OPINION, P6 ECONOMY, P3 SUNIL JAIN Pre-Covid slide in consumption quite worrying DISINVESTMENT TARGET TWEET Govt has enough funds to deliver good governance, failure linked to lack of intent RENU KOHLI INTERNATIONAL, P8 Govt to focus on strategic stake sales: DIPAM secretary Elon Musk taunts the SEC amid surge in Tesla stock price NEW DELHI, SATURDAY, JULY 4, 2020 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOL. XLVI NO. 107, 14 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: 36021.42 ▲ 177.72 NIFTY: 10607.35 ▲ 55.65 NIKKEI 225: 22306.48 ▲ 160.52 HANG SENG: 25373.12 ▲ 248.93 `/$: 74.64 ▲ 0.37 `/€: 83.90 ▲ 0.84 BRENT: $42.61 ▼ $0.53 GOLD: `248227.00 ▲▼ `54.00 INDIAN VACCINE MORE RESTRICTIONS ICMR bats for miracle timeline Ban on Chinese power equipment You can’t kill our soldiers and yet we create jobs in your country, not ours: Power minister RK Singh gets tough RK Singh ANUPAM CHATTERJEE New Delhi, July 3 55,608 55,291 53,986 58,354 IN WHAT COULD the biggest economic retaliation step against China among a slew of such moves taken by New Delhi recently,including stringent Customs scrutiny and banning of assorted Chinese apps in the wake of a shortlived,bloody border stand-off, power minister RK Singh on Fridaysaid a complete banwill beinplaceforthwithonimport of power equipment from the neighbouring country. The ministersaid all equipment imported for use in the powersupplysystemwould be tested in the country to check for embedded malware, Trojans orothercyberthreats.Any import of equipment from “priorreference”countrieswill require priorpermission of the government,theministersaid, even as he reiterated that such 55,987 Total 71,570 Import of power equipment (` cr) FY14 FY15 FY16 FY17 FY18 FY19 21,235 19,682 19,754 19,301 19,569 22,679 From China FY14 FY15 FY16 FY17 FY18 FY19 FY20 (April-Dec) Total imports Imports from China 50,822 16,111 permission won’t be available for either China or Pakistan, a perenniallyhostile neighbour. China has over the last few years been a major source of power equipment for India, with a share roughly a third of thetotalimportedmachinesin terms of value. Imports of these capital-intensive machines have been rising at a fast rate despite sufficient, if not surplus,domestic capacity and India being a serious exporter of such equipment. Chinese banks and financial institutions have liberally given long-term credit facilities to India’s power companiestopromotethebusinessof thecountry’sequipment manufacturers and this has indeed worked for that country. Imports from China were worth over `21,000 crore in FY19 and in excess of `16,000 crore in April-December FY20 (see chart). It is not immediately clear if the Indian power producers which have already tied up with Chinese equipment suppliers will get a waiver or a carve-out from the latest decision.As much as 9,570 MW of the currently under-construction power plants — all from the private sector — have contracted with Chinese companies for supplying boilers,turbines and generators. Total under-constructioncapacityis 15,861 MW, of which 12,245 MW is in the private sector. Continued on Page 2 Even an accelerated time-frame is 6-8 months. ICMR move to cut this to 6-8 weeks is a cause of some concern Prime Minister Narendra Modi with Army officers during his visit to Ladakh on Friday The City sedan is the talk of the town, in the age of SUVs The fifth-generation City is the largest sedan in its segment—bigger than Hyundai Verna, VWVento, Maruti Ciaz, Skoda Rapid and Toyota Yaris. It looks as premium as the Civic. ■ Motobahn, P9 ‘Our Krishna plays the flute, also uses Sudarshan Chakra’ Says India’s enemies have seen the ‘fire and fury’ of its armed forces during surprise visit PRESS TRUST OF INDIA Leh/New Delhi, July 3 SENDING A STRONG message toChina,PrimeMinisterNarendra Modi on Friday said the era Shree Cements’valuations are unjustified SRCM’s is the most costly cement stock globally; excessive optimism built into key valuation drivers though growth has been tapering; ‘Reduce’ retained with TP of `14,800 ■ Investor, P13 QuickPicks April 8-June 30: Over `62,000 cr disbursed as direct tax refunds THE INCOME-TAX department on Friday said that it has issued refunds worth `62,361 crore during the April 8 to June 30-period, reports fe Bureau in New Delhi. The department processed 20.44 lakh cases within the 56 weekdays in this period. The government on April 8 had announced that it would release pending income-tax refunds to help businesses and individuals tide over the potential cash flow issues due to lockdown. PAGE 2 Scheduled international flights suspended till July 31: DGCA AVIATION REGULATOR DGCA said on Friday it was extending the suspension of scheduled international passenger flights in India till July 31, but added that some international scheduled services on selected routes may be permitted on a case-to-case basis, reports PTI. Scheduled international passenger flights were suspended in India on March 23 due to the coronavirus pandemic. Earlier, a