OPINION, P6 ECONOMY, P2 INTERNATIONAL, P8 EDITORIAL BRICS SUMMIT REVVING UP Modi calls for reforming WTO, IMF and UN to bolster multilateralism Tesla to Join S&P 500 next month as largest ever new member Farm reforms key to sustaining wage-growth levels SpaceX's Crew Dragon success underscores gains of govt funding pvt space-tech firms NEW DELHI, WEDNESDAY, NOVEMBER 18, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 224, 16 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: 43,952.71 ▲ 314.73 NIFTY: 12,874.20 ▲ 93.95 NIKKEI 225: 26,014.62 ▲ 107.69 HANG SENG: 26,415.09 ▲ 33.42 `/$: 74.46 ▲ 0.14 `/€: 88.35 ▼ 0.12 BRENT: $43.75 ▼ $0.07 GOLD: `50,738 < > `0.00 — DLF makes Dow Sustainability Index debut DLF ON TUESDAY said it has listed on the Dow Jones Sustainability Indices in the emerging markets category, reports fe Bureau in New Delhi. This development, the real estate developer said demonstrates its track record for governance, social and environmental initiatives. BSNL to submit 4G tender details to tech panel BSNL IS SOON going to submit details about its upcoming 4G tender to the empowered technology group, reports Kiran Rathee in New Delhi. A DoT-led technical panel has already given its recommendations regarding the tender. FE BUREAU Chennai, November 17 EVEN AS IT put the troubled LakshmiVilasBank(LVB)under a one-month moratorium, the Reserve Bank of India (RBI) on Tuesday initiated a merger of the Chennai-based lenderwith DBS Bank India (DBIL).The RBI saidDBSwouldbringin`2,500 crore of capital to support the bank’s business. Cash withdrawals from LVB have been capped at `25,000 per borroweruntil December16when the moratorium ends. RBI has in consultation with the Centre, under Subsection (1) of Section 36 A C A worsened steadily with the lender incurring losses over the last three years RBI’s prompt corrective action since 2019 of the Banking Regulation Act 1949,superceded the board of directors of LVB for 30 days owingto“seriousdeterioration in the financial position of the bank” and to protect interests of the depositors. Continued on Page 12 IF THE PROPOSED interim India-US trade agreement is designed to cover barely 15% of the trade between the two countries, Washington seems innogreathurrytoclincheven thislimiteddeal.Thisisevenas New Delhi, unenthused about revisiting the China-dominated Regional Comprehensive Economic Partnership FY18 FY19 11.61 (RCEP), seeks to counterbalance any potential damaging effect of the bloc on its foreign trade with bolstered ties with the US and EU, two among its three largest export markets. The proposed “limited MAJOR DEVELOPED AND developing countries,such as the US,China,South Korea,Japan and those in the EU, have erected huge nontariff barriers (NTBs) to mask the ferocity of their trade protectionism and discourage “undesirable imports”, even though they claim to maintain a low-tariff regime,reports Banikinkar Pattanayak in New Delhi. The US has put in place as many as 8,453 Index fund $90 bn Bilateral trade under proposed limited pact: $13 bn Source: DGCIS deal” with the US could cover an annual trade of about $13 billion.“The US response tothe proposal is still awaited,” a source told FE. Continued on Page 13 next year. “For 2021, oil demand is expected to grow by6.2millionbarrelsperday, y-o-y, representing a downward revision of 0.3 million barrels per day compared to lastmonth’sassessment,”the document said. ■ Page 8 NTBs,followedbytheEU(3,119),China(2,971), South Korea (1,929) and Japan (1,881), shows a commerce ministry analysis, based on the WTO data.In contrast,India has imposed only 504 NTBs. Although India’s trade-weighted average tariff of 10.3% in 2018 was higher than these countries, it was still well below a thirdofitsboundtariff,ortheWTO-permitted level,government officials argue. ■ Page 2 Due diligence for sale to be over by Dec end: Tata Steel Post Netherlands unit sale, the UK business will be made self-sustaining, sans India parent help FE BUREAU Mumbai, November 17 TATA STEEL IS expecting that the due diligence forthe sale of Netherlands business will be completebytheendofDecember.The companyhad said late last week that it was in discussionswith Swedish steelmaker SSAB AB for the sale of the Netherlands business, including Ijmuiden steelworks. Once the diligence is complete, the company will begin conversations on finalising the commercials and the negotiations on the documentation. Assuming everything goes as perplan,the deal will reach a binding stage soon after December, the company management said in a teleconference with the media on Tuesday. In addition, the process to separate Tata Steel Netherlands and Tata Steel UK business has also been initiated. The company said that this is COVID Index funds are suitable for investors who want higherthan-normal long term returns by investing