OPINION, P6 ECONOMY, P2 PRASANNA BALACHANDER RBI can let yields nudge a bit higher given current growth-inflation dynamic INTERNATIONAL, P8 EDITORIAL FM-SPEAK PRECISION PRIZE Moody’s bets on sustained recovery; govt, RBI steered India deftly through Covid India in last stage of finalising details on global minimum tax Creators of 'greener' way to build molecules win Chemistry Nobel CHENNAI/KOCHI, THURSDAY, OCTOBER 7, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLIII NO. 130, 12 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: 59,189.73 ▼ 555.15 NIFTY: 17,646 ▼ 176.30 NIKKEI 225: 27,528.87 ▼ 293.25 HANG SENG: 23,966.49 ▼ 137.66 `/$: 74.98 ▼ 0.53 `/€: 86.55 ▼ 0.16 BRENT: $81.73 ▼ $0.83 GOLD: `46,663 ▲ `201 IN THE NEWS Moody's outlook stable for 18 corporates, banks MOODY'S INVESTORS SERVICE on Wednesday raised the rating outlook for 18 Indian corporates and banks, including RIL, Infosys, SBI and Axis Bank, to 'stable' from 'negative', reports PTI. This follows the upgrade by the USbased rating agency in India's sovereign rating outlook to 'stable' from 'negative' on Tuesday. RoDTEP extension to SEZs, export units in pipeline EXTENSION OF BENEFITS of the RoDTEP scheme to special economic zones and export-oriented units (EOUs) is in the pipeline to make SEZs more investor-friendly, a senior government official said on Tuesday, reports PTI. Bharat Biotech submits data on kids vaccine trial BHARAT BIOTECH SAID on Wednesday it had submitted data from its Covid-19 vaccine trial in children aged 2 to 18 years to the Drugs Controller General of India (DCGI), becoming the country’s first company to have tested its shot in very young children, reports PTI. INVESCO PLEA ZEE in NCLAT, seeks more time to reply FE BUREAU Mumbai, October 6 INAFRESHtwist,ZeeEntertainment Enterprises (ZEEL) on WednesdaymovedtheNational Company Law Appellate Tribunal (NCLAT)seeking “more time”tofileitsreplywithregard tothepetitionfiledbyitsshareholderInvescoDevelopingMarket Funds for convening the extraordinary general meeting of the company (EGM). The companyhasalsosoughtstayof the proceedings at the National Company Law Tribunal,till the appellate tribunal gives its final order.Thepetitionisexpectedto come up for hearing before the NCLATonThursday. The move follows a direction by the NCLT on Tuesday asking ZEEL to file its reply within two days, meaning by October 7. TO BE NOTED NCLT on Tuesday had asked ZEE to file its reply in the EGM matter by October 7 STITCH IN TIME Mega textile parks to boost exports, jobs Cabinet approves 7 parks under PM-Mitra; Centre to provide `4,445-cr capital support over 5 years, states to pitch in with land WEAVING A NEW DREAM CRUDE SHOCK Oil hits multi-year high of over $83 Brent ($/bbl) ALEX LAWLER London, October 6 Intra-day, Sept 6 83.5 structure; states will pitch in withtherequisiteland,likelyin areas close to sea ports. OIL DROPPED ON Wednesday after hitting a multi-year high above$83abarrel,pressuredby an American Petroleum Institute(API)reportshowingrising crudeinventoriesintheUSand technicalindicatorssuggesting prices have rallied too fast. The latest surge in the price wasunderpinnedbytherefusal of the Organization of the PetroleumExportingCountries andalliestoboostoutputfaster and comes against a backdrop of concern about tight energy supply globally. On Monday, OPEC+chosetostaywithaplan to increase output gradually and not boost it further as the USandotherconsumernations have been urging. Brent crude rose to $83.47, thehighestsinceOctober2018, Continued on Page 2 Continued on Page 2 `/$ 10-year bond yield (%) Zee open to rival offers to Sony’s bid Eye on mega IPO: Government plans to allow 20% FDI in LIC 74.50 ZEEL HAS SAID a potential mergerwiththeIndiaunitof Sony Group is the best deal on the table,but it is open to offerfromotherbidderseven asitfacesresistancefromkey shareholders, reports Bloomberg.“This is the best THE GOVERNMENT IS considering a proposal forforeign investors to own as much as 20% in Life Insurance Corporation, accordingtoapersonwithknowledgeofthematter, which would enable them to participate in the nation’s biggest initial public offering, reports Bloomberg. Under discussion is a plantoamendFDIrulessothatinvestorscan Zee counsels had sought more time NCLT declined stating that a simple counter reply was needed Matter likely to come up for hearing in NCLAT today Continued on Page 2 deal for shareholders at this point in time aswe are interestedinmaximisationofvalues for all our stakeholders including shareholders, the company and consuming public,”company’schairman R Gopalan said. ■ Page 4 Special Feature INDIA'S HIGH-POTENTIAL BUT highly fragmented and underachieving textile industry will get a shot in the arm with the Union Cabinet approving a scheme of seven mega textiles-and-apparel parks, to be supported by both the Centre and the respective state governments. The Centre will incentivise Auto fuel rates at new highs: No respite seen if taxes aren't reduced ■ State governments have to make available contiguous land parcel of 1,000+ acres for each park Development Capital Support of up to `500 crore for all