MONDAY, 26 FEBRUARY 2024

20 pages in 1 section www.business-standard.com

MUMBAI
~13.00
VOLUME XXVIII NUMBER 166

How markets performed last week

% chg over Dec 29, ‘23
Index on *One- --————————————————————————————————————————————————————————

Feb 23, ‘24 week Local currency in US $

Sensex 73,143 1.0 1.2 1.6
Nifty 22,213 0.8 2.2 2.5 WORLD P8 BACK PAGE P20
Dow Jones 39,132 1.3 3.8 3.8
Nasdaq
Hang Seng
15,997
16,726
1.4
2.4
6.6
-1.9
6.6
-2.0 BUFFETT:BERKSHIRE’SDAYSOF AMENDED SURROGACY LAW
EYE-POPPINGGAINSAREOVER LIKELY TO BOOST MARKET
Nikkei# 39,099 2.5 16.8 9.5
FTSE 7,706 -0.1 -0.3 -0.8
DAX 17,419 1.8 4.0 1.9
#As on Feb 22; *Change (%) over previous week Source: Bloomberg P U B L I S H E D S I MU L T A N E O USL Y FRO M AHM E DA BAD , BE NGA LU RU, BHO PAL , B HUB ANES W AR, CHAND I G ARH , CHE NNAI , HYD E R A B AD , K OC HI , K OL K ATA , L U C K N OW , M U MB A I, N E W DE L H I A N D P U N E

AFIRST: RURALSPEND
ON NON-FOOD ITEMS Permanent solution Row over EGM results
ABOVE 50% IN 2022-23
Averagespendingonnon-fooditemsby
ruralIndiasurpassedthe50percentmark to food security may adds to Byju’s troubles
forthefirsttimein2022-23,with SURAJEET DAS GUPTA
THE SEVEN RESOLUTIONS
be some time away
adeclineintheproportionoftotal New Delhi, 25 February
expenditurenowallocatedtofood
items,accordingtothelatestHousehold After the controversial extraordi- >Consider >Board to have nine members — founder, 2 executives
ConsumptionExpenditureSurvey nary general meeting (EGM) at changes in of the company, 3 shareholder directors, and
releasedbytheMinistryofStatistics Byju’s on Friday, differences have board structure 3 independent directors
andProgrammeImplementation. emerged on its resolutions,
4>
WTO draft text proposes to including the one on the removal
>Forensics to investigate alleged breaches, on
tax filings, regulatory affairs, etc
>CITY RENTS PINCH MORE THAN BEFORE P4
‘agree, adopt’ a binding of the chief executive officer (CEO)
from the board. >RemoveCEOByju >Identify an interim
framework until next meet The meeting was called by some Raveendran,hiswife, chief executive officer
Disney, Reliance ink pact SHREYA NANDI & SANJEEB MUKHERJEE
leading investors such as Prosus
and General Atlantic and there
andbrotherfromall and appoint a firm to
to merge media business New Delhi, 25 February were seven resolutions at the EGM.
managementroles search for a new CEO
WaltDisneyandRelianceIndustrieshave In a communication to his team >Until further notice, no founder is allowed

A
signedabindingpacttomergetheirmedia draft text ahead of the World Trade members, CEO Byju Raveendran to undertake transfer — direct or indirect —
operationsinIndia,accordingtopeople Organization’s (WTO’s) 13th minis- has pointed out only 35 of the 170 of any shares, rights, title or interest
familiarwiththematter,astheUS terial conference (MC13) has pro- shareholders, representing only 45 in subsidiary, associate companies
entertainmentgiantrecastsitsstrategy posed to “agree and adopt” a perma- per cent of the shareholding, voted
amidintensecompetitioninIndia. 2> nent solution to public stockholding for food in favour of the resolutions, show- >Authorise executive members of board of
security until the next ministerial meeting. ing the limited support that the directors to take such further actions as may
This means a permanent solution India has “irrelevant” meeting received. be necessary to implement these resolutions
been negotiating hard for may be pushed back
by another two years, since the conference is WHY IT MATTERS TO INDIA Sources added they had pointed
out that was not even a simple
ILLUSTRATION: BINAY SINHA

BYJU’S HEADING FOR A LONG LEGAL BATTLE

ON
SPECIALS MONDAY
BANKER’S TRUST
Howlongwillthebullrun
continueforPSUbanks?
In the past year, the S&P BSE Bankex has
been up 17.63 per cent and the Nifty Bank
17.04 per cent. But the Nifty PSU Bank
Index has risen close to 95 per cent!
TAMAL BANDYOPADHYAY writes
MONEYMANAGER
Thenewfaultlines
With RBI’s action on Paytm Payments
Bank, it may be time to put the
spotlight on a few lingering issues,
reports RAGHU MOHAN
generally a biennial meet. The other option
mentioned in the draft is to adopt a permanent
> India wants
fast-tracking of
> Procures foodgrain
at MSP and subsidises
majority and the EGM was illegal.
Turn to Page 6 > WITH CEO DIGGING IN HEELS: EXPERTS
PAGE 2
solution in MC13, expected to start from
February 26 in Abu Dhabi.
a permanent them through public
solution on public distribution system,
The outcome, however, will be clear after
stockholding for claiming that it safeguards
the final round of talks this week. PAGE 4 BACK PAGE P20
Meanwhile on Sunday, G33 group of devel- food security millions from hunger
oping countries in a statement urged all WTO > MSP, particularly for rice, faces scrutiny COMPLIANCE, INNOVATION ON BULLET TRAIN: VANITY TO VISION
member nations to make a concerted effort to
agree and adopt a permanent solution on the
underWTO trade norms, as subsidies have
exceeded suggested limits thrice
TABLE AT FM-FINTECH MEET Between the construction of the BKC station of the
matter since public stockholding for food secu- Finance Minister Nirmala Sitharaman, along Mumbai Metro Aqua Line, flyover projects in the
rity purposes is of ‘critical importance’ to devel- > Invokes peace clause > Finds support from with a Reserve Bank of India deputy vicinity, and rapid development of real
19 > underWTO norms to shield developing nations,
oping countries. governor, will meet heads of top fintech estate in the area, there has been little
“The G33 co-sponsoring members reiterate food procurement from but developed firms, including Amazon Pay, Zerodha, respite for those who come here.
sanctions in case of countries see this as a
the importance of the proposal submitted with LendingKart, Pine Labs, and Cred, on Sequestered from the din lies a 1-km
the African Group and the African, Caribbean, breaching subsidy limit roadblock to trade Monday to discuss regulatory issues in the patch of land, where nearly 800
and Pacific Group, and invite other members sector. Sources said Paytm is unlikely to be workers toil every day. This rubble will
to engage constructively with the elements purposes in MC13,” according to the G33 a part of the meeting. RUCHIKA eventually become the birthplace of
contained therein, as a basis to achieve out- ministerial statement on agriculture trade CHITRAVANSHI & AJINKYA KAWALE write India’s first bullet train. DHRUVAKSH SAHA explores
18 >
come on public stockholding for food security negotiations. Turn to Page 6 >
2 COMPANIES
>
MUMBAI | MONDAY, 26 FEBRUARY 2024 1

