OPINION, P6 ECONOMY, P2 M GOVINDA RAO Covid-19 vaccine should be taxpayerfunded and free for all INTERNATIONAL, P8 EDITORIAL FM-SPEAK FUTURE CEO Even industry captains are calling for a lockdown, the government can plan to avoid mistakes of the first ‘Developed countries need to share tech, no room for vaccine nationalism’ Buffett says Greg Abel is his likely successor at Berkshire Hathaway MUMBAI, TUESDAY, MAY 4, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. LXI NO. 104, 12 PAGES, `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: 48,718.52 ▼ 63.84 NIFTY: 14,634.15 ▲ 3.05 NIKKEI 225: 28,812.63 ▼ 241.34 HANG SENG: 28,357.54 ▼ 367.34 `/$: 73.93 ▲ 0.15 `/€: 89.11 ▲ 0.49 BRENT: $66.64 ▼ $0.12 GOLD: `47,135 ▲ `398 IN THE NEWS RBI imposes `3-cr penalty on ICICI Bank A PENALTY of `3 crore has been imposed on ICICI Bank for contravention of certain directions, the Reserve Bank of India (RBI) said on Monday, reports PTI. It, however, added the action is based on the deficiencies in regulatory compliance. No IGST on import of Covid relief material till Jun 30 THE GOVERNMENT on Monday exempted Integrated GST (IGST) till June 30 on import of Covid relief material received as a donation, a move that will speed up customs clearances for such imports, including those by charitable organisations, reports PTI. PLI: Govt invites EoIs by June 17 for food processing ISSUING DETAILED operational scheme guidelines for its PLI scheme, the food processing industries ministry on Monday invited EoIs by June 17 so that it can take off at the earliest, reports fe Bureau in New Delhi. Special Feature Skin in the Game AMC ` 20% MF ` Investors money Skin-in-thegame rule COVID-19 Pfizer seeks speedy nod for vaccine supply Company donates medicines worth $70 m for Covid patients in India FE BUREAU Pune, May 3 PFIZER CHAIRMAN AND CEO Albert Bourla on Monday said the company was in discussions with the Indian government to expedite the approval of the Pfizer-BioNTechvaccine for use in India. He said the application had been submitted months ago. “Pfizer is aware that access tovaccines is critical to ending this pandemic.Unfortunately, ourvaccine is not registered in India,”Bourla said. Bourla also announced Pfizerwasrushingshipmentsof its medicines valued at more than $70 million which have been identified by the Indian government as part of its Covid treatment protocol and includes steroid medication to reduce inflammation, anti-coagulants to prevent blood clotting and antibiotics to treat secondary bacterial infections. Pfizer had in April offered a ‘not-for-profit’ price for its vaccine for the Indian government’s immunisation programme. TheIndiangovernmenthas permitted the emergency use approval of the imported vaccines in Indiawhich have been granted emergency approval forrestricted use byregulators in the US,the EU,the UK,Japan and WHO. Expressing concern about The markets regulator’s skin-in-the-game rule is a necessary step given the larger investing ecosystem which includes investors as major stakeholders ■ Personal Finance, P7 PTI Manufacturing sector activity was largely flat in April as rates of growth for new orders and output eased to eight-month lows amid the worsening Covid crisis, a monthly survey said on Monday. The seasonally adjusted IHS Markit India Manufacturing PMI was at 55.5 in April against March's 55.4. 50 Manufacturing PMI 51.8 49.3 55.5 54.6 Mar ‘21 40 30 Services PMI 20 10 0 ■ Pfizer in April offered a 'not-for-profit' price for its vaccine to the Indian government ■ According to Pfizer, its vaccine's effectiveness is at least 97% against symptomatic Covid cases and 94% in asymptomatic cases Pfizer CEO Albert Bourla the critical Covid-19 situation in India with the highest rates of infection and hospitalisation and the need the treat those who are suffering in hospitals, Bourla said the medicines were being rushed from Pfizer’s distribution centres in the US, Europe and Asia over the next 90 days. The Pfizer chairman further said they would be working with the government and NGO partners to take these medicines, that are being donated by the company, to be provided free of charge to public hospitals across the country. Continued on Page 2 THE HEALTH MINISTRYonMondaysaid 100% advance of `1,732.50 crore was released to Serum Institute of India (SII) on April 28 for 11 crore doses of CovishieldvaccineduringMay,JuneandJuly, reportsPTI.Theamount,whichafterTDS was `1,699.50 crore,was received bySII onApril 28 itself,it said. New orders grow slowest in 8 months 60 medicines worth $70 million to India from its distribution centres in the US, Europe andAsia A LONG BATTLE (Clockwise from above) People above 18 