OPINION, P6 COMPANIES, P4 ASHOK GULATI Decentralise MSP procurement, PDS to deal with farm protests INTERNATIONAL, P8 EDITORIAL RECOVERY FROM COVID TECH KNOW RBI’s options narrow as inflation and inflows both rise, will have to keep repo unchanged Oyo has close to $1 bn to fund regular ops: Agarwal to employees Canada plans digital tax in 2022 on global giants like Facebook, Google KOLKATA, WEDNESDAY, DECEMBER 2, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. 30 NO. 27, 14 PAGES, `6.00 (NORTH EAST STATES & ANDAMAN `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 44,655.44 ▲ 505.72 NIFTY: 13,109.05 ▲ 140.10 NIKKEI 225: 26,787.54 ▲ 353.92 HANG SENG: 26,567.68 ▲ 226.19 `/$: 73.67 ▲ 0.38 `/€: 88.26 ▲ 0.02 BRENT: $47.84 ▼ $0.04 GOLD: `48,314 ▼ `464 FE BUREAU Mumbai, December 1 98.4 Apr-20 Oct-20 75 Source: Industry ministry 0 12,000 4,000 8,000 6,000 4,000 2,000 0 Diesel 6,853 2,684 Jan Petrol Nov* *extrapolated from PSU retail sales 0 Nov Feb efit of a more favourable base. According to official data released onTuesday,the gross goods and services tax (GST) revenue collected in Nov- (in thousand tonnes) (` cr, RHS) 40 Nov Petrol/diesel sales Freight revenue 8,000 101.2 Jan DIWALI WASN'T EXACTLY blockbuster for auto players with most manufacturers reporting moderate growth in sales during November and that too on a low base of last year.If sales of around 14 players in the passenger vehicle segment is grossed up, then the growth during the month was around 9% compared to the same month last year. The country’s largest passenger vehicle manufacturer, Maruti Suzuki India saw its domestic sales (factory despatchestodealers)declining 95.1 ember (which are mainly due to transactions in October) was `1,04,963 crore. Nov ‘19 Continued on Page 2 Nov ‘20 % Change y-o-y 21,230 22,066 9.4 Hyundai Motor 4 M&M FE BUREAU Mumbai, December 1 ■ New farm laws will bring farmers better opportunities ■ Also, usher in new technologies in agriculture FARMERS SAY ■ New farm laws would lead to dismantling of the MSP system ■ Also, farmers would be left at the mercy of big corporates Continued on Page 2 Britain's Prime Minister Boris Johnson holds a vial of the Oxford/AstraZeneca Covid vaccine candidate at Wockhardt's manufacturing facility in Wales Stocking up FE BUREAU Foreign flows keep rupee strong With FPIs lapping up Indian equities, portfolio flows in 2020 are nudging $15 billion. This has held up the rupee, which on Tuesday rose to a more than one-month high vs the dollar Net FPI flows into equity ($ mn) `/$ 15,000 10,000 5,000 0 -5,000 -10,000 9,559 GOVT SAYS VOX POPULI 2,506 Farmers unions’ leaders at the Vigyan Bhavan in New Delhi on Tuesday endedwithout anyresolution. The meeting at Vigyan Bhawan remained inconclusive and the government has calledforanotherroundofdiscussions onThursday,December 3, union leaders said. Government officials said the dialogue would continue and the next round of talks has been scheduled forThursday. However, another round of meeting got underway later in the evening at the Agriculture Ministry with representatives ofBharatiyaKisanUnion(BKU), the officials said. BKU leader Naresh Tikait also said another delegation of farmer leaders wasmeetingthegovernmentat 7 pm.He said issues other than the recently enacted farm laws are also likely to be discussed, and mentioned power tariffs forfarmersamongtheprobable talking points. Themeetingwasexpectedto be attended by representatives from Haryana, Uttar Pradesh, Delhi and Uttarakhand,Tikait told reporters. This meeting began soon after the end of the first one with a much larger group atVigyan Bhawan,where thefarmerrepresentativeswere unanimous in seeking repeal of the three laws. -767 THE FOOTPRINTS of Indian-origin corporate executives at multinationals is expanding, with Sandeep Kataria taking over the reins of footwear major Bata as its global CEO, reports PTI. From FMCG majors to IT titans, Kataria joins the league of Indianorigin executives who have climbed the highest echelons of corporates across diverse sectors globally. From Nooyi to Pichai to Nadella, the list of such people at the helm of multibillion dollar enterprises is long. Kataria has been elevated as global CEO of Bata from CEO of Bata India. THE GOVERNMENT ON Tuesdaysuggestedsettingupacommitteetolookintoissuesraised by farmers protesting against new farm laws, but it was rejected by representatives of 