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Monday, March 13, 2023

livemint.com

mint primer QUICK EDIT

What happens to SVB is no

Indian startups
after SVB’s fall?
BY PRASID BANERJEE
The shutdown and takeover of Silicon Valley Bank (SVB) by US
regulators has raised questions on how it impacts India’s startup
industry. It was an important partner for the global startup economy.
Mint explains:
What happened to
1 Silicon Valley Bank?
On 8 March, SVB surprised
investors with an announcement
that it was raising $2.5 billion
through a share sale, after selling
$21 billion worth of securities. On
10 March, the US Federal Deposit
Insurance Corporation (FDIC)
announced that the bank was
closed by the California
Department of Financial
Protection and Innovation. “To
protect insured depositors, the
FDIC created the Deposit
Insurance National Bank of Santa
Clara (DINB). At the time of
closure, the FDIC as receiver
immediately transferred to the
DINB all insured deposits of
Silicon Valley Bank,” it said.
What led to the bank’s
2 downfall?
While the bank’s downfall
officially started last week, the
failure actually relates to the
overall financial crisis plaguing the
world. Many startups were forced
to withdraw funds parked at the
bank after funding dried up. The
market for initial public offerings
(IPOs) also slowed due to rising
interest rates, which in turn can be
traced back to the US Fed raising
interest rates. The bank had to sell
the $21 billion in securities,
booking a loss of $1.8 billion. Its
stock sale also collapsed however,
and more clients withdrew funds
leading the bank to seek
alternative funding by a sale of the
company.
Lehman
The collapse of Silicon Valley
Bank (SVB) in the US is not
another “Lehman moment”.
While the “biggest US bank fail-
ure since 2008” may sound like
an ominous reminder of the
crashes and contagion that
shook Wall Street ahead of the
Great Recession, this case dif-
fers significantly. Since regula-
tion has tightened, the general
risk of knock-on effects is lower.
Also, SVB was more of a lender
than an investor. Covid-time
easy money had led to a bloat in
deposits held by SVB’s startup
clients, a huge chunk of which
was invested in bonds (think
lazy banking) that crumpled in
value as the US Fed sharply
reversed its monetary policy to
quell inflation. As a tech-sector
squeeze begot withdrawals that
forced bond losses and revealed
a gap in need of capital infusion,
a panic run on SVB ensued. Less
lazy US banks are also exposed
to bond portfolio damage, but
it’s less of a worry for them; their
assets and liabilities would be
more diversified and hence less
risky too. SVB bailout calls have
arisen, but only if it poses a sys-
temic threat would a federal
rescue be justified. At this stage,
SVB’s failure has not assumed
such proportions, even if some
startups suffer, and it’s best for
the rest of us that it doesn’t.
MINT METRIC
by Bibek Debroy

1.5 crore is a tidy sum,

3 How are Indian startups
viewing SVB’s failure?
SVB is the largest retail banking failure
But his son and daughter-in-law were scum.
since the 2008 financial crisis. As the
Nathu Singh left his estate
initial hysteria ebbed, investors and To the Governor and UP state.
startups say that although the bank’s
downfall will affect Indian startups, the
The presumed heirs are struck dumb.
industry is far from a panic mode right
now. SVB was an important partner for the
startup economy, not just in the US but
worldwide as well.
QUOTE OF THE DAY
Let me be clear that during the
4 How will it impact
Indian startups?
For startups, especially those
5 Which Indian startups
did business with SVB?
According to data from research
financial crisis, there were
investors and owners of systemic
raising funds from US investors, firm Tracxn, SVB has invested in
SVB was a medium for venture about 21 Indian startups, including large banks that were bailed
debt and for depositing their own the likes of Shaadi, Naaptol and out...and the reforms that have
funds. Investors and analysts said One97 Communications (which been put in place means we are
that for companies that deposited runs PayTM). In a LinkedIn post,
funds, the downfall could lead to entrepreneur Ganesh Krishnan not going to do that again.
cash flow problems, which in turn explained that SVB sold its shares
may lead to trouble in meeting in these firms during further
payrolls and other day-to-day funding rounds or when the firms
expenses. However, the larger monetized, leaving them free of
concern is that many VCs the so-called ‘ripple effect’. JANET YELLEN
deposited millions in SVB, which Investors said the real risk is for US TREASURY
could lead them to further slow firms which had deposits in the SECRETARY
down funding moves and delay bank, which include software
term sheets. startups with operations in the US.

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 PLAIN FACTS

In charts: How Indians

move within the country
BY TANAY SUKUMAR

M
arriage is a far larger driver of migration in India than jobs—mostly involving women who move between villages
within their own state due to exogamous traditions. Nearly half of Indian women live in a place different from their
own, while among men, the share is just 11.3%, half of them for jobs, shows a 2020-21 government household survey
whose data was released last week. The route from Uttar Pradesh to Maharashtra accounts for 5.7% of all inter-state job-re-
lated migrations, the largest migrant movement of all state pairings, shows a Mint analysis of the unit-level data. However,
only 44% of earning migrants see increased income after moving, the data showed. Kerala is among the most unattractive
states if you are looking for an increase in income after migration.

Definition
The National Sample Survey defined migrants as
those who had ever spent at least six straight months
in a village/town/country different from their current
place of residence, i.e. where they were surveyed. The
survey took place in 2020-21.
Tracking movement
Delhi has the highest share of persons (21.3%) who have come from
outside its territory, followed by Himachal Pradesh (8.5%).
Intra-state migration is much more common across India: Himachal
Pradesh sees the highest extent, with 37.2% of its population
staying away from home within the same state. The hill state also
sees high migration to rural areas: 44% of its rural population
comes from elsewhere.
States with highest share of external migrants in population (%)
Delhi 21.3
Himachal Pradesh 8.5

Migrant profile Punjab 8.1

One in three urban Indians is a 'migrant'—but Uttarakhand 7.9
mostly intra-state. Just 7% of urban Indians have
come from another state. Across India, the share Kerala 7.9
of locals living in their own usual place is 71%.
Among migrants, 55% have moved between Jharkhand 6.5
villages—mostly women moving after marriage.
Maharashtra 5.5
Demographic profile (locals/'migrants')
of India's population
Haryana 5.2
Locals Migrated within state
Migrated from another state Telangana 4.1
Migrated from another country
3.5 0.3 Gujarat 3.9
2.1 0.2 7 0.4

24.6 States with highest share of intra-state migrants in population (%)

25.4
(in %) 27.2 (in %) (in %)
Himachal Pradesh 37.2
73.2 65.4 70.9
Telangana 33
Rural India Urban India Overall
Tamil Nadu 31.9
Share of 'migrants' in India, by source and
destination (rural/urban) Andhra Pradesh 31.8
(in %) ...to rural ...to urban Kerala 30.6
Rural... 55.4 20.1
Maharashtra 30.1
Urban... 9.5 14.1
Abroad... 0.5 0.4 West Bengal 29.6

Share of 'migrants' (%) in each group's population Odisha 29.6

Urban women 47.8 Punjab 27.7
Rural women 47.6
Urban men 22.3 Chhattisgarh 27.7
Rural men 6.8 Note: The lists exclude states and Union territories with small sample sizes.

Why do we move? Migration of

Share of 'migrants' by reason for moving (%) parent/earning
Jobs are the biggest reason for migration for member of Other
men, with 39% of male migrants in rural India Studies Marriage the family reasons
and 56% in urban India having moved to their
current place for employment-related reasons. Rural men
Among women, the primary reason is marriage,
with almost nine in 10 having come to their Urban men
current place for this reason. Fewer than 2%
migrated women in India have come from Rural women
another place for a job-related reason—a
reflection of India's low female labour force Urban women
participation.
0 20 40 60 80 100

Moving for jobs

Himachal Pradesh and Telangana have the highest share of job-related migrants in their total urban male population.
Northeastern states have the fewest such migrants. In Delhi and Maharashtra, the share stands at 17% and 18%. However, it
doesn't always work out well: just 44% of all migrants who were earning in their original place reported increased income
after making the move.
Share of job-related 'migrants' in (in %) Share (%) of earning 'migrants' in each state, whose
population (urban areas, male) income didn't increase* after moving
5 10 15
20 40 60 80
Himachal Himachal
Delhi Pradesh All-India Pradesh
17 35 12.5 64
Bihar
64

Nagaland
18 Manipur
92

Telangana All-India
23 43.8
States and Union territories with low sample
size not shown. Job-related migrants include
those who moved in search of a new or better
job, for business, to take up a new or better job, Kerala
due to a transfer, or to stay closer to workplace. 75 Includes intra-state migrants
Includes intra-state migrants *Stayed the same or reduced

Highest outbound 5.7 4.1

3.4
job-related 2.7 2.7 2.5 2.3 1.9 1.6
migration
(share in all-India, %)
UP to UP to Bihar to Maharashtra Delhi UP to Bihar to UP to Maharashtra
Maharashtra Delhi Delhi to UP to UP Gujarat West Bengal Punjab to WB
Source: NSS Multiple Indicator Survey (2020-21), Mint analysis of unit-level data
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 NeW DeLhI, MUMBAI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE* VOL. 17 NO. 60 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 18 PAGES

Monday, March 13, 2023

Why India’s knitwear capital is Saudi Aramco makes historic

livemint.com in doldrums uP10 $161 bn profit in 2022 uP8

SENSEX 59,135.13 0.00 NIFTY 17,412.9 0.00 DOLLAR ₹82.05 ₹0.00 EURO ₹86.82 ₹0.00 OIL $82.64 $0.14 GOLD ₹55,441 ₹0.00

Banks offer lifeline Adani to halt some Blackstone to DON’T MISS

sell stake in
investments, focus Sona Comstar
to SVB-hit startups on current projects for $640 mn
Ranjani Raghavan
Lenders have set up teams to assist startups in moving funds Shayan Ghosh & ranjani.raghavan@livemint.com
Anirudh Laskar Group prepays MUMBAI
Lenders lower rates as home
Ranjani Raghavan shayan.g@livemint.com
$2.65 bn loans loan growth sees a decline

B
lackstone, the world’s
ranjani.raghavan@livemint.com DAmAGe CoNTroL largest alternative asset Banks and home financiers are offering
MUMBAI

T
he Adani group has told
domestic lenders that it
A dani Group on
Sunday said it has
manager, is selling its
remaining stake in Sona BLW
special rates before the financial year-end to
lure customers amid sluggish demand, as

A
t least three Indian
banks—Axis Bank,
Kotak Mahindra Bank,
and ICICI Bank—along
with the Indian unit of
HSBC, assembled crack teams to
work through the weekend to assist
startups affected by the collapse of
Silicon Valley Bank open new dollar
accounts in Gujarat’s Gift City,
which caters to non-residents and
offshore entities.
The banks set up specialized
teams to assist startups in moving
funds to their branches in Gift City
when a freeze on transactions is
lifted for Silicon Valley Bank.
After a run on the bank on Thurs-
day and Friday, US regulatory
authorities led by the California
Department of Financial Protection
and Innovation shut down SVB and
appointed the Federal Deposit
Many Indian startups with US subsidiaries banked exclusively with SVB.REUTERS
No bailout, says Yellen
Reuters
feedback@livemint.com
Yellen told the CBS News
“Face the Nation” show that she
had been working with regula-
will pause some of its
proposed investments, espe-
cially those without funding
commitments, and focus on
the ones where work has
already started, said two peo-
ple aware of the development.
Some of the projects the
group has decided to delay are
under Adani New Industries
Ltd, a company set up to
expand the group’s renewable
energy initiatives. Lenders
said that the shift in strategy
came after France’s TotalE-
nergies put on hold its plan to
buy a 25% stake in Adani New
Industries.
“Adani Group’s solar mod-
ule manufacturing business
was supposed to get a chunk of
the ₹20,000 crore follow-on
public offering proceeds,
repaid loans aggregat-
ing $2.65 billion to com-
plete a prepayment pro-
gramme ahead of the 31
March deadline to cut
overall leverage in a bid
to win back investor
trust. >P4
planned acquisition of the
thermal power assets of DB
Power Ltd in February.
“This was part of the group’s
discussions with senior bank-
ers immediately after the stock
volatility in the wake of the
Hindenburg report,” the sec-
ond person said, also request-
ing anonymity.
Bankers, the person said,
were told that the group would
focus on executing existing
Precision Forgings Ltd (Sona
Comstar) for $640 million, two
people aware of the deal said.
The sale of shares through
block deals is expected to close
on Monday.
Investment bank JM Finan-
cial is managing the sale, the
people cited above said on con-
dition of anonymity. Black-
stone currently owns approxi-
mately 20.5% stake in Sona
Comstar.
Blackstone plans to sell the
shares through a book-building
process, with a floor price set at
an 8.3% discount to Friday’s
closing price. At this price, the
sale would fetch at least $583
million. However, the people
cited earlier said the company
expects high demand and may
raise as much as $640 million.
recent interest rate hikes have made home
purchases costly. Bankers expect the new
rates to help boost home loan growth. >P6
Dish TV board okays inducting
Yes Bank-backed directors
The 18-month fight between the largest
shareholder and Subhash Chandra for
control of Dish TV India Ltd has entered the
last lap as Dish TV agreed to induct two
independent directors recommended by
Yes Bank Ltd on its board.. >P6
Crypto exchanges may face heat
of money laundering Act rule
The finance ministry’s decision to bring
virtual digital assets under the Prevention of
Money Laundering Act could become a
double-edged sword for crypto exchanges.
According to experts, the step will increase
their compliance burden. >P9
Government opposes same-sex

Insurance Corp. (FDIC) as a receiver.
Due to SVB’s startup-friendly pol-
icies, most US startups, and many
Indian startups with US subsidiaries,
banked exclusively with the bank.
Deposits of significant capital from
fundraises also tended to be parked
TURN TO PAGE 6
U
S treasury secretary Janet
Yellen on Sunday said she
was working closely with
banking regulators to respond to
the collapse of Silicon Valley
Bank and protect depositors, but
a major bailout was not being
considered.
tors to “design appropriate poli-
cies to address the situation,” the
largest bank collapse since the
2008 financial crisis, but
declined to give further details.
“Let me be clear that during
TURN TO PAGE 6
which was called off due to
stock volatility despite being
fully subscribed. The group
wanted to give this business a
fillip, but that won’t happen
now. This business will con-
tinue at its usual pace,” said
one of the people cited above.
Adani has also called off its
projects and deleveraging
themselves. The person said
that bankers were also shown
a snapshot of lender-wise
exposure of the group, show-
ing utilized and total commit-
ted credit data, along with
TURN TO PAGE 6
Sona BLW shares closed at
₹436.9 on Friday, against an all-
time high of ₹789.3 in Decem-
ber 2021.
Once completed, the Sona
BLW transaction will be Black-
stone’s most successful exit
TURN TO PAGE 6
marriage in landmark hearing
The government has opposed giving legal
recognition to same-sex marriages in a
landmark hearing as the Supreme Court is
set to deliberate on various petitions
seeking equality for the LGBTQ community
in proceedings starting on Monday. >P9

2657839 3735095 3735096

Notice is hereby given that our client GIRNAR FOOD & BEVERAGES PVT. LTD. of 401, Centre Point, Dr. B. Ambedkar Marg,
Parel, Mumbai – 400 012, is the registered proprietor of the trade mark “GIRNAR Detox Green Tea (Desi Kahwa)” label
bearing no. 2657839 dated as of 10th January, 2014, “DETOX” (word per se) bearing No. 3691521 dated as of 30th
November, 2017, “DETOX” (label) bearing no. 3735095 dated as of 23rd January, 2018, “DESI KAHWA” (label) bearing
no. 3735096 for "Tea" falling in Class – 30 and trade mark DESI KAHWA (word per se) bearing application no. 4074583
dated as of 1st February, 2019 for “Tea and Green Tea” falling in Class – 30.

Our client is a highly reputed company carrying on the business of manufacturing, selling and exporting tea including
black tea, green tea, avoured tea, fruit tea/infusions, herbal infusions and premixed tea, iced tea and coffee.

Tea under the “DETOX” and “DESI KAHWA” trade marks has been sold in India and exported abroad extensively and
continuously since the year 2012. Our client has advertised their tea under their “DETOX” and “DESI KAHWA” trade
marks in various media including Television, Newspapers, exhibitions, sponsorships, hoardings, posters, buses and the
like in English and vernacular languages on a very large and extensive scale. Due to the excellent quality of the tea
provided under the said trade marks, the said trade marks have acquired tremendous reputation and goodwill amongst
members of the public and the trade. Members of the trade and public associate the trade marks “DETOX” and “DESI
KAHWA” with our clients exclusively.

It has come to our client's notice that certain unscrupulous persons with a view to trade upon our client's reputation and
goodwill in their said registered trade marks and/or with a view to cause confusion or deception amongst customers and
the trade, are using the trade marks “DETOX” and “DESI KAHWA” or deceptive variations thereof in relation to tea or in
relation to goods of the same description. The said acts of such unscrupulous persons amount to infringement of our
client's registered trade marks bearing nos. 2657839, 3691521, 3735095, 3735096 and 4074583 in Class - 30 and
renders such persons liable to infringement and/or passing off proceedings.

Members of the public and the trade must bring to the notice of our client, such wrongful/infringing use of the “DETOX”
and “DESI KAHWA” trade marks word or label by such unscrupulous traders, to enable our client to institute appropriate
legal proceedings, both civil and criminal against such traders, to curb such infringing and wrongful activities.

NOTICE is hereby given that use by any person (whether manufacturer or trader) of our client's registered trade mark
Nos. 2657839, 3691521, 3735095, 3735096 and 4074583 in class 30 or deceptive variations thereof either in respect of
"Tea and green tea" or in relation to goods of the same description, which are not of our client's, shall render themselves
liable to institution of Civil and/or Criminal legal proceedings.

Dated this 9th day of Mar, 2023

DARIUS F. DALAL
JEHANGIR GULABBHAI & BILIMORIA & DARUWALLA
Solicitors & Advocates for GIRNAR FOOD & BEVERAGES PVT. LTD.
Rajabahadur Mansion, 1st Floor, 20, Ambalal Doshi Marg, Fort, Mumbai - 400023
Email: darius.dalal@jgbd.in
02 MoNDay, 13 MaRch 2023
New Delhi ECONOMY & POLICY LIVEMINT.COM

STRAIGHT
F O R WA R D
Settlement for breaches of Govt to
appoint LIC
SHASHI SHEKHAR

Respond to this column at

feedback@livemint.com
competition law on cards chairman
by June
Subhash Narayan
LEGISLATIVE BODIES The amendments are expected to end lengthy litigation and improve ease of doing business
subhash.narayan@livemint.com

NEED TO REPRESENT Gireesh Chandra Prasad tions involving Indian target entities T
he government is set to
appoint a full-time chair-
man at Life Insurance

WOMEN BETTER gireesh.p@livemint.com

NEW DELHI
with local business operations under
the CCI’s M&A regulations.
Another reform the ministry is
Corporation of India (LIC) by
June, a finance ministry official
said, ending speculation over

T
he government is planning expecting to make is about increasing the vacant top job in the state-

