READ TO LEAD
OPINION, P6-7
URJIT R PATEL
No fiscal space for India to
have US/UK-like Covid-19
relief measures
BENGALURU, MONDAY, APRIL 6, 2020
VOLUME XXXII NO. 298, 10 PAGES, `6.00 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
IN THE NEWS
Air Deccan stops
ops, 'sabbatical
sans pay' for staff
AIR DECCAN announced on
Sunday that it is ceasing its
operations until further
notice and all employees
are being put on sabbatical
without pay, the first Indian
aviation company to
succumb to the coronavirus
crisis that has led to a
21-day lockdown and
virtually paralysed the
sector, reports PTI. In an
email to his employees,
CEO Arun Kumar Singh said,
“In view of the recent global
and domestic issues and
subsequent directive by the
Indian regulator (to suspend
all commercial passenger
flights till April 14), Air
Deccan has no choice but to
cease its operations until
further notice."
EPFO to accept
Aadhaar as birth
proof online
THE EPFO will accept online
its subscribers' Aadhaar
cards as valid proof to
rectify their date of birth to
ensure that the account is
KYC-compliant, the labour
ministry said on Sunday,
reports PTI. The date of birth
recorded in Aadhaar will
now be accepted as valid
proof of date of birth for the
purpose of rectification,
provided that the difference
in the two dates is less than
three years, a statement
issued by the ministry said.
FE SPECIALS
■ BRANDWAGON, P10
Now streaming, more than ever
OTT platforms see a surge in consumption and
subscriber count, as viewers seek fresh content
■ eFE, P8
Covid-19: Startups to the rescue
Nasscom CoE incubated startups DronaMaps and Blinkin lead
the fight using drone technology & remote accessibility
■ PERSONAL FINANCE, P9
Ways to cut re-investment risks
Invest in small savings schemes as the interest rates are still
higher than that of bank FDs. Also go for tax-free bonds
■ INFRASTRUCTURE, P4
Road construction faces new hurdle
After a fiscal that saw the pace of work slowing down,
FY21 is likely to be impacted by Covid-19 and its aftermath
■ SCIENCE & TECH, P5
Of trackers & men
Coronavirus will change how we view privacy, govts
need to implement blockchain to establish trust
QuickPicks
After lockdown, 15 states lift
11% of total foodgrain package
IN THE last 10 days after the `1.7-lakh-crore
package was announced by the Centre, 15 states
have lifted about 11% of the total of 40.47 lakh
tonne of foodgrains earmarked as monthly
additional quota under the Prime Minister Garib Kalyan Anna
Yojana for free distribution via ration shops, reports FE Bureau
in Delhi. UP, Bihar and Telangana have lifted 3.96 lakh tonne.
HDFC Bank gets mandate
for PM-CARES donations
HDFC BANK on Sunday said it has received the
mandate to collect donations for the PM-CARES
Fund, reports FE Bureau in Mumbai. Individuals
can donate to the fund using debit cards,
credit cards, Unified Payments Interface (UPI) and digital
banking channels. Companies can also donate to the fund,
HDFC Bank said.
R LAXMINARAYAN & N MOR
To curb further spread
of Covid-19, India
must move to
pooled testing
COVID-19 OUTBREAK
Pattern emerges: 80% cases
reported from 62 districts
Cases cross 3,500;
aggressive
containment action
likely in hotspots
after April 14
ABANTIKA GHOSH
New Delhi, April 5
WHILE THERE HAS been a
sharp spike in the number of
novel coronavirus (COVID-
19) cases and deaths over the
past week, 62 districts
account for over 80 per cent
of the cases so far.
Top government sources
said restrictions are likely to
continue in these districts
even after the nationwide
21-day lockdown ends on
April 14.
Across the country, 274
districts have reported posi-
tive cases so far. The total
number of cases in the coun-
try currently stands at 3,577
(274 cured, 83 deaths); on
March 30, the tally was 1,251
cases, 32 deaths.
“There is a clear geograph-
ical skewin the spread; 62 dis-
tricts are currently reporting
over 80 per cent cases and
these will be the focus for
aggressive containment strat-
egy in the Bhilwara model.We
are also stepping up testing.In
ECONOMY, P3
A family makes a map of India with traditional lamps, in
Surat on Sunday
the last two days the tests
were doubled, in the next few
days we will again double,”
said a source.
The containment zones,or
areas reporting large number
of cases, in these 62 districts
will be sealed off in what is
unofficially being referred to
in the government as the
“Bhilwara model”.
Meanwhile, amid reports
and studies which raise the
possibility of the virus being
airborne, the Indian Council
of Medical Research (ICMR)
said there was no credible evi-
No BoT projects
FY20 highway construction pace slowest in 3 yrs
Disruption of activities in the run-up to general elections, liquidity crunch and lockdown
have slowed the pace of highway construction to the lowest level in 3 years in 2019-20
Project awards by NHAI (%)
BOT toll EPC
4 FY15 12.08
100
15
80
60 87
96
40 85
20
20 10
0
13
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Source: NHAI, Morth, Ind-Ra
FRUIT & VEGETABLE TRADE
Market arrivals plunge, yet
firm prices solace for growers
PRABHUDATTA MISHRA
New Delhi, April 5
THE LOCKDOWNAND conse-
quent labour shortage has hit
the mandi trade of fruits and
vegetables,leading to accumu-
lation of these perishables at
the farmers’ end. A solace for
growersoffruitsandvegetables
is that mandi prices of onion
and potato have been ruling at
remunerative levels for them
since the lockdown began.
However, if the lockdown
extends, farmers might
suffer huge losses, market
watchers said.
Dataacrossmandis(exclud-
ing in Maharashtra) show only
TECH SAVVY
Overnight shift to work-from-home, but India Inc doesn’t falter
ANWESHA GANGULY
Mumbai, April 5
LATE LASTMONTH, a client of
advisory firm Deloitte ran a
virtual workshop for eight
hours for15 people across four
countries.Suchaneffortwould
have been unthinkable even a
fewmonthsback.Butalthough
the shift to the work-from-
home environment may have
come abruptly,India Inc came
up the curve in no time at all.
Even hiring has gone digi-
tal. “We are using Microsoft
REACHING OUT
PM discusses corona
situation with Sonia,
Manmohan, Pranab
dence in this regard.
“If this was an airborne
infection,notdropletinfection,
every person in a family would
be infected; the same would
applyforotherpatientsinahos-
pital. But we have not seen any
evidence of that happening so
far.Therehavebeenonemillion
cases the world over, and no
such instance has been found.I
think we should trust that evi-
dence,”said DrRRGangakhed-
kar, head of epidemiology and
infectious diseases,ICMR.
Continued on Page 2
HAM/annuity
8 ■ In addition
56 46 40
76
72
35 51 60
24
3 FY19 29.7
Mandi arrivals
(lakh tonne)
12.11
12.34
6.55
4.67
Onion Potato
4.67 lakh tonne of onion crop
arrived during March, against
12.11 lakh tonne in the year-
ago period.
Similarly, arrivals of potato
andtomatoinMarchwere6.55
Teams to screen and shortlist
talent. Features like ‘lobby',
allowus to have digitalwaiting
areas where we can schedule
talent one after another with
individual interviewers,”
Paneesh Rao,chief people offi-
cer,Mindtree,told FE.
Companies are quickly
warming up to remote work
technologies – Flock, Zoom,
Slack,Teams – in double quick
time: HCL Technologies and
Mahindra & Mahindra have
ramped up the use of Teams,
State Bank of India has been
FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE
A longer
lockdown?
Here is what
researchers
have to say
SARTHAK RAY
New Delhi, April 5
AGAINST THE BACK-
DROP of the three-week
lockdown,and3,557peo-
ple testing positive for
Covid-19 in India (as on
Sunday),findings of three
India-focussed Covid-19
modelling studies have
been discussed in com-
mentaries in the media.
The earliest of these —
by researchers at the Uni-
versity of Michigan,
Johns Hopkins University
and Delhi School of Eco-
nomics,datedMarch22–
isabasicsusceptibility(S),
infection (I) and recovery
(R) model,which projects,
based on Johns Hopkins
University (till March 18)
and Indian census data, a
very narrow difference
between the case counts
Continued on Page 2
FE BUREAU
Highways construction by MoRTH,
NHAI, NHIDCL (Km/day)
27
FY16 16.6
73
FY17 22.5
FY18 26.9
FY20 25
Average
farm-gate Onion 245
prices
(in major Potato 120
centres
during March
Tomato -56
15-31, 2020
(% change
y-o-y)
2.11
1.7
March 2019
March 2020
Tomato
lakh tonne and 1.7 lakh tonne,
respectively,against12.34lakh
tonne and 2.11 lakh tonne, in
the same month last year.
Continued on Page 2
ILLUSTRATION: SHYAM KUMAR PRASAD
ECONOMY, P2
COVID-19 ‘MEDICINE’
Trump urges Modi
to allow export of
Hydroxychloroquine
COVID-19 AFTERMATH
A third of orders cancelled,
grave crisis grips export hubs
Overseas buyers
seek to rework
contracts, prices;
small units face
existential threat
R RAVICHANDRAN,
GEETA NAIR, BV
MAHALAKSHMI, NAYAN
DAVE & RAJESH RAVI
Chennai/Pune/Hyderabad
/Surat/Kochi, April 5
WITH VAST SWATHES of key
markets — the US and the EU
— badly bruised by the Covid-
19 outbreak and migrant
workers back home following
anationwidelockdown,export
hubs in India are pummelled
by an unprecedented crisis.
Exporters from hubs,
including Tirupur, Chennai,
Surat, Hyderabad, Pune and
Kochi, that FE spoke to were
bracing for harrowing times.
Mandi prices CALLS BARRED
of many rabi No recharge facility
crops fall for 200 m users
below MSPs KIRAN RATHEE Total mobile subscribers
Mandi prices of
major rabi crops
Against MSP (%)
0
Wheat
-11 (Ujjain, MP)
Masur
-19
-24 Mustard
(Sagar, MP)
(Tonk, Rajasthan)
Chana
(Guna, MP)
PRABHUDATTA MISHRA
New Delhi, April 5
EVEN AS FARMERS wait to
receive the PM-Kisan benefit
from the government afterthe
Covid-19outbreak,thesupport
willbeoffsetbylossesforthem.
Notwithstanding the con-
cerns over broken supply
chains,mandi prices of at least
three rabi crops — mustard,
chana and masur — are ruling
at 11-14% belowtheirrespec-
tive minimum support prices
(MSPs).Unlessthegovernment
implements a robust procure-
ment system after the lock-
downislifted,farm-gateprices
of many crops could remain
depressed, causing further
hardship to farmers, market
observers say.
According to an FE analysis
of mandi prices in Madhya
Pradesh and Rajasthan,where
rabi crops arrived even before
closure of mandis around
March 20, all crops were sold
below their respective MSPs.
For the 2019-20 crop year
(July-June), MSPs of rabi crops
were raised by 5-7% from the
previous year.
The Centre is yet to
announce this year’s procure-
ment policy for oilseeds and
pulses under PM-Aasha
scheme, the Budget allocation
ofwhich has been reduced bya
third to `500 crore for FY21.
Continued on Page 2
WWW.FINANCIALEXPRESS.COM
DIM OUTLOOK
Garments: Tirupur
units, with `26,000-cr
exports a year, fear a
50-60% slide in FY21
Leather: Summer orders
hit, outlook for winter sales
hazy; `8,000-cr orders
cancelled/postponed
Gems & jewellery:
About 30-35% of export
orders of Surat diamond
units cancelled; output
has stopped
About 25-30% of orders had
been cancelled across various
productcategories.Overseasbuy-
ersareusingthecrisistorenego-
tiatecontracttermsandseekacut
inproductprices.Domesticman-
ufacturing units are shut and
New Delhi, April 5
THE EXTENSION OF validity
by the telecom operators for
their pre-paid subscribers to
enableuninterruptedcommu-
nication during the lockdown
does not cover the entire
2G user base, thus causing
problem to a section of cus-
tomers.
Roughly, of the total 500
million 2G users, around 200
million have got left out of this
facility.
Several pre-paid 2G users
FE spoke to said that their
validity has expired and they
are not being able to recharge
as physical retail outlets
are shut.
Continued on Page 2
RELIEF TO INDIVIDUALS
Govt mulls easy bank
overdraft norms
BANIKINKAR PATTANAYAK
New Delhi, April 5
AFTER ANNOUNCING
MONEY transfer through Jan
Dhan accounts of 20.4 crore
poor women to blunt the
Covid-19 impact, the govern-
ment mayimpress upon state-
run banks to help improve the
cash flow of individuals,many
of whom are not yet covered
under any relief measure.
One of the proposals being
toyed with is to raise the over-
draft facility automatically for
customers with good credit
historyfora temporaryperiod,
should theywish to avail of it,a
source told FE.“The proposal
also includes raising the limit
for Jan Dhan account holders
(not justwomen) from the cur-
communicating on Zoom,
while Aditya Birla Capital uses
both.And it is not alwayswork.
Employees at the Aditya Birla
Group get together for online
yoga sessionswhile at Deloitte
employees take 'chai-breaks'
overvideo calls.
An AB Capital executive
said internal meetings apart,
customers are being
approached through video
conferencing. The HR team at
Godrej Group hosts sessions to
train employees to use work
collaboration and video call
READ TO LEAD
Pharma: Dr Reddy's says
demand still good but facilities
are operating at below-normal
levels due to lockdown
Auto: Bajaj Auto says no clarity
yet but exports may pluange
by 20% in FY21
Natural rubber: Over 4,500
dealers faced `400-cr loss in
first week of lockdown
Marine products: US badly
hit; Vietnam and China are still
buying but internal logistics a
huge problem
Agri: Exports of rice, grapes,
onions, soymeal and cashew to
drop; 75% drop in Darjeeling
tea output in first flus
logistic chains in tatters,though
portsaresomewhatfunctioning.
Most of the top 25 destina-
tions for engineering goods
exports are facing a lockdown.
Continued on Page 2
1.15 billion
Prepaid customers
1.09 billion
2G subscribers
509 million
■ Relief by way of
extension of validity:
Around 300 million
(includes all of
BSNL/MTNL's
prepaid users,
80 mn of Airtel, &
100 mn of Vodafone Idea)
70-80 million
JioPhone users get
the benefit who
are technically not
2G users but use
low-end phone
rent `10,000. A final decision
will be taken soon,”he said.
If approved, the move will
benefit not just the poor (Jan
Dhanaccountholders)butalso
the lower middle-class cus-
tomers, who are bereft of the
PDS facilities,among others.
Continued on Page 2
software – Microsoft Teams
and Workplace.
Sumit Mitra, head, group
HR, Godrej Industries, told FE
that tool kits had been shared
for reference. “We have
ensured that all data and plat-
forms have been adjusted for
remote working access,”Mitra
said. Manish Sinha, Partner,
Deloitte India, told FE these
technologies were designed
well and it was up to people to
adapt to them organically.
Continued on Page 2
 2 FINANCIAL EXPRESS
Economy
MONDAY, APRIL 6, 2020
● CORONAVIRUS
Rate of doubling of cases
spiked on Jamaat incident
Without Jamaat,
the rate would
have been 7.4 days
against 4.1 days now
PRESS TRUST OF INDIA
New Delhi, April 5
THE RATE OF doubling of
Covid-19 cases in India is at
present 4.1 days but if the
cases linked to the Tablighi
Jamaat congregation would
not have happened, it would
have been 7.4 days, the health
ministry said on Sunday.
“If theTablighi Jamaat inci-
Overnight shift to
work-from-home
but India Inc
doesn’t falter
Teamshasseenanunprece-
dentedspikeinusagewithover
44 million daily users globally
generating over 900 million
meetings and calling minutes
each day. The platform added
12 million daily users over
seven days to March 19.
Meanwhile, Slack saw con-
nected users increase from 10
million on March 10 to 12.5
million on March 25.
Flock, a workplace collabo-
ration tool designed in India,
sawnewteamsjoiningtheplat-
form just from India growing
bynearlythreetimesduringthe
last twoweeks in March.
Mindtree’sRaosaidhisfirm
had started interviewing pros-
pectivecandidates–crosscoun-
tryandoff-campus–overvideo
callssinceMarch14tohelpkeep
talent and interviewers safe.
Godrej’s Mitra said digital solu-
tions had helped bridge the gap
with distributors.“Ourbusiness
heads routinely connect using
video conferencing apps with
ourkeydistributors andvendor
partners,”Mitra said.
There are thosewho discov-
ered working remotely some
timeback.Zomato,forinstance,
hasbeenusingenterprisecom-
munications platform,
Dingtalk, for more than a year.
Carrentalservice,Zoomcar,has
already been using US-devel-
oped work communication
tool, Slack.“Our present set-up
works sufficiently, though we
have significantly increased
using softwares like Slack with
our teams working remotely,”
Greg Moran, co-founder and
CEO of Zoomcar,told FE.
Next in line is remote pro-
jectmanagementsoftwarelike
JIRA and Confluence, Sinha
said.“While the focus so farhas
been on tools to enable people
to connect and work remotely,
a lot still needs to be done in
terms of workflow manage-
ment,”Sinha said.
A third of orders
cancelled, crisis
grips export hubs
These 25 markets together
accounted for $53 billion
exports in the April-February
period, according to Ravi Seh-
gal,chairman of EEPC India.
Exporters from Tirupur,the
country’s larget garment hub
thatisexpectedtohave shipped
outaparrelworth`26,000crore
in FY20, apprehend a 50-60%
year-on-yearslideindespatches
in FY21. The cluster – with
1,000-oddunits,mostlyMSMEs
– employs around 6,00,000
people.About a half of them are
migrant labourers, who have
gone back home with no cer-
taintyofareturnanytimesoon.
The leather companies in
Chennai say summer sales are
goneand,giventhecrisisinthe
US and the EU, the outlook for
winter orders remains uncer-
tain. At the all-India level,
orders worth about `8,000
crore have either witnessed
cancellation or a deferment of
delivery,said exporters.
Rafeeque Ahmed, chair-
man of major leather exporter
Farida Group,said:“We antici-
pate that we will lose at least
onequarter’sbusiness.Thereis
hardlyanyenquiryfromtheUS
dent had not taken place and
we compare the rate of dou-
bling-thatisinhowmanydays
the cases have doubled,we will
seethatcurrentlyitisabout4.1
days (including Jamaat cases)
andEurope.” Nearly70%ofthe
leather exporters are SMEs.
Raja M Shanmugham, MD
at Warshaw International and
president of the Tirupur
Exporters’ Association, said”
“We have not even received our
payments for exports in Janu-
ary and February, and much of
thestocksdespatchedinMarch
are stuck mid-way. I have no
clue when the markets will
reviveandwewillgetourdues.”
The already-dwindling
farm exports are expected to
plunge further in FY21.
Even large companies are
not unscathed. Having wit-
nessed a dream run in the
December quarter and in Feb-
ruary (when its exports out-
stripped domestic sales), Bajaj
Auto’sstellarshowwasjoltedby
the pandemic.Rakesh Sharma,
EDatBajajAuto,projectedanup
to20%y-o-ydeclineinexports
in FY21 and maintained that
the picture still remained hazy.
Whiletheautomakerhasn’tyet
seen cancellation of orders, it
fears its payment abilitywill be
erodedifthesituationworsens.
Without enough labourers,
employment-intensivesectors
likegarments,leatherandeven
gemsandjewelleryareinforan
extended period of uncertain-
ties. Cash reserve is depleting
fast and in the absence of ade-
quate and smooth credit flow,
and many units, especially
small and mid-sized ones, are
on the brink of collapse.
The EU, the US and China
aloneaccountfor40%ofIndia’s
overall goods exports. Even
before the pandemic spread its
tentacles in India,the country’s
goodsexportshadcontractedby
1.5% y-o-y up to February this
fiscal to $293 billion.
In Surat, which houses
some 20,000 diamond units,
about 30-35% of export
orders have been cancelled,
according to Dinesh Navadia,
chairman of the Gujarat chap-
ter of the Gems and Jewellery
Export Promotion Council.
Production has come to a halt
after the lockdown. Almost
80% of the gems and jewellery
from India are exported to the
US,Hong Kong and China,and
nine out of every10 rough dia-
monds in the world are being
cut and polished in Surat.
In the pharmaceutical sec-
tor,sinceIndiancompaniesrely
heavily on China for key raw
materials,untilthesupplylines
arerestoredfullythere,domes-
tic firms will get hit to that
extent.Also, input prices have
gone up due to limited supply,
while the largest market, the
US,is facing a recession.
Nevertheless,large pharma
companies are seen as weath-
ering the crisis better than the
rest. A spokesperson for Dr
Reddy’s said, “The market
demand continues to be good.
However, our manufacturing
facilities are operating at
below-normal levels… and
there are challenges related to
the supply chain.”
The `12,000-crore carpet
industry, with a significant
presence in Uttar Pradesh, is
apprehending a loss of about
Rs 2,000-2,500 crore in FY21.
Sidhnath Singh, chairman of
the Carpet Export Promotion
Council,saidtheorderflowhas
already been hampered since
January, with the crisis break-
ing out in China. However, it
just exacerbated in March
when the epicentre shifted to
and if the incident had not
taken place and additional
cases had not come then the
doubling ratewould have been
around 7.4 days,” joint secre-
taryLavAgarwal said.
Agarwal said 472 new
Covid-19 cases and 11 deaths
havebeenreportedsinceSatur-
day.Thetotalcoronaviruscases
stand at 3,374 and the death
toll is now 79.He said 267 peo-
ple have recovered. However, a
PTI tally of figures reported by
states directly showed at least
106 deaths,while the number
ofconfirmedcaseshadreached
3,624. Of the total, 284 have
been cured and discharged.
There has been a lag in the
the US,which accounts forwell
over a half of our exports.
Shaji Baby John, CMD at
marine exporter Kings Infra
Ventures, said: “Vietnam and
China are still buying.But inter-
nallogisticsisaseriousproblem.”
Abroad range of farm prod-
ucts, including rice, onion,
grape, natural rubber, tea and
cashew,will likely plummet in
FY21.More than 4,500 natural
rubber dealers and one lakh
farmers in Kerala are staring at
adarkfuture,astyrecompanies
have shut production. Dealers
alone have incurred losses to
the tune of Rs 400 crore in just
the firstweek of lockdown.
According to Jagannath
Khapre, president of All India
Grape Exporters Association,
there is hardly any fresh order,
and in many cases, payments
forearliersuppliesarestuck.Ajit
Shah, president of the All India
Onion Exporters Association,
said exports in March were
alreadydown by25% from the
usual level to 75,000 tonne.
Similarly, as Tea Board
deputy chairman Arun Kumar
Ray pointed out, tea output
from the first flush in Darjeel-
ing could crash by as much as
75%,ashardlyanyharvesttook
place.WestBengal’sriceexports
have been dwindling over the
years, and the pandemic has
justworsened the situation.
Pratap Nair of Vijayalaxmi
Cashews, one of the largest
cashewexporters,said:“Ifprob-
lemswith movement of export
cargo to ports in Andhra
Pradesh,TamilNaduandKerala
notsortedoutfast,manyorders
will have to be cancelled.”
(With inputs from Sarita
Varma in Thiruvananthapu-
ram, Deepa Jainani in Luc-
know, Nanda Kasabe in Pune,
Indronil Roychowdhury in
Kolkata and Banikinkar
Pattanayak in New Delhi)
No recharge facility
for 200 m users
Though upon the direction
of the Telecom Regulatory
Authority of India, telecom
operators like Bharti Airtel,
Vodafone Idea and Reliance
Jio, last week extended the
validity of pre-paid users till
April 17 and credited an addi-
tional `10 talk-time in their
accounts, it was done on a
selective basis.
For instance, Bharti
extendedthisfacilitytoonlyits
80 million users, against its
roughly 189 million 2G users.
Similarly, Vodafone Idea has
extended the facilityto its 100
million users, against its 214
million2Gusers.Theoperators
