OPINION, P6 ECONOMY, P2 COMPANIES, P4 EDITORIAL BANKING REGULATIONS BILL AIMING FOR $50-BN VALUATION Financial status of almost a fifth of urban co-op banks weak: FM Flipkart readies for overseas listing as early as 2021 Banning onion exports shows farmers’ interests come last If oil supermajor BP's reading of oil demand's future is correct, climate relief in store for Earth NEW DELHI, THURSDAY, SEPTEMBER 17, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 171, 22 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 39,302.85 ▲ 258.50 NIFTY: 11,604.55 ▲ 82.75 NIKKEI 225: 23,475.53 ▲ 20.64 HANG SENG: 24,725.63 ▼ 7.13 `/$: 73.53 ▲ 0.12 `/€: 87.26 ▲ 0.27 BRENT: $41.30 ▲ $0.77 GOLD: `51,797 ▼ `118 A touchless vending machine near you Vendekin’s digital platform enables a smartphone interface for touchless purchases from vending machines with a contactless digital payment system to complete transactions ■ eFE, P9 Galaxy Tab S6 Lite: A handy Android slate for learners If you’re looking for a portable device for work, learning or entertainment, the Samsung Galaxy Tab S6 Lite can be a worthy option. It has a snappy performance, good screen, low price and an S-Pen ■ Gadgets, P9 QuickPicks Tata Projects pips L&T,wins bid to construct new parliament building TATA PROJECTS emerged as the winning bidder for a contract to construct a new parliament building, quoting the lowest amount of `861.9 crore, sources said, reports fe Bureau in New Delhi. A formal announcement is expected in two weeks. The financial bids for the project were opened on Wednesday. The second lowest bid was by the engineering conglomerate L&T, which quoted `865 crore, the source added. The third bidder is Shapoorji Pallonji & Company. PAGE 4 Centre: Over 57L benefited from job creation schemes since FY16 THE VARIOUS government schemes and programmes meant for employment generation have benefited over 57 lakh since 2015-16, according to a written reply in Parliament, reports fe Bureau in New Delhi. These include schemes designed to promote employment, including self-employment and skilling. Besides, over 25.32-crore loans amounting to `12.91 lakh crore have been extended under the Pradhan Mantri Mudra Yojana since the inception of the scheme. PAGE 2 Chinese owners revive Thomas Cook as online-only holiday brand THOMAS COOK re-emerged as an online-only travel company on Wednesday, backed by its Chinese owners, a year after the high-profile collapse of the British company left thousands stranded, out of work and out of pocket, reports Reuters. China-based Fosun Tourism Group, the biggest shareholder in the original Thomas Cook and also owner of Club Med, said it was reviving the name to sell holidays online, having bought the brand and online assets last November. PAGE 8 Budget support to grantee/ autonomous bodies (` crore) FY17 66,094 4 bps to 5.99%, while the 5year bond yield down 7 bps at 5.36%.DasalsosaidanRBI-led liquidity surplus in the financial system has enabled lowcostgovernmentborrowings. Continued on Page 15 10-year bond yield (%) 6.03 6.03 Intra-day, Sept 16 5.99 6.01 5.99 5.97 Previous close: 6.03 Open Close DEATHS SO FAR 96,928 NEWCASES collaborate on clinical trials and distribution of the vaccine in India,”Dmitrievsaidinanemail interview.The deliveries could beginasearlyasNovember2020 after registration of the vaccine byregulatoryauthoritiesinIndia ifallgoeswell,thehesaid.Thisis subject to successful trials and theregulator’sapproval. An RDIF official said Phase 3 trials will be conducted in India and an announcement on this is expected soon. Dr Reddy’s co-chairperson and MD GV Prasad said: “We are pleasedtopartnerwithRDIFto bring the vaccine to India.” MEET & GREET Jet Airways CoC meets today to discuss bids (Clockwise from right) Congress MP Jairam Ramesh, TMC MP Derek O' Brien and Union minister Thawar Chand Gehlot at Parliament House; Union minister Prakash Javadekar with Congress leader Mallikarjun Kharge; Union minister HS Puri ANKUR MISHRA Mumbai, September 16 FY19 75,353 FY20 88,320 FY21BE 87,825 ofthemoniesreceivedfromthe Budget.Budgetsupporttothese bodies for FY21 is estimated at `87,825crore. To illustrate,an experimental exercise of this sort last year freedupabout`5,700croreout ofatotalof`6,000croreparked withautonomous/granteebodies under the ministry of science and technology. Continued on Page 2 financial years were high at over `20,000 crore each. The Central Board of Direct Taxes (CBDT), however, sought to rebut the panel’s view, citing that advance tax and tax deducted at source (TDS) could often be higher than the final tax liability. Unlikely buyer BANIKINKAR PATTANAYAK Tenfold jump in iron & steel exports to China Iron and steel exports defied the Covid-19 impact to post a double-digit rise from April to July, but over a fourth of the metals were despatched to an unlikely buyer — China, the biggest steel producer. Beijing’s massive infra push buoyed its metal demand. (April-July period, $ million) Total iron & steel exports Iron & steel exports to China 7,000 6,000 5,000 Total goods exports Exports to only China 1,20,000 1,00,000 80,000 