NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 16 NO.

53

Thursday, March 3, 2022

livemint.com

mint primer QUICK EDIT

What do Feb auto Recovery

sales say about at stake
Recent data readings offer com-
the economy? fort on the health of India’s
economy. The manufacturing
purchasing managers’ index
BY ALISHA SACHDEV released on Wednesday edged
Automobile production and demand across segments such as personal higher to 54.9, as recorded in
mobility and goods movement are a sign of the country’s economic February, from 54 in January.
growth. Auto wholesale data for February throws up some interesting More than this rise, though, the
trends and also highlights some potential risks. Mint explains: fact that it’s staying well above
the 50 mark, which separates
Showing recovery expansion from contraction,
Wholesale dispatches of passenger cars from original equipment manufactur- makes for optimism on this
ers were on a steady path of improvement or sustained volumes in February. major sector. Also, data released
POTENTIAL HEADWINDS POTENTIAL TAILWINDS a day earlier showed India’s
OIL prices AUTO DEMAND SCHOOLS goods and services tax mop-up
beyond OUTLOOK and
$100/barrel universities above ₹1.3 trillion for the fifth
reopening successive month in February.
These numbers suggest the
HIGH PRIVATE third covid wave has done our
commodity offices
prices resuming economy only limited harm.
work-from- With infection cases now back
office
DISRUPTION
in control, supply chains should
in semiconduc- EV momentum function smoother and help
tor production likely to
due to war in continue commercial activity gain pace.
Ukraine That the Reserve Bank of India
SARVESH KUMAR SHARMA/MINT
has chosen to stay dovish to the
What do February How is this linked to surprise of many should keep
1 numbers show?
Wholesale dispatches of passenger
2 economic recovery?
Signs of rural stress and poor
credit conditions supportive.
But the threat of inflation is fast
cars from original equipment customer sentiment on the lower worsening. Crude oil prices
manufacturers (OEMs) were on a end of the income pyramid are have risen past $110 per barrel,
steady path of improvement or evident from the lacklustre and with no end to the Ukraine
sustained volumes in February. demand for entry-level cars and crisis in sight, our central bank
Two-wheeler production, on the two-wheelers. Subdued tractor may need to move decisively
other hand, fell nearly 27% year- demand also betrays the same
towards policy tightening, even
on-year (y-o-y). Dispatches of stress. Factors such as high fuel
trucks were higher in February prices and successive increases in as the 2022-23 budget’s core
across segments—medium, heavy sticker prices of two-wheelers assumptions weaken. With too
and light. Tractor sales, however, because of higher raw material many economic variables up in
were under pressure due to a high costs have made the cost of the air, uncertainty stares at us.
base effect from February last year. acquisition high. Customers are
Barring some automakers, exports therefore exercising caution.
were largely in the positive terrain Entry-level passenger cars have
for most OEMs. The nascent also become nearly 10% more
electric vehicle (EV) market also
saw a multi-fold jump in sales in
expensive as compared to January
last year. Demand of mini-cars fell
MINT METRIC
February. close to 18% y-o-y. by Bibek Debroy
MINT

Becki Beckmann did bemoan

3 What’s the industry’s
demand outlook?
Manufacturers and experts expect demand
Loss of her precious I-phone.
to rebound in the next fiscal year.
Ten years after
Reopening of educational institutions and Amidst surprise and laughter,
private offices will support demand in the
two-wheeler and passenger car segments.
Toilet pipes returned what was her own.
The infrastructure push and growing e-
commerce demand will push demand for
commercial vehicles. But rising fuel and
vehicle prices are key downside risks.
QUOTE OF THE DAY
ULIP will be a game-changer for
4 Are chip shortages still
playing spoilsport? 5
Chip shortages continued to play
Can the Ukraine war
disrupt supply chains?
The auto sector is on the cusp of
the Indian logistics landscape. It
spoilsport. Royal Enfield and TVS recovery even as it faces headwinds
will assist just-in-time inventory
Motor Co. said the shortage such as high commodity prices and management, monitor cargo
impacted sales of high-end bikes the global semiconductor crisis.
and scooters. Maruti Suzuki India While automakers are not
movement, among others
Ltd, India’s largest carmaker, has anticipating any major direct
shown month-on-month impact of the Ukraine crisis,
improvement, but it isn’t able to Icra Ltd highlights that in the
utilize its full production capacity event of a drawn-out war, chip
yet. Mahindra & Mahindra Ltd and availability could be hampered AMITABH KANT
Tata Motors Ltd were able to ramp further as Russia and Ukraine are Niti Ayog CEO
up production sequentially and both key suppliers of raw
over the year—alternative sourcing materials. Oil prices have
arrangements may have kicked in. already crossed $100/barrel and
But most OEMs said the challenge can further dent demand for
will continue for a few months. two-wheelers.

MINT PODCASTS

WHY NOT MINT MONEY?
Do you need a new financial plan that
suits your current needs or maybe
even avenues that
can fetch good divi-
dends for your
investments? Here
is a way that helps
you navigate the
tricky world of sala-
ries, taxes, insurance, mutual funds,
and more. This podcast covers ideas
that help you make and save money.
TELL ME HOW YOU DID IT MINT BUSINESS NEWS
Want a peek into some of India’s fin- Stocks, companies, mergers, acquisi-
est brands—the kind that competes tions and more. Here is all the news
globally and wins that will keep you
the battle hands well-informed
down? This weekly every morning. This
podcast hosted by podcast by Gopika
Namrata Zakaria Gopakumar gets
has it all, with some you all the action
very candid jour- from the world of
neys of the founders of home-grown business, both local and global. Also,
firms that range from food, fashion brush up on your knowledge with the
and film to home, art and design. ‘Business Term of the Day’.
 PLAIN FACTS

Pew report lays bare

India’s gender troubles
BY PRAGYA SRIVASTAVA & MANJUL PAUL

A ny woman who chooses to behave like a full human being should be warned that the armies of the status quo will treat
her as something of a dirty joke,” American feminist icon Gloria Steinem once said. Even as the world celebrates
Women’s Day on 8 March each year, that status quo seems to be thriving, particularly in India, show the findings of
a 2019-20 survey of 29,999 Indians by US-based think tank Pew Research Center. “Indians accept women as political leaders,
but many favour traditional gender roles in family life,” said the survey report released on Wednesday. Mint elaborates:

Most Indians, regardless of gender,

think a wife must obey her husband 1 Disturbing Consensus
% of Indian adults who say... IN TRADITIONAL home settings, about nine in ten Indians
A wife must obey Men in a family should be primarily believe a woman must obey her husband, the Pew survey found.
her husband responsible for earning money If 89% of the men held these views, so did 86% of the women
Women in a family should be primarily responsible surveyed across regions.
for taking care of children
0 20 40 60 80 100 “Any oppressive system in the world, and India is not special
in that case, basically rests on being able to persuade a large
Women section of people who are oppressed that this is how the world
Gender
trend functions,” Kavita Krishnan, secretary of All India Progressive
Men
Women’s Association, said on the large share of women
Hindi belt agreeing with the notion.
Regional Southern states fared relatively better, with 75% respondents
trend
Southern states in agreement, as against 94% in Hindi belt states.
Hindi belt comprises Himachal Pradesh, Uttarakhand, Haryana, Uttar Pradesh,
Women and men, however, differed in their perceptions of
Rajasthan, Madhya Pradesh, Chhattisgarh, Bihar and Jharkhand. Southern states traditional divisions of household labour. Only 24% female
comprise Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu.
Source: Pew survey report: “How Indians View Gender Roles in Families respondents said women should be the primary caregivers to
and Society” (29,999 respondents) children, against 35% men.

2 Whose Job Is It? Most adults think men should get

precedence when there is a job scarcity
WHEN IT comes to the economic sphere, 79% Indians (82% of Respondents on whether men should get preference during
hiring when there is employment shortage (in %)
men surveyed and 77% of women surveyed) “completely” or
Completely agree Mostly or completely disagree
“mostly” agree that men should get precedence over women
Mostly agree Don't know/No response
when jobs are scarce. Higher education seems to temper such
views among college graduates, but not enough, with 74% still Education qualification Gender
favouring the precedence of men in the job market. 2 2
24 16
The data paints a gloomy picture for India compared with 59
other countries. Indians are thrice more likely than the median College
graduates 49 Men
global level (17%) to “completely agree” that men have a greater 3 19 4
17 23
right over jobs in times of high unemployment. Of the 61 25
countries surveyed by Pew, only Tunisia has a higher share (64%). Less than 57 Women 54
This is not simply the case of women being unaware of their 23 college
23
rights; it also reeks of poor policy support, such as child care and
gender-sensitive work environment that could have encouraged Source: Pew survey report: “How Indians View Gender Roles in
women to participate in the labour market, experts said. Families and Society” (29,999 respondents)

3 Long Way Ahead Every second Indian said teaching boys to

respect women is the way to make them safer
EVEN AS attitudes in India around women’s safety Respondents (%) on how to improve women's safety
seem to have changed over the years, about one in four, Educational Age
irrespective of their education levels and age difference, qualification group
still hold the view that women should behave
“appropriately” to protect themselves, putting the onus Less than College 18-34 35+
college graduate years years
of crime on women, the survey found. However, 75% of
Indians believe violence against women is a big problem Teach boys to
respect all women 51 49 52 50
and the silver lining is that about half of Indians think
Teach girls to behave
boys should be taught to respect women. The trend appropriately 26 23 25 26
varies across states. In Rajasthan, 63% of the
Women are
respondents said it was more important to teach boys to already safe 2 2 2 2
respect all women, compared with 40% in West Bengal.
Improve law and 6 11 7 6
In the southern states, Karnataka residents were the order policing
most likely (36%) to see a solution in women behaving
appropriately and Andhra Pradesh least (21%), the Others 13 15 12 14
report said. In Chhattisgarh, just 7% respondents put Source: Pew survey report: “How Indians View Gender Roles in Families
the onus on women. and Society” (29,999 respondents)

Women in J&K, Assam most likely

to report gender discrimination 4 Facing Prejudice
Women (%) who personally felt discriminated against because FEWER THAN a quarter of Indian adults (23%) said there was “a
of their gender (in 12 months preceding the survey) lot of discrimination” against women. This perception did not
Jammu and differ significantly with age group, education level, caste, and
Assam
10 Kashmir 32 religion of respondents. However, the survey found varying
35 responses in different parts of India. Southern states, which are
20

30
generally viewed as more socially developed in terms of gender
relations, were more likely to report “a lot of” gender-based
discrimination against women, with 44% respondents saying so
in Telangana and 39% in Tamil Nadu. The share was the least in
Gujarat
7 Himachal Pradesh and Uttar Pradesh (6% each).
However, women themselves may not always admit to facing
prejudice. Just 16% women overall said they had personally felt
Tamil Nadu discriminated against based on gender in the year preceding the
28
survey. This was more likely among women from Jammu and
Source: Pew survey report: “How Indians View Gender Roles in Families Kashmir (35%) and Assam (32%). Women who had faced recent
and Society” (29,999 respondents)
financial hardship were a lot more likely to say so (22%).

5 Women At Top Youth, college graduates more likely to

see women as equals to men in politics
GENDER EQUALITY remains a pipe dream in Indian politics. How respondents compare men and women as
political leaders (in %)
Women are almost half of India’s voter base, yet they made up just
Men Women Both
14% of all people elected to the Lok Sabha in 2019. Political parties are are equally
field women on only a handful of seats in any election. There are better better good
various reasons for their poor engagement, including stereotyped 18-34 23 15 57
obligations such as managing household chores, which are years
Age
traditionally assigned to women, and a disproportionate burden of
35+ 27 14 54
family care. However, Indians in the Pew survey showed a strong years
tendency to accept women as political leaders, with a majority
(55%) either saying that women and men make equally good Less than 25 14 55
Education college
political leaders or that women can make better leaders than men
qualification
(14%). Tara Krishnaswamy, founder of activist group Political College 22 14 62
Shakti, said voters were far ahead on gender-related views on graduates
political leadership than political parties themselves, and Source: Pew survey report: “How Indians View Gender Roles in Families
and Society” (29,999 respondents)
“political parties are not meeting voters’ expectations”.
pragya.s@livemint.com AHMED RAZA KHAN/MINT

PEANUTS by Charles M. Schulz

 NeW DelhI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*
Thursday, March 3, 2022
SENSEX 55,468.90 778.38
‘We have evacuated about
12,000 Indians from Ukraine’
Shashi Shekhar
letters@hindustantimes.com
I
ndia is taking all necessary steps
to bring home stranded nationals
from Ukraine safely, Prime Min-
ister Narendra Modi said in an
interview with Hindi daily Hin-
dustan. India has so far evacuated
about 12,000 people from Ukraine,
Modi said, adding that the Indian Air
Force has joined the mission, apart
from regular flights, to bring back
remaining Indians from the war-torn
country. Around 30 flights will carry
Indians back in the next few days, he
added. Edited excerpts:
There is a huge crisis in
Ukraine, especially when it
comes to the evacuation of Indi-
ans. You have also been priori-
tizing it through several high-
level meetings. How is the situ-
ation?
Through Operation Ganga, we
are working day and night to bring
back all Indians trapped in this cri-
sis of war. We are also aware of the
kind of suffering our children had
to go through in these war condi-
tions. In many places, the weather
has deepened their misery. There-
fore, the first effort of the govern-
ment was to ensure that the Indian
citizens, our students, reach safer
places from the war-affected areas.
For this, I myself spoke to several
Govt to take a call on BharatPe: Inside
LIC IPO timing soon an old covenant
Gulveen Aulakh
gulveen.aulakh@livemint.com
NEW DELHI
T I
he finance ministry will
review the timing of Life
Insurance Corp. of
India’s mammoth initial public
offering as early as this week as
geopolitical uncertainties trig-
gered by the Russian invasion
of Ukraine have soured inves-
tor sentiment worldwide, two
senior officials aware of the
development said.
A decision is likely by the
end of the week on whether the
state-run LIC’s IPO, India’s
largest ever, should be
launched this fiscal, one of the
officials cited above said,
requesting anonymity.
The war in Ukraine, soaring
energy prices and the prospect
of a return to cold war-like
geopolitical rivalry have
scared investors, sparking a
As Moscow batters Kyiv, both ready for talks
AP
feedback@livemint.com
KYIV
R
ussia renewed its aerial
assault Wednesday on
Ukraine’s second-largest
city in a pounding that lit up the
skyline with balls of fire over
populated areas, even as both
sides said they were ready to
resume talks aimed at stopping
the fighting.
Seven days into Russia’s inva-
sion, a refugee crisis unfolded on
the European continent, with
the UN saying more than
870,000 people have fled
Ukraine and that the number
could soon hit 1 million.
Ukraine’s state emergency
service reported that more than
2,000 civilians have been killed,
but that could not immediately
be independently verified, and
neither side has disclosed its
military casualties.
Kharkiv, Ukraine’s second-
biggest city, with a population
livemint.com
NIFTY 16,605.95
oN A WAR FootING
To bring
back our citizens,
we have engaged
the IAF, apart
from the regular
flights. Around 30
flights will bring
back Indians in
the next few days.
Narendra Modi
Prime Minister
heads of states.
We are taking all the necessary got this cap relaxed so that the
steps to assist Indian citizens and number of flights could be
students who are still there. We increased.
have sent four ministers to coordi-
nate the entire process and ensure been that we were able to ensure
all possible help.
Our embassy has INTERVIEW 12,000 Indians from
been in contact with the
students long before the war
started and continues to guide zens, we have now engaged the
them. There used to be a cap on the Indian Air Force in this mission
number of flights between India apart from the regular flights.
and Ukraine due to the covid-re- Around 30 flights will bring back
lated air bubble. But before this sit- Indians in the next few days.
uation of conflict arose, we worked Mr. Prime Minister, elections in
selloff across asset classes and
delays in fund-raising plans
globally. The department of
investment and public asset
management (DIPAM), one of
the nodal bodies involved in
the IPO, has been holding
roadshows with global inves-
tors for the past two weeks
after the government filed
draft IPO papers for the mar-
ket regulator’s approval on 13
February.
The official said that the
roadshows have been going
well with sovereign wealth
funds, alternative investment
funds, pension funds, mutual
funds and new investors across
markets, including the US, UK,
Canada, Australia and Japan,
showing interest.
The government aims to sell
5% of its shareholding in the
country’s largest insurer
TURN TO PAGE 6
A handout picture from Ukraine’s interior ministry shows smoke
billows from a television centre in Kyiv after a missile attack. AFP
of about 1.5 million, came
under bombardment again
Wednesday, and a strike
reportedly hit a hospital in the
country’s north. Meanwhile, a
40-mile-long (64-km) column
of Russian tanks and other
vehicles stood outside the capi-
tal, Kyiv, while invading forces
pressed their assault on the
strategic port cities of Kherson
and Mariupol in the south.
187.95 DOLLAR ₹75.71
with the Ukrainian authorities and
The result of all these efforts has
the evacuation of about
Ukraine.
In order to bring back our citi-
Arti Singh
arti.singh@livemint.com
NEW DELHI
n a move hitherto unseen in
India’s startup ecosystem,
payments firm BharatPe on
Wednesday said its erstwhile
managing director and
co-founder Ashneer Grover was
“no longer an employee,
founder or director” and that he
and his family had indulged in
“extensive misappropriation of
company funds”.
The statement drew the cur-
tains on weeks of sniping
between the outspoken execu-
tive and the company, which
dragged in board members,
investors and co-founders and
engulfed the company in an
unseemly public spectacle.
While it all started with a leaked
conversation in which Grover
was heard abusing a Kotak
banker, he and his family now
Both sides held talks on Mon-
day, agreeing only to keep talk-
ing. It was not immediately clear
when new talks might take place
or what they would yield. Ukrain-
ian President Volodymyr Zelen-
skyy said on Tuesday Russia
should stop bombing before
another meeting.
Zelenskyy has decried Rus-
sia’s attacks on civilian targets
as a blatant terror campaign,
VOL. 16 NO. 53 Rs 5.00 IN DELHI-NCR; Rs 6.00 OUTSIDE DELHI-NCR. PRICE WITH HINDUSTAN TIMES Rs 9.50 (FOR DELHI & NCR) 20 PAGES
Ukraine: In search of a Manufacturing PMI sees rise,
passage to India uP12 but threats abound uP4
₹0.37 EURO ₹83.91 ₹0.32 OIL $120.31 $9.35 GOLD ₹51,258 ₹779
Volatile phase
Stocks plunged on Wednesday while oil and commodity
prices soared to multi-year highs.
56,400
56,247.28
122
120.91
DON’T MISS
European Brent
56,200 (Previous close) crude spot ($/bbl)
118
56,000 Sensex
114
55,800
55,468.90
(Close)
110
111.79
55,600 6.31am 7.15pm
Uttar Pradesh are now nearing 55,400 % change (1 month)
their end. You have addressed
dozens of rallies there. What are
55,200
55,618.0
(Open)
Aluminum
Nickel
14.76
9.53
Rural demand weakens in Dec
qtr as companies raise prices
55,000 Lead 7.55
your expectations? Tin 6.61 Sales volume of fast-moving consumer goods fell
The people of Uttar Pradesh are 54,800
9.15am 3.30pm Zinc 3.99 2.6% year-on-year in the December quarter, a
determined that the pace of develop- Source: Bloomberg Copper 3.64 decline that came after five quarters of positive
ment in the state for the last five years volume growth with demand for packaged goods
should not be allowed to stop. PARAS JAIN/MINT dipping sharply in India’s villages, according to
I sensed this public sentiment
very clearly during my rallies in dif-
ferent parts of UP. There is tremen-
Stocks decline, oil industry data released by NielsenIQ.
Accel India raises $650 mn for
>P7
dous enthusiasm among the people
for the environment of develop-
ment that has been created in the
prices surge ahead seventh venture capital fund
India, an early backer of startups such as
Flipkart and Freshworks, has raised $650
state. They yearn for greater devel- million in commitments for its seventh fund
opment in the near future. It is now Ujjval Jauhari & Rituraj Baruah mediate (WTI) also surpassed to invest in new opportunities such as
evident that people do not want to ujjval.j@livemint.com the $110-per-barrel-mark. Its emerging technology across India and
go back to the days when they had April futures contract on Southeast Asia, it said on Wednesday. >P8
I
to face problems in every aspect of ndian stocks plunged on NYMEX was 7.90% higher at
their life. Wednesday while oil and $111.31 per barrel, the highest Apple, Ford, others retreat from
You want to double the income commodity prices surged to level since 2013.
of farmers. Has the withdrawal multi-year highs, as the war in The surge in oil prices came
Russia; VW warns of disruption
of agricultural laws posed a Ukraine and sanctions on Rus- despite the decision of the Apple, Ford and Dell joined the roster of firms
hurdle to this? sia continued to whiplash International Energy Agency retreating from Russia, while other global businesses,
As far as doubling farmers’ markets. (IEA) member countries to including Volkswagen AG, warned of further supply
disruptions. Exxon Mobil Corp. said late Tuesday it
income is concerned, we planted The Nifty and the Sensex, release 60 million barrels of oil was halting operations at a multibillion-dollar oil and
the seeds on the same day when we taking cues from global indi- from their emergency gas project in Russia. >P10
implemented the recommenda- ces, fell 1.12% and 1.38%, reserves. The US also
tions of the Swaminathan Commis- respectively. announced tapping its strate-
sion. In the process of ‘Beej se Crude oil continued to soar. gic petroleum reserve. Government infra spending plan
Bazaar’, we have tried to help farm- The price of the May contract This is adding to substantial to revive wagon manufacturing
ers in every way. of Brent crude on the Inter- concerns about inflation in The Union government’s record capital
We have identified four pillars to continental Exchange (ICE) India even as the December expenditure push is expected to boost
make the lives of the farmers easier. stood at $113 at 7.30pm, quarter economic growth manufacturers of railway rolling stocks that
These are the four pillars: lowering according to Bloomberg data. slowed to a lower-than-ex- have seen orders stagnate for the last few years,
input cost; increasing the sources of This is the highest level of pected 5.4%. “This slowdown is Texmaco Rail and Engineering Ltd managing
Brent crude oil prices since director (MD) Ashish Kumar Gupta said. >P11
TURN TO PAGE 6 2014. The West Texas Inter- TURN TO PAGE 6
face serious fraud allegations.
While Grover resigned early
on Tuesday morning, the com-
pany said that was minutes after
he received the agenda for the
board meeting scheduled for later
that day, which was to consider
the findings of an independent
governance review at the firm.
Grover dismissed the allega-
tions later in the day, asking the
board and company management
to get back to work and that he was
concerned about the value
destruction at the firm. After all, as
he had said in his resignation letter,
he continues to be BharatPe’s sin-
gle largest individual shareholder.
That claim might come under
scrutiny in days to come, as the
severe falling out between Grover
and the company, including other
co-founders and board members,
has cast a shadow over the status
of a key informal arrangement
TURN TO PAGE 4
while US President Joe Biden
warned on Tuesday that if Rus-
sian leader Vladimir Putin is
not made to “pay a price” for
the invasion, the aggression
won’t stop with one country.
Russia, too, ramped up its
rhetoric, with foreign minister
Sergei Lavrov reminding the
world about the country’s vast
nuclear arsenal. In an interview
with Al-Jazeera, he said: “A third
world war will be nuclear, and
devastating,” according to Rus-
sian news sites.
A Russian attack hit the
regional police and intelligence
headquarters in Kharkiv, kill-
ing four people and wounding
several others, Ukraine’s emer-
gency service said. It added that
residential buildings were also
hit, but did not provide details.
A blast blew the roof off of the
five-story police building and set
the top floor on fire, according to
videos and photos released by the
TURN TO PAGE 6
02 THURSDAY, 3 MARCH 2022
NEW DELHI ECONOMY & POLICY LIVEMINT.COM

m MINT SHORTS
India’s output, exports of Sputnik
India exploring payment Banks hold
meeting on
vaccine at risk due to Ukraine crisis
New Delhi: India’s production and exports of Russia’s Sputnik
covid-19 vaccines are expected to slow further following US sanc-
tions on Russia’s sovereign wealth fund that promotes the shot
alternatives for Russian biz Swift freeze
in Russia
globally, three Indian pharmaceutical industry sources told Reu-
ters. The Russian Direct Investment Fund (RDIF) had billed India Shayan Ghosh & Subhash
as one of Sputnik’s biggest production hubs and markets, though Narayan
local sales have stagnated at 1.2 million doses out of 1.8 billion The methods being explored include routing payments through smaller Russian banks MUMBAI
doses of various vaccines administered in the country. REUTERS

W
hile the government
Dilasha Seth also being explored. But it will have its explores alternatives
US to release oil supplies to dilasha.seth@livemint.com difficulties as sanctions have come to work around the
into effect for all products other than Swift payments freeze for large
maintain global oil prices BENGALURU
agriculture, pharma and energy. Russian banks, Indian lenders

T
AFP
he Centre and the Reserve Also,the rouble is not a freely convert- held a meeting earlier this week
Bank of India (RBI) are ible currency,” the second official to discuss the challenges fol-
exploring alternative mech- added. lowing the sanctions, said two
anisms to process financial Queries emailed to spokespersons people aware of the develop-
transactions involving Rus- of the ministries of finance, commerce ment, seeking anonymity.
sian businesses, including routing and industry, and external affairs The agenda of the meeting,
payments through smaller Russian remained unanswered at press time. organized by the Indian Banks’
banks which have not been put under The commerce department set up a Association (IBA), was to look at
sanction, local currency trade and help-desk last week for traders as the the impact of the sanctions on
third-country payments, said two gov- Russia-Ukraine conflict intensified. Indian lenders and what could
ernment officials, requesting ano- Most queries so far pertain to financial be done to overcome the issues,
nymity. transactions-related difficulties faced said one of the two people.
The departments of economic by exporters. At present banks are not in
Washington: US President Joe Biden announced that his affairs, financial services and com- Meanwhile, representatives of the favour or any consolidated
administration has worked with 30 other countries to merce, and the ministry of external Indian Bankers’ Association met with request to the Reserve Bank of
release millions of barrels of oil from American strategic affairs are brainstorming over releas- banks to understand the exporters’ India in the matter since it has
reserves to maintain the global oil prices in the midst of a ing payments to exporters and busi- concerns and will share these with the initiated preliminary discus-
Russian invasion of Ukraine. PTI nesses that have been affected by the Exporters have raised concerns with the government and banks to get clarity on RBI to devise a mechanism for pro- sions. “Banks discussed how
sanctions imposed by the US, UK and whether their pending payments were secure. MINT cessing pending payments. realizations of export proceeds
EU following Russia’s invasion of Exporters have raised concerns and payments for imports have
Income tax refunds of over ₹1.83 tn Ukraine. look at the other banks. But again, stood at $2.6 billion, while imports with the government and banks to get come to a halt after the ban,” he
“Departments are exploring options there are sanctions on products, so were at $5.5 billion. clarity on whether their pending pay- added.
issued so far during current fiscal to resolve the issue. One option is those cannot be traded. However, RBI India shipped pharma products ments were secure and whether they “Banks have not proposed an
New Delhi: The income tax department on Wednesday said it whether payments can worth $469 million and should continue to export. alternative mechanism to the
has issued refunds worth over ₹ 1.83 trillion to more than 20.9 be routed through small SOME BANKS NOT SANCTIONED electrical machinery Last week, the Export Credit Guar- government or the RBI so far.
million taxpayers so far this fiscal. This includes 17 million Russian banks that have worth $301 million to antee Corp of India changed the cover However, the central bank
refunds of the 2020-21 fiscal ended 31 March 2021, amounting not been sanctioned,” THE idea is to AN option is that THE West, led by the Russia. Other major category shipments to Moscow from sought details of Indian banks’
to ₹34,202.31 crore. “CBDT issues refunds of over ₹1,83,579 crore said one of the two offi- release payments to payments can be
businesses that have routed through
US, has excluded
some banks from
items include tea, coffee, ‘open cover’ to ‘restricted cover’, transactions with Russian len-
to more than 20.9 million taxpayers from 1 April 2021 to 28 Feb- cials. Trade estimates been affected by the banks that have not the SWIFT financial apparel and textiles. which has revolving limits (normally ders and is assessing the situa-
ruary, 2022,” the I-T department tweeted. PTI put the due amount at sanctions in Russia been sanctioned transaction system During April 2021--Jan- valid for a year), and are approved on tion,” the second person said.
$400-500 million. uary 2022, India’s a case-by-case basis. Following its invasion of
The West, led by the exports stood at $2.99 The state-owned export credit pro- Ukraine last week, the US and
About 5,000 Indian students in US, has excluded some Russian banks is looking into the payments issue and billion, up 25% from a year ago, and vider clarified that the cover for ship- the European Union (EU) have
from the SWIFT financial transaction will revert with the best possible way accounting for 0.84% of India’s overall ments to Russia has not been with- barred some Russian lenders
Ukraine will be airlifted: Scindia system. “So far, SWIFT has been out,” said the second official. exports. drawn, but modified with effect from from the Swift network.
PTI
excluded for large banks. We could In FY21, Indian exports to Russia “Feasibility of rupee-rouble trade is 25 February. shayan.g@livemint.com

PM calls for robust data security network ‘Consider transfer

Gulveen Aulakh
gulveen.aulakh@livemint.com
of MBBS students’ housing sector and asked them
to come up with innovative
NEW DELHI ideas. “We have to increase self-
reliance in communications Priyanka Sharma country’s ministry of education

P
rime Minister Narendra sector,” the prime minister priyanka.sharma@livemint.com and science.
New Delhi: About 5,000 Indian students, earlier stranded Modi urged the private said. From a security point of “We want co-ordination

in the war in Ukraine, will be airlifted from neighbouring sector to come up with
Romania and Moldova between 2 March and 4 March, civil concrete suggestions on the
aviation minister Jyotiraditya Scindia, one of the union possible opportunities in sun-
ministers overseeing the evacuation process, said on rise sectors such as 5G and also
Wednesday night. There are currently about 3,000 Indian stressed on the need to have a
students stranded in the Romanian capital Bucharest and robust data security framework
1,000 in the border town of Siret. RHIK KUNDU within the country.
“There is a very clear road-
map laid down for 5G spectrum
India urges all its nationals to leave auctions in 2022. India has a
strong 5G ecosystem. There-
Kharkiv for safer locations nearby fore, a production-linked
New Delhi: India on Wednesday urged all its nationals in the incentive scheme for design in
besieged city of Kharkiv to leave for safer areas nearby within five 5G has also been proposed in
hours amid scenes of chaos following intense bombardment and the budget. I urge the private
a Russian airborne assault on Ukraine’s second largest city. sector to hold detailed discus-
Indian nationals in Kharkiv, where medical student Naveen She- sions on new opportunities
kharappa Gyandagoudar was killed in a Russian attack on Tues- emanating from these propos-
day, were asked to move out of the city immediately for their als and come up with concrete
safety in “light of the deteriorating situation”, according to an suggestions to the government
urgent advisory issued by the Indian embassy. STAFF WRITER to move forward,” he said on
Wednesday at a webinar on
implementation of proposals in
Govt policy push to put solar mfg the Union budget linked to
technology-enabled develop-
industry on strong footing: ISMA ment.
New Delhi: The government’s recent policy initiatives to pro- The government plans to
mote the manufacturing of solar power equipment in the country hold the spectrum auctions
will put the industry on a strong footing and help achieve ambi- soon and has also asked the sec-
tious targets, industry body ISMA said on Wednesday.The gov- tor regulator to provide its rec-
ernment has set an ambitious target of 500 gigawatts of renewa- ommendations on reserve pri-
ble capacity by 2030, which is about 5 times the current cumula- ces of 5G spectrum on a fast-
tive installations. PTI track mode.
T
view, servers should be located he doctors’ association in with the Romanian border
in India and the dependence on India are asking for a spe- authority for their safe passage
foreign countries should be cial provision under through the country. Also,
reduced, he said. National Medical Commission NMC should consider the
The animation, visual (NMC) to consider the transfer transfer of these MBBS stu-
effects, gaming, and comic of students studying medicine dents to medical colleges in
(AVGC) sector offers immense in Ukraine to medical colleges other countries valid when it
potential to employ youth, in other countries valid, in comes to application for the
Modi said. “We need to pro- addition to their safe return. entrance exam in India for for-
mote AVGC to build domestic This comes against the back- eign medical graduates,” the
Prime Minister Narendra Modi also urged the private sector to give capacity for serving our mar- drop of the fate of thousands of Progressive Medicos and Sci-
suggestions on opportunities in sunrise sectors such as 5G. PTI kets and the global demand. people studying entists Forum
Similarly, Indian toys have a medicine in the The fate of (PMSF) said.
Modi also emphasized on the tems and drones, semiconduc- huge market and we should use war torn country thousands of This comes
need to have a robust data secu- tors, space technology, genom- technology to capture the hanging in the people studying against the back-
rity framework even as he spec- ics, pharmaceuticals, and 5G global market,” he noted. balance. medicine in drop of an Indian
ified the requirement of secu- have been set as priorities for Innovative ways to handle The proposal
war-torn Ukraine student being
rity for communications and the country in the FY23 Union e-waste management should by the doctors’ killed in shelling
fintech networks. budget, the prime be identified with the help of association will, in is hanging in the in Ukraine’s
“India needs a Modi also sought minister said. technology to advance the gov- turn, ensure their balance Kharkiv and also
robust data secu- the industry’s The use of tech- ernment’s Swachh Bharat Mis- eligibility to apply when the Indian
rity framework. active role in the nology for ease of sion, the prime minister said. for the entrance government is
To benefit from application of living must be “I urge startups to focus on exam in India meant for foreign trying to evacuate Indian citi-
data, its govern-
modern focused on finding innovative solutions for medical graduates, the NEET- zens from Ukraine.
ance is also neces- besides the use of e-waste management, circular FMG (Foreign Medical Gradu- “We demand transfer of
sary and therefore technology in the optical fibre, rail, economy and electrical mobil- ates’ Exam). Indian students doing MBBS in
standards and housing sector road and other ity,” he said. Modi also exhorted Ukraine’s state-run universi- Ukraine to safer countries and
norms have to be infrastructure the private sector to take maxi- ties providing quality medical a special provision by NMC to
set,” he said, ask- along with PM mum advantage of the change education at low costs have consider their transfer valid
ing the industry and govern- Gati Shakti, he said. He also of rules for the use of geospatial been attracting Indian students and ensure their eligibility for
ment to prepare a roadmap. sought the active participation data and the infinite opportuni- for years. There are around NEET without any extra paper-
Sunrise sectors such as artifi- of the industry on the use of ties that have emerged because 18,095 Indian students in work,” said Dr. Harjit Singh
cial intelligence, geospatial sys- modern technology in the of the reform. Ukraine, according to the Bhatti, president, PMSF.