35agitatingorganisationsduring their marathon meeting withthreeunionministersthat PRESS TRUST OF INDIA New Delhi, December 1 6,096 Kataria at Bata helm: Footprints of India-origin corp honchos expand Yes Bank in talks with So Hum Bharat to take 9.99% 1,153 THE WRITE-DOWN of Lakshmi Vilas Bank’s (LVB) Basel III tier-II securities is credit negative for holders of junior securities because they will lose their investment, but is credit positive for bank depositors and senior creditors because of the lossabsorption capacity provided by tier-II, Moody’s said on Tuesday, reports fe Bureau in Mumbai. This marks the first time that an Indian bank has written down tier-II securities and follows Yes Bank’s write-down of its additional tier-I (ATI) securities earlier in the year for the same reason. PAGE 10 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov 2020 Source: Bloomberg 72.50 73.00 (Inverted scale) 73.14 73.67 73.50 74.00 74.50 75.00 Oct 1, ‘20 Dec 1, ‘20 YES BANK IS in talks with the newly-foundedSoHumBharat Digital Payments for a 9.99% equitystake in a proposed new umbrellaentity(NUE)forretail payments. So Hum and Yes Bank will jointlywork towards the NUE’s product and business strategy, the former said in a statement on Tuesday. PromoterInfibeamAvenues haspickedupa33.33%stakein So Hum, founded by Navin Surya,chairman-emeritus,Payments Council of India (PCI). Surya said Yes Bank has a fintech-first strategy, much like that of So Hum. So Hum is in discussions with multiple fintechpartnerstoworkonandcocreate newand innovative payment products and solutions for multiple use cases and for rendering its services to the masses, a statement said.“This would help us growdigital payments consumers from 100 million to 500 million and also drive digital consumer spends from 18% to 50% in the economy,”it added. Continued on Page 2 COVID BITES Wendy’s to open 250 cloud kitchens SARITHA RAI December 1 WENDY’S HAS STRUCK a deal with India’sRebelFoodstoopenabout250 so-called cloud kitchens across the country, one of the most ambitious effortsyettoservecustomersthrough delivery rather than the traditional fast-foodstoresastheindustryadapts to the coronavirus pandemic. The US company is experimenting with a new format as the Covid19outbreakmakesmanyconsumers unwilling or unable to visit traditional stores. Cloud kitchens, which derive their name from cloud computing,are remote facilities without Time to Rebel 4 Bajaj Auto Unions reject govt offer to set up panel; talks to continue 2,473 ‘Tier-II write-down positive for LVB depositors, other senior creditors’ 14 Hero MotoCorp ● NUE PIE 1,719 QuickPicks 2.4 Toyota Kirloskar 5,75,957 44,600 48,800 1.7 Maruti Suzuki 8,312 8,508 However, in November, the demand for workbothatthehouseholdaswellastheindividual levels fell in comparison to October. Thismaybesignallinganimprovementin theeconomy,aspartofthefallindemandmay havebeenduetoapick-upinconstructionand assorted service industries. ■ Page 2 1,41,400 1,38,956 THE DEMAND FOR work under the rural employment scheme (MG-NREGS) jumped in May as the lock-down was eased, peaked in June,but continued to remain at elevated levels through October, according to an official data, reports Surya Sarathi Ray in New Delhi. 5,05,944 Rural jobs scheme: Demand for work falls in November He was arrested by the Enforcement Directorate (ED) in September 2020 under the Prevention of Money Laundering Act (PMLA) in the alleged ICICI Bank-Videoconmoney-laundering case. ■ Page 3 FARMERS’ AGITATION Those with a credit score of 750 and above are seen as financially more disciplined, and are thus rewarded by lenders with preferential treatment such as lower interst rates on loans ■ Personal Finance, P9 Continued on Page 2 2,07,775 105.2 90 -37.9 Oct 56.3 120 Services PMI 80 Note: Reading below 50 suggests contraction and above it indicates expansion Source: IHS Markit 120 105 (m tonne) Nov-20 135 -2.5 1,98,933 Jan-20 10 0 -10 -20 -30 -40 Freight loading 54.1 (in bn units) 2019 2020 « 60 50 40 30 20 10 0 Manufacturing PMI Power demand (% change, y-o-y, in output of 8 infra industries) « Continued on Page 2 July Aug Sept Oct Nov Core sector -31 Score 900 KaulwhiledismissingKochhar’s appeal upheld the Bombay HC orderthatheldthatherservices were not governed by any statute,“but it is a purely contractualrelationshipwithICICI”. AFTER THE POST-LOCKDOWN blip in transactions, driven by release