THE ECONOMIC TIMES
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Active
66,330 (+2,706)
CORONA
METER Deaths
3,583 (+148 )
Cured
TOTAL CASES 118,447 48,534 (+3,234)
IN INDIA (+6,088) Source: MoHFW, 8am
FEARS UNFOUNDED,
YOUR PAPER IS SAFE
CENTRAL BANK PUTS REVIVAL AHEAD OF INFLATION
Repo rate cut by 40 bps to a record low of 4%; repayment moratorium extended till August 31
Judging that the risks to
growth are acute, while
the risks to inflation are
likely to be short-lived, the
MPC believes it is essential now
to instil confidence and ease
financial conditions further
SHAKTIKANTA DAS RBI GOVERNOR
ET MAGAZINE
ON SUNDAY
ET WEALTH
ON MONDAY
THE ECONOMIC TIMES
WHY NPS IS
GOOD FOR YOU
EPFO, ESIC DATA
Job Enrolments
Plummet in March
Payroll numbers, tracked by
additions to subscribers under
EPFO, dropped nearly 44% in
March against February. Similarly, payrolls
tracked by increases to the safety net for
blue-collar workers, Employee State Insur-
ance Corporation, fell by 30.6% in the same
month versus February. 7
New Items in Cart: Guitars and Robot Vacuums
Buying Patterns Change Labour-saving household devices and products that kill boredom hot sellers
Writankar.Mukherjee
@timesgroup.com
Kolkata: Middle class and upper
middle class Indians are not only
buying less than before, they are
also buying very different items
— guitars and weights, e-readers
and children’s books, and robotic
vacuum cleaners and super mops
are filling up online shopping
carts.
Buying patterns are largely
getting dictated by life’s travails
under lockdown, major online
marketplaces and retail chains say.
Denied the comfort of domestic
help doing the cleaning, and/or
Case Count
1m If cases had
100k doubled every...
10k
1k
March 29
122,656: PTI estimate of Covid-19 cases as of 9:20pm
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RBI Cuts Rates Again, Says
Economy may Contract
Our Bureau
Mumbai: The Reserve Bank of In-
dia (RBI) cut interest rates for the
second time in less than two
months to a record low and exten-
ded the payment standstill on lo-
ans by another three months to
help businesses crippled by the
lockdown. But its forecast that the
economy will contract, the first
likely annual shrinkage since
1979, and a potential rise in delayed
payments could test the ability of
banks to manage bad loans that
RBI’S MOVES
REPO RATE
CUT BY 40 BPS
%
TO 4%
3-month extension
of moratorium
Interest on working
capital loans can
be converted into
funded term loans
RIL TO RAISE COMBINED ` 78,500 CRORE WITH FIFTH DEAL
Jio Platforms Bags `11kcr from KKR
Private equity
fund to acquire 2.32%
stake in its largest
investment in Asia
Our Bureau
Mumbai: Jio Platforms is set to ra-
ise `11,367 crore by selling a 2.32%
stake to private equity firm KKR,
making it the fifth investment in
the Reliance Industries Ltd’s digi-
tal business unit in a month.
“This transaction values Jio
Platforms at an equity value of
`4.91 lakh crore and an enterprise
value of `5.16 lakh crore. This is
KKR’s largest investment in Asia
and will translate into a 2.32%
After FDI Curbs, India Plans Stricter
Check on FPIs from China and HK
Under Watch
16 registered FPIs
from China, 111
from Hong Kong
Details of FPIs’
ultimate bene-
ficial owners
being sought
EXTRA SCRUTINY,
NEW BODY TO APPROVE
CHINESE FPI MULLED
Barriers to
check any
investor from
these places
gaining control
of any Indian
company
the cook doing lunches and din-
ners, the relatively better off are
buying more labour-saving house-
hold devices that get the job done.
Equally in demand are products
MUMBAI | 10 PAGES | *.` 4.00 OR .` 7.00 ALONG WITH THE TIMES OF INDIA
States With Most Cases
Total Active
Week M’rashtra
Tamil Nadu
41,642
13,967
9 days Gujarat 12,905 Share
In Total
May 22 Delhi 11,659 73.94%
Rajasthan 6,227
may balloon in December quarter.
Easier norms on the classifica-
tion of defaulters as bad loans, the
resolution of stressed accounts,
and holding back of reporting on
defaulters to credit information
companies will continue until Au-
gust 31. Accumulated interest on
working capital loans could be
converted into interest-funded
term loans and paid by March 31.
At the second off-cycle Monetary
Policy Committee (MPC) meeting,
the repo rate, at which RBI lends to
banks, was reduced by 40 basis po-
ints (bps) to 4%, the lowest ever, by
BLEAK ECONOMIC OUTLOOK
BL
GDP growth in FY21 Contraction of 57.5%
estimated to be in in imports of capital
negative territory goods in April
High frequency Fall of 91% in
indicators signal finished steel
demand collapse consumption in April
Production of 25% shrinkage in
capital goods declined cement production
36% in March in March
equity stake in Jio Platforms on a
fully diluted basis,” RIL said in a
release on Friday.
ET had reported KKR’s possible
investment in Jio Platforms on
May 21. Shares of RIL ended 0.6%
lower at `1,431.60 on the BSE, in line
with the Sensex, which fell by 0.8%.
With the latest deal, Jio Platforms
will get a combi-
‘JIO’S DIGITAL ned `78,562 crore
from five investors
SERVICES
IMPRESSIVE’ — Facebook, pri-
PAGE 4 vate equity funds
Silver Lake, Vista
Equity Partners, General Atlantic
and now KKR — for 17.12% stake.
Analysts say RIL may dilute its sta-
ke further, keeping minority inves-
tors at 20-25% and, in the process,
try and achieve its zero-net debt tar-
get ahead of its March 2021target.
Stake Sales to Help Co Pare Debt6
Stringent collection of
data on cards as govt
plugs loopholes
Our Bureau
New Delhi: India is considering
additional checks on foreign
portfolio investments from Chi-
na and Hong Kong after making
prior government clearance
mandatory for any foreign direct
investment (FDI) from seven co-
untries it shares land borders
with, including China.
The finance ministry is in talks
with the commerce and industry
ministry, Sebi and RBI on the
proposed framework after con-
cerns about such inflows were
raised when China's central
bank increased its stake in Hou-
that keep locked-in children as
well as adults engaged.
Amazon India’s head of seller
services Gopal Pillai tweeted
Thursday night children’s books,
ANIRBAN BORA
5 Worst-Hit Cities
Mumbai 25,500
Delhi
Share
In Total
11,659 51.05%
Ahmedabad 9,449
Source:
Chennai 8,801 covid19india,
state govt
Thane 5,268 websites
To order your favourite newspaper, call 1800 1200 004 toll free or visit subscribe.timesgroup.com. To advertise with us, call 1800 120 5474
a five-to-one vote, with Chetan
Ghate arguing for a 25-bps reduc-
tion. A basis point is 0.01 percenta-
ge point. All other rates get adjus-
ted accordingly. Also, the repay-
ment moratorium will now be in
place until August 31.
Unlike the March meeting, the
MPC provided its growth and in-
flation outlook despite difficulties
in computing data. The economy
will shrink as business activity re-
mains disloca-
IS THIS ALL ted and inflation
RBI CAN DO? could remain
SEE EDIT elevated, altho-
ugh prices may
trend lower by the fiscal fourth qu-
arter. The farm sector is expected
to help offset likely shrinkage in
manufacturing output, which
hinges on restoring the dislocated
supply chain.
“GDP growth in 2020-21 is esti-
mated to remain in negative terri-
tory, with some pick-up in growth
impulses from H2: 2020-21 on-
wards,” the RBI said, without put-
ting a number to its expectation.
Selloff in Financial Assets6
On Fundraising Spree
KKR to make the
investment from its Asia
private equity and
growth technology funds
JIO PLATFORMS
Comprises RIL’s
digital properties
and investments
such as Jio Cinema,
Jio Saavn and Haaptik
RIL may dilute its stake
further, keeping minority
investors at 20-25%
Also in talks with Saudi
sovereign fund PIF, UAE’s
Mubadala for stake sale
sing Development Finance Corp
(HDFC). The People’s Bank of
China had raised it to more than
1% from about 0.8%, requiring a
declaration by the Indian mort-
gage lender to stock exchanges.
“The Department of Economic
Affairs is working on the FPI is-
sue. It is not fina-
lised yet,” a go-
vernment offici-
A dedicated
cell could al told ET.
be set up FPIs from Chi-
na and Hong
to check
new FPI
registrations
Kong may have
to undergo more
from these
regions
stringent know
your customer
(KYC) norms at
the time of registration and se-
parate mechanisms could be put
in place to ensure prior regulato-
ry or government clearance for
investments in listed entities.
Collection of Details Underway10
women’s sleepwear and guitars
are selling briskly. And some of the
highest spikes are for products like
robotic vacuum cleaners and
dishwashers.
Similar buying patterns are
replicated across other retail
platforms – Flipkart, and leading
chains such as Future Group,
Reliance Retail and Vijay Sales.
Life under lockdown has led to
specific demand surges that have
produced supply shortages. Dish-
washers and super mops weren’t
big sellers when domestic help was
easily available. Now these pro-
ducts are in short supply.
New Normal4
Samples Tested
GLOBAL COUNT
Total* 2.72 Million
In Past 24 Positive
Hours*
103,514 4.3%
Cases^
Source: ICMR *As of 9am,
May 22 ^3-day average
Reserve Bank Rolls
Over Sidbi’s Credit
Facility to MSMEs
Small businesses received
fresh credit support from
the RBI in Friday’s un-
scheduled monetary policy review.
Sidbi’s credit facility to the MSME
sector was rolled over, while Exim
Bank got a fresh line of credit. 6
States can Withdraw
from Consolidated
Fund for Redemptions
The Reserve Bank of
India has permitted the
states to withdraw from
the consolidated sinking fund
(CSF) to meet their redemption.
This could cover 45% of their
payments for this fiscal. 6
THE ECONOMIC TIMES
WWW.ECONOMICTIMES.COM
ET had reported in its
May 21 edition that KKR
could invest in Jio Platforms
VIKRAM OBEROI
MD, OBEROI GROUP
‘Lack of Govt
Support for
Hotel Industry
Disappointing’
Anumeha.Chaturvedi
@timesgroup.com
New Delhi: Vikram Oberoi, MD of
the Oberoi Group, said he’s disap-
pointed at the lack of government
support for the sector and called for
the restarting of hotel bookings.
The luxury hotel chain has seen re-
venue plummet because of Co-
vid-19 and the ensuing lockdown.
“We have seen an erosion of re-
venue that is unprecedented,” he
said in an interview. “We have not
seen this in any crisis before and
certainly not in my lifetime. But
we see part of the picture. I believe
the government would have appli-
ed due care in arriving at the deci-
sions that they did to help various
sections. Unfortunately, we we-
ren’t part of that. Something may
still be done. Who knows? Covid is
not going away tomorrow.”
He said the Hotel Association of
India (HAI) and other groupings
had sought aid from the govern-
ment at various levels.
Safety Standards in Place10
SATURDAY, 23 MAY 2020
ON Saturday
TOTAL CASES
5.24 Million
DEATHS
China may Impose New
335,954 Security Law in HK
Recovered AROUND THE WORLD 9
2.12 Million
FACTORIES START ROLLING AGAIN
A Third of NSE
Manufacturing
Cos Back at Work
Firms say demand remains weak and
disruptions continue to plague operations
410 of 1,300 Non-services firms (NSE
have resumed ops data)
DISRUPTION PICKUP IN ACTIVITY
Auto cos have Cement Power demand down
restarted makers 14% in May, from
production, operating at 27% in mid-April
but 50% capacity
E-way bill generation
registration as dealers down 60% in May,
of vehicle unwilling to
from 80% in April
down 90% as stock up due
Cement sales in rural
dealers shut to uncertainty
areas back at 65-70%
Domestic steel price has of usual
corrected by `1,000/tonne
ness partially between April 20
and May 22. The Centre had al-
lowed businesses to restart ope-
rations gradually, by partially
lifting restrictions from April
20. Movement of goods traffic
had also been eased.
Corporate executives said the-
ir teams were monitoring mar-
ket demand as they learn to live
REVIVAL AF TER LOCKDOWN with the new normal. “From
the lessons le-
Rajesh.Mascarenhas arnt so far, we
@timesgroup.com Among those see an opportu-
Mumbai: About a third of non-
that have
restarted
nity to improve
our operating
service, manufacturing compa- factories are capabilities
nies listed on the NSE have re-
sumed operations partially or
fully since mid-April, but de-
mand is weak and disruptions
continue to plague operations.
ITC, Maruti
Suzuki, Hero
MotoCorp,
Asian Paints,
Tata Motors,
and review our
growth strate-
gy,” said a spo-
kesperson for
Tata Chemi-
Data collated from filings by
companies listed on the NSE
Bosch & Ashok cals. “We were
Leyland able to ensure
show that 410 out of 1,300 non-
service companies such as ITC,
uninterrupted
despatch of products to the
Maruti Suzuki, Hero Moto-
Corp, Asian Paints, Tata Mo-
markets through railways.”
Cigarettes-to-hotels-to-FMCG
tors, Ashok Leyland, Whirlpool
India, Bosch, Welspun and Tata
major ITC became the latest lar-
ge company to announce restart
Chemicals have resumed ope- of factories making non-essen-
rations. Most cement, tyre, che- tials, with limited workforce.
micals and pharmaceutical
companies also resumed busi- Pickup in Economic Activity10
‘STIMULUS PACKAGE WON’T HELP IN SHORT TERM’
GDP to Shrink in FY21: Moody’s
The Indian economy will contract in FY21, Moody’s In-
vestors Service said, adding that the Covid-19 relief pack-
age is unlikely to shore up growth in the short term.7
PERSONAL GUARANTEE BINDING: UK COURT
Anil Ambani Asked
to Pay .̀ 5,448 Cr
to 3 Chinese Banks
Ambani seeking legal Fresh Trouble
advice after ordered Besides $717 m
that Anil Ambani
to pay within 21 days needs to pay, UK
court also imposes
Our Bureau legal cost of
750,000 pounds
Mumbai: A UK court has orde-
red Reliance Group chairman
Anil Ambani to pay $717 million
Lenders can go after Ambani’s
assets if amount is not paid
Ambani says UK court order
(.̀ 5,448 crore) to three Chinese
banks within 21 days, after ru-
ling that a personal guarantee
can’t be enforced in India
UK order won’t have
which the Indian businessman any bearing on ope-
had disputed was binding.
rations of Reliance
A spokesperson for Anil Am- Infrastructure, Reliance
bani said he was seeking legal
Power, Reliance Capital
advice on the future course of
action. “As far as the judgment Ambani says once RCom’s
of the UK court is concerned, resolution happens, amount
the question of any enforce- ordered by UK court to be
ment in India does not arise in reduced by 50%
the near future,” the spokesper-
son said in a statement.
The UK order will also not have which could include “going after
any bearing on the operations of his personal assets and wealth”.
other Reliance Group compani- Justice Nigel Teare of the
es — Reliance Infrastructure, Commercial Division of the
Reliance Power and Reliance High Court of England and Wa-
Capital, the statement said. les in London in his order earli-
Legal experts, however, said if er this week also asked Ambani
Ambani didn’t pay in the next 21 to pay another 750,000 pounds
days, the lenders would have the as court costs.
option to “pursue all available op-
tions for enforcement of order”, ‘Amount to Fall Post-Resolution’10
NEW GUIDELINES COME WITH CAVEATS
ICMR Clears HCQ for Wider Usage
The ICMR has recommended a wider use of hydroxychlo-
roquine (HCQ) in the battle against Covid-19, brushing
aside ethical concerns, reports Teena Thacker.5
 2 Pure Politics
The Economic Times, Mumbai, Saturday, 23 May 2020
Q&A HARSH VARDHAN
UNION HEALTH MINISTER
‘Don’t be Scared...
Covid-19 is not that
Virulent in India’
Wear a mask, wash
hands frequently,
maintain a distance of
two yards: Minister
Nidhi.Sharma@timesgroup.com
New Delhi: Health minister Harsh
Vardhan has said that there was no
need to be scared of the novel corona
virus even if one was infected,
pointing to the high recovery rate.
“There is no need to be scared. The
government has been telling people
just this for the last few weeks. All
you need to do is wear a mask, wash
your hands frequently
maintain a distance of two yards,”
and
Vardhan told ET as he took over as
chairman of the World Health
Organisation’s executive board.
When asked about the increasing
numbers in India, he said “as we
open up economic activity, we
expect more cases to come up. But
the person who gets infected need
not get scared. You have already
seen the virulence of the disease —
we have had over 3,500 deaths in a
country of 135 crore people... It is not
that virulent.” The world has been
living with several viruses for
hundreds of years. “So far, only
small pox and polio viruses have
been eradicated. The behaviour of
the virus changes. It prefers a
certain climate and terrain. This is a
very new virus. We will learn to live
with this too,” Vardhan said.
The health minister, who showcased
India’s Covid-19 management and
Modi government’s universal health
insurance scheme for the poor —
Ayushman Bharat — as he took over
as WHO’s executive board chairman,
expressed confidence that things
were settling down.
“There was a time when we had
about 8-10 lakh people under
community surveillance. But now
things are settling down. We have
followed the best possible strategy.
This is why our number of deaths is
one of the lowest in the world,” the
health minister said.
He laid out the future strategy
saying testing would be the key to
understand the spread of
infection. Expressing confidence
in the technological innovations
and the new Make-in-India
strategy being employed by the
government. “Our scientist
community, institutes of eminence
Poliloquy R PRASAD
OPPN PARTIES HAVE TARGETED BIHAR GOVT FOR ‘MISMANAGEMENT’ OF THESE CENTRES
Kumar Monitors Isolation
Centres at Block Level
Sanjay.Singh2@timesgroup.com
New Delhi: Bihar CM Nitish Ku-
mar on Friday started personally
monitoring arrangements at block-
level Covid-19 quarantine centres
in various districts, in an apparent
attempt to wrest back the political
initiative at a time when opposition
parties have targeted the state go-
vernment for alleged mismanage-
ment of these centres. In the first
round of interaction with migrant
workers through videoconferen-
cing (VC), Kumar reached out to at
least 20 block-level quarantine
centres located in 10 districts. He
collected feedback on problems
they face, if any, at the centres.
The 10 districts — Purnea, East
Champaran, West Chamaparan, Be-
gusarai, Gaya, Rohtas, Madhubani,
Darbhanga, Sitamarhi and Sheohar
— were tasked with making
VC arrangements at two
Rajasthan to Test 10% Migrants
Aman.Sharma@timesgroup.com
New Delhi: The Rajasthan govern-
ment plans to test 10% of all mig-
rants, giving priority to those re-
turning from Maharashtra and
Gujarat. Samples will be collected
from migrants in a village or ward,
VARANI SAHU
LEARN TO LIVE
So far, only small pox and
polio viruses have been
eradicated. The beha-
viour of the virus chang-
es. It prefers a certain cli-
mate and terrain. This is a
very new virus. We will
learn to live with this too
and the government are tirelessly
working towards innovations like
cheaper and newer testing kits and
machines. In just a matter of weeks
Indian Council of Medical
Research has developed ELISA test
for Covid-19, which would now be
used in 69 districts to see if there is
any community transmission. A
vaccine would be the final cure but
till then we are fighting the virus
with all our might,” the health
minister said. He expressed
concern on Mumbai’s increasing
Covid-19 cases but said the Centre
was actively helping the state.
Vardhan denied there was any
problem of ICU beds or beds with
oxygen support in Maharashtra.
“Small issues were pointed out
earlier and these were sorted out.
There is no such problem,” the
health minister said.
No. of Litigants in SC Lawyer
Chambers may be Capped
Samanwaya.Rautray
@timesgroup.com
New Delhi: Entry of litigants into la-
wyer chambers in the Supreme Court
may be severely curtailed when they
are reopened to ward off spread of the
Covid-19 pandemic. In a series of in-
structions, the SC registry said only
asymptomatic lawyers and staff would
be allowed in the chambers initially.
block-level quarantine centres in
their respective areas. Kumar is ex-
pected to continue the exercise in all
38 districts of the state.
“During his interaction with some
migrants, the chief minister asked
them about their skills and the citi-
es they have worked in. He also as-
ked whether they would stay in Bi-
har in case his government offers
them jobs here. Besides, he collec-
ted feedback about meals at the qua-
ran- tine centres,” a sour-
ce in Purnea told
ET over phone.
Banmakhi
and Srina-
gar blocks
in the dis-
trict were
selected for
the exerci-
se. Accor-
ding to a so-
urce in East
Cha-
apart from testing all migrants
who have influenza-like symp-
toms. ET has seen a copy of the sta-
te government order.
Pool sampling from a block or
ward will be conducted at labs. “A
pool can be made of people coming
from Maharashtra and separate
pool for people coming back from
SAYS GOVERNMENT
India Able
to Avert
1.4 m to
2.9 m Cases
Our Political Bureau
New Delhi: India has been ab-
le to avert 1.4 million to 2.9 mil-
lion Covid-19 cases because of
successive lockdowns, the go-
vernment said on Friday.
Presenting five mathemati-
cal models, the Centre said ti-
mely lockdowns also ensured
India averted 37,000 to 78,000
deaths. The government fiel-
ded Niti Aayog member and
empowered group 1 chairman
VK Paul and ministry of sta-
tistics and programme imple-
mentation (MoSPI) secretary
Praveen Srivastava to justify
successive lockdowns.
“The growth rate of Covid-19
cases has witnessed a steady fall
from April 3, when lockdown
was able to put a
brake on the spe-
ed of growth.
The number of
cases today wo-
uld have been
‘Growth much higher had
rate of the lockdown not
Covid-19 been implemen-
cases has
ted,” Paul said.
The government
witnessed
presented two mat-
a steady hematical models
fall from by independent ex-
April 3’ perts and one each
by Boston Consulting Group
(BCG), Public Health Foundation
of India (PHFI) and MoSPI. All fi-
ve models showed number of ca-
ses averted in lakhs and deaths in
thousands. According to the
BCG model, the lockdown has
saved between 120,000 and
210,000 lives, and averted 3.6-7
million positive cases of Co-
vid-19, Srivastava said. PHFI has
predicted that 78,000 deaths have
been averted. Two studies by in-
dependent experts pegged the
cases averted between 1.59 mil-
lion and 2.3 million and deaths
between 51,000 and 68,000.
Lawyers will have undergo thermal
screening and wear masks. Those who
are not cleared by the scanners or do
not wear masks will not be allowed.
The chambers will be open from 10 am
to 4 pm, Monday to Friday, except holi-
days, and till 2 pm on Saturdays. They
will be closed for cleaning and sanitisa-
tion on Sundays.
The circular advised single-point ent-
ry equipped with hand sanitisers and
curb on air conditioners.
maparan district, Kumar was shown
basic arrangements like kitchens
and toilets at quarantine centres. On
Friday, the Bihar government also
decided to change its earlier strategy
of keeping all migrants from other
states at quarantine centres.
As per the new plan, migrants co-
ming from cities — Surat and Ahma-
dabad (Gujarat), Mumbai and Pune
(Maharashtra), Delhi-NCR, Kolkata
(West Bengal) and Bengaluru (Kar-
nataka) would be kept at quarantine
centres after medical screening.
“Those migrant workers coming
from rest of the places would be ho-
me-quarantined after medical scree-
ning,” a source said on the basis of
the government’s new order.
“The idea is to undertake the mas-
sive exercise of door-to-door scree-
ning of those migrants who are allo-
wed to choose home quarantine.
The administration will be able to
identify if any migrant has symp-
toms of Covid-19,” a source added.
other states,” the order said.
The state has received nearly 6.75
lakh migrants, including 2.04 lakh
from Maharashtra and 2.81 lakh from
Gujarat, labour minister Tika Ram
Jully said. Total positive cases in the
state was 6,377 on Friday of which 2,700
were active. Rajasthan expects 12.27
lakh migrants to return to the state.
PM Announces `1,000 cr Aid for
Bengal, `500 cr for Odisha
MODI MAKES AERIAL SURVEY; HOLDS REVIEW MEETINGS WITH CMs MAMATA BANERJEE, NAVEEN PATNAIK
ANI
Our Political Bureau
New Delhi | Bhubaneswar: Pri-
me Minister Narendra Modi has an-
nounced `1,000 crore assistance for
West Bengal, which has been devas-
tated by Cyclone Amphan. He said
an inter-ministerial team would as-
sess the damage, based on which
further assistance would be given.
PM also announced an advance assi-
stance of `500 crore for Odisha. “Due
to the well-established processes in
Odisha, many lives were saved. I
congratulate the people and govern-
ment of Odisha,” the PM said.
Modi made an aerial survey of
areas devastated by Amphan on
OPPN SEEKS BIGGER, ‘REAL STIMULUS’ PACKAGE, DBT FOR POOR, HELP FOR MIGRANTS
Centre Usurping Federal
Principles: 22 Oppn Parties
Gandhis say lockdown
strategy failed but
statement tempers
stand taking views
of some CMs
Our Political Bureau
New Delhi: Leaders of 22 opposi-
tion parties, including three CMs, on
Friday rejected the Centre’s econo-
mic package, terming it as grossly in-
adequate and demanded the Centre
announce a comprehensive ‘real sti-
mulus’ package. Their joint declara-
tion accused the Centre of unilate-
rally usurping federal principles in
tackling Covid-19 and lockdown and
demanded direct cash transfer and
distribution of free grain to the poor
besides sector-specific initiatives.
They also demanded the Centre pre-
sent a clear exit strategy, consult sta-
tes on resumption of flights and pro-
vide enhanced financial support to
states. They called for restoring func-
tioning of “parliamentary oversight
and parliamentary committees” and
rejected the contentious labour laws.
While Sonia Gandhi’s and Rahul
Gandhi’s addresses said the Centre’s
strategy to fight Covid-19, including
lockdown, were “complete failure”,
and referred to rising infection as
proof, the joint statement of parties
avoided such conclusions. Apparent-
ly, some CMs, especially Udhhav
Thackeray, sensitive to challenging
administrative tasks was appreciati-
ve of the Centre’s cooperation to Ma-
harashtra’s fight against Covid-19.
He said the “next 15 days will be cruci-
al” on how Maharashtra emerges out
of the pandemic and pointed out that
wherever non-BJP parties are in po-
TELANGANA HC STRIKES DOWN STATE GOVT RULE, WHICH MADE IT MANDATORY TO HAVE COVID-19 TESTS ONLY IN GOVT HOSPITALS
‘There is Pandemic But No Formal Emergency, Hence
Fundamental Rights Can’t be Taken Away Arbitrarily’
Our Political Bureau
New Delhi: Though there is a pan-
demic, no formal emergency has
been declared and hence funda-
mental rights of citizens cannot be
taken away arbitrarily and unrea-
sonably, the Telangana High Court
has ruled while striking down a
state government rule, which had
made it mandatory for all to have
Covid-19 tests only in government
hospitals and not the private ones.
The state government had on
April 11, 2020, permitted only go-
vernment hospitals to conduct di-
agnostic tests and admit Covid pa-
Week’s a Long Time
Friday and held review meetings
with chief ministers Mamata Ba-
nerjee and Naveen Patnaik. Ex-
pressing solidarity with the peo-
ple of West Bengal and grief to fa-
milies who lost their kin, Modi
announced an ex-gratia payment
of ` 2 lakh to the next of the kin of
the deceased and `50,000 to those
who were seriously injured. “I as-
sure the people of the state that
the Centre will work closely with
the state government at this diffi-
cult time and extend all possible
assistance for restoration and re-
building of the infrastructure in
the affected areas,” he said.
“I have done an aerial survey
wer, they face BJP’s protest and criti-
cism, it is learnt. Mamata Banerjee is
also learnt to have complained that
the Centre was non-cooperative with
Bengal sometimes, it is learnt.
The joint statement said the Cent-
re should “present a clear and mea-
ningful economic strategy focused
on revival and poverty alleviation
instead of propaganda. The `20 lakh
crore package and its contents mis-
lead the people of India. We demand
that government present a revised
and comprehensive package...”
Other demands included “direct
cash transfer of `7,500 per month to
all families outside the income-tax
bracket for six months, with `10,000
immediately and balance in five equ-
al instalments in the remaining five
months, free distribution of 10 kg gra-
COMMON CALL
Parties call
for restoring
functioning
of ‘parliamentary over-
sight, parliamentary
committees’, reject
contentious labour laws
in to all needy individuals for next six
months, increase in the number of
MGNREGA work days to 200 and ne-
cessary budgetary support”. They al-
so sought free transportation of mig-
rant workers to their native places,
immediate arrangements to rescue
overseas Indians, provide accurate
and relevant information on Covid-19
infections and goalposts vis-à-vis tes-
ting, infrastructure and containing
spread. “Reverse all unilateral policy
decisions, particularly the annul-
ment of labour laws. Procure imme-
tients for isolation and treatment
to the exclusion of private hospi-
tals and diagnostic centres. This, a
PIL petitioner argued, was arbitra-
ry, illegal and without power. The
high court agreed with him.
“Admittedly, no emergency has been
declared by the government under Ar-
ticle 356 of the Constitution, though
there is a pandemic situation undoub-
tedly,” the court said, rejecting the ad-
vocate general’s argument that there
was a state of emergency in view of
the pandemic and that such emergen-
cy justified the state action.
The state government had also accu-
sed the Hyderabad resident of being a
proxy for private hospitals who stood
ET takes a look at events that shaped national
and state politics over the past seven days
CENTRAL TEAM TO SURVEY
Ateam from
the Centre
will do the
survey and we will to-
gether make a scheme
for rehabilitation, says
Narendra Modi
along with the chief minister and
the governor of West Bengal. We
have decided that a detailed sur-
diately rabi harvest at the MSP and
provide assistance...to reach the mar-
ket... Provide seeds, fertilisers and
other inputs to farmers to help prepa-
re for the kharif crop,” the opposition
demanded. While non-Congress CMs
such as Thackeray, Banerjee and
Hemant Soren lent institutional we-
ight to the gathering, some felt a chan-
ce was lost to convert the event into a
larger conference of opposition CMs
as Congress CMs were not invited.
In her address, Sonia rejected as “a
cruel joke” the recent package anno-
unced by the government. “The initi-
al optimism of the PM that the war
against the virus would conclude in
21 days has turned out to be mispla-
ced... The government was uncertain
about the criteria for lockdowns nor
does it have an exit strategy...”
Sonia said: “The government has
also abandoned any pretense of be-
ing a democratic government. All
power is now concentrated in one of-
fice, the PMO... There is no indica-
tion either if the two Houses of Par-
liament or the standing committees
will be summoned to meet.” Rahul
said “today the infection is sprea-
ding and we are opening lockdown.
Does this mean that lockdown
didn’t yield the intended results?”
Ahmed Patel, GN Azad, AK Antony,
KC Venugopal, AR Chowdhury and
Mallikarjun Kharge (Congress); Sha-
rad Pawar and Praful Patel (NCP);
Sanjay Raut (Sena); Derek O’Brien
(Trinamool); HD Deve Gowda (JDS),
MK Stalin (DMK); Tejashwi Yadav
and Manoj Jha (RJD); Sitaram Yechu-
ry (CPM); D Raja (CPI); Omar Abdul-
lah (NC); Sharad Yadav (LJD); PK
Kunhalikutty (IUML); JK Mani
(KCM); NK Premachandran (RSP);
Upendra Kushwaha (RLSP); Badrud-
din Ajmal (AUDF); Raju Shetty
(Swabhimani Paksha); KC Thiruma-
valavan (VCK); Jayant Chaudhary
(RLD); JR Manji (HAM); and Kodan-
daram (TJS) also attended the meet.
SAYS COURT
It can’t be ar-
gued that
anything can
be done by the state:
Telangana High Court
to lose their business from Covid tests
but the court rejected all such pleas.
“We are unable to agree,” Justices MS
Ramachandra Rao and K Lakshman
said in a recent judgement, citing Jus-
tice HR Khanna’s stirring dissent in
ANIRBAN BORA
PTI
vey has to be done as soon as pos-
sible. A team from the Centre will
do the survey and we will toget-
her make a scheme for rehabilita-
tion, restoration and reconstruc-
tion. In these times of crisis, we
will support and help Bengal to
stand on its feet again and pro-
gress ahead,” Modi said.
A parallel battle was on against Co-
vid-19 and the cyclone in West Bengal
and measures to fight them were in
conflict. “To fight Covid-19 one has to
remain indoors and maintain social
distancing but to avoid the cyclone
one had to shift to a safe place and va-
cate houses. West Bengal had to fight
both the battles at the same time.”
Sonia Perhaps
Regretting Why
India Didn’t Turn
Out to be like her
Native Italy: BJP
Spokesperson
Our Political Bureau
New Delhi: BJP has countered
the Congress-led opposition
charge of laxities in the fight aga-
inst Covid-19 by the Narendra
Modi government, saying Sonia
Gandhi and her party are indul-
ging in “drama and petty, cynical
politics” on the issue.
“The whole world is apprecia-
tive of our handling of Covid-19
crisis and the lockdown strate-
gy in controlling the spread of
the pandemic in India,” BJP
spokesperson and Rajya Sabha
member GVL Narasimha Rao
said. “Sonia
Gandhi is per-
haps regretting
why India didn't
turn out to be like
her native Italy.”
He cited a study
‘It is Sonia by Indian Statisti-
Gandhi and cal Institute that
her daughter
said India averted
Priyanka
Vadra who about 2 million ca-
have played ses and up to 78,000
deaths by impo-
cruel jokes’
sing the lockdown
at the right time and implemented
it effectively. “It is Sonia Gandhi
and her daughter Priyanka Vadra
who have played cruel jokes and
played cynical politics on migrant
workers. They did nothing for
migrant workers except the mot-
her-daughter duo making grand
announcements,” Rao said.
He accused Sonia Gandhi and
her family of “indulging in
drama and petty politics at a ti-
me of national crisis”.
“Sonia and her family did not-
hing to contribute to nation’s
united fight against the pande-
mic,” he said.
the ADM Jabalpur case.
An emergency of any sort — medical
or war — is not an excuse to trample on
the rights under Article 21 and the co-
urts have the power to see that the state
will act in a fair, just and reasonable
manner even during emergencies, it
said. It can’t be argued that anything
can be done by the state, including ar-
bitrarily restricting the right to health
conferred under Article 21on a citizen,
it said. The court was acting on a PIL
filed by one Ganta Jai Kumar who cla-
imed that he had a fundamental right
to health and could go to any private
hospital for a Covid-19 test if he had
the means to do so and cannot be for-
ced to go to a government hospital.

