OPINION, P8 COMPANIES, P6 PARTNERSHIP EDITORIAL Don’t dilute law to allow promoters to bid in the NCLT Too many caveats in the Taj Hotel bids will ensure the govt gets a lower value INTERNATIONAL, P16 MEDIA SHAKE-UP Tata Group, GE to make aircraft engine components Bob Iger-led Disney to buy Fox film, some TV units for $52 bn MUMBAI, FRIDAY, DECEMBER 15, 2017 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 231, 24 PAGES, `6.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 33,246.70 ▲ 193.66 NIFTY: 10,252.10 ▲ 59.15 NIKKEI 225: 22,694.45 ▼ 63.62 HANG SENG: 29,166.38 ▼ 55.72 `/$: 64.35 ▲ 0.09 `/€: 76.09 ▼ 0.41 BRENT: $62.09 ▼ $0.35 GOLD: `28,411.00 < > `0.00 — PUSHING CREDIT GROWTH PSB recap a priority, says Jaitley Notes lending capacity constrained due to capital shortage; also flags investment in infrastructure FE BUREAU New Delhi, December 14 Banks should disclose corp defaults: Tyagi SECURITIES AND Exchange Board of India (Sebi) chairman Ajay Tyagi said on Thursday banks should disclose defaults in corporate loans, similar to the system in place for corporate bonds, reports Reuters. Tyagi said that it was an issue that regulators would need to address. Tyagi also pushed for a reduced reliance on bank loans, saying more such financing should be provided via corporate bonds. Moody's outlook on India Inc stable, barring telcos GLOBAL RATING agency Moody's on Thursday said it has a stable outlook for nonfinancial corporates in the country, except for telcos, on which it has a negative outlook for 2018, reports PTI. The agency also has stable outlooks for carmakers, and companies in the construction, cement and textiles sectors, but a negative outlook on the real estate sector. The agency also has a stable outlook for exploration and production firms. On infrastructure ■ Expenditure on rural infra to push growth significantly On PSBs recapitalisation ■ Recapitalisation to improve lending to MSMEs On GST ■ Lower tax liability on MSMEs to spur formalisation IN THE NEWS SC order on Aadhaar linking today THE SUPREME Court will pronounce on Friday its interim order on mandatory linking of Aadhaar with various schemes and services, including bank accounts, even as the Centre extended the deadline up to March 31 next year, reports fe Bureau in New Delhi. A five-judge Constitution bench headed by Chief Justice Dipak Misra said the final hearing on the petitions challenging the Aadhaar scheme itself would start on January 17. FM SPEAK Prime Minister Narendra Modi shows his finger marked with indelible ink as he leaves after casting his vote during the second phase of the Gujarat assembly elections in Ahmedabad on Thursday ASSEMBLY ELECTIONS Gujarat: Exit polls put BJP in pole position Landslide win in Himachal as well; BJP set to begin sixth term in Gujarat holding on to current strength, suggest polls EXIT POLL GUJARAT ■ Total seats: 182 ■ Majority: 92 BJP Congress Republic-C-Voter 108 74 0 Today's Chanakya 135 47 0 ABP-CSDS-Lokniti 117 64 1 99-113 68-82 1 117 65 1 Zee News-Axis EXPRESS NEWS SERVICE New Delhi, December 14 THE BJP IS headed for a landslide win in Himachal Pradesh trouncing the incumbent Congress there and is set to begin a record sixth consecutive term in power in Gujarat holding on to its current strength, all exit polls on TV channels suggested on Thursday. All exit polls broadcast in the evening predicted a landslide win for the BJP in Himachal Pradesh and avictoryin Gujarat, with one pollster indicating the BJP may register a spectacular victory with almost a threefourths majority. Forthe Congress,the exit poll data is a disappointment after what many in the party say was their most spirited campaign in the state led by Rahul Gandhi, who is set to take the reins of the partyas its newpresident on December 16. The lowest for the BJP in Gujarat has been predicted by India QuickPicks WPI inflation touches 8-month high on onion,vegetable prices INFLATION BASED on wholesale prices accelerated to an eight-month high of 3.93% in November due to a sharp rise in onion prices and costlier seasonal vegetables, government data showed on Thursday, reports PTI. Calculated on the Wholesale Price Index (WPI), inflation was 3.59% in October this year, and 1.82% in November last year. The November figure is the highest so far this fiscal; the previous high was when the WPI touched 3.85% in April. Kitchen staple onion witnessed 178.19% inflation last month. PAGE 2 Vodafone arbitration: SC allows appointment of chairman PAVING THE way for the Vodafone Group’s second arbitration process under an India-United Kingdom treaty, the Supreme Court on Thursday allowed the telecom major to appoint a presiding arbitrator/ chairman in connection with a tax demand of `20,000 crore on the company over its $11-billion acquisition of Hutch’s stake in Hutchison-Essar in 2007, reports fe Bureau in New Delhi. PAGE 6 Turnover at Flipkart wholesale arm up at `15,264.4 cr FLIPKART INDIA, the wholesale arm of e-commerce retailer Flipkart, posted a turnover of `15,264.4 crore for the year ended March 2017, an increase of 15.8% over the revenues of `13,177 crore in FY16, filings with the registrar of companies and data platform Tofler showed, reports Anushree Bhattacharyya in New Delhi. The net worth of the company stood at `3,946.6 crore. Losses in FY16 had narrowed to `544.3 crore, from a loss of `828.2 crore