OPINION, P2 MIND & GAMES The one-trick ponyin Delhi IDEA EXCHANGE CARS ARE RUINING OUR CITIES Jaya Bachchan Both the public and political leaders need to wake up to the reality that we simply can’t keep jamming more cars into our cities Page 10 ACROSSTHEAISLE , P CHIDAMBARAM Vol XVII No 27 ‘I’m still known as an actor who is an MP. Proud to be an actor, but in Parliament, I represent SP’ Page 4 Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM SPOTLIGHT CARVING ACHANGE NEW DELHI SUNDAY, APRIL 29, 2018 46 Pages, `10 (Patna `11, Raipur `10) FINANCIALEXPRESS ON SUNDAY DEBT MARKET Rules relaxed for FPI investment in bonds REDFORT MAKEOVER WORDSWORTH TAKETO COURT In selected excerpts from Arun Shourie’s Anita Gets Bail, the author stresses on the need for judges to make an extra effort to learn where the world is headed Page 5 ODD & EVEN Prime Minister Narendra Modi with Chinese President Xi Jinping along the East Lake, in Wuhan, on Saturday PTI/PIB Modi, Xi look at new relationship ●Stress on peace, trade after 2-day meet PRESS TRUST OF INDIA Wuhan, April 28 PRIME MINISTER NARENDRA Modi and Chinese PresidentXi Jinping have decided to issue 'strategic guidance' to their militaries to strengthen communications to build trust and understanding, a move aimed at avoiding a Dokalam-like situation in the future. Modi said on Saturday his talks with Xi focused on diverse areas of India-China cooperation."We discussed ways to give impetus to oureconomic ties,as well as people-to-people relaROHNIT PHORE tions.Otherareaswespokeabout include agriculture,technology, energyandtourism,”hesaid. At the end of the two-day informal summit between Modi and Xi in the central Chinesecity,foreignsecretaryVijay Gokhalesaidtheyunderscored theimportanceofmaintaining peace and tranquility in all areasoftheIndia-Chinaborder region in the larger interest of the overall development of bilateral relations. Continued on Page 11 China will not push India on BRI: Page 14 ● Limit on borrowing costs for some ECB maturities eased FE BUREAU Mumbai, April 28 (RBI) has revised its rules for investmentsbyforeignportfolio investors (FPIs) in Indian bonds, including reduction of residual maturity, withdrawal of the auction mechanism and revision of the cap on aggregate FPI investments in a single security.The newmeasures will boost foreign fund flows into Indian debt and cool off the borrowing costs at a time when yields are on an upward trajectory, having pared all gains made in the first few weeks of April. The central bank has withdrawn the minimum residual maturity required by FPIs to invest in central government securities and state development loans,subject to a condition that investment in securi- QuickPicks THE OFFICIAL FIGURE of existing start-ups in India is 20,000, but their actual number is much more than that, Union commerce and industry minister Suresh Prabhu said on Saturday, reports PTI. The current figure of young ventures in the country is “grossly understated”, he said and suggested reducing “infant mortality” rate among start-ups. He was addressing the Goa Start-Up and Innovation Day, an interactive programme organised by the Goa government. PAGE 3 15TH FINANCE COMMISSION ‘Discretion to play key role in fund allocation’ THE 15TH FINANCE Commis- siononSaturdaysoughttoallay concernsofthesouthernstates on losing out on central funds duetotheirdemographicgains, saying it will use discretion in resource allocation even though the 2011 Census data would be a reference. The commission will look into both equityas well as efficiency while coming up with its recommendations for resourceallocations,chairman NK Singh said. “What weighting will be assigned, what weighting will be chosen and what are the ingredients of thoseweighting is entirelythe discretion of the commission.And this does not The 15th Finance Commission will use discretion in resource allocation even though the 2011 Census data would be a reference Chairman NK Singh assures southern states that they will not lose out on central funds due to their demographic gains The commission will look into both equity as well as efficiency while coming up with its recommendations for resource allocations form a part of anybinding features of terms of reference,” Singh said at a seminar at BSE. Remarks come amid displeasure shown by southern leaders to the 15th FC’s terms of reference having an explicit mention about using the 2011 Census data for arriving at resource allocation as against the 1971 Census. It can be noted that led by Kerala,thesouthernstateshave been pioneers in population controlandtheresultingbetter human development indices, while the northern states, primarily the Hindu heartland, have been the laggards. Notingthatthepastcommissionhadalsousedthe2011Census,but given it a lowerweighting, Singh said the terms of referencedonotbaritfromusing thedatafrompastcensuses. Continued on Page 11 Niti predicts 7.5% growth in FY19 PRESS TRUST OF INDIA New Delhi, April 28 NITI AAYOG VICE-CHAIRMAN Rajiv Kumar expects India’s economy to grow by at least 7.5% in 2018-19 on the back ofimprovementininvestment cycle and capacity utilisation. The government should now concentrate on consolidating the reform initiatives undertaken in the last 47 months,he added.