OPINION, P6 ECONOMY, P2 A GULATI & S SAINI Modi’s farm record has been poor, needs a quick reset INTERNATIONAL, P4 SUNIL JAIN GRID BY GRID FULL DENUCLEARISATION As in the case of PDS, LPG and bank accounts, Aadhaar for phones is critical Power ministry says all inhabited villages in the country electrified N Korea's Kim to invite US experts for testing site shutdown NEW DELHI, MONDAY, APRIL 30, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 50, 132 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) 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 Continued on Page 2 27TH GST COUNCIL MEET IN AN attempt to get additional time to arrive at a successful resolution plan in order to save Adhunik Metaliks from going into liquidation, its resolution professional is likely to move the NCLT on Tuesday, reports Mithun Dasgupta in Kolkata. The resolution professional for the insolvent steel maker, Sumit Binani, is likely to seek exclusion of as many as 25 days from the mandated 270-day deadline under the corporate insolvency resolution process. PAGE 5 Two more bundles of highway projects to go under hammer AFTER ADDING $1.6 billion to its kitty, the Centre is eyeing more than $2 billion by placing two more bundles of road projects under hammer next month, reports PTI. “We will be bringing the next two tranches of highway projects for monetisation under TOT (toll, operate and transfer) in May,” NHAI chairman Deepak Kumar said, adding about 18 to 20 highway projects will be auctioned under TOT next month in two tranches that are expected to fetch over $2 billion. PAGE 2 Cisco, IBM among tech giants keen to set up Smart City centres GLOBALTECHNOLOGY giants, including Cisco, IBM and Bosch, are showing keen interest to participate in setting up of smart city centres or integrated command and control system under the Smart City Mission, reports PTI. According to a senior housing and urban affairs ministry official, HP and Siemens are working to set up such a centre in Bhopal, while Bosch, Cisco, Efkon and Rolta are participating in the development of a 'smart' centre in Varanasi. PAGE 3 ■ Proposal for the govt to have majority stake in GST Network ALTERNATIVE AVENUES Traffic on Bandra-Worli sea link falls 13% in 2017-18 First fall in 5 years, with the average daily number of vehicles that used the road at 32,312 Traffic -13% (Daily avg) FY16 FY15 FY17 FY18 Toll collection (` cr) ROUHAN SHARMA Mumbai, April 29 89.7 113.8 FY15 FY16 *till December TRAFFIC ON MUMBAI'S Bandra-Worli sea link fell 13% in 2017-18, the first fall in five years, with the average daily number of vehicles that used the road at 32,312.This is just a third of the original estimate of 1,00,000 vehicles daily and could leave revenues for the year stagnant. Toll revenues for the nine months to December 2018 came in at `85 crore compared with 112 85 FY17 FY18* Profits (` cr) 6.2 15.8 11.7 FY15 FY16 FY17 `112 crore in 2016-17, data from MEP Infrastructure shows.The one-waycharge for passenger vehicles was raised to `70 from `60 on April 1, This holiday season air travel will be light on your pocket Under a new model approved by a group of ministers earlier, taxpayer won’t have to file returns; the IT system will produce monthly returns based on supply data uploaded and inward supplies accepted. Continued on Page 2 5,204 Change (%) 5,893 WITH THE SUMMER vacation just a few weeks away, airfares on most routes are down compared to last year owing to capacity expansion by major carriers. The fares on top five routes—Delhi-Mumbai,DelhiBengaluru, Bengaluru-Mumbai, Delhi-Hyderabad and Delhi-Kolkata—aredownbyup to 12%, data sourced from onlinetravelbookingcompany Yatra.com suggests. Ifyouareplanningaholiday between May 15 and June 30 and booking a flight now, the average round trip fare on the Mumbai-Bengaluru route 2018 2017 6,520 (`) 6,651 ARUN NAYAL New Delhi, April 29 6,192 new IT model for tax payment, credit disbursement and compliance monitoring 5,662 ■ Council is keen on Time ripe for cutting auto fuel taxes: Niti Aayog’s Kumar 7,215 on sugar to create a fund that will help mills clear cane dues mid-2016tohitarecord10.54 million barrels per day (bpd) for the week ended April 13. Fueled by the shale boom, US oil production exceeded the crucial10-millionbpdmarkin November last year,which was the highest in at least 47years. This pace of crude oil production also crossed that of Saudi Arabia, leaving the US behind only Russia in terms of total crude production. Having crashed to an averageof$43abarrelin2016from as much as $94 in 2012, the West Texas crude oil price has againinchedupto$63in2018. Continued on Page 2 Continued on Page 2 8.5 8.5 2 11.7 