OPINION, P8 MARKETS, P11 SURJIT BHALLA Celebrate the fact that quotas are now for the poor, even non-Hindus INTERNATIONAL, P14 SUNIL JAIN AIRCEL-MAXIS CASE WALL DISPUTE HAL’s inefficiency was used to debunk Rafale case — this should be applied to all PSUs Ashok Chawla resigns as NSE chief in light of legal developments Trump weighs declaring emergency as shutdown nears record length NEW DELHI, SATURDAY, JANUARY 12, 2019 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL.XLIV NO. 270, 24 PAGES, `10.00 (PATNA `9.00, RAIPUR `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 SENSEX: 36,009.84 ▼ 96.66 NIFTY: 10,794.95 ▼ 26.65 NIKKEI 225: 20,359.70 ▲ 195.90 HANG SENG: 26,521.43 ▲ 59.11 `/$: 70.49 ▼ 0.09 `/€: 81.22 < > 0.00 BRENT: $61.18 ▼ $0.50 GOLD: `32,117 ▲ `1 — AKHILESH ON TIE-UP WITH MAYA ‘Found glue to attach people to ourselves’ THE SUPREME COURT on Friday gave further three weeks time to Reliance Communications (RCom) and Reliance Jio Infocomm (RJio) to resolve among themselves as to who willbeliableforthepastduesof the former once the spectrum tradingdealbetweenthetwois cleared by the government. At its last hearing on January7,thecourtgavetimetothe two sides till Friday to resolve the matterafterRJio refused to give an undertaking that it would paythe dues of RCom,if any came to light, once the trading deal was through. Appearing before a bench led by justice RF Nariman, senior counsel Kapil Sibal sought three-week adjournment on behalf of RCom as the company wanted to move the telecom tribunal. The court granted the request. The apex court had maintained that the department of telecommunications (DoT) would give the required no objectioncertificatetothedeal only after RCom and RJio resolved the issue between Centre's cumulative capital investments in CPSEs as on March 31, 2018 Samajwadi Party president Akhilesh Yadav (left) and Bahujan Samaj Party supremo Mayawati SAURABH KUMAR & PRASANTA SAHU New Delhi, January 11 ■ There is a perception that the BJP is still strong, but it is a fact that it draws strength from its allies who have started to drift away ■ SP and BSP have answers to many big questions that the country faces ■ ‘Confused Prime Minister’ is calling others ‘accidental Prime Minister’ glue dhoondh liya hum ne,jiska sankoch karte thhey (I said it many times that Samajwadi people have works and achievements to show but do not have the glue to attach people to ourselves.Finally,we have found that glue, one which we were hesitant earlier,”he said. “There is still a perception that the BJPis more strong but the truth is that they have entered into alliances on a large scale, there are many leaders of other parties with them,and because of this,they became powerful... but many such parties have started leaving them,”he said. Targeting the BJP,Akhilesh, ■ No clarity on actual outcomes of demonetisation and GST whowas also laterjoined byhis wife and Kannauj MP Dimple Yadav, referred to Prime Minister Narendra Modi as “confused Prime Minister” who is calling others “accidental Prime Minister”. He said there was no clarity on the actual outcomes of demonetisation, GST and, “those who have taken oath of office are not clear which oath to follow, whether one taken with the Constitution or the one taken with the RSS”. “Aise confused sarkar ke, aise confused Prime Minister kisi ne nahi dekha jo hum ne dekha hai,”he said. ONE ARM OFthe government takes away what the other has given.In what could be seen as partial roll-back of the powers to take financial decisions delegated by the department of public enterprises to top central publicsectorundertakings in 2015, the department of investment and public asset management has sent a missive to them, mandating its prior nod for the setting up of anysubsidiaryorjointventure. Continued on Page 2 RCom's `25,000 crore spectrum trade deal with RJio needs DoT's approval RCom has given corporate guarantee towards spectrum usage charges However, DoT wants an undertaking for any past dues which may come up ■ RCom needs to pay `550 crore to Ericsson ■ RJio does not want to take liability for any past dues ■ Payment is stuck as deal not cleared by DoT themselves over the past dues. “Sit down and resolve this betweenyourselves,itisnotfor us. Till you don’t resolve between yourself, we can’t do anything,”the judge said at the last hearing on January 7. Thebenchinitslasthearing had also sought response from RCom chairman Anil Ambani on a plea by Swedish telecom equipmentmanufacturerEricsson India seeking initiation of contempt proceedings against himandtwoothersforfailingto clear its dues of `550 crore. REUTERS Mumbai/New Delhi, January 11 US PRESIDENT Donald Trump on Friday assured H-1B visa holders that his administration will soon bring changes that will give them certainty to stay in America and a “potential