OPINION, P8 ECONOMY, P2 BACK ON JOB EDITORIAL Trai still wants to fix spectrum prices, not have genuine auction Rate cut merited, but RBI must infuse liquidity for interest rates to stabilise INTERNATIONAL, P14 Q2 RESULT Jaitley is set to resume work as finance minister in August Tesla burns $739.5 m in cash on way to record loss MUMBAI, FRIDAY, AUGUST 3, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 58 NO. 183, 24 PAGES, `7.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 37,165.16 ▼ 356.46 NIFTY: 11,244.70 ▼ 101.50 NIKKEI 225: 22,512.53 ▼ 234.17 HANG SENG: 27,714.56 ▼ 626.18 `/$: 68.71 ▼ 0.28 `/€: 79.81 ▲ 0.14 BRENT: $72.22 ▼ $0.17 GOLD: `29,577 ▼ `87 US' TARIFF OFFENSIVE India defers plan to hit back by 45 days TIBET, CHINA TODAY A RED initiative appears in today’s edition of Financial Express. This page is an initiative of the marketing solutions team of The Indian Express Group and contains content paid for by advertisers. This page should be read as an advertisement. IN THE NEWS Swiss can give bank client data to India in tax case SWITZERLAND'S HIGHEST COURT has allowed tax authorities to turn over bank account details of two Indian citizens, reports Reuters. The two had fought the release on the grounds that India's request for assistance in a tax-dodging probe arose from stolen bank data. The case involved information leaked by a whistleblower who worked for HSBC's Swiss private bank and in 2008 disclosed details on thousands of clients he suspected were using accounts to evade tax. Decision on Washington’s request, bilateral trade package in the works AGGRESSION TONED DOWN FE BUREAU New Delhi, August 2 India's proposed retaliation against 29 US goods if talks fail INDIAISSETtodeferitsplanfor retaliation against the American move to impose an extra 25%tariffonsteeland10%on aluminium supplies from this countryby45daysfromAugust 4, upon a request by the US, sources told FE. New Delhi had proposedtoslapretaliatorytariffs worth $235 million on 29 American goods, ranging from almonds to apples. The move would substantiallyde-escalateatariffwarand indicatesthatNewDelhiiswilling to engage Washington further for a meaningful outcome to the ongoing bilateral trade negotiations. It also indicates thatIndiaishopefulofgettinga waiver from the extra tariff levied by the Trump administration on metal supplies from selectcountries,includingIndia. India's surplus with US shrinking $241 million* US is estimated to rake in due to extra tariff on Indian steel, aluminium $22.9 billion India's goods trade surplus with US in 2017, down 6% from a year before $235 million* $8.53 billion $122 million* India to mop up from a 20% extra levy on US almond, top item for retaliation *Annual estimate based on supplies in 2017 India's imports from US in Q1FY19, up 38% from a year before, while exports grew only 11.7% Source: Ministry of commerce Thecommerceministryhas asked the revenue department to amend the latter’s June notification on proposed extra duties on US products suitably, a senior official said.Analysts said since both the countries will hold the so-called 2+2 strategic and defence dialogue inSeptember,itmakessensefor India towait until then. Sources said Washington wanted India to defer the plan, at least until the talks between the two sides on a mutuallyagreeable trade package are over. New Delhi has already asked for a waiver from the additional duty on the metals. The US has indicated that it will consider an exemption to India, provided New Delhi offersanacceptableproposalto lower the volume of its steel supplies.However,sourcessaid the industry is unwilling to accede to such a demand, sayingsuppliesarealreadylimited by high counter-veiling and otherdutiesimposedbytheUS. Continued on Page 2 US seeks SC reversal of order on IFC PRESS TRUST OF INDIA Washington, August 2 THETRUMPADMINISTRATION hasurgedtheSupremeCourtto reverse a lower court order on theTataMundraPowerPlantin Gujarat funded by a financial wingoftheWorldBank,arguing