OPINION, P8 COMPANIES, P6 INTERNATIONAL, P16 FUNDING PLANS HARD TIMES KP Singh-led DLF looks to raise `3,000 cr via QIP Dara Khosrowshahi-led Uber’s third-quarter losses widen to $1.46 bn EDITORIAL It is still not clear what net neutrality rules are trying to fix Data privacy not just about Aadhaar, think of WhatsApp and Google Maps also NEW DELHI, THURSDAY, NOVEMBER 30, 2017 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE VOLUME XLIII NO. 233, 20 PAGES, `5.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E WWW.FINANCIALEXPRESS.COM READ TO LEAD SENSEX: 33602.76 ▼ 15.83 NIFTY: 10361.30 ▼ 8.95 NIKKEI 225: 22597.20 ▲ 110.96 HANG SENG: 29623.83 ▼ 57.02 `/$: 64.32 ▲ 0.09 `/€: 76.14 ▲ 0.42 BRENT: $63.39 ▼ $0.22 GOLD: `29441.00 ▼ `12.00 IN THE NEWS Parsvnath’s `1k-cr claim against RLDA upheld LABOUR REFORMS PARSVNATH DEVELOPERS has won an arbitration award worth `1,034.53 crore, the company informed the BSE, reports fe Bureau in New Delhi. It said the development agreement that the company and its associate firm Parsvnath Rail Land Project (PRLPPL) had with the Rail Land Development Authority (RLDA) for implementation of a project at Sarai RohillaKishanganj, New Delhi, had been terminated. Disputes arising under the development agreement are pending adjudication before the arbitral tribunals, where the company and PRLPPL have claimed more than `1,500 crore. Labour ministry drops plan to allow firms with up to 300 staff lay off workers, rethinks curbs on unions CCI slaps `52-cr penalty on BCCI THE COMPETITION Competition (CCI) on Wednesday imposed a fine of `52.24 crore on the Board of Control for Cricket in India (BCCI) for anticompetitive practices with respect to the Indian Premier League (IPL), reports PTI. The watchdog had penalised the cricket body for the same amount in February 2013 as well, but that penalty was set aside by the appellate tribunal after an appeal by the BCCI. Key proposals put in abeyance LESS HOLISTIC A PACKAGE ■ To merge 44 existing labour Acts into four codes – on IR, wages, social security and industrial safety & welfare -- with the aim of simplifying them and ensuring a conducive and harmonious environment for doing business ■ While IR Code is being SURYA SARATHI RAY, New Delhi, November 29 APPROACHING THE LAST year of its tenure and elections already on top of its mind, the Narendra Modi government has decided to whittle down its ambitious labour reforms agenda. According to sources, a key proposal to allow firms employing up to 300 people — against 100 now — to retrench/lay off workers and/or close down without government approval has been removed from the Industrial Relations Code (IR Code). The labour ministry is also having second thoughts on barring outsiders from becoming office-bearers of trade unions in the organised sector and a few other proposals intended to make unions with negotiating powers more representative, like a stipulation that at lest 10% of workers are needed to form a union. The Centre has developed cold feet on these proposals even as eight states including weakened, the option of fixed-term employment that is already in force in the textile and garments sector may be extended to all sectors ■ The Code on Wages inter alia proposes to make minimum wage a statutory right and extend it to all employees — currently the relevant Act applies to 51 ‘scheduled employments’ only ILLUSTRATION: ROHNIT PHORE Pixel 2: It takes a Google to beat a Google The newly launched Pixel 2 is proof that Google has managed to create yet some more magic with software. Whether the camera or the quality of sound, the Pixel 2 is far superior to last year’s Pixel ■ Gadgets, P15 E-signatures will change the way India does business Adobe’s Abhigyan Modi says e-signatures can help remove the friction inherent in transactions that involve people, documents and data, and augment India’s digital transformation drive ■ eFE, P15 QuickPicks Capital infusion into PSBs: Govt to issue recap bonds in Dec THE FIRST tranche of recapitalisation bonds will be issued in December through a “liquidity-neutral" model whereby public-sector banks (PSBs) sell their shares to the government, which, in turn, issues longduration bonds to the banks, said an official source, reports fe Bureau in New Delhi. Of the proposed move to raise `1,35,000 crore through such bonds in two years through 2018-19, such securities worth `70,000-80,000 crore will most likely be issued this fiscal, keeping with the government’s policy of "frontloading" capital infusion into the PSBs, said the source. PAGE 2 Municipal bodies look to raise `6,000 crore through bonds THE ISSUANCE of municipal bonds is expected to gather steam over the next three financial years with about `6,000 crore expected to be raised through municipal bonds by proactive urban local bodies across India, reports fe Bureau in Mumbai. According to credit rating agency Crisil, while the amount may seem small in the context of India’s massive infrastructure needs, it is nearly four times of what was raised — `1,550 crore — in the past 20 years. There were no issuances between fiscals 2011 and 2017, it said. PAGE 10 NTPC to buy power plants to salvage the sector IN A move that may