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XLVII NO. 106, 14 PAGES, `10.00 (PATNA `10.00, RAIPUR `10.00) 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: 52,484.67 ▲ 166.07 NIFTY: 15,722.20 ▲ 42.20 NIKKEI 225: 28,783.28 ▲ 76.24 HANG SENG: 28,310.42 ▼ 517.53 `/$: 74.75 ▼ 0.19 `/€: 88.38 < > 0.00 BRENT: $75.77 ▼ $0.07 GOLD: `47,434 ▲ `359 — IN THE NEWS India joins OECD-G20 global tax deal INDIAAND A majority of members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting have adopted outline of a consensus solution to address the tax challenges arising from the digitalisation of economies, reports fe Bureau in New Delhi. Price check: Govt imposes stock limits on pulses THE CENTRE ON Friday imposed stock limits on all pulses except moong for wholesalers, retailers, millers and importers, to bring down the prices of these items, which have risen in retail markets since March, reports fe Bureau in New Delhi. Bank credit grows 5.82%, deposits by 10.32% BANK CREDIT GREW 5.82% to `108.42 lakh crore and deposits rose 10.32% to `152.99 lakh crore in the fortnight ended June 18, 2021, the RBI data showed, reports PTI. Bank advances stood at `102.46 lakh crore and deposits at `138.67 lakh crore in the fortnight ended June 19, 2020. PUBLIC PROJECTS Tech transfers with China firms on hold DPIIT resists ‘blanket exemption’ to firms with such pacts with Chinese entities to bid for public project FE BUREAU New Delhi, July 2 THE DEPARTMENT FOR promotion of industry and internal trade (DPIIT) has put on hold the relaxations recently granted by the finance ministry, which had effectively allowed domestic companies having technology transfer arrangements with Chinese firms to bid forpublic projects. Citing representations fromindustrybodiesthathave expressed concern over the department of expenditure’s (DoE’s) decision last month, the DPIIT has resisted the Different strokes DPIIT feels finance ministry exemption to firms having ToT pacts with Chinese entities may facilitate backdoor entry by suspicious firms ■ It has sought a review of the expenditure dept decision After the Galwan clash, govt had effectively barred bidders from China from participating in public projects without its approval “blanket exemption” to firms having transfer of technology (ToT) pacts with Chinese entities from mandatory registration with it and sought a review of the decision. Continued on Page 2 DISTRESS CALL COVID RELIEF ‘Targeted, not lavish, credit works better’ Taxpayers’ money ought to be spent well and optimally; globally, direct fiscal transfers have had limited impact FE BUREAU New Delhi, July 2 LAVISH CASH TRANSFERS that are not well-targeted might not be an appropriate tooltomitigatetheblowofacrisis such as the Covid-19 pandemic, chief economic advisor (CEA) Krishnamurthy V Subramanian said on Friday, amid a widespread perception that undue fiscal wariness is being shown by the government while sections of the people, industry and trade are in acute Voda Idea presses for tariff floor price again Telco says it has been unable to raise rates due to competitive pressures Unconditional transfers are not well-targeted and can also go to the undeserved (farm loan waivers, for instance). But credit, backed by sovereign guarantees, can serve better than wasteful revenue expenditure-based policies to address distress. Ultimately, taxpayers' money needs to be spent really well. distress and in need of prompt help.Well-directedcredittovulnerablebusinessesandindividuals,backed bysovereign guarantee, amounted to quasi cash transfers and could serve the reallyneedybetterand prop up consumption, he said at the Idea Exchange programme hosted byThe Indian Express. Continued on Page 2 Exports up 47% in June, record $95 bn in Q1 Consumer protection: FDI rules in e-commerce set to tighten BEATINGTHECOVIDimpact, merchandise exports surged 47% in June from a year before to $32 billion,mirroring the effect of a favourable base and improved demand from key markets, reports fe Bureau in New Delhi. COMMERCE AND INDUSTRY minister Piyush Goyal on Friday said the government couldissueaclarificationonitsforeigndirect investment(FDI)policyfore-commerce“very shortly”,reports fe Bureau in NewDelhi. The statement comes amid reports that thegovernmentcouldtightenthenormsthat could force players likeAmazon and Flipkart Importantly,exports recorded a 30% jump even over the same month in 2019,before the pandemic struck. Withthis,goodsexportsin the June quarter hit $95 billion, a record for any quarter in anyyear. ■ Page 2 to restructure their existing marketing tieups. However, Goyal stressed that his ministry is not changing the FDI policy governing e-commerce but merely issuing clarifications on it, as the policy is already crystalclear.TheFDIpolicybarse-tailershaving foreign investments from offering discounts directlyor indirectly. ■ Page 2 A drive to reduce dependence on imported materials and technology is pushing India to invest in a battery