NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*
170
SENSEX NIFTY
39,131.04 11,662.60
234.33 74.25
mint
primer
Why is the rate of
failure of airlines
so high in India?
BY DHIRENDRA TRIPATHI
The Indian aviation sector has had a history of airlines going bust.
From East-West Airlines and Damania Airways in the 1990s to
Kingfisher Airlines and Jet Airways now, it’s a long list. As Indigo faces
turbulence, Mint analyses the reasons for the high failure rate:
Airlines that have shut shop
Some of the 1996
major carriers EAST-WEST
that have AIRLINES
closed down
MODILUFT
in India.
2009 2010
MDLR PARAMOUNT
AIRLINES AIRWAYS
Why is it tough to run
1 an airline business?
Airlines, the world over, are tough
to run. Barring some such as
Singapore Airlines and Lufthansa,
most find it difficult to charge a
premium, as customers, both
locals and foreigners, search for
the cheapest airfares. Glamorous
from the outside, it is a
commoditized business for most
players. For every empty seat on a
plane, an airline takes a hit on its
profitability, or what is called the
“yield”. There are very few
companies making planes in the
world and each aircraft costs
millions of dollars. The
government heavily regulates the
sector and with this comes the
high cost of operations.
4 Why is the cost
structure high?
Except the five private airports—
Delhi, Mumbai, Kochi, Bengaluru,
Hyderabad—most of the others are
run by the government-owned
Airports Authority of India (AAI).
Airlines pay several charges to
airport operators, both private and
AAI, besides separate charges for
landing, route navigation, parking,
terminal, fuel and royalty. Larger
and heavier a plane, higher are the
charges. Airlines have to send their
planes abroad due to lack of
maintenance, repair and overhaul
facilities in India, but get no input
credit for taxes paid abroad.
m MINT CURATOR
Duterte, who made rape jokes, outlaws catcalling
Andreo Calonzo
feedback@livemint.com
MANILA
P
hilippine President Rodrigo
Duterte, who has made contro-
versial remarks about rape and
women, approved a law penalizing sex-
ist remarks and catcalling.
The law imposing fines up to
500,000 pesos ($9,830) and four-year
jail time for sexual harassment in public
and on the Internet “does not apply” to
the president, his spokesperson Salva-
dor Panelo said on Tuesday.
WEDNESDAY, JULY 17, 2019
LIVEMINT.COM
DOLLAR EURO
₹`68.71 ₹77.09
₹0.16 ₹0.05
1997 2000
DAMANIA ARCHANA
AIRWAYS AIRWAYS
NEPC
AIRLINES
2012 2019
KINGFISHER JET
AIRLINES AIRWAYS
PARAS JAIN/MINT
How are airlines in
2 India faring?
Domestic passenger traffic rose by
18.6% year-on-year to 138.97
million in the January-December
2018 period. More people are
flying than ever before, but at the
same time, many airlines have also
shut shop. India’s second-largest
carrier, Jet Airways, is the most
recent casualty. This has led to a
rise in ticket prices. Airfares,
typically, are affordable only on a
few routes: Delhi-Mumbai, Delhi-
Bengaluru, Mumbai-Bengaluru
and Delhi-Hyderabad. This is
because of the demand-supply
mismatch, with airlines not being
able to offer more flights on these
routes as airports have not been
able to add capacity.
3 What is the Centre doing
to promote aviation?
The Centre’s UDAN scheme aims to
make flying affordable. The scheme
connects underserved and un-served
airports in India. The fares are capped,
with the Centre subsidizing airlines.
5 How are some norms
hurting the sector?
Till 2016, the government had a
self-defeating rule of 5/20, which
meant an airline had to operate for
five years in India and have 20
aircraft to be able to fly overseas.
This limited its ability to earn
more revenues. Airlines now need
to operate only 20 aircraft on local
routes to start flying abroad. The
Centre allows 100% FDI in airlines,
but has capped it at 49% if a
foreign carrier wants to invest in
an Indian firm. Aviation is a highly
capital-intensive business and FDI
curbs prevent it from acquiring
new technology and best practices.
AP
Duterte has a history of making
offensive remarks against women.
“When he cracks jokes, it is intended
to make people laugh, never to offend,”
Panelo said.
VOL. 13 NO.
GOLD OIL
₹34,583.00 $66.39
176.00 $0.09
QUICK EDIT
A green
race
Will electric cars soon be within
the reach of the average Indian
car buyer? Hyundai has
declared plans to invest ₹2,000
crore in India to roll out a
₹10-lakh electric car. Mahindra
is expected to launch a micro
SUV in the ₹8-9 lakh range next
year. Tata Motors’ electric ver-
sion of its forthcoming Altroz
hatchback could hit the streets
by 2020. Maruti Suzuki, Toyota
and Nissan also have their eyes
set on this emerging market. All
this suggests that a combina-
tion of policy incentives, mar-
ket dynamics and environmen-
tal imperatives will drive down
prices of green vehicles.
Automakers may have been
reluctant to give up on internal-
combustion engines, but they
do realise that the market could
transform over the next decade.
So far, electric cars have been
too expensive. Hyundai’s Kona
electric SUV is priced above ₹25
lakh. Once cheaper options
arrive, competition should spur
firms to invest in technology to
boost the performance of their
cars. Buyers will then be spoilt
for choice at attractive price-
points. The establishment of a
network of charging stations
could take care of the rest. For
now, EV makers need to match
fossil-fuel vehicles on the price-
performance equation.
MINT METRIC
by Bibek Debroy
The Volkswagen bug
Loses its spark plug.
An iconic brand
Can no longer grandstand
And has been swept under the rug.
QUOTE OF THE DAY
If you want good services, you
have to pay for it. Government
does not have money.
NITIN GADKARI
MINISTER OF ROAD
TRANSPORT AND
HIGHWAYS
The spokesperson added that
Duterte respects women and is never
lewd.
During his election campaign in
2016, Duterte made light of the rape
and murder of an Australian mission-
ary.
Last year, he told soldiers to shoot
female communist rebels in the vagina,
and, months later, kissed a Filipino
migrant worker in South Korea.
At the military academy in May,
Duterte said he would pardon all the
crimes of the graduating students,
including rape. BLOOMBERG
 BLOOMBERG
FLIP SIDE PRADEEP GAUR/MINT BLOOMBERG

Tech giants brace for

face-off with Congress
David McLaughlin & Ben Brody new businesses.
WASHINGTON While some barriers to competition are inherent in any
business, the key question for the antitrust committee is

U
S technology giants’ antitrust showdown with whether and how dominant tech platforms can intention-
Congress was their biggest in 20 years as lawmak- ally raise barriers to new entrants, said Michael Kades, the
ers and regulators sought to know whether compa- director of markets and competition policy at the Wash-
nies like Alphabet Inc.’s Google and Facebook Inc. use ington Center for Equitable Growth.
their dominance to squelch innovation. A report by the University of Chicago’s Stigler Center
Executives from Google, Facebook, Apple Inc. and this year found that digital markets tend to be winner-
Amazon.com Inc. appeared before the House antitrust take-all in which one firm comes to dominate. That cre-
panel, whose Democratic chairman is leading an investi- ates an incentive for the companies to edge out new chal-
gation into the market power of the biggest tech compa- lengers that could threaten that dominance.
nies and their effect on competition. Lack of competition can lead to reduced innovation,
The hearing harkens back to Microsoft Corp. which harms consumers over time, according to the
co-founder Bill Gates’ appearance before the Senate in report. “The evidence thus far does suggest that current
1998 when Microsoft was the target of government scru- digital platforms face very little threat of entry and are
tiny into its monopoly in computer operating systems. negatively impacting investment in key digital areas,” it
Two months later, the Justice Department filed a land- said.
mark antitrust lawsuit against Microsoft that reined in its One of the authors of the Chicago report—Yale Univer-
practices and nearly led to the company’s breakup. sity economist Fiona Scott Morton—testified.
“This is really a deep dive by the committee to under- The company executives who appeared are Adam
stand what’s going on in the tech sector, what needs to be Cohen, Google’s director of economic policy, Matt
done in terms of antitrust enforcement Perault, head of global policy develop-
but also to understand better whether Critics say big tech ment at Facebook, Amazon associate
there is a need for change in the law,” general counsel for competition Nate
said Gene Kimmelman, a senior adviser firms can use their Sutton, and Kyle Andeer, vice president
at policy group Public Knowledge, who power to thwart of corporate law at Apple.
served in the Justice Department’s anti- E-commerce trade association NetCh-
trust division under President Barack competition from oice, which includes Google and Face-
Obama. smaller rivals book, has a different story to tell the
While the executives testifying don’t committee: The reach of tech platforms
have the star power of Gates, their appearance marked the gives small businesses the opportunity to target large
first time the largest technology companies faced ques- audiences of potential customers through digital adver-
tions from lawmakers amid a rising chorus of criticism tising. Not long ago, their only choice was expensive
that they are violating antitrust laws. That was the same advertising in a local newspaper or television station, the
accusation levelled at Microsoft two decades ago. group said.
Rhode Island Democrat David Cicilline, who leads the “These platforms are helping small businesses the same
antitrust panel, is bearing down on technology companies way a large retailer operates as an anchor for a shopping
as antitrust enforcers prepare their own scrutiny of the center or mall,” said Carl Szabo, vice president of NetCh-
industry. oice. “The larger these platforms grow means the more
The Justice Department and the Federal Trade Com- customers small businesses can reach with better target-
mission, which share antitrust jurisdiction, have taken ing and lower costs.”
the first steps toward investigating conduct by the biggest Sarah Miller, deputy director of Open Markets Insti-
companies, with the Justice Department taking responsi- tute, which advocates for aggressive antitrust enforce-
bility for Google and Apple, and FTC overseeing Face- ment, countered that tech platforms are harming entre-
book and Amazon. preneurs.
One of the key complaints from critics of the big tech “These companies were the darlings of most Democrats
companies is that they can use their power to thwart com- and now the dynamic has changed profoundly,” she said.
petition from smaller rivals. “There is really a period of learning going on in Congress,
Academic research has shown a steady decline in busi- with staffers, with the broader public, around the varying
ness startups across the economy. ways that all of these tech companies, these tech monopo-
One possible explanation is that rising market concen- lies, are destructive.” BLOOMBERG
tration across industries effectively shuts out entry by feedback@livemint.com

AFTER-HOURS WITH THE BOSS

WHO Harkirat Singh
Managing director, Woodland
Harikat Singh, who took over responsibilities at Woodland at the age of 30, is passionate
about the art of making footwear. He has degrees in marketing from Harvard Business
School and philology from Moscow University. Singh joined Woodland full time after
completing his studies, overseeing exports to Europe and the US. He has played a major
role in the creation of the adventure footwear category at a time the Indian footwear
market was in flux. Here’s how the 48-year-old Singh unwinds outside his Delhi office:

EAT LOUNGE
Home-cooked Indian I like to read motivational books.
food is my all-time One book I really like is Angela
favourite. I absolutely Duckworth’s Grit: The Power of
relish Italian and Passion and Perseverance. Atlas
Mexican food, too. Shrugged by
During my overseas Ayn Rand is
travels, I like to try different another
cuisines as they speak volumes favourite.
about their cultural and regional influences. Outdoor
adventure
PLAY trips give me
I like running as it keeps me fit. However, I tend an adrenaline
to follow variations in my routine: a mix of yoga, rush.
running, cycling, high intensity interval training, —BIDYA SAPAM/
cardio, weight training, spinning and CrossFit. MINT

PEANUTS by Charles M. Schulz

 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 13 NO. 170 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR) 20 PAGES

PLAIN
FACTS
INDIA’S URBAN YOUTH CRAVE BORIS JOHNSON: AN
WEDNESDAY, JULY 17, 2019
LIVEMINT.COM
A NEW TYPE OF JOB uP2 UNSUITABLE BOY uP8

DON’T MISS
PRADEEP GAUR/MINT
IndiGo, in middle of a storm, Rally continues
Bond yields fell for a fifth
straight day on Tuesday to
6.33%—the lowest since
6 December 2016.

may fly with more directors 8.5

7.5
10-year bond yield (in %)

Proposal to increase board strength to a dozen from the current six will be taken up on Friday 6.5
6.33
6.20
6
m MINT GRAPHITI 6 Dec 2016 16 Jul 2019
Rhik Kundu THE PARTNERSHIP
rhik.k@livemint.com CLOUD OVER INDIGO Gangwal, a former CEO and
chairman of US Airways Group,
Source: Bloomberg
SARVESH KUMAR SHARMA/MINT
MUMBAI
Retail auto sales remain in the Differences between IndiGo co-founders Rahul Bhatia and Rakesh Gangwal have founded IndiGo when he joined
Rate cut hopes

T
slow lane in June, decline 5.4% taken a turn for the worse, leaving India’s largest airline facing severe turbulence, hands with Rahul Bhatia in 2004.
he board of InterGlobe Avia-
with the markets regulator and the ministry of corporate affairs stepping in.
Retail sales of automobiles fell 5.4% in tion Ltd, which runs IndiGo,
June as consumer sentiment remained Amazon
workers
India’s largest airline, will see bond yields
subdued because of the slowdown in the consider a proposal to THE FALLING OUT THE COUNTER
economy and tightening of credit norms
by banks. See Page 5
strike as
‘Prime’
shopping
induct new directors at its
board meeting slated for Friday, said
I am here for the long
haul. I have no desire
Earlier this month, Gangwal sought
the market regulator’s intervention
Bhatia denied Gangwal’s charges and
accused him of trying to dilute the
diving to lowest
frenzy hits two people with direct knowledge of
the matter.
to sell my stake or to curb alleged corporate
governance violations at IndiGo.
controlling rights of his holding
company.
since Dec 2016
Wind turbine maker Suzlon fails to
bit.ly/30AQuY raise it... I’m focusing
0 A proposal will be placed before the
meet bond payments of $172 mn board to grow its strength to probably
on governance issues Ravindra Sonavane
Troubled wind turbine maker Suzlon a dozen directors from the current six that have gone awry. THE REGULATORY ROLE THE PATH AHEAD ravindra.s@livemint.com
Energy Ltd on Tuesday said it has failed when it meets to approve IndiGo’s I’m not seeking Sebi has asked the airline to respond IndiGo’s board, which will meet on MUMBAI
to make a payment of principal amount quarterly results, the people cited any additional by 19 July to Gangwal’s charges. The Friday to consider quarterly

Y
of $172 million for outstanding bonds, above said on condition of anonymity. corporate affairs ministry has also earnings, will take up a proposal to ields on government
control written to the firm seeking a response. induct new directors.
due in July. See Page 6 The plan to add more directors fol- bonds fell sharply on
RAKESH GANGWAL,
lows allegations of corporate govern- Tuesday to a level last
co-founder, IndiGo
ance violations against co-founder seen after the shock ban on
Work on ₹14,000 cr coastal road Rahul Bhatia by his estranged partner, high-value currency notes in
project stopped by Bombay HC Rakesh Gangwal. The proposed board SARVESH KUMAR SHARMA/MINT November 2016, buoyed by
The court directed the Municipal expansion has been a contentious issue the prospect that the central
Corporation of Greater Mumbai to stop between the two promoters. drawing from participating in aircraft bank will effect deeper rate
work till fresh environment clearances
are obtained after an environmental
According to a 30 January letter and related acquisition activities of the
written by Rahul Bhatia and his wife company,” according to the letter. Respond to Gangwal’s charges cuts to bolster growth amid
low inflation.
impact assessment. See Page 18 Rohini to the company’s board, Gang- Sebi norms require at least one The yield on the benchmark
wal has asked on several occasions for woman independent director in the
the board to be expanded. “Mr. Bhatia top 500 listed entities by market capi-
in 3 weeks: MCA to InterGlobe 10-year bond declined 10 basis
points to 6.33% on Tuesday, a
L&T CEO Subrahmanyan, two agreed to an expansion so long as the talization by 1 April 2019 and in the top level last seen on 6 December
others join Mindtree’s board IGE Group’s representation on the 1000 listed entities by 1 April 2020. Gireesh Chandra Prasad with the Companies Act. If not, the 2016. Year to date, the bond
Engineering giant Larsen and Toubro board is maintained Further, at least 50% gireesh.p@livemint.com shareholder agreement will yield has fallen nearly 100
Ltd is set to complete its acquisition of at the proportion of the board should NEW DELHI become void. “You cannot circum- basis points. Bond yields and
Mindtree Ltd, with the induction of its mentioned in the m INDIGO BLUES comprise independ- vent the law with an agreement. prices move in opposite direc-

T
CEO and two other nominees on the IT shareholders’ agree- ent directors. he ministry of corporate The company has been asked to tions.
firm’s board. See Page 6 ment (SHA) and the “Bhatia has pro- affairs (MCA) has written to give its comments. The government India’s core inflation eased
articles of association of the company posed that the board could be doubled InterGlobe Aviation Ltd to gives companies 2-3 weeks to to 4.1%, its slowest in nearly
(AoA),” the letter said. to 12 members, with each promoter respond to all the charges of corpo- respond in such cases,” the person two years, down from 4.23% in
Bhatia heads InterGlobe Enterprises group maintaining its inter se nomina- rate governance lapses raised by its said on condition of anonymity. May, according to government
Pvt. Ltd or IGE, one of IndiGo’s pro- tion rights and let there be four inde- co-founder Rakesh Gangwal, said a The feud between the two data on Friday. Retail inflation
moter entities. He owns about a 38% pendent directors,” said the first of the person privy to the development. founders of India’s largest airline for June was at 3.18%, holding
stake in InterGlobe, while Gangwal two people cited earlier. The ministry is also looking into could potentially impede IndiGo’s below Reserve

TikTok parent eyeing holds about 37%. IndiGo didn’t respond to Mint’s que-
“Mr Gangwal, being unhappy with ries till press time. Gangwal also did
IGE Group’s position on the expansion
whether the shareholder agree-
ment between Gangwal and
co-founder Rahul Bhatia is in line
plan to take advantage of the

TURN TO PAGE 5
Bank of India’s
(RBI) 4% target
for the 11th

content startup deals of the board, reacted by abruptly with- TURN TO PAGE 5 straight month.
This, juxtaposed
with India’s May factory out-
put weakening to 3.1% from
in big push into India 3.4% in April, has kindled
hopes of continued monetary

Varsha Bansal Nikhil Singh, has joined Byte-

varsha.b@livemint.com Dance’s overseas investment
BENGALURU team. His role is described as
“executing the China play-
BS VI petrol, diesel may pinch more on higher refining costs easing and further rate cuts.
The next meeting of RBI’s
monetary policy committee
will be held from 6-7 August.
Kalpana Pathak & return on our investments. for producing cleaner fuels. The other reason is the gov-
Amit Panday This is only logical. The “Pricing for petrol and die- ernment’s plan to raise part of

B
ytedance Ltd, which book + looking at inorganic thought process is to recover sel would be different and it its borrowing from overseas
owns the popular Tik- growth opportunities/invest- MUMBAI cost and not profit-making,” will be averaged out according markets. The move is expected
Tok video-sharing app, ments in India”. one of the two officials cited to what each company has to reduce supply of bonds in

C
will invest in Indian content Founded in 2012, Byte- ustomers may have to earlier said on condition of invested,” the second official the domestic market, which
startups to create a bouquet of Dance entered India in Sep- shell out more for pet- anonymity. said. “The pricing will also have an impact on pri-
apps to target new audiences, tember 2017 through its live- rol and diesel from “The price The price rise may would be decided ces.
borrowing from its successful streaming app Vigo Video. April as fuel retailers are look- increase could be be between a few closer to the In addition, the govern-
China playbook, two people However, last August, it took ing to pass on the higher cost a n y w h e r e paise and ₹2, launch and dis- ment’s lower fiscal deficit tar-
familiar with the plans said. the Indian social media market of producing Bharat Stage between a few which is likely to cussions are on to get—3.3% from 3.4% envis-
ByteDance, the world’s by storm with the launch of VI-compliant fuel, said two paise to a maxi- suggest to the aged in the interim budget—
be charged as a
most valuable startup, has set TikTok. Around the same senior officials at the compa- mum of ₹2, which government that has boosted investor
up a team to scout for compa- time, ByteDance launched nies. is likely to be special cess we have made sentiment.
nies in content, social com- local language social media This would help the state- Fuel retailers are looking to pass on the higher cost of producing charged in the or duty such huge invest- Economists expect offshore
merce and education technol- app Helo, a ShareChat clone. run fuel retailers recoup their BS VI-compliant fuel to customers. RAMESH PATHANIA/MINT form of a special ments and would borrowing to reduce pressure
ogy, they said, requesting ano- Industry experts said invest- investments in upgrading cess or duty,” said like them to find a on domestic interest rates.
nymity. ing in other start- their refineries to produce the approval. The refiners are esti- norms, the equivalent of Euro the second official. The Auto method for us to recover the Falling bond yields globally,
The move ups might give cleaner fuel, the officials said, mated to have spent more than VI, from 1 April. Fuel Vision and Policy 2025 in same.” amid expectations of the US
comes at a time ByteDance access requesting anonymity. They ₹30,000 crore to improve “We have made large June 2014 had recommended Another increase in auto Federal Reserve adopting a
when several to exclusive con- said a final decision would be their facilities, with India set to investments in upgrading to a 75 paise cess to recoup addi-
Chinese funds are tent. “This strat- subject to government implement BS VI emission BS VI and we need to get a tional investments projected TURN TO PAGE 16 TURN TO PAGE 7
turning their egy might help
attention to start- ByteDance plans ByteDance build
ups in India, as its to replicate its a long tail of con-
domestic con- China playbook in tent, which can
sumer internet India by creating a lead to potentially
market slowly
hits saturation.
ByteDance
bouquet of apps higher retention
in the longer term
as users coming
BEST YET TO COME, SAYS PREMJI AT LAST AGM AS WIPRO CHIEF
invested $25 million in local initially for fun videos/content
language Indian news aggre- can then get engaged with Dhirendra Tripathi & PTI 73rd annual general meeting change, we have sharpened ethics, and attention to detail,
gator DailyHunt in 2016. other content forms, which are NEW DELHI/BENGALURU was sombre. Known for being our strategy into four pillars transformed Western India
“They (ByteDance) have more utilitarian in nature,” frugal in his spending and aus- based on what our clients need Vegetable Products Ltd into

A
been toying with this for a said Himanshu Gupta, a zim Hasham Premji tere in his lifestyle, Premji —business re-imagination, Wipro, now India’s fourth
while and have had a lot of former WeChat India execu- and Wipro Ltd—both went about the day’s proceed- engineering transformation largest software services firm.
people come from China to tive, who has an understand- born in 1945—bid a ings clinically, asking Wipro’s and modernization, con- Premji stands tall in India’s
meet Indian startups,” said the ing of the Chinese ecosystem farewell of sorts to each other company secretary, M. San- nected intelli- short list of phi-
first person. “It has an ecosys- in India. “As far as social com- on Tuesday. aulla Khan, or “Sana” as he gence and trust,” The mood at lanthropists. In a
tem in China, and they want to merce is concerned, I think it’s The man who turned Wipro calls him, if the meeting had he said. Wipro’s 73rd country where
create something similar in the right way to monetize from a little-known producer the requisite quorum. Sana “In order to AGM was sombre. giving is for oth-
India—an ecosystem of differ- India-2, India-3 audiences of edible oils with just $2 mil- replied in the affirmative. build the capabil- But Premji ers to do, the total
ent content platforms.” since the yields on advertising lion in sales in 1966 to over He told the company’s ities that are value of funds
went about the
ByteDance did not respond for these users are likely to be $8.5 billion in sales in the year shareholders that son Rishad needed to deliver committed by the
to emailed queries till press very low and content-led com- ended 31 March, attended the Premji, chief strategy officer Azim Premji’s principled approach towards norms and ethics, these strategies, proceedings P a d m a
time. However, according to merce is a big opportunity.” last annual meeting of the and member of the board, and attention to detail, transformed Western India Vegetable we have been clinically Vibhushan awar-
professional networking site In China, ByteDance runs company as executive chair- would take over as executive Products into Wipro, one of India’s top software exporters. MINT investing signifi- dee to philan-
LinkedIn, a former Matrix an ecosystem of at least 7-8 man on Tuesday after steering chairman from 31 July. cantly in four thropic activities
Partners venture capitalist, content apps. it for more than half a century. “He (Rishad) has been an egy, its culture and its heritage. Premji expressed confi- areas—digital, cloud, engi- is a staggering ₹1.45 trillion
He will devote his time to phil- integral part of the leadership He is also completely commit- dence that Wipro will be able neering services and cyber ($21 billion). This includes a
NOTE TO Mint Brand Cell content is created in anthropic activities after he team since 2007, and has a ted to the values, which form to far outshine anything that security,” he added. 67% economic ownership of
READERS collaboration with our associates retires on 30 July. deep understanding of the the bedrock of Wipro,” Premji has been done before. Premji’s principled and Wipro.
The mood at the company’s company, its business strat- said. “To lead in this time of rapid unwavering approach towards dhirendra.t@livemint.com
02 WEDNESDAY, 17 JULY 2019
NEW DELHI PLAIN FACTS

India’s urban youth crave a new type of job

Urban millennials are looking for better jobs and would be happy to consider freelance work as an alternative to their current job, shows survey data
Nikita Kwatra m MINT GRAPHITI
However, youth employed Chart 1
Chart 2 Chart 3a
nikita.k@livemint.com in the arts and entertainment Majority of India's working youth thinks Youth employed in full-time jobs are most willing to The younger age cohorts are more
MUMBAI industry, the financial services freelance work could be a viable alternative take up freelance work in the future frequent job switchers
industry and the engineering to full-time employment % of India's youth, by employment status, who ‘somewhat’ or % of India's working youth*, by age group, who

T
he gig economy is sector are particularly keen for % of India's working youth*, by age group, who ‘somewhat’ or ‘completely’ agree that... have held these many jobs in the past five years
on the rise in India freelance work, the survey ‘completely’ agree that... Freelance work is a I am willing to consider taking on freelance Millennials and Gen Zers Gen Xers and older
and many young shows. viable alternative to work as an alternative to full-time
Indians are welcom- High-earners (earning Freelance work is a They are willing to consider taking on full-time employment employment in the future
ing it. Across cities, a more than ₹20,000 a month) viable alternative to freelance work as an alternative to
full-time employment full-time employment in the future Student Fresher Working Working Currently
vast majority of India’s work- are slightly more inclined
ing millennials are willing to toward freelance work (86% looking for full-time part-time unemployed 58.2
84 a new job (at least 40 (less than 40 but have worked
give up their full-time jobs to said they would take up free- Gen Z hours a week) hours a week) in the past 52.1
take up freelance work, lance work) compared to low- 81
41.1
Younger 81 71.7 75.2 82.8 83.7
according to survey data col- income (less than ₹20,000) millennials 65.8 62.6 78.2 80.6 81.1 31.2
81 75.7
lected by market researcher earners (80%). Similarly, those Older
YouGov in collaboration with who are unmarried are more 82
millennials 10.6
86
Mint. willing to take up freelance Gen X and 81
Data from the second round work than those who are mar- older 83 6.8
of the YouGov-Mint Millen- ried.
nial Survey conducted in This data suggests that *those who work part-time or full-time. Younger millennials refer to those born between 1990 and
0 or 1 2 to 3 4 or more
January and February earlier Indian youth crave the inde- 1996, i.e., those aged 23 to 29 in 2019. Older millennials are those born between 1981 and 1989 or aged The above analysis is based only on the responses of millennials and Gen Zers, i.e., those aged 38 or *Includes those who are employed full-time and
30 to 38 in 2019. The younger generation, born after 1996, is referred to as ‘generation Z’ or Gen Zers, less in 2019. The sub sample consists of 3,635 respondents. The analysis does not include housewives part-time. The sub sample consists of 2,788 respondents.
this year shows that more than pendence that freelance work while the older generation born between 1965 and 1980 is referred to as ‘generation X’ or Gen Xers. and those who have retired.
80% of working adults believe offers and corroborates find-
Chart 4
that freelance work is a viable ings from the first round of Chart 3b
alternative to the YouGov- Men are more willing to take up freelance work compared with women
Those who switch jobs more frequently % of India's urban youth, by gender, who say they will consider taking up freelance work as an alternative
full-time Mint survey, are also more willing to take up freelance to full-time employment
employment conducted last work in place of a full-time job Female Male
and they would year which had
consider taking
up freelance
PLAIN shown that a
large proportion
% of India's working youth*, by number of jobs held in the past
five years, who say they are willing to take up freelance work as
Freelance work is a
viable alternative to
I am willing to consider taking on
freelance work as an alternative to
work in the
future.
FACTS of Indian youth
wanted to start
an alternative to full-time employment full-time employment
78.1
full-time employment in the future
77.5
Among the their own busi-
5,038 online respondents nesses rather than look for 87.1 63.4 64.4
from 180 cities in the YouGov- formal employment 85
Mint survey, 2,709 were mil- (bit.ly/2LSY9sC). 78.3
lennials (defined as those born The biggest variation in atti-
between 1981 and 1996), 1,188 tudes towards freelance work
were from the Gen-Z (born comes from employment sta-
after 1996) and the rest 1,141 tus. Surprisingly, it is those 0 or 1 2 to 3 4 or more
belonged to the older Gen-X who are employed in full-time
*Includes those who are employed full-time and part-time. The analysis is based on
(born before 1981). Given the jobs—rather than those who the responses of millennials (aged 23-38) and Gen-Zers (aged 18-22) only. The sub
rise of the millennial popula- are unemployed or looking for sample consists of 1,978 respondents.

tion in India, understanding
their views are important for
both businesses and govern-
ment. And given India’s ongo-
ing job challenge, their views
on the type of jobs they desire
is particularly pertinent (see
chart 1).
The desire for freelance
work cuts across workers in
different sectors.
a new job—who are more will-
ing to consider freelancing
over regular employment (see
chart 2).
One reason for this could be
the dissatisfaction among
today’s youth with their exist-
ing jobs: a finding that has
repeatedly emerged in previ-
ous rounds of the You-Gov
Mint survey (bit.ly/2USaP8o).
Source: YouGov-Mint Millennial survey (Jan-Feb 2019) The above analysis is based only on the responses of millennials and Gen Zers,
i.e., those aged 38 or less in 2019. The sub sample consists of 3,897 respondents
GRAPHIC BY AHMED RAZA KHAN/MINT
This dissatisfaction seems to And, unsurprisingly, those because of the control and youth, it is the men rather than large section of the Indian the population.
be fuelling greater churn in who change jobs regularly are flexibility in working hours it the women who are more will- youth, a secure job is the pri- But for another important
terms of jobs among the youth. the ones more willing to try can offer. ing to consider taking up free- mary demand and need. section of Indian youth, it’s the
Younger millennials are freelance work (see charts 3a Global surveys have shown lance work over a regular job According to the latest peri- quality of the job that is the
changing jobs more frequently and 3b). that freelance work is a partic- (see chart 4). odic labour force survey, the issue. They are aspiring for
compared to their peers in Across the world, freelance ularly popular option among Taken together, these unemployment rate among 15- more in terms of the nature of
older age cohorts, the data work is attractive for many dis- women. This is not the case in results reveal a dual challenge to 29-year-olds was 18% in work, pay and an easier work-
suggests. satisfied millennial workers India. Among India’s urban in India’s job market. For a 2017-18, compared to 6% for life balance.

m CRICKET DASHBOARD Indian democracy’s power-sharing problem

MEN’S TEAM RANKINGS Sneha Alexander sharing among the different
TEST ODI T20 sneha.a@livemint.com groups, though, has not hap-
# Team Rating # Team Rating # Team Rating
MUMBAI pened in India, suggests a study
by Katharine Adeney and Wil-

I
ndia’s enduring democracy, fried Swenden.
1. INDIA 113 1. ENGLAND 123 1. PAKISTAN 283
despite entrenched social To show this, the authors
2. NEW ZEALAND 111 2. INDIA 123 2. ENGLAND 266 fault-lines based analyse different
on caste, class, and m political and admin-
3. SOUTH AFRICA 108 3. NEW ZEALAND 113 3. SOUTH AFRICA 262
religion, has fasci- istrative institutions
4. ENGLAND 105 4. AUSTRALIA 112 4. AUSTRALIA 261 nated social scien- SNAP FACT in India. They find Minorities remain under-represented in key institutions across
tists from across the that, though other India, suggests a new study. PTI
5. AUSTRALIA 98 5. SOUTH AFRICA 110 5. INDIA 260 world. One common explana- backward classes (OBCs) have
6. SRI LANKA 94 6. PAKISTAN 97 6. NEW ZEALAND 254 tion for the survival of democ- slightly increased their repre- Similar biases exist in the power-sharing in Indian
racy in countries with divided sentation in cabinets, the Lok case of administration and judi- democracy and further erode
7. PAKISTAN 84 7. BANGLADESH 90 7. AFGHANISTAN 241 societies is that institutional Sabha and senior political offi- cial appointments, they sug- the stance towards minorities.
8. WEST INDIES 82 8. SRI LANKA 79 8. SRI LANKA 227 power, either through the ces, other religious and caste gest. They also find that this They argue for the need for
executive, judiciary and legisla- minorities are underrepre- underrepresentation is present constitutional and legal provi-
9. BANGLADESH 65 9. WEST INDIES 77 9. WEST INDIES 226 ture or through informal chan- sented. under both the Congress and sions of power-sharing to pro-
10. ZIMBABWE 16 10. AFGHANISTAN 59 10. BANGLADESH 220 nels, is shared among different These minorities are allotted the Bharatiya Janata Party tect minority rights.
groups. the less important portfolios (BJP) regimes. However, the Also read: Power Sharing in
MEN’S BATTING RANKINGS This explanation, formally and also wield less power authors note that Muslim rep- the World’s Largest Democracy:
defined as “consociationalism” within the party structure. Cer- resentation has further weak- Informal Consociationalism in
TEST ODI T20 by political scientists, also sug- tain constituencies are ened under the BJP. India (and Its Decline?)
# Player Rating # Player Rating Player
gests that groups are granted reserved for scheduled castes More generally, they argue (bit.ly/2G6Ebut)
# Rating
some form of autonomy—such and scheduled tribes, but their that the rise of majoritarianism Snap Fact features new and
as cultural, economical or terri- representation often does not and a Hindu nationalistic party interesting reads from the world
1 Virat Kohli 922 1 Virat Kohli 886 1 Babar Azam 896
IND IND PAK torial autonomy. This power- extend beyond the Lok Sabha. in recent years may weaken of research

2. Kane Williamson 913 2. Rohit Sharma 881 2. Colin Munro 825

NZ IND NZ
3. Cheteshwar Pujara 881 3. Babar Azam 827 3. Glenn Maxwell 815
IND PAK AUS
4. Steve Smith 857 4. Francois du Plessis 820 4. Aaron Finch 782
m NEWS IN NUMBERS CORRECTIONS AND
AUS SA AUS CLARIFICATIONS
AFP

5. Henry Nicholls 778 5. Ross Taylor 817 5. Lokesh Rahul 726 93 million 3 Mint welcomes comments,
NZ NZ IND What is it? The quantity (in litres) of What is it? The suggestions or complaints
imported Chinese used cooking oil (UCO) number of times about errors.
MEN’S BOWLING RANKINGS that went into producing biodiesel in UK. Tiger Woods has
Readers can alert the
TEST ODI T20 Why is it important? UCO is categorized won The Open
newsroom to any errors in the
as a waste product in EU and earns double Championship, paper by emailing us, with your
# Player Rating # Player Rating # Player Rating carbon credits for biodiesel producers in the world’s oldest full name and address to
the UK and other European countries. golf tournament in feedback@livemint.com.
1 Pat Cummins 878 1 Jasprit Bumrah 809 1 Rashid Khan 780 However, a study by bio-economy existence.
AUS IND AFG consultants NNFCC suggests China might Why is it It is our policy to promptly
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ENG NZ PAK importing more virgin palm oil for tournament in 2000, 2005 and 2006. He response or concerned about
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 DEALS WEDNESDAY, 17 JULY 2019
NEW DELHI 03

REVERSE PITCH
Reverse Pitch is like a normal investors pitch, but
US hedge fund Steadview to step
with the roles reversed. That means the startup
doesn’t present its business to investors but investors
and companies pitch their business concepts,
challenges and the like to startups.
up investments in Indian startups
“The cost of allowing
a matter to go to Fund plans to invest $500 million in growth-stage consumer internet startups over the next two years
court can be massive M. Sriram m MINT GRAPHITI
ketplace Quikr, among others, according to
for a brand” sriram.m@livemint.com Steady flow data from Tracxn Technologies.
MUMBAI Steadview did not make any fresh invest-
After exiting Flipkart in 2018 following its sale to Walmart, Steadview made six fresh
ANIRUDH DAMANI investments in India totaling about $200 million, besides investing $74 million more in Ola. ments beginning November 2015 till

A
Managing partner, merican hedge fund Steadview August 2018, when it backed Lenskart. Dur-
Artha Venture Fund Company/other investors Date Round size ($ mn)
Capital plans to invest $500 ing the period, it barely invested even in its
Elon Musk’s Unacademy
million in growth-stage com- SAIF Partners, Nexus, Blume Ventures
Jun 2019 50 existing portfolio’s follow-on rounds, back-
Tesla
revamps
panies in India over the next Ninjacart
ing only Urban Ladder.