thattheUS-basedInternational Finance Corporation (IFC) enjoys an absolute immunity. Bydoingso,theUSsupports the lawsuit filed against IFC by Budha Ismail and several other fishermen from Gujarat allegingthatthecoal-firedplanthas resultedinwidespreadenvironmental damage. Continued on Page 2 AMRAPALI CASE QuickPicks Gold demand drops 7.6% in June quarter on weak rupee GOLD DEMAND in India, the second-largest consumer, dropped almost 7.6% in April-June to 187.2 tonnes, causing global demand to fall 4% during the quarter, the WGC said on Thursday, fe Bureau in New Delhi. WGC managing director (India) Somasundaram PR said the rupee’s depreciation, which drove up domestic prices of the precious metal by 8% in the June quarter despite a 5.5% fall globally, and slow purchases during the ‘Adhik Maas’ dented domestic demand. PAGE 18 ONGC net jumps 58% in Q1 despite dip in oil production ONGC ON Thursday reported a 58% jump in its net profit to `6,144 crore for the first quarter of FY19 compared with `3,885 crore a year ago, driven by higher realisation for its produce, reports fe Bureau in New Delhi. Revenue from operations rose 42% to `27,213 crore from `19,073 crore a year ago. The state-run explorer's revenue and profits rose despite a fall in oil production to 6.217 mt from 6.444 mt a year ago. PAGE 6 Cognizant posts 12% decline in Q2 profit on forex loss NASDAQ-LISTED IT services major Cognizant on Thursday reported a 12% quarter-on-quarter decline to $456 million in its net profit for the second quarter ended June 30, 2018, reports fe Bureau in Bengaluru. The decline in profit was primarily due to the forex loss of $80 million during the quarter. The company said the initial funding of the Cognizant US Foundation also impacted the bottom line. PAGE 6 SC to NBCC: Ready a plan in 30 days to complete projects FE BUREAU New Delhi, August 2 IN A BIG relief to Amrapali homebuyers, the Supreme Court on Thursday asked the state-run National BuildingsConstructionCorporation (NBCC) to undertake all the unfinished housing projects of the group and submit a concrete proposal and a timeframewithin 30 days on howit will complete them. This could benefit 42,000 stranded homebuyers who are yet to get possession of their flats despite paying around 90%of the amount. THE ORDER ■ Amrapali auditors to examine accounts of all 40 group companies ■ Intimate banks about its order freezing all the group’s bank accounts The Supreme Court also took note of the diversion of `2,765 crore of homebuyers’ money by the Amrapali group for other purposes. Continued on Page 2 NBCC to soon develop affordable housing projects on sick PSU land IN A BOOST to the Centre’s “HousingforAll”by2022,NBCC will soon develop affordable housingprojectsonthelandsof sickpublicsectorundertakings, reports Surbhi Prasad in New Delhi. Currently, NBCC is the land management agency of 10 central public sector enterprises.PAGE 6 MARKET VALUATION iRule: Apple becomes first trillion-dollar firm REUTERS San Francisco, August 2 APPLE BECAME THE first $1trillion publiclylisted US company on Thursday, crowning a decade-long rise fueled by its ubiquitous iPhone that transformed it from a niche player in personal computers intoaglobalpowerhousespanning entertainment and communications. The tech company’s stock jumped 2.8% to as high as $207.05, bringing its gain to about 9% since Tuesdaywhen it reported June-quarter results above expectations and said it bought back $20 billion of its own shares.Apple’s stock market value is greater than the combined capitalisation of Exxon Mobil, Procter & Gamble and AT&T.It now accounts for 4% of the S&P 500. The Silicon Valleystalwart’s stock has surged more than 50,000% since its $ 1980 initial public offering, dwarfingtheS&P500’sapproximately 2,000% increase duringthesamealmostfour decades. Started in the garage of co-founder Steve Jobs in 1976,it has pushed its revenue beyond the economic outputsofPortugal,New Zealand, among others. Along the way,it has changed how