, small com- GLOBAL he Reserve Bank of India
6.2
ter GDP print, which will par- pared with even other emerging 4
(RBI) is in favour of scrap-
tially reflect the unfolding economies, may lead to GDP 5.6 5.7 5.6 ping the risk weight on
impact of the contracting by a
5.1
Barclays 2.5/0
5,731,837
Total cases
loans given by banks to small
pandemic on the massive 45% in and medium enterprises under
economy. the June quarter. 4.7 Moody's 2.5/0 the government’s ₹3 trillion
2
On Thursday,
S&P Global Rat-
EFFECT
S&P said a big
hit to growth will
S&P 1.8/-5
356,606 loan guarantee scheme, a top
official at RBI said. The Union
ings said the
VIRUS mean a large, 3.6 Deaths finance ministry had proposed
Indian economy permanent eco- 0 the scrapping as part of the
will contract 5% in FY21, nomic loss and deterioration in Fitch 0.8/-5
2,376,542 2,998,689 operational guidelines of the
2.5 2.5 Recovered Active cases
assuming that the ongoing out- balance sheets throughout the scheme following the
Source: Union health ministry, states
break in India will peak in the economy. “The risks around 2 2.1 announcement by finance
1.9 -2 Goldman
September quarter while Swiss the path of recovery will -0.4/-5 minister Nirmala Sitharaman.
bank UBS said India’s economy depend on three key factors. Sachs Currently, loans to medium,
could shrink 5.8% during the First, the speed with which the FULL COVERAGE INSIDE small and micro enterprises
current financial year amid covid-19 outbreak comes under 0.5 -4 UBS -0.4/-5.8 ˜ Plain Facts: Most states see (MSMEs) carry a risk weight of
weaker-than-expected domes- control. Faster flattening of the rebound in cases, cities 20%.
tic economic activity and the curve—in other words, reduc- continue to be hotspots P2 The move, which comes as
ongoing global recession. Ear- ing the number of new cases— HSBC Axis ICRA Crisil IDFC Care HDFC yet another nudge for lenders
Capital Ratings ˜ Long Story: Rural India’s lockdown
lier, S&P’s Indian arm Crisil, Q1 FY19 Q3 FY20 Q4 FY20 -6 Source: MOSPI, Mint research diet is boiled rice, salt as it suffers
Fitch Ratings and Goldman TURN TO PAGE 10 from undernutrition P8 TURN TO PAGE 10
GRAPHIC BY SARVESH KUMAR SHARMA/MINT

DON’T MISS
INVESTORS SEND NOTICE TO SEBI LIC TO INVEST IN RIL RIGHTS ISSUE AUTO DEALERS FEEL COVID PAIN SC RESPITE FOR MIGRANTS CUT FLIGHT TRAFFIC: K’TAKA INDIA IGNORES TRUMP OFFER
A clutch of high net worth investors of Franklin Insurer LIC will invest ₹2,500-3,000 crore Several auto dealers are staring at uncertainty The Supreme Court has directed central and The Karnataka government has said it has India said on Thursday it was engaged with
Templeton India has issued a legal notice to in Mukesh Ambani-owned Reliance Industries’ as a high level of unsold inventory of BS-VI state governments to provide free transport written to the Centre, asking it to reduce the China to resolve a tense border standoff,
Sebi saying an administrator must oversee the ongoing ₹53,125 crore rights issue, which had vehicles are leading to an increase in interest and adequate food to those seeking to go to number of flights from five high-risk states as it ignoring an offer of mediation made by US
management of the fund house. >P5 opened for subscription on 20 May. >P11 cost, with many unable to repay banks. >P7 their home states. >P14 was leading to a surge of cases in the state. >P5 President Donald Trump a day earlier. >P14

Regulators sharpen PM bats for solar cities Google may acquire UAE fund eyes Jio stake
focus on China FPIs Utpal Bhaskar
[email protected]
ernment statement said.
“He (PM) also emphasized
stake in Voda Idea Anirudh Laskar
[email protected]
been happening over the past
few days. Mubadala is keen to
NEW DELHI on an innovative model for MUMBAI buy a little more than 1% in Jio
Jayshree P. Upadhyay Investments from high-risk rooftop solar and desired that Romita Majumdar talks with private equity firms Platforms. The deal is likely to

P A
[email protected] jurisdictions attract greater rime Minister Narendra each state should have at least [email protected] for potential investments, the bu Dhabi-based sover- happen at a valuation of close
MUMBAI scrutiny from regulators and Modi on Wednesday one city (either a capital city or MUMBAI person said seeking anonymity. eign fund manager to ₹5 trillion, which is similar
those providing custodial ser- called for each state to any renowned tourist destina- A spokesperson for Vodafone Mubadala Investment to what has been estimated by

F G
oreign portfolio investors vices. have at least one ‘solar city’ tion)” that will be a “fully solar oogle Inc. is consider- Idea did not comment while Co. is in talks for a potential the deals agreed upon
(FPI) from China may face Sebi-registered foreign whose electricity needs would city through rooftop solar ing picking a stake of Google did not immediately investment of about $1 billion between Jio and Silver Lake
restrictions in India with portfolio firms invest in India be met entirely through roof- about 5% in Vodafone respond to emailed queries. in Reliance Industries Ltd’s and Vista Equity Partners,”
the government and markets through 56 jurisdictions. top solar power. TURN TO PAGE 10 Idea Ltd, said a person aware According to the average (RIL’s) digital assets subsidiary said one of the persons cited
regulator consid- Funds coming in The call came in the course of the development. price of the Vodafone Idea Jio Platforms Ltd, said two peo- above.
ering including India’s wariness of from jurisdictions of a review of the work of the New Delhi invites bid for
The telecom joint venture of stock in the past two weeks, a ple aware of the development. “Clearly, Jio’s platform is
mainland China Chinese funds has that are not com- ministries of power and new cross-border power grid >P10
Vodafone Group Plc and the “The talks between RIL and
and Hong Kong grown in the wake pliant with the and renewable energy, a gov- Aditya Birla Group is also in TURN TO PAGE 10 Mubadala Investment have TURN TO PAGE 10
in Securities and of the covid-19 regulations laid
Exchange Board down by the
pandemic and
of India’s (Sebi’s) Financial Action
list of high-risk the subsequent Task Force, or
jurisdictions, two border skirmishes FATF, are consid-
people with ered high-risk.
direct knowledge FATF is an
of the matter said. inter-governmental policy-
The Department of Eco- making body that monitors
nomic Affairs (DEA) has money laundering and terror
drafted a proposal to this effect financing.
and is currently working on its India’s wariness of Chinese
modalities, they said, request-
ing anonymity. TURN TO PAGE 10

Uninsured PPE kits

add to hospital bills
Disha Sanghvi nature of the virus and the
[email protected] severity of the outbreak has
MUMBAI forced hospitals to make it
mandatory for health workers

H
ospitalizations in the to wear protective gear, includ-
middle of the coronavi- ing body suits and face shields,
rus pandemic, even if a adding to the costs of patients,
patient has not contracted the as well as hospitals.
virus, may add thousands of What’s making matters com-
rupees in out-of-pocket plicated is that costs of PPE kits
expenses as insurers are unwill- are not standard. Given the
ing to cover the costs of personal varying and unregulated costs
protective gear as they fall in the of PPE kits, many insurers are
list of non-payable items. wary of hospitals overcharging
Patients could end up spend- them.
ing as much as a fourth of their Mahavir Chopra, a health
hospital bills on personal pro- insurance expert, said he has
tective equipment (PPE) dur- seen hospitals levying special
ing an extended hospitaliza- charges for care and hygiene to
tion, according to some manage covid-19 patients.
experts.
The highly contagious TURN TO PAGE 10
02 FRIDAY, 29 MAY 2020
NEW DELHI DEALS
PLAIN
FACTS

MOST STATES SEE REBOUND IN CASES

Big cities continue to be the largest hotspots, but Lucknow, Kanpur and Bengaluru have relatively fewer cases compared to other populous cities
m MINT COVID TRACKER Chart 1b Chart 2
Pooja Dantewadia & Chart 1a
India has the second highest rate of new cases Sharp spikes in Assam, Bihar
Sriharsha Devulapalli India's trajectory steeper than most peers Compound daily growth rate (in %) Seven-day rolling average. Day 0 for each state corresponds to
Seven-day rolling average. Day 0 for each country corresponds to the day
the 100th confirmed covid-19 case was recorded. Brazil 4.5 5.4 the day the 50th covid-19 active case was recorded.
NEW DELHI Maharashtra
407,897 1,619,999 India 4 5
6,400

I
ndia began its nationwide Mexico 4.6 5.3 3,200 Bihar
lockdown on 25 March, one Peru 3.8 3.9 1,600
of the most stringent in the US Russia 800 Karnataka
335,548 Brazil Pakistan 3.2 3.7
world, with a resolve to flat- 344,184 400
Indonesia 2.2 3.3 Andhra
ten the virus curve. Two 200
229,132 Pradesh
Italy Russia 2.7 4.3 100 Assam
months later, India prepares to 50
bring an end to the lockdown 138,534 Poland 1.1 2
100,000
even as coronavirus continues Iran 0.8 1.6
China 8,4087
to spread across the country. Sweden 1.4 1.6
50,000 India 0 10 20 30 40 50 60 68
Earlier this week, India US 1.1 1.4 Only states with more than 500 active cases as of 28 May 8am have been considered.
became the 9th country to have Canada 1.7 The vertical axis is a logarithmic axis.
1.4
150,000 coronavirus cases, and
Ecuador 1.3 1.7 Chart 3
the 14th country to record over
4,000 covid-related deaths. Romania 1 1 Top 15 cities have about 70% of all
10,000
The case tally took eight days UK 0.7 0.9 cases and deaths
to jump from 100,000 to 5,000 Portugal 0.8 1.1
150,000, making India the 4th Turkey 0.7 0.7 Delhi
fastest country to do so. How- The vertical axis 15,257
uses a logarithmic Belgium 0.4 0.4
ever, since the surge in the scale which makes
Active cases
Netherlands 0.4 0.4 over the past Ahmedabad
death count was not as big, the the scale appear 11,334
smaller than it Ireland 0.3 0.5 seven days
fatality rate has now declined 1,000
actually is. Germany
slightly to 2.9%, after hovering 0.3 0.5 Deaths over
around 3.2% for weeks. 500 Spain -0.3 0.3 the past
Though the US continues to seven days
Italy 0.3 0.4 Mumbai
have the highest caseload, France 0.2 0.3 34,018
South America appears to be Switzerland 0.1 0.3 Pune Chennai
emerging as a new epicentre of 6,455 14,254
100 China 0 0
the outbreak, according to the
World Health Organization. 10 20 30 40 50 60 70 80 90 100 110 120 129 Data for India as of 28 May 8am. Data for all countries as of 27 May, Only countries
Days since 100th case was recorded with more than 1,000 deaths have been considered Data as of 27 May 7.30pm Source: Our World in Data, MoHFW, howindialives.com
The infections are rising the
AHMED RAZA KHAN/MINT
fastest in Brazil, the country
with the second-highest case- Tamil Nadu, Delhi and Gujarat cases exclude deaths and fourth phase of the lockdown. rationing tests, the number of cases, the case fatality rates are Wednesday evening. pur and Bengaluru have rela-
load. The US, Brazil and Russia continue to be the worst-hit recoveries from the list of con- Bihar, which has seen a major cases could well reflect low highest in West Bengal (6.9%), Delhi with 15,257 confirmed tively fewer cases compared to
together have 44% of all the states with the highest number firmed cases. The seven-day influx of migrants testing rates (See Gujarat (6.2%), and Madhya cases, Chennai (14,254 cases), other cities at the moment.
cases worldwide. India, whose of cases. These states now rolling averages help smoothen moving to their chart 2). Pradesh (4.3%). Large cities Ahmedabad (11,334 cases), and Among the top 15 cities, the
India’s doubling
rate of growth of infections is account for 67% of confirmed volatility effects in daily report- hometowns from Maharashtra continue to be disproportion- Pune (6,445 cases) are the other case fatality rates are highest in
second only to Brazil among cases and 72% of fatalities. ing and are useful to gauge urban centres, time for total (1,897 deaths) ately affected by the coronavi- major hotspots so far. The cities Kolkata (8.4%), Ahmedabad
countries with more than 1,000 Among states with more trends over time. has seen a sharp confirmed cases leads in the num- rus, with Mumbai crossing of Mumbai, Delhi, Chennai, (6.9%), and Surat (4.6%). The
deaths, has 3% of cases world- than 1,000 active cases, the Several states with few cases spike over the has remained ber of covid-re- 34,000 cases and 1,000 deaths Ahmedabad, and Pune account case fatality rates are lowest in
wide (See charts 1a and 1b). doubling rates (based on the previously, such as Assam and past week. steady at 14 days lated deaths so far, this week. The top 15 cities in for 58% of confirmed cases and Lucknow (0.6%), Chennai
India’s doubling time for seven-day rolling averages) are Kerala, have seen a surge in Cases appear over the past followed by Guj- terms of population together 62% of deaths nationally (See (0.8%), and Hyderabad (1.7%).
total confirmed cases has the fastest for Maharashtra (15 cases over the past week. Other to be slowing in week arat (938). Madhya account for 67% of cases and chart 3). In the past week, con- [email protected]
remained steady at 14 days over days), Tamil Nadu (17 days), and states such as Karnataka, which the states of Pradesh (313), 70% of covid-related deaths firmed cases in Chennai and The Mint Covid Tracker runs
the past week. At its current West Bengal (18 days) and the had seen a dip earlier, have also Andhra Pradesh, Delhi (303), and nationally. Data for all cities Pune rose to 14,254 and 6,445 every week in the print edition.
pace, India could cross the slowest for Uttar Pradesh and seen a rebound, partly because Telangana, and Madhya Pra- West Bengal (289) are other have been aggregated from dis- respectively, the fastest For daily updates to the tracker,
200,000 mark in five days. Madhya Pradesh (32 days for of the opening up of travel desh. However, in the case of high-fatality states. Among the trict-wise case data compiled increase among the top 15 cities visit https://www.livemint.com/
Within India, Maharashtra, both) among such states. Active restrictions in the ongoing Telangana, which has been top 10 states with most active by howindialives.com as of by population. Lucknow, Kan- topic/mint-covid-tracker

m OOGLE TRENDS DASHBOARD Loss of smell a covid sign to watch out for
Whether it's to check the weather forecast, the cricket score, or the news, Google is the first port-of-call globally. Sneha Alexander for covid-19 and 7,178 were
And as more Indians get connected to the internet, data from the world's biggest search engine has emerged as a [email protected] found positive.
powerful tool to quantify what the country is searching for. Mint’s Google Trends Dashboard provides a weekly
MUMBAI The researchers found that
overview of the top trending topics of the current week across ten select countries. It also shows the top locations
65% of those who turned posi-
for the most searched topic in India and related topics linked to that topic.

L
oss of smell, or anosmia, tive had reported loss of smell
recently entered the and taste, but the figure was
COUNTRY MOST SEARCHED TERM REACH 2ND MOST SEARCHED TERM REACH World Health Organiza- only 20% for those who tested
tion’s list of possible symp- negative.
Australia George Floyd 200K SpaceX launch 100K toms of the coronavirus infec- The researchers used this to
Sara Winter tion. Prior to this, a study in the suggest that loss of smell and
Brazil 500K Borussia x Bayern 500K scientific journal Nature had taste could be used to identify
Germany Bundesliga 1M Bayern Dortmund 500K found that loss of smell and potential mild cases rather The loss of smell and taste could be used to identify potential
taste was a more than just relying mild cases rather than just relying on flu-like symptoms. AFP

India India Result 5M Locust 200K common cov- m SNAP FACT on flu-like symp-
id-19 symptom toms. Impact on who identified symptoms but disease. As of now, most coun-
Japan Disney 200K Rakuten Mobile 100K than believed smell receptors did not get tested could also be tries rely on established flu
and, thus, could help predict has been observed even in infected. This means 5.4% of symptoms for testing and iso-
Nigeria Children's Day 200K George Floyd 50K the infection. other respiratory viruses and the app responders were likely lation. A restrictive definition
Researcher Cristina Menni previous coronaviruses. to be infected as opposed to would mean non-detection of
Russia Border Guard Day 200K Last call - 2020 50K and others examined symp- The authors said it is impor- only 0.3% who actually tested mild and asymptomatic cases.
South Africa George Floyd 100K Menzi Ngubane 50K toms reported by users of a tant to look at combinations of positive. Looking for loss of smell as
mobile app in the US and the symptoms such as loss of smell The model has limitations as well could help detect more
UK SpaceX launch 1M Mary Wakefield 500K UK. Though 2.6 million users along with fatigue, cough and it is based on self-reported cases.
reported having symptoms, loss of appetite. Using such symptoms and may have over- Also read: Real-time tracking
US SpaceX launch 5M Amy Cooper 2M only around 824,000 identi- combinations reported by pos- predicted infections, but pro- of self-reported symptoms to
fied specific ones. Of these, itive cases on the app, they vides emerging insight on the predict potential covid-19
18,401 said they had got tested predicted that 17.4% of those varying symptoms of a new (go.nature.com/3c6rugB)
MOST SEARCHED TERM IN INDIA: India Result
SEARCH INTEREST BY STATE Search interest SEARCH INTEREST BY LOCATION
1
Babubarhi 100
2-5

NA
6-9
(Bihar)
Baheri
m NEWS IN NUMBERS CORRECTIONS AND
100 92 CLARIFICATIONS
(Bihar) GETTYIMAGES

Berthu
13% 6,000 Mint welcomes comments,
Delhi (Bihar) 92 What is it? The share of tourism in the What is it? The suggestions or complaints
3 Bihar economy of Cyprus. seating capacity about errors.
100 Pachrukhiya 90
(Bihar) Why is it important? The country is keen planned for The
Readers can alert the
to get tourists back as it expects to lose Oval cricket
Baht simar newsroom to any errors in the
(Bihar) 90 70% of the revenue from tourism this year ground in London paper by emailing us, with your
due to the coronavirus lockdown. It’s once the sport full name and address to
opening international travel from 19 resumes. [email protected].
RELATED SEARCH TERMS
countries, including Germany, Finland, Why is it
Israel, Greece and Norway, from 9 June. important? It’s It is our policy to promptly
Jharkhand 1 India result 2020 Tell me more: To reassure visitors, the less than a fourth of its normal capacity of respond to all complaints.
9 Readers dissatisfied with the
Daman government has promised to cover the 25,500 seats. This is one of the measures response or concerned about
and Diu 2 Sarkari result
holiday costs for those who might test that Surrey County Cricket Club, which Mint’s journalistic integrity may
6 positive for covid-19 after landing in the operates the Oval, is implementing ahead write directly to the editor by
3 India result 10th
country. The Mediterranean island has had of the reopening. sending an email to
Search interest as measured by Google is [email protected]
based on the relative interest in a topic 4 10th result 937 confirmed cases of covid-19, of which Tell me more: The last international
compared to all other topics for a 594 people have recovered. No new cases match that happened there was an England Mint’s journalistic Code of
particular location (country/state/city). 5 India result 2020 10th have been reported in the past few days. versus Australia Test in September 2019. Conduct that governs our
newsroom is available at
Source: Google Trends
www.livemint.com
All search data pertains to the 25-27 May period. Data accessed at noon on 28 May. SNEHA ALEXANDER/MINT Data and text compiled by Howindialives howindialives.com is a search engine for public data

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 FRIDAY, 29 MAY 2020
NEW DELHI 03

LOUNGE
Indian Institute of Corporate Affairs
(Ministry of Corporate Affairs)
Plot No. P-6,7,8, Sec-5, IMT Manesar
Distt. Gurgaon, Haryana
29.05.2020
IICA invites applications for engagement on
contractual basis from experienced candidates
for various faculty posts/positions including
Consultant - Library. ISSUE OUT
An Online interview is being conducted on 3rd, TOMORROW
10th, 17th & 24th June 2020. For details, please
visit please visit https:/iica.nic.in/Opportunities.
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THE KOLKATA
The positions is on rolling basis and will remain
open until a suitable candidate is shortlisted. Based
on the requirement, the positions may increase or
decrease.

