NEW DELHI, mumbAi, beNGALuru, kOLkAtA, cHeNNAi, AHmedAbAd, HyderAbAd, cHANdiGArH*, PuNe* VOL. 17 NO.

219

Thursday, September 14, 2023

Delhi concerned over Russian Offshore properties may face

livemint.com oil production cuts uP1 tax scrutiny uP1
 NEW DELHI, MUMBAI, BENGALURU, kOLkATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, pUNE*
Thursday, September 14, 2023
Think Ahead. Think Growth.
mint primer
Who is better at
making phones,
India or China?
BY SHOUVIK DAS
Apple’s iPhone 15 is the first made-in-India iPhone to be sold across
markets right from launch. Samsung made its cutting-edge foldable
phones in India, too. Is this a sign of India maturing as a
manufacturing destination, potentially rivalling China? Mint explains:
Haven’t iPhones been Has India caught up
1 made in India before?
While iPhones were first made in
2 with China?
Not entirely. Industry insiders say
India in May 2017, this is the first only the base iPhone 15 was made
time that India’s assembly lines locally. Pro iPhones are still
made the latest iPhone ahead of its assembled away from India. The
launch. Brands such as Apple primary reason for this is supply
typically get finished products at chains; for devices such as Pro
mass scale weeks ahead of launch, iPhone, Apple already has
which is why manufacturers in established partner-vendors in
China start making upcoming China operating at a certain
iPhones before launch. India’s balance of cost, scale, and
plants were so far making new availability. India is a relative
phones behind schedule. But this newcomer. While the advent of the
year, Foxconn’s Chennai plant likes of Foxconn has attracted
started making the iPhone 15 last many such firms, industry experts
month itself. This suggests India is say that the scale and seamlessness
now serving as a parallel of supply chain operations isn’t the
manufacturing market alongside
China—which has been a long-
same as that of China. Getting
there will take at least another two
term local manufacturing goal. years for India.
3 Do we make smartphones
or assemble them?
Manufacturers continue to import key
parts, such as cameras, display units and
chips, and assemble the phones here.
India, therefore, is a high-level assembly
destination. China, with established fabs
(plants that make chips and displays), has
the upper hand here. However, India is
looking to close this gap in a decade
through its production-linked incentives.
Does workforce skill Why aren’t these
4 play a role here?
Samsung made its latest foldable
5 iPhones cheaper?
Overall, India isn’t a cheaper
phones in India. But smartphone manufacturing destination than
manufacturing is largely China. But Apple’s iPhone sales
automated. Insiders say India’s continue to grow, and could jump
workforce can be—and is being— by nearly 40% this year. Experts
upskilled to be part of more say that this means Apple doesn’t
sophisticated assembly lines. One really need to lower prices—which
reason why Apple is not making its may also help their perceived
Pro iPhones in India is the value of brand halo. However, with
the supply chain—estimates peg growing disparity between pricing
the share of Pro iPhones at less in India versus the likes of the US
than one-fifth of all iPhone sales and UAE (where iPhones are
here. Unless this share grows, cheaper), Apple may have to revise
Apple can keep importing them its prices in the next two years,
for the local market, without once the iPhone breaches 10
realigning its supply chains. million units of annual shipments.
MINT PODCASTS
EARLY RETIREMENT THE RECRUITER’S CRAFT
In the latest episode of Why Not Mint When recruiters call you for a job
Money, Mint’s Sashind Ningthouk- profile, have you wondered how they
hongjam interacts get your contact,
with Karan Dutta, are aware of your
former chief busi- skill-sets, and even
ness officer of Axis know your peers
Mutual Fund and and seniors? In
offers listeners the today’s episode of
low-down on how The Working Life,
Dutta was able to retire at the age of Lohit Bhatia, president, Workforce
48. Scan the QR code to join us on this Management at Quess Corp maps out
insightful conversation. how to become an ace recruiter.
VOL. 17 NO. 219
QUICK EDIT
Biden’s job
is secure
Republicans in the US House of
Representatives, led by Speaker
Kevin McCarthy, are pursuing a
formal inquiry to impeach Pres-
ident Joe Biden. The charges
relate to business dealings by
the latter’s son, Hunter Biden,
and include lying about knowl-
edge of these, misuse of high
office and his “family members”
having got money from shady
foreign entities. So far, no hard
evidence of wrongdoing has
emerged. Also, his position is
politically secure. Even if a sim-
ple House majority goes against
him, his fellow Democrats con-
trol the Senate, where only a
two-thirds majority vote can
oust him from his job. Thanks to
this high bar, his predecessor,
Donald Trump, survived two
impeachment attempts. As the
White House contest in 2024 is
likely to be another Biden-ver-
sus-Trump affair, perhaps the
Republicans wanted the dubi-
ous-deed scales to appear less
uneven. In 1998, the rap that Bill
Clinton got for employing crea-
tive ambiguity in his testimony
of an affair was a novelty. Today,
a US impeachment is politics as
usual. It’s unfortunate that the
world’s most watched democ-
racy has reduced the gravity of
this tool. So long as elected
autocracy is a threat, such devi-
ces are needed.
MINT METRIC
by Bibek Debroy
In Mahoba, snake-charmers on a train,
Caused passengers grief and pain.
Not given enough money,
They thought loose reptiles were funny.
On Chambal Express, might happen again.
QUOTE OF THE DAY
I totally debunk and reject the
China-plus-one theory. That’s not
what is going to drive India. The
India of today stands on its own
feet. The India of today has
offerings for the rest of the
world...both for
investment and trade.
PIYUSH GOYAL
COMMERCE AND
INDUSTRY MINISTER
AI FOR ENTERPRISES
Leslie and Jayanth dissect the evolv-
ing multilingual AI landscape in
India, where giants
such as Meta’s
Seamless M4T clash
with startups such
as yellow.ai. Exp-
lore the aftermath
of Samsung’s Chat-
GPT ban, OpenAI’s enterprise-fo-
cused development, and the transfor-
mation of Generative AI.
 PLAIN FACTS

How engineering lost its

charm in India, in charts
BY SHUJA ASRAR & NITI KIRAN

I
ndia was once home to an estimated one in four students globally graduating with a science or engineering degree. But
Indians’ well-known love affair with engineering courses seems to be on the wane. Ahead of Engineer’s Day this Friday,
Mint looks at the falling enrolments, weak job placements and a disappointing employability rate of India’s engineering
graduates. To add to it, high financial costs and the rigour of a four-year course could also be deterring many from pursuing
this path. With growing challenges of new and disruptive technology, the stream needs to reinvent itself to keep students
relevant in the job market.

Changing demand
The engineering boom seen during the late 2000s and early 2010s is on a decline. In the last seven years, the number of engineer-
ing institutions has come down by 9%. In 2014-15, over 17% of undergraduate students were studying engineering; by 2020-21, the
share dropped to 12%.
Number of AICTE-approved engineering institutions Share of enrolled students in engineering &
7,000 technology programmes at undergraduate level (%) 28.6%
6,450
6,000
5,868 2012-13 17.3 Share of women
2013-14 who enrolled in
5,000
2014-15 B.E./B.Tech.
4,000 2015-16 courses in 2020-21,
3,000 2016-17 roughly similar to
2017-18 28.5% in 2012-13,
2,000 according to the All
2018-19
1,000 2019-20 India Survey on
2020-21 11.9 Higher Education.
0
2017-18 2023-24 0 5 10 15 20
Source: All India Council for Technical Education, All India Survey on Higher Education

Present and the future

Computer engineering is the most popular stream, followed by
traditional ones such as mechanical, electronics and civil.
However, with growing business complexities and rapidly
changing technology, focus is veering towards a different future.
A Naukri.com survey found growing proclivity towards artificial
intelligence and robotics in the job market.
Estimated enrolments in engineering, by stream, 2020-21 (in million)
Computer 1.12
Mechanical 0.63
Electronics 0.62
Challenging path
Civil 0.49
From coaching for entrance exams to getting placed, the
process to become an engineer in India is daunting and Electrical 0.38
ruthless. Fewer students are passing their course (66% of
the undergraduate students enrolled in 2018-19 passed in IT 0.22
2022-23, down from 85% the previous year). The number of Architecture 0.08
students getting placed has been stable, implying no growth
in the influx of engineering graduates into the job market. Chemical 0.06
Number of undergraduate students who passed/got placed in Agriculture 0.02
engineering and technology programmes, annual
800,000
Aeronautical 0.02
Passed Data is across levels, including undergraduate, postgraduate, PhD and diplomas.
Source: All India Survey on Higher Education (2020-21)

600,000
Preference for upcoming streams of engineering (in %)

Biomedical
400,000 engineering
Responses to the question: 4
"Which of the upcoming
Aerospace
engineering fields excites
engineering
11
200,000 you the most?" The survey
Placed covered 52,114 registered 67
users of Naukri.com, and AI and
was held between Renewable 17 robotics
0 28 August and energy
7 September.
2017-18 2022-23
Source: Naukri.com
Source: AICTE

Labour realities
When it comes to taking jobs, information technology and core engineering roles are the most sought-after fields, showed IIT-Delhi’s
placement records for 2021-22. However, despite a huge talent pool, more than 40% of Indian engineers remain unemployable,
according to an annual survey. Poor employability of engineering graduates is also taking them closer to non-core jobs.
Sector-wise distribution of student placements
in IIT-Delhi (2021-22, in %)
Other
Information
Finance technology

Analytics
2 8
9
30

Management 10

Share of 'employable' final-year B.E./B.Tech. students (in %)

13 By year
57.1 55.2 57.4
Consulting 28 50.7 51.5 49.0 46.8
Core (Technical)
Source: IIT-Delhi, annual report

Nature of job placements taken by IIT-B graduates

between 2014 and 2018
Core Non-core

Aerospace engineering 13.0 87.0

Metallurgy &
material science 13.1 86.9
2017 2018 2019 2020 2021 2022 2023
Engineering physics 24.3 75.7
By stream
Civil engineering 31.0 69.0 Information technology 65.0
Chemical engineering 34.9 65.1 Computer science 62.7
Electronics & communi-
Mechanical engineering 45.4 54.6 cation engineering
60.2
Electrical engineering 53.8 46.2 Electrical engineering 58.0
Computer science
82.7 Mechanical engineering 43.3
and engineering 17.3
A core job is one that is related to the branch of study. Civil engineering 34.4
Data for select departments.
Source: "Placements, internal ‘brain drain’ and academic life of Based on the Wheebox National Employability Test, which examines work-readiness of
undergraduates at the Indian Institute of Technology, Bombay", study by final-year students. A student who scores 60% or more in the test is said to be employable.
Namit Agrawal, Sailakshmi Sreenath, Shishir K. Jha and Anurag Mehra Source: India Skills report 2023, Wheebox
PARAS JAIN/MINT

PEANUTS by Charles M. Schulz

 NEw DElhI, MuMBAI, BeNGALuRu, kOLkATA, cHeNNAI, AHMedABAd, HydeRABAd, cHANdIGARH*, PuNe*
Thursday, September 14, 2023
Delhi concerned over
Russia oil output cuts
Indian state-run companies have invested $16 bn in Russian energy assets
Rituraj Baruah & Utpal Bhaskar
NeW deLHI
I
ndia is concerned about
Russia’s successive crude
production cuts to com-
ply with the Opec+ agree-
ment by curtailing pro-
duction even from assets
where Indian state-run firms
are stakeholders, two people
close to the matter said.
“The Russians have
reduced production as part of
Opec+. However, India is not
a part of it, yet production is
being reduced wherein for-
eign entities are partners.
With Russian production
coming down, the volume of
oil available in the global
market has also come
down. With Iranian and Ven-
ezuelan oil off the table, the
world is being starved of oil.
We have raised the issue at
several levels,” one of the two
people said on condition
of anonymity.
State-run ONGC Videsh
Ltd (OVL), Bharat Petrore-
sources Ltd, Indian Oil Corp.
Ltd (IOCL) and Oil India Ltd
DON’T MISS
Nifty closes above 20,000 mark
After a weak start, Indian stocks rebounded
on Wednesday, with the Nifty gaining 0.38%
and closing above the 20,000 mark for the
first time.
Offshore properties GE Health plans
may face scrutiny mfg hub in India
Gireesh Chandra Prasad
gireesh.p@livemint.com
NeW deLHI
R M
eal estate assets hidden
abroad may come under
scrutiny after a global
framework of real-time data
sharing by national authorities
takes effect, marking the next
frontier in governments’
efforts to combat tax evasion
and money laundering.
The Organisation for Eco-
nomic Cooperation and
Development’s (OECD) report
to the leaders of G20 nations
at the New Delhi summit has
made proposals with far-
reaching implications for tax
compliance related to over-
seas property holdings. The
recommendations were made
at the request of the Indian
presidency.
Go First lenders jittery on interim finance
Anirudh Laskar &
Shayan Ghosh
MuMBAI
L
enders to Go First have
turned wary of extending
more loans to help the
grounded airline return to
skies, two people aware of the
matter said, given the pro-
tracted legal battle between
the company’s lessors and the
resolution professional. The
banks had agreed to grant an
interim financing of ₹600-
700 crore to help the low-cost
airline take off with a lean fleet
and stay afloat.
“The lenders have already
disbursed an interim financing
of ₹100 crore to Go First,” one
of the two people said on con-
dition of anonymity. However,
lessors’ resistance to the reso-
lution professional accessing
the 52-odd aircraft until
repayment of dues has stalled
the plan, leaving lenders wary
livemint.com
CRuDE ImPaCt
The country imports more than 80% of its oil requirements,
and the production cuts have led to a surge in oil prices.
India's top 5 sources of oil imports Indian crude basket price
in April-June 2023 (in $ bn) in 2023-24 (in $/bbl)
12.4 100
91.1
90
83.8
6.6
5.5 80
1.7
1.5 70
60
Russia Iraq Saudi Arabia UAE US Apr Sep
Source: Ministry of Commerce and Industry, Petroleum Planning and Analysis Cell
PAIN POINT
INDIa has voiced It is the world’s OIl price rise can
concerns about third-largest oil raise India’s import
rising oil prices importer bill, stoke inflation
SARVESH KUMAR SHARMA/MINT
(OIL) have invested a total of orneft. Also, another consor-
$16 billion in Russia. While tium comprising OIL,
OVL, the overseas unit of Oil IOCL and Bharat Petrore-
and Natural Gas Corp. sources owns 29.9% of LLC
(ONGC) Ltd, owns a 20% stake Taas-Yuryakh.
in the Sakhalin-1 hydrocarbon A second government offi-
block, a consortium of OVL, cial, however, said India is not
OIL, IOCL and Bharat Petro- “unduly” worried about the
resources own 49.9% in Ros- development. “Everybody
neft’s subsidiary CSJC Vank- will cut production because
‘Banks must return asset papers’ ‘Byju’s invested $533 mn in debt’
RBI said regulated entities have to release Byju’s on Wednesday disclosed that
original property documents to retail loan it invested more than $500 million in
borrowers within 30 days of full repayment, debt instruments, responding to
>P4 and any delay would attract a penalty. >P6 investor concerns.
Mihir Mishra
mihir.mishra@livemint.com
NeW deLHI
edical technology
giant GE HealthCare
plans to scale up
manufacturing in India and
has chosen the country as
part of its strategy to diversify
beyond China, a top execu-
tive said.
An official announcement
Cross-border property holdings on the manufacturing boost is
are rising, cautioned OECD. AFP expected soon.
“India for India makes
OECD cautioned that cross- sense. And China for the
border real estate holdings world used to be the biggest
have risen, and proposed title. Today, I want to say
short- and long-term models China and India for the world,
for tax transparency on such not only China. We need to
assets held abroad. One of the balance. You don’t put all
models is the traditional data- your eggs in one basket. Now,
here’s the point. India will
TURN TO PAGE 6 need to make sure the infra-
The lenders agreed to grant interim financing of ₹600-700 crore
to help Go First take off with a lean fleet and stay afloat. PTI
of extending any further on more funds after the (Delhi)
interim credit, according to high court decides on the liti-
the two people. gation with aircraft lessors,”
The planned interim said the first person who works
financing was meant to help with one of the lenders.
Go First meet basic working The airline owes over ₹6,521
capital requirements and crore to financial creditors,
resume flights with 15-20 air- including Central Bank of
craft so it generates cash to India, Bank of Baroda, IDBI
repay dues. Bank and Deutsche Bank. It
“The lenders will take a call has also defaulted on pay-
VOL. 17 NO. 219 Rs. 10.00 . Price with Hindustan Times Rs. 15.50 18 PAGes
Chipmaker Nvidia’s India Special session to debate
playbook uP10 bill on ECs uP2
they want the price to rise, but
they also need to sell. We raise
it to the Russians all the time,”
the person said, also on condi-
tion of anonymity.
India, the world’s third-
largest oil importer, has
voiced concerns about rising
oil prices amid a precarious
global economic recovery.
India imports more than
80% of its oil requirements,
and the production cuts have
contributed to a surge in oil
prices. India is particularly
vulnerable as any increase in
global prices can affect its
import bill, stoke inflation
and widen trade deficit.
India’s import of crude oil and
petroleum products rose
29.5% to $209.57 billion in
2022-23.
Queries emailed to the
spokespeople for the Russian
embassy in New Delhi, India’s
ministries of external affairs,
and petroleum and natural
gas, Rosneft, OVL, Bharat Pet-
roresources, IOCL and OIL on
6 September remained unan-
TURN TO PAGE 6
>P5
Elie Chaillot, president & CEO,
intercontinental, GE HealthCare.
structure exists for these
companies to grow. We will
have much more manufac-
turing,” said Elie Chaillot,
president and chief execu-
tive, intercontinental, GE
HealthCare.
TURN TO PAGE 6
ments of ₹1,202 crore to ven-
dors and ₹2,660 crore to les-
sors. Despite the lenders’ offer
of interim finance, the Wadia
Group-founded airline and the
lessors continue fighting in the
Delhi high court over inspec-
tion, access and resumption of
Go First’s grounded fleet.
“The entire resolution pro-
cess has been frustrated by the
legal roadblocks. A stronger
government stance is crucial
to sustain the viability of insol-
vency law,” the second said on
condition of anonymity. “A law
on resolution process is
redundant if it is plagued by
legal cases that keep going on
for years,” the person added.
According to the second
person, financing will depend
on the promptness of the court
ruling or if the government
takes an immediate “serious
step” to avoid further delay in
resumption, which is not only
TURN TO PAGE 6
02 ThurSDay, 14 SepTember 2023
New Delhi ECONOMY & POLICY LIVEMINT.COM

FAME case:
m MINT SHORTS
Government launches Skill India
Nod for eCourts 3rd phase, E-2W firms
Digital platform
New Delhi: The government on Wednesday launched the Skill
India Digital Platform to bring all skilling initiatives under a sin-
gle umbrella and provide skill development and entrepreneurial
7.5 mn free gas connections could face
legal action
support to people. More than 264 skilling courses from 42,623
centres from across the country will be available under the plat- PTI
form, which will also provide opportunities for job exchange, feedback@livemint.com
apprenticeship, and entrepreneurship. PTI Cabinet also clears Cyprus-based investor’s ₹9,589 crore deal for 76.1% in Suven Pharma
T
he government is explor-
ing legal options against
Airbus hands over first Rituraj Baruah & Subhash Narayan The total cost would be ₹2,200 per electric two-wheeler
connection of 14.2 kg single bottle con- companies for not complying
C-295 aircraft to IAF NEW DELHI
nection and 5 kg double bottle connec- with the FAME II scheme

T
PTI
he Union cabinet on tion. The cost of a 5 kg single bottle norms, according to a senior
Wednesday approved ₹7,210 connection would be ₹1,300. government official.
crore for the third phase of As per the existing modalities of The Centre has sought Rs
the eCourts project, which Ujjawala 2.0, the first refill and stove 469 crore from seven electric
aims to improve access to will be provided free of cost to benefici- two-wheeler makers for claim-
justice using technology. The cabinet aries. ing incentives while not com-
also allocated ₹1,650 crore to provide A targeted subsidy of ₹200 per 14.2 plying with the Faster Adop-
7.5 million additional free cooking gas kg LPG cylinder for up to 12 refills per tion and Manufacturing of
connections. year is being provided to PMUY con- Electric Vehicles (FAME II)
In another meeting, the Cabinet sumers. Recently, the cabinet had scheme norms.The govern-
Committee on Economic Affairs approved a reduction of ₹200 in LPG ment is seeking a refund of
cleared a proposal for foreign direct prices.The proposal on FDI by Cyprus- incentives from Hero Electric,
investment of up to ₹9,589 crore by based Berhyanda Ltd involves acquisi- Okinawa Autotech, Ampere
Seville: Airbus Defence and Space on Wednesday handed Cyprus-based Berhyanda Ltd in Suven tion of up to 76.1% equity shares of EV, Revolt Motors, Benling
over to the Indian Air Force the first of 56 C295 transport Pharmaceuticals Ltd. Suven Pharmaceuticals Ltd, a public India, Amo Mobility, and Lohia
aircraft, kick-starting their delivery under a ₹21,935-crore Briefing the media, information and limited Indian pharmaceutical com- Auto.
project that was sealed two years back as part of an overall broadcasting minister Anurag Thakur Union minister for information & broadcasting Anurag Thakur briefs the media on pany listed on the NSE and the BSE, by As per the official, notices
aim to modernize India’s air assets. Chief of Air Staff Air said the eCourts project is a central the Cabinet decisions, in New Delhi. PTI way of transfer of shares of from exist- have been sent to the compa-
Chief Marshal V.R. Chaudhari received the aircraft in the scheme that will run for four years ing promoter shareholders and public nies and, so far, only Revolt
southern Spanish city of Seville. PTI starting 2023. including legacy records and by bring- nership of the department of justice, shareholders through a mandatory Motors has offered to refund
The eCourts project, part of the ing in universalization of e-filing and the ministry of law and justice, and the open offer. The aggregate foreign the amount.“We have sent
national e-governance plan, has been e-payments. “It will put in place intelli- Supreme Court of India in a decentral- investment may increase up to 90.1% in them notices. So far, only
Trai eases audit compliance under implementation since gent smart systems, enabling ized manner through the Suven Pharmaceuticals Ltd. Revolt has offered to pay...oth-
2007 for information and data-based decision-making respective high courts. It The proposal has been eval- ers have not responded,” the
burden for LSAs communications technol- for judges and registries would make the system uated by Sebi, RBI, CCI and official said.He noted that the
New Delhi: Telecom regulator Trai has reduced audit compli-
ance of licensed service areas to once a year from four times ear-
ogy enablement of the
Indian judiciary. The ₹7210
allocated for
while scheduling or pri- “more accessible, afford-
cr oritizing cases. The main able, reliable, predicta-
for additional
cr other agencies.
The cabinet approved ₹1650 deadline is almost over, and
next week, the government will
lier but it will cover maximum tariff offerings, including related project’s second phase objective of Phase-III is ble, and transparent for three Memorandums of be making some decisions.“We
to international roaming, according to new regulations on quality concluded this year. eCourts to create a unified tech- all stakeholders”, the free LPG Understanding (MoU) for are examining legal options,”
of service.The new regulations will result in reduction of audit “Phase-III of the eCourts Phase-III nology platform for the statement added. connections cooperation in the field of he said when asked about the
burden by almost 75% and enhance ease of doing business project is rooted in the phi- judiciary, which will pro- The other decision of the sharing successful digital action being considered by the
(EODB), Trai said in a release on Wednesday. PTI losophy of ‘access and inclu- vide a seamless and paperless Union cabinet was the exten- solutions implemented at government.An investigation
sion’,” an official statement said. interface between the courts, the sion of the Pradhan Mantri population scale for digital trans- by the heavy industries minis-
Phase-III aims at bringing “ease of litigants and other stakeholders,” the Ujjwala Yojana for releasing 7.5 million formation. The MoUs are with Arme- try has revealed that these
Low-pressure area to cause rain justice” by moving toward digital, government said. LPG connections over three years from nia, Antigua & Barbuda, and Sierra companies have availed fiscal
online and paperless courts through The centrally sponsored scheme is FY24 to FY26 with an additional outlay Leone. incentives under the scheme
in central India till Saturday digitization of entire court records being implemented under a joint part- of ₹1,650 crore. rituraj.baruah@livemint.com by violating the norms.
HT

