COMPANIES | PAGE 4 BACK PAGE | PAGE 16 Putin calls PM, fully backs India’s fight against terror INTERNATIONAL | PAGE 7 Gingerwillbethegrowth engineforIHCL:Chhatwal White House: No call on 100% tariffon foreign-made films CHENNAI/KOCHI, TUESDAY, MAY 6, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XLV 309, 16 PAGES, `12 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: 80,796.84 ▲294.85 NIFTY: 24,461.15 ▲ 114.45 NIKKEI 225: 36,830.69* ▲ 378.39 HANG SENG: 22,504.68* ▲ 385.27 `/$: 84.24 ▼ 0.31 `/€: 95.56 ▼ 0.40 BRENT: $60.50 ▼ $0.79 GOLD: `94,883 ▲ `1306 IN THE NEWS Indo-Pak tensions: Govt orders mock drills tomorrow WITH THE LINE of Control (LoC) hotting up and tensions soaring over a likely Indian military response to the Pahalgam terror attack, the Centre on Monday directed northern and western states and Union Territories to test and strengthen civil defence mechanisms in the event of a hostile attack, report Mahender Singh Manral & Amrita Nayak Dutta. The ministry of home affairs has asked the states and UTs, including J&K, Punjab, Rajasthan and Haryana, to conduct mock drills on May 7. Sources said states and UTs have been asked to operationalise air raid warning sirens, implement crash blackout measures in selected areas and train civilians on safety protocols to follow during an aerial or ground assault. ■ PAGE 16 FTA stalled over UK carbon tax; India for ‘rebalancing’ steps WESTERN LABOUR AND environmental standards continue to pose challenges for Indian trade negotiators, with the UK’s carbon tax emerging as a key sticking point in talks aimed to finalise a trade deal during the latest round of negotiations in London, reports Ravi Dutta Mishra. ■ PAGE 2 TCS cuts variable pay of senior staff for third straight quarter TCS HAS CUT the variable pay of its senior employees for the January–March quarter, according to a report by Moneycontrol. This marks the third quarter in a row that the country’s largest software exporter has reduced variable pay for some employees. ■ PAGE 5 Parameswaran Iyer to represent India on IMF board AHEAD OF A crucial meeting of the IMF on fresh loans to Pakistan, the government has given India’s executive director at the World Bank Parameswaran Iyer temporary charge at IMF also, following the premature exit of K V Subramanian, reports fe Bureau. ■ PAGE 2 FE S P E C I A L S India offers zero-for-zero tariffs on select US items LENDERS HAVE BEEN PARTOFBHUSHAN POWERTALKS Govt, lenders finalise stand on JSWorder ● DFS secretary says LEGAL TANGLE govt will finalise its approach soon SECRETARY, DEPARTMENT OF FINANCIAL SERVICES salvage the deal by offering to infuse the entire `8,550 crore as equity URVI MALVANIA Mumbai, May 5 5.81% on Friday, the JSW Steel stock lost further ground on Monday, falling 1.76% to close at at `955 apex court ordered the liquidation of Bhushan Power and Steel (BPSL), rejecting the firm’s THE DEPARTMENT OF Financial Services (DFS) has reviewed the Supreme Court order on the liquidation of Bhushan Power and Steel (BPSL), in consultation with the lenders,M Nagaraju,secretary,DFS said in Mumbai on Monday. “I have already reviewed (the order) with all the lenders.We have taken a position, we have studied the judgement, we have got our advocates' view on the judgment,” Nagaraju said. He added that the governmentistakingaviewonhow to approach the judgment.