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States With Most World CASES DEATHS

GLOBAL COUNT
Active 40% 9,000 Tests in India

Source: worldometers.
7,409 (+775) 30% % Increase Over
CORONA
METER Deaths
Prev. Day
20% Cases
7,000
5,000
3,000
Confirmed Cases
M’rashtra 1,761 (127) Total Till Date 195,748 1,812,891 Johnson Discharged
273 (+31) 10%
1,000
Delhi 1,069 (19)
112,255 from Hospital

info, WHO
Cured 0% 0 Tamil Nadu 969 (10) 15,583 (April 12)
TOTAL CASES 8,447 765 (+112) Jan 31, ’20 6 Mar Apr 12 Rajasthan 700 (3) Figures in Recovered
parentheses AROUND THE WORLD11
IN INDIA (+918) Source: MoHFW, 5pm 9,136: PTI ESTIMATE OF CONFIRMED CASES AS OF 9PM MP 564 (36) are deaths Source: ICMR; as of 9pm 415,274

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COVID CONTAINMENT & ECONOMIC REVIVAL: A TIGHTROPE WALK

Lockdown 2.0: Govt Mulls Resuming

Focus on Both Manufacturing in technology 0
Life, Livelihood Industrial Townships for all =
Looks to allow construction, production of
Refuelling Economic Engine
medical gear in safe & controlled conditions r
1

Anandita.Mankotia
@timesgroup.com
On The Cards
Relaxation Opening up Allowing cargo Workers Cos/MSMEs linked to
to farmers small & medium movement of could be New Delhi: The government exports but with minimal
and fishing industries by all kinds of brought back is considering resuming ma- workforce may be allowed
industry, ‘lock-in’ mecha- goods; insu- from camps nufacturing in industrial to resume production
procurement nism with rance cover by special townships with controlled ent- For sectors like textiles,
from door- workers for workers trains and ry & exit and dedicated medi- auto & electronics manu-
step housed onsite and drivers buses cal facilities, allowing const- facturing, 20-25% capacity
ruction activity with labou-
in single shift proposed
pected to ensure that harvests rers living on site, and produc-
and procurement of produce tion of medical and healthcare SOPs for social distancing,
Exemptions likely take place without any hind- related equipment as test ca- sanitisation may be framed
for agriculture, rance, said people with know-
ledge of the matter. Prime Mi-
ses before it opens up the eco-
nomy gradually, officials said.
Heads of 11 key
panels met senior PMO
factories and nister Narendra Modi is said
to have suggested
With a near consensus betwe-
en PM Narendra officials on Friday
transport of goods a “lock-in” for fac-
tories with wor-
Modi and state chi-
ef ministers on ex-
Medical fraternity wanted
lockdown to stay
kers staying onsi- tending lockdown
Aman.Sharma te and maintai- at the ‘virtual’ me-
@timesgroup.com ‘VERY FEW GREEN ZONES
ning social distan- eting on Saturday,
AS PER CURRENT
cing. The Centre the government is
METHODOLOGY’5
New Delhi: India’s urban is contemplating thrashing out
centres will see an extension measures to bring REVIVAL AF TER LOCK DOW N
fresh guidelines
of the lockdown at least until migrant workers for saving lives in the know told ET.
the end of the month but the from camps to their factories, and livelihood, officials said. As an example of controlled
government also wants to en- possibly by running special “With some three weeks of business activity, officials no-
sure that the engines of the buses or trains. complete lockdown, the idea ted that certain electronic
economy start turning—by Cargo movement of all kinds now is to begin some industri- manufacturers in the count-
making exemptions for agri- of goods will be allowed across al activity, construction, and ry such as Foxconn have
culture, factories and the the country, as will fishing. production/supply of medical dorms in their factories.
transport of goods. equipment and pharmaceuti-
The next phase of the lock- States’ Revenues Dip 50-75%8 cals in a safe and controlled en- Lists of Key Sectors Drawn8
down starting April 15 is ex- Cos Look to Get Back Labour4 vironment,” a senior official Road Construction Resumes9

INDIA MAY SEE WORST SLUMP IN 40 YRS: REPORT
WB Cuts GDP Forecast to 1.5-2.8%
India is set for its worst economic slump in 40 years,
according to a World Bank report that slashed the
country’s growth forecast for FY21to 1.5-2.8%.9
PLASMA THERAPY TREATMENT TO FIND A CURE
ICMR Issues Testing Protocol
ICMR has announced protocol for trial of plasma therapy
treatment for Covid-19 — the first official clinical trial THINKPAD.
HANDLE WITH CARE,
towards finding a cure. Divya Rajagopal reports.5

OR NOT.
TALKS ON WITH BANKS FOR SALE THIS WEEK
Today on
RIL Plans to Raise up
A ThinkPad X1 Carbon is forged in carbon-fibre a
Why pharma soft power is
India’s trump card
VCs have a pandemic shot for startups
to `10kcr Via Bonds magnesium alloy roll-cage, ensuring that nothing
Fresh twist in realty NBFC Altico’s resolution work, wherever you work from. It also comes equ
Amount equivalent to Chasing Funds
Why the lockdown is keeping Bharat ThinkShield, an end-to-end security solution that makes you
awake at night a tenth of the special Bonds may Securities may offer
be of three- practically immune to cyber-threats. And of course, like all
funding facility provided year maturity 7-7.2%
Cabinet Likely to Discuss AXIS BANK, HDFC BANK, ICICI ThinkPads it goes through 12 military-grade durability tests
by the Reserve Bank
IBC Ordinance This Week
BANK AND SBI WILL LIKELY
SUBSCRIBE TO RIL BONDS and over 200 quality checks.
Saikat.Das1@timesgroup.com SBI Caps too
The Cabinet will likely take up this Banks
week the ordinance to amend IBC involved in have
Mumbai: Reliance Industries Ltd (RIL)

to prevent companies from being
forced into insolvency proceedings owing to
defaults due to Covid-19, report Gaurav
Noronha & Deepshikha Sikarwar.9
Prices of Pulses, Oil
& Rice on the Rise
Prices of pulses, rice and
cooking oils have started
rising in retail stores across
India on high demand despite adequate
supply, traders said, adding scarcity of
packaging material is a worry and stor-
age curbs under Essential Commodities
Act may backfire. Sutanuka Ghosal &
Jayashree Bhosale report. 9
WORK SAFE.
negotiations obtained
is in talks with banks to raise as much as three-
`10,000 crore in a bond sale this week, RBI announced fourths of
`1L Cr WORK ANYWHERE.
equivalent to about a tenth of the speci- it already
al funding facility provided by the regu-
lator, underscoring the possibility of TLTRO package
top-rated and state-run companies pick-
ing up most of the amount.
Others accessing the window include market and invest in primary issues. The
Housing Development Finance Corp
(HDFC), Power Grid Corp of India, Na-
move was announced on March 27 along
with a cut in the policy rate to a record
tional Housing Bank (NHB) and Housing
and Urban Development Corp (Hudco).
low as part of initiatives to help borro-
wers cope with the economic damage in-
The Reserve Bank of India (RBI) is len- flicted by the Covid-19 pandemic.
ding as much as `1 lakh crore under Tar-
geted Long Term Repo Operations Banks Lean Toward Triple-A-rated Cos8
(TLTRO) to lower yields in the secondary China Central Bank Ups Stake in HDFC 7
ThinkPad X1 Active ThinkPad X1
Noise Cancellation Presenter Mouse USB-C Dock Gen2
‘FEARS OVER PAYMENT OBLIGATIONS OVERBLOWN’ Headphones
Most NBFCs Well-Capitalised: RBI
RBI’s monitoring mechanism suggests that more than four-fifths of NBFCs
have sufficient liquidity to withstand the current squeeze and fears over

1
0
Windows 10
payment obligations are overblown, reports MC Govardhana Rangan.7

Banks Stare at Defaults as Cabbies go Home

Industry executives seek concessions from lenders to prevent large-scale writeoffs
Lijee Philip & Alnoor Peermohamed
Gupta expects the business to revive
only by July or August. “Drivers tend to
almost `30,000 crore in borrowing,
according to Gupta. Lenovo recommends
Mumbai | Bengaluru: The exodus of
take up alternative professions when in
their villages and towns,” he said.
An executive for ride-hailing giant Ola
pegged the number of drivers that could
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cab drivers from Indian metropolises in There are about 1.1 million cabs across default on loans at 30% of the total base.
the wake of the Covid-19 pandemic will the ride-hailing, B2B and tourist taxi
trigger a massive default in vehicle loans, segments, which collectively amount to ‘Moratorium Till December’8 S.
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sharing company Meru. reports Lijee Philip.4
Illustration: ANIRBAN BORA
 2  Pure Politics
Centre Begins District-wise Mapping of Covid-19 Curve
Move to help govt devise an informed exit strategy from lockdown; district-wise demarcation — colour-coded red, yellow/orange or green — to be based on fresh survey
Anubhuti.Vishnoi@timesgroup.com
New Delhi: The Centre has star-
ted district-wise mapping of the
spread, spike and containment
curve of Covid-19 — a move that
would help the government devise
an informed exit strategy from the
nationwide lockdown.
Adistrict-wise demarcation — colo-
ur-coded red, yellow/orange or green
— on the basis of the number of ca-
ses and week-by-week virus trajecto-
ry is being done through a fresh sur-
vey with the help of district collec-
tors and IAS officers on the ground.
It is learnt that the Prime Mini-
Authorities Rely on Drone Eye to Maintain Vigil
FIGHT AGAINST COVID-19 States using UAVs to monitor gatherings, ensure social distancing, spray disinfectants and oversee cargo
Rahul.Tripathi@timesgroup.com
New Delhi: Unmanned Aerial Vehi-
cles (UAVs), commonly known as
drones, are becoming vital tools in
the fight against Covid-19 across sta-
tes with law enforcement agencies
using UAVs to monitor public gathe-
rings, ensuring social distancing,
spraying disinfectants over villages,
overseeing cargo, among others.
It was first used in China, the epi-
centre of Covid-19, where drones
were used to monitor fever in large
gatherings using thermal images
besides keeping a hawk’s eye over
crowded places, since January 2020.
“There are two things as far as a dro-
ne is concerned. It gives you an ad-
vantage of vantage. You can regulate
the height, especially in crowded are-
as. In the situation of Covid-19, the ba-
sic norms that are violated are social
distancing and conglomeration of pe-
ople, despite prohibitory orders. If
you have the visuals of people gathe-
ring in large numbers, you can send a
team of officers to counsel them,
send them back or you can force them
to go to their respective places,” says
UP DGP Hitesh C Awasthy.
Being a densely-populated state, UP
has seen registration of over 15,000
FIRs in which nearly 47,000 persons
APART FROM BHILWARA...
R’sthan has Another
Model to Prevent
Rural Spread: Pilot
‘State government has
worked on a rural
awareness and
precaution model’
Kumar.Anshuman
@timesgroup.com
New Delhi: Having turned the Bhil-
wara model to contain the Covid-19
spread into a success story, Rajasthan
is working on a rural awareness and
precaution model to arrest the virus’
spread at the jilla/panchayat level.
Rajasthan’s deputy chief minister
Sachin Pilot told ET in an interview
that the state is getting ready for pro-
curement of foodgrain and called
upon the Centre to procure grain for
FCI/NAFED as the state gears up to
save its agrarian economy.
Pilot said the Bhilwara model is be-
ing implemented in a lot of places
such as parts of Delhi, UP and other
states. “You can’t exactly replicate
what happened in Bhilwara, but the
principle behind that could be taken
forward. The concept is when you
have a curfew, it must be implemen-
ted in totality,” he said.
While the country’s focus has mainly
been on the urban areas which have
higher patients and clusters, the state
of rural areas are not discussed much,
he feels. To tackle this, the Rajasthan
government has worked on a “rural
You can’t exactly replicate
what happened in Bhilwara
but the principle behind that
could be taken forward. The
concept is when you have a
curfew, it must be imple-
mented in totality
SACHIN PILOT
Rajasthan’s Deputy CM
ster’s Office and the Department of
Personnel & Training sent a detai-
led questionnaire, an informal sur-
vey, to all the district collectors on
April 10-11. The questions were ba-
sed on the inputs received from the
empowered group on health. Most
officers have already replied.
The findings of the survey will be
submitted to the prime minister on
April 13 so that he can take an infor-
med view on lockdown, officials said.
The collectors have been asked to
indicate the colour code — green,
yellow or red — for their respective
districts. Red zone indicates high
number of cases. They are also ex-
pected to convey whether there is a
Streets of Guwahati
have been named for violation of
lockdown orders, officials said. Aut-
horities said with the duration of
lockdown all set to be extended, they
are looking to put the drones to better
use, particularly in hotspot zones, to
minimise human interaction.
Kerala, among the severely-affec-
ted states with Covid-19 cases, is
using a variety of drones for monito-
ring and delivery of services. Accor-
ding to Kerala Police, they have de-
ployed more than 500 drones across
awareness and precaution model”.
“We are working with the Pancha-
yati Raj network to create aware-
ness among the villages,” he said.
Elaborating on this model, he said:
“In a Panchayati Raj, you have block
samitis, jilla parishads, pradhans
and sarpanchs. We were able to moti-
vate them to take the leadership role.
It has to be a collaborative effort. On-
ce they know this is being done to
help them keep safe, half the battle is
won. There are small things, like we
say ‘Stay Safe Stay Healthy’.”
On the implementation side, he
elaborated: “We instructed all the
local bodies that MNREGA emplo-
yees have to wash their hands four
times a day, and it worked. Besi-
des, we started a sanitisation dri-
ve in the villages. Close to 37,000
villages of Rajasthan have been
sanitised with sodium hypochlo-
ride spray. There are 46,000 villa-
ges in Rajasthan
and we would be ab-
le to complete the
task in the coming
days. Sanitisation is
‘We will have happening only in
to maintain urban parts and af-
the supply fected clusters in ru-
chain of
essential
ral areas across the
country.”
items, raw Admitting that
materials MNREGA demands
which come have fallen because
from rural organised and plan-
areas’ ned work has stop-
ped, he said they were making re-
sources available to keep the he-
alth of people safe. “We have sanc-
tioned `. 50,000 for each panchayat
to buy sanitisers and masks at the
local level and distribute it among
the villagers. A number of alcohol
distilleries are now manufactu-
ring sanitisers,” he explained.
As a result of all these efforts, the
number of cases in rural areas are
very low compared to urban parts,
mainly because people in rural
areas don’t move around or go
abroad for work. “But certainly it
has been helpful as people in villa-
ges are more aware, confident
and battle ready,” he said.
Elaborating on how to revive
the agrarian economy, he said: “I
think there are two ways to keep
the rural economy running. First,
farmers must be given a fair com-
pensation for their harvest at the
earliest. In Rajasthan, we are
starting procurement. The go-
vernment of India should also
start procuring for FDI or NA-
FED. This will provide them econo-
mic capacity to sustain themselves.
Second is consumption. We will ha-
ve to maintain the supply chain of
essential items and raw materials
which come from rural areas. If
we keep the supply chain open it
will give them work and
engage them
econo-
mical-
ly.”
shift in the colour code. Assess-
ments so far indicate that most dis-
tricts are moving from green to red.
Only about 7-8 districts are learnt to
be making the downward shift —
from red to green. The Centre is also
interested in knowing the measures
— lockdown, isolation, quarantine,
medical facilities, supply of essential
goods — being taken to contain the
pandemic. Steps being taken at villa-
ge and panchayat levels are to be sha-
red by collectors with the Centre.
The survey aims to assess whet-
her the steps taken by the govern-
ment, especially for the migrant la-
bourers and underprivileged, are
being implemented fully or not.
Cantt Kotwali in Lucknow
the state in association with the Dro-
ne Association of Kerala, since the
beginning of the lockdown.
“At some places, we are using
small drones fitted with police si-
rens and flashing lights so that pe-
ople below can’t miss them even af-
ter sunset. Wireless technology al-
lows police to give out instruction
over speakers fitted into these fly-
ing machines. Some drones are ca-
pable of supplying medicines, up
to 5 kg, or essential goods for fami-
PRAYER IN THE TIMES OF COVID-19
A priest at the St. Xavier’s Church in Ahmedabad on Easter Sunday — AFP
‘LOCKDOWN WAS DELAYED BY CENTRE ONLY TO TOPPLE MY REGIME & INSTALL A BJP CM’
MP Left in the Lurch Without India Thoroughly
Cabinet, Admin: Kamal Nath Prepared to Battle
Not even hospitals are working properly: Former CM
Our Political Bureau
New Delhi: Former Madhya Pra-
desh CM Kamal Nath has accused his
successor Shivraj Singh Chouhan
and the Centre of letting the people of
the state languish unattended amid
the Covid-19 outbreak as the state has
been left without a council of mini-
sters and any administrative mobili-
sation, even three weeks after Singh
took oath as chief minister. He also al-
leged that the lockdown was delayed
by the Centre only to topple his regi-
me and install a BJP CM.
“It was on March 23 that Shivraj
Singh took oath as chief minister.
Yet, till now, the Cabinet has not
been constituted. There are no mi-
nisters and no semblance of ad-
ministration in the state even as
the people of Madhya Pradesh ha-
ve been left unattended after the
Covid-19 outbreak. Not even ho-
spitals are working properly,”
Nath said at an AICC briefing via
videoconferencing.
“Before I resigned as CM, due to
the defection of some MLAs who
were given some allurement by
BJP, my government had initiated
many steps to deal with the Co-
vid-19 issue. I held a video conferen-
ce with all district collectors. I star-
ted closing down many public pla-
ces even before the Centre decided
on that. But, the state has become
directionless after March 23.”
Nath’s comment comes even as the
state Congress through the party’s
Rajya Sabha MP Vivek Tankha has
petitioned the President, deman-
ding early constitution of the coun-
cil of ministers in MP.
“The Constitution clearly says
that there shall be a Council of mi-
nisters... I can understand a CM
Findings of Survey to be Submitted to PM Today
It is learnt that the Prime Minister’s Office and
the Department of Personnel & Training sent a
detailed questionnaire, an informal survey, to
all the district collectors on April 10-11
Illustration: ZAHID
The questions were based on the inputs received
from the empowered group on health
Most officers have already replied
District collectors have been asked
to inform on distribution of free ra-
tion, gas cylinders under Ujjwala,
direct cash deposit of `500 in the
lies living in quarantine,” DGP
Loknath Behera told ET. The state
police are using these UAVs to
identify illicit brewing of liquor in
higher and remote reaches of the
state, group drinking, gatherings
at public places, among others.
“What the police want is not only to
identify and prosecute the offenders
but also to scare them so that they
rush back home and stay there,” said
a senior officer from the Kerala poli-
ce who runs Cyberdome, an ISO-cer-
Even as everybody was both-
ered about Covid-19 outbreak,
the Centre deliberately kept
Parliament working... BJP had
made fun of the then MP
Speaker for postponing the
session. Now what happened?
taking a few days to constitute his
ministry, but not more than three
weeks. The entire people of the
state are suffering. Even many se-
nior officers of the health mini-
stry have been infected with coro-
navirus,” Nath said.
He lamented how every section
of society, especially farmers, dai-
ly-wagers and other vulnerable
sections in MP have been reeling
under health hazards and econo-
mic hardship due to the “non-ex-
isting state administration”.
Nath also accused the Centre of ha-
ving “deliberately delayed the anno-
uncement of lockdown” only to
complete the “toppling” of his regi-
me. “Even as everybody was bot-
hered about the Covid-19 outbre-
ak, the Centre deliberately kept
Parliament working even as ma-
ny state assemblies had called off
their sessions. BJP had made fun
of the MP Speaker for postponing
the session due to coronavirus.
Now what happened? Because,
the Centre was then only bothe-
red about installing a BJP govern-
ment in the state. Just after Shiv-
raj Singh Chouhan took oath, the
PM announced the lockdown.”
THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM
bank accounts of the migrants, etc.
The move to seek district-level in-
formation began after the prime
minister on Friday held an hour-
tified public-private initiative, un-
der a project named Eagle Eye.
Even as the question remains
whether these UAVs lead to an in-
fringement on civil liberties, Del-
hi police have been using them in
congested lanes and bylanes.
“Drones are essential. Normally,
police patrolling is
on the roads; they
don’t get to know
what is happening in
bylanes or at mar-
Kerala is
using a
kets where essential
items are available.
This is where the dro-
variety of ne is an important to-
drones for ol in management of
monitoring law and order. Using
and delivery technology, we can
of services have a focussed app-
roach to reach places
where people are congregating and
not adhering to social distancing
norms,” Delhi police commissioner
SN Shrivastava told ET.
Similarly, Assam, which has been
proactive in containment of Co-
vid-19 cases, is using drones to keep
an eye on religious places and large
gatherings at markets and public
places. ADGP (law and order) Assam
police, GP Singh, said: “We are using
UAVs to monitor the congregation at
religious places including temples,
Chouhan: Pandemic
had Spread by the
Time I Took Oath
Madhya Pradesh CM Shivraj Singh
Chouhan on Sunday said the
pandemic had already spread in the
state by the time he took oath on
March 23. “Within an hour of taking
oath, I arrived at Vallabh Bhavan,
putting all my might in fighting the
disease.” MP BJP spokesman
Rajneesh Agarwal said the erst-
while Congress govern-
ment didn’t take the
threat seriously.
“Nath as CM had
said handling the
political crisis was
more important
and corona-
virus can
wait.”
— OPB
long review of the national feed-
back survey on Covid-19 — conduc-
ted with district collectors within
the first five days of the lockdown.
mosques, gurudwara, churches.
Things may appear normal from the
outside but there could be a gathe-
ring of people inside. As soon as we
notice that, we announce and requ-
est people to disperse.”
On whether drones can undertake
facial recognition, UP DGP Awasthy
said: “The drones we have are basic.
Face recognition will require 5G net-
work. What we have on our monitor
are visual images of people congrega-
ting, visual images of the condition of
the street, images of the rooftop of the
buildings to know if there are any pro-
jectiles, missiles or stones kept. This
is a recent use of technology which
police are using particularly in urban
agglomeration like Lucknow, Noida,
Agra, Meerut. We are not using such
technology in rural areas as these are-
as do not have tall buildings and such
congested habitats.”
Maharashtra, with the highest num-
bers of Covid-19 cases, is using data
analytics and drones to deal with con-
tainment in crowded places. “Each
drone can cover an area of nearly a ki-
lometre. In Mumbai, there are some
wholesale markets. These drones are
used to keep an eye at such places and
ensure distancing. We urge them to
put their stalls on the roads since most
streets are empty due to lockdown,”
said a senior IG of the Mumbai police.
‘INDIA MUCH AHEAD OF THE CURVE’
Covid-19: HealthMin
In Numbers
Day Requiring Hospitalisation
April 6
April 7
Illustration: ANIRBAN BORA
April 8
April 9
April 10
April 12
Nidhi.Sharma@timesgroup.com
New Delhi: India is thoroughly
prepared to battle the onslaught
of Covid-19 pandemic, said the
Centre on Sunday. The ministry of
health and family welfare relea-
sed statistics on the number of
isolation beds across the country.
The ministry statistics showed
India has used 1.5% of the isola-
tion beds available across 601 ho-
spitals. At present, there are
105,980 isolation beds. According
to the ministry, at 4 pm on Sunday,
the number of positive patients
was 8,356. “As per our statistics,
about 20% of the positive patients
need to be hospitalised and the re-
maining 80% have mild symp-
toms. Based on this, of 8,356 pati-
ents, about 1,671 would need to be
admitted in intensive care or cri-
tical care units. At present, there
are 105,980 beds,” said joint secre-
tary (health) Lav Agarwal. “We
are thoroughly prepared.”
Claiming that India has been ahe-
ad of the curve, the ministry said on
Friday that as many as 1,282 pati-
ents needed critical care against the
available 104,613 isolation beds.
The findings
of the survey
will be sub-
mitted to the
prime minister on April
13 so that he can take
an informed view on
lockdown, officials said
The feedback had pointed out se-
rious gaps in the health infrastruc-
ture and facilities at the district le-
vels, as reported by ET on April 3.
PM-CARES to
be Audited by
Independent
Auditors
Aman.Sharma@timesgroup.com
New Delhi: The PM-CARES Fund
will be audited by an independent qu-
alified set of auditors appointed by its
trustees, including the prime mini-
ster. The new fund has been opened up
for donations from abroad after it was
exempted from the Foreign Contribu-
tion Regulation Act. Donors will be
able to download donation receipts di-
rectly from the PM-CARES portal it-
self, ET has learned.
Congress president Sonia Gandhi,
in a letter to Prime Minister Narend-
ra Modi earlier this week, said all
money under the PM-CARES fund
be transferred to the Prime Mini-
ster’s National Relief
Fund to “ensure effi-
ciency, transparency,
accountability and
audit” and termed it
a“waste of effort and
resources” to create
Officials: The
issue raised two separate silos for
by most Cong distribution of
CMs is an
law passed
by the UPA
funds. Her demand
outcome of a will not be accepted.
The Left parties ha-
ve lamented that re-
government ceipts for donations
to the PM-CARES
Fund are not available. Congress
chief ministers have also asked
why the CM Relief Funds are not
eligible for funds from companies
under Corporate Social Responsi-
bility (CSR), like the PM-CARES.
Senior government officials said the
issue raised by most Congress CMs is
an outcome of a law (Companies Act)
passed by the UPA government in Ju-
ly 2013, under which funds set up by
the state government were omitted
from the list of ‘eligible funds’ which
could receive CSR donations. “The
controversy around CM relief funds
not being eligible for CSR is hence a
result of incomplete knowledge of
the law,” government officials said.
Hospitals Isolation Beds
813 445 79,293
884 508 82,795
1,039 520 85,117
1,147 523 85,193
1,282 586 104,613
1,671 601 105,980
“The number of hospitals with iso-
lation beds and Covid-19 treatment
facility have also increased steadi-
ly from 163 on March 29 to 601 on
Sunday,” said Agarwal.
Even as the number of cases in-
creased despite the lockdown,
the ministry said the number of
recoveries have also been high at
716. The recovery number increa-
sed steadily from 87 on March 29
to 642 on Saturday. Agarwal said:
“Our main focus has been the tre-
atment of positive patients and
ramping up testing facilities.”
The Indian Council of Medical
Research has increased the num-
ber of samples being tested. Over
the last five days, on average,
15,747 samples per day have been
tested. So far, 1.86 lakh samples
have been tested and approxima-
tely 4.3% have tested positive.
To augment testing capacity in all
government and private medical
colleges on an urgent basis, the
Centre will distribute the responsi-
bility evenly across various emi-
nent institutions. They are expec-
ted to serve as mentors of the medi-
cal colleges in their allotted area
and facilitate the establishment of
testing facilities in the states.
THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM
Pure Politics  3
NOWHERE TO GO Exempting several sectors from lockdown may not have desired result as 13 lakh migrant workers confined to shelters

Ensure Smooth Cargo Ops, States Told

Rahul.Tripathi @timesgroup.com
The ministry of commerce has urged the MHA
New Delhi:Union home ministry on
Sunday directed the states and UTs to
New List of Sectors to be Opened Up:
Big companies such as textiles, automobiles and
Widen Scope to allow more activities with reasonable
safeguards to improve economic activity and
BCCL PHOTO

ensure smooth movement of inter,

intrastate cargo, workers and func-
tioning of warehouse even as the
commerce ministry urged them to al-
low “more activities with reasonable
safeguards to improve economic acti-
vity and provide liquidity in the
hands of people”.
“Restrictions, with regard to activi-
ties specifically permitted by MHA,
have the potential of creating shorta-
ges of essential commodities. Inter-
state and intra-state movement of all
trucks and other goods, carrier vehi-
cles with one driver and one additio-
nal person is allowed as long as the
driver is carrying a valid driver’s li-
cense. This is irrespective of the na-
ture of the cargo, whether essential
or otherwise. No further permit or
approval would be required,” the ho-
me ministry stated in its latest com-
munication.
“MSMEs engaged in the manufactu-
re of essential items like wheat flour,
pulses and edible oils should be allo-
wed to function freely, without any
hindrances. Warehouses, cold stora-
ge should be allowed to freely func-
tion with allowance for to and fro mo-
vement of trucks and without regard
to the nature of the goods, whether es-
sential or otherwise. Warehouses of
companies should also be allowed to
operate,” it further noted.
Government sources said the letter
from commerce ministry is part of a
“routine process” of sending feed-
back based on interaction with the in-
dustry. In its letter, the department for
promotion of industry and internal
trade has recommended opening up of
“new activities in addition to those al-
ready allowed... while adhering to pro-
per hygiene, sanitation and social dis-
tancing.” Earlier, the home ministry
exempted supply chain and manufac-
turing of essential goods, tea planta-
tions. However, the states informed
the Centre that due to the absence of
adequate labour force, production in
several of these sectors took a hit.
Thirteen lakh migrant workers have
been displaced and are living in over
27,661 shelter camps across the states
and Union Territories, according to a
home ministry official. “To overcome
the labour force problems, we have ad-
vised the states to utilise industrial
and farm workers staying at the relief
camps while adhering to hygiene and
social distancing,” a senior MHA offi-
cial told ET. The states are also concer-
ned about the harvesting of rabi crop,
including its movement to markets as
agricultural operations are time bo-
und. “The harvesting period of wheat
is approaching in several northern
electronic manufacturing
MSMEs with export commitments
Heavy electrical items like transformers
and circuit vehicles
Telecom equipment and components
including optic fiber cable
Compressor and condenser units
Steel and ferrous alloy mills
Spinning and ginning mills, power looms
Defence and defence ancillary units
Cement plants Pulp and paper units
Fertilizer plants Paints and dyes manufacturing
Plastic manufacturing units Automotive units
Gems and Jewellery sector units (big and organised)
All units in SEZs and EOUs
Housing and construction sectors
Glass and foundry industry All street vendors
Repairing units in mobile, electrical items
Allowing work by plumbers, cobblers, ironing
(dhobi), electricians, mechanics
AS PER SC ORDER
Centre reit-
erates the need
to set up med-
ical facilities, arrange
food and maintain proper
sanitation at camps
states. Combine harvesters and their
movement within the state and betwe-
en the states is permitted. Precautions
and safety measures of workers enga-
ged in repair, maintenance and har-
vesting operation has to be ensured by
the state governments,” said the offici-
al. In its advisory, the Centre said for
manual field operations of harvesting
and picking, farm workers are advised
to accomplish the operation maintai-
ning a distance 4-5 feet. It advised to as-
sign one strip of land to one person to
ensure adequate spacing between la-
bourers. “All the persons engaged sho-
uld wear masks and wash hands with
soap at reasonable intervals. Mainta-
in safe distance of 3-4 feet while taking
rest, during meals, transferring of
produce at collection points, loading
and unloading,” stated the directives.
During cleaning, grading, sorting and
packaging operations at the farm-le-
vel, workers have been advised to wear
protective face mask that may help
against aerosols and dust particles
and thus minimise respiratory diffi-
culties.
of Activity
COVERING MIGRANT LABOURERS, DAILY WAGERS AND URBAN POOR
PMO Weighs Food For All, May Do
Away With Need for Ration Card, IDs
Anubhuti.Vishnoi
@timesgroup.com
New Delhi: With the likelihood of
the lockdown being extended be-
yond April 14 high, a key concern
has been flagged to the Centre: of en-
suring food supply to migrant labo-
urers, daily wagers and urban poor
who may not have the required ra-
tion card with them.
A recommendation has come from
the empowered groups and senior
officials of the government to enlar-
ge access to food by doing away with
the requirement of ration card or
any kind of ID, and distributing it
anyone who needs it during the time
of the lockdown and until normalcy
resumes, ET has gathered.
The Prime Minister’s Office is le-
arnt to be examining the recommen-
dation, which requires a policy shift.
The recommendation has come in
view of the assessment that many in
the unorganised sector are still not
within the public distribution sy-
stem network and still others may
have left their ration card back ho-
me for their families to use.
provide liquidity in the hands of people Mumbai
GURUPRASAD MOHAPATRA Secretary, DPIIT Mandis to
Dialogue and Joint Solution Reopen on
States: Absence of adequate MHA: States must
labour hurting production
in several sectors,
employ workers in
relief camps while
Wednesday
including manufacturing, maintaining hygiene
Jayashree.Bhosale
tea plantation and social distancing
@timesgroup.com
States: Concerned over Centre: Workers must
harvesting and handling maintain 4-5 feet gap Pune: Mumbai’s main whole-
sale market for vegetables, fruits
of rabi crops during manual field
operations ‘ and spices will reopen on April
15 with adequate precautions
and steps to address the griev-
All those engaged should use masks and ances of traders, a top official
wash hands at reasonable intervals
said after a meeting of traders,
government officials and police
Maintain 3-4 feet during rest, taking of meals, transfer chiefs of Mumbai, Navi Mumbai
of produce at collection point, loading and unloading and Thane took place on Sunday.
“We had called a meeting of all
GETTY IMAGES the stakeholders today (Sun-
day). It was attended by traders,
labour leaders and police offi-
cials to resolve the issues being
faced by the market functionar-
ies,” Maharashtra’s principal
secretary (agricultural market-
ing) Anoop Kumar told ET.
Grain traders, who had decided
to shut down indefinitely from
Monday, said they would reopen
as soon as their issues were re-
dry food ration should be simply porarily. solved. Vegetable traders were
distributed to whoever needs it wit- The Centre had announced a Rs also optimistic that their griev-
ances such as police harassment
hout insisting on a ration card. The 1.70 lakh crore relief package for the
reason being, several people in ne- poor while the country fights the co- would be redressed soon.
ed just now are migrant labourers ronavirus outbreak. The market was shut down on
and daily wagers who usually leave A major component of this is free Saturday after a spice trader in
their ration cards behind with their food distribution: about 80 crore in- the Masala Market tested posi-
families back home for their dividuals are to be provided double tive for Covid-19, which created
needs. They rely here on of their current entitlement (5 kg panic among workers and trad-
daily earnings to sur- wheat/rice) besides 1 kg pulses per ers, and prompted authorities of
vive and are now family - for three months. APMC-Vashi, to order the shut
quite helpless,” a However, access to this free food re- down. Grain traders had decided
to shut down the market indefi-
E-groups want to enlarge senior official quires showing the relevant ration
nitely from Monday.
access to food as many in in the know of card at the fair-price shops or public
the proposal distribution centre stores. “Traders and labour represen-
the unorganised sector are told ET. While the Delhi government has tatives will meet again on Mon-
still not within the public “Doing away done away with the ration card re- day to fine-tune details of start-
with the ID re- quirement, other states are yet to fol- ing work again while taking care
distribution system and of everyone’s safety,” said labour
quirement low. Some states have announced
still others may have left will ensure no transfer of funds directly into acco- leader and MLC Narendra Patil,
their ration card back one goes witho- unts of ration card holders. who attended the meeting.
Grains market representative
home for their families ut food. Conside- A recent study by the Internatio-
Nilesh Veera told ET that trad-
It has been sugges- ring that we have nal Food Policy Research Institute
ted that the Centre ask enough food stock in on how India’s food safety net is re- ers have decided to work out a
all states to distribute free the godowns of the Food sponding to Covid-19 also pointed to strategy to address concerns
food and grains to people even wit- Corporation of India, this sho- this issue. The study observes that raised by labourers. The main
hout an ID card/ration card. uld not be a problem, it has been sug- PDS coverage in urban areas is low grievance of traders every-
“This should most definitely be do- gested,” the official added. at about 50% leaving out many ur- where was police harassment,
ne and at the earliest — keeping in It is felt that the Centre’s nudge can ban poor, and suggests the need to Veera said, pointing out that po-
view the unprecedented situation push states to do away with the pa- “expand the list of eligible house- lice have been confiscating vehi-
we are in. It has been advised that perwork requirements, at least tem- holds” at least for now. cles that are on road after 4 pm.

