OPINION, P6 ECONOMY, P2 KUMAR V PRATAP Rise of renewables could mean end of state-run discoms INTERNATIONAL, P8 EDITORIAL PNB SCAM CASE MARKET DEBUT With the recent onion stocking curbs, govt shows consumers' interests trump farmers' UK court rejects Nirav Modi's seventh bail attempt: CBI Ant Group to raise up to $34.4 bn in world's biggest public offering CHENNAI/KOCHI, TUESDAY, OCTOBER 27, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XLII NO. 147, 16 PAGES, `6.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 40,145.50 ▼ 540 NIFTY: 11,767.75 ▼ 162.60 NIKKEI 225: 23,494.34 ▼ 22.25 HANG SENG: 24,918.78 ▲ 132.65 `/$: 73.85 ▼ 0.25 `/€: 87.28 ▼ 0.13 BRENT: $40.83 ▼ $0.94 GOLD: `51,048 ▲ `4 SBI ON MONDAY said it has raised `5,000 crore by issuing Basel-III compliant bonds, reports PTI. The committee of directors of capital raising met on Monday and accorded its approval to allot 50,000 Basel-III compliant non-convertible, taxable debt instruments, SBI said in a filing. THE US, RUSSIA and France setnewdailyrecordsforcoronavirus infections as a second wave swelled across parts of the Northern Hemisphere, forcing some countries to impose new curbs. More than 42.9 million people are reported to have been infected bythecoronavirusgloballyand 1,151,929 have died, according to a Reuters tally. The US has the highest number of deaths and infections. In Europe, the picture was unrelentinglygrimasastringof countries saw record increases, led by France, which posted more than 50,000 daily cases Demat Account RSI 450 3,068 3,010 2,895 2,900 2,790 2,680 3,075 2,897.8 2,950 Open Close 2,700 445 440 429 430 Open Close Prev. close: 3,109.1 410 Open Close Prev. close: 444.75 The mass consumer is not coming back in a hurry as this end of the market is under a lot of pressure. — RAJIV BAJAJ, MD, BAJAJ AUTO in a hurry as this end of the market is under a lot of pressure,”Bajaj said.While domestic motorcycle sales were down 3% year-on-year, the 100 cc portfolio of CT100 and Platina motorcycle sales declined by 30% y-o-y, Bajaj 2-3% 5% Likely new land licensing fee by railways, versus 6% since April Likely annual increment, linked to retail inflation, compared with 7% now Land license tenure to private players to be extended to 35 years from 5 years now `7,206Centre’s 30.8% crore Market value of stake on offer at Monday's closing price, down 34.5% from Nov 20 level when Cabinet approved sale lease rentals to the transporter on a per-container (20-feet equivalent unit container) basis, which entailed much lower outgo. Continued on Page 13 Before investing in direct equities, evaluate your risk appetite and return expectations as the stock market is often driven by greed, fear and irrational behaviour ■ Personal Finance, P9 QuickPicks Novartis sues Aurobindo to block copies of dry-eye drug NOVARTIS SAID Aurobindo’s proposed generic version of a treatment for dry eye infringes 15 patents for Xiidra, which Novartis acquired in 2019 from Takeda for $3.4 billion, reports Bloomberg. Novartis is seeking a court order blocking copies until the patents have expired. ‘Over 40% of system credit and 75% of borrowers will benefit’ CRISIL ON Monday said that over 40% of system credit and 75% of borrowers would benefit from interest-on-interest (compound interest) concession offered by the government, reports fe Bureau in Mumbai. The total impact to the exchequer due to the scheme was seen at `7,500 crore as per Crisil. PAGE 10 Findings on blood tests carried out on a subset of older participants echo July data that showed robust immune responses in healthy adults ages 18 to 55. ■ Page 8 Says renewable capacity will reach 175 GW by 2022, domestic airline fleet will double by 2024 FE BUREAU New Delhi, October 26 420 2,825 Prev. close: 3,083.15 WHILE PASSENGERVEHICLE (PV) manufacturers seem to have done good business during the Navaratri festival and are looking forward to even better sales during Diwali, business has been dull fortwowheeler players. Rajiv Bajaj, MD, Bajaj Auto, on Monday said in an interview with CNBCTV18 sales had been disappointing during the Navaratri festival, especially in the entry-level 100 cc segment. “The mass consumer is not coming back 3,143.9 indicated. The company has seen a spurt in demand in the premium segmentwith Pulsar sales going up 28% y-o-y and the KTM and Husqvarna sales going up 25%. Continued on Page 2 SALES OF STEEL to the automobile sector did particularlywell in the second quarter of the current fiscal, surging 33% year-on-year, SeshagiriRao,joint MD and CFO, JSW Steel,told Shubhra Tandon. Five quick tips for first-time equity investors 70 