MARKETS, P6 ECONOMY, P2 IRAC NORMS NBFC bad loans may rise by a third after RBI clarification INTERNATIONAL, P8 TO BE NOTED NEW ROLE OFFSETTING TAXES Market competition, lower credit offtake push banks to pursue credit growth at lower yields Gita Gopinath to be No. 2 at IMF as first deputy managing director Elon Musk's Tesla share sales pass the $10-billion mark CHENNAI/KOCHI, SATURDAY, DECEMBER 4, 2021 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLIII NO. 178, 14 PAGES, `10.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 57,696.46 ▼ 764.83 NIFTY: 17,196.70 ▼ 204.95 NIKKEI 225: 28,029.57 ▲ 276.20 HANG SENG: 23,766.69 ▼ 22.24 `/$: 75.17 ▼ 0.18 `/€: 84.92 ▲ 0.03 BRENT: $71.63 ▲ $1.96 GOLD: `47,361 ▼ `33 SUPPLEMENTARY DEMAND House nod sought for `3.74L-cr extra spend A minor breach of FY22 fiscal deficit target looks likely IN THE NEWS Food processing sector FDI down 54% in last fiscal FOREIGN DIRECT INVESTMENT (FDI) in the food processing sector declined 54% to `2,934.12 crore in 2020-21 as compared to the previous year, the government said on Friday, MoS for food processing industries Prahlad Singh Patel said in the Rajya Sabha, reports PTI. Data protection panel may table its report on Dec 21 THE JOINT COMMITTEE of Parliament examining the Personal Data Protection Bill is likely to table its report on the floor of the House on December 21, sources said on Friday, reports PTI. The Bill seeks to provide for the protection of personal data of individuals. FE BUREAU New Delhi, December 3 FINANCE MINISTER NIRMALA Sitharaman on Friday sought Parliamentary clearance for an additional spending of `3,73,761 crore, placing the secondbatchofsupplementary demands forgrants forthe current fiscal.This involves a higher-than-expectednetcashoutgo of `2,99,243 crore; the rest would be met through savings or enhanced receipts of various ministries and departments. Given that the disinvestment target of `1.75 lakh crore is set to be missed bya fairmargin (BPCL privatisation may KEY PROPOSALS Net cash outgo ofthe supplementary demand To clear past dues ofAir India, etc. 62,057 58,430 53,123 49,805 Additional food subsidy 22,039 (` cr) lysts reckon.This is despite the fact that net tax revenues and handsome dividend transferby the central bank will together exceed the Budget Estimate by `1.7 lakh crore,according to an Icra assessment. Continued on Page 2 Need collective global action for effective tech regulation: FM FINANCE MINISTER NIRMALA Sitharaman onFridaycalledfora“collectiveglobalaction” foreffectiveregulationofever-changingtechnology and tech-driven payment systems, reports PTI.So far,regulators are only“catching-up” in regulating ever-evolving technology and hence there is no one point formula withwhich it can be regulated,she said. PMI Her comments also come against the backdrop of the government preparing to come out with legislation to regulate cryptocurrencies. "Even aswe are thinking about at a national level, there should simultaneously be a global mechanism through which weareconstantlymonitoringthemovement of technology,”Sitharaman said. ■ Page 3 FE BUREAU Services sector maintains momentum in Nov Services activity remained strong in November, with a substantial upturn in new orders underpinning output growth, although it slowed a tad from its peak in ten-and-a-half years in October. Services PMI stood at 58.1 in November, against 58.4 in October. However, while input costs rose at the secondstrongest pace in close to ten years, companies’ ability to raise prices softened from the October level. 2,99,243 To clear dues owed to exporters stretch into FY23) and about `65,000 crore in potential revenue would be lost due to the recent cut in fuel taxes,the elevated additional spending pledgecouldmakeitdifficultfor the Centre to contain fiscal deficit at the budgeted level of 6.8%ofGDPinFY22,someana- 60 56.3 58.1 Manufacturing 55 50 57.6 53.7 45 40 48.1 Services 41.2 35 Nov 2020 June 2021 Note: Reading below 50 suggests contraction and above it indicates expansion Nov 2021 Source: IHS Markit DoT returns BGs worth `9,000 crore to telcos KIRAN RATHEE New Delhi, December 3 Extra fertiliser subsidy For rural job scheme NREGS ● REFORM ROAD THE DEPARTMENT OF telecommunications (DoT) has startedreturningbankguarantees (BGs) to telecom operators and so far, BGs to the tune of over `9,000 crore have been returned to Bharti Airtel, Reliance Jio andVodafone Idea. To start with, DoT has initiated return of BGs related to licence fees and spectrum charges, while spectrum auction-linked BGswill be returned shortly. The regional centres of DoT are returning the BGs to telecom operators. “The Cabinet had approved lowering the requirement of BGs by80%,so wearereturningtheexcessBGs to the telecom operators. The processisongoingandregional officesofDoTareengagedinit,” sources in DoTtold FE. Sources said, so far, Bharti Airtelhasreceived`4,000crore worth of BGs back and Reliance Jio got around `2,700 crore. Vodafone Idea has got over `2,500 crore of BGs back from DoT.As per industry estimates, BGs amounting to about `35,000-40,000 crore have beenlyingwithDoTagainstvarious statutoryrequirements. Continued on Page 2 OMICRON SCARE Markets falter as investors dial back their risk exposure Caution takes hold ahead of RBI