OPINION, P10 FE LINES WELL BEING THE SPICE TRAP: HOW TO KNOW IF IT’S THE REAL DEAL Inheritance tax on buffaloes Beware of vishing How not to fall prey to voice call frauds Page 7 Adulteration of spices is a serious health concern. You should be able to tell whether they are pure or not Page 6 ACROSS THE AISLE, P CHIDAMBARAM VOL XXIII NO. 30 LEISURE Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM POWER OF PERIOD FINANCIAL EXPRESS ON SUNDAY NEW DELHI SUNDAY, MAY 19, 2024, 28 Pages, `12 (Patna `12, Raipur `12) 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 A T A , L U C K N O W , M U M B A I , NEW LOCALES ● Govt promoting offbeat places far from the madding crowds VAISHALI DAR New Delhi, May 18 IN A BID to attract foreign tourists Easier FDI, quick reforms on cards ■ WORDS WORTH, P4 MUKESH JAGOTA New Delhi, May 18 In excerpts taken from New Cold Wars, David E Sanger writes how geopolitical battles are being played out MORE RELAXATIONS IN foreign The three-cornered contest Power, realty, auto sectors shine 2024 YTD return 16.3 BSE Smallcap BSE Midcap BSE 500 Index Nifty Sensex 3.4 11.5 8.3 Top sectoral gainers 2024 YTD return (%) Utilities Oil & gas Auto Realty Power 26.5 25.7 25.0 24.3 Top sectoral losers 2024 YTD return (%) Information tech 5.1 INDIA, UK REVIEW IMPLEMENTATION OF 10-YR ROADMAP A COMPREHENSIVE review of the India-UK 'Roadmap 2030' was undertaken during foreign secretary Vinay Kwatra's two-day visit to London, the MEA said on Saturday. ■ PAGE 2 FMCG 3.0 0.2 ■ Lower import duties, ■ Less conservative FTAs, lower duties for industry ■ Rational tax regime to improve competitiveness of manufacturing sector cated a move towards lower import duties and efforts to deal with inverted duty structure and other distortions in taxation.“There are manycommoditiesbothontheGST side and customs side where inversioninthetaxregimeshouldbecorrected. We can’t have an inverted duty structure that has an impact on our competitiveness and affects our export capabilities,”he said. “The DPIITis conducting a crosssectional study—through both the GST Council and finance ministry—to ensure we rationalise and remove those inversions to improve thecompetitivenessofourmanufacturing sector,” Singh said. SOFTBANK-BACKED OYO is set to refile its much-awaited IPO, as the global travel tech player is close to finalising its refinancing plans to raise up to $450 million via sale of dollarbonds,sourcessaid.JPMorgan is the likely lead banker for the refinancing through the sale of dollar bonds at an estimated interest rate of 9-10% per annum,a source said. CHANGE IN PLANS ■ OYO has moved a plea with Sebi to withdraw DRHP ■ JP Morgan likely lead banker for refinancing OYO has already moved its application with markets regulator Securities and Exchange Board of India (SEBI) to withdraw its current MGNREGS in for a revamp ● Plan to plug leaks, make state govts stakeholders PRASANTA SAHU New Delhi, May 18 efforts to deal with inverted duty structure, other distortions in taxation likely to be taken up by govt ■ PLI scheme catalysing investments, exports, jobs He said India would become less conservative when it comes to free trade agreements (FTAs) and industry should prepare itself for lower duties in the long run.Singh underlinedtheproductionlinkedincentive (PLI) scheme as a centrepiece of India’s industrial policy that has catalysed`1.13trillioninvestments, `9 trillion sales,exports of `3.5 trillion and over8 lakh direct jobs. The government last month liberalised FDI norms in the space sector—which in the past has been considered sensitive and strategic— allowingupto100%foreignownershipofcompaniesinvolvedindifferent activitiesaround it. OYO to refile IPO, close to $450-mn refinancing deal PRESS TRUST OF INDIA New Delhi, May 18 TECK DELHI CM Arvind Kejriwal's aide Bibhav Kumar was arrested in connection with the alleged assault on AAP MP Swati Maliwal, even as the party claimed she was "blackmailed" by the BJP. ■ PAGE 19 direct investment (FDI) and some ‘quick reforms’to boost India’s business-ready image are likely to be on the new government’s agenda, a senior official said Saturday. “It is quitepossibleunderthenewgovernment that we attempt further liberalisationofFDIofanypocketswhere there is potential,” secretary in the department forpromotion of industryand internal trade (DPIIT) Rajesh Kumar Singh said at the CII annual business summit in Delhi. He said India’s FDI regime is one of the most liberal in the world and more open than southeast