OPINION, P6 ECONOMY, P2 INTERNATIONAL, P13 TRADE CONNECTIVITY ‘GRAVE INFRINGEMENT’ Govt to connect highway corridors with international points for `25k cr: Gadkari North Korea says new UN sanctions an act of war EDITORIAL CAG does well to quantify tax terror— vital to fix this Abolishing MCI is a great step but the new Bill mustn't push for regulating fees MUMBAI, MONDAY, DECEMBER 25, 2017 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 239, 14 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 LACK OF RESOLUTION AMBITION SCALED UP Over 20 firms face closure IN THE NEWS Dhinakaran wins RK Nagar bypoll by big margin IN AJOLT to the ruling AIADMK, sidelined leader TTV Dhinakaran on Sunday won the prestigious RK Nagar Assembly bypoll by a thumping margin of over 40,000 votes, reports PTI. Dhinakaran, nephew of jailed leader V K Sasikala, defeated his nearest rival E Madhusudhanan ofAIADMK by 40,707 votes, officials said. The bypoll held on December 21 was necessitated following the death of J Jayalalithaa in December last year. Jairam Thakur is new Himachal CM BJP LEADER Jairam Thakur, who sprinted past party stalwarts in the race to the chief minister's office in Himachal Pradesh on Sunday, will be the first leader from the politically-significant region of Mandi to helm the hill state, reports PTI. These firms are being liquidated under NCLT even as resolution plans for only 5-6 companies have been approved so far RILeyes slot among world’s top 20 firms Renewables,digital transformation with Jio & new materials seen as growth drivers Key firms under liquidation ■ VNR Infrastructures ■ Innoventive Industries ■ REI Agro FE BUREAU Mumbai December 24 ■ Nicco Corporation ■ Oasis Textiles ■ UB Engineering ■ Bhupen Electronic ■ Hind Motors ■ Hind Motors India BANIKINKAR PATTANAYAK New Delhi, December 24 TURNING AROUND A stressed companymaybe the primaryobjective of the newinsolvencylaw, but official data suggest more firms have gone forliquidation in the new regime so far than resolution. The liquidation process has been initiated in case of over 20 stressed firms under the Insolvency and Bankruptcy Code, 2016, as lenders have failed to endorse any viable plan for their revival. By contrast, resolution plans foronly5-6 companies (including Visakhapatnam-based Synergies-Dooray Automotive) have been approved by the adjudicating authority so far. The National Company Law Tribunal (NCLT) has approved liquidation proceedings against firms such as VNR Infrastructures, Bhupen Electronic, In- ■ Hind Motors (Mohali) noventive Industries, REI Agro, Nicco Corporation, Oasis Textiles, Wind-Ways Packaging, Hind Motors,Hind Motors India, Hind Motors (Mohali),Blossoms Oils & Fats, Healthline Hospitality and Abhayam Trading, official sources told FE. Others include RG Shaw & Sons, UB Engineering, New Tech Fittings, New Tech Forge & Foundry, Micro Forge India,PoojaTex-Prints, Swift Shipping & Freight Logistics and DCM International. Many of these firms have been stressed fora long time andwere among the first batches of cases to be filed under the IBC. Continued on Page 2 ■ NCLTs get 4,300 insolvency petitions since inception, P2 World celebrates Xmas People attend Christmas celebrations outside the Church of the Nativity in the West Bank city of Bethlehem on Sunday REUTERS Artificial intelligence more hype: Murthy CORPORATE THOUGHT-LEADER and Infosys co-founder NR Narayana Murthy has flayed the high wage hikes that senior managements have been apportioning to themselves when the software industry is in trying times and has advised them to make ‘sacrifices’ to maintain common man's faith in capitalism, reports PTI. Conceding that times are difficult for the IT services sector, Murthy dismissed the commonly attributed threats of artificial intelligence and automation as "more hype than reality". Details on page 3 CENTRE-STATE JVs Special Features Our approach is always to invest ahead of the curve Microsoft India presidemt Anant Maheshwari says cloud can be a huge enabler for India as it can be used to reach different parts of the country with specific applications and capabilities ■ eFE, P8 Uplift plans for 115 laggard districts Key parameters for evaluation Health & nutrition Attended birth, immunisation, breastfeeding & stunting Sanitation Manage your retirement funds via mutual funds Education Computing & reading ability, attendance & vocational education Infrastructure Access to toilet, drinking water Two of the best mutual fund categories for retirees are liquid mutual funds andr short term debt funds. These are tax-efficient, safe and practically liquid ■ Personal Finance, P9 QuickPicks Infra programmes: Performers to grab bigger chunk of projects States that speed up various clearances are set to grab a larger slice of two of the most ambitious infrastructure programmes — Bharatmala Pariyojana and Sagarmala, involving investments of `5.35 lakh crore and `8 lakh crore, respectively--as the centre has decided to initiate a “challenge method” to foster competition among states for expeditious implementation of such projects, a senior finance ministry official told Banikinkar Pattanayak in New Delhi. Page 2 Electricity, internet, road & potable water Financial inclusion Employment, access to banking & households covered under direct benefit transfer schemes PRASANTA SAHU New Delhi, December 24 EYEINGARURALoutreachahead