OPINION, P6 ECONOMY, P2 MADAN SABNAVIS UP saw corona cases rise in April,when it had panchayat polls INTERNATIONAL, P8 EDITORIAL VIRTUAL SUMMIT CALLING IT QUITS Sebi does well to link fund managers' pay to schemes' performance, but its prescription needs tweaking Modi, Johnson unveil roadmap for FTA, enhanced trade Bill and Melinda Gates to divorce; charitable foundation stays intact KOLKATA, WEDNESDAY, MAY 5, 2021 VOL. 30 NO. 157, 14 PAGES, `6.00 (NORTH EAST STATES & ANDAMAN `10.00) FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD 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: 48,253.51 ▼ 465.01 NIFTY: 14,496.50 ▼ 137.65 NIKKEI 225: 28,812.63 ▼ 241.34 HANG SENG: 28,557.14 ▲ 199.60 `/$: 73.86 ▲ 0.15 `/€: 88.69 ▲ 0.42 BRENT: $68.63 ▲ $1.07 GOLD: `47,076 ▼ `243 EXPRESS PHOTO: GANESH SHIRSEKAR IN THE NEWS PMGKAY: 28 states/UTs start lifting grains THE CENTRE on Tuesday said 28 states and Union Territories have started lifting additional foodgrain meant for free distribution to 80 crore beneficiaries for two months under the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), reports PTI. Steelmakers hike HRC, CRC prices by up to `4,500/tonne STEEL MILLS have raised prices by up to `4,500 per tonne from May 1, taking the benchmark hot rolled coil (HRC) price in the Mumbai market to a record high of nearly `68,000 per tonne, reports Surya Sarathi Ray in New Delhi. Goldman Sachs cuts India growth forecast to 11.1% GOLDMAN SACHS has lowered its estimate for India's economic growth to 11.1% in the fiscal to March 31, 2022, as a number of states announced lockdowns to check spread of coronavirus infections, reports PTI. Special Feature ` Education loan tips Apply for an education loan as per your current needs, future earning probability and collateral security availability. Early planning will help save time during the admission procedure ■ Personal Finance, P7 LEFT OUT Huawei and ZTE not part of 5G services trials (From left) An elderly woman gets vaccinated during a drive-in car vaccination facility started in Dadar, Mumbai, on Tuesday; a medic flashes the victory sign from the coach of a Covid care train, at a railway station in Jabalpur CONTEMPT WARNING HC pulls up Centre for not supplying oxygen to Delhi PRESS TRUST OF INDIA New Delhi, May 4 THE DELHI HIGH COURT on Tuesdaydirected the Centre to showcauseastowhycontempt not be initiated against it for failing to complywith orderon supply of oxygen to Delhi for treating Covid-19 patients. “You can put your head in sand like an ostrich, we will not,”the high court to the central government.It added that the Supreme Court has already directed, and now the high court is also saying that the Centre will have to supply 700 MT oxygen daily to Delhi right away bywhatever means. “You are part of the city and seeing the situation yourself. No, you don’t know. Are you living in ivory towers?” the bench said. A bench of Justices Vipin Sanghi and Rekha Palli also rejected the Centre’s submis- CRACKING DOWN "There is a Supreme Court order and now we are also saying you will have to supply 700 MT oxygen daily to Delhi right away by whatever means. We would not hear anything except compliance." "We had told you contempt is the last thing in our mind but it is certainly in our mind and don't drive us to that last point. We mean business now. Enough is enough." —DELHI HIGH COURT TO CENTRE sionthatDelhiwasnotentitled to 700 metric tonnes of medical oxygen in light of existing medical infrastructure. It said the Supreme Court’s April 30 detailed order directed the central government to provide 700 MT of oxygen per day to Delhi and not just 490 MT. “We had toldyou contempt isthelastthinginourmindbut it is certainly in our mind and don’tdriveustothatlastpoint. We mean business now. Enough is enough. Be clear on this. We are not going to take no for an answer. There is no way you won’t supply 700 MT,”it said. Continued on Page 2 Remdesivir production has been trebled, says Centre Ahmedabad stops vaccination of 45+ as it runs out of stock THE PRODUCTION of remdesivir has gone up nearly three times to 1.05 crore vials per month as the government works hard to enhancetheavailabilityoftheantiviraldrug in the country, minister of state for chemicals and fertilisers Mansukh Mandaviaya saidonTuesday,reportsPTI.Theproduction capacity of the drug has crossed 1.05 crore vials per month as on May 4. THE COVID vaccination for people above the ageof45wassuspendedatthecivic-runfacilities inAhmedabad onTuesdaydue to unavailabilityofvaccines,officials told PTI.According toareleaseissuedbytheAhmedabadMunicipal Corporation, the vaccination was also suspendedforfrontlineandhealthcareworkersat the urban health centres, community health centres and civic-run hospitals and halls. TIMEOUT? QuickPicks Banks’ lending spreads may have peaked, say analysts LENDING RATES fell in March from their February levels, but a simultaneous need to raise deposit rates may be causing spreads to peak out, reports fe Bureau in Mumbai. The marginal lending spread — the interest rate on new loans minus new deposits — for the banking system has come off peak levels and declined by 16 basis points (bps) in March 2021 over February 2021, according to data released by the Reserve Bank of India (RBI). PAGE 9 More data breaches in 2020 