OPINION, P6 COMPANIES, P4 STEPHEN L CARTER Online classes can’t hold a candle to in-person learning INTERNATIONAL, P8 EDITORIAL COME TOMORROW UPWARDS AND ONWARDS Neither Voda Idea nor Airtel plans really affect net neutrality, not clear why Trai's objecting Reliance first online AGM to feature brand-new virtual platform, Chatbot Tesla share soars on optimism for ‘Battery Day’, India entry NEW DELHI, TUESDAY, JULY 14, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 115, 18 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: 36,693.69 ▲ 99.36 NIFTY: 10,802.70 ▲ 34.65 NIKKEI 225: 22,784.74 ▲ 493.93 HANG SENG: 25,772.12 ▲ 44.71 `/$: 75.20 ▲ 0.01 `/€: 85.03 ▼ 0.13 BRENT: $42.79 ▼ $0.45 GOLD: `49,140 ▼ `3 FUTURE OF EDUCATION NET NEUTRALITY Voda Idea drags Trai to tribunal Says blocked plan was in the market for eight months so action arbitrary BASTILLE DAY IN THE NEWS PMFBY: FM stresses on subsidy releases FINANCE MINISTER NIRMALA Sitharaman on Monday directed officials to follow up with states if and where subsidy releases are pending, particularly in those states which are not implementing the flagship Prime Minister Fasal Bima Yojana in kharif 2020, reports fe Bureau in New Delhi. LEGALLY SPEAKING KIRAN RATHEE New Delhi, July 13 Trai never said anything on it till now, meaning it was granted approval VODAFONE IDEA ON Monday moved the Telecom Disputes Settlement and Appellate Tribunal against theTelecom Regulatory Authority of India’s directiveblockingitsRedXplan, which offers higher speed to its premium customers.The matteris listed forhearing onTuesday.The companysaid the matter impacts its existing customers who are on the plan forthe last eight months. ThebasicprayerofVodafone before the TDSAT is that the concerned tariff plan was filed with Trai in November 2019 and further modifications to it were once again duly filed in May 2020. In that sense, it has been in the market for around eight months now and the regulator never raised any objectiontoit.Suddenly,uponreceiving some complaint last week on Thursday,the Trai asked the company on Saturday to block the plan and explain within seven days howit did not affect quality of services of lower `15,000-CR FPO Vodafone Idea's plan has been in the market since November 2019 Tariffplans are under forbearance Operators do not need any prior approval for launching a new scheme They need to file it before the Traiwithin a week ofthe launch IfTrai has a problem, it immediately blocks it denomination plans. Since tariff plans are under forbearance, operators do not need any prior approval for launching a new scheme but need to file it before the Trai within a week of the launch. If the regulatordoes not find itin accordance with the norms of its tariff order it can direct the operators to drop such plans. Continued on Page 2 DIGITISATION FUND Google to invest $10 billion in India Funds to flow in over the next 5-7 years via equity infusions and partnerships THIS (INVESTMENT) IS A REFLECTION OF OUR CONFIDENCE IN THE FUTURE OF INDIAAND ITS DIGITAL ECONOMY...THERE IS STILL MORE WORK TO DO IN ORDER TO MAKE THE INTERNET AFFORDABLE AND USEFUL FOR A BILLION INDIANS. FE BUREAU New Delhi, July 13 US TECHNOLOGY GIANT Google on Monday said it would investworth $10 billion (`75,000 crore) in India via the Google for India Digitisation Fund over the next five to seven years. Sundar Pichai, CEO, Google and Alphabet, said the funds would flow in through equity infusions and partnerships.“This is a reflection of our confidence in the future of India and its digital economy,” Pichai said at the virtual Google For India event held annually. Google will deploy the investments to enable affordable access and information to Indian citizens in their own languages. It will also build products and services that empowerbusinesstogodigital besides leveraging technology and artificial intelligence (AI) in health, education and agriculture. Pichai believes India’s —SUNDAR PICHAI GOOGLE CEO FUND FACT Enabling affordable access, information in regional languages, be it Hindi,Tamil, Punjabi, etc Building new products, services relevant to India's unique needs digitaljourneyisfarfromcomplete.