Tesla may source parts worth ‘Higher stocks at coal mines’

$1.9 bn from India this yr: Goyal Staff writer
feedback@livemint.com
power demand neared 240
GW, and the peak shortage
NEW DELHI shot up to 10.75 GW.
Staff writer investment and trade.’’ The power ministry had

T
feedback@livemint.com Goyal added that India pro- he stock of coal at mines recently directed all coal-
NEW DELHI vides them a good business and transit has increased based power generating com-
New Delhi: The low-pressure area that formed on environment, skills, manage- 39% over last year, coal panies to blend 4% imported

E
Wednesday lies over North-west and West- central Bay of lectric vehicle maker
Bengal, India Meteorological Department said. As it is likely Tesla is looking to source
to become more marked and move across Odisha and components worth
Chhattisgarh during the next three days, central India is around $1.9 billion from India
expected to receive very heavy rainfall. PUJA DAS this year, commerce and
industry minister Piyush
Goyal said on Wednesday.
Media trial may deflect from ‘cause The minister said that going
forward, demand for electric
of justice’, says Supreme Court vehicles will increase and help
New Delhi: Media trials may result in “deflection of cause the sector grow.
of justice”, the Supreme Court observed on Wednesday as it “Tesla already last year
directed the union home ministry to prepare within three bought $1 billion of compo-
months a comprehensive manual on how police should brief nents from I think all of you
journalists about criminal cases. The top court said there is sitting here,” he told members
an urgent need for a standard operating procedures on how of the Automotive Component
journalists should be briefed as there has been an upsurge in Manufacturers Association of
reporting on criminal offences in print, electronic and social India (ACMA).
media since the last guidelines were issued by the ministry “I have the list of companies
in 2010. PTI who supply to Tesla. This year
their target is nearly $1.7 bil-
lion or $1.9 billion (is) what
Icra revises growth estimates for they mentioned,’’ he said at an
annual session of ACMA.
domestic steel sector to 9-10% The electric vehicle (EV)
New Delhi: Rating agency Icra on Wednesday revised upward market in India is on the rise
its growth estimate for the domestic steel industry to 9-10% this amid rising fuel costs.
fiscal, on account of robust government capital expenditure. It With over 2.8 million EVs
had estimated the steel industry to grow in the range of 7-8% at already on its roads, India’s EV
the start of the current fiscal year, the rating agency said in a state- market is poised for a stagger-
ment. “Icra has revised the FY2024 domestic steel demand ing 94.4% CAGR growth by
growth forecast,” it added. PTI 2030. As global and local auto-
Commerce and industry
minister Piyush Goyal.
makers intensify their pres-
ence in this segment, the valu-
ation of India’s EV market,
which stood at $3.21 billion in
2022, is expected to soar to
$114 billion by 2029.
Asked about foreign firms
looking to invest in India as
part of their China-plus-one
strategy, Goyal said global
companies are coming to India
because of its attractiveness.
‘’I totally debunk and reject
the China-plus-one theory.
That’s not what is going to
drive India...India of today
stands on its own feet. The
India of today has offerings for
the rest of the world, both for
rial talent, a big market, and
demand generated by 1.4 bil-
lion people.
However, foreign direct
investment (FDI) equity
inflows dropped 34% to $10.9
billion during the June quarter
from the year-ago period, as
per official numbers. The drop
was primarily due to a slow-
down in the West.
HT ‘’It’s a rules-based economy,
it’s a young democracy, one of
the fastest growing large econ-
omies. All of this makes it a
compulsive investment desti-
nation.
‘’Therefore, companies
around the world have gone
beyond the China-plus-one
story, they have gone beyond
the ABC philosophy of ‘any-
thing but China’, they have
gone beyond friend-shoring or
near-shoring and are looking
at India as a trusted partner.”
In many cases, for example
taxis, and public transport
buses, India is already seeing
electric vehicles becoming a
compulsive investment case.
(With PTI inputs)
minister Pralhad Joshi said on coal till March 2024.
Wednesday, amid concerns The power ministry in a letter
over stocks being too low to said that despite the increase in
meet the power demand. domestic coal supply during the
Writing on X (formerly Twit- first quarter of FY24, it fell short
ter), the minister said state- of meeting the requirement.
owned Coal India Ltd’s produc- Coal minister Pralhad Joshi. HT In August, the gap between
tion has increased 12.8% so far coal consumption at these
in the July-September quarter so far to 29.6 million tonnes. domestic coal-based plants
to 123.4 million tonnes. During the same period last and the receipt of domestic
In the first quarter of the fis- year, it’s production stood at coal was about 200,000 ton-
cal, its production stood at 26.3 million tonnes. nes per day, it had said.
175.5 million tonne, 9.8% The minister further said Following the directive to
higher compared to the corre- that the growth momentum continue blending imported
sponding period last fiscal. will be sustained and the coal coal till March, the coal ministry
“Record coal stock would in a statement on 5 September
production and The minister said increase in the said that there is adequate avail-
record coal sup- Coal India’s coming months. ability of coal for thermal plants.
plies in the coun- production has Growth in pro- The ministry said that the coal
try have helped increased duction comes at dispatch to the power sector has
us maintain suffi- a time when witnessed a growth of 5.8% to
12.8% so
cient coal stock power demand in 324.50 million tonne during the
during the mon- far in the the country has current financial year (FY24).
soons. As a result, July-Sep quarter touched new “The efficient coal supply to
coal stock at mine highs. the TPPs (thermal power
end and in transit The peak plants), has ensured robust coal
have increased by 39% over power demand has touched a stock position at various pit-
last year,” he said. new record of 239.9 GW, heads. This indicates both suf-
He also said that production against the Central Electricity ficient coal stock and the effi-
at Singareni Collieries Company Authority’s (CEA) estimate of ciency of the coal supply chain
Ltd (SCCL) has increased 12.4% 230 GW this year. in ensuring seamless distribu-
in the July-September quarter On 1 September, the peak tion across the country,” it said.

Special session to debate bill on ECs, discuss ‘parliamentary journey’ CORRECTIONS AND
CLARIFICATIONS
Mint welcomes comments,
Smriti Kak Ramachandran all political parties on Sunday, Two more bills that were The bill on the selection of Union cabinet minister who suggestions or complaints
letters@hindustantimes.com a day before the start of the introduced in the previous election commissioners is would be nominated by the about errors.
NEW DELHI special session, even as Oppo- session—the Post Office Bill, likely to prove contentious. Prime Minister.
Readers can alert the
sition parties slammed the 2023 and the Chief Election On 10 August, the Centre A Constitution bench ruling
newsroom to any errors in the

T
he government on
Wednesday listed a raft
of key bills, including
one to change the way election
commissioners are picked, for
the 18-22 September special
session of Parliament.
Giving the first glimpse of
the legislative agenda, the
Centre said the special sitting
will also discuss India’s 75
years of parliamentary jour-
ney.
The announcement came
hours after the Centre called a
meeting of the floor leaders of
Centre for not sharing the rea-
son or the agenda for the ses-
sion.
To be sure, the legislative
agenda for the special session
—which the government
announced in a surprise move
two weeks ago—need not be
limited to the announcements
made on Wednesday and can
be expanded at any time.
Bulletins released by the
Lok Sabha and Rajya Sabha
listed a discussion on the “par-
liamentary journey of 75 years
starting from Samvidhan
Commissioner and Other
Election Commissioners
(Appointment, Conditions of
Service and Term of Office)
Bill, 2023—were listed. These
have also been listed for the
Lok Sabha as and when the
upper house clears them.
The bill on the selection of election commissioners is likely to In the Lok Sabha, the gov-
prove contentious. PTI ernment listed two bills—the
Advocates (Amendment) Bill,
Sabha—achievements, experi- ernment listed the Repealing 2023 and the Press and Regis-
ences, memories and learn- and Amending Bill, 2023, tration of Periodicals Bill,
ings” on the first day of the ses- which was passed by the Lok 2023—that were passed by the
sion. Sabha in the monsoon session, Rajya Sabha in the monsoon
In the Rajya Sabha, the gov- for consideration and passage. session.
tabled in the Rajya Sabha a
proposed law that sought to
effectively displace a Supreme
Court ruling that divested the
executive of the absolute
power to appoint the CEC and
ECs by including the Chief
Justice of India (CJI) as a mem-
ber of the selection panel.
According to the bill, the
President will ratify the
appointments following the
recommendation of a selec-
tion body consisting of the
Prime Minister, the Leader of
the Opposition (LoP) and a
on 2 March held that the CEC paper by emailing us, with your
and ECs will be chosen by a full name and address to
panel made up of the PM, the feedback@livemint.com.
LoP (leader of the single larg-
est Opposition party in Parlia- It is our policy to promptly
respond to all complaints.
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LIVEMINT.COM DEALS, TECH & STARTUPS
m MINT SHORTS ‘Infosys has outlined
ThinkMetal raises $300K pre-seed
funding from 100X.VC, others
Bengaluru: Deeptech hardware startup ThinkMetal secured
$300,000 (₹2.5 crore) in a pre-seed funding round, led by early-
stage venture capital backer 100X.VC. The round also saw par-
8 broad areas for AI’
ticipation from listed company SAT Industries; angel investors Shraddha Goled
KRS Jamwal and Uday Sodhi. Founded in 2021 by Sabyasachi shraddha.goled@livemint.com
Ghosh and Arushi Sharma, ThinkMetal is a startup that develops BENgaluru
its hardware and software solutions for end-to-end metal 3D
I E
printing. “We aim to target tier-I toolmakers and prototype nformation technology services leader
manufacturers serving original equipment manufacturers Infosys Ltd recently said it is taking an
(OEMs). This strategic approach translates to a total addressable artificial intelligence (AI)-first
market (TAM) of approximately $700 million. We are currently approach for all its business and opera-
improving our capacity to do trials and pilots with various man- tional needs. At its first quarter earn-
ufacturing companies,” said Ghosh, co-founder and chief exec- ings announcement, the company also
utive officer, ThinkMetal. K. AMOGHAVARSHA committed to train 40,000 employees on
generative AI skills. In an interview, chief
technology officer Mohammed Rafee Tar-
Salt Oral Care secures pre-seed afdar explained Infosys’ AI strategy. Edited
excerpts:
funds from Viraj Doshi, others
ISTOCK
What is Infosys’ AI-first approach?
We have been working on AI for some
time, with a lot of our initial investments in
technologies like machine learning and
deep learning. So, while a lot of work or the
building blocks for
AI were already in
place, last year, we
saw the potential of
the foundational models. The AI-first strat-
egy simply means that we are reimagining
everything that we do from a business
standpoint to incorporate AI.
Bengaluru: Oral care and hygiene brand Salt Oral Care There has not been a change in strategy.
raised an undisclosed amount in a pre-seed funding at a val- We were always focused on AI and that
uation of $2.1 million (₹18 crore). The round was led by continues. It is just that with generative AI
orthodontist Viraj Doshi and also saw participation from a and with the launch of ChatGPT, AI has
host of other undisclosed angel investors. The brand will become consumerized which means any-
use the fresh funding to improve its manufacturing capabil- body, even without the knowledge of AI,
ities as well as direct it towards marketing initiatives. It also could use it. The last time this happened
plans to expand its product offerings as well as its geograph- was with mobile technology and that led to
ical reach. Founded by Karanraj Kohli and Viraj Kapur, Salt a significant push on mobile technology
Oral Care offers a range of products which it claims are and the same is happening now with AI.
made from all-natural ingredients sourced from forests and This now has become a boardroom agenda
other organic sources. K. AMOGHAVARSHA and hence, we are also amplifying the
potential of the technology and how it can
influence business.
AWS teams up with Isro, IN-SPACe Is Infosys building its own founda-
tional models?
for innovation in space sector At this point, we are creating fine-tuned
Bengaluru: Amazon Web Services (AWS) India has signed a models, which involves taking open mod-
strategic memorandum of understanding (MoU) with the els and applying an approach called narrow
Indian Space Research Organisation (Isro) and the Indian transformer to suit our needs. Creating
National Space Promotion and Authorization Centre specialized fine-tuned models has been a
(IN-SPACe). Under the collaboration, the three entities will good fit for a lot of our projects. In terms of
support space-tech startups, independent researchers, and creating our own foundational or base
research institutes access to cloud computing resources. AWS models, we are still exploring that option,
will provide eligible space startups with relevant tools, resour- but a lot of needs are met through the fine-
ces, and expert technical support at no cost through the AWS tuned approach today.
Activate programme. SHRADDHA GOLED What kind of value or return on
ThurSDay, 14 SepTember 2023
New Delhi
Kae raises $50 mn,
marks final close
of Winners Fund II
Aman Rawat
aman.rawat@livemint.com
NEw DElhI
arly-stage venture capi-
tal firm Kae Capital,
which has backed com-
panies like consumer nutri-
tion platform Healthkart,
on-demand manufacturing
network Zetwerk, and lend-
ingtech startup Loantap,
among others, has made the
final close of its Winners Fund
II (KWF II).
The VC firm said it has
raised $50 million (around
₹410 crore) for the Winners
Fund II, which was launched
in mid-2020.
For this vehicle, it raised
capital from Velo Partners,
KKR’s co-founder and co-ex-
ecutive chairman Henry Kra-
vis, 360 ONE (formerly IIFL
investment (RoI) is Infosys observing formance optimization, safety testing, and Wealth & Asset Manage-
with its focus on AI at this stage? adherence to responsible AI guardrails. ment), Tata 1MG’s co-founder
While I cannot share specific metrics in What are the changes in the hiring and chief executive Prashant
terms of RoI, I can tell you that we have trends at Infosys against this back- Tandon, Tata 1MG’s chief
recognized eight broad areas for AI appli- drop? operations officer Tanmay
cations that include software engineering, We are more focused on creating tech Saksena, HealthKart founder
IT operations, business operations, cus- talent that includes these AI builders and Sameer Maheshwari, Max
tomer service, advisory service, contact masters who can work with our clients on Healthcare founder Abhay
‘
centre, sales and marketing, employee specific projects. In terms of general Soi, and DSP Group
experience and learning. trends, AI would be lever- founder Hemendra
We have seen some early aged to amplify and Kothari.
successes and results, but AI will be leveraged to improve the skills of Ajanta Pharma
we’ll have to wait to see a amplify and improve human workers. We will managing director Yogesh
broader impact. the skills of human also see the creation of a Agrawal, Sanket and Apurva
Infosys said it is train- lot of new roles. Parekh of Pidilite Industries
ing 40,000 employees workers. We will also Beyond AI, what are and VM Thapar Family Office
in generative AI. What see the creation of the other areas of focus also joined the fund as its lim-
kind of training are a lot of new roles for Infosys in emerging ited partners.
you referring to?
Mohammed Rafee Tarafdar
technologies? The fund is looking to
We plan on eventually AI builds on to the invest in 20 companies,
having three levels of ena-
Chief Technology Officer
entire digital and cloud which are a part of its previous
blement. The first one is transformation. Beyond funds. It will participate along
training people on what is generative AI, that, the metaverse is something that we with growth stage funds in
what can be done with this technology, and explored last year, including launching a Series B, C and D rounds of
what are the use cases. The second set metaverse foundry. Development in over- such companies. It has
would include training AI builders who will all AI technologies will also accelerate already invested in compa-
be using a lot of AI services that are already innovation in this field. nies like HealthKart, Wysa,
available to create specific AI-first solu- Sustainability and green IT are another Brightchamps and Disprz
tions. Lastly, we will have AI masters with big area of focus for us as our clients begin from this fund.
deep AI skills that span creating pre- to activate a number of environmental, The VC firm, however, will
trained and fine-tuned models, model per- social, and governance (ESG) guidelines. look to make investments in
03
The fund is looking to invest in
20 companies, which are a
part of its previous fund. ISTOCK
companies outside of its port-
folio as well. “Being pioneers
of early-stage investing in
India, we’ve seen the ecosys-
tem grow and see enough
merit in being involved for as
long as possible in a com-
pany’s lifecycle. We have
launched this fund in order to
continue backing our best
founders, alongside other
successful founders in the
ecosystem, who are not yet a
part of the Kae fam-
ily,” said Sasha Mir-
chandani, founder
and partner at Kae
Capital.
Kae, which was set up by
Mumbai Angels co-founder
Sasha Mirchandani in 2012, is
a sector-agnostic venture
capital firm which invests in
pre-seed to pre-series A fund-
ing stages.
It is an early-stage investor
in many companies such as
Porter, Zetwerk, HealthKart,
Nazara, and Tata 1MG, among
others. To date, it has invested
in 81 startups, with a portfolio
enterprise valuation of $8.76
billion.
It has also made 14 exits. It
has offices in offices in Mum-
bai and Bengaluru.
04 ThurSDay, 14 SepTember 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 PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

67,466.99 0.37 20,070.00 0.38 17,526.75 0.38 45,655.45 0.31 19,977.80 0.36 32,147.31 0.19 37,296.78 0.85
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

67,221.13 67,188.64 19,993.20 19,989.50 17,460.55 17,458.40 45,515.35 45,496.45 19,905.20 19,900.85 32,084.93 31,988.44 36,982.74 36,888.65
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

67,565.41 67,053.36 20,096.90 19,944.10 17,540.85 17,364.35 45,735.75 45,068.15 20000.50 19,844.75 32,213.09 31,644.38 37,425.97 36,549.37

m MINT SHORTS
Saudi Arabia’s production cuts
Inflation eases, but not RBI’s task
threaten surge in oil price: IEA Rupali Sarkar
Mounting pressures pointing in September, after August trajectory.
Oil supply cuts by Saudi Arabia and Russia will create a feedback@livemint.com was the driest month on record. This, Amid the clouds, a silver lining has
“significant supply shortfall” and threaten a renewed CPI inflation remains elevated and poses a risk to RBI’s Q2FY24 projection. along with lingering worries about been the sustained broad-based sof-

T
surge in price volatility, the International Energy Agency he significant easing in pric-
warned. Global oil markets face a deficit of 1.2 million bar- ing pressures in August
rels a day during the second half of 2023 following last comes as a big relief, espe-
week’s announcements by the OPEC+ leaders that they’ll cially after the sharp spike
extend cutbacks to the end of the year, the agency said. seen in July. The consumer
It’s smaller than projected last month, as a result of his- price index (CPI) inflation dipped to
torical changes to demand estimates, but still poses risks 6.8% year-on-year in August from a
for consumers. Even if the two producers were to relax 15-month high of 7.4% in the previous
their curbs in early 2024, oil inventories will be severely month. Note that this is the first
depleted, leaving prices vulnerable to shocks, the IEA sequential drop in headline CPI in
said. Brent futures climbed to 10-month high above $92 2023.
a barrel on Tuesday. “The market is really tightening in But when looking at it from the cen-
the second half of the year,” Toril Bosoni, the head of the tral bank’s lens, there are some unset-
IEA’s oil market division, said on Bloomberg TV on tling revelations. True, the recent dip
Wednesday. BLOOMBERG in inflation is sizeable and more than
market expectations. Notwithstanding
this, the CPI trajectory may not align
well with the Reserve Bank of India’s
(RBI’s) projected inflation path.
For perspective, the CPI inflation in
the first two months of the September
quarter (Q2FY24) has averaged higher
than the RBI’s projection of 6.2% for
the quarter. This means to meet the
RBI’s projections, the CPI print in Sep-
tember would have to ease quite
sharply.
According to Emkay Global Finan-
cial Services, “The impact of the ₹200/
CPI inflation Food and beverages inflation CPI projections (Year-on-year, in %) continuing El Nino-related weather tening in core inflation over the last few
12 7 conditions pose an upside risk to the months. Core inflation excludes the
already-elevated food inflation trajec- volatile food and fuel components of
(Year-on-year, in %) 6.2
tory. CPI and an easing trajectory reflects
6
10
5.4 To be sure, the much-celebrated moderation in demand-side price pres-
drop in food inflation also sures, coupled with ebbing
9.2 5
8
7.6 has some spoilers. Inflation ROAD of input cost pass-through.
in heavyweight cereals and BLOCKS However, the core inflation,
4 pulses continues to be in too, is likely to see some
7.0
6 6.8 double-digits, underscor- TO meet RBI’s uptick owing to consumer
3 ing the stickiness. For vege- Q2 projections,
inflation has
spending in the festivals.
tables, it is the second high- to ease sharply Given the upward pres-
4
2 est reading in almost 40 in September sure on inflation on various
months since the covid-re- fronts, there would be a
lated supply disruptions. UPWARD risks to need for some policy recali-
2
1 CPI warrant
One must also consider some policy bration by the central bank.
that the adverse base effects recalibration by The much-anticipated
0 0 for fruit and vegetable pri- RBI, going ahead interest rate cuts by the RBI
Aug 2022 Aug 2023 Q2FY24 Q3FY24 Q4FY24 FY24
Note: CPI is consumer price index Source: MOSPI Source: RBI
ces are likely to kick in by appear like a distant possi-
the end of 2023. Note that bility, for now.
SATISH KUMAR/MINT
vegetable prices were in deflation from Perhaps this is more so because the
cylinder cut in LPG prices will likely policy meeting. Thus, an upward revi- November through June. economic momentum has held on well
reflect in the September CPI print, and sion in the RBI’s Q2 projections is on And not just the food basket, risks in recent months.
may shave off 20-25 bps from the head- the cards. loom large for non-food inflation too. The heady cocktail of likely elevated
line rate.” Still, the CPI reading for Q2 As such, the central bank has pen- Fuel inflation has risen in August after inflation (closer to the upper end of the
is likely to be above the RBI’s projec- cilled in a significant easing in price a steady fall. If the recent rise in inter- RBI’s tolerance band of 2-6%) and
tion, which has already been revised pressures in H2FY24. The path is filled national crude oil prices persists amid robust growth dynamics would tweak
higher by a meaningful 100 bps by the with several challenges. The progress the supply cuts, it could add further the odds in favour of a higher for longer
central bank in the August monetary of the monsoon so far has been disap- upside pressures to the fuel inflation pause in policy rates.