seem to have extended this
facility to only the bottom of
the pyramid users in the 2G
category,who may be recharg-
ing forveryless amount like Rs
35-45 per month and
excluded others. The assump-
tion must have been that the
bottom of the pyramid cus-
tomers do not have access to
online modes of recharge and
use physical retail stores.
It is only Jio which has cov-
eredallofits70-80millionJio-
Phone users in the validity
extension facility. Though Jio
has a fully 4G network and
users, the ones who use Jio-
Phones are persons who use
low-end 4G phones which are
not exactly smartphones and
maynot be savvyenough to do
online recharge. BSNL and
Union health ministryfigures,
compared to the numbers
announced bydifferent states,
which officials attribute to
procedural delays in assigning
the cases to individual states.
On the shortage of per-
sonal protective equipment,
Agarwal said the government
has started the procurement
of PPEs from other countries
too. “Parallelly around the
world wherever the PPE is
available we have started pro-
curement from them too...We
have dispatched materials
also. Even today, in a video
conference,we asked states to
rationally use PPE so that no
shortage arises,”he said.
From the Front Page
MTNL have also covered their
entire pre-paid user base in
the extension facility.
Govt mulls easy
bank overdraft
norms
Currently, the Jan Dhan
scheme has 38.3 crore benefi-
ciaries who hold a total of
`1,18,434 crore in their
accounts.
Last week,the government
pledged succour to the poor
and the vulnerable – from BPL
families, Jan Dhan account
holders and construction
workers to organised-sector
employees — to cope with the
lockdown,announcing a relief
package of `1.7 lakh crore.
As part of the package,
finance minister Nirmala
Sitharaman announced the
transfer of `500 a month to
20.4 crore women Jan Dhan
account holders for three
months.This will cost the gov-
ernment `30,600 crore. The
transfer to only women
account holders was aimed at
helping the intended benefi-
ciaries (poor families) with a
minimum possible leakage.
However,fearsthatthepoor
households where no woman
hasaJanDhanaccountwilllose
out on this benefit, have
prompted the government to
consider some relief to them,
said a banking industrysource.
The government is also
gearing up for the next round
ofeconomicmeasuresthatwill
likelyfocusonneedsofspecific
sectors — including MSMEs,
exports,tourism,civil aviation
and animal husbandry —that
have been battered by the
Covid-19 outbreak.
Market arrivals
plunge yet firm rates
solace for growers
Prices of vegetables like
potato and cauliflower which
can stay fresh for a few days
without cold storage have been
rulinghigherfromyear-agolev-
els,whilethoseofhighlyperish-
ables like tomato are subdued.
Among the three key staple
vegetables, average mandi
prices of onion in Alwar,
Rajasthan, a major producing
hubinnorth,jumpednearly3.5
timesto`1,967/quintalduring
the second fortnight of March,
from `570/quintal ayearago.
Average prices of potato in
Agra,UP,weremorethandouble
at`1,328/quintalduringMarch
15-31, against `602/quintal a
year ago. Cauliflowers in
Dehradun, Uttarakhand, was
83% higher at `1,292/quintal
y-o-yfrom `707/quintal.
Ontheotherhand,therehas
beenasignificantdropinprices
of tomato as its average mandi
rates in Kolar, Karnataka,were
downby56%toRs569/quintal
duringMarch15-31,againstRs
1,295/quintal in the year-ago
period.Ladies finger was down
by 36% at Rs 1,453/quintal
from Rs 2,275/quintal in Kar-
nataka’s mandis.
Traders in Delhi, however,
said prices of fruits andvegeta-
bles vary from state to state as
per demand,and cited the offi-
cial rates at theAzadpur mandi
toclaimthatthecurrentratesof
most vegetables are 40-60%
lowerthan theyear-ago period.
On Tuesday, average price of
cauliflowerwasRs725/quintal,
ladies finger Rs 3,050/quintal,
Trump seeks Modi’s help to release
‘game-changer’ drug ordered by US
LALIT K JHA
Washington, April 5
PRESIDENT DONALD TRUMP
has sought help from Prime
Minister Narendra Modi to
allow the sale of Hydroxy-
chloroquine tablets ordered by
the US to treat the growing
number of coronavirus
patients in his country, hours
after India banned the export
of the anti-malarial drug.
Trump said he spoke to
Modi on Saturday morning
and made a request to release
Hydroxychloroquine — an old
and inexpensive drug used to
treat malaria — for the US.
“I called Prime Minister
Modi of India this morning.
They make large amounts of
Hydroxychloroquine. India is
giving it a serious considera-
brinjal Rs 1,300/quintal and
cabbage Rs 500/quintal at
Azadpur,these traders said.
Brij Nandan, a farmer from
Badaun district in Uttar
Pradesh growing fruits and
vegetables in Noida for the last
fiveyears,saidheishitbadlyby
thelockdown.“Everyday,weare
returningfromthemandiwith
the half-sold cart as there is no
demand. Earlier, we had the
option to move from one vil-
lage to another,”said Nandan.
Aware of the hardships
faced by farmers like Nandan,
the Centre is discussing with
states to ensure supplies of
fruits and vegetables reach at
retaillevelstoboostdemandin
mandis, so that farmers can
access the markets to sell their
produce without any hin-
drance.Withhotelsandrestau-
rantsbeingclosedandmanyof
the food processors running
their plants at lower capacity,
the government is considering
if mobilevans could be pressed
into service for selling fruits
and vegetables.
“We are working on both
ends as farm gate price is also
dependent on functioning of
the entire supplychain,partic-
ularlythe offtake from mandis
by retailers. Since several fac-
tors are responsible to ensure
that the entire system works,
we have been working closely
with the states and removing
every bottlenecks,” an agricul-
ture ministry official said.
Drinking water secretary
ParameswaranIyer,whoishead-
ingthegrouponfacilitatingsup-
ply chain and logistics manage-
mentforavailabilityofessential
commodities, took a briefing
fromallministriesconcernedon
the first day itself after it was
formed, and has been holding
meeting daily,sources said.The
primaryfocusofthecommittee
is on food and medicines,
sourcessaid.Hehasdirectedoffi-
cials to find out demand and
reachouttothoseplaces.
As many as 1,600 mandis
selling fruits andvegetables are
operational now, but several of
thosemandishadreportedsub-
dued demand for further off-
take. For instance, about 30
truckloads of fruits andvegeta-
bles could not be sold in Vashi
last Saturday and the state
mandi board officials shifted
them to Mumbai. Most of the
mandis in Maharashtra face
labour shortage as migrant
workers have returned to their
villages while those still there
are not turningup forworks.
Traders in Delhi’s Azadpur
mandi said some migrant
workers have gone to theirvil-
lages, but overall there is not
muchimpactontheirbusiness
due to this as the demand is
lower. Things are though
improving from aweekearlier,
the real challenge is how to
increase demand,traders said.
“Everyone is scared. People
arenotcomingouttobuyfruits
andvegetableswhilehotelsand
restaurants are closed.In some
places,retailershavealsoclosed
their shops,” said Rajinder
Sharma,formerchairmanofthe
agriculture produce market
committee,Azadpur.
Only 25-30 truckloads
(capacity of 15/25 tonne,each)
of onion could be sold on Mon-
day while on a normal day it
could have been 60-70,he said.
Besides the lockdown, people
arenotbuyingonionduetocur-
rent Navratri festival. Onion is
Govt tightens export ban
norms for anti-malarial drug
THE GOVERNMENT HAS
tightened the export ban
norms on anti-malarial
drug hydroxycloroquine by
including special economic
zones(SEZs)underitsprohi-
bitionambittoensurethere
is no shortfall during the
Covid-19 crisis.
The drug is also not
allowed to be shipped by
export oriented units
(EOUs) or under any export
promotion scheme.
“The export of hydroxy-
cloroquine and formula-
tions made from hydroxy-
cloroquine...is no longer
selling at `14-20 kg atAzadpur
while retail prices are around
`40/kg in NCR. Potato and
tomato are also sold around
`40/kg in retail markets.
AccordingtoSudhirPanwar,
president of Kisan Jagriti
Manch, farmers are currently
holdingtheirvegetablecropsas
much as possible since there is
labour shortage in villages.
Those migrant workers who
havereturnedtovillagesarenot
willingtoworkonthefieldwhile
the farm workers have refused
to come out of their homes on
coronafear.“Itisverydifficultto
get farmworkereven atvillages
as police is not allowing at local
levels. The situation has to be
eased in next 7-10 days other-
wise huge quantities of vegeta-
bles,which are not kept in cold
stores,will rot,” Panwarsaid.
Subhash Deshwal, a retired
colonelgrowingcarrotsinSikan-
darabad of UP’s Bulandshahr
district, said: “I used to send
about 35 tonne to Delhi market
before lockdown.But,currently
able to send a third of that as
there is huge drop in demand.
Besides,drivers are not ready to
transportasalldhabasandsmall
restaurants are closed. I have
arranged to put the unsold car-
rotatcoldstores,butthereisalso
a limit to the space there and
unlessmarketimproves,itisdif-
ficulttosellthesecrops.”
Mandi prices of
many rabi crops
fall below MSPs
ChanainMPhadaslowstart
witharrivalsofthefreshcropat
about 26,000 tonne so far.
Guna district had the highest
3,940 tonne of arrivals during
March16-21.Averagepricewas
`3,725/quintal,24%belowthe
MSP, on March 21 at the
Kumbhraj mandi in Guna.
Prices were at same level in
othermajorproducingdistricts
like Rajgarh, Dewas, Khargone
and Vidisha. Farmers have
stoppedbringingthecropsince
then due to lockdown.
Masur arrival at Bina in
Sagar district of MP stopped
after March 20 when the price
was`4,250/quintalagainstthe
MSP of `4,800. Sagar district
saw the largest arrival in MP
since March 16 before lock-
down put everything to a halt.
Shivpuri,Raisen,Vidisha,Ashok-
nagar, Shajapur, Damoh and
Rajgarhareothermajorproduc-
ing districts of masur in MP,
country’s largest producer.
Rajasthan,thecountry’stop
producer of mustard,has so far
seen arrival of nearly 94,000
tonne of the crop since March
16.Average farm-gate price in
Niwai mandi in Tonk district
was `3,605/quintal as on
March 19,which is 19% lower
thanitsMSP.Mandipriceswere
below MSP in other major pro-
ducing districts such as Alwar,
Baran, Dausa, Kota, Swai Mad-
hopurand Bharatpur.
“Thisyear,themustardhar-
vest was delayed due to late
planting as normally the crop
starts coming to mandis
around end of February. The
Rajasthan government has
postponedtheofficialprocure-
mentafterlockdown.Therewill
be rush to sell crops once man-
disareopen,”saidfarmerleader
Rampal Jat. Unless the govern-
mentmakesnecessaryarrange-
ments forprocurement at MSP
withoutputtinganyrestriction
on quantity to be sold, prices
WWW.FINANCIALEXPRESS.COM
AFTER LOCKDOWN
❝
Ramesh Pokhriyal Nishank, Union HRD minister
It is difficult to take a decision at the moment. We
will review the situation on April 14 and depending
upon the circumstances, a decision will be taken on
whether schools and colleges can be reopened
now or have to be closed for more time.
allowed from SEZs/EOUs or
against Advance Authorisa-
tion or against full advance
payment...The export shall
remain prohibited without
any exception,” the direc-
torate general of foreign
trade (DGFT) has said in a
notification. — PTI
will be depressed as the oilseed
crop is also good,Jat said.
He suggested the govern-
ment to allow the notified
agency, Nafed, to buy oilseeds
andpulsesatMSPsthroughthe
e-NAM portal. When the gov-
ernment has authenticated
data of over 9 crore farmers
under the PM-Kisan, it should
use that information for pro-
curement of crops,he said.
The FCI buys about 30% of
wheat and paddy produced in
the country and the quantity
has been increasing everyyear,
puttingaburdenonthefirmto
dispose of the surplus.
UjjaindistrictinMPreceived
the highest arrival of wheat in
thestatesinceMarch16andthe
average price was 4% lower at
`1,850/quintal on March 21.
However, with the opening of
official procurement centres,
wheat has increased to its MSP
levelof`1,925/quintalinUjjain
and manyothermandis.
MP, the third-largest con-
tributor of wheat to the central
Pool managed by the FCI, has
seen arrival of about 3.5 lakh
tonne of the grain since mid-
March as farmers in the state
normally harvest earlier than
Punjab and Rajasthan due to
riseintemperature,officialsaid.
A longer lockdown?
Here is what
researchers
have to say
However, it projects 161
cases per 100,000 population
by the third week of May in the
‘nointerventionscenario’versus
a 1 case per100,000 in the case
of a lockdown.The case counts
areadjustedfortheoverallpop-
ulation based on data for states
thathadreportedhighCovid-19
incidence when the study was
beingdone.Thestudy,however,
advocates wider testing, effec-
tive quarantining of infected
cases and targeted restrictions
over a blanket isolation move
likethelockdown,giventheeco-
nomic impacts of such a move.
The second, a study by two
India-origin researchers at the
University of Cambridge, is
based on the SIR approach,but
takesintoaccountageandsocial
contact structure to assess the
impact of the lockdown and
social distancing steps adopted
beforeit.Thisstudyfindsthatthe
impact of a 21-day lockdown
may not be much, given there
will be resurgence in infection
withinthenext3-4weeks.How-
ever, a three-phased lockdown
(21-days/28 days/18 days,with
a 5-day partial lifting between
the phases) and a single,contin-
uous lockdown of 49 days will
likely help India fight spread
mosteffectively.WithaR0of2.1
(everyinfectedindividualpasses
on the infection to a further 2.1
individuals),in a no mitigation
effort scenario, the study esti-
mates a peak case load of 150
millionbyJuneend,assumingall
cases of infection are infective.
Theauthorsclarifythenumbers
are “counterfactuals” as social
distancing and lockdown mea-
sureshavebeenundertaken.
The third (revised and
accepted March 31, available
onlineApril2),apre-proofstudy
by researchers from the Armed
Forces Medical College, Pune,
and INHS Asvini, Mumbai,
paints the most optimistic sce-
nario of the lockdown. It esti-
mates,without any non-phar-
❝
tion,’ Trump said at his daily
news conference on Saturday.
The Directorate General of
Foreign Trade on April 4
banned the export of Hydrox-
ychloroquine and its formula-
tions with immediate effect
and made it clear that there
will be no exceptions.
Trump said he would app-
reciate if India releases the
amount of Hydrocoralline that
the US has ordered.“And I said I
would appreciate if they(India)
wouldreleasetheamountsthat
we ordered,” he said, without
mentioning the quantity of
Hydroxychloroquine ordered
bythe US firms from India.
Basedonsomeinitialresults,
the Trump administration is
banking heavily on using the
drug for the successful treat-
ment of coronavirus. — PTI
macological interventions
(NPIs),Indiawouldhaveseeover
364millioncasesand1.56mil-
lion deaths by mid-July. This
model estimates a bending of
the incidence curve as effective
quarantine of infective cases
reaches 50% or more with a
lockdown — if implemented in
the last week of March, this
could push total active infec-
tions by May 25 to 2.4-5.7 lakh
withaCovid-19hospitalisation
demand of 10,000-12,000.
Against this projection, an
April 2 modelling by the Cen-
ter for Disease Dynamics,Eco-
nomics and Policy, talks of a
total hospitalisation demand
of 4.75 lakh across the country
inascenariowhere0.5%ofthe
population ends up infected in
the current outbreak.
While all these models will
help the country design an
appropriate policy response,
there are many uncertainties
andvariables (forinstance,the
impact of BCG vaccination on
transmission that is being
studied at the moment) that
can’t be built into models.
Pattern emerges:
80% cases reported
from 62 districts
Thenumberofdailytestshas
almost doubled in the last two
days, from 5,800 on April 2 to
10,034 on April 4.Sources said
effortsareonto“doubleagainin
the next few days”. One of the
strongest criticisms of India’s
Covid-19strategyhasbeenthat
notenoughtestsarebeingdone.
A total of 79,950 samples had
been tested tillApril 4.
On Saturday, the ICMR
issuedanadvisoryfortheuseof
rapid antibody tests in some
areas.The results of these tests
have to be informed immedi-
atelyto the ICMR.
Inalettertohealthsecretary
Preeti Sudan, Dr Balram Bhar-
gava,Secretary,HealthResearch,
wrote: “Overall testing for
Covid-19 using real-time RT
PCRis increasing andwewill be
approaching full capacity in
nearfuture.Atthesametime,we
are expecting delivery of Rapid
Test kits (blood based) foruse in
response to Covid-19 situation.
ln this regard, National Task
Force deliberated with experts
for ascertaining use of these
rapid test kits.”
In a video conference with
district magistrates across the
country,CabinetSecretaryRajiv
Gauba emphasised the level of
preparedness “to the level of
being overprepared”, health
ministry joint secretary Lav
Agarwal said at a dailybriefing.
Gauba directed all DMs to
ensure smooth operations of
the pharma units for manufac-
turing medicines and medical
equipment. All districts have
beenadvisedtodrawupaCovid-
19 crisis management plan.
India is also pressing into
serviceCBNAAT(cartridgebased
nucleic acid amplification test)
machines forCovid-19 tests.
Agarwal said the personal
protectiveequipment(PPE)sit-
uation has improved after
some“initialshortages”asthey
were being imported. “How-
ever, now domestic manufac-
turers have started production
and we are procuring more of
them.We have sent all the ini-
tial stocks to the states on the
basis of the case load but have
asked states and DMs to ratio-
nalise their use,”he said.
WWW.FINANCIALEXPRESS.COM
FINANCIAL EXPRESS
● POST-LOCKDOWN STRATEGY
Staggered flight ops
likely after April 14
PRESS TRUST OF INDIA
New Delhi , April 2
THE GOVERNMENT IS likely
to allowdomestic and interna-
tional flight operations in In-
dia in a staggered manner af-
ter the 21-day lockdown is
lifted onApril 14 midnight,of-
ficials said on Sunday.
The aviation sector has
been hit hard by the coron-
avirus pandemic. On Sunday,
Air Deccan became the latest
casualty of the crisis as it an-
nounced indefinite suspen-
sion of flight operations and
asked all employees to go on
sabbatical without pay.
"As the virus is still spread-
ing in India,we are thinking to
permit domestic and interna-
tional flight operations post
April 14 in a staggered man-
ner. Airlines are free to take
bookings for any date post
April 14,"a seniorcivil aviation
ministry official said.
"However, if the lockdown
is extended post April 14, air-
lines will have to cancel the
tickets booked for that time
period,"the official noted.
All majorairlines exceptAir
India are taking domestic
In talks with
three firms
to produce
ventilators: MG
Motor India
PRESS TRUST OF INDIA
New Delhi, April 5
MG MOTOR INDIA is in talks
with three medical device
makers, including GE, to pro-
duceventilators at its Halol fa-
cility to help meet demand
during the coronavirus pan-
demic,according to a top com-
pany official.
The company, which has
also launched a hunt for a low-
cost ventilator design through
a challenge, is also developing
its ownventilatorand hopes to
be ready with a prototype
within a week as part of its
three-pronged approach to get
intoventilator manufacturing
considering the shortage dur-
ing this health crisis.
“We are talking to medical
equipment companies like GE
and some other companies,
which alreadyhave established
and approved designs. If they
can tell us, then we can start
manufacturing based on their
design in our plant,” MG Mo-
tor India president and man-
aging director Rajeev Chaba
said.
He further said all three
companies have responded
positively and that can be the
fastest solution if there is a de-
sign approved by the medical
bodyalreadyand everything is
in place.
Besides, he said,“In the last
10 days, our engineering team
is busymaking a prototype.I'm
happy to say that we have al-
ready made the drawings and
everything. We have talked to
the medical experts,ourproto-
type should be ready in the
next one week. If that proto-
type is approved,then our own
designed ventilator can be
manufactured byMG in India.”
However,this approachwill
take some more time as it
needs regulatoryapprovals,he
added.
The company has also an-
nounced a `10 lakh grant
through its “challenge to
youngsters and young engi-
neers that if theywant to make
a low-cost design,we are going
to help them”,Chaba said.
On the manufacturing of
ventilators, he said MG Motor
Indiawill create infrastructure
at its Halol facility and would
even carve out a separate unit
if need be.
“Ifthecardemandisnottoo
much in future then my exist-
ing manpowercanwork on this
project. We may have to have
some newcapex forthis kind of
a thing, although I don't know
exactly how does that look like.
But thenwewill look at putting
the right capex into this project
tomaketheventilators,”hesaid.
On the other hand, Chaba
said if the demand for the
company's vehicles continues
and have waiting period as it is
now and “if our people get
busy making the cars,I feel we
would carve out a separate
unit for ventilators.”
bookings for dates post April
14.AirIndia is taking bookings
for dates post April 30 only.
As it has sent all employees
on sabbatical without pay, Air
Deccan is not taking anybook-
ings and it is not clear when it
would restart operations.
As revenues have fallen sig-
nificantly, IndiGo has an-
nounced a pay cut of up to
25% for its senior employees
and Vistara has announced a
compulsory leave without pay
Modi discusses Covid-19 Lockdown to have deeper impact, 52% Amended mining law
situation with Sonia, foresee job losses: CII CEOs Snap Poll
Manmohan and Pranab New PRESS TRUST OF INDIA
Delhi, April 5
PRESS TRUST OF INDIA
New Delhi, April 5
PRIME MINISTER NARENDRA
Modi on Sunday reached out
to top leaders from across the
political spectrum, including
Congress president Sonia
Gandhi and TMC chief Ma-
mata Banerjee, to discuss the
situation arising out of the
spread of coronavirus.
He also spoke with former
presidents Pranab Mukherjee
and Pratibha Patil,and former
prime ministers Manmohan
Singh and HD Deve Gowda,
sources said.
The discussions with the
top leaders were part of con-
sultations the prime minister
is holding with various stake-
holders on the way ahead,
they said.
He also called up leaders of
various political parties, in-
cluding Mulayam SinghYadav
and Akhilesh Yadav (Sama-
jwadi Party), Odisha CM and
BJD leader Naveen Patnaik,
Telangana chief minister and
TRS leader K Chandrashekhar
Rao, DMK leader M K Stalin
and SAD leader Parkash Singh
Badal.
Amid a countrywide lock-
BPCL develops faster, cheaper tech to
assay crude; in talks with multinationals
PRESS TRUST OF INDIA
Mumbai, April 5
THE COUNTRY'S SECOND
largest national oil marketer,
Bharat Petroleum Corp (BPCL),
has developed a novel technol-
ogy to test the quality of crude
oil at a fraction of the cost and
time that it takes now through
the lengthy lab tests.
The technology,which has a
number of patents including
thosefromtheUSandtheEU,is
a ‘crude horoscope predictor
tool’called BPMarrk,which can
optimise varied properties
from the crude.
The company was also in
talkswithleadinginternational
players in the crude-assaying
industry like Aspen, the largest