years of age queue up at a vaccination centre in Bhubaneswar on Monday; family members of Covid patients wait to refill their oxygen cylinders in Kanpur; a policeman asks people to leave after a centre in Mumbai ran out of vaccine stock. Serum promises 11-cr doses to state govt, pvt hospitals FE BUREAU Pune, May 3 VACCINE MAKER Serum Institute of India on Monday committed to supply 11 crore Covid-19 vaccine doses to state governments and private hospitals in the next couple of months. This is in addition to the 11 crore vaccines SII CEO Adar Poonawalla dosestobesuppliedtothegovernment of India. Adar Poonawalla, CEO, SII, said the companyhad received total orders of 26 crore doses ofwhichSIIhadsuppliedmore than 15 crore doses. Poonawalla furthersaid it had received a 100% advance of `1,732.50 crore from the government for thenexttrancheof11crore doses to be supplied in the next few months. ■ Full report on Page 4 Full advance paid to vaccine makers for doses in May-July, says govt Manufacturing PMI 70 ■ Pfizer is sending March 2020 Note: Reading below 50 suggests contraction and above it indicates expansion April 2021 Source: IHS Markit QuickPicks Kotak Mahindra Bank profit jumps 33% to `1,682 crore KOTAK MAHINDRA Bank on Monday reported a 33% year-on-year (y-o-y) jump in its net profit to `1,682 crore on higher net interest income (NII), reports fe Bureau in Mumbai. The bank was able to register a growth in the bottomline despite a 181% q-o-q and 13% y-o-y jump in the provisions to `1,179 crore. Operating profit rose 25% y-o-y to `3,407 crore. PAGE 9 Jio’s strong Q4 subscriber net adds positive surprise: Analysts RELIANCE JIO'S strong subscriber net adds of 15.4 million in Q4FY21 have thrown up a positive surprise after the slowdown seen over the previous quarters and implies a strong uptick in February and March, alongside role of new JioPhone offer, many analysts said, reports PTI. ICICI Securities, however, flagged "multiple misses on the revenue front". PAGE 4 As on date,against the last order of 10 crore doses forsupplies of Covishieldvaccine,8.744croredoseshavebeendelivered tillMay3,theministrysaid,adding,media reports alleging that the Centre has not placed any fresh order for Covid-19 vaccinesare“incorrectandnotbasedonfacts”. Additionally, 100% advance of `787.50 crore (after TDS `772.50 crore) wasreleasedonApril28toBharatBiotech for five crore Covaxin doses during May, JuneandJuly.Theamountwasreceivedby them on April 28.As on date against the lastorderoftwocroredosesforsuppliesof Covaxinvaccine,0.8813croredoseshave beendeliveredtillMay3,theministrysaid. SECOND WAVE ● TENURE TALK Key luxury markets see drop in rentals FE BUREAU New Delhi, May 3 THE SECOND,AND amorevirulent surge in Covid-19 infections, has adversely impacted rentals across India’s toniest shopping destinations, with retail hubs like Khan Market in Delhi and Kala Ghoda in Mumbai amongtheworst impacted. The retail sector has already been badly hurt by the lockdowns and restrictions on mobilityacross states. “WithCovidwreakinghavoc inthecountry,averagemonthly rentals across key high-street markets in top cities witnessed some corrections,” Anarock ,which tracks the real estate space, said. It observed India’s most expensive shopping hub — Khan Market — witnessed averagemonthlyrentalsdecline by as much as 8-17% in Q1 2021 against Q1 2020. Similarly, high-street marketsofKalaGhoda,BandraLinking Road and Fort in Mumbai also saw retail rentals decline Top high-street markets Q1 2020 Q1 2021 Avg monthly rentals (p sq ft/`) Delhi - Khan Market 1,200 1,000-1,100 Mumbai - Bandra Linking Road 800-1,000 750-900 Kolkata - Park Street 250-280 250-300 Pune - JM Road 300-350 275-300 Hyderabad - Gachibowli 100-120 115-125 KOTAK MAHINDRA BANK’S MD and CEO Uday Kotak on Monday said he would be with the bank at least till his term ends,reportsfeBureauinMumbai.Onhissuccessionplanning, Kotak said the bank’s boardwill act in a mannerwhich is appropriate and responsible. The comments from Kotak come after the Reserve Bank of India (RBI)’s guidelines which saytheMDandCEOofaprivate bank cannot have a tenure of more than 15 years. RBI had earlierapprovedthereappointment of Uday Kotak as MD & CEO of Kotak Mahindra Bank for3years in December2020. ■ Report on Page 9 ASHOK LEYLAND, a Hinduja group flagship, on Monday said it has curtailed production at its manufacturingplantsdue to dipindemandwithsecond wave of Covid-19 sweepingacrossthecountry,reports PTI. The company has carefully studied the demand situation, and efforts are being made to match the demand on the one hand, while being cognisant of the disruptions in the supply situation, Ashok Leylandsaidinaregulatoryfiling.