The reduced sugar output could add to food inflation

and discourage exports. BLOOMBERG NMDC’s sales volume on track, but the problem is ore prices
Sugar output in Maharashtra Vineetha Sampath show robust volume growth as tember so far is up by 2% versus FY12 to 21.7% by FY21,” said the
Lacking lustre
set to fall to lowest in 4 years vineetha.s@livemint.com focus returns to mining business
NMDC’s iron ore prices are yet to see meaningful improvement.
the average seen in August, ICICI Securities report.
Sugar output in Maharashtra, India’s top producing state, post steel plant demerger,” said according to SteelMint. How- RoE may improve further

N
is likely to fall 14% in the 2023/24 crop year to its lowest MDC Ltd is moving analysts at ICICI Securities in a Fines (64% Fe) Lumps (65.5% Fe) NMDC iron ore prices (in  per tonne) ever, a worry is that demand from current level of 22% as min-
in four years due to lower cane yields following the driest briskly towards its vol- report on 13 September. 8,000 conditions remain muted glo- ing business takes centre stage
August in more than a century, industry and government ume target for FY24. The NMDC’s volume perform- bally. Here, how the Chinese and the steel plant is demerged,
officials told Reuters on Wednesday. The reduced output state-owned iron ore producer ance is encouraging but the iron 6,000
4,650 economy shapes up is in focus they added.
could add to food inflation and discourage New Delhi aims to clock sales volume in the ore prices must gather momen- given that the country is a crucial Separately, NMDC expects to
from allowing sugar exports, supporting global prices range of 47-49 million tonnes tum to aid realization. In the 4,000
2,900 market for metals. incur capital expenditure of
which are already near their highest in more than a dec- this fiscal year. In the first five June quarter, NMDC’s sales vol- 3,910 But there is a bright spot. The ₹2,000 crore in FY24. This is
ade. Higher domestic prices will, however, improve mar- months of FY24 (5MFY24), ume was up by 41% year-on-year 2,000 2,560 international iron ore prices are expected to increase further as
gins for producers such as Balrampur Chini, Dwarikesh NMDC’s sales volume stood at but the average sales realization climbing, which in turn augurs the company aims to increase its
Sugar , Shree Renuka Sugars and Dalmia Bharat Sugar, 17.4 million tonnes, up by nearly was down by nearly 20% to 0 well for the domestic prices. capacity to 100 million tonnes by
Jan 2019 Aug 2023
helping them make payments on time to farmers. The 30% year-on-year. This means ₹4,915 per tonne. The last price Meanwhile, NMDC’s return on FY30.
Note: The numbers in brackets indicate iron content Source: SteelMint
western state of Maharashtra, which accounts for more for the rest of FY24, the com- revision by the company was in equity (RoE) ratio is likely to see Shares of NMDC have risen by
than a third of India’s sugar output, could produce 9 mil- pany needs to clock a relatively mid-August, which was a cut in SATISH KUMAR/MINT
an upward trajectory. “With sig- almost 16% in 2023 so far.
lion metric tonnes in the 2023/24 season (which begins slower growth of about 23% to lump ore and fines price by 6-7% meaningful upside movement, tion of steel. In domestic mar- nificant capital allocation A further boost to investor
on October 1), down from 10.5 million tonnes in 2022/23, meet the mid-point of its guided to ₹4,650 per tonne and ₹3,910 the demand for steel needs to kets, steel price is inching up and towards steel plant since FY12, sentiments would come from
said B.B. Thombare, president of the West Indian Sugar range. per tonne, respectively. rise adequately. Iron ore is a key that is a plus. The price of we saw NMDC’s RoE gradually consistent volume performance
Mills Association. REUTERS “We believe NMDC is likely to For iron ore prices to see a raw material used in the produc- domestic hot rolled coil in Sep- reducing from a healthy 33.6% in and potential price hikes.

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

Nifty closes above JSW Infra gets nod for IPO ‘Online bank a/cs inaccessible to
20K for first time Naman Suri
naman.suri@livemint.com
company’s debt stood at
₹2,875 crore.
This will be the company’s
third listing on the bourses,
many due to defunct credentials’
New DelhI Email queries sent to the the first two being JSW’s
Ujjval Jauhari company didn’t elicit any energy and steel verticals. It is Staff writer families have one or more indi-

J
ujjval.j@livemint.com SW Infrastructure Ltd, the response. embarking on this route to feedback@livemint.com viduals with bank accounts that
New DelhI Sajjan-Jindal-led port JSW infrastructure is India’s raise funds after 13 years with MuMBAI they are not able to access
business, has received the second largest port operator in the help of JM Financials as online,” it said.

A S
fter a weak start, the
markets rebounded
well on Wednesday,
with Nifty gaining 0.38% and
closing above the 20000-mark
for the first time, supported by
softer inflation data and strong
production numbers despite
weak global cues.
While Nifty ended the day at
the record closing high of
20070, Sensex, with gains of
0.38%, closed at 67466.99 and
is inching close to its all-time
high of 67619.17 seen in July.
The mid- and small-caps,
which had seen significant cor-
rections on Tuesday, also
ended with gains.
“Domestic equities cheered
the robust macro data (strong
IIP growth and lower inflation)
which helped Nifty close above
the 20000-mark for the first
time,” said Siddhartha
Khemka, head of retail
research, Motilal Oswal Finan-
cial Services Ltd.
Nifty opened flat, in line with
The mid- and small-caps also
ended with gains. AP
Products Ltd, Bharti Airtel Ltd
and Titan Ltd were key gainers
among Nifty stocks.
“Nifty crosses 20000, a
move of more than 12-13% of
this fiscal year. Unlike earlier
moves, this rally is broad based
with constant sector rotation,”
said Pranav Haridasan, manag-
ing director and chief executive
officer, Axis Securities Ltd.
Investors are willing to take
long-term equity bets here as
other key markets are facing
strong macroeconomic head-
winds, said Shrikant Chouhan,
head of research (retail), Kotak
approval to launch its
₹2,800 crore initial public
offering (IPO) and is likely to
finalize the launch by the end
of this month, a person close to
the matter told Mint.
The port business of the $23
billion group had earlier in the
year filed draft papers for a
₹2,800 crore IPO with an aim
to retire the debt and further-
more fund the capacity expan-
sion plans of the company. The
entire IPO consists of a fresh
issue of equity shares and
there will be no dilution of the
promoter’s existing equity. As
of 31 December 2022, the
Banks tap certificates of deposit to meet rising credit demand
Gopika Gopakumar
gopika.g@htlive.com
MuMBAI
terms of cargo handling capac- the lead banker to the issue. everal individuals across About 19% were unable to
ity as of FY23. The company, India are unable to access access because the bank has
The installed JSW Infra is which com- their bank accounts put their account in dormant
cargo handling India’s second menced opera- online for reasons ranging from status and 60% indicated that
capacity of the largest port tions in 2004, has defunct user credentials to their bank is “bureaucratic and
company stood at operator in terms increased its port account turning dormant, with inefficient” when approached
153.43 million
of cargo handling concession at the system of resuscitating it an for re-enabling their or their
tonnes per Mormugao Port arduous process, a survey has family’s account access online.
annum for multi- capacity as Trust in Goa to found. Dormant bank accounts also Close to 7% said they were una-
commodity of FY23 nine port conces- Community social media impact access. BLOOMBERG ble to access the bank account
cargo, including sions and holds platform LocalCircles said after as it was in DEAF status, with
dry bulk, break the operations issues were reported by bank- and the platform said 44% balance transferred to RBI.
bulk, liquid bulk, gases, and and management contract of ing consumers over 18 months, respondents were from tier DEAF is depositor education
containers. It has had a 40% two ports in West Asia— it conducted a survey to under- one, 34% from tier two and 22% and awareness fund and under
growth in cargo volumes since Fujairah Terminal and Dibba stand the type and magnitude were from tier three, four and RBI norms banks have to trans-
FY20 with a cargo volume of Terminal in the United Arab of difficulties faced by consum- rural districts. fer balances from accounts that
93 million metric tonnes Emirates (UAE)—with a capac- ers. It received 31,000 “In summary, the findings of remain unclaimed for 10 years
(MMT) as of 31 March 2023. ity of 41 MMT per annum. responses from 14,502 citizens the survey indicate that 41% of or more to this fund.
liquidity turned surplus, and higher on a year-on-year basis. raising short-term money to
rose again in August. During Canara Bank, Punjab National meet its requirements before
April-August, deposit growth Bank, Bank of Baroda and the merger.
rose 5.8%, while credit Indian Bank saw higher CD RBI was also on a rate hike

weak global markets, but soon
witnessed sharp recovery and
ended the day with gains, he
added.
Strong buying interest was
seen in public sector bank
stocks and Nifty PSU Bank
index ended with gains of over
4%. Overall, the banking and
financial services space saw
good investor interest, and
stocks in realty, metals, oil and
gas, pharma, and telecom were
among other prominent gain-
ers. Coal India Ltd, Grasim
Industries Ltd, Tata Consumer
B
Securities Ltd.
He added that surprisingly,
buying has continued despite
persistent selling by foreign
investors and valuations get-
ting stretched in the ongoing
market rally.
Foreign portfolio investors
(FPIs) were net sellers of assets
worth ₹1,631.6 crore in the
Indian markets on Wednesday,
suggested provisional data,
while domestic institutions
provided support by being net
buyers of assets worth ₹849.86
crore.
anks are turning to
cheaper certificates of
deposit (CDs) to meet
credit demand which has out-
paced deposit growth, data
showed.
Led by public sector banks,
lenders issued CDs worth
₹2.62 trillion between April
and August this year against
₹2.5 trillion in the same period
last year, data from Prime
Database showed. CD issues
rose from ₹25,813 crore in
April to ₹72,785 crore in June,
before moderating in July as
demand jumped 9.1%.
Interest rate on one-year
bulk deposits currently stands
at 7.6%, and one-year term
deposit rate at 7.25%, against a
three-month CD rate of 7.05%.
“In August 2023, with
Reserve Bank of India (RBI)
mandating banks to maintain
an incremental CRR of 10% of
NDTL (net demand and time
liabilities,) and the resulting
squeeze on liquidity, CD issu-
ances once again increased
and rose to ₹57,170 crore,” said
Aditi Gupta, economist, Bank
issuances this year. Private
banks’ share of CD issues was
26%, and on a year-on-year
basis, it was lower by 25%. Axis
Bank and IDFC First Bank
were the largest issuers among
private sector banks this year.
“Banks like ours have strate-
Public sector banks like Punjab National Bank saw higher CD gically decided to raise funds
issuances this year. MINT through CDs to reduce cost,” a
treasury official with a public
of Baroda. Public sector banks sector bank said on condition
“With the upcoming festive accounted for over 65% of all of anonymity.
season and tax outflows, this CD issues in this period. Bankers also say that last
trend is likely to continue in According to Gupta, CD issu- year, the CD market was under
the near future,” she added. ances by PSU banks were 30% pressure as HDFC Bank was
spree, which made it expen-
sive to raise CDs. This year,
however, rates have stabilized
and more banks see opportu-
nity to raise CDs.
“Owing to fluctuating
liquidity conditions, CD has
remained a critical instrument
for commercial banks to man-
age liquidity. Overall borrow-
ing through CDs seems to have
stabilized, but it may go up in
the H2 depending on the
liquidity condition,” said Sou-
myajit Niyogi, director at India
Ratings & Research (Ind-Ra).
LIVEMINT.COM CORPORATE ThurSDay, 14 SepTember 2023
New Delhi 05

Reliance Retail in talks with Kept $533 mn in fixed

investors to raise $1.5 billion
Reuters
feedback@livemint.com
MuMBaI/New DelhI/DuBaI
I
ndia’s Reliance Retail is in
talks with existing investors
including the sovereign
wealth funds of Singapore,
Abu Dhabi and Saudi Arabia
for combined new invest-
ments of around $1.5 billion,
three persons with direct
knowledge of the plan said.
Reliance Retail is India’s
largest retailer and is led by
Asia’s richest person Mukesh
Ambani. The talks with inves-
tors are part of an internal tar-
get to raise $3.5 billion which
the company wants to close by Reliance Industries, the retail arm’s parent, also has plans to
the end September, Reuters invest in the ongoing fund raising round of $3.5 billion.
has reported. Of that, QIA last
month announced a $1 billion discussions are private.
investment and KKR & Co this
week $250 million.
Singapore’s GIC, the Abu change.
HT
Ambani’s Indian retail
The final investments or empire has more than 18,000
funding plans could still stores, with operations ran-
ging from groceries to elec-
income assets: Byju’s
Clarification after allegation that sum was invested in little-known fund
Nandita Venkatesan, data
Ranjani Raghavan & Varun Sood journalist, Mint.
MuMBaI/BeNgaluru
Mint staffer
B
yju’s on Wednesday disclosed
that it invested more than $500
million in debt instruments,
responding to investor con-
Venkatesan
cerns after American lenders
alleged that the online tutor deliberately
hid money in an obscure hedge fund.
in TIME100
Glas Trust Co., the trustee representing
lenders who had extended a loan of $1.2 Next list
billion to the world’s most valuable educa-
tion technology startup in November Staff Writer
2021, told a Florida court on 7 September feedback@livemint.com
that Byju’s transferred $533 million to New DelhI
Camshaft Capital Fund, a Miami-based

M
Dhabi Investment Authority GIC, PIF, and ADIA are tronics. It includes foreign hedge fund, allegedly established by a int journalist Nandita
(ADIA) and Saudi Arabia’s among the world’s biggest partnerships with brands such 23-year-old with no training or experi- Venkatesan on
Public Investment Fund (PIF) investment funds and together as Marks and Spencer and ence in investing. The lenders also told the Wednesday was
are looking to invest at least they own a 4.4% stake in the competes with Amazon and court that the official address of the hedge Byju’s denied any wrongdoing and said it is the “beneficiary owner of the funds”. named in the top 100 emerging
$500 million each in Reliance Indian retailer. Walmart’s Flipkart in one of fund in its regulatory filings is a US restau- leaders globally in TIME maga-
Retail at a valuation of $100 Reliance Industries, the the world’s biggest markets. rant chain, IHOP. information in relation to the amount in June, citing predatory tactics by the len- zine’s TIME100 Next list, fol-
billion, one of the sources told retail arm’s parent, also has When ADIA invested in Bloomberg reported on Glas Trust’s fil- question, i.e. part of the funds received by ders and the ongoing litigation. lowing her successful chal-
Reuters. plans to invest in the ongoing Reliance Retail in 2020, it said ing against Camshaft on Tuesday. Byju’s Alpha, the borrowing entity under While Byju’s lenders want immediate lenge against a patent renewal
GIC, ADIA declined to com- fund raising round of $3.5 bil- it was part of its strategy of tar- Glas Trust is also involved in a legal case the TLB (term loan B).” access to the money, the edtech major has application earlier this year for
ment, while PIF lion, two of the geting market leading busi- against two of Byju’s US entities in a New The management also spoke to several proposed a six-month repayment sched- a key tuberculosis drug.
did not respond The talks with persons said. nesses in Asia linked to the York court as it seeks to recover outstand- investors, providing them with details of ule with $300 million to be paid within 75 Venkatesan, 33, shared the
to R e u t e r s ’ investors are part Reliance sold a region’s consumption-driven ing funds. the transactions and the location of the days. honour with her co-petitioner
requests for com- of an internal 10.09% stake in growth. However, Byju’s denied any wrongdo- funds. “Camshaft was used as a wealth Both parties are also pursuing out-of- Phumeza Tisile, a South Afri-
ment. Reliance target to raise its retail unit in Last month Ambani said in a ing and clarified that it is the “ben- adviser,” a person in the know on court negotiations. can health activist. Both Ven-
said: “We do not 2020, valuing it speech that “several marquee eficiary owner of the funds”. the matter said, adding that the Despite the ongoing efforts for a mutual katesan and Tisile are tubercu-
$3.5 bn which the
comment on at ₹4.68 trillion global strategic and financial “As a commercially pru- $533 million was moved to a settlement, in court filings, lenders have losis survivors who lost their
firm wants to
media specula-
tion
($56.4 billion). At investors have shown strong
a n d close by October that time, GIC interest” in his company, but
dent borrower and like any
large corporate treasury, $1.2 bn
The loan availed by
reputable asset manager alleged that Byju’s went “to great lengths
through Camshaft. to conceal the whereabouts” of the $533
hearing due to side effects of a
drug administered to them.
rumours.” and A D I A gave no names. In 2019, the Byju’s Alpha made invest- At the heart of the dispute million in its legal responses. A “safer and more effective
A second per- invested $664 billionaire said his group ments in a multi-hundred Byju’s on which the is the repayment of the $1.2 “In response to the exercise of remedies drug” to treat TB, by Johnson &
son said some of the three million each, while PIF planned to list the retail busi- billion dollar fund with high- dispute is centred billion loan availed by Byju’s by the lenders, Byju’s eponymous founder Johnson, had been inaccessible
investors could end up putting pumped in $1.15 billion, based ness in five years. Reliance security fixed income instru- in November 2021. Now, the and CEO Byju Raveendran brazenly to many due to patent laws, the
in less than $500 million, and on current exchange rates. Retail reported a consolidated ments,” a Byju’s spokesperson lenders have requested the firm claimed “the money is someplace the len- magazine said in an article on
talks were also on with at least A fourth person briefed on net profit of ₹91.81 billion ($1.11 said. to repay the amount following alle- ders will never find”. In an earlier litiga- the two women.
one or two further investors the dealmaking said the 2020 billion) for the financial year “Our credit agreement with lenders gations of breaching certain covenants. tion filed in Delaware, the borrower’s The firm had filed for an
for the fund raising. fund raising agreements had a that ended in March 2023, on does not prohibit or restrict the move- Lenders have argued that Byju’s inten- counsel admitted in open court that it extension of its patent in India,
“All the three investors have clause that allowed existing revenue of ₹2.6 trillion. It has ment or investment of monies disbursed. tionally evaded them by moving the $533 moved the funds to remove them from the which prompted them, with
evaluated the company quite investors to increase their also forayed into the consumer There is no requirement for Byju’s to million in mid-2022, which they believed reach of lenders “based on fear of lenders the backing of Médecins Sans
seriously,” said the first of the stakes, and those investment goods business, which will maintain cash as collateral. As a matter of would be available for debt servicing of acting expeditiously”, said a 7 September Frontières, file a plea with the
three persons, all of whom funds were showing keen compete with likes of Coca- fact, the Delaware court ruling in June this the $1.2 billion loan. court filing seen by Mint. Indian Patent Office. The two
declined to be named as the interest. Cola and Unilever. year rejected the lenders’ application for Byju’s stopped servicing the loan in ranjani.raghavan@livemint.com women won in March.

NCLT nixes IndusInd Bank settles default ₹5,200 cr deal Plane neglect: Go gets notice
Torrent plea to sell Bombay
dispute with Coffee Day Global Dyeing land
Krishna Yadav blades and urged Go Airline to

over RCap Priyanka Gawande Reuters

krishna.yadav@livemint.com
New DelhI
replace all the missing parts
immediately.
The lessors also expressed
resolution
T
priyanka.gawande@livemint.com feedback@livemint.com he Delhi high court on their surprise regarding the RP,
MuMBaI BeNgaluru Wednesday issued noti- a finance professional with lim-
ces to Go First’s Resolu- ited fund, being responsible for
approval
I B
ndusInd Bank on Wednes- ombay Dyeing and tion Professional (RP) and the maintenance of lessors’ aircraft
day informed the National Manufacturing Co. Ltd Directorate General of Civil while retaining control over
Company Law Appellate Tri- will sell a land parcel in Aviation (DGCA) in response to their assets.
Priyanka Gawande bunal (NCLAT) that it has Mumbai for about ₹5,200 pleas filed by aircraft lessors According to the counsel
priyanka.gawande@livemint.com reached a settlement with Cof- crore ($626.62 million) to a regarding inadequate aircraft appearing for the lessors , the
MuMBaI fee Day Global and has with- unit of Japan’s Sumitomo maintenance. RP may argue that he intends to
drawn the insolvency petition Realty and Development Co, BOC Aviation (Ireland) Ltd, Delhi HC has asked Go First’s retain these aircraft until the

T
he Mumbai bench of the
National Company Law
Tribunal (NCLT) on
Wednesday rejected Torrent
Investments’ plea seeking to
put on hold approval of Reli-
ance Capital’s resolution plan
till the Supreme Court passed a
final order.
In April, the Hinduja Group
emerged as the sole bidder for
turning around the debt-laden
firm, after the lenders com-
pleted the extended challenge
process. The NCLT must now
approve the Hindujas’ resolu-
tion plan, to complete the pro-
cess under the Insolvency and
Bankruptcy Code.
Torrent, in its plea, sought
the tribunal’s intervention to
keep RCap’s resolution plan in
abeyance till the final order. It
also urged the NCLT to direct
Hinduja Group-owned Indus-
Ind International Holdings, the
administrator of Reliance Capi-
tal, and the committee of cred-
itors, not to undertake any fur-
ther action on concluding the
resolution process.
“With respect to the apex
court’s order of March, it is an
undisputed fact that the appli-
cant (Torrent) has not partici-
against the company.
A lawyer who is part of the
deal said on the condition of
anonymity that the debt in
question was sold to ASREC
(India) Ltd, an asset reconstruc-
tion company. A joint settle-
ment application has also been
filed by the two in the matter.
Following this, the Chennai
bench of the appeals tribunal
set aside a National Company
Law Tribunal (NCLT) order
from 20 July, which had
allowed the initiation of insol-
vency resolution against Coffee
Day Global Ltd.
“Coffee Day has settled the
entire debt to IndusInd by way
of assignment of debt to ARSEC
ARC. A joint settlement memo
(was) filed, and (an) order has
been passed by (the) NCLAT
today,” said a senior counsel
Studios embrace cross-promotions to woo viewers, boost engagement
Lata Jha
lata.j@htlive.com
New DelhI
IndusInd told the appellate tribunal that the debt in question
was sold to the asset reconstruction company ASREC.
from Skanda Legal, the firm
representing IndusInd Bank in
this case. The company’s stock
hit the upper circuit of 20% on
Wednesday.
IndusInd Bank, one of the
financial creditors, had
approached the NCLT against
Coffee Day Global over a
default of ₹94 crore.
In its 20 July order, NCLT
admitted IndusInd’s plea and
ordered insolvency against the
company. Shailendra Ajmera
was appointed as the interim
resolution professional to over-
see the day-to-day affairs of the
company. Aggrieved by the
order, the company
sharing and enhancing brand
image. “Bringing different fic-
tional worlds together, like in
crossovers, is a smart move. It
MINT
approached the appeals forum,
which stayed the proceedings
and issued a notice to IndusInd
Bank.
Meanwhile, on Friday, IDBI
Trusteeship moved the Benga-
luru bench of NCLT to initiate
insolvency proceedings against
Coffee Day Enterprises for an
alleged default of ₹228 crore.
Coffee Day Enterprises is the
flagship company of the Coffee
Day group. “The company is
seeking appropriate legal
advice and will take all appro-
priate steps to protect its inter-
est in the matter,” Coffee Day
Enterprises said in an exchange
filing on Friday.
the retail and textiles company
said on Wednesday.
The sale of the 22-acre par-
cel will help the company
record a pretax profit in excess
of ₹43 billion ($518.45 million),
Bombay Dyeing said.
It will also help the company
extinguish all its borrowings
and pay dividends in the
future, it added.
Bombay Dyeing, which
changed its strategy in March
2022 to also focus on the realty
business, will also develop
unutilised land parcels of the
company to create about 3.5
million sq. ft of residential or
commercial property, helping
it to generate revenue of ₹150
billion over the next few years.
The land sale will help the
company fund future realty
projects, it added.
ACG Aircraft Leasing Ireland, resolution professional to file insolvency matter is resolved,
and DAE 13 Ireland Designated response in four days. REUTERS but, it does not justify allowing
Activity Co. submitted new the planes to disintegrate.
applications after discovering it found the presence of algae In an interim order passed in
their parked aircraft in poor during inspection due to accu- July, a single judge bench of
condition during inspections. mulation of water as the planes the Delhi high court had per-
While asking the RP to file a were not covered during unu- mitted the lessors to inspect the
response within four days, the sual rains. BOC said that it grounded planes.
court also said it will be issuing found scratches on the panels The order was later upheld
guidelines on maintenance of and the signs of subpar mainte- by a division bench of the high
the aircraft on 19 September. nance were evident. court and subsequently by the
However, the HC clarified BOC further informed the Supreme Court. The court will
that it does not intend to mod- court that their aircraft were in hear the case on deregistration
ify or seek clarifications on the long-term storage in Coonoor of aircraft on 22 September.
lessors’ maintenance plea, but even before the moratorium, Go First has filed for insol-
the directions will apply to all and the engines were removed vency due to financial difficul-
lessors of Go First, to prevent as no flight was operated since ties linked to Pratt and Whit-
the filing of new applications. December 2022, which is only ney’s faulty engines. The
BOC informed the HC that adding to deteriorating condi- National Company Law Tribu-
their planes were in deplorable tion of their planes. nal accepted its plea on 10 May
condition, with issues such as In a separate submission, leading to suspension of the
poor maintenance of landing ACG raised concerns over key airline’s board and the imposi-
gear and main body. The components missing in the tion of a moratorium on its
planes were not only dirty, but leased planes, such as fan financial obligations.
evision-style shows and focus- co-founder and chief creative wood’s turning point, sparking
ing on cost-effective market- officer at marketing agency excitement and boosting box
ing strategies, he added. White Rivers Media explained. office collections,” he said.
“As they observe viewership This trend is also evident in It is clear that crossovers