Asian nations with whom India is often compared. Besides FDI, the government is also looking at some‘quick reforms’ in the run-up to the World Bank’s Business Ready Report survey to boost India’s overall performance. India’ssurveyfortheBusinessReady ReportwillbegininSeptember.Itwill involve a new set of indicators that will cover ease of entry,ease of operating and ease of exit.The rankings have a signalling impact on foreign investorsand“wehavetoensurethat we do not regress and continue to improve”,Singh said. The DPIIT secretary also indi- BECOMING BUSINESS-READY Continued on Page 2 draft red herring prospectus (DRHP). The company intends to refile an updated version of the DRHP,after the bond issuance. Oravel Stays, OYO’s parent company,hadinNovemberprepaidasignificantchunkofitsdebtamounting to `1,620 crore through a buyback process.Thebuybackinvolvedrepurchasing30%ofitsoutstandingterm loan B of $660 million. Continued on Page 2 THE MAHATMA GANDHI National Rural Employment Guarantee Scheme (MGNREGS) is in for an overhaul under the new government to make state governments active stakeholders in it, said sources. Plugging leakages and ensuring that deserving states get their due share are also on the agenda,sources said. Currently, richer states are getting a disproportionate share in the scheme, whereas the financially stressed and backward onesare lagging in enjoying the full benefits. Despite being a centrally-sponsored scheme, where state governmentsusuallyshare40%ofthecost, the central government bears the full cost in the case of MGNREGS. The Centre’s expenditure in the scheme stood at `89,008 crore in FY24compared to `88,290 crore in the previous fiscal.The expenditure reached a record `1,09,810 crore during the Covid-hit FY21. While the details regarding the restructuring of the scheme will be finalised once a new government takes charge in June, officials said themajorissueisthequalityofasset creation,where no responsibilityof ownershipvestswith the state governments. “If not 40%, the state governments should share around 20% of the cost. This would make them a stakeholder in the scheme andtheywilltakeresponsibilityand ownership of the assets created," officials said. Another issue that the Centre wantstoexamineisthatseveralstate governments misuse the scheme to supplement their budgets for rural works rather than catering to seasonal unemployment. States with higher per capita income are the biggest beneficiaries of the scheme. The five southern states—Tamil Nadu,Andhra Pradesh, Karnataka, Kerala and Telangana—accounted for over 35% of the expenditure in Centre’s budget expenditure on MGNREGS (` crore) 89,008 Chaat—a traditional snack sold by street vendors— is going through innovation & experimentation in flavour, presentation and artistry to take centrestage in modern culinary interpretations MALIWALASSAULT: KEJRIWAL’S AIDE BIBHAV KUMAR HELD East Asia and So starting this Bir Billing, Himachal summer, instead of African countries. Kurseong,WB For this, we will focus Shimla, Manali, Thenzawl, Mizoram on lesser-known places known for Nainital or Mussourie, efforts are their crafts, culture and cuisine. It tourist flow in popular locations,” on to develop places like Bir will also help decongest the over- Manisha Saxena, director general, Billing, Kinnaur, Dalhousie and crowded hill stations and manage ministry of tourism,told FE. Tirthan in Himachal Pradesh,Pat- AGENDA FOR NEW GOVT CHALKED OUT Finger-licking good 29.8 Auli, Uttarakhand Wayanad, Kerala 88,290 ■ SPOTLIGHT, P5 2.3 P U N E nitop in Jammu & Kashmir,Auli in Uttarakhand, Wayanad in Kerala, Thenzawl in Mizoram and Kurseong in West Bengal. Under the ‘Cool Summers of India’ campaign, the ministry has, in consultation with respective state governments and Union territories, picked over 50 destinations and efforts are on to actively promote them as tourist attractions. Talking about the accessibility and infrastructure in these places, Saxena said big hospitality brands will also certainly open new properties as tourist flow will increase in these destinations. 