bring some relief to the troubled private power sector, state-run NTPC is looking to buy operational power assets that run on domestic coal, reports fe Bureau in New Delhi. The thermal power firm said it is specifically interested in power production units which have fuel allocation to adequately run the plants at 85% PLF or plant load factor. PAGE 2 The code,on which tripartite consultations (trade unions, employers and the government) are over and is in the final stages of drafting,will soon be sent to a group of ministers headed by finance ministerArun Jaitley for consideration. It could be tabled in the budget session of Parliament. The government had introduced in the last session of Lok Sabha the code on wages that proposes a universal minimum wage for the entire working ● PRICE UP 11-FOLD THIS YEAR Special Feature Madhya Pradesh, Rajasthan and Andhra Pradesh have already implemented all or most of them. Another major proposal in the IR Code is to introduce fixed-term employment — which was made applicable in the textile and garment industries last year — in all sectors. If these proposals are implemented, job creation will get a fillip as businesses will be encouraged to hire workers for seasonal and other jobs. BSE FILING Bitcoin goes past $10,000 in spite of warnings of a bubble BLOOMBERG New York, November 29 BITCOIN SURPASSED $10,000 for the first time and continued higher, taking this year’s price surge to 11-fold even as warnings multiplythat the largest digital currency is an asset bubble. The euphoria is bringing to the mainstream what was once considered the provenance of computer developers, futurists and libertarians seeking to create an alternative to central bank-controlled monetary systems.While the actualvolume of transactions conducted in cryptocurrencies is relatively small, the optimism surrounding the technology continues to drive it to new highs. Bitcoinhasrisenbymorethan 65%sinceOctoberalone,afterdevelopers agreed to cancel a technology update that threatened to split the digital currency.Even as analysts disagree on whether the largest cryptocurrencybymarket capitalisation is truly an asset,its $178-billion value already exceeds that of about 95% of the S&P500 Index members. population,including unorganised sector workers. The wage code will subsume four existing central labour legislations — the Minimum Wages Act, 1948, the Payment ofWagesAct,1936,the Payment of Bonus Act, 1965, and the Equal Remuneration Act,1976.Another draft code on social security has been posted on the labour ministry’s website for public comments. “Job creation needs a bold state. And, given the growing dissatisfaction around the same,sending the rights signals is crucial. Hence, this roll-back is disappointing and is contrary to the central theme of the present government,” said Rituparna Chakraborty, executive vice-president and cofounder,Teamlease. Immediately after assuming office, the present dispensation embarked on long-pending labour reforms by proposing to amalgamate 44 existing labour Acts into four codes — on IR, wages, social security and industrial safety and welfare — with the aim of simplifying them and ensuring a conducive and harmonious environment for doing business. However, stiff opposition from trade unions, including the RSS-affiliated Bharatiya Mazdoor Sangh, has slowed the reforms’ pace. Moody’s, which upgraded India’s sovereign rating by a notch to Baa2 from the lowest investment grade ranking of Baa3,has stressed that“a strong and durable recovery of the investment cycle as well as longdelayed land and labour market reforms” could put upward pressure on its India rating. The IR Code will amalgamate the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. Continued on Page 2 Dr Reddy’s faces securities class action lawsuit in US FE BUREAU Hyderabad, November 29 PHARMA MAJOR DR REDDY’S Laboratories said in a statement on Wednesday that it has been served a securities class action lawsuit in the US for alleged violations of federal securities laws. The lawsuit filed at the District Court for New Jersey seeks damages to compensate the class of investors for a ‘purported decline’ in the company’s share price allegedly caused by the misstatements or omissions. The com- Dr Reddy's Labs 2,330 2,310 Intra-day on BSE (`), Nov 29 2,310 2,290 2,276.05 Prev. close: 2,288.25 2,270 2,250 Open Close pany added that it intends to contest the case. “US Securities class action lawsuit has been served on the company in the US by the lead plaintiff,” Dr Reddy’s said in a filing to the BSE.