ECONOMY, P2 NPA WOES GROWTH REVIVAL Equitas-Google tie-up will target a clientele uneconomical for legacy banking to serve Restored normalcy in PSBs hamstrung by sticky bad assets India expected to grow 10% during current fiscal: NCAER FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 167, 12 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 Corrigendum A wrong image was inadvertently included in the cover collage of the advertorial on Uttar Pradesh produced by the marketing department of the newspaper. The error is deeply regretted and the image has been removed in all digital editions of the paper. Finer points Move aimed at building scale across the textiles and clothing value chain KIRAN RATHEE New Delhi, September 12 Outlay (` cr) AFTER SMARTPHONES, THE government is likely to extend the tenure of productionlinked incentive scheme for IT hardware, at least by a year. Sources said that several of the selected firms have sounded the government that due to supply chain issues and global shortage of semiconductors, there could be production delays because of which the first year (FY22) incremental production and sales targets could be missed. As is known,under the PLI, manufacturers are expected to meet the incremental production and sales target everyyear Investment (` cr) 3,675 2,517 Base year: FY20 Starting year: FY22 Tenure: Four years, which may become five during the tenure of the scheme against the base year. ForIThardware,whichcompriseslaptops,tablets,all-in-one personal computers (PCs) and servers, the base year is FY20 and the tenure is fouryears. Continued on Page 2 I-Trefundsworth `70,120 cr issued till Sep 6 THE INCOME Tax Department on Sunday said it has issued refunds of over `70,120 crore till September 6 this year. Of this personal income tax refunds of `16,753 crore have been issued in over 24.70 lakh cases and corporate tax FE SPECIALS refundof`53,367crorehave beenissuedin1.38lakhcases. "CBDT issues refunds of over `70,120 crore to more than 26.09 lakh taxpayers between 1st April, 2021 to 6th September, 2021,” the Income Tax Department tweeted. ■ Page 5 Mirror, mirror on the wall When it comes to comparative advertising, how much is too much? ■ eFE, P8 Tech & economic growth India’s growth story is being led by the tech-enabled BFSI, healthcare, manufacturing & e-commerce sectors ■ PERSONAL FINANCE, P9 Cyber insurance product norms Irdai’s norms for cyber insurance is expected to help design new products and enhance benefits for policyholders ■ INFRASTRUCTURE, P11 Good fiscal in the works for sector While govts have driven the spending, first-quarter figures point at infra capex growth of 16-18% in the fiscal ■ SCIENCE & TECH, P7 Climatechangefoxeseventhesmart There isn’t enough appreciation of the risks associated with new weather patterns THE CENTRE WILL grant incentivestoinvestorstosetup theproposedmegatextileparks with plug-and-play facilities overlargeareasofatleast1,000 acres each, while states will pitch in with land, textiles secretaryUPSingh told FE. Themoveisaimedat“buildingscale”acrossthetextilesand garment value chain that has remained fragmented for decades, resulting in the country ceding export market share to much smaller economies, such as Bangladesh and Vietnam.Singhsaiditwillalsocomplementtherecently-approved `10,638-crore productionlinked incentive (PLI) scheme forman-madefibreandtechnical textiles segments. The parks will preferably be closetoportsandhouseallsorts of textile and garment firms, including integrated facilities, to create a robust eco-system, according to Singh.The centre willlikelyreleasetheincentives toinvestorsintwoinstallments Mega parks will preferably be close to ports and house textile & garment units Centre will release first instalment of incentives after 60% of work is done Investors will build infra and manage maintenance, effluent treatment and other facilities They will operate the parks for 25-30 years and collect fees from firms that set up shop there — upon the completion of about 60% and 100% ofwork. The investors will not just build infrastructure but even manage maintenance and other related facilities. They will be given to operate the park for a period of 25-30 years and they can collect fees from the companies that set up units there. Even small firms orfashion designerswill be able to set up shop quickly, thanks to the plug-and-play facilities,Singh said. Suchmegaparkswillbeable to better draw overseas buyers by offering a broad range of products and cater for large orders, given the greater syn- SURYA SARATHI RAY New Delhi, September 12 NEW SUBSCRIPTIONS UNDER the Atal Pension Yojana (APY) have been on the rise even during the pandemic period thanks to a