N
ew hopes were sown a few days ago during the Women’s to roll out a settlement the penalty for anti-competitive prac- owned insurer.
Premier League (WPL) bidding process. Twenty profes- scheme for competition law tices. The penalty, as proposed, will be The official said the chair-
sional cricketing women joined the crorepati club at this breaches and introduce deal a percentage of the offending com- man would be selected from
time. Smriti Mandhana received the largest sum of all, ₹3.4 crore. value as a measure for regu- pany’s global revenue or income. The among candidates available
Several young players at the Indian Premier League do not receive lating mergers and acquisitions involv- current practice is to levy part of the within the life insurer and
this much money. Even Babar Azam, the cricket captain of neigh- ing global firms by the year end, hoping ‘local or relevant market’ revenue as would serve a term of around a
bouring Pakistan, couldn’t receive as much money. These are the reforms will get Parliamentary penalty. This is likely to be a bigger year.
undoubtedly positive early indications. approval in the budget session itself, deterrence. The official denied any plan
Opportunities for women to reach new heights are fast expand- said two people in the know. Experts said that deal value-based to look for professionals from
ing in other professions, too. But how enthused are women them- Work is underway on framing the merger regulation and negotiated set- the wider industry to fill this
selves about such change? A study published this month answers rules and regulations, which will spec- tlements are significant changes pro- coveted position this year. Any
this question. According to the study, eight out of 10 urban Indian ify the finer points of the amendments posed in the Bill, which could pose such move will only be consid-
women use the internet in some way or the other. Without the to the law, said one of two people aware transition issues, including capacity ered when next round of selec-
internet, it is impossible to progress in the twenty-first century. of the discussions in the government. constraints at the CCI, which needed to tion process is initiated some-
The situation in rural India is not ideal right now, but as a forward- The ministry of corporate affairs will The MCA will modify the proposals in the Competition Amendment Bill, 2022 be addressed on a priority. time in 2024.
thinking country, we should strive to see the glass as half-full rather modify the proposals in the Competi- currently pending in Lok Sabha, in the budget session which resumes on Monday. HT “Considering that these changes are The government is keen to
than half-empty. tion Amendment Bill, 2022 currently being introduced at a time the Com- revamp the structure of LIC by
Without equal political participation, half the country’s popula- pending in Lok Sabha, in the budget said. sion runs from 13 March to 6 April. mission itself is dealing with resource 2024 and allow the appoint-
tion will not be given its due. The latest election in Nagaland exem- session which resumes on Monday, The second person said that modifi- The proposed commitment and set- and staff constraints, is perhaps more ment of a chief executive officer
plifies this. For the first time, two women—Hekani Jakhalu and S. based on recommendations of the Par- cations to the Bill will be made before it tlement scheme will enable businesses worrying. It is is absolutely important (CEO) — instead of chairman —
Krause—have been elected to the Nagaland assembly. liamentary standing committee on is taken up for consideration in both to negotiate settlements with the CCI to build capacity, add more staff and get and four MDs who would
In Nagaland, which values tribal traditions, only 20 women have finance, which studied and pay a fee to the gov- all the members of the Commission on report to the CEO. If this struc-
so far run in the Lok Sabha elections. Of these, only Rano M. Shaiza the Bill. WHAT’S IN THE BILL ernment in case of anti- board while introducing these legisla- ture is adopted as per amend-
was elected to the state’s lone Lok Sabha seat in 1977. “Once cleared in Lok competitive agreements tive changes so that there is no unin- ments to LIC Act carried in
Things began to change last year, when the BJP sent S. Phang- Sabha, the Bill will be REFORMS will GLOBAL M&A deals ANOTHER reform and abuse of dominance. tended consequence or confusion in 2021, the government may
non, a Naga woman, to the Rajya Sabha for the first time. moved in Rajya Sabha in enable businesses to with Indian entities
negotiate with local ops will be
expected is about
increasing penalty
But it won’t be applicable the market. It will also provide assur- rope in professionals outside of
Neighbouring state Meghalaya has a matrilineal system. Among the current session along settlements with brought under CCI for anti-competitive in cases of cartelization, ance to the stakeholders,” said Amol LIC as its CEO while the posi-
ethnic tribes such as the Khasis and Garos, the lineage is traced with modifications. We the CCI regulation. practices which is seen as very seri- Kulkarni, director research at CUTS tion of chairman would be
through the mother’s name, and ownership right on property is expect the regulations on ous offence. This is International, a non-profit, non-gov- removed.
also with her. The youngest woman in the family has the natural commitment and settle- expected to avoid lengthy ernmental organisation working on “The process for selection of
right to inherit the property, according to their age-old customs. ment scheme and merger regulation the Houses in the current session itself litigation and improve ease of doing public interest issues. new full-time chairman of LIC
This is why women in Meghalaya have held key political positions based on deal value threshold later this and that the Competition Commission business. Emails sent to the CCI and to the has been initiated and we will
for many years, but there was a paradox in these elections. Only year once the Bill gets Presidential of India (CCI) will hold public consulta- The proposed new merger regula- ministry of corporate affairs on Friday have a candidate to fill the post
three women were elected as MLAs in Meghalaya, while nine ascent. This is expected well before the tion before the regulations are final- tion criteria is ₹2,000 crore of deal seeking comments, remained unan- before the vacancy expected in
women were elected in Tripura. year-end,” the person quoted above ised. The second half of the budget ses- value, which will bring global transac- swered at the time of publishing. June,” the official said.
In other parts of the country, the situation is somewhat better.
The current Lok Sabha has 82 female
Women in members, representing half the popu-
politics will
open the door
lation. Twelve were elected from Uttar
Pradesh and 10 from West Bengal. Last
time, Congress gave the largest number
Govt to infuse more Energy PSUs wait for LNG prices to cool
for innovative
and practical
thinking
of tickets (54) to women, while the BJP
gave roughly the same number (53).
The next Lok Sabha election may sub-
capital in 3 insurers Rituraj Baruah
rituraj.baruah@livemint.com
two countries to resolve the
issue are still underway, said
stantially boost the proportion of NEW DELHI another official.
women in the House. PTI and above the claim amounts GMTS had inked an agree-

S
The rise of women in politics began with Independence. Such- feedback@livemint.com they are likely to incur. It acts as tate-run oil and gas ment with GAIL for 2.5 mil-
eta Kripalani was the first woman to become chief minister of the NEW DELHI a financial backup in extreme companies currently in lion tonne of LNG supply per
country’s largest state, Uttar Pradesh, and Indira Gandhi was situations, enabling the com- talks with gas producers annum for 20 years, starting

T
elected prime minister in 1966. Thereafter, Mayawati, Mamata he government may have pany to settle all claims. across the world for long- in 2018-19. While the Russian
Banerjee, Rabri Devi, J. Jayalalithaa, Vasundhara Raje, Sheila Dik- to infuse more capital in As per the regulator IRDAI’s term liquefied natural gas long-term LNG cargo started
shit, Anwara Taimur, and others carried the tradition on. India’s the three public sector mandate, the minimum sol- (LNG) contracts have adopted arriving in India in June 2018,
current first citizen is a woman. Prior to this, Pratibha Patil held the general insurance companies vency ratio insurance compa- a wait-and-watch approach the supplies have been stalled
distinction of becoming India’s first female President. to improve their financial nies must maintain is 1.5 to anticipating a further soften- since May 2022 in the wake of
So why couldn’t this process move forward despite the initial health, a senior government lower risks. In terms of sol- ing of prices amid a volatile the Ukraine war.
general acceptance of the right to gender equality in the Constitu- official said. vency margin, the required energy market and supply On 29 September 2022,
tion and the involvement of half the population in politics? One The government last year value is 150%. concerns. Mint reported that India has
reason could be that, with a few exceptions, all women who have provided ₹5,000 crore capital Budget 2023-24 did not While the talks have been reached out to the US, UAE,
achieved high positions in politics come from a specific lineage. to National Insurance Com- provide for capital infusion for on for over a year now, a major IOCL and GAIL are in talks with UAE’s Abu Dhabi National Oil Saudi Arabia and Iraq for LNG
Let us go to an economically backward state such as Bihar, pany Limited, insurance compa- deal would be signed after Company (ADNOC) for a long-term supply contract. BLOOMBERG supplies.
where much has been done to empower women. The Bihar Pan- Oriental Insur- The govt last year nies but the funds prices ease further, said a per- IOCL and GAIL are in talks
chayati Raj Act of 2006 was the first to introduce 50% reservation ance Company provided ₹5,000 can be sought son aware of the develop- for long-term contracts for Indian companies have with UAE’s Abu Dhabi
for women in local bodies, heralding a revolutionary change. Fol- Limited and cr to National through supple- ments. procuring LNG with major long-term LNG contracts for National Oil Company
lowing that, the Manmohan Singh government attempted to United India Insurance, mentary demand, “Now may not be an apt international gas producers 22 million tonnes per annum. (ADNOC) for a long-term sup-
implement it across the country in 2009, but just 20 states have Insurance Com-
Oriental Insurance the official said. time for sealing long-term for the past one year after Gazprom stopped supplies as ply contract. On 27 January,
adopted it so far. Regrettably, some North East states, such as pany. During contracts. Although prices Russia’s Gazprom defaulted spot prices of gas far outpaced Mint had reported that the
Nagaland, remain apprehensive about it. Why? Based on the and United India 2020-21, ₹ 9,950 have come down from the on contracted the price pegged talks are at a fairly advanced
Prime Minister Narendra Modi launched the Beti Bachao, Beti performance in Insurance crore was infused multi-year high levels, they supplies to GAIL Spot LNG prices under long-term stage.
Padhao campaign across the country as soon as he assumed power the FY23, the in three public may fall further with an easing starting May fell to about $14- contracts. Other According to sector
in 2014. As a result, BJP-ruled states were motivated to launch finance ministry sector general of demand,” said the person. 2022. This 15 per mmBtu state-run oil and experts, due to the growth in
numerous initiatives targeting women. Not only that, new avenues would take a call on how much insurers by the government, Spot LNG prices have fallen prompted a from an average gas companies, natural gas consumption of
have opened for girls in previously taboo areas of the Navy, Army, capital they would need to out of which ₹3,605 crore went to about $14-15 per metric chase for sup-
of $45 per mmBtu apart from GAIL
India from the fertilizer and
and other security forces. meet regulatory requirements, to United India Insurance, million British thermal units plies across the have also city gas distribution sectors,
Women’s empowerment is unquestionably a necessity of the the official said. ₹3,175 crore to National Insur- (mmBtu) from an average of globe and turn- in the July-Sep enhanced their India will remain heavily reli-
time, but it won’t proceed at the required rate until the gender ratio They are not in good finan- ance and ₹3,170 crore to Orien- over $45 per mmBtu in the ing towards quarter efforts to secure ant on LNG imports despite
of the population represented in state legislatures and Parliament cial health and funds would be tal Insurance. July-September quarter of expensive spot more and more the projected increase in the
is matched. These legislative bodies are authorized to enact legisla- infused in these entities to aug- Besides capital infusion, an the current fiscal. purchases. long-term con- domestic natural gas produc-
tion. Women’s participation will open the door for innovative and ment their solvency margin, external consultant has also Indian public sector oil and Queries sent to the petro- tracts for LNG. tion and long-term contracts
practical thinking. Women’s equality is just a half-truth without the official added. suggested a host of reforms to gas majors including Indian leum ministry, IOCL and Gazprom is yet to resume are crucial as spot prices have
this. Solvency margin is the capi- be undertaken by these compa- Oil Corporation Ltd (IOCL) GAIL remained unanswered its supplies under the con- been exorbitant and volatile
Shashi Shekhar is editor-in-chief, Hindustan. Views are personal. tal companies must hold over nies. and GAIL have been looking till press time. tract and talks between the as was seen in 2022.

Japan may implement UPI model, inter-linkage: Digital minister Kono CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Shashank Mattoo year’s G7 Digital and Tech border data transfer from each technologies. If we agree the internet like underwater importing good systems to suggestions or complaints
& Utpal Bhaskar Ministers’ Meeting? country. Right now, in Japan among all the countries that we cables. So we are hoping India Japan. about errors.
shashank.mattoo@livemint.com For the G7 digital ministers and the EU, we’re supposed to will test the new technologies will get on board with us. Singapore and India have

‘
Readers can alert the
meeting this year, our number be standing on an equal basis, in the sandbox and if we India has a UPI payment just linked their payments
newsroom to any errors in the
one priority is DFFT or “data but if a small company in Japan pass, it could mechanism. platforms. Will Japan look paper by emailing us, with your

J
apan will send a team to India free flow with trust”. We would wanted to do business in apply to all the Could that at something similar? full name and address to
after April’s G7 meeting to like to operationalize DFFT by Europe, they probably don’t countries par- We are sending a team be an area of The economy is becoming feedback@livemint.com.
closely study the UPI plat- setting up an international know exactly what they have to ticipating. So, after the G7 meetings c o o p e r a - more and more global and the
form, digital minister Kono body with a secretariat. We’ve do in terms of data transfer. any company tion? world is becoming small. So, It is our policy to promptly
to India to see what respond to all complaints.
Taro said. Japan been talking That’s because each country with a new I was just some kind of financial transac-
would consider you are up to. I’m Readers dissatisfied with the

eventually link-
INTERVIEW about
m DFFT on
an ad hoc basis,
has regulation, guidelines,
court judgments and these
technology
could come to
talking to
always pro-importing minister (Ash-
tion mechanism, I think we
need to improve it. There’s a lot
response or concerned about
Mint’s journalistic integrity may
ing systems if his but in order to things change very frequently. the sandbox good systems to Japan wini) Vaish- of cost incurred on money write directly to the editor by
country adopts UPI, Kono said in operationalize it, we need an So, we wanted to set up a data- and have it naw that we transfer, but if there is any good sending an email to
Kono Taro asktheeditor@livemint.com
an interview. He also pitched for international organization with base and automatically update exactly what they have to do. tested and if it Digital minister, japan need to learn technology which can allow us
India to support Japan’s proposal a secretariat to do some con- the new rules. So, if a small Number two, there are a lot of passes, every- from India. to do it, why not? Let us see how Mint’s journalistic Code of
for a new international data crete projects. The number one company in Japan or India or privacy-enhancing technolo- one can use it. We are actu- you do this and see if we can use Conduct that governs our
organization. Edited excerpts: project we need is to set up an whatever wanted to do busi- gies around. We wanted to cre- We also need to discuss AI, fake ally sending a team after the G7 that in Japan. If we’re going to newsroom is available at
international database on the ness in other country, they can ate an international regulatory news and disinformation as meetings to India to see what use the same system, it is prob- www.livemint.com
What will be the goal of this rules and regulations of cross- go to the database and find out sandbox for those emerging well as the physical security of you are up to. I’m always pro- ably easier to link it.

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LIVEMINT.COM
MoNDay, 13 March 2023
New Delhi 03
04 MoNDay, 13 March 2023
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 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%) ClOsE 1-WEEK CHANGE (%)

59135.13 -1.13 17412.90 -1.03 14679.85 -0.64 38083.20 0.20 17244.30 -0.81 24617.91 0.09 27952.11 0.38
1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%) 1-MONTH CHANGE (%) 3-MONTH CHANGE (%)

-2.55 -4.90 -2.48 -5.86 -2.24 -7.16 -1.68 -13.05 -2.49 -7.72 -1.09 -5.66 -1.10 -5.43
6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%) 6-MONTH CHANGE (%) 1-YEAR CHANGE (%)

-1.10 6.62 -2.36 4.93 -5.09 3.46 -13.66 -4.53 -5.24 2.43 -5.09 6.08 -5.34 3.92

m MINT SHORTS
Germany turns page with signs
Ray of hope for steel, aluminium
of green shoots visible Vineetha Sampath
Regaining the lustre product growth target of 5% for 2023 is as curtailment in capacities and sanc-
Germany is approaching the end of the first quarter vineetha.s@livemint.com lower than expectations. Therefore, tion on Russian metal will likely result in
with a sense of quiet optimism that its crisis of 2022 has Average domestic steel prices The average aluminium price in the how growth pans out needs closer supply chain disruption aiding alumin-

S
been consigned to history. Forecasters no longer pre- teel and aluminium producers
dict Europe’s biggest economy will shrink this year, continue to be plagued by sub-
escaping instead with a mild recession that it’s likely to dued demand conditions that
exit in the spring. Some, including Goldman Sachs, have resulted in lower price
even reckon that short downturn can still just be realizations. Even so, there is
averted. Germany’s corporate sector provides grounds hope that the reopening of the key met-
for hope. Industrial output and business expectations als market, China, post the covid-in-
have reached the highest levels since Russia invaded duced lockdowns would boost demand
Ukraine. So has the benchmark DAX stock index. for the two commodities. Some initial
There’s also anecdotal cause for cheer—not least with signs are encouraging. For instance, in
carmaker Volkswagen AG’s projection of a possible 15% February, China’s manufacturing Pur-
jump in revenue this year. Meanwhile China’s reopen- chasing Managers’ Index (PMI) touched
ing offers bright prospects for exporters. In a taste of a 11-year high of 52.6. Further, the woes
what could transpire, German factories saw a surge in in the real estate sector appear to be bot-
orders from abroad as 2023 began. BLOOMBERG toming out.
In this backdrop, China’s export hot
rolled coil (HRC) steel price, a good indi-
cator of global prices, has risen by 14% in
2023 so far, rebounding from a 23%
decline last year. The Indian domestic
markets reflect the same trend. The
average price of HRC in March stands at
₹60,700 per tonne, up by 12.5% from
December. In 2022, prices had fallen by
17.5%. Further, the average price of alu-
minium on the London Metal Exchange
in the March quarter so far is about 5%
higher sequentially on the hopes of
improved demand from China.
have risen consistently in the past March quarter so far is up by nearly tracking. Besides, muted demand in rest ium realizations,” said a report by JM
three months. 5% sequentially.
of the world is also a pain point. Financial Institutional Securities dated
Domestic HRC monthly average prices Aluminium prices on the London Metal Exchange
(exclusive of 18% GST) (in ₹ per tonne) (in $ per tonne)
Meanwhile, in the past year, Tata 9 March. In 2022, smelter curtailments
80,000 4,500
Steel’s shares are down by about 17% as rose across Europe due to the energy
weak performance of its European busi- crisis.
75,000 ness weighed on investor However, falling thermal
4,000
sentiment. The company’s IMPROVING coal price is a silver lining as
70,000 European operation was in PROSPECTS it aids aluminium spreads
3,500 the red in the December and Hindalco Industries
65,000
quarter. Steel price realiza- REOPENING of Ltd’s Indian operations ben-
60,700
60,000
3,000 tion in Europe is expected to China, a key metals
market, could boost
efit from this.
drop sequentially this quar- demand for steel This along with a better
55,000 2,500 ter. and aluminium outlook in its overseas busi-
56,875 On the other hand, shares ness, Novelis Inc., would aid
50,000 of Jindal Steel & Power Ltd FALLING thermal sentiments of investors in
Jan 2021 Mar 2023 2,000 2,281.4 coal price could aid
Note: a) HRC is hot rolled coil have gained 23% in the last aluminium spreads Hindalco stock, which is—
2,013.5
b) Domestic prices are market prices in Mumbai one year. Lower debt levels and Hindalco down by almost 32% in the
(HRC 2.5-8mm, IS2062) 1,500 and comparatively better benefits from this past one year.
c) The domestic assessment is a weekly one which 4 Jan 2021 10 Mar 2023
is done every Wednesday earnings performance given Overall, the ongoing
Source: SteelMint Source: Bloomberg
less foreign exposure have quarter is a seasonally strong
SATISH KUMAR/MINT
helped sentiments. For steel makers, one. But eventually, a pick-up in global
That said, it may be too early to aluminium is nearly 43% lower than its the rising cost of coking coal (a raw demand is crucial for volumes and reali-
rejoice. “We need to see consistency in multi-year high of $3984.50 per tonne material) needs to be watched out for, as zations to rally.
the recovery of the Chinese economy. It seen in March 2022. Recall that alumin- it would weigh on margins. Jefferies global commodities team
is early to interpret from the PMI read- ium prices had shot up in the early part For aluminium, some tailwinds are believes a meaningful cyclical recovery
ing that a meaningful rebound has taken of 2022 on the back of concerns over foreseen in the latter half of 2023. in China looks increasingly likely this
place,” said Satyadeep Jain, analyst at supply disruptions due to the Russia- “While demand is unlikely to return in year. However, if that doesn’t play out,
Ambit Capital. Ukraine war. force before the second half of the year, this year would be another muted one
As things stand, the current price of To be sure, China’s gross domestic markets will be vulnerable when it does for metal companies.

Core CPI, which excludes food and energy, is forecast to

rise 0.4% for a third straight month in February. ISTOCK For Phoenix Mills to rise, consumption needs to pick up
Fed rate puzzle gets final Bavadharini KS December 2022 respectively. Out of this, Phoenix’s share is too, room occupancy and revenue
Growth path
inflation, retail pieces bavadharini.ks@livemint.com Year-to-date (April to February),
Retail consumption at Phoenix's malls in February was higher
about 77% or ₹1,730 crore, said have improved sequentially.
Reports this week expected to show still-hot US infla- like-to-like consumption was ICICI Securities. Nuvama Research expects revival
year-on-year, but fell month-on-month owing to seasonal factors.

R
tion and a backslide in retail sales round out the last of etail consumption at malls 114% of FY20 levels. Given this, The retail business is Phoenix’s of consumption at malls and hotel
key economic data markers for Federal Reserve poli- run by The Phoenix Mills for FY23, ICICI Securities has Retail consumption (in ₹ crore) mainstay, contributing 68% of occupancy, and liquidation of
1000
cymakers ahead of their upcoming meeting.The core Ltd has remained steady in pencilled in a rental income of revenues for the nine months ready inventory in the housing
consumer price index, which excludes food and February, although not particu- ₹1,340 crore (or ₹1,200 crore on 800 ended December. The company segment, to culminate in robust
energy and provides a better sense of underlying larly exciting. Month-on-month, a like-to-like basis) versus ₹1,030 also derives revenues from resi- cash flows for Phoenix Mills.
600
inflation, is forecast to rise 0.4% for a third straight total consumption fell by 21% due crore in FY20. dential, commercial, hospitality To be sure, a slowdown in con-
month in February. The median estimate of econo- to seasonality factors such as As and when Phoenix adds 400 and others. Phoenix’s hospitality sumption is a looming near-term
mists surveyed by Bloomberg also calls for a 5.5% gain fewer number of operational malls to its portfolio, that should segment has been on a strong risk for the stock, which is down
200
from a year ago. Tuesday’s inflation data follow fresh days in February, lack of festivals aid consumption, going ahead. footing this year. Higher room nearly 19% from its 52-week high
figures showing robust employment growth in Febru- and the end of the holiday season. Last month, the company’s Pal- 0 rates are a factor helping the seg- seen in November. “Entry in new
Jan 2022 Feb 2023
ary but also hinting at a further softening in wage On a like-to-like basis, con- ladium mall in Ahmedabad com- Source: Company presentation
ment’s performance. Phoenix’s St. cities and operationalization of
gains that may help to temper price pressures in the sumption for last month was menced operations. Further, Regis, Mumbai, saw a sharp 23% under-construction/planned
coming months. While inflation is seen remaining 110% of February 2020 (pre- two malls in Pune and Bengaluru SATISH KUMAR/MINT
month-on-month jump in reve- assets are some of the stock trig-
elevated as Fed policymakers consider stepping up covid levels). This excludes con- are expected to become opera- around 14 mn sq. feet (msf), up growth rate (ex-new Kolkata nue per available room in Febru- gers that we expect to play out
the pace of rate hikes, officials will also consider the tribution from Phoenix Palassio tional in the June quarter from 6.9msf in FY22. ICICI asset) in rental income over ary to ₹18,180. Occupancy rate over the next few years,” analysts
impact of their yearlong tightening campaign on the and Phoenix Citadel, which (Q1FY24). By FY27, Phoenix’s Securities expects Phoenix to FY20-25E, resulting in ₹2,240 rose to 89% from 83% in January. from Nuvama Research said in a
financial system. BLOOMBERG opened in July 2020 and retail space is expected to be achieve a 17% compound annual crore of rental income in FY25E. At Courtyard by Marriott, Agra, report on 8 March.

