OPINION, P6 ECONOMY, P2 ANUBHUTI SAHAY Jobs coming back, but purchasing power likely to stay low MARKETS, P9 EDITORIAL LOOKING AHEAD ‘NECESSARY GRANT’ Videocon bid and, now, lenders' U-turn show the latter defeating IBC spirit by slacking on recovery Post-pandemic world demands major skilling of workforce: Das Uday Kotak’s tenure at IL&FS helm extended by six months HYDERABAD, THURSDAY, SEPTEMBER 23, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XVIII NO. 119, 24 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: 58,927.33 ▼ 77.94 NIFTY: 17,546.65 ▼ 15.35 NIKKEI 225: 29,639.40 ▼ 200.31 HANG SENG: 24,221.54 ▲ 122.40 `/$: 73.87 ▼ 0.25 `/€: 86.64 ▼ 0.24 BRENT: $75.22 ▲ $0.86 GOLD: `46,637 ▲ `305 47.07% while Zee's stood at `8,100 cr conglomerates will not only boost business growth but will alsoenableshareholderstobenefit from its future successes,” ZEELchairman RGopalan said. Continued on Page 2 Continued on Page 21 20% Sony operating income at `1,300 cr; Zee's operating income for FY20 at `1,600 cr 290 Punit Goenka to get another 5 years 310 281.20 Pre close: 255.65 270 250 as CEO of the company post merger A MEDIA BEHEMOTH IN THE MAKING WITHTHESONYandZeemerger,thecombined entityislikelytobecomeaforcetoreckonwith, as ad rates across its platforms might surge, according to experts, reports Devina Joshi in Mumbai.Whatisunclearatthispoint,however, is whether independent digital and TV assets have a holding a 61.25% stake in the merged firm. However, following the fund infusion, SPNI will hold a majority 52.93% stake and the remaining47.07%stakewillbeheldby ZEELshareholders. will be retained or merged.It maybe a bit early to confirm for sure, as “these things take forever”,says a media analyst.Paritosh Joshi,principal,provocateuradvisory,drawsaparallelwith the Disney-21st Century Fox merger, which “was the slowest projectin history”. ■ Page 4 “ZEEL continues to chart a stronggrowthtrajectoryandthe board firmly believes that this merger will further benefit ZEEL.The value of the merged entity and the immense synergies drawn between both the KIRAN RATHEE & RISHI RAJ New Delhi, September 22 VODAFONE IDEA WILL soon go for a fundraising exercise andthecompany'sco-promoters will have the option and opportunitytoparticipateinit, CEO and managing director Ravinder Takkar said on Wednesday. He said that the recent telecom reforms unveiled by the government has addressed all investor concerns and opened the doorsfornewinvestments. “The enthusiasm and interest to invest in the sector has increased with the government's package,”Takkar said. Takkar told FE, in his first media interaction after the government announced a relief package for the telecom industryonSeptember15,that to what extent the co-promoterswill participate and inwhat ways is something which only they can answer,but they have TRADE BOOST Special Feature HP Probook 635 Aero: Plenty of power in a slim package The HP ProBook 635 Aero is a sleek and powerful laptop with an attractive display, powerful processor, great battery life and sufficient security features to keep you productive anywhere ■ Gadgets, P7 Vivo-Zeiss partnership: Just what the photographer needs Vivo and Zeiss take forward their global imaging tie-up with the launch ofvivo X70 series ahead of the festive season. The X70 series will help consolidate vivo’s position in the premium segment, says Nipun Marya ■ eFE, P7 QuickPicks FDI equity inflows rise 112% to $20.42 bn in April-July FOREIGN DIRECT investments into the country more than doubled to $20.42 billion during the April-July period of the current financial year, the commerce and industry ministry said on Wednesday, reports PTI. Total FDI inflow rose to $27.37 billion during the first four months of 2021-22. In the yearago period, the same was at $16.92 billion. Total FDI comprises equity inflows, reinvested earnings and other capital. Mumbai property registrations on rise, may break 10-year record MUMBAI RESIDENTIAL real estate is on an upswing, as property registrations recorded in the first 21 days of September show that the numbers have crossed the levels seen in September 2018, and is expected to break the record of the last decade, according to the report by Motilal Oswal Financial Services, reports Shubhra Tandon in Mumbai. The report says that over 6,000 units have been registered in the first 21 days of September, surpassing the September 2018 total of 5,913 units. It is pegged to cross 7,000 units — a record in the last decade. PAGE 4 DICGC asks 21 stressed co-op banks to make list of a/c holders THE RBI'S subsidiary DICGC has asked nearly two dozen stressed cooperative banks including PMC Bank to prepare a list of account holders eligible to receive Rs 5 lakh within 90 days, as part of its mandate under a new law, reports PTI. Last month, Parliament passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, ensuring that account holders get up to `5 lakh within 90 days of the RBI imposing a moratorium