I
ndia’s gross domestic product (GDP) has dou- prices in two years, two people aware of Tiger Global
Jun 2019 100 Back in action now, Steadview has ear-
bled in the past decade to $2.7 trillion. This, sales push its strategy said. Dream11 marked a significant amount of capital for
accompanied by the quadrupling of consumer The fund is looking to invest $20-40 mil- (None)
Apr 2019 100 Indian startups. Its investments here are
bit.ly/2NVfBmB
spending, thanks to goods and services tax (GST), lion per deal, the people said on condition UrbanClap
Nov 2018
currently overseen by Ravi Mehta, Stead-
Vy Capital 50
increased internet penetration and low inflation, of anonymity. view India’s Hong Kong-based managing
has led to a huge surge in the number of consumer The hedge fund, which has previously IndWealth Oct 2018 director since 2009.
(None) 30
brands and services that are cashing in. invested in unicorns, such as Flipkart and “With its plans to increase focus on India,
Ola Cabs
Subsequently, this has caused a sharp rise in Ola, is looking at consumer internet start- HBM Partners, Lyon Asset Management
Jan 2019 111 Steadview is also planning to increase its
consumer angst, which can be seen in the form of ups in vertical e-commerce, content and Lenskart
headcount here and is looking to hire one
complaints on social media platforms and meas- fintech. Aug 2018 Undisclosed more person in India,” the first person
TR Capital
ured by tracking search data on Google and other “Steadview could invest up to $100 mil- added.
PARAS JAIN/MINT
online platforms. lion in a single firm if the company’s finan- Mehta did not respond to an email seek-
In India, there is a separate court to address cial metrics justify heavy capital,” the first anClap, and INDWealth, a wealth manage- Capital. ing comment.
such grievances—the National Consumer Dis- person cited above said. ment platform started by former Ibibo Steadview first invested in India in July Mint reported on 7 July that growth-
putes Redressal Commission. With 91.02% cases The hedge fund went slow on India founder Ashish Kashyap. 2014, joining a $21 million round in online stage investments in Indian startups set a
resolved so far, it has one of the highest resolution investments between 2015 and 2018, and It has also been one of the few investors furniture retailer Urban Ladder. record by breaching the billion-dollar mark
rates in India. exited Flipkart in 2018 in the latter’s sale to actively entering companies by in the first half of this year, as
A service to resolve consumer complaints by Walmart Inc. buying secondary stakes of BACK IN ACTION new investors doubled down on
sending out legal notices to consumer brands on Since then, Steadview has made six new existing investors, which is how Series B and C rounds, gener-
behalf of customers could be a massive business investments totaling about $200 million, it invested in Lenskart last year, STEADVIEW did DURING the period, BACK in action now, ally considered the growth
opportunity. This startup will verify the genuine- besides investing $74 million more in Ola and in fantasy gaming platform not make any fresh
investments from
it barely invested
even in its existing
Steadview has set
aside a significant
stage for startups.
ness of the complaints and resolve them in vari- Cabs. Dream11 in April this year. November 2015 till portfolio’s follow-on amount of capital for “Hedge funds seem to have
ous ways (either through creative social cam- This year, Steadview has bet on business- Steadview was among a hand- August 2018 rounds Indian startups returned to active investing
paigns or legal assistance). It could also double up to-business agriculture-marketing plat- ful of hedge fund investors that because they have had a good
as the mediator between the brand and con- form Ninjacart, online education startup invested heavily in Indian start- experience and their portfolio
sumer, and try to keep the dispute out of court. Unacademy and online fantasy gaming ups between 2014 and 2015, when India’s Since then until November 2015, it par- companies have grown well,” said Anand
The cost of allowing a matter to go to court can platform Dream11, where its investment first unicorns were being created. ticipated in 12 rounds in half a dozen firms, Lunia, Partner at India Quotient, an early
be massive for a consumer brand. Judgments catapulted the startup to unicorn status. Hedge fund contemporaries that including Flipkart, Ola, online insurance stage investor. “We are witnessing a dou-
against brands also generate negative publicity, Last year, it invested in eyewear retail invested during that period include Fal- marketplace Policybazaar, music streaming bling down, fuelling the market grab strat-
therefore, in most companies, legal notices sur- startup Lenskart, home services firm Urb- con Edge, Valiant Capital and Tybourne platform Saavn and online classifieds mar- egy by leading startups.”
pass the customer service department, acting as a
trigger to resolve disputes, especially when the
company is at fault.
The startup can make money by charging a fixed
fee, or take a percentage of the funds received
from the dispute.
One thing it will not have to worry about is
growth, as consumer spending is set to grow
Oyo Hotels acquires Innov8, expands co-working space business
faster than GDP for next several years!
Deepti Chaudhary around $30 million, accord- statement. and Workflo has set up four vide a differentiated investment in core compe-
deepti.c@livemint.com ing to a TechCrunch report. Of these, Innov8 is cur- centres across NCR, Hydera- experience for co-workers at tencies that have helped us
BENGALURU Charting out its multi- rently spread across six cit- bad and Bengaluru with a different price points and scale so fast in the hospitality,
brand approach to the work- ies—Delhi, hosting capacity help expand access to housing rental and banquet

O
YO Hotels and spaces opportunity in India, Noida, Guru- The acquisition of of over 1,500 co-working spaces to more services business, we believe
Homes, the world’s Oyo introduced three gram, Bengaluru, Innov8 highlights seats in total and more businesses and pro- we are uniquely placed to cre-
third-largest chain of co-working brands under Oyo Chandigarh and Oyo’s increased already. fessionals across the country,” ate a strong offering for the

MyMoneyMantra hotels, homes, managed liv-

ing and workspaces, on Tues-
day confirmed its acquisition
of Innov8, a co-working spa-
Workspaces: Innov8, Power-
station and Workflo for upper
mid-scale, mid-scale and
Mumbai, with 16
centres hosting
over 6,000
focus on the
fast-growing
“The work-
place as a service
space presents
Rohit Kapoor, chief executive
officer, new real estate busi-
nesses, Oyo, said in a state-
corporates looking for space
as a service,” said Kapoor.
Oyo’s entry into the work-
economy segments, respec- employees of co-working space a n exciting ment. spaces business comes at a

raises ₹104 crore ces provider, highlighting the

company’s increasing focus
on the fast-growing segment.
tively.
OYO Workspaces is set to
open the door to its more than
brands like
Swiggy, Paytm,
Pepsi, Nykaa,
segment opportunity for
Oyo to utilize its
existing technol-
Oyo pegs co-working spa-
ces to be a $20 billion busi-
ness opportunity in India by
time when India is already
seeing the emergence of sev-
eral large companies in this

from Vaalon Cap While Oyo did not disclose

financial details of the Innov8
acquisition, it is pegged to be
21 workspaces, with over
15,000 seats across more than
10 cities in India, it said in a
OLX and Lenskart. Powersta- ogy and operational expert-
tion has one centre in Guru- ise. Through a targeted multi-
gram with over 1,000 seats brand strategy, we aim to pro-
2020.
“Given our experience in
the hospitality industry and
segment, including the likes
of WeWork India, CoWrks,
Awfis and Smartworks.
Ridhima Saxena
ridhima.s@livemint.com
MUMBAI

E
urope’s Vaalon Capital
has picked up a minority
stake in New Delhi-based
Adani Ports begins buyback of
MyMoneyMantra (MMM) for
₹104 crore, a senior company
executive said in an interview.
$650 mn bonds due next year
MMM, founded in 1989 by
Raj Khosla, works in partner-
ship with financial institutions Swaraj Singh Dhanjal
to distribute various products, swaraj.d@livemint.com
such as secured and unsecured MUMBAI
loans, insurance policies,

A
credit cards and mortgages, Raj Khosla, founder and MD, dani Ports and Special
through its online and physical MyMoneyMantra. Economic Zone Ltd on
distribution network. Tuesday said it has
“We have been very distributed ₹7,000 crore begun a tender offer to buy
impressed with the quality of worth credit-related products back bonds worth $650 million
the MMM team, their long- through its platform, as on 31 due next year. The bond repur-
standing relationships with March 2019. It has a physical chase programme by the Adani
non-banking financial compa- presence in more than 50 cit- group firm will close on 24
nies (NBFCs), banks and insur- ies across India, through 2,500 July, a company statement
ers, and their robust processes employees. said. Adani Ports is buying back
and platform,” said Adam Tee- The firm has tie-ups with the $1,000 bonds at $1,009.5
ger, senior advisor, Vaalon over 90 financial institutions, each.
Capital. including ICICI The company is also issuing
As part of the MyMoneyMantra Bank, HDFC new bonds of at least $650 mil-
deal, Vaalon Cap- will use the funds Bank, Axis Bank, lion, proceeds of which will be
ital have repre- to expand its Citibank, PNB used for the buyback of the Adani is also issuing new bonds of at least $650 mn, the proceeds
sentation on footprint to 10 Housing Finance bonds due in 2020. of which will be used for buyback of the bonds due in 2020. AFP
MMM’s board. Ltd, Tata Capital, “The tender offer is condi-
more cities by the Standard Char-
Vaalon is an tioned on the issuance of the tional cash flow. Its debt struc- operator’s profit remained
independent pri- end of this fiscal tered, State Bank new notes in a principal ture is corporate-like, with almost flat at $579 million in
vate equity and year of India and amount of at least $650 million spread-out bullet maturities,’ FY19, compared to $573 mil-
advisory firm Deutsche Bank. on terms and conditions satis- the rating agency said in a note. lion in FY18.
founded in 2016 MMM will use factory to the company,” the The bond issuance and the Several other Indian firms
and focuses on long-term the funds to expand its foot- statement added. bond repurchase programme had also tapped the offshore
investments in companies print. On Tuesday, Fitch Ratings follow last month’s $750-mil- bond market this year, follow-
with significant growth poten- “We look to expand to 10 said it has assigned the port lion offshore bond sale, which ing tepid fundraising activity in
tial. The firm’s investment more cities by the end of this operator’s new bond issuance aimed to repay existing loans 2018. Indian firms had raised
ticket size ranges from $15 mil- fiscal year,” said Khosla, who is of $650 million an expected and finance capi- $6.3 billion
lion to $75 million. It invests in also the managing director of rating of ‘BBB-(EXP)’ with a tal expenditure. The plan under through dollar-
both developed and emerging MMM. “We would also like to stable outlook. Adani Ports which Adani Ports d e n o m i n a t e d
markets. put our investment to good “Historically, the issuer has claims to be the is buying back bonds, down
“We are particularly excited use by deepening our existing experienced throughput resil- country’s largest $1,000 bonds at 51.7% from 2019,
with the MMM team’s initia- partnerships of almost 100 ience in economic cycles. port developer
tives focused on leveraging partners and also make signifi-
$1,009.5 each will shows Thomson
Adani Ports has some flexibility and operator with Reuters data.
data analytics, technology, cant investments in digital in modifying tariffs and around a 21.2% share of close on 24 July, a For instance,
and digital marketing. We marketing and data analytics. 14% of its revenue in the finan- port capacity. statement said GMR Hyderabad
look forward to partnering We are also looking to better cial year ended March 2019 The company International Air-
with them to help drive the service our customers by mak- (FY19) was associated with reported 18% rise port Ltd had
company’s next phase of ing our website friendlier and long-term revenue-guaran- in its debt to $3.9 billion in fis- raised $300 million through
growth,” he said. possibly creating a mobile app teed contracts. The company cal year 2019, compared with bonds in the offshore market to
MMM claims to have served to give on-the-spot response has spare capacity and can fund $3.3 billion a year ago, accord- refinance debt of its parent,
four million customers and to all our customers,” he said. its large capex plan from opera- ing to company data. The port GMR Infrastructure Ltd.
04 WEDNESDAY, 17 JULY 2019
NEW DELHI MARK TO MARKET

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

39,131.04 0.60 11,662.60 0.64 9,529.85 0.64 27,365.50 0.99 11,773.15 0.69 14,565.01 0.69 13,726.54 0.27
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

38,896.71 38,961.86 11,588.35 11,596.65 9,469.15 9,473.85 27,096.30 27,072.45 11,692.65 11,698.55 14,465.79 14,488.20 13,689.10 13,713.35
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

39,173.89 38,845.27 11,670.05 11,573.95 9,533.55 9,456.60 27,395.00 27,031.10 11,778.55 11,677.15 14,571.38 14,432.39 13,731.22 13,661.74

m SHORT TAKES
Debt breakdown
As telecom firms hold on to tariffs,
volume growth falls off the cliff
China’s total debt-to-gross domestic
product ratio is nearing 310% as of July.
Local currency Foreign currency
(as a % of GDP)

Households 54 0

R. Sree Ram The stabilization in revenues higher number of days in the June
Non-financial corporates 148.4 7.1 Bitter-sweet Consumer-level spend* Year-on-year change
in voice volumes
sreeram@livemint.com comes on the back of stable pricing quarter versus March,” analysts at (in  crore)

and implementation of minimum Kotak said in a results preview note. report card (Left-hand scale) (in %)
Government 50.6 0.4

T
he Telecom Regulatory recharge plans for prepaid users. The stable revenue scenario, how- While revenues have 40000 39,100 50
stabilized, volume 35,000
Authority of India’s (Trai’s) None of the leading telcos have ever, does not mean the industry’s
Financial sector 36.7 6.4 growth has dropped 40
Gold prices latest performance indica- announced any cuts in their tariffs challenges are behind them. significantly for 30000
inch higher,
Source: Institute of International Finance, Bank for International approach
tor report has mixed news since February 2019, points out India March quarter data also shows vol- telecom companies 36 30
Settlements, Haver Analytics, national data, Bloomberg
record for telecom investors. Con- Ratings and Research Pvt. Ltd ume growth has come off from the in recent quarters.
20000
VIPUL SHARMA/MINT highs; silver sumer spends on telecom services, Revenue trends are unlikely to see 35-40% levels seen in preceding 20
rates up which had been falling for several a major change in the recently con- quarters. Industry voice volumes
quarters, have stabi- grew just 18% year-on 10000 18
China’s debt ratio grows bit.ly/2JPFJdE
lized in recent quar- A MIXED BAG year, the slowest since *Includes service tax and GST
10

as economy loses steam ters. But while telcos Jio’s commercial Source: Telecom Regulatory 0
Q2 Q4
0
held on to tariffs and REVENUES OF VOLUME GROWTH THE POSTPAID launch, points out the Authority of India, Kotak
Institutional Equities FY18 FY19
China’s efforts to shore up sagging economic maintained revenues, telecom companies
have stabilized
has come off from
the 35-40% levels
segment continues
to see a sharp fall
Kotak note. 4G data
VIPUL SHARMA/MINT
growth are leading to a resurgence in indebt- volume growth came after several seen in the in average revenue usage per subscriber
edness, underlining the challenge President Xi off significantly in the quarters of declines preceding quarters per user grew by a modest 1.6% nues. The churn is expected to con- of them. “Despite the likely stabilisa-
Jinping’s government faces in curbing finan- March quarter. sequentially in the tinue in the June quarter as well. tion of revenues and possibly profita-
cial risk. The nation’s total stock of corporate, First, the good news March 2019 quarter, “Even as like-for-like pricing has bility, telcos would continue to rely
household and government debt now exceeds on revenues. Aggregate consumer cluded June quarter either. Both implying usage is plateauing for been stable for the past few quarters, on external funding arrangements to
303% of gross domestic product and makes up spends on mobile services, including Bharti Airtel Ltd and Vodafone Idea many smartphone users. In the pre- incumbents continue to see net nega- support their debt servicing and ele-
about 15% of all global debt, according to a goods and services tax, stood at Ltd are expected to report stable rev- ceding three quarters, growth had tive impact of consumers trading up vated capex requirements,” India
report published by the Institute of Interna- around ₹35,000 crore in the quarter enues in comparison to the March stood at 2.8%, 5.9% and 12.2%, respec- and trading down on the average rev- Ratings and Research said in a note.
tional Finance. That’s up from just under 297% ended March, according to an analy- quarter. “Overall, our prognosis is tively. enue per user axis,” added the ana- “In spite of capital infusions, the
in the first quarter of 2018. sis by Kotak Institutional Equities. that of a steady quarter with Bharti Also, the postpaid segment contin- lysts at Kotak. credit metrics of telcos remain at ele-
The real growth of the world’s second-larg- This translates to annual spends of reporting a modest 1.6% sequential ues to see a sharp fall in average reve- While volume trends are not wor- vated levels, and a material improve-
est economy slowed to a record-low pace in the ₹1.4 trillion, 5% higher than the lows growth in wireless revenues and nue per user. Users are downtrading rying yet, telcos still have the hercu- ment in profitability would be essen-
second quarter amid the negative effects of the of ₹1.34 trillion in the September 2018 Vodafone Idea reporting a flattish their usage plans, reflective in 33% lean task of profitability improve- tial for an improvement in their credit
trade war with the US as well as longer-term quarter. revenue print, largely on the back of year-on-year fall in postpaid reve- ment and balance-sheet repair ahead profiles,” it added.
factors such as its aging society. In a bid to
manage the slowdown, the government has
tried to funnel credit to the private sector and
encourage domestic consumption—at the
price of higher debt. BLOOMBERG

Pay boost
Commercial vehicles among the The exuberance in the bond market
UK wages have risen at the fastest pace
since 2008.
4 UK regular pay growth (in %)
worst placed in auto slowdown may see a longer-than-expected run
4
3.6
Vatsala Kamat Aparna Iyer flight to safety the world over. The firm said in a recent note.
3 Cyclicality 23 M&HCV cycle length (in quarters)
vatsala.k@livemint.com aparna.i@livemint.com bank predicts the 10-year bench- The Reserve Bank of India (RBI)
factor mark yield to fall from the current would soon come up with a detailed
2 Medium and heavy 13

A T
shok Leyland Ltd he Indian government bond 6.33% to 6%. framework to spell out its stance on
announced a nine-day commercial vehicle 9 7 market is perhaps the best- One cannot blame investors for liquidity. Expectations on these too
downcycles have lasted an 6 5
1 shutdown this week at looking place for investors being excited since conditions have have coaxed investors to buy more.
30 Jun 2008 31 May 2019 average of seven quarters, Downcycle
its Pantnagar plant because of with a range of 4-11 right now. The value of their hold- never been this perfect for the bond What’s more, globally, bond
0 Source: Office for National Statistics, Bloomberg
“weak demand and outlook for Upcycle ings has risen sharply, as yields have market. Policy rates are headed yields are ultra low, even negative.
quarters in the time frame -4 -5
VIPUL SHARMA/MINT the industry”. This comes after from FY1998 till FY2019. -6 dropped more than 50 basis points lower, as inflation is The last factor
a six-day shutdown in June -10 -11 so far this month. expected to be within The government’s explains why foreign
Source: Jefferies India
UK wages rise at fastest and reflects the ill-fortune of Despite the stellar run, no one the monetary policy announcement investors put in $2.5
the medium and heavy com- VIPUL SHARMA/MINT
expects this exuberance to evapo- target. Some such as that it is willing billion into Indian
pace since 2008 mercial vehicle (M&HCV) overall vehicle registrations ber. This is notwithstanding rate anytime soon. Bank of America Mer- to borrow bonds in 2019, half of
industry. dipped 5.4% year-on-year, reg- the rise in diesel prices, which “As long as oil is low and the rill Lynch expect pol- which came in this
offshore was a
UK wages grew at the fastest pace in 11 years in The second-largest truck istrations of CVs fell by a huge would normally have been global rate trajectory is on the icy rate cuts to a total month. They were sec-
the three months through May and unemploy- maker is not alone in battling 19.3%. passed on fully. Besides, ana- downside, I think the market would of another 75 basis key trigger to ond only to mutual
ment remained at its lowest rate since the mid- the slowdown. “The overall Dealer inventory, too, rose lysts believe that the transition consolidate at these levels; although points this year. bring yields down funds in being the big-
1970s. Average earnings excluding bonuses commercial vehicle industry from 45-50 days in May to to BS-VI norms, which is lower levels cannot be ruled out,” Others, such as gest buyers of govern-
rose 3.6%, the Office for National Statistics said demand has softened. Produc- 60-65 days in June. This is expected to lead to a 10-15% said Soumyajit Niyogi, associate Nomura Research, ment bonds. With cor-
on Tuesday. The number of people in work tion at our manufacturing worrisome given that there increase in vehicle prices, will director at India Ratings and said rate cuts will be fewer, but porate bonds increasingly looking
rose 28,000 to a record high, leaving the job- locations is in was a decline in also add to the delay in revival Research Pvt. Ltd. more liquidity infusion would be risky, mutual funds increased the
less rate at a 44-year low of 3.8%. line with our plan In June, while inventory in two- in the demand for CVs. Recent In fact, analysts at Deutsche Bank done. “We expect a more proactive safety net of their funds by buying
The figures underline the buoyancy of the and aligned to overall vehicle wheelers and pas- data shows that growth is said that yields could fall to the low- liquidity stance to ensure better government bonds.
labour market, which has boosted consumer the market registrations senger vehicles. slowing down even in the light est level since 2008, when the transmission of rate cuts that were But as much as bond market is
spending and left employers struggling to find demand. A few dipped 5.4% Against this CVs segment, which had hith- global financial crisis triggered a already delivered,” the brokerage about interest rate expectations, it is
staff. Basic wage growth was higher than the days of the backdrop, a erto bucked the trend. also about supply.
year-on-year,
3.5% predicted by economists in a survey. Total month are also recovery is These concerns are mir- Slide to bliss Buying spree The government’s announce-
pay rose 3.4%, boosted by settlements in the being utilised for those of CVs fell unlikely soon. “In rored in the 25% drop in Ashok ment that it was willing to borrow
by a huge 19.3% Govt bond yields have dropped Mutual funds and foreign banks have
National Health Service. BLOOMBERG planned mainte- MHCVs, the Leyland’s stock price since 50 basis points so far in July on been the biggest buyers of government offshore to lighten the burden of
nance activities,” down-cycle end-October last year, which hopes of more rate cuts, lesser bonds in July so far. supply in the onshore market was a
said a spokesper- started in 3QFY18 is double the rate at which the supply and more liquidity. Bond purchase/sale up to 15 July (in  crore)
key trigger to bring the yields down.
son of CV market leader Tata and is in its third quarter. His- Nifty Auto index fell. While enough has been said
Sub-zero debt Motors Ltd. torically, MHCV down-cycles The Tata Motors stock has
7.8
Bond yield (in %) Mutual funds 6,393.73 about the pitfalls of a sovereign dol-
Outstanding corporate debt below 0% yield 7.4
surges faster than sovereign bonds. Meanwhile, data on new have averaged seven quarters performed relatively better Foreign banks 6,782.49 lar bond issue, the comments from
150
vehicle registrations released with a range of 4-11 quarters,” because its financials hinge on 7 7.27 Private sector banks 1,540.17
New Delhi and RBI suggest this is a
Sovereign Corporate on Tuesday by the Federation Jefferies India Pvt. Ltd said in a subsidiary Jaguar Land Rover road they are willing to take.
(in $ billion)
of Automobile Dealers Associ- note. Ltd’s performance. 6.6 Public sector banks -19,070.13 Meanwhile, the cocktail of expec-
ations shows that CVs were the Another barometer of eco- The odds are stacked heav- 6.33 Others 4,023.59 tations from policy rate cuts to more
6.2
100 2 Apr 16 Jul
worst hit by the slowdown in nomic health, truck rentals, ily against a near-term recov- Source: Bloomberg Source: Clearing Corporation of India, Bloomberg
liquidity infusion is enough to keep
the auto sector. In June, while has been sliding since Novem- ery for the CV segment. bond traders buying.
VIPUL SHARMA/MINT
50

0
15 Jul A week A month A year
Source: Bloomberg
ago ago ago

VIPUL SHARMA/MINT
Outlook on profit growth has turned gloomy globally, thanks to trade wars
Harsha Jethmalani
EMs succumb to sub-zero IHS Markit’s global business
Fading expectations Profit outlook for next 12 months mies,” he added. “Margins could continue to
harsha.j@livemint.com outlook survey for June showed Net balance of response* (in %) For India, analysts said the remain under pressure (negative
epidemic as debt pile rises that worldwide business opti- Manufacturers and service
BRIC Global growth slowdown that started a operating leverage, rising input
providers across the globe 25

T
he backdrop for the June
A sinkhole of negative-yielding debt in emerg- quarter results season is
ing markets (EMs) has doubled in size over the anything but bright. A tri-
past week. This time last year it was non-exis- annual survey conducted by IHS
tent. The amount outstanding soared to $246 Markit in June said optimism
billion, driven mostly by the growing pile of among Indian companies
corporate debt with sub-zero rates, which regarding output and profitabil-
almost tripled in seven days, according to data ity has further faded.
compiled by Bloomberg. “Predictions of softer activity
Corporate heavyweights such as China Ever- growth underpin downward
bright Bank Co. and Petroleo Brasileiro SA, and revisions to the profits outlook,
sovereigns including Poland and Hungary have subdued hiring plans and rela-
seen their rates drop below zero as the dovish tively muted capex intentions,”
turn at the Federal Reserve and the European said the survey report.
Central Bank fuelled the clamour for yield. EM The scenario is not much dif-
bonds handed investors 3.5% over the past two ferent across the globe, which is
months, more than a percentage point above largely a consequence of the
returns on US Treasuries, according to Bloom- trade tussle between the US and
berg Barclays indices. BLOOMBERG China.
mism relating to future output
and profits slid to its lowest since
2009. “Profits gauges are down
to new survey lows in both manu-
facturing and services, with the
latter indicating especially weak
optimism,” it added.
Region wise, profit expecta-
tions in the US fell sharply to the
lowest since late-2016, accompa-
nied by a weakening of hiring
intentions. Profit expectations in
the UK meanwhile stayed close
to February’s post-recession low,
and slipped to a six-year low in
the eurozone. In the emerging
markets, companies reported the
bleakest outlooks for profits,
employment and business
aren’t too gung-ho on
future profit growth.
BRIC: Brazil, Russia, India and China
*Respondents having an optimistic
outlook adjusted for those having a
pessimistic view
Source: IHS Markit
investment seen since 2009.
Commenting on the survey,
Chris Williamson, chief business
economist at IHS Markit, said:
“Not only does the survey indi-
cate a further weakening of
global economic growth in the
second half of 2019, but compa-
nies are expecting profits to be
especially hard hit, which is lead-
couple of quarters ago is costs, rising competition, etc),
20 expected to broaden. In addition despite low reported inflation,”
to rural stress, demand disrup- Emkay Global Financial Services
15
12 tion due to the general election is Ltd said in a report on 9 July.
10 a key reason. Meanwhile, the recent Union
11 7 Brokerage house Motilal budget did little to address con-
7
5
Feb 2016 Jun 2019 Oswal Financial Services Ltd said cerns on growth. Contrary to
that risks to earnings remained investors’ expectations, no big-
NAVEEN KUMAR SAINI/MINT
tilted toward the downside, given bang stimulus was announced to
ing to a pull-back in both hiring the still weak underlying demand boost consumption. With that,
and business investment around scenario and lack of private capex the onus to revive the economy
the world.” recovery. “The earnings growth has shifted to the Reserve Bank of
“The big change since earlier recovery in FY20 is likely to be India, which is expected to cut
in the year has been a marked narrow and predominantly led rates. That said, the challenge on
deterioration of optimism among by financials, even as global cycli- transmission of interest rate cut
US companies, alongside a slide cals drag and consumption-ori- remains, leaving little hope for a
in business optimism in China, ented sectors post deceleration quick turnaround in the econ-
indicating how trade war ten- in earnings,” added its earnings omy and thereby corporate earn-
sions are hurting both econo- preview report. ings.

Mark to Market writers do not have positions in the companies they have discussed here
 CORPORATE WEDNESDAY, 17 JULY 2019
NEW DELHI 05

REUTERS

Retail auto sales continue in

Jet Airways has not flown since
18 April because of funding
slow lane in Jun, decline 5.4%
Showroom sales of passenger vehicles declined 4.6% year-on-year to 224,755 units
Malyaban Ghosh
malyaban.g@livemint.com Air India, which is surviving on a ₹30,000 crore taxpayer-funded
NEW DELHI bailout, has failed to maintain its dominance in Indian skies.

Government to invite
R
woes. MINT etail sales of automobiles
across India declined Tax fraud of

Creditors’ panel 5.4% year-on-year in about

₹38,000 cr

to vote on $10 mn
June to 1.64 million
units, according to data
released by the Federation of Auto-
detected
last year
bit.ly/2XNVH1F
expressions of interest
interim fund for mobile Dealers Associations

Jet tomorrow
(FADA) on Tuesday.
This comes against the backdrop
of consumer sentiment continuing
for Air India by August
to remain subdued because of the
Shayan Ghosh & Rhik Kundu overall slowdown in the economy Siddhartha Singh D.S. Malik, a spokesman of
MUMBAI and tightening of credit norms by feedback@livemint.com the ministry of finance, did not
banks. NEW DELHI immediately answer two calls

T
he committee of credit- Retail sales of automobiles made to his mobile phone.

ors (CoC) of Jet Airways
will vote on Thursday
on whether to pump in $10
million into the airline as
interim funding, said a person
aware of the development.
This, along with other reso-
lutions, was discussed at the
first CoC meeting of Jet Air-
ways on Tuesday. The other
resolutions included calling
for bids and admission of
claims by creditors.
“We will seek proposals
from investors in the coming
weeks and investors who had
shown interest in the airline
before it was referred to
NCLT will have to send a fresh
proposal,” the person men-
tioned above said on condi-
tion of anonymity.
The advertisements for
these will be published soon,
he said.
The Mumbai bench of the
National Company Law Tri-
bunal (NCLT) on 20 June
admitted Jet Airways under
the Insolvency and Bank-
ruptcy Code (IBC) after len-
ders referred it to the bank-
ruptcy tribunal.
Jet Airways has not flown
since 18 April because of fund-
ing woes.
A consortium of 26 bankers
led by the State Bank of India
had approached the tribunal
to recover dues of more than
₹8,500 crore. The lenders
have been trying to sell the
beleaguered airline as a going
concern for the past five
months.
Apart from banks, the air-
line also owes more than
₹10,000 crore to hundreds of
vendors, primarily aircraft
lessors, and over ₹3,000
I
across segments started to decline Passenger vehicle manufacturers, in anticipation of continued decline in demand, reduced dispatches by double ndia is considering inviting Dhananjay Kumar, a
in the second half of FY19, as banks digits in every segment in June. PRADEEP GAUR/MINT expressions of interest to spokesman of Air India,
and non-banking financial compa- sell Air India Ltd by the end declined to comment.
nies (NBFCs) became over cautious control its dealer inventory. indicating an overall slowdown in June as manufacturers cut produc- of next month as the govern- The plan is being prepared
before extending credit to dealers Wholesale sales of passenger economic activity. One reason, tion. ment aims to complete the after the government’s
who rely on these institutions for vehicles in the April-June quarter however, was a revision in truck For two-wheelers, however, it transaction this year, people attempt to partially exit the
short-term loans to meet their witnessed the sharpest year-on- axle load norms. Lack of financing has increased from 55-60 days to with knowledge of the matter carrier failed to attract any bid-
operational expenses. Rising bad year decline of almost 18%, since options from NBFCs continued to 60-65 days during the same period said. der last year.
loans from the automobile sector, the 23% year-on-year fall in the exacerbate the situation for owners as manufacturers pushed more The government will con- Finance minister Nirmala
mostly because of the shutdown of third quarter of FY01. of truck fleets. Retail sales of two- vehicles compared to retail duct road shows Sitharaman in her
dealerships, prompted banks, such In June, passenger vehicle man- wheelers also declined by 5% year- demand, which fell below their as well as be open Govt will conduct budget presenta-
as the State Bank of India and ufacturers, in anticipation of con- on-year to 1.32 million units. This expectations. This also led to the to meet prospec- road shows and tion for the cur-
HDFC Bank, to reduce their expo- tinued decline in demand, reduced indicates subdued demand in the inventory of commercial vehicles tive buyers even is open to meet rent financial
sure towards inventory funding of dispatches by double digits in every rural market because of a fall in with dealers rising from 45-50 days before the prospective year said the gov-
automobile dealers. segment. Showroom sales of pas- farm income and increase in the in May to 55-60 days in June. expressions of ernment will
buyers before the revive plans to
The situation further worsened senger vehicles declined 4.6% year- cost of ownership, as a result of Liquidity continues to be a interest are
as demand in the rural mar- worry, both on the retail sought, the peo- expressions of sell Air India and
ket nosedived because of MUTED DEMAND SPURS DESPERATE MEASURES front as well as for dealers, ple said, declin- interest are sought the divestment
falling farm income and according to FADA presi- ing to be identi- would be part of
lack of financing options CONSUMER ASHOK Leyland will MARUTI Suzuki has NORMALCY in dent Ashish Kale. fied as the discus- the government’s
from NBFCs. The slow- sentiment remains
subdued due to an
stop production
at its Pantnagar
also adopted double- lending remains
digit production cut elusive with NBFCs
Normalcy in lending, sions are private. efforts to raise ₹1.05 trillion
down in manufacturing overall slowdown in manufacturing plant in its manufacturing and banks still in a which is the need of the The process will likely allow selling stakes in state-run
and infrastructure building the economy for nine days capacities cautious mode hour, remains elusive with the bidders to look at the companies.
activity in the run-up to the NBFCs and banks still in a accounts of the airline except Air India, which is surviving
elections also impacted the cautious mode. for some portions that are con- on a ₹30,000 crore n taxpay-
sale of commercial vehicles. Ashok on-year to 224,755 units. enhanced insurance cost. “Because of the delayed mon- fidential and also see the share er-funded bailout, has failed to
Leyland Ltd, the country’s second- Wholesale sales in the passenger During the first quarter of the soon in June and its uneven spread purchase agreement, they said maintain its market domi-
largest commercial vehicle manu- vehicle segment declined sharply current financial year, sales of auto- in the first half of July, the near- without providing details. nance as a slew of carriers
facturer, said on Monday that it will by 17.54% to 225,732 units led by mobiles from showrooms declined term outlook of 4-6 weeks remains The potential bidders will including IndiGo and SpiceJet
stop production in its Pantnagar 24% fall in passenger car sales to by 6% to 5.12 million units. Retail negative as weak consumer senti- have the option to make sug- started to offer ultra-cheap,
manufacturing plant for nine days 139,628 units and utility vehicles by sales of passenger vehicles ment and tight liquidity conditions gestions for changes in the sale on-time flights more than a
to balance its wholesale inventory 0.9% to 72,917 units, according to declined by just 1%, but commercial are likely to continue. Fada will terms during the process of decade ago. The state-run air-
with retail demand. data released on 10 July by the Soci- vehicle sales fell sharply by 14%. once again be engaging with our expressing their interest in the line has total debts of $8.4 bil-
Maruti Suzuki India Ltd has also ety of Indian Automobile Manufac- Two-wheeler sales declined by policymakers with an appeal to deal, the people said. lion and posted losses of more
resorted to a double-digit produc- turers (SIAM). 6.4%. Inventory of passenger vehi- look at the current situation and The government is looking than ₹7,600 crore last year,
tion cut in its manufacturing capac- Retail sales of commercial vehi- cles with dealers dropped from seek urgent measures to support to sell all its stake in the carrier, according to provisional esti-
ities for five consecutive months to cles declined 19.3% to 48,752 units, 35-40 days in May to 30-35 days in the auto industry,” he said. they said. mates. BLOOMBERG
Indus plans to host EV charging units across its vast network of telecom towers
Navadha Pandey smaller operators to either day making it suitable for EV which hangs on our location incorporated in November
navadha.p@livemint.com close operations or consoli- charging,” a top company offi- and pays us money, we are 2007 as a joint venture
NEW DELHI date—leaving just two opera- cial said, requesting anonym- happy about it,” he said. “There between certain entities of
tional entities, Vodafone Idea ity. is a huge amount of traction Bharti Group, Vodafone Group

crore to its employees who
have not been paid since
March.
The airline has had nega-
tive net worth for long and has
run a loss of more than
₹13,000 crore in the past few
years. Its total liabilities
amount to over ₹15,000
crore.
The NCLT will hear the
insolvency case and the
progress report by the insol-
vency resolution professional
(IRP) on 23 July.
The tribunal has ordered
the IRP to complete the IBC
process in three months,
though the law allows six
months, saying “the matter is
of national importance”.
shayan.g@livemint.com
I
ndus Towers Ltd, India’s
largest mobile tower com-
pany, plans to utilize its vast
base of telecom towers to
charge electric vehicles as part
of a strategy to tap this fledgling
industry and morph into an
overall infrastructure provider.
The move will allow the
company to secure a unique
revenue stream outside the tra-
ditional model of renting out its
towers to mobile phone opera-
tors. It would also help Indus
Towers reduce dependence on
the troubled domestic telecom
sector.
The telecom industry has
witnessed severe disruptions
after the entry of Reliance Jio in
September 2016 with cheap
tariffs, which eventually forced
and Bharti Airtel Ltd.
With fewer telecom tenants,
the tower industry has flipped
from being a seller’s market
over three years ago to a buyer’s
market currently.
Indus Towers, thus, believes
that hosting EV charging units
is a natural extension for the
company because of its large
footprint.
“We are very keen about this
(EV) space. Since the car tank
will be replaced by a battery,
you will need to charge that
battery at either commercial
places or your building. The
kind of turnaround we talk
about in these electric vehicles,
you will need many locations.
And we have locations which
are powered 24 hours of the
Indus Towers’ plans come at
a time when the Union govern-
ment is aggressively looking to
increase the sale of electric
vehicles and also make the
country a global manufactur-
ing base for EVs. The govern-
ment in this year’s budget
announced income tax rebates
of up to ₹1.5 lakh to customers
on interest paid on loans to buy
electric vehicles, with a total
exemption benefit of ₹2.5 lakh
over the entire loan period.
The government also
announced customs duty
exemption on lithium-ion cells,
which will help lower the cost
of the batteries in India, as they
are not produced locally. Mak-
ers of components, such as
solar electric charging infra-
Indus Towers’ plans come at a time the Union government is
aggressively looking to increase the sale of EVs PRADEEP GAUR/MINT
structure and lithium storage
batteries, will be offered invest-
ment-linked income tax
exemptions under Section 35
AD of the Income Tax Act,
besides other indirect tax bene-
fits.
To handle the charging of
EVs, Indus Towers would have
to extend the outlets of its cur-
rent mobile tower infrastruc-
ture to EV charging as well, the
official added. This is part of its
endeavour to become an infra-
structure provider independ-
ent of any sector.
“We have a location to sell.
Any and every technology
that Indus is seeing from and Idea Cellular, is in the final
municipalities in providing the stages of completing a merger
EV charging stations and trials with Bharti Infratel Ltd.
have already started in Gur- Last April, the two tower
gaon.” companies had
Indus Towers, The move will let agreed to merge
is still to firm up Indus secure a their businesses to
its EV charging unique revenue create the world’s
plans, including stream outside the largest tower
the likely invest-
traditional model company outside
ments given the China.
early stages of the of renting towers The combined
EV ecosystem in to phone firms entity will own
India. more than
“What kind of 163,000 towers,
nozzle will go into the second only to China Tower.
car...what will be the battery It will be listed on the stock
charging model and the charg- exchanges, as Bharti Infratel is
ing cycle, or will the battery be a publicly-traded company.
swappable...all that is still on Its nearest rival in India will
the table,” the official said. be ATC, which has 78,000
The company, which was towers.