AMID PRESENCE ALONG PANGONG TSO LAKE AND THREE TRANSGRESSIONS More
heavy vehicles spotted; reports suggest over 500 PLA soldiers at each site
Chinese Bunker in Finger Area,
Galwan Build-up Raise Concern
Manu Pubby & Dipanjan Roy Chaudhury
New Delhi: The possible construction of a
Chinese bunker in the finger area along
Pangong Tso lake and three reported trans-
gressions in the Galwan region have raised
concern as the standoff between troops con-
tinues at the Line of Actual Control (LAC).
The security establishment is also closely
monitoring developments along the Line of
Control with Pakistan and possible links
with the developing situation on the Chine-
se border and Islamabad’s recent moves in
PoK. Persons tracking developments say
that the synchronised incidents can hardly
be treated as a coincidence, with extra vigil
being maintained on all borders to counter
any coordinated move. Sources in the secu-
rity establishment say that the Galwan re-
gion continues to remain tense after addi-
tional heavy vehicles were spotted. It is beli-
eved there are now three transgression po-
ints by PLA troops in the region, including
ones at Patrol Point 14 and near the strategic
Gogra post. Reports coming in suggest that
over 500 Chinese soldiers are present at
each of these spots that are within Indian
territory. The deployment has been counte-
red by the Indian Army that has moved in
additional troops to the area as well.
It is also believed that a new bunker is now
being constructed by the Chinese side in the
finger area along the Pangong Tso lake. The
finger area consists of a series of mountai-
City Cong MLAs Raise Concern About
Mishandling of Covid-19 Crisis by State
Krishna.Kumar@timesgroup.com
Mumbai: Fissures within Maharashtra’s
ruling coalition on the handling of the Co-
vid-19 pandemic were evident on Friday af-
ter leaders of the Congress, a constituent
of the three-party combine, said the health
infrastructure in India’s richest state appe-
ared stretched and was struggling to cope
with the rising number of cases.
“The health infrastructure has not been
able to cope with the number of new cases
coming in,” said Sanjay Nirupam, the for-
mer Mumbai Congress chief. “They are
claiming that they have added news beds in
grounds and other facilities, but it is just
another photo-op as people are still strugg-
ling for beds.”
The Congress leader’s criticism came im-
mediately after Maharashtra decided to re-
quisition the services of private hospitals
to treat Covid-19 patients. The state has the
Bid to Take Control
The finger area consists of a
While Indian troops have
series of mountainous spurs
been patrolling up to
along the Pangong Tso lake
Fingers 5 and 8 for years,
that have been contested by Chinese troops patrol the
both India and China
Now, the Chinese side seems to be con-
structing a bunker between Fingers 3 and 4
to stop Indian access to the rest of the area
Three transgression points by PLA troops
in the region, including ones at Patrol Point
14 and near the strategic Gogra post
The Sino- Pak axis, worried about the Indian efforts to get back PoK and Aksai Chin
region, are working out a plan to tighten their control over these regions as they
are crucial for CPEC and to contain Indian influence in Afghanistan
S D PRADHAN, former deputy national security advisor
nous spurs along the lake that have been
contested by both sides. While Indian tro-
ops have been patrolling up to Fingers 5 and
8 for years, Chinese troops patrol the area
up to Finger 3.In a change, the Chinese side
seems to now be constructing a bunker bet-
ween Fingers 3 and 4, which will be desig-
ned to stop Indian access to the rest of the
area. Chinese troops have also taken posi-
tions on the spurs. This, along with increa-
sed patrolling by Chinese boats, shows an
aggressive stand taken up on the border.
The incident has brought back memories
INADEQUATE INFRA
The health infrast-
ructure has not
been able to cope
with the number
of new cases coming in
SANJAY NIRUPAM,
FORMER MUMBAI CONG CHIEF
highest number of cases in India, with
Mumbai having a disproportionately large
number of patients.
Nirupam said that on an average, he gets
40 calls per day to help arrange hospital
beds in the city. “Getting a bed in the city
during this juncture is simply difficult; ho-
spitals are being overrun by the number of
area up to Finger 3
FILE PHOTO
from the Kargil war, when the Chinese side
used the opportunity to build a 5km-long
track along the Pangong Tso lake to step up
patrolling. The track was completed in re-
cord time after Indian troops were pulled out
to counter the Pakistani incursions. Experts
believe recent incidents of cross-border fi-
ring along the LoC, an upswing in terror at-
tacks in the Valley and the transgressions
along the LAC are linked. All events are ta-
king place in the first summer after India de-
cided to revoke the special status of J&K un-
der Article 370 and divided the state.
cases. I am more worried about what will
happen during the monsoon when there
would be an increase in both Covid and
non-Covid cases.”
His colleague and MLA from Mumbadevi
constituency, Amin Patel, said that the lack
of real-time information on the availability
of vacant beds has aggravated the problem.
“People have been running from one ho-
spital to another. I have seen cases where
people are dying by the time they get beds. I
had told the BMC and the state govern-
ment a month ago to have a dashboard that
gives the latest information about the num-
ber of beds. However, nothing has been do-
ne to date,” said Amin Patel.
Late Thursday, Maharashtra issued an or-
der that seeks to take over 80% of the beds in
private hospitals and nursing homes in the
state. The notification issued on Thursday
night will cover hospitals run by charitable
trusts. The state government has also cap-
ped treatment charges for Covid 19.
VISA, TRAVEL CURBS RELAXED
OCI Card
Holders
Can Return
Our Political Bureau
New Delhi: The Centre has allowed four ca-
tegories of Overseas Citizen of Indian
(OCI) cardholders to return to the country.
Relaxing visa and travel restrictions intro-
duced after the Covid-19 pandemic broke
out, a Union Home Ministry on Friday said
babies born to Indian nationals with OCI
cards, card holders who wish to return due
to family emergencies, couples with per-
manent residence in India, where one spou-
se is an OCI cardholder and the other an In-
dian national and university
students who are OCI card-
holders (not legally minors)
but whose parents are citi-
zens of India and reside here
can return.
Babies born The decision follows sugges-
to Indian tions of the Ministry of Exter-
nationals, nal Affairs, which received se-
card holders veral requests from OCI card
who wish to holders. All incoming and out-
return due going international passeng-
to family er flights were stopped on
emergencies
March 22 as part of lockdown
are some of
the cases restrictions. However, visa-
allowed free travel facility granted to
OCI cardholders was suspen-
ded on March 11. For Vande Bharat mission,
only stranded Indians were allowed to bo-
ard planes while OCI cards were asked to
wait. On Thursday, the government deci-
ded to resume domestic flights from May 25.
Officials said only those OCI card holders
who tested negative for Covid-19 will be al-
lowed to undertake the journey.
Wadhawans’ ED Custody
Extended Till May 27
MUMBAI A special court here on Friday sent DHFL
promoters Kapil and Dheeraj Wadhawan, arrested
in connection with a money laundering probe
against Yes Bank co-founder Rana Kapoor and
others, to further ED custody till May 27. The duo,
arrested earlier this month under provisions of the
Prevention of Money Laundering Act (PMLA), was
produced in court on Friday at the end of their
previous remand. The ED sought further custody of
the Wadhawans, stating the two were not coopera-
ting with the probe, and there were more docu-
ments with which it wanted to confront them. — PTI
Pure Politics
The Economic Times, Mumbai, Saturday, 23 May 2020 *
Concern Over Health of
Police Personnel in
Maharashtra, Gujarat
COVID PREPAREDNESS With no let-up in pandemic,
the two states preparing forces for the long haul
Rashmi Rajput & DP Bhattacharya
Mumbai | Gandhinagar: Head cons-
table Vishnu Chauhan of the Ahmed-
abad Traffic Police, who was posted in
the eastern part of the city that is a Co-
vid-19 hotspot, started feeling unwell
on May 10, with throat ache and fever.
“In spite of repeatedly
telling the doctor at Ah-
medabad Civil Hospital
about my posting and that
I was feeling uneasy, the
doctor said that under the
new guidelines, testing
for corona was not nee-
ded,” Chauhan told ET.
He said he later got a test
done from a private lab,
paying `4,500, and the re-
sult was positive. Chau-
han didn’t get admission
at Sardar Vallabhbhai Patel Hospital
as there were no vacant beds. At the Ci-
vil Hospital, doctors suggested that he
quarantine himself at home.While ti-
mely intervention by his seniors hel-
ped Chauhan get treatment, 32-year-
old Mumbai Police sub inspector
Amol Kulkarni wasn’t that lucky.
On May 13, Kulkarni who had a histo-
ry of high blood pressure, complained
of cold and fever. His swab samples we-
re collected at KEM Hospital, but he
wasn’t admitted to the hospital. Aro-
BMC Allows Home Delivery of
Liquor in Non-containment Zones
Our Political Bureau
Mumbai: The Brihanmumbai Mu-
nicipal Corporation (BMC) on Fri-
day allowed home delivery of liqu-
or in Mumbai, except in contain-
ment zones. But over-the-counter
(OTC) sale of liquor will not be allo-
wed yet, the civic body said.
In an order issued on Friday, BMC
Commissioner Iqbal Singh Chahal
allowed liquor shops to sell alcohol
through e-commerce platforms out-
side containment zones.
3
und 5 am last Saturday, he was found
lying unconscious on the bathroom
floor at home. He was declared brought
dead at the hospital. Chauhan and Kul-
karni are among many policemen and
women who have contracted the infec-
tion while fighting the pandemic in
Maharashtra and Gujarat, two of the
worst hit states. While shortage of per-
sonal protective equip-
ment has made the fight
tougher, police personnel
have also been finding it
arduous to get tested. The
two states, however, are
now putting more focus
on the health of their poli-
ce forces to prepare them
for the long haul.
According to the Maha-
rashtra police, as on Fri-
day, 15 men and an officer
had succumbed to the di-
sease. As many as 1,666 personnel have
tested positive and 473 of them have re-
covered. In Mumbai, once the num-
bers started soaring and a few casualti-
es were reported in the police force,
personnel aged above 55 years were
sent on leave. Now, that list includes
those above the age of 50 years and ha-
ving ailments like diabetes, hyperten-
sion and obesity. Pregnant women and
staff below 50 years but having any
other ailments or symptoms of Co-
vid-19 too can take leave.
Earlier, the liquor sale was comp-
letely banned in the city, which is
worst affected by the Covid-19 out-
break in the country.
Basically, liquor can on-
ly be sold, if it is home-de-
livered to customers and
these shops as well as the-
ir customers are outside
the containment zones.
Earlier this month, the civic body
had allowed the liquor shops to re-
main open, but later revoked per-
missions, following violation of all
quarantine norms.
 4 Covid-19 Impact: Companies
The Economic Times, Mumbai, Saturday, 23 May 2020
Corp Caterers Pivot to Stay Solvent
ON THE BOIL Companies change business models, expand into new categories as core business nosedives
Aditi.Shrivastava1
@timesgroup.com
Bengaluru: Corporate caterers
are pivoting business models and
expanding into newer categories,
following a steep fall in core busi-
ness over the last two months due to
the Covid-19 pandemic.
Elior India, Sodexo and Compass,
as well as smaller players like Hun-
gerbox, Petoo and Zoiffin say office
cafeterias will sport a different
look once social distancing mea-
sures and a focus on hygiene take
root as India Inc gradually restarts
and reimagines workplaces.
They say pre-packaged food trays,
vending machines and contactless
dining practices will become the
order of the day, replacing tradi-
tional food courts, live counters
and shared resources - microwaves
and coffee machines — in cafete-
rias.
“In the short term, food at work
will undergo a transformation
of a type the world has not seen
in its living memory,” says
Sanjay Kumar, CEO of Elior
India.
Technology will reduce
the number of contact
points in food delivery
and fundamentally
shift the industry,
he added.
The back-end
kitchens will
also see signif-
icant enhance-
ED Gets SC Nod to
Attach JP Morgan
India Properties
Amrapali Case JP Morgan denies any fund diversion
Samanwaya.Rautray
@timesgroup.com
New Delhi: The Supreme Court on
Friday permitted the Enforcement
Directorate to attach `. 187-crore JP
Morgan India’s properties in a case
related to alleged transactions with
developer Amrapali Group.
According to the ED’s case, the
JPMorgan Chase unit had helped
the local company divert funds by
violating India’s foreign invest-
ment rules, and it had identified
`. 187 crore to be proceeds of crime.
JP Morgan denied the charges, and
said it “intends to vigorously defend
ourselves against them”.
Responding to ET’s queries, the fi-
nancial services company said JP
Morgan India Pvt Ltd had neither
invested in, nor received any proce-
eds from, Amrapali group. “We have
an application pending to deal with
these claims. Compliance with app-
licable laws, regulations and polici-
es including foreign direct invest-
ment rules is fundamental to how
we do business and we always coo-
perate with any government or re-
gulatory agency,” it said.
Earlier in the day, a bench compri-
sing Justices Arun Mishra and UU
Lalit gave ED permission to attach
properties on a request from its co-
unsel, additional solicitor general
Sanjay Jain. A copy of the order
wasn’t available till press time.
The court is monitoring the probe
into alleged siphoning of funds
from Amrapali, which resulted in
the group going bust and left thou-
sands of homebuyers in the lurch.
JSW Steel Q4 Net Declines 85%
Our Bureau
Mumbai: JSW Steel on Friday re-
ported a steep decline of 85% in
consolidated net profit in the fiscal
fourth quarter, with the lockdown
causing a demand shrinkage both
at home and overseas.
Profit fell to `231crore, with domes-
tic sales shrinking 5% and exports
declining 51%.
“Due to the lockdown…project ac-
tivity at various sites was severely
constrained. All sites are impacted
due to non-availability of required
manpower and material due to rest-
rictions on movement,” the compa-
ny said in a statement on Friday.
It also said that the board has app-
nter 1
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ED also wants to attach personal
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Morgan India under the Prevention
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Legal experts said ED could straigh-
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company can appeal against the de-
cision in a month before the adjudi-
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People in the know said the agency
was ready with a charge-sheet to be
filed before a special PMLA court.
The top court asked the govern-
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of state-owned NBCC to restart the
projects stuck due to Amrapali. The
court urged the government to at le-
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NBCC. It also heard out senior advo-
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2021 is revised to about `9,000 crore
from the earlier guidance of `16,340
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is (a) location where digital order-
ing, boxed meals and virtual card
payments can be of great help,” said
Karan Totlani, corporate services
director of Sodexo India.
Some startups in the space are
thinking of using Internet of
Things and hardware solutions to
automate high-touchpoint tasks,
like tea counters and manual kitch-
en processes.
“High-contact vending machines,
€ Tech to reduce the number of
contact points in food delivery
€ Back-end kitchens will also
see enhancement of personal
protective equipment and facial
recognition thermal cameras
ANIRBAN BORA
Boom Time Ecommerce platform recruiting seasonal associates
across fulfilment and delivery network to meet rising demand
Amazon All Fired Up, to
Hire 50,000 Temp Staff
Our Bureau
Bengaluru: Amazon will hire
nearly 50,000 temporary workers
to cope with surging demand
from online shoppers for both es-
sential and non-essential pro-
ducts, as India eases nationwide
restrictions announced in
March to curtail the Covid-19
pandemic. These temporary as-
sociates will work alongside the
existing supply chain staff at the
online marketplace helping to
pick, pack, ship and deliver or-
ders to customers.
“We are creating work opportu-
nities for close to 50,000 seasonal
associates across our fulfilment
and delivery network,” said Ak-
hil Saxena, VP of Customer Ful-
filment Operations, APAC, ME-
NA & LATAM at Amazon. These
jobs will include part-time flexib-
le work opportunities being offe-
red through the American retai-
ler’s newly launched Amazon
Flex service, the company said.
Country manager Amit Agar-
wal tweeted that additional wor-
kers would help Amazon “meet
the surge in demand and to provi-
de critical service in this diffi-
cult time.” However, Amazon did
not quantify the rise in demand
following the opening up of
ecommerce sales across the co-
untry — barring containment zo-
nes — or the extent of manpower
shortage that it is facing.
Ever since the government or-
dered a nationwide shutdown on
March 25, Amazon, like other
ecommerce players in India, has
seen a sharp reduction in on-gro-
und staff owing to widespread
displacement of workers.
Bosch Profit Dips 80% in Q4
Mumbai: Leading automotive
components maker Bosch on
Friday announced a sharp de-
cline in profits for the March
quarter due to a slowdown in
the automotive sector and ex-
ceptional expenses occurred to
provide for asset impairment
and restructuring projects.
The company forecast 30% de-
cline in the automotive market
in FY21. The company’s profit
declined by more than 80%
over the corresponding quar-
ter to `81 crore. Revenue de-
No Mileage in Loan Pause: Large Fleet Operators
NO ONE-TIME DEBT RECAST With 85% of fleet inactive, many cos refuse to pick up registered trucks from dealerships
Lijee.Philip@timesgroup.com
Mumbai: Large fleet operators
across India were disappointed
after the Reserve Bank of India
didn’t offer a one-time debt rest-
ructuring facility that they’d be-
en expecting and instead exten-
ded a moratorium on loan repay-
ments on Friday.
Operators said extension of the lo-
an moratorium by three months to
August 31 will only worsen their
problems because their interest
burden will keep mounting. Cur-
rently, they operate only about 15%
of their fleet strength.
“Conversion of interest to a term
loan to be repaid subsequently
will be an added burden for the
borrower if the market does not
pick up and the lockdown is not
CHANGING MENU
In the short
term, food at
work will un-
dergo a transformation of
atype the world has not
seen in its living memory
SANJAY KUMAR
CEO, Elior India
and external vendors multiply in-
fection risk. We've built a Desi Chai
Maker for small to medium sized
offices with a smart temperature
driven brew process that optimizes
for flavour extraction, taking skill
out of the equation," said Shirish
Subramanian, founder of Ubaal
Chai. Others like Daalchini are
providing healthy home-cooked
food to professionals through IoT-
enabled vending machines.
“We are present in over 200 office
complexes and also started placing
kiosks in residential areas,” said
Prerna Kalra, cofounder, Daalchi-
ni. Across the board, caterers are
narrowing their exposure to offices
and expanding to adjacent markets
including industrial workforce,
subscription programmes and con-
sumer packaged food.
“In early March, we started work-
ing on a parallel strategy to build al-
ternative revenue channels,” said
Amazon usually hires
seasonal associates
ahead of festive sales
50% of new hires
could be to make up
for labour shortfall,
say experts
Amazon has added
Flipkart is well-serviced 175,000 workers
with 120,000 workers in the US to cater
returning to work to demand
And while there has been an im-
provement in fulfilment and deli-
very capabilities, ecommerce
firms have been operating at sub-
optimal levels, experts said.
“I think 40-50% of these hires
(by Amazon) will be to make up
for the shortfall that they might
have on the labour front and the
rest might be for the planned ad-
ditional demand that they might
see,” said Rituparna Chakrabor-
ty, cofounder of staffing firm Te-
amLease. “It’s unlikely that
Amazon will end up hiring 50,000
people in one go because they too
will be cautious,” she said.
Analysts reckon the demand for
items like smartphones, electro-
nics products aiding remote wor-
king and studying, low-cost ap-
parel, kitchen appliances and
utensils is rising fast while that
for large appliances such as dish-
washers, vacuum cleaners and
air conditioners is growing more
slowly, said industry executives.
However, the overall sales for
the industry is yet to reach the le-
vels of 2019 when the sector not-
ched up around $33.5 billion in
sales, according to market track-
er Forrester Research.
Amazon said it will follow the
clined 18% to `2,237 crore.
Meanwhile, earnings before
interest, tax, depreciation and
amortisation (EBITDA) de-
clined 34% to `341 crore.
“This is very good performance
for such a difficult time,” said
Soumitra Bhattacharya, MD,
Bosch. It incurred an exception-
al expense of `297 crore in Q4 in
part to provide for asset impair-
ment for obsolete technology due
to the upgrade in emission
norms in the country to BS-VI
standards.— Our Bureau
fully lifted by June,” said Ashok
Khanna, ex-auto finance head of
HDFC Bank. Companies such as
Tata Motor Finance have started
exploring options such as bill
discounting, rescheduling
of term loans, private equi-
ty funding and lease
options for such fleet
operators.
With 85% of their
fleet inactive, ma-
ny large com-
mercial vehicle
operators are
now refusing to
pick up registe-
red trucks from
dealerships, ci-
ting the lack of
revenue and cash-
flow. Some of them had
started replacing old trucks,
Kumar Setu, cofounder of Petoo,
which operated more than 40 take-
away counters at company prem-
ises and dine-in restaurants across
8 cities prior to the pandemic. The
company launched Cloudfood, a
meal subscription platform for cor-
porates and individuals, and Hello-
Fresh, a packaged gravies kit.
MOUNTING PRESSURE
Institutional food tech company
Hungerbox said mid- to small-
sized vendors will be hurt the most
amid the economic uncertainty.
“We have taken 200 staff from our
food vendors and brought them on
to our rolls, and are also discussing
a ‘support price’ to food partners to
ensure that they can tide over dur-
ing this time,” said Sandipan Mi-
tra, CEO of HungerBox.
Other small players, for instance,
Ashish and Deepti Nanda’s Mom’s
Kitchen supplied corporate meals
to Accenture India’s Gurugram fa-
cility.
“When Covid-19 (outbreak) hit,
we shifted the focus to deliver only
packed food and exited all live
kitchen operations,” he said.
The company has launched an
app, Zoffin, which aggregates de-
mand from individuals and corpo-
rates through a network of resell-
ers. The stress caused by the pan-
demic on the corporate catering
sector is global in scale. Compass
Group, the world’s biggest catering
firm, saw its global revenues
halved in April, with about 50% of
its operations shut.
It will spend
$4 billion
in Q2 on its
Covid response
same standards of wellbeing for
on-ground workers it rolled out
at the start of the pandemic,
which includes hazard pay, in-
creased sick leave, apart from
measures such as mandatory we-
aring of masks, temperature
checks and regular sanitation of
warehouses and delivery hubs.
Lendingkart
Lays Off 200
New Delhi: Fintech
lender Lendingkart
has fired over 200
employees or 30% of its work-
force. The company confirmed
the layoffs to ET in an email.
“The company has let go off 30%
of employees. The outbreak of
Covid-19 and slowdown has had
a tremendous impact on the
economy,” a spokesperson said.
Lendingkart also said layoffs
were part of its annual appraisal
cycle. — Prachi Verma
New Normal
 From page 1
Cooking on your own may be fun,
but it’s also a chore many are
unused to. So, mixer-grinders,
oven-grills, hand-held blenders,
and non-stick cookware are in
unusual demand. And to not get
bored at home, families are buy-
ing board games and toys. As for
bigger orders for home and inner
wear, and flip-flops, they reflect
exigencies of spending long pe-
riods at home.
hoping that business would pick up,
said dealers.
“Commercial vehicle manufactu-
rers are asking us to release finance
but customers are saying they
won’t be able to honour
EMIs, having
lost many
contracts,”
said a se-
nior of-
ficial
ON THE MONEY Jio has one of the most modern,
scalable and cost-efficient telecom infra
‘Jio’s Telco-Digital
Combination was
Key Attraction’
Q&A
KKR decided to
bet on Jio Plat-
DATAWISE
form because of Indian consu-
its unique combination of a pro-
fitable, market-leading telco busi- mers want to
ness with a number of high-growth
digital B2C and B2B businesses built
consume con-
on top, the US private equity firm’s tent and other digital
India CEO Sanjay Nayar and its Asia
head of technology Lucian Schöne- services at an affor-
felder told ET’s Devina Sengupta &
Arijit Barman in an interview.
dable price point, which
Excerpts: is now achievable since
What makes Jio an attractive bet? data prices have fallen
Schönefelder: Jio is a unique SANJAY NAYAR
combination of a profitable, market- CEO , KKR India
leading telco business with a num-
ber of high-growth digital B2C and Nayar: This is coming from our Asia
B2B businesses built on top. We private equity and growth tech-
haven't seen such a combination nology funds.
anywhere else in the US or Europe,
and it was certainly one of the key Are you going to invest in more
attractions for us to invest. Over the consumer internet companies in
last couple of years, Jio really built India?
one of the most modern, scalable Schönefelder: KKR has made a
and cost-efficient telecom in- number of very successful B2C
frastructures in the world. Even investments. If we look in our Asian
though Jio is a telco business at its portfolio, ByteDance and Gojek are
core, it is built on best-in-class B2C companies. We’ve made an
technology that has allowed them to investment in a Chinese company
ramp up and scale very efficiently. called Huohua, which is an online
What gets us really excited is the education business, and also B2C.
potential that this platform has to We invested in Trainline in the UK,
distribute digital services to consu-
which is the largest B2C online
mers through the MyJio app. We
think there is a lot of pent-up consu-
mer demand for a lot of digital
marketplace for rail tickets globally,
which we successfully listed in the
UK. So, we’ve seen quite a lot of
services and that India is really at an momentum in our B2C investing
inflection point in that regard. The
other thing that got us really excited
about this opportunity, and which
can easily be overlooked, is the B2B
opportunity that is ahead of Jio. If
activities. That said, what we've
historically stayed away from – and
what we have got to continue stay-
ing away from — are really low-
margin business models with chal-
you look at IT software spending as a lenging economics. We’re more
percentage of GDP, India stands attracted to businesses like Byte-
roughly at 0.20% of GDP compared Dance and Gojek, which are inter-
to the US at around 1.1% of GDP and esting because they have the ability
Europe at 0.6%. There are all sorts of to achieve attractive economics.
B2B software services that we think
Jio can cross-sell together with its
B2B connectivity services.
Nayar: From a macro standpoint,
what attracted us is that India is
digitising rapidly, and Indian
consumers want to consume
content and other digital servi-
ces at an affordable price point,
which is now achievable since
data prices have fallen. Secondly,
Jio’s compelling entrepreneurial
vision. I think the digitised offering
that they are putting together is
very impressive, and is a winner all
the way.
Which KKR pool
of capital are
you using for
investing?
US Class Action Suit Withdrawn: Infy
Bengaluru: A class action suit brought against IT services
provider Infosys in the US has been withdrawn by the
plaintiff, the Bengaluru-based company said in a regu-
latory filing. The suit, which was heard in the District
Court of New York, had alleged that the company violated federal
securities laws. On May 21, “the plaintiff voluntarily dismissed the
lawsuit without prejudice,” Infosys said in the filing, without giving
further details. The lawsuit was filed in October last year against
Infosys and some of its former and current executives. — Our Bureau
Future Group’s CEO for Big Ba- Amazon India also said working
zaar Sadashiv Nayak calls it con-
sumers settling down to the new
out equipment, Kindle e-book re-
aders, Fire TV and Echo smart
normal. “Some of these purcha- speakers are other in-demand
ses would continue for the next products. Ecommerce sale of
couple of months. For instance, ‘non-essentials’ and brick and
work from home fashion essenti- mortar stores got government
als like pyjamas, ba- clearance to reopen on May 1.
sic t-shirts and But one old summer favourite is
shorts,” says Nayak, back in the reckoning, especially
adding these catego- in the North, where temperatu-
ries reported 1.8-2 ti- res are hitting 40 degrees and
mes jump in sales at store level above – air conditioners. Vijay
on-year. Sales director Nilesh Gupta said
A Flipkart spokesperson said if brisk demand continues for
toys, streaming devices, sleep- another few days, ACs and air co-
wear and labour-saving house- olers may recover 60-70% of the-
hold devices are in high demand. ir entire summer sales.
of a bank in CV financing. “If our hicles. The worst affected are the
delivery order validity has expi- automobile carriers — of about
red, then we cannot release funds 18,000 car carriers, 1,500 have been
to customers.” repossessed, as have a 10th of the
Fleet operators have been in talks 20,000 two-wheeler carriers. Com-
with the finance companies. Mu- panies said that while financiers
kesh Haritash, director of Chetak are left with no option but to take
Logistics, a New Delhi-based ope- back vehicles, it will leave a large
rator with 2,400 trucks, said they section of drivers without work.
want a one-time restructuring of Financiers even anticipate seve-
loans from five to seven years. ral fleet operators voluntarily sur-
“This will at least reduce our rendering their vehicles.
EMI component and give small According to industry estimates,
fleet operators a breather,” Hari- about 50,000 trucks repossessed by
tash said. Except for trucks lin- financiers and NBFCs over the
ked to the pharmaceutical, past 12-18 months after customers
FMCG and essential goods defaulted on payments are lying in
companies, all others have be- yards and finding no buyers.
en adversely affected. With the loan moratorium exten-
Operators unable to pay loan ded, about 15% of the vehicles will
EMIs face the threat of banks be repossessed from April 2021, ac-
and financial institutions cording to Amit Chandrawar, a lar-
repossessing their ve- ge-fleet operator based in Jaipur.

