OPINION, P6 ECONOMY, P2 K SRINATH REDDY Human immune system memory may defang Covid-19 reinfection INTERNATIONAL, P8 EDITORIAL FOSSIL FUEL CONCERN ACCEPTANCE SPEECH Covid-19's lingering after-effects make a long-term healthcare roadmap an imperative UN secretary-general expresses concern over ongoing coal auctions Trump promises tariffs on firms that leave US to create jobs abroad NEW DELHI, SATURDAY, AUGUST 29, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 155, 28 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: 39467.31 ▲ 353.84 NIFTY: 11647.60 ▲ 88.35 NIKKEI 225: 22882.65 ▼ 326.21 HANG SENG: 25422.06 ▲ 140.91 `/$: 73.40 ▲ 0.41 `/€: 87.41 ▼ 0.03 BRENT: $45.05 ▼ $0.04 GOLD: `50981.00 ▼ `253.00 FOR HIRE Maruti presses the pedal on rentals Passengers refusing to wear mask in a flight can be put on no-fly list by the airline changes to the data in the Doing Business 2018 and Doing Business 2020 reports, publishedinOctober2017and 2019.The changes in the data were inconsistent with the ■ Hyundai Motor, Mahindra & Mahindra, Skoda, and Fiat also provide subscription services ‘Maruti Suzuki Subscribe’ brand, in Hyderabad and Pune as a pilot project. Under the Maruti Suzuki Subscribe,customers can choose to subscribe a newSwift,Dzire,VitaraBrezzaandErtigafrom Maruti SuzukiArena and a new Baleno,CiazandXL6fromNexa foraperiodof12,18,24,30,36, 42and48months,thefirmsaid. So a customer can lease the lat- ■ Hyundai’s charges range from `16,000 a month for a i10 Grande to `26,000 for a Verna est edition of the Swift Lxi for `17,600 a month (all inclusive) in Pune and `18,350 in Hyderabad. The minimum lock-in wouldbefor12months.Ifacustomer was to purchase a Swift Lxi model,priced at `5.19 lakh (ex showroom),the EMIswould be `11,000 for a 5-year loan with `57,000 down payment. Continued on Page 2 The bulk of the amount that the central and state governments owe mills is owed by the Centre Mills owe farmers `17,300 cr across the country while the government owes them around `9,400 cr Another `1,100 crore is owed by states that bought electricity produced by sugar mills but have yet to pay for it SUNIL JAIN New Delhi, August 28 AS THE AMOUNT owed by sugar mills to farmers crosses `17,300 crore across the country,the knives are out for mill-owners. While this may be justified at the level of Seven mills in Uttar Pradesh have paid farmers less than 30% of what they owe some individual mills — seven mills in Uttar Pradesh have paid farmers less than 30% of what they owe — at an allIndia level, the central and Crew to wear fresh set of gloves for every meal/beverage service Special Features S-Cross: A car that didn’t quite cross over Maruti Suzuki S-Cross petrol is very fuel efficient, it is value for money, but from no angle does it look like an SUV; even its name shouts aloud that the SCross is a crossover car ■ Motobahn, P13 QuickPicks Govt allows Brookfield’s $3.4-bn purchase of Jio’s tower assets THE GOVERNMENT has approved Brookfield Asset Management’s proposal to buy a $3.4-billion stake in a trust managing the wireless infrastructure of India’s biggest mobile-phone service provider, people with knowledge of the matter said, reports Bloomberg. The telecom ministry allowed it to take control of Reliance Jio Infratel via Tower Infrastructure Trust, the people said. P4 Extension of compensation cess fund to hit Centre’s revenue THE EXTENSION of the compensation cess fund beyond the transition period of five years would affect the revenue potential of the central government from June 2022, because in the absence of the fund, the cess rates were to be merged into the goods and services tax (GST), reports Sumit Jha in New Delhi. PAGE 2 Continued on Page 2 For half of UP mills, FRP is better than SAP: Page 2 Bengal, Kerala FMs say Centre should borrow, not states FE BUREAU New Delhi, August 28 Dinesh Khara Disposable earphones or cleaned, disinfected headphones to be provided to passengers at start of the journey state governments owe sugar mills over `9,400 crore; the bulk of this, around `8,300 crore, is that owed by the centre under various heads like a production subsidy,a bufferstock subsidy and even interest subvention. Another `1,100 crore is owed by states that bought electricity produced by sugar mills but have yet to pay for it. In the case of a state like Uttar Pradesh where around `11,300croreisowedtofarmers,theduestosomeofthebetter mills are close to 75% of whatthemillsowethefarmers. GST SHORTFALL Only single-use disposable trays, plates and cutlery to be used Passengers can use in-flight entertainment systemwherever available Continued on Page 2 If govt paid up,farmer dues could halve BBB for Khara as next SBI chairman Hot meals permitted on international flights Doing Business methodology,” the World Bank said in a statement onThursday.