OPINION, P8 NATION, P5 INTERNATIONAL, P16 FODDER SCAM REPLACING SAMSUNG SCREENS Former Bihar CM Lalu Prasad convicted in fourth case Tim Cook-led Apple said to be developing own device displays EDITORIAL Siddaramaiah’s north-vs-south tax debate unfortunate While buying power NPAs at a discount, PSUs must carefully look at impact of fuel costs MUMBAI, TUESDAY, MARCH 20, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 310, 20 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: 32,923.12 ▼ 252.88 NIFTY: 10,094.25 ▼ 100.90 NIKKEI 225: 21,480.90 ▼ 195.61 HANG SENG: 31,513.76 ▲ 11.79 `/$: 65.18 ▼ 0.24 `/€: 80.05 ▼ 0.02 BRENT: $66.30 ▲ $0.09 GOLD: `30,154.00 ▼ `145.00 BID FOR BINANI Binani gets ‘comfort’ letter from UltraTech CONCERNED OVER what it perceives as a tendency among a section of taxpayers to over-claim transitional credits in the GST regime, the Centre has arrogated to itself the power to verify these claims, a move that might not go down well with the state governments, reports Sumit Jha in New Delhi. Since GST's July 2017 launch, taxpayers have claimed `1.6 lakh crore transitional credit (for taxes like excise and service tax paid in the pre-GST period), denting the central GST (CGST) payments in cash. CBI chargesheet against Canara Bank ex-CMD THE CBI on Monday charged former chairmancum-managing director RK Dubey and two of the then executive directors of Canara Bank with cheating and forgery in the alleged loan default of over `68 crore sanctioned in 2013, officials told PTI. They said the agency has filed a chargesheet in the Tis Hazari Court against Dubey, the then executive directors (Ashok Kumar Gupta and VS Krishna Kumar), and two directors of the Occasional Silver Company (Kapil Gupta and Raj Kumar Gupta) in the case. FE BUREAUS Mumbai/Kolkata, March 19 Not for hire Most phones (inset) showed ‘no cabs available’ when consumers tried to book a cab in Mumbai on Monday as drivers of app-based cab aggregators Uber and Ola went on an indefinite strike against low pay. The strike was called by the MNS’s transport wing. Page 6 TACKLING TURBULENCE IndiGo to shore up depleted fleet with 35 new aircraft Move aimed at mitigating curtailed capacity due to withdrawal of 11 A320neos over engine issues MANISHA SINGHAL Mumbai, March 19 IN ITS BID to recover from the setback of having to ground 11 aircraft in its fleet owing to engine issues,and to cope with questions related to safety of a sectionofitsfleet,thecountry’s largest domestic carrier IndiGo ispullingoutallstopstoexpand its fleet by35 aircraft through a two-pronged approach.First,it now expects to add its earlier planned 15 ATRs (a turbo-prop 78-seater plane) before the end Special Feature The growing popularity of ‘messenger’ of payments As mobile wallet companies face the heat of KYC norms, instant messaging/chat apps have been leveraging their popularity and stickiness to expand into payments. How will things pan out? QuickPicks Sensex slides for 5th day to below 33,000-mark, Nifty below 10,100 THE Sensex on Monday cracked below the 33,000-mark by falling nearly 253 points, extending its slide for the fifth straight session on unabated foreign fund outflows amid weak global cues, reports PTI. Nifty, too, fell below the 10,100level by dropping 100.10 points to end at 10,094.25 due to foreign fund outflows amid rising bond yields. PAGE 11 Bandhan Bank IPO subscribed nearly 15 times on final day THE INITIAL public offering (IPO) of Bandhan Bank was subscribed by 14.59 times on Monday, the last day of the offer, with investors bidding for 121.84 crore shares against the 8.34 crore on offer, reports fe Bureau in Mumbai. Qualified institutional buyers bid for 92.26 crore shares against the 2.38 crore on offer while HNIs for 24.85 crore shares against the 1.78 crore offered. PAGE 11 Consider objections to Tata Steel bids: NCLT to Bhushan Steel CoC THE NATIONAL Company Law Tribunal (NCLT) on Monday asked the committee of creditors (CoC) of debt-ridden Bhushan Steel to consider the objections raised by its employees over the bids submitted by Tata Steel, reports PTI. The CoC, which is scheduled to meet on Tuesday to take up the resolution plan of highest bidder Tata Steel, would consider the staff’s objections. FLIGHT PLAN ■ IndiGo to add 15 ATRs by 2018-end ■ To up A320ceo deliveries to 45 from 25 by March 2019 ■ Will focus on red-eye flights to bolster schedule, sweat assets ■ Pratt & Whitney will give IndiGo preference in engine retrofitting of 2018 calendar. Second, sourcessaid,ithasinitiateddiscussions with European airplane makerAirbus to increase itsexistingscheduleddeliveries of 25A320ceos (current engine option) to 45 A320ceos by March 2019. Thediscussionsareaimedat helping the airline mitigate its curtailedcapacityduetoitsnarrowbodyaircraft,theA320neos, being withdrawn from service, awaiting engine replacements. It must be noted that aircraft ordersanddeliveriesareusually planned well in advance. The additional 20 aircraft are likely to be provided to