OPINION, P6 ECONOMY, P2 DINESH KANABAR G7 floor tax rate good, but a global tax regime a tough challenge INTERNATIONAL, P8 EDITORIAL AMID COMPLAINTS TOUGH STAND Centre ending liberalised vaccination policy is good, but priority-supply formula must not punish states FM asks Infosys to fix tech glitches on new I-T e-filing portal US sets up 'strike force' to go after China on trade NEW DELHI, WEDNESDAY, JUNE 9, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 85, 18 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: 52,275.57 ▼ 52.94 NIFTY: 15,740.10 ▼ 11.55 NIKKEI 225: 28,963.56 ▼ 55.68 HANG SENG: 28,781.38 ▼ 5.90 `/$: 72.89 ▼ 0.08 `/€: 88.74 ▼ 0.20 BRENT: $71.41 ▼ $0.08 GOLD: `48,857 ▼ `233 THE WORLD Bank on Tuesday projected India's economy to grow at 8.3% in 2021 and 7.5% in 2022, even as its recovery is being hampered by an unprecedented second wave of the Covid-19, the largest outbreak in the world since the beginning of the deadly pandemic, reports PTI. "India's recovery is being hampered by the largest outbreak of any country since the beginning of the pandemic," WB said. Preserve CCTV footage of note ban period: RBI RBI ON Tuesday asked banks to preserve the CCTV recordings of their branches and currency chests from November 8, 2016, to December 30, 2016, till further orders with a view to assisting the enforcement agencies to take actions against persons involved in illegal activities during the demonetisation period, reports PTI. Hiring outlook to be stable in Sept quarter: Survey HIRING MOMENTUM is expected to remain stable in the September quarter even as a large section of employers is unsure when regular hiring will resume, a survey has found, reports fe Bureau in Mumbai. The survey of over 1,300 employers, undertaken by ManpowerGroup India, found 46% did not know when they were likely to resume regular hiring. GREATER CLARITY New rules forvaccine rollout; e-vouchers to help poor 63 Moons, FD holders to challenge NCLT order States to be allotted doses on basis of vaccination progress, population & burden FE BUREAU Mumbai, June 8 PRESS TRUST OF INDIA New Delhi, June 8 USE OFNON-TRANSFERABLE electronicvouchersapprovedby RBIwillbeencouragedtoenable people to financially support Covid-19 inoculation of economically weaker sections at privatecentres,accordingtothe revised guidelinesissued bythe Centre onTuesday. While the Co-WIN platform provides every citizen the facilityofconvenientlypre-booking vaccination appointments, all government and private vaccination centres will also provide on-site registration facility, availablebothforindividualsas wellasgroupsofindividuals,for whichadetailedprocedureisto be finalised and published by states/UTs,the‘Revised Guidelines for implementation of NationalCovidVaccinationPro- THE CENTRE will require to spend an additional `1 lakh crore to distribute free foodgrain to 80 crore people under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) till November 4 (Diwali) this fiscal, reports Prasanta Sahu in New Delhi.This apart, Monday’s 46000 Jan 2021 BSE SENSEX Jun 2021 gram’ stated.According to the guidelines,whichwillcomeinto effect from June 21,doses provided free of cost by the Centre will be allocated to states/UTs based on criteria such as population, disease burden and progress ofvaccination. Continued on Page 2 announcement by the PM to take over vaccine procurement responsibility from state governments and provide the prophylactics free of costtothoseintheagegroup of 18-44 years will cost the exchequer an extra `5,00010,000croreovertherespective BE. ■ Report on Page 2 Govt places fresh order for 44 cr vaccines with SII, Bharat Biotech GEETA NAIR Pune, June 8 THE GOVERNMENT ON Tuesday placed fresh orders for procuring 44 crore Covid-19 vaccinesfollowingthechangein the national vaccination policy announcedbythePrimeMinister on Monday,VK Paul, member,health,NitiAayog said. The fresh orders and the advance payment released to vaccine maker Biological E for 30 crore doses would take the total vaccine doses secured by the government to 76 crore Covid-19 vaccines,Paul said. These orders are to be supplied between August and $3-BILLION IPO As markets rise,it’s time to rebalance your portfolio 52200 People crowd a fish market in Secunderabad near Hyderabad on Tuesday Free grains: Govt to spend extra `1L cr Special Features 54000 ● DHFL RESOLUTION Rebalance your portfolio regularly in-sync with market movements to minimise losses and manage risk.Try to move from loss-making and underperforming asset classes to assets with better prospects ■ Personal Finance, P7 Smart solution for solving the plastic waste problem Hi-Tech International’s plant-based bio-polymer, Dr Bio, can be used to replace single-use and multi-use plastic products such as bottles, straws, cups, polybags and more ■ eFE, P7 QuickPicks Privatisation plans: Two PSBs readying hefty VRS package TWO STATE-OWNED banks being picked up for privatisation by the government are likely to come out with an attractive voluntary retirement scheme (VRS) to get rid of the extra flab, sources said, reports