OPINION, P6 ECONOMY, P2 SURJIT S BHALLA Budget FY22 lays the foundation for future growth with reforms INTERNATIONAL, P8 S SUBRAMANIAN FM-SPEAK CONTENT PAYMENT LAW Though bond yields will harden, RBI did well to give banks some more time to fix their bond portfolio ‘Transparency, tax stability key guiding principles of Budget’ Google opens paid-for Australia news platform NEW DELHI, SATURDAY, FEBRUARY 6, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 293, 26 PAGES, `10.00 (PATNA `8.00, RAIPUR `9.00) 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: 50,731.63 ▲ 117.34 NIFTY: 14,924.25 ▲ 28.60 NIKKEI 225: 28,779.19 ▲ 437.24 HANG SENG: 29,288.68 ▲ 175.18 `/$: 72.93 ▲ 0.03 `/€: 87.35 ▲ 0.13 BRENT: $59.48 ▲ $0.64 GOLD: `46,882 ▼ `381 IN THE NEWS SC turns down plea against new WhatsApp policy THE SUPREME Court on Friday refused to entertain a plea which had sought a direction to instant messaging platform WhatsApp to roll back its new privacy policy on grounds that it is allegedly violative of laws and can impact the country's security, reports PTI. Brookfield India REITIPO subscribed 8 times on last day THE INITIAL public offering of Brookfield India Real Estate Investment Trust (REIT) got subscribed eight times on the final day of subscription on Friday, reports PTI. It received bids for 60,59,44,400 units against 7,62,78,200 units on offer. 4G mobile internet services being restored in J&K HIGH-SPEED mobile internet services are being restored in the entire Union Territory of Jammu and Kashmir, exactly 18 months after it was suspended in August 2019 when the Centre abrogated special status of the erstwhile state, reports PTI. MONETARY POLICY RBI keeps rates on hold, promises ample liquidity Bond yields trend up as GDP rises & borrowings surge FE BUREAU New Delhi, February 5 DESPITE WORRIES ON inflation, Reserve Bank of India (RBI) on Friday opted to leave policy rates unchanged even as it promised an accommodative stance for rates and, critically, liquidity. “The RBI stands committed to ensure the availability of ample liquidity in the system…As the Sensex 51,100 51,031.39 (Intra-day, Feb 5) 50,650 35,600 `/$ 72.78 Previous close : 50,614.29 Open Close 72.83 72.88 72.929 72.98 72.99 Open Previous close : 72.964 Close Farm laws not flawed, protesters misled: Tomar AGRICULTURE MINISTER Narendra Singh Tomar on Fridaysaidthegovernment’swillingness to amend the farm laws should not be construed as a realisation that the laws are flawed, and added that the ongoing overtwo-month-long agitation is not a nationwide one but limited to just one state (Punjab). In a speech in the Rajya Sabha, the content and tone of Relief on HTM bond portfolios now till March 31, 2023 (Intra-day, Feb 5) 6.11 72.93 CRR relief for banks on fresh MSME loans Previous close : 35,344.80 Open Close 6.14 73.03 On tap TLTRO for NBFCs for loans to stressed sectors 35,634.95 6.17 which signalled the government is in no mood to accede to the agitatingfarmNarendra ers’demandfor Singh Tomar repeal of the laws, Tomar said:“Wehavenotutteredasingle objectionable word against them (protesting farmers).We haveconsideredtheirviewswith respect and sensitivity.” Continued on Page 2 QuickPicks Declare SIAC arbitrator award akin to judicial order,Amazon urges HC AMAZON ON Friday urged the Delhi High Court to declare that the Emergency Arbitrator (EA) award by the Singapore International Arbitration Centre (SIAC) putting on hold the `24,713-crore deal between Future Retail (FRL) and Reliance Retail was akin to an order of court and enforceable like any other judicial direction, reports PTI. The submission was made during the hearing of FRL's plea challenging a single-judge interim order. PAGE 4 Three final offers received for PMC Bank resolution: RBI guv THREE INVESTORS have submitted their final offers for the resolution of crisis-ridden Punjab and Maharashtra Co-operative (PMC) Bank and their evaluation is underway, Reserve Bank of India (RBI) governor Shaktikanta Das said on Friday, reports PTI. Last month, the bank's administrator AK Dixit had said that three investors were given time till February 1, 2021, for submissions of their final offer. PAGE 10 6.071 Gilt sales thrown open for retail buyers 6.08 6.05 6.02 6.053 Previous close : 6.074 Open Edelweiss Govt Sec Pegs GDP growth at 10.5% in FY22 10-yr bond yield (%) (Intra-day, Feb 5) Inverted scale ● FARMERS’ STIR FE BUREAU New Delhi, February 5 35,200 Will ensure govt borrowing plan without disruption Says signs of recovery have strengthened 35,654.50 36,000 GILTS: One–year return (%) Cautions on price pressures; ups forecast to 5-5.2% for H1 (Intra-day, Feb 5) 36,400 50,800 50,500 ` Continued on Page 2 Bank Nifty COVID VACCINE Pfizer withdraws India application PRESS TRUST OF INDIA New Delhi, February 5 ■ Pfizer was the first pharma firm to seek emergency use authorisation from DCGI for its Covid-19 vaccine ■ An expert panel has recommended against granting approval to Pfizer at this stage ■ Pfizer said it would resubmit the approval request with additional information as it becomes available in near future the regulator may need, the company has decided to withdraw its application at this time,”acompanyspokesperson said in a statement. Continued on Page 2 India to get lion’s share of Covax shots despite tepid demand INDIA IS set to receive the most number of Covid-19 vaccine doses, 97.2 million shots, in the first