ECONOMY, P2 GOVT NOTIFICATION COMPANIES, P4 RBI, Irdai to vet FDI in insurers promoted by banks INTERNATIONAL, P8 HIGH PRICES FOR INDIAN SUBCONTINENT MUSK MOVE Centre cuts basic customs duty on crude, refined soyoil, sunflower oil till September 30 Viacom18 gets digital, TV rights for top-tier Italian football league Tesla likely to launch humanoid robot prototype next year NEW DELHI, SATURDAY, AUGUST 21, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL. XLVII NO. 148, 18 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 READ TO LEAD SENSEX: 55,329.32 ▼ 300.17 NIFTY: 16,450.50 ▼ 118.35 NIKKEI 225: 27,013.25 ▼ 267.92 HANG SENG: 24,849.72 ▼ 466.61 `/$: 74.39 ▼ 0.15 `/€: 86.85 ▲ 0.15 BRENT: $65.18 ▼ $1.27 GOLD: `47,078 ▼ `55 IN THE NEWS EPFO adds 12.83L members in June EPFO RECORDED net new enrolments of 12.83 lakh in June, reports PTI. The provisional payroll data of EPFO (Employees' Provident Fund Organisation) released on Friday highlights a growing trend with 12.83 lakh net payroll additions during June 2021, a labour ministry statement said. CIL capex zooms over twofold to `1,840 cr in Q1 AS COAL India (CIL) steps up investment, its growth in capital expenditure during the first quarter of the fiscal more than doubled at 118% to `1,840 crore from `844 crore during the same quarter last fiscal, reports fe Bureau in Kolkata. Investments via P-notes touch 40-month high INVESTMENTS IN the Indian capital markets through participatory notes (P-notes) rose to `1.02 lakh crore till July end, making it the highest level in last 40 months, reports PTI. This also marks the fourth consecutive monthly growth. $1-BN VALUATION MPC MINUTES Economy struggling, needs support: Das FE BUREAU Mumbai, August 20 RESERVE BANK OF India (RBI) governor Shaktikanta Das has expressedconcernstherecovery in the economy isn’t gathering steam.“The economy is struggling to regain the momentum thathadgatheredinthesecond half of 2020-21. There is still considerable slack in the economy.Domestic demand is picking up, but at a slow pace,” Das observed in the minutes of the MPC’s (Monetary Policy Committee)August meeting. The governor is of the view the economystill requires support in terms of maintaining congenial financial conditions and fiscal boosters because a solidly entrenched increase in aggregate demand is yet to take shape. The governor noted: “At such a critical juncture, can we really pull the rug and let the economy tumble?” Das believes many of the "There is still considerable slack in the economy. Domestic demand is picking up, but at a slow pace." A health worker checks the body temperature of a traveller as a precaution against the coronavirus before allowing them to proceed, at a railway station in Mumbai on Friday currentpriceshocksarelikelyto be one-off or transitory.“Weak demand conditions and low pricing power are limiting the extent of their pass-through to output prices,”he said. Continued on Page 2 reports PTI. India is the first country for Facebook where this programme is getting rolledout.Theprogrammeis open to businesses registered across 200 towns and cities of India. ■ Report on Page 4 ● FRIDAY FALL Special Features Can FY22 be the tipping point for electric scooters? Electric scooters available in India include Ola S1 and S1 Pro, Simple One, TVS iQube, Bajaj Chetak, Ather 450X, PureEV Epluto, etc. Many are priced under `1 lakh after FAME II subsidy. ■ Motobahn, P7 Benchmarks tumble on weak global cues; rupee slumps 15 p Sensex (Intra-day, Aug 20) 55,650 55,329.32 55,500 Power Grid’s performance in Q1FY22 met estimates Asset capitalisation of `56 bn helped PAT; visibility on the earnings growth trajectory is a positive; valuations are attractive; TP raised to `205 from `195; ‘Buy’ rating retained ■ Investor, P7 QuickPicks Yields on short-tenor debt papers fall on surplus liquidity YIELDS ON short-term debt instruments such as Treasury bills and commercial papers fell sharply over the week as liquidity in the system remained in surplus even after the central bank conducted variable rate reverse repo auction to absorb excess liquidity, reports Manish M Suvarna in Mumbai. Since August 10, yields on commercial papers issued by NBFCs and manufacturing companies maturing in three months fell by 10-20 bps and that on Treasury bills fell by 5-6 bps across maturities. PAGE 6 Ujjivan SFB likely to elevate Carol Furtado as interim MD & CEO UJJIVAN SMALL Finance Bank is scheduled to hold a board meeting on August 25 to appoint an officer on special duty (OSD) to oversee the bank as Nitin Chugh has tendered his resignation from the post of the MD and CEO, reports Mithun Dasgupta in Kolkata. “We have to appoint a person temporarily. First, the person will be appointed as OSD," founder Samit Ghosh said. He added that Carol Furtado is the top candidate to become