COMPANIES, P4 BUMPER BOOKINGS ECONOMY, P2 Ola nets `1,100 cr in e-scooter sales in two days INTERNATIONAL, P8 CASHBACK OFFERS GOYAL-SPEAK RIGGING ALLEGATIONS Redington to retail latest range of iPhones in over 3,500 locations ‘WTO Agreement on Agriculture tilted against developing nations’ IMF chief called out over pressure to favour China while at World Bank HYDERABAD, SATURDAY, SEPTEMBER 18, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XVIII NO. 115, 12 PAGES, `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: 59,015.89 ▼ 125.27 NIFTY: 17,585.15 ▼ 44.35 NIKKEI 225: 30,500.05 ▲ 176.71 HANG SENG: 24,920.76 ▲ 252.91 `/$: 73.48 ▲ 0.03 `/€: 86.59 ▼ 0.04 BRENT: $75.12 ▼ $0.55 GOLD: `46,178 ▼ `252 THE UK ON Friday expressed hope that itwill be able to soon complete the negotiations for the proposed free trade agreement (FTA) with India, a move aimed at further enhancing trade and investment ties between the two countries. “I can confidently predict that we will complete the India-UK FTA before we see an India-EU (European Union) FTA completed,” UK investment minister Lord Gerry Grimstone said. Speaking at industry body CII’s India-UK Annual Conference, he said there have been productive discussionson how the trade pact can act as a means to connect the two economiesandtodoublebilateraltradeoverthe next decade. India and the UK are aimingtostartnegotiationsforthe proposed bilateral FTA by November 1. Recently, commerce and industry minister Piyush Goyal said the two countries are moving towards an early harvest trade agreement,with a comprehensive FTA as the next step. Continued on Page 2 Continued on Page 2 FE BUREAUS New Delhi/Lucknow, September 17 Finance minister Nirmala Sitharaman chairs the 45th GST Council meeting in Lucknow on Friday FY18 FY19 FY20 81,179 1,00,000 2,01,000^ (` crore) Cess collection Compensation released/ required Compensation not paid to states yet 2,59,000# Revenue protection for states: End of the road? 1,65,512* STATE GOVERNMENTS ON Friday looked coming up against a fiscal cliff in FY23, as the Centre made it clear it can’t extend the GST revenue compensation mechanism for them beyond the five years through June 2022. This leaves the states with no option other than to rely on a near comprehensive revision of the goods and services tax (GST) rates and possible pick-up in economic growth to soften the looming revenue shock. The GST Council, which met in Lucknow on Friday, however,decided to set up two groups of state finance ministers(GoMs)soon: onetolookat 85,519 THE CENTRE on Friday said prices of 8 types of edible oils in the wholesale markets across the country are showing a declining trend over the last week after it took several steps to boost domestic supply and curb hoarding, reports PTI. PRESS TRUST OF INDIA New Delhi, September 17 95,551 ‘Wholesale edible oil prices showing declining trend’ ‘rationalisation’ of the rate structure and another to deal with compliance and technology issues, reflecting the urgency felt by the council to bolster the revenues. Both the panels will submit the reports in two months. The Council also extended the taxwaiver/sopsfora clutch of Covid drugs by three months to December 31 and gave such tax relief for many more drugs, including some other lifesaving drugs and anti-cancer medicines. The Council approved a proposal of its fitment committee to make e-commerce operators Swiggy, Zomato liable pay GST (at 5%) on restaurant services supplied through them, effective January next year; the tax will be charged at the point of delivery. The move is aimed at shifting the responsibility of collecting the tax from restaurants to the apps to make compliance easierand certain, however, it could marginally increase the tax incidence on small restaurants, otherwise exempt from GST (annual turnover less than `20 lakh), analysts fear. Says cesses will have to stay till FY26 just to finance the back-to-back loan facility; feels revenue augmentation is the way forward 82,882 OIL REGULATOR PNGRB on Friday invited bids for giving out city gas retailing licence in 65 geographical areas, including Jammu, Nagpur, Pathankot and Madurai, reports PTI. Bids for the 65 GAs on offer in the 11th city gas licensing round are due on December 15, it said. Govt reluctant to extend GST aid to states beyond June 2022 95,081 PNGRB seeks bids for city gas licence for 65 areas ● FTA TALKS Trade pact with India very soon, says UK 49,514 THE UK government on Friday announced a major relaxation of international travel rules for vaccinated people coming in and out of England, with long-haul routes between India and the UK set to benefit, reports PTI. From October 4, the current system of red, amber and green countries will be replaced with only one red list. TOUGH STAND 62,612 IN THE NEWS UK eases rules for vaccinated visitors, India to benefit FY21 FY22E *Shortfall in cess kitty bridged ^Includes back-to-back #Includes backvia `33,412 crore unutilised loans of `1.1 lakh crore & to-back loans of IGST receipts for FY18 unutilised cess proceeds `1.59 lakh crore VACCINE ALLIANCE Special Features Hydrogen: An alternative to battery electric mobility The National Hydrogen Mission can prove to be a game changer for the Indian auto industry, and especially for commercial transportation, including buses & heavy-duty CVs. ■ Motobahn, P7 Rally in aluminum prices boosts outlook for Hindalco Any bauxite-led cost push could help firm; Novelis witnessing strong demand in all segments; EPS for FY22-23e raised by 7-13%; target price up to `610 from `560; ‘Buy’ retained ■ Investor, P7 QuickPicks G-Sec listing on global indices soon: Principal economic adviser PREPARATORY WORK for the inclusion of certain categories of government securities on global bond indices is almost over and some announcement on this plan is expected this fiscal, principal economic adviser Sanjeev Sanyal said on Friday, reports fe Bureau in New Delhi. Separately, Anand Mohan Bajaj, additional secretary in department of economic affairs, said the Centre is working on establishing a ‘backstop facility’ to deepen the corporate bond market. PAGE 6 Moody’s: Telecom reforms package to support 3+1 players structure THE TELECOM sector reforms package announced by the government will sustain telcos' businesses, is credit-positive for operators, including Airtel and Reliance Jio, and provides support for 3+1 players structure, Moody's Investors Service said on Friday, reports PTI. The views come against the backdrop of a detailed relief package announced earlier this week by the government for the telecom sector. PAGE 4 Corporate bond yields ease on demand from MFs, insurers YIELDS ON corporate bonds eased marginally in a week across tenors due to a strong appetite from mutual funds and insurance companies, reports Manish M Suvarna in Mumbai. Additionally, banks have also been buying these papers in the secondary market due to the surplus liquidity in the banking system. Yields on corporate bonds maturing in three years moderated 5-7 basis points, but rebounded marginally after some investors booked profit on September 16. PAGE 6 Serum to pick 15% stake in Biocon arm FE BUREAU Pune, September 17 BIOCON BIOLOGICS, A subsidiary of Biocon, and Serum Institute Life Sciences (SILS), an arm of Adar Poonawalla’s Serum Institute of India, announced a strategic alliance on Friday. Under the terms of agreement, Biocon Biologics will offer approximately 15% stake in the company to Serum at a post-money valuation of $4.9 billion. In return, Biocon Biologics will get access to 100 million doses of vaccines per annum for 15 years. Biocon will have the commercialisation rights of the SILS vaccine portfolio that starts with the Covid-19 vaccines — both Covishield and Novavax — and whatever new vaccines get commercialised. Serum CEO Poonawalla will get a seat on the board of Biocon Biologics. As per the terms, Biocon Joining hands Biocon Biologics to offer approx 15% stake to Serum Institute at postmoney valuation of $4.9 bn Biocon, in return, will get access to 100 million doses of vaccines per annum for 15 years ■ Serum CEO Adar Poonawalla to get a seat on Biocon Biologics board ■ Chairperson Kiran Mazumdar-Shaw said the firm will foray into infectious diseases segment by leveraging Serum's expertise Biologics will generate a committed revenue stream and related margins,commencing from the second half of FY23. Continued on Page 2 Awaiting WHO nod for shot: Bharat Biotech BHARAT BIOTECH on Friday said it has submitted all the data on its Covid-19vaccine Covaxin to WHO for emergency use listing (EUL) and is awaiting feedback from the global health watchdog,reports PTI. The WHO is currently reviewing the data submittedbythevaccinemakerand the date fora decision on the jab is yet “to be confirmed”, according to the update available onWHO website. ■ Page 4 SOLAR POWER RIL,Adani among 18 bidders for renewables PLI Firms eye incentives Greener pastures The PLI scheme for the to cut down imports; renewable energy sector will offer incentives worth Tata Power, two US firms also keen `4,500 crore RAJESH KUMAR SINGH September 17 COMPANIES LED BYthecountry’s richest tycoons have sought incentives to manufacture solar power equipment locallyunderagovernment-led effort to reduce imports from Chinawhile also curbing emissions. At least 18 bidders — ranging from Reliance Industries led by Mukesh Ambani to billionaire Gautam Adani’s Adani Group — applied for `4,500 crore in productionlinked incentives,according to peoplefamiliarwiththedetails. That comes as the government steps up efforts to boost domestic manufacturing of items needed to meet its climate targets, including solar power equipment, afterimports from Chinawere last year hit by the Covid-19 pandemic. Other companies to bid included Tata Power and two US companies, First Solar Inc Modest moves AGENCIES Sensex stays above 59K, rupee inches up Markets surged to fresh lifetime