BACK PAGE, P20 COMPANIES, P4 INTERNATIONAL, P9 OUTPUT, CAPACITY WOES FAREWELL NOTE FIRST CHIPMAKER TO REACH MARK 2030 energy mission running out of gas; consumption dips TCS's best years are ahead, says outgoing CEO Rajesh Gopinath Nvidia hits $1 trillion in market value on booming AI demand MUMBAI, WEDNESDAY, MAY 31, 2023 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. LXIII NO. 127, 38 PAGES, `10.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 62,969.13 ▲ 122.75 NIFTY: 18,633.85 ▲ 35.20 NIKKEI 225: 31,328.16 ▲ 94.62 HANG SENG: 18,595.78 ▲ 44.67 `/$: 82.72 ▼ 0.09 `/€: 88.66 ▼ 0.10 BRENT: $74.68 ▼ $2.39 GOLD: `60,167 ▲ `283 IN THE NEWS Airline will be dead if lessors take back jets: Go First to HC THE INTERIM RESOLUTION professional of Go First on Tuesday told the Delhi high court deregistration of its aircraft would render the airline, which has which has 7,000 employees on its rolls, dead, reports fe Bureau. ■ PAGE 4 AMCs may pass on TER to intermediaries ASSET MANAGEMENT COMPANIES may pass on a high share of the total expense ratio, or TER, impact to intermediaries like distributors, brokers and registrar & transfer agents, reports Ashley Coutinho. ■ PAGE 8 Global firms can pick lower IT PLI threshold UNDER A NEW hybrid model, global as well as domestic IT hardware makers can invest either `250 crore over six years or `500 crore over the same period under the revised IT PLI scheme, reports Jatin Grover. ■ PAGE 20 Resilient FY23 for HUL, says chairman THE COUNTRY'S LARGEST FMCG firm, Hindustan Unilever, delivered a resilient performance amid a volatile environment in FY23, chairman Nitin Paranjpe said, reports Viveat Susan Pinto. ■ PAGE 4 Vedanta pledges 4.4% in Indian arm LONDONHEADQUARTERED VEDANTA Resources has pledged 4.4% of its overall holding in its subsidiary and Indian mining major Vedanta to its rival Glencore International AG in lieu of a $250-million loan, reports Rajesh Kurup. ■ PAGE 5 CBDT notifies e-appeals scheme IN WHAT IS expected to help speed up resolution of small disputes, taxpayers will now have recourse to the income tax e-Appeals scheme that would enable electronic filing and hearing of such cases, reports Surabhi. ■ PAGE 2 EXPLAINER Sebi’s plan to cut IPO listing to 3 days ■ PAGE 20 BlackRock slashes Byju’s fair Govt asks Tesla to value by 62% to $8.4 billion FIRM MAY RESPOND IN 3-6 MONTHS submit road map for vendor base PRASANTA SAHU New Delhi, May 30 THE GOVERNMENT HAS asked Elon Musk’s Tesla to submit a road map on the timeframe needed to set up an indigenous supply chain for domestic manufacturing of its electric vehicles. Official sources said the government will finalise the kind of concessions it is willing to offerandtheirduration,onceTeslasubmitsthe blueprint.Officialsawareofthedevelopment saidTesla is expected to get backwith its detailedIndiaplan,outliningthetime it needs to set up a domestic vendor base,in three to six months. Government officials have already told the Tesla team, which visited the country during the middle of the month,that if the companylooks at setting up a domestic assembly unit for its EVs, it is willing to offer import concessions on the components required for the same. Such a scheme currentlyworks forthe smartphone production-linked incentive (PLI) scheme under the phased manufacturing programme (PMP). However, over a period of time, Tesla will have to locallymanufacture the components, for which it will have to ask its vendors to set shop here. Since most of Tesla’s vendors are Chinese,theyneedtoformjointventureswith Indian firms to operate in the country. “Thegovernmentiswillingtogivetimefor setting up a domestic vendor base but Tesla WHATINDIA WANTS ■ Govt willing to give time to set up domestic vendor base have to indicate a period by which duty concessions on components will come to an end ■ Govt has done the same for Apple under the smartphone PLI scheme ■ Once Tesla agrees to set up plant in country, govt may modify PLI scheme for EVs, advance chemistry cell battery will have to indicate a period by which the duty concessions on components granted to it will come to an end,”officials said. The government has done the same for Apple under the smartphone PLI scheme. UnderthePMP,AppleaswellasSamsunghave duty protection on components required for domestic assembly of phones. But they have tosource themlocallywithintheset timeline. Continued on Page 2 March,whileJPMorgan’sJamieDimonand Starbucks’Laxman Narasimhan are also in Chinathisweek.MuskmetChineseforeign minister Qin Gang hours after landing in Beijing.Qin told Musk China was committedtoimprovingthebusinessenvironment for investors, including Tesla, and used an elaborate driving metaphor to describe China-US relations, according to a statement from his ministry. ■ Page 9 MID-CAPS ON A HIGH THE BSE MIDCAP index closed at an all-time high of26,954.63 on Tuesday; its previous high was 26,952.13 on October 18, 2021. Mid-caps have been on a dream run,with the index delivering returns of6.5%YTD, compared to 3.5% by the Sensex. On a oneyear and three-year basis, the Sensex 75,000 BSE Midcap US-BASED ASSET MANAGEMENT company(AMC)BlackRockhascutthefairvalue ofitsequityholdinginedtechfirmByju’sby about62%to$8.4billion.Thisisthesecond instance of BlackRock marking down its shareholding in Byju’s after the first time inOctoberlastyear.TheAMChadoriginallyinvestedinByju’sata$12-billionvaluation in 2020. According to filings with the Securities andExchangeCommission(SEC),theAMC’s 2,279 shares in Byju’s have been valued at $8.4 billionat the end of FY23. ItwasinNovember2021,thatByju’svaluation soared to $22 billion as it last closed a large Series Ffunding round of more than $700 million from investors such as Chan Zuckerberg Initiative, GenGlobal Bright AJAY RAMANATHAN Mumbai, May 30 62,969.13 THE RESERVE BANK ofIndia(RBI)isworking on a lightweight payment and settlement system (LPSS) that can be operated fromanywherewithminimalmanpowerin theeventofnaturalcalamitiesandwar.The systemwillbeindependentofexistingpaymentsystemssuchasRTGS,NEFT,andUPI. In its annual report for 2022-23, theRBIsaidexistingconventionalpayment systems are designed to handle large volumeswhileensuringsustainedavailability. As a result,they rely on complicated wired networks supported by cutting-edge ITinfrastructure. However,eventslikenaturalcalamities and war have the potential to render these systems temporarily unavailable by disrupting the underlying infrastructure. Therefore, it is prudent to be prepared to face such extreme andvolatile situations. “A resilient system can enhance public confidence in digital payments and finan- 45,000 30,000 15,000 Varun Beverages 127.4 CG Power & Inds 118.8 IDFC First Bank 0 Union Bank India 85.9 Tube Investments 79 1-year return (%) -68.9 ‘We are not in business to chase awards’ CEO of Leo Burnett South Asia talks about the changing definition of creativity ■ BRANDWAGON, P7 Student loan: Small prepayments can lower interest burden Refinancing can help you pay off your loans more efficiently ■ PERSONAL FINANCE, P7 Aarti Inds -27.7 May 30, 2023 Delhivery -27.7 18,633.85 Laurus Labs -29.9 16,813.60 Gland Pharma -41.1 26,954.63 May 2, 2018 valuation in 2020when BlackRock first invested in Byju's in Nov 2021 after Byju's last closed $700-mn Series F funding round fair value at the end of Sept 2022 after markdown by Netherlandsbased investor Prosus raised from Davidson Kempner on May 13 in fresh round as part of $700-mn raise at flat valuation of $22 billion INSIDE Valuation cuts continue to plague unicorn startups PAGE 4 Corp,Edelweiss,VeritionFund,XNExponent Holdings,MarketXVentures and others. Other investors,too,have pared the fair value of the edtech firm. Last September, Netherlands-basedventurecapitalfirmPro- ■ Light-weight and portable payment system to process key govt and market-related transactions ■ Aim is to keep liquidity pipeline intactvia uninterrupted functioning of essential payment services suspeggedthefairvalueofits9.67%investmentinByju’sat$578millionoravaluation of just around $6 billion. As the funding winter persists and startupscontinuetoreportlosses,investorsboth globallyand domesticallyare paringvaluations of their investments in startups. Experts say if the funding slowdown,there could be more markdowns in future. Continued on Page 2 INSIDE RBI calls for structural reforms for medium-term growth PAGE 2 `500 notes most popular, heavily counterfeited PAGE 8 ■ Digital transactions' share in non-cash retail payment volumes up to 99.6% in FY23 from 99.3% in FY22 cialmarketinfrastructureevenduringextreme conditions,”the report said. Theportablesystemisseenasa“bunker equivalent” in payment systems and will process transactions that are critical to SIDDHANT MISHRA Mumbai, May 30 96.4 35,176.42 10,718.05 $250 million ensuringthestabilityoftheeconomy,such as government and market-related transactions. LPSSisexpectedtooperateonbasic hardware and software and will be made active onlyon a need basis,RBI said. Furthermore, the system can ensure near-zero downtime of the payment and settlement system and keep the liquidity pipeline of the economyintact byfacilitatinguninterruptedfunctioningofessential paymentserviceslikebulkpayments,interbank payments, and provision of cash to participant institutions. Continued on Page 2 Sebi: Will step in if MF self-regulation is weak 1-year return (%) 60,000 FE S P E C I A L S $6 billion WEIGHTY MATTERS TOP LOSERS Nifty $22 billion RBI moots light payment system TOP GAINERS index has gained 17% and 128% respectively,vis-à-vis 