OPINION, P6 ECONOMY, P2 SHOBHANA SUBRAMANIAN UDAN has failed to take off, govt must relook it RECOVERY ROAD LONG PROMISED Economic activity is up, but could fall as more cities lock-down; besides, structural problems persist SATYENDRA PANDEY INTERNATIONAL, P8 India to play key role in global economic growth revival: Modi Musk says Tesla is ‘very close’ to developing fully autonomous vehicles NEW DELHI, FRIDAY, JULY 10, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 112, 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: 36,737.69 ▲ 408.68 NIFTY: 10,813.45 ▲ 107.70 NIKKEI 225: 22,529.29 ▲ 90.64 HANG SENG: 26,210.16 ▲ 80.98 `/$: 75.00 ▲ 0.03 `/€: 85.02 ▼ 0.35 BRENT: $43.40 ▲ $0.11 GOLD: `49,054 ▲ `89 ANUPAM CHATTERJEE New Delhi, July 9 APPREHENDING A BIG financial blow to its power discom GUVNL, the Gujarat government has reversed a December 2018 resolution, agreeing to providerelieftothreeimported coal-based power plants run by Adani, Tata and Essar in the state. Now, after taking into account the fall in global coal prices, the state will revise the terms and conditions of the PPAs in new supplementary agreements,wherethetariffcalculation will be done on the basis of fresh parameters. “…GujaratUrjaVikasNigam (GUVNL) is hereby directed to draft the supplemental PPAs with EPGL (Essar) and CGPL (Tata) consistent with the above decision and the same shall be sent to the state government forapproval on a case to case basis,” the new resolution,reviewed by FE said. The state has already filed recall petitionwith the Central Electricity Regulatory Commission seeking cancellation of the relief allowed to Adani Power under the supplementary PPA it has already signed. DELHIAND MUMBAI continue to account for a fourth of India’s Covid-19 infections, but the emergence of new hotspots is worrying; in most of them, lockdowns continue in some form oranother.Ifyou take the top-seven districts in the country other than Delhi, Mumbai, Pune and Chennai, which were anyway reporting largenumbersofinfectionsfor several months anyway,infection levels have risen 7.6 times over the past month. While they accounted for 3.2% of India’s infections a month ago, this is now up to 8.8%. Ifthisnumberisfrightening, chancesareitwillgetalotworse. In all likelihood, the increased infections are a direct result of increasedtesting—testingdata isnotavailableformostofthese cities.Bengaluru was reporting just about six newcases perday in May — by the end of May, it had 291 cases. Continued on Page 2 Continued on Page 2 State has filed recall petition on latest agreement with Adani Tariff hikes to be lesser than `0.30-0.80/unit estimated earlier 9.9 12.7 25.1 23.6 8,049 7,008 « Ebitda margin (%) 13 150 bps « 10,025 10 « 4 ing business would improve by the third quarter.“We believe it -2,224 -685 3,466 2,795 FY20 has bottomed out and we should now start tracing our path to growth,” he said. TherevenueimpactofCovid hadplayedoutbroadlyalongthe lines anticipated, he observed. “It affectedallverticalswiththe exception of life sciences and healthcare,with varying levels of impact,” he said. Milind Lakkad, chief human resource officer, TCS, said,the recent visa proclamations in the US were unfortunate and unfair. FY19 Chg (%) Operating Net profit income 9,048 39,946 38,322 Revenue « TATA CONSULTANCY SERVICES on Thursday reported a sharp contraction in revenues and earnings for the June quarter with business disrupted by Covid.The net profit fell a sharp 13% sequentially to `7,008 crore, missing the Bloomberg consensus estimate,while revenuesdeclined4%sequentially to `38,322 crore,also a miss. However, the management was confident with Rajesh Gopinathan,CEO and MD,say- (` cr) Q4FY20 Q1FY21 « FE BUREAU Mumbai, July 9 FY18 TCS net profit falls 13% in Q1 (India's trade balance with Vietnam, $ m) FY17 CORONA BLUES FRESH CONCERN 2,706 Cyclists enjoy their day out amid coronavirus-induced lockdown at Vijay Chowk, New Delhi, on Thursday EXPRESS PHOTO: TASHI TOBGYAL FY16 FREEWHEELING SPIRIT Key imports (FY20, $ m) Electronics/ electricals 4,010 Copper and products 447 Total Certain