Travelled on
Updates on State of Affairs Valid Papers:
Wadhawans

WEAR YOUR
Rashmi.Rajput
@timesgroup.com

YOUR NEWSPAPER IS SAFE Karnataka chief minister BS Yediyurap-
Defence
Training Hit
by Covid-19
Our Political Bureau
New Delhi: The gradua-
tion of the current batch of
students and the induction
of new trainees at the de-
fence forces’ training insti-
tutes is likely to be delayed
due to Covid-19. Training at
these institutes has also be-
en severely affected due to
the pandemic. The new
batch of trainees at the ar-
my’s Officers Training
Academy (OTA) Chennai
and OTA Gaya for short-ser-
vice commissioned officers
and those coming through
the “technical entry” as
engineers were to report on
March 30, but could not due
to the lockdown.
There is likely to be deli-
berations on whether the-
Southern States make Efforts to
Bail Out Farmers During Harvest
Our Bureaus
Hyderabad / Bengaluru /
Chennai / Kochi: The sout-
hern states are stepping up ef-
forts to procure foodgrain and
horticulture produce from the
farmers’ doorstep this harvest
season amid the nationwide
lockdown by arranging farm la-
bour, harvesters, gunny bags
and millers, apart from setting
up village-level rocurement
markets.
Andhra Pradesh, Telangana,
Karnataka, Tamil Nadu and Ke-
rala are at various stages of set-
ting up control rooms and toll-
free helplines to address the gri-
evances of the farmers.
Some, like Telangana have or-
dered millers and traders to
purchase foodgrain at the re-
ANIRBAN BORA
and Karnataka, which has alre-
ady completed rabi harvest sea-
son, is stepping up efforts to
help farmers with various in-
puts like seeds and fertilisers
for the kharif season.
Some of these states are also as-
sisting agencies like Food Corpo-
ration of India to procure food-
grain directly from farmers.
In a letter to Prime Minister
MASK
Mumbai: Kapil and Dheeraj
Wadhawan, the promoters of
distressed financier DHFL,
have said they are not ‘abscon-
ders’ as they secured official
permission from the local gov- .
ernment to travel to their an-
cestral home in Mahabalesh- I Wear it with courage.
war during the lockdown.
The Wadhawans, along with
21 others, have been booked
Wear it with pride.
by the Satara police for vio-
lating curfew norms. Wear it together.
In their statement released
Wear it to stand as one.
on Sunday, the Wadhawans
have cited their mother’s old t op, 4f
age and their personal ill- Wear it to show your support.
nesses to justify the travel.
Wear it because you care.
Wear it because you dare.
Wear it to fight.
To defend.
To protect.
bags, said Palla Rajeshwar Red- Wear it to encourage.
dy, chairman of Rythu Bandhu
Samithi, who is heading the To encourage your country.
control room.
Every country man, woman and child.
Alow Fertiliser imports
Karnataka has sought the Every caste, creed and religion.
Centre’s help in ensuring im-
port of fertilisers and raw mate- Wear it whenever you step out of home.
rial that go into making of pack-
ing material to store and trans- Everywhere, every time.
v Clean it regularly.
bra;' jr Wear it for yourself.
Wear it for your family.
Wear it for India.
Make Your Own Mask.
Wear Your Own Mask.

se institutes should have a munerative minimum support

compressed training
schedule for the new batch
or continue for the sche-
duled full duration. Offici-
als, on the condition of
anonymity, also said that
selection boards of poten-
tial candidates for most
institutes such as the ar-
price, and are looking at linking
the rural employment guaran-
tee scheme to the sector. The sta-
te has also urged the Centre to
allow using MNREGA to pay
50% of the farm labour with far- Narendra Modi on Saturday, Te- port grains.
mers paying the other half. langana CM K Chandrasekhar The state has also allowed free
Tamil Nadu has announced lo- Rao also urged the Centre to ex- movement of essential supplies Share a picture wearing
ans to procurement agencies to tend interest-free cash credit lo- to improve supply of fruits like The best pictures will be
your home-made mask on your

L
my’s Indian Military Aca- buy agri-produce directly from an to the states to support the mango, grapes, watermelon
social media pages using featured in TOI and on

demy (IMA) and the tri-
services National Defence
Academy (NDA) are not
taking place currently.
This means that new bat-
ches of trainees to these
institutes, who are to join
in July, could be delayed.
farmers’ doorstep at fixed fair
prices while Andhra Pradesh is
setting up more than 700 decent-
ralised procurement centres.
Kerala is using the market in-
tervention fund to procure ve-
getables and fruits directly
from the farmers at fixed prices,
procurement operations.
The state has announced a
MSP of around `1,800 a quintal
for paddy and maize
The government has organi-
sed more than 15,000 harvesters
and initiated measures to ar-
range around 20 crore gunny
#MASKINDIA
and jackfruit to large consump-
maskindia.com
tion centres like Bengaluru. #Masklndia
“The foodgrain production
was good last year because rabi
crop made up for the shortage of
khariff production,” state agri-
culture commissioner Brijesh
Kumar Dikshit said. CHANGE Begi ns Here
 4  Covid-19 Impact: Companies THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM *

Industry Better Prepared for Lockdown 2.0 Retailers and FMCG companies say movement of essential
supplies nearly impossible as hotspots are totally sealed, though it is better in non-danger zones AUTO PRODUCTION SEVERELY IMPACTED

‘Barely Any Supply in Hotspots’ Carmakers likely to Defer

Singed, Sealed...
Writankar Mukherjee
& Sagar Malviya
Not Delivered Kolkata|Mumbai: Supplies and
sales have come to a grinding
halt in places identified as Co-
vid-19 hotspots, even as the
overall supply situation has
improved in non-danger zo-
nes, leading consumer pro-
ducts makers and retailers
have said. They envisage
less hiccups in the widely
expected second phase of
the lockdown.
While shops are complete-
ly closed in hotspots, com-
panies said even ecommer-
ce deliveries have stopped
in most such areas.
FMCG firms said they
are facing problems mo-
ving trucks through
such completely sealed
areas to other places.
“In the hotspots, there is
no difference between es-
Retail shops sentials and non-essentials sin-
are completely ce the risk of infection is high and
closed in authorities have a bigger issue in
hotspots handling that,” said Mayank Shah,
category head at Parle Products.
Ecommerce
deliveries
Even delivery of milk is a pro-
blem within the two hours window
which authorities are allowing in
hotspots. “We have roped in all our
ice-cream distributors to supply
milk so we have enough manpo-
wer," said RS Sodhi, managing di-
rector of Gujarat Milk Marketing
Federation that owns Amul brand.
Online grocer Grofers has rest-
ricted deliveries in
all areas identified
Clear as red zones. “Ho-
indication wever, we will be
from govt working with the
that industry local authorities to
will receive a provide essentials
breather in these contain-
ment zones in case
they provide us with drop off po-
ints for deliveries later,” its foun-
der Saurabh Kumar said.
Retailer More has shut down 50 of
its stores. Entire operations are
shut in hotspots, the company’s de-
puty managing director Mohit
Kampani said. He said the supply
chain to other stores is not impac-
ted as of now since the trucks have
taken alternative routes.
ITC said it is reviewing the situa-
tion every day to respond to emer-
ging circumstances.
Almost all states have identified
some Covid-19 hotspots where the-
re are several cases of infections
and high chances of community
spread. These include several loca-
lities in the metros, state capitals
and some district towns.
INDUSTRY READY
FMCG companies said the indust-
ry is better prepared for the next
phase of lockdown. There are clear
indication from government that
restriction will be more for citizen
movement while the industry will
receive some breather.
“Teething issues in first phase of
lockdown are solved, and capacity
is up from 10% to 25-30%,” Parle’s
Shah said. “So, product availabili-
ty will improve now,” he said.
Some companies have received
guidance from the Centre that the-
re should be no labour movement
to factories and hence they are ma-
king arrangements for workers to
stay at the facilities.
“At local level, there is a dramatic
improvement with clear commu-
nication between us and local ad-
ministration, especially police,
municipalities and state admini-
stration,” More’s Kampani said.
Launches, Realign Strategy
Sector troubled by
lockdown, shift to
BS-VI regime and
uncertain future
Lijee.Philip@timesgroup.com
Mumbai: Automakers are likely
to delay product launches sche-
duled for this year, as the Covid-19
outbreak and lockdown have
compounded problems, industry
executives and experts said.
The companies are hurt also by
the imbroglio over the transition
from BS-IV emission standards
to BS-VI. Since the Supreme Co-
urt has given a 10-day breather to
sell 10% of unsold BS-IV invento-
ries after the lockdown is lifted,
automakers will be clamouring
to sell those first, experts said.
In fact, the BS-VI products of so-
me companies are yet to even test
the waters, with pricing being a
challenge, they said.
is important is to plan one’s pro- cover from the current situation
duct portfolio in a manner that and get their business sustainab-
customers get new and refreshed le. New model launches won't ha-
products as per plan,” Toyota Kir- ve a positive impact right now as
loskar Motor senior vice presi- consumers can't even step into
dent for sales and service Naveen dealerships for some time.” But
Soni said. “However, we are eva- he said companies could still do
luating the global impact on our some online launches, allowing
product launch timing.” consumers to see the products
Hyundai Motor India launched and keeping the interest alive.
the facelifted Verna in end- Industry insiders said getting
March, announced prices online production back on track itself
and sent some units of the car to would be a big challenge. Manpo-
dealerships, but sales were im- wer would return in a trickle —
pacted due to the lockdown. The most have gone to their native
launch of the fa- places — and it would take at least
celifted Tucson, six months from date of reope-
Industry scheduled for Au- ning for production to normalise.
insiders say gust, could be de- While there is no official com-
getting layed, people in munication yet from Tata Motors
production the know said. on the impact of Covid-19 on pro-
back on track New entrant duct launch plans, dealers ET
itself would Kia planned to spoke to said they didn’t see any
be a big launch the Sonet launches before October. The
challenge, compact SUV, company is to launch the HBX,
with labour which shares the the smallest SUV in its portfolio,
trickling in platform and and Gravitas, a 6-7-seat version of
engine options the Harrier, but both may now see
with Hyundai Venue, this Au- a delay, the dealers said.
gust. People close to the matter Mahindra & Mahindra dealer
said the Hyundai affiliate was sources said the company had no

Retailers Seek Special Trains,

Carmakers may need to go back
have stopped to the drawing board to realign
in most such strategies and production sche-
areas dules with vendors. There is also
uncertainty over how the consu-
evaluating the situation with
vendors and other partners and
that there could be a delay. Clarity
would emerge by month-end, one
of them said.
all-new product launches during
FY21, though it was planning so-
me significant updates to the
Thar, Scorpio and the XUV500.
Tata Motors and Mahindra de-

Buses to Bring Back Workers

FMCG firms mer will behave after the lock- Hyundai and Kia didn’t want to clined to comment.
facing down, given the imminent wage comment on their plans. Local market leader Maruti Su-
problems cuts and job losses. Kaushik Madhavan, vice presi- zuki also declined to comment on
moving “As of now, we are evaluating dent, mobility practice, Frost & product launches, as it is in the si-
trucks in late March to stem the Covid-19 as the fleet in operation has been the impact of Covid-19 and the Sullivan, said: “The focus for lent period ahead of its results
through

ARINDAM
pandemic. While thousands of severely depleted. This is causing lockdown on our business. What most OEMs (automakers) is to re- announcement.
Cos say availability migrant workers left for their nati- wastage of fruits and vegetables,

WE HAVE ROPED IN
of food and other ve places, causing a shortage of
manpower, complaints of police
leading to higher prices, it said.
On the other hand, retailers and
ALL OUR ICE-CREAM essential supplies is beating retail staffers and preven-
ting free movement of goods carri-
malls are planning to restrict the
number of shoppers at any point of
DISTRIBUTORS TO
SUPPLY MILK SO still only 50-70% ers came from various states, hur-
ting supplies. Even today, supply of
time. Large retailers are also iden-
tifying separate rooms or areas to
WE HAVE ENOUGH
MANPOWER food and other essential offerings isolate people with Covid-19-like
Rasul.Bailay@timesgroup.com is curtailed with availabilities ho- symptoms. They are looking to
RS Sodhi MD, GCMMF vering at 50-70%, companies said. email or text bills to consumers,
New Delhi: Retailers and consu- CII has asked the government to rather than handing out printouts,
mer companies want the govern- prioritise return of truck drivers to minimise contacts.
Industry Wishlist ment to run special trains and bu-
ses to bring back thousands of mig-
“We have to make sure the mall is
more hygienic, frequently saniti-
Adani, Cube, PFC, REC Plan to offer
Meanwhile, Say they will KUMAR RAJAGOPALAN
retailers ask
govt to allow
limit shoppers
inside; use
rant workers to augment the cur-
rently hamstrung supply chain for CEO, Retailers Association of India
sed every landing, have enough
masks,” said Mukesh Kumar, the IRB eye Worli Concessional Loans
essential items.
Since people are CEO of Infiniti that operates two
malls to
open in low-
emailed bills
to minimise
Also, retailers are requesting the
government to allow fashion and working out of
malls in Mumbai. “We are looking
at the option of limiting the num-
Sea Link
luxury outlets, and even malls to ber of footfalls into the malls also.”
risk areas contact
Toll Contract Medium-term loans
Request to include utensils,
open in low-exposure-risk areas, homes so things Arvind Mediratta, the head of the

baby products, stationery

even as there are indications that
the lockdown would be extended, like computers and mobile
Ficci retail committee, said the in-
dustry body had requested the state
for discoms will have
Reghu Balakrishnan & Indulal PM
among essentials but with a plan to gradually lift it.
The essential supply chain was phones should also be on
governments to operate limited num-
ber of public transportation like bu-
2-year moratorium
CII asks govt to prioritise severely disrupted in the first two ses, allowing only essential service Mumbai: A bunch of strategic in-
return of truck drivers weeks of the lockdown that began the essentials list workers and pass holders to travel. vestors including Adani Enterpri- Sarita.Singh@timesgroup.com
ses, IRB Infrastructure and Cube
Highways are likely to bid for toll New Delhi: State-run Power Fi- ministry on relaxing the FRBM
MALL OWNERS MOVE FINMIN
Transfer Pricing Issues rights of Rajiv Gandhi Sea Link
Bridge, popularly known as Band-
ra-Worli Sealink, said multiple pe-
nance Corp and REC Ltd will of-
fer medium-term concessional
loans with two-year moratori-
limits for some states and easing
the present cap on lending by
banks to discoms for working ca-
Mall Owners Seek Claim from May Crop Up at MNCs ople aware of the development.
Maharashtra State Road Deve-
lopment Corporation (MSRDC)
um to state electricity distribu-
tion companies, which will be
backed by budgetary support
pital requirements. “The discus-
sions have been very positive.
The power ministry will soon flo-

Insurers for Biz Interruption Many multinationals has invited bids for the new opera-
tor for the most expensive toll road
within Mumbai city as MSRDC’s
from state governments.
This would require easing
FRBM limits for some states that
at a cabinet note on this issue,” a
senior government official said.
Currently, banks and financial
contract with the previous conces- have breached their borrowing institutions can lend only 25%
Kailash.Babar @timesgroup.com
are renegotiating, sionaire, MEP Infrastructure De- limits. The proposal, aimed at in- of a discom’s revenue in the pre-
velopers, expired on January 30. fusing liquidity in the power sec- vious year as working capital.
Mumbai: Mall owners have knocked slashing mark-ups MEP Infrastructure Developers tor amid the coronavirus pande- The borrowing limits of Power
on the doors of the finance ministry and other operators, such as PNC mic, has met in-principal nod Finance Corp and REC are also
and Insurance Regulatory Develop- paid to India entities Infratech and Sahakar Global, are from top authorities and will so- likely to be enhanced accor-
ment Authority (IRDA) to get insu- also keen to submit the bids for toll on be put forth the Union cabinet. dingly, he said.
rance companies to honour business operation, which will be offered ET was the first to report on “The loans will be given for a pe-
interruption insuran- Sachin.Dave@timesgroup.com for 19 years till April 8 that the government is riod of 7 -10 years and will come
ce claims to offset los- March 2039. SBI Ca- working on a package to offer lo- with a moratorium of two years
ses suffered during Mall owners Mumbai: Indian entities of pital is running the ans to state power distribution during which the interest will be
the lockdown period. are saddled many multinationals, which entities charge to parent or fo- mandate for companies to help them clear paid. Such loans will help infuse
Business interruption with lower receive a fixed margin or a reign entities. This will lead to MSRDC. The cont- select dues of electricity gene- liquidity in the distribution and
insurance covers lost earnings as mark-up from their parents, fe- transfer-pricing issues as the ract carries an ex- ration plants to prevent blacko- generation space of the power
revenues and also the against ar they could face transfer-pri- taxman may not accept reduc- pected bid value of uts as the projects face a severe sector,” another official said. De-
MSRDC may
recurring costs of the mounting cing issues due to Covid-19. tion in mark-up,” said Rohit Ja- to extend
Rs 2,940 crore (about liquidity crisis. pending on the margins, the lo-
business while its shut business This is because the MNCs are in, partner at law firm ELP. the deadline $411 million). The power ministry has held ans can be given at atleast a con-
or out of commission expenses ught insurance companies to reim- renegotiating and slashing Multinationals including Go- for bids, the However, MSRDC, consultations with the finance cession of 4%-5%, he said.
in cases of a disaster. burse actual recurring expenses in- these fixed mark-ups, which ogle, Microsoft and IBM could value of which has called for
Insurance companies are refusing curred by mall owners one quarter the tax authorities may see as face these issues, say industry which is bids with a deadline
to accept claims arising out of shut-
down saying exclusion of pande-
after the normalcy under the said
insurance cover. ET has reviewed a
an anomaly and question.
Transfer pricing is essential-
trackers. For many companies,
the mark-ups are in the range of
estimated at of May 12, is likely to
`2,940 crore extend the date in Wind Turbine Cos Halt Production
mics and closure due to this direc- copy of this letter. ly the price paid by the parent 18-20%. The fear is that mark- the wake of the lock- lockdown extends beyond April
tion does not constitute physical Mall owners have also requested to company or its foreign arm to a ups could fall to as much as down. But the prospective bidders Kaavya.Chandrasekaran 14,” Atin Jain, associate, Bloom-
loss or damage. roll back the recent hike in the local subsidiary for transac- half, leading the taxman to qu- are already preparing themselves @timesgroup.com bergNEF, told ET.
In a letter to both finance ministry insurance premium rates by the Ge- tions among them. In most ca- estion the dip and slapping ad- for the coveted contract. He said, “Almost all wind tur-
and IRDA, the Shopping Centers neral Insurance Corporation of In- ses, the local entity charges a ditional tax. This is set to im- Mails sent to Adani and Cube spo- Bengaluru: The lockdown has bine firms and their part supp-
Association of India (SCAI), has so- dia (GIC). mark-up at arm’s length, or at a pact almost all multinationals kespersons did not elicit any re- blown away India’s wind energy liers in India have shut their
price as per industry average. that have captive units in India sponses while IRB spokesperson target for 2020, as all major turbi- factories due to the lockdown”.
Industry trackers said many and operate on a fixed mark-up declined to comment. "We have not ne manufacturers, including Sie- Siemens Gamesa’s spoke-
To book your advertisement , multinationals facing margin model, said tax experts. yet taken any decision on exten- mens Gamesa, Vestas, GE and In- sperson said, “Operations at
UNIESinte_ call 9278812222 pressures due to the coronavi- “Margins for the year are set at ding the deadline and its prematu- ox Wind, have suspended produc- our manufacturing facilities
rus outbreak were renegotia- the beginning of the year rely- re to discuss," said Radheshyam tion, industry executives said. will be suspended during the
ting these mark-ups. This wo- ing on previous-year comparab- Mopalwar, vice chairman and ma- BloombergNEF has lowered 21-day lockdown period.”

real estate
uld mean the margins for Indi- le margins. This would probably naging director of MSRDC, witho- its expectation of how much An email query sent to Vestas
business TO
an entities of the MNCs could not be the case for FY20-21 as the ut sharing further information. wind energy capacity India will remained unanswered till as of
BOOR come down. The tax authoriti- results will be severely impacted As per the original plan, MSRDC add in 2020 to 1.95GW from an press time. GE said it is focused
es, experts said, might not ag- due to substantially weakened was expected to complete the pro- earlier forecast of 2.56GW. “We on employee health. “GE’s No.1
AN ree with the markdowns. business environment in light of cess by end of June quarter. Howe- cut that down by 24% due to the priority is the health and safe-
ANNOUNCEMENT “There is going to be an im- Covid-19,” said Amit Maheshwa- ver, this could be extended to Sep- 21-day nationwide lockdown. ty of our employees, and our
pact of Covid-19 on cost-plus ri, a partner at tax consultants tember considering the lockdown, There is a further downside risk primary focus currently is to
DISTRIBUTORSHIP/ IN THIS mark-ups that all the Indian AKM Global. one of the sources said. to our current forecast if the take care of them.”
stocking required for b u l k y
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Broadcasters and Distributors told to Avoid Blackout

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since mid-March
middle of March, regulator TRAI, the ministry, ped by 80% or more,” said Ar-
since the social
lockdown, have been asked by the times”. when the social dis- and the MSOs to either adopt vind Prabhoo, president of
distancing norms
ministry of information and The drop in collec- tancing norms kicked post-paid services for April or to Maharashtra Cable Operators

Book your advertisement cal

kicked in and the
broadcasting to continue pro- tion is in part be- in. The lockdown extend credit facilities to cable Association (MCOF).
lockdown further
viding “uninterrupted services” cause not many added to their woes
added to their
to subscribers. subscribers make after housing comp-
woes after societies
The monthly collections of payments digitally. lexes imposed entry

9278812222k
cable TV services have dropped
sharply—some estimates say by
70-80%—as the operators have
not been able to collect dues
because of the coronavirus-led
lockdown. Indian cable TV ope-
rators often 'switch off' channels
in case of non-payment of dues.
In a notification issued late on
Saturday, the ministry said
“stakeholders are advised to
imposed entry
Suresh Kamat, a restrictions.
restrictions (Mechanical & Electrical Engineering Department)
cable operator in In the broadcast
Mumbai, said, distribution chain, ISO 9001 :2015 , ISO 14001:2015 , ISO 27001:2013 , ISO 45001 :2018 CERTIFIED
“Despite all the talks about cable operators need to collect TENDER NOTICE
digital payments, most of my dues fast to be able to pay their
Online Tenders (in Two Cover System) are invited by JNPT for the work of
subscribers pay their monthly MSOs upfront if they wish to "Supply, Installation , Testing and Commissioning of Street Light Poles
cable bill by cash or cheque. activate any channel/package, on the Custom Scanner Road near Custom Building Approach Road R3
Only five customers out of the whereas all MSOs have a 30-60- & on Slip Road of PUB Junction Flyover along with Allied Works in
100 homes where I have set-top- day credit window to make pay- JNPT' under Tender No. : JNP/M &EEIUS/EM/STLT/2020/E-287. The
boxes have paid online. I am in ments to broadcasters. For in- detailed Tender Notice & Tender Document is available on the JNPTs website :
no condition to pay to the multi- stance, at the end of March, http://www.jnportgov.lnandhttps :/Ieprocure.gov.irdeprocure/app
Chief Manager (M&EE)
THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM
KERALA MUCH BETTER OFF THAN MAHARASHTRA; BOTH HAD NEARLY THE SAME NUMBER OF INFECTIONS AT ONE TIME...
Spreadsheet: A Tale of Two States
Maharashtra has seen 16-fold jump in number
of positive cases since March 26, whereas
Kerala appears to be flattening the curve
Divya.Rajagopal
@timesgroup.com
Mumbai: Maharashtra, which
started with the same number of
Covid-19 positive cases as Kerala,
has since seen a jump of nearly 16
times in the number of infections
— this when the southern state lo-
oks at bending the Covid-19 curve.
On March 26, a day after the natio-
nal lockdown was announced, Ma-
harashtra and Kerala reported al-
most the same num-
ber of cases at 122
and 120, respectively.
Both the states had
ANALYSIS
similarities, in
terms of people arriving from the
Middle East as well as concentra-
tion of cases in a few districts. Im-
portantly, both states have carried
out a number of tests, though per
million population Kerala's is hig-
her. Yet, 18 days after the lock-
down, the number of cases in Ma-
harashtra has jumped 16 times to
1,982, including 149 deaths. In com-
parison, Kerala has 374 including
2 deaths. In Kerala, almost half of
these 374 persons have recovered.
As Maharashtra extended its
6 Employees of
Mumbai’s Taj
Hotel Test +ve
Anumeha.Chaturvedi
AFP
@timesgroup.com
New Delhi: Six employees of
IHCL’s Taj Mahal Palace Hotel
in Mumbai have tested positive
for Coronavirus after the hospi-
tality major started testing its
hotel staff proactively.
IHCL, which had allocated ro-
oms for medical workers and is
offering quarantine facilities
through various hotels is testing
employees at these properties.
The hotel company said about
500 staff members at its Mumbai
hotels have been tested so far. Of
these, six tested positive.
"In keeping with our values of
being a responsible company
and as a matter of abundant pre-
caution, we have been proactive-
ly ramping up testing criteria for
our employees...Those who have
tested positive mostly were
asymptomatic showing absolu-
tely no signs of illness. However,
staff testing positive and symp-
tomatic were duly hospitalised
and others who were in contact
with them – have immediately
been put in quarantine in accor-
dance with World Health Orga-
nization (WHO) norms and gui-
delines issued by the local go-
vernment authorities,” said an
IHCL spokesperson.
The President Hotel, Taj Lands
End, Taj Santacruz and Ginger
Andheri are the other IHCL pro-
perties hosting the medical fra-
ternity in close cooperation with
BMC in Mumbai.
Drive-through Test
Centres in Mumbai
Mumbai: The financial capi-
tal, home to the maximum Co-
vid-19 cases in the country, on
Sunday witnessed the launch
of its first drive-through tes-
ting sites.
SRL Diagnostics, which has
launched three such facilities
in the city, said a test sample
will be collected within 10 mi-
nutes without a person nee-
ding to step out of his car and
results conveyed the same or
next day over e-mail. — PTI
‘Govt Using Telemedicine to Reduce Doctors’ Exposure’
Details of patients, who are otherwise healthy, are sent to doctors who then advise workers on how to manage the patients
Prerna.Katiyar@timesgroup.com
New Delhi: The government is
increasingly using telemedicine
to curtail contact between doctors
on Covid-19 duty and patients to
cut exposure, All India Institute of
Medical Sciences (AIIMS) New
Delhi director Randeep Guleria
said on Sunday.
“For Covid-19 positive patients
who are otherwise healthy, we have
given a WhatsApp number at
AIIMS Jhajjar on which they are
being advised,” Guleria told ET.
“Patients’ vitals and ECG, X-ray
and the ventilator setting are
transmitted to the doctor who then
advices the workers present at the
facility on how to manage the
patient without going to the ICU.”
He said there isn’t enough data to
prove that the entire country is in
Stage 3 of Covid-19 transmission.
lockdown till April 30, Mumbai,
which has become the epicentre of
the Covid-19 in the state, continues
to see a rise in the number of posi-
tive patients. More troubling, the
city also has the highest fatality
rate in the country. Epidemiolo-
gists, and physicians that ET spo-
ke to, said that on ground the city
appears to be faltering in early de-
tection and screening. Despite the
fairly high number of tests in the
state, experts say that the city co-
uld be detecting cases late, leading
to deaths.
It is possible that
there seems to be late
and not very effecti-
ve treatment in case
of severe illness, said Dr Giridhara
R Babu, an epidemiologist with the
Public Health Foundation of India.
Maharashtra has collected 36,771la-
boratory samples of which 34,094
were negative for coronavirus as on
April 11. Maharashtra has conduc-
ted 298 tests per million.
On the other hand, Kerala has
tested 14,163 samples out of which
12,818 came as negative. Kerala has
conducted 401 tests per million —
this is a much higher number of
tests per million compared to Ma-
Don’t Worry, HCQ HCQ Production
Info’s a Click Away Scaled Up : Zydus
Portal to help find where to get the drug
Teena.Thacker
@timesgroup.com
New Delhi: The government is
set to launch a portal that will gui-
de users of hydroxychloroquine
— one of the drugs being tried for
treating Covid-19 patients — to the
nearest pharmacy that has it in
stock, people in the know told ET.
The move will likely ease the wor-
ries of thousands of Indians who
have been prescribed the drug for
certain ailments — including ma-
laria and autoimmune disorders
like rheumatoid arthritis and lu-
pus — but are facing difficulty in
getting it after India lifted a ban on
its export last week.
India’s drug pricing regulator,
National Pharmaceuticals Pri-
cing Authority (NPPA), has as-
ked all druggists and chemists in
the country to start putting in de-
tails on the portal, which is likely
to be named Covid-med.
To start with, details of hydrox-
ychloroquine and azithromycin
will be put in and later it may be
expanded to other medicines.
“Those who need hydroxychloro-
quine will find it easier to know
Keeping Tabs
Information on HCQ
to be keyed onto the
portal every day
Details on IPCA and
drug will be Zydus
available are major
district- manufacturers
wise of HCQ
IT platform to monitor
availability of drug at all
distribution channels
Gilead’s Experimental Drug A Ray of Hope
Bloomberg
Gilead Sciences’ experimental
drug for patients with severe Co-
vid-19 infections showed promise
in an early analysis, raising tenta-
tive hope that the first treatment
for the novel virus may be on the
horizon. The report published in
the New England Journal of Medi-
cine tracked 53 people in the US,
Europe and Canada who needed
respiratory support, with about
half receiving mechanical venti-
lation and four on a heart-lung by-
Guleria also warned general
public against taking hydroxych-
loroquine (HCQ) without presc-
ription, saying it may cause more
harm than good. “General public
need to be careful as this has
side-effects such as irregular
heartbeat, stomach gastroenteri-
tis, toxic liver disease and/or
allergic reactions,” Guleria said.
He said a large number of pati-
Newspapers are
safe. I would encou-
rage everyone to read
the newspaper. There is
really nothing to worry
about it
RANDEEP GULERIA
Director, AIIMS
A Vast
Difference
No. of Cases (Mar 26)
122 120
Maharashtra Kerala
Total Cases (April 12) Total Recoveries (April 12)
1,982 374
Maharashtra Kerala Maharashtra Kerala
harashtra.
Nonetheless, compared to the na-
tional average, the reasonably
high testing numbers in Maha-
LATE CAN BE TOO LATE
Mumbai could be
detecting infected
cases late, leading to
deaths, say experts
the available stock and where is it
available at the click of the mou-
se,” said a senior official who is
aware of the development. The
data on availability will be upda-
ted every day, the official said, ad-
ding that the information will be
available district-wise.
“The objective is to make sure
that the drug is available to those
who need it. The IT platform will
monitor availability of the drug
at all distribution channels i.e.
C&F agents, depot, distributors,
wholesalers and retailers,” said
another official.
Joint drug controller S Eswara
Reddy has sent out a notice to all
drug sale licence holders to regis-
ter on the platform.
NPPA chairperson Shubhra
Singh told ET that India has
“enough stock of API and manu-
facturing capacity of HCQ for-
mulation to meet country’s requ-
irement as well as export de-
mands.” A team led by India’s
drug pricing regulator is revie-
wing the available stocks on a da-
ily basis and will cater to export
demands only after satisfying do-
mestic consumption, Singh said.
70%
India’s share in
annual global
production of
API
IPCA said to
have supplied
3 crore tablets
pass machine. Eight additional pa-
tients were left out of the analysis:
one due to a dosing error and seven
because no information was avai-
lable on how they fared.
All received remdesivir for up to 10
days on a compassionate use basis,
a programme that allows people to
use unapproved medicines when
no other treatment options are av-
ailable. Over 18 days, 68% of the pa-
tients improved, with 17 of the 30
patients on mechanical ventilation
being able to get off the breathing
device. Almost half of the patients
studied were ultimately dischar-
ents, frontline workers and close
contacts are being given HCQ
“based on expert group and ICMR
guidelines that it may be useful
for the three categories of people
as there is no other treatment
available”. But it’s no panacea for
Covid-19. “Data from France,
China and some
other labs is
very thin to
conclusive-
ly prove the
efficacy of
HCQ,” he
said.
Dr Guleria
added that
in some
Deaths (April 12)
208 142 149 2
Maharashtra Kerala
rashtra, which has also seen more
deaths indicates that the surveil-
lance in the state might not be ade-
quate. “It is possible that they
might be testing more of people
whom they may not have to and
not detecting the cases earlier eno-
ugh and not treating the cases well
enough”, R Babu said.
Dr Rahul Ghule, founder of the
startup 1Rupee clinic, has deploy-
ed 50 paramedical and trained
physicians on ground to screen pe-
ople for fever or Covid-19 symp-
toms. “We know that the BMC is
not able to get its staff door-to-do-
Prerna.Katiyar
@timesgroup.com
New Delhi: Zydus Cadila chair-
man Pankaj R Patel has said the
company has ramped up its ca-
pacity for manufacturing hyd-
roxychloroquine (or HCQ) by
nearly 10 times since the outbre-
ak of Covid-19.
India manufactures 70% of the
world's supply of hydroxychlo-
roquine— Zydus and Ipca Labs
being the two biggest players.
“Till Covid-19 happened we we-
re manufacturing HCQ for dise-
ases such as Lupus and rheuma-
toid arthritis; its market was
restricted. But now when we ne-
ed it for Covid patients we have
ramped up our capacity multi-
ple times,” Patel told ET, spea-
king over the phone.
“Earlier, we used to manufactu-
re 2-4 tonnes API every month
for domestic supply as well as ex-
ports but this month itself we
will be meeting our increased
domestic target of 20 tonnes API
or 10 crore tablets. The target for
next month is 30 tonnes API or 15
crore tablets which we will com-
fortably achieve.”
Patel explained that a single he-
althcare worker would need 14 tab-
lets of HCQ, quoting ICMR, and
Zydus’ production would be suffi-
cient for more than 7 lakh indivi-
duals. He added that the company
itself has stopped exporting the
drug. AIIMS director Dr Randeep
Guleria separately told ET that as
a prophylaxis a person will need
nine (400 mg) tablets and asympto-
matic contacts of a confirmed ca-
se would need five (400 mg) tablets
of HCQ.
The company has received or-
ders from Central and many sta-
te governments for roughly 15
crore tablets for this month. Pri-
cing will not be higher than nor-
ged, while 13% died. Mortality was
highest among those who were on a
ventilator, with 18% of them dying.
“We cannot draw definitive con-
clusions from the-
se data, but the ob-
servations from
this group of hospi-
talized patients
who received rem-
desivir are hope-
ful,” said lead author Jonathan
Grein, director of hospital epide-
miology at Cedars-Sinai Medical
Center in Los Angeles, in a state-
ment from Gilead.
cases HCQ in combination with
Arithomycin or even steroids are
being given for serious patients.
"In some centres, a coctail of
drugs is being given based on
limited literature coming out of
China and other countries."
Clinical trials have begun in
India to check the efficacy and
side effects of HCQ on patients as
well as healthcare workers under
what is called pharmacovigilan-
ce, Guleria said.
The World Health Organisation
has also started global clinical
trials called SOLIDARITY under
which it is testing four drugs:
remdesivir; lopinavir/ritonavir;
lopinavir/ritonavir with inter-
feron beta-1a; and chloroquine or
hydroxychloroquine.
About the dosage of HCQ, the
AIIMS doctor said that as a pro-
phylaxis, a person would need total
nine (400 mg) HCQ tablets (twice on
Covid-19 Impact: Pharma  5
As on April 11
TOTAL
LAB TESTS
Maharashtra
36,771
Kerala
14,163
TESTS
PER MN
Maharashtra
298
Kerala
401
or for screening; so, we offered to
start clinics and screen people on
behalf of them. But our proposal
is still stuck with the commissio-
ners,” Ghule told ET. Messages
and phone calls to BMC commis-
sioners Praveen Pardeshi and ad-
ditional commissioner Suresh Ka-
kani remain unanswered.
His proposal to BMC was that his
team of doctors will screen 10 lakh
people in one week at `5 per per-
son, but there were disagreements
at the top level on the screening
strategy.
Earlier, we used to
manufacture
2-4 tonnes API every
month, but this month
itself we will be
meeting our increased
domestic target of
20 tonnes API
PANKAJ R PATEL
Chairman, Zydus Cadila
mal, “In fact, we are supplying
the drug at a lower price to the
government,” Patel added.
On being asked about supply
chain disruptions in few cities
he said, “This is a prescription
drug that can’t be bought other-
wise. To address the supply cha-
in issue, if any, we are gradually
going to supply the drug directly
to the market as well. But since
there is enough stock with the
government, there is absolutely
no need to panic or worry.”
He also added that manufactu-
ring of drugs in Sikkim is happe-
ning at 100% capacity. At other
places, the production capacity
is 60-70% which is being scaled
up every day. Zydus has plants in
Baddi, Ahmedabad, Daman, Sik-
kim and Goa for formulations
and in Vadodara and Anklesh-
war for APIs. Manufacturing of
HCQ tablets is happening at Ah-
medabad, Sikkim and Baddi.
The Foster City, California-based
company provided the medication
and also helped analyze the results.
Some scientists have expressed
skepticism with regard to the re-
sults. “The data from this paper are
almost uninterpretable,” Stephen
Evans, a professor of pharmacoe-
pidemiology at the London School
of Hygiene & Tropical Medicine,
said in an emailed statement.
“There is some evidence sugges-
ting efficacy, but we simply do not
know what would have happened
to these patients had they not been
given the drug.”
the first day and then once a week
for seven weeks) while close con-
tacts of Covid-19 positive patients
would need five tablets (twice a day
on Day 1and then once a week for
the next three weeks).
On the speculation that new-
spapers could be carrier of the
virus, Dr Guleria said there is
really no evidence to suggest that
newspapers are transmitting
Covid-19. “If one is really concer-
ned, one can keep the paper in the
sun for sometime or clean it with
an antiseptic. More importantly if
you are touching any surface and
not just paper, just wash your
hands. The virus can’t reach your
respiratory track unless your
hands touch your face after tou-
ching a contaminated substance.
But newspapers are safe. I would
encourage everyone to read the
newspaper. There is really not-
hing to worry about it."
CONTACT-TRACING APP RAISES CONCERNS
‘Aarogya Setu’s Not
All that Healthy for
a Person’s Privacy’
Purpose of the app and
who will access the
data are not clearly
stated: privacy groups
Venkat.Ananth@timesgroup.com
Bengaluru: Even as the govern-
ment pushes for aggressive adop-
tion of its contact-tracing app, Aaro-
gya Setu, privacy-focused groups
such as the Internet Freedom Foun-
dation (IFF) are raising alarm over
its compliance with the globally-
held privacy standards, while also
recommending privacy prescrip-
tions for these technology-based in-
terventions.
In a detailed report and analysis on ANIRBAN
contact tracing apps, which ET has be used beyond the purpose it was
accessed and reviewed, the New Del- created for and evolve into a “per-
hi-based IFF raised concerns about manent architecture” without clari-
information collection, purpose li- ty and limits. “It becomes problema-
mitation, data storage, institutional tic when there is collating of data on
divergence, and transparency and the central server, and once that gets
audibility. These concerns come entangled with other databases. We
amid affirmative claims by certain don’t know how long this pandemic
sections of the government and will last, but once it is over, the data
technology volunteer groups that must be deleted,” added Deb, while
the app was designed with a “priva- alluding to the Singapore app,
cy-by-design” approach. which “clearly specifies that it will
For instance, the report observed not be used to enforce lockdowns
that the app’s privacy policy “does and other such purposes.” There ha-
not specify which departments or ve been suggestions from certain
ministry or officials will be the ones sections of the government that the
accessing that data”, with “a lack of data must be deleted immediately
specificity adding to concerns of once this pandemic is over.
overreach”. The report also raised concerns
Sidharth Deb, the IFF’s parlia- about Aarogya Setu’s use of loca-
mentary and policy counsel, also tion data via GPS trails (in addi-
the author of the report told ET, tion to Bluetooth), which it adds,
“In Singapore, for instance, the mi- deviates from “privacy-focused
nistry of health has access to data global standards”, which are rest-
of its contact-tracing app and deci- ricted to Bluetooth-based techno-
sion-making powers, besides clear- logy, which can match devices by
ly stating its pur- not revealing the
pose of concent- exact location.
ration towards di- GOVERNING USAGE Such technologi-
sease control and es have been in
spread. In India’s
case, the disclo-
No legal frame- use, in the case of
the TraceToget-
sed purpose for work to govern app her app (Singapo-
the app is vague re), and the fram-
enough for the go- beyond privacy ework suggested
vernment to re- by the Massachu-
purpose it or ex- policy, terms of use setts Institute of
pand its scope.” Technology.
Currently, there “GPS trails are
is no legal framework that governs not reliable in indoor settings — in
the Aarogya Setu app, beyond the mass-transit situations like the
privacy policy and the terms of use. metro etc. Bluetooth is preferred
Deb added, “The involvement of from a privacy-respecting perspec-
the health ministry is minimal or tive,” added Deb.
negligible, besides it being steered Besides, the report added that
by other departments and institu- there are also risks of misidentifi-
tions in the government. Even in the cation (or a false-positive) if the de-
case of the Apple-Google announce- vice is switched or is shared betwe-
ment of its joint partnership, there en people. The report highlights
is an intent to work with public he- how algorithm-based predictive
alth authorities who are steering models to determine if an indivi-
the effort. Therefore, it certainly se- dual has tested positive for devia-
ems like there is a degree of institu- tes from how contact tracing usu-
tional divergence when compared ally works and has a material im-
with international examples.” pact on people's civil liberties.
However, government sources said There are also concerns of infor-
that the medical and health-related mation collection, far beyond ones
aspects of the app are “strictly in collected by the Singapore and the
consultation with the Ministry of MIT app. While the government has
Health and Family Welfare,” while repeatedly insisted that all the data
Meity largely focuses on the data collected by the app would reside
aspect as the nodal department. within the device locally, it equally
Purpose limitation has become a says that in certain conditions (ex-
key point of concern among civil so- ceptions) the information could be
ciety activists — that the app could uploaded to a cloud server.
ICMR Releases ‘Very Few
Plasma Trials Green Zones
Protocol, Seeks as Per Current
Registrations Methodology’
Divya.Rajagopal
@timesgroup.com
Anandita.Mankotia
@timesgroup.com
Mumbai: The Indian Council of New Delhi: An initial interpre-
Medical Research has announ- tation of Indian Council of Me-
ced the protocol of the trial for dical Research (ICMR) data by
plasma therapy for critically ill the National Disaster Manage-
Covid-19 patients. This will pave ment Authority (NDMA) has fo-
the way for the first official clini- und that there are barely any
cal trial in India towards finding areas which are marked ‘green
a cure for the disease. zones’, or Covid-19 free zones,
The ICMR has asked medical across the country, officials said.
institutions, including those of This adds to the difficulty of
state governments, which are in- planning how the country sho-
terested in participating in this uld exit the current lockdown.
trial to register themselves with An official said that with the
the clinical trial ethics commit- methodology followed, almost no
tee, and the Drug Controller of zone would be counted as green.
India. It is unclear “The interpreta-
if private organi-
sations can parti-
cipate in the trial.
tion rests on a we-
ighted average of
six parameters col-
lected district wise
EXPERIMENTAL including the num-
PROCEDURE ber of people older
Move will This adds to
“Convalescent pave way for the difficulty than 65, population
plasma is an expe- the first in planning density, number of
rimental procedu- active cases, num-
official how the
re for Covid-19 pa- clinical trial in ber of people who
country
tients. Hospitals India towards should exit came in direct con-
and institutions finding a cure the current tact with Covid-19
planning to provi- for disease lockdown patients and medi-
de this modality of cal facilities…(the
treatment should do so in a clini- data) actually shows even the pre-
cal trial with protocols which are viously green zones are now
cleared by the institutional et- pink,” the official explained.
hics committee,” the ICMR said (Pink is the least-risk zone.)
in a statement on Sunday. The However, the official said, since
primary objective of this study the rapid antibody test results
is to assess the safety and effica- were coming out every few hours,
cy of therapeutic plasma ex- and this data was dynamic, the
change in Covid-19 patients. government would base its even-
The therapy works on the scien- tual decision of lockdown exit ba-
ce that the blood of a recovered sed on the recent most data avai-
Covid-19 patient would have de- lable. “So even within cities, the-
veloped antibodies against the re could be red zones or high-risk
coronavirus and when these an- zones which would then be conta-
tibodies are injected to an infec- inment zones, so this might go
ted person, these would neutrali- even deeper than district,” a se-
ze the virus on his body. cond official said.
6  Covid-19 Impact: Startups & Tech
THE FLOW OF CREDIT FROM LARGER NBFCS AND BANKS GRINDS TO A HALT
For comprehensive and
insightful stories about all
things startups and technology,
log on to www.ettech.com
Dismal Loan Recoveries Leave
Tweet OF THE DAY
Lending Startups in Red Zone
Aditi Shrivastava &
Biswarup Gooptu
Bengaluru | New Delhi: India’s on-
line lending startups that have been
providing personal loans to blue-col-
lared workers and unsecured loans
to small enterprises are facing a
bleak future, with consolidations
NAVAL and shuttering of operations antici-
pated across the space.
@NAVAL Most fintech lending companies
Better “wrong” alone that also hold non-banking financial
company (NBFC) licenses are ex-
than “right” with pected to take a significant hit to
the herd their loan books with repayment col-
lections slowing down in the after-
math of Covid-19 outbreak and the
lockdown to contain it, while for oth-
Tech Buzz ers the flow of credit from larger
NBFCs and banks are expected
iPhone SE to grind to a halt, industry ex-
perts said.
maybe Out With investors unlikely
to pump in more capital on
this Week the back of dismal loan re-
coveries, businesses and
SAN FRANCISCO: New portfolio managers have
started approaching
iPhone SE may be larger players in the
launched this week space for a potential
and sales would begin deal.
immediately, accord- “We have already been
ing to Apple analyst approached by a few
players who have a dire
Jeff Pu. iPhone 12 cash position to ac-
models will likely be quire them,” said Bala
pushed out slightly
due to travel curbs,
which could result in
delayed availability of
the highest-end 6.7-
inch model. —IANS
C-CAMP Picks 13 Anti-Covid Ideas
It includes respiratory devices, air & surface sanitising tech and cold chain swab sample transport
Our Bureau
Bengaluru: A special accelerator
focused on Covid-19 has identified
13 innovations, including assisted
respiratory devices, air and sur-
53.7 m
Shipments of PCs,
face sanitising technologies and a
cold-chain viral swab sample
transport that could be deployed
to tackle the epidemic.
notebooks and work- The accelerator, set up jointly by
stations in Q1. — Canalys the Centre for Cellular and Molec-
ular Platforms (C-CAMP), United
Quick Byte Nations Health Innovation Ex-
ANIRBAN BORA
change and startup incubator So-
cial Alpha, is aimed at finding local
innovations for the fight against
the coronavirus outbreak.
The identified innovations in-
clude assisted respiratory devices
by Biodesign Innovation Labs and
Aerobiosys Innovations; and re-
mote vital parameter monitoring
systems from MedIoTek Heath
Systems, Cardiac Design Labs, Ne-
Zoom Bugs
Fetch $5-30k
on Dark Web
FB’s New AI
Model Pips
Google AI NEW DELHI Video meet
app Zoom has become a
treasure trove for
hackers who have zeroed in on it to
find privacy and security bugs and
make money. One hacker in-
terviewed by Motherboard, who
claims to have traded exploits
SAN FRANCISCO: A found in Zoom on the black market,
team from Facebook AI said that Zoom flaws typically sell
Research (FAIR) has de- for between $5,000 to $30,000.
veloped a novel low- The vulnerabilities— everything
from webcam or microphone
dimensional design
security to sensitive data like
space called RegNet
passwords, emails, or device
that outperforms oth-
information — are being sold on the
ers like from Google
Dark Web. However, hackers said
and runs five times that Zoom flaws don’t sell for high
faster on GPUs. RegNet figures compared to other exploits.
outperformed Google’s According to Devashish Sharma,
SOTA EfficientNet CTO at Flock, it is crucial for busi-
models, researchers
nesses to have to right security
said in a paper ‘Design-
apparatus in place to avoid confi-
ing Network Design dential organisational data falling
Spaces’. —IANS into the wrong hands. — IANS
Cos Want Sops to Cover more Electronic Items
AMMOFRORAFRODEPCr
Discover something now.
AH day. Every day.
with
Seeks extension of `41k-cr incentive scheme to TVs, set top boxes, ACs and washing machines
TIMESPR/ME Anandita.Mankotia
@timesgroup.com
Delhi: India Inc has sought an
extension of the `41,000 crore
Benefits Include production-linked incentive
(PLI) scheme currently directed
6 months to boost local mobile phone
s
worth 3599 manufacturing to also cover TV,
set top boxes, air conditioners
12 months and washing machines.
e
worth 3999 In its recommendations, seen
by ET, the Confederation of India
Industry (CII) also called on the
I JI ;Northi5OO government to declare the entire
electronics industry as an ‘essen-
y 3 months
tial industry’ as the Centre looks
FI T P A S S ' worth 31279
at ways to restart industries and
allow mobility of goods and
p lus exclusive offers to let you services restricted due to the
save up to 760 , 000 in a yea r
Covid-19 induced nationwide
lockdown.
“The entire electronics in-
dustry should be recognised as
Parthasarathy, CEO and cofounder
of app-based loan provider Money-
Tap. “We expect both the financial
services and fintech industries to
consolidate,” he told ET.
Jitendra Gupta, chief executive of
digital banking startup Jupiter, said
venture capital firms are “mentally
prepared for a few companies to go
Younger companies
that are less than two-
years-old and disbursing
`10-15 crore a month
are more at risk
GANESH RENGASWAMY
Partner, Quona Capital
mocare and Dozee, besides air and
surface sanitising technologies
from LeafBox Technologies, Bio-
moneta and Clensta.
With an acceleration in the
number of Covid-19 cases in In-
dia, the likelihood of hospi-
tals and ICUs becoming se-
verely congested is very
high. Exposure rates
among healthcare pro-
fessionals are also
high and resources
are quickly running
short. Remote monitor-
On the Right Path
ACCELERATOR SOME INNOVATIONS
AIMS TO FIND
LOCAL INNOVA-
∙ Assisted respiratory
devices
TIONS THAT ∙ Air and surface sani-
COULDHELP
tising technologies
Cities Ping Tech Firms to
Build Virus-fighting Tools
TechM, HCL and Infosys build tech solutions to tackle Covid-19 spread
Priyanka.Sangani@timesgroup.com
Pune:Indian cities are tapping tech
firms such as Tech Mahindra, HCL
Technologies and Infosys to build
solutions that could help them tack-
le the spread of Covid-19. The Pim-
pri-Chinchwad township, adjacent
to Pune in Maharashtra, turned to
its smart-city partner Tech Mahin-
dra in mid-March as it took steps to
reduce the spread of the coronavi-
rus after reporting a few initial
cases.
Within three days, Tech Mahindra
added new programmes to the exist-
ing smart-city infrastructure and
started helping with aspects like
contact-tracing and monitoring
people under home quarantine.
“Using tech along with communi-
ty-led initiatives … has helped con-
tain the growth in numbers,” Pim-
pri Chinchwad Municipal Corpora-
tion commissioner Shravan
Hardikar said.
In Pimpri-Chinch-
wad, it took 21 days
for the number of
Covid-19 cases to
double from 12, sig-
nificantly slower
than in other parts
of the country.
an ‘essential industry’, in as
much as the restarting of the
industries and mobility of goods
across the country (which have
been restricted due to the Co-
vid-19 outbreak),” CII said.
It said that the recently-notified
investment schemes to boost
manufacturing of mobile phones
in the country should be ex-
tended to the rest of the elec-
tronics manufacturing sector
including TV, set top boxes, air
conditioners and washing ma-
chines. It also asked for a lowe-
ring of the threshold—from the
CII Recommendations
Urges govt to
declare elec-
tronics industry
as an ‘essential
industry’
bust”. “They will prefer companies
where the founder has the ability to
not just save the company but also to
raise a new round,” he said.
“VCs are reaching out, and have
been scouting for potential M&As, or
even acqui-hires.”
Fintech lending startups were
among the major beneficiaries of
venture capital funding during 2019
with as many as 69 companies hav-
ing raised more than $593 million
across 92 rounds, as per data provid-
ed by Tracxn to ET.
“VCs are looking at their entire
portfolios, and stress-testing all of
them,” Siddarth Pai, founding part-
ner at 3one4 Capital told ET.
“They’re also looking at the compa-
nies which can get them maximum
gains. It’s a pure optimisation prob-
lem. They will be selective. A few of
them will actually go under. The
writing is already on the wall for
them,” he said.
Ganesh Rengaswamy, founding
partner, Quona Capital, said
younger companies that are less
than two-years-old and disburs-
ing Rs 10-15 crore a month are
more at risk. “How will they
convince their lenders on their
own creditworthiness, risk
models and collectibility from
their target segment?” he
said. “Their business models
are not mature enough when
it comes to underwrit-
ing with a unified central platform
could be a potential gamechanger
∙ Remote vital parame-
ter monitoring systems
∙Cold chain viral swab sample
transport for better diagnostics
in remote locations
“PCMC has been the first mover in
using the smart city infrastructure
to help with Covid-19 tracking,”
Tech Mahindra business head-
APAC Sujit Baksi said.
For instance, the company already
had cameras installed as part of a
Helping Hand
TechM HCL Tech
∙ Traffic cam- ∙ Control cen-
eras to track tre for Gautam
people Buddh Nagar
∙ Drones for ∙ Tracks home
aerial surveil- quarantine
lance cases
Infosys BPM ∙ Sets up a
call centre
∙ Tracks
people
current `100 crore to `20 crore in
turnover—in mobile and compo-
nent manufacturing.
The government last month
notified three schemes with
incentives totalling `48,000 crore
to boost mobile phone manufac-
turing in the country and the
dominant scheme of PLI has the
lion’s share of close to Rs 41,000
crore incentives to be spread over
three years.
Along with reviewing the ITA-1
list (1997), in order to boost
exports, CII has suggested
a short-term package to
Seeks
preferen-
Suggests a short- tial mar-
term package to ket access
boost competitive- for electronic
ness in electronics goods made
manufacturing in India
THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM
ing.” The development comes at a
time when the country’s larger shad-
ow banking industry continues to be
under pressure post the default by
cash-strapped IL&FS in September
2018, followed by the Dewan Housing
Finance and Yes Bank crises, which
in turn, has forced the central gov-
ernment to step in and manage the
crisis. Lending fintech NBFCs have,
in the past two years, aggressively
gone after markets that were tradi-
tionally unbanked, with last-mile fi-
nancing as their core strength.
According to experts, with the fo-
cus on creating larger loan books, the
loans to SMEs were based on cash
flows, and not on assets, while per-
sonal loans to individuals were
based on salaries, psychometric pro-
files and spending behaviour.
Saurabh Jhalaria, chief executive -
SME business at InCred, expects
early bounce rates for April going up
by 50% across the market. “Delin-
quencies across the board is expect-
ed to go up in the first half...but this
could be temporary till June,” he
said.
Four other startups that ET spoke
to shared similar estimates.
According to Khushboo Mahesh-
wari, CEO of Kaarva, delayed pay-
ments are almost double in direct-to-
consumer retail business. “Unse-
cured retail lending business is con-
sidering the risk to increase five
times on a cohort level,” she said.
in such scenarios, especially in iso-
lation wards and quarantine facili-
ties, C-CAMP said in a statement.
The accelerator has also identified
Blackfrog Technologies and Tessol-
Thermal Energy Service Solu-
tions in cold-chain viral swab
sample transport for better
diagnostics in remote loca-
tions, and Omicsgen Life Sci-
ences and OMG Innovations
under preventive interven-
tions that are certified by the
Ministry of Ayush.
“A few key players from in-
dustry are in constant touch
with C-CAMP to support Co-
vid-19 innovations. CIDA (Co-
vid-19 Innovations Deploy-
ment Accelerator) is a step in
that direction to help with im-
mediate deployment of solu-
tions wherever we can,” C-
CAMP CEO Taslimarif Sai-
yed had said in a previous
statement.
traffic-monitoring solution. These
have been used to track people
movement during the lockdown. It
is now using drones for aerial sur-
veillance and will soon roll out a
geo-fencing solution to make sure
that patients are restricted to a cer-
tain area. It is also providing infor-
mation on when stores and phar-
macies are open.
Tech Mahindra has also helped set
up a disaster management war
room which allows the core team to
track active patients. HCL Technol-
ogies has set up a control centre for
the Gautam Buddh Nagar district
administration in Uttar Pradesh to
help respond to citizens’ queries
about the coronavirus. “This centre
will play a critical part in our re-
sponse to the pandemic,” district
magistrate Suhas LY said.
In Karnataka, the government has
tapped Infosys BPM to set up a call
centre where agents call up people
who have come from overseas to en-
sure that they followed isolation
rules. In Hyderabad, the Telangana
government has a ‘Covid-19
Monitoring System App’,
built by a startup, Vera
Smart Healthcare, to iden-
tify and monitor people
who are in isolation and
provide real-time analytics.
boost competitiveness in elec-
tronics manufacturing. It has
proposed that a company setting
up base in India should not have
to select between being an ex-
port-led company or a domestic
manufacturer.
RED ALERT Cos seek urgent intervention of DoT
to ensure free movement of service teams
Telcos Warn of Full
Service Breakdown
in Virus Hotspots
Kalyan.Parbat
@timesgroup.com
ON THE EDGE
Kolkata: Phone companies have
warned of an imminent break-
down in telecom services across
Covid-19 hotspots where their
emergency teams are being
blocked by local authorities.
They have, in fact, sought the ur-
gent intervention of the Depart-
ment of Telecommunications
(DoT) to ensure their teams can
operate freely and ensure unin-
terrupted mobile and internet
connectivity in these sealed loca-
tions where the pandemic out-
break is severe.
Rajan Mathews, director gene-
ral of Cellular Operators Associ-
ation of India (COAI), in a letter
dated April 9 to telecom secreta- THE SITUATION IS CHALLENGING IN
DELHI, UP AND MAHARASHTRA
ry Anshu Prakash, said there co-
uld be a total breakdown of mobi-
∙ COAI wants govts to allow
le and internet services if telco
technicians are denied access to movement of staff and tower
telecom sites in the Covid-19 infra service providers to
hotspots. ET has seen a copy of ensure maintenance work
the letter. ∙ Asks telecom secy to moni-
The COAI represents Reliance tor developments and issue
Jio Infocomm, Bharti Airtel and instructions to state govts
Vodafone Idea.
“Telecom has been recognised
as an essential service in various 20-25% Estimated rise
government orders, but curfew- in mobile data traffic since the
like restrictions are being impo- lockdown started on March 25
sed by various state govern-
ments in areas sealed off as Co-
vid-19 hotspots where no move-
ment of telecom services person-
nel is being allowed, which can
lead to a complete breakdown in
NORMAN ROCKWELL,The Lineman
harashtra where numerous loca-
tions have been notified as hots-
pots where the Covid-19 outbreak
services,” Mathews said. is severe.
The situation, industry sources The COAI, in fact, has urged the
said, is particularly challenging telecom secretary to “monitor
in Delhi, Uttar Pradesh and Ma- developments and issue instruc-
tions to the concerned state go-
vernments” to allow movement
ROADBLOCKS of staff of telcos, tower infrast-
ructure service providers, fibre
Telecom has been
recognised as an
optic providers and (vendor)
partners to ensure fault repair
and maintenance work” can be
undertaken for ensuring unin-
essential service, but terrupted connectivity in these
sealed off areas. At press time,
curfew-like restrictions Airtel, Jio and VIL did not re-
spond to ET's queries.
are being imposed by In response to COAI’s letter,
DoT’s Maharashtra wing has al-
various state govts can ready urged the local state police
to cooperate with telecom opera-
lead to a complete tors and allow their field units to
breakdown in services maintain essential telecom ser-
vices in public interest in the Co-
vid-19 hotspots. Maharashtra is
RAJAN MATHEWS among the states worst hit by the
Director General, COAI pandemic.
Hackers Come Phishing,
Attacks up by 667%
As much of the world grapples
with the coronavirus, attack-
ers are taking advantage of
the widespread discussion of
Covid-19 in emails and across the
web. Barracuda researchers
have seen a steady in-
crease in the number of
coronavirus, Covid-19-re-
lated email attacks since Jan-
uary, but they have observed a re-
cent spike in this type of attack, up
667% since the end of February. Between March 1 and March 23, Barra-
cuda Sentinel has detected 4,67,825 spear phishing email attacks, and
9,116 of those detections were related to Covid-19, representing about
2% of attacks. In comparison, a total of 1,188 coronavirus-related email
attacks were detected in February and just 137 were detected in January
Types of Covid-related
How to Protect Yourself Spear-phishing Attacks
Scamming Brand impersonation
Be wary of any emails attempting to get
Blackmailing Business email compromise
you to open attachments or click links
1%
Watch out for any communications
claiming to be from sources that you 11%
normally would not receive emails from
Use caution with emails from organisations
you regularly communicate with 34% 54%
Find credible charities and donate directly
Number of Coronavirus-related
Spear-phishing Attacks
2000
1822
1500 1420
1000
527
500 167 220 255
0
February March
Doorknobs that
Kill Bacteria
in the Works
“A WTO compliant scheme for NEW YORK Imagine
providing an incentive of 4% of
FoB (freight on board) value,
that doorknobs at
income tax holiday on export your office or home
earnings and incentive scheme can instantly kill bacteria.
(including cost of finance) sho-
Bacterial pathogens can live
uld be at par with those adopted
by neighbouring countries on surfaces for days and
(Vietnam),” the industry body researchers have now devel-
has said.
oped a laser treatment
CII further sought preferential
market access for the electronic method that could potential-
goods manufactured in India for ly turn any metal surface
all government procurement as
this would be a shot in the arm
into a rapid bacteria killer —
for local manufacturing. just by giving the metal’s
“The entire Digital India plat- surface a different texture.
form, all central and state go-
vernment purchases and those The Purdue University
done by railways & PSUs pre- engineers have demon-
sents a very large market. Indian
strated that technique al-
manufacturing is technically
competent to serve these require- lows the surface of copper to
ments competitively,” CII has kill off bacteria. — IANS
recommended.
 ETMarkets
SMART
INVESTING

