OPINION, P6 MAHESH UPPAL NATION, P13 New Intermediary Rules miss the mark on many counts INTERNATIONAL, P8 SUNIL JAIN RESOLUTION SCHEME HARD PUSH Low/poor pace of testing & vaccinations contributed to Covid surge and, now, lockdowns will hit recovery IBBI chief says pre-pack is 'liquidation-remote mechanism' Biden confident that higher tax will not drive companies out of US NEW DELHI, WEDNESDAY, APRIL 7, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 31, 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: 49,201.39 ▲ 42.07 NIFTY: 14,683.50 ▲ 45.70 NIKKEI 225: 29,696.63 ▼ 392.62 HANG SENG: 28,938.74 ▲ 560.39 `/$: 73.43 ▼ 0.12 `/€: 86.74 ▼ 0.67 BRENT: $63.37 ▲ $1.22 GOLD: `45,191 ▲ `133 IN THE NEWS Reliance, other energy majors form hydrogen coalition LED BY RIL, many global energy and industrial players on Tuesday came together to form a new energy transition coalition, called the India H2 Alliance (IH2A), reports PTI. This will help commercialise hydrogen technologies in the coalition’s bid to build net-zero carbon energy pathways in the country. India to purchase one-third less oil from Saudi Arabia INDIAN REFINERS WILL buy less oil from Saudi Arabia next month as they snap up supplies outside of West Asia as part of a diversification drive amid weakening domestic fuel demand on the resurgence of Covid19, reports PTI. China’s ByteDance allowed to operate Indian bank a/cs THE BOMBAY HC on Tuesday permitted Chinese company ByteDance to operate its Indian bank accounts, that had been frozen by the Goods and Services Tax authorities over alleged tax evasion, after depositing a sum of `78.91 crore in a state-run bank, reports PTI. EASY ACCESS BSNL 4G tender: Now, global cos can bid too KIRAN RATHEE New Delhi, April 6 GLOBAL TELECOM GEAR makers,including Nokia,Ericsson and Samsung,can now bid for a part of BSNL’s upcoming 4G tender without any hindrance as the government has dropped a key clause. Sources saidfirmsinterestedintheproject need not deposit their source code for core and radio network in an escrow account aswas earlierrequired. ThoughmostIndianplayers whohavefirmedupplanstobid under a system integrator modelalsowantedtheclauseto beremoved,itopensthefieldfor global players also. Generally, global players do not want to deposit theirsource code in any escrow account as it is a proprietarytechnologyandtherefore, poses a business risk. Continued on Page 2 Localvendors under system integrator model tie-up forvarious technologies with global players Since source code is a proprietary technology, global firms do not deposit itwith any third party With the clause on depositing source & radio network in escrow account dropped,vendors can source technology easily How it helps globalvendors Theywere barred from bidding as preferencewas to be given to Indian players Later in a two-part tender theywere being allowed to bid for one part Nowwith the clause for depositing code, they can participate in both parts for radio network Bharti sells 7.50 MHz spectrum in 800 MHz band to Jio for `1,497 crore BHARTI AIRTEL ON Tuesday sold7.50MHzofspectrumin 800 MHz band spanning across three circles to Jio for `1,497 crore, reports fe Bureau in New Delhi. The transfer of spectrum from Bharti to Jio has been done Need `3,000 cr to boost vaccine capacity: Serum CEO Poonawalla looks to ramp up doses beyond 100 million/month FE BUREAU Pune, April 6 SERUM INSTITUTE OF India (SII)hassoughta`3,000-crore grant from the government to ramp up capacity of the Covishield Covid-19 vaccine beyond 100 million doses a month that it will reach by the end of May.Currently,Serum’s output is around 65-70 million doses a month. SII CEO Adar Poonawalla told CNBC- BOOSTER DOSE ■ Currently, ■ Serum may also look at other sources of funds – bank 65-70 m loans and if govt doses a month advances unable to give a grant ■ Poonawalla says money needed to replace the capex made Serum’s output is around TV18themoneywasneededto not just replace the capex made but also to divert existing capacity from other vaccine commitments. Continued on Page 2 Curfew from 10 pm to 5 am imposed in Delhi till April 30 IN VIEW OF rising Covid cases in Delhi, the Arvind Kejriwal government on Tuesday imposed seven hours of night curfew with immediate effect but exemptedpeopleofcertain professions from it,reports PTI.Thecurfewfrom10pm to 5 am will continue till April 30. People travelling during curfew hours for vaccination will require a soft/hard copy of an e-pass whichcanbeobtainedfrom www.delhi.gov.in.