than in last 15 years: Canalys OVER THREE-FOURTHS of India’s adult population has had their data compromised since 2017, analyst firm, Canalys said in a report, reports Rishi Ranjan Kala in New Delhi. A majority of these breaches happened as India accelerated the pace of IT reforms, digitising various government records and the risk of such intrusions is only expected to grow. According to Trai, the world’s second-largest smartphone market had roughly 80 crore internet users by 2020 end. PAGE 3 Delhi govt to provide free ration to 72L for 2 months PRESS TRUST OF INDIA New Delhi, May 4 THE DELHI GOVERNMENT will provide free ration for two months to 72lakhrationcardholders andfinancialassistanceof `5,000 to auto-rickshaw and taxi drivers in the city to help them tide over the Covid-19crisis,chiefminister Arvind Kejriwal said onTuesday. However, the decision toprovidefreerationdoes not mean that the lockdown imposed in the city to break the chain of transmission will continue for two months, he said during an online briefing. The national capital is underlockdown till May 10 to check the rising number of Covid19 cases. Kejriwal said he is hopeful thatthe situation in Delhi will improve and lockdown will not be needed. ■ Report on Page 2 Trials to cut time gap between 5G spectrum auctions and the rollout, says telecom secretary Testing 5G technology Reliance Jio to do trials with Samsung, Nokia, Ericsson and also its own technology developed locally BSNL not doing 5G trials as of now KIRAN RATHEE New Delhi, May 4 THE DEPARTMENT OF Telecommunications (DoT) has given the go-ahead for5G trials in the country, though with somedelay.Asexpected,Huawei andZTEwillnotbeparticipating in the forthcoming trials since telecom operators had submitted multiple applications and the Chinese firms were not marked on the prioritylist. Both Bharti Airtel and Vodafone Ideawill conduct the trials with Ericsson and Nokia, whereas Reliance Jio will be doing so together with Ericsson, Nokia and Samsung. State-run MTNL will conduct the trials with C-DoT while BSNL does not intend to participate in this round. In addition, Reliance Jio will also be conducting trialsusing its own indigenous technology. Once the trials are completed,which is expected to be done over a period of six months, the government will move ahead with 5G auctions. Unlimited opportunities » 10 times » 3 times ■ Ultra low latency to enable greater connectivity ■ Immense potential in sectors like fast downloads than 4G greater efficiency of spectrum tele-medicine, agriculture, education, transport etc Currently, only the midband spectrum in 3300 MHz3600 MHz has been earmarked for 5G. But the auctions will include those for additional spectrum in millimetre wave band and sub 1 GHz band. A portion of this spectrum has been lying with space and defence departments and telecom operators have been demanding that more bands be opened for 5G technology.Atelcowill require around 100 MHz in the midband spectrum to offer panIndia 5G services but not WITH THE IPL (Indian Premier League) having been called off, withoutafirmresumptiondata, broadcaster Star India could be staring at significant losses. Industry experts believeunlessthetournament resumes later in the year — which is possible despite the hectic cricket calendar — Star might needtopayBCCIachunkofthe contracted `3,269 crore. Star has paid a staggering `16,347 crore to acquire the IPL broadcasting rights for a five-year period ending 2022. Continued on Page 2 FE BUREAU New Delhi, May 4 COMPUTER MAJOR DELL and contract manufacturers Foxconn,Wistron and Flextronics are among the 19 companies thathavefiledtheirapplications under the production-linked incentive (PLI) scheme for IT hardware,notified on March 3. The scheme,with an outlay of `7,350 crore over fouryears, willprovidefinancialincentives intherangeof4%to1%onthe net incremental sales over the base year (2019-20) for manufacturing laptops, tablets, all-in-one PCs and services. As per an official statement, thecompaniesthathaveapplied PRESS TRUST OF INDIA New Delhi, May 4 MARUTI SUZUKI INDIA, the country’s largest carmaker, expects some impact on its productioniflockdownsand curfews imposed acrossvarious states continue amid Maruti Suzuki chairman the secondwaveof Covid-19 RC Bhargava sweepingacrossthecountry. Theautomajor,whichhas cle segment,anticipates a hit around50%marketsharein onthemanufacturingactivithedomesticpassengervehi- ties as lockdowns would ■ IT hardware companies have proposed production worth over `1.35 lakh cr ■ Domestic firms have US PRESIDENT Joe Biden formally raised the nation’s cap on refugee admissions to 62,500 this year, weeks after facing bipartisan blowback for his delay in replacing the record-low ceiling set by former President Donald Trump. Refugee resettlement agencies havewaited forBiden to quadruple the number of refugees allowed into the US this year since February 12, It is important to take this action today to remove any lingering doubt in the minds of refugees around the world who have suffered so much, and who are anxiously waiting for their new lives to begin. — JOE BIDEN, US PRESIDENT ■ Work is being done to improve US capabilities to process refugees in order to accept as many of them as possible under the new cap ■ Travel preparations are being