Insiders Make
the Most of
DeepCorrection,
Pile Up Their
Stocks
Beating Volatility WWW.ETMARKETS.COM
MUMBAI, MONDAY, 13 APRIL 2020

FUND MANAGERS AND ANALYSTS SAY while an extended lockdown was in the offing, absence of a roadmap from govt
for economic revival is a concern, and a relief package to aid worst-hit sectors and small businesses will be cheered ‘CONCERNS OVER PAYMENTS OVERBLOWN’

More than 4/5th of

Market Comeback May End Soon NBFCs Sufficiently
Without a Clear Course for Revival
Sanam.Mirchandani
should also play out similarly. If we
see number of cases flattening, Indi-
Liquid: Regulator
About 100 top NBFCs
Nifty 50
@timesgroup.com Share of Concerns 9200
an markets will also see a comeback
even if there is an initial disappoint- comfortably positioned
9111.9
Mumbai: The protracted lockdown MARKETS CONCERNED about ment over the lockdown extension.”
across the country poses a head- absence of roadmap from 3-WEEK
TOTAL 8750 The pandemic has infected more and qualify to get funds
wind to the stock market that was in- govt on economic revival 8253.8 than 8,300 people across India and
vigorated of late due to renewed fo-
SHUTDOWN
the count is expect to grow rapidly from banks if they face
reign buying and technical factors. STOCK INDICES FROM MAY HAVE in the coming days.
With the downturn expected to get gained 13% last FEBRUARY A DIRECT
8300
From February 20 to April 3, foreig- stress, say sources
deeper because of the continued week, aided 20 to April 3, ECONOMIC ners sold shares worth nearly `78,000
shutdown and the number of Co- by global mkt foreigners sold COST 7850 crore in India, sending the Sensex Govardhana.Rangan
vid-19 cases showing little signs of strength, fresh shares worth OF $100 and Nifty tumbling by as much as @timesgroup.com
subsiding, market participants are foreign fund nearly `78,000 BILLION FOR 45% from their all-time highs on Ja-
7400
anticipating the recent bounce in purchases crore in India INDIA Apr 01, ’20 Apr 09, ’20 nuary 20. Despite the recovery, Indi- Mumbai: The Reserve Bank of moratorium was announced for
stocks, dubbed as a run-up in a bear an benchmarks are still about 27% India’s (RBI) monitoring mecha- all borrowers, NBFCs gave relief
market, to run out of steam. away from their record levels. nism suggests that more than fo- to most of their clients that are
Fund managers and analysts said down, the markets will find it diffi- the lockdown to April 30. in global markets and fresh foreign Analysts said a relief package to ur-fifths of the non-bank lenders either individuals or Small and
while an extended lockdown was in cult to sustain these levels unless a “Unlike in the past, the current fund purchases. Foreign portfolio in- aid sectors and small businesses by assets are sufficiently liquid Medium Enterprises (SMEs).
the offing, the matter that is con- medical solution emerges quickly black swan event happened when the vestors bought `4,800 crore worth of that have been most affected will be to withstand the current squee- But banks have not been uni-
cerning the market is the absence to restart economic activities.” economy was already down. So we fe- Indian stocks last week. cheered by the market. ze and that concerns over the pa- form in doing so.
of a road map by the government Brokerage Antique Stock Broking ar that the economic recovery may “Markets got excited in recent days “More needs to be done in terms of yment obligations during the Furthermore, concerns that
for economic revival. said India may suffer a direct econo- take some time,” said Antique’s ana- as many central banks and govern- fiscal package for industries ove- moratorium quarter are overb- many of the NBFCs are staring
“Extension of the lockdown will mic impact of about $100 billion lysts Dhirendra Tiwari and Pankaj ments announced monetary and fi- rall,” Andrew Holland, CEO at Av- lown, said people familiar with at a default if they are not gran-
have its economic costs which we over the next two quarters on acco- Chhaochharia in a client note. scal stimulus measures, and a num- endus Capital Alternate Strategi- the matter. ted moratorium, with an estima-
will have to bear,” said Nilesh Shah, unt of the three-week lockdown Stock indices gained 13% in a trun- ber of European countries showed a es. “While there has been an initial About 100 top NBFCs, which ted `1.75 lakh crore coming up for
managing director at Kotak Ma- which was to end on April 14. Over cated trading week ending Thursday decline in new cases,” said Sanjeev package, but the longer the delay is account for almost 80% of the repayment by June, may well be
hindra Asset Management Compa- the weekend, the government, with and are up 20% in the past 12 sessions. Prasad, co-head at Kotak Institutio- for a larger package, the bigger the total assets of the shadow ban- unfounded as the data are way
ny. “With this extension of lock- the support of the states, extended The rebound was aided by strength nal Equities. “The situation in India damage would be for the economy.” king system, are comfortably off the mark.
positioned to meet their pay- “The numbers
ment obligations, and qualify floating around
SECONDARY MARKET MOVE
Chinese Central Rally may Take Nifty to 9,550-9,800 Levels to get funding from banks if
they face stress, said those pe-
ople who did not want to be
identified.
The NBFC
industry
has been
demanding
are far
high,” said the
person. “It co-
uld at best be
too

The short-term trend reversal confirmation hints at a Nifty rally towards 9,550-9,800 KAPIL SHAH
Bank Ups Stake TECH levels in the near term, according to technical analysts. They recommend a buy on TECHNICAL ANALYST, EMKAY GLOBAL FIN SER
“Some NBFCs are facing issu-
es and no one is saying that the
that RBI
specifically
about `65,000-
70,000 crore, and
VIEW stocks such as Cipla, Lupin, Cadila, M&M, Maruti, Britannia and Dr Reddy’s at every dip. sector doesn’t face problems,” direct banks that is quite ma-
in HDFC to 1.01% MANAV CHOPRA SAMEET CHAVAN
Where Are We? Momentum oscillator RSI has
recovered from the extreme oversold zone to
the neutral zone. Advance decline ratio is
said one of the people cited abo-
ve. “But many of them are okay.
to extend the
moratorium
nageable.”
The NBFC in-
TECHNICAL ANALYST, INDIABULLS SECURITIES CHIEF TECHNICAL ANALYST, ANGEL BROKING Some of them said that were dustry has be-
Our Bureau improving but still more stocks are
anyway troubled even before en demanding a liquidity win-
Where Are We? There is a higher bottom formation Where Are We? As far as the coronavirus hitting 52-week lows. the Covid-19 problem surfaced dow and a special package to de-
Mumbai: China’s central bank on daily charts and strong support clusters at pandemic is concerned, in reality, we are not out What Is in Store? Recent are the ones that may be facing al with the credit squeeze that
has increased its stake to 1.01% in 8,800-8,600 on the lower side. For the Bank Nifty, of the woods yet. But the market mostly moves upside move can be classified difficulties.” first began after IL&FS defaul-
Housing Development Finance one must maintain a buy-on-dips approach towards on hope or anticipation and this is clearly one of as a relief rally. The Index RBI did not respond to queries ted in September 2018. But the
Corporation (HDFC), the country’s the 19,400-19,000 on the downside which is likely those instances. is in a short-term upside on the subject. central bank and the govern-
leading mortgage company. Share- to act as a cushion in case of a decline. What Is in Store? Looking at the way charts have momentum as it had closed The NBFC industry has been ment have been averse to direct-
holding disclosures for the March What Is in Store? The Nifty has bounced from shaped up, we will not be surprised to see the rally just above its previous resistance demanding that RBI specifically ly fund them.
quarter show that the People’s its weekly oversold levels and short-term getting extended towards 9,500-9,700 over the of 9,100-level. The index can have a further direct banks to extend the mora- Instead, banks have been gran-
Bank of China (PBOC) held 17.5 trend reversal confirmation hints at a next few days. upside move up to 9,300 to 9,400 levels. On torium it permitted on March 27 ted funds to on-lend to NBFCs
million shares of HDFC, which pio- rally toward the 9,550-9,800 levels What Could Investors Do? One must not the higher side, the mentioned level can act as to them after the regulator left and coaxed to buy assets from
neered property lending in India. in the near term. The Bank Index has forget that the recent crisis is related to doing so to the discretion of indi- the shadow banks to ease their li-
strong resistance for the relief rally, which is
It is not known whether the Chine- shown relative underperformance and ‘health’ and hence, it would be important to vidual banks. State Bank of In- quidity positions.
underway now.
se central bank bought all the sha- is likely to witness a catch-up rally once see further developments. If no aberration dia has kept NBFCs out of the The central bank has also facili-
res between January and March. What Could Investors Do? FMCG and Pharma
the index decisively closes above the seen then the above mentioned levels are have shown outperformance in recent moratorium eligibility, causing tated `1 lakh crore of Targeted
Companies need to disclose share- very much on the cards. On the flip side, 8,900 many lenders to do the same. Long-Term Repo Operations
20,000 levels for higher targets towards turbulent times. With this move, both are
holding changes to the exchanges followed by 8,650 would be seen as key supports. The NBFC business model is (TLTRO). This mandates that
21,400-22,000 in the short term. approaching resistance points. So, in coming
at the end of every quarter only if Traders are advised to keep following stock-centric that they borrow from banks and half the funds raised from it sho-
an investor’s stake crosses 1%. What Could Investors Do? Tata Motors and times, their momentum may fade away.
Balkrishna Industries can see an upside of 15-20% approach and should keep booking timely profits on mutual funds by selling bonds uld be used to buy bonds issued
HDFC shares fell nearly 40% this Looking at the current texture of the market, it
in the short term. Pharma and FMCG sectors are a regular basis. For traders, the low hanging fruit is which they on-lend. Once the in the primary market.
year from a high of `2,493 to a low seems that rather than taking risk on specific
likely to continue outperformance and Divi’s Lab, certainly gone, but still any dip in Lupin, Cipla and
of `1,499 last week. The stock ralli- Cadila can be a buying opportunity. Traders can look sector or stock, an investor can prefer ETFs like
ed 14% last week to close at `1,702 Dr Reddy’s, Britannia and United Spirits may see an NIFTY BEES and JUNIOR BEES which will carry
to buy Maruti and M&M. From the midcap space, we
on Thursday.
“PBOC is an FII,
upside of 10-15% from the current levels.
like CONCOR and SUN TV at the current juncture. less risk compared to stocks. Some private & foreign banks are offering
over 1,500 such fo- MORATORIUM ON REPAYMENTS till May 31,
Shareholding
disclosures
reign investors ha-
ve invested in Quality stocks such as SUN, HPCL that’ve fallen over 70% from record highs seem good bets but most PSU lenders appear to be wary
HDFC and this is a

‘Phoenixes’ Mauled by Bears May Rise With SBI Saying

for the March
quarter show secondary market
that PBOC transaction,” said
held 17.5 m Keki Mistry, CEO
shares of of HDFC. “They
HDFC owned 0.8% in
March 2019, they
have just increased 0.2% now, may
be because the prices are down.”
Sharply in A Year’s Time, Hints Study ‘No’, Banks Divided
ET had reported on April 3 that
China-backed funds are seeking to
buy Indian financial assets after
the Covid-19 outbreak caused a
Rajesh.Mascarenhas
@timesgroup.com Time to Go Shopping?
% Fall from
Buy Target
ting 85% from record high till July
1993, gave a return of 149% in sub-
sequent one year. Infosys, after de-
clining 84% till April 2003, surged
on Relief to NBFCs
major slump in the valuation of lo- Mumbai: It pays to stick to quali- Stocks all-time 114% in one year. Larsen & Toubro,
Price (`) Price (`) Saikat Das, Joel Rebello
cal companies. ty companies that tumble sharply high which dropped 77% till March
in a bear market. A study done by 2009, gave a return of 181% in the & Atmadip Ray
At least two big ticket funds — In- Sun Pharma 74 425-475 563
dustrial and Commercial Bank of ICICI Securities on the previous M&M 75 310-355 410 subsequent year.
China (ICBC) and China Invest- three major bear markets of 1992, Analysts said investors could Mumbai | Kolkata: The ban-
HPCL 70 182-208 240 king industry is split on offering
ment Corporation (CIC) — have as- 2000 and 2008, when the bench- construct a long-term portfolio of
ked bankers to scout for good in- mark indices fell over 40-50% from Tata Motors 90 65-75 98 quality stocks in a staggered man- moratorium on payments to
vestment opportunities in the fi- their respective highs, shows qua- Cummins India 72 300-350 425 ner over the next one year. non-banking financial compani-
nancial services sector, people lity stocks that fell over 70% from “Though the near-term outlook es (NBFCs) with one group ex-
Federal Bank 72 37-42 55
with direct knowledge of the mat- life-time highs have generated for stock market may be hazy, the tending the regulator-blessed fa-
Tata Comm 74 240-285 345 cility, while the other dragging
ter said. These funds are looking to strong returns. risk-reward turns extremely favo-
collectively deploy around $600-650 Sun Pharma, Mahindra & Ma- urable for investors as market has its feet on whether to do so or not,
million in Indian financial assets. hindra, Hindustan Petroleum 70% from their life-time highs such ad technical, ICICI Securities. already priced in extreme pessi- said industry participants.
HDFC owns 19.43% stake in HDFC (HPCL), Tata Motors, Cummins as Sun Pharma, Mahindra & Ma- “Even from a technical analysis set- mistic scenarios,” said Pankaj Some private and foreign
ANIRBAN BORA

Bank and 52.7% in HDFC Asset Ma- India, Federal Bank and Tata hindra, Hindustan Petroleum, Tata up, chart patterns of such compani- Pandey, head of research, ICICI Di- banks have come forward to give
nagement Company and 51.45% in Communications are among the Motors, Cummins India, Federal es indicate a value area emerging, rect. “Also, as the anxiety around forbearance on repayments till
HDFC Life Insurance Company. stocks that have tumbled over 70% Bank and Tata Communications — suggesting buying such stocks to the event settles down and a new May 31, but state-run banks ha-
HDFC Bank, in turn, owns a 96% from their record highs. [these] are available at huge barga- reap handsome gains over a one-ye- bull phase eventually commences, ven’t moved so far, and even tho-
stake in HDB Financial services “We believe there are several such ins relative to their business funda- ar period.” these companies return abnor- se, which did so, are rowing back
and 98% in HDFC Securities. phoenixes that have corrected over mentals,” said Dharmesh Shah, he- For instance, ACC, after correc- mally high alpha for investors.” on the granted moratorium, said has specifically barred NBFCs
people who did not want to be from benefits.
identified for fear of reprisal. Rating company Crisil said
Banks’ hesitation appears to be many companies are staring at
FALL IN ASSETS SHARPER THAN RATE OF DECLINE IN TOTAL OVERSEAS OWNERSHIP IN INDIAN LISTED STOCKS & DEBT following the State Bank of Indi- defaults in the absence of a mo-
a’s decision not to grant or keep ratorium to NBFCs. It estima-

Tax Havens Lead Flight of Money from D-St the NBFC segment out of the mo-
ratorium, said the bankers.
Some private and foreign len-
ders, including Kotak, IndusInd,
tes about `1.75 lakh crore of
debt maturing by June.
“We and many other banks
think that NBFCs should be gi-
Tax havens appear to be far less tolerant of fortune the total FPI equity. Of the pack, Mauritius has been un- FPI equity AUM fell 26.6% in March, when FPIs pulled
ICICI, Standard Chartered, are ven a moratorium since a majo-
reversals, going by the way funds from these hot- sparing. This island country, which accounts for a third out a record `61,972 crore in a single month. said to have granted moratori- rity of their funding is linked to
spots are fleeing Mumbai. ETIG data show that assets of the total tax haven equity assets under management, This has raised the proportion of equity AUM of funds um to select shadow banks. Tho- banks and it is not fair on them
under management (AUM) by entities from Mauritius, saw 42% YoY decline in assets, followed by 30% each from the US. The share of US funds in Indian equities rose se non-government lenders when their customers are not pa-
Luxembourg, Singapore, Ireland, and the Netherlands in Luxembourg and Singapore. Brutal selling from tax to 36.93% in March. Japan has been an exception, though, mostly extended moratorium ying back,” said a CEO of state-
fell by a third in March, outpacing the rate of decline in haven countries resulted in the cumulative FPI equity despite not being a tax haven. AUM of investment from for principal repayment. Those run bank who did not want to be
lenders didn’t immediately re- identified. “However, since SBI
total overseas ownership in Indian listed stock and debt. AUM slipping to `21.17 lakh crore in March, the lowest Japan in Indian equities fell 33.5% to `84,163 crore. ply to ET’s mailed queries. has not agreed, nobody has gone
Together, these tax havens contribute about a quarter of in the last 40 months. On a month-on-month basis, total —Ashutosh R Shyam/ET Intelligence group “We have received moratori- ahead. SBI, with 25% of the mar-
um on principal repayments ket, is a large influence on the sy-
EQUITY AUM OF FUNDS FPI EQUITY AUM: CHANGE IN FPIs EQUITY AUM CONTRIBUTION from select private sector and stem and we need clarity from
DOMICILED IN TAX HAVENS MARCH ON YOY BASIS (FIG IN %) foreign banks,” said the chief of them. RBI norms are very clear,
1200000 an NBFC, who did not want to and hence, they will not issue
(Fig in `crore) -41.50 MAURITIUS 15.53 36.93 USA be identified. “We are now pay- any clarification. It all depends
NETHERLANDS
-33.55 JAPAN MAURITIUS ing only the interest on credit on what call SBI takes.”
1.99
ANIRBAN

900000 IRELAND we availed from them.” Driven by the confusion,

-29.92 LUXEMBOURG LUXEMBOURG
2.42 The RBI on May 27 declared that NBFCs as an industry, has sought
SINGAPORE -29.75 SINGAPORE SINGAPORE banks can grant moratorium on regulatory intervention so that
600000 -26.18 Other 2.97 payments falling between March banks provide them the relief. So
UNITED KINGDOM
LUXEMBOURG
-24.50 USA
3.60 1and May 31. While the regulator are the banks. “We have written
IRELAND
4.16 did not specifically mention any to RBI seeking clarity on this par-
300000 -22.25 NETHERLANDS CANADA segment, it left to the banks’ dis- ticular set of borrowers. Other-
MAURITIUS -20.87 NORWAY 5.57 JAPAN cretion on which borrower to wise, customers have to send an
Equity -20.49 IRELAND 6.59 NORWAY
grant moratorium. email, letter or SMS asking to
0
AUM fall While it is clear that any borro- stop their debit mandates for the-
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20

-20.19 UNITED KINGDOM NETHERLANDS wer with difficulties could avail se months,” said an executive di-
% YoY
-16.28 CANADA 8.49 11.74 Other of the moratorium facility, SBI rector of a public sector bank.
Source: NSDL, compiled by ETIG
 8  Smart Investing THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM

RELIEF RALLY leads to many scrips nearing 52-week highs and analysts’ targets. While mood
What Beaten-down Pharma Stocks
to Buy, Sell
is upbeat, the gains could sustain for firms with strong fundamentals and fair valuations
Day Trading Guide Motilal Oswal Fin Services

On a weekly basis, Nifty rallied by 12.72%

and posted its biggest weekly close after
May 2009. It formed a Bullish Marubozu
kind of pattern on weekly scale, indicating
and Hold dominance of bulls as it turned well from its

Turn Healthy Bets for Investors

deep oversold territory. It started to form
Manappuram Finance higher high - higher low on daily scale from
220 last three trading sessions and managed to
Price on BSE (`) 111.80
close above 20-DEMA. 38.20% retracement of the entire fall from
180 12,430 to 7,511, which is placed around 9,400 zones, could act as
sectors that are still providing visi-
126.55
bility and hope of growth. an immediate hurdle. Now it requires a hold above 9,000-9,100
140
ANALYSIS Rising Tide The sector has managed to function
during the lockdown and meet local
zones to head towards 9,400-9,500 zones while immediate support
is inching higher to 8,888 then 8,650-8,555 zones.
100 Performance of Select Pharma Stocks and global demand. Latest data from
Kiran.Somvanshi Past-week 52-week industry body PharmaTrac shows CHANDAN TAPARIA,
60
APR 12, 2019 APR 9, 2020
@timesgroup.com Pharma Stocks Returns
CMP
(`)
High P/E
M-cap
(` cr)
that apart from an overall seven we- Tech Picks Derivatives & Technical Analyst
(%) (`) eks’ inventory at the distributor level,
 Geojit Securities has rec- ET Intelligence Group: India’s the inventory at pharma company de- MCDOWELL
Sun Pharma 21.10 455.2 479.6 27.3 109,216
ommended buy rating on emergence as the biggest supplier of
hydroxychloroquine to the US drug Divi’s Labs 21.74 2,313.9 2,418.4 47.8 61,422
pots is of 4-6 weeks, and an average 7-8
days’ inventory at the retail level, lea-
BUY
Manappuram Finance with Negated lower top-lower bottom on weekly
market for treating Covid-19 has ding to a cumulative medicine stock scale with a triangle breakout on daily scale TARGET
a target price of `133. Dr Reddy’s Labs 15.05 3,618.2 3,810.0 35.4 60,126
Owing to Covid-19 pan- triggered investor interest in Indi-
an pharma stocks.
Cipla 29.04 579.5 595.0 28.0 46,722
of 13 weeks, or almost three months.
With China resuming production of LAST CLOSE X ` 550 STOP LOSS X ` 525
` 600
demic, the brokerage The once battered sector saw a relief Torrent Pharma 23.02 2,555.3 2,679.4 46.2 43,240 bulk drugs, the supply-chain woes of
expects Manappuram’s rally last week, with shares gaining Indian pharma companies are likely
Biocon 14.67 333.6 345.0 47.7 40,026 HERO MOTOCORP
interest income to only fall
by 0.6% in FY22 compared
between 15% and 30% with some rea-
ching their 52-week highs or inching
Cadila Healthcare 27.50 350.7 378.0 28.8 35,901
to ease out soon. While the number of
analysts turning bullish on pharma
BUY
Double bottom and negated lower high - lower
to previous estimate. Going to that level. Cipla and Cadila Health- Lupin 20.31 787.8 882.2 -96.5 35,685 stocks has increased, shares are tra- TARGET
lows in entire Nifty Auto sector
forward, the brokerage care were the top gainers while Stri- Aurobindo Pharma 20.32 460.1 838.0 10.5 26,954 ding near their target prices. `2,150
expects NIMs to remain des Pharma, Ajanta Pharma and This shows that after the initial ex- LAST CLOSE X `1,990 STOP LOSS X `1,910
Ipca Labs 15.67 1,601.9 1,821.0 32.7 20,239
stable at 15.9% in FY22 as it Bliss GVS Pharma gained the least. uberance — in which all pharma
The swing in investor sentiment Laurus Labs 20.42 412.0 460.0 23.4 4,405 stocks rallied — the rally could susta-
expects fast recovery in HDFC
business growth. The stock
ahead of any change in fundamen-
tals or performance numbers may
Abbott India 12.98 17,880.5 18,500 63.8 37,996 in for companies with good funda-
mentals and fair valuations. Those
BUY
ended up 3.9% at `111.80 on Compiled by ETIG Database Formed double bottom with support of 1,475 -
be surprising, but is justifiable — with business uncertainties, regula- 1,500 zones, bullish crossover in indicators TARGET
Thursday. pharma stocks were oversold and tory clampdowns, governance issues
 Prabhudas Lilladher has were due for a re-rating. sues and pricing pressure in key In the backdrop of the extended and litigation risk may fall out of fa- LAST CLOSE X `1,703 STOP LOSS X `1,620
`1,870
maintained reduce rating They had peaked in 2015, with their markets. The demand for some lockdown, which has caused consu- vour, despite the positive sentiment.
on Avenue Supermarts fortunes taking a gradual beating drugs because of the Covid-19 crisis mer demand to plunge and is hur- Stocks of Dr Reddy’s, Cipla, Abbott
L&T
and revised target price to
on the back of a spate of regulatory
actions, followed by governance is-
gave the Street a reason to turn bul-
lish on the sector.
ting growth projections in several
sectors, pharma is among the few
India, Laurus Labs and Ipca look pro-
mising on a longer-term basis.
SELL
`1,875 from `1,639. The Overall structure is in pressure and bounces are
TARGET
brokerage has cut FY21and being sold
FY22 EPS estimates of ` 750
DMart by 13.1% and 10.7% BUY-TO-SELL ratio touches a high of 2.16 in SUPPLY CHAIN DISRUPTIONS MAY LEAD TO DEFAULTS LAST CLOSE X ` 813 STOP LOSS X ` 845