“There is still more work to do in order to make the internet affordable and useful for a billion Indians.” The technology major also intends to facilitate the use of more high quality, low-cost smartphones in India to improve internet access. Caesar Sengupta, GM & V-P (payments and next billion users), Google,said the GPay for busi- Empowering Leveraging businesses technology and as they AI for social continue or good, in areas embark on such as health, their digital education and transformation agriculture ness app is being used bymore than three million merchants regularly in just eight months of its launch. Over 26 million small Indian businesses are nowdiscoverable on Google search and Maps driving connections with more than 150 million users every month, the company claims. Continued on Page 2 ATMANIRBHAR BHARAT ‘Not about closing doors, but greater global engagement’ FE BUREAU Mumbai, July 13 PIYUSH GOYAL,THE minister for commerce & industry and railways, said on Monday that ‘Atmanirbhar Bharat’ was not about closing India’s doors but opening them and having a greater global engagement. Emphasising that selfreliancedoesnotentailcutting ties with rest of the world, he said it actually meant a larger role for Indian entrepreneurs, businesses,youngsters and all stakeholders to become a part of resilient global supply chains.“It is about improving our quality of production, achieving highereconomies of scale, greater production capacities so that we not only meet India’s needs but also meet global demand at competitive prices and through quality products,” he said addressing the officials of Bombay Chamber of CommerceandIndustry(BCCI)atits 184thannualgeneralmeeting. Borrowing from Prime Minister Narendra Modi’s five ‘Is’ — intent, inclusion, investment,infrastructureandinnovation — , Goyal said India should focus on investment, infrastructure and innovation inthepost-Covidworld.Hesaid that most countries across the world have succeeded on the back of new technology, engagement with newer ways of doing work and innovating not only in products and services but also their processes. Continued on Page 2 It is about improving our quality of production, achieving higher economies of scale, greater production capacities so that we not only meet India’s needs but also meet global demand at competitive prices and through quality products. —PIYUSH GOYAL, COMMERCE & INDUSTRY MINISTER COVID VACCINE Yes Bank sees enough Two candidates get firepower for 2 years FDA 'fast track' status Continued on Page 2 Special Feature Four steps to financial prudence in Covid times Emergency Fund While you prepare your contingency plans, check your credit score regularly, review your investment's performance and initiate a portfolio rebalance if required ■ Personal Finance, P9 QuickPicks At 6.09% in June, CPI inflation breaches RBI threshold THE COVID-INDUCED demand compression hasn’t cooled inflation, aggregate retail inflation data put out by the government showed on Monday, reports fe Bureau in New Delhi. Retail inflation hit higher-than-expected 6.09% in June, marking a rise from the prelockdown level of 5.91% in March. While the headline data for April and May, released only on Monday, suggested even higher inflation rates of 7.22% and 6.27%, respectively, the price pressure was mostly aided by dearer food articles. PAGE 2 Banks’ asset quality in India, Asean to weaken: Moody’s THE ASSET quality and profitability of banks in India and Asean will weaken as economic challenges grow, according to rating agency Moody’s, reports fe Bureau in Mumbai. The net interest income of banks will decrease due to margin contraction, while credit costs will rise due to weaker asset quality, it further said. It had earlier downgraded India’s sovereign credit rating by one notch to ‘Baa3’. PAGE 10 Large trial with up to 30,000 participants expected as soon as later this month MANAS MISHRA & MANOJNA MADDIPATLA Bengaluru, July 13 TWO EXPERIMENTAL CORONAVIRUS vaccines jointly developed by German biotech firmBioNTechandUSpharmaceutical giant Pfizer have received‘fasttrack’designation from the US drugregulator,the companies said on Monday. The candidates, BNT162b1 and BNT162b2, are the most advancedoftheatleastfourvaccinesbeingassessedbythecompanies in ongoing trials in the US and Germany. Pfizer’sshareswereupabout 2% and US-listed shares of BioNTech were up about 6% before the bell. Earlier this month, the companies said BNT162b1 COVID-19 UPDATE 8,78,254 TOTAL CASES 23,174 DEATHS SO FAR 28,701 NEWCASES showed potential against the virus and was found to be well toleratedinearly-stagehuman trials.Early data from the German trial of BNT162b1 are expected to be released in July, the companies said. If the ongoing studies are successful, and the vaccine candidate receives regulatory approval, the companies said they expect to make up to 100 million doses bythe end of this yearand potentiallymorethan 1.2 billion doses by 2021-end. The