MARKETS, P6 SDR PUSH ECONOMY, P2 Forex reserves rise $8.895 bn to record high of $642.453 bn INTERNATIONAL, P8 FUND FACTS SUBSCRIPTIONS RISE SOURING TIES Eleven firms debuted at discount since January after raising funds via IPO Auto enrolment to help broaden pension cover: PFRDA chief Facing stalemate, Biden and China’s Xi discuss avoiding conflict in call NEW DELHI, SATURDAY, SEPTEMBER 11, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 166, 16 PAGES, `10.00 (PATNA `10.00, RAIPUR `10.00) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E *SENSEX: 58,305.07 ▲ 54.81 *NIFTY: 17,369.25 ▲ 15.75 NIKKEI 225: 30,381.84 ▲ 373.65 HANG SENG: 26,205.91 ▲ 489.91 *`/$: 73.50 ▲ 0.10 *`/€: 86.97 ▼ 0.01 BRENT: $73.03 ▲ $1.58 GOLD: `46,898 < > `00 *As on Sept 9 — THE CENTRE ON Friday urged states to enforce stock disclosure norms on millers and bulk traders of edible oils in order to check “hoarding” and check any further price rise, reports fe Bureau in New Delhi. Prices of major edible oils have increased in the range of 20-48% from the year-ago levels. PM chairs meet on Covid situation, vaccination PRIME MINISTER NARENDRA Modi on Friday chaired a high-level meeting to review the Covid-related situation and the vaccination drive in the country, reports PTI. The meeting comes a day after Union health secretary Rajesh Bhushan said India is still going through the second wave and it’s not over yet. Rainfall recorded in August lowest in 19 years: IMD RAINFALL IN AUGUST, with a 24% deficiency, was lowest in 19 years, the IMD said on Friday, reports PTI. Two major spells of weak monsoon prevailed in the month when northwest, central and adjoining peninsular and west coast had subdued rainfall. CHIP SHORTAGE HIGH SHIPPING COSTS TAKE-OFF Jio-Google phone IndiGo sees full-capacity Scheme to support farm exporters launch delayed domestic flights by Dec Low-cost phone will now come by Diwali FE BUREAU Mumbai, September 10 THE LAUNCH OF the muchawaitedJioPhoneNexthasbeen delayed and is now expected to be launched for the Diwali festive season, Reliance Jio and Google said in a statement on Thursday midnight.This most affordable 4G made-for-India smartphoneisbeingdeveloped jointlybyJio and Google. RILchairmanMukeshAmbanihadearlierannouncedinthe company’sAGMinJunethatthe phone will be launched on September 10, the day of Ganesh Chaturthi.However,initsFriday statement,itsaid,“Bothcompanies have begun testing JioPhoneNextwithalimitedsetof usersforfurtherrefinementand To be noted It is expected that the Jio-Google smartphone will be priced within the `5,000 bracket Jio expects that 300 million 2G subscribers would migrate to this new phone The company plans to make India 2GMukt and 5G-Yukt ■ Current JioPhone is not exactly a smartphone but has some features which conventional feature phones do not offer are actively working to make it availablemorewidelyintimefor the Diwali festive season.” Continued on Page 2 DoT flags unauthorised sale of mobile signal booster by e-commerce firms DoT ON FRIDAY wrote to the customsdepartmentflagging unauthorised sales of mobile signalboostersbysomee-tailers and sought strict implementation of import rules to curb such practices, reports PTI. The mobile signal boosterandwalkie-talkiesetsfall under the category of transmissionapparatusincorporating reception apparatuswhich are not to be imported sans a licence. ■ Page 2 Strengthens the case for electric cars, but just about The Tigor EV is `2 lakh cheaper than the Nexon EV, but it has a smallercapacity battery and slightly lesser driving range (claimed in 306 km on full battery charge). ■ Motobahn, P7 targeting just over two-thirds in international routes Varun Beverages is primed for multiple re-rating Firm has staged a strong recovery after Covid-19 disruptions; CY20-23e EPS CAGR estimated at 49%; stock a high-conviction ‘Buy’; target price raised to `1,200 from `930 ■ Investor, P7 QuickPicks ‘Ford move doesn’t reflect on India’s business environment’ ANIRBAN NAG Mumbai, September 10 is around 70%, yields likely to rise in coming months INDIGO, ONE OF Asia’s biggest budget airlines,is aiming at running at full capacity domestically and is targeting justovertwo-thirdsininternational routes as the virus pandemic eases and people start traveling more. “Things are improving slowly,” chief executive officer RonojoyDutta told Bloomberg Television’s Rishaad Salamat and Haslinda Amin on Friday, adding that it was“hard not to bebullishastrafficisgoingup”. He said the current load ■ Airline wants to raise funds as an insurance buffer against a possible third wave THE INDEX of industrial production (IIP) grew 11.5% in July, driven by a contracted base, reports fe Bureau in New Delhi. However, the index substantially bridged the gap with the pre-pandemic level and remained only marginally lower than the July 2019 mark, suggesting a graded pick-up in industrial activities with the