greenfield PMMITRA parks The Dell Technologies and MeitY Start-up Hub collaboration will help Indian startups by providing mentorship and training for their upskilling, tech support and more. ■ eFE, P7 Watch over your loved ones with Godrej Spotlight camera Godrej Spotlight PT is an affordable wireless home security camera that installs in minutes, delivers good quality video and is packed with features typically found in pricier models. ■ Gadgets, P7 QuickPicks Videocon lenders say NCLAT can allow CoC to review decision REFUTING THE contention that a resolution plan once approved cannot be reconsidered ‘untenable’, lenders to the bankrupt Videocon Industries on Wednesday said it was very much within the powers of NCLAT or the adjudicating authority (NCLT) to allow the committee of creditors to reconsider the decision, reports Surya Sarathi Ray in New Delhi. Solicitor General Tushar Mehta, appearing for CoC, said the power to revoke the approval is inherent within the power to approve of the CoC as well, even as the IBC did not expressly state so. PAGE 4 Foreign banks move in for bigger slice of India’s home loan market TAKING ADVANTAGE of record low interest rates and higher affordability of homes, foreign banks with a presence in India are making an aggressive push into the home loan market, reports Shritama Bose in Mumbai. In the run-up to the festive season, some of them have announced lending rates on par with the lowest in the business. HSBC India reduced its home loan rates by 10 bps to 6.45% per annum. Citi is offering home loans starting at 6.5% as is South Korea-headquartered Shinhan Bank. PAGE 9 Chip shortage hurting festive spirit for electronics, auto firms THE GLOBAL semiconductor shortage is hitting the Indian mobiles, consumer electronics and auto sectors hard in the midst of the festive season, reports PTI. While customers usually get bargain deals or handsome festive discounts during this period, this time they are paying higher for a host of items ranging from mobile handsets and TVs to cars due to the chip shortage. Freebies have vanished from most of the auto showrooms. PAGE 2 Retail auto fuel rates touched new all-time high on Wednesday. With global crude prices ruling at threeyear high levels, and being seen on the rise, unless the taxes on the fuels are reduced, the chance of any relief to the consumers seem remote in the near term. `300 crore to be provided as competitiveness incentive support for early establishment of manufacturing units creation of these facilities, aimed at building scale across the textiles-to-garmentsvalue chainviagenerouscapitalsupport to build common infra- FE BUREAU 103.5 Petrol price in 103.0 Delhi (`/litre) 102.5 102.0 102.94 101.84 101.5 100.5 85 80 75 73.43 Aug 1, 2021 Oct 6, 2021 80.49 70 Crude oil prices 65 Indian basket ($/bbl) 60 55 August 2, 2021 October 5, 2021 ● INTERVIEW: SP MUKHERJEE, head, wage panel ‘Any wage hike should also be seen from industry’s perspective’ The government has recently reconstituted expert group on statutoryminimumwagesunder statistician SP Mukherjee.The 9-memberpanel’s mandate is to makerecommendationsonminimum wages and national floor wages as mandated in the Code on Wages passed by Parliament in 2019. In an interview with Surya Sarathi Ray, Mukherjee talksaboutthecriterialikelytobe followed in determining minimum wages.Excerpts: The wage code gives legislative backing to the minimum wages for each and every worker in the country. What are the criteria to be followed to determine the wage thresholds fordifferent categories of work? Brownfield sites: DCS of 30% of project cost of balance infra, other support facilities to be given subject to a cap of `200 cr We have thought of three criteria. First, we have to see how an increment in the minimum wage could impact the industry.This is because if it is raisedsteeply,thennot justthe employer will suffer but the employee mayalso end up losing her job. Secondly, we have to see the impact of the rise in wages on industrial disputes andresolutions.Thisiskeeping in view the bigger industrial units. Any exceptional wage rise may lead to a growing numberof industrial disputes. Continued on Page 2 Intra-day, Sept 6 Inverted scale 74.40 74.70 74.98 74.63 82.16 81.5 Previous close: 82.56 Open @4:23 PM and at 1335 GMTwas down 98 cents, or 1.2%, at $81.58. US crude climbed to $79.78, the highest since November 2014, before retreating to trade 71 cents lowerat $78.22. Intra-day, Sept 6 6.290 6.277 6.280 6.260 Previous close: 74.45 Open Close ■ Crypto exchange raises $260 m from Andreessen ■ Second crypto exchange to achieve the unicorn status after rival Coindcx Kuber launched India operations in June 2020 Open Previous close: 6.259 Close Coal ministry says in process of finalising mine closure framework PRESS TRUST OF INDIA New Delhi, October 6 Horowitz (a16z), Coinbase, existing investors ■ Coinswitch 6.255 6.262 ● WORK IN PROGRESS ■ It has 10Of m users which 7m classified as monthly active early pioneers of creating a crypto economy and operates one of the world’s largest crypto exchanges, as per the statement. Continued on Page 2 Good