consumers connect with T oneanotherandhowbusinesses conduct dailycommerce. One of three founders,Jobs was driven out of Apple in the mid-1980s, only to return a decade later and rescue the computer company from near bankruptcy. He launched the iPhone in 2007, dropping “Computer” from Apple’s name and supercharging the cellphone industry, catching Microsoft, Intel, Samsung Electronics and Nokia off guard. Continued on Page 2 ● STRESSED POWER ASSETS Is relief possible, HC asks RBI FE BUREAU New Delhi, August 2 THE ALLAHABAD HIGH Court on Thursday asked the Reserve Bank of India whether it could relax its February 12 circular mandating 1-day default trigger for resolution of stressed assets,exclusivelyforthepower projects.While the RBI counsel couldnotgiveanycommitment straightaway,thecourttoldhim to file a response by August 9, when it next hears the case.The circular had raised chances of insolvency proceeding being invokedagainst34stressedprojects byas earlyas September. In a submission to the court,thegovernmentislearnt to have cited the ‘uniqueness’ of the sector and the ‘usual delays’in payment by discoms and argued that initiation of the resolution process could waittillatleast90-daydefault. As for the assets identified under the Samadhan scheme (11 projects with combined capacity of 12,460 MW), the governmentaskedforanextension of the reference date (for designing a resolution plan within180days)fromMarch1, 2018,to December31,2018. The power ministry also argued that pushing the assets in the sector for resolution under the Insolvency and Bankruptcy Code “in a hurry” mightjeopardise the country’s energysecurityandforceliquidationoftheseassetsforafraction of their costs, causing huge losses to the banks. Continued on Page 2 RJIO-SBI TIE-UP Now watch a movie, or go shopping while banking FE BUREAU Mumbai, August 2 INDIA’S MOST PROFITABLE telecom company, with the country’s largest 4G customer base,hastiedupwithitslargest bank,paving thewayforcreating India’s biggest digital bank with shopping and entertainment thrown in. While SBI has over 42 crore customers, it has just 2.5 million on its online app YONO (You Only Need One app); all of RJio’s23crorecustomersareon its MyJio appwhichwill nowbe seamlessly integrated with YONO. Both SBI and RJio are already partners in the Jio Payments Bank — SBI owns 30%, RJio70%—andthenewcollaborationwillgiveRJioaleg-upin the financial services segment as well since cross-selling of Food delivery India's biggest bank India's 3rd largest telco 42.4 cr customers 23 cr customers 2.5 mn on Yono 23 cr on MyJio productswill nowbe possible. Thenewcollaborationgives SBI the ability to increase its online reach many times over while giving its customers FE BUREAU access to Jio’s music and movie libraries, even better deals for clients shopping at Reliance Retail outlets; for RJio, its customers get access to a full-service bank and its facilities,better deals on its services, including the JioPhone. With SBI’s YONO app getting synergised with MyJio customers having SBI account and a Jio connection,userswill get a hostof services and offers like reward points and special schemes to buyJio phones,etc. For instance, Jio Prime will offer exclusive deals from Reliance Retail, Jio, partner brands and merchants. Further, there will be an integration between SBI Rewardz, an existing loyalty programme from SBI,and Jio Prime. Continued on Page 2 Special Feature Swiggy gets more on its plate Food-tech firm Swiggy on Thursday acquired Mumbai-based on-demand delivery platform Scootsy for `50 crore. Number of orders growing Major players 15% q-o-q Average delivery time: Average daily order (in lakh) 4.5 2 2016 Currently 20 2020P 42 mins Source: RedSeer/industry ‘LEGO wants to go mass’ Amit Kararia of LEGO shares that the company aims to double its value every three years and outpace the overall toy industry growth in India, which is at 10% currently ■ BrandWagon, P13
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