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

Tech leaders race Adani repays $2.65 bn debt, releases Ambuja Cements share pledge
to contain SVB crisis Anirudh Laskar
anirudh.l@htlive.com
conglomerate, has been on a
debt-prepayment spree to slash
level, supplementing the solid witnessed a sharp fall in mar-
capital prudency adopted at all ket capitalization following
least ₹20,000 crore of debts to
lower the group’s leverage.
MUMBAI the group’s leverage levels fol- portfolio companies,” said the the Hindenburg Research On Thursday, the SB Adani
Bloomberg lowing a 24 January report by group statement. report, is now seeking to Family Trust, an Adani pro-

B
feedback@livemint.com illionaire Gautam Adani US-based short-seller Hinden- On 10 March, the Financial rebuild investor confidence by moter group entity, sold
has fully repaid $2.15 bil- burg Research that accused the Times newspaper reported prepaying loans. between 2.5% and 4.1% of its

A
sia’s tech leaders, half a
world away from the
chaos that’s engulfed
Silicon Valley, are scrambling
to assess the potential ramifica-
tions for an industry that’s
always relied heavily on US
capital and connections to
supercharge growth.
Financiers and entrepre-
neurs packed the Shangri-La’s
ballrooms during a global
Wharton alumni gathering in
Singapore, huddling in groups
and tables over gourmet buffet
meals with the latest news on
Silicon Valley Bank’s spectacu-
lar implosion on Friday a main
topic of conversation. In Mum-
bai, startup founders and inves-
tors at a conference talked
about nothing else, exchanging
rumors about which fledgling
company might be the first to
fall. In Shanghai, SVB’s local
partner and joint venture
issued memos within hours of
each other, seeking to calm
worries about their stability.
In the past days, the region’s
The meltdown is being
watched with a mix of fear and
fascination. AP
as they monitored SVB’s stock
price and news headlines on
Thursday night in Beijing,
before deciding overnight to
pull their funds out of the bank.
An executive of Airbnb-style
lodgings service Xiaozhu,
warned by its venture backers,
pulled over on an expressway to
withdraw the company’s
deposits over the phone, and
succeeded, one of the people
said. A representative for Xiao-
zhu declined to comment.
Others weren’t so lucky. An
Indian founder told Bloomberg
News he failed to retrieve com-
lion of margin-linked,
share-backed funding before
its target 31 March deadline,
the company said on Sunday.
Additionally, Adani also pre-
paid a $500 million loan facil-
ity for acquiring Ambuja
Cements Ltd, taking the total
prepayment by the Adani fam-
ily to $2.65 billion.
“Adani continues to
increase equity in Ambuja
financing by prepaying $500
million as a commitment to
reduce sponsor-level lever-
age,” the group said in a late
evening statement.
The Adani family, the pro-
moters of the port-to-power
Fed, SVB closure put market on edge; FPIs brace for fall
Ram Sahgal
ram.sahgal@livemint.com
MUMBAI
group of stock manipulation and
accounting fraud. The group has
denied the allegations.
“In continuation of promot-
ers’ commitment to repay the
promoter leverage, Adani has
completed full prepayment of
margin linked share backed
financing aggregating to $2.15
billion, well before the com-
mitted timeline of 31 March
2023,” the statement said.
“In addition to the above,
promoters have also prepaid a
$500 million facility taken for
Ambuja acquisition financing.
This is in line with promoters’
commitment to increase
equity contribution, and pro-
coinciding with US labour mar-
ket data for February and the
SVB fiasco. While US job
growth exceeded expectations,
Billionaire Gautam Adani.
moters have now infused $2.6
billion out of the total acquisi-
tion value of $6.6 billion for
Ambuja and ACC cement. The
entire prepayment pro-
gramme of $2.65 billion has
been completed within six
weeks, which testifies to the
strong liquidity management
and access to capital at sponsor
chases of index puts by 70,307
contracts to 410,928 contracts
over two sessions through Fri-
day. In the same period, prop
that Gautam Adani is seeking On 7 March, Adani group holdings in Adani Enterprises,
to sell a stake in said it has prepaid Adani Ports, Adani Green
Ambuja Cement Additionally, share-backed Energy, and Adani Transmis-
for about $450 Adani has also loans totalling sion for ₹15,446 crore through
million, citing prepaid ₹7,374 crore a series of bulk deals to
people familiar a $500 million ahead of their US-based GQG Partners.
with the matter. maturity in April However, it could not be
loan facility for
MINT A person close 2025, as the con- ascertained immediately if
to the Adani acquiring Ambuja glomerate aims to Adani group is using the
group confirmed Cements Ltd reduce promoter amount raised from GQG to
this to Mint. leverage. prepay loans.
The embattled The repay- Adani Group shares plunged
Adani Group last year ment to various international after Hindenburg Research
acquired Holcim AG’s cement banks and Indian financial report alleged accounting
businesses in India—Ambuja institutions released shares of fraud and price manipulation
Cements and ACC Ltd—for four listed Adani companies against the conglomerate. This
$10.5 billion, its largest-ever from encumbrance. forced Adani Enterprises to
acquisition. Over the past month, the withdraw its ₹20,000 crore
Adani Group, which has Adani family has paid off at follow-on public offering.
higher risk-return trade-off in shutdown of Silicon Valley
Volatility ahead
Nifty on a downhill drive emerging markets,” said Salil Bank has also spooked global
Pitale, joint managing director markets and made the Fed’s
19,000 & co-chief executive officer, decision on rate hikes more

tech luminaries and family offi-
ces have watched with a mix of
fear and fascination at the melt-
down that engulfed a decades-
old bank that once carried
$200 billion of assets. The col-
lapse sent shockwaves through
Asia as major investors and sov-
ereign funds rushed to check
the exposure of their portfolios
and investees to the failed len-
der, according to people famil-
iar with the matter.
At an investment firm that
backs ByteDance Ltd., execu-
tives were glued to their screens
pany funds and is now left only
with working capital. Another
was scurrying to stop and
reroute customer payments
into his company’s SVB
account, while also setting up
new arrangements for salary
payments.“I’m not sure how
many of you spent all of last
night reading about Silicon
Valley Bank and mapping out
the implications?” Alp Ercil,
whose Hong Kong-based fund
Asia Research & Capital Man-
agement controlled $3.5 billion
in assets as of January asked.
V
olatility is expected to
rock Indian markets this
week, thanks to the
upcoming interest rate
announcement in US and the
fallout from the Silicon Valley
Bank collapse. Activity in the
options market indicates that
foreign portfolio investors
(FPIs) are bracing for a plunge.
After purchasing shares
worth ₹13,540 crore in the
month through 9 March, for-
eign portfolio investors (FPIs)
net sold a provisional ₹2,061
crore of shares on 10 March,
wage growth slowed, present-
ing a mixed bag of data. So far,
in 2023, FPIs have sold shares
worth ₹20,606 crore.
Apart from cash market sales
on Friday, FPIs purchased
more index put options on
Thursday and Friday, which
allowed them to sell the Nifty at
pre-agreed prices. Proprietary
traders who provide liquidity to
the markets simultaneously
stepped up sales of index call
options, indicating they’re rul-
ing out a market rise this week.
FPIs raised cumulative pur-
traders sold a whopping 177,417
more calls, cumulatively taking
the total to 251,614 contracts
net sold. Put options offset
losses to FPIs’ portfolios when
markets correct. Call options
lose value when markets fall
rather than rise, which helps
prop traders pocket the premi-
ums the call buyers pay.
FPI and proprietary actions
ahead of the weekend under-
score caution by two critical
constituents in the market,
according to Rohit Srivastava,
founder, IndiaCharts.
18,812.5 Axis Capital. “In the long term,
18,500 though, we remain super-bull-
ish on India, given multiplier
18,000 effects of government’s mas-
sive infra spend, rapid digitiza-
17,500 tion of Indian markets and
more widespread consuming
17,412.9
17,000
population.”
1 Dec 2022 10 Mar 2023 Market veterans remain cau-
Source: NSE
tious about the near-term out-
SATISH KUMAR/MINT
look, as rising interest rates in
“The turn in the interest rate the US raise the cost of money,
cycle since March 2022 in the hurt corporate balance sheets,
US means that FPIs are cur- and result in fund outflows
rently preferring the safety and from emerging markets to the
yield of the US dollar to the safety of the dollar. The shock
challenging.
“The US Fed is doing a deli-
cate balancing. If they raise
rates, leveraged households,
banks and the government will
have to carry a heavy burden,”
said Nilesh Shah, group presi-
dent and managing director of
Kotak AMC. “If they don’t raise
rates, inflation will remain ele-
vated for a longer time. They
are raising rates at the fastest
pace and withdrawing liquidity
at a slower pace, with the hope
that inflation will subside with
a mild recession.”
LIVEMINT.COM CORPORATE MoNDay, 13 March 2023
New Delhi 05

Govt to block HZL plan Lamborghini rolls into smaller cities

PTI structure development to fuel future Lamborghini began its India opera-

for Vedanta zinc assets feedback@livemint.com

New DeLHi
business growth.
Lamborghini India Head Sharad
Agarwal said a few years ago demand
tions in 2007. Last year it sold 92 units
in India, a growth of 33 per cent over 69
units in 2021.

H
aving established a presence
across top cities in India, Italian
automaker Automobili Lam-
borghini is now eyeing customers in
smaller centres to generate additional
Majority of minority shareholders must approve deal; govt holds 29.5% in HZL volumes, according to a top company
official. The super sports car maker is
bullish on the country’s economic
Gulveen Aulakh & Mihir Mishra growth, a rise of first-generation entre-
New DeLHi preneurs and large-scale road infra-
was largely in bigger cities and metros
but now it is well spread out.
“We launched a programme and
reached out to possible customers in
100 cities. Today we have 50 cities in
India where you can find a Lambor-
ghini owner and these Tier I and Tier II
cities contribute to more than 25% of
business. So these cities are becoming
very important for us,” he said.
The Italian brand sells three models
-- premium SUV Urus and two super
sports cars Huracan Tecnica and Aven-
tador in the country, with prices start-
ing upwards of Rs 3 crore.
Agarwal stated that the company
now has customers in places like
Amritsar, Shillong, Lucknow, Udupi,
and Ajmer as the demand is fairly
spread out.

H
industan Zinc’s purchase of
Vedanta’s zinc assets under the
proposed sale approved by the
company board is unlikely to go
through, considering that a
majority of minority shareholders will not
approve the move, regardless of their share-
holding, said a government official. Vedanta
owns a 64.9% stake in HZL while the govern-
ment holds 29.5%.
“In a related-party transaction, the promot-
ers have to take approval of a majority of the
minority shareholders by law, irrespective of
the minority shareholding. Even if Vedanta
had a 70% holding in HZL, it will not matter
because they will have to sit out during the
voting,” the official said seeking anonymity.
In the event the government was a related According to the mines ministry, the HZL board’s decision to acquire Vedanta’s zinc assets is a
party, the same rules would have applied to it, related party transaction, and also violates minority shareholder rights.
and it would have to sit out of the voting, the
official added. It implies that the transaction is a wholly owned subsidiary of Vedanta, on the grounds that a company like HZL must
involving acquisitions through an all-cash through THL Zinc (Mauritius). THL Zinc will grow beyond and tap other mineral sources
deal of $2.98 billion would be stalled. become a wholly owned subsidiary of Hindu- from across the world, since sources in its key
As part of the divestment plan, the govern- stan Zinc. markets of India and countries in Southeast
ment plans to sell its stake in HZL, but funding The board approved the deal despite oppo- Asia may be exhausted over time. Misra had
the acquisition of Vedanta’s assets through sition from members of the ministry of mines said India’s annual zinc consumption is
HZL’s cash reserves and debt would impact that are part of the board. 650,000-680,000 tonnes and is likely to
the valuation of the government’s stake. The mines ministry has written to the mar- grow at 3-4%. HZL produces 800,000 tonnes
According to officials, the government will ket regulator reiterating its opposition to the annually. Hence, the company needs new
prefer to sell its holding in tranches and in the deal, adding that all three government repre- reserves to expand, he added.
first instance may offer 5-8%. At the According to a senior finance
current market cap of HZL, a 5% DEADLOCK OVER SALE ministry official, Sebi rules govern-
stake sale could fetch the govern- ing offer-for-sale (OFS) procedures
ment over ₹6,400 crore, which will EVEN if Vedanta had THE transaction THE mines ministry for listed companies would prevent
go towards meeting the disinvest- 70% holding in HZL,
it won’t matter as
involving acquisition
through an all-cash
has written to the
market regulator
any attempt to sideline the minority
ment target of ₹50,000 crore for they will have to sit deal of $2.98 billion reiterating their shareholders’ concerns regarding
FY23. The target was revised out during voting would be stalled dissent to the deal the deal, since the rules prohibit
downwards from ₹65,000 crore. So promoters to take more than a third
far, the Centre has received ₹31,106 of shares from the open market if
crore in disinvestment receipts. sentatives on the board of the company had the government were to undertake an OFS.
Emails to Vedanta Group and the finance opposed the proposal at the meeting. Accord- “Sebi rules say that, as promoters, Vedanta can
ministry did not elicit a response as of Sunday ing to the mines ministry, the HZL board’s bid for or buy at most one-third of the shares
evening. When contacted by Mint, HZL decision to acquire these assets is a related put up for OFS, whenever that happens. If we
declined to comment on the matter. party transaction, and also violates minority do 5% they can’t take up more than 1.5% stake.
On 19 January, the HZL board approved the shareholder rights. And can’t go above 75% shareholding in HZL
acquisition of Zinc International’s assets held HZL chief executive Arun Misra backed the anyway,” he added.
by THL Zinc Ventures Ltd (Mauritius), which board’s decision in a conversation with Mint, gulveen.aulakh@livemint.com
06 MoNDay, 13 March 2023
New Delhi CORPORATE LIVEMINT.COM

Lenders lower rates as Battle for Dish TV control nears end Varun Sood members in the last 15 months, vice the loans made the lender

home loan growth dips varun.sood@livemint.com

Bengaluru
Aggarwal’s second tenure runs
the risk of being a short-lived
one, according to two execu-
invoke the Dish TV shares that
were pledged with the bank. In
December last year, Yes Bank

T
he 18-month fight tives. transferred its shares to JC
between the largest On Friday, Dish TV told the Flowers Asset Reconstruction
shareholder and Sub- exchanges that its two-mem- Co., making the asset recon-
hash Chandra for control of ber board had considered the struction company the largest
Dish TV India Ltd has now candidatures of Girish Par- shareholder, owning 24.19%.
Bankers expect the new rates will help boost home loan growth entered the last lap after the anjpe and Arvindnachya Chandra’s family, as the
country’s third-largest satel- Chandranachya and advised promoter, owns 4.04% as of 31
lite television provider agreed the management to seek con- December.
Gopika Gopakumar to induct two independent sent from both executives. Dish TV also said that it
gopika.g@livemint.com directors recommended by Both Paranjpe and Chandra- appointed Zohra Chatterji, a
MuMBai Yes Bank Ltd on its board. nachya, who were part of the retired bureaucrat, as an inde-
Some investors, who have seven directors recommended pendent director. Chatterji’s

B
anks and home financiers are revolted against the Chandra- Subhash Chandra, by Yes Bank in September appointment has to be
offering special rates before the owned firm for close to two chairperson, Essel Group. 2021 to be inducted on the approved by shareholders
financial year-end to lure cus- years, have called the induc- board of Dish TV, are expected within three months.
tomers amid sluggish demand, tion of two directors the begin- end of the financial year, to formally join the board “Until now, the largest
as recent interest rate hikes have ning of the process, which implying Rashmi Aggawal’s within a month, said an execu- shareholder in the company
made home purchases costly. should end with the company tenure will end by 30 Septem- tive privy to the development. did not have any representa-
State Bank of India (SBI), for instance, is eventually getting sold, and in ber or by when Dish TV, which “It is given that sharehold- tion on the board,” said a sec-
offering a home loan rate of 8.5% for cus- turn, benefiting shareholders. follows an April-March finan- ers will approve their (Par- ond executive. “Now the board
tomers with a credit score of above 750. Significantly, the tenure of cial year, needs to convene its anjpe and Chandranachya) has two members recom-
Similarly, Housing Development Finance Dish TV’s only two directors, annual shareholder meeting. appointments,” said an inves- mended by the largest share-
Corp. (HDFC) is offering 8.7% to customers Rashmi Aggarwal and Shankar Shankar Aggarwal’s current tor in Dish TV on the condition holder. One cannot speak on
with a credit score of above 760. Last week, Aggarwal, ends later this year. five-year term ends on 24 of anonymity. “This is the path behalf of the board, but the
Bank of Baroda slashed home loan rates by Rashmi Aggarwal’s second October. If Aggarwal seeks a to control the company (Dish hope is that they will move
40 basis points to 8.5% and waived the pro- term as independent director second term, his candidature TV) for JC Flowers.” quickly to expand the board
cessing charges on such loans. ends at this year’s annual gen- must be put up for a vote Essel Group founder Sub- and then order a forensic
Bankers expect the new rates will help eral meeting. A listed company before shareholders. Consid- hash Chandra had borrowed audit, and then decide on the
boost home loan growth with competition has to convene an AGM meet- ering Dish TV’s shareholders over ₹5,000 crore from Yes future of the company by look-
increasing in a rising interest rate scenario. ing within six months from the have removed nine board Bank, and his inability to ser- ing to sell it to the right suitor.”
Since May 2022, RBI has raised interest Home loan borrowers, who had taken loans at 6.5% earlier this fiscal year, have seen
rates by 250 basis points. Home loan bor- their borrowing costs increase to 9%. ISTOCK
rowers, who had taken loans at 6.5% earlier
this fiscal year, have seen their borrowing interest rates,” said a senior official at a Some large real estate players in metros
costs increase to 9%. Although the impact housing finance company.
of rising costs of funds on loan growth has
and larger cities are offering subvention to
Recent RBI data showed a month-on- reduce the interest burden on customers,
Revenue financiers fund SVB-hit startups
not yet been felt, bankers said the rate of month fall in the mortgage book, including but that may not be enough to completely
growth has slowed. “The rush for home priority sector lending (PSL) in absolute offset the impact of the rate hike,” Emkay Ranjani Raghavan to startups against future the companies’ data and with- ing process at GetVantage that
loans seen during the festive season tapers terms, while the growth rate has moder- Global Financial Services said in a report on ranjani.raghavan@livemint.com receivables. Recur said it had out diluting equity,” Gupta requires deep analysis of
down in the first 2-3 months. In March, ated to 15.4% from a year ago at the end of 10 March. Real estate players said the slow- MuMBai also waived its fee. However, said. financials, bank statements
there is growth. Many people come to buy January from 16% at December-end. down in the rate of home loan growth typically institutional investors GetVantage, another recur- (Indian and SVB), and other

S
a house or take a loan and the would translate into a slow- tartups impacted by the on its platform buy startup ring revenue financing firm, is data sets,” he added, on how it
benefit of income tax. During COMPETITIVE RATES down in real estate demand collapse of Silicon Valley receivables for a offering a loan of will evaluate deserving start-
March, we can expect 9-10% with a lag of four months. So, Bank (SVB) are being discount of 8-10%, The firms are $250,000 to ups for loans.
growth over the December SBI is offering a HDFC is offering a BOB slashed rates one could get a clear picture offered interim financing from Eklavya Gupta, extending credit startups impacted Revenue-based financing
quarter,” said Prakash Chan- home loan rate of
8.5% for customers
rate of 8.7% to
customers with a
by 40 basis points to
8.5% and waived
only after the March quarter. funding platforms such as co-founder of against frozen by the collapse of firm Klub, which raised a Rs
dra Kandpal, deputy manag- with a credit score of credit score of processing charges That said, they said that the Klub Works, Recur Club, and Recur Club said. SVB deposits and SVB, Bhavik Vasa, 200 crore fund last year, said it
ing director of SBI. above 750 above 760 on such loans real impact of the rate hikes on GetVantage. Recur has founder and chief is providing “emergency
against future
“The market is experienc- real estate prices could be only The firms are extending already received executive of Get- financing up to $400K within
ing a little less exuberance. It’s 5-8% as most of the input cost credit against frozen SVB enquiries from working capital Vantage said. 48 hours” to startups impacted
not a slowdown. Extra demand, which was “Although the correlation between the increase has been absorbed by the develop- deposits as well as against over 100 startups. receivables “Many of the by the SVB collapse. “We are
there, has normalized. For a floating-rate rates and mortgage growth has not been ers. “Demand is pretty strong, but demand future working capital receiv- “We are work- startups affected offering capital solutions for
loan, the interest rate will go up and down very strong in the past, our discussions with growth is coming down. There is no ables, they said. ing to provide are fundamen- all use cases, including work-
from time to time. So, where interest rates Andromeda (the largest direct selling de-growth,” Anuj Puri, chairman of Ana- Recur Club, a fintech inter- instant non-dilutive financing tally good businesses, generat- ing capital, inventory financ-
are while taking a loan is not very impor- agent) suggest that rate hikes coupled with rock group, said. “Mortgage rates are one of mediary that connects startups solutions for startups to fund ing revenues that are caught in ing, and payroll—whether
tant. If it is high, it will become low at some rising property prices may have some the key factors for homebuyers and, if they to institutional investors, said it their payroll and short-term an unfortunate situation,” startups require short-term
other point in time. It’s not as if your long- impact on the pace of mortgage growth have product offers, then it will help boost created a $15 million capital working capital requirements Vasa said. “We maintain our working capital loans or credit
term demand will get impacted because of (which will be more visible post-March). sales.” pool to offer interim financing within 48 hours of receiving strict data-driven underwrit- lines,” the firm said.

Adani group looks to halt some investments Blackstone looks to

FROM PAGE 1
exit Sona Comstar ate plans to hold off fresh capi-
tal expenditure.
other upcoming repayments. “Now, the group will use
“Lenders were assured that funds primarily for debt repay- FROM PAGE 1
by going slow on certain plans, ment and maintenance capex
companies in the group would rather than for the renewable `from India. Blackstone
make sure they deliver exist- energy business that is housed acquired Comstar Automotive
ing projects on time,” the per- under Adani New Industries,” Technologies in 2017. The next
son said. the person said. year, it bought Sona BLW Pre-
Janet Yellen, US treasury secretary. AP An email sent to an Adani It may be a bit challenging cision Forgings Ltd and
group spokesperson remained for the group to implement merged them to form Sona

‘Working to address unanswered.

