OPINION, P6 COMPANIES, P4 EDITORIAL Tax compliance costs cannot be reduced till exemptions go MESSAGE SENT GOVT BORROWING Textiles PLI incentives are attractive, but for exports to take off, infra needs to be upgraded BIBEK DEBROY INTERNATIONAL, P8 End-to-end encryption not undermined by spam reports, says WhatsApp Treasury secy Yellen warns US may hit debt limit in October NEW DELHI, THURSDAY, SEPTEMBER 9, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 164, 26 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: 58,250.26 ▼ 29.22 NIFTY: 17,353.50 ▼ 8.60 NIKKEI 225: 30,181.21 ▲ 265.07 HANG SENG: 26,320.93 ▼ 32.70 `/$: 73.60 ▼ 0.18 `/€: 86.96 ▲ 0.16 BRENT: $72.56 ▲ $0.87 GOLD: `47,003 ▼ `221 IN THE NEWS Strong India GDP growth in coming quarters: S&P INDIA IS EXPECTED to post strong economic growth in the coming quarters, even as inflation is likely to remain elevated, S&P Global Ratings said on Wednesday, reports PTI. India is expected to clock 9.5% growth in the current fiscal, followed by 7% expansion in the next year. Uco Bank taken out of PCA restrictions: RBI THE RBI ON Wednesday said Uco Bank is taken out of the Prompt Corrective Action restrictions subject to certain conditions and continuous monitoring, reports fe Bureau in Kolkata. The Kolkata-based bank came out of the PCA restrictions after more than four years. Govt sticks to Sept 15 date for AI financial bids THE CENTRE WILL stick to the September 15 deadline for investors to put in bids for buying national carrier Air India, an official said, reports PTI. This is in stark contrast to the extension of deadline for preliminary bids five times. Seeds price fixing: CCI raids offices of BASF, others THE CCI ON Wednesday raided local offices of several vegetable seed companies, including a unit of Germany's BASF, in a case related to alleged price collusion, two sources told Reuters. 1.19 crore ITRs filed so far for AY 2021-22 DESPITE GLITCHES IN the new e-filing portal, the I-T department said the ITR filing rose to 3.2 lakh daily in September and 1.19 crore ITRs have been filed so far for AY 2021-22, reports fe Bureau in New Delhi. SCHEME REDRAWN Auto PLI to get a clean tech facelift `25,938 crore Outlay under revised scheme to be slashed Revised auto PLI outlay; proposal likely to be approved by Cabinet soon `57,043 crore ADITI SHAH & AFTAB AHMED New Delhi, September 8 THE GOVERNMENTWILLgive about $3.5 billion (`25,938 crore) in incentives to auto companies over a five-year period under a revised scheme to boost the manufacturing andexportofcleantechnology vehicles, two sources aware of thelatestproposaltoldReuters. The government’s original planwastogiveabout$8billion (`57,043 crore) to automakers andpartmanufacturerstopromote mainly gasoline technology, with added benefits for electricvehicles (EVs). The scheme was redrawn to focus on companies that build electricandhydrogenfuel-powered vehicles,Reuters reported on Friday,with the shift just as TeslaisgearinguptoenterIndia. Itwasnotimmediatelyclear why the allocation had been revised, but one of the sources said that since the focus had changed to clean and advanced technology fewer companies would be eligible for the incentives.Indiaseescleanautotechnology as central to its strategy toreduceitsoildependenceand Initial outlay for automobile and auto components sector for 5 years ■ Revised scheme to boost the manufacturing and export of clean technology vehicles ■ Scheme likely redrawn to focus on companies that build electric and hydrogen fuelpowered vehicles ■ Domestic automaker Tata Motors is the largest seller of electric cars in India ■ Rival M&M and motor-bike makers TVS Motor & Hero MotoCorp firming up EV plans CABINET CALL Textiles get `10,683-cr PLI boost,cotton out A STITCH IN TIME Investors in select MMF, technical `10,683 cr textiles facilities to Incentives to be extended over 5 