technology that uses aluminium rather than lithium as ingredient. ■ Motobahn, P7 FE BUREAU New Delhi, July 2 Apollo Hospitals continued to see revival of hospital biz Creation of omni-channel platform via AHL expected to draw investor capital; FY22/23e EPS up 6.9/7.6% given currnt outlook; TP raised to `3,550 from `3,050; ‘Buy’ maintained ■ Investor, P7 QuickPicks New export strategy may focus more on key component HAVING SET an ambitious merchandise export target in FY22, India is firming up plans to bolster its exports of scores of key products where its share in the global market has traditionally remained paltry, reports fe Bureau in New Delhi. Mechanical machinery, electronics, medical and surgical equipment, sports goods, toys and certain farm commodities are among a number of products where India has the scope to substantially raise its exports, according to an analysis by FIEO. PAGE 2 UTI AMC stake: SBI, LIC move apex court against SAT order THREE STATE-OWNED financial-sector entities — State Bank of India, LIC and Bank of Baroda — on Friday moved the Supreme Court against the SAT order that partly upheld the Sebi’s decision to penalise them for failing to reduce their stakes in UTI Asset Management, reports Indu Bhan in New Delhi. SAT in its January 7 judgment did not find any justifiable reason to impose any monetary penalty in the matter, but substituted the monetary penalty of `10 lakh with that of a “warning”. PAGE 6 Facebook actioned 30 m content pieces during May 15-June 15 FACEBOOK "ACTIONED" over 30 million content pieces across 10 violation categories during May 15-June 15 in the country, the social media giant said in its maiden monthly compliance report as mandated by the IT rules, reports PTI. Instagram took action against about two million pieces across nine categories during the same period. Under the new IT rules, large digital platforms (with over 5 million users) will have to publish periodic compliance reports every month. PAGE 5 TECH FRIDAY Union finance minister Nirmala Sitharaman during her visit to the Institute of Bioinformatics and Applied Biotechnology at Electronics City, in Bengaluru on Friday PTI FUNDRAISING Cars24 on road to reach $2-bn value SARITHA RAI Bengaluru, July 2 INDIA’S CARS24 SERVICES is in talks with Yuri Milner’s DST Global and otherinvestors fora funding round that could double the used-vehicle site’svalue to $2 billion, a person familiar with the discussions said. India’s biggest online marketplace for pre-owned cars is set to raise $200 million to $250 million from existing backers, including DST, which may lead the round, said the person, who asked not to be named discussing a private ■ Other Used-vehicle site to raise $200-250 million from existing backers, including DST, which may lead round investors, including Moore Capital Management, could join the deal ■ Could value Cars24 at upto $2 billion, up from about $1 billion in November deal.Otherinvestors,including Moore Capital Management, could join the deal,which could close in a few weeks, the person added. The pact could value Cars24 at $1.6 billion to $2 billion, up from about $1 billion in November, whenitclosedaSeriesEround, the person said. Used-vehicle sales are booming in India because consumers are shunning mass transit systems to avoid catching Covid-19. While the pandemic has stymied sales of new autos, pre-owned cars are in demand as cost-conscious buyers seek value for money. Continued on Page 2 STATE-RUN NTPC IS planning to float the initial public offering (IPO) of its recently-formed renewable energysubsidiaryin “one-and-a-half to twoyears”,a seniorcompanyexecutive said. The company is considering to spin off the subsidiary, which willraisefundstoexecuteaplan to create 60 giga-watt (GW) green capacity,double the level planned earlier,by2032. NTPC, earlier known as NationalThermalPowerCorporation,hadpredominantlybeen acoal-basedplayer,butinrecent years,itforayedintootherareas, includingsolarandwindenergy. InOctober2020,ithadincorporated a wholly-owned subsidiaryNTPCRenewableEnergy to focus on its green energy business. The company will likely infuse about 15-20% 1,66,80,000 92,07,030 VOICE Usage per customer (mins) 657 823 1,053 Volume (million mins) 5,29,000 10,32,900 9,96,793 Arpu (`) 107 138 145 putting in place floorprices for bothdata andvoice tariffs,as it felt that the health of the telecom operators had improved post December 2019 tariff hikes and the Supreme Court allowing them to pay their adjusted gross revenue (AGR) dues in instalments over a 10year period. Continued on Page 2 60 GW installed RE capacity by 2032 The ambitious target entails a total investment of `2.5 lakh crore ■ Quantum of money to be raised through the initial public offering not disclosed ■ But equity component of the firm would be around `50,000 crore equity into the renewable energyprojects,whiletherestof the projects will be financed throughdebt,thepersonstated. Continued on Page 2 financialround,alsosawparticipation from Brunei Investment Agency and existingbackers3one4Capital, Bertelsmann India Investments,VertexGrowthFund and Vertex Ventures SoutheastAsia & India. ■ Page 4 EU working to allow acceptance of Covishield ROBIN EMMOTT & WILLIAM JAMES Brussels/London, July 2 THE EUROPEAN COMMISSIONsaidonFridayitislooking at ways to agree a coordinated approach to accepting the IndianversionofAstraZeneca’sshot, Covishield,acrosstheEuropean Union butwill need some time. The Commission reiterated that the jab, which has been given to millions of Britons, is not yet approved by the European Medicines Agency (EMA) or recognised under the EU's newvaccinepassportschemeto travel freely within the bloc from July 1.