Respond to Gangwal’s charges in three weeks, corporate affairs ministry tells InterGlobe
RAMESH PATHANIA/MINT

FROM PAGE 1 denied the charges levelled by agreement also forces Gang-

grounding of Jet Airways

(India) Ltd to expand overseas
and further increase its market
share in India.
The ministry is assessing
whether the special rights that
Bhatia’s InterGlobe Enter-
prises Pvt. Ltd (IGE) enjoys in
running the airline on account
of the shareholder agreement
has in anyway led to any kind
of deviation from corporate
governance standards.
“As of now, the company has
not received any request for
information from the ministry
of corporate affairs,” IndiGo
said in a statement. A request
for information sent to IGE
remained unanswered at the
time of publishing. In a state-
ment earlier in the week, IGE
Gangwal and suggested the
issue was the sanctity of the
agreement entered into by
business people freely and on
their own will. “Do business
ethics and morals permit a
contracting party to walk away
from its obligations at its con-
venience after it has enjoyed
the benefits under an agree-
ment and pretend to be a vic-
tim? Mr. Gangwal has much to
answer,” said the statement.
The shareholder agreement
gives IGE the power to appoint
three out of the six directors of
IndiGo, nominate a chairman
as well as appoint a managing
director and chief executive.
Gangwal and his associates
hold about 37% in the com-
pany, while Bhatia and his
associates hold 38%. The
wal and his affiliates to vote
alongside IGE Group on the
appointment of directors, as
IndiGo may get more directors
per a letter that Gangwal sent
to the capital markets regula- FROM PAGE 1 who serves as the chairman, woman director and diver-
tor earlier this month and Rohini Bhatia, InterGlobe sity on the board,” said the
shared with the public by the not respond to text messa- Technology president Anil second person.
airline’s parent company ges. Parashar and “Due to
through stock exchanges. Gangwal, meanwhile, former World Gangwal’s
“The question is what sort of said he won’t sell his share- Bank execu- MCA is looking insistence on
extra influence or control you holding and will maintain tive Anupam into whether the dilution of the
can give through a share- his stake, according to Khanna, an shareholder pact IGE Group’s
holder agreement. It cannot Bloomberg. independent between the rights, the
take such a shape that it actu- “I am here for the long director. promoters is in expansion has
ally affects corporate govern- Rahul Bhatia heads InterGlobe Enterprises, one of IndiGo’s haul,” said Gangwal. “I have “Bhatia and line with the been kept
ance norms including func- promoter entities, and owns about 38% stake in InterGlobe. no desire to sell my stake or Gangwal had Companies Act pending and
tioning of independent direct- raise my stake.” been discuss- the company is
ors and the audit committee,” has so far not found any corpo- share are two reasonable indi- IndiGo’s board comprises ing the idea of in technical
said the person. The law will rate governance lapse at the cators of efficient and sound Rahul Bhatia and Gangwal, expanding the default,” the
prevail if any such agreement company. management. What has come besides former Securities board for a while, more so to person said.
is contradictory to the provi- “The terrific track record of is just an allegation, nothing and Exchange Board of deal with the requirement Anirudh Laskar contrib-
sions of law. the company and the com- earth-shattering,” said the India chief M. Damodaran, of having an independent uted to this story.
However, the government pany’s 50% air travel market person.
06 WEDNESDAY, 17 JULY 2019
NEW DELHI CORPORATE

L&T CEO Subrahmanyan, two

others board Mindtree at AGM
L&T assures Mindtree shareholders that firm will be kept independent, agrees to hefty dividend payout
Anirudh Laskar emerged as the promoter, and the
anirudh.l@livemint.com single-largest shareholder of The Essar Steel case pertains to a 10-million tonne per annum
MUMBAI Mindtree. Following this, all four steel mill in Gujarat, which became insolvent in August 2017, with
founders cum promoters of Mind- dues of more than ₹54,000 crore. AP

E
ngineering giant Larsen tree—Subroto Bagchi (non-execu-
and Toubro Ltd is set to
complete its acquisition
of Mindtree Ltd with the
tive non-independent director of
Mindtree), Krishnakumar Natara-
jan (chairman, Mindtree), N.S. Par-
Microsoft is
killing
classic
internet
Lenders to Essar Steel
induction of its three
nominees on the Bengaluru-based
IT firm’s board.
thasarathy (executive director,
Mindtree) and Rostow Ravanan
(managing director and chief
games old
Windows
users loved
move Supreme Court
At Mindtree’s 20th annual gen- executive officer, Mindtree), who
against NCLAT ruling
bit.ly/2LmD3az

eral meeting on Tuesday, Mind- had been vociferously resisting

tree shareholders met the com- the hostile takeover, resigned
pany’s board to deliberate on three from Mindtree’s board.
critical agendas, which included On 20 June, Mindtree proposed Prathma Sharma parts. In the first part, the court
appointment of three nominees to appoint S.N. Subrahmanyan, prathma.s@livemint.com rejected the plea of Prashant
from L&T as directors on its board; CEO and managing director, L&T; NEW DELHI Ruia, managing director, group
approval of a special dividend of Jayant Damodar Patil, whole time chief executive officer and

200% per share; and one of Mind-
tree’s founders Subroto Bagchi’s
decision to opt for retirement
from the board.
However, during the AGM, the
shareholders chose not to ask any
questions on these issues. Accord-
ing to two people with direct
knowledge of the matter, the
shareholders were more curious
about the process of transition and
business continuity plan after the
takeover by L&T.
Mindtree’s public shareholders
asked the board whether L&T
would merge its IT services sub-
sidiary, L&T Infotech Ltd, with
Mindtree, and whether L&T was
looking to shift the head office of
Mindtree from Bengaluru to
Mumbai, according to the two
people, who requested anonymity.
“Most Mindtree public sharehold-
ers favoured the appointment of
m SHORT TAKES
Rosneft-led Nayara to invest
$850 mn to build petrochem plant
New Delhi: Russian oil major Ros-
A
director and senior executive vice- consortium of lenders director, Essar Global Holdings
president of L&T’s defence busi- led by State Bank of Limited, challenging Arcelor-
S.N. Subrahmanyan, CEO and managing director of L&T. ANIRUDDHA CHOWDHURY/MINT ness, and Ramamurthi Shankar India has filed a petition Mittal’s eligibility to bid for
Raman, chief financial officer of before the Supreme Court Essar Steel under Section 29A
three executives from L&T as holders in Tuesday’s AGM. from the board. They also L&T as directors on the Mindtree against a National Company of the Insolvency and Bank-
directors on the Mindtree board,” “L&T agrees to the special divi- approved the 18 April proposal to board. Law Appellate Tribunal ruptcy Code (IBC), which says
said the first person. dend payout for Mindtree share- appoint Prasanna Rangacharya On Tuesday, public sharehold- (NCLAT) ruling that Essar that bidders cannot be con-
The Mindtree shareholders also holders,” said the second person, Mysore and Deepa Gopalan ers voted in favour of these Steel’s operational creditors nected to other defaulting enti-
seemed to be in favour of the hefty who is close to L&T. Wadhwa as independent directors appointments, said the first per- have to be treated on a par with ties.
dividend payout proposal that was Late on Tuesday, Mindtree said on Mindtree’s board. son, adding the shareholders financial creditors at the time of The appellate tribunal
announced by the com- asked the board about the settling claims. observed that the matter was
pany in April, the first WHAT HAPPENED AT THE AGM process of integration. The insolvency court’s rul- settled by the Supreme Court
person added. “They also asked if there ing is expected to have a far- on 4 October 2018 and Arcelor-
On 18 April, while BESIDES the CEO, SUBRAHMANYAN L&T also agreed to SHAREHOLDERS, will be retrenchment reaching impact and could sig- Mittal’s eligibility as a resolu-
declaring the annual L&T’s R. Shankar
Raman and Jayant
told shareholders the dividend payout
that Mindtree would of 270% announced
meanwhile, sought
to know if there
after the takeover or not,” nificantly improve recoveries tion applicant “cannot be re-ag-
results for fiscal 2019, the Patil were appointed be kept distinct by Mindtree in April would be he added. for operational creditors, who itated again and again”.
Mindtree b o a r d to Mindtree’s board from L&T entities for its shareholders retrenchments In his speech at the were so far considered to be a In the second part, the appel-
announced a total divi- AGM, Subrahmanyan notch below financial creditors. late tribunal dealt with the dis-
dend of 270%, or ₹27 per said: “Mindtree will be “By virtue of the impugned tribution of resources among
share, for all shareholders. This that its shareholders approved all On 30 June, L&T completed its kept distinct from L&T Infotech, judgement the entire CIR (Cor- creditors. “In the resolution
included a proposal for a special resolutions presented in the AGM, ₹10,000 crore hostile takeover of L&T Technology Services and the porate Insolvency Resolution) plan, 0% of their (operational
dividend payout of ₹20 per share, including the dividend payout, Mindtree through an open offer. recently-formed business division process with respect to the cor- creditor) debt has been pro-
which was supposed to be appointment of L&T nominees, Post the public offer, L&T, with a L&T-Nxt. These entities would porate debtor being one of the posed to be paid, whereas the
approved by Mindtree’s share- and Bagchi’s decision to step down 60.06% stake in Mindtree, has run at an arm’s length.” largest non-performing assets financial creditors have been
of the country has been put proposed to be paid 92.5% of
under jeopardy and the shock- their dues and claims of some of
ing unsettling of otherwise set- the operational creditors have
tled principles of been notionally
law recognising NCLAT had ruled assessed at Re1 by
Snapdeal narrows FY19 losses to ₹186 crore and protecting
the rights of the
secured creditors
that lenders
and operational
creditors would
the resolution
professional with-
out any basis,”
on account of NCLAT said.
Salman S.H. June 2018 and also made the complete mis-
get 60.7% of their “Instead of
salman.h@livemint.com highest ever net revenue in its reading of the outstanding rejecting the reso-
REUTERS BENGALURU: history in the month of October code (Insolvency claims lution plan sub-
2018,” the company said in a and Bankruptcy mitted by Arcelor-

E
neft-backed refinery Nayara -commerce marketplace
Energy said on Tuesday it will be Snapdeal, owned by Jas-
investing $850 million to expand per Infotech Pvt. Ltd, has
into petrochemical. narrowed its losses to ₹186
Nayara plans to set up a 450,000 crore in 2018-19 from around
tonnes-a-year Polypropylene ₹611 crore in the previous fiscal
plant, the company said in a state- year, the company said on
ment.The company has licensed Tuesday.
technology from W.R. Grace & Co. Snapdeal has reduced the
to produce broad range of phthal- losses by cutting expenses and
ate-free products from its focusing on growing its market-
400,000 barrel per day refinery in place by listing more seller-
Gujarat. REUTERS sourced products, rather than
products sourced from brands.
In FY17, Snapdeal’s consoli-
Tata Motors-owned JLR gets dated loss stood at ₹4,638 crore.
While filing its financials last
UK loan guarantee for EVs year, the company said that it
RAMESH PATHANIA/MINT had identified “parts of the rev-
enue which were dispropor-
tionately loss-making…and cur-
tailed during the year in order
to realign the business for
healthy margins”.
Snapdeal’s consolidated rev-
enue grew 72% to ₹925.3 crore
in FY19 from ₹535.9 crore in the
previous financial year.
The revenue from opera-
statement. Snapdeal’s chief Code) has endan- Mittal India Pvt.
executive Kunal Bahl also gered the national economic Ltd, we modify the plan to safe-
claimed that the company’s interest of the country overall,” guard the rights of the opera-
customer base grew “2.2X and the consortium argued. tional creditors and other
traffic surged 2.3X to 70 million The appellate tribunal ruled financial creditors,” said
unique users/month (during that lenders and operational NCLAT chairperson Justice
FY19)”. “The doubling of our creditors will get 60.7% of their S.J. Mukhopadhaya.
orders in the last one year is outstanding claims and pro- The judgement will have a
actually a two-fold increase in portionately share the ₹42,000 significant impact on the status
the business of the seller part- crore that global steel giant of operational creditors, as this
ners on our platform, the ArcelorMittal has offered to pay class has now been placed at the
Kunal Bahl, chief executive officer of Snapdeal. MINT majority of whom are small for the debt-laden firm, which same level as financial credit-
businesses. Each and every in rupee terms entails a pay- ors, or lenders, who form the
tions, or the income generated around ₹784.1 crore in FY18. order is fulfilled on Snapdeal is ment of ₹30,030 crore to finan- committee of creditors (CoC).
by Snapdeal from day-to-day “This year we continued our by independent, third-party cial creditors and ₹11,969 crore Operational creditors are not
sales, stood at ₹813 focus on driving seller partners,” added Bahl. to operational creditors. part of CoCs.
crore in FY19, ris- Consolidated growth with a lean Mint reported in May that Essar Steel’s financial credit- The Essar Steel case pertains
ing 87% from revenue grew and capital-effi- Snapdeal is also in talks with its ors are primarily state-run to a 10-million tonne per
around ₹436.1 72% to ₹925.3 cient foundation rival Shopeclues for a potential banks, while its operational annum steel mill in Gujarat,
crore in FY18. crore in FY19 in the business. merger at a valuation of $200- creditors are vendors and sup- which became insolvent in
The company, pliers. August 2017, with dues of more
from ₹535.9 crore Our operating rev- 250 million. Previously, Snap-
NCLAT has asked the com- than ₹54,000 crore.
however, did not enue increased deal had acquired fintech com-
disclose its in the previous 87% y-o-y, with a pany Freecharge, which it later mittee of creditors to take the The highest bidder for the
expenses for FY19 financial year significant reduc- sold to Axis Bank. help of a reputed chartered asset was ArcelorMittal, which
in its statement to tion in the cost Snapdeal also claims to have accountant firm or legal firm to offered a resolution plan with a
the press. Snap- base. The com- over 500,000 registered sellers calculate the exact amount to cash payout of ₹42,000 crore
deal had cut its expenses by pany achieved a significant on its platform, having over 200 be distributed among each to be distributed among a
almost 77% year-on-year from milestone by achieving cash million listings on the market- operational creditor. clutch of financial and opera-
around ₹3,146.4 crore in FY17 to break-even in the month of place. The judgement had two tional creditors.

London: Tata Motors-owned Jaguar Land Rover (JLR) on

Tuesday said it will receive a £500 million guarantee from
the UK government to underwrite a planned £625 million
loan facility from commercial banks to develop the next gen-
eration electric vehicles and future mobility solutions.
“It will support JLR’s continued investment into research
Suzlon defaults on bond payments worth $172 million
and development of the design and manufacture of next gen-
eration electric vehicles and future mobility solutions,” a JLR Swaraj Singh Dhanjal
statement said. Earlier this month, JLR had unveiled plans
to produce a range of new EVs in UK as it prepares to offer
electrified options for all Jaguar and Land Rover models
swaraj.d@livemint.com
MUMBAI MFs meet on DHFL debt issue
T
from 2020. PTI roubled wind turbine
maker Suzlon Energy Neil Borate ICA, felt that adequate safe- also need a written assur-
Ltd on Tuesday said it neil.b@livemint.com guards for them would have ance from Sebi that they
Federal Bank June quarter net has failed to make a payment of MUMBAI to be put in the ICA. This is have no objection to us join-
principal amount of $172 mil- because, unlike banks, they ing the ICA. No such assur-
profit rises 46% to ₹384 crore
M
lion for outstanding bonds, due utual funds with represent unit holders and ance has been received so
in July. substantial expo- m a n a g e far,” a fund
Mumbai: Private sector lender Federal Bank on Tuesday reported The outstanding payment sure to Dewan money which The AMCs sought manager said on
net profit of ₹384 crore in the June quarter, up 46% from the corre- was part of a total bond issu- Housing Finance Corp. Ltd is given in safeguards and condition of
sponding period of 2017-18, owing to higher other income and net ance of $546.91 million, the The outstanding payment was part of a total bond issuance of (DHFL) on Tuesday sought trust to them. Sebi’s clearance anonymity.
MINT interest income. While its other company said in a filing to stock $546.91 million. BLOOMBERG adequate safeguards and “We favour as pre-conditions “An account
income grew 45% from a year ear- exchanges. Securities and Exchanges joining the of today’s (Tues-
to joining an
lier to ₹392 crore, its net interest “The company is working on Suzlon. The Toronto-based the Canadian company is in Board of India’s (Sebi’s) ICA in princi- day’s) meeting
income grew 18% year-on-year a holistic solution for its debt investment firm is working discussion with Suzlon’s credit- clearance as pre-conditions ple. The inter-creditor has been sent to
(y-o-y) to ₹1,154 crore . and continues to be in discus- with a financial adviser for due ors to restructure the outstand- to joining an inter-creditor recovery of agreement the Association
The bank also set aside ₹192 sions with various stakeholders diligence on Suzlon, it ing bank loans of more than agreement (ICA) proposed money will be of Mutual Funds
crore as provisions for the June in relation to its outstanding reported, adding that Brook- ₹11,000 crore ($1.6 billion), by banks to restructure the higher if of India (Amfi)
quarter, down 3.5% y-o-y. Shyam debt (including the bonds),” field proposes to start with buy- under a one-time settlement mortgage lender’s debts. DHFL survives as a going which is expected to for-
Srinivasan, managing director and Suzlon said in the filing. ing new shares issued by the plan, Bloomberg reported. The asset management concern. However, the ward it to Sebi,” the fund
chief executive, Federal Bank, said On 11 July, Bloomberg company, followed by purchas- In 2015, pharma billionaire companies (AMCs), at a terms and conditions must manager added. Mutual
the bank has been watchful of reported that Canadian asset ing stocks from the existing Dilip Shanghvi invested ₹1,800 meeting on Tuesday to be favourable to unit hold- Funds are unlikely to join
credit growth in certain stressed manager Brookfield Asset holders under an open offer, crore in Suzlon for a 23% stake, decide on proposals put for- ers since we are custodians the ICA without explicit
sectors, while retail continues to do Management Inc. is planning the people said. hoping to turn around the com- ward by banks to join the of unit holders’ money. We approval from Sebi.
well. SHAYAN GHOSH an offer for a majority stake in As part of the proposed deal, pany.
 MARKETS AND FINANCE WEDNESDAY, 17 JULY 2019
NEW DELHI 07

Why is government trying Rate cut hopes see bond yields

diving to lowest since Dec 2016
to kill off hedge funds? FROM PAGE 1
RAMESH PATHANIA/MINT

head of the tax authority in New Delhi has told share prices rise will happily overlook corporate dovish stance, also influenced
them they’re “collateral damage”. skulduggery, especially if the tycoons riding domestic yields.
EXPERT Offshore investors can always find other mar-
kets. What will onshore hedge fund managers
roughshod over minority shareholders make the
fund managers feel important by giving them
The next US Fed meeting
will be on 31 July.
VIEW do, except leave the country perhaps? Singapore access. At this rate, India’s abysmal governance
A $677 bn
“Domestic catalysts for
doesn’t tax capital gains; in India profits on cash standards will never improve. bonds are largely positive in
ANDY MUKHERJEE equities bought and sold within a year will be At $6 trillion, India’s household wealth is a manager
the short term, with yester-
spots buy
charged at 21%, up from 18%. Alternative funds fraction of China’s $52 trillion. Even so, the opportunity day’s downbeat trade numbers
Respond to this column at now have to withhold 42.7% of all income on country had 343,000 dollar millionaires this amid India reaffirming a slowdown in
feedback@livemint.com derivatives trading before they pass on the time last year, according to Credit Suisse Group sell-off domestic demand, making a
returns to investors. This is bread and butter AG. bit.ly/32tZgZv case for further monetary

I
ndia is killing off the one industry that can business for long-short hedge funds, which fre- For them, it’s important to have access to accommodation,” Radhika
bring badly behaving tycoons in line while quently use derivatives to mount leveraged bets. assets uncorrelated with stock market returns Rao, an economist at DBS
nudging savers away from an unproductive Worse, the ultimate investors won’t be able to set that they can replicate with index funds. If hedge Bank, said in an email from
lust for gold. That industry is domestic off that tax against any other business losses. funds die because of taxation, the rich in India Singapore. “Separately, June
hedge funds, which have taken seven years The Securities and Exchange Board of India, will be left with two sub-optimal options. “Off- retail and wholesale inflation
to reach $6 billion in investment commitments or Sebi, has always been suspicious of the source shore tax centres can breathe easy now,” says remained below target, while RBI’s monetary policy committee will meet from 6-7 August.
from nothing. By contrast, equity investment in of capital for hedge Krishna-Kumar. “India will remain an underde- core CPI inflation continues to
India by overseas financial investors is upward So much of funds investing in veloped market where only gold and property retreat mirroring subdued on the end of 2019, and further to narrower shortfall in the rain-
of $400 billion. private wealth is India from Singapore would be your alternatives.” demand pull pressures. Oil 5.75% by the end of March. fall, more easing is in the pipe-
Even that measly $6 billion figure for so-called
Category 3 Alternative Investment Funds (AIF) trapped in gold or Hong Kong. It
believes dirty
So much of India’s private wealth is trapped in
gold that any more will be a colossal social waste.
prices continue to seesaw on
geopolitical rumblings, with a
The median forecast in a line,” Rao said. “Two
Bloomberg survey is at 7.10% by announcements are due this
overstates the industry’s development. Some that any more money—proceeds of For a country that aims to elevate GDP to $5 tril- break above $70 per barrel the year-end and 7.18% by month—RBI capital frame-
managers of vanilla mutual funds now seek the will be a colossal crime, corruption or lion by 2024, from $2.8 trillion now, India needs needed to shake confidence in March 2020. work panel will shed light on a
AIF registration to avoid regulatory restrictions social waste tax evasion—comes risk capital to go into productive assets. Yet poli- the currency and yields. These On 16 July, Business Stan- quantum of RBI dividends
on what they can pay distributors for selling to back home from off- cymakers are jacking up tax rates on the one ave- cement our expectations of a dard newspaper (key for reve-
mom-and-pop investors. shore financial cen- nue for risk-taking they should be nourishing. follow-up 25 basis points cut in reported that The plan for an nues), followed
Alternatives that are meant for the rich don’t tres after being laundered. The money they collect will be chump change August, a fourth this year.” India’s first issue overseas bond by the liquidity
have such restraints. Rather than encourage a Whatever the rational basis of those fears, the compared with the cost of the hedge fund indus- According to Bank of Amer- of overseas sover- issue is likely to framework
community of investment vigilantes who target regulator’s efforts to set up from scratch a try’s arrested development. ica Merrill Lynch, RBI may cut eign bonds may reduce supply of r e p o r t (as
firms falsifying accounts or stealing from inves- domestic industry in alternative assets is being Cronyism thrives on finance—and only rates by an additional 75 basis be around $3-4 announced in the
bonds in India
tors, the Indian taxman is threatening to disband torpedoed by the taxman. “They may be unwit- finance can stop it. Without an industry that has points in 2019 if rain the rain billion with a July policy
it. tingly about to kill off the onshore hedge fund their back, which analyst will pore over obscure deficit narrows. Monsoon rain maturity of 20 and thus impact review); indica-
The increase to 42.7% from 35.9% in the tax industry that Sebi created, even before it has company filings; meet suppliers, customers, and has been 13% below normal so years. their prices tions of a high
rate on annual earnings over ₹5 crore begun to crawl,” Vijay Krishna-Kumar, head of regulators; and use LinkedIn and Google Maps far this season, according to a “ B e y o n d dividend contri-
announced in the 2019 budget has a more vocal IDFC Asset Management’s liquid alternatives to verify whether employees and facilities exist? Bloomberg report. August, we are bution coupled
victim: overseas funds investing in India. These investment, said. If nothing else, the domestic alternatives busi- With this expectation of holding out for another rate with signs that liquidity condi-
are seeing red. Often structured as trusts or asso- Stamping out short sellers will tilt an already- ness is worth saving because it can speak truth to deeper rate cuts, Deutsche cut. If inflation continues to tions will be kept favourable,
ciations, they too will have to pay the higher levy skewed playing field even more toward long- power and put its money where its mouth is. Bank AG expects the 10-year stay below 4%, helped also by a could trigger further gains in
that applies on all non-corporate income. The only investors. Those who profit only when BLOOMBERG bond yield to decline to 6% by favourable spatial spread and bonds.”

GOVT. OF NCT OF DELHI

EXECUTIVE ENGINEER (SW)-III
Sector-VII, R.K. Puram, New Delhi-110022
Phone No. 011-26167618
N.I.T. No. 17 (2019-20) SW III

S. Description Amount Put to Date of release Last Date/Time of receipt

No. Tender, Earnest of tender in of tender Through
Money and tender E-Procurement solution E-Procurement Solution
fee
1. Retrofitting of existing underground reservoir and Rs. 46,54,013/- 15.7.2019 05.08.2019
demolishing & construction of existing booster Rs. 93,500/- and Tender I.D. No. At 2.00 PM
pumping station at A-2 Safdarjung Enclave under Rs. 500/- 2019_DJB_176298_1
SW-III
Further details in this regard can be seen at (https://govtprocurement.delhi.gov.in)
ISSUED BY P.R.O. (WATER)
Advt. No. J.S.V. 176/2019-20 EXECUTIVE ENGINEER (SW) III
08 WEDNESDAY, 17 JULY 2019
NEW DELHI

REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE

BORIS JOHNSON
AN UNSUITABLE BOY
Britain will be taken even less seriously when the front-runner Tory MP steps into 10 Downing Street next week
GETTY IMAGES
Salil Tripathi
feedback@livemint.com
LONDON

T
he United Kingdom of Great
Britain and Northern Ireland is
about to have a new prime min-
ister chosen by the majority of
160,000 members of the Con-
servative Party. That electorate is less than
one-quarter of one percent of the UK’s
population of 66 million. The Conserva-
tives have only 312 seats in the 650-strong
parliament (one seat is vacant). The Tories,
as the Conservatives are known, have run
the government since the election in 2017
with external support from the Demo-
cratic Unionist Party, a pro-UK party from
Northern Ireland, the part of the UK riven
by the sectarian divide.
The election has become necessary
because Theresa May, the outgoing prime
minister, decided to resign after she failed
to secure support from parliament over
the terms she had agreed with the Euro-
pean Union (EU) over how the UK should
leave the EU, following the contentious
“Brexit” referendum of 2016.
That stalemate in the UK over leaving
the EU is profound. It seems comically
absurd that instead of holding a new gen-
eral election or calling for a new referen-
dum over how to leave the EU—if at all—
the Tories are replacing the prime minis-
ter mid-term, as if ruling the nation were
like managing a country club—electing a
new chair by polling members in good
standing, while an overwhelming majority
of peasants who are non-members are
clamouring for participation. The man
likely to take over from May is the 55-year-
old Eton- and Oxford-educated former
journalist Boris Johnson, a man uniquely
unsuited for the role.

