OPINION, P2 MIND & GAMES Do you see green shoots? FE LINES HOW TO ENTERTAIN YOUR KIDS THIS SUMMER? MAYBE DON’T A peculiar problem In theAntarctic, penguin faeces, which produce nitrous oxide, are causing climate change Page 6 You can keep your family safe and sane by encouraging old-school play, embarking on some projects and, yes, even embracing boredom Page 10 ACROSS THE AISLE , P CHIDAMBARAM SPOTLIGHT Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM VOL .XVIII NO. 87 THE FALLEN IDOL FINANCIAL EXPRESS ON SUNDAY NEW DELHI SUNDAY, JUNE 28 2020, 18 Pages, `10 (Patna `11, Raipur `10) 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 E N N A I , READ TO LEAD H Y D E R A B A D , K O C H I , SINO-INDIAN TENSION Boycott China may take a digital route WHAT'S INSIDE ● As banning goods hurts domestic industry, govt could zero down on popular Chinese apps ■ LEISURE, P5 A fond farewell The pandemic has disrupted lives and posed huge economic challenges. Many businesses, unable to generate revenue, have been forced to shut shop. Here, we go down memory lane remembering some iconic spaces that have gone under from Mumbai to Manhattan FE BUREAU New Delhi, June 27 WITH TENSION AT the border and pressure mounting for some form of retaliation against Chinese products in the domestic market, the government could zero down on Chinese internet apps.Sources said within the government the thinking is that retaliation against Chinese products like mobile phones orcomponents imported from that country, which are used across industrial segments, tend to hurt domestic producers who do not favour such moves in the immediate and short-term. However, internet apps is onemarketwhereChinacanbe put under a tighter scrutiny. ■ WORDS WORTH, P4 Post-Partition liaisons Animosity At Bay puts a rare focus on a time when India, Pakistan resolved issues without much acrimony ODD & EVEN C H A N D I G A R H , CYBER WAR ■ There are about 500 million smartphone users in India and of these, around 66% use at least one Chinese app ■ TikTok, which is part of Chinese firm ByteDance, has about 600 million downloads in India ■ The govt is thinking of making storage of data within the country mandatory ■ Currently, TikTok does not have a server in India and the company says it stores data of Indian consumers in Singapore and not China For the record, there are about 500 million smartphone users in this country and of these, around 66% use at least one Chinese app. Chinese app TikTok, which is part of Chinese private company ByteDance, for instance, is quite popular among the younger lot for making and posting short videos. It has about 600 million downloads in India. However,recentlydue to the border tension with China, its popularity has hit a low. To make it difficult for Chinese apps to gain popularity in the country,the government is TOUGHER SCRUTINY ROHNIT PHORE thinkingofmakingintermediary guidelines in such a mannerwheresomestorageofdata becomesmandatorywithinthe country.Currently,TikTokdoes not have a server in India and the companysays it stores data of Indian consumers in Singapore and not China. However, government sources believe that by flagging security concerns, the government can make it mandatory for some companiestostoredatawithin thecountryeven,whileproviding flexibility to others in the internetappsspacetocontinue to store data overseas. THE GOVERNMENT ON Satur- QuickPicks OIL back in black: Net profit at `925.6 crore on lower taxes STATE-OWNED OIL India has reported a net profit of `925.64 crore for the March quarter as opposed to a loss last year as lower corporate tax offset a dip in oil and gas prices, reports PTI. Net profit in January-March at `925.64 crore compares with a loss of `208.54 crore in the same period a year back. PAGE 3 Irdai announces guidelines for Covid-19 policies INSURANCE REGULATORY and Development Authority of India (IRDAI) announced guidelines on Covid-19 standard benefit-based health policy and individual Covid-19 standard health policy, reports FE Bureau. Guidelines were issued for Corona Rakshak policy which is a standard benefit-based policy and Corona Kavach Policy, a standard health policy. day notified a proposed ordinance to bring urban aswell as multi-state cooperative banks under the RBI regulation and make it easier for them to access capital. The idea is to protect the interests of depositors and better scrutinise the affairs of these cooperative banks following the Punjab Maharashtra Cooperative (PMC) Bank crisis. The Banking Regulation Act (amendment) Ordinance enables cooperative banks to raise money via public issue and private placement, of equity or preference shares and unsecured debentures, subject to the central’s bank’s approval. Under the extant norms, cooperative banks’ access to capital is limited. In a statement, the government said: “The Ordinance seeks to protect the