OPINION, P2 MIND & GAMES Power lies in non-use IDEA EXCHANGE TAKING THE OCEANS’ TEMPERATURE, SCIENTISTS FIND UNEXPECTED HEAT Omar Abdullah Using a new technique, researchers found that between 1991 and 2016, the oceans warmed an average of 60% more per year than official estimates Page 10 ACROSS THE AISLE, P CHIDAMBARAM Vol XV No. 11 ‘When 14 leaders sit on stage, it allows Modi to play victim... biggest favour we can do to him’ Page 7 Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM LEISURE CUISINE CULTURE KOLKATA SUNDAY, NOVEMBER 4, 2018 18 Pages, `10 (NE States & Andaman `13) FINANCIALEXPRESS ON SUNDAY READ TO LEAD PUBLISHED FROM:AHMEDABAD, BENGALURU, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI, NEW DELHI, PUNE DISINVESTMENT Govt to soon sell 10% stake in GIC Re, NIA WHAT'S INSIDE ● Proceeds from offers for sale in the general insurance firms likely to cross `9,500 crore PRASANTA SAHU New Delhi, November 3 ■ SPOTLIGHT, P5 The changing face of Diwali THE CENTRE HAS put in abeyance a plan to merge the three public-sector general insurance companies OIC, UIIC and NIC, but might soon sellabout10%eachinGeneral Insurance Corporation (GIC Re) and New India Assurance (NIA) in the fourth quarter of this fiscalyear.GIC Re and NIA were listed last year. At current market prices, the offers for sale (OFSs) in both the state-run insurers could fetch the Centre a tidy sum — `9,500 crore or thereabouts. A ministerial panel headed by finance minister Arun Jaitley has recently approved the OFSsinGICandNIA,anofficial said. It also asked the department of investment and pub- From healthier indulgences and green crackers to innovative lights and a surge in vacations, the festivities have undergone a quiet metamorphosis over the years ■ WORDS WORTH, P4 Nice guywho finished second The Man Who Saved India drives home the point that Sardar Patel never got his due OFS PLAN ■ Centre has put in abeyance a plan to merge the three public-sector general insurance companies OIC, UIIC and NIC ■ A panel headed by finance minister Arun Jaitley recently approved the offers for sale in General Insurance Corporation and New India Assurance ■ GIC Re and NIA were listed last year lic asset management (Dipam) to initiate the process to appoint merchant bankers. As the government listed GIC Re, India’s biggest reinsurer, in October last year, it sold a 12.5% stake to mop up `9,704 crore. The company also issued fresh shares at that time to raise `1,553 crore for itself to fund business expansion. The Centre now owns 85.78% in GIC Re. GIC stock closed at `327, up 2.89% on BSE, on Friday.A 10% stake sale in the firm would fetch about `5,740 EXPANSION STRATEGY QuickPicks Lenskart eyes 50% market share ONGC posts 61% increase in net profit to `8,265 crore STATE-OWNED OIL and Natural Gas Corp (ONGC) on Saturday reported a 61% jump in its September quarter net profit as higher prices offset a dip in oil production, reports PTI. Its net profit was `8,265 crore in July-September compared with `5,131 crore in the same period last year, the company said in a statement. The company got $73.07 for every barrel of crude oil it produced and sold in the second quarter, up 48% from $49.43 per barrel realisation a year ago. Because of the depreciation in rupee, ONGC's realisation soared 61% to `5,117 per barrel. ODD & EVEN SHINMIN BALI Mumbai, November 3 OPTICAL SOLUTIONS PROVIDER Lenskart, having turned profitable six months ago, is looking beyond being a manufacturer and retailer for eyewearandnowwantstosolve vision correction as a whole. Armed with an offline expansion strategy and upping the ante in the B2B play,the aim for Peyush Bansal, founder and CEO,Lenskart,istoown50%of market share in eyewear in the next fewyears. By December, Lenskart will launchafunctionthatwillallow customerstocheckthepowerof spectacleswithintheappandby the end of 2019, the company plans to roll out a pilot that would enable users to conduct eye tests using an app.Twenty per cent of the app-enabled vision correction features is ROHNIT PHORE Looks at small town retailers in its efforts to capture market beyond tier 1 cities aimedataidingonlinecustomer acquisition, while 80% is to enable retailers in small towns toconducteyeexamsthrougha phone. Standalone retailers especially in non-tier 1 cities, with a store presence anywhere between one and 10, have strongly held customer bases that can be hard to drawout for players like Lenskart. Continued on Page 11 Cheaper tariffs by Jio set to end? With over 30% share in 5 circles, telco could invite Trai’s predatory price penalty RISHI RANJAN KALA New Delhi, November 3 RELIANCE JIO MAY find it diffi- cult to play the tariff card, at least in the five telecom circles where it has acquired a market share of 30% or more.The five circles are C category circles of Odisha, Assam, Himachal Pradesh, Bihar and Madhya Pradesh, where the paying capacityofsubscribersisseenas low, and it is here that Jio has grown in a big way in the last few months on the back of its `500 JioPhone,which is a 4Genabled feature phone. Apart from the tariff card and cheap phone, another reason for Jio doingwellintheCcategorycircles is that it offers a fully 4G service whereas the roll-out of 4G services by the incumbents