UNLIKELY RISE TO THE TOP

T here is a surreal aspect to Johnson’s

rise. His paper qualifications apart,
journalists, bureaucrats and politicians
who have known him or worked with
Johnson are near-unanimous in their hor-
ror over his likely selection. Johnson is
presumed to be the runaway favourite
among party members. He secured the top
spot in the final runoff after outpolling his
rival MPs in a series of elections held “world king,” according to Sonia Purnell, uncertain. mint ent version of Trump. If Johnson becomes prime minister, he
among Conservative MPs. The man who his biographer. As James Wood in The But the danger of a “no-deal Brexit” is SHORT Much has been made of Johnson’s time will assume leadership at a time when the
hopes to stop him is Jeremy Hunt, the London Review of Books has shown, pri- real and its consequences can be cata- STORY as London’s mayor. London is a liberal city old model of leadership in the UK is lying
mild-mannered foreign secretary, who vately-educated elite students like John- strophic politically and economically. For and his success there as a Conservative exposed and devastated and a new one has
hopes his politeness and the appearance of son believe in their “effortless superior- one, it can unravel the Good Friday Agree- politician may suggest his cross-party not yet been born. Many Britons rightfully
possessing a pair of steady hands just ity”, taking for granted that high rewards ment of 1998, which has brought peace to WHO appeal. But London’s mayor has limited resented the power of the privileged
might sway the Conservative member- are theirs because of their natural emi- Northern Ireland, which now has a ‘soft’ powers; he is more of a cheerleader for the classes, but instead of replacing privilege
ship, which typically prefers stability over nence and position in society. Privileged border separating it from the Republic of With Boris Johnson widely tipped city. As mayor, he has claimed credit for with merit—something Thatcherites
chaos, which Johnson personifies. Etonian-Oxonians feel entitled and they Ireland. If checkpoints and passport con- to be the next British PM, predecessor’s ideas (such as the ubiqui- claimed they would do—the UK is revert-
But British politics is in uncharted terri- rely on Britain’s traditional reverence to trols return there, violence may flare up journalists, bureaucrats and tous bikes available for rent). He spent £46 ing to the older model of amateurish clev-
tory. Johnson led the campaign to leave the class system to do the rest. In his essay, once again. Equally crucially, Scottish first politicians who have known him million for a garden bridge that wasn’t erness.
the EU not necessarily because he dislikes Wood describes Johnson as one with “the minister Nicola Sturgeon has said she are near-unanimous in their constructed, £60 million on a severely Many of the current Tory leaders have
the EU—very likely he has no opinion on bigfoot stoop (he was known as ‘the Yeti’), would call a fresh referendum seeking horror over his likely selection. under-used cable car, and championed a the characteristics of the upper-class aris-
the EU—but because he astutely con- the bumbling confidence, the skimmed- independence. If Northern Ireland (which new airport on the Thames Estuary which tocrats of the past without their sense of
cluded that leading the ‘leave’ campaign is milk pallor, the berserk hair, the alarming voted to remain in the EU) and Scotland would have cost £100 billion and devas- noblesse oblige. They’ve discarded humil-
likely to boost and hasten his chances of air of imminent self-harm, which gave the (which too voted to remain) separate from HOW tated the environment had it been built. ity and introspection, opting for Ameri-
becoming party leader and prime minis- impression that he had been freshly the UK, what will remain will be a rump As for his diplomatic skills, the less said can-style showmanship, bragging of vir-
ter. In the process, he made outrageous released from some protective institu- kingdom, comprising England with Johnson is presumed to be the the better. He has equated the European tues they don’t possess and seeking intel-
promises during the referendum cam- tion”. Wales. But pro-Brexit voters are in no runaway favourite among party Union’s plans with Nazi Germany’s ambi- lectual approval by writing books that are
paign and substituted facts and analysis Johnson is eloquent, can be witty, and mood to listen. Recent polls among pro- members. He secured the top spot tions. He praised Syrian dictator Bashar ridiculed or unread. (Jacob Rees-Mogg,
with bluster and brio. has a vocabulary filled with Latin phrases. leave voters suggest that they would prefer in the final run-off after outpolling his al-Assad for reclaiming Palmyra while the clownish Tory MP who is an ardent
Johnson was loyal to himself, not to any His frequent appearances on television, in leaving the EU over preserving the union rival MPs in a series of elections held acknowledging that he ‘barrel-bombs’ his Brexiteer, has written a laughable account
idea. That’s not surprising: at Oxford, he particular, the current affairs comedy which keeps the four nations—England, among Conservative MPs. own people and tortures opponents. He of the Victorian era; Johnson has received
saw nothing wrong in seeking the support show Have I Got News For You, and public Northern Ireland, Scotland and Wales— glibly said that the Libyan coast could turn undeserving praise for his book on
of a left-leaning party to become president speeches where he contrives to look together. into Dubai and dismissed China’s great Churchill.)
of the Oxford Union, considered to be a dishevelled and disorganized have WHY power ambitions. He claimed Barack Johnson’s supporters claim—and
stepping stone to a political career. Toby boosted his popularity, as if he were a JOHNSON’S CAREER Obama held a grudge against the British hope—that a statesmanlike leader might
The Conservative party MP has
Young, columnist at Spectator who was character out of a P.G. Wodehouse novel.
Johnson’s Oxford contemporary and sup- Johnson strenuously stresses his inclu-
ports him, wrote recently, “He has been siveness. Alexander Boris de Pfeffel John-
E ven a cursory glance at Johnson’s
record as a journalist causes concern.
He was sacked from The Times because he
little time for detail, likes to
pretend that everything is
Empire because he was “part-Kenyan”.
And he insulted all of the Commonwealth,
saying, “It is said that the Queen has come
emerge from his misunderstood persona.
Former diplomat Walden is not so sure. He
writes: “At 55, few of us change, nor can
described as looking like a sheepdog peep- son—to go by his full name—had a Turkish had made up quotes. His supporters disre- easy for him, and expects the to love the Commonwealth, partly evolution occur in the mind of a man with
ing out from under an upturned colander great-grandfather, a politician called Ali gard his reports from Brussels for the bureaucracy to sort out the mess because it supplies her with regular cheer- no convictions.… For all those who fall for
of spaghetti. He has a thick mop of blond Kemal, and his former wife Marina right-leaning Daily Telegraph, where he he will undoubtedly create. ing crowds of flag-waving piccaninnies.” it, Johnson’s appeal relies on two things:
hair that Donald Trump would kill for. The Wheeler’s mother is of Indian origin. was the newspaper’s correspondent, as patriotic nostalgia and the illusion of effort-
striking thing about him as a 19-year-old Johnson has joined gay pride marches in hysterical entertainment. But those UNCERTAIN FUTURE less ascendancy. His supporters don’t want
student is that he was already the finished London when he was the city’s mayor and
article, whereas the rest of us were still spoken favourably of the city’s cosmopoli-
works in progress. It is not just that he was tanism. But Johnson has also embraced
reports vitiated the atmosphere, dripping
in a sustained way unsubstantiated propa-
ganda which showed European bureau-
carelessness jeopardised Nazanin Zaghari
-Ratcliffe, a British-Iranian woman, who
was in Iran on holiday. Iranian officials
W hoever becomes the next prime to live in the world as it is, with its chaotic
minister will have a major eco- globalism, market ruthlessness, shifting
nomic crisis at hand. The UK’s growth is populations and emergent nations. They
comfortable in his own skin. He had a divisive politics, called homosexuals crats as a bunch of humourless regulators held her on suspicion that she was a spy sluggish and several companies, including want to be somewhere else, preferably the
Churchillian sense of his own destiny. He “tank-topped bum boys”, and written a who wanted to decide what the shape and Johnson said she was there only to financial institutions in the City, have past. Closed Tory minds drift backwards,
gave the impression that at some point in vulgar limerick ridiculing an unnamed should be of a banana, the size of condoms, train journalists—a red rag to the suspi- decided to shut shop (as have some auto and Johnson’s showmanship has an old-
Britain’s future, at a time Turkish leader in a chal- or whether prawn cocktail crisps should cious Iranians. At her sentencing, the companies) or move time, end-of-the-pier
of national crisis, he lenge to provoke Presi- be allowed. (Johnson wrote the crisps judges noted that remark and her family operations to Europe. feel, with his pseudo-
would sweep in and save If Boris Johnson becomes dent Recep Tayyip Erdo- would be banned; that was simply not says that made her sentence harsher. (Her The next prime minister The UK’s growth is aristocratic persona,
the day. We are about to PM, he will assume leadership gan, for which he won a true). When older journalists warned family denies she was training journalists.) will have to earn the con- sluggish and several firms, replete with eccentrici-
find out if that was a nar- £1,000 prize. Johnson against making up stuff, he More recently, he refused to back Sir Kim fidence of markets. And ties and Wooster imper-
cissistic self-delusion or at a time when the old Johnson insists the UK ignored them, saying that the larger truth Darroch, the outgoing British ambassador yet, when Johnson was including financial institutions sonations.”
a historical premoni- model of leadership in the will leave the EU on 31 was more important than mere facts. to the US, after his cables critical of Presi- told about the impact of in London, have decided to Johnson has never
tion.” Other journalists October, come what As a politician, he was fired from the dent Donald Trump were leaked. Brexit on British busi- shown strategic vision
who have known him are UK lies exposed and a new may, and if parliament shadow cabinet by then party leader Mich- Explaining his appeal in spite of such a ness, his pithy response shut shop or move and has allowed his ora-
less sanguine. Martin prevents him from doing ael Howard after Johnson had lied over an record, former Telegraph editor Charles was, “F*** business”. It is tory to mask his hollow-
Wolf of Financial Times one is yet to be born so, he has not ruled out affair with another journalist. He has done Moore has said that the Tories are enraged the kind of statement operations to Europe ness. He has little time
calls him “a serial fanta- proroguing the parlia- his best to shun debates with rival Hunt in by left-wing sanctimony and they “long for you might hear from a for detail, likes to pre-
sist”. George Walden, a former diplomat, ment—a step which would take the UK the lead-up to the current poll, appearing something that is more subversive and dif- left-leaning, Bennite Labour Party politi- tend that everything is easy for him, and
calls Johnson “a remorse-free liar”. John- into uncharted territory for which there in only a few, to avoid making gaffes, and ferent”. Johnson, he says, is “the lord of cian, not a Conservative. A no-deal Brexit expects the bureaucracy to sort out the
son’s former editor, Max Hastings, has said are almost no known precedents. Former ducked reasonable questions from jour- misrule”, and the party loves it. In an age would cost billions of pounds in lost mess he will undoubtedly create. The UK’s
he wouldn’t trust Johnson on anything, prime minister John Major, also of the nalists (such as how many children he has). where politicians have called facts fake investment, may crash the pound and influence is diminishing rapidly. It will be
including something as simple as his Conservative Party, has said he would seek Then, there is his bigotry. He has news and who speak of fantasies as though depress property prices. But either John- taken even less seriously once he steps into
response to the question if it was Monday judicial review if Johnson suspends parlia- described Muslim women in hijab as “let- those are real, Johnson is the man whose son has not thought about it or he seems to 10 Downing Street.
or Tuesday. mentary rights by proroguing the house, ter-boxes”. During his inglorious, brief time has come not a day too soon. He is a think that such a scenario is improbable or Salil Tripathi is a writer based in Lon-
As a child, Johnson wanted to be the and whether his manoeuvre succeeds is tenure as foreign secretary under May, his more articulate and grammatically coher- implausible. don.
 PROPERTY
NORTH DELHI
200 1600 yd Kothi & Flats BD Estate
/ Civil Lines/NE corner 375yd main
Rd/ Deals famly settlement deals &
collaboration. Many other options.
Neelam M.Sc.B.Ed 9873255806
BUNGLOW 800 sq. yard Main Road,
Ashok Vihar for Sale. Contact :
9312153939, 9313138832
FOR SALE Freehold Society Flat
MIG 1st Floor Very Spacious East
Facing Excellent Location, Fully
Furnished Sector-14, Rohini
Cont: 9990999997
GF BUNGLOW Rd/ Booking Tagore
Park 250yd NE Corner/160yd Kothi
& flat Otram/Hudson line/Derawal/
Gujranwal/125yd &+Ashok Vhr& aro-
und. Neelam M.Sc. B.Ed 9873255806
250 SQ.YD (2250 Sq.Ft) SHIG,
Drawing + 4 Bed + 3 Toilets +
Parking + Lift. 1.85CR, Sector-23,
Rohini. Bisht Properties Pvt. Ltd.
9650045100, 9999784468
FOR SALE: 5200 sqft covered area
floor in Badli Ind Area (Govt Auth.
Ind. area) Elect. Connection high
qlty const, 2min from Samaypur
Badli Metro # 9999072729.
ROHINI 1981 Allotment Scheme.
Zeqon Buildtech (P) Ltd. Best Deals
for your Plots/ Expert Liasioning
(Mutation /Possession/ Lease /
F'Hold) 9718888224 / 9891272828
EAST DELHI
COMMON WEALTH Games village
4BHK + SQ apartment 2524 sqft with
2 car parks, 3 side park facing for
sale. Contact Ajit Sahai 9810060315
PLOT IN Preet Vihar For Sale
231 sq yards Opp Green Belt Serene
Location 2 Side Open Suitable
For Builder 9810002667
WEST DELHI
JANAKPURI 4 Bedroom, D/D,
Ground, First Floor 217 Sq Yd Corner
3 Side Open, New Construction Stilt
Parking, Lift, Immediate Sale.
Naresh Chaudhary 9911070552
RAJOURI GDN lavish kothi flrs lift
n prkg 160y 1st 2nd crnr 1.65 200yd
1st 2nd 2.5c 200yd 7.5c or 275 8.5 ko
thi cnr 300yd kothi,flr kirti ngr 500y
1000yd 1.2.3rd 7to13cr 7999998789
PASCHIMVHR PNJBIBAGH &
For Surrounding Areas Available /
Wanted Flrs / Kothis / Commercial /
Rented Prop / Collaborations.
Chawla Estates: 9810973456
JANAKPURI/ VIKASPURI:
Buy/ Sell/Rent Floors, Flats, Kothis
80, 150, 225, 325, 419 sq.yds. Also
Wanted Collaboration. Contact:
Bakshi Properties 9810578788
WEST DELHI
WANTED RESI. /Commercial Pusa
Rd Karol Bagh, New/Old Rajinder
Ngr-Plots/flrs/Collaborations-R-blk,
Double storey or any block. Vaibhav
Hannda 8888802000/9811931333
OLD RAJINDER Nagar Corner
Two Storey House, Best Location
Immediate Sale and Possession,
Sufficient parking. # Cont Kapur
Property 9811094229/25853592
80 SQ.YDS Newly Built Flats
available for Sale in Janakpuri. Park
facing with lift & Parking. Ready to
move, Freehold, Clear Title. Loan
available. Contact : 9560076258
OLD / NEW Rajendra Nagar, Pusa
Road, N.E.A, Wanted/Available
Plots, Floors & Commercial Prop.
Ready/Booking. Immediate Pay-
ment. Cont: R.C Estates:9873560300
FOR SALE DDA Janta Flat Expanded
to 3 Floors Freehold, Hari Nagar,
Opposite Chunni Lal Public School
New Delhi. Contact 9810066653,
9212266653
CENTRAL DELHI
FOR RENT/SALE
Beautifully
Furnished office
space 3420 sq ft.
in Gopal Das
Building, 9th Floor
Contact- Owner
9810035127
9312255553
FOR RENT/SALE
Beautifully Furnished
Independent office
space 900 Sq. Ft.
in Gopal Das
Building, 9th Floor
Contact- Owner
9810035127
FOR SALE/RENT, Karol Bagh,
Main Road Facing, MCD Market,
8x18, High Footfall, Excellent
Location Cont: 9990999997
WORLD TRADE Centre
Connaught, Prime Office Space
Upper Ground Floor 2613 Sq.Ft.,
Front & Garden Facing. Sale/Rent.
Contact: 9810203614, 9810031460.
SOUTH DELHI
DEFENCE COL. D block Commer-
cial flrs. 333 yd.on Booking Bmt,
GF, FF, SF & TF +Terrace lift ,Stilt.
Poss in 6 months at very reasonable
price.Gagan # 9971298498
BUNGALOW'S FOR Sale: Malcha
Marg & Jor Bagh, 375 sqyd fac. park,
Vasant Vihar 1000 sqyd. Also Shanti
Niketan 400 sqyd. Confirmed deal.
Salwan: 9810034566, 9810062871
5 BED 5 BATH D/D For Sale at Mal-
viya Shivalik Rd. 3rd Flr, Excl. Lift,
Balconies, Nr. Parks, 1Min Metro,
5 Min-Saket Malls, N.E. Entrance,
New Interiors. 2.64 Cr. 9891572424
KAILASH HILL (250) Immd.Sale
Third/Second Floor Airy Three
Bedrooms Drawing Dining Lift
Parking Terrace Reasonable Price
Call 8447600000
FOR SALE DDA flat in Munirka
Vihar,secure gate community
2bhk free hold, 1st flr1000+ft. Big
balcony,+ scooter garage Rohit
Jain, A.K.Jain & Asso. 9811022044
ANAND NIKETAN 193 yds. Second
Floor, 3 Beds D/D, Park Facing,
Peaceful Location, Original Booking,
Brokers Welcome. Developer:
9810002075, 9899534878
FARM HOUSE: 1 Acre, 2.5, 5 &
Above. 1000,2000Yds at Westend
green,vasant kunj,sultanpur,gad-
aipur,DLF chattarpur,dera mandi.
Ravi Bhatnagar 9810081507
GOLFLINKS INDEPEND-
ENT Bungalow, 750 Sqyrds,
Anand Niketan, Bungalow
1000 Sqyrds. PropDeals :
9810678184, 9871863399.
SOUTH DELHI
SAFDARJUNG ENCLAVE,
B-5/179, 240 Sq. Yd. North facing,
Vastu perfect, 1st floor 2 car parking
with Completion Certificate.
Hemender Sharma 9811078311
GULMOHAR PARK 300 sq yds
Ground floor, brand new, park fac-
ing, crnr N/E facing, ready to move
& Third floor with terrace, booking.
Sharmajee 9910061255, 9810061255
HAUZ KHAS A-23 Ready to Move
Wide Road -400- Third Floor /
Exclusive Terrace Garden Specious
4 Beds D/D with 3 car Parkings.
Rajesh 9810209711
NITI BAGH 800y Bmt+GF Prk facing
Mayfair Gdn 800y FF/TF Park Facing
Geetanjali Encl 900y FF 5BR's Ready
G.K 1000y all Floors Ready / U. Cons
Ambica Properties(Rgd) 9810120612
A-7, FRIENDS Colony -
Ground Floor 3 Bed, D/D, &
Basement, Brokers Welcome,
Rajesh 9810014771, Amrit
9810019279
VASANT VIHAR new 620yd Gro-
und bmt @15.5 & TF @13 & 400 yds
GBmt @10.5 ,FF@7. 260yd new flr @
5.7 & bmt@1.10. Safd encl 300yd pkf
TF + terc @7.11 . Ravi 9818935156
ANAND NIKETAN 950 yds.
Basement + Ground Floor, 4 Beds
D/D with Independent Lift &
Driveway. Also First Floor.
Developer: 9810002075
SAKET BLDR Floors/ Kothis 200 to
500 sqyds Ready/ under const. Also
200yds FF Price 2.75Cr. Also livable
kothi in Shivalik. 9910023239
Shashikant 9811654291 Rajender
DEFENCE COLONY 325 yds, Base-
ment + Gr. Floor, 4 Beds D/D, Indp
lift. Also Third Flr with Terrace. Pea-
ceful Location. Under Construction.
Developer 9810002075,9899534878
SALE BUNGALOWS Lajpat Nagar-
II, 312yd 2-1/2 Storied Corner Park
Facing @10.50Cr Also; Safdarjung
Enclave 300yd 3 Storied Liveable
@16.75Cr. Sanjay Malik 9810039071
GULMOHAR PARK 500 sq.yd 3rd
Floor with entire terrace Brand new
park fac. vastu perfect huge 4BHK,
D/D, powder room, fmly lounge, SQ,
A/C,PBU, 2car prkg. Call 9810113868
GREATER KAILASH Part-2 ,
S-Block. 300 Sq.yd Villa for Sale.
Contact : 9811715530.
GREATER KAILASH-2
Available on sale Basement Area
850 sq.ft., newly constructed with
toilet and pantry @ 65 lac. Call
Owner 9810011833, 9810078212
GREATER KAILASH 300Yds
Top Flr + Terr. Gdn. 4Beds D/D
Lounge Qtr. Parking Lift N/E Fac-
ing 7Star Const Going Cheap Pav-
neet 9811036030, 9999926224.
SOUTH DELHI
SAFDARJANG ENCLAVE Flats
Ready/Under Construction 200 sqyd
GF, FF & TF + Terr., 240 sqyd SF also
Panchsheel Encl. 265 sqyd GF & TF.
Salwan 9810062871, 9810034566
HAUZ KHAS 500y FF/TF 6.50/
7.50cr; Panchsheel Park 311y TF with
Terrace 6.5cr; Green Park Ext. 500y
SF 7.65cr; P'Sheel Enclave 370yd
TF +Terrace 5cr. SR 9999996725
GREATER KAILASH II
3 Bedroom, D/D, 300 Sq Yd
Second Foor, Fully Furnished &
Lift. Contact: 9911070552
GREATER KAILASH-1, 500y East
Fac Sept.D'way FF top location, Hauz
Khas 500y TF wd Terrace Sept. Prkg
attractive price Vasant Vihar 600y
Corner. Raghav Chopra 9953771878
G.K. 9CR 500yds New Const Bsmt+GF
Duplex 4 Beds with Sep. Lift/Driway 5
Cars, also 1000yds 11Cr. FF 5 Beds
with Sep. 4 Car Park 9811654291
Rajender 9910023239 Shashikant
BOOKING : Malcha Mrg 800y FF;
Saket 250y wide rd All Flr; Sundar
Ngr 867y SF with Ter 25cr; Vasant
Vhr 400 Cnr P/F All Floor. H.Khas
270 GF+Bmt 4.5. SR 9999996725
DLF CHATTARPUR
1 Acre & 2.5 Acres
Farm House.
both are fully
Developed top
location &
Regularized
(LEGAL)
farmhouse
with Gym
swimming pool.
East Facing.
9811141503
DEFENCE COLONY Second Floor,
3 Bedroom, D/D, Stilt Parking with
Servant Quarter, Lift. Contact:
9911070552
KALKAJI, ND-19, 3BHK, N/E, G.F.
Indp. 170 Yds. D/D, Mdlr Ktch, Piped
Gas, 4 AC, Porch, Ft/Bk Balc, Excl
Cond. Wdn Flrs, No Brkrs. Behl:
011-41634422, 9818844220.
BOOKING : P'Sheel Prk 800y TF +
Terr 16cr; Hauz Khas Encl. 500y P/F
GF+Bmt 13cr; Gulmohar Prk 500y
Bmt+GF+TF+Terr.; GK 1000y Bmt+
GF+TF+Terrace. SR 9999996725
SHEIKH SARAI-I DDA SFS Flats:
G.Flr 3 BR/DD+Scooter Garage &
F.Flr Renovated 3BR/DD also Corner
2nd+3rdDuplex, 3 BR/DD+Scooter
Garage. 9811191901, 8447888784
LAJPAT NAGAR-II, Near Ring
Road, Metro Stn. Newly Built Ground
Floor, 100 Yds, 2BHK, Lift, Parking,
Facing Park. Contact # 9810238617.
PVT BLDR Prem 3 Bed & Bath HK
Aptmt, Cvrd Car Park, Servant Qtr,1st
Flr, Alaknanda. Possession
Immediate. Contact: 9949552200,
6302689774
FOR SALE, South Ext-2, Corner
Floor, 233yd, 2nd floor, 3BHK
with lift, car parking, excellent
location @ 2.50 cr. Call
# 7838871113.
DEF. COL. 325yds 7.25Cr. Nego. New 4
BR. 4 Car Sp Driway & 325yd
Park/N/E face Bsmt+GF Dup.with Sp
Lift Driveway 4 Cars 9811654291
Rajender 9910023239 Shashikant
SOUTH DELHI
ANAND NIKETAN 300- Ready
to Move Basement Ground
Interconnected 3 Beds D/D Suits
Professionals Also -200- Third Floor
with Terrace. Rajesh 9810209711
HAUZ KHAS Encl. 534yds, SF & half
terrace, 4BHK, lift, 3 SQ, 1 car pkg.
1997 Const. @ 5.5Cr., wants old flr
& Kothi in S.Delhi. Kanika Homes
9810572753, 9811792753
SUNDAR NAGAR 870 sq yards,
Independent Bungalow, 3 side
corner, Park Facing, built up 11000
sqft., freehold, clear title. Ashok
Kapoor # 9810115477.
SAFDARJUNG ENCLAVE 300y
Ground floor with basement. Park
facing. Also 400y floor Park and
corner. 220/240y Park facing floors.
Puneet Bhogra 9810417610
KOTHI : Golf Links 375 P/F 48cr;
H.Khas Enc. 670y P/F 40cr; P'Sheel
Prk 800/600y 50/30cr; GK 217 P/F;
Anand Lok 400 P/F 28.5; Sundar Ngr
867 Corner P/F. SR 9999996725
MAHARANI BAGH 200 Yds, Kothi
for Sale, North-East/ Park facing,
Crystal Clear Title, Peaceful Location
Suits Self Users, Reasonable Price.
call 9810491640, 9818062668
Farm House
Land Sale in
Gated Complex
Next to
Mallu Farm.
1 Acre to 5 Acres
Clear Title in
Beautiful
Complex
Chattarpur
Main Road.
9811141503
GK-1, 300, All Floors, New, Ready,
Park Facing, 4 BR, Stilt / Lift,
Excellent Quality and Location,
Many More Options Available.
Kunal Gupta: 9999022944
ANAND NIKETAN 400
Liveable House @ 23CR
Taj Appts 3 Beds @ 4.75cr
Aman Bajaj 98100-81588
GAUTAM APARTMENTS, Gul-
mohar Park SFS Freehold, GF, 3BR,
3 Bath, U/G water tank, all redonem-
arble flr. Reserved parking, park fa-
cing. cont. Rakesh Ji # 9810078614.
GREATER KAILASH-III (Masjid
Moth-1), Sale 4 BR, D/D, 2000Sq Ft
DDA Corner Flat No.1B, FF, Facing
Main Rd Panchsheel Enclave,
Newly Renovated, Suits Advocates,
Arch, CA, Consultants-8178101573
OKHLA INDUS. Area Ph-I, II, III
Mohan Cooperative, Sale/Purchase/
Rent/ Rented reasonable price/ 600
yds sale Okhla-I, F'Hold. Manral &
Asso. 9810073960, 9899424066
RENTED TO MNC Co. in Pioneer
Urban Square Golf Course Extn
Gurgaon Area 1236 sqft Rent 93K
Per Month Sale Price 1.71cr.
Call Owner 9810404394
KOTHI GK-1/2, 208/300yds,
9.5Cr-15Cr, East & Park Facing,
EOK, Park Facing, E-BLK, CR Park,
233/400yds Corner, I-BLK.
Call# 7838871114.
GULMOHAR PARK 500 Yds crnr
Prk fcng bsmt. & GF 5 Beds D/D Pvt.
lift, pvt conceirge, with sunken lawn,
sept. D'way for 5 cars, C.C. obtained,
Ready, 2 s.qtr. Pradeep 9810113868
SHANTI NIKETAN 400 -
Independent House, Rajesh
9810014771, Amrit 9810019279.
GOLF LINKS 375 Sq.Yds
Liveable House 5 Beds
@ 50 CR (Full Cheque)
Aman Bajaj 98100-81588
SOUTH DELHI
GREATER KAILASH-II, 300yd
Park facing first floor 4bhk. 250yd
New Corner second floor. 400yd
booking FF/SF park facing A+ specs.
Kanwar 9560085558.
KOTLA MUBARAKPUR FF 3BHK,
SF 4BHK 150Yds Each, 3rd Flr 3BHK
+ Interior 200Yds, Shops GF 475 &
1800Sft., Bsmnt 200Sft. FF 150 Sqft.
Owner # 9999462602, 9999611320.
ANAND LOK 400 sq.yards Second
Floor with entire Terrace Garden,
Park Facing, Vaastu Perfect Huge
3 BHK, D/D Study, Powder Room,
Lift, A/C, 2SQ Details. 9810113868
SAFDARJUNG ENCL.
300Yds Entire Floor 4Beds D/D
Lounge Qtr. Parking Lift Park N/E
Facing Ready Going Cheap Pav-
neet 9811036030, 9999926224.
GULMOHAR PARK/ Defence
Colony 300/400/500 Sq.Yds Corner
Park Facing New Third Floor with
Terrace Ready/ Booking. Contact
9810066309, 9910006475
SHOP CR Prk GF rnted 44000 @1.30
Okhla-3 new SF(630)y rntd 4.50L 8cr
Okhla-3 (630)y Plot Park facing 12Cr
Okhla-I(400)y plot frihold 60'rd 4.5
9810017982, 9810364472 Bahlsons
ANAND LOK / Neeti Bagh / Defence
Colony 300/400/500 Sq.Yds First /
Second/Third Floor with Terrace
Park Facing Ready/ Booking.
Contact 9910006475, 9810066309
UDAY PARK 220y First floor.
Corner. 1500ft. 1 Parking, lift,sq.
Corner and wide road. 2.90cr. Value
for money. Safdarjung 235y Ground.
Puneet Bhogra 9810417610
PRIME LOCATION Pamposh Encl,
450yds, FF, New, 234yds, GF/FF,
Corner, 700yds, FF Also GKE-1,
400yds, TF with Terrace @5Cr.
Call# 7838871114.
LAJPAT NAGAR First Sale/ Rent
Commercial Road 900 SFT F/F
2 BHK F/H Ample Parking Close to
Metro, Ready to Move. Contact:
9313359890, 9899091999
VASANT VIHAR, 600 sq.yds, Wide
Road, Original Booking Third Floor
with Exclusive Terrace. For Details
Contact: Salwan Infratech & Realtors
LLP: 9810062871, 9810034566
GK-I, 303 yds. Basement + Gr. Floor,
4 Beds D/D, Indp Lift / Driveway,
Corner, North/East fac. Also 3rd
Floor+ Terrace. Under Construction.
Developer 9810002075,9899534878
SALE SHOWROOM Begumpur
S. Delhi GF+ LGF 675 ft each, Vasant
Kunj flat B-blk, 2nd flr, 4 BHK,
Shivalik GF, 3rd+ Ter. Panchsheel
500y FF/SF # Saluja@ 9999904543
E-1, GREATER Kailash Enclave
Part–I, Second Floor with 50% Terr-
ace, 250 Sq.Yds. Freehold, 3 Side
Corner, Vaastu Oriented. Dheeraj
Nathani 96543 29909, 98115 09552.
SHANTI NIKETAN- 400- Corner
Park Adjoining First Floor Specious
4 Beds D/D Separate Driveway &
Lift also -400- Basement / Ground
Duplex. Rajesh 9810209711
SALE RING Road Lajpat Nagar 800y
total Cheque, Greater Kailash-I, 325y
Corner Park Facing total Cheque,
Prithvi Raj Road 1 Acre. Kumra
9810002103, 9811310467, 41414108
VIKRAM VIHAR (128) GF with
C/C 3 bed 3 WC-Lift/stilt/Cnr/new,
GK1(208) SF&TF with roof Lift/Stilt
@ 2.50/3.00cr, Saket (250) wide
road TF+R@4.10 cr - 9818-888-333
SUNDER NAGAR 867 Sqyrds
Bungalow, Modern Interiors,
Ideal for Self Users. PropDeals
9871863399, 9710678184
VASANT KUNJ Flat For sale
4 Bedroom D/D Ground First
Corner Flat on main road newly
renovated marble flooring wood
work # 9350594143, 9818211191
GREATER KAILASH-I Ranted
Shop in Sale, Rent Area 275 Sq. ft.
Ground Floor, Corner, Commercial,
Near M-Block Market, Atth Toilet,
Front Parking. 9911070552
GULMOHAR PARK corner park face
bsmt+ GF 4 beds with sep lift and
parkng 5 cars. Also Sarvodaya encl GF
4Beds with prkng 4 cars. 9910023239
Shashikant 9811654291 Rajender
NURSING HOME 7000sqft Vacant
and freehold at DDA Community
centre Zamrudpur Kailash colony
Ext. New Delhi ph: 9811078319
Email: delhi.rohatgi@gmail.com
GURUGRAM
2BHK FLAT RPI DLF-IV Gurgaon 22
Floor for sale. Immediate Possession.
Genuine Buyers only. Call/whatsapp
9108660555. Brokers Excuse.
PRE-RENTED OFFICE Space
Required: Budget 4 Cr. To 5 Cr.,
Location: M.G.Road and Golf Course
Road Gurgaon. Call: 98990 30811.
FULLY FURNISHED Commercial
Office Space for Lease Available@
Centrum Plaza, Golf Course Road,
Area-14000-20000 sqft. Broker's
Exc # 8447097773.
MAPLE HEIGHT, C-Block, Sushant
Lok Ph-1, Gurugram, Available on
4th Floor, 2 Bedrooms attach bath,
D/D, 1 Car Parking space. Immediate
Sale. # 9810034566, 9810062871
BUILDER FLOORS 3,4 & 5 BHK
in DLF-1/2/4, South City-1 & Sushant
Lok-1, plot SZ 200-250-300-360-
500 Sqyds @ 1.25 Cr onwards.
Call # 9999973766.
RENTED SHOP For Sale - Big
Bazar, GF, Sohna Road, 203 sqft,
Rent 13,700 @ 5.50%. Contact
A & S Realty 9811484442.
FOR SALE DLF Belaire Golf C
Road,4200 sqft, 4 Bedroom Vastu
perfect / 5 specs O.C Realtors
V.Nagpal ;M: 9810677191
DISTRESS SALE in Society Shop
size 562 sq ft in M3M Merlin Sec- 67
Gurugram Market Price 22000/- psf
offer Price 18000/- psf. Rent
expected 100/- psf call 8287556747
GOLF COURSE Road, TDI Ouranias,
Highrise Apartment 4250 sqft, 4 BR,
Attached Bathroom Drawing/Dining,
Servants Room, Pool facing, Immd.
Sale. Rahul Kaushik 9899215980
DLF CARLTON Estate Condomi-
niums 1640 sq.ft 4BHK, First Floor
Fac Inner Lawns. Surender Arora-
9811151888, Parminder-9891777111
Site Visit on 13th July 12-5 PM
LUXURY BUILDERS floor in
Sushant Lok 1-215sqrd, Malibu town-
360sqrd,DLF-2/400sqrd. 3bhk, 4bhk
1.5cr onwards, as per vastu. R D
Builders 9818338381, 7011447858.
DLF − SUSHANT LOK
SUSHANT LOK-I Plots 215 yd@
1.30k,300yd/North@1.30k,418 yd/
500yd, East facing in A Blk @1 lac,
813yd/ East, park@95k. Sabharwal
Asso. 9810303098,9958492130
PACE CITY (Sector-37/ near
Hero-Honda Chowk) 1155 meter
industrial plot for sale (reason-
able price). For further details
kindly contact 9811131131
INDUSTRIAL UNIT at IMT
Manesar Gurugram on 4050 Sq.
Mtrs. Plot N/East Facing, Corner,
has 80,000 sq.ft. Builtup On
Sale/Lease. # 98-118-118-80.
UDYOG VIHAR Phase-5 (be-
hind India bulls/ adj NH8) 450
meter building for sale covered
area 12000 sft. For further details
kindly contact 9811131131
DISTRESS SALE/ DLF-lV:
Floors OR Entire Kothi 360y,
Basement, G.F, F.F & S.Flr, Nr.
Galleria Mkt., Very peace location.
M.K #8178522070, 9810778950
DLF BELLAIRE, DLF the
Crest, The park place, M3m Mer-
lin, M3m golf estates, Ahluwalia
Estate consultants 8010080868
DLF ALAMEDA Plots Avble at Best
loc-250/538/700 sqyrd St.-A1,A5,A8
B2,B3,B4,C2,C3,D2,D4,D1,D8 North/
East & Park. 58k P.S.yd onwards.
Sabharwal 9811196453/9811196843
SALE DLF-III: Area 1022 Sq
yd 18 mtr Wide Road Nathupur
Road Rate 11.50 Cr. Contact
9999769990, 9999756083.
DLF, SUSHANT Lok, S. City, Buy/
Sell Plots, Houses, Builder Floors,
Shops & Offices (vacant & rented).
Contact Fairdeals (A Real Estate
Consultancy) DLF-I. # 9810014398
UDYOG VIHAR Phase-5 (near
Trident/ Oberoi Hotels) 100 yds
building for sale, wide road/ East
facing (A-type), best for office.
Kindly contact 9811687247
UNITECH BUSINESS Zone Nirva-
na Country, Golf course Ext. Rd office
Space 1500 Sq Ft Very Tastefully
Furnished For Sale. Lalit Maini &
Associates 9818247170, 9811089079
CORNER PARK facing 300 sqyd
well maintained Kothi for Sale in
Sushant lok Ph-1, all ac fitted.
for details contact Mr. Jain #
9810045895
ADANI FLOORS New Launch @
Gurugram's Golf Course Extn.
Rs 1.68 cr onwards. Rera approved.
Possession 27 months. Book Now.
Deepak Estate # 7042772403.
APPROVED COMMERCIAL
Plot Palam Vihar Plan Sanctioned,
suitable for Retail, Office, Hotel,
Guesthouse, Service Apartments,
Banquet Hall. Contact: 9910990825
DLF- II New Builder Floor 215
Sq.yd Plot with stilt parking & Lift
East facing J Block prime location
@1.78 Cr only genuine buyer call
9873068888, 8743068888.
PARK PLACE
9873654274
9999388078
BUILDER FLOORS 3/4/5 BHK
Plots, Duplex Kothi 5/6 BHK, DLF
Phase -I, II, III, IV, S.Lok-I. For More
options: 9873273997, 9212216994.
DLF − SUSHANT LOK
LUXURY 3RD floor with terr. Gdn.,
C-526 SL-1, 502 yds, 18mtr wide Rd.,
4BHK, lift, Italian Flooring, D/D, AC ,
SQ, 3 car park, brokers wel. Owner
9871345678,9811173232,9810371234
@1.25 CR Emerald floors 3bhk
SF, @80Lac Astaire Garden 3bhk
FF, @94Lac 1250 Sq ft Office Nir-
SOUTH CITY-1 Sale-Duplex Kothi vana Courtyard, @9811030554,
properties@thegurugram.com
North West Facing 500 Yd, Power
Backup with AC, Plot 360 Yd 12 Mtr
Road. Shah N Baadshah #
9999914266 // 8800704030
ATTRCTIV PRICE Flrs DLF II- 250y
3Bhk lift stilt SF+T @ 2.25cr/ 300y
3Bhk FF @ 2.50cr. Nr by NH8/ DLF IV
DLF-IV 270Y North 360y North/ 500y very spcious 4Bhk lift 2car pkg
East 500y north/west/gated. @2.75cr. Saudagar Prop 9718511207
Sabharwal 9810099171,
KOTHI FOR Sale Sushant Lok-I,
9810303098
A Block, Gated, 300 yds Designer
Duplex, 6 BHK, Sunken Grdn, East
facing, well maintd, exel Loct. Nr.
Galleria, @6.25. # 9899999468
SUSHANT LOK-I, DLF: Luxurious
Builder Floors: 215 yd @1.30 Cr,300
yd @1.80 Cr,418 yd @2.40 Cr+.
Stilts, Lift, near Metro, North & East
facing. 9911441118
RENTED
Fareportal 64,300
We Work 1,15,500
Google 1,51,000
Airtel 1,60,000
KIA (Car Showroom)
2,12,500
Axis Bank 2,24,000
Sagar Ratna 3,26,000
One on One 500/1000 Sq. Ft. AVAILABLE ON Resale- 3bhk
with SQ, and store area 2900Sqft
STARHSHINE Tata Raisina Residency sector-59
R E A L T O R S price 2.55 cr. Call 9810011833,
9958681717, 9212357993
8368800700
LUXURY 1ST floor L-4/5 , DLF-2,
300 yds. East facing, 3BHK , Lift,
Italian Marble , Split AC , Car Park
And Sq On Stilt. Peaceful Location.
Owner 9871345678
DLF THE Crest, Golf Course Road ,
Sector-54, Gurgaon,Premium Luxury
4 BHK,3529 Sq.ft. Aravali Sun Facing
Apartment, Ready to Move in, For
Details : 8447107198 & 9810554213.
300 SYD DLF-II Duplex House
well maintained 5 bhk nicely buil-
dup North East facing and many
more options Call Ahluwalia Es-
tate Consultants 9811179706
ORCHID GARDENS (Sec. 54) Golf ESSENCIA 250 syd Corner &
Course Road, 3BHK+Study for sale.
Park Facing plot C- Block and
fully finished air-conditioned Sun &
300Syd E & F- Block. Ahluwalia
Park facing with quality lawn.
Estate Consultants 9810417349
9810187710, 6002891404
DLF-1,2, 500YDS corner East
Facing 12mtr @145 ,400yd Pair
@ 145, 316yds East facing 12mtr
@ 130. Sabharwal Associate
9810026076
DLF-I 500 yd plot (A-48/28)
N/E 18 mtr road @ 1.45L per yd/
Sushant Lok-2 500 yd D-blk North
12 mtr @ 75000 per yd & E-blk @
68000 per yd. Call 98100-11187
DLF CITY 500 yd on ashoka crescent
/500 yd NE 9 Mtr/500yd NW Park/
316yd NE 12 Mtr/200Yd North, All at
reasonable price. Lalit Maini & Asso-
ciates 9811089079, 9810889079
DLF- IV 360 Sq.yds. Confirm
Plot for sale wide road East facing
@1.50 lac per sq yd Oly genuine
buyer. Call 9873068888,
9999769990.
DLF PHASE-II adj MG road
MAINTAINED KOTHI Avlbl 300y 300 yards old structure for sale
M-blk East dplx/250y East floorwise/ on Dakshin Marg (wide road/
300y K-blk North-East Duplex/400y commercial location). For further
N-blk East duplex/500y duplx J-blk details contact 9811131131
@ best price Saudagar 9868033463
 EXCLUSIVE FROM

