OPINION, P6 COMPANIES, P4 MOHAMED A EL-ERIAN Nations now need to focus on strong and inclusive growth NATION, P17 EDITORIAL SHARE BUYBACK BENGAL POLLS RBI does well to commit its balance sheet to further monetary policy, the risk is one worth taking Vedanta Resources’ sweetened open offer gets 57.5% bids EC sends notice to Mamata for allegedly violating model code NEW DELHI, THURSDAY, APRIL 8, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 32, 20 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: 49,661.76 ▲ 460.37 NIFTY: 14,819.05 ▲ 135.55 NIKKEI 225: 29,730.79 ▲ 34.16 HANG SENG: 28,674.80 ▼ 263.94 `/$: 74.56 ▼ 1.13 `/€: 88.59 ▼ 1.85 BRENT: $63.31 ▲ $0.57 GOLD: `45,895 ▲ `704 IN THE NEWS Pradhan, Kerry discuss strategic energy tie-up OIL MINISTER DHARMENDRA Pradhan on Wednesday discussed efforts to revamp strategic energy partnership between India and the US with the visiting US Presidential special envoy for climate John Kerry, reports PTI. Pradhan tweeted the discussions focused "on collaborating on technology and finance to further develop mutually beneficial low-carbon pathways in fast-growing India's energy market." Future-RIL deal: Amazon moves SC against HC order AMAZON HAS MOVED the Supreme Court against the Delhi High Court’s division bench’s March 22 order that lifted stay given by the single judge bench on the FutureReliance deal, reports fe Bureau in New Delhi. 60% of allocated tax cases settled in a year: Mody AFTER THE FACELESS assessment scheme was rolled out about a year ago, I-T has settled about 1.15 lakh assessment orders or 58% of the cases allocated, CBDT chairman PC Mody said, reports Prasanta Sahu in New Delhi. Special Feature OnePlus 9 Pro & 9: Perfect choice in the top-end segment The two new phones from the OnePlus 9 Series —Onelus 9 Pro and OnePlus 9—are super-slick, beautiful to look at with good overall running. Super-fast wired and wireless charging is an added bonus ■ Gadgets, P9 QuickPicks IT spending in India to reach $93bn in 2021: Gartner IT SPENDING in India is projected to total $93 billion in 2021, an increase of 7.3% from 2020, according to research firm Gartner, reports PTI. The growth in India will be lower than the global average, as worldwide IT spending is projected to total $4.1 trillion in 2021, clocking an increase of 8.4% from 2020, Gartner said. The IT spending is expected to further grow to $98.5 billion in 2022. PAGE 4 Groww joins unicorn club with latest funding ONLINE INVESTMENT platform Groww on Wednesday became the latest start-up to join the unicorn club after it raised a fresh $83 million in funding led by Tiger Global at a valuation of over $1 billion, reports fe Bureau in New Delhi. The investment which is part of the company’s Series D financing round also saw participation from existing investors Sequoia Capital India, Ribbit Capital, YC Continuity and Propel Venture Partner. PAGE 4 PLI SCHEME White goods, solar modules get `11k-cr aid FE BUREAU New Delhi, April 7 THE CABINETONWednesday approved production-linked incentive (PLI) schemes for white goods and solar modules, which would together cost the government `10,738 crore over five years. Underthe scheme forwhite goods, eligible investors in air conditioners, LED lights and such components will be granted a total incentive of `6,238 crore. The scheme for solar modules promises benefits of `4,500 crore. Investors in white goods will get incentives of 4-6% on WHITE GOODS 4-6% Incentives on incremental sales over base year ofFY20 incremental sales (likely to be calculated overthe baseyearof 2019-20) of products manufactured in India. Commerce and industry ministerPiyush Goyal said the value addition for the AC industry is estimated to rise from the current 20-25% to 75% after the implementation of the scheme; in LED lights, it will jump to 70-75% from 40%. Similarly, solar module manufacturers firms will be incentivised according to the efficiency and indigenous component of the panels. Continued on Page 2 SOLAR MODULES `6,238cr `4,500 cr Total PLI outlay