In December 2021, group
flagship Adani Enterprises Ltd
these plans within the original
timeframe, the person said. As
Mint reported earlier, at the
Comstar. Overall, it invested
around $385 million in the two
businesses.
launched Adani New Indus- group level, Adani generates In absolute terms, Black-
SVB collapse, not tries to incubate, build and
develop a large integrated
Adani generates around ₹57k-60k crore from operations. BLOOMBERG

ments of $70 billion over the and a few other planned ven-
around ₹57,000-60,000
crore from operations, and
stone has already made
₹12,800 crore or $1.6 billion in
Blackstone made $1.6 billion
in capital gains. BLOOMBERG

looking at bailout’
FROM PAGE 1
the financial crisis, there were
investors and owners of sys-
temic large banks that were
bailed out...and the reforms
that have been put in place
means we are not going to do
that again,” Yellen told CBS.
“But we are concerned about
depositors and are focused on
trying to meet their needs,”
Yellen said. California banking
regulators on Friday closed
SVB, appointing the Federal
Deposit Insurance Corporation
(FDIC) as receiver to protect
depositors at the startup-fo-
cused lender.
The collapse of the startup-
focused bank has raised con-
cerns about runs on regional
banks, and the ability of small
businesses that banked with
SVB to pay their employees.
Yellen met on Friday with
officials from the FDIC and the
Office of the Comptroller of the
Currency to address the bank’s
collapse, and she and White
House officials expressed con-
fidence in the ability of banking
regulators to respond.
On Sunday, she sought to
reassure Americans that the US
banking system was safe, better
capitalized and more resilient
than during the 2008 global
financial crisis, given new con-
trols and capital requirements
put in place after 2008 and
tests during the early days of
the covid-19 pandemic.
“Americans can have confi-
dence in the safety and sound-
ness of our bank system,”
Yellen said, adding that regula-
tors wanted to ensure that the
crisis did not spread to other
banks.
“We want to make sure that
the troubles that exist at one
bank don’t create contagion to
others that are sound,” she said.
Asked if the US government
would consider the acquisition
of SVB by a foreign bank, Yellen
said: “So this is really a decision
for the FDIC, as it decides on
what the best course is to
resolve this firm. And I’m sure
they’re considering a wide
range of available options. That
would include acquisitions.
The FDIC stepped in Friday
to protect the deposits of up to
$250,000, but deposits over
that amount—which
accounted for 85% of SVB
accounts—are at risk.
Asked if depositors should
be paid back in full, Yellen
declined to comment on the
details. “We’re very aware of
the problems that depositors
will have. Many of them are
small businesses, that employ
people across the country. Of
course this is a significant con-
cern.” More than 3,500 CEOs
and founders representing
some 220,000 workers have
signed a petition appealing
directly to Yellen and others to
backstop depositors and warn-
ing that more than 100,000
jobs could be at risk. Venture
investors have advised startups
to seek alternatives to gain
short-term liquidity.
platform to produce green
energy. According to Adani
Enterprises’s annual report in
FY22, Adani New Industries
plans to assist the nation’s
transition from an importer of
fossil fuel energy to a green
energy nation with an invest-
ment of $50 billion across the
decade.
Like Reliance Industries,
the Adani Group is also in the
race to become a standout new
energy company. While RIL
has committed $10 billion over
the next three years, the Adani
group has committed invest-
Lenders offer lifeline to startups affected by SVB’s collapse
FROM PAGE 1
with the bank.
They temporarily lost access
to their accounts and those
deposits after the bank was shut
down on Friday night. Some
startups took preemptive
action hours before US authori-
ties took charge by transferring
funds aided by the Indian
banks. Not everyone suc-
ceeded.
“SVB allowed startups to set
up bank accounts in the US
without the use of social secu-
rity numbers. This was one
major advantage for non-US
residents,” a startup founder,
who has some exposure in bank
deposits in SVB, said.
FDIC provides insurance of
$250,000 on each bank
deposit, but SVB filings state
that 97% of its deposits held
next decade. The first person tures. Capex outlay for these half of this is available as cash capital gains, including comment remained unan-
said that as a fresh strategy, the new businesses may be
Adani Group would not enter trimmed now as the primary
any new business focus for the
in its books, which could be
used to repay debt. The group
has already repaid over
through two previous part-ex-
its from 2018 to 2012. It sold
₹5,250 crore at the time of Sona
swered. Sona Comstar makes
parts such as differential
assemblies and gears, conven-
for the time being Like Reliance moment has ₹11,000 crore over the past BLW’s initial public offering in tional and micro-hybrid starter
and would keep Industries, the changed now,” month and raised another June 2021. In August 2022, it motors, BSG systems, EV trac-
some of the origi- Adani Group is the first person ₹15,446 crore from US-based sold another chunk for ₹4,044 tion motors and motor control
nally planned also in the race to said. boutique investment manage- crore. It also took some money units. It supplies them to origi-
investments in On 6 February, ment firm GQG Partners by out at the time of the Comstar- nal equipment makers across
become a
new ventures on Mint reported offloading some promoter Sona BLW merger. According the US, Europe, India and
hold. standout new that the Adani stakes. “While the FPO to a person familiar with the China, according to its website.
“ A r o u n d energy company group plans to amount was supposed to speed matter, Blackstone has already The company reported con-
₹4,000-5,000 trim its capital up the expansion of the new returned at least 12 times the solidated net sales of ₹2,130.6
crore from the spending, a business ventures, which will multiple on invested capital in crore in FY22, against ₹1,566.3
FPO proceeds were supposed report the group denied. Then be delayed, these businesses dollars before the latest trade. crore in FY21, and profits of
to be used to run new business on 13 February, Bloomberg also will continue to remain in An email sent to a spokesper- ₹348.2 crore versus ₹229 crore
under Adani New Investments reported that the conglomer- Adani’s focus,” the person said. son for Blackstone requesting during the same period.
capital more than that. startups affected by the col- “We are making sure that tor said.
The regulator promised lapse of SVB. startup founders will have “Typically, a PAN number
access to the insured deposits “We are actively engaging another US dollar bank out of for a foreign entity takes two to
on Monday morning. However, with these startups to help Gift City so they can quickly three weeks, but some of the
many startups were looking to them park their funds at the change their bank details with Indian banks made certain
open a second bank account to Gift City branch of Axis Bank. It their buyers in the US and are exemptions, and discussions
diversify their funds. also opens doors for further able to start receiving new are on for this issue specifically.
HSBC assembled a team of business engagements with money,” an investor with a rev- Banks have also agreed to con-
two dozen executives across these entities in future. A few enue financing firm said, ask- duct Know Your Customer
markets to work on processing companies in B2B e-commerce ing to remain anonymous. (KYC) over zoom calls,” this
documents, a person familiar marketplace, large online car Most of the impacted start- investor said. “This way, they
with the move said. marketplace, agri/ food tech ups provide software-as-a-Ser- can start receiving money in
“We started getting calls on space have evinced interest in vice (SaaS) to US-based clients two days while the documenta-
Friday morning from many VC moving their funds.” or have foreign vendors for tion process can continue in
and PE funds which we already HSBC assembled a team of two Spokespeople for Gift City, which they require a US bank parallel,” he added.
bank with for their portfolio dozen executives. BLOOMBERG Kotak, HSBC and ICICI Bank account. Startups backed by Most big US banks require
companies and have been did not respond to requests for Y-Combinator also are physical presence and take
working round the clock since to open accounts within 24 to comments on Sunday. required to incorporate in the anywhere close to a week to
then,” the executive added. 48 hours, provided documents Three investors in startups US and open a US bank account open new bank accounts.
The team includes execu- are in place. confirmed that some other —typically in SVB—to receive Gift City is regulated by the
tives with expertise in KYC Ganesh Sankaran, group Indian banks, such as Kotak investor money. International Financial Servi-
norms, awareness of minimum executive and head of whole- Mahindra Bank and ICICI The biggest challenge to ces Centre Authority and
requirements for opening an sale banking coverage group at Bank, were also helping open opening a bank account in Gift allows companies to move
account, and expertise over Axis Bank, said that the lender alternative bank accounts in City is a Permanent Account funds in foreign currency,
Gift City norms. Banks are able saw an opportunity to help Gift City. Number (PAN), a second inves- including the dollar.
LIVEMINT.COM
m THE MONDAY QUIZ
1) WHICH Infosys
executive is joining Tech
Mahindra to replace CP
Gurnani as MD-CEO?
3) WHICH Tata group company filed for IPO last
week?
4) WHAT is the
name of Salesforce’s
new generative
AI tool?
GLOSSARY
Backhaul: In telecom par-
lance, backhaul refers to
the non-consumer facing
part of a network. Back-
haul is typically a high
capacity, high speed and
high bandwidth network
line, which links the core
infrastructure of a connec-
tion with the ‘access
points’—nodes that con-
nect a telecom network to
the end-user. Satellite-
based internet service pro-
viders are expected to tar-
get the growing need for
increased telecom back-
haul, going forward.
Photolithography: This
is the process that is used
by chip manufacturers to
make integrated circuit
‘chips’. Called so because
of the use of a light source,
photolithography
requires the use of ultravi-
olet light, and is shone on
a layer through a mask
with specific microscopic
Technologies 4) Einstein GPT 5) Twitter
1) Mohit Joshi 2) Silicon Valley Bank 3) Tata
THE MONDAY QUIZ ANSWERS:
2) WHICH US bank
became the second big-
gest case of banking insol-
vency in the US last week?
5) WHICH social media
platform faced its fifth
successive outage of
2023 last week?
etching. It is among the
most critical parts of chip
manufacturing.
PE ratio: Price-to-earn-
ings ratio denotes the ratio
between the market price
of a company’s share, and
the earnings per share as
reported in the balance
sheet. The PE ratio is typi-
cally used by investors as a
clear metric to understand
how a company and its
shares are performing. It
offers a guidance on how
the stock market values
the company, in compari-
son with the company’s
own estimated valuation.
A high PE ratio refers to an
overvalued company,
while a low one denotes an
undervalued one.
Gyroscope: A gyroscope
in a consumer gadget like
smartphones is a sensor
typically used to under-
stand the orientation of the
device. It gauges whether a
device is being held verti-
cally or horizontally, and
enables a host of tasks and
features such as compass
readings, GPS navigation
and motion gaming.
DEALS, TECH & STARTUPS MoNDay, 13 March 2023
New Delhi 07
Crypto exchanges may To fill PUBG void,
local studios set to
face heat of PMLA rule launch own titles
Abhijit Ahaskar
abhijit.ahaskar@livemint.com
NEW DELHI
Exchanges will have to monitor transactions, raising compliance burden
A
s the Indian govern-
ment banned the
Abhijit Ahaskar mobile game Player-
abhijit.ahaskar@livemint.com Unknown’s Battlegrounds
NEw DElhI Mobile (PUBG Mobile) in
2020, Pune-based Super-
T
he finance ministry’s decision to Gaming got to work on a similar
bring virtual digital assets game called Indus Battle Roy- The ‘battle royale’ genre
(VDAs) under the Prevention of ale. With a projected release requires a lot more investment
Money Laundering Act (PMLA) date sometime this year, Indus in game development. ISTOCK
could become a double-edged Battle Royale aims to fill the
sword for crypto exchanges. void left by the bans on PUBG versities abroad,” said Roby
Experts said the step will increase their Mobile and its subsequent John, CEO and co-founder of
compliance burden, and may also lead to India version Battlegrounds SuperGaming.
loss of customers since they will have to Mobile India. The change has also been
monitor transactions, maintain records Unlike games produced in driven by global game publish-
and report suspicious activities, similar to India, the ‘battle royale’ genre ers entering India over the past
what banks do. requires a lot more investment few years. For instance, French
VDAs, which include assets like crypto- in game development, which game publisher Ubisoft has
currencies and non-fungible tokens Indian firms have often shied developed parts of Prince of
(NFTs), have been losing value for almost a away from. SuperGaming isn’t Persia: Sands of Time (Remake)
year due to the closure of major exchanges the only firm attempting this from its studios in Pune. Other
amid recessionary either. Gaming unicorn Mobile big firms like Rockstar Games
conditions glo- Cryptocurrencies and NFTs have been losing value due to the closure of major Premier League’s (MPL) May- have also set up India units.
bally. This has hit exchanges amid recessionary conditions globally. BLOOMBERG hem Studios is set to release a John attributed the limited
trading volumes, similar game called Under- game development work in
directly affecting the exchanges’ revenues that were facilitating transactions earlier actions, etc. to the Financial Intelligence world Gang Wars for Android India to the lack of exposure as
as they earn commissions from customers’ had to necessarily ensure that anonymity is Unit - India (FIU-IND) of the finance minis- users in May. a large section of people in
trades. Additional reporting metrics could maintained. “Now they will have to bring try. But, post the 7 March notification, they And such investments are set India grew up without access to
further dent their customer base. systems to report suspicious activity. will face rules similar to those of banks and to grow, leading to the develop- PCs or consoles. “They were
“Firms who were already going down Because they want to avoid liability, they other financial institutions. ment of what is very good at engi-
that path and trying to be compliant will could possibly end up losing customers to To be sure, about $23.8 billion worth of called ‘AAA games’ neering but never
not see much of a difference. This industry overseas exchanges,” he added. cryptos were moved via illicit addresses in the industry — played enough AAA
will need to invest further for compliance. “VDAs have been notified by the govern- worldwide through various exchanges in games which rival games to build it
Since it is also financial data, they will also ment as a ‘Reporting Entity’ under PMLA. 2022. This was 68% more than in 2021, as movies in terms of the invest- from scratch,” he said.
have to adhere to data regime per a January report by block- ments needed to make them. “The cross-section between
under the SPDI (Sensitive Per- PITCH quEErEd chain researcher Chainalysis. Indian studios like Lakshya Digi- art and engineering is where a lot
sonal Data or Information) Crypto exchanges, on their tal have done artwork for many of talent is lacking. There are spe-
Rules of 2011 and also the data CryPTo exchanges THE industry will $23.8 bn worth of part, have welcomed the AAA games, like Just Cause 3, cialized roles like technical artists
protection laws as and when it earn commissions
from customers’
need to invest in the
prescribed record-
cryptos were moved
via illicit addresses
move. “This notification will Elden Ring, and Metal Gear where talent is missing. India has
comes,” said Abhishek Mal- trades, and revenues keeping, and through various help establish greater trans- Solid, but most of the actual got great artists and great engi-
hotra, managing partner at will be dented monitoring exchanges in 2022 parency in the ecosystem and game development work is done neers but not enough people
TMT Law Practice. this is a welcome positive step at studios in North America, who are working in between,”
To be sure, industry experts in strengthening the Indian Europe, South Korea, and Japan. said Oliver Jones, co-founder
expect a similar reaction from customers as This means the prescribed reporting, VDA sector. It will also help establish a “What has changed is that and CEO of Bombay Play.
was seen last year after tax deduction at record-keeping, and monitoring obliga- common standard for all VDA platforms,” gaming is now seen as a career. Firms like SuperGaming,
source (TDS) was imposed on crypto deals. tions would also apply to them. Without said Ashish Singhal, co-founder and chief Many of the people in India however, have greater aspira-
Top exchanges saw customers shift to this, VDAs did not have a statutory basis for executive officer at CoinSwitch. who are building these games tions. The company has also
global exchanges since they were based FIU-IND reporting,” said Anu Tiwari, part- Sumit Gupta, co-founder and CEO at have gone and worked for some developed shooter games like
overseas and weren’t deducting taxes auto- ner at Cyril Amarchand Mangaldas. CoinDCX concurred, and said the step will of the global gaming compa- Mask Gun, which has bagged
matically. Essentially, crypto exchanges weren’t ensure “strong and transparent players nies and studied game develop- over 67 million players over its
Malhotra warned that local exchanges legally required to report suspicious trans- operate in the industry, and comply.” ment in some of the best uni- lifetime.
08 MoNDay, 13 March 2023
New Delhi GLOBAL LIVEMINT.COM

m MINT SHORTS
China retains Yi as central bank
Oil giant Saudi Aramco makes
historic $161 bn profit in 2022
governor in surprise move
China retained several of its top economic officials in a surprise
move that points to policy stability, as Beijing looks to boost
investor confidence and steer the nation’s post-Covid recovery.
Yi Gang, 65, will remain as governor of the People’s Bank of
China, while Liu Kun and Wang Wentao will also stay on as
finance and commerce ministers, respectively. BLOOMBERG

The monster profit by the firm came off the back of energy prices rising after Russia launched war on Ukraine
Pence: History will hold Trump
‘accountable’ for Capitol attack Associated Press Prince Mohammed, including his
AP
feedback@livemi t.com planned $500 billion futuristic desert
DUBAI, UnITED ArAB EmIrATEs city project called Neom.
Those revenues also can go into

O
il giant Saudi Aramco
reported Sunday earn-
ing $161 billion last
year, claiming the
highest-ever recorded
annual profit by a publicly listed com-
pany and drawing immediate criti-
cism from activists.
The monster profit by the firm,
known formally as the Saudi Arabian
Washington: Former US vice president Mike Pence said Oil Co., came off the back of energy
Saturday that history would hold former president Donald prices rising after Russia launched its
Trump “accountable” for his role in the 2021 attack on the war on Ukraine in February 2022,
US Capitol, US media reported. The remarks are likely to with sanctions limiting the sale of
widen the rift between the former running mates, who have Moscow’s oil and natural gas in West-
been at loggerheads since Pence refused to go along with ern markets.
Trump’s efforts to overturn the 2020 election results and Aramco also hopes to increase its
remain in power. AFP production to take advantage of mar-
ket demand as China reenters the
global market after lifting its corona-
Saudi wealth fund starts airline virus restrictions. That could raise the
billions needed to pay for Crown
headed by former Etihad CEO Prince Mohammed bin Salman’s
Saudi Arabia’s wealth fund has named former Etihad Aviation plans to develop futuristic cityscapes
Group boss Tony Douglas chief executive officer of a new to pivot Saudi Arabia away from oil.
national airline, as the country looks to boost tourism and diver- However, those plans come despite
sify the economy from oil. Riyadh Air, as the new airline is called, growing international concerns over
will be based in the Saudi capital Riyadh and aims to connect the the burning of fossil fuels accelerat-
country to more than 100 destinations worldwide, according to ing climate change. Meanwhile,
a statement. It will be wholly-owned by the Public Investment higher energy prices already have
Fund, also known as PIF. BLOOMBERG strained relations between Riyadh
and Washington, as well as driven up
inflation worldwide.
UK is said to ban TikTok from “Given that we anticipate oil and
gas will remain essential for the fore-
government devices seeable future, the risks of underin-
The UK will ban TikTok from government devices over concerns vestment in our industry are real —
about the security, a person familiar with the plans said. Western including contributing to higher
governments have become increasingly worried about TikTok’s energy prices,” Saudi Aramco CEO
potential national security risk, in light of concerns around its and President Amin H Nasser said in
parent company, ByteDance Ltd. The US Congress last year a statement.
restricted the app on government devices and European Com- Profits rose 46.5% when compared
mission employees were told to delete it by March 15. PM Rishi to the company’s 2021 results of $110
Sunak’s office declined to comment on the UK ban, which was billion. It earned $49 billion in 2020
reported earlier by the Times of London. BLOOMBERG when the world faced the worst of the
Given that we anticipate oil and gas will remain essential for the foreseeable future, the risks of underinvestment in our
industry are real — including contributing to higher energy prices,” CEO Amin Nasser said in a statement.
coronavirus pandemic lockdown,
travel disruptions and oil prices
briefly going negative.
Aramco put its crude production at
around 11.5 million barrels a day in
2022 and said it hoped to reach 13
million barrels a day by 2027.
To boost that production, it plans
to spend as much as $55 billion this
year on capital projects.
Aramco also declared a dividend of
$19.5 billion for the fourth quarter of
2022, to be paid in the first quarter of
this year.
Aramco’s results, viewed as a bell-
wether for the global energy market,
mirror the huge profits seen at those
of UK energy giant BP,America’s
Exxon Mobil, Shell and others in
2022. But the sheer size of the $161
billion profit overshadowed even its
own previous results, as well as
records by Apple, Vodafone and the
U.S. Federal National Mortgage Asso-
ciation, or Fannie Mae.
Benchmark Brent crude oil now
trades around $82 a barrel, though
prices had reached over $120 a barrel
back in June. Aramco, whose for-
tunes hinge on global energy prices,
announced a record $42.4 billion
profit in the third quarter of 2022 off
the back of that price spike.
Those high prices have further
strained ties between the kingdom
and the United States, traditionally a
security guarantor among the Gulf
Arab states amid tensions with Iran.
Before the midterm elections in
November, the kingdom said the
REUTERS
Biden administration sought to delay
a decision by OPEC and allies includ-
ing Russia to cut production that
could have kept gasoline prices lower
for voters — making public the typi-
cally behind-the-scenes negotiations
common in the region.
President Joe Biden had warned
the kingdom that “there’s going to be
some consequences for what they’ve
done” in terms of oil prices.
However, those consequences
have yet to be seen as Saudi Arabia
and Iran went to China to strike a dip-
lomatic deal Friday. US gasoline pri-
ces now stand on average at $3.47 a
gallon, down just about a dollar from
last year.
For the kingdom, higher crude oil
prices can help fuel the dreams of
Riyadh Air, a new airline announced
Sunday by Prince Mohammed that
will be under the kingdom’s Public
Investment Fund and plans to fly to
over 100 destinations by 2030. The
Wall Street Journal, citing anony-
mous sources, reported Saudi Arabia
may purchase up to $35 billion worth
of planes from Boeing Co.
However, they also run against the
fears of activists over climate change,
particularly as the United Nations’
COP28 climate talks will begin this
November in the neighboring United
Arab Emirates.
Saudi Arabia has pledged to have
net-zero carbon emissions by 2060,
like China and Russia, though its
plans to reach that goal remain
unclear. Aramco’s earnings report
noted it started a $1.5 billion Sustaina-
bility Fund in October and plans a
carbon-capture-and-storage facility
as well.
Amnesty International’s secretary-
general, Agnès Callamard, criticized
Aramco’s annual profit coming amid
global concerns about climate
change.
“It is shocking for a company to
make a profit of more than $161 billion
in a single year through the sale of
fossil fuel — the single largest driver
of the climate crisis,” she said in a
statement. “It is all the more shocking
because this surplus was amassed
during a global cost-of-living crisis
and aided by the increase in energy
prices resulting from Russia’s war of
aggression against Ukraine.”
Callamard also noted that Saudi
Arabia remains one of the world’s top
executioners while also remaining
locked in a yearslong war in Yemen
and cracking down on dissent.