pated in the extended chal-
lenge mechanism nor has it
submitted a resolution plan,”
an NCLT bench comprising
justices Virendrasingh Bisht
and Prabhat Kumar said.
Last December, Torrent was
one of the highest bidders with
a bid of ₹8,640 crore for RCap,
but IndusInd soon submitted a
revised bid of ₹9,000 crore,
leading to a dispute between
these bidders. While rejecting
its plea, the NCLT said the apex
court did not grant a stay on the
proceedings at the tribunal,
while the lenders argued that
pendency of the plan is result-
ing in a weekly loss of ₹42 crore.
F
ilm studios and web con-
tent creators are increas-
ingly turning to cross-
promotions as a cost-effective
strategy to enhance audience
engagement in a crowded con-
tent landscape.
For instance, Ayushmann
Khurrana’s Dream Girl 2 col-
laborated with Netflix’s Fabu-
lous Lives of Bollywood Wives,
while lead actors from Disney+
Hotstar’s original productions
like The Trial and The Night
Manager engaged with each
other to generate more buzz.
Brand experts said there are
multiple benefits of such col-
laborations, including cost-
helps the audience connect
with content better. It attracts
more viewers, creating excite-
ment among the fans and help
in promotion,” Tanvi Bosmia,
associate account director at
SoCheers, a digital marketing
agency, said.
This strategy benefits both
creators of the content and the
audience, she said. For exam-
ple, Amazon Prime Video’s
strategy to get the characters
from its shows Hush Hush, The
Family Man, and Paatal Lok to
come together for a video,
which is particularly interest-
ing given that all three shows
featured cops, but with vary-
Ayushmann Khurrana’s Dream Girl 2 collaborated with Netflix’s
Fabulous Lives of Bollywood Wives.
ing personalities. A senior
streaming platform executive
said OTT players are already
staring at flat subscription
growth this year due to a satu-
patterns stabilizing, services Hollywood. After the success aren’t limited to shows of a sin-
are trying out of Mission: Impos- gle OTT platform but can
new things and sible-Dead Reck- extend to series or movies by
don’t see a reason Crossovers can oning Part I, Tom multiple production houses
to spend for the extend to series Cruise, endorsed for different platforms, either
sake of it,” he or films by many c o n s e c u t i v e theatrical or digital.
said. production screening of Bar- “The most important aspect
“Sharing vibes
houses made for bie and Oppen- here is the theme or genre of
with brand part- heimer both the show or movie which can
ners splits costs, different releasing in thea- be found across different plat-
broadens audi- platforms tres the following forms and there is no harm in
ence base and week. tapping into a newer audience
HT elevates the Bollywood is as well. More and more OTT
brand image. Picture collabo- catching onto this trend as platforms are now seeing the
ration in audience base in met- rations with like-minded part- well, with characters from value additions that crossovers
ros. To counter this, such plat- ners help conquer new mar- Karan Johar’s Rocky Aur Rani bring to their marketing strat-
forms are initiating cost-cut- kets and makes for timeless Kii Prem Kahaani and Dream egies to help sustain momen-
ting strategies by dropping and contemporary produc- Girl 2 engaging in playful ban- tum of their campaigns in the
episodes of non-premium, tel- tions,” Mitesh Kothari, the ter. “This might mark Bolly- long run,” Bosmia said.
06 ThurSDay, 14 SepTember 2023
New Delhi CORPORATE LIVEMINT.COM

Return asset papers ‘Govt to set up import mgmt Russia oil

within 30 days of production
loan repayment: RBI system for IT hardware soon’ cuts worry
New Delhi
Gopika Gopakumar Gulveen Aulakh one or two days, it will go into consulta-
gopika.g@livemint.com gulveen.aulakh@livemint.com tion.
MuMbaI New DelhI What kind of interest has the FROM PAGE 1
government received from Indian

T
I
he Reserve Bank of India ndia will introduce an import man- companies such as Reliance, Tatas, swered till press time.
(RBI) on Wednesday agement system to permit the etc., in the semiconductor space? Amid the growing volatility
said regulated entities import of laptops, servers and other RIL, as in Jio, has interest in semi- in the energy market and vol-
have to release original prop- IT hardware products from trusted conductors, as they must because untary cuts by major oil pro-
erty documents to retail loan jurisdictions, Rajeev Chandrase- they’re in that space. Tatas have a deep ducers, India is also consider-
borrowers within 30 days of khar, minister of electronics and IT, interest which they have reiterated, in ing reducing its dependence
full repayment, and any delay said. Imports from non-trusted juris- semiconductors and electronics, as on crude oil. The recent
would attract a penalty. dictions—read China—will be limited they must. But it is not enough for them launch of the Global Biofuels
This would include con- to a certain number of units. The to have interest, they have to have a Alliance with India is seen as a
sumer credit, education loans, framework, expected to be put in place partner that is the source of the tech- move in that direction. A
loans given to create or this month, aims to exit the ‘non-sus- nology in case of a fab or packaging. I statement from the petro-
enhance immovable assets Shaktikanta Das, governor, tainable’ model of relying on imports, will tell you that a lot of Indian compa- leum ministry on 11 Septem-
and loans for investment in Reserve Bank of India. PTI the minister said in an interview. Edited nies are interested. They are looking to ber said the alliance would
financial assets like shares, excerpts: the government for direction and gui- help reduce the world’s
debentures and others. RBI uty governor B.P. Kanungo dance which we have given them. dependence on petrol and
has set a penalty of ₹5,000 last year, which had proposed What has the government commu- We’re helping them (on the technol- diesel.
per day that banks must pay lenders who offer home loans nicated to companies importing IT ogy), and we’re also asking them the Oil prices have been ele-
the borrower for each day of should compensate borrowers hardware products? products that they will build. vated for around two months
delay in returning the original and pay a monetary fine if they IT hardware—the broader server Foxconn is learnt to have tied up now, with Brent crude trading
documents. lose property documents. and laptop market—is increasingly with STMicro. Have they submit- at $92.62 a barrel and West
The new directive is appli- “Suppose borrowers want to powering the growth of digitization of ted a proposal? Texas Intermediate at $89.43
cable to regulated entities, transfer the loan to another our economy, Internet and cloud in I don’t want to confirm that. They a barrel at press time. The cost
including banks, non-banking bank, either for interest reduc- India. Currently, it is extraordinarily have certainly told us that they have of the Indian basket of crude,
financial companies (includ- tion or an additional loan, the dependent on supply chains that are management system, which also has a extraordinarily concentrated in geo- access to credible, industry grade, leg- comprising Oman, Dubai and
ing housing finance compa- transferee lender only releases import-intensive, and within that, it is third goal, of not disrupting any transi- graphies that are not trusted, they will acy node technology. We have not Brent crude, was $92.65 per
nies), asset reconstruction the outstanding amount once extraordinarily dependent on one tion from the current model. We want have to find some other way of manu- asked them where that is from yet, barrel on 12 September,
companies, local area banks it receives the original docu- geography. That is not a sustainable to make it orderly. facturing. because they have yet to submit a for- according to Petroleum Plan-
and cooperative banks. ment from the original bank. model for the Indian government. So, When will it be implemented? The concern may be that govern- mal proposal. As you know, all the pro- ning & Analysis Cell data.
In its press release, RBI With delays, the additional we’ve said two changes we need to see What time frame will be given to ment will put quotas in case of posals will go to the same scrutiny by The discount on Russian

‘
noted that these amount will be to the broader supply chain; there has companies for transition? imports. the Technology Advisory Group. crude oil supplies to Indian
regulated entities RBI set a penalty held up,” said D.S. to be a larger domestic component of it, It should come up by middle of this If a company says There’s prepara- refiners has also been dwin-
have been seen to of ₹5,000 per day Tripathi, execu- and if there is an import component, it month. (On transition period) It will not that I want to import tion on for Semicon dling. Russia emerged as a
follow divergent that banks must tive vice-chair- has to be from a trusted source. We be two months for sure, and will not be from a particular juris- There is certainly going India 2024. major supplier to Indian
practices in the pay the borrower man of Aadhar want to build trust into the DNA of all 12 months. If you import from geo- diction, which we may to be an incentive for By next September, refiners for the first time in
release of such Housing Finance. policymaking of the underlying inter- graphies that are not fully trusted by us, not be fully comforta- companies to diversify when the third edition 2022-23 after it started giving
for each day of
movable and Original prop- net, and the digital eco- then we will say subject ble with, then of course of Semicon India oil at discounted rates amid
immovable prop- delay in returning erty documents system that sits on it. We their supply chain
erty documents, the papers help in establish- don’t want to face the
m INTERVIEW to you pivoting and
transitioning to a much
we will say that you can
only import so many under the IT hardware
comes around, we
would have launched
the Ukraine war. According to
data from the Union ministry
leading to cus- ing ownership problems that countries more trusted supply pieces, you can’t PLI scheme SCL modernization of commerce and industry, oil
tomer grievances and facilitate in the West are today facing, having chain, we will give you a certain import for the next 10 and Bharat Semicon- imports from Russia have
Rajeev Chandrasekhar
and disputes. future transactions. Typically, invested in equipment from certain amount of time, where you can get a years from it. That will Minister of electronics and IT ductor Research Cen- continued to rise in this fiscal.
“These directions shall be banks ask customers to deposit countries and now to pull back. The certain amount of material from that be interpreted as a ter, which can be the During the first quarter of
applicable to all cases where ownership documents as secu- cloud in India is going to be 25-30 particular geography, which is much quota, but it is what it is. two linchpins of 2023-24, crude oil imports
release of original movable/ rity against the loan. When times what it is today in the next two to better than saying nothing (from that What is the status of the Digital research. The Micron project would from Russia rose nearly three-
immovable property docu- there is a default, banks use three years. There will be huge demand geography). There is certainly going to India Act? have substantially developed. We’re fold from a year earlier. The
ments falls due on or after 1 such documents to transfer for data centres and servers. We are be an incentive to the PLI (production- It is ready. It is going through the reasonably confident that we would value of imports from Russia
December,” RBI said. ownership and recover their saying do more domestic sourcing of linked incentive) IT hardware scheme internal process of the government, have also got a couple of fab proposals in the three months to June
The new regulations come dues. that supply chain and if you do it, also for companies to diversify their supply including the legal department, before minimum approved. Also, Semicon stood at $12.36 billion, almost
after following recommenda- Bankers said there are sev- make sure that we will scrutinize where chain and create more domestic sour- it goes for consultation. I wanted to India will be global as SEMI will orga- tripling from a year earlier.
tions by a central bank com- eral instances when the prop- you’re bringing it from. So, to address cing of their equipment and supplies. start the consultation in the second nize it in Taiwan, Europe, the West rituraj.baruah@live-
mittee headed by former dep- erty documents get held up. both these goals we will put an import Wherever we think that they are week of September. I think give or take and Japan. mint.com

Offshore property may face scrutiny Monin set to

FROM PAGE 1 retrieval would allow tax
authorities to search for data as
sharing approach. OECD also and when required and not
called for a second “more novel wait for periodic exchange of
direct access-based model”. It information, Nangia said.
is based on the “interconnec- According to Amit Mahesh-
tion of digitalized ownership wari, tax partner at AKM
registers accessible to desig- Global, a tax and consulting
nated relevant government firm, the concrete proposals
invest ₹300 cr
GE HealthCare plans to set up
in new plant manufacturing hub in India
in Telangana FROM PAGE 1 to facilitate growth of the
medical device sector in the
Varuni Khosla GE HealthCare operates a country.
varuni.k@livemint.com joint venture in India with Chaillot said India has three
New DelhI Wipro Ltd, named Wipro GE segments of people that are in
Healthcare, where it holds all categories.

agencies on a real-time basis.”
It would be based on digital
infrastructure that seamlessly
interconnects national regis-
ters and would include a single
query portal. The framework
has to have modalities for giv-
ing access to specified agen-
cies, define the purpose of
access, specify confidentiality
requirements, and an interna-
tional legal instrument or
treaty defining the “modalities
for interconnecting and
accessing the registers in a
cross-border setting,” the
OECD report explained.
Once put into effect, this
framework would take the
global system of information
sharing, which currently
focuses more on financial
holdings, to the next level.
Experts believe the OECD
partly attributes the shift in
investor preference from
financial assets to real estate
over the last decade to the
automatic exchange of finan-
M
made by OECD for countries onin, a French syrups 51%. The joint venture has “The Indian market is a
to adopt will lead to increased company, is set to already signed up for the gov- mixture of three things - the
visibility on cross-border real expand its production ernment’s production-linked very super-premium, the pre-
estate transactions that have in India with a ₹300 crore incentive (PLI) scheme for the mium market and the value
the potential to benefit not investment in a new plant in medical devices sector. The market. In the value market, if
According to experts, the proposed model for tax transparency of only tax administrations but Telangana. Although the com- joint venture already makes you look at tier 2, tier 3 cities
real estate assets will be a great tool for ensuring tax compliance.AFP also other regulatory, anti- pany announced the plant in over 30 products in India, and onward, some of the
money laundering and law 2018, its groundbreaking is exporting 45% of its produc- patients don’t have access to
cial information among payers (ordinary residents) are enforcement authorities. happening this week, said Oliv- tion to about 70 countries. GE HealthCare operates a JV in healthcare. And so this is
nations, and the proposed required to disclose their for- Maheshwari also said it is ier Monin, chairman, Georges The fresh manufacturing India with Wipro, named Wipro where the job and the mission
model for tax transparency of eign assets and income. worth noting that investor Monin SA. plans will be over and above GE Healthcare. MINT come together. My mission is
real estate assets will be a The OECD report noticed behaviour varies significantly The investment into Monin production under the PLI to make sure that in India, I
great tool for ensuring tax that tax authorities lack visi- depending on the specific India Pvt. Ltd will come directly scheme. ucts have been commis- cater for this population. And
compliance. bility into the for- details of the real-time infor- from the family owned French “You’ll hear some very sioned, and domestic manu- this population exists also in
Rakesh Nan- OECD has made eign real estate mation-sharing system, the business. The first phase of the good news soon of machines facturing of Southeast Asia,
gia, the chairman proposals with holdings of their level of transparency in each growth in the first two years, manufactured in India. We high-end medi- The GE-Wipro JV Mexico, Brazil
of Nangia Ander- far-reaching residents. With country and how well inves- through the investment would were always at the forefront of cal devices has has signed up for and all these
sen India, a busi- implications for the data being tors adapt to the new regula- be to make products local, manufacturing in India, for started, which the government’s countries,” he
ness advisory available, tax tory landscape. using locally sourced products. India and the world. And include Linear production-linked further said.
tax compliance
firm, explained authorities would Overall, the implementation In the second phase, till 2027, it we’re building on this for the Accelerator, GE Health-
incentive scheme
that a Schedule related to offshore start comparing of such recommendations is will look to make India a pro- future,” Chaillot added. MRI Scan, Care’s interconti-
FA introduced by property holdings the declarations likely to promote greater duction hub to export its prod- Under the PLI scheme for CT-Scan, Mam- for the medical nental business,
the Indian gov- made in the tax accountability and compliance ucts to neighbouring South- medical devices, a total of 26 mogram, C-Arm, devices sector which Chaillot
ernment to com- returns with the among investors holding over- east Asian countries. He said projects have been approved, MRI Coils and heads, comprises
bat tax evasion and money data of real estate holdings, seas real estate assets. How- the company invested ₹50 with a committed investment high-end X-ray 60 countries
laundering has been a part of and a mismatch would invite ever, investors may become crore to acquire more than 40 of Rs 1,206 crore. Out of this, tubes. across Latin America, India &
the income-tax return forms further investigation,” more cautious about non-dis- acres in 2018, to create research an investment of Rs 714 crore The g o v e r n m e n t South Asia, Japan, Korea,
since FY11-12. explained Nangia. closure of real estate assets or and developmental labs to has been achieved. Fourteen announced the National Southeast Asia, Australia and
“Under this schedule, tax- Also, real-time information income in offshore accounts. localize its products. projects producing 37 prod- Medical Devices Policy, 2023, New Zealand.

Go First lenders jittery on interim finance due to prolonged litigation

FROM PAGE 1
deteriorating Go First’s assets
but also turning the loan
recovery prospects bleak.
“The issue is whoever loses
the case in the high court, a
further appeal is well-expected
before the Supreme Court,
prolonging the litigation for
several months to over a year.
What is the point of having a
resolution law? The whole res-
olution process is taking
longer than expected because
of the litigation. We will be
able to decide on the next
course of action after the court
delivers its judgement,” this
person added. “The airline’s
resumption plan and its future
hinge entirely upon the Delhi
high court or any subsequent
ruling by the Supreme Court.”
To be sure, several promi-
nent insolvency cases in India
have dragged on longer than
envisaged under the Insol-
vency and Bankruptcy Code
(IBC). On average, it has taken
643 days to achieve resolu-
tions against 330 days envis-
aged under the code.
A long-drawn court battle
may completely derail Go
First’s resumption plans and
force even the remaining
pilots to quit, according to the
two people.
“This will also deteriorate
most of the airline’s assets,
cause an unfair flight-fare-
price environment for passen-
gers will significantly lower
the prospects of loan recovery.
This will make even any
potential liquidation effort
futile,” said the second person,
adding the airline has failed to
draw any serious bids by PRAs
(prospective resolution appli-
cants) during August. “What
will the PRA bid for? The liti-
gation may barely leave the
airline with any asset or busi-
ness prospect.”
Asked if the company could
go into liquidation if the reso-
lution does not pick up and
how lenders would recover
their loans, the banker cited
above, however, said they have
enough collateral to liquidate
in case the need arises.
The strategy behind invit-
ing PRAs was to raise
A long-drawn court battle may completely derail Go First’s
resumption plans .
₹4,000-5,000 crore at one
shot from a deep-pocketed,
strategic partner who could
come as a promoter so that the
airline could repay most of its
PTI
dues to the lenders and the les-
sors as quickly as possible.
“The load factor is improv-
ing and the industry as a whole
is steadily growing. The
growth potential is phenome- ready to supply and maintain (SIAC) directed the US-based
nal. We are open to all types aircraft engines, and the pilots aircraft engine maker to do so.
of large suitors,” said the are willing to work to help Go Emails sent to Go First’s
second person. First make the most of the lead creditors and the resolu-
Go First’s resumption plan upcoming festive season and tion professional remained
with fewer flights is in line generate decent cash for the unanswered till press time.
with the Direct- revival. But the Deutsche Bank declined
orate General of The planned lessors just don’t to comment.
Civil Aviation interim financing agree,” said the On 3 May, Go First filed for
(DGCA), but a was meant to help second person. voluntary insolvency and sus-
revised one had Go First meet “Ultimately, the pended operations in the face
envisaged lessors too will of an acute engine scarcity and
basic working
restarting flight lose the value if cash crunch. Meanwhile, on
operations with capital the condition of Wednesday, in the Delhi high
26 aircraft. DGCA requirements the grounded air- court, one of the lessors of Go
wants the airline craft keeps deteri- First informed that since the
to ensure there orating this way.” engines from several aircraft
are enough pilots for Go First Late in July, P&W agreed to were removed on 6 December
resumption. provide 4-5 engines and allied 2022 and no commercial flight
“The lenders are ready to services every month to Go has run since then, its plane is
provide interim financing, First after the Singapore Inter- further deteriorating.
Pratt and Whitney (P&W) is national Arbitration Center anirudh.l@livemint.com
LIVEMINT.COM CORPORATE ThurSDay, 14 SepTember 2023
New Delhi 07

‘Indian tourists to
Unease over iPhone 15 pricing S. Africa could soar
India production part of move to diversify supply chains; manufacturing cost in China seen as lower than in India
with direct flights’
Varuni Khosla
varuni.k@livemint.com
Shouvik Das & Gulveen Aulakh NEw DElhi
NEw DElhi
China flags
E
yeing a larger share of

A
pple’s decision to manu-
facture iPhone 15 locally ‘security issues’ Indian travellers, South
Africa’s tourism market-
in India isn’t solely about ing promotion council said it
pricing, instead it repre- with iPhones expects that travel could jump
sents a significant strate- manifold if direct flights from

C
gic move to diversify its supply chains hina flagged security India are introduced.
globally, industry experts said. problems with Having hosted around
One should not perceive it just as a iPhones, marking the 100,000 Indian tourists annu-
cheaper manufacturing decision, but government’s first comments ally before the pandemic, Neliswa Nkani, hub head for
goes beyond mere cost-cutting con- on reports that authorities are South African Tourism antici- MEISA for tourism board.
siderations, they said in response to moving to restrict officials’ use pates a large resurgence in
the outrage over a price disparity of of Apple Inc products. “We Indian travellers due to a new option and they are processed
new iPhones in India, compared to, noticed that there have been e-visa pilot programme. in 5-7 days, unlike some of the
say, the US or the UAE. many media reports about Neliswa Nkani, hub head for European countries where
The iPhone 15, unveiled on Tues- security incidents concerning the Middle East, India, South- travellers have to wait for
day, is the first product from Apple’s Apple phones,” Chinese for- east Asia, and Australasia many months,” she said.
lineup to join the initial production eign ministry spokesperson (MEISA) for the tourism board, Of this, the entire business
run, starting in August, well ahead of Mao Ning said. China plans to said the introduction of a travel segment from India
its launch. expand a ban on the iPhones direct flight by Air India could stands at 23%, up from 16% in
iPhone 15 starts at ₹79,900, main- Apple is also set to overtake Samsung in terms of revenue-based market share in India. BLOOMBERG to a plethora of state-backed boost tourism, potentially the first quarter of FY22.
taining the same price point as the companies and agencies, transforming how Indians Meetings, incentives, con-
iPhone 12, launched in October 2020. Experts, including Singh, said the said despite multiple assembly part- India is a promising destination to Bloomberg News reported this travel to South Africa. ferences and exhibitions
However, this year, the iPhone 15 Pro cost of assembling a smartphone in ners, Apple does not have the supply achieve that,” said Pathak. month. BLOOMBERG Nearly 100,000 Indians account for about 29% of the
models are dearer by ₹5,000, while India is almost on par with China. chain bandwidth in India to meet its However, industry experts remain travelled to South Africa every travellers.
iPhone 15 Pro Max prices have surged which remains Apple’s biggest manu- local demand. Around 80% of sales in divided on price disparity of Apple’s year before the pandemic This has also grown 16%
by ₹10,000 across all storage variants. facturing hub. India come from the assembly lines iPhones in India over other markets. began in 2019. Arrivals in 2023 over the same quarter the year
Following the launch, Indian han- “China, due to economies of scale here, and the rest is still imported, he “The iPhone 15 Pro has a price differ-
dles on social media platform X high- in its overall supply chain, presents a added. ence of nearly $500 in India and the
French agency between January and June prior. Mumbai, Delhi and Ban-
have already galore are the top
lighted the price disparity of the new manufacturing cost that’s lower than Singh agreed: “Apple’s supply US and the UAE. With India becom-
iPhone models versus global markets, India by nearly 5%. However, this dif- chain falls short of its initial ing an increasingly important market seeks to recall touched 41,668.
This, she said,
Nearly 100,000 three markets
Indians travelled from India.
despite the Made-in-India tag. ference is diminishing in India’s demand—the iPhone 15 is a sizeable for Apple, this disparity is hard to was an 82% Flight capacity
Navkendar Singh, associate favour, and will continue to upgrade for those who are explain. It may help the brand iPhone 12 to South Africa
growth com- every year before out of China is
vice-president of Interna- change further, as China’s using the phones for three maintain its halo among pared to same still restrained
the covid-19