‘No discrimination’: Ukraine denies charges of racism at the borders CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Devina Sengupta hinder this,” @MFA_Ukraine sands waited to crossover to had reached the stations to that Africans are singled out suggestions or complaints
devina.sengupta@livemint.com said in a Twitter post. “In neighbouring countries on reach the border, they were for unacceptable dissimilar about errors.
Ukraine, there is no discrimi- foot or by train and bus. not allowed to board the trains. treatment would be shock-
Readers can alert the

U
kraine’s ministry of for-
eign affairs on Wednes-
day refuted allegations
of racism against its border
guards. In a Twitter post, the
ministry said there was no dis-
crimination “based on race,
skin colour or nationality” by
its officials.
“Ukrainian border guards in
cooperation with colleagues
from neighbouring EU coun-
tries and Moldova are doing
everything possible to speed
up the passage for all citizens
from Ukraine and have never
created obstacles that would
nation based on race, skin col-
our or nationality, including
when it comes to the crossing
of the state border by foreign
citizens. The first-come-first-
served approach applies to all
nationalities.”
Sayan Chowdhury, a fourth
year student of Ivano Frank-
ivsk National Medical Univer-
sity, who is currently in Roma-
nia, awaiting a flight back to
India, however, said Ukranian
border guards at Siret physi-
cally assaulted Indian students
and demanded $25-100 each
for safe passage to Romania.
Ashmita, a fourth-year stu-
dent of Vinnytsia National
Pirogov Medical University
who had to wait all day long on
27 February to get past the
border, said: “They gave pref-
erence to Ukranians to cross
over to Romania in cars and
buses. But we had to get down
from our bus and walk 8 km
from Chernivtsi (western
While some students had reached the stations to reach the Ukraine) to the check post and
border, they were not allowed to board the trains. AFP wait at the Ukraine-Romanian
border. We heard some stu-
Other Indian students, too, Ukranian borders officials. dents were abused and beaten
took to social media describ- Videos were circulated of vio- at the Polish borders.”
ing the hostile behaviour by lence at check-posts, as thou- While some other students
“My brother was told ‘Ukraini-
ans only’ and could only board
the last train leaving the sta-
tion,” said an Indian national
based in the Middle East,
whose brother managed to
escape the war zone.
“The number of people who
fled Ukraine to neighbouring
countries reached 677,000…”
United Nations High Commis-
sioner for Refugees, Fillipo
Grandi said in Twitter post on
1 March.
Students of other nationali-
ties, including Africa, also
alleged racist attacks. “Reports
ingly racist and in breach
newsroom to any errors in the
international law,” said cur- paper by emailing us, with your
rent chair of the African Union full name and address to
and President of the Republic feedback@livemint.com.
of Senegal, H.E. Macky Sall,
and the chairperson of African It is our policy to promptly
respond to all complaints.
Union Commission, H.E. Readers dissatisfied with the
Moussa Faki Mahamat, in a response or concerned about
statement on 28 February. “... Mint’s journalistic integrity may
all people have the right to write directly to the editor by
cross international borders sending an email to
during conflict, and as such, asktheeditor@livemint.com
should enjoy the same rights Mint’s journalistic Code of
to cross to safety from the con- Conduct that governs our
flict in Ukraine, notwithstand- newsroom is available at
ing their nationality or racial www.livemint.com
identity,” they added.

FOR ANY QUERIES/DELIVERY ISSUES

CALL: 60004242, Monday-Saturday, 10am-6pm (Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad, Pune and Chandigarh) MAIL: delivery@livemint.com TO SUBSCRIBE: Give a missed call on 7039035039 or visit www.mintreaders.com or write to us at subscription@livemint.com

First published in February 2007 to serve as an unbiased and clear-minded chronicler of the Indian Dream.
SRUTHIJITH KURUPICHANKANDY (EDITOR); PUBLISHED/PRINTED BY DINESH MITTAL ON BEHALF OF HT MEDIA LTD, 18-20 Kasturba Gandhi Marg, New Delhi 110001
Printed at HT Media Ltd presses at •Plot No. 8, Udyog Vihar, Greater Noida, Distt Gautam Budh Nagar, Uttar Pradesh 201306; •MNSPrinters Pvt. Ltd, 345/4, Bhatrahalli, Near KR Puram RTO, Old Madras Road, Bangalore 560049; •Saraswati Print Factory Pvt. Ltd, 789, Chowbhaga (W), Near China Mandir, Kolkata 700 105; •MNSPrinters Pvt. Ltd, 76/1, Poonamallee High Road, Velappanchavadi, Chennai 600077; •
Bhaskar Print Planet, Survey No. 148P, Changodar Bavla Highway, Sanand (Tal), Distt Ahmedabad, Gujarat. •Jagati Publications Ltd, Plot No. D75 & E52, APIE Industrial Estate, Balanagar, Rangareddy Distt. Hyderabad 500037 *Also available in Chandigarh and Pune.
RNI Registration DELENG/2007/22485; Mint welcomes readers’ responses to all articles and editorials. Please include your full name, address and telephone number. Send in your views to the editor at letters@livemint.com. ©2021 HT Media Ltd All Rights Reserved
LIVEMINT.COM CORPORATE THURSDAY, 3 MARCH 2022
NEW DELHI 03

Lenders prefer outside Consumer cos fear war could Home services
platform Urban
inflate edible oil prices, too Company
IBC biz rescue: Experts Suneera Tandon
suneera.t@livemint.com
NEW DELHI
launches PSOP
Anuj Suvarna
anuj.s@livemint.com

T
he ongoing Ukraine- BENGALURU
Russia conflict could put
IBC is seen as the last option when other turnaround options have failed
H
further pressure on pri- ome services market-
ces of edible oil, said packaged place Urban Company
foods companies in India. (formerly UrbanClap)
Gireesh Chandra Prasad Ukraine and Russia are large has announced a stock owner-
gireesh.p@livemint.com sunflower oil producing coun- ship plan worth ₹150 crore for
NEW DELHI tries, fulfilling a significant its service providers over the
chunk of global demand for the next five to seven years.

L
enders and corporate restructuring edible oil. The platform had received
experts are increasingly choosing India consumes an estimated the board’s approval for the
to rescue companies outside the 2.5-3 million tonnes of sun- India consumes an estimated 2.5-3 million tonnes of sunflower first tranche worth ₹75 crore, it
Insolvency and Bankruptcy Code flower oil per annum. Nearly oil per annum. Nearly 70% of this comes from Ukraine. BLOOMBERG said.
(IBC) without the judicial delays 70% of this comes from Urban Company will set up
and huge haircuts they are forced to take Ukraine. Ukraine, and Russia going to be really challenging lysts at S&P Global Platts said in a process to grant these stocks,
once a company goes into formal bank- accounted for nearly 13% of all situation for processed foods a 1 March note. Sunflower seed taking into account both the
ruptcy resolution, according to experts. of India’s edible oil imports in companies,” said Mayank Shah, crushing plants have stopped performance of service part-
The preference for investors and lenders 2021, supplying 1.6 million ton- senior category head at biscuit operations in Ukraine, they ners and
to deal with industrial stress out of bank- nes, according to a report by maker Parle Products. said. their lon-
ruptcy tribunals shows that the IBC is Reuters. The maker of ParleG biscuits As supply of sunflower oil gevity on
increasingly seen as the last option—when Companies across packaged uses multiple edible oils in its tightens, companies are likely the plat-
other corporate turnaround options have cooking oils and products, which it to substitute it with other edi- form, it said.
not worked out. A Reserve Bank of India This also reflects in the absence of a surge in bankruptcy cases after the one-year processed foods Companies said can easily be ble oils, Shah said. “That’s “Urban Company’s partner
(RBI) scheme rolled out in 2019 has acceler- suspension of creditor action against corporate defaulters was lifted last March. MINT anticipate both an across packaged used as a substi- where we will see the impact in stock ownership plan (PSOP)
ated the trend, experts said. This also impact on their cooking oils and tute for sunflower pricing,” he said. will help scores of service part-
reflects in the absence of a surge in bank- To be sure, the IBC has helped reduce for the others totalling a debt size of around direct sourcing processed foods oil. “So, we are not Branded sunflower oil prices ners become shareholders of
ruptcy cases after the one-year suspension stress in India’s banking system, with sev- ₹7,000 crore, Gangwal said. for the commod- directly getting have already increased in the the company, thereby ena-
foresee an impact
of creditor action against corporate default- eral large cases getting resolved under the In a recent example of successful, out-of- ity as Russia impacted but we past one year, going up 39% bling broad-based wealth cre-
ers was lifted last March, said experts. tribunal monitored process. RBI data IBC restructure, Jain Irrigation Systems Ltd, wages war on on their direct are going to be between January 2021 and Jan- ation through equity sharing.
“The IBC is not a panacea for all. It is a showed that gross non-performing assets a listed company, informed stock exchanges Ukraine, as well as sourcing for oil indirectly affected uary 2022, according to data by This is perhaps the first of its
long-drawn process; hence many lenders of scheduled commercial banks have on 12 February of approval of a restructuring a jump in prices of at least as far as the retail intelligence platform kind plan globally, where gig
and investors are actively backing corporate declined from ₹9.3 trillion as of the end of plan with lenders and, subsequently, of allot- other edible oils as two commodities Bizom, which works with mil- workers become shareholders
restructuring outside the IBC for a quicker March 2019 to ₹8 trillion as of July 2021. ment of equity shares to lenders. Experts demand for other commodities of wheat and sunflower oil are lions of kirana stores. of the very platform they work
and smoother resolution of issues. Many Brescon has, in the past few years, pointed out that the execution of quick turn- goes up. concerned,” Shah told Mint. “With the Ukraine-Russia with. This will allow our ser-
believe that under a few special situations, engaged in four corporate turnaround around ensures financial benefits to all “There can be a major Ukraine is the top exporter of crisis, we could see further vice partners to benefit from
providing financial backing to a stakeholders, including limited impact on all food companies sunflower oil globally. Russia’s pressure as India imports sig- the company’s growth in the
distressed company under new QUICK SOLUTION haircut and provisioning for which are using any sort of edi- invasion of Ukraine has “signif- nificant volumes of these from coming years,” said Raghav
management could be a better lenders, an overall increase in ble oil because edible oil prices icantly” disrupted the Ukrain- Ukraine,” Bizom said in data Chandra, a co-founder of
choice than taking it to the LENDERS seek to EXPERTS say the HOWEVER, the market capitalization for the will go up. If this lasts long it’s ian sunflower oil industry, ana- shared with Mint. Urban Company.
bankruptcy tribunal and hav- avoid judicial delays
and huge haircuts
execution of quick
turnaround ensures
IBC has helped
reduce stress in
shareholders while retaining
ing to deal with delays and hair- they are forced to financial benefits to India’s banking honest management and tax
cuts,” said Nirmal Gangwal, take under IBC all stakeholders system revenue to the exchequer.
managing partner, Brescon & Shareholders and lenders
Allied Partners LLP, which spe- prefer solutions such as refi-
cializes in handling businesses in distress. transactions in which a solution was nancing and recapitalization in which new
“The June 2019 circular of RBI is a well- achieved outside the National Company lenders or investors provide more flexibil-
received alternative to the IBC for the Law Tribunal (NCLT) framework. Out of ity to the company in terms of repayment,
restructuring process,” said Gangwal. The those, financial capital was raised in two said Nikhil Shah, managing director, Alva-
Central Bank had provided a stressed asset cases aggregating around ₹4,000 crore rez & Marsal, who leads the turnaround and
resolution framework on 7 June 2019. and restructuring under the RBI guidelines restructuring practice in India.

White Oak Capital picks 2% stake in Bikaji

Debjyoti Roy AIF-I, the people cited above Axis Asset Management snacks and sweets, according
debjyoti.roy@livemint.com said on condition of anonym- remained unanswered till to Frost and Sullivan report. It
NEW DELHI ity. White Oak Capital is said to press time. is the largest manufacturer of
have led the round. The company, which is also Bikaneri bhujia, soan papdi,

W
hite Oak Capital
Management has
picked up a minor-
ity stake in ethnic snacks
maker Bikaji Foods Interna-
tional Ltd at a valuation of
around ₹7,000 crore ($923
million) ahead of its planned
initial public offering (IPO),
two people familiar with the
matter said.
White Oak Capital, a bou-
tique investment manage-
ment and advisory firm set up
by former Goldman Sachs
executive Prashant Khemka,
and a few unidentified family
offices, jointly picked up
around 2% stake worth around
₹140 crore ($18.4 million) held
by Axis New Opportunities
Axis New Opportunities backed by home-grown private packaged rasgulla, and gulab
AIF-1 is a public markets-fo- equity fund Lighthouse Funds, jamun. Shiv Ratan Agarwal
cused fund managed by Axis filed its red herring prospectus launched the Bikaji brand in
Asset Manage- (DRHP) last week 1993. It had operations in 22
ment Co. Ltd. to raise ₹1,000 states and three Union territo-
The fund had White Oak crore through an ries as of 30 September 2021. It
picked up a stake Capital has initial also exports its prod-
in the snacks been investing public ucts to 35 countries
maker in 2019. largely in offering accounting for 4.6%
White Oak (IPO). of its product sales.
IPO-bound
Capital has been The IPO is Bikaji’s operating revenue
investing largely or publicly listed expected to value grew 22% to ₹1,311 crore in
in IPO-bound or companies the company FY21 from ₹1,075 crore in
publicly listed around $1 billion FY20, while net profit grew
companies such (₹7,500 crore). over 60% from ₹56.4 crore to
as Rategain Travel Technolo- Notably, Lighthouse too ₹90.3 crore during the period.
gies Ltd, Shaily Engineering increased its shareholding in It reported a net profit of ₹40.9
Plastics Ltd, and Newgen Soft- the company last year at a val- crore against an operating rev-
ware Technologies Ltd. uation of ₹5,500 crore. enue of ₹771.7 crore during the
Email queries sent to Bikaji Bikaji is one of India’s lead- six months ended September
Foods, White Oak Capital, and ing FMCG brands selling 2021.

Navi takes up 75,000 sq ft B’luru space

Madhurima Nandy Startech, a Grade A office com-
madhurima.nhtlive.com plex in Bengaluru’s Koraman-
BENGALURU gala area. Cab hailing firm Ola
had also leased around

F
lipkart co-founder Sachin
Bansal’s financial services
startup Navi Technolo-
gies, which is gearing up for a
public listing, has taken up
75,000 sq ft of office space on
lease from IndiQube, in subur-
ban Bengaluru, according to
two people familiar with the
transaction.
Managed office provider
IndiQube has about 1.5 lakh sq
ft of office space across two
buildings at AMR Tech Park in
Hosur Road. It has leased one
building to Navi for a nine-year
tenure. The company will
occupy it in April once the fit-
outs are done.
Flipkart co-founder Sachin Bansal’s financial services startup will
occupy the office space in April
“Navi has taken up a new
ground-plus-four storey build-
ing, which will be used largely
for backoffice operations and as
a delivery centre. It can house
around 1,000 employees,” said
the one of the persons men-
tioned above, who didn’t wish
to be named. Spokespersons of
Navi and IndiQube did not
respond to queries.
In 2021, Navi had taken up
around 110,000 sq ft for its cor-
porate office at Prestige RMZ
400,000 sq ft of space in the
same complex. Bengaluru-
based Navi, which was set up in
2018 and turned profitable in
2020-21, is preparing for an ini-
tial public listing (IPO).
Navi passed a special resolu-
tion to convert the company
from private to a public limited
entity and rename it to Navi
Technologies Limited, a move
that will pave the way for the
company to float an IPO soon,
news portal Entrackr reported
in February. During 2022-24,
startups are expected to lease
29 million sq ft, according to a
report by property advisory
Colliers and CRE Matrix.
04 THURSDAY, 3 MARCH 2022
NEW DELHI MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

55,468.90 -1.38 16,605.95 -1.12 14,199.80 -0.76 40,063.9 0.03 16,855.70 -0.95 23,316.56 -0.17 26,631.33 -0.12
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

56,247.28 55,629.30 16,793.90 16,593.1 14,307.95 14,161.70 40,052.10 39,798.95 17,016.55 16,826.25 23,355.61 23,258.10 26,662.33 26,573.08
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

55,755.09 55,020.10 16,678.50 16,478.65 14,265.50 14,104.75 40,267.60 39,687.50 16,930.20 16,732.05 23,410.00 23,160.06 26,837.08 26,481.15

m MINT SHORTS Challenges galore for Manufacturing PMI saw

Hedge funds close short bets rise, but threats abound
on Japanese bonds in a hurry
Hedge funds may have helped fuel the biggest gain in
Japanese bond futures in a year after money markets
trimmed bets on the pace of US interest rate hikes. Ten-
autos after a dull Feb Harsha Jethmalani
harsha.j@livemint.com
Low hopes
Indian manufacturers are less
Vineetha Sampath optimistic in their business

B
year futures jumped 58 ticks to 151.17 on Wednesday, the usiness activity in India’s man-
largest one-day rise since March 2021. Commodity trad- vineetha.s@livemint.com Hits and misses ufacturing sector saw a mar-
outlook compared with
counterparts in other nations.
ing advisers may have unwound bearish bets on the secu- In February, sales of both passenger and commercial vehicle segments were ginal improvement in Febru- Future output index (unadjusted)

T
rities, according Bloomberg data. Overseas investors have he Nifty Auto index was the good but that of tractors and two-wheelers were disappointing. ary. The seasonally adjusted IHS India Global
sold 5.03 trillion yen ($43.7 billion) of the futures since biggest loser among sectoral Year-on-year growth Month-on-month growth (in %) Markit India Manufacturing Pur- Emerging markets Asean
March delivery became the front-end contract in Decem- indices on Wednesday, falling 60
chasing Managers’ Index (PMI) rose 75
ber, exchange data showed. Global funds accounted for by almost 3%, on a day when to 54.9 from 54 in January, aided by
February 2022 volumes
67% of transactions involving the derivatives last year, the Nifty50 index fell by 1%. modest rise in the new orders com- 70
40
the figures show. Debt markets globally are reflecting The jitters are understandable. For ponent as the impact of Omicron on
bets for slower tightening as traders anticipate the one, the Ukraine war has ignited the pri- demand conditions faded.
65
Ukraine war to make central banks’ response more meas- ces of commodities, including crude oil 20 A reading above 50 indicates
ured. In Japan, bond bulls have the added benefit of a and aluminium, both of which have a expansion. For the eighth month in a
prolonged period of accommodative policy.BLOOMBERG bearing on the automobile sector. As 0 row, the headline figure has 60
such, rising costs are a worry. “Our Com- remained in the expansion zone and
modity Cost Index has started inching up above its long-run average of 53.6. 55
-20
and is 50-100 basis points (bps) higher for But the good news ends here. A
PVs and 150-200 bps higher for 2Ws cur- closer look at the sub-indices data
rently versus the Q3FY22 levels,” said -40 does not paint a bright picture for the 50
analysts from Nomura Financial Advisory sector’s outlook.
and Securities (India) Pvt. Ltd in a report -60 For instance, the survey for Febru- 45
Escorts Jan 2020 Feb 2022
on 1 March. One basis point is 0.01%. PVs Maruti
Suzuki
M&M Tata Tata Ashok
Motors - Motors - Leyland
Eicher Hero TVS
Motors MotoCorp Motor Co.
Bajaj
Auto
ary showed a further increase in
Source: IHS Markit
and 2Ws refer to passenger vehicles and PV CV average input costs faced by Indian
two-wheelers, respectively. “Hence, we PV stands for passenger vehicle, CV for commercial vehicle. Source: Company data manufacturers. Even though the SATISH KUMAR/MINT

think that further price hikes may be input price index softened to a six- increased costs is still missing among
required in Q1FY23F to support margins SATISH KUMAR/MINT
month low, it remained above the Indian manufacturers. The output
if the current trend persists,” the broker- partly made up for domestic fall in 2Ws. 2Ws and entry segment cars, as oil prices historical average. price sub-index of PMI fell back to 51
age said. CVs are on a good footing. “The growth are likely to rise in March,” said Nomura. “The fact that new covid infections from 51.7 in January.
Moreover, it is not as if February vol- in the CV segment is primarily because of “The freight rates for automakers will in India remain low bodes well for However, according to Miguel
ume numbers are inspiring. PVs and a cyclical upturn. The segment is seeing increase, which will weigh on margins,” the manufacturing outlook. But Chanco, chief emerging Asia econo-
commercial vehicles (CVs) have done more replacement demand. With eco- Baxi said in this context. there are headwinds,” said Darren mist at Pantheon Macroeconomics,
The Bloomberg Commodity Spot Index, which tracks 23 well, but 2Ws and tractors showed no sign nomic activity picking up and increased What’s more, there is a possibility of Aw, Asia economist at Capital Eco- the outlook for inflation remains hot.
futures contracts, climbed 4.1% on Tuesday. AFP
of recovery. Higher demand for personal spend on infrastructure, the demand the semiconductor crisis worsening nomics Ltd. He feels that companies have been
mobility, along with easing of the semi- momentum is likely to continue,” said because of the ongoing geopolitical ten- “For a start, today’s data also show sitting on substantial increases in
conductor crisis aided the PV segment. In Varun Baxi, analyst at Prabhudas Lillad- sions. “Ukraine supplies specialty gases that the supplier delivery times index costs over the past 18 months and are
February, Mahindra and Mahindra Ltd’s her. Also, remote working has acceler- required by the chip-making industry. remained below 50 for unlikely to continue to
Commodities jump most since (M&M) domestic PV volumes grew by ated the use of e-commerce platforms, Thus, there is potential of an extension of the 12th consecutive Companies have be that way. He expects
2009 as war threatens supply 80% year-on-year (y-o-y), the stress in the supply month in February. been sitting on manufacturers to raise
Commodity prices soared the most since 2009 as Rus- helped by utility vehicle ROUGH ROAD AHEAD chain of semiconductors, This suggests that deliv- substantial their selling prices fur-
sia’s invasion of Ukraine threatens key supplies of energy, sales. Tata Motors Ltd’s which are key to manufac- ery times are still increases in costs ther.
crops and metals that were already tight as major econo- domestic PV sales rose 47% THE Ukraine war has WHILE PVs and CVs IT is possible that turing autos and other elec- lengthening. And the However, unless
for 18 months and companies significantly
mies emerged from the pandemic. The Bloomberg Com- y-o-y. Maruti Suzuki India ignited commodity
prices which have a
have done well, two-
wheelers and
the semiconductor
crisis may worsen
tronic equipment in the Russia-Ukraine war has
modity Spot Index, which tracks 23 futures contracts, Ltd’s domestic PV volumes bearing on the Asia-Pacific region,” said a added to downside are unlikely to hike prices, their profit
tractors showed no due to the ongoing
climbed 4.1% on Tuesday. The gauge has more than dou- fell by 7.5% y-o-y, but an all- automobile sector signs of recovery geopolitical tensions report by Moody’s Analyt- risks,” he said in a report continue doing so margins would remain
bled from a four-year low reached in March 2020, during time high export meant flat- ics. on 2 March. under pressure.
the early days of the health crisis. The sweeping sanctions tish overall volumes. On the flip side, there It should be noted All these factors have
on Russia from the US, Europe and Asia, as well as sur- Meanwhile, a high base and muted thereby driving growth for CVs. could be an accelerated conversion to that the ongoing Russia-Ukraine kept manufacturers’ degree of opti-
ging costs to send ships into the war zone, are bringing rural demand meant M&M and Escorts True, the expected healthy rabi crop electric vehicles (EVs) once the retail fuel conflict has pushed Brent crude oil mism regarding business outlook
trade deals with the country to a virtual standstill. Russia Ltd’s tractor volumes dropped by 27% harvest boosting rural cash flows bodes prices are increased. In February, Tata price to over $110/barrel. At a time below its long-run average. The
is a major supplier of crude, natural gas, grains, fertilizers and 46% y-o-y, respectively. The domes- well for 2Ws particularly. However, Motors reported 479% y-o-y growth in EV when cost inflation is already ele- future output index for India at 57.3
and metals such as aluminium. The war is worsening a tic 2W volumes of TVS Motor Co. Ltd, higher Brent crude prices (over $110 a volumes, but it remained flattish sequen- vated, a further increase dampens [see chart] is lowest compared with
global cost-of-living crisis that has sent inflation rates in Hero MotoCorp Ltd, and Bajaj Auto Ltd barrel at the time of printing) would mean tially. “Despite supply constraints, EV 2W the prospects of the manufacturing the future output index readings of
the US to the highest since 1982 and has created a fell by 11%, 32%, and 35% y-o-y, respec- a rise in the cost of ownership and that is sales continued to inch up (~3.3% in Feb- sector, which relies on crude-based global manufacturing, emerging
dilemma for central bankers worldwide as they weigh the tively. Bajaj’s steeper fall is due to semi- a risk for 2Ws. “We believe a slowdown in ruary versus 2.7% in January). We expect raw materials, too. markets and Asean PMIs. Asean is
need to increase borrowing costs against the risk of stunt- conductor shortages as a key supplier mass consumption is a key risk to watch further ramp up in the EV mix in March What’s more, the confidence to short for Association of Southeast
ing economic growth. BLOOMBERG faced a huge shortfall. Better exports out for as we go into FY23F, especially for 22,” said the Nomura report. meaningfully pass on the burden of Asian Nations.