easing of curbs in key states as the second wave waned. Barring consumer durables, all other use-based categories rebounded to or above the pre-Covid levels. PAGE 2 Vedanta seeks premium over govt rates for Assam block gas VEDANTA IS seeking a premium of at least $1 over the government-mandated price for the natural gas it plans to produce from its Assam block, reports PTI. The firm, which merged the Rajasthan oil-discoverer Cairn India into itself, has sought bids from users for the gas it plans to produce from the Hazarigaon field in Assam from March next year. Vedanta plans to produce 0.10 mscmd from the onshore block it had won under the discovered field bid round a couple of years back. PAGE 4 loss of `3,180 crore in June quarter ■ This was worse than a loss of `2,850 cr a year earlier to be short-lived as forecasters predict a new Covid wave may peak in October.India has suspended international flights until September 30 and limited the passenger capacity on domestic services to 72.5% of pre-pandemic levels. Continued on Page 2 AHEAD OF STRATEGIC disinvestment of Air India and fuel retailer-cum-refinerBPCL,the governmentonFridaysaidlossesincurredby disinvestedPSUsinpreviousyearscanbecarried forward and set off,reports fe Bureau in New Delhi.“In order to facilitate the strategic disinvestment, it has been decided that Section 79 of the Income-taxAct,1961,shall not apply to an erstwhile public sector companywhichhasbecomesoasaresultofstrategic disinvestment,” the Central Board of Direct Taxes (CBDT) said.“Accordingly, loss incurred in any previous year prior to, and including, the previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector company.” (` per 20-ft normal container) Earlier Revised 11,200 Africa 16,800 9,800 Europe FE BUREAU New Delhi, September 10 AMID A SURGE in shipping costs,thegovernmentonFriday extended some relief to exporters of specified products by reintroducing the Transport and Marketing Assistance (TMA) scheme,with wider coverage and much largersupport, for one year.UnderTMA,which wasvaliduptoMarch2021,the government reimbursed exporters a certain portion of freight charges and offered assistance for the marketing of select agricultural produce. Rates of assistance have been hiked by 50% for exports by sea and 100% for those by air. Similarly, dairy products, which were not covered under the earlier TMA scheme, will now be eligible for assistance, thecommerceministrysaidina statement. FE had on September 5 reported that the Centre was considering extending the scheme for at least one more yearwith enhanced support. 14,200 8,400 West Asia 12,600 21,000 North America ASEAN 31,500 5,600 8,400 23,800 South America 35,700 Under the revised scheme, which will be in force until March2022,exportersofspecified farm products will be granted aid in the range of `8,400 to `35,700 for shipping out a normal container (20-foot long) of goods, depending on the destination. Continued on Page 2 ● A LETTER TO FM 34,973 new daily infections FE BUREAU New Delhi, September 10 260 fresh daily fatalities 3,31,74,954 total cases 4,42,009 total deaths ■ Active cases ■ Reduction ■ National active caseload in 24 hours comprise of 2,968 1.18% of the cases total infections recorded in recovery rate recorded at 97.49% Consumption collapse, return of labour to agri testimony to policy failure: Mitra recorded 1.96%. It has been less than 3% for last 11 days Continued on Page 2 ing, the bank said its board has“approvedraisingofcapital through issue of Basel III additional Tier-1 (AT-1) bonds or Tier II bonds or a combination of both in one or more tranches up to an amount of `6,000 crore”. CITING THE 'FAILURE' of the Centre in addressing the rise in unemployment, ‘reverse migration of workers to agriculture’,‘persistent(high)inflation’ and ‘collapse’ of private consumption, West Bengal financeministerAmitMitraon Friday wrote to Union finance minister Nirmala Sitharaman, reiterating the need for ensure cash in the hands of people, to stimulate demand. In Q1 of 2021-22, private consumption, which constitutes56%oftheGDP,was12% belowthepre-pandemiclevelof 2019-2020.“It is pathetic that private consumption in 202122 so far is almost identical to private consumption in 201718,” he wrote. Consumer sentiment in August has significantly fallen as per the RBI and CMIE,he noted. “The nation is shocked to find that in the last month (August2021),unemployment ratehasagainshotupto8.32%, which implies that 3.6 crore people are jobless today,” the West Bengal FMwrote. EINSTEIN IN CHINA A humanoid robot in the likeness of Albert Einstein developed by EXRobots is displayed at the Beijing World Robot Conference 2021 on Friday August decline FE BUREAU Chip shortage puts auto sales in slow lane Auto wholesales across categories declined 11% y-o-y in August as semiconductor shortage hit the industry hard. Cumulative sales during April-August 2021, in the PV