A
tional Data Corp. (IDC) cost of labour is increas- or more years. With the customers to a certain French government period last year. and that has
pandemic began m e a n t
India, said there was no
impetus for Apple to 9 mn
No. of Apple
ing, while India is launch coming in the
affordable for contract festive season, Apple’s ₹79,900
Starting price for
extent, but beyond a
certain point, Apple
watchdog agency
ordered Apple to with-
South Africa
could be on track in 2019
that
around the world,
revise pricing. “Apple manufacturers like India assembly capacity will need to look at draw the iPhone 12 from the mar- to getting its tourism boards
has kept the price of its devices likely to be Foxconn,” said a senior will fall short at least till iPhone 15, same as pricing strategy if it ket, saying it emits levels of elec- entire India busi- have been vying
base iPhone variant con- shipped in 2023 industry consultant February next year.” iPhone 12 aims to break into the tromagnetic radiation that are ness back before the end of for the attention of Indian
stant over the past three working with Apple, as Therefore, the present top-five brands of the too high. The National Fre- FY24. travellers with schemes and
years, since it is the primary well as multiple other situation will have no smartphone market here quency Agency, which oversees “We had some hiccups in promotions.
revenue driver for the brand in brands, seeking anonymity. impact on how Apple prices its and hit 20 million device ship- radio-electric frequencies as well terms of visas and staffing dur- Indians account for a large
India. ‘Pro’ iPhone models account Taiwan-headquartered Foxconn, products for India. Instead, it is look- ments a year,” Singh said. as public exposure electromag- ing the pandemic. While we chunk of travellers.
for less than a fifth of all iPhone sales (Hon Hai Precision Engineering Co. ing at its India facilities as part of its Apple is expected to cross nine mil- netic radiation, called on Apple in still haven’t fully rolled out The Indian ministry of tour-
here. At this end of the market, buy- Ltd), is Apple’s largest manufacturing bid to diversify its supply chain. lion device shipments in 2023, up a statement Tuesday to “imple- e-visas yet, we have piloted it ism citing data from the
ers don’t have an alternative offering vendor, followed by Taiwanese man- “Last year, Apple’s iPhone 14 sup- 40% over last year. With an average ment all available means to rap- and we are receiving applica- Bureau of Immigration said
everything that an iPhone 15 Pro does ufacturers Wistron Corp and Pega- plies were affected due to outbreak of price of ₹85,000, against an industry idly fix this malfunction.” Cor- tions through that. While most that about 8.5 million Indians
similar to the niche Samsung’s ‘Fold’ tron. All three now have manufactur- covid-19 in China. This, coupled with average of sub-₹25,000, it is also set rective updates to the iPhone 12 Indians prefer to travel in travelled abroad in 2022, 98%
range enjoys at over ₹1.5 lakh. Such ing facilities in India. geopolitical tensions, raised the need to overtake Samsung in terms of reve- will be monitored by the agency, groups with stamped visas. But of them by air.
buyers do not put off their purchases Tarun Pathak, director at market for the company to diversify its over- nue-based market share. according to the statement. AP we are educating travel opera- This figure stood at 23 mil-
due to minor price differences.” research firm Counterpoint India, all supply chain away from China, and shouvik.das@livemint.com tors here that e-visas are an lion in pre-covid 2018.

TRIPURA STATE ELECTRICITY CORPORATION LIMITED

(A Govt. of Tripura Enterprise)
NOTICE INVITING E-TENDER
Addl. General Manager, DP &C, TSECL, Banamalipur, Agartala
invites tenders on behalf of TSECL from the eligible agency for
Implementation of "Setting up of Smart Centralized Customer
Care Centre System on SaaS (System as a Service) basis
under Revamped Distribution Sector Scheme (on OPEX
mode)". The Notice Inviting Tender (NIT) can be seen in the
websites www.tsecl.in and details of bid document will be
available to download from website http://tripuratenders.gov.in

Have fun
with facts
on Sundays
Catch the latest column of

A
A quiz on the week’s development.

hindustantimes htTweets www.hindustantimes.com

08 ThurSDay, 14 SepTember 2023
New Delhi NEWS WRAP LIVEMINT.COM

QUOTES
Cathie Wood Hisashi Takeuchi Jacob Helberg
Radhika Rao Founder, Ark Invest CEO, Maruti Suzuki India Commissioner,
Economist, DBS Bank Ltd Bitcoin is the world’s digital India has a huge US-China Commission
It is too early for the monetary system, and Lightning talent pool but to For years, Apple & “expert pun-
Reserve Bank of India is Bitcoin’s payments layer. make them industry dits” said it would be impossible
policy committee to let Coinbase’s integration with ready there is a for Apple to move its supply
its guard down as infla- Lightning will give its 100 million greater need to col- chains outside of China...Apple’s
tion remains above the users an on-ramp to faster and laborate across the pivot to India should be cele-
4% target cheaper bitcoin transactions. value chain. brated & accelerated even further.

Signature Global VIRAL FEAR Blue Dart ‘Dart Plus’

reduces IPO size is now Bharat Dart

R B
eal estate firm Signature Global reduced lue Dart Express Ltd, one of the logistics
its total offer size for an initial public providers and majority owned by DHL
offering (IPO) to ₹730 crore from ₹1,000 Group, renamed its last mile trucking
crore, an updated prospectus showed. The IPO delivery service amid speculation that the
comprises a fresh issue of shares worth ₹603 nation may change its name to “Bharat”.
crore and ₹127 crore worth of shares being Blue Dart will rebrand the Dart Plus service
offered by the company’s existing shareholder as “Bharat Dart,” according to a stock exchange
International Finance Corporation, a World filing. The name change underscores its
Bank Group member, according to the “unwavering commitment to serving the
prospectus. “A high-interest rate environment diverse needs,” it said.
to tackle inflation poses a major challenge to The company, which serves 55,000
both homebuyers and developers...believe these locations in India, has a special focus on the
are among the reasons Signature Global would nation’s smaller cities that had a 37% share of
have reduced offer size,” said Prashanth Tapse, online commerce deliveries in year to last
senior vice president of research at Mehta March.
Equities. The company develops residential, India has been abuzz with speculations of a
commercial and retail projects mainly in the change of its name to Bharat, after a dinner
northern cities, including Gurugram, Karnal invite for the G20 nations leaders’ summit over
and Ghaziabad. Its consolidated loss after tax the weekend referred to the head of state as
narrowed to ₹63.86 crore for the financial year “President of Bharat”. BLOOMBERG
ended 31 March. REUTERS

Volunteers in Kerala’s Kozhikode district block a road to a Nipah virus-infected area to contain the spread of the disease. State health minister Veena
George said the virus strain seen in Kerala is the Bangladesh variant that is less infectious but has a high mortality rate. The virus has claimed the
lives of two people, including a 9-year-old boy, in Kozhikode. Tests have confirmed the presence of the virus in two other patients. PTI

IndiGo has grounded nearly 40 planes due to a

WhatsApp debuts broadcast Taabi has been started to tap the growing demand
for innovative fleet and logistics solutions. MINT
Pratt & Whitney engine issue.

IndiGo gets nod to

MINT

tool Channels, top celebs join RPG Group sets

up logistics arm
wet-lease 11 A320s
R
PG Group on Wednesday said it has set up

I
ndiGo operator Interglobe Aviation has been
allowed to wet-lease 11 A320 aircraft, CNBC-
TV18 reported on Wednesday, citing sources
at the Directorate General of Civil Aviation.
This comes amid IndiGo grounding nearly 40
planes due to a Pratt & Whitney engine issue,
the report said. Pratt’s owner RTX had on
Monday said it would have to pull a total of 600
a new business arm Taabi Mobility Ltd to
Channels are separate from chats, and who you choose to follow is not visible to others tap the growing demand for innovative
fleet and logistics solutions.
This addition brings AI and IoT-enabled
Lata Jha found in the new ‘Updates’ tab, he added. reactions and reactions will not be shown to fol- software-as-a-service (SaaS) solutions, designed
lata.j@htlive.com With Channels, WhatsApp’s goal is to build the lowers. to transform the logistics and fleet management
new delHI most private broadcast service available, the com- Admins will be able to make changes to their landscape, the company said.
pany statement said. Channels are separate from Updates for up to 30 days, when they are auto- The company said its suite of specialized SaaS

to 700 engines off their Airbus A320neo jets for
lengthy quality inspections between 2023 and
2026. IndiGo did not immediately respond to a
request for comment.
RTX had in July said a rare powder metal
defect could lead to the cracking of some engine
components and called for accelerated
inspections affecting 200 engines by mid-
September. Last month, IndiGo said it was
assessing the impact on its fleet due to troubled
Pratt & Whitney engines and it expects a fall in
yield due to seasonal weakness in the second
quarter. India’s biggest airline by market share
posted a profit of₹3,087 crore for the quarter
ended 30 June on strong demand for air travel
and a fall in jet fuel prices, compared with a loss
of ₹1,065 crore a year ago. REUTERS
M
eta Platforms-owned instant mes-
saging service WhatsApp has
announced the launch of What-
sApp Channels in India and over
150 countries that will deliver pri-
vate updates from organizations, sports teams,
artists, and thought leaders that people can fol-
low. WhatsApp Channels are a one-way broadcast
tool within the app, the company said in a state-
ment.
“Excited to introduce you all to WhatsApp
Channels, a new private way for you to get
updates from people and organizations you fol-
low. I’m starting this channel to share Meta news
and updates. Looking forward to connecting with
you all around the world,” Meta CEO Mark Zuck-
erberg said in a Facebook post. Channels can be
chats, and who you choose to follow is not visible matically deleted from servers. Forwarding an solutions is geared towards reducing fuel costs
to other followers. Update to chats or groups will include a link back and improving vehicle uptime across various
“We also protect to the channel so industries, including transportation, mining,
the personal infor- people can find out telecommunications, and construction.
mation of both The Indian cricket team and more. “This new business arm will allow us to meet
admins and follow- celebrities like Katrina Kaif, Diljit As WhatsApp the growing demand for innovative fleet and
ers,” the statement Channels roll out logistics solutions. Our goal is to help businesses
said. Dosanjh, Akshay Kumar and others globally over the establish smarter fleets and (thereby) meet
As Channels have launched WhatsApp Channels next few weeks, customer demands more reliably,” Taabi
expand globally, the more features will Mobility chief executive officer Pali Tripathi
platform will roll be added based on said. PTI
out an enhanced directory where users find chan- feedback from users. Over the coming months, it
nels to follow that are automatically filtered based will be possible for anyone to create a channel.
on their country. They can also view channels that The Indian cricket team and celebrities like
are new, most active, and popular based on num- Katrina Kaif, Diljit Dosanjh, Akshay Kumar, Vijay
ber of followers. Users will be able to react using Deverakonda, Neha Kakkar and others have
NHRC issues notice
emojis to give feedback and see a count of total launched their WhatsApp Channels.
over fake drugs

T
he NHRC has issued notices to the Union
INDIA bloc to start Govt not to make 6 airbags mandatory
health ministry and the Drugs Controller
General of India (DCGI) over the
seat-sharing talks reported circulation of falsified liver drug
Defitalio and cancer drug Adcetris, officials
the ACMA annual session in New Delhi. said on Wednesday.The National Human

T
aking another step in its strategic plan to
take on the BJP in the 2024 Lok Sabha
polls, opposition bloc INDIA on
Wednesday decided to hold their first joint
public meeting in Bhopal in poll-bound Madhya
Pradesh in the first week of October, and said the
constituent parties will start seat-sharing talks
“at the earliest.” The opposition alliance said it
will raise issues related to rising prices,
unemployment, corruption and caste census.
The decisions were taken at the first meeting of
the coordination committee of the INDIA
grouping which was held at the residence of
NCP chief Sharad Pawar. Twelve leaders of the
14-member panel, the highest decision making
Last year on 29 September, the
government deferred the
implementation of the proposal to make
six airbags mandatory in passenger cars
by one year to 1 October 2023.
The government had earlier planned
to make six airbags mandatory in eight-
seater vehicles for enhanced safety of
occupants from 1 October 2022.
“Considering the global supply chain
constraints being faced by the auto
industry and its impact on the
Union road transport and highways minister macroeconomic scenario, it has been
Nitin Gadkari. PTI decided to implement the proposal
mandating a minimum of six airbags in
The bench was hearing an appeal filed by DBS
against a Delhi high court order.
SC quashes cases
Rights Commission, in a statement, observed
that the content of the news report, if true,
raises a serious issue of violation of human
rights, which is a matter of concern, it said.The
NHRC has taken “suo motu cognisance of a
media report that after the alert from the
World Health Organization (WHO), the
Central Drugs Standard Control Organization
(CDSCO) has asked the state regulators,
doctors and patients to remain vigilant about
two medicines—liver drug Defitalio and cancer
MINT drug Adcetris, as the falsified versions of these
drugs are circulating in four countries,
including India”, it said. PTI

against DBS Bank

body of the alliance, were present at the meeting
that took place against the backdrop of a raging
row over DMK leader Udhayanidhi Stalin’s
controversial remark on the Sanatan Dharma.
Congress general secretary K. C. Venugopal said
Abhishek Banerjee of the TMC could not attend
the meeting due to the summons issued by the
T
he government will not make six
airbags mandatory for cars, Union
road transport and highways
minister Nitin Gadkari said on
Wednesday.
“We don’t want to make six airbags
rule for cars mandatory,” Gadkari said at
passenger cars (M-1 Category) w.e.f 1
October 2023,” Gadkari had said in a
tweet.
The minister had further asserted that
the safety of all passengers travelling in
motor vehicles irrespective of their cost
and variants is the foremost priority. PTI
Juniper Green gets
T
he Supreme Court has quashed criminal
proceedings against the DBS Bank in a case
of alleged misappropriation of fixed deposits,
$350 mn investment
observing that allowing its prosecution will

ED. PTI amount to travesty of justice. The alleged offence
happened before the Lakshmi Vilas Bank merged
with the wholly-owned subsidiary of Singapore-
based DBS Bank in India in 27 November 2020. A
H&M to sell second-hand clothes, accessories at London store bench of Justices S. Ravindra Bhat and Aravind
Kumar noted that the criminal proceedings in
question were attributable to the actions of four
J
uniper Green Energy said AT Capital Group
and Vitol have invested $350 million in the
independent renewable energy power
producer. The Juniper Green Energy targets
to triple its operational capacity to 2.5 GW by
2026 and forge ahead with its ambitious
development plans. Sanjay Bakliwal, director at

H
&M plans to sell second-hand clothes and accessories at its flagship officials of Lakshmi Vilas Bank before its AT Capital Group said, “Their impressive
store in London from 5 October, as pressure increases on fast fashion amalgamation with DBS Bank. project pipeline, combined with their
companies to curb their environmental impact by encouraging the The judges said according to criminal law, the proficiency in EPC and O&M services, aligns
reuse and recycling of garments. With the European Union planning new individual responsibility and accountability of seamlessly with our vision for a sustainable and
regulation to crack down on textile waste in the bloc, H&M has said it is “part of the officials remain unaffected by the greener future.” The increase in investment to
the problem” and that the way fashion is produced and consumed needs to amalgamation. “In the present context, the $350 million comes nearly two years after the
change. The “PRE-LOVED” womenswear collection, at H&M’s Regent Street public’s confidence in the banking industry was initial commitment of $200 million from AT
store, will include garments from several other brands and designers as well as at stake, when RBI stepped in, imposed the Capital Group and Vitol, a company statement
H&M group brands, which include Arket, Cos, Monki, and Weekday. moratorium and asked DBS to take over the said. The Juniper Green Energy has solidified its
The autumn-winter 2023 collection of the second-hand offerings will entire functioning, management assets and position as a key player in the Indian renewable
include metallic dresses and shirts, trench coats, and “trendy knits”, H&M said, liabilities of the erstwhile Lakshmi Vilas Bank. energy sector, boasting an operational portfolio
with new items added every day. The bench was hearing an appeal filed by DBS of nearly 800 megawatts (MW) with an under-
H&M did not immediately respond to a query about pricing and how the against a Delhi high court order refusing to construction capacity of 435 MW and a
garments would be sourced. The retailer launched a clothing rental service at Fast fashion is under pressure to curb its environmental impact by quash criminal proceedings against it and its development pipeline of more than 3 GW across
its Regent Street store in November last year. REUTERS encouraging the reuse and recycling of garments. MINT directors. PTI solar, wind and hybrid power projects. PTI
10 ThurSDay, 14 SepTember 2023
New Delhi LONG STORY LIVEMINT.COM

HOTTEST GPU MAKER’S

INdIA PlAyBook
While businesses in India need Nvidia’s chips, the company also needs India

Leslie D’Monte
leslie.d@livemint.com
BengAlUrU

B
ehind ChatGPT, the block-
buster generative artificial
intelligence (AI) chatbot capa-
ble of creating human-like text
based on context and past con-
versations, are about 20,000 graphics
processing units (GPUs). Behind these
GPUs is a 30-year-old American com-
pany, Nvidia.
You would know of central processing
units (CPUs), the brain of computing devi-
ces like mobiles, desktops, laptops and
servers. GPUs are a more powerful ver-
sion—unlike CPUs, GPUs are specifically
designed to handle multiple tasks simulta-
neously, a feature known as parallel com-
puting. That makes them more suitable
for high-performance computing tasks
like supercomputers and training large
language models or models that can learn
and comprehend. Deploying a large num-
ber of high-performance GPUs helps in
shortening the training time for models
such as ChatGPT.
The explosive growth of AI has now
made Nvidia, known for selling its pro-
cessors to the gaming industry even till
five years ago, one of the hottest technol-
ogy assets in the world. As of September,
it is the fifth largest tech company meas-
ured by market capitalization at $1.2 tril-
lion, after Apple, Microsoft, Alphabet and
Amazon. For the second quarter ended 30
July, Nvidia generated revenue of $13.51
billion, up 101% from a year ago.
Jensen Huang, Nvidia’s co-founder,
president, and chief executive officer,
was in India earlier this month. What was
he up to? Well, he has been visiting India
since 2004, or ever since the company
started its India operations. But this trip
was different. He signed deals with two of
India’s largest conglomerates. Those
could have far-reaching implications for
Indian businesses. The agreements, with
Reliance Industries Ltd (RIL) and the
Tata Group, will help the two conglom-
erates create AI infrastructure. The two
groups, with their enormous resources,
could have attempted building the infra-
structure themselves, buying GPUs as
needed. But it isn’t that simple. Nvidia’s
chips (the company doesn’t run its own
fabs but designs the chips) are in massive File photo of Jensen Huang, Nvidia’s co-founder, president and chief executive. He expects to see “AI factories all over the world” and predicts AI models one million times more powerful than ChatGPT within 10 years. BLOOMBERG
demand across the world and analysts
have predicted the company’s process-
ors to remain in shortage all through
2024. For every company, accessing producers, detection of pests in granaries, Accenture is racing away in the market of mint $10-20 million with Nvidia platforms. announced the launch of a ‘Indian Design
these chips to power their AI operations and even forecast the shelf life of food AI services. Accenture plans to invest $3 SHORT Exactly how? Right now, it all looks very Centre’ in Bengaluru. “Globally, on an
is a challenge. The deals secure access to products. billion in the next three years on AI. “We STORY expensive. average, we spend half a billion dollars on
computing power. Earlier, Blu Cocoon used CPUs to train think this is another Cloud First moment According to a March report by market research and development, and we will
Nonetheless, it is a two-way relation- and run its AI models, but it would take where we were out early to invest at scale,” research firm TrendForce, ChatGPT not shy away from investing 25% (about
ship. While companies in India need them almost two months to train a single Accenture chair and CEO Julie Sweet said WHAT required about 20,000 GPUs to process $125 million) of that in India,” he had said
Nvidia’s GPUs, the company also needs AI model. The training of AI models in a post-earnings call on 22 June. its training data in 2020. Going forward, during the launch.
India. There are many reasons why. But involves millions of calculations and, like TCS, which partners with Microsoft on Nvidia’s processors power the firm predicts, OpenAI’s GPT model Nvidia also needs to tap India due to
first, let’s look at how Indian businesses we mentioned earlier, GPUs have a paral- data and AI, launched a ‘Generative AI generative AI applications, making it and ChatGPT may require more than geopolitical tensions and conflicts includ-
are currently using the company’s pro- lel computing feature that can run sev- Enterprise Adoption’ service in July to one of the hottest technology firms 30,000 (Nvidia A100) GPUs as they get ing those in China, Hong Kong, Israel,
cessors. eral calculations simultaneously. It sim- jointly ideate with clients on AI-led solu- in the world today. Analysts have commercially deployed. The A100 is Korea, and Taiwan. Nvidia manufactures
ply speeds up the entire training process tions and train AI models, among other predicted its processors to remain priced between $10,000 and $15,000, its product components and does the final
ChiP in A GArden and, thereby, saves time. The company things. The Nvidia tie-up will sweeten the in shortage all through 2024. depending upon the configuration and assembly of its products in these regions.