in equity but do not want to take on high risk. Just be prepared to give it time to grow ■ Personal Finance, P9 ISHAAN GERA New Delhi, November 17 Bringing cloud agility to all parts of a business DellTechnologies is building the essential infrastructure for the data era, towards accelerating digital transformation with solutions that are automated, intelligent and integrated, says Michael Dell ■ eFE, P9 IN YOUR HANDS Finance minister Nirmala Sitharaman receives the five-year report of the 15th Finance Commission from its chairman NK Singh at her office, in North Block, New Delhi, on Tuesday Terrific Tuesday QuickPicks 99% rated companies unlikely to opt for restructuring: Crisil CRISIL ON Tuesday said that as many as 99% of companies rated by it were unlikely to opt for the one-time debt restructuring scheme, reports fe Bureau in Mumbai. The finding is based on a preliminary analysis of 3,523 non-MSME companies. This is despite two-thirds of the rated entities being eligible for restructuring, based on the parameters proposed by the KV Kamath panel, said the rating agency. The Reserve Bank of India had allowed one-time restructuring for personal and corporate loans hit by Covid. PAGE 10 Flipkart leads international net sales for Walmart in Q3 FLIPKART DROVE international net sales for parent Walmart during the three months ended October 2021, reports fe Bureau in New Delhi. “Strong growth in net sales at Flipkart was helped by a record number of monthly active customers,” the US-based retailer said. Net sales for the segment rose a marginal 1.3% y-o-y to $29.6 billion in August-October. Excluding currency, net sales would have grown by 5% y-o-y to $30.6 billion led by Flipkart, Canada and Walmex. PAGE 4 Kris named first chairperson of Reserve Bank Innovation Hub SENAPATHY (KRIS) Gopalakrishnan, co-founder and former co-chairman, Infosys, has been appointed as the first Chairperson of the Reserve Bank Innovation Hub, reports PTI. In August, the central bank had announced that it will set up the Reserve Bank Innovation Hub to promote innovation across the financial sector by leveraging on technology and creating an environment that would facilitate and foster innovation. PAGE 10 FE BUREAU Benchmarks scale new highs on vaccine boost Indian benchmarks climbed to new peaks on Tuesday buoyed by good news from Moderna on a vaccine to fight Covid-19 and buying by foreign players. The rally was broad-based Sensex 44,200 Nifty50 Intra-day, Nov 17 12,950 44,095.85 44,100 12,925 43,952.71 44,000 Intra-day, Nov 17 12,932.5 29,200 12,874.2 12,900 Bank Nifty Intra-day, Nov 17 29,300 29,181.3 28,792.25 43,900 12,875 29,000 43,800 12,850 28,900 43,700 12,825 28,800 43,600 Previous close 43,637.98 43,500 Open Previous close 12,780.25 12,800 12,775 Close Open Close Previous close 28,594.30 28,700 28,600 Open THE REASON FOR India’s lower infections probably lies in the fact that several states, which were either once hotspots of infections or likely to emerge as hotspots, have scaled back on testing over the last two months.In fact,a look at the fatalityrates reveals that despite lower infections, deaths in these states seem to be rising. Cases in point are Bihar,Odisha and Punjab. Given how social distancing normswere flouted during election rallies, one would have expected Bihar to be the corona hotspot by now but cases in the state have come down drastically; it is now recoding an average of 600 infections daily, down from 1,600 a day two months ago. Some of this can be attributed to a faulty testing strat- Close Prev close: 492.1 525 522.8 510 495 480 504.7 Tata Steel (BSE) Open Close Tata Steel has initiated the process of restructuring European business by separating UK and Netherlands businesses Tata Steel's aim is to make UK business self-sustaining without depending on India for support ■ Company achieved its target of reducing debt by $1 billion annually Net Debt stands at `96,495 crore at the end of Sept 2020 being done because Tata Steel will pursue separate strategic paths for the Netherlands and UK business in the future. Continued on Page 12 India could start producing Sputnik vaccine: Putin Embassy REIT to buy biz park in Bengaluru for `9,782 crore FE BUREAU New Delhi, November 17 egy and increasing reliance on rapid antigen tests — Bihar tests 90% of its samples using RAT. EMBASSYOFFICEPARKSREIT onTuesdaysaid it has agreed to acquire a large business park ‘Embassy TechVillage’ in Bengaluru from realty firm EmbassyGroup,Blackstoneand some other investors for `9,782.4crore.EmbassyREITis the country’s first publicly-listedREIT(RealEstateInvestment Trust) sponsored by Blackstone andEmbassyGroup.Itgotlisted on stock exchanges lastyear. Theproposeddealissubject to unitholders’ and regulatory approvals. The acquisition comprises 6.1 million sq ft (msf) of completed area, 3.1 