60 50 40 30 Continued on Page 2 Lancet: Ban on public events can bring down transmission rate by 24%, Page 8 Intra-day, Oct 26 (BSE) 3,200 ACOVIDVACCINE candidate developedbytheUniversityof Oxford with AstraZeneca has produced a robust immune response in old and young adults, reports Bloomberg. Special Feature Volume for the first time on Sunday, while the continent passed the thresholdof 250,000deaths. Intra-day, Oct 26 (BSE) 3,120 Intra-day, Oct 26 (BSE) ‘Didn't expect such sharp revival in auto sector’ Railways to slash rentals, Concor sale to get a leg-up THE LEASE RATES for industrial use of the railways’ surplus land may be slashed across the board soon with an extension of the licence period to 35 years from 5 years now for private players. The move could not only encourage commercial use of these land parcels, including as real estate, but could also boost investorinterest in Container Corporation of India (Concor), which is being sold to a strategic buyer in the current financial year. Itwas onlyinApril thisyear that the railways notified a new land licensing fee (LLF) regime, and extended it to its very own Concor. Until then, Concor had been paying land — TEDROS ADHANOM GHEBREYESUS, WHO DIRECTOR GENERAL FE BUREAU Mumbai, October 26 Hero MotoCorp TVS Motor Astra-Oxford shot produces immune response among old and young adults ● LAND LEASE PRASANTA SAHU New Delhi, October 26 This is a dangerous moment for many countries in the northern hemisphere as cases spike. We still have a long haul ahead of us. Bajaj Auto Raosaidsuchasharprevivalhad not been expected and while the commercial vehicles segment was still a bit of a laggard, the offtake fromtherestoftheautomobilesectorwas improving. ■ Page 4 PRIME MINISTER NARENDRA Modi on Monday reaffirmed thegovernment’scommitment to achieving India’s energysecurity goals, including the raising of the country’s renewableenergycapacityto175giga watt (GW) by 2022 from under 95 GW now and oil refining capacity to 400 million tonne (mt) from 250 mt at present. Amid dire predictions of a contraction in global energy demandoverthenextfewyears (it dropped by a third in Q1), Modi stressed that Indiawould emerge as a “leading energy consumer”, with a likely near doubling of its consumption overthe long-term. Addressing the CEOs of leadingglobaloil&gascompanies who participated in India EnergyForumorganisedbythe Niti Aayog and ministry of petroleum and natural gas via video conferencing, the prime minister said the country’s domestic airline fleet would RIL DEAL IN WHAT COULD be a long drawnlegalbattleahead,Future Retail on Monday hinted at challenginganarbitrationorder thatputatemporaryholdonits `24,713-croredealtosellassets to Reliance Industries. Future Retail said it wasn’t party to the agreement under which Amazon.com had invoked arbitration proceedings, and therefore, actions takenbyitsboardcannotbeheld backinarbitrationproceedings. Future Retail said it is in the process of examining the interim order and it has to be tested under the provisions of Indian Arbitration Act in an appropriate forum. “As per advice received by FRL,all relevant agreements are governed byIndian lawand provisions of Indian Arbitration Act for all intents and purposes and this matter raises several funda- Future Retail Intra-day on BSE (`), Oct 26 80 77 74 71 68 65 expandfrom600nowto1,200 by2024.Accesstoenergymust be affordable and reliable, he said, adding that energy securitywasatthecoreofthecountry’s policyplanning. Continued on Page 2 Kotak Mahindra Bank Intra-day on NSE (`), October 26 1,440 1,416.9 73.85 1,420 75.25 Open 1,380 Close 1,360 RIL 1,340 Intra-day on BSE (`), Oct 26 2,120 2,090 2,000 Previous close: 1,383.05 1,320 Open Close 2,101 2,028.70 2,060 2,030 1,399 1,400 Previous close: 77.80 Previous close: 2,112.55 Open Close mental jurisdictional issues whichgototherootofthematter….In any enforcement proceedings, FRL would take appropriatestepstoensurethat the proposed transaction will proceed unhindered without anydelay,”Future Retail said. Continued on Page 13 TAKING OFF India’s first seaplane lands on Sabarmati river ahead of its inauguration by Prime Minister Narendra Modi, in Ahmedabad on Monday NIRMAL HARINDRAN Covid caution Supreme Court dismisses Mallya’s offer to pay dues, UBHL to be wound up firm’swinding up and liquidation,reports fe Bureau in New Delhi. UBHL’s offer to settle its `14,518-crore dues will be no longer valid. ■ Page 4 FE BUREAU Economy normalising, but at a slower pace The momentum in real activity has carried forward in October — NIBRI is averaging 82% so far — suggesting the economy continues to normalise, albeit at a slower pace than in September. The flatter pandemic curve is a tailwind for growth but caution is advised as the festive season and Bihar elections could lead to a reversal. 