Glamm Group buys The Moms Co GOOD GLAMM GROUP, which operates brands like POPxo and BabyChakra, on Wednesday said it has acquiredTheMomsCoforanundisclosed amount,reports PTI. With this,The Moms Co aims to grow to a `500-crore rev- 82.0 6.265 Coinswitch Kuber becomes unicorn COINSWITCH KUBER ON Wednesday said it has raised $260 million (around `1,943 crore) in a fundraising round that values it at $1.9 billion. The company becomes the second crypto exchange to achieve the unicorn status after rival Coindcx, even as deep concerns on the crypto currencies among the regulators continue.In business parlance, a unicorn is a privately held start-up company valued at over $1 billion. Coinswitch Kuber said it has raised money from Andreessen Horowitz (a16z), Coinbase Ventures and existing investors Paradigm,Ribbit Capital, Sequoia Capital India and Tiger Global. ‘a16z’ is a venture capital firm known to back bold entrepreneurs building the future through technology while Coinbase is one of the 82.5 6.270 74.90 75.10 82.57 6.275 74.80 75.00 83.0 6.285 74.60 $1.9-BN VALUATION PRESS TRUST OF INDIA Mumbai, October 6 101.0 100.0 ■ Expected to create 7 lakh direct employment and indirect employment double that level; Centre open to support more such parks pick up the stake without the government’s approval under the so-called automatic route,the person said,asking not to be identified as the deliberations are private. WhileFDIofasmuchas74%ispermitted inmostIndianinsurers,therulesdon’tapply to LIC because it is a special entity created by anAct of Parliament. ■ Page 2 Relentless rise Nurturing startups with tech support and mentoring FE BUREAU New Delhi, October 6 ■ Mega textile parks to be in states offering maximum incentives on land, labour, electricity and labour compliance enue run rate in the next two years. The brand is also expandingtotheUSandWest Asiaoverthenextmonth.This acquisition is the first by the company after MyGlamm announced the formation of Good Glamm Group. THE COAL MINISTRY on Wednesday said it is in the process of finalising a robust mine closure framework on three major aspects — institutional governance, people and communities, and environmental reclamation and land re-purposing on the principles of just transition. The ministryis in consultation with the World Bank for obtaining support and assistance in this programme, the coal ministry said in a statement. Vast experience of the World Bank in handling mine closure cases in different countries will be highly beneficial and will facilitate the adoption of the best practices and standards in handling mine closure cases. A preliminary project report (PPR) for the proposed engagement with the World Bank has been submitted to the finance ministry for the necessary approvals. The process of re-purposing of closed mines sites has already been set in motion by the sustainable development cell of the coal ministry. Continued on Page 2 GREEN SIGNAL Google wants to use AI to time traffic lights more efficiently PARESH DAVE October 6 GOOGLE CUT FUEL use and traffic delays by 10% to 20% at four locations in Israel by using artificial intelligence to optimise signal lights and it next plans to test the software in Rio de Janeiro. The earlyphase research project is among new software initiatives inside Google to combat climate change.Some employees aswellasadvocacygroupshave called on the company, the world’s third-mostvaluable,to moreurgentlyuseitsinfluence to combat the crisis. While Google has not addressed critics’ calls to stop sellingtechnologytooilcompanies orfunding lawmakerswho denyglobalwarming,it has prioritised sustainability features. Google plans in the coming weeks to allow its Nest thermostat users to buy renewable energy credits for $10 a month tooffsetemissionsfromheating and cooling. Credits will come fromprojectsinTexasincluding ■ Thiswas done to optimise signal Google cut fuel use and lights and it next plans to test the software in Rio deJaneiro traffic delays by 10-20% at four ■ Early-phase research locations in Israel project is among new by using AI software initiatives inside Google to combat climate change BethelWindFarmandRoseland Solar.Amajorityofthefundswill go toward credit purchases and utility-bill payment costs, Some employees/ advocacy groups called on Google to more urgently use its influence to combat the crisis Google said,without elaborating on the remainder. Continued on Page 2 Green makeover to Search and Maps THE NEXT TIME you search onGoogleforadishwasheror dryer, you may see a new energy-efficient option on the screen, reports Bloomberg.Lookupdriving directions on Google Maps, and apathwillappear,witha tiny leaf, showing the most fuel-efficient route. These features are part of a barrage of updates Google introduced on Wednesday designed to steer people toward more environmental-friendlydecisions. The overhauls include features for consumer searches on flights, hotels, finance, home appliances and electric vehicles. Google is also revamping search results for queries related to climate change. ■ Page 8 CHENNAI/KOCHI
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