TReDS Operators Seek

following Covid-19 impact
led by 1) closure of 50%
stores during lockdown 2)
sale of only food and gro-
cery and balance with very
low footfalls 3) likely
impact of social distance
even after lockdown gets
lifted 4) 90% of store pres-
ence in most impacted
clusters and 5) delay in new
store openings. The stock
ended up 4.7% at `2,408.30
on Thursday.
 Antique Stock Broking has
a buy rating on ICICI Bank
with a target price to `560.
ICICI Bank corrected 42%
from its peak and now trades
at around 1.1times one year
forward P/BV (adjusted for
value of subsidiaries), said
Antique. While headwinds
for the sector are on the rise,
steep correction presents a
medium term opportunity to
invest in a bank with strong
liability franchise (CASA
ratio of 47%), low risk retail
asset portfolio (63% of
overall loans, of which 50% is
in home loan segment) and
healthy core profitability
(2.6% of average assets)
which is granular in nature,
said Antique. The stock
ended up 7.4% at `342.65 on
Thursday.
 Kotak Institutional Equi-
ties has maintained add
rating on TCNS Clothing and
revised fair value to `380.
TCNS’ efforts to ramp up
revenues across various
channels will see challenges
in FY2021given Covid-
related shutdowns and
resultant loss of revenues,
said Kotak. `1.7 billion of
cash in hand and various
efforts to cut costs provide
some comfort, and may
result in YoY flat revenues
and earnings in FY2021, said
Kotak. TCNS will have to
accelerate the launch of its
jewellery and footwear
range to improve store same
store sales growth, said
Kotak. The stock ended up
2.15% at `349 on Thursday.
 HSBC has downgraded
Voltas to hold from buy and
cut target price to `545
from `735. Slowing eco-
nomic growth has had a
significant impact on the
growth outlook for dura-
bles, even for low-pene-
trated categories such as
room ACs, said HSBC. The
brokerage believes Voltas’s
room AC segment volume
growth and the profit-
ability of its projects busi-
ness will likely be volatile
and could disappoint even
the lowered numbers over
the next two years. The
stock ended up 5.6% at
`509.35 on Thursday.
March, reversing the 0.9 seen in February
Insiders Make the Most Clarity on Moratorium
of Deep Correction, for Invoice Discounting
Pile Up Own Stocks Suggest rollover of firms’
More Wealth Inside
March Moves Value (` cr)
TOP 5 INSIDER PURCHASES
Mphasis 520.95
Tata Steel 462.56
HCL Tech 392.57
Indian Hotels 214.46
GMR Infra 188.48
TOP 5 INSIDER SALES
Future Retail 539.56
Yes Bank 173.02
Eris Lifesciences 68.26
Kotak Mahindra 67.97
IDFC First Bank 62.67
Rajesh.Mascarenhas@timesgroup.com
Mumbai: For the first time after 19
months, company insiders — in-
cluding promoters, directors and
staff — bought into their respecti-
ve companies, a reversal of the usu-
al selling trend. The Covid-19 pan-
demic sent stocks into deep correc-
tion, prompting the insiders to buy
as much as they could.
In March, insiders bought shares
worth `3,701 crore and sold to the
tune of `1,713 crore, a buy-to-sell ra-
tio of 2.16, showed a data compiled
from nseinfobase.com.
In contrast, they had sold shares
worth `11,893 crore against purcha-
ses of just `1,120 crore in the previo-
us month, a buy-to-sell ratio of 0.09.
According to nseinfobase.com, the
last time when insider buying over-
took selling was in July 2018 when
they bought shares worth `4,149 cro-
re as against selling of `1,263 crore.
Lists of Key Sectors Drawn
From Page 1
Government departments and mi-
nistries such as Department of Pro-
motion of Industry and Internal
Trade (DPIIT) have held consulta-
tions with industry representatives
and on that basis, lists of sectors
that could be opened up are being
prepared. This will be subject to
approval from the home ministry
and the Prime Minister’s Office
(PMO).
Under consideration are allowing
resumption of activity for compani-
es/MSMEs (Micro, Small & Medi-
um Enterprises) with export com-
mitments, but with minimal man-
power and necessary movement of
materials.
For big companies in sectors such
as textiles, automobiles and electro-
nic manufacturing, it has been pro-
posed that 20-25% capacity in single
shift may be considered, subject to
Monthly Trends
Month
Total
Value of
Total Value
of Sales Ratio
Buys (` cr) (` cr)
Mar-20 3,701 1,713
Feb-20 1,120 11,893
Jan-20 19 1,074
Dec-19 378 5,575
Nov-19 329 7,987
Oct-19 17 1,999
Sep-19 1,252 9,072
Aug-19 925 3,726
Jul-19 267 1,761
Jun-19 817 9,731
SOURCE : Nseinfobase.com
The buy-to-sell ratio was 0.16 in
FY20, 0.26 in FY19 and 0.30 in FY18.
Persistent selling pressure across
the board in the aftermath of the
national lockdown has offered ex-
cellent opportunities for the insi-
ders to increase their stake in the
company, said experts.
“Insider buying indicates manage-
ment’s expectations about positive
prospects for the company and indi-
cates confidence in their business,”
said Pranav Haldea, managing di-
rector, Prime Database Group. “Ho-
wever, investors should still under-
take a comprehensive evaluation of
the company before buying while
insider selling may not necessarily
imply a negative outlook.”
“Creeping acquisition by promo-
ters is a positive sign which reflects
their conviction in the long term
business prospects of the compa-
ny,” said Mehul Savla, partner,
Ripplewave Equity Advisors.
proper sanitation and social distan-
cing norms. “All units in SEZs and
EOUs may be permitted to start
with minimum manpower and pro-
per sanitisation and distancing
norms…” an official said.
The heads of all the 11 empowered
committees had a meeting with se-
nior officials of the PMO on Friday
to take a stock of the situation.
The medical fraternity at the mee-
ting continued to push for an exten-
sion of the complete lockdown, say-
ing that Covid-19 positive cases may
peak in April end to mid-May in the
country.
Sources said the DPIIT has also
told the home ministry that more
manufacturing activities, which
are essential for the economy and
providing liquidity to the people,
should be allowed once the final de-
cision on the extension and nature
of the lockdown is taken.
More Segments may be Included
dues between Mar 1and
May 31; Loans not cash
credit or OD, say lenders
Ashwin.Manikandan
2.16
@timesgroup.com
0.09
0.02
Mumbai: Distressed companies
0.07 using the invoice factoring platform
0.04 TReDS are staring at potential de-
0.01 faults, as the working capital availed
0.14 by their MSME suppliers against fu-
ture receivables are not being consi-
0.25
dered for the central bank’s morato-
0.15
rium benefits.
0.08 Lenders say these loans don’t quali-
fy as these are neither in the nature
of cash credit, nor overdraft, people
aware of the matter said.
TReDS operators are, in turn, sug-
gesting the deferment be allowed on
the grounds that these finances are
categorised as ‘bullet repayments’
availed as working capital advances
by MSMEs and corporates.
Trade Receivables and Discoun-
ting System (TReDS) is an electronic
bill discounting platform regulated
by RBI and endorsed by the central
government to provide MSME
‘suppliers’ of corporate ‘buyers’ in-
stant payments for future receivab-
les to prevent delay in payouts for
cash-strapped small businesses.
Banks and NBFCs finance invoices
at competitively priced interest on a
bidding basis on the platform, which
then gets structured as short-term lo-
ans to the corporates with a maxi-
mum maturity period of 180 days.
The three operators of the TReDS
platform — Sidbi and NSE-owned
RXIL, Mynd Solutions-owned
Other industrial segments that
may start operating over time inclu-
de production of heavy electrical
items like transformers and circuit
vehicles, telecom equipment and
components, compressors and con-
densor units, defence ancillary
units, pulp and paper units, all types
of food and beverages, fertilizer
plants, cement plants, paints and
M1xchange and Axis Bank-owned In-
voicemart — have now sought clari-
ty on the matter with the finance mi-
nistry, the RBI and the MSME mini-
stry. They are seeking extension for
corporates whose repayment tenors
are due between March 1, 2020 and
May 31, 2020 citing “massive disrup-
tion in the supply chain ecosystem”.
“We have received multiple requ-
ests from the existing corporate buy-
ers on our platforms to extend the te-
nor of the invoices which are due,”
said a letter sent to the RBI on April 1
and then again on April 8.
RBI governor Shaktikanta Das on
March 27 announced a slew of mea-
sures, including a moratorium on lo-
an repayments, to provide relief to In-
dia’s distressed bor-
rowers. Separately,
these operators also
wrote to the Depart-
ment of Financial
Services and MSME
Operators ministry seeking spe-
suggest cial relief to improve
deferment as TReDS’ outreach.
the loans “In any crisis, the
are bullet most vulnerable and
repayments affected are the ones
availed as at the bottom of the
working
pyramid and TReDS
capital deals with such indi-
advances
viduals and entities.
The most vulnerable are the MSME
owners and their employees who are
likely to face extreme financial cri-
sis,” the letter written to top officials
of DFS and MSME ministry said.
ET has seen copies of these letters.
The TReDS portal had traded recei-
vables worth `14,000 crore until De-
cember, as per data sourced by ET.
“While some banks have passed on
the moratorium benefits to corpora-
tes on the platforms, several others
have refused, citing absence of expli-
cit directions by RBI,” said a person.
dyes, and automotive units.
Items such as production of pressu-
re cooker gaskets, pharmaceutical
items including surgical gloves, rub-
ber coated aprons, trolley wheels for
hospital sector, and catheters may al-
so be allowed, the officials added.
The government will come out
with standard operating procedu-
res — of social distancing, regular
disinfecting and periodic tempera-
ture checks throughout the day,
which will be backed up by supply of
adequate testing kits in the faciliti-
es that are opened. These sectors
will be opened gradually and pos-
sibly in phases.
Officials acknowledged that there
would be challenges to opening up
the economy in stages. For example,
to resume operations at a steel plant,
it would need coal supplies. “… there
will be some inventory available but
soon there would be a need to trans-
port more,” said an official.
States’ Revenues
Dip 50-75%
From Page 1
The distinction between trans-
port of essential and non-essen-
tial goods that’s causing confu-
sion on the ground will be done
away with. Industries will be
opened “subject to public health
concerns,” said the people cited
above.
This is expected to get the eco-
nomy moving while strict rest-
rictions remain in place in large
urban areas such as Delhi and
Mumbai for the general public.
The current three-week lock-
down is scheduled to end on
April 14 and an announcement
about what shape it will take af-
ter that is expected soon.
“The form of the lockdown
from April 15 will be different.
Activity in some areas will be re-
laxed,” Madhya Pradesh Chief
Minister Shivraj Singh Chau-
han said on Sunday. The “near-
unanimous view” at the Prime
Minister’s meeting with chief
ministers on Saturday was that
lifting the lockdown was not fea-
sible given the rising number of
infections cases and deaths, he
said. More than 360 districts in
the country have people with co-
ronavirus infections, up signifi-
cantly from the previous week.
Amid falling revenues and
funds drying up, states face a to-
ugh balancing act between sa-
ving lives and reviving the eco-
nomy, officials said. Madhya
Pradesh, for example, hasn’t pa-
id inflation-linked dearness al-
lowance to its employees. Others
have deferred pay. Chief mini-
sters told the PM that revenue
has dropped 50-75% over the past
month.
Six opposition-ruled states--
Delhi, Maharashtra, Telangana,
West Bengal, Punjab and Odisha-
–have already announced lock-
down extension until the end of
April. All the BJP-ruled states
are also in agreement with exten-
ding the lockdown but have left it
to the Centre to decide on the
matter, senior central govern-
ment officials told ET. Uttar Pra-
desh chief minister Yogi Aditya-
nath has formed a committee to
look at ways in which develop-
ment work can resume while so-
cial distancing norms are follo-
wed. Andhra Pradesh and Chhat-
tisgarh have told the Prime Mini-
ster that states should be allowed
to decide the parameters of any
relaxation.
A key theme that has emerged
is restarting industry while ob-
serving a lockdown for the gene-
ral public, officials said. This in-
volves identifying industries
that can house their workers un-
til the end of April, through
what the PM termed in the Sa-
turday meeting as a “lock-in”
strategy.
Haryana chief minister Mano-
har Lal said the state has divided
regions into red, orange and gre-
en zones depending upon the
number of cases. This will deter-
mine the extent of the relaxa-
tion. The economic hub of Gur-
gaon is among those in the red
zone, which means that maxi-
mum containment will remain
in place in the district.
Farming and harvesting will
continue in all zones with produ-
ce being procured from the do-
orstep of farmers and free move-
ment for the transport of crops.
The marine and aquaculture
sector will be exempted. The
Centre told all states on Sunday
to allow movement of goods of
all kinds and said godowns and
cold storages can store any item.
Major metros and state capitals
such as Delhi, Mumbai, Pune,
Indore, Gurgaon, Bhopal, Hyde-
rabad, Ahmedabad, Jaipur, and
Bengaluru, which have seen a
high number of cases, are unlik-
ely to see any major relaxations.
“Mumbai and Delhi are now re-
porting the highest number of
infected cases… Both metros are
under heavy containment. Pune
is also a major worry,” a senior
central government official said
when asked if any relaxation
will be allowed in the three citi-
es. Ahmedabad and the Madhya
Pradesh financial hub of Indore
are also seen as hot spots.
The resurgence of coronavirus
cases in China, Japan and South
Korea is a cause of concern for
India, said Lav Agarwal, joint
secretary in the health ministry,
at the daily briefing on Sunday.
“We have to ensure our social
distancing and containment me-
asures are there as any relaxa-
tion in the same can reduce our
effect and output,” Agarwal said.
This government is conside-
ring insurance cover for agri-
cultural workers, truck drivers
transporting cargo and those
employed in essential industri-
es, said the people cited above.

Banks Lean Toward Triple-A-rated Cos Banks Preparing to Extend Moratoriums

From Page 1
The RBI exempted banks from
mark-to-market provisions, ma-
king the scheme more attractive.
RIL is finalising details of the
plan with Axis Bank, HDFC Bank,
ICICI Bank and State Bank of In-
dia that could potentially feature
the lowest cost of borrowing in ye-
ars, said people familiar with the
discussions. The proposed bonds
will likely offer 7-7.2% percent
with a three-year maturity, they
said, adding that SBI Caps is also
involved in negotiations. To be su-
re, the banks’ total subscription to
the RIL bond sale need not neces-
sarily be entirely from the TLTRO
funds. RIL, ICICI Bank, HDFC
Bank, SBI and SBI Caps did not re-
ply to ET’s mailed queries. Axis
Bank declined to comment.
Mid-sized corporates and non-
banking finance companies
(NBFCs) fear that a substantial
chunk will go to big companies
and state-backed firms. With risk
aversion at its peak, banks conti-
nue to shun small borrowers and
lean toward triple-A-rated compa-
nies.
“Banks have a clear arbitrage he-
re as they could park the money at
least 260 basis points higher rate,”
said Ajay Manglunia, managing
director and head of fixed income
at JM Financial. "While the absen-
ce of mark-to-market obligation
makes it more attractive for
banks, corporates too avail chea-
per money.”
HDFC Ltd recently raised Rs
2,500 crore at 7.20%. Government-
owned Indian Oil Corp. (IOC),
Hindustan Petroleum Corp. Ltd
(HPCL), Bharat Petroleum Corp.
Ltd (BPCL) and NHB raised about
20,000 crore through short-term
commercial papers recently.
The spread or differential betwe-
en the benchmark bond and top-
rated corporate papers narrowed
to 80-90 basis points immediately
after the March 27 emergency rate
cut from 150-200 basis points. A ba-
sis point is 0.01 percentage point.
The domination of big firms and
state-run companies may crowd
out smaller borrowers.
“There is little chance of me get-
ting funds from banks through
this TLTRO,” said the chief execu-
tive of an NBFC. “If a PFC (Power
Finance Corp) and I go for funds to
a bank, it is obvious who the ban-
ker would prefer.”
The Reserve Bank of India con-
ducted a third TLTRO on Thurs-
day, when another Rs 25,000 crore
entered the system. Lenders co-
uld raise money at just 4.40%.
Banks are mandated to invest
half of the sum from TLTRO in
primary investment grade corpo-
rate bond sales.
From Page 1
“It’s going to create a big problem
for banks if they don’t offer more
relaxations. We’re working on it,”
the Ola executive said, on the con-
dition of anonymity.
Even as ride-hailing companies
have begun negotiating on behalf
of the drivers with banks, lenders
have begun preparing to extend
moratoriums till as late as Decem-
ber, while some are even preparing
for the eventuality of seizing as-
sets and redeploying them at lower
rates to avoid writeoffs, industry
executives told ET.
Cab aggregators, meanwhile, have
set up funds to ensure a basic amo-
unt of earning for drivers through
the lockdown period as well as medi-
cal insurance in case drivers or the-
ir families contract the virus. Uber
has put together a `25-crore relief
package for drivers with the aim to
raise another `25 crore, a company
representative said.
Ola, too, is raising a Rs 50-crore
fund to provide drivers with cash
to meet daily expenses, the compa-
ny announced in a blog a few days
ago. Ola did not reply to ET’s queri-
es on this report.
DRIVERS MOSTLY MIGRANTS
India’s cab driver community com-
prises mostly migrants, who typi-
cally return to their hometowns
during the harvest season from
April to June. However, this year
due to the uncertainty around the
Covid-19 pandemic, a huge number
of drivers is scouting for alternati-
ve careers.
“There will be a new set of drivers
who will come in as the previous
contract will be closed and new
ones renegotiated, implying finan-
ciers will have to bear some losses.
The vehicles will be repriced and
offered to the new drivers for long-
er periods and lower EMIs,” said
Ramesh Iyer, MD of Mahindra Fi-
nance.
Experts feel that only the promise
of good earnings will induce dri-
vers to return.
 Economy: Macro, Micro & More  9
THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM

WORLD BANK’S SOUTH ASIA ECONOMIC FOCUS REPORT

India to Grow at 1.5-2.8% in FY21: WB
South Asian nations
likely to see worst
economic fall in 40 yrs
Our Bureau
New Delhi: India along with
the eight South Asian countri-
es is likely to see the worst eco-
nomic slump in 40 years, accor-
ding to the World Bank’s (WB)
latest report on Sunday.
The WB’s South Asia Economic
Focus, released on Sunday, slashed
India’s growth to between 1.5% and
2.8% for the current fiscal, down
from its October 2019 forecast of
6.9% for FY21.
For the South Asian region, the
update estimated growth to slow
Covid Task Force
for Turning Train
Coaches into Wards
Road Construction
Resumes in Bihar,
MP, Maha, Gujarat
“This would come after already dis- uld have a severe impact on the re-
appointing growth rates in previous gion’s pace of poverty alleviation,
Growth Slump years. The green shoots of a rebound it said. For India, it said the pover-
Region’s 2020 India Assessment
that were observable at the end of
2019 have been overtaken by the nega-
ty rate, as measured by the inter-
national poverty line of $1.90 per
GDP growth Nishtha.Saluja@timesgroup.com
down to 1.8-
Fiscal deficit Growth will rebound
to 5% in FY22 as govt
tive impacts of the global crisis,” the
report said.
day, declined to 13.4% in FY15 from
21.6% in FY12. “Since then the de- Back to Work
projected to widen to
2.8% from 6.3% 9% of GDP in FY21 measures take effect Other agencies including Moody’s celeration in GDP-per-capita New Delhi: Local administrations
Urgent/ Relaxation
and Goldman Sachs have cut India’s growth has likely magnified the in Bihar, Maharashtra, Madhya
Projections by other agencies Risk Factors emergency only in
growth forecast. Goldman Sachs risks for the poorest households, Pradesh and Gujarat have begun
Agency FY21 Forecast (%) Deceleration will projected India’s FY21 growth at a as shown by trends in key indica- providing permission to resume ro- work allowed non-hotspot
magnify socio- meagre 1.6%, while the two ratings tors,” it said, citing that real avera- ad construction and repair work for now districts
Goldman Sachs 1.6
economic inequalities agencies Moody’s and S&P slashed ge daily rural wages have fallen by even as the government toys with
Moody’s 2.5 their expectations for India down to 4% between FY19 and FY20. extension of lockdown with some Move to help migrant
Pace of poverty 2.5% and 3.5% respectively. The WB also expects India’s fiscal caveats to allow economic activity labourers: officials
S&P 3.5
reduction likely to be deficit to rise owing to recently to resume.
ADB 4 severly impacted POOR TO BE HIT THE MOST adopted tax cuts and the impact of In around eight to ten districts of Govt should ensure
The report said the impact of Co- Covid-19 and significantly slower these three states, district magistra-
down to 1.8-2.8% in lockdown measures for its lowered vid-19 followed by the growth de- growth of tax proceeds. The fiscal tes have allowed road construction smooth movement of
2020, down from 6.3% estimates. It also mentioned that claration would be most felt by the deficit is projected to widen to 9% to resume, although in a controlled raw material: Industry
in the October 2019 the impact negates any green sho- poorest sections of society. While as revenue performance dips with manner, a government official awa-
edition of this re- port. ots India saw emerging from the the South Asian region had made the growth slowdown and expendi- re of the matter told ET.
The report cited the severe impact structural slowdown the economy significant progress in poverty re- ture commitments rise in line with ET was the first to report on April 8
of the Covid-19 outbreak and the was going through earlier. duction, the current situation wo- the stimulus programme, it said. that the road construction sector
was likely to get a breather, with the
ET GRAPHICS government planning to allow
construction activity to resume at
Lockdown: How Much a Household Needs CII: Calibrated large project sites. road repair work will not be possible
Union minister for road transport once monsoon begins in June, so we
With the lockdown likely to last over a month, daily wage earners and the poor may need more support.
Here’s an estimate of how much such households will need and what it will cost the government.
Approach and highways Nitin Gadkari had have to get this type of work done,”
last week mooted a proposal on gra- the official added.
THE LAST AVAILABLE HOW MUCH IT WILL COST Needed to Exit dual lifting of curbs on construc-
tion activity in non-hotspot areas.
“Local administrations, however,
must ensure movement of goods
CONSUMPTION NOs. THE GOVERNMENT The relaxations have come only like steel and cement, while facili-

Yogima Seth Sharma

Mthly per capita expenditure `1.34 lakh cr a month Shutdown in non-hotspot dis-
tricts, the official
tating arrival of
migrant workers
(MPCE)* in 2011-12
& Nishtha Saluja HERE’S HOW... said. for smooth func-
Rural Urban Construction has tioning of opera-
Population 1.3 billion
New Delhi: A key Covid-19 task force has `1,430 `2,630 Rural Urban The Suggestions been allowed in Mu- tions,” said Vinay-
said the railways should covert running *Household Consumption of Various 858 million 442 million Consider geographical zaffarpur, Chapra, ak Chatterjee, cha-
trains into dedicated isolation and treat- Goods & Services in India, 2011-12, NFFO spread before opening Khagaria and Su- irman of Feed-
ment centres. up industries paul in Bihar, Shiv- back Infra.
The Indian Railways has already set up sta- INFLATED BY Assuming 80% of rural and puri and Gwalior in A government of-
tionary isolation coaches, but the task force CONSUMER PRICE INDEX 40% of urban population Red, amber and green, Madhya Pradesh, ficial ET spoke
said it would not serve the need support basis number of Bhavnagar in Guja- with said that aro-
REVIVAL AF TER LOCKDOWN
desired purpose. The issue `2,244 Population eligible for support COVID cases rat, and Nagpur in und 50-60% labou-
The Railways was raised on Friday at a Rural Urban Maharashtra. rers or construction workers are
Give adequate notice
has already meeting of the group on `4,232 684 million 178 million before lifting lockdown “Contractors at these sites have gi- available at large project sites in
set up medical emergency and ven undertakings that work will be the country. The ministry of home
stationary management plan by its he- Mthly outgo* of govt then is... Labour-intensive, carried out with strict precau- affairs which is implementing the
isolation ad, VK Paul. Rural Urban Rural Urban export-oriented sectors tions,” the official quoted above sa- lockdown invoked the Disaster
coaches, but The minutes of the mee- `95,144 cr `39,178 cr should restart id. “Permission has been accorded Management Act, 2005 to put lock-
ADJUSTING FOR
Illustration: ANIRBAN BORA

the panel said ting quoted Paul as saying Total `1,34,322 crore
only for urgent work. For instance, down measures in place.
it would not that the coaches would not CONSUMPTION BASKET…
(Eligible population x basic monthly need) Our Bureau
serve desired serve much purpose if they Spending Add another

Ordinance to Amend
purpose were to function only as Le- on food is 10% for other
vel-1 stationary Covid-care Why should the transfer be on New Delhi: The government
52% (of needs=62% a household basis?
centres. “In order to exploit the advantage of should take a calibrated appro-
MPCE) in and 52% as No reliable data on unemployment,
care facilities on rails, it was important that ach looking at the geographical
rural areas basic 90% of it in informal sector

IBC Likely This Wk

they should be upgraded at least to the Le- spread of Covid-19 cases in ex-
vel-2, that is dedicated Covid health centres,” and 42% in individual cash iting the nationwide lockdown,
ADJUSTING FOR FAMILY SIZE Difficult to identify who has lost
he said. “The true strength of the isolation urban areas requirement industry body CII said. Sectors
Avg per-household monthly transfer
jobs and needs support
coaches would be if they could be rushed in- related to agriculture, essential
to remote hotspots, or areas where the exis- …BASIC MONTHLY Rural areas Urban areas India has good data on households commodities, exports, among
ting health facilities are being overwhelmed, NEED PER CAPITA others, must be prioritised in ea- Gaurav Noronha &
so as to augment the capacity,” Paul said. Rural Urban
`6,816 `10,125 It is possible to reach out to those
households in need sing restrictions, it said. Deepshikha Sikarwar A Quick Fix
Paul did not respond to ET’s text seeking `1,391 `2,201 IIIIIII IIIIIIIIIII CII has used four key indica-
Proposal likely
comment till press time. (Assuming avg household size 4.9 for rural & Aadhaar and Jan Dhan can be used tors for prioritising sectors that New Delhi: The Union Cabinet will
(`2,244 X 62%) (`4,232 X 52%) to transfer money to be moved
4.6 for urban areas, based on 2011 census) need to be restarted, it said. likely take up this week an ordinan-
These include sectors that are ce to amend the Insolvency and
this week
part of and support the essential Bankruptcy Code, to prevent com- THE PROPOSAL

Tech Support IITs to Help Textiles Get Back on Track
IIT Madras-led group
to work on indigenous
PANELS SET UP Irani floats 5 task forces for entire textiles value chain
machine mfg
IIT Kharagpur in Kirtika.Suneja
charge of textile @timesgroup.com
MSMEs, data analytics
for traditional sectors New Delhi: India has be-
IIT Kanpur responsible gun working on ways to
kickstart the economy once
for reorienting tech
the country emerges from
for weavers, artisans
the shadows of the Covid-19
pandemic. The textiles mi-
nistry has roped in the pre-
stigious Indian Institutes of
Technology (IIT) to address
both immediate and medi-
um-term action plans for
the sector in the post-Covid
situation for the textiles in-
dustry.
Textiles minister Smriti
Zubin Irani has constituted
five Technological Task For-
ces led by various IITs for
the entire textiles value cha-
in. IIT Madras would lead
the group on indigenous ma-
chine manufacturing and
machine tools while the set-
ting up of local labs and pro-
moting local techn is to be
coordinated by IIT Bombay.
goods and services ecosystem,
labour intensive sectors, sectors
that are essential for protecting
panies from being forced into insol-
vency proceedings due to default
caused by the Covid-19 crisis.
Changes to
suspend these
India’s export market share and “A proposal will be moved for Cabi- sections
gain the confidence of global net's consideration this week,” a go-
“The ministry is looking at situations in the textiles markets besides sectors that vernment source told ET. Amendment
game changer ideas. Opi- sector on Saturday. will help the country manage its The ordinance will seek to suspend to Sections 7,
nions are being taken and Another task force will imports to a minimum based on the relevant provisions of IBC Sec- 9 &10
discussions are on for post- work on raw materials and essential requirements for furt- tions 7, 9 and 10, to provide relief to
Section 7, 9, 10
Covid-19 recovery. Intensive waste product utilisation her production and export. borrowers from being dragged into
However, prior to lifting of lock- insolvency. Suspension will be for allow for initiating
work is happening on that technology in IIT Delhi
front,” said an official. while boosting textiles down, there has to be adequate six months at least. Section 7 allows insolvency
resolution process
The taskforces were set MSMEs and large data ana- notice given to all and along with a financial creditor to file for initia-
up after Irani held discus- lytics for traditional sectors that there should be announce- ting the corporate insolvency reso- EXPERT TAKE
sions with principal scien- would be the responsibility ment of an economic package, lution process against a corporate
tific adviser, scientists, of IIT Kharagpur. IIT Kan- CII said. All facilities that reo- debtor. Section 9 provides for appli- Six months Distinguish
technologists and acade- pur, on the other hand, wo- pen must have requisite health, cation of insolvency by an operatio- suspension Covid related
micians on technological uld focus on reorienting sanitation and screening sy- nal creditor, while Section 10 is for may not be defaults &
and manufacturing inter- technology for weavers and stems in place to protect wor- initiation of insolvency procee- enough normal ones
ventions in post-Covid-19 handicraft artisans. kers, the industry body said. dings by a corporate applicant.

Deadline for PPF,

No 3-Month Relief for NBFCs, Ready
to Help on Case-to-Case Basis: PNB
Gaurav Noronh a
& Deepshikha Sikarwar
New Delhi: Banks are ready to help
out non-bank lenders on a case-by-case
basis in the wake of the Covid-19 crisis,
though there is no automatic window
available to them to delay loan repay-
ments, Punjab National Bank mana-
ging director SS Mallikarjuna Rao sa-
id. He said there could be a bad loan is-
sue if the lockdown persisted for long.
PNB has offered a respite on `4 lakh
crore of loans to borrowers under the
three-month moratorium on repay-
ments announced by the Reserve
Bank of India, Rao told ET.
Some NBFCs have overcome asset-liabil-
ity issue to a certain extent, but still face
Girl Child Scheme
Deposits Extended
The bank has also started three new two categories of NBFCs. One is those Our Bureau )
categories of emergency-funding un- that have managed to tide over their as-
der a Covid window: a scheme for ki- set-liability mismatch issues from the New Delhi: The deadline for
san credit-card holders with an imme- earlier liquidity crunch by using the mandatory minimum deposit in
diate loan of up to `50,000; personal lo- long-term funding — targeted longer- small savings schemes, including
ans equal to three months’ average sa- term refinancing operations (TLTRO) Public Provident Fund and Suka-
lary with a cap of `3 lakh to the — that banks had provided over the nya Samriddhi, for FY20 has been
salaried class, which could be repaid past year and a half. The second group extended to June 30.
in three years; and a 10% comprises those that have overco- “The government has taken the
top-up on current me the asset-liability issue to a decision to safeguard interests of
outstanding for big- certain extent, but still face so- small savings depositors in view
ger accounts of me consistency issues. of the lockdown in the
both individuals “That window (TLTRO) will country due to #Co-
and businesses. give some element of comfort vid19 Pandemic,” the
J
HELP FOR NBFC S
to NBFCs which are running
professionally well, having
finance ministry said.
The ministry had issued a notifi- _ ` ® oe0eo
According to tided over the problem of cation to this effect on Saturday.
Rao, there are the earlier asset-liability To keep these accounts active,
mismatch,” Rao said. But subscribers have to make a deposit
the second group may have a every year, otherwise penalty is
little difficulty compounded charged. Usually, subscribers ma-

os ,
by the Covid-19 impact, he said, ke a payment towards the end of fi-
consistency issues... They need to be ad- adding: “So, they need to be scal, as these schemes are part of
dressed on a case-to-case basis, to under- addressed on a case-to-case Section 80C of the Income Tax Act.
stand what is the problem basis, to understand The ministry has also waived off
what is the pro- revival fee or penalty charges on
SS MALLIKARJUNA RAO, MD, PNB blem.” these accounts.

Feel the Pulse! Rice, Oil Prices Begin to Rise

THE HURDLES Retail prices up as scarcity of labour & packaging material, storage restriction trouble trade
material and labour.“Another issue
-0
Sutanuka.Ghosal that may lead to disturbance in suppli- S
& Jayashree Bhosale
Food
Food for
for Thought
Thou es is that after implementation of the
lockdown, edible oil has come under 9ad9
ets
Rice
Rice prices
prices up
up 20% Edible oil prices rise Pulses prices have ,Orld Of
the N
Kolkata | Pune: Price of pulses, rice 20% Ed the purview of the Essential Commo-

and cooking oils have started rising
on rising demand despite availability
of adequate supply, traders said.
Scarcity of packaging material, ho-
wever, is a worry and storage restric-
tions under the Essential Commoditi-
es Act may backfire, they said.
In some cities, biscuits and bread are
in short supply. Bread output, particu-
larly in smaller cities is hit by non-av-
ailability of yeast.
“Prices of rice, which is being used
for community kitchen, are seeing an
upswing as the demand is huge,” said
Angshu Mallick, chief operating offi-
cer of Adani Wilmar. Price of rice has
risen up to 20% because of fears of scar-
Scarcity
Scarcity fears
fears rise
rise
Demand
Demand from
from
community kitchens up
city and the customer’s focus on availa-
bility – so nobody is questioning higher
rates, traders said.
In Kolkata, price of common rice has
increased to about `32 per kg from `27
earlier, said Suraj Agarwal, CEO of
Tirupati Agri. He said most rice mills
in the state had shut down, and trans-
portation was difficult and costly.
Rajesh Shah, senior vice president at
om
in
in several cities shot 20%-30% dities Act,” Mehta said. “As a result, t
the depots of manufacturers, which vrh exPer"'
Solvent extractors Dal mills are the
Sol supply is are located in other states/places Kno w t fr
say running at
away from factory premises, are trea- traig h
adequate 25-30% capacity s
ted as wholesale depots and thus come
under storage control restrictions.”
Federation of Association of Maha-
Prices of pulses have increased 20-
30%, traders said. Anjan Gupta, ow-
I
rashtra and largest dealer of Kohino- ner of Surbhi Traders in Kolkata’s
or Basmati rice, however, denied any biggest wholesale market Posta mar-
increase in rice price and said there ket, said wholesale price of masoor
was adequate supply. dal has risen to `70 per kg from `54 per
Edible oil prices have also risen in se-
veral cities. BV Mehta, head of indust-
kg before the lockdown.
Prem Kogta, a Jalgaon-based pulses
Log on to www.gadgetsnow.com
ry body Solvent Extractors Associa- processor, said most dal mills are run-
tion of India, said supply is adequate ning at barely 25-30% capacity due to a
but there was a shortage of packaging shortage of labour.
 10 THE ECONOMIC TIMES The Edit Page THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM

Lockdown: Selective,
No More Total
Three-week lockdown has enabled zoning
To Lockdown or not Lockdown — that is the question.
The answer involves existential angst a whole lot more
acute and less abstract than what troubled the Prince of
Denmark. The three-week quarantine has, by all estima-
tes, reduced the scope of the Covid-19 pandemic’s spread
in India, bought time for greater medical preparedness
and, more significantly, allowed disease clusters to mani-
fest themselves. While the relatively low scale of testing
precludes definitive identification of Covid-19-free are-
as, it is safe to presume that if no group of people, grou-
ped by age or vulnerable underlying health conditions,
developed symptoms in the three weeks of lockdown in
certain areas, those areas are free of the disease.
Simultaneously, areas where people developed symp-
toms have emerged. This enables policy to classify areas as
It’s not just stimulus that counts; fiscal and monetary support must also help soften Covid-19 blows
Show Them the Money money ostensibly meant for them is
moving around from banks to corpo-
rates (who may not need the money),
and from bank to bank. A handful of
big companies and public sector utili- Mechanistic
ties (PSUs) have cornered more than
half the money that the Reserve Bank
of India (RBI) released since end-
Worldview
March 27 as cheap long-term loan to
Sugata Ghosh banks for ‘targeted’ subscription of
S H VENKATRAMANI
corporate bonds. It’s aimed to help bu- We believe that we only need to
e are living in times sinesses raise money in a frozen mar- activate our adrenal glands
W when the quantum of ket. But as banks are free to lend the
money means little, money to whomever they want, the
and even the price of measure is missing the ‘targets’.
money is beginning to One of the largest corporates will
lose its relevance. What is critical is have the lion’s share, with banks rea-
the velocity of money — the pace at dy to invest `10,000 crore (out of
that will, on their own, pro-
duce certain chemicals and
send them into the bloodstre-
am; and lo and behold, we will
automatically be charged with
a passion to live and achieve.
which it changes hands. `37,500 crore meant for investment We are confident that our
That speed is slowing by the day as in primary bond issues). No rules are blood chemistry will enable us

FILE PHOTO
Red, Green and Yellow zones, signifying high-risk, low-risk families and businesses broken. It’s natural for to summon our failing courage
cut down spending, risk-averse banks to lo- and rekindle our lost hopes.
and medium-risk zones. Lockdown should be confined to hold back payments, ok for safe borrowers in This mechanistic worldview
the Red zones. Green zones should get back to work, people and conserve cash. The uncertain times, and To fly without fear, they need a safety net is the result of basic limita-
observing social distancing and other crisis of 2008 had boiled corporates to use their tions of the western paradigm
over from the financial size and standing to rai- and states to tide over mismatches in and means advances, direct purcha- that is uncomfortable with the
hygienic behaviour while commuting, districts of the world to se cheap funds to refi- receipts and payments — a mecha- ses of securities by RBI for lending to intangible refinement of the
at the workplace and even while stan- shopfloors. The virus of nance old loans, or nism known as ways and means. De- the government, government gua- world of the infinitesimal.
ding in queues to catch a bus or buy gro- 2020 has directly hit the R E V I VA L A F T E R LO C K D OW N
simply play around layed communication can bring furt- rantee for servicing of bank loans to Scientific labs are struggling
real economy, crept into with the money. It’s a ca- her distortions in a market that has MSMEs up to a year, opening credit to come to grips with the
cery. The Yellow zones, too, could have money markets, and now threatens se where new money created to tack- dried up — a case of wrong timing. lines to bank for on-lending to microcosmos through angs-
some degrees of normality. India can- to bring transactions to a standstill. le a crisis is going to borrowers that NBFCs, lowering RBI’s rules on pro- troms and nanoseconds.
RBI may not have targeted. Heal the Economy visioning cover ratio for banks, and Heisenberg’s Uncertainty
not afford to let the kharif sowing ope- Money Needs a Map Banks are unwilling to offer mora- Delays and errors can weaken the loosening the norm that identifies a Principle says that you cannot,
rations be aborted. How workers can be In such a world, blindly throwing torium on loan interest and repay- ‘support’ that the economy badly ne- corporate loan as a non-performing with equal accuracy, determi-
incentivised to turn up for work in the areas where they are money may not keep the wheels mo- ments to non-banking financial com- eds. We don’t know when the Co- asset (NPA) — steps that would help ne both the position and the
needed is for their employers and the district administra- ving. It could distort a faltering sy- panies (NBFCs) and microfinance vid-19 contagion curve will flatten, the lenders as well as borrowers. velocity of a subatomic par-
stem. As the lockdown prolongs, institutions (MFIs) that have borro- how many businesses would stay Any relaxed rule — particularly ticle like an electron at a given
tions and state governments concerned to work out. The what counts is not just stimulus, the wed from them — even though RBI afloat, and how long it would take for that aims to smoothen funding to time. So, it becomes even more
Centre should chip in with financial incentives. catchword of 2008-09. Fiscal and mo- had announced that the relief would the economy to stabilise once the MSMEs, NBFCs or MFIs — has to be daunting for the ‘scientific’
netary authorities must lend sup- be offered to all borrowers. It’s an in- lockdown is lifted. Till then, there simple and unambiguous. Most im- mind to empathise or resonate
Similarly, for India to continue to serve as pharmacy to
port to soften the blows from Co- stance of unclear communication. should be clearly laid-down prioriti- portantly, RBI and GoI must come to- with the transcendental spiri-
the world, production of drugs must proceed at full steam. vid-19. That support rests on when As states spending to tame the co- es and sequencing of measures. Whi- gether to decide on the degree of mo- tuality of eastern philosophies
WHO is supervising trials of four drug combinations: the money is spent, who receives the ronavirus outbreak rushed to bor- le GoI will, in likelihood, have to cut netisation and the level of additional and religions like Buddhism,
fund, and the clarity with which the row, there was a recent surge in yi- income-tax and goods and services risk to the sovereign emanating from Hinduism and Zen. The ‘ratio-
remdesivir; chloroquine and hydroxychloroquine; lopi-
message is communicated. That sup- elds on state government securities. tax (GST) to revive consumption — a scheme like partial loan guarantee. nal’ mind lurches from point to
navir plus ritonavir; and lopinavir plus ritonavir and in- port is often lacking — as is evident This, it’s widely believed, could have India’s biggest story — it has to first Some of the relaxations would be counterpoint and from thesis
terferon-beta. If any therapy emerges effective, India must from struggling companies and a been partly avoided if RBI (in consul- use every rule (and even change so- misused, particularly in the absence to antithesis — for, if a ray of
skewed money market. tation with GoI?) had proactively an- me) to enable fund flow to central and of data, while past experiences of fi- light is not made up of par-
produce enough to meet global orders. Pharma compani- scal irresponsibility may act as a de-
Over the past one week, companies nounced a higher limit on tempora- state governments. ticles, then it has to necessarily
es must work, their suppliers must work. The same goes gasping for funds are realising how ry loans it gives to enable the Centre It’s a bitter, yet unavoidable, step to terrent to a hawkish regime. But it consist of waves. If you are not
for makers of masks and personal protective equipment. avoid starvation deaths, food riots, may not open the floodgates of profli- happy, then you are sad.
minimise job losses, and send a sig- gacy if the ‘support’ matches the ‘sti- Experiencing reality first-
The logistics of ensuring steady supply of essentials must nal to businesses that it cares thro- mulus’. That would require getting hand, taking care not to exami-
be manned. Total lockdown is not sustainable. RBI and GoI must together decide on the degree of ugh easier rules and access to finan- the target, timing and transmission ne it through words or concep-
monetisation and the level of additional risk to the ce. Without these, a recovery could of the message correct. ts, is possible only when you
take far longer. transcend the circumscription
sovereign from a scheme like partial loan guarantee All this may call for higher ways sugata.ghosh@timesgroup.com of the material worldview and
soar beyond thought. After all,

Room to Widen there is no mind in the first

place. The mind is maya.