Mark to Market writers do not have positions in the companies they have discussed here

US job growth
above forecast
Nothing to hide in NSE case, says Tyagi More foreign funds likely to exit
in February
Bloomberg
Jayshree P. Upadhyay
jayshree.p@livemint.com
India, S Korea owing to oil shock irregularities and governance said. “We have had nothing to
lapses at the NSE, attracted a hide. Our job has been objec-
NEW DELHI fair bit of criticism. Sebi tive. Never a dull day on the job
feedback@livemint.com imposed fines and bans that at Sebi. Regulatory side Bloomberg $9.3 billion so far in 2022, the

T
he outgoing chairman of were far less than the punitive enforcement and clearing the feedback@livemint.com most among emerging Asia

U
S companies in Febru- the Securities and action taken in other cases. backlog of cases needs work,” markets tracked by Bloomberg,

ary added more jobs
than forecast as covid-19
cases dropped and restrictions
eased, encouraging more
Americans to work.
Businesses’ payrolls rose by
475,000 last month, according
to ADP Research Institute data
released on Wednesday. The
median forecast in a Bloomberg
survey of economists called for
a 375,000 rise. The greater-
than-expected job growth
points to a labor market
rebounding strongly from the
Omicron variant’s spread in
January, which led to business
closures and kept many work-
ers at home sick.
Exchange Board of India
(Sebi), Ajay Tyagi, on Wednes-
day addressed the criticism the
regulator received on its
recent order against NSE.
“I want to say that Sebi tried
in earnest to resolve the NSE
co-location case and govern-
ance lapses at the exchange,”
he said in a press conference
after handing over charge to
Madhabi Puri Buch.
“It was a complex matter.
We came out with orders
within our remit and powers,”
he said.
Tyagi, a 1984 batch IAS offi-
cer, was appointed chairman
on 1 March 2017 and served for
Outgoing chairman of Sebi
Ajay Tyagi. MINT
five years. He was eligible for
another extension, but the
finance ministry chose to
replace him with Buch, a
former banker.
It is Sebi’s February order
on NSE that may have scuttled
Tyagi’s chances of staying on.
The order, around hiring
A
The order also failed to iden- he said. s the war in Ukraine and excluding China. South Korean
tify an unknown On making the sanctions on Russia stocks have seen $3.1 billion
third person who According to splitting of the drive a relentless surge withdrawn. “While foreign
received the Tyagi, all that has posts of chairman in oil prices, equities in India ownership of markets like
exchange’s data come out in the and managing and South Korea are looking India, Korea has declined amid
from former chief public domain so director post at more vulnerable. recent selling, foreigners’ hold-
executive Chitra listed companies With Brent crude crossing ing of equities is still much
far on the NSE
Ramkrishna. mandatory, Tyagi $110 a barrel, that clouds the larger currently vs pre-covid
“Covid also co-location case said that one has outlook for two of Asia’s larger levels due to valuation-driven
delayed the latest is because of Sebi to be practical oil importers —which are also Indian stocks have seen $9.3 bn gains in these markets,” Nom-
order against and cannot be a home to the region’s worst- of foreign funds exit in 2022. AP ura strategists led by Chetan
NSE. Maybe we purist as 46% performing currencies this Seth wrote in a report Monday.
did not do enough and missed were still to comply. “We have year. While stocks in Mumbai ment. Foreign funds are net Foreign holdings of shares in
something but let other to live in a practical world and and Seoul have already taken sellers of Indian and Korean South Korea and India were at
authorities do what they have can push only to an extent. It hits from concerns over Fed- stocks this year and Nomura $620 billion and $639 billion as
to,” Tyagi said. was made voluntary with the eral Reserve interest-rate hikes Holdings Inc. sees room for fur- of December and January
“All that has come out in the hope that shareholders and and a related technology sell- ther declines after Russia’s respectively, more than 30%
public domain so far on NSE directors will push for it,” he off, analysts see both as more invasion of Ukraine. Indian higher than 2019 levels for both
case is because of Sebi,” he said. susceptible to risk-off senti- equities have seen an outflow of markets, the report added.

How much of payments firm BharatPe does co-founder Ashneer Grover own?
FROM PAGE 1
between the co-founders of the
company, according to multiple
people close to the development,
who spoke on the condition of
anonymity. The resolution or the
wrangling over it will ultimately
determine what share of the firm’s
equity actually belongs to Grover.
It will also determine the fate of
BharatPe’s original founder—a
high-school graduate who was
jailed for data theft and deported
from the US—who might be left
with little recourse to secure his
rightful equity stake in the com-
pany.
That person—Bhavin Kolad-
iya—is now a consultant at the
company and has been targeted
in recent statements by Grover
and his wife, Madhuri Jain.
His story might be among the
strangest for any startup
founder in India.
While the details of the story
are sketchy, according to multi-
ple people familiar with the facts,
Koladiya went to the US in 2007
and was running a grocery store
where he started accepting pay-
ments digitally without a license.
This violated data theft and mail
fraud laws in the US, and he
ended up getting arrested and
jailed. After judicial proceedings
that went on for 22 months, he
was let go with a fine of $100 and
deported back to India.
Back in the country, Koladiya
started going to hackathons and
grasped the power of the UPI
network. He teamed up with
Shashvat Nakrani, an IIT Delhi
student at the time and the son
of his school teacher from back
home in Bhavnagar. The duo
incorporated BharatPe in March
2018 with equal shareholding.
At the time, Koladiya was the
face of the firm and used to
speak with investors to raise
funds, according to people who
recalled such meetings.
In June 2018, Grover joined
the duo as a co-founder. Unlike
Koladiya, with his chequered
past, and Nakrani, who was rela-
tively inexperienced, Grover
was a high-profile executive.
An alumnus of IIT Delhi and
IIM Ahmedabad, he worked at
Kotak Mahindra’s investment
banking division before moving
to American Express in 2013,
where he led startup invest-
ments for the card network in
India. He led Series B invest-
ment in MobiKwik on behalf of
American Express. He also
worked at Grofers post that and
then joined PC Jewellers.
When Grover joined, he got
32% equity, Nakrani held 25.5%,
and Koladiya remained the larg-
est shareholder, with a 42.5%
stake, according to Registrar of
Companies filings from then.
However, six months later, in
December 2018, just before and other stakeholders reached company is on account of the stake shareholding pattern changed.
Sequoia came on board as an an understanding to minimize held on behalf of Koladiya, the Grover and Nakrani now owned
investor, Koladiya’s name went Koladiya’s public involvement people said. If this is added to the 29.1% and 23.3%, respectively, in
missing from the founders’ list. with the firm. The arrangement 1.4% set to be clawed back by the the company. Koladiya’s name dis-
And ever since then, Grover has involved him transferring his company, as Mint reported on appeared from the cap table, and he
become the face of stake to Grover, Wednesday, Grover might be left also became a consultant to the
the company. Koladiya is said to Nakrani, Nakrani’s owning 3.5-4% of the company company so as to avoid being on the
What hap- still own 8.5% of father (also his ultimately. One angel investor, rolls of the company he founded.
pened then is the company erstwhile school- who spoke on the condition of Grover, Koladiya, Nakrani
unclear but two through equity teacher) and some anonymity, said the founders had and Harshjit Singh Sethi from
people who are in
held on his behalf angel investors. entered into a side agreement Sequoia did not respond to
a position to know, According to two regarding the same. According to requests for comment. But if
and spoke on the by the other two people with knowl- him, the understanding was that Koladiya indeed holds some
condition of ano- co-founders edge of the arrange- the two co-founders would hold instrument by way of a formal
nymity, said that ment, Koladiya still the equity on behalf of Koladiya. agreement that can call back his
owning to dis- owns 5.75% of the It’s unclear how the agreement equity stake from the other
comfort on the part of large company through equity held on envisioned compensating him for co-founders, BharatPe’s cap
institutional investors to have a his behalf by the other two the same in the future. table might go through another
person with a jail term in the US co-founders. And out of the 8.5% Post the investment round by churn. But it’s unclear if Kolad-
on the cap table, the founders owned by Grover, 3.5-4% of the Sequoia in December 2018, the iya holds any such instrument.
 SUMMIT & AWARDS
INVESTING FOR INDIA
14 TH - 1 5 TH M A R C H 202 2 I M U M B A I

T R A N S F O R M I N G I N D I A T H R O U G H S T R AT E G I C I N V E S T M E N T S

E M I N E N T PA N E LI S T S

Amit Verma Amrit Acharya Ankur Gupta Ankur Thadani Deep Gupta Dhanpal Jhaveri Hetal Dalal
Managing Partner, Co-founder and CEO, Managing Partner, Partner, TPG Growth Managing Director, Vice Chairman, President and COO,
Quadria Capital Zetwerk founder Real Estate, and RISE Fund Macquarie Everstone Group Institutional Investor
Brookfield Asset Infrastructure and Advisory Services
Management Real Assets (IiAS)

Indranil Ghosh Mukund Rajan Nagesh Basahanvalli Naveen Tiwari Neha Grover Nikhil Srivastava Nipun Sahni
Managing Director Chairman, ECube Group CEO, Greaves Founder, inMobi South Asia, Regional Partner and Partner, Asia Real
and India Head, Investment Advisors Cotton Limited Lead, Private Equity Managing Director, Estate - Apollo Global
Cerberus Funds, IFC Head of India Management
Private Equity, PAG

Kavita Saha Padmanabh Sinha Puncham Mukim Radhika Gupta Rishi Pardal Ritu Arora Shweta Bhatia
Managing Director, ED and CIO, Private Managing Director, Managing Director MD & CEO, United CEO and CIO, Asia, Partner & Head of
CPP Investments Equity, NIIF Everstone Capital and CEO, Edelweiss Breweries Ltd. Allianz Investment Technology
Advisors AMC Management Investments, India,
Eight Roads

Sudhir Variyar Swaroop Mohanty Vidit Aatrey Vikas Agnihotri Vishal Bali Vivek Vikram Singh
MD & Deputy CEO, CEO, Mirae Asset Founder and CEO, Operating Partner, Executive Chairman, Managing Director
Multiples Alternate Global Investments Meesho SoftBank Investment Asia Healthcare and Group CEO, Sona
Asset Management Advisers Holdings Comstar
Private Limited

www.livemint.com
Scan the QR code or visit the website link to Register Now
http://events.livemint.com/investmentsummit/ mint.live livemint livemint live_mint

Register now for the in-person event

06 THURSDAY, 3 MARCH 2022
NEW DELHI CORPORATE LIVEMINT.COM

As Moscow
batters Kyiv,
both ready
for talks
FROM PAGE 1
service. Pieces of the building
were strewn across the streets.
In the northern city of Cherni-
hiv, two cruise missiles hit a hos-
pital, according to the Ukrainian
Feb trade deficit expands as ‘Rlys to make 90%
allocation for pvt
tensions boost commodities sector in R&D’
Gulveen Aulakh
gulveen.aulakh@livemint.com
NEW DELHI
Value of inbound shipments soared due to rising prices, while domestic demand stayed tepid
T
he government will bring
out a policy on promot-
Dilasha Seth & Ravi Dutta Mishra ing research and devel-
BENGALURU/NEW DELHI opment (R&D) in railways soon
where 90% of the government

UNIAN news agency, which
quoted the health administration
chief, Serhiy Pivovar, as saying
authorities were working to
determine the casualty toll.
In besieged Mariupol, at least
one teenager died and two
more were wounded by appar-
ent Russian shelling.
The three boys were rushed to
a regional hospital. One had lost
his legs in the attack and died
soon after arriving, according to
an Associated Press reporter at
the scene. Family members told
the AP the three had been play-
ing soccer near a school when the
shelling hit.
The attacks came a day after
Russia, intensifying its attacks
on cities, bombed Kharkiv’s
central square — where at least
six people were reported killed
— and struck Kyiv’s main TV
tower, where authorities said
five died. Kyiv’s nearby Babi
Yar Holocaust memorial also
came under fire, but the main
monument was not damaged.
Zelenskyy expressed out-
rage at the attack near Babi Yar,
where Nazi occupiers killed
more than 33,000 Jews over
two days in 1941.
Even as Russia pressed its
assault, Kremlin spokesman
Dmitry Peskov said a delega-
tion would be ready later in the
day to meet Ukrainian officials.
Ukrainian foreign minister
Dmytro Kuleba also said his coun-
try was ready but noted that Rus-
sia’s demands have not changed
and that he wouldn’t accept any
ultimatums.
T
he gap between India’s mer- allocation for R&D will go to the
chandise exports and imports private sector, said railways,
widened in February after communications and informa-
touching a five-month low in tion technology minister Ash-
January, official data showed wini Vaishnaw. Minister for railways and IT
on Wednesday, as the value of inbound “We are starting something Ashwini Vaishnaw. PTI
shipments soared due to rising crude in railways very soon. In
and commodity prices amid escalating another seven or eight days we revenue generator.
geopolitical tensions and the modest will be launching that new pol- “Thought process on the use
revival in domestic demand post the icy where private sector R&D of spectrum is changing. For a
Omicron wave. would become an integral part long period, spectrum was
India’s merchandise exports grew the or rather major part of R&D viewed as a revenue-generat-
slowest in five months at 22.36% in Feb- budget. We do hope that going ing resource. The last two years
ruary to touch $33.81 billion, while forward, probably 90% of rail- have shown a public good ele-
imports grew by 35% to $55.01 billion, ways R&D budget would be in ment of spectrum,” he said,
leaving a trade deficit of $21.19 billion the private sector, compared referring to the increased use of
during the month, up from $17.42 billion with 100% in the public sector digital services on the back of
in January, preliminary data released by today,” the minister told the data networks during the pan-
the ministry of commerce and industry concluding session of a post- demic.
showed. Economists have warned that the economic uncertainty due to the Ukraine war could worsen the trade deficit.. BLOOMBERG budget webinar on technology- “I am happy to observe that
While data released on Wednesday enabled development on there is a broad consensus on
showed that India’s exports are set to ity in the economy, were $3.01 billion billion in February compared with $2.4 grew by 33.7%, 32.84% and 31.34% Wednesday. spectrum management issues
exceed the $400 billion target for lower than the previous month at $31.61 billion in the previous month as domes- respectively. “With monthly exports He added that a similar which are basically leading to
2021-22, economists cautioned that ris- billion. India’s spend on petroleum tic demand recovered. However, it was crossing the $30 billion mark for the 11th approach of the public or to
ing economic uncertainty led by the products rose to $15.04 billion in Febru- about 11.45% lower than the corre- consecutive time during the fiscal, we bringing in pri- Vaishnaw said the t e c h n o l o g y
Russia-Ukraine conflict could worsen ary against $11.6 billion in January. sponding month last year. are on course to cross the $400 billion vate sector in new policy to improvement or
the trade deficit and widen current Petroleum imports were 66.5% higher With just one month to go for the fis- exports target for the fiscal,” said A. Sak- R&D was required involve private technology devel-
account deficit going forward, as inter- compared with the same month last cal to end, India’s exports in the April- thivel, president, Federation of Indian to be followed in sector in railways’ opment. We now
national oil prices are likely to remain year. February period touched $374.05 bil- Export Organisations (FIEO). all sectors, noting
R&D will be out in need to convert in
elevated, while supply side bottle- Exporters expressed concern that the “silo- clear policy state-
necks and rising freight cost could SLOWING DOWN over the worsening Russia-Ukraine breaking” initia- another seven or ments which can
hurt exports. situation and its impact on ship- tive had already eight days then be imple-
“The duration of the Russia- MERCHANDISE IMPORTS grew by THE trade deficit in ACCORDING to the ments going forward. been taken by the mented,” he
Ukraine conflict, and its impact on exports grew the
slowest in five
35% to $55.01 billion,
leaving a trade
January was $17.42
billion, as per
data, India’s exports
are set to exceed the
“Impact (of uncertainty over defence and space added.
commodity prices, especially crude months at 22.36% in deficit of $21.19 preliminary data $400 billion target Ukraine war) on engineering goods sectors. On the road map ahead, min-
oil, will determine the magnitude of February billion in the month from the ministry. for 2021-22 exports is yet to be Vaishnaw sought sugges- ister of state for information
the merchandise trade deficit in assessed…Among the CIS countries, tions and recommendations technology Rajeev Chandrase-
March 2022, even as year-end ful- Russia is the biggest export market from the industry to further khar said that there should be
filment of export orders may provide a Even as the US released nearly 60 lion, which is only $25.95 billion short of for Indian engineering goods. Exclu- increase local manufacturing of an urgency to tap the acceler-
buffer,” said Aditi Nayar, chief econo- million barrels from its strategic the $400 billion target set for the fiscal. sion of Russia from the SWIFT payment technology products while ated digitalization opportuni-
mist, Icra. reserves with its allies to stabilize global Besides a 66% growth in petroleum system would, therefore, mean delayed appreciating suggestions on ties. He also stressed the need
While overall imports in February are energy markets, Brent crude oil price exports, the outbound shipments in payment realization for exporters,” spectrum management, with to conduct outcome-based
$3.08 billion higher than January, the touched a nearly seven-year high level February were led by the strong per- Mahesh Desai, chairman, Engineering the changing thought process research and collaboration
non-oil non-gems and jewellery of $113 per barrel on Wednesday. formance of electronic goods, cotton Export Promotion Council (EEPC). on spectrum being now viewed between government and
imports, which signifies industrial activ- Gold imports nearly doubled to $4.6 yarn, and engineering goods, which dilasha.seth@livemint.com as a public good rather than a industry.

Stocks decline, crude, metal prices surge ahead Govt to take a call on LIC IPO
FROM PAGE 1
likely to be extended. As things
stand now, India’s GDP growth
for FY23 will be lower and infla-
tion higher than estimates,”
said V.K. Vijayakumar, chief
investment strategist at Geojit
Financial Services. This is nega-
tive for the stock market.
Among base metals, alu-
minium, copper, zinc, and lead
prices have risen 3.6-15% dur-
ing the last month on the Lon-
don Metal Exchange, with alu-
minium leading the pack.
Notably, aluminium prices,
having gained more than 58%
in the last year, are at multi-
year highs.
Analysts said that interna-
tional sanctions on major met-
als producers in Russia could
squeeze the tight aluminium
market further. The supply of
aluminium already remained
impacted due to higher energy
costs leading to the shutdown
of many smelters. China also
saw smelter closures following
power shortages and its initia-
tives to curtail carbon emis-
sions.
“A conflict escalation may
Analysts said global sanctions on major metals producers in
Russia could squeeze the tight aluminium market further.. REUTERS
see base metal prices climb
higher short-term, and prices
of nickel and aluminium are
climbing already,” said ana-
lysts at Credit Suisse in their
report dated 28 February. The
immediate concern would be
that any cut in Russian exports
would cause shortages, they
added. However, they said that
if commodity exports are unaf-
fected, then prices should sub-
sequently slide as the greater
risk would be to demand
through a potential recession.
Shares of Hindalco Indus-
tries Ltd, National Aluminium
Co. Ltd (Nalco), Vedanta Ltd,
scaled fresh 52-week highs on
Wednesday, having gained
73-112% in the past year.
The Russian invasion of
Ukraine can also mean higher
steel prices in Europe due to
supply disruption. Analysts at
Nomura Research said that
“the most impacted region is
Western Europe, which
accounted for 21% of its
imports from these countries
in CY21. Economic sanctions
on Russia could impact sup-
plies into Europe, potentially
leading to higher pricing in the
region, in their view”.
This, however, may offer an
opportunity for Indian manu-
facturers to ramp up exports to
Europe. New opportunities “Volatility is expected to FROM PAGE 1
may open up in Asia as well. remain high in the near term
Analysts at Edelweiss Secu- given elevated Russia-Ukraine through an offer-for-sale
rities Ltd said that “in the case conflict, upcoming state elec- (OFS) slated for March end,
of domestic players, we see a tion results as well as US Fed aiming to garner as much as
positive impact as Russia has meeting,” said Siddhartha ₹75,000 crore.
emerged as the regional steel Khemka, head retail research, Last week, the Union cabi-
price setter in South-East Motilal Oswal Financial Servi- net approved foreign direct
Asia”. If Russian exports are ces Ltd. If the conflict investment of up to 20% under
curtailed, coupled with the stretches on and keeps energy the automatic route in LIC to
ongoing maintenance activi- prices elevated for long, it may facilitate foreign investment in
ties at Far East impact margins the insurer.
mills and China The rising input and earnings, he The sale of LIC shares by the
focusing on costs still pose added. end of March holds the key for
reducing steel some challenges as The govern- the government to meet its
exports, we may key raw materials ment has been reduced disinvestment target The sale of LIC shares by March end holds the key for the Centre to
see Indian steel monitoring the of ₹78,000 crore for the cur- meet its reduced asset-sales target of ₹78,000 crore for this fiscal.. AFP
such as iron-ore
mills such as JSW geopolitical situa- rent fiscal. The government
Steel and Tata and coal prices are tion closely and initially budgeted ₹1.75 trillion global considerations war- value worked out by actuarial
Steel gaining in on the rise also its economic from asset sales. rant that I need to look at it, I firm Milliman Advisors.
the export mar- fallout. On Finance minister Nirmala wouldn’t mind looking at it Investment bankers advising
ket”, they added. Wednesday, Sitharaman said earlier this again,” she said. She further the government on the share
The rising input costs still Prime Minister Narendra week in an interview with said that the divestment tar- sale have said that the money
pose some challenges as key Modi held a high-level meet- The Hindu Business Line get was not a constraining raised will depend on investor
raw materials such as iron-ore ing with minister for external newspaper that the govern- factor for the government. appetite.
and coal prices are on the rise. affairs S. Jaishankar, minister ment may look at the timing Queries emailed to a finance A total of 10 investment
The weaker domestic demand for commerce and industry of the initial share sale fol- ministry spokesperson on bankers, including Goldman
is keeping a tab on domestic Piyush Goyal, national secu- lowing the war between Rus- Wednesday remained unan- Sachs (India) Securities Pvt.
steel prices. rity advisory Ajit Doval, for- sia and Ukraine. swered till press time. Ltd, Citigroup Global Markets
Metal stocks were the top eign secretary Harsh Vardhan “Ideally, I’d like to go ahead Mint had reported last India Pvt. Ltd and Nomura
gainers among sectors, fol- Shringla and principal secre- with it because it is some- month that the government is Financial Advisory and Securi-
lowed by energy and media. tary to the prime minister P.K. thing we’ve planned for some seeking a valuation of at least ties (India) Pvt. Ltd, have been
However, the rest of the sec- Mishra to discuss the evolving time purely based on Indian ₹15 trillion for LIC based on appointed to manage the LIC
tors ended the day in the red. situation. considerations. But now, if the ₹5.39 trillion embedded share sale.

‘We were able to ensure the evacuation of about 12,000 Indians from Ukraine’
FROM PAGE 1
income of farmers; farmers get-
ting better prices in the market;
more use of scientific methods
in farming by our farmers.
As far as reducing the input
cost of farmers is concerned,
you will see its effect from “Beej
to Bima Yojana” (seed to insur-
ance scheme), minimizing har-
vest and post-harvest losses
and even fertilizer prices. You
will understand it better with
an example. Despite the huge
increase in the prices of fertiliz-
ers across the world, we did not
let the burden fall upon the
farmers and increased the sub-
sidy for DAP fertilisers to 140%,
which is unprecedented.
We have focused on an all-
round strategy to increase the
income of the farmers. For the
first time, we have decided to
keep the MSP at 150% of the
cost of the farmers.
We have worked to
strengthen and expand the sys-
tem of government procure-
ment centres to ensure that
farmers get a fair price in the
market. Today, foodgrain is
being purchased from farmers
by twice the number of govern-
ment procurement centres in
the country compared to
before 2016.
We are investing about ₹1
trillion to develop infrastruc-
ture like food processing and
cold chain. You can see that till
the year 2014, there were only
two mega food parks in India.
But today, the number has
increased to 22.
As far as the impediment in
the form of the repeal of the
agricultural laws is concerned,
I would say that the path may
be different. But our goal is the
welfare of the farmers.
The Opposition is raising
the issue of unemployment
during the elections. What
is the government’s plan in
this regard?
When it comes to job crea-
tion, we have to look at it in its
entirety. I want to give you
some facts. And think, would
these things have come up
without employment genera-
tion?
In the last seven years,
24,000km of rail route has
been electrified. When it
comes to highway construc-
tion, we have added thousands
of kilometres despite the pan-
demic.
LPG coverage has increased
from 55% to over 95%—this
means a larger distribution net-
work and expansion of agen-
cies.
Rural electrification has also
taken place at a record pace,
and we have electrified more
than 99% of villages. This has
led to the creation of jobs dur-
ing and after electrification. During the pandemic, a lot of years old—that means even in ated with their growth. started getting back on track.
About 33 crore MUDRA things simply came to a stand- the midst of Corona, 1 crore Small and medium indus- Our approach regarding small-
loans have been given, which still. The Opposition and some new opportunities have been tries have been hit hard due scale industries has been to save
not only ensures economic political experts were even created for the youth. to the pandemic. Most of the as well as grow them in this
empowerment but also creates thinking that India would According to NASSCOM, in employment is also gener- period. For this, our government
more jobs. never be able to recover from it. the last 4-5 years, around 23 ated by this sector. What has come up with a special credit
When a record level of work But the power of India is such lakh direct and indirect jobs special measures is the gov- guarantee scheme. More than
is being done in every sector, that we did not have the kind of have been created (in IT). ernment taking to bring ₹2.5 trillion were given to these
not just one, will it devastation that In 2021 alone, we saw 44 them back on track? small-scale industries across the
happen without When it comes to these people were startups reach unicorn status, We cannot deny that there country. Consequently, many
employment gen- highways, we praying for. Nev- and over 2,000 new startups was a very serious pandemic in small-scale industries were saved
eration? have added ertheless, the have come up. We have also the whole world and in such a from closure.
Today work is thousands of speeches these seen startups receiving record situation, we framed the neces- It is the result of the efforts of
being done three- people had pre- investments in 2021. sary policies and strategies the government that the export
kilometres
four times faster pared then are still Forget about 2021. If you talk accordingly. of goods is increasing. As the
than before. despite the being used despite only about 2022, India has pro- In these circumstances, it is export of goods is rising, our
When the speed pandemic the situation not duced one new unicorn every also true that the economy of small-scale industries, our
of work increases, being the same five days. It also means more the whole world had to go MSMEs have started working
more workers are now. opportunities for our youth. through a very difficult period. with new vigour. We are fram-
also needed, doesn’t it encour- Coming to EPFO, the num- Talking about the export of Despite this, today, we are see- ing the policies in such a way
age employment? ber of formal jobs created in the engineering goods, there has ing the positive impact of the that the small-scale industries
Now let’s talk about the pan- last eight months is more than been a huge growth in it policies and decisions we made of the country benefit and get
demic period. Covid is the big- the previous three years. because small and medium in the interest of the country. maximum work. In this budget,
gest crisis in 100 years, the There are many such jobs industries are very much We are seeing how the econ- we have decided that 68% of
greatest pandemic. There is no which have been given to the involved with this sector. So, omy of the major countries of the country’s defence needs
one in the world who has not youth. There are more than 1 clearly, employment opportu- the world is still derailed will be met from the domestic
been affected by it. crore such youth who are 18-28 nities have definitely been cre- whereas India’s economy has market itself.
LIVEMINT.COM CORPORATE THURSDAY, 3 MARCH 2022
NEW DELHI 07

Inflation ate into volumes of SOCIAL, LIVE COMMERCE TO

DRIVE ONLINE FASHION BIZ
FMCG in December quarter ORDINARY
they could buy from SMBs through social com-
merce, 63% said they are more likely to make
repeat purchases from the same seller.
The study covered 10,000 users from India,
POST China and Brazil, the US and UK. While China
will remain the largest market for social com-
Data released by NeilsenIQ shows 2.6% y-o-y fall in volumes as rural demand dipped sharply SHUCHI BANSAL merce, India and Brazil are registering the high-
est growth, the report said.
Respond to this column at Social commerce’s success in India reflects the
Suneera Tandon shuchi.b@livemint.com power of mobile-first consumers in the country
suneera.t@htlive.com
Kirana nos up and the launch of hyperlocal social commerce

S
NEW DELHI tage3 co-founder Sabena Puri insists that platforms, it said.
4% in 2019-21 the way beauty and fashion is sold online in That, perhaps, prompted Puri to target the

S
ales volume of fast-moving India is set to change forever. The change, millennial and GenZ consumers who are digital
consumer goods fell 2.6% in she says, will be enabled by her own startup as natives and spend eight hours a day on social
the December quarter from a Suneera Tandon well as several others “that come with their own media. “We’re building a social commerce plat-
year earlier, with inflation renditions”. Apart from Meesho and Trell, India’s form which merges traditional e-commerce’s

N
causing a sharp dip in rural ielsenIQ on Wednesday social commerce is now driven by platforms like transaction capability with social media net-
demand after five quarters of positive also released its Retail Glance and Roposo, and other short-video apps works to deliver to young India a feed, which is
growth, according to industry data Establishment Survey in like Moj. Roposo pivoted to a live commerce personalized, discovery-based and video-led,”
released by NielsenIQ. Q421 that tracks the total num- model last year. she says.
Higher inflation during 2021 led to ber of FMCG stores in India. The Stage3 will help young consumers discover Inevitably, social commerce will be entwined
three consecutive quarters with double- total number of stores selling and buy branded fashion at affordable prices. with video commerce and will include live-
digit price increases resulting in a con- FMCG in India grew at a com- The company promises to be an enabler for sell- stream-based e-commerce as the market
sumption slowdown in urban markets pound annual growth rate, ers (individuals, influencers and small brands) matures. With videos becoming an integral part
and consumption degrowth in rural (CAGR) of 4% over 2019-21. The complete with logistics and secure payment ser- of branding for com-
markets, the market researcher said in market added 800,000 stores in vices. India’s social panies, video com-
its FMCG Snapshot on Wednesday. the country. Interestingly, 60% Puri’s firm got its first round of institutional commerce is merce shoppers could
NielsenIQ, which follows a calendar of these opened in rural India. capital from Blume Ventures, and has raised Rs touch 216 million by
year, reported a more “accentuated” “The usual annual rate of 20 crore in pre-series A, led by Inflection Point now driven by the end of 2022, a
slowdown in rural markets, with vol- growth has been approximately Ventures and LC Nueva Investment Partners. platforms like report by digital
umes down 4.8% during the quarter. 1-2% in pre-covid-19,” the India’s social commerce segment seems to be Meesho, Trell, agency WATConsult
This slowdown comes after rural mar- researcher said. on fire, with new companies popping up in the and a few more said. Video commerce
kets drove demand for FMCG compa- Rural demand saw a dip after five quarters of positive growth.. MINT space selling fashion and other products or yet refers to shoppable
nies in the initial months of the pan- others emerging to bolster the creator ecosys- videos on social com-
demic. Inflation is hurting rural house- quarter earnings call. term impact because of global inflation- December quarter, while volumes of tem. On Tuesday, social currency card company merce platforms such as Meesho, Sim-Sim, Trell
holds, it said. Diptanshu Ray, South Asia cluster ary pressure. Within this environment, food items were down 1.2%. Non-food Wyld said it has raised pre-seed funding from or on social media websites or video sharing plat-
“Categories such as staples, or OTC, lead, NielsenIQ, said consumers in rural the calendar year has seen double-digit categories, said NielsenIQ, are experi- Better Capital and entrepreneurs like Aman forms.
have seen a high price increase in last India are going back to small pack sizes growth, though there has to be a watch encing stress in volumes. Gupta and Sameer Mehta of Image Marketing Social commerce is a blend of content, com-
two quarters, leading to larger price to cope with inflation. out for continued consumption “Consistent inflation is happening in that sells boAt products. Wyld is a payment card merce and community. “The first generation of
growth in rural markets and, hence However, the December quarter saw degrowth impacted by price increases,” cooking mediums and staples. We have and mobile app for active social media users e-commerce was built on closing transactions.
impacting the volumes,” the researcher 9.6% year-on-year growth in value Ray said. seen a drastic price increase in the last (those with over 1000 followers on Instagram) to It’s beyond that now as consumers want online to
said in its report. terms for FMCG in India on account of He said inflation across edible oils and two quarters; this is basically taking the help them monetize their social influence with mimic offline experience,” Puri says.
Companies have been warning of price-led growth up. Consumers are every purchase. boAt’s Gupta called it a platform Little surprise that traditional online fashion
an impending rural slowdown over MOVING GETS SLOW optimizing their baskets and ration- that allows social media users to become brand marketplace Myntra has entered social com-
the last two quarters. “We had cau- alizing spending on non-foods. This evangelists and monetize their networks. merce too. In an interview to Mint last month,
tioned about rural growth in our HIGHER inflation NIELSENIQ has said AN analyst at BUT the December is primarily happening in rural, Puri, too, believes that influencers are now Myntra CEO Nandita Sinha said though 60% of
September quarter earnings call, during 2021 led to
three consecutive
slowdown in rural
markets was higher
NielsenIQ said rural
buyers are returning
quarter saw 9.6% y-
o-y growth in value
which is not a good sign at this point almost the marketing agencies of brands. They its consumer base is still in the metros, growth is
and we do see the deceleration tak- quarters with double as volumes fell 4.8% to small packs to terms for FMCG in in time,” he added. are the brand’s voice and its customer acquisition coming from tier two and tier three towns. “Our
ing hold. With very high levels of digit price increases during the quarter cope with inflation. India, the report says Meanwhile, inflationary head- channel. Stage3, however, will put smaller foray into social commerce is really getting a
inflation that consumers are wit- winds continue to impact small brands and home entrepreneurs in fashion and deeper view into these consumers”, she said. For
nessing, volumes in the market have manufacturers. The number of beauty in touch with consumers as they lack the this, the company launched Style Squad, a cohort
declined, and this decline is more accen- successive price hikes taken by large staples is hurting household budgets. As small manufacturers or those with sales resources to sell on traditional e-marketplaces of fashion content creators or influencers to
tuated in the rural markets and in those companies. For the full year, the FMCG a result, consumers spend less on non- below ₹100 crore dropped by 13% dur- where commissions could be as high as 35%, she exclusively collaborate with Myntra and its brand
categories which have been impacted industry reported a smart 17.5% growth, food categories such as home and per- ing the quarter. This was due to the diffi- says. partners to become the faces of Myntra’s social
more by commodity inflation,” Sanjiv albeit led by price increases. sonal care. culty of continuing operations with It’s easy to see where Puri is coming from. A commerce proposition.
Mehta, chief executive officer and man- “During the fourth quarter, the coun- Non-food categories such as personal higher costs. Large and medium manu- report by Accenture said that social buyers are Clearly, companies are building social com-
aging director, Hindustan Unilever Ltd try’s macroeconomic factors continued care and home care reported a year-on- facturers stayed stable through the year. more likely to support small businesses than merce and creator ecosystem to drive consumer
said during the company’s December to witness softness, and there is a long- year volume decline of 5.9% in the large brands. Over 59% of those surveyed said demand and stickiness.