Byju’s faces long legal battle as CEO digs in heels: Experts

PEERZADA ABRAR
Bengaluru, 25 February
The escalating conflict between Byju’s
leadership and its investors, who are
intensifying efforts to remove Byju
Raveendran as chief executive officer
(CEO) and drop his family members from
the board, may evolve into a protracted
and intricate legal battle, according to
industry sources and legal experts. They
said the ongoing episode may negatively
impact the edtech giant’s operations and
market reputation.
People close to Raveendran and
industry sources said that he has no
intention of stepping down as CEO and
is prepared to fight the investors “tooth
and nail” to ensure that he and his family
members retain control of the firm.
Raveendran has told employees that he
has personally put in $1.1 billion in the
company over the past two years to cover
salaries and maintain operations.
“Raveendran has been raising money
from loan providers by giving personal
guarantees to help the firm survive,” said
a person close to the Byju’s CEO.
Sonam Chandwani, managing part-
ner at law firm KS Legal & Associates,
said: “Byju Raveendran, known for his
deep commitment and immense person-
al sacrifices for the company, is unlikely
to step down without a fight. This resist-
ance could lead to protracted legal dis-
putes, making the situation messier and
potentially impacting the company’s
operations and market reputation.”
During an extraordinary general
meeting (EGM) on Friday, Byju’s investors
voted and passed resolutions, including
the removal of Raveendran as CEO,
according to Prosus, the Dutch invest-
ment firm which owns about 9 per cent
of the edtech company. They also passed
resolutions to change the board, which
includes Raveendran’s wife and co-
founder, Divya Gokulnath, and his broth-
er Riju Ravindran. According to investor
sources, holders of over 60 per cent of
the cap table voted in favour. They said
that Byju’s founders hold 23-25 per cent
of the cap table.
The investors conducted the EGM on
Friday as they were “deeply concerned”
about outstanding governance, financial
mismanagement, and compliance issues
and wanted a change in leadership of the
company. Raveendran and his family
didn’t attend the meeting.
vival of Byju’s itself becomes a central Agreement, further reinforced by the pre-
concern. “Regardless of who emerges vic- vailing company law. These documents
RESTASSUREDTHATIAMNOTTAKING torious in this power struggle, the pro- collectively form the constitutional back-
longed uncertainty and internal conflicts bone of the company’s operations, setting
ANYOFTHESEALLEGATIONSLYINGDOWN could harm the company's stability and out the rules and procedures by which
ANDWILLCHALLENGETHESEILLEGALAND growth prospects,” said Chandwani of KS
Legal & Associates. “For a firm that once
everyone must abide.
Raveendran alleged that during the
PREJUDICIALACTIONS” symbolised the meteoric rise of edtech,
this infighting and legal wrangling could
EGM on Friday, a lot of these essential
rules were violated. Quoting American
Byju Raveendran signal a cautionary turn in its journey.” writer Mark Twain, he said: “A lie can
CEO, in a letter to Byju’s Ashlesha Gowariker, senior partner at travel halfway around the world while the
employees after the EGM on Friday law firm Desai & Diwanji, believes that truth is still putting on its shoes.”
the investors calling the EGM and its out- Meanwhile, a group of four investors
come could have a significant impact on have filed an oppression and misman-
the founders. “This is the start of the agement suit against the company’s man-
proceedings that could ultimately result agement in the National Company Law
Decisions taken at the EGM are sub- letter addressed to the employees, a in the founders no longer holding office Tribunal (NCLT), Bengaluru Bench, to
ject to a hearing scheduled on March 13 copy of which has been seen by in the company they started,” said declare the founders unfit to run the com-
by the Karnataka High Court. Think and Business Standard. Gowariker. “This would be a rare situa- pany. The group has also asked for the
Learn, the parent company of Byju’s, had He said the claims made by a small tion in India, where the promoters appointment of a new board, declaring
filed a plea in the court on February 21 group of select minority shareholders might be ousted from office due to the rights issue as void.
opposing the EGM. that they have unanimously passed the activist shareholder action.” The company has raised $5.08 billion
After the EGM, Raveendran reached resolution in the EGM are completely Gowariker said the EGM outcome from investors. The cash-strapped firm
out to the company’s 15,000 employees wrong. Raveendran said that only 35 out adds uncertainty to the functioning, is now looking to raise $200 million via
and told them that the management of 170 shareholders (representing around operations, and oversight of the business the rights issue. If that goes through, its
remains unchanged, and the board 45 per cent of shareholding) voted in and affairs of the firm. post-money valuation will be between
stays the same. “Rest assured that I am favour of the resolution. That in itself However, Raveendran, in the letter, $230 million and $250 million, a 99 per
not taking any of these allegations lying shows the very limited support that this asserted that the governance of the com- cent drop from the $22 billion
down and will challenge these illegal and “irrelevant” meeting received. pany is anchored in the Articles of valuation the firm had in 2022, according
prejudicial actions,” he said in the In this high-stress scenario, the sur- Association and the Shareholder to the sources.

Disney, Reliance ink pact

IN BRIEF

M&Adealsdown10% Overseas loans’

share in Adani
to 793 in 2023: PwC
The number of merger and
acquisition (M&A) deals dur-
ing 2023 dropped by 10 per
cent on an annual basis to
throughout the year, the deal
activity stabilised towards the
last quarter leading us to
anticipate an upswing in
to merge media business group debt falls
RIL media arm and its affiliates will hold at least 61% in the new entity
793, said a PwC India report
on Sunday.
2024,” said Dinesh Arora,
Partner & Leader Deals,
DEV CHATTERJEE
Mumbai, 25 February THE DEBT
However, the total
disclosed deal value
PwC India.
In the calendar
ANTO ANTONY, BAIJU KALESH & P R SANJAI
25 February The share of foreign loans in
DYNAMICS
for M&A declined year 2023, the retail total Adani group debt portfo- >Foreign loans in Adani

W
much steeper at 38 and consumer sec- alt Disney and Reliance lio dropped to 61 per cent by Group debt portfolio
per cent during tor emerged as the Industries have signed a bind- September 2023 from 63 per decreased from 63%
the year, according most active sector ing pact to merge their media cent as of March 2023, as the (March 2023) to 61%
to the report titled with technology operations in India, said people familiar group repaid part of its foreign (September 2023)
‘Deals at a glance’. finishing up margin- with the matter. The Reliance’s media loans and refinanced part of
The report further ally behind for the sec- unit, controlled by Mukesh Ambani, and older loans. >Share of Indian lenders
increased to 39%
observed that PE (Private
Equity) investments totalled
ond consecutive year, PwC
said. Top 10 deals of 2023
its affiliates are expected to own at least
61 per cent in the merged entity, with THE BIG The share of Indian
lenders, on the other hand, (September 2023) from
$36 billion, marking a sub-
stantial 36 per cent drop
included JV buyouts, strate-
gic investments, PE buyouts,
Disney holding the rest, the people said,
asking not to be identified as the infor-
PICTURE rose to 39 per cent in the total
debt pie in September 2023
37% (March 2023) after
Hindenburg Research’s
from 2022. and stock mergers and con- mation is not public. >Announcement of the deal and >Reliance may consider acquiring Tata Play, from 37 per cent in March after report in January last year
Despite a restrained tributed 21 per cent of the The latest milestone, along with other details likely in the next few days in which Disney owns a minority stake a report by US-based short sell-
deal-making environment total deal value. PTI details, are likely to be announced early er Hindenburg Research in >Total group debt remained
this week, the people said. >Disney is grappling with challenges such as retaining subscribers January last year, which led to at ~2.26 trillion
A Disney representative declined to and securing coveted media assets volatility in the share prices of
>Adani Ports & SEZ has the
TaMo: PV sales growth may comment. A Reliance spokesperson did
not immediately respond to a query on >Ambani’s unit had outbid Disney in 2022 to win the streaming rights for IPL
group companies. The group’s
total debt remained static at
highest foreign debt at
$4 billion, followed by Adani
moderate to below 5% in FY25
the signing of the binding pact. ~2.26 trillion in the same peri-
The stake split between the partners od. The group, which recently Energy Solutions and Adani
may change, depending on how Disney’s Together, they would make a formidable showed the matches for free in the crick- met investors via roadshows Green at $2.5 billion and
The growth of the domestic passenger vehicle industry is likely to other local assets are factored in by the media behemoth in one of the world’s et-crazy nation — a move aimed at claw- in key cities across the world, $1.57 billion, respectively
moderate to less than 5 per cent in the next financial year (FY25), time the deal is closed, the people said. fastest-growing entertainment markets. ing back subscribers even if it meant sac- has attracted investments in
said Tata Motors Passenger Vehicles Managing Director Shailesh Disney owns a minority stake in broadcast Ambani’s unit had outbid Disney in rificing revenue. Reliance had streamed bonds from investors in the
Chandra. The firm expects electric vehicle sales to keep growing service provider Tata Play Ltd., which 2022 to win the streaming rights for the IPL matches earlier in 2023 without any secondary market such as
despite the slow pace of charging infrastructure development in Reliance may consider acquiring, accord- Indian Premier League (IPL) cricket tour- charge, drawing viewers in hordes. BlackRock, AIA, PIMCO,
the country. “We saw a strong growth in FY23 of 25 per cent, which ing to news reports. Disney has been grap- nament and bagged a multi-year pact in Disney has been mulling options for Fidelity, Apollo, MetLife, and
is likely to moderate in FY24 to about 8 per cent. Therefore, we are pling with challenges in India such as April to broadcast Warner Bros Discovery its business, including an outright sale or Goldman Sachs, among other
seeing with this high base effect, and FY25 will be slightly retaining subscribers and securing covet- Inc.’s HBO shows, which were earlier with setting up a joint venture with partners investors, according to a pres-
challenging with less than 5 per cent growth rate,” he said. PTI ed media assets, while Reliance has cor- Disney. While Disney+ Hotstar managed since July. This transaction is part of the entation made to investors.
nered a larger slice of the local media and to draw record viewers for the Cricket larger consolidation efforts in the media At present, Adani Ports and
entertainment businesses in recent years. World Cup in October and November, it and entertainment space. BLOOMBERG Special Economic Zone has