inthesecirclesisrelativelypoor. However, analysts now see itdifficultforJiotoslashtariffs furtherinthesecircleswithout invitingthepenalprovisionsof predatory pricing. The reason RELIANCE JIO CIRCLE-WISE GROSS REVENUE 2,398 2,111 (Circle GR, ` crore) Jio's GR 843 Jio's share (%) 688 33 317 730 280 Odisha The fish-eating Brahmins of Goa, Goud Saraswats, are taking their cuisine out of their home kitchens Page 9 32 220 Assam 31 98 Himachal Pradesh for the constraint will be a Telecom RegulatoryAuthority of India (Trai) regulation issued in February on predatory pricing, which imposes a penalty of up to `50 lakh per circle on mobile operators if they are found to indulge in such practices. Defining for the first time 30 Bihar 628 30 Madhya Pradesh predatory pricing,Trai had,in the regulation, said a tariff will be considered predatory if in a relevant market an operator with over 30% market share offers services at a price that is below the average variable cost, with a view to reduce competition or eliminate the competitors in the relevant market. AtthattimeJiodidnothave 30% market share in any circle,but incumbents like Bharti Airtel, Vodafone or Idea Cellular did. This meant that while Jio could offer below-cost tariffs, the incumbents could only match them, but could not have the firstmover advantage. In fact, the whole exercise by Trai to define predatory pricing was started after Reliance Jio entered the market in September 2016 with free services, resulting in incumbent operators to protest and call the offer as predatory. According to Trai’s regulation, variable cost will be arrivedatafterdeductingfixed cost and share of fixed overheads borne by the company from total cost incurred by it for running a business during the period under review. Continued on Page 11 crore at current market prices. In November 2017, the Centre had mopped up `7,653 crore by listing NIA. It now owns 85.44% in the general insurer. On Friday, NIA share price closed at `227.4, up 3.93% from the previous close. So far this year, the Centre has managed to garner just `15,289 crore from disinvestment, as against `67,102 crore (including ONGC-HPCL deal) assured bythe same time last year. TheCentre’sdisinvestment receiptwould get a boost if the OFSs in the two general insurers go through this year. Since the OFSs would be closer to general elections, the market conditions could decide the timing of the stake sales. In a pro-investor move recently, NIA as well as GIC, issued one bonus share for each share held in the company. Global catastrophes and high claims in the Pradhan Mantri Fasal Bima Yojana (PMFBY) had hit GIC in FY18. Its FY18 net profit was `3,234 crore,up only3%yearon-year. Continued on Page 11 Data privacy should not be at cost of innovation: Prasad ● Says biometric data on Aadhaar so strong it can't be breached FE BUREAU New Delhi, November 3 ATATIME whenthegovernment is in the process of framing a comprehensivelawondataprotection,informationtechnology and law minister Ravi Shankar Prasad has said while data privacyisamust,itshouldnotbeat the cost of innovation. SpeakingataCIIconference onfinancialinclusiononSaturday, Prasad said even the Supreme Court, in its order on dataprivacy,hasstatedthatprivacyshould not kill innovation. “The stakeholder is the trustee ofdataonbehalfoftheownerof data. And every Indian must owndata.However,thereshould be a healthy balance between openness, availability, utilisationandprivacyofdata,”hesaid. The government is currentlyin the process of holding inter-ministerial discussions on the recommendations of Justice BN Srikrishna committee on data privacyand protection,which will lead to formulation of a comprehensive law IT minister Ravi Shankar Prasad Prasad said the government is committed to foster inclusion with digitisation as a medium on the subject. Also, the RBI orderthat all payments related data should be stored within the country from October 15 has come into force. While domestic payment firms store data in the country, internationalfirmsdon’t.Butnowthey are in the process of doing so. On its part, the Srikrishna panel,in its recommendations, hasstruckamiddlepathandnot recommended a blanket local datastoragewithinthecountry. It has identified circumstances underwhichdatahastobecompulsorily stored in the country and caseswhere it can be stored withmirroringprovisions.Ithas statedthatcriticaldatawillhave to be stored in the country. SpeakingonAadhaar,Prasad said data cannot be breached as it is stored in a safe, encrypted manner.“BiometricdataonAad- haar is kept in safe and secure conditionsinanencryptedform, andsostrongthatevenforabillionth of a second it cannot be breached…Aadhaar data is kept insecureconditionsdulybacked byaParliamentarylaw,sostrong thatifanyonetriestodisclosethe biometricdetails,hecanbeprosecutedanditcanonlyhappenin the case of compelling national security,that too after the affirmation of a committee headed bytheCabinetsecretary,”hesaid. On financial inclusion, he said that the government has created an ecosystem and an enablingenvironmentbyrelaxing laws,easing procedures and removing barriers to foster growth which in turn would facilitatefinancialinclusionand social empowerment. Continued on Page 11
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