OPINION, P6 COMPANIES, P4 BISWAJIT DHAR Better transport will help export growth, not ad hoc schemes INTERNATIONAL, P8 EDITORIAL MAKING WAVES GROWING TENSIONS Auto PLI's EV focus is great, but global OEM players will need more than just attractive incentives Optimistic of playing key role with 5G in India, says Huawei Biden tells UN that US is 'not seeking a new Cold War' with China HYDERABAD, WEDNESDAY, SEPTEMBER 22, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XVIII NO. 118, 18 PAGES, `6.00 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: 59,005.27 ▲ 514.34 NIFTY: 17,562.00 ▲ 165.10 NIKKEI 225: 29,839.71 ▼ 660.34 HANG SENG: 24,221.54 ▲ 122.40 `/$: 73.61 ▲ 0.13 `/€: 86.40 ▼ 0.08 BRENT: $74.51 ▲ $0.59 GOLD: `46,332 ▲ `183 INDIAWILL NOT buy Covid19 shots from Pfizer and Moderna, mainly because local output of more affordable and easier-to-store vaccines has jumped, reports Reuters. This means the globally popular shots won’t be available for now in the world's two most populous countries — China and India. Kharif grain output pegged at record 150.50 MT this year INDIA'S FOODGRAINS PRODUCTION in kharif season of 2021-22 crop year (July-June) has been estimated at a record 150.5 million tonne on the back of increased acreage under paddy and pulses, reports fe Bureau in New Delhi. Tata Motors to hike CV prices by 2% from October 1 TATA MOTORS ON Tuesday said it will increase prices of its commercial vehicle range by around 2% with effect from October 1, in order to offset the impact of rising input costs, reports PTI. Torrent Power buys 156 MWwind plant from CESC TORRENT POWER SAID on Tuesday that it has entered a share purchase pact to buy the entire stake in 156 MW of wind power plants from CESC at an estimated enterprise value of `790 crore, reports fe Bureau in New Delhi. Sebi disposes of proceedings against RIL SEBI HAS DISPOSED of adjudication proceedings without imposing any penalty on RIL in a matter related to alleged incorrect disclosure of diluted EPS in its financial results more than 13 years ago, reports PTI. GREEN GOALS Adani to invest $20 bn in renewable energy Foray into hydrogen, produce world’s cheapest green electron PRESS TRUST OF INDIA New Delhi, September 21 UNVEILING HIS INFRASTRUCTURE conglomerate’s green vision, billionaire Gautam Adani on Tuesday said his group will invest $20 billion over the next 10 years in renewable energy generation and component manufacturing and will produce the world’s cheapest green electron. The port-to-energy conglomerate plans to triple its renewable power generation capacity over the next four years, foray into green hydrogen production,power all data centreswithrenewableenergy, Growth Investing triple RE generation capacity over the next four years, from 21% now to a high of 63% ■ Foray into green hydrogen production, power all data centreswith renewable energy ■ Turn its ports into net carbon zero by 2025, to spend over 75% of capex until 2025 in green technologies turn its ports into net carbon zero by 2025, and plans to spend over 75% of capital expenditure until 2025 in green technologies,he said. Continued on Page 2 Finmin describes some proposals as ‘excessive’ and ‘without economic rationale’ ADITYA KALRA New Delhi, September 21 THEGOVERNMENT'SPLANto tighten rules on its fast-growing e-commerce market has run into internal government dissent, memos reviewed by Reuters show,with the finance ministry describing some proposals as“excessive”and“without economic rationale”. The memos offer a rare glimpse of high-stakes policymaking governing a market already featuring global retail heavyweights from Amazon to Walmart,plus domestic players ■ Finance ministry objects to 12 Flash sales see deep discounts on offer on websites like Amazon, especially during festive seasons curbs drafted by consumer affairs ministry ■ Finmin objects to proposal that makes online shopping websites liable for its sellers' mistakes ■ Says it would be a 'huge dampener', could force companies 'to revisit their basic business models' ■ It also lodged a protest against the banning of flash sales likeRILandTataGroup.ThesectorisforecastbyGrantThornton to be worth $188 billion by 2025. It’s not clear how the objections from the finance Consumer affairs ministry says rules needed in sector set to be worth $188 bn ministry — a dozen in total — will ultimately be reflected in the proposedrule changes. Continued on Page 2 Zee institutional investors may support call to remove directors RELIANCE INDUSTRIES IS likely to take over stressed polyester manufacturer JBF Industries in consortium with CFM Asset Reconstruction Company (ARC), two people aware of the matter told FE, reports Shritama A NUMBER OF institutional investors in Zee Entertainment Enterprises (ZEEL) are likelyto supportthecalltoremovethecompany’sdirectors at its extraordinary general meeting (EGM), sources have said, reports Rajesh Kurup in Mumbai. “The notice to the exchanges did not specify the exact reasons sought for the removal of Punit Goenka as Bose in Mumbai. Bankers had sought takeover bids in July, and the Ahmedabadbased CFM ARC is understood to have put in a `825crore bid for the company, which owes its lenders `2,116 crore. ■ Page 4 Mixed signals managingdirectorandthetwodirectors.While some of the proxy advisory firms had raised corporate governance issues,the institutional investors would like to scrutinise the allegations before taking a call,”a source said. In its report,brokerage firm Edelweiss had said that while the prospects for the company are improving,it