OPINION, P6 ECONOMY, P2 MOHAMED A EL-ERIAN Post-pandemic economic leadership must begin in the US INTERNATIONAL, P8 EDITORIAL HISTORIC LOW SETBACK FOR FACEBOOK If govt is really planning to ask device-makers for source codes, it will leave them more vulnerable IMF projects sharp contraction of 4.5% in Indian economy WhatsApp Payments suspended by Brazil’s central bank NEW DELHI, THURSDAY, JUNE 25, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 99, 22 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: 34,868.98 ▼ 561.45 NIFTY: 10,305.30 ▼ 165.70 NIKKEI 225: 22,534.32 ▼ 14.73 HANG SENG: 24,781.58 ▼ 125.76 `/$: 75.73 ▼ 0.08 `/€: 85.54 ▼ 0.13 BRENT: $41.88 ▼ $0.75 GOLD: `48,369 ▲ `427 ● RAISING CAPITAL ICICI Bank mulls $3-bn share sale ICICI Bank Intra-day on BSE (`), June 24 390 375 379.15 348.40 360 345 330 Previous close: 376.05 Open Close BAIJU KALESH, ANTO ANTONY & MANUEL BAIGORRI Mumbai, June 24 ICICI BANK IS considering raising as much as $3 billion in a share sale as the lender seeks to bolster its capital ratios, according to people familiar with the matter. The Mumbai-based bank plans to start discussions with potentialadvisersfortheoffering soon, said the people, who asked not to be identified as the information is private. ICICI Bank is currently targeting a share sale as soon as September,though the timing could still change depending on market conditions,the people said. Continued on Page 2 EXPORT MARKET Apple eyes hub in India Company’s contract manufacturers Foxconn & Wistron apply under new production-linked incentive scheme KIRAN RATHEE New Delhi, June 24 INDIAIS SETtobecomeamajor production hub for exporting mobilephonesgoingbytheway global major Apple has reacted to the government’s `41,000crore production-linked incentive (PLI) scheme, applications for which were invited from ■ These units currently manufacture phones for Indian market Foxconn has a factory in ■ Under PLI scheme Chennai & phoneswould be Wistron in made for exports Bengaluru market 90% of jobs will be at worker level with salary levels of `22,000 beginningthis month. Sources said both Foxconn andWistron,theglobalcontract manufacturers for Apple have applied for the scheme.Among the local players, Lava, Dixon Technologies,andKarbonnhave applied so far. South Korean major,SamsungandFlextronics arealsoexpectedtosubmittheir applications shortly. Firms can apply till July 31 and by early August,theselectedfirmswillbe announced.Initially,five global and five local companieswill be selected to avail of the scheme. Both Foxconn and Wistron arealreadypresentinIndia,with the former’s factoryin Chennai and the latter’s in Bengaluru. Continued on Page 2 ■ Incentives under the scheme will be given for phones of $200 and above ■ In India, phones of $200 and above have a market share of just 2% CASE COUNT CUSTOMS CRACKDOWN Checks on Chinese imports: Delhi is India’s top Electronics players uneasy corona city now Consignments of even green channel importers, who normally get automatic clearance, are being inspected Authorised economic operators — green channel importers — get clearance automatically But customs authorities are physically checking even their consignments FE BUREAUS New Delhi/Kolkata, June 24 FE BUREAU New Delhi, June 24 THE SUDDEN MOVE of the customs authorities to carry out 100% checks of import consignments coming from China at the ports has thrown the domestic industry into a tizzyat a timewhen it’s still far from full recovery from the impact of lockdown. Though such a move by the authorities — understandably without any written instructions from the higher-ups in the government — would adversely affect several industrial sectors, the immediate pinch is being felt by the electronics player. What has spooked the industryisthatsuchchecksare being carried out on the consignments of even the AEOs (authorised economic operators) — green channel Importers on the edge as China supplies come under scanner importers — who under normal circumstances get clearance automatically without any examination based on theirsizeand pasttrackrecord. IMPORTERS REMAINED ON the edge on Wednesday, amid fear and confusion over an alleged crackdown by the authorities on consignments from China, even as senior central government officials insisted that no such order had been issued to target despatches from India’s biggest foreign supplier. Amid calls by private individuals and associations to boycott Chinese goods in the wake of Beijing’s misadventure in the Galwan valley, speculation of a crackdown has intensified since Tuesday when certain consignments from China were allegedly “held up” at the Chennai port. Continued on Page 2 Fitbit Versa 2: More essentials, right on your wrist Disruption comes at a time when industry is only at 40% of normalcy Industry appeals that if checks are required AEOs be exempted Available for `20,999, the Fitbit Versa 2 is a solid tracker that sports advanced health and fitness features along with 5-plus days of battery life. Not to forget the Alexa built-in feature ■ Gadgets, P9 THE UTTARAKHAND AYURVED Department will issue a notice to Patanjali seeking