PTI. Finance minister Nirmala Sitharaman, while unveiling Budget 2021-22 on February 1, had announced that the government proposed to take up the privatisation of two public sector banks (PSBs) and one general insurance company. An attractive VRS will make them lean and fit for takeover by the private sector entities that are keen to enter the banking space, the sources said. PAGE 11 Flipkart-Ace Turtle JV to launch Toys“R”Us, Babies“R”Us in India FLIPKART GROUP’S wholesale entity in India and omni-channel enablement platform Ace Turtle announced on Tuesday that a joint venture company set up by them has secured licensing rights for Toys“R”Us and Babies“R”Us in India through a strategic arrangement with WHP Global, the controlling shareholder of Toys“R”Us, reports fe Bureau in New Delhi. The arrangement will make the brand’s products available to consumers online through sellers in India. Over the last few years, the selection of products in the toys and games category on Flipkart has grown enormously, the company said. PAGE 4 Continued on Page 2 SARITHA RAI June 8 ■ Paytm is seeking to raise about $3 bn at a valuation of around $25-30 bn other relevant considerations, in accordance with applicable law, and has received an inprinciple approval from the board of directors of the Company in this regard,” Amit Khera, One97’s secretary, said in the notice to employees and shareholders. Continued on Page 2 Continued on Page 2 ■ The offer for sale, or OFS, will allow employees to sell their shares as part of the IPO ■ Paytm’s board has in principle approved the IPO plans ■ The draft red herring prospectus is likely to be ready by July first week Target range HIRING ■ Foxconn and Wistron have hired 7,500 RISHI RAJ New Delhi, June 8 workers each after August 2020 ■ Their vendors have together hired 5,000 workers APPLE HAS SCALED up its ecosystem in India in terms of manufacturing on the back of the government’s `40,000crore production-linked incentive scheme for smartphones.Two of the company’s contract manufacturers Foxconn and Wistron, which earlier had negligible presence in the country apart from relocating units from China and Taiwan, have crossed their year one (FY21) investment target of `250 crore each and have hired aggressivelydespite Covid-led disruptions. Figures accessed by FE show that the two Apple contract manufacturers have hired 7,500workers each after August 2020,when the smartphone PLI became operational. It is estimated that the vendors supplying inputs to these two companies, like Sunwoda, Foxlink, Salcomp and others, have also hired approximately 5,000 addi- ■ Third Apple contract manufacturer Pegatron to start production this year, plans to hire around 6,000 workers ■ By FY22 end, all these units have committed to hire 23,000 employees each INVESTMENT & SALES ■ Foxconn & Wistron have met Year 1 (FY21) investment target of `250 crore each ■ They failed to meet Year 1 sales target of `4,000 crore each due to Covid disruptions ■ They have urged govt to declare FY21 as zero year and extend PLI scheme by a year tional workforce to support the manufacturing of the two contract manufacturer firms. Continued on Page 2 FE BUREAU Over the last couple of weeks, the NIBRI has risen by about 9.5 pp from the bottom, and is currently around 30 pp below pre-pandemic levels. With the infections falling, traffic congestion has started picking up and railway passenger daily revenues have also risen. Nomura India Business Resumption Index (NIBRI) 100 84.4 90 79.8 80 Franklin Templeton to move SAT against Sebi order FRANKLIN TEMPLETON ASSETManagement(India)on Tuesday said it strongly disagrees with the findings of Sebi’s order in the case of winding of six debt schemes in 2020 and has decided to challenge the direction in Securities Appellate Tribunal (SAT). Sebi, on Monday, barred Franklin from launching any newdebt scheme fortwoyears and imposed a penalty of `5 crore for violating regulatory norms in the case of winding upofsixdebtschemesin2020. Also, it has been asked to refund investment management and advisoryfees of over `512 crore (includinginterest) collectedwithrespecttothesix debt schemes. Foxconn and Wistron step up hiring; Pegatron set to follow Economy on the mend Continued on Page 2 PRESS TRUST OF INDIA New Delhi, June 8 Apple vendors hire 20,000 in 7 months Recovery tracker ● TWO-YEAR BAN Paytm invites staff to sell their shares PAYTM IS ASKING employees to decidewhethertheywant to sell shares in the digital payments platform’s planned initial public offering, taking another step toward what could be the country’s largest stock market debut ever. The start-up, formally called One97 Communications,sent the“offerforsale”to its staff on Monday as it preparestofilefortheIPO,according to documents reviewed by Bloomberg News. Paytm’s board has approved the offering plans in principle and is finalising the draft red herring prospectus, which could be filedassoonasthefirstweekof July, according to a person familiarwith the matter. One97 Communications “is proposing to undertake an initial public offering