OPINION, P8 M&M, P11 PRICED AT `685-700 PER SHARE DoCoMo shock for Abe shows how little has changed in India Odd that Rahul Gandhi never cited successful dynasts such as Nehru and Indira at Berkeley GROWTH OF ROBOTICS IPO to value Basu-led SBI Life Insurance at `70,000 crore EDITORIAL INTERNATIONAL, P16 Former Citi CEO Pandit says 30% of bank jobs at risk PUNE, THURSDAY, SEPTEMBER 14, 2017 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME VIII NO. 189, 24 PAGES, `4.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 32,186.41 ▲ 27.75 NIFTY: 10,079.30 ▼ 13.75 NIKKEI 225: 19,865.82 ▲ 89.20 HANG SENG: 27,894.08 ▼ 78.16 `/$: 63.99 ▲ 0.04 `/€: 76.69 ▼ 0.25 BRENT: $54.64 ▲ $0.37 GOLD: `30,001.00 ▲ `125.00 INSOLVENCY PETITION Ericsson moves NCLT on RCom’s dues about 60%. The Swedish multinational had earlier objected to the merger,seekingacreditors’meeting.However,the Mumbai bench of the NCLT had admitted the merger petition in August and will hear it on October 11.Senior bankers said some lenders were yet to approve the merger.RCom said in a regulatory filing on Wednesday that it “intends to challenge the said petitions”. Apart from Ericsson, others who objected to RCom’s merger plans included Chennai Network Infrastructure — a GTL subsidiary— and Bharti Infratel.The department of telecommunications had observed the merger needed to be first cleared by the Supreme Court; the apex court is hearing a case against Aircel’s Malaysian promoters in an alleged corruption case. While China Development Bank, Standard Chartered Bank and HSBC Daisy Investments had initiallyobjected the merger petitions,theylaterconsented to the merger proposal being admitted subject to certain conditions. RCom owes the Chinese lender close to `9,000 crore.The telco’s gross debt stood at `45,000 crore in FY17,of which the company owes domestic lenders `25,000 crore. RCom plans to repay `11,000 crore of its `45,000crore debt from the proceeds of the sale of a majority stake in its tower business to Brookfield Infrastructure. Another `14,000 crore debt will move from RCom’s books to the joint venture with Aircel. Could scupper Aircel deal; suit also names Reliance Infratel, Reliance Telecom; together they owe vendor `1,156 crore IN THE NEWS Lupin’s arm recalls 12,888 bottles of ulcer drug in US DRUG FIRM Lupin’s US arm, Lupin Pharmaceuticals, is recalling 12,888 bottles of Famotidine for oral suspension used in treatment of ulcers from the American market, reports PTI. The reason for the recall is current good manufacturing practice deviations, the United States Food and Drug Administration said in its latest Enforcement Report. Lupin Pharmaceuticals is recalling bottles manufactured sat its Goa facility, it added. CVC refers Cadbury tax case to CBI THE CBI has registered a case against confectionery giant Mondelez, the maker of Cadbury chocolates, to probe allegations of bribing public servants to evade `580 crore in excise duty, a top official said on Wednesday, reports PTI. The probe has been initiated on the recommendation of the Central Vigilance Commission that did the groundwork, said chief of the anti-corruption watchdog K V Chowdary. FE BUREAU Mumbai, September 13 ERICSSON INDIA ON Wednesday filed insolvency petitions against Reliance Communications (RCom), Reliance Infratel and Reliance Telecom, all promoted by Anil Ambani. Ericsson is an operational creditor to RCom, which together with its subsidiaries owes the telecom equipmentvendor`1,156 crore. Should the insolvency petitions be admitted by the National Company Law Tribunal (NCLT), they could come in the way of RCom’s proposed merger with Aircel, derailing the former’s plans to pare debt by RCom share price on BSE (`) 45 38.90 40 35 30 21.80 25 20 15 10 April 3, 2017 Sept 13, 2017 RCom financials 2017 (` crore) 22,149 Net revenue 3,561 Interest cost Source: Capitaline Net loss -1,403 Continued on Page 2 ILLUSTRATION: SHYAM HIGH DEMAND Special Feature Apple iPhone X is all about design and display Meet iPhone X, the new high-end handset from Apple. With a new design, display technology, Face ID and more, the flagship smartphone marks the tenth anniversary of the iPhone ■ Gadgets, P15 Spot power prices see sharp spike IEX prices Tariff (`/Kwh) 10 Sep 7 8 Sep 11 Sep 8 Sep 9 Sep 12 Sep 10 China Lodging Group inks MoU with OYO, invests $10 m WITHIN A week of raising $250 million (`1,600 crore) from Japanese Internet and telecom conglomerate