OPINION, P8 COMPANIES, P6 VIJAY KELKAR Jaswant Singh knew well the link between fiscal health & autonomy MARKETS, P12 EDITORIAL MODERNISATION PLANS TILL MARCH 31 CAG is right; India needs genuine privatisation, not one PSU being made to buy another Tata group courts investors for new digital platform RBI extends enhanced borrowing limit for banks under MSF NEW DELHI, TUESDAY, SEPTEMBER 29, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 181, 24 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: 37,981.63 ▲ 592.97 NIFTY: 11,227.55 ▲ 177.30 NIKKEI 225: 23,511.62 ▲ 307.00 HANG SENG: 23,476.05 ▲ 240.63 `/$: 73.79 ▼ 0.18 `/€: 85.86 ▼ 0.05 BRENT: $42.35 ▲ $0.43 GOLD: `49,550 ▼ `39 INTERNATIONAL HIGH ROLLERS COVID TOLL Global deaths nudge 1 million THE NEW YORK TIMES September 28 IN THE NEWS 4 Sterling Biotech directors declared fugitive offenders A DELHI court on Monday declared four directors of Gujarat pharma firm Sterling Biotech (SBL) “fugitive economic offenders“ in a `8,100-crore bank fraud case, reports PTI. The order came on a plea filed by the Enforcement Directorate. Sugar export: Govt extends deadline by three months THE GOVERNMENT has given additional three months till December to millers to undertake mandatory export of their sugar quota allocated for this year, a senior food ministry official said on Monday, reports PTI. ASTHEWORLD moves toward anothermorbidthresholdinthe pandemic,a coronavirus death tollofonemillion,thecountries where fatalities are increasing fastestremainspreadoutacross the globe, with new hotspots constantlyemerging. The number of lives lost daily to the virus has been rising through most of August andSeptember,reaching more than 5,000 in an average measured over seven days. As of Monday morning, the global death toll stood at 997,300, according to a New York Times database. On Sunday, the caseload in India surpassed six million, and the country continued to THE UNION HEALTH ministry on Monday launched awebportalthatwillprovide all important information on Covid-19, vaccine development, ongoing clinical trials and progress made in this area locally and glob- 61,34,660 TOTAL CASES DEATHS SO FAR 65,062 NEWCASES lead in daily virus-related deaths, with about 7,700 over the most recent seven-day period. The US is second, with more than 5,000, Brazil third with more than 4,800, and Mexico fourth with nearly 3,000. Those four countries account for more than half of the world’s total deaths from the virus, according to the Times database. Continued on Page 2 ally,reports PTI. The ‘vaccine web portal’ andthe‘NationalClinicalRegistry for Covid-19’have been developed by ICMR and was launched by health minister Harsh Vardhan, according to a ministrystatement. Another case of fraud Govt gets a against Wadhawans week more to finalise waiver plan This is the second application filed by the administrator against theWadhawans Monetary impact of the transactions covered amounts to `12,705.53 cr, as per the auditor The transactions occurred between FY17 and FY19 KIRAN RATHEE New Delhi, September 28 96,718 ● MORATORIUM FE BUREAU Mumbai, September 28 Half the money meant for telecom used elsewhere INDIA UPDATE Govt portal to give vaccine updates DEWAN HOUSING THE ADMINISTRATOR FOR DewanHousingFinanceCorporation (DHFL) has moved court against the company’s former promoters, Kapil and Dheeraj Wadhawan, and 38 others in connection with fraudulent transactions in the Slum RehabilitationAuthority(SRA) book. This is the second application filed by the administrator against the Wadhawans, with the first being in connection withfraud detectedin transactions with certain related parties, often referred to as ‘Bandra book entities’. Asperthetransactionauditor’s report shared with the administrator, the monetary impact of the above transactions covered under the application amount to `12,705.53 USO FUND FE BUREAU New Delhi, September 28 crore, (which includes principal of `10,979.50 crore and accrued interest of `1,726.03 crore), being the amount outstanding in the books of DHFL as on November 30,2019. THE SUPREME COURT on Monday gave one more week to the government to come up with a plan on waiver of interest charged on deferred loan EMIs during the moratorium period to ease the financial burden on borrowers. A Bench led by Justice Ashok Bhushan adjourned the matter till Monday after SolicitorGeneralTusharMehtasaid the issues were under “active consideration” of the government and a decision is likelyto be taken within 2-3 days. “Some things are beyond my control,”Mehta toldtheBench. Continued on Page 2 FIRE & FURY Punjab Youth Congress activists set afire a tractor near India Gate during a protest against the new farm laws, in New Delhi on Monday RESOLUTION TOOL 'Prepack' scheme to cut insolvency delays If implemented, scheme to be pre-IBC window for resolution of toxic assets BANIKINKAR PATTANAYAK New Delhi, September 28 THE GOVERNMENT HAS started work on a so-called “prepackaged” insolvency scheme,with aviewtooffering more options to lenders aswell as borrowers forthe resolution of bad debt,sources told FE. Theschemeisalsomeantto cut costs as well as delays in resolving toxic assets and ease the burden on the National CompanyLawTribunal(NCLT). The plan is to launch the scheme as soon as the suspensionoftheinsolvencyproceedings against Covid-related default is lifted. MORE OPTIONS ■ Prepack scheme will allow a stressed firm to prepare a resolution plan with the approval of 66% of creditors only complement the IBC and not substitute it ■ The plan can then be placed before NCLT for