MONDAY, 12 APRIL 2021

14 pages in 1 section
NEW DELHI
www.business-standard.com
~10.00
VOLUME XXVII NUMBER 150

How markets performed last week

% chg over Dec 31, ‘19
Index on *One- --————————————————————————————————————————————————————————

Apr 9, ‘21 week Local currency in US $

Sensex 49,591 -0.9 3.9 1.5
Nifty 14,835 -0.2 6.1 3.7 COMPANIES P3 TAKE TWO P13
Dow Jones 33,801 2.0 10.4 10.4
Nasdaq
Hang Seng
13,900
28,699
3.1
-0.8
7.9
5.4
7.9
5.1 FMCG REVENUE GROWTH MAY CAN TESLA WIN INDIA? MOST
Nikkei
FTSE
DAX
29,768
6,916
15,234
-0.3
2.6
0.8
8.5
7.0
11.0
2.1
7.4
8.2
ACCELERATE ON LOW BASE US CARMAKERS HAVE FAILED
*Change (%) over previous week Source: Bloomberg P U BL I S HED S IM U L TA NE OU SL Y F RO M AH M E D AB AD , B ENG AL UR U, BH UBA NE SWAR , CH AND IG AR H, CHEN NAI, HYD ER AB A D, KOCH I, KOLK ATA, LUCK NOW , MUMB AI (A LSO PR IN TE D IN B HOPA L), N E W DE LHI AN D PUN E

Vedanta in talks Maha lockdown Cairn offers to invest

5 STATES ACCOUNT
VIRUS FOR OVER 70%
TRACKER OF ACTIVE CASES
decision pushed
$1.2 bn if India relents
Total 13,358,805
INDIA
!152,879 to set up display back to April 14
ANEESH PHADNIS
Mumbai, 11 April
DILASHA SETH
New Delhi, 11 April

fabrication unit
Active cases Recovered Deaths
The Maharashtra Cabinet is likely to As the tax battle intensifies between
1,108,087 12,081,443 169,275 meet on Wednesday to take a call on India and energy giant Cairn, with New
! 61,456 !90,584 !839 imposing lockdown in the state. Chief Delhi challenging the $1.2-billion award
Note: Total cases include 1 migration; figures as of 9 pm IST; arrow
Minister (CM) Uddhav Thackeray has at The Hague, the UK oil major has
shows one-day change to walk a tight rope as his administra- reached out to the Indian government
Source: Ministry of Health and Family Welfare
If it succeeds, India will get first such facility tion has to take tough measures to con- through informal channels with a fresh
EFFECTIVENESS OF OUR JABS trol the spread of coronavirus and at proposal to settle the dispute, though
LOW: CHINA OFFICIAL P8 SURAJEET DAS GUPTA the same time ensure relief to various with dim prospects of success.
New Delhi, 11 April sections of society in the event of a lock- Cairn Energy has offered to invest the
down. Through the weekend, entire award money in India, which

V
ECONOMY & PUBLIC AFFAIRS 6 edanta Group is in talks with the Thackeray held meetings with political includes the principal amount of $1.2 bil- The Centre is still open to settling
the dispute by accommodating
India slams US on linking government on setting up a
display fabrication plant,
leaders and members of the state’s
Covid task force to formulate a strategy
lion and interest of $500 million if the
government agrees to enforce the award. the oil major under VsV direct
climate issues to recovery according to sources in the know. against the pandemic. The state However, the government is unlikely to tax dispute resolution scheme
India-US relations seems to have been hit For Vedanta, led by non-resident reported over 60,000 cases on Sunday, accede to the proposal, arguing that it
by some hiccups lately. Close on the heels of Indian billionaire Anil Agarwal, this accounting for over 60 per cent of the would mean accepting the verdict, would have resulted in an immediate
India registering a protest against an US Navy will be its second attempt to enter the national cases. Turn to Page 6 > against which it has appealed. refund of $300 million,” said a govern-
ship’s passage through its exclusive economic space, following an abortive attempt “There is no way that the government ment official.
zone without prior permission, New Delhi has five years ago when it tried to build is going to accept the proposal. We have In fact, the government is still open
strongly criticised Washington’s attempt to link a gigantic $10-billion plant in FIGHTING A VIRUS GONE VIRAL filed an appeal. Any solution will be to settling the dispute by accommodat-
climate issues with economic recovery in the
wake of the pandemic at the forthcoming
Maharashtra in five phases. For
the technology, Vedanta had tied up ‘FAB’ CHANCE 3.5mn 152,879 within the legal framework. For that, we
have asked them to come under the
ing the oil major under VsV direct tax
dispute resolution scheme, the declara-
G20 talks. US Treasury Secretary has been with LG. Covid-19 New Covid-19 cases Vivad Se Vishwas (VsV) scheme and set- tion window for which officially closed
championing the linkage, and India feels this If successful, it will be the first | Display fab in India is needed vaccines registered in the tle the dispute by paying 50 per cent of on March 31. The payment window clos-
is uncalled for. SUBHOMOY BHATTACHARJEE writes display fabrication facility in the to avoid dependence on given last 24 hours the disputed principal tax amount and es on April 30.
country, putting India on the global China, which is making in the get a waiver of interest and penalty. That Turn to Page 6 >
map with a select few players. massive investments last 24 55,411
ON A display fabrication plant
manufactures screens through a | India’s demand for displays
hours.
Cumulative
New cases registered in
Maharashtra, followed
SPECIALS
MONDAY complex method which includes
sandwiching pieces of glass with
transistor cells and using metal alloys
will double to $15 billion by 2025
| Display fab plant requires
vaccination
crosses
by Chhattisgarh
(14,098) and
Infy to consider buyback on Apr 14
BANKER’S TRUST and silicon. Such a plant requires a a minimum initial investment 100 million Uttar Pradesh (12,748) SHIVANI SHINDE “The board of the
April monetary policy minimum start up investment of over of $2 billion company will consider a
a fine balancing act 13 > $2-3 billion. The plant assembles the
10 STATES Accounted for Mumbai, 11 April
proposal for buyback of fully
glass with other components | Technology controlled by a over 80% of new cases Information technology (IT) paid-up equity shares of the
Structurally, it’s a well-crafted policy.
But like in cricket and politics, required to power the screen. few countries and companies services major Infosys, in a company at its meeting to be
things can change dramatically for Most such plants also have an Lockdown in Delhi if listing to the BSE, said its held on April 14, in accor-
a central bank in a very short time. assembly unit. expression of interest by April end hospital system crashes: board would consider a dance with the Securities
TAMAL BANDYOPADHYAY writes Sources say that the Ministry for setting up a plant, had been Arvind Kejriwal P5 proposal for buyback of fully and Exchange Board of India
of Electronics and Information ‘proactive’ in reaching out to paid-up equity shares of the (Buy-back of Securities)
STATSGURU Technology, which has invited global Vedanta, along with other possible EDIT: Making company. The board is set to Regulations, 2018,” the state-
The corporate tax pitch 13 > and Indian companies to submit an contenders. Turn to Page 6 > of Bidenomics P9 meet on April 14. ment said. Turn to Page 6 >

MONEY MANAGER

Centre halts exports

of Remdesivir amid
rising Covid-19 cases
End of the plastic smile 12 > SOHINI DAS ANTIVIRAL
roiling the credit card industry, and
the rules of the game are being reset.
Mumbai, 11 April
REMDESIVIR:
RAGHU MOHAN writes India on Sunday banned exports of IN DOSES
antiviral drug Remdesivir, used to
POLITICS & PUBLIC AFFAIRS treat moderate to severe Covid-19,
MVA: Maharashtra amid rising domestic demand and
Volatile Alliance 7> reports of shortages from states.
The Aghadi is hurtling from one crisis Export is banned till the situation
to another, putting the partnership in the country improves. 3.88 million Doses per month
between unlikely friends under “The export of injection of total industry capacity
Remdesivir and Remdesivir
immense strain. DHAVAL KULKARNI writes
active pharmaceutical ingredients is 1.1 million Active Covid-19
THE SMART INVESTOR prohibited till the Covid-19 situation cases in India
Mismatch between valuations, in the country improves,” the Centre
said in a statement. The government
15-20% Cases that typically
fundamentals glaring for AMCs 10 > need hospitalisation
March is historically a good month said India was witnessing a surge in
for savings products across categories, Covid-19 cases. As of April 11, there 10% Exported approximately
for reasons such as tax incentives. were 1.1 million active Covid cases and
HAMSINI KARTHIK writes this was steadily increasing, the 7 Manufacturers producing
statement read. Remdesivir in India
“This has led to a sudden spike in
BACK PAGE P14 demand for Remdesivir. There is INSIDE
Moving Day: potential for a further increase in this
demand in the coming days,” the
P2 P5
Eastwards to Japan government noted. An industry MANKIND
LIKELY TO
REAL-WORLD DATA WILL
DECIDE COMMERCIAL
Saturday is said to be insider noted that not more than
APPROVAL OF VACCINES
Moving Day, when the 10 per cent of the production was
PARTNER RDIF
TO MARKET ‘TIKA UTSAV’ IS START
pulse quickens as the being exported at the moment. SPUTNIK V OF SECOND BIG WAR ON
number of holes begin Seven Indian companies are IN INDIA COVID: PRIME MINISTER
to run out and those who producing Remdesivir under a
“expect” to contend. voluntary licensing agreement with P9
SIDDHARTH SHRIRAM US-headquartered Gilead Sciences, EDIT: FAILURE ON VACCINES
writes Inc. Turn to Page 6 >

Power exchange trading reforms proposed

SHREYA JAI
New Delhi, 11 April POWER EXCHANGE | Green energy

With long-term power purchase getting

THE PLATFORMS IN INDIA trading on
exchanges started
obsolete, the Union Ministry of Power POWER | Indian
Energy
| Power
Exchange in August 2020
has proposed a set of reforms for
short-term sale purchase of power. The
HITTERS Exchange India | Green energy
ministry has proposed an integrated faces shortfall of
day-ahead market (DAM) in power TYPES OF POWER TRADING long-term power
exchanges, which would blend trading | Term-ahead sale agreements
of green and conventional energy, | Day-ahead | 19 gigawatt of
better the power price discovery, and | Intraday solar and wind
improve payment to power generators.
| Green-term ahead power projects yet
In future, the ministry is also
looking at merging the DAMs of all | Real-time market to find buyers
power exchanges into one entity,
which will oversee the trading of
day-ahead bids for both renewable In the set of proposals, the ministry to place bids for selling or buying both
energy (RE) and conventional power. said all existing DAMs should be RE and conventional power.
The integrated DAM, however, has integrated, with separate price The move comes at a time when RE
been planned to launch without this formation for RE and conventional in the country is facing lack of buyers.
merger, for now, said officials. energy. Participants would be allowed Turn to Page 6 >
2 COMPANIES
>
NEW DELHI | MONDAY, 12 APRIL 2021

Apply strict safety norms, Mankind may

IN BRIEF
Bridgestone unlocks ^7 mn in
9 months, helped by Freepay
partner RDIF
Pune-based tyre maker Bridgestone India has
unlocked around ^7 million in cash flows in
nine months with the shifting of its payment
collection process on digital platform Freepay,
a senior company executive has said. As many
not lockdown: CEOs’ poll
Partial lockdown measures may impact movement of labour & goods, they say for Sputnik V
as 80 per cent of Bridgestone India's around-
7,000 dealers have already migrated to the NIKUNJ OHRI
platform since its introduction last year, said New Delhi, 11 April
Jyotsna Sharma, Chief Financial Officer.

I
Bridgestone India is the domestic arm of Japan's Bridgestone ndia should focus on protecting
Corporation. Freepay allows Bridgestone dealers to make livelihoods, along with lives, in its
payments directly through self-service, using their smartphones or fight against the pandemic, and
desktops. It adds incentives of cash discounts and credit notes industrial activity should be kept out of
against outstanding invoices besides offering other facilities. PTI partial lockdown’s ambit, said a poll of
chief executive officers (CEOs) conduct-
ed by the Confederation of Indian
EV policy needs to Hyundai looks to Industry (CII).
be rejigged, says log double-digit Micro containment strategies, along

Hero Electric MD sales growth in ‘21

with Covid-19-appropriate behaviour,
are an effective attempt to contain the
SOHINI DAS
Mumbai, 11 April
REVIEW MEET
The country’s electric vehicle spread of the second wave of infections, What expert panel sought
(EV) policy needs to be the CII said. As Russian Covid-19 vaccine from DRL:
“rejigged” in order to make it Partial lockdown could affect the Sputnik V nears entry into > Immunogenicity data for
more effective to achieve movement of labour and goods, which the Indian market, one of
virus neutralising
envisaged sales targets, would affect industrial production, the the largest drug firms in the
according to Hero Electric. “We poll said. country, Mankind antibodies on Day 42,
are now two years down in the About 56 per cent of the 75 CEOs Pharmaceuticals, is likely to according to protocol
policy and there is only one polled expressed concern over loss of partner the Russian Direct > Data on all serious adverse
year to go. But if you look at up to 50 per cent production if the Investment Fund (RDIF) for events and RT-PCR
the number of vehicles which movement of goods was restricted. distributing it in India. positive cases along with
have benefitted, it is just Hyundai Motor India expects its Around 68 per cent of the CEOs polled IN NUMBERS According to sources, causality analysis
around 60,000 units. It should sales to grow in double digits represented micro, small, and medium Sputnik V may be priced
have been six lakh plus by this year as it anticipates enterprises. 75% CEOs say the nation concern over loss of up to half
of production if movement of
they would accommodate
their labour force in the factory
~500 per dose when it is
> Correlation of
immunogenicity data,
now. So something is not demand to remain strong Industry is prepared and equipped should also focus on commercially available. The
goods is restricted in case of movement including cell-based
working,” says Hero Electric despite various challenges in for implementing stricter health and protecting livelihoods along Centre and RDIF, however,
response between phase-
Managing Director Naveen the market, said a top company safety protocols and “stringent imple- with lives in its fight against 57% companies expressed
restrictions due to night curfew will negotiate prices at
II and phase-III trials
Munjal. PTI official. The automaker remains
optimistic about its sales
mentation of safety norms was opined
to be better than the option of partial
Covid-19 the need to stock raw materials 60% CEOs polled which the government will
procure the vaccine for the > Comparative analysis of
Anarock’s FY21 prospects as there is a strong lockdowns by 93 per cent of the CEOs 68% CEOs polled in excess of just-in-time levels
to meet any likely shortage of
suggested allowing
movement of workers in all
national Covid immunisa- phase-III immunogenicity
revenue up 18% pull for personal mobility amid
the raging coronavirus
polled”, the industry body said.
“Industry is keen to work with the
represented micro, small, and
raw materials shifts during night curfews
tion drive.
According to sources
data generated on Indian
medium enterprises and Russian studies at
to ~302 crore
Property
pandemic. PTI government on universal coverage (18
years and above) of vaccination pro- 56% expressed their 31% industry leaders said along with free movement of
goods
close to the development,
talks are in advanced stages
various time points
consultant NMDC’s Nagarnar gramme and in implementing strict between Mankind Pharma
Anarock
has clocked
plant demerger to health and safety protocols”, said TV
Narendran, president-designate at the
“The government handled both lives
and livelihoods effectively during the
instead of night curfew or lockdown.
The traders’ body suggested that a
and RDIF to sign a partner-
ship for distribution of the
immune response triggered
by a vaccine), serious
an 18 per be done by Aug-Sep CII. first wave. It could do so again by keep- lockdown was not a solution since trade vaccine in India. adverse events following
cent The demerger process of Around 57 per cent of the companies ing industrial activities out of the ambit and commerce was struggling to recover An announcement is vaccination, comparison of
growth in NMDC's Nagarnar Steel Plant in expressed the need to stock raw mate- of partial lockdowns aimed at restrict- from the losses of the previous one. likely soon. immunogenicity data
its revenue Chhattisgarh into a separate rials in excess of just-in-time levels to ing social gatherings. This will help Steps are needed to stop the increase Mankind Pharma did not between Indian and Russian
at ~302 entity is expected to be meet any likely shortage, and 31 per cent India recover from the economic con- in Covid-19 cases, and economic activity comment on the develop- trials apart from a cold chain
crore completed by August- said they would accommodate their traction and stabilise the upward should continue by observing safety ment and an email sent to management plan.
during the last fiscal despite September of this year, a labour force in the factory in the case growth trends being currently wit- protocols in a strict manner, the body RDIF remained unanswered. The SEC is meeting on
the pandemic, its chairman source said. Nagar Steel Plant of movement restrictions due to night nessed in several sectors,” said said. It suggested different timings for “This would be a distri- Monday to review DRL’s
Anuj Puri said. In an interview (NSP) is a 3 million tonne per curfew. Narendran. offices and markets. Government and bution partnership for tak- application.
with PTI, Puri said the company annum (mtpa) integrated More than 60 per cent of the CEOs The body has also urged member private offices may work from 8 am to ing the vaccine to remote Sputnik V has been regis-
sold 14,700 units worth ~16,240 steel plant being set up by suggested allowing movements of work- companies and industry to consider 2pm whereas markets may be allowed corners of the country. tered in 59 countries globally
crore on behalf of the country's largest iron ore ers in all shifts during night curfews and vaccinating the eligible workforce at the to function from 11am to 5 pm, the body Mankind has a strong distri- with a total population of
developers in FY21. The miner NMDC at Nagarnar in also free movements of goods. workplace. suggested. bution network in the hin- over 1.5 billion. Efficacy of
numbers are higher than the Chhattisgarh over an area of This should be allowed with all work- The Confederation of All India Banks and other financial institu- terland,” said a source. Sputnik V is 91.6 per cent.
FY20, during which Anarock 1,980 acres at a revised ers and industry staff strictly, following Traders (CAIT) wrote to Prime Minister tions may be allowed to work from 9 am At present, drug regulator RDIF has tied up with
sold 12,710 units worth over estimated cost of ~23,140 all health and safety protocols, a state- Narendra Modi, requesting measures to to 3 pm, helping in staggered move- Drugs Controller General of several manufacturing part-
~11,000 crore. PTI crore. PTI ment by the CII said. minimise the contraction of virus ments of people. India (DCGI) has granted ners in India to produce the
“restricted emergency use” vaccine on a large scale for
authorisation to two vac- both the Indian and interna-
cines – Covishield and tional markets. DRL had ear-

Koo eyes going global after cracking India market Covaxin. This does not allow
the makers to sell these vac-
cines commercially. The
government procures the
lier indicated that the 250
million doses have been
lined up for India.
Total manufacturing
ters such as BookMyShow Founder vaccine from them. capacity lined up with sev-
Firm will co-exist EYEING EXPANSION Ashish Hemrajani, Udaan Co- The marketing and distri- eral partners in India is over
with Twitter rather Koo has reached It is now eyeing 100
According to the
Founder Sujeet Kumar, Flipkart
CEO Kalyan Krishnamurthy, and
bution partnerships will
come into force after the
850-900 million doses annu-
ally. This includes Hetero,
than be a competitor, 5.5 million million users in the
founders of the Zerodha Founder Nikhil Kamat commercial sale of vaccines Gland Pharma, Virchow
bought Shunwei Capital’s stake in is allowed. Group, Stelis Pharma and
says CEO Radhakrishna downloads next 18 months company, once the
100-million the company, and gave an exit to At present RDIF has a tie- Panace Biotec, among
the sole Chinese investor from up with Hyderabad-based Dr others.
Take the app Firm also in talks with milestone is
SAMREEN AHMAD Bombinate Technologies, the par- Reddy’s Laboratories (DRL) According to sources,
Bengaluru, 11 April
to other multiple investors to achieved, they will ent company of Koo. for conducting bridging clin- more players, including
markets also raise more funds as the start monetising One of the reasons behind giving ical studies in India (which Serum Institute and Shilpa
Homegrown microblogging plat- in the agenda company scales up the platform Shunwei Capital an exit was also have been concluded). The Medicare, are also likely to
form Koo, which shot to fame after driven by the fact that Koo founders pact is also for distributing be manufacturing partners
global tech giant Twitter’s face-off wanted to reassure users that the and marketing the vaccine and talks are on for this. The
with the government in February, through advertising, branding, and Koo’s aim is to go deeper into the can coexist,” said Radhakrishna. platform is truly an atmanirbhar in India. DRL is also helping total capacity for making
has reached 5.5 million downloads, virtual gifting,” said Aprameya Indian market with its focus on Koo is also in talks with multiple app made in India, according to RDIF in securing the Indian Sputnik V in India can thus
and is now eyeing 100 million users Radhakrishna, CEO and co- Indian languages. investors to raise more funds as the Radhakrishna. regulator’s authorisation for cross one billion doses annu-
in the next 18 months. founder, Koo and Vokal. The app is currently available in company scales. However, the company will be its vaccine in India. ally, much ahead of the other
According to the founders of the Radhakrishna wants to take the eight Indian languages including There have been reports in the open to Chinese investments in the It has already applied for vaccine candidates.
firm, once the 100-million mile- app to countries such as Indonesia, Kannada, Tamil, Telugu, and media that Koo’s founders have future if it is completely acceptable an emergency use authori- Sputnik V requires a
stone is achieved, they will start Malaysia, and the Philippines after Marathi, and will be rolling out in been in talks with private equity under the law of the land, he added. sation before the subject minus 18-20 degree Celsius
monetising the platform and will cracking the India market. over a dozen others through the player Tiger Global to raise around The company has raised expert committee (SEC) of cold chain to remain stable.
take the app to other markets. Often described as India’s alter- next one year. $30 million. $4.1 million in February this year the Central Drugs Standard Work on a lyophilised (or
“We are not focused on monetis- native to Twitter, Radhakrishna “I think Twitter will connect When asked, Radhakrishna said, from new investor 3one4 Capital Control Organisation freeze dried) version of the
ing right now and will grow the user believes that Koo will co-exist with the English-speaking audience “We are in talks with multiple peo- and existing investors Accel (CDSCO).The SEC has vaccine is going on. This ver-
base to a certain extent, after which with Twitter, rather than being a across countries. These are two dif- ple for our next round of funding.” Partners, Kalaari Capital, Blume sought detailed insights on sion can remain stable at
we will focus on monetising competitor. ferent markets, so both platforms In March this year, startup A-lis- Ventures, and Dream Incubator. immunogenicity (desired 2-8 degree Celsius.