DIARIES
Uprooted trees, broken windows, roofs blown
away—the cyclone left the city devastated.
Lounge speaks to six locals about their
experience of living through one of the worst
storms ever to hit the city

MOVIES: Shoojit LUXURY: Can ‘revenge BOOKS: The VANTAGE: Check

Sircar: ‘cinema will buying’ save the many lives of in to the Indian
not go anywhere’ Indian luxury market? emperor Akbar hotel of the future
04 FRIDAY, 29 MAY 2020
NEW DELHI

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

32,200.59 1.88 9,490.10 1.88 7,732.25 1.80 23,496.50 1.77 9,648.20 1.86 11,622.06 1.34 10,769.34 1.42
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

31,605.22 31,827.80 9,314.95 9,364.95 7,595.55 7,635.00 23,088.50 23,163.25 9,471.60 9,519.70 11,467.83 11,542.25 10,619.01 10,661.76
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

32,267.23 31,641.77 9,511.25 9,336.50 7,746.40 7,616.80 23,539.95 23,114.50 9,669.05 9,492.75 11,633.37 11,505.55 10,777.28 10,661.19

TVS’s better-than-expected Q4
mint

SHORT TAKES
With M&A dead, bankers
keep busy with stock sales
Wall Street bankers are a lot less busy these days,
what with the pandemic-induced drop-off in
performance reassures investors
mergers and acquisitions (M&As) and initial public
offerings. But there’s a gritty, less glamorous deal- R. Sree Ram sharp fall in volumes and negative ery in the rural sector. “While eco-
making realm that has held up, and it’s helping [email protected] operating leverage, analysts had nomic challenges are there, things
Tough quarter Total sales volume (lakh units) Ebitda margin (%)

banks offset some of that lost M&A and IPO reve- feared a sharper drop in operating should slowly and steadily pick up,” Adjusted for one-time 10

S
expenses, TVS 9.2
nue. A variety of firms, looking for liquidity in the hares of TVS Motor Co. Ltd profit margins. TVS management said on a call with
weak economy, are selling off big stakes they’ve gained 2.7% after it reported While all this is good, financial per-
analysts. “We feel we will see consoli- Motor's profit margin
7.6
long held in public corporations. The latest came Deutsche better-than-expected results formance can be expected to deterio- dation in the September quarter and had limited impact 8
Bank despite negative
Monday when French pharmaceutical giant Sanofi for the March quarter. Sales rate in Q1FY21. TVS Motor clocked are optimistic about the second half of 8
receives operating leverage.
launched a $13 billion sale of its 21% stake in Regen- nod to offer volumes dropped 30% from zero sales in the domestic market last
the fiscal year.” 6
eron Pharmaceuticals Inc. Regeneron agreed to the year-ago period, reflecting the month and exports were below par. Concurrently, the management 6.3
custodial
buy back about $5 billion of stock while the remain- services for impact of the lockdown and transition However, things are gradually expects exports to improve from next
silver
ing $7 billion was sold to public investors in the to BS-VI emission month, helped by eas- 4
largest public equity offering in the heath-care bit.ly/2M7ygrG norms. BUMPY RIDE AHEAD ing of restrictions in key
industry on record, according to data compiled by But thanks to a bet- markets and recovery in
Bloomberg. BLOOMBERG ter product mix and FALL in Q4 revenue TVS Motor’s HOWEVER, the crude oil prices from 2
higher realizations, the was confined to operating profit automaker’s financial
20%, owing to better margin stood at 7.6%, performance can be
record lows. The man- Source: Company;
fall in revenue was product mix and and was better than expected to agement expects to per- Q4FY20 profit margin
before the 0
confined to 20%. It higher realizations the Street’s estimates deteriorate in Q1FY21 form better than the Q1FY20 Q2FY20 Q3FY20 Q4FY20
So low donated ₹32 crore for industry in FY21.
exceptional items

The offshore yuan trades near record intraday SARVESH KUMAR SHARMA/MINT
covid-19, and provided Following the recent
low of 7.1965. for ₹22 crore worth of one-time dis- improving; its manufacturing plants dealer and retailer checks, Dolat Capi- ers, given their better affordability But the recovery will take time. Retail
CNH per USD
7.2 counts to dealers to clear BS-IV inven- resumed production after the relaxa- tal Market Pvt. Ltd analysts agreed that levels. “Covid-19 should also trigger a two-wheeler sales are only 25-30% of
tory. Adjusting for this, operating tion of lockdown measures. Many there will be a slow improvement in shift towards personal mobility, where normal levels, according to channel
7 earnings dropped 13.2% from the year- dealers across India and overseas have demand. Sales began picking up from a section of public transportation users checks by Dolat Capital Market. The
6.8
ago quarter, which was again better started operations. the second week of May, driven by the should switch to two-wheelers, espe- pace of recovery will determine the
6.73 7.18 than the Street’s estimates. With the weather office predicting absence of public transportation. Sep- cially in urban areas,” Jefferies India stock returns. At 20 times FY22 earn-
6.6 Operating profit margin stood at a normal monsoon and the agriculture arately, analysts said the need for pri- Pvt. Ltd said in a note. The commen- ings estimates, the stock is costlier
7.6%, down 1.2 percentage points from sector expecting a stable rabi crop sea- vate transportation in the light of cov- tary and the gradual improvement in than its peers—Bajaj Auto Ltd and
6.4
the December quarter. Given the son, the management expects a recov- id-19 will drive demand for two-wheel- demand should reassure investors. Hero Motocorp Ltd.
6.2

6
23 Aug 2010 28 May 2020
Source: Bloomberg

Trump vs China risks are

SATISH KUMAR/MINT

Covid-19 impact aside, reducing Why the Sun Pharma stock has been
mounting for markets
It’s only a matter of time before the Trump admin-
debt key for Aditya Birla Fashion absent from this year’s pharma rally
istration hits China over a range of grievances. The
question for CEOs, investors and economic policy
makers is how bad things will get. Investors have Pallavi Pengonda Clifford Alvares Nevertheless, in the past year, its falls at clinics. Sun has a large pres-
so far taken rising tensions in their stride, pushing [email protected] Not fashionable [email protected] formulation, Ilumya, clocked reve- ence in the chronic therapy seg-
global share prices to the highest levels since early ABFRL’s Q4FY20 revenue declined primarily due to weak nue of about $94 million, beating ment, and has been gaining overall

A A
March on optimism over unprecedented govern- ditya Birla Fashion and performance in the month of March. fter a long hiatus, the Nifty analysts’ estimates. This product is market share in the home market.
ment stimulus and an easing of coronavirus lock- Retail Ltd (ABFRL) is Standalone revenue growth Pharma index has outpaced expected to gather pace in FY21 with Nevertheless, it needs to strengthen
23
downs. But that doesn’t mean markets are flashing primarily grappling other sector indices, with sales of about $145 million, accord- its sales force to further drive reve-
the all-clear sign. China’s yuan tested a record low with two things. On one hand, 14.4 some pharma companies making ing to analysts. nue growth. In fact, dragging on its
in offshore trading on Wednesday, while Hong it has to deal with the adverse 11.2 12.3 high double-digit gains. But Sun That growth might otherwise decent Q4
Kong’s $4.9 trillion equity market is valued at its consequences of covid-19 and, 8.8 9.2 Pharmaceutical Industries Ltd’s still not suffice to coun- revenue growth was
7.9 While the stock
most depressed level relative to global shares since on the other, high debt. stock gained a mere 6% in 2020 ter sluggish growth in trades at about the impact of cost
the Asian financial crisis in 1998. BLOOMBERG The branded apparel com- against the Nifty Pharma’s nearly other products and 27.5 times FY20 increases. Selling and
pany’s net debt was ₹2,500 18% rise. cost escalations. Note, earnings, some administration
crore in March-end. ABFRL is -5 For one, while the specialty prod- its US revenues have expenses jumped about
headwinds may
Japan needs more virus looking to raise ₹1,000 crore Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ucts business is growing, it is yet to picked up sequentially
affect
4% while staff costs rose
through a rights issue. One see any marked pickup in revenue. by about 7.1% to $375 5%, crimping overall
stimulus, analysts say aim of this issue is to lower
FY19 FY20
Further, one of its large specialty million. One also needs performance margin growth. Q4
Source: Company, Motilal Oswal Financial Services Ltd
Prime Minister Shinzo Abe says Japan’s virus debt. “Debt build-up is a con- products, Absorica, is likely to face to watch research and Ebitda margin shrunk
response measures are the world’s biggest, but cern, though we believe some SATISH KUMAR/MINT
generic competition in the US in development costs, to 18.4% from 21.6% in
economists say the packages won’t be the last. The unwinding should happen in loss of ₹340 crore due to cov- quarter, given that the turn- December. Besides, the sales push which may rise on further develop- the December quarter.
cabinet approved measures Wednesday that dou- FY21,” said Kotak Institutional id-19. However, under a nor- over for that quarter could be required to drive revenues in spe- ment of its specialty product busi- “Ebitda missed our estimates by
ble Japan’s stimulus to about 40% of gross domes- Equities analysts in a report on malized scenario, revenue down 75-80%,” said brokerage cialty products faces hurdles due to ness. Research and development 9%, with margins showing no signs
tic product. Masaki Kuwahara at Nomura Securi- 28 May. Meanwhile, ABFRL’s growth would have been 13%, firm JM Financial Institutional covid-19. Also, Sun has to incur (R&D) expenses are likely to inch up of any operating leverage of
ties is among economists who say a third or even March quarter results, according to ABFRL. Securities Ltd in a report on heavy marketing and other related to 8-9%, against the present 6%. improved specialty performance,
fourth extra budget will be needed because the first announced on Wednesday Earnings before interest, Wednesday. expenses, which will tend to keep Some challenges in the domestic with SG&A spend and staff costs
two, as big as they are, only limit the economic after market hours, reflect the taxes, depreciation and amor- However, it is encouraging costs high. business are due to a paucity of foot- remaining elevated,” said analysts at
damage from coronavirus, but don’t boost demand hit on its finan- tization (Ebitda) that the company is evaluating Kotak Institutional Equities in a note
as needed for a strong revival. Policy makers are cials because of Investors will do stood at ₹156 several cost-cutting initiatives. to clients. Ebitda is earnings before
hoping to hold the games next year, but Japan will covid-19. well to follow the crore. Adjusting Investors will do well to follow Clawing back US sales ($ million)
(Left-hand scale)
Quarter-on-quarter
growth (%) interest, taxes, depreciation and
need to get back on its feet quickly to do so, accord- Standalone progress of the for I n d i a n the progress on this front from US revenue growth in amortization. Still, much of the
500 30
ing to economist Yoshimasa Maruyama at SMBC revenue declined firm’s cost-cutting Accounting Stan- the medium-term perspec- the fourth quarter
443
firm’s fortunes hinge on a meaning-
Nikko Securities. “The economy won’t be able to 5% year-on-year dard 116 changes, tive. It also helps that more picked up ful ramp-up in specialty products.
measures from sequentially due to a 400 375 20
survive unless they do a third extra budget in the to ₹1,817 crore. c o m p a r a b l e than 1,300 stores of ABFRL’s Covid-19, though, could keep the
summer,” he said. BLOOMBERG Even though the medium-term Ebitda shows a network of 3,041 stores are perk-up in some ramp-up slow and gradual. Costs are
January and Feb- perspective loss of ₹57 crore, operational now. On Thurs- speciality products 300
22.4
10 likely to be alleviated in the near
and steady revenues
ruary saw some said analysts. day, ABFRL’s shares rose by in the Taro business. future. Further, risk of a huge pen-
growth momen- Outlook for the 9.5% on NSE. The rights issue 200 7.1 0 alty on drug price inflation charges
Cash wall gets bigger tum, performance in March current quarter remains sub- and cost cutting measures are in the US is an overhang.
Clear demand emerges when 10-year treasury was hit due to the lockdown, dued, too. “Given the high being viewed positively. 100 -10 While the stock trades at a price-
yields rise above 0.7%. which in turn weighed on fixed-costs nature of ABFRL’s Despite the gains, the stock earnings multiple of about 27.5
2
US generic govt 10-year overall performance. business, we reckon that the has seen a sharp correction of 0 -20 times FY20 earnings, lower than
Source: Emkay Global Q4 Q4
For the March quarter, the June quarter financials would 58% from the 52-week highs Financial Services FY19 FY20 some of its peers, the headwinds may
1.6 company estimated revenue look far worse than the March seen in February. continue to affect performance.
1.92 SATISH KUMAR/MINT

1.2

0.8

0.68
0.4

0
31 Dec 2019 28 May 2020
India’s savers should brace for more pain in this round of interest rate cuts
Source: Bloomberg
Aparna Iyer banks to follow suit and cut demand and supply of non-essen- way into other financial products
Savers losers Weighted average term deposit rate (in %)
SATISH KUMAR/MINT [email protected] deposit rates. To be sure, the 7 tials. The very fact that individu- such as equity mutual funds and
weighted average term deposit Bank deposit rates als are opting for moratorium on shares. Value of equity funds have
have been declining 6.9
Asia money wall looks to
T
he covid-19 pandemic has rate declined by 53 basis points for the past several
loans shows that demand for fresh plummeted. Although bonds
prompted policymakers to between January and March. “In 6.8 loans will be minimal. Further, the have done well as an asset class,
keep lid on treasury yields rush to protect borrowers the banking space, we see that the
quarters and are
expected to drop increase in currency with the investors have withdrawn from
6.7
There’s a wall of money out of Asia capping Trea- from its impact. Inadvertently, as PSBs, while transmitting the repo further due to 6.71 public (16.8% year-on-year as of 8 debt funds owing to troubles with
sury yields. It’s about to get bigger. For 10-year US always, the savings account hold- rate cut, have tried to minimise surplus liquidity and 6.6 May) shows Indians now would the structure of some schemes.
debt, the 0.70% to 0.75% yield range has acted as a ers in India will be collateral dam- the cut in term deposit rates to successive policy
6.5
want to keep a stash of cash for Another avenue where savings
ceiling in the past six weeks. Traders point to moti- age. One sign of this is the falling have minimal impact on the rate cuts. exigencies. go are the government’s small
vated buyers out of Asia, with bonds often gaining interest rates on deposits of the depositor. Meanwhile, for private 6.4 In fact, given that bank deposits savings schemes. There, too,
in early trade when yields are in this range, an indi- country’s largest bank, State Bank banks, the deposit rate cuts have 6.38 are considered most liquid and interest rates have been chopped.
6.3
cation of dip buyers attracted to the levels. There’s of India (SBI). been more aggressive than the Source: CMIE May 2018 Mar 2020 safe, the flow of money into them For the FY21, the rates on various
a school of thought developing that buying of dol- The unprecedented surplus MCLR cuts,” economists at SBI has only grown despite the fall in small savings schemes have been
PARAS JAIN/MINT
lar products from Asia is about to get bigger, mostly liquidity rush to safety of deposits wrote in a note. rates. Between 1 April to 8 May, cut between 70-140 basis points.
due to how economies are reopening across the and the policy rate cuts so far has The most sticky savings deposit the headline inflation. In other save less? The odds are low. One, banks’ time deposits increased by For instance, public provident
region. Traders at large funds have probably been meant that SBI has reduced its rate, too, is now vulnerable. This words, if you leave money in your despite a more relaxed lockdown, ₹4.41 trillion as against a smaller fund interest rate was cut from
less willing to be aggressive in purchasing some less deposit rates twice in just a rate was deregulated in 2011, and savings bank account, it is losing spending is far from pre-pan- increase of ₹1.46 trillion in the 7.9% for FY20 to 7.1% for FY21. It is
liquid bonds, often known as spread products for month. Its one-year deposit rate is banks were allowed to reduce it. value everyday due to inflation. demic levels. Urban centres, corresponding period of the pre- clear that Indians may end up sav-
being quoted as a spread over Treasuries, while at its lowest in 17 years. SBI’s savings deposit rate is down Does this mean that Indians will which are big contributors to con- vious fiscal year. Besides deposits, ing more but earning less on their
working from home. BLOOMBERG It is natural for most other to 2.75% now, which is lower than now start borrowing more and sumption, are yet to see both household savings also find their savings in the current fiscal year.

Mark to Market writers do not have positions in the companies they have discussed here
 CORPORATE FRIDAY, 29 MAY 2020
NEW DELHI 05
VIRUS EFFECT
Dell mulls
30 Indian groups working to Karnataka calls for
tie-ups for less air traffic from 5
tech-led
education
develop vaccine for covid covid-afflicted states
Ayushman Baruah Sharan Poovanna
[email protected] [email protected]
BENGALURU Globally, 10 vaccine candidates have entered the human trial stage, according to the WHO BENGALURU

A T
fter partnering with he Karnataka govern-
NITI Aayog to launch Neetu Chandra Sharma ment on Thursday said it
Mumbai’s first Atal [email protected] has asked the Centre to
Tinkering Lab in March, Dell NEW DELHI reduce the number of flights
Technologies is looking to col- from five states which were

A
laborate with government and bout 20 groups in India contributing to rising coronavi-
private institutions to build a are making quick progress rus infections in the state.
technology-led education sys- in their efforts to develop a “The state government has
tem geared to develop skills vaccine for covid-19, the requested the civil aviation
for the future workforce. government’s principal ministry to reduce the number
“Our mission is to techno- scientific adviser, Dr K. Vijayraghavan of flights, emanating from
logically enable human said on Thursday. These groups are Maharashtra, Tamil Nadu, Guj-
progress in every aspect of among the 30 in India who are aggres- arat, Madhya Pradesh and Around 1,140 people who came
life…education is one of the sively trying to develop a vaccine. Rajasthan to Karnataka, in view back from Maharashtra have
areas which will have maxi- “There are about 30 groups in India, of the high number of covid-19 tested positive for virus. PTI
mum impact by bringing in big industry to individual academics, cases prevalent there,” a state-
technology and so, it is a natu- who are trying to develop a vaccine. ment by law and parliamentary seen a rise in cases ever since
ral focus area for us in India,” Some companies are in late pre-clinical affairs minister J.C. Madhus- restrictions on interstate move-
Alok Ohrie, president and stage. Vaccine development usually wamy said. ment of people by trains and
managing director, Dell Tech- takes 10-15 years. However, consider- The statement added that road were lifted by the centre.
nologies India said. ing the seriousness of the pandemic, we this was being done with the At least 1,140 people who
There is a need for much need it within one year,” said Vijayra- “sacred intention that there returned to Karnataka from
richer content and curriculum ghavan, who is also co-chair of the gov- may not be adequate quaran- Maharashtra have tested posi-
to prepare the students for the ernment’s covid-19 task force on scien- tine facilities” if too many peo- tive, according to government
future, he added. “Inclusion of tific development. ple turn up at the same time. data. Gujarat accounts for 58
new-age technologies like “The world is investing in more than The restriction on people’s cases, Delhi and Tamil Nadu 54
artificial intelligence (AI), 100 vaccines as covid-19 is a new dis- movement by each, Rajasthan
machine learning (ML), inter- ease and we have to get a vaccine as road will continue The state has 39 and Madhya
net of things (IoT), robotics, soon as possible. The entire process A passenger wearing protective gear and face mask waits for transport at the Bagdogra airport on Thursday. AFP for those coming requested the Pradesh two.
and automation will be very will cost $2-3 billion,” Vijayraghavan from Maharash- govt to reduce Though the num-
helpful in building the right said. Even after a vaccine is available, reported successful results in human in the fundamental properties of the “In the next few months, covid-19 tra, Gujarat and flights emanating ber of cases from
skills for the future.” Ohrie was access will remain a challenge, he said. trials. virus. tests would be available, both nation- Tamil Nadu. Delhi is high, the
from states like
speaking at a webinar, ‘Trans- The principal scientific adviser’s The WHO’s list of firms from India On drug discovery, the government ally and internationally, that could be Madhuswamy state government
forming Tomorrow – Skilling statement came as the number of coro- involved in developing a vaccine for the said that it is adopting three done on an individual. RT-PCR tests for said that those Maharashtra, TN, h a s l e f t t h e
Today’s Youth with Technol- navirus cases in India crossed 160,000, highly infectious disease includes the approaches. The first approach is virus genetic material. Now, a second coming from Gujarat, MP national capital
ogy for Workforce 2030’. among the 10 highest in the world. Serum Institute of India, Zydus Cadila, repurposing existing drugs. The sec- test is in the offing to check for virus these states were out of the list as
The Atal Tinkering Lab The fight against coronavirus particles. There are variations of not only testing this sector has
under the Atal Innovation Mis- will be won through vaccine and RACING AGAINST TIME RT-PCR, The Indian Institute of positive, and adding to the VVIP travellers, Union minis-
sion aims to foster an innova- drugs, said Dr V.K. Paul, member, Technology Delhi developed one,” pressure on institutional quar- ters and stranded citizens
tion and entrepreneurial NITI Aayog. THE entire process EVEN when a MODERNA of the US SERUM Institute of Vijayraghavan said. antine centres as well as testing returning to India from other
mindset in students from a Ten vaccine candidates from of developing vaccine finally
vaccines globally will becomes avaiable,
and China’s Cansino
Biologics have
India, Zydus Cadila
and Bharat Biotech
Till the time a vaccine is made infrastructure. The restrictions countries.
young age. across the world have entered the cost $2-3 billion, access will remain a reported successful are among the Indian available, so far, total 67,691 people will be in place for eight to 10 Karnataka confirmed 115
Dell’s focus on technology- human trial stage and 115 are in pre- according to experts huge challenge results in human trials groups at work have been cured in India. In the days. covid-19 cases on Thursday, of
led education in India gains clinical evaluation stage or pre-hu- past 24 hours, 3,266 patients were The state has seen a surge in which 97 cases are people who
increased significance given man trial stage, according to the found cured. This takes the coun- covid-19 positive cases even as entered from other states (and
that a large number of stu- World Health Organization’s (WHO’s) Indian Immunologicals Limited, and ond is testing extracts from herbal and try’s total recovery rate to 42.75%. it prepares to relax more lock- countries) and only 18 are from
dents have moved to online draft landscape of covid-19 candidate Bharat Biotech. medicinal plants, while the third is Meanwhile, the government said down restrictions post 31 May. local sources, S. Suresh Kumar,
modes of learning from physi- vaccines on Thursday. As of now, US Vijayraghavan said designing drugs using a variety of approaches for new changes in the covid-19 discharge pol- Karnataka, one of the few big Karnataka’s primary and sec-
cal classrooms due to the cov- biotechnology company Moderna Inc to combat covid-19 is challenging, drug discovery, including a hackathon icy shortening hospital stays, have states that managed to keep the ondary education minister
id-induced lockdown. and China’s Cansino Biologics Inc have though so far there has been no change for computational drug discovery. improved the recovery rate. health crisis under control, has said.

Franklin investors send legal notice to Sebi

Jayshree P Upadhyay for Franklin Templeton in a
[email protected] response to Mint said, “We
MUMBAI deny all allegations and wish to
clarify that there has been no

A
clutch of high net illegality, wrongdoing or mis-
worth investors of representation. We continue to
Franklin Templeton follow due process, both in
India on Thursday sent a legal making investment decisions
notice to the market regulator and in the winding up of these
asking it to appoint an adminis- schemes. We have acted in the
trator to oversee the manage- best interest of our investors
ment of the fund house and and in accordance to all regula-
evolve a mechanism for timely tions.”
payouts to unit holders. The investors alleged Frank-
They also wanted the Securi- lin Templeton had violated all
ties and Exchange Board of The investors have asked Sebi to appoint an administrator to regulations and safeguards and
India (Sebi) to direct Franklin oversee the management of the fund house. MINT thereby defrauded investors of
Templeton to withdraw the their funds. According to them,
winding up process and under- yam Jain. Last week, these These schemes have combined the asset manager’s violations
take it only if unit holders vote investors had sent a notice to assets under management of included investment in securi-
in favour of the exercise. Franklin Templeton demand- ₹25,856 crore. ties contrary to stated invest-
They have also demanded ing a refund of their entire These investors in the legal ment objectives.
that investors be paid up to ₹2 investment, and withdrawal of notices alleged that the reasons The investors raised a com-
lakh each in the interim, notice announcing the winding for winding up were not the plaint against Sebi norms list-
according to the legal notice, a up of six debt schemes. ones mentioned by Franklin ing out circumstances under
copy of which has been On 23 April, Franklin Tem- Templeton. They said the real which mutual fund schemes
reviewed by Mint. pleton announced that it is reason was violations of Sebi can be wound up. They said
The notice has been sent by winding down its six debt norms. that regulation does not pro-
Franklin Templeton unit hold- schemes due to severe illiquid- While an email sent to Sebi vide the mechanism through
ers Kaj Associates LLP, Ultra ity and redemption pressures, did not result in a response which an open-ended scheme
Walls and Floors LLP and Sat- leaving 300,000 in the lurch. immediately, a spokesperson can be wound up.