SoftBank Group and Hero Enterprise, online hotel aggregator OYO Rooms on Wednesday said it has raised another $10 million (`63 crore) from China Lodging Group, reports fe Bureau in New Delhi. Both OYO and China Lodging Group have signed a memorandum of understanding allowing the firms to combine technology know-how and operations knowledge. Both will work to enable a co-learning opportunity in the fields of technology and hospitality. PAGE 6 RBI not comfortable with crypto currencies like bitcoins: Sen THE RESERVE Bank of India is not comfortable with “non-fiat” cryptocurrencies such as bitcoin, its executive director Sudarshan Sen said on Wednesday addressing the India Fintech Day conference in Mumbai, reports PTI. Elaborating on what is a non-fiat cryptocurrency, Sen said, “Bitcoins for example. That’s a private cryptocurrency.” The fiat cryptocurrency is a digital currency which will be issued by RBI in place of the physical one at present, he said, adding that the central bank is studying this aspect at present. PAGE 10 Bharti, SK Telecom tie up for 5G, network augmentation BHARTI AIRTEL on Wednesday announced a strategic partnership with South Korea’s SK Telecom to work on further optimising its networkbased customer and device experience as well as to collaborate on developing 5G technology architecture in India, reports fe Bureau in New Delhi. Under the alliance, Bharti will leverage SK Telecom’s expertise in network technology to optimise its networks in a bid to improve customer experience, use machine learning and big data to measure network quality and experience at customer device level. PAGE 5S FIRST-LEVEL TRIGGER IN AUGUST Concerns of major drought allayed Just 58 districts under watch list, no chances of ‘severe drought’ anywhere, says agriculture secretary Pattanayak MONSOON SCENARIO DEFICIENT NORMAL EXCESS Seven of 36 meteorological sub-divisions, constituting 22% of the country 23 subdivisions or 58% of the country Six subdivisions accounting for 20% of the total area RAIN-DEFICIENT REGIONS Haryana, East/West UP, West/East Madhya Pradesh, Vidarbha, coastal Karnataka ~4 million hectares Flood-hit, of the total kharif sowing area of 104 million hectares SANDIP DAS New Delhi, September 13 AS MANY AS 225 districts in the country — mostly in central and southern India — were officially at the first level of drought trigger by August end, threatening to dent the prospect of a robust kharif output, but rainfall in the last couple of weeks seem to have salvaged the situation. As of now, only 58 of the country’s over 550 districts with sizeable farmland are witnessing “moderate drought-like conditions”, Area under Oilseeds Pulses Grains different 10% 4% 1% crops a senior official said, adding that the “possibility of severe drought emerging in any district is virtually nil”. Union agriculture secretary Shobhana K Pattanayak told FE that the country’s foodgrain production is likely to match last year’s figure of a record 276 million tonnes.The southwest monsoon is about to start withdrawing in a week. Cotton Sugarcane 19% 9% Pattanayak’s comment, ahead of the first advance estimate of 2017-18 kharif production to be released next week, was in the context of the Mahalanobis National Crop Forecast Centre (NCFC) under the ministry of agriculture saying a few days ago that the districts with the first level of drought trigger rose sharply to 225 by end-August from 104 Oil PSUs feel the heat 6 FE BUREAU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours ANUPAM CHATTERJEE New Delhi, September 13 SPOT PRICES OF electricity at the Indian Energy Exchange (IEX) have skyrocketed due to a surge in demand from stateowned discoms. For the peakdemand 8 pm slot,for instance, deals were clinched at a stratospheric `9.38 per unit on Tuesday, up 200% from the August average of `3.13 a unit. Slippages in hydro power generation owing to reduced water levels in reservoirs in many parts of the country, especially in the south, is believed to be the main reason for the higher demand for spot power. Hydro power generation fell from 541 million units (mu) on August 11 to 523 mu on September 11. Telangana discoms purchased 40 mu of power on the IEX platform for Wednesday, against 10-15 mu it used to buy from exchanges until recently. IOCL 490 483 555 450 REUTERS Mumbai, September 13 intra-day on BSE (`) September 13 457.35 480 440 intra-day on BSE (`) September 13 537 440 500.35 510 460 450 