forACs, LED lights over 5 years Total PLI outlay over 5 years Expected incremental output in 5 yrs Estimated capacity expansion `64,400 cr `11,300 cr `38,000 cr Likely Enhanced exports in 5 direct tax years mop-up 30,000 Extra GST mop-up in 5 years Expected direct jobs and 1,20,000 indirect ones `17,200 cr Likely investments in solar PV manufacturing QUERIES AT WTO A KEY EXPORT tax refund scheme, Agriculture Infrastructure and Development Cess (AIDC), subsidy on crop loans, import duty on cotton and ban on onion exports are among a raft of India’s policy interventions that have come under a heightened glare of variousWorldTradeOrganization (WTO) members, especially the US. Seeking “an update on the operational status and guidelines” of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, Washington wants New Delhi to “provide an explanation of this measure, including what specific duties and taxes are eligible for refund for agricultural products such as rice”. “If operational, please list what agricultural products are eligible under this measure,” it says. The RoDTEP scheme has, from January 1, replaced the Merchandise Exports from India Scheme (MEIS), which ‘Don’t attach assets at the drop of a hat’ SC raps taxman for high-handed enforcement, ‘blatant misuse’ FE BUREAU New Delhi, April 7 EVEN AS THE government is showcasingtherecentmonths’ surge in goods and services tax (GST) collections as proof of effectiveanti-evasionsteps,the SupremeCourt(SC)onWednesday came down heavily on the GST authorities for highhandedenforcementoftherelevant law and ‘blatant misuse’ of the provisions concerning attachmentoftaxpayers’assets. AnSCBenchcomprisingjustices DY Chandrachud and MR Shah noted that “Parliament had aimed to give the GST as a citizen-friendly tax structure”, but termed provisional attach- SC SAYS Attachment provisions under GSTlaw being misused by tax dept Taxman cannot see all businesses as being fraudulent and start attachment Tax officers’ accountability is a must, says apex court ■ Need for a balance between protecting government revenue and letting businesses operate ment as a“draconian, preemptivestrike”.TheSClaterreserved its judgment in the case — Radha Krishna Industries vs State of Himachal Pradesh. Continued on Page 2 MARKETSREGULATORSEBI on Wednesday imposed a total penalty of `25 crore on Mukesh Ambani, Anil Ambani, other individuals and entities for non-compliance with takeover norms in a RIL case dating back to 2000,reports PTI. Others penalised include Nita Ambani and Tina Ambani.RIL’spromotersand Persons Acting in Concert failedtodisclosetheacquisition of more than a 5% stake in the company way back in 2000, Sebi said in its 85-page order. ■ Page 17 RBI directs lenders to refund compound interest to borrowers FE BUREAU Mumbai, April 7 RBI to buy bonds in India’s version of QE Asserts support to nascent recovery by staying ‘accommodative’ QUESTIONS GALORE US How longwill the new agri cess be levied and how will this fund be utilised? Australia What led to a 10% duty on cotton imports? THE RESERVE BANK of India (RBI) on Wednesday stayed pat on rates,shrugging aside inflationary pressures,and asserted it would support the nascent recovery by staying ‘accommodative’ for as long as was needed. RBI governor Shaktikanta Das said the‘accommodative' stance would continue as long as necessary to ‘sustain growth on a durable basis and continuetomitigatetheimpact of Covid on the economy’. RBI backed up its reassurancelaunchingaG-secAcquisition Programme in it committed to purchasing a specified quantum of bonds in the secondary market.This is in addiExtension ofTLTRO on Tap Scheme till Sept 30 ■ Fresh support of `50,000 cr toAIFIs for new lending in 2021-22 Oyo moves NCLAT against insolvency order FE BUREAU New Delhi, April 7 was successfullychallenged by the US at the WTO on ground of being inconsistent with global trade norms. India has appealed against the ruling of the WTO’s dispute body and a verdict is yet to come. OYO ON WEDNESDAY said that it has challenged