the interim CEO of the bank. PAGE 6 Mahindra Holidays looking to acquire more hotels in India MAHINDRA HOLIDAYS & Resorts India is looking to acquire more hotels as Indians emerging from months of pandemic-induced lockdowns eagerly head out for local leisure travel, reports Bloomberg. “We have a very good pipeline of properties that we’re looking at for acquisitions,” as well as leasing opportunities, said chief executive officer Kavinder Singh in an interview to Bloomberg Television Friday. “There is revenge travel.” PAGE 5 FE BUREAU New Delhi, August 20 —SHAKTIKANTA DAS, RBI GOVERNOR, IN MPC MINUTES FB to offer loans to small biz in India FACEBOOK INDIAonFriday launched ‘Small Business LoansInitiative’tohelpsmall and medium businesses (SMBs) that advertise on its platform to get quick access to credit through independent lending partners, With fresh $105-m fundraise, Zetwerk joins unicorn club 55,350 55,200 55,050 54,900 55,159.13 Previous close : 55,629.49 Open Close PRESS TRUST OF INDIA Mumbai, August 20 EQUITY INDICES SPIRALLED lower for the second straight session on Friday, mirroring a global selloff as rising Delta cases and fears of earlierthan-expected Fed tapering sparked a broad retreat from riskier assets. Adepreciatingrupee,which slumped 15 paise against the dollar,added to the woes. The 30-share BSE Sensex slumped 300.17 points or 0.54% to close at 55,329.32. Similarly, the broader NSE Nifty tumbled 118.35 points or 0.71% to 16,450.50. Tata Steel was the top loser in the Sensex pack, plunging 8.27%, followed by SBI, Dr Reddy’s, Sun Pharma, Kotak Bank,L&T and Bajaj Auto. Continued on Page 2 SHOT IN THE ARM Zydus Cadila’s 3-dose vaccine gets EUA ZyCoV-D, the world’s first DNA shot against Covid-19, can be given to children above 12 Zydus Cadila aims to make 100-120 m doses of ZyCoV-D annually and has already begun stockpiling the vaccine REUTERS Bengaluru, August 20 THE DRUG REGULATOR has grantedemergencyuseapproval (EUA) for Zydus Cadila’s Covid19vaccine,theworld’sfirstDNA shot against the coronavirus,in adults and children aged 12 yearsandabove. The approval is expected to provide a boost to India’s goal to inoculate all eligible adults by December,and will provide the first shot for those under The three-dose vaccine was developed by the firm in partnership with the Department of Biotechnology The shot is administered using a needle-free applicator as opposed to traditional syringes It said in July the vaccine was effective against the new coronavirus mutants, especially the Delta variant 18, as the country still strugglestocontainthevirusspread in some states. The vaccine, ZyCoV-D, uses a section of genetic material from the virus that gives instructions as either DNA or RNA to make the specific pro- tein that the immune system recognises and responds to. Unlike most Covid-19 vaccines,which need two doses or even a single dose, ZyCoV-D is administered in three doses. Continued on Page 2 J&J seeks India nod for Covid vaccine trial on adolescents JOHNSON &JOHNSON (J&J)onFridaysaidit has submitted an application to the Indian drugregulatortoconductastudyofitsCovid19 vaccine in adolescents aged 12-17 years, reports PTI. The US-based pharmaceutical company noted that it is committed to facilitating globalequitableaccesstoitsCovid-19vaccine and recognise the unmet needs of children. “On August 17, 2021, we submitted an application to the Central Drugs Standard Control Organisation (CDSCO) to conduct a study of the Johnson & Johnson Covid-19 vaccine in India in adolescents aged 12-17 years,” a J&J India spokesperson said in a statement. ■ Report on Page 4 Poor spell FE BUREAU Monsoon rains lose pace in August Seasonal showers have lost steam in August, having recorded a 28% deficit so far this month. While water reserves at the All-India level remained just shy of the normal 10-year average, four out of five regions (barring the southern belt) had lower reserves than the benchmark levels. However, thanks to good rainfall earlier in the season, crop sowing was down by only 2% y-o-y till August 13. Monsoon rainfall Reservoir level (June 1-Aug 20, % chg from LPA) 82 East/ North-east -11 Northwest Central India 72 -11 47 45 53 53 58 56 67 59 61 62 -10 South peninsula All-India Aug 19, 2021 Normal level^ (% of capacity) 4 North -8 East West Central South ^10-yr average; Source: Central Water Commission Source: IMD AllIndia TECH-BASED, B2B MANUFACTURING platform Zetwerk is raising a fresh $105 million (`782.75 crore) from a clutch of investors led by D1 Capital Partners, according to the company’s filings with the RoC made earlier this week. The investment, part of the company’s Series E financial round,is also being backed by Lightspeed Venture Partners, Greenoaks Capital and Accel. The total size of the round could be bigger and is estimated to