NATION, P4 PLI scheme will help India nurture manufacturing giants SUNIL JAIN MINING REFORMS US PRESIDENTIAL ELECTION There have been some reforms in the last few months, but much more needed to move the needle At least 500 blocks to be auctioned in 2-3 years: Mines minister Trump backtracks on acknowledging Biden won, concedes 'nothing' NEW DELHI, MONDAY, NOVEMBER 16, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 222, 14 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 SPECTRUM AUCTION ● SWEARING-IN Kumar to take oath as Bihar CM today DoT sticks to Trai prices; Cabinet to take final call With the burden of AGR dues & no procurement of Chinese gears, telcos make a case for lowering rates proposed by Trai: About 8,300 MHz The airwaves are valued worth `5.22 lakh cr EVEN AS INDIA’S export promotion schemes have been underattackforseveralyearsin multilateral forums for their subsidycontent,thesehavealso been a disincentive for firms to grow. Consider the latest variant, the Merchandise Exports From India Scheme (MEIS), which is already on its way out. Between FY17 and FY19,while exportscoveredundertheMEIS LOSING SHEEN (% share, in FY18) MEIS Non-MEIS Export value Continued on Page 2 Tariff lines New worry: Exports to West and South Asia crash, may delay recovery Cost-side story SOUMITRA CHATTERJEE 1935-2020 ■ SCIENCE & TECH, P12 As smartphone adoption picks up, banks need to look for other methods for multi-factor authentication QuickPicks Fake invoices for GST credit: Govt may invoke COFEPOSA AFTER A nationwide drive against fake invoices that tend to mar the GST system, the government is examining if the offenders can be booked under COFEPOSA (Conservation of Foreign Exchange and Prevention of Smuggling Activities Act), apart from taking action against them under GST laws, I-TAct and PMLA, sources said, reports fe Bureau in New Delhi. PAGE 2 BPCL privatisation: Bid closes today, all eyes on Reliance INITIAL BIDS for privatisation of BPCL will close on Monday amid indications of supermajors UK's BP Plc, Total of France and Saudi Aramco unlikely to bid, reports PTI. The Centre had on four occasions extended the date of putting in the preliminary EoIs. The current deadline is November 16. PAGE 3 (% chg y-o-y) -33.00 Q4 Q1 Q2 FY20 FY21 PBT SHUBHRA GUPTA New Delhi, November 15 AFEWMONTHS back,aphotograph from 1965 surfaced on social media platforms. It had fourbeautifulpeople,posingon the red carpet at Berlinale (Berlin International Film Festival), at which Satyajit Ray’s period classic Charulata won the Best Director prize,and Madhur Jaffrey got Best Actress for James Ivory’s Shakespeare-wallah, whosemusicwasscoredbyRay. In the frame,flanking Felicity Kendal and Jaffery, resplendent respectivelyin a gown and a sari,were two very swish gentlemen:ShashiKapoorinasherwaniandSoumitraChatterjeein abandhgala,competingequally on the dapper-and-debonair stakes.The clean-cut Kapoor’s dimpled charm was a familiar thing, but it was Chatterjee, a cigaretteheldtohislips,looking impossiblyhandsome,whotook ourcollective breaths away. Continued on Page 4 Q3 Q3 Q4 Q1 Q2 FY20 FY21 Tax (% chg y-o-y) -87.47 Getting 2FA right Q3 18.40 With the govt addressing concerns pertaining to its execution, the model is expected to draw road developers once again Total expenditure -1.93 -2.76 A new lease of life for HAM projects FE BUREAU Q3 (bps, chg y-o-y) Q3 Q4 Q1 Q2 FY20 FY21 RM to sales (% chg y-o-y) Q4 Q1 Q2 FY20 FY21 OPM 656.80 Net sales (% chg y-o-y) ■ INFRASTRUCTURE, P11 FY19 Despite reporting a drop inrevenues, India Inc’s operating profits have risen sharply in the Septembr quarter thanks to a steep 15% y-o-y fall in expenditure. Companies have saved on raw materials as also on promotions and people. -76.23 Know all about flexi-cap category The new category will bring stability to investors’ portfolio as multi-cap funds can now be rebranded as flexi-cap funds FY18 Reliance Retail adds Urban Ladder to cart ASMITA DEY New Delhi, November 15 RELIANCE RETAILVENTURES (RRVL) has snapped up strugglingfurnituree-retailerUrban Ladder,asignofincreasingconsolidation in the e-commerce space.The start-up was losing ground well before the pandemic set in and had given up 40% of itsvalue between 2018 and2019,sectorwatcherssaid. RRVL will buy a 96% stake for `182 crore. Urban Ladder’s turnover in FY19 was `434 crore while the profits were `49.41crore.InFY18,thecompany reported a loss `118.66 ILLUSTRATION: SHYAM KUMAR PRASAD crore. Even as several online businessesthriveandGoldman SachsestimatesIndia’sinternet will have a gross transaction value