OPINION, P6 COMPANIES, P4 EDITORIAL Time to test CovishieldCovaxin mix for immune response against D variant NEW NORMAL BOOSTING PRODUCTION India must be part of more trade deals to boost exports, higher import duties a big hurdle K SRINATH REDDY ECONOMY, P2 Future of work will be hybrid, says Chandrasekaran Centre to auction 'major' oil, gas fields of ONGC & Oil India CHENNAI/KOCHI, FRIDAY, JUNE 11, 2021 WWW.FINANCIALEXPRESS.COM FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE READ TO LEAD VOLUME XLII NO. 340, 16 PAGES, `6.00 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: 52,300.47 ▲ 358.83 NIFTY: 15,737.75 ▲ 102.40 NIKKEI 225: 28,958.56 ▲ 97.76 HANG SENG: 28,738.88 ▼ 3.75 `/$: 73.06 ▼ 0.08 `/€: 88.88 ▲ 0.08 BRENT: $72.58 ▲ $0.36 GOLD: `48,634 ▼ `102 PM Modi to attend outreach sessions of G7 summit A man gets a dose of Covid-19 vaccine at a drive-in camp set up by the UP government in Greater Noida on Thursday sources,“if one company gets it, then all of them get it.” India has invited Pfizer, Moderna and Johnson & Johnson in April to sell their vaccines afterinfections rocketed. However, no deal has been signed. Continued on Page 2 GST Council to consider tax cuts for Covid products tomorrow THE GST Council will meet on Saturday to considerthe recommendations of a group of ministers (GOM) to reduce taxes on most Covid-19 medicines and materials to give relieftothepeople,agovernmentsourcesaid, reports fe Bureau in New Delhi. ■ Page 2 PRIME MINISTER Narendra Modi will participate virtually in the outreach sessions of the G7 summit on June 12 and 13, the ministry of external affairs (MEA) said on Thursday, reports PTI. Kerala, Bengal report negative vaccine wastage, Jharkhand tops KERALAAND West Bengal recorded negative wastage of Covid-19 vaccines in May,saving 1.10 lakh and 1.61 lakh doses respectively, while Jharkhand reported maximum wastage of 33.95%, according to government data,reports PTI. ■ Page 2 2W Source: Fada Research 3W « PV resumed production. During May,Maruti Suzuki observed a 16-day shutdown at its plants and around 80% of its showrooms TRAC CV across the country remained closed because of local lockdowns. Continued on Page 2 Continued on Page 2 RISING JOBLESSNESS ● HEALTHY GROWTH EPF sops for industry, workers Organic farm exports jump 51% in FY21 to be extended by 6 months SURYA SARATHI RAY New Delhi, June 10 THE GOVERNMENT IS likely to extend the provident fund subsidy scheme aimed at incentivising newrecruitment by businesses by six months from the current deadline of June 30,as it seeks to arrest the rise in unemployment rate,an official source said. If the scheme is extended,a large section of the industrial and commercial establishments and the relatively lowearningnewemployeesjoining them till the end of calendar year 2021 will be able to avail FE BUREAU New Delhi, June 10 Atmanirbhar Bharat Rojgar Yojana was first announced in Nov 2020, as part of the Atmanirbhar Bharat Package 3.0; Cabinet gave its approval on December 9 with outlay of `22,810 cr till end of 2022-23 ■ As on February 17, 2021, the scheme had 8.42 lakh beneficiarieswho were recruited since October 2020 in 38,320 Secondwave led to a spike in unemployment rate: it rose to 11.9% in May from 7.97% inApr, as per CMIE; it had peaked at 23.52% inApr 2020 amid full lockdown establishments the specified incentives fortwo years from the date of joining. The relatively low utilisationofthefundsearmarkedfor the scheme — less than a couple of hundred crores so far, against `22,810 crore approved by Cabinet for the period till 2022-23 — is also a reason for the extension. Continued on Page 12 Tata Digital to buy majority stake in online pharmacy 1MG TATA DIGITAL, a wholly-owned arm of Tata Sons,onThursdaysaiditwillacquireamajority stake in 1MG Technologies, an online healthcare marketplace, reports PTI. The company,however,didnotdisclosethefinancial details of the transaction. Just days after the company said it will invest $75 million in fitness-focused Curefit Healthcare,Tata Digital said its investment in 1MG is in line with TataGroup’svisionofcreatingadigitalecosystem which addresses the consumer needs across categories. ■ Report on Page 4 OVERSEAS DEMAND FOR India’s organic farm products shot up in the pandemic year and exports of such items surged 51% on year in FY21, beating Covid-induced hiccups in the supply chain. Outbound shipments of organic products hit $1,040 million last fiscal, compared with $689 million a year before,aidingariseintheoverall agricultural exports, commerce secretary Anup Wadhawan said on Thursday. Farm exports rose over 17% last fiscal to $41.25 billion when total merchandise shipments shrank by about 7% to almost $291 billion. Even in volume term, exports of organic products grew as much as 39% to 8,88,179 tonnes last fiscal, against 638,998 tonnes