ECONOMY, P3 COMPANIES, P9 CRISIS CONTINUES Many solar developers put projects on hold as panel prices jump 50% INTEL, TSMC TO SET UP UNITS IN INDIA WAREHOUSE, FUEL COSTS SOAR Power demand touches new peak, coal stocks plunge to precarious levels IMPORT DUTY SETBACK INTERNATIONAL, P8 Work on track to come out with a made-in-India chipset by 2024: Vaishnaw Amazon reports first quarterly loss in seven years NEW DELHI, SATURDAY, APRIL 30, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 51, 26 PAGES, `10.00 (PATNA & RAIPUR `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: 57,060.87 ▼ 460.19 NIFTY: 17,102.55 ▼ 142.50 NIKKEI 225: 26,847.90 ▲ 461.27 HANG SENG: 21,089.39 ▲ 813.22 `/$: 76.43 ▼ 0.06 `/€: 80.86 ▲ 0.38 BRENT: $110.22 ▲ $2.63 GOLD: `51,847 ▲ `571 IN THE NEWS Star9 Mobility to buy Pawan Hans for `211 crore STAR9 MOBILITY, A consortium of Big Charter, Maharaja Aviation and Almas Global Opportunity Fund SPC, has won the bid to acquire a 51% stake in staterun helicopter firm Pawan Hans for `211.14 crore, 5.6% higher than the reserve price set for the deal, reports fe Bureau in New Delhi. Core infra sector growth slows to 4.3% in March GROWTH IN THE output of eight core infrastructure sectors eased to 4.3% in March from a year earlier, reports fe Bureau in New Delhi. This reflects the fragility of industrial recovery as the favourable base effect continued to wane. Panel for inclusion of Covovax jab for 12-17 age group THE STANDING TECHNICAL Sub-Committee of the NTAGI has recommended inclusion of Serum Institute's Covid jab Covovax in the national anticoronavirus vaccination programme for children aged 12 to 17 years, sources said on Friday, reports PTI. Power crisis: 42 trains cancelled to make way for coal THE RAILWAYS HAS cancelled 42 passenger trains so far to facilitate coal freight movement in the wake of a power crisis in various parts of the country, causing inconvenience to people travelling to and from coal-producing states such as Odisha, Madhya Pradesh and Jharkhand, reports PTI. Special Feature How the XL6,a big vehicle,is so fuel efficient Its fuel efficiency of 20.97 km/litre is 34% higher than Kia India’s Carens (15.7 km/litre) ■ Motobahn, P8 BUILDING ENERGY TRANSITION BIZ IN INDIA GREEN MOBILITY Shell pays $1.55 bn for Sprng Energy Deal to triple energy giant’s global operational renewable capacity Deal to be completed later this year after regulatory approvals ■ Sprng’s current portfolio comprises 2.9 GW of solar and wind assets VIKAS SRIVASTAVA Mumbai, April 29 SHELL ON FRIDAY agreed to buy India’s renewable energy supplierSprngEnergyfor$1.55 billion, a move that is in sync with the multinational energy giant’s plan to build an integrated energy transition businessinthecountry.Thedealwill triple Shell’s global operational renewable capacity. While the deal will be completed laterthisyearafterregulatory approvals are obtained, Sprng Energy will retain its existing brand and operate as a wholly-owned subsidiary of Shell within the latter’s renewable and energy solutions integrated power business, Shell said in a statement. Mauritius-incorporated Solenergi Power is the direct shareholder of Sprng Energy, which was set up by private equity firm Actis. Its current portfolio comprises 2.9 giga watt (GW) of solar and wind assets,ofwhich 2.1 GWis oper- Tata Sons chairman N Chandrasekaran (right) and Tata Motors’ Passenger Vehicles and Tata Passenger Electric Mobility MD Shailesh Chandra at the unveiling of 'Tata Avinya' concept car during a global launch event, in Mumbai Friday. The auto major plans to introduce multiple advanced EVs starting from 2025 on the Avinya concept Sprng to retain its existing brand, operate as Shell’s wholly-owned arm ■ Of this, 2.1 GW is operational and balance underconstruction Details on Page 4 CORPORATE Q4 SCORECARD ■ Additionally, Maruti profit up UltraTech Cement 7.5 GW 58% on price hikes profit rises 47.6% of renewable it has a assets in the pipeline ational and the balance underconstruction.Additionally,ithas 7.5 GW of renewable assets in the pipeline. Wael Sawan, director, Integrated Gas, Renewables and Energy Solutions, Shell, said:“I believe it (the agreement) will enable Shell to become a leader acrossthepowervaluechainina rapidly growing market where electrificationonamassivescale and strong demand for renew- ables are driving the energy transition.” He added: “Sprng Energy generates cash, has an excellent team, strong and proven development track record and a healthy growth pipeline.Sprng’sstrengthscancombine with Shell India’s thriving customer-facinggasanddownstreambusinessestocreateeven moreopportunitiesforgrowth.” Continued on Page 2 MARUTISUZUKIIndiaon Fridayposteda 57.7%year-on-yearriseinitsconsolidated net profit at `1,838.90 crore during the January-Marchquarter,reportsfeBureau in New Delhi. Price hikes, which offset higher input costs, coupled with lower promotional expenses, helped the automakerpostarobustprofit.Bloomberg consensus estimate had pegged the company’s net profit at `1,428.13 crore. At `26,740 crore,the automaker’s total revenueduringtheperiodwasup11.3%and also above the Bloomberg estimate of `26,607.91 crore. Lower