10 WEDNESDAY, 17 JULY 2019

NEW DELHI

‘RBI likely to cut lending rate ‘Firms are shifting to digital from a
traditional outsourcing portfolio’
by 25 bps in its August policy’ Latha Venkatesh, Sonia Shenoy & Anuj Singhal
CNBC-TV18

S
teve Hall, president, ISG Emea, says tradi-
Latha Venkatesh tional IT business may see a slowdown, but
CNBC-TV18 digital services, especially SaaS (software as
a service), will post strong growth. Edited

J
ayesh Mehta, managing director excerpts of an interview:
and country treasurer at Bank of Can you give us more colour on the sec-
America, Lakshmi Iyer, CIO debt ond quarter slowdown that your report
and head product at Kotak talks about? Is it in specific sectors, or is it
Mahindra AMC, Upasna Bhard- only banking and finance that are slow-
waj senior economist at Kotak ing? Or, is it counter balanced by some-
Mahindra Bank spoke on the sharp fall thing positive in digital?
in bond yields in the past fortnight and There are a couple of things that are taking
their expectations from the monetary place. The traditional outsourcing market has
policy review on 7 August by the slowed about 10% quarter-on-quarter when we
Reserve Bank of India. Edited excerpts look at the broader piece. However, I think the
from an interview. bigger message is really the rise in the software-
What is your sense of this rapid as-a-service (SaaS). So, when we see the cloud
50 basis points fall in bond yields providers, the SaaS market is up 14% overall.
over the last two weeks? So, we are seeing this tremendous move for Steve Hall, president, ISG Emea.
Mehta: There were few things organizations to move from a traditional out-
which have happened, we were target- sourcing space to more of a SaaS, where they are investing in it—whether it is artificial intelligence
ing 6.40% which smoothly went by and acquiring those assets again from the Amazons, (AI), machine learning (ML), new capabilities on
nobody even realized it. So, 6.40% was the Googles, the Microsoft Azures, or the SaaS mobility, all Indian IT firms are investing.
our first target stop which we were providers. Infosys upped its guidance and spoke
looking at. While the liquidity report So, I think when we look at the broader market very positively about client wins. For TCS
will come out, the current liquidity is (From left) Lakshmi Iyer, CIO-debt and head-product at Kotak Mahindra AMC; Jayesh Mehta, managing director and country of tech providers, the Infosys, the Tata Consult- both performance and body language
there and the expectation is that liquid- treasurer at Bank of America; and Upasna Bhardwaj, senior economist at Kotak Mahindra Bank. ancy Services (TCS), the Wipros, the HCL Tech- was a little more modest. How are Indian
ity stance might change from negative nologies of the world we are seeing a IT companies as a class doing?
liquidity to being surplus when accom- muted. We are still not seeing any signs vate sector gotten that much rates were to last across the curve, it is big shift in their portfolio as well, and INTERVIEW What are the sub classes doing?
modative and deficit when hiking rates. of stability yet. So, in this kind of an cheaper. What is your sense, do very important to keep in mind that it moving more towards digital portfolio We raised our overall forecast last
But that is still a hope, this is a environment, I think there is room for you see now yields going to has to be across the curve and not just versus what we consider traditional outsourcing. week to 3.5% overall growth in the industry. Cer-
0.50 percentage fall we have 50 basis of a rate cut but again we are 6.25%, by when do you think they in the liquid securities that we are talk- We are a retail audience. Can you give us tainly, Indian IT firms will do better than that in
seen. looking at a staggered rate cut possibil- can go even further down, what ing about. However if interest rates an idea of what SaaS is about and how is it most cases. I think a little bit of the conservative
Mehta: Because of the current ity. Right now in the August policy, we is the kind of level you are seeing, structure was to come down meaning- different from other services? nature right now is really because of the macroe-
liquidity, the biggest hangout was are looking at 25 basis of rate cut. by say, 30 September? fully across the curve, then it will grad- SaaS really takes a look at those companies that conomic issues.
about the demand supply. Indian banks Are you seeing any reflection in Mehta: 6.25% there will be some ually start transmitting into the lower deliver cloud-based services. So, if you think So, again, when we talk about trade wars, we
were not buying but now because of the non-government bonds? hurdle but it will sail through and break cost of borrowing and which eventually about Amazon and the Amazon Web Services, have Brexit, we have some tariff issues, we have
liquidity being there in the system, Iyer: Non-government bonds, while through. I think we will find tough could result in providing some kind of Microsoft Azure, or even Alibaba, some macroeconomic headwinds
people thought that at every level, it is moving in the southward direction, resistance breaking 6%. a boost that is much Tencent, or Baidu, they all deliver that are forcing it down. The digital
there will be profit booking coming. we have not seen any material com- You are seeing 6% in If interest rates needed right now to prop services to the enterprise clients, ‘We see softening tailwinds are strong—(in fact) a bit
In fact, this last fall below 6.50% to pression in spreads, so the leaders of 2019? come down up the economy. where there are large cloud services. of the traditional stronger than those macroeco-
now, either they have been adding on the rally still continue to be sovereign Mehta: Yes, we are see- meaningfully Having said that, the If you think of companies like outsourcing mar- nomic headwinds, and that is driv-
little bit more or they have been not bonds and rightly so because that is ing 6% in 2019. As far as across the curve, liquidity framework right Workday, Salesforce or Service- ket, but as organi- ing a lot of the market, especially on
selling enough. Couple of where the bulk of the confi- your thing on the corpo- Now, they are called software as a
it will transmit now, I would agree that
zations embrace the technology spend. The Indian
economists’ reports are talk- INTERVIEW dence is and the hope that rate deposit lending and into lower cost of liquidity is ample—the service companies, which also IT firms are certainly positioned to
ing about 75 to 100 basis supply might be shifted to all that, this last move par- banking system liquidity deliver services across a really broad the global deliv- drive that forward and do quite
borrowing and ery model, we‘ll
points rate cut from now onwards. offshore territories. So, corporate ticularly from 6.50% to provide a boost but we do know that after spectrum of clients that are tradi- well.
What are your own expectations bonds they are coming down in yields 6.33%, it has really hap- to the economy, 1 or 2 months gradually tional IT services. With those com- see good growth Your data on deal wins is very
both in the 7 August policy and but in a very selective fashion. pened in a span of 5 days. says Bhardwaj seasonality sets in, the panies, what we see is really a big in SaaS market.’ erratic. In Q1 of 2018 it was 11%,
for the rest of 2019, looking at all What are your people in the So, one needs to give currency in circulation shift for the corporates to go to those Q2 was 33% and then it is down
the trade data, inflation etc.? bank telling you, are deposit and some time and if it picks up pace. Since gov- types of delivery methods. to 21.21% and then falls sharply.
Bhardwaj: The global situation lending rates coming down? remains here like if there is no huge ernment has started front loading its I am interested in what is happening in Q1 of 2019 is 14.9% and Q2 is 4.6%. Is this
right now is extremely benign-growth Iyer: It is coming down but in a very profit booking coming and it does not expenditures, somewhere towards the the digital deals space, because a lot of a one-off erratic and do we go back to the
and inflation and so is the story being slow fashion, it is not coming down at spike back to 6.40%, then we will see end of the year wherein the govern- Indian IT companies are now upping 20s?
repeated even domestically and as a the pace at which we have seen rate the reflection happening on the lend- ment has shown commitment of adher- their ante in the digital space itself. Ear- We are going to continue to see the shift to
result of which globally we are seeing cuts so far. I hope this is not going to be ing rates and deposit rates and other ing to fiscal discipline. lier the perception was that big digital SaaS market in this space. When we do that, you
all central banks turn extremely dovish. extrapolation of the same act if we were things too. So, all in all, we will start seeing that deals would go to the likes of Accenture, are going to see some of the traditional Indian IT
At least 20-25% of global bond yields to see rate cuts in the coming few What is your sense about the cost kind of tightness build in again and that etc., but now what is the stand? Are business drop a little bit, but it is only dropping in
are trading negative. So, all of this is months. of money for those who are is a normal phenomenon that we see Indian IT players going to get a larger that their work is shifting to the digital side of the
clearly getting reflected in the yield However, the pace at which the lend- investing or consuming, do you every year. Now with this new liquidity chunk of digital deals? equation.
curve here in India as well. ing rates have to get cut, they have not see that coming down anytime framework report that is awaited, it Yes, absolutely. As a matter of fact, the data You will continue to see good growth there as
If we were to talk about domestic seen the same pace as we have seen cuts soon? Do you see the lower cost would be good to hear or kind of get a shows that Indian firms are doing quite well in you go across. Even in our own data we see sof-
growth and inflation environment, it in benchmark rates. of capital triggering growth or confirmed view as to what exactly can the digital space. When we look at the big digital tening of the traditional outsourcing market, but
remains fairly benign even as we talk So, it is only sovereign bond yield consumption at any point? be expected from this, would reverse deals, whether it is moving workloads to the a lot of strength on SaaS market, and as that
about next 6-9 months. Inflation is that has gone down, neither has Bhardwaj: It should definitely start repo in an accommodative stance really cloud space, helping organizations with their moves forward and as organizations continue to
likely to just around touch probably 4% bank lending got any cheaper, creeping in, may be not at the pace that become the operative rate or we would mobile applications, or even connected card embrace the global delivery model and SaaS, we
in the next 9-12 months and not beyond nor are commercial paper or we wanted but in the subsequent continue with the repo rate. technology, the Indian IT firms have done quite are seeing good growth throughout that space.
that and growth is likely to remain other market borrowing of pri- months somewhere if these interest feedback@livemint.com well, and continue to do quite well. Everybody is feedback@livemint.com

Can’t copy-paste labelling norms Trade war has severely affected cotton yields: Nolkha
from outside: Haldiram’s Tyagi Anuj Singhal, Sonia Shenoy
& Latha Venkatesh
the cotton plants in the month
of December. So we could not
industry. Everybody cannot
import. A lot of spinning mills
get January, February, and which are small do not have the
Shereen Bhan Bhujia only. It is a matter of CNBC-TV18 March. Around 40 lakh bales facilities to import the cotton
CNBC-TV18 milk also. Haldiram has also come from the last picking of and that is severely going to

C
started some healthy food like otton prices are under the cotton that we could not get affect the margins of the textile

E
ven milk and fruit juices roasted chana, like diet mur- pressure as yields have this year. industry.
will come under the red mura. We have also started dropped drastically, It is too early to speak about What are you noticing on
category of the draft rules sugar free sweets with the help says Dinesh Nolkha, managing next year’s crop because we are the ground?
for packaged food because of of stevia. director of Nitin Spinners in a lagging behind in sowing so far. Ganatra: The problem the
the high fat content in milk and If you see at our showroom discussion with Atul Ganatra, Around 60% cotton sowing has industry is facing today is short-
sugar content in fruit juices, both types of the product are president of Cotton Association been completed over 75 lakh age of raw material and that is
says A.K. Tyagi, executive available. The sale of these of India (CAI). Edited excerpts hectare and now farmers are because our crop is reduced by
director, Haldiram Snacks. types of products with less of an interview: waiting. In the last 15 days there 15% and the main reason of
Edited excerpts of an interview: sugar and roasted type of items How much are cotton pri- has been no rain in the cotton reducing crop was our yields
Where do you believe is around 5% of that total sales. ces under pressure in the area and states such as Gujarat, have reduced.
there needs to be some We cannot change the habit of local market and what is Maharashtra, Telangana, and Now, as he said, I agree with
flexibility and what are the consumer. the outlook over the next Karnataka are facing huge defi- him, all the mills, 90% of Indian
the key problems that you You said that about 5% of two-three months? cit of rain. There is 26-38% defi- spinning mills are not used to
have with the manner in AK Tyagi, executive director of your products are diet Ganatra: Cot- cit in rainfall. We run imported cotton because
which the Food Safety Haldiram Snacks. food products and that is ton prices in India INTERVIEW have to wait and they don’t have a technician to
and Standards Authority the demand you are see- have not come watch how the rain (Left) Dinesh Nolkha, managing director of Nitin Spinners, and run the imported cotton. So
of India (FSSAI) is putting making only Indian traditional ing for the snacks. If these down much compared to inter- will be in the second half of Atul Ganatra, president of Cotton Association of India. they should have a special tech-
forward the changes that food, whatever you are eating draft regulations are national markets. Internation- July. It is too early for us to say nician. Only few of the big mills,
it hopes to bring forth in the home. So, it will be very implemented in their ally it has dropped by about 18% what the crop yield will be. rency appreciating substan- we produced about 320 lakh which are regularly doing
through a draft notifica- difficult to change the habit of current format, do you while Indian cotton has There has been an 18% tially, the textile industry as a bales this year. imports are able to run
tion? the consumer. think there will be an reduced by 5%. drop in international pri- whole has been severely Overall, if you see, we have imported cotton. Plus most of
Considering the Indian food However, the industry can expansion of this diet cat- This is pre-harvest, isn’t it ces and a 5% drop in local impacted and margins have exported nearly 35-40 lakh the imported cotton is coming
industry, most of our items will propose some healthy food for egory? or is it sowing time? What prices. How does all of eroded substantially. bales. So already there is a 27 mm and 28 mm but our
come under the red category. If the overnourished people, who Definitely this market will is the cotton association’s this impact your own There is news going around shortage of cotton in India. Indian mills like to use good
you take the example of milk account for only grow but at the estimate of the crop and business and what is your that many of the textile mills in Can you not get imported quality of cotton of 29 mm.
and fruit juices, even they come 10% of the total ‘Considering the same time the prices by October when own margin outlook north India and south India cotton at the same price If we compare foreign cotton
under the red category, as fat population. If you Indian food indus- other market will harvest is ready? going ahead? plan to cut production because that a foreign manufac- and Indian cotton, 80 % of
content in the milk and sugar take the example try, most items also grow. Ganatra: The 2018-2019 Nolkha: As Ganatra was say- of lack of demand and demand- turer can get? Indian cotton’s staple length is
content in the jui- will come under According to our crop is 312 lakh bales compared ing, the ICE has gone down by supply imbalan- Nolkha: We do 29 mm and our quality is far
ces is higher. So, we INTERVIEW experience this
the red category. diet category is
to 2017-2018 when it was 365 18%. You also have to look at the ces, which will ‘Cotton yields get but we have a superior and for running
cannot copy-paste lakh bales. So the cotton crop is currency appreciation. So over- severely impact have dropped lot of logistics cost higher counts like 50s-60s our
this rule from the outside. We of US they have Including milk and also growing but around 15% less this year. This all, the international cotton for margins. to 4.20kg this to be added. The spinning mills need Indian cot-
have to consider the Indian overnutrition up fruit juices, which at the same time is mainly because our cotton us has gone down by about 25% Don’t Indian year, which is the prime exporter of ton only. So they are more
consumer and also see the taste to 80%, hence this have high fat and the traditional yields have drastically dropped and Indian cotton by just 5%. prices get cotton at this time dependent on Indian cotton
sugar content.’ lowest in one
habits of the Indian consumer. draft given by category is also this year. Per hectare our yield If you add the US-China corrected is US and a lot of compared to imported cotton.
Milk and fruit juices are very FSSAI. They will growing because this year is 4.20 kilogram, trade tariff war, we are severely because of the decade, due to logistics cost, Also, because China has
healthy items, but if we have need to do brain- rural is a big which is the lowest in one dec- impacted by that because the export pres- paucity of rain in which is about already purchased a lot of good
these norms, it will come under storming between FSSAI and opportunity and in rural you ade. The yield has reduced. sentiments of the textile indus- sure or are August and Sep- 10% of the total quality cotton in the world
the red category. In India lot of the industry. find lot of the malnutrition. If First, there was a paucity of rain try all over the world has gone exports not tember last year.’ cost, has to be market, in the month of March,
people are malnourished and This brainstorming is you take the rural market last year in August and Septem- down substantially because permitted? incurred. This April, they have done booking.
lot of people are overnour- being happening for the mostly our traditional food is ber. China is the major importer Nolkha: makes it slightly So very limited cotton is availa-
ished. Therefore, we have to last few years, but is the the most popular and this diet Second, most of the farmers and exporter of textile prod- Exports are permitted defi- expensive but still there is a lot ble. Even if India wants to do
give food for malnutrition as Haldiram’s Bhujia going category is popular food in now want to take two-three ucts. nitely. That is a free trade but of imports going on. import now, the quantity and
well as for the overnutrition. to fall under the red cate- metros only. This diet category crops, so they don’t want to So basically, because of all this year we had very less crops. However, that is going to quality available is limited. That
We also cannot forget our gory? will take lot of time to grow. keep cotton plants after these factors, our raw material The consumption is about 300 erode the competitiveness of is also the reason.
heritage because Haldiram is It is not a matter of Haldiram feedback@livemint.com December. They are uprooting becoming expensive, our cur- lakh bales in our country and the industry. We have a large feedback@livemint.com
 WEDNESDAY, 17 JULY 2019
NEW DELHI 11

Government of Jammu & Kashmir

OFFICE OF THE EXECUTIVE ENGINEER PWD (R&B) DIVISION RAMBAN
(SHORT TERM) NOTICE INVITING TENDERS
E-NIT No: 18 of 2019-20 Dated: 08.07.2019 (E-tendering)
For and on behalf of the Governor of Jammu & Kashmir State, the Executive Engineer PWD (R&B) Division Ramban invite tenders by e-tendering
mode on Item/%age rates from approved and eligible Contractors/Firms registered with J&K State Govt., PWD, CPWD, MES & Railways for
the following work:-
shape of Treasury
Adv. cost of Work

tender (Technical
Name of Division

Time allowed for

Earnest Money
Tender Doc. In
Name of Work

of Opening of
completion

Contractor
(in Lacs)

(In Lacs)

Class of
Challan
S. No.

1 2 3 4 5 6 7 8 9
1. Construction of road from Kunda to Bhatta via Shaldan by way of 130.00 6000/- @ 2% of 01 Hot Mix Plant
P/L 25 mm thick SDBC over 50 mm thick bituminous macadam Adv. Cost Month Holder/“A”
(L= 4.00 Km) under NABARD Class
PWD (R&B) Div. Ramban

2. Constt. of Chain link fencing for the Govt. Degree College 53.00 1000/- @1% of 02 “SHG”
23.07.2019 (1200 hrs.)

Ramban at Karol Ramban. Adv. cost Month

3. Providing and laying 75 mm thick WBM Grade III, including P/L 36.60 1000/- @ 2% of 02 “A&B”
25 mm thick SDBC over 50 mm thick bituminous macadam on Adv. Cost Month
Kilaseri to Deyargali (L= 1.00 Km) Under NABARD
4. Repair/Renovation of New Boundary wall for NTPHC at 8.20 600/- @ 2% of 01 “A, B, C & D”
Chanderkote. Adv. Cost Month
5. Construction of Protection wall of NTHPC at Sarbagni damaged 6.25 600/- @1% of 01 SHG
due to Rain/Snowfall during January 2019. Adv. Cost Month
6. Repair/Renovation of PWD Residential quarter No. 2 & 4 at Maitra 3.62 600/- @ 2% of 01 “A, B, C & D”
Ramban. Adv. cost Month

Position of AAA = Applied for

Position of funds = DEMANDED

1. Date of Issue of Tender Notice 08.07.2019

2. Period of downloading of bidding documents From 09.07.2019, 10.00 A.M to 22.07.2019, 4.00 P.M
3. Date, Time and place of pre-bid meeting
4. Bid submission Start Date 09.07.2019 From 10.00 A.M DELHI JAL BOARD (GOVT. OF NCT OF DELHI)
5. Bid Submission End Date 22.07.2019 up to 4.00 P.M OFFICE OF THE EXECUTIVE ENGINEER (C) DR-II
6. Date & time of opening of Technical Bids (Online) - [The date should be 23.07.2019 at 12.00 A.M in the Office of the Executive
one day after deadline for receiving of hard copies] Engineer PWD (R&B) Division Ramban.
DELHI GATE STP PHASE-II, OPPOSITE DELHI SECRETARIAT
7. Date & time of opening of Financial Bids (Online) To be notified after technical bid evaluation is completed
IP ESTATE, NEW DELHI-110002
1.The Bidding documents Consisting of qualifying information, eligibility criteria, specifications, Drawings, bill of quantities (B.O.Q), Set of terms and
E-mail: eecdr2@gmail.com
conditions of contract and other details can be seen/downloaded from the departmental website www.jktenders.gov.in as per below schedule: Corrigendum cum Addendum No. 01
Note: *Cost of Bidding Document to be fixed by the tender inviting authority.
NIT No. 01 (Re-invited) 2019-2020 EE(C) DR-II
1. Bids must be uploaded along with Scanned coy of cost of Tender Document in shape of e-challan/copy of receipt from treasury
favouring Executive Engineer PWD (P&B) Division Ramban by crediting the requisite charges to the MH 0059 - PWD (Revenue). (ID No.: 2019_DJB_174220_1)
Scanned copy of the earnest money/bid security in shape of CDR/FDR pledged to Executive Engineer PWD (R&B) Division
Ramban will also be required to be uploaded along with. The Bank Guarantee should be valid for 45 days beyond bid validity. The Name of work: Construction of 60 MGD WWPS at Kilokari including allied appurtenant works, and 10
Qualification of Bidder. years O&M.
a) Scanned copy of Registration Card duly renewed for the current financial year 2019-20.
b) Affidavit on Correctness of information submitted with the Bid. Corrigendum
a) Bidder shall furnish proof of latest return in GST-3/GSTR-3B. 1. In reference to above NIT, the last date for online submission of tender and opening of Technical Bid
d) Copy of PAN card issued by the Income TAX Authority.
(Part-A) is extended from 20.07.2019 (being Saturday) to next working day i.e. 22.07.2019
a) The Cost of tender documents should be submitted by the bidder in shape of Treasury Challan/Receipt and upload the same.
No: 5515-38 Sd/-
2. Volume-1, Section-1, Clause 1.0 Project Objective, Length of rising main mentioned therein shall be
Dated: 08.07.2019 (Er. Maqbool Hussain) considered as 300 m from the proposed pumping station insted of upto gravity duct.
DIP-J-1628-P/19 Executive Engineer, PWD (R&B) Division Ramban 3. Volume-1 Section-1, Clause 1.2.4 Raw Sewage Rising main, Pump head mentioned therein shall be
designed considering last delivery point at Okhla STP.
Addendum
1. Soil Investigation report for reference only. However Clause 1.2.4.1 Civil works, (b) Geotechnical
investigation, of Volume-1, Section-1, shall remain applicable.
2. Indicative Drawings for reference only.
The other terms and conditions of the NIT shall remain the same.
ISSUED BY P.R.O. (WATER) Sd/-
Advt. No. J.S.V. 178/2019-20 E.E. (C) DR.-II

PROPERTY
DLF − SUSHANT LOK
SHOP FOR sale 1550 sq.ft. Ground
Floor in prestigious Arjun Marg
Sopping Complex, DLF-I, Brokers
welcome. Call/ Whatsapp
9818935905
BUILDER FLOORS Brand New in
3/4BHK+Sq in DLF & S-Lok in 215-
300-400-500yd+stilt Car Parking,
lift, Park Fac,Corner+Modern Luxury
interiors 9999234687, 9810099174
LUXURY APARTMENT for sale
DLF Magnolias, Aralias, Belaire, pin-
nacle, salcon verandas, Ambience
Caitriona, golf estate, Unitech world
spa, etc cont - 9958878123
DLF CITY Phase-I, 300 North Facing
12 Meter Road. Just Next To Arjun
Marg. Best For Builder Floor.
Deeparul Estate 9811068621.
DLF- IV Brand New 360Syd 2nd
Flr 100% Roof High End Luxury 4
BHK attach bath 3 Car prkng stilt,
Lift, Gated@ 2.55 CR. Pwr bckup
9999769990, 9999756083
SALE PLOTS /Kothi/floors180
240,360,500,1000yd in south city
I, Greenwood also wanted plots
in DLF & Sushant Lok-I, spot pay-
ment.Harpreet Singh 9810306661
FARIDABAD
CHARMWOOD VILLAGE
Kanwood Tower, 1st Floor,
2 Bedroom, Big Balcony Parking
Lift. Contact: 9911070552
GHAZIABAD
NOIDA/GREATER NOIDA NOIDA/GREATER NOIDA NOIDA/GREATER NOIDA NAINITAL SOUTH DELHI SOUTH DELHI GURUGRAM
SEC-39, NEWLY built Duplex/
Simplex House on 360mt Plot,
DISTRESS SALE Industrial plot
2100 M. Sec-140, 85. 208, 416 M.
FOR SALE, 1000 mtr CC Shed,
covered area 2500 sqft, Individual
A RARE Plot 2000sq.yd, on 30’ main
road with 110 front with boundary
TO-LET COMMERCIAL SPACE 900-3000
sq.ft on 2nd Floor in Vasant Kunj
AVAILABLE 4 BR in brand new
designer builder floor for rent GK-II
SECTOR 44, Gurgaon, 7500 Sq.Ft.,
fully furnished, 124 work stations,
5 Flrs, 7 BR with en-suite bath, Sec-2 Noida. 4000, 8000 Sqm. functional Property, Sector-Ecotech- ball & rain water storage tank on and 2nd to 4th Floor near DDA Flat Corner Park facing 385 sq yds, 8 Cabins, 2 Conference Rooms,
Centrally AC, Lift, Exclusive Design, Sec Ecotech 3, 11 Gr. Noida. 3 Gr Noida @ very good location Ram Garh Road Nainital Contact Kalkaji. Contact: 9212164933, power backup, stilt parking, guard, Lower Ground Floor, A/c, Power
Near Metro. Contact: 9811148524 Contact: 9354745589 # 7838801113. only Needy buyers 9818222721 9212679878 lift, Greenery. # 9811043497. Back-up, 9810084113.
EAST DELHI SOUTH DELHI
SCHOOL PLOT 1001 sq.mts. with IMMEDIATE SALE Simplex Kothi 154 SUKHDEV Vihar, 300 sq.yds, 3 OFFICE SPACE 10500 sq.ft for
C.C. 30 mts wide Road, 0pp. JSS. two & half Storey for Sale in Sector- OWNER SELLING Residential Plot
450mtr in Sector-47, Noida, on HARYANA FOR RENT 2nd Floor, 3 BHK Flat in LARGE COMMERCIAL Show- Beds attach bath, D/D, Mod Kitchen Lease in Ambience Corporate Tower
Engineering Collage, Sector-62, 40, Noida 200sqmtr 7bhk+ bath, room, area 1,100 sq.ft. on Main Road with store room, Lift, 1 Car Pkg. Rent
Noida. Contact: Mr. Chib 12mtr wide road, Completion, one Samrat CGHS, Vasundhra Enclave, Gurgaon near Leela Hotel & Rapid
Near Golf course & Metro station Malviya Nagar Market. Heavy Foot- 72K per month, incl maintenance.
9811079455, 9650483738 times lease rent paid. Contact.: Delhi-96. Pref. Bank/ Company Metro Station on NH-8 Delhi border.
#7838871119. SALE DHARUHERA Sec-24, fall next to top international brands. Owner 9810808162, 9810034566
9873089409, 9999643654 Lease. Cont - Rajiv 8920396824 / Contact Owner - 9717125588
FOR SALE industrial 490sqm sector FARM HOUSE for Sale in Noida 2BHK+2 Toilets, Flat-D-7/05. GF, 7838860120 Call -Owner 8860201080.
60, 12000sft fully furnished cen- Just 95 Lac Size-2016Yd. Swin. Pool, WANTED OUTRIGHT Purchase Vastu, Park Face Covered Parking, J-13 SOUTH Extension Part-1, COMMERCIAL PROPERTY for
Aravali Heights, Area-1207 Sq.ft. FOR RENT One Room Set RENT NEW Friends Colony/ Friends 2 small Rooms, Drawing room,
trally airconditioned building. Also 2 Club, Restaurant, 24x7 Security, 10 Noida /Greater Noida Institute Colony/ Maharani Bagh/ Sukhdev Rent in Gurgaon, Golf Course Road
adjacent buildings 1000sqm each in Mnts Drive from Delhi, More Than Demand 30Lakh. Hani -9212072582 independent Second Floor, 2 Baths, Kitchen, 2 AC, Independent Veritas Business suites. First Floor,
Built up or plot area 2-5 Acres Vihar 300/ 500/ 800 yds Newly
sector 83. call 9811036032 500 Farms Developed. 9810557414. 9810054005 9560040074, Madhuban Preet Vihar for set. Couple prefer. Contact: OKHLA PHASE-2 & 1, Independent Area 1132 sq.ft. Fully Furnished.
Bachelor, Couple or Two built 3BHK/4BHK for Company/ 9899974141 Buildings, Area 30,000 / 35,000 sqft
011-23351160 ACCOMMODATION personal Lease. Sahil-9810649505 Contact : Kamal - 9811432502
SECTOR-47 NOIDA, 450 sqmtr Ladies # 9650718970. @ Rs. 35 to 40/- Wide Road, Ample
Residential Plot for Sale, 12 mtr WANTED SAFDARJUNG ENCLAVE facing car parking and good connectivity.
JAYPEE WISHTOWN Available Deer Park, 2000 sqft, 4 BR att bath, Contact Sanjeev Gupta: 8368757652
wide road, Completion, one-time
Plots 153/ 209/ 239/ 300 / 358/ TOLET VASUNDHRA Enclave
lease rent paid, N/E Facing, Nr Exp WANTED INDEPENDENT House In Delhi-96, 3BHK, DD, Store, 3rd Floor DD, S.Q, fully A/C, 3 side open, 3rd
@7838871119. 418/ 538 Sq.Yds Ready Possession / Western Avenue Sainik Farm floor with Terrace Garden, lift,
Registry Call 9873020004 Society Flat Parking PNG. No Lift.
(Between Lane 1 To 12) Minimum Contact: 8750777651 / 8368965825 Parking. # 9811148066 DLF − SUSHANT LOK
OMAXE GRANDWOOD, 2BHK: 3BHK 800 Yards. Contact 7678418277
1110 Sq.ft. 3rd Floor, B'ful location of FOR SALE 300 Mtr. Liveable Kothi SPACE GF 500 SQ FIT, 1000/
Sector-93B, Noida. Reserved Car in Sector-23, Noida, Park Facing, 5300Sft SF 2000/6000 Sft Upper
OWNER SELLING Industrial Plot WEST DELHI Bsmnt 3000Sft Lower Bsmnt
Parking. Registered Property For Peaceful Location. Lalaji Flatswale:
at 4000 sq.mtr. in Sector-63 and Sale.# 9625714265, 9999333364 9811017172, 9811108384 OFFICE PREMISES 4500Sft at B1/E7 Mohan Estate UDYOG VIHAR Area 4000 sqft
Phase-2 Noida. Please call only MAIN SHANKAR Road Rajinder Badarpur Call 9717745204
Office Space Ready to Move, AC &
Genuine Buyers. Raj Assotech Pvt. Nagar declared commercial, space
Ltd. # 9871146434, 9811701783. FOR RENT 236 & 222 ITO Hans avail approx 3000 ft, corner, with BHIKAJI CAMA Place Available Backup, Fully Furnished with
OUTSIDE DELHI Bhawan And Sale/ Rent 700 to 3400 Workstations, Cabins & Conference,
parking/lift avlble on rent. Kapur- on rent Fully Furnished AC Offices Ample Parking. Owner 9810163939
ATS GREEN 1 Sector-50 Flat semi-furn. nr Vaishali Metro Station
Property 9811094229/25853592 of Various Size with Secretarial
1260 sq.ft 3 BHK, 2 Bath, 3 Balconys LAND FOR sale in Uttarakhand (100 steps) Freehold Commercial. Services on reasonable Rent. Cont:
1st. Floor East facing 2 car park, Contact: 8851371245/ 9811764978. 9350594143 28866031, 26105216
AVAILABLE FOR Lease 1,25,000
clear Title cheque payment.
Rishikesh Neelkanth road. total land OFF/ BANK/ MNC ATM Bas/ sq ft area Newly Build Up Area
area 19200 sq mt. commercial land GF/ 2nd 1500 sqft each, amp 3 floors, Corner Plot , Sector 35 ,
Contact: 9811078925 5400 sq MT with all permissions LAJPAT NAGAR-II, nr metro, ex-
Prkg. C-18 Comm Cent, Janakpuri GOLF LINKS/DEFCOL lease 2/3 Industrial Area,Gurugram
FOR SALE, Greater Noida, for hotel and resort. Developed SPACE FOR ATM 9818270728, 9818343413. cellent location comml 1550 sq.ft,
NOIDA SECTOR-47, Prime land project is under construction.
bhk lift facing park.also fully serviced FF, furn. Newly renovated, MNC / # 9958799551, 98116 64363
Residential Plot, 350 sq mtr, Location 450mtrs Completion Plot apartments and office space ready to
owner 7999994849, 9250000045 other's Ready to work 5AC, broker
Completion, Sector Gamma @ N/East Fac. 18mtr Wide Rd. One PRIME LOCATION ATM space move in. Short/long lease. Contact - welcome.Owner 29812390,29815859
Reasonable price. Call for more Time Lease Rent Paid. Only Genuine available in South & Central Delhi at 9650637878 FARIDABAD
details # 9999921997. Buyer Call 9810385772 Anil Arora Tribhuvan complex, Ishwar Nagar, DEFENCE COLONY, C-Block, SF,
SHIMLA Main Mathura Road. Also at 7181, 3BHK, 2ND Floor, Sec B 10 Vasant 1 BHK Large terrace, Fully furnished,
Mandelia Road, Kamla Nagar, Kunj, spacious, security, park, LIFT, ON RENT at DLF Corporate Park, FOR LEASE Newly Built up Comm-
From 1 Sept. Co. lease preferred. Call Separate entrance, Car Prkg. Avail. MG Road, GGN. 1740 Sq Ft, Centrally erical Blg on Neelam-Railway Road
SOLACE SUITES Hotel & Residency Contact: 9312435591, 9811841631 Single person pref. # 011-24336073,
9899729465. Air Conditioned, Power Backup, Can Basement GF, FF and 2nd floor each
Become A Proud Owner Of 4 Star 24335427, 9810082683. be furnished also. # 8800900930, 2400sqft suitable for Bank MNC. U.
Hotel Room Property In Barog 9811028876 Brokers Welcome. Chaudhary 9810027024,9311585960
H.P., Bookings Open for 2 BHK JAIPUR GREATER KAILASH-I, B-Block, AVAILABLE FOR Rent Ready to
FACTORY / Godown/Offices/ 340 Yds, First Flr (4 yrs Old),3 BHK,
# 9810988807,9811848480 Warehouse in Indl./Coml.at Naraina, Shift Furnished Office on Main Road
Lift, Well Maintained, Reserved Two Hauz Khas Suitable for 20 People
Mayapuri, Kirti Ngr., Rama Rd., Shi- Car Parking, Suits Co./Personal GURUGRAM GHAZIABAD
vaji Marg, Najafgarh Rd. etc. Shivam Team Contract Bhuvnesh Soral
Lease. H.V. Realtors 9810883504 M. 9899305511
INDUSTRIAL SALE: Noida & NAINITAL Prop. 98100-06330, 98731-11900.
Greater Noida, size 4000mt, 2100mt ANAND NIKETAN, 4BHK, 425 syd, BHIKAJI CAMA Place, Madam OFFICE SPACE For Lease JMD FACTORY/ OFC Space Bsmnt
1000mt, 450mt, 210mt, 114mt. EAST PATEL Nagar Furnished Designer Apartment, AC, lift, terrace Megapolis Gurgaon 5616 Sq.Ft. 2500 Sft, FF 1200 Sft , SF 3500 Sft,
Excellent Location @ attractive Large Corner GF Bank Top Co. Garden, Facing Park, Servant Room. Bhikaji Bhawan, 5th Flr,1460 Sq.Ft Fully Furnished, Corner, Three 4th Flr 1500/3200 Sft at A-36
price. # 9810234716, 8383062712 Lease Suits Guest House also Upper Diplomat/Foreigners/MNC. Owner for rent. Furnished office with AC. Side Open, Main Road Facing. Site -4 Indl Area Sahibabad
Basement 2400 sqft Mahatta Tower Good access to Hyatt Hotel, Airport, Contact: Owner: 98990 30811. Ghaziabad Call 9717745204.
# 9871926228, 8800521594.
Janakpuri 25886811, 8585997824 Gurgaon & CP. # 9811015080
SPACE GF 500 sq fit, 1000/ 5300Sft FACTORY /OFC Space Bsmnt
COMMERCIAL RENTAL space SF 2000/6000 Sft Upper Bsmnt MAIN CENTRAL Market, Lajpat 2500 Sft, FF 1200 Sft, SF 3500 Sft,
avbl B'ment 1st &2nd Flr each 2000 3000Sft Lower Bsmnt 4500Sft at Nagar.-2, Commercial. Ground Floor. 4th flr 1500/3200 Sft at A-36 Site-4
sqft Main Shivaji Marg F.frnshd pwr B1/E7 Mohan Estate Badarpur 900 sq. ft. for Rent Interior Done Indl Area Sahibabad Ghaziabad
bckup sutbl for Call centreMnc,s, Call 9717745204 for Inspection Immediately. owner Call 9717745204
Institute #9810052222, 9811699699 9971811422 & 9953319769
JANGPURA EXTN Birbal Marg,
Prime location, Front Facing Balcony, NIZ. EAST 1000 yds, GF 5BHK+
RESIDENTIAL SECTOR 44/300/ IInd Fl,1700 sq ft, 3BHK, Dwg, Dining, B'ment, Driveway, SF-4 BHK, 3rd Flr. NOIDA/GREATER NOIDA
450 mtr. 48/200, 51/300, 52/200/
DWARKA Two renovated Bathrooms.M: Terrace Aptt-3 BHK, Lift, SQ, Ample NEWLY BUILT Indl./ Warehouse
450, 71/450, 72/300, 92/250, 93B/ 9811111399 Parking, Prime Loc. Owner 98189- building with approved CLU for rent. RUNNING INSTITUTE KP-III
450 105/ 300/450, 108/250/300 3BHK APARTMENT in Sec-18 for 60608, 9312603710, 9899408448 5500 s.ft (PEB Structure)+ 2700 s.ft Gr Noida Corner plot area 5420sqmt
/450 Contact: 9810496262 Rent/Co. lease at Rs.32000 and S.J. ENCL. Ring Road facing Ground (2 flrs RCC admin block). Lush green Built up 33000sqft Suits Vocational
2BHK Builder 2nd floor Sec-8 Main + LGF. 4500 Sq.Ft. Long lease. DEFENCE COL. C-block 325 yds 1st & calm environment. Suits MNCs/ courses, MBA, BBA, BCA, MCA, BED,
1400 SFT, 3 BHK+ Study + 2 Road Rs. 18000. Cont: Mr. Mathur ample Parking. Suits Doctors/ CA/ Flr & 3rd Flr in same building 3 Beds, business houses at Vill. Nayagaon, NSDC projects & etc 9811300176
Toilets,Upper Ground floor, Ushma 8178283090, 9968806262. Lawyer/ Architect/ Professionals. Att. Baths, D/D, Kitchen, Genset,
INDUSTRIAL 450MT & 1000mt Urja Apartment.Sector 62,Covered Owner # 9871298983. Luxuriously made SQ stilt 2 car
Badshahpur, Sohna Road (Gurgaon).
PF 30 mt Rd sec 63,65.210mt to 800 car park + lift Rs 86 lac Negotiable Cont: 9999801874, 9958292284 FOR RENT Factory Bldg 4 floors,
parking @ 1.5k Gagan : 9971298498
mt sec 2,3,8 30mt RD 1222mt sec 57 #9810014715 ,9310014715 CENTRAL DELHI ON RENT 137,First Floor,Zamrudpur, Glass Elevation (17000 sft) Sec 58,
2100mt to 10000 mt Crnr 45mt RD GK 1 opp. LSR College having DLF CHATTARPUR Farm House IMMED LONG Lease fully Furnished Noida. Call 8860078680/
sec80,85,136 Xpressway 9811322226 2 Room set with Separate Toilet & 1851 sq ft, BPTP ParkCentra, 5 cabins, 9312221911 / 9810029922.
26 oak drive peaceful 1.5acre artistic 12 work stns, 10 seater Conference
3BED ROOM residential flat(SEMI Kitchen furnished. (O) 8800900930, Design 5Bedrooms Huge Lawns Pool
FURNISHED/FULLY FURNISHED) with 9811028876, Brokers Welcome 100% AC & Power Backup Immedi-
Room with ServerRoom and VERY WELL furnished office space
Servant quarter, pooja room, a covrd reception. M: 9811111399 approx 4500 sq.ft area available
ate possession Owner 9811056055.
reserved car parking on Hailey road, GREATER KAILASH Part-2 for Rent in Greater Noida near
Opp. Morden School, ND-01. Only COMMERCIAL OFFICE space 136 Metro station Top location Nitin
GF (250) 3 Bedroom Drawing
financially very sound parties should Dining Attached Bathroom Sq. vishal house Zamrudpur opp LSR,Nr. Gupta # 9810024112, 8383853487
contact # 9999411000, 9811373817 Parking Rent 60000, Cont. Ravi metro stn. s.f 2500ft fur/unfur vaca-
INDUSTRIAL / Institutional / IT 9811468413, 9810783085 Khan ted by foreigner NGO. rent 1.30L Ne- FURNISHED/ UNFURNISHED
Plots/Building Sale, Purchase, & go. owner 9810395063, 9811273367 office space available for long lease
Renting in Ph-I, II & III / Noida
SOUTH DELHI FOR RENT Fully Const. RCC industrial /rent in Sec-10,DND Road,Noida, Bs-
Exp-way & all Resi. Noida/ Gr. Noida. bldg. in Okhla Ph-1,3 Floors,3100 sqft VASANT KUNJ Nelson Mandela mt-1250 sq.ft,GF-1250 sq.ft, SF 1550
# 9891008515, 9891007076 each,fully furnishd.Interested parties Marg B-XI, 2 BR 3rd floor, 3 side sq.ft, TF-1550 sq.ft. Call 9811142911.
OFFICE SPACE for Rent 800 sq. ft. for complete building or independent open. MNC/Company lease only.
furnished, A/c, at A-285, Defence floors may call: Mr.Madan-9911221125 Genuine Brokers only.
Colony, Independent entry, toilet, Contact: 8076350905.
electricity, balcony. M: 9810159225
EAST OF Kailash Commercial S.D.A BHIMNAGRI DDA-MIG Flat
CR PARK 160yds. New 3BR D/D, Lift, GF 2400 Sqft. Hall Front Entry for Rent, Corner 1st Flr 3BR, D/D, Lot
Stilt Pkg, Park facing, GK-II & Kalkaji Main Rd Nr. Metro Stn. Ample of Natural Light & Ventilation, Gated
1/2/3/4BR D/D, Commercial CR Park Prkg, Suits Banks, Showrooms & Security, Surrounded by Greenery,
Basement + GF 1500+1500 sft. any comm. activity. #9354147522 Ample Parking Owner 9810040681
Himanshu 9810888826,9810007100
DISTRESS SALE! BPO land 500 sqm PRE-LEASE INVESTMENTS in SOUTHDELHI BASED, Excellent B-3/49, SAFDARJANG Enclave, IMMED LONG lease furnished 2782 INDL. BUILDING / Shed / Offices /
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whatsapp 9899943997 ant's. Return 5% -7.5% @ 3 to 25 Cr. Splendor jasola. Please contact Mandir, Malviya Nagar. Contact Suitable for Expat/Diplomat. Room, 4 Seater Meeting Room. M: 100000 sq.ft. Raj Assotech Pvt. Ltd.
Call #9999981395. owner 9910955441. Rajesh Saini 9990200200 Salwan: 9810062871, 9810034566 9811111399 # 9871146434, 9871196123.
12 WEDNESDAY, 17 JULY 2019
NEW DELHI PERSONAL FINANCE