msf of under-construction area, and two proposed 518keys Hilton hotels. Continued on Page 12 Continued on Page 13 ADDRESSING THE BRICS summit, Russian President Vladimir Putin said on Tuesday that India could start producing the Sputnik vaccine,, reports fe Bureau in New Delhi. The vaccine is 92% effective at preventing the virus, according to the interim trial results. He also proposed speeding up the creation of a vaccine research centre for BRICS countries. ● FLYING LOW AirAsia Group hints at possible India exit REUTERS Kuala Lumpur, November 17 29,100 540 ● REAL ESTATE Infections fall on lower testing, death toll rising Index funds: A low-cost, low-risk way to invest ` 53.09 21.93 FY21 (Apr-Sep) Special Features Expense Ratio FY20 India-US annual merchandise trade: India tariffs higher, but advanced nations have much higher NTBs OPEC+ sees oil weaker demand in 2021 OPEC AND ITS allies have revisedoildemandscenarios for 2021 with demand seen weaker than previously anticipated, a confidential document seen by Reuters shows, supporting the case for a tighter supply policy FY17 Imports from US 35.82 in late September after shareholders blocked the appointment or reappointment of seven directors to the board Exports to US 35.55 ■ LVB has been under the FE BUREAU New Delhi, November 17 ■ Bank slipped into a crisis India's goods trade (in $ bn) 52.41 ■ Financial position has Deal barely covers 15% of India-US trade; new US administration may want to review many settled issues 47.88 Cash withdrawals capped at `25,000 per borrower until December 16 Trade pact with US likely to be delayed 26.61 LVB to be merged with DBS Bank DUTCH UNIT LIMITED DEAL 42.21 STATE-OWNED ONGC ON Tuesday signed contracts for seven oil and gas blocks it had won in the latest bid round that saw scant participation from the private sector, reports PTI. Oil India signed up for the remaining four blocks awarded under the fifth bid round of Open Acreage Licensing Policy. UNDER MORATORIUM 22.31 IN THE NEWS ONGC signs contracts for 7 blocks, OIL 4 MALAYSIA’S FLAGSHIP BUDGET carrierAirAsia Group Bhd has given its strongest indication to date that it could exit India,saying onTuesdayitwas reviewing its investment in a joint venture airline there. ■ Group says operations in India draining cash, adding to financial woes ■ Airline owns 49% of AirAsia India, a JV with Tata Sons ■ It was reported last month, citing sources, Tata group is eyeing AirAsia Group’s stake The group said in a statement that its operations in India,likethoseofitsnow-shutteredJapanbusiness,havebeen drainingcashandaddingtothe group’sfinancialstress.Theairlineowns49%ofAirAsiaIndia, a jointventurewithTata Sons. Continued on Page 13 BOOK EXCERPTS Obama spent childhood years listening to Ramayana, Mahabharata LALIT K JHA Washington, November 17 FORMER US PRESIDENT Barack Obama said that he has always held a special place for India due to his childhood years spent in Indonesia listening to the epic Hindu tales of the Ramayana and the Mahabharata. “Maybe it was its (India) sheer size, with one-sixth of theworld’spopulation,anestimated two thousand distinct ethnic groups, and more than seven hundred languages spoken,” Obama writes on his fascination of India in his latest book A Promised Land. Obama says he had never been to India before his Presidential visit in 2010, but the countryhad“alwaysheldaspecial place in my imagination”. “Maybe it was because I’d spent apart ofmychildhood in Indonesia listening to the epic Hindu tales of the Ramayana and the Mahabharata, or because of myinterest in Eastern religions, or because of a group of Pakistani and Indian college friends who’d taught me to cook dahl and keema, and turned me on to Bollywood movies,”Obama writes. In APromised Land,the formerUS president Obama gives an account of his journeyfrom the 2008 election campaign to the end of his first term with the daring Abbottabad (Pakistan) raid that killed al-Qaeda chief Osama bin Laden. A Promised Land is the first of two planned volumes. The first part hit bookstores globally on Tuesday. Obama has said that moderndayIndiacanbecountedas a success story in many respects, despite bitter feuds withinpoliticalparties,various armed separatist movements, and corruption scandals. The 44th US president, in his latest book,says the transition to a more market-based economy in the 1990s New Delhi unleashed the extraordinary entrepreneurial talents of Indians, leading to soaring growth rates, a thriving technology sector, and a steadily expanding middle class. “Inmanyrespects,modernday India is counted as a success story, having survived repeated changeovers in government, bitter feuds within politicalparties,various armed separatist movements, and all manner of corruption scandals,”Obama writes. — PTI
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.