OPINION, P6 ECONOMY, P2 MUKESH BUTANI & KINSHUK JHA Taxpayers’ Charter enforceability regime needs more teeth COMPANIES, P4 EDITORIAL STEALTH PROTECTIONISM STRONG PACE Eicher, etc, shows small shareholders' voice surer now, but India must give them more powers Goyal asks industry to flag non-tariff barriers in exports Hindalco continues to see strong demand across all segments NEW DELHI, TUESDAY, AUGUST 24, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 150, 28 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: 55,555.79 ▲ 226.47 NIFTY: 16,496.45 ▲ 45.95 NIKKEI 225: 27,494.24 ▲ 480.99 HANG SENG: 25,109.59 ▲ 259.87 `/$: 74.21 ▲ 0.18 `/€: 87.02 ▼ 0.17 BRENT: $67.28 ▲ $2.10 GOLD: `47,199 ▲ `121 HDFC Bank is aiming to hit the credit card issuance run rate it had just prior to the embargo issued by the Reserve Bank of India (RBI), reports fe Bureau in Mumbai. It plans to recover its market share in cards outstanding over the next three-four months, the bank said on Monday. Parag Rao, group head — payments, consumer finance, digital banking & IT, HDFC Bank, said that in November 2020, the bank had hit a run rate of incremental issuance of over three lakh cards per month. PAGE 9 Continued on Page 2 GUJARAT-BASEDAMNS INDIA is planning to bid for stateowned steelmaker Rashtriya Ispat Nigam (RINL),which has alreadyattracted the interest of domestic giant Tata Steel, according to a source. RINL is a special steel making company based in Visakhapatnam, Andhra Pradesh. The company, under the administrative control of the steel ministry,operates a 7.3 million tonne steel plant in the state. “AMNS India is exploring this option,” the source ■ The RINL is a special steel making company based in Visakhapatn am, Andhra Pradesh company operates a 7.3 million tonne steel plant in the state ■ Acquisition will give Tata Steel more access to the South East Asian markets repliedtothequestionthatifthe companywouldbeinterestedin disinvestment-bound RINL.An emailquerysenttoAMNSIndia remained unanswered. Tata Steel CEO and MD TV Narendran has recently said On January 27, CCEA had given 'in-principle approval for 100% disinvestment of govt stake in RINL his company is interested in acquiring RINL, as the plant is strategicallylocatedontheeastern coast, and will give it more access to the Southeast Asian markets, where the company alreadyhas a presence. On January 27, the Cabinet CommitteeonEconomicAffairs hadgiven‘in-principleapproval for100%disinvestmentofgovernment stake in RINL, along withstakeinarms/JVsviastrategic disinvestment byway of privatisation. Continued on Page 2 FE BUREAU Business resumption holds ground at pre-Covid high The Nomura India Business Resumption Index stayed above its pre-pandemic level for a second week, rising to 100.8 for the week ending 22 August vs 100.1 previously. A third wave risk remains, though August hasn’t seen a flare-up 110 100 90 80 70 60 50 40 Nomura India Business Resumption Index (NIBRI) 96.6 100.8 98.1 88.5 91 69.1 68 60.4 Source: Nomura Global Economics Aug 22 ABHISHEK SONKAR New Delhi, August 23 Going steady Jul 11 After Tata Steel,Arcelor eyes RINL Continued on Page 2 Aug 1 ● STAKE SALE short-listed from highest to lowest on basis of committed cumulative incremental investment Jun 20 The keyfeature of the NMP, prepared by the Niti Aayog, is that it involves monetisation of rights, not ownership. The assets have to be returned to the government or the public agencyconcerned at the end of the transaction life. The gov- May 9 through “structured contractualpartnershipasagainst privatisation or slump sale of assets”, will include highway stretches, power transmission networks, freight corridors, airports, ports, gas pipelines and warehousing facilities. ■ Firms to be firms can be selected if budgetary outlay is exhausted. In thatcase,companieswhichhave committed a bigger amount of investmentwill be selected. The scheme,with an outlay of `12,195 crore, offers incentives in the range between 4% and 7% fordifferent categories and tenures. For the MSMEs, a 1%higherincentiveisproposed inyear1,year2 andyear3. May 30 — NIRMALA SITHARAMAN, FINANCE MINISTER applications in non-MSME category, at least three applicantswill be eligible domestic companies Apr 18 Asset monetisation will lead to value unlocking. Ownership of assets to remain with the government, there will be a mandatory hand-back. ■ Ofthe 10 Mar 7 `15,000 cr NMP is National Monetisation Pipeline; NIP is National Infrastructure Pipeline. approvals to 10 eligible applications each in the MSME and non-MSME categories Mar 28 Stadiums `11,450 cr ■ DoTwill grant Feb 14 `22,504 cr Urban real estate Jan 3 Product pipeline/others `12,828 cr Jan 24 `24,462 cr Dec 13 Ports Nov 1 Natural gas pipelines Nov 22 Will regain credit card volume mkt share in 3-4 months: HDFC Bank Continued on Page 2 Aviation `20,782 cr Oct 11 A GOVERNMENT-BACKED panel has firmed up a road map to double manufacturing exports over the next five years, reduce imports by two-thirds in select sectors and drive up annual domestic consumption growth to about 9% from roughly 7% in a normal year under the Atmanirbhar Bharat initiative, reports Banikinkar Pattanayak in New Delhi. It has said focus on these three critical factors would catalyse incremental domestic value addition of $350-380 billion over the next five years. PAGE 2 `39,832 cr Govt has received 36 applications from global and local firms, including Nokia,Jabil, Cisco, Flex, Foxconn, among others THE DEPARTMENT OF telecommunications (DoT) will soon announce the list of companies selected for the production-linked incentive (PLI) scheme for the manufacture of telecom equipment. The government has received 36 applications from global and local firms, including Nokia, Jabil, Cisco,Flex,Foxconnamongothers.