stepping up of the outreach programmes by the government and the Pension Fund Regulatory and Development Authority (PFRDA), but income deficiency seems to be forcing an increasing number of workers to leave the scheme prematurely. While a record 79 lakh workers, mostly from the unorganised-sector,joined the APY in FY21, even as the pandemic wreaked havoc, 10 lakh moved out of the scheme in theyear,reflecting the income constraints faced bytheselow- The mega parks, together with recent steps like the PLI scheme, export tax remission programmes and easier labour norms, will enable India to build scale in textiles & garments and record impressive export growth — UP SINGH, textile secretary ergyamongitsresidententities. “Seven mega parks will be set up in the first phase. However, if a greater number of states,who are willing to offer land, approach us for the setting up of the parks, we will undertake a ‘challenge method’to select the top seven ofthem,usingcertaincriteria,” Singh said. The parks were announced as part of the FY22 Budget proposals. The selection criteria could include the proximity of the landtoports,rawmaterialavailability and modes of transportation,among others. Those who left the scheme during the year % of people left against new enrollments Net (active) APY subscriber base as on Aug 31, 2021 3.05 cr Continued on Page 2 FY17 FY19 FY20 FY21 FY22* 1.8 % 6.4 % 10.1 % 12.7 % 19.7 % Source: PFRDA 2020 Govt appoints 31 members at NCLT, ITAT 20.5 0.5 Jan Feb Mar Apr May Jun Jul Source: RBI ing the comparable period of 2020, when the pandemic first broke out in India. NBFC industry executives said that liquidity is not a problem for the larger players, but smaller lenders have been finding it difficult to access bank loans. Continued on Page 2 Zomato to stop grocery delivery from Sep 17 ONLINE FOOD delivery platform Zomato has decided to stop its grocery delivery service from September 17 mainly on account of gaps in orderfulfillment leading to poor customer experience, marking its exit from the PRESS TRUST OF INDIA New Delhi, September 12 6.6 2021 segment for the second time since last year The company had entered the segment last year during the lockdown on account of the Covid-19 pandemic,but exited the business on the recovery of its food delivery business. ■ Page 3 NEW FACE Senior BJP leader Bhupendra Patel will succeed Vijay Rupani as the chief minister of Gujarat PTI Fixed investments PRASANTA SAHU CPSEs quicken capex, pvt investors 'wait and see' Large CPSEs achieved 30% of the aggregate capital expenditure target for them for FY22 in the first five months of the year, by spending `1.77 lakh crore CPSEs and departmental arms’ capex* (` lakh crore) 7 5.95 6 5 4.41 4.36 4.41 4.6 4 3.81 3 2 1 0 `1.77 lakh cr or 30% of FY22 capex target achieved in April-August FY17 FY18 FY19 FY20 FY21 FY22E *Data for entities with minimum `500 crore annual capex Top state-run investors in April-August, FY22 Investment (` crore) Investment in April-Aug as % of FY22 target NHAI 53,000 43 Railways 53,000 27 NTPC ` 9,700 41 IOC 9,900 35 ONGC 9,300 31 Packaging education to play key role: Anupriya Patel PACKAGING IS a unique field and it should be promoted, as the sector will play a vital role in promoting various products of every industry, minister of state for commerce and industry Anupriya Patel has said, reports PTI. IN THE PIPELINE Housing supply and demand set to grow this festival season SHUBHRATANDON Mumbai, September 12 THE UPCOMING FESTIVE season is expected to spoil customers for choice in the residential real estate sector. After witnessing tepid launches momentum for several years and last year’s season getting hit by the pandemic,2021 will see some big projects getting launched across the country. As per Anarock Research, current trends suggest that there will be at least 30-40% growth in both new launches and sales in the ongoing quarter(July-September) as against the preceding one.As many as 24,600 units were sold across the top seven cities in Q2 2021,while 36,250 unitswere launched in the same quarter. In Mumbai Metropolitan Region (MMR) alone, consultants expect 2 million sq ft of launches in the coming festive months with 25-30 big launches planned, having inventory worth `3,750-odd ROHNIT PHORE FMCG MAJOR Godrej Consumer Products (GCPL) is looking at clocking a double-digit growth in the current fiscal with expansion across segments, according to a company official, reports PTI. The Godrej group firm has taken multiple initiatives to tap the potential of the new age channels such as e-commerce along with chemist and pharmacy stores that have emerged as important touchpoints. PAGE 5 THE GOVERNMENT HAS appointed 31 people as judicial, technical