Zydus gets WHO nod for API the highest foreign debt with
$4 billion raised from bond

used in kala-azar treatment

investors, followed by $2.5 bil-

Ahmedabad-headquartered Zydus Lifesciences has received

VinFast starts building EV unit in TN lion raised by Adani Energy
Solutions and Adani Green at
$1.57 billion, the presentation
The transactions would be
announced soon, said a
banker close to the
the World Health Organization’s (WHO’s) prequalification showed. The airport business transaction.
approval for the bulk drug or the active pharmaceutical Firm seeks import duty cut; unit may see an initial investment of ~4,000 crore has also raised $750 million as “The bonds have recovered
ingredient (API) of the key drug to treat Leishmaniasis or Kala- foreign bonds. as the shares and investors
Azar, called Miltefosine, the company said. This would enable SHINE JACOB the construction of the first least 70-80 per cent for a select per cent cut on import duty on Investment in Adani Group have gained in the past few
larger access to the drug globally as it would be added to the Chennai, 25 February phase of its integrated EV hub, number of cars. This, according EVs. Tesla’s entry has fallen bonds in the secondary mar- months, and hence the
WHO prequalification list. According to the WHO, there are which may see ~4,000 crore of to the company, is until cus- into the slow track as the gov- ket has increased after renewed interest in new
three main forms of the disease: Cutaneous leishmaniasis, Vietnam-based electric vehicle investment initially and will tomers get familiar with the ernment is yet to come out investors identified the infra- bonds,” said a banker
visceral leishmaniasis, also known as kala-azar, and maker VinFast, a rival of Tesla create more than 10,000 jobs. brand. Chau — who has with a favourable structure sector as a theme for close to the transaction.
mucocutaneous leishmaniasis. SOHINI DAS in the global market, has set The Thoothukudi project aims served as Vietnam’s response. “With the investment in India, a positive On February 20, Fitch
foot in India and began work to evolve into a first-class elec- ambassador to India, addition of names outcome from the Supreme Ratings affirmed the ‘BBB-’
on building its ~16,000 crore EV tric vehicle production hub in Nepal, and Bhutan like Vinfast to the list Court on Hindenburg rating on the $400 million sen-
manufacturing facility at the region, with an annual between 2018 and 2022 of EV Manufacturers Research investigations, ior secured notes issued by
DLF to launch projects Thoothukudi in Tamil Nadu on
Sunday. The company has
capacity of up to 150,000 units.
According to a report in
— was appointed as the
CEO of the firm in India
in Tamil Nadu, we are
proud that Chief
and recent upgrades by global
rating firms.
Adani Energy Solutions, (for-
merly known as Adani
worth ~80K cr in 4 yrs already sought a reduction in
import duties on its cars for
Reuters, the firm’s India chief
executive officer, Pham Sanh
in November last year.
He said the Central govern-
Minister M K Stalin has
closed in on his aim of making
A spokesperson for Adani
Group declined to comment.
Transmission), with a ‘stable’
outlook. The group is expected
Realty major DLF plans to launch properties worth nearly ~80,000 about two years until cus- Chau, said on Sunday that it ment is still considering the Tamil Nadu the EV capital of Group executives plan to to end 2023-24 with earnings
crore over the next 3-4 years to tap rising demand for housing and tomers get familiar with the has already proposed a two- request by the company. This South Asia and not just India,” raise funds worth $2.6 billion before interest, tax, deprecia-
commercial projects. DLF sold properties worth ~15,000 crore brand and its unit in the state. year reduction in the import comes at a time when its rival said state industries minister by selling stakes in the airport tion, and amortisation of
during 2022-23 and is set to surpass this number in the current The global major kicked off duty, bringing it down to at Tesla had also requested a 100 T R B Rajaa. and green hydrogen business. ~80,000 crore.
financial year going by sale bookings clocked in the first three
quarters. According to an investors presentation, DLF is aiming to
launch 10 million square feet of area in the next financial year
having revenue potential of ~32,000 crore. PTI
Public Tech Platform for Frictionless Credit, demystified
Skipper bags ~737 crore AJINKYA KAWALE
Mumbai, 25 February access a diverse set of information lending,” RBI had said in a press
order from PowerGrid The Reserve Bank of India (RBI) is
and address the need for credit.
This includes dairy loans,
FINE PRINT
> Frictionless credit offers a
release dated August 14, 2023.
The central bank intends to
Skipper Limited, leading manufacturers for power transmission developing a platform to facilitate collateral-free micro, small, and ‘plug-and-play’ model bring efficiency to the lending
and distribution structures, on Sunday said it has secured an order the flow of digital information to medium enterprise (MSME) loans, for startups, lenders process in terms of the reduction of
worth ~737 crore from Power Grid Corporation of India Limited for financial sector players personal loans, and home costs, quicker disbursement, and
design, supply and construction of a cutting-edge 765 kV to enable ‘frictionless loans through > The platform will scalability.
transmission line for the central PSU. Skipper director Sharan credit’. The pilot of this participating banks. collate data required
Bansal expressed enthusiasm about this latest achievement in the platform, known as a Along with these loans, to disburse loans How does it help borrowers?
power transmission and distribution sector, emphasising the Public Tech Platform the platform focuses on > It is intended to Players suggest using the platform
company’s optimistic outlook on the industry. PTI for Frictionless Credit products such as Kisan reduce costs, could reduce costs, helping lenders
(PTPFC), commenced Credit Card loans up to ~1.6 hasten disbursement, to extend credit at affordable rates.
on August 17 last year. lakh per borrower. and scale up “The RBI is enabling financial
Listing norm breach: IOC, How does the
DECODED inclusion with a PTPFC. With it,
since the entire loan origination
ONGC, GAIL fined again platform work?
The platform will operate on a
What kind of data does
the platform hold? Pradesh, Tamil Nadu, Karnataka, “For digital credit delivery, the data
journey happens through
technology that the regulator is
State-owned oil and gas giants, including Indian Oil Corporation ‘plug-and-play’ model with an PTPFC will collate data required to Uttar Pradesh, and Maharashtra, as required for credit appraisal is pushing for, the cost of operations
(IndianOil), Oil and Natural Gas Corporation (ONGC), and GAIL open architecture, open disburse loans. This data includes well as house or property search available with different entities like can come down drastically for a
(India), have been slapped fines for the third straight quarter for application programming Aadhaar eKYC, Aadhaar e-signing, data. In the case of dairy loans, central and state governments, lender. One can offer competitive
failing to meet listing norm requirements of having the requisite interfaces (APIs), and standards to account aggregation by account milk pouring data from select account aggregators, banks, credit rates since costs go down,” said
number of directors on their board. Stock exchanges have fined oil which all financial sector players aggregators, and permanent dairy co-operatives is available on information companies, digital Aditya Damani, founder and chief
refining and fuel marketing giant IndianOil, explorers ONGC and can connect, according to the account number validation. the platform. identity authorities, etc. However, executive officer, Credit Fair.
Oil India, gas utility GAIL, and refiners Hindustan Petroleum banking regulator. The platform, in its pilot phase, they are in separate systems, PTPFC is being developed by the
Corporation and Mangalore Refinery and Petrochemicals a The model enables lenders and has land records from onboarded What is RBI’s intention to create creating hindrance in frictionless Reserve Bank Innovation Hub, a
cumulative ~32.5 lakh, stock exchange filings showed. PTI startups to plug into the platform to state governments such as Madhya such a platform? and timely delivery of rule-based wholly owned subsidiary of RBI.

