OPINION, P6 BACK PAGE, P16 SAMIRAN CHAKRABORTY Laggard states must work on boosting their capex growth ECONOMY, P2 SUNIL JAIN NATION PAYS TRIBUTE TRADE REFORM Inequality falls with better access to roads, power, etc, not just higher GDP growth Bollywood, fans mourn passing away of actor Sridevi India calls for changes in WTO to transform global economy MUMBAI, MONDAY, FEBRUARY 26, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 292, 16 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 NOTED ARCHITECT Hafeez Contractor has offered to design for free 19 stations across the country as part of a railways redevelopment project, reports PTI. Sanjeev Kumar Lohia, MD and CEO of IRSDC, the nodal agency for redeveloping 600 stations, said Contractor was among four who had offered to design stations free of cost. Chana Wheat MSP is 1.5 times the A2+FL cost as proposed in the Budget, then the cost to the exchequer to keep the Budget promise of pricesupporttofarmerswould be even higher. While fresh arrivals of chana are fetching 20% below the MSP,wheat prices too have remained depressed — at 5-8% below the MSP — since the new crop hit the market in Gujarat and Madhya Pradesh. Tradersexpectthisrabiseason’s chana production to be CONSUMPTION SURVEY Special Features Income to pick up but not spends A push towards human-plus machines, courtesy AI Artificial intelligence has started to resonate strongly among Indian firms given their manifold benefits. Sectors beyond IT are expected to integrate this tech in their businesses ■ eFE, P8 122.6 125 115 118.8 105 95 85 Check how the new PPF rules can impact you 95.5 2012 2013 2014 2015 Current situation index A new amendment proposes to allow investors to withdraw money from their PPF account before completion of five years in case of exigencies ■ Personal Finance, P9 RIL commits investments worth `55,000 cr in Andhra Pradesh GIVING A big fillip to Andhra Pradesh, Reliance Industries (RIL) on Sunday committed to investing `55,000 crore in the state, reports BV Mahalakshmi in Visakhapatnam. RILwill invest around `40,000 crore in an oil and gas venture in AP and another `15,000 crore for expanding digital infrastructure operations in the state. The two MoUs were signed at the CII Partnership Summit. PAGE 5 91.1 96.9 2016 2017 Future expectations index FE BUREAU New Delhi, February 25 QuickPicks 114.7 URBAN CONSUMERS APPEAR to have turned a shadeoptimisticastheylookat the year ahead and compare it with today’s situation. The Reserve Bank of India’s (RBI) future expectations index rose to 122.6 in December from 114.7 in November. However, although they see income going up, they believe spending — both on essential and non-essentials — will fall. Meanwhile, the pick-up in rural nominal wages has started to moderate and farm distress hasn’t eased meaningfully. However, farm incomescouldgetaboostfrom the government’s plans to compensate farmers for anyshortfall in crop prices and also its rural infrastructure push next year. High frequency indicators show while volumes for some products — tractors for instance — are growing fast, for a whole host of products, sales volumes could take time to meaningfully cross previous peaks. For one, low employment generation in urban India could keep a lid on spends, especially on big ticket items such as homes. Ruralspendswoulddepend on the crop output and the remuneration. Continued on Page 2 DIGITAL PLATFORMS IN 2017 Advertisers see a new hot star in OTT MOVING ONLINE % growth (2016-17) Contribution to total ad revenue 4.3 27.2 9,303 7,315 Digital pace of the change in viewing patterns, with a shift away from television to smaller screens, is taking everyone by 38% 15% 2017 TV 2016 37% 17.5% Source: Pitch Madison report 2016 2017 ` crore 19,650 DIGITAL PLATFORMS ARE attracting more advertising revenues each year. Last year, they attracted 27% more advertising than they did in 2016,and at `9,303 crore,the amount was just short of 18% of total ad spends. As Pitch Madison pointed out in its study, the television segment, which has for years commanded the lion’s share of advertising notched up a growth in ad revenues of just 4.3% growth. To be sure experts had been correct in their forecasts the rise in ad spends on digital platforms would be swift; the 18,831 ANUSHREE BHATTACHARYYA New Delhi, February 25 surprise.BankofAmericaMerrill Lynch analysts had forecast that digital’s share of ad revenues will hit 26% by end 2019. At the end of 2017, the share was shy of18%. India now has a total number of data users of 500 million compared with 254 million a year ago. Powered byits cricket content, Hotstar now counts 100 million users comparedwith 63.4 million a year ago. Hotstar reported a revenues of `186 crore in FY16 — its first full year of operation — a filing with the registrar of companies (RoC) showed. The biggest beneficiaries of the consumers increasing preference for OTT (Over The Top) platforms are the content creators. Continued on Page 2 NHAI Awards NHIDCL SHUBHRATANDON & SURYA SARATHI RAY Mumbai/Delhi, February 25 DISRUPTED BYTHE rollout of GST in July, the government’s targets for awarding road contracts in the current year look like they’re going to slip. However,NHAI orthe National Highways Authority of India has come up with a fairly busy bidding calendar for