June 26 circular had stated scheduled international passenger flights will remain suspended till July 15. Uber gives up Mumbai office space; move unlikely to hit jobs UBER IS giving up its office space in Mumbai as part of the US-based firm’s decision to shut 45 offices globally, sources in the know said, reports fe Bureau in New Delhi. The move is unlikely to impact jobs as employees have shifted to working from home and it continues to be “business as usual,” they said. Uber India did not comment on the matter. However, a company spokesperson said: “Uber continues to provide a high level of service to all its riders in Mumbai.” PAGE 4 Softer stand on local data storage FE BUREAU New Delhi, July 3 THE GOVERNMENT WILL set up a regulator and have a new lawforthee-commercesectorif What the draft policy proposes ■ Alaw to regulate info ecommerce players can store, transfer and process ■ Aregulator for ecommerce; govt to have power to act against a player on national security ground ■ Periodic review of Indian users’ data stored by ecommerce companies abroad Some earlier plans junked ■ No mention ofgiving control offirms to domestic founderswith even a small holding and allowing 49% FDI in etailers oflocally-produced items (barring food) a draft policy being finalised by the Department for Promotion of Industry and Internal trade (DPIIT) is finally approved, a source said. Softening its stance on mandatory local data storage proposed in an earlier draft ecommercepolicyannouncedin February2019,theDPIIT’snew draft policy has suggested a comprehensive, periodic audit of the storage locations of players like Amazon, Flipkart and those that store Indian users’ data abroad, said the source. These players will have to build in adequate safeguards at the specified storage locations as welltoensureprivacyoftheuser isn’t compromised. Butthenewdraftpolicysuggests restrictions on cross-border flow of sensitive information, such as those relating to defence or medical records,etc, without formal authorisation. The proposed ecommerce law will likelyspecifythe data these companies can use, store or transfer.The government will have unrestricted access to any datastoredbytheplayersorany ecommerceactivityongrounds of national security. Continued on Page 2 TIKTOK Downloads surge for local substitutes SANKALP PHARTIYAL New Delhi, July 3 INDIANTECHAND entertainment firms are looking to capitalise on sudden opportunities arising from a government ban on Chineseowned apps, including thewildlypopular TikTok,with one rival video app saying it had added 22 million users in 48 hours. India this week outlawed 59 Chinese-owned apps including TikTok and Tencent's WeChat, in what was described as a “digital strike” AP MODI WARNS CHINA E-COMMERCE Special Features ■ ICMR on Wednesday FE BUREAU New Delhi, July 3 against China bythe country’s technology minister. The move followed a confrontation between India and China at a Himalayan border site, which left 20 Indian soldiers dead. With 200 million Indians users, TikTok, which features a simple user interface, background music options and various special effects,was a burgeoning force in the nation's social media scene and the ban left its fans scrambling for options. Continued on Page 2 of expansionism is over and that India’s enemies have seen the “fire and fury” of its armed forces as he made a surprise visittoLadakh,inthemidstofa tense border standoff between Indian and Chinese armies in a numberof areas in the region. In an address to troops, Modi paid glowing tributes to the 20 Indian soldiers killed in the Galwan Valley clashes and saidtalesofthebraveryandvalour of the armed forces are echoing in every part of the country. “Bharat Mata’s ene- mies have seen your fire and fury,”Modi said in an apparent reference to the Galwan Valley clashes.Hesaidbraveryisaprerequisite forpeace and that the weak can neveraccomplish it. Theprimeministersaidthe world has taken note of India’s strengthduetothe“exemplary bravery”of the armed forces in the recent weeks, adding history is proof that “expansionists” have either lost or perished. Continued on Page 2 THEINDIANCOUNCILofMedical Research (ICMR), on Wednesday,wrote to 12 hospitals,includingtheAllIndiaInstitute of Medical Sciences (AIIMS),Delhi,tofast-trackclinicaltrialoftheCovid-19vaccine candidate BBV152, developed byBharatBiotechInternational Limited,aHyderabad-basedvaccinemanufacturer.ICMRhasset a deadline of July 7 for recruitment for the trial,stating that a launch for public health use is beingtargeted byAugust 15. ICMR envisages a 5-6 week periodforthecompletionofthe trialofCovaxin(thevaccinecandidate’s brand name).This is a significantly shorter timerframe from WHO’s projection thatavaccinemayonlybeavailable in the next 12-18 months. “Atthemoment,wedon’thavea proven vaccine, but if we are lucky there will be one or two successfulcandidatesbeforethe end of this year,” WHO’s chief Intel Inside FE BUREAU Intel invests in RJio Intel Capital on Friday became the 12th global