Discoms with dues barred from covid loans

Dhirendra Tripathi iar with the development. irrevocable state government
[email protected] The discoms will have to guarantee before the first dis-
NEW DELHI show that the undertakings bursement. The guarantee
given at the time of tranche-I shall cover the loan amount

P
ower distribution com- loan are being implemented, if along with interest and any
panies (discoms), hoping not already done so, the offi- other charges towards the
to benefit from the cial said. loan. The tenor of the loan will
₹90,000 crore loans that The loans be up to 10 years
finance minister Nirmala under the scheme The primary including a mor-
Sitharaman said Power will be co-funded condition for a atorium not
Finance Corporation (PFC) by PFC and REC loan from PFC exceeding 3
and Rural Electrification Cor- in equal propor- and REC is that years. The mora-
poration (REC) will provide tion. The
Loans under the ₹90,000
applicant discoms torium shall only
them to help them combat the scheme will be disbursed in amounts under be on the pay-
covid-19-induced stress, are in two tranches. MINT the two tranches are not existing ment of princi-
for a surprise, according to a will be equal. borrowers pal.
copy of the document seen by by PFC board on 16 May, the In another Interest shall
Mint. two power sector-focused len- twist, aimed at be serviced regu-
The power sector lenders ders will give funds in two ensuring correct end-use of larly on monthly basis, as per
have set stiff conditions to lend tranches, each carrying a set of the funds, PFC and REC will the PFC guidelines, also appli-
money under the scheme. One riders. “The primary condition release the amounts directly to cable to REC loans. There will
of them is that a discom should before extending the loan will the generation or transmission also be a 1% pre-payment pen-
not be owing money to either be that the borrower should company. alty if the borrower does so by
at the time of availing the loan. not have any overdues to PFC The borrower will have to taking fresh loans from a bank
As per the scheme, approved or REC,” said an official famil- submit an unconditional and or a financial institution.
06 FRIDAY, 29 MAY 2020
NEW DELHI CORPORATE
VIRUS EFFECT
‘Virus crisis a serious threat Govt explores ways
to open up economy,
to global financial system’ contain virus spread
Elizabeth Roche &
Gireesh Chandra Prasad
The ultimate impact of the pandemic and timing of recovery are uncertain, cautions FSDC
NEW DELHI

Asit Ranjan Mishra

I
Almost 11% of the shipments ndia on Thursday explored a
comprising non-essential items [email protected] strategy for containing the
were stuck in transit at hubs. NEW DELHI spread of coronavirus cases
and the possible restoration of
Medicine, more economic activity with

T
he Financial Stability and minimal risk of spreading
Development Council infection before the fourth
grocery most (FSDC) chaired by finance
minister Nirmala Sithara-
phase of the lockdown ends on
Sunday.
shipped man on Thursday cautioned
that the pandemic poses a serious
A meeting between cabinet
secretary Rajiv Gauba and chief
threat to the stability of the global secretaries of various states
items in financial system as the ultimate impact
of the crisis and the timing of recovery
took stock of the situation in 13
cities, considered the worst Cabinet secretary Rajiv Gauba
April: report is uncertain at this point of time.
“While, decisive monetary and fiscal
affected by the coronavirus and chief secretaries of states
outbreak with about 70% of the took stock of the situation. HT
policy actions aimed at containing the positive cases in the country,
fallout from the pandemic have stabi- according to a government meeting includes working on
Nandita Mathur lized investor sentiment in the short- statement issued after the high-risk factors, indices such
[email protected] run, there is a need to keep a continu- meeting. as confirmation rate, fatality
NEW DELHI ous vigil by government and all regula- Measures taken by the rate, doubling rate, and tests
tors on the financial conditions that municipal corporations for the per million people, according

M
edicines and food could expose financial vulnerabilities management of covid-19 cases to the government statement.
items were the most in the medium and long term. The were reviewed in the meeting, “The central government
sold products across efforts of the government and regula- the government said. has already issued guidelines
India in April, with Mumbai, tors are focused on avoiding a pro- The development comes at a on management of covid-19 in
Delhi, and Bengaluru topping longed period of dislocation in finan- time when the central and state urban settlements. The Centre
the chart in terms of pickup cial markets,” the finance ministry said Finance minister Nirmala Sitharaman chairs the FSDC meeting along with MoS Anurag Thakur in New Delhi on Thursday. PTI authorities are has stressed that
and delivery, according to the in a statement after the meeting. under pressure to Measures taken containment
State of logistics in lockdown Covid-19 has thrown the global month said while financial system resil- The FSDC meeting also reviewed the afloat, which would require developing find solutions for by the civic zones are to be
report by Shiprocket, a tech- economy into its worst recession since ience, fiscal support, regulatory flexi- current global and domestic macro- the tools to fairly and efficiently do so. rising job losses bodies for the geographically
enabled logistics startup. the Great Depression in the 1930s, and bility and liquidity provision to date economic situation, financial stability “As the crisis develops from a ‘liquid- and predictions of management of defined, on the
The government had per- India is no exception. Domestic eco- have helped ensure that the financial and vulnerabilities issues, major issues ity phase’ into a ’solvency phase’, it will a sharp contrac- basis of factors
covid-19 cases
mitted the shipment of essen- nomic growth is expected to contract system is supportive of economic likely to be faced by banks and other be necessary for governments to con- tion to the econ- such as mapping
tial goods during the nation- for the first time in forty years in FY21. recovery, a more protracted slowdown financial institutions as also regulatory sider a range of policy tools, including omy this fiscal. were reviewed in of cases and con-
wide lockdown. Shiprocket Crisil, Goldman Sachs and Fitch Rat- may present new risks to the financial and policy responses, solvency of non- efficient bankruptcy and restructuring India has the meeting tacts and their
said medicines accounted for ings have projected the Indian econ- system. “Whereas most advanced bank financial institutions, housing systems, government guarantees and entered the list of geographical dis-
80% and groceries contrib- omy to contract 5% during the cur- other support for private invest- 10 countries worst persion. This
uted 16% to overall shipments rent financial year. The Centre has FSDC TAKES STOCK OF THE SITUATION ments, programmes for sector-spe- affected by the coronavirus would help establish a well-de-
during the month. announced a ₹20.9 trillion finan- cific government equity injections, outbreak with 164,362 cases of fined perimeter and enforce
The survey, which involved cial package including reform FINANCE ministry BUT there is need to THE meeting looked IT also reviewed and establishing asset manage- infection and 4,670 deaths so the strict protocol of lock-
1,931 sellers, revealed that measures to help mitigate the eco- said policy actions to keep vigil on
contain fallout have conditions likely to
at the current global
economic situation,
major issues likely
to be faced by
ment companies,” the report said. far. down,” the government said.
Delhi, Mumbai, and Benga- nomic fallout of the pandemic. stabilized investor expose financial financial stability and banks, solvency of The meeting was attended The 13 cities worst affected “Municipal corporations can
luru, were followed by Hyder- The FSDC discussed the initia- sentiment vulnerabilities vulnerability issues NBFIs and HFCs through video conference by the by the pandemic are Mumbai, decide if residential colonies,
abad and Gurugram in terms tives taken by the government and Reserve Bank of India governor Chennai, Delhi, Ahmedabad, mohallas, municipal wards or
of maximum pickups and the regulators to help revive the Shaktikanta Das, Securities and Thane, Pune, Hyderabad, police station areas, municipal
deliveries. The report noted economy. “Government and the RBI economies are addressing emerging finance companies and micro-finance Exchange Board of India chairperson Kolkata, Howrah, Indore, Jai- zones, and towns can be desig-
that 11% of the shipments com- have announced various fiscal and recessions with large fiscal packages, institutions. “Besides, market volatility, Ajay Tyagi, Insurance Regulatory and pur, Jodhpur, Chengalpattu, nated as containment zones, as
prising non-essential items monetary measures to pre-emptively many emerging-market and develop- domestic resource mobilisation and Development Authority of India Sub- and Thiruvallur. Many of the required. The cities were
were stuck in transit at hubs. limit the economic damage and would ing economies lack the fiscal space to capital flows issues were also discussed hash Chandra Khuntia, Insolvency and cities such as Delhi, Mumbai, advised that the area should be
The findings highlight how continue to address the liquidity and adequately respond. Moreover, since by the Council,” the ministry said. Bankruptcy Board of India chairperson Chennai, Ahmedabad, Pune appropriately defined by the
the supply chain was disrupted capital requirements of the financial the beginning of the crisis, investors The WEF report said while in the M.S. Sahoo, Pension Fund Regulatory and Hyderabad are major eco- district administration and
despite a rise in demand for institutions,” the statement said. have fled from emerging markets, with short term, the focus should be on and Development Authority chairper- nomic hubs as well and crucial local urban body with technical
e-commerce deliveries during In a report titled “Impact of covid-19 portfolio outflows exceeding those liquidity support, ultimately, govern- son Supratim Bandyopadhyay, among to the revival of the Indian inputs from the local level,” it
the lockdown and order ful- on the global financial system”, the during the GFC and other periods of ments might need to take equity in others, and secretaries and senior offi- economy. said.
filment remained an industry- World Economic Forum (WEF) last major stress,” it added. some firms in order to keep them cials in the ministry of finance as well. The strategy discussed at the [email protected]
wide challenge. Delivery of
non-essential products also
suffered because many con-
sumers cancelled their orders
because of the coronavirus
threat, further impacting
demand, said Saahil Goel,
chief executive officer and
Kochi is waking up to the trouble with winning solo against the coronavirus
co-founder of Shiprocket.
The logistics sector has Ajai Sreevatsan & ing that it has only a dozen India. ies,” said K.J. Sohan, a former unique strategies. In the US,
played a key role in ensuring Nidheesh M.K. active covid-19 cases (the low- “This lockdown is not only mayor of Kochi. “Things need for instance, a group of seven
minimal disruption of supply est caseload among major impacting supply chains, but to improve elsewhere.” heavily urbanized states on the
chains for businesses offering ERNAKULAM/KOCHI Indian cities). also demand,” said Radhicka The port is, in fact, a central eastern seaboard, including
essential goods, since the lock- Despite those obvious Kapoor, an economist with the cog in Kochi’s local economy. New York, have decided to

M
down began on 25 March, but K Hamsa’s plywood advantages, Hamsa’s business Indian Council for Research And, much of the produce coordinate better on opening
pharmacies were badly hit. factory on the eastern is at a standstill. The raw mate- on International Economic from the state’s plantation up their economies. However,
“The business has seen a suburbs of Kerala’s rials (rubber trees) need to be Relations. “Cities like Mumbai economy, from spices to tea, is India still has no such regional
30% hit because of the early Ernakulam is open for busi- procured with ready-cash, and Delhi have a larger section exported via plans to step out
lockdown,” said Puru Dhawan, ness, but he spends a bulk of which Hamsa says he doesn’t of the population who are rela- Kochi. “Export Even in a state like of the lockdown.
a Delhi-based pharmacy his time taking phone calls have since existing orders are tively more affluent. We know demand has Kerala where very To tide
owner. Another pharmacy from labour not moving. retail activity is not going to fallen drastically. few items are through the
owner, requesting anonymity, contractors, m I N D I A “The orders pick up, malls are not going to Despite our resil- produced locally, times, Hamsa has
said 70% of his business was instead of actu- UNLOCKING were to be sent Local demand within Kerala is heavily reliant on two sources, open up. As long as metros ience in tackling started accepting
inter-linkage of
impacted by the lockdown, as ally running to big cities remittances and tourism, but both sectors have been hit hard. AP remain shut, we won’t be able the disease, nor- small local orders,
his team was not able to sched- the operations. “I really don’t like Mumbai and Chennai, to capture whatever little mal economic businesses are which he would
ule pickups. need more workers. Shutting which are witnessing rising realized that with the covid-19 bavoor, one of Asia’s biggest demand there is.” activity may be hard to ignore not have taken
“Now that the government down was so easy compared to infections and are not receiv- outbreak, winning alone is no plywood manufacturing hubs, Local demand, within Ker- affected at least otherwise, just to
has given the green light for this (opening up),” he said. ing orders. Not a single load win at all. Even in a state like and a transport nerve centre, ala, is heavily reliant on two for a year,” Sohan retain his migrant
the delivery of non-essential On many counts, Hamsa is can be sent anywhere. All cit- Kerala, where the manufactur- thanks to the British-era rail- sources, remittances and tour- added. workforce. “Except for some
goods in several areas, we are lucky: 80% of his workforce, ies have not recovered like us. ing footprint is low and very head connecting it to the erst- ism, which contribute “Only when more and more 20 people, the remaining
looking forward to businesses mostly migrants, has stayed They are saying, ‘oh there is no few items are produced while Madras province. The ₹35,000 crore annually to the cities get out of it (full or partial 70-75 workers are still here,”
picking up pace and resuming back, and Kochi, the urban way to pay now’,” he said. locally, inter-linkages of busi- chemical and fertilizer manu- state exchequer, but both sec- lockdowns), we can get closer he said. “If people (in other cit-
their growth trajectories, to hub, which is just an hour’s Despite resuming economic nesses are hard to ignore. facturing units in the area have tors have been hit hard. to normal,” said ICRIER’s ies) don’t build houses or buy
provide a fillip to the logistics drive from his factory, has activity substantially, Kochi Hamsa’s Southern Plywood also decided to wait it out for “Our future is connected to Kapoor. This has prompted furniture, we are doomed!”
space,” said Goel. largely opened up, consider- and its surrounding areas have company is located in Perum- things to improve in the rest of the world, not just Indian cit- economies, globally, to adopt [email protected]

mint vaccine maker said it was in talks with governments to back a

BookMyShow sacks, furloughs Karnataka planning to do away
manufacturing expansion that would help to scale up production
SHORT TAKES of future vaccines for covid-19, the disease caused by the novel
coronavirus. It gave no indication of the programme’s costs, say-
ing only that production would take place at sites in Europe and
18% employees amid crisis
MINT
with institutional quarantine
Bengaluru:An expert commit-
tee comprising epidemiologists
REUTERS

Roche partners with Gilead in North America and that it would reinvest any profit into corona- and virologists, among other
virus research and preparation for future pandemics. Meanwhile, medical professionals, has said
covid trial of drug combination GSK is working on its own covid-19 vaccine in collaboration with institutional quarantine must
AFP Munich: Roche Holding AG and French drugmaker Sanofi. REUTERS be avoided, Karnataka officials
Gilead Sciences Inc. are initiating a said. The state has reduced
late-stage trial of a two-drug com- mandatory institutional quar-
bination in hopes of creating a new Debt relief must be offered to all antine for people coming from
weapon in the battle against cov- other states to just seven days,
id-19. The study will pair Roche’s
developing countries: UN chief and is deliberating on doing away with it. SHARAN POOVANNA
immune suppressor Actemra along United Nations: United Nations Secretary-General Antonio
with Gilead’s antiviral remdesivir, Guterres said on Thursday that debt relief “must be extended to
the only drug shown so far to fight all developing, middle-income countries that request forbear- India can be an alternative to China
coronavirus. ance” amid the pandemic. New Delhi: Online ticketing site BookMyShow will either
BLOOMBERG REUTERS
“Many developing and middle- lay off or furlough 270 employees across its offices in India
for sourcing materials, says report
income countries are highly and globally, which make up 18.6% of its workforce amid New Delhi: The outbreak of the global pandemic may prompt
GSK aims for 1 billion doses with vulnerable and already in debt the covid-19 crisis. In an email to employees on Thursday, US-based companies to look at India as a sourcing partner for
distress — or will soon become founder and chief executive Ashish Hemrajani said the goods, and become a partial replacement for imports from China,
virus vaccine booster plan so, due to the global recession. company has tried to do its best to offer financial support, according to a Harvard Business Review article. The article said
Bengaluru: Britain’s GlaxoSmithKline laid out plans on Thurs- Alleviating debt relief, there- continued health insurance cover and outplacement sup- heads of several companies are confidentially asking their supply
day to produce 1 billion doses of vaccine efficacy boosters, or fore, cannot be limited to the port to try and make the exercise less painful and ease the chain teams to develop sources that are completely independent
adjuvants, next year as the race to develop and produce a success- least developed countries only, burden for employees and their dependents. LATA JHA of China. “In addition, in the US, there is pressure from employ-
ful solution to the coronavirus crisis heats up. The world’s largest he said. REUTERS ees who are wary of travelling to China,” it said. SHREYA NANDI
 CORPORATE FRIDAY, 29 MAY 2020
NEW DELHI 07
VIRUS EFFECT
Fitch warns
of big hit to Auto dealers may default on Pricing model based
on outcome to be key
asset quality
of lenders
loans due to unsold stock for IT firms’ survival
PRIYANKA PARASHAR/MINT
Shayan Ghosh Romita Majumdar
[email protected] [email protected]
MUMBAI An expected 25% dip in car sales may dent passenger vehicle dealers’ ability to repay debt MUMBAI

I A
ncreased pressure to lend n outcome-based pric-
will erode the asset quality Malyaban Ghosh ing model for new pro-
of Indian banks by 200-600 [email protected] jects may just aid the
basis points for at least the next NEW DELHI survival of IT service provid-
two years, Fitch Ratings said. ers, who are being forced by

S
The latest measures everal passenger vehicle deal- the economic disruption
announced by the Reserve ers are staring at an uncertain caused by the covid-19 pan-
Bank of India (RBI), including future as high levels of unsold demic to seek new ways of
an extension of the 90-day inventory of Bharat Stage-VI doing business, said experts.
moratorium on recognition of emission norm compliant Outcome-based models are IT service providers are forced
impaired loans and allowing vehicles are leading to increase in not new to the sector, but are to seek new ways of doing
banks to fund interest on interest cost, which many of them may generally used for proof of business due to the pandemic.
working capital loans, will put not able to repay to banks. concept before clients commit
a heavy burden particularly on Automobile dealers got a breather to invest in a technology or ent. Outcome-based models
state-owned banks to bail out from the banks because of the morato- solution. The current global will continue to be popular in
affected sectors, the ratings rium of six months on loan repayments crisis has increased the need support, maintenance, and
firm said in a note on Thurs- granted by the Reserve Bank of India. for businesses to have an IT business processing types of
day. Some of the car makers helped with the backbone, while they struggle projects where the outcomes,
“The lockdown to contain inventory cost on the unsold BS-VI to keep the lights on. With roles, and responsibilities can
the spread of the virus has stocks but for a limited period. lower capital inputs, this pric- be clearly defined, governed,
taken a severe toll on busi- However, as sales of passenger vehi- ing model can help businesses and reported,” said Sharath
nesses, supply chains and indi- cles are likely to decrease by more than efficiently to adopt technology Srinivasamurthy, research
vidual incomes. The impact 25% this financial year because of the without burning a hole in their director, enterprise solutions
for many micro and small, and slowdown in the domestic automobile pockets. This is more so for and ICT practices, IDC India.
medium business sectors is industry, heightened by the coronavi- smaller enterprises, which are The fixed-price or transac-
structural, a meaningful rus outbreak, dealers will likely need to rapidly adopting technology. tion-based pricing model is
revival is unlikely even when hold on to the inventory for more than Under the outcome-based most commonly used, apart
the lockdown ends,” it said. twice the expected period. model, the IT vendor commits from the time and material
In the near term, banks are This will significantly increase the Car dealers are saddled with twin problems of depleted car sales and operation costs like property rent payment. MINT to certain service model that
expected to prioritize asset capital requirements of the dealers. levels in the con- This model can involves periodic
quality stress management Dealers depend on banks and non- turing into dealerships. the same problem in which the stock become a further burden on dealers,” tract. If they help small payments for
and capital preservation. Pub- banking financial institutions (NBFCs) Sales plunged more than 70% with they hold at present is much higher he added. exceed their ser- businesses to long-term
lic sector banks may not be for short-term capital requirements, the lockdown still in place in urban than monthly sales. According to ratings agency Crisil, vice levels, they adopt technology I T p r o j e c t s
able to fully adjust their risk which include buying vehicles from areas, according to a Hyundai dealer in “Dealers who are renting or paying sales of passenger vehicles can decline get paid more based on
without burning
profiles, in light of the state’s manufacturers, and will struggle to Telangana. for physical infrastructure in high cost in the range of 24% to 26% in this finan- than the agreed e x p e c t e d
influence and management meet repayment commitments. However, the cost of real estate and real estate markets will continue to cial year as affordability of customers billing amount. If a hole in resource utiliza-
instability, seen by Fitch as key A Maruti Suzuki India Ltd dealer in other fixed cost still have to be borne by have a tough time going ahead if has fallen drastically because of the they default, they their pockets tion. Srinivasa-
reasons for poor execution. Tamil Nadu, who took loans from the dealers, said the dealer. demand doesn’t improve,” said Vinay economic slowdown. are penalized. murthy warned
“ICICI Bank and Axis Bank’s banks while purchasing stock “Sales in the first six months of This model that firms should
execution has also been less before the lockdown, is now stuck DEALERSHIP WOES this year will be down by more than works when there is mutual not look for an outcome-based
than satisfactory. However, with inventory of more than 45 50% and that means the number of trust and agreement between model just because they were
there is greater management days. AS sales crash, THIS situation may IN a normal year, DEALERS for small days required to liquidate the an IT vendor and a client on under financial constraints.
accountability because of the However, with automobile sales task dealers face an uphill propel a slew of manufacturers have manufacturers are stocks will double. How will we pay how to measure and report the However, the pandemic and
of repaying dealerships to shut stock with dealers also beset by the
presence of strong institu- crashing, dealers will face an uphill banks once loan shop, say industry expecting clearance problem of stocks the interest cost on the inventory service levels and the associ- lockdown have pushed busi-
tional shareholders and more task of repaying their loans to the moratorium ends experts by FY-end in March exceeding sales and other loans in such a scenario ated billing. The next level of nesses to explore the option
intense regulatory scrutiny banks once the moratorium gets as the fixed cost will be there?” maturity is to link outcome- aggressively.
compared with state-run lifted. asked a dealer principal of a leading based billing to business out- “All clients are facing prob-
banks, which are ring-fenced This, according to industry experts, “In such a scenario if we continue to Raghunath, leader, automotive prac- automaker in Haryana, requesting not comes, rather than IT out- lems because of the pandemic
from certain regulatory pow- might prompt a slew of dealerships to carry the stock, the interest cost keeps tice, EY India. to be identified. comes. This is gaining traction and are looking for ways to
ers because of the state’s close down. rising and some may not be able to “Some dealers may have no choice Some dealers with strong balance across ITeS, KPO and BPM reduce costs. That is why they
involvement,” it said. Dealers expected stocks to be cleared repay the banks. Most dealerships don’t but to exit the business. We could see sheets are, however, of the opinion that sectors. “We can expect an are increasingly seeking digi-
Bad loans as a percentage of by the end of March, when sales typi- have cash reserves like big businesses,” some consolidation as well across the the situation may not be dire for every- increase in outcome-based tal solutions and outcome-
total loans will trend up cally zoom before the end of the finan- said the dealer mentioned above, on dealership network. In addition, many one given the partial help from the pricing models (because of the based pricing models,” Keshav
because of both higher fresh cial year. With covid-19 spreading in condition of anonymity. OEMs across segments still have sizea- companies. If sales pick up in the com- pandemic), where the rela- Murugesh, group chief execu-
slippages and lower loan major cities, auto sales crashed during Dealers of some of the smaller auto- ble inventory levels at dealerships and ing months, the situation will start tionship between client and IT tive officer, WNS Global Servi-
growth, according to Fitch. the month as customers stopped ven- mobile manufacturers are also beset by if sales don’t pick up then that can improving, they said. vendor is strong and transpar- ces, said in an interview.