“Wewill act based on the findings and will retrospectivelycorrectthedata of countries that were most CRUSHING SEASON ● NEW ROLE FLIGHT PLAN Pre-packed snacks, meals and beverages permitted on domestic flights `18,350 in Hyderabad under this scheme THE WORLD BANK has suspended publication of its DoingBusinessreporttoprobe alleged irregularities in the underlying data. “A number of irregularities have been reported regarding being audited and changes that occurred over the last five Doing Business reports are being reviewed ANKUR MISHRA Mumbai, August 28 THE BANKS BOARD Bureau (BBB) has recommended the name of Dinesh Kumar Khara, managingdirector(MD)ofState BankofIndia(SBI),asnextchairman of the bank.The board has also suggested CS Setty as the candidate on the reserve list for thevacancy.CSSettyisalsoservingasMDofStateBankofIndia. The three-year term of SBI chairman Rajnish Kumar will come to an end on October 7, 2020.However,thepossibilityof Kumargettingaone-yearextension due to ongoing Covid-19 situation cannot be ruled out. “The final decision on the vacancy will be taken by the Appointments Committee of theCabinet.Itcaneitherchoose from the Banks Board Bureau’s recommendationsorextendthe tenure of the current SBI chairman,” thesource added. Continued on Page 2 BOWING OUT Japanese Prime Minister Shinzo Abe announces his resignation due to health reasons, at a news conference at the prime minister's official residence in Tokyo on Friday REUTERS Market watch BLOOMBERG Bank stocks lead Sensex gains Stocks rose capping their best week in five, as accelerating inflation prompted bets that bank profits may benefit from steeper yield curves. Lenders drove gains in the Sensex, with Axis Bank, ICICI Bank and IndusInd Bank rising the most, while the BSE Bankex Index traded at its highest level since midMarch. Bank Nifty 24,523.8 24,600 24,000 23,400 22,800 21,700.85 22,200 21,600 21,000 17 18 19 20 21 24 25 26 27 28 August 2020 Source: Bloomberg FINANCE MINISTERS OFWest Bengal and Kerala on Friday said their states won’t be on boardwith the borrowing plan suggested by the Centre to meet the states’ protected goods and services taxrevenue target,unless the Centre offers to raise the loan. Speaking to CNBV TV 18, they said their states are not equippedtoborrowataratethat is available to the Centre.In the GSTCouncilmeetingonThursday, the Centre proposed that states can borrow under a special dispensation which would ensure a G-Sec linked rate of interest.Theinterestcostwould be borne from the proceeds of the compensation cess fund accruing after June 2022.The states have been given two options — either to borrow `97,000 crore with an additionalfiscaldeficitheadroomof 0.5% or `2.35 lakh crore without anyFRBM relaxation. “The states do not have the capacity to borrow: some of them aren’t able to pay salaries and even pensions.The Centre has the capacity to borrow becauseitcanmonetiseitsfiscal deficit which means RBI can printmoneyforthem.TheCentrecanborrowat2%lowerrates (Left) Amit Mitra, (Right) Thomas Issac Difference between cess revenue & compensation paid/required (` crore) FY18 FY19 FY20 (shortfall) THE ISSUE price for the sixth tranche of the Sovereign Gold Bond Scheme has been fixed at `5,117 per gram, the RBI said in a statement on Friday, reports PTI. The Sovereign Gold Bond Scheme 2020-21 series VI will open for subscription on August 31, 2020 and close on September 4, 2020. a month in Pune and ARCHANA CHAUDHARY August 28 ■ Data collection processes 2,35,000 Sixth tranche of gold bond opens on Aug 31 `17,600 No down payment required. Car maintenance, insurance, 24x7 roadside support to be borne by the company the World Bank’s chief economist after questioning changes to Chile’s rankings in the Doing Business report 69,858 AS AUTOMAKERS SLOWLY increase their production after the Covid-19 lockdown and salesalsograduallypickup,they have also started offering the subscription option to consumers who may want to shift from public transport and shared mobility solutions to personal cars. However, higher cost vis-a-vis buying a car and the minimum lock-in period of 12monthsisaconstrainingfactorinthepopularityofsuchservices,industryanalysts said. India’s largest passenger vehicle manufacturer, Maruti