OPINION, P8 ECONOMY, P2 PRANJUL BHANDARI Inflation will surge in FY19, cool off the year after INTERNATIONAL, P14 EDITORIAL IBC ORDINANCE A BETTER OFFER Farmers make it clear they want GM seeds even if govt wants Monsanto out Pact with builders to decide homebuyers’ secured status: Sahoo Murdoch’s 21st Century Fox raises Sky bid to beat rival Comcast KOLKATA, THURSDAY, JULY 12, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOLUME XXVII NO. 215, 16 PAGES, `6.00 (NORTH EAST STATES & ANDAMAN `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 READ TO LEAD SENSEX: 36,265.93 ▲ 26.31 NIFTY: 10,948.30 ▲ 1.05 NIKKEI 225: 21,932.21 ▼ 264.68 HANG SENG: 28,311.69 ▼ 370.56 `/$: 68.77 ▲ 0.05 `/€: 80.58 ▼ 0.03 BRENT: $77.26 ▼ $1.60 GOLD: `30,403.00 ▲ `4.00 Nagaland NHPS bids (Premium, ` per family) Company Premium Reliance 1,020 NIC 1,944 1,850 UIIC Bajaj 506 1,060 Religare Apollo 444 NIC: National Insurance UIIC: United India Insurance CHIRAG MADIA Mumbai, July 11 APOLLO MUNICH HEALTH Insurance Company has made the lowest bid for Ayushman Bharat-National Health Protection Mission (AB-NHPM) for the state of Nagaland at `444 per family. While Bajaj Allianz General Insurance was the second-lowest bidder at `506, it is likely that Apollo Munich will handle the health scheme for Nagaland. Continued on Page 2 BLOOMBERG Hong Kong/Beijing/ Washington, July 11 CHINAVOWED TO fight back againsttheTrumpadministration’s plans to impose tariffs on an additional $200 billion in Chinese goods, escalating a trade war between the world’s two biggest economies. Beijing described the latest US move as “totally unacceptable”bullying,and urged other countries to join China to protect free trade and multilateralism.China promised to lodge complaints at the World Trade Organisation but didn’t detail what its retaliatory measures would be. “China is shocked at the US action,” the commerce ministry said in a statement on its website on Wednesday. “To protectthecoreinterestsofthe nation and its people, China’s government is, as in the past, forced to retaliate.” The response came hours after the Trump administration released a proposed list of thousands of products on which it plans to impose 10% The US imports hundreds of billions of dollars more than it exports to China Exports $ billion Imports 550 500 450 400 350 300 250 200 150 100 50 0 2012 2013 2014 2015 2016 2017 Source: US Department of Commerce tariffs, ranging from vacuum cleaners and windscreen wipers to sterling silverspoons and badger hair.The US omitted some high-profile items like mobile phones. The news sent markets lower as stocks fell, the dollar gained and commodities slid. China’s yuan weakened. If the proposed tariffs go into effect after public consultationsendonAugust30,duties implemented by the administrationaimedsquarelyatChina will cover nearly half of all US imports from theAsian nation. Some members of Trump’s own Republican partyare call- Note: Data are for goods and services ing the tradewarunwisewhile American businesses and economists warn it could derail the strongest global upswing in years. Fresh US tariffs would also comeatatimewhentheTrump administration is seeking Beijing’s help reining in North Korea’s nuclear-weapons programme.Withlittlesignofcontinuedformalnegotiations,the two powers appear headed toward a protracted trade conflict that may undermine growth and shake up corporate supplychains. Continued on Page 2 WILFUL DEFAULTERS Special Feature Virtual reality debuts in offline stores in India Retailers such as Decathlon, Myntra and Adidas are taking the help of virtual reality, online kiosks and RFID tags to attract tech-savvy customers to brick-and-mortar stores ■ eFE, P13 IDBI Bank owed `5,372 crore Outstanding loans (` crore) 834.23 S Kumars Nationwide 695.50 Kingfisher Airlines 464.97 Ruchi Soya Industries 451.25 Directors of Gupta Coal India Deccan Chronicle Holdings QuickPicks Reid & Taylor (India) LPG subsidy a distortion: Aayog NITI AAYOG has suggested to the petroleum ministry that eligible beneficiaries receiving subsidy on liquefied petroleum gas (LPG) should rather be given a ‘cooking subsidy’ through direct benefit transfer (DBT), reports Saurabh Kumar in New Delhi. In a note to the ministry, the Aayog said the ‘subsidy’ attached to LPG is creating distortions in adopting cleaner forms of fuel. PAGE 2 Monthly PoS usage nears `1L cr THE MONTHLY value of debit and credit card transactions at point of sale (PoS) terminals inched closer to `1 lakh crore in May, data released by the Reserve Bank of India (RBI) showed, reports Shritama Bose in Mumbai. Card transactions worth `93,860 crore were recorded during May at PoS terminals, while the volume of such transactions was 466 million. PAGE 10 First Leasing Company Surana Industries Jain Infraprojects 269.33 260.24 250.86 190.68 159.78 Source: IDBI Bank SHAYAN GHOSH Mumbai, July 11 MORE THAN 120 wilful defaulters owe public sector lender IDBI Bank `5,372 crore as on May16,2018.Of this,the top 10 have unpaid loans of `3,717 crore oraround 70% of theamount.InDecember2017, such entities