OPINION, P8 COMPANIES, P6 INTEGRATION PROPOSAL EDITORIAL Unlikely that Mehta panel plan will work as well as IBC has Given PSU losses, the govt shouldn’t make sale value central to privatisation plans INTERNATIONAL, P14 1MDB PROBE Chandrasekaran-led Tata group mulls single unit for food business Former Malaysia prime minister Najib Razak arrested MUMBAI, WEDNESDAY, JULY 4, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 58 NO. 157, 18 PAGES, `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 SENSEX: 35,378.60 ▲ 114.19 NIFTY: 10,699.90 ▲ 42.60 NIKKEI 225: 21,785.54 ▼ 26.39 HANG SENG: 28,545.57 ▼ 409.54 `/$: 68.58 ▲ 0.22 `/€: 79.93 ▲ 0.10 BRENT: $78.31 ▲ $1.01 GOLD: `30,282.00 ▼ `66.00 MOBILE TELEPHONY BIDS FOR 2,000 MW Solar tariffs revert Numbers speak, and data rules to record low level Special Features Rising interest rates: How investors can benefit from it When interest rates are looking to go up, choose debt funds with shorter maturity profile like short-term funds or ultra short term funds ■ Personal Finance, P13 QuickPicks No plans to close operations at Brady House branch: PNB FRAUD-HIT PUNJAB National Bank (PNB) on Tuesday said it has no plans to close operations at its Brady House branch, the fountainhead of the `14,000-crore Nirav Modi scam, reports PTI. Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated PNB of about `14,000 crore through the issuance of fraudulent letters of undertaking (LoUs). PNB's Brady House branch in Mumbai had fraudulently issued LoUs for the group of companies belonging to Modi since March 2011. Retail operations for PNB customers continue to operate from the branch, an official said. PAGE 10 SC lambasts Centre for not uploading welfare scheme draft EXPRESSING DISPLEASURE for failing to upload the draft of a welfare scheme for building and construction workers on the labour ministry website, the Supreme Court on Tuesday asked the Union labour secretary to be personally present before it to explain why it didn’t comply with its earlier orders, reports fe Bureau in New Delhi. A bench led by justice Madan B Lokur came down heavily on the Centre for not uploading the draft of a welfare scheme on its labour ministry website, dubbing its affidavit as “absolutely false” and saying it was “making a joke” of a plan for the poor involving `30,000 crore. PAGE 2 (6th highest in the world) WIND: 34.2 GW (4th highest in the world) IN LAST 4 YEARS Renewable capacity added: 33.5 GW Solar: 19.4 GW Wind: 13 GW Small hydro: 682 MW decrease in module prices (as a result of cheaperimports from China) would lower capital costs of Indian developers by about 13%. According to sources, ACME Solar bagged a 600 MW project with the lowest tariff quote in the recent auction. Shapoorji Pallonji Infrastructure Capital quoted `2.52 per Continued on Page 2 BIDDING FOR FORTIS IHH, Manipal-TPG in, not Munjal-Burman PRESS TRUST OF INDIA New Delhi, July 3 MALAYSIA’S IHH HEALTHCARE and the Manipal-TPG combine have put in fresh binding bids forcash-strapped healthcare chain while the Munjal-Burman combine, which had earlier emerged as the preferred suitor for Fortis Healthcare, has backed out from the race. In a regulatoryfiling,Fortis Healthcare said it has fresh binding bids without specifying details. While Malaysia’s IHH Healthcare stated that it has put in binding bid,sources said Manipal-TPG combine have also put in their bid.The Munjal-Burman combine has,however,notsubmittedfreshbinding bids on the last day, a source said. “The Board of Directors of the company has received Binding Bids on July 3, 2018,” Fortis Healthcare said in a BSE filing on Tuesday. The binding bids will be 100 m downloads Jio Cinema Within videos, 58% watch Youtube & 38% Hotstar 50 m Airtel TV 50 m Wynk Music 85 m Source: Industry ket,the average time spent by a consumerontheirmobiledevice on a daily basis has jumped to 240minutesfrom190minutes. This means around four hours Project funding FE BUREAU Investments take a hit The share of new investments by the government hit a 14-year low in the quarter ended June 2018, according to CMIE data. Sharp fall in new govt projects (New projects, ` lakh crore) Government 2.06 1.33 2.24 1.38 Jun Private 2.57 1.86 1.31 Sept 2016 Dec 2.06 1.45 1.68 1.80 0.53 0.72 0.71 0.61 Sept 2017 Dec 1.19 Mar Jun 1.09 0.24 Mar Jun 2018 Marginal decline 12.5 in overall stalled 12.0 projects 11.5 11.11 (Implementation stalled, ` lakh cr) Source: CMIE 11.0 10.5 11.21 June 2016 June 2018 inadayanindividualspendson mobile phones.Not surprising, considering that in the last 18 months data prices have crashed byaround 