OPINION, P6 COMPANIES, P4 EDITORIAL Ultra-loose monetary policies have deepened inequity HIGH LIQUIDITY IN VIOLATION Expect policy tightening only from Sept, RBI must aid growth, govt borrowing at affordable rates S PRASAD, A BHOWMIK & S BALDAWA INTERNATIONAL, P8 RIL now has strong balance sheet to support growth, says Mukesh Ambani SEC letters claim Tesla failed to oversee Elon Musk's tweets NEW DELHI, THURSDAY, JUNE 3, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 80, 14 PAGES, `8.00 (PATNA `8.00, RAIPUR `8.00) 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: 51,849.48 ▼ 85.40 NIFTY: 15,576.20 ▲ 1.35 NIKKEI 225: 28,946.14 ▲ 131.80 HANG SENG: 29,297.62 ▼ 170.38 `/$: 73.09 ▼ 0.19 `/€: 89.02 ▲ 0.16 BRENT: $71.01 ▲ $0.76 GOLD: `49,049 ▼ `124 IN THE NEWS Govt advances ethanol-blending target to 2023 THE GOVERNMENT HAS brought forward the target date for achieving 20% ethanol-blending with petrol by two years to 2023 to help reduce India's dependence on costly oil imports, according to official notification, reports PTI. Two IAS officers among 10 in fray for ONGC top job SENIOR BUREAUCRATS AVINASH Joshi and Niraj Verma are among the 10 candidates who are in the race to become CMD of India's largest oil and gas producer, ONGC, reports PTI. MRPL director-finance Pomila Jaspal and ONGC director for technology and field services Om Prakash Singh are the other prominent names in fray. ‘Rising crude oil prices may hit OMCs' margins’ CONTENT CLAUSE Google challenges new IT rules in HC Says it’s not a social intermediary, appeals against HC single-judge order to remove content FE BUREAU New Delhi, June 2 GOOGLE LLC ON Wednesday moved the division bench of the Delhi High Court against the order of its single judge directingittoremovemorphed pictures of awoman on certain pornographic websites within 24hoursofreceivingtheorder. Theorderstatedthatfailureon the part of Google to remove theobjectionablecontentfrom all the sites world-wide would lead the company to lose the WHAT’S THE CASE ABOUT Awoman's pictures taken from Facebook and Instagramwere morphed and posted on certain porn sites Failure to do so would lead to Google losing immunity as an intermediary and criminal action can be initiated against its officers Google has contended that it is not a social intermediary but an aggregator, so the IT law in this regard does not apply to it The division bench has not stayed the order It has said that it can remove the objectionable content from India but the samewill not be possible globally immunitywhichitenjoysasan intermediary under Section 79(1) of the IT Act and and its officers would be liable for action as mandated by Section 85 of the ITAct. Initsappeal,Googlehascon- tendedthatitwaserroneouson the part of the single judge to refer to its search engine as a social intermediary as it was an aggregator. Continued on Page 11 TCPLwell-positioned for accelerated growth: Chandrasekaran THE SURGE IN international crude oil price could have a mixed impact on oil PSUs, and an improvement in the refining margins is expected due to increasing demand, but marketing margins may be compressed, Icra said Wednesday, reports PTI. TATA CONSUMER PRODUCTS (TCPL) has completedtheintegrationofitsIndiafoodand beveragesbusinessandisnowwell-positioned for accelerated growth by putting in place the right building blocks for the future, its chairman N Chandrasekaran said,reports PTI. The Tata group firm has enhanced its product portfolio through“targeted acquisi- tions”asitaspirestobeaformidableplayerin the FMCG category, said Chandrasekaran, whoisalsothechairmanofTataSons.Besides, it has stepped up the pace of innovation across markets in line with consumer trends suchashealthandwellnessandconvenience, he said in his message to shareholders in the latest annual report ofTCPL. ■ Page 4 Govt support The Centre’s budgetary capital expenditure as a share of GDP rose to a 13-year high at 2.2% in FY21, the year which saw the economy contract by 3% in nominal term. Capex was up 26.5% in FY21, but against the budget size, it was just 12.1% versus 14.4% in FY17. Thanks to release of subsidy arrears and assorted Covid reliefs, revenue spend (88% of total expenditure) jumped to 15.6% of GDP in FY21 from 11.6% in FY20. Franklin returns `14,572 crore to investors FRANKLIN TEMPLETON Mutual Fund (MF) on Wednesday said its six shuttered debt schemes distributed `14,572 crore to investors till Mayend, reports PTI. Further, cash to