Franklin unitholders Google helping firms’ digital transformation: Bedi

set to get ~2,962 crore PEERZADA ABRAR
Bengaluru, 11 April
zones in 17 countries. With one
Cloud region already in Mumbai,
turnkey security offering
BeyondCorp Enterprise for

in second tranche For the last one year, Bikram Singh

Bedi has been sharpening his guitar
“WE ARE HELPING
CUSTOMERS INCREASE
Google has plans to open a second
cloud region in Delhi this year. It is
businesses in India.
BeyondCorp is modelled on how

PRESS TRUST OF INDIA ed April 9, he added. skills as he was able to get enough
THEIR EFFICIENCY AS THEY also making investments to hire
talent related to technology, sales
Google keeps its network safe.
Another big area is workspace
New Delhi, 11 April The payment will be made time to spend on his hobbies during WORK FROM HOME. THE and customer service. “The year strategy. Google has introduced a
electronically to all eligible the pandemic. He plays tunes of SILVER LINING TO 2021 is again a growth year for us. We range of new features across its
SBI Funds Management (SBI unitholders by SBI MF, which Bollywood songs from the 1980s and would continue to expand our Cloud Google Workspace tools. These
MF) will distribute the next has been appointed the liq- 1990s. Besides, Bedi, a senior tech CORONAVIRUS HAS BEEN regions,” says Bedi. “It is about include new updates for tools,
tranche of ~2,962 crore to uidator for schemes under the industry veteran, is focusing on the CHANGING THE MINDSET listening to your customers. Our including Google Drive, Meet and
unitholders of Franklin
Templeton Mutual Fund’s six
wind-up move, by the
Supreme Court.
biggest assignment he bagged
recently. Bedi succeeded Karan
OF SENIOR EXECUTIVES AT customers have been telling us to
expand facilities,” he says.
Slides. It has also introduced a new
way to view and manage
shuttered schemes during the In case a unitholder’s bank Bajwa as tech giant Google Cloud’s MANY FIRMS, WHO FELT To accelerate customers’ digital notifications in the Google Drive
coming week. account is not eli- new managing director (MD) for WORKING OUTSIDE THE journey, Google is also mobile app for Android.
SBI MF has gible for electronic India. He is responsible for leading implementing a multi-cloud “We are helping customers
already distributed payment, a cheque Google Cloud’s sales and operations
OFFICE WAS NOT strategy and promoting open- increase their efficiency and
~9,122 crore to or demand draft teams in the country. PRODUCTIVE” source platforms. This includes productivity as they work from
investors, as direct- will be issued and Bedi joined Google Cloud from BIKRAM SINGH BEDI implementing cloud computing home,” says Bedi. “The silver lining
ed by the Supreme sent to their regis- online grocery start-up Grofers, project Kubernetes, and Anthos, an has been that Covid is changing the
MD, Google Cloud, India
Court earlier. tered address by where he served as president for open platform, that lets users run mindset of senior executives at
“SBI MF will be SBI MF. strategy and new initiatives. Before applications from anywhere. Also, many companies and enterprises.
distributing the next In March, the that, he set up the Amazon Web Google BigQuery, a cloud-based big They felt working outside the office
tranche of ~2,962 Supreme Court Services (AWS) business in India more efficiently. But the Covid he adds. To achieve that Google is data analytics web service. was not productive.”
crore to unitholders accepted the stan- and was head of India and South pandemic has accelerated the ramping up capabilities and The data created by customers One of the biggest customer wins
across all six dard operating pro- Asia for six years. He also held adoption of tech by enterprises. competing with global rivals, such have also scaled up significantly. was Wipro, which selected Google
schemes. The payment to all cedure (SOP) finalised by SBI various leadership positions at tech Now, Cloud computing is about as Amazon Web Services, Microsoft, Bedi says the firm is providing Cloud as the cloud provider for its
investors whose accounts are MF to monetise assets and dis- firms IBM and Oracle. “As Google helping customers accelerate their and Alibaba, to dominate Cloud customers with artificial enterprise-wide SAP footprint.
KYC-compliant with all details tribute the proceeds to (opportunity) came along, my first journey of becoming a digital computing services. Under Bedi’s intelligence (AI) and machine Other customers include mobile
available, will be made during unitholders of the six debt response was to ignore it,” says Bedi. company. This includes providing leadership, Google is eyeing deeper learning technologies to get insights ad network InMobi Group
the week of April 12, 2021,” a schemes of Franklin He adds, “But I realised the work platforms, infrastructure and inroads in areas such as banking, from their data. businesses-smartphone lock screen
Franklin Templeton MF Templeton MF. Google was talking about was very industry solutions. And, Google is financial services, and insurance At a time when cyberattacks are content provider Glance and short-
spokesperson said on Sunday. The fund house had shut different, and hence, there would be doubling down on that strategy. (BFSI), manufacturing, health care, rising due to the pandemic and form video business Roposo.
The amount due to its six debt MF schemes in big learnings.” A few years ago, “For most customers, the buck public sector, media and organisations are becoming Also, Eros Now is using Google
unitholders will be paid by April 2020 citing redemption Cloud computing used to be more has moved,” says Bedi. “Most entertainment, and telecom, as well increasingly vulnerable as Cloud AI and machine learning to
extinguishing proportionate pressures and lack of liquidity about ease of using servers and customers are asking how you can as retail. Google Cloud currently employees work from home, Google automate subtitling of a range of
units at the net asset value dat- in the bond market. storage and running data centres help us become a digital company,” operates across 24 regions and 73 is also betting big on its zero-trust movies and original content.
>
NEW DELHI | MONDAY, 12 APRIL 2021 COMPANIES 3

Upstox stung by data breach; FMCG revenue growth

may accelerate on low
says funds, securities are safe
Company notifies users, says sample data has been uploaded on the dark web
base, healthy demand
PRESS TRUST OF INDIA Commodity inflation remains area of concern, say firms
New Delhi, 11 April DAMAGE CONTROL
VIVEAT SUSAN PINTO

R
etail broking firm Upstox has | As a proactive measure, the Mumbai,11 April
alerted customers of a securi- company has initiated
ty breach that included con- multiple security Fast-moving consumer
tact data and KYC details of cus- enhancements goods (FMCG) companies
tomers, but assured users that their expect to deliver strong rev-
funds and securities remain safe. | It has initiated a password enue and volume growth
The development comes close on reset via OTP for all users numbers for the quarter end-
the heels of reports of data breaches ed March 31, 2021 (Q4), driv-
at organisations such as MobiKwik, | It says it has reported this en by a low base and healthy
Facebook and LinkedIn. incident to the relevant demand trends across
“On receipt of e-mails claiming authorities categories.
unauthorised access into our However, commodity
database, we have appointed a lead-
| It has added multiple security inflation remains a concern,
ing international cybersecurity firm enhancements at all third- updates by firms in the last
to investigate possibilities of breach party data warehouses one week indicate.
of some KYC data stored in third-par- Marico, Godrej Consumer
ty data warehouse systems.” seriously.” “Funds and securities of protected and remain safe. its bug bounty programme to encour- (GCPL) and Titan have all
"This morning, hackers put up a
sample of our data on the dark web,"
all Upstox customers are protected
and remain safe. We have also duly
“Funds can only be moved to your
linked bank accounts and your secu-
age ethical hackers to stress test its
systems and protocols and help it
released their quarterly
updates for Q4, saying they
HIGH ON APPETITE
a company spokesperson said in an reported this incident to the relevant rities are held with the relevant identify any vulnerabilities from expect strong double-digit YoY growth/decline (in %)
e-mailed statement. authorities,” the spokesperson said. depositories.” “As a matter of abun- time to time. volume and revenue growth
The spokesperson added that as The spokesperson further said dant caution, we have also initiated The company has urged cus- for the period. But operating
a proactive measure, the company that at this point, "we don't know a secure password reset via OTP. tomers to always use unique strong margins are expected to fall
has initiated multiple security with certainty the number of cus- Through this time, we have also passwords that are different from significantly due to input
enhancements, particularly at the tomers whose data has been strongly fortified our systems to the older versions and to not share OTPs cost pressures, hitting bot-
third-party warehouses, real-time exposed”. highest standards,” he said. He added with anyone. tomline growth.
24x7 monitoring and additional ring- Upstox, which is backed by that the company has restricted It also urged the customers to "We expect to deliver low
fencing of its network. “As a matter investors like Tiger Global and Ratan access to the impacted database, and beware of online fraud and double- double-digit bottomline
of abundant caution, we have also Tata, has over three million users. added multiple security enhance- check the legitimacy of links and growth in Q4, as operating
initiated a secure password reset via On the company website, Upstox ments at all third-party data-ware- senders, to watch out for OTPs that margins are likely to dip sig-
OTP for all Upstox users. Upstox co-founder and CEO Ravi Kumar said houses. they have requested and to alert the nificantly due to input cost
takes customer security extremely funds and securities of customers are The company has also ramped up service provider in such events. pressures," Marico said in its
*Estimate; period is calendar year Source: Nielsen,industry
quarterly update.

Scrape bug: Tech giants rush to clear the air

GCPL said that it had tak-
en calibrated price increases between 5 and 7 per cent over Firms will be circumspect
in Q4 to mitigate commodity the last few months to miti- when hiking product prices,"
inflation. gate input cost pressures. In Mayank Shah, senior catego-
NEHA ALAWADHI through hacking our systems but by kind of fraud. using the data from data breaches. While crude oil price has tea, the price hikes have been ry head, Parle Products, said.
New Delhi, 11 April scraping it from our platform prior to Rajshekhar Rajaharia, cybersecurity India does not have a specific law slipped 10 per cent in a even sharper, as much as 10- Analysts expect the focus
September 2019.” Similarly, regarding researcher who first tweeted about an dealing with data breach cases or penal month to under $63 a barrel, 15 per cent, sector experts on essential categories to
The past week saw massive data the data leak, first reported by alleged data breach at MobiKwik actions relating to the same as yet. The agri-commodities such as said, as firms fight to contain grow amid increasing lock-
breaches at two tech giants — Facebook CyberNews, 500 million LinkedIn data explained, “When a data breach like Personal Data Protection Bill, has been palm oil, copra and tea have commodity inflation. down curbs, a trend that was
and LinkedIn. While both admitted accounts had been leaked online, this happens, it leaves not just the com- pending in Lok Sabha since 2019. remained firm as global sup- Yet, analysts say that this visible last year during the
that customer data had been leaked, including name, address, email, phone pany whose data is leaked vulnerable, plies continue to be tight. may not be enough as input nationwide lockdown.
they said it wasn’t hacked from their number, and workplace information. but some of this data can be used to What is scraping? Palm oil is used to make cost pressures remain high. At the same time, in-
systems; rather, they have been victims “We have investigated an alleged set hack or access information and even Infrastructure and website security soaps, while copra is used to "Pricing action will remain home consumption will rise
of scraping. of LinkedIn data that has been posted money of individuals from other organ- firm Cloudflare explains what scraping make coconut oil. On the benign as companies adjust as people remain home-
Facebook data of 533 million users for sale and have determined that it is isations.” means. It is the process of using an other hand, a number of to realities such as rising bound, pushing up growth of
had leaked online, according to a report actually an aggregation of data from a For example, one can make a spoof application to extract valuable infor- crude-linked derivatives are Covid-19 infections and its packaged foods and staples.
by Business Insider on April 3. This number of websites and companies. It call using a mobile number leaked in a mation from a website. In contact important inputs for FMCGs impact on sentiment. Personal care and out-of-
included the data of 6 million users does include publicly available mem- data breach, call a payment firm or scraping, which is what has happened including linear alkyl ben- Companies will not want to home categories, on the oth-
from India, along with their phone ber profile data that appears to have bank’s IVR, which will recognise the at LinkedIn, the entity responsible has zene (LAB) and high-density hurt demand by increasing er hand, will take a hit, sector
numbers, Facebook IDs, full names, been scraped from LinkedIn. This was spoof number as registered. Secondly, possibly scraped locations like an polyethylene (HDPE). prices significantly at this analysts said.
locations, birthdates, bios, and, in some not a LinkedIn data breach, and no pri- most payment companies and banks online employee directory. In doing so, LAB is used in making point," G Chokkalingam, On Sunday, India crossed
cases, email addresses. vate member account data from ask for the last four digits of your debit “a scraper is able to aggregate contact detergents and constitutes founder and managing direc- the 1.5-lakh-mark in daily
India accounts for 410 million LinkedIn was included in what we’ve or credit card to verify you. That num- details for bulk mailing lists, robo calls, around 60-70 per cent of the tor, Equinomics Research Covid-19 cases, with states
Facebook users, among its largest mar- been able to review,” LinkedIn said in ber has also been leaked, linked to your or malicious social engineering latter’s input cost. HDPE is and Advisory, said. such as Maharashtra,
kets. In response, Facebook said, “It is a statement. The risk in a data breach, number in the data breach. Hence, attempts. This is one of the primary used in packaging material Companies endorse this Karnataka, Uttar Pradesh
important to understand that mali- big or small, is the ripple effect it causes unscrupulous elements can access and methods that both spammers and for all essential consumer view. and Kerala contributing to
cious actors obtained this data not and leaves users vulnerable to other even steal your financial data or money scammers use to find new targets”. items from soaps to deter- "I don't think firms, bulk of the case load.
gents, hair oils, creams, whether in food or non-food, Maharashtra, the worst-hit
shampoos and toothpastes. can take sharp price hikes. state, has already put strin-
Packaging costs of these While demand in rural areas gent curbs in place to curtail

Staying grounded: Flyers shelve travel

products constitute 15-20 per remains robust, purchasing the spread of the virus,
cent of overall production power is limited in the hin- including a weekend lock-
cost for companies. terlands. Urban areas, on the down, closure of non-essen-
FMCG firms have quietly other hand, are seeing a tial retail stores and night

itineraries, flight loads slide below 100 increased product prices surge in Covid-19 infections. curfew.

ANEESH PHADNIS last minute owing to weaker than February (1,741,013) and
Mumbai, 11 April demand. The number of daily March (1,814,867).
departures from Mumbai has The cap on flight capacity
The average number of declined to 210 from 240, was hiked from 70 to 80 per
passengers per flight fell following announcement of cent in December, and
below 100 for four the new restrictions. airlines subsequently
consecutive days last week, as Inbound traffic to Pune increased the number of
Maharashtra introduced tight has also slipped and most flights. The government has
restrictions. flights to Shirdi have been decided to continue with the
Travel demand has been cancelled as places of 80 per cent cap till April-end.
under pressure since March, religious worship remain Civil Aviation Minister
and while the number of closed. PANDEMIC BLUES Hardeep Singh Puri had cited
passengers per flight had “Industry-wide flight Date Passengers Total Average passengers the decline in passengers and
slipped to under 100 on three bookings have declined close flown departures per flight introduction of compulsory
occasions last month, last to 40 per cent, as people put April 1 253,008 2,319 109.1 testing as a reason for
week’s decline indicates travel plans on hold. Various continuation of the cap.
further weakening of states have introduced their April 2 259,427 2,378 109.0 While bookings have slowed
demand. Flyers are deferring own travel protocols and April 3 253,716 2,346 108.1 down, there is optimism
trips, and airline and travel there are night curfews that April 4 275,010 2,340 117.5 among travel trade regarding
executives say booking have led to confusion among April 5 248,673 2,385 104.2 leisure trips.
volumes have slumped 30-40 travellers,” said Jyoti Mayal, “There has been a slight
April 6 213,475 2,269 94.0
per cent. president of the Travel Agents increase in flight
Maharashtra’s new Covid Association of India. April 7 213,525 2,269 94.1 cancellations as consumers
restrictions came into effect An executive of a private April 8 204,715 2,236 91.5 are aware of the rising cases.
last Monday. Malls, airline said that customers, April 9 224,865 2,317 97.0 Customers are now looking to
multiplexes and markets are especially from Maharashtra, Source: Ministry of Civil Aviation book closer to the travel date,
closed from Monday-Friday, were on a wait and watch and prioritising health and
with a lockdown being mode. “There is uncertainty booking cancellations, given executive said most bookings safety measures while
imposed on weekends. on whether the lockdown will that there are now restrictions were now for travel within a exploring accommodation
Other states, including end in April or will continue on the number of guests at month. options at destinations.
Delhi, have also imposed in May. A few passengers have such events.” According to Ameya Joshi, Destinations at drivable
curbs, implementing a night cancelled their trips to Forward bookings, which founder of aviation blog distances as well as off-beat
curfew or mandated RT-PCR Maldives on account of the had picked up in January and NetworkThoughts, the destinations are still
tests for incoming same fear. Udaipur was seeing February, have shrunk once number of air passengers preferred,” said Sabina
passengers. Airlines have good demand thanks to again to under 10 per cent of flown in the first seven days of Chopra, co-founder and chief
begun clubbing flights in the weddings but there have been the total volume. An airline April (1,716,834) was lower operating officer of Yatra.

Sterling Holiday to have 5,000 APPOINTMENTS

rooms in inventory in 4 years
PRESS TRUST OF INDIA and Rishikesh,” Ramesh Ramanathan, chair-
New Delhi, 11 April man and managing director, told PTI.
On the planned investment, Ramanathan
Sterling Holiday Resorts is looking to take the said: “Our unique hybrid model enables us to
total number of rooms in its inventory to expand using an asset light approach. Our
5,000 by 2025, as part of robust growth plans investments are into sales, marketing and dis-
going forward, according to a top company tribution that enable optimal capacity utili-
executive. sation.”
It has over 2,400 rooms in over 35 resorts, The company has also ventured into sec-
including Sterling Nature Trails. ondary and tier-II markets, he added.
“Sterling has aggressive expansion plans Sterling's hybrid model includes member-
and aims to double its inventory from the cur- ships as well as the hotel segment businesses
rent 2,400-plus rooms to 5,000 rooms by 2025. like free independent travelers (FITs), confer-
In line with this, over the last one year, Sterling encing, weddings, re-unions and leisure
has opened resorts in Guruvayur, Thekkady groups, Ramanathan said.
4
>
NEW DELHI | MONDAY, 12 APRIL 2021

New Delhi/Mayur Vihar, P 35&36,

Prabhi Estate, Pandav Nagar,Acharya FEDERAL BANK Business Standard
YOUR PERFECT BANKING PARTNER DEMAND NOTICE
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NOTICE FOR PRIVATE SALE OF GOLD Printed and Published by Nandan Singh Act.) read with Rule 3 (1) of the Security Interest (Enforcement) Rules, 2002 (the said Rules). In exercise of powers conferred under
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the following Gold loan accounts, with the under mentioned branches of the Bank, which Private Limited and printed at The Indian
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are overdue for redemption and which have not been regularized so far in spite of repeated Express (P) Ltd. A-8, Sector-7, Noida,
hereby given, once again, to the Borrower(s) to pay within 60 days from the publication of this notice, the amounts indicated herein
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New Delhi/Mayur Vihar, P 35&36, Mukesh Sharma 14786100023082 published at Nehru House, 4 Bahadur due as on date of Demand Notice and security offered towards repayment of loan amount are as under:-
Prabhi Estate, Pandav Nagar, Shah Zafar Marg, New Delhi 110002 Name of the Borrower (s) / Demand Notice Date and Amount Description of secured asset (immovable property)
Raj Kumar 14786100023116 Guarantor (s)
Acharya Niketan Market, New Delhi- Editor : Shyamal Majumdar 05-April-2021 Rs.29,57,914/- All that piece and parcel of the property being : Unit No-25096,
110091 Mr. Vikas, Global Era Solution, (Rupees Twenty Nine Lakh Fifty Seven admeasuring 91.50 sq. mtrs. ,2Bhk 24Th Floor, Block
Mrs. Neha Deval (Prospect No. Thousand Nine Hundred Fourteen Only) - L 14Th Avenue, Gc- 14 Gaur City -2 Greater Noida, Noida,
Place: NEW DELHI Branch Manager RNI NO. 57376/1994
IL10042950) Uttar Pradesh, India, Pincode:-201301
Date: 08.04.2021 The Federal Bank Ltd. Readers should write their feedback at Mr. Ramesh, Mrs. Krishna, 05-April-2021 Rs.13,78,929/- All that piece and parcel of the property being : Prop No- A-116,
feedback@bsmail.in (Prospect No. IL10024741) (Rupees Thirteen Lakh Seventy Eight admeasuring 41.81 sq. mtrs. , 2nd Floor, Gulab Singh,
Ph. 011-23720202, Fax :+91-11-23720201 Thousand Nine Hundred Twenty Nine Only) Uttam Nagar, West Delhi, Pincode:-110059, India
Mr. Ritu Raj, Mrs.Karuna, 05-April-2021 Rs.27,40,601/- All that piece and parcel of the property being : Prop-K-6/39 A,
For Subscription and Circulation
(Prospect No. 939408) (Rupees Twenty Seven Lakh Forty Block - K-6, admeasuring 41.8064 sq. mtrs. , Gali-4, Mohan
Garden, Uttam Nagar, Pincode:-110059, Delhi, India
enquiries please contact:
Thousand Six Hundred One Only)
Ms. Mansi Singh
Mr.Shafi Ahmad, Mrs. Smriti 05-April-2021 Rs.23,11,540/- All that piece and parcel of the property being : RZH 108 A 108
Head-Customer Relations
Sharma, (Prospect No. (Rupees Twenty Three Lakh Eleven B, Gali No.-3, F.F. RHS FRONT RAJ NAGAR 2 PALAM
COLONY, South West Delhi, Delhi, INDIA, 110056
Business Standard Private Limited.
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H/4 & I/3, Building H,Paragon Centre, Opp.
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(Prospect No. IL10038278) (Rupees Two Lakh Seventy Nine admeasuring 39.11 sq. mtrs. ,Upper Ground Floor, Lig Back
Thousand Six Hundred Sixty Four Only) Side Rhs Plot No.-149 Block - C, Shalimar Garden Extn. 2,
Mumbai - 400013
E-mail: subs_bs@bsmail.in Ghaziabad, Uttar Pradesh, India, Pincode:-201001
“or sms, REACHBS TO 57575 If the said Borrowers fail to make payment to IIFL HFL as aforesaid, IIFL HFL may proceed against the above secured assets under
Section 13(4) of the said Act. and the applicable Rules, entirely at the risks, costs and consequences of the Borrowers. For, further details
please contact to Authorised Officer at Branch Office:- A-1C & A-1D, 2nd floor, Noida Sec16, Noida, Gautam Budh Nagar-201301/Or Branch
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DEMAND NOTICE
Under Section 13(2) of the Securitisation And Reconstruction of Financial Assets And Enforcement of Security Interest Act,
2002 (the said Act.) read with Rule 3 (1) of the Security Interest (Enforcement) Rules, 2002 (the said Rules). In exercise of
powers conferred under Section 13(12) of the said Act read with Rule 3 of the said Rules, the Authorised Officer of IIFL
Home Finance Ltd. (IIFL HFL) (Formerly known as India India Infoline Housing Finance Ltd.) has issued Demand Notices
under section 13(2) of the said Act, calling upon the Borrower(s), to repay the amount mentioned in the respective Demand
Notice(s) issued to them. In connection with above, notice is hereby given, once again, to the Borrower(s) to pay within 60
days from the publication of this notice, the amounts indicated herein below, together with further interest from the date(s)
of Demand Notice till the date of payment. The detail of the Borrower(s), amount due as on date of Demand
Notice and security offered towards repayment of loan amount are as under:-
Name of the Borrower (s) / Demand Notice Date and Amount Description of secured asset (immovable property)
Guarantor (s) 05-April-2021 Rs.3,20,766/- All that piece and parcel of the property being : Plot No. 11
Mr. Ramesh Dhabhaei, (Rupees Three Lakh Twenty (East Part), admeasuring 106.16 sq. yds., Deepak
Mrs. Sunita Dhabhai, Thousand Seven Hundred Sixty Colony, Sheopur, Near Vedansh Ashram, Pratap
(Prospect No. 712084) Six Only) Nagar, Jaipur, Rajasthan, 302025, India.
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Mrs. Meera Devi Rana, (Rupees Eleven Lakh Eighty Two admeasuirng 760 sqft in Second Floor, Plot No -
(Prospect No. Thousand One Hundred Fifty G-2, Manglam City, Manglam City Gram Hathoj
IL10063417) Six Only) Kalwar Road , Jaipur, Rajasthan
If the said Borrowers fail to make payment to IIFL HFL as aforesaid, IIFL HFL may proceed against the above secured
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Place: Jaipur Date: 12-04-2021 Sd/- Authorised Officer For IIFL Home Finance Ltd. (IIFL HFL)
>
NEW DELHI | MONDAY, 12 APRIL 2021 ECONOMY & PUBLIC AFFAIRS 5

SBI’s latest target: Real-world data to decide vax commercial nod

~4-trn SME loan CALLING THE SHOTS SOHINI DAS
Mumbai, 11 April
Two such vaccines
Covishield, made by the Serum
are Typically, from the laboratory to
the market, vaccine development
regulator. This does not happen oth-
erwise. It is due to the emergency,

book by March ’24 91 mn Indians who have received

Covishield, against Covaxin’s 8.7 mn The drug regulator may consider
real-world data from the ongoing
Institute of India (SII), and Covaxin
by Bharat Biotech. India has vacci-
nated 100 million with these two
takes years. During the pandemic,
the entire process from pre-clinical
trials to the emergency-use authori-
thanks to the pandemic, that this
process of review was accelerated
and real-time,” said another senior
ABHIJIT LELE book has grown by an estimat- 32,449 Participants on whom Covid-19 vaccinations to grant faster vaccines. Around 91 million have sation has taken around a year. official at the Central Drugs Standard
Mumbai, 11 April ed ~24,000 crore and market AstraZeneca’s interim safety and commercial marketing approval to received Covishield, developed by Phase 2 clinical studies involving Control Organisation. SII is likely to
share has surpassed 15 per efficacy analysis was based on the vaccine candidates, according to AstraZeneca and Oxford University. over 1,000 people assess the apply for commercial marketing nod
State Bank of India (SBI) plans cent, Narayan said. sources in the know. Nearly 8.7 million have got Covaxin, immunogenicity of a vaccine. Phase by the end of April for Covishield.
to overhaul its business model Narayan said the bank felt 25,800 Participants who received Commercial nod would mean according to the CoWIN dashboard. 3 clinical studies, conducted over a It has been submitting data to the
and strategies for loans to the need to reorient strategy Covaxin or placebo in a 1:1 ratio, that the manufacturer can sell it in “This is sufficient data to show few thousand people and over a peri- drug regulator from the internation-
micro, small, and medium to look at ways to improve its showing Bharat Biotech’s vaccine the private market with a specified how the vaccine works in individu- od of time, assess the efficacy. al trials conducted by AstraZeneca,
enterprises (MSMEs) to position in light of the huge candidate was well tolerated maximum retail price. Vaccines are als, whether it generates the desired The data is analysed once there as well as data from Indian bridging
increase its market share to 20 potential of this segment. It typically sold through hospitals or immune response, protects against are a good number of disease cases trials and the ongoing vaccinations.
per cent by March 2024, from will rope in a consultant to 1,600 People who enrolled for SII’s paediatricians for administering severe disease, and causes any seri- in the sample. This helps to analyse Vaccine makers have been submit-
over 15 per cent at present. redesign the operating model Phase 2 and 3 bridging study doses to infants or young chil- ous adverse event. Marketing autho- if vaccinated or placebo receivers had ting data on adverse events periodi-
This will require SBI to grow and implement the new dren. Vaccine makers are now risation (allowing private sales) thus, contracted the disease. The Covid-19 cally with the drug regulator.
its SME loan strategies 79% Vaccine efficacy of not allowed to commercially can be granted based on this real- pandemic has accelerated this They would also need to compile
book to ~4 tril- FOCUS AREAS
lion, from the  Improve turnaround time, ing growth
to achiev- AstraZeneca US
Phase 3 trial of
sell it as they have been grant-
ed ‘restricted emergency-use’
world data,” said a senior govern-
ment official.
process as many people are being
infected with the disease. So
the data on immune responses and
RT-PCR-positive Covid cases, as well
current ~2.5 in the AZD1222 preventing approval, which allows Commercial approval in this way, ‘unblinding’ the data to assess a vac- as hospitalisation events from those
simplify process, productivity
trillion. MSME symptomatic them to sell only to the based on the real-world data that is cine’s efficacy is taking a shorter time. who have already been vaccinated.
Saloni  Scale up supply-chain segment, Indian government available, will probably be a faster “Vaccine makers have been sub- Senior government officials,
and vendor financing Covid-19 and
Narayan, while 100% efficacy at preventing which, in turn, dis- process than through the traditional mitting documents right from the however, pointed out that a ‘rushed’
deputy man-  Digitise operating model ensuring tributes the route in that the analysis of the data beginning and there has been a commercial approval may create a
hospitalisation
aging director for credit guarantee for SMEs asset qual- vaccines. from clinical trials could be faster. rolling review of the process by the demand-supply mismatch.
(retail busi-  Improve bank’s cluster ity is

