OPINION, P8 COMPANIES, P6 AWAITING CLEARANCE EDITORIAL E-commerce plan badly conceived, it should be scrapped Trai chief’s Aadhaar dare shows that the Aadhaar ecosystem is truly robust INTERNATIONAL, P14 GOING GOOD Oberoi’s EIH puts Trident hotel project in Navi Mumbai on hold Tim Cook-led Apple’s shares jump as value heads towards $1 trn NEW DELHI, THURSDAY, AUGUST 2, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 131, 22 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 37,521.62 ▼ 84.96 NIFTY: 11,346.20 ▼ 10.30 NIKKEI 225: 22,746.70 ▲ 192.98 HANG SENG: 28,340.74 ▼ 242.27 `/$: 68.43 ▲ 0.12 `/€: 79.94 ▲ 0.52 BRENT: $72.70 ▼ $1.55 GOLD: `29,664.00 ▲▼ `4.00 RBI MONETARY POLICY ● AMRAPALI CASE Loans to get pricier on raised policy rate Analysts see further hikes, tighter liquidity; RBI keeps stance ‘neutral’, maintains growth, inflation outlook FE BUREAU New Delhi, August 1 Repo rate (%) 7.75 6.50 FE BUREAU Mumbai, August 1 WITH THE RESERVE BANK of India (RBI) raising the repo rate by25basispoints(bps)to6.5% on Wednesday, bank lending rates are expected to stay firm or even inch up in the months ahead.Thisisthesecondhikein the key policy rate in 2018-19 afterthe25bpsincreaseinJune. Loansrateshavebeengoing upforthepastfewmonthsnow as banks have looked to protect their margins; with deposits growing at a very modest pace Rupee ends at fresh two-week high of 68.43 Dec 18, 2013 banks have also needed to raise interestratesondeposits,especially for term deposits. State Bank of India’s (SBI) marginal cost of funds-based lending rateisnow8.25%whilethatfor Punjab National Bank is 8.6%. SBI managing director PK Gupta said there is a liquidity mismatch in the system with The main reason for changing the policy rate is to ensure that, on a durable basis, we come to and maintain our inflation target of 4%. It is important we don't drift away... THE RUPEE bounced back from early losses to end at a fresh two-week high of 68.43, up by another 11 paise against the dollar, even as the Reserve Bank of India hiked the repo rate by 25 basis points on Wednesday, reports PTI. The forex market sentiment was buoyed by the central bank maintaining its growth outlook for the economy. — URJIT PATEL RBI GOVERNOR Special Features Take the perfect selfie with Vivo Nex Android phone Vivo’s new handset at `44,990 has a good spec sheet, solid design and a stylish elevating camera for great selfies. The phone’s processor and display are top-notch too ■ Gadgets, P13 Small is big for Cisco India as it expands its SMB business The US-based networking giant has started cross-leveraging its service provider business, as part of its drive to triple its SMB client base in the country to 90,000 by 2020 ■ eFE, P13 Manufacturing sector activity moderates in July: PMI THE COUNTRY'S manufacturing sector activity moderated in July amid softer increase in output, new orders and employment, says a monthly survey, reports PTI. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) stood at 52.3 in July, down from 53.1 in June. This is the 12th consecutive month that it remained above the 50-point mark. KM Birla,YC Deveshwar made non-official directors of AI Central GST still a fifth below target FE BUREAU New Delhi, August 1 HELPED BYTHE e-waybill and gradual improvement in compliance,the goods and services tax (GST) collections are rising, albeitgradually.However,these aren’t still keeping pace with the Centre’s budget targets. The GST collection for June Average monthly mop-up for April-June 2018 at `95,000 crore July-March FY18 `90,000 crore `50,325 cr *CGST collections plus half of IGST meant for Centre Continued on Page 2 MSMEs may get GST refunds, Page 2 Cabinet call Trai spectrum price recommendations 6,568 3,399 4,651 960 1,622 821 3,285 492 700 2100 800* 2300 2500** 900# 1800 3300-3600 Pan-India price `/MHz Spectrum band (MHz) Total spectrum available for auction: 4948.55 MHz For the premium 4G spectrum though,Trai has reduced the reserve price by 43% at `6,568 crore per MHz; still, for a pan-India 5 MHz block operators would have to shell out `32,840 crore. Going by global standards FE BUREAU 7.98% Intra-day on BSE (`) 64 62.15 62 59.05 60 58 Prev. close: 56 58.85 54 Open Close HCL Intra-day on BSE (`) 69 64.90 66 63 60 57 60.70 Prev. close: 60.10 Open Close Cabinet OKs LIC's plan to acquire controlling stake in stressed IDBI Bank; Irdai and LIC board had approved plan earlier; RBI may be urged to give LIC more time to pare stakes in other banks LIC's holding in IDBI Bank now 51% LIC's stake after preferential allotment/open offer `900 cr Cabinet approves issuance of fresh equity by Hindustan Copper for expansion to be raised by the copper miner