approval While details are being worked out, the “prepack” proposal, first mooted in 2018, will typically allow a stressed company to prepare a financial reorganisation planwith the approval of its at least two-thirds of creditors (and shareholders). The resolution plan so ■ IBC needs to be amended for the ‘prepack scheme’ to be adopted reached can then be placed before the NCLT for approval and subsequent implementation. The idea is to aid the existing insolvency framework and cut costs and time required for the resolution process. Continued on Page 2 BPCL CMD K Padmakar tremendousvalueforthecompany and increase professionalism, efficiency, technology Continued on Page 14 THE GOVERNMENT has appointedPDVaghela,secretary,departmentof pharmaceuticals, as the new Trai chairman for a period of threeyearsoruntilheattains the age of 65 years, whichever is earlier. Vaghela is an 10-year bond yield (%) 6.25 DONALD TRUMP PAID just $750 in federal income taxes in the year he was elected US president and also in his first year in the White House, according to a media report, which also said he or his companies paid $145,400 taxes in India in 2017. Trump entered the 2016 presidential race as a Republican and was elected in a surprise victory over Democratic nominee Hillary Clinton. “Donald J Trump paid $750 in federal income taxes theyearhewon the presidency.In his firstyearin the 5.95 Eight-year-old climate change activist Licypriya Kangujam during a recent protest demanding a climate change law, outside Parliament in New Delhi ■ He or his companies paid $145,400 taxes in India in 2017 ■ Trump is the only US president in modern times not to make his tax filings public White House, he paid another $750,” the New York Times reported on Sunday, citing tax return data extending over 20 years. The report came just days before Trump’s first presidential debate with Democratic rival Joe Biden on Tuesday and weeks before the November 3 presidential election. Aug 28, 2020 Sept 28 BOND TRADERS’ WORST fears maybe realised thisweek if the government announces a further increase to its mammoth borrowing plan. Traders expect the government to lift its borrowing estimate for the October-March periodto`6,00,000crorefrom the existing `5,00,000 crore, according to 10 out of 16 traders in a Bloomberg survey. The timing for this increase couldn’tbeworseastheReserve Bank of India (RBI) is expected to keep its rates on hold in its next meeting amid a persistentlyhigh inflation. “With no rate cut baked-in, the only thing the market is FROM THE REPORT income taxes at all in 10 of the previous 15 years 6.06 6.05 ‘Trump paid only $750 in 2016, 2017’ ■ Trump paid no 6.14 6.15 INCOME TAXES LALIT K JHA Washington, September 28 `55,533 cr Disbursement details for FY20 (` crore) BBNL Bharti 1,658 353 BSNL 913 RailTel 0.91 TCIL 1.27 USP 0.15 impact Total disbursal `2,926 cr Total collections for FY20 `7,961.51 crore IAS officer of 1986 batch from Gujarat cadre. Incumbent chairman RS Sharma’s tenure ends on September 30. Sharma served for a period of five years as his tenure was extended by two years. Bond traders see govt borrowing rising KARTIK GOYAL September 28 LITTLE CRUSADER Funds disbursed Balance: DEBT BURDEN 5.75 Privatisation to boost BPCL’s value: CMD ASTHE GOVERNMENTseems to be racing against time to conclude the privatisation of state-runoil-refiner-and-marketerBPCLin the current fiscal itself, its chairman and managingdirectorKPadmakarsaid on Mondaythat the imminent transaction “will unlock `54,490 cr PD Vaghela is new Trai chairman 5.85 ● EYEING FY21 DEAL and product diversification”. Hetoldthecompany’sAGM said that,“there has been substantial (positive) changes about the perception on privatisation in the minds of the employees since the first announcement on divestments was made by the government last year”. Continued on Page 2 `1,10,024 crore ■ The scheme will Continued on Page 2 FE BUREAU New Delhi, September 28 THE CASE FOR reducing the universalserviceobligationlevy on telecom service providers gets strengthened once again with the Comptroller and AuditorGeneral of India (CAG) highlighting its short transfer to the Universal Service Obligation Fund(USOF)andinsteaditbeing retained in the Consolidated FundofIndiaforotherpurposes. In its report on the Union government accounts for 2018-19, the CAG has noted: “The issue of short transfer of the levy to the USO Fund has been brought out in successive reports of the CAG on the Union Accounts for the years 2009-10 to 2014-15 but isyet to be corrected.” Total UAL collections till now (Booked figures as per DoT a/cs) Trumppaidnoincometaxesatall in 10 of the previous 15 years — largely because he reported losing much more money than he made, the report said. The US president immediatelydismissed the report as “totally fake news”. Continued on Page 14 New Delhi Not enough members, so MPC meeting pushed back THE RESERVE BANK of India on Monday said the meeting of the monetary policy committee (MPC) scheduledbetweenSeptember 29 and October 1, has been rescheduled, reports feBureauinMumbai. While RBI didn’t ascribe any reasons,except to say new dates would be announced shortly,experts point to the lack of a quorum.The government is yet to appoint three external members of the MPC after Chetan Ghate, Pami Dua and Ravindra H Dholakia completed their four-year tenuresonSeptember22. Continued on Page 14 waiting for is the borrowing calendar, and cues in the RBI policy,”said Lakshmi Iyer,chief investment officer debt at Mumbai-based Kotak Mahindra Asset Management. Continued on Page 2