inthesegment,Honeywell,and
Emerson,RRamachandran,di-
rector (Refineries), BPCL,said.
“The traditional way of as-
saying takes 30-45 days for a
complete testing and the cost
averages at `25 lakh. But the
BPMarrktakes around 30min-
utesforafour-stagetest.Wecan
offer it at a fraction of the pre-
sent cost but we haven't de-
cidedonthepricingpartyet,” he
told PTI.
Ramachandranalsosaidthe
company was planning to use
the technology as an advance
controlproductforproductop-
timisationandwasgoingtoap-
ply for patents for this as well.
On talks with American
bodies, he said,“We have made
presentations to Aspen, Emer-
son and Honeywell but no deal
has been finalisedyet.”
of up to three days for its se-
nior employees in March.
SpiceJet has stated that its
employees' salaries would be
reduced between 10% to 30%
and Air India has announced a
10% cut in allowances for
every employee, except cabin
crew, for the coming three
months.GoAir has cut salaries
of its employees,laid off its ex-
pat pilots and introduced leave
without pay for employees on
a rotational basis.
mand slowdown in the post from green clearance
lockdown period.
The PM called up leaders
of various political parties,
including Mulayam Singh
Yadav, Akhilesh Yadav,
Naveen Patnaik,
K Chandrashekhar Rao,
M K Stalin & Parkash
Singh Badal
down due to Covid-19, Prime
Minister Modi will interact
with floor leaders of various
political partiesvia avideo link
onApril 8.TheTrinamool Con-
gress has said itwill not attend
the virtual meet.
The prime minister has in-
teracted with chief ministers,
top bureaucrats,doctors,para-
medics, nurses, Indian diplo-
mats and journalists on the is-
sue of dealing with the health
crisis of this magnitude.
The technology, which
has a number of patents,
including those from the
US and the EU, is a ‘crude
horoscope predictor tool’
called BPMarrk, which
can optimise varied
properties from the crude
BPCL has been developing
the technology since FY16 and
reached commercial produc-
tion stage two years ago.
Since then, it has made a
detailed presentation to the
American Petroleum Institute
which is the global body that
codifies the testing standards
for the industry.The institute
was keen to develop this tool
as an alternate standard, pro-
vided BPCL shared the entire
details, but the company re-
fused, a source at the com-
pany said.
A salient and industry-
India has imposed a 21-day
lockdown from March 25 to
curb spread of the coronavirus
pandemic.Consequently,alldo-
mestic and international com-
mercial passenger flights have
been suspended for this time
period. However, cargo flights,
offshore helicopter operations,
medical evacuation flights and
special flights permitted by In-
dian aviation regulator DGCA
arepermittedtooperateduring
this lockdown.
exempts several activities
THE CORONAVIRUS OUT-
BREAK and the subsequent
nationwide lockdown has
deeply impacted India’s econ-
omy, with a majority of the
firms expecting a significant
decline in revenues,falling de-
mand and job losses,according
to a CII CEOs Snap Poll.
The online survey saw a
cross-country participation of
around 200 CEOs across sec-
tors.“The survey results indi-
cate that a significant majority
of the firms expect revenues to
fall more than 10% and prof-
its to decline more than 5% in
both the current quarter (Apr-
Jun 2020) as well as the pre-
ceding quarter (Jan-Mar
2020),”CII said.
“The expectations of this
sharp decline in both revenue
and profit growth bydomestic
firms could foretell the signif-
icant impact of this outbreak
on GDP growth,”CII stated.
On the jobs front, about
52% of the firms foresee job
losses in their respective sec-
tors,resulting from the impact
of the coronavirus outbreak
and the ensuing lockdown.
While the proportion of
jobs that are expected to be
cut are quite staggered, sig-
friendlyuse of the tool is that it
can help update the crude as-
says of oil wells wherein the
properties get changed with
ageing, according to Ra-
machandran.
“Gone are the days of
lengthy laboratory tests called
assaying for crude. The R&D
team of Bharat Petroleum has
developed a crude horoscope
predictortoolcalledBPMarrkto
correctlypredictcrudeoilprop-
erties,”he said.
Describing theirinnovation
asagame-changer,Ramachan-
dran said BPMarrk can predict
around 500 properties of any
crude using four parameters
and can help generate the out-
put within an hour compared
to the other conventional
processes which require three-
four weeks of laboratory test-
ing.
The tool has been built by
testing more than 100 types of
crudes from different regions.
This universal tool can be
used by multiple stakeholders
acrossthecrudevalue-chainfor
fast business and operational
decisions related to crude-buy-
ing/bookingand price negotia-
tions.
BPMarrk can also enable oil
suppliers, international trades
and supply-chain optimisation
for advanced planning, crude
selection and also for process
engineersforunit-leveloptimi-
sation of refineryoperations.
BPCL is in the process of
partneringwithaleadinginter-
national consultant for real-
time optimisation.
Masks, screening health status and social
distancing: Rlys gears up to restart trains
ANANYA SENGUPTA
New Delhi , April 2
FROM ENCOURAGING SO-
CIAL-DISTANCING onboardto
asking passengers to wear face
masks and using the Arogya
Setu app to check their health
status before letting them in,
therailwaysismullingoversev-
eral proposals for its post-lock-
down operations.
While no decision has yet
been taken on when the pas-
senger services, which were
suspended in the wake of the
coronavirus lockdown from
March 25, will be resumed,
officials said it is likely to be
done in a phased manner af-
ter a green signal from the
government.
A decision, officials said, is
likelyto be taken in the coming
week on how to restore ser-
vices. They said the railways
has discussed the option of re-
suming services only on spe-
cific approval of each train
from the Railway Board. Sug-
gestions on phase-wise re-
sumption have to be provided
by the zone to the board.
"These are sensitive times
and we are not looking in
terms of revenue generation
for now. The focus is on pas-
senger safety and to ensure
that the disease does not
spread. Trains will run in due
course, once the government
gives us the green signal.How-
SURVEY SAYS
■ Majority of the firms
expect revenues to fall
more than 10% &
profits to dip more
than 5% in current
quarter as well as the
preceding quarter
■ On the jobs front,
52% of the firms
foresee job losses in
their respective sectors
■ 47% of the firms
expect less than 15%
job losses
■ 32% of the firms
expect to shed about
15-30% of jobs once
the lockdown ends
nificant proportion of the
firms (47%) expect less than
15% job losses, while 32%f
the firms expect to shed
about 15-30% of jobs once
the lockdown ends.
Further,most firms (80%)
claimed that their inventory
was lying idle at present.
However, more than 40%
of the firms expect theirstocks
to last beyond a month once
the lockdown ends — indicat-
ing their expectations of a de-
PM-CARES Fund:
PSBs,FIs,finmin staff
donate `430 crore
FE BUREAU
New Delhi, April 5
STATE-RUN BANKSAND other
financial institutions, and the
employees of the finance min-
istry have donated as much as
`430.13 crore to the PM-
CARES Fund to help those ad-
versely affected by the Covid-
19 outbreak.
Life Insurance Corporation
(LIC) leads the pack,with a con-
tribution of `105 crore,closely
followed by the employees of
StateBankofIndia(`100crore).
Other notable contributors
were IIFCL(`25 crore),employ-
eesoftheCBDTandthedepart-
ment of revenue (`25 crore),
GeneralInsurance(`22.8crore),
BankofBaroda(`20crore),Pun-
jab National Bank,Canara Bank
and SIDBI (`15 crore each),
Bank of India and Oriental In-
surance (`10 crore each).
The employees of the de-
partments of economic affairs
and expenditures donated `15
ever as of now, we have not
taken any decision,” said a se-
nior officer.
In the zones, officials are
also identifying trains and
routes which can be resumed
with the approval of the board.
The focus,sayofficials,is to see
if routes catering to migrant
workers can be resumed ini-
tially and also those that are
not travelling or has halts at
Covid-19 hotspots.
Officials added that the
railwayswill also have to factor
in how the lockdown is even-
tually opened. If it is selective,
then trains will only run in ar-
eas where lockdown is lifted,
officials said.
The railways is also unlikely
to rescind a March 19 order
suspending all concessions for
passengers except those of-
fered to patients,students and
people with disabilities in a
hurry,even after the lockdown
According to the survey, a
majorityof the firms engaging
in production of essential
products and supply of ancil-
lary goods are facing con-
strained operations during the
lockdown.
Firms have revealed that
access to manpower and
movement of products have
emerged as major constraints
in essentials trade,be it manu-
facturing or warehousing and
transport or retail sales of
these essential commodities.
While the government has
allowed manufacturing,trans-
portation and distribution of
essentials, the enforcement at
the local level has imple-
mented the lockdown on es-
sential commodities as well as
services, said the Confedera-
tion of Indian Industry (CII).
“The government could an-
nounce a fiscal stimulus pack-
age forthe industryand imple-
ment it on fast track mode,
given that the sudden imposi-
tion of the lockdown has sig-
nificantly impacted indus-
try operations and the
uncertainty of a recovery
threatens substantial loss of
livelihoods going forward,”
CII director general Chan-
drajit Banerjee said.
lakh,while those of the de-
partments of expenditure,
financial services and Sebi
contributed`9lakh,`7lakh
and `50 lakh,respectively.
The contributions are in
the form of employees con-
tributingaday’ssalaryorthe
entities donating from their
corporatesocialresponsibil-
ity (CSR) and other cor-
puses.While `22.84 crore
came from employees’
salary, another `201.79
crore was from the
CSR/other sources, accord-
ing to a statement by the fi-
nance ministry.
ThePrimeMinister'sCit-
izenAssistance and Relief in
Emergency Situations Fund
(PM CARES Fund) was cre-
ated on March 28. Its pri-
maryobjectiveistodealwith
any kind of emergency or
distress situation as posed
by the Covid-19 pandemic,
and to provide relief to the
affected people.
ECONOMY
period to discourage unneces-
sary travel.
The railways, officials said,
are also discussing protocols
that need to be followed once
services begin to ensure safety
of passengers.
They are mulling options
like thermal screening and
othermethods to scan passen-
gers boarding trains.
"Once the services are re-
sumed, we are thinking of re-
questing passengers to wear
masks as per the health min-
istry advisory. We are also
thinking of using the Arogya
app to check the health and
wellness of patients and allow
only healthy passengers to
board trains,”an official said.
As part of its preparedness,
the Railways has also asked
zones to ensure the security of
coaches parked in depots.
Officials said once the ser-
vices resume full throttle,they
REMOVAL OF SAND deposits
from agricultural fields after
floods will not require green
clearance now,with the Centre
amending the Mines and Min-
erals (Development and Regu-
lation) Act. In its notification,
the ministry of environment
has saidthatextraction ofordi-
nary clay or sand by manual
mining,bythekumhars(potter)
toprepareearthen pots,extrac-
tion of clay or sand by manual
mining by earthen tile makers
shall be exempted from the
conditionofacquiringenviron-
mental clearance.
“The ministry of environ-
ment, forest and climate
change is in the receipt of rep-
resentations for waiver of re-
quirement of prior environ-
mentalclearanceforborrowing
of ordinaryearth forroads; and
manual extraction of lime
shells (dead shell) etc., within
inter tidal zone by the tradi-
tional community,” the min-
istrysaidwhilemakingamend-
Careers
EXPRESS
GUJARAT UNIVERSITY
Ahmedabad
ADVERTISEMENT
MONDAY, APRIL 6, 2020
3
expect overcrowding at sta-
tions and measures have to be
chalked out on how to deal
with them.
The focus now for railways,
the officials said, is to ensure
that the rakes of passenger
trains, which were suspended
due to the lockdown, had re-
turned to their respective
bases,received propermainte-
nance like charging of batter-
ies,cleaning of bio-toilets,and
were ready to return on the
tracks once the resumption is
announced.
Officials also said railway
minister Piyush Goyal is keen
that the railways concentrate
on ensuring that the different
zones continue theirefforts to-
wardscontributinginthelarger
fight against coronavirus.Rail-
wayPSUshavealreadycommit-
ted to converting around 5000
coaches as isolation wards ini-
tiallywhich are likely to be sent
in rural areas that do not have
hospitals.
The Railways has also of-
fered its hospitals for infected
patients and are producing es-
sential medical goods like
masks, sanitisers, PPEs. The
minister has given instruc-
tions that proper planning
should be done for cleaning of
linens, sanitation and proper
disposal of biomedical waste
that is expected to be gener-
ated at hospitals and isolation
coaches. — PTI
ments in mineral laws.
It said exemption from the
requirement of environmental
clearance shall also be given to
“Removal of sand deposits on
agriculturalfieldsafterfloodby
farmers.Customary extraction
ofsandandordinaryearthfrom
sources situated in Gram Pan-
chayat for personal use or com-
munitywork invillages.
“Communityworks,like,de-
silting ofvillage ponds ortanks,
construction of village roads,
ponds or bunds undertaken in
Mahatma Gandhi National
Rural Employment and Guar-
antee Schemes, other Govern-
ment sponsored schemes and
community efforts. Extraction
or sourcing or borrowing of or-
dinary earth for linear projects
such as roads, pipelines, etc.
Dredging and de-silting of
dams, reservoirs, weirs, bar-
rages, river and canals for the
purpose of their maintenance,
upkeep and disaster manage-
ment.” — PTI
 4 FINANCIAL EXPRESS
Infrastructure
MONDAY, APRIL 6, 2020
● HIGHWAY CONSTRUCTION
New hurdle on path of growth
After a fiscal that saw the
pace of work slowing
down, a first for the
NDA govt, FY21 is likely to
be impacted by Covid-19
and its aftermath
SURYA SARTHI RAY
EVEN BEFORETHE onset of the Covid-19
crisis,fiscal 2019-20 had been an oddyear
forhighwayconstructioninIndia,withthe
pace of work slowing down for the first
time since the Narendra Modi govern-
ment assumed powerin 2014,largelydue
to the general elections in May and a liq-
uidity crunch. The outbreak of the pan-
demic has only made matters worse.
Besides the stoppage of work that lock-
downs to contain the disease have caused,
thereareapprehensionsoflabourunavail-
abilityhittingworkintheaftermathofthe
crisis. To put it into perspective, nearly
4,076 man-days are required for the
construction of one km of highways.
“Labour availability is going to remain
a challenge until the Covid-19 issue sub-
sides.Thiswill impact constructionwork,”
says ICRA’s vice president Rajeshwar
Burla.Apart from uncertaintyovertheend
of the crisis, sector experts fear that
migrantworkerswho have moved to their
native places may choose to stay there,
Quick
View
Power consumption
fell by 9.24% y-o-y to
100.13 BU in March
INDIA’S POWER CONSUMPTION fell
by 9.24% y-o-y in March, mainly on
account of lower commercial and
industrial demand stemming from
the lockdown imposed to fight
COVID-19. According to National
Load Dispatch Centre data, energy
consumption stood at 100.13 billion
units (BU) in March compared to
110.32 BU a year ago. The data
showed that power demand remained
quite low from March 22-31, when
the lockdown came into effect,
compared to the March 1-21 period.
The peak power demand met during
the first three weeks of the month (till
March 21) was recorded at 170.17 GW
on March 3. In the remaining ten days
of the month, peak power demand
met of 145.49 GW was recorded on
March 23. Therefore, the data
suggests that the peak power demand
met fell by about 25 GW or 17%.
Suzlon resolution plan gets
nod from creditors panel
THE COMMITTEE OF creditors (CoC)
of beleaguered wind energy producer
Suzlon Energy has approved the
resolution plan by 100% vote, the
company said in a release to the stock
exchanges last Monday. The CoC was
led by State Bank of India (SBI).“The
resolution plan was put to vote by the
consortium of lenders and has since
been approved by 100% of lenders by
value, and 100% of lenders by
numbers,” the company said.
According to sources, the current
proposal by the promoters implies
around 60% haircut for lenders on a
total exposure of `12,785 crore. FE
had reported days earlier on lenders
voting on the Suzlon resolution plan
despite Covid-19 constraints.
ONGC says new gas prices
unsustainable for business
OILAND NATURAL Gas Corp (ONGC) has
said it would lose about `4,000 crore in
revenue and start making cash losses
owing to the decision to slash natural gas
prices by a steep 26% from April 1.Prices
of natural gas have been cut to $2.39 per
million British thermal unit.“These rates
are unsustainable for us.We have already
told the government that the gas pricing
should be freed,”ONGC CMD Shashi
Shanker said last week.
2014-15 12.1
2015-16
2016-17
2017-18
2018-19
2019-20*
*Till February, 2020; Source: MoRTH
returning only if they don’t find suitable
jobs back home.
Infact,highwayconcessionairesstarted
facing a labour issue before the Centre
announced a 21-day lockdown beginning
March 25. The imposition of a lockdown
across 75 districts prior to the national
lockdownresultedinconcessionaireshav-
ing to stop work on many stretches. Any
extension of the lockdown would thus
delayworkbeingresumedandthegovern-
ment’sambitiousagendaforhighwaycon-
Startups
● INTERVIEW: YUKI KAWAMURA, Principal, AET Fund
‘Indian entrepreneurs are sensitive to
local consumer preferences‘
Akatsuki EntertainmentTechnology Fund
(AETFund)isaventurecapitalfundestab-
lished by Akatsuki Inc, a gaming-enter-
tainment company based in Japan. The
fund invests in new forms of entertain-
ment technology, content and service
startupsutilisingAugmentedReality(AR),
Virtual Reality (VR), and Mixed Reality
(MR). In India, it has made more than
15 investments since the fund was
launched including in ventures such as
SuperGaming,Doubtnut,Wysh and Little
Black Book. Yuki Kawamura, Principal,
AET Fund, tells Banasree Purkayastha
that the fund is keen on backing
startups offering vernacularcontentsolu-
tions to the next billion users coming from
‘Bharat’.Excerpts:
What are the areas of interest for AET
Fund in India?
Principallywe aim to invest in heart-
driven businesses that are bringing joy-
ful products and solutions to their
consumers.We have invested across seg-
ments including content, media, gam-
ing, and entertainment and we see ver-
nacular content as a huge opportunity
waiting to be tapped in India. Data pen-
etration hasgrownintierIIandIIItowns
and the vernacular content market is
seeing an upsurge in terms of invest-
ments and monthly user growth.
However, the segment is largely unex-
plored with a large demand-supply gap.
With the next billion users coming
from ‘Bharat’, we want to partner with
● FUND RAISE
Arali Ventures, CIIE.CO
lead $500,000 funding
round in Unbox Robotics
The warehouse automation
startup is building logistics
automation solutions
using robotics and AI
SUDHIR CHOWDHARY
UNBOX ROBOTICS IS a modern-day
venture that uses advanced technology
to solve some of the teething issues fac-
ing logistics providers. Founded by
Pramod Ghadge and Shahid Memon,
Unbox Robotics is building logistics
automationsolutionsusingroboticsand
AI, with a focus on new-age logistics,
which requires systems that are com-
Highways
construction
Per day construction
16.6
(km)
22.5
26.9
29.7
26.6
struction getting back on track.
Delay in project completion owing to
the lockdown and its aftermath is also
likely to impact the turnover of contrac-
tors and,as a result,theirprofitability.Fur-
ther, shortage of staff at government
departments is expected to delay the cer-
tification of work and processing of pay-
ments, adding to the liquidity crunch
faced by contractors and hindering work.
A source in the National Highways
Authority of India (NHAI) tells FE conces-
innovative and scalable ideas that cater
to this segment.
How do you see the growth of the
entertainment/ content startup seg-
ment in India?
Post Jio launch, India has seen
tremendous growth in the number of
internet users in India, an increase in
smartphone penetration and a signifi-
cant dip in data costs,especially in tier II
and III towns. Content is increasingly
being consumed across an array of
devices and platforms,which has shifted
pact, modular and quick to install.
Enthused by its current success and
future potential, Arali Ventures and
CIIE.CO have invested in the warehouse
automation startup. Existing investors
EF & SOSV also participated in the
$500,000 funding round along with
marque angels like Vijay Kedia, Rajesh
Sawhney & others.
IIMAhmedabad’s Centre forInnova-
tion Incubation and Entrepreneurship
(CIIE) is one of India’s leading centres
catalysing the entrepreneurship ecosys-
tem in the country. Arali Ventures is a
seedstageVCfundfocussedoninvesting
in disruptive enterprise tech and deep-
tech startups.
Unbox Robotics’ solution is powered
bySwarm Intelligence that can control a
EXPERTVIEW
sionaires would be given extra time to
complete work if they showed valid rea-
sons for delay on their part. They would
also not be levied any penalty in the wake
of the same. As of December 31, 2019,
around 1,440 highway projects totaling
49,470 km in length were under con-
struction across India.
The challenge posed by Covid-19 was
preceded by months that saw the pace of
work decelerating in comparison to FY19.
DuringtheApril-Februaryperiodof2019-
20, 8,785 km of highways were built at a
rate of 26.2 km/day, compared with
8,974 km built at a rate of 27.19 km/day
in the corresponding period of the preced-
ingfiscal.AsforMarch,notmuchworkwas
done in the last month of the fiscal,
sources say. Significantly, March usually
witnesses the pace of work touching a
high. For instance, after a rate of 27.19
km/day in the first eleven months, the
agencies managed a record 29.7 km/day
for FY19,reflecting the heightened activ-
ity in the last month of the fiscal.
The relative lull in construction activ-
ity in FY20 began after the general elec-
tions were announced last year.The Elec-
tion Commission's announcement saw
the government being prohibited from
laying foundation stones for projects or
making promises for construction of
roads,impacting the momentum inwork.
Subsequently,the sectorwas hit bya huge
liquiditycrisis.The extent of the crisis can
be gauged from the fact that in Novem-
ber, the Ministry of Road Transport and
Highways (MoRTH) had to yield to devel-
opers’ demand for working capital
advance between two payment mile-
stones for both Hybrid Annuity Model
(HAM) and Engineering, Procurement
and Construction (EPC) projects.
the onus away from non-digital plat-
forms while simultaneously heralding
the fragmentation of this audience base.