Lockdown in Delhi
ness), SBI, financing portfolio main-

Insurers brace for rise

said the tained.
bank’s market Around
share has grown in deposits to 2,300 corporate houses bank

in Covid policy claims

23 per cent and in advances to with SBI, and the ecosystem

if hospital system
20 per cent. But the worri- is huge for vendor and retailer
some part is the secular financing, and cluster financ-
decline in the market share of ing, where too the bank needs
the SME book. In fact, it has to enhance its presence. SBI
shrunk from 20 per cent five has conducted an assessment SUBRATA PANDA
THE RESURGENCE

crashes: Kejriwal
years ago. of pain points in turnaround Mumbai, 11 April
However, FY21 has been time and why MSME cus- Figures as of March 10, 2021
better for this segment for var- tomers do not choose SBI over The unprecedented rise in Covid-19 infections
ious reasons, including the others. “We want to become in the country, which many are terming as the Total reported
claims 1,014,285
guaranteed emergency credit the bank of choice in the seg- second wave, has also resulted in a rise in Covid-
line (GECL). The SME loan ment,” he said. related claims for general and health insurance
Reported claims
Says 4th wave more dangerous than the previous ones companies as hospitalisations have gone up.
The insurers have received more than a mil- settled by insurers
865,968

SBI collected ~300 cr from zero PRESS TRUST OF INDIA lion Covid-related claims as of April , 2021.

balance accounts in 5 yrs: Study New Delhi, 11 April

‘Tika Utsav’ is start According to the data compiled by General
Insurance Council, the reported claims total

T
~14,821 cr ~7,956 cr
Several banks, including SBI, have been imposing excessive charges
on certain services provided to poor persons having zero-balance or
he Covid-19 situation
in Delhi is “very seri- of second big war 1.014 million, amounting to more than ~14,800
crore. Of this, 865,968 claims worth ~7,956 crore Total amount
of claims
Total
amount
on Covid, says Modi
Basic Savings Bank Deposit Accounts (BSBDA), a study by the IIT- ous” with 10,732 cases have been settled. This is almost 85 per cent of
Bombay has revealed. It observed SBI’s decision to levy a charge of of infection reported in the the reported claims. According to the data, the settled
~17.70 for every debit transaction beyond four cannot be considered last 24 hours, the highest average reported claim size is to the tune of
as “reasonable.” The imposition of service charges resulted in since the pandemic began, Asserting that the ‘Tika not be much educated ~1.46 lakh but the average claim that insurers
undue collections to the tune of over ~300 crore from among nearly Chief Minister Arvind Utsav’, a vaccination drive should be helped in getting are settling is ~91,953.
120 million BSBDA holders of SBI during the period 2015-20. PTI Kejriwal said on Sunday as he between April 11 and 14, the vaccine, he said, and also At the end of July 2020, only 81,000 Covid According to experts, in Q1FY21, general and
issued a stark warning —do marks the beginning of the asked people to help those claims were filed with insurers. That number health insurers saw few claims but the scenario
not step out of homes unless second big war on Covid-19, Covid-19 patients in getting doubled in a month to 160,000 and breached changed in Q2 as insurers saw a surge of Covid
it is urgent. Prime Minister Narendra treatment who may lack the 475,000-mark by end-October. By mid- claims, mostly cashless. In Q3, the rise in claims

Exporters remain “The fourth wave is more

dangerous than the previous
wave. The government
Modi on Sunday made
several suggestions to people
on tackling the virus and
resources or information. By
wearing masks, people can
save themselves and others,
November, the figure had surpassed 576,000,
reaching 664,488 by early December, amount-
ing to ~9,989.89 crore. Since December, the pace
was unprecedented as insurers were paying
cashless and reimbursement claims from the
previous quarter. In Q4, insurers saw a contin-

optimistic with is closely monitoring the

situation,” he told a press
conference.
urged them to focus on
personal and social hygiene.
In a statement, he urged
Modi added. He also asked
families and members of the
society to take lead in setting
of rise in Covid claims slowed, in sync with a
fall in the number of fresh cases. By end-
February, the number of claims reported to gen-
uing rise in claims outgo as not only Covid-
related but non-Covid claims increased.
Bhabatosh Mishra, director, underwriting,

weaker rupee and In just a few weeks, Delhi

has gone from near-normal-
cy — with less than 100 cas-
people to keep four things in
mind, including “each one,
vaccinate one”, “each one,
up micro containment zones
in case of anyone getting the
infectious disease, saying
eral and health insurers had breached the
900,000-mark. As of March 15, general and
health insurers got 938,640 Covid claims,
products & claims, Max Bupa Health Insurance,
said, “In the last seven days, Covid claims com-
ing in the form of “cashless claims” have more

low interest rates es reported on February 16

— to an exploding pandem-
ic, a grim reminder that the
treat one” and “each one,
save one”.
Elderly
this is an important way to
fight the disease in a densely
populated country like India.
amounting to ~14,092 crore. Insurers had settled
796,247 claims, amounting to ~7,418.62 crore.
“We have seen the number of claims rising
than doubled for us. It is rising at a very fast
pace. Initially, in the second wave, the number
of Covid claims did not match the number of
In its biggest drop since ment demand. The survey of virus is continuing to people or “Our success will be decided for us and this is across the country, but the cases. It is fast catching up with the trends.”
August 2019, the Indian professional forecasters extract its toll. those by how much aware we are majority is coming from Maharashtra. It is a “To make matters worse, network providers
rupee fell 105 paise against released by the RBI said that Kejriwal said the current who about micro containment cause for concern for us because the cost was have started refusing cashless claims to Covid
the US (United States) dollar India’s merchandise exports fourth wave of the pandem- may zones. Our success will be not priced in the product but we are keeping a patients. The insurers are ending up paying
on Wednesday, soon after the and imports were expected to ic in the city was “very dan- decided by us not stepping close eye on how quickly the vaccines are rolled more. The protocol for Covid treatment was
Reserve Bank of India (RBI) grow by 15 per cent and 24 per gerous” and was spreading outside homes when not out. We are assessing the impact of such claims largely established but we are seeing in many
announced its monetary pol- cent, respectively, in 2021-22. at such a rapid rate that it needed. Our success will be on our loss ratios. The premiums may not go claims very high usage of antibiotics. The aver-
icy. By Friday noon, the The World Trade has left many people baf- decided by that those up immediately for retail policies but for group age claim size has not gone up but the trend is
rupee had fallen to ~74.94 to Organization (WTO), howev- fled. “Cases have escalated eligible for the vaccine get health policies, the prices are revised on a case- disturbing. The Covid claims have harmed our
a US dollar. This can make er, does not expect the world in a big way in the last 10-15 it,” he added. PTI to-case basis,” said a senior private sector insur- loss ratios in the first wave itself and the ques-
exports more rewarding, trade to reach the pre-pan- days. And, in the past 24 ance executive. tion is how long can we sustain,” Mishra said.
imports more expensive and demic trend till the end of hours, the city has recorded

Centre faults three states over preparedness

boost customs revenues. 2022. Its recent forecast said 10,732 cases. The situation
However, it may make rein- the volume of world mer- is very serious.”
ing in inflation below 6 per chandise trade was expected This is the highest single-
cent rather difficult. to increase by 8 per cent in day spike in Delhi since the
The RBI, however, does 2021 after falling 5.3 per cent outbreak of the pandemic. Limited health workers, lack of testing flagged in Maharashtra, Chhattisgarh and Punjab
not seem too perturbed by the in 2020, continuing its The previous highest ever
prospects of inflation. It rebound from the pandemic- single-day spike in Delhi — PRESS TRUST OF INDIA tainment operations and contact testing, hospital infrastructure and
expects the Consumer Price induced collapse that bot- 8,593 cases — was reported New Delhi, 11 April tracing, skewed testing and shortage vaccination, as reported by the
Index (CPI) inflation to be 5.2 tomed out in the second on November 11, 2020. of health workers. Authorities need teams, has been shared for suitable
per cent, 5.2 per cent, 4.4 per quarter of last year. Trade Central teams have reported non- to work in these areas, it said. Of the corrective actions by state or district
cent and 5.1 per cent in the growth should then slow to 4 adherence of Covid-19 appropriate 50 districts most affected by Covid- administrations.
four quarters of the current per cent in 2022 as effects of behaviour in almost all of the 50 19, 30 are in Maharashtra, 11 in Thirty central teams have been
financial year. Its focus is the pandemic will continue most-affected districts in Chhattisgarh and nine in Punjab. deployed for the most-affected dis-
mainly on enabling economic to be felt and this pace of Maharashtra, Chhattisgarh and In a letter to the states, Union tricts in Maharashtra, Bhushan said.
growth by retaining interest expansion still leaves trade Punjab, the Union health ministry Health Secretary Rajesh Bhushan The ministry has written to the
rates at the below its pre- said, advising the states to more said the Centre has also taken note state highlighting that containment
same level and pandemic strictly enforce norms to prevent of issues related to vaccine availabil- operations were found to be sub-
maintaining its trend. The rela- spread of the coronavirus. ity, and required action to augment optimal in Satara, Sangli and
accommoda- tively positive On the basis of feedback from the supplies will be taken based on avail- Aurangabad districts, with less than
tive stance on short-term out- teams, the ministry has written to able stock. satisfactory perimeter control and
liquidity. It look for global the states highlighting the areas of He said a brief summary of key lack of active surveillance for influen-
expects the real trade is marred concern, including sub-optimal con- performance indicators related to za like illness cases.
gross domestic by regional dis-
product growth parities, con-
for 2021-22 to
EXIM MATTERS tinued weak-
be 10.5 per
cent. Most ana- T N C RAJAGOPALAN
lysts find this
ness in services
trade, and lag-
ging vaccina-
estimate rather conservative. tion timetables, particularly
Bengaluru lone bright spot in direct tax mop-up
Welcoming the RBI’s lower in poor countries. Covid-19 DILASHA SETH digital technologies such as artificial
interest rate regime intended continues to pose the greatest New Delhi, 11 April TAXING AFFAIR (~ cr) intelligence, cloud revolution, automation,
at supporting growth, the threat to trade outlook, as 2019-20 2020-21 % chg and virtual reality, and are changing
Chairman of Engineering new waves of infection could Bengaluru, which houses global and Indian the way businesses operate. These have led
Exports Promotion Council easily undermine any hoped- IT giants, has posted 7.3 per cent growth Mumbai 320,000 295,000 -8 to an uptick in revenue, supported by lower
said that steps need to be tak- for recovery, said the WTO. in direct tax collection in the fiscal year Bengaluru 109,000 117,000 7 operational costs and work from home
en for full transmission of The second wave of pan- 2020-21 even as several key jurisdictions, Delhi 146,000 117,000 -20 for tech sector employees.
lower interest rates to demic has forced many states including Delhi and Chennai, faced a “Additionally, the city is home to new-
exporters and end-customers. to impose night curfews and double-digit decline. Chennai 71,000 60,000 -15 age digital companies to which the equali-
On the external sector, the restrain several economic As overall direct tax collection, net of Hyderabad 57,000 55,000 -4 sation levy applies, adding to the kitty
RBI said that global growth activities. The prospects of refunds, declined 10 per cent in 2020-21 to Pune 57,000 50,000 -12 of corporate tax collection,” added
was gradually recovering increase in crude oil prices, ~9.45 trillion year-on-year, Bengaluru Jhunjhunwala.
from the slowdown, but it weakening foreign fund accounted for a 12.3 per cent share in coun-
Ahmedabad 50,000 46,000 -8 Direct tax collection, excluding refunds,
remained uneven across inflows, strengthening US try’s collection. Kolkata 41,000 39,000 -5 declined below 10 trillion for the first time
countries and was supported dollar and rising bond yields India’s IT hub saw direct tax collection, Chandigarh 43,000 37,000 -14 in four years during 2020-21. However, col-
by ongoing vaccination in the US are also seen as net of refunds grow to ~1.17 trillion in FY21 lection exceeded the revised budget esti-
Bhopal 23,000 17,000 -26
drives, sustained accom- cause for concern. The RBI, from ~1.09 trillion in the previous year. mate by 4.5 per cent. The budget estimates
modative monetary policies however, sees upsides in the “Bengaluru is the only jurisdiction post- Overall 1,050,000 945,000 -10 were revised lower from ~13.19 trillion in
and further sizeable fiscal pace and wider coverage of ing an increase. It was relatively unaffected Source: Govt sources view of the economic impact of the pandem-
stimulus. The Organisation vaccination, the gradual by the pandemic because it houses e-com- ic. Collection breached revised estimates for
for Economic Co-operation release of pent-up demand merce giants. Rather, businesses of online collection. Mumbai, which is India’s largest ing increased the global demand of IT prod- the first time in four years.
and Development (OECD) and the investment-enhanc- platforms have grown during this time. jurisdiction, reported a 7.8 per cent decline ucts, resulting in higher tax collection from The government issued more refunds —
projected the world output to ing and growth-supportive Moreover, these IT players get a lot of busi- in net collection at ~2.95 trillion. Delhi and the jurisdiction. During last year, Bengaluru 41 per cent higher — than last year and
reach its pre-pandemic level reform measures taken by ness from overseas clients, which diversifies Chennai reported a 20 per cent and 15 per attracted huge capital from domestic and it provided relief to assessees. Personal
by mid-2021, though it will be the government. their earnings,” said a government official. cent decline, respectively. foreign sources,” said Mohan. tax collection, including refunds, was 2.5 per
largely contingent on the Overall, exporters are He added: “Even Hyderabad, which Rajat Mohan, partner, AMRG Associates, Sandeep Jhunjhunwala, partner, Nangia cent higher, a development that was
pace of vaccine distribution happier with a weaker rupee, houses several IT players, has performed said during the pandemic, IT sector and Andersen LLP, said during FY21, technology not expected.
and its efficacy against low interest rates, and better well, posting a marginal decline.” pharmaceutical were the only ones driving companies, especially in the services verti- About 45 per cent of direct tax revenue
emerging variants of the order books. Hyderabad reported a 4 per cent decline growth, whether it was equity markets, jobs, cal, had a tailwind on account of newer proj- collection comes from advance tax, 35 per
virus. Stronger external with a collection of ~55,000 crore in FY21 GDP, or tax collection. ects centring on digitisation and enabling cent from tax deducted at source, and the
demand should support Email : against ~57,000 crore a year earlier. “Bengaluru, being the Silicon Valley of businesses technologically. remaining 20 per cent from self-assessment
India’s exports and invest- tncrajagopalan@gmail.com Bengaluru bumped up India’s direct tax India, has stood up to the challenge of meet- “There has been an upsurge in the use of and recovery.
6 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | MONDAY, 12 APRIL 2021

India hits out at US Pension FDI cap may be hiked to 74%

on linking climate
PRESS TRUST OF INDIA from the government as they, including
New Delhi, 11 April BILL LIKELY IN MONSOON SESSION states, are the biggest contributor to the
> The FDI limit in pension fund was raised corpus. The PFRDA was established
The government may hike foreign to 49% in 2015 for promoting and ensuring the orderly
direct investment (FDI) limit in the > This results in foreign capital inflow of growth of the pension sector with suf-

issues to recovery
pension sector to 74 per cent and a Bill ~26,000 crore in the last 5 years ficient powers over pension funds, the
in this regard is expected to come in > Bill on new amendment may come in the central record-keeping agency and oth-
the next Parliament session, according monsoon session or winter session er intermediaries. It also safeguards the
to sources. depending on various approvals interest of members.
Last month, Parliament approved a The National Pension System (NPS)
> The new Bill may contain separation of
Bill to increase FDI limit in the insur- was introduced to replace the defined
NPS Trust from the PFRDA
ance sector from 49 per cent to 74 per benefit pension system. NPS was made
Says imposing stringent climate conditionalities unfair cent. The Insurance Act, 1938, was last
> The powers, functions, and duties of the mandatory for all new recruits to the
amended in 2015, which raised FDI lim- NPS Trust may come under a charitable central government service from
SUBHOMOY BHATTACHARJEE it to 49 per cent, resulting in foreign trust or Companies Act January 1, 2004, (except the armed
New Delhi, 11 April ‘GREEN COLONIALISM’ capital inflow of ~26,000 crore in the forces in the first stage) and has also
past five years. Currently, the FDI in the pension Pension System Trust) Regulations been rolled out for all citizens with

I P HARISH, ADDITIONAL
ndia-US relations seems to have been Amendment to Pension Fund fund is capped at 49 per cent. Besides, 2015, may come under a charitable trust effect from May 1, 2009, on voluntary
hit by some hiccups lately. Close on the Regulatory and Development sources said, the amendment Bill may or the Companies Act, they said. basis. The government had made a
heels of India registering a protest SECRETARY (ECONOMIC Authority (PFRDA) Act, 2013, seeking contain separation of NPS Trust from The intent behind this is to keep conscious move to shift from the
against a US Navy ship’s passage through RELATIONS), MINISTRY to raise FDI limit in the pension sector the PFRDA. NPS Trust separate from the pension defined benefit, pay-as-you-go pension
its exclusive economic zone without prior may come in the monsoon session or The powers, functions and duties regulator and managed competent scheme to defined contribution pen-
permission, New Delhi has strongly criti- OF EXTERNAL AFFAIRS, winter session depending on various of the NPS Trust, which are currently board of 15 members. Out of this, the sion scheme, NPS, due to rising and
cised Washington’s attempt to link climate SLAMMED EFFORTS TO approvals, sources said. laid down under the PFRDA (National majority of members are likely to be unsustainable pension bill.
issues with economic recovery in the wake
of the Covid-19 pandemic at the forthcom-
“ESTABLISH A NEW
ing G20 talks. GOALPOST OUTSIDE THE PARIS
FRAMEWORK IN THE G20 FOR WHICH
Rupee correction was ‘Axis Bank JV to
US treasury secretary Janet Yellen has
been championing the linkage, and India feels
that this is uncalled for.
THERE WAS NO NEED”

long due, say dealers drive volumes’

P Harish, additional secretary (economic
relations), ministry of external affairs, said
India has been the best performer in the G20 SANJEEV SANYAL,
group when it comes to fulfilling the Paris
climate agreement. He slammed efforts to
PRINCIPAL PRASHANT TRIPATHY, MD and CEO of Max Life Insurance, is confident the
“establish a new goal post outside the Paris ECONOMIC ANUP ROY eign investors. alliance with Axis Bank is a mark of a new beginning for the company,
framework in the G20 for which there was ADVISOR IN THE Mumbai, 11 April The RBI’s guidance suggests that inter- both in terms of growth and better customer satisfaction. In an
no need”. est rates and bond yields will remain low. interview with Hamsini Karthik, Tripathy explains why savings products
He added, moreover, that there was no FINANCE MINISTRY, The sudden movement of the rupee — The renewed surge in coronavirus has also would continue to propel growth in the near term. Edited excerpts:
consensus within the bloc on bringing in cli- SAID THE ATTEMPT TO post the monetary policy — is not a reason witnessed outflow from local equities,
mate and related issues over and above the
Paris agreement at the G20 discussions.
PUSH FOR A ‘GREEN to panic, said currency dealers. making India a less attractive investment
According to them, a correction was destination.
With Axis Bank becoming a stable Banca partner, what does it do to
Max’s growth potential?
Sanjeev Sanyal, principal economic advisor RECOVERY’ WITH STRINGENT overdue for the rupee that remained the “The rupee was the best performing Axis Bank has been with us for over a decade as a bancassurance
in the finance ministry, said there was a risk CONDITIONS WAS UNNECESSARY WHEN best performing currency in the region for currency on a weekly and monthly basis partner, under which we have serviced long-term savings and
of a ‘Green Colonialism’ spreading across the well over a month. among peers. But on a long-term basis, protection products to nearly 2 million customers. The closure of
world. Describing it as an attempt to push for
THE DEVELOPING WORLD WAS The rupee closed at 74.72 a dollar on given inflation at 5 per cent, and being a this transaction marks a new phase of growth and stability for Max
a ‘green recovery’ with stringent conditional- PARTICULARLY VULNERABLE ON Friday from its previous close of 74.60. It current account deficit country, India can- Life. The joint venture (JV) strengthens our brand. It brings Max Life
ities, Sanyal said that this was unnecessary ACCOUNT OF A GLOBAL HEALTH CRISIS had dropped 1.52 per cent against the dol- not remain best performing for long,” said on a par with the top three bank-sponsored life insurance firms.
when the developing world was particularly lar on April 7 after the Reserve Bank of Samir Lodha, managing director (MD) and
vulnerable on account of a global health crisis AND WAS TRYING TO RECOVER FROM IT India (RBI) announced its monetary poli- chief executive officer (CEO) of QuantArt, Some peers that are bank-led life insurers are trying to reduce their
and was trying to recover from it. cy, committing to buy ~1 trillion of bonds a treasury consultant firm. dependence on bancassurance. What is Max’s philosophy?
Harish and Sanyal made the comments at in the June quarter. Rather, the local currency’s strength Max Life is the one of the largest non-bank
a seminar organised by RIS, a Delhi-based whether the SDR issue was flagged at that A weak rupee goes well with the export was an “aberration, which has corrected life insurance companies, but with the Axis
think tank which examines trade and global meeting. narrative of the government, and is con- now,” Lodha added. Bank JV on its side, it now has the best of
financial issues. The seminar was meant to In recent weeks, the US administration of sistent with the RBI’s intervention strategy According to him, the rupee’s level, for both the worlds. Our bank relationships
examine the priorities for growth in the post- Joe Biden has pushed for a strong climate that prevented an now, depends on for- collectively bring about two-thirds of our
Covid world, which the G20 framework work-
ing groups could adopt.
agenda as part of the process of recovery from
the pandemic. The European Union has also
appreciation.
The central bank RUPEE MOVEMENT eign flows. It should
stabilise around these
sales and 55-60 per cent of that is
contributed by Axis Bank to our individual
Both countered the assertion by Federico supported the idea. accumulated more ~ vs $ (inverted scale) levels if the flows premium business. This JV will drive
Bonaglia, deputy director of OECD Yellen has linked the IMF’s expanded SDR than $100 billion in remain steady. He felt further momentum in not just overall
Development Centre, that avenues for pro- support with the rider that the recovery pro- just nine months, that if the flows dry greater volumes, but also superior customer
viding relief to the developing world should grammes should have a strong climate agen- mopping up inflows out, there would be experience with customised products.
be linked to their climate policies. da. Separately, in meetings in India, Biden’s even as the country pressure on the cur- Online is the highest growth engine for Max
India is also on the other side of the table special envoy on climate change, John Kerry, turned trade and cur- rency. Life. E-commerce accounts for 12 per cent of
from the US at the IMF on the proposed is learnt to have urged India to set a net zero rent account surplus At over $575 billion our policies, which has been growing over
expansion of the Special Drawing Rights emission goal in the next couple of decades, due to low import in reserves, the RBI PRASHANT TRIPATHY 50 per cent YoY. Our focus will not only be
(SDR). The IMF provides the SDR to member similar to what China and other countries demand and soft has enough means to MD & CEO, on strengthening the banca tie-ups, but also
countries, which they can convert against have done. oil prices. iron out volatility. Max Life Insurance nurture and grow our proprietary channels.
currencies like the US dollar, the euro, the Sanyal said that climate change was a seri- The rupee can slide Lodha said, if equi-
Chinese yuan or the Japanese yen, for a ous issue, but that it should not be confused a little more, but there ty markets correct, the At 24-25%, have value of new business (VNB) margins peaked?
Source: Bloomberg, CCIL
small price. with the immediate objective of economic would unlikely be a Compiled by BS Research Bureau rupee can witness sig- For the nine months ended December 31, 2020, Max Life’s margins
While India has in the past pushed for the revival post the pandemic. He said the link currency crisis, said nificant pressure. He went up to 25.9 per cent from 21 per cent in the year-ago period. The
expansion of voting rights of developing coun- between climate change and the pandemic dealers. In any case, they feel the RBI’s feels a movement towards 76 a dollar is VNB written during 9MFY21 rose 37 per cent YoY. Margin improve-
tries at the IMF — this would expand their was far from established since pandemics reserves are good enough to stabilise more likely. ment was led by a shift in business mix towards non-par savings and
SDR allocation as well — it fears that this is happen from time to time irrespective of cli- sudden volatility induced by a flight If the equity markets continue as they protection. Individual protection grew 54 per cent YoY and penetr-
not the suitable moment for it. Countries mate change. He added that the response to of capital. are, the rupee should ideally scale back to ation rose from 8 per cent in 9MFY20 to 10 per cent in 9MFY21. We
would be happy to draw on the Chinese ren- the pandemic should be science-based, and In the past, RBI governor Shaktikanta 73-74 levels, said currency dealers. will continue to drive margins by leveraging non-par savings and
minbi, strengthening Beijing's hold on the not one filled with rhetorical flourishes. Das vigorously defended India’s stance on Abhishek Goenka, MD of IFA Global, protection and tap new opportunities like health and retirement.
global currency market, it feels. Harish said even if carbon emissions accumulating reserves, citing a possible expects the rupee to be at 76.5 in the medi-
Instead, India has suggested extending the peaked in 2050, the net total of emissions of reversal of portfolio flows from emerging um term, as flows slow down and it cor- How do you see the mix between protection and savings evolving
G20’s debt service suspension initiative. So India will be less than that of China, the US or markets like India. rects some of its strength. in the next year?
far, the initiative has garnered only $5 billion the European Union. “It would not be correct Foreign investors poured in $30,296 bil- In the immediate term, the rupee could The industry has not been able to leverage as much as it should have
of liquidity support. The US, however, esti- to ignore the historic case load and the devel- lion in fiscal year 2020-21, in both debt trade in the range of 74.60-75.10 a dollar, around key offerings for protection, health, and retirement. Savings
mates that the SDR window will open $21 bil- opmental situation, where India’s per capita and equity. However, in April, they have according to Sriram Iyer, senior research will remain because Indians prefer to save and life insurance is seen
lion worth of liquidity support for the poor GDP is 5 per cent of that of the G7 countries, been net sellers. The reason for this is ris- analyst at Reliance Securities. as a safe vehicle. I think there’ll be a gradual progression towards
countries. and a fraction of the overall G20 per capita,” ing US bond yields, when Indian yields Rahul Gupta, head of research, curren- products with more protection, health, and retirement coverage
Finance minister Nirmala Sitharaman he pointed out. are heading down. cy, Emkay Global, said the upcoming Fed that are under-penetrated markets today. Though the pandemic has
attended the plenary meeting of the Constraining India’s options at this point The 10-year bond yields in India closed policy this week would be a crucial clue embedded this notion, penetration remains a long-term challenge.
International Monetary and Financial through extra conditionalities will impose a at 6.18 per cent in the fiscal year-end, but for the markets. The rupee, meanwhile, The mix of protection will progressively continue to increase.
Committee of the Board of Governors of the huge financial and developmental cost, has fallen to 6 per cent now. This has could trade at 72.25-73.25 on an immediate
IMF, last week. There is no information on Harish added. squeezed the arbitrage opportunity for for- basis, he added. More on business-standard.com

> FROM PAGE 1 (POSOCO), and the two exchanges to

launch the integrated DAM by the end of
They would buy only for time blocks of
next day when they really need that power
remarks on Sunday evening suggest that
stiff curbs will come in place after these
Cairn... of Edelweiss Research in his report.

