OPINION, P6 COMPANIES, P4 EDITORIAL RSCI, born in Covid shadow, could challenge RCEP YET ANOTHER MILESTONE US PRESIDENTIAL ELECTION Bradykinin storms seem to explain many aspects of Covid pathology, need to explore this further AMITENDU PALIT INTERNATIONAL, P8 RIL becomes first Indian company to hit $200-bn market cap Russian state hackers suspected of targeting Biden campaign firm NEW DELHI, FRIDAY, SEPTEMBER 11, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 166, 18 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 38,840.32 ▲ 646.40 NIFTY: 11,449.25 ▲ 171.25 NIKKEI 225: 23,235.47 ▲ 202.93 HANG SENG: 24,313.54 ▼ 155.39 `/$: 73.46 ▲ 0.09 `/€: 86.92 ▼ 0.30 BRENT: $40.23 ▼ $0.56 GOLD: `51,416 ▲ `350 IN THE NEWS India's August fuel demand dips most since April INDIA'S FUEL DEMAND in August posted its biggest decline since April as local lockdowns put brakes on economic activity and transportation, official data showed on Thursday, reports PTI. Petroleum product sales fell to 14.39 MT in August, down 7.5% over the previous month and about 16% from a year earlier, the data from Petroleum Planning and Analysis Cell showed. States' start-up ecosystem ranking to be out today THE GOVERNMENT will release the second edition of ranking of states and UTs based on their startup ecosystem on Friday, reports PTI. The rankings are based on the steps taken to promote budding entrepreneurs. Zomato picks up $104 million, to go public in 2021 Use RT-PCR to get best results: Govt Catching the RAT RT-PCR tests for all symptomatic that RAT tests said were uninfected; Delhi opens RT-PCR for all (% of symptomatic persons found positive using RT-PCR after RAT tests indicated they were Covid-negative) 30 20 15 10 THE SURGE IN Covid-19 infections,to4.5milliononSeptember 10 from 2.2 million on August 10, has got the governmenttochangeitstestingstrategy.While ramping up testing was, rightly, seen as an important part of the strategy to contain the virus, this did not help as much since the bulk of the ramping up was done by using RapidAntigenTests(RAT)which capture about a third of the Serum halts India vaccine trials SERUM INSTITUTE of India onThursdayhaltedtheongoing Covid vaccine clinical trials in the country, reports fe Bureau in Pune.“We are reviewing the situation and pausing India trials till AstraZeneca restarts trials,”a statement issued by Serum Institute said. ■ Page 4 OIL MINISTER DHARMENDRA Pradhan said on Thursday that the government aims to have 10,000 retail outlets of CNG in the next five years as the country plans to increase the share of gas in its energy basket, reports fe Bureau in New Delhi. 15.2 11.5 5 0 Delhi Maharashtra (June 18Aug 27) India (till Aug 14) (June 18July 21) infections that RT-PCRtests do. Around75%oftestsinDelhi are nowrapid antigen tests,it is 66% in the case of Kerala, and 90% in the case of Bihar. Continued on Page 2 Randeep Guleria for post-Covid clinics ASSEVERALpatientsarecomplaining about multiple healthconcernsafterrecoveryand reportingtohospitals,experts from AIIMS like director Dr Randeep Guleria expressed the need to have post-Covid clinics at all tertiary care hospitals, reports Astha Saxena in NewDelhi. ■ Page 2 HOME NETWORK Reliance Jio, Bharti lower fixed broadband tariffs and speed KIRAN RATHEE New Delhi, September 10 Some of Jio’s monthly plans last year Plan Some recently announced unlimited monthly plans `699 `849 `1,299 `399 `699 `999 Speed 100 100 250 30 100 150 Data 150 400 750 (`) (mbps) (GB) FORCE MULTIPLIER Five Rafale jets were inducted into the Indian Air Force at the Ambala Air Force station on Thursday. The induction ceremony, including a water cannon salute, was held in the presence of defence minister Rajnath Singh and his French counterpart Florence Parly TASHI TOBGYAL TAX CHANGES India Inc pays out record dividends Ahead of the new laws, promoters pay themselves chunky dividends `999 `1,499 `499 `799 Speed 100 200 300 40 100 THEDIVIDENDPAYOUTforthe Nifty 500 universe has risen to 42.5% in 2019-20 — the highest in at least seven years, data from Capitaline shows.While the top 500 companies distributed34.9%oftheirearningsas dividendsin2018-19,theratio for 2017-18 was higher at 38.5%. The five-year average through FY19 is 36.4%. Unsurprisingly, the rise in dividend payout was seen in companieswherethepromoter holding is significantly high. STATING THAT “IT is keen to waive interest on interest” for the borrowers who availed themselves of the moratorium facility extended by the government in the wake of Covid19, the Supreme Court on Thursdaygave a‘last chance’to the government and the RBI to come up with a‘concrete plan’ with regard to the vexed issue. The court also extended the temporary immunity to the relevant loan accounts from being classified as NPAtill September 28, when it will likely pronounce its final order. Meanwhile, the government-RBI-banks combine and the petitioners, comprising assorted borrowers including real estate and power companies, resorted to heated arguments duringThursday’s hearings,withtheformercallingthe FY16 FY17 FY18 FY19 FY20 Sample of Nifty500 companies Source: Capitaline Approximately 10% of the firms have more than doubled their payout in 2019-20; the promoter group held a stake of over 60% in these companies. The reason forthe high payout is that the dividend distributiontax(DDT)wasabolishedin theFY21Budget.Theruleshave been amended such that the dividendincomeisnowtaxable in the hands of the receiver as per the tax rate applicable to theirincome slabs. Continued on Page 12 Data 150 300 500 WE SHOULD BE BACK TO PRE-COVID LEVELS IN H2FY21. WE WILL BE CUTTING FIXED COSTS BY 15% THIS YEAR. 200 (GB) 34.9 INDU BHAN New Delhi, September 