ICMR Clears HCQ for Wider
Usage, But with Some Riders
New guidelines state the drug can be given as a prophylactic to all asymptomatic healthcare workers
Teena.Thacker@timesgroup.com
New Delhi: The Indian Council of
Medical Research (ICMR) has re-
commended a wider use of hydrox-
ychloroquine (HCQ) in the battle
against Covid-19, brushing aside et-
hical concerns over a drug that
hasn’t been tested against the coro-
navirus after finding only mild side-
effects in its assessments.
According to the new guidelines —
which come with caveats — recom-
mended by the joint monitoring gro-
up and the national task force set up
by ICMR, hydroxychloroquine can
be given as a prophylactic for all
asymptomatic healthcare workers
involved in treating Covid-19, inclu-
ding those in quarantine centres.
Healthcare workers in all hospitals
— even those that are not specifical-
ly designated as Covid-19 centres —
can be given HCQ, they said.
The drug is recommended for
asymptomatic frontline workers
such as surveillance workers deplo-
yed in containment zones and para-
military and police personnel invol-
ved in Covid-19-related activities.
HCQ can be given to
asymptomatic house-
hold contacts of labo-
ratory-confirmed ca-
ses. The recommenda-
tions come with some
caveats — the drug should be discon-
tinued if it causes side-effects such
as cardiomyopathy and rhythm (he-
art rate) disorders.
The drug is not to be given to people
known to have retinopathy, hyper-
sensitivity to HCQ or G6PD deficien-
cy, a condition that causes red blood
cells to break down. The drug is not
meant for prophylaxis children un-
der 15 years of age and pregnant wo-
men. ICMR has made it mandatory
for the drug to be given under strict
medical supervision, on the presc-
ription of a registered medical prac-
titioner and with informed consent.
ET GRAPHICS
The Long
Road to
a Cure
This week India added 25,000
Covid-19 positive cases to
its running tally. However,
with the rising number of
new cases there have also
been some positive news
from the world of medicine.
Divya Rajagopal reports on
vaccines and drugs worldwide
that are emerging as possible
candidates to fight the virus.
‘Replaceable Filters’ for N95 Masks Soon
Press Trust of India
New Delhi: Researchers have de-
veloped a more efficient mem-
brane filter that can be attached
to a regular N95 mask and repla-
ced when needed. The filter has a
smaller pore size than normal
N95 masks, potentially blocking
more virus particles, according
the researchers from King
Abdullah University of Science
I1
I4,31A
d J.1
MANUFACTURING & SUPPLY
OF MATERIALS
ETenderNotice No. PCEECoR2021TPO 1
Dt.:19.05.2020
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AND SUPPLY OF 10125MM THICK WEB
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WITH LATEST ALTERATION COMPLETE
WITH ALL FITTINGS AS PER TENDER
OUANTITY:298 SETS ).
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in person shall be accepted against s.icb
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letter head and received in time. All sjc r
manual offers shall be rejected summ a ry
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Complete information including e-ter rier
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in website : http:/Iwww .ireps.gov.in
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PR-5511120.21 Bhubaneswar
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Tender schedule : Clause No. 1.2.2 , e.
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Existing : Submission of a notar zed
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Covid-19 Impact: Pharma & Companies 5
The Economic Times, Mumbai, Saturday, 23 May 2020
KEEN TO SUPPLY
Cipla and
Small Firms Think
Hetero Seek Outside the Box to
Clinical Trial
Waiver for Restart Operations
Remdesivir
Teena.Thacker Introduce incentive Woes Aplenty
Making It Clear @timesgroup.com
schemes, redesign
Industries in tier-2
and 3 cities worst hit
DRUG CAN BE GIVEN TO THE CAVEATS New Delhi: Indian pharma- assembly lines to tide Workforce left
FOLLOWING ASYMPTOMATIC PEOPLE... ceutical companies have ta- behind is seeking
Drug should be
higher wages
nHealth workers q Household discontinued if it causes ken a step forward towards
bringing remdesivir, a drug
over labour crisis
involved in contacts of cardiovascular side-effects Cos adopting tech
touted as a potential treat- to cut dependence
containment laboratory Sachin.Dave@timesgroup.com
Drug not recommended ment for Covid-19, to India. on manual labour
efforts confirmed
cases as prophylaxis in children Cipla and Hetero Labs have
oHealthcare under 15 years of age sought a clinical trial waiver Mumbai: Small and medium enter-
workers in for remdesivir from the Drug prises are consolidating labour, us-
non-Covid Not to be Drug to be given Controller General of India, ing innovative incentive schemes
hospitals given to under strict medical people familiar with the mat- and even redesigning assembly cations in fabrication,” said Deepak
p Frontline pregnant supervision with ter told ET. lines to tide over a labour crisis Acharya, chief executive officer of
workers women informed consent While all new drugs must un- brought on by the Covid-19 pandem- Inox India, one of the world's largest
dergo trials before getting ic and the resultant migration of cryogenic tank manufacturers.
marketing approval in India, jobless workers. Many of these mid-scale compa-
The recommendations were ba- the regulator can grant ex- Labour intensive industries in nies are also reaching out for help in
sed on an assessment of HCQ pro-
phylaxis among 1,323 healthcare
workers, which indicated mild ad-
HCQ Tied to Higher Risk of emptions in public interest
and in cases of national emer-
gency, extreme urgency and
the country, especially those in
tier-II and III cities, are unable to
restart operations as most of
developing a strategy for manufac-
turing and managing workforce.
“In such a scenario, efforts like
verse effects such as nausea (in
8.9% of the workers), abdominal
pain (7.3%), vomiting (1.5%), hy-
Deaths, Heart Issues: Study epidemics.
“The matter will be taken to
the subject expert committee,
their workers have migrated and
the small workforce left behind is
seeking higher wages. According
productivity improvement via
work flow and time and motion
studies, multi-skilling through
poglycaemia (1.7%) and cardiova- NEW YORK Antimalaria drugs their benefit. which will decide on the mar- to industry trackers, the mid-scale training within industry (TWI) are
scular effects (1.9%). that US President Donald The study looked at the re- keting authorisation and if cli- companies are now implementing more relevant now than ever," said
The experts also found data from Trump has touted for treat- cords of 15,000 people who had nical trials can be waived in an out-of-the-box strategies to tackle Aakash Borse, founding partner,
India’s pharmacovigilance pro- ment of Covid-19 were linked to been treated with the antimala- emergency situation of a pan- issues of labour and raw material. Faber Infinite Consulting.
gramme, which showed 214 repor- an increased risk of death and rials and one of two antibiotics demic,” the people said. “The Inox India, which operates three Pune-headquartered Varroc
ted instances of heart ailments in a study. Hyd- that have sometimes been pai- committee takes into conside- factories in Gujarat— in Silvasa, Group, a leading automotive light
Drug is not to
adverse reac- roxychloroquine and chloro- red with them. Treatment with ration the pros and cons.” Kalol and SEZ—has opted for la- manufacturer, is rejigging labour
be given to
tions associated quine didn't benefit patients any combination of the four Earlier, DCGI VG Somani bour consolidation after facing plans based on priority. “In some
people known
with prophylac- with the coronavirus, either drugs was associated with a had told ET that shortage of welders and skilled fit- critical locations, we are even im-
to have
tic HCQ use. Se- alone or in combination higher risk of death than seen India will allow ters for manufacturing pressure porting labour from Varroc facili-
retinopathy
ven were serio- with an antibiotic, accor- in 81,000 patients who didn't remdesivir to be vessels and related equipment. ties in other cities and states based
us cases, of which three had ECG ir- ding to the study published receive them. sold only if it “At our Kandla and Silvassa plants, on our first month priorities. The fo-
regularities. Friday by The Lancet me- The biggest risk increase shows “mea- we have 30-40% workforce from oth- cus is really to get labour into the fa-
An investigation from three Cen- dical journal. was seen in the group tre- Local ningful benefit” er states where we anticipate short- cilities where it is most required. We
tral government hospitals in New Researchers are sear- ated with hydroxychloro- companies in treating Co- age of manpower for critical applica- have doled out new incentive
Delhi indicated that healthcare ching through available quine and an antibiotic, have sought vid-19. Somani tions. We will be reallocating staff schemes for labour willing to
workers involved in Covid-19 care options to treat the coro- where 8% of patients exemption; had said the re- from other plants, especially skilled move,” said Arjun Jain, president,
who were on HCQ prophylaxis we- navirus, which has killed who got the combination subject gulator had ta- workers required for critical appli- electrical/electronics at Varroc.
re less likely to be infected than tho- more than 330,000 people, developed a heart arrhyth- expert ken note of the
se who were not on the drug. including drugs like the antima- mia with 0.3% of those in the committee caveats that
An observational prospective stu-
dy at the AIIMS in New Delhi sho-
wed that 248 of 334 healthcare wor-
larials that are also already app-
roved to treat lupus and rheuma-
toid arthritis.
comparison group. The drugs
should only be used for Covid
treatment as part of robust stu-
to decide
on matter
remdesiver de-
veloper Gilead
Sciences had disclosed while
IIT-Ropar, TSW Launch
kers who took HCQ prophylaxis Trump's endorsement has led dies that will definitively show launching the drug in Japan.
had a lower incidence of coronavi-
rus infection than those who didn’t
take the drug.
many people to take the medica-
tions without scientific proof of
their impact, the researchers
said. — Bloomberg
The US company said it was
not yet known if remdesivir
was “safe or effective” for the
Online Course on AI tificate courses may even be conside-
treatment of Covid-19 and the- Our Bureau red to lead to a degree.
re was a possibility of “unfavo- “There is a strong realisation that
Serum Institute of India & Beximco: Bangladesh- urable” results emerging from New Delhi: IIT-Ropar and TSW, the job roles will be altered by new digi-
additional clinical trials. executive education division of Ti- tal technologies across all levels of
AstraZeneca (AZ): India’s based generic drug maker
Serum Institute and British Beximco said that the The US granted emergency mes Professional Learning (part of organisations, whether at entry le-
drug maker AZ have started company has manufactured approval to use remdesivir for Times of India Group), have laun- vel or senior managerial. The cour-
talks for manufacturing Gilead’s Remdesivir and the treatment of critical Co- ched an online post-graduate certi- se in AI and DL offered jointly by
vid-19 patients. Japan, too, has ficate programme in artificial intel- IIT-Ropar and TSW seeks to add-
and scaling up of the will provide it for free to
Oxford University vaccine Covid-19 patients admitted granted similar approval for ligence (AI) and deep learning. In a ress this growing skill gap,” said
that has emerged as the in the country’s government the drug, originally developed virtual ceremony on Thursday, Sa- Srikrishna.
front-runner for Covid-19 hospitals. This move has to treat Ebola. rit Kumar Das, director, IIT-Ropar,
cure. In an interview to ET, not gone down well with The US Food and Drug Admi- and Anish Srikrishna, CEO, Times
Adar Poonawalla, CEO of the US-based pharma nistration authorised emer- Professional Learning, signed an
Serum Institute, said the company, which has said gency use for the drug after tri- MoU for a long-term collaboration.
company has the capacity that it can’t comment on or als showed that it halved the re- The artificial intelligence program-
to manufacture over verify the authenticity or covery time for moderately af- me is the first to be launched as part
100 million doses of effectiveness of the product fected patients to five days. of this collaboration. The program-
vaccines and India will as it is not manufactured Gilead has so far signed li- me will cover subjects such as AI in
get access to the by the company or its censing agreements with Ci- context with other emerging tech- The Indo-Taiwan Joint Research
drug if the trials licensed partners. pla, Jubilant Life Sciences, nologies. Successful candidates will Centre (ITJRC) on AI and machine
succeed. Hetero and Mylan. ET first re- receive a joint certificate from IIT- learning at IIT-Ropar will coordi-
Strides Pharma: The Bangalore-based Biocon: This biopharmaceu- ported on May 5 that Gilead Ropar and TSW, and IIT-Ropar ex- nate the programme.
company said that it has received an tical company has kicked was in talks with several com- ecutive education alumni status. About 50-100 students would be se-
approval from the Drug Controller off trials of Itolizumab. The panies in India for licensing “The (Covid-19) crisis has only en- lected in the first cohort, which be-
General of India to start trials phase-II study, which is agreements. hanced the requirement for such an gins in September 2020. Applica-
on the flu medicine Favipiravir for taking place in three cities, Hyderabad-based generic online programme,” said Das. Lear- tions will open in July. Classes will
Covid-19. It is the second company will look at the efficacy and pharma company Hetero ners could create their own “portfo- be conducted online on weekends,
to have started trials safety of Itolizumab – a Labs told ET earlier that it was lio” of courses from various institu- with additional learning and pr
on Favipiravir, the drug used to treat patients working on a “war footing” to tes and in future, a bunch of such cer- jects through the rest of the week.
other company with psoriasis – in Covid-19 make remdesivir available to (To know more, you can log on to timestsw.com/course/post-graduate-
being Glenmark. complications. Covid-19 patients in India. certificate-programme-in-artificial-intelligence-deep-learning/ or
email:tswadmission@timesgroup.com or call: 7400084666)
c7 - TO AffK L MINISTRY OF COMMUNICATIONS
and Technology (KAUST) in Sau-
di Arabia.
N95 masks filter about 85% of
particles smaller than 300 nm,
-ST1 i fEf f o DEPARTMENT OF TELECOMMUNICATIONS
Since the outbreak of Covid-19, they said. The researchers noted DEBNNATNAIL RAIENDIA PRAM 111118111 UTPADAK SANNAIN SANGN ETD.
ISO 22000:9 Advt. No. 15-02/2019-Restg.
there's been a worldwide shortage that SARS-CoV-2, the coronavirus - BARAUNI DAIRY - Dated: 20th May, 2020
of face masks — parti-
cularly the N95 ones
that causes Covid-19 is in the size
range of 65-125 nanometres (nm), DRMU: PUR : 2139 Date: 18.05. 2020 Ministry of Communications , Department of
worn by health care so some virus particles could slip NOTICE INVITING TENDER (NIT) Telecommunications , Government of India, New
workers, they said. Alt- through these coverings.
hough these coverings provide the Due to shortages, many health
Online tenders are invited for supply of following Plant Machineries at DRMU , Barauni Dairy, Barauni under RKVY
2017-18 from reputed manufacturers who are registered for Sale Tax , Income Tax etc . under statutory requirements . Delhi invites applications from Indian Nationals for
highest level of protection cur-
rently available, they have limita-
care workers have had to wear the
same N95 mask repeatedly, even S.No. Name of Materials Estimated Cost(Rs.) EMD Amounts(Rs.) the two posts of Members in the Telecom Disputes
tions, the researchers noted in the though they are intended for a Dlsmantling/and Rearrang ing of Existing Settlement and Appellate Tribunal (TDSAT).
journal ACS Nano. single use.
1
Pipelines and Supp ly, Fabrication,
Erection and Commissioning of Dairy 35.00 Lakh 70,000.00 TDSAT is mandated to adjudicate disputes arising
Pipe Lines and Fittings at DRMU , Barauni in the telecom sector of the nature specified in
SOUTHERN RAILWAY
MATERIALS MANAGEMENT DEPARTMENT Supply, Commissioning & Testing of Section 14 of the TRAI Act, 1997 and also exercise
E-TENDER NOTICE FOR THE SUPPLY OF STORES No.24/2020
2 Continuous Khoa Making Machine at
DRMU, Barauni
50 .00 Lakh 1,00,000.00 jurisdiction , powers and authority conferred on the
Dated : 21-05-2020
Southern Railway has implemented an e-system. All advertised Tenders Details of Tender programme ,Tender documents,Specifications of Items, General Terms & Conditions are
Appellate Tribunal under the Information
will be dealt through e-procurement system only. No Manual offer / Postal mentioned in tender document which may be obtained throug h websile www.eproc .bihar.gov.in since 22.05.2020. Technology Act , 2000 and Ai rport Economic
Regulatory Authority of India Act , 2008.
offer will be entertained. These Tenders can be accessed under the link Managing Director
www .ireps .gov.in-SR-COS.
P.O. : Barauni-851112, Distt-Begusarai , Bihar; Phone: 06279 - 232888, 232903, 9570900707; Fax:06279 232930
SI .
No.
E-Tender
No.
Descri ption
Tender Closing
Date & Time
Email address: sudhadnnu@gmail.com I Website:www .sudhadrmu.com Qualification for the post and other
1. 82/20/5271/EOT Universal Relay Plug-in-Type 25-06-2020 details are available on http://www.dot.gov.in
Railway reserves the right to issue any Corrigendum to the Tenders.
@ 14.30 Hrs.
TO 1 or http ://www.persmin .nic.in or
Important Notice to Vendors: e-procurement is in the link www .ireps.gov.in -STET WMiTiEF I' 1 Ttr fro http://www.tdsat.gov.in
DEPUTY CHIEF MATERIALS MANAGER I DESNRATNA DL RAIENDRA PRASAD DUGDN UTPMAJ(SMIMI SAND LTD.
Construction , Egmore , Chennal - 600 008. ISO 2200o-2005 davp 06201/11/0003/2021
- BARAUNI DAIRY -
DRMU : PUR : 2137 Date: 16.05.2020 MUNICIPAL CORPORATION OF GREATER MUMBAI
NOTICE INVITING TENDER (NIT) No. Dy. Ch. EJ188/Rds/City dt.21/05/2020
TaF Online tenders are invited for supply of following Plant Machineries at DRMU Barauni and e-TENDER NOTICE
moo , M.C.C. Khagarla under NPDD 2018 - 19 Project funds from reputed manufacturers who are
weft registered for Sale Tax, Income Tax etc. under statutory requirements. Department Roads & Traffic
Ilifftt9131rW a ma trd f , S.No. Name of the Work/ Item Estimated Cost(Rs.) EMD Amounts(Rs.) Division Dy. Ch.E.Roads (City)
9. vrum aiei i ift aY g a Fri 3v-: i vs a =i s a : , i a a i, i `ni o rO Subject & e-Tender AC- 173: Pre-monsoon , preventive maintenance work and
" Supply, Installation, Testing and
WiRM t f45, grate 4 areas arlIIAIM$Ir3I T I ;A RTO zr
1 Commissioning of Atmospheric Type 50.00 Lakh 1,00,000.00 Number emergency works (Potholes and Bad patches) of various
Ammonia Condenser at DRMU , Barauni Dairy roads in Zone-I (A, B, C, D & E Ward) in City Division
WdW mac MUM4 zr / gd gfiir ff l'M areal. 7r-r 5- .d rr
(Year 2020-21 & 2021-22)
R errs gpMt Yr4gM MiA. gi gWOM os tgIEI4CI ZTT a4. Supp ly, Erection, Testing and
t,
2 Commissioning of Solar Water Heater 18.00 Lakh 36,000.00 Bid Invitation Na 7100177846
W. . foal
?i13fat fl91 1 Al f4 f fim WafcrArbfcl cI!
Capacity KL/ Day at M.C.C. Khagaria Estimated Cost- Rs. 20,00,00,000/-
31N 1 (j 9R , W a vrr ahfa WgM;gM r a and td" W&VqFc Supp ly, Installation , Testing and Tender Sale From Dt, 23,05,2020 at 11.00 AX To Dt. 10.06.2020
3 Commissioning of Solar Lighting System 13.00 Lakh 26,000.00 at 03.00 F M.
WO W4 UTUA , urt ta, flas ta #F]fd1FTf& aitQma 4a 311 ft, ilft 31r9ROc1w1a:r-.r4o-1 at M.C.C . Khagaria
Website httpJ/oortal.mcgm.gov.in
MMair ara We)-CM / aroma pZtt erefil ma n qd grar9R f 1Rra Supp ly and Installation of Refrigerated
4 20.00 Lakh 40,000.00 Contacts
Wt. Container at Our Vehicle at M.C.C . Khagaria
19. er ufzt gia19 NOOMU 41COa1 jpjjjjqj N jrAj MCGM 24 X 7 err
t <t :'9T1: Supp ly, Installation and Commissioning of A) Name Shri, S. N. Bhore
4w 3 30 4;mit#c1. 5 Crate Washer Capacity- 1200 Crate/Hr. at 20.00 Lakh 40,000.00
*
DRMU , Barauni Dairy B) Mobile No. 9323116248
6. g Ur.MU w i Elf rgA1 Fit a qft M1 U * f ftM aszeargh i m .FNiri i W c r ' a ti'
MMMZqM f fZNM saver a .aeae ar aTe OF . Nr li gFra trA l Pdrrfta an: a Details of Tender Programme , Tender Documents, Specifications of Items , C) Tel. No. (Office) 022-23002493
rn9 Tvn .h C
-x I
C C' 'e C ' 4 P N5'I Y1 <1V+gR1 i1 f1l T _ f l l. General Terms & Conditions are mentioned in tender document which may be obtained D) e-mail Address dvcherdscitvtdr.mcam@amaiLcom
,
omn ; CONNECT 2020 z7 fY cT i3 ( U; c 3rk' 30*0. throug h website www.eproc .bihar.gov.in since 22.05.2020.
Wet- Managing Director Sdf-21.05,2020
.. .. . , . . aura 3Ttftera; , Dy. Ch, Eno, (Roads) City
P.O. : Barauni -851 112, Distt-Begusarai , Bihar; Phone : 06279 - 232888 , 232903, 9570900707
PRO/126/ADV/20-21 Email address : sudhadrmu@gmail.com I Website: www.sudhadrmu .com I Fax : 06279 232930 PRO/123/ADV/20-21
 6 Markets: Beating Volatility
The Economic Times, Mumbai, Saturday, 23 May 2020

