OPINION, P8 ECONOMY, P2 PROJECT COMPLETION Isro’s attempt to get more private partners gets a boost In polarised times, the Pranab-RSS meet signals even rivals must keep talks going EXPANSION BOOST IBC ordinance to further formalise realty, says Jaitley EDITORIAL INTERNATIONAL, P14 Jack Ma’s Ant Financial raises $14 bn in largestever single fundraising MUMBAI, SATURDAY, JUNE 9, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 380, 16 PAGES, `10.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 35,443.67 ▼ 19.41 NIFTY: 10,767.65 ▼ 0.70 NIKKEI 225: 22,694.50 ▼ 128.76 HANG SENG: 30,958.21 ▼ 554.42 `/$: 67.51 ▼ 0.38 `/€: 79.28 ▲ 0.04 BRENT: $76.69 ▼ $0.63 GOLD: `31,027.00 ▲ `337.00 S African police raid BoB offices AN ELITE South Africa police unit raided offices of India's Bank of Baroda on Friday and seized documents as part of an investigation into state corruption under former president Jacob Zuma, a police spokesman said, reports Reuters. Bank of Baroda, which is winding down its operations in South Africa, was thrust into the spotlight two years ago when it started working with the Guptas, a family of Indianborn businessmen who are at the centre of an influencepeddling scandal surrounding Zuma. FE BUREAU Mumbai, June 8 THEYIELD ON the benchmark bond soared past 8% in intradaytradeonFridaybeforeclosing at 7.94% even as the rupee weakened to 67.51 against the dollar, losing 35 paise over Thursday’s closing. At one point during the day, the Indian currency had dropped to a low of 67.78 against the greenback. Traders are apprehensive rising crude oil prices would widen both the trade and fiscal deficits. The yield had last crossed 8%inintra-daytradeononMay 8, 2015, when it touched 8.006%; on Friday it hit 8.033%. Ananth Narayan, professor (finance), SPJIMR, pointed out emerging market currencies had weakened overnight, which impacted the rupee in early trade.“The rupee continued toweaken through the day on the back customer demand for dollars, until likely RBI (Reserve Bank of India) intervention arrested the decline,” Narayan said. He added that the rupee continues to face the pressure of a rising current account deficit and uncertain capitalflows,andnowdepends 10-year bond yield (%) 8.150 8.061 7.947 7.625 7.100 6.575 6.050 Dec 1, ‘14 `/$ 63.00 64.50 Jun 8, ‘18 (inverted scale) 65.01 67.51 66.00 67.50 69.00 Apr 3, ‘18 Jun 8, ‘18 on the RBI forsupport.Foreign portfolio investors (FPIs) have been sellers in both the bond and equity markets; in June so far, bonds worth $71 million have been offloaded on top of sales of $2.6 billion in May. FPIs have taken risk off the table in the equities market too, having sold shares worth $1.4 billion in May and $411 million in June so far. Yields retreated from highs as traders probably rushed to cover the short positions built after the central bank’s rate hike, Bloomberg reported citing PNB Gilts.The agency said the move was also helped by speculation the government may take some measures to support the market. “It seems like a lot of people were waiting for the yield to touch 8% to buy,” said Vijay Sharma, executive vice-president for fixed income at PNB Gilts in New Delhi.“It doesn’t look like it’s going to be a longlasting rally, because even though current levels are attractive, huge local and global uncertainties make it difficult to take a call onwhere the yield will peak.” Nonetheless,with the centralbankhavingraiseditsinflation forecast for 2018-19, banks are reluctant buyers of sovereign debt.The bond marketshavebeenrattledfornearly sixmonthsnow—theyieldhas now jumped nearly150 basis points between August and now— on fears of inflation and further tightening by the RBI. Thehugemark-tomarketlosses sustained by banks, who are biggest holders of gilts, as a result of the rising yields has furtherspooked them. Experts said the late evening rally on Friday was unlikely to sustain too long unlesstherewasclearevidence crudeoilpriceswouldcomeoff substantially. Continued on Page 2 DIALLING DOWN Special Feature Artificial Intelligence will improve medical treatments AI might make medicine more specific, by being able to draw distinctions that elude human observers, though this will need close human supervision in the initial years ■ Science & Tech, P13 QuickPicks IMD predicts heavy rainfall for parts of west coast AS THE monsoon continued to advance from Kerala to Maharashtra, the India Meteorological Department on Friday again alerted residents on India's west coast about the possibility of "extremely heavy rainfall" in parts of the region during the next two-three days, reports PTI. The IMD said the conditions are favourable for further advance of the monsoon into the central Arabian Sea, Maharashtra, Chhattisgarh, Odisha and the remaining parts of coastal Andhra Pradesh during the next 24 hours. PAGE 12 Council could discuss bringing natural gas under GST THE GOODS AND Services Tax (GST) Council could consider bringing natural gas within the purview of the GST in its next meeting, an official said on Friday, reports PTI. GST Council joint secretary Dheeraj Rastogi said aviation turbine fuel would be another petroleum product that could also be brought within the GST ambit, among five petroleum products. The inclusion of natural gas on an experimental basis would be put before the GST Council in its forthcoming meeting, a PHD Chamber statement quoted Rastogi as saying. PAGE 12 Arbitration award: US court rejects Hardy Exploration’s claim IN A boost to the Indian government, the US District Court for Columbia has rejected a claim of an oil and gas firm for the enforcement of a `600crore international arbitration award in its favour, reports Indu Bhan in New Delhi. Rejecting Hardy Exploration and Production (India)'s petition, the judge said this infringement on India’s national sovereignty would contravene the US’ public policy interest in respecting the territorial integrity of other nations to control the extraction and processing of natural resources within their sovereign territories. PAGE 2 Apple to ship 20% fewer iPhones REUTERS June 8 APPLE EXPECTS TO ship 80 million new model iPhones this year, down 20% from what it had planned at the same time last year,the Nikkei reported on Friday, citing industry sources. The California-based firm has asked its parts suppliers to make about 20% fewer components for the three new iPhones it plans to launch in the second half of 2018, compared to lastyear’s plans forits iPhoneXand iPhone 8 models, the paper reported. Thereportaddstoconcerns of weakening smartphone sales after years of scorching growth as sales stagnate in key growth markets such as China and users upgrade their phones less often. It knocked 2% off Apple’s shares and send stocks of its suppliers around the world as much as 6% lower, weighing on the US and other stock markets. “Apple is quite conservative NOT IN APPLE PIE ORDER ■ Apple expects to ship 80 million new model iPhones this year: Nikkei Finance minister Piyush Goyal, seen here with SBI chairman Rajnish Kumar, PNB non-executive chairman Sunil Mehta and others, interacts with the media after a bankers’ meeting in Mumbai’s Nariman Point on Friday EXPRESS PHOTO BY PRASHANT NADKAR RESOLUTION OF BAD LOANS ‘ARC/AMC norms in two weeks’ Move aimed at salvaging large stressed assets where multiple banks have exposure FE BUREAU Mumbai, June 8 THE GOVERNMENT ON Friday revisited the idea of setting up a large public-sector asset reconstruction company (ARC), sort of a ‘big bad bank’, as it vowed to persist with efforts to fast-track the reso- lution of stressed assets in the banking system and bolster public-sector banks’ (PSBs) impaired capacity to ease credit flows, especially to the small and medium enterprises. Addressing the media aftera long brainstorming session with heads of PSBs here, Piyush Goyal,who holds addi- tional charge of the finance ministry, said a committee under Sunil Mehta,non-executive chairman of Punjab National Bank,has been asked to appraise the desirability of an ARC and/or an asset management company (AMC) and frame the possible modalities for them in two weeks. Goyal also said that all vacant positions of PSB heads would be filled in the next 30 days. At present, five PSBs — Dena Bank, Punjab & REPORT CARD FY18 FDI record $62 bn: Prabhu FE BUREAU New Delhi, June 8 FOUR YEARS: UPA vs NDA THE GOVERNMENTONFriday said gross foreign direct investment (FDI) inflows into India touched a record $62 billion in thelastfiscal,raisingthelevelof such investments in the four yearsoftheNDAregimeto$223 billion, against $152 billion in the previous fouryears. Listing the achievements over the past four years, commerce and industry minister SureshPrabhusaidFDIinflows have touched an all-time high, goods exports have reversed a declineandanewindustrypolicy to replace the one formulatedwaybackin1991isalmost ready. The industrial policy aims to help double the economy'ssizeto$5trillioninseven to eight years.The FDI inflows in 2017-18 have been greatly aided by Petrochemical Complex, owned by Rosneftegaz, acquiring a 49% stake of Essar Oil for$13 billion. ‘Will clear misgivings on export subsidy’ Prabhu, who is visiting the ■ Firm asks parts suppliers to make 20% fewer components for three new iPhones planned for second half of 2018 FDI inflows scale record high Gross FDI ($ bn) 223 152 FY11-14 FY15-18 Note: Gross FDI includes FDI in equity, equity capital of unincorporated bodies, re-invested earnings and other capital No fuel surcharge, may revise fares: AI CMD ARUN NAYAL New Delhi, June 8 169.7 WITH RISING FUEL costs, state-owned, loss-making Air India will not levy a fuel surcharge, which was added by IndiGo Airlines recently, but surely look at revising fares. Air India chairman and managing director Pradeep Singh Kharola told FE that