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NEW DELHI
~11.00
VOLUME XXIX NUMBER 46
SPECIALS
MONDAY Development Authority of India
(Irdai) is considering a proposal to
sure whether that has got
factored into the share
launched the public issue.
Had we delayed it, we would ‘WE’D LIKE TO
make insurance frauds a parameter price. We firmly believe have had no visibility as to
CONTINUE TO
BANKER’S TRUST for calculating credit scores in an attempt to
put a lid on the increase in such activity.
IN THE that once the market stabil-
ises our inherent strength
when the next window
M R KUMAR, would arrive. Markets, both HOLD A GOOD
The story behind the choice
of RBL Bank CEO
The proposal, which is a part of the rec-
ommendations made by a working group
WORKS and performance will get
recognised and the share
Chairperson,
LIC
globally and locally, had
become very tough. We
STAKE IN
IDBI BANK’
Does this smack of the regulator’s lack of formed by Irdai and the General Insurance price will move up. The decided to launch the issue
confidence in the bank’s board? Featuring of individuals’ previous PAGE 4
Council, suggests that insurance frauds float may appear small, but there is and I am really thankful to the poli-
TAMAL BANDYOPADHYAY writes 15 > should feature when the risk profiles of indi- frauds in risk profile to affect enough in terms of volume and cyholders and employees, who
viduals are evaluated and should be used to credit score once the delivery occurs on a regu- stepped up to contribute.
STATSGURU calculate their credit scores. lar basis, I think it will improve.
Employment conundrum 15 > A poor credit score can deprive a person Proposes amendment to Credit
of financial services such as loans and credit Information Companies (Regulation)
cards, and deter him from indulging in fraud. Act, 2005, Credit Information Companies WE FIRMLY BELIEVE THAT ONCE THE MARKET
While making a case for this proposal, the Regulations, 2006, and Credit STABILISES, OUR INHERENT STRENGTH AND
working group said a fraud attempt on an Information Companies Rules, 2006 PERFORMANCE WILL BE RECOGNISED Illustration:
Ajay Mohanty
insurance company can be replicated with
other financial institutions, too. Insurance companies may have to
The proposal is being considered by the share and update data on frauds with
insurance regulator, as such frauds have been credit information companies on a RIL MAY FOCUS ON CONSUMER CUSTOMERS WILL SEE LOWER
costing insurers dearly, with some estimates monthly basis
pegging their losses at over ~45,000 crore a BUSINESS IN AGM: ANALYSTS DISCOUNTS THIS SALES PERIOD
year. This has prompted insurers to jack up Credit information company may have The 45th annual general meeting (AGM) This end of season sale period, shoppers will find less stock on
premiums for customers to offset such losses, to collect information on fraudsters, of Reliance Industries (RIL) may be held discounts and lower discounts. Also, the
the working group has said. such as policy, premium, agent, among in the next few weeks with some duration of the sale period is expected to be
Scan to Open With more insurance penetration in the experts believing the company may lower. Retailers said more stock is moving
others
FREE Demat country, and the government’s push to insure revive plans of an oil-to-chemicals off their shelves at full price due to which
Account every citizen, fraudulent and suspicious activ- Rationale for move is that fear of poor (O2C) demerger, which was they are offering lower discounts and
ities have risen phenomenally, and need inter- credit score will deter people from shelved last year. shorter sales period. Sharleen D'Souza
vention, the group added. Turn to Page 6 > committing insurance frauds Viveat Susan Pinto writes 2> & Peerzada Abrar write 3>
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2 COMPANIES
>
NEW DELHI | MONDAY, 20 JUNE 2022
tough norms
confirmed that a bird hit led to the failure of Engine 1 on the
for non-public
suspected a bird hit one of the engines. As a precautionary
measure and as per SOP, the pilot shut down the affected
engine and decided to return to Patna,” the airline said. In a
similar incident, a Delhi-bound IndiGo was forced to return
Experts expect firm to make further announcements in green energy
networks
to Guwahati airport due to a bird hit on Sunday morning. VIVEAT SUSAN PINTO Last year, RIL, among the
The aircraft was at 1,600 feet when its left engine suffered a Mumbai, 19 June largest fossil-fuel companies in
bird hit. The pilot shut down the engine according to the the world, had set out to tran-
T
checklist and returned to Guwahati. Meanwhile a SpiceJet he 45th annual gen- sition into a green energy com-
flight, going to Jabalpur, returned to Delhi due to issues eral meeting (AGM) pany by announcing it would SURAJEET DAS GUPTA
with its cabin pressure. The problem was detected as the
aircraft was climbing to its cruise altitude.
of Reliance
Industries (RIL) may
invest ~75,000 crore ($9.62 bil-
lion) in the sector.
New Delhi, 19 June
DOT COMMITTEE
While the pilots suspected a bird hit, but they continued be held in the next few weeks “We are launching a new The Cellular Operators ON LICENCING
the climb as the sensors inside the aircraft, didn’t give any with some experts believing energy business with the aim Association of India (COAI)
indication of engine fire. It was after the cabin crew noticed the company may revive plans of bridging the green energy has demanded imposition of REFORMS TO
smoke billowing out from the engine that the pilots decided
to turn back.
of an oil-to-chemicals (O2C)
demerger, which was shelved
divide within India, and
globally,” RIL chairman and
tough conditions for allowing
enterprises to set up “captive
SUBMIT REPORT
Bird hits are fairly common as airports are situated in last year. managing director (MD) non-public networks”. BY MONTH-END
urban areas. The case is higher for India as most of the cities The company may also Mukesh Ambani had said at The move comes just a few The telecom department is
suffer from improper waste management and open drains spell out its future plans for the AGM, held virtually. days after the Cabinet, despite moving ahead in full stream
attracting stray birds. According to data from DGCA, there the retail and telecom busi- KEY ANNOUNCEMENTS IN This year may see the com- opposition from telcos, per- towards ushering the next
were 1,466 bird strike incidents and 29 animal strike inci-
dents in 2021 across Indian airports. The DGCA, in a 2018
nesses that operate as sep-
arate units, namely, Jio
LAST FIVE RIL AGMS pany press the accelerator
button as rival Adani extends
mitted enterprises to set up
private networks, with the
round of reforms in the
sector and a committee, set
circular, had said that the presence of wildlife on and in Platforms and Reliance Retail July 21, 2017 of JioFibre on commercial its partnership with department of telecom (DoT) up to make suggestions on
vicinity of an airport poses a “serious threat” to aircraft oper- Ventures, respectively. It Company announced launch basis TotalEnergies. Last week, the assigning them spectrum licencing reforms, is
ational safety. could also make further of Jio Phone with refundable two had agreed to invest $50 directly. In a letter to DoT sec- expected to submit its report
While most of the bird hits happen with the aircraft’s announcements in green July 15, 2020 billion over the next 10 years retary K Rajaraman on June to the Department by the
deposit Company said it had
body leading to minor damage, but if the engine is damaged energy, sector, experts said. in India to produce green 18, the COAI demanded non- month-end, a senior official
due to this, it may lead to smoke and fire as fuel will leak “RIL had decided against July 5, 2018 developed 5G solution; bet hydrogen. assignment of spectrum in the said. Even as hectic
out. In such cases pilots shut down the impacted engine proceeding with the demerger Company announced on new commerce As part of the plan, non-International Mobile preparations are on in the
and land at the closest airport. Modern passenger aircraft of its oil-to-chemicals business exchange of feature phone TotalEnergies would buy 25 Telecommunications (IMT) DoT for the upcoming
are built to operate even with a single engine. BS REPORTERS last year. But the company June 24, 2021 per cent in a new clean energy (5G) bands reserved for telcos. spectrum auctions, work on
with Jio Phone Company laid out new energy
could revive the plan this year, company promoted by the It also made a demand for the second set of reforms is
given the favourable environ- August 12, 2019 blueprint with ~75,000 cr Adani group called Adani New restricting the scope of such going on in parallel.
+ IN BRIEF ment that prevails currently,” Company announced launch investment Industries to jointly build the private networks for only
G Chokkalingam, founder and Source: Company/Analysts world’s biggest green machine-to-machine (M2M)
AIR INDIA REORGANISING ITSELF managing director (MD),
Equinomics Research and
hydrogen ecosystem.
"I certainly think that green
communications and plant
automation within the prem-
from the third party players”.
If they want to do so they must
UNDER TATA GROUP: AIRBUS CCO Advisory, said. “While crude
oil prices have corrected after
likely," he said.
JP Morgan had said in its
nue and nearly 45 per cent of
Ebitda, according to its finan-
energy or renewable energy
would be on the cards in terms
ises of a plant. COAI also wants
to ensure that they have no
obtain the spectrum through
the same process as TSPs.
AirIndiaisclearlyreorganisingitselfunderthe"ablestewardship"oftheTata the Fed rate hike last week, June 16 report that it saw the cial results for the fiscal ended of key announcements at the connection to public switched The move — if imple-
Groupandwantstoinvestinnewplanestoregaininternationalpassenger tight supplies remain in focus. company offering no specific March 31, 2022 (FY22). RIL AGM this year," telephone networks (PSTN), mented — could keep out any
marketshare,theChiefCommercialOfficerofAirbussaidonSunday. Second, the demand for timelines with regard to list- FY22 also saw RIL surpass Chokkalingam said. "This internet cloud platforms, other competitors like global
Speakingtoreportersonthesidelinesoftheannualgeneralmeetingofthe refined products is rising ing of the telecom and retail gross revenue of $100 billion could be in the areas of solar another private network or tech companies Google,
InternationalAirTransportAssociation(IATA),ChristianSchererwasasked globally,” he said. businesses. (~7.9 trillion) on the back of its and wind energy as well as multiple offices and buildings. Amazon or IT companies to
whetherAirIndiahadfinalisedtheA350aircraft Last week, JP Morgan had "While higher oil and gross performance in the O2C, tele- green hydrogen," he added. COAI has also said that the provide the services. It would
orderwithAirbus."Iwillnotcommentonthat," said that RIL remained among refining margins are a positive, com and retail segments. New Last week a report by the spectrum assigned to end restrict the collaboration for
theChiefCommercialOfficeroftheEuropean the best positioned to address we expected the global tech sell- energy presents a further Institute for Energy users should not result in cre- enterprises only to a few telcos.
Aerospacecompanysaid.Hisremarkscameafterit the need for refined products off to impact RIL’s consumer upside for growth in the future, Economics and Financial ation of third parties or inter- In the letter, the telcos have
wasreportedlastweekthattheTataGroup-owned across the world. “RIL remains valuations (for telecom and analysts said. Analysis (IEEFA) had said that mediaries operating on behalf also said that use cases meant
AirIndiahasdecidedtoprocureitsmaiden among the best positioned retail) negatively. With likely In a recent report, Morgan investment in the renewable of the enterprise. for the masses cannot be part
batchofwide-bodiedA350aircraftfrom refiners globally, given its abil- higher average revenue per user Stanley had indicated that energy sector in India had The reason they said is that of a captive network. They have
Airbusandthefirstplaneislikelytobedeliveredto ity to buy and process arbitrage (ARPU) and further ramp-up of RIL was on the path towards surged over 125 per cent year- creation of third parties or argued that there has been
theairlinebyMarch2023. PTI barrels, a diesel-heavy slate its retail footprint, combined touching $20 billion in Ebitda on-year to touch a record $14.5 intermediaries installing and demand from many stake-
and an export focus,” the bro- with renewable business, the by the end of 2022, led by billion in the fiscal ended operating the network for pri- holders that captive networks
kerage said in its report dated non-energy business valuations high refining margins, tele- March 31, 2022. vate networks would “result in could create use cases for finan-
Sequoia asks court Will be happy if fare June 16. should hold up going forward," com revenue per user rising, Reliance and Adani, the backdoor entry for third cial inclusion and agriculture
to dismiss lawsuit caps are increased, Deven Choksey, MD at bro-
kerage KR Choksey, said share-
the brokerage said.
RIL derives close to 60 per
global gas market tightening,
rising traction on digital com-
report said, were amongst the
key contributors to this spike.
parties to act as telecom serv-
ice providers (TSPs) without
sector connectivity.
But telcos have demanded
by its former counsel says Vinod Kannan holders were keenly awaiting cent of its revenue and nearly merce and superior petro- Adani had picked up SB obtaining the spectrum that since financial inclusion
Sequoia Capital India has asked Vistara will be happy if the announcements on the com- 50 per cent of its earnings chemicals spread. The com- Energy, a renewable energy through the same process by design intends to include
a local court to dismiss a lower and upper limits on pany’s plans to unlock value in before interest, tax, deprecia- pany closed FY22 with a company, in a deal worth $3.5 (auctions) as TSPs.” 100 per cent of the population,
defamation lawsuit filed by one airfares are increased but the retail and telecom. tion and amortization (Ebitda) consolidated Ebitda of ~1.25 billion, in October last year. Therefore, like the unified and agriculture sector would
of its former general counsels, best solution would be for the “Shareholders will want to from its O2C business. This trillion ($16 billion). Around the same time, licensees, private network need interconnection of 70 per
saying it was an attempt to curb airlines to have absolute know how the company is includes refining, petrochem- The brokerage also said Reliance New Energy Solar, a owners “must own all equip- cent of the population, such
its free speech rights and harm freedom to price, its chief looking to unlock value in busi- icals and fuel retail. Retail and that the company's bet on subsidiary of RIL, had ment installed for the purpose use cases cannot be under-
its interests, the venture capital executive officer Vinod Kannan nesses such as telecom and telecom, on the other hand, green energy initiatives was a acquired REC Solar Holdings of private networks and not taken by captive
firm’s court filing shows.REUTERS said on Sunday. PTI retail and by when this is account for 34 per cent of reve- key monitorable for the future. for $771 million. obtain them on lease/rental networks.
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NEW DELHI | MONDAY, 20 JUNE 2022 COMPANIES 3
L
ocated in Pochampalli town
in the Krishnagiri district of In this end-of-season sale period, sentiment and sales pick up
Tamil Nadu and surrounded shoppers will find lesser items on dis-
by shoe factories, temples, bakery count. Moreover, there will be lower n Pepe Jeans curtails sale period
shops, coconut trees, and dusty discounts and duration of the sale from 7-8 weeks to 5-6 weeks
roads is the newly built Ola period will also be shorter.
Futurefactory. After coming out of the third
n V-Mart retail pulls back its
It takes over three hours of drive wave, retailers witnessed strong sales sale season by 15 days
and more than 130 km from the since March as people started shop- n End of Season Sale: Over
technology (tech) hub of Bengaluru ping at full price.
5 million shoppers buy 21 million
to reach the world’s largest wom- Also, during the pandemic, retail-
en-only factory. It is also being ers resorted to buying lower stocks Myntra products
expanded to become the largest Ola S1 Pro product in the market. vehicles. Customers have also as footfalls were impacted.
two-wheeler factory in the world We are working on a few other pro- reported frustration related to Retailers said that more stock is brand, which will start its sale period founder and managing director
with an annual production capac- totypes,” he says. delays in deliveries and a few tech- moving off their shelves at full price. on June 23, plans to offer a maximum (MD), said.
ity of 10 million units, contributing Aggarwal recently stepped back nical glitches. The firm has said it Hence, they are offering lower dis- of 50 per cent discount. The brand began its sale season
to one of every seven two-wheelers from day-to-day operations to is ramping up its core R&D in counts and shorter sale periods. “Compared to pre-pandemic, we in the south on June 10 and will start
sold in the world. focus more on engineering func- advanced cell chemistry and man- However, retailers are in a wait- have seen sales go up by 26 per cent it in north India on June 23.
