OPINION, P8 COMPANIES, P6 INTERNATIONAL, P14 FUND REQUIREMENT TRADE DISPUTE Jet looks to raise money by pledging Goyal’s promoter shares Turkey will boycott US electronics, says President Erdogan EDITORIAL Using TPAs for Ayushman Bharat is a bad idea, drop it RBI does well to tell Centre that its faulty policies are what caused the power crisis MUMBAI, WEDNESDAY, AUGUST 15, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 58 NO. 193, 46 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: 37,852.00 ▲ 207.10 NIFTY: 11,435.10 ▲ 79.35 NIKKEI 225: 22,356.08 ▲ 498.65 HANG SENG: 27,752.93 ▼ 183.64 `/$: 69.89 ▲ 0.04 `/€: 79.71 ▼ 0.18 BRENT: $73.92 ▲ $1.31 GOLD: `29,541.00 ▼ `133.00 AYUSHMAN BHARAT PM’s health scheme to face soaring costs Indian Defence A RED initiative appears in today’s edition of The Financial Express. These pages are an initiative of the marketing solutions team of The Indian Express Group and contain content paid for by advertisers. These pages should be read as advertisement. IN THE NEWS Rupee falls to below 70 against the dollar THE RUPEE on Tuesday touched an all-time low, falling below 70 against the US dollar, before recovering at the close on suspected RBI intervention and the finance ministry's dismissing the concerns over its sharp fall, reports PTI. While Rajasthan’s existing Bhamashah offers `5 lakh cover for `1,263, Chhattisgarh’s `50,000 cover costs as much as `1,100 CHIRAG MADIA Mumbai, August 14 PRIME MINISTER NARENDRA Modi’s ambitious Ayushman Bharat health insurance scheme,whichwillfigureinhis Independence Day speech, is already facing soaring costs andislikelytofacebudgetconstraints in the future. This is because while the central government is looking at capping its share of costs of the `5-lakh insurance coverat `1,000-1,100 per year per family, the costs have already crossed this in the small number of states where a limited insurance model is being used. In most states, no insurance companies will be used; instead, the costs of treatment will be paid out of a “trust” in which both the Centre and states will deposit w w w. ra f a l e. co. i n Insuring trust Premiums rise Rajasthan Chhattisgarh* Gujarat* Bhamashah yojana Ayushman Bharat Ayushman Bharat `1,263 `1,100 `361 Losses rising `5 lakh `50,000 `50,000 114* annual cover per family annual cover 136^ annual cover their share of the costs. If the costs paid out to hospitals are greater than the Centre/ state government contributions,the losses will have to be shared between them; in the insurance model, any extra payoutsarebornebytheinsurance/reinsurance company.In states like Rajasthan and Chhattisgarh where some form of free health insurance is already offered (see graphic) the claims ratios are already over100%,making fraud mitigation critical. Some states like Gujarat and Chhattisgarh are offering a “hybrid” model where insur- OVER Claims ratio, % for existing schemes per family *Under Hybrid scheme, insurance to cover `50,000 per annum claims; claims above that, upto `5 lakh will be covered by “trust” Rajasthan Chhattisgarh *For July 2018 ^As on May 31, 2018 ance companies will pay for claims made below `50,000 per year per family; claims above this and below `5 lakh will be dealtwith bythe“trust”. Though this has not been finalised, most states are expected to hire third-party administrators to help administer the scheme within the “trust”. The bid for Chhattisgarh’s “hybrid” model was won by Religare Health which bid `1,100 per family while Bajaj Allianz was the L2 bidder at `1,270. Continued on Page 2 60 YEARS. TO O FA N I JSW said to offer highest bid for Bhushan Power Trade deficit hits 62-month high in July SURYA SARATHI RAY New Delhi, August 14 FE BUREAU New Delhi, August 14 As 23 states opt for “trust model”, limited role for insurance in Ayushman Bharat per family NEARING CLOSURE ● PRESSURE ON CAD MYSTERE IV 6 MERCHANDISE TRADE DEFICITwidenedfurtherinJuly toscalea62-monthhighof$18 billion,thankstoanelevatednet oil import bill and an almost 41% jump in gold purchases from overseas after a contractionintheprevioussixmonths, showedofficialdatareleasedon Friday.In June,the trade deficit had hit $16.6 billion. Growing trade imbalance wouldworsen current account deficit (CAD). Already, the rupee’sdepreciationhasraised fears of costlier imports while the country’s ability to take advantage of a weak currency to improve exports remains limited. Continued on Page 2 Trade deficit 15 12 11.5 9 6 3 0 July 2017 July 2018 Source: Ministry of commerce AIRCRAFT TYPES. ALIZE 18 18 $ billion JAGUAR 1 JSW STEEL, TATA Steel and the UK-basedLibertyHouseareunderstood to have offered between `17,000 crore and `19,700 crore for the debt-hit BhushanPowerandSteel(BPSL). JSWSteel is believed to have agreed to pay `19,350 crore to BPSL’s financial creditors plus `350 crore to the operational creditorsagainsttheiradmitted claims of `700 crore. BPSL owed lenders, led by Punjab National Bank,`47,000 crore. Sourcespresentatthecommittee of creditors (CoC) meet- AUGUST July 20: NCLAT asked the CoC to select H1 and H2 bidders July 27: CoC allowed JSW Steel to submit revised bid July 30: Tata Steel challenged CoC's decision in NCLAT July 31: CoC selected Tata Steel as H1 and JSW Steel as H2 bidder Aug 1: NCLATasked all 3 bidders to make revised offer byAug 6 Aug 3:Tata Steel moved NCLAT seeking extension and also SC challenging NCLAT's revised bid order Aug 6: NCLATgranted 1-week extension for submission of revised bid Aug 13: CoC meets; JSWSteel emerges H1 bidder ing held on Tuesday said Tata Steel did not revise its original offer of `16,500 crore for financial creditors though it has said it would pay operational creditors `500 crore. ● POINT OF CONTENTION RBI sees flaws in Kotak promoter stake dilution PRESS TRUST OF INDIA Mumbai, August 14 THE RESERVE BANK of India (RBI)onTuesdaysaidtherecent stake dilution byKotak Mahindra Bank founder Uday Kotak does not meet its regulatory norms on the same,something the private sector lender contested. On August 2, Kotak had sold a part of his stake in the N AT I O N MIRAGE 2000 JULY R A FA L E lender, bringing down his personal holding to under 20% by issuingperpetualnon-cumulative preference shares (PNCPS). “The RBI today communicated to us that our PNCPS issuancedoesnotmeetthepromoterholdingdilutionrequirementoftheregulator,”thebank said in a regulatoryfiling. Continued on Page 2 Continued on Page 2 eFE P13 Cyberattack is a high-stakes situation for SMBs
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