whiletheintroductionofafuel surcharge is ruled out, an 400 300 160 200 100 Continued on Page 2 Continued on Page 2 ● FLIGHT PLAN FE BUREAU Share price on BSE (`) 500 Jul 8, 2015 FE BUREAU Mumbai, June 8 Continued on Page 2 Goods Goods trade exports deficit Commerce & industry minister US to hold talks with US trade representative Robert E Lighthizer next week, said India’s subsidy regime for exporters is compliant with World Trade Organisation NCLT gives Ruchi Soya another 90 days (WTO) rules and that he is open to engaging any country that has any misgivings on such sops. FY11-14 FY15-18 —Suresh Prabhu, The Manpasand Beverages scrip slid below its issue price on Friday, hitting `157.20 in intra-day trade on the BSE against the issue price of `160 in terms of placing new orders for upcoming iPhones this year,” one of the four sources, who is in the supplychain,told the Nikkei Asian Review.“For the three new models specifically, the total planned capacity could be up to 20% fewer than last year's orders.” Continued on Page 2 THE MUMBAI BENCH of the NationalCompanyLawTribunal (NCLT) on Friday granted an additional90daystoRuchiSoya tocompletethecorporateinsolvency resolution process under the Insolvency and Bankruptcy Code (IBC). The initial 180-day period ends on June 18. Ruchi was admitted bythe NCLTforinsolvencyproceedinginDecember, onapleabyStandardChartered Bank and DBS Bank.It is one of the 12 firms mentioned in the Reserve Bank of India’s second list of defaulters. Sources close to the matter confirmed that the lenders are seriously considering using the Swiss challenge method to finaliseabuyerforthebankrupt company. On US challenging India's export subsidy Our export support regime is not violating any of the WTO rules. We are also working to make sure that there is a proper clarity on this. Not really Manpasand concerns of weakening smartphone sales as sales stagnate in key markets Exports down, but so is trade deficit ($ bn) Losing stock ■ Report adds to Sind Bank, IDBI Bank, Allahabad Bank and Andhra Bank — do not have a chief executive officer. The Economic Survey for 2016-17 had made a case for a centralised Public-sector Asset Rehabilitation Agency (PARA) that would purchase stressed loans (especially the largest and most difficult ones) from banks and then work them out. ● IBC PROCESS 629 INDIA MUST address the ongoing crisis in its banking sector to support investment and an inclusive growth agenda, the International Monetary Fund (IMF) said on Friday, reports PTI. IMF spokesman Gerry Rice said Indian authorities have made progress in addressing the stock of NPAs and were taking further steps to deal with the flow problem. Last crossed 8% in intra-day trade in May 2015; rupee too falls on dollar demand, uncertain capital flows 522 IMF on India bank sector crisis Bond yield past 8% first time in 3 years 1,152 THE GOVERNMENT on Friday said it has identified 2,25,910 companies to be struck off from the Register of Companies on account of non-filing of financial statements for FY16 and FY17, reports fe Bureau in New Delhi. Additionally, over 7,000 limited liability partnerships also face this fate for non-compliance. MARKET JITTERS 1,171 IN THE NEWS Over 2.25L firms may be struck off register Jun 8, 2018 Pradeep Singh Kharola, Air India CMD adjustment of fares was very much on the cards. Continued on Page 2 FLIP-FLOP Haryana seeks share of athletes’ earnings, withdraws after flak PRESS TRUST OF INDIA Chandigarh, June 8 IT WAS A U-turn that would have given a champion gymnast whiplash. The Haryana government on Fridaycourted controversy when it asked sportspersons employed by it to deposit one-third of their earningsfromcommercialand professional commitments to thestatesportscouncilbutput the notification on hold after MEDAL MUDDLE Haryana had 22 athletes who won medals at the Gold Coast Common-wealth Games. Listed are the gold medallists WRESTLING | Bajrang | Punia drawing sharp criticism from elite athletes. “Ihaveaskedfortherelevant file of Sports Department to be | Sumit | Malik BOXING | Vinesh | Phogat | Vikas | Krishan shown to me & the notification dated April 30th to be put on hold till further orders,” chief ministerMLKhattartweeted. | Gaurav | Solanki SHOOTING | Anish | | Manu | Bhanwala Bhaker “We are proud of the immense contribution by our sportsperson&Iassurethemof ajustconsiderationofallissues ATHLETICS | Sanjeev | Rajput | Neeraj | Chopra affecting them,”he added. His intervention came after athletes reacted sharply to the notification issued by principal secretary(sports and youth department), Ashok Khemka. “One-third of the income earned by the sportsperson from professional sports or commercial endorsements will be deposited with the Haryana State Sports Council. The money shall be used for the development of sports in the State,”it stated. Continued on Page 2
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