90%. Cabinet to come out with kharif 2018 MSPs today BANIKINKAR PATTANAYAK New Delhi, July 3 A 28% HIKE in the minimum supportprice(MSP)ofcotton— tobeannouncedonWednesday — to ensure farmers get at least a 50% profit over the so-called A2+FL cost will drive up staterun Cotton Corporation of India’s (CCI) procurement to at leastafour-yearhigh,according to industryexecutives. In the past, higher MSPs nearlyinvariablypushedupprocurement by the state-run agency.Forinstance,the Centre raisedcottonMSP(mediumstaple) by a record 39% in 200809, driving up CCI’s procurement to an all-time-high of 8.9 million bales,as high rawmate- Output (Lakh bales) Procurement (Lakh bales) MSP* (% rise, y-o-y) 2008-09 ‘12-’13 38.9 28.6 ‘14-’15 ‘15-’16 1.4 1.3 *Medium staple Source: CCI; textile ministry rialpriceskeptmanymillsaway. Continued on Page 2 ■ Cane gives best returns : P2 HC stays order asking govt to extend oil contract ■ Munjal-Burman combine said not to have submitted fresh binding bids on last day PRESS TRUST OF INDIA New Delhi, July 3 ■ Binding bids to be evaluated by board in consultation with advisers Your competitor Jio has a different strategy than yours towards content. While it believes in developing customised content you have adopted the aggregator/partnership model. Is there any changeinthisapproach? Broadly Bharti will be an aggregator of content. However, we will look at maybe a few exclusive shows. THE DELHI HIGH Court on Tuesday put on hold its single judge’s order directing the Centre to extend till 2030 its production-sharing contract (PSC) with theVedanta and Oil and Natural Gas Corporation (ONGC) to produce oil from a Rajasthan block. While staying the order, a bench of justices Sanjiv Khanna and Chander Shekhar asked the Centre to “decide or process” within two months Vedanta's application for extension of the PSC under its new policy of April 2017 for such contracts. The ordercame on the Centre's appeal against the single judge’s May 31 decision in favour of Vedanta, formerly Cairn India. The government,in its plea filed through central government standing counsel Amit Mahajan,has claimed that the PSC with Vedanta will fall under the new policy.The contention has been opposed by the company. Thecourtwillhearthematter next on November 15. The single judge had held that Vedanta was entitled to extensionofitscontract,which is set to expire in 2020, for a further period of 10 years on the same terms and agreements when it was first entered into in 1995. Continued on Page 2 Continued on Page 2 Monsoon mishap Rescue work under way after a foot overbridge collapsed on to railway tracks, injuring five people, following heavy rains at Mumbai’s Andheri station on Tuesday Continued on Page 2 ● INTERVIEW: GOPAL VITTAL, MD & CEO, Bharti Airtel ‘Our focus is on partnerships for content’ EXPRESS PHOTO: PREM NATH PANDEY Key procurement years ● VEDANTA’S PLEA ■ Malaysia’s IHH Healthcare says it has put in binding bid. Manipal-TPG also said to have put in their bid evaluated by the board in consultation with its advisers, it added. As per the fresh criteria put up by the Fortis board on May 29, the potential buyer had to make a minimum investment of `1,500 crore into Fortis Healthcare bywayof preferential allotment. Continued on Page 2 ● FIBRE OPTICS LATEST TWIST IN BID BATTLE SC issues slew of directions on police reforms in country THE SUPREME Court on Tuesday passed a slew of directions on police reforms in the country and ordered all states and Union territories to not appoint any police officer as acting director general of police (DGP), reports PTI. A bench headed by Chief Justice Dipak Misra also directed all the states to send names of senior police officers to the Union Public Service Commission for being considered as probable candidates to be appointed as DGPs or police commissioners, as the case may be. Jio TV IF INDIAN TELECOM subscribers were once known to be voice hungry, today they have got an insatiable appetite to consume data and going by the trends,thisisgoingtoriseinthe days to come.Consider the statistics: Of the total around 1.13 billion mobile subscribers, around 300 million are users of smartphones who can be categorisedasbigdataconsumers.In the last oneyear,when the shift towardsdatahappenedwiththe entryof Reliance Jio in the mar- 76% of consumers use mobile data to watch videos 332 21.9 GW 7-10GB 8.4 SOLAR: RISHI RAJ & RISHI RANJAN KALA New Delhi, July 3 386 THE SECURITIES and Exchange Board of India on Tuesday enhanced the overseas investment limit of alternative investment funds and venture capital funds to $750 million from the current $500 million, reports PTI. The decision has been taken in consultation with the RBI, Sebi said in a circular. Sebi has asked AIFs and VCFs to mandatorily disclose the utilisation of the such limits within five working days of such usage on the regulator's intermediary portal. 