be around $150 million, according to certain mediareports.Thefundraise is understood to be valuing the company at over $1 billion, adding it to the unicorn club. Zetwerk did not respond to FE’s queries. The latest funding comes a little over six months after the Bengaluru-based start-up raised about $120 million from investors at an estimatedvaluation of around $600 million. Founded in May 2018, Zetwerk runs a tech-backed global manufacturing network.Thecompanyisapartner ■ New funding comes a little over six months after co raised $120 million from investors ■ Revenue from operations increased to `949 crore in FY21 from `360 crore in FY20 Company works with more than 2,000 suppliers to leading players in precision parts, capital goods and consumer goods categories and offers a full spectrum of manufacturing services ranging from custom-made components to mass production and supply chain management. It works with more than 2,000 suppliers and has made on-time execution and delivery of more than 1,000 projects in over 15 countries. Continued on Page 2 GROWTH PLANS GMR to invest `20K cr for old & new airports PRESS TRUST OF INDIA Hyderabad, August 20 GMR GROUP IS currently investing `20,000 crore to expandtheexistingairportsand developing new aerodromes, GM Rao, chairman of the infra major,has said.“Airport Development and Construction: GMR Group has set benchmarksfordevelopmentofworld class Airport infrastructure... Your company is currently investing approximately `20,000 crore to expand the existing Airports and develop new airports,” he said in the group’s latest annual report. GMR has 4 operating airports — Indira Gandhi International Airport, Delhi, Rajiv Gandhi International Airport, Hyderabad,BidarAirportatKarnataka and Mactan Cebu International Airport in Philippines. Further, two assets, Greenfield AirportsatMopa,GoaandCrete GMR's operating airports Indira Gandhi International Airport, Delhi Rajiv Gandhi International Airport, Hyderabad BidarAirport in Karnataka Mactan Cebu International Airport in Philippines Airports under construction Greenfield Airports at Mopa, Goa Crete International Airport in Greece InternationalAirportinGreece, are underconstruction. Continued on Page 2 Positive CreditWatch for Tata Group: S&P S&P GLOBAL RATINGS on Friday placed the ratings on TataGroupfirms—TataSteel, TataMotors,ABJAInvestment Co Pte Ltd,TML Holdings Pte Ltd and Jaguar Land Rover Automotive Plc — on CreditWatch with positive implications,whichimpliesapossible revision in ratings, reports PTI.“TheCreditWatchsignals we could potentially reassess the relationship between theseTataGroupentitiesand the holding company Tata Sons, the potential for extraordinary support from Tata Sons, and therefore the ratings on these group entities,” it said. ■ Page 4 MONOPOLISTIC BEHAVIOUR FTC says Facebook‘bought & buried’rivals in renewed antitrust fight DIANE BARTZ & NANDITA BOSE Washington, August 20 THE US FEDERALTrade Commission refreshed its antitrust case against Facebook on Thursday, adding more detail on the accusation the social media company crushed or bought rivals and once again asking a judge to force the social media giant to sell Instagram andWhatsApp. At 80 pages, the new complaint is significantly longer than the original one and includes additional data intended to support the FTC’s contention that Facebook is a monopolist. An expanded portion of the complaint argues that Facebook dominates the US personal social networking market with more than 65% of monthly active users since 2012. The FTC voted 3-2 along partylines to file the amended lawsuit and denied Facebook’s request that agency head Lina At 80 pages, FTC's latest complaint is significantly longer than the original one TAKING AIM It includes additional data to support FTC's contention that Facebook is a monopolist Facebook said it would continue to fight the lawsuit The agency also repeated its request that a court order Facebook to sell Instagram and WhatsApp Khan be recused. Khan participated in filing the new complaint. The agency also repeated its request that a court order Facebook to sell Instagram, which it bought in 2012 for $1 billion, and WhatsApp, which it bought in 2014 for $19 billion. The FTC accused Facebook of an “illegal buy or bury scheme to crush competition” in the headline of the press release on its complaint. Facebook said it would New Delhi continue to fight the lawsuit. “It is unfortunate that despite the court’s dismissal of the complaint and conclusion that it lacked the basis fora claim,the FTC has chosen to continue this meritless lawsuit,” a company spokesman said. “Our acquisitions of Instagram and WhatsApp were reviewed and cleared many years ago, and our platform policies were lawful.” Continued on Page 2
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