DELHI JAL BOARD, GOVT. OF NCT OF DELHI

OFFICE OF THE CHIEF ENGINEER (SDW)-NW
KESHOPUR STP, KESHOPUR, DELHI-110018
Mob. 9650291199, E-mail: eesdwxii@gmail.com
Press NIT No. 21(2021-22) Re-invited
S Name of Work Estimate Earnest E-tender ID Last date/time
N Cost Money for receipt of
(EMD) tender through
e-procurement
solution
1. Up-gradation and Comprehensive Operation & Item rate 198.37 2022_DJB_ 21.03.2022
Maintenance of 40 MGD Sewage Treatment Plant at Lakhs 217670_1 03.00 PM
Rithala Phase-II, Delhi for 10 years
NIT along with all terms and condition is available on website https://govtprocurement.delhi.gov.in
ISSUED BY P.R.O. (WATER) STOP CORONA: “Wash Your Hand, Wear Mask (Ashok Sharma)
Advt. No. J.S.V. 1191(2021-22) & Maintain Social Distance” EE (SDW) XII

DELHI JAL BOARD, GOVT. OF NCT OF DELHI

OFFICE OF THE ADDITIONAL CHIEF ENGINEER (P)-3
EXECUTIVE ENGINEER (SDW)-II
OKHLA SEWAGE DISPOSAL WORKS, MATHURA ROAD, NEW DELHI-110025
Email: eesdw2.djb@nic.in, delhijalboard2@gmail.com, Ph. 011-26838404
Press NIT No. 20/SDW-II (2021-22)
S. Name of work Tender Fee EMD amount Date of release Last date/time of
No. of tender in receipt of tender
e-procurement through e-procurement
solution solution
1. Operation and maintenance of 1,500/- 95,12,300/- 2022_DJB_217721_1 31.03.2022 upto 3.00
New 30 MGD STP Okhla, Phase- Dt. 28.02.2022 PM
VI for a further period of 10 years.
2022_DJB_217721_1
NIT along with all terms & conditions is available on website https://govtprocurement.delhi.gov.in
ISSUED BY P.R.O. (WATER) STOP CORONA: “WASH YOUR HAND, WEAR MASK & (PARTOSH KUMAR)
Advt. No. J.S.V. 1193 (2021-22) MAINTAIN SOCIAL, DISTANCE” Executive Engineer (SDW) II

DELHI JAL BOARD, GOVERNMENT OF NCT OF DELHI

OFFICE OF THE CHIEF ENGINEER (SDW)NW
KESHOPUR STP, NEW DELHI-110018, Email: cesdwnwdjb@gmail.com

Press NIT No. 01/(2021-22)

S. Description of work Date of Uploading Estimated cost/Earnest Last date of
No. on E-Procurement Money & Tender Fee submission of
solution/Tender ID tender/Pre-bid
1. O&M of 90 MGD Effluent Pumping Station i/c 02.03.2022/ 20 Lakh deposit + 28.03.2022 at
rising main at Yamuna Vihar for 10 year. 2022_DJB_217814_1 2.58 Cr. in the form of 03.00 PM/10.03.2022
BG/1500/- at 12 P.M.
For further details in this regard can be see https://govtprocurement.delhi.gov.in
ISSUED BY P.R.O. (WATER) “STOP CORONA: WEAR MASK, FOLLOW PHYSICAL
(M.C. Gupta)
Advt. No. J.S.V. 1195 (2021-22) DISTANCING, MAINTAIN HAND HYGIENE” Executive Engineer (SDW) III

DELHI JAL BOARD (Govt. of N.C.T. of Delhi)

OFFICE OF THE ADDL. CHIEF ENGINEER (C)-5
THROUGH DY. SUPERINTENDING ENGINEER(C)DR-III
Kanhaiya Nagar, Delhi - 110035, Phone: 011-27394876, Email: eecdr3@gmail.com
PRESS NIT NO.- 24 (2021-22)
S. Name of work Amount Put to Earnest Tender Date of Last date/
No. Tender Money (EMD) processing Release time of
(in Rs.) (Rs.) Fee Non of Tender/ receipt of
Refundable Tender Id. tender
(Rs.)
1. Providing & Laying 300 mm to 635 mm nominal dia 35,74,17,479/- Rs. 1500/- 28.02.2022 / 22.03.2022
(710 mm outer dia) Internal and Peripheral sewer 45,75,000/- 2022_DJB_ upto
line in Pradhan Enclave falling under Coronation 217783_1 3.00 P.M
Pillar WWTP catchment area in Burari AC-2 in Delhi.
2 Providing & Laying 300 mm to 1400 mm dia 316,36,00,344/- Rs. 1500/- 28.02.2022 / 22.03.2022
internal and peripheral sewer line in Zindpur GOC 3,26,37,000/- 2022_DJB_ upto
falling under Zindpur WWTP catchment area in 217783_2 3.00 P.M
Narela (AC-1) & Burari AC-2.
Further details in this regard can be seen at https://govtprocurement.delhi.gov.in
ISSUED BY P.R.O. (WATER) “STOP CORONA: Wear Mask, Follow Physical
Advt. No. J.S.V. 1194(2021-22) Distancing, Maintain Hand Hygiene” Dy. SE(C) DR-III
08 THURSDAY, 3 MARCH 2022
NEW DELHI DEALS, TECH & STARTUPS LIVEMINT.COM

m MINT SHORTS
Prozo Distribution raises $10 mn in
Accel India raises $650 mn Monthly
active users
round led by Sixth Sense Ventures
Bengaluru: Prozo Distribution Pvt. Ltd which operated supply
chain, warehousing and logistics focused startup Prozo, has
raised $10 million (₹76 crore) led by Sixth Sense Ventures with
for 7th venture capital fund up 200% on
apps, games
participation from Jafco Asia and high net worth individuals
(HNIs). The Noida-based company will use fresh funds to expand Abhijit Ahaskar
the its infrastructure, tech capability and market coverage across abhijit.ahaskar@livemint.com
the country, the statement said. ANUJ SUVARNA The seventh fund is higher than the $550 million Accel raised for its sixth vehicle in 2019 NEW DELHI

A
ndroid apps and games
Amitabh Bachchan, Inflection Joseph Rai panies that we could get into with this made in India seem to
fund where we can protect our pro rata have reached new
Point Ventures back Macmerise Ranjani Raghavan
for a longer term in each company. We highs in the past two years.
HT
NEW DELHI want to be the first institutional investor Apps and games made in India
and our aim is to get 20% during our saw a 200% increase in

A
ccel India, an early backer investment period in the companies,” monthly active users in 2021
of startups such as Flipkart Kirani said. from the 2019 figures, accord-
and Freshworks, has raised Accel has also been the first venture ing to Purnima Kochikar, vice
$650 million in commit- capital firm to back companies such as president, Play Partnerships at
ments for its seventh fund Acko, Blackbuck, BookMyShow, Google. Users spent 150%
to invest in new opportunities such as Bounce, BrowserStack, Clevertap, Cur- more time on homegrown
emerging technology across India and efit, Mindtickle, Moglix, Ninjacart, Por- apps and games globally in
Southeast Asia, it said on Wednesday. tea, Rupeek, Samunnati, StanzaLiving, 2021 compared to 2019,
“This money, we believe, is the right UrbanClap (now Urban Company), and Kochikar said.
size for India and Southeast Asia to build Zenoti. “India is home to one of the
a world-class return to our investors. In the past, Accel has been investing largest bases of internet users
New Delhi: Merchandise startup Macmerise Celfie Design Investing is easy but making our in the Southeast Asian region as well, and is one of the fastest-grow-
on Wednesday said it has secured pre-Series A funding of investee companies durable and poten- where it has backed investing app Plu- ing app user countries in the
$1 million (around ₹7.56 crore) led by Inflection Point Ven- tially going public and returning the ang and quick commerce startup Astro. world. India’s apps and games
tures. The round also saw participation from investors money is more important,” Shekhar “For the last few years, we are actively have been receiving extraordi-
including Bollywood actor Amitabh Bachchan, Tarun Kirani, partner, Accel, told VCCircle in looking to invest in the region. While we nary
Katial, Ajmera Group and NAFA Capital, among others. The an interview. don’t have a specific allocation, we will inter-
Mumbai-based platform eyes using the fundraise to boost The seventh fund invest as and when we find good oppor- e s t
its innovative provisions and technology network, along is higher than the Accel has been investing in the Southeast Asian region as well. ISTOCK tunities. The kind of acceleration we are from
with roping in more brands and celebrities for its merchan- $550 million Accel seeing in some businesses there, it users as well as investors,”
dise roll out. KAUSHIKI CHATTERJEE raised for its sixth vehicle in 2019. software as a service (SaaS), consumer but we are also making sure that the seems to be the right place to invest Kochikar said at the virtual
Accel’s peer Sequoia Capital had fintech, global business to business companies that we invest in are of high more. We will continue to spend a lot of launch of Appscale Academy,
received record commitments worth (B2B) marketplaces, digital health, and quality and compliant with regulatory time in Southeast Asia from this fund,” a venture by Google and the
Pet care firm Just Dogs raises $7 mn $1.35 billion from its limited partners Web3, according to Abhinav Chatur- norms,” Kirani said. Chaturvedi said. ministry of electronics and
across a venture fund and a growth fund vedi, partner at Accel. Accel, which typically comes in at a Accel also got bumper returns from information technology
in funding round from Sixth Sense to invest in India and Southeast Asia in Accel has invested in FalconX, a seed stage and then makes follow-on these two bets as Flipkart got acquired (MeitY).
New Delhi: Retail pet chain Just Dogs on Wednesday said it has 2020. Web3 company, through its sixth fund, investments, has been the first institu- by Walmart in the biggest M&A deal in Ludo King, a game made by
raised $7 million (around ₹53 crore) in a funding round from Sixth The ticket size of the new fund is the startup ecosystem in India and Mumbai-based Gametion
Sense Ventures. The startup plans to use the fresh money to build expected to be higher, though it will BIGGER BET Freshworks floated its initial pub- Technologies Pvt. Ltd,was
a full-stack online experience for the pet parent and expansion also depend on different companies, lic offering last year on Nasdaq. among the most played games
of offline stores. Founded by Ashish Anthony and Poorvi Kirani said. “There is inflation in ACCEl’S THE new fund will ACCEl has been the EARlIER, Accel Earlier this month, Accel India in the world, she said. Game-
Anthony, Just Dogs provides dog foods, supplements, accessories general and with the latter part of commitment to the
startup ecosystem
seek to invest in
consumer fintech,
first institutional
investor in more
India selected 14
startups as part of its
selected 14 startups as part of its first tion claims the game has been
and other pet products through its platform.KAUSHIKI CHATTERJEE our sixth fund and now with Fund has increased to next generation e- than 87% of all first cohort of Atoms cohort of the Atoms programme downloaded 650 million
VII our ticket size will be higher. over $2 billion commerce, etc. portfolio companies programme that was launched last year to make times. Appscale Academy was
Repeat founders are expecting pre-seed funding in startups. first announced in October last
Investments in agritech startups much higher initial cheques,” he Last year, several early-stage ven- year. It aims to help early to
explained. With the latest fund, Accel’s Kirani said. Notably, FalconX was tional investor in more than 87% of all ture capital firms announced fundrais- mid-level Indian startups to
rise sharply to nearly ₹6,600 crore commitment to the startup ecosystem in co-founded by Prabhakar Reddy, who portfolio companies. Flipkart and ing milestones. Chiratae Ventures, Stel- build apps and games for
New Delhi: Investments in agritech startups significantly grew the region has increased to more than $2 was with Accel in 2016-18 and the VC Freshworks are examples of companies laris Venture Partners, and WaterBridge global markets. The company
in four years to nearly ₹6,600 crore till 2020 on the back of explo- billion, the venture capital firm revealed firm worked together with him on backed by Accel from their initial seed Ventures announced the final close of announced the names of 100
sive growth potential for companies that address inefficiencies in a separate statement. developing the idea. FalconX focuses on rounds through all subsequent financ- their new funds and Blume Ventures startups who will be the first
across the agri value chain, according to a report. Indian agricul- The new fund will seek to invest in institutional brokerage of crypto assets. ings. announced the first close. cohort to receive the benefits
ture has faced some challenges in the past. PTI next generation e-commerce, emerging “Overall, we are excited about Web3, “Our goal is to find the 40-plus com- joseph.rai@livemint.com of this academy.

REUTERS

Hackers launch phishing attacks ahead of EV adoption

Moumita Deb Choudhury & tively similar to our website, like this and this allows fraud-
Abhijit Ahaskar with our name and trade- sters to trick them,” he added.
marks. Those website(s) also Google ads are also used by
BENGALURU provide links to apply and EV firms to generate leads, and
make payments. The fraudu- scamsters are taking advan-

A
lthough electric vehi-
cle (EV) adoption is still
at a nascent stage in
India, scammers have
launched phishing campaigns
to target potential EV distribu-
tors and users.
For instance, on 6 Decem-
ber, Aniket Mudame tagged
Ola Electric’s Twitter handle
to verify an email invite he had
received to start a dealership
on a payment of ₹25,000, only
to realize that he could have
been defrauded.
Mudame was one of the
lucky few, as thousands fell
prey to such attacks.
Bengaluru-based security
firm CloudSEK said India saw
a spike in phishing campaigns
designed to take advantage of
the growing demand for EVs
since the second half of 2021.
The scam has so far cost Indi-
ans₹4-8 crore, it added.
Scammers exploited Goo-
gle ads to misdirect unsuspect-
ing users to phishing sites to
access data and defraud each
user of ₹2-4 lakh, it said, add-
ing that fake internet domains,
resembling EV manufacturers
India saw a spike in phishing campaigns designed to take
advantage of the growing demand for EVs.
and marketplaces, have mush-
roomed. They are manipulat-
ing search engine optimiza-
tion techniques to appear on
generic searches as
well as searches for
specific EV brands,
and money is col-
lected in the guise of reserva-
tion, booking fees, security
deposits, or dealerships.
To be sure, EV makers are
aware of the problem. “The
growing demand for EVs has
proved a boon for businesses
and individuals. However, it
has also opened another ave-
nue for scamming or exploit-
MINT
ing the masses,” said Sohinder
Gill, chief executive officer,
Hero Electric, the EV arm of
Hero Motocorp.
A spokesperson
of the oldest EV
startup of Ather
Energy said it first
encountered such a scam last
year, and has been “proact-
ively” looking out for such
activities since then. “In the
past few months, we have
encountered a handful of fake
websites, such as atherenergy-
dealership.com, atherenergy-
dealer.in, and atherelectric-
dealer.com, which are decep-
lent websites made fake vehi- tage of that.
cle bookings, issued a ‘Letter “They even bid high on key-
of Intent’ and asked users to words and take the prime posi-
pay ₹2,999 towards registra- tion and, if anyone searches,
tion and security.” their results show on top, and
A former employee of Ola users end up clicking on
Electric said the company was them,” Kawoosa said.
well aware of such scams when Ather said it had filed cyber
it started registra- fraud complaints
tions. The Google ads are and directed vic- How tech giants reacted to Ukraine crisis
employee, seek- also used by EV tims to the police
The Russia-Ukraine conflict has inadvertently become a test of the power technology giants
ing anonymity, firms to generate when it came to wield today. Caught between the Russian and Ukrainian governments, and even the European
said while some leads, and know about the Union, firms like Google LLC, Microsoft Corp., and Apple Inc. have taken decisions that will
EV firms have scams. It has noti- affect individuals as much as governments.
scamsters are
warned users fied abuse to
through social taking advantage domain registries
of that GOOGLE META MICROSOFT
media posts, it’s and search
unlikely that they engines, and to ON 27-28 February, it LAST month, Meta ON 24 February, Microsoft’s
are “trying to spot raise awareness temporarily stopped (formerly Facebook) Threat Intelligence Center
and foil such scams” actively among stakeholders, it issued displaying live traffic took down a “relatively (MSTIC) detected “destructive
information on the Maps app small” network of around 40 cyberattacks” against Ukraine’s digital
by forming teams. Ola Electric public notices through social in Ukraine accounts, pages, and groups that infra. It said it notified Ukrainian
did not respond to a request media and national print ads were spreading misinformation. authorities of the same.
 IT also blocked
for comment for the story. informing everyone about its Russian media firms  ON 26 February, the  IT also de-ranked RT and
Faisal Kawoosa, founder and official website. “We have also RT and Sputnik’s news said it had established a Sputnik content from the
chief analyst at market put up a caution notice on our apps from its app store in “special operations personalized news feed platform
research firm techARC, said website and have been actively all of Europe. centre” to monitor the platform called Microsoft Start and Bing search.
the problem is rampant across sending emails to our stake- around the clock and respond to
 THE Russian authorities, on
issues in real-time. APPLE
sectors with high consumer holders and posting dis- their part, have urged Google
interest. claimer information on our to stop ads that spread  LIKE Google, Meta  IT has suspended all
misinformation about too has restricted product sales from its online
“When large players cause a social media handles,” the casualties sustained access to Russian stores in Russia, disabling the Russian
disruption in the way products spokesperson said. by Russian forces and state-owned media outlets in the population from purchasing iPads,
are booked, consumers end up moumita.choudhury@live- Ukrainian civilians. entire European Union region. iPhones, and other Mac products.
thinking that this sector works mint.com

Permanent work-from-home jobs for select roles gain popularity

Ayushman Baruah six months. About 57% of these technical writers, program- gig workers who possess the launched a work-from-any- mutes, thus having a positive
ayushman.b@livemint.com searches were for permanent mers, recruiters, and other necessary niche skills sets. where initiative in the early impact on their well-being,”
BENGALURU remote jobs. individual contributor roles “We currently leverage an stages of the pandemic which said Vivek Ranjan, chief
According to Naukri.com, are most likely to work from artificial intelligence-based led to multiple benefits. “One human resources officer, Zen-

P
ermanent remote work-
ing jobs are fast gaining
popularity, especially for
select roles in the software ser-
vices sector, with employees
showing improved productiv-
ity and other health benefits
even as they don’t physically
attend offices.
Naukri.com currently has
more than 93,000 permanent
and temporary remote job lis-
tings, out of which 22% jobs
are for permanent remote
roles only. The job search por-
tal saw more than 3.2 million
searches for permanent and
temporary remote jobs by
Indian job seekers in the last
some of the companies posting
both temporary and perma-
nent remote jobs include
Amazon, Tech Mahindra Ltd,
HCL Technologies Ltd, PWC,
Trigent, Flipkart, Siemens,
Deloitte, Oracle, Zensar Tech-
nologies Ltd, Tata Consult-
ancy Services Ltd and Cap-
gemini.
Globally, companies such as
Slack, Twitter, Spotify and
Tata Steel have allowed
employees the option to con-
tinue working remotely.
Data from TeamLease
showed that profiles like data
scientist, software developers,
designers, product managers,
home on a permanent basis.
Data also suggests that pro-
ductivity has risen with the
work-from-home (WFH)
arrangement. A FlexJobs
report showed that remote
and flexible workers tend to be
happier and more loyal due to
lower stress levels when work-
ing from home.
“Some of the pros for WFH
are increased flexibility,
reduction in overall infra-
structure costs, employee
retention, access to a wider tal-
ent base, less distractions and
overall cost savings for the
employees,” said Siva Prasad
Nanduri, business head-IT
Globally, companies such as Slack, Twitter, Spotify and Tata Steel
allow employees an option to continue working remotely.
Staffing, TeamLease Digital.
To be sure, remote working
has its own disadvantages.
“Freshers are at a disadvantage
as work is seen more as a trans-
action than collaboration and
HT
can become a hindrance for
growth in their career,” Nan-
duri said.
Nevertheless, as WFH gains
in popularity, Tech Mahindra
is seeing growing demand for
talent marketplace of the biggest sar.
called, Talex, to RISING advantages of this HR experts believe remote
identify gig work- DEMAND initiative is that we working is here to stay as it
ers internally. We have access to a provides access to talent with-
have also built an OF the 3.2 million diverse set of talent out geographical barriers.
external market- job searches on
Naukri.com, 57%
who may have “Organizations with a
place called BeGig were for permanent been out of our remote work culture will be
that e n a b l e s remote jobs reach due to loca- leading the way to attract top
employers to tion…This has also talent, and to give employees
seamlessly tap into DATA also suggests helped us recruit more options to define their
that productivity has
the freelance increased with the those who were on work-life balance. In talent
workforce and hire work-from-home a career break, acquisition and retention,
the appropriate arrangement mostly women companies now realize that to
and requisite tal- employees as well attract and keep the best tal-
ent,” said Harsh- as those who are ent, WFH must be an option,”
vendra Soin, global chief peo- physically challenged. It has said Varun Sachdeva, APAC
ple officer and head of Market- also led to better work life inte- Recruitment Leader, NLB Ser-
ing, Tech Mahindra. gration for our employees as vices, a workforce solutions
Zensar Technologies no time is spent on long com- provider.
LIVEMINT.COM CORPORATE THURSDAY, 3 MARCH 2022
NEW DELHI 09

FSSAI to introduce health star Prolonged war to hit Indian

MSMEs hard: FISME chief
rating for packaged goods Rituraj Baruah
rituraj.baruah@livemint.com
NEW DELHI

A
large number of small
Rating will be based on salt, sugar, and fat content and will be printed on the front of the pack businesses will be
severely impacted if the
war in Europe continues for
Priyanka Sharma information present in 100 mg quantity another week, a lobby of Indian
priyanka.sharma@livemint.com of packaged food. Our FoSCoS licens- small enterprises said on
NEW DELHI ing application portal will have a new Wednesday. In an interview,
module for generating HSR certificate Federation of Indian Micro and

P
ackaged food products in for the food product wherein a licensee Small & Medium Enterprises
India will soon be labelled can put in details of their product. (FISME) president Animesh
with an official health star Based on evaluation, HSR certificate Saxena said that freight rates
rating (HSR), a top official at will be generated for the respective have gone up 10-15% in the past Freight rates have gone up 10-15% in the past week of Russia’s
Food Safety and Standards packaged food item. These ratings will week of Russia’s Ukraine inva- invasion, raw material costs are expected to shoot up as well. HT
Authority of India (FSSAI) said. be provided by the FSSAI depending sion, and the raw material costs
The rating will be the first such in upon the factual information of the are expected to shoot up as On payment issues due to icy focus to formalize micro
India, a country burdened with lifestyle product,” Singhal said. well. some Russian banks cut out of enterprises which are largely
diseases, and is aimed at guiding con- Over the last year, the apex food reg- According to commerce Swift, the world’s most widely unorganized, with very little or
sumers to opt for healthy food. The ulator has been brainstorming with ministry data, India’s bilateral used international payments no institutional financing at all.
HSR format ranks a packaged food item experts to launch FoPL in India. A peti- trade with Russia stood at $8.1 network, Saxena said, “The Small enterprises are also
based on salt, sugar, and fat content and tion seeking direction to the govern- billion in FY21, with Indian payment crisis has already concerned about any likeli-
the rating will be printed on the front of ment to frame guidelines on HSR and exports of $2.6 billion and started. We are in touch with hood of sanctions or blockade
the package. impact assessment for food items and imports of $5.5 billion. the government on the pay- by the US and European Union
This move follows a report by the beverages was filed in the Supreme “About 40% of the exports ment crisis specially and other as a result of their continued
Indian Institute of Management Court in June last year. from India are from MSMEs. safety issues.” trade with Russia, Saxena said.
Ahmedabad (IIM-A) on the impact of Recently, representatives from IIM-A We have already started seeing “We are seeing how the On the broader situation of
front-of-the-pack labelling for pack- and Dexter Consultancy made a the increase in the freight, sea things unfold. If the things are MSMEs in the country, he said
aged and processed foods. The study detailed presentation before the FSSAI as well as air, which were sorted out soon, it’s OK; other- that the sector has so far wit-
endorsed the HSR format as the best revealing the findings of the survey. already almost four times from wise, it (prices) might spiral up.” nessed a recovery and was
suited to Indians in helping to choose The move is aimed at guiding consumers to opt for healthy food. MINT Members from industry associations, pre-pandemic days,” he said. MSMEs have been a major anticipating a faster pace of
healthier packaged food items under a consumer organizations, scientific The FISME president said focus for the gov- growth as the
new policy on Front of Packaging across the world and identify one sought feedback from industry associa- panel on Labelling and Claims/Adver- that as the war intensifies and ernment amid the Small businesses economy revives,
Labelling (FoPL). which is easy to understand and can tions for evaluation by a scientific panel tisement, and the World Health Organi- more cargo flights avoid con- pandemic. Along may witness but noted the
“IIM-A has recommended HSR as induce behaviour change among so that the HSR model can be included sation also participated in the meeting. flict areas, transit and delivery with several disruption worrying rise in
the most preferred format by Indian Indian consumers. In India, packaged in the draft regulation formulated by “Based on the analysis of the data, times will increase and freight measures to ease primarily in the raw material
consumers under proposed FoPL in food has had back-of-package (BOP) the government. IIM-A recommended HSR over other rates will go up. the regulatory costs.
supplies of
India. This national survey by IIM-A is nutrient information in detail but no The food regulator has exempted models for achieving a careful combi- Export sectors that will be framework and Calling for reg-
the voice of more than 20,000 people FoPL, which, as global experience sug- milk and dairy products from the pro- nation of the dual objectives for the most impacted include textiles, business environ- polyester and ulations regard-
across the country and none of the gests, has the ability to nudge healthy posed FoPL, as they were in the earlier ease of identification and understand- apparels, electronic goods, ment for small chemicals ing the pricing of
countries in the world has surveyed ing; and change of purchase behav- plastic and metal components, businesses, the raw materials
people at such a large scale. FoPL HEALTH CONSCIOUS iour of Indian consumers,” accord- Saxena said. Other major government in used in industries,
will bring a transformational ing to the minutes of the meeting exports to Russia include phar- 2020 rolled out the Emergency he said that in the past one year,
reform in the society as it will THE move follows a THE study endorsed THE FSSAI had IN India, packaged reviewed by Mint. maceuticals and machinery. Credit Line Guarantee Scheme cotton prices are up 80%, forc-
encourage healthy eating. It will report by IIM-A on
the impact of front-
the HSR format as
the best suited to
directed IIM-A to
conduct a survey to
food has had back-
of-package nutrient
During the meeting, three major In terms of raw materials, (ECLGS) to support pandemic- ing several businesses to shut
also help to reduce the burden of of-the-pack labelling help Indians choose analyse major FoPL information in detail decisions were also taken on set- small businesses may witness hit businesses with the primary shop. He added that the budget
Non- Communicable Diseases for packaged foods healthier items models but no FOPL ting up thresholds and the number disruption primarily in the sup- focus on MSMEs. The scheme announcement of a 35.4%
(NCDs) in the country,” Arun Sin- of categories, type/format of FoPL, plies of polyester and chemi- was launched with an initial increase in capital expenditure
ghal, chief executive officer, FSSAI, and a time period for transition cals, driving up their prices. corpus of ₹3 trillion, but it has should be helpful for the sector
told Mint. consumption behaviour with respect to FSSAI draft notified in 2019. Also, the from voluntary to mandatory. The This comes in the backdrop of now been expanded to ₹5 tril- in the long run. The Union
The FSSAI, a body under the minis- packaged food. scientific panel has recommended vol- FSSAI noted that the proposed levels of input costs of products from lion. Budget for FY23 pegged a capi-
try of health and family welfare At present, countries such as the UK, untary implementation of FoPL from thresholds are in alignment with ‘FoPL steel to cotton yarn remaining Saxena said that although tal expenditure of ₹7.5 trillion
(MoHFW) had directed IIM-A to con- Chile, Mexico, New Zealand, and Aus- 2023 and a transition period of four Models’ implemented in other coun- high, with the geopolitical cri- these initiatives have sup- for the upcoming financial
duct a large-scale survey to analyse tralia have FoPL. years for making it mandatory. tries and ‘WHO Population Nutrient sis likely to make it worse for ported MSMEs, the govern- year, against of ₹5.54 trillion in
major FoPL models that are available Following the report, the FSSAI has “We will analyse the nutritional Intake Goals Recommendations’. SMEs. ment should bring about a pol- FY22.

