OPINION, P6 MARKETS, P10 DEEPAK GUPTA Need to plan on prioritisation, etc, before Covid vaccine roll-out INTERNATIONAL, P8 EDITORIAL UNIFORM APPROACH IN A WORLD’S FIRST UP-style misuse of National Security Act needs to be curbed, abuse disempowers citizens RBI issues new set of guidelines for banks for stricter compliance Xi-led China starts testing Covid-19 nasal spray vaccine NEW DELHI, SATURDAY, SEPTEMBER 12, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 167, 18 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: 38,854.55 ▲ 14.23 NIFTY: 11,464.45 ▲ 15.20 NIKKEI 225: 23,406.49 ▲ 171.02 HANG SENG: 24,503.31 ▲ 189.77 `/$: 73.54 ▼ 0.07 `/€: 87.07 ▼ 0.15 BRENT: $39.90 ▼ $0.16 GOLD: `51,174 ▼ `242 INDO-CHINA STATEMENT ● MILD RECOVERY ‘Let’s keep talking, quickly disengage’ THE CENTRE HAS released `6,195 crore to 14 states as monthly instalment of post devolution revenue deficit grant, reports PTI. "...This would provide them additional resources during the Corona crisis," the office of finance minister Nirmala Sitharaman said in a tweet. A similar amount was released as grant in April-August. Both nations adopt 5-point approach to resolve the crisis along LAC in Ladakh ADOPTING A FIVE-POINT approach to resolve the crisis alongtheLineofActualControl in Ladakh where the situation hastakenaturnfortheworsein recent days, India and China announced Friday they had agreedthattheirtroops“should continuetheirdialogue,quickly disengage,maintainproperdistance and ease tensions”. A joint statement, issued after a two-and-a-half-hour meeting Thursday night in THE SUPREME COURT on Friday sought responses from the Centre and others on a plea which has sought to declare as “illegal” and “unconstitutional” the actions of states, including Delhi and West Bengal, in not implementing ‘Ayushman Bharat Pradhan Mantri Jan Arogya Yojana', reports PTI. Moody's revises Bharti rating outlook to stable FE BUREAU New Delhi, September 11 TATA SONS HAS moved the Supreme Court seeking to restraintheShapoorjiPallonji MistryGroupfirmsfromraising capital against security of 5.2 Feb ‘20 -20 -40 -80 -10.4 Apr ‘20 -60 -57.3 July 2019 July 2020 Govt has cautioned against comparing data during lockdown period with earlier months Source: MoSPI External affairs minister S Jaishankar (left) with his Chinese counterpart Wang Yi during a bilateral meeting on the sidelines of the SCO meeting, in Moscow Moscow between external affairs minister S Jaishankar and Chinese state councillor and foreign minister Wang Yi, said the ministers“agreed that the current situation in the borderareas is not in the interest of either side”. The first such joint statement said the ministers had a “frank and constructive discussiononthedevelopmentsinthe India-Chinaborderareasaswell as on India-China relations”. Continued on Page 2 Tatas in SC to block Mistry firms from raising capital MOODY'S ON FRIDAY revised Bharti Airtel's credit outlook rating to stable from negative over easing of competition, increase in 4G customer base and mobile services rates from December, reports PTI. IIP (% change, y-o-y) 20 4.9 0 SHUBHAJIT ROY New Delhi, September 11 SC notice to govt, others on Ayushman plea IIP drops 10.4% in July; bumpy road ahead theirsharesinTataSons.Italso wants that any “such action created on its shares be removedforthwith”. Ithasalso sought a direction to the SP group,whichowns18.32%in Tata Sons,“to disclose on affidavit all the pledges, encum- brances or charges, direct or indirect, that may have been created”uponitssharesorthe sharesofthetwoMistryfirms —CyrusInvestmentandSterling Investment. Continued on Page 2 FE BUREAU New Delhi, September 11 THE INDEX OF industrial production(IIP)dropped10.4%in July, against a 15.8% (revised) contraction in the previous month,reflectingtheimpactof an easing of lockdown curbs since June. However,while the contractioninoutputnarrowed from a record 57.3% in April, the relative recovery since June was milder than expected and pointed to a bumpy road to a sustained and strong recovery. Nevertheless, given the exceptional circumstances,the governmentearlierhighlighted that any comparison with the (year-on-year) growth rates for earlier months would be inappropriate at this juncture. Continued on Page 2 India’s GDP to contract by a record 11.5% in FY21: Moody’s GLOBAL RATING agency Moody’s on Friday forecast India’s real GDP to contract by a record 11.5% in FY21 before witnessing a 10.6% expansion in the next fiscal, reports fe Bureau in New Delhi. With this, Moody’s joins a