GLOBETROTTER CITIES AUCKLAND SHOPPING

Price in Price multiple Price in
RESTAURANT
Price in Price multiple Price in
STAY & TRANSPORTATION
Price in Price multiple Price in
The Mint Globetrotter Index compares the cost of 25 essential travel spends Delhi () (times) Auckland () Delhi () (times) Auckland () Delhi () (times) Auckland ()
for 50 cities across five regions. The analysis, published on 15 May, can be
seen on www.livemint.com/globetrotter2019. Every Wednesday, in this space, Coke/Pepsi (0.33 litre) 32 4.7 151 Inexpensive meal 250 3.7 918 Hotel tariff (per day) 3,408 2.4 8,254
we will list these 25 spends for a city and compare it with Delhi. 3-course meal Airbnb (per day) 2,446 2.8 6,762
Milk (regular, 1 litre) 49 2.5 122 (mid-range restaurant) 1,200 3.4 4,131
Mint One-way ticket
Globetrotter White bread (500 gm) 29 3.5 106 250 1.8 30 5.8 174
Index 2019
McMeal 459 (local transport)
ranking Local cheese (1 kg) 309 1.4 424 Local beer Taxi fare
110
(0.5 litre draught) 120 3.8 459 (base fare + 5 km) 6.5 752
RANK Apples (1 kg) 121 1.4 170
(out of 50) Cappuccino (regular) 123 1.7 217 Petrol (1 litre) 74 1.4 104
Bananas (1 kg) 53 2.6 136
31 Oranges (1 kg) 61 3.0 181 LEISURE
1. All data from www.numbeo.com, barring
two exceptions (given below). 2. City-
specific price data as of 21 April, 2019.
Water (1.5 litre) 28 3.0 86 Price in Delhi () Price multiple (times) Auckland () Globetrotter ranking as of April 2019. 3. For
Overall price hotel tariffs, we considered three-star hotels
multiple
Wine (mid-range) 700 0.9 643 Movie ticket (1 seat) 300 2.8 826 on Hotels.com and Expedia.com. We
searched for two guests, stay of 1-2 June, and
to Delhi (times) Local beer (0.5 litre) 102 2.2 226 Jeans (Levi's 501 or similar) 2,478 1.9 4,755 sorted the top seven listings by guest rating,
and took their average. 4. Airbnb tariffs
Cigarettes
300 4.5 1,356 Summer dress (Zara, H&M or similar) 2,642 1.0 2,671 sourced from Airdna.co (the analytics arm
2.16 (Marlboro, pack of 20)
Nike running shoes (mid-range) 3,944 1.6 6,325 of Airbnb). Tariff shows average for studio
apartment or one-room apartment for city.
Source: howindialives.com

SANTOSH SHARMA/MINT

Govt’s new buyback tax set to hit POWER

POINT
MF investors, shareholders alike Respond to this column at
mintmoney@livemint.com
S A N J AY S A P R E

The new buyback tax coupled with dividend tax may lower the return from various equity investments
DEBT MUTUAL
Neil Borate
ISTOCK
be good for the company.
FUNDS ALSO NEED A
neil.borate@livemint.com Mutual fund investors are
already at a disadvantage. They ‘SAHI HAI’ MOMENT
T
he new budget proposal have to endure an additional layer

T
to tax buybacks and div- of taxation if they opt for dividend raffic jams in Mumbai are normal but I recently saw a pic-
idends at the same rate options of funds at 10% of the divi- ture of a traffic jam (queue) to climb and descend Mount
of effectively 20% may dend distributed. Those who Everest. The sad part was that a few climbers died as they
curtail the flow of distri- choose the growth option have to ran out of oxygen when descending. Climbing Everest is not just
bution—that companies under- pay a 15% short-term capital gains about reaching the summit, the journey doesn’t end till you
take from time to time to give tax and a 10% long-term gains tax Buyback return to the base camp as the descent is equally difficult. Credit
tax: A
investors a share in their profits— depending on how long the unit is loophole
issues facing debt funds, especially credit risk funds (CRFs), have
to the shareholders. held. The new buyback tax adds fixed or an a strong connect with this example as many investors entered
A buyback is where a company heavily to their woes. anomaly CRFs for higher returns vis-à-vis traditional deposits. They
buys back or repurchases the A consequence of India’s tax made thought it was a one-way street, unaware of the downside risks
worse?
shares issued to shareholders. A policy is that the effective tax rate like defaults or downgrades which impacted returns recently.
dividend is a specified amount per for a dividend paying company is bit.ly/30xcMtu The key risks associated with debt funds include interest rate
share that is paid out to the share- higher than that of a company that risk, credit risk and liquidity risk. Interest rate risk is triggered
holders. A buyback offer, however, retains the earnings to re-invest, due to change in interest rates which generally has an inverse
is optional. Only those sharehold- wrote Rajeev Thakkar, chief correlation to returns. Credit risk impacts returns due to default
ers who wish to receive money in investment officer, PPFAS Asset or delay in paying interest or principal by the issuing company,
lieu of their shares may tender Management Co. Ltd, in a post on or by a downgrade in credit rating. Liquidity risk occurs when a
their shares in a buyback. 3 July on the AMC’s blog The Tor- fund is not able to liquidate its investments at fair valuations
Typically, companies distribute dividends. The value of buybacks toise Speaks. Adding a footnote owing to limited trading volumes (typically, impacts lower-rated
dividends or buy back shares from went up from ₹1,724 crore in cal- Rise and fall 55,225.70
after Budget 2019, he wrote, “Post securities). Recent credit events related to non-banking finance
investors using their post-tax endar year 2015 to ₹39,246 crore Buybacks rose Total value the amendment in the Income-tax companies (NBFCs) and housing finance companies (HFCs) have
39,246.51
income. For all but the smallest in 2018. dramatically after an of buybacks Act, dividends and share buybacks put a focus on credit and liquidity risks.
(₹ crore) 31,227.77
companies, corporate tax is Information Technology (IT) additional 10% tax on 28,368 will be at par. However, the point Though we have seen such events earlier, the current situation
dividends above ₹10
charged at the rate of 30%. There’s companies, in particular, resorted relating to preferring companies has been more intense, as downgrades or defaults have happened
lakh was imposed in
also a surcharge of 7% or 12% to buybacks. In 2017, Infosys Ltd, the 2016 budget. The which can deploy surplus cash in in quick succession. While the belief is that only lower-rated
(depending on the size of the com- Tata Consultancy Services Ltd buyback tax in 2019 is 643.43 1,724.94 their own business or create value papers and CRFs have been hit, the reality is that this has hap-
pany), and a health and education (TCS), Wipro Ltd and Mindtree expected to lead to a 2014 2015 2016 2017 2018 2019*
by reinvesting capital in other pened across ratings and fund categories. CRFs, however, were
cess of 4% for all companies. Ltd announced buybacks. TCS sharp fall in buybacks. *First half businesses remains valid.” singled out—one, because of the word “risk” in their names and
Source: Capitaline
Though the dividends are paid repeated the offer in 2018 and was Aashish Somaiyya, chief execu- two, because by definition they invest 65% or more of their assets
SANTOSH SHARMA/MINT
out of the income on which tax has joined by majors such as HCL tive offiver, Motilal Oswal Asset in below-the-highest-rated securities and are, therefore, believed
already been charged, the govern- Technologies Ltd and Mphasis nomic reasons, but the switch injkar, head of research at Ventura Management Co. Ltd, spelt out the to take higher credit risk. Commensurately, CRFs also have the
ment imposes yet Ltd, while Infosys from dividends to buybacks Securities Ltd, a brokerage. “This problem in plainer terms. “Buy- potential to provide higher returns which increased their popu-
another tax layer on Investors should announced another reduced the effective tax burden will make foreign companies the back tax coupled with dividend tax larity over the years. Their assets under management (AUM) grew
them—dividend dis- keep a close eye buyback in early 2019 on corporate investors. unintended beneficiaries of will lower the expected payoff by 51% per annum since their inception in 2002 to ₹80,000 crore
tribution tax (DDT)— on how and so did Persistent Taking cognizance of this trend, India’s buyback tax,” he added. from equity and its multiples. Such as of April 2019. Investors must, however, remember that credit
at an effective rate of companies and Systems Ltd. Budget 2019 has proposed to tax high level of taxation will lead to risk is not restricted to CRFs but is present in every fund that
20% on the company. “This is because IT buybacks at the same rate. The WHAT IT MEANS FOR YOU companies retaining more of their invests in corporate credit.
fund managers
After this tax is paid, companies are cash memorandum to Budget 2019 For shareholders of companies, earnings which has potential risk What should investors do in this situation? Firstly, avoid panic
shareholders who get react to the new rich,” said a fund noted, “Taxpayers preferred it the buyback tax is, of course, bad of driving down RoE and can also and consult a financial adviser. An exit may be the last resort as
more than ₹10 lakh in buyback tax manager of a leading (buybacks) for tax avoidance, since news. But even for mutual fund lead to sub-optimal reinvestment you can lose due to exit load, capital gains and any loss on the
dividends per annum asset management the tax rate for capital gains is investors, the buyback and divi- in the business or unrelated/ investment itself. It is often better to remain invested and allow
need to pay another company (AMC), on lower than the rate of dividend dend taxes have consequences. loosely related diversification and returns to improve via accruals, rather than exit at a loss. This,
10% tax. The 10% additional tax on the condition of anonymity. distribution.” The government First, like other investors, mutual increase governance risks.” however, will depend on the concentration of securities in the
dividends was introduced in Bud- “Their operating cash flow is has proposed the closure of the funds were beneficiaries of tax-ef- A chief investment officer at a portfolio, besides the track record of
get 2016 to extract a larger tax pie almost the same as their net profit, buyback loophole from 5 July ficient buybacks and this is set to private AMC, speaking on the con- the fund house and portfolio manager
from promoters, who are also which means they can distribute 2019, effectively. come to an end. Second, the con- dition of anonymity, added that he A difficult in managing such credit events. Stay-
investors, and high networth indi- almost their entire profit. Many So what will IT companies do sequential effect on corporate would have to revise his calcula- time in debt ing invested may also allow investors
viduals (HNIs). companies have stated policies of now with their surplus cash? Some behaviour—investing rather than tions about equity returns if the to gain from any potential upside if
distributing 50% of their earnings experts have suggested mergers distributing money—to save tax buyback tax is retained. markets is also recovery happens and any money is
ARRESTING BUYBACKS to shareholders as dividends or and acquisitions. “IT companies can take a toll on returns. Hoard- Investors should keep an eye on often the best returned to the fund.
To blunt the tax hit, more and buybacks,” he added. are likely to make acquisitions out- ing cash can drive down return on how companies and fund manag- time to find Can credit events recur? Yes.
more companies started offering These distributions may well side India rather than distribute equity (RoE) and investing in ave- ers react to this tax when it comes good yields Upgrades, downgrades, or defaults
buybacks rather than distributing have been for fundamental eco- their surplus cash,” said Vinit Bol- nues which don’t add value can’t to investing in other companies. depend upon the company’s business
position, sectoral outlook, etc., and are
a part and parcel of investing in debt funds (like market volatility
in equity funds). Debt funds are not guaranteed but market-
linked—they aim to maximize returns by buying corporate bonds

You can transfer right How much tax do

you pay on debt-
vis-à-vis government bonds for better yields; buying AA- and A-
rated bonds to gain from their higher yields and increasing or
decreasing portfolio maturity to benefit from a rise or fall in inter-

of undivided house related investments? TAX est rates. One may lose if these calls go wrong, but the impact may
often only be transient. Investors wishing to benefit from the
Any portfolio should have a balanced Debt-oriented mutual funds (What is long term? potential for higher returns must be resilient, understand the
mix of asset classes. Diversification More than 3 years) risks, and learn to mitigate these. A bigger solace is that even
helps reduce the overall risk. For CRFs, which are believed to have higher risk have not delivered
Aradhana Bhansali Dividend Short-term Long-term
ASK MINT instance, equity investments tend to distribution tax (DDT) capital gains tax capital gains tax negative returns over any three- or five-year periods in the 15
m give higher returns than all other asset years till April 2019, besides outperforming corporate bond funds.
I am a single unmarried
LEGAL
classes over the long run, but they are 38.83% Slab rate 20.8% How to mitigate credit risk? Diversification can help lessen the
woman and own a house also riskier. To balance that, one must impact of a default or downgrade. For example, if a portfolio has
Fixed deposits
in my name. The prop- erty in favour of your friend by invest in debt-related products. While 50 securities, then each security only has a 2% weight in the port-
erty was bought in 2004. way of a gift or by any other these too carry some risk, they are Tax on interest For senior citizens, interest up to folio (if equally divided). The impact of default in one security is
In the absence of any mode of transfer. Simultane- considered safer. Also pay heed to the Slab rate 50,000 is exempt
thus limited. According to CRISIL, even A-rated securities have
legal heirs, in order to ously, you can also make your taxation rules to know what the net only about 2% chance of default (three-year holding period), indi-
safeguard the property Will whereby you can returns would be. Any change in rules National Savings Certificate cating that 98% of A-rated securities may not default. Thus, a
from my rela- bequeath the can affect the reason why you had well-diversified portfolio coupled with the manager’s track
Tax on interest If interest is reinvested, deduction up to
invested in the product. Here’s a look at
tives, can I You can transfer remaining 75% a maximum of 1.5 lakh is allowed under record can help mitigate credit risk.
include a undivided right, undivided right, the tax rules that apply to some Slab rate Section 80C
Also, corporate bonds are relatively illiquid owing to which
debt-related investment products
trustworthy title and interest title and interest fund managers often adopt a “buy and hold” approach. There-
friend as a in the property to in the property in Post office deposits fore, even in case of a near-term downgrade, they may believe
co-owner? favour of your Tax on interest that the security will recover and provide capital appreciation.
your friend by friend who For senior citizens, interest up to
—Name with- Hence, it is important to identify fund houses and managers with
held on request way of gift, or by already owns a Slab rate 50,000 is exempt
strong risk management processes and consistency in returns
To safeguard any other mode certain minimum despite defaults and downgrades. On the other hand, those lack-
your property percentage. This Senior Citizens’ Savings Scheme ing the risk appetite for such events can look at funds like banking
from your rela- will safeguard Tax on interest and PSU, overnight, liquid and money market funds which often
No tax deducted at source on interest
tives or any third party, while your interest of protecting the have shorter durations and lower exposure to corporate credits.
enjoying the benefits of the property from your relatives.
Slab rate up to 10,000
Remember that the best view comes only after the hardest
same during your lifetime, you Aradhana Bhansali is part- For further details on taxation, go to bit.ly/2pOeeH9 climb. Accordingly, difficult debt markets are often the best time
can transfer a certain percent- ner, Rajani Associates. Queries Source: EY, Mint research to find yields, but they are also the most difficult time to convince
age, say, 25% undivided right, and views at mintmoney@live- investors to buy.
title and interest in the prop- mint.com VIPUL SHARMA/MINT Sanjay Sapre is president, Franklin Templeton – India
 PERSONAL FINANCE WEDNESDAY, 17 JULY 2019
NEW DELHI 13

ISTOCK

STFC NCD issue opens

today. Should you buy?
Non-convertible debentures carry high risk and are taxed at slab rates
PTI
Neil Borate
neil.b@livemint.com

A
fresh issue of non-
convertible
debentures
(NCDs) by Shri-
Retail investors can also participate in
ram Transport
Finance Co. Ltd (STFC), a non-
banking finance company
the primary market issues of G-secs
(NBFC), opens on 17 July. The
company is seeking to raise up
to ₹10,000 crore in this tran- Sunita Abraham amount for institutional bidders. The Trading members of stock
che which will close on 16 sunita.a@livemint.com retail investors are also entitled to exchanges can accept bids on behalf
August. The issue comes in the this yield. of their clients. The order can be

T
middle of a storm in the credit he government issues debt placed offline or online using the
markets, particularly sur- securities from time to time to RETAIL PARTICIPATION web platforms, NSE goBID and BSE
rounding NBFCs. Look fund its fiscal deficit. This Retail investors participate in the Direct, and mobile-based applica-
beyond
The issue is being offered interest rate
includes treasury bills that are issued auction through banks, primary tions provided by the respective
for different tenors, ranging of NCDs for 91, 182 and 364 days and govern- dealers, members of the stock stock exchanges.
from 30 months to 84 months bit.ly/2LmzNvR
ment securities (G-secs) for longer exchange and others who are desig- Retail investors can place their
with interest rates (called cou- tenors. But did you know that retail nated as facilitators and aggre- order in the specified
pon rates in technical terms) investors can also participate in these gators. period before the date of
ranging from 9.12% to 9.70% primary issues? The minimum u
Did yo W the auction. Payment
depending on the tenor. The Reserve Bank of India (RBI) investment limit is KNO for an offline order
STFC caters to first-time about its credit profile. Feroze Issue details are more tax efficient and are notifies the details of the forthcom- ₹10,000 and the has to be made
buyers and small road trans- Azeez, deputy chief executive less risky than NCDs. ing issues on a weekly basis. The maximum ₹2 crore through the trading
port operators for financing officer, Anand Rathi Wealth Shriram Transport “The interest on NCDs is securities are issued through com- per security per auc- member like it is
Issuer
Finance Co. Ltd
pre-owned commercial vehi- Advisors Ltd, a wealth man- fully taxable as per the individ- petitive bidding in auctions con- tion. Investors can done for equity mar-
cles. It has a pan-India pres- agement firm, noted that the ual tax bracket, which puts ducted by RBI and the participants only make a single bid for a kets. For investors
Tenor Interest
ence with a network of 1,545 company has a solid corporate (coupon) rate them at a disadvantage against include banks, primary dealers and security in each auction. using the web platform or
30 to 84
branches and employs 26,630 governance track record. The months 9.12-9.70%
debt funds which carry the other institutions. Investors must be KYC-com- mobile app, the payment has to
full-time employees as of 31 duration of cash flow of assets benefit of indexation if held for To facilitate and encourage retail pliant and must have a demateri- be made online from the bank
March 2019. The NBFC pro- in NBFCs in verticals like vehi- Interest payout more than three years,” said participation in these auctions, 5% of alized account if they want to hold account linked to the investor’s
vides financing for passenger cle or consumer finance is Annual, monthly, cumulative Nishith Baldevdas, founder, the notified amount in each auction the securities in dematerialized demat account.
commercial vehicles, multi- much shorter compared to Shree Financial, a Chennai- is reserved for retail investors mode or have a gilt account and have The orders can be cancelled before
utility vehicles, three-wheel- housing finance companies, Minimum Maximum based independent financial through a non-competitive bidding the securities credited in it. The the date of the auction. Once the auc-
ers and tractors as well as for he added. “The company does Investment investment advisory firm. process. Under this, investors are securities allotted will be transferred tion is complete, the allotted securi-
ancillary equipment and vehi- not face the same asset-liabil- amount amount While many debt funds only required to specify the amount to investors’ accounts within five ties are transferred to the demat
₹ 10,000 None
cle parts such as tyres and ity mismatch as housing have been hit hard by the and do not have to quote the yield or working days from the date of auc- accounts of investors.
engine replacement. finance companies Its loans Issue date
NBFC crisis, the capital mar- price. tion. The securities that are allotted in
are made for a much shorter 17 July to 16 August kets regulator Securities and The yield is fixed on the basis of Both the NSE and BSE offer conve- the primary market can be sold by
THE RATING tenor to thousands of small Exchange Board of India has the competitive bidding process that nient and familiar options for inves- investors any time on the stock
The issue has been rated AA+ truck operators,” said Ashish Rating brought in new norms to make happens for the 95% of the notified tors to participate in these issues. exchanges where they are listed.
(stable) by CARE Ratings and Shanker, head, investment AA+ (Stable) by CARE and them safer. Also, NCDs are
AA+ (outlook stable) by India advisory, Motilal Oswal Pri- India Ratings and Research inherently less diversified
Ratings and Research Pvt. Ltd. vate Wealth Management. Source: Company prospectus
than debt funds, which hold
A rating of AA+ plus indicates a STFC has faced significant multiple NCDs and other types
high degree of pressure on its of debt papers.
safety in terms of Investors can look stock of late. The at the slab rate. Hence, inves- Moreover, short-term debt
timely servicing
of debt obliga-
at debt funds
instead as they
scrip is down
about 14% in the
tors in the highest tax bracket
of 30% are likely to get a post-
funds on average have given a
three-year return of 5.25%, Contract notes record stock market transactions
tions and low are more past one year and tax yield of 6.4-6.8%. according to data from Value
credit risk. This 7% annualized In comparison, National Research. In fact, select well- Sunita Abraham Similarly, it should identify also give the order number,
tax-efficient
rating stands one over the past Savings Certificates (NSCs) managed debt funds have sunita.a@livemint.com the trading member by Sebi trade number and trade time
notch below the and less risky three years. On 17 have a pre-tax yield of 7.9% delivered higher returns. registration number and for each transaction. It may
than NCDs
highest possible
rating of AAA.
However, agen-
June, Piramal
Enterprises Ltd
sold its entire 10%
over a tenor of five years. This
implies a post-tax yield of
5.53% for investors in the 30%
If you still want to apply for
the debenture issue, you need
to submit an application form
A contract note is a legal
document that contains
the details of stock market
trading member code.
The note should give the
relevant settlement number
be issued electronically but
should be digitally signed.
Contract notes give rise to
cies are known to frequently stake worth ₹2,300 crore in bracket. However, NSCs carry to your bank or broker, autho- transactions undertaken by and period for transactions. contractual rights and obli-
revise their ratings. For the company. “Some of the almost no risk of default. rizing the intermediary to a member of a stock Also, it should contain the gations of parties to a trade.
instance, ICRA Ltd assigned recent negatives like higher Investors in lower tax brack- block the amount. The bank exchange on behalf of a cli- details of transactions such An investor should, there-
an AAA rating to debt issued stressed assets and the stake ets, who want a fixed interest needs to be a self-certified syn- ent. as the securities bought or fore, ensure that they receive
by the IL&FS group till August sale by Piramal are bearing on rate, can look at government dicate bank (SCSB), a list of The format and content of (Sebi). It should clearly iden- sold, quantity, gross rate per a contract note from the
2018. The group defaulted in the stock price,” said Shanker. savings schemes like NSCs which you can get here a contract note is specified tify the client and mention security, total transaction stock broker for every trans-
September 2018. instead of NCDs. (bit.ly/2XPzjjx). Some banks or by the Securities and the unique client code value, brokerage and other action. It is the legal proof in
In the case of STFC, how- SHOULD YOU BUY? Investors can look at debt brokers will allow you to sub- Exchange Board of India assigned by the member. statutory levies. It should case of any disputes.
ever, experts are positive The interest on NCDs is taxed funds as an alternative as they mit this form online.
14 WEDNESDAY, 17 JULY 2019
NEW DELHI VIEWS

OUR VIEW MY VIEW | ARTHANOMICS

ISTOCKPHOTO

We should not be crying wolf

over dollar sovereign bonds
Even if we assume a falling rupee, there is no reason why some risk cannot be taken on such bonds

The stronger arguments offered Indian Development Bonds. In 1998,

include the following: One is that while
dollar borrowings are cheaper in terms
of interest costs, these could be offset by
higher principal payments if the rupee
falls against the dollar at the time of
redemption. And while a sovereign
bond will expand the set of investors
who buy in Indian debt, Rajan suggests
R. JAGANNATHAN that this may only bring in “faddish”
is editorial director, ‘Swarajya’ magazine investors who buy when India is “hot”
and flee when it is not.
If one looks closely at each of Rajan’s
counter-arguments, the real one is this:
the National Democratic Alliance (NDA)
government offered Resurgent India
Bonds with similar currency protection.
In 2000, this was followed by the India
Millennium Deposit scheme, once
more with government taking the
exchange rate risk. As soon as Rajan
took over as RBI governor in 2013,
banks were encouraged to raise dollar
deposits at a subsidized forward cover
rate of 3.5%, nearly half the normal cost
of hedging in the market.
Put simply, the sovereign and the

The advent of inclusive

What if the government borrows today central bank have always taken on the
in dollars and, at the time of repayment, exchange rate risks involved in raising

I
t is interesting how committed has to fork out more since the rupee dollars over nearly three decades since
globalizers suddenly turn near- may have depreciated, as has been the 1991, and the fact that this time it is the
nationalist when it comes to sover- norm so far? Implied in this is that rupee sovereign itself raising the debt is

family welfare policies eign borrowings in non-rupee debt.

