OPINION, P6 ECONOMY, P3 BIBEK DEBROY India’s 1954 trade deal with China favoured China INTERNATIONAL, P8 EDITORIAL ECONOMIC OFFENDERS LAW FORBES INTERVIEW Weed out obsolete 'offences', include emerging/hitherto excluded ones to overhaul Indian Penal Code Nirav Modi's assets worth `330 crore confiscated by ED Kanye West breaks ranks with Trump, vows to win presidential race NEW DELHI, THURSDAY, JULY 9, 2020 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOL. XLVI NO. 111, 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: 36329.01 ▼ 345.51 NIFTY: 10705.75 ▼ 93.90 NIKKEI 225: 22438.65 ▼ 176.04 HANG SENG: 26129.18 ▲ 153.52 `/$: 75.02 ▼ 0.08 `/€: 84.67 ▼ 0.19 BRENT: $43.25 ▲ $0.17 GOLD: `48764.00 ▲ `529.00 APP WARS KHARIF 2019 Desi TikToks have a long way to go A third of Fasal Bima claims not honoured (` crore) THE BOARD of ICICI Bank has approved a proposal to raise up to `15,000 crore, reports fe Bureau in Mumbai. The bank will raise funds through various options including private placements, preferential issue, qualified institutional placement (QIP) and further public offer. ICICI Bank has joined the league of banks raising capital to absorb Covid-19 shock. Kharif 2019 Claims 7,946 AIC Oriental IFFCO Tokio Total* (since Kharif 2016-17) Reliance General New India Claims Others 82,041 Unpaid 8.6% Total % Unpaid 1,331 10.4 66.0 1,098 99.0 1,043 93.7 943 92.3 3.2 2,776 15,137 31.3 (Data as on June 29; Source: Agriculture ministry *Rabi 2019-20 excluded as claims are in progress MISSES APRIL DEADLINE Cube Highways yet to pay NHAI for road assets SURYA SARATHI RAY New Delhi, July 8 SINGAPORE-BASED CUBE HIGHWAYS and Infrastructure, an active player in the highway space in India with over8,500-kmprojectsportfolio, hasn’t yet made the requisite upfront payment of `5,011croreandtakenpossession of the nine toll-operatetransfer(TOT) stretches,which it hadwon underauctions held in last November.The due date for making the payment was mid-April. Industry executives take Cube’s failure to stick to the deadline as sign that even the foreign road-sector players RULE ON FOREIGN STUDENTS Special Features Oracle bets on dual cloud region strategy India joins the US, Canada, Japan, Australia, South Korea and the European Union in having multiple Oracle Cloud regions that facilitate better disaster recovery and compliance ■ eFE, P9 QuickPicks Supreme Court recalls order allowing sale of BS-IV vehicles IN A setback for automobile dealers and customers, the Supreme Court on Wednesday recalled its March 27 order that allowed dealers to sell 10% of the unsold BS-IV vehicles over 10 days after the March 31 deadline, reports Indu Bhan in New Delhi. These vehicles could be sold outside the National Capital Region. Taking a strong stand, the apex court said that only those vehicles sold within the stipulated deadline and registered and whose details have been uploaded on the government’s e-portal, would be valid. PAGE 4 Monsoon session: Co-op banks, agri reforms top agenda EVEN AS the government weighs the option of holding the monsoon session of Parliament in the latter part ofAugust, it will use the earliest available opportunity to convert as many as Ordinances into legislation, including the ones on bringing cooperative banks under the RBI regulation and suspension of insolvency proceedings for one year against fresh default, reports fe Bureau in New Delhi. Management of Covid-19 pandemic and tensions at the border with China are likely to be flash points between the opposition and treasury benches. PAGE 2 I-T dept moves apex court in Bharti Airtel GST refund case THE INCOME tax (I-T) department on Wednesday moved the Supreme Court against the Delhi High Court’s May order that allowed Sunil Bharti-led Bharti Airtel to claim refund of `923 crore by rectifying its GST returns for July to September 2017, reports Indu Bhan in New Delhi. The refund was denied earlier by the revenue authorities. The HE said if the statutorily prescribed returns GSTR-2 and GSTR-3 had been operationalised by the government, Bharti would have known the correct the input tax credit (ITC) amount available to it in the relevant period, and could have discharged its liability through ITC. PAGE 4 Harvard, MIT sue US immigration authorities: Report PRESS TRUST OF INDIA New York, July 8 HARVARD UNIVERSITY AND the Massachusetts Institute of Technology(MIT) havesuedthe DepartmentofHomelandSecurityandthefederalimmigration agencyovernewguidelinesbarring foreign students from remaining in America if their universitiesswitchedtoonlineonlyclasses in the fall. A report in The Harvard Crimson said the two preeminent educational institutions filed a lawsuit in District Court in Boston Wednesday morning againstthetwofederalagencies. The lawsuit seeks a temporary restraining order