numbered 85 and owed the lender`4,154 crore. According to data from the bank, the biggest such default is by S Kumars Nationwide which owes the bank `834 crore.This is followed by Kingfisher Airlines (`696 crore), Ruchi Soya Industries (`465 crore),Gupta Coal India (`451 crore),Deccan Chronicle Holdings (`269 crore) and Reid & Taylor (India) (`260 crore), among others. Continued on Page 2 RAMNATH GOENKA LECTURE Justice Gogoi to deliver third instalment today EXPRESS NEWS SERVICE New Delhi, July 11 SUPREME COURTJUDGE Justice Ranjan Gogoi, the second most senior judge of the apex court, will deliver the Third Ramnath Goenka Memorial Lecture here on July 12. The lecture series was launchedbyTheExpressGroup inMarch2016tomark25years ofthepassingawayofRamnath Goenka, founder of The Indian Express.Thelecture,inthespirit ofthefounderandthenewspaper, is meant to deepen understanding of change and inspire debate on issues of vital contemporaryinterest. RaghuramRajan,thengov- ernor of the Reserve Bank of India, delivered the first lecture while former President Pranab Mukherjee did the honours at the second lecture in May 2017. Justice Gogoi has chosen to speakon“Thevisionofjustice”. A former judge of the GauhatiHighCourtandPunjab andHaryanaHighCourt,Gogoi cametotheapexcourtin2012. He is a key member of the Supreme Court collegium, the apexbodyinchargeofappointments to the higher judiciary. He headed the apex court benchthatorderedsettingupof separate courts for fast-tracking cases against politicians. Another bench headed by him hasbeenmonitoringtheupdating of the National Register of Citizens intended to identify illegal migrants inAssam. Speaking about child rights and rising sex abuse recently, Gogoi had said that the country’s “justice delivery system is begging for a complete overhaul”. PRESS TRUST OF INDIA New Delhi, July 11 INDIA EMERGED AS the world’s sixth largest economy in2017,surpassingFranceand likely to go past the United Kingdom, which is at the fifth position, according to an analysis of data compiled by the World Bank. In 2017, India became the sixth largest economy with a gross domestic product (GDP) of $2.59 trillion, relegating France to the seventh position. According to the data, the GDP of France stood at $2.58 trillion. The United Kingdom, which is facing Brexit blues, had a GDP of $2.62 trillion, which is about $25 billion more than that of India, the data showed. Continued on Page 2 GDP At current US$ (trillion) India France 3 2 1 0 2016 2.582 Bhamashah means higher premiums What's in a trade gap? 2.597 ● NHPM SCHEME Beijing vows to hit back, says US plan ‘unacceptable’; new US tariffs could kick in after public consultations India is 6th largest, passes France: WB 2.465 Trump adds $200 bn to China trade spat ● GDP SIZE 2.274 RATCHETING IT UP 2017 PRICE FIGHT Telecom Commission adopts Trai plan on net neutrality Ban on differential pricing stays but telcos get leeway in pricing value-added services in 3 areas FE BUREAU New Delhi, July 11 THE TELECOM COMMISSION, the highest policymaking body in the department of telecommunications(DoT),onWednesdayapprovedtherecommendationsoftheTelecomRegulatory Authority of India (Trai) with regard to net neutrality. With this, telecom operators who wereconstrainedduetotheregulator’sdifferentialpricingregulation will get some leeway in pricing their value-added servicesinthreeareas—specialised services, content delivery networksandtrafficmanagement. While the prohibition on differential data pricing will remain,which basicallymeans that whatever is available on the net cannot be differently priced by telcos for their subscribers through any exclusive tie-upswithcontentproviders, the three areas — specialised services, content delivery networks, and traffic management—willbekeptoutsidethe WHAT’S IN, WHAT’S OUT ■ Telcos cannot negotiate with a Netflix for bulk discount for their users. But there’s a way out through the intranet. A telco can buy movies from a Netflix or a Hooq or an Eros, store them on the intranet and then price these differentially ■ Data costs for subscribers can’t be waived/ lowered for movies/videos, but if these are stored on intranet, this is possible ■ Telcos can’t increase the speed of services like WhatsApp to provide better quality calls as part of a special package purviewoftheprinciplesofnet neutrality. Apart from these threeareastheearlierleewayto telecom operators to offer free content to their users via their closed communication networks (intranet) would also continue (see graphic). Thebroaderprincipleofnet neutrality,whichdisallowsany discriminatory practices on the net like throttling,choking or accelerating of select websites by telecom operators or ■ Telcos can’t lower the data prices for a Netflix or an Eros. But Netflix/Eros can buy discounted bulk data packs from telcos — or intermediaries like wallet firms — and give these to their subscribers internet service providers,will also remain in force. Continued on Page 2 ■ National telecom policy gets telecom panel nod, P3
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