Market Trends THE CENTRAL bank head announced extension of moratorium on loans and asset classification
standstill on stressed loans by another three months to deal with economic fallout of Covid crisis
Bharti Telecom
Raises `3.5kcr via
STOCK INDICES % CHANGE

Macro Impact of Pandemic More

Nifty 50 9039.25 0.74
Sensex 30672.59 0.84
MSCI India
MSCI EM
663.99
2115.05
1.02
2.05 Commercial Paper
MSCI BRIC
MSCI World
Nikkei
573.52
8842.72
20388.16
2.34
0.26
0.80
Severe than Anticipated: RBI Guv Funds to be used to Future Plans
Cash to help
Hang Seng 22930.14 5.56 Our Bureau
BOOST TO MSMEs refinance existing Analysts
The impact of address expect
Strait Times 2499.83 2.17
Mumbai: In his third address the shock has loans, meet working Airtel’s Bharti Airtel
OIL ($/BRL) BOND (%) since India was forced to go into a
been com- Sidbi Gets a capital needs: Experts
immediate
short-term
to return
to profit by
lockdown, Reserve Bank of India
DUBAI CRUDE
34.17
GSEC 2030 YIELD*
5.74 Governor Shaktikanta Das an- pounded by Credit Facility financing
needs
the end of
December
1.97 0.03 nounced extension of moratorium the interac- Saikat Das and Kalyan Parbat
Absolute Change *Coupon 5.79% on loans and asset classification
standstill on stressed loans by an- tion of supply Rollover, `88,251 cr Airtel’s net debt
Mumbai & Kolkata: Bharti Te-
GOLD RATE other three months till August 31.
The announcement, which came
disruptions Exim a Fresh lecom, the holding company of
excluding lease obligations for
quarter ended March
US ($/Oz) India (`/10Gm) and demand Bharti Airtel, raised about `3,500
OPEN 1726.00 46466.00
10 days before the earlier May 31
deadline, almost allowed accumu- compression Line of Credit crore via commercial paper that
LAST* 1728.20 46820.00
offered 6.16% on average with a `1,18,235 crore.
lation of interest payments on SHAKTIKANTA three-month maturity. After Bharti Airtel raised over
Prev chg (%) 0.37 0.93 working capital loans, payable in a DAS Our Bureau
The money raised, tapping chea- $3 billion earlier this year thro-
staggered manner between Sep- RBI Governor
FOREX RATE (`-$ Exchange Rate) per funding avenues, will be used ugh a combination of qualified
tember and March 2021. Small businesses received to refinance existing loans and institutional placements and
OPEN LAST* The governor also painted a fresh credit support from the meet working capital needs, ex- overseas convertible bonds, the
75.73 75.96 bleak picture of the economic central bank in Friday’s un- perts said. combined holding of the Sunil
growth indicating that these ac- while the group exposure limits days and a special term-loan scheduled monetary policy “These are routine treasury acti- Mittal-led telco’s promoter and
*At 6 pm IST Source: Bloomberg, MCX, ETIG tions announced were quite were relaxed to 30%. package be allowed for industries review, which sought to ease vities by Bharti Telecom to mana- promoter group is 58.98%.
Market on Twitter@ETMarkets warranted. “The latest round of rate cuts, worst hit by the coronavirus-in- financing access for an eco- ge rates and refinancing of its own Bharti Telecom and Singtel ef-
“The MPC is of the view that the moratorium extension, defer- duced lockdown. These requests nomic segment that gener- existing portfolio,” a Bharti Group fectively hold 38.79% and 33.29%,
macroeconomic impact of the ment of interest on working cap- have so far not been entertained ates a large number of jobs spokesperson told ET. Bharti Air- respectively, in Airtel. GIC owns
SHORT TAKES pandemic is turning out to be ital facilities and relaxation in by the regulator. but often struggles to raise tel shares fell 0.2% to `593 at the clo- 2.79% and the remainder 25.69%
more severe than initially antici- asset classification will provide “Our tendency has become that the cash necessary to run se on the BSE on Friday. is owned by the Mittal family.
pated, and various sectors of the the requisite balm to the econo- whatever has been given, just their operations. Commercial paper, typically, is a “Bharti’s management is confi-
 Rupee Falls 34 Paise economy are experiencing acute my,” said Zarin Daruwala, CEO take it and ignore it and then Sidbi’s credit facility to short-term debt instrument with dent that the pandemic will have li-
stress,” Das said in a video-link (India), Standard Chartered start talking about what has not the micro, small and medi-
to 75.95 Against Dollar address. “The impact of the shock Bank. “The support shown to Ex- been done,” said Rajnish Kumar, um enterprises (MSME)
less than one-year maturity. mited impact on FY21 EBITDA
Interest rates on three-month growth, which it forecasts to be at
MUMBAI The Indian rupee slipped 34 paise has been compounded by the in- im Bank, Sidbi and to impor- chairman, SBI. “The moratori- sector was rolled over, CPs softened by 220 basis points least 25%, supported by ARPU
teraction of supply disruptions ters/exporters will also help um takes care of the situation while Exim Bank received a
to close at 75.95 against the US dollar on between April 17 and May 15, ac- growth to `170-175 a month,” India
and demand compression.” boost sentiment.” around cashflow disruptions fresh line of credit. Fur-
Friday as Reserve Bank's fresh measures to cording to Reserve Bank of India Ratings said in a note Thursday.
Among its other measures, the Though in their wish-list to the and if someone needs after 31Au- thermore, exporters and
alleviate economic distress failed to strike a data. The rates may ease after the Analysts expect Bharti Airtel to
regulator also rolled over the RBI, lenders had also asked for a gust, a recast then whatever is importers had easier ac- central bank cut the policy rate by return to profit by the end of De-
chord with investors.Forex market senti- `15,000-crore Sidbi refinance fa- one-time restructuring of all the policy response or if there cess to financing as well. 40 basis points on Friday. cember, after a year of losses, dri-
ment also remained subdued due to weak cility by another 90-days, another loans, restructuring of overdue are any amendments to 7 June The Reserve Bank of India Rohan Dhamija, a partner at ven by strong operational met-
domestic equities, rising coronavirus cases `15,000-crore credit line was made loans be considered standard circular of RBI, or no amend- (RBI) had in its March state- Analysys Mason, expects “the rics such as average revenue per
in the country and fresh US-China trade
available to Exim Bank to meet loans, NPA classification extend- ments, banks will have to deal ment an- cash raised by Bharti Telecom to user (ARPU), which could get a
import-export credit demands ed to 180 days from the current 90 with the situation.” nounced a
tensions. The rupee opened weak at 75.72 at primarily help address Airtel’s boost from likely tariff increases
Measures special refi- immediate short-term financing and addition of 4G customers.
the interbank forex market and fell further nance facili-
undertaken needs and also potentially refi- Operationally, Airtel’s India bu-
as the day progressed and finally settled at
75.95, down 34 paise over its last close.
EASING BOND REDEMPTION PRESSURE to address ty of `15,000
crore to Sid-
nance the telco’s existing debt.” siness has continued to grow.
the stress due Airtel’s consolidated net debt March quarter revenue from lo-

States Can Withdraw from

to cash flow bi at RBI’s excluding lease obligations sto- cal mobile services rose 22% on-
 Edelweiss Bharat Bond disruptions policy repo od at ` 88,251 crore in the quarter year to `12,952.9 crore, while ove-
caused by rate for a pe-
ETF 2nd Tranche in July Covid-19 riod of 90
ended March. Including lease
obligations, debt is pegged at
rall India revenue climbed 14% to
`17,438.3 crore.
MUMBAI Edelweiss Mutual Fund will
launch the second tranche of Bharat Bond CSF to Meet Bond Payments days for on-
lending and refinancing,
which has been rolled over
ETF in July, with two new series. The two
new Bharat Bond ETF series will have
maturities of April 2025 and April 2031.
RBI relaxation could
states as a reserve fund for the
amortisation of their debt obli-
by another 90 days.
“In order to provide greater
flexibility to Sidbi, it has been
IRDAI Issues Guidelines
gations. The relaxation offered
Through the launch of these two new ETF
series, Edelweiss Mutual Fund proposes to
raise an initial amount of `3,000 crore with
cover 45% of their till March 31, 2021 will release an
additional amount of `13,300
decided to roll over the facili-
ty at the end of the 90th day
for another 90 days,” Gover- to Expedite Settlement of
outgo for this fiscal crore for redemption of their nor Das said in his statement
a green shoe option of `11,000 crore. The
ETF will invest in constituents of the Nifty
Bharat Bond Indices, consisting of AAA- Our Bureau
market borrowings, according
to ratings firm Care. As of end
March 2020, a total of `1.34 lakh
to the media on Friday.
MSMEs contribute to around
40% of the country’s GDP.
Amphan-related Claims
rated public sector companies. The first crore was being maintained by Besides, to enable the Exim
launch of Bharat Bond ETF in December Mumbai: The Reserve Bank of different states/UTs with the Bank to meet its foreign cur- Ashwin.Manikandan
2019 had raised `12,400 crore.
India has permitted the states RBI. Among states, Maharash- rency resource require- @timesgroup.com
to withdraw from the consoli- tra has the highest reserves at ments, the RBI is planning to
 Sebi Extends Measures dated sinking fund (CSF) to around `40,000 crore, followed extend it a line of credit of Mumbai: The Insurance Regula-
meet their redemption. This by Gujarat (` `13,277 crore), Oris- `15,000 crore for a period of 90 tory and Development Authority
to Tackle Market Volatility could cover 45% of their pay- sa ( `13,004 crore), West Bengal days (with rollover up to one of India (IRDAI) has issued a set of
ments for this fiscal. State governments have been (`
`10,730 crore) and Andhra Pra- year) so as to enable it to avail detailed guidelines for processing
MUMBAI: Regulator Sebi on Friday said “In order to ease the bond re- pushed to a corner with little desh (``8,059 crore), a report by a US dollar swap facility. of Amphan-related claims, kee-
stricter surveillance measures to tackle demption pressure on states, it revenue flowing because of a Care said. “These measures, along- ping in mind all social distancing
market volatility amid coronavirus pan- has been decided to relax the collapse in the goods and servic- But the central bank, which al- side earlier announce- norms to be followed by both insu-
demic will continue till June 25. Besides, rules governing withdrawal es tax (GST) collection and reve- so manages the market borrow- ments by the RBI and the fi- rers and customers to limit the
ensuring orderly trading and settlement, from the CSF,” RBI Governor nue from property registration ings of state governments, nance minister, have been spread of coronavirus.
Shaktikanta Das said in a tele- due to the continuing lockdown. warned that that states must en- undertaken to address the The cyclone, which hit the coastal The cyclone, which caused massive
these steps are aimed at effective risk
vised address. “Together with But they are also under stress to sure that withdrawal of funds is stress due to cash flow dis- districts of West Bengal, Odisha destruction, has left at least 80 dead
management, price discovery and mainte- the normally permissible with- meet a substantial chunk of ex- done prudently. This change in ruptions caused by Covid-19 and Bangladesh over Wednesday
nance of market integrity. The measures, drawal, this measure will enable penses to treat Covid patients withdrawal norms will come in- and to improve availability and Thursday, has left at least 80 de- mants are coming to office, insu-
which came into effect from March 23, will the states to meet about 45% of and bear the cost of maintaining to force with immediate effect of liquidity,” said Care Rat- ad while leaving behind a trail of rers should follow the government
continue to be in force till June 25, the Sebi the redemptions of their market essential supplies. and will remain valid till March ings in a report. massive destruction. directions regarding maintaining
said in a statement. borrowings, due in 2020-21.” The CSF is maintained by 31, 2021, RBI said. Anticipating an influx of claims social distancing and proper sani-
for loss of life and property, the IR- tization,” IRDAI said.
DAI has asked insurers on Friday to This is the first major natural dis-
THE LENGTHIER waiting period for banks to get their money back from borrowers is expected to hit profitability: Analysts work with state administrations to
identify policyholders in distress
aster to hit India in the times of co-
vid, and IRDAI guidelines may set