and preliminary and permanent injunctive relief to bar the US DepartmentofHomelandSecurity and Immigration and Customs Enforcement from the enforcing federal guidelines thatwillforceinternationalstudents to leave the US. Harvard University Presi- ■ New guidelines bar foreign students from remaining in America if their universities switched to online-only classes ■ The institutions filed a lawsuit against the Department of Homeland Security and the federal immigration agency ■ The lawsuit seeks a restraining order and injunctive relief to bar the two agencies from enforcing federal guidelines dentLawrenceBacowsaidinan emailtoaffiliatesthatthe“order camedownwithoutnotice—its cruelty surpassed only by its recklessness.” Continued on Page 2 Cube won the bid in Nov, with `5,011 cr offer, against NHAI base price of `4,995.48 cr ToT-3 includes It has tied up funds from SBI, but did not manage to pay so far; the deadline was mid-April nine stretches with combined length of 566.27 km Three stretches in TN lockdown areas believed to be the reason highest bidder for the third TOT bundle with a combined length of 566.27-km, put together by the National HighwaysAuthorityofIndia(NHAI). with strong investor backing arefacingdifficultiesinmobilising funds at this juncture. Backed byI Squared Capital andawholly-ownedsubsidiary of the Abu Dhabi Investment Authority,Cubeemergedasthe Continued on Page 2 Mutual funds in June FE BUREAU Savers shun equity schemes Equity schemes saw their worst month in over 4 years in June, with net inflows at a pitiful `249 crore. The flows are 96% lower than the 12month average of `7,103 crore. Outflows were seen from multicap, largecap and value funds. Net monthly flows into equity schemes Net inflows/outflows (` crore) 25,000 20,000 241 15,000 10,000 42.5 0 -5,000 15.4 0.2 Post-ban (July 4) 6.5 10.6 60.3 15.1 4.2 3.3 Roposo TikTok ShareChat Chingari Mitron Others* *Includes people who do not have live-video sharing apps Source: Kalagato users had downloaded TikTok (see graphic) versus 15.4% for Sharechat,1%forRoposo,0.2% for Mitron and nothing for Chingari. On July 4,after the ban,TikTok was still there on 10.6% of phones (users can still use the app using a VPN) while Sharechatwasroughlythesame at 15%, Roposo jumped to 6.5%, Chingari to 4.2%, and Mitron to 3.3%. Intermsofthetimespenton theseapps,Kalagatodatashows users spent 52 minutes in a day on TikTok before the ban, and this was 10.2 minutes for Roposo, 9.4 minutes for Sharechat and 3 minutes for Mitron. Continued on Page 2 ● COVID CONTROL Cipla launches remdesivir, claims it is inexpensive FE BUREAU Hyderabad, July 8 5,000 cut is smaller at 5-10 bps and for shorter tenors. PHARMA MAJOR CIPLA has launched its genericversion of broad-spectrum anti-viral drug remdesivir (branded Cipremi), to be used on critically ill Covid patients in the hospitals.Claimed to be priced the lowest in the market, the product is launched under a licensing agreement with the US-based Gilead Sciences Inc. Gilead had earlier decided to build a consortium of manufacturing partners to maximize global supply of remdesivir. While Cipla did not disclose the price, industry sources said that Cipremi is likely to be priced at `4,000 per vial even while Hetero has priced its remdesivir brand Covifor at `5,400 per 100 mg vial and Mylan’s Desrem is priced at Rs 4,800. Continued on Page 2 Continued on Page 2 -1,370 March 2016 June 2020 Source: Amfi CUSTOMER SERVICE SBI, HDFC Bank cut loan rates FE BUREAU Mumbai, July 8 SBI and HDFC Bank MCLR SHORT-TERM CREDITAS also loans for homes and cars will become more affordable with State Bank of India (SBI) and HDFC Bank lowering interest rates. Over the past several months,bankshavebeenmaking it cheaper for customers to borrow but credit offtake remains sluggish at around 6% year-on-year. While HDFC Bank has 7.5 8.0 7.0 (%) SBI 7.3 7.65 Crop insurance schemes INAS 300, the premier fighter squadron of the Indian Navy, also known as the White Tigers, celebrates its diamond jubilee in New Delhi 7.2 7.55 Continued on Page 2 FIGHTING FIT 7.45 ICICI Bank gets nod to raise up to `15,000 crore AFTER THE JUNE 29 ban on ChineseappslikeTikTok,several local wannabes have reported impressive downloads of their products. Roposo, for instance, said it had 100 million downloads,Trellsaidithad45million, Mitron 25 million,Chingari 15 millionandMojhad5.3million. While this is impressive,it is still not a patch on TikTok, though, to be fair to the local substitutes, it is early days yet and it takes time for users to switch loyalties.But,at its peak, according to SensorTower,TikTokhadatotalof2billiondownloads,ofwhich500millionwere from India. Whatmatters,though,isnot downloads,buttheactualuseof theapp.AccordingtoComScore data for India,TikTok had 145 million unique