BBC boss will not step down despite backlash

AFP As a result, the longest-run- delivering that.
feedback@livemint.com ning football television pro- He added: “To be clear, suc-
LOnDOn gramme in the world was aired cess for me is Gary gets back on
for the first time without a pre- air and together we are giving

T
he BBC’s director gen- senter, pundits or even com- to the audiences that world
eral Tim Davie said he mentary in a shortened class sports coverage which, as
will not resign after the 20-minute highlights package I say, I’m sorry we haven’t been
publicly-funded broadcaster’s of six matches from the English able to deliver today.”
sport service was decimated on top-flight. British Prime Minister Rishi
Saturday by a backlash to Gary Weekend pre- Sunak said he
Lineker’s removal as Match of view show Foot- Gary Lineker was hoped the stand-
the Day host. ball Focus and forced to “step off can be
“Everyone wants to calmly results pro- back” from his “resolved in a
resolve the situation,” Davie gramme Final duties after timely manner.”
said in a BBC interview. Score were also Lineker is a
accusing the UK
Lineker was forced to “step Tim Davie, BBC’s director pulled from the freelance broad-
back” from his duties present- general. schedule, while govt of using caster for the
RISE TO THE
BLOOMBERG
ing the flagship Premier BBC Radio Nazi-era rhetoric BBC, not a perma-
League highlights show after However, the decision 5Live’s coverage nent member of
accusing the UK government of caused chaos to scheduled was disrupted. staff, and is not

CHALLENGE! using Nazi-era rhetoric in tack-

ling illegal immigration.
The BBC said on Friday that
England’s fourth highest goal-
scorer of all-time had breached
Play and win guidelines on impartiality and
the corporation would seek “an
agreed and clear position on his
use of social media” before an
on-screen return.
sports programming across the
BBC’s television and radio out-
put.
Former England strikers Ian
Wright and Alan Shearer were
among the pundits who
refused to take up their usual
roles on Match of the Day, fol-
lowed by the programme’s
commentators.
When asked if he should responsible for news or politi-
resign over the crisis, Davie cal content so does not need to
replied: “Absolutely not.” adhere to the same strict rules
“I think that my job is to on impartiality.
serve licence-fee payers and The former Leicester striker
deliver a BBC that is really was in attendance at the King
focused on world-class impar- Power Stadium to watch his
tial landmark output, and I look home town club lose 3-1 to
forward to us resolving this sit- Chelsea, but did not speak to
uation and looking forward to reporters.

subscription
Volkswagen joins global e-car price war
Download Now
AFP hotly contested market for bat-
*Exclusively on the Mint app feedback@livemint.com tery-powered vehicles, even if
FrAnkFUrT, GErmAny that means profit margins take
a hit for a while.

G
erman giant Volks-
wagen is set to follow
Tesla’s lead with a high-
profile price drop as the battle
for global dominance in the
electric car segment intensifies,
and local challengers race
ahead in key market China.
A new version of Volks-
wagen’s flagship ID.3 electric
car model will go on sale from
the end of March for just under
40,000 euros ($42,000), the
VW brand announced this
week.
That is a 3,000-euro mark-
down from the current ID.3
Scan to know more
price tag, putting it on par with
US rival Tesla’s popular Model
Y. Industry insiders see the
move as a direct response to
several rounds of price-cutting
by the Elon Musk-owned com-
pany in recent months, includ-
ing discounts of up to 20 per-
A new version of Volkswagen’s flagship ID.3 electric car model
will go on sale from the end of March for under $42,000. BLOOMBERG
cent in Europe and the United
States.
In Germany, Tesla’s sales
soared by more than 900%
year-on-year in January as a
result, making it the top-selling
e-car in the country that
month.
Although the 10-brand VW
group was Europe’s leading
e-car manufacturer in 2022
with 352,000 vehicles sold,
Tesla’s audacious markdowns
have forced the German firm’s
hand, said industry analyst Fer-
dinand Dudenhoeffer.
“Volkswagen sees how big
the threat is from Tesla,” he
told AFP.
The automaker will have “no
choice” but to enter “a price
war” to defend its place in the
VW group CEO Oliver
Blume has so far ruled out a
general price drop on all e-cars,
but the topic is bound to come
up when the group presents its
2022 financial results on Tues-
day.
But Musk is not VW’s only
headache. In China, the world’s
largest car market, the indus-
try’s electrification has shifted
into higher gear and VW is rap-
idly falling behind domestic
competitors.
The Asian giant currently
accounts for some 40% of VW
group sales, mostly vehicles
with traditional internal com-
bustion engines, giving it a
market share in China of 16%.
But in the electric car seg-
ment, the Volkswagen brand
has eked out a market share of
just 2.4% , trailing Tesla at 7.8%
and China’s BYD at 16%.
LIVEMINT.COM NEWS WRAP MoNDay, 13 March 2023
New Delhi 09

TWEETS & QUOTES

Kavitha Krishnan Ashima Goyal Abhay Singhal
Dipali Goenka Senior analyst, manager Member, RBI MPC Co-founder, InMobi Group
CEO & Jt MD, Welspun research, Morningstar India Govt supply-side The SVB collapse will have a
If there’s a recession, Despite witnessing outflows action coordinated short term impact on funding
people will not compro- across most markets, gold ETFs with a flexible infla- of the startups. All the new
mise on their kids’ in India witnessed inflows in tion targeting regime funding is likely going to be
demands. The kids’ oppor- February. This was largely has kept Indian infla- paused because venture
tunity is huge... The backed by a small correction in tion rates lower than capitalists will opt for saving
demand never tapers off. local gold prices... other countries... current investments.

Tax mop-up likely ROAD WARRIORS ‘Chemical demand

to fall short: Official may hit $1,000 bn’

T I
he government may not achieve a revised ndia is likely to account for more than a fifth of
tax collection target of ₹30.43 trillion for incremental global consumption for
the current financial year, a top official chemicals over the next two decades as
said. Revised estimate was raised steeply by over domestic demand is projected to rise to $1,000
10% from the budget estimate in the FY24 billion by 2040, McKinsey said in a report.
budget presented last month, the official said. In the report titled ‘India: The next chemicals
The revised estimates (RE) for the current manufacturing hub’, McKinsey said the
fiscal pegged gross tax revenues at ₹30.43 country’s chemical industry has been a global
trillion, higher than the budget estimates of outperformer in demand growth and
₹27.57 trillion. On the direct tax side, the official shareholder wealth creation over the last
said, “The RE was quite steep. we are expecting a decade. “It now stands poised to play an
shortfall. The net collections could be between increasingly dominant role across both
₹15 and 15.5 trillion.”In the current fiscal (2022- consumption and manufacturing in the global
23), the revenues from direct tax (which arena,” it said. The sector is projected to grow at
includes income and corporate taxes) are 11-12% during 2021-27 and 7-10% during 2027-
projected to grow by over 17% at ₹16.50 trillion 40—tripling its global market share by 2040.
compared to 2021-22 fiscal when the collection Chemicals find wide usage in human lives—
was ₹14.20 trillion. In the current fiscal, the from detergents to clothing and fragrances,
revenue from corporate tax is expected to come from insecticides to paints, and
in at ₹8.35 trillion. This is projected to rise by telecommunication to music and media. PTI
10.4% to over ₹9.22 trillion in the next fiscal. PTI

Women riding bikes arrive to cheer participants of the Women’s Day Saree Run 2023 in Chandigarh on Sunday. PTI

Oppn for debate on Adani, all Varun Beverages is Pepsico’s largest franchise
bottler in India. AP
Jindal Stainless MD Abhyuday Jindal.

JSL, ReNew project key issues as session resumes VBL hopeful of soft
drink mkt growth
to start by 2024
T
he Indian soft drink market is expected to

T
he 300 MW hybrid project in
partnership with ReNew is expected to
commence operation in the next 18
months, Jindal Stainless managing director
Abhyuday Jindal has said.
In December 2022, Jindal Stainless Ltd (JSL)
partnered with ReNew to develop the
proposed 300 MW hybrid energy project.
When asked about the timeline of the
see “significant growth” as consumption is
Focus of session, however, will remain on the passage of the all-important Finance Bill. anticipated to increase steadily, which will
deliver sustainable and healthy volume growth
across all product categories, said Varun
Saubhadra Chatterji, The second half of the session starts from 13 ministries. Beverages Ltd (VBL), PepsiCo’s largest franchise
Smriti Kak Ramachandran March and will end on 6 April. Apart from the budget related business, which bottler. This would be driven by factors such as
letters@hindustantimes.com In the meeting, various leaders demanded they are constitutional obligation, the government has shifting population demographics, the rising
should be allowed to raise all issues concerning 35 legislations pending before Parliament. spending power of young consumers,
the people and mention Adani group in the Congress president and Rajya Sabha’s leader of accelerated urbanization, and growing rural

project, Jindal said, “We (JSL and ReNew) are
on track on the pact. That project is 300 MW.
Land acquisition has already been completed
for the project”.
The project will start in the next one and a
half years’ time, he said.
On the company’s hydrogen project, the MD
said it is expected to start in July this year.
In August 2022, the country’s largest
stainless steel player partnered with Hygenco
India Private Ltd to set up a green hydrogen
plant.
“These green initiatives are part of our
mission to switch from a thermal energy-
intensive manufacturing setup to renewable
energy alternatives,” he said.
A
day before the second half of the Par- House. CPI leader Binoy Viswam maintained that the Opposition Mallikarjun Kharge met Dhank- consumption.
liament session starts, the Congress they should be har and later The company is in the process of further
and other Opposition parties allowed to mention announced the expanding its capacities to meet the higher
demanded discussion on all raging Adani group in the The Hindenburg’s report on the Opposition parties demand expectations, said VBL in its latest
issues even as Rajya Sabha Chairman House. Adani group had rocked the first half want discussion on annual report. “Its distribution model and on-
Jagdeep Dhankhar sought opinion of leaders on The financial sta-
two key issues: MPs should try to curb disruption tus of SBI and LIC in of the session with the Opposition “every burning issue
facing the nation”.
the-ground end-to-end infrastructure facilities
continue to be the key growth drivers and VBL
in House and whether any free flow of informa- respect to their demanding a JPC The US-based remains committed to extending it to newer
tion be allowed under the guise of Article 105. exposure in the short seller Hinden- areas and under-penetrated regions to further
Article 105 says, “Subject to the provisions of Adani group, the burg’s report on the boost its market presence,” it added. PTI
this constitution and the rules and standing alleged misuse of federal agencies, price rise Adani group had rocked the first half of the ses-
orders regulating the procedure of Parliament, including the steep hike in the cooking gas price sion with the Opposition demanding a joint par-
there shall be freedom of speech in Parliament.” would be some of the key issues for the Opposi- liamentary committee (JPC).
The article assumes importance as many Opposi-
tion leaders have cited this article to speak on the
tion. The focus of the session, however, will But Prime Minister Narendra Modi has hit back
remain on the passage of the all-important at the Opposition and said that 1.4 billion Indians
Govt to give funds
PTI Adani Group and other issues. Finance Bill and the demand for grants for all are his armour.
to agencies for GI

T
he government will provide financial
Godrej Locks aims assistance to eligible agencies for
Central body may regulate drug mfg undertaking initiatives for the promotion
to clock 24% growth of geographical indications (GIs) products.The
Department for Promotion of Industry and
has been sent for inter-ministerial Internal Trade (DPIIT) has issued operational

G
odrej Locks and Architectural Fittings is
looking at clocking ₹1,100 crore turnover
this fiscal, a 24% year-on-year growth, a
senior company official has said.
Talking to reporters in Panaji on Saturday,
Shyam Motwani, business head, Godrej Locks
and Architectural Fittings and Systems, said the
unprecedented success for the company was
due to a huge demand for digital locks and spurt
in residential real estate. “The unprecedented
success that we achieved is because there is a
huge digital trend witnessed in large metros and
there is a huge spurt in residential real estate,”
he added. He was speaking to media persons at
the backdrop of the second edition of The
CDSCO be empowered to regulate the
manufacture of drugs.
consultations.
However, the sale of drugs, cosmetics
and medical devices will continue to be
regulated by the respective state
governments, according to the revised
draft of the New Drugs, Medical Devices
and Cosmetics Bill 2023, which seeks to
replace the existing Drugs and Cosmetics
Act of 1940. Further, the provision of
taking permission to operate an e-
pharmacy has been removed and
replaced with the words—central
government may regulate, restrict or
AFP prohibit the sell, stocking, exhibiting or
offer for sale or distribution of any drug by
Government authorities have asked banks and
traders to adhere to the rules.
‘India won’t breach
guidelines for financial assistance for
undertaking the initiatives for the promotion
of GIs.
DPIIT is an arm of the commerce and
industry ministry which deals with
investments and intellectual property rights
(IPRs).
A GI, a kind of IPR, is primarily an
agricultural, natural or manufactured product
(handicraft and industrial goods) originating
from a definite geographical territory.
REUTERS Typically, such a name conveys an assurance of
quality and distinctiveness, which is essentially
attributable to the place of its origin. PTI

Russia oil price cap’

GeeVees, an award introduced by Godrej Locks
to recognize the best and upcoming talent in the
Architect and Interior Design community in the
country. Motwani said that the company would
be clocking around ₹1,100 crore turnover as of 31
March, which will be a growth of ₹270 crore
over the previous fiscal and roughly a 24%
T
he Centre has proposed that the
country’s apex drug regulatory
body, CDSCO, be empowered to
regulate the manufacture of drugs or
cosmetics, instead of the state drug
regulators as is the practice currently,
according to the revised draft of a bill that
online mode by notification—according
to the draft bill, a copy of which has been
accessed by PTI.
Sahyadri, French
I
The draft New Drugs, Medical Devices ndia will not breach western sanctions on
and Cosmetics Bill was placed in the
public domain in July last year, seeking
Russia including the price cap of $60 imposed
on purchases of oil from Moscow, according to Navy hold exercise
feedback from the stakeholders. PTI people familiar with the matter.

increase. PTI The government authorities have asked
banks and traders to adhere to the rules, the
people said, declining to be identified as the
information isn’t public. Indian officials have
Government opposes same-sex marriage in landmark hearing not gone on the record to say they will support
sanctions and the price cap imposed by the
Group of Seven nations on Russia.
I
ndian Navy’s guided missile frigate INS
Sahyadri joined two frontline warships of
France in carrying out a two-day maritime
partnership exercise in the Arabian Sea.
The exercise on 11 and 12 March witnessed a
wide spectrum of drills at sea including cross
deck landings, boarding exercises and

T
he government has opposed giving legal recognition to same-sex India had a detailed discussion with the US seamanship evolutions, Indian Navy officials
marriages in a landmark hearing as the Supreme Court is set to deliberate and other G-7 nations on the sidelines of the said on Sunday.
on various petitions seeking equality for the LGBTQ community in Group of 20 nations meeting recently and they The French Navy deployed Mistral class
proceedings starting Monday. seem satisfied with its dealings, one of the amphibious assault ship FS Dixmude and La
In its court filing, the central government has said that marriage is accepted people said. India and China have emerged as Fayette class frigate FS La Fayette in the
“statutorily, religiously and socially” only between a biological man and a the top buyers of Russian oil since its war in exercise.
biological woman. Any deviation from this accepted form can only be voted by Ukraine began more than a year ago. “The seamless conduct of the exercise
lawmakers and not ruled by courts, the affidavit argued. Spokespeople for the government didn’t reaffirmed the interoperability and high level of
The government has also stated that formal recognition of marriage also respond to text messages seeking comments cooperation between the two navies,” the Indian
affects related issues ranging from child adoption to inheritance rights, and it is on the issue outside of working hours. Navy said in a brief statement. INS Sahyadri is
pertinent for the issue to be debated by the legislature while considering all Over the past months, import-dependent fitted with state-of-the-art weapons and sensors,
views that could impact society. India has seized the opportunity presented by which makes her capable of detecting and
The outcome of the case, closely watched in countries like Thailand, Greece, discounted crude, becoming a key tool for neutralizing air, surface and sub-surface threats.
Japan and South Korea—where similar debates are gaining momentum—could Formal recognition of marriage affects related issues ranging from Prime Minister Narendra Modi’s bid to fight The ship is a part of Indian Navy’s Eastern Fleet
set a precedent around the world. BLOOMBERG child adoption to inheritance rights, the government said PTI energy inflation. BLOOMBERG based at Visakhapatnam. PTI
10 MoNDay, 13 March 2023
New Delhi LONG STORY LIVEMINT.COM

WHY INDIA’S KNITWEAR

CApITAl Is In doldRUMs
Tiruppur is being weighed down by multiple challenges. Will the latest crisis force the industry to change?

N. Madhavan
madhavan.n@livemint.com
CHeNNAi

U
ntil a fortnight ago, 27-year-
old D. Balaji was the produc-
tion in-charge of a medium-
sized hosiery unit in Tirup-
pur, earning ₹23,000 a
month. He is now driving a taxi. The
hosiery unit had to let him go after its busi-
ness plummeted in recent months. “I am
looking for another job but not sure when
I will find one,” says Balaji.
A keen observer will notice that Tirup-
pur, the knitwear capital of India, is in dis-
tress—the signs are very visible. Traffic in
the once-busy town is unusually light. The
trucks carting textile materials around the
town are conspicuous by their absence.
Most are parked at the town’s large truck
stand in the Royapuram area, where the
drivers pass time watching movies on
their phones.
“When things were good, we barely had
time to grab food. Today the problem we
face is that we do not have enough movies
to watch,” said one truck driver wryly. He
was not willing to reveal his name.
Shopkeepers, meanwhile, say footfall
has plunged as uncertainty over the future
has forced customers to tighten the purse
strings. Hundreds like Balaji have been
laid off, and are forced to seek other forms
of employment to make ends meet. The
mood is palpably grim.
The reason for the despondency is the
state of the knitwear sector, which is the
lifeline of the town. Tiruppur accounts for
55% of India’s ₹60,950 crore knitwear
exports (typically T-shirts and vests).
However, a sharp contraction in export
orders in the wake of the Russia-Ukraine
war, the impact of imports on domestic
demand, and volatile cotton prices have
left the industry struggling.
Capacity utilization has dropped by as
much as 60% and this has hit Tiruppur’s
micro, small and medium enterprises A worker readies machinery at a knitwear factory in Tiruppur. Rumours of attacks on north Indians has caused fear among migrant workers and threatens operations of mid- and small-size units in the textile town. N. MADHAVAN/MINT
(MSMEs), which comprise 90% of the
units in the sector. “Demand has been dull
in the last few months. Inflation in buyer
countries has forced people to prioritize new levy. “We understand that structural it did not even have a panchayat. Today, it mint
spending on fuel, food and meeting loan changes are important for an emerging is the headquarters of an eponymous dis- SHORT
STRONG THREAD
obligations. Clothes are not a priority right economy such as India, but it is important trict whose exports of ₹35,834 crore in STORY Tiruppur has weathered many a crisis and maintained pole position on
now,” explains K.M. Subramanian, presi- that these changes are implemented in a FY22 exceeded Coimbatore district’s the textile map of India.
dent, Tiruppur Exporters’ Association manner that does not increase the cost ₹23,654 crore, according to ministry of
(TEA). significantly,” says Kumar Duraiswamy, commerce and industry data. WHAT WHY TIRUPPUR IS INDIA'S KNITWEAR CAPITAL
Year All India Tiruppur Share (in %)
Thousands of micro entrepreneurs an MSME entrepreneur, who runs Eastern However, the model has its disadvanta-
have, consequently, shut their businesses. Global Clothing, noting that patchy ges as well. As the clusters are made up of A sharp fall in export orders in 2017-18 51,526 24,060 47
Small units have either closed for want of implementation added to the pain. MSME units, their ability to face a crisis is the wake of the Russia-Ukraine
orders or have leased their facilities to Covid, and the nationwide lockdown limited. They are often at the mercy of the war, the impact of imports on 2018-19 54,692 27,650 51
bravehearts who wanted additional that was imposed almost overnight, were banking system, which has changed for domestic demand, and volatile
capacity. Medium-sized businesses, another huge blow. It created simultaneous the worse over time. “Earlier, the bank cotton prices have left India’s 2019-20 53,199 27,280 51
meanwhile, have downsized their opera- supply-side and demand-side challenges. manager had discretionary powers to knitwear capital reeling.
2020-21 46,890 24,750 53
tions and are struggling to meet repay- Knitwear units were shut for months as allow additional limits when things got
ment obligations. On top of all this is a migrant workers left for their homes. Even tough. The manager allowed it based on 2021-22 60,950 33,525 55
labour management challenge—rumours before the sector could recover fully from past performance. Today, systems run AND Knitwear exports (in  crore)
of attacks on north Indians have caused the impact of the pandemic, prices of cot- everything and local managers have no
fear among migrant workers. An exodus of ton, the industry’s core raw material, spiked say, complains S. Govindappan, vice-pres- Capacity utilization has dropped
by as much as 60% and this has THE CLUSTER MODEL 10,000
migrants will bring the industry to its to over ₹1 lakh a candy (356 kg) before mod- ident, South India Hosiery Manufacturers’
knees. erating to a reasonable ₹65,000. Association. As a result, MSMEs are in hit Tiruppur’s micro, small and Number of units
financial stress. His angst stems from medium enterprises, which
comprise 90% of the units in the 7,300
Crisis-prone seCtor UniqUe strUCtUre experience. Caught in a similar situation
sector.
T iruppur is no stranger to economic
distress. In the last 15 years alone, the B ut after every crisis, Tiruppur has
managed to bounce back. Shanmu-
textile town has endured seven major cri- gham attributes this to the town’s unique
a few years ago, he shut Gitanjali Knit Gar-
ments, his business, sold his assets, and
paid off his debts to avoid being “named 900
1,150

