NATION, P3 & 5 ECONOMY, P2 FCA BOOST Forex reserves rise by $2.039 billion to $639.5 billion INTERNATIONAL, P6 MARKET MOVE DRUGS SEIZURE PROPERTY CRISIS Sebi constitutes fourmember high-powered advisory committee on settlement orders Tehran unhappy over Adani Ports’ decision to not handle its cargo China breaks silence on Evergrande, says risks controllable MUMBAI, SATURDAY, OCTOBER 16, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. LXI NO. 244, 8 PAGES, `10.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E *SENSEX: 61,305.95 ▲ 568.90 *NIFTY: 18,338.55 ▲ 176.80 NIKKEI 225: 29,068.63 ▲ 517.70 HANG SENG: 25,330.96 ▲ 368.37 *`/$: 75.26 ▲ 0.11 *`/€: 87.38 ▼ 0.26 BRENT: $84.95 ▲ $0.95 GOLD: `47,899 < > `00 — IN THE NEWS Coal output from captive mines to go to power sector THE COAL MINISTRY on Friday said it has taken various measures, including diverting the output from captive coal mines, to augment fuel supply to the power sector, reports PTI. The development assumes significance in the wake of country's power plants grappling with coal shortages. India notifies raw sugar exports to US under TRQ THE GOVERNMENT ON Friday permitted export of 8,424 tonne of raw or white sugar under tariff-rate quota (TRQ ) to the US, which enables shipments to enjoy relatively low tariff, reports PTI. TRQ is a quota for a volume that enters the US at relatively low tariffs. After the quota is reached, a higher tariff applies on additional imports. Export curbs on diagnostic kits, reagents removed WITH COVID CASES coming down, the Centre on Friday removed export curbs on all diagnostic kits and reagents including instruments, which are used in detection of Covid infections, reports PTI. INDO-US MEET Sitharaman,Yellen for ‘supportive policies’ until firm recovery Joint statement comes amid mounting anxiety over potential taper tantrum FE BUREAU New Delhi, October 15 INDIA AND THE US have underscored the need for maintaining “supportive policies” until a strong and inclusive economic recovery is “firmly entrenched”. Finance minister Nirmala Sitharaman and US treasury secretaryJanetYellenacknowledged the devastation caused bythe Covid-19 pandemic and sought to bolster bilateral cooperation,at the eighth IndiaUSA Economic and Financial Partnership meeting, held in Washington on Thursday. It was also attended by Federal Reserve chairman Jerome Powell and Reserve Bank of India governor Shaktikanta Das,among others. The joint statement comes amid mounting anxiety globally overpotential taper tantrum once the US Federal Reserve begins to scale back its $120-billion-a-month quan- Close co-operation FM, US treasury secy called for strict implementation of FATF standards FATF has retained Pakistan on its 'grey list' for failing to check money laundering At an IMF meeting, FM flagged vaccine inequity between lowincome and advanced nations She stressed differentiated, responsibility for countries to address climate change titative easing, with many analysts expecting it to be as early as in November. In India,however,both the government and the central bank have hinted at an extended period of growthsupporting interventions. Continued on Page 2 MILITARY MIGHT Indigenisation push: 7 defence CPSEs created PM says the new companies, carved out of OFB, to have strong R&D focus FE BUREAU New Delhi, October 15 WHILE CENTRAL PUBLIC sector enterprises (CPSEs) in non-strategic sectors are progressively being privatised or wound up and even many public sector banks (PSBs) are also going to be in private hands,newstate-owned firms are being born in the defence sector. Prime minister Narendra Modi on Fiday announced creation of seven state-run defence companies that will enjoy full functional autonomy and have decisive R&D orientation. The assets of the over 200year-old Ordnance Factory Board (OFB), including its 41 ordnance factories have been transferred to the seven new firms while OFB will cease to exist. “There is more transparency,trust and technologydriven approach in India’s defence sector now than ever before and major reforms are taking place for the first time since Independencewhile dis- MAKE IN INDIA Seven new defence PSUs carved out of200plus-years-old Ordnance Factory Board,which will be dissolved. These PSUs have 75,000 employees, 41 production units, assets over `79,000 crore and current order book of over `65,000 crore Govt aims a turnover of `1.75 lakh crore in domestic defence goods and services by 2024, including exports of `35,000 crore The new companies would play an important role in import substitution. An order book of more than `65,000 crore reflects the increasing confidence of the country in these companies... The government has given full functional autonomy and a