interests of depositors and strengthen cooperative banks by improving governance and oversight by extending powers already Data centre scenario Real estate occupied 8.2 Real estate to be occupied by data centres in FY19 m sq ft by data centres by FY25 2000-07 2008-10 2011-14 2015-19 m sq ft Bengaluru Mumbai 50 13 72 85 143 40 RISHI RANJAN KALA New Delhi, June 27 12 Area occupied (%) 6 DATACENTRES HAVE emerged as the new asset class in real estate, as India’s appetite for consuming data increases at a rapid pace and firms scramble to add more capacity for storage. More so in the present times, as work from home 15-20 City-wise built up area occupied by data centres (Mega Watt) L U C K N O W , $2.8-BN DEAL Carlyle to buy 20% stake in Piramal Pharma FE BUREAU Mumbai, June 27 INA$2.8-BILLION deal,Piramal Enterprises(PEL)willbeselling 20% stake in Piramal Pharma, which has been made a 100% subsidiary of PEL housing its pharmaceutical businesses, to affiliated entities of The Carlyle Group, the company announced on Saturday. CA Clover Intermediate II Investments, an affiliated entity of CAP V Mauritius, an investmentfundmanagedand advised by affiliated entities of TheCarlyleGroup,hasagreedto invest fresh equity capital for a 20% stake in Piramal Pharma. The transaction, which is one of the largest private equity deals in the Indian pharmaceutical industry, values the pharma business at an enterprisevalue of $2.8 billion and will have an upside component that could take the EV to $3.1 billion depending on the company’s FY21 performance. Equity value as on March 31 for 20% stake in Piramal Pharma would be about $490 million,or `3,700 crore. The final amount of equityinvestmentwill depend on the net debt, exchange rate and performance against the pre-agreed conditions at the time of closing of the deal. M U M B A I , Enhanced borrowing limit under MSF extended THE RBI HAS decided to extendtheenhancedborrowing facility provided tothebankstomeettheir liquidity shortages till September30. The RBI, as a temporary measure, had increased the borrowing limit of scheduled banks underthemarginalstanding facility (MSF) scheme from 2% to 3% of their Net Demand and Time Liabilities (NDTL) with effect from March 27, 2020. This relaxation, which was granted till June 30, 2020, has now been extended till September30. —FEBUREAU available with the RBI in respect of other banks to cooperative banks as well for sound banking regulation.” Delhi NCR 11 10 8 Chennai Hyderabad Pune Others Source: JLL India, Industry (WFH) has become the new normal and domestic consumption is rising, which further brightens the prospects for expansion. Analysts and market insiders point out that there is rise in interest from real estate, private equity (PE) and infrastructure funds to invest in data centres, as they anticipate growth in cloud services due to IoT, data localisation and launch of 5G, signifying more consumption. As per Ericsson’s mobility report (November 2019), India’s average monthly data traffic per smartphone is expected to increase from the current 7.2 GB to 24 GB by 2025. Besides, 500 million additional smartphone users are expected during the same time period. “India will probably reach the 781-MW milestone much before, maybe by 2022-23, as more land deals have happened. Deals are happening in Navi-Mumbai, Chennai,etc,and are likely to deliver in around three years,” JLL India head (data N E W D E L H I , P U N E GUARANTEED LOAN SCHEME CII for adoption of relaxed MSME tag FE BUREAUS New Delhi/Mumbai, June 27 CII PRESIDENT UDAY Kotak on Saturday said the industry body could represent to the government to relax the turnover and investment limits of MSMEs in sync with the revised definition to enable a muchwiderpool of businesses to tapthe `3-lakh-crore Emergency Credit Line Guarantee Scheme (ECLGS). Kotak,who is also the managing director of Kotak MahindraBank,saidMSMEsmustnot just rely on conventional sources of funding, such as banks and shadow lenders,but also tap venture capital and angel investors to bolster their equitybasetotideoverthedamaging impact of the pandemic. The government has pledged full guarantee for up to 20% additional, collateralfree working capital loans under the ECLGS. However, only borrowers with up to `25 crore outstanding as of February 29 and `100 crore annual turnoverwill be eligible. The government on Friday notified a decision to raise the annual turnover limit for a medium enterprise to `250 crore from `100 crore. Similarly, the investment limit to qualifyasamediumenterprise COVID-19 ❝ Indian savings are not going enough towards risk capital and we need to channelise risk capital available for this industry with a particular focus on the SME sector — UDAY KOTAK , CII PRESIDENT has been raised to `50 crore from `20 crore, announced as part of the `21-lakh-crore relief package in May. The latest