OPINION, P8 COMMODITIES, P14 K SRINATH REDDY Insurance can’t ever replace good primary healthcare INTERNATIONAL, P16 EDITORIAL PRICE PROBLEMS BACK TO EARTH Important to learn from Madhya Pradesh’s scheme for MSP-based deficiency payments Will seek lower oil rates from Saudi Arabia and US, says Pradhan Day after rocket launch, Musk-led Tesla posts biggest quarterly loss KOLKATA, FRIDAY, FEBRUARY 9, 2018 VOLUME XXVII NO. 86, 26 PAGES, `5.00 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE (NORTH EAST STATES & ANDAMAN `10.00) WWW.FINANCIALEXPRESS.COM 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 READ TO LEAD SENSEX: 34,413.16 ▲ 330.45 NIFTY: 10,576.85 ▲ 100.15 NIKKEI 225: 21,890.86 ▲ 245.49 HANG SENG: 30,451.27 ▲ 128.07 `/$: 64.26 ▲ 0.03 `/€: 78.69 ▲ 0.67 BRENT: $64.88 ▼ $0.63 GOLD: `29,881.00 ▼ `301.00 BHUSHAN POWER & STEEL Bids in from Tatas, JSW IN THE NEWS CCI imposes `136-crore fine on Google THE COMPETITION Commission of India (CCI) on Thursday imposed a fine of `136 crore on search engine major Google for unfair business practices in the Indian market for online search, reports PTI. Passing the order on complaints that were filed in 2012, the regulator said the penalty is being imposed on Google for "infringing anti-trust conduct". It was alleged that Google is indulging in abuse of dominant position in the market for online search through practices leading to search bias and search manipulation, among others. The penalty amount of `135.86 crore translates to 5% of the company's average total revenue generated from India operations from its different business segments for the financial years 2013, 2014 and 2015, according to the CCI order. The ruling has come on complaints filed by Matrimony.com and Consumer Unity & Trust Society (CUTS) against Google, Google India and Google Ireland. Firm’s fair value pegged at close to `25,000 crore, liquidation value estimated to be in the range of `10,000-12,000 cr FE BUREAUS New Delhi/Mumbai, February 8 TROUBLED STEELMAKER BHUSHAN Power & Steel has received bids from just two companies — Tata Steel and JSW Steel — under the insolvency resolution process, people familiar with the development told FE on Thursday. WhileThursdaywasthelast day for submitting bids, the `47,302 cr Amount claimed by 33 financial creditors as on January 31 `2,433 cr Company's reported net loss in FY16, according to Capitaline data exact value of the bids is not known. Interestingly, Tata Steel and JSW Steel have also bid for Bhushan Steel. `37,248 cr Firm's gross debt in FY16, up from `33,785 crore in previous fiscal According to the information received by FE, the fair value of the company has been pegged at close to `25,000 the bankruptcy court has the powers to replace an RP if not satisfied. It was hearing an appeal by Devendra Padamchand Jain,the RPforVNRInfrastructures, against his removal bytheNCLT’sHyderabadbench. Details on Page 10 Continued on Page 2 ADAYAFTERthemonetarypolicy committee flagged risks to inflation from a fiscal slippage, financeministerArunJaitleyon Thursday said that Centre has beenstickingtofiscalprudence ever since the NDA came to powerandwillcontinuetodoso in the comingyears. ReplyingtoadebateonBudget 2018-19 in the Lok Sabha, Jaitleysaid the government has consistently reduced fiscal deficit from 4.5% of gross domesticproduct(GDP)inFY14 to the estimated 3.5% in the currentfiscal.Theslippageof30 basis points from the FY18 targetof3.2%wasastatisticalartefact that would have been bridged had the government factored in a full-year GST collection, instead of that of 11 months in the first year of its launch following the introduction of a new accounting system, he stressed. The government has set FY19 fiscal deficit target at 3.3% instead of 3% aimed earlier. Though the FinanceBillhassettheFY20target at 3.1%, economic affairs secretarySCGarghassaidfiscal Continued on Page 2 Powers of RP not limitless THE COMMITTEE OF creditors set up to evaluate bids for Electrosteel Steels is yet to receiverecommendationsfrom theresolutionprofessional(RP), sources told Shamik Paul in Mumbai.The delay has led to speculationtherecouldbe asecondroundofbidding.However, WHILE THE INDIAN bankruptcy code has vested significant powers in the hands of the resolutionprofessional(RP),the National Company Law Appellate Tribunal (NCLAT) has ruled that these are not without limits, reports Shayan Ghosh in Mumbai. It has clarified that The art of making a car look younger Need for speed Actor Sonakshi Sinha poses with the new DC sports car on the second day of the 14th edition of the Auto Expo in Greater Noida on Thursday Related reports on Page 6 QuickPicks PDS: Govt plans to launch inter-state mobility soon THE GOVERNMENT plans to allow all ration card holders to buy their wheat and rice quotas from any fair price shop of their choice anywhere in the country, starting from April, reports Prabhudatta Mishra in New Delhi. The food ministry has finalised an action plan as 56% of the ration shops have started using electronic point of sale (ePOS) devices. PAGE 2 Prepaid