advertising and market expenses and better efficiencies enabled the country’s largest automaker to control costs to some extent. ■ Page 4 ULTRATECH CEMENT, Aditya Birla Group’scementflagship,onFridayposted a47.60%riseinconsolidatednetprofitat `2,620 crore for the fourth quarter, following an improvement in demand and tax credit,reports fe Bureau in Mumbai. The company had posted a net profit of `1,775 crore a year ago.A consensus estimateofBloomberganalystswasexpecting the firm to post a net profit of `1,505 crore. After a slow start to the quarter, demandimprovedmonth-on-month,driven by an improvement in the government’s execution of various projects.The company’s board also recommended a dividend of 380% at `38 per share, totalling to `1,096.95 crore. ■ Page 4 6.5-8.5% FEASIBLE MEDIUM-TERM GROWTH Price stability needed for sustainable growth: RBI FE BUREAU Mumbai, April 29 STEP BY STEP PRICE STABILITY IS a necessarypreconditionforachieving strong and sustainable growth in the post-pandemic era, the ReserveBankofIndia(RBI)said in its report on currency and finance for 2021-22. Characterising high levels of governmentdebtasyetanotherriskto growth,the central bank called upon the government to reduceitsdebttobelow66%of gross domestic product (GDP) over the next five years. The theme of the report is “Revive and Reconstruct” in the context of nurturing a durable recovery post-Covid andraisingtrendgrowthinthe medium term. In a chapter titled‘APolicyAgenda forPostCovid-19 India’, the RBI said that a feasible range for the medium-term steady state GDP growth in India works out to 6.5-8.5%. First, the large surplus liquidity overhangwill have to bewithdrawn Second, cutting debt to more sustainable levels compatible with growth trajectory ■ Structural reforms like enhancing access to litigation-free low-cost land, raising quality of labour Use of further measures to reverse sustained decline in private investment ■ Govt to borrow `14.95 trillion in FY23, ofwhich `8.45 trillion to be raised in H1 Continued on Page 2 India to make up for Covid losses only in FY35 THEECONOMYWILLtake nearly15yearsto makeup for the losses it has incurred during the pandemic, accordingtotheRBIreport on currency and finance forFY22.“Takingtheactual growth rate of -6.6% for 2020-21, 8.9% for 202122 and assuming growth rate of 7.2% for 2022-23, and 7.5% beyond that, India is expected to overcome Covid-19 losses in 2034-35,” the report said. ■ RBI bats for clear demarcation of responsibilities to regulate Big Tech ● ALSO SEE, PAGE 7 EMPOWERING KIRANA STORES ONDC debuts, but questions linger RISHI RAJ & BANIKINKAR PATTANAYAK New Delhi, April 29 THE GOVERNMENT'S AMBITIOUS neutral, open source, not-for-profit, e-commerce platform, Open Network for Digital Commerce (ONDC), which aims to empower momand-pop shops and kirana stores,rolledoutonapilotbasis onFriday.However,expertssaid several challenges lie ahead, whichifnotaddressedproperly, mayderail the project. Industry sources lauded the government’s initiative, which in many ways challenges the dominance of bigger e-commerce players like Amazon and Flipkart. ThepositivesideofONDCis that it provides a level-playing fieldtothesellersaswellasbuy- 100 No. of cities where ONDC will be rolled out in 6 months Contribution to ONDC equity (` cr) NPCI 25 PNB 25 Kotak Mahindra Bank 20 30 million No. of sellers to be onboarded in six months ers.All kind of sellers — big and small — can list and sell their products on this platform.The same applies to buyers who would have a wider array of BoB 15 NSDL eGov 15 NSE 15 BSE 10 SBI 10 HDFC Bank 10 Total* 255 ICICI Bank 10 *including 10 others choices.With the unified payment system, the issue of payment gateways is also solved. However, many say all this may look good only on paper. On the practical front, several loose ends need to be tied up before the platform really takes off. Forinstance,there'snoclarity yet on where the liability rests. Industry executives said that on platforms like Amazon orFlipkart,theliabilitylieswith the platform and not the sellers. If a consumer orders, the timingofdelivery,cancellation andreturnofproductsaregoverned byrules of the platform. However, with regard to ONDC,nosuchmechanismhas been worked out yet.“Suppose a consumer buys a product from a small kirana store on ONDCandthestoredeliversthe product late, what happens? Who takes the responsibility?” asked an industryexecutive. Continued on Page 2 New Delhi Wipro logs 4% net rise on lower taxes WIPROREPORTEDEARNINGSthatwere broadlyin linewith the Street’s estimates for the quarter ended March, reports fe Bureau in Mumbai. Operating margins, however, were below expectations. The company reported a 4% increase in the company’s net profit to `3,090 crore versusBloombergconsensusestimatesof `3,011 crore, aided by lower taxes. The company’s revenue rose 3% sequentially to `20,860 crore.Wipro had a sequential constant currencygrowth of 3.1% in Q4. Operating margins came in at 17% adjustedfortheacquisitionofCapco.This was a decline of 60 bps q-o-q, leading to an operating income of `3,546 crore, which was flat sequentially. ■ Page 4
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