“I don’t think you can say that it won’t be possible to come to the EUwith thisvaccine,” a spokesperson forthe EU executivetoldaregularbriefing. “Inordertoensureacoordinated approach, the Commission is in discussion with the member states to see which is the best approach to follow,” a second spokesperson said. The EU vaccine passport programme allows people to travel freely within the bloc as long as they have had one of four Western-made vaccines. While this includes the AstraZeneca shot, it does not extend to Covishield. Continued on Page 2 ● EYE ON THE SKY COVER DRIVE Digit hits $3.5-bn value on funding boost SARITHA RAI Bengaluru, July 2 FINTECH START-UP DIGIT boosted its valuation to $3.5 billion in a fresh funding round, gaining capital for its effort to win insurance customers via mobile technology. Thecompanyisraising$200 million from Sequoia Capital India,existing investor Faering Capitalandothers,accordingto astatementonFriday.It’soneof the largest funding rounds in India’s fast-expanding insur- To raise funds for achieving its target of Licious raises $192 m in Temasek-led round LICIOUS HAS RAISED a fresh $192 million in funding led by new investors Temasek and Multiples Private Equity, reports fe Bureau in New Delhi. The investment,which is partofthecompany’sseriesF 16,840 ● COVID-19 NTPC Renewable charts mega capex plan; IPO in FY23 India gives aluminium a chance to take on lithium DATA Usage per customer (MB) 48,56,000 GREEN GOALS Special Features Bharti Airtel Volume (Millon MB) UNABLE TO UNILATERALLY raise tariffs,which is affecting its fund-raising plans, Vodafone Idea has once again sought regulatory intervention for fixing floor price for telecom tariffs. “The biggest issue that is a problem in this sector today is the pricing which is much lower than it needs to be. A tariff hike is absolutely needed. We believe that floor pricing remains the best and the most preferred way to fix this issue,”Ravinder Takkar,managing directorand CEO,VILtoldanalystsinapostearnings call on Friday. Hesaidthatallindustryrepresentations made to the Telecom Regulatory Authority of India (Trai) have highlighted that that a floorpricing is neededfortelecomtariffsandresults of the consultation are awaited. However, it remains to be seenifthegovernmentandthe regulator are again keen to pursue this proposal.As of last year,Trai is understood to have dropped the proposal of Aswastheseriesofstimulus packages announced in the last financial year, a sizeable chunk of its latest relief measures (`2.68 lakh crore of the `6.29lakh-crorepackage)announced on Monday also comprised mostlycredit guarantees. RJio 13,068 13,300 FE BUREAU Mumbai, July 2 —KRISHNAMURTHY V SUBRAMANIAN, CEA Voda Idea ■ Fintech start-up is raising First investor was Canadian billionaire PremWatsa, early backers includeVirat Kohli $200 million from Sequoia Capital, existing investor Faering Cap, others ■ This market is also targeted by rival start-ups, including Amazonbacked Acko ance market also targeted by rival start-ups, including Amazon-backedAcko. Digit is trying to expand ■ It’s one ofthe largest funding rounds in India’s fast-expanding insurance market ■ Digit trying to expand India base by easing process of buying cover, submitting claims India’s base of the insured by making the process of buying cover, submit- ting claims and receiving payments easier. The company offers smartphone-enabled self-inspection and claim submissions by voice, and processes service requests via messaging.The start-up,whichprovides health, travel and auto insurance, said the latest funding round is subject to regulatoryapprovals. Continued on Page 2 Branson to beat Bezos into space by nine days MARCIA DUNNAP Cape Canaveral, July 2 VIRGIN GALACTIC'S RICHARD Branson is aiming to beat fellowbillionaire Jeff Bezos into space by nine days. Branson’s companyannouncedonThursday evening that its next test flightwill be July11 and that its founder will be among the six people on board.The winged rocket ship will soar from New Mexico—thefirstcarryingafull crew of company employees. It New Delhi Richard Branson, Virgin Group founder will be only the fourth trip to spaceforVirgin Galactic. Continued on Page 2
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