number of established agencies in projecting a much sharper contraction. While most agencies have predicted a recovery in FY22, they have cautioned that it will be mainly because of a favourable base. It also forecast that the country’s debt-to-GDP ratio will worsen to 90.1% in FY21 from 72.2% in the last fiscal, before easing a tad to 88.5% in FY22. PAGE 2 THE AVIATION regulator DGCA has asked IndiGo to take "appropriate action" after the aviation regulator found alleged violation of safety and social distancing protocols by mediapersons in the airline's Chandigarh-Mumbai flight that had actor Kangana Ranaut as a passenger, senior officials said on Friday, reports PTI. "We have seen some videos wherein mediapersons are standing too close to each other in the 6E264 flight on Wednesday. It seems to be a violation of safety and social distancing protocols," a DGCA official said. Special Feature The Venue iMT: Manual gearbox, reimagined The Hyundai iMT gearbox isn’t automatic; it’s a manual, but without a clutch pedal. It offers the convenience of automatic gearbox, with the fun-todrive character of a manual ■ Motobahn, P13 FLOWER POWER A girl places a flower on the edge of the North pool during ceremonies on the 19th anniversary of the September 11, 2001, attacks on the World Trade Center at the 911 Memorial in Manhattan, New York, on Friday Start-up ecosystem ranking FE BUREAU Gujarat tops the list, Karnataka No. 2 Gujarat was the "best performer" among states for its robust start-up ecosystem, follwed by "top performers" Karnataka and Kerala in 2019. The ranking is based on seven broad reform areas-institutional support, easing compliances, relaxation in public procurement norms, incubation centres, seed funding, venture funding, and awareness and outreach. SEE PAGE 2 BEST PERFORMER ■ Gujarat TOP PERFORMERS ■ Karnataka ■ Kerala LEADERS ■ Bihar ■ Maharashtra ■ Odisha ■ Rajasthan In a separate group of UTs & N-E states (barring Delhi & Assam), Andaman & Nicobar was the best performer Source: DPIIT (Map not to scale) ASPIRING LEADERS ■ Haryana ■ Jharkhand ■ Punjab ■ Telangana ■ Uttarakhand UNFAZED! TikTok owner to spend billions in Singapore after US ban CHANYAPORN CHANJAROEN & ZHEPING HUANG September 11 Shopping spree Southeast Asia’s e-commerce is on track to top $150 bn in 2025 2015 ILLUSTRATION: ROHNIT PHORE BYTEDANCE, THE CHINESE ownerofvideo-sharingappTikTok,is planning to make Singapore its beachhead for the rest of Asia as part of its global expansion,according to people familiarwith the matter. The Beijing-based company is looking to spend several billiondollarsandaddhundredsof jobs overthe next threeyears in 2019 2025 merchandise 5.5 Gross ($ bn) value 38.2 153 Source: Google & Temasek/Bain, e-Conomy SEA 2019/Bloomberg the city-state, where it has appliedforalicencetooperatea digital bank, said the people, States give timely leg-up to public spend, worn out BORROWING TO SPEND Despite tax revenue falling by a fifth, 10 states reviewed by FE reported 7% expenditure growth in April-July States' budgets* (growth, %, y-o-y) FY20 FY21 80 PRASANTA SAHU New Delhi, September 11 7 3 0.2 AMID ACUTE BUDGET constraints, state governments have not only borrowed heavilyduring the lockdown period but also used the proceeds expeditiously to step up budgetary spending to the extent possible. However, the question is how long would they tread the path; they may have already started reining in spending, given that the pandemic is burning a big hole in revenues. Despite liberal transfers by the Centre from the divisible tax pool,tax revenues of states declined more than fifth yearon-year during April-July, but -19 Capex Total expenditure -6 -21 Tax revenues -11 Borrowings *Of 10 states namely MP, AP, Karnataka, Odisha, Telangana, Kerala, Chattisgarh, Haryana, Jharkhand and Himachal their expenditures seem to have grown faster than the year-ago period. A review of the budgets of ten states by FE showed their combined expenditure in April-July grew 7% on year, compared with a rise of just 3% ayearago.These states’tax revenue slipped 21% on year during the first fourmonths of the current fiscal. The Centre’s net tax revenue fell a steep 40% in AprilJuly,butitkeptthepaceofbudgetary expenditure at 11%, only marginally lower than 13.2% budgeted for FY21. Continued on Page 2 NOT HAPPY HOURS More eateries could shut shop as customers continue to stay away ASMITA DEY New Delhi, September 11 QuickPicks DGCA asks IndiGo to take action against flight rule violation CAPEX CRAWLS who asked