OPINION, P6 COMPANIES, P4 EDITORIAL Maruti’s dealerdiscount caps are anti-competitive MARIWALA-SPEAK TECH RECRUITMENT Road to recovery still fraught; govt must spend to create the jobs that India needs N KAUR UBEROI & M GEORGE INTERNATIONAL, P8 ‘I am not the kind who wants to sell and monetise a business’ Amazon CEO unveils 55K jobs in first hiring push under his watch NEW DELHI, THURSDAY, SEPTEMBER 2, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 158, 24 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: 57,338.21 ▼ 214.18 NIFTY: 17,076.25 ▼ 55.95 NIKKEI 225: 28,451.02 ▲ 361.48 HANG SENG: 26,028.29 ▲ 149.30 `/$: 73.09 ▼ 0.08 `/€: 86.37 ▼ 0.05 BRENT: $71.67 ▲ $0.04 GOLD: `47,094 ▼ `12 FE BUREAU Manufacturing loses momentum in August 70 Manufacturing PMI Services PMI 60 50 30.8 57.7 52.3 52.8 40 45.4 Jul ‘21 30 20 10 12.6 0 May 2020 Jan 2021 Note: Reading below 50 suggests contraction and above it indicates expansiontt Aug 2021 Source: Nikkei; IHS Markit Nothing ear (1): These earbuds are tough to beat At `5,999, Nothing ear (1) earbuds have a sleek, ultramodern design and good sound quality. Noise cancellation is flawless, there’s easy fit for long hours, good call quality and long battery life ■ Gadgets, P7 ● PMFBY Unsettled claims: Not just insurers, defaulting states also at fault INSURERSAREOFTENblamed fordelayedreleaseofcropinsurance amounts to farmers, but the fault also seems to lie with the state governments which default on paying their share of the subsidy on premium, reports Prabhudatta Mishra in New Delhi. According to data gathered by FE, claims worth `2,287 crore remained unpaid to farmers as on August 16 under Pradhan Mantri Fasal BimaYojana,butstateswereyet to release their premium share of `1,879 crore. ■ Page 2 QuickPicks Power producers seek clearance of `3,184-cr dues from MP discoms STATING THAT it is becoming difficult to sustain operations without receiving payments for past dues, independent thermal power producers have written to the head of Madhya Pradesh's state-run power distribution companies (discoms) seeking immediate release of “at least 70% of the outstanding payment”, reports Anupam Chatterjee in New Delhi. According to the Union power ministry’s ‘Praapti’ portal, overdues — pending receivables for 60 days or more — private power plants at July end was at `1,861 crore, up from `515 crore a year ago. PAGE 2 Zerodha gets Sebi’s in-principle nod to launch mutual fund biz BROKING FIRM Zerodha has received in-principle approval from capital markets regulator Sebi to set up an asset management company, its founder and CEO Nithin Kamath said on Wednesday, reports PTI. "So, we just got our in-principle approval for our AMC (MF) license. I guess now comes the hard part," Kamath tweeted. In February last year, Zerodha had applied for a licence to start mutual fund operations. Joblessness on the rise again in August VRISHTI BENIWAL September 1 THE COUNTRY’S JOBLESS rate rose last month due to a hit to hiring activity from the Covid-19 pandemic. Unemployment rose to 8.32% in August from a fourmonth low of 6.95% in July, data from private research firm Centre for Monitoring Indian Economy (CMIE) showed on Wednesday. Aseparate surveyof factory managers by IHS Markit pointed to companies pausing hiring efforts amid a softer growth in sales during the month. “There is some hesitancy in the growth and that’s thereasonweseethisfatiguein employment numbers,” CMIE MD MaheshVyassaidbyphone. “We are still recovering from a sharp fallin employment.” ‘Hesitant’ recovery Job losses rose again last month after some recovery in July Unemployment rate (%) 12 9 6 3 0 Jan Mar May Jul Aug Source: Centre for Monitoring Indian Economy/Bloomberg About a million jobs were lost last month, according to CMIE data, which is based on surveys,and is widely accepted intheabsenceoftimelygovernment data.The job losses were relatively low when compared with April when more than seven million jobs were lost amid the secondviruswave. —BLOOMBERG UPI transactions cross 3.5 bn in August THE VOLUME OF transactions made through the UnifiedPaymentsInterface(UPI) channel stood at 3.55 billion in August, up from 3.24 billioninJuly,reportsfeBureau in Mumbai.Their value rose to `6.39 lakh crore