OPINION, P8 INTERNATIONAL, P14 INTERNATIONAL, P14 EDITORIAL TWITTER SUGGESTION TECH INDUSTRY WORKERS Trump’s advice for Boeing: Rebrand 737 MAX planes Alibaba’s Jack Ma again endorses extreme overtime amid furore Electoral bonds hit transparency, so the govt must scrap them At last, EC acts against Mayawati, Adityanath, SC objects to Rahul statement on Rafale NEW DELHI, TUESDAY, APRIL 16, 2019 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLV NO. 38, 20 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: 38,905.84 ▲ 138.73 NIFTY: 11,690.35 ▲ 46.90 NIKKEI 225: 22,169.11 ▲ 298.55 HANG SENG: 29,810.72 ▼ 99.04 `/$: 69.42 ▼ 0.25 `/€: 78.53 ▼ 0.23 BRENT: $71.14 ▼ $0.41 GOLD: `31,574.00 ▼ `99.00 Continued on Page 2 Continued on Page 2 Jyoti Structures: Plea against resolution plan dismissed THE `4,000-CRORE resolution plan by Sharad Sanghi and others for Jyoti Structures on Monday got a thumbs-up from the Supreme Court, in what nullified the possibility of the debt-laded EPC firm getting liquidated, reports Indu Bhan in New Delhi. The NCLT last month had approved an amended plan for the firm with a heavy debt of `7,011 crore, on a directive from the appellate tribunal (NCLAT), but DBS Bank, the sole first charge-holder over certain assets of the firm, subsequently challenged the plan in the SC. An SC bench has now dismissed DBS Bank’s appeal against the NCLT order that accepted the amended resolution plan for Jyoti Structures. PAGE 6 HDFC AMC rolls over fixed maturity plans for another year HDFC ASSET Management Company (AMC) has received the approval of over 90% of the investors to roll over the fixed maturity plans (FMPs), which have seen a delay in repayments by two Essel group companies, reports Chirag Madia in Mumbai. The HDFC Fixed Maturity Plan — 1,168 Days — February 2016 (1) which matured on Monday has been extended by over a year to April 29, 2020. According to disclosures as on March 2019, the plan had invested around `66.49 crore in Edisons Infrapower & Multiventures and Spirit Infrapower & Multiventures. PAGE 10 iPhone to go into mass production in India this year, says Foxconn FOXCONN TECHNOLOGY Group chairman Terry Gou said the iPhone will go into mass production in India this year, a shift for the largest assembler of Apple’s handsets that has long concentrated production in China, reports Bloomberg. Gou said that Prime Minister Narendra Modi has invited him to India as his Taiwanese company plans its expansion in the country. Apple has had older phones produced at a plant in Bengaluru for several years, but now the company will expand manufacturing to more recent models. PAGE 6 UNSURE OF WHEN the telecom industry will see the return of rational pricing, Vodafone Idea will leverage its asset base to improve market penetration and drive up the average revenue per user (ARPU), CEO Balesh Sharma saidonMonday.Sharmaadded the telco would partner content providers to help push up revenues. The country’s largest telco, with 387 million subscribers, Revenue market share 32 31 30 29 28 29.7 QuickPicks KIRAN RATHEE New Delhi, April 15 Subscriber market share 40 30 20 10 0 23 Additional information sought may be used for better profiling of taxpayers, tracking cases of potential tax evasion and expanding the tax base using data analytics ■ Personal Finance, P13 Voda Idea to leverage asset base to boost ARPU Reliance Jio New ITR forms seek more details from taxpayers ITR papers.TheCJIreplied,“youare right to the extent we didn’t say it”. The bench asked Gandhi to file a response on or before April22andsaidthepetitioner will be at libertyto file an additional affidavit if necessary. The court will hear the matter next on April 23. Reacting to the developments in court, Union finance minister Arun Jaitley said “Indian democracy does not permit dynasties to rewrite court orders”. CEO-SPEAK Special Feature 30 THE SUPREME Court on Monday refused to stay the Madras High Court order directing the Centre to ban Chinese video app TikTok over concerns about easy access to pornographic content through it, reports fe Bureau in New Delhi. 33 SC refuses to stay HC order banning TikTok decided by this Court was a purelylegalquestionofadmissibilityofcertaindocumentsto whichobjectionswereraisedby the learned Attorney General,” the bench said. It said “no views, observations or findings should be attributedtotheCourtinpoliticaladdresstothemediaandin public speeches, unless such views,observationsorfindings are recorded by the Court”. Appearing for Lekhi,senior advocate Mukul Rohatgi said the court had not said anysuch thing and had only decided on the admissibility of certain (in %; figures as on Dec 2018) Source: Industry has launched a `35 minimum recharge plan to drive ARPUs and is open to raising the price but only after doing full due diligence. “I am not sayingwewill not ever increase the prices, I am onlysayingwe have towait.Let the plan stabilise and let us assess the sensitivities,” Sharma observed. He believes the way to up the pricing would be to hand hold these customers from `35 to `65 and to `95.