“The processing has already beendoneandthenamesof the selected firms will be announcedinacoupleofweeks,”said an official aware of details. The DoT will grant approvals to 10 eligible applications each in the MSME and non-MSME categories. Of the 10 applications in non-MSME category, at least three applicants will be eligible domestic companies. The applications will be short-listed from highest to lowest on the basis of committed cumulative incremental investment during the scheme period. However,the guidelines say that if the government is left with the budgetary allocation, more companies can be selected. Also, a fewer number of Sep 20 Atmanirbhar Bharat: Panel targets to double exports, slash imports Power generation `28,747 cr ~`6 lakh crore KIRAN RATHEE New Delhi, August 23 Aug 30 `45,200 cr Mining Total NMP Selected firms for PLI to be announced soon Jul 19 Power transmission `28,900 cr Jun 7 QuickPicks ernment feels that since brownfield,‘de-risked’ assets are to be offered, private investors and global patient capital would be incentivised to invest in them. THE COMPETITION COMMISSION of India (CCI) on Monday imposed a penalty of `200 crore on Maruti Suzuki for restricting discounts offered by its dealers and directed the country's largest car maker to cease and desist from indulging in unfair business practices. Passing an order, the fair trade regulator also flagged practices like appointing‘Mystery Shopping Agencies’ and preparing ‘Mystery Audit Reports’ as part of enforcing the company’s discount control policy. The watchdog slapped the fine of `200 crore as it found that Maruti Suzuki India (MSIL) indulged in anti-competitive conduct of Resale Price Maintenance (RPM) in the passengervehicle segment by way of implementing discount control policy vis-a-vis dealers,an official release said on Monday. `1,52,496 cr FE BUREAU New Delhi, August 23 THENARENDRAMODIgovernment on Monday unveiled a NationalMonetisationPipeline (NMP), seeking to generate upfront revenues of `6 lakh crore in the four years starting FY22, out of operational infrastructureprojects,undervarious innovative long-term lease plans that involve minimal ceding of government’s ownership of the assets.The move is in step with a plan to revert to the path of fiscal consolidation without anylapse of time and create the fiscal heft to finance the `111lakh-crore National Infrastructure Pipeline and other capitalintensiveventures.Theideaisto crowdinprivateinvestmentsin infrastructure by making matching public fundsavailable. The assets to be monetised Warehousing PRESS TRUST OF INDIA New Delhi, August 23 TELECOM EQUIPMENT Aug 9 Railways Telecom `35,100 cr Jun 28 `1,60,200 cr May 17 JIO HAS ADDED 5.46 million wireless users in June, the highest for five straight months, reports Kiran Rathee in New Delhi. Airtel added 3.81 million and VIL continues to lose subscribers. Roads Apr 5 Jio adds maximum users for five straight months Pipeline of brownfield assets unveiled for FY22-25; CPSEs to use the proceeds to invest in greenfield ventures NMP period: Co-terminus with NIP, 4 years (FY 22-25) CCI slaps `200-cr fine on Maruti Suzuki Apr 26 THE EXPERT PANEL for UCBs constituted by the RBI has recommended a tier-based regulatory structure for such lenders, reports fe Bureau in Mumbai. It has proposed that UCBs be divided into four tiers on the basis of deposit sizes, and laid out a road map for UCBs to transition into SFBs and universal banks. No ownership transfer under `6L-cr asset monetisation plan Mar 15 RBI panel road map for UCBs to be on par with SFBs ● UNFAIR PRACTICES Feb 2 MAKING HER DISPLEASURE over the glitches in the I-T efiling portal known to Infosys MD and CEO Salil Parekh, finance minister Nirmala Sitharaman told him to fix issues latest by September 15, reports fe Bureau in New Delhi. INFRA PUSH Feb 23 IN THE NEWS FM asks Infosys to fix ITportal glitches by September 15 Eicher board reappoints Siddhartha Lal as MD PRESS TRUST OF INDIA New Delhi, August 23 EICHER MOTORS ON Monday said it has“unanimously” decided to reappoint Siddhartha Lal as managing director of the company with effect from May 1,2021,with changes in his remuneration package,aweek afterthe company’s shareholders rejected the proposal. The company said that the board of directors on Monday discussed the outcome of the 39th AGM held on August 17, 2021. The matter pertaining to the re-appointment of Lal as New Delhi managing director and the remuneration proposal was discussed comprehensively, and the Board unanimously decided to re-appoint him as managing director,with effect from May 1, 2021, Eicher Motors said in a statement. Continued on Page 13
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