4,000 3,000 2,000 1,000 0 FY20 60,000 40,000 20,000 FY21 0 FY20 FY21 Source: DGCIS Continued on Page 15 feBureauin Pune. SerumInstitutereceived theDCGIletterrevokingthe suspension on Wednesday and the company said it would restart the trial process soon. ■ Report on Page 4 ● RESOLUTION PLAN FY18 77,980 House panel suspects arm-twisting by I-T dept THE INCOME TAX department may be pushing taxpayers to payexcessadvancetaxes to meet revenue targets, theParliamentarystanding committee on finance surmised, as it found that the interest components of the refunds distributed in the last 83,527 THE DRUGS CONTROLLER General of India (DCGI) has granted permission to the Serum Institute of India, a Pune-based vaccine maker, to resume the Covid-19 Phase 2 and Phase 3 vaccine clinicaltrialsinIndia,reports ● ADVANCE TAX FE BUREAU New Delhi, September 16 TOTAL CASES Serum gets DCGI nod to resume trials Autonomous bodies told to return idle funds THE FINANCE MINISTRY has asked all government-funded autonomous bodies (ABs) and ‘grantee institutions’ to return part of the idle funds parked in their bank accounts or held by them as fixed deposits. The move is part of the revenue-starved government’s effort to rebalance the Budget amid a dire need to stimulate the economy. Thoughapreciseestimateof the inflows into the exchequer as a result of the latest move is notimmediatelyavailable,itwill likelyhelpthe governmentgarner a “substantial amount of funds”. Many of these institutions have over the years accumulated a lot of unspent funds, Continued on Page 15 51,03,284 BONDS ADVANCED BY the most in a week after RBI governor Shaktikanta Das reiterated that the monetary authority will take steps as needed, reports Bloomberg. The rupee also gained. The 10-yearbondyield fell Continued on Page 2 PRASANTA SAHU New Delhi, September 16 because ultimately, it is the depositors’money.And,let me mention,that crores of people are depositors, whereas borrowers could be in lakhs. So the interest of depositors had to be protected,” Das said. COVID-19 UPDATE Bonds gain as RBI reiterates support stance COST CONTROL Special Features RBI had to bearin mind the interests of depositors as also the historical experience of restructuring while coming up with the scheme, he observed.“...the primary concern of any banking system should be the protection of the depositors’ interest 7,285 ATOTAL of 28.32 lakh domestic passengers travelled by air in August this year, 76% lower than the corresponding period last year, DGCA said on Wednesday, reports PTI. While IndiGo carried 16.82 lakh passengers, SpiceJet flew 3.91 lakh. claim of the ministry to the extent of $22 million was also allowed bythe tribunal. “Wefeel thattheinterpretation taken by the tribunal is a plausible view, and the challenge on this ground (calculation) cannot be sustained, to refuse enforcement of the award,” the court said Must focus on education and health, productivity, exports, tourism and food processing THE RUSSIAN DIRECT InvestmentFundiscollaboratingwith IndianpharmagiantDrReddy’s Laboratoriestoconductclinical trials of the Sputnik V vaccine against Covid-19 as well as its distribution, RDIF CEO Kirill Dmitrievsaid onWednesday. The RDIF is in talks with Indianregulatorstoensurethat all the requirements forclinical trials are being met,he said. “The RDIF and Dr Reddy’s Laboratories,a global pharmaceutical company with headquartersinIndia,haveagreedto supply 100 million doses of the Russian Sputnik Vvaccine and 75,006 Aug: Domestic air passenger traffic drops 76% y-o-y Contesting recovery cap of $198.43 m put by govt, Vedanta-Videocon contended this was to apply to only such facilities needed to achieve production capacity of 35,000 barrels of oil a day, which was met by drilling of 14 wells;. 21 wells under PSC weren’t to be developed within cap Financial market conditions in India eased significantly due to rate cuts, targeted liquidity infusion PRESS TRUST OF INDIA New Delhi, September 16 5,574 TOTAL TAX collection of the Centre, including advance tax collection for Q2, fell 22.5% to `2,53,532.3 crore till September 15 of the current fiscal against the year-ago period, according to an I-T department source, reports PTI. All three Malaysian courts, Delhi HC had rejected govt’s plea High frequency indicators point to trough in global economic activity in April-June; subsequent recovery underway in several economies Domestic policies must focus on right mix of local and foreign content in exports while aiming to enhance participation in global value chains Dr Reddy’s seals deal with Russia 1,07,106 IN A SETBACK to the government,which has in recentyears challenged a few prominent international arbitral awards concerningIndianprojectswith not much success,the Supreme Court on Wednesday allowed Vedanta and Videocon Industries to recover $476 million, instead of $198 million capped by the petroleum ministry, for their joint development of the Ravva oil and gas fields off the Andhra Pradesh coast between 2000 and 2007. A Bench comprising justice SA Nazeer, Indu Malhotra and Aniruddha Bose upheld the Delhi High Court’s