Power... June this year.

The power trading market currently has
and at the same time meet their renewable
purchase obligation,” said Rajesh Kumar
two festivals.
Thackeray reviewed the current health
Another official pointed out with interna-
tional arbitration, it was difficult for Cairn Vedanta...
According to industry estimates, there are two platforms in India — Power Exchange Mediratta, director (strategy and regula- preparedness and directed the adminis- to invest in India. “India is an attractive
currently 19 gigawatt (Gw) of projects, India (PXIL) and Indian Energy Exchange tory affairs), IEX. tration to increase the number of beds, investment destination. Slowly, foreign A Vedanta spokesperson declined to com-
which do not have any long-term power (IEX). IEX holds 95 per cent of the day- The ministry also proposed a monitor- increase availability of oxygen by setting direct investment conditions for the energy ment.
purchase agreements. There are 31 Gw of ahead spot power trading market. PXIL ing committee would be set up to oversee up a plant, and complete vaccination of all sector are being relaxed. But in the arbi- The expression of interest is looking at
RE power projects under different stages holds 40 per cent market share in the term- the implementation of the RE market. medical personnel. There was a discussion tration scenario and threats of asset potential companies manufacturing liq-
of construction; 21 Gw are under bidding. ahead market and renewable energy cer- There are also plans to create a ‘market on imposing restrictions and penalties for seizure, it will be difficult for Cairn to invest uid-crystal display (LCD), organic light-
“Our nation has been witnessing tificates. These exchanges have several coupling operator’ in the near future. It non-compliance. here,” he added. emitting diode (OLED), active-matrix
remarkable transformation towards sus- power trading mechanisms — term-ahead, would be an independent entity under A standard operating procedure related India is expecting a stay on the award organic light-emitting diode, and quantum
tainable energy economy, with an increas- green-term ahead, day-ahead, intraday, which the DAM of all exchanges would be to lockdown is being formulated to control from a lower Dutch court anytime now. dot LED-based displays for TVs, PCs, and
ing share of clean and green energy in its and real-time market. DAM entails trading merged. The entity would receive bids the infection which is spreading fast in the Based on that, it will seek a stay on the mobile devices. A final call will only be tak-
mix. With the aim of having multiple of power a day before. Sellers are power from all exchanges and clear them at once. state. Task force members also recom- implementation of the award in other juris- en after the government comes out with a
options for market participants in RE, generating stations and buyers ranging “The entity can be POSOCO, which can mended that housing societies could start dictions such as the UK, Canada, the US, final policy incentivising such large invest-
which would be competing against each from power distribution companies (dis- function as a market coupling operator. quarantining patients with mild symptoms and France, which will protect India from ments.
other, it has been decided to introduce inte- coms) to industrial and commercial con- However, at present, we may go ahead by arranging oxygen concentrators. its commercial assets like aircraft and ships The government has earmarked about
grated DAM in power exchanges, with sep- sumers. without market coupling,” said the note by Members of the Opposition, as well getting seized. $5 billion to companies as fiscal incentives
arate price formation for RE and conven- The power ministry has proposed that the power ministry. some from the ruling party, have demand- for items such as display and semiconduc-

Infy...
tional power,” said a note by the Ministry in the integrated DAM, buyers and sellers ed that the government provide relief to tor fabrication units, the Internet of things,

Maha lockdown...
of Power. would indicate the amount of RE and con- various sections of society in the event of a wearable products, and semiconductor
A senior executive with a power ventional power they are placing bids for. lockdown. Shiv Sena leader and deputy fabless start-ups.
exchange said the power ministry wrote to First, all the RE bids would be cleared at chairperson of state legislative council said The IT services giant is also slated to hold Sources say that Samsung is also setting
the central electricity regulator, grid oper- once. All quantities transacted under this The surge has put a strain on its health three days’ advance notice should be given a board meeting on April 13 and 14, to up a display plant for mobile devices with
ator Power System Operation Corporation segment would be considered under infrastructure. Beds and ventilators in and also called upon the state to provide approve of and take on record the consol- an investment of $705 million. This will be
‘renewable purchase Maharashtra are full and Remdesivir injec- ration and financial assistance to the vul- idated financial results of the company its first such plant in India. It has, nonethe-
obligation’. In case tion is in short supply, prompting the state nerable sections. for the quarter and year ended March 31, less, also been approached by the govern-
BS SUDOKU #3329 there is any unselected administration to call for tightening of 2021. This will be the third buyback by the ment to set up an even larger display fab-

Remdesivir...
quantity of RE, it would curbs. company. rication unit. A Samsung India
go to the conventional The number of new infections rose by Indian IT majors will be announcing spokesperson declined to comment.
Very easy: segment. 400,000 between April 4-10 and the pan- their fourth quarter (Q4) and 2020-21 According to experts, the technology is
 The power ministry demic resulted in deaths of 1,982 people. They have an installed capacity of about results starting April 12. held by a handful of companies in China,
Solution tomorrow believes this would help Faced with a shortage of hospital beds 3.88 million units per month. Though Tata Consultancy Services South Korea, Taiwan, and Japan. China
participants identify and ventilators, the state’s Covid-19 task Drugmakers said they were prioritising will be the first to announce its numbers dominates the LCD market with over a 70
they “have actually pur- force — comprising top doctors — has rec- delivery to the local market. on April 12, the Street will look at Infosys’ per cent share and Chinese firms have
chased renewable pow- ommended a lockdown. Reacting to the decision to ban exports, guidance for demand trends in 2021-22 invested $50-70 billion.
er from the exchange”. “There was a discussion regarding Kedar Upadhye, global chief financial offi- (FY22). According to an Edelweiss The premium OLED market is domi-
“Integrated RE and imposing a lockdown at the task force cer of Cipla, said: “Given what we are seeing Research report, Infosys may give a guid- nated by Samsung and LG but the Chinese
conventional DAM will meeting on Sunday. Most members of the in India, this may be the right step and we ance of 13-15 per cent growth for FY22. have made major investments here too.
SOLUTION TO # 3328
be a boon to RE gener- task force are of the view that the current are anyway prioritising most of the sup- “Infosys will be a key beneficiary of core The other leading players include Chinese
ators. It’s time mer- situation in the state necessitates a lock- plies for India.” transformation, accelerated Cloud adop- companies such as BOE Display and TCL,
chant RE capacity is down. There will be further meetings in Hyderabad-based drugmaker Hetero tion, and digital adoption. Further, per- Taiwanese firms such as Innolux
HOW TO PLAY created, so that they sell this regard in the next two days and the said: “Hetero has been one of the largest sistent market share loss of key players, Corporation, and Japanese companies
Fill in the grid so that every RE at market-deter- CM may call a Cabinet meeting to take manufacturers of Remdesivir in India and such as Capgemini and Cognizant, will Toshiba and Sharp, among others.
row, every column and mined prices. The dis- appropriate steps on Wednesday,” Health our primary focus has always been to fulfil directly benefit Infosys. We believe the According to estimates, the market for
every 3x3 box contains the coms are also not Minister Rajesh Tope told reporters after our country’s requirements. According to company will give revenue growth guid- displays in India is pegged at $7 billion, but
digits 1 to 9 required for long-term the task force meeting. the current government directive on export ance of 13-15 per cent for FY22. We also is expected to more than double to $15 bil-
rigid contracts, and Tuesday is Gudi Padwa, the restrictions, Hetero has minimum impact. expect Infosys to post a 50-basis-point lion by 2025, especially with the expected
would be eligible to buy Maharashtrian new year. Ambedkar We are also working to enhance deliveries, decline in margins quarter-on-quarter, boost in production and exports of mobile
in a flexible manner. Jayanti is celebrated on April 14. Tope’s considering the current surge in cases.” owing to wage hikes,” said Sandip Agarwal devices, laptops etc.
 NEW DELHI | MONDAY, 12 APRIL 2021 POLITICS & PUBLIC AFFAIRS 7
“CENTRAL FORCES OPENED FIRE ON PEOPLE WAITING “MAMATA DIDI AND HER TMC GOONS “THERE IS NO POSSIBILITY OF ANY POST-POLL TIE-UP
TO VOTE, KILLING 4 IN SITALKUCHI. I HAD BEEN HAVE BECOME JITTERY BECAUSE OF (BETWEEN THE TMC AND THE CONGRESS)... THE TMC
APPREHENDING THE FORCES WOULD ACT IN SUCH A GROUNDSWELL OF SUPPORT FOR AND THE BJP, WHICH WERE EARLIER ALLIANCE
MANNER FOR LONG” THE BJP” PARTNERS, WILL JOIN HANDS”
MAMATA BANERJEE, West Bengal chief minister NARENDRA MODI, Prime Minister ADHIR RANJAN CHOWDHURY, West Bengal Congress chief
> .

MVA: Maharashtra ‘There’s no easy reimbursement

bin Laden”, have come back to
haunt the Sena, after a letter by
the now-suspended policeman

system; IO left to fend for himself’

accusing transport minister Anil
Parab of graft. As Parab is one of

volatile alliance
Thackeray’s closest aides, this is
seen as an attack on his party boss
and chief minister. NEERAJ KUMAR, former commissioner of police, Delhi, says extortion and corruption driven back to the capital. So drivers
A Congress leader admitted the in the force are the results of structural deficiencies. Excerpts from his interview have to be engaged. Petrol has to be
MVA regime lacked coherent polit- with Aditi Phadnis: paid for. Food and other incidental
ical or communication strategies, expenses of the drivers have to be

ILLUSTRATION: AJAY MOHANTY

leading to its constituents speak- Some shocking revelations have paid for. Is there a mechanism in
The Aghadi is hurtling from one crisis to another, putting the ing in different voices.
“The Antilla case may not
become public about the working
of the Maharashtra police force,
place by which such expenditure
can be recouped from the
partnership between unlikely friends under immense strain destabilise the government direct- especially in Mumbai. The former government? The short answer to
ly, but it has affected our public Mumbai police commissioner is that question is: No. Such expenses
image,” admitted a Congress min- making charges that indict the are not catered for in any state.
ister. He said if the BJP, which is elected leadership in the state. Is In day-to-day police work, such
the single-largest in the this normal? expenses are commonplace and,
Maharashtra Assembly, with a What is happening is most abnormal regrettably, there is no easy system
bench strength of 105, managed to to the extent of being bizarre. One for reimbursement. An
notch up significant successes in has never heard of the political investigating officer is thus left to
the elections to five states, results leadership in any part of India using fend for himself. What does he do in
of which will be declared on May the police force as its collectors of the process? He makes up by
2, it could marshal disgruntled funds or agents of extortion from becoming a part of a system of
forces within the MVA. common citizens. What’s even more collusive collection of money from
In Maharashtra, the by-elec- revolting is they all turn to an officer people who themselves are trying
tions to the Pandharpur- from their police force to meet their to misuse the system. For instance,
Mangalwedha constituency, rapacious demands. if you are running a bar, if the
which have been necessitated by Can you imagine every vile min- scheduled time of closure is 11 pm,
the death of NCP MLA Bharat ister in Maharashtra is turning to one you may like to run it till midnight
Bhalke, will be keenly watched. particular police officer for imple- to make some extra money. You pay
The NCP has fielded Bhalke’s son menting his evil designs? Why is some to the excise department and
Bhagirath, while the BJP’s candi- everyone turning to Sachin Waze? police to look the other way while
date is Samadhan Autade. This will How has he become the pointsperson, you run your place for an extra
be the first such test of the popular a man who will definitely deliver? Waze is a rogue cop. And let us hour. It is a collusive system
mandate after the MVA came to That is one side of the story. And the assume that the politicians think because both sides stand to gain.
power. other side is: Why is the same officer their unholy purpose is best served Most expenditure made by the
What has rattled the Shiv Sena the blue-eyed boy of the using Waze. But why is the police for legitimate jobs that
According to a BJP leader, the party will try to bleed the MVA with the metaphorical thousand cuts and the Congress is NCP chief commissioner of police? Why is it commissioner of police close to this cannot be recouped on account of
Sharad Pawar’s hush-hush meet- that an assistant police inspector is person? The CP is, on the one hand, cumbersome governmental
DHAVAL KULKARNI the death of actor Sushant Singh HC’s order. ing with Union Home Minister made in charge of the Crime complaining that politicians are processes is taken care of by such
Rajput, and the resignation of the “This is not a question of a min- Amit Shah late last month. Intelligence Unit (CIU) of the Crime summoning Waze after bypassing well-oiled collusive modes of

C
obbled together after the Shiv Sena’s forest minister Sanjay ister or two resigning. The funda- Though Pawar is seen as the MVA’s Branch by easing out two others him. But the CP is himself money collection… I am not trying
Assembly elections in a set Rathod after the death by suicide mental flaw is that the MVA gov- architect, he is reputed for being senior to him? And why is it that undermining the hierarchy within to justify corruption in the police
of circumstances unique to of a 22-year-old TikTok star. ernment lacks a popular politically fickle. this man reports directly to the his force by interacting directly but am only giving an insight. Of
Maharashtra’s politics, the Maha But the February 25 bomb scare mandate,” charged a senior BJP Shiv Sena and Congress min- police commissioner? with Waze. That’s what course, as and when a specific act of
Vikas Aghadi (MVA) government outside Antilla, the South Mumbai leader, adding more ministers isters admit to disgruntlement Complaints against worries me, because the corruption is reported it is dealt
— comprising the Shiv Sena, residence of Reliance Chairman could find themselves in contro- against their NCP counterparts. political masters are one police are a well- with without demur.
Nationalist Congress Party (NCP), Mukesh Ambani, and its unfolding versy soon. He claimed that Though the Sena heads the gov- thing. But a police force structured, regimented
and the Congress — was seen as fallout, is the most serious crisis to instead of actively destabilising the ernment, party leaders admit that where a relatively junior and disciplined force. We In this case, politicians are
the textbook example of a dis- have confronted the MVA, so far. state government, the BJP, which the NCP calls the shots with pow- officer reports to the CP don’t allow such things to ordering officers to collect
parate alliance. The MVA experi- This led to “encounter specialist” is licking its wounds after being erful portfolios like home, finance, directly, after being made NEERAJ KUMAR happen. I’ve never seen money…
ment, where three unlikely part- Assistant Police Inspector (API) ditched by the Shiv Sena, would water resources, housing, and in charge of the CIU is even Former commissioner this happen in the Delhi Yes, this is unheard of. In this case,
ners joined forces to keep the Sachin Waze’s arrest by the wait for things to take their own rural development. more baffling. And of police, Delhi Police, for instance. reported from Mumbai, politicians
Bharatiya Janata Party (BJP) out National Investigating Agency course, while trying to bleed the Sena legislators are also upset somewhere, these two are telling the police: Go beyond the
of power, was claimed to have cre- (NIA) for his alleged role in plant- MVA with the metaphorical thou- at recent imports to the party and different strands meet. That is what Then we come to the sensitive issue existing system of hafta collection.
ated a template for similar experi- ing the explosives. sand cuts. independents being accommodat- worries me most. of extortion itself. Why does this Up the ante and the rates. We want
ments in other states. Param Bir Singh, who was A Shiv Sena minister claimed ed in the council of ministers from continue to happen? So many our cut, a cut that might necessitate
However, after a year-and-half shunted as Mumbai commis- the BJP was pushing for the impo- the Sena’s quota. So does that mean an IPS officer states report that this happens going the extra mile on your part.
in the saddle, the Uddhav sioner of police in the aftermath sition of the President’s rule or When asked about the longevi- who has risen to the rank of police routinely…
Thackeray-led regime is perform- of this case, accused Home Governor’s rule in Maharashtra by ty of the MVA government, a min- commissioner is basically dancing The reasons are many. The policing Where do you think all this is going?
ing a veritable balancing act. The Minister and NCP leader Anil citing constitutional breakdown ister who was also part of previous to the tune of a junior rank officer system requires a lot of money for My feeling is that the status quo
lack of coordinated strategies, the Deshmukh of using Waze to col- of the state machinery. “The res- Congress-NCP dispensations often like Mr Waze? legitimate things to be done. For ante will be soon restored. People
weakening authority of the lead- lect slush money. ignation of ministers, the law-and- points to how power, rather than No, what I’m saying is, it is instance, an investigating team will have to go back to the old
ership, growing disgruntlement Deshmukh quit on April 5 order situation, and the growing conviction, serves as the ultimate worrisome that he’s patronising the finds that 50 vehicles stolen from system where the money to be
among its constituents, the inabil- after the Bombay High Court Covid crisis may be used for cre- glue for even the most unlikely of same person who is being used by Delhi have found their way to a doled out by bar owners, etcetera
ity to set a narrative, and poor (HC) ordered a Central Bureau of ating a case for this,” he noted. partners. But with the MVA com- unscrupulous people in the remote state in the northeast. The will be affordable and reasonable.
damage control mechanisms Investigation (CBI) probe into The minister admitted the ing under intense strain, thus high- political hierarchy for extorting investigating team goes there, As and when people like Waze,
have seen it lurch from one crisis charges of corruption against MVA had erred in crisis manage- lighting its inherent contradic- money and collecting hafta and so locates these vehicles and seizes Param Bir Singh, and Anil
to another. him. The Supreme Court (SC) dis- ment. Strategic blunders like tions, will this glue keep the uneasy on. Why is such a person being them. How do you think the police Deshmukh are taken out of the
This includes the raging Covid missed the MVA government and Thackeray’s brazen defence of allies together? This is a question allowed to report to the CP directly? team would bring them back to equation, the old order will
pandemic, the controversy over Deshmukh’s plea challenging the Waze, claiming he was “not Osama that only time can answer. Let us assume for a moment that Delhi? The vehicles have to be come back.

STORY IN NUMBERS
The migrant returns to vote
KERALA: ALL FOR WOMEN MLAS, ONLY IN PRINCIPLE VIRENDRA SINGH RAWAT
Women MLAs have never exceeded 10% of Kerala legislative Assembly in its
64-year political history. Kerala elected the highest number of women MLAs in Uttar Pradesh, which endured inde-
1996-13. Since 2001, this percentage has hovered around 5%, but in 1967 and pendent India’s biggest migrant crisis
1977, only one woman was elected to the Kerala Vidhan Sabha. in the first half of 2020, when an esti-
In large part, there are only a few women MLAs because political parties give a mated four million workers returned to
small number of tickets to women to contest elections. Although parties in all the state following Covid-19 lockdown,
the three coalitions have increased the percentage of tickets given to women is witnessing the build-up of a similar
phenomenon with the second wave of
since 2001, the number has never exceeded 16% of total contesting candidates.
the pandemic sweeping across major
In the last Assembly election held in 2016, the Communist Party of India gave industrialised states, including
16% tickets to women, followed by CPI(M), which gave 14% tickets. Both the BJP Maharashtra, Punjab, and Delhi.
and the Congress Even as the migrant labourers from
gave 10% of their UP, Bihar, and other northern states
tickets to women. working in Maharashtra have started
It also matters returning, albeit in smaller numbers yet,
what kind of tickets fearing a stricter lockdown and loss of
are given to women livelihood in the coming weeks, the
reverse migration of workers, who had
candidates. "The
returned to work in the later months of
Left parties are 2020, is expected to spice up the state
better than others," panchayat polls later this month.
said A Jayashankar, Voting in the UP panchayat polls,
an advocate and regarded as the world’s largest local bod-
political observer, ies elections, will be held in four phases
"More than half the of the state’s 75 districts on April 15, 19,
seats they give are 26, and 29, and counting will take place
winnable ones, on May 2. The process of nomination
which explains the for the first phase has started.
WOMEN MLAS IN ASSEMBLY higher presence of
While the return of migrant workers
to their native villages can push up the
(out of total 140) women MLAs from voting percentage, it has added another
the Left parties in dimension to these polls, wherein all
the Assembly." In the major political parties have this time The UP panchayat polls will be held in four phases in 75 districts from April 15. Return of migrants has added another dimension
contrast, he said, fielded candidates under party symbols.
the Congress usually Omission and commission by the formance over the last four states, particularly The Bahujan Samaj Party (BSP)
gives unwinnable ruling parties, both in the work and years and the rural welfare Maharashtra. sounded critical.
seats to women. home states of UP migrant workers, with schemes the government has “There is a fear among “The Uttar Pradesh government has
In 2016, all the regard to the loss of employment, lock- launched despite the ongoing workers of getting stuck in failed to make timely and proper
down management, economic hard- farm stir in some places. their work states if there is arrangements to bring back its workers
eight woman
13 8 7 7 7 8 candidates that the
ship, Covid-19 deaths and health emer- “Our government took lockdown like last year. They from other states after lockdown last
gencies, apart from the subsequent relief timely and extensive meas- are returning to their villages year. The poor had to even walk hungry
Congress fielded and social security measures, will play ures to provide succour to the in whatever way they can, for hundreds of kilometres. I have been
1991 1996 2001 2006 2011 2016
Source: IndiaSpend, Election Commission of India
lost. Shanimol
Usman, who won
a vital role in determining the outcome.
The UP government, which has
estimated four million
migrant workers following STATE mainly train,” he said.
He noted Maharashtra,
touring rural areas, and have found
there is a palpable disenchantment with
the Aroor seat in a 2019 bye-election, was the saving grace for the party in that
Assembly. In 2011, even when the Congress-led UDF won a majority, P K
Jayalakshmi, who contested for a seat reserved for the Scheduled Tribes, was the
claimed to have launched a gargantuan
exercise to rehabilitate migrant workers
by providing them livelihood, food, and
lockdown last year. The peo-
ple have supported our poli-
cies and programmes all
SCAN Punjab, and Delhi had gov-
ernments helmed by parties
other the BJP, which is in
the ruling party,” BSP leader Harikrishna
Gautam said.
Social historian and political com-
lone woman to be elected. Lathika Subhash, despite being a senior leader in the medical support, will also need to rise through these years,” BJP UTTAR PRADESH power in UP. As such, it mentator Badri Narayan said the influx
Congress, was fielded only once in her three-decade political career — in 2011 to the occasion for the current second State Secretary Chandra would be rather premature of the workers would add to the political
wave of a possible influx, and also keep- Mohan noted, ruling out any possibility to forecast how migrant workers activity ahead of the polls and increase
against the incumbent CM, V S Achuthanandan. "State-level parties like the ing them in good humour in the run- of a repeat of the 2020 migrant influx would vote. the voting percentage.
Indian Union Muslim League (IUML), Kerala Congress and others perform the up to the elections. posing any challenge at the elections. However, he said the UP government “However, I do not foresee any sig-
worst," said Jayashankar. The IUML fielded a lone woman, Noorbina Rashid, a However, the ruling Bharatiya Janata Talking to Business Standard, Basti had taken all possible steps to deal with nificant bearing on the voting
long-term member of the party, after 25 years. Text: IndiaSpend Party (BJP) is confident of doing well district-based farm activist Arvind Singh the migrant crisis last year, and the rural pattern,” he said.
and gaining the confidence of the rural said there was a steady increase in the populace was by and large satisfied In UP, there are 826 development
masses on the basis of its “stellar” per- return of migrant workers from other with them. blocks and 58,194 gram sabhas.
 8 WORLD
>
NEW DELHI | MONDAY, 12 APRIL 2021