Chalet Hotels focus on leisure portfolio Russia-Ukraine conflict may increase the
Varuni Khosla
varuni.k@livemint.com
Sethi said January was a bit
of a setback as occupancy rates
risk of cyberattacks for India, warn experts
were down due to rising covid
Devina Sengupta

K
Raheja Corp-backed case. However, the decline was executive officer of Ban-
Chalet Hotels Ltd will not as steep as in earlier waves. devina.sengupta@livemint.com breach, a cybersecurity com-
add up to two leisure In the first wave, occupancy MUMBAI pany specializing in network
properties to its portfolio in had fallen to 17% and its prop- security, data breach manage-

the coming years, said manag-
ing director and chief execu-
tive Sanjay Sethi in an inter-
view with Mint.
The company, which oper-
ates over 2,500 rooms across
seven hotel brands, such as the
JW Marriott Mumbai Sahar,
Four Points by Sheraton Navi
Mumbai, The Westin Hydera-
bad Mindspace and Bengaluru
Marriott Hotel Whitefield, will
build or acquire properties in
the National Capital Region,
Chennai and Goa. It is also
developing a Westin hotel in
Hyderabad.
Chalet Hotels is looking to
diversify across regions, asset
classes and hospitality seg-
ments through a mix of green-
field developments as well as
brownfield acquisitions, Sethi
said, adding that strategically
it is a good to time to look at
acquisitions, considering that
several hotel companies have
been hit hard by the pandemic
and may have balance sheet
challenges.
“We will evaluate all forms
I
erties were being used as quar- ndia needs to up its ante ment, and forensics.
antine facilities. In January, against potential cybersecu- Adversities such as covid
occupancy levels hit nearly rity attacks in the telecom, and the Russian invasion lead
37%, similar to the pan-India infrastructure and banking to an uptick in cyberattacks
average. sectors, warn cybersecurity and often individual accounts
The company also has 1.4 experts. are targeted.
mn sq. ft. of commercial build- With Russia’s invasion of “Given the current scenario,
ing space under development Ukraine also being played out some hackers will work in the
near its existing hotels in in the cyber world and mal- shadows attacking those who
Powai and Bengaluru. Once wares being introduced, these have a big Internet market
Chalet Hotels operates over 2,500 rooms across seven hotel the projects are complete, it may eventually find their way India has to be prepared for a vicious cyberattack. ISTOCKPHOTO base like India. There may be a
brands, such as the JW Marriott Mumbai Sahar. will be operating over 3,000 into Indian servers or get sold rise in WiFi hacking and indi-
rooms and around 3 million later in the dark web and used suffer from collateral damage. nations may take advantage of vidual accounts will be tar-
of growth. We don’t have a hotel property in Powai Lake, sq.ft. of office space. against India, the experts said. “During the state sponsored this distraction to test their lat- geted,” said Liad Herman,
timeline for acquisition. We Mumbai, from Renaissance to A report by consulting firm “India has to be prepared for attacks, it’s likely that new cus- est malwares into the vulnera- co-founder and chief execu-
will look at opportunities as Westin. It is also adding nearly HVS Anarock, which services a vicious cyberattack,” said tom based malware/exploits bilities of servers based in tive officer of SafeHouse Tech,
they come,” he 88 rooms to the the hospitality industry, said as Pavan Duggal, a Supreme come into play. India. an Indo-Israeli cybersecurity
said. “Clearly, the Chalet Hotels is hotel in Pune. a result of the Omicron wave, Court advocate and cyber law It’s possible that With malwares “The threat of enterprise.
impact (on hospi- looking to “We have a 167- domestic air traffic declined by expert. these thereafter being introduced n a t i o n - s t a t e However, Supreme Court
tality) is lessening diversify across room near-ready 43% in January compared to “I expect India’s critical get exploited in the wake of intrusions advocate Duggal said India
with every covid regions, asset Westin in Hyder- December. The hotel sector, infrastructure, banks, telecom commercially, Ukraine war, increases even for could also become a specific
-19 wave. There abad to be com- too, witnessed muted demand, network to up their securities hence there is a countries not target soon. “A lot of the hack-
classes and these may find
were a lot of vaca- missioned in the with occupancy rates falling in the coming days,” he said. possibility of engulfed in the ing community in Ukraine is
tions happening hospitality coming financial 23-25 percentage points to Duggal’s comments come cyber collateral their way into conflict. The spill- also not happy with India’s
in resort destina- segments year. Addition- 35-37%, the lowest levels since amid Russia’s invasion of impact even if Indian servers over of malware stance. This trend is likely to
tions. While we ally, we are in the June 2021, it said. Ukraine, which has also one is not a target attacks from Rus- be replicated in cyber space.
are seeing that midst of evaluat- While room rates continued spurred intense cyber warfare of cyber warfare,” sia or Ukraine Since India has chosen to
easing off a bit, we do see ing the demand dynamics to to rise on a year-on-year basis, where digital banking services said Siddharth Vishwanath, may not be high but smaller abstain from voting at the UN,
resort and leisure destinations commence construction of a average daily rates in January are targeted. Security experts cyber leader at PwC. groups or individuals may this approach could lead to the
to continue to do well.” 250-room Hyatt Regency in were down 15-17% month-on- warn that although India may There could also be a spill- carry out low intensity hacking community being
The company will rebrand a Navi Mumbai.” month to ₹4,900-5,100. not be a direct target, it could over impact where other attacks,” said Suman Kar, chief antagonized,” he said.

Aggregator platforms help small, niche streaming players stay afloat

Lata Jha The emerging trend is help- to video streaming, while OTT for all stakeholders , such as Accenture India, said. “For aggregators provide OTT plat-
lata.j@livemint.com ing OTT firms to focus on con- players partnering with these streaming platforms, telcos, consumers, bundling makes forms a faster monetization
NEW DELHI tent with aggregators taking telcos are gaining access to a and other smart devices, to woo content discovery simpler as opportunity. Aggregators are
care of product and user expe- huge mobile subscriber base. audiences and maintain sus- they can get more recommen- crucial to resolving customer

V
ideo streaming aggre-
gators, including Prime
Video Channels, Tata
Play and Airtel XStream Pre-
mium, are emerging as the
backbone of India’s online
video market, helping small
and niche streaming services to
stay afloat in a competitive eco-
system.
Though telcos offer bundled
over-the-top (OTT) video
streaming services, aggrega-
tors are helping small firms like
Lionsgate Play, DocuBay, Eros
Now and ShemarooMe to find
their feet and reach out to a
larger subscriber base.
rience, according to industry
executives
“There is a funnel that they
(aggregators) provide. It opens
up a subscriber base, which if
the individual platform had to
go on and acquire themselves,
would have taken longer,” said
Amit Dhanuka, executive vice-
president, Lionsgate India.
The value-conscious Indian
consumer also stands to benefit
from this model, which will
co-exist with direct-to-con-
sumer offerings, he added.
On the other hand, telecom
operators are benefiting from
higher data consumption due
“Any aggregated offering can-
not work unless it’s a win-win
for both,” Dhanuka said.
Aggregation helps the part-
ners reach out to a wider audi-
ence, raising engagement and
improving revenue, Hiren
Gada, chief executive, Shema-
roo Entertainment Ltd, said.
ShemarooMe, which show-
cases old films, web originals
and devotional videos, has also
started offering Gujarati lan-
guage content.
Sourjya Mohanty, the chief
operating officer of video-on-
demand platform EPIC ON,
operated by IN10 Media Net-
Aggregators are helping small firms such as Lionsgate Play find
their feet and reach a larger subscriber base.
work, said it witnessed more
than 35% increase in revenue
and user growth during the
pandemic. “With millennials
contributing to the consump-
tion spike with an average of
four to six hours of watch-time
daily, it is imperative for OTTs
to be part of a bundling propo-
sition, which is the way forward
tainable revenues dations across plat- frustration from broken view-
and user acquisi- CONTENT IN forms on a single ing experience and helping
tion,” said FOCUS service. They can realize the payoff on the cord
Mohanty. create combined cutting vision,” he added.
EPIC ON plans to AGGREGATORS will watchlists and Bundling and aggregation
expand to 10 coun- help OTT firms to
focus on content as
reduce costs along were key reasons for linear tel-
tries, including key they handle product with the option to evision to reach nearly 240 mil-
African nations, and user experience turn-on or turn-off lion households in India, said
Iraq, Palestine, and individual OTT Ali Hussein, chief executive
Israel. THE trend is likely to apps within the officer at streaming service
grow, as consumer
The aggregation preferences and same subscription.” Eros Now. “The next six to 12
trend is set to grow tough economics OTT services months will see the emergence
due to changing come into play also stand to gain of super aggregators that may
consumer prefer- greater reach and be able to connect shows
ences and tough assured revenues (across platforms) and target
economics, Neeraj Sharma, with minimum guarantee. “As customers at scale at different
managing director, communi- the incremental cost of cus- price points across the coun-
cations, media and technology, tomer acquisition is high, try,” Hussein said.
10 THURSDAY, 3 MARCH 2022
NEW DELHI GLOBAL LIVEMINT.COM

US diplomatic push for Ukraine falters

From the Persian Gulf’s oil-rich monarchies to Israel, US allies tempering their criticism of Moscow in a sign of Russia’s growing influence in the region
David S. Cloud if Russian President Vladimir Putin official said. travel for Ukrainian tourists to the
feedback@livemint.com prolongs the conflict, the official The administration’s relations Middle East trade and tourism hub.
said. with the UAE have seemed even Ukrainian citizens, who had been

T
he Biden administration
is pushing its closest Mid-
dle East partners to back
Ukraine in its deepening
war with Russia and for
help alleviating the economic fall-
out—without much to show for it.
From the Persian Gulf’s oil-rich
monarchies to Israel, US allies and
partners are staying neutral or tem-
pering their criticism of Moscow in
a revealing sign of Russia’s growing
influence in the region.
Saudi Arabia, the de facto Opec
leader, has rebuffed US requests to
pump more oil to help tame surging
crude prices, which topped $100 a
barrel amid concerns over supply
after Russia invaded Ukraine. The
United Arab Emirates, which hosts
US troops, ignored US lobbying and
abstained from a UN Security Coun-
cil resolution condemning the Rus-
sian invasion.
Even Israel, the US’s closest ally in
the region, has refused a Ukrainian
request for weapons and other mili-
tary equipment, such as helmets and
protective vests, according to
Ukraine’s ambassador, Yevgen Kor-
niychuk. Israel fears that choosing
sides too openly against Moscow
could prompt Russian forces in Syria
to respond by interfering with its
long-running air campaign against
Iranian-backed militias there, Israeli
officials said.
A senior US official said the diplo-
matic response in the region has
been more cautious than Washing-
ton would have preferred. But there
is far more agreement than is visible
publicly on steps to calm energy
markets and avoid economic shocks
“We are focused on ensuring we
are putting maximum pressure on
Russia and Putin, while mitigating
the risk to the U.S. and the global
economy,” the official said, adding
that high-level talks with the Saudis
and others are aimed at making
“sure we are coordinated and under-
stand each other’s actions.”
While Saudi Arabia has pushed
back against previous U.S. requests
for additional oil supplies, officials at
the Organization of the Petroleum
Exporting Countries say it isn’t
expected to counter a move Tuesday
by International Energy Agency
members to release 60 million bar-
rels of oil from their emergency
stockpiles in an attempt to tame pri-
ces. Meanwhile, Qatar, recently des-
ignated by the US a non-Nato major
ally—a title not given to the Saudis or
Emiratis—has expressed openness
to divert some gas shipments from
Asia to Europe to help fill potential
disruptions in Russian natural-gas
supply, say people familiar with the
talks between US and Qatari offi-
cials.
Nonetheless, the Ukraine inva-
sion has highlighted how frayed the
oil-for-security bargain between the
US and its Arab partners has
become, with doubts about Ameri-
can staying power in the region. The
US’s abrupt withdrawal from
Afghanistan last summer and its
long-term foreign-policy goal of piv-
oting toward China has pushed
many of its regional partners to seek
out new security and economic ties.
Russia in recent years stepped
into that gap. Moscow has joined
with key Middle East oil producers
US President Joe Biden.
to better manage supply in a deal
that has helped fuel a crude price
rally. It has established partnerships
with Saudi Arabia’s main sovereign
fund and oil company. Russia has
offered alternatives to U.S. arms to
Persian Gulf nations that are under
threat from their
neighbors, while
intervening on
the side of
strongmen in the Syrian and Libyan
civil wars. “Putin has managed to
create leverage with leaders across
the Middle East that, despite spend-
ing billions, the U.S. has not been
able to match,” says Karen Young, a
senior fellow at The Middle East
Institute, a Washington think tank.
“I think it’s a real shock to the U.S.”
Saudi Arabia doesn’t want to jeop-
ardize a deal between the oil cartel it
leads, OPEC and Russia, an alliance
called OPEC+, officials in Riyadh
said. That pact, which allows for pro-
duction increases of 400,000 bar-
rels a day each month, has done little
to stem the rise in oil prices and the
Saudis have pumped less than their
share, according
to the IEA.
Saudi Arabia’s
Crown Prince
Mohammed bin Salman, the king-
dom’s day-to-day ruler, told French
President Emmanuel Macron on
Sunday that Riyadh remains com-
mitted to continue an agreement
with Moscow on oil-production lev-
els, according to the official Saudi
Press Agency.
“Saudi Arabia does not see any
need to take an action and jeopar-
dize this alliance,” said a senior Saudi
REUTERS
official.
U.S. efforts to sway Riyadh have
been complicated by the fraught
relations between President Biden
and Prince Mohammed, known as
MBS, who has been shunned by the
U.S. president for his role in the
death of Saudi journalist Jamal
Khashoggi in 2018.
“The fact that Biden refuses to
acknowledge MBS as the de facto
leader of Saudi Arabia makes the
decision easier for MBS to take the
side of Putin, who, despite some hic-
cups, has been closer to him,” said a
Saudi adviser.
The Biden administration has
been working to rebuild relations
with Saudis, sending high level dele-
gations to Riyadh and arranging a
Feb. 24 call between Mr. Biden and
Saudi Arabia’s King Salman, the U.S.
frostier, highlighted by the Emirati
abstention from a UN Security
Council vote condemning Moscow’s
invasion, despite direct appeals from
U.S. Secretary of State Antony
Blinken.
“We believe that alignment and
positioning will only lead to more
violence,” Anwar Gargash, a UAE
presidential adviser in a tweet on
Sunday. “In the Ukrainian crisis, our
priorities are to encourage all parties
to adopt diplomacy and negotiate to
find a political settlement that ends
this crisis.”
Abu Dhabi’s decision to not back
the resolution also appeared linked
to its effort to win Moscow’s backing
for a separate U.N. resolution con-
demning missile and drone attacks
against the U.A.E. and Saudi Arabia
by Houthi rebels in Yemen.
That resolution was approved by
the Security Council on Monday,
with Russian support. “The strong
perception among diplomats was
that there was a quid pro quo,” said
Peter Salisbury, a senior Yemen ana-
lyst at the International Crisis
Group. The UAE foreign ministry
didn’t immediately respond to a
request for comment.
In another sign of the UAE dis-
tancing itself from Washington, Abu
Dhabi Crown Prince Sheikh
Mohammed bin Zayed al Nahyan,
the country’s de facto ruler, spoke by
phone Tuesday with Mr. Putin about
“bilateral relations”, the energy mar-
ket and “developments in Ukraine,”
according to the UAE state news
agency. Also on Tuesday, Ukraine’s
embassy said in a Facebook post that
the UAE had suspended visa-free
eligible to stay in the UAE for a
month, must now apply for a visa to
visit the country.
As Russian forces were closing in
on Ukraine’s capital city, Kyiv,
Sheikh Mohammed avoided any
public criticism of Moscow, empha-
sizing to Mr. Putin “the need for a
peaceful solution to the crisis,” the
news agency said.
The Ukrainian request for weap-
ons from Israel includes systems that
would help Ukraine defend itself
against Russian missiles, but not for
Israel’s Iron Dome system, which is
designed to intercept shorter range
rockets and missiles, said Mr. Korni-
ychuk, the Ukraine ambassador to
Israel. “We are in huge need of self-
defense weapons,” he said at a Tues-
day press conference. “I do hope that
Israel will consider positively all of
our requests.”
“Israel has taken a measured and
responsible approach, which allows
us not only to protect our interests,
but also to be useful…one of the few
that can communicate directly with
both parties,” Israeli Prime Minister
Naftali Bennett said Tuesday.
The longer the war continues, the
more pressure U.S. partners and
allies in the region are likely to face
to align more closely with Washing-
ton. Though Russia has increased
ties to the region, Moscow doesn’t
offer the same long-term military
support to Riyadh and Abu Dhabi,
said Ms. Young at the Middle East
Institute.
“Russia doesn’t have the capacity
to play that role, not now or in the
future,” she said.
©2021 DOW JONES & COMPANY, INC

Apple, Ford, others retreat from EU inflation peaks as Russia crisis confronts ECB
Russia; VW warns of disruption Paul Hannon
feedback@livemint.com
its growth forecasts for subse-
quent quarters.
businesses seek to cover their
higher costs.
The EU’s top economic pol- However, there is little sign
William Boston

T
exports of vehicles to Russia he eurozone’s inflation icy official Wednesday said the that workers are getting larger
feedback@livemint.com and would cease assembly of rate jumped to a new invasion will weaken the bloc’s pay rises. Germany’s statistics
vehicles with a partner in high in February, pre- recovery, “but without derail- agency Tuesday said that

A
pple Inc., Ford Motor
Co. and Dell Technolo-
gies Inc. joined the ros-
ter of companies retreating
from Russia, while other
global businesses, including
Volkswagen AG, warned of
further supply disruptions fol-
lowing the country’s invasion
of Ukraine. Exxon Mobil Corp.
said late Tuesday it was halting
operations at a multibillion-
dollar oil and gas project in
Russia and would make no fur-
ther investments in the coun-
try following its attack on
Ukraine.
The moves were wide ran-
ging and reflected several
dynamics that have played out
since Russian President Vlad-
imir Putin invaded Ukraine
last week.
Some companies have sig-
naled they wanted to take a
stand against Russia. At the
same time, key parts and com-
modities that typically flow out
of Ukraine, a major agricul-
tural exporter and an auto-
parts supplier, have been bot-
tled up inside the country.
Sanctions against Russia,
prohibiting a range of financial
transactions and exports, have
businesses halting sales and
other operations there. All that
has some companies with deep
Russian roots reviewing their
interests in the country.
Apple said Tuesday it
stopped selling iPhones and
other products in Russia, say-
ing it was “deeply concerned
about the Russian invasion of
Ukraine.”
Silicon Valley’s tech giants
have been facing particular
Exxon Mobil Corp. said it is
holding operations at a gas
project and won’t invest
further in Russia. REUTERS
owns a 30% stake in the
project, alongside Russian
state-controlled oil producer
Rosneft, Japan’s SODECO and
India’s ONGC Videsh. The
company said it is taking steps
to exit from the consortium.
Exxon is also developing
plans for expatriate staff in
Russia to leave the country, if
the employees wish to do so,
according to a person familiar
with the plans. The most of
Exxon’s roughly 1000-person
workforce in Russia is made up
of Russian citizens.
Volkswagen, meanwhile,
said it may shutter its flagship
German plant later this month
because it can’t get parts from
suppliers in war-torn Ukraine.
Volkswagen had previously
idled production at its plant in
Zwickau, Germany, its most
important factory for produc-
ing electric cars, including the
ID.4 that is exported to the US
Supplies of wiring harnesses—
a kit containing wires, connec-
Kaliningrad.
“Due to the current geopoli-
tical situation we will stop our
local production and export
for the Russian market until
further notice,” a spokesman
said. BMW also said that sup-
ply-chain disruptions, such as
the closure of some supplier
plants in Ukraine, would hit
production at some factories
Commodities giant Glen-
core PLC said Tuesday it was
reviewing its business in Rus-
sia, including stakes in EN+
Group PLC—the controlling
shareholder of the world’s
No.2 aluminum producer—
and oil
company
Rosneft Oil
Co.
Glencore joined a growing
list of companies, including BP
PLC and Shell PLC, that are
assessing their longtime ties
with Russia. BP has said it
plans to exit its near 20% stake
in Rosneft, while energy rival
Shell has said it would pull
back from joint projects in
Russia.
“Glencore condemns the
actions taken by the Russian
government against the peo-
ple of Ukraine,” the company
said in a statement, adding that
it was “reviewing all our busi-
ness activities in the country.”
Glencore owns 10.55% of EN+,
which controls United Co.
Rusal International PJSC, and
around 0.5% of Rosneft.
Dell said it suspended prod-
uct sales in Russia. Ericsson
AB, the Swedish telecom-
equipment maker, said it, too,
was suspending shipments
senting the European Central
Bank with a difficult choice
between supporting flagging
growth and clamping down on
accelerating prices driven by
the threat to energy supplies
following Russia’s invasion of
Ukraine.
Russia accounts for around
40% of the European Union’s
imports of natural gas, a key
source of energy for the bloc. It
also supplies around a quarter
of the bloc’s oil imports. While
supplies of oil and gas have
continued to flow from Russia
into Europe, market prices
have jumped to reflect worries
a b o u t
f u t u r e
availabil-
ity.
The European Union’s sta-
tistics agency Wednesday said
consumer prices were 5.8%
higher in February than a year
earlier, an acceleration from
the 5.1% rate of inflation
recorded in January. It was the
fourth straight month in
which the inflation rate hit a
record high, and probably not
the last.
“The war in Ukraine will add
to upward pressure on infla-
tion,” said Andrew Kenning-
ham, an economist at Capital
Economics. “The biggest
Ford reorganizes to run EV, engine businesses separately
Bloomberg
feedback@livemint.com
Russia accounts for around 40% of the European Union’s imports
of natural gas, a key source of energy for the bloc. BLOOMBERG
impact will be via gas and oil
prices, both of which are likely
to be higher for longer than
previously expected. Any dis-
ruption to the supply of gas
from Russia could cause prices
to surge again.”
Much of the pickup in infla-
tion has been driven by energy
prices, which were 31.7%
higher than a year earlier, hav-
ing been 28% higher in Janu-
ary. That was also the fastest
annual increase in a series that
goes back to 1997.
As they prepared their plans
for 2022, policy makers at the
ECB had been counting on a
decline in energy prices—as
demand for winter heating
fuels eased toward the end of
this month—to help reverse
the rise in the eurozone’s infla-
tion rate and bring it back to its
2% target by the end of this
year.
But first the threat, and then
changing company again, and
that requires focus,” chief
executive officer Jim Farley
said in a statement Wednes-
ing it.”
“Russia’s invasion of
Ukraine will likely impact EU
growth negatively, including
through repercussions on
financial markets, further
energy price pressures, more
persistent supply-chain bot-
tlenecks and confidence
effects,” said Paolo Gentiloni,
European Commissioner for
the fact of Russia’s invasion of Economy.
Ukraine has dashed those That presents the ECB with
hopes. Economists at Capital a dilemma. It could tackle
Economics now expect the inflation by winding down its
annual rate of inflation to peak bond-buying program and
at more than 6% this month, open the way for a rise in its
and remain above 5% until the key interest rate later this year
final three months of the year. or early next. But that would
Economists at JPMorgan likely exacerbate the slow-
said they now expect the aver- down in growth, and threaten
age rate of inflation in 2022 to a sharp decline in inflation
be 1 percentage point higher back below its target next year.
than they did before the inva- Alternatively, the ECB can
sion at 5%. By contrast, the leave its stimulus measures in
ECB’s December forecast for place and tolerate a period of
inflation this year was 3.2%, very high inflation to cushion
well above its 2% target. the economy against the fall-
But economic growth is also out from Russia’s war. But that
likely to turn out weaker than might persuade eurozone
the ECB had expected. JPMor- workers that inflation is set to
gan said it now expects the remain high for an indefinite
eurozone economy to stagnate period, and inspire them to ask
in the three months through for significantly higher wage
March, having previously rises than they have secured
forecast an annualized over recent decades. Big wage
increase in gross domestic rises might prompt another
product of 1%. It also lowered round of price increases as
maker also is now targeting Ford’s internal combustion
adjusted earnings before engine business.
interest and taxes of 10% by Implementing major struc-
2026, up from as much as 8% tural change at Ford requires
annual pay rises negotiated by
labor unions or similar groups
amounted to just 1.1% in the
three months through Decem-
ber.
Before the invasion, the
ECB had signaled it was likely
to choose the first course of
action, and announce a time-
table for ending its bond buys
at its March 10 meeting. But
many economists now think
that unlikely, given the
mounting threats to eurozone
economic growth.
“The dramatic conflict in
Ukraine is now weighing neg-
atively on both supply and
demand conditions, making
uncertainty more acute,” said
Fabio Panetta, an ECB policy
maker in a speech Monday. “In
this environment, it would be
unwise to pre-commit on
future policy steps until the
fallout from the current crisis
becomes clearer.”
Over recent days, European
government bonds have ral-
lied as investors bet the ECB
would delay hiking interest
rates. “No one can seriously
expect the ECB to start nor-
malizing monetary policy in
such a moment of high uncer-
tainty,” said Carsten Brzeski,
an economist at ING Bank.
©2021 DOW JONES & COMPANY, INC
Farley has been working
closely with Doug Field, the
former head of Apple Inc.’s
car project, on reviewing

pressure to cut off services and
content to Russia. On Friday,
Ukraine’s vice prime minister,
Mykhailo Fedorov, asked
Apple Chief Executive Tim
Cook to stop supplying Apple
products and services to Rus-
sia, including halting access to
the App Store.
Ford on Tuesday said it was
suspending its joint-venture
operations in Russia, citing
concern over the invasion of
Ukraine.
Exxon, the US oil giant, said
it was preparing to shut down
production from the massive
Sakhalin Island development
in Russia’s Far East. Exxon
tors and terminals to connect a
car’s components—have been
interrupted.
Although production at
Volkswagen’s Wolfsburg plant
is running normally, the auto
maker said it expects more
restrictive production next
week and that it would be
“unable to manufacture in
Wolfsburg” the week after.
Production at its commercial
vehicles plant in Hannover
would also be impacted, as
well as its component facto-
ries, the company said.
Bayerische Motoren Werke
AG, the German luxury-car
maker, said it had stopped
into Russia.
The world’s biggest con-
tainer ship operators—A.P.
Moller-Maersk A/S and Medi-
terranean Shipping Co.—said
they would temporarily sus-
pend services to Russian ports,
even those far from the con-
flict in Ukraine. Maersk said
Tuesday it was halting book-
ings in light of the sanctions
imposed on Russia. Both oper-
ators said they would continue
to move foodstuffs to and from
Russia.
Tim Higgins, Costas Paris
and Nora Eckert contributed to
this article.
©2021 DOW JONES & COMPANY, INC
F
ord Motor Company will
separate its fast-growing
electric vehicle opera-
tions from its legacy combus-
tion engine business in a his-
toric reorganization of the
118-year-old company.
The newly formed Ford
Model e unit will scale up the
automaker’s EV offerings and
develop software and con-
nected-vehicle technology
and services for all of the com-
pany. Ford Blue will focus on
combustion vehicles, cutting
costs and simplifying opera-
tions.
Ford’s ambition will be “to
become a truly great, world-
day. “We are going all in, cre-
ating separate but comple-
mentary businesses that give
us start-up speed and unbri-
dled innovation.”
The shake-up -- along with
new targets for higher EV
production and overall profit-
ability -- sent Ford shares up
as much as 5.4% to $17.60
before the start of regular
trading.
FRESH TARGETS
Ford said it plans to be able to
make 2 million electric vehi-
cles annually by 2026, a big
step up from the 600,000 it’s
aiming for in 2024. The auto-
expected for this year. the backing of the company’s Ford’s operational and manu-
Accelerating Ford’s transi- founding family, which con- facturing structure to prepare
tion to a battery-electric trols the automaker through a for the company ramping up
future has been a special class of its EV offerings.
major focal point The new unit will stock. It’s boosted output of the
for Farley. scale up the EV While Farley electric Mustang Mach-E and
He raised the offerings and has considered prepared more production
a u t o m a k e r ’ s develop software spinning off capacity for the F-150 Light-
wager on EVs either its EV or ning pickup going on sale this
and connected-
months after tak- combustion spring.
ing over as CEO. vehicle tech engine busi- Ford shares have soared
Bloomberg News and services nesses to raise 151% since Farley became
first reported last funds and possi- CEO in October 2020.
month that the bly earn higher While the stock has pulled
company was contemplating market valuations, according back since mid-January, its
a further increase in expendi- to people familiar with the $66.9 billion market capitali-
tures toward EVs, and that deliberations, he and Ford zation was slightly ahead of
Farley had wanted to wall off have said there are no plans General Motors Company’s at
electric operations from for such a move. the close of trading Tuesday.
LIVEMINT.COM NeWs Wrap THURSDAY, 3 MARCH 2022
NEW DELHI 11

TWEETS OF THE DAY

Narendra Modi Charlie Bilello Debjani Ghosh
Prashant Pitti Prime Minister @charliebilello President, Nasscom
Co-founder, EaseMyTrip Infrastructure advancement Crude Oil closed If data is the next frontier for
With the third wave is related to technology, above $100 a barrel innovation and livelihood..
behind us, tier 3 & 4 even public delivery systems today for the first then we have to ensure the
cities are seeing pick-up are being connected to time since July 2014. right governance framework
in travel, but corporate digital platforms. Technol- Its increased 38% to enable a truly inclusive and
travel is still lagging. ogy will play a crucial role in year-to-date and 70% secure ecosystem...it enables
Aatmanirbhar Bharat. over the last year. data sharing with purpose.

