OPINION, P6 ECONOMY, P2 EDITORIAL India must lead a coalition of nations with low per capita emission EXPANSION OF BASE GLOBAL RECOVERY Centre must frontload devolutions to the states; states can use the funds to prop up the recovery DEEPAK GUPTA INTERNATIONAL, P4 Customers can now subscribe to APY via Aadhaar eKYC: PFRDA At Rome summit, Biden seeks fixes for supply chain kinks NEW DELHI, MONDAY, NOVEMBER 1, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVII NO. 209, 22 PAGES, `8.00 (PATNA `8.00, RAIPUR `8.00) 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 MACRO VIEW TELECOM SPECTRUM Direct allocation set to return More proof of rebound but rising costs a threat Low capacity utilisation could delay private investments but consumption emerging from the gloom, govt spending stepped up too FE BUREAU New Delhi, October 31 THOUGH THERE IS no ample proof as yet of private investments picking up decisively, a slow recovery of consumption post the June quarter, as signalled by assorted high-frequency indicators such as a steadyriseininter-statetradein goods and services, increase in sales by organised-retail sector and a rather sharp rise in importshaveamplifiedthefeasibility of an all-encompassing economic rebound. A turnaroundisvisibleinmanufacturingandconstructionindustries as well, while some of the services sectors too are lookingup. Intheshortterm,thankfully, the government-sector could makeupforthestill-elusiveprivate investments. Continued on Page 2 ❚ NCAER Business Confidence ❚ NIBRI Index Business confidence 150 Political confidence 130 110 90 70 50 30 10 0 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2018-19 2019-20 2020-21 2021-22 Nomura India Business Resumption Index 120 110 100 90 80 70 60 50 40 Mar 15, ‘21 Oct 24, 2021 Source: Nomura Source: NCAER ❚ Purchasing Managers' Index ❚ Retail auto sales 80 60 49.3 51.8 40 Services 20 0 Manufacturing Mar 2020 (% chg, y-o-y) 16.3 80 Passenger vehicles 40 0 -87 53.7 -40 2-wheelers -80 -11.5 -120 -88.8 Sept 2021 May 2020 Sept 2021 55.2 Note: Reading below 50 suggests Note: April & May 21 compared with contraction and above it indicates expansion April & May 2019 Source: IHS Markit Source: FADA ❚ Electricity demand ❚ E-way bills generation (Million units) April 2021 May 2021 June 2021 July 2021 Aug 2021 Sept 2021 Oct 2021* 1,19,276 1,10,484 1,15,397 1,25,506 1,29,516 1,14,479 1,14,454 * Data till Oct 15, annualised Source: Ministry of power (crore; for week-ended) Aug 8 Aug 15 Aug 22 Aug 29 Sep 5 Sep 12 Sep 19 Sep 26 Oct 3 Oct 10 Oct 17 Oct 24 Source: GSTN 1.35 1.51 1.49 1.56 1.52 1.4 1.59 1.65 1.63 1.69 1.48 1.75 ❚ Centre's gross tax collections ❚ Exports April to September, ` crore) FY21 7,20,896 (% change,y-o-y) 200 195.7 150 11,83,808 100 FY22 50 % chg, y-o-y Source: CGA 64.2 Over FY21 17.6 29.9 Over FY20 22.6 Apr May Jun Jul Aug Sep 2021 Source: Ministry of commerce 0 Continued on Page 2 Joint statement lacks ‘concrete urgent action’ phase out coal power 'as soon possible' and effective action' for 1.5C climate goal LEADERS OFTHE Group of 20 major economies agreed on a finalstatementonSundaythat urges ‘meaningful and effective’ action to limit global warming but offers few concrete commitments. The statement repre- ■ G20 pledges to ■ Urges 'meaningful ■ Leaves huge work to be done at COP26 UN climate summit sented ‘half-measures’ rather than ‘concrete urgent action’, one non-governmental organisation said. The result of days of tough negotiation among diplomats leaves huge work to be done at a broader UN climate summit in Scotland, to where most of the G20 leaders will fly directly from Rome,and disappointed climate activists. Thestakesarehuge-among them the very survival of lowlying countries, the impact on economiclivelihoodstheworld over and the future stability of the global financial system. Continued on Page 2 OLA ELECTRIC has deferred the opening of its next purchase window for escooters to December 16 in a bid to fulfill its existing orders, reports Sajan C Kumar. The company had earlier scheduled the opening of the purchase window for November 1. PAGE 12 Captive coal output rises 35% in H1 ANUPAM CHATTERJEE New Delhi, October 31 COAL PRODUCTION FROM captivemineshaverecordedan impressive growth rate of 