H uang, who always makes public

appearances in a black leather biker
jacket, has forever spoken about the ver-
began using Nvidia GPUs and Nvidia
Metropolis framework for computer
vision (a set of developer and AI tools).
deal further.
According to research firm Gartner, the
market for AI software may touch $134.8 so
form factor. Any disruption in these countries could
While Huang hadn’t elaborated on how have an impact on its revenue.
the budget could shrink, one explanation During the third quarter of fiscal year
satility of GPUs, beyond gaming. Today, Besides the time saved, Blu Cocoon is billion by 2025, a large part of which will is that GPUs will eventually become a vol- 2023, the US government announced
the company has been able to leverage the now able to test its AI models on larger be chatbot technology that uses AI and Several companies are inking ume game. With higher volume, prices new export restrictions and export licens-
GPU architecture to create platforms for and growing datasets. Trained computer natural language processing to respond to partnerships with Nvidia to secure can drop. Technology also tends to ing requirements targeting China’s semi-
scientific computing, autonomous vehi- vision models running in a data centre user queries. supply of computing power. In India, become cheaper over time. conductor and supercomputing indus-
cles, robotics, metaverse and 3D internet have predicted disease about to hit a TCS will also upskill its 600,000- Reliance Industries and the Tata If that is indeed the case, Indian compa- tries. This impacts exports of certain
applications, among others. The GPUs wheat farm in India—from pictures of strong workforce leveraging the partner- Group have struck deals to create nies can hope to build a cheaper version of chips, as well as the software, hardware,
feed industries that are equally varied, plants uploaded by farmers. ship. Jayanth Kolla, founder and partner their AI infrastructure. ChatGPT someday—possibly with some equipment, and technology used to
from airports to food. at Convergence Catalyst, a consultancy association with Nvidia develop and manufac-
You may have taken a GeT The suPerChiP firm, believes that the AI re-skilling of TCS or other companies ture certain chips, to
Jensen Huang believes BUT As of September, Nvidia is the China (including Hong
flight or landed at the
swanky new Terminal-2
of Bengaluru’s Kempe-
that large language models H ow will RIL and the
Tata Group use
Nvidia’s chips?
employees will help develop front office
applications. In effect, this would help put
the vast Indian IT workforce at the fore- Nvidia also needs India. The country
making GPUs.
The Indian govern-
ment has enormous
fifth largest tech company Kong and Macau) and
Russia.
gowda International and a ChatGPT-like One, Nvidia will part- front of the upcoming AI applications is a hub for engineering resources datasets but not all of it measured by market Further, Nvidia is not
Airport. Because of its ner with the Tata Group development era. and chip design. Besides, the would be available to the only company that is
model can be built for as company needs to tap India to capitalization at $1.2 trillion,
green spaces, indoor to build an AI supercom- But this is not the first time the Tatas private companies. powering the global AI
gardens, and waterfalls, little as $10-20 million with puter. It would be pow- have announced a partnership with diversify from markets rife with Sharing his thoughts on after Apple, Microsoft, drive. It does have com-
it is also referred to as ered by the Nvidia Nvidia. In February 2022, for instance, geopolitical tensions. India building a petition from big tech
the ‘terminal in a gar- Nvidia platforms. ‘GH200 Grace Hopper Tata Motors subsidiary Jaguar Land Rover ChatGPT-like version at Alphabet and Amazon. companies. While
den’. This garden uses Superchip’. According to had announced a multi-year strategic the Mint Digital Innova- Nvidia only designs its
some of the latest that technology has to Nvidia, this processor, announced in partnership with the GPU company to diagnosis of medical symptoms and imag- tion Summit, held in Bengaluru on 9 chips (they are manufactured by semicon-
offer. August, was “designed from the ground develop automated driving systems and ing scans where doctors may not be June, Rajeev Chandrasekhar, India’s min- ductor fab makers such as Taiwan Semi-
More than 500 live camera feeds across up for giant-scale AI and high-perform- AI-enabled services for customers. immediately available. AI can better pre- ister of state for electronics and IT, said conductor Manufacturing Company and
the terminal use AI, computer vision, and ance computing applications”. This deal Nvidia also struck a deal to build an AI dict cyclonic storms using decades of the government of India would give Samsung Electronics Co.), rivals like
the internet of things to detect unat- may help the Tatas regain its supercom- infrastructure with RIL, one that is “over atmospheric data, enabling those at risk to Indian startups and Indian researchers Advanced Micro Devices and Intel Corp
tended luggage, manage passenger puting glory. One may recall that the Tata an order of magnitude more powerful evacuate and find shelter,” the company “curated access” to Indian datasets to make their own chips. Then there are a
queues and identify congestion points. Group’s Eka was India’s first supercom- than the fastest supercomputer in India stated on 8 September. build such a model, while allowing them host of fabless companies like Qualcomm
Anticipated delays help the ground staff puter. It ranked fourth among the world’s today”. The AI infrastructure will become to have “partnerships with foreign com- and Broadcom. Microsoft, too, is report-
redirect passengers to less crowded areas. top supercomputers in 2007 and was even the foundation for Reliance Jio Info- A $10 mn ChATGPT? panies”. The AI models could be built pri- edly working on its own AI chips that can
The system can also detect speed viola- used in the launch of India’s moon vehicle,
tions by vehicles outside the terminal. Chandrayaan, by the Indian Space
Gurugram-based company Industry.AI Research Organization.
comm, RIL’s telecom arm, to provide dif-
ferent services. “Reliance will create AI
applications and services for their 450
R ecently, Sam Altman, the chief exec-
utive of OpenAI, the AI research
company behind ChatGPT, visited India.
marily in areas of language translation, be used to train large language models—
healthcare and governance. this can avoid the company’s reliance on
Nvidia.
deployed this AI platform—it uses Nvidia’s Second, Nvidia said that the deal will million Jio customers and provide energy- During an interaction, Rajan Anandan, The hub For now, though, Nvidia has stolen a
software development kit (SDK) and GPUs “catalyze the AI-led transformation across
to train its AI models. SDK is a set of soft- Tata Group companies ranging from
ware tools that help developers build spe- manufacturing to consumer businesses”.
efficient AI infrastructure to scientists,
developers and startups across India,”
Nvidia stated in a release.
the managing director at PeakXV Partners
(formerly Sequoia), a venture capital firm,
asked Altman whether an Indian startup
S o, why does Nvidia need India? march in this space. According to a 27
Huang has often said that India, May report by investment bank JPMor-
where it has about 4,000 employees, is gan, Nvidia can garner about 60% of all
cific applications. Tata Communications and Nvidia will We don’t know what the nature of these could build a ChatGPT-like model with “strategic to Nvidia”. Of course, it is a AI deals this year on the back of its hard-
Another company using Nvidia’s GPUs develop an AI cloud while India’s largest services will be at the moment but the just about $10 million. Altman dismissed growing market for its GPUs. But the ware products such as GPUs.
is Kolkata-registered Blu Cocoon Digital, IT services company, Tata Consultancy same release from Nvidia hinted at three the idea as “completely hopeless”. country is also a hub for engineering But competition will eventually eat into
which works on digitizing the food eco- Services (TCS), will utilize Nvidia’s capa- possibilities. Huang, though, may know better. After resources and chip design. Overall, the Nvidia’s market share. And Huang knows
system. For instance, autonomous man- bilities to build generative AI applications. “AI can help rural farmers interact via all, his GPUs power ChatGPT. In an inter- company currently has more than well that Nvidia will need to increasingly
agement of a food production line or bet- Why is this important? TCS has to com- cell phones in their local language to get view to CNBC on 19 March, he said that 320,000 India-based developers working tap growing markets like India to offset
ter crop management. AI can help in sort- pete with aggressive IT services firms. At weather information and crop prices. It large language models and a ChatGPT- on its different platforms. any potential loss of revenue from other
ing and inventory management for food the moment, global consulting firm can help provide, at massive scale, expert like model can be built for as little as In March this year, the chief executive geographies.
LIVEMINT.COM MINT MONEY ThuRSDay, 14 SepTembeR 2023
New Delhi 11

Hedge funds’ big bet against MINT 20* MUTUAL FUND

SCHEMES TO INVEST IN
Treasurys isn’t what you think 20
We have hand-picked 20 mutual funds for your portfolio that have jumped
through hoops of good returns, low risk, good portfolio hygiene and our own
qualitative research. We have restricted the choice universe to 10 categories out
of the total 37 and given you at least two options to pick from each.

3-years return 5-years return Corpus

EQUIT Y (%) (%) (₹ cr)

Inflation, bond issuance and Fed tightening are spurring a Treasury derivative bonanza LARGE-CAP
UTI Nifty Index Fund - Growth 21.45 13.06 12,048
HDFC Index Fund - Nifty 50 Plan 21.27 12.84 9,395
Eric Wallerstein would help “level the playing field.” Category average 20.96 12.68
feedback@livemint.com Both bodies warn that banks require
nearly no margin, or cash buffers EQUITY FLEXICAP

T
he basis trade, an innocuous- against losses, for fund managers to Canara Robeco Flexi Cap 20.79 14.50 10,218
looking practice at the cen- access significant leverage. Parag Parikh Flexi Cap 25.15 18.67 39,848
ter of some of Wall Street’s The trade doesn’t always go as Category average 23.43 13.92
historic blowups, is back. planned. A scramble for cash could
A popular way for hedge hurt short-term Treasury prices, or a EQUITY SMALL AND MIDCAP
funds to profit from bond trading while flood into long-term bonds could boost Axis Midcap 25.22 17.31 22,178
minimizing their exposure to swings in futures prices. Hedge funds forced to SBI Small Cap 33.64 20.23 20,018
the market, the basis trade exploits the exit their positions by market swings Category average Midcap 31.28 17.67
price difference between Treasurys could spur banks to ask for more collat-
Category average Smallcap 38.73 20.09
and Treasury futures. The resurgence eral to back up their positions, worsen-
is attracting fresh scrutiny from Wall ing the volatility. EQUITY (TAXSAVER)
Street because previous meltdowns In extreme circumstances, the com-
Canara Robeco Equity Tax Saver 23.29 15.86 5,979
have rattled global markets. Here’s bination can throw a wrench into the
Mirae Asset Tax Saver 24.78 16.75 17,419
what traders say is going on now: ordinary process of convergence.
How the basis trade works The hedge fund Long-Term Capital Category average 24.28 13.79
Hedge funds buy Treasurys, then bet Management famously collapsed 25
against Treasury futures by selling con- years ago—requiring a Fed bailout— HY BR ID
tracts promising delivery of a bond on after pursuing similar strategies that BALANCED ADVANTAGE
a specific date at a preset price. Instead bet on securities prices converging. Edelweiss Balanced Advantage 15.51 11.63 9,458
of betting on the direction of bond mar- Worries overblown? ICICI Prudential Balanced Advantage 14.97 11.30 48,721
kets, the trade seeks to take advantage Many investors say concerns about Category average 14.43 10.37
of small differences in the securities’ the basis trade are overblown. Without
prices. it, greater friction in the underpinnings ARBITRAGE
The trade works because large asset of the financial system would cause Kotak Equity Arbitrage 4.95 5.21 23,737
managers like pension funds often pre- Now, a flurry of activity suggests it Fed’s 2% target and the central bank is more onerous terms for taxpayers, they Tata Arbitrage 4.67 NA 6,955
fer buying Treasury futures that has rebounded. Speculators are short- paring its bond book, adding pressure say. Category average 4.63 4.85
require less up-front cash than actual ing 5.6 million futures contracts tied to to the market. DRW Holdings is one of the firms
bonds. That tends to make the con- Treasurys, CFTC data show, represent- Given those uncertainties and with a actively trading the basis. The Chicago- Returns since Date of Corpus
tracts slightly more expensive than the ing roughly $715 billion of bonds. potential recession up in the air, “it’s based proprietary trading giant OU T OF T HE BOX launch launch (₹ cr)
bonds, creating a window for specula- At the same time, repurchase agree- natural to see record hedging in the opposes the SEC’s proposal to register BHARAT Bond ETF - April 2031 4.73 23 Jul 2020 12,997
tors to take advantage. Futures prices ments, where speculators borrow daily Treasury market,” said Agha Mirza, participants as so-called dealers, saying Motilal Oswal S&P 500 Index Fund 16.48 28 Apr 2020 2,919
typically converge toward bond prices from large banks using Treasurys as global head of rates and OTC products it would do more harm than good by Absolute returns
as their settlement date approaches. collateral, have surged. Roughly $1.4 at CME Group. hurting competition and liquidity. Returns as on 11 September 2023; Corpus data as of July 2023; Growth option in regular plans has been used
The differences are small, so hedge trillion of overnight repo transactions Watchdogs’ warnings “The basis trade is crucial to the *Debt funds can be viewed in the full table online
Data and analysis by CRISIL Research Compiled by Neil Borate
funds juice returns by borrowing from are taking place each day, New York Regulators and others have sounded Treasury market,” said Mark Wend-
big banks in the overnight funding Fed data show, breaching previous alarms this year that an unwinding of land, chief operating officer. “It drives
markets—often putting little, if any, highs. the basis trade could spark liquidity, ultimately low-
cash up front. Leverage can reach The surge in Treasury trading market tumult. Regulators, others ering the U.S. govern-
extreme levels: Hedge funds had more
than $550 billion of
Treasury trades at
The Fed’s fight against inflation and
the U.S. govern-
ment’s wave of bor-
The Switzerland-based
Financial Stability Board
have sounded
alarms this year
ment’s borrowing costs.”
The leverage involved is
warned last week that that an unwinding at the heart of firms’ will-
Can only proposer get IT
the end of last year rowing reignited the hedge funds were build-
of the basis trade ingness to participate.
backed by just $10
billion of their own money, Fed
trade, analysts say.
Higher yields and worries about a
ing up worrying amounts
of “hidden leverage,” risk- could spark
market tumult
Even a small increase in
financing costs would
benefit on mediclaim policy?
research found. recession have asset managers scoop- ing a blowup. During the slash the trade’s profitabil-
That worries some on Wall Street. ing up long-term bond futures. 2020 Covid market crash, ity significantly, Fed ISTOCK

Unexpected shocks can force hedge
funds to rapidly exit from their posi-
tions, sending shock waves through
financial markets.
What’s happening now
The basis trade had been subdued
since a dash for cash in March 2020
forced hedge funds to rapidly unwind
their positions, straining the market for
Treasurys—meant to be the world’s
easiest investment to buy and sell.
Investment in Treasury futures has
never been higher at CME Group, one
of the world’s largest derivatives
exchanges. A record 19.8 million con-
tracts were outstanding in August, up
from 14.3 million at the start of the year.
At the same time, the continuing
influx of debt issuance has weighed on
short-term Treasury prices, widening
the gap between them and long-term
futures. Inflation remains far from the
hedge funds’ unwinding research found. Nitesh Buddhadev The maximum deduction
of leveraged strategies including the CME Group’s Mirza said the basis available for self, spouse and
basis trade spilled across markets, help- trade remains just a fraction of the My daughter took a medi- dependent children is
ing send the Dow Jones Industrial record 5.2 million Treasury contracts claim policy for me and my ₹25,000. The limit increases
Average to its worst losses since 1987 changing hands on an average day this wife around 14 years back, to ₹50,000 in case of senior
and forcing the Fed to step in. year. Still, it serves a vital function. and has been regularly pay- citizens. Similarly, if you are
The Securities and Exchange Com- “The basis trade benefits price dis- ing premium for this pol- paying medical insurance pre-
mission wants to require trading firms covery and liquidity in the Treasury icy. I am a more than 70 mium for parents’ policy, you
such as hedge funds involved in the market, and therefore the economy years old and a retired gov- can claim an additional benefit
Treasury market to register with the and taxpayers,” he said. ernment employee, while of ₹25,000 for parent’s medi-
agency. Chair Gary Gensler said it ©2023 DOW JONES & COMPANY, INC my wife is above 65. My cal insurance policy. In case
daughter finds it difficult parents are senior citizens,
to pay a large sum as pre- then the limit increases to
mium as she is now unem- ₹50,000. To qualify for the

Govt exempts ETFs from capital gains at GIFT ployed. However, I wish to
continue the policy. I
would like to know
deduction, the premium must
be paid through a non-cash
method. Further, you can also
whether I can pay the pre- claim a tax deduction of
PTI Finance Tec-City (GIFT)-IFSC for financial services in the world mium amount for this pol- ASK MINT ₹5,000 per annum on pre-
feedback@livemint.com is being promoted as a tax-neu- and incentivizing non-resident icy, which covers me and m INSURANCE ventive healthcare for your
tral enclave for the financial investors on a recognised stock my wife and claim the family.

T
he government has
exempted units of invest-
ment trusts and
exchange traded funds (ETFs)
issued by entities based in GIFT
City or traded in exchanges
there from capital gains tax.
The Central Board of Direct
Taxes (CBDT) notified the
exemption from capital gains
tax any unit of investment trust;
a unit of a scheme; and a unit of
an ETF launched under the
International Financial Servi-
ces Centres Authority (Fund
Management) Regulations,
2022.
Gujarat International
sector.
Nangia Andersen LLP Part-
ner-Financial Services Sunil
Gidwani said the law currently
provides for exemption from
capital gains tax on various secu-
rities either trading on the stock
exchanges in GIFT City or secu-
rities issued by entities set up in
GIFT City. The new fund regime
provides for funds to be set up as
investment trusts, and hence,
the law required the inclusion of
units issued by such trusts for
the purpose of exemption from
capital gains.
“Similarly, ETF listed and
trading on the stock exchanges
exchange.
“It is important to note that
to take advantage of this
exemption, the consideration
for such a transaction should
be paid or payable in foreign
currency. The securities,
which are added through the
new notification, include (i) a
GIFT City-IFSC is being promoted as a tax-neutral enclave for the unit of Investment Trust, (ii) a
financial sector. AFP unit of a Scheme, and (iii) a unit
of an exchange-traded fund.
in GIFT City would now qualify wani added. These relaxations are a wel-
for capital gains tax exemption. AKM Global Tax Partner Amit come move by the govern-
These changes would further Maheshwari said the notifica- ment and will make it globally
expand the scope of incentives tion is in line with the objective more competitive for the non-
available for funds and stock of making the International resident investors,” Mahesh-
market trading in IFSC,” Gid- Financial Services Centre a hub wari added.
income tax benefits availa-
ble under Section 80C?
—Jeyaseelan Devadoss
Medical Insurance pre-
mium can be claimed as a
deduction under Section 80D
and not 80C. The tax benefit
under Section 80D is over and
above the ₹1.5 lakh deductions
available under Section 80C.
The new tax regime is the
default tax regime for FY
2023-24 onwards and deduc-
tions under Chapter VI A i.e.
80C, 80D, etc. will not be
available under the new tax
regime. If you opt for old tax
regime then, you can claim
deductions under Chapter VI
A of the Income Tax Act. Sec-
tion 80D of the Income Tax
Act lays down that the deduc-
tion for medical insurance
premium can be claimed by an
individual who pays the pre-
mium for self, spouse, depend-
ent children, parents. There is
no mention of proposer or pol-
icy owner in the Act. It only
mentions that if you “pay the
premium” for a policy for self,
spouse, dependent children,
parents you can claim the
deduction.
Here, you are paying the
medical insurance premium
for yourself and spouse’s pol-
icy and you are a senior citizen.
Thus, you will be able to claim
the deduction of maximum
₹50,000 for this policy.
Nitesh Buddhadev is a Mum-
bai-based chartered account-
ant.
Do you have a personal
finance query? Send in your
queries at
mintmoney@livemint.com
and get them answered by
industry experts.

LONG-TERM EQUITY INVESTING: RISK LIES IN THE CONVICTION OF THE BEHOLDER

attribute this significance primarily to the power of compounding, volatility diminishes. A straightforward way to visualize this con-
a well-established catalyst for wealth accumulation. However, Should you extend your holding period? cept is to compare the Nifty 50 chart for a specific day with the
POWER what often goes unnoticed is that long-term investing is not just
about compounding but also plays a pivotal role in managing risk
Increasing the holding period has historically improved chances
of profitability, reduced drawdowns and lowered overall volatility.
same day on a longer chart, such as a 5-year chart. Doing so will
reveal that while the daily chart may appear highly volatile, on the
POINT and mitigating potential downsides.
Holding period (in Nifty 50)
5-year chart, the same day is a mere blip on a considerably
In fact, the concept of long-term investing is intricately linked smoother, less volatile curve.
N I R AV K A R K E R A to effective risk management, and this risk mitigation aspect is 1 year 3-years 5-years 7-years 10-years While patience is often cited as the key virtue needed to navi-
equally vital in the pursuit of long-term wealth creation. Probability of gate through periods of volatility, it’s actually conviction that
positive return (%) 70 85.4 93.9 94.8 99.7
Respond to this column at In the realm of investing, risk takes various forms and sizes, but defines resilience through volatile
feedback@livemint.com for the purpose of this discussion, we’re focusing on volatility as Probability of
30 14.6 6.1 5.2 0.3 Long-term times.
a representation of total risk to an investment. The ability to com- negative return (%) Volatility serves as a litmus test for
investing plays a