“We will finalise soon,”Nagaraju added. Sajjan Jindal-led JSW Steel, the country’s biggest steel producer, has also said itwill reviewthe order. Legal experts believe JSWSteel’s options are limited but say it could file a review petition challenging the order within 30 days from the date of judgement. Of course, this timeline could be extended if the court is on vacation. Eminent legal expert, HP Ranina, observed that I have already reviewed (the order). We have taken a position, we have studied the judgment, we have got our advocates’ view on the judgment ■ After falling ■ Last Friday, the `19,350 cr resolution plan SHRUTI SRIVASTAVA & MIHIR MISHRA May 5 M NAGARAJU, ■ Legal experts say JSW Steel can JSW Steel can try and salvage the deal by offering to infuse the entire `8,550croreasequityrather,aswas originally approved,than largely in the form of compulsorily convertible debentures. The bankrupt BPSL had been acquired by JSW Steel, nearly four years ago, via the corporate insolvency route for `19,350 crore.The National Company Law Apellate Tribunal (NCLAT) had approved the resolution plan in February 2020. A two-judge bench of the apex court on Friday rejected the resolution plan on the grounds that it was in “flagrant violation and contravention” of the provisions of the Insolvency and Bankruptcy Code (IBC) and the Corporate Insolvency and Resolution process(CIRP) regulations. For instance, the SC observed that the equitycommitment,made by JSW Steel, as part of the resolution plan for an amount aggregating `8,550 crore, to be infused upfront on the effective date,“was also notcompliedwithbyJSW”.This was one of the main criteria on which JSW had scored the best in the evaluation matrix. Continued on Page 5 Startup job postings surged 32% y-o-y inApril, driven by a sharp rise in ITservices roles and growing deep tech focus, according to a report by jobs platform foundit.Athreefold jump inTier-2 city job shares, from 9% to 31%, signalled a shift away from metros like Bengaluru, Delhi-NCR, and Mumbai,where hiring has declined. IT services lead hiring; sectoral shifts indicate focus on deep tech 20 Share of startup jobs (in %) 23 April '23 11 10 11 IT services 7 BFSI/Fintech April '24 9 6 Healthcare Tier-2 cities emerge as hotspots (in %) Metros 9 8 Internet 6 8 7 6 BPM / BPO Apr '24 Apr '23 8 7 5 Education/ Edtech 6 3 Media & Entertainment Apr '25 (in %) 9 31 Apr '24 Tier-2 April '25 12 91 33 31 21 21 23 Apr '25 69 Bengaluru 14 Delhi/NCR TRADE TALKS THE GOVERNMENTHAS proposed zero tariffs on steel, auto components and pharmaceuticals on a reciprocal basis up to a certain quantity of imports in its trade negotiations with the US, people familiar with the matter said. Beyond this threshold, imported industrial goods would attract the regular level of duties, the people said, asking not to be identified as the discussions are private. The offer was made by Indian trade officials visiting Washington late last month to expedite negotiations on a bilateral trade deal expected byfall thisyear, the people said. The two nations are prioritizing certain sectors to strike an early trade deal before the end of the 90day pause on US President Donald Trump’s tit-for-tat tariffs,the people said. Amid a contraction in the US economy, Trump suggested Sundaythat some trade deals could be sealed as soon as thisweek,offer- Indian trade officials visiting Washington late last month ■ The offer was made by 17 18 11 Mumbai M&M net profit rises 22% in Q4 Swiggy shuts down Genie Auto retail sales up 3% inApril M&M POSTED a 22% y-o-y surge in the March quarter net profit at the standalone level to `2,437 crore, helped by a richer product mix in the SUV category, reports Swaraj Baggonkar. ■ PAGE 4 FOOD DELIVERY major Swiggy has shut down its hyperlocal delivery service Genie across several cities due to unsatisfactory revenues from the vertical, reports Raghav Aggarwal. ■ PAGE 5 AUTOMOBILE RETAIL sales rose by 3% y-o-y in April, reaching 2.28 million units, up from 2.22 million units in the same month last year, according to FADA, reports Nitin Kumar. ■ PAGE 4 ■ The two nations are prioritizing certain sectors to strike an early trade deal before the end of the 90-day pause ■ Beyond this threshold, imported industrial goods would attract the regular level of duties ■ Trump suggested Sunday that some trade deals could be sealed as soon as this week ing the prospect of relief fortrading partners seeking to avoid