ses. “The 2008 global financial crisis was cluster model. It has very few integrated and shamed” by the banking system. SO 600
790
a double whammy. We faced demand units and lots of clusters focusing on par-
contraction as well as a sharp appreciation ticular activities. According to TEA data, UnpreCedented Crisis The crisis has forced exporters to 360
re-evaluate their business model.
in the value of the rupee against the dollar. there are 1,150 knitting, 360 dyeing, 50
That hurt our revenues badly,” recalls bleaching and 900 units in printing oper-
Raja M. Shanmugham, chairman, Warsaw ations. In addition, there are 600 embroi-
E vents triggered by the Russia-Ukraine
war have left Tiruppur’s knitwear sec-
tor facing a series of challenges today. First
They are now looking at a new
product mix, value-added
50
Bleaching Dyeing Embroidery Compacting Printing Knitting Garment Other ancillary
& calendering making units
Group of Companies and former Presi- dery units, 790 involved in compacting of all, the fall in market appetite has been services, and green labelling
Source: TEA
dent, TEA. and calendering and 7,300 making gar- unprecedented. “Massive pent-up demand backed by wind and solar power.
SARVESH KUMAR SHARMA/MINT
As the sector recovered, in January 2011 ments. “The advantage of this cluster post covid suddenly dropped and the pen-
a Madras high court order overnight shut model is that you do not have to invest dulum has swung the other way. Orders
all the 752 dyeing units in the town due to heavily to set up an integrated unit and have evaporated,” laments Shanmugham. who is also a joint secretary of the TEA. MMF to account for 30% of our exports by option to ensure that existing clusters do
large-scale pollution of the Noyyal river, you can outsource most operations,” says Supply chain disruptions during covid Also, competition in the export market is 2025 from the current 5%.” Almost 70% of not suffer,” he adds.
which flows through the town. The court TEA’s Sakthivel. Low capital costs help meant brands were low on stocks. Once intensifying. Bangladesh, Vietnam, Cam- the world’s export basket already com- Green labelling is another focus area.
stipulated that only units with a zero liq- the units weather crises better. economies reopened, they placed large bodia, Myanmar and Pakistan benefit from prises MMF-based garments. A shift to “Gone are the days when the knitwear sec-
uid discharge (ZLD) facility could operate. This model also fuels entrepreneurship. orders to replenish their stocks. The Rus- lower import duties in developed markets. MMF—using polyester or viscose staple tor in Tiruppur was a polluter. Today, our
“It was a body blow and many thought it “In Tiruppur, yesterday’s labour is today’s sia-Ukraine war ended that dream run. China has a huge economies-of-scale fibre as raw material—would also require operations are entirely sustainable,” says
would be the end of Tiruppur, but we owner,” says Shanmugham. With a little The war sent inflation soaring. The cost of advantage. In difficult times, buyers prefer modernising machinery, and this calls for Dyers Association’s Gandhirajan. The
managed to recover,” investment, anyone can fuel, food, and loans rose and people to source at the lowest cost and Indian a significant investment. dyeing units save 130
says Atul P. Gandhira- become an entrepreneur began to keep expenses on a tight leash, exporters find it difficult to match that. TEA has sought a new million litres of water
jan, president, Dyers Tiruppur is no stranger to here, he explains. In a with clothes taking a back seat. Brands, As if these challenges are not enough, textile upgradation fund The latest crisis has seen every day as 98% of the
Association of Tirupur. economic distress. In the last way, he is speaking about thus, were suddenly left with an inventory knitwear players are suddenly fighting to scheme from the govern- thousands of micro and small water is reused. “We
Only 360 units opted to himself. Hailing from a pile-up and drastically cut fresh orders. prevent an exodus of migrants from Tir- ment. have repented for our
have a ZLD facility and 15 years, it has endured seven farming family, Shanmu- According to TEA data, between August uppur. This follows the viral spread of fake Exporters would also entrepreneurs shut shop. mistakes and invested to
they took 18 months to major crises, including the gham is a first-generation and December 2022, the month-on- news on social media about large-scale like to offer value-added Medium-sized businesses, ensure sustainable oper-
set it up. During this entrepreneur who started month decline in exports was between 6% attacks on north Indians by locals for services. “What we are ations,” he adds.
period, knitwear makers 2008 global financial crisis off in 1989 with an invest- and 38%. This is a far cry from June, when stealing their jobs. Quick action by the running today is a glori- meanwhile, have downsized That apart, the entre-
had to send their fabrics ment of ₹5 lakh in a overseas shipments surged 194%. Tamil Nadu government and industry fied tailoring shop. China preneurs have bet big on
as far away as Surat, and the covid pandemic. 16-machine garment There is more. In an unprecedented appears to have calmed nerves. The textile and Vietnam have set up their operations wind and solar power.
Kolkata, New Delhi and stitching unit. Today, his development, domestic demand has also sector in Tiruppur employs over 200,000 design studios and offer They cumulatively gen-
Ahmedabad to be dyed. “This significantly Warsaw Group is a fully integrated setup taken a beating. Manufacturers blame this migrants and they are critical to keep buyers design options that buyers pick up erate 2,250 MW of renewable power. This
added to our cost and production time,” with ₹350 crore in revenue. TEA president on imports from Bangladesh. “The landed operations running. “Social compliance from. By doing so they have become pre- is far more than the entire district’s power
says S. Sakthivel, executive secretary, Subramanian’s story is not very different. It cost of a banian (vest) from Bangladesh is among big brands is very strict and such ferred suppliers,” says Duraiswamy. needs of 650 MW. A green tag will give
TEA. is not surprising then, that old money—tra- ₹10 lower than those sold by domestic reports hurt our reputation,” says a wor- While Tiruppur’s unique cluster units in Tiruppur a competitive advantage
Then came demonetisation in 2016, ditionally rich families—does not have manufacturers,” says Govindappan. ried Sakthivel. model has delivered, there is an increas- and help them get a better price from ESG
which proved to be disastrous for Tirup- much of a presence in the town. Exporters from the neighbouring country ing realization that setting up composite conscious buyers.
pur’s cash-dependent units and brought Even as a few entrepreneurs exit the import fabric from India at zero import Belated Change? units (with all the processes under one In the meantime, the government of
them to their knees. business every year due to difficult market
The following year, more distress fol- conditions, many more enter and it in the
lowed with the introduction of the Goods spirit of entrepreneurship that has kept
duty and then send finished goods, he
adds. Post the free trade agreement with
Bangladesh, a countervailing duty of 12%
W ill the latest crisis, force the knit-
wear sector to undergo a catharsis
and emerge stronger? The good news is
roof) can reduce costs and help exporters India has made a grand announcement
compete globally. “We cannot shy away that it would like to create 75 Tiruppurs
from this option anymore,” says Ahill S. across the country. Perhaps its energies
and Service Tax (GST). Scores of tiny, the town going, says Subramanian. Many was levied on import of finished textiles. exporters are taking a belated but hard look Rathinasamy, president, Knit Cloth Man- would be better spent helping India’s
informal, cash-based units saw their reve- also attribute the town’s growth to this “This was removed when GST was imple- at their future. “We want to focus more on ufacturers’ Association, and a 50-year knitwear capital transform itself to face
nues dry up, while others struggled to for- model. Five decades ago, Tiruppur was mented, and in the last five years, imports man-made fibres (MMF) and technical tex- veteran of the industry. “We can look at a today’s economic realities and achieve its
malize their businesses to comply with the just a small village in Coimbatore district; have surged 600%,” says Duraiswamy, tiles,” says Subramanian, adding, “We want co-operative or a cluster integration full potential.
LIVEMINT.COM
New fund houses galore: Should
you make the investment or skip?
Brokerages, portfolio management service firms and fintechs have ventured into the mutual funds space
Jash Kriplani
jash.kriplani@livemint.com
O
ne of India’s largest
financial services group,
Bajaj Finserv, is the latest
entrant in the mutual
fund space, where about
40 fund houses operate. The Pune-
based company got the Securities and
Exchange Board of India’s (Sebi) nod to
start mutual fund operations on 1 March.
The ₹39-trillion mutual fund industry
has seen a lot of interest, of late, with enti-
ties such as fintechs, discount brokers
and portfolio management service (PMS)
firms vying for licences to operate funds.
Thus far, the track record of an MF
scheme has been the USP of a fund house
or fund manager; but now, innovative
products as well as new approaches are
drawing investors. So, here are some
points to ponder upon when considering
a new fund house:
INveStmeNt reCord
MF distributors say investors may con-
sider schemes of new fund houses, but
should first check the track record of the
fund managers, especially if the funds
are going to be actively-managed.
“There is no issue with making some
allocation with a new fund house, as
long as the people running the fund
house come with a strong track-record
and experience in the fund manage-
ment industry,” says Anup Bhaiya,
founder and managing director of
Money Honey Financial Services.
Of the fund houses that have already
got Sebi’s in-principle approval to
launch MF businesses, two are PMS pro-
viders Helios Capital and Old Bridge
Capital, which are led by former star
fund managers Samir Arora and Ken-
neth Andrade, respectively.
The founders of Helios, including
Dave Williams and Karan Trehan, have
a strong MF background. Williams was
also a trustee of Alliance Capital MF,
while Trehan was president and CEO of
Alliance Capital International, where he
set up asset management firms locally
and distribution relationships globally.
Bhaiya says that it is important for
investors to wait and see how the MF
team gets built, including fund manag-
ers, chief investment officers (CIO) and
chief executive officers (CEO).
Rupesh Nagda, managing director of
Family First Capital, says an analysis of
the track-record of managing investor
money can help gauge how the invest-
ment management team has performed
in the past. For example, PMS firms have
a track-record, which can be used to
make some assessment.
Old Bridge Capital’s All Cap Fund has
delivered negative returns (-8.6%) over a
one-year period, according to data from
HDFC Securities. The S&P BSE 500
Index has given 0.3% return s in the same
period. Since inception on 30 August
2016, the fund has delivered a com-
pounded annual growth rate (CAGR) of
What a car loan costs you
It is tempting to buy a new car, be it an upgrade, a first car or another car for the family. Whatever
be the reason, a car loan makes the purchase easier. Car loans are usually of three to five years
but some lenders may offer loans for up to seven years too. A loan for longer may mean smaller
equated monthly instalments (EMIs), which makes the car seem more affordable, but overall, you
Interest
Lender
rate (%)
Catholic Syrian Bank 8.00-10.75
IndusInd Bank 8.25-16.70
Indian Bank 8.60-9.70
Punjab National Bank 8.60-9.75
State Bank of India 8.60-9.45
Bank of Baroda 8.70-12.15
Union Bank of India 8.70-10.50
Central Bank of India 8.75-10.15
IDBI Bank 8.75-9.45
HDFC Bank 8.75
ICICI Bank 8.75
Bank of India 8.85-10.85
Indian Overseas Bank 8.85-10.05
Bank of Maharashtra 8.90-13.00
Axis Bank 8.90-13.05
Banks that have not updated information on their websites are not included here. Data was taken from bank websites on 9 March 2023. The EMI range is
indicative and calculated on the basis of interest rate range. In an actual situation, it may include other fees and charges. Actual applicable interest rate may
vary based on the credit profile, loan amount, tenure and as per bank’s discretion.
PARAS JAIN/MINT
MINT MONEY MoNDay, 13 March 2023
NeW Delhi 11
POWER
POINT
M AYA N K M O H A N K A
We welcome your views and comments at
mintmoney@livemint.com
The TUrmoil aT
US’ Silicon Valley
The rush for mutual fund licences
Flipkart co-founder Sachin Bansal-
backed Navi MF has launched US Total
Market Fund of Fund, which is India’s
Bank in 10 PoinTS
Firms that have got Sebi's in-principle approval, but are awaiting final nod only fund investing in a Vanguard fund,
T
the second largest asset manager in the he sudden catastrophic collapse of US-based Silicon Valley Bank
Name Sector Date of application In-principle approval on
world and a pioneer in passive investing. (SVB) and its seizure by the US regulatory authorities has caught
Zerodha Discount broking/fintech 5 Feb 2020 1 Sep 2021 Navi MF has also launched regular the interest of ‘We—the Mango People’ of India also, and has
Helios Capital Management Hedge fund/PMS 25 Feb 2021 1 Sep 2022 index funds such as Nifty 50 Index Fund frayed some nerves, too.
Old Bridge Capital Management PMS/AIF 15 Jul 2021 12 Oct 2022 and Nifty Next 50 Index Fund at the But in view of the very limited or negligible exposure of the Indian
lowest expense ratios in the industry. economy and banking system to the repercussions of the fallout of a
How the PMS' multi cap strategies have performed Nagda says even if it is a passive-only US banking system failure, this collapse hopefully will not have any
PMS Strategy name 1 year 3 years 5 years (CAGR %) AUM ( crore)
fund house, investors may want to wait direct financial impact on us.
and see how the fund house is executing However, this SVB crisis imparts critical lessons. But before learning
White Oak Capital India Pioneers
-6.1 its strategy. “Ensuring that tracking dif- these, it becomes essential to first know and understand what led to this
Management Equity 12 ferences are within a narrow range is not massive banking system failure in the US.
Consultants LLP* 16.1 8,019
as simple. It requires certain efficiency So, here is a simple explainer on the turn of events:
Old Bridge Capital
-8.6 in executing transactions in the fund’s 1. It all started on a very promising and bright note, with majority of
Management Old Bridge 21.8 1,101 portfolio, so that the portfolio is able to the US Silicon Valley’s big tech-startups, raising huge funds in a fund-
Pvt. Ltd. All Cap 8.2 reflect the index at all times,” he adds. ing spree from venture capitalists and big investors and depositing
Helios Capital -6.3 So, even when considering a passive their surplus/unutilized fund raises with SVB.
Helios India 701 scheme of a new fund house, track the 2. SVB, instead of keeping these deposits in liquid form (cash),
Management (India)
Rising Portfolio NA
Private Limited# index performance and the fund’s per- invested in US Treasury bonds. It is pertinent to mention here that
NA
#Helios Capital has close to two decades of
0.1
formance for a while to check for any wide these US Treasury bonds were adequately backed by the US govern-
track-record of managing Indian equity assets
14.8 deviation from the index it is tracking. ment, with minimalistic default risk.
through hedge fund strategies. Nifty 500 Index 3. The time bomb started ticking when the Fed increased federal
15.5
How mANy SCHemeS? interest rate (US Central Bank lending rate like Repo Rate in India) in
0.3 New fund houses may also come up with a continuous series, in order to curb inflation in the US.
*White Oak Capital has got Sebi's 15.0
final approval and has recently BSE 500 Index different investment processes. “Just 4. There is an inverse correlation between the interest rate and the
launched MF business 15.7 because it is a new or different invest- bond prices. So, the increase in the US Federal interest rate, resulted
Source: PMSBazaar, HDFC Securities; returns as on 31 Jan 2023; considered on basis of PMS' large strategies ment process, it doesn’t mean it would in the decline in the US Treasury Bond prices, which constituted the
disclosed on Sebi strategies; AUM as on 31 Dec 2022 as disclosed on Sebi's site
necessarily deliver outperformance,” major chunk of the investment portfolio of SVB.
Firms still awaiting Sebi's in-principle approval points out Ravi Kumar TV, founder of 5. The market value/net realizable value of these US Treasury
Gaining Ground Investment Services. Bonds, forming the investment portfolio of SVB, became less than the
Name Sector Date of application
Investment process or philosophy carrying value/ book value of these investments, in the balance sheet
Unifi Capital PMS 31 December 2020 can make or break a fund house’s per- of SVB.
Alchemy Capital Management PMS/AIF 1 January 2021 formance. More important will be to The collapse 6. At the same time, Silicon Valley start-
Angel One Broking 28 September 2021 check if the fund house is sticking to its of SVB will ups started incurring cash losses and
investment philosophy, especially when faced a funding freeze and stopped get-
Emkay Global Financial Services Broking/PMS/Wealth/AIF 3 March 2022
the fund house is focusing on actively- hopefully not ting funds from investors.
Abira Securities Broking 24 March 2022
managed schemes. Again, this can only have any direct 7. This liquidity crunch forced these
Wizemarkets (Capitalmind) PMS 28 October 2022 get validated over time. financial impact Startups to ask for their money/deposits.
Alpha Alternatives Fund Advisors AIF 8 November 2022 A well-defined investment process is on India 8. In order to honour such deposit
important as it can help to keep in check withdrawal demands of the Silicon Val-
fund manager’s own biases towards a ley start-ups, SVB was forced to sell its
Firms that have got Sebi's final approval What to watch out for in a new fund house particular stock or sector, which may investments in the US Treasury Bonds at a loss of around $1.8 billion,
AUM ( crore)
The pedigree of the management team, including fund hurt scheme performances in the long due to rising federal interest rate and declining bond prices. To com-
Samco MF
managers, chief investment officer & chief executive officer run. Also, a well laid out investment pro- pensate for this loss, SVB announced the selling of its equity. This
(Broking)
The credibility of the promoter of the new fund house cess helps the fund house keep the created panic among the Silicon Valley startups, and further acceler-
Does the new fund house have a well laid-down scheme performances intact, when there ated the process of withdrawal of their deposits from SVB.
WhiteOak
NJ MF Navi MF investment process
(MF distributor) (Fintech)
Capital MF
734 are fund manager exits. 9. Fresh deposits also became more expensive for SVB, with a
(PMS/AIF) Does the new scheme from the new fund house offer any
4,769 2,184 diversification (style/asset class) in your portfolio
While an existing investment track- federal interest rate’s hike.
1,654 record helps, it is important to remember 10. All this led to a crash of share price of SVB by 60% in the US
For passive-only fund house, track how efficiently its
funds mimic returns of the underlying index that investors in a PMS or alternate capital market, and ultimately the collapse of SVB, and the Federal
Source: Sebi, Amfi investment funds are likely to have a Deposit Insurance Corp. (US regulatory body) assuming the regu-
higher risk-appetite than MF investors. latory control of the bank.
PARAS JAIN/MINT
“Can the new fund house manage both Lessons learnt: The SVB crisis didn’t happen due to its bad loans
14%. Over the same period, the BSE 500 has delivered negative 6.1% returns in India’s largest broking house in terms the risk and return expectations of MF or its advances becoming non performing but it happened because
Index has delivered 12% CAGR. one-year period. of active clients, Zerodha, for instance, investors? This is something one needs SVB failed to foresee and assess the timing of serviceability/repay-
Helios Capital’s Helios India Rising Since inception (9 April 2019), the aims to disrupt the passive fund space to watch out for,” Kumar adds. ment of the deposits taken by it from the Silicon Valley startups and
Portfolio gave a negative 6.3% return in strategy has delivered 15.7% CAGR with more “efficient” products. Remember, investor returns in a PMS instead of keeping these deposits in liquid or short-term investment
one-year period, according to data from returns, according to data from PMSBa- Vishal Dhawan, founder of Plan may differ from the strategy as all flows instruments, invested them in long-term US Treasury bonds.
PMSBazaar. In the same period, the zaar. This is against 12% CAGR delivered Ahead Wealth Advisors, says many new are not pooled into one scheme, as is the In India, there the cash reserve ratio (CRR). It is a specified fraction of
Nifty 500 Index gave 0.09% returns. All by BSE 500 Index in the same period. fund houses may launch innovative case with mutual funds. Stocks are held the total deposits, which commercial banks have to hold as reserves either
returns are as of 31 January 2023. White Oak is backed by Prashant solutions on the passive side, but inves- in clients’ individual demat accounts. in cash or as deposits with RBI to ensure banks do not run out of cash to
Since inception (16 March 2020), the Khemka, who was former CEO and CIO tors should not consider such product Experts say new or first-time investors meet payment demands of depositors. CRR is a crucial monetary policy
PMS scheme has delivered CAGR of Goldman Sachs Asset Management in offerings just because of their novelty. are still better off with established firms. tool and is used for controlling money supply. Currently CRR is at 4.50%.
returns of 20% against 25% by the Nifty India. WhiteOak MF is headed by “New fund houses would try to disrupt “Running an MF also requires meet- Secondly, SVB was caught off-guard and it ran out of cash as it failed
500 Index. To be sure, Helios Capital Aashish Somaiyaa, who is former CEO both on the cost and solutions side. ing several compliances, and putting in to foresee the very basic correlation between rising US federal interest
has a much longer—nearly two decades of Motilal Oswal MF, and has over two Investors will have to take a very nuanced place several checks and balances to rates and the declining US Treasury bond prices, constituting its invest-
of track-record—of managing Indian decades of experience in MF industry. approach when considering such funds. ensure smooth running of the business. ment portfolio and, consequently, its mark-to-market loss (book loss),
equity assets through long-short hedge They would need to see if there is any- Investors should look who are the pro- suddenly converted into actual loss, on forced selling of its investments
fund strategies. PASSIve-oNLy offerINgS thing truly unique, or is it just another moters? Is there a good credible name in US Treasury bonds, below their acquisition costs, in order to service
White Oak Capital is another PMS Apart from PMS providers, some of the ‘me-too’ investment strategy. In that behind the fund house?,” according to the withdrawal demands of deposits by the Silicon Valley startups.
firm that recently launched MF opera- new fund houses are focusing only on case, the opportunity may have to wait R. Balakrishnan, a former mutual fund Mayank Mohanka is the founder of TaxAaram India, and a partner
tions. Its PMS, India Pioneers Equity, passive funds. till a track-record is built,” Dhawan says. CEO and financial industry veteran. at SM Mohanka and Associates.
How to repay education loan in parents’ name
Parizad Sirwalla
ISTOCK
fer of such capital asset. The long-
term capital gains in this case is to
pay more as interest. Don’t forget that a car is a depreciating asset, so taking a bigger loan I had taken an education loan be calculated without giving ben-
may not be the best thing to do. But if you take a car loan for a short duration, the EMIs for my son, who has com- efit for cost inflation index.
will be heavy and non-payment will mean a blot on your credit report. Conditions pleted his studies in the US Where shares were acquired
apply to the loan amount also. For instance, some lenders give a loan for the full and is currently employed. I prior to 1 February 2018, grandfa-
ex-showroom price of the car, while others may offer a loan up to 80%. Apart from have been paying the interest thering provisions as per provi-
the interest rate on a car loan, also take a look at the applicable processing fee and portion till now. Now he sions of section 55 shall be
other charges. wishes to repay. Should I ask allowed while calculating cost of
Loan amount = ₹1 lakh. Tenure = 5 years him to pay direct to the loan acquisition for such asset.
account? Also, advise me Please note that investment
about the tax implication and in SCSS is eligible for deduction
EMI (₹) Processing fee remittances mode for the under Section 80C(2) of the Act
amount to be transferred. (subject to the overall maxi-
2,028-2,162 1% of the loan amount —Name withheld on request ASK MINT to invest in the senior citizens mum limit of ₹1.50 lakh), how-
m TA X AT I O N savings scheme. Please advise ever from incomes other than
2,040-2,469 3% of loan amount It has been assumed that the if I can book profits in a few of capital gains. Hence, invest-
2,056-2,110 0.50% of the loan amount (maximum ₹10,000) education loan was taken by my shares and transfer the ments in SCSS shall not be eli-
you in India and your son is cur- (includes children), may be eligi- proceeds towards SCSS this gible for any tax benefit against
2,056-2,112 Full waiver up to 31 March 2023 under PNB Festival Bonanza offer
rently above 18 years of age. ble for deduction under section fiscal, and on tax implication. taxable LTCG (i.e., gains
2,056-2,098 Nil From a tax perspective, as per 80E of the Act, up to a maximum —Manish Mankad exceeding ₹1 lakh) and you shall
2,061-2,232 Nil up to 31 March 2023 the provisions of section 56 of the of 8 financial years (starting with be required to pay tax @ 10% on
Income-tax Act, 1961, where an the year in which interest repay- We understand that you are taxable LTCG. There are other
2,061-2,149 ₹1,000 (Nil for staff members) individual receives any sum of ment starts) and subject to ful- a senior citizen below the age of exemptions available against
2,064-2,132 0.50% of loan amount + GST (minimum ₹2,000 and maximum ₹10,000) money, without consideration filment of specified conditions. 80 years and wish to invest the taxable LTCG under Section
from a specified relative, the same Availability of this deduction in sale proceeds from share of 54EC, 54F etc., towards rein-
2,064-2,098 Up to ₹2,500 is not considered as taxable income your/your son’s hands can be listed equity shares (held for vestment in prescribed bonds,
2,064 0.5% of loan amount, minimum ₹3,500 and maximum ₹8,000 of the individual. Hence, the trans- evaluated, depending upon more than 12 months) in senior residential house, etc., which
fer of funds to your account by whose name the loan continues citizens savings scheme, 2019. may be explored.
2,064 ₹5,500-₹8,500
your son (considered a specified to be in, tenure of the loan, eligi- Section 112A of the Income-tax Parizad Sirwalla is partner
2,069-2,167 Waived till 31 March 2023 under festive offer relative), for the purpose of loan bility of the lender institution Act, 1961, says capital gains aris- and head, global mobility services,
2,069-2,127 100% waiver till 31 March 2023 repayment, will not be taxable and other prescribed condi- ing from transfer of a long-term tax, KPMG in India.
income for both your son or you. tions. capital asset being an equity
2,071-2,275 Nil Separately, as per the provi- Please note that the forex share in a company shall be taxed Do you have a personal
2,071-2,278 ₹3,500-₹5,500 sions of section 80E of the Act, implications of any of the above at 10% (plus applicable surcharge finance query? Send in your
the interest component on edu- transactions should be reviewed and cess) on capital gains exceed- queries at
cation loan taken by an individ- separately, in case any of you are ing ₹1 lakh, if STT (securities mintmoney@livemint.com
and get them answered by
ual for the purpose of higher residing outside India. transaction tax) has been paid at
Source: MyMoneyMantra.com industry experts.
education of self or relative I am a senior citizen and wish the time of acquisition and trans-
12 MoNDay, 13 March 2023
New DelhI VIEWS LIVEMINT.COM