Inside, the hangar-like building tions, team building, and products, ufacturing, as well as other battery and-watch mode to see if this will and we expect double-digit sales to While retailers expect a rush at
reverberates with grinding metallic apart from focusing on long-term tech and new energy systems. It is cause the overall sales to move up for continue,” Kapoor said. the offline stores, the impact was
sounds as robots work alongside strategic projects, such as two- also working on fast-charging bat- the year as they are still in the first Retail chain Lifestyle will also already seen online.
humans, with songs like Blinding wheelers, cars, and innovations in tery cell tech and aims to bring it quarter. begin its sale on June 23 and Ecommerce fashion portal
Lights by The Weeknd playing in quick commerce and international to the market. It will be setting up Lifestyle and apparel retailers typ- expects a strong response. It has Myntra also witnessed strong move-
the background. The expansion. The other strategic pro- a battery cell manufacturing plant ically see 40-45 per cent of their sales seen strong sales since March and ment during its end-of-reason
Futurefactory, spread over 500 jects include cell research and in India with a capacity of up to 50 from the spring-summer collection has witnessed 10-11 per cent like-to- (EORS) sale.
acres, or about 378 football fields, development (R&D), building the THE REASON THAT gigawatt hour. that starts from mid-February-March like sales growth. However, it would Walmart-owned Myntra saw
is a fully automated plant. The Pune tech centre, and In India, Ola is now in direct and then goes on up to July-August. only have a month of sale. It will not about 21 million products being pur-
facility, built on Industry 4.0 prin- Futurefoundry UK. “Over the next
INDIA IS GOING competition with electric two- Festive sales — which are typical- reduce discounts and keep it at up chased by 5 million shoppers across
ciples, has more than 3,000 robots. two years, you will see many two- THROUGH THIS EV WAVE IS wheeler makers like Ather Energy, ly in the autumn-winter period — to 50 per cent. the country during the 16th edition
SoftBank-backed Ola said it wheeler roll-outs. We are also THE CONSUMERS... WOULD Hero Electric, Bajaj, and TVS Motor account for 40 per cent of a retailer’s “Many retailers resorted to cur- of its biannual flagship event.
uses proprietary artificial intelli- building an (electric) car,” says Company. sales. The pandemic has taught tailed trading during the pandemic. “In our endeavour to democratise
gence for optimal performance. Aggarwal, who also gives a sneak YOU BUY A PETROL SCOOTER Ola Electric said it has more retailers to become more agile and And, the need for fashion products fashion using technology, this edi-
One can see many robots moving preview of a red electric car. AGAIN? NO. OUR VISION IS TO than 50,000 scooters on road they have brought in the concept of is increasing now as outdoor activi- tion of (EORS) has been able to
autonomously, carrying loads from It is likely to be a large sedan today, with customers having rid- just-in-time inventory. Here, they ties have picked up. Due to this, delight 5 million people, the highest
one location to another on the fac- and not a compact hatchback for
REALLY PUT INDIA ONTO THE den 45 million kilometres (km). work closely with manufacturers and inventories are a little tight,” ever to shop during the sale season
tory floor. There are also robots intra-city use. GLOBAL MAP OF At the customer event in Tamil raw material is converted into appar- Devarajan Iyer, CEO, Lifestyle, said. so far,” said Nandita Sinha, CEO,
working on key manufacturing “We are also building the core ELECTRIFICATION” Nadu, Ola also launched the el only when demand emerges,” He expects buoyancy during the Myntra.
process lines like painting and tech behind that - which is the cell. MoveOS 2 software update for all Kumar Rajagopalan, chief sale period and may She added, “Myntra Live’s debut
welding, as well as battery and All of this is being built in India. I BHAVISH AGGARWAL its customers at the Ola executive officer (CEO) at extend it only if stocks at scale with the EORS was a major
motor assembly. “This factory was believe that by the end of 2025, Founder and CEO, Ola Futurefactory. With this, over Retailers Association of Brands are last. pull for brands and shoppers.”
built in seven months in the thick India will not be selling any petrol 50,000 Ola S1 Pro customers across India, said. hopeful for a Major Brands, which EORS 16 also helped in augment-
of the Covid-19 pandemic,” says two-wheelers,” he says. adopted an electric future,” says the country will get an over-the-air Also, brands have put better sales has names such as ing the income of 21,000 kirana part-
Bhavish Aggarwal, founder and Aggarwal says his mission is to Aggarwal. “Will you buy a petrol update. The firm says this will better supply chains in season compared Aldo, Charles & Keith ners by about 1.4 times over their
chief executive officer, Ola, help India get on the world stage scooter again? No. Our vision is to make the scooter a feature-rich place and have warehouses to the last two and Bath & Body Works, business as usual earnings.
addressing 3,000 customers visit- of the electric revolution. There are put India on the global map of elec- two-wheeler in the country. With in central locations. years, with will run its sale for 3-4 Myntra also created 27,500 third-
ing the factory. many top companies innovating in trification,” he adds. the software update, the Ola S1 Pro “We have cut down our people starting weeks and its discount party employment opportunities
Currently, the factory produces this space like Elon Musk’s Tesla However, Aggarwal is sharing will offer enhanced accessibility. sale season by two weeks. to step out as structure is different through its partners to cater to the
1,000 electric scooters per day. and a slew of US and Chinese firms. these plans at a time when the The firm says the MoveOS 2 update It will only be for 5-6 weeks offices have across brands. sales demand.
There are over 2,000 women Most of these top companies, company has been in the news for also enables bug fixes that were compared to the usual 7-8 opened On an average, its It said 8 million items were
employees at the factory. These including Tesla and NIO Inc., are all the wrong reasons. Recently previously found in isolated weeks as full price sell- discounts would be up already delivered to customers
women are trained and employed focusing on premium and luxury safety concerns were heightened instances, such as range drop and throughs are higher than the pre- to 40 per cent, Tushar Ved, president before the end of the event.
to run the entire production cycle market products, according to when an Ola electric scooter battery discharge. pandemic period,” said Manish at Major Brands, said. The retailer Beauty and personal care regis-
– from battery to assembly. experts. “The reason India is going recently burst into flames in Pune. The software update will enable Kapoor, CEO at Pepe Jeans India. has already started selling its goods tered a 5X growth in demand over
At full capacity, Futurefactory through this electric mobility wave Many customers have been com- riders to access their scooters He added the inventory, which at a discount during the weekend. business as usual during EORS 16,
will have a workforce of 10,000 are the consumers. They have plaining about the scooters, lead- remotely using the Ola Electric will go up on sale, will be 30-35 per V-Mart will also reduce the sale further strengthening Myntra’s posi-
women. “Right now, we have the wholeheartedly rejected petrol and ing to greater scrutiny of electric Companion application (app). cent lower this time. Also, the denim period by 15 days, Lalit Agarwal, tion in this category.
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4 ECONOMY & PUBLIC AFFAIRS
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NEW DELHI | MONDAY, 20 JUNE 2022 1
IN BRIEF
Goyal: Fully protected interests As fuel shortage continues, Depts turning
of farmers, fishermen at WTO
to GatiShakti
India has completely protected the
interests of farmers and fishermen in
the recently concluded ministerial
conference of the World Trade
Organization (WTO) in Geneva,
pvt players seek govt help to cut infra
Commerce and Industry Minister SHINE JACOB
project time
Piyush Goyal said on Sunday. Goyal, Chennai, 19 June
who led the Indian delegation for the
D
WTO talks, said the decisions taken in espite the government bringing in
the conference would further private players under the univer-
strengthen the role of the multi-lateral body in promoting global sal service obligation last week
trade and India championed the cause of the developing and (USO), there was a dry out of fuel outlets SHREYA NANDI
under-developed countries. Members of the Geneva-based WTO across the country on Sunday. While New Delhi, 19 June
on June 17 secured a 'Geneva Package' which included agreements Madhya Pradesh, Rajasthan and
on curbing harmful fishing subsidies and temporary patent waiver Karnataka were mainly affected last Government departments have started making use of Prime
for production of Covid-19 vaccines. PTI week, reports of fuel shortage are now Minister Narendra Modi’s Gati Shakti-led digital technology
coming from Tamil Nadu, Chattisgarh, initiative to reduce the execution time for infrastructure projects
Odisha, Kashmir and other states too. by about three-four months.
Opt for lowest air fare, book 21 This comes as Industry body
Federation of Indian Petroleum Industry
Officials from the ministry of road transport and highways
and National Highways Authority of India (NHAI) have been
days prior travel: Govt to staff (FIPI), which represents private fuel
retailers such ad Jio-bp and Nayara
attending workshops in Gujarat-based Bhaskaracharya National
Institute for Space Applications and Geo-informatics (BISAG-
The Finance Ministry has asked government employees to opt for Energy, approached the government stat- N) to draft the alignment of five expressways digitally, a senior
‘cheapest fare available’ on their entitled travel class and book air ing that under-recoveries will limit the government official said.
tickets at least three weeks prior to their date of travel for tours and ability of private players to make further Once alignments are finalised using digital technology, the
LTC, as it looks to cut down on unnecessary expenditure. The investment and expand. FIPI had said project will go into the detailed proj-
Ministry further said that employees should book only one ticket for that companies are suffering a loss of ~20- HIT BY FUEL CRISIS ect report (DPR) stage. DPR is an OFFICIALS FROM NHAI
each leg of intended travel, make bookings even if approval of the 25 a litre on diesel and ~14-18 a litre on elaborate plan of a project, entailing ARE ATTENDING
tour programme is under process and also avoid “unnecessary petrol at present due to the non-revision
Fuel prices remained ~20-25 ~14-18 ~1.89 trillion: its planning, design, risks and WORKSHOPS TO DRAFT
cancellations”. Government employees are currently required to of prices.
unchanged since May 21 a litre: a litre: Likely under recovery resources required as well as the ges- THE ALIGNMENT OF
purchase air tickets only from three authorised travel agents— “Private sector players have com- when Finance Minister Loss that Loss that that state-run OMCs tation period. Development of proj- FIVE EXPRESSWAYS
Balmer Lawrie & Co, Ashok Travel & Tours and IRCTC. PTI pletely stopped supply. Public sector out- Nirmala Sitharaman companies companies may suffer on petrol, ect alignment at the pre-feasibility DIGITALLY. WITH THIS,
lets are seeing a shortage of supply from announced a cut in excise are are diesel, and LPG, if stage of an infrastructure project is TIME TAKEN FOR A
the companies. This has led to the crisis duty on petrol by ~8 a litre suffering suffering prices remain a critical step towards the prepara- PROJECT CAN BE CUT
India gives e-visas to over 100 in almost all the states now,” said Ashok
Badhwar of the Federation of All India
and diesel by ~6 a litre on diesel on petrol unchanged tion of a DPR.
To develop project alignment
BY AT LEAST 100 DAYS
RBI failed to study realities to get more bonuses. We were the first
to introduce unit-linked insurance
many banks we can reach out to and
how much training we can provide What will the share of the non-par
programmes lined up for this
business. That being the case, we will
How would you reflect back on your
term as chairperson?
Asserting that Kerala is not in a “debt trap”, Finance Minister K N products (ULIPs) in the Indian bank employees in terms of the pro- business be in your portfolio? be talking to the government to It has been a roller coaster ride. I
Balagopal on Sunday said a RBI article that expressed concerns market. But depending on the ducts we are launching. We have 14 On an APE basis, non-par is about ensure that we continue to have some joined in March 2019, and by the time
over the state’s financial health was done without studying the demand, we have been rotating our major banks, including IDBI Bank, 13 7 per cent now. We would like to raise stake. Of course, divestment of I settled in, the Covid-19 outbreak
ground realities. Critical of the Reserve of India (RBI) article as well products and bringing in new ones regional rural banks, and 45 cooper- that to 12-15 per cent in three-four government stake is for the govern- happened. The announcement of the
as the overall approach of the central government, Balagopal, also whenever required. ative banks. Also, we have 71 corporate years. ment to speak about. IPO also came around the same time.
a senior leader of the state’s ruling Left front, said Kerala is facing On the bancassurance side, we agents, 35 insurance marketing I will be looking back with a lot of sat-
financial difficulties like any other Indian state and those can be have around 62,000 outlets. We have agents, and 63 brokers. In all, we have How soon do you expect the change People were expecting better isfaction at what we aspired to do and
managed only with collective efforts of the Centre and states. PTI to reinforce our focus on this channel. around 62,000 outlets and tapping in product mix to positively impact dividends and felt disappointed achieved.
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NEW DELHI | MONDAY, 20 JUNE 2022 5
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CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED
Corporate Office: 1st Floor, 'Dare House', No.2, N.S.C. Bose Road, Chennai-600 001
Branch Office: Branch Office: 1st & 2nd Floor, Plot No.6, Main Pusa Road, Karol Bagh,
6 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | MONDAY, 20 JUNE 2022 1
New Delhi - 110 005.
No rollback of Agnipath:
MoD downplays protests
Chiefs of tri-services say scheme aimed at bringing down age profile of forces
AJAI SHUKLA
New Delhi, 19 June
D
ownplaying the violent protests
against the Agnipath recruitment
scheme that continue to rock Uttar
Pradesh, Telangana and Bihar, the
Ministry of Defence (MoD) on Sunday
fielded the military’s top manpower
planners in a press conference to send out
the message: “Agnipath is here to stay.”
Meanwhile, as many as 35
WhatsApp groups that were allegedly Railway employees repair the damaged Patna-Gaya railway line on Sunday PHOTO: PTI
spreading fake news about the
Agnipath military recruitment scheme
were on Sunday banned by the govern-
RECRUITMENT SCHEDULE
ment, officials said. NAVY IAF ARMY
Lieutenant General Anil Puri, | Guidelines to be | Registration | Notifications on July 1
additional secretary in the Department of issued by June 25 process to and rallies in August,
Military Affairs (DMA), who was at the begin from June 24 September, and October
forefront of conceiving and structuring the | First batch of recruits
Agnipath Yojana and is now the military’s will join training | Online examination | First batch will join training in
frontman in defending the scheme, told programme on INS process for phase one the first and second week of
the press conference in Delhi: “The Chilka in Odisha by from July 24 December
Agnipath scheme will not be rolled back. November 21 | Training for first | The second lot of recruits will
Why should it be rolled back?" | Navy is recruiting both batch of recruits by join their training around
Conveying the impression of a strong men and women December 30 February 23
government, Puri said the concessions that
the MoD had made in the Agnipath
scheme were not forced by protests and lage” in the country. With the 2011 census cent quota in MoD jobs, which include the
arson, but because they were already in placing the country’s village count at Coast Guard, defence civilian posts, and
the works. 640,930, this requires each rally to carry all 16 defence public sector undertakings.
The generals spelt out a recruitment out recruitment from an average of 7,722 This reservation would be over and above
schedule that made it clear it was too late villages. This is clearly an exaggeration. the existing job reservations for ex-ser-
to backtrack on this pathbreaking scheme. The Air Force too said it would enrol vicemen.
Lieutenant General C Bansi Ponnappa, the first batch of Agniveers by December In addition, the government hastily
the Army’s Adjutant General and top man- and training would begin before the New announced a 10 per cent quota for retired
power planner, said recruitment to the Year. The Navy, however, will be the first Agniveers in the Central Armed Police
Army would start in the first half of August service to get off the blocks. The first batch Forces (CAPFs), which include the Central
and the first Agniveers will come in by the of Agniveers would reach the Chilka Lake Reserve Police Force, the Border Security
first week of December, followed by a sec- in Odisha for training by November 21. Force, the Central Industrial Security
ond lot in February. The unanticipated protests have forced Force, the Indo-Tibetan Border Police, the
Ponappa said the Army would hold 83 the government to announce several ad Seema Suraksha Bal and the Assam Rifles,
recruitment rallies and touch “every vil- hoc concessions. These include a 10 per the last of which comes under the MoD.
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NEW DELHI | MONDAY, 20 JUNE 2022 POLITICS & PUBLIC AFFAIRS 7
“I WELCOME THE DECISION ON THE #AGNIPATH SCHEME. “THE PM HAS FORCED THE YOUTH TO WALK ON THE “HAVING SOLDIERS ON CONTRACT IS DANGEROUS,
THE WAY THE OPPOSITION IS TRYING TO TAKE THIS ISSUE IN ‘AGNIPATH’ OF UNEMPLOYMENT. IN EIGHT YEARS, AND PLAYING WITH THE AMBITIONS AND LIVES OF
A DIFFERENT DIRECTION, IS NOT APPROPRIATE. IT WILL BE 160 MILLION JOBS WERE TO BE GIVEN. BUT THE YOUTH YOUTH IS WRONG. THERE IS NO USE OF SPEAKING
AN OPPORTUNITY FOR THE YOUTH ACROSS THE NATION” ONLY GOT KNOWLEDGE ON FRYING PAKORAS” ABOUT LORD RAM IF THE YOUTH DO NOT HAVE JOBS”
JAIRAM THAKUR, Himachal Pradesh chief minister RAHUL GANDHI, Congress leader UDDHAV THACKERAY, Maharashtra chief minister
> .