DEL-BOMDEL DEL-BLRDEL DEL-HYDDEL DEL-CCUDEL DEL-BLRBOM Travel period May 15-June 30 would cost around `5,204, down 11.7% from `5,893 a year ago. The busiest DelhiMumbai route return fares are hovering around `6,686 com- The rise, fall and the rise of gum (Exports in $ million) 4,800 4,000 3,200 2,400 1,600 800 0 2009-10 ‘10-11 ‘11-12 ‘12-13 ‘13-14 ‘14-15 ‘15-16 ‘16-17 ‘17-18 Source: DGCIS; commerce ministry export item in 2012-13, earningalmost$4billioninforeign exchange. Then oil prices started to drop, so did rig countsintheUS.Thefortuneof millions of farmers growing guar seed began to reverse, as gum exports collapsed to just $467 million by2016-17. That is changing again, with a rise in oil prices since last year. Having crashed for fouryears in a row,India’s guar gumexportsturnedthecorner with a near40% jump to $647 million in 2017-18,according to the latest official data (see thechart).Withglobalcrudeoil prices expected to remain elevated (thanks to an OPEC-led dealtorestrictproduction)and US shale oil production rising at a fast pace in recent months, guar gum exports will likely touch $1 billion in 2018-19, said an official source. US crude production has climbed by a quarter since PRASANTA SAHU New Delhi, April 29 THE GOVERNMENTMAYhave remained non-committal on the demand for a cut in excise duties on petrol and diesel despite the retail prices of the twofuelsskyrocketing,butNiti Aayog vice-chairman Rajiv Kumar believes the time is apt fortax relief to the consumers. “When petroleum product prices are rising so much, I think a fiscal relief is required now.But,it (the cost of tax cut) should be shared between the Centre and states,”Kumar told FE in an interview. Fuel is a heavily taxed item in the country — for instance, central excise duty and state VAT (sales tax) alone account for 47% and 38%, respectively, of the retail prices of petrol and diesel in Delhi; other levies like royalty and cess on crude and local levies like octroi also inflate the final prices to the consumer. Kumar cautioned of a possible adverse impact of high fuel prices on inflation and the economy. Also, according to him, among the three schemes proposed for assured minimum support prices for 23 agriculture crops at 150% of the cost of production,onlythe private participation model would be sustainable. 9 Source: Yatra.com pared to `7,348 for the MayJune, down by about 9% if one books in the lastweek ofApril. Continued on Page 2 As oil rises, guar gum exporters hope to ride shale boom, again GUAR GUM,ANextractofguar seeds, was used primarily as just a stabilising agent in ice creamsandpersonalcareproducts a decade ago. Then the shale boom took place and giant US corporations like Halliburton and Schlumberger gobbled it up in massive volumes to exploit its value as a thickening agent,to be used in the hydraulic fracturing process for extracting oil and gasfromoilshale.Exportprices jumped more than eight times inonlyfouryearsandguargum emergedasIndia’slargestfarm Continued on Page 2 ● HIGH EXCISE DUTY RISE OF THE COMMODITY BANIKINKAR PATTANAYAK New Delhi, April 29 2018. For the return journey the charge is now `105 up from `90 earlier. ● SUMMER AIRFARES ■ Imposition of a cess 647 Adhunik Metaliks RP likely to move NCLT for additional time system that will make compliance easy 467 QuickPicks ■ Adoption of simpler 553 The best scenario for a retail investor’s participation in public issue of bonds is if he can match the tenure of the bond with his cash flow requirements ■ Personal Finance, P9 AS IT MEETS on May 4 via video conferencing, the Goods and ServicesTax Council will have many items on the agenda, including adoption of a simplified system, which will make compliance easy, without compromising on revenue for the government. It will also consider a proposal for the government to have majority stake in GST Network, the IT backbone for the newtax,and imposition of a cess on sugarto create a fund that will help mills clear cane dues owed to farmers. Sources said the Council is keen on approving the new IT model for tax payment, credit disbursement and compliance monitoring (via a semi-automatic invoices-matching). A durable system that addresses the concerns of both the government and taxpayers has been hanging fire since September last year, when the Council had effectively suspended the original system. While the taxpayers are currently using the interim summary return to discharge their tax liabilities, the system lacks anti-evasion features. TALKING POINTS 1,552 Public issue of bonds: How retail investors can buy SUMIT JHA New Delhi, April 29 1,980 Bikram Bedi, head of India region, Amazon Internet Services says firms are