540 525 470 Continued on Page 2 Previous close 481.75 Open 495 Close WAITING LIST COMPANY PROJECT Shreeram Urban Infrastructure Palaise Royal Indiabulls Blu Peninsula Land Celestia Spaces HDIL Premier Exotica Ekta Developers Ekta Parksville Kumar Builders Kul Court RNA Universal RNA Grande Kalpataru Developers Kalpataru Radiance Rohan Developers ● SEVEN-YEAR HIGH BPCL intra-day on BSE (`) September 13 480 438.95 416.15 430 420 Previous close 533.60 Open 410 Close 400 Previous close 434.75 Open Close In Maharashtra real estate market, deadlines are dead BUYERS OF MORE than 50,000 apartments in Maharashtra will now have to wait even longer for theirhomeswith errant builders having managed to get away with delayed timelines.The Real Estate Regulatory Authority (RERA) is allowing even those builders who have missed their original deadline to revise completion schedules.Gautam Chatterjee,chief,Maharashtra,RERA, claims he is constrained by the law and cannot take any action for delays before May 1,2017. Continued on Page 2 HPCL Successive hurricanes in the US have hit refining capacity and resulted in petroleum prices rising. With the government clear it is not going to reduce excise duties, markets fear oil marketing companies may be asked to asked to bear the burden instead of raising prices. SHIFTING GOALPOSTS PRIYANKA GHOSH Mumbai, September 13 in the previous month. Under the drought assessment manual launched last year, the procedure involves three stages: In the first stage, the rainfall deviation and the dry spells are taken into consideration for issuing “first-trigger” while in the second stage, crop sowing, soil moisture and hydrology are checked to assess the severity of drought situation.If a drought situation is established,the state government concerned is asked to do a field verification. The first-stage trigger, clarified an NCFC official on condition of anonymity, more often than not doesn’t lead to declaration of an area as “drought-affected”. Of the country’s 36 meteorological subdivisions, only seven fall under rain-deficit zone classification right now; in terms of area,just 22% is rain-deficient. Corporate debt weighs down the economy Will price freedom be restricted? 2 0 PM Narendra Modi and his Japanese counterpart Shinzo Abe during a roadshow in Ahmedabad on Wednesday. Abe is on a two-day visit to India and will launch India’s first bullet train project on Thursday. Report on Page 20 PTI Sep 13 4 QuickPicks Bullet-in board Source : Maha RERA Lifescapes Aashiana “Thatisnotmydomain,”Chatterjee had said in an interview to FE inAugust.At a public forum on September 6, he conceded that the majority of complaints coming in related to extensions for projectsalreadydelayed.However, he declined to comment on any course of action,saying theywere a matterforadjudication. “Effective from May 1, developers will have to pay an interest for project delays,” Chatterjee said. Legal experts opine it is not possible to charge developers for earlierdelays.“RERAcanonlyrule onthereviseddateofcompletion and not the original agreement betweenthedeveloperandhome buyer,” Sudip Mullick, partner at Khaitan & Co,clarified. The new deadline for Shreeram Urban Infrastructure’s ambitious luxury project Palaise Royal is now 2021; that’s 13 years after the launch in 2008, when ideallyowners should have moved in by 2012 or 2013. Buyers of apartments in Indiabulls’ Blu project, who had bought them in 2011, will need towait till 2020 even though the builder had committed to completing it in 2018. Continued on Page 2 INDIA’S CASH CRUNCH and confusion over the introduction of a national sales tax were initially blamed for pulling economic growth down to its weakest pace in more than three years.But that is masking a more debilitating factor affecting the economy — corporate debt. Thomson Reuters data,based on the latest annual earnings reports,showIndia’s corporate debt rosetoaseven-yearhighattheend ofMarch.Morethanafifthoflarge companiesdidnotearnenoughto payinterestontheirloansandthe paceofnewloansfelltothelowest in more than six decades. Continued on Page 2 FALLING NUMBERS ■ More than a fifth of large firms did not earn enough to pay interest on loans ■ The pace of new loans fell to the lowest in more than six decades ■ The govt reported on Aug 31 that annual GDP growth in the quarter ended June dropped to 5.7%, weakest since early 2014
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