years get up to 15% incentives for 5 years FE BUREAU New Delhi, September 8 THE CABINETCOMMITTEEon economicaffairsonWednesday cleareda`10,683-croreproduction-linkedincentive(PLI)scheme under which manufacturersofselectman-madefibreand technicaltextileproductswillbe granted incentives up to 15%. Potential investors will have to set up new subsidiaries to get the benefits available for five years.Theschemeisopentotwo categories of investors. Those who will invest at least `300 crore will be eligible for a 15% `19,000 cr Expected investments under the PLI scheme 7.5 lakh Direct jobs to be created `3,00,000 cr Incremental turnover over 5 years incentive in thefirstyearif they achieveaturnoverof`600crore ormore.Similarly,those investing at least `100 crore will get 11% in the first year if their turnover hits `200 crore or Leveraging economies of scale, the PLI scheme will help Indian companies to emerge as global champions... engaged in FTA talks with the UK, the UAE and the EU, which will help the textiles sector (when they are signed). —PIYUSH GOYAL, TEXTILES MINISTER more.After the first year, both the categories of investors will have to show a 25% incremental turnoverannually. Continued on Page 2 FRESH RAISE Byju’s valued at near $17 billion Raises $150 million; eyes $21 billion in valuation FE BUREAU New Delhi, September 8 THECOUNTRY'SMOSTvalued online education firm, Byju’s has raised a fresh $150 million (`1,093.98 crore) in funding fromaclutchofinvestorsledby Asmaan Ventures. Mirae Asset, MACM India Growth Fund and ARK Ncore also backed the investmentround,accordingto the company’s filings with the Registrar of Companies (RoC), ministryof corporate affairs. The fundraise reportedly values the company at about $16.87 billion. Byju’s did not respond to FE’s queries in relation tothis roundof fundraise. The fundraise almost coincides with the firm’s acquisi- 10 cut the debilitating pollution in itsmajorcities,whilealsomeeting its emissions commitment underthe Paris ClimateAccord. Continued on Page 2 FE BUREAU 5 0 2017-18 2018-19 2019-20 2020-21 2021-22 10 6.86.1 4.6 6.4 5.9 2.6 2 Wheat 4.9 2.1 Barley 2.2 5 5.5 4.6 2.5 Gram 20.6 8.6 7.6 7.3 7.8 8.1 6.3 5.4 5.1 5.3 5 10.8 5.5 2.12.1 Lentil Mustard Safflower MARKET HIGHS Special Feature Google & Oneplus wireless earbuds: Rich sound,clear calls Google Pixel Buds and OnePlus Buds Pro at `9999 and `9990, respectively, have a snug fit, well-rounded clean sound and long-lasting battery life. These are the new benchmarks for wireless earbuds ■ Gadgets, P7 QuickPicks NCLAT dismisses Devas plea challenging liquidation order The NCLAT on Wednesday dismissed appeals filed by Devas Multimedia employees, representing shareholders and the ex-management, seeking to stay the May 25 order of the NCLT, Bangalore that directed initiation of the liquidation process for Devas Multimedia, reports fe Bureau in New Delhi. On a petition filed by Antrix Corporation, an entity dealing in commercial business of spectrum under the control of the department of space and Indian Space Research Organisation, the NCLT directed the initiation of the liquidation process for Devas Multimedia on account of fraudulent conduct. PAGE 15 Chip shortage: MSI reports 8% dip in production in August THE COUNTRY'S largest carmaker Maruti Suzuki India on Wednesday said its total production in August declined by 8% y-o-y to 1,13,937 units as semiconductor shortage impacted its manufacturing schedules, reports PTI. The company had produced a total of 1,23,769 units in the year-ago period, Maruti Suzuki India (MSI) said in a regulatory filing. "Production volume of the company in August 2021, was affected due to electronic components shortage," the auto major noted. MSI said total passenger vehicle production stood at 1,11,368 units last month, against 1,21,381 units in August 2020. PAGE 4 Retail MF investors turn