Faced with these figures, the pressing
need for original,engaging content cus-
tomised for Indian audiences has never
been more apparent.The opportunityin
the Indian entertainment and startup
space is huge.
We have also found local startups to
be extremelyinnovative.Theyaren’t just
replicating successful concepts from
US/China,Indian entrepreneurs aresen-
sitive to local consumerpreferences and
❝
We have on-boarded
some of the leading
logistics and e-commerce
players to deploy our
solution and several
customers from multiple
countries are in the
pipeline.
❝ “In my previous role, I observed that
— PRAMOD GHADGE,
CO-FOUNDER, UNBOX ROBOTICS
WWW.FINANCIALEXPRESS.COM
Airports are likely to operate at less than 20%
capacity in April and at less than 50% till June.
Freight operations will add support to overall traffic
movement but they are also likely to be subdued
—CARE Ratings
DATA MONITOR
Covid-19 expected to mar FY21 for airlines
Even as the macros of the aviation industry are in favour of its growth, it may
not fully recover anytime soon from the effects of Covid-19. Post lockdown,
airlines will be operating at sub-par capacity. Passenger traffic for carriers is
expected to register de-growth of 20-25% in FY21, CARE Ratings has said.
Passenger carried and passenger growth in respect to scheduled domestic airlines
(in million) 2017-18 2018-19 2019-20 Passenger Traffic Growth (%,y-o-y)
14 140 17.9 20
12 130 15
10
120 10
8
6 110 5
3.7
4
100 0
2 2017-18* 2018-19* 2019-20*
0 Note: DGCA traffic information pertains
Apr May June July Aug Sep Oct Nov Dec Jan Feb data by various domestic airlines
Passenger movement (m-o-m growth) Air Traffic at all Indian Airports
since the outbreak of COVID-19 International Domestic Total
Passengers handled (growth %)
0.5
Airlines 16.9
Passenger 15.3 15.7
movement 13.8
(%)
-1.8
-3.2 10.1
Dec 19 Jan 20 Feb 20
6.8
Airports (%) Dec 19 Jan 20 Feb 20
International 1.9 1.7
Passengers 8.3 -1.1 NA
1
Domestic 0.6 -1.8 NA
Passengers 2017-18* 2018-19* 2019-20*
Source: DGCA, CARE Ratings *April-February *April-February
Quick
View
more often than not their offerings are
custom-created and relatable for the
local consumer. One example is edtech
startup Doubtnut, which is solving for
lack of individual attention and doubt
resolution amongst Indian school stu- Core sectors grew by
dents studying in classes 6- 12. More
than 90% of Doubtnut’s users are from 5.5% y-o-y in February,
non-metros—a direct outcome of being
available in 11 regional languages.
highest in 11 months
We believe in investing in companies THE EIGHTCORE sectors recorded
that drive happiness across a variety of growth of 5.5%y-o-yin February,the
categories in a heart-driven world. We highest in 11 months,mainlydue to
have been fortunate to find similar val- healthyexpansion in the output of coal,
ues in Indian entrepreneurs we have refineryproducts and electricity,
invested in, backed with business government data released lastTuesday
strengths including great clarity of has revealed.The eight core sector
vision, immense passion, and commit- industries had expanded by2.2% in
ment to execution. Februarylastyear.In Januarythisyear,the
sectors grewby1.4%.Output of coal,
What would be the average size of the refineryproducts and electricitygrewby
investment you are looking at in new 10.3%,7.4%,and 11%,respectively,
investees? Are you close to finalising during the month underreview.However,
any deals - early-stage,Series Aor B? crude oil,natural gas,and steel recorded
We are focused on early-stage invest- negative growth rate in February.
ments in India. We typically don’t Fertiliserand cement output grewby
share our ticket-size. We meet several 2.9% and 8.6%,respectively.The growth
interesting startups every day, many rate fortheApril-Februaryperiod stood at
conversations are in progress,we will be 1%,as against 4.2% in the same period
happytoshare more on this as andwhen lastyear.The core sectors constitute
we confirm. 40.27% of theweight of items included in
the Index of Industrial Production (IIP).
Doyouhaveaspecificinvestmentfund
for India? What is the corpus size of ADB to invest $100 million
this fund?
in infra sectorvia NIIF
Our fund has a corpus of $50 million
for investments in India and the US. MULTILATERALINSTITUTIONASIAN
Development Bank (ADB) announced last
Monday $100-million funding for the
fleet of robots. These robots can sort Indian infrastructure sector through the
packagesverticallyandcanbeaddedand government-promoted NIIF.The Manila-
removedwith ease,and the solution also
includes sort stands where the bags and
baskets can be stored vertically and sort
based bodywill be investing in the
National Investment and Infrastructure
Fund’s (NIIF’s)“fund of funds”,which will
destinations can be changed as required.
This newgeneration sorting solution
can be installed in less than two weeks,
ensure that the actual money invested is a
few times more than the committed sum.
The investment announcement comes at
requires less than 50% space of the cur-
rently available sortation systems, and
lower capex, while providing at least 2x
a critical time for India,as the already
sagging economic growth is feared to
have taken a heavy hit due to Covid-19.
productivity than the market average, “ADB’s commitment to NIIFfund of
ensuring significant ROI for the cus- funds during these extraordinary and
tomer in a short duration. challenging times is highly meaningful,”
Before starting Unbox Robotics, NIIF’s managing director and chief
GhadgeworkedatFlipkart,whereheintro- executive Sujoy Bose said.
ducedIndia’sfirstrobot-basedparcelsort-
ing solution.Memon has experience inAI CLW betters own record on
and robotics with core interest in multi-
production of locomotives
robot systems and Swarm Intelligence.
the existing warehouse automation
solutions were inefficient in terms of
space utilisation, installation time, and
capital involved. We started Unbox
Robotics to eliminate these in-efficien-
THE CHITTARANJAN LOCOMOTIVE
Works (CLW) has broken its own record
for production of locomotives,manu-
facturing 431 locomotives in FY2019-
20.In a tweet last week,the railway
ministry said the feat had been achieved
cies,”said Ghadge.“We have on-boarded despite Covid-19 restrictions coming
some of the leading logistics and e-com- into force on March 21.The factory had
merce players to deployoursolution and earlier set a world record by manu-
several customers from multiple coun- facturing 402 locomotives in FY2018-
tries are in the pipeline.” 19.The locomotive factory is located in
West Bengal’s Asansol district.
 5 FINANCIAL EXPRESS
Education
MONDAY, APRIL 6, 2020
Coursera sees massive uptake in courses
When comparing the past
30 days with preceding 30,
enrolments for epidemic
courses increased by 360%
VIKRAM CHAUDHARY
ON MARCH 12,Coursera—whichpartners
with universities to offercourses online—
announced free access to its Coursera for
Campus platform,forall colleges and uni-
versities around the globe. Since then, it
haswitnessedahugespikeinuptakeofthe
platform and several of its courses.
In March, Coursera added 363,000
learners in India.Between March 12 and
March 31,more than 983 inquiries have
come from colleges and universities in
the country, and over 700 universities
and colleges have signed up on the plat-
form, with 270 programmes launched.
Globally,in the same time period,Cours-
era got more than 17,000 inquiries from
colleges and universities in 120 coun-
tries, and over 3,000 universities and
colleges signed up, with 2,100 pro-
grammes launched.
Part ofthe reason,of course,isthe lock-
down due to the Covid-19 outbreak and
the resultant‘learning at home’.
“India has over 37 million students
enrolled in highereducation.An interrup-
tion in the delivery of education could
● WORK FROM HOME
How to keep
your (new)
remote worker
productive?
Adopt the latest software,
set deadlines, hold regular
team meets, keep a remote
IT help team on standby
AVIJIT BHATTACHARYA
ALTHOUGH ‘WORK FROM home’is not a
novel concept globally, in India remote
working—also called location-indepen-
dent working—is rare, especially at those
organisations where using desktop is still
the norm.While managing efficiency and
productivity in such a situation can be a
task, a few tips can help with a smooth
transitioning to a virtual workspace.
Use the latest systems: Adopt the lat-
est, most accessible software to facilitate
smooth functioning of the virtual office.
Tools such as Microsoft Office, Skype,
Microsoft Teams and Google Sheets are
useful programs
Trust your teams, for conducting
have faith that meetings, daily
employees are
getting work
done even if their
discussions.
and
Set deadlines
hold regular
team meetings:
leaders can’t see Maintain a system
them working.
of holding a team
Treat work from meeting or a one-
home as normal on-one interac-
working day tion with each
team member and
their task list
either byemail,call orvideoconferencing.
A remote IT help team on standby:
Whenemployeesareinanoffice,anytech-
nical error in their systems can be trou-
bleshot with one dial to IT help desk. But
inaremoteworkingset-up,networkissues
are bound to happen, which can hamper
employee productivity.Make sure there is
a dedicated IT team on call that can solve
network issues remotelyorguide employ-
ees in case of system-related issues.
Remote work is normal workday:
Trust your teams,have faith that employ-
ees are getting work done even if their
leaders cannot see them working. Treat
work from home as a normalworking day;
instructions are delivered onvideoconfer-
encing or a call rather than face-to-face.
Help create a comfortable culture in the
team and ease panic and stress,if any.
The author is CHRO,Tata Capital
cause long-term disruption to economic
growth,” says Raghav Gupta, managing
director, India and APAC, Coursera.“Our
intent was to help students and universi-
HARJIV SINGH
AS ON MARCH 23, UNESCO estimated
over 320 million students in India were
affected byschool closures following the
Covid-19 outbreak. There can be reper-
cussions on college enrolment and job
prospects. Rarely have we faced a pan-
demic-drivendisruptionsuch asthis.But
every crisis presents an opportunity.
Covid-19 has inspired a rethink of
existing education models. Self-isolated
at home, students have taken to online
tools for studying, and Indian edtech
Science & tech
ISHAAN GERA
WHEN RUSSIAN PREMIER Vladimir
Putin earlier this year released a mass
surveillance system, many across the
world were worried where this would
lead. China had already been doing so,
and the results of this were not so com-
forting. Since, the release of software
China, it was claimed, had been using
masssurveillancetotrackdissidents.The
system may not be as advanced as it is
touted to be, with technology progress-
ing at afastpace,thereis little doubt that
itwould notreach that stage aswell.And,
both China and Russia have got an
opportunity in the form of coronavirus
spread and lockdowns. Both countries
have been using theirsocial surveillance
systems to track people. CNN reports
that the Russian state, using 170,000
cameras,even has caught and fined 200
people forviolations.
But those are not the only two exam-
ples,last monthThe Economist reported
thatTaiwanhadbeenusingcontacttrac-
ing tools, and people were happy to give
up theirprivacytostop the spread.South
Korea is reported to have developed apps
which require registration of citizens
and tracking of theirlocation.Singapore
launched a similar tech late last month.
While the US and the UK both are
promising the same kind of technology
to track users, India, on Thursday,
unveiled an app of its own.Aarogya Setu
is expected to follow a similar model. It
shall ask users to voluntarily register on
theappandkeeptheirlocationandBlue-
tooth on, and if they happen to
encounter an infected person, the app
shall send a message. What will happen
after that is not known, but some states
have developed apps for what comes
● TECHSPLAINED@FE
The definition problem
ISHAAN GERA
TV AUDIENCE MEASUREMENT body,
BARC, on Thursday said that television
viewershiphadincreased11%to622mil-
lion viewers between March 21-27 when
compared to January 11-31, 2020. The
onlinegamingsegment,intermsofusers,
● COVID-19 & E-LEARNING
MARCH SURGE
■ In March 2020 alone, Coursera
added 363,000 learners in India
■ Over 700 Indian universities,
colleges signed up (March 12-31)
■ Compared to February, overall
registration is up 173% in March
■ Compared to February, overall
enrolment is up 145% in March
ties in the time of crisis.”
Popular trends on Coursera
“We have seen a significant jump in
Make edtech more inclusive
Edtech start-ups report an upsurge in enrolment rates
start-ups have reported an upsurge in
enrolment rates. The government can
work with private edtech players to
broaden the reach of quality education.
Online learning in such times
The adoption of digital platforms in
the wake of Covid-19 may well be offer-
● EAVESDROPPER
Of trackers & men
Coronavirus will change how we view privacy
Polonius behind the curtain by Jehan Georges Vibert, 1868
registered an increase of 11% during this
period.The time spent increased 26% to
over three hours (191 minutes) from 151
minutes in the pre-Covid period.While
Indians have been consuming more data,
thisisalsoputtingstressondataproviders.
Infact,EuroperequestedNetflixandAma-
zon to switch to standard definition from
EXPERTVIEW
registrations in India.Compared to Febru-
ary, overall registration is up by 173% in
March,”saysGupta.“Enrolments,too,have
seen a very strong increase. Compared to
February, the overall enrolment is up
145% in March.”
Public health content
Month-on-month (February-March),
CourseraIndiahasseenawhopping875%
increase in enrolments in public health
content. For example, since going live on
February 18, Imperial College London’s
course ‘Science Matters: Let’s Talk About
Covid-19’ has become the second most
popular course launched on Coursera
India in 2020 (it is alreadythe most popu-
lar course globally on Coursera, among
those launched in 2020).
ing a glimpse into the future of educa-
tion. In the event of an extended lock-
down, online tools may no longer be a
privilege but a necessity.
Every village has mobile access. But
the infrastructure has a long way to go
before it can sustain digital platforms at
scale. When the Covid-19 broke out in
high definition content, India also has
madetheserequests.Whileplatformshave
complied,fornow,start-upshaveaninge-
nious solution to the problem,where the
useofartificialintelligencecanhelpcom-
paniesachievethis.MyelinFoundry,adeep
techcompany,mayhaveananswer.Gopic-
hand Katragadda, founder and CEO,
Myelin Foundryexplains how Myelin can
make SD content look like HD and save
40% storage space.
HowcanAIhelpscaleupstandarddefin-
itiontohighdefinition?
This is done using a technique called
artificial intelligence on edge.This is the
last stop before stream hits the screen.
Katragadda explains that artificial intelli-
gence,in this case,converts the incoming
video in to an upscaled video. So, an SD
video (720p) can be converted into high
definition output of 1080p.AI adds sev-
eral layers of computation to the video to
do this.It works on every pixel, changing
six pixels on x-axis and six-pixels on y.
Based on the context,AI can also change
thecolourofthepixelandthevalueof the
video frame.
Doesthisapplytoonlyvideoorlivecon-
tentaswell?
As the technology incorporates AI on
edge and canwork at high speeds (several
gflops),it can be used for all purposes like
WWW.FINANCIALEXPRESS.COM
While numerous schools in India have tied up with
edtech platforms to offer online learning to students,
our survey findings indicate a major chunk of them
have not made such associations yet. We expect
more schools and teachers to follow this path.
—Michal Borkowski, Co-founder & CEO, Brainly
In addition, globally, there have been
more than 1 million enrolments in Yale
University’s ‘The Science of Well-Being’
course, making it the third most popular
course of all-time on Coursera.“In com-
parison, there were 270,000 enrolments
inallof2019,”addsGupta.“InIndia,enrol-
ment in this course increased by 1,975%
in March compared to February.”
Globally,when comparing the past 30
dayswiththepreceding30days,enrolments
for epidemic/pandemic courses increased
by360%.Thesecoursesinclude‘Epidemics:
TheDynamicsofInfectiousDiseases’fromthe
Pennsylvania State University;‘Epidemics,
Pandemics,andOutbreaks’fromtheUniver-
sityofPittsburgh;‘Epidemics’fromtheUni-
versity of Hong Kong; and ‘Outbreaks and
Epidemics’from Johns HopkinsUniversity.
China, the government reached out to
techcompaniesandtelecom providers to
ensure education continued unabated
online.Likewise,Indiacanworkwithtele-
com players to enhance infrastructure.
Also,governmentsandpolicythinktanks
have access toreamsof datathatcanhelp
edtech firms tailor their content to local
audiences.As efforts to beat Covid-19 are
underway,we must recognise the oppor-
tunityat hand to create a positive impact
that could long outlast the crisis.
The author is CEO & founder,
BrainGain Global
later. Kerala was the first one to allow
geo-tracing of infected people to ensure
that they do not come out of self-isola-
tion.Karnataka,which is also the IT hub
of the country, has followed a different
approach.It has been asking peoplewho
are home quarantined to upload selfies
every hour.
Users have been happy and willing to
part with privacy, but privacy advocates
have been mulling over scenarios once
the lockdowns are over.A lot many peo-
ple may keep using apps and sharing
data with the government.Will govern-
ments be ready to cede control and give
users back theirprivacy?While that may
not be so easyforauthoritarian regimes,
even for democracies, it would be chal-
lenging to turn the tide.
Technology may be answer. As gov-
ernments are upgrading their systems
for more data, countries can also look
forward to turning to technologies that
may establish some trust. Blockchain is
a good example.Anydata repository,cre-
atedbythe government,canusethis sys-
tem.As blockchain requires the consent
of all users, citizens can revoke or give
permission based on requests. For some
services, users can be notified of the
nature of access. Like,when a particular
data request was made and by which
authority.
But a lot more emphasis needs to be
given to unbiased AI tools. So that even
when an unbiased AI screens through
data,what the government receives will
be in an anonymised form. This declut-
tering is undoubtedly tricky, but not
impossible.
Some people have been happy to part
with privacy; when this ends, govern-
mentsshouldbegladtopartwithcontrols.
ishaan.gera@expressindia.com
videoconferencing, gaming, user-gener-
ated content, virtual reality and aug-
mented reality.For 30fps videos,which is
thestandardforstandardvideoandsports,
thereisnolaginstreamingduetothehigh
speedofAI processing.
Whatisfps,andwhydoesitmatter?
Therateatwhichcontentisstreamedis
called frames per second.The higher the
frames per second, the more fluidic the
contentisgoingtobe.ThestandardTVrate
is30framespersecond.Phonesthesedays
cangoupto120fps,whichisbeneficialin
thecaseofgaming,asitgivesabetterview-
ing experience. Myelin says they will be
able to do 120fps onlyby2021.
What is the difference in video size and
quality?
Given that Myelin's software can scale
up a 180p video into a 1080p video, of
course,qualityisnotthesameasa720pto
1080pconversion,itsaves40%space.The
main changes are to the quality though.
The minimum quality increase is 40%.
The buffer ratio, in this case, is zero. So, a
500 MB video can be compressed to 100
MB, saving a lot of space for the content
providers.
Techsplained @FE features weekly on
Mondays.Ifyou wish to send in queries
that you want explained,mail us at
ishaan.gera@expressindia.com
Courses that have
started trending
PRATEEK BHARGAVA
ONLINE COURSES HAVE emerged as a
blessing in disguise during the Covid-19
outbreak. Many courses designed by Ivy
League universities are available free of
cost on various e-learning platforms.
Science Matters: Let’s Talk About
Covid-19: If you are intrigued by pan-
demic theories,thismoduleisforyou.This
course is offered by Imperial College Lon-
don. The curriculum is ideal for medical
students, researchers who aspire to build
a careerwithin the area of epidemiology.
TheScienceofWell-Being:This mod-
ule fromYale Universitysheds light on the
science of combating stress and anxiety
when the going gets tough,which is now.
Gamification: If you yearn to under-
stand techniques of building a nuanced
game design,then this course isyouroasis
of calm in these turbulent times. It’s by
University of Pennsylvania and can help
you delve into concepts of game-creation.
Data Science: Harvard University has
this dynamic course with integrated ele-
ments that can hone data science skills.If
you really like this intricate yet intriguing
concept,now is the time to learn.
The author is founder,Mindler,
an edtech platform
● NEWS BRIEF
Pearson starts free
maths learning app
To aid students with self-studying,
Pearson has launched Quikik, an
AI-based maths learning app. It
also announced support for IIT-JEE
students and institutes—with free
access to MyInsights Online Mock
Test Series. The JEE, scheduled
April 5-11, has been postponed.
Coursera for
Campus free till July
Coursera recently announced free
access to its Coursera for Campus
platform for all universities around
the globe. Universities get access
to 3,800 courses from the world's
best institutes free till July 31, after
which extensions depending on
prevailing risk will be offered.
Notebook app free
for all schools, kids
The after-school digital learning
portal Notebook has started free
app access for all schools and
students across India. It allows
schools to get access to concise
audio-visual teaching aids for
classrooms, and students to get
access to the same content on
devices. Achin Bhattacharyya,
CEO & founder, Notebook, said,
“We’ve made our entire content
catering to CBSE, ICSE, UP state
board, West Bengal state board
fully free till May 31, 2020, and will
extend the same if required.”
Bright Tutee starts
free e-learning app
Edtech platform Bright Tutee has
started free dissemination of its
online digital learning content for
students of classes 9-10th, till July
31, 2020. The Board of Secondary
Education, Rajasthan, lauded the
step that ensures the lockdown
doesn’t have a detrimental impact
on students in the state.
LPU $1-million fund
to combat Covid-19
Lovely Professional University has
set up a $1-million fund to combat
the outbreak of Covid-19. It can
be accessed by a multidisciplinary
task force set up under V-C of LPU.
It comprises researchers, faculty
members, student entrepreneurs
who will try to find ways to reduce
the spread of the pandemic. LPU
will continue to add to the fund.
JD Institute’s mental
health campaign
JD Institute of Fashion Technology
starts mental health campaign for
students via social media to help
them deal with the lockdown. It
includes online interactions with
experts who will talk to students
about embracing uncertainty and
help them focus on well-being.
FE BUREAU
 6 FINANCIAL EXPRESS WWW.FINANCIALEXPRESS.COM