of the general elections in 2019, the Narendra Modi government has drawn up tailor-made action plans for 115 identified “mostbackward”districtsinthecountry toimprove theirsocio-economic profiles bymaking available basic serviceslikehealthcare,sanitation and education as well as basic physical infrastructure like roads and drinking water supply in a time-bound manner. The 115 districts, including 35 affected by left-wing extremism,were selected on parameters Progress on each indicator will be monitored quarterly and annually; districts will then be ranked based on performance like deprivation (extent of landless households), health & nutrition(institutionaldelivery,stunting of children and wasting in children), education (elementary dropout rate and adverse pupilteacher ratio) and infrastructure (un-electrified homes,lack of toilets, villages not connected by road and lack of drinking water). The government’s focus is to work with states to bring a transformative change in these backwardareasthroughrapidgovernment-anchoredprogrammesand interventions by 2022, the 75th yearof India's independence. Continued on Page 2 LOOKING UP Q2 toll revenue highest in five quarters ROUHAN SHARMA Mumbai, December 24 TOLL COLLECTIONS IN the July-September period were smartly higher at 11% year-onyear, the highest in five quarters. The uptick in traffic growth was seen from earlyAugust with the effects of GST tapering off.After three consecutive quarters of weak traffic growth and toll collection, stretching back to the demonetisation in November 2016, a clutch of 17 road projects collected `873.89 crore. These are roads developed by IRB Infrastructure, Ashoka Buildcon and Sadbhav Infrastructure Project (SIPL). Nitin Patel, non-executive Toll collections on major roads (` crore) Mumbai-Pune Surat-Dahisar Tumkur-Chitradurga Bharuch-Surat Ahmedabad-Vadodara* Jaipur-Deoli Thane-Ghodbunder7 Pune-Nashik Pune-Solapur Dhankuni-Kharagpur Jaora-Nayagaon Belgaum-Dharwad Q2FY17 Q2FY18 173.5 213.4 148.4 146.8 49.8 55.6 47.0 51.0 82.6 86.5 26.8 31.6 8.3 7.8 7.7 8.0 5.5 5.8 65.1 75.7 42.5 50.3 17.8 20.8 % Change 23 -1.06 11.6 8.5 4.7 17.9 -6 3.7 5.4 16.3 18.2 17 *Toll tariffs have been increased for these projects wef April 1, 2017 director, SIPL, said, he expects the growth rate in traffic to pick up further from Q3FY18 on- ward. He told FE, “The trend is improving.I expect the roll-out of the GST will have an increas- ingly positive impact on traffic growth in the next six months. Already, the cost of transportation has reduced for fleet-owners and the entry tax issues have been resolved at state borders, but the main saving has been in the turnaround time.We expect even more impressive growth on our Hyderabad-Yadgiri toll (HYTPL) road, due to steadily rising commercial traffic.” SIPL’s HYTPL project registered a year-on-year revenue growth of over 26% for Q2FY18. Ashish Kataria, CEO,Ashoka Concessions,concurred that the true impact of GST on traffic growth will be seen in the next few quarters. Continued on Page 2 IRFC to raise `1,000 cr via capital gains bonds INDIAN RAILWAY Finance Corporation is hopeful of raising `1,000 crore from the recent issue of capital gains bonds, its MD S K Pattanayak said on Sunday, reports PTI. With an aim to raise `500 crore with the green shoe option to retain over-subscription, IRFC is looking at mopping up `1,000 crore from the capital gains bonds, he told. Stating that IRFC opened the issue on November 10, Pattanayak said the bonds have a lock-in perio of three years and presently yields an interest of 5.25% per annum, payable on October 15 every year. Details on page 3 RELIANCE INDUSTRIES (RIL) has firmed up plans to be among the top 20 companies in the world, identifying renewables, newmaterials and digi-transformation with Jio as key growth drivers. Speaking on the occasion of the company’s 40th foundation day ceremony in Mumbai, RIL chairman Mukesh Ambani articulated his five-point dream in front of 50,000 employees and their family members. The first point in his list of five,that is,to see RILin the list of top 20 companies of the world, would entail a steep climb from its 215th position in the Fortune 500 list for India’s largest private sector company. The company ranked 20th in the list is Fannie Mae,with revenues of $107 billion.ThatismorethantwiceRIL’s turnover of $51 billion. Second onAmbani’s list is the intent to emerge as a leading provider of affordable, clean energyin India—read green and renewable energy—as we transi- ■ The plan entails a steep climb for RIL from its 215th slot in Fortune 500 list ■ To emerge as a leading provider of affordable, clean energy in India ■ Another focus area is innovative ‘new materials’ tion away from fossil fuels. The third focus area is innovative new materials.Ambani said that he expected “the world will invent new materials that will revolutionise how we manufacture and produce things, and improve the quality of life of every human being”, and he expects RIL to become a leading producer of such materials. Reliance is today the largest producer of polyester in the world and has one of the largest capacities to produce polypropylene based synthetic materials. Its ambition of wanting to emerge a leaderin newmaterials will therefore be noted byindustry leaders and market experts. Continued on Page 2
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