The Fiscal Deficit Sharing the Contagious Burden Chat Room

RBI’s Monetary Policy Report for April 2020 honestly articula- tion of business lockdown, as well by more than 50% of the average
tes the uncertainty heralded by the pandemic Covid-19. What as the next two months (the time by
which one could hope some ‘nor-
last six months’ revenue — due to
lockdown, the payables to their Don’t Wrap Up
growth would be globally and in India, what the rate of inflation
would be — all these depend on the severity of the pandemic, the
malcy’ returning), the payables to
the employees and contract workers
vendors could be made in four equal
monthly instalments of all out-
Lockdown Yet
time taken to contain it and the efficacy of policy domestically could be dealt in the following standing amounts as on the date of Apropos the news report,
and around the world in countering its ill effects. But, broadly, manner: lockdown (till March 25), and new ‘Covid-19 Lockdown: PM Holds
Akhil Gupta  Recipients could forgo part of payables post-date of lockdown Meeting with CMs; Lockdown
growth would be affected badly and inflation would come down their incomes: For employees with (from March 25) till two months Extension Focus of Discus-
sharply. This strengthens the case for stepping up public expen- CTC up to `25,000 a month, a pos- after the lockdown is lifted. sion’ (Apr 11), the possibility of
With the Covid-19 nationwide lock- sible 20% cut; CTC of `25,000-50,000, Unless government makes all extension of lockdown owing
FILE PHOTO

diture by widening the fiscal deficit significantly. The debate

should not be on whether India can afford to significantly ex- down causing severe constraints
and hardships on businesses and
pand its fiscal deficit but on how the deficit would be financed. livelihoods, among other requests
The reason why a high fiscal deficit raises eyebrows is that it made to the citizenry, GoI has also
signals macroeconomic stress. A high fi- asked businesses not to terminate
scal deficit could signal the government the services of employees during
this crisis. Most SMEs can comply
laying claim to private sector savings in with this request for, say, a month,
excess of what the private sector has to but to expect them to sustain
spare after its own planned investments. ‘unemployed employment’ beyond
that would not only be unfair, but
This would mean excess demand, leading
also practically impossible.
to higher inflation and a wider current India can only overcome this
account deficit. The demand shock pro- financial crisis and dodge economic
duced by Covid-19 means that the risk of excess demand ari- devastation if all four stakeholders
— employer, employee or contract
sing from government expenditure would be next to nothing.
worker, government(s) and vendor
In fact, without stepped-up public expenditure, demand wo- — make some sacrifices and share
uld collapse. India should raise resources by the conventional the financial burden. For the dura-
means of borrowing from the banks, borrowing from RBI
(that is, through a domestic version of quantitative easing, in-
25%; while those with CTC over
`50,000 a month need not be eligible
for relief provided by GoI, and their
salary-cut could be mutually agreed
with the employer. Other recipients,
for instance, a proprietor renting
out accommodation, could take a
1/3rd cut.
 Contribution by government:
Half of the balance payable after a
salary/rent reduction could be
reimbursed by the government as
credit against statutory dues pay-
able by the employer, e.g., goods and
services tax (GST), income-tax (I-T),
professional tax, provident fund
(PF), employees’ state insurance
(ESI). If that does not cover the total
amount, the amount could be pro-
Cuts to go all around
vided in cash to the employer.
 Employer: Employers could pay
net payable (after salary reduction)
to employees and other recipients.
Effectively, the employer ends up
paying a third to 40% of the amo-
unts normally payable to such
recipients. At end of two months
after the lifting of lockdown, emplo-
yers could resume normal pay-
ments without any deduction.
 Vendor payments: For employers
whose revenues have either stopped
or have reduced significantly — say,
concerned share the burden, no to the coronavirus pandemic
advisory or directive will prac- is welcome amid the fear of
tically work. Without doubt, this further spread of Covid-19.
government subsidy will result in The government had no op-
an increase in fiscal deficit. Howe- tion but to listen to the states
ver, in extraordinary times like and favour an extension to
these, there is no alternative but for save precious lives.
government — both central and Necessary arrangements to
states — to focus on the survival of provide medical facilities to
the citizenry and put fiscal deficit those affected by Covid-19 and
concerns on the backburner. Also, if supply of essential commodi-
the government is ready to bear the ties to reach its citizens is the
same amount of burden it expects need of the hour, especially in
businesses to bear — and is seen to the extended period of lock-
bear it — its appeal to businesses to down. Also, the government
fight this battle together will bear should stop spread of fake
much more credibility. messages and take proactive
steps for effective communica-
The writer is chairman, Bharti Infratel tion with the citizens in an
effective manner.
VARUN DAMBAL

Killing the Killer with a Shot

volving purchases of newly issued government bonds by RBI) Bengaluru
and external borrowing.
This is the time to raise money externally, when the dollar is Here It is, the 80
overvalued and guaranteed to depreciate as panic subsides
and the earlier flight to safety is reversed. Tapping an IMF line introduced BCG in 1948, and it has ry viruses to some extent, apart This meticulous minutiae of
Crore Question
of credit would both yield funds and reassure investors in a continued right into Mission In- from its proven non-specific effects research and production are what This refers to the infograph,
bond issuance by India. dradhanush, NDA’s ramped-up UIP. against other pathogens.’ vaccine-sceptics have chosen to ‘Costly Lockdown: Case For A
Since TB is endemic in India, BCG Dr N K Ganguly, ex-head of Indian ignore. Now, face to face with the Mid-Way Option’ (Apr 11).
cannot prevent primary infection, Council of Medical Research, says hydra-headed devastation of Co- Why do we have a population
or the reactivation of latent pulmo- it’s too early to pop the bubbly. But vid-19, against which there is really of 80 crore
nary infection, the principal cause he’s optimistic about the new re- only one mass saviour, the anti- who cannot
Bachi Karkaria of community spread. However, it combinant BCG manufactured by vaxer lobby will hopefully lose its have a square
Babies being named Corona, Covid, protects children against meningi- SII. Poonawalla confirms that it is in virulence, vaccine hesitants will meal if they
Lockdown, Virus are par for the course tis and disseminated TB, and it separate ‘Phase-3 trials in Germany return to the faith — and UIPs can do not work
Consider the irony. Yesteryear’s boosts innate immunity. The corona and India to test efficacy against get on with saving millions without even for a
object of suspicion is today’s Holy bonus is all very well. But an effec- Covid-19, and trials will also start in being held to ransom by unin- single day?

Monikers are Going Grail. Vaccine Hesitancy (VH) had

ranked among the World Health Org-
anisation’s (WHO) Top 10 Threats of
2019. Now, Covid-19 has blackballed
tive TB vaccine for adults is impera-
tive. A Lancet Commission predic-
ted that TB deaths would cost the
Indian economy at least $32 billion
the US, Australia and New Zealand.
We hope to see results in July-Au-
gust 2020, and if positive, the vacci-
ne will be licensed, and billions of
formed dissent masquerading as
the demand for ‘informed consent’.
Who knows which old vaccine will
protect us against a new virus or
The coronavi-
rus has laid
bare the ground economics
and reality of our nation that

Viral by Association every member of that dreaded club,

and given itself exclusive rights to
the world’s snowballing fears and
Children often have to bear the brunt of their parents’ over- stretched medical resources.
The good news is that it has resur-
wrought sense of history, like the two boys born in India and rected the value of vaccines as the
Thailand in 1979 who were named after the US space station. cheapest, safest and most effective
The examples of DMK president M K Stalin and Meghalaya weapon against the killers that
politician Adolf Lu Hitler Marak, however, show that India destroy lives and livelihood with
equal savagery. Hope has taken the
is tolerant when it comes to names, given that the latter’s mo- shape of an almost century-old
niker is verboten in many countries. But many babies being tuberculosis (TB) vaccine, BCG
named Tsunami after the killer wave of December 2004 also (Bacillus Calmette-Guérin) —
indicates that word associations are different for everyone. whose effect in its primary role is
somewhat iffy.
Hence, newborns being named Corona, Covid, Lockdown Respected studies have shown a
and Virus in places such as Patiala, Raipur, Gorakhpur and significantly lower incidence of
Deoria is not surprising. As 1.5 million babies are born every Covid-19 in countries with BCG
month in India, the names cannot be said to have gone Viral, cover. Gonzalo Otazu’s team at the
New York Institute of Technology
which, paradoxically, is a very popular name already. (NYIT) also concluded
Corona — as the Spanish word for crown — was an accepta- (bit.ly/34uFDBR) that the sooner
ble name for girls till the virus made it so infamous that even BCG was included in a country’s
immunisation programme (UIP),
baby name websites have deemed it ‘unviable’. Covid, Lock-
the lower the mortality rate of
down and Virus obviously have never figured in such lists. Covid-19. In Japan, where BCG
Just in case overenthusiastic parents change their minds, immunisation started in 1947,
mortality rate was 0.28, compared to
annually over the next 30 years.
Dr Cyrus Poonawalla’s Serum
Institute of India (SII) supplies 80%
of global BCG offtake. In India, its
price is maintained at ‘no more than
a cup of chai’. In fact, roughly two-
thirds of infants born anywhere in
2019 were immunised against at
least one childhood-killer with a
vaccine from SII. Poonawalla is
gung-ho about the recent correla-
tion, ‘BCG prevents many respirato-
FILE PHOTO
doses can roll out fast as all in-
frastructure and processes are
already in place.’
Among the India candidates wait-
ing clammy-handed in the wings is
Cadila Healthcare’s Mycobacteri-
um indicus pranii (MIP), developed
by Dr Pran Talwar. Its versatility
should subdue the scoff of the anti-
vaxers. It’s a leprosy vaccine, licen-
sed for squamous lung cancer and
tested for TB. It boosts immune
response, lowers inflammation and
prevents the auto-immune reaction
also seen in serious Covid-19 cases.
Ganguly is impressed most by the
result from its trial for septicaemia
with Post-Graduate Institute of
Medical Education and Research
(PGIMER), Chandigarh. Septicaem-
ic shock marks end-stage Covid-19.
MIP was seen to reduce mortality.
Poonawalla cautions, ‘A successful
corona vaccine will be globally
released, if at all, by us not earlier
than 12 months from now. After any
candidate is manufactured success-
fully, there have to be extensive
bacterium?
In any event, vaccines don’t need
proxy validation. Their service
since the 1790s, when Edward Jen-
ner targeted smallpox, is evident.
So, alas, is the havoc caused by
baseless resistance.
Just over a year ago, schools in
Delhi, Mumbai and Kerala stymied
Mission Indradhanush’s ambitious
new measles-rubella (MR) combo.
Measles infects 1.3 million Indian
children every year, risking blind-
ness, deafness, mental disability;
49,000 die.
The US, septic focus of anti-vacci-
nation and vaccine-hesitancy, has
seen an alarming resurgence of
measles. In 2014, 383 cases in Ohio; in
2014-15, a large outbreak from Cali-
fornia’s Disneyland toting 147 cases;
in 2017, 75 in Minnesota; 2018, 182 in
New York state, 67 in New York City
and 33 in New Jersey. Social media
fanned the fire of mis/disinforma-
tion. Sounds familiar?
Covid-19 is only the latest to show
how a single individual can fell
no one can hide behind dis-
guised figures and semantics.
The Five-Year Plans, Garibi
Hatao slogan, fake socialism,
etc, have only resulted in
creating this unnecessary
mass of people fed on sub-
sidies in exchange for votes.
Elements like the left, socia-
lists and activists thrived as
poverty and illiteracy are the
foundation of socialistic and
communist theology. We have
allowed this country to be
mired in perpetual poverty.
The nation’s delicate under-
belly has been exposed and it
is very hungry. It is time for
this hungry electorate to carve
their pound of flesh from the
elected, by first gheraoing
them and extracting the pro-
mises made. Make it difficult
for them to come to their
constituencies. Only then will
we see real democracy at work.
T R RAMASWAMI

Corona could become Corina or Coruna, Covid can be turned

19.7 in Iran which started it in 1984. clinical trials, over hundreds of whole communities. And to remind Mumbai
into Kovid (like the Indian-American screenwriter), Lock-
So, while the elderly are clinically volunteers. Then, the results would us that vaccines alone are the V-Day
down can be shortened to Lucky, and, of course, Virus can most vulnerable to this new virus, have to be very carefully examined of the killing, crippling, expensive Letters to the editor may be addressed to

morph into Virushka. they are shielded by their past. India Vaccinational security before mass production can start.’ war against infectious diseases. editet@timesgroup.com
 CONTRAPUNTO The best way to predict the future is to create it. PETER DRUCKER
THE ECONOMIC TIMES | MUMBAI | MONDAY | 13 APRIL 2020 | WWW.ECONOMICTIMES.COM
QUICK HITS
Lanka Makes Cremations
Compulsory for Virus
Deaths, Angering Muslims
Colombo: Sri Lanka made crema-
tions compulsory for coronavirus
victims on Sunday, ignoring
protests from the country’s mino-
rity Muslims who say it goes
against Islamic tradition. Of the
seven deaths from the infectious
disease so far in the island nation,
three were Muslims. The bodies
were cremated by authorities
despite protests from relatives.
“The corpse of a person who has f...
Covid-19 shall be cremated,”
Health Minister Pavithra Wannia-
rachchi said on Sunday. AFP
llllllllllllllllllllllllllllllllllllllllllllll
Social Isolation for Elderly
May Last Longer: EU Chief
Berlin: Elderly people may have to
be kept isolated until the end of the
year to protect them from the
coronavirus, EU chief Ursula von
der Leyen said on Sunday. “Witho-
ut a vaccine, we have to limit as
much as possible contact with the
elderly,” she told the Germany
daily Bild. “I know it's difficult and
that isolation is a burden, but it is a
question of life or death, we have
to remain disciplined and patient,”
she added. “Children and young
people will enjoy more freedom of
movement earlier than elderly
people and those with pre-existing
medical conditions,” she said. AFP
llllllllllllllllllllllllllllllllllllllllllllll
Spain’s Daily Virus Toll
Rises Again with 619 Dead
Madrid: Spain's daily death toll
from the coronavirus rose to 619
on Sunday, after falling for three
straight days, the government
said. The country, one of the worst
hit by the pandemic, has now
recorded 16,972 deaths from
COVID-19. The daily toll was from
510 on Saturday, compared with a
record 950 deaths as recently as
April 2. The number of confirmed
cases rose by 4,167 to 166,019, a
smaller increase than was recor-
ded on Saturday, the health
ministry said. AFP
llllllllllllllllllllllllllllllllllllllllllllll
Fauci Says Parts of US
Could Open Next Month
Washington: The United States’
top infectious disease expert says
the economy in parts of the count-
ry could be allowed to reopen as
early as next month. Dr. Anthony
Fauci says there's no light switch
that will be clicked to turn everyt-
hing back on. He says a “rolling
re-entry'' will be required based on
the status of the new coronavirus
pandemic in various parts of the
country. Reuters
FLU BLUES: TIPS, TRIVIA & TRENDS
93-Year-Old: The
Pandemic is What
Ales Her
A 93-year-old
Pittsburgh-
area woman is
using the
powers of the
Internet to keep a stock of beer while
doing her part to “flatten the curve”
on the coronavirus pandemic. Olive
Veronesi posed in her window with a
dry erase board that read “I NEED
MORE BEER!!” while holding a can of
Coors Light, KDKA-TV reported. The
image has been widely shared and
has been seen by over a million
people on the KDKA Facebook page.
The station reports that several
people have reached out to help
Veronesi get more beer. AP
Animal Lovers Move
into Shelter for
S African Lockdown
Dedicated staff at a South African
animal shelter have gone into
lockdown with dozens of dogs, cats
and horses to make sure its four-
legged residents are not left to fend
for themselves during the
coronavirus crisis. Despite the
outbreak, it’s business as usual for
the team at the WetNose Animal
shelter outside the capital Pretoria
where they
continue to
walk, exercise,
feed and care
for its unwanted
pets and farm
animals. “It’s been hard for the staff
because they have been on lockdown
on this property,” said shelter
manager Veronica van Greunen,
stroking a ginger cat. “Not visiting
their families, not allowed to go see
them, not allowed to go out of this
property. So they’ve basically been in
quarantine... with all the animals.”
Van Greunen said having workers on
site was key, as animals were still
being taken in by the shelter despite
being closed for adoptions until the
end of the lockdown — which was
extended to April 30 this week. AFP
Around the World  11
World Marks Easter at a Distance; British PM Boris Johnson
Discharged from Hospital
New Virus Hotspots Mushroom London: British PM Boris Johnson
said his personal battle with the co-
ronavirus “could have gone either
Coronavirus hotspots shifting as new concerns rise in Japan, Turkey and Britain way” and said there was “no ques-
tion” doctors saved his life, speaking
in a candid video message after lea-
Barcelona: The world celebrated
Easter at a distance on Sunday,
Cuomo, de Blasio ving hospital on Sunday.
The UK leader checked into hospi-
with most churches closed and fa- Spar over Future tal a week ago and spent three days
mily gatherings cancelled amid in intensive care after he was diag-
wide-ranging coronavirus shut- of New York City nosed with Covid-19 at the end of
downs. Huge uncertainties loomed
about the outlook not just for the
School Closures March, the most high-profile leader
to come down with the virus.
Boris Johnson
next few weeks but for the months New York: New York Mayor Bill de Dressed in a suit and tie, Johnson
ahead — with a top European
2 Blasio said Saturday that public thanked his doctors and vowed to UK Parliament to
Union official raising a question schools in the city would remain help Britain defeat the virus as the
mark over summer vacation plans. 1
closed to the end of the school year country’s death toll topped 10,000 on Return ‘Virtually’
as the coronavirus pandemic
Southern Europe and the United
States, whose death toll of over continues to rage, but the state’s
Sunday — a grim milestone only a
handful of countries have passed. on April 21
20,600 is now the world’s highest, governor later said the decision He said he was discharged after “a London: The UK Parliament will
have been the recent focal points of was up to him. week in which the NHS has saved return on April 21and may do so
the pandemic. But coronavirus “There is nothing easy about this my life, no question”, and officials virtually as the government
hotspots have been shifting cons- decision,” the mayor said at a said he would now convalesce at grapples with the coronavirus
tantly and new concerns are ri- morning news conference, before Chequers, the country estate of Bri- pandemic that’s caused almost
adding that “it clearly will help us
sing in Japan, Turkey, the US. Mid- tish prime ministers, on the advice 10,000 deaths and brought the
west and Britain, where the death save lives.” of his medical team. economy to a standstill. House of
toll on Sunday was expected to But hours later, Governor Andrew He added that UK “will defeat this Commons authorities will consi-
surpass 10,000. Cuomo insisted that the authority coronavirus and defeat it together" der how to use technology to best
St. Peter's Square at the Vatican, to make such a call was his. “You as he implored citizens to maintain allow lawmakers to fulfill “essen-
can’t make a decision just within
where tens of thousands would 3 4 New York City without coordina-
a nationwide lockdown imposed tial constitutional functions of
normally gather to hear Pope three weeks ago. But the country is conducting scrutiny, authorising
Francis deliver his “Urbi et Orbi'' ting that decision with the whole now seeing daily death tolls to spending and making laws,” the
metropolitan region, because it all
speech and blessing “to the city match those previously seen in Eu- government said on Sunday in a
and the world,” was empty of works together,” Cuomo said. rope's hardest-hit nations Italy and statement. The announcement
crowds and flowers on Sunday, The governor said he understood Spain, after recording nearly 1,000 follows calls from new Labour
ringed by police barricades. Pope de Blasio’s position, “which is he fatalities on Friday and Saturday. Party Leader Keir Starmer for a
Francis celebrated Easter Mass wants to close them until June, and With 10,612 fatalities, Britain now recall to allow members of Parlia-
inside the largely empty basilica, we may do that, but we're going to has the world's fifth highest death ment to hold the government to
do it in a coordinated sense with
with the faithful watching on TV toll but the actual figure may be hig- account as it tackles its greatest
at home. the other localities.” her as the count does not include peacetime crisis in modern
Freddi Goldstein, a de Blasio
Similar scenes played out around those who have died in care centres history. Bloomberg
the world. Some South Korean spokeswoman, noted on Twitter or at home. AFP
churches held Easter services onli- 5 6 that the two Democratic officials
ne while Catholic bishops in New had differed earlier on the timing of
shelter-in-place orders. “We were
Zealand wrote a special pastoral let-
Israel Set to Start Easing Curbs
1. Pope Francis delivers his ‘Urbi et Orbi’ message following Easter Sun- right then and we're right now,” she
ter to worshippers stuck at home. day Mass behind closed doors at St. Peter's Basilica 2. Police officers talk
In Europe, countries used road- said. "Schools will remain closed."
to a woman found during a lockdown in Kiev, Ukraine 3. A woman prays in The two men are longtime rivals
blocks, fines, gentle persuasion
and other tactics to keep people
from travelling over an Easter
front of a closed Westminster Cathedral 4. Protestant pastor Christoph
Sigrist blesses the city of Zurich from the Karlsturm tower of the Gross-
muenster church 5. Priest Lorenzo Fedele leads an Easter Sunday Mass on
and have butted heads before.
De Blasio unsuccessfully sought
with Lasting Job Losses
the party's presidential nomination
weekend that was basking in be- the roof of the Santa Maria della Salute church, for the locals to participa-
autiful spring weather. As hard- this year; Cuomo is the son of a
Jerusalem: Israel will soon be-
te from their balconies and windows 6. Turin’s Red Cross volunteers governor and has seen his profile
hit countries like Italy and Spain gin to ease restrictions on its eco-
deliver Easter eggs to medical workers at the Santa Croce hospital grow with his daily coronavirus
see reduced daily infections with nomy enacted to try to slow the
and deaths from the virus, econo- compatriots in a rare televised When and how weeks-old restric- briefings. The death toll in the
spread of the coronavirus, Prime
mic pressures are mounting to address Saturday night: “Every tions on public life are loosened is largest US city now stands at 5,820,
Minister Benjamin Netanyahu’s
loosen the tight restrictions on one of you has changed his life ra- something that “all of us have ... in according to the latest count from
top economic adviser told Israel
daily life put in place to fight off dically; every one of you has saved our hands, with our patience and Johns Hopkins University. But the
Radio on Sunday.
the pandemic. human lives in doing so and is sa- our discipline,” Frank-Walter Ste- rate of hospitalizations has slowed,
The relaxation will be gradual
Germany’s president told his ving more every day.” inmeier said. AP authorities say. AFP
and, depending on its duration,
the government could expand the
80 billion-shekel ($22.4 billion) Benjamin Netanyahu
Indonesia Orders Transport Saudi Arabia Extends
Iran Reports 117 New fiscal aid package it approved
Curbs Ahead of Ramadan Coronavirus Curfew last month to help businesses
Israeli President
Riyadh: Saudi Arabia’s King Salman extended Deaths, Toll at 4,474 and employees contend with the
fallout from the virus, Avi Sim- Rejects Request for
Jakarta: Indonesia on Sunday imposed curbs a nationwide curfew until further notice due to Tehran: Iran on Sunday announced 117 new hon said.
on public transport ahead of the annual the new coronavirus, the interior ministry said deaths from the novel coronavirus, bringing the The country has nearly 11,000 Coalition Extension
exodus to home villages that marks the on Sunday, after the kingdom reported more overall official toll to 4,474, even as it eased some confirmed cases and 103 deaths. Jerusalem: Israel’s president on
Muslim fasting month, in a bid to slow the than 300 new infections on each of the last four restrictions that had been imposed to slow the On Sunday, the cabinet voted to Sunday rejected parliament
spread of the coronavirus in the world's days. Last week Saudi Arabia spread of the illness. Health ministry spokesman place all travelers from abroad in- speaker Benny Gantz’s request for
fourth most populous country. placed its capital Riyadh and Kianoush Jahanpour also told a news conference to government-run quarantine fa- more time to form a government,
Still, the curbs are far short of the calls by some other big cities under a 24-ho- that 1,657 new infections had been confirmed in cilities, the latest in a series of me- as talks persist on a possible
health experts for an outright ban on the Rama- ur curfew, locking down the past 24 hours, taking the total to 71,686. asures that have increasingly limi- interim alliance with Prime Mini-
dan travel home as the number of cases and much of the population. Else- Iran has carried out 263,388 tests for the virus ted access to the country and mo- ster Benjamin Netanyahu. Gantz
deaths from the new disease jump. Indonesia so far, he added. Of those confirmed to be infected
where, the curfew which be- vement within it since late was given the mandate to form a
confirmed a record daily increase of 46 deaths gan on March 23 runs from 3 with Covid-19 and admitted to hospitals, 43,894 January. government four weeks ago by
on Sunday to 373, the highest official toll in East p.m. to 6 a.m. The country has have recovered and been discharged, while In a separate interview, Finan- President Reuven Rivlin following
Asia after China, where the novel coronavirus recorded 4,033 infections 3,930 are in a critical condition. Iran announced ce Ministry Budget Director Israel's March 2 election, the
was first detected. The number of cases rose by with 52 deaths, the highest its first coronavirus cases on February 19. The Shaul Meridor told Israel Radio country's third inconclusive vote
399 on Sunday to 4,241, also the biggest daily among the six Gulf Arab states where the total new tolls come as Iran has started a gradual that he hopes the easing will be- in a year. Then in a surprise move
increase. Health experts have been warning that has surpassed 13,600 with 89 deaths. The king- reopening of its sanctions-hit economy. On gin immediately after this we- last month, Gantz was elected
Indonesia faces a surge in cases after a slow Saturday, it allowed small businesses to reopen
dom has halted international flights, suspen- ek's Passover holiday, with speaker of Israel's parliament and
government response masked the scale of the ded the year-round umrah pilgrimage, and outside the capital and this will be extended to high-tech companies and pre- pledged to seek an emergency
outbreak. Reuters closed most public places. Other Gulf states the capital Tehran on April 18. Reuters schools being among the first to unity alliance with Netanyahu. AFP
have taken similar precautions. Reuters reopen. Bloomberg
YOUR DAILY DIET OF FUN AND FACTS Crossword 7693
Assange Fathered 2 Kids with 1 2 3 4 5 DOWN
1 Cleaner’s removing woody
Lawyer in Ecuador Embassy 6 7 8 plant rook carried in (9,5)
2 Identify fellow convict (4)
3 You left theatrical circuit to
WikiLeaks founder
become a reviewer (6)
Julian Assange fathered 9 10
4 Inspector General abandons
two children with one of duty, making a sacrifice (8)
his lawyers while holed 5 Extract from overbearing part
up in Ecuador’s embassy of speech (4)
in London for much of 11 12 13 14 7 Lower barrage enclosure (6)
the past decade, a 8 Traffic wardens relax with one
report on Sunday said. father, son and bikers
The 48-year-old regularly (8,6)
15 16 17 12 Stamp that’s on tyre (5)
Australian is allegedly
14 Search is discouraged to
the dad of two boys — aged two and one — born to South African-born
18 some extent (5)
lawyer Stella Morris, the Mail on Sunday reported. The newspaper
16 Workers employed by de-
published the report alongside photographs of Assange with the 19 20 21
ceased duke grieved (8)
toddlers and an interview with Morris who said they “fell in love” and
18 Barrier surrounding
were planning to marry. The couple have been engaged since 2017, writer’s cell (6)
according to the paper, which said it learned about the revelations in 21 Dialect some caught on
23 25
court papers seen last week. Assange is being held in London’s high 22 24 Guernsey (6)
security Belmarsh prison as he fights an extradition request by the US 23 Look up and down (4)
to stand trial there on espionage charges. The Mail on Sunday said 25 See Red Baron painting (4)
Morris chose to reveal their relationship and the existence of their 26
sons because “she fears Assange’s life is at serious risk if he remains in
Belmarsh”, due to the spread of coronavirus. AFP
SOLUTION TO No. 7692:
ACROSS: 1 Chimney sweep,
Queen Stresses Importance of Restrictions 8 X-raying, 9 Lunatic, 11 Relega- LEADER BOARD
ACROSS 17 Completely at home with tion, 12 Buoy, 14 Vascular,
HIDATO 7 LITTLE WORDS
Queen Elizabeth II has stressed the need for the 6 Pest officer and men hurry to limit Oz dog (2,4) 16 Rupert, 17 Pie, 19 Global,
Sanmatindra Ujjwala Warawdekar
British people to continue to abide with trouble (8,6) 19 Writer’s going round to stay in the 21 Mistrial, 24 Node, 25 With-
9 Obtain backing to follow friend’s same place (6) drawal, 27 Animate, Faridabad N. Mumbai
lockdown restrictions over the rest of the Easter
financial plan (6) 20 Where straggler is, in spite 28 Emporia, 29 Skeleton keys. Tejas Chadha Bhuvaneshwari G
weekend. In a two-minute audio broadcast from
10 Scoff beef initially in shopping ofeverything (5,3) DOWN: 1 Charles, 2 Icing sugar, Faridabad Chennai
Windsor Castle, the queen said that by “keeping
centre, in this form? (8) 22 Sort of account that creates 3 Nightcap, 4 Yellow, 5 Wine,
apart, we keep others safe” and that the
11 Renew cables to bar (8) excitement? (8) 6 Extrude, 7 Extravaganza,
coronavirus “will not overcome us”. Social
13 Gradually introduce latest photo- 24 It’s hard to succeed in murder 10 Crystal clear, 13 Custard pie,
distancing rules were observed during what is graph, not large (6) trial with this cipher (6) 15 Rim, 18 Eighteen,20 Old
believed to be the queen’s first Easter message. 15 Get under someone’s skin, using 26 Boss cook I recruited to Nick, 22 Inwards, 23 Silent,
The 93-year-old monarch delivered the address this? (6) perform around 4 (5,9) 26 Dahl.
alone into a microphone from the castle’s White Drawing room while
the sound engineer was in a nearby room. Last Sunday, in a rare special ©The Daily Mail
televised address to the nation, the queen evoked wartime memories
to reassure people that “We will meet again”. AP
UAE Launches Online Weddings
The UAE has launched an online marriage Dilbert by S Adams
service that allows couples to wed amid
restrictions on movement and interaction
imposed to counter the deadly
coronavirus. The justice ministry said on
Sunday that citizens and residents can set
a date for an online wedding ceremony
conducted via video link with a cleric after their paperwork is Yesterday’s Answers:
submitted and approved — also online, according to the UAE’s official
news agency WAM. The procedure will see a cleric confirm the identity ET will carry the names of winners for
of the couple and witnesses, before a marriage certificate is relayed to Hidato and 7 Little Words every day.
a specialised court for validation. The couple will receive confirmation Please whatsapp your solutions for both
of their marriage certificate via text message. AFP to 79 01010174 with your name and city.
 Exorcise
regimen
THE ECONOMIC TIMES
Singer Robbie MUMBAI
MONDAY
Williams says 13 APRIL 2020
that he hasn’t
www.etpanache.com
seen any ghosts
since he became ADVERTORIAL &
a father PROMOTIONAL FEATURE

Three steps to make A leadership trait that

that’s bothering you]”.
This will tell you what’s at the heart of
the anxiety, which in turn will let you
examine your reactions to the sensors.
What emotion are you feeling most in-
tensely? Frustration, anger, sadness,
helplessness? And what do you notice
can help weather the
stress work for you Covid-19 storm
in your body: Do you feel tightness in
your neck and shoulders, or do you
have difficulty sleeping?

Step 3 Use your stress Rajesh Anandan, CEO, Ultranauts,

You have successfully managed to believes in crises like these, vulnerability
Here is how you can prevent it transform your stress from being a
Acknowledging stress will help over- Cricketer MS negative to a posi-
is key to being a good leader
from spinning out of control come what’s known as ‘ironic mental Dhoni has been tive thing. Now shannon.tellis@timesgroup.com

T
processing’. When we consciously at his Ranchi you need to
hese are stressful times avoid thinking about something — in home during self- leverage this in In times of crises, CEOs are expected to
isolation, spending
we a r e l iv i n g i n. T he this instance, coronavirus — our time with his order to achieve be decisive, transparent and compassion-
coronavir us pandemic brain keeps checking in to see if family and dogs your goals. ate. But they should also allow themselves
is not only taking its toll we have avoided it successfully, A sk you rsel f: to be vulnerable, says Rajesh Anandan,
on the health of millions thereby ironically reminding us Are your typical co-founder, Ultranauts Inc. Rajesh Anandan wrote that
of people a rou nd t he world, it’s of it. So not only will avoiding responses in align- “If you’re leading a team, now is the time he too had been suppressing
fears and concerns about his
also causing us to worry about the the topic not help, it’s actually ment with the values to show your fear, because that, more family, friends and business
economy, and our own livelihoods counter-productive. behind your stress? If than anything else, will help teammates
and futures. And ironically enough, you’re worried about feel safe,” he tweeted.
reading warnings about how stress is Step 2 Own your stress your family getting Accordi ng to A na nda n, it is “I thought I managed the situation
bad for the health is making us even Once you’ve acknowledged sick because you care vulnerability and not compassion that fine as a CEO,” he wrote in a blog post. “I
more anxious. If there is one silver the elephant in the room, about t hei r hea lt h, signals to a team that it’s safe and that engaged the leadership team and board
lining amid all this gloom, it’s that you may want to welcome is snappi ng at t hem they belong. It’s a sentiment that Biocon early, took action quickly and decisively,
we can use stress as a launchpad to it. Our minds are con- for not washing their MD Kiran Mazumdar-Shaw agrees with. a n d c o m mu n ic at e d c le a rly a n d
improve our overall well-being. ditioned to stress only hands the best way to In a recent interview, she said, “You have transparently. I projected confidence and
Indeed, research suggests that it’s not about things that we protect them? If you’re to be out there, keep giving messages to compassion, just what the team needed,
the amount of stress that determines care deeply about. By worried about the effects your people. Your leadership team has or so I thought.
its impact; it’s actually our mindset owning our stress, we of coronavirus on society, to keep handholding and making sure “Thanks to my daughter and those
about stress that matters the most. connect to a positive is seeking out constant news people feel safe. Every few days, I’m dead mushrooms, I tried to surface
One study said that people who believe personal motivation coverage the best way to help sending out messages and video clips to the fears that I knew I must have
stress is bad for their health were 43 behind its the community? my employees, telling them to reach out buried somewhere. Fear for my family,
per cent more at risk than those who existence. Much of what is happening is to us if they have any concern.” especially my 80-year-old mom. Fear
didn’t view it as being harmful. Taking an beyond our control. But there for my friends and colleagues, some of
And while changing mindsets about escapist are also unprecedented oppor- Make room for fear whom are immune-compromised. And
coronavirus isn’t likely to happen route m ay tunities. Some psychologists When the coronavirus pandemic struck, yes, fear for my company, which is doing
instantly, it is possible to shift our deny or argue that true transfor- Anandan thought he had adequately fine right now but might not be okay in
reactions. Here’s a handy three-step disconnect mation can occur only prepared his team — which was already a catastrophic scenario that we failed to
guide on how to harness the benefits of ourselves from during crises. The working 100 per cent remotely — to consider.”
stress while minimising its harmful the things we Chess champion trick is to channel weather the crisis but an incident with Anandan believes talking about these
effects: value the most. Vishwanathan your stress as energy his daughter (where she struggled to fears openly may be just what his team
Anand has said
In order to that having his to make the most of process the death of some mushrooms needs: “Now, more than ever before,
Step 1 Acknowledge your stress connect with the family close to him this time. she had been growing) made him realise what we all need to feel is that we’re in
When we consciously acknowledge
our stress and label it, we move neural
activity from the amygdala — the
values and goals un-
derlying your stress,
t r y c omplet i n g
is key to dealing
with stress
Trying to utilise
ou r st re ss mi g ht
sound overly
that maybe he too had been suppressing
his fears. each other.”.
this together and that we’ll take care of

centre of emotion and fear — to the this sentence : optimistic, or even

PICS: GETTY IMAGES

prefrontal cortex, which is responsible “ I ’m st r e s s e d unfeasible. But PUBLISHED FOR THE PROPRIETORS, Bennett, Coleman & Co. Ltd. by R. Krishnamurthy at The Times of India Building, Dr. D. N. Road,
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has been staying off screen other words, we move from reacting cause of stress] Barack Obama credits tive: Failing to embrace Elegant Offset Printers, Shed No. D2-31, Thivim Industrial Estate, Karaswada, Mapusa Goa - 403526. Tel No. (0832)-3045100, Fax -
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shared that she spends her time
tie-dying, painting and reading
to stress in a fearful and reactive
manner to being more thoughtful and
deliberate in our actions.
because I care
de eply ab out
[insert the issue
attitude to early
morning exercise and
his Hawaiian roots
stress will only create
more stress
— The New York Times
. whole or in part without the written permission of the publisher is prohibited. TN/Chief PMG/400/2002. RNI NO. 6252/1961 VOL-
UME 60 NO. 39 AIR CHARGE Chennai & via Rs. 3.00, Ahmedabad, Bengaluru, Hyderabad, Mangalore & via Rs. 4.00, Delhi, Kolkata &
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How do you solve This former batsman is applying a cricket BIG SHOT
a 158-kg Rubik’s technique for home chores
Cube? While at home doing the
household chores, former
He had earlier tweeted that
he wished his house was
to be perfect, not imperfect,”
Manjrekar said while cutting
It’s another
busy day of
India batsman smaller, having to do vegetables at home as India
Exactly the Sanjay Manjrekar all the work at home. observes a 21-day lockdown working from
In a tongue-
same way you said he discovered Manjrekar had to fight the deadly Covid-19 home at the
in-cheek
Bedford farm!
PIC: GETTY IMAGES

that sweeping a previously reminded pandemic.

would the tweet, Sanjay
PIC: INSTAGRAM/ SANJAY MANJREKAR

cricket ball and people how he Manjrekar was recently

Manjrekar
normal-sized one sweeping the floor
recently
believes technique dropped from the Board of
require the same is the key to attain Control of Cricket in India's
Find the Rubik’s Cube technique.
compared the perfection in life. (BCCI) commentary panel for
Tony Fisher spend
too easy a challenge? 330 hours on the “Same technique. technique for He posted a video the now-cancelled India-South
Try Tony Fisher’s new 2.022 metre Sweeping a cricket sweeping a showing him cutting Africa ODI series.
version. The 54-year- ‘Ru-big’ cube ball & sweeping cricket ball and vegetables and He had said that he accepts
old has been awarded the floor,” cleaning the explaining how the board’s decision not to
floor
by the Guinness World Records for making
the world’s largest version of the classic
mindbender game.
Manjrekar said in
a tweet, perfectly
tongue in cheek.
the knife should
be held properly.
“Everything in life has got
panel .
include him in its commentary

— IANS
Sanjay
Manjrekar

Tony spent 330 hours on the 2.022-metre

puzzle, which works like a regular one
and weighs 25 stone (158 kilograms),
in his garage in Ipswich, Suffolk. The
former archaeologist, who runs a website
for puzzles, said, “As a child, I loved the
Here’s the spot to find a bounces off the disk and escapes.
“We observed light coming
from very close to the black hole
bited by a sun-like star; together,
the pair is called XTE J1550-564.
The black hole “feeds” off this
Guinness Book of Records. It was my dream
boomerang made of light that is trying to escape but in- star, pulling material onto a flat
PIC: INSTAGRAM/MARTHASTEWART

to get in. stead is pulled right back by the structure around it called an ac-
“Another interest was the Rubik’s Cube. black hole like a boomerang,” cretion disk. The team found im-
PIC: NASA/JPL-CALTECH

These two interests came together when I A black hole, says a new study, said Riley Connors, lead author prints indicating that the light
realised there was no official record for the is a good place to look for a boo- of the study and a postdoc- had been bent back toward the
Entrepreneur Martha
largest Rubik’s Cube,” he explained. merang made of light. Not all of toral scholar at Caltech. “This is disk and reflected off. The sci- Stewart during a video
There exists one record, the fastest time the light streaming from a black something that was predicted in entists say that the new results conference call at her home
taken to solve the Rubik’s Cube, held by hole’s surrounding disk easily the 1970s, but hadn’t been shown offer another indirect confirma- in Bedford, New York

seconds in 2018 .
China’s Du Yusheng, who solved it in 3.47

— Daily Mirror
escapes. Some of it gives in to the
monstrous pull of the black hole,
turns back, and then ultimately
The researchers specifically looked at
until now,” Connors added.
The researchers specifically
looked at a black hole that is or-
theory of relativity .
tion of Albert Einstein’s general

— ANI
a black hole orbited by a sun-like star

:::::: waiting games

ONE OPPONENT FEDERER AND WOODS COULD LOSE TO Justin Gatlin

Age in August 2021: 39
Olympics competed in:
The ticking clock, Roger Federer competed in,” Federer had Tiger Woods improved, and he would Three
Age in August 2021: 40 said of Sydney 2000. Age in August 2021: 45 have entertained dreams of Medals won: One
combined with the Olympics competed in: Four Olympics competed in: Zero qualifying for the Tokyo Gatlin had planned to retire
postponement of Medals: Two Serena Williams Medals: Zero Games. A one-year delay in 2020 after competing in
The 20-time Grand Slam Age in August 2021: 39 Golf returned to the would give him a chance of his fourth Olympics at the
the Tokyo Games, champion won an Olympic Olympics competed in: Four Olympics after a 112-year improving his ranking. He’s age of 38. However, the
may mar the Gold in the 2008 Beijing Medals: Four gap in 2016, but Tiger the sixth-ranked American American star now plans to
Games, when he partnered The American great already Woods missed that golfer, and only four are extend his career in order
winning chances of compatriot Stan Wawrinka has four Olympic gold due to injury. guaranteed to qualify. to compete in the
these top Olympians in the men’s doubles. Four medals, and so her desire to However, his form Woods, the winner of 15 rescheduled Tokyo Games.
years later, he won silver in compete in Tokyo next year has since majors, has also been “A lot of people think that
the men’s singles, as home may not be as pressing as fighting a back injury, so at time is against me or
favourite Andy Murray that of Federer’s. Williams least the delay gives him against older athletes in this
clinched gold in London. A won a singles gold at London renewed hope of a situation, and it’s far from
knee injury meant he missed in 2012, and women’s swansong. the truth,” said Gatlin, who
the 2016 Games in Rio. doubles gold in 2000, 2008 has served two suspensions
Federer made his Olympic and 2012, all partnering with Lin Dan next Games roll around. He He then also lost the bronze for drug offences.
debut 20 years ago, and sister Venus. The sisters lost Age in August already has gold from medal playoff. While age will However, the 2004 Olympic
made it to the semi-final. their opening round match in 2021: 37 Beijing in 2008 and London not be on his side in 2021, champion could face a battle
He also remembers Rio, while Serena’s singles Olympics com- four years later, adding to he will hope he can use the to even qualify given the
Australia fondly, as it was title defence was peted in: Four his five world titles. time to get his form back. depth of the US men’s
where he started his ended by Elina Medals won: Two However, there is a hint of Lin played 21 tournaments sprinting squad, with
romance with now-wife Svitolina in the third The controversial unfinished business for Lin, in 2019, but made it to the Christian Coleman and Noah
Mirka Vavrinec. “Overall, it
was probably the most
unbelievable Olympics I
round. A knee injury
forced her to miss the
2004 Athens Games.
Chinese badminton
superstar will be 37
by the time the
who was defeated by his
long-time rival Lee Chong
Wei in the semi-finals at Rio.
final on only three
occasions, while nine were
first-round exits.
100m and 200m .
Lyles the favourites in the

— AFP
PICS: REUTERS, GETTY IMAGES, AFP
THE ECONOMIC TIMES HOW MUCH
RISK CAN YOU
TOLERATE?
P12
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | April 13-19, 2020 | 24 pages | `8

The stock crash has hit

the EPFO corpus. Unless
it has enough reserves, it
may not be able to give
more than 7%. P2

Should you opt for The hidden Learn how to Brace for
a Covid-specific costs of going navigate the interest rate
insurance plan? to work tough times volatility
P8 P9 P14 P16

W E HELP YOU CHOOSE THE BEST IF,

WORI(SX , 1 I I 1
 cover story
02 The Economic Times Wealth April 13-19, 2020

The sharp drop in the

equity market in March
has dented its corpus.
Unless the EPFO has
enough reserves, it
may not be able to give
more than 7%.
ILLUSTRATION: ANIRBAN BORA

By Babar Zaidi
EPF rate has hit an 8-year low
I
f you were disappointed when the
Employees’ Provident Fund Organisation Late start and small exposure prevented EPFO from gaining from equity rally.
(EPFO) declared an interest rate of 8.5%
for 2019-20, be prepared to get shocked Sep 2016
now. The 8.5% interest rate was based on Equity
the returns earned by the EPFO corpus during EPF RATE % 8.8 proportion
the full financial year. According to one news re- raised to
port, Central Board of Trustees (CBT) members 8.75 10% of
inflows May 2017 Rate
were told at a meeting on 6 March that the debt announced
8.75 Equity
investments would generate 8.15% while the bal- proportion by EPFO
ance 0.35% would come from booking profits in Aug 2015 but awaits
EPFO starts hiked to 8.65 Finance
equity investments. 15%
investing Ministry
However, the stock market crash in March 5% of new 8.65 approval
eroded the value of the EPFO’s equity investments inflows in
by over `27,000 crore. It is not clear whether the equities
EPFO fund managers managed to sell some of the
8.55 8.5
investments before benchmark indices fell off 8.5
the cliff. Though equities accounted for less than 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
6% of the massive EPFO corpus, the 30% drop in
the benchmark indices in March could eat into NIFTY RETURNS % 26.8
its overall returns. Our estimates show that if the 18.9
15.4 17.8
decline in the equity portion is factored into the 14.9
calculation of returns, the EPFO may not be able 10.2
to give more than 7% for 2019-20 (see graphic).
A 150 basis point cut in returns may not seem -9.2 -26
very cataclysmic at a time when stock markets
have crashed by 30%, mutual funds are down 10-
20% and interest rates have declined by 70-80 bps
points. But Provident Fund members are not used
% of EPF corpus in equities
to market-linked returns. For them, even a 15 bps
cut is a major cause for concern.
Of course, what EPFO could do is sell off some 0 0 0 0.6 1.8 3.6 5.1 4.4
of the equity investments and use the proceeds
 cover story
The Economic Times Wealth April 13-19, 2020 03

to pay the 8.5% rate it has announced.