made for over 2,000 refugees excluded by Trump’s presidential determination on Oct 27, 2020 ■ More slots added for those from Africa,WestAsia and CentralAmerica;Trump curbs on resettlements from Somalia, Syria andYemen ended national interest”, indicating Biden intended to keep it. That brought sharp pushback for not at least taking the symbolic step of authorising more refugees to enter the US this year.The second-ranking Senate Democrat,Dick Durbin of Illinois, called that initial limit“unacceptable”andwithin hours the White House made a quick course correction. The administration vowed to increasethehistoricallylowcap by May 15 — but the White House said it probably would impact the functioning of its sales network. “There could be an impact if lockdowns continue because then sales outlets would remain closed,” MSI chairman RC Bhargava told PTI when asked if he expects a hit on the company’s production activities amid spike in the Covid-19 situation in the country. ■ Full report on Page 4 proposed production to the tune of over `25,000 cr under category IT hardware companies are Dell, ICT (Wistron), Flextronics, Rising Stars Hi-Tech (Foxconn) and Lava. 14 companies have filed applicationsunderthecategory domestic companies which include Dixon,Infopower (JVof not hit the 62,500 Biden had previouslyoutlined. In the end, Biden returned to that figure. Bidensaidhereceivedadditional information that led him to sign the emergency presidential determination setting the cap at 62,500. “It is important to take this action todayto remove anylingering doubt in the minds of refugeesaroundtheworldwho have suffered so much, and who are anxiously waiting for their newlives to begin,”Biden Apex court strikes down Bengal law regulating realty sector FE BUREAU New Delhi, May 4 ■ Companies that have applied under the scheme include Foxconn, Wistron, Dell, Lava, Dixon, Bhagwati (Micromax) Sahasra and MiTAC), Bhagwati (Micromax), Syrma, Orbic, Neolync, Optiemus, Netweb, VVDN, Smile Electronics, Panache Digilife, HLBS, RDP Workstations and Coconics. Continued on Page 2 Biden quadruples Trump refugee cap after delay backlash when a presidential proposal was submitted to Congress saying he planned to do so. But the presidential determination went unsigned until Monday. Biden said he first needed to expand the narrow eligibility criteria put in place by Trump that had kept out most refugees. He did that last month in an emergency determination.Butitalsostatedthat Trump’s cap of up to 15,000 refugeesthisyear“remainsjustified by humanitarian concerns and is otherwise in the Continued on Page 2 ● ‘UNCONSTITUTIONAL’ DOORS WIDE OPEN ASSOCIATED PRESS Washington, May 4 enough airwaves are currently availableto satisfythe needs of all operators. Telecom secretary Anshu PrakashtoldFEthesignificance ofthetrialsisthatitreducesthe timegapbetween5Gspectrum auctions and the rollout of 5G network.“Inthepast,trialshappened after the auction but we are gaining time by starting now,” he said. Prakash added that the trials will also enable operatorstochoosethevendors and type of equipment. Production may be hit if lockdowns continue: Maruti Suzuki Star may take a big PLI scheme for hardware attracts hit as IPL called off 19 firms; Foxconn, Dell apply Sandeep Goyal,chairman at MogaeMedia,toldFEhewasnot surewhetherthe`16,000crore bidprovidedforpartpaymentin casethetournamentwasatruncatedone.“Myunderstandingis thatthereisnosuchprovision and if the tournamentisatruncatedone and the remaining matchesarenotplayed, Star is liable to pay the full amount,” Goyal said. However, the agreement mayhavepencilledinanabrupt suspension of the tournament inwhichcasetheblowwouldbe softer, according to others familiarwith the tournament. MTNLwill do the trials with C-DoT Vodafone Idea will do the trials with Nokia and Ericsson BIG DRAW ASMITA DEY New Delhi, May 4 Bharti Airtel will do the trials with Nokia and Ericsson stated before signing it. Biden saidTrump’s cap“did not reflect America’s values as a nation that welcomes and supports refugees”. But he acknowledged the “sad truth” that the US would notmeetthe62,500capbythe end of the fiscal year in September, given the pandemic and limitations on the country’s resettlement capabilities — some of which his administration has attributed to the Trump administration’s policies to restrict immigration. STRIKING DOWN THE West Bengal Housing Industry Regulation Act 2017 (WBHIRA) as “unconstitutional”, the Supreme Court on Tuesday said it is in conflict with the Real Estate (Regulation and Development) Act, 2016 (RERA),a Central legislation implemented a year after its enactment across the country. A Bench led by Justice DY Chandrachud observed a state legislature cannot enact a law after Parliament has enacted a similar law on a subject. “Sections 88 and 89 of the RERA did not implicitly permit the states to create their own legislation creating a parallel regime alongside the RERA which would have not required presidential assent. Hence, it is clear that WB-HIRA did not have presidential assent and was repugnant to RERA under Article 254,”it ruled. Also, it noted that various provisions of the state enactment were directly in conflict with the Central enactment. Continued on Page 2 Kolkata
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