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.
MUMBAI | MONDAY, 26 FEBRUARY 2024 COMPANIES 3 <

Road firms bank on new

orders after muted FY24
AMRITHA PILLAY
Mumbai, 25 February
THE ROAD AHEAD (Highway contracts awarded)

O
rder books and order inflow of
multiple road-building com-
panies are shrinking because
tendering for highways has taken a hit.
A mix of diversification, piggyback-
ing on healthy order backlog, and hopes
of a tendering trend reversal next
financial year, is expected to help com-
panies tide over the slump, company
executives said.
Of those who bid for engineering,
procurement, and construction
(EPC) and Hybrid Annuity Model Period Length awarded (in km) Length awarded (in km)
(HAM) of highway projects, multiple FY20 8,912
have either reported a shrinkage in the FY21 10,965
order books or no order inflows for the FY22 12,731
current year. 5,382 2,816
Company executives from HG Infra
FY23 12,375
Engineering in a call with analysts ear- FY24E 7,000-7,500
8MFY23 8MFY24
lier this month noted, “In the nine
months, hardly there were orders of
about ~75 crore,” according to a tran- Data includes NHAI and non-NHAI awards; E: Estimates; 8MFY refers to the period April 1-November 30
Source: ICRA Ratings
script made available of the call.
A senior executive from KNR
Constructions made a similar statement quarters will see the election impact on This, however, is not the case for all
to analysts, “No, we have not received tender awards.” The road sector execu- road EPC companies, where roads con-
any order in FY24.” tive quoted earlier in the story also tinue to dominate more than half of the
GR Infraprojects has also trimmed its expects new tenders under the Build- total outstanding order book.
order inflow guidance for the current Operate-Transfer (BOT) model will bring “Many of the road players had
financial year. opportunities for Road EPC players already started to diversify in the
“Muted awarding by NHAI has com- either as EPC partners or sub-contrac- last few years, but roads continue to
pelled the company to lower its order tors. Some are already contemplating be a large portion of their order
intake guidance for FY24 to ~6,000- this move. Executives from KNR book due to healthy awards
7,000 crore, from ~10,000 crore earlier Constructions informed analysts to tide in the road segment. Meaningful
(~20,000 crore initially),” noted analysts over the slump in NHAI ordering, the reflection of the diversification on order
with Nuvama in a note on the company. company has placed bids book numbers will
The lack of orders is neither causing for micro irrigation proj- take time,” said Kumar
worry over credit-worthiness nor damp- ects and is discussing In a bid to reverse from Icra.
ening enthusiasm. with major BOT players the trend, There are other changes
“The orders seen in the past two like Cube Highways and diversification is on the anvil for mainte-
years, have made up for the lull in the a few others to bid along. again gaining nance guarantee tenures.
last six months. We are hopeful things Typical of infrastruc- momentum with This, both sector experts
will pick up after elections, yes order ture companies, diversi- some companies and company executives
books have shrunk but it is not a con- fication is again gaining agree, will not lead to any
cern,” said a senior executive from the momentum with many cost escalations.
industry. Vinay Kumar, vice president of these companies. For those such as “We do not expect an extension of
and sector head at ICRA Ratings, agreed. Ashoka Buildcon, it is also reflected in the maintenance liability from five to
“At present, the order book to reve- the order book composition. ten years to have any cost impact for
nue ratio is still healthy at around three Power transmission and distribution contractors, as the same will be reim-
times, so we do not expect a revenue hit (T&D)’s share in the company’s total bursed by the authority. It should help
for FY25.” order book has risen steadily over the improve the quality of roads,” the Icra
He added, “The stress will start show- last four quarters. official added.
ing from FY26 if the current trend of a As of December 2023, the segment The road sector executive quoted
lull in orders continues for road EPC was the highest contributor at earlier noted: “The only concern is
projects. A trend reversal in FY25 for 47 per cent, according to the Nuvama seeking a longer bank guarantee to
orders could help, however, the first two Research data. that effect.”
4 ECONOMY & PUBLIC AFFAIRS
>
MUMBAI | MONDAY, 26 FEBRUARY 2024 1

FM-fintech meet today: Compliance, innovation on table

Paytm may be absent from the meeting
RUCHIKA CHITRAVANSHI &
AJINKYA KAWALE
New Delhi/ Mumbai, 25 February
Finance Minister Nirmala
Sitharaman, along with a
deputy governor of the Reserve
Bank of India (RBI), will meet
heads of several top fintech
companies including Amazon
Pay, Zerodha, LendingKart,
Pine Labs, and Cred on
Monday to discuss the ongoing
regulatory issues in the sector.
According to sources,
Paytm is unlikely to be a part
of the meeting, which comes in
the backdrop of RBI’s action
against the company for per-
sistent non-compliance with
Know Your Customer (KYC)
norms. Besides private players,
the meeting would also see par-
ticipation from senior officials
of the State Bank of India and
the National Payments
Corporation of India (NPCI).
The finance minister is
expected to mediate between
the companies and the regula-
tor to strike a balance between
ensuring regulatory compli-
ance and encouraging innova-
tion in the upcoming sector,
sources said.
“The minister is likely to ask
the companies to make sure
their compliances such as KYC
are in order, and at the same
time ask the regulator to ensure
that the compliance burden is
not so high that it discourages
innovation,” said a source.
Paytm did not respond to
queries sent by Business
Standard till press time. Most
of the companies invited to the
meeting preferred not to
comment. Building the digital
public infrastructure (DPI)
has been high on the govern-
ment’s agenda to accelerate
financial inclusion.
The recent G20 partnership
for global financial inclusion
report prepared by the World
Bank highlighted that DPIs
could bring legal and regulato-
ry risks, insolvency risks which
can endanger the ecosystem at
large if some of its critical com-
ponents were to become finan-
cially unsustainable. “Financial
consumer protection risks
could also be heightened
by misuse of DPIs,” the report
had said.
ICAI may look at Paytm
Chairing the 28th Financial
Stability and Development
regulatory issue
Council (FSDC) meeting on Amid the unfolding Paytm Payments Bank Ltd crisis,
February 21, Sitharaman asked Institute of Chartered Accountants of India President
financial sector regulators to Ranjeet Kumar Agarwal on Sunday said its financial
step up measures to check the reporting review board (FRRB) may deliberate on issues
spread of unauthorised lending of the fintech firm in the near future.
through online apps and its The FRRB of the statutory body is currently conducting
harmful effects. a review of the accounts of tech-based education
The FSDC meeting also unicorn Byju’s over alleged governance concerns, and
discussed formulating a the exercise is progressing well, the ICAI president said.
strategy to simplify and digi- Newly elected committees, including FRRB, of
talise the KYC process in the the ICAI are expected to hold meetings from March
financial sector. onwards, he said. PTI

LAST MANN KI BAAT BEFORE LS POLLS N MoSPI CONSUMER EXPENDITURE SURVEY 2022-23 N

PM appeals to youth to
vote in record numbers Rural non-food spend City rents pinch
more than before
over 50% for first time SACHIN P MAMPATTA
Mumbai, 25 February
er share of the consumption budg-
et on conveyance than on rent,
Spending share increased on intoxicants, toilet articles, entertainment according to government data.
The average person living in an Rent in rural India accounts for
SHIVA RAJORA & ASIT RANJAN MISHRA Indian city allocates more of her 0.76 per cent of average consumer
New Delhi, 25 February budget to paying rent than ten, or spending. This is around a tenth
even twenty years ago. of the budget share seen in urban