an explanation on how the firmgotthepermissiontomake Covid-19 medicine kits. “As per Patanjali’s application, we issued them licence. They did not mention coronavirus,weonlyapprovedlicence for immunity booster, cough and fever,” news agency ANI reported quoting a licence officerat the department.The official also said a companycannot publishadvertisementsinelectronic or print media without approval of the state licensing authority and an explanation will be sought on the same. Hours after Patanjali on Tuesdayclaimedtohavedeveloped medicines to cure the novel coronavirus, the Ayush ministry directed it to stop advertising and publicising suchclaimstilltheissueisduly examined. Continued on Page 2 Continued on Page 2 The corona region 1,20,000 90,000 60,000 66,602 Projections 2,596 4,645 Apr 14 Jul 01 Covid-19 insurance claims at `281 crore CHIRAG MADIA Mumbai, June 24 INSURERS HAVE RECEIVED morethan18,100claimsforan amount of `281 crore for the treatment of Covid-19 so far, according to industry executives.At 8,950, the number of claims is the highest from Maharashtra followed by the NCRat 3,470 as onJune 19. The average ticket size for a Covidclaimisaround`2-2.5lakh in urban areas and `50,00075,000 in semi-urban or rural areas. Where the condition of patient is serious and she/he has been admitted to the ICU, the claimsareintherangeof`6-8lakh. Officials at insurers say the amount claimed has not been veryhigh,relativetothenumber ofhospitalised,asinmanystates like Kerala and Telangana, a large number of patients have been treated in government hospitalsfree of cost. Continued on Page 2 INDIANEARS 15,000 DEATHS SEE PAGE 3 Army called in to man Delhi facilities as Covid cases surge INDIA REPORTED 16,000 new coronavirus cases on Wednesday, its highest daily increase since the outbreak began, and the government calledintheArmytomanage new treatment centres with thousands of additional hospital beds in New Delhi, reports Reuters. At more than 4,56,000 FAMILY FEUD Hindujas fight over letter dividing $11.2-bn fortune JONATHAN BROWNING & BEN STUPPLES London, June 24 A LETTER SIGNED by the four Hinduja brothers is at the centre of a legal dispute over the future of the family’s $11.2-billion fortune. The 2014 document says that the assets held by one brother belong to all, and that each manwill appoint the others as their executors.But now Srichand Hinduja, 84, the patriarch of the family,and his daughter,Vinoo, want the letter declared worthless. The dispute between the UK-based family came to a light in a ruling delivered on Tuesday by a London judge, whosaidthethreeotherbrothers, Gopichand, Prakash and Ashok,tried to use the letter to takecontrolofHindujaBank— an asset that was in Srichand’s sole name. Srichand and Vinoo want the court to rule that the letter should have “no legal effect” and cannot be used as a will, the judge said. She said Srichand had insisted as early as 2016 that the July letter doesn’t reflect his wishes and that the family’s assets should be separated. AlawyerforSrichanddidn’t respond to messages seeking comment. In a statement, the three brothers said the litigationwill have no impact on their business and that the proceedings “go against our founder’s and family’s values”. They said these principles have stood for decades, especially the idea Delhi Faridabad Jun 24 Mumbai Gurgaon 68,481 30,000 0 Uttarakhand govt to issue notice to Patanjali FE BUREAU New Delhi, June 24 ON WEDNESDAY, AS Delhi recordedanotherhighinterms ofdailyinfections,addingclose to 4,000 Covid cases, Mumbai added its lowest tally in 40 days. The Capital only was 1,879infectionsbehindMumbai.And,givenitsgrowthrate— Delhi’s dailyaverage growth of 5.9%isthriceofMumbai’s—it is expected to overtake Mumbai onThursday. But Delhi is not the onlycity to be reeling under high case burden, data indicate growth rates in the NCR region have been similar. Gurgaon registered a daily growth rate of 5.5%, Faridabad, on the other hand, has seen cases grow at 9.3% overthe last twoweeks. Continued on Page 2 Electronics industry works on thin stocks, so delays in clearance disrupt their production cycle CORONA CURE CLAIM Special Feature ISHAAN GERA New Delhi, June 24 Gopichand Hinduja IN DISPUTE ■ A 2014 document signed by the four Hinduja brothers says the assets held by one brother belong to all, and that each man will appoint the others as their executors ■ Now family patriarch Srichand Hinduja and his daughter Vinoo want the letter declared worthless ■ At a London court, Srichand and Vinoo have sought that the letter have “no legal effect” and not be used as a will that “everything belongs to everyone and nothing belongs to anyone”. “We intend to defend the claim to uphold these dearly held family values,” the three brothers said in an email. Continued on Page 2 New Delhi confirmed coronavirus cases so far, India is the fourth worst-hitcountry,behindthe US,BrazilandRussia,accordingtoaReuterstally.Casesare expected to keep rising as stategovernmentseasecurbs in place since lockdown was first imposed in late March. ■ Report on Page 3
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