“The EPFO will give 8.5% returns as an-
nounced in the CBT meeting. How this
will impact the corpus and future returns Looking under the hood
is something we shall see next year,” says Calculating the returns earned by the EPF corpus is a challenge. Even in normal times, the
Virjesh Upadhyay, General Secretary of EPFO is very economical with numbers and gives out data after an excruciating lag. The
the Bharatiya Mazdoor Sangh and mem- lockdown has only made things worse. We had to make some broad assumptions for
ber of the CBT.
calculating the returns. Here is how we went about this.
But selling off assets to give out a higher
return is a questionable practice because The next In May 2017, Besides index In Jan 2018,
it jeopardises the long-term future of the EPFO started
year, in Sept the quantum ETFs, the EPFO a proposal
scheme. “Only Ponzi schemes give out re- investing 5% of
2016, this was further also invested to hike
turns higher than what their underlying new inflows in
was raised to raised to 15% in CPSE ETF investment to
investments generate,” says Dhirendra equities from
10% of fresh of the fresh and Bharat-22 25% of inflows
Kumar, CEO of mutual fund tracker Value August 2015.
inflows. inflows. ETF. was rejected.
Research. “They flourish when inflows
are more than outflows and run aground
once the reverse happens,” he says. Labour Minister Santosh
Gangwar said last year Based on this number and the
Not so prudent accounting that EPFO had invested investment pattern followed
When EPFO started investing in equi- by EPFO, we worked out the
ties in August 2015, many people wel- `86,966 crore annual inflows into EPFO in
the past five years.
comed the move. After the 2014 rally in
stocks, there was widespread optimism.
in equities till
The EPFO initially put in 5% of fresh September 2019.
inflows in Nifty ETFs. This was raised
to 10% of inflows in 2017 and to 15% in
2018. “Investing in equities is a bet on Annual inflows into the EPFO Equity investments by EPFO
the economy and based on the premise Financial year Equities (`cr) Debt (`cr) Total (`cr) subscribers have steadily
that tomorrow will be better than today.
2015-16 5,166 1,49,834 1,55,000 grown in the past five years.
Since EPFO is long-term money, it makes
eminent sense to invest it in equities,” 2016-17 12,884 1,49,866 1,62,750
says Kumar. From `646 crore
2017-18 25,633 1,45,254 1,70,888
The problem, however, lies in the way a month in 2015-16, EPFO
the EPFO accounts for its equity invest- 2018-19 26,915 1,52,517 1,79,432 subscribers now invest
ments. The retirement body has always
invested in bonds and other fixed income
2019-20 28,261 1,60,143 1,88,403 `2,355 crore in
securities and declared a rate of interest
Note: The inflows have been assumed to rise 5% every year due to increase in wages and new joinees. equities every month.
based on the interest it earned from these
investments. But it gets tricky when you Monthly equity investments by EPFO
include equity investments in the equa-
tion. Unlike mutual funds and the NPS, According to the EPFO Equities (`cr) 2,355
annual report of 2014-15, 2,136 2,243
the EPFO corpus is not unitised and the The
the total corpus of the
value of investments is not marked to mar- monthly
three schemes (EPF, EPS
ket. Declaring a rate based on the notional investment
and EDLI) was figures
gains (or not accounting for losses) on eq- 1,074
uity investments is fraught with risk.
In November 2017, the EPFO had an-
`6,33,713 cr were used
to start SIPs 646
on 31 March 2015. This
nounced a unitisation plan under which in an index
was put in bonds in the
ETF units would have been credited to fund in Aug
portfolio tracker to earn
individual accounts. The plan has not been 2015.
8.3% returns. 2015-16 2015-16 2015-16 2015-16 2015-16
implemented for the simple reason that
it is not workable. Holding ETFs would
require opening demat accounts for the es-
The fresh inflows that went The final picture does not But this is the cumulative loss
timated 4.8 crore EPF members. Moreover,
into debt were put into the look very pretty. The equity since the first equity investment
unlike mutual funds, ETFs cannot be held
PPF every month to earn portfolio has suffered an in Aug 2015. The loss is bigger at
in fractions. the market-determined
returns offered by the
overall loss of nearly
`27,000 crore
Covid related withdrawals
Withdrawals add a new dimension to the
small savings scheme. `9,200 crore. if we look at the financial year
2019-20 in isolation.
problem of accounting. The EPFO is al-
lowing withdrawals from the Provident
Fund if subscribers are facing financial
It is not clear if EPFO fund managers booked profits in equity EPFO has in the past sold ETFs to book profits.
investments subsequently. News reports suggest that EPFO was In 2017-18, it sold ETFs and made capital gains
difficulties due to the lockdown (see
not able to offload its equity investments before the markets of close to `1,000 crore. We factored that in by
box). If the EPF has earned around 7%
tanked in March. So, the equity portfolio would have shrunk redeeming equity investments worth
in 2019-20, but gives out 8.5%, people who
from about `1,12,000 crore in early February to about
withdraw during the year may be taking `4,110 crore in February 2018.
out more than their money has earned.
There may also be non-Covid related
`85,500 crore by the end of March. That amount was added to the debt portion.

withdrawals and retirements during the

year. What will these mean for members At a meeting of the Central But the losses from the equity
who remain invested? In the past, if earnings from
Board of Trustees on 5 March, portion are huge. If factored
To be fair, the EPFO keeps funds in investments were lower than
the EPFO announced a rate of in, the returns earned in
reserve to manage exigencies, though it expected, the EPFO dipped
2019-20 could be as low as
is not clear how much is lying in reserve
right now. In the past, it has also booked
8.5% into reserves to maintain a
healthy interest rate. 7%.
for 2019-20.
profits in equity investments. In 2017-18, it
sold ETFs and made capital gains of close
 cover story
04 The Economic Times Wealth April 13-19, 2020

Should EPFO invest in equities?

ET Wealth reached out to members of the Central Board of Trustees and an expert to know whether
the decision to invest in equities was a sound one. Here’s what they have to say:

No
The possibility of a slightly higher
return does not justify the risks
From the very beginning, trade unions have op-
posed the EPFO decision to invest in equities. The
possibility of a slightly higher return does not
justify the risks involved. I ask the government,
why are you capping the equity investment at
15%? Take it all, but only if you can guarantee a
fixed return. If there is no guarantee, don’t risk
the hard earned money of employees. While
trade unions are against investing in equities, the
representatives of employers have sided with the
government decision. They are market friendly
because they represent the interests of the cor-
porate sector. But the Finance Ministry now takes
the decisions on EPFO investments. The CBT has
to accept whatever it decides.
Yes
Equities have the potential to generate
higher returns for subscribers Yes, but
It is not correct to judge a long-term investment on
the basis of day-to-day market movements. There
is no doubt that the decision to invest EPFO money There should be transparency in the
in equities was correct. It was due to the returns investment process
from equities that allowed us to give out a higher
Investments in equities can be very distressing in the
rate of interest last year. The entire global markets
short term but also very rewarding in the long term.
are down, so India is not an exception. Please keep
Since EPFO is long-term money, it makes eminent
in mind that the returns are market linked and
sense to invest it in equities. Having said that, trans-
dynamic. Even before the EPFO started investing
parency in the investment process and management
in equities, the returns were coming down. At one
of the corpus are critical. It is not clear how the EPF
time, the EPF was giving 12%. Then it came down
calculates its equity returns and how the losses on the
to 10% and eventually 8.5%. This year too the EPFO
equity portion will be accounted for. Ponzi schemes
will give 8.5% as was announced in the CBT meeting.
give out returns higher than what their underlying
How this will impact the corpus and future
investments generate. These schemes flourish when
returns is something we shall see next year.
inflows are higher than outflows, but run aground
when the reverse happens. This is certainly not true
in case of the EPF. So let’s hope that people don’t start
withdrawing huge sums using Covid as an excuse.

VIRJESH
DHIRENDR A
A.K. PADMANABHAN UPADHYAY
KUMAR
CITU VICE-PRESIDENT BMS GENER AL
AND CBT MEMBER CEO, VALUE
SECRETARY AND
RESE ARCH
CBT MEMBER

to `1,000 crore. But it has been very economi-

Covid relief: Subscribers can withdraw EPF cal in sharing information. The latest annual
report on its website pertains to the year 2016-
17. Our calculations are based on the num-
EPFO is allowing withdrawals of up to three months’ basic and DA or 75% of balance, whichever is lower.
bers disclosed by Labour Minister Santosh

T
he EPFO is allowing withdraw-
als from the Provident Fund if
subscribers are facing financial
difficulties due to the lockdown. An
EPF member can withdraw up to three
months’ basic and dearness allowance
or 75% of the balance in the account,
whichever is lower. These are non-
refundable withdrawals so members
are not required to replenish their ac-
counts. If the PF is with an exempted
organisation or managed by a private
trust, the member will have to contact
his employer for the withdrawal.
Since the facility was introduced
on 26 March, the EPFO has already
processed about 1.4 lakh claims and
disbursed roughly `280 crore. “The
system is processing all applications
which are fully KYC compliant within
72 hours,” the EPFO said in a statement.
The EPFO clarified that since this is an
advance, the withdrawals will have no
tax implications for subscribers.
The withdrawal can also be done
online. For this, one must have an
activated Universal Account Number
(UAN), the Aadhaar should be veri-
fied and linked with the UAN and the
bank account with IFSC Code should be
seeded with UAN. No other documents
are required.
Experts say that though it has be-
come easy to withdraw the EPF corpus,
one must do so only if there is a pressing
need. Since the EPF contribution is a
long-term saving, withdrawing it will
deprive your retirement kitty the power
of compounding. Also, at 8.5% tax free,
the EPF is a far better option than other
fixed income investments. Withdraw
from it only if you have exhausted all
other options.
Gangwar in Parliament. We then worked
backwards to calculate the returns.
Even so, there could be a significant margin
of error in our calculations. We have used
an index fund (SBI Nifty Index) as a proxy
for the Nifty and Sensex ETFs in which the
EPFO invests. The fund management charges
of an index fund are higher than those of an
ETF. At the same time, we have not taken into
account the investments in the CPSE and
Bharat-22 ETFs which have yielded returns
much lower than the Nifty. We have also as-
sumed a much higher rate of 8.2% for returns
from the debt portion, even though the actual
returns would have been lower. Besides, as
CITU Vice-president and CBT member A.K.
Padmanabhan points out, the EPFO suffered
losses in bonds of Yes Bank, DHFL, IL&FS and
ADAG group entities during the year.
Please send your feedback to
etwealth@timesgroup.com
 guest column
The Economic Times Wealth April 13-19, 2020 05

This is no time to try

risky financial products
Those who fell for risky, leveraged and overly clever financial products are
suffering, but the temptation is still there, says Dhirendra Kumar.

A
s it happened in 2008-09, a sharp
downward move in the equity
markets brought out all kinds
of problems that were hidden
DHIRENDR A KUMAR
CEO, VALUE RESE ARCH otherwise. A few days ago, I heard
from an acquaintance who lives in the UAE,
how a well-known international bank wiped
money out all his savings. Although the UAE is a

mysteries different jurisdiction, the saver is an Indian

citizen, the underlying product is an Indian
mutual fund and the bank operates in India
too. Therefore, the story might be of interest
to at least those readers who have relatives
Everyone who abroad investing in India. Moreover, the
basic lesson to be drawn from this episode is
self-defines as
just as relevant in India.
a saver rather
This person was approached by the bank
than a trader, with a scheme to invest in an Indian mutual
none of this is fund using a special method which would
worthwhile. We enhance the returns, or so the bank said. The
need to stick to customer fell for the stories and agreed to in-
the basics, to the vest, especially as the mutual fund was a well-
known Indian brand. What the customer did
asset allocation
not understand clearly was that this was a lev-
and the risk
eraged product. The money invested was dou-
level that is ble that of what the customer had put in, with
appropriate for the other half coming as a loan from the bank
our own financial with the customer’s half as the collateral!
situation.
There are many investing
and trading tricks that
give the illusion of working
well. Only when the stresses
become very large, do the
underlying flaws show up.
Naturally, as long as the returns were
positive, the customer was happy. However,
GETTYIMAGES

when the markets crashed, the bank asked

the customer to deposit a large amount
as margin money in order to shore up the
collateral. Since the customer could not
afford to do so at that point, almost the entire
holding was sold off, leading to a near 100%
loss. The customer has hardly understood
what happened exactly but has no recourse
to anything. The bank would obviously be
doing this on an industrial scale and would
be well-protected legally. The matter is
entirely outside the Indian regulatory ambit
in any case.
Can this happen in India? The answer
is that it cannot happen in this exact man-
ner in mutual funds. However, it’s entirely
possible to borrow against investments
(whether stocks or mutual funds) from most
banks and then use that borrowing to invest
more. That would produce the same set of
higher returns but with a much higher risk.
Of course, this kind of leveraged trading is
routine in stocks and is the normal modus
operandi for traders but presumably (hope-
fully) those people know what they are doing
or at least learn quickly enough with their
first round of losses.
Generally speaking, there are many
investing and trading tricks that give the il-
lusion of working well when the markets are
going up or at worst, dropping in a routine
manner. When the stresses become very
large, then the underlying flaws show up.
This is happening—and will happen soon—
in any business where there is too much bor-
rowing. Trading with borrowed money by an
individual is an extremely dangerous vari-
ation of the same theme. Unfortunately, it’s
always some intermediary who leads savers
into this path in order to enhance their own
profits. A tight regulatory system helps but
cannot keep people 100% protected.
The current situation, when there are
violent movements in the markets is just
the kind of time when the temptation to play
some special tricks can easily be provoked
by skilled sales people. Some people, when
they have just lots of money may fall for some
supposedly clever financial products that
can bring bigger profits. However, for every-
one who self-defines as a saver rather than a
trader, none of this is worthwhile. We need to
stick to the basics, to the asset allocation and
the risk level that is appropriate for our own
financial situation.
The Covid pandemic will be a long fight,
personally and financially, and this is no
time to try out risky financial products.
Please send your feedback to
etwealth@timesgroup.com
 review preview
06 The Economic Times Wealth April 13-19, 2020

Don’t go by cheaper valuations NEWS IN BRIEF

When actual earnings start coming through, valuations may not seem cheap.
by Sanket Dhanorkar
Bargain hunters beware. Do not rush into
buy just because valuations are contracting
as share prices fall. While valuations as
indicated by metrics like price-to-earnings
and dividend yield have corrected substan-
tially, relying on such figures alone in the
current scenario may not lead you to the
right decisions.
Take for instance the PE ratio. If purely
using trailing PE, the denominator reflect-
ing earnings growth of trailing 12 months
may no longer be reflective of the earnings
reality amid the unfolding coronavirus-re-
lated economic shocks. The earnings profile
of several businesses will be hit severely in
the coming quarters. In this scenario, the
PE will seem optically low as share prices
have corrected sharply relative to the trail-
ing earnings profile. In a few months, when
actual earnings start coming through,
valuations as seen today may no longer seem
cheap. “Trailing earnings will not be rel-
evant for 2020-21 earnings given the current
pandemic and associated lockdowns. Equity
investors and analysts will look at 2021-22 es-
timated earnings to value companies,” says
Rajeev Thakker, CIO, PPFAS Mutual Fund.
Even PE based on forward earnings will
give a distorted picture. The 1 year forward
earnings growth assumptions will only be
revised with a lag. Any revised estimates
may also not be sanguine given the dif-
ficulty in quantifying the impact of such
Cut-off time for mutual
fund transactions changed
All mutual funds have temporar-
ily changed the cut-off timings
PE multiples of several stocks have contracted for buying and redeeming. The
change will be effective till 17
Lower valuation may be an illusion as earnings may be hit in coming months. April. For liquid and overnight
funds, the cut-off time for getting
Company Current PE 20 Feb PE Price change (%)
the previous day’s NAV has been
Future Retail 5.2 26.2 -80.3 advanced to 12.30 pm from 1.30
pm. For other mutual funds, the
Quess Corp 12.1 30.7 -60.5 cut off time has been changed to
Bharat Forge 13.7 30.2 -54.8 1 pm from 3 pm. To get the same
day’s NAV for redemption, the
Motherson Sumi Systems 12.6 27.4 -54.1 cut-off timing has been advanced
Ashok Leyland 11.3 23.9 -52.7 from 3 pm to 1 pm.
Adani Gas 26.5 52.3 -49.3 Wimbledon insurance
Cummins India 11.5 22.3 -48.1 For the past 17 years, the All-
England Lawn Tennis Club has
Indian Hotels Co 22.2 42.0 -47.2 been paying a premium of $2
million for an insurance policy
Dalmia Bharat 21.0 39.3 -46.6
to guard against losses if the
Wimbledon is cancelled due to a
Adani Enterprises 11.2 20.8 -46.4
pandemic. Now that it has hap-
pened, the club will receive a
Data as on 7 Feb 2020. Compiled by ETIG Database.
payout of $141 million, or nearly
unprecedented dislocation to individual vive the current downturn, the earnings half the amount it expects to lose
businesses. Sankaran Naren, Executive and value will come back soon.” as a result of the cancellation.
Director and CIO, ICICI Prudential Mutual Similarly, experts believe other metrics
Fund, reckons investors should look be- like dividend yield and price to book value SBI cuts interest rates
yond earnings and instead focus on balance may also be compromised. “Dividend yields State Bank of India has cut inter-
sheet quality now. “Earnings profile for on a trailing basis will be as misleading est rates on saving accounts by
next six months is irrelevant. Stick with the as earnings. There will be many compa- 25 bps. With effect from 15 April,
strongest players in their respective sectors nies that will cut dividends,” points out savings accounts will earn 2.75%
based on inherent balance sheet strength.” Thakker. Even the PBV metric may be use- per annum. The bank also cut
Thakker argues, “Given the high uncer- ful only in some asset-heavy cyclicals and MCLR by 35 bps across all tenors.
tainty, in some companies, it may create some financial stocks. For many sectors The one year MCLR comes down
an illusion of value but for most companies such as IT, pharma, FMCG, it may not be of to 7.4% per annum from 7.75%.
which have the capacity to comfortably sur- much use.

Indians lost `1.2 trillion to cyber crime in 2019

Nearly 70% Indians are worried their identities will be stolen, as per a recent NortonLifeLock survey, finds Riju Mehta.

131.2 `1.24 81%

million trillion Indians 4 in10
is the number of cyber crime consumers in India have
is the amount lost in India are alarmed about their
victims in India in 2019, experienced identity
in the past 12 months due privacy, the highest in 10
compared with 350 million theft, with 10%
to cyber crime. countries, with the
worldwide. impacted in the
global average past year.
being 67%.

63% 80% More men are victims of cyber crime

Indians Indians
have been a victim of 63% CYBER CRIME ID THEFT

of the 131 million

cyber crime victims,
cyber crime at some
point in their lives, with
Indians
were impacted do not know what they
66% victimised in
financially. the past year.
will do if their identities
are stolen, even though
44% 33% 84 % 76%
MEN WOMEN MEN WOMEN
70% are worried that
the identities will
be stolen.
CYBER CRIME ID THEFT
Identity
theft higher 41% 22% 81% 73%
among
younger Young Old Young Old
Indians are concerned their sensitive Indians are the most proactive in the world
adults 18-39 yrs 40+ yrs 18-39 yrs 40+ yrs
41% personal information will be sold to third
parties and used without their consent.
86% in looking for better ways to protect their
privacy, compared with 65% globally. Source: 2019 NortonLifeLock Cyber Safety Insights Report. The online survey was con-
ducted by The Harris Poll for NortonLifeLock among 10,063 adults in 10 countries.
 mutual funds
The Economic Times Wealth April 13-19, 2020 07

Should you invest in index

funds or ETFs now?
Betting on low cost index fund is an option for investors, since these funds usually remain fully invested.
by Narendra Nathan

E
xperts say the current market
turmoil is the best time to invest
in equities and the easiest way
to do so is through index funds.
These funds usually remain ful-
ly invested so you don’t have to worry about
what your fund managers will do. Some ac-
tive fund managers are known to panic and
increase cash holdings. In other words, in-
dex investing is the best way to participate
in the expected market rebound.
However, should you go with the ex-
change traded funds (ETFs) or with the
open ended index funds? “ETFs and open
end index funds are made for different set
of investors,” says Jitendra P. S. Solanki,
Sebi-registered investment adviser. Let us
GETTYIMAGES

take a look at what will suit you.

Convenience
If you are a only a mutual fund investor,
it makes sense to restrict yourself to open
ended index funds and keep investing regu-
lar amounts through SIPs. Since ETFs are
Sensex / Nifty ETFs quoting at a premium by 1,000 points at 1 pm. If that day ends with
1,000 point gain, you will get a higher NAV.
listed instruments, only those investors Ignore the counters where the market price is higher than NAV.
who have broking and demat accounts can Total costs
buy or sell them. Fund Index Closing price (`) NAV (`) Premium While low total expense ratio (TER) is
NIFTYEES Nifty 50 11,217.08 9,509.28 17.96% the main advantage of ETFs, open ended
Liquidity AXISNIFTY Nifty 50 1,007.00 908.35 10.86%
index funds also increased competition
There is no liquidity issue with index funds by cutting their TER. The gap between
and you can invest or redeem at the day’s UTISENSETF SENSEX 351.31 317.87 10.52% TERs of ETFs and open ended index funds
NAV by putting in a request. However, BSLNIFTY Nifty 50 105.44 96.07 9.75% is low now. While comparing the expense
several ETFs are not traded frequently in ratios, investors should also consider the
India and therefore, you may get stuck for IBMFNIFTY Nifty 50 96.55 89.56 7.80% incidental costs associated with taking
several days. So, invest only in ETFs that the ETF route. “Don’t ignore the trading
Source: NSE India; Data as on 7 April
have ample liquidity now. costs like brokerages and fixed costs like

Real time vs EOD NAV The cheapest ETFs demat charges while using the ETF route,”
says Mukund Sheshadri, Co-Founder, MS
If you are a market timer, it works better Consider all costs (including brokerages, demat charges, etc) while investing in ETFs. Ventures Financial Planners. However,
with ETFs as you can buy it on intra-day one should note that the brokerage charge
basis at your own decided price. This will be Fund Expense ratio (%) AUM (` cr) is one time and not every year like that
of immense help since the intra-day volatil- Nippon India ETF Nifty BeES 0.05 2,216 of the expense ratio in open ended index
ity is very high now. However, some of this funds. So, if you are a very long term inves-
ICICI Prudential Nifty ETF 0.05 1,373
advantage has vanished in the recent past tor and you have a demat account, then
as some ETFs have started moving away SBI ETF Nifty 50 0.07 64,464 ETF route will work out cheaper for you.
from their respective NAVs owing to vola- SBI ETF Sensex 0.07 23,235
tility. This is visible even amongthe ETFs Tracking error
linked to benchmark indices like Sensex
UTI Nifty Exchange Traded Fund 0.07 16,025 Tracking error refers to the movement of a
and Nifty (see tables). There is no purpose in fund’s NAV with that of the respective in-
Source: Valueresearch; Data as on 7 April
buying these ETFs at a premium. However, dex. Since subscription and redemption to
investors holding on to them can use this
opportunity to exit. Similarly, there are
The cheapest index funds ETFs are restricted to market makers and
they are doing this only in the form of in-
few ETFs quoting at attractive discounts.
Best suited for retail investors who don’t have demat or trading accounts. dex shares at exact proportion, the track-
Expense ratio (%)
Investors should make sure that there is ing error for ETFs will be almost zero.
enough liquidity in the counter, so that they Fund Regular plan Direct plan AUM (` cr) However, it can be big for open ended index
don’t have to sell at a discount later. UTI Nifty Index Fund 0.17 0.10 1,856 funds. “Benchmarking will be a challenge
All investors, who submit request before for small sized open ended index funds. So,
HDFC Index Fund Nifty 50 Plan 0.30 0.10 1,208
cut-off timings, get the end of the day (EOD) their tracking errors are usually higher,”
NAVs in case of open ended index funds. HDFC Index Fund Sensex Plan 0.30 0.10 957 says Abhimanyu Sofat, Head of Research,
This makes intra-day timing difficult and ICICI Prudential Nifty Index Fund 0.45 0.10 565 IIFL Securities.
the recent change in cut off time (from ear-
lier 3 pm to now 1 pm) has aggravated this SBI Nifty Index Fund 0.69 0.29 548
problem. For example, you give a subscrip- Please send your feedback to
Source: Value Research; Data as on 7 April. Sorted on the basis of Exp ratio for regular plans. etwealth@timesgroup.com
tion request if you see the Sensex is down Note: Only schemes with at least `500 crore considered
 insurance
08 The Economic Times Wealth April 13-19, 2020

it might be a good idea to pick it up as a tem-

porary risk cover since it will last a year
and does not cost much. It may prove espe-
cially useful if you are at high risk. “Since
the Covid-19 treatment is currently in gov-
ernment hospitals, where the medical ex-
penses are low or nominal, it will help you
cover the small amounts and incidentals,”
says Prakash.
“Our cover is aimed at tier 2/3 cities
and rural audience,” says Victor Choi,
CEO, True Balance, which has partnered
with ICICI Lombard to bring out the Cov-
id-specific cover through its mobile app.
“It is very convenient for the unbanked,

Should you buy a

illiterate and low-income population that
is not insured. The plan doesn’t require
hospitalisation or provision of bills to
make a claim and the lump sum amount
is dispersed quickly on diagnosis of the

Covid-specific plan?
disease,” adds Choi.
Another advantage is that since most
of these plans provide a lump sum on
diagnosis, the amount can be used as per
one’s discretion. However, if you were to
Opt for it only if you don’t have a basic health plan or require intensive care and isolation, most

GETTYIMAGES
plans would help only in a limited man-
group cover, are short of funds, or at high risk. ner. While some plans provide 50% of the
sum assured for quarantine or a cap on
the number of days, others stipulate the
quarantine or isolation only in govern-
by Riju Mehta in the past month or so from players such Should you opt for these insurance plans? ment or military hospitals, not in private
as Star Health & Allied Insurance, Bharti “If you already have a basic health plan, nursing homes or at home.
“If you were taking treatment in a

G
iven the rate at which Covid-19 AXA Health Insurance, ICICI Lombard, you don’t need to buy these because your
is permeating the country and Reliance General Insurance and Digit existing plan will cover the treatement private hospital and required ventilator
considering the impact of lock- Health Care Plus. These are fixed benefit and hospitalisation of all diseases, includ- support in an ICU for 15-20 days, even a
down on the economy, many covers, which offer a lump sum on the ing Covid-19,” says Deepak Mendiratta, nominal cost of `30,000 per day would eas-
people have been hit by the dou- ily escalate to around `6 lakh or more,”
diagnosis of the disease and end after the Managing Director, PlanCover.com, an
says Mendiratta. In such a case, most of
ble whammy of disease and dearth of funds. amount has been paid. The sum assured insurance broking company. Agrees Dr S.
the expenses would have to be met from
Combine this with the low penetration of varies from `21,000 to `2 lakh, annual Prakash, MD, Star Health Insurance: “A
your own pocket. A `5 lakh basic indemni-
health insurance in India and it has created premiums are typically low, ranging from basic indemnity plan will cover all Covid-
ty health plan would serve a much better
a gap that insurers are rushing to plug with `150 to nearly `3,900, and there’s a variety related treatements, so you need not go for purpose here.
niche health products. of benefits and exclusions for each, ranging this specific plan.” For a first-time purchase of an insur-
Spurred by the insurance regulator to from quarantine coverage and per day cash Are these plans required at all then? If ance plan, a good option would be the
come up with Covid-specific products, provision to no pre-medical check-ups or you have no insurance, be it personal or basic Arogya Sanjeevani cover that all
several such plans have flooded the market consideration of overseas travel history. group cover, and are running low on funds, health insurers are mandated to provide
as per the directive of the Insurance
What do Covid-related health covers offer? Regulatory and Development Authority
of India (IRDAI). ManipalCigna Health
INSURERS OFFERING REQUIREMENTS ANNUAL SHOULD YOU Insurance, Bajaj Allianz General Insur-
COVER OTHER BENEFITS EXCLUSIONS/ INCLUSIONS
COVID COVERS TO MAKE CLAIM PREMIUM OPT FOR IT?
ance, HDFC Ergo, SBI General Insurance
`500-1,000 per Covid+ diagnosis No waiting for lump and Digit Health Care Plus are among
Bharti AXA-Airtel `25,000 Only if you have no the players that have already introduced
day cash for or isolation in sum; ICU cash after 24-
Payments Bank lump `499 insurance and are at
max 10 days; govt/ military hour hospitalisation; these plans. All these covers, much like
(Fixed benefit) sum high risk.
double for ICU hospital only for APB customers any other basic indemnity plan, cover
Covid+ diagnosis Only if you are in a Covid-19 in addition to various other
Health diseases and illnesses.
`25,000 by govt 14-day waiting; tier 2/3 city, have a
ICICI Lombard-True assistance, tele- “Our Arogya Sanjeevani coverage
lump accredited test; no overseas travel history `159 low income and no
Balance (Fixed benefit) consultation, of Covid-19 is no different from that for
sum hospitalisation/ required; 18-75 years cover.
ambulance aid
bill needed any other disease and we also honour
`21,000/ Covid+ diagnosis qurantine claims provided they are in an
Star Health and Allied Dependent kids 16-day waiting; 18-65 May not be useful in authorised hospital,” says Prasun Sikdar,
`42,000 by govt
Insurance can be covered years; no travel history `459 & `918 self-isolation or ICU/ MD and CEO, ManipalCigna Health
lump accredited test &
(Fixed benefit) with parent needed ventilator support. Insurance. The sum assured ranges
sum hospitalisation
from `1-5 lakh and the premium varies
15-day waiting period;
`25,000- Covid + diagnosis If you have no for individual and family floater plans.
Multiple family 50% of cover for
Digit Health Care Plus 2 lakh from National personal or group “The niche health products cannot be a
members can quarantine in govt/ `299-2,027
(Fixed benefit) lump Institute of cover. It can help substitute for a basic health plan. If the
be covered military hospital; travel
sum Virology, Pune cover ICU charges. sum assured of your plan is not enough,
history needed
say, only `1-2 lakh, only then should you
Only for YES Bank opt for these at present,” adds Sikdar.
`50,000/ Covers customers; 15-day `1,947 for If you have no cover.
Reliance General In the final analysis, purchase the fixed
`1 lakh quarantine waiting period; 50% `50,000 cover; It can help cover
Insurance and YES Covid + diagnosis benefit plans only if you have no or very
lump period of 15 of sum assured for `3,894 for `1 ICU and quarantine
Bank (Fixed benefit) little insurance, are at a high risk of catch-
sum days, job loss quarantine; no travel lakh cover charges.
history needed ing the disease, or have no access to funds at
Arogya Sanjeevani `5,000-6,000 Useful if you are the moment.
Covers all Diagnosis
plans by ManipalCigna, Caps and limitations for `5 lakh cover buying your first plan
`1-5 lakh diseases, and 24-hour
Bajaj Allianz, Go Digit vary for 30-year-old as these cover other
including Covid hospitalisation Please send your feedback to
(Basic indemnity) (may vary) illnesses as well.
etwealth@timesgroup.com
Note: All basic indemnity health plans will cover Covid-19. All benefits and exclusions have not been listed.

Cost of going to work
The hidden costs of having a job can skew your budget, says Devashish Chakravarty
T
o earn your salary, you put in
hard hours at work and compro-
mise your peace of mind. But
have you ever considered that
going to work is also a financial
drain? The current lockdown would have
reduced your expenses which will help
you figure out what it costs you to hold
down your current job. Thereafter, you
may find the motivation to ask for a pay
raise. Likewise, when you consider a new
job which appears to give you a higher pay-
check, identify the hidden costs that could
derail your dreams of saving for your new
house. Here’s what you should look at.
Away from home
Do you have a job in a city or country away
from family and home? You are running two
households while spending money to join
your family often. Renting an apartment,
paying a deposit, acquiring furniture and
appliances, an additional personal vehicle
and regular household expenses may take
away 30-50% of your pre-tax salary. Add to
that inter-city/ country travel costs includ-
ing airport commute and peak ticket prices
when you book at short notice. Suddenly you
have no money left at the end of the month.
Reconsider the costs and benefits of work-
ing and staying in the same location.
Commute
What is the real cost of your commute? You
may spend money on the metro, bus or a cab
and that is simple to calculate. However, if
you have your own car, calculate the total
cost of ownership. Did you have to buy a
more expensive vehicle commensurate with
your status? To your monthly EMI, add fuel
costs, car wash, insurance, taxes, mainte-
nance, repairs and the driver’s salary. The
bill could go up to 10% of your income. To
bring down costs, revalue job opportunities
closer to home, consider moving closer to
work, explore working from home for a few
days a month, use flexi-time to commute in
off-peak hours, opt for a bus/ metro, try car-
pooling and consider a fuel efficient car.
Fashion
Fashion is the last of the direct costs of a job.
You need good clothes to go to work. Check
out your wardrobe. Do you use most of your
work clothes for personal wear? Now add
the cost of work shoes, accessories and your
expensive cell phone. Add the cost of dry-
cleaning, stitching/ re-fitting and costs of
personal care, including salon visits.
Food
Lifestyle changes comprise a big chunk of
the indirect costs of going to work. Food is
the largest expense here as your choices
change in professional and personal spaces.
At office, you may have a tendency of order-
ing food and coffee or heading out for a meal
with or without colleagues. While this is
easier to track and control, also consider the
number of times you have ordered food at
home or purchased a frozen or pre-cooked
meal because you were too tired to cook. you
are more likely to buy groceries from a store
that’s convenient than one that’s cheaper.
Take home-cooked meals to work, shop and
pre-cook on weekends to reduce costs.
Dependants
Your choice of work impacts children, el-
ders and pets at home thus shrinking your
budget. With two working parents, child-
care become a major cost via play-school, at
home maid, unnecessary tuitions or after
school programs to keep them safe and busy,
and a summer camp to occupy them away
from home. Elders may require paid care-
givers or a driver and car. Similarly, pets
may require care or meals in your absence
or when you are traveling. Thus, a lesser
paying job that has remote working or flexi-
timing may offer surprising cost benefits.
Wellness
Responsibilities and deadlines at work are
possibly the biggest contributors to your
daily stress. It means you will spend more
career strategy
The Economic Times Wealth April 13-19, 2020 09
COST OF
WFH
UTILITIES
1 When you Work From
Home, what you consume comes
from your pocket. An entire day
at home with the air-conditioning
and lights on adds to your
electricity bill. Other expenses
may include your personal
computer, printer, office supplies
and coffee and food replacing
free coffee machines and
GETTYIMAGES
subsidised office canteens.
INSURANCE
2 If you are a contract
worker on WFH, your biggest
sensible expenses are health and
life insurance otherwise covered
by an employment contract
through ESIC, LIC gratuity or
private schemes. If you are
a desk worker, your health
deteriorates and medical costs
on consuming discretionary de-stressing increase as activity levels drop
or entertainment activities like going out, further without the mandatory
shopping, sports, hobbies, travel or meeting commute to work.
people. Also, your health is impacted when
you commute in a polluted city, work long
ISOLATION
hours or in an unhealthy environment.
Your lifespan, life quality and wellness re-
3 The biggest intangible
costs are on relationships and
duce, thereby increasing your health costs.
sanity as your social skills take
Healthy eating, regular exercise and medi-
a hit. A WFH career isolates you
tation are your best bets here.
from the contact and connect
that an office provides. It can
Upskilling lead to a creeping depression and
You found your first job because you pos-
loneliness if you seldom venture
sessed the required graduation certificate.
outside or meet people in person.
While past education is a sunk cost that
Finally, fewer professional
contributes to kick-starting your career,
relationships lead to a drop in
your subsequent jobs are linked to your
opportunities and income.
experience and skills. In your industry or
function, you may find opportunities to
UNCERTAINTY
study and acquire skills that will help you
progress at work. Thus, upskilling is a cost
4 If you are at office,
you bear especially if you need a certificate. working on a project or in
To defray this cost, negotiate training and a team, you are exposed to
upskilling with your current employer or constant professional interaction
when you are changing jobs. in the environment which gives
you valuable information on the
Taxes state of your company, manager’s
To paraphrase Benjamin Franklin—noth- priorities and office politics.
ing is certain but death and taxes. Though Without that, WFH reduces your
you are aware of taxes and its impact on control over career outcomes and
your take home salary, your choices make thus increases uncertainty and
a huge difference. Firstly, restructure your stress.
salary with your employer to minimise tax
outflow, keep track of changing tax slabs SAFETY
and surcharges and plan out your annual 5 WFH increases health
investments and expenses in advance. and safety costs. Your home is
Secondly, consider working in a contract unlikely to be equipped with
role where you can expense some costs. a professional table and chair
Finally, consider job opportunities in low or resulting in chronic back pain
zero-tax countries where your savings can from poor ergonomics. Also,
be substantial if you can budget for a low your breaks may be fewer,
cost of living. reducing overall movement and
exacerbating medical issues.
Finally, with additional power
cables, your workspace becomes
THE WRITER IS FOUNDER
a hazardous zone for children
AND CEO AT QUEZX.COM
and pets.
AND HEADHONCHOS.COM.
 stocks
10 The Economic Times Wealth April 13-19, 2020

Buyback offer alone should not

be reason to invest in a share
Beware of companies that announce buybacks to create a perception of value and arrest fall in share prices.

Buybacks have picked

up since 1 March
More firms expected to launch buyback
offers as valuations have declined.