via QIP 66.13% Govt holding in HCL post-QIP, down from 76.05% now July 20 NCLAT asked the CoC to select H1 & H2 bidders July 30 Tata Steel challenged this in NCLAT by its chairperson justice SJ Mukhopadhyay, ordered that all the three companies would submit their revised thepriceof`492croreperMHz for 5G spectrum is on the highersideastheSouthKorean auctions that happened just a month ago had the price at `130 crore perMHz. Continued on Page 2 ● DAIICHI HEARING FE BUREAU New Delhi, August 1 `15,000 cr in FY19 to fund expansion of Swachh Bharat Mission shale gas/oil, CBM under existing contracts loans to fertiliser units at Gorakhpur, Sindri & Barauni bids byAugust 6 to the CoC for its approval. OBSERVING THAT “THINGS are getting out of hand”, the Delhi High Court on Wednesday asked former Ranbaxy promoters Malvinder and Shivinder Singh to be personally present before it on August 10 to explain the discrepancies in theirstatements on their assets and shareholding in Fortis Healthcare and also if they had sufficient funds to satisfy Japanese pharma major Daiichi’s `3,500 crore arbitration award against them. Justice Rajiv Shakdher asked the Singh brothers if they had sufficient funds to satisfy the award or they should declare themselves “insolvent” and “go behind bars”. “Have seen and heard enough.Whereveryou have to get it (thevalue assured) from, you get it, or you will go behind bars,” he said, adding that “you cannot take the court for a ride”. The judge also said that the brothers “will have to cough up” the award amount that they owe to Daiichi. The stern warning came after Daiichi told the bench that the value of underlying assets is gone and the number of shares reduced drastically. Continued on Page 2 Continued on Page 2 ■ Concessional financing scheme extended by another 5 years for Indian entities bidding for infrastructure projects abroad NCLAT allows rebids by all THE NATIONAL COMPANY Law Appellate Tribunal (NCLAT) on Wednesday allowed the three bidders — Tata Steel, JSW Steel and Liberty House — in the fray for the bankrupt Bhushan Power and Steel (BPSL) to submit revised bids.The appellate tribunal’s direction came in response to a petition filed by Tata Steel,which had objected to the committee of creditors’ (CoC) decision last week allowing JSW Steel to submit a revised offer. The NCLAT’s two-member bench, headed `5.06 lakh cr ■ `1,258-cr interest-free ■ Nabard to raise BHUSHAN POWER & STEEL SURYA SARATHI RAY New Delhi, August 1 Revenue receipt for government at reserve price: ■ Explorers can extract Wednesday's Cabinet decisions will aid bailout of a stressed bank, expansion of a mining PSU and production of unconventional hydrocarbons like shale gas. A leg-up to Swachh Bharat Mission as well. ■ Reports on Page 2 IDBI Bank *Pricing is for 19 circles **Pricing is for 12 circles # Pricing is for 7 circles Delhi HC issues summons to Singh brothers All in a day July 27 CoC allowed JSW Steel to submit revised offer July 31 CoC selected Tata Steel as H1 & JSW Steel as H2 bidder August 1: NCLAT's order made this selection redundant JULY NUMBERS Car sales slide on base effect, leaders Maruti, Hyundai edge lower FE BUREAUS New Delhi/Mumbai, August 1 SALESOFPASSENGERvehicles in July by the country’s top two manufacturers Maruti Suzuki India and Hyundai Motor skidded with the former seeing a decline of 0.6% comparedwith the same month last year and thelatterseeinganincremental growth of 1.1%. However, the automakerssaidthiswasdueto the recalibration done last year in the run-up to the implemen- tation of the goods and services tax(GST)andhadnothingtodo withtheunderlyingsentiments in the market and would normalise fromAugust. Last year in June manufacturers had done huge destocking as from July GST was to come into force.As a result this year in June the sales figures were abnormally high with Maruti’s figures touching a growth of 44%.Further,in July last year when GST came into effect, despatches were made in huge numbers to make up Passenger vehicles 1,53,298 152,427 (unit) July '17 July '18 % change « INDIA IS likely to receive below-normal monsoon rains in 2018, a private weather forecaster said on Wednesday, raising concerns over farm output and economic growth, reports Reuters. The monsoon is likely to see only 92% of the long-period average rainfall, down from the earlier forecast of 100%, weather agency Skymet said in a statement. PAGE 12 `40,665 cr 19% lower than FY19 budget estimate of came in at `96,483 crore,a triflemorethanthesameforMay, taking the monthly average for the current fiscal (April-June) to over `95,000 crore, compared with `90,000 crore last fiscal (July-March). The June collections