better production environment to all the companies. — PRIME MINISTER NARENDRA MODI carding stagnant policies,” Modi said.The goal is to make the country the world’s biggest military power on its own,he reiterated. The new move is in sync with a series of announcements made over the last few years to promote private investments and indigenisation of India’s defence production. By July end this year, 333 ● FUND FACT Special Features The Continental GT: From the road to the race track Royal Enfield, famous for the leisure riding culture it has promoted over the years, has forayed into track racing; the company will soon hold the Continental GT Cup 2021 ■ Motobahn, P7 TPG investment is a positive surprise for Tata Motors Deal will address cash flow needs of the EV segment; strong demand and product cycle tailwinds should improve the firm’s balance sheet; TP raised to `539; ‘Buy’ maintained ■ Investor, P7 QuickPicks Govt says shocking that rank has been lowered on Hunger Index THE CENTRE on Friday said it was shocking that India's rank was lowered on the Global Hunger Index (GHI) and it termed the methodology used for rankings "unscientific", reports PTI. India slipped to 101st position in the 2021 Global Hunger Index ranking of 116 countries, from its 2020 position of 94th. It is now behind its neighbours Pakistan, Bangladesh and Nepal. The GHI report termed the level of hunger in the country "alarming". PAGE 3 US to lift curbs from Nov 8 for vaccinated foreign travellers THE WHITE House on Friday said it will lift Covid-19 travel restrictions for fully vaccinated foreign nationals effective November 8, ending historic restrictions that barred much of the world from the US, reports Reuters. Restrictions on non-US citizens were first imposed on air travellers from China in January 2020 by then-President Donald Trump and then extended to dozens of other countries, without any clear metrics for how and when to lift them. PAGE 6 Nomura says India stock market can withstand external shocks NOMURA HOLDINGS expects India’s markets to be resilient in the event of foreign investors suddenly getting cold feet, as local financial institutions and the retail investors flocking to invest will continue to lend their support, reports Bloomberg. “Even if there is a shock in one pillar like a downturn in the flow of foreign money, it will be complemented by the domestic institutions and retail investors,” Mangesh Ghogre, ED and head of equity capital markets at Nomura India, said. PAGE 4 Brent at fresh 3-year high, scales $85/bbl Forecasts of a supply deficit over the next few months SHADIA NASRALLA London, October 15 105 OIL PRICES HIT a fresh threeyear high on Friday, climbing above $85 a barrel on forecasts ofasupplydeficitoverthenext few months as rocketing gas and coal prices stoke a switch to oil products. Brentcrudefutureswereup 82 cents, or 0.98%, at $84.82 a barrel at 1333 GMT. Frontmonth prices, which earlier touched their highest since October 2018 at $85.10, are set to climb for the sixth straight week, heading for a 3% hike this week. USWestTexasIntermediate (WTI) crude futures rose 81 cents,or1%,to$82.12abarrel. 90 Brent ($/bbl) 86.29 84.85 75 60 45 30 15 0 19.33 Apr 21, 2020 Oct 3, 2018 Oct 15, 2021 The contract is heading for a 3.5% gain on the week, up for the eighth consecutiveweek. Continued on Page 2 Petrol, diesel prices rally to highest ever PETROLAND DIESEL prices on Friday rallied to their highest ever levels, as fuel rateswere hiked again by35 paise a litre,reports PTI. The price of petrol in Delhi rose to its highestever level of `105.14 a litre and `111.09 per litre in Mumbai. In Mumbai, diesel now comes for `101.78 a litre; while in Delhi, it costs `93.87. This is the second straight day of 35 paise a litre rise in petrol and diesel prices. ■ Page 2 PE inflows in real estate rise 24% in July-Sept Private equity investment in real estate rose 24% y-o-y to $477 million in JulySeptember but fell 45% as compared with the previous quarter. It had stood at $385 million a year ago and around $900 million in April-June. In its latest report 'India Investment Market Watch', Savills India attributed the temporary slowdown in investment activity to delayed decision-making by investors in the face of Covid. PRESS TRUST OF INDIA New Delhi, October 15 Continued on Page 2 Continued on Page 2 SUPPLY DEFICIT Realty check Tala raises $145 million in funding round led by Upstart FINTECH COMPANYTALA on Friday said it has raised $145 million in Series-E funding round,led byUpstartwith participation from the Stellar Development Foundation. NewinvestorsKindredVentures and The J Safra Group, along with existing investors including IVP, Revolution Growth, Lowercase Capital, and