of its equity shares (“Equity Shares”), subject to market conditions, regulatory, corporate and other approvals, and December with 25 crore Covishield vaccines from Serum Institute of India (SII) and 19 crore vaccine doses of Covaxin from Bharat Biotech (BB). Advance payments of 30% have been released to SII and BB.The price of the Biological E vaccinewillbeannouncedsoon. Thefreshorderisinaddition totheordersfor53.6croredoses alreadyplacedforJuneandJuly, Paul said. More orders, he said, will be placed, and while the time frame forvaccine supplies has been decided, the exact schedule for vaccine delivery is beingworked out. THOUGH THE NATIONAL CompanyLawTribunal (NCLT) has approved the resolution plan of Piramal Capital and Housing Finance (PCHFL) for Dewan Housing Finance (DHFL),some stakeholders are preparing to move higher courts to challenge the order. Financial services firm 63 Moons Technologies on Tuesdaysaid it is going to challenge NCLT’s approval of the DHFL resolution plan. The firm wants the creditors of DHFLto receive the money, instead of the buyer (PCHFL), in case recovery happens in the alleged fraudulent transactions by former promoters. Similarly, fixed deposit (FD) holders of DHFL are planning to approach higher courts against the NCLT order as they want their full money back. “63 Moons believes that the current resolution plan is contraryto lawand against the interest of all DHFL’s creditors including NCD holders,”it said in a release issued on Tuesday. The company holds over `200 crore non-convertible debentures (NCD) of DHFL. PLI SCHEME 70 60 67.9 95.9 94.9 84.4 69.5 62.9 69.7 58.1 50 40 Mar 1 Mar 22 Apr 12 May 3 May 24 Jun 14 July 5 July 26 Aug 16 Sept 6 Sep 27 Oct 18 Nov 8 Nov 29 Dec 20 Jan 10 Jan 31 Feb 21 Mar 14 Apr 4 Apr 25 May 16 June 6 IN THE NEWS India to grow at 8.3% in 2021, says World Bank ` ` Source: Nomura Global Economics RENAULT-NISSAN CASE HC orders TN govt to set uniform Covid norms for all carmakers SAJAN C KUMAR Chennai, June 8 THE MADRAS HIGH Court on Tuesday directed the Tamil Nadugovernment’sdirectorate of industrial safety (DIS) to deputeanofficialteamtodraw up a uniform set of production guidelines for all manufacturers in the state to follow. Thecourtnotedthatreasons would need to be assigned if there was any departure from the uniform guidelines prescribed by the official team. It also said till the uniform guidelinesareformulated,thecurrent What the Madras HC said: We are committed to complying with the also make visits directives of Madras HC, to the units working with the of other autogovernment stakeholders makers in the and coordinating with the vicinity and union to reach an issue uniform amicable and mutuallyset of norms to be followed agreeable resolution for all. ■ Senior industry ■ They should safety officials should visit Renault-Nissan manufacturing facility in state at all plants arrangementatRenault-Nissan plant needs to be followed and thatthecompanymanagement cannot tweak them. The next hearingforthedisputebetween —NISSAN SPOKESPERSON the management at RenaultNissanandtheworkershasbeen fixed forJune 14. Continued on Page 2 GIVE & TAKE Big tech supports global tax, but wants digital services levies axed DIANE BARTZ Washington, June 8 USTECH GIANTS could benefit from the agreement of the Group of Seven rich countries’ agreement to create a global minimum 15% corporate tax rate if the final deal also scraps increasingly popular digital services taxes, according to industry lobbyists. The deal,reached on Saturday, was designed to reduce companies’ incentives to shift profits to low-tax off- shore havens and could bring hundreds of billions of dollars into government coffers. The statement on the US Treasury Department website touting the deal also discusses the “removal of all Digital Services Taxes, and other relevant similar measures,on all companies”. Facebook was quick to praise the deal,andAlphabet’s Google followed suit:“We stronglysupport the work being done to ILLUSTRATION: ROHNIT PHORE update international tax rules. We hope countries continue towork together to ensure a balanced and durable agreement will be finalised soon,” said spokesman Jose Castaneda. The industry wants levies like France’s 3% tax on certain online revenues removed. In 2019, France applied a 3% levy on digital services revenue earned in France by companies with revenues of more than €25 million there and €750 million worldwide. It suspended collection in early 2020 while negotiations were underway on international tax rules. Levied on revenue rather than profit, the taxes have become an increasinglypopular way for countries to balance their budgets, said Matthew Schruers, president of the Computer and Communications Industry Association. CCIA members include Facebook, Google and Twitter. He noted that the communique over the weekend set expectations that digital services taxes will be repealed. “Companies are supportive of these global tax talks and the minimum tax is the price of tax certainty.” Continued on Page 2
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