in FY20, suggesting robust growth in demand. The key organic products that were shipped out include Greener pastures (Exports in $ bn) FY20 Organic products Total farm items 0.7 FY21 1.04 35.16 41.25 Source: Ministry of commerce oil cake and meals, oil seeds, cereals, millets, spices and condiments, tea, medicinal plant products, dry fruits, sugar,pulses and coffee. Continued on Page 2 ■ New scheme for services exports soon: Commerce secretary, Page 2 VOLATILE GAINS $43-bn rise in Adani riches fraught with risks ANTO ANTONY June 10 A RALLY IN the stocks of companies controlled by industrialist Gautam Adani has added almost $43 billion to his wealth this year, catapulting him to the spot of the second-richest person inAsia.Some analysts saythe gains are fraught with risk. Adani’s networth of $76.7 billion got a boost from a 330% jump in Adani Total Gas, a 235% rise in his conglomerate’sflagshipAdaniEnterprises and a 263% increase in Adani Transmission this year.Adani group stocks, especially these three,“look extended”, Bloomberg Intelligence analysts Gaurav Patankar and Nitin Adani’s $76.7-bn networth got a boost from a 330% jump in AdaniTotal Gas, a 235% rise inAdani Enterprises and a 263% increase in Adani Transmission this year ■ Analysts point out only a few overseas funds hold a large chunk ofthe shares, effectively reducing the public float and leaving the stocks prone tovolatility Chanduka wrote in a June 10 note after analysing technical indicators. “Among the biggest foreign investors are a few Mauritius-based 17,534 -76.66 75,122 « -57.85 16,616 -63.7 39,417 « -89.86 85,733 -71.08 Total 18,22,566 -70.6 5,35,855 y-o-y (%) 2,36,157 « AUTO SALES FELL across categories in May and the outlook continues to remain muted. However, with the gradual easing of lockdown restrictions since the beginning of June, dealerships have started opening up across several states and districts. After observing maintenance shutdowns at their plants in May spanning from a week to a fortnight, manufacturers have also All-India vehicle registrations May 2019 May 2021 51,428 « FE BUREAU Chennai, June 10 5,215 RUPAM JAIN & NEHAARORA New Delhi, June 10 STATE BANK OF India (SBI) has identified bad loans worth `20,000 crore that it plans to transfer to the National Asset Reconstruction Company (NARCL), sources close to the development told FE. These non-performing assets (NPAs) include Essar Power Gujarat, Coastal Energy and Reliance Naval. In all,banks have identified 22 stressed accounts worth around `89,000 crore that theywant totransfertoNARCL in the first phase. Over time, lenders are expected to move loans worth nearly `2 lakh crore to the bad bank. In an email response to FE, SBI said, “It is a policy of the bank not to comment upon individual accounts and its treatment.” FEalsolearnedthattheoperationalguidelinesforNARCLare in the final stages,but thevalue atwhichtheassetswillbetransferred isyet to be decided. Local lockdowns keep retail auto sales in the slow lane 4,10,757 ANKUR MISHRA Mumbai, June 10 Govt expects delivery of Pfizer vaccines in August THE GOVERNMENT IS close to agreeing to grant foreign Covid-19 vaccine makers such as Pfizer protection against legal liability so that it can use their shots in an immunisation campaign that is facing acute shortages, three government sources told Reuters. “Indemnity will be granted,” said one of the SBI likely to transfer `20k-cr NPAs to NARCL MAY DOWNTURN 14,20,442 Foreign vaccine makers likely to get indemnity ● BAD DEBT « THE CoC of Jaypee Infratech (JIL) on Thursday cleared the revised resolution plans of state-run NBCC and the consortium led by Suraksha Realty, reports Rishi Ranjan Kala in New Delhi. Now, the panel will put both the bids to vote from next week. Sources said voting on the revised bids will commence on Monday (June 14) and will conclude on Wednesday (June 23). NBCC had submitted its revised bid on June 4, while Suraksha submitted it on June 7. “Both the revised resolution plans have been found to be compliant with IBC provisions. Now, voting will take place next week,” one of the sources said. SHOT IN THE ARM « IN THE NEWS JIL CoC to vote on NBCC & Suraksha bids next week funds holding over 95% of assets in these companies,” the analysts wrote. “Such concentrated positions, along with negligible onshore ownership, createasymmetricrisk-rewardaslarge investors conspicuouslyavoidAdani.” The analysis underscores thevulnerability of the rapid wealth surge Adani has seen in 2021, beating the gains forWarren Buffett and compatriot Mukesh Ambani. Arepresentative forAdani Group declined to comment immediately. The overseas funds hold a large chunk of shares,effectivelyreducing thepublicfloatandleavingthestocks pronetovolatility,theanalystswrote. Continued on Page 12 CHENNAI/KOCHI
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