imports capital goods 368 from Inorganic Vietnam chemicals etc 347 Iron & steel and products 334 7,283 Continued on Page 2 With 25,000 cases daily, India to hit 8-lakh mark FE BUREAU New Delhi, July 9 WITH INDIA ADDING nearly 25,000 cases daily to its tally, the eight-lakh mark is imminent. Two-thirds of these cases have been added in the last one month. While it took India nearly three months to add the first COVID-19 UPDATE 7,67,296 TOTAL CASES 21,129 DEATHS SO FAR 24,879 NEWCASES India’s trade balance with Vietnam swang from a surplus of $2.8 billion to a deficit of $2.2 billion,accordingtoofficialdata. While India’s imports from the south-eastAsiannationjumped from $5 billion in FY18 to $7.3 billion in FY20, its exports crashed from $7.8 billion to $5.1 billion during this period. This was also the period (FY18-20)whenBeijing’strade war with Washington hit a peak and China was scouting fordestinationstodivert apart of its supplies from theAmerican market. Even India has been pressuring China in recent years to trim a huge bilateral trade imbalance in favour of the neighbour. These may have promoted China to divert its supplies to India through some Asean members and Hong Kong by abusing the rules of origin of imported products, analysts have pointed out. But this also makes itverydifficult forIndia to target China effectively, as Beijing can bypass NewDelhi’s tariff and non-tariff measures by diverting its supplies through these destinations. Vietnam is a part of the 10member Asean with which New Delhi has a free trade agreement (FTA). Continued on Page 2 Trump’s niece describes him as still a child, seeking attention US PRESIDENT TRUMP’S NIECE describes him in a much-awaited tell-all book as a child in an adult’s body, someone psychologically brutalised and damaged by his “sociopath” father and who developed defences of anger and distrust to mask his own chronic insecurities. Too Much and Never Enough: How My Family Cre- MARY L TRUMP DESCRIBES DONALD TRUMP AS SOMEONE PSYCHOLOGICALLY BRUTALISED AND DAMAGED BY HIS 'SOCIOPATH' FATHER AND WHO DEVELOPED DEFENCES OF ANGER AND DISTRUST TO MASK HIS OWN CHRONIC INSECURITIES ated the World’s Most Dangerous Man, by Mary L. Trump, presents a portrait of the president familiar to readers of other books as a transactional narcissist and accidental commander in chief. But Mary, a clinical psychologist, offers a particularly dark picture of President Trump’s fatherand her grandfather,Fred Trump Sr. “From the beginning,Fred’s self-interest skewed his priorities,” Mary writes.“His care of onelakhcases,thelastonelakh have been added in just four days. In another month, the number of infected could reach anywhere between 1718 lakh and at that point, the countrywould be adding close to 50,000 cases daily. As per a paper by researchers at MIT, if there is no medical breakthrough, including vaccinations, India will be adding 2.9 lakh cases per day by February 2021. Althoughthegrowthrateof cases has come down, positivity rates have increased quite significantly.On July 9,India’s positivity rate — new cases uponnewtests—was9.3%,up from 7% a month back. Enrolment falls to a tenth from February to April SURYA SARATHI RAY New Delhi, July 9 IF THE EPFO payroll data showed a big 20% drop in the numberof‘contributingmembers’in April over the previous month due to the Covid-19 lockdown,thevirtualcessation of economic and trading activities during the month and the continuing slack in most sectors have had a more ruinous impact on jobs in the unorganised sector. Net monthly additions to thePradhanMantriShramYogi Maandhan (PMSYM), the subsidised pension scheme for workersintheunorganisedsector,fell sharplyfrom 1.9 lakh in February to 1.1 lakh in March and then witnessed a precipitousdeclinetolessthan18,000 Pension scheme for the unorganisedsector workers Addition during the month 12,00,000 each in April and May. Worse, reflecting the enormity of the crisisthatengulfsthecountry’s big and unwieldyinformal sector, net addition to the scheme inJunewasjust14,484.Mostof the job losses/income falls that the data