“How doyou do that? For`35you are giving them the bare minimum and when the customer wants to use more, the price needs to go up,” Sharma said. Vodafone Idea’s nearest competitorBhartiAirtel,whichalso offers the same minimum recharge plan, has indicated it might increase the price it to `75 or more. “First, we want to create more capacity and coverage and slowly take these guys up rather than trying to do somethingmoreradicalwherethese people leave us.That’s why we are going to look at the sensitivities,”Sharma added. Continued on Page 2 FLIGHT PATH Jet Airways board to meet on April 16 Board to discuss status of negotiations with lenders ARUN NAYAL & MANISHA SINGHAL New Delhi/Mumbai, April 15 PUNISHING THEM FOR their “highlyprovocative”speeches, the Election Commission of Indiainvokeditsextraordinary powersonMondaytobarUttar Pradesh chief minister Yogi Adityanath and BSP chief Mayawati from campaigning for three (72 hours) and two (48 hours) days, respectively, starting 6 am Tuesday. Besides, Samajwadi Party leader Azam Khan and Union minister and BJP leader Maneka Gandhi were also barred from campaigning for 72 hours and 48 hours,respectively. The punitive action was taken against the BSP chief for appealing directly to Muslim voters in Saharanpur and Bareilly districts during a joint rally of the BSP-SP alliance on April 7. Adityanath was punished for his “Ali and Bajrangbali” remark at a Meerut rally onApri 9 and the“green virus” comment which was a reference to Muslims in the country. Congress chief Rahul Gandhi interacting with the media recently Bharti Airtel THE ENFORCEMENT Directorate (ED) on Monday opposed the bail plea of an alleged defence agent arrested in the AgustaWestland VVIP choppers scam, saying there was a likelihood of him fleeing India like 36 businessmen who had criminal cases against them, reports PTI. The ED said that 36 businessmen, including Vijay Mallya and Nirav Modi, have fled India in the recent past. Carrier operates just 6-7 planes of its fleet of 119 aircraft on Monday RITIKA CHOPRA & ANANTHAKRISHNAN G New Delhi, April 15 EXPRESS NEWS SERVICE New Delhi, April 15 THE SUPREME COURT on Monday sought an “explanation”from Congress president Rahul Gandhi following a plea seeking initiation of contempt proceedings against him for allegedly attributing to the top court certain remarks on the Rafale deal order in his speech. It was hearing a plea by BJP leader Meenakshi Lekhi who contended that Gandhi, while referringtothecourt’sApril10 order rejecting the Centre’s objections to the admissibility of certain documents submitted by review petitioners, had said that the ‘Supreme Court said chowkidar chor hai’. The bench of Chief Justice of India Ranjan Gogoi and Justices Deepak Gupta and Sanjeev Khanna clarified that it hadnotsaidanythingasstated to have been made by Gandhi. “We make it clear that this Courthadnooccasiontorecord anyvieworfindingormakeany observationasallegedlyattributedtotheCourtbytherespondent in as much as what was Jet fails to garner interim funding from lenders Campaign bans on Yogi, Maya, Maneka, Azam Bench asks Cong chief to file a response on or before April 22; court to hear matter next on April 23 31.4 36 businessmen fled India in recent past: ED SC asks Rahul to explain remark it never made 38 WHOLESALE PRICE inflation rose to a three-month high of 3.18% in March on costlier food and fuel, government data released on Monday showed, reports PTI. The Wholesale Price Index (WPI)-based inflation was at 2.93% and 2.76% in February and January this year, respectively, and 3.46% in December 2018. It was 2.74% in March last year. CASH CRUNCH CONTEMPT PLEA Vodafone Idea IN THE NEWS WPI inflation spikes to 3.18% in March Airline extends suspension of international ops till April 18 CASH-STRAPPEDJETAirways is staring at a closure after the airline on Monday failed to find financial support from lenders.Chiefoperatingofficer Vinay Dube said lenders headed by State Bank of India (SBI) were yet to commit interim working capital. The full-service carrier operated just 6-7 planes of its fleet of 119 aircraft on Monday.CivilaviationrulesinIndia require an airline to operate a minimum of five aircraft to keepitsoperatingpermitvalid. “As you are aware, we have been working with the lenders to secure interim funding for our operations. The interim funding has not been forthcoming thus far,” Dube said in a letter to employees. Jet had sought interim loans from its lenders on Friday but was asked to restructure its demand, civil aviation secretaryPradeep Kharola had told reporters.Meanwhile,the lenders have received at least eight bids from prospective buyers forthe beleaguered airline. Final bids need to be submitted by end–April. Lenders are offering an equity stake between 31.2% and 75% Employees urge PM Modi and lenders to save airline along with control and management of the airline. The board of the full-service carrier,whose operations have been seriously hampered by a shortage of working capital and non-payment to lessors,will onTuesdaydiscuss the current state of negotiations with the lenders to chart out a survival strategy. Jethasextendedthecancellation of international operations till April 18 due to the cash crunch. The airline stopped international