Financial Stocks with More Worries Lead Markets Lower

Our Bureau
Mumbai: Shares of banks and fi-
nancial companies slumped on
Friday, dragging the benchmark
indices lower, after Reserve Bank
of India governor Shaktikanta Das
announced extension of loan mo-
ratorium for all term loan repay-
ments till August 31. The lengthier
waiting period for banks to get
their money back from borrowers
is expected to hit their profitability,
said analysts.
Bank Nifty declined 2.6% to close
at 17,278.90. The Nifty Private Bank
index fell 2.8% to 9,421.55, while the
Nifty PSU Bank index ended down
and settle claims "expeditiously." a template for responses to future
“As a result of Cyclone “Amphan’, catastrophes by insurers.
there are reports of loss of human Waterlogging and damage due to
lives and loss of belongings in the torrential winds is expected to
0.9% to 1,090.15. affected districts of primarily the bring in a barrage of claims in mo-
Nifty Bank Index “Banks are already under pres-
sure from Covid lockdown and Bank Nifty Sees Huge Shorting states of West Bengal and Odisha,”
IRDAI said in guidelines issued to
tor, liability, property, crop, SME
and marine related policies, with
Constituents they are seeing issues on asset CEOs of all insurance companies. outgo that could run into several
TOP LAGGARDS quality also. Now this moratori- as Fears of Rising NPAs Loom “Initiate immediate action to ensu- crores of rupees.
um extension will be negative al- MUMBAI: The Bank Nifty could three months through August 31. re that all reported claims are re- "Our surveyors are on the ground
CMP % though, to some extent, the rate gistered and eligible claims are and it may take a few days before we
Bank move in an over 8% range, with a Open interest across F&O con-
(`) Chg* cut will be positive for credit settled expeditiously.” can say with authority the extent of
downward bias in the coming tracts of Bank Nifty rose by 65% to
Axis Bank 338.60 -5.21 growth and will bring down costs week, going by the heavy call 649113 as the index’ underlying val- Keeping in mind the travel rest- loss burden on the insurance in-
Federal Bank 37.65 -4.20 for NBFCs and banks,” said Lali- selling in May 28 expiry options ue fell 2.6% to 17279 on Friday. The rictions, insurers have also been dustry," said Shreeraj Deshpande,
tabh Shrivastawa, deputy VP at on Friday, reports Ram Sahgal. near-month contract witnessed a asked to nominate a senior officer COO, Future Generali India Insu-
RBL Bank 107.50 -4.02
Sharekhan. The range for the index is 16580- jump of 33% in open interest as its on the ground to act in the capacity rance. "In my experience, the cla-
ICICI Bank 292.40 -3.94 Axis Bank ended down 5.2% at 18020, the provisional closing value price fell to 17286 a share (20 shares of nodal in charge to liaise with ims typically start coming 5-6 days
Bandhan Bank 204.20 -3.15 `338.60, while Federal Bank, RBL of the 17300 straddle shows. Weak- equal one lot), a negative indicator. state administration to identify following the natural disaster."
HDFC Bank 842.65 -1.97
Bank, ICICI Bank, Bandhan Bank. ness in financials is underpinned “Ever since index broke down be- the affected policyholders. Damages incurred by the Kolkata
HDFC Bank, and IndusInd Bank by expectations of a surge in bad low 18500, it has been a major un- Furthermore, insurers have also airport and a few power plants in
IndusInd Bank 340.05 -1.95 ended down 2-4%. India’s largest loans even as the RBI extended the derperformer,” said Amit Gupta, been asked to advise customers to the affected districts are also ex-
*vs previous close lender, State Bank of India, ended moratorium on EMIs by another derivatives head, ICICI Securities. use online modes for intimating pected to be covered by companies,
down 0.6% at `151.10. claims. “If policyholders/clai- people aware of the matter said.

ding as of 31March 2020.” said. “The impact of the shock has

Stake Sales to Help Co Pare Debt AHEAD OF IPO

From Page 1
At the end of the March quarter,
RIL had outstanding debt of ` 3.36
lakh crore. It also had cash in
hand of `1.75 lakh crore, bringing
the net debt position to ` 1.61 lakh
crore.
Saudi sovereign fund PIF is said
to be closing in on a stake purchase
in Jio Platforms. RIL is also belie-
ved to be engaged in talks with
other including Mubadala, the
United Arab Emirates sovereign
wealth fund, ET has reported.
The RIL unit comprises mostly
its telecom business under Reli-
ance Jio Infocomm, which is the
largest in the country with more
than 388 million subscribers.
RIL’s other digital properties and
investments such as Jio Cinema,
Jio Saavn and Haaptik are hou-
sed in Jio Platforms.
“We are looking forward to leve-
raging KKR’s global platform, in-
dustry knowledge and operational
expertise to further grow Jio,” RIL
chairman Mukesh Ambani said in
the statement.
KKR is making the investment
from its Asia private equity and
growth technology funds.
“We are investing behind Jio Plat-
forms’ impressive momentum,
world-class innovation and strong
leadership team, and we view this
landmark investment as a strong
indicator of KKR’s commitment to
supporting leading technology
companies in India and Asia Paci-
fic,” KKR cofounder Henry Kravis
said in the statement.
Founded in 1976, KKR’s worldwide
investments include BMC Software,
ByteDance and GoJek through its
private equity and technology
growth funds. So far, it has invested
more than $30 billion in total enter-
prise value in tech companies.
INVESTOR IN BHARTI INFRATEL
KKR has been investing in India
since 2006. Interestingly, the priva-
te equity major has previously
backed Sunil Mittal’s Bharti Infra-
tel, the tower unit of Bharti Airtel,
which is Reliance Jio’s main rival.
In 2017, KKR bought a 10.3% stake
in Infratel along with one of its key
sponsors CPPIB.
The latest transaction is subject to
regulatory and other customary
approvals, RIL said. Analysts said
all the deals entail a fresh issue of
equity shares in Jio Platforms,
which means any tax incidence is
unlikely and the approval process
should be relatively quick.
“In days of uncertainty, investors
seem to regard an investment in Jio
as promising and low risk. This will
reduce Jio’s debt and improve its
competitiveness in market place,”
said Mahesh Uppal, director at Com
First, a telecoms think tank. “Co-
ming at a time of RIL’s rights issue
can only do it good by nudging other
investors.”
RIL aims to raise `53,125 crore thro-
ugh its rights issue — India’s biggest
and the first such by the firm in nearly
three decades. It opened on May 20
and will close on June 3.
Before KKR, General Atlantic sa-
id it will buy 1.34% stake in Jio
Platforms for `6,598.38 crore, Vista
Equity Partners a 2.32% stake for
`11,367 crore and Silver Lake 1.15%
for `5,655.75 crore. Facebook kick-
ed off the sequence April 22, say-
ing it would invest $5.7 billion for a
9.99% stake.
These investments “should reposi-
tion Jio as a major tech player rat-
her than just a telecom service pro-
vider,” CLSA said in a report.
Ratings agency Moody’s added
that these divestments were credit
positive because proceeds from sa-
les of the stakes will be used for debt
reduction and bring the company
closer to its target of reducing its
net debt to zero by March 2021.
“…Proceeds from these divest-
ments alone will help the company
pare around 49% of its net debt of
`1.6 trillion ($21.4 billion) outstan-
The fundraising spree comes ahead of
a planned IPO for Jio expected in two
years. RIL has over the last 6-12
months consistently talked about bu-
ilding Jio Platforms into a digital plat-
form on the lines of US major Alpha-
bet and technology giant Tencent.
“Diverse marquee investors are be-
coming long-term shareholders of
JPL because of a unique set of tech-
nologies and platforms under one en-
tity. There are no similar opportuniti-
es available anywhere else globally.
And an endorsement of the quality of
the management,” RIL said.
Morgan Stanley acted as financial
adviser to Reliance Industries, and
AZB & Partners and Davis Polk &
Wardwell acted as legal counsel. De-
loitte Touche Tohmatsu India LLP
was financial adviser to KKR. Shar-
dul Amarchand Mangaldas & Co. and
Simpson Thacher & Bartlett LLP we-
re legal counsel to KKR.
RIL is also talking to Saudi Aramco
for selling a fifth of its oil-to-chemi-
cals business in a $15 billion deal and
has sold half its fuel retail venture to
BP Plc for `7,000 crore apart from its
telecommunication tower business
to Brookfield for `25,200 crore. The
sharp drop in global oil prices this ye-
ar and demand compression in most
global economies could make an
Aramco deal difficult, some analysts
say. The Brookfield transaction is yet
to receive government clearance.
Selloff in Financial Assets
From Page 1
Although price pressures are felt in
the economy driven by gains in the
prices of pulses, the MPC put the re-
vival of the shattered economy ahe-
ad of keeping the Consumer Price
Index at the targeted 4%.
“It is in the growth outlook that
the MPC judged the risks to be the
gravest,” governor Shaktikanta
Das said in a televised address.
“The combined impact of demand
compression and supply disrup-
tion will depress economic activi-
ty. Judging that the risks to growth
are acute, while the risks to infla-
tion are likely to be short-lived,
the MPC believes that it is essenti-
al now to instil confidence and ea-
se financial conditions further.”
RBI's decision has been very timely
and made a lot of difference to the
sentiments which prevail and also
immediately makes affordable liqui-
dity available, finance minister Nir-
mala Sitharaman told DD News.
While investors appreciated the
MPC’s rate reduction and anticipated
more cuts in the future, concerns abo-
ut an economic contraction, slump in
corporate earnings and a delay in
normalisation of business activities
led to a selloff in financial assets, alt-
hough stocks recouped some losses.
The BSE Sensex fell 0.8% to
30,672.59, the benchmark 10-year
bond yields fell three basis points
to 5.74%. G-secs had dropped as
much as 11 basis points immedia-
tely after the RBI announcement.
The rupee weakened 0.44% to
75.95 against the dollar.
“The moratorium till August will
take care of the cash-flow disrup-
tions,” said Rajnish Kumar, chair-
man, State Bank of India. “Restruc-
turing will be required only after dee-
per clarity over the stress situation.
Only 20% of our customers have av-
ailed of the moratorium. Extended
moratorium is available for even tho-
se who have not availed of it earlier.”
The RBI could reduce rates even
more, said Barclays economist Ra-
hul Bajoria.
“The central bank still has room
to cut rates further, and we conti-
nue to expect another 50 bps of ra-
te cuts, most likely to be delivered
by end June-early July,” he said.
Repayment deferments and relaxa-
tions in sanctioning additional cre-
dit had been sought by industry.
Banks are bracing for a likely surge
in moratorium requests as industri-
al units either remain shut or are on-
ly beginning to return to normalcy.
“The MPC is of the view that the
macroeconomic impact of the pan-
demic is turning out to be more se-
vere than initially anticipated, and
various sectors of the economy are
experiencing acute stress,” the RBI
been compounded by the interac-
tion of supply disruptions and de-
mand compression.”
As growth contracts and credit is
rationed, the Indian agriculture
sector offers some hope. A greater
area has been brought under culti-
vation in the latest season, likely
leading to higher farm income.
“A ray of hope also comes from the
forecast of a normal southwest
monsoon,” said governor Das.
“Kharif sowing was higher by 44%
over last year’s acreage. Rabi pro-
curement is in full flow in respect of
oilseeds, pulses and wheat, benefi-
ting from the bumper harvest. The-
se developments will support farm
incomes, and improve the terms of
trade. These would also have a salu-
tary effect on food price pressures.”
The central bank also raised the
lending cap for business groups to
30% of a bank’s capital from 25% to
avoid distress in some firms in
conglomerates, but the issue of fun-
ding and moratorium for nonban-
king finance companies (NBFCs)
remained a question mark.
“The RBI should also consider ex-
tending this moratorium to NBFCs
for their repayment to banks, witho-
ut which the NBFC sector is facing
acute distress,” said Confederation
of Indian Industry director general
Chandrajit Banerjee. “Another mo-
ve the RBI should consider is to allow
one-time restructuring of loans to
relieve stressed businesses.”
 Economy: Macro, Micro & More 7
The Economic Times, Mumbai, Saturday, 23 May 2020

Moody’s Sees Economy Contracting This Fiscal Under Stress

Net enrolments
SCENARIO
could worsen
with April and
under EPFO down
Says steps unveiled under Covid-19 package unlikely to shore up growth in short term by 44% at 5.72 lakh
May data
Growth Shock The fiscal measures announced dia’s economic growth in fiscal serve Bank of India on Friday.
Moody’s estimated 0% Our Bureau by the government were unlikely 2020-21,” said Deborah Tan, Assi- The global ratings agency also New additions GOVT HAS
growth in FY21 on May 8 to offset lower consumption and stant Vice President, Moody’s. expected a stronger rebound in under ESIC extended
New Delhi: The Indian economy sluggish business activity resul- “While the impact of the policy the next fiscal year, compared to down by 30.6% time for filing
Covid-19 relief package will contract in the current fiscal ting from the extended lock- reforms will likely materialize its earlier estimate of 6.6%, on the at 8.21 lakh returns
unlikely to offset lower year, Moody’s Investors Service down, it said in a report released over the medium term, they are basis of a favourable base effect.
consumption & sluggish has projected, in a downgrade on Friday. unlikely to shore up short-term Although not specifying an exact NPS new THIS MAY
biz activity from its May 8 update which esti- “We expect the economic fallout growth,” with its direct fiscal number, Moody’s latest update is subscribers in change
mated no growth. from the coronavirus outbreak to impact at 1%-2% of GDP, Moo- in line with most global agencies March up by numbers in
IT EXPECTS STRONGER Moody’s said the steps unveiled weigh on already fragile house- dy’s said. in forecasting a negative outlook 46% at 87,877 coming months
REBOUND NEXT YEAR as part of the Covid-19 relief pack- hold consumption which, coupled Moody’s has, however, not taken this fiscal year after the announce-
ON FAVOURABLE BASE age will be unlikely to shore up with sluggish business activity, into account additional monetary ment of the Atmanirbhar Bharat Illustrations ANIRBAN BORA
growth in the short term. will result in a sharp decline in In- measures announced by the Re- Abhiyan package.

Short Takes AT REVIEW MEETING WITH TOP OFFICIALS OF ALL STATE-OWNED BANKS
New Formal Sector
Jobs Dip in March
 CCI Asks Zomato for Info
on Uber Eats Unit Buy
FM Urges Lenders to Ease Net EPFO enrolments
with retirement fund body EPFO
dipped to 572,000 in March from

Flow of Credit to MSMEs

NEW DELHI The Competition
Commission of India (CCI) has asked
food delivery platform Zomato to
provide information regarding its
acquisition of a unit of Uber Eats. An official of
CCI said the commission had sought the same
information from Zomato in February but did
not receive a response from the company. He
said the competition watchdog will take a call
on conducting an investigation after ex-
amining the information Zomato provides. The
transaction in question is the acquisition of the
Uber Eats India business by Zomato in January
in an all-stock deal valued at $350 million. The
deal saw Uber India get 9.99% stake in Zomato.
The acquisition was of strategic importance to
Zomato, which competes with Swiggy for a
share of the Indian food delivery business.
 NRAI: Interacted with FM
on Woes in Restaurant sector
NEW DELHI Apex industry body
National Restaurant Association of
India (NRAI) on Friday said its
representatives have interacted
with Finance Minister Nirmala Sitharaman to
highlight the core issues impacting restaurants
across the country due to the coronavirus-
induced lockdown. A four-member delegation
interacted with the finance minister through
video conference on Thursday to discuss
urgent industry-specific issues. All these issues
are largely around policy and liquidity support,
none of the suggested measures is expected to
put any major strain on the exchequer, NRAI
said in a statement.
 Major Ports See 21%
Asks bankers to
simplify process,
formats and
documentation
Our Bureau
New Delhi: Finance minister
Nirmala Sitharaman on Friday
prodded public sector banks to
expeditiously ensure easier flow
of credit to micro, small and me-
dium enterprises, and asked
them to simplify processes.
At a review meeting through
videoconferencing with top offi-
cials of all state-owned banks,
Sitharaman also took stock of
the banks’ readiness to operatio-
nalise announcements made
under the `20 lakh-crore Aatma-
nirbhar Bharat package that
was unveiled last week to coun-
ter the economic impact of Co-
vid-19 outbreak. The union cabi-
net on Wednesday gave its nod to
the key constituents of the pack-
age aimed at MSMEs, NBFCs
and farm sector including the `3
lakh-crore credit guarantee
scheme for the MSMEs sector.
“FM discussed as to how we
can take forward the MSME cre-
dit guarantee scheme,” Punjab
tor and CEO S S Mallikarjuna
Rao told ET after the meeting.
Indian Bank managing director
Padmaja Chunduru said the fi-
nance minister emphasised the
need for quick disbursal of addi-
tional loans to MSMEs, and ur-
ged bankers to simplify process,
formats and documentation.
The government is keen that
key constituents of the package,
particularly those for MSMEs,
non-banking financial compani-
es (NBFCs) and the farm sector,
can be operationalised soon.
The 100% guarantee scheme at a
concessional rate of 9.25% for
MSMEs under the `3 lakh crore
scheme was the second-biggest
component of the `20 lakh-crore
package announced last week.
Currently, the rate of interest on
loans given by banks to MSMEs
varies from 9.5% to 17%, depen-
ding on the risk perception.
The financial services depart-
ment tweeted, “Everyone alig-
ned on the need for quickly add-
ressing the needs of MSMEs &
other customers. Operational
details to be released soon."
Earlier in the day, the Reserve
Bank of India had slashed its
benchmark lending rate to his-
toric low of 4%.
“All the banks are very-very
optimistic about the schemes
that have been announced in
the recent past by the govern-
TAKING STOCK
FM NIRMALA SITHARAMAN MEETS PSB HEADS
She prods them to ensure credit flow to MSMEs expeditiously
IN FOCUS
XReadiness to operationalise
constituents of Atmanirbhar Bharat
XEasier credit flow to MSMEs
after ` 3 lakh cr credit guarantee
scheme
XOverall credit offtake from PSBs;
processes to be followed
STATUS UPDATE
PSBs SANCTIONED ` 6.68
lakh cr loans between March
1 and May 19
LOANS GIVEN to 59.57 lakh
accounts from MSME, retail,
agri, corporate sectors
Central Bank of India mana- and corporate sectors. A steady
ging director and CEO Pallav increase in credit availability for
Mohapatra said after the video- each of these vital sectors.”
conferencing with the finance PSBs also sanctioned `1.07
minister. “State-run banks’ lakh-crore worth of emergency
sanction in the Covid-19 period credit lines and working capi-
is more than the corresponding tal enhancements between
period last year, which was a March 20 and May 19, with
normal year,” he said. `25,527 crore of this amount be-
The finance minister had earlier ing availed by customers.
in the day tweeted, “Loans worth The meeting also took stock of
over `6.68 lakh crore were sanctio- interest rate transmission to
ned by PSBs during March 1 to borrowers by banks and pro-
May 19 for 59.79 lakh accounts gress on moratorium on loan re-
plummet 44%, new
additions under
ESIC decline 30.6%
Our Bureau
New Delhi: New formal sector
jobs plunged in March, when India
declared a nationwide lockdown to
stem the spread of Covid-19 virus.
Payroll numbers, tracked by addi-
tions to subscribers under social
security provider Employees Pro-
vident Fund Organisation, drop-
ped nearly 44% in March against
February.
Similarly, payrolls tracked by in-
creases to the safety net for blue-col-
lar workers, Employee State Insu-
rance Corporation, fell by 30.6% in
the same month versus February.
Both sets of numbers marked
the worst month for formal sector
job creation in the previous fi-
nancial year.
Additions to formal sector pay-
rolls may worsen in April and May
when the Covid-19 induced lock-
down completely impacted busines-
ses, resulting in severe job losses.
Besides, payroll data of recent
months may also change slightly
due to delays in data collection.
The payrolls data, released by the
Ministry of Statistics and Pro-
gramme Implementation on Fri-
day, showed that fresh enrolments
1.02 million in the previous month.
And, only 821,000 new members
joined the ESIC social security
scheme in March, against 1.18 mil-
lion in the previous month.
New subscribers under the Natio-
nal Pension Scheme -- across cen-
tral government, state govern-
ment and private sector employees
– however rose by 46.4% in March
to 87,877 against 60,002 additions in
February.
EPFO said the payroll data was
provisional since
updates to emplo-
yee records was a
Additions to
continuous pro-
formal sector
cess, running into
payrolls
may worsen subsequent
in April months.
and May “The govern-
ment announced
lockdown on March 24. According-
ly, ECR (PF returns) filing date for
March was extended to May 15,”
EPFO said.
For the whole of financial year
2019-20, net new EPFO subscribers
were at 7.86 million compared to
6.11 million during 2018-19.
Earlier, independent think tank,
Centre for Monitoring Indian Eco-
nomy, had said unemployment in
India touched a 43-month high in
March, at 8.7%.
With the lockdown coming into ef-
fect from March 25, the jobless rate
rose to double digits on a weekly ba-
sis, touching 23% for the week ended
April 5 compared to the average
6-8% before the crisis, CMIE said.

Contraction in April: Icra

NEW DELHI Impacted by COVID-19,
major ports in India witnessed a
steep 21% volume contraction in
April and bulk cargo throughput
may shrink up to 8% in the current fiscal,
ratings agency Icra said on Friday. It said the
container segment may witness a decline of
12-15% during the current fiscal. “The Indian
port sector has been adversely impacted due
to the COVID-19 outbreak and the subsequent
lockdown introduced by India and other major
economies. “The impact on domestic economic
activity as well as slowdown in global trade
has resulted in steep contraction in cargo
volumes at the major ports in April 2020, with
throughput decline of 21%,” Icra said.
National Bank managing direc-
‘Not Immune to Problems of India Inc’
Our Bureau
New Delhi: Finance minister
Nirmala Sitharaman has as-
sured the industry that the gov-
ernment was aware of its prob-
lems amid the Covid-19 pandem-
ic. “I want to make sure that
there is an understanding in the
industry that the government is
not immune to your issues and is
fully inclined to understanding
all your problems," Sitharaman
ment to support the economy,” from MSME, retail, agriculture payments. Over `37,000 cr Refunds Issued
to 1.7 m Taxpayers Since Apr 1
New Delhi: The government has issued more than `37,000 crore as
direct and indirect tax refunds to almost 1.7 million taxpayers in-
cluding trusts, micro, small and medium enterprises, proprietors-
said at a web on India's strengths to become manufacturing bases. hips, and partnerships since April 1.
FM added conference part of the global supply chain. "We have to identify the advan-
More than `26,000 crore was issued as income and corpo-
that the PM’s with members "Aatmanirbhar Bharat doesn’t tages that we had and find new
of industry mean we are curbing imports," ones. Aatmanirbhar Bharat of rate tax refunds, the Central Board of Direct Taxes said on
clarion call to
become chamber FICCI Sitharaman said. PM means getting our strengths Friday. Further, over Rs 11,000 crore was issued as goods
self-reliant on Friday. "We have to build our strengths back and build new strengths," and services tax and customs refunds, an official told ET.
did not mean The minister to become self-reliant but that the minister added, quoting “The refund process has been further expedited... since the finance
curbing said that the does not mean we are becoming Prime Minister Narendra Modi. minister’s announcement made in the Aatmanirbhar Bharat Ab-
imports or clarion call to protectionist," she added. Exalting FICCI for working for
hiyan in the last week,” CBDT said in a statement.
becoming become self-re- The government intends to the industry's cause and with the
The government paid `14,632 crore refunds to 1,581,906 I-T asses-
protectionist liant did not make India an integral part of government, the minister
mean curbing the global supply chain, even as stressed on the criticality of such sees and `11,610 crore corporate tax refunds to 102,392 assessees
imports or becoming protec- foreign companies look for alter- bodies during unprecedented between April 1and May 21, 2020. – Our Bureau
tionist, rather it meant to build natives to China for setting up times like the Covid-19 pandemic.