higherUS import duties. Asian economies, including South Korea, Japan and India are among the nations leading the race for reaching interim deals with his administration. An email to the ministryof commerce and industrywas not immediately answered. Washington has also asked India to resolve its concerns around Quality Control Orders (QCOs), which it considers a non-tariff trade barrier for its exports, the people said.The mandatoryquality standards, which lay down benchmarks that both local and foreign manufacturers must meet before selling their goods in India, have been criticised forbeing non-transparent and unfair.India iswilling to reconsiderits existing QCOs in sectors such as medical devices and chemicals,and has offered to sign a mutual recognition agreement with the US under which both nationswill accept each other’s regulatory standards and practices. –BLOOMBERG I-Tdeptseekstocloseout `10LcrdisputesinFY26 Everagets500 BluSmartcabs viaitslending partners PRASANTA SAHU New Delhi, May 5 IT drives startups hiring boom 32 *Prv close DISPUTE REDRESSAL THE INCOMETAX department has set an ambitious target to dispose of over200,000 cases,involving an aggregate disputed amount of `10 lakh crore, lying with the first forum of appeal, in the current financial year. This compares with over 172,000 cases resolved at the Commissioner of Income Tax (Appeals) stage in FY25,where the locked amount was about `6.3 lakh crore. Going by the trend in recent years, the revenue department manages to lay its hands on roughly a third of the disputed amount, immediately after such mutual resolutions. If the targeted number of cases are resolved by the CIT (Appeals) in FY26, it would result in not only a big jump in tax receipts, but could also improve the liquidity position of hundreds of businesses, enabling them not only to meet operational costs, but even scale up capital expenditure. This is because the CIT-Appeals in several cases decide to withdraw the demands, especially those in which the amounts are clearly not recoverable. The income tax arrears,including demands not fallen due as on April 1, 2025, are estimated to be `48.18 lakh crore in 22.9 million demand entries. Keeping in view the (piling up) of arrears and cash collections,it is imperative that concerted efforts are being made to reverse the trend and reduce the disputed amounts to “more manageable levels,” the CBDT said in its Central Action Plan 2025-26. So, it has set “net collectable Direct tax litigation management FY23 FY25 FY24 Appeals pending* FE BUREAU Bengaluru, May 5 demand”forFY26 at a little over`5 lakh crore, while the reduction in demand to the tune of `8.25 lakh crore, sources said. It is to be noted that in FY25, the disposal of appeals was 55% more than the previous year and was at an all-time high. In FY25, the number of appeals disposed of at the CIT level was 172,361, with demands fully confirmed (in favour of the revenue department) at `1.95 lakh crore, and another `2.25 lakh crore partly confirmed. DEHI-BASED ALL-ELECTRIC CAB service firm Evera Cabs, which is operated by Prakriti Mobility, has begun reclaiming 500 electric cabs previously run by BluSmart, a rival mobility service that recently suspended operations. The repossession, carried out through Evera's lending partners, comes as part of a broader strategy to strengthen its presence in the electric mobility sector, especially in the competitive airport transportation segment across the National Capital Region (NCR). In a statement issued on Monday, the company said that it has already recovered 220 vehicles, with the remaining 280 to follow soon. The move positions Evera to scale up its fleet and meet growing demand, particularly in airport mobility services. Previously limited to operations at Delhi airport’s Terminal 3, Evera is now aiming at all-terminal coverage with the expanded fleet. Co-founder and CEO Nimish