A
verage spending on non-food The share of rent in the month- India. The number has gone up in
items by rural India surpassed ly per capita consumption expen- the last decade or so. The share of
the 50 per cent mark for the first diture (MPCE) for urban India rent was 0.45 per cent in 2011-12.
On Sunday, in the 110th episode of Mann Ki Baat, Prime time in 2022-23, with a decrease in the rose to 6.56 per cent, according The money spent on con-
Minister Narendra Modi said the broadcast will not be aired proportion of total expenditure now to the latest Household veyance in rural India has seen a
for the next three months in view of the Lok Sabha polls. He allocated to food items, according to Consumption Expenditure Survey sharp rise. It accounted for 7.38 per
asked first-time voters to poll in record numbers in the the latest Household Consumption (HCES) in 2022-23. cent of spending in 2022-23. It was
elections. He also inaugurated All India Institute of Medical Expenditure Survey (HCES) released This was the highest it has been 4.2 per cent in 2011-12.
Sciences at Rajkot, Bathinda, Raebareli, Kalyani, and by the Ministry of Statistics and in similar surveys going back to at Rural India spends a smaller
Mangalagiri. After scuba diving off the Arabian Sea coast at Programme Implementation (MoSPI). least 1999-2000. It was 4.46 per share of its consumption budget
the Panchkui beach in Gujarat, Modi said to pray in the city of The Survey results released after 11 cent at the turn of the millennium. on conveyance than those living
Dwarka, which is immersed in waters, was a “very divine years show as a share of monthly per The government released in cities. But the gap between the
experience”. Inaugurating development projects worth capita expenditure (MPCE), spending data on India’s consumption two has narrowed.
~48,000, Modi asserted that his guarantee begins when hope on food items in rural India decreased patterns on Saturday. The overall consumption
from others fades PHOTO: PTI to 46.38 per cent in 2022-23 from 52.9 The last available expenditure in rural
per cent in 2011-12. numbers are from 2011- India was around half of
The latest data is expected to SHARE OF THE WALLET 12-around a decade The share of
rent in the
the amount seen in
play a pivotal role in reviewing critical % composition of monthly per capita expenditure nFood nNon-food ago. The government cities. The average
IN BRIEF economic indicators such as the junked the exercise it monthly monthly consumption
consumer price index (CPI), the RURAL carried out for 2017-18 per capita expenditure in rural
Jan steel exports at 18-mth gross domestic product (GDP), and
poverty levels. 53.1
57.0
52.9 53.6
citing ‘data quality’
issues.
consumption
expenditure
India was ~3,860.
It was ~6,521 in
59.4
high on rising EU demand In urban India, this proportion
declined further to 39.17 per cent 40.6
46.9
43.0
47.1 46.4 The 2017-18 survey
indicated a worsening
for urban
India rose
urban India. One major
change has been the
The country’s monthly steel exports hit a 18-month high to in 2022-23 from 42.62 per cent in 2011- of consumption trends. to 6.56% fact that food no longer
1.1 million tonnes in January 2024 on increased demand from 12. In contrast, the spending on non- The current data accounts for the major-
the European Union and supportive global prices, SteelMint food items as a percentage of MPCE shows an improve- ity of consumption in
said. Besides, competitive domestic prices of steel contributed to increased to 53.62 per cent in 2022-23 ment. Rural monthly consump- rural India. It was at 47.47 per cent
rise in export, the research firm said in its latest report.The from 47.1 per cent in 2011-12. tion per person was up 40 per cent in 2022-23, compared to 52.9 per
outbound shipment of steel in January 2023 was 0.67 million In urban India, this proportion after adjusting for inflation. It was cent in 2011-12.
tonne , according to SteelMint data. PTI further increased to 60.83 per cent from 1999- 2004- 2009- 2011-12# 2022-23 up 33 per cent in urban areas. Other expenses have shown a
57.38 per cent during the same period. 00* 05** 10*** In addition to rent, city varying trend in urban India.
In rural India, spending on cereals dwellers are also spending big on The share of education has fall-
GST Council may soon clarify dipped to 4.89 per cent of MPCE in URBAN 59.5
55.6 57.4 60.8 travel. This comes under the head en to 5.73 per cent compared to
2022-23 from 10.69 per cent in 2011-12, 51.9 of conveyance in the survey. It 6.9 per cent earlier.
tax exemption to Rera due to the free food grain supplies by
the central government through Garib
48.1
40.5
44.4 42.6 39.2
includes travelling back and forth
from work.
It fell to 3.23 per cent from 3.49
per cent in rural India. But medical
The Goods and Services Tax (GST) Council is likely to soon clarify that Kalyan Anna Yojana. The cost of fuel is considered if expenses have gone up.
the Real Estate Regulatory Authority (Rera) will not be required to Among other items, spending on one owns a vehicle. The share of The total share of medical
pay GST, an official said. According to the official, Rera, which vegetables, pulses, edible oils, sugar, conveyance in the total consumer expenses was 5.91 per cent in
functions as a regulator as well as facilitator for the realty sector, is and salt also declined while spending spending has also gone up. It was urban areas from 5.54 per cent a
covered under Article 243G of the Constitution, dealing with on milk and milk products; egg, fish, 8.59 per cent in 2022-23, compared decade ago. It moved to 6.97 per
powers, authority and responsibilities of panchayats. Rera was set and meat; fresh fruits; beverages, and to 6.52 per cent in 2011-12. The cent from 6.65 per cent in rural
up to ensure transparency in real estate projects. PTI processed food increased. 1999- 2004- 2009- 2011-12# 2022-23 average city dweller spends a larg- India over the same period.
Among non-food items, spending 00* 05** 10***
share increased on paan, tobacco, *NSS (55th round); **NSS (61st round); ***NSS (66th round); #NSS (68th round) Source: NSO

India to add 18 more nuke and intoxicants; toilet articles and

reactors by 2032: NPCIL

The country will add 18 more nuclear power reactors with a
capacity to generate 13,800 MWe of electricity, taking the total
share of atomic power in the energy mix to 22,480 MWe by 2031-
32. This was announced by the Nuclear Power Corporation of India
Limited (NPCIL) after Prime Minister Narendra Modi dedicated
two home-built 700 MW nuclear power reactors in Gujarat.
431 infra projects hit by cost
household consumables; medical,
entertainment, rent, conveyance,
and consumer services except
conveyance and durable goods while
the share of expenditure declined
on items such as fuel and light;
education, clothing and bedding and
footwear, among others.
PTI In urban India, spending on cereals,
pulses, sugar and salt; egg, fish and
meat, and edible oil declined while
expenditure on milk and milk prod-
ucts, dry fruits, beverages, and
talisation), entertainment, clothing,
and bedding; and footwear declined.
methodology of the current
survey, which helps in the better
SPENDING BIG
The data shows, at current prices, capture of consumption data, as the nRent nConveyance (% share in total MPCE)
MPCE in rural areas increased field enumerators now collect data at
4.46
to ~3,773 per month in 2022-23 three different time intervals, as 1999-00
from ~1,430 per person in 2011-12, a opposed to the earlier practice of 5.52
jump of 164 per cent, whereas in the recording everything at once.
urban areas, MPCE rose by 146 per “The characteristic of consumption 5.38
2004-05
cent to ~6,459 from ~2,630 during the in rural areas has also changed due to 6.21
same period. the rapid urbanisation in the country.
Owing to the faster pace of increase Data shows the share of spend on food 5.79
2009-10
in rural consumption, the difference
in average monthly consumption
has come down. This could be a result
of free food grains being made available
5.63

overrun of ~4.8 trillion in Jan processed foods increased.

Among non-food items, the spend-
As many as 431 infrastructure projects, each entailing an ing share on paan, tobacco, and intox-
investment of ~150 crore or above, were hit by cost overrun of icants; toilet articles and other house-
more than ~4.80 trillion in January 2024, an official report stated. hold consumables; medical
According to Ministry of Statistics and Programme Implementation (non-hospitalisation), conveyance,
(MoSPI), which monitors infrastructure projects worth ~150 crore rent, and durable goods increased
and above, out of 1,821 projects, 431 reported cost overrun and 780 while the share of expenditure on fuel
projects were delayed. PTI and light; education, medical (hospi-
expenditure between rural and urban
households has narrowed to 71.2 per
cent in 2022-23 compared with 83.9
per cent in 2011-12.
PC Mohanan, the former acting
chairman, the National Statistical
Commission (NSC), says the faster
rise observed in rural consumption
can be attributed to the improved
at subsidised costs, while the share of
spending on durables like mobiles, 2011-12
6.24
6.52
fridges, tablets, and consumer services
has increased,” he added. 6.56
In November 2019, the government 2022-23
scrapped the 2017-18 survey citing 8.59
data quality issues after leaked results Note: Shows trends in monthly per capita consumption expenditure
had shown a decline in rural consump- for urban India Source: Household Consumption Expenditure Survey 2022-23
tion in real terms.

US sanctions on Russia’s oil-shipping firms may leave India at sea

S DINAKAR
Amritsar, 25 February
Washington is slowly but steadily
cutting the umbilical cord that
links Russian oil to India —
shipping. The US, on Friday,
unleashed the largest sanctions
instance, Georgy Maslov is cargo, fearing reprisals sanction net over the last
scheduled to discharge a 621,000
barrels parcel of Urals at Reliance’s SUPPLY Anatoly Kolodkin
Georgy Maslov 4
6 from Washington.
In December and January,
six months.
In February, Washington
Jamnagar port in early March,
according to Kpler data.
CHAIN Krymsk 6
around 10 vessels, belonging to
Sun Ship and Hennesea Tankers,
imposed sanctions on nearly 20
vessels, owned by Sovcomflot, NS
It is unlikely that Indian Instances of Liteyny Prospect 5 carrying a premium Sokol crude Leader Shipping, and Dubai-based
banks will process payments for cargo supplied Nevskiy Prospect 3 grade had to turn back from India Oil Tankers SPF Mgt.
crude carried on a sanctioned to India since because of the sudden sanctions In January, it slapped sanctions
NS Antarctic 6
Ship name

