OPINION, P8 MONEY & MARKETS, P10 RATIONALEXPECTATIONS PSUs lost a fourth in market cap share over last three years ECONOMY, P2 EDITORIAL BAD LOANS DOUBTS CLEARED If govt wants to curb use of tobacco, ironic that PHFI targeted for anti-tobacco ‘lobbying’ Mundra suggests changes in ways to fix NPA crisis Finance ministry approves 8.65% interest rate on EPF MUMBAI, FRIDAY, APRIL 21, 2017 VOLUME XXXXXV NO. 30, 22 PAGES, `6.00 PUBLISHED FROM: AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM SENSEX: 29,422.39 ▲ 85.82 NIFTY: 9,136.40 ▲ 32.9 NIKKEI 225: 18,430.49 ▼ 1.71 HANG SENG: 24,056.98 ▲ 231.1 `/$: 64.56 ▲ 0.02 `/€: 69.38 ▼ 0.13 BRENT: $53.15 ▲ $0.22 GOLD: `29,249 ▼ `73 SIX YEARS AFTER the lease of Tata Group’s Indian Hotels Company Limited (IHCL) to manage the iconic Taj Mahal Hotel on Mansingh Road in Lutyen’s Delhi expired, the Supreme Court on Thursday ordered that the rights of managing the hotel be e-auctioned by the New Delhi Municipal Council (NDMC) without any right of first refusal Continued on Page 2 END OF A LONG SAGA IN THE NEWS Goldman to sell $123-m Max stake GOLDMAN SACHS will sell shares worth up to $123 million in India’s Max Financial Services on Friday, according to a deal term sheet seen by Reuters. Goldman will sell up to 3.74% stake in Max Financial in a block trade, the term sheet revealed. 1978 2012 Oct 2016 NDMC grants a 33-year licence to IHCL for managing Taj Mansingh hotel NDMC decides to auction the property; lease extended for a year HC upholds NDMC’s stand; says IHCL has no right of renewal of licence period 2011 2013 Nov 2016 Mar 2017 Licence expires; NDMC extends it till 2012 IHCL moves the Delhi HC against auction SC asks NDMC to review its decision NDMC decides to go ahead with auction Sept 5 Jio's Welcome Offer Dec 23 Bharti Airtel moves TDSAT against Trai on these offers Apr 6 Rolls back Summer Offer Mar 16 Interim order pronounced Feb 21 Jio says it will start charging from April 1 Mar 31 Jio comes up with Summer Surprise Offer Apr 11 Announces Dhan Dhana Dhan Offer Apr 13 Bharti contest Summer Offer in TDSAT July 4 Dhan Dhana Dhan Offer closes JULY Dec 1 Jio's Happy New Year Offer May 3 APRIL (RoFR) to the Tata Group. A bench comprising justices P C Ghose and R F Nariman ordered for e-auction while allowing the plea of NDMC that the Tata Group firm cannot have the right to refusal in auctioning of the hotel. The bench, however, asked the civic body to grant six months’“breathing time” to the companyinvacating the hotel in case they lose out in the e-auction. It also said the “blemish- Next hearing: Hearings on: Jan 6, Feb 1, Feb 6, Feb 20, Feb 28, Apr 10, Apr 20 MARCH FE BUREAU New Delhi, April 20 Will TDSAT rule after RJio offer expires? FEBRUARY 2017 Supreme Court agrees to hotel lease auction; Taj gets to stay for six months after e-auction, only hope is to top others free” record of IHCL may be taken into account by NDMC during the auction. After the SC order, the Tata Group which was since October 31, 2011, managing the hotel through several extensions and was opposed to any auction said in a statement that it respects the order and would participate in the auction.“We respect the decision of the honourable Supreme Court and intend to participate in the e-auction when it is held.We stay committed to our colleagues and guests, whose loyalty and trust remain our biggest asset,” an IHCL spokesperson said. Research by RISHI RANJAN KALA DECEMBER Taj Mansingh to be auctioned, finally Dial-a-delay SEPTEMBER 2016 NOTICE TO VACATE Harley pays 10% duty, not 100% as alleged US president Trump had indicated Indian import duties of 100% must be cut BANIKINKAR PATTANAYAK New Delhi, April 20 US PRESIDENT DONALD TRUMP’s statement that HarleyDavidson is subject to a massive 100%taxforexportingmotorcycles to ‘one country’ seemed targeted at India, but the fact is the iconic American bike maker pays as little as 10% duty here on much of its supplies. As a commerce ministry note suggests, Harley — which has a plantinthiscountrysince2011— imports a lot of its components like engines, gear box, transmission mechanism etc in a pre-assembled form that are liable for just a 10% duty. So, the argument that India has been imposing a 100% duty onHarleyis“incorrect”,itstresses. Harleysold 4,080 units in India in 2014 and 4,445 units in 2015, much higher than its imports of 1,445 and 2,742 units in 2014 and 2015, respectively. This means a large number of Harley bikes are manufactured in India at its plant in Haryana where imposing a 100% tax “doesn’t come into picture”, according to the note. In fact, Harley has an over 50% share of the Indian market in the bike segments ranging from 800cc to over1,600cc. FE was the first to report on March 10 that India was providingitsembassyinWashingtonDC with these facts on the Harley issue to clear any‘misconceptions' there,if required. Continued on Page 2 QuickPicks Wipro to let go 350-400 employees INDIA’S THIRD largest IT services exporter Wipro has decided to let go 350-400 of its staff as part of the appraisal process, which the company termed a part of the plan to align its workforce with business objectives, reports fe Bureau in Bengaluru. At the end of the third quarter of FY17, the IT major had a total headcount of 179,129. It is not clear which divisions of the company will be affected the most.■ P6 SC junks SPL tariff claim THE SUPREME Court on Thursday refused Reliance Power-promoted Sasan Power’s (SPL) claim for higher tariff for its 4,000-MW project located in Singrauli district of Madhya Pradesh, saying that the issue was covered by an earlier judgment, reports fe Bureau in New Delhi. SPL had claimed that the ‘unprecedented, unforeseen and uncontrollable’ steep depreciation of the rupee was a force majeure event. ■ P2
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.