SG hopes India RELIEF ON ITS WAY REL to set up war

remove ban on app chest for ventures

S D
ingapore’s ministry of trade and industry iversified financial services provider
on Wednesday said that it hopes India’s Religare Enterprises Ltd (REL) on
ban on popular gaming app ‘Free Fire’, Wednesday said that it is in the process
owned by technology group Sea Ltd , could be of setting up a war chest for new ventures.
resolved quickly. In a regulatory filing, the Non-Banking
Singapore had raised concerns with India Finance Company (NBFC) said that it was
after it blocked ‘Free Fire’ as part of a going to enter new strategic sectors, including
crackdown on 54 apps it believed were sending asset reconstruction, alternate investment
user data to servers in China. funds, insurance broking and digital wealth
“The app is owned by Sea, a technology management, embarking on a new era of
company founded and headquartered in growth.
Singapore,” the trade ministry said. The company said that it was in the process
“We hope that this matter can be resolved of creating a war chest to grow the new
expeditiously,” the ministry said. ventures organically and inorganically.
Sources, including two Indian government REL said, these identified sectors have
officials, have said that Singapore had asked business synergies with existing BFSI
Indian authorities why ‘Free Fire’ was targeted (Banking, Financial Services and Insurance)
in a widening crackdown on Chinese apps verticals of the company and this should have a
India’s information technology ministry did multiplier effect on Religare Group’s business
not immediately respond to a request for and financial performance. PTI
comment on Wednesday. REUTERS

Relief material being loaded in an IAF aircraft on Wednesday. It will be distributed among Indian students evacuated to Romania from Ukraine..... PTI

Government infra spending to Number of air passengers will exceed the 2019

The bank issued Basel-III compliant bonds

Union Bank raises

MINT
revive wagon manufacturing pre-covid level by 3%.

Air pax to reach

HT

₹1,500 cr via bonds 4bn-mark in 2024

T
he total number of air passengers in the

U
nion Bank has raised ₹1,500 crore by
issuing Basel-III compliant bonds to
investors.
The bank has allotted unsecured,
subordinated, non-convertible, taxable,
perpetual, fully paid-up Basel-III compliant
additional tier 1 bonds in the nature of
world will reach the four-billion mark in
Texmaco has an order book of 1,400 wagons and expects the size to grow in FY23 2024, exceeding the 2019 pre-covid level
by 3%, global airlines body International Air
Transport Association (IATA) said on
Subhash Narayan There is a lot of traction for orders now and thus “Now, the focus will be to start building an Wednesday. In 2021, overall traveller numbers
ubhash.narayan@livemint.com the order book position should improve for all order book again here and participate in EPC were 47% of the pre-covid level, the
companies in the space, including Texmaco, tenders. There is a huge amount of work that is International Air Transport Association IATA

debentures, aggregating to ₹1,500 crore.
The bonds are eligible for inclusion in the tier
1 capital of the bank.
To comply with Basel-III capital regulations,
banks globally need to improve and strengthen
their capital planning processes.
These norms are being implemented to
mitigate concerns on potential stresses on asset
quality and consequential impact on
performance and profitability of banks.
Tier 1 capital is the core capital of a bank’s
reserves and it is primarily used to fund business
activities. Banks are required to hold certain
levels of tier 1 and tier 2 capital as reserves so that
they can absorb large losses without threatening
their stability.
Shares of Union Bank of India closed at ₹41
apiece on BSE, up 1.99% from the previous close.
T
he Union government’s record capital Gupta said. coming up for EPC,” Gupta said. mentioned.
expenditure push is expected to boost A lot of work from railways, metro, and other The company has an order book of 1,400 wag- “This is expected to improve to 83% in 2022,
manufacturers of railway rolling stocks projects, including that which involves ballastless ons and expects the size to grow substantially in 94% in 2023, 103% in 2024 and 111% in 2025,” it
that have seen orders stagnate for the tracks and signal- FY23 on the back of added.
last few years, Texmaco Rail and Engi- ling, is also coming big railway tenders. IATA’s director general Willie Walsh said
neering Ltd managing director (MD) Ashish in the engineering, The Union budget has raised capex Also, the private that the trajectory for the recovery in
Kumar Gupta said. procurement and for FY23 to ₹7.5 trillion, with most of sector is expected to passenger numbers from covid-19 was not
“The government’s capex push with infrastruc- construction (EPC) provide more orders changed by the Omicron variant.“People want
ture focus would shoot up demand for rolling segment where the the additional capex expected to go to the company. to travel. And when travel restrictions are
stock. Already, Indian Railways plans to place a company would to infrastructure projects. To expand its lifted, they return to the skies,” he noted. IATA
record level of wagon orders while private con- actively participate, operations, Tex- represents some 290 airlines comprising 83
tainer train operations are also expected to get a according to the maco also aims to per cent of global air traffic. PTI
leg up with operations of portions of dedicated Texmaco MD. enhance its exports and tap markets in the African
freight corridors,” Gupta said in an interview. Rolling stock accounts for about 40% of Tex- continent.
The Union budget has raised capex for FY23 by maco’s total turnover, which stood at ₹1,689 crore Texmaco is targeting Africa, where the com-
a record 35% to ₹7.5 trillion, with most of the addi-
tional capex expected to go to infrastructure pro-
in FY21. EPC accounts for another 40%, while the pany has already bagged an order for 200 wagons
remaining 20% comes from its foundry and other in Liberia, Cameroon, and Mozambique, Gupta
India adds 10GW
jects. small business verticals. said.
solar capacity

I
ndia installed a record 10 gigawatt (GW) of
China opposes solar capacity during calendar year 2021,
AAI urges for smooth coal supply registering a year-on-year (y-o-y) rise of 212
sanctions on Russia per cent, according to Mercom India Research.
The country had made 3.2 GW of solar
India (AAI) has said that for past seven capacity installations during 2020, the

C
hina would not join the United States
and European governments in
imposing financial sanctions on
Russia, the country’s bank regulator said on
Wednesday.
China is a major buyer of Russian oil and gas
and the only major government that has
refrained from criticizing Moscow’s attack on
Ukraine.
“Beijing opposes the sanctions,” said Guo
Shuqing, the chairman of the China Banking
and Insurance Regulatory Commission.
“We will not join such sanctions, and we
will keep normal economic, trade and
financial exchanges with all the relevant
Aluminium companies has been plagued by
a protracted coal shortage. BLOOMBERG
months, the non-power sector across the
country, of which aluminium companies
are a key part, has been plagued by a
protracted coal shortage putting the
sector to a near-calamitous situation that
could also give a severe blow to the
ongoing v-shaped recovery of the Indian
economy.
As the most widely used non-ferrous
metal globally and a critical input for
several core industries in India, any
disruptions in the sector’s production is
expected to have a negative effect across
the country’s industrial landscape.
In its letter, the AAI has said that
research firm said in its latest report.
Cumulative solar installed capacity in India
was approximately 49 GW at the end of
December 2021, the report titled ‘Annual 2021
India Solar Market Update’ said.
“India added a record 10 GW of solar in 2021,
the highest ever in a year. Solar accounted for
62% of new power capacity additions in 2021,
the largest share of power capacity ever,” it
said.
Five of the 11 coal mines put on auction received During the year, large-scale solar projects
single bids. MINT accounted for 83% of installations and saw a
230% y-o-y surge while Rooftop installations
26 companies bids registration increased to 138 %. PTI

T for 11 coal mines

parties,” Guo said at a news conference.
“We disapprove of the financial sanctions,
particularly those launched unilaterally,
because they do not have much legal basis and
will not have good effects.” One of its citizens
was shot and wounded in Ukraine while 2,500
Chinese nationals have been relocated to
he aluminium industry has urged
the government for an urgent and
immediate resumption of coal
supplies to the sector to ensure the
survival of the domestic industry.
In a letter to the Prime Minister’s Office
(PMO), the Aluminium Association of
continued coal shortage being faced by
India’s highly power intensive aluminium
industry has now put lakhs of jobs in
Fed to raise rates
J
jeopardy. SW Steel, Jindal Steel & Power Ltd and
The aluminium industry and its allied
SMEs in India provide jobs to lakhs of
Bharat Aluminium Company Ltd were
among the 21 firms that put in bids in the this month: Powell
people. SUBHASH NARAYAN latest auction of coal mines, the government

safer places in the war-torn country.
Space junk on 5,800-mph collision course with moon
AP said on Wednesday.
In all, 26 bids were received for the auction
of coal mines under the fourth tranche of sale
of coal, the coal ministry said in a statement.
Five of the 11 coal mines put on auction
received single bids.
The Gare Palma IV/6 mine in Chhattisgarh
C
hair Jerome Powell on Wednesday said
that he supports a traditional quarter-
point increase in the Federal Reserve’s
benchmark short-term interest rate when the
Fed meets later this month, rather than a larger
increase that some of its policymakers have
proposed. But Powell did open the door to a

T
he moon is about to get walloped by 3 tons of space junk, a punch that will received a maximum of eight bids. bigger hike in the event that inflation, which
carve out a crater that could fit several semi tractor-trailers. The mine was originally allotted jointly to has reached a four-decade high, doesn’t
The leftover rocket will smash into the far side of the moon at 5,800 Jindal Stel & Power Ltd (JSPL) and Malwa noticeably decline this year, as the Fed expects
mph (9,300 kph) on Friday, away from telescopes’ prying eyes. It may take Sponge Iron Ltd in January 2006 to meet the it to.
weeks, even months, to confirm the impact through satellite images. coal requirement of their respective sponge “I’m inclined to propose” a quarter-point
It’s been tumbling haphazardly through space, experts believe, since China iron plants in nearby Raigarh and Taraimal rate hike to fight the acceleration of inflation
launched it nearly a decade ago. But Chinese officials are dubious it’s theirs. districts, respectively. that has engulfed the economy in recent
No matter whose it is, scientists expect the object to carve out a hole 33 feet to However, the allocations, along with others, months, Powell told the House Financial
66 feet (10 to 20 meters) across and send moon dust flying hundreds of miles were cancelled by the Supreme Court 2014. Services Committee on the first of two days of
(kilometers) across the barren, pockmarked surface. Low-orbiting space junk is Utkal B1 and B2 mines in Odisha received six semiannual testimony to Congress. Most other
relatively easy to track. Objects launching deeper into space are unlikely to hit bids, while Chinora in Maharashtra got four Fed officials have in recent weeks supported a
anything and these far-flung pieces are usually soon forgotten, except by a and three bids came in for Rabodih OCP in similar modest increase, while a few have said
handful of observers who enjoy playing celestial detective on the side. SpaceX Jharkhand. they back a half-point hike or are at least open
originally took the rap for the upcoming lunar litter after asteroid tracker Bill It said a total of 26 bids have been received to a potential such increase. The stock market
Gray identified the collision course in January. AP It can take weeks to confirm the impact of the space junk. AP against 11 coal mines. PTI rose in response to Powell’s support. AP
12 THURSDAY, 3 MARCH 2022
NEW DELHI LONG STORY LIVEMINT.COM

REPORTAGE | TALKING POINTS | IDEAS | INSIGHT | THE BOTTOMLINE

UKRAINE: IN SEARCH OF
A PASSAGE TO INDIA
Indian students share their harrowing experiences and the struggle to get home as bombs fall all around them

Divya Rajagopal
divya.rajagopal@htlive.com
TORONTO

S
eptember 2021 marked a libera-
tion of sorts for Surbhi and her
classmates at the Kharkiv
National Medical University in
Ukraine. After being forced to
attend online classes as the covid-19 pan-
demic spread, they were elated when the
institution announced that it was starting
in-person classes for the fall semester.
Surbhi, who had cleared the highly
competitive National Eligibility cum
Entrance Test (NEET) for medicine, had
decided to pursue a medical degree in
Ukraine as it was far more affordable and
far less competitive than in India.
In December 2020, she received her
admission into the Kharkiv National Med-
ical University, but the covid-19 pandemic
struck. Within months, universities across
Ukraine moved to remote learning.
Surbhi moved back to India but
returned to Ukraine again in September.
Here, she rented an apartment in Kharkiv
with two friends, one from Kolkata and
the other from Ludhiana.
Over the last decade, Ukraine has
become the go-to destination for thou-
sands of aspiring students from India who
want to study medicine. The ease of get-
ting admission and the cost—70% less
than in India—have been the main pull.
This has even led to a mushrooming of
agencies in various parts of India facilitat-
ing admission to Ukrainian universities.
Kharkiv, Ukraine’s second-largest city,
has a population of 14 million people, of
which at least 100,000 are students. But
little did Surbhi and the others know that
six months after in-person classes began,
they would be caught in the crossfire of a
bloody war as Russia invaded Ukraine.
There are several thousands of Indian stu-
dents stuck in Ukraine struggling to get
out.

ENEMY AT THE GATES

R ussia’s full-scale military strike on

Ukraine entered the seventh day on
Wednesday. Kharkiv, in the north-east of
Ukraine, not far from the Russian border,
has come in for intense shelling. As they People gather in a subway, using it as a bomb shelter, in Kyiv (also know as Kiev), Ukraine, on Wednesday.. AP/PTI
see the gruesome images of death and
destruction in Kharkiv on their screens,
the people of Ukraine are getting a
glimpse of what lies in store for other cities I called in the evening to see how Surbhi began. “We have been questioned about mint They left Kharkiv on 1 March. “We man-
if the war does not end. and her friends are doing, only to find they why we didn’t leave two weeks ago, when SHORT UKRAINE’S PULL aged to arrange a bus five hours after
On Tuesday, the Ukrainian government were rushing to the basement. “Would the advisories came in. But we had STORY The number of international reaching Lviv. We had to arrange for food,
said eight people had been killed in a Rus- love to chat but there is no network at all in received mixed signals about the situa- students in the country have risen bus, and train all by ourselves in Ukraine.
sian airstrike on a residential building in the basement,” she said. Some of the stu- tion,” said a student, who did not want to over the last decade The Indian government is helping once
the city. Earlier, Russian missiles had dents planned to make another be identified. WHAT 85,000 we cross the borders. In Ukraine, the train
destroyed an administrative building, kill- attempt to get to the railway The student said an agent fare is free and they even provided some
The high cost of medical 80,000
ing an Indian student. station to take the train to had assured them noth- food. Right now I am totally exhausted but
After their first talks since the war Kiev but noticed the ing would happen. education in India and difficulty 75,000 I would like to talk about what I saw only
in getting admissions in the 76,548
started failed to secure a breakthrough on military unit next to Russia Moreover, the uni- 70,000 after I reach the border.”
Monday, Russia continued to target resi- their apartment Belarus Kiev versity demanded country has pushed thousands
Sumy 65,000
dential areas in Kharkiv indiscriminately. a r m e d and 100% attendance to study in Eastern Europe, RELIEF AT THE BORDER
Poland Kharkiv
where the course is cheaper.
That day, curfew had been lifted for a few regrouping for a
hours, allowing residents to stock up on new round of fir-
groceries and essential items before ing. Perhaps this
Ukraine
and leaving the
country would
result in the stu-
60,000

55,000
53,664
H elp awaits once they reach the bor-
der. In an advisory dated 1 March, the
Embassy of India in Poland said: “Indians
returning to shelter in make-shift bunkers was when 20-year- Lviv dents missing an SO 50,000
2011 2020 presently in Lviv and Ternopil and other
in their building basements. old Naveen She- Odessa entire academic places in western Ukraine may travel at
Surbhi had just returned to her apart- kharappa, a student Black Sea year. “We did not Thousands of Indian students Indians top the pecking order of the earliest to Budomierz border check-
ment after buying biscuits and flour. Even from Karnataka, who want to miss our classes studying in Ukraine are stranded, international students in Ukraine point for a relatively quick entry into
from a distance, she could see the rising was waiting in a grocery and we took this as a mes- particularly in Kharkiv and Sumy, India 18,095 Poland.”
smoke and hear bombs explode. “We had store queue at an administra- sage that our stay was essen- close to the Russian border, Alternatively, they have been advised
Morocco 8,832
to walk to a supermarket close to a metro tive building in Kharkiv, was killed tial,” explained the student. which have faced heavy to travel south for a transit via Hungary or
bombardment. Turkmenistan 5,322
station. There were long queues when the by Russian bombs. He is the first Indian It was only on 24 February, after the Romania. “Those who enter Poland from
market opened up. We stocked up on bis- national killed in the Ukraine-Russian Ukranian government imposed martial Azerbaijan 4,628 any other border crossing where Indian
cuits, and as I entered the apartment we war. law, that universities announced a two- Nigeria 4,227 officials are not deployed may kindly
got a warning that there would be heavy On Tuesday, the government con- week vacation, till 13 March. “Martial law NOW China 4,055 travel directly to Hotel Prezydencki … in
shelling,” Surbhi told Mint on a WhatsApp firmed that Shekharappa had died follow- has been declared in Ukraine. Karazini- Turkey 3,999 Rzeszow where all arrangements have
call. ing the intense shelling of Kharkiv. “With tes, stay at home with your families. With the war expected to been made for their stay and from where
intensify, the Indian embassy in Egypt 3,048
Through the call, the 22-year-old profound sorrow, we confirm that an Remain calm, sensible, take care of your- Operation Ganga flights to India are
stayed composed, describing life in a war Indian student lost his life in shelling in self and your loved ones! Remember, Ukraine has shut down. Students Israel 2,107 being operated regularly,” the embassy
zone that until a week ago was her univer- Kharkiv this morning. The ministry is in safety is a priority now!” read the in Kharkiv have been told by the Uzbekistan 1,585 said.
sity town. Shock and fear have triggered touch with his family. We convey our announcement from Karazin Kharkiv embassy to leave immediately, On 2 March, the evacuation of roughly
Source: Ministry of Education and Science of Ukraine
the instinct for survival, as Surbhi and her deepest condolences to the family,” exter- Medical University. under all circumstances. 1,200 students in Kharkiv’s hostels began.
friends looked to somehow get through nal affairs ministry spokesperson Arin- The students were told Indian embassy
each day. “We pack our bags, fill water dam Bagchi said in a tweet. FEAR IN THE BUNKER officials have left Kiev. An agent named
bottles and prepare food that will last us Shekharappa’s death is a grim reminder
through the day,” she said. When the that the Indian government has an uphill I n Sumy, Niranjana Santhosh, a fifth- dusty. Of course, we know this is a war and
year medical student, has been sending we must adjust, but it is just hard,” she
sirens ring and the explosions get closer, battle in ensuring that the 2,000-plus stu- SOS messages to the MEA’s helpline. Her said. The uncertainty over evacuation
dential areas. She has been urging her Hardeep Singh and his friends walked the
daughter to leave the city as soon as safely students to the railway station for immedi-
possible and not wait for the ministry’s ate evacuation out of Kharkiv. The stu-
the students rush to the basement of the dents trapped in the north-eastern parts of videos show a group of scared students in from Sumy is adding to the students’ frus- assistance. dents were urged to just get on the trains
building. “The last two days we have felt Ukraine, in cities such as Kharkiv and bunkers as the city above gets bombed. tration. Indian government helplines have Calls to Surbhi’s phone remained unan- and leave. It will take at least two days for
the bombing getting closer. We know this Sumy, are safe. These are the cities that are There are 700 Indian students now wait- told students that they will be evacuated swered on Tuesday. On WhatsApp, her everyone to get on a train and many may
because our window close to the border with ing to be evacuated from Sumy, 48 km through the Russian border in a couple of last seen status was 10 am have to wait near the sta-
panes have started rat- Russia. A road journey from the Russian border. days’ time, but they have no way of know- Ukraine time. Her friend tion.
tling,” she said. Our call Shekhrappa’s death is a towards the western bor- On 27 February, in a call with Mint, Nir- ing if this information is reliable. For stu- Sarbori said they had On 2 March, the evacuation of From the looks of it,
lasted for 10 minutes. “I grim reminder that the der with Poland or anjana pleaded for help. “We have food dents in Sumy, the option of taking a train managed to get out from roughly 1,200 students in things will get worse
will charge my phone Romania is 17 hours long, supplies only for two days and we don’t to Kiev is also ruled out as the rail lines are Kharkiv and were going before they get better.
now and call you in the Indian government has an and life threatening, as know when we will get out. It is really not operational. cross-country on a train Kharkiv’s hostels began. An On the evening of 2
evening,” Surbhi told uphill battle in ensuring Russian forces march scary,” she said. A resident of Thrissur dis- On 1 March, the mood in the bunkers in to Lviv in the west, agent and his friends walked March, the Indian
me. towards Kiev. trict in Kerala, Niranjana, 22, said most of Sumy turned sombre as news of Shekhar- barely 70 km from the embassy in Ukraine
that students trapped in the evacuation efforts by the Indian gov- appa’s death reached the students. That border with Poland. It them to the railway station for posted this tweet from
A STUDENT DIES MIXED SIGNALS ernment were concentrated on the west- evening, sirens went off, sending the stu- was going to be a its account (in capital
Ukraine are safe. immediate evacuation.
O n 28 February, sev-
eral students from T he Indian govern- ern side of Ukraine, from where it is far dents scurrying down to the bunkers.
ment has demanded easier to evacuate people. Every night, Power was cut and the street lights were
Kharkiv packed their suitcases in an that Russia and Ukraine provide safe pas- power is cut and students are advised to switched off.
13-hour-long train jour-
ney. “I don’t have much
letters to underline the
urgency): “Urgent advi-
charge. We will text you once we reach a sory to all Indian nationals in Kharkiv. For
attempt to catch a train from Naukova sta- sage to Indian nationals in conflict zones. remain in their bunkers. On the morning While the students cower in their bunk- safe place,” she said, signing off. their safety and security they must leave
tion on the Kharkiv metro line to get to the The students Mint spoke to, however, said of 28 February, Niranjana sent a voice ers, their worried parents are hanging on Aman Joon, 21, from Chandigarh, has Kharkiv immediately. Proceed to Peso-
capital Kiev in the north-cental region of there is no clarity about their situation. message to Mint, saying the situation every piece of information trickling out already made it to Lviv. The student of chin, Babaye and Bezlyudovka as soon as
the country. Upon reaching the station While there were clear signs that Russia seemed “sort of ok”. She and her friends from the MEA. Diya Singh, whose daugh- Karazin Kharkiv National University is possible. Under all circumstances, they
they were told that foreign nationals was preparing to launch an attack, it was took a taxi to buy groceries. ter is stuck in Ukraine, told Mint she was making his way along with 19 classmates must reach these settlements by 1800 hrs
would not be allowed to board the train. not until 25 February that a full-blown war “It is not easy to stay in a bunker. It is too shocked to see visuals of bombings in resi- to Budomeirz on the border with Poland. (Ukrainian time) today.”
LIVEMINT.COM MINT MONEY THURSDAY, 3 MARCH 2022
NEW DELHI 13

How should
you carry ‘Multi-asset investing MINT 20 MUTUAL FUND
SCHEMES TO INVEST IN
your foreign
exchange
is not a silver bullet’ 20
We have hand-picked 20 mutual funds for your portfolio that have jumped
through hoops of good returns, low risk, good portfolio hygiene and our own
qualitative research. We have restricted the choice universe to 10 categories out
of the total 37 and given you at least two options to pick from each.

Navneet Dubey 3-years return 5-years return Corpus

EQUIT Y (%) (%) (₹ cr)
navneet.d@livemint.com
Investors can’t predict how each asset class will perform on a y-o-y basis LARGE-CAP

I
nternational travellers get UTI Nifty Index 16.82 14.61 6,012
all the convenience of trans- PARAS JAIN/MINT HDFC Index 16.53 14.41 4,628
acting abroad when they Adil Bakhshi Category average 16.30 14.01
carry a travel credit card or feedback@livemint.com The asset class trade-off: Win some, lose some EQUITY FLEXICAP
forex prepaid card or both.
When it comes to investing, at the start of any financial year, no one can predict

2
These cards allow them to 020 and 2021 were stand-out which asset class will outperform that year.
Canara Robeco Flexi Cap 20.12 16.84 6,778
spend at merchant outlets, years for equity investors, with Parag Parikh Flexi Cap 25.19 19.71 20,412
book tickets, withdraw cash markets surging northwards. Returns (in %) Gold Indian equity Global equity Indian fixed income
Category average 18.19 13.78
45
from ATMs, etc. This piece will Making money seemed like a
help you understand the dif- cakewalk; all one had to do was get EQUITY SMALL AND MIDCAP
ference between travel credit invested. Not only did equity emerge as 30 Axis Midcap 23.12 19.76 16,754
cards and prepaid forex cards. investors’ favoured asset class, but several SBI Small Cap 27.86 20.47 11,288
Travel credit cards: people also went overboard with the equity Category average Midcap 21.91 14.38
These cards usually cater to allocation in their portfolios. However, 15
Category average Smallcap 25.53 16.30
customers who spend heavily that strategy seems to have come undone
on travel. However, the card in 2022. Equity markets have fallen from 0 EQUITY (TAXSAVER)
becomes expensive if travel- their record highs. Also, volatility has Canara Robeco Equity Tax Saver 22.57 17.82 3,209
lers withdraw foreign cur- become the order of the day. For many, this
Mirae Asset Tax Saver 21.68 18.03 10,972
rency from ATMs abroad. has come as a harsh reminder of the impor- -15
They have to pay finance char- tance of diversification. While investing, Category average 17.57 13.32
ges, foreign currency transac- diversification is no less critical than select-
tion fees, and withdrawal fees. ing the right avenues, a multi-asset
-30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
HY BR ID
Forex cards: A forex card is approach is key to successful investing. BALANCED ADVANTAGE
Calendar year returns. Past performance may or may not be sustained in future. Returns mentioned are in
a pre-loaded foreign currency How multi-asset investing works: CAGR terms. Data as on 31 Dec 2021. Nifty 500 TRI indicates India Equity; MSCI World Index indicates Global Edelweiss Balanced Advantage 15.88 12.44 7,353
Equity; CRISIL ST Bond Fund Index indicates India fixed income.
card that helps you make pur- Simply put, multi-asset investing entails Source: MFI Explorer & Morningstar Direct
ICICI Prudential Balanced Advantage 12.85 10.56 38,544
chases, withdraw cash in for- investing across various asset classes such Category average 11.51 9.56
eign currency, and enables as equity, fixed income, cash, and gold.
spending on your overseas Under varying economic and market con- equity and fixed income. India’s fixed placed. Practically all investment skills one ARBITRAGE
travels. ditions, different asset classes behave dif- income outshone its peers in 2015. Indian can think of are required for managing a Kotak Equity Arbitrage 4.77 5.32 25,013
Raj Khosla, founder and ferently. Each asset class has a performance equity staged a comeback in 2017, only to successful multi-asset strategy: from stock Tata Arbitrage 4.93 NA 11,192
MD, MyMoneyMantra.com, cycle of its own. Being diversified enables falter in 2018. Instead, gold clocked a good selection at individual asset class level to Category average 4.58 5.08
said forex cards attract a fee investors to benefit from different market showing in 2018 on a relative basis. Both asset allocation at the overall level. Since
every time currency is moves/cycles. Furthermore, multi-asset global equity and gold impressed in 2019. such execution requires multiple skill sets 1-year return* 3-years return Corpus
reloaded or the card is investing can aid in curbing portfolio vola- This clearly shows, investors can’t predict which are rarely found in one individual, DEBT (%) (%) (₹ cr)
renewed. “The other is a cross- tility. A decline in one asset class can poten- how each asset class will perform on a year- fund houses employ multiple specialist SHORT TERM
currency charge. It applies tially be offset by an uptick in on-year basis. Neither should teams to manage these. And all this is avail- HDFC Corporate Bond 5.35 8.33 27,400
24,430
when you spend in a currency another asset class. Over investors indulge in such an able at a very low cost. For example, ICICI IDFC Corporate Bond 5.44 7.61 19,598
11,980
different from the currency on longer time horizons, the Multi-asset exercise. The easiest option to Prudential passive multi-asset fund of fund
Category average 5.27 8.03
the card,” said Khosla. How- importance of de-risking the investing helps circumvent this is to invest expense is capped at a maximum of 1%. As
ever, you can choose to load it portfolio cannot be over- buffer portfolio across asset classes through a on January month-end, the portfolio has
CREDIT RISK
in the currency of the country stated. When it comes to volatility while well-constructed multi-asset exposure of 27.9% to domestic equity ETFs, 9,038
HDFC Credit Risk Debt 7.31 8.85 24,430
you are travelling to or opt for investing, at the start of any portfolio. 25% to foreign ETFs, 34.3% to domestic
people stay ICICI Prudential Credit Risk 7.07 8.54 8,436
11,980
a multi-currency forex card if financial year, no one can pre- The mutual fund route: debt ETFs, 4.1% to gold ETF, and 8.7% in
you plan on travelling to dif- dict which asset class will out- invested until the Mutual funds with their short-term debt, etc. Category average 8.92 5.23
ferent countries. As long as perform that year (See next upturn diverse categories can be Multi-asset investing is not a silver bul-
6-month 1-year Corpus
you make payments in the cur- graphic). At best, what an excellent tools for multi-asset let. Rather, it is intended to help investors DEBT (LESS THAN 1 YEAR) return* (%) return* (%) (₹ cr)
rency available on your forex individual can do is make an investing. Particularly note- buffer portfolio volatility while staying
HDFC Money Market 1.81 3.93 14,185
card, no markup fee will be educated guess. This is akin to guessing the worthy are multi-asset allocation funds/ invested until the next upturn. In conclu-
charged, making it the most winner at the start of a sporting event. Be it funds of funds, wherein investments are sion, multi-asset investing enables inves- Kotak Money Market 1.84 3.84 11,463
economical option compared the FIFA World Cup winner or the asset made across various asset classes: equity tors to balance risk with reward, by allocat- Category average money market 1.74 3.76
to a travel credit card. class, winners keep changing every year. (domestic and global), fixed income, gold, ing monies to both risky and relatively safer
Returns since Date of Corpus
Which is better? Over the past five FIFA World Cups, we had and cash, and in some cases, Infrastructure assets. Also, from an investor’s perspective, OU T OF T HE BOX launch launch (₹ cr)
Sachin Vasudeva, associate five different countries lifting the Cup; Bra- Investment Trusts (InvIT) and Real Estate it simplifies the investment process. Inves-
BHARAT Bond ETF - April 2031 4.39 23 Jul 2020 10,492
director and head of credit zil in 2002, Italy in 2006, Spain in 2010, Investment Trust (REITs). Apart from the tors would do well to recognize the benefits
cards, Paisabazaar.com, said Germany in 2014 and France in 2018. convenience of investing in multiple asset of multi-asset investing in the quest for Motilal Oswal S&P 500 Index Fund 23.84 28 April 2020 2,624
that travel cards offer travel- Likewise, Indian equity excelled in 2012, classes through one fund, investors also achieving their financial goals. *Absolute Returns
focused benefits such as com- but 2013 belonged to global equities. 2014, gain from the fund house expertise of Adil Bakshi is Head of Corporate Commu- Returns as on 28 Feb 2022; Corpus data as of Jan 2022; Growth option in regular plans has been used
Data and analysis by CRISIL Research Compiled by Neil Borate
plimentary lounge access, air was a noteworthy year for both Indian determining which asset class is favourably nications at ICICI Prudential AMC.
mile earnings, extra benefits ISTOCK

on travel bookings, and more.