of $180 billion byFY25,a three-fold growth over current levels, the number of burnouts too is going up. Continued on Page 2 DELHI DEBACLE Large hospitals barely have spare capacity Ventilators and ICUs available only in small hospitals ISHAAN GERA New Delhi, November 15 THE DELHI HIGH Court, last week,vacateditsstayorderand allowed the Delhi government to reserve capacity in 33 Delhi hospitals to cope with rising infections.While this mayhelp pull Delhi back from the brink, with the capital recording over 7,000 cases daily, it is unlikely to alleviate the situation. Theoccupancyratesofhospitals beds, ICUs and ventilators across the capital have been steadily increasing. Hospitalbedoccupancy,whichwas only 45% until two months ago,has risen to 53%,whereas ICU bed occupancy and ventilator beds occupancy has been teetering around 88%. Until two months ago, only 72% of ICU beds and 60% of ventilators were occupied. Continued on Page 2 Capital crunch ICU beds occupancy (in %) Overall occupancy 87.6 Govt hospitals 85.7 Total 88.5 <10 beds 70.7 10-29 beds 88.0 Over 30 beds 94.9 Ventilator beds occupancy (in %) Overall occupancy 87.8 Govt hospitals 87.8 Total 87.6 <10 beds 80.2 Over 10 beds 92.8 Infections in Gurgaon rising faster than Delhi GIVEN THE DRAMATIC rise in Covid infections in Delhi,the capital is nowin focus,reportsIshaanGera in New Delhi. However, a closer analysis reveals adjoining cities are facing as much a crisis. Delhi’s rate of growth in infections is lower than that in Gurgaon. ■ Page 4 NEW CENTRAL LAWS -5.13 ■ PERSONAL FINANCE, P9 Ray's go-to actor, our everyman FY17 MEIS exports Non-MEIS exports 9.38 9.12 9.33 10.19 10.71 12 (% growth) 14.2 31.6 FY17-FY19 -11.01 Polycab is using Oracle Cloud Infrastructure to quickly test and deploy new applications 47.8 52.2 72.5 27.5 85.6 14.4 Q2FY21 earnings -8.24 Changing growth orbits ● END OF AN ERA 142.83 ■ eFE, P8 -35.39 Is e-commerce a viable model for niche categories such as liquor and art supplies in the long run? -87.23 Offbeat and online No of exporters (` lakh cr) Delhi.Theoilrevenue-dependent West Asian nations,traditionally the third-largest destination,contributed the most to India’s export contractionthisfiscal. ■ Page 2 -7.69 ■ BRANDWAGON, P10 IT’S NOT JUST a Covidinduced slowdown in key markets — the US and the EU — that is troubling Indian exporters, reports Banikinkar Pattanayak in New Continued on Page 2 (bps, chg y-o-y) Q4 Q1 Q2 FY20 FY21 Sample of 2,334 companies (excluding banks & financials ) Q3 Corp entities scale up crop purchases from farmers PRABHUDATTA MISHRA New Delhi, November 15 CORPORATE ENTITIES AND large traders have increased their direct purchases of crops fromfarmers,thankstothenew central laws concerning marketing of agricultural produce, accordingtotradingsources.Of theirtotalpurchases,upto85% are now via the direct purchase route in states where such purchaseswereallowedevenbefore the latest laws; even in many otherstates,up to a half of their requirements seems to be met through direct transactions with farmers, with the APMC mandis catering to only the otherbalance demand. “InMadhyaPradesh,Maharashtra and Rajasthan,we used to procure 30% of soyabean from our own network and the remainingfromAPMCmandis. Now that the new laws have comeintoforce,wearemeeting 85% of our requirement from purchasesoutsidemandis,”said Rajanikant Rai, CEO of ITC’s agri-business division. Continued on Page 4 Purchase rates tad higher than mandi prices TRADERSANDCORPORATE houses are purchasing from farmers at rates a tad higher thanthelocalmandipricesin the cases of manycrops such aspaddy,bajraandsoyabean, -401.73 FE SPECIALS CHINAAND 14othercountries agreed on Sunday to set up the world's largest trading bloc, encompassing nearly a third of all economic activity, in a deal many in Asia are hoping will helphastenarecoveryfromthe shocks of the pandemic, AP reported from Hanoi. The Regional Comprehensive EconomicPartnership,orRCEP,was grewjust 14.2% in rupee term, non-MEIS shipments rose at a much faster pace of 31.6%, according to an FE analysis. The below-parperformance of the scheme can also be gauged from the fact thatwhile MEISbeneficiariescompriseda vast majority of the exporter community (86% in FY18), their exports stagnated at just about half of the overall outboundmerchandiseshipments. BANIKINKAR PATTANAYAK New Delhi, November 15 Q4 Q1 Q2 FY20 FY21 Source: Capitaline reports fe Bureau in New Delhi. At least a part of the savings on mandi fees/taxes andarhatiyacommissionare beingpassedontofarmersby these entities. ■ Page 4 A FAIR DEAL FOR THE FAIR