IndiGo as part of renegotiation with Airbus, given the exceptional circumstances and the uncertainty regarding the timeline forresolutionoftheengineproblemsof the airline's grounded aircraft. Sources also said that IndiGo, will now, as an immediate measure, focus on redeye or late night flights (that arrive early morning), as a move aimed at sweating the existing aircraft in its fleet. Continued on Page 2 PM’S EMPLOYMENT SCHEME Only 9% of 4 lakh applicants get loans SHAYAN GHOSH Mumbai, March 19 LESS THAN 9% of the roughly four lakh applicants under the Prime Minister’s Employment Generation Programme (PMEGP) have beengrantedloanssofarinthe 11 months to February. Data from the ministry of micro, small and medium enterprises (MSME) show that banks have disbursed loans to only 36,109 applicants. The reasons range from the projects being unviable,not in service area of the bank orpast defaults by the promoter. In 2016-17, the share of loans disbursed was better at 11.39%, while in 2015-16 it was even higher at 14%. Even before lenders reject proposals, the District Level TaskForceCommittee(DLTFC) finds that a good number of applications are incomplete. Giriraj Singh,minister of state (independent charge) for MSME recently said “about 50% of the applications are rejected at the DLTFC level due to non-completion of various documents, vague information in the applications,lack of knowledge etc”. Singh added that around 30-40% of the applications arerejectedbythebankswhich take a decision based on the viability of the project. The minister also said the Khadi and Village Industries Commission(KVIC)andDLTFC were scrutinising the applications to make sure the criteria were being fulfilled. Continued on Page 2 DROP IN DISBURSAL Vidharbha Konkan Gramin Bank 333 (No of applications rejected) Gramin Bank of Aryavart 355 Axis Bank 365 Canara Bank 7,773 ICICI Bank 360 Bank of Baroda 10,487 Bank of India 11,681 PNB 21,846 State Bank of India 49,487 1,93,313 Total: (Total of 122 lenders) Allahabad Bank 7,655 Central Bank of India 9,386 ULTRATECH CEMENT ON Monday said its board had approved a comfort letter for an amount of `7,266 crore to be given to promoters of Binani Cement signifying its intenttobuya98.47%stakein the company. The purchase can go through either if insolvency proceedings, under the purviewof the IBC (Insolvency and BankruptcyCode),against Binani Cement are terminated or the National Company Law Tribunal(NCLT)permits Ultratech’s revised bid to be considered. The resolution professional has said the preferred bidder is Dalmia Bharat. KKMaheshwari,managing director, Ultratech said the assurance for an amount of`7,266crorehadbeengiven in response to a request by 2017 July 25: Company admitted to NCLT FE BUREAU New Delhi, March 19 ings,nowthat it is in a position to payoff the lenders.The next hearingonthematterisscheduled for March 22. Meanwhile,theNCLTisalso hearing a petition of UtlraTech Cementwhich has sought that its revised bid be considered. Continued on Page 2 Continued on Page 2 Binani Cement's IBC journey March 8: UltraTech submits revised bid for Binani Cement March 19: UltraTech inks pact to buy 98.47% from parent for `7,266 crore March 14: CoC meets to consider resolution plans submitted for Binani Cement March 19: UltraTech appeals to NCLTKolkata for consideration of its revised plan March 15: Dalmia Bharat says CoC has approved its resolution plan March 19: SBI Hong Kong asks NCLT Kolkata to consider principle of ‘equity’ March 19: NCLT Kolkata sets March 22 as next date for hearing BinaniIndustries,theparentof Binani Cement. With this, the resolution process for Binani Cement has acquired an altogether new dimension. Binani Industries is expected to move the Kolkata bench of the NCLT seeking to bring the company out of the insolvency proceed- US supports WTO, wants reforms: Azevedo THE GLOBAL TRADE environment remains fraught with risks but the US — the original proponent of the World Trade Organization (WTO) that has now become its most vocal critic — supports the multilateral trading body even though it wants reforms in it, WTO director general Roberto Azevedo said on Monday. The WTO chief, however, expressed concerns over the US blocking the appointment of appellate body members, which, unless resolved fast, would cripple the international trading body’s dispute settlement prowess. Although the WTO chief didn’t elaborate on the specific reforms sought by the US, Azevedo’s statement on the sidelines of a mini-ministerial in New Delhi suggests the world’s largest economy under Donald Trump is unlikely to insist on dismantling the WTO, though it has criticised rule-based, multilateral trading system the body represents. February 19: Binani Industries seeks to fully participate in resolution process 2018 IN THE NEWS GST: Only Centre to verify claims of transitional credit Binani will now approach NCLT to terminate the insolvency proceedings ● MINI-MINISTERIAL
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