However, most of these do not
feature a low/any forex
markup fee, which comes as a
major disadvantage for inter-
Can you earn ₹2 cr in 5 years by investing ₹2 lakh per month in SIPs?
national travellers. Even if a ISTOCK

card is handsomely rewarding
you for international transac-
tions, the actual value will be
nullified or even be in deficit if
cross-currency markup char-
ges apply at the usual rates.
Sudarshan Motwani,
founder and CEO, BookMyFo-
rex, said, “Since forex cards are
prepaid instruments for a spe-
cific value, your regular bank
account/ credit card is not
exposed to any risk. Moreover,
in the case of forex cards, the
exchange rates are locked on
the day of loading, whereas
credit cards accept the prevail-
ing exchange rate as on the
date of settlement. So, if the
rates happen to be higher on
that day, you will face extra
loss.”
However, experts also sug-
gest that one must keep travel
credit cards as backup options.
Srikanth Meenakshi
I will retire in May 2032
and to garner a corpus of
₹1.35 crore, I would like to
invest ₹45,000 per month
in mutual funds. I also want
to park a portion (25-30%)
of the contribution in debt
funds. Will it be prudent to
book profit on one or two
occasions during the inter-
vening period between
now and my retirement
and park the amount in a
select debt fund or reinvest
in the best performing
funds.
—Amitava Majumder
You desire to accumulate
₹1.35 crore in about 10 years.
The monthly systematic
investment plan (SIP) required
for you to get there would be
ASK MINT
m MUTUAL FUNDS
closer to ₹60,000 rather than
₹45,000 you are planning to
invest now (assuming a 12%
portfolio return over the
period). So, you would need to
raise your investment amount
gradually to reach the target.
This so-called step-up SIP, can
be used effectively in your sit-
uation. You are proposing a
portfolio that is 75:25 in terms
of equity to debt.
For a 10-year investment
horizon, that would make it a
moderately risky portfolio,
and given that you are close to
retirement than you are to the
start of your career,, that is a
fair risk profile to adopt. You
can have a compact six fund
portfolio with four equity
funds and two debt funds with
the amount split 75:25
between the two asset classes.
For equity funds, you can go
with Axis Bluechip fund, Mirae
asset emerging bluechip fund,
Parag Parikh Flexi cap fund (or
Canara Robeco fund if the
PPFAS fund is not open for
investment), and Axis midcap
fund. For debt funds, you can
choose HDFC Corporate bond
fund and ICICI Credit risk
fund for the time period of
your investment.
Given that you have a bal-
anced portfolio between
equity and debt asset classes,
this should be a straightfor-
ward proposition. If at any
point, you feel that the mar-
kets are high and you want to
book profits, it is likely that at
such a point your portfolio’s
asset allocation is skewed
towards equity. All you would
need to do then is to ‘rebal-
ance’ your portfolio and move
enough money from your
equity portfolio to your debt
portfolio such that the asset
balance is back to 75:25. You
can also do this exercise peri-
odically (once a year) even if
markets are not heating up. In
some situations, you may be
moving money from your debt
funds to equity funds, which
would also be a fair move if
equity markets are in a down-
turn.
I am 45 years old and have
an aggressive risk appetite.
Can I invest ₹2 lakh per
month in SIP and get a cor-
pus of ₹2 crore after five
years?
— Name withheld on request
If you invest ₹2 lakh per
month for 5 years (total of 60
installments), you would have
invested ₹1.2 crore over the
period. If you assume a 12%
annualized return over the
period, you can expect to have
₹1.7 crore at the end of the
investment tenure.
To reach a goal of ₹2 crore
given the same assumptions,
you would need to invest ₹2.4
lakhs a month. Both these cal-
culations assume a high-risk
portfolio filled with equity
investments, which is not an
ideal match for the time frame
of five years. Any portfolio
design for such a short to
medium time frame will
require the addition of debt
funds to keep it balanced.
Hence, if your risk appetite is
truly aggressive you can go for
an all-equity portfolio such as
UTI Nifty index fund, Canara
Robeco Flexicap fund, Axis
midcap fund, and SBI small
cap fund. If you would like to
moderate your risk level a bit
in keeping with your invest-
ment time frame, you can
replace the smallcap fund with
a debt fund such as HDFC
Credit risk debt fund.
Srikanth Meenakshi is
co-founder, PrimeInvestor.in.
Do you have a personal
finance query? Send in your
queries at
mintmoney@livemint.com
and get them answered by
industry experts.

ARE EMERGING MARKETS LIKE INDIA CHEAPER THAN THE US MARKET?

was about 11 times seen in May 2003. After the recent correction 40-year historical average P/E of 21.92) which explains why
seen in the domestic markets followed by that in the global mar- investors are moving towards global and US markets purely on
POWER kets, the 12-month forward P/E ratio of the Nifty 50 index has
come down. However, the market cap-to-GDP ratio for the index
valuations perspective after the recent corrections. The S&P 500
index saw a record level of 4,796 on 3 January, with a forward
POINT is about 98% and according to the original Buffet Indicator, which 12-month P/E multiple of around 21-22x at that time. The index
implies that the markets are ‘modestly overvalued’. Goldman has corrected close to 12% from its January peak currently and
MENAKA REDDY Sachs, in its report in January, stated that it prefers emerging this has been the major catalyst of the decrease in the P/E ratios
economies like Mexico over India for investments among emerg- to current levels. Additionally, at the sectoral level, some of the
Respond to this column at ing economies largely due to lofty valuations seen in the Indian S&P 500 sectors like healthcare, and
feedback@livemint.com markets. However, the recent corrections seen on the index According to communication services are all trading
made most analysts re-examine their views which saw some cool- historical data, below the five-year sectoral averages

G
oing back to the fundamentals of investing and market
valuations let’s understand if the markets are currently
overvalued or undervalued. The question becomes sig-
nificant in the light of price corrections after geopolitical tensions
between Russia and Ukraine that saw indexes correct across geo-
graphies. We will look at the price-to-earnings (P/E) ratio which
is a popular financial metric that helps investors analyse the over-
all valuations of the indexes.
How expensive is the Nifty 50 index
The Nifty 50 index is currently trading at about 18.5-19x12-
month forward P/E which is close to its historical average P/E of
19. The index was trading at 22-23x forward P/E until recently.
This multiple was also the highest in comparison with other
emerging markets as per data from the Goldman Sachs report in
January. The Nifty 50 index saw its highest levels of P/E ratio of
around 40x in February-March last year and the lowest P/E ratio
off in the valuations. Although the valuations are down from the
highs seen last year during the pandemic, and the beginning of
2022, analysts believe that the ongoing headwinds are likely to
see further corrections in the markets. The earnings growth of
28.3% for FY22 and 11.7% for FY23 may still work in favour of the
bulls partially in the domestic markets which may likely prevent
markets from a steeper correction.
How expensive is the S&P 500 index
Moving on to the global markets, we saw the S&P 500 index
trading at 2,400 levels in March 2020 when markets saw a huge
sell-off at the beginning of the pandemic and that was when mar-
kets were considered undervalued. The S&P 500 index is cur-
rently trading at 4,300 levels and saw its recent lows of 4,225 on
23 February. The forward 12-month P/E for the index is around
18.5x as against the five-year average of 18.6x. Its forward
12-month EPS estimate is about $229. However, the S&P 500
and below the S&P 500 index five-year
S&P 500 average P/E ratios.
average P/E Conclusion
ratio for the last Emerging markets including India
index is still trading above the 10-year, 20-year and 25-year his- 40 years is 21.92 are mostly taking a hit on the back of
torical average P/Es of 16.7, 15.5, and 16.5 respectively at current slowdown in China, rising crude oil
levels. prices, higher inflation in the global
According to historical data, the S&P 500 average P/E ratio for markets and more recently the worsening Ukraine-Russia crisis
the last 40 years (1981-2020) is about 21.92. The highest P/E on which are leading to fund outflow from the markets. However,
the index was around 123.73 in May 2009 (after the market crash), valuations of US and Indian stocks have come off from their
and the lowest was 5.31 seen in December 1917. Markets are cur- stretched levels of last year and are now trading closer to their
rently trading closer to the historical five-year average P/E and historical averages. If you look at P/E for two indices: Nifty 50 and
lower than the highs of last year (P/E of 45.89 seen in July 2021). S&P 500, the forward PE multiple is extremely similar. Robust
When we consider the earnings estimates of the index, it is cur- earnings growth in the coming quarters are likely to further bring
rently trading at about 19.25 times the 2022 earnings estimates down the PE multiple for the S&P 500.
and 17.50 times the 2023 earnings estimates (lower than the Menaka Reddy, is associate, Investment Research (US Equities)
14 THURSDAY, 3 MARCH 2022
NEW DELHI VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | OTHER SPHERE

REUTERS

The systemic problems that have

kept Indian schooling ineffective
We must address a wide range of factors that prevent kids from learning what they should in school

public expenditure on education, we Fifth is the administrative leadership

have been well short of our commitment
of 6% for decades. This underlies many
of the other problems. An inadequate
number of teachers and (in some states) a
large number of teachers with short-
term contracts and low remuneration.
Inadequate staffing for other needs, such
as community outreach. A lack of basic
ANURAG BEHAR facilities in schools such as toilets, run-
is CEO of Azim Premji Foundation ning water and electricity, alongside
poor maintenance. Deteriorating nutri-
tional standards of the mid-day meal
across years. Poor quality and inade-
and management of the system. What-
ever the design of the system, leadership
makes a difference. In many states,
under good leaders, the difference they
make is visible. But too often, the leader-
ship is shoddy. Or just incompetent and
indifferent. But even more often, it is a
lack of understanding that all adminis-
trative actions have educational conse-
quences, which must be assessed by the
appropriate educational principles, and
not by what is administratively expedi-
ent. For example, continuous non-edu-

India must stay neutral

quate teaching-learning-material. All of cational demands on the time of teachers
this and more affects the motivation and are made, ranging from election duty to

I
n my last two columns, I asked, ‘Why efficacy of teachers, as also the school anti-malaria campaigns; their priorities
are children not learning what they atmosphere and children’s engagement. are continually and rapidly changed, dis-
should in school?’ and explored the The third is our dysfunctional teacher orienting them and distracting them

as Cold War II worsens very basics: reasons relating to children

and then to teachers. This week, let us
similarly explore the range of causes that
are systemic. Let’s note at the outset that
education system. We have one of the
world’s worst and most corrupt teacher
education systems. The National Educa-
tion Policy 2020 confronts this problem
from their main role. Further, flawed
notions of how to develop good text-
books inform decisions, and ineffective
implementation of sound policies has
many of these causes are intertwined in head-on. But the current reality is that become the unfortunate norm.
complex ways. most of our 9 million teachers have Sixth is the weak capacity of key insti-
The West is up against not just Russia but other adversaries too with a convergent interest in The first set of issues arise from the undergone a B.Ed or D.Ed programme of tutions in school education. We have
‘design’ of our schooling system. We very poor quality, if they’ve done one at had the foresight to imagine institutions
ending US dominance of the world. How it’ll play out is uncertain. We should hedge our risks made a choice a few decades ago that all. There are also many ‘colleges’ that that will lead and support some of the
each habitation must have a primary just sell degrees, without students even most important educational matters,
school within 1km to ensure access for attending classes. Most teachers who are such as curriculum and textbook devel-
little children. This has worked really effective are so because of their own opment, design of assessment systems,

T
he end of Cold War I in 1991 was
momentous. The Soviet Union
cracked up, the US claimed victory
in a moment Francis Fukuyama
called “the end of history”, and India
adopted market reforms in a move
spurred by a Gulf War oil-shock but endorsed
by the clarity of an open economy’s advantage
over autarky. Does the start of Cold War II, as
Russia’s invasion of Ukraine presages, mark a
‘return of history’ that may call for another big
strategic shift? On Tuesday, US President Joe
Biden’s state-of-the-union address sought to
convey America’s “resolve that freedom will
always triumph over tyranny”, with Russian
aggression held up as the example of what had
to be defeated. The US-led West’s arsenal is
composed of sanctions aimed at hitting Russia’s
economy, which had integrated itself with the
Western world’s over three decades. Clamps on
reserves held in the West by Russia’s central
bank deprived Moscow of a currency prop as
money began to flee, its rouble got scrunched,
imports turned inflationary and asset values
China’s in the activation of alternatives that
could get around curbs enforced by the US.
Technology enablers do exist. In some ways,
crypto transfers had already put old systems on
notice, and a Chinese-run digital yuan being
given such a role is not beyond the realm of
plausibility. While the scope of sanction-foiling
cooperation across the great Asian landmass
remains hazy, its very possibility could also
restrain Russia from using an oil-export
embargo as a retaliatory weapon, given China’s
vulnerability to it. The stance adopted by the
world’s original weaponizer of oil, Opec, which
effected a drastic price spike in 1973, could also
prove significant. After a recent attempt by
Moscow to play its own game was met by a
Saudi oil glut that throttled its revenues into
complying with the cartel’s calculus, Opec+ has
stuck to an uneasy truce, but the Ukraine war’s
impact on this club’s unity defies easy analysis.
No less shrouded in a thick fog of war were
Pakistan’s confabulations with Russia soon
after hostilities broke out. While Moscow’s
relations with Islamabad have blown hot and
well and has been a key reason why most
children in that age-group are now in
primary schools. But it has created a few
intractable problems.
Each primary school, since it serves
one habitation, has a small number of
children across classes 1 to 5. Because of
the small student group, there is often
only one teacher, or perhaps two. They
teach five classes simultaneously, and
also all three subjects. Teaching is com-
plex and challenging as it is. But multi-
class teaching of many subjects increases
difficulties manifold. Also, with so many
single- or two-teacher schools, teachers
are isolated and hard to support.
The second set of issues arise from
inadequate investment in public educa-
tion, resulting in either inadequate or
poor-quality resources. With roughly 3%
of gross domestic product (GDP) as our
www.livemint.com
hard work and initiative. We cannot
overestimate the deeply corrosive influ-
ence of a dysfunctional and corrupt
teacher education system on overall
education, not only on basic learning.
The fourth is the design and culture of
our education system which makes it
rigid and centralizing rather than flexi-
ble and empowering—which is what’s
needed for effective schooling and learn-
ing. Uniform norms or diktats across the
state, cookie-cutter training for teachers
irrespective of their actual needs, an
‘inspectorial’ regime rather than a prob-
lem-solving one. The list goes on. All
exacerbated by a culture which treats
teachers as scapegoats and is bereft of
genuine social-human engagement,
which is essential to education. Result-
antly, teachers are largely unsupported,
demotivated and disempowered.
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Saturday, March 3, 2012 Vol.5 No.53 `5.00 16 PAGES
12
+ 20 PAGES LOUNGE + 4 MARKETS PAGES
professional development support for
educators and more. These institutions
range from ones right there on-the-
ground to those which are for districts,
states, or for the entire country. Too
many, if not most, are ineffective, lacking
in capacity and embroiled in internal
politicking, while equally enmeshed
with external politics. Instead of leading
our educational thinking and practice,
they are dragging us down. Honourable
exceptions prove that this need not be
the case. Those who should lead the
response to India’s crisis of learning have
neither the capacity nor the intent. Our
teachers and children are left to fend for
themselves.
There are other systemic factors, and
equally there are societal factors behind
the lack of learning in our classes. In my
next column, I will take up those.

dropped; rate hikes and capital controls may be cold over the past few years, our neighbour’s Q&A: Draftfcb’s Fedoris on
need for analytics >4
ECONOMY: Compensation row may
further delay GST roll-out >3

unable to restore stability. Yet, we have seen no tilt away from the West—a bet on Chinese POLICY: Fertilizer ministry likely to

The desire for liberty

EXCLUSIVE PARTNER make changes in new urea policy >5
WSJ: Game changer for Zynga >12

sign of a Kremlin back-down, despite the quag- domination of Asia in time to come—was visible SENSEX 17,636.80 Æ 52.83

REVIEW PETITION
NIFTY 5,359.35 Æ 19.60 DOLLAR `49.50 Æ `0.29 EURO `65.46 Æ `0.02

Ramesh wants
GOLD `27,805 Æ `125 OIL $124.14 Æ $0.58

QUICK EDIT

mire it might find itself in as it eyes Kyiv, and in the sordid episode of America’s withdrawal Govt finally TOUCH DOWN
Apple Inc. is hosting a media event on Wednesday, where it is expected
to unveil a faster, better-equipped version of its popular iPad tablet to
thwart increasing competition from deep-pocketed rivals such as
Amazon.com Inc. The third iteration of the device is expected to boast a
to sidestep
food security
Bill categories
EU’s fiscal
medicine may be ingrained in
defends O
faster, quad-core processor, and a higher-definition screen. n Friday, 25 leaders
of the European
9.15 B Y L IZ M ATHEW Union (EU) signed a treaty
IPAD SALES

every human breast,

liz.m@livemint.com meant to ensure fiscal
More than ························· discipline in the group of
20 8

domestic discontent stirred by financial hard- from Afghanistan. Speculation has also arisen of
55 million NEW DELHI countries (see Page 12).

2G policy R
units sold (in million) iPads 6.87 ural development minister The treaty prescribes a
*Revenue (in $ billion) sold
Right-hand scale 6.05
Jairam Ramesh wants to balanced budget rule for
15 6
15.43 sidestep categories proposed signatory nations. When
4.61 under the food security law to the rule is breached, it
make sure that the welfare im- will lead to imposition
10 4
2.84 11.12 pact of the legislation isn’t nul- of a fine of 0.1% of the
2.79 9.25 lified because a count that’s violating country’s gross
Telecom department To this, the court asked: 2.17 7.33 central to it hasn’t been com- domestic product.

ships may take too long to shake its authority. the four-way Quad’s function being taken over
2
seeks review of licence “Who will address the court for 5 pleted across large parts of the It may be the ideal

but so is the potential

DoT on the decision-making 4.19 4.69 nation. solution to a profligate
cancellation judgement, process?” 3.27 Ramesh wants 25kg of continent’s problems.
questions court’s Vahanvati: “I don’t want to 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0 foodgrain given every month In practice, it makes for
do it. There could be larger im- FY 2010 FY 2011 FY 2012 to 75% of the rural poor and volatile politics as voters
power of judicial review plications. If I defend it, then it 50% of the urban poor at subsi- across the EU feel they
looks like we are defending 2010 2011 2012 dized rates. are “powerless” and the
B Y N IKHIL K ANEKAL what is being investigated (by The National Food Security European Commission—
nikhil.k@livemint.com the Central Bureau of Investi- J F M A M J J A S O N D J F M A M J J A S O N D J F M Bill, which was introduced in a virtually unelected

Critically, Russia could decouple itself from the by a new Aukus alliance of Australia, the UK
························· gation, or CBI). If I don’t (de- Parliament during the winter bureaucracy—takes
NEW DELHI fend it), then it appears that session and is currently being major decisions. In this

E xactly a year after the In- what was done was wrong. In 27 Jan 3 Apr 3 May 2 Mar 7 Mar studied by a parliamentary case, too, the European

dian government told the
Supreme Court that it
was “hazardous” to take a stand
for complacency,
these circumstances, it is haz- Launches Released One million Launches iPad2 iPad3 standing committee, aims to Commission will make
ardous for me to say anything.” iPad in the US iPads sold to be provide cheaper foodgrain to the timetable for effecting
The government, through a
iPad 09:41 AM

launched the poor to ensure that people fiscal corrections. The

Wednesday
340

27
on the telecom policy, it finally review petition settled by solic- iPad 3? Calendar Contacts Notes Maps
“live a life with dignity”. treaty kicks in once 12
defended its first-come-first- itor general Rohinton F. Nar- 73 The Bill, considered to be euro zone countries
Speculated to be
Weather YouTube iTunes App Store

served (FCFS) norm and argued iman’s office, told the court the brainchild of the National have ratified it.

West at a lower cost than the US estimates. and US aimed at glaring China down. All these
that an auction of 2G spectrum that it had not applied its mind same size as iPad 2 Advisory Council (NAC) led by Europe may now have
Camera FaceTime Camera Photo Booth

or other natural resources was
not in public interest.
The department of telecom-
and fully thought through the
consequences when it ordered
that all natural resources such
new ‘retina display’ screen Settings
ruling Congress party chief So- the instrument to deal
faster processor and more RAM nia Gandhi, seeks to grant pri- with a vexed problem.
ority beneficiaries the right to The danger is it will create
higher quality cameras
1

munications (DoT) filed a re- as spectrum will be allocated 7kg of foodgrain per month per another set of problems

confusion, and cowardice.

Web Mail Photos iPod

view petition before the Su-
preme Court on Friday, laying
down grounds for the court to
partially set aside its 2 Febru-
only through public auction. 4G LTE wireless networks person at `3 per kg for rice, `2 that will be far more
The adverse effects of com- difficult to resolve.
* Includes revenue from related products and services. LTE: Long-term evolution Source: Reuters
petition between established TURN TO PAGE 3®
SANDEEP BHATNAGAR/MINT
telecom operators and new en-

If global geopolitics differs vastly from what it developments could make us wonder if New
ary judgement through which
122 telecom licences were can-
celled, to the extent that an
auction to allocate spectrum
and other natural resources
was not mandatory.
Questions were also raised
trants had been overlooked by
the court, said the govern-
ment, reasoning that the entry
price of spectrum of `1,658 How the ONGC RAISING STAKE
crore (which was discovered in
a 2001 auction) was retained in share sale Maran pumps `100 cr into SpiceJet
the 2007-08 allotment of spec-
fiasco unfolded

And losing has a price.

by the government on the con- trum in order to maintain a INDIA TODAY IMAGES
stitutional nature of the power “level-playing field”. B Y T ARUN S HUKLA

was 30 years ago, China’s rise is the big reason. Delhi’s long-held neutrality is the best way to
of judicial review of policy ex- The government told the B Y A NIRUDH L ASKAR, tarun.s@livemint.com
ercised by the court in its court that forcing an auction of P RAMIT B HATTACHARYA & ·························
judgement, in which FCFS was spectrum would preclude it J OEL R EBELLO NEW DELHI

found to be violative of Article

14 of the Constitution (right to
equality). The doctrine of sep-
aration of powers between the
executive and the judiciary has
also been incorporated in the
from increasing teledensity
(good network coverage) in ru-
ral and semi-urban areas,
which is where it was steering
new operators towards,
through the existing policy.
·························
MUMBAI
M edia tycoon Kalanithi Ma-
ran will pump about `100
A day after state-run Oil and
Natural Gas Corp. Ltd’s
(ONGC) share auction was al-
crore more into SpiceJet Ltd in
April and increase his stake in
the budget carrier to 48.6%. It
most written off as a disaster be- will be the second cash infusion

Invasion-eve talks between Moscow and Bei- secure our future as this Cold War II worsens.
government’s petition.
The government also de-
fended the Telecom Regulato-
ry Authority of India, which
had been criticized in the
judgement, arguing that the
court had not fully applied its
mind to recommendations
“This wide disparity would re-
sult in an unfair and anti-com-
petitive advantage being given
to incumbent telecom opera-
tors who acquired the said li-
cence and spectrum for a less-
er cost as compared to the cost
of acquisition which will be
fore a late-night scramble to an- into SpiceJet in six months by
nounce that it had been fully Maran, founder of Sun TV Net-
subscribed, the Securities and work Ltd, who spent about `130
Exchange Board of India (Sebi) crore in October for an addition-
initiated a probe into how India’s al 5% of the Gurgaon-based air-
first offer for sale (OFS) issue line company.
turned into a near fiasco. The proposed cash injection
The start of the crisis and its by Maran, which will be used to
Fresh equity: A file photo of Sun TV Network founder Kalanithi Maran.

jing had bound both of them closer together. As we found after 1991, the Western model is a
from the expert body among paid by the new entrants,” said resolution was pieced together pay for expansion and to cush-
other factors, based on which the petition. on Friday after conversations ion losses, comes at a time when The cash infusion will increase Maran’s stake in SpiceJet to 48.6%.

DoT had issued licences.
Former telecom minister A.
Raja and two telecom compa-
nies, Unitech Wireless Ltd and
Sistema Shyam TeleServices
Ltd (SSTL), also filed separate
review petitions on the court’s
Raja, who was not a party to
the licence cancellation case,
contended that the observa-
tions in the court’s 2 February
judgement unequivocally prej-
udice the criminal trial he is
facing in the special CBI court.
MA D E L E I N E A L B R I G HT
with various officials involved, India’s other domestic airlines
all of whom spoke on condition are struggling to bring fresh eq- can—not just talking, but also 0.48% to `20.70 on Friday as the
of anonymity due to the sensitiv- uity as they battle debt and loss- demonstrating his support to the Sensex edged up 0.3%.
ity of the issue and also because es caused by higher operational company in very tangible terms.” SpiceJet has a 16.3% share of
of the fact that the various stake- costs and increased fuel prices. The new shares will be pur- India’s domestic aviation mar-
holders are blaming each other. Creditors have asked airlines chased at a premium to the cur- ket. With a fleet of 40 aircraft, it
The key entities involved are such as Kingfisher Airlines Ltd, rent share price of the carrier. has focused on expanding

The barring of big Russian banks from the main good assurer of prosperity. But we live in Asia.
2G licence cancellation judge-
ment on the last day that this
could be done.
On 3 March last year, attor-
ney general Goolam E. Va-
hanvati told the court on be-
half of DoT: “I’m here to tell
about the larger policy issues.
I’m going to be very careful not
The court “condemned
(Raja) for alleged illegalities
committed by him, and for al-
leged devious methods and
manipulations by him, and al-
leged arbitrary actions by him
to favour parties and these
findings have been made in
the judgement against (Raja),
Life Insurance Corporation of In- run by liquor baron Vijay Mallya, The price will be based on the through regional operations in
dia (LIC), the largest successful and state-owned Air India Ltd to rolling price of the shares over the last six months. The fresh
bidder at the auction, its custodi- bring in fresh funds before addi- the last six months or the aver- funds will help support further
an, the Stock Holding Corp. of tional loans can be granted to age of the last two weeks, which- expansion in 2012, when three
India Ltd (SHCIL), the National the cash-strapped companies. ever is higher. Boeing 737s for medium-haul
Stock Exchange (NSE) and In October, Maran’s Kal Air- In the last cash infusion, Kal routes and eight Bombardier
BSE—the two platforms on ways Pvt. Ltd had raised his stake Airways had bought SpiceJet’s Q400s for short-haul operations
which the share sale was execut- in SpiceJet to 43.6% by buying its shares for `36 apiece when the will be added to the fleet.
ed—and the government. stock at a 50% premium to the market price was `24. The company posted a loss of

mechanism for moving funds around the globe And the dictates of security mean we must
to join issue on the decision-
making process.”
Mint is also available for R9.50 with
Hindustan Times under a combo offer
when he was not a party in the
petitions, without notice to
him and without hearing him
TURN TO PAGE 3®
As a part of the government’s market price. He first bought Mills said the price at which `356.66 crore in the first nine
divestment programme aimed at into the airline in 2010. the new shares will be bought months of the fiscal ending
raising funds to reduce the fiscal “This will be fresh equity,” will be less than the 50% premi- March. SpiceJet registered a
said SpiceJet CEO Neil Mills. “He um paid last time.
TURN TO PAGE 2® is giving us the most that he SpiceJet’s stock ended down TURN TO PAGE 2®

has since converged Russia’s interest with hedge our bets. Let’s stay non-aligned.