February judgment that allowed Vedanta’spredecessorCairnIndiato implement the foreign arbitration award of January18,2011, for the higher recovery.The tribunal had held that the companies were entitled to costs of $278 million, in excess of the $198 million. The counter- THE CHIEF CONCERN of the banking system should be the protection of depositor interests, and the debt restructuring scheme has been designed with a view to preserve financial stability, Reserve Bank of India (RBI) governor Shaktikanta Das said on Wednesday. Das added that while some economic indicators are showing signs of stabilisation, the recovery is not yet “fully entrenched”. Speaking atan online event organised by the Federation of Indian Chambers of Commerce and Industry(Ficci),Das said,“You are calling it restructuring; we call it a framework forresolution of Covid-related stressed assets.” Recovery not yet fully entrenched; in some sectors, upticks in June and July seem levelling off 1,550 INDU BHAN New Delhi, September 16 Govt’s total tax collection falls 22.5% till Sept 15 SC says Centre can’t impeach the award on merits, holds its enforcement does not contravene the public policy of India To cooperate on clinical trials, distribution of Covid vaccine in India 5,767 Blow to govt as apex court says ‘no unjust enrichment’ in Ravva oil and gas fields case; upholds arbitral award Recovery not ‘fully entrenched’: Das 162 THE CENTRAL Board of Direct Taxes (CBDT) on Wednesday said it has issued refunds worth over `1.06 lakh crore to over 30.92 lakh taxpayers during the April 1September 15 period, reports fe Bureau in New Delhi. This comprises personal I-T refunds of `31,741crore and corporate tax refunds of `74,729 crore, CBDT said. SPUTNIK V FE BUREAU Mumbai, September 16 Vedanta-Videocon win big in court GRADUAL REVIVAL 5,105 RECOVER $476 M IN THE NEWS Tax refunds worth `1.06L cr issued till September 15 LENDERS TO JET Airways will meet on Thursday to take a call on the revised resolution plan submitted bytwo suitors, sources close to the developments told FE. The first bidder is a consortium comprising Haryanabased Flight Simulation Technique Centre, Mumbai-based Big Charter and Abu Dhabi’s Imperial Capital Investments. Similarly,thesecondconsortium consists of Kalrock Capital and entrepreneurMurariLalJalan. FE had reported earlierthat two bidders had submitted “revised” resolution plans, as lenderswereunhappywiththe earlier proposals. “We will evaluate revised resolution plan submitted by the bidders during committee of creditors (CoC) meeting on Thursday,” a senior bank official told FE.“We have been tryingtonegotiatewithbiddersto maximise value and avoid liquidation,”he further added. Jet Airways had earlier attracted 12 expressions of interest (EoIs) from suitors, which was further narrowed down to two prospective applicants. Continued on Page 2 US PANEL REPORT Failures of Boeing, FAA caused 737 MAX crashes that killed 346 DAVID SHEPARDSON Washington, September 16 TWOBOEING737MAXcrashes that killed all 346 passengers and crew aboard were the“horrific culmination”of failures by theplanemakerandFederalAviationAdministration(FAA),aUS House panel concluded after an 18-monthinvestigation. The crashes “were not the resultofasingularfailure,technical mistake, or mismanaged event”, the House Transportation and Infrastructure Com- mittee’s Democratic majority said in its highly critical report released onWednesday. “They were the horrific culmination of a series of faulty technical assumptions by Boeing’s engineers, a lack of transparency on the part of Boeing’s management,andgrosslyinsufficientoversight bythe FAA.” The737MAXwasgrounded inMarch2019afterthecrashof Ethiopian Airlines Flight 302 near Addis Ababa which killed all 157 aboard. In October 2018,a Lion Air 5 main reasons for the crashes ■ The company’s sway over top FAA managers ■ Pressures to update the 737’s design swiftly and inexpensively ■ Faulty assumptions about the design and performance of pilots ■ What the report called a 'culture of concealment' by Boeing ■ Inherent conflicts of interest in the system that deputises Boeing employees to act on behalf of the government Source: Bloomberg 737 MAXhad crashed in Indonesia killing all 189 on board. “Boeing failed in its design and development of the MAX, and the FAA failed in its oversightofBoeinganditscertification of the aircraft,” the report said, detailing a series of problems in the plane’s design and the FAA’s approval of it. Boeingsaidit“learnedmany hardlessonsasacompanyfrom the accidents ... and from the mistakeswe have made”. Itsaidithadcooperatedfully with the House committee and New Delhi that revised designwork on the 737MAXhadreceivedintensive internal and external review involving more than 375,000 engineering and testing hours and 1,300 test flights. The FAA said in a statement it would work with lawmakers “to implement improvements identifiedinitsreport”.Itadded it was “focused on advancing overall aviation safety by improving our organisation, processes,and culture”. Continued on Page 2
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