package, partly directed at
Sovcomflot, Russia’s state-owned
shipping behemoth, and on 14 of
its vessels, which are some of the
biggest carriers of Russian oil to
India regularly.
Since January 2023, the newly-
sanctioned tankers have
transported around 68 cargoes to
India, equivalent to around 6 per
cent of the total Russian crude
imports last year.
That’s approximately 48
million barrels of oil, more than
what Nigeria, a key crude oil
supplier to India before the
Ukraine war, supplied in 2023,
according to calculations based on
data conducted by market
intelligence agency Kpler.
Some of the ships are en route,
carrying crude to India. For
vessel, a state-refining official said,
leaving the fate of the cargo in
uncharted waters.
NS Captain, another
sanctioned vessel, is supposed to
deliver cargoes in March and April
to Vadinar port, where Rosneft-
owned Nayara Energy owns a
refinery. Anatoly Kolodkin is
scheduled to deliver cargo in April
at Sikka port. Washington is
chipping away at the so-called
shadow fleet that transports oil to
China, India, and Turkiye, among
others. The latest missive came on
February 23, when the Office of
Foreign Assets Control, under the
US Treasury Department, accused
Sovcomflot vessels of transporting
crude oil over and above the G-7
mandated price cap of $60 a barrel.
Targeting ships seems to be
Owner of all
ships is
Sovcomflot; date of
sanction for all ships
is Feb 23, 2024
Sources: US OFAC, Kpler
working. Since Washington
escalated sanctions in December,
first targeting Dubai-based Sun
Ship Management, a Sovcomflot
unit, Russian supplies to India
have averaged around 1.5 million
barrels per day.
It compares to over 2 million
b/d in July and 1.7 million b/d in
Jan 2023 imposed by the US in December. on Hennesea Holdings, and 18
NS Bravo 1 Total The timing of such vessels. Aggressive enforcement of
NS Burgas 1 68 enforcement actions, the latest sanctions began in September and
NS Captain 5 one announced to coincide with gained steam in December when
the second anniversary of Sun Ship, which on its website says
NS Columbus 7 Moscow’s invasion of Ukraine, also that it owns 92 tankers, was
NS Consul 7 comes amid the rising attacks on marked. But some of these vessels
NS Creation 7 tankers in the Red Sea by Houthi have appeared under different
rebels carrying crude to India. ownership in the last few months,
NS Lion 5
Two vessels have been attacked documents from Russia and ship
Sakhalin Island 5 in the past month. tracking data showed.
“With the shipping capacity Despite the sanctions against
shortage that Russia is already vessels, Russian crude oil exports
November. India will not accept that it was unfair on the part of the facing thanks to the US cracking to non-FSU countries averaged 4.6
crude shipped on sanctioned US to impose sanctions without down on price-cap busting, million barrels per day (bpd) from
vessels, top Indian officials said. prior notice because there have Moscow can ill-afford to October 2023 to January 2024
The country receives crude been occasions when a tanker reroute its crude via Cape of marginally lower from 4.61 million
from Russia on around 45-50 leaves the port it is not under Good Hope in South Africa,’’ bpd in January-September 2023,
vessels every month, according to sanctions but midway through the said Singapore-based energy before the first sanctions against
Vortexa data. month-long journey to India an expert Vandana Hari. vessels were imposed, UK-based
Indian state-run refining enforcement order materialises, More than 50 oil tankers market intelligence provider
officials told Business Standard forcing Indian refiners to reject the have come under Washington’s Energy Intelligence said.
 JM FINANCIAL ASSET RECONSTRUCTION COMPANY LIMITED
Corporate Identiication No. : U67190MH2007PLC174287
Regd. Oice : 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025 >
MUMBAI | MONDAY, 26 FEBRUARY 2024 5
Authorized Oicer : Prashant Monde, Email : queries.arc@jml.com,
Phone : 022 6224 1661, Website : www.jminancialarc.com
Notice for sale of secured immovable properties as mentioned in the Schedule hereunder (“Said Properties”) of ASHOKKUMAR
BANSHU SINGH under Rule 8(6), Rule 9(1) and other applicable rules of the Security Interest (Enforcement) Rules, 2002
(“Enforcement Rules”) possession of which has been taken over under Section 13(4) of the Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) read with the aforesaid Enforcement Rules.
1. WHEREAS the Authorised Oicer of Poonawalla Fincorp Limited under the SARFAESI Act and in exercise of powers conferred under
Section 13 (12) of the aforementioned act read with Rule 3 of the Enforcement Rules, issued demand notices dated 18.05.2022 and
19.10.2022 calling upon ASHOKKUMAR BANSHU SINGH (“Borrower(s)”), AMIT ASHOK SINGH, A S CONSTRUCTION, Shashikal
A Singh (“Co-borrower(s)”) to repay the amounts as mentioned under the aforesaid notices, being Rs. 45,11,155/- (Rupees
Forty Five Lacs Eleven Thousand One Hundred Fifty Five only) as on 18.05.2022 and Rs. 26,12,397/- (Rupees Twenty Six Lacs
Twelve Thousand Three Hundred Ninety Seven only) as on 19.10.2022 respectively together with interest at contractual rate and
expenses, costs, charges etc., due thereon till the date of payment within 60 (sixty) days from the date of receipt of the aforesaid
demand notices.
2. AND WHEREAS, the aforementioned Borrower(s) and Co-borrower(s) having failed to repay the outstanding dues or any part
thereof as mentioned in the aforesaid demand notices, the Authorised Oicer of Poonawalla Fincorp Limited took over the
physical possession of the Said Property under Section 13(4) of the SARFAESI Act read with Rule 8 and other applicable rules of the
Enforcement Rules on 28.03.2023.
3. AND WHEREAS, subsequently JM Financial Asset Reconstruction Company Limited, acting in its capacity as trustee of Retail
June 2022 - Trust (“JMFARC”) acquired the inancial assets pertaining to Loan Account No. HM/0458/H/15/000009 and
HL/0458/H/17/000002 of the Borrower along with all the rights, title, interest and underlying security interest created therefor from
Poonawalla Fincorp Limited vide assignment agreement dated 30.06.2023 and 28.02.2023 respectively.
4. In exercise of the powers conferred under Section 13(4) of the SARFAESI Act, read with Rule 8(5), Rule 8(6) and other applicable rules
of the Enforcement Rules, notice is hereby given to you that the Said Properties shall be sold by the Authorised Oicer of JMFARC
on “AS IS WHERE IS”, “AS IS WHAT IS” AND “WHATEVER THERE IS” basis by way of public auction (through e-auction) after the
expiry of 15 (Fifteen) days, i.e., on 24.04.2024 11 AM to 12 PM, for a sale consideration which shall not be less than the reserve price
as mentioned in the table below:
Please ind below the details of the aforesaid sale to be conducted by way of private treaty:
Amount of secured debt HM/0458/H/15/000009 - Rs. 45,11,155/- (Rupees Forty Five Lacs Eleven Thousand One Hundred Fifty
Five only) payable as on 18.05.2022 along with interest @ 14.30% till the realization.
HL/0458/H/17/000002 - Rs. 26,12,397/- (Rupees Twenty Six Lacs Twelve Thousand Three Hundred
Ninety Seven only) as on 19.10.2022 along with interest @ 13.30% till the realization.
Description of the Said As per the Schedule mentioned below
Properties
Reserve price (In Rs.) Rs. 41,87,525/- (Rupees Forty One lakhs Eighty Seven Thousand Five Hundred and Twenty Five only)
Earnest Money Deposit Rs. 4,18,753/- (Rupees Four Lakhs Eighteen Thousand Seven Hundred Fifty Three only)
(In Rs.)
Venue https://www.bankauctions.in

Loan Account Number SCHEDULE - Description of the Said Property

ALL THAT PIECE AND PARCEL OF MORTGAGED PROPERTY: Residential - Flat No. 02, 1st Floor, “A”
HM/0458/H/15/000009 & Wing, New Shree Ganesh Darshan Co. op. Hsg. Soc. Ltd, Vill - Pisawali, Tal - Kalyan, Dist - Thane,
HL/0458/H/17/000002 the plot of land bearing Sl. No. 28, H. No.16. within the limits of the Kalyan Dombivilli Municipal
Corporation Kalyan & also within the Sub-Registrar Dist. Thane, Pin - 421306
Attention is drawn of the Borrower(s) and Co-borrower(s) to sub-section (8) of Section 13 of the SARFAESI Act for the time
available to redeem the above-mentioned Said Properties.
Sd/-
Authorised Oicer
Place : Mumbai For JM Financial Asset Reconstruction Company Limited,
Date : 26.02.2024 (Acting in its capacity as trustee of Retail June 2022 – Trust)