34.8%year-on-yearinthefirst half of the current fiscal year, with these blocks producing 33.2MTofthekeyfuel.Though Coal output Apr-Sept 2020-21 2021-22 (million tonne) % change y-o-y Captive mines Overall domestic production 24.6 34.8 33.2 282.3 « TO PROTECTTHE people taking bonafide business decisions,the finance ministryhas issued a uniform staff accountability framework for NPA accounts up to `50 crore. These guidelines shall be implementedwith effect from April 1, 2022, for accounts turning non-performing assets (NPAs) beginning next financial year. The Department of Financial Services (DFS), under the finance ministry, "vide its order dated October 29 advised broad guidelines to be adopted by all public sector banks (PSBs) on'StaffAccountability Framework for NPA Accounts up to `50 crore' (Other than Fraud Cases)", the Indian Banks'Association(IBA) said in a statement. Banks have been advised to revise their staff accountability policies based on these broad guidelines and frame the procedures with approval oftherespectiveboards,itsaid. The IBA, being a key stakeholder of the framework, was involved in the process right from the beginning. These guidelines will help quell apprehension that bankers could be hauled up for their bonafide commercial decision go wrong. It will also help bankerto take credit decisions faster and help support economy. G20 leaders offer little new on climate ahead of COP26 « PRESS TRUST OF INDIA New Delhi, October 31 MISSED OPPORTUNITY « New norms to protect bonafide decisions of bankers AP ● AS CIL FALTERS... Five IPOs to hit market Ola’s next purchase in first half of Nov window postponed AFTER A month long gap, the primary market is heading for a busy time, with five firms including Paytm parent One97 Communications and policybazaar parent PB Fintech have lined up their IPOs in the first half of November to raise over `27,000 crore collectively, reports PTI. PAGE 13 India's PM Narendra Modi (left) and other G20 leaders perform the traditional coin toss in front of the Trevi Fountain during an event for the G20 summit in Rome on Sunday. REUTERS Rome, October 31 QuickPicks ● WEF APRIL 1, 2022 KIRAN RATHEE New Delhi, October 31 315.7 11.8 captive coal still constitutes only10.5%ofthetotaldomesticcoalproduction,recentsteps by the government such as allowing sale of 50% captive coal in the open market will likely encourage these miners torampupproductionfurther. Continued on Page 2 THE DEPARTMENT OF telecommunications has started the process to examine whether allocation of spectrum can be done through administrativeprocessinaddition to the auction route. The exercise is currently at a very nascent stage but the need has been felt because the number of players in the telecomsector have reduced and there's no shortage of spectrum. As a result the need for price discovery of spectrum through auctions is not there anymore. Further, auctions are proving a hindrancewhen it comes to allocating spectrum for backhaul purposes, satellite communication, and private networks. Against this backdrop it is felt that multiple modes of spectrum allocation should be identified and laid down so that there's a clear policy roadmap. Why the need for administrative allocation of spectrum Number of players have reduced and there's no shortage of spectrum As a result the need for price discovery of spectrum through auctions is not there anymore Will lead to faster allocation & better utilisation of spectrum for backhaul, satellite communications and private networks In 2012when the Supreme Court had cancelled all 122 new licences granted by the then telecom minister A Raja, it had said that natural resources should be allocated through a process of auction. Continued on Page 2 Sales regain pace FE BUREAU Brisk business seen in busy season While sales have clearly regained momentum, rising input costs have pressured India Inc’s operating profit margins. Management commentary has been re-assuring with most companies confident business will be brisk in the busy season. Q2FY22 33.7 %, y-o-y 29.3 14.4 %, q-o-q 28.9 15.6 8.5 383.5 323.2 -61.6 -99.8 Net sales Operating profit Net profit RM to sales (bps) Sample of 655 companies (excluding banks & financials ) OPM (bps) Source: Capitaline