the tune of `2,642 crore was available for distribution as of May 31, Franklin Templeton MF said in a statement. The fund house shut its six debt mutual fund schemes in April 2020 citing redemption pressures and lack of liquidity in the bond market. PAGE 9 Mercedes Benz to now sell cars in India directly LUXURY CARMAKER Mercedes-Benz India on Wednesday announced a transition from its retail business structure in India to a model where the centralised stock will be owned by the company, thereby eliminating operational and capital risks for dealers, reports fe Bureau in Pune. The centralised ordering and fulfilment will also now be done by MercedesBenz India and it will also be offering uniform pricing for its cars across the country. The new model to be rolled out from Q42021. PAGE 4 2.5 2.0 1.5 Capex (LHS) Revenue expenditure (RHS) Total expenditure (RHS) 17.8 20 (` lakh cr) 17 13 15.6 1.0 R R ONLY69% OFthepersonswho were ‘offered’ work under the rural employment guarantee scheme (MGNREGS) turned up for it till June 1 in the current financial year against around 85% in the last two years,reflecting a rapid spread of Covid-19 in rural areas and probably a hesitancy on the part of the people to be exposed to the virus. Unlike in April 2020,which saw complete nationwide lockdown and a decline in demand for MGNREGS work, the demand for work under the scheme that provides subsistence wages, remained high in May2021,whichalsowitnessed a nearpan-India lockdown. While 4.41 crore persons demandedworkinMayagainst 3.59 crore in March, only 22.9 crore person days were created in May compared to 25.6 crore in March.Curiously,even as the demandforworkishigh,people 14 1.08 11 11.2 FY20 8 0.5 0 SURYA SARATHI RAY New Delhi, June 2 R R 1.8 1.9 1.5 1.6 2.2 1.6 FY16 FY17 FY18 FY19 FY20 FY21 5.25 5 FY21 HOME RUN Urban Company is valued at $2.1 bn post fundraise ASMITA DEY New Delhi, June 2 HOME SERVICES PROVIDER, Urban Company, which has raised $255 million in funding fromaclutchofinvestorsledby ProsusVentures,Dragoneerand Wellington Management with participation from Vy Capital, Tiger Global and Steadview, on Wednesday said it will now expanditsservicestoadditional 70cities,thuscoveringatotalof 100 cities in the country. With the latest round of funding, the company has beenvaluedat $2.1 billion.The current round of funding includes a primary capital infusion of $188 million and a secondary sale of nearly $67 ■ Co eyeing expansion in India, aims to be present in top International locations like Indonesia, Malaysia, Hong Kong and Taiwan on the radar 100 cities FE BUREAU New Delhi, June 2 TATA POWER SOLAR said on Wednesday it has received a letterofawardforanengineering, procurement and construction (EPC) contract to build 210 mega-watt (MW) solarprojects forTPC.The total order value of the projects is about `686 crore and the commissioning date forNTPC is set for November 2022. Withthiscontractaddition, the order pipeline of Tata Power Solar stands at about 2,800 MW with an approximate value of `13,000 crore, the company said. TataPower’ssolarEPCbusiness has shown significant growth in the recent years, with earnings before interest, taxes, depreciation and amortisation (Ebitda) for this business segment increasing more than twice annually to `185 crore at the end of FY21. Analysts expect Ebitda from the solar EPC segment to rise at 16%compoundannualgrowth rate over FY21-23 to `440 crore.Thecompanyhadreceved new solar EPC orders worth `2,294 crore in Q4FY21itself. Continued on Page 2 COVID TRACKER SII may make Sputnik V in India Seeks DCGI nod, submits application for test analysis and examination GEETA NAIR Pune, June 2 INDIA'S COVID-19 VACCINATION drive could get a booster shot ifSerumInstituteof India (SII) is able to get regulatory clearancestomaketheRussian Sputnik V vaccine locally. This would be the third vaccine from the SII stable after AstraZeneca’s Covishield and Novovax’s Covovax. SII has sought permission from the Drug ControllerGeneral of India (DCGI) and has submitted an application, (C-10), on Wednesday for test analysis and examination. Once these permissions are received, an emergency use authorisation (EUA) would be required. Currently,DrReddy’s Labo- Factory workers on their way to work after the unlock process begins in Gurgaon on Wednesday ratories has a tie-up with the Russian Direct Investment Fund (RDIF) to make the Sputnik V Covid vaccine in India. Dr Reddy’s received the EUA for Sputnik