O
ne of the most valuable yet frequently misunderstood
pieces of advice in the realm of equity investing is the
notion of “investing for the long term.” However, the
question that often arises is: What does long term truly mean?
The concept of long-term investing is open to interpretation and
is often contingent upon the type of investment involved.
In the world of mutual funds, many investors consider any
period exceeding five years as the benchmark for long-term com-
mitment. On the other hand, retail investors engaged in direct
equity trading may perceive anything beyond a year as a long-
term horizon. Nonetheless, it is the most discerning of equity
investors who recognize that the long term is essentially a short-
hand way of expressing the idea of investing for as long a period
as possible—potentially even forever.
The importance of long-term investing in achieving invest-
ment success is now widely acknowledged. Many investors
prehend and effectively manage volatility is a crucial factor in Worst one’s conviction in their investment
achieving investment success. Volatility, in essence, is not an scenario (%) -55.7 -16.4 -6.6 -6.3 -1.6 pivotal role in strategy. Once conviction is estab-
adversary but a valuable ally. Standard managing risk lished, it becomes far easier to main-
31 13.3 9.1 6.5 4.6
Volatility represents the non-linear fluctuations in returns that deviation and mitigating tain the patience required to see
have the potential to generate significant gains for investors. Yet, Backtest data of Nifty 50 data since inception Source: Fisdom Research downsides investments through turbulence.
it’s essential to recognize that this same volatility can also trigger Patience is a behavioural trait while
impulsive actions that lead to unwarranted investment decisions. conviction is intellectual one.
This propensity to act in response to volatility often results in The above illustration clearly demonstrates a significant trend: Patience, when not supported by conviction, could lead to inac-
investors prioritizing short-term loss avoidance at the expense as an investor’s holding period extends from 1 year to a longer tion and consequently ineffective investment management.
of long-term wealth creation. tenure of 10 years, the likelihood of exiting with a profit However, conviction can be tested from an objective standpoint,
To illustrate this perspective, we’ve prepared a table (see approaches nearly one hundred percent. Furthermore, when periodically.
graphic). In this analysis, Fisdom Research conducted a backtest examining instances where investors do incur losses, it becomes It is important for investors to realise that investment success
to examine the returns that investors would have achieved by evident that the magnitude of those losses decreases as the is defined within oneself first and then impacted by externalities.
investing in the Nifty 50 index at various points in time and hold- investment horizon extends. Have good reason to believe and once there is, stick to it till the
ing their investments for different time periods. This study Standard deviation here serves as a measure of volatility. Con- reason is proven inadequate or irrelevant.
encompasses all instances since the inception date of the index. sequently, as the investment horizon lengthens, the degree of Nirav Karkera is head of research at Fisdom
12 ThurSDay, 14 SepTember 2023
New DeLhi
OUR VIEW
Our inflation index lens
is hazy but clear enough
A more accurate picture of the rising cost of living in India would help, but so long as the CPI
broadly captures price changes usefully, high-pixel grabs will not necessarily improve policy
T
he accuracy of India’s economic
data has been subject to much
controversy in recent years, but it
had not engulfed inflation rates
based on the consumer price index
(CPI). Might that be changing? On
Tuesday, the official release for August showed
inflation easing to 6.8% year-on-year from a
15-month high of 7.4% in July. This is the
gauge used by the Reserve Bank of India (RBI),
which is mandated to pursue price stability
so that the rupee loses its real retail value only
slowly and predictably, turning our currency
into the economy’s ally in pursuit of sustained
growth. RBI’s central target for inflation is 4%,
the difficulty of achieving which has perplexed
its monetary policy. Its chief policy rate of 6.5%
remains negative in real terms, an aberration,
but it expects prices driven up by volatile food
items to cool within a month or so, saving it the
trouble of having to tighten credit further to
dampen demand. Whether RBI’s price-level
projections work out will determine if its rate
‘pause’ turns into a pivot. But what if India’s
inflation tracker is inaccurate? What if our cost
of living isn’t rising as sharply as CPI readings
say and policy needn’t tilt at a mere windmill?
Such doubts arise from the fact that the bas-
ket of goods and services tracked by the CPI
has not been updated for about a decade, while
our patterns of mass consumption may have
shifted. Consider the weightage of inputs that
go into the index value. As befits a country of
mostly modest means, food items account for
the basket’s bulk. Together with beverages and
tobacco, edibles are almost half the index, with
clothing and footwear, fuel and light, housing
and miscellaneous items making up much of
the rest. Of course, each household can con-
Today’s world war on inflation is yielding no winners
RAHUL JACOB
A
nother month, another suspenseful
inflation number. India’s 6.8% rise in
the Consumer Price Index (CPI) on
Tuesday was lower than expected because of
slower-rising vegetable prices that however
still jumped 26%. The US’s August inflation
number released on Wednesday, mean-
while, disrupted the cheery view that the US
is a Mint columnist and a
economy is managing to avoid a recession
while inflation does the Federal Reserve’s
former Financial Times foreign
correspondent.
bidding without needing more interest rate
hikes. For stock markets around the world
relying on this benign scenario to spin out
soft landing narratives and justify higher
share prices, we are at a critical juncture. The
witty UBS chief strategist Bhanu Baweja has
called this “Peak Goldilocks.”
Among the bears threatening to spoil this
fairytale are Vladimir Putin and Mohammed
bin Salman. Russia and Saudi Arabia’s sup-
ply cuts have contributed to oil prices head-
ing north of $90 per barrel. The problem for
central bankers from the US Federal Reserve
to Reserve Bank of India (RBI) is that manag-
VIEWS
BLOOMBERG
Learning standards set specific
aims for each aspect of schooling
These form the spine of our National Curriculum Framework and need to be implemented in detail
ANURAG BEHAR
is CEO of Azim Premji Foundation.
L
earning Standards (LS) are the spine
of the National Curriculum Frame-
work for School Education (NCF),
that was released by India’s ministry of
education on 23 August 2023. ‘Spine’
because the NCF is built around these
Learning Standards, knitting all its ele-
ments together to form the whole. Most
importantly, these standards drive goal
alignment in all these elements to enable
consistency and coherence. Let us
explore this in some detail in this col-
umn, the second in this series about the
NCF. This piece, like the others in this
series, paraphrases text from the NCF
struct its own price index from the actual ratio copiously but retains fidelity to its spirit.
in which its money is spent, but for India as a To begin, a recap: The curriculum
includes the syllabus, content, peda-
whole, we must go by a statistical snapshot of gogical practices and assessment, text-
what’s being consumed. So a general formula books, teaching-learning-materials,
that was appropriate a decade ago, based on school and classroom practices, the
India’s consumption expenditure survey of environment and culture of schools,
2011-12, may no longer be so. As incomes rise and more. The design and development
of these elements are informed by a
in any emerging economy, the share of food wide range of considerations, like
in every home’s monthly expenses typically educational psychology and neurosci-
declines, while that of other items rises. Today, ences, subject knowledge of disciplines,
tales abound of telecom bills paid even by low experience and research in pedagogical
earners. As our last major consumption survey practices, and the capacity and resour-
ces of our schools.
done in 2017-18 was junked by the Centre (for Achieving coherence in this vast
discrepancies), no clear picture of patterns is array of elements, ensuring they work
available for a CPI-basket revision. Data from in harmony, and toward the goals that
the 2022-23 survey expected this year could we set for our education system, is one
help. Until its results are out, the index cannot of the most fundamental challenges in
education; especially in the design and
be rejigged with the requisite confidence.
That CPI data might capture our retail reality
through a somewhat hazy lens, however, does
not deprive this gauge of its utility. Just as
phone cameras with ever greater pixel counts
make very little difference to most snaps, an
updated index may not alter inflation readings www.livemint.com
much. Food bills probably still dominate the
cost-of-living math for most homes, although
public provisions have risen. Also, a gauge need SENSEX 19,732.76 æ 49.12
SC for barring
politicians
not show the absolute truth to serve its purpose who conceal
information
B Y M ONALISA
monalisa@livemint.com
as a trend revealer. Often, what’s crucial is not
·························
NEW DELHI
T he Supreme Court (SC)
ruled on Friday that politi-
cians who conceal information
in their nomination papers
would be barred from contest-
ing elections—another verdict
by the apex court aimed at
the clarity of the scenario, but the direction and
cleaning up electoral politics
in the country.
The ruling came in response
to a public interest litigation
(PIL), filed by civil rights group
Resurgence India, seeking the
disqualification of candidates
who conceal vital information,
pace of its change. So long as a central bank
such as their financial assets or
past convictions by a court of
law, in their election nomina-
tion papers and related docu-
ments.
Delivering the judgement,
Chief Justice P. Sathasivam
said voters have the “elemen-
tary right to know” the ante-
can grasp price flare-ups and calm-downs with
cedents of candidates contest-
ing an election.
A “universally recognized”
right, it flows from the consti-
tutional right to freedom of
speech and expression, he
said.
The apex court empowered
election-returning officers to
some reliability, low-pixel grabs of the retail
reject nomination papers that
seek to conceal critical infor-
mation. The candidate will be
given reminders to furnish any
missing information before
they are disqualified.
The court, however, directed
that the power to reject a can-
didate’s nomination be “spar-
scene work well enough. In any case, inflation
ingly exercised” so as not to
defeat the purpose of justice.
Friday’s ruling follows a se-
ries of decisions by the apex
court that have had an impact
on electoral politics.
On 10 July, the apex court
barred convicted lawmakers
from continuing in Parliament
targeting operates at the aggregate level, aimed
or state assemblies. On 5 Sep-
tember, it rejected an appeal
filed by the central govern-
ment seeking a review of the
ruling.
In another significant ruling,
the court also barred politi-
cians who are in custody or
undergoing imprisonment
at the ‘too much money’ part instead of the ‘too
from contesting elections. A
review petition filed against
this decision was admitted by
the court on 5 September.
The government opposed
the petition seeking disqualifi-
cation of politicians for con-
cealing information, saying in
an earlier hearing that such a
little stuff’ that money is chasing, so hair need
move would be like a “death
penalty” for candidates.
“We have not seen the judg-
TURN TO PAGE 2®
NOTE TO READERS
There is no Mint Markets with
not be split over item-wise details. Outdated or
today’s edition.
Mint is also available for R9.50 with
Hindustan Times in Delhi-NCR only
not, CPI inflation needs to be quelled—by law.
MY VIEW | WOrLd APArT
ing inflation has become a bit like keeping an 40. Influenced by work-life balance discus-
umbrella handy for extreme weather events. sions that have come to the fore in the US
The stress points keep moving around: one since the pandemic, many service workers
year, it is a shortage of containers as the US are opting not to go back into the workforce
hoovered up consumer goods, the next it’s a or demanding fewer work hours, which
semiconductor-chip shortage that affected cumulatively pushes up labour shortages
auto production globally. Now, it is global oil and wages. The most dramatic demonstra-
prices, while in India a bizarre relay-race of tion of union power com-
rising vegetable, edible oil and cereal prices, ing back in the developed
seemingly jumping from one category to world would be if the
another, has made inflation a subject for dis- almost 150,000-strong
cussion almost as pervasive as politics. UAW elects to go on strike
It is significant that US core prices are this week, but we are
expected to have been tame in August already seeing a feistier
because used-car prices have come down by
double-digit levels. The trouble with infla-
workforce in rolling strikes
across the UK since last
tion is that when you have had it at elevated
levels for a couple of years, so-called infla-
year and protests in
France. The National
tionary expectations become entrenched Health Service in the UK
and inevitably spread to wages. This week is has seen strikes repeat-
doubly significant in the US because the edly, which once would
United Auto Workers union may decide to have seemed like blas-
strike to push its case for higher wages and phemy. Junior doctors are
almost French-styled lower working hours going on strike for three to four days every
per week. The UAW is asking for a 40% wage month since March. They are demanding a
boost over four years and cost-of-living 35% salary increase to make up a “full pay
increases as well as better pensions. If this restoration” to the loss in value of their sala-
wasn’t all rather a lot to be putting on the ries by more than a quarter since 2008.
negotiation table, the UAW is asking for a Both the UAW and NHS offer a very vivid
shortened 32-hour workweek, down from demonstration of how inflation expectations
LIVEMINT.COM
MY VIEW | OThEr SPhErE
development itself, much before the are articulated within each curricular
implementation. This column doesn’t area; enabled by appropriate school
deal with issues related to implementa- culture and processes, these are to be
tion other than noting that good design achieved by the end of schooling. The
and development, including account- Aims lead to Curricular Goals for each
ing for practical considerations, is a of the four stages of school—which are
necessary though not sufficient condi- specific statements that give direction
tion for effective practice and imple- to curriculum development and imple-
mentation in the real world. mentation. These in turn ‘flow-down’ to
What are the Learning Standards and Competencies—which are specific
how do they bring about goal align- learning achievements that are observa-
ment? In essence, LS are a set of objec- ble and can be assessed systematically.
tives. They range from the most abstract These are further broken down into
and long-term to the more specific, specific Learning Outcomes for each
shorter-term and useable. Iteratively, class—which are milestones of learning
the LS become more detailed and spe- that progress in a sequence, leading to
cific, ultimately even spelling out goals the attainment of a Competency, and
relevant to day-to-day life in a school. which enable teachers to plan their con-
Rigour in this process ensures that each tent, pedagogy and assessments.
goal is tightly derived from higher-level
goals, is internally coherent, and is suffi-
cient to address all aspects and nuances
of the higher goal. All elements of the
Here is an example directly from the
NCF. One of five Curricular Aims of
Language Education is development of
effective communication skills: “Stu-
NCF are focused on achieving these dents should develop their language
goals and facilitating alignment and capacities to think critically, identify
coherence. real-world problems, analyse them,
At the highest level, the LS articulate make rational arguments, and work out
the aims of school education derived solutions. The capacity to use language
from the vision of our society as imag- to think and communicate well in a vari-
ined in the Constitution of India. These ety of situations is critical for effective
aims are the development of rational democratic, social, and cultural partici-
and independent thinking, health and pation.” One Curricular Goal for the
well-being, democratic and community Secondary Stage this leads to is: “Use
participation, economic participation Language to develop reasoning and
and cultural participation. These in turn argumentation skills by engaging with a
require developing appropriate values, variety of audio and written material.”
acquiring positive dispositions and This then leads to the following Compe-
developing capacities for inquiry, effec- tency—one of 14 others: “Argues with
tive communication, problem solving, proper rationale by carefully evaluating
logical reasoning, creativity, aesthetic premises.” Finally, this leads to one of
expression, maintaining health, pro- many Learning Outcomes for Class 9:
ductive work and effective social “Evaluates the premises of an argument
engagement; and acquiring knowledge for its clarity, relevance, and reliability
in breadth and depth across ‘curricular (of evidence).”
areas’ of Language, Mathematics, Learning Standards thus provide
Natural Sciences, Social Sciences and goals to activities in education at all
Humanities, Art, Physical Education, levels and for all time frames, from
and Vocational Education. teaching a single class period in a school
The LS to achieve these values and to the development of textbooks and a
dispositions, capacities and knowledge syllabus. This is what makes it the spine
are then derived at four levels of of the NCF. This will be discussed in
increasing specificity. Curricular Aims detail in my next column.
New Delhi, Mumbai, Bangalore, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Saturday, September 14, 2013 Vol.7 No.220 `5.00 in Delhi­NCR/`6.00 outside Delhi­NCR 12 PAGES
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All our knowledge begins
36
PAINFUL LESSONS QUICK EDIT
The Lehman crisis The right
The main opposition Bharatiya Janata Party
Hours
and India’s bad karma stuff
B Y A NIL P ADMANABHAN
anil.p@livemint.com
·························
NEW DELHI
deficit at 6.4% as opposed to the
projection of 5.5%.
Avoiding one crisis actually
sowed the seeds of the present
T he death sentence
awarded to four crimi-
nals for raping and mur-
dering a young woman last
year was perhaps the swift- with the senses, proceeds
F
ive years ago, when the Leh- fiscal crisis—something which, est such verdict in India’s
(BJP) on Friday chose Gujarat chief minister
Narendra Modi as its candidate for prime man collapse triggered a rating agencies argue, could judicial history. The court
minister in the next Lok Sabha election, due in
domino effect across the world,
emerging economies like China,
lead to the downgrading of In-
dia’s sovereign credit rating to
must be lauded for its
work.
then to the understanding,
2014. The announcement was preceded by hectic India and Brazil were celebrated junk status. In short, the country It was heartening to read
efforts to forge a consensus within the party on for their ability to hold their is facing up to its fiscal karma. justice Yogesh Khanna’s
Modi’s candidacy. Here is what happened in the own. However, the perceptions To be sure, however, in retro- words when he said,
hours that led up to Modi’s anointment: have been dramatically re- spect, things may not have come “These are the times when
versed ahead of the fifth anni- to such a pass if it had not been gruesome crimes against
versary of Lehman’s bankrupt- combined with the policy paraly- women have become ram-
cy, on 15 September, with the sis that afflicted the Congress-led pant, and courts cannot
emerging economies now fight- United Progressive Alliance turn a blind eye to the
ing for survival. One (UPA)—it has spent al- need to send a strong de-
can’t help but wonder most all of its second terrent message to the per-
how things could have tenure fighting off dis- petrators of such crimes.”
and ends with reason.
gone so wrong. tractions forced upon it This paper has argued
In the case of India, by alleged acts of cor- that India has witnessed a
the palliative—the ruption in high office. dangerous de-linking be-
massive fiscal stimulus of `1.86 Further, what has hap- tween the deterrent effect
trillion—became the proverbial pened—and this is not unique to of the law and the preva-
millstone around its neck. India—since the Lehman crisis lence of crimes such as
That’s something that finance is that governments have been rape and murder. Hopeful-
minister P. Chidambaram refers overwhelmed by their fiscal kar- ly, this judgement will prod
to (indirectly indicting prede- ma, leaving the onus of manag- the judicial leadership to
cessors who oversaw the stimu- ing the economy on the central devise ways to restore fear
lus) in his moments of exaspera- bank. And this is structurally not of the law among crimi-
There is nothing higher
tion when fending off vexing sustainable. This is precisely the nals. It must not be forgot-
questions on the fiscal slippage. underlying thread of the recent ten that the fast-tracking of
THURSDAY The projected fiscal deficit, or differences between the Reserve this case took place after
BJP president Rajnath Singh meets senior leaders gross borrowings of the Union Bank of India and the ministry mass protests. There are
L.K. Advani and Murli Manohar Joshi, staunch government, of 2.5% of gross do- of finance—though some have many such cases that con-
opponents of Modi’s anointment as the party’s mestic product for 2008-09 actu- sought to pass this off as some tinue to languish under the
prime ministerial candidate. ally turned out to be 6%; in the kind of personality battle. weight of judicial proce-
following year there was another dure. That must change.
Sudheendra Kulkarni, a close associate of Advani, slippage with the actual fiscal TURN TO PAGE 3®
tweets against a “socially polarizing leader”, a
reference to Modi.
than reason.
Ananth Kumar, a BJP leader considered to be neutral,
meets Sushma Swaraj, another opponent of Modi.
BJP’s Bihar leader Sushil Modi says the Gujarat chief
minister is the choice of party workers for prime
ministerial candidate.
FRIDAY
Shiv Sena spokesperson Sanjay Raut says his party
would welcome Modi becoming the BJP’s prime
ministerial candidate.
Singh and former BJP chief Nitin Gadkari meet,
followed by a meeting between Gadkari and Advani.
Kumar meets Swaraj, who is still reluctant to accept
Modi as the PM candidate.
Swaraj, Gadkari and Kumar reach Advani’s
30, Prithviraj Road residence.
Singh informs Shiv Sena chief Uddhav Thackeray
about the BJP’s decision to nominate Modi as its
candidate for the PM.
I MMA N U E L K A N T
Shiv Sena’s Rahul Narvekar says the BJP, as the
largest constituent of the National Democratic
Alliance (NDA), has the prerogative of deciding who
the PM candidate should be.
Sukhbir Singh Badal, a leader of the Shiromani Akali
Dal, an ally of the BJP, says his party is a “blind
supporter” of the NDA and would go with the BJP’s
choice for the top post.
Modi leaves Gujarat for Delhi.
Singh meets Advani again.
Joshi says there may be differences, but the party
stands united.
Modi arrives in New Delhi.
The BJP parliamentary board meeting starts.
Advani is absent.
Singh announces that Modi is the BJP’s prime
ministerial candidate for the next Lok Sabha election.
Graphics: Paras Jain/Mint Source: Mint research
can become the firewood for strike actions the fact that higher interest rates appear to
after a few years of painfully adjusting to have little effect on food price increases,
higher prices. In India, by contrast, unions which often reflect our relative lack of cold
look subdued, in large part because so much chain storage facilities for vegetables and the
work is informal, or, in the case of so many huge amounts of vegetables and fruits
micro businesses, in effect entrepreneurial wasted as a result. That challenge is being
self-exploitation to keep hunger at bay. But made worse this year by extreme weather
this week in Bengaluru, the events coming bunched together more
digital capital of the world, closely than ever before. Erratic rainfall
Price instability thousands of auto drivers played a part in the huge tomato price spikes
and app aggregator drivers recently and is now set to affect edible oil
is a global battle struck work with such a production with August being India’s driest
long list of demands that month in a century. According to a projec-
that has had no these seemed like a G20 tion from a US firm quoted in Mint this week,
victors so far communique in itself. Rid-
ing in the back of taxis, I
lower rainfall could affect the quality of the
soya crop and result in a drop in Indian pro-
and India’s own tried to understand some of
the issues in the days before
duction by almost a quarter. The country
finds itself extremely vulnerable to the nega-
record isn’t the strike. These ranged tive effects of climate change, not least
from resentment that in because our agriculture sector is such a lag-
boast-worthy our male chauvinist world, gard by global standards. Oilseed produc-
the Karnataka government tion productivity is half the global average,
has disrupted the natural for instance.
order of things by giving women free bus Last year’s G20 president, Indonesia, saw
rides, but also more justifiable anger against its CPI rise by just 3.3% in August, by con-
the huge commissions that companies like trast, and Brazil, which will take on that
Ola and Uber extract from drivers. Expect to mantle, saw inflation at 4.6%. One must be
see more such protests, especially since accustomed to fairytales to believe India’s
price rises are concentrated in food items. inflation management (and agriculture) is a
The RBI’s task is made more difficult by model for the rest of the G20.
LIVEMINT.COM VIEWS ThurSDay, 14 SepTember 2023
New Delhi 13

my VIEW | STaTISTICally SpEakIng M I N T C U R AT O R

India’s unemployment challenge The world must welcome the

ascent of mixed-gender sports
can’t be tackled by doles as usual These can be more interesting as they engage more of our faculties

Structural changes in our economy have resulted in improved education levels and provided a modicum of social security

HT

FAyE FLAM
is a Bloomberg Opinion columnist
covering science.

T.C.A. AnAnT
is a former chief statistician of India

T
he assumption that an athlete’s birth
sex dictates his or her performance
level has made transgender partici-