13% and 92% by the benchmark. Top gainers over the past year have beenVarun Beverages and CG Power, and Gland Pharma and Laurus Labs the biggest laggards. Compiled by Siddhant Mishra & Kishor Kadam $12billion SALMAN SH Bengaluru, May 30 ■ Teslawill Eyeing expansion, Musk back in China TESLACEO ELON Musk onTuesdaykicked offahigh-stakesvisittoChinawithameeting with the country’s foreign minister in Beijing, marking his return to the electric carmaker’s largest production hub after three years. The trip is the latest return bya top US CEO toChinasincethecountryreopeneditsborders and reversed its zero-Covid policy in December. Apple’s Tim Cook visited in IN FLUX Second markdown of US AMC’s shareholding in the edtech startup Biocon THE MUTUAL FUND (MF) industry should step up its self-regulation and check individual misdemeanours, or else the regulator will have to intervene, Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch said onTuesday. Speaking at an event organised by industry body Association of Mutual Funds in India (AMFI), she said the industry should set up an ethics committee to check instances of malpractice,even though it is not a self-regulatoryorganisation (SRO), andhasnoenforcementpower. If the industry fails in this regard, Sebi will have “no choice but to come down as a hammer”. Exuding confidence that the industry’s “journeyfrom `40 trillion to `100 trillion” will soon happen,she asserted that institutionalmechanismisvitalinputtingacheck onindividualwrongdoing,shesaid,adding that AMFI 2.0 is all about keeping a check on such malpractices. Thefoundationoftheindustryisstrong, she said,“but often there are bad apples” and the onus is on the industry to make a transition from “letter of the law to upholdingthespiritofthelaw”. She referred to the MF industry as the bada beta (elder son)—whomtheregulator has high faith in and expectations from. Madhabi Puri Buch, Sebi chairperson Continued on Page 2 TV REACH COULD BE CLOSER TO 550 MN, ESTIMATE EXPERTS JioCinema hits the ball out of the park in nail-biting final 32 mn VIVEAT SUSAN PINTO Mumbai, May 30 RAIN DELAYS AND a truncated match failed to deter cricket fans from tuning in to the final clash of the Indian Premier League (IPL) on Monday.ThematchbetweenGujarat TitansandChennaiSuperKingssaw JioCinemareachconcurrentviewership of a record 32 million. This was the highest-ever digital viewership for the season and the fifth time this record was broken during the tournament this year, JioCinema, part of the Viacom18 network,said. Concurrency records were previously shattered on April 12 (22 million), April 17 (24 million), May 24 (25 million) and May 26 (25 HIGH SCORER concurrent viewership of final IPL match on JioCinema ■ Previous figure on platformwas 22 mn (April 12), 24 mn (April 17), 25 mn (May 24) and 25 mn (May 26) million),JioCinema said. JioCinema is the digital broadcaster of the IPL for the 2023-27 period and streamed the IPL for freethisyear.Themoveledtoheight- 482 mn TVreach for first 66 matches, says Disney Star quoting BARC data 550 mn totalTVreach likely after playoffs, final, say experts ened curiosity, downloads and advertiser interest, sector experts said, with the first weekend itself seeing 1.47 billion video views on the platform and new app down- 300400 mn TVreach before IPL2023 loads pegged at 50 million Television also added new viewers, as per data from the BroadcastAudienceResearchCouncil of India (BARC). While BARC data for the final matchwillcomewithalag,numbers until lastweek show thatTVviewership also shattered records.As many as482millionTVviewershadtuned in to watch the first 66 matches of the T20 tournament, the highesteverreachforanyeditionofthetournament, Disney Star, the TV broadcaster of IPL for the 2023-27 period said,quoting BARC data. Total TV consumption for the tournamentforthefirst66matches on the Disney Star network stood at 360billionminutes,thebroadcaster said.Thiswas against over13 billion videoviewsforJioCinemainthefirst five weeks of the tournament,with viewersspendinganaveragetimeof 60 minutes permatch on the digital platform during the period. “JioCinema continues to grow fromstrengthtostrength.Itisbased onclearevidenceofconsumer’soutright preference of catching the IPL on digital,” Viacom18 Sports CEO Anil Jayaraj said. Media experts said the IPL this year has added newviewers on both digital and television. Sajal Gupta, chief executive officer at Gurugram-based Kiaos Marketing,said,“While the fear earlier was that the split in IPL viewership would be detrimental to the media ecosystem, the two broadcasters have actually managed to grow the viewer base thanks to aggressive marketing and programming initiatives.” Continued on Page 2
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