on banks. PAGE 9 INDIA AND ITS third-largest export market, the UAE, will begin formal negotiations for a “mutually-beneficial” comprehensive economic partnership agreement (CEPA) here fromThursday,commerce and industry minister Piyush Goyal said on Wednesday. Both the sides aim to wrap up negotiations by as early as December 2021 and sign a deal by March 2022 after the completion of internal legal procedures and necessaryratification processes, Goyal said. It would be the first free trade agreement (FTA) to be signed by India in just over a decade. TheproposedFTA,tobeformally called CEPA, is expected to raise bilateral merchandise trade to $100 billion in five years following the signing of the pact from about $43 bil- Industry Arpu first needs to touch `200 supported the company all along. “The promoters have invested`1.90lakhcroreinthe last 10years,so to saythat promoters are not being supportive is not correct,”Takkar said. Continued on Page 2 Fertiliser subsidy to rise by another `25,000 cr India's exports to UAE Imports from UAE PRASANTA SAHU & PRABHUDATTA MISHRA New Delhi, September 22 ($ billion) FY18 FY19 FY20 FY21 Source: DGCIS THAI TAXIS GO ‘GREEN’ Miniature gardens are seen on the roof of unused taxis due to the business crisis caused by the pandemic at a taxi garage in Bangkok, Thailand lion in FY21. It also aims to morethandoublebilateralservices trade to $15 billion during this period. Continued on Page 21 Vinod Rai voted out as non-executive and non-independent director of IDFC VINOD RAI, FORMER CAG, whosenamewasproposedfor thepostofnon-executiveand non-independentdirectoron theboardofdirectorsofIDFC, has failed to secure the place as 62.8% votes were cast againsttheresolution,reports fe Bureau in Mumbai. The Pricing will now start improving in the industry ● RISING GLOBAL RATES UAE FTA talks from today, deal by March FE BUREAU New Delhi, September 22 VILwill take the lead in raising tariffs at right time nomination for the position ofnon-executivedirectorwas for the period till May 22, 2023.IDFChadsoughtshareholders’nodforRai’sappointmentsincehewasanindependent director for two terms and could not be appointed forthe third term. ■ Page 5 CLEAN ENERGY Hero Electric calls for end to petrol two-wheeler sales in India by 2027 RAGINI SAXENA September 22 THE COUNTRY’S BIGGEST electric-scootermakerhascalled forthe nation to end sales of petrol-powered two-wheelers by2027tospeedupaswitchto clean vehicles that has fallen behindothercountrieslikeChina. “2027 would be a good time for new sales to be 100% electric,”Naveen Munjal,managing director, Hero Electric Naveen Munjal, MD, Hero Electric Vehicles Vehicles, said in an interview. “If we leave it to market forces then things come along at their own pace and the transition will be much slower than what it could be.” India’sshift toelectricvehicles has been hampered by high prices and a lack of charging infrastructure. Whereas China accounts for97% of the world’s e-scooter fleet, they make up less than 1% of total sales in India, according to BloombergNEF. Continued on Page 2 THE CENTRE WILL likely allocateanadditional`25,000crore as subsidy on fertilisers for the current fiscal to insulate farmers from rising global pricesofdiammoniumphosphate (DAP) and urea,official sources told FE.With this,the budgeted subsidy will be around `1.19 lakh crore against the BE of `79,530 crore.On June 16,the Centre had announced a `14,775-crore additional subsidy over and above the BE as it hiked the subsidy on DAP by 140% for the kharif season to ensure that sowing of summer crops were unaffected by the surgeinglobalpricesofthefertiliser,whichislargelyimported. Continued on Page 21 Subsidy on fertilisers (` crore) FY17 FY18 FY19 1,19,305 `5,800 cr post merger $1.57 bn Now there's no need for a floor price for tariffs 1,27,922 Sony's FY20 sales were at into merged entity Company maybe interested in examining paying interest dues as equity to govt 81,124 in merged entity 330 70,605 52.93% Zee can hike stake upto Takkar says all investor concerns addressed & there’s enthusiasm to invest in the sector 66,468 and Sony High: 355.40 Low : 281.20 FE BUREAU New Delhi, September 22 COMMERCE AND INDUSTRY minister Piyush Goyal on Wednesday launched a national single-window system, which aims to become a “one-stop shop” for investors to apply for various approvals and make it easier for them to set up units. Through the system, the government promises a single online interface to identify, seek and track various clearances from key departments. The idea is to spare investors the trouble of running from onedepartmenttotheotheror having to submit same sets of information across multiple platforms, for obtaining various permits. Moreover, they will get to know what all approvals are required for setting up a facility. Delay in various clearances and cumbersome application process have long discouraged large multi-national corporations from either investing in India