investor to pick up a stake in Jio Platforms. It picked up a 0.39% stake in the digital platforms company for an investment of `1,894.50 crore. With this, Reliance Industries has raised a total of `1,17,588.45 crore in over two months by selling 25.09% stake in its subsidiary firm. Full report: P4 RIL transactions announced Deal announcement Investors in Jio Platforms Investment (` cr) Equity stake (%) July 3, 2020 April 22, 2020 May 4, 2020 May 8, 2020 May 17, 2020 May 22, 2020 June 5, 2020 June 5, 2020 June 7, 2020 June 13, 2020 June 13, 2020 June 18, 2020 July 3, 2020 Facebook Silver Lake Vista Partners General Atlantic KKR Mubadala Silver Lake Partners ADIA TPG L Catterton PIF Intel Capital Total 43,574 5,656 11,367 6,598 11,367 9,094 4,547 5,684 4,547 1,895 11,367 1,894.50 9.99 1.15 2.32 1.34 2.32 1.85 0.93 1.16 0.93 0.39 2.32 0.39 Intel Capital Equity stake 0.39% Pvt banks (` crore) PSBs (` crore) 1,49,092 BoI Union Bank (I) Yes Bank 69,381 61,550 J&K Bank 32,878 7,672 IndusInd Bank 5,46,615 5,147 Kotak Mah. Bank 49,085 Total for 12 PSBs: 47,272 IDBI Bank 73,479 BoB 5,027 Total for 19 pvt banks: 2,04,358 Source: Capitaline much higher as Q4 results for six PSBs, which were merged with other banks during the quarter, have not been made public. Almost all PSBs saw a scientistSoumyaSwaminathan had recently said in a virtual conference. Covid19vaccinedevelopers AstraZenec, which is working withtheUniversityofOxford,is alreadyinPhase3ofhumantrial — where a drug/vaccine is observed for therapeutic effect andadverseeffectsoveralonger periodthanthepreviousphases — foritsvaccine candidate. Continued on Page 2 ● SATELLITE PUSH Bharti-led consortium wins bid for OneWeb FE BUREAU New Delhi, July 3 Continued on Page 2 1,894.5 Gross non-performing assets PNB ■ ICMR has stated that a launch for public health use is being targeted by August 15 Continued on Page 2 25.09 Invest Loan losses at PSBs weigh bigger than at private banks THE MARCH QUARTER was good for some public sector banks (PSBs), as many turned profitable after posting losses for several quarters in a row. Non-performingassets (NPAs), too,declined formost of them. Even so,the twelve public-sectorbanks(PSBs)recorded gross NPAs worth `5.47 lakh crore, more than twice the size of the bad-loan pile of 19 private banks, which stood at `2.04 lakh crore, showed data from Capitaline.The actual value of bad assets in PSBs is likelyto be developed by Hyderabad-based Bharat Biotech decline in absolute GNPA numbers, with the exception of Indian Bank and Canara Bank. 1,17,588.45 SBI ■ BBV152 has been SUNIL MITTAL-LED BHARTI Enterprises, in a consortium involving the UK government, on Friday won the bid for satellite firm OneWeb.The UK government and Bharti Enterprises will each invest $500 million in this satellite technology project. Bharti will also rope in other investors. Bharti will provide the company commercial and operational leadership and bring OneWeb a revenue base to contribute towards its future success. The deal will enable the company to complete construction of a global satellite constellation thatwill provide enhanced broadband and otherservices to countries around the world. Bharti Global, is an overseas arm of Bharti Enterprises, which operates out of London. “I am delighted that Bharti will be leading the effort to deliver the promise of universal broadband connectivity through OneWeb, with the active support and participation of the British government,” Sunil Mittal, chairman of Bharti Enterprises said. Q4FY20 NPAs SHRITAMA BOSE Mumbai, July 3 wrote to 12 hospitals, including AIIMS, Delhi, to fast-track clinical trial of the Covid-19 vaccine candidate BBV152 VIDEO CONFERENCING JioMeet hopes to Zoom past the competition SARITHA RAI Bengaluru, July 3 ZOOM,ONEOFthefewsuccess stories of the Covid-19 pandemic, now faces a new competitorinanappbackedbyAsia’s wealthiest person Mukesh Ambani. Ambani’s Reliance Industries,whichhasscoredbillionsof dollars of investments from Facebook to Intel Corp for its digitalbusinesses,haslaunched theJioMeetvideo-conferencing app after beta testing.The app hasalreadygarneredmorethan 100,000 downloads on the Google Play Store after becoming availableThursdayevening. LikeGoogleMeet,Microsoft Teams and other services, JioMeet offers unlimited highdefinition calls — but unlike Zoom, it doesn't impose a 40minute time limit.Calls can go on as long as 24 hours, and all meetings are encrypted and password-protected, the company said on the JioMeet website.The launch coincided with a nationwide ban on dozens of New Delhi popular apps from Chinese technology giants including ByteDance’sTikTokandAlibaba Group Holding’s UC Web, on grounds they threatened security and data privacy. JioMeet wentviralFridayonsocialmedia alongside the hashtag #MadeinIndia. The app is one facet of Ambani’s rapidly expanding digital empire,which includes India'slargesttelecomoperator with nearly400 millionusers. Continued on Page 2
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