Bike-sharing, carpooling gain traction as offices reopen Firms pledge to not profit from
Salman S.H.
[email protected]
covid vaccines till pandemic ends as colleagues or the same resi- ing to carpool. “We are actively
dential building,” he said. trying to minimize the risk of
BENGALURU Routematic’s clients can exposure by building a closed-
now directly control the num- loop of known contacts while Leroy Leo Vaccines, when they suc- supply expected next year,

A
s offices reopen with ber of employees per trip. The carpooling. Even if there is an [email protected] cessfully complete clinical going by the pace at which the
the gradual lifting of startup, which used to facili- infection, it would be easier to NEW DELHI trials, will be available at a few development of vaccines is tak-
travel curbs and tate 50,000-60,000 trips per contact-trace,” said Prakash. dollars per dose, relatively ing place. Stoffels said that J&J,

G
demand increases, urban day before the lockdown, is Bike-sharing startup lobal manufacturers inexpensive compared to what which is working on a vaccine
mobility startups are rework- now doing Bounce has seen AstraZeneca, GlaxoS- even testing of the disease through a subsidiary, is also
ing their business models, and 1,000-1,500 trips Bike-sharing demand from mithKline, Pfizer and would cost, Soriot said. exploring tie-ups for manufac-
introducing new features to per day. startup Bounce financial services Johnson & Johnson on Thurs- GlaxoSmith- turing in India.
prepare for a world wherein all “Because there has seen demand firms and IT day pledged to supply covid-19 Kline CEO Emma The move by “There is a lot of
must live with the coronavirus. is a lot of dynamic from financial parks to procure vaccines on a no-profit basis to Walmsley, Pfizer AstraZeneca, J&J, capacity in India.
However, pre-covid demand routing that hap- improve access to any success-
services firms, IT vehicles in bulk. chairman and GSK and Pfizer So we are actively
will take several months to pens in our ser- “Earlier, our ful vaccine when it is available CEO A l b e r t aims at increasing exploring what
return since workplaces are Taking a safety-first approach, offices want to have a larger role vice, especially parks to procure B2B tie-ups for in the market. Bourla, and Paul we can do. This is
vehicles in bulk the accessibility
operating at minimal strength. in minimizing the risk of infection among commuting staff. HT between security bike rentals were “It’s certainly a situation Stoffels, Johnson all of over the
Sriram Kannan, co-founder checks at office with delivery where we will not charge any & Johnson’s vice of the potential world but the very
of employee transport man- want to have a larger role in number of passengers per trip. gates, and drop- startups, but now royalty and make no profit dur- chairman of the vaccine logical place for
agement startup Routematic minimizing the risk of infec- “Irrespective of how one off points, employers can now this is expected to change as ing the time of this pandemic,” executive com- capacity is India,”
said that in May, it saw demand tion among commuting staff. travels to work, there is a cer- intervene and limit the num- more commuters are expected Pascal Soriot, executive mittee and chief he said.
from financial services and Vinay Prakash, manager, tain level of risk they are ber of people their employees to use private modes of trans- director and chief executive scientific officer, made similar AstraZeneca is known to be
media firms as lockdown rules public policy at carpooling app exposed to, and this is highest are exposed to,” said Kannan. port to go to work…We are officer (CEO) of AstraZeneca, pledges at the briefing. in talks with Serum Institute of
were relaxed in many states. QuickRide said it is working on public transport. Hence, we QuickRide is also limiting providing corporates with said at a global press briefing Soriot said he expects the India over the manufacturing
Offices that have reopened with private offices and IT are mandating our users to the number of users per trip, bikes on lease for three-six hosted by the International first successful vaccine to be and supply of a covid-19 vac-
are prioritizing employee parks to relaunch carpooling carpool with people they are apart from building a network months, said Vivekananda Federation of Pharmaceutical ready by the end of the year, cine being developed by
safety and productivity, and options, while limiting the already in contact with, such of private vehicle owners will- Hallekere, CEO, Bounce. Manufacturers & Associations. with scaling up of capacity and Oxford University.

mint demand met during May so far was recorded at 166.42 GW on

Air India employee unions seek IIT alumni to set up testing lab in
May 26. In the same month a year ago, the peak power demand
SHORT TAKES was 182.53 GW. This shows a year-year-year decline of 8.8%. In
the first fortnight of the month, the peak power demand met was
recorded at 141.87GW on May 15, registering a slump of over 22%
₹50,000 cr rescue package
MINT
Mumbai with 10 million capacity
New Delhi: The IIT Alumni
Council will set up a massive
HT

Country suffered but government compared to the highest level in the same period of May 2019. An genetic testing lab, MegaLab, in
industry expert said peak power demand has risen mainly due to Mumbai for covid-19 and other
did not realize it: Sonia Gandhi heat wave and higher commercial and industrial activities under infectious diseases. It will have
PTI New Delhi: Congress president lockdown 4.0 effective from May 4. PTI a capacity of 10 million RT-PCR
Sonia Gandhi, in a video message, tests per month. The IIT body
said the entire country has suf- will start identifying partners to
fered from the two-month-long Nearly 2.3 mn people in quarantine run labs through a global com-
lockdown but this was something petition. The council has con-
PM Narendra Modi’s government
across the country, says Centre sulted several domain experts to set up the labs.ABHIJIT AHASKAR
was yet to realize. “Jobs were lost, New Delhi: Nearly 2.3 million people, who have moved within
millions of businesses were the country or arrived from international destinations during the
destroyed, factories were shut and ongoing lockdown due to the covid-19 pandemic, are currently Projects worth ₹21.11 tn at standstill
farmers had to sell crops.” ANUJA in quarantine facilities Mumbai: A joint forum of Air India employees and staff
HT
arranged by states and Union unions has sought a ₹50,000 crore financial rescue pack-
in red zone districts, says report
territories. According to an age from the government, stating the airline is a necessity Mumbai: While the government has relaxed lockdown norms,
Power demand surges as mercury official estimate, as on 26 May, for the country. In a letter to PM Narendra Modi, the Joint as many as 8,917 projects worth over ₹21.11 trillion—which
a total of 2.28 million people Forum said that Air India is a “necessity” for the country, account for 37.4% of total projects underway in the country—in
soars, industrial activities revive were in quarantine facilities— especially in times of crises, and a financial package will aid 108 red zone districts are at a standstill, a survey said. When the
New Delhi: Heat wave coupled with higher commercial and almost double from 12 days not just the carrier but the entire aviation sector. “We government announced lockdown 4.0, it allowed relaxations in
industrial activities under lockdown 4.0 has pushed peak power ago (14 May) when the people request you to kindly grant Air India ₹50,000 crore pack- the green, orange and red zones, while restricting activities in the
demand closer to the normal level this week as compared to May put under quarantine were age,” the Joint Forum said in the letter. PTI containment zones. The zones have been classified based on the
last year. According to the power ministry data, peak power nearly 1.2 million. PTI number of covid-19 cases. PTI
08 FRIDAY, 29 MAY 2020
NEW DELHI

REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE

BHARAT’S LOCKDOWN
DIET IS BOILED RICE, SALT
A ground report reveals pervasive hunger and undernourishment in rural India awash with returning migrants

Clockwise, from left: Residents of Kherwa village at a hunger strike last

week; Manpyari with her children at the MGNREGS worksite near Banjara
village; and eight-year-old Sandip whose diet is boiled rice and salt on
most days in Jhandupurva village in Bundelkhand. SAYANTAN BERA/MINT

Sayantan Bera are unaffordable. During a three-day visit off the list, most likely due to a mismatch hunger was killing them. Later that day, back is a compulsion),” said Suresh Kumar
mint
[email protected] to Bundelkhand last week, this reporter of details while linking their ration card SHORT local government officials reached the vil- whose family had to borrow ₹6,000 to pay
BANDA witnessed signs of pervasive hunger and with Aadhaar number. STORY lage with an offer to settle matters by pro- for his journey back home. Earlier that
undernourishment. Entire families, The other problem is that the list of viding 5kg of grains per family. They day, Kumar went to a MGNREGS worksite

T
hanks to an all-familiar power including children are skipping meals; beneficiaries is based on the population refused. As evening fell on Kherwa, chil- but was turned back.
cut in the evening, it’s pitch families out of the food security scheme figures from the 2011 census. Poor WHAT dren with skeletal figures rolled on the Early evening, that worksite next to
dark in Jhandupurva village. A are on the brink of starvation. households with young chil- mud, pleading for food. Banjara village was brimming with peo-
few torch lights from smart The region is a hub of dren and newly married Bundelkhand in Uttar Pradesh “We were tired. The local officers are ple. Over 50 workers were digging
phones pierce through the distress migration— women are often left is an impoverished hub of like monkeys sitting on a tree, eating fruits earthen pits and carrying the soil to make
darkness and illuminate the shape of an they say 80% of the out. Currently, the distress migration. Now these and throwing leftovers at us,” said Babulal, a narrow road. Among them was Manpyari
Delhi migrant workers are returning
eight-year-old boy. Thin, frail, head tilted families here have a food security Act a burly man in his 50s. and her children, two boys aged 10 and 13,
a little to the side, he can barely speak member who is a covers about 770 from states like Gujarat, It took the district administration more who were helping their mother struggling
when asked his name. Sandip is so weak migrant. Now, million people, Maharashtra and Delhi than three days, during which residents with a hoe. Manpyari’s husband who
that he stutters and pauses between they are coming UTTAR PRADESH but a recent esti- continued their hunger strike, to agree to works at a construction site in Delhi could
words. back, returning Banda mate by econo- the demand of a ration card for every fam- not send money for two months. She is
The boy has already finished dinner, his from states like Bundelkhand mists Jean Dreze AND ily. It took kuchbandhiyas two and a half hoping the MGNREGS wages will provide
mother Vidya said. Boiled rice with milk: Gujarat, Maha- and Reetika months of struggle to achieve what could the much needed cash to buy groceries.
about half a litre of milk for the six-mem- rashtra and Delhi Khera suggests Entire families, including children, have been fast tracked by the govern- A peculiar feature of the job scheme is
ber family, including four children. A rice (which is 700km that at least 100 are skipping meals; families out of ment—enrolling vulnerable families that workers are paid according to earth-
gruel with more water than milk, and salt away). Migrant work- million eligible peo- the food security scheme are on under the NFSA during a pandemic. work and not a daily wage. For instance, if
added to taste. No wonder Sandip is suf- ers are fleeing both job ple have been left out. the brink of starvation. Wages Manpyari manages to complete earth-
MADHYA PRADESH from the rural jobs scheme are
fering from what nutritionists term “wast- loss and the coronavirus Gita, a widow and BACK TO NOWHERE work equivalent to 80 cubic feet in a day,
hard to come by
ing”—a sign of acute malnutrition and pandemic for the relative
chronic hunger.
This landless family dependent on day
safety of their homes.
mother of seven, is among
them. She relocated with her chil-
But in an agriculturally-impoverished dren to her in-laws’ house after her hus-
A t six in the morning last Wednesday,
Prem Narayan was the first to arrive
at the office of a local non-profit in Atarra.
she will receive a day’s wage of ₹202. This
is why her children were helping her fin-
ish the task by the end of the day.
jobs is covered under the federal food region, their only hope is the paltry wages band died of tuberculosis. Despite MOREOVER He came to collect a food kit consisting of At the same worksite where Manpyari
security scheme and normally gets 20kg from the rural jobs scheme. Even those are repeated attempts, Gita could not get a pulses, grains and oils the non-profit toiled with her young children, 65-year-
of rice and wheat every month. As a special hard to come by. ration card. The family’s daily bread is Just providing rice and Vidya Dham Samiti was distributing old Haricharan worked with his two
assistance to help families tide over loss of now contingent on the charity of neigh- wheat at a highly subsidized among vulnerable families. A year ago, grown up sons. He had high hopes on the
economic opportunities during the lock- FALLING OFF THE MAP bours and handouts from local non-prof- price may not be Prem Narayan could not have foreseen scheme to sail him through these difficult
enough when day jobs
down—enforced to contain the spread of
covid-19—the family is also getting an I n Musanagar, a tiny hamlet in Atarra its. The afternoon this reporter met her,
town in Banda, women struggling to the menu for lunch was the ubiquitous salt
extra 20kg of grains free for three months. cook and feed their children were on the and rice.
are scant and families
have no cash in hand
standing in a queue to collect a handout.
Some days back he had made an ardu-
ous five-day journey from Surat in Guj-
times. It turns out, the family had already
finished earthwork equivalent to 100 days
(the maximum permitted in a year) but
But despite this support, they are bat- edge. Most here start their day before sun- However, nothing was more symbolic arat, piled into the back of a truck like an kept on working. “I think they will not
tling persistent hunger. rise to unload sacks of groceries at the of systemic neglect than a visit to a ration “animal” with 70 other migrant workers. deny the wages even if I work for more
Without a day job, Sandeep’s father local market. They receive between 50 shop on the fringes of the Atarra town. A HUNGER STRIKE “We slept while standing and only had than 100 days,” Haricharan said. This des-
Rajesh has run out of cash. Earlier that paise to a rupee for a bag, but there is too Last month, as part of a relief package to
day, he borrowed ₹1,000 at an exorbitant much of a rush nowadays.
10% interest per month. Vidya meanwhile
help poor families deal with the lockdown,
There are fewer bags to unload and the Centre decided to add a kg of nutri-
T he sights and sounds of Kherwa vil-
lage in Naraini tehsil of Banda
seemed straight out of a surreal film. The
soaked chickpeas to eat,” Narayan said.
Yet, he would not waste much time before
making his way back to Gujarat once the
peration to work without guaranteed
wages will work out for Haricharan only if
the government revises the 100 day norm.
banks on barter—exchanging wheat for more hands willing to work. Labouring for tion-rich pulses to the monthly quota of word bhookh, vernacular for hunger, was lockdown is lifted.
vegetables, spices and oil. The subsidised four hours between 3am and 7am, the ration for every NFSA household. But the scribbled with bright red paint all over— There is little which can sustain landless HOPE FOR NORMALCY
food grains double up as a currency. But it lucky ones earn about ₹50. At least a third kala chana or black gram supplied to the
also means the grains get over quickly. In of the families in Musanagar do not have shop was in fact green: it was rotten and
the morning, Vidya ration cards under the infested with fungus. The shop owner
on a giant concrete pipe at the entrance to
the village, on the walls of mud huts, and
each and every brick and mortar toilet
families in parched Bundelkhand. Agri-
culture is marginal. The rural jobs scheme
which guarantees 100
D espite the gloom all around, there
were moments when the desire for
normalcy shone
bought a kg of brinjals in National Food Security Ram Bihari Yadav said the entire supply of built with government grants. days of work for a family through. This reporter
exchange for a kg of NFSA beneficiaries Act (NFSA), 2013, which 800kg he received from the Food Corpo- For over two months, ever since a strin- is mired by low wages There is little which can met a young five-year-
wheat. “It has been often fall off the list, guarantees 5kg of grains ration of India was fungus-ridden, not gent lockdown was enforced on 25 March, and delayed payments. sustain landless families in old boy Anshu and his
months I cooked arhar per person per month. even fit to use as animal feed. Yet families the residents have been knocking on all Of late, work generated friend who were busy
(a nutrition rich pulse most likely due to a “Who do we complain were collecting their share. doors for food relief and demanded that all under the Mahatma Bundelkhand. Agriculture is working on a pile of
variety),” she said. mismatch of details to? Who do we cry A brief chat with Yadav led to more dis- excluded households be enrolled under Gandhi Rural National marginal. The rural jobs earth with a hoe. This
The plight of this fam- before?” asks an angry closures. The Uttar Pradesh government, the food subsidy scheme. But local offi- Employment Guarantee was in Kherwa, where
ily, from the Banda dis- while linking their ration Laxminiya. She recently for instance, announced that during the cials dropped some grains as a one-time Scheme (MGNREGS) scheme is hamstrung by low the elders were busy pre-
trict in the dry and arid applied for a ration card lockdown period families without a ration relief and disappeared. has picked up pace but paring for the hunger
Bundelkhand region of card with Aadhaar w h i c h h a s b e e n card will receive subsidised grains. But The residents of Kherwa are Kuchban- there are too many wages and delayed payments strike.
Uttar Pradesh, points to approved, yet she was Yadav is yet to receive any extra allocation dhiyas, a nomadic tribe which roam villa- hands eager to work. “We are building a
a peculiar problem. Just providing rice asked to wait for three months to get her of grains to implement this promise. ges in Bundelkhand sharpening stone Several rights groups have urged the colony,” Anshu said in an excited manner.
and wheat at a highly subsidised price of share of grains. The local ration shop Families without a ration card often grinders and selling trinkets and clothes. government to pay workers daily wages in In the local parlance, colony means subsi-
₹2-3 per kg may not be enough when day dealer told her she can lodge a complaint visit his shop but are turned away. He The lockdown, which also sharpened cash, and provide on-site employment to dised government housing—a highly
jobs are scant and families have no cash in before the district magistrate if she wishes. added that more families are being caste prejudices, meant they were unable workers and increase workdays to help sought-after benefit in these impover-
hand. Is it possible to survive on just boiled Another woman, 40-year-old Siasakhi enrolled under NFSA, but old beneficia- to move around and were left to fend for families tide over the ongoing pandemic. ished villages. As I moved further away
rice and rotis? said that names of two members in her six- ries are also getting dropped. In 2020 till themselves. The Centre is yet to relax the norms but and was about to disappear into a lane,
But most families are doing exactly that: person household were deleted from the date, 42 names were included but 72 were Frustrated, they decided to sit on a hun- has provided an additional ₹40,000 crore Anshu screamed at the top of his voice:
consuming boiled rice and salt or wheat ration card recently. This was a pervasive dropped from the list of beneficiaries ger strike last week. They banged steel for the scheme to ensure more families get “Arey colony nahin, toh basta de deo.” If
flatbread with chilly paste. Even potatoes complaint. NFSA beneficiaries often fall Yadav caters to. plates and sang in a languid tone how the work. “Wapas jana majboori hai (going you can’t give a colony, give a school bag.
 INESS O
US FRIDAY, 29 MAY 2020
NEW DELHI 09

F
Life
ISTOCKPHOTO

REAL TIME
LEADERSHIP
SHALINI LAL

Write to us at
[email protected]

IN THE NEW OFFICE,

EVERYONE NEEDS TO
THINK AS A FOUNDER
ISTOCKPHOTO

F
or over two decades, the idea of the ambidextrous organiza-
tion has influenced leaders across the world. The idea is sim-
ple. To do well over the long run, any organization has to be
good at two very different tasks—exploitation and exploration.
There is, however, a tension between the two. The skills and
mindsets that support the two are different. So different that
Charles A. O’Reilly III and Michael L. Tushman in their famous
2004 Harvard Business Review article, “The Ambidextrous Orga-
nization”, recommended that it would be best if different parts
of the organization focused on each.
The first of these, “exploitation”, is easily translated to “busi-
ness as usual” and is about becoming better at the business
already working for you. It is about building a better brand and
attracting more customers. This is the place where logic holds

At home, CEOs learn to

sway. The problems to be solved are amenable to logic, analysis,
tools and processes. There are uncertainties but can be managed.
The natural home ground of the MBA. The second, “exploration”,
is about discovering future business opportunities by predicting
trends in popular culture, technology, geo-political realities and
economics, and then building a response that can serve the best.