Opinion
CRIME AND PUNISHMENT

❝
Chief minister of Uttar Pradesh Yogi Adityanath
They will not follow the law ... They are the enemies of
humanity, what they have done with women
healthcare providers is a heinous crime. We are
❝
invoking the National Security Act against them
MONDAY, APRIL 6, 2020

Tackling corona vital, must INDIA DOESN’T HAVE THE FISCAL SPACE TO DO WHAT DEVELOPED ECONOMIES HAVE DONE.
● CORONA RELIEF

deal with privacy issues too RELYING TOO MUCH ON FISCAL & MONETARY MEASURES WILLAFFECT MACROECONOMIC STABILITY

Managing Covid 19:

Tracking corona-afflicted or those quarantined is critical, but
need rules to ensure this is a one-time thing

A A task well begun

TATIMEwhen so manypeople are breaking theirquarantine,andwhen
the spread of the corona virus is suddenly picking up very fast—it took
31 days for the number of infected to rise to 1,397 and then just four
days forthis to almost double to 2,611—the government has donewell
to emulate what some other countries are doing in terms of corona-tracking.

T
Aarogya Setu, the app released by the government on Thursday, uses bluetooth
information and GPS data to let users know whether they have encountered an HE POLICY ROLL-OUT declined by about 35%.We need to be
infected person. Indian state governments, too, have come up with some pretty over the past couple of vigilant.While non-performing assets
neat solutions. Karnataka has launched an app for those isolated at home to weekshas,forthemostpart, (NPAs) will spike in virtually all
update their location; the state,on Monday,made it mandatory for all those iso-
lated at homes to download an app called Quarantine Watch and upload selfies
been sensible. There has
been some commentary
URJIT R economies in the coming months,ini-
tial conditions could come into play;
each hour with a GPS location. that the fiscal-financial programme PATEL India’s NPAratio isover9%,among the
Such technology, needless to say,will play a big role in bolstering confidence as isn’tboldenough.Perhapssoundercer- Former Governor
highest for important economies, and
Indiamovestowardsunwindingthecurrentlockdownsituation.So,asmorepeople tain assumptions, but we have to be Reserve Bank of India it was projected to rise anyway. Ques-
start leaving their homes to go to work or school or shopping,orwhatever,Aarogya mindful that this is not only a con- tions about the sector in India persist
Setu will help them know if the area they are in—or the person whose vicinity they strainedexerciseinpolicymakingatthe despite comfortable capital adequacy
are in—is Covid-positive.Indeed,an app like this and a dramatic increase in testing, current juncture,we also have to brace reserve currencies have much more agement should not be the driver to ratios formost banks (and certainlythe
will be critical in a post-lockdown India; even the staggering of the reopening—the for likely multiple impacts over an elbow room. EMEs, like India, obvi- spook investors beyond the normative large ones).Recent developments per-
PMdiscussedthiswithstateCMsonThursday—canuseinformationofthissortfor uncertaintimelinethatcouldlastayear. ously don’t have this luxury. For India portfolio rebalancing taking place taining to a private bank notwith-
decision-making.Interestingly,Google has just published a report on what people The welfare support—encompass- to replicate what developed countries globally in recent weeks. standing, the forbearances pre-Covid,
did in the last fewweeks invarious countries—it shows a 35% reduction in grocery ing both food and money—bythe gov- have done is not possible as willy-nilly Lastweek,ourbreathlesspursuitfor togetherwithwidelyreported delays in
ernment to help the most vulnerable we have to confront the reality of lim- being part of global bond indices gath- resolution and the ad hoc dilutions in
shopping and a 53% fall in the numbers going to the office in India—which is also
forthe next fewmonths,as also to par- ited financial space. ered pace. Over the past year, we have regulations, have not helped; neither
helpful in knowing whether the lockdown is working.
tially defray the cost of retaining India’s correctly measured national incessantly relaxed prudential norms has poor disclosure—late last year, ten
There is, however, a downside of such data in that it can lead to an all-seeing, workers in smaller enterprises, has fiscal deficit is perpetually high, and it related to external flows banks disclosed that, for
all-knowing state. Once there is proof the technology works, and it clearly does, it combined compassion and prudence. is about to get larger even without an management, opening the previous financial
can be used for anything; to keep a track of where dissidents are, for instance. And, further spending has not been increase in outlays. First, revenues will up further the possibili- year, their NPAs were
Indeed,while it was comforting to know India’s intelligence agencies were savvy ruled out.Having said this,we do need declinesharply;andsecondly,stategov- ties of surges and sudden We do need to `26,500 crore higher
enough to scan the crowd at the prime minister’s Independence Dayspeech using to expend more resources on prevent- ernments, the first responders of the stopsof“hot”foreigncap- expend more than previouslyreported.
facial recognition software—and also during the Delhi riots—this raises fears of ing spread because massive preva- healthemergency,willbehardpressed. ital with well-known resources on All this contributed to an
China-style tabs on the daily life of citizens. lence-testing now could—but not This iswhy,despite the steep cut in pol- attendant consequences. massive testing now increase in the sector’s
While there are times when the state needs such data—to help it figure out guaranteed to—help avoid another icyrates,theG-secyieldhasbeensticky, Itisanexpedientpolicyin risk premium.
wheretoconcentrate its relief efforts,forinstance—therehavetobe enoughchecks national lockdown or reduce the need andpossiblyevenmovingup.Thestress the hope that itwill lower because this could Safety-first suggests
to ensure this is not abused. Ideally, a data privacy law should take care of some- formultiple localised lockdowns later. is already apparent.A payments mora- borrowing costs for the help avoid another that instead of distribut-
thing like this,but that law gives a blanket exemption to all government agencies. So,the optimal policy timing needs to torium on power suppliers by govern- central government; this national lockdown ing dividends,banks may
take this externality into account ment-owned electricity distributors, if mayonlyhelpintheshort
And,while it is tempting to believe the government will put a mechanism in place or reduce the need want to retain almost all
to ensure there is no abuse,as the Justice Srikrishna panel pointed out,the checks without delay.For the size of our pop- media reports are correct,is a sub-sov- run, and in the current profits to enhance the
are reallynotworking in the mannertheywere expected to.While phone tapswere ulation,the quantum of tests we have ereign default.Some of thosewho have environment,eventhatis for multiple capital buffer and signal
expected to be authorised after great care—and even more care be taken to ensure conducted so far seems to be too low. argued for up front bigger packages, not apparent. Going localised lockdowns the resolve to remain
the power to tap is not abused—and an elaborate procedure has been set in place, The government should bear the stimulus, asset buyback, impromptu down this policy route is later. The govt strong in the face of the
entire cost for testing, given, without liquidity windows, automatic moneti- puzzling at a fundamen- unfolding loss in eco-
Srikrishna found the committee chargedwith executing the tapping often cleared
the requisite data, we will be flying sationetc.have,interalia,usedstability tal level. While we erect
should bear the nomic activity. Perhaps,
15,000phonetaprequestsinonemeeting.Oneobvioussafeguardis to ensuredata entire cost for
blind when making the difficult calls as the rationale. But, if the fiscal and trade barriers to imports inDecember,thedecision
isonlyprocessedwithanonymisedresults.But,whereindividualdataisbeingused,
in any form, a full-time panel lead by a retired SC judge, should be examining
in the weeks ahead. The benefits are monetary responses are overdone, the through higher custom testing can be revisited based on
obvious, viz., credible data will infuse likelihood of non-trivial consequences duties,weareopeningthe their results till then.
requests for surveillance,how theywere used,were they even needed etc. confidence in both the health and eco- for macroeconomic stability increases. capital account for“bond At some point, inter-
nomic spheres, and lack of credibility It is a fine line between aggressively tourists” further (even as national investors will
will breed uncertainty, slowing down proactive and being perceived as reck- hurdles are raised on outward remit- begin to sharply distinguish between

New headache for banks economic recovery.

Hardlyanyemerging market econ-
omy (EME), with the possible excep-
less. As it is, there is a flight to safety,
essentially investment in US govern-
ment bonds, with home country bias
tances for households). How does one
square this circle since it is well-
founded that high import barriers ulti-
countries along the principal measure
of how successfully the health chal-
lenge is being met, which will deter-
Banks should have been allowed to decide moratorium tion of China, can match what devel- alsocomingintoplay,whenglobalrisks mately undermine national competi- mine how quickly and durably indi-
oped countries like the US, UK and flare up.The exorbitant privilege of the tiveness, and it is mostly export vidual economies will get back on

W
HILETHERE IS no denying that the next several months are going Germany have announced. These US dollar not only endures, it is rein- earnings thatwill have to service exter- their feet. This could induce another
tobenightmarishforbusinessesgiventheyaregoingtofacesevere countries have basicallyset out,at least forced during crisis. nal liabilities? The strategy, leave aside financial “wave” that we need to pre-
cash-flow pressures following the 21-day lock-down,the Reserve in the short run,to offset,through gen- Foreign portfolio investment in the vision, behind this bi-polar eco- pare for by maintaining relative
Bank of India (RBI),nonetheless,should not have allowed borrow- erous direct government entitlements Indian equityand bonds is about $ 300 nomic policy is not apparent. macroeconomic stability.The tempo-
to large sections of the population and billion. $ 15 billion exited last month, It is also noticeable that investor ral uncertainty around the persis-
ers a moratorium on loan repayments.
extraordinary central bank activism, and that is not a surprise.India’s equity confidence has affected our banking tence of the virus is the most impor-
The better way to address the problem was to have left it to lenders to decide
the adverse demand shock following performance during March, in dollar sector more than the broader equity tant reason for keeping some policy
which customers would be eligible for the repayments holiday. As analysts have the primary negative supply shock of terms,is in the bottom half in a sample market; the latter declined by 23% in gun powder dry, even as we meet the
rightlypointedout,abreakofthiskindtendstobemisused,andonecannowexpect the pandemic.Countries that can issue of EMEs. Our macroeconomic man- dollar terms last month,but financials challenge on all fronts.
repayments to be delayed by much longer than just three months.In fact,it could
take as long as a year for some of them—the smaller companies—to get back on
their feet. Even though lenders are making it very clear that the benefit will come
at a cost, most borrowers are expected to use the breather and worry about the
charges later.Had it been left to the bankers,they could have used their discretion
to pick out the customers genuinelyin need of relief; theycould have allowed those
LETTERS TO
No shelter from the virus
borrowers who have provided enough collateral to use the moratorium window
while continuing to recover the money from unsecured borrowers. A blanket
breather can be justified for microfinance customers,and bankers need not worry
THE EDITOR
too much about home loans either,since the propertyis mortgaged to them.How-
ever, allowing those who have borrowed against credit cards to delay repayments Lighting the lamp
was notwarranted.While banks have been allowed to reassess theworking capital If govts like India’s want to manage
limits,the fact is that,veryoften,the exposures are governed bya consortium,and In his third address to the nation
Covid-19 and its economic fallout,
therefore,require a sign-off from a majority of the lenders.
Witheventhosewhocanrepaytheirloansaskingforamoratorium,banks’books they’ll need to act quickly to ADAM amid Covid-19 pandemic, prime
minister had appealed to his
will now be upset for three months,or probably much longer.That,then,will lead
to uncertainty,making it difficult to gauge the true quality of the balance sheet—
secure the health and safety of their MINTER countrymen to switch off the lights
in their homes for nine minutes at 9
because the asset classification does not change.Investors,understandably,will be
informal workforces Bloomberg
pm on April 5 to drive home the
significance of collective fight to
reluctant to invest in a bank whose balance sheet is not up to date, so banks will remove the darkness, engulfing the
find it hard to raise capital at a good valuation.According to analysts at Nomura, LOCKING DOWN INDIA for 21 days waste pickers. Colombia, workers have organised nation in the form of coronovirus. At
assumingalltheinstallmentsareplacedundermoratorium,itwillamountto4-5% may slow the spread of the new coron- If anything, the lifestyle risks are large-scale protests seeking aid follow- a time when the nation is grappling
of loans forthe banks,and around 25-50% of the networth.Itwould have been far avirus,but it is quickening the miseryof even more harrowing. Infectious dis- ing the imposition of a quarantine. with a host of challenges ranging
better for banks to take the hits as they come—and set aside the required capital— the hundreds of millions of people who eases can spread easily in the crowded Things will likely get worse. If left from emerging economic distress to
so that they are clear about how much growth capital they have to be able to lend workinthecountry’sinformaleconomy. marketplaces and housing develop- unaddressed, the plight of informal the woes of poor migrants and other
to new customers. The uncertainty about how much they will actually be able to By some accounts, these workers mentswhere suchworkers spend their workers will pose long-term economic vulnerable sections and looking
recoverafterthree months could keep them from lending to good customers.And, make up nearly 90% of India’s labour days and nights. Mitigation strategies and health risks. In West Africa, the forward to concrete measures from
that is not good for business. force,from self-employed trash collec- such as social distancing are luxuries aftershocks of Ebola are still being felt, the union government to alleviate
tors to stay-at-home garment embroi- that many can’t afford. Even hand with estimates of the overall cost to the the agonies of those living on the
derers.Job security is minimal and the washing can be a challenge in crowded region ranging as high as $53 billion. fringes, prime minister appeared to

ClimateCONTAGION safety net is all but non-existent.With

cities shut down, these workers are
migrating home tovillages bythe hun-
city markets and settlements, where
running water is scarce
and communal.
Additional impacts include rising fis-
cal deficits, reduced agri-
cultural production,
be content with an exhortation to his
countrymen to light lamps. It is
disappointing for it is nothing other
As the US is already signalling, once corona-crisis passes, dredsofthousands,potentiallyspread- During the cata-
Things will likely
increasedunemployment, than an act of symbolism. It is time
ing the virus along the way. strophic Ebola epidemic anddeclinesininvestment we instill confidence in poor and
economies could undo the meagre progress on climate action India’s situation isn’t unique.From in West Africa, which get worse. If left and tourism. provide them fire to light chullas and
unaddressed, the

C
Southeast Asia to South America, the killed more than 11,000 The best way to reduce cook meals, and not an appeal to
ORONA-RESPONSES LIKE that of the US’s Trump regime will surely world’s two billion informal workers people, the region’s plight of informal these harmful effects is to light lamps.
birth another crisis,that of a derailing of the meagre progress made on are suffering some of the earliest and informal economies get help to informal work- — M Jeyaram, Sholavandan
most devastating effects of the coro- were devastated by workers will pose ers now.Governments and
climate action. Climate-denier Trump, who walked the US out of the
navirus and social distancing. Yet, shortened working long-term aid organisations should
Paris Agreement and relaxed national restrictions on methane emis-
sions,hasnowrolledbackObama-erathresholdsonaveragefuelefficiencyexpected public aid packages have so far been hours, quarantines, economic and organise cash grants that On healthcare wokers
of automakers, all in the name of reviving the economy once the country’s raging largely directed at formal businesses movement-control health risks can be disbursed through Shockingly, healthcare workers
and employees. If governments like orders and restrictions theubiquitoustradeassoci- have become the target of attacks
corona crisis—resulting largely from the inept initial handling of the outbreak by
India’s want to manage Covid-19 and on cross-bordertrade.In ations and labour unions in some parts of the country. While
the government—passes. As per a 2012 law, car and truck manufacturers were
its economic fallout,they’ll need to act Liberia, where perhaps thatsupporttheseworkers. healthcare workers, who were
requiredtoboosttheirfueleconomy,by2025,to46.7milespergallonfromanaver- quicklyto secure the health and safety 90% of theworkforce is informal,two- Forexample,theAllianceofIndianWaste collecting details of Covid-19 cases,
age of 40.4 miles per gallon.This would have required serious investment in tech- of their informal workforces. thirds of households were unable to Pickers will likely be better equipped to were thrashed and chased by a
nologyandresearch.But,now,automakersarerequiredtoboosttheirfueleconomy Roughly 60% of the world’s work- purchase rice to meet theirdailyneeds distributeaidtoitsmembersthanagov- mob in Indore, an ASHA worker who
by only 1.5% annually for the model years 2021-26,as opposed to the almost 5% ing population is employed in infor- during the height of the epidemic. In ernment agency would be. In addition, had gone for field surveillance
annual improvement plan Trump’s predecessor had negotiated, or even the 2.4% mal enterprises.In emerging markets, hard-hit Sierra Leone, home-based governmentsshouldmakeitapriorityto following a report of Covid-19 case
annual improvement that major automakers themselves had committed to. such work often constitutes the bulk informal businesses reported a 40% distribute soap,protective supplies and was allegedly assaulted by a group
The administration claimed that lowered fuel efficiency standards would of economic output, including pro- decline in income,while 170,000 non- disease-preventioninformationtothese of people in Bengaluru. It is also
reduce the price of newvehicles by$1,000 on average,and enable regulatorycosts duction,distribution and sales.It plays farm self-employedwageworkers lost workerswhere possible. appalling that many healthcare
savings to automakers to the tune of almost $100 billion,as perForbes.Ironically, a crucial role in the daily function of their jobs. The world’s most vulnerable work- workers lack proper safety gear
this anti-climate decision comes at a timewhen theworld,as an unintended con- cities and farming communities, and There are already indications that ers are easy to overlook in the best of while doing their duty, putting their
sequence of corona-induced movement restrictions,haswitnessed a sharp uptick offers a lifeline to marginalised work- Covid-19 will have a similar effect. In times. In the midst of a global pan- lives on the line. The government
in airquality.While airpollution is estimated to cause over4 million deaths annu- ers.But,it also entails significant risks. Indonesia, informal ride-hailing dri- demic, they need to be seen and heard must spare no effort to ensure their
ally,some conservative estimates,CNBC reports,claim that reduction in pollution Swings in market prices can be ruinous vers are seeing steep drops in income. more than ever. safety and security.
has prevented 50,000 deaths in the last two months.But,expect these gains to be to small farmers and food vendors,for In Uganda, informal workers have This column does not necessarily — Ravi Chander, Bengaluru
lost with the world—with multilateralism and globalisation taking a hit—going instance, while pathogens can often clashed with police seeking to enforce reflect the opinion of the editorial
back to its old fossil-fuel addiction. find hosts in a city’s wide-ranging Covid-19 mitigation measures. In board or Bloomberg LP and its owners ●Write to us at feletters@expressindia.com