payment instrument transactions cross 100-m mark PREPAID PAYMENT instruments (PPIs), comprising chiefly mobile wallets, crossed the 100-million mark to clock a total of 113.63 million transactions in January as per representative data from the Reserve Bank of India (RBI), reports fe Bureau in Mumbai. The RBI had started releasing such data, based on transactions at eight non-bank issuers, in November 2016. PAGE 10 Indivior files fresh patent lawsuit against Dr Reddy’s UK-BASED Indivior on Thursday said its US unit Indivior Inc has filed lawsuits against Dr Reddy's Laboratories, Actavis Generics, Par Pharmaceutical, Alvogen Pharmaceutical and Teva Pharmaceutical Industries for infringing US patents for the company's Suboxone sublingual film product, reports fe Bureau in Hyderabad. PAGE 6 ● AUTO EXPO 2018 Hybrids first for most carmakers VIKRAM CHAUDHARY New Delhi, February 8 WHILE ELECTRIC IS certainly the future, majority of car manufacturers believe that hybrid is the bridge which needstobebuiltintheinterim. Simply put, since the infrastructure and ecosystem for hybrid is fully in place, it can start immediately. Barring Tata Motors,which wants to straightaway move from the internal combustion engine (fuel technology) to electric, others like Maruti Suzuki India, Hyundai Motor, and Honda Cars first want to focus on hybrids and gradually move on to electric vehicles. Thereasonforsuchadivergent approachbetweenTataMotors and the others is because the former does not have hybrid technologyatpresentwhilethe others do. Hybridcarsusebothanelectric motor and fuel technology topowerthewheels.Theelectric DIFFERENT STRATEGIES ■ Maruti, Hyundai and Honda have hybrid vehicles in their portfolio ■ They plan to build EVs alongside hybrid vehicles ■ Tata Motors doesn't have hybrid vehicles in its portfolio ■ It will directly move on to making EVs motorgetsitsenergyfromabattery, and the engine gets its energyfromthefuel.Inahybrid, the engine charges the battery. An EV also runs on a battery, but the power, or charge, comes via a charging station, and the charging time ranges from 6-8 hours. Continued on Page 2 Points out GDP growth is expected to drop only 0.4 percentage points in current fiscal SWIGGY, THE LEADING ONLINE food ordering and delivery app, has raised its largest-ever funding of $100 million from existing investor Naspers and a new investor, Meituan-Dianping, a Chinese e-commerce platform. This Fseries round of funding for Swiggy comes just nine months after its E round of funding in May 2017 of $80 million. This latest round of funding takes the total cumulative funding received by the food delivery app company to $255 million. The other investors in Swiggy are Accel Partners, NorwestVenture Partners,Harmony Partners, Bessemer VenturePartnersandSAIFPartners. “Swiggy has continued strong growth through 2017 and now has a clear lead in the market,” said Larry Illg, CEO, NaspersVentures. “The company’s performance is all the more impressive given the intense competition in India,”said Illg. Creditors see no progress Details on Page 10 Will stick to fiscal prudence, says FM FE BUREAU New Delhi, February 8 ● NCLAT ORDER DhaivatAnjaria,theRPforElectrosteelSteels,hasruledthisout. Bids had been received fromVedanta,EdelweissAlternative Asset Advisors, Tata Steel and Renaissance Steel in early January. Swiggy gets $100 m from Naspers, Chinese e-comm firm BUDGET DEBATE IN LS FE BUREAU Bengaluru, February 8 ● ELECTROSTEEL STEELS CASE Motobahn P15 The new Swift is peppier, roomier, is loaded with technology. As the brand name Swift enters into its teens (it’s 13 years old now), it looks the way a teen should crore. The firm’s liquidation value is estimated to be in the rangeof`10,000-12,000crore. As on January 31,33 financial creditors have claimed `47,302 crore from the company and the resolution professional has so far admitted claims worth `47,265 crore. The fairvalue of a company isarrivedatbyadjustingforthe value of immovable property, jewelleryandartfromthebook value. The liquidation value is the aggregate worth of a company’s physical assets if liquidated. In September last year, MahenderKumarKhandelwal sought resolution plans from potential applicants after being appointed, the RP for Bhushan Power & Steel by the National Company Law Tribunal (NCLT). ● SERIES F FUNDING DEFICIT Have steadily cut fiscal deficit since FY14; FY18 slippage a statistical artefact GROWTH GDP growth would slow only 40 bps in FY18, and not 200 bps (as claimed by Manmohan Singh after note ban) ` STRUCTURAL REFORMS Have undertaken note ban and GST in short span, UPA did none deficit can be contained at 3% in that fiscal. Bond yields have risen roughly 75 basis points in the past two months over concernsofworseningfiscaldeficit. Without naming former Prime Minister Manmohan Singh,JaitleysaidGDPgrowthis expected to drop only 0.4 percentagepointsinthecurrentfiscal to 6.7% from a year before, and not two percentage points (as claimed by Singh after demonetisation). Continued on Page 2
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.