The Union budget presented by
Nirmala Sitharaman indicated that
India would be raising a sovereign debt
debt is always more manageable even if
the outstanding sums go out of whack.
We need to question the latter
assumption first. Underlying it is the
hardly going to worsen the risks related
to adverse exchange rate movements.
Second, it is not a given that the rupee
will keep depreciating. On the contrary,
issue this year to benefit from lower logic that if inflation somehow rises, the if the government goes the whole hog to
global rates, but barely did she make the nominal value of the debt remains the increase foreign direct investment in
Several corporations have decided to extend welfare benefits to their employees’ partners announcement that most former same, and so the government will be several new areas, as the budget has
Reserve Bank of India (RBI) governors, paying back in depreciating rupees. proposed, and our relative inflation rate
regardless of their marital status and sexual orientation. The idea deserves to catch on from C. Rangarajan to Raghuram Rajan, This argument boils down to something compared to the US and Europe
have come out strongly against the idea. more worrying: It is okay to cheat remains just 1.5-2.5% above theirs, the
Rajan, in a well-argued piece in The domestic investors by letting inflation rupee may not depreciate that much. It
Times Of India, offers several arguments take care of repayments, but foreign could even appreciate if dollar inflows

F
or some time now, an inclusive soci-
ety has been at risk of turning into
just another shibboleth—something
that everyone is in favour of, but few
take as a categorical imperative to be
acted upon. Change, however, has
been in the air as well. Last year, the Supreme
Court quashed a colonial-era law that crimi-
nalized homosexuality. Long overdue though
it was, it seems to have given fresh wind to the
principle that nobody should suffer any form
of discrimination on the basis of identity, be it a
person’s sexual orientation or any other social
marker. That the corporate world should
embrace this precept is of singular importance
for the simple reason that it claims to place a
premium on “best global practices”. Citigroup
Inc. is the latest to declare a shift in policy that
would extend its family-welfare benefits to an
employee’s partner regardless of gender and
marital status. A live-in of any sex would thus
be eligible for the company’s health insurance
coverage, relocation expense claims and so on.
Accenture and IBM, among others, have had
Since live-ins typically expect no company against sovereign dollar borrowings. investors will not take this lying down. expand substantially over the coming
benefits, the idea being so novel, they may Some of them are valid, but the overall The rest of the arguments are neither years. Given that China is now less
tenor seems like too much scare-mon- here nor there. “Hot” money is even attractive as a destination and high-re-
remain unaware of these and their partners gering over an issue that is small in the now flowing in and out of stocks and turn investment opportunities in
may fail to sign them up for the same. Yet, the context of the country’s overall foreign bonds. RBI data shows that nearly $260 Europe, the US and Japan are limited, is
far bigger foreseeable problem would be the exchange reserves. billion of portfolio money is invested in it logical to assume that foreign direct
fear of office gossip. This applies especially to Rajan makes the following arguments stocks and debt, as of March 2019, and if investment will not boom in India in a
same-sex alliances. Such marriages are not against sovereign borrowings in dollars. this money decides to flee, it can rock world awash with capital?
First, he rubbishes Sitharaman’s claim the forex markets. This writer is neutral to the idea of
recognized in India, office cultures are usually that India’s overall low sovereign exter- This brings us to the core of Rajan’s sovereign borrowings denominated in
a slice of the larger society from which recruit- nal debt position is a good enough rea- argument against a sovereign bond dollars, but surely it cannot be overly
ment is done, and so long as social attitudes do son to borrow more abroad. Second, if issue: the possibility that you may have risky to borrow, say, $20-40 billion over
not assure same-sex couples the comfort they the idea was to fund domestic borrow- to pay more if the rupee depreciates. the next few years, when there is little
need to “emerge from the closet”, as it were, ings from foreign sources, this can be There are two counters to this. First, risk of dollars fleeing the country in
done as easily by raising the limit on for- hasn’t borrowing in dollar-denomi- panic and foreign exchange reserves
employees may not feel confident enough to eign investments in government rupee nated debt, with the government taking stand at a healthy $425 billion plus. In
reveal their private life choices to their bonds. And it is not as if sovereign dollar on exchange rate risks, always been our these circumstances, crying wolf over a
employers. Making unconventional relation- bonds will reduce the issue of rupee No. 1 remedy for any tight situation? In sovereign dollar bond issue seems a tri-
ships official for the sake of company records is bonds. This may have to be done by the 1991, Manmohan Singh’s pro-reform fle premature. The time to worry about
not as easy as it sounds, given that the lifting of RBI selling its own bond holdings to budget provided exchange rate cover it will be after four or five years, when
sterilize the dollar inflows involved. for an issue of dollar-denominated we know how the rupee will behave.
a legal prohibition (in the case of men) is not
the same as public approval, and it’s not clear if
the gap is closing.
But then again, maybe that is the whole
point. By allowing for live-ins of either gender
to be signed up for family benefits, companies
signal a neutrality that encourages their staff to www.livemint.com New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Chandigarh*, Pune* Friday, July 17, 2009 Vol.3 No.169 Rs. 3.00 24 PAGES
+ 4 PAGES MARKETS WATCH

such a policy in place, and it’s about time that it put aside their qualms and openly claim them. VIEWS: Cold wind from
Washington >22
WSJ: JPMorgan’s profit soars 36%

becomes the norm across all industries in the This in itself could set new standards of what’s EXCLUSIVE PARTNER
in June quarter >17
BOX TRUTHS: English releases continue
to score over Hindi ones >6

formal sector. considered usual, which would be much of the

SENSEX 14,250.25 æ 2.99 NIFTY 4231.40 æ 2.10 DOLLAR Rs48.67 Æ Re0.04 EURO Rs68.61 Æ Re0.16 GOLD Rs14,825 Æ Rs80 OIL $62.08 Æ $0.03

In order to have a
QUIET DECLINE NEW METAL

What’s inside Vedanta to enter steel

Of course, a change on paper does not
BJP almost
battle of inclusion won. Once an open culture business with partner
Above normal rainfall over central India, the west coast
and Orissa in the 8-15 June period has brought down the
overall monsoon deficit to 27%. As of 30 June, the deficit

invisible in
stood at nearly 54%. The weather office has forecast wide-
spread rainfall in the next five days in most regions of B Y B AIJU K ALESH sources is Agarwal’s holding
the country. >P10 baiju.k@livemint.com company and owns control-

meaningful impact,
························· ling stakes in Sterlite Indus-
LEADING THE NEWS MONEY MATTERS MUMBAI
tries Ltd, Sesa Goa, Vedanta

E
amount to a change in practice—at least not takes hold in corporate offices, it would surely
India and Pakis- Bond prices rose and yields ntrepreneur Anil Agarwal Aluminium Ltd and Konkola

Lok Sabha
tan in a joint fell as the Reserve Bank is looking to enter the steel Copper Mines Plc. in Zambia.
statement say said it would borrow an business—with a partner. “We are iron ore producers
action on ter- average Rs11,000 crore Sesa Goa Ltd, which ac- and not specialists in making
rorism should a week till September quired VS Dempo and Co. Pvt. steel. We will partner with
not be linked to instead of Rs15,000 crore Ltd for Rs1,750 crore in June, somebody who can provide us
peace talks between the announced earlier. >P15 has begun talks with a few Jap- technology and management,”
two countries. >P2 *** S. BURMAULA/HINDUSTAN TIMES anese and European steel Agarwal said in a telephone in-
*** L&T’s first quar- Even the marginal companies for building a steel terview from London after

right away. Consider the complications. influence the rest of society in time to come.
India has selected two sites
where US firms can build
nuclear reactors and the
announcement is likely to
be made during Hillary
Clinton’s visit. >P19
REAL ESTATE
companies should value
ter profit more
than tripled to
opposition parties plant in India, said Agarwal,
the chairman of Vedanta Re-
Sterlite Industries raised $1.5
billion (Rs7,305 crore) through
Rs1,598 crore have been more active sources Plc. American Depositary Shares
after it sold and visible than the The London Metal Ex-
11.49% stake in change-listed Vedanta Re- TURN TO PAGE 2®
UltraTech. >P6 Congress’ main rival
B Y R UHI T EWARI &

Sky-high plans S ANTOSH K . J OY

Of turning point MARK TO MARKET

Live-in relationships are okay under Indian Playing change agent on this issue may or may
The realty boom in India had a
number of developers announc-
ing plans to construct the “tall-
est” building. But many of them
are yet to take off. >Pages 8 & 9
CORPORATE NEWS
·························
MANAS CHAKRAVARTY
NEW DELHI
in credit growth
W
diversity and inclusion
hen the Opposition 3 July, the y-o-y growth in
on Wednesday de-
manded the Centre and emerging bank credit was 16.3%. As the
accompanying chart shows,
declare that the country is af-
flicted by drought and offer fi-
Leading the charge: Sharad Yadav.
market risks the y-o-y rate of growth of
bank credit had been falling
nancial assistance to farmers, val parties see this as another continuously, from 18.8% on
ECONOMY & POLITICS it wasn’t leader of Opposition instance of the growing invisi-
I n yet another sign that the

law, as recent precedents have established, so not win immediate board approval, even if
A Bill that would have al-
lowed private companies
in West Bengal to acquire
land on their own for
L.K. Advani or any other repre- bility of and inertia in the BJP. economy is getting better, TURN TO BACK PAGE ®
sentative from the main oppo- Yadav, whose party has 20 the year-on-year (y-o-y) rate
sition Bharatiya Janata Party members in the lower house of of growth in bank credit has ALSO SEE
(BJP), but Janata Dal (United), Parliament, is also the conven- edged up for the first time this

from day one.

NTC may sell the defunct
Finlay Mill at less than the
reserve price of Rs710 crore
developing SEZs and infra-
structure projects, lapsed
as the ruling CPM failed to
convince its allies. >P4
***
or JD(U), leader Sharad Yadav
who raised the issue and initi-
ated the discussion.
Analysts and members of ri-
or of the BJP-led National
Democratic Alliance (NDA).
TURN TO PAGE 3®
fiscal, apart from the very
marginal improvement in the
data for 19 June. Reserve Bank
of India data shows that, as on
>MARK TO MARKET: Reality check on
L&T’s new orders >P14
>Bajaj Auto net up 67% on higher
realization from export sales >P14

long as both partners are consenting adults, included as part of a firm’s corporate social
as the participants bid were
well below that level. >P7
***
Roche plans to move the SC
against Cipla which was al-
lowed by the HC to sell the
generic version of the drug
Tarceva. >P4
Govind Sankaranarayana
says that Gen Y, which is
multidimensional and tech-
savvy, is the greatest
Outlook turns
resource of a company
and should be managed
sunny for Sensex
professionally to get
maximum returns. >P20 B Y R AVI K RISHNAN
ravi.k@livemint.com

even if their rights and obligations remain responsibility agenda, but every business
VIEWS ·························
MUMBAI
The country has
turned its focus to
higher education but
we should not ne-
I ndian equities may have tak-
en a break on Thursday
following a two-day rally that
glect the education recouped losses after the
and development Union Budget, but fund

C HR I STI N E TSA I
of young children, managers and analysts predict
a sunny outlook as rosier cor-

unclear to others. While this is only to be leader knows that employee satisfaction
says Rohini
Nilekani. >P22 porate results for the quarter
ended June emerge and
the government tries to calm
markets with reform-friendly

QUICK EDIT TURN TO BACK PAGE ®

The path to capitulation

expected of a cohabitation arrangement that counts. Caring for the loved ones of those who
A s the saying goes, talk is
cheap. India made any
talk about curbing terrorism
by Pakistan dirt cheap on
Thursday in Egypt.
The joint statement issued
after the meeting between
Green shoots in
Saeed, a Lashkar-e-Taiba
leader, is about to be let off.
Once action on terrorism is the IPO market
delinked from the composite
dialogue, the focus is likely to B Y N . S UNDARESHA
shift to Kashmir again. While S UBRAMANIAN
India argues that there are feedback@livemint.com
·························

does not feature marriage and the public avow- work for the company is all it takes. It’s only
prime ministers Manmohan
Singh and Yousaf Raza Gilani
said that action on terrorism
“should not be linked to the
composite dialogue process”.
What more could have Pa-
kistan asked for? It’s been
more than seven months since
the Mumbai attacks and no
other issues at hand, Pakistan
gives primacy to Kashmir.
With a pro-Islamabad US re-
gime, pressure on India to
make concessions on Kashmir
will now be inexorable.
Did our leaders buckle un-
der US pressure without a
fight? More than anyone else,
MUMBAI
W hen timeshare company
Mahindra Holidays and
Resorts India Ltd debuted on
the National Stock Exchange
on Thursday at 5% above the
price at which it sold shares in
its initial public offer (IPO) in

als that usually go with it, it could perhaps also rational for human resource policies to
one has been brought to jus- the families of those killed in June, it became the first large
tice. In fact, the one person in Mumbai deserve an answer to firm in a year to list on India’s
the dock, Hafiz Muhammad the compromise with Pakistan. biggest equities market by

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

result in negligent behaviour in some cases: acknowledge as much.

MY VIEW | EX MACHINA

A three-point plan to improve tech policy formulation

Jordan Barry and Elizabeth Pollman to
RAHUL MATTHAN describe the strategy where “changing the
law is a significant part of the business plan”.
In recent times, we’ve seen many exam-
ples of regulatory entrepreneurship. The
sharing economy came to be because entre-
between inventory and marketplace models Here, then, is my three-point suggestion trying to come up with more and more
in e-commerce and why our telecom regula- for what the government should start doing detailed regulations for technology that is
tions have features so unique that global if it wants to better regulate the technology changing too quickly to govern. It is impossi-
cloud service providers carve India out of sector. ble to make laws future-proof. This is why
their network design like an island where (1) Identify the real objective: Too often, we should never aim to have our laws articu-
the rules of physics that apply to rest of their technology laws end up missing the real late anything more than broad principles,

T
echnology regulation is hard. Govern-
ments struggle to keep up with all they
need to do to stay abreast of new tech-
nology. No sooner do they figure out what
restrictions to impose on a particular busi-
ness than that business itself becomes yes-
terday’s news and they find themselves hav-
ing to deal with a whole new set of challen-
preneurs promoting their app-based ride-
hailing and apartment-renting businesses
consciously chose to operate in a regulatory
grey zone that potentially violated taxi and
hotel regulations, knowing full well that had
they sought permission before rolling out
their services, they may never have been
permitted to scale up as quickly as they did.
global network have to be suspended. issues they should be addressing, focusing leaving it to the executive to translate these
Regular readers of this instead on hot-button principles into specific details. At the very
column will know that I issues that we are led to least, regulations need to be technology-
often use my column A new legislative believe are more immedi- neutral—both in the definitions of their
inches here to highlight ate. When we regulated the terms as well as in the specific procedures
the flaws in various tech- framework sharing economy, our they spell out. The Personal Data Protection
nology regulations. It is my focus was on making these Bill drafted by the Justice Srikrishna Com-
hope that by shining a light
could lay out a new business models com- mittee is an excellent example of how to set

is partner at Trilegal and author

ges. As a result, the regulations that govern
the sector are a patchwork quilt of rules,
of ‘Privacy 3.0 : Unlocking Our
Data Driven Future’
guidelines and notifications that individu-
ally make sense but when viewed as a whole
look like something Piet Mondrian dreamed
up.
Bureaucrats are simply not equipped to
anticipate the outcomes of new technolo-
gies. As a result, laws only get enacted when
the harmful consequences of a given busi-
nesses model become so apparent that they
are impossible to overlook. This is most
acute when businesses use technology to
transform established industries, and in par-
ticular when they indulge in regulatory
entrepreneurship—a term coined by Prof.
Regulators particularly detest models that
straddle multiple sectors without fitting
neatly into one bucket or the other. They
like certainty and abhor ambiguity—which
is why they try and force-fit every new tech-
nology model into convenient pigeon-holes
so that they can regulate them better. This is
how the government of Karnataka ended up
classifying ride-hailing services as radio-taxi
operators—even though doing so had the
absurd consequence of requiring drivers
install physical meters in their vehicle when
the real reason behind the business model
was to provide a more convenient mobile
alternative. This is also why we’re the only
country in the world that distinguishes
on consequences over-
looked or misunderstood,
blueprint for ply with the rules that taxi
companies and hotel busi-
out broad principles in the statute while
allowing for a greater level of detail to be
subsequent revisions of the
law might consider these
framing policies nesses had to follow. As a
matter of fact, all these
spelled out through “codes of practice” that
are issued subsequently.
suggestions favourably and that won’t get businesses were doing was (3) Get help: Technology is complex. If it
make necessary amend- providing a platform on is to be effectively regulated, it needs to be
ments to change the regu- outmoded which offers could be well understood. As astute as our bureau-
latory outcome. But this is exchanged. We might have crats are, they are generalists and, in this age
legislation in hindsight— been better off regulating of specialization, cannot hope to appreciate
an exercise that rarely serves any purpose them as platforms, requiring them to ensure the many layers of nuance necessary in order
beyond the purely academic. It would be far transparency and traceability in their opera- to properly regulate technology. They
more useful if we could develop a framework tions so that the customers using their servi- should never attempt to go it on their own,
that the Indian government could use while ces could be protected against unfair trade but instead should actively co-opt experts
framing future technology policies—a work- practices. from all relevant fields—behavioural econo-
flow they could follow as they go down the (2) Think principles not details: Too often, mists, technologists, lawyers and the like—
path of regulating newer areas. our technology laws get lost in the weeds so that the laws we pass can be truly robust.
 VIEWS WEDNESDAY, 17 JULY 2019
NEW DELHI 15

MY VIEW | CAFE ECONOMICS OT H E R VO I C E S

The 1969 bank nationalization Follow the Emiratis’ lead out of Yemen

T he conflict in Yemen is unwinnable, dangerous for the region and remarkably

did India more harm than good cruel. So the drawdown of troops by the United Arab Emirates, the biggest out-
side ground force backing the Saudi-led intervention that has turned a civil war into
a humanitarian disaster, should be an example for everyone else involved. Given
global revulsion with the Yemen war, which has created what the United Nations
calls the world’s greatest humanitarian crisis, the country’s tacit recognition that
the conflict is a waste of lives, resources and national stature is a dose of sanity. The
It was the pivot of a political economy strategy of the 1970s—when economic growth barely outpaced population growth United Arab Emirates has not publicly explained its pullback, evidently for fear of
irritating its Saudi allies. But diplomats say the Emiratis, who sent at least 5,000
troops to Yemen to train and lead a mélange of pro-government troops and militias,
HT have wanted out for some time now... The conflict in Yemen is a composite of many
struggles, old and new, local and regional. It traces back to the Arab Spring, when
the ouster of a strongman president led to a rebellion by northern Houthi rebels.
The Yemen conflict is bad enough without being embroiled in the greater power
struggle in the Persian Gulf. The only solution there is a negotiated peace agree-
ment among the Yemenis on sharing power and resources, and Saudi Arabia should
seek its own agreement with the Houthis to end cross-border drone and missile
strikes.
The New York Times

NIRANJAN RAJADHYAKSHA
is a member of the academic board of the
Meghnad Desai Academy of Economics. Read A short-sighted refugee policy erodes civility
Niranjan’s previous Mint columns at
www.livemint.com/cafeeconomics
S trategic foresight is an essential requirement of prudent action in a rapidly
changing world, yet is all the more difficult due to the very pace of change. This
paradox is at the heart of warnings about how foolish is a short-sighted approach
to the global buildup in numbers of refugees, asylum speakers and displaced peo-
ple. Filippo Grandi, head of the United Nations High Commission on Refugees

T
he Indian financial sector underwent a
tectonic shift 50 years ago this week,
when the Indira Gandhi government
nationalized the 14 biggest commercial
lenders on 20 July 1969. The second
volume of the official history of the
Reserve Bank of India describes bank nationaliza-
tion as the single-most important economic policy
decision taken by any government after 1947.
Central bank historians say that in terms of the
impact, even the economic reforms of 1991 pale in
comparison.
The landmark decision came at the end of a
troubled decade. India was buffeted by economic
as well as political shocks. There were two wars—
with China in 1962 and Pakistan in 1965—that put
immense pressure on public finances. Two succes-
sive years of drought had not only led to food
shortages, but also compromised national security
because of the dependence on American food
shipments to keep hunger at bay. Fiscal retrench-
ment through a three-year plan holiday had hurt
aggregate demand as public investment was cut.
The 1966 devaluation of the rupee was an eco-
nomic success, but also a lightning rod for politi-
cal anger. The Congress party had already suf-
fered electoral setbacks in the 1967 elections. It
was headed for a split. The Naxalites were grow-
ing in strength. However, the devaluation had
helped improve the balance of payments while
the Green Revolution began to ease the food con-
straints.
India was at a crossroads. Many other countries
in Asia had switched to more market-oriented
policies in the preceding years, even within the
overall industrial policy framework. Their growth
would accelerate over the next two decades. In
India, there had been some tentative moves in that
direction during the short tenure of Lal Bahadur
Shastri. However, Indira Gandhi swung the other
way with the support of the Left. Bank nationaliza-
tion was one of her responses to the economic and
political challenges of the time.
The impact of bank nationalization can be
thought about in terms of three core areas: depos-
its, lending and interest rates. The one positive
impact of bank nationalization was that financial
savings rose as lenders opened new branches in
areas that were unbanked. Gross domestic savings
almost doubled as a percentage of national income
in the 1970s. A growing part of this was sucked up
by the government itself through increases in the
statutory liquidity ratio. P.N. Dhar writes in his
memoirs that V.K. Krishna Menon made the star-
tling claim in a private meeting with top officials
before nationalization that the government would
not have to worry about mobilizing funds once
banks were nationalized.
Banks were asked to push funds towards sectors
that the government wanted to target for growth.
Indira Gandhi told the Lok Sabha on 29 July 1969
that the “purpose of nationalization is to promote
rapid growth in agriculture, small industries and
export, to encourage new entrepreneurs and to
develop all backward areas”. This was part of the
overall political strategy to squeeze big business
houses that backed her opponents, as well as build
a new political base.
Credit planning also meant that the interest rate
structure became incredibly complex. There were
different rates of interest for different types of
loans. The Indian central bank eventually ended up
managing hundreds of interest rates. This mind-
boggling structure was brought down only after the
1991 reforms, with the central bank managing the
pivotal repo rate, while commercial lending rates
were to be decided by banks themselves.
The subsequent political economy was perverse.
Indira Gandhi said in a Lok Sabha debate on bank
nationalization: “We have no intention to set up a
monolithic agency to run all these banks. While we
must strengthen the machinery at the Centre,
there will be autonomy for each bank and the
boards will have well-defined powers. We will give
directions but these will be on policy and general
issues, not on specific loans to specific parties. We
shall be vigilant about the dangers of too much
interference—whether it is motivated by political
or other considerations.”
There are no prizes for guessing how long that
promise held. The legendary R.K. Talwar would
resign as chairman of State Bank of India in 1976
rather than bend under political pressure. The
political control of bank lending continued even
after the 1991 reforms—and the bad loan mess that
has weighed down on the Indian economy since
2012 is at least partly explained by the credit
bubble that grew under political patronage from
New Delhi. The fact that successive governments
continue to maintain a tight grip on the banking
sector shows the political importance of having
control over the credit spigots in the economy.
Bank nationalization was the pivot of a broader
political economy strategy followed in the 1970s—a
decade when economic growth barely outpaced
population growth. Average incomes stagnated. It
was a lost decade for India. There is no doubt that
exogenous shocks, such as rising energy prices or
failed monsoons, played a part in the stagnation,
but economic policy also hurt. Bank nationaliza-
tion succeeded in specific areas such as financial
deepening because of the rapid spread of branches,
but it eventually did more harm than good.
(UNHCR) says if the richest countries simply close their borders, in response they
will undermine their capacity to tackle the issue, and their civilisational values in
the longer term. In a perceptive interview with this newspaper, Grandi defined this
as the “age of egotism” in the richer world, dominated by “me first, we first, our
country first” policies and closing minds.
Ireland comes comparatively well out of Grandi’s assessment, though he criti-
cises accommodation policies and the slow handling of refugee applications... So
far this state has avoided the anti-immigrant rhetoric more common elsewhere in
Europe. The UNHCR’s valuable and steadfast pursuit of fair treatment for the
world’s 26 million refugees, 3.5 million asylum seekers and 41 million internally
displaced people deserves continued support by governments.
The Irish Times
Much potential remains for China’s economy
T he Chinese economy grew by 6.3 percent year-on-year in the first half of the
year. In the second quarter, it expanded by 6.2 percent from a year ago, the low-
est growth rate in the past 27 years. While future of China-US trade war remains
uncertain, the data left a pessimistic impression on the Chinese people. Chinese
were used to high growth rates of around 8 percent, or even double-digit figures.
But realizing a high figure is not aimed at showing off. Be it 6.3 percent or lower,
it can be seen as a good performance compared to the rest of the world. China still
leads the major economies when it comes to growth... China is seeing the largest-
ever economic transformation driven by the government’s proactive regulation.
The fundamental direction of this transformation is to put people first... At the same
time, consumption is gradually taking center stage among the driving forces of the
country’s economy.
China once experienced an overheating economy plagued by a high-level of
resource consumption and pollution, severe corruption. Although GDP data was
high, it was not sustainable and there was a large amount of waste, which failed to
improve people’s lives. The economic adjustments over the years are undoubtedly
correct... China has enormous economic potential. There is still much room to
reshape ordinary people’s life, which is the core of the potential.
Global Times, China
Can Japan justify military involvement?
T he U.S. government of President Donald Trump has called for an international
military coalition to be formed to safeguard commercial shipping in the Strait
of Hormuz and other areas of the Middle East. The move is aimed apparently at
ensuring freedom of navigation in the wake of a series of attacks on tankers near
the Strait of Hormuz. Japan relies more on the strait for its imports of crude oil than
any other country as over 80 percent of oil sold to Japan is transported through the
area. Japan should try to proactively ensure the safety of its oil shipments through
the strait. Still, Tokyo needs to scrutinize whether there is just cause for an interna-
tional military alliance in the area...
One cannot help but suspect that Washington’s true goal is to form an interna-
tional coalition against Iran... Questions remain as to whether the Trump adminis-
tration’s aim is appropriate. However, there is no evidence to prove Tehran’s
involvement and support for the claim has not spread among other countries,
including Japan... Even if it is concluded that there is sufficient cause for such
action, it remains unclear what laws can be applied to the deployment of Japanese
Self-Defense Force (SDF) personnel to participate in such an arrangement... The
legislature should not evade discussions on the matter simply because campaigning
for the July 21 House of Councillors election is underway.
The Mainichi, Japan

GUEST VIEW

The contours of a sustainable disinvestment platform

chant bankers and advisers through open
ASHOK PAL SINGH advertisements, convening inter-ministerial
meetings, obtaining cabinet approvals to
undertake transactions are the kind of givea-
ways that make insider trading redundant.
The oversight of the Comptroller and
time and effort disproportionate to returns
in a target-oriented system. Staff unions and
officer associations of CPSEs fight subver-
sive battles. Past investors haven’t had it
easy, be it in VSNL, Centaur, HZL or Balco.
The dream solution would be if the govern-
shareholder—the government. This will be
akin to India’s government transferring
ownership of all CPSEs to an entity man-
dated to make strategic investments and
sales on a commercial basis. The transfer to
a state-owned company would also blunt the
the Singapore Companies Act. The catch is
that it is designated a Fifth Schedule entity
under Singapore’s constitution, with certain
safeguards. For instance, drawing on Tem-
asek’s past reserves and the right to appoint,
terminate or renew board members are sub-

B
udget 2019 has again put the focus on
disinvestment. To place it on a sus-
tainable platform, there is a case to re-
look the organizational structure for disin-
vestment. As things stand, the work of the
department of investment and public asset
management (Dipam) is hamstrung by a
number of institutional impediments. Tem-
Auditor General and the Central Vigilance
Commission, and the dragnet of the Central
Bureau of Investigation preclude deviating
from precedence, subjective calls, risk-tak-
ing or innovation. While initial public offers,
offers for sale, follow-on public offers and
exchange-traded funds are the usual disin-
vestment methods, bulk deals and institu-
ment exits ownership without ruffling feath- politically sensitive issue of privatization. ject to the approval of the president of Singa-
ers, and companies take Temasek is both an pore. If the Indian counterpart were to be
flight as professionally active shareholder and similarly structured, it would transcend the
managed and commercially We need a investor, and rebalances its susceptibilities of a CPSE to political and
driven business entities. portfolio from time to time. bureaucratic interference.
Temasek, owned by the Temasek-like Decisions to invest, divest Temasek’s board comprises 13 mem-
government of Singapore, or hold portfolio compa- bers—mostly non-executive and independ-
provides a compelling
entity that nies are based on its intrin- ent business leaders from the private sector.

is a member of the Postal

Services Board and was
formerly a joint secretary in
Dipam
asek Holdings offers an inspirational model.
Dipam’s limitations begin with a lack of
technical expertise, staffed as it is entirely by
civil servants with no prior experience of
capital markets. Mere administrative acu-
men is insufficient to extract the best value
from assets built assiduously. Transferable
jobs detract from institutional memory and
specialization. The lateral induction drive of
the government ought to have zeroed in on
Dipam. The system, however, does not trust
outsiders with sensitive work.
That said, the best investment bankers
would fall short were they to work within the
confines of the financial rules and office pro-
cedures of India’s government. Hiring mer-
tional placement plans are hot potatoes.
The overlapping remit of Dipam and
administrative ministries controlling differ-
ent central public sector enterprises (CPSEs)
and the independent roles of companies and
their boards make the disinvestment proc-
ess convoluted.
A litany of other issues detract from savvy
disinvestment. There is no political consen-
sus on strategic sales leading to privatiza-
tion. There are no accepted valuation norms
that pass the test of post-facto scrutiny of
audit and anti-corruption agencies. Past dis-
investments have risen from the grave to
haunt key protagonists after retirement.
Strategic sales are tedious, and consume
model. This is a known
solution that has never
functions
crossed the bureaucratic
Rubicon in India. It beck-
independently
ons the attention of the of its owner,
political executive, though
it will take some working the government
beyond what the bureauc-
racy will suggest. It is worth
highlighting some key attributes of Tem-
asek now that we have a government not shy
of pursuing an offbeat agenda.
Temasek was created in 1974 to hold and
manage the Singapore government’s assets.
Guided by business tenets, it operates with
full flexibility without the involvement of its
sic value test. It is impor-
tant to understand that to
be either a buyer or seller
and not both comes with
costs. A mandate to buy
and sell is critical. Other-
wise, the market games
you, as it does the Dipam,
which only sells.
The Temasek portfolio covers a broad
spectrum of sectors such as financial servi-
ces, telecommunications, media and tech-
nology, transportation, life sciences, con-
sumer, real estate and energy. This ought to
be the case with its Indian counterpart.
Temasek operates under the provisions of
It has a multinational team of nearly 500
people and manages a net portfolio of over
$230 billion. Such an independent board, a
multinational team and an international
canvas will need to be provided in our case.
The call then is to create a Temasek-like
entity, transfer ownership of CPSEs to it and
allow it to function independently of the
government as both a holding and an invest-
ment company. This can be done either by
creating a new company, or by enlarging the
mandate of the National Investment and
Infrastructure Fund, which avoids stepping
on the toes of Dipam as good bureaucratic
practice, their synergies notwithstanding.
These are the author’s personal views
16 WEDNESDAY, 17 JULY 2019
NEW DELHI POLICY

P O L I C Y 1 0 1

How government taps the super

rich in its efforts to help the poor
PM’s categorization of the population into 2 classes of poor and well-off is defining the nation’s economic policies
Gireesh Chandra Prasad m MINT GRAPHITI
taxes in India only on income earned
gireesh.c@livemint.com in India while those who spend Improving subsidy delivery and schemes for financial inclusion
NEW DELHI Billing the rich enough time in the country to fall in are very effective ways of addressing income inequality. Taxation
Finance Bill FY19 proposed to increase the surcharge on income-tax outgo of individuals the class of ‘resident and ordinarily is just one of the several instruments. MINT

A
fter his historic victory
at the end of a long-
drawn election cam-
paign, Prime Minister
Narendra Modi said in
his victory speech on 23 May that
according to him, only two castes
existed in the 21st century India. One
of them was of the people who want
to come out of poverty. The other, he
said, was of those who will lift the
poor out of poverty. “We have to
empower them both,” he said.
Modi’s categorization of India’s 1.3
billion people into two distinct
with earnings above 2 crore to raise resources for welfare schemes. Here is a comparison resident’ have to pay taxes in India on
of the maximum marginal tax rate applicable on high income earners in different countries.
Maximum marginal tax rate* (in %)
their global income.
The reaction to the surcharge
increase has been mixed. According
Progressive taxation
50 45 45 45 45 45
42.7
37
35
to Archit Gupta, founder and chief
executive officer of ClearTax, a tax-
related services provider, the sur-
will help bring down
charge increase will create a tax arbi-
trage based on how individuals are
set up. Some may choose to deliver
their services through limited liabil-
income inequality
22 ity partnerships (LLPs) to reduce tax
outgo. Partners in firms could Shamika Ravi
rework the components of remuner- feedback@livemint.com
ation and profits to adjust their tax

classes of the poor and the well-off,
rejecting conventional notions of
caste that shaped India’s politics for
long, is defining India’s economic
policies in a more pronounced way in
his second term in office. Finance
minister Nirmala Sitharaman who
presented the Union budget for
FY20 in Parliament earlier this
month spent the bulk of her two-
hour speech detailing the steps her
government was taking for the poor,
small businesses and farmers. In a
budget that proposed a whopping
20% jump in the central govern-
ment’s budget spending to over
₹27.8 trillion in FY20 from what was
spent a year ago as per provisional
estimates, Sitharaman had to explore
new revenue sources. The choice
was obvious: Tap those who can pay
a little more in taxes to help the poor
come out of poverty. Sitharaman
proposed an increase in surcharge
levied on income tax outgo of indi-
viduals with earnings more than ₹2
crore, in two slabs. It was raised from
15% to 25% where the income is
between ₹2-5 crore and from 15% to
37% for those earning more. In effect,
a person earning in the range of ₹2-5
crore will pay 39% tax (called the
highest marginal tax rate for that per-
son) on the income exceeding ₹2
T
outgo. Tax rates have to be a function he Union budget for FY20 has set forth the government’s
Belgium France Germany Spain China UK India US Hong Singapore of economic and social conditions in vision for the next five years, with a focus on investment.
Kong
*Applies to income above specified threshold. In case of India, 42.74% applies on income
a country including the living stan- The goal of making India a $5 trillion economy is a realis-
above 5 crore. For those with income in the 2-5 crore range, it is 39%. Source: Cleartax, Deloitte India dards and the social security systems tic one. We look forward to seeing the specific economic strate-
available to citizens, said Neeru gies that are being worked out by the government to attain the
WIDENING THE TAX NET Ahuja, partner, Deloitte India. “It is targets. On rationalization of taxation, the priority, rightly, has
not fair to compare the tax rates of a been accorded to extending the lower 25% corporate tax rate to
12,000 crore to be HIGHER taxes on SOME analysts say tax GOVERNMENT
developing economy like ours with all companies with annual sales up to ₹400 crore that the
collected from top individual incomes, increase on personal dismisses fears of high
earners in a year by lower corporate tax income may income earners that of developed countries with finance minister said would cover 99.3% of companies in the
the government after rate, incentives for discourage high changing their strong social security backup,” said country. Making corporate tax rate more competitive has to be
the higher surcharge manufacturing define earners from domicile due to Ahuja. a top agenda as it will make India more attractive as a destina-
comes into effect India’s tax policy investing further tax increases tion for doing business. I hope this can be reduced further and
FPIS extended to all firms.
PARAS JAIN/MINT
In the meanwhile, foreign portfolio For a country like ours, having progressive personal income
crore, and a person earning more sale of shares. The profit share that ing their domicile to other countries investors (FPIs) have raised a hue and tax rates is very natural. Progressive taxation has a direct impact
than ₹5 crore will pay 42.74% on the partners in firms get are not subject with more benign tax rates but were cry that a section of them that are on reducing income inequality. Our taxation rates, however,
income exceeding ₹5 crore. The sur- to income tax and therefore does not quick to add that such a move was not organized as trusts may get hit by the must be based on our own realities. This means that we need
charge increase soon got a name: attract surcharge either, explained easy to execute. The government increase in surcharge. That is empirical evidence of the relationship between progressivity of
Robinhood tax. promptly dis- because certain trusts may be assess- personal income tax with tax evasion, investment and eco-
missed worries able as associations of persons. The nomic growth within India. Is there evidence to suggest that an
WHO’S Nobody takes a decision to leave that high earn- finance ministry is examining their increase in the marginal tax rates for certain brackets will
IMPACTED the country (India) on the basis ers may flee the grievance and may come out with a impact compliance or investment decisions? The govern-
The increase is country just solution as the surcharge increase ment’s overall focus on rationalizing corporate tax rate, how-
applicable to a of a tax rate increase by a small because of the was not aimed at them, a person ever, is the need of the hour. Taxation is one of the tools of reve-
host of tax pay- tax change. familiar with the government’s nue mobilization. This, however, must be complemented by
ers including measure. Revenue secre- thinking said on condition of ano- strategic disinvestment.
individuals, AJAY BHUSHAN PANDEY tary Ajay nymity. FPIs are usually set up as cor- The govt’s focus In India, the first order concern
directors in Revenue secretary Bhushan Pan- porate bodies or as partnerships but on rationalizing remains that of reducing poverty. We
companies on dey said in a not as trusts. “Increasingly, sur- have done a tremendous job of reduc-
the remunera- post-budget charge is being used a means to corporate tax ing poverty over the last 25 years. But
tion that they receive, partners in Amit Maheshwari, partner at Ashok interview that people’s attachment increase collections, whereas a more rate is the need we still have a large number of people
firms on the remuneration that Maheshwari & Associates. to their country was far too strong to comprehensive approach to reform- of the hour for in absolute poverty as well as people
receive, shareholders who get divi- Analysts said some of their clients be affected by an increase in their tax ing the tax structure is required,” said Indian economy just above the poverty line who
dend or benefit from capital gain on enquired about possibilities of shift- outgo. Non-residents need to pay Gupta of ClearTax. remain vulnerable to income shocks.
The focus on growth as a paramount
policy priority in this budget, therefore, is very welcome.
Improving subsidy delivery and schemes for financial inclu-
sion, health and housing are very effective ways of addressing
income inequality. Taxation is just one of the several instru-

Foreign portfolio investors bear the brunt of taxation flip-flops ments of addressing income inequality. Improving access to
financial instruments, healthcare, electricity and cooking gas
and investing in rural infrastructure for basic amenities are
important redistribution policies of the government. From that
Mukesh Butani and unwieldy. Firstly, FPIs as a class of investors represent perspective, I do not think India needs to have any fear of ine-
feedback@livemint.com pension funds, investment trusts, hedge funds, asset man- quality worsening seen in OECD countries. Schemes such as
agement companies, university endowments, charitable the one to provide clean drinking water may have an upfront

A
senior official at the finance ministry remarked a day
after the budget that the most complex part of the
Finance Bill proposals are contained in Part I of the
first Schedule. Hidden in that part was application of addi-
tional slabs of surcharge, subjecting foreign portfolio inves-
tors (FPIs ) structured as Association of Persons (AOP),
besides individual taxpayers, to higher rate of effective tax.
Progressive taxation is often used mitigate societal ills associ-
ated with income inequality. The fact that firms and compa-
nies were spared shows that businesses were consciously left
out and by that logic, its application to FPIs is an unintended
consequence. The government’s reluctance to clarify has
merely raised anxiety levels.
FPIs have borne the brunt of India’s taxation flip-flops. The
2018 budget proposal to levy long-term capital gains (LTCG)
tax came at a time of slowing growth. With over $430 billion
invested in India, FPIs have been growing steadily. FY18
attracted $18 billion after negative net investments in the pre-
vious two years. FPIs have generally been inspired with bold
decisions on the economic front. This coupled with
announcements in the past 18 months to allow FPIs to invest
up to 25% in category III alternative investment funds , real
Budget proposals to enhance statutory limit of FPI investments
up to FDI sectoral norms are well intended. PTI
estate investment trusts (REITs) and infrastructure invest-
ment trusts (InvITs), all three categories structured as AOP,
kept up the pace of FPI investments.
Imagine an investor’s anxiety on LTCG tax levy of 14.25%,
which was exempt until 2018 and now a tax arbitrage of 5%
(on short-term gains) between an FPI structured as a trust
and corporate, and that too retrospectively from 1 April 2019?
Options for FPIs to rework their structure is impractical
trusts, sovereign funds, etc., by virtue of the Securities and
Exchange Board of India regulations. Secondly, from a busi-
ness structure standpoint, large investment groups who have
dedicated funds are invariably structured as trusts in the US,
companies in Luxembourg and partnerships in other juris-
dictions. Besides, regulations in multiple jurisdictions such
as the US and the UK consider such portfolio investors as cor-
porations irrespective of their legal form. To apply differen-
tial rate of taxation for same class of taxpayers, based on their
legal status, sounds irrational, besides discriminatory and
against the grain of economic theory.
Budget proposals to enhance the statutory limit of FPI
investments up to FDI sectoral norms and permitting FPIs to
subscribe to debt instruments of REITs and InvITs are well
intended. FPIs shall however weigh such proposals with cau-
tion keeping in mind predictability of the tax regime. Even
the Laffer Curve economic theory, which is suggestive of
incremental increase in tax rates beyond a certain point prov-
ing counterproductive to raising tax revenue should compel
India to relook at the recent budget proposals.
Mukesh Butani is founder of BMR Legal. The views
expressed are personal.
cost, but these are not just welfare schemes, they will enhance
long-term productivity of the nation.
In a dynamic economy, some sectors may need to be incen-
tivised. Tax breaks given to specific sunrise industries are part
of such policy. But it must come with an expiry date. Businesses
must know that this is for a specified number of years and the
government should have well planned exit strategy from such
policies. The same approach holds good for schemes like the
rural employment guarantee scheme which has had an enor-
mous impact on poverty reduction in rural India.
The Union budget has set the goal of a $5 trillion economy.
Now we need to figure out the micro strategies at the level of
individual states and specific sectors of the economy. Like,
what would it take to double our apparel exports or to triple the
inflow of foreign tourists? At a more fundamental level, we
need to have a deeper understanding on why savings in the
economy is declining, which is a serious concern. I think we
need to set up an expert committee to ascertain this. Some of
these are expected to be part of the 100-day programme of the
government.
Shamika Ravi is director (research) at Brookings India and
member of the Economic Advisory Council to the Prime Minister.