OUR VIEW MY VIEW | THE INTERSECTION

ISTOCKPHOTO

It is time to ask if the panchayati

raj model really works for India
Decentralization and devolution of power might not be the best solutions for grassroots governance

grow well in the soil of Indian society.
There are four broad reasons to chal-
lenge the assumption that grassroots
democracy delivers.
First, as Ambedkar argued, there is an
absence of fraternity at all levels of
Indian society. People of an Indian vil-
lage or town do not have a shared sense
of civic community. There is, instead, an
NITIN PAI intense inter-group competition for
is co-founder and director of The resources, status, power and opportuni-
Takshashila Institution, an independent ties. Politics is primarily devoted to pur-
centre for research and education in public suing and managing this competition
policy and, as a consequence, is poorly
panchayats and municipalities, as the
direct taxpayer-to-voter ratio is very low.
Local governments can raise more
revenues under various heads under
their purview. But they don’t. Their own
revenues as a share of their total budget
have been declining over the last decade.
We can blame centrally sponsored
schemes and non-decentralization of
state finances for this, but how do you
explain lack of interest in collecting
property and other taxes that municipal-
ities ought to? As Arvind Subramanian
told me, “The closer the government is

The US should promote

equipped to manage common resources to the people, the more unwilling it is to
or delivering quality public services. Can raise taxes.” The downshot is that broad-

W
e have had three decades of panchayati raj create the fraternity that ening the tax base is tantamount to nar-
decentralized local govern- is essential to its success? The empirical rowing the electoral base. Why would
ments. Next month will mark evidence suggests it does not: on the panchayati raj be more accountable for

globalization of labour the 30th anniversary of panchayati raj,

when the 73rd and 74th amendments
gave Constitutional status to rural pan-
chayats and urban municipal councils.
contrary, to the extent that caste and
community identities are poles around
which political mobilization takes place,
it has perhaps created the opposite.
its governance responsibilities?
Finally, the lack of a republican con-
sciousness among our citizens cannot be
ignored. Democratic institutions are
The conventional wisdom is that pan- Second, the claim that local politics about role-playing: mayors, officials and
chayati raj is a great idea, the amend- will lead to better governance must con- magistrates are not exemplary individu-
Letting in workers from overseas could relieve America’s labour shortage and calm anxieties ments were faulty and while local gov- tend with the reality that Indian voters als parachuted from another planet.
ernment has created tens of thousands of do not connect their electoral decisions They are ordinary citizens given
over inflation, interest rates and bank failures that have kept the world of finance on edge local politicians, improvements in local with the delivery of better public servi- constitutionally ring-fenced roles to
governance itself have been marginal. ces or economic development. The play. It is not that we are incapable of
The idea of decentralizing power and number of politicians who have been playing these roles, but rather, nobody
situating it close to citizens has appeal. re-elected based on their track record of spends any effort educating citizens on

J
ust as dearer money was losing its scare,
Silicon Valley Bank (SVB) went bust in
the US after a run on deposits was set off
by news of how badly its bond portfolio
was battered by rising rates of interest.
This followed a curveball thrown by US
Federal Reserve chair Jerome Powell in
his testimony before lawmakers. Its hawkish
tone on inflation proving stubborn evoked the
spectre of the world’s most influential central
bank reverting to steep rate hikes after having
reduced its pace of action recently. Robust
consumer spending and factory data underpin
Powell’s inflationary concerns, although the
chief worry is continued tightness in America’s
labour market. Joblessness remains very low
and hiring too strong for its slowing economy,
making space for wage-push inflation that
would have to be fought with tighter credit. As
the return of big rate hikes by the Fed will hit
asset values globally, investors were shaken by
Powell’s words. India could suffer renewed
capital outflows, currency weakness and infla-
tionary pressures, for example, if domestic rates
3.4%, its lowest since 1969, and a scarcity of
workers can still inflate payrolls, business costs
and price tags. “Although nominal wage gains
have slowed somewhat in recent months, they
remain above what is consistent with 2% infla-
tion and current trends in productivity,” Powell
said, “Strong wage growth is good for workers,
but only if it is not eroded by inflation.” This is
the crux of what has kept the financial world on
edge. The pandemic shrank America’s work-
force in a wave of opting out that left recruiters
in a scramble for fewer people. And so far, the
Fed’s efforts to cool the US economy have not
been able to reduce demand for workers in line
with shrunken supply. This imbalance looks
likely to persist, as covid might have bent its
labour-supply curve out of whack well beyond
the near term. Life is too short not to maximize
leisure, some folks might have told themselves.
The solution to America’s problem lies in
Washington, but in politics instead of central
bank actions. The US needs to open itself up
to immigrants in vast numbers and stare down
political resistance to this idea. Xenophobia is
Yet, whatever political theory advertises, improving law-and-order, building their roles and responsibilities. Civic
it must pass the empirical test. The crop infrastructure and raising growth is education is woefully short of demo-
might be bounteous, but it must grow on small. Populism, corruption, caste and graphic growth.
Indian soil. After 30 years, can we really communal mobilization are far more India’s raucous public sphere is filled
claim that we are better off with pancha- effective in winning elections at the state with demands for a lot of things: one that
yati raj than without it? Even its most and national levels. Why should it be any is conspicuously missing is demand for
fervent proponents will argue that this different at panchayats or municipali- decentralization. When was the last time
barrel is half-full. Only if you scrape the ties? After all, it’s the same electorates. there was a public agitation for “more
bottom, I would add. Third, people don’t expect panchayati power to the panchayat”? Why, Benga-
The argument that the amendments raj institutions to be accountable luru has not had a municipal corporation
had flaws or its implementation was because the link between paying them for over two years and people are going
undermined by India’s political econ- direct taxes and receiving public services about their daily lives as usual.
omy avoids confronting more funda- is weak. If you pay a part of your income Like they say about democracy, we
mental issues. In any case, as Ambedkar to the local council to pay for schools, could argue that panchayati raj is the
said, “However good a constitution may roads and hospitals, and if you are con- worst form of government except for all
be, if those who are implementing it are vinced that there is a connection the alternatives. I think that’s a cop-out.
not good, it will prove to be bad. How- between them, you are likely to hold the Instead of worshipping at its altar, we
ever bad a constitution may be, if those councillors accountable. This happens, should be thinking of more effective
implementing it are good, it will prove to to some extent, in urban resident welfare models that can improve grassroots
be good.” So we are back to the question associations, where the payer-to-voter governance in Indian conditions in
of whether the crop of panchayati raj can ratio is high. But it does not happen in the information age.
www.livemint.com
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Wednesday, March 13, 2013 Vol.7 No.62 `3.00 in Delhi­NCR/`4.00 outside Delhi­NCR 24 PAGES
+ 4 MARKETS PAGES

do not keep up. This constitutes a scenario that costly and it makes sense to minimize this tab. NATION: India, Italy head for
showdown over marines >6
POLITICS: Cabinet defers decision on
anti­rape legislation >7

should keep policymakers on high alert. The globalization of capital with labour held CONTENT PARTNER
AVIATION: Aviation ministry fears legal
hurdles for AirAsia >8
INTERNATIONAL: Vatican starts conclave
to find new pope >24

As a startup lender based in California, SVB behind border controls has led to distortions SENSEX 19,564.92 æ 81.29 NIFTY 5,914.10 æ 28.25 DOLLAR `54.18 æ `0.23 EURO `70.70 Æ `0.03 GOLD `29,410 æ `0.95 OIL $109.90 Æ $0.03

It has been said

DEUTSCHE BANK REPORT ECONOMIC OUTLOOK QUICK EDIT

was uniquely exposed to chunky withdrawals which the US, given its global heft, must help RIL to invest Industrial output up, but high
inflation dampens rate cut hopes
The Italian
job

$27 billion in F inally, what was feared

B Y A SIT R ANJAN M ISHRA for long has happened.
MIXED SIGNALS asit.m@livemint.com The two Italian marines

that arguing against

························· who gunned down
Inflation measured by the Consumer Price Index rose to a record high in NEW DELHI
innocent fishermen off the

and had too much money in US Treasury bonds resolve anyway. This moment offers President S February, even as factory output accelerated in January after contracting ignalling that the economy coast of Kerala have

four years
Report says RIL at cusp
of its next capex cycle;
the month before. may have bottomed out, In- escaped. They will not
dia’s factory output in January return to India to face
15 grew 2.4%, marking an accelera- justice.
tion from a contraction of 0.5% Right from the day the
in the previous month. two were apprehended,
10 However, retail price inflation they were treated with kid
The Deutsche Bank report 10.26 10.91 accelerated to a record high of gloves. Instead of being
provided a break-up of RIL’s CPI 10.91% in February from 10.79% bundled to jail, they were

bought at pandemic highs, but other American Joe Biden a historic chance to decisively reverse
amount 50% more than
what Mukesh Ambani
stated in June ’12 meet
B Y A VEEK D ATTA
aveek.d@livemint.com
·························
proposed investment as per its
calculations—$11 billion for ex-
ploration and production (in-
cluding US shale gas), $4 billion
on refining, $8 billion for petro-
chemicals, $3 billion on tele-
com, and $1 billion on retail.
The Deutsche Bank analysts
globalization is like
5 in the previous month, on the hosted in a rest house; a
2.4 back of rising prices of vegeta- Christmas break was
IIP bles, cereals and protein-rich charitably granted; and
items, dampening the prospects finally they were allowed
0
of the Reserve Bank of India to go home to vote! These
-1.8 (RBI) effecting a hefty rate cut. were clear indicators that a
-1.3 Capital goods
-5 RBI is scheduled to announce plan for their exit was
its mid-quarter review of mone- being prepared all along.

banks have also seen their holdings lose value. Donald Trump’s ‘wall-em-out’ policy, which
noted that their meeting with tary policy on 19 March. A Reu- Irrespective of what
MUMBAI RIL’s joint CFO convinced them ters poll indicated that 32 out of
-10 Prime Minister Manmohan

R eliance Industries Ltd of their bullish view based on 40 analysts polled expect RBI to Singh says now (see Page

arguing against the

(RIL) will invest around
$27 billion (`1.47 trillion
today) in the next four years till
the end of fiscal 2017 (FY17)
across its various businesses,
according to a Deutsche Bank
expectations of approval for gas
price increases in FY14; approv-
als for the company’s R-Series
gas field in the Krishna-Goda-
vari (KG) D6 gas reservoir and
development plans in the next
cut the policy repo rate by 25 ba- 6), India’s leaders—from
-15 sis points (bps) to 7.5% to boost the top to the local ones in
growth. A basis point is one- Kerala—cannot escape
hundredth of a percentage point. responsibility from this
-20
Arvind Mayaram, secretary in sordid affair.
the department of economic af- This episode will go

So, while the contagion risk of SVB is not the was a victory of ethnic conservatism over com-
AG report issued after its ana-
lysts met one of the company’s
two joint chief financial officers
(CFOs). The number is about
50% more than the estimate
fiscal for the NEC-25 gas block; -21.5 fairs in the finance ministry, said down as a black mark in
improving visibility on moneti- -25
India’s legal history: the
zation of these discoveries; and TURN TO BACK PAGE ® rights of two foreigners
the start of a new capex cycle. were more important than
The prospects of RIL’s hydro- ALSO SEE those of the poor
-30

mentioned by RIL chairman
Mukesh Ambani in June last
year.
“We believe RIL is at the cusp
laws of gravity.
carbons exploration and pro- >Mark To Market: Sand in the wheels of
fisherfolk, whose only goal
April February
duction business have begun the rate cycle >P14 was to earn a living for
looking up after a period of >India’s consumer price inflation among their families.
Source: Central Statistics Office
challenges over the last three highest in the world >P14

alarming kind we saw of entangled East Coast passion and economic wisdom. The US was
of its next capex (capital ex-
penditure) cycle as it invests
around $27 billion over FY13-
FY17 (85% in its core business),”
said the 11 March report by ana-
lysts Harshad Katkar and Amit
Murarka.
In a related development, the
report also said that RIL’s man-
banks caught in the financial crisis of 2007-08, short of workers even before covid, with its
agement expects its retail ven-
ture, which has been a loss-
making one thus far, to break-
even next fiscal.
RIL has two joint CFOs, Alok
Agarwal and V. Srikanth. The
Deutsche Bank report didn’t
specify which of them it met.
SARVESH SHARMA/MINT
years, especially with gas pro-
duction from the flagship D6
reservoir in the KG basin falling.
The company and its British
partner BP Plc have been lobby- PSUs, private HIGH STAKES
ing for more remunerative gas
prices. The demand may have
received a boost with a commit-
sector may India’s stock exchanges take
tee led by C. Rangarajan, chair-
bid jointly for
their battle to new frontiers
man of the Prime Minister’s
economic advisory council, rec-
ommending a new formula for
gas pricing in India. According
energy assets RAMESH PATHANIA/MINT
to this, natural gas prices work B Y U TPAL B HASKAR B Y V YAS M OHAN & the cash segment apart from the
out to around $8 per million utpal.b@livemint.com A NIRUDH L ASKAR derivatives market seems to
British thermal units (mmBtu), ························· ························· have worked for the bourses.
nearly double the current $4.2. NEW DELHI MUMBAI The regulator has also reduced

I I
KOF I A N N A N
The company reiterated its To be sure, the pricing proposal n a bid to avoid undercutting ndia’s battle of the bourses, the cooling-off period between

today’s anxieties will not ease till the US federal entry gates kept clenched. Today, it must open
investment target in an email
that it sent in response to que-
ries.
“As highlighted in the past,
we have plans to invest around
`100,000 crore over the next five
years in India across our busi-
nesses,” RIL said. “We are also
planning to invest in a series of
is yet to be accepted by the gov-
ernment, although the agree-
ment to supply gas at $4.2 per
mmBtu ends next year.
RIL and the oil ministry—es-
pecially under former minister
S. Jaipal Reddy—have also had
several disputes ranging from
differences on understanding of
and to enhance the prospects
of bids for overseas energy as-
sets, the government is working
on a strategy to ensure that pub-
lic sector units (PSUs) and pri-
vate companies coordinate their
actions, including the submis-
sion of a single bid.
If effected, this could make In-
joined by the month-old MCX incentive schemes—or the time
Stock Exchange Ltd (MCX-SX), gap between the withdrawal of
is getting more intense and one set of incentives and the
spreading to new frontiers—in- launch of the next—from six
centive offers, technology and months to two.
global tie-ups. The rivalry be- Still, no one is quite sure what
tween National Stock Exchange will happen once the rewards
of India Ltd (NSE), BSE Ltd and are withdrawn.
MCX-SX revolves around one BSE, Asia’s oldest stock ex-

funds rate reaches a peak, which may turn out them wide for the sake of its own economy—
projects to develop around 4
trillion cu. ft of discovered natu-
ral gas from the KG-D6 block,
which would entail a potential
investment in excess of $5 bil-
lion over the next three to five
years. RIL’s share would be
around 60% for this potential in-
vestment.”
the cost recovery entitled to the
company from its operations at
D6, to approvals for RIL’s work
programme across various
blocks getting stuck.
The relationship has however
improved since M. Veerappa
Moily became oil minister in
October.
dian bids more competitive and
potentially strengthen the coun-
try’s bid for energy security.
“The government is trying to
coordinate the actions of the
public sector units and private
sector companies. The idea is to
work out on a realistic basis
what is stopping (them) from
dominant theme: liquidity, the change, has managed to revive
largest pool of which is control- Latest entrant: MCX­SX opened its nearly non-existent deriva-
led by NSE. for business on 11 February after a tives segment after it started of-
MCX-SX, promoted by Finan- long battle with the regulator. fering incentives to trading
cial Technologies (India) Ltd members in late 2011.
and Multi Commodity Ex- daily average turnover of `1.566 NSE, the leader in the deriva-
change of India Ltd (MCX), trillion on NSE and `13,534.69 tives segment by a wide margin,
opened for business on 11 Feb- crore on BSE in the 14 trading is focusing on technology and
ruary after a long battle with the days of the month. partnerships instead of incen-

higher than projected earlier. For price stability and the world’s. Labour globalization is a good
The company added that “any
additional capital expenditures
in Deutsche Bank’s report is
based on their own estimates”.
RIL said, “All these projects
are proposed to be fully funded
by RIL through a combination of
export credit agency financing,
accessing the public markets,
In connection with the new
investments RIL is likely to
make over the next four years,
the Deutsche Bank report said
these were likely to yield an in-
cremental Ebitda (earnings be-
fore interest, tax, depreciation
and amortization) of $3.5 billion
annually starting in FY17.
bidding in a coordinated man-
ner. There are a few procedural
issues which the government is
trying to iron out,” said a person
aware of the exercise who didn’t
want to be named due to the
sensitive nature of the matter.
The world’s fourth largest en-
ergy consuming nation’s push
stock market regulator. It logged
a combined average daily turno-
ver of `11.07 crore in 14 trading
sessions in February in the cash
and derivatives segments com-
bined.
One week after starting trad-
ing, the exchange started offer-
ing cash incentives to brokers in
In the first seven trading ses-
sions in March, MCX-SX’s aver-
age daily turnover has risen to
`224.48 crore, still a fraction of
that of its older rivals. The com-
parable figures for NSE and BSE
in March were `1.197 trillion
and `13,674.07 crore, respec-
tively.
tives. The exchange claims its
technology is one of the best
among global bourses and that it
is top in terms of the number of
buy and sell orders processed
per day in the futures segment.
BSE is fighting the battle on
two fronts—it is competing with
MCX-SX on incentives and with

to be restored, America’s labour market needs way forward. To champion this cause, however,
syndicated loans and cash that
exists on the balance sheet.”
Mint is also available for R7 with
Hindustan Times in Delhi-NCR only
The report “estimates the
petchem (petrochemicals) and
refining capex to have low pay-
TURN TO PAGE 4®
for resources has pitted India
against China in a race for global
resources—a contest in which it
TURN TO PAGE 4®
the cash segment to attract busi- The market regulator’s deci- NSE on technology. And both
ness, becoming the first bourse sion to relax the norms for li- BSE and NSE are competing
to do so. quidity enhancement schemes with each other when it comes
The value of trading on MCX- on 8 February by allowing stock
SX in February compares with a exchanges to offer incentives in TURN TO PAGE 5®

to develop slack; US joblessness in January was economics must trump politics.