in the National Company Law Appellate Tribunal the order of the Ahmedabad bench of the NationalCompanyLawTribunal to initiate corporate insolvency process against its subsidiary, Oyo Hotels and Homes (OHHPL),over a dispute of `16 lakh. The order for initiating insolvency was passed on April 1, on an application filed by an operational creditor over nonpayment of dues amounting to `16 lakh.The petition was filed byone RakeshYadav. “ThecreditorsofOyoHotels and Homes are hereby called upon to submit their claims before April 15 to the interim resolution professional,” an April 3 orderof the interim resolution professional, Keyur Jagdishbhai Shah,stated. Continued on Page 2 Continued on Page 2 ■ Explain RoDTEPscheme, including levies on farm items eligible for refunds ■ How is the interest subsidy scheme for crop loans implemented? Japan Has the impact ofan onion export ban on importing nation's food security been considered? COVID-19 Maharashtra says vaccine doses to last only three more days PRESS TRUST OF INDIA Mumbai, April 7 State of the matter MAHARASHTRA HEALTH MINISTER Rajesh Tope on Wednesday said the state has 14 lakh doses of Covid vaccine which would last only three days, and many inoculation centres were being closed due to the shortage of the vaccine. Tope said people coming to such centres for taking jabs were being sent back as there wasno supplyofvaccinedoses. “Fourteen lakh doses are availablenowwhichwouldlastthree days.We need 40 lakh vaccine doses every week.We can then administersix lakh doses every day in a week.The doses we are gettingarenotenough,”hesaid. 1.5 crore additional doses ofvaccines lakh doses ■ It received 1.06 of Covid-19 crore doses vaccine ■ Ofwhich 88 lakh remaining doses have been used;wastage stood at 3% State has 14 ■ State demands Continued on Page 2 Vardhan says allegations of vaccine shortage 'utterly baseless', accuses Maha of covering 'failures', Page 2 `/$ 73.2 73.5 Intra-day, April 7 Inverted scale 73.556 Previous close: 73.425 73.8 74.1 74.4 FE BUREAU New Delhi, April 7 THE RESERVE BANK of India (RBI)onWednesdayclearedthe air on who stood to bear the cost of the court-mandated waiver of compound interest forallloansduringthemoratorium period, asking all lenders to refund this component to their borrowers. Lenders will have to immediately put in place board-approved policies torefundoradjustthe‘interest oninterest’chargedtoborrowers during the moratorium period — March 1, 2020, to August 31,2020. The Supreme Court had on March 23 dismissed the distinction earlier made by the government between small andlargeborrowersinthecontext of refunding compound interest accrued during the moratorium period. Analysts at Icra have estimated that the fresh refund exercise could be to the tune of an additional `7,500 crore for loans of over `2 crore. Continued on Page 2 NOT YIELDING ● UNPAID DUES Explain RoDTEP, agri cess, US asks India BANIKINKAR PATTANAYAK New Delhi, April 7 ● MORATORIUM Sebi slaps `25-cr fine on Ambani brothers 10,000 mw `1,68,000 cr GST DISPUTES Vaccination at pvt, public workplaces from April 11 THE MINISTRYOF health and family welfare on Wednesday permitted vaccination at both government and private workplaces fromApril 11, reports fe Bureau in Pune.All workplaces that havemorethan100beneficiaries would be tagged with existing Covid-19 vaccinationcentresforthe vaccinationdrive.Companies in Pune have already started immunising their employees. ■ Page 2 New Delhi 74.7 74.556 Open Close 10-year bond yield (%) Intra-day, April 7 6.25 6.20 6.114 6.15 6.081 6.10 6.05 6.00 5.95 Previous close: 6.122 Open Close tion to other liquidity-infusing tools like OMOs and Operation Twists and the RBI’s explicitly dovish tone reassured the bond markets; bonds rallied smartly with benchmark yields tumbling byabout ten basis points. Continued on Page 2 Enhancement of the limit of maximum balance to `2 lakh per payment bank customer Extension of PSL classification for lending by banks to NBFCs for ‘onlending’ to specific sectors till Sept 30