segment is still below 2016-17 levels, and in two-wheeler lower than 2011-12. Category (in units) Passenger vehicles Aug ‘20 Aug ’21 % growth 2,15,916 7.5 2,32,224 Twowheelers 15,59,665 13,31,436 Three- 14,534 wheelers 23,210 Aug ‘19 1,89,129 15,14,196 14.6 « IIP grows 11.5% in July, slightly trails pre-pandemic level factor for the airline is around 70% and yields are likely to rise in coming months. Current cash levels were “pretty good,” Dutta said, thoughheaddedthatthecompany wanted to raise funds as an insurance buffer against a possible third wave. India’s air travel recovery could turn out ■ The carrier posted a Government allows disinvested PSUs to set off past losses PNB board approves raising `6,000 crore PUNJAB NATIONAL BANK (PNB)onFridaysaiditsboard has approved raising up to `6,000 crore by issuing bonds,reports PTI.The decision was taken at the meeting of the board of directors on Friday.In a regulatoryfil- could be short-lived with third wave prediction in October Rates of assistance « A DAY after US auto major Ford Motor made the surprise announcement of stopping vehicle manufacturing in India, a senior government source on Friday said the decision in no way reflects on the business environment in the country and is rather linked to operational issues, reports PTI. The source, a senior functionary in the government who wished not to be identified, reasoned the shutdown decision to competition from Japanese and Korean carmakers. PAGE 4 INDIA LOGGED 34,973 new coronavirus infections taking thetotaltallyofCovid-19cases to 3,31,74,954, while the active cases declined to 3,90,646, according to the Union health ministry data updated on Friday. The death toll climbed to 4,42,009 with 260 fresh fatalities, according to the data updated at 8 am. The active cases comprise 1.18% of the total infections, whilethenationalrecoveryrate was recorded at 97.49%, the ministry said. A reduction of 2,968 cases has been recorded intheactiveCovid-19caseload in a span of 24 hours. Asmanyas17,87,611 tests were conducted on Thursday taking the total cumulative tests conducted so far for detection of Covid-19 in the country to 53,86,04,854. The daily positivity rate was ■ Air travel recovery ■ Current load factor India’s active cases decline to 3,90,646 PRESS TRUST OF INDIA New Delhi, September 10 Rates of assistance hiked by 50% for exports by sea, 100% for those by air ■ Budget carrier is COVID-19 Special Features back & fortified FLIGHT CHART CEO Ronojoy Dutta says it’s ‘hard not be bullish as traffic is going up’ « IN THE NEWS Edible oils: States asked to enforce stocking norms 59.7 58,818 Source : Siam Continued on Page 2 STAR WARS Amazon takes a swipe at Elon Musk as satellite feud escalates JUSTIN BACHMAN September 10 THE COSMIC CARPING between billionaires Jeff Bezos and Elon Musk is moving from the moon to low-earth orbit. Amazon’s satellite subsidiary, Kuiper Systems LLC, filed a scathing comment with the FederalCommunicationsCommission,accusingMuskandhis companies of flouting regulations with a general attitude that“rulesareforotherpeople.” Musk’s SpaceX and Bezos’s Jeff Bezos ■ Musk’s SpaceX and Bezos’s Kuiper Systems have rival satellite constellations in lowearth orbit to provide broadband internet access Elon Musk ■ SpaceX responded that Amazon’s eight-page 'diatribe' was 'wholly irrelevant' to topics before the commission ■ Amazon satellite subsidiary, Kuiper Systems, filed a scathing comment against Musk with the FCC ■ It accuses Musk, his cos of flouting regulations with a general attitude that 'rules are for other people' Kuiper Systems are before the FCC with rival satellite constellationsinlow-earthorbittoprovidebroadbandinternetaccess. The dispute mirrors similar sniping between SpaceX and Bezos’s Blue Origin LLC space company over a NASA contract to build and demonstrate a human lander system for a planned return to the moon. The billionaires’ dispute grewmorepointedWednesday in Amazon’s letter to the FCC: “Whetherit is launching satel- liteswithunlicensedantennas, launching rockets without approval, building an unapproved launch tower, or reopening a factory in violationofa shelter-in-placeorder, the conduct of SpaceX and other Musk-led companies makes their view plain: rules are for other people,and those whoinsistupon orevensimply request compliance are deserving of derision and ad hominem attacks,” Kuiper attorney C Andrew Keisner wrote“withasigh,”responding New Delhi to a SpaceX filing last week. The broadside included prior actions by all of Musk’s primary businesses, SpaceX, Starlink and Tesla. The references relate to rocket launches and launch-pad construction in South Texas; Starlink’s antenna designs; and Musk’s decision to reopen Tesla’s Fremont, California, assembly plant in May 2020, defying countyhealthofficials’orderto stay at home. Continued on Page 2
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