FACE THE CAMERA

All this is a messy non-linear process. Part intuition, part sci-
ence, and part pure economics. Traditionally, the playground of
innovators and entrepreneurs.
Given how distinct the work, skills and mindsets are for these
two tasks, different parts of organizations have focused on each.
This was always an uneasy balance, but
Exploration is it worked, till now.
A sudden shift to remote work means corporate leaders have had to learn to shoot video, discovering The pandemic has put an end to
business as usual. So what does this
communicate better on screen and do tasks that their assistants would handle in the office future business mean for leaders from here on?
opportunities The answer is doing the difficult bal-
by predicting ancing act between exploration and
Shweta Taneja new normal,” says Ashutosh Gupta, country manager, ers now need to practice more emotional intelligence trends exploitation. This balance, which once
LinkedIn India. when using digital tools, says Shalini Bhattacharya, resided at the organizational level, has

P
rashanth Achar, 51, was making a video on The lockdown has brought the communication func- founder, White Ray Coaching, who specializes in leader- now moved to team and individual lev-
anxiety management for his employees at tion to the fore and accelerated deployment of video con- ship coaching. els. It is not just organizations that need to balance the two tasks.
GP Petroleums, sometime in April. But the ferencing apps like Zoom, Skype, WebEx, says N. Bringi Individual leaders will have to do it too.
experience was making the Mumbai-based Dev, advisor and retired professor, Indian Institute of THE RIGHT ANGLE A recent study by the Miami Herbert Business School on what
CEO himself tense since it was his first time Management-Bangalore. “Leadership has realized they With the distance of working-from-home, the personal differentiates organizations that have managed to stay “liquid”
working with a selfie camera. Before the lockdown, his cannot take communication for granted anymore and life has also become part of the professional space, giving during the pandemic is the willingness of leaders across levels to
PR team used to take care of such initiatives. “You look need to spend time for volatile, uncertain, complex and more creditability to the leader’s image. When Arvind shift their focus from exploitation to exploration. Not surpris-
so anxious yourself,” laughed his wife, seeing the result. ambiguous situations and be prepared and adequately Subramanium, managing director and chief executive ingly, in the most responsive organizations, leaders are spending
He did many takes that day, finally sending the one provisioned in terms of infrastructure, security, access officer of real estate business Mahindra Lifespaces, suf- more than half of their time on the medium to long term futures.
which his wife shot. and bandwidth,” says Dev. fered a back spasm, he conducted a video conference With covid-19 and technology changing the rules of the game,
Ever since the lockdown started, corporate leaders It’s not that easy though. In online while lying in his bed. To avoid today every leader needs a much stronger eye on the future.
have seen a dramatic change in the way they communi- interactions, it’s easy to miscommu- The camera embarrassment, he had switched off This is, of course, a mixed blessing. The task of business leader-
cate. In the absence of face-to-face meetings with clients nicate as emotions, body language are the video but it turned out that his ship gets even more complex, as leaders are forced to shift their
or employees, it’s the camera pinhole that has become harder to decode. That’s why Achar lens has team could see his supine posture. focus several times a day between business as usual and business
the medium to instill confidence, drive productivity and spends more time in online meetings. become the “My three children keep demanding for the future. They will need the logic of the MBA while dealing
mentor the organization, and leaders are rising to the “The lesser I see the team, the more devices and spaces at home while I’m with logical and analytical problems, and they will need the logic
occasion by upskilling themselves. CXOs, especially important I think is the need to medium to instil in meetings and my employees hear of the entrepreneur while dealing with the future.
from traditional industries, have been taking trainings engage, empathize and minimize confidence, drive them screaming,” he says, laughing, In the past, ambidexterity referred to the ability to use both
by their digital teams, learning new tools to do webinars, anxiety,” he says. productivity and adding that needs to improve his tech one’s left and one’s right hand equally well. In the future ambi-
e-town halls, virtual meetings and virtual coffees. Globally, according to LinkedIn’s skills more. dexterity will be about the mind. It will mean the ability to use the
“I call it public speaking in private, to a camera,” laughs survey, two out of five professionals mentor the Like Subramanium’s incident, the left brain focused acts of exploitation as well as the right brain
Achar. working from home believe their organization team meeting which Noida-based focused acts of exploration. It is not just organizations which need
The use of camera has become critical, agrees Koki leaders can help them feel supported Saurabh Goyal, president, Havells to be ambidextrous. It is each of us.
Sato, who took the mantle of general manager in Takeda by organizing more team video India Limited, was heading, erupted
India, a pharmaceutical multinational, in April. Sato, meetings. “There’s no feedback into laughter when his vegetable ven- Shalini Lal is the co-founder of Unqbe, a think tank and advisory
who has been stuck in Ukraine since India stopped inter- loop, so it affects discussions on sensitive personal top- dor called him in the middle of it. “These moments might firm focused on the future of work.
national flights, has slowly developed trust with his 100- ics or even ideating together using a whiteboard,” says sound embarrassing but they help soften relationships
plus employees in India using WebEx and Microsoft Jacob Peter Kidangath, senior vice president, Robert and make me look more human,” says Goyal.
Teams, doing one-on-one meetings, webinars, town Bosch Engineering and Business Solutions. This has At the end of the end of the day, it’s the art of listening
halls, presentations and discussions as well as attending made a fundamental change in the way Kidangath com- and empathizing that will define a leader in this new nor- Want to know what Gens Y and Z
informal catch-ups. “It was sudden, so I made connecting municates. “Since observing body language is not pos- mal, adds Mankiran Chowhan, managing director, soft- really want? Find out more about
with the team a key priority,” he says. sible, as a leader it has become important to use the ware solutions company SAP Concur. “We have to pre- their world, what they follow, and
A recent LinkedIn survey suggests 67% of senior exec- right pace, right words, use pictures and examples,” he pare harder for the meeting and listen more actively as why, in Business Of Life’s podcast
utives have increased their time spent in online learn- explains. it’s virtual.” The Millennial Mind hosted by
ing. “Most of these are first-time managers and senior The medium has pushed leaders to communicate Pooja Singh
leadership who are figuring out how to operate in the feedback on one-on-one calls instead of messages. Lead- Write to us at [email protected]

Bengaluru’s supersized breweries go the takeaway route

Shivani Kagti already have drained their brews as they were about 15% of its stock in the first week of the breweries in the first week. “I went to breweries
unsure about whether we’d get permission to sell,” announcement being made. Additionally, they’re where I was a regular,” says Manchanda, who found

A
little under two weeks ago, the Karnataka he says. also selling liquor bottles at MRP. “If we could that each place had a fairly organised system. “At
government allowed microbreweries to sell Given that microbreweries in Bengaluru are afford to retain the stock, we would have preferred Windmills, a masked valet asks you want you want.
beer in takeaway growlers (airtight jugs super-sized (as per a government order they have that but we need to pay salaries and overheads,” If you are buying in their bottle, they bring what
made of glass, ceramic or stainless steel), bringing to be located within premises spanning a minimum says Arun George, one of the co-owners of Toit. you want. You pay online via mobile apps. If you
some cheer to brewery owners, who hope this will of 10,000 sq ft), upkeep and maintenance has been Pandey shares a similar sentiment. “Right now, we have a growler, they collect and fill it. The person is
become the norm in a city that loves its beer but has a challenge with no revenue coming in since the just need to liquidate whatever assets we can as wearing gloves and mask all the time,” she adds.
been under lockdown for more than two months. lockdown was announced in March. The largest there are too many liabilities,” he says. Akash Hirebet, beer consultant and co-founder
The excise department has agreed to let micro- among them is Byg Brewski in Hennur, in north There was a rush for beer during the first week- of Craft & Co, an online community of craft bever-
breweries sell existing stock of beer until end of Bengaluru, which is spread over 65,000 sq ft. end but demand has tapered off after that. Vishal age enthusiasts, has put up a rather helpful post on
June. For brewers, this is a relief as craft beer only Pravesh Pandey, director-partner at Byg Brewski Atreya, chef and managing partner, The Pump Facebook with a list of 30+ microbreweries that are
has a shelf life of three months. Bengaluru’s 60 Brewing Company, likes to look on the bright side. House, is hopeful things will pick up since public selling craft beer along with details on which beer
microbreweries are large spaces of at least 10,000 “When we reopen we won’t have a problem with transport has been allowed now. “We have about types are available. “I picked up some brew from
sq ft, and brew several thousands of litres of beer. social distancing among tables. In fact, we’ve 5,500 litres of beer in stock and I don’t think we’ve Arbor Brewing Company few days ago but am wait-
Most of the stock of craft beer would have had to already compiled a 30-pointer guideline on what sold even 1,000 litres. There’s only a limited ing for my growler to arrive so that I can head out to
be drained by the end of June if the order had not measures we’ll be taking right from valet to hostess amount [5 litres] that one person can take away. more places,” says Hirebet, who has also shared
come through. The announcement came after the to service in the kitchen. There will be new roles Plus, craft beer cannot be stored at home for more specifications on kind of containers people are
Craft Brewers Association of India (CBAI) in Benga- like someone who just keeps sanitising the space,” than a few days,” Atreya says. allowed to carry to bring their beer home. Most
luru spent over a month lobbying with the excise Pandey says. Byg Brewski has stuck instruction labels regard- microbreweries also have stock of one litre and two
department. Apart from selling their own brew, bars have also ing storage and consumption on each bottle. litre corked or sealed bottles that they are providing
Ajay Nagarajan, CEO, Windmills Craftworks, got permission to sell existing stock of liquor bottles Some craft brew enthusiasts have made multiple to customers.
said it the utility bills alone to keep beer cold runs at MRP until end of May. Toit, which had 20,000 Thousands of litres may have to be drained as craft trips to their favourite breweries already. Food con-
up to a lakh a month. “Some breweries might litres of beer in its cold room, managed to move beer has a shelf life of three months. sultant and writer Monika Manchanda visited three Write to us at [email protected]
10 FRIDAY, 29 MAY 2020
NEW DELHI NEWS

Uninsured
India co-opts solar grid to Modi makes case for
PPE kits
each state to have at
add to bills
FROM PAGE 1
fend off OBOR’s shadow least one ‘solar city’
PTI

“These charges include cost of FROM PAGE 1

PPE billed at as high as
₹5,000-9,000 a day; care and The proposed grid gives India a chance to take the lead in evolving global strategies power generation”, the state-
hygiene, and waste manage- ment said.
ment charges, which are other- The move could add heft to
wise part of the room rates,” Utpal Bhaskar India’s image as a global clean
Chopra said. “The current con- [email protected] energy champion, as the
struct of a health insurance pol- NEW D review also focused on creat-
icy does not cover these spe- ing an ecosystem in India for

I
cialized charges for covid treat- ndia has invited bids from con- manufacturing of ingots,
ment, including the cost of care sultants to make an ambitious HDFC Life wafers, cells and modules.
launches
and hygiene and, hence, insur- cross-border power grid plan rider for
This ties in efforts by India
ers are not wrong in making that would seek to transfer solar cancer, to become an integral part of
such deductions,” he said. power generated in one region accidental the global supply chains, as PM Narendra Modi has called
The Insurance Regulatory to feed the electricity demands of death and firms look to move production for an innovative model for
disability
and Development Authority of others. lines out of China due to the rooftop solar plants.
India (Irdai), in its circular A request for proposals (RFP) bit.ly/2XyGlLo disruptions caused by the cor-
dated 27 September 2019, pub- prepared by India’s ministry of new onavirus pandemic. cost of power generation.
lished a list of 68 items that can and renewable energy for inviting “Emphasis was also made on “Policy initiatives including
be treated as optional. The list consultants to develop a long-term ecosystem development for revised Tariff Policy and the
includes kits that are used for roadmap for the ‘One Sun One manufacturing of ingots, Electricity (Amendment) Bill
treatment of patients. The reg- World One Grid’ (OSOWOG) com- wafers, cells and modules in 2020, to redress the problems
ulator has left it to the insurers’ prises a technical and financial pro- India, which would also help afflicting the power sector
discretion whether they want posal. The RFP was reviewed by generate employment, in addi- were discussed,” the state-
to pay for such kits. Mint. The ministry has called a pre- tion to various other advanta- ment said.
“Such costs are not covered as bid meeting with the interested ges,” the statement said. Reflecting its intention to
they can be treated as optional. consultants on 5 June. The pre-bid meeting for developing One Sun One World One Grid has been called 5 June. BLOOMBERG India is home to the world’s use the coronavirus crisis to
The regulator has mentioned “This is by far one of the most largest clean energy pro- initiate power sector reforms,
‘kits’ in the list because there are ambitious schemes undertaken by supply across borders, with the “With India at the fulcrum, the about India starting consultations gramme, which the government
a variety of them available and any country and is of global signifi- mantra of ‘One Sun One World One solar spectrum can easily be with the World Bank as its techni- aims to have India is home to has readied a raft
PPE is just one of them,” said cance in terms of sharing economic Grid’ (OSOWOG). The vision divided into two broad zones, viz. cal partner to implement the global 175GW of clean the largest clean of measures. In
Prasun Sikdar, managing benefits,” said a senior Indian gov- behind the OSOWOG mantra is Far East which would include electricity grid plan pitched by energy capacity energy scheme, the draft Electric-
director of ManipalCigna ernment official, requesting ano- ‘The Sun Never Sets’ and is a con- countries like Myanmar, Vietnam, Prime Minister Narendra Modi. by 2022, includ- which aims to ity Act (Amend-
Health Insurance Co. Ltd. nymity. stant at some geographical loca- Thailand, Laos, Cambodia, etc., and The plan has been spread across ing 100GW from ment) Bill, 2020,
have 175GW of
The excluded items, which The building of the global grid tion, globally, at any given point of Far West which would cover the three phases. The first phase deals solar projects. the government
also include oxygen masks, comes against the backdrop of time,” according to the RFP. Middle East and the Africa Region,” with the Middle East-South Asia- The current clean energy has pitched for a
may account for almost 20-25% China’s attempt to co-opt South-East Asia (MESASEA) capacity is 33GW capacity by 2022 cost-reflective
of hospital bills. Given that the countries into its ambitious POWER RACE interconnection for sharing of solar power. tariff and setting
average cost of covid-19 treat- One Belt One Road initia- green energy sources such India is also up an Electricity
ment could be ₹1.9 lakh, a tive that seeks to invest bil- BUILDING of the COVID-19 has given THE global grid may FOSTERING cross- as solar for meeting electric- ushering in next-generation Contract Enforcement
patient may have to pay as lions of dollars in infra- global grid is to
countervail China’s
India a chance to be leverage the ISA,
seen as taking a lead which India
border energy trade
is key to Modi’s
ity needs including peak power sector reforms that Authority to implement power
much as ₹47,500, or 25% of the structure projects includ- attempt to co-opt in evolving global co-founded and has neighbourhood-first demand. include implementing a direct purchase agreements (PPAs).
hospital bill. ing railways, ports and countries into OBOR strategies 67 member nations policy Fostering cross-border benefit transfer (DBT) scheme Mint reported on 18 February
This is not a blanket exclu- power grids across Asia, energy trade is an important for better targeting of subsidies about the Union government’s
sion and insurers are paying for Africa and Europe, and the part of Modi’s South Asia- and a new tariff policy, which plans to set up a new tribunal
kits wherever it forms a part of withdrawal of the US from the Paris The global grid may also leverage the RFP added. focused neighbourhood-first pol- proposes a cost-reflective tariff, solely to enforce PPAs.
the packaged rate. “If PPE kits climate deal. the International Solar Alliance The ambitious task unveiled on icy. India has been supplying power penalty on unjustified power “PM emphasized the need
get billed into the overall room It also comes at a time of the cor- (ISA) co-founded by India that has 26 May has been taken up under to Bangladesh and Nepal and has cuts and limiting cross-subsi- to enhance consumer satisfac-
charges, insurers pay for it, but onavirus pandemic giving India the 67 countries as members. It has the technical assistance pro- been championing a South Asian dies. tion while increasing opera-
if they are shown separately opportunity to be seen as taking a become India’s calling card on cli- gramme of the World Bank with Association for Regional Coopera- A cost reflective tariff struc- tional efficiency, and improv-
like in the case of non-covid lead in evolving global strategies. mate change and is increasingly the last date of proposal submission tion electricity grid minus Pakistan ture is aimed at helping elec- ing financial sustainability of
treatments, then they can be “India’s Prime Minister recently being viewed as a foreign policy being 6 July. to meet electricity demand in the tricity distribution companies, the power sector,” the state-
excluded,” said Kapil Mehta, called for connecting solar energy tool. Mint reported on 9 January region. or discoms, realize the actual ment added.
co-founder, SecureNow.
Anything that is billed exorbi-
tantly will not be covered, said
Dr S. Prakash, managing
director of Star Health and
Allied Insurance Co. Ltd. “Exor-
bitant by definition means any-
thing that is above the market
Regulators sharpen focus on Chinese FPIs RBI may allow relaxation for
price. There are various grades
of PPEs. Hospitals can charge up
to ₹1,000,” said Prakash.
Insurers said there’s a prob-
FROM PAGE 1

investments has grown in the

beneficiary but the rules are
yet to be finalized,” this person
said.
MSME loans, scrap risk weight
lem with the number of kits that aftermath of the coronavirus “New FPIs coming from FROM PAGE 1 asset value as per the risk facilities up to 20% of the out-
are billed as well. Dr Prakash said pandemic and subsequent either China or Hong Kong weight. The riskier the asset, standing credit limit up to ₹25
if there are 10 patients in an ICU border skirmishes. would require prior Sebi to rescue the struggling sector the higher the risk weight and crore as on 29 February. For
and there are four nurses in four Equity indices have been approval after proper vetting. that employs millions of Indi- the lower its value. A lower risk instance, if a business has a
shifts, 16 PPEs are used in a day falling sharply across econo- The specific modalities are ans, follows the government weight means the bank will loan outstanding of ₹1 crore, it
to take care of 10 patients. So mies as the world grapples being worked out by the DEA,” agreeing to fully guarantee have to set aside less capital can borrow an additional ₹20
each patient should be charged with the pandemic. This has said the second person. these loans in case of default. against these loans. lakh. Only existing borrowers
for 1.6 PPEs per day. “If every made many bellwether stocks The government has According to the official cited The RBI’s latest move aims with revenue of up to ₹100
patient is charged for four PPEs cheaper and affordable for already restricted foreign above, who spoke on condi- to encourage crore and those
for four shifts, it is exorbitant. If both domestic and foreign direct investment (FDI) from tion of anonymity, the uncon- banks to provide RBI’s move aims to with up to 60 days
we find such abnormal instan- investors. Last month, Hous- countries that share a border ditional government guaran- fresh credit to encourage banks past dues can
ces, we won’t cover.” ing Development Finance with India, including China, tee gives enough comfort to these borrowers to provide fresh avail of this
Insurers paying for PPE kits Corp. Ltd said the People’s Currently, there are only 16 registered FPIs from mainland China but also Hong Kong. Since the RBI to remove the risk weight without the pres- credit without the scheme.
don’t seem to be picking the tabs Bank of China (PBOC) had but Hong Kong has 111 registered FPIs investing in Indian markets. 22 April notification under on these loans, leaving banks sure of setting The tenure of
pressure of setting
for non-covid patients. For raised its stake in the Indian Foreign Exchange Manage- with more capital to lend. aside additional loan under this
instance, New India Assurance, lender to 1.01% from 0.8% in The US government on stricter know-your-client ment Act (FEMA), any FDI Queries sent to an RBI capital against aside additional scheme will be
Oriental Insurance, National the March quarter through Wednesday said it could no (KYC) requirements, not just coming from these countries spokesperson remained unan- these loans. capital four years, with a
Insurance and United India open market purchases, longer certify Hong Kong’s at the time of registration but needs prior approval from the swered. Loans under moratorium
Insurance are covering the cost prompting concerns about political autonomy from also on a continuous basis— government. While the FDI The central bank assigns this government period of one year
of PPEs for covid patients if it is foreign acquisitions of strate- China, a week after Beijing they would need to comply route has been restricted, the risk weights to every type of scheme will be guaranteed by on the principal amount. The
under reasonable and custom- gically important Indian com- declared its intention to pass a with higher reporting stan- FPI route is still open. loan, depending on the likeli- the National Credit Guarantee NCGTC will not charge any
ary charges, said Dr Suman panies in a depressed market. national security law curtail- dards,” said the first person To be sure, FPI ‘control’ of hood of its default. The risk Trust Co. Ltd (NCGTC) in the guarantee fee.
Tilak, chief medical officer, Par- Currently, there are only 16 ing the rights and freedoms of cited above. Once approved, Indian companies is already weight on a government bond form of a Guaranteed Emer- The interest rate under the
amount Health Services (TPA) registered FPIs from mainland Hong Kong citizens. this would be applicable for restricted as a single FPI can- is zero, while it could be as gency Credit Line (GECL) scheme is 9.25% if the loan is
Pvt. Ltd. Only New India Assur- China but Hong Kong has 111 “If the (DEA) proposal is firms that have 10% of their not hold more than 10% of the much as 100% for lending to a facility. The guarantee cover extended by banks and finan-
ance has agreed to cover PPE registered FPIs investing in accepted then FPIs from these funds coming from either paid-up capital of a listed com- real estate developer. The will be available for additional cial institutions, and 14% if
costs for non-covid patients, she Indian markets. two locations would face China or Hong Kong as the end pany. bank accordingly adjusts the working capital and term loan given by NBFCs.
added.