V in India on April 13 and also permission from DCGItoimport the Russian vaccine.The first lot of the vaccines has been imported with three million units arriving in the country on Tuesday. Continued on Page 11 Only one of three strains found in India now a ‘variant of concern’, says WHO THE WHO HAS said only B.1.617.2, one of the three strains of the B.1.617 Covid variant first detected in India, is a “variant of concern” now and noted that lower rates of transmission have been observed for the other two lineages, reports PTI.The B.1.617variantwas first detected in India and wasdividedinthreelineages — B.1.617.1, B.1.617.2 and B.1.617.3. Persons offered MG-NREGS jobs against those who took up work (%) 2019-20 84.7 2020-21 PRESS TRUST OF INDIA New Delhi, June 2 RETAIL MALL DEVELOPER Phoenix Mills and Singapore’s sovereignwealthfundGIChave partnered to establish a $733million (approx `5,362-crore) investment platform forretail- led mixed-use assets in India. “GIC and Phoenix Mills to establisharetail-ledmixed-use investment platform in India withaninitialportfolioof$733 million,” the company said in a regulatoryfilingonWednesday. GICwillacquireasignificant minority stake in the portfolio 68.6 Person days generated Persons demanded work (RHS) 70 60 50 40 2.5 30 20 10 0 Jan 2020 (in cr) 4.14 May 2021 7 6 5 4 3 2 1 0 are unable to grab the work offered.Ortherecouldbea'communication gap' between the officers at the block/gram panchayat level and the workers,so that“workoffers”aremuchless than reported officially. Continued on Page 2 EU to force multinational companies to report revenue in each country Expects India business to turn profitable in the near term EUOFFICIALSSTRUCkadeal to crack down on international companies’ efforts to dodge taxes,as a coordinated push by governments to take abiggersliceofcorporaterevenue gathers pace, reports ■ Firming up plans to go public in the next 18-24 months million by select angels and early investors. Continued on Page 2 Bloomberg. Negotiators agreed on a package forcing companieswith a total revenue exceeding$917millioninthe lasttwoconsecutivefiscalsto disclosedatafromoperations in eachmemberstate. TURNAROUND? Exports in May soar 67%, cross pre-pandemic level FE BUREAU New Delhi, June 2 MERCHANDISE EXPORTS JUMPED over 67% year-onyear in May, aided by a conducive base.However,at $33.2 billion, the exports were almost 8% higher than even the May 2019 (pre-pandemic) level, showed the preliminary datareleasedbythe commerce ministry on Wednesday. With this, exports have exceeded the pre-Covid (same 195.7167.1 (% change, y-o-y, 2021) Exports Imports 60.3 6.2 Jan 2 0.7 67.4 68.5 53.7 7 Feb Mar *Preliminary estimates monthsin2019)levelforthree months in a row, suggesting the trade recovery appears to Apr May* Source: Commerce ministry be taking roots despite the second Covid wave. Of course, export growth FE BUREAU New Delhi, June 2 TERMING THE “PAID Covid19 vaccination policy” for the 18-44 age group as “arbitrary and irrational”, the Supreme Court has asked the Centre to place its entire data on record giving details of the purchase historyofallCovid-19vaccines within two weeks. The apex court also asked the central government to clarifyhow`35,000 crore earmarked for Covid vaccine procurement in the Union Budget was being spent. Continued on Page 11 Phoenix, GIC form $733-m investment platform 84.2 2021-22 (till Jun 1) Terming vaccine policy 'arbitrary', SC asks Centre for outlay details ● RETAIL STORY Curious gap between ‘offers’ & works seen Food subsidy (As % of GDP) Tata Power wins 210-MW solar EPC contract from NTPC RURAL JOBS SCHEME FE BUREAU Capex grew as economy shrank QuickPicks Delhi HC's single judge bench has directed Google to remove them within 24 hours of receiving the order as mandated by the ITAct ● SUN RISE was low even before the pandemic – outbound shipments rose about 9% in 2018-19 but again shrank by 5% in 201920. So only a sustained uptick over the next 2-3 years would helprecapturethelostheights. India had set a target to raise its exports (both goods andservices)to$900billionby 2019-20; however, total exports in 2019-20 were just $527 billion. Continued on Page 2 New Delhi of retail-led mixed-use developments, located in the prime consumption centres of Mumbai and Pune, the company added.The transaction is subject to relevant regulatory approvals,the filing said. Continued on Page 2
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