“The demand outlook for all our products is expected to be affected temporarily. Accordingly, theoperationsofourplants havebeenscaleddownand are expected to work for 715 days in May,” it said. ■ Report on P4 PM’s APPROVAL Medical students to join virus fight PRESS TRUST OF INDIA New Delhi, April 3 SEEKING TO AUGMENT human resources deployed in fighting Covid-19, Prime Minister Narendra Modi has approved a slew of measures, including postponing the NEET-PG for at least four monthstomakealargenumber ofqualifieddoctorsavailablefor pandemic duty and pressing into service medical interns. All such professionals who complete 100 days of dutywill be given priority in the forthcoming regular government recruitmentandalsohonoured with the Prime Minister’s DistinguishedCovidNationalService Samman, the PMO said in a statement on Monday. It said the services of final yearMBBSstudentscanalsobe ■ All medical professionals who complete 100 days of Covid duty to be given priority in forthcoming regular government recruitment ■ Services of final-year MBBS students can be utilised for providing services like teleconsultation and monitoring of mild Covid cases ■ B Sc or GNM qualified nurses may be utilised in full-time Covid nursing duties under the supervision of senior doctors and nurses utilised for providing services liketeleconsultationandmonitoringofmildCovidcasesafter due orientation under the faculty’s supervision. Continued on Page 2 LOCKDOWN WOES Covid curbs push unemployment rate to four-month high of 8% SURYA SARATHI RAY New Delhi, May 3 COVID-INDUCED LOCKDOWNS and restrictions on mobility have pushed India’s unemployment rate to a fourmonth high of 7.97% in April compared with 6.5% in March,6.89% in Februaryand 6.52% in January this year, data compiled by Centre for Monitoring Indian Economy (CMIE) showed. The spike in the unemployment rate was seen both in urbanandruralareas.Whilethe unemployment rate in urban areaswas at 9.78%,the highest ineightmonths,inruralareas,it Monthly unemployment rate All-India Urban 8.09 6.52 5.81 January Rural (%, 2021) 6.99 6.89 6.85 February 6.5 7.27 6.15 March 9.78 7.97 7.13 April Source: CMIE was 7.13%,a four-month high. CMIE’s MD and CEO MaheshVyasattributedtherise in the unemployment rate to the lack of growth in jobs.Vyas said the lack of growth in jobs has led to a double whammy of fallinglabourparticipationrate (LPR)andrisingunemployment rate inApril 2021. Continued on Page 2 Bengaluru - Brigade Road 300 250-275 0 400 800 1,200 Source: Anarock Research anywhere between 5% and 10% during the same period. Continued on Page 2 Mumbai home sales hit RESIDENTIAL PROPERTY sales in Mumbai have been impactedbythesecondwave of the coronavirus infection, reports fe Bureau in Mumbai. The city recorded upwards of 10,000 registrations in April but 93% of these related to properties Will be MD and CEO at least till Dec 2023: Kotak Ashok Leyland cuts production across units transacted between December 2020 and March 2021 for which the applicable stamp duties were paid during the lower rate window. Only 7% of these registrations related to newresidential sales concluded inApril. ■ Report on Page 4 YAHOO! SOLD Verizon to sell media biz to Apollo for $5 bn EVA MATHEWS May 3 VERIZON COMMUNICATIONS IS getting rid of its media businesses that include iconic brands Yahoo and AOL for $5 billion, ending an expensive and unsuccessful run in the media and advertising world. Despite spending more than a decade and billions of dollars building a stable of internet brands,the NewYorkbased telecom company has struggled to make headway in ■ Verizon to get Verizon bought Yahoo's internet properties for about $4.25 bn in cash, preferred interests of$750 m and retain a 10% stake in Verizon Media $4.48 bn in 2017 ■ Its media unit includes brands like Yahoo, AOL,TechCrunch, Makers, Ryot and Flurry a highly competitive internet advertising space dominated by Facebook Inc and Google. Having written $4.6 billion offthevalueofthebusinessesin It acquired email service AOL for $4.4 bn in 2015 2018,Verizonwillgetjust$4.25 billion in cash from private equityfirmApolloGlobal,along withpreferredinterestsof$750 million and a 10% stake in the unit - about half of what it had paid forthe businesses. The move concludes a steady drip of deals which saw Verizon sell blogging platform Tumblr in 2019 for an undisclosed sum and news website HuffPost to BuzzFeed lastyear. The unit, which was previouslynamedOathandrecently renamed Verizon Media, will now be called Yahoo when the deal closes around the second halfof2021andcontinuetobe helmed byGuru Gowrappan. Continued on Page 2
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