“The company believes that the asserted claims are without merit and intends to vigorously defend itself against the allegation,” the company added. The lawsuit represented a class of investors who had purchased orotherwise acquired the company’s publicly traded shares on the NewYork Stock Exchange between June 15, 2015, and August 10,2017. Continued on Page 2 Automation and Indian jobs Benefits may outweigh costs Rising automation will force change in occupations substantially globally, according to a McKinsey report. However, in India, enough jobs are created in the "step-up" (best-case) scenario to more than offset the impact of automation. Potential work hours to be automated 400 million Workers displaced under midpoint automation scenario by 2030 (in %, under midpoint scenario, by 2030) 16 23 24 15 9 India China US Germany World 75–375 million People who may need to switch occupation by 2030 (midpoint to rapid automation scenarios) India unlikely to be affected much (million, by 2030) 57 Jobs lost^ 155 ● WINNER OF THE LIFETIME ACHIEVEMENT AWARD: COGNIZANT FOUNDER LAKSHMI NARAYANAN The man from TCS who took on TCS AGREED, THE NAME ‘Lakshmi Narayanan’doesn’t quite conjure up iconic images from the current realm of information technology. Yet that very name cannot be omitted when it comes to India’s IT firmament. While the media-shy Narayanan is adroit in building fully functional toy trains in his spare time,he’s known fortraining his guns at ITservices majors in the beginning of the new millennium.Forthe affable 64-yearold built a firm from a mere back-office outfit to a multi-billion dollar company — Cognizant. Without much chest-thumping, Narayanan took Cognizanttoabilliondollars in revenue.Sample this: When he took over as CEO of Cognizant in 2003, the IT services companyclocked a revenue of $368.2 million and at the time of leaving office in 2006, the figure had touched $1.42 billion. This was oneofthefastestgrowthtrajectories foranyITcompanybased out of India. Narayanan has been associatedwith onlytwo companies in his entire career spanning over 30 years — Tata Consultancy Services (TCS) and Cognizant. It is also pertinent to note that Cognizant has emerged as the closest competitor to TCS,going way ahead of some of its peers like Infosys and Wipro. In his 19 years at TCS, Narayananwas responsible forimplementinglarge-scaleprogrammes ofsomeofIndia’slargesttechnol- ogy services companies. Some of the projects he was engaged with had revenues bigger than many well-known ITfirms of today. An offer to join the IT captive arm of Dunn & Bradstreet in India in 1994 as the chief technology officer propelled Narayanan into a completely different orbit as one of the founding members. The Dun & Bradstreet operation was later rechristened Cognizant, which went public in 1998,with a listing on Nasdaq. Narayanan, who was born in Tamil Nadu,did his studies in Bengaluru as his fatherwas employed with the public sector firm Hindustan Aeronautics. An engineering graduate, he did his master’s in science from the prestigious Indian Institute of Science. Earlyinhiscareer, Narayanan exhibited traits that sowedthefoundationforamultibilliondollargrowthpathforCognizant. His expertise in handling very large-scale programmes proved valuable when the company pitched for business from the global banking or healthcare giants. Apart from technical expertise, Narayanan also brought in leadership qualities, demonstrated by a flow of talent from TCS into an entity that was nowhere in the reckoning at that point of time. Some of the former TCS executives who joined Cognizant now hold key positions in the company. Continued on Page 2 Jobs gained* ^Midpoint scenario *Step-up scenario Continued on Page 2 NO DIRTY LINEN On your next train trip, you could take the Khadi bed kit home SAURABH KUMAR New Delhi, November 29 HAVE YOU EVER travelled inAC sleeper class on a train and not worried about the cleanliness of the bedsheets, blankets and pillows offered toyou?That is set to change. The next time you book your train ticket you could be asked if you’d like a clean, new bed kit, comprising a towel, a single sheet, a double sheet and a pillowcoverthatyou could take homewithyou afterthe journey, Indian Railways is looking to source these pure cotton bed kits from the Khadi and Village Industries Commission (KVIC) and offer them to passengers travelling in its air-conditioned (AC) sleeper coaches at a nominal `250 per kit. Two railway officials, requesting anonymity, confirmed that the idea is being examined and a final decision on it will be taken by the end of December. The concept of takeawaybed kits and sourcing these from KVIC was mooted by railway minister Piyush Goyal during a meeting in early October. Incidentally, Prime Minister Narendra Modi ILLUSTRATION: ROHNIT PHORE in his monthly‘Mann ki Baat’radio speech on 24 September had urged the people to support the growth of the Khadi industry by using clothes made out of the fabric, which in turn will create employment for the poor. “Iamhopefulthattherailways willbeabletogiveachoicetopassengers while buying tickets to pay and buy bed kits.The kits will be delivered to buyers before the journeybegins,”saidoneoftheofficials,adding that the cost of the bedkitislikelytobearound`250. The railwayswill continue to provide pillows and blankets to all passengers, irrespective of whethertheyoptforthetakeaway kitornot.However,therailwaysis alsoconsideringofferingblankets with covers so that these can be washedandafreshcoverprovided topassengers.Atpresent,blankets are provided without covers and passengers often complain about them not being clean. Linen for 2AC and 3AC passengers are presently sourced from a private supplier,AAKASH, while in 1AC Khadi linen from KVIC is provided. Continued on Page 2
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