of pent-up demand and festive consumption,a set of economic data for the October-November period signaled the dire warning that absent concrete and expeditious stimuli,the fragile recovery might be fizzling out. The economy might have contracted in the October-December quarter, at a rate even sharper than 7.5% in the previous quarter,despite the ben- FY 2020-21 « Credit ■ She stands to lose her pensionrelated benefits FE BUREAU New Delhi, December 1 FY 2019-20 (in ` crore) 2%onayear-on-yearbasis.The five-day period of Diwali sales forMarutithisyearwasaround 40,000 units compared to around 39,000 lastyearduring the same festival (last year Diwali fell in October). The commentary from the players were mixed. While Maruti maintained its stance that though the pent up demand was slowly petering out, sales should be fine till December. Others like Mahindra expressedoptimismthatsinceeconomic activities are showing signs of picking up the demand momentum could remain intact in the coming months. Autoplayershaddespatched hugevolumesduringOctober— one of the highest in recent times—tostockdealershipsfor the festival period. « 300 ■ On March 5, HC had dismissed Chanda Kochhar's plea against termination as MD and CEO Trends in GST collections « A COURT ON Tuesday rejected a bail plea of businessman Deepak Kochhar, husband of former ICICI Bank chief executive officer Chanda Kochhar and an accused in a money-laundering case, reports PTI. Six ways a higher credit score can bring you benefits ` ■ It said the issue falls within the realm of a private bank and employee Core sectors, power demand, auto/fuel sales barely enthuse; GST, PMI kosher; rail freight up PMLA case: Court refuses bail to Deepak Kochhar Special Feature Loan 'won't interfere with the Bombay HC order' Pent-up demand phase seen to be slowly petering out « PAYTM ANNOUNCED THAT it has waived all charges on merchant transactions, reports fe Bureau in New Delhi. It is now enabling merchant partners to accept payments from Paytm wallet, UPI apps, RuPay cards at zero charges. THE SUPREME COURT on Tuesday rejected Chanda Kochhar's appeal against the Bombay High Court’s March 5 orderwhich had dismissed her pleaagainstherterminationas the managing director and CEO of ICICI Bank, saying the issue fallswithin the realm of a private bank and employee. The ruling is a major setback for Kochhar who now stands to lose her pensionrelated benefits, including bonuses and stock options. The Bench led by justice SK ■ The apex court said it No festive cheer in Nov car sales « No charges on Paytm merchant transactions INDU BHAN New Delhi, December 1 ORDER, ORDER -8,390 INDIA'S DIESEL SALES fell 7% year-on-year in November after rising for the first time in eight months in October, industry data showed on Tuesday, reports PTI. Sale of diesel, the most used fuel in the country, was, however, 8% higher month-on-month. Apex court rules her services were not governed by any statute but were purely contractual in nature Revival doubts rise on weaker Oct-Nov 414 Diesel sales fall 7% in November, petrol sales up 5% SC rejects Kochhar’s plea on termination DULL DIWALI GROWTH PANGS 1,373 SERUM INSTITUTE OF India on Tuesday denied charges that a Covid trial volunteer suffered serious side effects from a vaccine developed by AstraZeneca and Oxford University, saying that the vaccine is safe and immunogenic, reports PTI. "We would want to assure everyone that the vaccine won't be released for mass use unless it is proven immunogenic, and safe," it said. ICICI BANK CASE 1,02,083 87,422 98,202 86,449 91,916 95,480 95,379 1,05,155 1,03,491 1,04,963 IN THE NEWS ‘Oxford vaccine safe, no co-relation with side-effects’ The US company strikes deal with Rebel Foods, believes the alliance largest yet in the industry Rebel Foods isworld’s largest cloud-kitchen operatorwith over 300 locations It followed its burger chains rival McDonald’s into India in New Delhi in 2015 seating orcashiers that prepare food exclusively for delivery. Wendy’s, with nine brick-andmortar outlets in India, said it believes its cloud kitchen alliance is the largest yet in the industry. Rebel Wendy’s has with 6,800 restaurants in 30 markets worldwide Foods,backed bySequoia Capital and Goldman Sachs Group,is theworld’s largest cloud-kitchen operator with more than 300 locations. Continued on Page 2 Kolkata
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