visitors per month between January and May 2020. Likee, another Chinese app,had 30 million users, while Sharechat had 18 million and Roposo just 1.6 million. Comscore data forthe post-ban period is not availableasyet. Kalagato has data for the time spent per app as well as a proxyfortheuser-base,bothfor the pre-ban period (May 11) as well as after the ban (July 4). Comparisons cannot be made across databases, though, as theycompiledatadifferently.In thepre-banperiod,accordingto Kalagato,42.5%ofsmartphone One year Two years Three years HDFC Bank 6.95 7.3 THE CENTRE HAS written to state governments urging them to invoke the penalty clause on insurance companiesthathavedefaultedonsettling the claims made byfarmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY). The move follows reports that insurers are yet clear as much as a third of the over `15,000 crore claimed by farmers as crop insurance for the Kharif 2019 season, even as the new summer season began on July 1 ISHAAN GERA New Delhi, July 8 Overnight One month Three Six months months 7.2 PRABHUDATTA MISHRA New Delhi, July 8 The delay in claims settlement by insurance companies underthe PMFBYandWeather Based Crop Insurance Scheme (WBCIS) have been taken seriously by the government in view of the hardships faced by farmers during the lockdown period and the slump in demand for agriculture produce, according to an official source. While four public sector insurers — AIC, Oriental, New India and National — together were yet to settle claims of `2,589 crore as on June 29,six companies in the private sector could not clear `2,142 crore by then, official data shows. AIC, the largest PMFBY player, has acquitted itself by disbursing`7,117crore(83%) to farmers against claims of `7,946 crore by June 29. 6.65 THE DEPARTMENT for Promotion of Industry & Internal Trade has asked ecommerce companies to start displaying country of origin for all new product listings on their platforms, possibly by August 1, reports fe Bureau in New Delhi. Officials at the department have also directed firms to add the country of origin to old product listings by September end or early October, a source aware of the discussions told FE. Pre-ban (May 11) % of phone users with these apps 40.9 1. 6.65 7.15 States told to levy penalty on defaulting insurers Display products’ and transfer country of origin: proceeds to farmers DPIIT to firms Users spent far more time on TikTok than on local apps 6.65 7.1 THE CABINET on Wednesday approved a proposal to infuse `9,950 crore this fiscal into three state-run general insurers—National, Oriental and United— to shore up their precarious capital base, and formally called off a proposed merger of these firms in the wake of the Covid-19 outbreak, reports fe Bureau in New Delhi. 7.0 IN THE NEWS Cabinet: Infusion of `9,950 crore into 3 insurers 6.5 6.0 effected a chunky 20 basis points cut in the MCLR— marginalcostoffunds-basedlending rate — across tenors, SBI’s TALK AT HUDSON INSTITUTE Chinese hacking, pressure put Americans ‘over a barrel’: FBI chief CHRIS STROHM & PETER MARTIN Washington/London, July 8 THE CHINESE GOVERNMENT uses an extensive array of tactics to steal US trade secrets and influence US politics, the FBI’s director Christopher Wray said. “All of these seemingly inconsequential pressures add up to a policy-making environment in which Americans find themselves held over a barrel by the Chinese Communist Party,” Wray said Tuesday in remarks to the Hudson Institute in Washington. He said interference in the US includes widespread cyber espionage, threatening Chinese nationals living inAmerica and co-opting associates of political officials to advance policies that benefit China. China has previously denied using such tactics. IF YOU ARE AN AMERICAN ADULT, IT IS MORE LIKELY THAN NOT THAT CHINA HAS STOLEN YOUR PERSONAL DATA —CHRISTOPHER WRAY FBI DIRECTOR The FBI director made clear that he’s signed on to an escalating Trump administration push against China. He said his remarks will be followed up in coming weeks by attorney-general William Barr and secretary of state Michael Pompeo, and the speech was featured live on the State Department’s website. Wray said a Chinese government initiative called ‘Foxhunt’ is a “rogue law enforcement” operation to suppress dissidents and critics. Chinese officials seek out hundreds of Chinese nationals living in the US and pressure them to return to China, he said. In one case, he said, a man’s family was told he had only two choices — return to China or commit suicide. Wray also offered a time-honoured suggestion to anyone who believes they’re being manipulated or threatened by China: Call the local office of the Federal Bureau of Investigation, he said. –BLOOMBERG
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