from `6.06 lakh crore in July, National Payments Corporation of India said onWednesday.The market share of UPI has been constantly rising and stood at 80% over the first fourmonths of FY22,up from73%inFY21,according to a report by Motilal Oswal FinancialServices. ■ Page 9 New Delhi « 6.3 M&M Hero MotoCorp 5,68,674 4,31,137 24.2 « 5,555 12,772 29,257 27,405 54,190 53 Tata Motors In fact, automakers had warned in Q1 that theworsening semiconductor shortage will prove to be a big challenge to supplies and will have UNEMPLOYMENT Special Feature 2.3 Hyundai Motor « 8.3 Maruti Suzuki Bajaj Auto 7 35,420 Aug ‘21 July June May April March Feb Jan ’21 Dec Nov ‘20 Rising costs % chg (y-o-y) 1,72,595 45,809 Continued on Page 15 Aug 2021 1,85,879 46,866 Continued on Page 2 FE BUREAU Mumbai, September 1 WHOLESALE AUTO DESPATCHES presented a mixed bag in August, but there were signs of some slowdown in the coming months and subdued sales during the festival season, especially in the passengervehicle (PV) segment. Production cuts by Maruti Suzuki India, the country’s largest passengervehiclemanufacturer,andTataMotorsdue to semiconductor shortage is a key reason. Aug 2020 1,15,325 1,05,775 before, giving the illusion of sharp economic recovery, but itwaslargelydrivenbyadeeply contracted (-24.4%) base. In absolute term, real GDP still trailedthepre-pandemic(June quarterin FY20) level by9.2%. (` crore) (Units) 130 « dropped to 52.3 in August from 55.3 in the previous month; also, average daily eway bill generation in the first 30 days of August was just 2% higher than the level in July. India’s real gross domestic product (GDP) grew 20.1% in the June quarter from a year Production cuts by carmakers may hit supply of popular models during festival season « STATE BANK OF India on Wednesday raised `4,000 crore through Basel-III compliant additional Tier 1 (AT1) bonds, at a coupon rate of 7.72%, reports fe Bureau in Mumbai. This is the first AT1 bond issuance in the domestic market after the new Sebi regulations. PRESS TRUST OF INDIA New Delhi, September 1 « THE GROSS GOODS and servicestax(GST)collectionscame in at `1.12 lakh crore inAugust (largely July transactions), up 30%onyearbutdown3.8%on month, signalling an ongoing economicrecoverybutsuggestingthatactivitiesaren’tpicking up evenlyacross sectors. Continued weakness in the key services sector and subdued consumption are impactingthepaceofrecovery. Data released separately said theNikkeimanufacturingPMI Aug auto wholesales in the slow lane amid chip shortage woes STATE-OWNED Oil and Natural Gas Corp (ONGC) has pumped first gas from its deepwaterU1Bwell in Krishna Godavari block KG-D5 in the Bay of Bengal.The well, in KGDWN 98/2 Block’s Cluster-2, has an estimated peak production of 1.2 million cubic metre per day of gas, the company said in a statement. “Secretary,ministryofpetroleum and natural gas, Tarun Kapoor flagged off maiden productionfromthedeepwatergas wellU1BonAugust31,”itsaid. ONGC’s KG-DWN-98/2 or KG-D5 block,which sits next to RIL’s KG-D6 block in KG basin, hasanumberofdiscoveriesthat havebeenclubbedintoclusters. 1,12,020 92,849 1,16,393 1,41,384 1,02,709 1,23,902 Gross GST collections FE BUREAU New Delhi, September 1 SBI raises `4,000 crore via AT1 bonds After a robust expansion in July, manufacturing activities lost pace in August, thanks to the lingering effect of the second Covid wave in some states and soaring input costs. The Nikkei manufacturing PMI dropped to 52.3 in August from 55.3 in the previous month. 1,19,875 1,13,143 1,15,174 Services sector, consumption remain weak 1,04,963 INDIA IS set to absolve bidders for loss-making Air India from any liability arising out of a lawsuit filed by Cairn Energy, which has claimed the state-run airline’s assets over a longrunning tax dispute with the government, according to people familiar with the matter, reports Bloomberg. SUPPLY BOTTLENECKS ONGC pumps first gas from deepwater well in KG basin « At `1.12L cr,Aug GST mop-up down 4% ● MAIDEN OUTPUT « UNEVEN RECOVERY IN THE NEWS Cairn claim: Govt to offer indemnity to Air India bidders Toyota Motor a bearing on supplies during the upcoming festive season as well. Continued on Page 15
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