OPINION, P6 ECONOMY, P2 S RAMADORAI & R SRINIVASAN Synthetic biology has key use-cases,like climate-friendly burger INTERNATIONAL, P8 EDITORIAL ‘STRONG FUNDAMENTALS’ OLYMPIC DILEMMA Govt must cut fuel taxes since businesses, consumers pinched hard; infra funds can come from NIIF etc India will continue to attract foreign investments: FM Toyota not to air Games TV ads, CEO to skip opening ceremony HYDERABAD, TUESDAY, JULY 20, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XVIII NO. 63, 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: 52,553.40 ▼ 586.66 NIFTY: 15,752.40 ▼ 171 NIKKEI 225: 27,652.74 ▼ 350.34 HANG SENG: 27,489.78 ▼ 514.90 `/$: 74.88 ▼ 0.31 `/€: 88.20 ▼ 0.06 BRENT: $70.95 ▼ $2.64 GOLD: `47,931 ▼ `251 (% growth, y-o-y, in exports in FY21) Total goods -10 -28 -27 -7 Continued on Page 2 Labour codes: Govt may address concerns THE LABOUR MINISTRY is considering fine-tuning somecontentiousprovisions and rules cncerning the four labour codes passed by Parliament recently, in order to ensure that these reformist lawstakeeffectfromOctober 1 throughout the country, reportsSuryaSarathiRayin New Delhi. A government sourcesaidallthefourlabour codes — code on wages, industrial relations, social security and occupational safety & health — will be implemented at one go. ■ Report on Page 3 TELCOS’ PLEA Special Features DICGC ` ` 5 lakh % % % Optimise bank deposits coverage under DICGC Spread deposits across banks or open multiple a/cs under different capacities in same bank with up to `5L in each to get maximum DICGC protection ■ Personal Finance, P7 HDFC Bank operating results reflected Covid wave’s impact Slippages were up to 2.9% of past year loans; likely to moderate from Q2; biz trends for July are close to normal/pre-Covid levels; ‘Buy’ maintained with a target price of `1,900 ■ Investor, P7 Bharti Airtel Vodafone Idea not just once, but twice, thrice stated that the AGR demand can’tberecomputed,abenchled by justices LN Rao, SA Nazeer andMRShahsaidthejudgment 4,197 2,197 16,798 Dues as per DoT Dues as per self-assessment Dues paid (in ` crore) 7,854 58,254 18,004 13,004 THE SUPREME COURT on Monday said it will pass orders onthepleaoftelecomoperators — Bharti Airtel,Vodafone Idea, andTataTeleservices—seeking rectification of arithmetical errorsinthecalculationoftheir adjusted gross revenue (AGR) dues, but reminded them that its earlier order on the matter has ruled out any recomputation of the dues. Observing that the SC had 43,980 FE BUREAU New Delhi, July 19 21,533 No reassessment of AGR dues: SC Tata Teleservices of September 1, 2020, had clearly spelt out that there will be no reassessmentof the dues. Continued on Page 2 MAJORITY STAKE Blackstone’s $250-m bet on Simplilearn FE BUREAU New Delhi, July 19 PRIVATEEQUITYFUNDSmanaged by Blackstone have acquired a majority stake in ed-tech firmSimplilearnina$250-million deal.The investment,a mix ofprimaryandsecondarytransactions,hasgivenfullexittothe start-up’searlyinvestorsHelion Ventures Partners, Mayfield Fund and Kalaari Capital, Simplilearn’s founder & CEO Krishna Kumar told FE. Blackstonewillbuynearly70%stake in the start-up,sources said. The Bengaluru, San Francisco and California-based firm willleverageBlackstone’sglobal footprint to expand its reach.It will use the fresh capital infusion to launch new programmes, ink partnerships with more businesses and universities,create better products and ■ Simplilearn The deal is Blackstone’s first PE investment for a majority stake in a consumer tech firm inAsia to leverage Blackstone’s global footprint to expand reach ■ Start-up has catered to over 2 million professionals across 150 countries ■ Says is open to launching an IPO build on its technological capabilities,Kumarsaid. Continued on Page 13 QuickPicks Lenskart raises $220 m from Temasek, others Economy to grow at 6.5-7% in FY23: CEA OMNI-CHANNEL eyewear retailer Lenskart on Monday said it has completed a $220-million (about `1,644.2 crore) transaction led by Temasek and Falcon Edge Capital, reports PTI. The current round also saw participation from Bay Capital and Chiratae, a statement said. This round of funding comes a month after it raised $95 million from global investment fund KKR. PAGE 4 THE ECONOMY will likely grow at 6.5-7% in FY23 and the rate of expansion could further accelerate thereafter, as the fruits of structural reforms undertaken in the wake of the Covid-19 pandemic will be visible in the coming years, chief economic adviser (CEA) Krishnamurthy V Subramanian said on Monday, reports fe Bureau in New Delhi. PAGE 2 ‘GST transfers to states fell short by `81k cr’ Centre’s admission comes even as it is borrowing large sums to bridge shortfall for second year in a row FE BUREAU New Delhi, July 19 THE CENTRE ON Monday acknowledged in Parliament that an amount of `81,179 crore was yet to be released to the state governments towards fully compensating them for their goods and services tax (GST) revenue shortfall for the financial year 2020-21.While several states have been vocal about these dues, the Centre hasn't categorically endorsed the claimsso far. The statement raises the question as to how the amount would be mobilised and increased the chances of a WIDENING GAP Cess collected Compensation required^ (` crore) 2,59,000# of 20-40% of usual workforce — threatens to derail the recent growthmomentumandimpair exporters’abilitytohonoursupplycommitmentsontimeamid a fast depletionof inventory. FY21 COMPENSATION 2,82,179* Source: DGCIS Prime Minister Narendra Modi addresses the media on the first day of the Monsoon Session of Parliament; Vice-President M Venkaiah Naidu (right) arrives at the House complex 1,00,000 At $60 bn, exports from the three job-intensive sectors