February and March and hopes to end the year awarding anywhere between 6,000 and 8,000 km. Nitin Gadkari, union minister for road transport & highways, shipping and river development, was hoping to bid out contracts for 25,000 km in 2017-18. NHAI was to have awarded 10,000 km but MoRTH NHAI 322 2,073 Continued on Page 2 MoRTH AprJan 2018 4,044 Continued on Page 2 ■ Procurement at MSPs mainly for rice and wheat, both sold at heavily subsidised prices under Food Security Act; with government purchases practically limited in case of most pulses and oil seeds, Budget promise of ensuring MSP to farmers could be hugely expensive Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Nov Dec Mar May Jun Sep Nov Dec IN THE NEWS Hafeez Contractor offers to design 19 rly stations for free around 10 million tonnes (mt) up from 9.33 mt last year,considering that sown area has gone up by 8% over last year. About 5% of the production has already been sold in the market without any price support. Given that farmers could keep 15% of the produce as seeds and for own/local consumption, the chana output that will be eligible for deficiencypaymentscouldbe8mt. ■ Despite a recent hike in import duty, chana prices in key mandis ~1,650 across the country are ruling at 20% below MSP of `4,400/quintal, could MSP depress further as arrivals pick up 1,735 PRABHUDATTA MISRA New Delhi, February 25 IF MARKET PRICES of chana,a rabipulse,remainatthecurrent levels through the season, the Centre and states will have to fork out a whopping `6,400 crore to ensure farmers get the minimum support price (MSP) forthecropbywayofdeficiency payments.Andthatisjustabout onecropinoneseason.Thecost to the exchequer will multiply and could easilybe in thevicinity of an annual `80,000 crore estimatedbyFEearlierifallvolumesoffarmproduce—except fruits and vegetables — that arenotprocuredbythegovernmentattherespectiveMSPsare to be given prompt and complete deficiency price support, as promised in the recent Union Budget. Indeed,these are estimates based on current MSPs; if the Chana Tur Urad Moong 2,008 Avg mandi price now AS ABOUT 70% of GST refunds are stuck due to flawed information, the CBEC has asked exporters to amend the details in the final returns ofsubsequentmonthtoenable the department to process the refund claims by March. The Central Board of Excise and Customs (CBEC) has sanctioned`4,000croreworth refunds to exporters in four months since October. Still about `10,000 crore worth of claims are stuck due to discrepancies in the information furnished byexporters to GST Network (GSTN) in filing GSTR 1 or Table 6A or GSTR3Bandshippingbillfiled with Customs. “The analysis of data indicates that only about 32% records of GSTR 1/Table 6A have been transmitted from GSTN to Customs. In other words, a majority (about 70%) ofrefundclaimsareheld up either due to insufficient information or lack of due diligence on the part of exporter while filing GST returns,” the CBEC said in a communication to principal commissioners. 3,484 ~3,600 Crop year 2016-17 Production Procurement 93.3 0.6 47.8 11.63 28 0.89 21.6 2.2 340 Avg mandi price now (lakh tonne) (in km) 223 (`/quintal) AprJan 2017 2,912 MSP 4,400 Procurement of pulses minimal PRESS TRUST OF INDIA New Delhi, February 25 ● GOA MINING GST slows pace of awards in 2017-18 2,697 If market prices of chana stay at the current levels, the Centre and states will have to fork out a whopping `6,400 crore 70% refunds stuck due to flawed claims: CBEC ROAD PROJECTS 4,780 Mandi prices suggest govt tab may be high ● IGST 2,876 PRICE SUPPORT FOR CROPS NHIDCL Construction had bid out some 2,697 km till end January. This was lower than the 2,912 km awarded in the April to January period of 2016-17. MoRTH and NHIDCL were together to have awarded 15, 000 km but have so far managed 3,099 km. The rollout of the GST appears to have stalled the preparation of DPRs (detailed project reports) of developers since the tax implication of the new indirect tax levy needed to pencilled in while working out the costs. The number of projects bid out in the three months to June 2017 was significantly lower than the number bid out in January-March 2017. Continued on Page 2 SC verdict to hit growth, says Vedanta chairman PRESS TRUST OF INDIA Visakhapatnam, February 25 MINING MOGUL Anil Agarwal has said the Supreme Court’s decision to quash all iron ore mining permits in Goa will hamper India’s economic growth as raw material for making steel will have to be imported, resulting in jobs being created outside the country. He said iron ore mining in Goa gave the government `6,000 crore in revenue, boostedexportsby$7-8billion and created about 3 lakh jobs. “This is a pin prick which willdestabiliseourcountry,”he said.“Are we going to shut our country?” he asked. “It will hamper our growth”. TheSupremeCourthadearlier this month quashed all 88 mining leases renewed by the state government, saying they were hastily renewed just before an amendment to the Mines and Minerals (Development and Regulation) Act madeauctionofleasesmandatoryforminingnotifiedminerals like iron ore. Agarwal’s Vedanta is the biggestironoreminerinGoa.It will be impacted by the apex court’s decision to stop mining in Goa, which produces lowqualityironore,afterMarch15.
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