MARKETS, P9 COMPANIES, P4 REQUEST TO REGULATOR PSBs seek relief on provisioning for MTM losses in Q1FY23 NATION, P25 CONCERNS APLENTY LOT ON ITS PLATE TOWERING LEGACY India's rush to avoid blackouts leaving iron firms without coal With Blinkit acquisition, Zomato has task cut out in e-grocery space ‘Phantom of Bombay House’ Pallonji Mistry passes away at 93 NEW DELHI, WEDNESDAY, JUNE 29, 2022 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL XLVIII NO. 102, 34 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: 53,177.45 ▲ 16.17 NIFTY: 15,850.20 ▲ 18.15 NIKKEI 225: 27,049.47 ▲ 178.20 HANG SENG: 22,418.97 ▲ 189.45 `/$: 78.77 ▼ 0.42 `/€: 83.43 ▼ 0.62 BRENT: $117.06 ▲ $1.97 GOLD: `50,919 ▼ `25 Akash’s the limit for Jio Pankaj Mohan Pawar to be MD; Mukesh to remain Jio Platforms head SUCCESSION PLAN SET IN MOTION Operating revenue `81,587 cr Net profit RAJESH KURUP Mumbai, June 28 RELIANCE INDUSTRIES, THE country’s largest private sector company, on Tuesday initiated a much-anticipated generational shift in its telecom arm’s top management, withMukeshAmbanistepping down from the board of Reliance Jio Infocomm. His elder son, Akash (30), non-executivedirector,hasbeen appointed the chairman of the country’s largest telecom service provider. Jio is a whollyowned subsidiary of RIL and is creditedwithbringingaboutthe biggest change in the telecom `15,487 cr Subscriber base 410.2 million Reliance Industries chairman MukeshAmbani with wife Nita, sonsAkash &Anant and daughter Isha marketbychargingonlyfordata withvoicebeingfree.Thechange comes at a time when the telecom market is set for a generational change with the onset of 5G technologyand services. Mukesh Ambani, however, will continue to be the chairman of Jio Platforms, the flag- IN THE NEWS Rupee tanks 48 p, White goods: PLI ends at new low sops for 15 firms THE RUPEE plunged by 48 paise to close at a record low of 78.85 (provisional) against the dollar on Tuesday, weighed down by persistent foreign capital outflows and a surge in crude oil prices. P9 EXPLAINER, P25 THE DIGITAL GAME THE CENTRE has selected 15 firms, including Adani Copper Tubes, LG Electronics, Mitsubishi Electric, Jindal Poly Films Crompton Greaves, and Wipro, in Round 2 of the `6,238-crore white goods PLI scheme, reports fe Bureau. P4 shipcompanythatownsalldigital services brands, including RJio, and in which big-tech firms like Facebook, Qualcomm,Google,Intel and a host of PE firms have made investments totalling `1.52 trillion. Continued on Page 21 Walgreens junks sale of Boots WALGREENS BOOTS Alliance abandoned the sale of its Boots drugstore chain expected to bring over $6 billion after failing to secure the desired valuation for the UK business amid a turbulent credit market, reports Bloomberg. P4 Avg data consumption per user per month 19.7 GB Avg voice consumption per user per month 968 minutes All numbers for FY22 Amazon feud: SIAC rejects Future plea IN A SETBACK to Future Group, the Singapore International Arbitration Centre (SIAC) on Tuesday turned down a plea to end the legal proceedings initiated by US e-commerce major Amazon, reports Rajesh Kurup in Mumbai. P5 Council approves GST rate hikes FE BUREAU New Delhi, June 28 Hotel rooms below `1,000 to attract 12% tax; unbranded labelled food items to be taxed at 5% PRASANTA SAHU Chandigarh, June 28 THE GOODS AND Services Tax (GST) Council on Tuesday decided to remove a hostoftaxexemptionsandhikeratesfor an even larger number of mass-consumption items. It approved a proposal toimposea12%taxonhotelroomscosting below `1,000 per day and a 5% levy without input tax credit on hospital rooms with rent above `5,000.A clutch of‘unbranded’prepackagedandlabelled food itemswill attract 5% tax. The Council approved the reports of three ministerial panels (GoMs) on rate rationalisation, system reforms and eway bills on intra-state gold movement “infull”afterabriefdiscussion,according to three state finance ministers FE spoke to.The report of the Fitment Committee of the Council for developing a margin scheme for tour operators was also accepted bythe Centre-state Council. The Council,whichwill also meet on Wednesday,is likelyto approve another GoM recommendation for raising the GSTononlineskillgamingfrom18%to 28% to bring it on a par with “chance games”involvinggamblingandbetting, the sources said.The tax incidence will also increase on online gaming as the GSTwill be levied on on the full contest entry amount instead of the platform fee—thecurrentscenario.Onlinegam- Committed to small cars, says Maruti chairman GSTCouncil's decisions Reports of three ministerial panels on rate rationalisation, system reforms and e-way bills on intrastate gold movement accepted HOSTOF HIKES Earlier Hotel rooms with daily rent below `1,000 New Nil 12% Hospital rooms with daily Nil rent of `5,000 or more Unbranded 'prepackaged and labelled' food items 5% without ITC Nil 5% ing is a `30,000-crore industry and growing rapidlyin India. Continued on Page 2 ■ GSTseries:Administrative systems get strong after initial lapses, Page 2 ■ Land, real estate must be brought into the GSTnet without abolishing stamp duty:VS Krishnan, Page 6 New Delhi MARUTI SUZUKI INDIA, the country’s largest passengercarmanufacturer,has no plans to exit the small car segment as it continues to be a viable business, chairman RC Bhargava told FE. He said the companyremains committed to the customers of these vehicles. Bhargava pointed out that Union road transport minister Nitin Gadkari has already said that providing a minimum of six airbags for enhanced safety of occupants will only be RC Bhargava, chairman, mandatoryforvehicles Maruti Suzuki that can carry up to eight passengers. “This means that the Union minister Nitin entry-level cars and Gadkari said the 'six hatchbacks are out of airbags' rule will be the purview of this mandatory for proposed regulation. 8-seaters...so, entry- Wheneverthesameis level cars & hatchnotified, it would not backs are out of its affect Maruti in any purview. Whenever way,”Bhargava said. this is notified, it Entry-level and would not affect premium hatchbacks as well as compact Maruti in any way. sports utility vehicles (SUVs) are five-seatervehicles.From January this year,dual airbags have been made mandatoryin all passenger vehicles.The six-airbags norm for eight-seatervehicles has still not been notified. Bhargava said that though the small car segment has seen a decline in the last threeyears,it still has a market share of around 40%. ❝ ❝ ❝ ❝ MUKESH AMBANI STEPS DOWN, SON TO BE CHAIRMAN Continued on Page 21
The Financial Express (FE) is a business paper that’s closest to the people who are in the business of business. From business policies to market trends to new developments, The Financial Express comes packed with incisive news on every relevant issue.