SEX Women take up jobs left by migrant male workers SHUBHRA TANDON Mumbai, November 15 THE REVERSE-MIGRATION of male workers to their villages has seen women stepping into the breach. The packaging and mobile manufacturing sectors today employ many more women; their count has nearly doubled in the last seven months and they now account for 11-12% of the workforce from 5-6% earlier. That the processes in these sectors have become more digitised and automated has helped. Sudeep Sen, business head, TeamLease Services, told FE that e-commerce and warehousing companies are now open to enrolling women, having realised they are equally capable of doing the job. “There is no pushing and pulling required in ILLUSTRATION: ROHNIT PHORE Continued on Page 2 FE BUREAU & AGENCIES New Delhi/Hanoi, November 15 Misplaced focus: Surging export aids fail to boost shipments -316.85 In the past,the Cabinet has formed an inter-ministerial panel to look into such issues of pricing and payment modalities to ease the burden on the telecom companies. US response to decide if 15-nation bloc changes regional dynamics in favour of China signed virtually on Sunday on thesidelinesoftheannualsummit of the 10-nation AssociationofSoutheastAsianNations. Tough India surprised participants late last year by abandoningtheagreement,thepartners have made it clear New Delhi is welcome to rejoin the pact. Prime Minister Narendra Modi said he pulled out over concerns about how RCEP would affect the livelihoods of Indians, particularly the most vulnerable.“Theclauseallowing India to join at a later date is symbolic and shows China’s desiretobuildeconomicbridges with the region’s third-largest economy,” Bloomberg quoted ShaunRoache,AsiaPacificchief economist at S&P Global Ratings,as saying. -934.91 2016, a total of 2353 MHz spectrum was put on sale but only 965 MHz got sold RCEP pact clinched, coup for China; India may join later -547.14 ■ In the last auction held in TRADE WINDS -84.38 Reserve price for spectrum in 700 MHz used for 4G services: `6,568 cr per MHz Parliament building engulfed in smog, in New Delhi on Sunday. Delhi recorded the worst air quality in four years the day after Diwali as pollution levels in the city and its suburbs crossed the ‘emergency’ threshold on Sunday due to stubble burning and firecrackers 214.08 ■ But spectrum in 3,3003,400 MHz, 3,400-3,600 MHz, used for 5G services, is not likely to be auctioned TOXICITY -185.97 ■ Bands proposed for auction: 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300-3,400 MHz, 3,4003,600 MHz -14.98 at reserve price 58.33 WITH THE DEPARTMENT of telecommunications(DoT)not proposing a reduction in reserve prices for spectrum auction,which is likely to take place sometime during the January-March period,it is the Union Cabinet which would decide on the matterwhen the issue is put up before it. Sources said that the DoT has prepared a draft Cabinet note in which it has outlined the reserve price for auctions which also includes 4G spectrum,as recommended by the Telecom RegulatoryAuthority of India (Trai).It has also mentioned that it had asked the Trai to lowerthe prices but the latter stood its ground. Sources said that given the circumstances, it is the Union Cabinet which would take a call whether prices should be reduced or not. ■ Spectrum quantum as -40.58 KIRAN RATHEE New Delhi, November 15 NITISH KUMAR ON Sunday met Bihar governor Phagu Chauhan, after being unanimouslyelected as the leaderof the NDA, and staked claim for the formation of the new government in Bihar,reports PTI. Kumar said the swearing-in will take place on Monday and parried questions about details like whether BJP leader Sushil Kumar Modi would be returningashisdeputy.“Thegovernor was handed over the letter of support from all four constituentsoftheNDA.Asperhisdirection,weshallbetakingoathat the Raj Bhavan,tomorrow,around 4-4.30 PM,” said Kumar. IT’S A DEAL Pvt hospitals ISHTIAQUE AHMED INTERNATIONAL, P14 Pvt hospitals OPINION, P6 warehouses anymore, there are machines to do that. However, you require people to manage the work flow and this can be done even by women,” Sen said. The good news is that some of them have been able to work their New Delhi way up to assume managerial roles and earn just as much as their male counterparts. They are managing inventory, stores, material and also working as customer service officers. Women have become scanning specialists and data entry operators apart from doing other jobs like sticking and packing and labeling. Continued on Page 2
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