OPINION, P6 NATION, P4 ADITI NAYAR There is a need to increase monthly tax devolution to states BACK PAGE, P12 SHOBHANA SUBRAMANIAN COMBATTING COVID HOUSE SCANDAL High household-debt-to-GDP ratio likely not a worry; household-savings-to-GDP higher than historical rate Modi urges people to shed hesitancy, get vaccinated UK to probe leak of footage that forced health minister to quit NEW DELHI, MONDAY, JUNE 28, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 101, 12 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 TWITTER'S INTERIM resident grievance officer for India has stepped down, leaving the microblogging site without a grievance official as mandated by the new IT rules to address complaints from Indian subscribers, according to a source, reports PTI. LITTLE DISRUPTION Telcos to take a long pause on tariff hikes Jio to make big gains with launch of new smartphone only if pricing & tariffs in line with 2G rates; ADIA pays $20 m for minority stake Vi to be biggest loser in MobiKwik ABU DHABI Investment Authority (ADIA), the UAE's sovereign wealth fund, has picked up a minority stake in the IPO-bound digital payments player Mobikwik for nearly $20 million (about `150 crore), valuing it at $700 million, the company has said, reports PTI. A first: Drones drop bombs at IAF base in Jammu, 2 injured IN WHAT is the first time Pakistan-based terrorists have used drones to strike vital installations, two bombs were dropped at the IAF station in Jammu airport in the early hours of Sunday, officials said, reports PTI. Two IAF personnel were injured in the explosions that took place around 1.40 am within six minutes of each other. FE BUREAU New Delhi, June 27 RELIANCE JIO'S SEPTEMBER 10 launch of its new,affordable 4G smartphone,in partnership with tech major Google, has ruled out the prospects of any tariff hike bytelecom operators forquite a long periodof time. Astatus quo in tariffswould still see improvement in Jio’s average revenue peruser(Arpu) as some subscribers of its current cheap 4G phone,JioPhone, are expected to upgrade to the new one, JioPhone Next. Rival Estimated Jio phone users (mn) % total subs (RHS) 120 114 30 100 25 97 80 60 20 0 15 10 17 5 16 2018 2019 2020 March 39 42 20 55 40 Estimated number of JioPhone users coming out of 3-year contracts (mn) 2021 0 Source: Company, Jefferies estimates Bharti Airtel would also not be impacted as its tariffs are alreadyatapremiumtoJio’sand it has the advantage of having premium users. It is Vodafone Idea(Vi),whichiscash-strapped aswellastheweakestintermsof subscriber addition, which would lose out the most in the fresh wave of competition with regards to tariff packages and acquiring newsubscribers. FY22E FY23E FY24E “ForJiotobeabletocapturea sizeable share of the 2G customer base, we believe it will need to be competitive on both devicepricing(whichshouldnot be materially higher than featurephoneaveragesellingprice) andtariffs(whichwillneedtobe inlinewith2Gtariffs),Goldman Sachssaid in a report. Continued on Page 2 ● GEARING UP High-level panel holds key meet on PSBs’ privatisation PRESS TRUST OF INDIA New Delhi, June 27 INCHINGASTEP closerto privatisation of two public sector banks (PSBs), a high-level panel headed by the Cabinet secretaryrecentlyheld a meeting to thrash outvarious regulatory and administrative issues so that the proposal could be placedwith the group of ministers on disinvestment or alternative mechanism (AM) for approval. Pursuant to the announcement made by finance minister Nirmala Sitharaman in her 2021 Budget speech, the Niti Aayog has suggested a couple of bank names for privatisationtotheCoreGroup of Secretaries on Disinvestment headed by the Cabinet secretary in April, sources said. Continued on Page 2 SPIKE IN PRICES Edible oil imports seen surging 65% High global prices inflate import bill, over a third goes to govt as taxes PRABHUDATTA MISHRA New Delhi, June 27 AFTER CRUDE PETROLEUM and coal,edible oils are threatening to strain India’s current account,with imports of these items seen surging 65% on year to $17 billion in the 2020-21 ‘oil year’ (NovemberOctober)duetoaspikeinglobal (million tonne, Nov-Oct period) Edible oil imports Domestic consumption 20 15 10 5 0 against levy of retrospective taxes,reports PTI. A lawyer representing the company said Cairn will bring lawsuitsinseveralcountriesto makestate-ownedfirmsliable to pay the $1.2 billion plus interest and penalties that are due from the Indian govern- PRASANTA SAHU & ANUPAM CHATTERJEE New Delhi, June 27 LARGE CENTRAL PUBLIC SECTOR entities — companies and undertakings — achieved 10% of their capital expenditure target for FY22 in the first twomonthsofthecurrentfiscal, by spending `63,000 crore, according to official sources. Given the second Covid wave, this is a decent number; these entitiesachieved justabout2% oftheannualcapextargetinthe year-ago periodwhen a nationwide lockdown had brought ment. Last month, Cairn brought a lawsuit in the US DistrictCourtfortheSouthern District of New York pleading that AI is controlled by the Indian government so much thattheyare‘alteregos’andthe airline should be held liable. ■ Full report on Page 5 Kharif sowing* -7.1 312 % change, y-o-y; As of June 25, 2021 -50.5 Edible oil imports Change (Nov-Oct), 2020-21 on year (industry estimate) $17 bn 65% *Edible oil imports roughly 97% of vegetable oil imports **Trade estimate 2020-21** Source: SEA of India third of the importvalue. Continued on Page 2 ■ Coal imports up 30% to 22 m tonne in April, Page 5 CPSEs put up decent show on capex front Slow start to Kharif sowing; acreage of some pulses, soyabean high -18.5 2006-07 Vegetable oil imports* ($bn) FY17 10.9 FY18 11.6 FY19 9.9 FY20 9.7 FY21 11.1 ● SECOND WAVE ● SUMMER HARVEST -62 11.8 prices.Thegovernmentdoesn’t appeartoworrymuch,though; it is striking it rich through highimporttaxesonedibleoils by appropriating more than a Arbitration dues: After Air India, Cairn to target more govt firms AFTER AIR INDIA, Britain’s Cairn Energy plans to target assets of state-owned firms and banks in countries from theUStoSingaporeasitlooks to ramp up efforts to recover the amount due from the Indian government after winning an arbitration 21.5 25 4.72 5.61 8.18 8.82 8.37 9.98 10.39 11.62 14.42 14.57 15.08 14.52 14.91 13.18 13.1 IN THE NEWS Twitter interim grievance officer for India quits Madhya Haryana Rajasthan Pradesh Maharashtra Gujarat PRABHUDATTA MISHRA, NANDA KASABE & DEEPA JAINANI New Delhi/Pune/ Lucknow, June 27 SOWING OFSUMMER cropsin the first three weeks of the season has remained below last year’slevelsinmostpartsofthe country,accordingtodatagatheredbyFEfromafewstates,but these are still very early days to concludethatkharifareawillbe lowerthis time around. While the southwest monsooncoveredmostofthecountry earlier than the normal schedule, causing sufficient precipitationtocreateaground conduciveforsowing,astalling ofthephenomenononJune19 caused some problems for farmers in manyareas. While waterlogging occurred in a section of the areas covered by monsoon, therewas rainfall deficiencyin some other parts. Continued on Page 2 New Delhi economic activities to a standstill.WiththeCentre’sthruston investment-led economic growthrevival,thefinanceministry islearnttohaveaskedtheCPSEs toacceleratethepacetoachieve the FY22 target byQ3 itself. Continued on Page 2
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