Andhra ignores Centre’s BS VI petrol, diesel likely to pinch more due to higher refining costs
concerns, to review PPAs FROM PAGE 1
HT

their retail prices. methane and oxides of nitro-

Yunus Y. Lasania sider his decision, as “invest-
yunus.l@livemint.com ments will dry up and growth
HYDERABAD will come to a halt.”
However, the state govern-
Bharat Petroleum Corp. Ltd gen. It has sulphur content of
tion to the proposed emission
norms, the automotive indus-
fuel prices would be a double and Hindustan Petroleum 10 parts per million (ppm) try, along with its representing
whammy for consumers. Pet- Corp. Ltd did not respond to against 50 ppm in BS IV. body, Society of Indian Auto-
rol and diesel prices rose by queries emailed on Friday. Emissions from vehicles are mobile Manufacturers, has
about ₹2 each after the gov- A spokesperson for Indian one of the top contributors to requested the fuel retailers to
ernment imposed an addi- Oil Corp. Ltd said in an air pollution, which led the provide BS VI grade fuel at

I
n spite of the Centre asking
Andhra Pradesh not to can-
cel or alter power purchase
agreements (PPAs), the Y.S.
Jagan Mohan Reddy-led gov-
ernment said on Tuesday it will
review all PPAs signed in the
past five years, when the Tel-
ugu Desam Party (TDP) was in
power. It added, these PPAs
will put an annual “burden of
thousands of crores (of rupees)”
on the state.
Last week, MoS for power
and new and renewable
Energy, R.K. Singh, wrote to
Reddy, asking him to recon-
ment said it wants to “bring the
power sector back on track”.
“Should the government
remain a silent spectator to the
burden of thousands of crores
imposed annually on the state
treasury?” The government
statement added that AP was
losing ₹7 crore a day, or ₹2,500
crore annually, due to the exist-
ing PPAs. Ajay Kallam, chief
advisor to the state government
refused to comment on Singh’s
letter. However, an official,
requesting anonymity, said the
Centre’s view on investments
drying was “baseless”.
tional special excise duty of ₹1
per litre as well as a road and
infrastructure cess of ₹1 per
litre on the fuels in the Union
budget for 2019-20.
“A fuel price increase is cer-
tainly required by the oil mar-
keting companies given they
have invested substantially to
upgrade to BS VI. They need to
recover at least their cost,” said
K. Ravichandran, group head
for corporate sector ratings at
Icra Ltd. “Though it will be an
additional burden on the con-
sumers, it would be beneficial
for the environment as the fuel
Emissions from vehicles are a major contributor to air pollution.
will help reduce pollution.
However, if the extent of fuel
price increase is anything
more than ₹1 per litre, it would
be a stretch for the consumer
given the ₹2 per litre hike in
prices recently on account of
additional cess/duties.”
emailed response government at least 30-45 days ahead of the
that the “pricing In 2016, the govt the time to intro- April 2020 deadline.
of BS VI (is) to be decided to meet duce the BS 2000 Pawan Goenka, managing
decided in due the global best (Bharat Stage 1) director of Mahindra and
course”. practices and vehicle emission Mahindra Ltd, said prices of
India is shift- norms from April BS VI-compliant petrol vehi-
leapfrog to
ing to the strin- 2000, followed cles are likely to rise by
gent BS VI emis- BS VI norms, by BS II in 2005. ₹25,000-50,000 and diesel
sion norms as the skipping BS V BS III was vehicles by about ₹1 lakh over
Retail prices of petrol and government implemented the existing BS-IV models.
diesel in India are linked to seeks to arrest nationwide in With prices set to rise, some
their prices in global markets rampant pollution in most of 2010. However, in 2016, the automakers are rejigging their
and not that of crude oil. How- its major cities. BS VI fuel is government decided to meet portfolio by either discontinu-
ever, the price of crude, which said to significantly reduce the global best practices and ing diesel-powered vehicles or
makes up about 90% of the greenhouse gas emissions, leapfrog to BS VI norms by those which have low sales vol-
cost of these refinery products, especially carbon dioxide, skipping BS V altogether. ume.
is the biggest determinant in unburnt hydrocarbons or To ensure a smooth transi- kalpana.p@livemint.com
 POLITICS WEDNESDAY, 17 JULY 2019
NEW DELHI 17

In downward spiral, Cong

faces crises across states
Party faces defections, turf wars across Karnataka, Goa, Telangana, Delhi and Punjab
Anuja
TPCC chief N. Uttam Kumar anuja@livemint.com
Reddy. NEW DELHI Rainfall intensity is likely to decrease from Tuesday onwards,
according to the latest forecast by IMD. PTI

M
Cong ‘loyalists’ ore than 50 days

form group to
after Rahul Gandhi
resigned as the Con-
gress president, the
As Pak
opens
airspace,
cost for US-
Toll rises to 36 as floods
address loss in party is facing a
series of crises across key states—
from the threat to the coalition gov-
bound
flights may
come down
worsen in Bihar, Assam
Telangana polls ernment in Karnataka and defec-
by ₹20 lakh:
AI
Srishti Choudhary
tions in Goa, to intra-party turf wars bit.ly/2LUG5Cg
falling and main river Brah-
across state units. Party leaders are srishti.c@livemint.com maputra is in steady condition
Yunus Y. Lasania also wary of the crisis facing the NEW DELHI from Guwahati to Dhubri.
yunus.l@livemint.com central leadership, which they say Five rivers—the Baghmati,

P
HYDERABAD may make matters worse in other ounding rains worsened Kamla Balan, Lalbakeya, Adh-
states, too. flooding, displacing wara and Mahananda—are

I
n a sign of internal strife, a
group of leaders in the Tel-
angana Congress unit have
formed a ‘Congress Loyalist
Forum’ to address electoral
losses and weakening of the
party. The forum, led by former
MLA Marri Shashidhar Reddy
(who is also the son of former
Andhra Pradesh chief minister
Marri Chenna Reddy), has been
formed to take note of the sen-
timents among party workers,
said a senior leader.
The group is expected to
meet in the next few days.
Back-to-back defeats in assem-
bly and Lok Sabha elections
have led many to blame Telan-
gana Pradesh Congress Com-
mittee (TPCC) president N.
Uttam Kumar Reddy. “There
are people who have been in
the party here for at least 20 to
30 years, but outsiders who
don’t care for the Congress are
given a free hand,” said a senior
leader, requesting anonymity.
He said other party members
will also be consulted to work in
the same direction with them—
to take on not only the ruling
Telangana Rashtra Samithi,
but also the Bharatiya Janata
Party (BJP), which increased its
tally from a single assembly seat
in 2014 to four Lok Sabha seats
this time around. “Their vote
share jumped from just 7% to
20% between the two elections,
and the state leadership is wor-
ried,” he added.
In the December 2018 state
polls, the Congress, which had
formed a grand alliance with
the Communist Party of India,
Telugu Desam Party and the
Telangana Jana Samithi, man-
aged to win just 19 out of the 119
seats, while the TRS won a
The political crisis since Gan- millions in Bihar, Assam flowing above danger levels at
dhi’s resignation began with 12 of and other north-eastern various places in Bihar due to
its 19 Telangana MLAs merging states on Tuesday. incessant rainfall in the catch-
with the Telangana Rastra Samithi As many as 25 people have ment areas of the rivers in
(TRS). This was followed by the res- been killed in Bihar with over India, as well as at the source
ignations of over a dozen Karnataka 16 districts facing a severe del- in Nepal.
MLAs, which threatens to destabil- Party leaders are also wary of the crisis facing the central leadership, which they say may make matters worse in uge. Large-scale damage has Over 26 companies of the
ise its coalition government with other states, too. BURHAAN KINU/HT been reported from Sheohar, National Disaster Response
the Janata Dal (Secular), or JD(S). East Champaran, Purnea, Force and the State Disaster
The Karnataka Congress MLAs and Uttar Pradesh’s district units There are fears in some sections said, also requesting anonymity. Darbhanga and Response Force,
have already moved the Supreme last month. In Karnataka, the top of the party that it’s not just about The Congress is also facing Kishanganj dis- 25 people have along with 796
Court demanding their right to state leadership was continuing in the elected governments which troubles in Delhi and Punjab. While tricts. been killed in personnel, have
resign, at a time when the coalition their posts. have a wafer-thin majority, such as P.C. Chako, the Delhi in-charge, The death toll Bihar with over 16 been deployed
government is preparing for a floor “With the resignation of the in Madhya Pradesh, which could be and three working presidents of the mounted to 14 in districts facing a across Bihar for
test in the legislative assembly on party president, all top leaders are vulnerable, but even where it is in state unit, have objected to Delhi Assam, where
severe deluge. In carrying out
Thursday to test the strength of the stationed here, but no one has the Opposition, mass defections party chief Sheila Dikshit’s decision flood waters have relief and rescue
chief minister H.D. Kumaraswamy- either the authority or accountabil- may now be on the cards. to appoint block observers, calling submerged 30 of Assam, the death operations.
led government. ity to take a decisive call as no one “One can prepare for guarding its it ‘unauthorized’, a war of words has the 33 districts, toll rose to 14 In Assam, road
“The trouble in Karna- broken out between Punjab including 4,157 connectivity
taka was brewing for a PARTY IN DISARRAY chief minister Captain villages affecting across various
while and all top leaders Amarinder Singh and sen- over four million people. districts has been disrupted,
were aware that the situa- THE crisis since THIS was followed CONGRESS also ELECTED govts with ior leader Navjot Singh However, according to the and 199 relief camps have
tion will heat up after the Gandhi’s resignation
began with 12 of its
by the resignations
of over a dozen
faced a major setback a wafer-thin majority, Sidhu over the latter’s resig-
in Goa when 10 out of such as in MP, have
latest forecast by the India been put up, sheltering
general election results. 19 Telangana MLAs Karnataka Congress its 15 MLAs defected also made the party nation as minister. Meteorological Department 116,000 people.
That there is a crisis in the merging with the TRS legislators to the ruling BJP leaders worry “Congress is in disarray (IMD), heavy rainfall is likely The Kaziranga National
central leadership and an and it is self-inflicted, being to decrease over Bihar, Assam Park has also been inundated
official chain of command a party dominated by one and other north-eastern by flood waters, forcing ani-
is missing has worsened the situa- wants to ruffle feathers. If it speaks flock when the party is in power, family. The top leadership has states from Tuesday onwards. mals to migrate to elevated
tion,” a senior Congress leader of anything, technically even the but we are facing a new kind of always been oblivious of the issue of Most rivers in the Brahma- areas near the boundary of the
from Karnataka said, requesting state unit is dissolved for now,” he trouble where the opposition party succession and now it has become putra and Baraka basin are park.
anonymity. added. gets split. In a state like Goa, we a sore point. The lack of party disci- severely flooded in Arunachal The flood situation is likely
In what was seen as an indicator While the Karnataka crisis was hardly got any time to respond. pline is even more stark,” said Sub- Pradesh, Assam and sub-Him- to continue for another 2-3
of the beginning of an organiza- still playing out, the Congress also Rahul Gandhi’s resignation and the rata Mukherjee, a New Delhi based alayan West Bengal. days, after which the water is
tional overhaul, nearly a month faced a major setback in Goa last lack of any signs of his replacement political analyst. “The BJP too The latest flood bulletin expected to slowly recede as
after the Congress was routed in week when 10 out of its 15 MLAs have given more reasons for fence- needs to be careful. With an abso- released Tuesday evening rainfall activity reduces, said
the Lok Sabha elections, the defected to the ruling Bharatiya sitters to leave for good,” a senior lute majority, people will hold them indicates that the tributaries the Central Water Commis-
party dissolved its Karnataka unit Janata Party (BJP). Congress Rajya Sabha member to scrutiny,” he added. of Brahmaputra have started sion in its latest bulletin.
Govt readies nationwide genome analysis plan in bid to reduce disease burden
Neetu Chandra Sharma prediction and prevention of and obesity. “At present, we are customized vitamin supple- ble for them.
neetu.c@livemint.com human disease, and for thera- not ready for genetic tests to ments based on an individual’s “Diverse purposes of genetic
NEW DELHI peutic intervention. The aim is predict weight loss. However, nutritional genetic profile. testing have already been iden-
to improve disease manage- there are some encouraging “Genetic screening, espe- tified, like screening for genetic

thumping majority with 88
seats. In the 2019 Lok Sabha
polls, the Congress managed to
win three seats, while the TRS
and BJP won 9 and four,
respectively, out of the 17 seats.
Subsequently, 12 Congress
MLAs defected to TRS in June.
Political analyst Palwai
Raghavendra Reddy said the
party will be revamped. “The
old leaders loyal to the Gandhi
family don’t add value, but are a
nuisance. Uttam Kumar was
Rahul’s choice, so before some-
body kicks him out, he will
leave honourably.”
“The forum has been formed
by state leaders who want to
stay relevant once central lead-
ership formally changes after a
new president takes charge,”
he added.
T
he government is explor-
ing recreational genetics,
a new area in the field of
genome testing, for reducing
India’s disease burden.
Private DNA testing labora-
tories offering recreational
genetics tests are already bur-
geoning in India. Now, the
department of biotechnology
(DBT) has initiated a pro-
gramme called human genetics
and genome analysis in which
the country’s genetic resource
is being utilized to develop
baseline data initially on vari-
ous ethnic groups for disease
susceptibility.
“We are focusing on improv-
ing human health by promot-
ing the development and dis-
semination of genomic meth-
odologies and tools for
ment through lifestyle modula-
tion, improvement in public
health, reduction of disease
burden, and lowering of treat-
ment cost with more genetic
laboratories and trained per-
sonnel in the area,” said Renu
Swarup, secretary at DBT.
Several private laboratories
are using recreational genetic
tests to offer a tailor-made lifes-
tyle, diet, weight loss, and dis-
ease prevention plan for each
individual for maintaining
optimal health and fitness.
While recreational genetic
tests are common in the US and
several European countries, in
India the genetic testing mar-
ket is still at a nascent stage. The
addressable market for recrea-
tional genetic tests is 500,000,
according to the Indian Coun-
The addressable market for recreational genetic tests is 500,000,
according to the Indian Council of Medical Research.
cil of Medical Research (ICMR).
This could actually be in mil-
lions, industry experts claim.
“As genetic testing can reveal
how one’s genes behave and
respond, personal genetic
information can provide data
that can help people make
more informed health-related
BLOOMBERG
decisions about their lifestyle,
goals, dietary habits, fitness,
nutrition and weight manage-
ment,” said Chandni Luthra,
director and co-founder,
FutureMed, a Delhi-based bio-
technology company.
Research is also on to estab-
lish the link between genetics
leads and, for the first time, we cially in the wellness space, is a diseases in newborns, children
are doing research new concept,” said and adults. The cost of genetic
on this issue in GENETIC Luthra . testing varies between ₹5,000
India,” said Anoop POOL Another diag- and ₹5 lakh. However, the more
Misra, chairman, nostics laboratory important aspect is the coun-
Fortis-C-DOC Cen- GENETIC resource chain in India, spe- selling session with the health-
tre for Diabetes, helps develop base-
line data on ethnic
cializing in genet- care provider that can help zero
Metabolic Diseases groups for disease ics, CORE Diagnos- in on the correct test out of the
and Endocrinology susceptibility tics, offers recrea- plethora of choices,” said Zoya
and National Dia- tional genetic tests Brar, MD and founder of CORE
betes, Obesity and THE aim is to such as geneCORE Diagnostics.
improve disease
Cholesterol Foun- management with Predict, where “An important part is to visit
dation. more genetic labs & sequencing and a genetic counsellor or a
Companies such trained personnel analysing the healthcare professional as they
as FutureMed are genome of an indi- are trained professionals who
offering genetic vidual, a geneticist play a key role in helping
tests for skin, hair, detox, phar- can predict the risk, genetic patients get the care that’s right
macogenomics, a branch of carrier status of 22 types of can- for them. They work with
genetics used to determine the cers, and the likelihood of pass- patients to help them under-
likely response of an individual ing it on to the next generation. stand genetic testing, guide
to therapeutic drugs and diag- Similarly, in liquiCORE test, them through the process and
nostic of diseases such as can- helps patients decide the drugs make informed choices based
cer. The company also offers and medical approaches suita- on their results,” said Brar.

senior regulatory official. In 2009, Petroleum and Natural Gas

m SHORT TAKES Regulatory Board (PNGRB) gave exclusive gas marketing rights,
Delhi court grants bail to Sebi provides new format for
initially for five years, to certain firms as a way to recover their Kejriwal in 2 defamation cases corporate governance compliance
costs along with exclusive rights to use the networks for 25 years.
ICJ to deliver verdict in Kulbhushan However, the regulator will open the marketing business to
HT
New Delhi: The Securities and
ABHIJIT BHATLEKAR/MINT

Jadhav case today
PTI
The Hague: The International
Court of Justice (ICJ) will
deliver on Wednesday its ver-
dict in a case on Kulbhushan
Jadhav, whose death sentence
by a Pakistani military court has
been questioned by India.
Jadhav, 49, was sentenced to
death on charges of “espionage
and terrorism” after a closed trial in April 2017. PTI
Centre to issue rules to end gas
distributors’ monopoly in 34 areas
New Delhi: The Centre will introduce rules in six months that
could lead to the phase-out of monopolies controlled by natural
gas distribution companies in 34 cities, including New Delhi and
Mumbai, allowing consumers to choose a new supplier, said a
competition, said Satpal Garg, a PNGRB board member who is Exchange Board of India (Sebi)
in charge of its commercial, monitoring responsibilities.REUTERS on Tuesday came out with a
new format for compliance
report on corporate governance
No changes planned in multi-brand to be submitted by listed firms
to exchanges.
FDI policy, says Piyush Goyal “In view of the revised time-
lines under the amended regu-
London: India’s foreign direct investment (FDI) norms in the lations, the circular shall come into force with effect from the
multi-brand retail sector are unlikely to change any time soon, quarter ended 30 September 2019,” said Sebi. PTI
commerce and industry minister Piyush Goyal said on Tuesday.
The 49% FDI threshold in multi-brand retail must be respected New Delhi: A Delhi court on Tuesday granted bail to chief
in letter and spirit by all foreign brands, he said. minister Arvind Kejriwal in two criminal defamation com- More Indians becoming obese,
Britain’s prime ministerial plaints filed by the Bharatiya Janata Party (BJP) and its
RAMESH PATHANIA/MINT
front runner Boris Johnson had leader Vijender Gupta. Besides Kejriwal, deputy chief min-
number of undernourished fall: UN
recently expressed his disap- ister Manish Sisodia was also granted bail by the court.
pointment at UK retailers like In the first case, the BJP alleged that Kejriwal and three United Nations: More Indians are becoming obese while the
Sainsbury’s and Waitrose not others were blaming the party for deletion of names from number of undernourished people in the country has declined,
being able to set up base in electoral rolls in Delhi. The second case is relating to BJP according to a report by the UN that said globally more than 820
India, and had said he would leader Gupta’s accusation that Kejriwal and Sisodia were million people are suffering from hunger.
“like to see India opening up to maligning his image. PTI In India, the number of undernourished people fell from 253.9
more of our great brands”. PTI million in 2004-06 to 194.4 million in 2016-18. PTI
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 13 NO. 170 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR)

SNAPDEAL NARROWS FY19 SUZLON DEFAULTS ON BOND

WEDNESDAY, JULY 17, 2019 LOSS TO ₹186 CRORE uP6 PAYMENTS WORTH $172 MN uP6
LIVEMINT.COM

DON’T
MISS
Bombay HC quashes permits for TWITTERVERSE

₹14,000-cr coastal road project

Arvind Kejriwal
@ArvindKejriwal
In a setback to BJP-Sena govt, HC quashes environment clearances granted by state, central governments Congratulations Delhi-
ites. Overcoming all
Floods ravage ANIRUDDHA CHOWDHURY/MINT hurdles your govt finally
Bihar, Assam Abhiram Ghadyalpatil response to a bunch of public inter- succeeds in opening the
Rains have worsened abhiram.g@livemint.com est litigations filed by two fisher- RTR flyover from today.
flooding, displacing MUMBAI men’s cooperatives, called Worli No more traffic jams on
millions in Bihar, Koliwada Nakhwa Matsyavyavasay your way to the airport.

Assam and other north
-eastern states. P17
Cong faces crises
across states
Congress is facing
defections and turf
wars across state units,
besides central leader-
ship crisis. P17
Taxing times for
the super rich
The budget proposed
an increase in sur-
charge levied on I-T
outgo of those earning
above ₹2 crore. P16
Andhra Pradesh to
review all PPAs
Andhra Pradesh will
review all PPAs signed
over the past five
years, despite the cen-
tre’s warning. P16
I
n a major setback for the Bhar-
atiya Janata Party-Shiv Sena
NHRC government’s Mumbai make-
registered 79
cases of
over plans, the Bombay high
discriminatio court (HC) on Tuesday stopped
n against work on the ₹14,000-crore-plus
minorities Coastal Road project, quashing var-
and 672
against SCs
ious environmental clearances
in 2018-19 granted by the state and central
governments.
bit.ly/2LWXzOm
In its detailed judgement, the
court asked the Municipal Corpo-
ration of Greater Mumbai (MCGM)
to stop work till fresh environment
clearances and notifications are
obtained after a proper Environ-
mental Impact Assessment (EIA).
Work on the long-pending project
had started in October, after the
Union ministry of environment
and forests (MoEF) issued the final
clearance in May 2017.
The expressway, when com-
pleted, is projected to be used by
nearly 130,000 vehicles every day
and reduce the 120-minute ride
between South Mumbai and west-
ern suburbs to 40 minutes. The
Shiv Sena-ruled MCGM is the
implementing authority for the
29.2-km-long eight-lane highway.
A bench of Chief Justice Pradeep
Nandrajog and Justice N.M. Jam-
dar ruled that there was a lack of
“proper scientific study” and this
was overlooked by the MCZMA
(Maharashtra Coastal Zone Man-
Sahakari Society Ltd and Worli
Machchimar Sarvoday Sahakari
Society, non-governmental organi-
zations (NGOs) Vanashakti, Con-
servation Action Trust, Society for
Improvement, Greenery and
Nature, Bombay Environmental
Action Group, and a number of
architects and environmental
activists, against MCGM, the Mehbooba Mufti
department of fisheries, govern- @MehboobaMufti
ment of Maharashtra, MoEF and Good to see Adi Godrej
MCZMA, among other govern- speak up at a time when
ment authorities related to the most corporate leaders
project. All petitions were filed have lost their voice.
against different components of Mind numbingly stupid
the project before construction to expect India to beco-
began last year. me a $5 tn economy.
Work on the long-pending project had started in October, after MoEF issued the final clearance in May 2017. In April, the Bombay HC had
stayed work on the project, but
agement Authority), EIA and ther permission under Wildlife makeover plan—as one of the pro- MCGM challenged the decision in
MoEF. Protection Act 1972 would also be jects it had cleared after it was “held the Supreme Court, which allowed
“We quash the approval granted obtained by MCZMA,” ruled the up” for want of clearances during the municipal body to continue
by MCZMA on 4 January 2017, the HC. the previous Congress-led regime with existing work, but restrained it
approval granted in Maharashtra from starting any new work. The
by EAC (Expert ROAD TO NOWHERE and the Centre. apex court also asked the Bombay
Appraisal Com- The court order HC to hear petitions pertaining to
mittee of the THE 29.2-km-long 8- THE expressway, HC stopped work comes barely the environmental and coastal Sitaram Yechury
M o E F ) o n 1 7 lane expressway was when completed, is after hearing pleas
to connect Kandivali projected to be used related to coastal
three months zone clearances issued to the @sitaramyechury
March 2017 and and Marine Lines in by nearly 130,000 zone clearances ahead of the project. The hearing in HC started
the final approval South Mumbai vehicles every day issued to the project Maharashtra last month. Dayanand Stalin, Favouring cronies, mak-
granted by MoEF assembly election, director of Vanashakti, told Mint ing land and other pub-
on 11 May 2017. We where Mumbai’s that the NGO welcomed the judge- lic goods available for a
further declare that MCGM cannot The Shiv Sena-BJP combine has infrastructure overhaul would be ment, adding the state government song to select ‘friends’
proceed with the work without publicized the coastal express- one of the themes the BJP-Shiv and MCGM must obey it in the as the rest of India loses
obtaining an environmental clear- way—one of the signature infra- Sena alliance would seek to exploit. interests of “environment, green- livelihoods and lives.
ance under EIA notification. Fur- structure projects of the Mumbai The judgement came in ery, wildlife, and biodiversity”.

Modi warns BJP MPs Karnataka govt using IMA Jewels case to coerce me, Baig tells HC
yet again for skipping Sharan Poovanna &
Prathma Sharma
The incident, however, took lodged in Mumbai and are
a political turn as chief minis- refusing to come back for the
tion to decide on the resigna-
tion of the MLAs).
ter Kumaraswamy accused the discussions on the trust vote. The BJP has denied any role
House proceedings BENGALURU/NEW DELHI Bharatiya Janata Party (BJP) of At least 15 legislators of the
engineering Baig’s exit to help Congress and the JD(S) have
in the episode and rushed to
defend Baig. In a series of

T
he H.D. Kumarawamy- bring down the government. approached the Supreme tweets, the BJP insinuated that
RAMESH PATHANIA/MINT. led Karnataka govern- “Today SIT probing the Court alleging that Karnataka Kumaraswamy knew the main
Gyan Varma ment was using the IMA #IMA case detained @rro- Assembly Speaker K.R. Ram- accused in the IMA Jewels
gyan.v@livemint.com Jewels case to coerce R. shanbaig for questioning at the esh Kumar was not accepting case, Mohammed Mansoor
NEW DELHI Roshan Baig to support the BIAL airport resignations and Khan, but has yet to come
ruling coalition, the Congress while he was try- Shivajinagar Cong that the coalition clean. It said that Kumaras-

P
rime Minister Narendra legislator from Shivajinagar, ing (to) leave legislator says the was using dis- wamy “should immediately
Modi on Tuesday issued a Bengaluru, told the Karnataka along w i t h Kumarawamy-led qualification as a stop using state machinery to
stern warning to Bharat- High Court on Tuesday. @BSYBJP’s PA govt is using case threat to get the blackmail anyone who
iya Janata Party (BJP) Members Baig’s decision to move Santosh on a
R. Roshan Baig (centre) is among the 16 legislators from the
to coerce him into rebels to support opposes his government”.
of Parliament (MPs) yet again court against the Congress- coalition who have submitted their resignations as MLAs. HT chartered flight to the government. Since 1 July, 16 legislators
for skipping proceedings of the Janata Dal (Secular), or JD(S), Mumbai. I was supporting the They urged the have resigned and two others
two Houses. coalition indicates that he is remain with the party by with- port on Monday night for an told that on see- ruling coalition apex court to have withdrawn support to the
Modi talked about the unlikely to support the gov- drawing his resignation and undisclosed location, before ing the SIT, San- restrain the coalition government.
repeated absence of MPs dur- ernment during the trust vote supporting the government on detaining him. thosh ran away speaker from However, both the Con-
ing a parliamentary party meet- on Thursday. the vote of confidence sched- Baig and Congress minister while the team apprehended proceeding with the applica- gress and the JD(S) are confi-
ing of the BJP. “As usual, the Baig is among 16 legislators uled on 18.7.2019,” the petition B.Z. Zameer Ahmed Khan are Mr. Baig,” Kumaraswamy tions for disqualification. dent of winning the trust vote.
Prime Minister has said that PM Narendra Modi. from the coalition to have sub- alleged. among scores of people being tweeted. The top court, which heard All three parties—the Con-
there are no exceptions from mitted resignations as MLAs, The special investigation questioned by SIT for their Santosh, who is closely asso- arguments from all sides, is gress, JD(S), and the BJP—
being present in Parliament of nominating candidates for pushing the one-year-old gov- team (SIT) probing the multi- alleged involvement in the ciated with state BJP president expected to pass an order on have lodged its legislators in
while the session is on. It is elections, BJP members said. ernment closer to collapse. crore IMA Jewels scandal scam, in which thousands of B.S. Yeddyurappa, was seen Wednesday, on whether it high-end hotels and resorts in
compulsory for everyone to be “The party leadership is very “The police are acting ille- stopped Baig from leaving in a small investors were allegedly assisting rebels book and should issue a direction to the and around Bengaluru to
present,” Pralhad Joshi, parlia- clear that an MP’s performance gally to aid the government to private chartered aircraft from duped with the promise of board special flights to Mum- speaker to take a time-bound shield them from any poach-
mentary affairs minister, said in the House will be a major cri- coerce the petitioner (Baig) to Bengaluru International Air- over 30% returns per annum. bai. At least 14 legislators are decision (a time-bound direc- ing attempts by rivals.
after the meeting. terion at the time of giving tick-
Senior leaders present in the ets during polls. An MP who has
meeting also pointed out that not performed the duty in the
the PM had asked Union minis- House would have to face the
ters to carry out their Parlia- ire of the senior leadership,”
ment roster duty when they are said a senior BJP leader who
meant to be present in one of was present in the meeting.
the Houses as a government Modi also asked MPs to work
Shut since Balakot strike, Pakistan airspace reopens for civilian ops
representative. for the develop- ANIRUDDHA CHOWDHURY/MINT
Modi has asked to PM Modi has ment of their Gireesh Chandra Prasad & Force at a terror camp in Bala- Dubai, the US and Canada. lakh and ₹5 lakh per flight
be informed if asked to be respective con- Rhik Kundu kot on 26 February. In April, “With the ban now lifted, air- respectively, news agency PTI
ministers or MPs informed if stituencies and Pakistan opened one of its 11 fares of international flights reported on Tuesday.
skip their duty, ministers or MPs take up health NEW DELHI/MUMBAI air routes for west-bound from cities like Delhi and The dropping of the restric-
said these leaders. issues. The Prime flights from India, which Air Mumbai on some routes have tion will allow Pakistan, which
skip their duty,

P
This is not the Minister told the akistan re-opened its air- India started using. dipped by 35-40%. The one- this month agreed to a $6 bil-
first time when say senior party MPs that they space to civilian traffic After the restrictions were way average fare of a Mumbai- lion bailout with the Interna-
Modi has cau- leaders should take up a after more than four lifted, SpiceJet operated a Amsterdam flight tional Monetary
tioned BJP MPs to social cause as a months on Tuesday, giving direct Jaipur-Dubai flight on which was 1.5 The closure of the Fund, to collect
attend Parliament “mission”, apart relief to Indian carriers and Tuesday forenoon overflying hours longer last airspace was a overflight fees
proceedings. Modi had, during from carrying out their duties international passengers hit by Pakistan, one person familiar week due to the blow to Indian from airlines,
a meeting of the parliamentary as MP, Joshi added. lengthy flying times and with the development said, ban, h a s carriers operating Reuters reported.
party earlier in this session, Modi spoke about diseases mounting fares. requesting anonymity. decreased from “IndiGo flights
issued a similar warning, asking such as leprosy and TB. Modi
internationally as
Pakistan Civil Aviation IndiGo is also preparing for After the restrictions were lifted, SpiceJet’s Jaipur-Dubai flight ₹40,515 to flying via Pakistan
MPs to be present in the House also told the MPs that India had Authority, in a Notice to Air- flights over Pakistan. flew over Pakistani airspace on Tuesday. ₹26,700 this they were forced will operate as
and take part in the discussions. fixed a deadline of 2025 for men (Notam), said the coun- The closure of the airspace week,” said Baj- to take detours normal after all
The party leadership had eradicating TB against the try’s airspace was open to all by Islamabad dealt a blow to eep Singh Puri told Parliament Aloke Bajpai, chief execu- pai. regulatory clear-
decided that the performance global deadline of 2030, and types of civil traffic on pub- Indian carriers operating earlier this month. The tive and co-founder of online Air India’s ances by the con-
of MPs in the Lok Sabha and asked MPs to work towards lished routes. The airspace was internationally, as they were national carrier alone suffered travel portal Ixigo, said the air- operation costs for one-way cerned authorities,” IndiGo
Rajya Sabha would be taken this. blocked after a non-military forced to take lengthy detours, a ₹491 crore loss due to the air- space closure affected airlines US- and Europe-bound flights said in a statement.
into consideration at the time PTI contributed to this story . airstrike by the Indian Air civil aviation minister Hard- space restrictions till 2 July. operating flights to and from are likely to be down by Rs 20 gireesh.p@livemint.com