IN BRIEF
21 miners trapped, 8 rescued
Unnecessary panic: Astra vaccine LG, SK reach
$1.8-billion
in China coal mine mishap
unmasks the great East-West divide settlement
to end EV
‘Let’s not become part of that war between the different firms, because it’s already visible’ battery spat
BLOOMBERG
11 April S Korea to resume BLOOMBERG

jab for ages 30-60 11 April

W
hen European drug regu-
lators acknowledged a link Two South Korean electric-
between AstraZeneca Plc’s South Korea says it will resume vehicle battery makers
Covid-19 vaccine and a rare type of administrating AstraZeneca's reached a last-minute settle-
blood clots, it spread another dose of coronavirus vaccine to all eligible people ment in a bitter US trade dis-
skepticism across the continent. But in between the ages of 30 and 60. pute, sparing President Joe
the poorer east, the doubts are more Last week, South Korea suspended the Biden from choosing
Rescuers on Sunday were trying to reach 21 coal miners over the findings than the shot. use of AstraZeneca vaccines for those between undermining intel-
who were trapped by an underground flood in China’s Most western members of the 60 years old or younger while awaiting lectual property rights or
northwest, a state news agency reported. The mine in European Union announced some the outcome of the European Medicine dealing a politically toxic
Hutubi County in the Xinjiang region flooded at about 6:10 restrictions of the vaccine’s use for Agency's review. The Korea Disease blow to his climate agenda.
pm on Saturday, the Xinhua News Agency said. It said eight younger age groups or halted it com- Control and Prevention Agency said SK Innovation agreed to
people were rescued. China’s coal mines are among the pletely. The opposite happened across Sunday it will restart the use of pay 2 trillion won ($1.8 bil-
world’s deadliest, regularly suffering explosions and gas the east, with nine of 11 nations in the AstraZeneca vaccine beginning lion) to LG Energy Solution,
leaks despite repeated safety crackdowns. Eight of the 29 region deciding to keep administrating Monday, citing studies showing that a unit of LG Chem, according
workers who were at the scene have been rescued from the shot to all adults. the vaccine's benefits outweighs the to a statement from the two
the mine, according to preliminary reports AP/PTI “Let’s not create unnecessary panic,” A health worker gives the AstraZeneca shot, in Baghdad, on Sunday PHOTO: PTI risk of side effects. AP/PTI
Bulgarian Health Minister Kostadin
Angelov said as he listed the benefits of cines ordered by about a third of eastern office, said on April 8. and a 37 per cent refusal rate among its
UAE’s Mubadala likely to join Astra drug. “Let’s not become a part of
that war between the different com-
EU members. The vaccine is more easily
transported and stored than the mRNA-
A day earlier, the EU and UK regu-
lators said there was a possible link
7 million citizens to get vaccinated,
according to a March poll by Exacta
$12-bn Aramco pipeline deal panies, because it’s already visible.”
The former Eastern Bloc is home to
based vaccines from Moderna Inc. and
Pfizer-BioNTech, and the Anglo-
between the Astra shot and blood clots,
though both said the risks for most
Research. Bulgaria will keep applying
the Astra shot to all age groups but will
An Abu Dhabi sovereign wealth fund may join a group almost a quarter of the EU’s 440 million Swedish company has promised to people were far outweighed by the offer a different jab to women with a
investing in Saudi Aramco’s oil pipelines, in a deal set to be population and is struggling to tame the deliver as many as 3 billion shots in 2021 benefits as the coronavirus remains rife. high risk of thrombosis, in line with
backed by a loan of around $10.5 billion. Mubadala pandemic. For these countries—which on a not-for-profit basis. Britain, whose vaccination program is EMA recommendations, the health
Investment Co., a fund with $232 billion of assets, is in talks dominate the world’s top 10 list of coro- Hungary, which strayed from the way ahead of the rest of the continent, minister said.
with US investor EIG Global Energy Partners LLC, the lead navirus deaths per capita—curbing a EU-orchestrated procurement program is now recommending under 30s get a Leaders elsewhere have been vocal
member of the consortium, according to a Mubadala vaccine that’s key to their supplies is and directly purchased vaccines from different one. about their own inoculation with Astra,
spokesperson. A final agreement has yet to be reached, the unthinkable because they can’t afford Russia and China, also has sought to In Bulgaria, the poorest and least hoping to boost its credibility as citizens “This settlement
spokesperson said. Aramco has helped put together the to slow inoculation. Germany, by com- express its support for Astra. vaccinated nation in the EU, the more get restless over lengthy lockdowns. agreement is a win for
loan, which the group will use to fund the transaction, parison, has doubled the number of “The debate surrounding expensive vaccines were used to inocu- In Croatia, among the nations that American workers and
according to people familiar with the matter. BLOOMBERG daily Covid-19 vaccinations, while AstraZeneca’s vaccine should be viewed late priority groups such as doctors and has predominantly ordered Astra, PM the American auto
France hit a key milestone a week early. as a business struggle between drug- teachers. Astra is the most widely avail- Andrej Plenkovic said Thursday that he industry”
The world is counting on the Astra makers rather than valid opinions on able to the general public. and other leaders have been adminis- JOE BIDEN
Jordan’s royal family appears shot because of its price and ease-of-
use, and it represents most of the vac-
medical risks,” Gergely Gulyas, the min-
ister in charge of the prime minister's
The country’s inoculation effort was
already marred by poor organization
tered the shot, stressing the “vaccine is
safe and people should get vaccinated.”
US President

together following ‘royal rift’ companies. The payment is

divided equally in cash and

Effectiveness of our jabs low: China official

Jordan’s Prince Hamzah on Sunday made his first public royalties, they said.
appearance since he was placed under house arrest last The two companies “will
week, attending a ceremony with King Abdullah II in what work to help the develop-
appeared to be an attempted show of unity on a major ment of EV battery industry
Jordanian holiday. But it remained unclear whether the AP/PTI made using the previously for possible use. owned drug makers, Sinovac cent effective. in South Korea and the US
king and his popular half brother had put aside the Beijing, 11 April experimental messenger RNA, Experts say mixing vaccines, and Sinopharm, have been Health experts say Chinese through healthy competi-
differences that escalated last week into the most serious or mRNA, process. or sequential immunization, exported to 22 countries includ- vaccines are unlikely to be sold tion and friendly coopera-
public rift in the ruling family in decades. It was the first In a rare admission of the weak- “It's now under formal might boost effectiveness. ing Mexico, Turkey, Indonesia, to the United States, Western tion,” according to the joint
time that Hamzah was seen in public since he was placed ness of Chinese coronavirus consideration whether we Researchers in Hungary, Brazil Europe and Japan due to the statement. “In particular,
under a form of house arrest on April 3. AP/PTI vaccines, the country's top dis- should use different vaccines Britain are study- The effectiveness and Turkey, complexity of the approval we will work together to
ease control official says their from different technical lines ing a possible com- of a Sinovac vaccine according to the process. strengthen the battery net-
effectiveness is low and the gov- for the immunization pro- bination of Pfizer- at preventing foreign ministry. A Sinovac spokesman, Liu work and environmentally-
France’s Le Pen gains ground ernment is considering mixing
them to get a boost.
cess,” Gao said.
Officials at a news confer-
BioNTech and the symptomatic
traditional infections was
The effective-
ness of a Sinovac
Peicheng, acknowledged vary-
ing levels of effectiveness have
friendly policy that the
Biden administration is
for ’22 elections, poll shows Chinese vaccines “don't
have very high protection
ence Sunday didn't respond
directly to questions about
AstraZeneca vac- found to be as
cine. low as 50.4% by
vaccine at prevent-
ing symptomatic
been found but said that can be
due to the age of people in a
pursuing.”
The settlement will avert
French far-right leader Marine Le Pen is increasing her rates,” said the director of the Gao's comment or possible The coronavi- researchers in Brazil, infections was study, the strain of virus and a 10-year import ban of SK
chances of winning the first round of next year’s China Centers for Disease changes in official plans. But rus pandemic, near the 50 per cent found to be as low other factors. Beijing has yet to Innovation’s batteries into
presidential elections, according to an Ifop-Fiducial poll Control, Gao Fu, at a confer- another CDC official said devel- which began in threshold at which as 50.4 per cent by approve any foreign vaccines for the US and ends the two-
published by Le Journal du Dimanche. The National ence Saturday in the south- opers are working on mRNA- central China in health experts say a researchers in use in China. year dispute between the
Rally party leader would come first in six out of 10 scenarios western city of Chengdu. based vaccines. late 2019, marks vaccine is useful Brazil, near the 50 Gao gave no details of pos- two companies. The import
in the first round if the ballots were cast this Sunday, the Beijing has distributed hun- “The mRNA vaccines the first time the per cent threshold sible changes in strategy but ban threatened to compli-
poll showed. She would then be beaten in the second dreds of millions of doses developed in our country have Chinese drug industry has at which health experts say a cited mRNA as a possibility. cate the rollout of Ford
round for the top two candidates, with 46 per cent in a abroad while trying to promote also entered the clinical trial played a role in responding to a vaccine is useful. By compari- “Everyone should consider the Motor’s new F-150 electric
runoff against President Emmanuel Macron’s 54 per cent, doubt about the effectiveness of stage,” said the official, Wang global health emergency. son, the Pfizer-BioNTech vac- benefits mRNA vaccines can br- pickup truck and the Volk-
it said. BLOOMBERG the Pfizer-BioNTech vaccine Huaqing. He gave no timeline Vaccines made by two state- cine has been found to be 97 per ing for humanity,” Gao said. swagen AG’s ID.4 SUV.

Heathrow plan to raise $3.8 bn

challenged, says Telegraph
London’s Heathrow faces opposition from some board
‘Suspicious’ blackout strikes Iran’s Natanz N-site
members to its plan to raise £2.8 billion ($3.8 billion) from
airlines and customers by increasing airport prices, the
Telegraph reported. State-backed Qatar Airways, whose
It’s nuclear terrorism: Iran AP/PTI
Dubai, 11 April
military and intelligence
agencies.
If Israel caused the black-
prised of above-ground work-
shops and underground
enrichment halls, civilian
that the incident was “very sus-
picious,” raising concerns
about possible “sabotage and
owner is also Heathrow’s second-biggest shareholder, said Iran’s underground Natanz out, it further heightens the nuclear program spokesman infiltration.” He said law-
the plan is “unreasonable, not in the consumer interest and nuclear facility lost power on tensions between the two Behrouz Kamalvandi told makers were pursuing details
should be rejected,” according to the report. The airline’s Sunday just hours after starting nations already engaged in a Iranian state television. of the incident as well.
top executive, Akbar Al Baker, is a representative for the up new advanced centrifuges shadow conflict across the “We still do not know the The Vienna-based
state of Qatar on Heathrow’s board of directors. BLOOMBERG capable of enriching uranium wider Middle East. reason for this electricity out- International Atomic Energy
faster, the latest incident to It also complicates efforts age and have to look into it Agency, which monitors Iran's
strike the site amid negotia- by the US, Israel's main secu- further,” Kamalvandi said. program, said it was “aware of
‘Ma Rainey’s Black Bottom’ tions over the tattered atomic
accord with world powers.
rity partner, to re-enter the
atomic accord aimed at limit-
“Fortunately, there was no
casualty or damage and there
the media reports,” but
declined to comment.
wins two prizes at BAFTA As Iranian officials investi-
gated the outage, many Israeli
ing Tehran’s programme so it
couldn’t pursue a nuclear
is no particular contamination
or problem." Asked by the
Natanz was largely built
underground to withstand
The opening night of the 74th British Academy of Film and media outlets offered the sim- weapon if it chose. As news of state TV correspondent if it enemy airstrikes. It became a
Television Arts (BAFTA) Awards saw Viola Davis-starrer “Ma ilar assessment that a cyberat- the blackout emerged, US was a “technical defect or sab- flashpoint for Western fears
Rainey’s Black Bottom” taking home two awards in the tack darkened Natanz and Defense Secretary Lloyd otage,” Kamalvandi declined to about Iran's nuclear program
technical categories. The annual award ceremony, delayed damaged a facility that is home Austin landed in Israel on comment. in 2002, when satellite photos
from its usual February date due to the coronavirus Iran’s Natanz nuclear unit has been built underground to to sensitive centrifuges. While Sunday for talks with Malek Shariati Niasar, a showed Iran building its
pandemic, has been split into a two-day event. The BAFTA’s withstand airstrikes. It lost power on Sunday, hours after the reports offered no sourcing Netanyahu and Israeli Defense Tehran-based lawmaker who underground centrifuges facil-
opening night, which was hosted by British radio starting up new advanced centrifuges capable of enriching for the evaluation, Israeli Minister Benny Gantz. serves as spokesman for the ity at the site, some 200 kilo-
personality Clara Amfo, was held virtually on Saturday and uranium faster. Iran described the blackout an act of media maintains a close rela- Power at Natanz had been Iranian parliament's energy meters (125 miles) south of the
winners for eight categories were announced. PTI nuclear terrorism, raising regional tensions PHOTO: AP/PTI tionship with the country's cut across the facility com- committee, wrote on Twitter capital, Tehran.

Fine, thank you, says Alibaba after China’s $2.8-billion penalty

BLOOMBERG was less severe than many feared and agencies are said to be scrutinizing latory offensive, including scuttling
11 April helps lift a cloud of uncertainty hang- other parts of Ma’s empire, including Ant’s $35 billion initial public offering.
ing over founder Jack Ma’s internet Ant Group’s consumer-lending busi- It remains unclear whether the
After China imposed a record antitrust empire. The 18.2 billion yuan penalty nesses and Alibaba’s extensive media watchdog or other agencies might
fine on Alibaba Group Holding, the e- was based on just 4 per cent of the holdings. And the shock of the crack- demand further action. Regulators are
commerce giant did an unusual thing: internet giant’s 2019 domestic revenue, down will continue to resonate with said, for instance, to be concerned
It thanked regulators. regulators said. While that’s triple the peers from Tencent Holdings and about Alibaba’s ability to sway public
“Alibaba would not have achieved previous high of almost $1 billion that Baidu to Meituan, forcing them to discourse and want the company to
our growth without sound government US chipmaker Qualcomm handed over tread far more carefully on business sell some of its media assets, including
regulation and service, and the critical in 2015, it’s far less than the maximum expansions and acquisitions for some the South China Morning Post, Hong
oversight, tolerance and support from 10 per cent allowed under Chinese law. time to come. Kong’s leading English-language news-
all of our constituencies have been cru- The fine came with a plethora of What Bloomberg Intelligence Says paper.
cial to our development,” the company “rectifications” that Alibaba will have China’s record fine on Alibaba may China’s top financial regulators now
said in an open letter. “For this, we are to put in place — such as curtailing the lift the regulatory overhang that has see Tencent as the next target for
full of gratitude and respect.” practice of forcing merchants to weighed on the company since the increased supervision, Bloomberg News
It’s a sign of how odd China’s crack- choose between Alibaba or a compet- start of an anti-monopoly probe in late has reported. And the central bank is
down on the power of big tech has ing platform — many of which the December. The 18.2 billion yuan ($2.8 said to be leading discussions around
been compared with the rest of the company had already pledged to billion) fine, to penalize the anti-com- establishing a joint venture with local
world. Mark Zuckerberg and Tim Cook establish. petitive practice of merchant exclusiv- technology giants to oversee the lucra-
would not express such public grat- Alibaba Chief Executive Officer ity, is equivalent to 4 per cent of tive data they collect from hundreds of
itude if the US government were to hit Daniel Zhang on Saturday declared his Alibaba’s 2019 domestic sales. Still, the millions of consumers, which would be
Facebook or Apple with record anti- company now ready to move on from company may have to be conservative a significant escalation in regulators’
trust fines. its ordeal, while China’s Communist with acquisitions and its broader busi- attempts to tighten their grip over the
But almost everything about Party mouthpiece People’s Daily issued The move sends a clear message to the country’s largest corporations and their ness practices. country’s internet sector.
China’s regulatory push is out of the assurances that Beijing wasn’t trying to leaders that anti-competitive behaviour will have consequences The investigation into Alibaba was “The high fine puts the regulator in
ordinary. Beijing regulators wrapped stifle the sector. one of the opening salvos in a cam- the media spotlight and sends a strong
up their landmark probe in just four The Hangzhou-based firm “has addressed lingering questions around to further regulatory action — a far cry paign seemingly designed to curb the signal to the tech sector that such
months, compared with the years that escaped possible outcomes such as a the extent to which Beijing remains from just six years ago, when Alibaba power of China’s internet leaders, types of exclusionary conduct will no
such investigations take in the US or forced breakup or divestment of assets. intent on reining in its internet and openly contested one agency’s censure which kicked off after Ma infamously longer be tolerated,” said Angela
Europe. They sent a clear message to The penalty will not shake up its busi- fintech giants, a broad campaign that’s over counterfeit goods on Taobao and rebuked “pawn shop” Chinese lenders, Zhang, author of “Chinese Antitrust
the country’s largest corporations and ness model, either,” said Jet Deng, an wiped more than $250 billion off eventually forced the State Admin- regulators who don’t get the internet, Exceptionalism” and director of the
their leaders that anti-competitive antitrust lawyer at the Beijing office of Alibaba’s valuation since October. The istration for Industry and Commerce and the “old men” of the global bank- Centre for Chinese Law at the
behavior will have consequences. law firm Dentons. e-commerce giant’s speedy capitula- to backtrack on its allegations. ing community. Those comments set University of Hong Kong. “It’s a stone
For Alibaba, the $2.8 billion fine Still, neither Zhang nor state media tion also underscores its vulnerability Beyond antitrust, government in motion an unprecedented regu- that kills two birds.”
 >
OPINION 9
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM

Volume XXVII Number 150 ILLUSTRATION: AJAY MOHANTY

far as I can tell, the driving force was astrology. From
NEW DELHI | MONDAY, 12 APRIL 2021 very ancient times, in India, if you acquired a repu-
tation for providing the most accurate prediction for

Failure on vaccines the movements of the moon, the stars and outcomes
such as eclipses, the astrological predictions you
made were also listened to with awe. We, Indians, of
Refusal to support private sector has led to a roll-out flop every economic group, then and now, were always

T
prepared to pay good money to get astrological advice
he pandemic’s second wave is gathering strength throughout India, even if the links between planetary movements and
with the number of new cases a day now crossing 150,000. Several astrological prediction (who to marry, when to marry,
states, including the hardest-hit Maharashtra, are complaining about when to lay a foundation stone for your home among
a shortage of vaccines. Meanwhile, India has also effectively stopped other things) remained suspiciously thin. So, in India,
exports of vaccines, leading to crises in other countries. India was supposed to for nearly a thousand years, adeptness in mathemat-
be the vaccine factory of the world. This is what the government promised, and ics ensured you a prosperous life!
what it has boasted about at intervals over the past month. The Union health Still another new dawn for mathematics in India
ministry, however, is wasting time instead on blaming various state governments. was the rise of economic planning in the 1950-64 peri-
od, commonly called the “Nehru era”. Mathematical
The vaccine roll-out has been hampered by the Indian state’s customary arrogance
models were created, notably by Prasanta Chandra
and its disdain for the private sector. Mahalanobis, and the branch of mathematics called
There is one central question that needs to be asked of the government by statistics and the “Mahalanobis model” dominated
every Indian who is awaiting a vaccine: Where are your purchase orders? In every Indian intellectual thinking. All this intellectual fervour

The rise & fall & rise

other country that can afford it, the government has reached out to vaccine man- about statistics led to the conclusion that the future of
ufacturers, and provided guaranteed purchase orders. The United States govern- rapid economic growth for India lay in very heavy
ment locked in 100 million doses of the Pfizer vaccine even before it was demon- investment by the Indian state in manufacturing
strated to be safe and effective, with the option for 500 million more. It repeated machinery to produce steel, chemicals, fertiliser, elec-

again of statistics
tricity, transport equipment, etc. The science of statis-
the pattern with several others. So did Europe and others. Many countries have
tics then became the handmaiden of economic plan-
locked in orders even with the Indian manufacturer, the Serum Institute of India. ning and folks with an advanced statistics degree could
What did the Indian government do? It merely negotiated a low price, for the first demand virtually any position or compensation.
100 million shots. Then there was an inexplicable pause, as the government had All these came to an end in the 1980s, when the
not signed a purchase order. That order eventually came to SII, but for only 11 world, and India, lost faith in the elaborate statistical
million doses. What is the government’s problem with paying for all it intends The surprising drivers of mathematical innovation models of the “planned economy” and swung to so-
and needs to consume? How is SII supposed to scale up manufacturing to the called “laissez-faire” or free-market ideas (“free” being

T
degree required if it does not have the cash in hand to make that decision? he other day, in an attempt to lift the mood of Gauss’s life and work is a good starting point to seen as the opposite of “planned”) as preached and
This leads to the other failure of the government, which is to ensure that three-dozen twenty-somethings from an research that question and when I started digging into practised by the likes of Margaret Thatcher in Britain
IIM that I was leading through an online math- things, a subtle light began to shine on this mystery. and Ronald Reagan in the United States.
adequate capacity is created on the correct timeline. It is unclear if so much as
ematical model-building class, I cheerily announced: In the 1820s, Gauss worked as a scientific adviser Statistics as a science took a back seat in the corri-
a single rupee went from the Indian government to Indian manufacturers to “Kids, let’s celebrate the 200th anniversary of the to the Hannover government in surveying large geo- dors of political power but quickly found a place in
help them scale up capacity over 2020. Money came in from sources such as Gaussian distribution!” graphical areas, the purpose being to draw maps stak- stock markets, particularly Wall Street. Using high-
Bill Gates’ foundations. The politicians and bureaucrats perhaps think that pri- I assumed they would all jump and join my ing out the land areas that belonged to Hannover. The powered computers to construct abstruse models,
vate companies like SII are an arm of the government. In a once-in-a-century cheering. Instead, I was greeted with puzzled looks idea of a nation-state arose with the rise of the modern quantitative traders (called “Quants”) grew so powerful
pandemic, the government just can’t allow manufacturing to be a trickle of and silence. system of states after the Treaty of Westphalia in 1648. that they quickly controlled about a third of all trading
what it could be, just because it does not want to partner in scaling up capacity Finally, one picked up the courage From then on, in Europe, being a on US stock markets. The traditional art of stock pick-
with private companies. to ask me: “Sir, you mean the Gaussian nation state depended upon being ing, quizzing a company’s management about its oper-
distribution that we use every day as centrally controlled entities with ations, felt like a relic of the past. The statistician/math-
The final failure of the government has been pricing. SII’s Adar Poonawalla
part of our cutting-edge machine clearly defined geographic bound- ematician tribe was back in control!
said repeatedly that the company agreed to a deeply discounted price for the learning and artificial intelligence aries. It is in this mapping work — And without me having to point out, in the internet
Indian government for the first 100 million doses, and after that it expected to work is that old?” particularly taking into account the age, mathematics, and statistics have become even
open up sales so as to allow for more cash flow — again, to make the investment “Yes”, I said. “Johann Carl curvature of the earth — that Gauss more dominating, based on the clear genius of people
needed to increase production. It is far from clear that this agreement is being Friedrich Gauss was born on April had to come up with all those tech- like Geoffrey E Hinton (intellectual leader of the arti-
honoured by the government. If hospital beds are running short in Indian 30, 1777, in the city of Brunswick, niques that we today call “Gaussian”. ficial intelligence movement) deciding what news you
cities, it is because the weeks when the vulnerable should have been vaccinated Germany, came up with the Similarly, what led ancient get to read/watch, what products merit your attention
were wasted. India will have to endure a summer with insufficient vaccines Gaussian distribution in the prime Indians to discover the decimal to buy online, what marriage partner suits you best,
purely because the government still does not understand how private enterprise of his life in the 1820s, and died AJIT BALAKRISHNAN system, linear prediction models, what politician you should vote for, and, most of all,
in 1855.” and algebra? how to drive advertisement revenue upwards!
works. The result has been all too obvious: While US has just announced that
“Sir, one last question, why on The not so surprising answer to Let’s step back for a moment and ask whether
all adults would be eligible to receive the vaccine in the next two weeks, India is earth would anyone, two hundred years or more this is that in India, mathematics was the handmaid- through the ages — from the time of Shankaracharya
still busy going in the opposite direction by refusing to relax the age restriction ago, think of inventing mathematical methods en, not of cartography, but of astrology. to Gauss to Mahalanobis to Geoffrey Hinton — statis-
of 45 years and above. which we today, in 2021, are struggling to master Mathematically inclined Indians could make a hand- tics and mathematics have been essentially a tool for
and use?” some living by applying their skills to predicting the intellectual class jockeying for power.
I had to humbly tell them that I would answer movements of the moon, the sun, the planets, and As the 21st century opens out, should we find a

Making of Bidenomics that question in our next session, and thereby the stars. The Vedanga Jyotisa, for example, which
bought myself time to fully understand what makes contains many of these and similar mathematical
or drives anyone to create a new mathematical techniques, is generally believed to have been put
systematic way for mathematics and statistics — or,
for that matter, all science/technology — to focus on
the social good and not merely chase the eminence
The idea of a global minimum tax rate has merits paradigm? Is it because they are such geniuses that together between the 12th and 14th centuries BC. and financial well-being of a few?