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6 ECONOMY & PUBLIC AFFAIRS
>
MUMBAI | MONDAY, 26 FEBRUARY 2024 1

Defence budget masks capital

This payment has a skewed frame-
work, with the army paying over 80
per cent of its budget on personnel
Weekend
costs (salaries + pensions), while the
navy and air force pay about 10 per
update
allocations to each service
cent each.
Military planners say that they
inform the Ministry of Finance (MoF)
about their requirement of funds for
Digital nagriks not to be
the Budget, but those funds are sel- experimented with: MoS IT
AJAI SHUKLA
25 February PERSONNEL COST dom allocated.
The 37th Report of the 17th Lok Union Minister Rajeev Chandrasekhar on Saturday told Google
Army Navy Air Force (in %) Sabha’s Standing Committee on that explanations about unreliability of AI models

T
he Ministry of Defence (MoD) 11 11 11 11 12 Defence, which was presented in both do not absolve or exempt platforms from laws,
this year presented the capital 7 8 9 9 9 Houses of Parliament on March 21, and warned that India’s digital nagriks
allocations for the defence states that in FY19, the MoF allocated (citizens) “are not to be experimented on”
budget in a new format, combining just 52 per cent of the services’ capex with unreliable platforms and
the capex budget for all three servic- projection. Subsequently, this alloca- algorithms.The minister's comments came
es into a single allocation, rather than 82 81 80 80 79 tion rose year by year to 59 per cent, after Google’s AI tool Gemini’s response to
allocating budgets for all the three
FY21 FY22 FY23 FY24 (RE) FY25 (BE) 63 per cent, 61 per cent and 68 per a question on PM Narendra Modi. PTI
services separately. As a result, cent. This was until the 2023-24
Demand No. 21, pertaining to the 2.6 2.7 2.9 3.2 3.4 Budget saw an allocation of 100 per
“Capital Outlay on Defence Services”
does not give out separate figures for ILLUSTRATION: AJAY MOHANTY
Services’ personnel cost (~ trn) cent of the services’ projections.
A Business Standard analysis of
ED summons Hiranandani
each service — the army, navy and
air force. CAPITAL COST (~ cr)
Note: Data rounded off to the closest whole number
defence capital allocations during the
preceding decade reveals that capex
Group promoters today
The only way to estimate the cap- has risen by barely 5 per cent in real The Enforcement Directorate on Monday summoned
ital allocation for each service is to cal- Financial Capital Army Navy Air Force terms each year, in the last decade. Niranjan Hiranandani and his son Darshan Hiranandani,
culate the allocations to each service Year budget Allocation % Allocation % Allocation % This is after accounting for the promoters of prominent Mumbai-based real estate
over the preceding decade. Then, by FY15 68,311 13,246 19.5 22,269 32.5 32,796 48.0 inflation and foreign exchange rate developer Hiranandani Group, for questioning in a
assuming that a similar percentage of FY16 71,675 20,602 28.5 19,875 28.0 31,198 43.5 variation (FERV). foreign exchange violation case, official sources said on
capex funding would be distributed This 5 per cent rise in the military’s Sunday.The Hiranandanis have been asked to depose at
among the three services this year, it FY17 83,673 30,821 37.0 22,466 26.5 30,386 36.5 modernisation budget trails the the central agency’s office in Mumbai but they may
can be broadly estimated what each FY18 82,184 27,148 33.0 20,119 24.5 34,917 41.0 growth in gross domestic product choose to submit their primary responses through an
service would be allocated in the com- FY19 89,812 29,561 33.0 23,770 26.5 36,481 40.5 (GDP), which has risen at 6-8 per cent authorised representative, they said. PTI
ing financial year. FY20 104,135 29,001 28.0 30,030 29.0 45,104 43.0 annually for that period.
By such a calculation (see chart 1), Twice during this period, in 2012-
FY21 131,697 29,389 22.0 44,170 33.5 58,138 44.5
it can be seen that over the preceding
decade, the army has been allocated FY22 121,987 25,131 20.5 45,029 37.0 51,827 42.5
13 and 2015-16, the adjusted capital
budget was lower than the previous
Assam Cabinet gives nod to
an average of 28 per cent of the
defence capital budget, the allocation
FY23
FY24 (RE)
135,288
152,575
41,125
39,911
30.5
26.0
49,391
54,552
36.5
36.0
44,772
58,112
33.0
38.0
year’s allocations.
There were large hikes of 23.38 per
repeal Muslim Marriage Act
to the navy has been 31 per cent on FY25 (BE) 172,000 48,160* 28.0 53,320** 31.0 70,520# 41.0 cent (in 2009-10) and 18.98 per cent The Assam Cabinet has given its nod to repeal the Assam
average and the air force has been get- (in 2010-11) during the first two years Muslim Marriages and Divorces Registration Act, 1935 in a
ting 41 per cent. Note: RE: Revised Estimates, BE: Budget Estimates; *calculation based on 28 per cent of defence capital allocation of ~1.72 trillion, which is the average of the second United Progressive bid to end child marriage, Chief Minister Himanta Biswa
Applying this proportion to the percentage of capital allocation to the Army for the last 10 years; **calculation based on 31 per cent of defence capital allocation to Navy for the last 10 years; Alliance (UPA-2) government. Sarma said.”This Act contained provisions allowing
#calculation based on 41 per cent of defence capital allocation to IAF for the last 10 years Source: Budget documents
coming year’s capex allocation of ~1.72 Eating into the real value of the marriage registration even if the bride and groom had not
trillion, it is seen that the share of the defence capital allocations are expen- reached the legal ages of 18 and 21 respectively, as
army (28 per cent) Another important tribution of funds in the interim Union MoD — such as the Coast Guard and ditures such as goods and service tax required by law. This move marks another significant step
amounts to ~48,160 set of figures that are Budget presented in Parliament on the Border Roads Organisation. (GST), customs duties and rising per- towards prohibiting child marriages in Assam,” the chief
crore, that of the navy (31 ignored in the Union February 1. That left ~1.72 trillion, or 27.67 per sonnel costs. In stores (tents, cloth- minister posted on X. PTI
per cent) comes to Budget are the capital From the ~6.21 trillion allocated to cent of the total defence budget — ing, ammunition) GST is 18 per cent.
~53,320 crore, while the requirements that are the Ministry of Defence (MoD) — a under the capital expenditure (capex) On vehicles, it is 28 per cent. But no
41 per cent share of the
air force comes to
projected by each of the
three services.
higher allocation than any other mini-
stry — more than half will be paid
head, to cater to modernisation of the
country’s arsenal. Modern militaries
allocation was increased to cater to
these expenditures.
New criminal justice laws to
~70,520 crore. It requires
to be noted that the cal-
Consequently,
remains unknown
it towards personnel costs. This
included 30.68 per cent that was allo-
spend up to 50-60 per cent of their
total defence budget on capex so that
During the UPA government
(2004-2014), two divisions of defensive
come into effect from July 1
culated shares of the whether the financial cated towards salaries and allowances they go into combat with superior troops were raised, along with a “strike The newly enacted laws — Bharatiya Nyaya
three services actually DECODING allocations substantially for serving soldiers, sailors and weaponry and equipment. corps” for the northern borders. The Sanhita, Bharatiya Nagarik Suraksha
vary substantially. The THE DEFENCE meet the projected airmen. Another 22.72 per cent was However, India’s army maintains current Bharatiya Janata Party (BJP) Sanhita, and Bharatiya Sakshya Act — to
overhaul the criminal justice system in the
army’s share has varied
over the last decade BUDGET requirements of the
army, navy and air force
earmarked for defence pensions.
From what remained, 14.82 per
about 1.25 million ground soldiers in
the personnel-heavy structure that
government tried to slow this expan-
sion but a full division worth of man- country will come into effect from July
between 19.5 and 37 per
cent; the navy’s between
PART II or not. cent was allocated for revenue expen-
diture: the cost of keeping the military
sucks up more than half the defence
allocations into paying salaries and
power had already been raised.
Similarly, the Chinese ingress into
1.However, the provision related to cases of
hit and run by vehicle drivers will not be implemented
24.5 and 37 per cent, while the air force Broad defence allocations running and operationally prepared. pension to a large number of troops Eastern Ladakh in the spring of 2020 immediately. The three laws got Parliament’s approval on
has been allocated between 33 and 48 The government’s priorities in defence About 4.11 per cent was spent on civil posted on our Himalayan borders in created pressure on the military for a December 21 last year. PTI
per cent. readiness became evident from its dis- organisations that work under the the north. counter-deployment.

