OPINION, P6 ECONOMY, P3 A GHOSH & K GANESAN India must switch to efficiency-based coal-power despatch INTERNATIONAL, P8 EDITORIAL `440-CRORE PROPERTIES GLOBAL RECOGNITION Not cutting fuel levies because non-tax receipts might fall short of targets is unfair Court allows return of Nirav Modi's assets seized by ED to PNB US President Biden says Taliban now in 'existential crisis' NEW DELHI, FRIDAY, AUGUST 20, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 147, 22 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*: 55,629.49 ▼ 162.78 NIFTY*: 16,568.85 ▼ 45.75 NIKKEI 225: 27,281.17 ▼ 304.74 HANG SENG: 25,316.33 ▼ 550.68 `/$*: 74.25 ▲ 0.10 `/€*: 87.00 ▲ 0.53 BRENT: $66.00 ▼ $2.23 GOLD: `47,133 <—> `0.00 *As on Aug 18 TALKS CONTINUE IN THE NEWS Ujjivan SFB MD & CEO Nitin Chugh resigns ● OFFSHORE ROUTE Limited trade pact with US deferred UJJIVAN SMALL Finance Bank MD and CEO Nitin Chugh has resigned from the bank and his tenure will come to an end on September 30, reports PTI. The bank has received a letter, dated August 18, from Chugh tendering his resignation from the position of the bank's managing director and CEO. Working with US on market access issues, says Goyal; deal with Australia soon WHAT GOYAL SAYS Trade is a two-way affair; have to open up our markets too THE US HAS hinted that it no longer wants a “limited” trade deal with India that was negotiated for months under the Trump administration and was to cover products with annual bilateral trade of about $13 billion. Addressing top representativesofoveradozenexportpromotion councils and others at a meeting in Mumbai on Thursday, commerce and industry ministerPiyushGoyalsaid:“The TO INCREASE recovery from its 43 producing fields across Gujarat, Assam, Tamil Nadu and Andhra Pradesh, staterun ONGC on Thursday invited offers seeking partners to boost output from its marginal nomination fields, reports fe Bureau in New Delhi. Paid licence fee dues for first quarter: Voda Idea Have urged finmin to set up a panel to look at various RoDTEP issues Going forward, there can be a relook at various issues Australia has agreed on an early-harvest deal; this may be followed by pactswith the UK and the UAE BANIKINKAR PATTANAYAK New Delhi, August 19 ONGC seeks tie-ups to raise output from 43 oil, gas fields HDFC Bank raises $1 bn in maiden AT-1 bond issue; pricing at 3.7% Adealwith the EU may take some time to fructify Targeting $2-trn exports (goods and services) by 2030 Steel, pharma & chemicals had to be left out ofRoDTEPdue to fund constraints this year US, as of now, has kind of indicated they are not looking for a new trade deal. But we look at working with them on market accessissuesonbothsides.That willalsobeabigopportunityfor ourexport sector.” HDFC BANK ON Thursday said it has raised $1 billion in its maiden AT-1 bond issue from global investors at a tight pricing, in a deal that will help allayfears overthe capital raising instrument for lenders in the country,reports PTI. The largest private sector lender managed to get a final pricing of 3.7% on the coupon against an initial guidance of 4.125%, while the final subscriptionsstoodat$3.2billion, arrangers to the issue said. Detailed report on Page 11 ROAD AHEAD Cars24 to raise $350 million from SoftBank, others; IPO in the works SARITHA RAI August 19 DSTGlobal, Falcon Edge Capital to be part of round CARS24 SERVICES,THE country’sbiggestonlinemarketplace for used automobiles,is closing in on a deal to raise about $350 million from DST Global, SoftBank Group Corp and other investors,according to a person familiarwith the matter. The fundraising would also includeFalconEdgeCapitaland value the start-up at close to $2 billion, said the person, asking not to be named.The funding now envisioned is larger than the $200-250 million range Fundraising to value Cars24 at nearly $2 bn Bloomberg News reported earlier. The round is expected to close in the next couple of weeks, the person said, though the details could still change. Cars24isstartingconversations about an initial public The talks on market access issueswill likelycovernon-tariffbarriers,mutualrecognition agreements and quality standards of imported products. Continued on Page 2 Incentive for mills exporting sugar, diversion to ethanol THE CENTRE on Thursday announced an incentive for sugar mills in the form of an additionaldomesticsalesquotatothosethat export sugar and divert the commodity towardsethanolmaking,inthenew2021-22 season starting October,reports PTI. Sugar mills have also been asked to take advantage of firm global sugar prices and plan export of raw sugar in advance in the VODAFONE IDEA (VIL) on Thursday said it has paid licence fee dues for the first quarter of 2021-22, reports PTI. The comment came after a report that the troubled telco fell `150 crore short on payment of licence fee for the June quarter. newseason(October-September),itsaid.This indicates that the government is unlikely to extend the export subsidy from the new