flights last week, it also cancelled all its west-bound operations to SAARC and ASEAN countries Forecast season FE BUREAU IMD sees ‘near normal’ monsoon The India Meteorological Department on Monday predicted this year's southwest monsoon rainfall to be ‘near normal,’ at 96% of the benchmark long-period average Monsoon rainfall (% of LPA) 106 106 98 97 88 95 86 93 Actual 95 96 Forecast* 96 91 97 India's foodgrain production (million tonne) 2013-14 265.05 2014-15 252.02 2015-16 251.54 2016-17 275.11 2013 2014 2015 2016 2017 2018 2017-18 284.83 2019 2018-19 281.37 *IMD's first forecast in April; long period average (LPA) is 887.5 mm; 96-104% of LPA is “normal” Detailed report on Page 12 on Sunday. Officially, Jet flies 44 dailyflights,not possible to achieve with the current fleet of five ATRs or smaller planes and one Boeing 737. Jet has not paid its 20,000 employees their March salaries; pilots have not been paid since January while dues to other employees — aircraft maintenance engineers and senior management — also remain unpaid for several months. The airline has not paid its vendors and lessors and has defaulted on payment to banks and oil marketing companies. A sum of `4,000 core is to be paid to vendors and other business partners immediately. “Please note that the current status of our engagement with the lenders and other related matters shall be placed before the Board in the meeting scheduled for tomorrow morning, where the Management will seek guidance from theBoardonthenextstepsforward,”Dube said. Around 300 of Jet’s 1,100strong pilot union, the NAG, gathered at the Andheri headquarters on Monday demanding unpaid dues and made an appeal to the Prime Minister and lenders to save the airline. “We want to request the PM to interveneandsave20,000jobs here and also appeal to the banks to release the much needed funding forthe airline. Wewanttheairlinetofly,”Asim Valiani, vice-president, NAG, said. Continued on Page 2 ● TRADE DATA Exports grow 11% in March, 9% in FY19 FE BUREAU New Delhi, April 15 MERCHANDISE EXPORTS GREW 11% in March, against 2.4% in the previous month, driving up outbound shipment inthelastfiscaltoarecord$331 billion.Butgoodstradedeficitin FY19 rose to $176.4 billion. Detailed report on Page 2 `42K-CR BURDEN Discoms’ dues to power cos rise 20% ANUPAM CHATTERJEE New Delhi, April 15 WHILE POWER GENERATION units with combined capacity of 40 gigawatts (GW) are stressed and the sector is still grapplingwith the fall-out of several years of muted demand growth,state-run discoms’ dues to the power producers continue to rise. According to data available with the power ministry’s ‘PRAAPTI’portal,the discoms' dues to 17 generators stood at Outstanding amounts by discoms* to gencos (` crore) 34,122 36,348 38,518 Sept 2018 Oct Nov Overdues^ to gencos 39,422 40,698 41,707 Dec Jan 2019 Feb *At ends of the respective months, 2019 1,788 8,420 5,969 NTPC (` crore) Adani Power 1,152 1,140 GMR Sembcorp NHPC ^Over 60-days defaualt `41,707 crore at February 2019-end, up a fifth from the level a year ago and 15% higher than at the end of August 2018. Of these dues, over half — `23,879 crore to be precise — are termed“overdues” due to payment default of 60 days or more. The dues include those to independent power producers (about 57% of the total) and state-run utilities like NTPC, DVC and NHPC. Continued on Page 2 FAIR COMPENSATION EU approves tougher copyright rules in blow to Google, Facebook FOO YUN CHEE Brussels, April 15 GOOGLE WILL HAVE to pay publishers for news snippets and Facebook filter out protected content under new copyright rules aimed at ensuring fair compensation for the European Union’s $1trillion creative industries. EU governments on Mondaybacked the move launched by the European Commission two years ago to protect Europe’s creative industries, which employ 11.7 million people in the bloc. “When it comes to completing Europe’s digital single market, the copyright reform is the missing piece of the puzzle,” the commission’s president Jean-Claude Juncker said in a statement. Under the new rules, Google and other online platforms will have to sign licensing agreements with musicians, performers, authors, news publishers and journalists to use theirwork. People protest against the copyright bill in Leipzig, Germany recently The European Parliament gaveagreenlightlastmonthto a proposal that has pitted Europe’s creative industry against tech companies,internet activists and consumer groups. Wikipedia blacked out several European sites in protest last month, while the change was opposed by Finland, Italy, Luxembourg,the Netherlands, Poland and Sweden. But 19 countries, including France and Germany,endorsed the revamp, while Belgium, EstoniaandSloveniaabstained. Under the new regime Google-ownedYouTube,Facebook’s Instagram and other sharing platforms will have to install filters to prevent users from uploading copyrighted materials. Google said the new rules would hurt Europe’s creative and digital economies, while critics said it would hit cashstrapped smaller companies rather than the tech giants. Continued on Page 2
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