Google may buy stake in Voda Idea UAE’s Mubadala eyes India Set For Deepest Recession
FROM PAGE 1
$1 billion stake in Jio
investment in Vodafone Idea’s required to run it, and a part-
rival Jio Platforms, which nership with a telco can give
FROM PAGE 1 have some kind of bunching of
activity towards the end of the
employment and income
prospects can lead to a breed of
5% stake sale could fetch the houses the digital assets of them immediate access to mil- will potentially allow faster financial year to meet their tar- cautious consumers,” said
FROM PAGE 1
company around $101.5 million. Reliance Industries Ltd. lions of subscribers. ver Lake, Vista Equity Partners normalization of activity. Sec- gets. This lends an upward HDFC Bank in a report released
The stock has lost more than So far, telecom and internet Vodafone Idea owes the and General Atlantic. ond, a labour market recovery thrust to growth numbers. In in Thursday.
57% in the past 12 months. To be firms were independently try- Indian government ₹53,000 attracting a wide range of Jio Platforms combines all will be key to getting the econ- the Indian case, while the shut- “Without adequate fiscal
sure, an eventual deal could ing to woo the Indian data user crore in adjusted gross reve- world-class investors, given its of Reliance’s digital and tele- omy running again. Finally, the down was in the last week of support during a recession
happen at a significant pre- base, but the Jio-Facebook nue dues. It posted losses of enormous potential to serve com initiatives, including Jio ability of all sectors of the econ- March, several restrictions had year, the damage to income
mium to the recent stock price. deal has paved ₹6,453 crore in one of the world’s largest mar- digital services, mobile and omy to restore their balance come in earlier, especially for that has already happened is
Google’s interest in Voda- the way for larger An investment in the December ketplaces,” said Mubadala, broadband, apps, tech capabil- sheets following the adverse services that would have pushed going to start working through
fone Idea comes at a time of possibilities. Voda Idea will pit quarter. Revenue according to Reuters, which ities such as artificial intelli- shock will be important. The back growth numbers further,” the multiplier, which means
financial stress on the Mumbai- While globally Google in a battle in the period rose first reported the news earlier gence, Big Data, and Internet longer the duration of the said Madan Sabnavis, chief the damage will get worse,”
based company amid cheap Microsoft, along against Facebook- 2 . 2 6 % to on Thursday. of Things, and other invest- shock, the longer recovery,” it economist at Care Ratings. former chief statistician of
mobile tariffs and strong com- with Amazon ₹11,089.4 crore, On Thursday, Mint reported ments such as in Den Net- cautioned. HDFC Bank on Thursday India Pronab Sen said.
Jio for the fastest-
petition that intensified with Web Services, thanks to 4G cus- that Microsoft Corp. is also works, Hathway Cable, and Growth projections by said stay-at-home guidelines “While there is no doubt
the entry of Reliance Jio Info- dominates the growing mobile tomer additions negotiating an investment of Datacom Ltd. economists for the March and the nationwide lockdown that India is facing a significant
comm Ltd in September 2016. on-demand cloud market and improve- as much as $2 billion in Jio The deals will take RIL quarter vary between 0.5% are likely to severely hit con- economic shock, the pace of
An investment in Vodafone computing plat- ment in average Platforms. closer to its ambition of becom- and 3.6%. That compares with sumer demand, especially for recovery, if any, will be deter-
Idea will pit the US internet forms and appli- revenue per user. If the two transactions are ing free of its net debt of ₹1.53 the 4.7% growth registered in non-essential items, which mined by the economic policy
giant in a battle against the cation programming interface Ebitda, or earnings before completed, the world’s most trillion as at the end of Decem- the preceding December account for 47% of total con- choices taken to ensure that
Facebook-Jio combine for the business, it faces a three-way interest, taxes, depreciation valuable firm, Microsoft, and ber at the group level. The quarter. The March quarter sumption expenditure. the significant secondary
world’s fastest-growing mobile fight in India, including Goo- and amortization, increased Mubadala will get a slice of Jio company aims to become net- growth number will be keenly “While demand is likely to impacts (job losses, reduced
market, according to the Finan- gle Cloud. All of these provid- marginally to ₹3,420.5 crore, Platforms, which has already debt free by March next year. watched as it includes one recover somewhat once the income levels, corporate
cial Times, which first reported ers are rapidly trying to reach while Ebitda margin fell 47 attracted investments of $10 RIL’s debt has surged in the week of lockdown, which has lockdown is lifted, it is unlikely defaults, rising NPLs (non-per-
the news earlier in the day. both the market of “new to basis points to 30.84%. Voda- billion in just a month from past few years, especially due to the potential to skew the to pick up to pre-covid levels as forming loans), rating down-
Facebook last month digital” businesses, legacy fone Idea has not announced marquee investors comprising the aggressive expansion of growth numbers. social distancing policies and grade, etc.,) can be contained,”
announced a $5.7 billion enterprises and the talent pool its March quarter earnings. Facebook Inc., KKR & Co., Sil- Reliance Jio Infocomm Ltd. “Several companies tend to uncertainty over future UBS said in a report.
 NEWS FRIDAY, 29 MAY 2020
NEW DELHI 11

LIC set to subscribe to RIL’s rights

mint

SHORT TAKES
Patanjali’s ₹250 cr NCD issue fully
subscribed within minutes
New Delhi: Baba Ramdev-led Patanjali Ayurveda’s ₹250 crore
issue, may invest ₹3,000 crore
debentures issue got fully subscribed within three minutes of
opening on Thursday. “This is historic that our maiden issue of
₹250 crore non-convertible debentures (NCD) is fully subscribed
within 3 minutes of opening of the issue. This shows the excite-
ment and faith of investors,” said Patanjali Ayurveda managing The life insurer plans to subscribe to more than 20 million or more shares of RIL in the rights issue
director Acharya Balkrishna. The Haridwar-based firm will use
this fund for working capital requirement and strengthening of
its supply chain network. “This is a reflection of trust of billions, Anirudh Laskar & The insurer, which is one of the
which has made Patanjali the most trusted brand of India and has Swaraj Singh Dhanjal largest domestic institutional
made Swadeshi Movement led by Swami Ramdev a must for MUMBAI investors, has often acted as the
strong and self-reliant India,” Balkrishna added. This is the first key indicator for many public
ever bond issue by Patanjali Ayurveda, which has become one of institutional investors in the

S
the leading companies in the FMCG segment. PTI Suryoday tate-run Life Insurance listed space. If LIC indeed invests
Small
Finance
Corp. of India (LIC), the in RIL’s rights issue, it may move
Bank raises largest institutional a number of other smaller domes-
UCO Bank slashes lending rate ₹62 crore investor in the Mukesh tic investors into putting in
from Gaja Ambani-run Reliance money in RIL’s ongoing mega
by 40 basis points to 6.9% Capital,
Industries Ltd (RIL), will invest share sale.
MINT Kotak Life,
others ₹2,500-3,000 crore in the com- The issue, which closes for sub-
bit.ly/2MiU18h
pany’s ongoing rights issue, said scription on 3 June, is the largest
two people directly aware of the such share sale the country has
life insurer’s plans. seen. The previous record was
RIL’s massive ₹53,125 crore held by Bharti Airtel Ltd and
rights issue opened for subscrip- Vodafone Idea Ltd, both of which
tion on 20 May. raised around ₹25,000 crore in
“LIC plans to subscribe to more 2019. Reliance has hired a banker
than 20 million or more shares of syndicate comprising 14 invest-
RIL in the rights issue. The pro- ment banks to manage the share
posal has been discussed inter- sale. These include including
nally and sent to LIC’s board for Morgan Stanley, Citi, Bank of
approval,” said one of the two At present, public shareholders have a 49.93% stake in RIL, of which LIC alone holds 6.01% or 3,71,805,415 shares. America and Axis Capital.
persons mentioned above, who Ahead of its rights issue, RIL’s
Kolkata: UCO Bank on Wednesday said it has reduced the did not wish to be named as the sidiary Jio Platforms Ltd, said this “LIC is likely to get the investor in RIL and it has bene- subsidiary Jio Platforms has
repo based lending rate by 40 basis points to 6.9%, reflect- internal decision was market- person. approval of its board for the rights fited thousands of policyholders already attracted investments
ing the cut announced by the Reserve Bank of India (RBI). sensitive. This is also going to be one of issue investment latest by Mon- so far. RIL is no longer just an oil- worth $10 billion in just a month
As a result, the retail and micro, small and medium enter- The insurer is con- and-gas company. It has from marquee investors includ-
prises (MSME) loans would get cheaper by 40 basis points, vinced that an invest- BETTING BIG shown tremendous ing Facebook Inc. and global pri-
the bank said. The bank did not mention any changes to the ment in RIL is likely to strength in the digital vate equity players such as KKR &
deposit rates. The government expects banks to reduce fetch an above-average LIC is convinced THE investment will LIC is likely to get the IF LIC invests in RIL’s payment and retail Co. Inc., Silver Lake, Vista Equity
lending rates, which is required to kick start the economy return for all public that an investment
in RIL is likely to
be one of the largest approval of its board
investments by the for the rights issue
rights issue, it may
attract other investors
space,” said the second Partners and General Atlantic.
hit hard by the coronavirus-forced lockdown, among other investors, including LIC, fetch an above- insurer in any firm’s investment latest by to put in money in RIL’s person, who also spoke These deals and the rights issue
factors. Since March 1, banks have sanctioned loans worth in the medium to long average return rights issue Monday share sale on condition of anonym- are aimed at helping RIL reach its
₹6 trillion. UCO Bank has sanctioned loans worth ₹15,000 term, as more than half a ity. ambitious goal of becoming a
crore, of which ₹12,000 crore has been disbursed. Over 1.36 dozen large global inves- At present, public zero net-debt company by March
lakh customers have been benefited, a senior official of the tors have recently shown strong the largest investments by the day. LIC has to keep the interest shareholders have a 49.93% stake 2021. The company had a net
bank had said recently. PTI confidence in RIL’s businesses, insurer in any company’s rights of policyholders as the foremost in RIL, of which LIC alone holds debt of ₹1.53 trillion as of 31
especially in its digital assets sub- issue so far. priority. It has been a long-term 6.01% or 3,71,805,415 shares. December.

Pradip Burman sells off Sanat

Products to Willmar Schwabe
New Delhi: Pradip Burman—part of fast-moving consumer
goods major Dabur India’s Burman family and grandson of the
company’s founder SK Burman—has sold off his over three-dec-
ade-old nutraceutical company Sanat Products to homeopathy
Govt seeks $520 mn from Cairn Oil No exit; have capital Passenger
major Willmar Schwabe India for an undisclosed amount. Bur-
man, 77, said he will now focus on building his non-for-profit PTI
for 3-4 yrs, says Oyo BLOOMBERG
abide by whatever award of the
vehicle sales
organization Mobius Foundation of which Burman is chairman.
“Ratna Commercial Enterprises, a closely held NBFC and invest-
ment company owned primarily by Pradip Burman and other
[email protected]
NEW DELHI
dispute resolution proceeding
comes out, sources said adding
the company will have to pay Tarush Bhalla employees on furlough.
to decline by
24-26% in
T
members of the Burman family, today announced that Dr. Will- he government has 30% of the $520 million [email protected] A significant part of Oyo’s
mar Schwabe India (P) Ltd, a wholly owned subsidiary of Dr. Will- slapped a $520 million demand in case the arbitration BENGALURU capital allocation has gone
mar Schwabe GmbH, Germany, has acquired RCE’s entire stake, (around ₹3,941 crore) panel upholds the DGH into the Indian, European,
FY21: Crisil
H
amounting to 100%, in its nutraceutical company, Sanat Products demand notice on billionaire demand. ospitality unicorn Oyo and South-East Asian markets
Ltd,” the company said in a statement. SUNEERA TANDON Anil Agarwal’s oil and gas unit The arbitration notice sent Hotels and Homes and strategic investments
Cairn after an audit found by Cairn triggered disputed founder Ritesh Agar- have been made in the US and
alleged discrepancies in cost resolution proceedings under wal said the company has China, Agarwal said. Now, the Malyaban Ghosh
Jet Airways receives fresh EoIs recovery in the Rajasthan oil the Production Sharing Con- more than $1 billion in cash, company aims to invest heav- [email protected]
and gas fields operated by the tract (PSC). A three-member which is enough to run its ily in the staycation and long-
from 11 investors ahead of deadline company, people familiar with arbitration panel, comprising business for at least three stay category.
NEW DELHI

I
Mumbai: Beleaguered airline Jet Airways has received expres- the matter said adding the firm An audit found alleged a nominee each of Cairn and more years without raising The hospitality unicorn, ndia’s automobile industry
sions of interest (EoIs) from 11 investors, including UK-based has disputed the demand and discrepancies in cost recovery the government and a neutral capital and clari- which banks is headed for another year of
Kalrock Capital, Hyderabad-based Turbo Aviation, Alpha Air- initiated arbitration proceed- in the Rajasthan oil and gas judge, will be set up to adjudi- fied that the com- The hospitality heavily on hotel double-digit sales decline
ways, and Canadian citizen Siva Rasiah. The deadline for sub- ings. fields operated by Cairn Oil. cate on the dispute. pany does not unicorn, which stays and vaca- this fiscal, given the extended
mitting EoIs was reported to end on Thursday. This is the fourth The Directorate General of Cairn and ONGC are already plan to exit any of has a footprint in tion homes, saw lockdowns and sharp fall in
attempt by the airline’s resolution professional to find a suitor Hydrocarbons (DGH), the nues earned from the sale of oil in a dispute over payment of its markets at 80 countries, has its revenue drop customer affordability in an
for reviving the ailing company. Previously, South American upstream technical arm of the and gas before sharing a fixed royalty from the block. Cairn present, despite by more than economy forecast to contract
of late been
conglomerate Synergy Group and New Delhi-based Prudent ministry of petroleum and nat- percentage of profit with the had stopped paying for its the collapse in 60% from March. due to the coronavirus out-
ARC were given time to submit a resolution plan, but failed to ural gas, sought $520 million government. Booking a higher share of royalty on oil pro- the hotel busi- cutting costs to However, the break.
meet the deadline. Earlier this month, fresh expressions of in additional profit petroleum expenditure curtails govern- duced from its Rajasthan block ness globally fol- conserve cash company said it Overall sales volume are
interest for the airline were invited and the deadline for submis- for the government after an ment’s profit share. following differences with lowing the coro- is seeing some expected to fall to multi-year
sion was set for 28 May. GOPIKA GOPAKUMAR audit of capital and operating Cairn Oil and Gas, a vertical partner ONGC on cost recov- navirus outbreak. recovery in lows, with sales of passenger
expenses incurred on the of Agarwal-controlled ery. “We have the necessary China and some European vehicles and commercial vehi-
Mangala and other oilfields in Vedanta Ltd, earlier this As much as $400 million of capital runway beyond 3-4 countries, which have started cles reaching fiscal 2010 levels,
BSE to halt scheme to enhance the Rajasthan block month sent an arbitration royalty dues since July 2017 years, considering the cost reopening their economies Crisil Research said on Thurs-
RJ-ON-90/1, people with notice, disputing the demand, have not been paid to ONGC, restructuring and the mini- after flattening the curve of day.
equities’ liquidity from 11 June direct knowledge of the devel- they said. the people said. mal revenue estimates that we transmissions. Sales of tractors and motor-
MINT
opment said. A company spokesperson ONGC is the licensee of the expect. We do not anticipate Oyo was registering occu- cycles would recover faster
The audit alleged discrep- declined to comment. Barmer block in Rajasthan, raising any more capital,” pancy rates of 60-65% in than other segments due to
ancies in the way capital Cairn is the operator of home to India’s biggest onland Agarwal said. China before the coronavirus their exposure to the rural
expenses made on setting up Rajasthan block with 70% oil discovery to date, and is Oyo, which has a footprint outbreak. However, the figure markets where demand is
the infrastructure to produce interest while the balance is responsible for payment of in 80 countries, has of late in the country, its second-big- expected to recover faster than
oil were booked. held by state-owned Oil and royalty at the rate of 20% of the been cutting costs to conserve gest market after India, the urban markets, the
The law provides for opera- Natural Gas Corp (ONGC). oil price on the entire output cash. Towards this end, the dipped to below 20% during research arm of rating agency
tors recovering all the capital ONGC is not a part of the from the field irrespective of company cut thousands of the crisis and is now at about Crisil said in a note.
and operating cost from reve- arbitration but will have to its stake. jobs, reduced salaries, and put 50%. Domestic passenger vehicle
sales are expected to fall
24-26% this fiscal year. Com-
mercial vehicle sales are also
expected to decline 26-28%
this year, it said.
New Delhi: Leading stock exchange BSE has said it will
discontinue liquidity enhancement scheme (LES) for
equity derivatives segment from June 11. The exchange had
Govt makes onshore management of offshore funds easier Passenger vehicle sales in
India had fallen 18% last fiscal
with commercial vehicle sales
introduced LES in equity derivative segment in August falling 29%.
2019. The scheme was provided on index futures and Jayshree P Upadhyay expected to open the flood- Business, an equity fund by According to Hetal Gandhi,
options and 50 stock futures and options. “The exchange [email protected] gates and prompt more Indian Avendus Capital, and White director, Crisil Research, auto-
shall discontinue the LES...with effect from June 11, 2020,” MUMBAI fund managers located outside Oak Capital Management, a mobile sales are running out of
BSE said in a circular. Under the LES, brokers and other the country to return. How- boutique firm from Mauritius. steam as the pandemic has

T
market intermediaries are given incentives for a specified he finance ministry on ever, there was lack of clarity “These thresholds further severely impacted urban
period of time to bring in and generate investor interest in Wednesday amended on how much the Indian fund refine the 9A rules and make income sentiments.
securities that have limited trading activity. the income tax rules manager’s remuneration or onshore management of for- “We assessed 26,000 com-
making it easier for offshore fee should be to be eligible for eign funds easier for local asset panies that have a total
funds to relocate fund man- section 9A relaxation, prompt- managers like us. This avoids employee cost of ₹7 lakh crore.
Monsoon rains to arrive on India’s agement to India. ing the bulk of fund managers any adverse tax implications It indicates that over 60% of
Section 9A of the Income- not to opt for this route. on the fund or FPI for the for- this cost resides in companies
southern coast around 1 June Tax Act provides a special tax- The Central Board of Direct eign assets being managed that are expected to see a sharp
New Delhi: Monsoon rains are likely to enter India through the ation regime for offshore Taxes then floated draft norms from Mumbai. Now at least reduction in revenue growth,
southern coast around June 1, the state-run weather office said funds if their fund managers in December 2019 to clarify The clarifications are expected to boost flows in India as fund there is clarity at what level of and where employees are a
on Thursday, marking the start of the four-month rainy season are located in India. This was the rules on remuneration or managers will be closer to the deal ecosystem. MINT management fee can a Cat 2 meaningful cost head. This is
that is crucial for the country’s farm-dependent economy. done to ensure that more fund management fee. The minis- offshore fund or any mandate expected to lead to higher risk
Weather conditions are “very likely to become favourable from management is done in India try said on 27 May that for a 9A 0.1% of the AUM. For category As of today there are asset from Cat 1 FPIs be managed of job losses or pay cuts,”
1 June, 2020” for the monsoon onset over the southern state of without adverse tax implica- special dispensation foreign 2 FPIs, typically hedge funds, managers whose plans to shift with an Indian fund manager added Gandhi.
Kerala, the India Meteorological Department (IMD) said in a tions. The section was first portfolio investor (FPI) cate- the fund management fees has fund management to India was under section 9A without any Besides the drop in afforda-
statement. The IMD had earlier forecast the arrival of monsoon introduced in April 2016. It gory 1, which includes sover- to 0.3% of AUM or at least 50% in limbo because of this lack of risk of impacting the safe har- bility of buyers, the rapid
rains over Kerala on 5 June, four days later than usual. Nearly then said that only a fund man- eign wealth funds and pension of the total management fee. clarification. These include bour provisions that this very spread of covid-19 in metros
half of India’s farmland, without any irrigation cover, depends ager’s income or management funds, the amount of remuner- These new clarifications are Eastspring India Fixed Income policy enables,” said a spokes- and tier one cities will also
on annual June-September rains to grow crops such as rice, fee, and not the entire global ation or management fee paid expected to boost flows in and Balanced funds from person for ICICI. Avendus impact demand in the urban
corn, cane, cotton and soybeans. The IMD said last month India income of the global fund, will by the fund to the Indian fund India as fund managers will be Japan and Taiwan advised by could not comment immedi- markets where most of the
is likely to get average monsoon rains this year. REUTERS be subject to tax. This was manager needs to be at least closer to the deal ecosystem. ICICI Prudential International ately. passenger vehicles are sold.
12 FRIDAY, 29 MAY 2020
NEW DELHI VIEWS

OUR VIEW MY VIEW | TECH WHISPERS

SANCHIT KHANNA/HT

The Great Decentralization

that coronavirus has heralded
We have already had intimations of this phenomenon in the migration of workers back to villages

and congregated in a few large cities. come to save the day under our Great
Covid has reversed the equation, and Lockdown. This is not necessarily true
many of those trudging home are in India, where haphazard regulations
swearing never to come back. What this and controls did not allow it to happen.
means for industry is profound. They But globally, it was food-delivery and
will have to spread themselves out, or e-commerce companies that kept cities
decentralize, so as to get the labour and and homes running while every mall,
talent needed for their operations. They restaurant and departmental store was
might have to go to the people, as the closed in fear of contamination. Ama-
JASPREET BINDRA people might not come to them. zon, for example, added 100,000
is the author of ‘The Tech Whisperer’, and Change the collar’s colour to white, employees in the US, and has declared it
co-founder of Unqbe and you see the same phenomenon will add 50,000 in India now. The
playing out. Work has got decentral- decentralized gig economy of e-com-

Some of our taxpayers

ized. Work from home and anywhere merce, food-tech and freelance work
has suddenly become the corporate survived the disruption far better than
response to this disruption, one that the centralized “old economy”.

T
echnology experts and adminis- millions of employees, primarily in In the Indian context, the same could
trators have always known that knowledge companies like technology be said of retail, and how kirana or

need their money back decentralized systems, while

sometimes more unwieldy and expen-
sive to manage, are far more resilient
and resistant to disasters and disrup-
and services, have embraced. Our great
centralized offices are barren. What is
interesting is that large and small firms
(Google, Twitter, TCS, Udemy) have
mom-and-pop grocery stores came to
the rescue. Armed with basic but func-
tional technology like WhatsApp-or-
dering and UPI payments, they played
tions. Redundancy is an inbuilt feature declared that they will continue a large saviours, even as big malls and e-com-
in these systems—cloud operations, for element of work from home even after merce ground to a halt. This super-de-
Our crisis of urban unemployment has hit the formal sector, which has been shedding jobs, example, are always distributed across the current lockdowns are lifted. They centralized retail model has become the
multiple locations, rather than being have discovered hitherto unknown cynosure of all eyes, and is attracting
and now seems set to worsen. We need a tax credit scheme as a safety net for India’s better-off centered in one. advantages of this—cost reduction, a massive investment, as companies look
As the covid pandemic rages on, flat- productivity spike, and talent diversifi- upon technology to enhance their
tening and disrupting entire industries cation. The interview question, “Will decentralized infrastructure. The Face-
and societies in its wake, companies and you be willing to relocate to where we book-Jio deal is a case in point.