Regd. No. CMM/BNG/DECL/NPP 28/3/2001 R.N.I. Reg. No. 50532/1996 Printed and published by HS Gadhadar on behalf of The Indian Express Private Limited. Published at 502, Devatha Plaza, 5th Floor, 131, Residency Road, Bangalore - 560025. Phone: (080)22231923/24 Fax: 22231925. Printed at MNS Printers Pvt. Ltd. 345/4, Bhatarahalli, Old Madras Road, Bangalore - 560 049.
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WWW.FINANCIALEXPRESS.COM
FINANCIAL EXPRESS
VIKRAM S
MEHTA
The author is chairman & senior fellow, Brookings India
● OVER THE BARREL
Energy
lessons from
Covid-19
Whatever be the shape of the post-Covid
international petroleum market, India will
be dependent on it to secure its domestic
energy requirement. The question should,
therefore, be asked: What should the
decision-makers do today to respond to
such a contingent and uncertain future?
“Things fall apart; the centre cannot hold;
mere anarchy is loosed upon the world.”
—WB Yeats
I
N THE MIDST of a global pandemic
of epic dimensions, one is hesitant
towrite about the narrowsubject of
petroleum. It seems so trivial. But
then, if there is one certainty, it is
that human ingenuity and technology
will push us, sooner (hopefully) than
later,into a post-Covidworld.And at that
time,India will,once again,confront the
challenge of oil and gas supply security.
Weshouldask,therefore:Whatwillbethe
landscape of the petroleum sector,post-
Covid? And what should India do now to
prepare for an uncertain and contingent
energy future?
The Centre has indeed ‘fallen apart’
A To curb further
S COVID 19 SPREADS more
broadly into the community,
itistime forIndia’sstrategyto
move from one of individual
testing,containment,andiso-
lation,to a community approach.
The lockdown is likely to have both
bought us time by pushing-out the epi-
demic peak and lowering the demand on
our health system by pushing-down the
peak. However, there is evidence of Covid
19 in at least 30% of the districts in India,
anditispossiblethatcasesexistinremain-
ing districts as well, but have not been
detected yet because testing has not yet
reachedtheselocations.Ifweweretofocus
our containment efforts only on places
where current testing shows a significant
numberof cases,wewould miss a number
of communities where transmission has
started, but which we are unaware of.
Howwillweidentifymostcommunities
atrisk?Evenwithrecentincreasesintesting,
Indiaistestingatamongthelowestratesin
the world. Whatever the arguments may
have been in the past for low testing rates,
looking forward, our constraints are likely
related to capacity.There are only a fixed
number of machines that can do the real-
time,reverse-transcriptase PCRthat allows
ustoidentifyRNAfromaperson’sbloodand
matchittothegeneticsignatureofthecoro-
navirus.And,thewholeworldisdemanding
the same testing kits that Indianeeds.
So, how might we use our limited test-
ing capability more effectively? One
method we propose is to combine RNA
in the international petroleum market.
The concept of MAD (Mutual Assured
Destruction) deterred the nuclear pow-
ers during the Cold War. It has had no
such effect on the oil powers. For, at a
time when Covid had pushed the global
economy into recession, the proxies of
the Saudi Crown Prince, Mohammed
Bin Salman (MBS) and the Russian Pres-
ident,Vladimir Putin,took a set of deci-
sions last month that knocked the eco-
nomic props from under the oil market.
The Saudis decided to flood the market
to hold onto market share,and the Rus-
sians accepted the consequent decline
in prices to push the US Shale industry
to the wall. Both may achieve their
objectives, but they have sounded the
death knell of the OPEC (Organisation
of the Petroleum Exporting Countries),
Covid 19 spread,
move to pooled tests
The goal isn’t to
identify individual
cases, it is to spot
community spread in
clusters and mount a
targetted response
extractedfromnasopharyngealswabsfrom
multiplepatients.Thismethodwasusedto
test clusters of patients during the early
stages of the HIVepidemic,when PCRtest-
ingwasexpensive.Thereisevidencetosup-
portthatupto64swabscanbecombinedin
oneRT-PCRtest.Ifevenonepatientwereto
carry the coronavirus, then the combined
test would show a positive. Our purpose
here is to not identify individual patients
withCovid19,buttoidentifyclusterswhere
the virus exists.At this time, if we assume
ILLUSTRATION: ROHNIT PHORE
and possiblythat of the oil industry,too. have substantially slimmed balance
In the late 1990s,the Economist mag- sheets and reduced valuations. Exxon’s
azine did a story on oil prices.The cover market capitalisation has, for instance,
page had a picture of an oil barrelwith an halved over the past month.Against this
arrow painted in red slicing downwards
across the barrel with ‘$5?’ written in
backdrop, we should drop the expecta-
tion of international interest in BPCL.Or
bold on the side. I am reminded of this
article because it is reflective of current
for that matter Middle East investment
into India. The $40-billion Ratnagiri
conditions.Today,the price of oil,at just refineryproject bySaudiAramco and the
above $30/bbl (at the time of writing),is UAEwill certainlynot see the light of day.
at a decade low and volatile downwards. Weshouldalsoexpectadropintheinten-
The average price in 2019 was $64/bbl. sity of domestic exploration.
The reason is two-fold. One, the Saudis Three, the world, post-Covid,will be
have ramped up production from 9.8 different from the world, pre-Covid.
mbd (pre the March meeting) to in Behaviours will shift and these will
excess of 12 mbd today. And two, there deepen uncertainties. ‘Social distanc-
has been an unprecedented Covid- ing’ may change the dynamics of
induced crash in demand.This is because ‘shared mobility’. Teleporting may
of the lockdown of the two main drivers reduce business travel. Heightened
of oil consumption—transportation and awareness of the porosity of national
industry. It is estimated that oil con- boundaries may accelerate the push
sumption in the current quarterwill fall towards decarbonisation? These uncer-
byapproximately25 mbd.This is almost tainties will push the petroleum mar-
as much as the OPEC’s production. The ket deeper into a no-man’s land.
Saudis and Russians maystill come to an India cannot escape its own domes-
understanding that rallies the price,but tic verity. Whatever be the shape of the
itwould not surprise me if the Economist post-Covid international petroleum
magazinewrote anothercoverstorywith market,India will be dependent on it to
a similar picture, except secure its domestic energy
with ‘$20?’ instead of ‘$5?’ requirement.The question
written next to the arrow. India should should,therefore,be asked:
Three verities now hang What should the decision-
overthe petroleum market.
increase its imports makers do today to
One, every major oil- of gas (LNG) from respond to such a contin-
exporting country will face Australia, Africa gent and uncertain future?
abudgetarycrisis.Qatarhas and the US. This Ihavethefollowingfour
the most robust balance suggestions.
sheet of all OPEC members.
will reduce the First,it should fill the oil
But it still needs an oil price political risks of caverns with strategic
of around $40/bbl to bal- dependency on oil reserves.Pricesmayfallfur-
ance its books. Algeria has supplies from the ther, but rather than bot-
the weakest. It needs in tom fish, it should leverage
excess of $100/bbl. Saudi Middle East the availability of capacity
Arabia is at theAlgerian end to secure discounted sup-
of the spectrum,requiring a plies.Theworld has run out
price of around $80/bbl. This does not of storage capacity and producers may
meanthatthesecountriesareabouttogo paypremiumdollartofindspacefortheir
financiallybellyup.Most of them,and in unsold cargoes.
particulartheGulfproducers,haveabun- Second,it should increase its imports
dant sovereign reserves.Butwhat it does of gas (LNG) from Australia, Africa and
mean is that theywill be hard-pressed to the US.Thiswill reduce the political risks
sustain their social and economic com- of dependency on oil supplies from the
mitments. They will have to cut back on MiddleEast.Gasisalsonoweconomically
subsidies,raisetaxes,andthecitizenswill competitive. The landed price of LNG is
berequiredtotightentheirbelts.Thiswill low enough to kick-start some of the
not be well-received and India should stranded gas-based power plants.
build into its oil supply plans the likeli- Third,it should unthread the‘patch-
hood of civil strife in these countries. work quilt of authority’ exercised by
Two, the international oil industry bureaucrats,regulators and politicians,
will be reconfigured.Already, at current which today stifles management and
prices, a large number of companies are operational efficiency of petroleum
finding it difficult to cover their cash companies.
costs and have been forced to cut pro- And finally,it should create the insti-
duction and shutter operations.At even tutional basis for an integrated energy
lower prices, they will be bankrupted. policy. If there is one message we must
Whatever the final outcome, one fact is internalise from Covid, it is the impor-
clear.Those that survive the carnage will tance of collaboration and coordination.
TESTING TIMES
RAMANAN
LAXMINARAYAN &
NACHIKET MOR
Laxminarayan is director and senior fellow, Center for
Disease Dynamics, Economics & Policy, and senior research
scholar, Princeton University. Mor is Visiting Scientist, The
Banyan Academy of Leadership in Mental Health
Views are personal
that less than 1% of the population is afterthetest.Inanidealsituation,eachpos-
infected,thentherearelikelyplacesthatare itivetestneedstobefollowedupbydetailed
entirely Covid 19-free.A method like this contact tracing,but,even if that were theo-
could help us identifypockets that do have reticallypossiblenow,itwouldinvolveenor-
Covid19,so that we can arrange for ambu- mous costs and human resources that may
lances and health care facilities closer to be difficult to find at this time.The alterna-
these locations and payclosewatch. tive is a continued full lock-down of the
Testing is not an end in itself,and while entire country,but such an extended lock-
testingofindividualsmayhelpeaseworries down is not onlychallenging to implement
of individuals at a point in time,there is lit- but also brings with it enormous costs that
tle assurance that they will not acquire the could quicklystart to outweigh its benefits,
infectionfromthecommunityimmediately even in terms of lives saved.
MONDAY, APRIL 6, 2020
OPINION 7
Banking in
times of corona
PRATEEK
ROONGTA
Managing director and partner, Boston Consulting Group, India.
Views are personal
A resilient and robust banking network
will give our economy the much-needed
vigour to overcome this crisis
T
HENEWDECADEhasstartedonaturbulentnote
for humanity.The impact of Covid-19 has been
unprecedented.Whilehealthcare,airlines,hospi-
tality,andretailexperiencetheimmediateeffect,
banking is no exception.Despite large scale digi-
talisationoverthelastdecade,banks’businessmodels,largely
rely on human interaction.Banks need to reorient their busi-
ness models swiftly,and implement measures for employee
safetyand businesscontinuity.
While banks in India have commenced a series of actions
in response to Covid-19, such as establishing a central task
force, curtailing travel, cancelling events, and reducing out-
boundsalesforce,giventhepaceatwhichthesituationisevolv-
ing,this maynot suffice.Here are a fewsuggestions:
Design“distance banking”model: Branches with low
footfall,ornearanother,should be temporarilyclosed.Others
may be kept open on alternate days or for shorter hours.“Dis-
tance banking”involves modificationsto branch layout.
Keep employee safety and communication
centrestage: Define and enforce policies restricting physical
presence.Carefulattentiontobasichygienewithadeepclean-
ing of premisesand availabilityof sanitisers is fundamental.
Focus on‘smart’working: Innovate and experiment to
discover“new ways of working”and customer engagement.
While demonetisation made digital currency ubiquitous,
Covid-19 could make “Virtual RMs” a household feature.
Ensuring a semblance of a regular working day with remote
teams in the“new”working model is critical-discuss detailed
schedules,weeklyagendas and frequent reviews.
Planforbusinesscontinuity:Divideemployeesinto“ros-
ters”and assign workdays and hours. Ensure minimal office
spaceoverlapbetween“rosters”andplanforcontacttracing,if
required. Segregate offices and
employees’basis activity.
Reimaginecreditpolicies:
Pro-activelythinkofchangesin While banks in
credit policies,don’t react post- India have
facto.These can include mora- commenced a
toriumforrepayments,increas- series of actions in
ing loan tenure, interest rate
concessions, waiver on penal response to Covid-
charges and interest for late 19, given the pace
payment. An absence of pre- at which the
agreed policies may result in a
situation continues
knee-jerk reaction.
Digital capabilities a to evolve, this may
“must-have”: Migrate cus- not suffice
tomerstodigitalplatforms.Sim-
plifyonboardingoninternetand
mobilebankingapps,providetutorialsonlineortelephonically
andenhancedigitalchannelstofillanygaps.Spikesintheusage
ofdigitalchannelswillrequirescenarioplanningtoensuresys-
tems remain online despite high online traffic.
Leadwithinnovation:Offerinnovativeproductsrelevant
to customers in current context. Health insurance to cover
Covid-19relatedquarantineorhospitalisation,newloanprod-
uctsforself-employedandSMEswithlowcollateralandspeedy
processing.
Strengthen cyber-security: Banks should review their
security infrastructure, taking into account the type of net-
works employees will access (public or private) and build sys-
tems for secure sign-in from remote locations to ensure end-
point security.
Maintain financial discipline: The looming recession
andreducingconsumerdemandwillnecessitatebankstotar-
get cost efficiencies. This requires rigorous and prudent
expense management processes, re-looking at non-critical
capital expenditures and rationalising discretionary G&A
expenses eg, marketing channels/expenses, training
expensesetc.Insteadofreducingtheworkforce,banksshould
consider restructuring compensation to minimise the
impact on profitability and defer hiring plans until the situ-
ation stabilises.
In these times,banks must focus on employee well-being
and safety,while keeping the lights on to safeguard prepared-
ness forrecoveryand rebound.Aresilient and robust banking
network will give our economy the much-needed vigour to
overcome this crisis.
infected, but to pick up even a trace pres-
ence of the virus in the cluster, and wher-
ever such a trace is observed, to assume
that the entire cluster is infected.Such an
effort may be able to sharply reduce the
number of tests the government needs to
carry out and will allow it to extend the
quarantine only to those clusters where
such traces are observed.Initially,a larger
grain-size of, say 200,000 individuals (a
block) could be used and wherever traces
are observed, a finer grain size of say,
10,000 individuals could be considered,
thus increasing thespeed oftesting aswell
as further limiting the number of test kits
that are used.
There is, of course, the risk that the
sampling process may not pick up every
case and a cluster could potentially be
tagged as virus-free when, in fact, it has
the virus. There is clearly no way to
entirely eliminate this possibility with-
out simultaneous universal testing of
every person in the cluster.This is impos-
sible to implement even with an unlim-
The government could instead use its ited supply of testing kits,and perhaps a
limited supply of kits not for on-demand more effective alternative may be to keep
testing but to combine the pooled-testing repeating this overall exercise every so
approach outlined earlier with one which often, and to keep a watchful eye on any
partitions the entire country into non- other emerging signs of Covid 19 in the
overlapping geographical clusters, com- negative clusters.
prising10,000to50,000individualseach, The weeks ahead will need a uniquely
and then, using a risk-based sampling Indian approach to Covid 19 that recog-
strategy,rapidlytest groups of individuals nizes both our constraints and our ability
within each cluster before the current to innovate.Our success against the novel
lock-downislifted.Here,thegoalwouldbe coronavirus depends on both a prompt
notto identifyspecificindividualswhoare and a smart response.
 8 FINANCIAL EXPRESS
eFE
MONDAY, APRIL 6, 2020
● TECH TO THE RESCUE
Containing Covid-19: Nasscom CoE
incubated startups show their mettle
While DronaMaps is
helping map Covid-19
patients in Haryana and
other states, Blinkin has
provided remote tech
support for installing air
ventilation systems in two
Wuhan hospitals
SRINATH SRINIVASAN
TWO STARTUPS INCUBATED at the Nass-
com Centre of Excellence (CoE) IoT & AI,an
initiative of the ministry of electronics and
information technology (MeitY) and Nass-
com, have joined the battle against Covid-
19. DronaMaps, based in Haryana, and
BlinkIn, based in Bengaluru, are tech star-
tups specialising in drone technology and
remote accessibility,respectively.
DronaMaps isworkingwith the depart-
ment of IT and communications,Haryana,
to help map the infected and quarantined
citizens,usingdronetechandanalytics.“We
hadfirststartedworkingwithPunjab,repli-
cated the model with Haryana and are at
varying levels of implementationwith four
● DROR APP
Social
distancing
matters
An app that can track your
social distancing score and
trace users that have come
in contact with a positive
Covid-19 patient
FE BUREAU
ATATIME when social distancing is seen as
a highly effective way to contain the rapid
spreadofcoronavirus,here’sanappthatcan
track your social distancing score and trace
usersthathavecomeincontactwithaposi-
tiveCovid-19patient,simultaneouslyalert-
ing them.Available for Android users, per-
sonal safety app DROR has an innovative
featuretosupportongoingsocialdistancing
measures amid the Covid-19 outbreak in
the country. By downloading this app and
registeringwithDROR’sonlinecommunity,
theappallowsuserstoaccuratelytracktheir
social distancing score in real time.
The ‘Social Distancing Tracker’ feature
enables users to maintain their daily social
distancing score by exchanging short dis-
tance Bluetooth signals between phones to
detectotherusersoftheappwhoareinclose
proximity.The DROR app processes infor-
mation based on Machine Learning and
Artificial Intelligence-based algorithm and
informs the users their social distancing
scoreinrealtimealongwithalertingthemif
theyget close to too manypeople.
In the past,‘contact tracing’relied only
on the memory of interviewees. However,
there have been instances when intervie-
wees cannot rememberall theircontacts or
didn’thaveinfoaboutpeopletheyhadbeen
incontactwith.Consequently,thesocialdis-
tancing feature of this app will also help in
contacttracingwithmorepeopleusingthis
app.Along with a social distancing tracker,
DROR’s users also get access to Covid-19
associated health alerts such as washing
yourhandsinrequiredtimeintervalsandall
essential information about social distanc-
ing and Covid-19.
Dhiraj Nauhbar, co-founder and CEO,
DROR, says,“The only way to control this
pandemic is through social distancing.Our
effortistoensurethatweencouragepeople
byshowingthemtheirdaily,weeklyandlast
14 days social distancing score. Our tech
team has worked very hard to create this
solution and we are ready to work with the
Centre and states government to create a
safe network foreveryone.”
Utkarsh Singh, co-founder, DronaMaps
other states.The model is scalable because
moststatesrightnowarelookingforgranu-
lartracking of cases and support in deploy-
ing the technology that enables the same.
The infrastructure in Haryana was already
verymature,withmultiplegroupsofservers
handling all Geographic System Informa-
tion(GIS)requirements,”saysUtkarshSingh,
co-founderofDronaMaps,whichwasincu-
bated at Nasscom CoE, Gurugram. “We
Gadgets
● SAFETY MATTERS
Now, group video chat in a secure manner
A look at some offbeat
group video calling apps
that score well on privacy
ISHAAN GERA
THECURRENTCRISESandlockdownhas
zoomed certain video calling apps into
importance.Companies are using apps to
hold press conferences and engage with
employees who are locked at home.App
Annie’slatestreporthighlightsthatZoom
is the most downloaded app on iOS
amongstallusers.Butithasalsoputfocus
onprivacyandsecurity.Zoomhasbecome
the centre of attention owing to contro-
versies.On Thursday,it was reported that
somehackersgainedcontrolofthemaster
system and zoombombed (yes, this is a
term now) viewers at BARC conference in
India with abusive messages.Afewweeks
ago,Zoomwasamidstanothercontroversy
of deploying Facebook SDK and sharing
data with Facebook for iOS users without
specifying it in its privacy policy. With
researchers exposing vulnerabilities in
apps like Zoom, there is a need to look
beyond. Microsoft Teams, Skype, Google
Hangouts offer viable alternatives, but
therearesomeoffbeatappsthatscorewell
on privacy and even support group video
call features.
WickrPro
KnownforitsconsumerversionWickrMe,
this is a popular platform known for pri-
● TECH TIP
How to digitise your important documents
If you have some spare
time at home and want a
productive project, create a
digital archive of your
personal papers
JD BIERSDORFER
WHILE THE WORLD Backup Day is typi-
cally celebrated most by hard-drive mak-
ersanddata-storageservices,it’ssupposed
tomakepeopleremembertobackuptheir
computers.Butevenifyou’realreadyback-
ing up your digital files, do you have a
backup plan foryourone-of-a-kind docu-
ments and photos that you have only on
paper—like birth certificates, marriage
licenses and military-discharge papers?
Scanning copies of your personal
papers creates a digital archive that can