■ Page 2 Should you purchase an annuity insurance plan? One major advantage of annuities offered by life insurance companies is that there is no cap on investment. Also, it removes the risk of re-investment in a low interest rate regime ■ Personal Finance, P9 CAPITAL MARKETS REGULATOR Sebi chief Ajay Tyagi on Tuesday said the new framework to split the roles of chairman and managing director is not aimed at weakening the position of promoters,rather it is a move aimed at improving corporategovernancestructure oflistedcompanies.Thiswould also help in reducing excessive concentration of authority in a single individual, he said at a virtual event organised by industrychamberCIIoncorporate governance. In addition, separation of roles would provide a better and more balanced governance structure, he added. As of December 2020, around 53% of the top 500 listed entities were in compliance with the regulatory provision, he rising once again, especially in Brazil and India.Health officials blame more infectious variantsthatwerefirstdetectedintheUKand South Africa, along with public fatigue with lockdowns and other restrictions. ■ Page 8 under the spectrum trading guidelines. The deal makes sense for both as the spectrum sold byBhartiwas unutilisedandwasinsmallquantity as its 4G network in the circles are built primarily on 900 MHz. ■ Page 4 Giving beauty regimes a technology makeover Vedix is a customised Ayurveda beauty brand which uses artificial intelligence and analytics to design a personalised beauty regime. It is adding about 50,000 new customers every month ■ eFE, P9 QuickPicks Adani third Indian conglomerate to cross $100-bn market cap GAUTAM ADANI'S ports-to-energy conglomerate has become India's third group to cross $100 billion in market capitalisation with shares of four of its six listed companies soaring to an all-time high on Tuesday, reports PTI. The total market cap of Adani Group's six listed companies at the close of trading on Tuesday was `7.84 lakh crore or $106.8 billion. Adani Group is the third Indian conglomerate to cross the $100-billion market cap mark after Tata Group and RIL. PAGE 4 Seth new DEA secretary, Bajaj shifted to revenue department THE GOVERNMENT on Tuesday shifted Tarun Bajaj, secretary of the department of economic affairs (DEA), to the revenue department and appointed Karnataka-cadre civil servant Ajay Seth as the DEA secretary, as part of a bureaucratic shuffle, reports fe Bureau in New Delhi. Bajaj, who had worked at the PMO before his elevation as the DEA secretary in April last year, was also holding the additional charge of the revenue department since the superannuation ofAjay Bhushan Pandey in February. PAGE 2 Flipkart gets land from Haryana forAsia’s largest fulfilment centre THE HARYANA government has approved allotment of 140 acres to e-commerce major Flipkart for setting up its largest fulfilment centre in Asia, having a covered area of 3 million sq ft in Patli Hajipur in Gurugram district's Manesar, an official statement said, reports PTI. The land, belonging to Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC), has been allotted at a price of `3.22 crore per acre. PAGE 4 Stalin VOTING DAY Kushboo Sundar Pinarayi Vijayan Zerifa Wahid A high voter turnout was seen in Kerala, Puducherry and TN on Tuesday. While Assam polls ended with nearly 79% turnout, the trend of high turnout and violence continued in West Bengal 30 Sebi, in January 2020, deferred by two years to April 1, 2022, its directive for listed companies to split the roles added. The Sebi, in January 2020,deferred by two years to April 1, 2022, its directive for listed companies to split the roles of CMD amid demand from corporates. Continued on Page 2 FE BUREAU 20 ● VOX POPULI FIVE CANDIDATES, INCLUDING two women, were assaulted, while clashes between rival political groups erupted during the third phase of polling in West Bengal on Tuesday. However, despite the Kerry says India red hot investment opportunity for clean energy CALLING INDIAA“red hot investment opportunity” becauseofitseffortstohike theshareofrenewables,special US envoy for climate JohnKerrysaid“globalinvestmentinnewcleanenergy is set to exceed $10 trillion through mid-century, over six times the investments in dirtier options”, reports feBureau. ■ P2 violence,voterenthusiasmwas high with 77.68% of voters casting their ballots till 5 pm, twohoursbeforepollingended. Polls were conducted with strict adherence to Covid-19 protocols,officials said. Voting in 16 seats in South 24 Parganas district (part II), saw 76.68% votes being cast by 5 pm. While 77.93% votes were cast in seven seats in Howrah (part I) and 79.36% in eight in Hooghly (part I), they added. “Voter turnout of 77.68% was recorded till 5 pm in 31 seats,”an EC official said. 1.28 million fewer vehicles likely to be built this year due to global semiconductor shortage BofAe Real GVA, % y-o-y 10 High turnout in state elections PRESS TRUST OF INDIA Kolkata/ New Delhi, April 6 From a 6.4% y-o-y BofAe in FY21, lockdown and inadequate vaccination coverage poses a 300 bps risk to this forecast 0 -10 -20 -30 June 2012 June 2021 Continued on Page 2 ● PAYMENT METHOD ● VIVAD SE VISHWAS Deadlock over Punjab wheat buys Govt nets PRABHUDATTA MISHRA New Delhi, April 6 EVEN THOUGH OFFICIAL purchase of wheat from Punjab for the current rabi season is slated to start from April 10, the deadlock overthe means to transfer the amount — estimated at close to `26,000 crore — to farmers remained unresolved even on Tuesday. While Punjab,the hotbed of farmers’ agitation against the three contentious laws govern- ■ Punjab insists payments to farmers be madevia arhatiyas ■ Other states follow this system, Haryana being the latest to comply ■ Centrewants Punjab to shift to direct transfer offunds to farmers' bank accounts ing marketing of agricultural produce, insist that the payments be made through arhatiyas (commission agents) as has been the conventional practice in the state,the Centre ■ Athird ofofficial wheat procurement is from Punjab ■ Purchases from Punjab in seen at 13 MT wants Punjab,like other states, to shift to the new system of direct transfer of the funds to the farmers’bank accounts. 