T
he 2004 Lok Sabha election Harkishan Singh Surjeet of 2022 that is the BJD’s primary threat in Trinamool Congress (TMC). by student mafia. Students used to 38 per cent of the vote against the some unpleasant decisions and pro-
saw the Congress get more (and, eventually, 2024)? Odisha but the Congress. “We may It is more than a coincidence take examinations with a knife thrust Samajwadi Party’s 44 per cent. The pel some others. After the BJP’s 2009
seats than expected, but not The moves she has made to carry the formal tag of being the that May 2022 saw the birth of a into the desk. Samajwadi Party won the seat. defeat, when then vice-president
enough to form a government on bring the opposition together on main opposition party in the state new organisation not directly asso- Rajnath had none of this. He Rajnath has never Yashwant Sinha
its own. It needed allies and, in the issue of a common candidate but people are yet to accept us in ciated with the TMC. The website announced that copying would acknowledged as cor- The space for Rajnath in resigned from all par-
order to keep the BJP out, the Left for the election of the president that role. In popular perception, says that “India Wants Mamata Di henceforth be a non-bailable offence: rect the charge of aca- UP politics has shrunk ty posts, Singh had to
offered its support, based on com- of India suggest that the outreach our role as the main opposition (IWM) is a community, believing in Which meant the onus of proving one- demics that he after Yogi Adityanath take the unprecedent-
mitment to a Common Minimum to find a new president is out- has been diluted because the rul- the ideology of Hon’ble CM of West self innocent was on the accused. behaved as a fascist in appeared on the scene. ed step of issuing
Programme. As the Samajwadi Par- weighed by the need to create ing BJD is often seen as supporting Bengal, Mamata Banerjee and All Young people aged 14 and 15 were sent imposing the anti- Although Rajnath has orders that those
ty (SP) was an ally of the Left in UP, acceptability for an opposition us on various issues. That creates India Trinamool Congress, the par- to jail on charges of copying in exam- copying law. He has always reacted angrily going public with
the SP rode piggyback, believing it candidate for the position of suspicion in the minds of people,” ty that she leads”. It is steered by inations. The immediate fallout was always believed it was at being described as a complaints about the
too was going to be part of the gov- prime minister of India, 2024. BJP leader Satyabrata Panda told professionals and was launched by that the pass percentage in the UP his achievement that ‘Thakur’ leader and leadership would be
ernment. It thought wrong. While There is hardly any doubt that local newspapers. MP Derek O’Brien on May 14. The High School Board examination for he was able to bring strongly contests such a dealt with sternly. As
the CPI(M)’s Harkishan Singh Surj- internal fractures in the opposition Similar is the case with the TRS. Twitter and Facebook accounts of Class X in 1991 was 58.03. In 1992, after order into troubled characterisation, the a BJP leader put it, it
eet, the man who helped build ma- preclude a common strategy on the In the Telangana Assembly elec- IWM have crossed 10,000 followers the anti-copying law was put in place, campuses, although reality has to be was a clash between
ny secular alliances, was invited to part of the parties opposed to the tions in 2014, the Congress won 21 and have been active with posts it was 14.7. Similarly, the Intermediate the Kothari acknowledged: there “the coterie advising
the first strategy meeting to be held BJP and also opposed to the seats out of the 119 seats it contested, that praise the West Bengal (Class 12) results showed 80.54 per Commission on high- is no room at the top L K Advani and the
+ at Sonia Gandhi’s residence, the SP Congress. This is why the Biju with a vote share of 25.02 per cent. government and Banerjee. cent passing in 1991. In 1992, the pass er education says that in the UP BJP any more rest of the party, with
was rather pointedly kept out. Janata Dal (BJD), the YSR Congress, But in the 2018 Assembly elec- There is hardly any doubt that percentage dipped to 30.38. some amount of poli- for another Rajput Rajnath Singh trying
Conscious that the alliance the Aam Aadmi Party (AAP), and tion, the Congress contested only with the support of the BJD and Both sides had their arguments. tics and disorder on his best to retain some
would not take off if the SP was not the Telangana Rashtra Samithi 100 seats, including friendly con- other “non-aligned” parties, the Rajnath was implacable that only dra- campuses was inevitable, even desir- measure of authority”. When the Goa
included, Surjeet asked SP stalwart (TRS) stayed away from the tests in four, as it had forged an BJP will have no difficulty in getting conian measures could prevent copy- able. To Rajnath must go the dubious meeting of the party saw Narendra
Amar Singh to accompany him un- Banerjee-sponsored meeting for a alliance with the Telugu Desam its presidential candidate to win ing in examinations. Indeed, he told distinction of intermediate and high Modi publicly throw his hat into the
invited to the meeting. When Singh consensus on the common presi- Party, CPI, and Telangana Jana the election. reporters that some people in his fam- school-level policing of examinations. ring for the top job, it fell to Rajnath
reached there, he found a stony si- dential candidate. Samithi to form the Maha Kootami Banerjee is not unaware of this. ily were involved in this exercise “as The limited point is that once to make the decision palatable to the
lence greeting his presence. He felt Take the example of the recent or the People’s Front. But her sights are not on the July a business” and “when I came to know Rajnath makes up his mind, there are party, especially Advani, who
clearly unwelcome and excluded. Brajrajnagar Assembly by election, Yet, it won 19 seats and its vote election: They are on another elec- of this, I stopped talking to them, I few who can change it. On the other attacked him in a public letter. As
Later, the SP, Congress, the which the BJD won by a massive share went up to 28.4 per cent. tion that will take place in 2024. found the practice so reprehensible”. hand, was the Agnipath scheme a sig- before, on the Agnipath issue, he’s
Left parties, and others were to margin of 65,000 votes. For the Aam Aadmi Party, with Whoever the opposition decides But children being hauled to jail? nature Rajnath Singh scheme in the standing up to be counted as a lieu-
create the United Progressive But look at the party that came an election looming in Delhi and on, Banerjee will still be a winner His other moves as education minister first place? tenant of Prime Minister Narendra
Alliance (UPA), which went on to second — not the BJP, which end- with the Congress the primary even if the opposition loses. — removing “distortions” in history The space for Rajnath in Uttar Modi, implacable in his loyalty.
STORY IN NUMBERS
Missing in action Akhilesh’s relations with Khan, a
cherished aide of his father,
Mulayam Singh Yadav, soured
during the period when Khan and
RADHIKA RAMASESHAN his family were incarcerated on a
LOOKING BACK ON PREZ KOVIND’S LEGACY slew of charges. Only when Akhi-
Haji Fazlur Rehman, Saharanpur lesh’s indifference towards Khan
Ram Nath Kovind will step MP elected from the Bahujan — it was alleged that he did not
down as India’s 14th President BSE PSU Samaj Party (BSP), decided that visit him even once in jail — was
things had come to a head in his commented upon and discussed
in July this year. He was elected
town when on June 12 the in the public domain, he said.
by a huge margin on June 25, administration rolled in Once Khan secured bail after
2017. In his capacity as India’s bulldozers and razed the former Congressman Sibal fought
First Citizen, he owns the properties — deemed as “illegal” his case in the apex court, Akhiles-
shares of several public sector 8,566.5 8,155.2
— belonging to Muzammil and h visited the ailing leader at a Delhi
enterprises held by the Abdul Wakeer. Muzammil and hospital. He made more amends
government. Wakeer have been accused of by sending Sibal to the Upper
How have these companies spearheading the June 10 protests House and giving a ticket to Asim
performed during his tenure? outside a Saharanpur mosque, Raja, a long-term Khan associate,
The President has no role in BEST- AND WORST-PERFORMING PSUs Price in ~ after the Friday prayers, against to contest the forthcoming
former Bharatiya Janata Party There was a muted response from the Opposition, even as Rampur Lok Sabha by-poll. It was
running these concerns. He is
BEST Industry Jul 25, 2017 Jun 15, 2022 Change % (BJP) spokesperson Nupur authorities in UP bulldozed Muslim houses, following protests speculated that Khan wanted a
only the titular owner of the Sharma’s remarks on the Prophet. against Nupur Sharma’s remarks ticket for his wife but changed his
shares of these companies. No l T N Telecom Cables - Telephone 1.77 7.6 331.6 Rehman reached out to the mind once Akhilesh chose RLD
liability of any kind attaches to l FACT Fertilisers 41.55 112.5 170.6 local Samajwadi Party (SP), Rash- pressing matters like inflation.” such punishments. That was it. chief Chaudhary Jayant Singh
him. triya Lok Dal (RLD), and Congress The SP, with 111 legislators in a Rajendra Chaudhary, SP over his wife, Dimple Yadav, for a
l Madras Fertilizers Fertilisers 22.15 44.9 102.7
But the price movement of members to forge a coalition of House of 403, is the largest entity spokesperson and member of the place in the Rajya Sabha.
the companies’ shares does l HPCL Refineries 122.6 214.85 75.2 the Opposition and pressure the in the Opposition. Yet, it took legislative council, said: “There is “That’s another proof of our
affect his portfolio. l Indraprastha Gas Gas distribution 225.42 355.2 57.6 administration to call off the incessant questioning on social no need (for the SP) to stage an commitment towards the
Take a look at the portfolio crackdown on Muslims. It was media to force a tweet from agitation. We will work within the minorities because the RLD-SP
WORST Rehman’s own initiative because Akhilesh Yadav, SP president and framework of the Constitution. alliance is important to keep the
of the President of India and
l PNB Banks - Public sector 162.95 29.9 -81.7 the BSP president, Mayawati, did leader of the Opposition, conde- We are committed to ensuring Jat-Muslim combine intact in
the legacy he leaves his not ask him for any kind of action. mning the demolition of the justice for the minorities.” western UP,” claimed Lathar.
successor who will be elected l Central Bank Banks - Public sector 91.5 17.0 -81.4
Her reaction was confined to a house of Afreen Fatima, former Sanjay Lathar, SP’s former That the SP is keen not to
on July 18 in an elaborate l Union Bank (I) Banks - Public sector 161.2 36.0 -77.7 tweet in which she criticised the JNU student and Opposition leader in overestimate its “pro-Muslim”
election, for which the process Uttar Pradesh government for activist and researcher the Legislative antecedents was articulated by
l Pun. & Sind Bank Banks - Public sector 55.9 14.2 -74.6
is currently underway. creating “an atmosphere of fear in Allahabad, by the Council, said: “We will another spokesperson, Sunil
ADITI PHADNIS l Bank of India Banks - Public sector 164.05 44.4 -73.0 and terror” and demanded the Prayagraj fight legal battles. Singh Yadav. “It’s not a question of
arrest of Sharma. “I felt enough Development That’s why we gave a only taking up the cudgels for
TOP 10 PSUs *T N Telecom: Tamil Nadu Telecommunications; FACT: Fertilisers And Chemicals Travancore
was enough because innocent
young persons were targeted in
Authority on June 11.
Afreen’s father Javed
Rajya Sabha berth to
(Kapil) Sibal.” As
Muslims. We are there to defend
whichever community is hara-
CURRENT PREVIOUS the most horrible ways by police. Mohammed is a leader “evidence” of the SP’s ssed and victimised. In Unnao,
Company Industry Jun 15, 2022 Company Industry Jul 25, 2017 If the Opposition doesn't step up, of the Welfare Party of “responsibility” my home town, even Hindu
n SBI Banks - Public sector 4,02,946 n ONGC Oil exploration / Allied services 2,10,016
into anything concrete and that
reflects the quandary within UP’s
Opposition on the ongoing
the Yogi Adityanath
government’s radar
since they
SCAN candidates nominated
for the impending
spoke in a similar vein. Sunil
Rohtas, the RLD spokesperson,
n ONGC Oil Exploration / Allied services 1,90,465 n IOCL Refineries 1,81,732 UTTAR PRADESH Legislative Council said: “Our focus is presently on
upheaval. participated in the elections, two are fighting and winning the
n Power Grid Power generation and supply 1,54,995 n Coal India Mining / Minerals 1,60,493 That the Opposition is tiptoe- agitation against the Muslims: Jasmer Rampur and Azamgarh (Lok
n NTPC Power generation and supply 1,43,705 n NTPC Power generation and supply 1,35,226 ing around the post-protest deve- Citizenship Amendment Act in Ansari, former MLA from Sabha) by-polls.”
lopments was evident in what Ma- 2019, although the government Laharpur, and Shahnawaz Khan, Aradhana Mishra, one of the
n Coal India Mining / Minerals 1,17,153 n Power Grid Power generation and supply 1,13,212 irajuddin Ahmed, RLD’s general claimed that portions of the son of Sarfaraz Khan, a loyalist of two Congress legislators, said:
n SBI Life Life insurance 1,12,554 n BPCL Refineries 1,01,239 secretary, said: “We need a more flattened property were “illegally” SP veteran from Rampur, Azam “The Congress’s stand is clear. In
aggressive Opposition but the SP raised and had to be torn down Khan. Like other parties, the SP such cases (of protests), legal
n IOCL Refineries 1,02,803 n GAIL (India) Gas distribution 63,111
has to take the lead. But first of all, and the motive, therefore, was not believed its obligation towards procedures must come into play.
n BPCL Refineries 68,266 n HPCL Refineries 56,846 the courts have to take cognizance “political vendetta”. Muslims, even in particularly If we, the lawmakers, do not
n SBI Card Finance - others 68,197 n Bharat Electronics Electronics - others 38,518 of objectionable statements. Akhilesh stated that “our harsh circumstances, was repose our faith in the
Protests of the kind we witnessed culture, religion, law, and the confined to disbursing patronage. Constitution, how can we expect
Data Source: Capitaline are not necessary. There are other Constitution” do not sanction To put matters in perspective, people to?”
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8 WORLD
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NEW DELHI | MONDAY, 20 JUNE 2022
Fed’s Waller backs Sri Lanka troops open NEND OF ‘UNIPOLAR WORLD’N
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OPINION 9
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O
fficials of the World Trade Organization (WTO) and those from India, prime minister promised to feed the world from
led by Union Commerce Minister Piyush Goyal, have hailed the break- Indian foodgrain stocks. And the steel industry
through compromise that appears to have breathed life into the otherwise pointed to the confusing impulse to both target
moribund governance structure of global trade. In their first set of major exports through subsidies and then impose an
export tax.
agreements for seven years, the countries at the WTO (they operate on the basis of
Investors into India also detect contradictory
consensus, meaning that any member-country can veto a deal) in Geneva came to impulses. On the one hand, there is no doubt that
a decision on issues as varied as patent protections for vaccines, fishing subsidies, several of the PLI schemes, such as those for mobile
and digital trade. India had to significantly soften its objections on several of these handsets and for chipset manufacturing, were
issues, but nevertheless claimed victory in post-agreement press briefings. designed after close consultations with possible
This notion of “victory”, however, needs to be understood in context. India’s investors from the global private sector. On the
demand for weaker intellectual property protection for pandemic-related medical other hand, investors also insist that much of the
India’s trade
requirements, for example — which it, alongside South Africa, has been pushing broader arrogance in New Delhi about the size of
for over a year — may have come too late to make an appreciable difference to con- the Indian domestic market and therefore its mag-
netic attraction for global investment has not abat-
trolling the pandemic. Nor does it cover therapeutics and testing, but only the rel-
ed. They insist this false assumption lures policy-
evant vaccines. Given that most manufacturers of vaccines now believe there is a makers into a fatal overconfidence.
contradictions
supply glut, it is hard to see this agreement being translated into material gains. The WTO experience, where India’s overblown
The question of the fisheries agreement is more complex. This was identified by rhetoric and its quieter willingness to compromise
the WTO’s new leadership as the most likely location for a new agreement that on certain key issues appear to contradict each other,
would break the WTO’s decades-long inability to expand into new areas. is actually a fair representation of the overall inco-
The hope was that inefficient national subsidies, which lead to overfishing herence in India’s trade policy. It is vital for the gov-
outside countries’ exclusive economic zones, could be controlled, thereby leading WTO experience highlights India’s less-than-coherent ernment therefore to do three things.