69 GW 240 mins Avg data consumption per month per user 87 IN THE NEWS Overseas investment limit of AIFs, VCFs hiked Current renewable energy capacity: 20-30% 334 AFTER A BRIEF lull caused by fears of a rise in the cost of importedmodules,solardevelopershaveregainedtheircompetitive aggression. The latest reverse auction for 2,000 MW capacity has discovered tariff of 2.44 per unit, which matched the lowest ever rate that was found in May 2017 for Rajasthan’s Bhadla projects. An impending threat of a hefty 70% safeguard duty on solar cells and panels had pushed up the tariffs to as high as `3.54 per unit, giving credencetotheanalysts’fearsthat the lower rates would be unsustainable. The possibility of China’s export prices for photovoltaic modules plunging in the wake of a policy to slow the pace of solar capacity addition in the country and a recent regulatory decision to allow passthrough of extra costs due to duty hikes seem to have enthused the players in the sector. Icra has estimated that every 8-cent-per-watt 175 225 GW GW Avg time spent by consumers on mobile phones per day If the time spent is so substantial,obviouslyitwillshowin the data consumed. Today on average 7-10 GB of data is consumed per month by consumers, which till a year back was only 800-900 MB. Most mobile operators todayprovide bundled voice and data packs where voice is free and there’s a charge for data.The bulk of the users are in the monthly `399499 tariff packs which offer 1 GB data a day and if one exhausts that limit the speed gets slower for the remaining part of the day. Roughly 2030% subscribers reach their dailydata limit everyday. If the data consumed has grown so exponentially, it is obviousthatitisnotbeingused onlyto chat onWhatsApp.Telecom Regulatory Authority of India data show that app voice calling, which was in vogue a yearago,is nowon the decline. 22.9 FE BUREAU New Delhi, July 3 Earlier New Target Mission 300 million Subscribers who reach daily data limit of 1GB 290 USA unit, winning 250 MW; Hero SolarEnergy,Mahindra Susten and Azure Power have been awarded 250 MW, 250 MW and 600 MW, respectively, all at `2.53 per unit; Adani’s Mahoba Solarwas awarded 50 MW for `2.54 per unit. The Solar Energy Corporation of India would sign 25year power purchase agreements with the winning bidders and sell the power to electricity distribution utilities. The ceiling tariff for the auction was set at `2.93 per unit. Acquiring land, permissions and other infrastructure to connect the upcoming solar projects to the electricity grid would be the responsibility of the developer. The country’s renewable energy capacity stood at 69.6 gigawatts (GW) at the end of FY18. The target is to achieve 175GW of renewable power (including 100 GW solar and 60 GW wind) by FY22, which would require investments of $125 billion — $87.5 billion debt and the balance as equity. Recently, the government announced that the country would likelysurpass the target and could install 225 GW of green power by 2022. Thethreatofsafeguardand import duties on solar panels hadadampeningeffectonbidders for new projects,with severalstatespostponingandcancelling auctions due to muted interest from developers. No. of smartphone users 89.3 Pass-through facility and likely fall prices of Chinese PV modules enthuse investors Renewable capacity addition Plan 2022 Rates drop by 90%; average time spent on mobile device up to 240 minutes from 190 minutes With data usage exploding, the competition in the telecom landscape has moved away from tariff, which in anyway is at its lowest, to content as a majority of subscribers use mobile data to watch video. Currently, the country’s top two telecom operators Bharti Airtel and Reliance Jio are aggregating content through their various apps. While Jio has acquired stakes in some content companies in its aim to develop customised content, Bharti has so far shunned this approach. Bharti Airtel’s MD & CEO (India & South Asia) Gopal Vittal in an interview to FE’s Rishi Ranjan Kala & Rishi Raj explains the company’s The DNA of a production company is quite different and we would have to build such a DNA if we want exclusive content approach to content as well as other industry issues. Edited excerpts:
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