100 THE SUPREME COURT on Monday dismissed fugitive industrialist Vijay Mallya’s ‘offer’ to pay the huge dues of UBHL to lenders, paving thewayforthe 102-year-old — NARENDRA MODI, PRIME MINISTER KMB posts good profit, is second-most valued lender Future may fight arbitration award FE BUREAU New Delhi, October 26 The pandemic had resulted in global energy demand falling by a third, investment decisions are being impacted and (there are) predictions of a demand contraction over the next few years. But India is likely to see energy consumption double over the long term. The focus is to make India a gas-based economy. ● SEPT QUARTER Nomura India Business Resumption Index (NIBRI) 90 80 70 83.5 SBI raises `5,000 cr by issuing Basel-III compliant bonds JAMES MACKENZIE & LISA SHUMAKER Milan/Chicago, October 26 Auto retail body estimates that sales in October will see double-digit decline Modi sticks to energy targets 81.1 NTPC ON MONDAY said its board will on November 2 consider a proposal to buy back the company's equity shares, reports PTI. Last week, NTPC was granted exemption from certain buyback norms for the proposed merger of its wholly-owned arms with the parent firm. New curbs imposed; record daily rises in US, Russia, France No Oktoberfest for two-wheelers 61.6 NTPC board to consider buyback of shares on Nov 2 Second wave swells across US, Europe DEMAND SLUMP MISSING CHEER 68.1 INDIAAND THE US will ink a landmark defence pact on Tuesday, reports PTI. The pact will provide for sharing of high-end military technology, logistics and geospatial maps between their militaries, officials said after defence minister Rajnath Singh held talks with his US counterpart Mark T Esper. COVID 100 IN THE NEWS India, US to ink landmark defence pact today ` 60 ` 50 40 Feb 16 Mar 29 Jun 7 Sept 13 Oct 25 Source: Google, Apple, CMIE, Bloomberg and Nomura Global Economics FE BUREAU Mumbai, October 26 AFALLINprovisionsandstrong treasury gains helped boost Kotak Mahindra Bank’s net profit by a smart 26.7% yearon-year to `2,184.5 crore for the September quarter. Even though advances fell 4% y-o-y, thelender’snetinterestincome increased by a good 17% y-o-y. Provisions during the quarter declined nearly10%y-o-y. The bank’s market capitalisation hit `2.8 lakh crore on Monday making it the secondmost valued lender after HDFC Bank and ahead of rival ICICI Bank. The private sector bank refused to offer any comment on a possible takeover of IndusInd Bank. “We will not commentonanyspeculation.As andwhenthereissomethingto report,we will get back,” Jaimin Bhatt,presidentandGroupCFO said.An acquisition would bolsterKMB’sassetsbyabout80%. HATE SPEECH Big Tech calls for EU legal protections to tackle bad content NATALIA DROZDIAK October 26 BIG TECHNOLOGY PLATFORMS are calling on the European Union to design new rules that would protect them from legal liabilities for actively removing hate speech and other illegal or harmful content. Such a safeguard would result in “better quality content moderation” by incentivising platforms to remove bad content while protecting free expression, Edima, an association representing Facebook, ByteDance-owned TikTok,Alphabet’s Google and others, said in a paper due to be published on Monday. The association said it would send the document to officials in the European Commission, Parliament and Council. The call comes as the European Commission, the bloc’s executive body, prepares digital policy measures aimed at giving platforms greater responsibility for what users ILLUSTRATION: ROHNIT PHORE post on their sites. The aim is to curtail the spread of harmful content and illegal products, such as unsafe toys. Platforms like Facebook and YouTube have come under intense scrutiny in recent years for failing to do enough to police activity such as hate speech that’s blamed for inciting violence in places like Myanmar, or for letting Russians spread disinformation to influence the 2016 US presidential election and the UK’s Brexit vote. “All of our members take their responsibility very seriously and want to do more to tackleillegalcontentandactivityonline,”said Siada El Ramly, director general of Edima. “A European legal safeguard for service providers would give them the leeway to use their resources and technology in creativeways in orderto do so.” The new rules would be an update to longstanding legal protections forinternet firms. Continued on Page 13 CHENNAI/KOCHI