PayPal Ventures, also joined the round,which brings Tala’s total funding to over $350 million. “Tala will use the investment to accelerate the roll-out of its new financial account experience all through Tala’s consumer finance app. “Tala will also grow its world-classteamacrossKenya, India, the Philippines, Mexico and the US, and pull forward plans for both geographic and product expansion, including cryptoofferings,”thecompany said in a statement. The fintech company entered India in 2020 and claims to have already had more than half a million users sign up for the platform. private companieswere issued as many as 539 industrial licences for defence manufacturing, of which 110 companies commenced production. The Centre had also enhanced FDI in defence sector up to 74% via the automatic route for companies seeking newdefence industrial licence. *As on Oct 14 7.7 5.7 6.7 6.6 6 India PE investment in real estate ($ billion) 1.9 2016 2017 2018 2019 2020 Q1 Jul-Sept 2020 477 385 Jul-Sept 2021 q-o-q ($ million) 900 0.9 0.5 Q2 Q3 2021 $ Source: 'India Investment Market Watch', Savills India 45% y-o-y 24% Apr-Jun 2021 COAL SHORTAGE CIL to refrain from holding any e-auction till situation stabilises PRESS TRUST OF INDIA New Delhi, October 15 LUCY IN THE SKY The United Launch Alliance Atlas V rocket with the Lucy spacecraft aboard before its launch at Cape Canaveral Space Force Station, in Florida. Lucy will be the first spacecraft to study Jupiter’s Trojan Asteroids AMID THE LOW stock position at the electricity generating plants, state-owned CIL has asked its subsidiaries to refrain from conducting any further e-auction of coal, except special forward e-auction for the power sector, till the situation stabilises. The development assumes significanceasthesupplyofcoal isbeingprioritisedtothepower sector to replenish the dwindling stock in the wake of reports of an electricity crisis looming large.“...supply of coal CIL asks subsidiaries to not conduct any further e-auction Move in the wake of reports of power crisis Coal priority to power sector to replenish dwindling stock ■ Can only hold special forward eauction for power sector ■ CIL says it is augmenting production and off-take steadily isbeingprioritisedtothepower sector to replenish the dwindlingstock...coalcompaniesare advised to refrain from conducting of any further e-auctions of coal with the exception of special forward e-auction for the power sector, till the situation stabilises,” CIL said in a recentletterto its arms. Continued on Page 2 ● PAYMENT METHOD DATA PROTECTION Amazon challenges record $865-m EU fine S Korea targets Apple over new app store regulation STEPHANIE BODONI October 15 JOYCE LEE Seoul, October 15 AMAZON.COM APPEALED A record746-million-euro($865million) penalty for allegedly violating the European Union’s toughdata-protectionrules.The appeal was filed at the Luxembourg Administrative Tribunal on Friday,according to Luxembourg court spokesman Henri Eippers. The challenge comes afterCNPD,Luxembourg’sdata protection regulator, where AmazonhasitsEUbase,slapped CNPD, Luxembourg’s data safety regulator, slapped the fine in July Appeal was filed at the Luxembourg Administrative Tribunal ■ Charges are Amazon violated the bloc’s General Data Protection Regulation, GDPR theUStechgiantwiththefinein July.The regulator ruled that Amazon violated the bloc’s General DataProtectionRegu- ■ GDPR took effect in May 2018, allows to levy fines of as much as 4% of a firm’s annual global sales lation, or GDPR, through its processing of users’ personal data. The decision was triggered by a 2018 complaint from French privacy rights group La Quadrature du Net. The world’s biggest online retailer has drawn scrutiny in recent years for the vast trove of data it has amassed on a range of customers and partners, including independent merchantswhosellonitsretail marketplace,users of its Alexa digital assistant,and shoppers whose browsing and purchase history inform what Amazon shows them on its website. Continued on Page 2 APPLE WAS ON a collision course with South Korea on Friday over new requirements that it stop forcing app developers to use its payment systems, with an official warningofapossibleinvestigation into the iPhone maker’s compliance.The development comes afterSeoul amended the Telecommunication Business Act in August to try to curb the techmajors’marketdominance and stop the big app store operators such as Apple and Google fromchargingcommissions on in-app purchases. The law went into effect last month but Apple had told Seoul that it was already complying and did not need to change its app store policy, a Korea Communications Commission(KCC)officialincharge of the matter told Reuters. Continued on Page 2