represents look irretrievable at least for the time being,given that till the eighth ofthismonth,freshenrolments under the PMSYM was less than 2,400. The pension scheme was launchedinFebruary2019with a view to giving a modicum of social security cover to the likes of domestic workers, rickshaw pullers,cobblers and other lowincomeworkersintheunorganised sector,which employs over 85%ofthecountry’sworkforce. Continued on Page 2 10,19,379 10,00,000 Total enrolment so far (since Feb 2019 launch) 44.17 lakh 8,00,000 6,00,000 4,00,000 14,484 2,00,000 0 March 2019 June 2020 ● YES BANK CASE COVER TO COVER MAGGIE HABERMAN & ALAN FEUER July 9 5.4 Source: State webiste, Covid19India Trade with Vietnam: From big surplus to large deficit AFTER SINGAPORE AND Hong Kong, Vietnam has emerged as the third Asian trade partner,which counts on massive Chinese investments, to turn its usual trade deficit withIndiaintoadecentsurplus in a span of just three years. Between FY18 and FY20, 3.7 8.8 Bengaluru Guwahati Kalyan- North 24 South 24 Aurangabad Hyderabad Dombivalli Parganas Parganas CHINA FACTOR BANIKINKAR PATTANAYAK New Delhi, July 9 5.9 1,186 4,353 24 3.2 317 1,726 Share of 7 districts in India's infections (%) 5,357 4.1 ISHAAN GERA New Delhi, July 9 Gujarat to draft new supplemental PPAs with Tata and Essar July 09 1,977 11,755 June 10 Increase in times 423 To revise terms and conditions of PPAs; tariff calculation on fresh parameters CENTRES OF INFECTIONS Number of cases in fast-growing new hotspots rise 7.6 times 2,371 23,358 PUNJAB NATIONAL BANK, the country’s second-largest state-run lender that has been hit bya slewof recent scandals, on Thursday reported another loan fraud. A fraud of `3,690 crore is being reported to the Reserve Bank of India in the accounts of Dewan Housing Finance (DHFL), the bank said in an exchange filing. The lender has set aside `1,250 crore of provisions pertaining to this incident,it said. DHFLisafinancierseizedby theregulatorinNovember2019 as India stepped up efforts to contain a brewing shadow banking crisis. PNB in June reportedabout`73,500croreof gross bad loans for the quarter ended March 31 — 14.21% of total advances down from 15.5% the previous quarter. This is the fourth scandal PNB is complaining of in three years.In 2018,it alleged it was swindled of $2 billionbya jeweler who colluded with bank officials. It reported two more incidents stemming from improper loans last year. PNB managing director SS Mallikarjuna Rao had said in June the lender is clearing a backlog of provisions and expects to post net income in everyquarterofthefiscalstarted April 1. — BLOOMBERG Bengaluru infections rise 24 times in 30 days! 12,509 ANIRBAN NAG Mumbai, July 9 Guj revokes PPA relief to power units PENSION SCHEME TRACKING COVID 522 PNB reports `3,690-crore loan fraud DECLINING COAL PRICES 2,085 8,485 ● DHFL ACCOUNTS his children, such as it was, reflected his own needs, not theirs. Love meant nothing to him, and he could not empathize with their plight, oneofthedefiningcharacteristics of a sociopath; he expected obedience,thatwas all.” Fred Trump Sr. wanted his eldest son, Fred Jr. — Mary’s father — to be a “killer,” a high form of praise that the president himself has often used to describe people he respects. Continued on Page 2 `2,800-cr assets of Kapoor, Wadhawan attached ASSETS, INCLUDING FLATSin London and New York, with a marketvalueof`2,800croreof Yes Bank co-founder Rana Kapoor and the Wadhawan brothers of DHFL company have been attached in the Yes Bank money-laundering case, the ED said on Thursday, reportsPTI.“Theassetsinclude immovable properties in India and abroad, bank accounts, investments, luxury vehicles, among others,”the ED said. Kapoor’s frozen assets include a bungalow (No. 40) located at the Amrita Shergill Marg in Delhi that is worth `685 crore,a residential building ‘Khursidabad’ at Cumbala Hill,south Mumbai,three duplex flats at Napean Sea Road in Mumbai, a flat in NCPA, Nariman Point and eight flats in India Bulls Blue inWorli. Detailed report on Page 2
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