MY VIEW | MODERN TIMES

Why it still matters what the West thinks of Modi’s India

mechanism is the same even today. People
MANU JOSEPH pay allegiance to a person, belief, organiza-
tion or an ideological bloc, but if they are not
happy with what they get out of their loyalty,
they try to align with an equal or bigger force.
The same tactic was at the heart of B.R.
Before that, in a chat hosted by a think- keen to reach out to an external force, the States.” There was a general ambiguous feel-
tank, he said the Rashtriya Swayamsevak West, to exert pressure on Modi to be fair. ing that the West was, all said and done, good.
Sangh, widely regarded as the mother ship of Shifting allegiance from one syndicate to But as people are more informed and misin-
the BJP, was a “fundamentalist, fascist orga- another does not guarantee success. For formed in the age of information, America
nisation.” “You can call it a secret society,” he instance, Ambedkar himself faced failure. and the rest of the West do not have that
said, “It’s built along the lines of the Muslim Most Dalits did not convert. The Hindu reli- moral heft anymore.

L
et us say, you have to take on Narendra
Modi and you need a bigger political
force than him for this, whom will you
call? Which brings us to why, a few days ago
in London, Rahul Gandhi complained about
the demise of India’s democracy. He was
doing what many disenchanted Indian
activists before him have attempted—cam-
Ambedkar’s exhortation to Dalits to abandon
the very source of casteism, the Hindu reli-
gion, and shift allegiance to Buddhism. This
is also why many Dalit intellectuals have glo-
rified the English language and dismissed
Hindi. One Dalit activist even attempted to
build a temple to Goddess English. Writers
and filmmakers who have been ignored by
Brotherhood and the idea is to use the demo- gion, a formidable cultural force, largely pre- I do not see how the West can seriously
cratic contest to come to vailed by reforming itself. infiltrate the present Indian political system
power and then subvert the The West was once a major to “restore” fair practices. But there are some
democratic contest after- There are player in the local politics of potent aspects in the Western moral system
wards.” A common mes- emerging economies. It still that Modi and his BJP may underestimate at
sage in all his chats was that potent aspects might be in some, but not their own peril. For instance, the West has a
except for the fact that elec- anymore in India. As superb monster-creating machine in its lib-
tions are held, India is not a
of the Western recently as 10 years ago, eral media. Take, for instance, the global

is a journalist, novelist, and the

paigning to make the West a counterweight
to Modi and his Bharatiya Janata Party (BJP).
creator of the Netflix series,
‘Decoupled’
Can the West be that?
Seeking external influence to neutralize a
local force is not an esoteric tactic. Even ordi-
nary people use it all the time—disenchanted
with their primary oppressor, they try to align
with a bigger bully.
In the time of street thugs, loyalty was the
protection money people paid their thugs.
When the thugs were not good enough to
protect, people shifted allegiance to a bigger
thug. That is how the age of thugs may have
ended—when bullies could not protect peo-
ple from more formidable forces and people
sought out more useful oppressors. The
the Indian intellectual establishment rou-
tinely try reaching out to the West, where the
acclaim industry is more influential. In fact,
the value of intellectual acclaim itself is that
it is a counterweight to capitalism. And the
humanitarian movement in any nation is, one
way or another, a part of the global Western
counterweight to local strongmen.
Rahul Gandhi did not exactly “address the
British parliament” as some of the Indian
media reported; he spoke in one of the rooms
there, to about 90 people, among whom
there were some British parliamentarians. He
told them that Modi’s government was “sti-
fling” and that being a member of parliament
in India was “quite rough” these days.
true democracy anymore.
He also claimed his phone
moral system there were signs that Modi
was concerned by what the
image of Saddam Hussain, Vladmir Putin and
even Donald Trump himself. Modi is already
was bugged by the Indian
government, and that India
that the BJP may Western media thought of
him. Also, Western govern-
in the cross-hairs of Western media, which is
an integral part of the ideological bloc known
“has already been invaded” underestimate ments could arm-twist us as the West. Modi’s image there, I feel, is just
by China. Once, he stated with economic threats and a level better than Putin-Hussain and in the
that Europe and the US at its own risk sanctions. All that has same category as Tayyip Erdoğan and Jair
were not doing enough “to changed. It is possible that Bolsonaro. It could get worse.
restore democracy in Modi has given up on win- On crimes against humanity, the West
India” as they profited from trade with India. ning the affection of Western media. Also might be hypocritical but its concern is not
Rahul Gandhi may believe, rightly, that India is too big now for the West to squeeze. fake. I believe that the West truly finds clear-
Indian democratic institutions do not favour What does India want to be; which country cut evil despicable. So there would likely be
him anymore. Once, he probably respected is India’s role model? If you asked the middle- economic and political consequences to a
these institutions. After all, his party created class this 20 years ago, or even at the height of global perception, which Rahul Gandhi may
them. But then, what use is allegiance if the India’s fake love affair with the Soviet Union, have contributed to in London, that Modi and
syndicate does not protect you? So he seems the answer would have been “the United the BJP committed such crimes.
LIVEMINT.COM VIEWS MoNDAy, 13 MArch 2023
New Delhi 13

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

Remove the value cap on exports A treaty to protect the world’s

oceans will serve everyone well
by courier for an SME trade boom A UN pact will grant the high seas a big role in climate mitigation

India’s denial of speedy air-freight services to exports worth over ₹5 lakh has restricted the export prospects of Indian SMEs

ISTOCKPHOTO

LARA WILLIAMS
is a Bloomberg Opinion columnist covering
climate change.

ARPITA MUKHERJEE
is professor, Indian Council for Research on
International Economic Relations

H
ere’s a pop quiz. What is the earth’s
biggest carbon sink? Nope, it’s not
forests, or peatland. It’s that body of

I
ndia has a high growth potential at a time
when many of its key export markets are
facing an economic slowdown. The Interna-
tional Monetary Fund (IMF) has predicted
that by 2027, India will be the world’s fourth
largest economy, with a gross domestic prod-
uct (GDP) of about $5.53 trillion. To reach this
target, there is a need to reduce logistics costs and
time and achieve exponential growth in both
domestic and international trade.
Acknowledging this, many measures have
already been taken by the government to support
growth and trade. The path-breaking reform of a
single goods and services tax (GST), along with
schemes like the production-linked incentive pro-
gramme, a close focus on the country’s logistics
sector under the PM Gati Shakti National Master
Plan for Multi-modal Connectivity and the
National Logistics Policy of 2022, apart from trade
agreements with key export markets and govern-
ment support for onboarding small and medium
enterprises (SMEs) to digital platforms, are all
expected to deliver a manifold increase in India’s
exports and fast-track our integration in global
value chains to make the country atmanirbhar or
self-dependent.
Yet, India’s share in global exports is less than
2% and the country is struggling to meet export
targets of $1 trillion of goods and services each by
2030. This is because of certain restrictions faced
by exporters, especially SME exporters, which
account for around half our xports. Among them is
the lack of SME integration in global value chains.
Another is a big barrier they face while using the
most efficient mode of quick cargo movement:
express delivery services.
While India’s forthcoming Foreign Trade Policy
may have a chapter dedicated to facilitating the
integration of SMEs in global value chains, India is
probably the only country which has a value limit
of ₹5 lakh on exports of goods through courier/
express mode. This adversely impacts the ability
of our SMEs in high-value sectors like gems
and jewellery, handicrafts, electronics and auto
component goods to use express delivery services
(EDS) for faster door-to-door delivery of goods
and samples at reasonable cost.
Most clients of the express industry are SMEs.
While integrating SMEs in global value chains is a
priority on the country’s agenda during its G20
presidency, our own SME exporters are losing out
on an opportunity to use expedited delivery, due
to the export value limit. High-value shipments
are now exported through the general cargo
mode, which causes delays.
While time and again this restriction of value
has been raised by service providers and users, the
main issue is that the limit is notified in the For-
eign Trade Policy and is also part of India’s out-
dated courier regulation. The express delivery
sector is regulated by the Courier Imports and
Exports (Electronics Clearance) Regulation, 2010,
which replaced the Courier Imports and Exports
(Clearance) Regulation, 1998. In the year 1998,
when the first courier regulation came into force,
the clearance of courier goods was being done
manually at air passenger terminals.
Over the last 25 years, India’s express delivery
industry has made substantial investments in
infrastructure and IT systems and has worked
with Customs authorities to streamline the set-up
and processes. From 2018 onwards, courier
exports have been done via the Express Cargo
Clearance System (ECCS), which is a robust
IT-based risk management system. The Customs
clearance of express/courier shipments has
moved from passenger terminals to dedicated
express terminals. Yet, the value restriction con-
tinues, as the 2010 Courier Imports and Exports
(Electronics Clearance) Regulation has not been
modified to reflect these developments.
There is therefore an urgent need to review the
2010 Courier Imports and Exports (Electronics
Clearance) Regulation, and align it with the
demands of modernization in general and with
our upgraded infrastructure and global best
practices in particular.
With e-commerce recording double-digit
growth in recent years, both globally and in India,
it is now a necessity for our SMEs to use this plat-
form. There is growing global demand for Indian
ethnic and cultural products. The government is
also promoting such products in global markets.
However, can designers from Varanasi, weavers
from Kanchipuram or the exporters of Moradabad
brass statues or Tanjore paintings cater to global
consumers with a restriction of ₹5 lakh on courier-
delivered exports?
Our exporters are competing with exporters
from countries like Malaysia, Vietnam, China or
Thailand in global markets. They should have a
level playing field as these countries do not have
any value limits on exports. Indian exporters
should have the right to choose between express
and general cargo, irrespective of policy restric-
tions. To ensure this, the value limit, as notified
under the Foreign Trade Policy, should be
removed, and then Customs can notify this
change under the country’s courier regulation.
As a first step, the forthcoming Foreign Trade
Policy (April 2024), which is likely to focus on
enhancing exports and linking SMEs to global
value chains through e-commerce platforms, may
examine the adverse implication of value limits on
exports through the courier mode, and push for
their removal.
These are the author’s personal views.
water that covers 71% of our planet’s sur-
face: the ocean. Three billion people
depend on its ecosystems for food and eco-
nomic security. It also mitigates climate
change, having absorbed 93% of the heat
trapped by greenhouse gases and about
30% of the CO2 emitted by burning fossil
fuels so far. If we didn’t have the ocean,
we’d be much worse off. In return, human-
kind has polluted the oceans with oil, sew-
age and plastic. We’ve plundered our
waters, harvesting fish stocks to depletion,
tearing up the seabed with trawl nets and
mining deep-sea mineral deposits. Noisy
and polluting vessels plough across waters
and sometimes into marine creatures.
Some 10% of marine species are at risk of
extinction—and that’s just the ones we
know about. It’s often said that we know
more about the moon than we do about the
deep sea, so the damage could be worse. A
third of fish stocks are overfished; they’re
being caught faster than populations can
recover. As seawater absorbs CO2 and heat,
it is becoming more acidic—30% more so in
the last 200 years—and warmer.
Currently, less than 7% of the ocean is
protected. Of the waters 200 nautical miles
out from shore, beyond national jurisdic-
tions, just 1% is well protected. These waters
are known as the high seas, a largely lawless
place that makes up two-thirds of the
world’s ocean and 95% of the Earth’s habita-
ble space by volume. They teem with life,
supporting whales, sea turtles, huge shoals
of fish, deep-water corals. The health of the
high seas is integral to the well-being of the
planet. That’s why it’s a huge breakthrough
that after nearly two decades of negotiation,
the high seas will finally get the protection
they deserve.
United Nations member states struck a
deal for a new agreement that provides a
framework for more robust governance of
international waters. The high seas accord,
formally known as the Biodiversity Beyond
National Jurisdiction treaty, classifies 30%
of the world’s oceans as protected areas,
requiring environmental impact assess-
ments for emerging activities and ensuring
that benefits from the use of marine genetic
material are shared.
The idea is to help protect and restore the
ocean’s biodiversity. By enabling nations to
set up marine protected areas (MPAs) in the
high seas, protecting 30% of land and sea by
2030 becomes far easier. These MPAs can
be very effective: A 2017 study showed that
marine reserves in national waters have on
Whales help phytoplankton thrive and
capture atmospheric carbon
average 670% more fish, as measured by
biomass, than adjacent unprotected areas.
Not only is that a promising sign, but these
flourishing populations also spill over into
fishing areas, providing fishermen with
increased catches. But there could be
another benefit: climate mitigation.
The ocean is a huge carbon sink, but that
status is increasingly threatened. Liz Karan,
oceans project director at Pew Charitable
Trusts, said that a healthy ocean ecosystem
plays an important role in the carbon cycle.
If biodiversity is lost, then the ocean’s eco-
system services—carbon sequestration and
oxygen production—would also be poten-
tially lost or greatly reduced, she says.
A recent review of 22,403 publications
spanning 241 MPAs found that marine con-
servation efforts significantly enhance nat-
ural carbon removal and storage. The
effects that MPAs would have in the high
seas has been less well-studied, but it’s easy
to imagine the climate benefits.
Consider a whale. The 13 species of great
whales store an average 33 tonnes of carbon
in their bodies in a lifetime. Unlike terres-
trial animals, if a whale dies in the ocean, it
pulls that carbon down to the depths, where
it’s stored. Plus, in a process known as ‘the
whale pump’, whales dive down to feed and
then return to the surface to breathe. At the
surface, whales release nutrient-rich faecal
plumes. This buoyant waste is great for phy-
toplankton, the tiny creatures that capture
about 37 billion tonnes of CO2 a year and
produce at least 50% of the oxygen in our
atmosphere. Wherever whales go, phyto-
plankton blooms follow, Sadly, great whale
populations have been diminished after
decades of industrial whaling and so has
phytoplankton activity. The blue whale
population is now less than a tenth of what
it was during the 19th century. More whales
equal more phytoplankton, and if phyto-
plankton activity was increased by just 1%,
that would be equivalent in carbon capture
to the sudden appearance of two billion
trees. That’s just one way in which a healthy
ocean ecosystem helps. There are more.
However, the finalized treaty text is just
the beginning. Protecting ocean biodiver-
sity will require the dedication and focus of
governments for years to come. Though the
high seas are outside regional borders, let’s
hope nation states make them a priority in
the decades to come. ©BLOOMBERG

MY VIEW | GEnERal DIsEquIlIBRIum

India must re-arm G20 to reduce trade weaponization

Geopolitical jostling drowned out Prime
RAJRISHI SINGHAL Minister Narendra Modi’s inaugural mes-
sage at the foreign ministers’ meeting: “The
world looks upon the G20 to ease the chal-
lenges of growth, development, economic
resilience, disaster resilience, financial sta-
will be on the outcomes achieved at the G20
trade ministers meeting, whenever it is
scheduled. Before that comes the trade and
investment sherpa group, which meets
within a fortnight in Mumbai; the attendees
will be under pressure to keep dissensions at
pursuing bilateral trade deals; over the past
couple of months alone, India has signed
agreements with the US, Germany, Italy, and
the European Union, among others, to initi-
ate strategic trade agreements. One can see
this as a hedge, given risks to global trade
sion between the traditionally pugnacious
versus a combative upstart has reached a tip-
ping point, threatening not only global
trade, but also imperilling developing and
poor nations.
India’s response may not lie in respond-

T
he palpable tension at the conclusion
of two recent G20 meetings holds
pointers to the possible path ahead for
India’s geo-economics. If portents emerging
from the meeting of finance ministers and
central bank governors in Bengaluru (24-25
February) and the foreign ministers meeting
in Delhi (1-2 March) are anything to go by,
bility, transnational crime, corruption, ter-
rorism, and food and energy security…We
should not allow issues that we cannot
resolve together to come in the way of those
we can.” Collective approval proved elusive
when the final document inserted two para-
graphs from the 2022 Bali meetings
denouncing Russia’s role in the Ukraine war,
bay and achieve some progress on substan-
tive trade issues which can
then be successfully con-
verted by trade ministers It must use
into a consensual commu-
nique. But with rich G20 the presidency
members expected to
reprise their act of indigna-
to minimize
from hardening geopolitical postures. It is
unlikely that global trade
will wither away, but there
are bound to be structural
shifts in ambitions, part-
nerships and flows.
Trade, throughout his-
tory, has often been weap-
ing with equal aggression, given that its
share of global merchandise trade is less
than 2% of the global total and close to 4% in
services. The country’s best bet might still
lie in multilateralism, but that will require
close work with other poor and developing
nations. Two clear tasks stand out. One,
India’s rhetoric about ties with the Global

is a policy consultant and a

one of India’s key building blocks for future
economic growth, foreign trade, might face
senior journalist. His Twitter
handle is @rajrishisinghal.
renewed challenges.
The lack of a final consensus-based state-
ment in both meetings, with all parties set-
tling for a sub-optimal ‘Summary and Out-
come Document’ instead of the usual joint
communique, points to uncompromising
divisions as geopolitical anxieties take prece-
dence over consensus on key geo-economic
and governance issues. Unbridgeable
schisms between the US-led Western bloc
and Russia-China partnership may force
India, which holds the G20 presidency for
2023, to not only sharpen its balancing act
but also re-calibrate some of its ambitions.
prompting both China and Russia to with-
hold approval. It also detracted from the
main issues that a G20 gathering of finance
or foreign ministers is expected to discuss.
There is now some doubt over whether the
Indian presidency will be able, later this
year, to emulate Indonesia’s November
2022 diplomatic adroitness in extracting a
leadership consensus on a communique,
despite varying and antagonistic positions.
Truth be told, the G20 under India’s pres-
idency is nowhere near the pageantry that
had been promised. It is also unlikely that
the geopolitical contestations will vaporise
soon, which then situates India’s presidency
into a somewhat uncertain position. All eyes
tion again, these lengthen-
ing shadows threaten
geopolitical
hopes of reforming the
World Trade Organization
schisms and
(WTO), leave alone reviv- preserve global
ing global trade.
This also raises ques- trade vibrancy
tions about the future of
trade and what it means for
India. Trade plays a big role in India’s eco-
nomic growth aspirations. India has been at
the forefront of demanding WTO reforms,
which has also been echoed in past G20
communiques in Riyadh, Sorrento (Italy)
and Labuan Bajo (Indonesia). But, at the
same time, India has also been vigorously
onized. As a former colony,
India was left impoverished
by Britain’s extractive trade
practices. In later years,
post the WTO’s birth,
Western nations have also
weaponized trade—the
examples of EU’s unrea-
sonable non-tariff barriers,
or the US’s recent trade restrictions under
the rubric of ‘national security’, stand out.
Then along came China which, emulating
rich predecessors, leveraged its WTO mem-
bership and global trade biases to acquire
strategic heft and monetise its expansionist
ambitions. This competitive trade aggres-
South has often raced ahead of its ability to
deliver; time and again, India has found
itself isolated at multilateral bodies during
voting on crucial issues. Second, the gov-
ernment should recognize that the G20 is
neither a spectacle nor a vote-catcher; suc-
cess will require a nose to the grindstone
and not grandstanding. There is a likelihood
that some rich nations might want to under-
mine India’s G20 presidency by placing the
Russia-Ukraine war squarely in the middle
of all discussions, thereby precluding possi-
bilities of any substantive solutions. India
will have to utilize all the negotiating and
diplomatic skills at its disposal to ensure that
does not happen.
14 MoNDay, 13 March 2023
New Delhi BUSINESS OF LIFE WORKPLACE LIVEMINT.COM

Why women need to

support each other ISTOCKPHOTO

Women supporting
each other at work is
not just a feel-good
idea; it is a crucial
component of our
collective success.
By Dr Neerja Birla
feedback@livemint.com

I
n recent years, there has been a
growing movement of women
supporting women, and for good
reason. As women, we face
unique challenges in our per-
sonal and professional lives, and support-
ing each other can make a tremendous
difference. As a mental health advocate, I
have been a vocal supporter of this move-
ment. There are many benefits to women
supporting women. Some of the most
important include:
Building Confidence: When we receive
support from other women, we feel more
confident in ourselves and our abilities. future generations. incredibly empowering.
This confidence can help us overcome But how can we actively support other Amplify other women’s voices: When
self-doubt and imposter syndrome, allow- women? Here are a few strategies that you hear a female colleague make a valu-
ing us to pursue our goals with greater have worked for me: able contribution in a meeting or share
determination. Be a mentor: As women, we have a an insightful idea, make sure to acknowl-
Creating Connections: Women who responsibility to mentor and support edge it and give credit where credit is
support each other can form strong con- other women who are just starting their due. Amplifying the voices of other
nections that can last a lifetime. These careers. Share your knowledge, offer gui- women helps to create a culture of recog-
connections can be invaluable in both our dance, and provide encouragement. You nition and support.
personal and professional lives, providing never know Advocate for
us with a network of people we can turn to how much of an change: There
for advice and support. impact your We face unique challenges in are still many
Fostering Growth: When we support support can our personal and professional systemic barri-
each other, we create an environment have on some-
where we can learn and grow. We can one else. lives. Supporting each other can ers that prevent
women from
share our knowledge and expertise, offer- Build a com- make a tremendous difference advancing in
constructive feedback, and challenge munity: Seek their careers. As
each other to be our best selves. out other women, we
Challenging Stereotypes: When women in your industry and create a com- need to use our voices to advocate for
women support each other, we challenge munity of support. Attend networking change and speak up for causes that you
the stereotypes and biases that hold us events, join professional organizations, feel strongly about.
back. We can demonstrate that women and connect with other women on social
are capable of achieving great things and media. Having a network of women who Dr. Neerja Birla is founder & chairper-
can provide positive role models for understand your experiences can be son, Aditya Birla Education Trust