OPINION, P6 ECONOMY, P2 SUNIL JAIN Need to debate reframing of FRBM Act in light of Covid GETTING READY BRIBERY TRIAL From the power sector to road, airports & even Metro projects, the PPP framework is Gajendra Haldea's RENU KOHLI INTERNATIONAL, P8 FM holds pre-Budget meeting with state finance ministers Samsung heir Lee to spend 30 more months in prison KOLKATA, TUESDAY, JANUARY 19, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL. 30 NO. 68, 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 READ TO LEAD SENSEX: 48,564.27 ▼ 470.40 NIFTY: 14,281.30 ▼ 152.40 NIKKEI 225: 28,242.21 ▼ 276.97 HANG SENG: 28,862.77 ▲ 288.91 `/$: 73.28 ▼ 0.22 `/€: 88.40 ▲ 0.32 BRENT: $54.82 ▼ $0.28 GOLD: `48,812 ▼ `473 IN THE NEWS Maruti hikes prices of select models by up to `34,000 MARUTI SUZUKI India on Monday said it has increased the price for select models by up to `34,000 to offset the adverse impact of rising input costs, reports PTI. The new prices are effective January 18, 2021, the company, which is the country’s largest carmaker, said in a regulatory filing. Companies mull buying vaccines for employees SEVERAL INDIAN companies are considering buying Covid-19 vaccines for their employees, once they become available commercially, just days after the government began a huge vaccination drive, reports Reuters. Pawan Hans: Bid deadline moved by a month THE GOVERNMENT has extended the preliminary bid submission deadline for buying Pawan Hans by a month till February 18, reports PTI. DIPAM had in December invited bids for the strategic sale of helicopter service provider Pawan Hans. BUDGET PROPOSAL SWITCHED OFF SARITHA RAI January 18 HIKE, THE MESSAGING app backedbySoftBankGroupthat aimed to compete against WhatsApp, shut down and vanished from app stores on Monday. Thestart-upvaluedat$1.4billion in a 2016 funding round announced its app was going off the air earlier this month without explanation. The app started by billionairefamily scion Kavin Bharti Mittal has failed overseveralyears todisplaceFacebook’srivalapp as the country’s go-to venue for social media and mobile communications.The country remains WhatsApp’s largest market globally. Hike, backed also by ChineseWeChat-operatorTencent Holdings, has in recent years ventured into adjacent areas CALLING ITA DAY ■ The Hike messenger app was started by Kavin Bharti Mittal, son ofBhartiAirtel chairman Sunil Mittal ■ Itwas backed by investors such as SoftBank andTencent ■ The start-upwasvalued at $1.4 billion in a 2016 funding round ■ In recent years, it has ventured into other areas such as no-frills phones and mobile entertainment such as no-frills phones and expanded even into spheres such as mobile entertainment. Continued on Page 2 Don't join WhatsApp if you can’t accept new policy, says Delhi High Court THE DELHI HIGH Court on Monday said accepting the new privacy policy of WhatsApp was a “voluntary” thing andonecanchoosenottouse orjointhe platform if onedid not agree with its terms and conditions,reportsPTI.“Itisa privateapp.Don’tjoinit.Itisa voluntary thing,don’t accept it.Usesomeotherapp,” Justice Sanjeev Sachdeva said to the petitioner, a lawyer,who has challenged WhatsApp’s new privacypolicy. ■ Report on Page 4 PRABHUDATTA MISHRA Most crops being sold below MSP -4.5 4.2 All-India weighted average mandi prices (Oct-Dec 2020) Cotton 3.8 -10.9 Groundnut Soyabean Urad Moong -10.3 0.6 9 6.6 7.1 14.7 -7.1 Arhar -25.7 -28.4 Maize -24.7 -37.5 Bajra -7.7 -22.6 -40 Jowar -20 -1 -0.1 0 Paddy (common) 20 20.6 Mandi prices of most crops have consistently been below their minimum support prices (MSPs) throughout this kharif season. The harvesting is about to come to an end. In the case of a few crops, including maize (thanks to base effect), jowar and even paddy, the market prices have been lower than even the year-ago level. % change on year Against MSP (%) Duties likely to be raised by 5-10% French energy giant to also get seat on board of directors Hike no longer Govt may hike import Total puts $2 bn into Adani Green on app stores duty on over 50 items Kharif season 40 20% STAKE Source: Agmarknet AFTAB AHMED & MANOJ KUMAR New Delhi, January 18 THE GOVERNMENT IS considering hiking import duties by 5-10% on more than 50 items, including smartphones, electronic components and appliances in the upcoming Budget, three sources privy to the discussions told Reuters on Monday. The move to increase import duties is part of Prime MinisterNarendra Modi’sAatmanirbhar Bharat campaign that aims to promote and support domestic manufacturing, said the sources. One of the sources said the government was seeking to target additional revenue of about `20,000-21, 000 crore from the moves, as it looks to shore up revenue amidst the pandemic-driven slowdown that has stung the economy. Two of the government sources also said the dutyhikes could impact furniture and electric vehicles, potentially hurtingthelikesofSwedishfurniture maker IKEA and Tesla, which is planning to launch its cars in the countrythisyear. The officials, however, did not specifyhowmuch of a hike was planned on furniture and Products for which import duties may be raised include smartphones, electronic components, refrigerators and air-conditioners Govt is targeting additional revenue of about `20,000-21,000 crore from the likely duty hikes Tax transfer to states down a fifth PRASANTA SAHU New Delhi, January 18 electric vehicles. Both IKEA and Tesla executives have previously expressed concerns about the steep duty structure their products already face in India. The list of items likely to attract steeper duties is set to include appliances such as