“Theeconomicenvironment is extremelypositive and optimistic. The investment cycle has certainly turned upwards.The capacity utilisation has risen to 74%. The inflation is still well under the target. Foreign Direct Investment (FDI) is increasing and I expect rate of growth to be at least7.5%in2018-19,”Kumar said.The economy is expected to grow at 6.6% in 2017-18. Aamir in lead role as water crusader Generates awareness on water conservation in drought-prone Maharashtra GEETA NAIR Pune, April 28 HEHASBEEN drawingcrowdsat cinemas across the globe, but soon actor Aamir Khan will be drawingsomecrowdsatavillage nearyou,andit'snotforafilm. Bringing the same passion with which he makes and stars in films, the actor is using his star power to change the fortunesofdrought-pronevillages of Maharashtra through his Paani Foundation,and can reel off statistics about the Maha- rashtra’s villages, talk about waterconservingtechnologies, soil conditions and the economics ofwaterlike an expert. On May 1, Khan and his team at Paani Foundation are expected to mobilise around two lakh city folks and take them across villages in 75 talukas of Maharashtra to volunteer for a day. Despite his hectic shooting schedule (his latest film, Thugs of Hindostan,is set for a November release), Khan says whenever the foundation needs him, he makes himself available. This could mean travelling hundreds of kilometres to give a pep talk to and nudge stubborn or disinterested villages 10-year bond yield (%) 7.767 8.0 7.337 7.6 7.2 6.8 THE RESERVE BANK of India Reduce ‘infant mortality’ rate among start-ups, says Prabhu PRESS TRUST OF INDIA Mumbai, April 28 READ TO LEAD PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE LEISURE Opposition raises questions on government’s move to give the monument to Dalmia Bharat, a private company, for its upkeep and maintenance Page 9 Artists in the country are attempting to bring sculptures back into the limelight Page 7 to get going. Around 116 villages from Vidarbha, Marathwada and western Maharashtra have completed water projects, of which the actor thinks 45 villages did amazingly well and around 35 have done ok. “Our experience shows that 45 days of a village doing concentratedwork has a huge impact on water availability in the next year and villages even become water surplus in some cases,”says Khan. Continued on Page 11 6.4 Jan 01, 2018 Apr 27, 2018 ties with residual maturity below one year should not exceed20%ofthetotalinvestment of that FPI in that category.So far,FPIs were required to invest in G-secs with a minimum residual maturity of three years. For corporate bonds, FPIs are permitted to invest in papers with minimum residual maturityof above oneyear. The step is likely to bring in considerable foreign fund flows into short-tenor paper— arguablyanattractivesegment for foreign investors. The central bank has also revised the cap on aggregate FPI investments in any central government security to 30% of the outstanding stock of that security from 20%. One of the noteworthy changes is the scrapping of the auction mechanism, wherein FPIswere required to purchase investment limits once the limitutilisationbreached90% of the permitted quota. “WithClearingCorporation of India Ltd (CCIL) commencing online monitoring of utilisation of G-sec limits, it has been decided to discontinue the auction mechanism with effect from June 1,2018.Utilisation of FPI limits shall be monitored online thereafter,” the RBI stated. Although FPIs only paid a negligible amount to purchase these limits,what matters here is the fact that foreign investors will not have to worry about participating in the limit auctions to accumulate limits even during times when their preference would be to wait for the release of an important economic data before making investment decisions. Continued on Page 11 Idea Q4 net loss at `1,018 crore ● In red for sixth straight quarter FE BUREAU New Delhi, April 28 ADITYA BIRLA GROUP’S Idea Cellular, which is in the final leg of the merger process with Vodafone India, on Saturday reported a net loss of `1,018 crore on a standalone basis during the January-March quarter. This is its sixth straight quarter of reporting losses, as it continues to reel under the pressure of below cost tariffs unleashed by Reliance Jio. In addition,during the current quarter,the companywas also impacted by the cut in international termination rate brought about by the Telecom Regulatory Authority of India since February. However, the operator managed to narrowits net loss to `1,018 crore from `1,352 crore during Q3 FY18,when it was impacted by a 57% cut in domestic mobile termination charge also brought about by theTrai.Lower,below-cost tariff as a result of bundled data andvoiceplans,whichhasseen most consumers move to lower packs, saw the company’s standalone revenue decline at `6,137.3 crore during the quarter,which is lower by 5.7% compared to the preceding quarter. Continued on Page 11 Idea Cellular performance VOICE DATA Volume (million mins) Usage (per customer, mins, RHS) 4,00,000 3,00,000 2,50,729 2,00,000 441 1,00,000 0 (FY18) Volume (million MB) Usage (per customer, MB, RHS) 8,18,085 8,000 800 8,80,000 3,30,364 600 6,60,000 6,000 6,065 577 2,52,822 400 4,40,000 4,000 200 2,20,000 Q1 Q2 Q3 Q4 0 0 BLENDED (ARPU, `) Q1 141 Q2 132 Q3 114 Q4 105 2,204 Q1 Q2 Q3 Q4 2,000 0
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