A
crisis of formal sector unem- government ought to consider special meas- countries are scrambling to figure out a are?” suddenly looks passé`. This Great Decentralization that
ployment in urban India seems ures to allay the pain. Granted that openly way forward. Not only is it about recov- The same is true of how the gig econ- covid has wrought will extend itself to
ering quickly from the onslaught, there omy, which is nothing but decentral- other sectors too. I can see how decen-
set to sharpen over the months offering handouts to India’s better-off at a is a great deal of thinking on how and ized work taken to a logical extreme, has tralized models can help disparate and
ahead. According to a tracker time of mass distress among the poor may not what kind of organizational and opera- distraught sectors like hospitality, res-
run by the Centre for Monitoring be politically feasible. Those who earn above tional design can make them more resil- taurants, events, education, healthcare
Indian Economy (CMIE) that ₹5 lakh per annum, enough to be liable for ient. In this context, organizations will and even manufacturing. I will detail
offers a daily average of the past 30 days’ num- income tax, have long had to make do without need to borrow a leaf out of the IT play- QUICK READ these one by one in my next few dis-
book, and make themselves more patches of Tech Whispers in Mint.
bers for trend analysis, the country saw overall unemployment benefits. Socially, they were decentralized. Migrants returning to villages Taking a philosophical view, this was
joblessness spike in cities after the lockdown expected to either rely on family support or We have already seen the beginning offer us the most tragic example a long time coming. In many ways, the
began. Since then, job deprivation has weighed find new jobs. Under the circumstances that of this phenomenon in several ways. of the Great Decentralization pandemic and the ensuing lockdowns
upon every fourth urban-dweller, by CMIE prevail today, however, neither can fully be Perhaps the most tragic and in-our-face that’s underway. Work and have taken us back to the way human
data, and this high rate of joblessness seems to counted upon. An uncontroversial way to example is the Great Migration. In resources will no longer be beings lived and worked earlier: spread
scenes reminiscent of the 1947 Parti- concentrated in a few large cities. out, peer-to-peer, local (and vocal). If
have risen slightly over May. This month’s offer taxpayers who have been laid off a life- tion, millions of people, generally poor successful, the model could generate
stability, however, might be masking worse to line would be to offer them tax credits. This day-labourers, are walking Indian high- Organizations may need to more employment, make our cities
come. It is, after all, a rolling-average, designed would serve as a badly-needed social security ways to get home. Our big cities had reach far and wide for labour more livable, and clean up the air. It is
to smoothen volatility. Also, a recent surge of net for formal-sector employees. attracted them from far-flung villages rather than expect employees ironic that it took a pandemic to make
provident fund (PF) withdrawals would point The income tax department should give tax- with the economic opportunities they to show up. Decentralized us realize this, but that is how it has
offered. This was the Big Centralization, operations are the way ahead always happened in history, and how it
to rising job losses among better-off Indians payers who have lost their jobs the entire sum as millions of people left their villages for almost every business now. will now happen again.
working in the organized sector. Of the 2.84 of taxes they paid in 2019-20, regardless of
million subscribers of India’s state-run PF their tax bracket, as a zero-interest loan to be
scheme who have withdrawn their funds so far repaid in five annual instalments after they
this fiscal year, only about half availed of the regain employment, whenever that might be.
Centre’s covid-relief scheme allowing job Such a scheme would not only be justifiable
holders to dip into their savings. The rest, we from an equity perspective, since it was origi-
can safely assume, needed to tide over lost nally their money, it would also address the pet www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Chandigarh*, Pune* Saturday, May 29, 2010 Vol.4 No.127 Rs. 3.00
++20
20PAGES
PAGES LOUNGE
LOUNGE + 412 PAGES
12 PAGES
PAGES MARKETS
MARKETS WATCH

Tata Global Beverages

sources of income. The proportion of non- peeve of India’s taxpayers that they get soaked
Q&A:
CEO on building the brand >4
CORPORATE: Unitech net falls 43.64% in
FY10, sales rise marginally >11

covid withdrawals was far higher in May than by the State without much in return. The SENSEX 16,863.06 Æ 196.66
EXCLUSIVE PARTNER

NIFTY 5,066.55 Æ 63.45 DOLLAR Rs46.35 æ Re0.95

RAPID FIRE: E&Y’s Prashant Singhal on
impact of 3G licence fees on tariffs >10
EURO Rs57.08 æ Re0.85 GOLD Rs18,400 æ Rs170 OIL $75.32 Æ $2.31 When one door closes,
April. The PF scheme has about 60 million par- advantage of this over other giveaways is that FIRST EVER HARDENS STAND

ticipants, most of whom have not touched their the support provided would be proportionate
Saturday Reading
Awareness is the first challenge that the unique identity
programme, or Aadhaar, has encountered at the
grass-roots level. While it will encounter more challenges,
this is something the Unique Identification Authority of
India, which oversees Aadhaar, needs to address quickly
as it increases the scale and scope of its effort. >P3
StanChart Air
IDR issue
India excludes
two unions from talks
B Y P .R . S ANJAI
[email protected]
·························
tiations.
“We are not taking decisions
to pull them back next day. We
another opens; but we
often look so long and
PHOTO ESSAY MUMBAI
are firm in our stand and we

sailsthrough I
n an indication that it will have given all necessary pow-
stand by its Thursday deci- ers to Air India to handle the

retirement egg, but still, with our economy to the recipient’s former earnings. It would
sion to derecognize two labour situation,” said a senior official
unions, National Aviation Co. at ministry of civil aviation on
of India Ltd, or Nacil, which condition of anonymity.
operates Air India, will meet In an SMS response, Jadhav
all its labour unions on 1 June, said he would have to stick to
Institutional investors TEPID RESPONSE except the All India Air Engi- his decision.
bid for more than twice neers Association(AIAEA) and
Air Corporation Employees
However, AIAEA’s Raju said
his union members are also

so regretfully upon
the number of shares, THE NEWS Union (ACEU), said two senior standing firm. “We are now
The first ever IDR issue was

expected to shrink by about 5% this year and

while retail subscribe to

also be easy to implement, as losers of formal

On Russell Street in Kolkata, the charm of the city’s old- executives at the airline. Air holding emergency general
world auction houses is slowly giving way to the brutal oversubscribed twice, but retail India has a total of 13 unions, body (meetings) across the re-
reality of their endangered existence. Yet, not all is lost.
less than half the IDRs investors' response was muted. including AIAEA and ACEU, gions,” he said.
There is hope in a steadfast breed of connoisseurs. >P6-7 THE BACKGROUND which have been derecog- In the midst of the stand-off,
B Y N . S UNDARESHA Volatile markets over the past nized. though, there was relief for fli-
S UBRAMANIAN & couple of weeks, tax issues and The executives said Air India ers as the airline resumed nor-
A NIRUDH L ASKAR novelty of the instrument have put chairman and managing direc- mal schedule of operations
························· off small investors. tor Arvind Jadhav is firm in his across the entire network with
MUMBAI
decision to crack down against total passenger bookings on

T
the layoffs this could result in, we should jobs can be identified by a halt in their PF con-
he first-ever issue of In- THE IMPLICATION striking employees. the domestic flights crossing

the closed door that

dian depository receipts The listing price of IDR will depend The airline will also likely 32,000.
(IDRs) went down to the on the prevailing market conditions stick to its decision of dismiss- “The daily average passen-
wire, with a late rush by insti- two weeks from now and may not ing 58 executives and suspend- ger carriage for May 2010
tutional investors to bid for the be completely linked to its ing another 26, all of who went stands at 29,070, up from an
receipts helping Standard issue price. on a flash strike on 26 May, re- average of 24,350 in May
LEADING THE NEWS COLUMNS Chartered Plc see the issue sulting in the cancellation of 2009,” Air India said in a state-
Shares of healthcare com- The silly season through despite a lukewarm 138 flights and revenue loss of ment.
panies Fortis and Apollo of May was
? response from retail investors. sue, thus making it unattrac- at least Rs10 crore. But the deteriorating indus-

expect millions of more PF applicants. tributions and taxes deducted at source. The
moved in opposite direc- unusual this year, Institutional investors bid tive for them to enter the bid- AIAEA general secretary Y.V. trial relations will only slow
tions after the announce- not just in terms for more than twice the num- ding game early and locking in Raju on Thursday had served a down the turnaround exercise
ment of annual and quar- of temperature, ber of shares on offer while re- their funds for a few extra days. fresh notice to Air India, saying underway at the ailing flag car-

we do not see the one

terly results. Fortis shares what with a tail investors subscribed to less Retail investors stayed away 700 union members would rier, said civil aviation experts.
fell 1.6% while those of surfeit of an- than half the IDRs reserved for despite the fact that the IDRs strike work starting 12 June to Air India currently has out-
Apollo rose 0.32%. >P3 nouncements, them. offered them a rare opportuni- demand withdrawal of the standing debt of Rs16,000
*** says R. Sukumar. >P5 The late arrival of institu- ty to diversify their portfolio by derecognition order as well as crore and is running a monthly
Glenmark Pharmaceuticals, *** tional investors was anticipat- owning a British bank that reinstatement of the sacked cash deficit of Rs400 crore.
driven mainly by robust Manas Chakravarty looks at ed since the Indian stock mar- does most of its business in employees. Experts are also divided on

As the name suggests, a provident fund is fiscal cost of this exercise is unlikely to be high,
growth in sales in India a study that says about half ket regulator had mandated emerging markets. ACEU’s general secretary Jadhav’s unprecedented
and the US markets, moved of China’s current account earlier this month that institu- “The retail participation was J.B. Kadian had served another moves as he must salvage an
from being a loss-making surplus and the US current tional investors have to make low mainly because it was a notice nearly two weeks ago airline that had cumulative
company a year earlier and account deficit can be ex- upfront payments for their en- for industrial action starting 31
posted profits in the last plained by the unbalanced tire bid amount in a public is- TURN TO BACK PAGE ® May, demanding wage renego- TURN TO BACK PAGE ®

which has opened for us.

quarter of 2009-10. >P3 Chinese sex ratio. >P10
LEISURE
INDICATOR Based on
R-Power gets INTERNAL THREAT

meant for a financial emergency. For many, it and since a mechanism already exists for tax
Q4 CORPORATE RESULTS AGGREGATE
AS OF 28 MAY NET SALES the Gulf
2,710 Rs8,31,488.11cr

26.03%
War-era
video game,
Prince of
433MW from 73 dead as Maoists sabotage
AGGREGATE
R-Infra for
tracks, train derails in WB
NET PROFIT Persia: The
Rs84,060.34cr Sands of Time has some
0 4,170
TOTAL COMPANIES 4,170
13.87%
whiplash camerawork and
dumb-fun appeal. Rs1,095 crore INDRANIL BHOUMIK/MINT
B Y R OMITA D ATTA

is not sufficient to serve its primary purpose of refunds and delayed payments, cash transfers
B Y A VEEK D ATTA & [email protected]
B HUMA S HRIVASTAVA ·························
························· JHARGRAM, WEST BENGAL

QUICK EDIT KOLKATA/MUMBAI

T he Reliance-Anil Dhirub- M aoist insurgents were

blamed for a train acci-

Early warning failure hai Ambani Group (R-

Adag) has consolidated its en-
tire power generation business
dent in West Bengal that killed
73 people and injured at least
250. The death toll is expected

F
A L E X A N D E R G R A HA M B E L L
riday’s attack by Maoists of Bengal are especially under one roof. to rise.

seeing a person past superannuation. In the can be made swiftly, too. It’s the least the Cen-
on a train, forcing its vulnerable. Reliance Infrastructure Ltd The engine and 13 coaches
derailment, and collision with Having failed to prevent the (R-Infra) has transferred of the Mumbai-bound How-
a goods train was the ninth attack—all the signs pointed 433MW of gas-based power rah-Kurla Jnaneswari Express
attack by the Reds this year that a big one was coming— generation assets to group jumped tracks and hit a goods
and the fourth on trains in the government’s response company Reliance Power Ltd train coming from the opposite
the past 10 days. has been to say no trains will (R-Power) for Rs1,095 crore. direction at around 1.30am on
Account for the Rajdhani run during the night in areas At one stroke, this deal Friday.
Express incident where one infested with Maoists. That makes R-Power a company Chief minister Buddhadeb
Fatal run: Rescue workers and police gather at the scene of the Mumbai-

current instance, it was a State action—

of India’s most prestigious kind of disruption is just with an operating income and Bhattacharjee said Maoist

tre can do. People deprived of tax-paying levels

trains was hijacked by Maoists what the insurgents would positions R-Infra as a focused rebels were behind the acci- bound Howrah-Kurla Jnaneswari Express train crash in West Bengal.
earlier this year and the fact have wanted. utilities firm. R-Infra holds dent, which took place in the
that most attacks against The government can 45% equity stake in R-Power Jhargram area of West Bengal’s The accident took place a West Midnapore’s district
trains have been in West continue to debate the best and is its largest shareholder. West Midnapore district, a few kilometres from the Sardi- magistrate N.S. Nigam said.
Bengal’s West Midnapore way to tackle Maoists, but Post Friday’s announce- stronghold of the insurgents. ya station, where the Maoists Many among the 250 people
district, and two conclusions its best-laid plans will go ment, R-Power—at 35,000MW, Some 100 clips that fasten had in October laid siege to a hurt were battling life-threat-
emerge: one, that Maoists nowhere if it is not able has the largest development railway tracks with concrete Bhubaneswar-New Delhi Rajd- ening injuries in hospitals in
like to target trains; two, that to prevent attacks it can portfolio in the power sector, sleepers were found missing at hani Express for some eight Kolkata and Kharagpur, the

namely, the lockdown—that has led to corpo- of income may not need outright doles, but
trains plying through this part see coming. but wasn’t producing a single the accident site. The Maoists hours to enforce a strike. district headquarters.
had removed them, the state The death toll in Friday’s ac-
Mint is also available for Rs5.50 with Hindustan Times under a combo offer TURN TO BACK PAGE ® government said. cident could approach 100, TURN TO BACK PAGE ®

rate retrenchments. This being the case, the they do need money to fall back on.

THEIR VIEW

China is likely to harm itself with its bullying tactics

China’s neighbours and around the world. While the world grapples with covid-19, Whereas Japan readily allowed the Inter- to the potential threats stemming from
BRAHMA CHELLANEY Had Xi been wise, China would have the Chinese military has provoked border national Atomic Energy Agency to conduct China’s grip on many global supply chains,
sought to repair the pandemic-inflicted flare-ups with India and attempted to police a full investigation into the 2011 Fukushima and moves are already afoot to loosen that
damage to its image by showing empathy the waters off the Japanese-controlled Sen- nuclear disaster—a probe that helped the control.
and compassion, such as by granting debt kaku Islands. China has also recently estab- country to improve safety governance— In the past, China’s reliance on persuasion
relief to near-bankrupt Belt and Road Initia- lished two new administrative districts in China strongly opposed any coronavirus secured its admission to international insti-

T
he global backlash against China over tive partner countries and providing medi- the South China Sea, and stepped up its inquiry, as if it had something to hide. In fact, tutions and helped to power its economic
its culpability for the international cal aid to poorer countries without seeking incursions and other activities in the area. In some Chinese commentators denounced rise. But under Xi, spreading disinformation,
spread of the deadly coronavirus from their support for its handling of the out- early April, for example, a Chinese coast calls for an inquiry as “racist”. exercising economic leverage, flexing mili-
Wuhan has gained momentum in recent break. Instead, China has acted in ways that guard ship rammed and sank a Vietnamese But once a resolution calling for an tary muscle, and running targeted influence
weeks. And China itself has added fuel to the undermine its long-term interests. fishing boat, prompting the United States to “impartial, independent and comprehensive operations have become China’s favourite
fire, as exemplified by its recent legal crack- Whether through its aggressive “Wolf caution China to “stop exploiting the [pan- evaluation” of the global response to cov- tools for getting its way. Diplomacy serves as
down on Hong Kong. From implicitly seek- Warrior” diplomacy—named after two Chi- demic-related] distraction or vulnerability id-19 gained the support of more than 100 an adjunct of the Chinese Communist
ing a political quid pro quo for supplying nese films in which special-operations for- of other states to expand countries in the World Party’s propaganda apparatus.
other countries with protective medical ces rout US-led mercenaries—or military- its unlawful claims in the Health Organization, Xi Xi’s approach is alienating other coun-
is professor of strategic studies gear, to rejecting calls for an independent backed expansionist moves in China’s South China Sea.” QUICK READ sought to save face by tries, in the process jeopardizing their appe-
at the New Delhi-based Centre international inquiry into the virus’s origins neighbourhood, Xi’s regime has caused Meanwhile, China has [saying] that “China sup- tite for Chinese-made goods, scaring away
for Policy Research until a majority of countries backed such a international alarm. In fact, Xi, a self-styled made good on its threat Its brazen defiance of global ports the idea of a com- investors, and accentuating China’s image
probe, the bullying tactics of President Xi indispensable leader, views the current of economic reprisals opinion on the need for a prehensive review”. problem. China currently faces the most
Jinping’s government have damaged and global crisis as an opportunity to tighten his against Australia for initi- coronavirus probe, crackdown Make no mistake: The daunting international environment since it
isolated China’s communist regime. grip on power and advance his neo-imperi- ating the idea of an inter- in Hong Kong and aggression world will not be the began opening up in the late 1970s, and now
The backlash could take the form of West- alist agenda, recently telling a Chinese uni- national coronavirus with other countries are fast same after this wartime- it risks suffering lasting damage to its image
ern sanctions as President Xi’s regime seeks versity audience that, “The great steps in his- inquiry. Through trade alienating the rest of the world. like crisis. Future histori- and interests. A pandemic that originated in
to overturn Hong Kong’s “one country, two tory were all taken after major disasters.” actions, the Chinese gov- ans will regard the pan- China will likely end up weakening the
systems” framework with its proposed new After buying up much of the world’s avail- ernment has effectively The pandemic will lead to a demic as a turning point country’s global position and hamstringing
national-security laws for the territory, able supply of protective medical equipment cut off imports of Austra- reshaping of global politics and that helped to reshape its future growth. In this sense, the hollow-
which has been wracked by widespread pro- in January, it has engaged in price-gouging lian barley and blocked supply chains, weakening China’s global politics and ing out of Hong Kong’s autonomy in the
democracy protests for well over a year now. and apparent profiteering. And Chinese more than one-third of image and growth. Its actions restructure production shadow of covid-19 could prove to be the
More broadly,the Chinese president’s over- exports of substandard or defective medical Australia’s regular beef could yet be the last straw that networks. The crisis has proverbial straw that breaks the Chinese
reach is inviting increasing hostility among gear have added to the international anger. exports to China. breaks the Chinese camel’s back. made the world wake up camel’s back. ©2020/PROJECT SYNDICATE
 VIEWS FRIDAY, 29 MAY 2020
NEW DELHI 13

THEIR VIEW M I N T C U R AT O R

The question of whether India’s

economic stimulus is adequate
Supply-side measures could be just as effective in boosting consumer demand as direct fiscal expenditure might have been

MINT Martin Scorsese’s film will star Leonardo DiCaprio and Robert De Niro. REUTERS

Apple secures a deal for Scorsese’s next movie

A pple Inc has secured a deal for Hollywood veteran Martin Scorsese’s next film,
Killers Of The Flower Moon, US media reported on Wednesday, citing sources.
Killers of the Flower Moon will star Leonardo DiCaprio and Robert De Niro. It is the
second major film that Apple has acquired after Greyhound, starring Tom Hanks,
last year. The film will be labeled an Apple Original Film, and ViacomCBS Inc’s Par-
amount Pictures will distribute it theatrically worldwide, according to reports from
INDIRA RAJARAMAN the Wall Street Journal and Deadline. Apple beat rivals such as Netflix Inc that were
is an economist also interested to produce the film, the WSJ reported... Killers Of The Flower Moon
is an adaptation of the non-fiction book of the same name, by David Grann. The
book is based on an FBI investigation into the killings of Native American Osages
during the 1920s.
Reuters