refrigeratorsandairconditionerstoo,threeofthesourcessaid. THOUGH BUDGET FY21 assumed a growth of 21% in the Centre’s tax devolution to states, the transfers actually fell by the same rate in AprilNovember and could plunge furtherin the remainderof the year as the Centre seeks to offset the extra transfers made in the initial months. The fall in devolution was much sharper than in the Centre’s net (postdevolution) tax receipts (down 8% inApril-November),which is attributable largely to the pandemic-induced overall decline in tax buoyancy. The Centre’s aggressive use of the cess route to bolster its own tax revenue has in recent years decelerated the growth of the divisible tax pool, thereby adversely impacting the states’ tax revenue. Though trend was there throughout the 14th Finance Commission award period (FY16-FY20),it was most visible in FY20,with tax transfers declining, unconventionally. In FY20,tax transfers to states were down 15% on year. Continued on Page 2 Continued on Page 2 The hikes could hit Swedish furniture maker IKEA and Elon Musk's Tesla, which is set to drive into India this year Last year, India had raised import taxes by up to 20% on a wide range of products Wide gaps in access to Covid vaccine raise alarm GLOBAL GAPS IN access to Covid-19 vaccines are raising concerns that the continued spread of the coronavirus will breed more dangerous versions of the pathogen,weakening medical weapons and further crippling economies, reports Bloomberg. In a race to catch up with emerging coronavirus variants, wealthy countries are already benefiting from potentvaccines.WhiletheUS, Britain and European Union have given citizens about 24 million doses so far — more than half of the shots admin- istered globally — vast numbers of countries have yet to begintheircampaigns. Disparities in immunity poseathreattobothhaveand have-not states. Giving the coronavirusanopportunityto advance and generate new mutants would have significant economic and publichealth consequences, adding to the pain as the death toll surpasses2 million. ■ Report on Page 8 Total has already invested $510 million to acquire 50% stake in Adani's 2,353-MW operational solar projects FE BUREAU New Delhi, January 18 ADANI GREEN ENERGY (AGEL) said on Monday that French energy giant Total SA will acquire 20% minority interest in the company from Adani Group. The deal, valued at around $2 billion, will also provide Total a seat on the board of directors of AGEL. ThetransactionfollowsTotal investing $510 million in April 2020fortheacquisitionof50% stakeinAGEL’s2,353megawatt (MW)operationalsolarprojects inthecountry.Theacquisitionis part ofTotal’s target of building a portfolio of 35,000 MW of renewableenergycapacitygloballyby2025. Currently, AGEL’s operational renewable energy portfolio stands at 3,000 MW, with an equal capacity ■ Current renewable capacity of Adani Green: 3,000 MW company for 2025: 25,000 MW ■ Average tariff for power from Adani renewable plants: `3.26/unit (average power purchase cost of discoms pan-India is `3.6/unit) under construction. Continued on Page 2 EXTRADITION Legal hitch delaying Mallya return: Govt FE BUREAU New Delhi, January 18 THE CENTRE ON Mondaytold theSupremeCourtitismaking all efforts to extradite fugitive businessman Vijay Mallya, who’s accused in a `9,000crorebankdefault case,butthe UK government first needs to resolve a confidential “legal issue”, and hence the delay in his extradition. Solicitor General Tushar Mehta told the bench led by Justice UU Lalit that the UK government has reassured the government that it is seeking todealwiththeissuequicklyas itfullyunderstandstheimportance of the case for India. However, the SG said the UK government has refused to Vijay Mallya give moredetails,sayingthatit was judicial in nature. “Wearetrying ourbest.Status remains the same. From political executive level to administrative level the matteris being looked into repeatedly at the highest level,” Mehta said, adding that the issue was raised with the UK’s home secretary this month. Continued on Page 2 NPS as a tax-saving tool goes beyond Section 80C 60% NPS 3,000 MW ■ Target of the Special Feature 40% ■ Capacity under construction: Annuity income from 40% of final withdrawal is taxed at a lower rate due to less income after retirement, thus bringing NPS close to the ‘EEE’ label of tax exempt at all three stages ■ Personal Finance, P9 QuickPicks Govt to mobile mfg firms: Call only those China experts who are needed AS MOBILE manufacturing firms face shortage of Chinese engineers and technicians for setting up new units to qualify for the production-linked incentive (PLI) scheme, due to delay in visa processing, the government has advised them to call only the set of people who are absolutely required to build assembly lines in the new handset manufacturing units, reports Kiran Rathee in New Delhi. Several companies have written to the Ministry of Electronics and Information Technology (MeitY) to help them secure visas for Chinese engineers. PAGE 4 WFH norms may soon apply to manufacturing sector too THE GOVERNMENT seems open to the idea of extending the work-from-home (WFH) facility to the manufacturing sector as well, but a final decision will be taken after assessing stakeholders’ suggestions, reports Surya Sarathi Ray in New Delhi. The move is part of setting standard for service conditions and employees’ conduct in a manufacturing establishment. “Let the comments come,” labour secretary Apurva Chandra said when asked whether the government will pay heed to suggestions that some activity under the manufacturing sector should also be given flexibility to work from home. PAGE 2 Kolkata