now deploying new apps to the cloud by default and want to migrate their existing apps as quickly as possible ■ EFE, P8 Simplified system to top agenda 3,919 The question is how fast firms can move to the cloud 3,355 Special Features PTI 32,312 343.1 pet coke — continue to hurt cement manufacturers. At ACC, for instance, operating costs increased y-o-y. If the companymanaged to post betterebitda margins — up 90 basis points y-o-y to 11.9% — this was thanks to better realisations which rose 5.8% y-oy,smalleroverheads and lower employee expenses. Pilgrims gather as the portals to the Kedarnath shrine open in Uttarakhand's Rudraprayag district on Sunday 7,880 the back of a ramp up of acquired capacities and a favourable base effect. Nonetheless,adjusting for the new capacities the liketo-like growth would have been a reasonably good 10%, compared with a two-year compounded growth of 6%, indicating a steady increase in demand. However,higher raw material costs — especially those of Source: Capitaline The doors 6,686 Sample of 101 companies (excluding banks & financials) Q1 Q2 Q3 Q4 FY18 DAYS AFTER FITCH Ratings denied India a rating upgrade for the 12th year in a row, the government said the country “deserves” an upgrade on the strength of “major structural and fundamental reforms” undertaken. Economic affairs secretary Subhash Chandra Garg said Fitch’s action did not come as a surprise as the rating agency had in discussions earlier indicateditsfocusonthelevelofthe government debt even though it had a favourable view of India’s economy. “We truly believe, we honestly believe India deserves an upgrade.The performance,macroeconomics parameters everything has stabilised,” he said. Thegovernment,hesaid,will continue engage with rating agencies and “try to convince” them of“achievement and real performance in the economy”. “Thekindofmajorstructural and fundamental reforms undertakeninthecountrysofar are truly global, they are really big,”hesaid,addingthattheGST transformed the indirect taxation system in the country and the Insolvency and Bankruptcy Code is transforming the way the countryresolves NPAs. Also,the Real Estate (Regulation and Development) Act has transformed the realty sector. Aadhaar has institutionalised howto dealwith people’s identity. He cited the recently promulgated legislation on dealing with economic offenders fleeing the country. “One thingIwouldliketostressisthat thekindofreformsundertaken by the government are truly phenomenalandbig,”headded. FitchhadonFridayretained India’ssovereignratingatBBB, the lowest investment grade, with a stable outlook, saying weak fiscal balances continue to constrain its ratings. 7,348 -0.2 Q1 Q2 Q3 Q4 FY18 -4.1 -221.6 Q1 Q2 Q3 Q4 FY18 166.9 468.5 190.5 8.0 11.2 30.3 16.9 12 Q1 Q2 Q3 Q4 FY18 RM to sales (bps, chg y-o-y) 646 RIL PLANS TO shut oil and gas production at its main fields in the KG-D6 block in the coming months, reports PTI. RIL begins complying with the Centre's guidelines for decommissioning facilities in the Bay of Bengal block where output has hit its lowest ever. Net profit (% chg y-o-y) 241 RIL to shut fields in KG-D6 block 9.5 WITH JUST ONE really top class performance so far — from Tata Consultancy Services — the Q4FY18 earnings season has got off to a modest start. The elevated cost of key inputs — metals,pet coke and petroleum derivatives — seem to be hurting those companies that are not able to pass on the costs to consumers.The good news is that the rural environment could be recovering. Although Mahindra & Mahindra Financial didn’t do as well as the Street had expected, loan growth, in the three months to March, at 18% year-on-year was significantly higher than the 14% y-o-y seen in Q3FY18. Sectors such as construction and real estate too may be looking up it would seem.The increase in volumes at UltraTech—up32%y-o-y—cameon OPM (bps, chg y-o-y) 9.04 EVEN AS ITS revival options are being mulled, lossmaking MTNL, in a bold move, has approached the Centre seeking allotment of 4G spectrum in two bands and offered its equity in return, reports PTI. CMD PK Purwar said the firm has written to the telecom department seeking spectrum in the 1800 and 2100 MHz bands to launch 4G services. (% chg y-o-y) 18.7 Net sales FE BUREAU Mumbai, April 29 -33.1 IN THE NEWS MTNL approaches govt for allotment of 4G spectrum PRESS TRUST OF INDIA New Delhi, April 29 37,336 Elevated cost of key inputs seem to be hurting companies that are not able to pass on the costs to consumers India deserves upgrade, says DEA secy Garg 34,202 Earnings season off to a modest start ● FITCH DENIES UPGRADE YET AGAIN 32,026 Q4FY18
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