SpaceX launch could have been catastrophic

T
he Union government has been
accused of excessive fiscal conserva-
tism by critics who see the fiscal stimu-
lus as not boosting consumer demand
N ASA has revealed that the SpaceX launch ‘could have triggered lightning’ if
it went ahead last night. The space giants were forced to cancel the historic
launch to the International Space Station due to poor weather conditions around
sufficiently. That charge has to be the Kennedy Space Centre in Florida. Now, Jim Bridenstine, NASA administrator,
assessed separately from the slow has revealed that the launch could have been catastrophic had it gone ahead. He
response to the desperate exodus of migrant said: “I know there’s a lot of disappointment today. The weather got us. There was
workers from urban India. If the Shramik trains a concern that if we did launch, it could actually trigger lightning. We made the
had been started two months earlier, during the right decision.” While the initial launch countdown went according to plan last
first lockdown, disease transmission would have night, launch officials warned SpaceX Launch Director Mike Taylor that the
been more effectively contained. Today, there are weather just wasn’t good enough for launch to go ahead.
estimates that one in four Shramik passengers is Daily Mirror, UK
testing covid positive (I hope they are wrong). Two
months ago, it would have been close to zero. If
only the process had begun in March. Of human bondage and the sex work recession
The fiscal conservatism charge arises because
out of the ₹20.97 trillion aggregated across the
Garib Kalyan package on 26 March and the five
daily tranches announced over 13-17 May, the
T he bondage chairs and polished metal whipping tools sit gathering dust on a
quiet street near London’s trendy Shoreditch neighbourhood—and Madame
Caramel is not pleased. The coronavirus lockdown has punished the London domi-
direct fiscal expenditure adds up to ₹2.14 trillion (a natrix, whose Hoxton Dungeon Suite has stood silent for weeks. “In regards to the
low estimate; it might be a touch more). I am stay- dungeon, completely stopped, zero percent, no income whatsoever, and in regards
ing with absolutes for now, because the gross to Madame Caramel as a professional dominatrix it is exactly the same,” said the
domestic product (GDP) denominator will have to ments. In any case, the free grain would not have a better way for an immediate supply-side impact. red-haired self-proclaimed “femme domme”. “The one-to-one... is gone, just the
be settled (more on that below). helped pay the rent falling due at the end of Remember that we are clinging desperately to the online stays,” she told AFP. In Europe’s red-light capital Amsterdam, sex work is
The Garib Kalyan package carried the highest March. Many single migrants would in the nor- supply resilience of agriculture to reduce the nega- due to officially resume in September. Prostitution in the Netherlands is legal and
“fiscal content”, with two avenues of cash transfer mal course have returned home by bus or train at tive impact of the lockdown on GDP this year. In regulated, which allows for more support and structure during the coronavirus
and one in kind. There was ₹1,500 over three this time of the year. All of them, families and sin- the whole commendable effort of Garib Kalyan to lockdown. But many sex workers... are now moving online to make ends meet.
months to 204 million women holding Jan Dhan gle, were given no alternative but to begin a long shore up farmer incomes and enable rabi-harvest- AFP
bank accounts; and an upfront transfer of ₹1,000 to walk home. The later waves of the exodus taking ing and kharif-sowing, there was a lamentable lack
30 million recipients of old age, widow and disabil- place now are of better skilled labourers, who of attention to the marketing problem. The focus
ity pensions. There was also a front-loading (not an were able to tide over March rent, but could not was on grain procurement, with no thought to pro- Meet the bomb-maker who turned peacemaker
additionality) of the first instalment (₹2,000) due hold out much longer. ducers of vegetables and other perishables. It was
to 87 million farmers under the PM Kisan Yojana.
The last, in particular, played a key role in ensuring
completion of the rabi harvest followed by buoyant
Back to the adequacy of the fis-
cal stimulus. It is wrong to imag-
ine that direct fiscal expenditure
only state governments that
could have arranged for the
trucking of those vegetables to
I am an expert bomb maker. I can make bombs in just five minutes.” Ali Fauzi was
a key member of Jemaah Islamiyah, a militant group with links to al-Qaeda, which
was responsible for Indonesia’s worst attack—the 2002 Bali bombing that killed
QUICK READ
kharif sowing, both of which will help stem the fall is better at boosting consumer consumption centres and man- more than 200 people. “My brothers carried out the Bali bombing. It was huge
in GDP growth this year. demand than supply-side restora- One cannot argue that the fiscal aged the elaborate links in that bomb in the heart of the island’s tourist district.” The group went on to carry out
In kind, there was the free matching additional- tion through credit flows of ₹3 stimulus won’t boost demand process. a string of bombings in Indonesia... The seemingly sleepy village of Tenggulun in
ity to foodgrain entitlements under the public dis- trillion, collateral-free and guar- because not enough direct An earmarked transfer to Lamongan, East Java was the group’s base camp. Now Ali Fauzi’s mission is very
tribution system (PDS), with a small supplement of anteed, for medium, small and expenditure was announced. states just to enable marketing different. He works to help former jihadis leave a life of violence and to stop new
free pulses, benefiting 800 million individuals, micro enterprises, which carry no Supply-side measures can also operations for perishable crops recruits from joining the next wave of militant groups in South East Asia.
also for three months; and the free cooking gas immediate fiscal outlay, but could do that job effectively. would have prevented the BBC
under the Ujwala scheme, benefiting 83 million later on. Both types of stimulus present unfolding disaster, of
households. generate incomes from which From a budgetary point of farmers dumping their crops,
Garib Kalyan also raised the daily wage under consumer demand will flow. view, the combined deficit of the even as high prices reign in Is China’s anthem sacrosanct in Hong Kong too?
the Mahatma Gandhi National Rural Employment The second criticism has Centre and states could add up urban vegetable markets.
Guarantee Act (MNREGA) to a little over ₹200 per
day, with a potential reach to roughly 136 million
job-card holding households. The corresponding
been the absence of adequate
fiscal assistance to states. Here
again, states have been dealt a
to 10% of GDP. Anything more Finally, on the GDP denomi-
than that may not be advisable at nator for converting the fiscal
this juncture. stimulus to a percentage figure.
T hree pro-democracy lawmakers were ejected from Hong Kong’s legislative
chamber Thursday morning, disrupting the second day of debate on a conten-
tious bill that would criminalise insulting or abusing the Chinese national anthem.
enhancement of the budgetary provision for somewhat better hand than We continue to use ₹2 trillion as This comes as China’s National People’s Congress (NPC) has approved a controver-
MNREGA by ₹40,000 crore was announced in the alleged. State disaster relief funding has been a marker of 1% of GDP, which optimistically sial national security law for Hong Kong, bypassing Hong Kong’s internal legisla-
fifth tranche on 17 May. These transfer provisions front-loaded, and tax devolution payments have assumes inflation will raise nominal GDP in ture to punish acts seen as endangering national security and subverting state
were non-trivial in depth and coverage. been generously paid as per budget estimates of 2020-21 to rough equivalence with that last year. power in the semi-autonomous Chinese territory. The NPC is a largely ceremonial
There was, however, a clear rural tilt to the revenue (which will, of course, be adjusted down By this measure, the additional borrowing inten- body in the one-party state... The president of Hong Kong’s legislature, Andrew
Garib Kalyan provisions. Although there are to actual receipts before the year closes). States tion declared by the Union government, to reach a Leung, suspended the meeting of the council minutes after it began and ejected
urban Jan Dhan and social security beneficiaries, have also been allowed to borrow an additional total of ₹12 trillion, would raise the fiscal deficit to Eddie Chu for holding up a sarcastic sign about a pro-Beijing lawmaker that read
and roughly 178 million PDS recipients in the two percentage points of gross state domestic 6% of GDP. With state government borrowings “Best Chairperson, Starry Lee”.
urban sector, many poor urban households get product, with conditions. added, it could add up to 10%. More than that may The Sydney Morning Herald
excluded for not satisfying documentary require- These conditions could have been configured in not be advisable at this juncture.

MY VIEW | PEN DRIVE

The millennial’s guide to corona lockdown survival

ticular. We grew up during the tech boom, launching innovative startups, acquiring a income losses. At an individual level, it is pied will provide the mind the right fodder
PRERANA DESHPANDE a time when the world was a far cry from the foreign education, a burning desire for pro- crucial to focus on mental health. Counsel- during free time but without the stress.
one we live in today. Despite the tech boom, ductivity, and so on, can all be traced back to ling is your best friend. The Centre has set Back to basics: Savour running your
the 1990s were a motley mix of the simplic- that itch. And yet, today, as a life-altering up helplines for people suffering from covid errands. Parted from our house helps, we’re
ity of a bygone era and the promise of the pandemic has thrust unexpectedly upon us anxiety. Many private counsellors are also now forced to tackle the cooking, cleaning,
fast-paced excitement of a new millennium. the mantle of shaping history, all that we offering their services free of charge. laundry and other tasks ourselves. These are

E
veryone wants to live in an exciting, Economic liberalization and a hitherto know and aspire to has turned upside down. Solitary reaper: Isolation has forced us to basic survival skills that are never too out-
epoch-making era—until they do. His- unwitnessed rate of growth of technology There are sudden fears associated with be in our own company. But few are used to dated to acquire. Aside from being hum-
toric times, after all, are hardly as meant that disposable incomes had travel. Increased protectionism is quelling it, much less while feeling at peace. Take the bling, the chores can also be the source of a
adventurous and exciting to experience as increased, snazzy import goods had become hankerings for imported possessions. And time to understand the delicate distinction quiet joy that comes from the dependability
a perusal of history might later suggest. The available at kirana stores, consumption was the idée fixe of productivity is now at odds between loneliness and solitude. You can be of a routine, especially at an uncertain time.
pursuit of adventure—that fickle enchant- growing, job creation had accelerated, and with the need to avoid workplaces for social in solitude but not necessarily feel lonely. Stayin’ alive: Life in times of a pandemic
ress—is what drives and sustains life. I recall life had got prosperous. We played outdoor distancing and the Appreciating your own really boils down to survival; that’s the
countless instances growing up and even games and the prototype MS-DOS-based drudgery of work-from- company and being com- golden word. So make your Instagram-
later while at university, of sitting sedately computer games in equal measure. Modest home routines to boot. QUICK READ fortable in your own trending Dalgona coffee and your banana
is a Mumbai-based around with friends with nothing to worry Marie biscuits co-existed with the more ele- So then, how do we step space are indispensable bread and make your apocalypse 2020
journalist about aside from an upcoming test, and gant Danish cookies in our snack boxes. up and prove worthy of As a life-altering pandemic has tools for self-growth. memes. Whatever it takes to survive and get
someone observing wistfully that the times Traditional TV shows like Bharat Ek Khoj the mantle? thrust unexpectedly upon us Busy is a blessing: Pick by, right? But you can do more. No matter
we lived in were too “ordinary”, or normal. and Malgudi Days were essential viewing, Here’s a list of five the mantle of shaping history, all up that hobby you’ve had how aatmanirbhar one is, we can’t survive
That 2020 foresight, pun fully intended, but our loyalties began to splinter as cable fundamental but micro- that we know and aspire to has on your bucket list for in silos. We need each other to rebuild the
sure was elusive. Fast-forward to the TV introduced us to the new glamour of changes that will be key, turned upside down. But how ages, but not for the sake post-pandemic world. This transcends bor-
present day, where we’re over two months Seinfeld and Friends. Growing up in an aus- a list of corona com- do we prove worthy of it? of being productive. ders and religions and politics. Extraordi-
into the Great Lockdown, waking up to a tere time with just enough exposure to tech- mandments, if you will. Humanity is going nary times bring out the best in some people
spiking covid death count every morning, nology and the finer things in life left a gen- Mental health mat- Make your Instagram-trending through a collective and the worst in others. Let’s prove capable
desperate for life to get back to the mundane eration with an unmistakable keeda (itch) ters: The United Nations Dalgona coffee and put out your trauma, and being pro- of leaving behind any divisiveness and
old normal. for adventure. warned of an impending apocalypse memes. But, for all ductive cannot be the top being consciously more humane: herein lies
The funny feeling of wanting our times to Millennial aspirations were shaped in a mental health crisis our self-reliance, we can’t survive focus right now. Pursu- our true adventure. This will determine
be more consequential or remarkable must defining way by a liberalizing and globaliz- amid isolation, surging in silos. Re-imagining the world ing a hobby just to how well we wear that mantle of shaping
be familiar to many of us, millennials in par- ing world. Ambitions of globetrotting, domestic violence and is the true adventure we await. unwind and stay occu- history. Hindsight is definitely 20/20.
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 14 NO. 130 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR)

FRANKLIN INVESTORS SEND OYO SAYS IT WON’EXIT ANY

FRIDAY, MAY 29, 2020 LEGAL NOTICE TO SEBI uP5 EXISTING MARKET uP11
LIVEMINT.COM

DON’T MISS
SC orders free travel, food for TWITTERVERSE

migrant workers going home

Donald J. Trump
@realDonaldTrump
Pharma cos not to Big Tech is doing every-
profiteer off virus State to provide food and water at stations or bus stands, Indian Railways responsible for other needs thing in their power to
Global pharma firms CENSOR in advance the
have pledged to supply 2020 Election. If that
covid-19 vaccines when Japnam Bindra issued notice to the Centre and all happens, we no longer
available on a no-profit have our freedom. I will
[email protected] states and Union territories.
basis. See Page 7
NEW DELHI Solicitor general Tushar Mehta, never let it happen!
who represented the Centre, told

T
he Supreme Court on the court that 3,700 Shramik Spe-
No benefits for CBI court to Thursday provided cial trains had transported 9.1 mil-
discoms with dues record
much-needed relief to lion migrants to their home states
statements
Discoms that have dues of Babri migrant workers by between 1 May and 27 May. As
with PFC or REC cannot mosque directing state govern- many as 185,000 migrants were
tap into the ₹90,000 demolition ments to provide free transport being ferried on 187 trains every
crore package the FM accused
and adequate food to those who day by the Railways, he said.
announced. See Page 5 from 4 June
seek to go to their home states. Migrant workers were not being
bit.ly/36KmWv
The directive by the apex court asked to bear the cost of the ticket Bill Gates
i
bench comprising Justices Ashok as the Railway fares were being @BillGates
Bhushan, Sanjay Kishan Kaul and borne by either the receiving state I continue to be inspired
M.R. Shah came in a suo motu or originating state, Mehta said. by all of the volunteers
action related to the miseries faced The top court also heard the (including many retired
by India’s informal workforce hit submissions by counsels repre- health care workers and
by the lockdown put in place to senting Bihar, Rajasthan, Maha- teachers) on the front
check the spread of coronavirus rashtra, Madhya Pradesh, and lines of the fight against
and the subsequent job losses. Uttar Pradesh governments. The coronavirus each day.
The originating state will be The top court directed that the receiving state shall provide transport, health screening and other facilities. HT counsel for Bihar submitted that
responsible for providing food and the state has reimbursed the fare
Auto dealers sit water at stations and bus stands, places where they are stranded,” with food and all necessary facili- The bench directed all the states to migrants who had paid for their
on huge inventory while Indian Railways must be the court said. ties. and Union territories to file a tickets. Uttar Pradesh’s counsel
Many auto dealers face held responsible for their require- The top court also directed that The court clarified that railway detailed report with details said the state has taken several
uncertainty in repaying ments during the journey, said the the receiving state shall provide fares have to be borne by the states regarding the number of migrants, steps to encourage quarantine of
loans as they have huge top court. transport, health plans for trans- migrants by paying them Rs1,000
unsold inventory of BS-
VI vehicles . See Page 7
States must also oversee the screening and TO-DO LIST portation and reg- in cash, besides providing food.
registration process of migrant other facilities istration, besides However, senior advocate Kapil
workers and ensure that they free of charge SC directed that STATES shall oversee MIGRANT workers other related Sibal, who represented two NGOs Joe Biden
board the train or bus at the earli- once the migrant railway fares have to registration of
be borne by the workers and ensure
found walking home
must immediately be
details concern- who wanted to be impleaded in @JoeBiden
Asset quality of est, the Supreme Court said. It also workers reach states and Union ing migrant work- the petition, told the court that the
banks to worsen they board trains or taken to shelters and
directed the governments to pub- their native pla- territories buses at the earliest given the necessities ers, by 5 June government has not provided for Presidents are sup-
Fitch Ratings has stated licize complete information for all ces. when the case the minimum standard of living posed to lead by exam-
that Indian banks face concerned. “We further direct that The apex court comes up for under Section 12 of the Disaster ple—and every day
asset quality the state shall simplify and speed also said that those who were and Union territories, and the hearing next. Management Act, because of Donald Trump proves
deterioration for at least how incapable he is of
two years. See Page 7
up the process of registration of walking along highways to reach Railways must make arrange- On Tuesday, the apex court which people staying in the relief
migrant workers and also provide their villages should immediately ments as soon as a state places its bench took suo motu cognizance camps are not getting quality food doing that.
help desk for registration at the be taken to shelters and provided request for trains. of the miseries of the workers and and other items.

India ignores Trump Returnee migrants, their skill mapping could rewire state politics
offer to mediate, says Gyan Varma & Anuja
NEW DELHI
government know what kind
of work these migrants were
to give us information on their inputs will be recorded.
requirements of skilled and Non-Bharatiya Janata Party
involved in, in different states. unskilled workers. We have (BJP) ruled states, too, are
is in talks with China T he surge in the number
of returning migrants
amid the covid-19 crisis
This data will help us estimate
the number of migrant labou-
rers,” said a cabinet minister in
received requests for 500,000 looking to tap similar skill
skilled workers from different mapping initiatives. “We have
industries in the state. The a control room where we are
has forced state governments the Bihar government. process is continuing and the taking down details of all
Elizabeth Roche to create local job opportuni- Bihar has completed skill state government is confident migrant labourers who are
[email protected] ties and a social safety net mapping of at least 500,000 that it would be able to provide getting in touch with us. The
NEW DELHI around India’s low-skilled migrant labourers who had jobs to migrant idea is to note
floating workforce. returned to the state. If the workers,” said a The first big test down what their

I
ndia on Thursday said it was With over 6.5 million daily- state government manages to cabinet minister, of the strategy of skill set is, so that
“engaged” with China in wage workers returning to alleviate the sufferings of its requesting ano- states to provide t h e y c a n b e
efforts to resolve a tense their villages amid an uncer- daily-wage workers in time, it nymity. Uttar Pra- jobs to migrants employed gain-
border standoff—a short mes- tain future, the politically sig- could make significant gains in desh has prom-
would be the next fully in the future.
sage that ignored a mediation nificant population may well the assembly elections five ised to provide We are getting a
offer by US president Donald expect some respite as states months hence. jobs to 2 million elections in Bihar diverse range of
Trump. launch several initiatives to The exercise to collect data on India’s unorganized workforce will Likewise, Uttar Pradesh, migrants. in five months occupational
Asked to comment on map their numbers, bridge the also give states a handle on how to address unemployment. AP too, has set up a migration On Wednes- inputs even from
Trump’s offer, foreign minis- skill gap and help them earn a commission and a panel to day, Madhya Pra- labourers from
try spokesman Anurag Srivas- livelihood. ized workforce and skill map- migration of these labourers address the welfare of migrant desh chief minister Shivraj other states, such as Jhark-
tava did not directly refer to India and China are looking for So far, Uttar Pradesh has ping could be a first-of-its- started two months ago, we labourers. According to the Singh Chauhan held a review hand, for handicrafts, indus-
Trump but said: “We are a bilateral solution. REUTERS received 2.5 million migrants, kind initiative, which may had no estimate to know how initial data, the worst affected meeting of the ‘Shram Siddhi trial and construction, as well
engaged with the Chinese side Bihar recorded 2 million finally help state governments many people had left the state were real estate workers, car- Abhiyan’, which is aimed at as agricultural labourers who
to peacefully resolve this ease and has demanded a returnees, while Madhya Pra- to get a handle on how they and how many could possibly penters, painters, electricians providing employment to work in sugarcane fields of
issue”—an indication that transparent investigation into desh and Jharkhand expect 1.3 can address employment return. The idea of creating a and artisans, besides handi- unskilled labourers. The state Uttar Pradesh,” a senior offi-
India would sort out the prob- how covid-19 became a pan- million and 1 million workers, issues in a fragmented labour nodal agency to collect infor- craftspeople. “So far, we have will form a skill register of cial from the labour depart-
lem bilaterally with China. demic. respectively. market. mation on migrant labourers some good result of our work. migrant labourers at the pan- ment of Jharkhand said, also
“The two sides have estab- Ironically, the US offer came The massive exercise to col- “This is an important data will not only help us create The Uttar Pradesh govern- chayat level, wherein informa- requesting anonymity.
lished mechanisms both at on a day when China indicated lect data on India’s unorgan- set for us because when the jobs but also help the state ment had asked all industries tion on their skills and related [email protected]
military and diplomatic levels a dialling down of tensions fol-
to resolve situations which lowing a military build-up by
may arise in border areas Indian and Chinese armies
peacefully through dialogue along their borders in Sikkim
and continue to remain and Ladakh after physical
engaged through these chan- fights with exchange of blows.
nels,” he said when asked Despite the seeming softening
about the ten- of Beijing’s
Delhi govt defends 70% ‘corona fee’, tells high court liquor a privilege
sions with China. India has stepped stance, two peo-
Trump said in a up efforts to find ple familiar with Prathma Sharma The pleas are likely to be heard number of vends operational crore in May 2019.
Twitter post on a diplomatic the development [email protected] on Friday. last year were about 800 and, A batch of petitions were
Wednesday, “We solution to the said Indian and NEW DELHI The affidavit also cited simi- as of now, only 40% of them filed before the Delhi high
have informed Chinese troops lar actions by 10 other states, were operational due to vari- court challenging the state
ongoing border

L
both India and were holding iquor trade and con- including Assam, Meghalaya, ous restrictions government’s
China that the dispute with their positions sumption is not a funda- Karnataka, Andhra Pradesh, imposed by the The government decision to levy a
United States is China with no changes. mental right, but a privi- Telangana, Uttar Pradesh, government in argued that the “corona fee” on
ready, willing and On the ten- lege and the state has the Haryana, Rajasthan, Tamil view of the coro- lockdown shrank the ground that it
able to mediate or sions with China, authority to regulate its trade, Nadu and West Bengal. navirus out- revenues of the was arbitrary, as
arbitrate their now raging bor- Srivastava said that talks the Aam Aadmi Party (AAP) It further argued that owing break,” it said. the maximum
state by nearly
der dispute. Thank you!” between military officers at government told the Delhi to the clampdown on all eco- The govern- retail price
The post seen as surprising various levels had not yielded high court on Thursday. nomic activities to contain the ment said the 90% in April from included taxes,
even by Trump’s standards, any results thus far and that In response to a batch of covid-19 outbreak, the state total excise reve- that of last year duties and levies.
since US-China relations are diplomatic efforts were under petitions challenging its 4 May government’s revenue, which nue collected by Another plea had
fraught due to tensions over way to find a solution. notification to levy a ”special primarily comprises value- Delhi cited similar actions taken by 10 other states in court. PTI the state during 4 alleged that the
trade and finger pointing over Meanwhile, Trump said in a corona fee’’ on liquor, the added tax (VAT) and goods and May to 25 May was around Delhi Excise Act does not
the handling of the covid-19 Twitter post on Thursday, “All Delhi government in its affida- services tax (GST) collection, compared to about ₹4,000 tional liquor vends has been ₹227.44 crore, which includes empower the state to levy any
pandemic. over the World the CoronaVi- vit added that it was free to state excise and stamp duty, crore in April 2019. ₹187 crore, which is way too ₹127 crore in special corona fee or charges except as pro-
The US has accused China rus, a very bad “gift” from accord or regulate liquor pri- had shrunk by almost 90% in “Between 4 May and 25 less as compared to the sales fee. In comparison, it had col- vided under section 26 of the
of hiding facts about the dis- China, marches on. Not good!“ ces as per the state excise law. April, to a mere ₹300 crore, May, the total sale of opera- figure of May 2019, as the lected a revenue of ₹425.24 Act.
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