10 CENTRAL TRADE UNIONS UNITE

4 Firms in Race to Chalk
Out Startup Growth Plan
Grant Thornton India, EY, PwC and KPMG keen to
evaluate progress of Startup India programme
Our Bureau
A New Start
New Delhi: Grant Thornton India
LLP, EY, PwC and KPMG Advisory
Service are in the race to evaluate
the progress of the Startup India
Ministries Told to Pay Casual, Unions Urge PM to Halt
Contractual Staff for May Too
Labour Reforms, Selloffs
Our Bureau
months of nationwide lockdown
The previous order to Pay Day that threw millions out of job.
Criticising the `20 lakh-crore
Finmin issues order to all
pay salaries was ministries, departments
New Delhi: Ten central trade
unions have urged the Prime Mi-
fiscal stimulus announced in fi-
ve tranches by finance minister
EY, Grant effective till April 30 Asks them to pay contrac- nister to halt rampant labour
law reforms by some states and
Nirmala Sitharaman last week,
the trade unions said these only
Thornton, tual, casual & outsourced
staffers for this month privatisation of state-owned empowered corporates.
KPMG and Our Bureau companies, and sought cash In essence, the five tranches an-
PwC to
zahid

programme and attract investment Extends provision by support of `7,500 per household nouncement by
into the sector. The development co-
make New Delhi: The finance ministry of migrant workers for three your finance mi-
a month to May 31
mes at a time when startups are blee-
technical has asked all ministries and de- months. nister, instead of
presentation Previous order As public transport hasn’t Social distancing
ding due to business disruptions partments to pay contractual, ca- dated March 23 been restored to full capac- norms may restrict “We demand that you halt your providing any re-
caused by Covid-19 pandemic. sual and outsourced staffers for was effective ity, it may be unfeasible for all staffers from policy of wholesale privatisa- lief to several
ET reported in March that the DPIIT wants consulting agency to this month, extending a provision tion of PSUs and government crores of wor-
attract investments in startups till April 30 them to commute reporting to work
government plans to hire a con- to this effect by a month to May 31. departments through multi- Unions say king population,
sulting agency to chalk out a plan Since Startup India launch “Any contractual, casual and out- pronged routes like corporatisa- `20 L cr fiscal both in urban and
to attract investment in startups. source staff, who are required to The decision was taken to pre- down since March 25 have been tion, outsourcing, PPP (public- stimulus rural economy,
*as of Mar 1, 2020

on Jan 16, 2016, DPIIT has announced

The four firms “were found to be
qualified and accordingly it was
decided to call them for technical
presentation”, the Department for
Promotion of Industry and Inter-
nal Trade (DPIIT) said.
The consultant would define a “fu-
turistic vision” for timebound tar-
gets to improve India’s global stan-
ding and develop “measurable indi-
cators”, like investment in startups
and employment generation.
stay at home in view vent undue hardship to contractu- gradually lifted, public transport private partnerships) and libe- has, in actuality,
recognised 28,979* by FM only
of the lockdown or- al, casual and outsourced staff of has not been restored to full capa- ralised FDI (foreign direct in- come out as per-
startups der regarding Co- Social the government and related offi- city. Given that these staffers rely vestment),” the trade unions sa- empowered manent empo-
vid-19 prevention, distancing ces on account of the lockdown be- largely on public transport, it may id in a joint letter to Prime Mini- corporates werment of the
shall be treated as norms, other ing extended to May 31. still be difficult or unfeasible for ster Narendra Modi on Friday. big corporate and business hou-
‘on duty’ during lockdown The previous order dated March them to commute. They also observed nationwide ses, both foreign and domestic,”
such period of ab- restrictions 23, which covered all attached or Additionally, some of the staffers protests against anti-worker po- it said, adding that it only kills
Of these, 27,137
sence and necessa- may restrict subordinate offices and autonomo- may not be able to work daily given licies of states such as Uttar Pra- the basic human entitlements
ry pay/wages wo- all staffers us or statutory bodies of the govern- that offices can’t bring back their desh, Madhya Pradesh and Guja- of the working people.
startups employ around uld be paid accor- from ment, was effective till April 30. full workforce on account of social rat even as migrant workers are The unions also urged the PM
337,000 people dingly,” the mini- reporting Although blanket restrictions distancing norms and other lock- struggling to cope with extreme to ensure migrant workers re-
stry said in an order. to work from the first phase of the lock- down restrictions. economic stress after two ach home safely.

Food Prices Down Up to 75%

Madhvi Sally & Jayashree Bhosale
Agri Price Panel for Raising Kharif Crops’ MSP
THE PROPOSAL CACP recommends higher support rates for 17 Kharif crops, 2.9% hike for rice, `53 hike for paddy
Delhi|Pune: Wholesale prices of fruits, vegetables, wheat, rice,
pulses and sugar have fallen up to 75% since the start of the na- price for paddy is `53 per quintal Among pulses, highest increment
Rituraj.Tiwari@timesgroup.com more than last year. “The proposals has been recommended for urad,
tionwide lockdown due to subdued demand, particularly from
are under consultation with rela- The Fluctuation with a proposed rate of `6,000 from
wholesalers in other states, restaurants and New Delhi: The government is ted ministries like food before MSP FOR KHARIF CROPS last year’s `5,700 a quintal.
institutions, traders said. likely to raise the minimum sup- being sent to the cabinet for appro- CROPS 2019-20 PROPOSED FOR 2020-21 The government has been promo-
Wheat prices The prices are likely to remain weak till mid-June, port price of rice by 2.9% to `1,868 val. Normally, CACP’s recommen- ting cultivation of pulses and
Paddy (Common) 1815 1868
fell by 15% to industry insiders said, citing continued transporta- per quintal, and significantly raise dations are accepted fully,” said an oilseeds over foodgrains for the past
`1,950 per Paddy (Grade A) 1835 1888
tion issues with many state borders sealed, preven- the procurement price of some agriculture department official. few years. There has been record
100 kg in coarse grains and pulses. The price As per the proposal, the highest Bajra 2000 2150 production of foodgrains with each
Delhi with ting traders from travelling to other states to make Maize 1760 1850
of the better variety of rice (Grade increment has been proposed for successive year, leaving the govern-
poor demand wholesale purchases. “The number of buyers has A) has been proposed at `1,888, up nigerseed, an important oil crop, In ` per quintal ment granaries overflowing. With
Tur 5800 6000
for its by come down since the lockdown happened,” said from last year’s price of `1,835. whose MSP has been increased by over 71MT foodgrains in stock, the
products like Urad 5700 6000
Anil Malhotra, member of Azadpur Agricultural The Commission for Agricultural `755 per quintal to `6,695 per quin- government aims to augment the
flour, maida
Produce Marketing Committee (APMC). Costs and Prices (CACP) has re- tal. The floor price of cotton has Moong 7050 7196 production of edible oil to reduce
and suji commended higher support prices been proposed to rise by `260 per Groundnut 5090 5275 the import bill, which has swelled to
According to traders, fruits prices have also fallen
for 17 summer-sown, or kharif, quintal while the price for soya Soyabean 3710 3880 around `80,000 crore.
by an average 30% during this period with apple now selling at `45 crops. The cabinet will consider the bean has been raised by `170. “A significant rise is proposed in
a kg, mango at `40 a kg, and sweet lemon, watermelon and melon proposed new rates, officials said. “Among cereals, the highest Nigerseed 5940 6695 nigerseed, soya bean to encourage
at `15 per kg. Prices of wheat, rice and pulses have fallen about 15% Rice is a major kharif crop, acco- increase is proposed in Bajra Cotton (Medium Staple) 5255 5515 farmers to shift from food grains to
while sugar prices have dropped about 5%. unting for 40% of the planting in where price is likely to be `2,150 per Cotton (Long staple) 5550 5825 oilseeds. Among coarse cereals, bajra
the season. CACP’s recommended quintal, `150 more than last year. too got a boost,” said another official.
 8 Breaking Ideas
The Economic Times, Mumbai, Saturday, 23 May 2020

For its own political safety, if not for India’s economy, GoI must fully open the expenditure tap
Is This All That
RBI Can Do?
If banks do not lend, is RBI helpless?
Why So Afraid of Spending? waive interest when benefits could
It might be useful for the Reserve Bank of India (RBI) to land in the wrong hands; tax relief to
glance through the latest issue of the central bank’s We- a tiny group (which pays income-tax)
ekly Statistical Supplement. Since April 1, till April 24,
may politically backfire amid the
plight of migrant labourers. Evolutionary
non-food bank credit has declined by over `1 lakh crore. But such risks could pale in com-
This, after RBI force-fed them liquidity worth nearly `8 parison with the damages that a pro-
longed recession would wreck. There
Nirvana
lakh crore through an alphabet soup of special facilities. are already self-inflicted wounds: the
Given this hard reality, how can RBI continue with the Sugata Ghosh abrupt lockdown and its unplanned
ANDREW COHEN

pretence that lowering policy rates and magnanimously lifting; a flawed stimulus; the ‘no free The discovery that the univer-
t first, New Delhi struggled lunch’ comment by GoI’s chief eco- se had a beginning 14 billion

A
adopting an accommodative stance will help push mo- to square the circle to make nomic adviser; proposing harsh labo- years ago has dramatically
ney into the hands of India’s economic agents? Accept sense of the zeros in the eco- ur laws; the inability to help the ur- changed how we see our place
the reality that India’s banks, burdened as they are by nomic stimulus. After un- ban poor, and disturbing images of in the cosmos. We now know
convincing attempts, there families of labourers that remind that we are all part of a vast
bad debt and hobbled as they are by the fear of incrimina- are hints of unused ammunition that old-timers of newspaper photog- unfolding cosmic process that
ting investigations of credit decisions, are poor vehicles can be fired later to counter the trail raphs of refugees after the 1971Bang- had a beginning, and that is
of financial intermediation. RBI has to look at other me- of destruction that Covid-19 will lea- ladesh War. The sequence of events apparently going somewhere.
ve behind. It’s a marathon, not a has a takeaway for the powers that be: We know we are going some-
ans, while the banks mend. sprint, as a government adviser re- while Indians have learnt to live with where because the mysterious
Lowering the repo rate and the reverse repo rate by 40 minded — a reassuring message, as bumbling, corrupt governments, Revive dead demand beginning of this process beg-
basis points was the least the Monetary Policy Commit- long as men and businesses can to- they may be still unprepared for a go- an with a monumental, creati-
uch the finishing line with their bodi- vernment that appears insensitive. ople may not be an attractive politi- ding and easier regulations — steps ve leap from primordial noth-
tee could do, after acknowledging the probability of ne- es and souls together. That story, ho- cal option, but it can have a demand that would prompt banks to lend and ingness to the dramatic emer-
gative growth this fiscal. Implicit in this decision is a sta- wever, is not finding too many takers. A Scoring Subject spin-off due to the disproportionate businesses to borrow. Else, the cen- gence of energy and matter;
tement that has a bearing on the go- There’s outright disbelief among Against this backdrop, the upsides of share of a small army of taxpayers tral bank would be left to do a bad job and, with that, the beginning
obvious fault-finders as well as scepti- extra spending can outweigh the fe- in the final consumption. of an impossible task. of time itself.
vernment’s fiscal choices: this is not cism among admirers. The govern- ars. There is a difference between ‘so- None of the criticisms — by the Around 10 billion years later,
the time to worry about inflation, but ment’s stance, measures and fears ha- vereign rating’, which measures the Opposition, hard-nosed analysts or Fuzzy Signals the miracle of life emerged
to try and salvage growth from rubble, ve deepened the doubts. Besides the ability of a sovereign to pay back, rating agencies — would eventually There are other unanswered ques- from seemingly dead matter.
fiscal orthodoxy, the Centre is caught and ‘country rating’, which assesses matter if the economy recovers. tions. How was the `3 lakh crore gua- And then around four billion
to which Covid-19 and the lockdown in its professed preference to ‘endow- a country’s long-term potential. That is possible if the government gi- rantee for MSME loans calculated? years after that, the biggest
have reduced swathes of the economy. ment’ over the Congress legacy of ‘en- Even after a sovereign downgrade — ves growth a chance. But, today, the- The total Special Mention Accounts and most important leap for-
That is welcome. But what is the point titlement’ and doles that the ruling which makes foreign loans expensi- re is a cloud over the stimulus. SMA0 and SMA1 loan outstanding to ward occurred with the emer-
party believes to have kept the poor ve and weakens the currency as hot Check the details, for therein lies MSMEs is estimated at `10 lakh crore. gence of mind. The universe
of converting the interest accumula- stay poor. So, it bets on ‘atmanirbhar- money flows out — the country ra- the devil. On Friday, RBI cut rates, a If 20% of that amount is covered by developed the capacity to
ting over the six-month moratorium on loan servicing ta’ even when the house is on fire. ting can be preserved if a govern- move that will only make it easier for the guarantee, the total guaranteed think, to conceive, to imagine.
into a funded interest term loan, if it has to be fully amor- In politics, as in business, the big- ment pursues reforms, generates de- companies that are receiving eno- amount will not exceed `2 lakh crore The universe became able to
gest risk could well be not taking one. mand to pull an economy out of the ugh funds to get more money at a che- (assuming all loans turn delinquent bear witness to itself. And, our
tised this fiscal itself ? If economic growth is expected to Why is GoI so afraid to spend? Bloa- rut, and generously supports states aper rate. But it didn’t let banks rejig and every guarantee is invoked). Can brains have evolved a highly
be negative, how can companies generate enough reve- ted fiscal deficit, along with a higher to gain their trust to push through loans without categorising them as the guarantees be easily invoked? developed capacity for conscio-
nue and operating profits to pay off such dues in the cur- public debt to a shrinking GDP, could far-reaching changes in agriculture. non-performing assets (NPAs). In Will money received by non-banking usness and deep interiority.
trigger a downgrade of the sovereign That would be atmanirbharta in a the absence of regulatory forbearan- financial companies (NBFCs) from From both a spiritual and sci-
rent fiscal? The US Fed is using some special vehicles set rating to ‘junk’; since a sovereign (un- wider sense — instead of harbou- ce, no bank will restructure loan and the special RBI-backed fund be rolled entific perspective, we recogni-
up by the Treasury to buy bonds issued by companies. like a company) upgrade back to ‘in- ring an unrealistic expectation that add to its NPA that will eat into capi- over till the market thaws? se this universal creative un-
What prevents RBI from taking such an initiative and vestment’ grade can take a long time, companies with no earnings visibili- tal and profits. A company that recei- The clues to these puzzles lie in folding as a virtually infinite
the ‘junk’ tag may stick till the elec- ty would borrow even if there’s no ves a new loan will be first asked to New Delhi, not in the money markets process of becoming, with no
putting money in the hands of economic agents, instead tions in 2024; why subsidise loans and demand. Similarly, a tax cut to 1% pe- repay the earlier loan — leaving very of Mumbai. The answers are with end in sight. We recognise this
of being expansively accommodative towards banks little money for the borrower to grow the government that should be ready process is one unbroken, unfold-
the business. to spend, sooner than later — simply ing, interdependent, unimagi-
that find it hard to lend?
This brings back the old question: because no political party would like nably complex happening that
Yes, the liberalisation of credit for exporters and im- Even after a sovereign downgrade, the country rating why on earth would a company bor- to be remembered as a prisoner of ri- never ends and that perpetual-
porters is welcome. However, in a year in which world row if demand is missing? That mis- gid beliefs. ly reaches beyond itself.
can be preserved if a government pursues reforms, sing piece of demand would fall in Evolutionary nirvana is fully
trade will shrink, domestic demand is where the action generates demand, and pushes changes in agriculture place with higher government spen- sugata.ghosh@timesgroup.com awakening to the extraordinary
has to be. implications of this profound
and liberating truth.

Conditions the States Tying Centre and State Pockets Citings

stem, with nationwide reconciliation and state government bonds ranges
Government
Can Live With of unique, verifiable identity of the
beneficiary with Aadhaar-linking.
States should have no problem,
between 50 and 75 basis points (bps).
So, a better option would have been
for GoI to on-lend its market borro- & Innovation
Some states are reportedly upset over the conditions attached although seamless migration to the wings to states. True, on-lending to
new system would need joint efforts. states will push up the Centre’s fiscal
FILE PHOTO

to central permission for borrowing more than the standard JOHN GOODMAN ET EL
It is unlikely to entail any sizeable deficit. But the combined fiscal
3% of gross state domestic product (GSDP). They protest too extra expenditure, but would in- deficit of GoI and state governments As government increasingly ad-
much. An increase of 0.5 percentage point is unconditional,
Hema Ramakrishnan
volve organising supply chain and would not increase. The future fiscal opts and applies innovative tech-
while a further increase of one percentage point will be linked inventory management at all states Passing is the goal burden will also be lower due to a nologies, we all reap benefits
to the states signing on to four reform areas: the one nation, The Centre has been deft to allow and fair price shops to deal with the lower interest burden. down the road, many of which
states to borrow more to tackle the dynamic demand. empower local bodies. They have a States (and the Centre) must not are often unforeseen at first. In-
one ration card scheme; ease of doing business; reforms of po- Covid-19-instigated lockdown. It has Many MSMEs need support to huge potential for revenue genera- curtail development expenditure. It novations that are ubiquitous
wer distribution companies and fiscal empowerment of ur- linked enhanced borrowings to the survive and restart their operations tion in a rapidly urbanising India will weaken the economy that faces today, including the internet,
ban local bodies; and a final 0.5% of GSDP of incremental bor- states’ implementation of reforms to restore incomes and jobs. Ensu- that needs investment to support the risk of GDP contraction for the GPS, touchscreen display, sma-
rowing would be available after making specified progress in in four key areas: the ‘one nation, ring steps for ease of doing business growth. Property tax is one avenue, first time in 40 years. So, GoI must rt phones and voice-activated
one ration card’ scheme; ease of — such as giving permits, approval besides raising more revenue from loosen its purse strings without personal assistants, all stem
at least one of these reform areas. These are not onerous condi- doing business; reforms of power for land, electricity and water con- vacant land. Greater institutional worrying about the shackles of from government investments.
tions. What states must worry about is the cost of borrowing. sector distribution companies nections, or registering a business capacity for local bodies to issue fiscal responsibility. The non-go- Yet, this impressive legacy of
In the first bond auction in April this ye- (discoms); and reforms in urban — for existing and new entities is a municipal bonds will help. vernment sector’s investment government-driven innovation
ar, the states found their borrowing costs local bodies. Some states are miffed must. Manufacturing companies States, though, have little leeway in appetite is weak now, and that will often gets overshadowed by the
with these conditionalities, stating that want to relocate, or comple- fiscal expansion and cannot borrow enable GoI to borrow without crow- outdated technology and arch-
to be 50-75 basis points above the Centre’s. that they set a bad precedent. ment their operations in China, will even a rupee over and above their ding out funds for private invest- aic business processes that are
So, instead of states borrowing directly That is debatable. Diehard refor- do so in a country that is governed in budgeted target for borrowings ment, or putting an upward pressu- still embedded across the gov-
from the market, the Centre could do the mists would support a carrot-and- a business-like way. without the Centre’s approval. RBI re on prices. Raising public health ernment. Many federal agenci-
stick approach. Others would argue Reforms in power distribution has significantly raised the limits to infrastructure must be a priority. es still rely on legacy IT systems
borrowing and on-lend to the states. This
that states should not be burdened require states to muster the political the ways and means advances ‘We are now experiencing a whole and business processes to run
would lower interest outgo on the total with conditionalities at this point, courage to dispense with free power to (WMA), a temporary liquidity facility. new level of uncertainty, as ques- their day-to-day operations.
borrowing, reducing the future fiscal adding that their capacity to under- farmers and patronising power theft. Nevertheless, states have welcomed tions only the virus can answer Until recently, government ag-
burden. The Centre’s fiscal deficit would go up, sure; but the take reforms varies. The outstanding dues of distribution the Centre’s move to allow them to complicate the outlook,’ said US encies have been slow in adopt-
Covid-19 has brought to the fore the utilities across states are reported to borrow up to 5% of gross state domes- Federal Reserve chair Jerome ing emerging technologies and
combined fiscal deficit of the Centre and the states would re- commercial best practices, such
acute distress of migrant workers. have ballooned to `90,577 crore at the tic product (GSDP) compared to the Powell at a Fed Listens event earlier
main the same in the current year and be lower in the years GoI has offered free grains and pul- end of March. This is unsustainable. current limit of 3%. But borrowing this week. This holds for India, too. as cloud computing, artificial
ahead. RBI has now significantly raised the ways and means ses, but cash transfers would provide All consumers must be made to pay costs for states have risen sharply, and The Centre and states can regularly intelligence, robotic process au-
advance limits for states, which together account for about immediate succour. It has also pro- for the power they consume. a higher borrowing limit may not update people through Parliament tomation, human-centred desi-
mised to let them use their ration Successive finance commissions help fiscally weak states. on how monies will be raised, ex- gn and customer experience.
60% of India’s total government expenditure. However, states’ cards across states. This is doable have underscored the need for states GoI can borrow cheaper. Typically, penditure re-allocated and spent to In the government’s defence,
debt has been going up, the Ujwal Discom Assurance Yojana through a suitably designed IT sy- to levy realistic user charges and the gap between central government revive demand and growth. federal agencies have been slo-
(UDAY) proving a particular burden. wed by archaic procurement
UDAY has failed, and utility dues to power generators have systems.… Given the highly
sensitive nature of their data
steadily mounted. Power reforms and transparency in acco-

Building a New Real Estate Sector

and missions, they have legiti-
unting are imperative. So, states must end political patronage mate privacy and security con-
of theft and pick up the tab for any subsidised power they want cerns to sort out with many
to sell. This is no blackmail. commercial technologies.

accountability.
Traditionally, as the sector at-
tracted investor-buyers, scant
attention was paid to end-user
The pandemic has led to a global needs. False promises, project
enthusiasm for the animal kingdom delays and fund diversion became
rampant. Rera, effected in 2017, was
Malini Goyal a big move placing customers at the
its own pace seems to be working.
Take Rera — 31states and Union
territories have notified it already.
Ditto for the Land Acquisition Act,
which was passed in 2013, making
land acquisition — a pet peeve for
investors — costlier and messier.
GoI’s proposed amendment ran into
many see the emergence of speciali- From “The Pandemic is Turbo-
sed platforms to tackle distressed Charging Government Innova-
real estate projects. tion: Will It Stick?”
Implications of all this are signifi-
cant. The developer community is
likely to see a consolidation with
stronger survivors setting a new bar Chat Room
for the industry. With little capital