6 additional number of months the disruption of production could last for $37 billion in funding sought by US President Joe Biden for legislation to supercharge chip manufacturing in the US tor production to auto sector needs, the Alliance for Auto Innovation said in written responses to a governmentinitiated review. US President Joe Biden in February ordered several Federal agency actions to address the chip crisis and is also seeking $37 billion in funding for legislation tosupercharge chip manufacturing in the Us. Some funding should “be usedto buildnewcapacitythat will support the auto industry `54,000 cr, half of it from PSUs PRASANTA SAHU New Delhi, April 6 and mitigate the risks to the automotive supply chain evidenced by the current chip shortage”, the group's chief executive,JohnBozzella,wrote. The group said the US government could specify “a particularpercentage–thatisreasonablybased on the projected needs of the auto industry– be allocated for facilities that will supporttheproduction ofauto grade chips in some manner”. THE CENTRE’STAXresolution scheme ‘Vivad Se Vishwas’ has resolved nearly a third of all directtaxdisputesandhasnetted `54,005 crore in tax revenue, 51% of which are from thecentralPSUs,CentralBoard of Direct Taxes (CBDT) chairman PC Modytold FE. Although the expectations regarding the scheme was much higher — the governmenthadoriginallysetatarget to collect `2 lakh crore by the end of March 2020, but the Covid-19 pandemic upset the calculations — the government still flags the scheme as a success, citing that a 1998 scheme could only mop up `739 crorewith resolution ofa few thousand disputes and anotherone in 2016 managed to resolve just 8,600 cases involving a tax demand of `631 crore. Continued on Page 2 Continued on Page 2 Continued on Page 2 US auto industry seeks govt help over chip shortage A US AUTO industry group on Monday urged the government to help as it warned the global semiconductor shortagecouldresultin1.28 million fewer vehicles built this year and disrupt production for another six months. The US commerce department should dedicate a portion of funding in a proposed Bill to expand US semiconduc- As of December 2020, around 53% of top 500 listed entities were in compliance As the number of fresh cases has risen more than sixfold in the last month, more localized lockdowns such as the one in Maharashtra are likely. While a national lockdown looks unlikely, BofA Securities sees a 300bps downside risk to its 9% GVA estimate for FY22 in case of a national lockdown which may result if there is inadequate vaccination and a continuing surge in cases; a one month shutdown, it says, costs between 100 and 200 bps of GDP growth. GLOBAL CRISIS DAVID SHEPARDSON Washington, April 6 In addition, separation of roles would provide a better and more balanced governance structure Don’t shut down GDP Kamal Haasan FE BUREAU New Delhi, April 6 Continued on Page 2 New framework to also help in reducing excessive concentration of authority in a single individual Covid toll Valued at $2.2 billion, Cred is the new unicorn CREDIT CARD REPAYMENT platform,Cred on Tuesday said that it has closed a fresh $215million funding round led by new investor Falcon Edge Capital and existing backer Coatue Management.With this investment that values the company at $2.2 billion,Cred is the latest unicorn.Its post-money valuation stood at $806 million in January after it secured about $81 million in capital from a clutch of investors. Existing investors DST Global,RTPGlobal,TigerGlobal, Greenoaks Capital, Dragoneer Investment Group and Sofina also participated in the latest funding. New investor Insight Partnersgotaddedtothefirm’s cap table. In all, investors have infused over $400 million into the company. “...we’ve grown rapidly over the past 2.5 years, with 35% of premium credit card holders and processing 22%ofallcreditcardpayments in India per month.As the category continues to grow rapidly, our opportunity is to imagine new use-cases, empower Cred memberstousecreditresponsibly and reward them for good financial behaviour,” founder Kunal Shah said in an internal mailto employees. Tyagi: CMD split not aimed at weakening promoters’ position PRESS TRUST OF INDIA New Delhi, April 6 Global death toll crosses 3 million over resurgence of infections DEATHS WORLDWIDE CROSSED 3 million onTuesday,accordingtoaReuterstally,asthe latestglobalresurgenceofCovidinfectionsis challenging vaccination efforts across the globe,reportsReuters.Worldwidedeathsare CLEAN BREAK Sebi chief says the move will improve corporate governance structure of listed companies ● InCREDible Special Features Annuity insurance plan How it helps localvendors COVID-19