T
he Joe Biden administration’s response to the Covid challenge has these thoughts occur to them out of the blue? Or do The efforts to be able to get the prediction of planetary
they think things up in the process of searching for movements right continued from then on. What The writer (ajitb@rediffmail.com) is an
been extraordinary. The pandemic looks comparatively under control,
a solution to some more real-world problem? drove such passion for mathematical innovation? As internet entrepreneur
thanks to the pace of vaccination, and the economic recovery is
getting stronger than anticipated earlier. After a massive $1.9-trillion
relief package, the Biden administration has unveiled a $2 trillion infrastructure

Sebi’s delay makes RIL order absurd

plan. While the fiscal push will boost growth in the near term, its longer-term
implications are not yet settled. In a way, the administration is challenging
some of the popular economic policy wisdom. Several economists have argued
that fiscal intervention at this scale could result in overheating. The Biden

T
he Securities and Exchange Board of India crore under the amended Section 15H but this amend- Delay? What delay?
administration now plans to increase the corporation tax rate from 21 per cent
(Sebi) last week slapped a penalty of ~25 crore ment happened only in 2002. The alleged violation The RIL group in its response quotes the Securities
to 28 per cent. The US is also advocating a global minimum corporate tax rate,
jointly on 34 entities, including brothers had occurred in January 2000, when the penalty was Appellate Tribunal in Ashok Chaudhary v Sebi (order
which could have far-reaching implications. Mukesh and Anil Ambani and various members of just ~5 lakh. Moreover, in August-September 2011, the of November 5. 2008): “Long delays in issuing show
US Treasury Secretary Janet Yellen argued last week in favour of stopping “a the extended Ambani clan and other entities known RIL entities had filed a consent application (under cause notices to the delinquents will not subserve the
thirty-year race to the bottom on corporate tax rates”. The International Monetary as persons acting in concert (PAC). In January 2000, which an accused could pay up some money and walk purpose for which the Board has been set up. It
Fund also supports the idea. The popular policy view is that lower corporate tax the promoters of Reliance Industries Ltd (RIL), and away, without denying or admitting guilt). Sebi had would rather act against the interest of the securities
rates encourage investment, which results in higher economic growth and creates other entities acting in concert, raised their stake in put the case back in cold storage without deciding the market …” But here is the most amazing aspect of the
more jobs. But this thesis is now being questioned in the world's largest economy. RIL by 6.83 per cent through converting warrants issue. Mr Sinha’s second term ended in February 2017 episode. Sebi does not even think that there was any
It is being argued that corporate tax cuts by the Donald Trump administration issued in 1994. Under Sebi’s Substantial Acquisition and Ajay Tyagi became chairman. In May 2020, almost delay! It argues in the 85-page order that “only after
of Shares and Takeovers (SAST) Rules of 1997, any nine years later, Sebi woke up to reject the consent the examination of the facts is complete and submitted
did not result in higher investments. Thus, if tax cuts did not lead to higher invest-
acquisition of over 5 per cent ought application and to issue and order to the Board for initiation of action and approval for
ment, a higher rate of taxation will not hurt jobs. But if that was the case, countries
to have triggered an open offer to and impose penalties. filing a complaint under Section 26 does the limitation
would not have indulged in this “race to the bottom”. other shareholders. But RIL did not The funny thing about Sebi’s order period, if any, begin to run.” In this case, “various
But a possibility of losing out on investment is not the only factor driving bother to do that. The violation came is the assertion that the failure of enforcement action… was approved by the Competent
the idea of a global minimum tax rate. The bigger problem over the recent to light in April 2000. However, it Reliance promoters to make an “open Authority on September 15, 2010” and “SCNs (show-
years has been the shifting of profits by large corporations, particularly Big appears that three successive Sebi offer” had “deprived the shareholders cause notices) issued in February 2011”.
Tech, to lower-tax jurisdictions or tax havens. Large tech firms are avoiding chairmen — D R Mehta, G N Bajpai, of their statutory rights/opportunity This was followed by hearings in 2011, after which
taxes in their home countries, which is also boosting their net profits. According and M Damodaran — had no to exit from the target company and the RIL group filed a consent application. The Sebi
to the Organization for Economic Co-operation and Development (OECD), interest in actively pursuing it. therefore they breached the provi- order claims “… the matter had been kept in
In April 2010, when C B Bhave was sions of the Takeover Regulations. abeyance in accordance with the securities law and
governments are losing tax revenue worth $100-240 billion annually because
chairman, Sebi pulled out this 10- Such charges against the noticees also considering the undertakings given and
of profit shifting. This essentially means that governments are taxing citizens
more to meet their obligations. This is what the Biden administration intends
year-old matter from the deep freeze IRRATIONAL CHOICE make the instant matter grave”. Have requests made by the Noticees”. The settlement
and issued notices to 38 entities for shareholders lost out by not being applications were rejected on May 15, 2020, pursuant
to end. Consider this: The four largest companies in Ireland, according to a violating takeover regulations and DEBASHIS BASU able to exit? RIL’s share price at the to which the present proceedings have resumed,
ranking by Irish Times, are Apple Ireland, Google, Facebook, and Microsoft. appointed an adjudication officer in end of January 2000 was ~62 (price therefore, “there is no delay, if any, on the part of
Ireland has a corporation tax of 12.5 per cent. While the idea to stop tax shopping December 2010. On February 17, 2011, Mr Bhave’s term adjusted for restructuring). It is over ~2,000 today. the SEBI in initiation of the adjudication proceed-
has merits, efforts in this direction have not yielded much in recent years. expired and within six days of U K Sinha’s appointment, While not putting too fine a point on it, RIL share- ings”. The regulator’s claim that an order — issued
In fact, with no consensus emerging on taxing digital firms, India, along Sebi issued a notice to these entities, including the holders have enjoyed more than a 30 times increase 20 years after a simple and straightforward violation,
with several other countries, imposed a digital tax on tech giants. But this didn’t entire Ambani clan. As an aside, Mr Sinha battled alle- in their wealth, as a result of the company’s failure to one that did not require long-drawn investigation,
gations that he was going soft on investigations all make an open offer and Sebi’s two-decade delay in and therefore does not amount to delay — is
go down well in the US and it is planning to impose retaliatory tariffs on Indian
through the first term of his long, seven-year tenure. enforcing it. And, I am not even counting additional extremely shocking. The very purpose of setting up
imports. Thus, it makes sense for India to actively participate in building a Reliance immediately rebutted the charge on the shares of the Anil Ambani group that RIL shareholders independent regulators is to ensure speedy investi-
global consensus on all aspects of corporate taxation. A consensus on global following grounds. One, it was not given access to the were allotted when the brothers split. According to gation and enforcement action by a trained cadre
taxation rules will provide more clarity and increase transparency. However, documents that Sebi had relied on. Two, there was an Sebi, despite the long delay, RIL’s liability to make the with domain knowledge, because of the fast-chang-
arriving at a global agreement may not be easy. The average corporation tax unreasonable and unexplained delay and so, according open offer continues till today! While the RIL group ing nature of the capital market. How would Sebi’s
rate in OECD countries is 21.5 per cent, and the US is proposing a minimum tax to various case laws, it was too late for Sebi to bring must be made to pay for violations, if established, action have served any purpose if RIL had gone the
rate of 21 per cent. It is likely that countries with lower rates may not agree any charges. Three, acquiring shares by way of prefer- shouldn’t Sebi be aware of the absurd implications of way of the Anil Ambani group?
easily. But efforts must be made to convince them because if the tax rate is set ential allotment was exempted from public offer its long-delayed order? Interestingly, Sebi has not both-
requirements so RIL had done nothing wrong. Four, ered to compute the unfair gains made by RIL pro- The writer is the editor of www.moneylife.in
too low, it would defeat the purpose to a large extent.
Sebi has slapped a penalty on the RIL group of ~25 moter entities by not making the open offer. Twitter: @Moneylifers

A superpower’s long decline Mr Heffer has little interest in debates

among historians on the period, but he
does not rely just on secondary literature
and makes excellent use of wide-ranging
metaphorical, to live off dividends rather
than work that little bit harder and
improve more.” The end result: “Britain
was diminished” and “British power was
foundation of the British welfare state and
National Health Service.
Twentieth-century Britain overcame
rival empires, fought and won two
For many Americans today, perhaps danger of making everything in Britain archival research. That approach gives in decline.” cataclysmic wars and twice
fearing late-stage decadence and their about the war as the country hurtles the book a fresh perspective, although not Mr Heffer warns us against “the reconstructed the world order in its own
own Weary Titan, this story may strike toward some kind of inevitable abyss. necessarily a new one. pornography of nostalgia,” but still, there image. The British retreated from
close to home. For in Simon Heffer’s There are many pleasures to be had in The Age of Decadence is a masterpiece are other ways to see the Edwardians. The empire once its corrupting decadence
telling, the history of Britain from 1880 to this fine book, not the least of which is the of pacing. After an amiable perambulation Edwardians certainly meet Arnold became manifest. Historians of other
1914 is one in which “a nation so recently vivacity of Mr Heffer’s prose. A columnist with the last of the Victorians, we build to a Bennett’s criterion of being “identified empires might ask whether the
BOOK REVIEW not just great, but the greatest power the for The Sunday
THE AGE OF
frantic cliff-top with the great cause of cheering us all up.” Edwardians were any more degenerate
world had ever known, sustained in its Telegraph as well as a scramble as the Everything was brighter, faster, more than the French of the Third Republic, or
RICHARD ALDOUS greatness by a rule of law and parliamen- historian, he writes DECADENCE: A Edwardians lose fashionable. With the growth of cinemas, imperial Germans, Russians, Ottomans,
tary democracy, had begun its decay.” elegantly but History of Britain, their grip on events gramophones, telephones and the first Iranians and Chinese. Certainly Britain

W
hat fools we were,” King The Age of Decadence is a successor punchily, combining 1880 to 1914 and themselves. 100-miles-per-hour trains for trips to the was eclipsed by the United States but
George V told his prime volume to the same author’s well- seriousness with Author: Simon By the final pages, seaside, Edwardians for the most part had arguably there was not much the
minister, Ramsay MacDonald, regarded High Minds: The Victorians and welcome flashes of Heffer Mr Heffer has more fun than those stern Victorians. Edwardians could have done about the
in 1930, looking back to the era before the Birth of Modern Britain (2013), which waspishness that Publisher: Pegasus skilfully conjured a Thanks to advances in medicine and rise of a vast, resource-rich continental
World War I. In the context of the charted Britain’s rise to “greatness” in the stop things from country in chaos nutrition, people in Britain lived longer power that unlike its other rivals was
wartime catastrophe his generation had earlier part of the 19th century. Mr Heffer getting stuffy.
Books and heading over (unless they found themselves in the reasonably well governed. Today Britain
delivered, the king may have had a point. picks up here with Gladstone taking over Pointing to the Price: $39.95 the edge. wartime trenches). And everyday life also remains one of the half-dozen richest
Arthur Balfour, prime minister from the premiership from his great rival, socially entitled Pages: 912 Mr Heffer has improved. The daily existence of the countries in the world with a cultural
1902 to 1905, lamented “some process of Disraeli, in 1880, then guides us through Virginia Woolf’s no hesitation in working classes on whose backs much of and political impact that far exceeds its
social degeneration” that “may the high-Victorian era into the 20th sneering at a fellow pointing the finger the wealth of the previous century had size. Much of its good fortune is rooted in
conveniently be distinguished by the century with the accession of King novelist, the shopkeeper’s son Arnold of blame at the complacent, “swaggering” been built was enhanced immeasurably the legacy of those Edwardians.
name of ‘decadence.’” Joseph Edward VII in 1901. He ends in 1914 with Bennett, he notes that her put-downs “had late-Victorian and Edwardian elites who by a battery of social, industrial and So perhaps in the end King George V
Chamberlain, the most charismatic Britain facing an unhappy choice him written off for much of the 20th ran the show in these four decades. From educational legislation. Liberal reform only had it half right. For while they
politician of the late-Victorian age, put it between a European war with Germany century by generations of university 1880 “until the apocalypse came in 1914,” culminated in the comprehensive 1911 were often foolish, the Edwardians were
more pithily. “The Weary Titan,” he said and a civil war in Ireland. He wisely does lecturers and critics, who confused he writes reprovingly, “there was among National Insurance Act — one of the most no fools.
in 1902, “staggers under the too vast orb not include the origins of the world war snobbery with literary criticism.” That, as the upper and upper-middle classes a important pieces of legislation of the 20th
of its fate.” substantively, avoiding the teleological they say, is a twofer. resting on laurels; a decision, literal and century and one that remains a ©2021 The New York Times News Service
 The Smart
QUICK TAKE: COVID CURBS MAY IMPACT PHOENIX MILLS “A lot of investors are worried about the

Investor
stock-market highs, but that
(Price ~) The stock of The Phoenix Mills was down over doesn't mean it can't get
750.85 4 per cent in trade on Friday over worries that higher, and the economic
strict restrictions following the second wave of conditions are certainly set up
NEW DELHI | 828.70
Covid-19 could dent its revenues across retail,
for a positive equity environment”
MONDAY, 12 APRIL 2021 XI QIAO
office, residential, and hotel assets, as well as Managing director,
Mar 1,’21 Apr 9,’21 delay its ongoing projects UBS Global Wealth Management
WWW.SMARTINVESTOR.IN FOR INFORMED DECISION MAKING <

Mismatch between valuations, financials for 9MFY21 aren’t very

comforting, with the disappoint-
ment particularly visible during
Q3. For instance, HDFC AMC, now
STREET
SIGNS

fundamentals glaring for AMCs

the second-largest player, has
ceded market share to SBI AMC.
During Q3, HDFC AMC and Large AMC IPOs can be delayed
Nippon AMC witnessed an 8 per There is a strong buzz in the market that a
cent and 11 per cent year-on-year handful of asset management companies
reduction in revenue from opera- (AMCs) are getting ready to launch their IPO.
tions, respectively. However, if industry chatter is anything to go
March historically a good month for savings products across categories, for reasons such as tax incentives While HDFC AMC’s net profit
growth, at 5 per cent, was a multi-
by, a large fund house has hit the pause
button on its listing plans. This fund house has
ILLUSTRATION: AJAY MOHANTY quarter low, Nippon Life’s net profit seen its assets grow at a very healthy clip. The
HAMSINI KARTHIK
Mumbai, 11 April
MAPPING THE FLOWS (adjusted for other income) grew 10
per cent YoY. Nippon Life is still in
thinking within the fund house is that
launching an IPO maybe a year later will fetch
(~crore*) consolidation phase following its much better valuations. Also, one joint

S
ubstantial outflows, DII MF split from Reliance Capital. This venture partner isn’t on board on selling any
particularly in the equity Apr 1 -296.84 -111.06 explains its relatively muted show. stake at this juncture. CHIRAG MADIA
portfolio, caused huge vol- The performance of HDFC
atility in average assets under Apr 5 75.48 -288.67 AMC, however, was disappointing. Yarn stocks on HNI radar
management (AAUM) of asset Apr 6 416.59 -63.23 Given the constant slide in its mar- Several high net-worth individuals (HNIs) are
management companies (AMCs), ket share — with overall AAUM said to be lapping up shares of cotton yarn
Apr 7 381.08
during the nine months from market share falling to 14.2 per manufacturers amid a spike in yarn prices. The
June 2020 to February 2021. Apr 8 552.78 cent in Q3 (down 40 bps sequen- onslaught of Covid-19 has led to higher
The Street, however, was Apr 9 -271.26 tially) — defending valuations demand for fabrics and home textiles
unfazed. This is because stocks of may soon be a task. worldwide. This, in turn, has led to strong
*net of equity inflows and outflows
AMCs have always enjoyed much Source: BSE and Sebi For UTI AMC, which ranks fifth global demand for yarns. On the domestic
of the Street’s optimism, given in the pecking order, the Q3 show- front, a shortage of yarn, a key raw material in
that they are viewed as the best second Covid wave, outlook for ing was a tad better than peers. manufacturing garments, especially knitwear
proxies to capture the country’s equities has turned shaky in the Substantial revaluation of assets and hosiery, has resulted in prices of yarn
financialisation theme, which near term. Consequently, suste- bumped up its earnings (up 40 per hitting an 8-year high at the beginning of 2021.
refers to people preferring invest- nance of the March equity inflows cent YoY), even as the core income Domestic yarn prices have shot up by nearly 50
ments in financial products vis-à- is critical for sentiment regarding stream (revenue from sale of serv- per cent in the past four-five months. Shares of
vis traditional instruments (gold
or real estate).
According to the Association
of Mutual Fund Industry (Amfi),
EXPENSIVE VALUATIONS (In%) AMC stocks to remain positive.
In addition, March has histori-
ices) rose only 7 per cent YoY. In
this context, valuation isn’t cheap.
yarn companies, such as Ambika Cotton,
Amarjothi Spinning Mills, and Nahar Spinning
HDFC AMC and Nippon Life this was caused by withdrawal HDFC AMC Nippon Life AMC UTI AMC cally been a good month for sav- The March quarter results, thus, Mills, have done well over a six-month period.
AMC have gained 20-23 per cent from the liquid or money ings products across categories, for will be critical for gauging the However, they have seen some correction over
FY22 PE* (x) 40.90 45.90 19.80
in a year, while UTI AMC has market category. reasons such as tax incentives. company’s financial strength. the past month, along with the broader
recorded 23 per cent gains after its Analysts at Nomura say AUM Year-to-date gains 1.16 18.58 5.47 Given the tax relief that MFs enjoy, Given the doubts over the sus- market. Industry players say this has put the
listing in October. However, year- drags for fund houses have One-year gains 20.62 22.87 23.15# March could be an isolated month tainability of equity inflows, the stocks once again on HNI radar.
to-date in 2021, AMC stocks reduced considerably, thanks to * Estimated price to earnings; # gains since listing
of a rebound in net buying of share of which forms 35-39 per SUNDAR SETHURAMAN
(excluding Nippon) have struggled the sharp run-up in equity mar- equities. Therefore, it may be too cent of total AAUM (down from 37-
to hold on to gains. kets. Though equity flows are turn- couple of quarters. How well the 9, DIIs have bought (net) ~858 crore early to say that the worst in terms 45 per cent a year ago) for listed MFs buy 1.5% stake in Timken India
The recent data for March, ing positive, they remain watchful financials rebound in FY22 also of Indian equities, whereas they of redemption pressure is behind. AMCs, and given that it is a meat- At least large mutual funds (MFs) have bought
however, comes as a respite to of the environment. hold key. Data on turnover of were net buyers to the tune of Further, experts and industry ier revenue-generating product, shares of Timken India. On Friday, HDFC MF
investors. There was a net inflow Further, in the context of domestic institutional investors ~2,082 crore, on March 31. are cautious, despite SIP data investors should tread carefully and Nippon India bought shares worth ~125
of ~11,485 crore into equity expensive valuations (see table), (DIIs including MFs), according to Sebi data on MFs (as of April 6) showing an improvement over with these stocks. crore and ~27 crore, respectively, shows the
schemes, though the MF industry, this approach is warranted. For the BSE, doesn’t indicate any suggests AMCs remain net sellers previous months. Booking profits may be wise, bulk deal data released by stock exchanges.
as a whole, witnessed net outflows this, the sustainability of March’s trend of them have convincingly of equities, with ~403 crore of With redemptions taking cen- considering the near-term outlook The shares were bought at ~1,360 apiece, and
of ~2.13 trillion, across all segments. inflows needs to be tested for a become ‘net buyers’. From April 1- shares sold. Further, marred by the tre-stage for the majority of FY21, for equities. represent 1.5% of the firm’s equity. Shares of
Timken India last closed at ~1,385 after gaining
6 per cent during the week. MNC firm Timken
India is a manufacturer of bearings and power

Best start to ECM activity in three years At 1.67 mn, March logs most transmission products. Analysts say after a
sluggish FY21, the company could bounce back
strongly in FY22. MAYANK PATWARDHAN

The domestic equity capital markets (ECM) raised $7.3 billion during the first
quarter of 2021, up 13.4% in proceeds from the first quarter of 2020, registering the
best start to a year since 2018 when $8.8 billion was raised. While the first quarter
SIP registrations in FY21 EVENTS THIS WEEK
of 2021 was fertile ground for
equity issuances, the outlook
But experts are in SIP BY SIP (In mn) SIP accounts got registered, while 8.6
million SIP accounts were closed. The Date Particulars
for the current quarter hinges wait & watch mode Closures fell in March closure figure included SIPs that were
12-Apr  India - CPI & IIP figures
on how the secondary market abruptly discontinued and also the ones
CHIRAG MADIA
No. of new No. of SIPs
whose tenure completed. SIP is a method  Results: TCS
behaves. Investment bankers SIPs registered discontinued* of investing wherein an investor chooses
say if volatility, as seen over Mumbai, 11 April 13-Apr  US - CPI & core CPI figures
Apr ‘20 0.75 0.54 a mutual fund scheme and invests the  UK - industrial &
the past few weeks, remains
As many as 1.67 million new systematic fixed amount of his choice at fixed inter-
elevated, it can dent ECM May ‘20 0.81 0.65 manufacturing production
investment plans (SIPs) were registered vals. Industry executives said a slew of
activity. in March, the highest for the financial Jun ‘20 0.91 0.66 new fund offers (NFOs) launched in  UK - trade balance
ECM ACTIVITY Follow-on offerings,
which accounted for 67.9% of
year 2020-21 and 42 per cent more than Jul ‘20 1.10 0.72 March supported flows. “The surge in  UK - monthly GDP figures
the monthly average for the year. net inflows can also be attributed to  China - imports, exports &
The first quarter of 2021 proved fertile ground India’s overall ECM proceeds, Aug ‘20 1.10 0.76
The number of SIPs discontinued NFOs and there was a lot of churning trade balance
for equity issuances
raised $5 billion in the first also fell to 0.71 million in March, from Sep ‘20 1.04 0.73 from one fund to another,” said a senior
Proceeds ($ bn) 0.79 million in the previous month. Total official from the leading fund house. 14-Apr  Results: Infosys
8.8 quarter of 2021, up 16.5% from
contribution through the SIP route also Oct ‘20 1.13 0.79 In March, the industry raised
6.4 a year ago. IPO by Indian 15-Apr  India - WPI figures
7.3 companies started strong and rose to ~9,182 crore in March, against Nov ‘20 1.06 0.72 around~4,500 crore through NFOs from  India - imports, exports &
totalled $2.3 billion in the first ~7,528 crore in February. Total SIP con- across categories. Total fund mobilised
Dec ‘20 1.42 0.78 trade balance
3.9 3.7 quarter of 2021, a 98.7% tribution in FY21 stood at ~96,000 crore, by debt-oriented schemes was ~1,784
against ~1 trillion seen in FY20 — which, Jan ‘21 1.64 0.77 crore, while equity schemes and other  US - jobless claims
increase YoY. It was the best industry players said, was encouraging schemes (passive and fund of fund) col-  US - industrial &
first quarter period for IPOs Feb ‘21 1.49 0.79
for a pandemic-stricken year. lected ~794 crore and ~1,961 crore, respec- manufacturing production
since 2018, when $2.9 billion Also after eight straight months of out- Mar ‘21 1.67 0.71 tively, in March.  US - NAHB Housing Market
was raised. Indian Railway flows, equity-oriented schemes reported *Also includes tenure-completed SIPs Source: Amfi “Net flows were witnessed across Index
2017 2018 2019 2020 2021 Finance Corp’s $635.5-million net inflows of ~9,115 crore in March. The equity fund categories in March. While
 Results: Wipro
IPO in January is the largest revival in flows and an uptick in new sidelines had started re-investing. Given it’s too early to make any conclusions, it
56 95 38 29 52 maiden offering, so far, this accounts is an encouraging sign for the the current scenario in the country and seems like equity investors waiting on 16-Apr  China - GDP figures
Number of issues year. ECM issuance from the ~32-trillion domestic mutual fund indus- announcements of some restrictions by the sidelines for a market correction have  Results: Mindtree
Source: Refinitiv financial sector accounted for try. But experts say the resurgence in state governments, there is likely to have started making allocations taking a long-
Covid-19 cases can impact future sales. some impact on equity inflows over the term investing view on equities, as 17-Apr  Results: HDFC Bank &
majority of India’s ECM activity with a 41.6% market share worth $3 billion in
“During the start of the month, there next few months,” said Jimmy Patel, MD should be the case,” said Kaustubh ICICI Lombard
proceeds, up 91.5% YoY. Real estate took second place with a 14.3% share, while
was a feeling that Covid crises were and CEO at Quantum AMC. Belapurkar, director-manager research,
materials rounded out the top three with an 11% share. ASHLEY COUTINHO
behind us and investors waiting on the In the last financial year, 14.13 million Morningstar India. AGM & Results filtered for BSE100 companies
Source: Bloomberg/exchange/websites
Compiled by BS Research Bureau

‘Led by US, global markets should see happy FY22’ FY22 looks good for IT and
private banks.