consist of`15,877croreascentralGST, `22,293 crore as state GST and `49,951croreasintegratedGST — including `24,852 crore collected on imports.Additionally, collection from cess came in at `8,362 crore, the government said in a statement. Also,thecomplianceratefor June showed marginal improvement as 66 lakh eligible taxpayers filed the summary returns by the deadline comparedwith64.7lakhintheprevious month. Separately,thegovernment said `3,899 crore has been released to the states as GST compensation for the months of April and May. Despite the gradual growth month over month, the revenue collection is well below the budgetary target. THE TELECOM REGULATORY Authority of India (Trai) on Wednesday recommended the reserve price forthe next round of auctions,which is considerably lower than what was fixed forthe2016auctionsbutstillon the higher end considering the industry’s financial position. For the 5G band in 33003600 MHz where the prices have been given for the first time, at `492 crore per MHz, for a pan-India minimum block of 20 MHz operators will have to shell out `9,840 crore,which is seen as steep. « Monsoon rain forecast cut, farm output seen at risk Continued on Page 2 Continued on Page 2 FE BUREAU New Delhi, August 1 « THE GOVERNMENT on Wednesday inducted corporate bigwigs KM Birla and YC Deveshwar into the Air India board, a day after seeking Parliament's nod for supplementary grant for equity infusion into the loss-making national carrier, reports PTI. The appointments of Birla, head of an over $44-billion conglomerate, and FMCG giant ITC’s chairman Deveshwar are for 3 years. PAGE 6 loansgrowing12-13%year-onyear and deposits at a modest 8%. “With the busy season ahead,credit growth could rise to 14-15% and that would see liquidity becoming tighter.As such, banks would have to increase lending rates,” he said. In fact, with economists anticipatingfurtherhikesinthe repo rate and liquidity not expected to be abundant,lending rates could stayelevated for the next six to eight months, money market experts believe. While the bond market saw a mild rally with the yield on the benchmark ending at 7.70%,7 bps lower than Tuesday’s close, treasurers believe this was on account of the central bank’s assurance itwould keep the liquidity situation neutral instead of letting it move into a deficit. JUNE COLLECTIONS Avg monthly Central GST* collection so far this fiscal at QuickPicks Aug 1, 2018 `492 cr per MHz for 5G band is high, considering that South Korean auction had price of `130 cr per MHz « ONLINE FASHION retailer Myntra has acquired Pretr, a Mumbai-based end-toend omnichannel platform for retail, reports fe Bureau in Bengaluru. Myntra aims to forge omnichannel partnerships with brands on its platform and provide solutions to retailers for their own omnichannel journey. COMING DOWN HEAVILY on the Amrapali group for “defrauding investors” and playing “dirty games”, the Supreme Court onWednesday directed the attachment of all bank accounts and movable properties of 40 companies of the real estate group. It froze all the bank account of all directors of the 40 companies and also restrained them from selling their personal properties without the permission of the court. Taking serious note of diversion of funds by the group, a bench led by justice Arun Mishra called for details of all group companies, their bank accounts,names of auditors who handled these 40 companies and their assets since 2008 byThursday. Trai cuts reserve price but telcos not too enthused « IN THE NEWS Myntra acquires omnichannel retail platform Pretr SC orders attachment of accounts, properties SPECTRUM AUCTION 0.6 1.1 14 6 43,007 43,481 Maruti Suzuki i Hyundai 14,933 17,079 Tata Motors 21,034 19,781 M&M for June, which led to higher sales.Therefore,onahighbase, this time July sales have either dipped or remained stagnant. Just forperspective,lastyearin June Maruti’s sales growthwas only1% but in Julyitwas 21%. Marutiofficialssaidthatdue to changes last year, this year June and July figures should be seen as one where Maruti sales growthisaround17%,whichis good. “While the growth rate may look flat, one must look at the absolute volumes in July, which are very robust even by our own high standards,” Maruti’sseniorexecutivedirector (marketing and sales) RS Kalsi said, adding that the flat growthseeninJulywasprimarilyduetoahighbaseinthesame month last year. “In June this year we sold around 1.34 lakh vehicles (less than July) but the growthratewas44.5%,”hesaid, adding that if the June-July period was taken together the company’s growth would be 17% overtheyear-ago period. Continued on Page 2
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