companies said they expecttobeginalargetrialwith up to 30,000 participants as soon as laterthis month,if they receive regulatoryapproval. Continued on Page 2 WHO warns pandemic worsening globally THE HEAD OF the World Health Organization has warned that the Covid-19 pandemic is worsening globally,reports PTI. At a press briefing on Monday, Tedros Adhanom Ghebreyesus said that “there will be no return to the old normal for the foreseeable future”. He said while numerous countries, especially in Europe and Asia, have brought outbreaks under control, too many others are seeing virus trends move in the wrong direction. PILOT EPISODE Rajasthan chief minister Ashok Gehlot, Congress leaders Randeep Surjewala, Ajay Maken and others at a meeting of MLAs, in Jaipur on Monday. The party leaders claimed that Gehlot enjoyed a comfortable majority as opposed to his deputy Sachin Pilot Business activity FE BUREAU Losing momentum The unyielding pandemic curve is flattening the mobility curve, the result of increased risk aversion among the public and also the return of quasi-lockdown measures. With tighter policies back, there is the risk of incremental improvement fading from August. Nomura India Business Resumption Index 100 80 Continued on Page 2 Continued on Page 2 60 ` 50 Jan 26, 2020 July 12, 2020 Source: Google, Apple, CMIE, Bloomberg and Nomura Global Economics India seeks to limit Facebook, Google dominance INDIA NEEDS A new data regulator to oversee the sharing, monetisation and privacy of informationcollectedonline,an expertcommitteeappointedby the government has recommended. In a 72-page report seen by Bloomberg News, the eight-person panel said that “marketforcesontheirownwill not bring about the maximum social and economic benefits from data for the society” and identified key issues that a new regulatorwould have to tackle. The panel would have to ensure that all stakeholders follow rules, provide data when legitimate requests are made, evaluate risks of reidentification of anonymised personal data and also help level the playing field forbusinesses,the report advised. The document named US Stanford, Yale, among 60 varsities to file in favour of lawsuit ALMOST 60 US universities filed a court brief in support of Harvard University and the Massachusetts Institute of Technology in a case the schools brought to stop new visa rules that could bar many international students. Stanford University and Ivy League schools, including Yale and Princeton, were among those that filed a so-called amicus brief on Sunday. They argued that the new rules,which require in-person teaching for a student visa,are “causing significant harm and turmoil”. Currently, students on visas can have remote teaching for the duration of Covid,they said. US higher education, already facing long-term challenges because of changing demographics, has been severelyhitbythecrisis,closing campuses and giving refunds earlier this year. ` ONLINE DATA SARITHA RAI Bengaluru, July 13 ● TRUMP VISA RULE giants Facebook,Amazon,Uber and Google as the beneficiaries of first-mover advantages and network effects that have “left many new entrants and startups being squeezed and faced with significant entry barriers”. The regulator’s envisioned role in facilitating data sharing wouldbetolessentheseeffectsand also spur innovation,economic growth and socialwellbeing. 70 40 Settling a long-standing dispute, the Supreme Court upheld the rights of the Travancore Royal family in running the administration of the sixth-century Sree Padmanabhaswamy temple in Kerala JANET LORIN New York, July 13 90 66.8 THE PROCEEDS FROM Yes Bank’s `15,000-crore further public offer (FPO) will not only help shore up its capital ratios but give it enough firepower to fund growth over the next two years. The bank is also considering setting up a professionallyrun bad bank in partnership with new equity investors. “So, this `15,000 crore, the way we have calculated the requirement, it would take our CET (core equity tier-I) ratio from the present 6.3% to almost 13% and it would also takecareofourgrowthrequirements for at least next two years,” Yes Bank MD & CEO Prashant Kumar said at the bank’s FPO press conference.In addition to this capital, the bank also has the comfort of almost 250 basis points (bps)ofcapitalseatedinits deferred tax assets. Yes Bank has not included anyrecoveriesfromitsstressedasset portfolio while working out the future requirement. 95.2 FE BUREAU Mumbai, July 13 ILLUSTRATION: ROHNIT PHORE New Delhi
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