How much of the commodity

TOP BULK DEALS
The recent movement curbs, especially in Maharashtra and Delhi, have on infrastructure. As US val- also rupee depreciation), and cement and pricey sectors like price surge is the financial Date Scrip name Client name Price(~)
kept the markets nervous over the last week. R VENKATARAMAN, chairman, uations stretch, money flows the insurance sector will do well. fast-moving consumer goods markets pencilling in
IIFL Securities, tells Puneet Wadhwa in an interview that he will use a will head back towards EMs over We also like private banks, as (FMCG), paints, etc. right now? Apr 9 Timken India Tricot Investments (S) 1,360
correction in the markets to buy stocks and sees a 10-12 per cent return the medium-to-long term. they shall see loan growth accel- The commodity price surge is Apr 7 Aurobindo Jhunjhunwala 906
in FY22. Edited excerpts: eration and lower non-perform- How are you interpreting the not really a headwind for the Pharma Rakesh (B)
As a strategy, would you look to ing assets (NPAs) than currently recent statements from global markets. The rise of commod-
What’s your outlook for the EPS growth is likely to be largely sell on a rise or buy on a dip? provisioned for. We are under- central banks? ities and higher interest rates Apr 7 Aurobindo Rare Enterprises (S) 906
markets in FY22? reflected in market returns, We would like to buy on a dip. weight on domestic cyclicals like The US Fed and the RBI have have resulted in preferences Pharma
The Nifty is at 21x FY22 earnings hence expect 10-12 per cent We expect the rupee to weaken both committed to easy money shifting from high growth Apr 8 Tata ConsultancyGovernment Pension 3,271
per share (EPS) and looks good broad returns in the current versus the dollar, as have other conditions and until normalcy names to lower equity duration Services Fund (B)
to hold its rating from a 12- financial year. While we expect EM currencies. This trend is (employment in the US and sectors. In aggregate, since this
month perspective. In the short smaller companies to be hit likely to continue for the next six financial stability in India) is is due to a collective global eco- Apr 8 Tata ConsultancyGovernment Pension 3,271
run (the next six months), there more by high input costs, they months. The Indian economy restored. However, as rates rise nomic rebound (and in more lib- Services Fund (S)
may be hiccups like high inter- will sport greater top-line recov- may progress in fits and starts, in the US, and the US Fed only eral pro-business policies in Apr 8 ICICI Bank Government Pension 578
est rates in the US, need for the ery momentum as the confi- and the relatively slow progress controls the short end. Thus, India as seen from the Budget) Fund (B)
rupee to correct, high commod- dence returns in the economy. of vaccination in India means capital outflow risk does plus monetary and fiscal sti-
ity and crude prices, Mid-and small-cap that we will be slower to recover become significant for EMs, muli, the yield surge is being Apr 8 ICICI Bank Government Pension 578
and the second indices should out- compared to the US. especially a commodity import- taken its stride by the markets. Fund (S)
Covid wave. But perform. ing EM like India. It would have been worrisome Apr 9 Timken India HDFC Mutual Fund (B) 1,360
once we are past the Your sector preferences… had higher yields not been
second wave, the Are the risks to the Against this backdrop, informa- What are your accompanied by greater growth Apr 8 Indiabulls Aubrey Global 193
economy should downside more as tion technology (IT), expectations from the visibility, but that is not the case. Housing Finance Emerging Markets (S)
resume its onward R VENKATARAMAN compared to the exporters (chemicals), March 2020 quarter Apr 9 Timken India Nippon India Mutual 1,360
momentum and be Chairman, triggers for an global cyclicals (strong earnings? What about retail participation Fund (B)
able to take the other IIFL Securities upside? beneficiaries not only of We think commodity in the equity markets?
factors in its stride. At present, there is high commod- companies will see Retail investor participation is Apr 7 Barbeque Integrated Core 545
Led by the US, global markets limited downside risk to the ity prices but large upgrades — likely to increase, not only Nation Hosp. Strategies Asia Pte (S)
should see a happy FY22. markets — the second Covid companies like Tata because equity as an asset class Apr 6 Reliance HousingDevelopment 41
Hopefully, the vaccines will see wave being the main threat. Steel, Hindalco, etc. is easily available because of
AT PRESENT, THERE Infrastructu Finance Corp (S)
the back of the virus. FY22 could Currently, global markets are Consumer electri- awareness, mobile apps, and
be another major year for equity still in a risk-on mode, though IS LIMITED cals and autos may internet availability. There is a Apr 9 Sayaji Hotels Azhar Yusuf 225
raising through initial public some money has shifted back see downgrades, as large retail segment that has just Dhanani (B)
offers (IPOs). We see a substan- from emerging markets (EMs) to DOWNSIDE RISK TO weak demand con- entered or is waiting to enter Apr 9 Sayaji Hotels Kayum Razak 225
tial pipeline of transactions, the US and some other devel- THE MARKETS — ditions imply lim- equities. Retail investors have
Dhanani (S)
which are at various stages of
execution.
oped markets (DMs). More
attractive yields in those regions
THE SECOND COVID ited ability to take
price hikes for offset-
become smart and do a lot of
research before taking the Apr 7 Barbeque UTI Mutual Fund (B) 580
have pulled back capital, plus WAVE BEING THE ting significant raw plunge into the markets now. Nation Hosp.
Should investors temper their the US has come out swinging MAIN THREAT” material cost increases. There is a lot of asset diversifi-
return expectation? with huge fiscal stimuli focused cation as well. (B) -Buy (S) -Sell Source: Exchanges
.
NEW DELHI | MONDAY, 12 APRIL 2021 PERSONAL FINANCE 11 <

Stick to asset allocation Invested in equities during last

during Covid 2.0
12 systematic monthly transfers. I
converted these into 12 systematic
weekly instalments to benefit from the
year’s fall? Book profit now
current slump.
I have given the same advice to my
Try to make up for months; and a business owner,
12 months.
clients, who have all followed it. I resis- lower savings last Ensure adequate coverage
ted suggestions from some of my more
aggressive clients to invest lump sums year by curbing Above, we said that if your cur-
into equity. I suggested the same
weekly instalment approach to them
expenses, not rent expense is ~10 lakh a year,
you should aim for a retirement
as well. I don’t have a single client who by taking corpus of ~3 crore by 60.
FRANKLY SPEAKING wishes to reduce equity exposure, so I
higher-risk bets
Suppose you are 40 and have a
didn’t have to do much counselling in corpus of ~1 crore. Then you
HARSH ROONGTA this regard. should have life insurance
It takes courage to invest in equities worth ~2 crore to cover the short-
at a time like this. How we behaved SANJAY KUMAR SINGH fall. Alternatively, buy life insur-
As Covid rears its ugly head again, I during the Covid-19 outbreak will be ance equal to 15-20 times your

T
revisit the column published on March part of our battle stories. I am prepar- he start of the new finan- annual salary and reduce it as
19, 2020. Rumours and fear were ing my clients and myself to have good cial year is an excellent you move closer to retirement.
running rife as Lockdown 1.0 began stories to narrate. As they say, courage time to review your port- “As age increases, the number
from March 25, 2020. I want to reiter- is not the absence of fear; it is the abil- folio. Any tweaking you do of years of work life that a per-
ate to my readers the advice I had ity to act despite the fear. So even if should be based on market per- son can lose due to untimely
offered then. you are afraid, be courageous. formance over the past year, death reduces,” says Indraneel
Here is an abstract of what I wrote: (Abstract ends.) expectations from the coming Chatterjee, co-founder and prin-
For one, I am afraid, but not paralysed. Personally, I have taken these les- year, and change of rules that cipal officer, Renewbuy.com.
In 2015, I had come down with swine sons to heart. We have closed the office could affect your investments. If you got married, had a
flu. I remember the wave of fear that down and shifted back to work from child, or took a home loan dur-
swept through me till a doctor friend home. I have stopped stepping out of Did you save enough? MAKE A STRONG START TO NEW FINANCIAL YEAR ing the previous financial year,
calmed me down. He pre- my home except for the Begin by checking whether you may need to enhance your
scribed some medicines and The advice to daily walk. I pray that if you managed to save at the  Decide whether you will stick to the old tax regime SIP to benefit from life cover. But if you managed
asked me to rest and stay manage investments Covid visits me or a rate you had targeted. “Ideally, opt for the old or the new  Make PPF contribution early rupee-cost averaging to reduce your liabilities, you
hydrated. I had a reasonably through appropriate loved one, hospitalisa- you should try to save 50 per tax regime so that you enjoy its tax-free  Submit Form 15G or 15H to may reduce your cover.
fast recovery, so much so allocation between tion is not required. cent of your post-tax income,”  Begin Section 80C return for the entire year avoid TDS deduction if you Reviewing one’s health
that the only reason I debt, domestic Getting a hospital bed says Avinash Luthria, a investments if you plan to are eligible cover is crucial. “A well-to-do
remember the episode at all equity, international in Mumbai requires Sebi-registered investment  Begin investing in ELSS via person living in a large city must
is because of the diagnosis equity, real estate contacts at a level that advisor and founder, have a base cover of ~10 lakh and
of swine flu. and gold remains lesser mortals can only Fiduciaries. If that is difficult, Synchronise asset Gold had peaked in August three-four quarters. If the a top-up cover of ~90 lakh. A
Covid-19 is much more evergreen aspire for. aim for 30 per cent. allocation 2020. If you had trimmed your underperformance continues, middle-income person living in
contagious. The same doctor On the professional To assess whether you are Due to market movements, your position in the yellow metal exit it. Minimise cost by ensur- the top 25 cities beyond the
friend has told me that given my fitness side, the advice of managing invest- saving enough for retirement, portfolio’s asset allocation may then, you may be underweight ing you pay tax on long-term metros should buy at least a ~5-
level, I am likely to survive even if I do ments through appropriate allocation use this rule of thumb. “At 60, have deviated from the pre- and may need to add slightly to capital gain. 7.5 lakh cover,” says Chatterjee.
get it. But I need to maintain social dis- between debt, domestic equity, inter- you should have a corpus equal decided level. The equity mar- your position.
tancing to not pose a danger to others, national equity, real estate and gold to 30 years of annual expense,” ket had corrected steeply in end To realign an overweight Is your emergency corpus Tax matters
including my loved ones. I remain wor- remains evergreen. Using the fall in says Luthria. If your current of March 2020 and then rallied position, either sell a portion adequate? If you have not submitted Form
ried about my bedridden elderly father markets in March 2020 to move from expense is ~10 lakh a year, aim sharply in the ensuing months. of the outperforming asset Last April-May, many people 15G/15H, do so right away.
and other senior members of my debt to equity proved a winner surpris- for ~3 crore by 60. By 40, you So, the category average return class or buy more of the under- had lost their jobs and the “Individuals submit these dec-
family, as they are vulnerable, and am ingly quickly. Sticking to the pre- should have saved 10 times your over the past year for various performing asset class. The equity market had also fallen laration forms to tax deductors
taking all measures to protect them. decided asset allocation remains a dif- annual expense; by age 50, 20 equity segments appears very latter method is more tax-effi- sharply. Withdrawing money (like banks) for non-deduction
On the social distancing front, I ficult decision even when equity times, and so on. high: large-cap funds have cient, but you need additional from your equity portfolio of TDS if their total income is
have asked the entire staff at my bou- markets remain buoyant despite Covid If your income got disrupted yielded 59 per cent; mid-cap capital for it. would have been disastrous. below the basic exemption lim-
tique investment advisory firm to work 2.0. We are still in the process of mak- last year, you may have saved funds, 81 per cent; and small- If you are close to a goal, shift That is why you need an emer- it,” says Suresh Surana, founder,
from home. The only time I am unable ing our stories on how we behaved less than your target rate or even cap funds, around 100 per cent. from equities to debt. gency corpus invested in liquid RSM India. Form 15G is for res-
to observe social distancing is during during the outbreak of various Covid dipped into your corpus. Try to Your actions now should funds or in a savings-cum-fixed ident individuals below 60 and
my morning walks in an open ground. versions. Let’s make sure we make make up if your income is back hinge upon how you reacted in Check fund performance (sweep) deposit account. Form 15H is for senior citizens.
Now, turning to the professional stories that we are proud of narrating on track. “Do so by spending less April-May 2020. “If you had Look at a fund’s 10-year per- A double-income family Finally, decide whether you
side. In the case of my own in the future. and investing more, and not by invested in equities when the formance. If it is significantly should have an emergency cor- will go with the old or the new
investments, I was in the middle of undertaking higher-risk invest- markets were down, you may be below its category average pus equal to three months of tax regime. “Inform your
shifting a reasonable amount from The writer heads Fee Only Investment Advisers ments,” says Vishal Dhawan, considerably overweight cur- return, stop investing more into household expenses, including employer to avoid unnecessary
debt to equity mutual funds through LLP, a Sebi-registered investment adviser chief financial planner, Plan rently and may need to trim it and put it on your watchlist. EMIs; a single-income family, TDS deduction from your sal-
Ahead Wealth Advisers. exposure,” says Dhawan. Monitor its performance for six months; a gig worker, six ary,” says Surana.
12 MONEY MANAGER
>
NEW DELHI | MONDAY, 12 APRIL 2021

Ramachandran, Visa’s Group Country

Manager (India & South Asia). “It helps
banks and digital payment providers
to offer their consumers a safe, simple,
and consistent purchasing experience,
regardless of where they are and what
form factor they are using.”
Adds Tanya Naik, head of online
and omnichannel business at Pine
Labs, a platform that provides mer-
chants with payments solutions: “From
a processing standpoint, it’s truly seam-
GUEST COLUMN less across payment processors, gate-
ways and banks. This model can help “Tokenisation helps to offer
KETAN GAIKWAD merchants move customers to online
payments while at stores, or click- and- consumers a consistent
collect as required.” purchasing experience,
TReDS can be This means you can originate a
transaction and pay through a variety
of devices — desktops, laptops, tablets,
regardless of where they are
and the form factor”
a lifeline for or your watch. You can also ensure that
if a device is compromised, the mother
card — physical or virtual — is not. If
T R RAMACHANDRAN
Group Country Manager (India & South Asia)
Visa International

small you were to weave in the internet of

things into the plot, you can pay via your

End of the
oven, too. The tricky part is while you
businesses can do all of this, you can’t expect this
of banks, which need two years to com-
ply with an RBI circular on auto-debits.
Micro, small and medium enterprises
(MSMEs) are vital towards building a $5 Another layer of complexity

plastic smile
trillion economy. The pandemic saw many All this is tough enough. Now, the
MSMEs face a massive liquidity crunch, and Unified Payments Interface (UPI) is
this makes TReDS (Trade Receivables adding another layer of complexity.
Discounting System) a key platform to revive Merchants don’t see any value in pay-
the economy by providing financing to small ing the inter-change when the UPI
businesses. freeway is available. In fact, the suc-
Central public sector enterprises (CPSEs) cess of zero inter-change (on transac- “It’s an insult to one’s
are mandated by the government to procure
at least 25 per cent of their purchases from Tectonic change is roiling the credit card industry, and the rules of tions of up to ~2,000) at over 200 mil-
lion outlets means new revenue mod-
intelligence to state that the
changes are only in the form
MSMEs and to register on TReDS. Since the
government and its CPSEs are the single the game are being reset, reports Raghu Mohan els are in the offing. And, juxtaposing
the technology and acceptance net- factor. These will alter the
largest institutions that procure from

L
work to an under-penetrated credit
MSMEs, their potential to promote its use ast month, the Reserve Bank of spends (and have a primary card as well), — valuable because they represent card market opens the doors for new- business model itself”
and grow the transaction volumes on TReDS India (RBI) relaxed the deadline it follows that they don’t make enough much more than pieces of plastic. In age entities to build a business VISHAL RANJAN
is immense. In the current economic climate, for banks to comply with the of it. The average card-spend — a claimed tokenisation, the 16-digit number on through credit and credit-line solu- Founder and Chief Executive
CPSEs can act as saviours that have the additional factor authentication ~9,000 — is misleading; it is much lower. the credit card is never flashed at tions, even outside the Visa and Officer, vCard
potential to provide liquidity to MSMEs by for recurring online payments by six There’s also growing realisation that the merchant outlets — you get a code MasterCard platforms.
ensuring payment of their dues on time. months, to September 30, 2021. Reason: business could be reimagined outside of much like a one-time password. Deal Take the RBL Bank-vCard, a down- Corporation of India is evolving poli-
According to a gazette notification of Over 18 months after the central bank the Visa and MasterCard networks. done, the token may expire. Virtual loadable mobile credit app. Issued cies regarding interchange for UPI
November 2, 2018, all CPSEs and private mandated the switchover in August cards are just that — virtual, but you together with a physical MasterCard, it credit cards. How is the merchant dis-
companies with a turnover of over ~500 crore 2019, banks are still not ready. But reg- On the ground can tokenise them as well. allows traditional inter-change revenue count rate (MDR) to be seen in these
are to be registered on any of the TReDS ulatory forbearance may not save them Tokenisation and virtual cards have “With commerce increasingly going opportunities, plus a vCard credit line credit cards? “Processing virtual cards
platforms. The issue lies in whether they are from the march of technology. Take a reared their heads (the terms are digital, the payments industry has — a daily interest-bearing product cre- through the UPI implies interoperabil-
using TReDS to settle the payments of their look at the credit card industry, where used inter-changeably). Think of the expanded to provide plastic as well as ating interest-based income. Instead of ity of the best kind. However, the fund-
tectonic changes are on the way. first as “chips” used at a poker game digital credentials,” says T R focusing on salaried super prime cus- ing type for virtual cards needs to be
You have close to 60 million credit tomers, vCard helps builds a portfolio to clarified,” explains Naik.
cards, but only about 35 million are service prime and near-prime customers If virtual cards are issued as stand-
with unique customers — millions of “Processing virtual cards through products. Several small finance alone credit, she adds, the transaction
cards are just one more in crowded wal- through the UPI implies banks and non-banking financial com- MDR on UPI cannot apply, given that
lets. It’s an expensive business to be in
— cold-callers have to be paid ~4,000
interoperability of the best panies are said to be in discussions with
fintechs to adopt this model.
the underlying nature of the transac-
tion is a credit transaction. And for vir-
per card issued; there are 24x7 call cen- kind. However, the funding “It’s an insult to one’s intelligence tual cards that are in the nature of an
tres to maintain, billing disputes, type for virtual cards needs to state that the changes are only in overdraft facility on the bank account,
reward programmes to run, and frauds the form factor. They will alter the the interchange rules may work as a
to be factored in. Plus, small-ticket col- to be clarified” business model itself,” says Vishal UPI transaction, as the underlying
lections are just not worth the cost. TANYA NAIK Ranjan, founder and chief executive funding instrument is a bank account.
And to the extent that issuers make Head, Online & Omnichannel Business officer of vCard. Clearly, the plastic smiles are
money only when customers roll over Pine Labs The National Payments wearing thin.
The government MSME suppliers or
and its enterprises not. Since 2017,
are the single TReDS has enabled
largest agencies over 20,000 MSMEs
that procure SHARE OF INFUSION IN
IN THE FINE PRINT
to receive over
goods from
MSMEs. They need
~30,000 crore in
payments on time.
RISK-WEIGHTED ASSETS
to use the Trade However, this (%)
Receivables represents only a
The Centre’s move to inject ~14,500 crore in four
UCO
Discounting fraction of the state-run banks through zero-coupon bonds will
System to make overall amount bolster their regulatory capital levels, but their BOI
timely payments public enterprises lower intrinsic values will not
to such businesses spent on strengthen their tangible equity by IOB
procurement from as much. Of this, the Central Bank of
MSMEs. CBOI
TReDS is being perceived as a simple India is to get ~4,800 crore, Indian
compliance requirement rather than being Overseas Bank ~4,100 crore, Bank of P & SB
effectively utilised for its ability to provide India ~3,000 crore and UCO Bank
0 2 4 6 8 10
quick, easy, and low-cost finance to MSMEs. ~2,600 crore. Source: Ind-Ra estimates
When it comes to active use of the platform, According to India Ratings &
of the 156 CPSEs that have registered, only 32
have undertaken any transactions. And of
Research (Ind-Ra), these securities GAP BETWEEN ABSOLUTE AND TANGIBLE INFUSION
this number, only eight have disbursed more would be factored at par value rather than (~ CR) INFUSION TANGIBLE INFUSION
than ~10 crore worth of payments, as of at the discounted value in the banks’ 6000
September 30, 2020. balance sheet. These banks have weak 5000
Information technology infrastructure tangible buffers, or a weaker ability to build and 4000
and processes are fundamental to the TReDS maintain capital buffers. Ind-Ra believes that the 3000
system, and while CPSEs have been at the
intrinsic net worth of these instruments could be lower 2000
forefront of adopting efforts at digitisation,
sometimes the sheer size of the enterprises by more than 50 per cent at the outset than similar 1000
creates challenges when it comes to maturity government papers. The illiquid, 0
P & SB CBOI IOB BOI UCO
implementing changes. When it comes to non-trading nature of these securities could add Source: Bank Data, Ind-Ra; the maturity value of the bonds is discounted by 6.2% annually to arrive
procurement, CPSEs rely on existing to the discount. IMAGING: AJAY MOHANTY
at the tangible infusion at the outset
channels with legacy solutions. TReDS
enforces payment discipline, and puts an
end to the free credit enjoyed by CPSEs and
corporates at the expense of MSMEs.
Numerous MSMEs have reached out to us
complaining about the highhandedness and
use of old ways to settle their dues.
‘Longer forbearance will help in conversion to a bank’
For MSMEs, the priority right now is Shriram City Union Finance (SCUF) has seen a big rebound in its business — collections are up sharply, and the book under moratorium is only at seven yours at a time when regulations are more or
access to liquid cash, and TReDS can be the per cent. The deposit-accepting shadow bank is at an inflexion point, given the emerging regulatory framework, with the Shriram Group set to revisit less aligned with those of banks?
enabler. A report on the amendments to the its banking ambitions.Y S CHAKRAVARTI, the firm’s managing director and chief executive officer, spoke to Raghu Mohan. Edited excerpts: We are more or less aligned with banks on
Factoring Act, by the Parliamentary regulations. In fact, I am of the view that we have
Standing Committee on Finance led by much stricter NBFC regulations when compared
Jayant Sinha, has recommended taking the What explains the big bounce in your business average ticket size of about ~55,000; so too, in ~1.40 trillion in assets, out of which we have to banks today. We are on Ind-AS (the
legislative route to make it compulsory for in the third quarter of FY21 at 27 per cent year- gold loans. Then, 99.9 per cent of my other about 50 per cent of borrowings from Indian Accounting Standards). In
the receivables coming from central and on-year, and will it sustain, going forward? customers and the majority of the MSMEs have banks and 50 per cent from retail. So, what provisioning, banks have an edge —
state governments to be brought under the Small borrowers got squished, particularly not opted for a moratorium. Most of them said if the RBI were to put a constraint on they get a tax relief which we don’t get.
ambit of TReDS, in order to ensure timely businesses dependent on working capital from that they will delay by two to three months in banks, or on us, saying that you can’t You see, I am 200 per cent clear that
payments. other than banks. And most of the non-banking servicing loans, but have not opted for a borrow so much from banks; or you need there should be banks and NBFCs,
Another important suggestion made in financial companies (NBFCs), too, had slowed moratorium. to reduce your borrowings from banks? It and there should be a partnership
the same report makes a case for the down. When businesses restarted, the credit can be an issue. So, even if the RBI says, between the two of them, rather than
integration of TReDS with the GSTN cycle — on the goods sold on credit to them — The Reserve Bank of India (RBI) has aligned come and start a bank, my concern is I saying that only banks should exist —
e-invoicing portal, leading to automatic had also shrunk from 30 days. It went regulations of NBFC and banks. Will have two NBFCs, and RBI may not allow because I don’t think they have the last-
uploading of all GST invoices. A compulsory down to 15 days, and from 15 days to you revisit your banking ambitions them to exist along with the bank. mile connectivity of NBFCs. Now,
listing of all GSTN invoices on TReDS, and seven days. And you had to push more in the context of the internal let’s assume that I do not
the consequent tracking of when these working capital into business. The working group’s (IWG’s) draft? Will a five-year glide path become a bank, but
payments are made, provides excellent segment we handle — retail, trading, Revisiting our banking ambitions work for you? continue as an NBFC.
economic data on the state of the economy. It grocery stores, pharmacies — saw could happen, but not because of the It is difficult for me. You Well, even then, I can
will also provide valuable credit information business volumes bounce back. And Y S CHAKRAVARTI IWG. The revised regulatory need to reset your partner with banks
to enable the credit scoring of various therefore, our numbers have seen a Managing Director framework for NBFCs (which was liabilities. Current and and get into the
companies and government entities. sharp rise in lending. The third quarter & CEO, Shriram City released subsequent to the IWG’s savings accounts of co-lending model.
Another much-awaited and effective reform was not an exception because of the Union Finance draft) has four layers — base, middle, ~70,000-80,000 crore
in-the-waiting has been to allow non- festive season. The same thing upper, and possibly, a top layer. I am in five years to replace What is the status of
banking financial companies (NBFCs) — happened in the fourth quarter also. It is a at ~30,000 crore in assets, but Shriram existing liabilities is fundraising in Shriram
other than NBFC Factors — to discount secular bounce-back. Transport is at ~1 trillion-plus, and this may also very difficult. Apart Housing Finance?
MSME invoices on TReDS. As a nation, we place me in the upper deck, when combined. from this, you will We are not going in for
need to move towards respecting the wealth How have collections shaped up in the last six The only thing we are looking at is whether, at also need money for external funding. We have
generators of our country and the credit months, and how much of your book is under the upper level, RBI will restrict our borrowings. growth. The glide decided that SCUF will fund
discipline which gets sacrificed at the altar of the moratorium? In the case of some banks, this That is the only point of concern. You see, path needs to be them. We are looking at an
populist measures. is at 20-25 per cent. regulations, monitoring and all that is not an elongated, not five initial amount of ~300 crore,
In December itself our collections were back to issue — we are ready for that. years. and another ~200 crore in the
The writer is the Managing Director and Chief pre-Covid levels. Our book under moratorium is form of warrants. This will
Executive Officer of the Receivables Exchange of India. at around seven per cent. Fifty-five per cent of Can you please explain what the concern is at Assuming you are not take care of the housing
This column has been edited for space my business is to micro, small and medium the borrowing end? going to get a banking finance company’s capital
enterprises (MSMEs) and 25 per cent is in two- What I’m saying is that the entities (SCUF and licence, what’s the future of requirements for the next 18
wheelers. Our personal-loan business has an Shriram Transport) together will have nearly large NBFC groups like months to two years.
.
NEW DELHI | MONDAY, 12 APRIL 2021 TAKE TWO 13 <

Can Tesla win India? April monetary policy

a fine balancing act
Most American car-makers have failed in making their leapfrogging them and jumping at
zero emissions directly is a faster
gambit one to watch roadmap for the industry to use," Structurally, it’s a well-crafted policy. But like in cricket and politics,
said Mukhtyar.
There’s also a real and present things can change dramatically for a central bank in a very short time
feeling of “range anxiety”. Cust-
omers who drive distances daily will nomic recovery are firmly in place. the policy day. There were sell-offs
no doubt wait for an extensive set In isolation, this could have run the in both offshore and onshore mar-
up to materialise before they dump risk of being interpreted as the kets, indicating unwinding in the
their fossil-fuel cars. RBI’s readiness to shift the stance so-called carry positions. The carry
That makes Tesla's ride even anytime it was convinced of recov- traders borrow cheaply to invest in
harder into India, and while it ery and had an adverse impact on markets where they can earn hand-
recently announced that it wants the bond market. somely. Simply put, they were bor-
to scout around for three show- To neutralise that, it has smartly rowing in the US to invest in India
rooms, here’s how the big-picture poured old wine from a new bottle and making money, taking advan-
plan may be materialising. Phase on the bond dealers’ table. tage of the interest rate differential
One, said an analyst who declined
to be named, may involve using its BANKER’S TRUST In the last fiscal year, it had but the currency risk remains as
bought bonds to the tune of ~3.13 they typically keep their positions
brand cache to attract software tal- TAMAL BANDYOPADHYAY trillion from the secondary market unhedged. Going by one estimate,
ent — after all, code writers and through the so-called open market the size of the carry position
developers now have more of a role operations, or OMO. An Indian ver- reached $40 billion by February.