OFFER
OPENING
COMPANY AMOUNT
DATE
(`CR)

Supreme
Petrochem
19 Mar 2020 63

Sun Pharma 26 Mar 2020 1,700

Emami 27 Mar 2020 192

Motilal Oswal
Financial 1 Apr 2020 150
Services

Ramkrishna
Forgings
3 Apr 2020 40

Dalmia Bharat 3 Apr 2020 500

Sterlite
Technologies
7 Apr 2020 145

Delta Corp 8 Apr 2020 125

GETTYIMAGES Source: Prime Database

by Sanket Dhanorkar companies have corrected more than 30% shareholders through buybacks. Its list of Even if a hefty premium is offered, the
in the current sell-off. As many as 61 stocks potential candidates for buybacks figure prevailing valuation may offer a bigger

W
ith sharp correction in
share prices pulling down
valuations, companies are
increasingly looking at
buying back shares. What
do the buyback offers mean for investors?
Are buyback candidates good long term
bets? Should shareholders cash in?
Since the beginning of March, 13 compa-
nies have approved share buybacks. Sun
Pharma, Emami, Motilal Oswal Financial
Services and Delta Corp are among the
marquee names that launched buyback
offers. According to Prime Database, buy-
back offers yet to open include Granules
India, Kalpataru Power Transmission,
NIIT Technologies and more. Some compa-
nies are either looking to cushion falling
prices or promoters are using this window
to bolster own holdings at cheap prices.
A company or promoter buying back
shares is usually a good sign as it indicates
their confidence in the long term potential
of the business. It also signals their percep-
tion that the shares are trading below fair
value. Buybacks are seen favourably by
investors as they reduce existing supply of
shares (equity capital is extinguished to
the extent of share buyback) and improve
the return on equity (ROE) profile.
Of the BSE 200 companies, stocks of 100
have plunged more than 40%. At such pric-
es, promoters and company managements
see a lot of value in own shares.
However, not all companies can buy back
in the current scenario. The ongoing pan-
demic is wreaking havoc on companies’
cash flows. Dislocations in businesses
are likely to persist for some time. In this
environment, preserving liquidity is criti-
cal for businesses starved of cash flows.
“Liquidity on the balance sheet will be of
paramount importance in the short term
due to the lockdown and consequent col-
lapse in revenues. While deciding on buy-
backs, managements will have to conserve
cash,” says a Motilal Oswal Securities
report. Only cash-rich companies with sur-
plus liquidity will be in a position to con-
sider buybacks. These firms will also not
be in a hurry to invest in capex as demand
remains subdued and capacity utilisation
at existing plants dips further.
Investors looking for bargains can con-
sider stocks where companies and promot-
ers are buying own shares at this point.
Companies with high net cash position and
which have seen share price erode sharply
are prime candidates for buybacks. Motilal
Oswal Securities sees a higher probability
of companies in consumer, technology and
automobile sectors returning cash to their
prominent names like ITC, Eicher Motors,
Maruti Suzuki, Bharti Infratel, Bajaj Auto,
M&M, HCL Tech and ACC, among others.
However, a buyback offer alone should
not lure investors into buying a company’s
shares. Invest if you genuinely believe
in the future prospects of the company
and find current valuations attractive.
“Beware of companies that do token buy-
backs just to shore up market confidence
or create a perception of value to arrest
fall in share prices,” warns Vikas Gupta,
Chief Investment Strategist, OmniScience
Capital. “Company fundamentals have
to support the buyback. Companies giv-
ing away cash without adequate liquidity
buffers should be avoided,” he adds. Kunj
Bansal, Partner and CIO, Acepro Advisors,
says, “At times promoters use buybacks to
pump up own shareholding at expense of
company money. If company financials are
weak, buybacks won’t be able to support the
share price.”
How should existing shareholders of
companies making buyback offers re-
spond? Many of these companies have an-
nounced buybacks at a sizeable premium
to current prices. However, investors must
weigh these offers carefully giving due
consideration to their financial needs and
perceptions about the company’s potential.
risk-reward payoff. “If you are comfort-
able remaining invested for another 3-5
years, ignore the offer. But if you feel the
premium covers your perceived valua-
tion for the firm, it makes sense to tender
shares,” Bansal suggests. Gupta offers a
different perspective. “If you are positive
on the company’s prospects and believe
it is undervalued, take the offer and buy
back the shares in the secondary market at
a reduced price post buyback,” he says.
Share buybacks were common in the
past three financial years owing to a fa-
vourable tax policy. However, buybacks
have reduced since last year when the
government imposed a share buyback tax
of 20% on listed companies. Consequently,
investors no longer have to pay any tax on
capital gains on buyback.
In 2019-20, 55 companies bought back
shares worth `20,662 crore. In the preced-
ing financial year, 63 companies bought
back shares amounting to `55,587 crore.
Companies are now lobbying the govern-
ment to abolish the share buyback tax. If
that happens and markets remain sub-
dued, buyback offers are likely to multiply.
Please send your feedback to
etwealth@timesgroup.com
 family finance
The Economic Times Wealth April 13-19, 2020 11

Main goals are MANISH KUMAR, 38 YEARS, SALARIED, AHMEDABAD

How to invest for goals

within reach
INVESTMENT
FUTURE COST (`) / RESOURCES
GOAL NEEDED
TIME TO ACHIEVE USED
(`/MONTH)

Emergency fund 4.9 lakh / 1 yr Cash -

Ahmedabad-based Kumar will have to stagger some
of his goals till an increase in his income. Child’s education 41.5 lakh / 15 yrs - 8,000

by Riju Mehta Child’s wedding 53 lakh / 22 yrs - 4,000*

Portfolio

M
anish Kumar, 38, lives
Retirement 3.6 crore / 22 yrs EPF 20,000
with his homemaker wife,
CURRENT VALUE
three-year-old child and ASSET (`)
mother, in his own house, Investible surplus
28,000
in Ahmedabad. He gets needed
Real estate 80 lakh
a monthly salary of `1.1 lakh, and his
portfolio includes property worth `80 Due to lack of surplus, investment for this goal will begin after a rise in income.
Cash 4 lakh Annual return assumed to be 12% for equity, 7% for debt funds. Inflation assumed to be 7%.
lakh, cash of `4 lakh, and debt worth `20
lakh in the form of EPF and insurance
surrender value. He also has a home loan Debt
and car loan for which he is paying EMIs
of `53,542. His goals include building an
EPF 15 lakh
Insurance portfolio
emergency corpus, saving for his chil-
dren’s (including another child in future) EXISTING SUGGESTED
Insurance 5 lakh EXISTING
education and weddings, and retirement. MONTHLY MONTHLY
INSURANCE COVER SUGGESTIONS
Financial Planner Pankaaj Maalde PREMIUM PREMIUM
(`)
suggests that before starting investment, (`) (`)
Total 1.04 crore
Kumar repay his car loan with a portion of
his cash and insurance surrender value. Life insurance
He should also move to a lower interest LIABILITIES CURRENT VALUE (`)
rate for his home loan to bring down the
EMI to `40,220. He can then build a contin- Loans 52.44 lakh Term plan - - Buy `1.5 crore plan 1,333
gency corpus of `4.9 lakh, which is equal
to six months’ expenses. He can allocate
Total liability 52.44 lakh Traditional
6 lakh 3,000 Surrender both -
his cash of `3 lakh and start saving for plans (2)
the remaining `1.9 lakh from his surplus Net worth `51.56 lakh
before investing for other goals. This will Ulips - - - -
take about a year and the entire amount
should be put in a liquid fund.
To fund his child’s education in 15 TOTAL 6 lakh - `1.5 crore 1,333
years, Kumar has estimated a need `41.5 Cash flow
lakh. For this, he can start an SIP of `8,000 Health insurance
in a diversified equity fund. For the child’s EXISTING SUGGESTED
wedding in 22 years, Kumar will need `53 (`) (`)

lakh and will have to start an SIP of `4,000 Employer’s 2 lakh - - -

in a diversified equity fund. However, due Income 1.1 lakh 1.1 lakh
to lack of surplus, he will have to put off Buy `10 lakh family
Outflow Own - - 1,167
investment till a rise in his income. For floater plan
his retirement in 22 years, he will need
`3.6 crore. He will have to allocate his EPF Household 33,800 33,800
expenses TOTAL 2 lakh - `12 lakh 1,167
corpus of `15 lakh for this goal. He will
also have to start an SIP of `15,000 in a di- Child’s 5,000 5,000 Critical illness
versified equity fund, and invest `5,000 in education Buy `25 lakh accident
& accident - - 333
the NPS. Kumar also wants to start saving disability plan
Loan EMI 53,542 40,220 disability
for the education and wedding of another
child, for which he will need `54 lakh and
Insurance 3,000 2,833 TOTAL - - `25 lakh 333
`70 lakh, when the child is 18 and 25 years, premium
respectively. However, due to lack of sur-
plus, he can invest after a rise in income. Investment - 28,000 Insurance cost - 3,000 - 2,833
For life insurance, Kumar has two
traditional plans worth `6 lakh. Maalde Total
outflow 95,342 1.09 lakh Premiums are indicative and could vary for different insurers.
advises him to surrender these and buy
a term plan of `1.5 crore, which will cost
Surplus 14,658 147
him `1,333 a month. For health insurance,
he has a `2 lakh plan from his employer
Looking for a professional to analyse your investment
and Maalde suggests he buy an independ-
ent family floater plan of `10 lakh, which
Write to us portfolio? Write to us at etwealth@timesgroup.com with
will cost him `1,167 a month. He should
FINANCIAL PLAN BY for expert ‘Family Finances’ as the subject. Our experts will study
your portfolio and offer objective advice on where and
PANKAAJ MAALDE
also buy an accident disability plan of `25
CERTIFIED FINANCIAL PLANNER advice how much you need to invest to reach your goals.
lakh for `333 a month.
 learn & keep
12 The Economic Times Wealth April 13-19, 2020

3 How much of your current income

How much goes towards servicing loans?
A 30-50% B More than 50%
6 If the market downturn continues,

risk
C 10-30% D 0-10%
how long will you hold on to your
portfolio before cashing in?
4 How soon do you think you will start A Another 6 months B At least a year
dipping into your investments?
C A month D Another 3 months
A Not for another 10 years B Within next 3 years
C In 3-7 years D In 8-10 years
7 Assuming you have some investible
surplus now, how would you be
1 How old 5 What will you do if during the market willing to invest?
are you? correction, one of your investments

can you
A Wait for market to recover 20% before investing a
A Under 35
lost 30% of its value within weeks? single rupee

B 35-44
A Sell the investment so you will not have to worry B Invest in stock markets? No, thanks… I am out!
about further decline Deploy some money in a staggered manner even if

tolerate?
C
C 45-54
B Buy more of the same, because it looks even better markets dip further
D 55 or above at current prices than when you bought it D I don’t mind putting in large chunk of the surplus
C Hold on to it and wait for it to bounce back right away!

The sharp decline in the stock market would have 2 What is the nature
given you a fair idea about how much volatility you
of your income? 8 Given below are the likely best-case and worst-case annual returns of four
A Self-employed with hypothetical investments. Which outcome is most acceptable to you?
can tolerate in your portfolio. Sanket Dhanorkar steady cash flow Average annual returns Best-case annual returns Worst-case annual returns
presents a quiz to help you assess your risk appetite. B Salaried employee with A 7.5% 12% -5%
established firm
C Self-employed with
B 9% 18% -12%
irregular cash flow C 12% 25% -20%
D Salaried employee with
D 15% 40% -35%
startup

SCORING MATRIX YOUR RISK PROFILE & OPTIMUM ASSET MIX

ANSWER OPTION
IDEAL ASSET ALLOCATION
RISK SCORE AND
QUESTION INVESTOR RISK PROFILE
NUMBER A B C D YOUR SCORE EQUITIES FIXED INCOME/DEBT GOLD

1 4 3 2 1
Below 20
2 3 4 1 2 CONSERVATIVE 10-25% 60-70% 15-20%
3 2 1 3 4
4 4 1 2 3 20-25
5 MODERATE 40-60% 30-45% 10-15%
1 3 2 –
6 3 4 1 2
7 2 1 3 4 Above 25 5-
AGGRESSIVE 60-75% 20-30% 10%
8 1 2 3 4
ADD INDIVIDUAL Note: Make sure you adhere to this risk profile even when markets go on an extended rally. Only time you need to
FINAL SCORE SCORES HERE reassess the risk profile is if your personal circumstances change owing to any life events (marriage, birth of child,
separation) or changes to income profile (large inheritance, job loss) or if goals are on the horizon.
 financial planning
14 The Economic Times Wealth April 13-19, 2020
How to navigate tough times
Be careful with your money in these uncertain times and you will be fine, says Uma Shashikant.
T
he palms are worn out from
cleaning and scrubbing. Hand
cream was not on the shopping
list. Clothes have to be folded;
cooking never seems to end; and
one must not crib but be grateful for our rela-
tive privilege. What happens when all this
ends? Nope, all those predictions are wrong.
No one can tell.
We are all spending a disproportionate
UMA SHASHIK ANT
IS CHAIRPER SON, CENTRE amount of time trying to figure how the
FOR INVES TMENT world will be after this corona saga. Some
EDUC ATION AND LE ARNING romanticise work from home; some fear the
deepest recession; some imagine complete
government control of our lives; and some
like to see the end of flap validation and
return to local community based living. We
just don’t know.
We love living in the tomorrow. The idea
that there is a better place to go to, and that
Read all the somehow it will all be different, and nicer.
So we imagine we will holiday after retire-
predictions for the
ment; get fit some day in the future; and
future with a smile.
begin saving and retire our debts in that
Nod calmly at those
bright tomorrow. Our resolutions for our
who tell you that they
post covid-19 world are quite similar. They
saw it all coming.
help us cope, deny, forget and escape current
Discount extreme realities.
theories of optimism So the world won’t change? Of course it
and pessimism. will. Nothing in recent memory has impact-
ed the entire world like this. Every crisis
has created something new, nice, big, awe
inspiring, and enabling us to leap ahead.
Such is the power of human innovation.
But that path isn’t linear. Not is it amenable
to being identified as it happens. We won’t
GETTY IMAGES
even connect the dots while it all happens.
Then one day, we will use the powerful
mix of hindsight and nostalgia and weave
that story. A story that will fit into events
we choose to consider. We will all tell it to
anyone who cares to listen. It will be the big
story of our lifetime. Except that we don’t
know it now. However hard we try our hand
at figuring it out, we will fail.
Which is why it makes sense to drop all
those predictions and worthless crystal gaz-
ing, and accept with utmost humility that
the most beautiful thing about the future is
that it is unknown. And then we get to the
list of to do, for here and now, as we navigate
these tough times.
First, don’t lose sight of the cash. Keep
money handy, and spend very carefully. Do
not deny the possibility of losing the job, or
being furloughed briefly. Keep the expenses
at the minimum as if it is an emergency.
Conserve the bank balance. For as long as
needed.
Second, prepare to become redundant
or underpaid. When no one is producing
goods or services, jobs are next on the line.
Prepare mentally for a period of possible
unemployment. Consider skills to acquire;
plan to keep cool and collected; take help to
remain socially and mentally supported. Do
not despair or deny.
Third, shun debt like a disease. Do not
borrow, even from friends and relatives. Do
not use that credit card if you can. Pay it in
full always if you do. Switch to the debit card
until this crisis blows over. If you think you
will default on existing loans, seek help and
counsel. Earlier the better.
Four, make a mental list of assets you can
liquidate if needed, even if it is at a loss and a
lower price. It could be your gold, the property
you bought as investment, your equity or fund
holdings, or those works of art. Know what is
the pecking order of access if you need money.
Don’t worry you can buy them all back when
times are good. But you should know what you
will give up. No, don’t take loan against assets.
Five, be willing to trade off some long term
for the short term. You kept that money aside
for retirement. You told yourself you won’t
touch it. But if you are faced with loss of income
and have to access it, do that instead of borrow-
ing, or selling something cheap, or allowing
credit card ever to accumulate. Be willing to
trade some goals for the other.
Six, do not fall for traps and tricks that play
on the crisis. Snake oil sellers will tell you that
it is the best time to buy property cheap. Or that
shares are trading much lower. Or that you
must buy like one Mr. Buffet does, when there
is blood on the street. Don’t trust these stories.
This is not the time to speculate or gamble.
Seven, keep your eyes and ears open to
new opportunities to work and do something
in addition to what you are already doing. A
crisis is a time to figure what is newly needed
in the changed environment and how you can
plug your skills in. No one knew that people
who wrote codes will be sought after once the
Y2K and tech meltdown crises ended; no one
thought that delivery boys and warehouse op-
erators will thrive in the online retail boom. If
you only focused on what you currently do, you
will miss the new that will emerge as the crisis
dies down. Fight the fire and protect yourself,
but don’t miss the shoots that will emerge from
the burnt forest floor.
Eight, keep questioning your purpose and
your contribution. Not just during this crisis
or after. Your relevance to the world around
you is tightly woven into what you bring to the
table. Be sure you are solving problems, saving
resources, enhancing efficiency, and making
a difference. In as many little ways as you can.
Don’t just sit there and gossip, get things done.
Nine, don’t assume that everyone will be-
come a changed version of their previous selves
once this crisis is over. People forget and slip
back. Events that are big today fade into memo-
ries. We return to the old because we like the
comfort of what was familiar. So don’t expect
the whole world to become a virtuous place and
a new haven.
Read all the predictions for the future with
a smile. Nod calmly at those who tell you that
they saw it all coming. Discount extreme theo-
ries of optimism and pessimism. Keep focus on
the present, preserve yourself and your house-
hold, and handle that money you have, very
very carefully.
Please send your feedback to
etwealth@timesgroup.com
 financial planning
The Economic Times Wealth April 13-19, 2020 15

Taking control of finances PAPER WORK

:: Taking stock of finances
Avoid risky products and decisions that do not align with your financial goals. We are living in unprecedented
times. As the situation arising of the
global pandemic worsens, staying at
home remains the best option.
While many investors have already
adapted themselves to the online
way of working with their finances,
it is about time that those who
haven’t, make a start right away.

Investments in mutual funds

Every mutual fund house allows
investors to view their holdings
and carry out transactions
though their website. KYC is mandatory
for investments in mutual funds. If the
investor already invests in mutual funds,
then investments can be made in any
other mutual fund on the basis of this
KYC compliance.

Insurance policies
An e-insurance account allows

GETTY IMAGES
policyholders to manage all
their insurance policies online.
One needs to open an e-insurance
account by filling up an account opening
form online, using Aadhaar Paperless

Sharmishtha is an architect. She
had been running a private firm
with her husband for a long time,
until he unexpectedly passed
away a year ago. Now, she intends
to continue her practice in order
to support herself and her 9-year-
old son. Various advisers and
managers have approached her,
offering their services to manage
her money. However, she wants to
know a few things herself before
she can trust someone else. While
her husband mostly took money
decisions on his own, he had kept
her in the loop on the advice of
their chrtered accountant. How
should Sharmishtha manage her
affairs and take control of the
situation?
smart things to know
S
harmishtha should begin with
whatever information she
already has. Since there is an
accountant involved, he would
have the personal balance
sheets of her as well as her deceased hus-
band. Sharmishtha should first ensure
that she is aware of the complete list of
assets, and their ownership pattern and
nominations. She should then document
her own strategy for managing the
assets. She needs to get a sense of four
critical elements.
First is the income component. She
should start by assessing how her income
streams are likely to be, and how she will
make the revenue grow. She should align
her willingness to continue work with
her need for income for the next 20 years.
If she thinks she will reduce her practice,
she needs to be sure that the income from
investments and assets augments the
reduced income.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
3-month moratorium on loans by RBI
Second, Sharmishtha should make a
budget of her expenses. The key expenses
required to run the practice, her house-
hold and any other expenses she needs
to take care of. She needs to be sure that
the expense and income is well matched,
leaving her with a surplus to take care of
investments and any other uncertainty.
Third, she needs to list the liabilities, like
outstanding loans, insurance premium,
interest payments and such charges.
She then has to see how her assets and
her income would take care of the li-
abilities and expenses. Once she has this
strategic picture, she may be able to deal
with advisers and decide what she needs
and how it would work for her. Rather
than looking at financial products,
Sharmishtha should begin with a strate-
gic view. This will help her avoid unnec-
essary insurance, unduly risky products
and financial decisions that do not align
with her financial goals.
Offline e-KYC. Proof of identity, proof
of address and proof of date of birth
need to be uploaded. Once the account
is created, insurance policies can be
converted into electronic form using the
policy conversion form.
Bank account
One can carry out most of the
bank transactions by using the
internet banking facility or
mobile app. It is important to update
your mobile number and email id
with the bank in order to recieve OTP
for online transactions. Mobile apps
like BHIM allow account holders to
map their bank account and carry out
payments and transfers using it.
Investments in shares
Depository Participants
(DP) provide online
facilities for demat account
holders to view, operate and carry out
transactions in their holdings online. If
any trades have been carried out by the
investor, a message about the same is
sent on the registered mobile number
and email id of the investor.

2 4
1
Three months
moratorium on
:: Points to note
This deferment  Mutual fund R&T agents also provide
loans by RBI It includes all Interest is Borrower will have will not result in online access to investors to view
means that loans including not waived to pay additional negative impact mutual fund investments for fund

5
borrowers can

3
home loan, off and will interest for on credit score houses serviced by them.
skip their monthly personal loans, continue three months by for individuals  Existing physical policy documents
instalments which education loan, to accrue either increasing or credit are not required to be submitted
are due from auto loan, working on the the amount per downgrade along with the policy conversion form.
1 March 2020 to capital loan, credit outstanding instalment or number or default for
31 May 2020. card dues etc. amount. of instalments. corporates.
 investing
16 The Economic Times Wealth April 13-19, 2020
Brace for interest rate volatility
Concerns over rising fiscal deficit are likely to impact interest rates and affect investors across asset classes.
by Sameer Bhardwaj
T
he Indian economy has been
facing cyclical and structural
issues for some time. Now the
Covid pandemic has created
new challenges. While the
government is employing fiscal and mon-
etary measures to contain the epidemic,
given the government’s already strained
finances,these are likely to create volatil-
ity in interest rates.
Experts believe there is a likelihood
of a serious revenue-expenditure mis-
match. While revenues are unlikely to
pick up due to the nationwide shutdown
that has affected trade and commerce,
expenditure is likely to jump due to the
additional spending of `1.7 lakh crore to
help low-income households. Credit mar-
ket expert Fitch Solutions expects India’s
fiscal deficit to jump to 6.2% of GDP in
2020-21, compared to the budget estimate
of 3.5%. Lakshmi Iyer, Chief Investment
Officer (Debt) & Head Products, Kotak
Mahindra Asset Management Company,
says, “Given the likelihood of a dip in
revenues as a fallout of the lockdown,
there is a high chance that state and cen-
tral finances will be stretched. In these
uncertain times, the situation may only
aggravate. Demand-side levers – FPIs,
mutual funds, insurance companies are
also sporadic in nature. ”
From the monetary policy perspective,
the RBI is trying to support the economy
through a series of rate cuts. In the last
20 months the RBI has reduced its repo
rate (the rate at which it lends money to
commercial banks) by a cumulative 210
basis points from 6.5% to 4.4%. The 10-
year yield fell to 5.9% (intraday) after the
75 basis points repo rate cut in the last
week of March, but the fiscal concerns
reversed its downward movement.
The apprehensions of increased gov-
ernment borrowings are contributing
to the upward movement of bond yields.
Santosh Kumar Singh, Senior VP - Head
of Research at Motilal Oswal AMC says,
“Although 1-year bond yields are falling
regularly with the repo cut, 10 -year yield
has remained anchored to around 6-6.5%.
The short-term rates are expected to fall
further but the long-term rates may re-
main in the given range due to increased
FPI selling and expectations of fiscal
expansion.”
There are concerns regarding the
funding of government expenditure.
The government plans to raise `4.88 lakh
crore in the first half of 2020-21, which is
62.56% of its estimated gross borrowings
of ` 7.8 lakh crore. The increased supply
of government securities is expected to
push up bond yields. Bond prices and
yields move in opposite directions and
prices of the previously issued bonds
react when the new bonds are issued at a
Bond yields rising due to
fiscal deficit concerns
10-yr yield 1-yr average
7.354
7.6
7.4
7.2
6.41
7
6.67
6.8
6.6
6.4
6.2
6
5 April 2019 5 April 2020
rates, whereas on the other hand, RBI
measures like repo rate cut, long term
repo operations (LTRO), and removal of
FPI ownership limits in certain govern-
ment securities are aimed at soothing
long term interest rates. The interplay
of these opposite forces is likely to create
uncertainty in the movement of interest
rates.
Investments in short term
or low duration debt funds
GETTYIMAGES
will prove effective as
they are less prone to the
changes in interest rates.
The govt’s expenditure is way more Such volatility can complicate the
than the revenue earned economic growth prospects by affecting
both consumption and investment. There
` lakh crore are implications for the equity markets
246.5
due to the impact of interest rates on
April 2018 to Feb 2019 April 2019 to Feb 2020 the equity risk premiums. The equity
218.9
risk premium is the difference between
167.8 expected returns from the equity mar-
142.9 169.2 kets and risk-free rate. Volatility in the
government bond yields which is used as
111.5 a proxy for risk-free rate will make such
133.7
risk premiums erratic. Moreover, re-
109.4 82.1 85.5 turns of long duration debt funds and the
NPS scheme will also get impacted.
84.9 84.1
Investments in short term or low du-
ration debt funds will prove effective
as they are less prone to the changes in
% CHANGE interest rates. “There will be a flight to
quality and portfolios with high-grade
6.88% 12.61% -0.83% 1.92% -3.30% 1.66% corporate bonds could gain AUMs in the
mutual fund industry. Accordingly, cat-
Total Total Gross tax Net tax Direct Indirect egories like banking and PSU funds and
receipts expenditure revenues revenues taxes taxes short term bond funds may find favour
with investors.” adds Iyer.
revised rate. government will have to spend for the Also, investors can consider dynamic
There are also speculations of debt current social obligations and we may see bond funds to ride the interest rate vola-
monetisation where the RBI funds the RBI printing money.” adds Singh. tility. The portfolio duration of these
expenditure by directly buying govern- The massive foreign investors’ out- funds are dynamically managed by the
ment bonds. However, direct monetisa- flows from the debt markets are also a fund manager depending on the future
tion comes with the risks of high infla- cause of concern for the bond market. expectations of interest rates. These
tion as it implies printing of additional Foreign investors have dumped debt se- funds generate returns by churning debt
money. Inflation occurs when too much curities worth `60,300 crore in the month securities of different durations.
money chases too few goods. India being of March 2020.
a supply-constrained economy, there is On one side, concerns like borrow-
a high probability that the additional ings, inflation and FPI outflows are Please send your feedback to
etwealth@timesgroup.com
money will channel into a price rise. “The creating upward pressure on interest
 The Economic Times Wealth

SMART STATS
April 13-19, 2020

In This Section
MUTUAL FUNDS - P18
LOANS AND DEPOSITS - P20
ALTERNATE INVESTMENTS- P21

ET WEALTH TOP 50 STOCKS

Every week we put about 3,000 stocks through four key filters and rate them on a mix of factors. The end result
of this is the listing of the top 50 stocks based on the composite rating to help ease your fortune hunt.
RANK PRICE ` GROWTH%* VA LUAT I O N R AT I O S RISK R AT I N G
Current Previous Stock Net Div Downside Bear No. of Consensus
Rank Rank Price Revenue Profit PE PB Yield PEG Risk Beta Analysts Rating

KEC International 1 1 157.65 27.51 45.85 8.34 1.67 3.88 0.20 2.07 1.24 34 4.76
1 Fast growing stocks
JK Cement 2 3 970.65 23.81 95.69 26.41 2.78 1.84 0.27 1.59 0.75 30 4.87
Top 5 stocks with the highest
Engineers India 3 2 65.10 38.54 34.49 11.13 1.75 6.85 0.27 1.90 0.66 15 4.20 expected revenue % growth
HG Infra Engineering 4 4 160.00 39.61 69.05 8.01 1.54 0.32 0.14 2.35 1.00 16 5.00 over the previous year
Power Grid Corp of India 5 15 164.45 13.27 20.18 6.88 1.46 5.34 0.34 1.38 0.60 27 4.67 HG Infra
40
Engineering
Birla Corp 6 5 419.40 11.97 69.28 12.68 0.72 1.83 0.18 2.11 1.03 11 5.00
Engineers India 39
Larsen & Toubro 7 6 812.80 19.66 25.93 12.77 1.82 3.47 0.50 1.75 1.10 42 4.83
Prestige Estates
JSW Energy 8 21 42.00 3.68 35.22 9.92 0.58 2.37 0.26 1.69 0.56 17 4.59 39
Projects
UltraTech Cement 9 11 3,367.00 27.92 87.49 37.58 3.22 0.35 0.47 1.64 0.91 45 4.53 Ajanta Pharma 37
Kalpataru Power Trans 10 19 175.85 14.08 25.93 5.78 0.87 3.65 0.25 2.03 1.12 21 4.76
Gujarat Gas 36
Adani Ports & SEZ 11 7 251.90 29.41 27.07 13.05 2.14 1.36 0.43 1.90 1.13 25 4.76
Century Plyboards 12 9 112.65 11.92 50.47 16.62 2.53 0.94 0.33 1.82 0.74 20 4.60
Emami 13 13 230.25 11.70 79.52 33.92 4.95 3.60 0.38 1.78 0.69 34 4.12
2 Least expensive stocks
Alkem Laboratories 14 14 2,709.00 27.69 74.09 42.74 5.98 1.12 0.59 1.22 0.42 22 4.36 Top 5 stocks with the lowest
Redington India 15 22 82.85 24.52 18.93 6.49 0.83 10.50 0.35 2.56 0.88 10 4.70
price-earnings ratio

CCL Products India 16 12 184.75 24.99 31.45 16.11 2.97 3.67 0.48 1.73 0.86 10 4.80 NMDC 5.20
Sobha 17 8 175.35 18.09 10.84 5.61 0.75 4.19 0.65 2.32 0.72 22 4.86
CESC 5.24
ITC 18 28 185.35 14.23 30.41 17.88 3.82 3.22 0.60 1.69 0.83 38 4.45
Dilip Buildcon 5.45
Prestige Estates Projects 19 23 181.85 38.52 33.30 16.43 1.61 1.62 0.55 2.97 1.02 18 4.50
Oberoi Realty 20 43 310.35 14.35 29.54 13.38 1.38 0.65 0.45 1.78 0.51 26 4.39 Sobha 5.61
Manappuram Finance 21 18 112.05 0.90 72.34 10.19 2.08 2.04 0.15 2.67 1.54 15 4.53 NTPC 5.69
Transport Corp of India 22 26 172.85 16.94 30.75 9.01 1.47 1.16 0.34 1.93 0.95 10 4.90
VRL Logistics 23 16 161.45 11.74 32.29 15.65 2.23 4.48 0.49 1.81 0.73 15 4.33
3 Best PEGs
Gujarat Gas 24 24 235.15 36.49 142.41 38.65 7.34 0.44 0.25 1.77 0.82 30 4.00
Top 5 stocks with the least
Sun Pharmaceutical 25 29 454.45 22.27 46.49 41.89 2.69 1.32 0.89 1.65 0.69 41 4.07 price-earnings to growth ratio
Mphasis 26 25 675.60 24.15 13.18 12.13 2.41 4.01 0.80 1.46 0.70 33 4.30 Manappuram
Finance KEC International
Blue Star 27 44 504.60 24.22 39.96 25.66 5.60 4.21 0.66 1.62 0.82 27 4.07
HeidelbergCement India 28 30 153.50 13.11 41.13 15.68 2.96 1.02 0.37 1.95 1.03 18 4.50
0.14 0.15 0.18 0.20 0.25
Ipca Laboratories 29 33 1,602.75 36.30 79.10 45.64 6.50 0.31 0.58 1.48 0.23 26 4.15
Mahanagar Gas 30 37 898.45 4.79 44.73 16.10 3.67 2.25 0.35 1.86 0.97 30 4.13
HG Infra Birla Corp Kalpataru
Rallis India 31 27 217.35 31.42 52.80 27.30 3.30 1.25 0.53 2.00 1.16 20 3.95 Engineering Power Trans
HCL Technologies 32 35 469.05 27.04 13.92 12.80 3.04 1.08 0.79 1.43 0.76 49 4.43
NMDC 33 32 79.75 6.61 4.83 5.20 0.95 7.03 0.37 2.44 0.74 22 4.50 4 Income generators
NTPC 34 17 87.10 17.70 8.75 5.69 0.78 0.59 0.67 1.44 0.72 27 4.93 Top 5 stocks with the highest
CESC 35 46 468.35 11.49 8.08 5.24 0.69 4.43 0.88 1.67 0.77 18 4.94
dividend yield (%)
Redington India 10.50
Reliance Industries 36 20 1,219.95 7.54 37.42 18.09 1.85 0.55 0.57 1.81 1.01 37 4.49
NMDC 7.03
Aurobindo Pharma 37 10 460.20 27.69 20.25 11.39 1.94 0.68 0.55 2.79 1.17 35 4.43
Engineers India 6.85
Apollo Hospitals 38 36 1,279.85 27.08 87.26 75.64 5.36 0.51 0.83 1.85 1.01 23 4.87 Power Grid
Corp of India 5.34
Jubilant Life Sciences 39 31 341.35 10.55 25.13 9.26 1.13 2.92 0.39 2.27 1.07 13 4.46
Motherson 5.34
Zee Entertainment 40 47 149.85 14.07 20.16 9.12 1.60 2.44 0.46 3.28 1.00 30 4.00 Sumi Systems
Ahluwalia Contracts India 41 -- 160.90 14.37 20.90 9.04 1.44 0.20 0.30 2.30 1.13 18 4.50
5 Least risky
Narayana Hrudayalaya 42 -- 285.65 15.53 141.44 96.92 5.31 0.72 0.65 1.90 0.62 12 4.92
Top 5 stocks with the lowest
Motherson Sumi Systems 43 45 66.05 11.14 18.49 12.32 1.81 5.34 0.60 2.80 1.25 37 4.19 downside risk
Crompton Greaves 44 38 224.85 13.66 40.50 35.55 13.00 0.95 0.88 1.43 0.63 37 4.68 Coromandel
Thermax International
Ajanta Pharma 45 39 1,408.10 37.45 41.27 31.98 5.51 0.95 0.79 1.61 0.69 13 4.31
Shree Cement 46 -- 20.31 87.36 57.77 6.01 0.90 0.70 1.56 0.86 43 3.21
1.22 1.35 1.38 1.38 1.43
Dilip Buildcon 47 -- 216.25 20.47 18.03 5.45 1.06 0.49 0.30 2.70 1.25 16 4.69
Thermax 48 40 710.35 4.43 41.12 24.57 2.81 1.97 0.64 1.35 0.41 32 3.06
Alkem Power Grid HCL
Coromandel International 49 -- 528.15 7.32 49.41 21.23 4.56 0.68 0.43 1.38 0.69 17 4.35 Laboratories Corp of India Technologies
Ramco Cements 50 34 494.65 17.08 28.53 21.29 2.55 1.19 0.77 1.55 0.85 31 3.64 SEE DOWNSIDE RISK AND BEAR BETA COLUMNS
IN THE ADJACENT TABLE.
*REVENUE AND NET PROFIT GROWTH IS BASED ON CONSENSUS ANALYSTS' EXPECTATIONS. NR: NOT IN THE RANKING. DATA AS ON 9 APRIL 2020. SOURCE: BLOOMBERG
 smart stats
18 The Economic Times Wealth April 13-19, 2020

LAGGARDS & LEADERS

ETW FUNDS 100
BEST FUNDS TO BUILD YOUR PORTFOLIO
Taking a long-term view of fund returns, here is a list of 10
funds in each category—five leaders (worth investing) and
five laggards (that may be a drag on your portfolio).

