OPINION, P6 ECONOMY, P2 AKHILESH TILOTIA India’s smart cities can learn from New York on becoming ‘greener’ INTERNATIONAL, P8 EDITORIAL FOURTH INSTALMENT BAD PRESS Govt must plan for school reopening; shut schools worsening gap between poor & better-off students Finance ministry releases `9,871-cr grant to 17 states Musk’s Tesla unveils much cheaper Model Y in China NEW DELHI, FRIDAY, JULY 9, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 111, 16 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: 52,568.94 ▼ 485.82 NIFTY: 15,727.90 ▼ 151.75 NIKKEI 225: 28,118.03 ▼ 248.92 HANG SENG: 27,153.13 ▼ 807.49 `/$: 74.71 ▼ 0.09 `/€: 88.41 ▼ 0.15 BRENT: $73.26 ▼ $0.17 GOLD: `48,096 ▲ `261 JUNE RIDE BREACH OF RULES IN THE NEWS Inflows into equity MFs plunge 40% in June Won’t protect you, HC tells Twitter Directs it to submit compliance affidavit within two weeks Future-RIL deal: SC to hear Amazon’s plea on July 20 Continued on Page 2 ■ Social media firms like Twitter need to appoint certain set of resident, Indian company officers to redress grievances ■ Twitter till date has not fully complied with the rules ■ Govt sent it three reminders for compliance What happens in case ofnon-compliance with the rules: ■ Social media firms have legal immunity under Section 79 as they host third party content ■ Twitter has now lost this legal immunity and action can be taken against it by govt ■ Rule 7 in the new law empowers the govt to initiate criminal action against the company for unlawful content —Ashwini Vaishnaw, newly sworn-in electronics & IT minister, on government-Twitter stand-off ‘Our online customer base doubled during pandemic’ Ramneek Khurana, cofounder, Lenskart, says the eyewear company is beefing up supply chain and tech ops to increase its capacity to ship out glasses more than tenfold ■ BrandWagon, P7 QuickPicks Ahead of IPO, govt scraps post of chairman at LIC, creates CEO AHEAD OF Life Insurance Corporation’s (LIC’s) proposed initial public offering this fiscal, the government has tweaked rules to stipulate that the state-run insurance behemoth will now have the post of chief executive officer (CEO) and managing director (MD) instead of chairman, reports fe Bureau in New Delhi. The finance ministry has notified the changes to the Life Insurance Corporation of India (Employees) Pension (Amendment) Rules. PAGE 2 Cabinet nod to `23,123-cr package to boost emergency health infra THE UNION Cabinet on Thursday approved a `23,123-crore financial package for improving health infrastructure in the country to fight the Covid pandemic, reports PTI. Addressing a press conference after the first meeting of the Union Cabinet following its reshuffle on Wednesday, health minister Mansukh Mandaviya said the package will be implemented over the next nine months till March 2022. Mandaviya said this is the second phase of the Emergency Response and Health System Preparedness Package. PAGE 3 Cairn gets order to attach India assets FE BUREAU New Delhi, July 8 ● COVID WOES Special Feature FRENCH COURT BACKING Energy giant says still prefer amicable solution; govt says will take legal recourse ALL THOSE WHO LIVE AND WORK IN INDIA WILL HAVE TO ABIDE BY THE RULES OF THE COUNTRY. THE SUPREME Court on Thursday said it will hear on July 20 Amazon’s plea against the Delhi HC order which stayed the directive by its singlejudge and paved the way for the multi-billion dollar deal to merge Future Retail with Reliance Retail, reports PTI. (Clockwise from above) Law minister Kiren Rijiju; textiles minister Piyush Goyal and MoS Darshana Jardosh with Smriti Irani; health minister Mansukh Mandaviya; FM Nirmala Sitharaman with I&B ministerAnuragThakur TCS misses Q1 Street estimates, net profit falls 2.6% FE BUREAU Mumbai, July 8 TATA CONSULTANCY SERVICES (TCS), the country’s largest software services exporter, on Thursday disappointed with its first-quarter performanceasitmissedStreet estimates on all fronts, impacted by a sharp 14% dropseeninthe India market. While the constant currency (CC) revRajesh enue growth of Gopinathan, 2.4%wasweakCEO, TCS er sequentially from 4.2% in theMarchquarter,attritionduringthequarter surged 140 basis points. Thenetprofitdeclined2.6% sequentially to `9,008 crore — below Bloomberg consensus estimates of `9,390.94 crore. Revenues during the quarter rose by 3.9% sequentially to `45,411 crore, almost in line withBloombergconsensusestimates of `45,755.04crore. ■ Full report on Page 4 INDIA’S