First, government officials should ratchet down
to more sustainable global fishing stocks. India essentially wanted these subsidies
in richer countries, including China, to be controlled while preserving the right to
approach towards trade their tendency to describe trade restrictions as a
“win” for India or for “aatmanirbharta”. Even if trade
increase subsidies for poorer countries over the next 25 years. In the end, the
A
t the World Trade Organization (WTO) head- had free trade agreements —Japan, Korea, and the and investment restrictions are being argued for or
fisheries agreement was a much more watered-down text, which eviscerated the quarters in Geneva, there will be an enormous Association of South East Asian Nations — with imposed, it is important to shift emphasis and now
crucial article about such inefficient subsidies and retained mainly its control on sense of relief: A global body that most had Australia, New Zealand, and the People’s Republic of describe them as temporary, or necessitated by tran-
subsidies for illegal fishing and those that are targeted towards already depleted assumed was beyond rescue has shown signs of life. China in a broader trade pact. This seemed to cap sient conditions, rather than as an effective reflection
stocks. India will continue to be able to support its close-in fishing communities. The just concluded twelfth ministerial meeting of some years of trade scepticism in New Delhi. of a new, across-the-board, “self-reliance” policy.
India’s threat to torpedo an extension of the moratorium on taxing cross-border the WTO went well beyond its scheduled time to Shortly after the pandemic hit, the prime minister Second, a more comprehensive and consistent
digital flows thankfully was not carried out. It is unclear what such a tax could come to a series of agreements on several contro- announced his new slogan of “self-reliance” or “aat- trade policy needs to be evolved, even if it is not
versial issues, from fishing subsidies to vaccine manirbharta” which has now become something of released to the public. This might help prevent first
bring in, or even how it could be implemented effectively without in effect cutting
patent protection. a touchstone for his government’s policy decisions. responses to problems like inflation being danger-
off domestic internet users from the wider world. What is important from an This was also interpreted by many ous restrictions on trade, for example. It would also
This is another occasion in which India’s digital-policy makers seem to be oper- Indian point of view here is three as a desire to reduce possible exter- force the government to confront contradictions in
ating blind, with no modelling of costs and benefits. The most important issue for things. First, India’s rhetoric has not nal dependencies built up by trade. its own actions, for example between the PLI and
India remained, as always, protecting foodgrain procurement for the public distri- changed at the WTO, and it once Then, after the clashes on the Sino- export taxes. Finally, it might also convince poli-
bution system (PDS). Given that the government has signalled it wishes to reform again soaked up all the attention as Indian border, steps were taken to cymakers of the importance of reliable streams of
the system of procurement, it is not apparent why the PDS is always at the heart of a possible spoiler, thanks to charged check Chinese investment into imports in order to grow exports in an age of global
its overseas negotiation tactics. In any case, India won not a permanent or long- interventions by senior officials. India, and informal trade restrictions value chains. This might also lead to less emphasis
Second, in spite of the rhetoric, placed on the goods trade with the on headline-friendly “big” deals with marquee man-
term extension on the current carve-out for foodgrain stocks, but a decision to
India’s negotiators significantly PRC. On the plus side of the ledger, ufacturers and more attention being paid to the
postpone discussion. Overall, it is at least gratifying that the WTO is not as somnolent watered down their opposition in though, new production-linked building of the ecosystem of smaller producers and
as many supposed, and it can still take decisions by consensus. It is important, order to ensure an agreement was incentive schemes (PLI) — however frictionless trade that such deals need to be suc-
however, that India’s trade negotiators go to the next ministerial meeting — to be reached — and, unlike on previous POLICY RULES poorly designed — did directly target cessful over time.
held before December 31, 2023 — with a clearer and more forward-looking view of such occasions, the need for con- an increase in exports. And third, it must recognise that its arrogance
the national interests, since many vital decisions have been postponed. With the sensus was considered great enough
MIHIR S SHARMA More recently, two near-contra- about trade and investment is counter-productive.
country’s general elections due in 2024, the challenge for Indian negotiators could that other parties also sought to meet dictory impulses have been visible. What private sector investors say to officials in pri-
prove to be formidable. some of India’s concerns. And finally, once again On the one hand, there is clear and welcome effort vate about their supposed enthusiasm for the Indian
many of India’s actual positions did not seem to nec- being put into negotiating bilateral trade deals, even market is not reflected in the actual investment
essarily align with its actual economic interests. if relatively shallow. Two such agreements have numbers into manufacturing in particular; it is born
Persistent problem The broader question raised by these three facts
is this: What can we infer from India’s new stance
already been announced with the UAE and Australia.
During the visit of the British prime minister to New
of a simple desire to stay on the good side of the
government, and is nothing like what the private
India is not creating enough jobs on trade and global integration from its attitude at Delhi earlier this year, a target of Diwali was set for sector says when the government is not the target
the WTO when set aside other recent advances? an agreement between the UK and India. There is audience. At a time when India is competing with
R
ecurrent protests against changes in the government’s recruitment Here is a short and incomplete timeline of Indian also a great deal of energy being displayed in the far more integrated economies, from Bangladesh to
policy or delays in appointment reflect the state of employment creation actions on economic integration over the past three trade relationship between India and the European Vietnam, for an ex-China investment, it should be
in the country. The ongoing violent protests against the change in the years. In late 2019, a few months before the pandemic Union (EU), especially following the visit of European a little humbler about policymaking.
recruitment policy for armed forces, which have led to a massive loss of hit, India decided to stay out of the Regional Commission President Ursula von der Leyen, during
public and private property, are yet another example in this context. The Union Comprehensive Economic Partnership, which joined which a “Trade and Technology Council” was The writer is head of the Economy and Growth Programme
government’s announcement to hire one million people — essentially to assuage several countries and regions with which India already announced that would hopefully address some of at the Observer Research Foundation, New Delhi
+ critics — also suggests that the economy is not creating enough jobs to absorb
India’s increasing workforce. This has been once again established through hard
numbers by the latest Periodic Labour Force Survey (PLFS) annual report. Clearly,
hiring a large number of people in the government is unlikely to address the under-
lying problem.
Although the annual report, which covered the period between July 2020 and
Inflation: Looking beyond forecasts
June 2021, shows that the unemployment rate declined and the workforce partici-
I
n my previous piece last fortnight, I had said “the interest rates, and emerging markets will remain as the new economic superpowers. Only China lived
pation increased, it is important to look beyond the headline numbers. According probability that inflation will come down on its under pressure. And yet, we simply don’t know up to its promise. In 2007, the world was gripped by
to the report, the unemployment rate (in usual status, which captures long-term own is low. This means if the central banks act enough even today. How much of the inflation was the “Peak Oil” theory and perpetually rising oil
unemployment) declined to 4.2 per cent compared to 4.8 per cent during the pre- harshly now, the markets will crash and then rally. If due to the 0 per cent rate, $5 trillion in bond pur- prices. It turned out to be false. Oil, like any other
vious year, and 5.8 per cent in 2018-19. Since this was the period when the economy they are hesitant, the pain will be prolonged”. Well, chases, and $7 trillion in national debt — all caused commodity, rises and falls simply on demand and
was recovering from a stringent lockdown, the labour force participation rate on June 10, it was announced that US inflation, at 8.6 by the Fed and successive US governments? To supply. In 2009-10 a double-dip recession was con-
increased to 41.6 per cent compared with the level of 40.1 per cent in the previous per cent in May, was at a 40-year high, causing mar- deal with the shock of the pandemic, the US made sidered inevitable after the global financial crisis of
kets in the US as well as India to crash. On June 15, stimulus payments of up to $1,200 directly to every 2008. It did not happen.
year. The female workforce participation rate, which has been a significant drag on
the US Federal Reserve hiked the interest rate by as citizen; small businesses could borrow money at When the Fed kept the interest rates low for a
labour force participation, also improved during this period. much as 75 basis points at one go but the hike did not very low rates, and unemployed citizens were paid prolonged period after the 2008 crash, Ray Dalio,
However, this improvement was not particularly on account of improved employ- generate the required confidence that inflation in the $600 per week. If that is being unwound, what will founder of the world’s largest hedge fund, feared
ment opportunities. As some commentators have argued, more people joined the US would be easily tamed. The markets continued to be its impact on demand? How much of the infla- hyperinflation and his team was reading up about
workforce due to the decline in household income. This is also evident in the decline. Investors are perhaps finally tion is due to China’s lockdown the German economy and markets in the post-World
quality of employment. During the period under review, the percentage of people beginning to realise that this turbu- and the Russian war with Ukraine, War I period, when that country suffered hyperin-
employed in the agriculture sector increased to 46.5 per cent as against 45.6 per lent phase may be quite prolonged. which has disrupted supply chains flation. In 2011, Portugal, Ireland, Italy, Greece, and
cent in the previous year. This is significantly higher than the 42.5 per cent in 2018- Central banks don’t react in pan- and led to high energy and food Spain (PIIGS countries) all seemed headed for insol-
19. Consequently, the proportion of labour employed in the manufacturing sector ic to just one piece of data. But they prices? No one, not even the cen- vency. It did not happen. We do not know whether
declined. This is the exact opposite of the kind of shift India’s labour market needs. do react to the possibility of persis- tral banks, has exact answers. And the current consensus about inflation will also be
tent or entrenched inflation. The yet, there has emerged a wrong but the more widespread the consensus the
Sustained higher growth with an increase in productivity can be attained only by
Fed appears to think that inflation widespread consensus about rising more likely it is to fail.
moving the labour force out of agriculture. Overall, while the share of self-employed
is getting persistent when it said, inflation and rising interest rates Meanwhile, macroeconomic conditions will con-
people increased, the proportion of workers earning wages declined. Among the “The committee is moving rates up leading to falling markets. tinue to unfold in our lives with a lot of twists and
workers earning wages and salaries, the percentage of employees not getting any expeditiously to more normal lev- Remember, markets have a way of turns. Last week, oil and natural gas prices fell
social security benefit declined marginally to 53.8 per cent compared to the previous els, and we came to the view that IRRATIONAL CHOICE disappointing a strong consensus. sharply, which ought to boost sentiment this week.
year but was significantly higher than the 49.6 per cent in 2017-18. we’d like to do a little more front- DEBASHIS BASU As we navigate the choppy waters, there will be sev-
The latest quarterly PLFS report for January-March 2022, which was also released end loading on that.” The Fed may The forecasting business eral such periods of relief when the tide would seem
last week and has limited information compared to the annual report, did not call it front-loading, but others think We repeatedly fail to make correct to turn for the better. If the central bank fears a sharp
show any material change in labour force participation with the recovery in economic it is behind the curve. In a sense, it is guaranteed forecasts about complex macroeconomic events and demand slowdown, it may pause its rate hikes, which
activity. As the Indian policy establishment focuses on strengthening the economic that there will be a series of hikes and fairly large never seem to learn from experience. Two years ago, would fire up stock prices again. Finally, stock mar-
recovery in a worsening global environment, the most pressing challenge will con- ones at that. The fact is the federal funds rate, even when the pandemic hit the world, there was a con- kets often presage actual improvement in economic
after this hike, remains at 1.6 per cent when inflation sensus about economic doom. With movements of conditions while the reported economic data invari-
tinue to be employment creation for an expanding workforce. While the government
is 8.6 per cent. What does it mean for us? Whether people and goods across the country completely ably captures the past. It may be worthwhile to pay
is promoting select industries in the manufacturing sector through an incentive rising interest rates will curb US inflation, especially stopped, it was expected that output would shrink, attention to what the markets are telling us, as they
scheme, it would not be able to create jobs at the scale required. Nearly half of caused by the supply shock, is not clear. But there unemployment would be sky-high, and a recession did during the pandemic, rather than rely on con-
India’s labour force is engaged in agriculture and can move only to low-skill man- is a strong inverse correlation between rising rates would be inevitable. That was the popular consensus sensus forecasts.
ufacturing. India’s labour force participation is also significantly low and would be and emerging markets. and it was hopelessly wrong. Do you hear people
a drag on growth in the medium to long run. With that as the backdrop, the consensus is this: talking about BRICS any more? In 2003, Brazil, The writer is the editor of www.moneylife.in
Inflation will remain high, the Fed will keep hiking Russia, India, China, and South Africa were touted Twitter: @Moneylifers
The recluse who confronted the mystery of the universe through much of the history of particle
physics and introducing the key players,
the insights by others in the field who
moved the ideas forward and the
wielding journalists advancing on his reminder letters to confirm appointments. and its failure because of his workaholic decades, the research community would eventual decision to build a machine in
Edinburgh apartment. So he made a pre- Their conversations, not entirely habits; a resulting, paralysing depression; argue, debate, build and expand on his Switzerland — the Large Hadron Collider
emptive decision: “I decided not to be revealing, were mostly conducted via his dedication to social justice causes, idea, setting out on a quest to confirm the — to test the possibilities. The LHC
home.” On the morning of the Higgs’s treasured landline phone. As a which at one point led him to suspect that existence of the Higgs boson and with it would find confirmation for the boson’s
announcement, Higgs crept out his back result, although his publisher describes he had “become an embarrassment” to our own understanding of the universe. decay products in 2012. Close brings to
door, caught a bus to a nearby town, tucked Elusive as “the first some of his At a basic level, Higgs’s theory belongs this story an insider’s knowledge and a
BOOK REVIEW himself into a pub and hunkered down major biography of ELUSIVE: How colleagues. After to a fundamental and puzzling question: combat-ready willingness to defend
with a medicinal pint of ale. Peter Higgs,” Close Peter Higgs all, Higgs notes Where does the mass of the universe come Higgs against his occasional critics, at
DEBORAH BLUM Thus, when Higgs did win the Nobel seems less sure of modestly, “The from? Using the known rules of physics, one point dismissing the high-profile
Solved the
(along with the French physicist François that, describing his Mystery of Mass portion of my life from electromagnetism to quantum British physicist Stephen Hawking as a
I
n early October 2013, the Nobel Prize Englert), neither journalists nor fellow book as “not so for which I am mechanics, Higgs raised the possibility of man with a “singular genius for playing
committee was preparing to announce physicists could find him. “We don’t know much a biography
Author: known is rather an unstable subatomic particle that, the media.”
the winner of its award in physics. The where he is,” one University of Edinburgh of the man but of
Frank Close small — three through a series of fizzing interactions, In other words, this is a very human
leading candidate — as pretty much colleague sadly explained to an the boson named Publisher: Basic weeks in the could lend mass to other particles. He telling of the ways that we’ve figured out
everyone knew — was an 84-year-old exasperated reporter. One is left to wonder after him.” Books summer of 1964.” predicted this particle would be a boson — at least some of the mysteries of our
Scottish scientist named Peter Higgs, who if Frank Close chose the title for Elusive as a Close’s It is those three a notably massive subatomic particle that universe since the mid-20th century.
was not feeling nearly as joyful as you reference to the glimmering subatomic description is more
Price: $30 weeks that anchor helps hold matter together — and that it “What does the discovery reveal about
might think. Yes, he wanted to win the particle of Higgs’s theory — or to the accurate. The Pages: 304 the real story in this would exist in an energy field that enabled the cosmos and our place in the
award, yes, he wanted to be recognised for theorist himself. biographical facts book, a clear, vivid the interactions. Higgs suggested a path to universe?” Close wonders, and he ends
his pioneering insights into how As Close notes, “Peter Higgs has add up to more of a and occasionally confirming the existence of the boson and his book on a note of additional mystery,
subatomic particles build our universe. He managed to avoid much of the pace of brisk sketch than a richly detailed portrait. even beautiful portrait of a scientific the eventual measurement of its decay reminding us that there are great
just wanted to be recognised for it quietly. modern life.” He does his best to avoid both This is not to deny that there are moments breakthrough: the tale of how a relatively products. In doing so, Close writes, the achievements in physics to come and
But as a theorist already heralded for email and cell phones. Close, a physicist of sharp and even bitter insight: Higgs’s obscure Scotland-based physicist theory issued a subtle challenge: “Is this that tantalising questions still shine
his 1964 work predicting the Higgs boson himself and the author of numerous belief that his antisocial personality developed a stunning theory, one that just a clever piece of mathematics or does in front of us, their answers still out of
(sometimes called the God particle), he popular science books, is a long-time developed during a sickly and lonely would help illuminate the invisible, nature really work this way?” reach, ever elusive.
knew he was pipe-dreaming. He could colleague and friend of Higgs’s, but to childhood in northern England — “I grew particulate web that holds our universe Close uses that question as a
almost hear the thunder of microphone- research this volume he was forced to mail up a rather isolated child”; his marriage together. And how in the following launching point, taking the reader ©2022 The New York Times News Service
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QUICK TAKE: NEW MANAGEMENT, VALUATIONS TO SUPPORT UNITED SPIRITS “If there is a recession, it’s already
Investor
(Price ~) The stock of liquor major United Spirits is down 12 per cent The bottom is probably somewhere
over the past month. Edelweiss Securities, while in the next three
733 months”
highlighting concerns on high competitive intensity and
NEW DELHI | low pricing power, has assigned a ‘hold’ rating on the stock MARK MATTHEWSD
846.4 Head of research
MONDAY, 20 JUNE 2022 due to valuation comfort and appointment of a new for Asia,
managing director Julius Baer
<
Cost turbulence may force to offset the surge in ATF price, possibly
reaching a point of demand elasticity
in the travel industry.”