96,812 to India even during summer months, the tourism ministry has come up with a campaign to develop destinations that have good weather during this time. “The idea is to dispel the notion that India is too hot in summers, and attract tourists from warmer countries like Middle East, South (%) D E L H I , India offers cool destinations that are cool too WHAT'S INSIDE In the year-to-date performance for 2024, benchmark indices Sensex and Nifty have seen modest gains, with Sensex up by 2.3% and Nifty by 3.4%. However, certain sectors have outperformed significantly, with power, realty, auto, and oil and gas all boasting returns of over 25%. The broader BSE 500 index has posted a return of 8.3%, while the BSE Midcap and BSE Smallcap indices have gained 16.3% and 11.5%, respectively. Conversely, IT, FMCG, and TECK have been underperformers, with losses of up to 5.1% among all 20 sectors. Compiled by Kishor Kadam N E W 1,09,810 F R O M : A H M E D A B A D , READ TO LEAD 71,020 P U B L I S H E D A Cannes installation explores the practice of isolating menstruating women Page 9 FY20 FY21 FY22 FY23 FY24 the scheme in FY24. It has been found that some southern states are using the MGNREGS funds to build infrastructure projects, while saving their own resources. For example, some of these states use the funds for partbuilding rural roads. Similarly, if schools are being built by them,the toiletsinthemarebuiltusingMGNREGS funds.“States using Centre's money for building their own projects defeats the purpose of the scheme,which is to cater to unemployment during the lean period,” officials said. Such malpractice puts pressure onthestatesthatneedfundstoprovide employment to people during the off-season, as the corpus gets used up faster. As per an internal government estimate, one-third of MGNREGS funds suffer from various kind of leakages. The labour cost in many states, including Tamil Nadu, is around `1,000 per day and yet it is hard to find labourers. Continued on Page 2 A brilliant thinker, institution-builder and mentor SHOBHANA SUBRAMANIAN New Delhi, May 18 THE WORLD WILL remember Narayanan Vaghul as a brilliant thinker,avisionaryandaninstitution-builder, a man who laid the ground for the evolution of universalbankinginIndia.Buthewill also be remembered as a people’s person—someone who nurtured thecareersofmanyprofessionals, taking them under his wing and mentoring them before letting themflyawaytomaketheirmark. The many bankers from the ICICI (Industrial Credit and Investment Corporation of India) fold, who went on to hold top positions both within ICICI Bank, and in other institutions, are testimony to his ability to spot talent and nurture it. Indeed, Vaghul was generous in his praise of his colleagues and always pushed them to do their best. One cannot think of any organisation that has thrown up so manybright professionals,the brightest being KV Kamath. At ICICI, which was housed in the unpretentious Mafatlal Chambers at Backbay Reclamation in Mumbai,itwas not merely about loans and interest rates; it was about creating a culture in which everyone could learn and grow. Indeed, the chairman himself worked out of a small room and almost never sat at his desk. NARAYANAN VAGHUL 1936-2024 One of his lasting contribu- ceedings.That’swhatno managetions as a leader was democratis- ment book or academic lecture ing the process of management can ever teach anyone. and bringing in transparency. While the day-to-day work Though final loan decisions could mattered,itwasneverahumdrum be taken only by the credit com- existence for the team; it was a mittee members, he vibrant organisation threw open the meetwith ample room for INSIDE ings to anyone in the ideation and innovaTRIBUTES organisation who tion. Many of them wanted to attend. He were well ahead of POUR IN was particularly keen their time.This kind of ■ PAGE 2 on new entrants environment, fostered attending the meetby Vaghul, would have ings so that they could learn how beenaninspirationformany.One decisions were taken. On Mon- never saw the same energy at any days, when the meetings took oftheotherbanksordevelopment place, the room used to be over- institutions of the time. crowded, with many people As a young reporter, I used to standing and watching the pro- meetVaghul,thenICICIchairman, New Delhi regularlyinhis5thfloorofficeand never returned without learning something. For the most part, Vaghul, always unassuming, would be seated on a sofa, and even if I didn’t always get a‘story’, I would get to know about something new that was happening. He believed in the greatergood ofthecountryanditsprogressasa nation; his thinking was not limited by the growth of ICICI or its balance sheet or even the banking sector. He was deeply affected by thepassing awayofAdityaVikram Birla whom he admired greatly andwhohefeltcouldhavegoneon to do great things forthe country. Continued on Page 2