tranche of distribution from the Covax initiative,despitethefactthat supplyinthecountryappears tooutstripdemandcurrently, reports Bloomberg. The Covaxinitiative,aimedatcreating equitable global access to vaccines especially for developingcountries,isplanning to distribute an initial 337.2 million doses starting laterthismonth,thefirstdeliveryofsome2billionshotsit’s ordered so far. ■ Page 4 APPLE CAR Tie-up reports send auto stocks up in S Korea,Japan SHOKO ODA & SOHEE KIM February 5 SPECULATION THATAPPLE is seeking a partner to develop its own electric vehicle swept throughSouthKoreaandJapan, where shares of major car companiesclimbedonreportsofdiscussionswiththeiPhonemaker. Kia Motors is talking to potential partners about a plan to assemble an Apple-designed car,the Wall Street Journal reported. Separately, the Nikkei newspapersaidApplewasindis- ■ Reports about Apple’s secretive project to design and sell its own electric car re-emerged in December 2020 ■ S Korea's Kia Motors is talking to potential partners about a plan to assemble anApple-designed car, WSJ reported ■ Japan's Nikkei said Apple was in talks with at least 6 automakers ■ The report fuelled gains, with Toyota Motor, Mitsubishi Motors and Nissan rising cussions with at least six automakers. Conjecture around Apple’s secretive project to design and sell its own car re-em- ergedinDecemberafterahiatus of several years,with Kia’s partowner Hyundai Motor mentioned as a potential partner. Axis Gilts Direct DSP Govt Sec HDFC Gilts Direct ICICI Pru Gilts Direct ABSL SBI Magnum Gilts Kotak Gilts 12.07 11.03 12.33 8.68 10.97 10.29 10.27 11.87 FE BUREAU New Delhi, February 5 RETAILINVESTORS CAN soon buy gilts, both in the primary and secondary markets, by opening accounts with Reserve Bank of India (RBI). Whilethemoveisreformist, experts noted the initial response may be lukewarm, given gilt funds offer reasonablygood returnswith indexation benefits if held for over three years. “Unless primary dealers offer liquidity or the trading volumes on the stock exchangesgoupmeaningfully, savers may not want to lock themselvesintotheproductfor long tenures,”theysaid. Continued on Page 2 Close PHARMA MAJOR PFIZER on Friday said it has decided to withdraw its application for emergency use authorisation (EUA) of its Covid-19 vaccine in India. Pfizerwasthefirstpharmaceutical firm to seek an emergency use authorisation from the Drugs Controller General ofIndia(DCGI)foritsCovid-19 vaccine in the country, after it secured such clearance in the UK and Bahrain. “In pursuance of the Emergency Use Authorisation of its Covid-19vaccine,Pfizerparticipated in the Subject Expert Committee meeting of the Drug Regulatory Authority of India on February 3. Based on the deliberations at the meeting and our understanding of additional information that RBI allows retail buyers to open gilt accounts Promise of ‘ample’ liquidity in the system 36,800 50,731.63 50,950 government’s debt manager and banker, the Reserve Bank will ensure the orderly completion of the market borrowing programme in a non-disruptive manner,” RBI governor Shaktikanta Das observed. The central bank expects the economy to grow at 10.5% in 2021-22. However, despite assurances from the central bank it would ensure the government’s large borrowing plan of `12 lakh crore went through smoothly, the bond markets remained somewhat nervous with yields trending up. ● ASSET CLASS Thekeyquestionishowserious Apple is about taking on Tesla and other EV makers,and whetherithasdetermineditwill need a established manufacturertobeabletorolloutitsown product.TheCupertino,California-based company is said to have a small team of engineers developing drive systems, as wellasdesigners,butwithdevelopment work at an early stage, anyrolloutprobablywon’thappen for anotherfiveyears. Continued on Page 2 WHITE GOODS PLI scheme to be launched on Apr 1 FE BUREAU New Delhi, February 5 THE GOVERNMENTWILL roll out on April 1 a proposed production-linked incentive (PLI) scheme for white goods, under which eligible investors in airconditionersandLEDlightswill be granted incentives worth `6,238 crore overfiveyears. The expenditure finance committeelastweekclearedthe proposal of the department for promotion of industry and internaltrade(DPIIT).Itwillnow beplacedbeforetheCabinetfor final clearance.Potential investorswillhaveatleastsixmonths after the scheme’s launch to apply for it and submit plans, DPIIT secretary Guruprasad Mohapatra said on Friday. Under the scheme, eligible investors are now proposed to getincentivesof4-6%onincremental sales (to be calculated over the base year of 2019-20) ofgoodsmanufacturedinIndia fora period of fiveyears. COST & BENEFIT 4-6% Incentives on incremental sales over base year of FY20 `6,238 cr Total PLI outlay for ACs, LED lights over 5 years `1,68,000 cr Expected incremental output in 5 years `64,400 cr Likely exports in 5 years `11,300 cr Enhanced direct tax mop-up over 5 years `38,000 cr Additional GST mop-up over 5 years Continued on Page 2 Delhi govt cuts circle rates by 20% THE DELHI government on Fridayreducedthecirclerates of residential, commercial andindustrialpropertiesinall areas by20%,reports PTI. The decision was taken during a cabinet meeting chaired by chief minister Arvind Kejriwal. The circle rates have been reduced by flat 20% across all categories of colonies and areas till September 30, 2021, a city government official said.