constituted 21% of merchandise exports in FY21 A STORMY START 1,65,302 THE UNEMPLOYMENT rate fell to a 6-month low of 5.98% for the week ended July 18 after inching up to 7.64% in the previous week, reports fe Bureau in New Delhi. In the week ended July 18, the joblessness rate fell in both urban and rural areas to 7.9% and 5.1% from 8.9% and 7.06%, showed CMIE data. FIRMS IN TIRUPUR, India’s largestgarmenthub,areoperatingwithonlyabout60%oftheir usualworkforce.InSurat,which houses some 6,000 diamondcutting units, about 4,00,000 migrantworkersandartisansor 40% of the industry’s labour force, haven’t yet returned to work since Holi.Fabric production in textile centres of Surat hub has crashed by a fourth to threecroremetresaday.Leather unitsinChennaifaceupto20% drop in labourparticipation. Export hubs of key labourintensive industries, already strugglingtocopewithaliquiditysqueeze,arefacingashortage of workers, as most migrant labourers keep away just when orders from crucial western markets start to pourin. The shortage — in the range FE BUREAU New Delhi, July 19 STEEP FALL 85,519 Joblessness rate falls to six-month low of 5.98% NCLAT stays Vedanta takeover of Videocon 62,611 41,146 95,081 69,275 95,444 THE CENTRE on Monday eased stock holding limits on pulses, imposed on July 2, after traders protested last Friday staying away from the buying-selling activities in mandis across the country demanding withdrawal of the order, reports fe Bureau in New Delhi. NAYAN DAVE & BANIKINKAR PATTANAYAK Surat/New Delhi, July 19 Leather & products IN THE NEWS Centre eases stock limits on pulses PALTRY PAYOUT Export hubs face worker shortage Gem & jewellery A RED initiative appears in today’s edition of Financial Express. This page is an initiative of the marketing solutions team of The Indian Express Group and contains content paid for by advertisers. This page should be read as an advertisement. LABOUR PAINS Textiles & garments NEW ROADS OF EDUCATION FY18 FY19 FY20 FY21 FY22E ^Given the 14% annual growth in S-GST revenue guaranteed to states; *includes back-to-back loans disbursed to states of `1.1 lakh cr, `5,500 cr released separately and dues of `81,179 cr, #actual requirement could be much higher. widening of the RBI-facilitated special borrowing window under which the Centre raises low-costloanstobridgeayawning shortfall beingwitnessed in the designated cess kitty. Continued on Page 2 Costly crude: In talks with suppliers, says Centre FE BUREAU New Delhi, July 19 THE GOVERNMENT HAS been taking up the issue of high crude oil prices bilaterally with oil-producing countries and with the Organization of Petroleum Exporting Countries (Opec), minister of state for petroleum and natural gas RameswarTeli said on Monday. The price of Indian basket of crude was $74.3 per barrelonMonday,upfrom$50 per barrel in end-December, supported by global demand recovery and voluntary production cuts until July-end from major oil exporting nations. ■ Detailed report on Page 2 THE NATIONAL COMPANY Law Appellate Tribunal (NCLAT) on Mondaystayed the Vedanta Group's winning bid for the bankrupt Videocon Industriesonanappealfiledby dissenting creditors, Bank of Maharashtra and IFCI. Both thelenderswereunhappywith the value being realised through the resolution plan. “Considering the observations of the adjudicating authority (NCLT) and the submissions made by the learned seniorcounselforappellantsin both these appeals and the grounds raised in these appeals, and considering the exceptional facts of present matter the impugned order is stayed till the next date and status quo ante as before passing of the impugned order is directed to be maintained,” a two-member NCLAT bench, headed by acting chairperson Videocon Industries and its 12 group companies: ■ Total claim of the creditors: `71,433.75 cr ■ Admitted claim: `64,838.63 cr Haircut: 95.85% ■ Twin Star’s resolution plan: ` `2,962.02 cr ` justice AIS Cheema,said. The matter will be next taken up on September 7 and till then the company will continue to be managed by the interimresolutionprofessional. Continued on Page 2 Global cues FE BUREAU Markets take a tumble Markets on Monday posted their biggest drop in more than two months as a global selloff and lacklustre corporate results sapped risk appetite. Sensex tumbled 586.66 points to close at 52,553.40, while Nifty slumped 171 points to 15,752.40. 52,950 Sensex Intra-day, July 19 52,800 52,650 52,606.99 52,553.40 52,500 52,350 52,200 Previous close: 53,140.06 Open Close ● NON-COMPLIANCE Sebi, DRI probing Adani firms, says govt FE BUREAU New Delhi, July 19 SOMEADANI GROUP companies are under the scanner of the Securities and Exchange Board of India (Sebi) and the Directorate of Revenue Intelligence (DRI), Parliament was told on Monday. TheAdaniEnterprisesstock closed at `1,380.55 on the BSE, down 1.01% from the previous close. “Sebi is investigating some Adani Group companies with regard to compliance with Sebi regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of Companies under laws administered by it,” Union minister of state for finance Pankaj Chaudhary informed the Lok Sabha. He was responding to a question whether certain FPIs and/or Adani entities are under investigation various agencies/regulators. Commenting on the issue, an Adani Group spokesperson said the conglomerate has always been compliant with Sebi regulations and it hasn’t received any request from the market regulator recently. On the DRI probe, the spokesperson said Adani Power was show-caused five years ago but the investigating agency had found “no over-valuation of equipment” and the matter is before the appellate tribunal. Continued on Page 13 HYDERABAD
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