Suzuki India, on Friday expanded its offering in the subscriptionsegmentwithapartnership with Myles Automotive Technologies under what it calls the Swift Lxi can be hired for ■ Paul Romer quit in 2018 as affected by the irregularities.” Published since 2003, the report ranks 190 economies based on how easy it is to do business there, taking into account trading regulations, property rights, contract enforcement,investmentlaws, the availability of credit and a number of other factors. In recent years, there have been questions about the integrity of the rankings. Paul Romer quit in 2018 as the World Bank’s chief economist after questioning changes to Chile’sorderintheDoingBusiness report. (shortfall) FE BUREAU Mumbai/New Delhi, August 28 Customers can choose Swift, Dzire, Vitara Brezza, Ertiga, Baleno, Ciaz and XL6 for 12, 18, 24, 30, 36, 42 and 48 months It examines trading rules, property rights, contract enforcement, and availability of credit, etc (excess) Yojana (PMJDY), which was launched six years ago as a national mission for financial inclusion, finance minister Nirmala Sitharaman said on Friday, reports PTI. The Jan Dhan Yojana was launched on August 28 in 2014. WHAT'S ON OFFER Published since 2003, the Doing Business report ranks 190 economies based on how easy it is to do business there Bank suspends publication of its Doing Business report after a series of complaints 25,806 After Gurgaon and Bengaluru, the auto Jan Dhan scheme major is offering monthly rental completes plans in Pune & six years Hyderabad. High MORE THAN 40.35 crore rent, 12-month lockpeople benefited from the in seen as deterrent Pradhan Mantri Jan Dhan World Bank probes data irregularities (excess) A RECORD single-day spike of 77,266 COVID-19 cases pushed India's virus tally to 33,87,500, while recoveries surged to 25,83,948 on Friday, according to health ministry data, reports PTI. RIGGED REPORT? 21,465 IN THE NEWS India’s single-day Covid cases cross 77,000-mark FY21 (E) thanwhatisavailableforstates,” West Bengal FM Amit Mitra said.Headdedthattheproposal to extend the compensation cess fund mechanism beyond fiveyearswasreasonableonlyif theCentre offered to borrow. Continued on Page 2 DO NOT TRACK Apple’s upgrade can limit how much data Facebook can collect NANDAGOPAL RAJAN New Delhi, August 28 FACEBOOK IS MIFFED with Apple.To be precise, Facebook is miffed with Apple’s iOS 14 software update thatwill start rolling out to users across the world in a couple of months. The latest version of Apple’s iPhone operating system has one feature that could potentially damage the social network’s business model,at least among those using iOS devices.Once on the latestver- sion of the software,Applewill give users the choice to decide whether they can be tracked across apps using an unique identifier. At WWDC, Apple’s annual developer conference, the company announced that with iOS 14, users will get a pop-up asking them if they want to be tracked bya specific app. Since this will also give users the freedom to say no, it will cut the amount of data an app like Facebook is able to collect about a specific user cut effectiveness of ad campaigns via its Audience Network with the help of unique identifiers.While thiswill help preserve consumer privacy, for apps like Facebook it will reduce the effectiveness of ad campaigns via its Audience Network as itwill reduce attribution that helps identifyif an adwas successful in triggering an app install or payment. ■ This is because it will reduce What is IDFA? WORRY FOR FACEBOOK ■ Apple announced that with iOS 14, users will get a pop-up asking them if they want to be tracked by a specific app ■ Since this will also give users the freedom to say no, it will cut amount of data an app like FB is able to collect about a specific user with help of unique identifiers ■ For apps like Facebook it will attribution that helps identify if an ad was successful in triggering an app install or payment IDFA or Identifier for Advertisers is the random device identifierApple assigns to an iPhone across apps. New Delhi Advertisers like Facebook use this to deliver and track customised advertising. For instance, if someone is shown an ad to download a game on Facebook, this number helps authenticate if the same device finallyended up downloading the app. However, Apple does this without identifying the user itself. This is also used to track effectiveness of mobile advertising campaigns as well. Continued on Page 14
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