OPINION, P2 MIND & GAMES IDEA EXCHANGE ACROSS THE AISLE , P CHIDAMBARAM Thankfully, the analogue world is still here. And real books, records and brick and mortar stores will take us back with open arms Page 10 ‘We are falling very short on aspirations, this will (boil over). The upper caste protests reflect that’ Page 4 She put the poor on the agenda OUR LOVE AFFAIR WITH DIGITAL IS OVER Vol XVII No 5 Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM Dr Rajiv Kumar WORDS WORTH NOW BOARDING NEW DELHI SUNDAY, NOVEMBER 26, 2017 14 Pages, `8 (Patna `11, Raipur `10) SPOTLIGHT SILENT VOLUMES FINANCIAL EXPRESS ON SUNDAY READ TO LEAD Richard Branson recounts his life from being a records impresario to a global entrepreneur Page 5 PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE GREEN VEHICLES EV race: 2-wheeler makers watch from the sidelines ● As car companies pledge interest, cost worries shroud 2-wheeler camp DEEPAK KUMAR Mumbai, November 25 With a crunch of funds, resources and staff, a majority of public libraries in the country are in a state of despair. What’s needed is an urgent action plan to make these knowledge hubs relevant Page 7 LEISURE ELECTRIC VEHICLES (EV) are being dubbed the future of mobility,with the government having put a target of 2030 bywhen it wants the country to completely shift to selling EVs.Many car makers have eagerly joined the race, the latest being the number one passenger car seller in India, Maruti Suzuki. However, most two-wheeler manufacturers in the countryare sceptical of the hype. Eric Vas, president, motorcycle business, Bajaj Auto, says the primary issue with electric vehicles is theirexpense."The biggest problem is the economics,which is why they rely too heavily on subsidies. Even today we have electric cars, but they don't sell that well," he argues. He attributes the problem to the cost of batteries used in electric vehicles.“The fundamental issue is the cost of batteries. And the problem may not be very easy to solve,”he says. As per a new report by Niti Aayog and Rocky Mountain In- ODD & EVEN NOT ON TRACK The government aims a complete shift to selling EVs by 2030 Battery accounts for approximately 1/3 rd of the total purchase price of an electric vehicle Increased production of battery over the past six years has led to reduction of cost by 70% In the previous fiscal, a mere 23,000 units of electric two-wheelers were sold stitute,"India's Energy Storage Mission: A Make-in-India Opportunity for Globally Competitive BatteryManufacturing",the battery accounts for approximately one-third of the total purchase price of electric vehicles today. This is after a 70% drop in price of battery packs over the last six years due to in- ROHNIT PHORE INDIAN ACCENT 2.0 QuickPicks Page 8 THE GOVERNMENT has announced the post-GST rates for claiming rebate of state taxes under the scheme for Remission of State Levies (RoSL) on exports of readymade garments and made-ups, in a bid to support the outward shipments. The government has also doubled the rates for incentives under an export promotion scheme — MEIS — to 4% for these items. PAGE 3 Why buy when you can rent Experimental tastes are fuelling the shared economy market, with everything from white goods to furniture to fashion on offer SHINMIN BALI Mumbai, November 25 WITH THE VALUE placed on ownership pride changing for newer generations and affordability being redefined, renting instead of buying is emerging as a viable option for customers. The reasons forrenting products vary,but the growth potential for companies in this area is huge. A shared economy allows consumers to be temporary users of products orservices that may otherwise be out of budget, not conform to their conventional buying nature or the consumer prefers to not commit to that particular product/service for a long period of time. The Current and Future State of Sharing Economy by Brookings India estimates that the sharing economywill reach $335 billion by 2025. Across categories, start-ups are looking to find a model that works the best. Ajith Mohan Karimpana, founder and CEO of furniture rental company Furlenco, believes that it is a myth ON TUESDAY ‘WHEN RENTING TRUMPS BUYING’ that an asset-light model is a good one and being asset-heavy is bad.Flyrobe,an online fashion rental, operates on a hybrid model. It primarily deals in payper-use of its own inventory and has recently rolled off the Lease My Outfit service allowing con- Jeff Bezos’ net worth crosses $100 billion Amazon founder Jeff Bezos Govt announces measures to boost garment exports Why the country’s best known restaurant shifted location and how it’s a good move creased scale of production. Vas adds that the company has strong in-house capabilities and has beenworking on electric vehicle technology, but Bajaj Auto is not looking to launch an electric two-wheeler anytime soon.