Trivedi described the initiative as more than just a fleet expansion. He called it a realignment of the electric mobility space, emphasising Evera’s goal to absorb proven electric vehicle assets and integrate experienced drivers to ensure service continuity. Trivedi stressed that Evera is stepping forward with a clear intent, at a time when major players are recalibrating their strategies. Continued on Page 5 Continued on Page 5 4,96,470 5,16,484 5,49,042 New appeals 1,45,273 1,44,064 1,62,297 App isp Appeals disposed 1,25,259 1,11,506 1,72,361 Closing no of appeals 5,16,484 5,49,042 5,38,978 *A of April 1 *As f Shares worth `60,000 crore to be available for sale from quick commerce major Swiggy SBI eyes over 1% return on assets FY 26 to see pressure points in few areas ■ INVESTOR P9 When small loans spell big trouble The microfinance sector is in the throes of a crisis, with defaults surging ■ EXPLAINER, P9 Lock-inperiodofsharesworth`2.2LcrsettoendbyJuly ANANYAGROVER Mumbai, May 5 SHARES WORTH `2.2 lakh crore ($26 billion) will be unlocked between April 30 and July 28 as the pre-listing lock-in period of promoters, anchor investors and other shareholders is set to expire. Of this,sharesworthapproximately `1.26 lakh crore ($15 billion) wouldbeavailableforsaleinthe marketinMayitself,according toastudybyNuvamaInstitutional Equities. Tobesure,whiletheexpiry of the lock-in period will potentiallyincrease the supplyofsharesthatcanbesold, it is not necessary that all these shareholders will sell their stake.Many of them,including SUPPLY SIDE STORY Companies Lock in expiry date Lock in How it fared since value (` cr) listing close (%) CMP* (`) Swiggy May 13, ‘25 60,013 -30 343 Sagility India May 12, ‘25 12,678 44 41.21 Niva Bupa Health May 13, ‘25 8,480 11 86.58 Afcons Infrastructure May 2, ‘25 7,477 -10 417 Aadhar Housing Fin May 16, ‘25 7,089 44 475.00 Tata Technologies May 28, ‘25 5,327 -49 666.00 Source: Nuvama; *As on May 5, 2025 the promoters and other long-term investors,are expected to retain their holdings.Theexpiryofthesix-month lock-in period for Swiggy on May 13 will theoretically mean a supply of 1,897.5 million shares held by non- promotersworth`60,013crore. This is among the largest shareholdings that could hit the market in the next 30 days, according to the report. This is followed by Sagility India,NivaBupaHealthInsurance,and AfconsInfrastructure. On Friday, the lock-in of anchor investors shares of Dr Agarwal's Healthcare ended and the culmination of six-month periods of Deepak Builders & Engineers,Blue Jet Health, and Afcons Infrastructure cumulativelyunlocked247millionshares.On Monday, 64.8 million shares of Honasa Consumer were unlocked. However, there was little action in these stocks,with three losing marginalvalueandtwogaining. According to Sudeep Bandyopadhyay, group chairman of Inditrade Capital,therewillinvariablybeselling pressure on the day of lock-in ending as some investors are waiting to sell their shares.“Overall,it is dependent onthemarketmovement,”hesaid. Bandyopadhyay expectsthemarkettoberange-boundtillJuneamidst the volatility and advises investors to CHENNAI/KOCHI becareful.Inthepastonemonth,both thebenchmarks,theNiftyandSensex, havegainedmorethan10%. SiddarthBhamre,HeadofinstitutionalresearchatAsitCMehta,added that most of the stocks – whose lockinperiodsareduetoexpire–aretrading lower than their issue price. He believes the price movements would depends on the opportunities that these investors anticipate as they are strategic investors.“We may not see immediate downward pressure,but upsidewillbelimited,” hesaidadding thatitwillvaryfordifferentstocks. TheIndianmarketshavebeenona roll with foreign portfolio investors (FPI) going on a buying spree. They snappedupstocksworth`4,223crore inApril,as they turned net buyers for thefirsttimeinthreemonthsagainst thebackdropoffavourableglobalcues andstrongmacro-fundamentals.