path to citizenship”, reports PTI. Trump on Friday tweeted that his administration is planning an overhaul of US policies on H-1B visa and will encourage talented and highly-skilled people to pursue career options in the US. Trump's tweet comes as a good news for Indian professionals, especially in the IT sector, who currently have to wait for nearly a decade to get a Green Card or permanent legal residency. PAGE 2 Lessors to troubled Jet Airways consider taking back planes CRISIS TALKS between cash-strapped Jet Airways and aircraft lessors have failed to ease a row over late payments, prompting some lessors to explore taking back aircraft, sources said, reports Reuters. In what one source described as an ill-tempered showdown between the airline and some of the world’s leading leasing firms, Jet’s main lender State Bank of India sought to provide reassurance that the country’s biggest full-service carrier is doing all it can to pay its staff, suppliers and creditors. PAGE 6 Sebi issues new norms for equity cash, derivatives segments THE SEBI on Friday came out with timelines as well as conditions for the implementation of uniform membership structure in the equity derivatives and cash segments, reports PTI. The membership structure applicable in the equity derivatives segment would also be implemented in the cash segment from April 1, the watchdog said in a circular. "Unification of membership structure across equity cash and derivatives segments of stock exchanges is vital to facilitate ease of doing business," the circular said. PAGE 10 THE COUNTRY'S SECOND largest software services exporter, Infosys, on Friday posted its October-December earnings which were lower than analysts’ estimates as subdued growth in services and cautious spending by clients created pressure. Still, thecompanyraiseditsrevenue growth forecast for FY19 to 8.5-9% in constant currency, from 6-8% previously. Infosys also approved a buyback of shares worth `8,260 crore at a price not exceeding `800 per share, which is at a 17% premium to its current market price of `683.50. It also announced a special dividend of `4 per share thatwould be a payout of approximately `2,107 crore. Netprofitduringtheperiod declined12.1%sequentiallyto `3,610 crore. Rupee revenue grew by 3.8% on a quarter-on- Report card (` crore) Q2FY19 Q3FY19 Prime Minister Narendra Modi, BJP president Amit Shah and others at the ‘BJP National Convention’, in New Delhi on Friday EXPRESS PHOTO: NEERAJ PRIYADARSHI % Change Revenue Net profit 3.8% 12.1% 23.7% 1.1 All eyes on Modi 22.6% Operating margin (%) quarterbasis to `21,400 crore. Revenue in dollar terms rose 2.3% to $2,987 million. Digital revenues at $942 million (31.5% of total revenues) grew 5% sequentially in constant currencyterms. Continued on Page 2 Cause for worry FE BUREAU IIP growth hits 17-month low in November Industrial output grew just 0.5% in November 2018, the lowest since June 2017 when companies had trimmed production to offload inventory ahead of the GST roll-out and compared with 8.1% in the previous month, as an unfavourable base and Diwali holidays weighed. A 3.4% drop in capital goods means a recovery in investments hasn't yet taken roots. Worst show in GST era Manufacturing sinks, again (% rise, y-o-y) Nov 10 8.5 Jan ‘18 IIP 8.5 8 Oct 8.4 6 6 4 2.8 2 0 -2 (% rise, y-o-y) 12 10.4 10 8 May -0.3 June 2017 0.5 Nov 2018 1.4 Mining Manufacturing Electricity 5.1 3.9 4 2 2.7 0 -2 -0.4 Nov 2018 Nov 2017 MONSANTO'SVICTORYTHIS week in a patent case in India regardinggeneticallymodified (GM) cotton seeds has raised hopes among farmers that the company will now launch its next-generation seeds. India approved Monsanto’s GM cotton seed trait in 2002 and an upgradedvariety in 2006, helping transform it into the world’s top producer and second-largest exporterof the fibre.But newertraits have not been available since Monsanto withdrew an application in 2016 seeking nod for the latest variety due to a royalty dispute with the government and worries over patent claims. Nevertheless, the new herbicide-tolerant variety seeped into Indian farms and many cotton growers openly sowed them last year, prompting a governmentinvestigationthat is ongoing. Monsanto has said local seed companies have illegally attempted to “incorporate unauthorised and unapproved herbicide-tolerant technologies into their seeds”. “We don’t understand legal issues but we want new technologies,”Shrikant Kale, a cotton growerinYavatmal district in Maharashtra,said byphone. Detailed report on Page 12 HARD-SELLING ACHIEVEMENTS Jaitley hints at greater support to farmers to overcome distress FE BUREAU New Delhi, January 11 FINANCE MINISTER ARUN Jaitley on Friday hinted at greater support to farmers to recover from distress and listed steps initiated by the current regime to improve the lot of