season,asitwouldbeeasierfordomesticmillsto sellsugarabroadinviewoffirmglobalprices. Currently, the government fixes a monthly quota for the sale of sugar in the domestic market. ■ Report on Page 2 EYE ON MARGINS Special Feature ‘D2C model not sustainable for FMCG brands’ Mayank Shah of Parle Products on premium snacks seeing high uptake amid the pandemic, and the rising contribution of e-commerce to the overall FMCG market ■ BrandWagon, P7 QuickPicks India Ratings cuts FY22 growth forecast to 9.4% from 9.6% INDIA RATINGS and Research (Ind-Ra) on Thursday trimmed its growth forecast for India to 9.4% for FY22 from 9.6% announced earlier, and expected real GDP to have expanded at 15.3% in the June quarter, driven by a favourable base, reports fe Bureau in New Delhi. The agency lowered its forecast as it believed that the vaccination drive wouldn’t cover the entire adult population in the country by December 2021. PAGE 2 Jet staff move NCLAT seeking stay on Jalan Kalrock plan JETAIRWAYS' cabin crew and ground staff have challenged the Jalan Kalrock consortium's resolution plan, which was approved by the National Company Law Tribunal (NCLT) in June, flagging concerns about pending salaries and retirement benefits, reports PTI. In their petition filed before the National Company Law Appellate Tribunal (NCLAT), the Jet Airways Cabin Crew Association and Bhartiya Kamgar Sena have submitted that dues of all workmen of the airline were not included as part of the Corporate Insolvency Resolution Process (CIRP) cost. PAGE 4 OMCs hold fuel prices even as crude softens ANUPAM CHATTERJEE New Delhi, August 19 THOUGH STATE-RUN oil marketing companies (OMCs) had consistently and promptly raised retail prices of petrol and diesel since early May this year to‘matchtheriseinglobalcrude rates’, they have been less than responsive to the softening of crude oil since mid-July. Assumptions that the crude prices have yet to stabilise and may start swinging anytime soon is what OMCs are apparently guided by, but a delayed response to fall in crude price is seen as untenable, given the heavy burden on retail consumers on account of the hefty taxes on these products.Direct andsecond-roundeffectsofthe high fuel prices are fuelling inflation in an economy struggling to come out of thewoods. Thebasepricechargedbythe OMCs to the dealer,and hence, the retail motor fuel prices Oil prices 105 Retail price in Delhi (`/litre) Petrol 95 83.71 85 75 89.47 Diesel 73.87 68.91 65 Aug 18 55 51 45 101.84 Jan 1, 2021 Indian basket crude ($/bbl) Aug 19, 2021 Source: Bloomberg touched all-time high levels across the country on July 17 and have since remained at roughlythe same levels. Continued on Page 2 Emcure Pharma eyes `5,000-cr IPO EMCURE PHARMACEUTICALS has filed draft papers with Sebi for an initial public offering,which a source said could be worth up to `5000 crore, reports Reuters. Emcure’sofferingwillconsist ofafreshissueofsharesworth `1,100 crore and a sale of 18.2 million shares by existing shareholders, including US private equity firm Bain Capital,a filing showed. ■ Report on Page 9 COVID HURDLES MFIs look at new ways to boost collections SHRITAMA BOSE Mumbai, August 19 BANKS AND NON-BANK lenders engaged in the microfinance space have started to put in place hybrid models of collections from borrowers in the wake of the second wave of the pandemic.They are trying to use a combination of physical and digital modes of collections in order to avoid disruptions in the process. Traditionally, repayments in the microfinance segment were made through group meetings as the core borrower base is more comfortable making cash payments. While the loanmoratoriumprecludedtheneed ■ Lenders teaming up with fintech players and payment gateway companies to digitise collections ■ The industry sees UPI, Aadhaar Pay and NACH as possible collection channels ■ Share ofdigital collections may take time to inch up as itwould require behavioural changes forcollections in the firstwave of the pandemic, the collection effort became a majorchallengeduring the second wave in April-May this year. Harish Prasad, head of banking - India,FIS,said ithas beenanongoing process for banks engaged in microfinance to adopt a multi-mode model for collections.“They are now exploring ways of making sure collections can be made through digital channels like UPI when cash collections are not possible,”Prasad said. Lenders have now begun to team upwith fintech players and payment gateway companies to digitise some aspects of the collection process.The aim here is to ensure repayments are not hurt even when group meetings cannot be held or agents cannot go out for collections. Continued on Page 2 New Delhi Round expected to close in next couple of weeks The start-up aims to go public in 18-24 months offering and aims to go public in 18 to 24 months,the person said. India’s IPO market has surged and is on track for a record year. Continued on Page 2
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