is still avolatile story. ■ Page 4 DEFAULT FEARS Evergrande’s risks shift focus to likely rescue by Beijing So far, China shows no signs it would intervene to stem any domino effects across the globe CLARE JIM, ANSHUMAN DAGA & KANE WU Hong Kong/New York, September 21 PERSISTENT DEFAULT FEARS eclipsed efforts by China EvergrandeGroup’schairmantolift confidence in the embattled firm on Tuesday, as Beijing showed no signs itwould intervenetostemanydominoeffects across the globaleconomy. Analysts played down the threatofEvergrande’stroubles becoming the country’s “Lehman moment”, though concerns about the spillover risks of a messy collapse of what was once China’s topselling property developer have roiled markets. In an effort to revive battered confidence in the firm, Evergrande chairman Hui KaYuan said in a letter to staff the company is confident itwill"walk out of its darkest moment" and deliver property projects as pledged. Uday Kotak @udaykotak Evergrande seems like China’s Lehman moment. Reminds us of IL&FS. Indian Government acted swiftly. Provided calm to financial markets. The Government appointed board estimates 61% recovery at IL&FS. Evergrande bonds in China trading ~ 25 cents to a $. In the letter, coinciding with China’s mid-autumn festival,the chairman of the debtladen property developer, also said Evergrande will fulfil responsibilities to property buyers,investors,partners and financial institutions. Continued on Page 2 FE BUREAU Business resumption plateaus in September The Nomura India Business Resumption Index eased to 100.6 for the week ended September 19 from 101.4 the prior week, although still above its pre-pandemic level (100). Mobility continues to improve, but other real economy indicators struggle 110 Nomura India business 100 resumption index (NIBRI) 90 80.9 80 60 50 40 94.2 95 102.8 100.6 68 69.8 70 44.9 DEMAND SEEN Go for growth-adjusted value investment strategy P/E ratio P/B ratio ■ Targets to Plan to rein in e-comm faces internal dissent RIL set to take over JBF with CFM ARC Special Feature Value Investing Investment to be over the next 10 years in RE generation and component manufacturing SRTICTER RULES Mar 1 Mar 22 Apr 12 May 3 May 24 Jun 14 Jul 5 Jul 26 Aug 16 Sep 6 Sep 27 Oct 18 Nov 8 Nov 29 Dec 20 Jan 10 Jan 31 Feb 21 Mar 14 Apr 4 Apr 25 May 16 Jun 6 Jun 27 Jul 18 Aug 8 Aug 29 Sep 19 IN THE NEWS Moderna, Pfizer shots may not see India entry for now Sustainable growth potential combined with value offer the best opportunity to earn higher and stable returns. Focus on firms which have high & sustainable growth potential for a longer run ■ Personal Finance, P7 QuickPicks Agri exports jump 22% to $7.9 billion in April-August EXPORTS OF 37 agriculture and processed products, promoted by Apeda, jumped 22% to $7.9 billion during first five months of the current fiscal from year-ago period on robust demand for rice and other cereals as well as meat, dairy and poultry products, reports fe Bureau in New Delhi. Exports of these products grew 24% to $20 billion during FY21 on a low base; though the year saw Covid, global prices of the most items remained elevated. Apeda is eyeing 10-15% rise in exports this year; the estimate is conservative because a possible decline in global prices is factored in. PAGE 2 FPI investment so far in Sept is highest this financial year IN THE current financial year, September saw the highest amount of foreign portfolio investments so far, but inflows into debt remained tepid compared to the equities, reports Manish M Suvarna in Mumbai. According to the NSDL data, foreign portfolio investors (FPIs) invested `13,163 crore into equities and `5,423 crore in debt up until September 21. Between September 1 and 21, the net investment into debt by FPIs stood at `12,144 crore in August. In August, investments by FPIs stood at `16,556 crore. PAGE 9 Loan guarantee to stay through FY22 BANIKINKAR PATTANAYAK New Delhi, September 21 THE GOVERNMENT WILL likely extend the validity of its `4.5-lakh-crore guaranteed loan scheme for companies and individuals by six months through March 2022 to enable a wider pool of businesses to take advantage of it, sources told FE.“There is also a chance that initially, it may be extended by three months through December 2021, which could be followed by another three-month extension,”one of the sources said. Disbursement under the EmergencyCreditLineGuarantee Scheme (ECLGS) hasn’t yet exceeded`3lakhcrore,whichis why its validity needs to be extended,bankingsourcessaid. Also, while expanding the scheme’s limit in June,the gov- EXTRA COMFORT ■ Bankers say offtake under ECLGS hasn’t yet crossed `3 lakh cr ■ In June, govt expanded the scheme’s limit by 50% to `4.5 lakh cr but didn't extend validity beyond Sept 30 ■ Extension to allow more firms, hit by the second wave, to tap the scheme ernment hadn't extended its validity,theyadded. Continued on Page 2 Repeal of coal mine leases again: Adani Power loses Jharkhand’s Jitpur block THE COAL MINISTRY has decided to cancel the allotment of Jharkhand’s Jitpur coal mine to Adani Power as thecompanycouldnotoperationalise the mine on time, reportsAnupamChatterjee in New Delhi. The Jitpur block was the first coal mine won by Adani Power in an auction, after submitting a closingbidof`302pertonne — payable to the state government — in March 2015. Earlier, the ministry had deallocated the Tokisud North and Ganeshpur mines in Jharkhand,which were with Essar Power and GMR Energy,respectively. ■ Page 2 HYDERABAD
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