peaks on Friday, but finished with modest losses, snapping a threesession winning streak. During the day, Sensex surged to a lifetime high of 59,737.32, while Nifty touched an intra-day record of 17,792.95. The rupee closed 4 paise higher against the dollar, tracking a broad weakness in the greenback overseas. Sensex 59,800 59,600 59,400 59,200 59,000 58,800 Intra-day, September 17 59,409.98 59,015.89 Previous close 59,141.16 Open Close `/$ 73.40 73.44 Intra-day, September 17 "Central Asia’s vast economic potential has remained untapped because of radicalisation and extremism. If the region wants to benefit from fossil fuels or intra-SCO trade, we will need to lay more emphasis on connectivity." —PM NARENDRA MODI AT SCO MEET ating environment,though the militant group has said it wantedcontinueeconomicand political tieswith India. Modi, who was addressing the Shanghai Cooperation Organization, or SCO, said central Asian countries would benefit from connecting with India’s to more than quadruple renewable power capacity to 450 GW by end of the decade and CubicPVTechnologies Inc. Thewinnerswillbeannounced in the secondweek of October, said the people,who asked not to be named. Continued on Page 2 ● NEW AVENUE Sachin Bansal's Navi MF plans fund for EVs PRESS TRUST OF INDIA New Delhi, September 17 Continued on Page 2 Close Central Asian nations can benefit by connecting with Chabahar port: PM CENTRALASIAN COUNTRIES could unlock their vast economic potential by connecting with the Chabahar port in Iran, Prime Minister Narendra Modi said,making a case for India to push for stronger trade links in a region that has seen investments pouring in from China. The Chabahar port, which took years to build, was supposed to open up an important routetoconnectAfghanistanto Central Asia while bypassing Pakistan. With the Taliban in power in Afghanistan, the port couldfaceamoredifficultoper- ■ Govt has set a target Continued on Page 2 Open SCO ADDRESS ARCHANA CHAUDHARY September 17 ■ Tata Power, and two US firms First Solar Inc and CubicPV Technologies have also applied vastmarket. “CentralAsia’svast economic potential has remaineduntappedbecauseofradicalisation and extremism,” Modi said in a speech delivered via video link at the SCO meeting inTajikistan. Previous close 73.52 73.52 Ambani's Reliance Industries and Gautam Adani's Adani Group have shown interest AFTER FILING PAPERS for over10 newschemeswith Sebi last month, Sachin Bansalbacked Navi Mutual Fund has filed draft documents for four more funds,including an electric vehicles fund. Mostofthedocumentshave beenfiledforpassivelymanaged funds as the fund house seems to be looking to make a place in thiscategory.Thereasonfortiltingtowardspassivefundscould be that they are easy to understand and cost-effective. The fund house has filed papers with Sebi to launch an electric vehicles fund — Navi Electric Vehicles and Driving Technology Fund of Fund (FoF) — an update with the markets regulatorshowed on Friday. “Theinvestmentobjectiveof the scheme is to provide longterm capital appreciation by investing in units of overseas ETFs (exchange traded funds and/or index funds that invest in electric vehicles and driving technology,” the draft documents showed. The fund of funds will be benchmarked against the STOXX Global ElectricVehicles&DrivingTechnologyNETIndex. 73.48 73.48 73.56 Inverted scale 73.49 ■ Mukesh PRIVACY CONCERNS Musk vows to work with global regulators on data security REUTERS Shanghai, September 17 SOME SETBACKS ELECTRIC VEHICLE (EV) makerTesla Inc will work with global regulators to ensure data security, chief executive Elon Musk told an industry event in China on Friday. Tesla, which assembles vehicles for the Chinese market in Shanghai, has been under scrutiny in China this year over its storage and for the Chinese market in Shanghai ■ Tesla assembles vehicles ■ It has been under scrutiny in China this year over its storage and handling of customer data ■ In May, staff at some Chinese govt offices had been told not to park their Tesla cars inside govt compounds due to security concerns Tesla later said it had established a site in China to store car data locally Elon Musk handling of customer data. Cars are being fitted with an ever-increasing array of sensors and cameras to assist drivers but the data such equipment generates has also raised questions about privacy and security. “With the rapid growth of autonomousdrivingtechnologies,data securityofvehicles is drawing more public concerns than ever before,” Musk told the World New Energy Vehicle Congress on the southern Chinese island of Hainan through a videolink. In May, Reuters had reported that employees at some Chinese government offices had been told not to park their Tesla cars inside government compounds due to security concerns over vehicle cameras. Tesla latersaid it had established a site in China to store car data locally. HYDERABAD
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.