T
he National Statistics Office introduced
a regular survey on employment
through the Periodic Labour Force
Survey (PLFS) in 2017, and has since
been releasing regular annual and
quarterly reports. Its data shows that
since 2017, there has been a steady improvement
in the employment situation, with a rise in both
labour-force and work-force participation
between 2017-18 and 2021-22, as shown in the
accompanying table.
If these numbers are combined with the esti-
mated increase in population, then they show a
remarkable improvement in the availability of
employment opportunities. If we compare the data
with the last quinquennial survey of employment/
unemployment (i.e., the EUS) in 2011-12, then the
picture by 2021-22 is distinctly better.
This improvement in employment opportuni-
ties is accompanied by a clear downside: Indian
unemployment rates are higher than those in
2011-12. The gap was particularly large in 2017-18,
and has since reduced. However, even comparing
figures in 2021-22 to 2011-12 shows that unemploy-
ment is higher in all categories, and for rural males
has doubled since 2011-12. The increased unem-
ployment rate when combined with the increase in
population clearly shows that a far larger number
of people are looking for work than in the past.
What could be the cause of this seeming para-
dox? A conventional explanation has been that
India’s demonetization of high-value currency
notes in November 2016 followed by GST imple-
mentation in mid-2017 delivered a shock to the
economy, particularly its informal sector. This
shock is said to still persist, causing the high
unemployment rate; improved GST collections
are then attributed merely to improved perform-
ance of the organized formal sector.
It has also been argued that demonetization and
covid both caused substantial reverse migration
from urban to rural areas, and resulted in increased
dependency on agriculture.
However, neither of these explanations is borne
out by the data.
The problem with the first argument is that
the number of people identifying as being ‘self-
employed’ is higher now than in the past.
Students of economics know that there are
three categories of self-employed workers: own
account workers (i.e., those who work for them-
selves); employers; and workers in household
enterprises. Own-account workers and employers
can be considered a proxy for informal sector
enterprises.
In 2011-12, 52.2% of workers described them-
selves as being self-employed. In 2021-22, this fig-
ure had increased to 55.8%. Moreover, this charac-
teristic remains broadly the same across the two
pation in sports a lightning rod—but the Sail-boat racing is gender-neutral and men
issue is moot in coed sports, from competi- get beaten by women ISTOCKPHOTO
Many more Indians at work tive sailing to pickle-ball to e-sports. And in
The country recorded a steady rise in both labour-force and workforce participation between the future, athletics are likely to evolve so happiest when on the deck alone. The
2017-18 and 2021-22. that mixed-gender competition becomes Global Solo Challenge is the ultimate ultra-
Usual Status: Labour Force Participation Rate (LFPR), Work Force Participation Rate (WPR) and Unemployment Rate (UR) in % common. That will lead to a rise in sports marathon. One must eat enough, drink
that are just as rivetting but more inclusive. enough fluid and get enough sleep—some-
LFPR (ps+ss) WPR (ps+ss) UR (ps+ss) This is not to deny that men are, on aver- thing Brauer said you have to do in two-
age, bigger and stronger than women, and hour stretches even when the wind and
Rural Urban Rural Urban Rural Urban so have an advantage in sports like football, waves become violent. A medical team has
Male Female Male Female Male Female Male Female Male Female Male Female baseball, basketball, etc. Even Serena Will- taught her how to insert an intravenous
iams has said she doesn’t want to compete needle if she gets severely dehydrated.
68th (2011-12) 55.3 25.3 56.3 15.5 54.3 24.8 54.6 14.7 1.7 1.7 3.0 5.2 against men in tennis. There are several different solo races
PLFS (2017-18) 54.9 18.2 57.0 15.9 51.7 17.5 53.0 14.2 5.8 3.8 7.1 10.8
But men and women do compete in that go around the world, and more women
other sports—and these are the most inter- are competing all the time. While the Solo
PLFS (2018-19) 55.1 19.7 56.7 16.1 52.1 19.0 52.7 14.5 5.6 3.5 7.1 9.9 esting. They are contests not so much of Challenge allows communication with a
strength but of tactics, decisiveness, smart team, the Golden Globe race, first run in
PLFS (2019-20) 56.3 24.7 57.8 18.5 53.8 24 54.1 16.8 4.5 2.6 6.4 8.9
risk-taking, perseverance, courage and 1968, requires that sailors go solo around
PLFS (2020-21) 57.1 27.7 58.4 18.6 54.9 27.1 54.9 17 3.9 2.1 6.1 8.6 mental and emotional flexibility. These the world with no communication or mod-
include car-racing, shooting, archery, ern navigation technology. The 2022 win-
PLFS (2021-22) 56.9 27.2 58.3 18.8 54.7 26.6 55 17.3 3.8 2.1 5.8 7.9 equestrian events, free diving, and some ner of this extreme challenge was a woman,
extreme contests—bike races of over South African Kirsten Neuschäfer.
Source: Extracted from the Institute for Social and
Note: (ps+ss) = (principal activity status + subsidiary activity status) Economic Change (ISEC) Databank 1,600km, ultra-marathons that last for Yes, many currently popular sports
more than 160km, and the longest distance favour strength and size. But there’s much
SATISH KUMAR/MINT
race of all: round-the-world solo sailing. to learn by giving more attention to the
periods even if we restrict ourselves to those iden- doubling. The unemployment rate is also higher I declare a bias. I routinely compete sports that don’t. Sports can be re-imag-
tifying as own-account workers or employers. If for those with higher levels of education. One against men in shorter-distance sail-boat ined and re-engineered to be more inclu-
we take into account the increase in population reason for the rise in unemployment therefore is racing. I do it every week and I’ll keep it up sive and more accessible—not only based
between 2011-12 and 2021-22, the data suggests increased education levels among the young. As till I’m too decrepit to get into the boat. In on gender, but to people who don’t have
that there would have been a significant rise in the education levels improve, this will continue to be a sailing, separate men’s and women’s com- time to train for hours every day. In the
number of informal establishments. major source of unemployment, as more educated petitions exist, but the most challenging future, more people could enjoy doing
Further, while comparable data is not available workers would be unwilling to settle for unskilled events are open to all genders. Women sports as well as watching them on TV.
from the EUS, the PLFS does have data on the aver- work. It is important to note that since 2017-18, the have won. Cole Brauer is one of them. She Just look at the meteoric rise of pickle-
age monthly earnings of self-employed workers. data has shown a marked improvement in employ- recently won the One-Two Race, which ball, another sport in which men and
These figures show an increase between 2017 and ment among the youth in virtually all education goes from Newport, Rhode Island, to Ber- women commonly compete together, or
2022, and are comparable to earnings received by categories, again indicating that job availability has muda single-handed and back to Newport the popularity of e-sports, which aren’t
casual labour. Thus, it is unlikely that the contribu- been improving. double-handed. In a fleet of 25 boats, she sex-segregated.
tion of these informal enterprises to value-addition The second part of the explanation comes from won first place, with a female co-skipper on Future decades will see the invention of
will be significantly lower than previously esti- an increase in social security measures. The gov- the return. I met the 29-year-old at the new sports—and perhaps some will be
mated. This suggests that the sharp adverse impact ernment has increased the distribution—in both shipyard in Newport, where she’s prepar- designed so that so that people of different
of demonetization and GST on employment is quantity and coverage—of cheap food under the ing a 40-foot yacht to race non-stop around genders and body types can compete. In
unlikely to have been a reason for a rise in India’s National Food Security Act. This reduces the pres- the world—alone. Called the Global Solo such sports there would be no justification
unemployment rate. sure on an individual to take up work, allowing Challenge, this race isn’t just an adventure for restrictions on transgender athletes.
The argument of reverse migration also does not them to spend more time “looking for work”, and in survival but a high-stakes competition Everyone would be competing as a human.
stand up to scrutiny. contributing to a rise in the unemployment rate as against 25 other sailors. There are many reasons people will
In 2021, a special exercise was done as part of the compared to 2011-12, when no such social security She’s 5’2” and light. Being smaller is a always love watching and playing sports.
PLFS to assess the impact on migration. Its results was available. In addition, direct money transfers disadvantage in many sports but not long Sports show us how to recognize and
showed that the migration rate in 2020-21 was to farmer households and certain categories of vul- distance sailing. Brauer started sailing in take advantage of good luck without get-
nearly the same as that of the National Sample nerable populations would have also acted as a college at the University of Hawaii, crewing ting complacent, and how to overcome bad
Survey 64th round in 2007-08. Further, the pro- support mechanism. on a two-person boat. Since she had no luck without getting angry. They teach us
portion of workers in ‘usual status’ describing The rise in unemployment can thus be attrib- previous racing experience, she got paired how to recover from setbacks and mis-
themselves as being primarily in agriculture had uted to structural changes in the economy which with a skipper who had a tendency to take takes, and to push through exhaustion and
also reduced between 2011-12 and 2021-22. have resulted in improvements in education levels over. She insisted that he teach her to do discouragement. The best athletes muster
So, if there is neither a substantial fall in the and provided a modicum of social security. Neither her part, and then stay out of the way. Her just the right amount of aggression and just
informal sector, nor a return to agriculture, what of these amounts to a deterioration in the quality of forceful approach paid off for both—they the right level of confidence and decisive-
explains the country’s increased unemployment? life. While the presence of high unemployment— got into a national-level competition. She ness. Sports are a metaphor for life. And
First, let’s look at the age profile of the unem- particularly among the educated young—is indeed learnt to be skipper and took up sailing as just as our attitudes about sex and gender
ployed. Youth unemployment has increased sig- a policy challenge, its answer will not be found in a career. She made money by transporting change over time, so should sports change
nificantly between 2011-12 and 2021-22—nearly traditional solutions such as MNREGA. yachts to and from ocean races. She was for the better. ©BLOOMBERG

thEIr VIEW

Private labels offer Indian MSMEs an export pathway

growth. India is under-represented globally
ARPITA MUKHERJEE and such exports can be increased through
policy support. A private label product is one
that a retailer or e-commerce company can
get manufactured by a third party (usually an
MSME) to sell under its own store brand
a lifeline to MSMEs, helping them overcome
challenges like achieving brand appeal and
reaching customers in today’s competitive
business landscape.
Private labels also play a crucial role in
empowering MSMEs as they help increase
this helps in improving global competitive-
ness. At a country level, it contributes to
enhancing India’s reputation as a manufac-
turing and sourcing hub for global brands.
While this pathway offers numerous ben-
efits, some concerns arise related to con-
existing regulations, including those related
to the Consumer Protection (E-Commerce)
Rules, 2020, unfair trade practices, and dis-
pute resolution mechanisms. These over-
lapping regulations not only hinder business
ease, but also impede the integration of

I
ndia’s strategic focus on linking Micro,
Small and Medium Enterprises (MSMEs)
to global value chains, as highlighted at
G20 meetings and through our Foreign
Trade Policy, 2023, is undeniably a step in
the right direction. The MSME sector is one
of our largest employers, accounting for
29.2% of GDP and 36.2% of manufacturing
name. The private label market in India is on their revenue. Collaborating with private sumer protection from fake and deceptive MSMEs into global value chains through
the rise, driven by the emergence of orga- labels allows MSMEs to reviews of private-label e-commerce platforms. A well-designed,
nized retail formats, both physical stores and reduce dependency on a products online. There is transparent regulation will benefit all stake-
online platforms. This growth is fuelled by single product line or a Let’s set policy no specific law regulating holders—companies, MSME suppliers and
consumer preferences for distinctive, high- limited customer base, private labels in India, but consumers. Such a regulatory framework
quality products at affordable prices. With thereby gaining financial for small firms they are covered under var- should prioritize transparency, clarity, com-
the rise in disposable incomes and consumer stability. Private labels ious regulations. Labelling petition, non-discrimination and a level
aspirations, users of unbranded products are enable small enterprises to
to succeed as rules and norms for private playing field between store and non-store

is an economist and professor

at the Indian Council for
Research on International
Economic Relations.
output in 2021-22. However, the share of
MSMEs in our exports has declined from
49.4% in 2020-21 to 43.6% in 2022-23.
While the Indian economy is on a fast-
growth trajectory, considering the global
economic outlook, MSME exports are going
through a tough time.
In this uncertain global scenario, the role
of MSMEs as drivers of India’s growth and
employment cannot be undermined. To
enhance their output, enable exports and
bolster their overall contribution to India’s
economy, multiple steps can be taken. For
example, while many MSMEs operate as
contract manufacturers at present, sourcing
by private labels from India has space for
shifting to branded versions. This offers an
opportunity for companies to launch private
labels as affordable alternatives to dearer
branded equivalents. Shoppers Stop, Reli-
ance Retail, Spencer’s, Ajio, Amazon, Big
Basket, Nykaa, Flipkart, Pepperfry and Tata
CliQ et al have effectively used their stores or
web platforms to expand their private label
offerings, giving consumers greater choice.
Private labels have flourished across catego-
ries from food and apparel to cosmetics. By
one estimate, the share of private labels in
the Indian online beauty and personal care
market, for example, has increased to over
12% this year. This trend is not only changing
consumer shopping habits but also offering
reduce marketing costs by
leveraging the retailer’s
label suppliers labels in India, for example,
could be covered under the
formats, which would help expand the reach
of Indian MSMEs in both domestic and
established channels and
customer base, fostering
as digital trends Legal Metrology Act.
While there is a need for
global markets eventually.
To meet current demand, it is imperative
domestic and global open up vast our e-commerce rulebook for the government and companies to forge
expansion, resource-effi- to provide clarity on the partnerships and collaborations aimed at
cient growth and innova- opportunities roles and responsibilities of onboarding a greater number of MSMEs
tion. By making private sellers and marketplaces, onto e-commerce platforms, aligning this
label products, small busi- any rigid clauses that effort with a core G20 objective and India’s
nesses can tap the established supply chains restrict companies from selling their own Foreign Trade Policy 2023. This will not
of large retailers with wide market reach to private label products could stifle the growth only enhance their presence in the domestic
maximize their production. They also face of MSMEs using e-commerce platforms. market, but also strengthen their integration
reduced competition if they secure exclusive Hence, adopting a prudent approach to reg- into global value chains. A limited view will
supply deals. All this affords MSMEs revenue ulating private label sales on e-commerce stymie efforts to increase exports and we
stability and helps them secure finances. On platforms is of paramount importance. First, must explore all opportunities that the world
a global scale, involving export orders, all we need to pinpoint and address gaps in offers our MSME manufacturers.
14 ThurSDay, 14 SepTember 2023
New Delhi BUSINESS OF LIFE CULTURE LIVEMINT.COM

A new experimental space

for free thinking in theatre

French master
jeweller’s art
now on display
Carvin French has supplied jewellery
to Tiffany, Cartier and Bulgari
Agencies
feedback@livemint.com

M
iniature lamps encrusted with diamonds and rubies; ani-
mals and plants carved out of gold and emerald: reclu-
sive French master jeweller Andre Chervin, who has
supplied the world’s most elite brands, is finally putting his own
art on display in New York.
“This collection represents a lifetime of work,” Chervin, 95,
said in a statement to the New-York Historical Society. “I was able
to choose myself what to make, and when, and exactly how I
wanted them. I was free from the constraints that naturally come
Nirdighanta has been Nirdigantha was set up in early 2023 by actor to Mysuru, where I live, and I simply had to be a when you are manufacturing for a customer’s order.”
Prakash Raj. At first glance, it is easy to assume part of this,” she says. Born in Paris in 1927 into Jewish family, he received his train-
envisaged by actor it’s a theatre school. Raj is quick to disabuse the Raj has envisioned the space to be inclusive ing at the prestigious Haute Ecole de Joaillerie and emigrated to
notion. “The idea is to make a space for an incu- for all kinds of creative expression. Take, for New York in 1951. There, together with another aspiring French
Prakash Raj as an bator, for different directors and different play- instance, a film on covid-19, shot on a mobile jeweller, Serge Carponcy, and with $2,000 in hand, he founded
ers to experiment,” he says. “It is easy to open a phone, by a 22-year old. It caught his attention the atelier Carvin French in the heart of Manhattan, which for
incubator that will drama school, but there are already so many of sometime back and the actor decided to pro- decades has supplied jewellery to top names such as Tiffany and
expose theatre artistes them. The problem is what do students do next?
There is no place to experiment, no place to
mote it. The film is currently being shown
across prominent film festivals. “I want young-
Co., Van Cleef & Arpels, Cartier and Bulgari.
Chervin shies away from public attention and does not grant
to all forms of creativity know if they are relevant. Nirdigantha wants to sters to experiment with music, with space, with interviews.
fill that gap.” colour. Nirdigantha cannot and should not be “This exhibition was never envisioned by my father. In fact, it
The concept borrows from highly successful limited to theatre,” he says. was not easy for me to convince him that there even should be an
Anita Rao Kashi incubators in Europe and the US that are half a A sense of community lies at the heart of the exhibition,” his daughter and vice president of the atelier Carole
feedback@livemint.com century old or more. It has taken several years of experimental space. The artistes help out in the Chervin told AFP. “He’s a very private man, humble, modest. He
soul-searching and brainstorming to arrive at garden in the morning and later in the kitchen. did all of this work, as I said, as a pas-
ess than 10 minutes from Srirang- this current form. Raj feels that there is so much The space offers employment to the locals, and Andre Chervin sion... he wasn’t seeking publicity.”

L apatna, near Mysuru, Lokapavani,

a tiny tributary of Cauvery curls its
way through a portion of Mandya
district. Near K Shettihalli village,
the rushing waters calm into a placid rhythm,
the gurgling becoming a whisper. On either side
of the Lokapavani, lush vegetation abounds,
and a gentle breeze blows from time to time.
Occasionally muffled sounds and bits of con-
versation are heard from time to time. Seats are
scattered across a little clearing, offering visitors
an opportunity to soak in the tranquillity. The
serenity feels boundless. It is only apt and poetic
that the space is called Nirdigantha, or the
unending, horizon-less. Spread across five
acres, the space offers an undulating view of
nature. A handful of buildings, all in earthy
tones, dot the expansive space.
It is easy to mistake the place for a resort. But
its purpose is far more dramatic—quite literally.
A large structure, with an enormous gabled roof
and open sides, stands out from among the clus-
ter of buildings. The previously-muffled sounds
become clearer now. Within a large sunken
space, nearly a dozen actors are immersed in
rehearsing a play. Director Shripad Bhat stands
at one end, frequently interrupting to correct,
coax, encourage and compliment.
more to be added still. The project is entirely
bootstrapped by him but the actor expects
investors and sponsors to join in at some point.
The idea is simple: Nirdigantha offers space
and funding to a director to develop a play, audi-
tion his team, workshop and rehearse for 45
days, and then take it on the road for three Prakash Raj (above); rehearsal space at
their children come to watch all the plays.
Raj’s commitment to the project is evident
from his attention to the smallest of details. He
makes suggestions, adds corrections and checks
in on tasks. His presence is always engaging as
he adds witty asides and peppers the conversa-
tion with dramatic renditions from plays and
months. “During this duration, they don’t have Nirdigantha (top) PHOTOS: ANITA RAO KASHI funny punch lines.
to worry about money, food, accommodation, When I ask him if he considers Nirdighanta as
and more,” he says. As one team hits the road, dello. It opened in end July to rave reviews. his legacy, he is reluctant to agree. “It gives me
the next batch moves into Nirdigantha, and the During their time at Nirdighanta, Raj hopes joy, meaning, and some peace. I don’t see it as
process starts all over again. that the participants will be exposed to all kinds my legacy, but it does give some relevance,” he
While sitting in a little gazebo, his gaze occa- of writers, playwrights, artistes and creative says. ‘Relevance’ is a word that comes up often
sionally strays to where the actors are rehears- people. “This is not a space to teach anything; in conversations with him, whether it is about
ing. “The idea is not to do an existing play. In the this is a space to sharpen their perceptions and current trends in theatre, of plays revolving
next two years, we ways of expression, to around political and current issues, the state of
want at least 20 new see life in its different the nation, and more. He has been ruminating
theatrical plays and Nirdigantha offers space and dimensions. I want to about his own relevance as well.
250 actors – some old, funding to a director to develop give them strength so “If one is not relevant, then one is a burden
some new, some who they can fly; I don’t on earth,” he quips. “Our education system
have just passed out - a play, hold workshops, and take want to tell or decide does not account for changes that will happen
to have emerged from it on the road for three months where they should a decade from now. By the time children finish,
Nirdighanta,” says fly,” he says. their learning is already irrelevant. That futur-
Raj. The first one by Author Preethi istic vision is lacking; there’s no effort to even
Bhat, titled Gaayagalu (wounds) draws from Nagaraj has joined the board as a permanent look for what might be. Nirdigantha is this
works by such playwrights and dramatists as member and serves as the creative director at search—to find a solution together. I haven’t
Kuvempu, Krishnamurthy Hanur, Sadat Hasan the incubator. “Nirdigantha is such a wonderful found it yet, but I want to be on that journey of
Manto, Rabindranath Tagore and Luigi Piran- experiment that promises to grow. It is so close discovery.”
co-founded the
atelier Carvin
French in the
heart of
Manhattan
In addition to brooches, bracelets,
rings and earrings in diamond, sap-
phire, emerald, ruby, gold and silver,
the exhibit will feature wonders of dec-
orative art produced by Chervin’s
small workshop, which still operates to
this day.
Among them is a boudoir lamp,
titled “My Heavy Heart,” composed of a citrine heart mounted on
an 18-carat gold wheelbarrow overflowing with coloured dia-
mond flowers, and a bedside lamp “The Frogs’ Rubies,” made of
ruby slabs. There is also a strawberry bush with fruits carved out
of red coral with nephrite leaves.
These objects, taken for the first time from Chervin’s home in
New York, show that the artist “has a very close relationship and
a very touching relationship with nature,” said exhibit curator
Debra Schmidt Bach. “He’s a great admirer of nature.”
Chervin has been at the helm of Carvin French for 60 years,
and Schmidt Bach says among his strengths has always been find-
ing and cultivating talented artisans, many of them from over-
seas. “Andre says that he felt sometimes like he was a conductor,
conducting an orchestra of incredible talents and artisans who
had amazing skills,” she added.
New York was another key factor to Chervin’s success. “The
reason we were able to attract such a wonderful roster of jewel-
lers, lapidaries and artisans is because it was in New York,” said
Carole Chervin. “It was a veritable United Nations of talent as my
father says.”

Best of the bean : Around India in eight coffee shops

Coffee shops that cover KANA BY COFFEE MECHANICS, called Coffee? by the same proprietors is babka bread), this Anjuna coffee shop is a
BENGALURU this brand new place. Housed in a leafy must-visit. Besides the moist, pull-apart
every iteration, from This coffee shop augments Bengaluru’s converted cottage at Teynampet, this one babka, it serves the most perfect Ameri-
affogato to a desi reputation as a city that happens to be is all about the community aspect of cof- cano this side of Italy. This, along with
home to some of the best artisanal coffee fee drinking; a huge communal table other speciality coffee blends and a range
dalgona to civet cat in the country. The menu of this place, encourages strangers to come together of baked goods and savouries to make the
droppings coffee located in HBR Layout, is full of single-es- and bond over a cuppa. They use the state perfect all day cuppa experience.
tate options like the cedarwood-jaggery of the art Italian Sanremo Opera coffee
Cauvery Peak from Yercaud and the fruity machine, which is teamed with Flow, an CURIOUS LIFE COFFEE ROASTERS,
Raul Dias Manavam from Koraput. While it does the innovative coffee telemetry system that JAIPUR
feedback@livemint.com expected espressos and cortados, one can ensures consistency. This means every While this coffee shop might have
also have a flirtation with options like the cup of foamy cappuccino and every jit- started out as being one of the first places

C
onsidered a passing phase by the
tea drinking cognoscenti, India’s
burgeoning coffee culture is
clearly more than just an ephemeral trend.
There is very little doubt that the winds
now blow in fond favour of coffee though
we may traditionally have largely been tea
lovers.
Millennials and Gen Z are more aware
of global trends in coffee culture, thanks
to exposure through social media, travel,
and the proliferation of international cof-
fee chains in India. As per research con-
ducted by polling and market research
company YouGov, since the outbreak of
the covid-19 pandemic, the younger gen-
eration is more likely to opt for a cup of
coffee than their predecessors
All this signals the need for trendy, hip
new coffee places. Here are eight places
around the country that capture the zeit-
geist perfectly:
apple pie latte, the cold brew orange cof-
fee soda, and our personal favourite, the
litchi coconut iced coffee.
AFFOGATO, MUMBAI
Veering down an experimental path as a
hybrid coffee shop-gelateria, Affogato, as
its name suggests, has the delicious Italian
coffee-gelato based beverage named affo-
gato al caffè at its core. With its Bauhaus-
ean architecture-influenced sand-hued
interiors, highlighted by plenty of curves
and rounded corners, this pet-friendly
Khar coffee shop serves a range of coffees
from sister brand Javaphile. These take
the form of a yummy sea salt mocha, a
spiced latte and an espresso hot chocolate.
For those who like it chilled, call for the
tiramisu frappé, toffee nut frappé or the
mint mocha frappé. Not forgetting the
hot-cold wonder of a salted caramel or
almond affogato, among other iterations.
Affogato and cookies at Affogato, Mumbai
All made with gelato from another sister
brand Crèmeyum.
MELT BAKE HOUSE, NEW DELHI
This recently opened coffee shop in Vas-
ant Vihar’s Basant Lok Market is a coffee
lover’s paradise. Not only does it offer a
rotating selection of five blends and coffee
bean varieties to sip in situ, but one can
also have the beans specially ground and
taken home. To go with the coffee are a
range of savoury baked items and a slice of
perfectly made Biscoff cheesecake.
BASK BY COFFEE, CHENNAI
Replacing an earlier coffee shop simply
ters-inducing shot of a double espresso
comes with the guarantee of being the
best in the city.
THE CAFÉ STORE, KOLKATA
Don’t be misled by the ‘store’ part in the
name of this European-style coffee shop
in the Kankulia neighbourhood of the city.
A rather underground sort of place known
to only those with a serious yen for good
coffee, here one can find some truly artisa-
nal roasts and unusual bean blends. This
place is probably the only one in India to
serve one of the rarest coffees—the Luwak
(civet cat droppings coffee) from Indone-
sia. Also, don’t miss out on ordering a
flight of coffee shots in varying degrees of
potency and strength.
BABKA, GOA
With its decidedly European feel (and
flagship product of the East European
in the Pink City to offer coffee beans
roasted freshly onsite, this C-Scheme
place has a newer, more exotic ace up its
sleeve these days. Made with a thick
splodge of condensed milk, the ca phe
sau da or Vietnamese iced coffee, is
drawing in the crowds. Equally popular
is their Vietnamese cold brew for those
who like their coffee with a fruity fla-
voured twist.
BOOKS N BREW, CHANDIGARH
Known for hosting book readings, live
music sessions, open mics, and poetry
recitals, there is one type of coffee that this
place does that I’ve not seen at any other
place. I’m talking about the desi dalgona
doppelganger called pheti hui coffee.
Divine and unctuous with a creamy head
is this beaten coffee that jostles for space
on the menu with other iterations of hot
and cold coffee drinks.