“We have an electric vehicle programme, but that does not mean we will launch an EV,” sumers to list items from their ownwardrobe on thewebsite for rent. As much as 40-50% of rental proceeds are then shared with sellers. Bengaluru-based GrabonRent offers six categories and conforms to an asset-light model. It focuses on furniture and home appliances, with the former accounting for 35% of revenue and the latter bringing in 30-32%. Continued on Page 11 BLOOMBERG November 25 JEFF BEZOS IS the world’s newest $100-billion mogul.The Amazon.com Inc founder’s fortune is up $2.4 billion to $100.3 billion, as the online retailer’s shares jumped more than 2% on optimism for Black Friday sales. Online purchases forthe day are up 18.4% over last year,according to data from Adobe Analytics,and investors are betting the company will take an outsized share of online spending over the gifting season. The $100-billion milestone makesBezos(53)thefirstbillionairetobuilda12-figurenetworth since 1999,when Microsoft cofounder Bill Gates hit the mark. Bezos’sfortunerose$32.6billion this year throughThursday. As Bezos’s wealth flirts with new heights, there’s likely to be more questions about what he intends to do with it. Unlike Gates,who was the world’s richest person until Bezos passed him in October, or US investor Warren Buffett, the world’s third-richest person with $78.9 billion,Bezos has given relatively little of his fortune to charity. Bezos is only just starting to focusonphilanthropy,andinJune tweetedarequestforideasonhow to help people.Since 2002,Bezos has given away Amazon shares worth about $500 million at current prices.The billionaire said in April that he sells $1 billion of Amazon stock every year to fund his space business Blue Origin. Gates (62), who has a net worth of $86.8 billion,would be worth more than $150 billion if he hadn’t given away almost 700 million Microsoft shares and $2.9 billion of cash and otherassets to charity,according to an analysis of his publicly disclosed giving since 1996. he adds. Another major two-wheeler maker in India,Honda Motorcycle and ScooterIndia (HMSI),believes that the current electric vehicle capabilities are not anywhere on parwith the traditional internal combustion engine. Continued on Page 11 Centre-state bonhomie Home minister Rajnath Singh with chief ministers and representatives of various states at the 12th meeting of the Standing Committee of Inter-State Council in New Delhi on Saturday (Reports on Page 3) PTI PAUCITY OF INPUT TAX CREDIT Oil firms to take `15k-cr hit VIKAS SRIVASTAVA Mumbai, November 25 OILAND GAS companies are expected to take a `15,000-crore hit in 2017-18, as they are unable to fully offset the taxes paid on input goods and services,analysts said. These companies’outputs — crude oil, petrol, diesel, aviation fuel and natural gas — are not under the Goods and Services Tax (GST) and continue to attract excise duty, central sales tax and state VAT. In the GST system, firms pay their output taxes not just in cash,but also by utilising the input tax credits (ITC). But if outputs are outside GST, the entire ITC can’t be utilised. The hybrid tax system in the petroleum sector — kerosene, LPG and naphtha are under GST while other products are not— increases the cost of production for both the upstream and downstream companies. The non-availability of such credit required is high, at around `15,000 crore,i.e.,`7,000 crore in upstream sector and `8,000 crore in downstream sector, as per an estimate by Federation of Indian Petroleum Industry (PetroFed). Continued on Page 11
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