HIGH-PROFILE tax disputewithCairnEnergytook an embarrassing turn for New Delhi on Thursday, with the Scottish energy company reportedly securing a French court order to seize about 20 Indian government properties in Central Paris. The properties,that mostly comprise flats valued at more than €20 million, are used by the Indian government establishment in France, CAIRN ENERGY SPOKESPERSON "Move a necessary preparatory step towards taking up the ownership of (the Central Paris) properties. We still prefer to reach an agreed, amicable settlement with New Delhi to close the matter." FINANCE MINISTRY The government has not received any notice, order or communication in this regard from any French Court....whenever such an order is received, appropriate legal remedies will be taken...” PTI reported, quoting people with “direct knowledge of the matter”. The company’s move is in line with its declared plan to recover $1.7 billion ‘due’ from New Delhi by attaching assorted Indian assets overseas, including real estate andAirIndia planes,following BOOSTER SHOT PRESS TRUST OF INDIA New Delhi, July 8 ■ The global Ph-3 studywill include more than 35,000 Continued on Page 2 ● PMFBY Sanofi-GSK vaccine gets Ph-3 trial nod SANOFI AND GSK have received approval for their Phase-3 clinical study in India toassessthesafety,efficacyand immunogenicity of their adjuvanted recombinant-protein Covid-19vaccine candidate. The global, randomised, double-blind Phase 3 studywill include more than 35,000 volunteersaged18andolderacross sites in the US,Asia,Africa, and Latin America, Sanofi said in a statement onThursday. “India is participating in SanofiPasteur’spivotalPhase-3 study,andsubjecttosubsequent approvals,weshouldsoonbegin enrollment of study participants in the country,” Sanofi a December 2020 international arbitration award overturning levy of Delhi’s retrospective taxes. However, Cairn kept the options open fora conciliatory settlement of the tax dispute with the Indian government. volunteers aged 18 and above across sites in the US,Asia,Africa, and LatinAmerica ■ In stage I, the studywill investigate the efficacy ofavaccine formulation targeting the original virus strain In next, itwill evaluate a second formulation targeting Betavariant Pasteur India, country head, AnnapurnaDas said. Continued on Page 2 Centre open to 'Beed formula’, writes to states THE CENTRE HAS written to stategovernmentsseekingtheir viewsonincludingtheso-called ‘Beed formula’ as an option under its flagship crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY), reportsPrabhudattaMishrain NewDelhi.The move comes at a time when several states have developed cold feet on PMFBY, citing the cost of the premium subsidybeing borne bythem. Under the ‘Beed formula’, alsoknownasthe80-110plan, theinsurer’spotentiallossesare circumscribed—thefirmwon’t have to entertain claims above 110% of the gross premium. Theinsurerwillrefundthepremium surplus (gross premium minus claims) exceeding 20% of gross premium to the state government. ■ Page 2 FE BUREAU Chennai, July 8 RETAIL AUTO SALES showed improvement across categories in June, registering an overall growth of 23% yearon-year with the easing of lockdowns which led to the reopening of dealerships across most of the states and districts. However, the sales across categories continued to be depressed compared with the 2019 levels, declining by 28%. Compared with 2019, everysegmentbarringtractors sawadecline,accordingtodata releasedbyFederationofAutomobile Dealers Associations (Fada) on Thursday. Though retail sales started togainsometractioninJune— as they did last year with the opening up after lockdowns — and the trend may continue if there’s no third wave, they are still far below the wholesales for the month reported by the manufacturers earlier. The slowerretail growth compared with the wholesales could be because reopening of dealerships in several districts happened only after the first fort- ILLUSTRATION: ROHNIT PHORE billions of dollars in revenue across its businesses, including advertising, in-app purchases and smart home gadgets. Google said on Wednesday the litigation was about boosting a handful of major app developers 3-wheelers 12,077 22.0 14,732 Passenger vehicles 1,28,360 1,84,134 43.5 Tractors 45,735 52,261 14.3 Commercial vehicles 10,619 35,700 236 All-India vehicle retail sales Jun ‘20 Jun ‘21 Source: Fada night of June. For instance, Maruti Suzuki,which reported a y-o-y growth of 