and accountant members at the NCLT and the ITAT,amid the Supreme Court flagging concerns about vacancies at various tribunals. TheNationalCompanyLaw Tribunal (NCLT) deals with mattersmainlyrelatedtocompanies law and insolvency law while Income Tax Appellate Tribunal (ITAT) deals with income tax matters. The appointments also come at a time when the Supreme Court has flagged concerns, saying the Centre was "emasculating" tribunals by not appointing officials to the quasi-judicial bodies that are facing staff crunch. There are around 250 posts lying vacant at various key tribunals and appellate tribunals such as NCLT, DRT, TDSAT and SAT. As many as 8 judicialand10technicalmembershavebeenappointedtothe NCLT while 13 judicial and accountant members have been appointed to the ITAT, according to separate communicationsissuedbytheDepartment of Personnel and Training on September 11 based on decisionstakenbytheAppointments Committee of Cabinet. Continued on Page 2 QuickPicks Godrej Consumer Products expects double-digit growth in FY22 *till Aug-end ● AFTER SC RAP (y-o-y growth, %) 35.8 scheme under NPS, Page 5 FY18 Bank loans outstanding to NBFCs 40 35 30 25 20 15 10 5 0 -5 Continued on Page 2 ■ E&Y, Mercer bid to design New enrollment during the year Bank loans to small NBFCs slow down THE GROWTH IN outstanding bank loans to non-banking financial companies (NBFCs) has slowed down significantly on a year-on-year (y-o-y) basis in 2021, according to data released by the Reserve Bank of India (RBI). Industry executives said that the phenomenon is a result of credit to smaller NBFCs drying up amid heightened caution on the part of banks. Credit outstanding to non-bank lenders has been growing in the low single digits through much of the current year, with banks’ NBFC book actually shrinking 2.2% y-o-y in June 2021. The growth rate moved back into positive territory in July, though it remained at a muted 0.5%. This is in contrast to the 20-36% growth rates seen every month dur- wage earners. In just the first five months of the current fiscal year, 5.9 lakh people opted out of the scheme,while around 30 lakh joined.Those who opted out of the scheme were 19.7% of the newly joined in April-August, FY22 as against 12.7% in FY21,10.1%inFY20and6.4% in FY19. APY is the governmentbacked, voluntary scheme meant to provide old-age income security in the form of minimum assured pension (ranging from `1,0005,000/month), in proportion to individual contributions, even as it is market-linked. Atal Pension Yojana LOW CREDIT GROWTH SHRITAMA BOSE Mumbai, September 12 ■ BRANDWAGON, P10 BANIKINKAR PATTANAYAK New Delhi, September 12 Weaving growth Income losses force workers to opt out 29,90,503 5,88,407 COAL INDIA might raise prices of the dry fuel by at least 10-11% to mitigate the impact of increased costs, sources close to the development said, reports PTI in Kolkata. The hardware industry has sounded the government about supply chain problems Big textile parks near ports to boost exports 79,14,142 CIL likely to hike coal prices by 10-11% IT PLI likely to be extended by a year ATAL PENSION YOJANA NEW INCENTIVES 48,21,632 84,797 CONTINUING THE BUYING in Indian markets, foreign portfolio investors (FPIs) pumped in a net sum of `7,605 crore in September so far. According to data from depositories, overseas investors invested `4,385 crore into equities and `3,220 crore in the debt segment during September 1-9, reports PTI in New Delhi. During this period, the total net investment stood at `7,605 crore. CHIP SHORTAGE 23,98,934 IN THE NEWS FPIs continue to invest in Indian markets 10,07,253 NEW DELHI, MONDAY, SEPTEMBER 13, 2021 68,83,373 A larger coverage should have been targeted for oil-palm mission EDITORIAL 6,94,543 ASHOK GULATI & RITIKA JUNEJA NATION, P5 57,12,824 3,65,105 OPINION, P6 crore. After a long hiatus, the good news is that branded developers are entering the market. Prestige Estates Projects is launching three projects in Mumbai’s Byculla, Mulund and Chembur neighbourhoods, another southbased developer Puravankara plans to launch two, while Oberoi Realtyis understood to be launching a project in Thane.Sunteck Realtyhas also lined up launches in the existing Oshiwara District Centre and Naigaon projects. New Delhi Ritesh Mehta,senior director& head (residential services & developer initiatives), western India, JLL told FE that the launch pipeline is particularly looking strong in MMR because developers have taken advantage of government’s concession scheme under which if developers gave upfront amount for all the approvalsneededfortheirprojects, they got a 50% concession on the same. Continued on Page 2
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