definition will come into effect from July 1. “It’s a fair point, and the CII wouldcertainlyconsiderraising itbeforethegovernment,”Kotak saidataCIIwebinar,inresponse to a demand for implementing the revised MSME criteria. Q4 NUMBERS NTPC net falls 71% on higher taxes PRESS TRUST OF INDIA New Delhi, June 27 FE BUREAU New Delhi, June 27 SIX DAYS AFTER it recorded four lakh infections, India’s Covid-19 tally raced past five lakh on Saturday with the highest single-day surge of 18,552 cases, while the death toll climbed to 15,685, as per Union health ministry data. The caseload zoomed to 5,08,953, while 384 fatalities were recorded in the last 24 hours, the updated figure at 8 am showed. It took 110 days forcoronavirusinfectioninthe country to reach one lakh, while just 39 days more to go pastthefivelakh-markonJune 27.Thiswas the fourth consecutive day when coronavirus infection increased by more than 15,000. STATE-OWNEDNTPC reporteda 71.2% year-on-year (y-o-y) decrease in its standalone net profit to `1,252.4 crore in the three months ended March,as the company decided to settle pendingincometaxdisputesby opting under the government’s recent‘vivadsevishwas’scheme. NTPC’s profit before tax was up 23.9%y-o-yto`4,383.8crorein the quarter, but net profit was dragged down by the tax expense of `4,983.7 crore.The companyhadreceived`7,189.1 crore tax refunds in the correspondingquarterlastyear. ForfullyearFY20,the country’s largest power generator recorded a net profit of `10,112.8 crore, down 13.9% y-o-y as it paid `9,181.9 crore taxinthefiscalagainstarefund of`2,918.7croreinFY19.NTPC revenue from electricity sales increased 25.9% to `27,079.1 crore in the quarter even as the power company sold 63.5 billion units of electricity in the period, 1% lower than the corresponding periodlast fiscal. COVID-19 UPDATE 5,08,953 TOTAL CASES 15,685 DEATHS SO FAR 18,553 NEWCASES Data centres new asset class in realty Capacity addition K O L K A T A , Cooperative banks’ Highest single-day spike ordinance notified with over 18,000 cases FE BUREAU New Delhi, June 27 ● Capacity to double to 1,000 MW by 2025, accelerated by WFH during pandemic Statues are being seen as controversial symbols of divisiveness in current times. But what really defines a statue? Do we really need them? Page 7 centre advisory) Rachit Mohan told FE. In 2020, the most active markets are Navi-Mumbai and Chennai. In 2021, Bangalore, Hyderabad and Noida are expected to see more traction. Thebiggestchallengewouldbe that over the next 18 months, most cloud services firms will come back with their revised planswithmore space requirement,he added. Anotherconsultancy,CBRE India, in its latest report, projected that India’s data centre capacity will double by March 2025 from the present 500520 MW. It expects global players to continue to take interest in investing in India with focus on backing leading operators or funding prominent developers. Home minister Amit Shah and Delhi chief minister Arvind Kejriwal at a Covid-19 care centre in New Delhi on Saturday Dexamethasone part of treatment AN INEXPENSIVE, WIDELY usedsteroiddexamethasone was included in the treatmentprotocolsforCovid-19 patients in moderate to severe stages of illness among other therapeutic measures by the Union healthministryonSaturday. The updated protocol includes the advice to use dexamethasone as an alternativechoicetomethylprednisoloneformanagingmoderate to severe cases. The change has been made after considering the latest available evidence and expert consultation, the ministrysaid. — PTI Facebook to label all posts breaking rules, even Trump’s ASSOCIATED PRESS Oakland, June 27 FACEBOOK HAS SAID that it willflagall“newsworthy”posts from politicians that break its rules, including those from President Donald Trump.Separately, Facebook’s stock dropped more than 8%, erasing roughly $50 billion from its market valuation, after Unilever,a European company behind brands such as Ben & Jerry's and Dove,announced it would boycott Facebook ads through the end of the year over the amount of hate speechand divisive rhetoric on its platform. Later in the day, Coca-Cola also announced it joined the boycott for at least 30 days. ❝ The policies we’re implementing today are designed to address the reality of the challenges our country is facing... — MARK ZUCKERBERG, FACEBOOK CEO CEO Mark Zuckerberg had previously refused to take action against Trump posts suggesting that mail-in ballots will lead to voter fraud, saying that people deserved to hear unfiltered statements from political leaders. Twitter, by contrast, slapped a “get the facts” label on them. Until Friday,Trump’s postswith identical wording to those labelled on Twitter remained untouched on Facebook, sparking criticism from Trump’s opponents as well as current and former Facebook employees.
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