or scaling up operations in the country,something that the government has been seeking to change. Sony to infuse Close 27% (Zee has 18% and Sony 9%) to surpass Star's 24% on BSE (`) Open Merged entity's market share at 350 Intra-day Post merger, Zee to hold 66,313 THE SUPREME COURT on Wednesday said that the Shree Padmanabha Swamy Temple Trust in Kerala's Thiruvananthapuram will face an audit of income and expenses for the last 25 years, reports fe Bureau in New Delhi. ZEE ENTERTAINMENT ENTERPRISES (ZEEL) onWednesday saidthatitsboardhasapproved a merger of the company with rival Sony Pictures Networks India (SPNI), a subsidiary of Japan’s SonyCorporation. Once this gets all the regulatoryand shareholderapprovals, it would create the country’s largest media and entertainment company. Both the companies, ZEEL and SNPI, have signed a non-binding term-sheet to combine their linear networks,digitalassets,production operations and programme libraries.The term-sheet provides an exclusive period of 90 days, duringwhichthecompanieswill conduct mutual diligence and finalise a definitive agreement, ZEELsaidinastatement. As part of the deal,SPNIwill also infuse about $1.58 billion in cash that could be used to pursue other growth opportunities,ZEELadded.Basedonthe estimated equity values of the two companies, ZEEL would Board of Zee Enterprises approves merger with Sony Pictures Networks India 370 Zee Entertainment Enterprise 337.1 VIL to raise funds, promoters can take part too: CEO 26.6 SC: Rich Kerala temple to face audit for 25 years FE BUREAU Mumbai, September 22 CONTOURS OFTHE DEAL Single-window approval system for investors launched FRESH START 16.7 INDIA'S CRUDE OIL production fell 2.3% in August but natural gas output rose by more than a fifth on the back of output from KG-D6 fields of Reliance-BP, reports PTI. Crude oil production dropped to 2.51 MT in August as output from fields operated by ONGC dipped. Sony Pictures to infuse $1.58 billion in merged entity 28.9 30.3 Crude production falls 2.3% in Aug, gas output rises ● 'ONE-STOP SHOP' Zee-Sony to create largest entertainment network 30.1 29.8 ALL CHILDREN AGED 12 or older will become eligible for Covid vaccinations from next month, when drug maker Cadila Healthcare launches its ZyCoV-D product, two sources with direct knowledge of the matter told Reuters. ZyCoV-D won emergency authorisation from Indian regulators last month. TAPPING SYNERGIES 28.1 21.7 IN THE NEWS Govt to target children for Covid vaccine from Oct FY20 FY21 FY22E* *The subsidy was increased by `14,775 crore from BE of `79,530 cr in June; Another `25,000 cr required to insulate farmers from rising prices of imported fertilisers FRESH UNCERTAINTY Evergrande filing on yuan bond interest leaves analysts guessing BLOOMBERG September 22 CHINA EVERGRANDE GROUP injected a fresh dose of uncertainty into financial marketswithavaguelyworded statement on a bond interest payment that left analysts grasping for details. Evergrande’sonshoreproperty unit said in an exchange filing on Wednesday that an interest payment due September 23 on one of its yuandenominated bonds“has been resolved via negotiations off the clearing house". But the unit didn’t specify how much interestwouldbepaidorwhen. The filing has triggered speculation among some analysts that Evergrande struck a deal with noteholders to postpone interest payments without having to label the move a default. Chinese companies typically pay interest on local bonds through a clearing house; when they arrange to pay noteholders directly, it’s Evergrande injected a fresh dose ofuncertainty into financial markets with an exchange filing Filing says an interest payment due Sept 23 on one ofits bonds 'has been resolved via negotiations offthe clearing house' ■ But the onshore property unit didn’t specify how much interestwould be paid orwhen ■ It has triggered speculation among some analysts that Evergrande struck a deal with noteholders ■ Deal could be to postpone interest paymentswithout having to label the move a default often because the companies can’t transfer the cash on time or in full, said Li Kai, Beijingbased founding partner of bond fund Shengao Investment.“Usually it will involve extension, payment in installment or a reduction in the coupon,”Li said.“This is one of the ways to avoid defaults by distressed companies.” Investors around the world are scrutinizing Evergrande’s everymoveas theytrytogauge whether the property giant’s cash crunch will lead to finan- cial and economic contagion. Whiletheknee-jerkreactionto Evergrande’s filing on Wednesdaywas positive,some risky assets later weakened, with the MSCI Asia Pacific Index falling as much as 0.7%. Calls to Evergrande seeking comment on the interest payment went unanswered. Billionaire Hui Ka Yan’s developer is widely seen as headed toward one of China’s largest-everdebtrestructurings. Continued on Page 21 HYDERABAD
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