A 5 per cent movement in crude oil
is expected to impact operating profit
STREET
SIGNS
R
ecord high prices of aviation lead to a focus on keeping passenger allotted to anchor investors ends. Anchor
turbine fuel (ATF), a depreciat- traffic at elevated levels. investors hold 6.6 per cent stake in the
ing rupee, demand trends in RUPEE SPOT IndiGo has indicated a 55-60 per company. The lock-in ends for only half these
the upcoming lean season, and com- In inverted scale cent increase in available seat shares; the other half will remain under freeze
petitive pressures could dent miles/kilometres in 2022-23 (FY23). for 60 more days. The stock fell 10 per cent last
near-term prospects of listed aviation Competitive intensity is set to week amid sell-off in the broader market.
stocks - InterGlobe Aviation (IndiGo) 78.08 increase with the entry of Akasa Air and Shares of Delhivery last closed at ~467, slipping
and SpiceJet. Jet Airways. A lot will depend on their below its issue price of ~487. Meanwhile, anchor
Both airline stocks have shed about 72.90 stance vis-à-vis pricing. lock-in also ends for two more companies this
11 per cent each since the start of June. Say Ashish Shah and Vaibhav Shah week — Venus Pipes and Tubes and Paradeep
Given the multiple headwinds faced by of Centrum Broking, “Given the steep Phosphates.
the aviation sector, there could be losses suffered by airlines over the
more downsides for the two airlines. past two years, we expect the current QSR stocks whet investor appetite
The biggest worry for the sector Source: Bloomberg Compiled by BS Research Bureau pricing discipline in the industry to Shares of quick service restaurants (QSR) have
though is the rise in jet fuel price, continue, adjusted for any seasonality underperformed the market this year.
which accounted for 40 per cent of against the dollar. Last week, the impact. Any significant increase in Analysts say investors with a high-risk
their costs in 2021-22. rupee had plunged to its record low DEMAND STAYS STRONG In million competitive intensity could derail this appetite can consider buying these shares at
Oil-marketing companies on of ~78.22 against the greenback. Quarterly Monthly -2022 assumption.” beaten-down levels. They say price hikes
Thursday announced a hike in price to Although the rupee has recovered The Street will track the movement affected by QSR companies have been
its highest-ever levels. These vary somewhat, it is down 3.5 per cent in Q3FY22 Q4FY22 February March April May June* of yields, given the multiple moving absorbed well, and demand momentum
between ~1.41 lakh per kilolitre and the quarter. With 70 per cent of airline Passengers 30.0 24.7 7.7 10.6 10.5 11.4 11.2 parts in this space. ICICI Securities continues to be impressive in the first quarter
~1.47 lakh per kilolitre, depending on costs linked to the dollar, the strength- highlights that yields will be tested in of 2022-23. Moreover, with the dine-in
state taxes. ening of the American currency will Passengers (pre-Covid)* 38.2 35.4 12.4 11.6 11.0 12.2 12.0 the second quarter of FY23 against a channel performing well, QSR players are also
ATF prices are up 120 per cent year- be a major headache for Indian avia- % of pre-Covid period 78.5 69.8 62.1 91.4 95.5 93.4 93.3 seasonally weak period and some focusing on menu innovation and planning
on-year and 36 per cent on a sequential tion companies. Respective periods before Covid; *June numbers extrapolated based on first 14 days Source: JM Financial improving capacity. accelerated store expansion. Sapphire Foods
basis. The movement of ATF prices will Says Ajay Singh, chairman and man- Given the elevated costs and com- (down 22 per cent year-to-date, or YTD) and
need to be tracked, given crude oil aging director, SpiceJet, “The sharp required to ensure the costs of opera- demand, the cost surge could well petitive overhang, investors should stay Jubilant FoodWorks (down 33 per cent YTD) are
prices have corrected to three-week increase in jet fuel prices and the depre- tions are better sustained.” change this. away from the sector caught right now preferred picks by analysts.
lows on Friday due to demand worries ciation of the rupee have left domestic While IndiGo had earlier indicated Say Ashutosh Somani and Heet Vora between costs and competitive pres- Contributed by SUNDAR SETHURAMAN
brought on by interest-rate hikes. airlines with little choice but to imme- that the prevailing fares are much lower of JM Financial Research, “Despite tak- sures on the one side and possible
Another factor that could inflate diately raise airfares. We believe a mini- than the pricing caps in force and that ing a significant price increase, airlines demand hit due to higher ticket prices
costs is the movement of the rupee mum 10-15 per cent increase in fares is higher fares have so far not influenced may be required to take further hikes on the other.
EVENTS THIS WEEK
f Date Particulars
+
An average 267 stocks hit their
52-week lows every day last week
on the BSE as the rout took key
rise at 3% of equity assets June 22
Activity Index
n US - existing home sales
59,886
58,664
40,430
43,940
60,514
31,598
50,331
47,633
41,481
sentiment.
41,817
‘Good chance that foreign money returns around Diwali’ Jun 17 Fiem Industries Sageone Investment 1,020
Managers (B)
PHOTO CREDIT: KAMLESH PEDNEKAR Jun 13 Uflex Flex International (B) 585
It has been a few tumultuous months for global financial markets as they come to terms ment manages its borrowing pro-
with central banks’ action to tame galloping inflation. Still, RAHUL ARORA, chief executive gramme. But as things stand, I do not Jun 13 Uflex Montage 585
officer for institutional equities at Nirmal Bang, is hopeful and tells Puneet Wadhwa in an think the market is factoring in a material Enterprises P (S)
interview that the markets always manage to climb the wall of worry and find ways to deterioration from here. Jun 17 Indiabulls Integrated Core 64
make new highs. Edited excerpts: Real Estate Strategies (S)
THE What has been your investment
Jun 17 Fiem Industries Sageone Flagship 1,020
Have the financial markets fully Given most central bank projections, strategy against the backdrop of rising
factored in the likely global central inflation, though high, will be on a declin-
PESSIMISM IS interest rates and surging inflation? Growth 2 Fund (B)
banks’ action over the next few ing trend as the year wears on. The pes- JUSTIFIED AND Sectors that have seen time-wise and Jun 17 Mangalam Rambara Trading (B) 263
months? simism is justified and the market fall is price correction in the last couple of
To a large extent global central banks’ justified, but it seems like a lot of it is in
THE MARKET years can make a comeback in a material
Cement
movements have been the price. FALL IS way; sectors, such as banking, fast-mov- Jun 15 KBC Global Nomura Singapore (S) 4
priced in to a reasonable ing consumer goods (FMCG), and of late
extent and that is reflected in By when do you see foreign
JUSTIFIED, BUT chemicals, have seen a reasonable cor-
Jun 15 Hindustan Shiv Narayan Baldi 27
Motors HUF (S)
bond yields, too. The silver money chasing emerging IT SEEMS LIKE rection. The entire rural theme will be a
lining, if any, is that these rate good play in the run-up to elections. Jun 17 Lancer Container Abdul Khalik A K 200
hikes are being front-loaded
markets, especially Indian
equities?
A LOT OF IT IS Dark horses can be information technol- Line Chataiwala (S)
and we should see most of RAHUL ARORA There is a good chance of for- IN THE PRICE” ogy (IT) and cement. Jun 17 Lancer Container Abdul Khalik A K 200
them behind us in the next Chief executive officer eign money coming back
for institutional Line Chataiwala (S)
three-four months. While equities, Nirmal Bang
into the Indian market DIIs, especially retail investors, have worsening macros – high inflation, Borrowing is becoming costlier. To
their effects will be felt with around Diwali this year. A been shock-absorbers for the Indian rupee depreciation, widening fiscal what extent will all this dent demand Jun 14 HKG Shah Yatin 14
a lag, equity market valuations, to a large sharp deceleration in growth, coupled markets this time around. Had they not and current account deficit (CAD), and and impact corporate earnings? Bhupendra (S)
extent, factor this in. with high inflation and its resultant been there, amid the kind of FII selling rising Covid cases? While earnings have been cut on a case- Jun 15 KBC Global Wealth 4 U 4
impact on corporate earnings, remains we’ve seen, the Nifty50 easily could have Again, here I think, the news is known. to-case basis, depending on the impact Hospitality Con (B)
Is there any silver lining for global the single biggest risk to the Indian mar- been around 12,500 levels. But the disci- There is nothing unknown. The rupee of inflation or rising interest rates, what
equity markets amid all this gloom kets. A good monsoon, as predicted, and plined approach to investing via system- has already breached 78 to the dollar but is interesting to note is that on the con- Jun 15 KBC Global E Waste Recycling (B) 4
and doom? the build-up to the 2024 elections -- atic investment plans (SIPs) has shown I don’t think the Reserve Bank of India sumer discretionary side, there has not Jun 14 Rachana Infra Geetaben 139
The biggest silver lining is that the mar- which should see increased government the coming of age of the Indian retail (RBI) will want it to be in continuous been too much of a volume impact as Dhaneshbhai Soni (S)
kets always climb the wall of worry and spending — could spur demand in the investor. Of course, confidence to some depreciation and step in whenever seen in quick-service restaurants (QSR),
find ways to make new highs. This has economy and could be positive triggers extent would be shaken, especially given needed. On current evidence, we see no multiplex, select paint companies, etc. Jun 13 Future Retail Vistra Itcl India (S) 8
happened after every crisis or war. The for the markets and flows. the fall in new generation stocks, which reason to rework our recently put targets On average, we have cut earnings out- Jun 14 HKG Ramesh Sawalram 14
biggest economic threat to the world now were listed with much fanfare. Still, the on CAD, inflation, and fiscal deficit. Of looks for the affected sectors between 5 Saraogi (B)
is inflation and interest rates -- that devil How long do you see domestic spirit seems to be intact. course, a lot depends on the extent of gov- and 20 per cent, but we do believe that
is known; the war is known; the economic institutions (DIIs) and retail investors ernment spending in the run-up to the corresponding stock prices are captur-
impact to a large extent is measured. keep their spirits up? Are the markets prepared for general elections and how the govern- ing these cuts. (B) -Buy (S) -Sell Source: Exchanges
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NEW DELHI | MONDAY, 20 JUNE 2022 PERSONAL FINANCE 11 <
N
from going there had also been put up. arendra Singh Rathore decided by the Supreme Court the underwriting was done.
The institute argued that it could not be had purchased a life on November 24, 2019, it was “Customers again have an
held liable as Swarna was over 18 years old, insurance policy for held that suppression of facts in opportunity to check the decla-
and was mature enough to understand the ~30 lakh from HDFC Standard the proposal form would render rations made in the proposal
CONSUMER PROTECTION caution notice, but had disregarded it and Life Insurance. Rathore died of the insurance policy voidable by form,” adds Mehta.
JEHANGIR B GAI voluntarily gone to the terrace to consume breathlessness and a heart the insurer. Besides pre-existing dis-
prohibited drugs and tobacco. The insti- attack. The insurer repudiated “The NCDRC judgement in eases, customers must correctly
tute claimed it had spent ~1,56,000 the claim after which Rathore’s this case relies on the Supreme reveal information about their
Swarna Jaswanth had taken admission in towards Swarna’s medical expenses. wife filed a complaint with the Court judgement in the above- income and all the other policies
the Vogue Institute of Fashion Technology After considering the oral and doc- State Commission, wherein she mentioned 2019 case, where held by them.
near Bengaluru’s Football Stadium umentary evidence, the State Commission stated that her husband had the latter said that if the
Complex. The institute was run by held the institute guilty of negligence. It signed the application form in insured signs an insurance Customer bears the brunt
Manduda Educational Trust through its observed that Swarna was merely 19 years good faith at the insurance contract, then she has to abide LESSONS FROM SUPREME COURT JUDGMENTS It is the customer’s responsibil-
chairman M.M. Kairappa. old when she died, and that she would agent’s behest. by its provisions. The insured ity to do the due diligence at the
During the first academic year, Swarna have earned nothing less than ~25,000 per The insurer argued that can’t later claim she signed the Sulbha Prakash obtain a life insurance time of purchase. Failure to do
secured first class. The next year, the col- month after completing the B.Sc. F.A.D. Rathore had concealed material proposal form filled by the Motegaonkar vs LIC of policy is duty bound to so will mean that the claim will
lege shifted its students to another build- course. So, it computed ~25 lakh as com- information regarding the med- agent without reading it,” says India (October 5, 2015) disclose all material facts be denied. The ultimate loss will
ing located at Kasaba Hobli while it was pensation, and ordered this amount to be ical ailments he had been suf- Sumit Kumar, a New Delhi- n Death due to ischaemic bearing upon the issue as be hers.
still under construction. Swarna’s parents paid along with 9 per cent interest from fering from since 2008. The based consumer lawyer. to whether the insurer “Nowadays, with policies
heart disease and
objected, but the institute claimed that all the date of complaint. Commission ruled in favour of He adds that after the 2019 would consider it being issued after just a video
precautionary measures had been taken, The order was challenged in appeal. the insured, stating that hyper- Supreme Court judgement, con-
myocardial infarction had conversation, you may be able
nothing to do with the appropriate to assume
and that construction would be completed The National Commission observed that tension and diabetes are not sumer courts are unable to hold to get one even if you hide a dis-
concealed ailments— the proposed risk
soon. In November 2011, the the layout plan did not life-threatening diseases. Even agents responsible, which is ease. After three years, insurers
institute declared a vacation The National show any terrace on the if the insured had a problem in why in this case the NCDRC lumbar spondylitis with Manmohan Nanda vs are anyway bound to pay the
to complete construction. Commission observed second floor. Also, the con- the pancreas, that could not ha- requested IRDAI to formulate PID with sciatica—and United India Assurance claim under Section 45 of the
Swarna attended classes the layout plan didn’t struction of the second ve been the cause of his death. new guidelines for agents. hence insurance claim (December 6, 2021) Insurance Act. But if there is an
regularly when they show a terrace on the floor had been completed. The insurer then filed an Kumar reiterates the advice should not be denied early claim, the insurer could
resumed on December 5, second floor, and the It noted that the institute’s appeal with the National that customers must sign the n Insured died due to appoint an investigator. And if
2011. On December 14, 2011, institute’s contention contention that the step Consumer Disputes Redressal proposal form after reading it, Bajaj Allianz Life myocardial infarction. But the investigation reveals that a
during the recess she went the step wasn’t broken was not broken was falsi- Commission (NCDRC), which to ensure that all the informa- Insurance Company he had made known to past ailment was hidden, the
along with her friends to the was falsified by fied by the photographs ruled in the insurer’s favour. It tion entered in it is correct, or vs Dalbir Kaur the insurer he had claim could be denied,” says
canteen on the second floor. photographs produced by it. The stated in its judgement that the that information about past (October 9, 2020) diabetes mellitus II, so Melvin Joseph, founder, Finvin
While returning, when she National Commission also causes of death—heart attack medical ailments, which they insurer must indemnify Financial Planners.
put her foot on the first step, she lost her agreed that suitable safety precautions, and respiratory disorder—had had provided to the agent, was n A proposer who seeks to By then the insurer would
balance, as it was broken. Since there was such as putting up a boundary, grill or rail- a direct link with the undis- incorporated. Source: NCDRC judgment in HDFC Standard Life Insurance vs have collected its premiums
no railing, she toppled on the glass gal- ing had not been adopted. It upheld the closed diseases: pancreatitis This case also highlighted Vishan Rathore (June 16, 2022) while the agent would have
lery, which broke, and she crashed right finding that this constituted negligence and diabetes mellitus. the point that the nature of the gathered his commissions. The
till the ground floor. She sustained for which the institute would be liable. The National Commission, disease that ultimately causes insurer, the customer has to sign ing director (MD), Secure Now insured is finally left to bear the
injuries to her head and spinal cord, and The National Commission also however, urged the Insurance the insured’s death would have a benefits illustration, which Insurance Broker. brunt of non-disclosure.
went into a coma. The institute took observed that the fee of ~3,20,000 Regulatory Development a bearing on court judgements. states how much premium she Once the proposal form goes “Stating prominently in the
Swarna to hospital, but she expired on charged for the course definitely justified Authority of India (IRDAI) to “The courts will take into will have to pay, the rate of to the insurer, the latter makes proposal form that not revealing
December 25, 2011. the expectation of future earning examine the role of agents while account whether the undis- return used for projecting a verification call. A one-time past ailments could lead to
Swarna’s parents and sister lodged a capacity of ~25,000 per month, and held soliciting life insurance policies closed ailment had any correla- returns, the surrender value if password (OTP) is sent to the repudiation, as proposed by
police complaint and also filed a consumer that the compensation awarded was rea- and formulate new guidelines tion with the cause of death. In the insured exits prematurely, customer’s mobile number to NCDRC, is a step in the right
complaint before the Karnataka State sonable and justified. for them. It also urged IRDAI to case there was no correlation, and so on. “This is a critical doc- ensure she picks up the phone. direction,” says Joseph.