LAGGARDS LEADERS

ET Wealth collaborates with Value Research to identify the top-performing Equity: Large-cap 5-year returns
funds across categories. Equity funds and equity-oriented hybrid funds are
-2.6 5.56
ranked on 3-year returns while debt-oriented hybrid and income funds are Taurus Large cap Equity Axis Bluechip
ranked on 1-year returns. -2.49 3.7
Principal Nifty 100 Equal Weight Canara Robeco Bluechip Equity

Value Research Net Assets

RETURNS (%)
Expense -1.09 3.54
Fund Rating (` Cr) 3-Month 6-Month 1-Year 3-Year 5-Year Ratio (%) Baroda Large Cap Mirae Asset Large Cap
-0.99 3.18
EQUITY: LARGE CAP
Axis Bluechip Fund  11,823.95 -17.15 -13.42 -7.91 7.46 5.56 1.71
7.5% Franklin India Bluechip Nippon India ETF Shariah BeES

THE 3-YEAR -0.85 3.04

Canara Robeco Bluechip Equity Fund  352.87 -18.52 -11.65 -10.5 3.34 3.7 2.56
Sundaram Select Focus Fund  1,046.48 -23.37 -17.13 -17.7 1.24 2.33 2.25
RETURN DSP Top 100 Equity SBI ETF Nifty Next 50
OF AXIS
Tata Index Sensex Fund  14.89 -26.14 -19.78 -21.69 1.03 1.45 0.46 BLUECHIP IS
HDFC Index Fund - Sensex Plan  803.31 -26.84 -20.47 -22.4 0.87 1.75 0.3 THE HIGHEST
Edelweiss Large Cap Fund  174.32 -22.97 -17.82 -18.65 0.29 1.45 2.07 IN ITS Equity: Multi-cap 5-year returns
Motilal Oswal Focused 25 Fund  1,236.79 -21.24 -14.33 -10.92 0.01 2.64 2.2 CATEGORY.
Mirae Asset Large Cap Fund  16,733.83 -25.62 -19.1 -21.62 -0.13 3.54 1.67 -3.35 5.82
UTI Nifty Index Fund  1,855.78 -27.28 -21.29 -23.98 -0.69 0.98 0.17 Taurus Starshare Parag Parikh Long Term Equity
HDFC Index Fund Nifty 50 Plan  1,059.45 -27.34 -21.42 -24.18 -0.85 0.91 0.3
-3.27 5.45
ICICI Prudential Bluechip Fund  23,608.74 -26.01 -20.59 -22.92 -1.97 1.53 1.77
Nippon India Multi Cap SBI Focused Equity
Indiabulls Bluechip Fund  148.38 -26.52 -20.35 -22.2 -2.52 1.33 2.43
-2.88 4.99
EQUITY: LARGE & MIDCAP Nippon India Retirement Axis Focused 25
Invesco India Growth Opportunities Fund  2,498.42 -23.55 -18.15 -19.18 0.8 2.5 1.98
0.8%
THE 3-YEAR -1.81 4.44
Mirae Asset Emerging Bluechip Fund  9,613.59 -24.48 -15.82 -18.1 0.48 7.38 1.84
RETURN OF HDFC Focused 30 IIFL Focused Equity
LIC MF Large & Mid Cap Fund  656.93 -23.06 -17.86 -16.47 -1.07 3.61 2.61
INVESCO IN-
Canara Robeco Emerging Equities Fund  5,597.35 -20.71 -13.56 -18.35 -1.52 4.67 1.93 DIA GROWTH
-1.57 4.28
Sundaram Large and Mid Cap Fund  1,167.45 -27.56 -22.53 -22.95 -2.01 2.49 2.18 OPPORTUNI- LIC MF Multicap Tata Retirement Savings
Kotak Equity Opportunities Fund  3,167.85 -25.16 -16.38 -19.34 -2.32 2.57 2.1 TIES FUND IS
THE HIGHEST
Principal Emerging Bluechip Fund  2,116.72 -22.52 -15.64 -19.28 -2.85 3.28 2.11
IN ITS
DSP Equity Opportunities Fund  5,279.30 -25.44 -20 -21.47 -3.29 2.55 1.96 CATEGORY. Equity: Mid-cap 3-year returns
EQUITY: MULTI CAP
-10.86 6.7
SBI Focused Equity Fund  8,263.77 -19.17 -12.52 -13.35 4.33 5.45 1.88
Motilal Oswal Midcap 100 ET Axis Midcap
Parag Parikh Long Term Equity Fund  2,794.86 -17.96 -12.07 -12.22 4.11 5.82 1.99
Axis Focused 25 Fund  9,764.08 -23.13 -18.33 -14.52 2.98 4.99 1.83 -10.39 -0.82
Canara Robeco Equity Diversified Fund  1,771.87 -18.5 -12.36 -14.3 2.7 2.64 2.26 Aditya Birla Sun Life Mid Cap Quant Mid Cap
IIFL Focused Equity Fund  756.12 -22.22 -14.95 -11.35 2.12 4.44 2.32
-9.99 -2.73
DSP Equity Fund  3,522.61 -21.76 -16.48 -14.74 0.4 2.78 2.05
SBI Magnum Midcap DSP Midcap
Tata Retirement Savings Fund - Progressive Plan  742.53 -21.17 -15.68 -15.75 0.19 4.28 2.43
Edelweiss Multi Cap Fund  544.52 -23.63 -19.11 -21.54 -1.11 2.13 2.42 -9.38 -3.49
JM Multicap Fund  138.75 -24.04 -20.19 -15.7 -1.23 3.09 — Sundaram Mid Cap Edelweiss Mid Cap
Kotak Standard Multicap Fund  29,459.53 -26.46 -20.27 -22.02 -1.99 3.17 1.66 -9.07 -3.91
SBI Magnum Multicap Fund  8,491.77 -25.37 -21.59 -21.81 -2.38 2.59 1.84
ICICI Prudential Midcap Nippon India Growth
Motilal Oswal Multicap 35 Fund  12,371.55 -25.62 -22.59 -22.93 -4.94 2.36 1.8

EQUITY: MID CAP

Axis Midcap Fund  5,192.94 -13.88 -9.51 -6.2 6.7 5.44 1.94 6.7% Equity: Small-cap 3-year returns
DSP Midcap Fund  7,458.11 -20.83 -13.32 -15.88 -2.73 4.13 1.93
THE 3-YEAR
Kotak Emerging Equity Fund  6,850.82 -26.42 -18.85 -22.32 -5.37 2.28 1.88
RETURN OF -16.1 0.48
AXIS MID-
Aditya Birla Sun Life Axis Small Cap
L&T Midcap Fund  6,212.86 -24.29 -18.18 -24.97 -5.51 2.37 1.95 CAP FUND IS
THE HIGH- -15.04 -0.11
EQUITY: SMALL CAP EST IN ITS Sundaram Small Cap SBI Small Cap

CATEGORY.
Axis Small Cap Fund 2,506.67 -24.1 -17.78 -11.43 0.48 4.12 2.01
-13.69 -7.39
SBI Small Cap Fund  3,475.83 -21.3 -17.01 -19.09 -0.11 6.9 2.19
HSBC Small Cap Equity Nippon India Small Cap
Nippon India Small Cap Fund  8,566.82 -27.39 -21.66 -29.96 -7.39 2.63 1.81
HDFC Small Cap Fund  9,154.08 -31.82 -29.4 -40.3 -8.15 -0.09 1.94 -13.37 -7.49
L&T Emerging Businesses Fund  5,606.21 -31.98 -28.54 -37.04 -10.21 0.77 1.98 Quant Small Cap Union Small Cap

EQUITY: VALUE ORIENTED -12.9 -8.15

Kotak India EQ Contra Fund  866.17 -26.49 -21.06 -23.13 -0.34 1.75 2.39 Franklin India Smaller Companies HDFC Small Cap
Invesco India Contra Fund  4,668.45 -23.01 -17.2 -21.48 -0.51 3.25 1.93
Tata Equity PE Fund  4,567.21 -26.51 -22.03 -25.24 -5.34 1.67 1.92
L&T India Value Fund  7,040.66 -29.29 -23.32 -29.12 -7.82 0.51 1.88 Hybrid: Aggressive 5-year returns
EQUITY: ELSS
-3.26 4.65
Axis Long Term Equity Fund  21,658.58 -20.58 -15.81 -12.15 3.6 3.89 1.7 3.6% JM Equity Hybrid Canara Robeco Equity Hybrid
Canara Robeco Equity Tax Saver Fund  1,036.37 -16.52 -10.89 -13.19 3.03 2.97 2.3
THE 3-YEAR
Mirae Asset Tax Saver Fund  3,281.58 -25.81 -17.87 -19.93 1.21 — 1.97 RETURN OF -2.27 4.29
Invesco India Tax Plan  1,028.18 -21.34 -15.75 -17.99 0.18 2.57 2.39 AXIS LONG Nippon India Equity Hybrid Principal Hybrid Equity
Aditya Birla Sun Life Tax Relief 96  10,072.72 -20.97 -14.22 -20.18 -0.84 2.61 1.71 TERM EQUITY
FUND IS THE
-1.16 4.17
JM Tax Gain Fund  37.72 -26.64 -23.02 -21.19 -1.81 1.99 —
HIGHEST IN PGIM India Hybrid Equity DSP Equity & Bond
Quant Tax Plan  9.54 -19.35 -14.28 -19.66 -1.86 4.87 2.48
ITS CATEGORY. -0.34 4.17
Tata India Tax Savings Fund  2,060.38 -26.27 -20.48 -22.36 -2.35 2.64 2.11
Kotak Tax Saver  1,135.45 -25.12 -17.58 -19.27 -2.55 1.69 2.48
Tata Hybrid Equity Tata Retirement Savings
DSP Tax Saver Fund  6,096.28 -25.72 -20.29 -20.82 -2.65 2.85 1.97 -0.17 4.13
Motilal Oswal Long Term Equity Fund  1,685.97 -26.2 -19.75 -19.25 -2.98 4.37 2.1 LIC MF Equity Hybrid SBI Equity Hybrid
ANNUALISED RETURNS IN % AS ON 8 APRIL 2020.
 smart stats
The Economic Times Wealth April 13-19, 2020 19

ETW FUNDS 100 Top 5 SIPs

Value Research
Fund Rating
Net Assets
(` Cr) 3-Month 6-Month
RETURNS (%)
1-Year 3-Year 5-Year
Expense
Ratio
1 Top 5 equity schemes based
HYBRID: EQUITY SAVINGS on 10-year SIP returns
Edelweiss Equity Savings Fund  114.70 -3.61 -0.39 0.99 5.37 5.43 1.74 SBI Small Cap
Kotak Equity Savings Fund  1,712.30 -9.21 -5.75 -4.74 3.45 4.78 2.12
14.59
Axis Equity Saver Fund  792.93 -10.37 -7.76 -6.03 3.09 — 2.35
Canara Robeco Emerging Equities
ICICI Prudential Equity Savings Fund  1,473.63 -12.59 -8.29 -6.69 2.02 4.48 1.36
13.04
HYBRID: AGGRESSIVE (EQUITY-ORIENTED)
Axis Long Term Equity
Canara Robeco Equity Hybrid Fund  3,071.18 -13.18 -7.37 -7.88 3.29 4.65 2.05 3.3%
SBI Equity Hybrid Fund  32,469.68 -17.46 -12.73 -10.59 2.92 4.13 1.62 THE 3-YEAR 11.84
Mirae Asset Hybrid Equity Fund  3,423.88 -19.16 -12.45 -14.48 1.42 — 1.94 RETURN OF
CANARA SBI Focused Equity
DSP Equity & Bond Fund  6,464.64 -17.04 -12.35 -10.54 0.79 4.17 1.92
ROBECO EQ- 10.91
Tata Retirement Savings Fund - Moderate Plan  1,141.67 -17.85 -12.71 -14.15 0.37 4.17 2.23
UITY HYBRID
Principal Hybrid Equity Fund  1,265.62 -17.37 -12.27 -18.47 0.33 4.29 2.07 FUND IS THE Principal Emerging Bluechip
HDFC Retirement Savings Fund - Hybrid Equity Plan  387.69 -18.82 -14.67 -17.58 -0.32 — 2.73 HIGHEST IN
ITS CATEGORY. 10.80
HDFC Children's Gift Fund  3,082.53 -20.85 -16.61 -19.08 -0.76 2.81 2.12
ICICI Prudential Equity & Debt Fund  20,611.45 -21.84 -15.04 -19.28 -1.67 3.03 1.73 SIP: SYSTEMATIC % ANNUALISED RETURNS
INVESTMENT PLAN AS ON 8 APRIL 2020
HYBRID: CONSERVATIVE (DEBT-ORIENTED)
Baroda Conservative Hybrid Fund  25.36 -0.3 1.53 8.45 6.67 6.33 2.07
Top 5 MIPs
ICICI Prudential Regular Savings Fund
Tata Retirement Savings Fund - Conservative Plan


1,746.10
136.63
-4.39
-4.85
-0.86
-2.31
1.69
0.18
5.88
3.89
7.03
5.87
1.98
2.22 2 Top 5 MIP schemes based on
Indiabulls Savings Income Fund  26.30 -4.77 -1.88 -0.82 6.34 — 2

DEBT: MEDIUM- TO LONG-TERM 3-year SWP returns

Nippon India Income Fund  299.46 2.01 3.04 11.7 7.63 7.68 1.62 Indiabulls Savings Income
SBI Magnum Income Fund  1,301.28 1.42 4.86 11.53 7.43 8.13 1.47 11.7%
THE 1-YEAR 6.55
IDFC Bond Fund Income Plan  683.35 2.01 2.95 10.96 6.92 7.57 1.9
ICICI Prudential Bond Fund  3,437.89 0.93 3.43 9.27 7.02 7.67 1.08 RETURN OF Baroda Conservative Hybrid
NIPPON INDIA
DEBT: MEDIUM-TERM INCOME FUND 6.33
SBI Magnum Medium Duration Fund  3,099.90 1.63 4.49 10.47 8.14 8.6 1.13 IS THE HIGH- ICICI Prudential Regular Savings
EST IN ITS
IDFC Bond Fund Medium Term Plan  3,065.60 1.3 2.72 8.41 6.87 7.45 1.44
CATEGORY. 5.76
HDFC Medium Term Debt Fund  1,416.65 1.28 3.7 8.23 6.9 7.62 1.29

BNP Paribas Conservative Hybrid
Indiabulls Income Fund 30.90 1.6 2.63 7 7.63 7.45 0.9
4.44
DEBT: SHORT-TERM
Axis Short Term Fund  5,398.22 1.29 3.56 8.55 7.34 7.75 0.95 Canara Robeco Conservative Hybrid
L&T Short Term Bond Fund  5,189.52 1.64 3.65 8.51 7.37 7.6 0.73 4.42
HDFC Short Term Debt Fund  12,216.31 1.14 3.56 8.48 7.6 7.96 0.39
SWP: SYSTEMATIC % ANNUALISED RETURNS
IDFC Bond Fund Short Term Plan  12,340.94 1.28 3.47 8.39 7.36 7.63 0.8
WITHDRAWAL PLAN AS ON 8 APRIL 2020
Kotak Bond - Short Term Regular Fund  11,559.57 1.2 3.24 8.19 7.07 7.6 1.13
Baroda Short Term Bond Fund  417.49 1.32 3.43 8.16 7.48 8.07 1.29

DEBT: DYNAMIC BOND

SBI Dynamic Bond Fund
IDFC Dynamic Bond Fund


1,308.83
2,077.51
1.48
2.44
3.7
3.58
12.12
11.82
7.65
7.39
8.32
7.95
1.67
1.79
12.1%
THE 1-YEAR
3 Small Cap cash holdings
Edelweiss Dynamic Bond Fund  43.30 2.83 4.35 11.69 8.05 7.6 1.04 RETURN OF
Quantum Dynamic Bond Fund  60.30 2.55 4.59 11.28 7.57 — 0.68 SBI DYNAMIC
BOND FUND IS
28.02
ICICI Prudential All Seasons Bond Fund  3,188.69 1.74 4.49 9.81 7.77 8.56 1.32
THE HIGH-
Axis Dynamic Bond Fund  420.49 0.74 3.14 9.78 7.15 7.75 0.65 EST IN ITS
PGIM India Dynamic Bond Fund  46.89 0.55 2.26 9.38 7.47 7.94 1.75 CATEGORY.
15.15
Kotak Dynamic Bond Fund  1,204.89 0.55 2.48 8.8 7.96 8.69 1.08 12.02
10.09
8.62
DEBT: CORPORATE BOND
HDFC Corporate Bond Fund  13,389.16 1.32 3.33 8.85 7.76 8.24 0.5
Aditya Birla Sun Life Corporate Bond Fund  17,605.87 1.23 3.27 8.33 7.67 8.18 0.45
Kotak Corporate Bond Fund - Standard Plan  4,839.91 1.23 3.33 8.32 7.82 8.09 0.6 Quant ITI Small Tata Small HDFC Principal
Expense as on 29 February 2020
ICICI Prudential Corporate Bond Fund  13,243.33 1.01 3.27 8.21 7.37 7.97 0.56 Small Cap Cap Cap Small Cap Small Cap
Returns as on 8 April 2020
Franklin India Corporate Debt Fund  1,512.27 0.17 3.07 7.31 7.59 7.88 0.85 Assets as on 29 February 2020
All equity funds ranked on 3-year returns. Debt funds ranked on 1-year returns. Rating as on 31 March 2020 % OF ASSETS AS ON 29 FEBRUARY 2020
Did not find your fund here?
Log on to www.wealth.economictimes.com for an exhaustive list.

Methodology
The Top 100 includes only those funds that have a 5- or
4-star rating from Value Research. The rating is determined
EQUITIES (figures over the past one year)
Large-cap: Mostly invested in large-cap companies.
4 Debt: Credit Risk
Multi-cap: Mostly invested in large- and mid-cap
by subtracting a fund’s risk score from its return score.
The result is assigned stars according to the following companies. FUND 1.38 1.43 1.46 1.49
distribution:

  Top 10%

Mid-cap: Mostly invested in mid-cap companies.
Small-cap: Mostly invested in small-cap companies.
RAISER 1.05
  Next 22.5% Tax planning: Offer tax rebate under Section 80C.
(Not covered
  Middle 35% in ETW Funds International: More than 65% of assets invested abroad.


 Next 22.5%
 Bottom 10%
100 listing) Income: Average maturity varies according to objective.
Gilt: Medium- and long-term; invest in gilt securities.
`1.65 lakh
Fixed-income funds less than 18 months old and equity funds Equity-oriented: Average equity exposure more was the per capita* AUM
less than three years old have been excluded. This ensures than 60%. of New Delhi in February
that all the funds have existed long enough to be tracked for Debt-oriented aggressive: Average equity exposure DSP IDBI Sundaram HDFC IDFC
consistency of performance. Given the focus on long-term 2020. This was highest Credit Credit Short Term Credit Credit
between 25-60%.
investing, liquid funds, short-term funds and FMPs are not among all states. Risk Risk Credit Risk Risk Risk
part of the list. For the same reason, we have considered only Debt-oriented conservative: Average equity exposure Debt
the growth option of funds that reinvest returns instead of less than 25%. *Per capita AUM is divided by the
population of the respective states.
offering dividends that increase the NAV of funds. Arbitrage: Seek arbitrage opportunities between equity
and derivatives. % AS ON 29 FEB 2020
Despite these rigorous filters, the list includes 2/3 funds of % EXPENSE RATIO IS CHARGED ANNUALLY.
each category to maximise choice from the best funds. Asset allocation: Invest fully in equity or debt as per METHODOLOGY OF TOP 100 FUNDS ON
The fund categories are: market conditions. WWW.WEALTH.ECONOMICTIMES.COM
 loans and deposits
20 The Economic Times Wealth April 13-19, 2020

LOANS & DEPOSITS

ET WEALTH collaborates with ETIG to provide a comprehensive ready reckoner of loans and fixed-income
instruments. Don’t miss the information on investments for senior citizens and a simplified EMI calculator.

Top five bank FDs

TENURE: 1 YEAR
Interest rate (%)
compounded qtrly
What `10,000
will grow to
HOME LOAN RATES
With effect from 1 October, all banks have made the transition to external
Ujjivan Small Finance Bank 8.00 10,824
benchmarks for pricing new home loans. Most banks have picked the RBI
IDFC First Bank 7.25 10,745
RBL Bank 7.20 10,740
repo rate as the external benchmark.
Indusind Bank
AU Small Finance Bank
7.00
7.00
10,719
10,719
REPO RATE: 4.40%
FOR SALARIED FOR SELF EMPLOYED (%)
BANK
TENURE: 2 YEARS RLLR (%) FROM (%) TO (%) FROM (%) TO (%) WEF
Ujjivan Small Finance Bank 8.00 11,717 SBI Term Loan 7.05 7.20 7.55 7.35 7.70 1 April 2020
AU Small Finance Bank 7.50 11,602
Punjab National Bank 7.05 7.20 7.80 7.20 7.80 1 April 2020
DCB Bank 7.30 11,557
Bank of India 7.25 7.25 7.55 7.25 8.15 1 April 2020
IDFC First Bank 7.25 11,545
RBL Bank 7.25 11,545 Central Bank of India 7.25 7.25 7.35 7.25 7.35 1 April 2020

TENURE: 3 YEARS Canara Bank 7.30 7.35 9.30 7.35 9.30 7 April 2020
AU Small Finance Bank 7.77 12,597 SBI Max Gain 7.05 7.45 7.80 7.60 7.95 1 April 2020
DCB Bank 7.60 12,534 Indian Bank 7.20 7.55 7.85 7.60 7.90 1 April 2020
Ujjivan Small Finance Bank 7.50 12,497
J & K Bank 7.60 7.70 8.00 7.70 8.00 28 Mar 2020
IDFC First Bank 7.25 12,405
Union Bank of India 7.20 8.05 8.35 8.05 8.35 1 April 2020
RBL Bank 7.00 12,314
ICICI Bank 8.10 8.10 9.10 8.35 9.20 1 April 2020
TENURE: 5 YEARS
DCB Bank 7.50 14,499 Karur Vysya Bank 7.60 8.20 10.05 8.20 10.05 1 April 2020
AU Small Finance Bank 7.50 14,499 Bank of Maharashtra 7.45 8.20 9.00 8.45 9.35 7 April 2020
IDFC First Bank 7.25 14,323 UCO Bank 8.05 8.05 8.15 8.05 8.15 5 Octo 2019
RBL Bank 7.15 14,252
Indian Overseas Bank 8.00 8.20 8.45 8.20 8.45 7 Feb 2020
Ujjivan Small Finance Bank 7.00 14,148
Kotak Mahindra Bank 8.60 8.20 9.15 8.30 9.25 16 Jan 2020
Bank of Baroda 7.25 8.25 8.50 8.25 8.50 28 Mar 2020
IDBI Bank 8.25 8.25 8.60 8.45 9.00 16 Jan 2020
Top five senior citizen bank FDs
Interest rate (%) What `10,000
Axis Bank 8.55 8.55 9.20 8.65 9.40 2 Nov 2019
TENURE: 1 YEAR compounded qtrly will grow to
Federal Bank 8.55 8.55 8.65 8.60 8.70 16 Dec 2019
Ujjivan Small Finance Bank 8.50 10,877
South Indian Bank 8.80 8.80 10.05 8.80 10.05 1 Jan 2020
RBL Bank 7.90 10,814
IDFC First Bank 7.75 10,798 Dhanlaxmi Bank 7.93 8.85 9.95 8.85 9.95 1 Mar 2020
DCB Bank 7.55 10,777
Indusind Bank 7.50 10,771

TENURE: 2 YEARS Your EMI for a loan of `1 lakh

Ujjivan Small Finance Bank 8.50 11,832 TENURE 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS
AU Small Finance Bank 8.00 11,717
@ 8%
RBL Bank 7.95 11,705 2,028 1,213 956 836 772
DCB Bank 7.80 11,671 @ 10%
2,125 1,322 1,075 965 909
IDFC First Bank 7.75 11,659 @ 12%
TENURE: 3 YEARS @ 15% 2,224 1,435 1,200 1,101 1,053
AU Small Finance Bank 8.27 12,784
DCB Bank 8.10 12,720
2,379 1,613 1,400 1,317 1,281
Ujjivan Small Finance Bank 8.00 12,682 FIGURES ARE IN `. USE THIS CALCULATOR TO CHECK YOUR LOAN AFFORDABILITY.
FOR EXAMPLE, A `5 LAKH LOAN AT 12% FOR 10 YEARS WILL TRANSLATE INTO AN EMI OF `1,435 X 5 = `7,175
IDFC First Bank 7.75 12,589
RBL Bank 7.70 12,571

TENURE: 5 YEARS
Post office deposits Interest (%)
Minimum
investment (`)
Maximum
investment (`)
Features
Tax
benefits

DCB Bank 8.00 14,859

Sukanya Samriddhi Yojana 7.60 250 1.50 lakh One account per girl child 80C
AU Small Finance Bank 8.00 14,859
RBL Bank 7.85 14,751 Senior Citizens' Savings Scheme 7.40 1,000 15 lakh 5-year tenure, minimum age 60 yrs 80C
IDFC First Bank 7.75 14,678
Public Provident Fund 7.10 500 1.50 lakh p.a. 15-year tenure, tax-free returns 80C
Ujjivan Small Finance Bank 7.50 14,499

Kisan Vikas Patra 6.90 1,000 No limit Can be encashed after 2.5 years Nil

Top five tax-saving bank FDs 5-year NSC VIII Issue 6.80 100 No limit No TDS 80C
Interest What `10,000
TENURE: 5 YEARS AND ABOVE rate (%) will grow to Time deposit 5.50-6.70 200 No limit Available in 1, 2, 3, 5 year tenures 80C#
DCB Bank 7.50 14,499
Single 4.5 lakh 5-year tenure, monthly returns Nil
AU Small Finance Bank 7.50 14,499 Post Office Monthly Income
6.60 1,500
Scheme
IDFC First Bank 7.25 14,323 Joint 9 lakh 5-year tenure, monthly returns Nil
RBL Bank 7.15 14,252
Recurring deposits 5.80 10 No limit 5-year tenure Nil
Ujjivan Small Finance Bank 7.00 14,148
Savings account 4.00 20 No limit `10,000 interest tax-free Nil
ALL DATA SOURCED FROM ECONOMIC TIMES INTELLIGENCE GROUP
(ETIGDB@TIMESGROUP.COM) Data as on 09 April 2020 # Benefit available only for 5-year deposit
 market watch
The Economic Times Wealth April 13-19, 2020 21

HOW YOUR INVESTMENTS

PERFORMED THIS WEEK
This weekly tracker keeps you updated on the benchmark stock index, bond yields, forex movements and Index of industrial production.
It also tracks the changes in the past one year to give investors an idea how their investments performed over a longer period.

Sensex 10-yr yield (%) USD-INR IIP (%)

38,939 31,160 7.38 6.49 69.54 76.28 4.48 4.85 4.50
9 APR 2019 9 APR 2020 9 APR 2019 9 APR 2020 9 APR 2019 9 APR 2020 3.18
2.71

Aug '19

Sep '19

Oct '19
` PER DOLL AR 1.25 1.82 2.01
0.16 0.07

Feb '19

Apr '19

May '19

Jun '19

Jul '19

Jan '20
Nov '19
Mar '19

Feb '20
Dec '19
-1.41

-4.58
-6.63

CHANGE
X 1 WEEK 10.24% 1 WEEK 35 (bps) 1 WEEK 1.19% LATEST 4.50
X 1 YEAR -19.98% 1 YEAR -88.10 (bps) 1 YEAR 10.59% 1-YEAR AVG 0.96
Equity indices bounced back amid hopes Bond yields jumped owing to the fiscal The rupee weakened due to the IIP surged to 4.5% in February 2020 helped by
of additional government stimulus. Also, deficit concerns and increased government surge in the dollar index and expansion in the manufacturing, mining and
investors were calmed due to the falling borrowings that are meant to support the weak market sentiments due to electricity sectors. However, the lockdown
coronavirus death rate in advanced economies. economy amid coronavirus pandemic. global risk aversion. may impact the industrial growth in future.

PENNY STOCKS UPDATE

Penny stocks as a recommended non-traditional investment? Not exactly. ET WEALTH
neither has the expertise nor does it recommend investing in such stocks. But since the
relatively ‘low’ cost of investment attracts some investors to penny stocks, we provide
a weekly snapshot of this most volatile and uncertain type of stock investing.

Top price gainers Top volume gainers

MARKET 1-WEEK (%) 1-MTH (%) 1-MONTH AVG 1-MONTH AVG MKT CAP MARKET 1-WEEK (%) 1-MTH (%) 1-MTH AVG 1-MONTH AVG MKT CAP
STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR) STOCK PRICE (`) CHANGE CHANGE VOL (LAKH) VOL CHG (%) (`CR)

Welcon International 8.50 3.41 94.95 0.09 739.03 17.26 Anubhav Infrastructure 9.45 5.00 14.68 0.18 1,09,909.19 20.23
Gujarat State Financial 1.73 14.57 88.04 0.05 265.62 15.42 Orient Green Power 1.78 14.10 11.25 13.82 8,397.75 133.63
JCT 1.18 14.56 73.53 3.82 143.87 98.94 Rollatainers 1.10 6.80 -26.67 2.79 4,949.67 27.51
Syncom Formulations (I) 0.86 30.30 59.26 18.72 139.99 67.14 Gujarat Natural 9.03 0.00 -10.68 0.08 3,189.45 50.79
Gold Line International 0.29 11.54 52.63 0.11 -7.85 15.11 Shalimar Productions 0.49 0.00 0.00 0.01 2,924.68 48.23
Gennex Laboratories 3.02 54.08 47.32 1.24 38.53 38.20 Ashirwad Steels 9.23 4.89 6.95 0.02 2,296.57 11.54
Kohinoor Foods 7.94 15.57 45.96 0.05 222.04 29.43 Vascon Engineers 8.69 6.23 -17.86 4.78 1,727.43 154.80
Rana Sugars 4.20 15.70 31.66 0.78 52.96 64.50 Quadrant Televentures 0.19 0.00 0.00 0.07 1,447.38 11.63
CG Power and Industrial 6.80 21.00 31.27 2.17 143.78 426.19 KSS 0.19 0.00 0.00 0.28 1,337.53 39.51
Angel Fibers 7.56 -1.31 30.57 0.08 -87.43 18.90 JMT Auto 1.28 42.22 2.40 3.29 1,313.73 64.49

Top price losers Top volume losers

Future Consumer 6.00 -5.21 -57.92 9.50 308.78 1,152.67 Subex 4.13 21.83 -23.94 1.70 -89.19 232.11
Vikas Multicorp 0.93 -11.43 -52.06 1.53 -55.84 61.71 Brightcom Group 4.07 20.06 1.24 1.75 -81.50 193.83
Unitech 1.30 2.36 -39.53 9.58 -72.81 340.12 Vikas Proppant & Granite 5.81 -8.50 -33.14 1.53 -79.57 294.10
Alok Industries 4.96 15.08 -37.37 15.87 701.40 1,096.51 Jaypee Infratech 0.79 12.86 -15.05 2.01 -74.80 109.73
Hindustan Construction 4.33 9.07 -37.34 6.71 153.80 655.13 Unitech 1.30 2.36 -39.53 9.58 -72.81 340.12
SREI Infrastructure 4.04 1.00 -33.66 3.74 208.69 203.25 Bil Energy Systems 0.54 3.85 -1.82 1.34 -71.76 11.42
Vikas Proppant & Granite 5.81 -8.50 -33.14 1.53 -79.57 294.10 Mercator 0.59 5.36 -11.94 1.30 -63.43 17.85
Reliance Home Finance 0.78 1.30 -32.76 2.53 -52.30 37.83 Sanwaria Consumer 1.29 14.16 13.16 3.21 -60.83 94.96
Vikas Ecotech 1.13 11.88 -27.56 2.02 102.68 34.53 Vikas Multicorp 0.93 -11.43 -52.06 1.53 -55.84 61.71
RattanIndia Power Ltd. 1.45 4.32 -26.77 7.69 -47.54 661.84 Tata Teleservices 2.03 11.54 -13.25 2.25 -55.42 396.85

THE STOCKS HAVE BEEN SELECTED USING THE FOLLOWING FILTERS: PRICE LESS THAN `10, ONE-MONTH AVERAGE VOLUME GREATER THAN OR EQUAL TO 1 LAKH AND MARKET
CAPITALISATION GREATER THAN OR EQUAL TO `10 CRORE. DATA AS ON 9 APRIL 2020. SOURCE: ETIG DATABASE AND BLOOMBERG.
 QA
your queries
22 The Economic Times Wealth April 13-19, 2020

I bought a flat in 2014 for

`38 lakh and had to sell it for
& I have 120 shares of IRCTC
bought for around `1,800 each.
`37 lakh in 2019. How can I How long should I hold them now
use the loss to square off my that prices have fallen?
tax liability or capital gains?
Can I get any kind of benefit You have The current
from the loss I incurred and incurred a
what will be the effective market sentiment is bearish and it is not prudent
capital loss of to time the resurgence or next bull rally. IRCTC
loss for calculations?
`8.75 lakh on was one of the biggest winners of 2019 and
the property.
This will be
Our panel of experts will holding the stock is much recommended.
However, your holding cost is very high at
treated as a long-term capital loss since the answer questions related to `1,800. The stock recently peaked at `1,995.
asset was purchased more than 24 months any aspect of personal Depending on your cash flow and risk appetite,
before the date of sale. This caculaton takes consider buying 60 additional shares and bring
into account the cost inflation index for finance. If you have a query, down the average cost. This will help you earn
2014-15 and 2019-20. mail it to us right away. better returns. Do not indulge in panic selling or
Long term capital loss can be set off only booking permanent loss. I recommend
against long term capital gains. However, if diversifying your portfolio and
you do not have any long-term capital gain
this year, this loss can be carried forward for QUESTION OF THE WEEK rebalancing asset allocation
annually. The exposure to
eight assessment years immediately equity should be through
following the assessment year in which the I am 50 and have been investing mutual fund SIPs.
loss was first computed. If in PPF and FDs so far. I want to
any long-term capital gain
invest in mutual funds through Raj Khosla
arises during this period,
it can be adjusted SIPs for the next 10 years. How Founder and Managing Director,
MyMoneyMantra.com
against this loss. should I go about it?

With key equity indices correcting by

Shubham Agrawal over 30% from their January peaks, I am 28. I live with my wife,
Senior Taxation Advisor,
TaxFile.in quality equities are now available at infant daughter, parents and
attractive valuations. So, along with the brother. My salary is `1.3 lakh
SIPs, I suggest you also make lumpsum per month. After paying
investments in selected funds in a household expenses and car
I invested `6 crore in staggered manner, with an investment loan EMI, my monthly Start by building a
mutual funds in the past investments are as follows: contingency fund
horizon of at least five years. You can
18 months. I am planning `20,000 in chit funds; `8,000 by allocating
spread your investible surplus among towards LIC premiums; `1,000
to invest at least `1.2 `15,000 from the
crore per annum for the SIPs of multi-cap funds (including ELSS SIP in Mirae Asset Emerging
Since we do not funds according to your tax liability) money being put
next 20 years. I am 51. Bluechip, `2,000 in Axis Long
know your asset and index funds in the ratio 4:1. Multi- Term Equity, `500 in Nippon
in chit funds
Optimistically how much
allocation, it is hard cap funds are free to invest across all India Large Cap and `500 in SBI towards a liquid
will the investment be
worth in 2040? to make an estimate market capitalisation and segments on Debt Hybrid. I have around `1 fund. Once a sum
of your corpus. But the basis of prevailing market lakh in stocks. I plan to invest equivalent to six
just to give an idea, conditions without any caps. ELSS `50,000 per annum in NPS. I will months’ of
if you continue your investments and they still have a surplus of `25,000 monthly expenses
funds come with a lock-in period of 3
earned 8% annually, then it can grow to per month. My priorities are my is accumulated,
years and qualify for tax deductions daughter’s education and
about `87 crore. Given the large sum under Section 80C. Investing in index the `15,000
marriage and domestic travel should be
involved, your portfolio may start getting funds will reduce the risk of once every six months with a
skewed towards top-performing funds and opportunity loss in case your multi-cap allocated to a
family of five.
develop concentration risk. Seek the help of funds fail to fully exploit the falling separate liquid
a fee-based adviser to allocate the assets market. In multi-caps, you can consider fund to cater to
and demarcate investments for different the direct plans of any of these three family vacations and bigger expenses. Although
financial goals. Ensure it is diversified funds—Axis Multicap, Invesco India you pay a premium for a LIC policy, nothing is
across equity and debt funds, Contra and ICICI Prudential Mutlicap. specified about the cover it provides. Your life
international funds, some Consider any of these funds for your cover should be eight to 10 times your annual
quality low risk deposits as tax-saving investments—Axis Long income. The remaining `5,000 from chit funds
well as stocks or ETFs. Term Equity, IDFC Tax Advantage should be keep aside for term and health insurance
Review annually. and Invesco India Tax. premiums if needed. Open a Sukanya Samriddhi
Among index funds, you Account for your daughter and contribute around
can invest in any of `10,000 towards it. Split the remaining `15,000
Vidya Bala, Co-Founder, these—Nippon India (plus the `4,000) into three funds—one index fund,
PrimeInvestor.in
ETF NV20, ICICI increase allocation towards Mirae Emerging
Prudential NV 20 ETF Bluechip and add a mid-cap fund.
and IDFC Sensex ETF. Consult a financial planner or
an adviser who can help you
I am a senior citizen. I have multiple quantify your goals and
FDs in a PSU bank in the names of
Naveen Kukreja
CEO and Co-Founder, chart out an appropriate
my wife, daughter and myself. The Paisabazaar.com action plan.
proposed `5 lakh customer deposit
insurance is per deposit or per
customer? The bank says it is per The insurance limit of `5 lakh is applicable per customer per bank
customer irrespective of the number (and not per deposit per branch). Here, the term ‘customer’ refers Prableen Bajpai
Founder, Managing Partner,
of deposits in her/his name or total to the depositor who is named first. Different combinations of FinFix Research & Analytics
amount of money involved. holders may exist, but such combinations will be disregarded,
as long as the first holder is the same. It is prudent to spread
your deposits across a few banks, in case you are concerned about this issue. Ask our experts
Have a question for the experts?
Jayant R. Pai etwealth@timesgroup.com
CFP and Head - Products, PPFAS Mutual Fund
 tax optimiser
The Economic Times Wealth April 13-19, 2020 23

Perks, health plan cut tax by `26k

Sudhir Kaushik of Taxspanner.com tells readers how they can
optimise their tax by rejigging their income and investments.

M
umbai-based IT
professional Pankaj
Agarwal earns well
and avails of many
deductions but his
salary structure is not tax friendly,
INCOME
resulting in a high tax outgo.
Taxspanner estimates that Agarwal
FROM EMPLOYER
can reduce his tax by more than
`25,000 if his pay structure is re-
jigged to include some tax free allow-
ances and he buys health insurance INCOME HEAD CURRENT SUGGESTED
for himself and his family.
Agarwal should start by asking Basic salary 14,74,200 14,74,200
his company to replace the transport Reduce this taxable
and medical allowances (which are House rent allowance 7,37,100 7,37,100 portion of the pay
package.
now taxable) in his paycheque with
some tax-free reimbursements such Special allowance 4,12,176 4,04,376
These perks are
as telephone and newspaper bills. Medical allowance 15,000 0 now taxable.
These perks are tax free against Replace
submission of actual bills. If he Conveyance allowance 19,200 0 with tax free
gets `24,000 (`2,000 a month) for tel- reimbursements.
ephone and Internet expenses and Telephone reimbursements 0 24,000
These perks are tax
`18,000 (`1,500 a month) for newspa- Newspaper allowance 0 18,000 free on submission
pers and periodicals, his annual tax of actual bills.
will come down by about `13,000. Leave travel allowance 76,000 76,000
Next, he should buy medical in-
surance for himself and his family. Meal coupons 11,800 11,800
Though he is covered by the group Annual bonus 4,00,000 4,00,000
medical insurance offered by his
company, these plans have a limited Contribution to NPS under Sec 80CCD(2) 1,47,420 1,47,420
scope. Also, they don’t work when
a person leaves a job. In the current TOTAL 32,92,896 32,92,896
situation when companies are par-
ing the workforce, an independent
health plan for the family is neces-
sary. If he pays `25,000 premium for INCOME FROM OTHER SOURCES
a health plan, his tax will come down Shift to debt funds
by `7,800. Interest income 15,000 0 to avoid tax on FD
More tax can be saved if he shifts income.
from tax unfriendly fixed deposits Capital gains 0 0
to debt mutual funds. Interest from
fixed deposits is taxed at normal Rental income 0 0
rates while gains from debt funds
TOTAL 15,000 0
are taxed at 20% if the holding period
exceeds three years. The investor is All figures are in `
also eligible for indexation benefit.
Denotes suggestion to increase Denotes suggestion to reduce

Tax-saving investments
INVESTMENT
OPTION
CURRENT
(`)
SUGGESTED
(`)
Pankaj
Provident Fund 2,24,000 2,24,000
Agarwal’s tax WRITE
TOTAL TAX SAVED
PPF 1,50,000 1,50,000 TAX ON
TAX ON
OTHER
TAX ON
CAPITAL TO US
NPS under Sec 80CCD(1b) 50,000 50,000
SALARY INCOME

CURRENT
GAINS
`25,584 FOR HELP
TOTAL ADMISSIBLE 2,00,000 2,00,000 PER YEAR Paying too much
tax? Write to us
`5,46,030 `4,680 0 at etwealth@
Other deductions `5,50,710 TAX RATIO timesgroup.com with
‘Optimise my tax’
EXEMPTION OR CURRENT SUGGESTED (Total tax as % of annual income)
as the subject. Our
DEDUCTION (`) (`)
EXISTING SUGGESTED experts will tell you
SUGGESTED (`) (`) how to reduce your
HRA exemption 4,72,580 4,72,580
Buy medical tax by rejigging your
Medical insurance 0 25,000 cover for self `5,25,126 0 0 16.6% 15.9% pay and investments.
and family.
TOTAL 4,72,580 4,97,580 `5,25,126
 your feedback & more...
24 The Economic Times Wealth April 13-19, 2020

Readers’ response, online and in print, to ET Wealth stories has been enlightening.
We pick some that add information and perspective to our articles from previous issues.
This is in reference to the cover story, stage will come when honest people
‘Coping with Covid’. The valuation will keep their money in cash at
story does not make sense. When
a lockdown happens, livelihoods
Stay in cash, home. All this is happening to cover
up the NPA mess.
are lost and government money is
diverted towards rehabilitation
invest later V.S.

and medical emergencies. How This refers to the cover story, ‘Coping My heartfelt thanks to Dhirendra
will consumption revive to justify with Covid’. I would advise investors to Kumar for highlighting the plight of
valuation? When consumption falls, be patient. This is not the time to invest. senior citizens and private sector
earnings and valuation collapse too. Let the virus play out. After that, see retirees who do not get pension. The
Only those who have invested in the quarterly results and assess the Senior Citizens’ Savings Scheme was
large-cap funds can hope to see some financial damage. Subsequently, take started as a welfare scheme. The
light at the end of this tunnel. a call. Stay in cash at this point of time interest rate was 9% and was revised to
R. Shaji Kumar or liquidate to strengthen your cash 9.3% in April 2015. The rate was then
position. slashed to 8.3% in 2015. Now it has
This refers to the story, ‘Small savings Rajiv Gupta been reduced drastically. This will make
rate cut may hurt your goals’. the life of the elderly difficult as the
The government is taking the money prices of essential items, medicines and
from middle class pensioners to feed health care keep rising.
the poor, but not dipping into its own income from these deposits. The savings in these schemes so that they have Mohit Pande
reserves. My senior citizen father will government should take a considerate a steady income to meet cost of living and
get at least `12,000 less as pension this decision and reinstate the original interest medical expenses, which only increases with I do not agree with the story, ‘Rejig
year. Who will compensate people like rates for the sake of senior citizens. age. Most have no other source of income. your SIP strategy now’. The scenarios
him? Chandrasekhar Ramanan P.K. mentioned are hypothetical. With no
Ranit Dey vaccine in sight, this pandemic may
Thanks for highlighting the plight of those This refers to the column, ‘Special take time to subside. Markets will
This is a terrible blow for senior with money in small savings schemes. measures needed to save small savings react accordingly.
citizens who depend on interest Senior citizens have invested their life’s schemes’. Due to the dismal savings rate, a Swetha

REALTY Micro market for mid income buyers

HOT SPOT Affordability is a key attraction for homebuyers in this developing Ahmedabad locality.

LOCALITY SNAPSHOT SUPPLY BY BHK

BOPAL, AHMEDABAD 1 BHK 1%

Situated along Sardar Patel Ring Road, it is a developing area suited for affordable and mid-segment buyers
2 BHK 25%
Proximity to key job hubs of Prahlad Nagar, Sanand, etc, drives residential demand in this region
Presence of social and retail infrastructure close by comprises schools, hospitals and malls
3 BHK 58%
Key amenities - DPS Bopal, Shanti Asiatic School, Shalby Hospitals, Iscon Mega Mall, Gulmohar Park Mall, etc
Well-connected through Sardar Patel Ring Road, SG Highway, Ambli Road and local railway network 4 BHK 16%
SHILAJ PRICE RANGE LOCALITY VALUES Consumer preference by
`3,000-5,000 per sq ft budget segment (`)
Bopal 6%
14% Below 25 lakh
Price (`/sqft): 3,300-5,000
BOPAL 25-50 lakh
Rent (`/month): 19,000-29,000 15%
50-75 lakh
75 lakh-1.0 crore
Shela 24% 41%
Airport: 34 km Above 1 crore
SOUTH BOPAL Price (`/sqft): 3,000-4,500
Railway Station:
6 km Rent (`/month): 16,900-25,300
Consumer preference by
Ring Road: covered area (sq ft)
SHELA
2 km Shilaj
4 BHK &
Price (`/sqft): 3,300-4,600 14% Below 750
1 BHK 2 BHK 3 BHK above Rent (`/month): 14,300-23,400 750-1,000
700 sq ft 1,150 sq ft 1,660 sq ft 3,300 sq ft 4%
22% 1,000-1,250
`24
lakh (avg)
`42
lakh (avg)
`75
lakh (avg)
1.80
`crore (avg)
South Bopal
Price (`/sqft): 3,300-5,000
10% 24% 1,250-1,500
1,500-1,750
26%
Rent (`/month): 17,000-26,000 Above 1,750

Schools 12+ Hospitals 10+ Restaurants 10+ Banks 9+ Grocery Stores 8+ Petrol Pumps 6+ In dia’s No. 1 P ropert y Sit e

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before publication. In spite of this, if any omission, inaccuracy or printing errors occur with regard to the data contained in this
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form of advice, recommendation or arrangement by the newspaper. The Economic Times Wealth will not be liable for any
direct or indirect losses caused because of readers’ reliance on the same in making any specific or other decisions. Readers are
recommended to make appropriate enquiries and seek appropriate advice before making any specific or other decisions.
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reserved. RNI No.: MAHENG/2014/57046. VOLUME 07 NO. 15