the middle class and the poor,includingquota,taxrelief and new scheme for health, seeking to bolster his government’s image in the build-up to the general polls. The minister said besides doubling the expenditure on interest subvention for farmers, completing the 99 unfinished irrigation schemes and rolling out a novel crop insurance scheme,the government had sought to give farmers a 50% profit over their costs. “The farmers, of course, need greater support and the government is committed to the same,”he added. In a first, the government has extended a `2-lakh-crore State funding for MNREGA spending/ rural roads/year (` cr) year (` cr) Source: FM's blog Rural sanitation Pre-UPA NDA annual tax rebate (both direct and indirect taxes) to the middle class, without a single UPA UPA 39% NDA 60,000 US administration to make major changes in H-1B visa ANIRUDDHA GHOSH Bengaluru, January 11 ~30,000 QuickPicks Announces `8,260-crore share buyback; gives special dividend of `4 per share 27,000 A diamond-studded 1958 Chevy Impala, tuned-up Lamborghinis and a Supra with a fiery paint job are among those on display at Japan’s annual customvehicle extravaganza ■ Motobahn, P13 Infosys reports 12% decline in Q3 profit 9,000 Most outlandish car show in the world is on in Tokyo Continued on Page 2 Farmers hope for next-gen GM seeds BELOW ESTIMATES Special Feature Ericsson has sought that Ambani be “detained in civil prison” and restrained from travelling abroad unless the payment is made. While allowing RCom to deposit `118 crore towards its dues to Ericsson with the Supreme Court registry, the apex court had refused to exempt Ambani and others from personal appearance before it on the next date of hearing after five weeks. ● MONSANTO VERDICT Continued on Page 2 3,610 THE SUPREME COURT is satisfied with the steps that have been taken by the Centre in compensating victims of faulty implants manufactured by Johnson and Johnson, reports fe Bureau in New Delhi. It accepted the principles of the formula that have been recommended to pay damages between `30 lakh and `1.22 crore to those fitted with the hip implants between 2004 and 2010. FE BUREAU New Delhi, January 11 Funds 'being invested' in under-construction CPSE arms as on March 31, 2018 4,110 SC accepts J&J compensation formula A DAY AHEAD of a formal announcement of an alliance with Mayawati’s BSP for the Lok Sabha elections, SP chief Akhilesh Yadav on Friday said he has not only learnt the “ginti”(numbers) which led to the defeat of BJP in the Gorakhpur and Phulpur Lok Sabha bypolls but has also found the missing “glue” which he was “hesitant” to use earlier. Responding to questions from a village in Kannauj on #Akhileshkichaupal,a Twitter India initiative, Akhilesh said while there is a perception that the BJPis still strong,it is a fact that it draws its strength from its many allies who have started to drift away. He said SPand BSPwill hold a joint press conference in LucknowonSaturdaytotalkabout future numbers in detail, and that they have answers to many big questions that the country faces. “Hum ne kayi baar kaha Samajwadiyon ke paas kaam bhi hai, uplabhdiyan bhi hai, lekin hum pe glue nahi hai chipkane ka kuch... Akhirkaar woh RCom, RJio get 3 weeks more to resolve DoT liability issue `1,69,907 cr 21,400 FORMER CBI DIRECTOR Alok Verma, ousted by a highpowered committee, on Friday asked the government to treat him "deemed superannuated" with immediate effect, reports PTI. Verma stated the committee has not provided him an opportunity to explain the details as recorded by the CVC before arriving at the decision of transferring him. MAULSHREE SETH Lucknow, January 11 Fresh curbs by DIPAM on CPSE arms, JVs `20,000 cr ALL-OUT ATTACK ON BJP 20,609 IN THE NEWS Axed CBI chief Verma resigns from service SP chief says learnt the ginti which led to the defeat of BJP in the Gorakhpur and Phulpur Lok Sabha bypolls CALL WAITING ● POWERS THAT BE 98% NDA impost being increased for them,he said. The GST has emerged as the single-most important “consumer-friendlymeasure” in India, and the government has sacrificed around `1 lakh crore by lowering the GST rates on most commodities to make these available at reasonable prices,he added. The government has promised a house for every rural poor by 2022 and about 50 lakh houses are being built in rural areas annually. State funding has been raised three times to `27,000 crore annu- ally during the NDA regime. Each village has been electrified and rural sanitation has moved up from 39% to over 98%. The poor are being provided cooking gas under the Ujjawala Scheme. The annual expenditure under the flagship employment guarantee scheme, MGNREGA, has crossed`60,000crore,“almost twice of what was being spent by the UPA”. Continued on Page 2
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