Commission. They claimed that Swarna Accordingly, by its order of June 14, modify the proposal form so the courts may rule in favour of ument on which the regulator During this call, the insured is He suggests the declaration
was a bright student, and they had 2022, delivered by Justice Ram Surat Ram that the point—non-disclosure the insured’s nominee. But if maintains tight control, specif- again asked about past ailments to be made by the customer in
invested in her education, but her death Maurya, the National Commission of medical conditions would there was a correlation, the ically with regards to the returns and other details. “When the this regard must be put in a sep-
due to negligence had caused them a loss. dismissed the appeal and affirmed the lead to repudiation of claim— courts are likely to rule in the shown, so that the customer verification call comes, the cus- arate box (or else it would get
The institute contested the case stating decision of the State Commission. was featured prominently. insurer’s favour,” adds Kumar. buys the policy with the right tomer must answer it herself,” lost in the lengthy proposal
that construction was being carried on expectations. Understand it says Mehta. form) and a separate signature
under the supervision of a qualified archi- The writer is a consumer activist Don’t sign blindly Buyer beware before signing,” says Kapil When the policy document should be taken from the
In the Reliance Life Insurance Before the policy is sent to the Mehta, co-founder and manag- is delivered, the package con- insured for it.
POSSESSION NOTICE
Mr.Kamal Verma, Entir e Ff, Without Roof Rights, Gali No 18-J, Out Of Khasra No 498, Village (Rupees Sixteen Lakh Five Hundred Mar- June-
(Prospect No. 935757) Nasir pur, Sadh Nagar, Palam Colony, West Delhi, 110045, Delhi, India Seventy Five Only) 2022 2022
Mr. Sandeep Kumar All that piece and parcel of: Flat No. 22, Ground Rs.16,33,429.00 (Rupees Sixteen 21- 16-
Mrs. Sangeeta Floor, measuring 33.29 sqm, Pocket-5, Block-B20, Lakh Thirty Three Thousand Four March- June- EDELWEISS ASSET RECONSTRUCTION COMPANY LTD.
(Prospect No IL10025354) Sector-35, Rohini , Delhi, India, 110085 Hundred Twenty Nine Only) 2022 2022 CIN: U67100MH2007PLC174759
Mr. Anup Singh, Mrs.Jyoti All that piece and parcel of: Unit No. 1201, Tower-1, Rs. 18,78,419.00/- (Rupees Eighteen 14- 15- Retail Central & Regd. Office: Edelweiss House, Off CST Road, Kalina, Mumbai 400098
M/S Dahiya PG and Guest House Carpet Area 578.27 Sq. Ft., Floor-12, Pyramid Lakh Seventy Eight Thousand Four Feb- June-
(Prospect No. IL10115868) Heights, Gurgaon Haryana 122001 Hundred Nineteen Only ) 2022 2022 Whereas, the Authorized Officer of the Secured Creditor mentioned herein, under the Securitisation and Reconstruction of Financial
For, further details please contact to Authorised Officer at Branch Office:IIFL House, India Infoline HousingFinance Ltd, Plot Assets and Enforcement of Security Interest (Act), 2002 and in exercise of powers conferred under Section 13(12) read with (Rule
No. 30/30E, Upper Ground Floor, Main Shivaji Marg, NajafgarhRoad, Beside Jaguar Showroom,Moti Nagar, New Delhi/ 3)of the Security Interest (Enforcement) Rules, 2002 issued a demand notice as mentioned below calling upon the borrower(s) to
or Corporate Office: IIFL Tower, / or Corporate Office: Plot No.98, Phase-IV, Udyog Vihar, Gurgaon, Haryana. repay the amount mentioned in the notice within 60 days from-the date of receipt of the said notice.
Place:Delhi, Date: 21-06-2022 Sd/- Authorised Officer, For IIFL Home Finance Ltd. Thereafter, Assignor mentioned herein, has assigned the financial assets to Edelweiss Asset Reconstruction Company Limited also
as its own/acting in its capacity as trustee of various trusts mentioned hereunder (hereinafter referred as “EARC”). Pursuant to the
assignment agreements, under Sec.5 of SARFAESI Act, 2002, EARC has stepped into the shoes of the Assignor and all the rights, title
Public Notice For E-Auction For Sale Of Immovable Properties and interests of Assignor with respect to the financial assets along with underlying security interests, guarantees, pledges have vested
Sale of Immovable property mortgaged to IIFL Home Finance Limited (Formerly known as India Infoline Housing Finance Ltd.) (IIFL-HFL) Corporate Office in EARC in respect of the financial assistance availed by the Borrower and EARC exercises all its rights as the secured creditor.
at Plot No.98,Udyog Vihar, Phase-IV,Gurgaon-122015.(Haryana) and Branch Office at:- Plot No. 30/30E, Upper Ground Floor, Main Shivaji Marg, The borrower having failed to repay the amount, notice is hereby given to the borrower and the public in general that the undersigned
Najafgarh Road, Beside Jaguar Showroom,Moti Nagar, New Delhi/Office No 1, First Floor, Mahaluxmi Metro Tower, Plot No. C -1,Sector - 4, being the Authorised Officer of Edelweiss Asset Reconstruction Company Limited has taken possession of the property
Vaishali, Ghaziabad, Uttar Pradesh - 201010. under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, described herein below in exercise of powers conferred on him under sub-section (4) of section 13 of Act read with rule 8 of the
2002(hereinafter "Act"). Whereas the Auhorized Officer ("AO") of IIFL-HFL had taken the possession of the following property/ies pursuant to the notice Security Interest Enforcement) Rules, 2002 on the date mentioned against each property.
issued U/S 13(2) of the Act in the following loan accounts/prospect nos. with a right to sell the same on ''AS IS WHERE IS BASIS & AS IS WHAT IS BASIS'' The borrower's attention is invited to provisions of sub-section (8) of section 13 of the Act, in respect of time available, to redeem the
for realization of IIFL-HFL's dues, The Sale will be done by the undersigned through e-auction platform provided at the website: www.bankeauctions.com
secured assets.The borrower in particular and the public in general is hereby cautioned not to deal with the property and any
Borrower(s) / Demand Notice Description of the Immovable Date of Physical
Co-Borrower(s) Date and Amount property/ Secured Asset Possession Reserve Price dealings with the property will be subject to the charge of the Edelweiss Asset Reconstruction Company Limited for the amount
/Guarantor(s) mentioned below and interest thereon.
13-Jan-2022 All that part and parcel of the prop- 11-Jun-2022 Rs.55,12,000/-
1.Mr. Vinod Rs.27,29,522/- (Rupees Twenty erty bearing Wz-6, Old Plot No.- Sl Name of Name Loan Account Borrower Name & Amount & Date of Date of Possession
(Rupees Fifty Five Lakh
2. Mr. Balraj Bhati Seven Lakh Twenty Nine Thousand 31, land area measuring 50 sq. Total Outstanding As On Date Twelve Thousand Only) No Assignor of Trust Number Co-Borrower(s) Name Demand Notice Possession Status
3.Mrs. Manisha Bhati Five Hundred Twenty Two Only) yds., part of Khasra No. Kh.No.- 14 - Jun - 2022 Dewan Mr.Karan Kumar(Borrower) Rs. 10,88,926.40/-(Rupees
Earnest Money Deposit (EMD)
4. M/s. Vinod Bid Increase Amount 32/14, situated in the area of vil- Rs.26,58,256/-(Rupees Twenty Rs.5,51,200/-(Rupees Five Lakh Housing “EARC 1025395 & Anju Arora (Co Borrower) Ten Lac Eighty Eight
(Prospect No Rs.40,000/-(Rupees Forty lage Khyala, Chand Nagar, Six Lakh Fifty Eight Thousand Fifty One Thousand Two 1 Finance TRUST [199- Thousand Nine Hundred 15.6.2022
Physical
944276) Thousand Only) Kanhiya Park, Delhi, 110018 Two Hundred Fifty Six Only) Hundred Only) BEARING TO REPAY THE Possession
25-Mar-2022 Symbolic possession Limited. SC-371 00041172] AMOUNT MENTIONED IN Twenty Six and Forty Paise)
1.Mr. Ramanuj All that part and parcel of the proper- Rs.22,97,600/-(Rupees Twenty
Rs.24,52,854/- (Rupees Twenty ty bearing Office No. - 1, Second 07-Jun-2022 (DHFL) THE NOTICE BEING 26 Oct, 2020
Pandey Two Lakh Ninety Seven
2.Mrs. Garima Pandey Four Lakh Fifty Two Thousand Floor, C-33, Sector - 15, having cov- Total Outstanding As On Date Thousand Six Hundred Only) DESCRIPTION OF THE PROPERTY: All that piece and parcel of House No. 2204/LIG, Ground floor, Housing board
Eight Hundred Fifty Four Only)
(Prospect No. ered 37.35 Sq. Mtr. (Approx), 10 - Jun - 2022 Rs.25,28,343/- Earnest Money Deposit (EMD) colony, Sector-55, Tehsil Ballabgarh, District Faridabad, Haryana admeasuring 15.97 SQ. MTRS.” Bounded as under:
Bid Increase Amount
875583& 933686 & Rs.25,000/-(Rupees (Rupees Twenty Five Lakh
Twenty Vasundhara Ghaziabad-201012, Twenty Eight Thousand Three Rs.2,29,760/-(Rupees Two Lakh Twenty Nine East: H. No. 2203/GF, West: H. No. 2205/GF, North: Gali , South: Road Owned vide Sale Deed dated 27/11/2014
932981) Five Thousand Only) Uttar Pradesh, India Hundred Forty Three Only) Thousand Seven Hundred Sixty Only) bearing Registration No.9779, registered in the office of Sub Registrar, Ballabgarh
Date of Inspection of property :20-Jul- EMD Last Date : 22-Jul-2022 till 5 Date/ Time of E-Auction :25-Jul-2022 HDB Mr. Jitendra Tyagi (Borrower) Rs. 77,25,779.76/-(Rupees
2022 1100 hrs -1400 hrs pm. 1100 hrs-1300 hrs.
Financial & Smt. Rakesh Tyagi and Mr. Seventy-Seven Lakh Twenty
Mode Of Payment :- All payment shall be made by demand draft in favour of "IIFL Home Finance Limited" payable at Gurugram or through “EARC Five Thousand Seven
RTGS/NEFT The accounts details are as follows: a) Name of the account:- IIFL Home Finance Ltd., b) Name of the Bank:- Standard Charted 2 Service TRUST 1293279 Naveen Tyagi (Co-Borrowers) Physical
Bank Ltd., c) Account No:-53105066294, d) IFSC Code:-SCBL0036025 or through Payment Link: https://quickpay.iiflfinance.com, Limited. BEARING TO REPAY THE Hundred Seventy Nine and 15.6.2022 Possession
SC-375
TERMS AND CONDITION (“HDB” / AMOUNT MENTIONED IN THE Seventy Six Paise only)
1. For participating in e-auction, Intending bidders required to register their details with the Service Provider https://www.bankeauctions.com, well in “Assignor”). NOTICE BEING 28 Sep, 2020
advance and has to create the login account, login ID and password. Intending bidders have to submit / send their "Tender FORM" along with the
payment details towards EMD, copy of the KYC and PAN card at the above mentioned Branch Office. DESCRIPTION OF THE PROPERTY: All Piece And Parcel Of The Built Up Property Bearing House No. K-80/14, Out Of Khasra
2. The bidders shall improve their offer in multiple of amount mentioned under the column "Bid Increase Amount". In case bid is placed in the last 5 No. 456, Measuring 100 Sq. Yds Consisting Whatsoever Thereon And With The Right To Constructed Upto Last Storey, Situated
minutes of the closing time of the auction, the closing time will automatically get extended for 5 minutes. At Village Gonda Gujran, Khadar, Gali No-20, Subhash Mohalla, West Ghonda, Illaqa Shahdara, Delhi-110053” Bounded as
3. The successful bidder should deposit 25% of the bid amount (after adjusting EMD) within 24 hours of the acceptance of bid price by the AO and the balance 75% under: On The East By: Road 15 Ft. Wide , On The West By: Other Property, On The North By: Other Property, On The
of the bid amount within 15 days from the date of confirmation of sale by the secured creditor. All deposit and payment shall be in the prescribed mode of payment. South By: Other Property.
4. The purchaser has to bear the cess, applicable stamp duty, fees, and any other statutory dues or other dues like municipal tax, electricity charges,
land and all other incidental costs, charges including all taxes and rates outgoings relating to the property. M/s Gulati Enterprises Rs.12,72,84,378/- (Rupees
5. Bidders are advised to go through the website https: //bankeauctions.com and https://www.iifl.com/home-loans/properties-for-auction for detailed IndusInd (Borrower), Mr. Anil Gulati, Twelve Crore Seventy-Two
terms and conditions of auction sale & auction application form before submitting their Bids for taking part in the e-auction sale proceedings. “EARC Narendra Nath Gulati, Mrs. Lakh Eighty-Four Thousand
6. For details, help procedure and online training on e-auction prospective bidders may contact the service provider E mail ID:- support@bankeauctions.com, 3 Bank Ltd. 65000 Physical
Support Helpline Numbers:@7291981124/25/26.and any property related query Mr. Sanjay Kumar @9643304680 Email:- kumarsanjay@iifl.com (IBL/ TRUST Aman Gulati, Mohinder Singh Three Hundred and Seventy- 16.6.2022
7261401 Possession
7. Notice is hereby given to above said borrowers to collect the household articles, which were lying in the secured asset at the time of taking Assignor)”). SC-353 , Har Charan Singh, Joginder Eight only) Seventy Nine and
physical possession within 7 days, otherwise IIFL-HFL shall not be responsible for any loss of property under the circumstances. Singh, Mrs. Gaeta Gulati & Seventy Six Paise only)
8. Further the notice is hereby given to the Borrower/s, that in case they fail to collect the above said articles same shall be sold in accordance with Law. 15 May, 2019
9. In case of default in payment at any stage by the successful bidder / auction purchaser within the above stipulated time, the sale will be cancelled Sushil Gulati (Guarantor/s)
and the amount already paid will be forfeited (including EMD) and the property will be again put to sale. DESCRIPTION OF THE PROPERTY: PROPERTY No.1: All That Piece and Parcel of Residential land situated, being and lying at khasra
10. AO reserves the rights to postpone/cancel or vary the terms and condition of tender/auction without assigning any reason thereof. In case of any no. 7747, Balupura Road, Adarsh Nagar, Thok Maliyan, Ajmer, Rajasthan. Measuring 219.72 sq. yards. Property No. 2 All that Piece and
dispute in tender/Auction, the decision of AO of IIFL-HFL will be final. Parcel of residential property situate being and lying at Plot No. 5, AMC No. 28/255 (old), 216/30 (new) Mayo Link Road, Ajmer, Rajasthan.