A Coronavirus Walk India’s real estate sector was alrea-

dy hurting. The Covid-19-instigated
On the Wild Side lockdown only made things worse.
Last summer, a Goldman Sachs
report forecast that 70% of Indian
In what some might interpret as the turning of the wheel of developers could go belly up due to
stress in the credit market. As
karmic consequence, the coronavirus pandemic, which rep- economic distress and work-from-
ortedly originated in a Chinese ‘wet market’ dealing in wild home (WFH) roils the real estate
life, has sparked widespread popular interest in the animal sector, many think lockdown would
kingdom. Wuhan, where the market that spawned the patho- take that number to 90%-plus.
India’s $180 billion real estate
gen is located, has been declared an urban ‘conservation sector is the second-largest employ-
park’ where the trade and consumption of exotic animals is er (over 70 million) in the country
prohibited. Meanwhile, in Hungary, a circus owner has gi- after agriculture, and contributes
ven a new turn to the traditional ‘Big Top’ by letting loose the over 6% to the GDP. Also, for most
Indians and businesses, real estate
show’s menagerie in a park so that visitors, seated in their constitutes a big chunk of costs,
cars, can view the animals doing what comes naturally rath- earnings, assets and investments.
er than performing tricks taught by human trainers. India’s long-pending land reforms
African countries for whom wildlife tourism is an impor- and rigid land laws have historically
deterred investors much before
tant revenue stream have innovated ‘sofa safaris’ based on Covid-19. Since 2015, GoI has un-
the premise that if you can’t go to the animals, the animals leashed many policy shocks and
will come to you via your TV set or smartphone. Broadcast resets like demonetisation, goods
and services tax (GST), Real Estate
live on social media, such excursions, filmed from an open
(Regulation and Development) Act
vehicle with a hand-held camera, help to generate funds th- (Rera), and the Insolvency and
rough donations and raise awareness of the importance of Bankruptcy Code (IBC). They were
conservation. And, in an ironic twist to the cautionary tale, painful but each served a purpose.
Demonetisation caused dispro-
a cartoon in a nature magazine shows a tigress with her cub
portionate pain but instilled fear of
watching two forest woodcutters, with the mom telling the black money and moderated prices.
cub, “Never go close to them — you could catch coronavirus.” GST brought in transparency and
centre and bringing in accountabili-
ty, financial discipline and rule-
based business, especially for buil-
ders and brokers.
For example, to curb fund diver-
sion by builders, project funds now
had to be parked in an escrow acco-
unt. But Rera was a partial success.
It had the bark. IBC gave it the bite.
For the first time in India’s real
estate sector, the balance of power
has tilted in favour of buyers. Er-
rant developers are being brought to
task with over 115 bankruptcy cases
filed with IBC and rising.
Land is a state subject. Regulating
it has always been difficult. The
Narendra Modi government’s
strategy to show the direction at the
Centre and letting each state choose
Keeping the big bad wolf out
stiff opposition. But progress is being
made. This March, the Supreme
Court removed some of the biggest
hurdles around land acquisition. And
now it is up to the respective state
governments to take the lead. Alrea-
dy, nine states, including Tamil Nadu
and Maharashtra, have made chang-
es to suit their own needs.
Amid all this, the Covid-19 pande-
mic is now unleashing some big
shifts and will probably reshape the
relationship India’s citizens have
with real estate. WFH will have deep
impact on workspaces even after the
pandemic has been tackled. Many
large firms like Infosys and Wipro
with large campuses may monetise
their real estate assets with sell-and-
lease-back deals, already a global
norm. Extended lockdown, shut
malls and a renewed thrust on
ecommerce has put many retail
developers in deep distress.
Residentials, already reeling under
oversupply and glut, too are seeing
some big shifts. Experts expect
millennials — whose ‘rent, not buy’
philosophy and lifestyle have fuelled
the sharing economy — to emerge as
a critical buyer segment. The pande-
mic will also force developers to
realign their product offerings to
suit WFH, such as houses with
home-office facilities, etc. At a time
when developers are going belly up,
appreciation in house prices, in-
vestors are fleeing, even as the per-
centage of end-use buyers goes up.
GoI’s thrust and incentives for affor-
dable housing will add momentum.
Despite the economic distress,
investors are still keenly looking at
niches that hold out hope and poten-
tial, like logistics, warehousing and
server farms. Emergence of SEA —
services, experience and amenities
— is making land commoditised and
services the big differentiator.
Already, a slew of joint ventures —
from Blackstone-Hiranandani,
Embassy Group-Blackstone, GIC-
DLF — are being forged in key realty
verticals that help improve stan-
dards in the sector.
Realty as an asset class in India has
been unique. Dominated by in-
vestors, opaque and an ideal pla-
yground for black money, it has
largely been a bet on capital appreci-
ation. India’s net rental yield at 2-3%
is one of the world’s lowest with
6-7% being the global average.
Hopefully, some of the big shifts
afoot will create a healthier real
estate ecosystem.
Anything that doesn’t kill you
makes you stronger. That might as
well be true for the real estate sector
going through a painful recast.
malini.goyal@timesgroup.com
Double Disaster
Hits Two States
Apropos the news report, ‘72
Dead in West Bengal: Mamata’
(May 22), people of West Bengal
and Odisha have had the dou-
ble disaster of a raging pande-
mic and a devastating cyclone.
Tapping their reserves of inner
strength and resilience, they
are sure to get over the twin cal-
amities. Now, it is a huge task to
run the relief centres without
overcrowding for the lakhs of
evacuees to be able to keep soci-
al distancing to contain Covid-
19. Meanwhile, scientists are
studying if Cyclone Amphan
and its destructive power are
linked to climate change.
G DAVID MILTON
Maruthancode, Tamil Nadu
A Corrigendum
In our page 1graphic on job loss-
es, and in the section on Inter-
net Businesses (May 22), the
text should have read ‘Oyo has
cut 5,000 jobs this year’. The
error is regretted. The correct
version has appeared online.
— Editor
 CONTRAPUNTO Never say 'no' twice, if you mean it NASSIM
NICHOLAS TALEB Around the World 9
The Economic Times, Mumbai, Saturday, 23 May 2020

NEW DRAFT SECURITY PROPOSALS UNVEILED

QUICK HITS
Sons of Murdered Saudi
Journalist Khashoggi
‘Forgive’ Killers
Riyadh: The sons of murdered
Saudi journalist Jamal Khashoggi
said on Friday they “forgive” the
killers of their father, a move
analysts said effectively grants
clemency to five convicts on death
row. Khashoggi was killed and
dismembered at the kingdom’s
consulate in Istanbul in October
2018. His family’s pardon is
expected to spare the lives of five
unnamed people sentenced to
death over the murder in a Decem-
ber court ruling, which was lam-
basted by human rights groups
after two top aides to the crown
prince were exonerated. AFP
llllllllllllllllllllllllllllllllllllllllllllll
US Navy Gets Fourth
Leader in Six Months
Washington: The US Senate on
Thursday confirmed the navy’s
fourth new leader in six months.
Kenneth Braithwaite, a retired
rear admiral who currently serves
as the US ambassador to Norway,
was approved as the next secreta-
ry of the navy in the upper cham-
ber in a voice vote. During his
confirmation hearing earlier this
month, Braithwaite made a point
of emphasising his smooth rela-
tions with the administration. He
replaces acting navy secretary
James McPherson. AFP
llllllllllllllllllllllllllllllllllllllllllllll
UK to Quarantine Overseas
Arrivals from June 8
London: Britain will introduce a
quarantine for for travellers
arriving from overseas from June
8, interior minister Priti Patel said
on Friday. All international arri-
vals, including returning Britons,
will be required to self-isolate for
14 days and provide details of
where they will be staying to the
authorities. She said those who
breach the quarantine in England
could be fined £1,000 ($1,218), and
that spot checks would be carried
out by health and border officials.
The quarantine measures will not
apply to those arriving from the
Irish Republic, and there are also
exemptions for freight drivers,
medical professionals and seaso-
nal agricultural workers. Reuters
llllllllllllllllllllllllllllllllllllllllllllll
Facebook Plans to Hire
More Remote Workers
Facebook plans to hire more
remote workers in areas where the
company doesn’t have an office,
and let some current employees
work from home permanently if
they’d like to. CEO Mark Zucker-
berg said the company plans to
“aggressively open up remote
hiring” starting immediately with
the US, particularly for enginee-
ring talent. Based on internal
employee surveys, he believes
remote workers could make up as
much as 50% of Facebook's work-
force in the next five to 10 years.
Facebook had more than 48,000
global staff at the end of March.
Bloomberg
Beijing may Base Security
Agencies in Hong Kong
China measure a ‘death knell’ for Hong Kong autonomy: Pompeo
Hong Kong: A proposal to impose
national security laws in Hong
Kong could see mainland intelli-
gence agencies set up bases in the
global financial hub, raising fears
of direct enforcement by Chinese
authorities in the city and the pro-
spect of fresh protests.
The details were unveiled on Fri-
day, a day after Beijing proposed
the new controversial national se-
curity legislation that critics see as
an historical turning point for Chi-
na’s freest city.
US Secretary of State Mike Pom-
peo on Friday called the legislation
disastrous and said it could have an
impact on the favourable economic
treatment the territory receives
from the US. “The United States
condemns the ... proposal to unila-
terally and arbitrarily impose na-
tional security legislation on Hong
Kong,” Pompeo said.
He said the decision to ignore the
will of the people of Hong Kong wo-
uld be a “death knell for the high
degree of autonomy Beijing pro-
mised for Hong Kong” under a de-
cades-old agreement known as the
Sino-British Joint Declaration.
The security law plan hit financial
Japan, BOJ Pledge Joint
Action to Keep Cos Afloat
Japan’s government and its cen-
tral bank issued a rare joint state-
ment on Friday, vowing to coopera-
te further on aggressive measures
to fund struggling companies and
support a battered economy.
On a day when inflation fell below
zero for the first time in more than
three years, Prime Minister Shin-
zo Abe’s administration and the
Bank of Japan focused on battling
the economic impact of the corona-
virus while putting the risk of de-
flation on the back burner for now.
First the BOJ unveiled an additio-
nal 30 trillion yen ($279 billion) of
loan support for small businesses
at an emergency meeting that ma-
kes its package of virus measures
roughly equivalent to the annual
lending of one of the nation’s three
mega banks.
Then came the joint statement
pledging BOJ cooperation with the
government after a meeting betwe-
en governor Haruhiko Kuroda and
finance minister Taro Aso.
“The Bank of Japan and the go-
vernment must send the message
HK pro-democracy lawmakers
protest during a House Committee
meeting on Friday
markets on Friday, due to concerns
the semi-autonomous city’s status
as a financial hub was at risk, with
Hong Kong stocks selling off as Chi-
na’s parliament sat to discuss the
new law. The Hang Seng index clo-
sed 5.6% down, the largest daily
percentage drop since July 2015.
Hong Kong leader Carrie Lam sa-
id her government will “fully coo-
perate” with the Chinese parlia-
A barber shop open for business in Kyoto
to the world that we are coming to-
gether as one,” said Aso. Central
banks and governments in some co-
untries simply weren’t on the same
page and needed a reminder of the
benefits of joint action, he added.
“Even if Japan manages to escape
this predicament by itself, it’ll still
suffer if other nations can’t, and
exports and inbound tourism can’t
grow,” Aso said.
Combined with an earlier lending
facility and its buying of corporate
bonds and commercial paper, the
BOJ said its coronavirus response
measures now total 75 trillion yen.
Bloomberg
1. South Korean Buddhist groups hold a lantern procession in accordance with the government’s quarantine rules in
Seoul 2. Russian President Vladimir Putin attends a tele-conference on the virus situation in the country 3. The
Genova Aquarium in Liguria will reopen on May 28 after over two months of lockdown 4. American flags fly at
half-staff at the Washington Monument for a three-day period in remembrance of coronavirus victims 5. Craftsman
1 Genny di Virgilio applies final touches to statuettes of doctors cradling Italy
ment to complete the legislation,
which she said will not affect
rights, freedoms nor judicial inde-
pendence.
“It is starting to look like a US-
China summer of discontent in
the making,” said Stephen Innes,
chief global market strategist at
AxiCorp.
DRAFT PROPOSAL
In his annual report to the Chinese
parliament, Premier Li Keqiang
said China will establish a “sound”
legal system and enforcement me-
chanisms to ensure national secu-
rity in Hong Kong and Macau, its
other semi-autonomous city.
The proposed legislation for
Hong Kong requires the territory
to quickly finish enacting national
security regulations under its mi-
ni-constitution, the Basic law, ac-
cording to a draft seen by Reuters.
The document said the laws will sa-
feguard the central government’s
“overall jurisdiction” as well as
Hong Kong’s “high autonomy”.
“When needed, relevant national se-
curity organs of the Central People’s
government will set up agencies,” in
Hong Kong to safeguard national se-
curity, the draft said. Reuters AP
Oxford Expands Vaccine
Trial to Older Adults, Kids
Phase 3 will assess how vaccine works in a
large number of people over the age of 18
London: Oxford University said on
Friday it is recruiting thousands of
volunteers for the next phase in
human trials of a coronavirus
vaccine that it says are “progressing
very well”.
Up to 10,260 adults and children
will be enrolled as it expands the
age range of people given the
specimen vaccine and involves a
number of partner institutions
across Britain.
The university began initial trials
in April, administering more than
1,000 immunisations, with follow-
up currently ongoing, it added. “The
clinical studies are progressing very
well,” Andrew Pollard, head of the
Oxford Vaccine Group, said in a
statement.
“We are now initiating studies to
evaluate how well the vaccine
induces immune responses in older
adults, and to test whether it can
2 3
Pak Plane Carrying 99 Crashes
in Karachi, Many Feared Dead
Pilot sent Mayday
call about lost
engine: Minister
Karachi: At least 40 dead bodies
have been recovered after a Pakis-
tani plane crashed with nearly 100
people on board in Karachi on Fri-
day, according to rescue officials,
with dozens more feared dead.
The Pakistan International Air-
lines (PIA) plane was close to lan-
ding when it came down among
houses, sparking an explosion and
killing several people on the gro-
und. “We have recovered 40 plus
bodies so far,” major Mohammad
Mansoor from the Pakistan Rang-
ers, who was overseeing the re-
scue operation, told AFP.
Faisal Edhi, who heads the chari-
table Edhi Foundation that was as-
sisting rescuers, gave a slightly
higher figure saying at least 42 de-
ad bodies had been recovered from
the area.
“As per our estimates there are
around 50 more dead bodies under
the debris,” he said in a live televi-
sion broadcast.
At least two passengers survived
the crash, according to Syed Nasir
Hussain Shah, the information
minister in Sindh province where
Karachi is located.
Plumes of smoke were sent into
provide protection in the wider
population.”
However, Pollard told BBC radio it
was “not possible to predict” when
the potential vaccine might be
ready for the wider population. “It is
a very difficult question to know
exactly when we will have proof
that the vaccine works,” he said.
Much depended on having eno-
ugh people who had been exposed
to Covid-19 in the trial’s next
phase, he added.
The university and pharma giant
AstraZeneca have signed a deal
which could see up to 30 million of
100 million doses for the UK market
available by September.
Oxford’s effort involves its multi-
disciplinary Vaccine Group, set up in
1994 to study new and improved
inoculations, and the Jenner In-
stitute, which works on both human
and livestock diseases. It is based
on a chimpanzee adenovirus — a
4 ment issued by the Biden cam-
Rescue workers at the crash site in a Karachi neighbourhood on Friday
the air as rescue workers and resi-
dents searched the debris for sur-
vivors and firefighters tried to ex-
tinguish the flames. An AFP re-
porter witnessed charred bodies
being loaded into ambulances.
Sarfraz Ahmed — a firefighter at
the crash site — told AFP the nose
of the Airbus A320 and the fusela-
ge had been heavily damaged by
the impact, adding that rescuers
had pulled four bodies from the
wrecked aircraft, including some
who were still wearing seatbelts.
Seemin Jamali, a director from
Jinnah Post Graduate Medical
College in the city, said eight dead
and 15 injured people had been
People waiting to be allowed into a
supermarket in Tangerang, on the
outskirts of Jakarta on Friday
common cold virus —which has
been genetically changed to stop
Covid-19 replicating in humans.
The first phase of trialling in-
volved 160 healthy volunteers
between 18 and 55. The next stage
of the study will include older
adults and children between the
ages of five and 12.
A third set of trials will then assess
how the vaccine works “in a large
number of people over the age of 18”.
The university’s potential vaccine
is one of only eight globally to have
started trials, according to the
World Health Organization, which
counts 118 different projects under-
way in total. AFP
5 unity task forces. Look forward
brought to the facility. “They were
all from the ground, no (plane)
passengers have been brought he-
re,” she said.
The plane had developed a tech-
nical fault, interior minister Ijaz
Ahmad Shah said, adding that the
pilot issued a mayday call after the
craft lost an engine.
PIA spokesman Abdullah Hafeez
said there were 91 passengers and
seven crew on board the flight,
which lost contact with air traffic
control just after 2.30pm (0930
GMT).
An aviation authority spoke-
sperson said the number of crew
on board was eight. Bloomberg
6 Indian-Americans
Named to
Biden-Sanders
Unity Task Forces
Washington: Six prominent
Indian-Americans from diver-
se fields have been named to the
Biden-Sanders unity task for-
ces announced by former Vice
President Joe Biden, who is the
presumptive presidential no-
minee of the Democratic Party.
Congresswoman from Seattle
Pramila Jayapal and former
surgeon general Vivek Murthy
have been named co-chairs of
the Health Care Task Force.
The unity task force is a result
of senator Bernie Sanders’ en-
dorsement of the Biden campa-
ign.
Climate change activist Var-
shini Prakash, 26, from Boston
is the youngest member of the-
se task forces alongside repre-
sentative Alexandria Ocasio-
Cortez, 30, and environmental
justice advocate Catherine Flo-
wers, 58.
Executive director of the Sun-
rise Movement, an organisa-
tion focused on climate change
among young people, Prakash
will serve on the Climate
Change group. Former secreta-
ry of state John Kerry is co-cha-
ir of this task force.
Legal luminary Chirag Bains
has been named co-chair of the
Criminal Justice Reform Task
Force along with former acting
assistant attorney general Van-
ita Gupta, according to a state-
paign.
Economist and former lobby-
ist Sonal Shah has been named
to the Economy Task Force.
“Honoured to be serving on the
to winning in Nov!” she said.
PTI

FLU BLUES: TIPS, TRIVIA & TRENDS YOUR DAILY DIET OF FUN AND FACTS Crossword 7728

1 2 3 4 5 2 Odd features of dry skier’s

Bryant Items Fetch
Premium Prices at
Jury Charges Man Czech Museum Opens 6 7 8
embankment (4)
3 Determined to employ hus-
band for all that (6)
For Threatening
Face Mask Exhibition
4 Brief champion (8)
Auction 5 Look into home counties
to Spread Virus 9 10 bush (4)
7 A broadcast covers very loud
In a sign that the coronavirus party (6)
A Florida man accused of
will one day be history, the 11 12 13 14
8 Religious place near Salford
coughing on and spitting at trained Asiatic learner (14)
Czech National Museum is
police officers while claiming 12 Ideal position of hotel in
opening an exhibition of face Mediterranean resort (5)
to be infected with the
masks worn to protect against 14 Answer with unknown Isle of
coronavirus was indicted on a 15 16 17
the infection. “There is a huge Man saying (5)
A Hollywood moment for NBA legend federal terrorism charge. A 16 He kills when special troops
amount of products today; it is 18
Kobe Bryant proved a big draw in a federal grand jury in Tampa go wrong (8)
tough to say what should be 18 It’s originally made of stones,
Beverly Hills auction of sport returned an indictment on 19 20 21
left for future generations. all in colour (6)
memorabilia, his handprints in concrete Wednesday charging James
With masks, it is clear cut, 21 Tramp’s correct about out-
selling for $75,000. Julien’s Auctions Jamal Curry, 31, with skirts of Dorking (6)
they are a symbol of the
said the handprints were tests that were perpetrating a biological 22 23 24 25 23 Witty remark about Lebanese
situation,” said curator Mira
made by Bryant in 2011, when he weapon hoax, according to port (4)
Burianova. The small exhibit 25 Fifth one in German vessel (4)
became the first athlete to leave his court records. He faces up to 5
in the National Museum in
prints alongside those of some of years in federal prison if 26
Prague’s Wenceslas Square
Hollywood’s biggest stars in the convicted. Curry’s attorney,
was selected from hundreds of masks sent in by the public. They include folk
forecourt of the Chinese Theatre on Samuel Landes, said in an SOLUTION TO No 7727:
motifs, fun designs and the national flag. There is one made by children with ACROSS: 1 Imperceptive. 8 Im-
Hollywood Boulevard. The item fetched email that prosecutors are
autism. The exhibition opens on Monday, just as the government relaxes its peril. 9 Took off. 11 Millimetre.
more than 18 times its presale estimate stretching a law meant for
mask policy. People will no longer have to wear them outdoors but must still do ACROSS what (6) 12 Deli. 14 Specimen. 16 Sextet.
of $4,000-6,000. Other highlights of the terrorists to cover a run-of- 6 Music Haydn’s butler arranged to 19 Idiot controls group property (6) 17 Dew. 19 Impend. 21 Tolerate.
so on public transport and in public buildings including the museum. Reuters
Julien’s auction included a full uniform the-mill police encounter. St. welcome Her Majesty (6,3,5) 20 Choose one film for confident type (8) 24 Earl. 25 Weedkiller.
Petersburg police officers 9 Short bloke devours a hot drink and 22 Animated film following Tsar’s 27 Yielded. 28 Orifice.
worn by Bryant during the 1999-2000 cake (6) daughter when exiled (8) 29 Quintessence.
NBA Finals and embroidered with an responded to a domestic 10 Woman left gold into illegal dealer (8) 24 Divulge what Salome did several DOWN: 1 Impulse. 2 Percipient.
official NBA logo under a black band violence call involving Curry
on March 27, according to
Terrier Uggie from The Artist Crowned 11 Chanted greeting heard around har-
bour and port (8)
times (6)
26 Develop tract in a region, one that’s
3 Relieved. 4 Entire. 5 Troy.
6 Violent. 7 Dismissively.
worn in remembrance of Wilt
Chamberlain that sold for $43,750 — court documents. During his Best Cannes Movie Mutt 13 A duke touring Hampton Court fea-
ture staggered (6)
unknown (5,9) 10 Faint-hearted. 13 Television.
15 Net. 18 Wondrous.
more than four times its estimate of arrest, Curry declared that he
Uggie, the Jack Russell whose antics in 15 Divine food close to impressing court (6) DOWN 20 Parvenu. 22 All-time.
$10,000. Bryant-related items realised was infected with Covid-19 17 The twins enrage minister some- 1 Room to relax lung cavity? (9,5) 23 Needle. 26 Eden.
Oscar-winning film The Artist stole
$202,590 at the Julien’s auction, where and coughed on an officer’s
viewers’ hearts, was crowned Palm Dog of ©The Daily Mail
one 2006-07 season game-worn jersey arm, police said. AP
Palm Dogs on Friday, singled out as the
sold for $22,400. AFP best canine winner in the award’s 20-year
history. “Uggie would be very proud of
that,” said his trainer Omar von Muller, as
Trump says He Finally Wore a Mask he accepted the trophy collar from his
President Donald Trump said on Thursday home in Los Angeles, flanked by Uggie’s
he’d finally overcome his aversion to wearing body double in the film, Dash. Uggie, who Dilbert by S Adams
masks against the coronavirus — yet he didn’t in 2011 won the Palm Dog award for best
want be photographed. Touring a Ford auto performance by a dog in a movie screened
factory in Ypsilanti, Michigan, where workers at Cannes, died in 2015 aged 13. He hit the
have converted to building respirators and big time after starring as French actor Jean
other medical equipment for fighting Dujardin’s cute sidekick in the black and
Covid-19, Trump held up a mask and declared white film, which tells of a silent star
he’d covered his face earlier. “I had one on whose career dives as talking pictures take
before. I wore one in this back area but I didn’t over Hollywood. Uggie became the first dog to leave his prints beside the likes
want to give the press the pleasure of seeing of Marilyn Monroe and Clark Gable in front of Hollywood’s Grauman’s Chinese
it,” he told reporters and photographers Theatre, and appeared on television chat shows as well as attending the Golden
covering his visit on Thursday. AFP Globes and Oscar ceremonies. Reuters
 10 Life In The Time Of Covid-19
The Economic Times, Mumbai, Saturday, 23 May 2020