in the previous year. PAGE 6 Poll of polls HIMACHAL ■ Total seats: 68 Others ■ Majority: 35 BJP Congress Republic-C-Voter 41 25 Others 2 Today's Chanakya 55 13 0 ABP-CSDS-Lokniti 35-41 26-32 0-2 Zee News-Axis 51 17 0 Poll of polls 46 21 1 Today-Axis MyIndia surveywith 99-113 and the highest by News 24-Today’s Chanakya that forecast 124-146 seats forthe BJP,up to 31 seats more than its present tally of 115 in the 182-member assembly. In the 2012 assembly polls in Gujarat,the BJP had won 115 seats,the Congress 61. ForHimachal Pradesh,with a strength of 68 seats, the lowest predicted for the Congress was 6 by News 24-Today’s Chanakya and the maximum for the BJP was 55 by Chanakya and India Today-Axis My India survey. In the 2012 polls in Hi- machal Pradesh, the Congress hadwon 36 and the BJP26 seats. Gujarat has seen a high-decibel,bitter and intense campaign with Prime Minister Narendra Modi leading the BJP while Gandhi led his party’s battle in the state. The last week of the campaignwitnessed a public spat between the two parties after Congress leader Mani ShankarAiyar using the word “neech” for the prime minister forwhich he was criticised vehemently. Continued on Page 2 LACK OF CONSENSUS WTO ministerial ends in a deadlock BANIKINKAR PATTANAYAK Buenos Aires, December 14 THE 11TH MINISTERIAL conference of World Trade Organisation (WTO) ended in stalemate late on Wednesday as membernations failed to set aside differences on issues ranging from the role of the trade body as a multilateral institution to public procurement programmes for food security, marking the closure of the biannual event without a joint declaration. While a failure to produce a joint statement has precedents (there were deadlocks in Seattle and Cancun), what sets the Buenos Aires ministerial apart was the stinging criticism by a key member — the US — of the rules-based,multilateral trading system that theWTO represents. The US refusal to pursue a permanent solution to the issue of public procurement — as committed by it, along with all others at the Nairobi ministerial in 2015 — also cast a pall over the sanctity of pledges made at the WTO. Continued on Page 2 WHAT THE IMPASSE MEANS FOR INDIA ■ It has to continue to fight FOR WTO ■ Faces existential to protect Doha agenda and impress upon rich nations to cut tradedistorting subsidies problem; has to convince the US multilateralism is the best way to regulate global trade ■ Has to handle more pressure to accommodate developed world’s demands on new issues like e-commerce ■ Branching into areas like gender will reduce focus on hard-core trade issues and be counterproductive FINANCE MINISTER ARUN JAITLEY said on Thursday recapitalisation of public sector banks would help them to lend to medium and small enterprises,a sectorslowlymovingintotheformal economy. ■ Need to expedite infra spending in railways Jaitley noted that banks’ lending capacity was hitherto limited due to a shortage of capital. So the task before the government is to fix the banks so On divestment ■ Govt to exceed `72,500 cr divestment target for FY 18 that theywill no longerbe averse to lending to small borrowers. On October 24, the government announced a `2.11-lakhcrorerecapitalisationprogramme ● PARLIAMENT BEGINS Short session long on output hopes FE BUREAU New Delhi, December 14 ALTHOUGH THE WINTER session of Parliament beginning on Fridaywill be a short one,it could nonetheless be productive for business and financial matters. As per the current schedule, the sessionwill end on January5, 2018.There will be a total of 14 sittings. The agenda for legislation includes 25 pending Bills for consideration and passing while 14 Bills are listed for introduction, consideration and passing. ON THE TABLE ■ The Financial Resolution and Deposit Insurance Bill, 2017 ■ The Insolvency and Bank- ruptcy Code (Amendment) Bill, 2017 ■ The Prevention of Corruption (Amendment) Bill, 2013 ■ The Banning of Unregulated Deposit Schemes and Protection of Interest of Depositors Interest Bill, 2017 ■ The Factories (Amendment) Bill, 2016 One Bill is listed forwithdrawal. Among the economic and financial-sector Bills to be considered for approval, the Financial Resolution and Deposit Insurance Bill, 2017, seeks to create a resolution corporation to deal with bankruptcy in financial institutions. However, the bail-in provision in the Bill has raised concerns that deposits by customers in a bank could be converted into equity or even written off in the resolution process. Continued on Page 2 for state-owned lenders which have needed to make huge provisions as they have incurred large loan losses. Of this, `1.35 lakh crorewillbeintheformofrecapitalisation bonds while the remaining`76,000crorewillcome in the form of budgetary support and banks’capital-raising plans. Jaitley said that the goods and services tax (GST) regime was still in the transition phase, adding that itwould take awhile to rationalise taxes further. Moreover, the finance minister added, only when the tax base is widened in a formalised economy is rationalisation of direct and indirect taxes possible. Continued on Page 2 Motobahn P15 Car of the future? Almost Volvo’s new XC60 has a few semi-autonomous driving technologies. It can stay in its lane on its own, and automatically apply brakes if it detects an obstacle
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