STATUTARY 30 DAYS SALE NOTICE UNDER RULE 8 (6) OF THE SARFAESI ACT, 2002 Measuring 402 sq. yards.
The Borrower are hereby notified to pay the sum as mentioned above along with upto dated interest and ancillary expenses before the date of
Tender/Auction, failing which the property will be auctioned/sold and balance dues if any will be recovered with interest and cost. Place: Delhi Sd/- Authorized Officer
Place:- Delhi , Date: 20-Jun-2022 Sd/- Authorised Officer, IIFL Home Finance Limited. Date: 17.06.2022 Edelweiss Asset Reconstruction Company Limited
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10,017
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GUEST COLUMN
RAVI DUVVURU
Regulatory
business
The advent of fintech firms
Source: How India Lends FY 2021, CRIF High Mark
engagement:
FSR, December 2021, that the retail-led
offering contactless credit growth model itself is confront-
ing headwinds. First, delinquencies in
A sine qua non support has seen an the wider consumer finance portfolio
have risen. Second, the new-to-
credit segment — the key
A structured regulatory engagement with the
banking regulator is essential for policy
uptick in the disbursal of driver of consumer
credit growth in the
makers and the industry to meaningfully
formulate and transmit policy seamlessly.
instant loans, especially pre-pandemic
period — is show-
While the Reserve Bank of India (RBI)
interacts with industry bodies and market to millennials, reports ing a decline in
originations.
participants, the second Regulatory Review The report
Authority and its advisory group signalled a Raghu Mohan said an “analysis of
paradigm shift to strengthen collaboration. I historical data shows
am outlining some essential elements of that in emerging market
C
stakeholder engagement by regulators in key an credit be handed out that retail loans are generally economies, non-perform-
markets, with whom I had interactions. faster than Maggi noodles? recording double-digit growth, ing assets typically peak six
UNITED KINGDOM: Treasury and Last Thursday, CASHe “although the pace of growth to eight quarters after the
regulators are subject to various obligations launched a WhatsApp- remains below its pre-Covid level.” onset of a severe recession.”
intended to support stakeholder engagement enabled service for instant credit, Housing and other personal loans cured Whether we are in a recession
with the policy-making process, and to help which V Raman Kumar — the fin- constituted 64 per cent of incremen- nature, were is arguable, but we are definitely not
ensure it is rigorous, evidence-based and open tech’s founder and chairman — tal credit during the last two financial cautious and selective in a sweet spot by any stretch of the
to external challenge. Regulators are required claims is a first-of-its-kind, because years. While state-run and private- when sanctioning them. imagination — the FSR, December 2021
to give an explanation of representations “today’s smart consumers demand sector banks dominate the personal Fintechs and NBFCs were quicker is indirectly saying that the retail book
received and how they have been assessed. instant gratification and contactless loans segment, STPL is the turf of off the mark when hawking these post-pandemic, there appears to of Mint Road-regulated entities may
INDONESIA: For changes in regulations support”. non-banking financial companies loans to new-to-credit or new-to-cat- have been a change in the end-use be carrying pain spots.
with potential impact on banking operations With so many “smart consumers”, (NBFCs). egory customers, riding on the back of such loans — they are being used
and strategy, the Financial Services Authority CASHe saw a 237 per cent annual “The lending landscape has dra- of what they considered to be their for medical emergencies, advances P2P platforms
of Indonesia (Otoritas Jasa Keuangan, or OJK) growth in the number of small loans matically shifted in the last few years. better ability to profile customers and on salaries, and towards paying rent- Yet another point has not got the
seeks industry feedback. Draft policy is disbursed, to 430,000 in FY22, from Personal loans and instant loans crunch credit-bureau data. als. And the evidence is not merely attention it deserves. RBI data show
formulated with closed group discussions 127,000 in FY21, with an average against credit-card limits have seen Bhavin Patel, co-founder and CEO anecdotal. This brings us to the issue that while lending on peer-to-peer
and working groups (WGs) with feedback ticket-size of about ~40,000. an uptick,” says Navin Chandani, of LenDenClub, argues that fintechs of delinquencies. (P2P) platforms makes for a minus-
sought from stakeholders. Regulations issued A recent report by CRIF High Mark managing director and chief execu- took the lead by introducing innova- “Delinquency rates for small- cule share (~2,093 crore as on
by Bank Indonesia (the banking regulator) — (How India Lends: Credit Landscape tive officer (CEO) at CRIF High Mark. tive digital lending products like buy- ticket size loans are on a par with var- September 30, 2021) of aggregate
considered as macro-prudential — are in India FY21) has it that small-ticket “Millennials have entered the loan now-pay-later (BNPL), and pay-in- ious other secured loan products that NBFC credit, there was significant
normally issued with little or no consultation personal loans (STPL, or those under spectrum and are likely to have a parts offerings. “These products are are available in the market,” says traction in activity during the pan-
with industry. However, regulations that ~100,000, which are a sub-set of the majority share in terms of borrowers.” easy to avail of, as they are built on Patel. demic period — the ~2,093 figure rep-
impact banking strategy and operations are personal-loan market) contributed 50 robust artificial intelligence and Kumar is upfront. He says delin- resents a three-fold growth in the
always issued after consultation with per cent by volume in FY21. The drivers machine learning rails and provide quencies in unsecured STPL range credit intermediated. (P2P is akin to
industry focus groups. The report is the only granular Now, quick-gratification loans have convenient payment mechanisms,” between 7 and 12 per cent and are a another form of crowd-funding.)
summation available in the public been around for years and gathered he says. The company’s loans dis- concern — they peaked during the And the fact that customers
domain, though the Reserve Bank of pace in step with consumerism. bursed grew more than 85 per cent in first two Covid phases owing to the thought of P2P platforms as a better
India’s (RBI’s) Financial Stability Marquee names like HDFC Bank, number in FY22; the amount was up slowdown and job losses. “And the avenue to source credit tends to hide
Report, December 2021 (FSR ICICI Bank and Axis Bank do have by over 150 per cent. reason why these loans are expensive the reality that investors also
December 2021), too, had observed such offerings, but, given their unse- But what is interesting is that is that lenders have to factor in higher searched for higher yields in a low
delinquencies.” interest-rate environment. And,
Better technology and underwrit- therefore, the bigger plot from hereon
ing smarts plus automated collection will be worth watching.
strategies have helped CASHe to keep The last three years have seen an
these in the 8-9 per cent range. “We abundance of liquidity, with the RBI
expect this to stabilise around 7.5 per- accommodative in its monetary pol-
+ cent year,” Kumar adds. icy. All that has changed, and we are
well into a switchover in the interest-
The RBI has a THAILAND: The The pain points rate cycle. In itself, this should not be
communication Bank of Thailand’s The party seems to be winding down a concern, but do remember that
policy, but it is (BoT’s) regular as well. The CRIF High Mark report from 2019, Mint Road’s regulation is
time for an communication with says that overall personal loans recov- that all consumer loans (that is, loans
engagement the industry is done ered, with originations in Q3FY21 and given out since) should be pegged to
strategy document through several Q4FY21 higher than the pre-pan- external benchmarks — the repo rate
incorporating best approaches, demic level in Q4FY20, but STPLs or Treasury Bill yields.
practices of other including meetings remained adversely impacted in FY21 Simply put, a sharper transmis-
central banks in with the Thai Bankers due to the pandemic. The portfolio- sion of the hike in policy rates to bor-
key markets Association. “We at-risk (PAR) for personal loans (in the rowers is on the cards. And unlike
Finetune” meetings 31-180 days-past-due period) was 3.3 during the pandemic, no loan-servic-
are set up twice a year by BoT with senior per cent in FY21; for STPL, it was ing breather is on offer. And, we have
compliance officers of banks as well. And this is The landscape has shifted The reason why small-ticket Innovative digital lending higher, at 8.8 per cent. no data on delinquencies, or even on
followed by the issuance of consultation papers Another trend is the 40 per cent the restructuring sought by cus-
for feedback on updates to regulation. If the dramatically in the last few personal loans are expensive products are easy to avail of, reduction in the average ticket size tomers by retail segment.
regulations under revision are complicated, years. Instant loans against is that lenders have to factor as they are built on machine of personal loans to ~150,000 in FY21, It is also pertinent to keep in mind
BoT constitutes a WG with members from ~240,000 in FY17. This data for that the retail book undergoes a
nominated by industry associations. credit-card limits have in higher delinquencies, learning rails and provide STPL is not available, but it indicates churn every three or four years, given
SINGAPORE: The Monetary Authority of seen an uptick ranging from 7 to 12 per cent convenient means of payment broadly that people are borrowing the shorter tenure of such loans (save
Singapore (MAS) issues consultation papers for smaller amounts that may not nec- for mortgages, which are of much
comment when proposing changes to essarily be used for conspicuous con- longer tenures and are linked to
regulations. And for more material regulations sumption, but to ease the grind appreciating assets).
— like Libor reform — it’s normal for the MAS NAVIN CHANDANI V RAMAN KUMAR BHAVIN PATEL of everyday life. If true, this is an omi- In the specific case of loans dis-
to set up and action a steering committee with Managing Director & CEO, Founder & Chairman, Co-founder & CEO, nous sign. bursed for instant gratification, also
terms of reference with significant secretarial CRIF High Mark CASHe LenDenClub These aspects need to be read along unsecured in nature, how they will
and potential funding support. Project with another observation in the RBI’s turn out is anybody’s guess.
milestones are fixed and a communication
strategy built, leading to various consultation
and information papers being published with
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NEW DELHI | MONDAY, 20 JUNE 2022 TAKE TWO 15 <
T
he industry may account for just Subramaniakumar’s Linkedin profile Malegam before joining.
0.05 per cent of the total volume of TAMAL BANDYOPADHYAY describes him as a “turnaround special- At ICICI Bank, she was exposed both
single-use plastics in the country. ist”, “financial inclusion advisor and con- to corporate banking as well as rural bank-
And the product it uses is just one among On June 19, 2018, the day ICICI Bank Ltd’s sultant”, “banking technology specialist”. ing. In fact, she had started the rural and
the 22 — including spoons, forks, plates, CEO and managing director Chanda It also talks about his expertise in IT man- agribusiness at the bank. After joining
knives and trays — that will be banned Kochhar went on leave and Sandeep agement, compliance, governance and Standard Chartered Bank in 2016, she
across the country from July 1 by govern- Bakhshi took over as its chief operating audit, among others. turned around its retail business.
ment order. officer, the bank’s stock rose 4 per cent. RBL Bank is a story of phenomenal The search committee consisted of
Yet, it is the plastic straw that is at the Three and a half months later, in October, growth. Since 2010, its loan book has two members of the nomination
centre of public focus as fast-moving con- when Kochhar resigned and Bakhshi grown from around ~1,100 crore to cross and remuneration committee of the
sumer goods (FMCG) companies make a moved into the corner room, the stock ~60,000 crore, and
last-ditch effort to get the government to But in May, AARC changed its stance jumped 5.8 per cent. deposit portfolio from
extend the deadline. MANY A SIP and told the government that it would Many years back in late 2007, IndusInd ~1,600 crore to over
Specifically, it’s the plastic straws used n In August 2021, the government replace plastic straws with paper but Bank Ltd stock more than doubled when ~79,000 crore. The cap-
in small tetra packs between 75 ml and bans 22 single-use plastic products would still require an extension of 18 market sensed that Romesh Sobti, then ital, too, has grown
250 ml for juices, beverages, milk and months. It chalked out a three-pronged executive vice president – country execu- manifold even as cor-
with effect from July 1, 2022
even chaas. That’s because the companies strategy — import straws, import tive, India, and head, UAE and subconti- porate loans worth
that are impacted most are the big ones n Big FMCG companies say they machines to make straws in India, and try nent, at ABN Amro Bank NV, would take around ~2,000 crore
— such as Amul, Parle Agro, Dabur have a problem replacing plastic out compostable plastics for straws that over as the boss of the private bank. Sobti have turned sour.
and PepsiCo. straws on small tetra pack don’t have harmful effects. But the gov- took over the reins in February 2008. It has been on the
With a collective turnover of ~6,000 products because of a global ernment did not respond. Fast forward to 13 June 2022. The RBL RBI radar since FY20
crore, these companies have more heft in supply shortage “Many companies thought that just as Bank Ltd stock tanked 22.45 per cent to for its over-depen-
relation to their contribution to the use of the food standards authority grants exten- close at ~87.9, its lifetime low, after the dence on bulk deposits
single-use plastic. Together, they con- n In April 2022, the industry creates sions on various issues, the same thing bank had announced over the weekend for liabilities and unse-
sume about six billion straws every year. the Action Alliance for Recycling would happen this time. But it did not. that the Reserve Bank of India (RBI) cured loans for assets.
Their problem is that these straws have to Beverage Cartons to lobby Considering there are 22 other products, cleared the appointment of R The unsecured credit
be replaced by expensive paper straws the government for an it would have been suicidal to grant just Subramaniakumar as its CEO and MD. card business of its
that India does not produce at present. 18-month extension one product extension in a market in Rajeev Ahuja was running the show loan portfolio was
But with a serious supply shortage of which big players operate,” said an indus- after Vishwavir Ahuja went on a six- around 20 per cent,
n Plastic straws take up to 200 years
paper straws around the world, at least try source aware of the developments. He month leave (coinciding with the end of the highest in the
one leading player, Parle Agro, makers of to decompose, and they break into said FMCG players also tried to get the his tenure) in late December, protesting industry. The bank Traditionally, the regulator RBL Bank board,
the hot-selling Frooti and Appy, says that smaller plastics and can be Amul cooperative to convince the govern- the appointment of an additional director has been going slow doesn’t get into qualitative another board
the industry might have to close factory ingested in marine life ment for an extension. by the banking regulator and, of course, on asset growth, aspects of the candidates and member and an out-
operations if the deadline is not extended. n Paper straws decompose within Meanwhile, a debate has arisen on the RBI’s refusal to extend his tenure. focussing on risk- approval of the first name on sider — Pradip Shah,
“India has high demand, but none of the whether paper straws are really environ- Like the chief of another old private management and the list, recommended by the the first MD of rating
two to six weeks
suppliers in China and Southeast Asia ment-friendly. Experts agree that it is a bank, Ahuja, too, had got a one-year underwriting norms search committee, is automatic agency CRISIL Ltd and
have the capacity to supply us immedi- better option than plastic, but point out term, which was to end in June. While as well as granular unless the person is not found founder of IndAsia
ately. They will take three months and the even children. Banning plastic forks or that many paper straws in the market are the other banker got another three-year retail deposits and fit and proper Fund Advisors. It was
problem of containers not reaching will plates manufactured by the small-scale not compostable or recyclable. They also term after completion of one year, Ahuja paring its exposure to assisted by Egon
continue. If paper straw arrivals are sector does not create an equivalent require cutting trees to produce, and paper didn’t have the luck. Had he got a three- the unsecured microfinance loans. It has Zehnder, a global management consult-
delayed the plants may stop working,” degree of hype. products generate more greenhouse gases year term, he would have completed 15 also been investing in building systems, ing and executive search firm.
said Schauna Chauhan, Parle Agro man- But why are FMCG companies, which than plastic because they consume four years at the helm, the maximum permis- processes and the technology platform. I am sure the RBI had looked into cul-
aging director. were well aware of the government’s insis- times more energy to manufacture. sible by the regulator. While RBL Bank is not collapsing, the ture, competence, compatibility and com-
The public outcry against the plastic tence on this ban, so unprepared and fail- Yet, the stark reality is that plastic Why did the stock tank? Prima facie, surprise has been the choice of the CEO. pensation while choosing the CEO of RBL
straws ban is a global trend. Even in the ing to place sufficient import orders? And straws take up to 200 years to decompose, RBL Bank is not a stretcher case. Unlike I am not qualified to assess the relative Bank. Since Daruwala’s current package
US, plastic straws account for 0.025 per why are they looking at the last moment? and they break into smaller plastics Yes Bank Ltd, it’s not a victim of fraud. It’s merit of the two candidates shortlisted is quite handsome, the search committee
cent of the plastics that settle on ocean The industry has been divided. Many and can be ingested in marine life. In con- a story of limitless ambition for growth. by the search committee of the bank’s must have recommended liberal ESOPs
beds each year. But Lonely Whale, a multinationals, sensing that a programme trast, paper straws decompose within two Indeed, RBL Bank is the only entity, which board, but it’s a rare occasion when the for her. Had this gone against Daruwala?