policy meet Sensex 58,800 58,461.29 58,100 PRESS TRUST OF INDIA Mumbai, December 3 DOMESTICMARKETSLURCHED lower on Friday after India reported its first case of the Omicron variant of the coronavirus, prompting investors to dial backrisk exposure. TheCentreonThursdaysaid twocasesofOmicronhavebeen detected in Karnataka.Both the patients are men, aged 66 and 46 years,with mild symptoms. Severesymptomshavenotbeen noted,an official said. The government has asked people not to panic and follow Covid-appropriate behaviour. Italsosaidwhilethereisnoevidence to suggest that existing vaccines do not work against Nifty50 17,600 56,700 56,000 57,064.87 Nov 26 Nov 29 Nov 30 Omicron, some of the mutations reported may decrease the efficacy of the jabs. Snapping its two-session rally, the 30-share BSE Sensex nosedived 764.83 points or 1.31% to end at 57,696.46. Similarly, the broader NSE Nifty tanked 204.95 points or 36,700 17,401.65 57,684.79 57,107.15 Bank Nifty Dec 2 57,696.46 57,260.58 57,400 17,400 36,100 74.90 17,196.70 Nov 26 Dec 3 Inverted scale Dec 2 74.87 74.99 75.02 35,800 75.14 35,500 17,000 16,800 36,197.15 Dec 3 Continued on Page 2 74.78 36,025.50 Dec 2 1.18% to 17,196.70. PowerGridwasthetoploser in the Sensex pack, shedding 4.03%, followed by Reliance Industries, Kotak Bank, Asian Paints, Bharti Airtel, Tech Mahindra and Maruti. `/$ Dec 2 36,508.25 36,400 17,200 17,026.45 Dec 1 75.26 Nov 26 Dec 3 75.17 Nov 26 ● LOWER RATE Companies, banks rush to bond market FUNDRAISING BY COMPANIES and banks from the bond markethasincreasedsharplyin the last two weeks as they are lookingatlockinginlowerrates ahead of the RBI’s policy meet next week, reports Manish M Suvarna in Mumbai.The market expects RBI will announce liquidity tightening measures, which will increase borrowing costinthecomingdays.Market participantsalsoexpectthatthe RBI could increase the reverse repo rate and make repo rate an operational rate.PAGE 6 NEW VARIANT Special Feature We ride two bikes,two cars to some lakes in Western Ghats India has some incredible lake clusters—great lakes of Kashmir, lakes in the Ghats, in Northeast, tals of Himachal & Uttarakhand. So, next time you travel, forget Como, visit Loktak ■ Motobahn, P7 QuickPicks Vodafone files plea with govt for settlement of retro tax dispute BRITISH TELECOM giant Vodafone on Friday said it has filed an application with Indian authorities for settlement of their retrospective tax dispute, reports PTI. Vodafone further said it has "always been confident" that no tax is due on the company. India in August enacted a law to end all retrospective taxation imposed on indirect transfer of domestic assets. The rules seek to withdraw demands made using a 2012 retrospective legislation to tax the indirect transfer of Indian assets and also refund the amount paid in these cases without any interest. PAGE 4 PMC Bank case: SC refuses to entertain Wadhawan’s bail plea THE SUPREME Court on Friday refused to entertain the bail plea filed on health grounds by jailed businessman Rakesh Wadhawan, accused of money laundering in the multi-crore rupees PMC Bank fraud case, saying that he has been in hospital more than the jail, reports PTI. A bench comprising Chief Justice NV Ramana and Justices Surya Kant and Hima Kohli permitted senior advocate Mukul Rohatgi, appearing for Wadhawan, to withdraw the bail plea to approach the high court. Rohatgi referred to the medical condition of the accused and said that he has been in jail for quite some time. Booster dose for all above 40: Insacog FE BUREAU Pune, December 3 THE INDIAN SARS-COV-2 Genomics Consortium, Insacog,hassuggested booster shots of the Covid-19 vaccine forthoseabove40yearstodeal with the threat of the Omicron variant. Insacog is a consortium of 28 laboratories that monitors genomic variations in coronavirus. Insacog’s weekly bulletin suggested vaccination of all remaining at-risk people and considering a booster dose for those 40 years of age and over. Booster doses should first target the most high-risk/highexposure segment as the low levels of neutralising antibodies from current vaccines was unlikelytobesufficienttoneutralise Omicron,Insacog said. The US and Britain have already cleared booster shots for some age groups. Union health minister Mansukh Mandaviya said in Parliament ■ Some ofthe mutations reported may decrease efficacy ofjabs, says Centre ■ Evidence for Omicron's increased remission, immune evasion awaited ■ Insacog says genomic surveillance critical for early detection ■ Insacog recommends monitoring travel to and from known affected areas, contact tracing ■ Measures used against delta shouldwork for omicron:WHO on Friday that decision on booster doses and vaccine for children is not political and wouldbetakenbyexpertgroup based on science. Continued on Page 2 ‘No evidence existing vaccines won’t work’ WHILE THERE IS no evidence to suggest that existing vaccines do not work on the Omicron variant of SARS-CoV-2, some of the mutations reported may decrease the efficacy of the jabs, the Union health min- istry said, reports PTI. It, however, underscored that definitive evidence for new variant’s increased remission and immune evasion is awaited. The ministry has issuedalistofFAQsaboutthe Omicron variant. ■ Page 2 CHENNAI/KOCHI Dec 3