also be used as a backup,especially if you
have the files password-protected and
storedinasecurelocation.Andevenifyou
don’t have a document scanner,you can
Blinkin co-founder Harshwardhan Kumar (centre) with team members
immediately published the public dash-
boards,andbeganworkontheadmindash-
board to implement it byend of March.”
On-grounddroneteamsaresmallandit
becomes easy for the startup to work in
dense areas, maintaining social distance.
“There are three use cases,delivery,surveil-
lance, and disinfectant spraying. We are
ensuring our network is ready for any of
these.What we are working on now hinges
vacy and security.
The app has end-to-
end encryption and
features like disap-
pearing messages,
butonceyoumigrate
to the Pro version, it
requires your email
ID to log in.The free
version offers enter-
prise grade security
and a channel for up
to 30 users,with 1GB file transfer. Data
can be retained for30 days.There is also a
feature of screen sharing.The user inter-
facemaynotbeaseasy,butsafetyfeatures
trump every other problem. For $10 per
user per month, the app offers more fea-
createyourpersonalarchivewithasmart-
phone,a fewapps and a bit of time.Here’s
a guide to getting started.
Step 1: Get Organised
Gather all the documents you want to
digitise. In addition to vital records, con-
sider other papers you’ve saved over the
yearsandmightwanttoshare,likeoldlet-
ters,certificates,diplomas,newspaperclip-
pings,heirloom family photographs and
othersentimental souvenirs tucked away
in albums orboxes.
Step 2: Use a Scanner
Do you have a printer that was
sold as a “multifunction” device
but that you’ve never used for
more than printing? Dig up the
manual,becauseyourdevicecan
probably scan and photocopy.
Youmayneedtoinstallutilitysoft-
ware or find the scanning function in
yourcomputer’ssystemsettings.Onceyou
have it set up,open the scanning coveron
thetopoftheprinterandplaceyourorigi-
naldocumentorphotographfacedownon
onourexpertiseingeospatialanalyticswhile
not making them limited to drone based
data,” heexplains.Data isalsosourced from
VLR(call records),social media and govern-
ment portals to ensure authenticity.
Meanwhile, BlinkIn finds itself in a
unique position amidst this outbreak.The
startup helped service engineers of Huber-
Ranner to install air ventilation systems in
two Covid-19 hospitals in Wuhan, with
tures like 50 users, premium SaaS sup-
port, one year of data retention and
advanced controls.For the platinum ver-
sion there is no limit on users and unlim-
ited data retention.
Wire Pro
Wire’s free version
can support only 10
users,buttheproand
enterprise versions
offer much more.
Wire is already
knownforitssecurity
benefits. Wire goes
beyond Wickr as far
aschatandotherfea-
tures are concerned.
the glass.Close the lid and select the Scan
option on the printer or computer screen
to create the digitalfile.
Step 3: Scan with a mobile app
Ifyoudon’thaveascanner,yoursmart-
phonecanfillin.Justbrowseyourappstore
and download a mobile scanning app.
These apps use your phone’s camera to
capture an image of the page.
Step 4: Scan old photos with phone
Somedocument-scannerappscanalso
capture photographs, which is handy if
WWW.FINANCIALEXPRESS.COM
STAYING ON TOP
❝
Satya Nadella, CEO, Microsoft
With many of us working and learning remotely, it
has never been more important to stay connected
and on top of what matters.
remote tech support.“Wuhan was a huge
validation of our hypothesis of making
knowledge sharable. In times where the
entirecountryislockedup,wecanhelpavoid
and minimise exposure of doctors, equip-
mentoperatorsandotherpersonnelsincon-
tagious environments. Healthcare equip-
ment operators/ engineers can remotely
instruct local staff at the hospital to do the
work by themselves,” says Harshwardhan
Kumar, co-founder, Blinkin. Furthermore,
once a case/support issue has been docu-
mented,itmakesitavailableforsharingwith
otherusers.
The startup has been approached by
medical device makers in India.“We have
also been approached by Nasscom CoE IoT
Bengaluru,whichhasconnecteduswiththe
Karnatakastategovernment.Weareexplor-
ing the possibilities to work with them.
Startup India also reached out to us to try
and figure out what we can do in these
times,” addsKumar.Thecompanyhaspres-
enceinover40countriesandworksinmore
than 19 languages.
ForNasscomCoE,theCovid-19crisishas
not just given a chance to these early stage
startupstoprovethemselves,buthashelped
itreaffirmitsfaithinthem.SanjeevMalho-
tra,CEO,NasscomCentreofExcellence,says
thattheflexibilityandquickresponsetimes
of these startups, besides their domain
expertise,haveplayedabigroleintheirsuc-
cess.Andtherearemanymorestartupswait-
inginthewingstoprovetheirtechprowess.
“We have five or six startups working with
usindifferentareasofdiagnostic-assistlike
assessing lung condition from xrays to
detecting remote temperature,” he says.
Whilethepowerofthesestartupsisyettobe
seen,the Covid-19 crisis may just turn out
to be the platform where they can prove
theircapabilities.
WireProrequires$4.34peruserandoffers
groupmessaging,HDvoiceandvideocon-
ferencingfeatures.Italsohasanenterprise
versionforhigherlevelsecurityandoffers
this for$8.68.
Riot.im
Although it is not
known how many
users Riot can sup-
port, it is one of the
free apps on this
platform that offers
better security. It
offers seamlessinte-
gration with other
services. So, if you
are a Slack user,
those chats can be integrated with Riot.
More important, the user interface is
easy, and Riot need not be installed on
yoursystem.It can easilybe operatedvia
web browser.
Jitsi
Jitsi may not have
the securityfeatures
of the above-men-
tioned apps, but it
has better integra-
tion. The app is free
to use and can sup-
port 75 people for
video conferencing.
Jitsi can be powered
on using Slack and
has an integration with the app. It may
nothavethebestvideocapabilities,butit
does offer free solutions.
you’re trying to copy old prints firmly
stuckinancientalbums.Oryoucouldjust
take a picture of the photo with your
phone’s camera and use photo-editing
tools to improve theimage.
For faded old prints, an app that uses
artificial intelligence to capture,clean up
and correct colourmight help.PhotoScan
byGooglePhotos,freeforAndroidandiOS,
is one option. Photo Scan by Photomyne
forAndroid and iOS also uses algorithms
to enhance photos.
Step 5: Protect and store your files
Identity thieves are always on the
hunt for personal information,so
password-protecting your files
addsalayerofsecurity.PDF-edit-
ing programs like Adobe Acrobat DC also
include a password feature.If you want
to keep the documents online
with Dropbox or a similar ser-
vice, encrypt them before
uploading.You can also stash
yourfilesonanencryptedflash
drive in a secure location.
NYT
❝
● WORK FROM HOME
Digital tools
are helping
evolve a new
work culture
Google Hangout, Microsoft
Teams, Webex and Zoom are
enabling businesses to
create a collaborative work
environment
Uma Ganesh
WITH THE OFFICES having shifted to
homes of employees,the norms ofworking
and productivity definitions have radically
been changed overnight in most Indian
organisations.Thisposesanewchallengefor
both employees and businesses as working
from home is an unfamiliar phenomenon
that theyare nowgetting used to.
Working from home has led to a big
question for HR and business managers
about how they are going to measure the
productivityof‘unseen’employeesandhow
tomotivatetheemployeestodeliverontheir
designatedresponsibilities.Whileontheone
hand,downsizing oruse of robots are being
touted as possibilities for certain jobs, cur-
rentlymost managers are concerned about
how to continue to meet their commit-
mentstowardstheircustomersandsupport
employees formaking this happen.
Necessityisthemotherofinventionand
innovation.Wehavealreadyseenappsbeing
installed in the mobile phones and other
deviceswhichprovidedailyreportsandana-
lyticstotheirmanagersaboutthetimespent
bytheemployeesonvarioustasks,responses
to customers and thus compare real time
productivityoftheteams.Digitalplatforms
like Google Hangout, Microsoft Teams,
Webex and Zoom are some of the examples
which are enabling organisations to create
collaborative work environment for meet-
ings and discussions, thus continuing to
maintain the human touch and create con-
nectednesswith the organisation.
What is also interesting is that some
organisations who never ever considered
workfromhomeasfeasibleorsawuseofdis-
ruptive digital technologies in their busi-
nesses for certain customer-facing roles as
non-starters,are rethinking the role defini-
tionsandthenumberofresourcesrequired
to be deployed.
Many companies in Europe and the US
have been conditioned towork from home,
as a result of which they had a robust cyber
securitysystemtoaccessdataandenablean
environmentoutsideofthefirewall.Organ-
isationswhohavebeenimplementingcloud
based solutions for their key applications
could swiftlyshift operations to homes.
However,manyIndianfirmswhichhave
beenforcedto implementworkfromhome
policy at short notice, have to strengthen
their data storage and security systems.
Employees need to be vigilant against
potential phishing attacks, false emails or
textmessagesfrommaliciousactorsposing
as theirbosses seekingvital data.
Covid has sounded a wake-up call to
businesses that have already been in the
throesofdigitaltransformationtoconsider
furtherchanges empowered bya combina-
tion of commonly available tools and some
customsolutions.Thishasledtoanurgency
tounderstandandredefinetheneedsofthe
customers as well as learn to do more with
less,resultinginnewopportunitiesforopti-
misationofcostsandenhancingproductiv-
ityin theiroperations.
As businesses try to rethink their para-
digm and show resilience in their strategy,
this is the time when employees have to be
coachedtorecognisethatsuccessasdefined
in the pastwould no longerbe relevant and
theyneedtoadapttothenewnormaldefin-
ing newmetrics forsuccess.
Alongwithcontinuouscommunication
and engagement facilitated bydigital tech-
nology, the effort should also be to enable
employees to act with more confidence,
speed and resourcefulness in the current
scenarioaswellasinthepostpandemicera.
Digital tools have the potential to make the
employees think and act together,thus co-
evolving a newculture in the organisation.
The writeris chairperson,
GlobalTalentTrack,a corporate
training solutions company
 9 FINANCIAL EXPRESS
Investor
MONDAY, APRIL 6, 2020
● INDUSIND BANK RATING: BUY
Liabilityweakness
comes to the fore
Deposit outflow post Yes Bank crisis a surprise; corrective
steps initiated; valuations offer comfort; ‘Buy’ retained
DURING ITS INVESTOR call recently, IIB
updated on its business and likely impact
ofCOVID-19.Wewerenegativelysurprised
by 10-11% outflow in deposits following
Yes Bank’s fallout and on the asset side
despite IIB’s asset moats. We think IIB’s
exposure towards vulnerable segments
remain high. Given the large economic
impact of COVID-19-related lockdown,
IIB’s positioning in assets is morevulnera-
ble than that of its largerpeers,in ourview,
in addition to its weak liabilityprofile.
However, IIB’s 75% correction in the
past 2-3 months with valuation multiples
correcting from 15% premium relative to
HDFCB to +30% discount to Axis Bank
captures all the negatives. Management
seemstobetakingthecorrectstepsnowby
front-ending asset recognition, building
provisioncover,focusingongranularityof
liabilities and reducing bulky asset calls.If
implemented, this should help IIB build a
stronger franchise over time and lead to
lowering ofvaluation discount to peers.
We estimate 10-12% loan growth and
220bpcreditcostinourworstcaseassump-
● APOLLO HOSPITALS
RATING: BUY
Performance
to be hit in
the near term
FY20/21/22e Ebitda down
4.1/15.1/4.5%; TP cut to
`1,550; ‘Buy’ maintained
APHS HAS SEEN a significant decline in
patient footfalls on the back of the 21-day
nationwide lockdown. Except for emer-
gency cases,both in-patients (IP) and out-
patients (OP) volumes have dried up. Due
to the postponement of elective surgeries,
IP volumes declined by 35-40% to 700-
800admissionsperday(vsnormalrunrate
of ~1,200).OPvolumes declined by ~90%
to600registrationsperday(vsnormalrun
rate of 6,000 day). Overall bed occupancy
has fallen to 40% compared to 69% occu-
pancyat the end of Q3FY20 (APHS cannot
cover its operating costs at occupancy
below 50% and faces cash burn).
APHS does not expect a significant
impact on Q4FY20 financials; however,it
seesa largerhitin Q1FY21dueto thelock-
down.Alongwith a decline in domestic OP
volume (which acts as main feed for its IP
admissions), high-yielding international
patients volume (~10% of its IP revenues
in FY19) has also dried up.
Q4FY20preview:WeexpectIPvolume
to remain muted for key Chennai and
Hyderabadclusterhospitalsat1-1.6%y-o-
y range in Q4.Due to lower occupancy and
case mix change (lower elective surgeries),
we expect overall revenues and Ebitda to
declineby6.3%and16.9%q-o-q(y-o-ynot
comparable) on standalone basis.
Maintain Buy: To reflect near-term
disruptioninthehospitalsbusiness,wecut
ourEbitdaestimatesby4.1/15.1/4.5%for
FY20/21/22 respectively.We expectAPHS
to see normalising operations towards the
end of Q1FY21. Despite volatility near
term,we believe the long-term outlook for
its core hospital business is intact. APHS
has no majorcapex need in the next two to
three years. Our DCF driven TP falls to
`1,550 (from `1,875) on lower estimates
and changes in other DCFinputs.
HSBC
Change in estimates
New estimates % Change
(` m) FY20e FY21e FY20e FY21e
Revenues 110,120 122,160 -2.1% -5.2%
Ebitda 15,785 17,408 -4.1% -15.1%
Ebitda
margin 14.3% 14.2% — —
Adj. net
profit 3,059 3,620 -10.0% -30.8%
EPS (`) 21.99 26.02 -10.0% -30.8%
Source: HSBC estimates
While KMB has been able to bridge the
COF difference with large banks, IIB’s
gap has increased from 100bp to 150bp
over 2 years
1.8 (%)
1.6 IIB COF spread(v/s large banks)
1.4
1.2
1.0
0.8
KMB COF spread(v/s large banks)
0.6
0.4
0.2
0.0
-0.2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020
Source: Company data, Nomura estimates
tion with ROEs normalising to 15% in
FY22Fafterfallingto12%inFY21F.Valua-
tions provide comfort, but we think larger
banksprovideamuchbetterrelativesafety
net to ride out the current cycle.
Liability weakness showing up – taking
corrective measures
■ Management highlighted that deposit
Personal Finance
● FIXED INCOME
Falling interest rates? Ways to
reduce re-investment risks
Investors should continue
to invest in small savings
schemes as the interest
rates are still higher than
that of bank FDs. They
should look at tax-free
bonds and avoid company
deposits
SAIKAT NEOGI
THE LOWERING OF interest rates of
fixed-income products such as bank
deposits and small savings schemes will
impact risk-averse investors. As falling
interests will reduce the returns,individ-
ual investorswill nowhave to look atvari-
ous ways to reduce the reinvestment risk
and diversifytheirasset portfolio.
As most fixed-income products come
withlock-inperiod,investorsmustlookat
theirnear,mediumandlong-termliquid-
ity needs and financial goals and even
post-tax returns before investing.
Small savings: Still better than
bank deposits
AfterReserveBankofIndiacuttherepo
rate by 75 basis points (bps) to 4.4% on
March 27, banks have reduced their
deposit rates, too. In fact, FD rates have
been coming down for the past six
months.State Bank of India has cut inter-
est rates on FDs,twicein March.
Similarly, in one of the steepest-ever
● COVID-19’S IMPACT ON INSURANCE
Demand for health &
life plans set to spike
Lower Ulips volumes in FY2021E pose risk of lower
overall annualised premium equivalent growth
OUR ANALYSIS OF previous epidemics
suggests a sharp rise in demand for term
andhealthinsurancepoliciesduringthese
periods.Itisdifficulttoquantifytherisein
premiumvolumes due to Covid-19 as the
intensity and spread of this pandemic in
India remains unclear. Life and health
insurancecompanieswilllikelybethekey
beneficiaries of anyrise involumes.
A few global precedents
SARS (Severe Acute Respiratory Syn-
drome):Aviral respiratorydisease,spread
inChinaandSingaporeduringNovember
2002toJuly2003.During2002and2003,
outflow of 10-11% following Yes Bank’s
fallout was largely led by 2-3 states mov-
ing out deposits (65-70% of the total out-
flow) and partly led by corporates (+30%
of the impact).This in context of a 2% out-
flow disclosure (17 March) is a clear nega-
tive surprise.Management indicated that
this will lead to lower CASA ratios but will
likely have limited impact on margins
given it has replaced 50% of the outflow
by refinance borrowing (3-yr duration)
and partly by FX borrowings (7-month
average durations),Bank CDs,and repo of
cuts, the government slashed small sav-
ings rates by up to 140 basis points with
effect from the first quarter of 2020-21.
While the cutswill reduce the earnings of
depositors, it will help banks to reduce
their lending rates as they have always
cited that the high small savings rates as
animpedimenttoeffectiveratecuttrans-
mission. Even after the rate cut,the rates
of small savings are still higherthan bank
deposits.Whiletheinterestratefor5-year
termdepositsofSBIis5.7%,therateof5-
yearpostofficetimedepositis6.7%,adif-
ference of 100 bps. One bps is one-hun-
dredth of a percentage point. Popular
schemes such as Public Provident Fund
ChinaLifeInsuranceCompany(CLIC)saw
40%CAGRinshort-termhealthinsurance
and34%CAGRinlong-termhealth,whole
andtermlifeinsurance.Thisis higherthan
3% CAGR and 10% CAGR over FY2004-
11 observed in these products. In Singa-
pore,overall individual business (exclud-
ing annuity) declined 30% and 23%
year-on-year (y-o-y) in 2002 and 2003
compared to 74%-134% y-o-y growth
overthepastthreeyearsledbydropinnon-
linkedbusiness(down18%to36%y-o-y).
MERS (Middle East Respiratory Syn-
drome): Spread rapidly in Saudi Arabia
during 2QCY13 to 3QCY14.BupaArabia,
EXPERTVIEW
excess SLR/non SLR investments.
■ The bank still maintains LCR of 112%
and has not used anyMSFfacility.Further,
management indicated that deposit flows
have now stabilised.
■ In case of further outflows, IIB still has
large refinanceopportunity(40% of loans
PSL compliant) and recent cut in CRR and
increase in MSF should help to mitigate
any large outflows.
Our view: Historically, IIB has been
weak on liabilitieswhile asset moats made
upforthisinthepast.Thesizeofoutflowis
` NHPC.As there have not been any fresh
ILLUSTRATION: SHYAM KUMAR PRASAD
(7.1%) SukanyaSamriddhiYojana(7.6%)
havetheaddedtaxbenefitwhichresultsin
higherreturns.So,investorsshouldinvest
up to `1.5 lakh in a financialyearin these
schemesandgethighertax-freereturnsin
the long-run.The interest rates of other
small savings schemes such as 5-year
NationalSavingsCertificateswillbe6.8%,
5-yearMonthlyIncomeSchemeis(6.6%);
124-month KisanVikas Patra (6.9%) and
SeniorCitizen Savings Scheme at 7.4%.
Company deposits: Tread
with caution
It will be tempting for investors for go
for company deposits as they pay higher
` `
` `
`
` `
` `
` ` ` 8%y-o-yrise duringCY2016-18.
` ` ` `
`
` ` ` `
`
` ` ` `
`
` ` ` `
`
` ` ` `
`
` ` ` `
` ` ` negativeoperatingvariance.Thisremains
` thekeyrisktoFY2021Evalueofnewbusi-
ILLUSTRATION: SHYAM KUMAR PRASAD
oneofthelargesthealthinsurers,reported
44%and81%y-o-ygrowthinpremiums
during 2013 and 2014. Overall industry
health insurance premiums increased
22% y-o-y in 2014 compared to 14%
CAGRover2010-13and2%CAGRduring
2015-19.Overalllifeinsurancepremiums
increased7%and15%y-o-yin2014and
2015,respectivelyascomparedto2%-7%
WWW.FINANCIALEXPRESS.COM
While IndusInd Bank’s current valuations provide
comfort, we think larger banks provide a much
better relative safety net to ride out current cycle
—Nomura
likelyreflected inthe steep stock price cor-
rection in past 2-3 months. IIB’s much
higher bulk dependence and higher
deposit concentration (top-20 depositors
constitute+24%ofdeposits)isshowingup
in funding cost gap vs larger peers which
has increased to 150bp vs 100bp in FY18.
This restricts its abilityto go down the risk
curve.Management acknowledged weak-
nessinliabilitiesandindicatedashiftfrom
growth focus to course correction.
NOMURA
interest, but they can be risky and may
default on payment of interest and even
the principal amount.Ahost of real estate
companieshavedefaultedonrepayments
in the past,and more recently non-bank-
ing financial companies such as Dewan
Housing Finance Ltd have defaulted on
repayments and stopped all premature
withdrawals of its deposits.
Companyfixeddepositsareunsecured
loans,where repayment of principal and
interest are not guaranteed.In case of any
default or delay, investors have little
recourse. An investor must analyse the
financial statements,performance of the
company and its management to take an
informed decision before investing in
companydeposits.
Long-term needs: Go for
tax-free bonds
Long-terminvestorsshouldlookattax-
freebondsofpublicsectorcompanieslike
IRFC,PFC,NHAI,HUDCO,REC,NTPC and
issuesofsuchbondssince2016,investors
can buy these bonds from the secondary
market.Nothavingtopaytaxontheinter-
est earned on such bonds makes them
more attractive than other taxable debt
instruments.Whiletheinterestpayments
onthesebondsaretaxfree,therewouldbe
capital gains tax if an investor sells before
maturityat a profit.
Tax-freebondsmakeswiseinvestment
for those in the higher tax bracket (30%)
as dividends will be taxed in the hands of
the investorat his marginal rate from this
financial year. Investors can lock-in their
capital for a longer tenure and earn tax-
efficient returns.Theyare an ideal invest-
ment option to build a retirement portfo-
lio. Under tax-free bonds, while the
investor does not get any tax exemption
underSection 80C,the interest accrued is
completely tax-free under Section
10(15)(iv)(h).Even the returns are higher
in tax-free bonds as compared with bank
term deposit rates.
y-o-y decline over CY2010-13 and 3% to