MY VIEW | WORLD APART

Ukraine’s Zelensky has shown grit and grace under fire

communique alongside the prime minister,
RAHUL JACOB and other leaders. The cadences of his speech
are rousing even in translation. Standing out-
side government buildings in Kyiv, Zelensky
used the word “here” repeatedly, as if in a
poem of solidarity to reassure Ukrainians that
president and attribute his communication Ukraine may be destined to be subjugated Zelensky has ably cast himself and Ukraine
successes to his former career as an enter- militarily in a matter of days, but at great cost as a David against a Goliath, but also shamed
tainer. While it’s true the former actor ran a to Russia’s reputation and economic health. the West for initially being too passive. As
comedy studio called Kvartal 95 before he The fierce resistance by Ukraine, according to Ukrainian president in a TV series a few years
won a landslide election in April 2019 with military analyst Ajai Shukla, who writes the before he was elected in 2019, the character
almost three-quarters of the votes polled, his Broadsword blog, is not going to change the he played sarcastically says to the Interna-

O
ne can cloak it in reams of geopoliti-
cal mumbo-jumbo about supposed
spheres of influence and bogus his-
torical claims of suzerainty over a neighbour
that overwhelmingly voted to leave the Soviet
Union in 1991, but the invasion of Ukraine by
Russia is a grim, dehumanizing sight. Images
of apartment buildings in Kyiv being bombed
he and the government were not going any-
where. The video clip on social media lasts
less than a minute. Has any war-time leader
ever said so much in so few words? The New
York Times (NYT) reported that Zelensky
responded to an American offer to evacuate
him from Kyiv with abrupt directness: “I need
ammunition, not a ride.”
success thus far is much more profound. war’s outcome. “The Ukrainian military is not tional Monetary Fund, “Feeling deep grati-
Far from sounding like organized for operations on tude, I want to say, ‘Stick your head in your
an entertainer, unlike many a day-to-day basis as the [expletive]!’”Just weeks ago, the EU was
pompous majoritarian His leadership Indian army is. There’s a speaking in many, often contradictory voices.
populists, Zelensky has limit to what it can do,” he Today, it is acting with decisiveness not many
sounded authentic and in the face of told me. “Putin will inflict thought it capable of. Unimaginably, Ger-
decent. Instead of hate- injuries and withdraw.” many has announced it will re-arm.
mongering, he referred to
Russia’s invasion In the meantime, how- Supposedly ‘constructive’ engagement

is a Mint columnist and a

and tens of thousands of refugees fleeing
towards its borders are everywhere. Mean-
former Financial Times foreign
correspondent.
while, satellite photos of Russian military
vehicles in a long convoy getting ever closer
to the Ukrainian capital signal a more brutal
onslaught. Yet, one man has shone with a
messianic sense of purpose. Ukrainian presi-
dent Volodymyr Zelensky has shown rare
leadership in rallying his country and galva-
nizing global opinion against Russia. Some
days ago, after the Italian leader Mario Draghi
said he was worried about Zelensky’s safety
because the Ukraine president missed a call
with him, Zelensky responded in unique
fashion. Dressed in a military brown T-shirt
and fleece, he filmed a selfie presidential
If the unusual unity of purpose among EU
leaders that has led to the unveiling of an
arsenal of financial and economic sanctions
against Russia seems unprecedented, Zelen-
sky again deserves much of the credit. On 24
February, he gave an impassioned speech in
a virtual summit with EU leaders that prod-
ded them to impose harsher economic and
banking sanctions than expected. These
came a few days later; even a big chunk of the
Russian central bank’s foreign reserves were
frozen. “His intervention will be part of his-
tory… The silence in the room was impress-
ive,” a European official told the NYT.
Journalistic shorthand makes it obligatory
to refer to Zelensky as a comedian-turned-
Russians as family and even
switched to Russian in a
has proven ever, Russia’s rouble has
plummeted, reaching 109
through trade and economic ties with des-
potic countries such as Russia and China now
recent TV speech to make a
direct appeal to Russians,
impressive in roubles to the dollar this
week, a drop of almost a
seems a dangerous fairytale. This awful saga
calls for a reassessment of China too, which
while accepting that given ways the world fifth since the invasion has benefitted from the global trading and
the Kremlin’s control over began, while investors in diplomatic system while seeking to under-
the Russian media, there has rarely seen rouble-denominated bonds mine it. Putin’s attack has been a wake-up
was little chance of his mes- have almost no way to sell call, but so too has been the charisma of a
sage reaching them: “We them, as securities deposi- Ukrainian president turned global hero over-
are different, but that is not a reason to be ene- tories such as Clearstream and Euroclear night. In three years as president, Zelensky
mies.” By contrast, Russian President Vlad- announced on Tuesday that they would stop hitherto had an erratic record in fulfilling
imir Putin’s speeches appear to have been accepting payments in that currency. The promises—for instance, to reduce the role of
telecast from an alternate universe. He tightening of the noose on Russia’s financial oligarchs in Ukraine’s economy. But once a
bizarrely justified the invasion as an effort to ecosystem, which started with barring its big- catastrophe confronted his country, he
de-Nazify Ukraine and free it from a govern- gest banks from access to the Swift network, seized the challenge as few leaders anywhere
ment led by drug addicts. has gone much further than many expected. have in recent memory.
LIVEMINT.COM VIEWS THURSDAY, 3 MARCH 2022
NEW DELHI 15

THEIR VIEW M I N T C U R AT O R

The dividends of democracy are War risk has spurred market

bets on a less aggressive Fed
worth the requisite investment US bond market moves show expectations of a policy recalibration

It has a subtle but real link with economic development and calls for global attention amid today’s ascent of authoritarianism

ALAMY

LIZ MCCORMICK & YE XIE

are, respectively, senior reporter and global
markets reporter, Bloomberg

KAUSHIK BASU
is a former chief economic adviser to the
Government of India and currently professor of
economics at Cornell University

T
he US bond market is dialling back
expectations for how quickly and
steeply the Federal Reserve will raise
interest rates as Russia’s war in Ukraine Many traders expect a war-driven revival

D
uring my years as a policymaker in
India and at the World Bank, one of
the few leaders I met whom I truly
came to respect was Madeleine
Albright. The former US secretary of
state was a master strategist, but
behind the strategizing lay empathy and a moral
compass. That is why we should take seriously her
recent essay on the need for urgent global action to
fight authoritarianism, which the all-out invasion
of democratic Ukraine by Russia’s autocratic
leader, Vladimir Putin, only serves to underscore.
History is replete with grotesque forms of
human oppression, including slavery, racism, and
oligarchies crushing people’s aspirations. Today,
the continued rise of authoritarianism in countries
such as Brazil, Turkey, and of course Russia, high-
lights the need to shore up democracy. What is
new is that this effort now must be global.
Even as the shadow of authoritarian misrule
spreads, there is a growing aspiration for
democracy among ordinary people seeking
greater freedom and dignity. A Pew Research
survey of 17 advanced economies in 2021 shows
disaffection with the lack of individual freedom in
authoritarian states at an all-time high. According
to the survey, a median of 74% of people in these
countries had no confidence in Putin doing the
“right thing in world affairs.”
There is also hope in Albright’s interesting
observation that leaders with totalitarian inclina-
tions tend to rise and fall in waves. Force out one,
and others may tumble, too, as happened when the
end of authoritarian rule in the Philippines in 1986
was followed by similar developments in Chile,
South Africa, Zaire and Indonesia over the next
decade or so. This should encourage responsible
governments today to initiate the process of
reviving global democracy.
Sadly, the record of the US is far from clean in
that regard. A recent study by the Roosevelt Insti-
tute’s Kyle Strickland and Felicia Wong points to
how America’s neoliberal economic policies
fuelled discrimination and inequity in many
countries. Moreover, in Chile, Cuba, Central
America and elsewhere, America has intervened,
often brutally, not to support democracy but to
protect US corporate interests. Providing leader-
ship to isolate authoritarian regimes and nurture
democracy will thus require the US to break with
significant aspects of its past and take on this
responsibility as its moral obligation to chart a new
course for the world.
But to rely wholly or substantially on the US
would be folly. To be sure, some US presidents—
notably, Franklin Roosevelt, Harry Truman,
Jimmy Carter and Barack Obama—have possessed
a strong sense of global responsibility. Fortunately,
many prominent Americans, including current
political leaders, take a similar stance. Yet, as
Donald Trump demonstrated, a US leader can be
elected by promising to “make America great
again”, and, once in office, define “America” as his
friends, family and cronies.
While many justify the need for democracy
as a means to other desirable ends, I believe that
democracy is necessary in itself. If it were the case
that democracy slowed economic growth, we
should be prepared to grow a little less in order to
let equality and freedom flourish.
This is because the commitment to treat all
human beings as equals, as democracy requires,
is an ethical axiom. As Abraham Lincoln put it
in a handwritten note in 1858, “As I would not
be a slave, so I would not be a master. This
expresses my idea of democracy.”
That said, the evidence suggests that democracy
is a key ingredient of economic advancement.
By creating the space for dissent, criticism and
change, democracy nurtures creativity and inno-
vation, and, through that, economic flourishing.
Economic progress in countries that succumb to
religious fundamentalism or authoritarianism
almost invariably stalls. China seems to be an
exception, but it is worth noting that democratic
Taiwan’s gross domestic product (GDP) per capita
is nearly three times that of China.
One of the best examples of what democracy can
do is post-independence India, one of the world’s
most audacious experiments in creating and
nurturing an open society. No doubt, the country
has made some economic-policy mistakes over the
last 75 years, and its annual growth rate in the early
decades after independence remained low, at
around 3%. But the democratic investment meant
that, despite being a poor country, India did well
in higher education, research, the arts and other
creative fields.
The pickup in India’s economic growth from
the early 1990s onward had many causes, but it
also reflected the democratic dividend. Because of
the country’s political openness and freedom of
speech and criticism, the services sector, which
relies on creative human capital, began to bloom,
fostering the growth of firms like Infosys, Wipro,
and Tata Consultancy Services. By 2005, India
was among the world’s four or five fastest-growing
economies. Its sophisticated polity had made India
a global success story, poised for a remarkable run.
This success has come under a cloud in recent
years, with an observed increase in restrictions
on free speech and the media. Not surprisingly,
India’s GDP growth decelerated each year from
2017 to 2020. The close connections between
democracy, creativity and economic progress are
subtle and long-term, but they are real. And they
demonstrate the need to encourage democratiza-
tion worldwide. ©2022/PROJECT SYNDICATE
threatens to exert a drag on global economic
growth. Money-market traders have priced
out any risk that the US central bank will
start its tightening campaign this month
with a half-point increase, which was once
seen as a near certainty. Even a quarter-
point hike isn’t completely assured. At the
same time, they have also marked down
where the Fed’s benchmark rate will peak,
to around 1.7%, a drop of over 20 basis
points from earlier expectations and well
short of the central bank’s 2.5% long-term
estimate for the rate.
The repricing shows how much the geo-
political uncertainty has shifted the balance
of risks facing the world’s monetary-policy
makers, who now need to weigh prospects
of slower growth even as rising energy and
commodity prices threaten to fuel what’s
already the worst inflation in four decades.
The move in US markets is being mirrored
in the UK and Europe, where traders have
also dialled back rate-hike bets. “This is a
significant increase in the stagflationary
winds blowing through the global econ-
omy,” Mohamed El-Erian, chief economic
adviser at Allianz SE, said on Bloomberg TV.
“The marketplace has been coming down to
a more reasonable amount of tightening.
But what the marketplace hasn’t recognized
is the reason why the Fed will tighten less.
It’s not because inflation has a better out-
look. It has a worse outlook. It’s because
growth has a significantly worse outlook for
the global economy.”
Treasury yields have tumbled in the wake
of the Ukraine war, in part due to a rush into
the most liquid investment haven. But rates
on inflation-adjusted Treasury yields,
dubbed real yields, have also plunged as
growth prospects dimmed and bond-mar-
ket gauges of short-term inflation expecta-
tions hit all-time highs.
The rapid reversal has some investors
questioning whether the pullback in yields
is overdone and whether the uncertainty
cast by the war will actually alter the path of
central banks seeking to tamp down infla-
tion. Some of the price moves may also have
been exaggerated by a rush to cover bets
against Treasuries that were upended when
prices rallied after the Russian invasion.
James Athey, investment director at
Aberdeen Asset Management in London, is
wagering against those thinking the war
could upend the Fed’s tightening plans. He
expects that any delayed rate hikes this year
will just be shifted into 2023 and said the
of growth concerns at the US Fed REUTERS
drop in yields is more about some traders
getting caught off-side with short positions.
“This is a position squeeze,” Athey said.
“Central banks were being forced to tighten
by high inflation and high inflation expecta-
tions, not by high, rising growth or rising
real wages,” he said. “So the fact that this
Russia situation is probably bad for growth
and bad for risk sentiment doesn’t provide
any excuse whatsoever for central banks to
dramatically change course.”
The market is now pricing in less than
five quarter-point rate hikes from the Fed
this year, compared with more than six such
increases two weeks ago. Traders are thus
betting the Fed may raise the borrowing
costs by less than 50 basis points next year
before starting to cut in 2024.
The increased inflation pressures and
growth risks have sent US real rates plung-
ing. The rate now on five-year Treasury
inflation-protected securities (known as
TIPS) is around negative 1.7% versus being
less than negative 1% just a few weeks ago.
The two-year breakeven inflation rate,
which measures the gap between TIPS and
plain vanilla Treasuries, surged last week to
the highest since Bloomberg began compil-
ing the data in 2004. It’s hovering just
below that now at about 4.23%, up from
some 3.2% at the end of December. The five-
year breakeven is at 3.23%, up from 2.89% at
the end of January.
Two-year Treasury yields, which had
more than doubled between the end of last
year and mid-February to 1.64%, have since
retreated by over 30 basis points.
Part of the revamped calculus for traders
involves the possibility that if the Fed starts
out less aggressively this year it may be
forced to catch up in 2023—all the while
avoiding driving the policy rate so high that
growth grinds to a halt.
“The Fed may go less aggressive to start,
then have to make it up further out, with the
market also saying overall the Fed will do
less,” said Priya Misra, global head of rates
strategy at TD Securities. “This may be
related to concerns over the global credit
exposure to Russia and the risk it tightens
financial conditions a lot—as well as growth
concerns. And even before Russia, the bond
market was worried about the strength of
the economy next year and beyond.”
With the assistance of Edward Bolingbroke
©BLOOMBERG

GUEST VIEW

Our green hydrogen policy could be made more effective

mission of electricity between the points of
RAMANUJ KUMAR & PRIYAL MODI generation and consumption. The GHP
envisages green hydrogen production using
power supplied by a co-located RE plant or
sourced from a remotely-located one. In case
of the latter, the landed cost of power would
The GHP allows the banking of RE used to
produce green hydrogen and ammonia for
30 days, and seeks to cap the charges on this
to the difference between the discom’s last-
year average tariff for RE procurement and
the average market clearing price in the day-
RE-rich states implement the GHP’s banking
provisions and levy uniform charges, it may
not help green hydrogen producers much.
While permitting a waiver of ISTS charges
for hydrogen projects commissioned before
30 June 2025, the GHP omits to mention any
to waive the aforementioned surcharges for
open-access RE projects and cap RE-banking
charges at the level specified in the GHP.
While the GHP measures aim to enhance
the supply of green hydrogen at competitive
rates, moves to stimulate demand are com-

T
he ministry of power (MoP) announced
a much-awaited green hydrogen policy
(GHP) on 17 February. Industry partici-
pants have largely welcomed it, for it fits in
well with the climate-action thrust of India’s
budget for 2022-23. The policy has set a tar-
get of 5 million tonnes per annum (MTPA) of
green hydrogen production by 2030, more
determine the cost of output. As per a recent
Mercom India report, the landed cost of solar
power in most states is in the range of ₹3.70
and ₹7.14 per kWh. IOC estimates that with
landed cost of ₹4-7 per unit, green hydrogen
can be made at a cost of ₹500 per kg, which is
nearly 3.5 times the cost of grey hydrogen. So
the landed cost of RE from a distant source
ahead market during the month that RE is waiver of ISTS losses for green hydrogen and pletely missing. It was widely anticipated that
banked. Under the Elec- ammonia projects. The the policy would mandate hydrogen-pur-
tricity Act, 2003, the power GHP lets discoms procure chase obligations for the petroleum refining
to allow RE banking is held Its measures for and supply RE to makers of and fertilizer sectors to begin with. While
by State Electricity Regula- green hydrogen/ammonia large refiners like Reliance and IOC have
tory Commissions (SERCs). cost reduction at the cost of procurement plans to set up green-hydrogen production
Many RE-rich states are with a small margin deter- facilities, other manufacturers and RE devel-
either moving away from
are welcome but mined by the SERCs. This opers would be hesitant to commit large-

are, respectively, partner and

than 80% of the current hydrogen demand in
the country. The question is whether the
associate, Cyril Amarchand
Mangaldas
GHP contains sufficient measures to achieve
this ambitious goal.
As per the International Energy Agency
(IEA), oil-refining is the largest consumer of
hydrogen today. Our largest refiner, Indian
Oil Corp (IOC) estimates that GHP measures
will reduce the cost of green hydrogen pro-
duction by 40-50%. Producing 1kg of it takes
about 50kWh of electricity, assuming elec-
trolyser efficiency of 70%, with renewable
energy (RE) the biggest cost component.
While India boasts one of the world’s lowest
average cost of RE generation, it levies a
plethora of charges on wheeling and trans-
will need to at least be halved (with a corre-
sponding reduction in electrolyser capex cost
and increase in efficiency), to make green
hydrogen competitive vis-a-vis grey.
Thus, a mere waiver of inter-state trans-
mission system (ISTS) charges announced in
the GHP may not suffice to make green
hydrogen competitive. For open-access RE
projects, a cross-subsidy surcharge and addi-
tional surcharge constitute a big component
of the landed RE cost. The Mercom India
report says that cross-subsidy levies in states
range from ₹1.71 to ₹2.23 per kWh. A waiver
or substantial reduction in these two charges
would make the use of RE more attractive to
producers of green hydrogen.
allowing RE banking or
introducing regulations to
much else could
restrict this facility. Guj-
arat, for example, allows
be done for
settlement for banked solar India to achieve
power only between 7am
and 6pm and levies ₹1.5 per its larger goal
unit as its banking charges
for ‘high-tension’ consum-
ers. Rajasthan permits banking of up to 25%
of RE generation and settlement on an annual
basis, but levies a 10% charge, among the
highest in India. Tamil Nadu and Andhra Pra-
desh do not allow RE banking. Moreover,
most states do not permit banked energy to
be drawn during the peak hours. So, unless
margin may not be enough
incentive for discoms to
procure and supply RE to
green hydrogen makers on
a long-term basis.
Many of the measures
announced in the GHP
would require the active
cooperation of state gov-
ernments (including allotment of land in RE
parks and proposed manufacturing zones)
and the relevant SERCs. To get the coopera-
tion of RE-rich states, the Centre may con-
sider providing concessional finance to the
discoms in such states to clear their dues to
power generators, and in return require them
scale investments in the absence of demand
generators. While the success record of
renewable purchase obligations in India’s
energy sector has been less than satisfactory,
this mechanism does provide a boost to the
nascent RE sector and lower RE project costs
through economies of scale. Hydrogen-pur-
chase obligations or other demand boosters
would support the creation of a green hydro-
gen ecosystem. For example, the Centre may
consider incentivizing petroleum refiners
and fertilizer makers to make and use green
hydrogen by offering subsidies linked to their
level of its utilization as feedstock. This would
further India’s goal of achieving its net-zero
emissions target by 2070.
16 THURSDAY, 3 MARCH 2022
NEW DELHI BUSINESS OF LIFE CULTURE LIVEMINT.COM

‘Kashmiri doesn’t come Neerja Mattoo talks about

her new book, women
poets, why Kashmiris are

naturally to most people’

By Nipa Charagi
not writing short stories, and
the state of the language

nipa.c@livemint.com

W
hen Neerja Mattoo
took her first col-
lection of Kashmiri
short stories trans-
lated in English—
The Stranger Beside Me: Short Stories From
Kashmir (1994)—to the publisher in Delhi,
he said, “Okay, we will think about it, but
can you suggest someone who can write a
book on Kashmiri cookery?” Mattoo
decided to write the book herself. “People
tell me the recipes work well,” she chuc-
kles.
Mattoo has since published six books,
including The Mystic And The Lyric (2019),
a translation of four women poets of Kash-
mir between the 14th and 18th centuries:
Lal Ded, Habba Khatoon, Rupa Bhawani
and Arnimal. Her new book, The Greatest
Kashmiri Stories Ever Told (Aleph Book
Company), features early practitioners of
the craft like Diananth Nadim—his Reply-
paid Card (1948) is considered to be the
first Kashmiri short story—Somnath Zut-
shi, Sufi Ghulam Mohammad and con-
temporary writers like Dheeba Nazir.
Speaking on the phone from Srinagar,
Mattoo, 83, says: “I thought by translating
stories into English, Kashmiris themselves
would have more respect for their litera-
ture. Many of them have read these writ-
ers for the first time in translation only.”
She recalls a Delhi University professor
telling her that he did not know that Kash-
miri was a language. “I was both shocked
and surprised. We Kashmiris are proud of
the fact that our language is probably one
of the oldest in India. I realised that people
need to know there is this language and it
has a very old literature, recorded from
14th century onwards.”
In her new book, you see the stories
evolving, from serving up realistic
sketches of Kashmiri life to reflecting
broader themes and changing times. For
instance, Poshikuj in Deepak Kaul’s Rad-
hakrishna’s Cat, who is always stuck to her
post at the window, could be the nosy
woman in any neighbourhood. Hriday
Kaul Bharati departs from the traditional
mould with his Kafkaesque The Stranger
Beside Me, while Ghulam Nabi Shakir
writes subtly about a woman’s desire in
Unquenched Thirst.
Mattoo taught English literature for
four decades at the Government College
for Women in Srinagar. When she joined
the college at the age of 20, it was not the
norm for Kashmiri women to take up a job.
“My father was worried that now nobody
would marry me. But I stuck to my guns
and I am glad I did that,” she says. Edited
The vocabulary used to write about Kashmir has seen a divide since the 1990s
excerpts from the interview:
What was the criteria for selecting
these stories, given the title says
“greatest”?
The best (Kashmiri) short stories were
written sometime ago. These are authors
who have really done something remarka-
ble. Short-story writing requires a sense of
technique, a sense of structure, a kind of
discipline. Today, you find very few peo-
ple who are writing good stories. They
find it easier to write in verse, where they
don’t have to submit to a certain structure.
There are only two women writers
out of 25 in the book.
That also required a lot of research. I felt
bad that poetry has these wonderful
women’s voices (like Lal Ded and Habba
Khatoon). Prose in Kashmir came late and
the short story came in the middle of the
last century. That time, women wrote, but
not short stories, except for Taj Begum
Renzu, who was exceptional in that she
wrote in the late 1940s and early 1950s.
As far as short stories are concerned, I
ISTOCKPHOTO
could only find one contemporary writer, these terms. language at home. They are only spoken
Dheeba Nazir. These days, there are good The language of the people who have to in Urdu or English, because they (par-
women poets. left the Valley is a bit Sanskritised. There ents) think these are the languages for
In many of the stories, the writings is also the script. People outside the Valley progress. You will not find a child of four-
reflect a shared Kashmiri culture and use the Devanagari script, with modifica- five years old in an urban setting who will
identity. How did 1990 change tions, while those in the Valley use Persian speak naturally in Kashmiri. Parents also
things? Nastaliq, with various changes, which has don’t speak. That’s a pity and a huge loss.
You will see it more in the people who now become the official script. With no It is something that should be rectified.
have left the interaction You took up translation seriously in
Valley. Most being there, 1990...
of their work ‘Without interaction, the ability of I feel it is In the early 1990s, when there was so
is in one way one community to understand what g o i n g t o much destruction in Kashmir, I thought
or the other affect the we would lose everything, because people
related to the other community is saying in ability of one were running away. The whole cultural
the loss of their language will be affected’ community fabric had broken up and I thought I had
their home- to under- to do something. And I decided to trans-
land. There stand what late some short stories. The title of the first
was no divide before 1990—the vocabu- the other community is saying in their collection was borrowed from Hriday
lary of the authors was the same. But if you language. Kaul Bharati’s story in the book.
read things now by Kashmiri Pandits and Given that Kashmiri was not even You have also translated the four
Kashmiri Muslims, you will find the taught in schools till some years back, women poets of Kashmir.
vocabulary has undergone a change. what is the state of the language I realised the two main streams of Kash-
The vocabulary used in the Valley has today? miri poetry, mysticism and lyricism, were
become more Persianised, Arabic words The unfortunate thing is that students both introduced by women. Lal Ded was
are also predominant—they are used to find this the most difficult part of their the first practitioner of mystic poetry and
thinking in Urdu, which has many of curriculum because they don’t speak the Habba Khatoon, of romantic lyric poetry.
The Greatest Kashmiri
Stories Ever Told:
Selected And Translated
By Neerja Mattoo:
Aleph Book Company,
164 pages, ₹699.
The two other women followed in their
trail: Rupa Bhawani in the mystic way, and
Arnimal in the lyrical stream. I found that
these women had a distinct voice. They
were quite exceptional because the age in
which they lived, they didn’t allow society
to throttle them. They spoke out loud and
clear. They, in a way, were one of the first
proponents of the idea that a woman has
her own sensibilities and she needs to talk
about it.
That’s the reverse of what happened
in the 1990s?
Exactly. In my own lifetime I have seen
things going into reverse gear. When we
were students, the whole world was there
for us. The sky was the limit as far as our
aspirations were concerned. Kashmiri
students are deprived of all that today. It’s
a remarkable thing that they study and
achieve things despite all the difficulties.
We were privileged in that sense.
Is there an audience for Kashmiri
writing?
A lot is being written in Kashmiri but
see, the language doesn’t come naturally
to most people. It’s an academic kind of
exercise. People prefer to write in English
because it has a wider audience. They feel,
who will read in Kashmiri?
What are you planning next?
I may do something about present-day
women poets like Naseem Shafaie and
Nighat Sahiba, who write in Kashmiri.
They have a feminist voice, use the mod-
ern idiom and are understandable. It is not
a distinctly Hindu or Muslim voice.
For more stories on culture and books,
read mintlounge.in/howtolounge

Five new breweries in Bengaluru

which are lifting the city’s spirits
India’s beer capital is pura Ghee Roast Chicken and Coorg
Style Pork.
always buzzing. Here Where: 35, 9th Mile, Holiday Village
are five new breweries Road, Vajarahalli Village, Jyotipuram,
Kanakapura Road, Bengaluru.
that opened during
WHAT THE ALE?!
the pandemic Brewmaster Umang Nair serves up spe-
cialty craft beers at this new brewery in
By Shrabonti Bagchi Electronic City. Sample the Toast Red
shrabonti.b@livemint.com Ale, a malt-forward ale with subtle fla-
vours of caramel and toffee; the Hibis-

T
he pandemic has not dimmed
Bengaluru’s passion for beer.
Back in 2019, in what feels like a
different era, we wrote that “in Benga-
luru, beer is the new coffee”. Back then,
we reported the city had 55 to 60
microbreweries—today, that number
has crossed 100 with new outposts of
well-known brands. The craft brewery
culture has also spread beyond the cen-
tral business district to the slightly
more far-flung areas of the metropolis.
Here’s a roundup of some of the newer
breweries lifting the city’s spirits:
THE MERAK BREWHOUSE
AT JW MARRIOTT
The Merak threw open its doors
recently, following in the footsteps of
the Seven Rivers Brewing Co at the Taj
MG Road, which created the fresh for-
mat of a microbrewery situated within
the premises of a five-star hotel serving
up brews and food at prices that are
competitive with other microbreweries
in the city (that is to say, at non-five star
prices). The Merak’s prized brews are
the American Style West Coast IPA, a
refreshing orange-coloured ale with a
prominent and intense hops aroma
with a citrusy, piney and fruity charac-
ter derived from American hops;
Saison, a clear, amber-colored spicy
malt with flavours of sweet spices, dark
fruit and malty sweetness; and Kolsch,
Geist Brewing Taproom
a smooth, light gold, low pilsner malt
with an aroma of delicate fruit with
slight tones of bitterness and sweet-
ness, all crafted by brewmaster Karthik
Singh.
Where: JW Marriot Hotel, Vittal
Mallya Rd, Bengaluru.
HOPSHAUS TAPROOM &
KITCHEN, INDIRANAGAR
After a buzzy debut in Whitefield, Hop-
shaus recently opened a second out-
post closer to the city centre in Indiran-
agar. Alongside the tavern-style food
menu and a draught beer collection on
tap is a list of ‘Haus cocktails’ created by
beverage manager Robert Hospet, who
uses local spices, botanical ingredients
and homemade bitters to create hand-
crafted cocktails with seasonal flavours.
Try the Purple Compass with blue tea
and citrus fruits and with a base of
white rum and Martini Bianco. The
Eastside is a refreshing gin cocktail,
The Whiskey-Brisky is made from
fresh fruits and enhanced with a dash of
Kaffir lime, while the Asian Gimlet is
made from Vodka and a secret syrup.
Where: 12th Main Road, Indiranagar,
Bengaluru.
BLR BREWING CO,
KANAKPURA ROAD
While the brewing action earlier was in
the city centre and areas like Indirana-
gar and Koramangala, it is fast spread-
ing to every corner of the city. BLR
Brewing Co, with its two breweries in
Electronic City and Kanakpura Road, is
one brand that’s taking the microbrew-
ery culture to the outskirts. Apart from
the regular craft brews like Belgian
Wit, Hefeweizen, Smoked Wheat, and
German Lager, they have interesting
craft cocktails and short eats inspired
by local cuisines like Podi Idli, Kunda-
kiss, a Belgian-style Saison brewed with
hibiscus flowers imparting a berry fla-
vour to the ale; an American-style Pas-
sionfruit Blonde; and the Raspberry
Cider with a balanced sweetness and
tartness. Chef Javed, who heads the
kitchen here, experiments with new
dishes like the Baked Fish Puliogare, a
twist on the favourite local spicy rice
dish, Puliogare, and Podi Pork Belly,
which uses chutney podi to spice up a
regular pork belly.
Where: Neeladri Nagar, Near Brand
Factory, Electronic City, Bengaluru
GEIST BREWING TAPROOM
Encouraged by the success of its cozy,
open-air and pet-friendly beer garden
on the premises of its factory in Nimbe-
kaipura on the outskirts of the city,
Geist, which started life by supplying
fresh craft brews to restaurants and
pubs and now sells growlers as well,
opened up a second outpost in the
heart of the city at the Orion Mall in
Malleshwaram. The new pub serves the
ever-popular Geist brews, from the
Rauch-A-Fella, a smoked wheat beer;
the Kamacitra, a medium-bodied New
England IPA with citrusy notes; and the
Geist Marzen, its take on the German
Lager with a rich malt character and
balanced hoppiness.
Where: Orion Mall, Malleshwaram,
Bengaluru
 NEW DELHI, MUMBAI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 16 NO. 53

Thursday, March 3, 2022

‘We have evacuated about Stocks decline, oil prices

livemint.com 12K Indians from Ukraine’ uP1 surge ahead uP1