+ seven-year-old activist group that cam- under Prime Minister Narendra Modi’s to six weeks. posted a loss in FY22 (~74.74 crore) — in a RBI picked up the second person from But ESOPs are earned. One needs to per-
paigns against plastics entering the ocean, leadership would not get extension, But it might be a while before paper year when the industry recorded its high- the list submitted to it for the top job and form to make money through ESOPs. Or,
has clarified that the plastic straw is not decided to place orders for paper straw straws come to India — manufacturers est ever net profit — but its financials are not the first. has her recent extension of term at
the sole focus of its activism. It wants to imports many months ago. So, they have worldwide will be able to deliver only 50 not to be frowned on. Traditionally, the regulator doesn’t get Standard Chartered Bank blocked her pas-
make people aware of “how single-use no problem with the transition. per cent of global paper straw demand, The bank’s gross non-performing into qualitative aspects of the candidates sage to RBL Bank?
plastics are prevalent in our lives, putting The Ministry of Environment, Forest which is rising as more and more coun- assets (NPAs) in FY22 rose marginally and approval of the first name is auto- While I am not qualified to pass any
up a mirror to hold us accountable”. and Climate Change notified the ban in tries and cities go for a ban. The CEO of from 4.34 per cent to 4.4 per cent. matic unless the person is not found fit judgement on the RBI’s choice, one thing
Banning plastic straws is a simple way of August 2021 under the Plastic Waste AARC, Praveen Aggarwal, estimates that However, after provision, net NPAs and proper. In this case, this cannot be is for sure: It smacks of the regulator’s lack
building awareness among consumers on Management Amendment Rules, giving only 25 per cent of the country’s demand dropped from 2.12 per cent to 1.34 per the reason as the first person on the list of confidence in the bank’s board. Or, is
plastic waste and pollution and also the all companies sufficient time for action. will be met by this year’s end. And for cent. Its provision coverage ratio in March — Zarin Daruwala, cluster chief executive there something else we aren’t aware of?
fact that it is a matter of choice and not But it was only in April 2022 that the those importing machines to make in was 70.4 per cent and capital adequacy officer, India and South Asia markets
necessity, since you don’t really need a Action Alliance for Recycling Beverage India, it is a one-year wait. But there is ratio 16.8 per cent; the liquidity coverage (Bangladesh, Nepal and Sri Lanka) of The writer, a consulting editor with Business
straw to drink juice. Cartons (AARC) decided to petition the some good news. An Indian packaging ratio was also far higher than the regu- Standard Chartered Bank — got a new Standard, is an author and senior adviser to
In India, too, plastic straws have all the government that there is no alternative to company is planning to set up a unit in latory requirement. three-year term from April. Jana Small Finance Bank Ltd
ingredients for an awareness campaign — integrated plastic straws. They argued that the country that will be able to meet the Despite the flight of a few bulk deposits Subramaniakumar started his banking His latest book: Pandemonium: The Great
big companies, both global and local, and there are problems when paper straws demand of paper straws by the peak sea- in December, when an RBI-appointed career with Punjab National Bank in 1980. Indian Banking Story
a large middle-class consumer base touch a cold surface (they become soggy) son. But until then, the only hope is if the director joined its board and Ahuja went He headed business transformation at the To read his previous columns, please log on to
that consumes these products, many of and asked for a 12-18-month extension to government chooses to heed the last- on leave, its deposit portfolio in FY22 rose large public sector bank for three years https://bankerstrust.in
which are targeted at younger peoples and find viable alternatives. minute lobbying by FMCG players. 8 per cent to cross ~79,000 crore; 35.3 per before becoming an executive director at Twitter: TamalBandyo
54.2
2019-20
SACHIN P MAMPATTA The labour force participation rate, persons who are too young or old to
or the proportion of the population work, per 100 persons who are of 2020-21 55.6 21.1 23.3
2020-21 53.8
The government’s which is either working or looking for working age. India had a peak
recently released work, also showed a rising trend, dependency ratio of over 81.5 in 0 20 40 60 80 100
Note: Data is for persons in both rural and urban areas Note: Data is for persons across India
Periodic Labour Force ending at 41.6 per cent in the latest 1966, according to data available
Survey (PLFS) 2020-2021 report. The share of government with the World Bank. This had
annual report paints an employment, which includes local dropped to 47.5 in 2017-18. The 5: DROP IN SHARE OF ECONOMICALLY 6: DROP IN MANUFACTURING EMPLOYMENT (share in %)
optimistic picture bodies and public sector enterprises, latest survey puts it at 44.3 (chart 5). DEPENDENT POPULATION n Agriculture n Mining and quarrying n Manufacturing n Electricity, water, etc. n Construction
of employment despite fell compared with 2017-18. The share A higher share of workers can n 2017-18 n 2020-21
pandemic-related uncertainties. of public and private limited help bring economic prosperity as
(dependency ratio) n Trade, hotel and restaurant n Transport, storage and communications n Other services
The survey was conducted between companies was up (chart 2). has happened in countries such as 50.2 0.4 0.6
47.0 47.5 2017-18 44.1
July 2020 and June 2021, which However, the share of people with China, which used its surplus 44.3 12.1 11.7 12.0 5.9 13.2
41.4
included the worst of the second wave. a regular wage or salary dropped to labour to fuel a manufacturing 38.3 0.4 0.6
Unemployment showed a declining the lowest of the four surveys so far, boom. But the share of 2018-19 42.5 12.1 12.1 12.6 5.9 13.8
trend despite Covid-19, according to to 21.1 per cent (chart 3). Regular manufacturing jobs in India has
the report. Overall unemployment was wage and salaried employees have been falling despite the 0.3 0.6
down from 6.1 per cent in 2017-18 to 4.2 seen an erosion of other benefits over demographic tailwind from 2019-20 45.6 11.2 11.6 13.2 5.6 11.9
per cent in 2020-21. The 2017-18 annual the years with the majority now 12.9 per cent in 2017-18 to 0.3 0.6
report was the first one for the PLFS. lacking access to any social security 10.9 per cent in 2020-21 (chart 6). 2020-21 46.5 10.9 12.1 12.2 5.4 12.0
Female unemployment fell from 5.7 benefit at all (chart 4). The share of agriculture went up Rural Urban Overall
per cent to 3.5 per cent during the The dependency ratio is the from 44.1 per cent to 46.5 per cent 0 20 40 60 80 100
Note: Dependency ratio is persons of age 0 to 14 years or 65 years and
same period (chart 1). number of economically dependent during the same period. above per 100 persons of age 15 to 64 years Note: Data is for persons in both rural and urban areas
StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines Source: Periodic Labour Force Survey (PLFS) Annual Report (2020-21)
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16
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NEW DELHI | MONDAY, 20 JUNE 2022 1
British Indian
Toy makers gain from Twins that changed how author pens
T
he dip in import of toys from ing. Neither spacecraft was expected to be functional ebrated English children's
China, thanks to changed rules for more than five years but it’s 44 years and counting. writer, more reflective of mod-
imposed by the government last They have sent back huge amounts of data, and breath- ern British life.
year, has come as a boon for domestic taking images, which revolutionised our understand- Sufiya Ahmed, originally
manufacturers. ing of gas giants, ice giants, dwarf planets, weird rings from Surat, recently released
According to industry sources, and moons. the second in a four-book
domestic toy manufacturers are seeing The mission idea sparked in 1965. A young aero- series commissioned by the
a sharp rise in sales during the current space engineer at Caltech, Gary Flandro made an inter- publishers behind Blyton
financial year. On January 1, 2021, India esting calculation. The outer planets — Jupiter, Saturn, bestsellers and has been
had banned the sale of toys that are not Uranus and Neptune — would be lined up in what buoyed by the enduring pop-
certified by the Bureau of Indian was almost a straight line in the late 1970s and early ularity of the characters.
Standards (BIS). This meant that all fac-
tories churning out toys to be sold in
PLAY ’80s. The planets travel in roughly egg-shaped (ellipti-
cal) orbits around the sun. But they have different velo-
While injecting some Sou-
th Asian flavour into “Five and
India had to be certified by the bureau ZONE cities and of course, they are at varying distances. This the Runaway Dog”, Ahmed
along with mandatory product testing, phenomenon, where these specific planets are in a feels her new adventures are
including for units abroad. n Decline in India’s toy imports n Chinese products made up roughly straight line, occurs only every 176 years or so. Voyager 1 carries a gold-plated disc (seen in the an ode to the much-loved
This has led to a 30 per cent decline by 30%, from $562.14 mn in 71% of overall imported toys in Flandro realised there could be an interesting payoff picture taken on August 4, 1977) with multilingual writings of the 20th century
in India’s toy imports — from $562.14 2019-20 to $392.92 mn in 2021-22 2020-21; it came down to 62% for exploration. If you launched a spacecraft towards content including songs and images children’s author. “These new
million in 2019-20 to $392.92 million in in 2021-22 and 61% in April 2022 Jupiter, and timed and aimed perfectly, it would benefit adventures of the Famous Five
2021-22. The rise in basic customs duties n Rise in basic customs duties from a slingshot effect. The gravitational pull of Jupiter Uranus’ name leads to crude jokes). Neptune is anoth- are more reflective of modern
on imported toys from 20 to 60 per cent from 20% to 60% has also led n BIS has granted about 800 would add to its speed, and push it out faster towards er ice-giant — deeper-blue. It also has a lot of moons times,” said Ahmed.
has also led to the decline in imports. to the import decline manufacturing licences, of Saturn. Similarly, Saturn would offer a gravitational and rings, and pink geysers. After the Neptune fly- “There are more diverse
Toy company Funskool India, n Because of new regulations, which over 90% are to MSMEs assist to speed the craft on to Uranus and Uranus would by, Voyager 2 turned off its camera to conserve power characters in Kirrin village,
which is majority owned by tyre-maker speed it on to Neptune. A 30-year journey to reach and headed “down”. which is the setting of the
imports from China fell 39% n Indian toy market growing
MRF, said that its sales have doubled Neptune could be cut to less than 12 years by boosts. The last images came in from Voyager 1 from a dis- Famous Five books, and in the
this April (peak season) compared to
from $402.27 mn in 2019-20 to at CAGR of 13% against This led to the Voyager Missions. Voyager 1 and 2 tance of 6 billion km, showing Venus, Earth, Mars, second story I’ve written, ‘Five
the last financial year. “We have seen $246.74 mn in 2021-22 global average of 5% were launched within 15 days of each other in August- Jupiter, Saturn, Uranus and Neptune in array. After and the Runaway Dog’, we
the sales double, while all the domestic September 1977. (Voyager 1 launched after Voyager 2 that both craft have sent radio data but no visual have Simi — a girl of South
players are seeing a rise in sales as markets for toys, which is expanding pany reportedly supplies to interna- but was named V1 because it would reach Jupiter first). images. In 2012, Voyager 1 left the Solar System, and Asian heritage — and her fam-
imports used to contribute around 80 at a compound annual growth rate of tional toy majors such as Hasbro, Spin They would reach Jupiter in March 1979 and July 1979, Voyager 2 left the Solar System in 2018. Since then, ily who have moved into the
per cent of the total market requirement around 13 per cent as against a global Master, Early Learning Centre, Flair and and Saturn in November 1980. After that, Voyager 1 they’ve been studying phenomena like cosmic rays, village,” she said.
earlier,” said R Jeswant, chief executive average of around 5 per cent. “Prior to Drumond Park Games. would travel “up” out of the Solar System while Voyager magnetic fields, interstellar and solar winds (charged The first book, “Timmy
officer of the Chennai-based Funskool. Covid-19, the size of the industry in The MSME industry, on the other 2 would fly by Uranus (January 86) and Neptune (Aug- particles flowing from stars are called wind). and the Treasure”, was relea-
According to data from the Ministry India was around $1.5 billion. Now, with hand, is of the opinion that rules should ust 1989) and then go “down”. “Up” and “down” is with Both craft work off plutonium reactors and the fuel sed in January and has been
of Commerce and Industry, Chinese imports down, that share is being taken be further fine-tuned to accommodate reference to the solar system’s orientation. The planets will eventually run out. Both connect via radio to making waves not just in the
products comprised 71 per cent of the over by domestic players replacing micro entrepreneurs. More than 90 per orbit in a plane called the ecliptic. Voyager 1 headed NASA’s Deep Space network. They are now around UK but also in Spain and Por-
overall imported toys in 2020-21. This China. Their sales have increased man- cent of the 6,000-odd toy manufactur- above the ecliptic, while Voyager 2 headed down. 20-21 light-hours away, which means radio commu- tugal. The third book in the
figure came down to 62 per cent during ifold and more start-ups and SMEs are ers in India are MSMEs, according to Both craft kept coming up with surprises. They nication takes twice as long. As the mission has pro- series, “Message in a Bottle”,
2021-22, and in the month of April 2022 coming to the sector,” said Ajay the TAI. discovered multiple new moons of all the planets, gressed, instruments have been progressively shut is undergoing the finishing
it stood at 61 per cent. Aggarwal, president of the Toy “The BIS has made a lab compulsory they found volcanic activity on moons, and they found down to conserve power. touches with illustrations and
Owing to the rise in demand, Association of India (TAI). for all units. Based on our request, a that Jupiter, Uranus and Neptune also had rings. They The on-board computers were state-of-the-art with proofreading, and Ahmed is
Funskool is set to expand its capacity Because of the regulations, imports one-year exemption was given for this found Saturn’s moon Titan had a thick atmosphere 69 kilobytes of memory, approximately one-millionth already working on book four.
in three factories — two in Ranipet, from China dipped by 39 per cent, from to micro players. We would like to seek and Jupiter’s Great Red Spot was a monstrous per- the capacity of a high-end smartphone. The data is All four books should be avail-
Tamil Nadu, and one in Goa. At Ranipet $402.27 million in 2019-20 to $246.74 an extension of two more years,” petual storm. They also discovered huge magnetic collected on tape recorders and sent back by a 23-watt able by May 2023, including
itself, the company plans to add a million in 2021-22. Aggarwal said. activity around Jupiter. transmitter — think of a refrigerator light. They have in India. “Enid Blyton is
70,000 square feet facility to its existing Jeswant added that as a result of the To attract more MSMEs to the sec- Voyager 2 found the ice-giant Uranus was full of 3.5-metre dish antennas to amplify signals. Voyager 1 Hachette Children’s Group’s
manufacturing location. new regulations, more international tor, the BIS had lined up a 50 per cent surprises. The coldest planet has a unique blue-green seems a little confused as to where it is at the moment, top-selling author in India, so
So far, the BIS has granted about brands are looking to either manufac- discount on the minimum marking fee, colour. It has at least 11 moons (six new ones), it has which has led optimists to hope it’s been hacked. It it’s very exciting to be part of
800 toy manufacturing licences, over ture in India or to outsource. Funskool which the bureau charges on each prod- rings; it has a weird magnetic field and it spins on its does carry a gold-plated disc with multilingual conte- that. I’m hoping to be invited
90 per cent of which are to micro, small has also witnessed a rise in exports of uct for inspection and certification, in side. (My minority view is that Uranus is the most nt including songs and images. Who knows, someday, to the Indian book festivals
and medium enterprises (MSMEs). products from its stable such as Giggles, addition to a 10 per cent rebate for old beautiful planet in the Solar System but most folks sometime, that might intrigue an intelligent alien if it with my Famous Five adven-
India is one of the fastest growing Fundough and Handycrafts. The com- licence holders. think Saturn wins the beauty contest and of course, does meet one and gets hacked. tures,” said Ahmed.
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