cautious in Aug FE BUREAU Mumbai, September 8 RETAIL INVESTORS TURNED cautious inAugust and continued to book profits, as stocks hit newhighs.Even though the net inflows into equity-oriented schemes in August held up at `8,666.68 crore,according to data released by the AssociationofMutualFundsin India (Amfi), they were 61.6% lower than July’s inflows of `22,583.52 crore. Redemptions during August remained elevated at `25,002 crore, as retail investors continued to pull money out from select equity schemes. According to NSVenkatesh, chief executive officerofAmfi, the robust monthly mobilisation in arbitrage, dynamic asset allocation,thematic/sectoral and diversified flexicap schemes has overshadowed profit-booking during the last few months. Focussed and flexi cap funds found favour with investors, with maximum inflows going into these categories. In contrast, investors pulled out `613 crore out of Value/Contra funds, `778 crore out of ELSS funds and `162 crore out of Smallcap funds in August. Industry experts believe that while existing investors areswitchingfrompureequity Investors: Silver Lake, Bond, DST Global, Tiger Global, General Atlantic, Owl Ventures tion of online test prep platformGradeup,announcedearlier this week. Continued on Page 2 COLLEGEDEKHO, A COLLEGEadmissionsandeducation services platform, on Wednesday said it has raised $26.5 million (about `200 crore) in an ongoing funding round, led by Winter Capital Partners,ETS Strategic Capi- renewable sources such as solar and wind plants.Singh said that as much as 8,800 MW ofelectrolysercapacityisrequiredtomeetthe demandoftheobligatedindustries,iftheyare mandated to source even 10% of their requirementsthroughdomesticgreenhydrogen. The purchase obligation will be later increased to 20-25%. ■ Page 2 The minimum support prices (MSPs) for six rabi season crops announced on Wednesday — with increases of 2-8.6% on year — reflect the government's efforts to encourage crop diversification; MSP increases have been relatively steeper for winter oil-seed and pulse, while wheat, the key winter cereal, saw only a modest 2% rise 15 $1 billion Raised in 2020 CollegeDekho raises $26.5 m in funding MSPs up 2-9% on year, incentive for mustard & masur 20 Investors: B Capital Group, Baron Funds, XN Exponent Holdings, Blackstone, UBS Group, Phoenix Rising TO EXPEDITETHE uptake of green hydrogen, the government will come up with a production-linked incentive (PLI) scheme for investorsinelectrolysermanufacturing,Union power minister RK Singh said on Wednesday, reports feBureau in NewDelhi. Electrolysers are used to produce green hydrogen using electricity generated from term plan to launch EVs as it doesn’t see volumes, affordability for consumers Rabi crops: MSP change (%, y-o-y) crop year (July-June) $1.6 billion Raised so far in 2021 PLI scheme for electrolyser manufacturing on the cards: Singh ■ Maruti Suzuki has no near- Tracking rabi 25 CAPITAL GAINS TO BE NOTED 80 lakh folios added in five months of FY22 74 lakh folios were added in FY21 ■ Monthly SIP contribution at all-time high of `9,923.15 crore ■ SIP AUMs at `5.26 lakh cr ■ This is now a third of total retail AUM of `17.15 lakh cr ■ SIP accounts hit 4.32 cr; 1.02 cr added in last 12 months Net equity inflows (` crore) 30,000 24,000 18,000 12,000 6,000 0 -6,000 -12,000 July 22,584 March 9,115 8,667 -9,253 Jan 2021 Aug 2021 schemes to less risky categories,newinvestorsareentering the market with hybrid funds.Fund houses continued to launch new fund offers in the balanced advantage category during the month,which helped garner flows. Continued on Page 2 New Delhi tal and Calega,reports PTI. Existing investors, Man Capital and Rajeev Chaba alsoparticipatedintheseries B round of funding, a statement said.The companyhad last raised $8 million in May 2019. ■ Page 4
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