Expect pressure on Ulips
Lower unit-linked insurance policies
(Ulips) volumes in FY2021E pose risk of
loweroverall annualised premium equiv-
alent(APE)growthandmoreimportantly,
ness (VNB) growth. A slowdown in the
economy and muted capital markets will
likely affect growth in savings policies.In
ourview,volumesinUlipswilltakeasevere
knock in FY2021E.Weak capital markets,
coupledwithchangesinregulations,ledto
-12% CAGR in private sectorAPE during
FY2010-14 as compared to 30% CAGR
during FY2006-08.
ApartfromslowdowninUlips,increase
insurrendersisanotherriskforthesector.
While Ulip volumes moderated post
FY2018, decline in persistency has been
negligible.However,the decline in persis-
tencypostFY2010wasmuchhigher,likely
due to highermis-selling.
Source: Kotak Institutional
Equities Research
● HERO MOTOCORP
RATING: BUY
Correction
offers investors
an opportunity
Company focus has shifted to
contingencies; likely to gain
in H2FY21 from possible
rural recovery; ‘Buy’ retained
HERO MOTOCORP’S (HMCL'S) manage-
ment hosted a conference call to update
investorsonbusinessimpactofCOVID-19
outbreak and to allay fears on BS-VI tran-
sition. Key points from the concall: (i) BS-
IV inventory liquidation largely to com-
pletewithstock(~12kunits)inNCRregion
to be recalled; BS-VI dealer inventory is of
one month (ii) HMCL to support dealers
amidstCOVID-19lockdownwithfocuson
easing liquidity concerns; (iii) current
focus remains on maintaining health pre-
cautions and developing contingencies
aroundpossiblesupplychainissues;(iv)no
liquidity concerns as company holds liq-
uid funds worth ~`40 bn.
We believe demand recovery could be
led by rural markets, driven by possible
improvement in cashflows and HMCL’s
high rural exposure (>50% demand) tilts
near term beneficiary scales in its favour.
Maintain Buy.
Key highlights of the call
■ Before the nation-wide lockdown,busi-
ness continuity taskforce was formed to
monitorkeybusiness challenges and mit-
igate impact. Manufacturing at all the
facilities in India,Bangladesh and Colom-
bia halted currently due to COVID-19.
■ HMCL has taken steps to make pay-
ments to a large number of suppliers and
MSMEs.HMCL is witnessing cash burn of
~`2 bn month basis in thelockdownstate.
■ On outstanding BS-IV inventory, man-
agement indicated ~150k units of inven-
tory prior to
lockdown and We believe HMCL
was expected to will benefit from a
liquidate all by rural recovery due
23rd March to high motorcycle
with retail sales market share in
growth clocking
key states; thus,
highdouble dig-
its. Supreme volume growth
Court order to could improve
extend registra- from H2FY21
tions of BS-IV
vehicles up till
30th Apr’20 has led to continued online
sales of vehicles currently.
■ Nowmanagement expects to onlyrecall
~12k units (NCR unsold BS-IV inventory)
due to Supreme Court directive against
BS-IV registrations in NCR region post
31st March.
■ Company has already launched 95% of
its portfolio on BS-VI platform. Benefits
fromlowercommoditypricestoaccruefor
crude, aluminium as well as precious
metal in FY21 as production resumes.
Outlook and valuations
PostCOVID-19outbreak,revivalcouldtake
longer for high-ticket discretionary pur-
chases;webelievetheneedforsafer/afford-
ablenon-publictransportmobilitycouldaid
2W’s demand revival in rural markets (bet-
ter agricultural cashflow via better rabi/
kharifharvest).WebelieveHMCLwillbene-
fit from better rural recovery due to high
motorcyclemarketshareinkeyruralstates;
thus, volume growth momentum could
improve from H2FY21. Meanwhile, the
recentpricecorrectionprovidesagoodentry
opportunity to investors.We maintain our
Buyratingatatargetmultipleof14xFY22e
EPSwith a target priceof `2,501.
ICICI SECURITIES
Trailing PE
35
30
1-SD up
25
20 Mean
15
1-SD down
10 Trailing PE
5
Sep ‘09
Mar ‘10
Sep ‘10
Mar ‘11
Sep ‘11
Mar ‘12
Sep ‘12
Mar ‘13
Sep ‘13
Mar ‘14
Sep ‘14
Mar ‘15
Sep ‘15
Mar ‘16
Sep ‘16
Mar ‘17
Sep ‘17
Mar ‘18
Sep ‘18
Mar ‘19
Sep ‘19
Mar ‘20
Source: I-Sec research, 12m trailing data
 10 FINANCIAL EXPRESS
BrandWagon
MONDAY, APRIL 6, 2020
● OTT
Now streaming,
more than ever
OTT platforms see a surge in consumption and
subscriber count, as viewers seek fresh content
DEVIKA SINGH
AMIDST THE NATIONWIDE lockdown,
OTT platforms are striving to meet the
growing entertainment appetite ofview-
ers. According to a recent survey by
mobile marketing platform InMobi,46%
viewers are watching more content
online. Another consumer survey con-
ducted by Hammerkopf has found that
OTTconsumption primetime has moved
to 7 pm onwards, as opposed to 10 pm-
12 am before.
What this means is that the likes of
Netflix, Hotstar, Amazon Prime Video,
Zee5, ALTBalaji and Voot Select will
have to up theirgame.Experts believe that
viewership on these platforms could grow
further in the coming days, as
television channels run out of content.“As
these channels have been unable to shoot
due to the lockdown, they are
running old content. In such a scenario,
people will gravitate towards OTT
to watch fresh content,” says
Paritosh Joshi, media consultant and
In The
News
Broadcasters make
four pay channels free
THE INDIAN
BROADCASTING
Foundation (IBF) has
announcedthat fourof its
memberbroadcasting
networks have decidedto
waive the tariff on four
channelsfora period of two months.Sony’s
SonyPal,StarIndia’s StarUtsav,ZeeTV’s
ZeeAnmol andViacom18’s Colors Rishtey
will be availabletoviewers free of charge
on all DTH and cable networks.
HUL completes merger
with GlaxoSmithKline
FMCG major HUL
has completed its
mergerwith
GlaxoSmithKline
Consumer
Healthcare.
In addition,the Board of Directors of
HUL has approved HUL acquiring the
Horlicks brand for India from GSK for
`3,045 crore.Brands such as Boost,
Maltova and Viva will now come under
HUL’s umbrella.
Dentsu launches
DAN Solutions in India
DENTSU AEGIS
NETWORK (DAN) has
launched DAN
Solutions in India,
which will use an
“outcome-driven”
approach and tap into
the network’s creative,
media and CRM
expertise.Narayan Devanathan has been
appointed the CEO of DAN Solutions
India.He will retain his existing role as
group executive & strategy officer,DAN,
South Asia.
Ogilvy Delhi wins a
new business
SHEELAFOAM HAS brought Ogilvyon
board to handlethe creative and digital
dutiesof all its brands including the
flagship brand Sleepwell.The agencywill
work on an integrated marketing
communication strategyto strengthen the
brand’s position in the mattress category.
IN10 Media partners
with Zee5
IN10 MEDIA HAS entered into a two-
channel content partnership with OTT
platform Zee5.Under this deal,Zee5
users will have access to IN10 Media’s
infotainment channel Epic TV,and
youth-centric music channel ShowBox.
Sony Pictures Networks
expands partnership
with WWE
SONYPICTURESNETWORKS India (SPN)
andWWE have announced a five-year
extension aswell as an expandedbroadcast
agreement.WWE’sweeklyflagship
programmingand localisedcontentwill
nowbe availablein India and the Indian
subcontinent onTVand digital platforms.
principal,ProvocateurAdvisory.
Need for more
To cater to this increase in
demand,platformssuchasAmazonPrime
Video and Zee5 have made a few of their
shows free to watch. Under its #BeCalm-
BeEntertained initiative, Zee5 is offering
premium content including movies and
the first episode of some of its original
series for free. Tarun Katial, CEO, Zee5
Motobahn
● EXPLAINED
Covid-19 may change how you buy cars
The process may go online.
Also, even though usage of
shared mobility may get
reduced, new-car sales
may not rise because of
weak economic sentiment,
higher cost of ownership
VIKRAM CHAUDHARY
SELDOM, IF EVER, has the Indian pas-
senger vehicle (PV) sector faced a hard-
ship such as the Covid-19 pandemic.It’s
hit during the BS4-to-BS6 switch—so it
won’t just extend ongoing slowdown,
but might also change people’s car-buy-
ing habits.Production has stopped,foot-
fall in showrooms is zero due to the lock-
down,and major events are cancelled or
being done digitally.In fact,even before
the lockdown started, the Federation of
Automobile Dealers Associations noted
that footfalls in dealerships had gone
down to 45% by mid-March.
Online buying
Many OEMs already have an online
car-buying mechanism in place. The
impact of Covid-19 on consumerbehav-
iour will make OEMs think about the
changingnatureoftheirinteractionwith
consumers,andtheroleofthedealership
networkandtheirsalesteams,saysVinay
Raghunath, partner & leader, Automo-
tive Sector,EYIndia.“An integrated phy-
gital(physicalplusdigital)platformwith
digitally-enabled salespersons will
become critical success criteria to tap
intoselectconsumersegments,”headds.
However, the role of dealerships
won’t diminish.RajeevChaba,president
& managing director, MG Motor India,
says that while most people shortlist a
carbefore going to a showroom,a caris a
product that you want to feel, touch,
smell and drive.“People will still go to
showrooms to make the final decision.”
Shared mobility
Kavan Mukhtyar, partner & leader,
Automotive, PwC India, says that, for
● PRE-OWNED CARS
From BS4 to BS6, drawing
the impact of transition
GAJENDRA JANGID
MARCH 31, 2020, was the deadline to
stop the sale of BS4vehicles in India.The
Supreme Court extended it by 10 days
postthecoronaviruslockdown.Carmak-
ers have started rolling out BS6-compli-
ant cars, and retailers are in a hurry to
clear BS4 inventory by offering irre-
India, says the platform has witnessed an
80% increase in subscriptions and over
50% growth in time spent recently.
Amazon PrimeVideo,meanwhile,has
made some of the kids content on its
platform free in India. Viacom18’s Voot
Select, the latest entrant in the SVoD
some time, users who earlier preferred
shared mobility may consider buying
cars—used ornew.“Therewillbeaswitch
in the short term towards‘owning’cars.”
The thought of social distancing is
going to stay for a couple of quarters,
beforeitdisappearsfromtheconsumer’s
mind, adds Gaurav Vangaal, associate
director, IHS Markit. “We should see
some usage decline in shared mobility,
but itwill depend on a particularsection
of the consumer.”
Harish Bijoor, brand expert and the
founder of Harish Bijoor Consults, says
thatride-sharing platformssuchasUber
and Olawill bounce back once the fearof
transmission of Covid-19 virus goes
away.“Old habits die hard,”he says.
Raghunath has an interesting statis-
tical observation: “One could broadly
classifytotalpassengerkmrunonIndian
roads into sub-categories related to
intra-city work km, intra-city personal
km,inter-citykm and shared km (shared
mobility).While there has been a recent
trend favouring a gradual increase in
‘shared km’, it will be interesting to see
consumer behavioural changes over the
next fewmonths as a result of continued
adherence to social distancing. This
would impact usage across sub-cate-
gories, and in the short- and medium-
sistible discounts.What is the impact of
all this on the used car industry?
The used carindustry,surprisingly,is
a net gainer in the switch to BS6, as the
rule doesn’t restrict buying or selling of
used cars post the deadline.
Pre-owned carprices depreciate any-
wherebetween20-35%inthefirstthree
years, and then the depreciation rate is
WWW.FINANCIALEXPRESS.COM
● NUMEROLOGY
966 mn: estimated mobile users in India by 2023
907 mn: estimated internet users in India by 2023
46.2 bn: number of mobile apps Indians will
download by then
— Cisco’s Annual Internet Report
space, has reported a spike in subscriber OTT platforms to reduce the quality of
numbers. Ferzad Palia, head,Voot Select, video to reduce the strain on the cellular
youth,music and English entertainment, network infrastructure.
Viacom18, says the uptake for the plat- “If everybody is constantly using the
form has been “almost three-times internet, then data bandwidth will start
higher than estimated”. becoming an issue,and people will not be
“We have only launched two original able to have a seamless experience,” says
shows so far,andwehave three Hindi orig- Joshi. However, he adds that the current
inals and five regional shows shot and surge in viewership could translate
ready for release. We also have a host of to more subscribers for these players in
international contentwhichwill premiere the long run.
in India,”Palia adds. “OTT platforms with a smaller base,
Viewers are consuming content across such as Amazon Prime Video and Netflix,
genres. Divya Dixit, SVP, marketing, ana- might even end up doubling their
lytics, and direct revenue,ALTBalaji, says subscribers; Hotstar, which already has
thrillers,youngromanceandurbandrama a substantial subscriber base, might
aresomeofthetop-perform- see a growth of 20-50%,”
ing genres on the platform. A Hammerkopf he estimates.
Shows such as Kehne Ko Neena Dasgupta, director
Humsafar Hain, It Hap- report says OTT and CEO, Zirca Digital Solu-
pened in Calcutta, consumption tions, believes an adverse
Baarish and Dil Hi primetime has effect is also possible. “The
To Hai have seen a moved to 7 pm growth of these platforms
spike amongst onwards, as and their performance could
women in the 25- opposed to 10 pm- be impacted if the lockdown
45 age group period continues for the long
12 am before
acrossIndia,includ- term and the economy suf-
ing rural areas, she fers. To save money, people
shares, whereas may bring down their discre-
Apharan,Ragini MMS and Code M tionary spends — such as those on OTT
are seeing interest from the male subscriptions — if the economy takes a
audience in the 22-45 age bracket. downturn. This might reduce their paid
The viewership for movies especially subscriber base,”she cautions.
has gone up across the platforms.Cinema Hotstar, the top OTT player in India
streaming service MUBI has seen a 28% with 300 million monthly active users as
rise in viewership on its platform in of July last year,according to RedSeer,will
March,as compared to February. nowhave to counterthe setbackcaused by
the cancellation of the Indian Premier
Will it last? League2020,whichbroughthugetraction
Experts say that maintaining the stream- on its platform. Dasgupta says the com-
ing quality could be a major challenge for panywill nowhave to invest in“more orig-
these players. Earlier in March, the Cellu- inal content and bring in international
lar Operators’ Association of India asked shows to make up for it”.
Changing habits
ChabaofMGMotorIndiabelievesthe
pandemic will leave a lasting impact on
consumer mindset.“First, people above
40years of age,who have more moneyin
theirhands,will start thinking about the
conceptofYOLO(youonlyliveonce),and
might start spending more on things
suchascarsandluxuryproductsandhol-
idays,so more consumerism might hap-
pen. Second, more people will consider
new-energy vehicles, as there is already
a lot of talk about pollution getting visi-
bly reduced during the lockdown.”
Brand expert Bijoor calls the Covid-
19 as a definitive point that will change
habits.“The why-own-when-you-can-
borrow movement is going to deepen.
Consumers are going to think this from
two perspectives. One is from the per-
spective of fatalism, and the other from
the perspective of individualism and the
variety-seeking habit. Both diametri-
term impact the portfolio and commu- cally-opposed movementswill collide to
nication strategy of PV OEMs.” create less ownership of cars as a habit
whose time has come.”
Economic sentiment
According to the Confederation of Impact on Chinese cars
Indian Industry’s CEO snap poll‘Impact Next year China’s Great Wall Motor
of Lockdown due to Covid-19 Pandemic’ (GWM) will launch its first car in India,
released on April 3 (bit.ly/39FLANv), and the British MG Motor (it’s owned by
about 52% firms foresee job losses, in Chinese SAIC Motor) is perceived as Chi-
their respective sectors, resulting from nese by some customers. On the impact
the impact of Covid-19outbreak andthe on Chinese brands,Vangaal says it’s too
ensuing lockdown,and/orsalarycuts.In early to comment,but“some carmakers
addition, CARE Ratings has noted that, may face more challenges than others.”
with the implementation of BS6, new Hardeep Singh Brar, director, Mar-
safety norms and higher insurance, the keting & Sales for the Indian subsidiary
cost of ownership of newPVs is expected ofGWM,doesn’tforeseenegativeimpact
to increase by 12-15%. on Chinese cars. Indian customers, he
This dual-impact means that some says, see ‘value’ in a product.“Today, the
PV model downgrades may happen.“In qualitylevel and the cost atwhich China
an upbeat economic environment, a is able to provide a product,there are few
buyer who could afford, say, the i10, alternatives around.If the product qual-
could have upgraded to the i20 instead, ity is good and the price is right, be it a
or may buy the highervariant of the i10. smartphone or a car, the customer will
But now there may be a preference pay for that,”he adds.
towards low-endvariants,if newbuying Bijoor, however, believes that China
indeed does happen,”says Mukhtyar. needs brand management inputs “des-
“In addition, people may start look- perately,”asdoeseveryChinesecompany
ing at cars as a service,on a subscription that aspires to grab market share and
basis, maybe for six months or one year, mindshare in India.“Chinese brands (in
or leasing options,” he says. However, as general) need to invest in image man-
of now,it’s tough to take a call how deep agement. China itself needs to manage
the impact on new-car purchase will be. its image better,”he says.
not out of the question.This may lead to
lower value for a used car when the con-
sumer decides to sell post the deadline.
The next few days are expected to be
flooded with BS4 and older cars. This
leads to a high supply of pre-owned cars
and a low demand for them in major
Indiancities.But thiswill alsoopengates
for used car buyers in smaller towns,
where affordability is a major factor and
anewsegmentofcarbuyersisemerging.
Be itbuyingorselling,the dealers,the
usedcarcompanies,carfurbishers areall
set to make some serious money.
5-10% every year, depending on the
make and model. In the case of BS4 to The author is co-founder & CMO,
BS6 shift, extra 10-15% depreciation is Cars24.Views are personal
● TELEVISION
Thinking out
of the box
How television
broadcasters are dealing
with content shortfall
VENKATA SUSMITA BISWAS
THETELEVISION BROADCASTindustryis
takingafewcreativelibertiestodealwiththe
lackoffreshcontentinthewakeofthecoro-
navirus outbreak.While some broadcasters
are developing theme-based edits of exist-
ingcontent,andbringingbackiconicshows,
others are resorting to reruns of popular
shows, and testing the viability of using
video conferencing tools to create content.
The Indian film and television industry
had decided to halt shoots as a preventive
measure until March 31. But the 21-day
national lockdown has imposed a longer
moratoriumontheindustry.Withacontent
repository that could last only four weeks,
mostbroadcastershadrunoutoffreshcon-
tent byMarch end.
Riding on nostalgia
Bringingbackoldshowsseemstobebroad-
casters’ best bet. Public broadcaster Door-
darshan led the trend by bringing back
iconic shows such as Ramayan, Circus,
Byomkesh Bakshi and Shaktimaan, among
others.Viacom18isairingrerunsofitsmar-
queenon-fictionshowBiggBoss(Season13)
at 10 pm every day on Colors. Zee TV is
replacing its prime time shows Kumkum
BhagyaandKundaliBhagyawithwebseries
suchasKarrleTuBhiMohabbat,Baarishand
Kehne Ko Humsafar Hain,which were first
streamed onALTBalaji.
Prathyusha Agarwal, chief consumer
officer, Zee Entertainment Enterprises,
says, “We will
Indian TV
also be creating
programming is
fresh edits of
dominated by
existing shows.
For instance, for scripted serials and
&TV, we are non-fiction shows
developing edit- that require a large
based, long set-up, crew and
episodes of equipment
shows such as Ek
Mahanayak – Dr
BR Ambedkar and Happu Ki Ultan Paltan.”
The broadcasteris expected to tap into the
originals libraryof its OTTplatform,Zee5.
Additionally, broadcasters have turned
some of theirchannels into free-to-airfora
period of two months on all DTH and cable
networks. Sony Pal, Star Utsav, Zee Anmol
andColorsRishteyareamongthosethatare
nowavailable forfree.
‘Home’productions
The lockdown has led to a significant
increaseintelevisionviewership,butmostly
on news, movies and kids channels. The
averagetimespentonGECsdroppedby5%
in the week of March 14-21, as per the
BroadcastAudienceResearchCouncilIndia,
while news and kids channels have seen an
increase of 17% and 11%, respectively, in
average time spent.
In the US, where talk shows are
immensely popular, broadcasters have
begun creating broadcast-level content
from the homes of the showhosts.
“Whilewe are exploring all kinds of best
practices from our counterparts in other
markets, replicating the broadcast-from-
homemodelwillbetoughinascriptedcon-
tent heavy market like India,”says Deepak
Dhar,founderandCEO,BanijayAsia.
Indian programming is dominated by
scripted serials and non-fiction reality TV
shows — both of which need a large set-up,
crewand equipment.
ContentcreatorsinIndiaaregettingcre-
ative though.Cricketer Kevin Pietersen has
beenhostinginterviewswithcelebritiesvia
Instagram Live,while film reviewer Anu-
pama Chopra is using Zoom video confer-
encingtointerviewBollywoodcelebritiesfor
YouTube channel Film Companion.
These formats are inspiring Indian tele-
visionproducers.Industrywatcherssaythat
sports channels are exploring options to
replicate interviews via video conferencing
andremote content creationformats.Dhar
says that while production has come to a
halt, teams are working on developing
shows during this time.“This situation has
shown us that we need to start evolving in
thewaywe produceourcontent,” he says.
Ashish Pherwani, partner, media and
entertainment leader, EY India, expects
movies made on small budgets or movie
producers struggling with cash flows to
turntoearlypremieresontelevision.These
could also help broadcasters who are con-
tent hungryright now.