A Human History of Stains

Vikram Doctor Some people glory in stain removal. venerate the Shroud of Turin, a
Lockdown Blues
Hurt King of Fruits
They swear by common home supplies, cloth said to be stained by being used
like vinegar or milk, while others have to wrap the body of Christ. After
Jayashree Bhosale

C
heryl Mendelson is a professor of phi-
losophy who has also written fascinat-
ing books on housework. They mix
practical tips with sage reflections,
making them particularly useful for
our current situation where lockdown stress
combines with the need to clean floors and wash
clothes.
One example is when Mendelson discusses
stains in her book Laundry: “Stains are not dirt;
they are inadvertent dyeings.” Dirt should be at-
tacked but with stains “the most important skill
you can acquire is the ability not to be bothered
by the small imperfections.” Only if you can’t
achieve acceptance should you try removing it –
and then she tells you how.
Mumbai industrialist Sanjay Jindal seems dis-
inclined to follow the path of stain acceptance.
Earlier this year, a guest at his housewarming
party spilled red wine on a white sofa. Jindal
checked CCTV footage, identified the culprit and
sent the lady a bill for`
`2.3 lakhs for the cost of re-
upholstering the sofa.
Such a severe reaction feels almost interesting
now: imagine a world where wine stains still mat-
ter! Many might now just be happy to have wine,
with stain risk or not. And yet enforced home iso-
lation is the time to consider whether to accept
stains or become engrossed with eradication?
a fearsome arsenal of special-
ised chemicals. Few are likely
to follow the Romans who used
urine to remove stains. Urine
decomposes to leave ammonia
which Mendelson notes
works well against certain
stains, like fresh perspira-
tion marks.
An article in the American Journal of
Nursing, from 1920, advises on using
common hospital chemicals to keep
uniforms pristine. Ammonia water removes io-
dine stains, while silver nitrite is removed by
mixing mercury and ammonium chloride
which, the article warns, is poisonous. Even
more lethal potassium cyanide removes indeli-
ble ink, which makes one wonder if removing
stains was really worth the risk.
But such thinking is linked to easy availability
of clothing. When new garments are easily pro-
cured, why bother removing stains? This was
not the case in past times, when people had fewer
clothes. Stains were serious then and early
household manuals are full of advice.
Flora Annie Steele and Grace Gardiner, in their
Complete Indian Housekeeper and Cook, use
chemicals – “mix 2 oz rectified spirits of turpen-
tine with 2 drachms essential oil of lemon” – but
ZAHID
also the hard labour of Indian servants.
Grease stains had to be rubbed with bread and
ink stains first with hot milk, then repeated hot
water scrubbing: “Time and patience must be
plentifully used.” Ultimately, they admit, the so-
lution might be “to re-dye the injured portion”.
Perhaps the ultimate example of accepting
staining is a colour called isabelline. This is a
brownish-yellow colour said to be named after a
16th century Spanish princess who was besieged
in her city. She vowed not to change her white un-
derclothes until the siege was lifted, but since
this took three years the fabric became quite dis-
coloured. Rather than remove the stain, it was
accepted as the new colour.
Some stains are carefully preserved. Catholics
President Kennedy’s assassination
his widow refused to change her
blood stained dress when she wit-
nessed the swearing in of his suc-
cessor: “Let them see what they
have done,” she said.
Another President, Bill Clinton,
was almost impeached on the evi-
dence of the semen stained dress
that Monica Lewinsky had care-
fully preserved. Stains have featured
in innumerable criminal cases, real and
fictional, like Sherlock Holmes’ “The Ad-
venture of the Second Stain.” There is even a
crime series called Stain Busting Mysteries
where the detective is a laundromat owner who
uses her expertise with stains to solve cases.
In the real world such cleaning services have
made stains seem less important: we leave stain
removal to their, hopefully, expert hands. Dry
cleaning dates from around 1821 when Thomas
Jennings became one of the first African Ameri-
can men to be granted a patent, for his ‘dry scour-
ing’ process. It was a symbolic achievement not
least because of how often race was described as
a stain. Philip Roth titled one of his last novels
The Human Stain for the story it told of a man
who had tried to conceal his African American
origins.
The Alphonso, the uncrowned king of
mangoes, is having a rather rough
reign this Indian summer.
An unprecedented lockdown stalled
its traditional late-spring journey from
the famed Western Ghats to the coloni-
al-era Crawford Market, or downtown
Mumbai’s answer to New Covent Gar-
den, where the best of the Alphonso
breed ultimately ends up. Also, an ex-
tended spell of rains last monsoons
stretched the winters in the peninsula,
causing such crop shrinkage that trad-
ers in the prized cultivar don’t expect to
recoup their investments this year.
Prashant Sonavane is one such small
trader, represen- tative of many that
take on annual lease these or-
chards in the Kon- kan, home
to the world-fa-
mous mango varie-
ty named after the
16th century Portu-
guese empire build-
er Afonso de Albu-
querque.
When the first phase
of the lockdown was an-
nounced, about 10,000
Covid-19 in India.
Mango processors, too, are faced with
difficulties.
“Our customers, the largest MNCs
and big Indian companies that make
mango-based cold drinks, have said
that they will be able to buy just about
50% of their normal requirement of
the mango pulp as they could not liq-
uidate their previous year’s stock,”
said a top executive at one of India’s
largest mango processing compa-
nies.
THE COVENT GARDEN SHELVES
India exported fresh mangoes worth Rs
406.5 crore in 2018-19 with the UAE, UK,
Oman, Qatar, and the US as the top five
export destinations. The US sends its
own inspector to the export facilities
in India. This year, the lockdown
ensured that wouldn’t happen.
"There was confusion af-
ter the lockdown was
announced, which
stopped the oper-
ations at

The Trees of Our Lives

Sometimes, the greatest journeys occur
when we stand still. This is an important
lesson from one of nature’s miracle-work-
ers – the tree. Today, as the world comes to a
standstill, trees offer us amazing journeys,
of insight, learning and memory. In heed-
ing trees, we enrich ourselves immeasur-
ably. Much of the current situation the
world faces now comes from its growing
disconnect with – and disregard for – na-
ture, its unbounded beauty and its clear
boundaries, between species, ecosystems
and human needs versus
greed. Indeed, in humanity’s
arrogance over ‘mastering’
the natural world, we have
somewhere forgotten that we
are simply one part of it.
This moment offers us a valuable oppor-
tunity to reacquaint ourselves with na-
ture’s tapestry, starting with an ideal guide
– trees. As Times Evoke’s global experts
point out, trees are among the world’s most
astonishing marvels of science. A single
tree gives two humans clean air to breathe
while forming a home for multiple species.
Trees cool the air – studies find one tree can
have the cooling effect of 10 air-condition-
ing units – and endow it with moisture, mit-
igating heat. A tree removes harmful atmo-
spheric chemicals and replen-
ishes groundwater supplies.
Through carbon sequestra-
tion, trees absorb carbon diox-
ide, storing this away for years,
while protecting the very ground we stand
on, preventing soil erosion in floods and
storms. Wondrously, trees do all this as sen-
tient beings, communicating with other
trees, forming a secret underground world
of networks which ‘speak’. A global plant-
ing of trees, scientists say, can even power-
fully mitigate climate change, removing
upto two-thirds of the pollutants induced
into Earth’s atmosphere by human activ-
ity.
Times Evoke thereby invites you on a fas-
cinating journey to meet the tree, to learn
its science and mysteries, and to recall
your own life’s trees – a tree that thrilled
you with its blossom or fruit. A tree that
sheltered you in a storm. A tree that
calmed a storm inside you. A tree that
might not live anymore, unless you help
protect it. For, with every conserved and re-
juvenated tree, we are simply protecting
our only home, Earth, healing it, so it nur-
tures our loved ones.
boxes of the juiciest Al-
phonso mangoes were
ready to be sent to the city
markets from the Konkan or-
chards. Only a fraction of those
were ultimately sold – not enough
to recover Sonavane’s lease costs.
Many traders whose shops are in the
containment zone, had no business. In
my 52 years in the family business of
mangoes, that started in 1936, this
was one the worst years I have seen,"
PL Khaire, a veteran mango trader
from Pune.
"Had the arrival of the first fruit
not been delayed, I could have
been able to sell them in February
before the lockdown was an-
nounced and reduced some loss-
es," said Sonavane.
THE WEATHER PLAYS FOUL
The king of fruits usually begins ar-
riving in the cities from February. As
the summer progresses from the
southern peninsula to the northern

Why Don’t We Hear What’s Blowin’ in the Wind?
Silk Stalkings
Reshmi
Dasgupta
My only recollection of a cyclone was
in Calcutta, probably1973. The howling
of the wind was matched by the blind-
ing, razor-sharp sprays of rain and I
watched stupefied as windows blew off
from the house opposite. Once the wind
and rain finally died down, the destruc-
tion became clear: debris, submerged
cars, bent lamp-posts, and dozens of
mangled trees. Nature’s anger is still
vivid, 47 years later.
Cyclone Amphan this week was
much, much more devastating as it bar-
relled straight into Bengal at 185kmph,
tearing through the coastal mangroves
and precious rural farmland before
slamming into Kolkata. I experienced it
only through social media posts and
short videos shot by residents in small-
Amphan is further evidence that Nature is howling at us to change our destructive ways
er homes/highrises..
Unlike Cyclone Bhola’s combined
death toll of 5 lakh on both sides of the
Bengal border in 1970 and the 1999 su-
per cyclone that killed nearly 10,000 in
Odisha, we have got our act together
now so loss of human life has been
greatly reduced. Evacuation of inhab-
itants and their relief and rehabilita-
tion are also fairly efficient now. But
humans are not the only living things
decimated by Nature’s blind fury.
Livestock and poultry, and even dogs
and cats—pet and stray—live around
humans. And then there’s wildlife. The
Sundarbans National Park website, for
example, lists 58 species of mammals
from tigers to otters, 55 types of reptiles
including crocodiles, turtles and
snakes, 248 bird species and marine life
such as dolphins, sharks and stingrays.
How many weep for those lives lost to
cyclones?
Almost exactly a year ago—in early
May—Cyclone Fani devastated Od-
isha, including the small, coastal Ba-
lukhanda Wildlife Sanctuary, home to
spotted deer, jackals, hyenas, jungle
cats and monitor lizards. Thank good-
ness many of them had heeded their in-
stincts and fled inland but their storm-
ravaged habitat made their return dan-
gerous too. Very few of us think about
that.
And then there are trees. Lakhs of
those living canopies have been uproot-
ed and laid waste by Amphan in urban
and rural areas. When governments
sanction cutting of trees, there are
strong protests from civil society. Often
such concerted actions succeed in sav-
ing at least some, if not all trees, head-
ing for the chop. But when Nature
wants to destroy what she has created,
she brooks no opposition.
Cyclone Fani had uprooted or decapi-
tated an estimated 10 million trees in
Odisha, including neem, tamarind,
cashew, casuarina and groves of plan-
tations. Fresh water springs with their
own ecosystem of greenery and wild-
life were also affected. As is well
known, any change in the flora of an ar-
ea also often leads to variations in fau-
na. And Amphan’s effect on both may
be as much or even more than Fani’s.
Many animals are rescued and reha-
bilitated; doing the same for fallen
trees sounds, well, sappy. Yet, if they
keel over with roots intact, they can be
reinserted and given a chance to revive.
But civic authorities would rather
send in bulldozers and chainsaws and
reap a windfall from timber dealers. As
for those that fall in distant areas, we re-
ally don’t care beyond initial hand-
wringing and social media posts.
I see in Amphan more evidence that
Nature is howling at us to change our
ways—to live and let live. But as things
“get back to normal” after lockdowns,
even the pandemic hasn’t made us re-
calibrate. Cyclones are getting bigger
and more dangerous due to global war-
ming—thanks to us—and yet won’t
pay heed. How much more devastation
has to happen before we hear what’s
blowin’ in the wind?
heartland, so does the arrival of man-
goes, beginning with Kerala and then
heading progressively north.
But this year, the weather did not
cooperate. Rains last year stretched
well into the autumn, and the winters
had an extended run in a part of the
country where air-conditioners are a
permanent fixture since early Febru-
ary. And storms were rather aplenty
this season, hitting farm produce
throughout the mango-growing re-
gions of India.
"This year, the production of mangoes
from Andhra Pradesh and Telangana
is only half of the normal but custom-
ers are also less," said Vijay Dua, presi-
dent of Mango Merchants' Association
of UP Mangoes.
Insram Ali, president, All India
Mango Growers’ Association said:
“Because of storms, many fruits fell
prematurely. The total annual turn-
over of the mango business in Uttar
Pradesh is about Rs 8,000-10,000 crore.
Every year, traders come to UP to buy
the output of orchards in advance.
This year, 50% of the orchards still
remain unsold."
To be sure, low prices for farmers did
not mean consumers got the fruit
cheap. In fact, the smallest size Alphon-
so is still selling at Rs 600 a dozen in the
cities of Maharashtra, the worst-hit by
ports,” said Sanjay Pansare, a mango
exporter from Mumbai. “The facto-
ries supplying packaging material
required for exports were not oper-
ational. Now, exports by the sea route
have started, with the government
helping restart these operations."
There are challenges on manpower
availability, and freight rates remain
rather high.
Separately, the grounding of flights
has had a severe impact on mango ex-
ports by air.
"After passenger flights came to a
halt, the rates of cargo flights and
those converted into freighters
have increased almost three times.
The increase in freight rates has led
to the doubling of consumer prices
in Europe, which resulted in more
than 60% fall in our exports," said
Kaushal Khakhar, chief executive
officer, Kay Bee Exports.
FARM TO FORK
Back home, the lockdown has creat-
ed the farm-to-fork sales channel,
with housing societies emerging as
bulk consumers, said Uday Desh-
mukh, a senior government official
in Maharashtra's Agriculture De-
partment.

LNG Price Fall May ‘Amount to be less Safety Standards in Place

after Resolution’ ven the opportunity to restart bo- while staying with us. Not one ca-

Pose Difficulty for India From Page 1

Selling to factories may be
tough as supplies under
long-term contracts have a
much higher rate of $5-7/unit
Sanjeev.Choudhary@timesgroup.com
New Delhi: Spot prices of liquefied natural
gas (LNG) have fallen sharply to $1.3 per
unit, which has serious implications for In-
dia because it will be difficult to sell the fuel
to factories as supplies under long-term
contracts have a much higher rate of $5-7.
Industry fears a flood of disputes and litiga-
tion as factories are already struggling with
very weak demand because of the lockdown.
LNG rates have been under pressure for
more than a year due to a supply glut but the
extraordinary demand destruction by the
coronavirus pandemic and the difficulty in
storing the super-cooled liquid has hamme-
red global gas prices like never before.
International gas prices, a variable in the
domestic price, have also been falling. Do-
mestic prices fell 26% in the last six-month-
ly revision on April 1to $2.39 based on the go-
vernment-set formula. This triggered de-
mands by local producers to lift all price
controls. The formula price is derived from
average rates at international gas hubs.
Maximum price producers can charge for
gas from fields located in difficult terrains
has also dropped a third to $5.61per mmBtu.
The average of spot-LNG prices in April
this year was $2.4 per million metric British
thermal Units, compared with $5.2 in last
April and $6.4 in December, according to Ja-
pan’s trade ministry data. LNG rates in the
Asian region closely follow that of Japan.
With LNG rates under long-term contracts
being several times the spot prices, industry
executives say it would be difficult to sell gas to
Indian factories, which want to cut energy
costs as the economy reopens amid general de-
mand uncertainties. “Ever since global spot
rates crashed, it’s been hard to sell long-term
gas to customers. Following the lockdown, it
may be harder to convince them to continue ta-
king this gas,” said an executive at a state firm.
Gas marketers like GAIL, Indian Oil, GSPC
and Bharat Petroleum procure LNG via one
or more long-term contracts with suppliers in
Qatar, Russia, Australia and the US. They ma-
ke this supply available to city gas distribu-
tors or industrial customers under a contract
that requires customers to pay even if they
can’t take gas during the contract period.
The judge also vacated a trial date in the case previous-
From Page 1
A Rs 20 lakh economic revival
package that was announced re-
cently didn’t contain anything
okings since flights will resume
in a calibrated manner from Mon-
day. However, the fears that peo-
ple have need to be addressed.
se of a colleague,” he said. “With
all the measures that we have un-
dertaken, I believe our hotels and
those of others are as safe as any-
ly set for March 18 next year. specific for the hotel industry. “Dissemination of information where else.”
The latest direction is the outcome of the legal route ta- “Are we — and I am not speaking is critical and the same holds true The Oberoi Group has partne-
ken by three Chinese banks — Industrial & Commercial for myself but the entire industry for airlines,” he said. “If people red with laboratory testing, in-
Bank of China Ltd, China Development Bank and Ex-
port-Import Bank of China — which had sued Ambani
— disappointed that there was no
support? Obviously, we are all dis-
are scared, nobody is going to co-
me. There is a need to get factual
spection and certification servi-
ces provider Bureau Veritas to va-
in London for allegedly failing to repay $708 million of lo-
ans, including interests. The loans were taken by his
appointed with that. Like us, the-
re are other industries that also
and correct information out the-
re so that people can take deci-
lidate and review the new health
and safety programme across
company, Reliance Communications, and according to
the banks he was a personal guarantor to the loans. Am-
didn’t receive support from the
government,” he said.
sions on facts rather than percep-
tions for themselves and their fa-
properties.
Earlier this month, the company
bani had denied providing authority for any guarantee. The Oberoi Group owns and ope- milies.” announced that Cain International,
In February, the UK court directed him to pay $100 rates 33 five-star hotels and luxu- The hotel chain may have been the privately held real estate invest-
million in six weeks as part of an interim order. At the ry resorts in India, Indonesia, the first to implement measures ment firm operating in Europe and
time, the court had ruled that it did not accept Amba- Morocco, Mauritius, Egypt, Sau- in February such as temperature the US, had signed an agreement
ni’s defence that his net worth was nearly zero or that di Arabia and the United Arab readings, checking the travel his- with the chain for the operation of
his family would not help him out if things got really Emirates (UAE). In the wake of tory of guests and having doctors 23 serviced residences at South Aud-
tight for paying up the $100 million. the coronavirus outbreak, it has on call before completing check- ley Street in London’s Mayfair.
RCom has now gone into insolvency under a debt of Rs rolled out enhanced health and in formalities, he said. But every- “We are a hospitality company
46,000 crore. “As per the UK court order, the final amount safety standards and revamped one in the industry has worked and that’s what we are passionate
owed under the alleged guarantee will be assessed based standard operating procedures hard to ensure guests and staff about,” Oberoi said. “Tomorrow,
on the outcome of the RCom resolution plan filed before across all its hotels for various are safe, he said. we are not going to get into somet-
NCLT, Mumbai,” Ambani’s spokesperson said. functions and spaces. hing that is unrelated. Our com-
Once RCom’s resolution happens, the amount orde- ‘NO COLLEAGUE, GUEST POSITIVE’ petencies lie in hospitality and
red to be paid will reduce, he said. ‘ADDRESS PEOPLE’S FEARS’ “We have not had a single guest anything that lends itself to ho-
“The amount claimed under the alleged guarantee Oberoi said hotels should be gi- during March who was positive spitality.”
will reduce by up to 50% as per the resolution plan for
resolution of RCom’s debt which has been approved by
100% of RCom’s lenders and has already been filed in
the National Company Law Tribunal on 6 March 2020,”
his statement added.
UV Asset Resolution and Reliance Jio Infocomm are set
Collection of Details Underway
to be declared the preferred bidders for RCom’s assets. India’s move comes at a time hip, finance minister Nirmala
From Page 1 when the US has begun a crack- Sitharaman told ET in an intervi-
A dedicated cell could be set up to down on Chinese companies lis- ew earlier this week that “We ha-
ams in this crisis.” scrutinise new FPI registrations ted on American bourses and a ve responded somewhat to make

Pickup in Economic Activity Though the government has ta-

From Page 1
A few indicators suggest a pickup
in economic activity since the lows
of mid-April though a full-fledged
recovery is still a long way off. A
Credit Suisse report said power de-
mand, which had plunged 27% ye-
ar-on-year in mid-April, is down
only 14% in May. Similarly, e-way
bill generation, which had fallen
80% in April, is now down only
60%. Traffic congestion in metros
is still 15-40% of normal.
Though auto companies have res-
tarted production, vehicle regi-
strations are still down 90% year-
on-year as most of the dealers are
yet to resume operations. Cement
companies are operating at 50% ca-
pacity as dealers are unwilling to
stock up due to demand uncertain-
ty. However, cement sales in rural
areas are back at 65-70% of normal.
Domestic steel price has correc-
ted by Rs 1,000 per tonne this week
in New Delhi as the industry is fa-
cing several issues, said analysts.
“Our channel checks indicate that
trades are still at about 15-20% of
normal level due to absence of labo-
ur, disruption in payment cycle and
demand uncertainty,” said Amit
Dixit, analyst, Edelweiss Securities.
Mohit Anand, MD, Kellogg South
Asia, said the lockdown has bro-
ught challenges, pertaining to la-
bour, transport and permissions to
operate, which were unique to each
city and state.
“We have re-opened our facilities
and are now ready to gradually
ramp up production back to nor-
mal level to cater to the demand,”
he told ET. “Innovative solutions
such as over-the-counter sales by
our distributors, tele-calling thou-
sands of stores, midnight and pre-
dawn working hours to deliver food
to where it was needed… It has be-
en humbling to be a part of their te-
ken several steps to alleviate the
near-term liquidity challenges of
various sectors, the lack of any me-
aningful fiscal stimulus implies
that demand regeneration will ta-
ke time, said analysts.
“We expect the central and state
governments to proactively open
the green and orange zones for mo-
re economic activities,” said Sanje-
ev Prasad, MD, Kotak Institutional
Equities. “At the same time, it is im-
perative that state governments fo-
cus on containing the contagion in
urban centres, as an economic re-
covery will remain distant until
these centres — the major drivers
of consumption — see resumption
in ‘normal’ economic activities.”
from these countries and their in-
vestments. Reuters first reported
the story on Friday.
“The government and market re-
gulator have already begun collec-
ting details on Chinese invest-
ments and ultimate beneficial ow-
ners of FPIs based in China thro-
ugh Sebi, and this additional data
gathering is aimed to create barri-
ers for Chinese investors,” said an
expert on foreign investment.
“Chinese funds have begun slo-
wing their investments in India
and are in wait-and-watch mode.”
Compared to FDI, which is a mo-
re long-term and stable source of
funding, FPI is considered hot
money invested in listed shares
that’s easier to liquidate and exit.
Bill to delist them is already un-
der Washington’s consideration.
The fear is that Chinese compani-
es may acquire stakes in strategi-
cally important companies at a ti-
me when stock prices are volatile.
BENEFICIAL OWNERSHIP IN FOCUS
The finance ministry and the De-
partment for Promotion of In-
dustry and Internal Trade (DPI-
IT) are also working on defining
the beneficial ownership thres-
hold beyond which prior clearan-
ce will be necessary. This is cruci-
al for FPIs as they receive pooled
investments from multiple entiti-
es. A clarification on the issue is
likely soon, the official said.
Asked about beneficial owners-
sure that Indian industries are
safeguarded, particularly loo-
king at our border. And in the pro-
cess if there are questions being
asked, we are ready to clarify.”
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