141% inwholesales in June,saw retail sales growth ofjust11%.Similarly,Hyundai Motor India’s wholesale growth in June was 90% but retail sales growthwas at 42%. Continued on Page 2 DealShare bags fresh $144 m in funding FE BUREAU New Delhi, July 8 SOCIAL COMMERCE STARTUPDealSharehasraisedafresh $144 million in funding led by Tiger Global at a post-money valuation of $455 million.The financialroundwasalsobacked by a slew of other investors, including WestBridge Capital, Alpha Wave Incubation, Z3 Partners, DST Global, Matrix Partners India and Alteria Capital,thecompanysaidinastatement onThursday. The investment comes barely seven months after a clutch of investors infused about$21millionintothefirm. The company’s total fund tally nowstands at $183 million. The Bengaluru-based startupclaimsthatitsvaluationhas seen a ninefold increase with the fresh funding on the back A typical social commerce consumer spends 2 hours on an average per day on chat, social media & video apps ■ WhatsApp & Facebook are the social platforms popular among consumers for commerce ■ Fashion is the most frequently purchased category followed by beauty & personal care, food & grocery Over 85% ofsellers on social commerce platforms are small retailers, largely offline They derive up to 35% oftheir revenues from social commerce Source: Bain & Company of“high growth momentum”. Continued on Page 2 Zomato’s `9,375-cr IPO opens on July 14 ZOMATO WILL launch its `9,375-crore IPO on July 14, the company confirmed on Thursday, reports fe Bureau in New Delhi. The offer includes fresh issuance of `9,000 crore, about 20% higher than the initial esti- No fair Play: 37 US states sue Google THIRTY-SEVEN US state and district attorneys general sued Alphabet’s Google onWednesday,alleging that it bought off competitors and used restrictive contracts to unlawfully maintain a monopoly for its app store on Android phones. The allegations about Google’s Play Store stem from an investigation involving nearly every US state that began in September 2019 and have already resulted in three other lawsuits against the company. The cases threaten to force major changes to how it generates 16.9 EXPANSION MODE IN-APPROPRIATE DIANE BARTZ, PARESH DAVE & KAREN FREIFELD Washington/Oakland, July 8 9,30,324 « THE RESERVE Bank of India (RBI) on Thursday asked banks and financial institutions to use any widely accepted alternative reference rate (AAR) instead of LIBOR (London Interbank Offered Rates) as the reference rate for entering into new financial contracts, reports PTI. TAKING CHARGE %, y-o-y « RBI asks banks to prepare for LIBOR transition came into force from May 26 2-wheelers 7,95,819 « THE DELHI HIGH COURT on Thursday categorically told Twitter it was in violation of the May26 deadline to comply with the new Information Technology (IT) Rules, and therefore, the court will not extend any protection to it in case the government takes any action against it for breach of law. “Won’t protect you if the Centre takes any action against you…You are actually in contempt as you didn’t follow what you said that day…You are already in violation of deadline,” the high court said. Volumes continue to be low compared with 2019 levels « FE BUREAU New Delhi, July 8 Point of discord ■ New IT rules « INFLOWS INTO equity mutual funds fell sharply by 40% to `5,988 crore in June on profit booking by investors as stock markets witnessed sharp rallies in recent times, data from Amfi showed, reports PTI. The equity MFs saw a net inflow of `10,083 crore in May, the highest fund infusion in 14 months. Retail auto sales gain some speed that want preferential treatment rather than about helping small businesses or consumers. It maintains that unlike Apple Inc with its App Store on iPhones,Android supports competitors to the Play Store. “Android and Google Play provide openness and choice that other platforms simply don’t,” the company said in a blog post. The states,led byUtah,NewYork, North Carolina and Tennessee, argue that Google has generated “enormous profit margins”from the Play Store by engaging in illegal tactics to preserve monopolies in selling Android apps and in-app goods. Continued on Page 2 New Delhi mate on the back of “strong investor demand” and a `375-crore offer for sale by existing shareholder Info Edge.The company is eyeing a post-money valuation of `64,365 crore at the top end of the price band. ■ Page 4
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