I
to play in the making of cars than t has been beaten to death by sion of quantitative easing, or QE, Fear of rising inflation could be the
factory workers. Phase Two would banking analysts and econo- it was done in phases looking at trigger for the sell-off.
include rolling out cars, and setting mists through intense discus- the liquidity conditions. This time, The RBI did not rush to intervene
up an ecosystem for business, and sion and dissection. Four days after the RBI committed an upfront liq- in the foreign exchange market, at
Phase Three would be building a it was announced, writing on the uidity support, starting with a least till Friday. With close to $577
component ecosystem for localisa- Reserve Bank of India’s (RBI’s) ~1 trillion bond buying from the foreign exchange reserves in its kitty
tion of parts to drive prices lower, monetary policy is a predicament secondary market in the first quar- (in January, it was over $590 billion),
and that could all happen over a akin to that of Larry Fortensky’s, a ter of 2021-22. and no worry on the balance of pay-
five-year journey. US construction worker who was Starting this week with a ment front, the Indian central bank
Others disagree with the success the seventh and last husband of ~25,000 crore bond purchase, this can afford to be confident at the
rate of that model and say that it’s Elizabeth Taylor (by her eighth initiative is christened “secondary moment. In the past year, a strong
key to first set up the infrastructure. marriage; she married Richard market G-sec acquisition pro- local currency had forced the RBI
Kaushik Madhavan, vice presi- Burton twice). gramme”, or G-SAP 1.0. The RBI is to buy dollars from the market, lead-
PAVAN LALL compact, an area where Tesla is not dent-Mobility at Frost & Sullivan, Fortensky knew well what he not explicit in its commitment on ing to infusion of rupee liquidity (for
Mumbai, 11 April EV SALES IN INDIA present. So will it build an economy points to how electric two-wheeler
car for that space, or concentrate on company Ather Energy is setting
was expected to do on their hon-
eymoon in 1991 at Michael
the size and continuity of this ini- every dollar it buys, an equivalent
tiative but one could imagine that amount of rupee flows into the sys-

I
f prolonged slowdowns last year ! Number of units the premium side of the market?” up a grid charging network across Jackson's Neverland Ranch but his this will continue through the year, tem). A slipping rupee, to the extent
6,200*

across most major Indian cities he said. That is an important choice, the nation. Ola Electric is another challenge was how to be different depending on the liquidity needed of the RBI’s tolerance level, will close
3,600

had one visible benefit with no Desai added. one to have announced plans to from Taylor's previous husbands! in the system. We will see G-SAP that liquidity tap.
3,400

debate, it would be this: Clear blue There is no shortage of EVs being build out a large facility with big On a serious note, presented 2.0 and beyond. The RBI has
skies, less sound pollution and launched in India. Nissan, investments. “If Tesla builds the against a backdrop of falling crude Restoration of the revised its inflation
reduced emissions spewing into our Mahindra & Mahindra, Tata Motors, infrastructure first, then it’s possi- prices, sliding US yield and the sec- old cash reserve ratio projection down-
precious ecosystem. In a manner of Hyundai, Kia, BMW, Mercedes- ble it would be able to crack the ond wave of the Covid pandemic level of banks in two wards to 5 per cent in
speaking, it showed us how India Benz, BMW, and Audi have all either market, purely from the model of gripping India, the first monetary phases from March 27 the fourth quarter of
can look if cleaned up, which in the launched or are launching new EV charging the car. There’s also a policy of fiscal year 2022 has been and May 22 will drain 2020-21. For the cur-
future may happen with the adap- products in the market. sense that it may not go for the con- a fine balancing act by the around ~1.5 trillion rent fiscal year, the
tation of electric vehicles. Kavan Mukhtyar, partner and ventional purchase model like an Monetary Policy Committee from the banks’ kitty. projection is 5.2 per
That turns the spotlight on leader-Automotive at PwC India, MG Hector or Hyundai Kona might (MPC), the rate-setting body of the The G-SAP will neu- cent in the first and
Tesla, the world’s best publicised 2019 2020 2021 said for an industry player, the intro- and opt for a partial or shared own- Indian central bank. tralise that. What’s second quarters; 4.4
* Industry estimates
electric vehicle maker, which has Source: SMEV (Society of
duction of an electric car can help ership. And, look at reducing the There has been no surprise in the impact of this? per cent in the third;
been increasing its attention as Manufacturers of Electric Vehicles) gain incremental market share in carbon cost of ownership and RBI keeping the policy rates Last Friday, the 10- and 5.1 per cent in the
well as announcements on enter- the short term and amplify its mar- thereby get on a par with diesel and unchanged and continuing with its year bond yield At this point, inflation fourth, with “risks
ing India in recent times. Yet, ket presence but the numbers are petrol vehicle prices," he said. "If accommodative stance. The fact dropped below 6 per projection — even broadly balanced”.
despite its prowess in new-age cars at IHS Markit. “It will be interesting still small. Last year, India sold they are to be successful, they are that this was a unanimous decision cent intra-day to 5.97 though it is at the The projection for
and the cult of personality leader- to see if Tesla’s entry can give the around 3,000 cars, which may have likely to do it in Phase One because by all six MPC members is also no per cent but closed at upper band of the real GDP growth for
ship along with mass social media segment a boost.” gone up to 12,000-15,000 units on there is no baggage of petrol or surprise. But there are at least a 6.02 per cent, sliding flexible inflation 2021-22 has remained
followings that leader Elon Musk With localised manufacturing account of domestic product diesel factories to contend with.” couple of initiatives that showcase some 18 basis points target — looks a bit unchanged at 10.5 per
wields, the subcontinent, as many or assembly, Tesla becomes eligible launches such as the Tata Nexon, Of course, how regulatory change Governor Shaktikanta Das’s knack in the new fiscal year conservative, while cent — consisting of
American manufacturers (Harley- to be in the 5 per cent GST bracket which are priced at roughly ~14 lakh. may throw a spanner in the works for innovation in troubled times to that started in April. India’s ability to 26.2 per cent in the
Davidson, GM, Ford) have learned, and could price its products more In comparison, Maruti Suzuki sells is anyone’s guess. steer the economy through and (One basis point is a contain the fresh wave first quarter; 8.3 per
is one of the hardest car markets competitively. But localised man- some 20,000 units of the Swift tra- So can Tesla crack India? "If suc- ensure that the cost of government hundredth of a per- of the pandemic holds cent in the second;
in the world to crack. ufacturing takes time and patience ditional fuel hatchbacks monthly cess is measured by volumes sold borrowing is reigned in. centage point.) the key to growth 5.4 per cent in third
What will it take for Tesla to plug and to coin an analogy is much like on average. in India, I am doubtful whether Till February, the RBI had been In tune with its and 6.2 per cent in
and play in India? Sector pundits setting up a kit- Tesla will sell in signif- giving a long forward guidance — balancing act, the RBI also decided the fourth.
say it’s a mix of strategy, getting the chen for a hotel. A Tesla model 3 is priced at around $40,000 or roughly icant numbers. But if to continue with its accommoda- to conduct variable rate reverse Structurally, it’s a well-crafted
price right, timing, the right talent, There’s loads of ~28 lakh abroad. Here that could easily reach around it is in terms of build- tive stance as long as necessary. In repo auctions for a longer term to policy. But like in cricket and pol-
and above all, patience. practice and trial ~70 lakh or ~80 lakh with triple-digit duties, given that ing the brand, they are fact, it had reiterated the time- drain surplus liquidity on the short- itics, things can change dramati-
A Tesla model 3 is priced at and error before the company will be importing batteries, drivetrain and already halfway there, based forward guidance in the last er end but, allaying fears of tight- cally for a central bank in a very
around $40,000 or roughly ~28 lakh the final product is the majority of its other components in the beginning even before they have few policy statements, saying the ening, Das promised “ample liq- short time — both for internal and
abroad. Here that could easily reach ready for assem- sold a single car ‘offi- accommodative stance would con- uidity” in the system — “a level of external developments. At this
around ~70 lakh or ~80 lakh with bly-line like accuracy. An additional insight worth pay- cially’,” said automotive author and tinue “at least during the current liquidity that would keep the sys- point, inflation projection — even
triple-digit duties, given that the co- How has that worked for Tesla ing attention to is the fact that journalist Gautam Sen. financial year (ie, 2020-21) and into tem in surplus even after meeting though it is at the upper band of
mpany will be importing batteries, in other markets? When Tesla Maruti Suzuki, with over 50 per cent The other factor is that Tesla's the next financial year (ie 2021-22)”. the requirements of all financial the flexible inflation target —
drivetrain and the majority of its entered China, it was already a market share, has no electric cars entry in India may be about more While that stance remains, market segments and the produc- looks a bit conservative, while
other components in the beginning. growing EV market with huge in the market, and has chosen to tie than just cars. “Watch closely for there is a subtle but critical change. tive sectors of the economy”. The India’s ability to contain the fresh
“Without localised manufactur- potential supported by a robust gov- up with Japanese major Toyota in what Tesla does in relation to solar This time, the policy document amount and tenure of such auc- wave of the pandemic holds the
ing, even the base model of Tesla ernment incentive programme and a bid to build units with existing energy. Not just making and sell- says, “The stance of (the) monetary tions will be decided based on the key to growth.
(Model 3) would be priced quite a healthy ecosystem of suppliers. electric capabilities. ing, but also perhaps working with policy will remain accommodative evolving liquidity and financial
exorbitantly, in a segment played Rustom Desai, former country head While the Indian customer is regulators to effect faster and pos- till the prospects of sustained conditions but “this is a part of (the) The writer, a consulting editor with
by premium car makers. The pre- of Corning India and visiting faculty notoriously finicky and a stickler for itive change in that industry,” said recovery are well secured while RBI’s liquidity management oper- Business Standard, is an author and
mium car segment is struggling to at the management school of value, there is an advantage that Desai. “If Tesla develops massive closely monitoring the evolving ations and should not be read as senior adviser to Jana Small Finance
break the 50k volume barrier annu- Cornell University, said a part of get- Tesla may enjoy. “Hybrid cars, battery and cell scale, it may end outlook for inflation.” liquidity tightening”. Bank Ltd
ally,” said Suraj Ghosh who leads ting India right will be understand- which are easier to adopt but a tran- up being the supplier of these crit- Clearly, the RBI is not commit- While the bond market cheered Twitter: TamalBandyo
the South Asia division of ing the customer, and design. “The sient technology, haven't really tak- ical electric car components to oth- ting to any timeframe; Das will start the policy, the currency slipped — His latest book is Pandemonium:
Powertrain & Compliance Forecasts mass market game in India is sub- en off in India and, therefore, er EV manufacturers in India.” unwinding once the signs of eco- more than 1.5 percentage points on The Great Indian Banking Crisis

STATSGURU 1: US REVENUE FROM CORPORATE TAXES

AMONG THE LOWEST
2: GLOBALLY, CORPORATE TAXES DECLINED
IN THE LAST DECADE
Data for 2018, % to GDP Average corporate tax rate
Country General govt revenue Corporate taxes revenue
China 28.3 4.5
Indonesia 14.9 4.0
India 20.0 3.5
Brazil 30.6 2.8
United Kingdom 36.8 2.6
France 53.4 2.1
Germany 46.3 2.1
United States 30.0 1.0
Source: KPMG
Note: General govt revenue includes sales taxes, social security contributions, etc Source: IMF, OECD

3: INDIA’S REVENUE FROM CORPORATE TAXES 4: REVENUE FOREGONE NOT SMALL COMPARED
HAS DECLINED TO CORPORATE TAX COLLECTION
Corporate tax Personal income tax % to GDP
3.5
3.3 3.2 3.3
2.7
2.4 2.5 2.5 2.4 2.4 2.4

The corporate tax pitch

2.3 2.3
2.1

ABHISHEK WAGHMARE help governments. How well has India done on

For instance, corporate taxes give the corporate taxes? In September 2019,
US Treasury Secretary US government only worth 1 per cent of Finance Minister Nirmala Sitharaman
Janet Yellen called for gross domestic product (GDP) as rolled out a new low tax regime for FY16 FY17 FY18 FY19 FY20 FY21 FY22
a global minimum revenue, much lower compared to Indian companies. This has hurt Source: Union Budgets Source: Union Budgets
corporate tax to counter emerging markets, and slightly less than revenues. From earning close to 3.3 per
the profit shifting by large the UK, Germany and France. However, cent of GDP from corporate taxes, India
companies. There seems to be a overall government revenue is better in now gets close to 2.4 per cent, shows 5: THE LARGEST INDIAN COMPANIES PAY TAX 6: GOVERNMENT-OWNED COMPANIES END UP
renewed focus on the role of the advanced economies, shows chart 1. This chart 3. Revenue from personal income AT THE LOWEST RATE PAYING TAX AT A LOWER RATE (%)
government after the coronavirus crisis, is likely due to better realisation of tax has improved only marginally.
and this has been especially true for revenue from personal income tax and Meanwhile, the Centre lets go as much Profit before Number of Effective
the US since Joe Biden became indirect taxes. US companies, thus, may as 0.5-0.6 per cent of GDP worth of taxes companies tax rate (%) 28.93 28.17
27.21
the President. be contributing the lowest among peers revenue in the form of incentives to 0 – ~ 1 crore 377,730 26.57 22.73
Tax havens such as British Virgin to the government. companies, reveals chart 4.
Islands, Cayman Islands, Mauritius, In general, the tax rate on But what may be more worrying is ~ 1 – 10 crore 41,586 26.43
Ireland, among many others, which companies has been declining over the that the large Indian companies pay less ~ 10 – 50 crore 7,830 27.63
have been the popular jurisdictions for last decade. Across various regions, as tax, chart 5 finds. This has been the case
big corporations, reduce the potential chart 2 illustrates, corporate tax rates for many years and there is no visible ~ 50 – 100 crore 1,379 27.86
revenue that might accrue to home fell over the last decade. The tax rate change. Furthermore, companies ~ 100 – 500 crore 1,437 28.33
governments. A look at select countries cuts were most pronounced in the North owned by the government pay tax at State-owned Private Manufacturing Non-manufacturing
— four advanced economies, three America region, mostly owing to the US a much lower rate than private ~ 500 crore + 423 25.91 companies companies companies companies
emerging markets and India — shows after the Donald Trump administration companies (chart 6), the Union Budget
the extent to which corporate taxes reduced taxes. documents show. Source: Union Budget 2021-22 Source: Union Budget 2021-22

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NEW DELHI | MONDAY, 12 APRIL 2021 1

SECOND COVID WAVE

Moving day: Eastwards to Japan
No panic exodus but SIDDHARTH SHRIRAM
Augusta Georgia, 11 April
to reduced number of patrons, will also inform
him of what he has to do and where he is.

migrants cautious
The back nine holds special terrors. The
Saturday is said to be Moving Day, when the 10th with its huge false front at the green, the
pulse quickens as the number of holes begin to 11th with its narrow fairway and the pond
run out and those who “expect” to contend, abutting the green, the less said about the 12th
position themselves to take advantage on the the better, and of course if one is thinking of
Sunday. But Justin Rose stayed stock still at (-)7 leaping forward to staunch all challenges, then
ADITI DIVEKAR, CHIRAG MADIA with a Par 72 round while many around him Rae’s creek in front of thirteen and fifteen come
& TWESH MISHRA moved up the ladder to lie tied second with him seriously into play. Dulce periculum!
Mumbai/New Delhi, 11 April at (-)7 (Xander Schauffele, Will Zalatoris, and Of the most likely contenders, those within
the sole hope from Australia, Marc Leishman). six shots of the leader, four out of seven are non-

I
t is around 3 pm at the Chhat- The redoubtable Hideki Matsuyama mounted US. This augurs well for the growth of this sport
rapati Shivaji Maharaj Terminus a late charge after a 75-minute weather delay, worldwide even more. It truly is an
(CST) in Mumbai. Though it’s a which had softened the course to be conducive international sport befitting of national and
Sunday, CST, which is a Unesco world to attacking shots. The greens changed from
Hideki corporate support. More on that tomorrow.
heritage site, is not its usual crowded very fast to slow and those who could adjust Matsuyama It’s interesting to speculate on potential
self. Apart from groups of passengers benefited. Everything worked for Matsuyama outcomes. One may safely say that the
here and there, the platforms are in the back nine as he read the new conditions challenge from the mighty Bryson
hardly packed. Rakesh Kumar, 26, is perfectly and executed shots to set up an eagle LEADERBOARD DeChambeau, for this year at least, has abated.
waiting to board a train to his home- and 4 birdies to be at (-)11, four shots ahead. POS. PLAYERS R1 R2 R3 R4 TOTAL He will not bring the house down. Justin
town in Bihar. He and his friends have Justin Thomas could not adjust and with the 1 MATSUYAMA 69 71 65 205 Thomas, who was one of the favourites going
decided to leave Mumbai. only triple of the tournament on the eagleable T2 SCHAUFFELE 72 69 68 209 in, could not adjust from the fast to the slower
“It was becoming difficult to surv- 13th, has probably shot himself out of T2 LEISHMAN 72 67 70 209 greens and has self-combusted. All the rest,
ive in Mumbai since my employer sto- contention. aside from those within six shots of the leader,
pped paying me salary for the past two Because the Masters does not issue a
T2 ROSE 65 72 72 209 only come into contention in the unlikely event
months,” he says. Kumar worked as a “Greens Book” to players, like a “go to” place for T2 ZALATORIS 70 68 71 209 that they rise like a rocket and all the others
cook at a restaurant, which is barely “gyaan” (knowledge), they must accumulate 6 CONNERS 73 69 68 210 falter and fade away. It’s all possible but we
running now given the increased rest- who is travelling with his four-mem- ness in pre-Covid times. their knowledge through those who have should concentrate on those seven.
rictions, weekend lockdown and night ber family to Uttar Pradesh. Rail ministry officials say multiple learned much before them and from their own own business. Now that he has achieved Enough has been said about Matsuyama as
curfew. Kumar and his friends have According to the Brihanmumbai steps have been taken to check crowd- experience. It’s rare for a first timer to win. instant recognition as a potential Masters the most likely to win by his already having that
decided they will return to Mumbai Municipal Corporation (BMC), there ing at stations. These include making Zalatoris is in position for that, but even if he Champion, in the USA and worldwide, people four-stroke lead and his general composure.
only once the situation normalises. were 9,327 positive cases on Saturday, platform tickets costlier and disallow- doesn’t win, or does, his knowledge for the next are surprised that he is married, has a kid, and Leishman has performed well here, even
At the Lokmanya Tilak Terminus taking the total number of active cas- ing entry of unreserved passengers. time around will increase. Some are fast lives in the area of Japan that was devastated by through family trials, but has not closed the
(LTT) in the Kurla suburb of es to 91,108. Stricter screening measures have also learners, such as Tiger Woods or Jordan Spieth, the Tsunami. If nobody asks him, he sees no deal and, therefore, the prospect of Australia
Mumbai, Kunal Mishra, 28, and his Though both Bandra Terminus increased the time one takes to reach but there is no guru who can tell you what to do reason to tell. He is different from the flam- winning a second green Jacket are distant.
brothers are waiting for their train and LTT are not overcrowded, social the railway platform. in every condition, except experience. boyant Isao Aoki who broke the path for Zalatoris, despite his obvious talent, trem-
to Varanasi, their hometown. “We distancing norms are being flouted Even so, there are problems. For A wire-to-wire victory is very difficult here, Japanese golfers into the US by being runner up endous self-confidence bordering on youthful
got the booking done almost a here with impunity, especially at the instance, while everyone has masks as Rose has just found out. Spieth did it in 2015. to Jack Nicklaus in the 1980 US Open and then cockiness, and superb ball striking is a first-
month ago. We’re going for my entry gate where tickets are checked. on, many can be seen wearing them Different pressures came into play and winning the 1983 Hawaiian Open. He timer and is bound to feel immense pressure as
cousin’s wedding,” says Mishra. Standing under a tree, huddled below their noses, defeating their very answering questions, in detail to a probing flourished in the era of the world thinking of the holes fly past. Unless he can rise fast early,
While the brothers have booked with other passengers, Mohalal Tri- purpose. Given the hundreds travel- media such as how lucky he was in his Japan as Japan Inc. Sometimes cultural relatively, that pressure could undo him. Corey
their return tickets, they say they pati, 56, says, “It is scorching hot and ling every day, maintaining a distance scrambling round, does not help. differences stand in the way of Conners, or Corey Pines as he is sometimes
will decide to come back there is no shade. So we of 1 metre while going from one plat- Matsuyama is terrified of the media, Japanese (and those of other called in jest, has been performing really well
depending on how the The number are all standing under this form to the other is near impossible. particularly the Japanese media, nations whose language is not against the best players but has only one PGA
Covid situation plays of travellers at tree.” He is travelling with And there appears to be no effort on because he will now be hounded for English) to play more on the win in his back pocket. The English Rose may
out in Mumbai. “We’re New Delhi Railway his wife to Allahabad, UP. the part of the authorities to regulate the rest of his life. For the English- fabulously rich USPGA tour, but have already been in full bloom on the first day,
IT professionals, so can Station has gone Some others crowding the crowds or organise people in speaking media, he can put on a that might well change now with Thursday, and appears to be ready to shed sev-
work from Varanasi as up since the lull under that tree are head- queues while they board a train. mask of not understanding the Matsuyama being the first eral petals. Recent back injuries at age 40 take
well,” he says. seen in November- ed to Bihar. Many, meanwhile, are heading out question (although after so many Japanese to lead the Masters (by its toll and while the game is very much there,
Among the migrant December but it The scene at the New of the city because of family weddings years on the tour and five PGA four shots, at that!) going into the he only stayed where he is owing to several
community, across class- is still far less Delhi Railway Station is — April 20 to May 15 being an auspi- victories, he surely does) and using final round. Should he win, golf in lucky scrambles and that argues for his ouster.
es, there is concern and no different, where social cious period in the Hindu calendar. an interpreter as a dense filter. Excess media the already golf crazy nation of Japan will boom And that leaves the Texan Jordan Spieth
caution but no panic as the second distancing norms are severely com- So, these are largely planned travels. interaction, while popular with the followers of even more, and Matsuyama will be treated like and Xander Schauffele from Southern
wave of Covid-19 sweeps across the promised. Like in Mumbai, the At the Thane station in Maharas- the game, does take away from the need to a demi-god. He deserves it. California. The same age, the same toughness,
country. Unlike last year, there is no increased restrictions due to a steep htra, too, there are no crowds of mig- separate public thoughts with the need of the But victory is not yet his. Countless stories several PGA wins under the belt and several top
exodus from cities though many are rise in Covid-19 cases have not trig- rants looking to exit the city for home. moment to stay calm and detached. However, a can be told (Greg Norman, Rory McIlroy, ten finishes in Majors. One difference is that
choosing to return to their homes in gered any kind of exodus. The police personnel on duty and spectacular bogey-free round, which nobody Jordan Spieth) of those who crumbled under Spieth has won the Masters, and two other
Bihar, Uttar Pradesh, West Bengal and There is, however, crowding even those manning shops at platforms say else has achieved in the tournament, does the self-imposed pressure of an impending Majors. He has also self-destructed at the
Odisha for various reasons. though only passengers with confir- there has hardly been any increase in require some comment from Matsuyama. His win. Only laser sharp focus, to the exclusion of Masters in 2016 and then seemed to fall off the
“We are travelling for vacation. It med tickets are being allowed on to travellers in the last three days. appropriate response that every shot is differ- all else, can render one in the space to win. As perch for three years until the last six weeks. On
has nothing to do with the restrictions the platforms. The number of trav- The picture is vastly different from ent, and that he just hits the ball and then han- the gap narrows, which it might, and one looks the other hand, Xander is certainly the more
imposed by the state government. But ellers has increased since the lull last year. The approach this time see- dles the result without angst as the next shot is at the leaderboard (the equivalent of looking consistent with lesser-known weaknesses and
if the situation doesn’t improve in the seen in November-December but it ms to be: Wait, watch and brave it out. different, is perfect. What else is there to say? over your shoulder), the pressure mounts and is clearly hungry. It’s all a toss-up and, like all
next one month, we would not like to is still far less, just about a third of Whoever thinks of Matsuyama? Quiet, the hands tighten. Since he is playing in the last other denouements in this greatest of all stages,
come back here soon,” says a person what the railway station would wit- Abhijit Lele contributed to this report unassuming, just doing his job and minding his pairing, even the roars, however muted, owing we have to wait for the curtain to come down.