10 `999 (mbps) 42.5 YOOSEF KP Mumbai, September 10 Some of Bharti’s new unlimited plans `799 (`) 38.5 —KUMAR MANGALAM BIRLA , HINDALCO INDUSTRIES CHAIRMAN Unlimited* financing round.A few others, such as Kora Management,are also expected to participate in this round.Lastweek,the Gurgaon-basedfirmraised$62.44 million from existing investor Temasek and with the latest infusion, Zomato has now raised some $1 billion. Continued on Page 2 Govt panel to gauge interest waiver impact FE BUREAU New Delhi, September 10 THE CENTRE ONThursday set up a panel underformer comptroller and auditor general Rajiv Mehrishi to assess the impact of“waiving of interest and waiving ofinterestoninterestonthe Covid-relatedmoratorium” on the economy and financial stability. Continued on Page 2 petitioners’stanceas‘adversarial’,andthe courtcomingtothe petitioners’defense. Continued on Page 2 *Around 3000 GB a month ● GSDP GOAL offered is unlimited. So, if an existing customer with a `699 plan shifts to `399, he would have to settle for a much slower speed. The unlimited data (roughly3000 GB) in the lower Special Features Deepinder Goyal SC sticks to stance, says 'keen to waive interest' Dividend payout ratio (%) 36.5 35.9 FOOD DELIVERY PLAYER Zomato,whichhasraised$104 million in a fresh round, plans to go public sometime in the first half of 2021, founder & CEO Deepinder Goyal said in an internal mail to employees on Thursday. “We have raised a lot of money, and today, our cash in the bank of around $250 million is more than ever in our history. We estimate that our current roundwill end upwith us at $600 million in the bank very soon,”Goyal wrote. Regulatory filings sourced frombusinessplatformsTofler and paper.vc showed Zomato has raised a fresh `760 crore ($103.45 million) from Tiger Global, Baillie Gifford and Ant Financial as part of the series J LOAN MORATORIUM It's raining dividends Unlimited* Some of Bharti’s earlier monthly plans Plan FE BUREAU New Delhi, September 10 23.9 25 ISHAAN GERA New Delhi, September 10 Govt targets 10k CNG outlets in five years TO CASH IN on the current practice ofwork from home as well as learn from home, Reliance Jio and Bharti Airtel have come out with new tariff packages for fixed line broadband (FBB), with the monthly starting price point as low as `399 and `499, respectively. However, for existing customers, the monthly bill would not see a drop unless the users want to settle for lower Internet speed than the existing one. Earlier, the starting monthlytariff package fora Jio FBBconnectionwas`699with a speed of 100 Mbps and 150 GB data. Now, Jio has offered a starting package of `399 but the speed would be much lowerat 30 Mbps.Though data FUND-RAISING TESTING RIGHT price plan does not mean much because consumers hardly exhaust 150 GB and operators roll overthe remaining to the next month. Continued on Page 2 Health plans to give wellness rewards to policyholders In a boost to preventive healthcare, Irdai has allowed insurers to offer policyholders wellness and preventive features as optional or add-on cover with health plans ■ Personal Finance, P9 UP sticks to $1-trillion target, seeks consultant DEEPA JAINANI Lucknow, September 10 CLINGING TENACIOUSLY TO thepollpromiseofboostingthe sizeofthestate’seconomyto$1 trillion by 2025, Uttar Pradesh on Thursday floated a global tender to engage a consultant for the task, which, by its own admission, looks Herculean. Given that the gross state domestic product in FY20 was about`17.95lakhcrore,achievingthetargetwillrequireraising it byover4 times in fiveyears. THE INDIAN ECONOMY will contract by 9% in 2020-21 as Covid infections areyet to peak and the government is not providing adequate direct fiscal support,CrisilsaidonThursday. In May, the rating agency had estimated the economy to contract by 5%. Crisil said the 9%contractionwillbethehighest since the 1950s. ■ Page 2 QuickPicks Indiabulls Housing Fin sells part stake in OakNorth Holding Planned parts rules: Automakers seek delays, exemptions INDIA IS planning to offer incentives worth `1.68 lakh cr to attract companies to set up manufacturing in the country, people with knowledge of the matter said, reports Bloomberg. The government will offer production-linked incentives to automobile manufacturers, solar panel makers, and specialty steel to consumer appliance companies. Textile units, food processing plants and specialised pharma product makers are also being considered for the plan. PAGE 2 INDIABULLS HOUSING Finance on Thursday said that it has sold a part of its stake in OakNorth Holding to HighSage Ventures for `440 crore, reports fe Bureau in Mumbai. The sale proceeds would be accretive to the regulatory net worth and the capital adequacy ratio, which stood at 27.94% at the end of June quarter, of the company. “The company plans to conclude few other transactions on the partial stake sale in OakNorth Bank over the next few days,“ Indiabulls Hosuing Finance said. PAGE 10 Crisil cuts FY21 outlook to worst since 1950s PRESS TRUST OF INDIA Mumbai, September 10 Continued on Page 12 India mulls `1.68L-cr package to attract global manufacturers ● INDIA GDP FOREIGN AUTOMAKERS are seeking delays and exemptions to India's planned new quality rules for imported auto parts, arguing the regulations will increase costs, hurt sales and disrupt supply chains, sources told Reuters. The government is keen to reduce imports to boost local manufacturing to make India more self-sufficient and enable it to play a bigger role in the global supply chain. The move is seen mainly aimed at slashing the amount of lower-quality imports from China. PAGE 5 New Delhi
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