not to be identified because of confidentiality.The investment would come at a crucial time as the technology firmisforcedtosellTikTokoperations in the US underpressure bytheTrump administration. ByteDance, the world’s most richly valued start-up, is plowing ahead with plans to take its social media services deeper into Asia after setbacks in India and the UK as well as the US.The internet phenomenon controlled by billionaire Zhang Yiming has long eyed Southeast Asia’s 650-million increasingly smartphonesavvy population, a region where Alibaba Group Holding and Tencent Holdings are also making inroads. The plans for Singapore include establishment of a data centre,the people said. Its operations there include TikTok and Lark, an enterprise software business. ByteDance currently has more than 200 job openings in Singapore, for positions in everything from payments to e-commerce and data privacy, accordingtoitsjobreferralsite. Continued on Page 2 IN JUNE, THE Khan Market outlet of Smoke House Deli was shut down.Three months down the line, Jaydeep Mukherjee, brand head at Smoke House Deli, says there are no signs business will recover anytime soon. Experts say industry revenues remain at less than 20% of pre-Covid levels,eventhoughrestaurants were opened up early in the Unlock phase. While most eateries are offering delivery services,these contribute only about 10-12% to total revenues.In the organised sector, it is the dine-in segment that brings home the bacon. AD Singh, founder and MD at Olive Group of Restaurants,which runs over 30 outlets, told FE he had expected business to reach pre-Covid levels by December but now believes normalcy may be delayed by up to a year. The company has already closed ILLUSTRATION: SHYAM KUMAR PRASAD IN THE NEWS Govt releases `6,195-cr grant to 14 states ■ Customers only considering restaurants with premium hygiene standards and safety tags ■ Nearly 58% business in August was led by casual dining restaurants, cafes and QSRs down two restaurants and unless landlords are more supportive, three more may be closed down. Anestimated30%ofrestaurants and bars have permanentlyshut,saysAnuragKatriar, GOING GREEN Currently, Greenko stake is owned by Singapore’s GIC 68% 16.5% Stake held by Abu Dhabi Investment Authority president, National Restaurant AssociationofIndia(NRAI),and more could meet the same fate unless there is an “unexpected revenge consumption”. Continued on Page 2 ● RISING YIELDS Orix to buy $980-m stake in Greenko ORIX HAS AGREED to buy a roughly 20% stake in Indian renewable energy developer Greenko Energy Holdings for $980 million, the Japanese conglomerate’s biggest investment in the sector overseas. Under the deal terms, the Tokyo-based company will acquire new shares along with existing stock from Greenko founders. It will transfer its entire wind power generation business in India to Greenko, Orix said in a statement on Friday.“India is a big and attractive market – powerdemand is growing,”HidetakeTakahashi, an executive officer at Orix, said in an interview. Currently, Singapore’s GIC holds 65.8% of Greenko, Abu DhabiInvestmentAuthorityhas a 16.5% stake and the remainder is held by its founders.The Economic Times reported the deal earlier on Friday. BloombergNewsreportedinAprilthat China-backed investment fund CNIC was considering buying Bengaluru, Ahmedabad, and Hyderabad top five dining out cities Source: DineOut Survey (data includes takeaway & dine-in) WINDS OF CHANGE TAIGA URANAKA & TAKAKO TANIGUCHI September 11 ■ Delhi, Kolkata, 15.5% Remainder held by Greenko founders ■ Orix will acquire new shares along with existing stock from Greenko founders ■ Japanese company will transfer its entire wind power generation business in India to Greenko Underwriters rescue India 10-year bond sale amid supply worries SUBHADIP SIRCAR Mumbai, September 11 UNDERWRITERS RESCUEDA sale of Indian sovereign bonds, the third such instance in five auctions, highlighting the growing anxiety about rising debt supply amid precarious government finances. Primary dealers bought `17,970 crore ($2.4 billion) out ofa possible `18,000crore of the benchmark 10-year bond, the central bank said on Friday in a release. Continued on Page 2 10-yr bond yield (%) Intra-day, Sept 11 6.07 6.047 6.05 about a 10% stake in Greenko Group, which was seeking to raisenear$800millionbyintroducing a long-term investor. Continued on Page 2 New Delhi 6.041 6.03 6.01 5.99 5.97 Previous close: 6.053 Open Close
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