INLD Haryana president FPIs infuse WTO MC13 may not achieve much measures that will further distort
global trade persist. Similarly, not

shot dead in Jhajjar ~18.5 crore much may happen on the proposals to
not impose controls on exports of food

Unidentified assailants shot dead the Indian National Lok Dal

(INLD)'s Haryana unit president Nafe Singh Rathee in Jhajjar
in Feb so far
district on Sunday, according to a senior party leader. Rathee, a Foreign portfolio investors
former member of the Legislative Assembly, was travelling in an (FPIs) continued their bullish
SUV when the assailants, who were in a car, attacked him in stance on the country’s debt
Jhajjar's Bahadurgarh town. INLD leader Abhay Chautala markets with a net infusion of
accused the government of failing to provide Rathee with over ~18,500 crore so far this
security despite there being threat to his life, and demanded the month, driven by upcoming
resignation of the chief minister and the home minister. Police inclusion of Indian
said the investigation in the matter was underway. PTI government bonds in the JP
Morgan Index. This came
following a net investment of
Starting today, the trade ministers of
164 member countries of the World
Trade Organization (WTO) will be
meeting for four days at Abu Dhabi for
the 13th Ministerial Conference (MC13)
to review the progress made since their
last meeting at Geneva in June 2022
and try to agree on the way forward.
The briefing notes prepared by the
WTO secretariat detailing the stand
taken by various countries on the key
issues to be discussed at MC13 show
that the views of the member countries
member to stall decision making.
Meanwhile, unilateral imposition
of import and export restrictions,
neglect of obligations under the rules,
dysfunction of the dispute settlement
mechanism, industrial policies giving
subsidies for
investment and
production, emergence
of regional trading
blocs and proliferation
of preferential and free
trade agreements etc.
and predictability.
Given the widespread apathy,
MC13 may not achieve much.
However, it is reasonable to expect
that the WTO members will continue
with special and differential
treatment for poor
countries, moratorium
on taxation of
international e-
commerce
transactions, freeze on
disputes regarding
and medicines in case of severe
draughts or pandemic emergencies.
All global leaders understand the
benefits of free trade but many of
them are not willing to annoy the
nationalistic elements in their
constituencies and vested interests
who demand protectionism, under
the garb of self reliance, national
security, creation of jobs etc. India has
generally played the role of the
champion of poorer countries by
blaming the rich countries for rigging

Currency-in-circulation over ~19,836 crore in January,

making it the highest monthly
inflow in more than six years.
growth slows to 3.7% This was the highest inflow
since June 2017, when they
The growth in currency in circulation decelerated to 3.7 per cent infused ~25,685 crore.
for the week ended February 9 from 8.2 per cent a year ago, “With introduction of
reflecting the impact of the decision of the Reserve Bank of India India in global bond indices
(RBI) to withdraw ~2000 bank notes. this year, Indian debt inflows
Currency-in-circulation (CiC) refers to notes and coins in should get steady flows going
circulation, while currency with the public comprises notes and ahead. Further front-loading
coins in circulation minus cash with banks. The growth of before actual inclusion in
Reserve Money (RM), according to the RBI data, decelerated to June this year is also
5.8 per cent as on February 9, 2024 from 11.2 per cent a year ago expected,” Kislay Upadhyay,
(8.8 per cent adjusted for the first-round impact of change in smallcase Manager &
Cash Reserve Ratio). PTI Founder Fidelfolio, said. PTI
are quite divergent on every issue. So,
expectations of substantive outcomes
on any issue from MC13 are very low.
have introduced fresh
distortions that
inevitably result in
domestic support for
agriculture and
suspension of
the system and weakening the
multilateral institutions to further
their own interests. It is difficult to
The global trading rules agreed at
the conclusion of the Uruguay round
inefficiencies and sub-
optimal outcomes.
complaints when
another member’s
recall any positive proposals or
intellectual persuasion for free trade
of negotiations at Marrakesh in April Indeed, interest of the EXIM MATTERS action deprives a from India.
1994 that led to the establishment of WTO members in
T N C RAJAGOPALAN member country of The WTO is a member driven
the WTO have largely remained reforming the trading expected benefits organisation. If the member countries
unchanged although the rules is waning because under the intellectual do not want to ensure a well
technological prowess, geopolitical there is no point in making rules that property rights agreement. Some functioning multilateral institution,
power equations and economic can be violated at will and cannot be progress may be made on curbing the WTO cannot do much. It would be
strengths of the WTO member enforced. Even the private sector subsides for fishing. It might, no surprise if many countries pursue
countries have changed looks quite uninterested in the role of however, be difficult to get a pause on plurilateral agreements in some
significantly since then. Major WTO, even though it is businesses carbon border adjustment service sectors.
hindrances to any reform of the that have the most to gain from mechanism of the European Union,
WTO rules include the right of any uniform trading rules, transparency even though fears of retaliatory Email: tncrajagopalan@gmail.com

nations at the WTO, including from member nations in case security, and our sustainable tion. One shareholder with sent of the founder and the
> FROM PAGE 1 African ones, on this issue. the limit is breached. agricultural practices,” it stated. approximately 15,000 votes shareholders right after the > BS SUDOKU # 4214
However, developed countries, According to Delhi-based S Chandrasekaran, a trade had abstained. audit of the FY23 results, which

Permanent including the US as well as the

19-member Cairns Group, view
think tank Global Trade
Research Initiative (GTRI),
policy analyst, said India faced
production constraints in
According to sources in the
company, its shareholders
are expected to come by the
close of the quarter (March

solution to this as a subsidy for farmers

food security
may be some
time away
The ministerial conference, the
highest decision-making body
of the WTO, can take a call on
all matters within the ambit of
multilateral trade rules based
on a consensus.
Indian officials had earlier
said one of the top agendas for
New Delhi was to fast-track its
long-pending demand for a
permanent solution to the issue
of public stockholding, agreed
upon over a decade ago. They
had also said India would not
engage in other agriculture dis-
cussions until a permanent
solution for public stockhold-
ing was reached.
Through its public stock-
holding programme, India pro-
cures food grains, such as
wheat and rice, at a predeter-
mined price and then subsi-
dises it through the public dis-
tribution system -- the policy
tool used by the government to
meet food security.
India has found support
from a group of developing
and as a distortion of trade.
A permanent solution is
crucial since some developed
countries have been question-
ing India’s minimum support
price (MSP) programme for
food grains, particularly rice,
since the subsidy has breached
the suggested limit under the
WTO trade norms thrice.
Under trade norms, a WTO
member’s food subsidy bill
should not breach the limit of
10 per cent of the value of pro-
duction, based on the reference
price of 1986-88. Subsidies over
and above the prescribed ceil-
ing are seen as trade-distorting.
Apprehending that full
implementation of the food
security programme may result
in a breach of the WTO cap,
India has been seeking amend-
ments to the calculation for-
mula. As an interim measure,
WTO members at the 2013 min-
isterial meeting had agreed to
put in place a mechanism pop-
ularly called the “peace clause”
and committed to negotiating
an agreement on a permanent
solution at the 11th ministerial
meeting at Buenos Aires.
India has invoked the peace
clause under WTO norms to
protect its food procurement
programme against any action
reaching an agreement on pub-
lic stockholding is difficult
because developed countries
like the US and Cairns Group
argue India’s programme could
distort trade. “The US suggests
a gradual approach, dealing
with public stockholding along-
side other issues, and increas-
ing transparency in such pro-
grammes. The MC13 might not
resolve the issue, showing the
conflict between developing
countries wanting to protect
food security and developed
countries pushing for free
trade,” the report said.
In a letter, the Indian
Coordination Committee of
Farmers Movements urged
Commerce and Industry
Minister Piyush Goyal to resist
any pressure to weaken the
public stockholding mecha-
nism and fight for a permanent
solution that considers the
needs of developing countries
like India to ensure food secu-
rity for millions of its needy
people. “We are deeply con-
cerned about the potential out-
comes at MC13 that could
impact our livelihoods and the
future of Indian agriculture. We
urge you to safeguard our inter-
ests and ensure that the deci-
sions made in Abu Dhabi pro-
tect our farmers, our food
grains due to climate change.
“MSPs and public stockholding
are most necessary to keep
farmers producing the grains
and preserve food security. The
clear definition of trade-distort-
ing subsidies is imperative to
take the subject to a logical con-
clusion," Chandrasekaran said.
Divisions on
EGM results
compound
Byju’s woes
However, according to sources
close to private-equity share-
holders, 47 investors were pres-
ent in the meeting. Those,
according to them, represent
60 per cent holding in the com-
pany and 46 of them voted
unanimously in favour of the
resolutions—and they repre-
sent the largest institutional
investors.
Sources say based on the
EGM, shareholders holding 2.8
million votes and present in the
meeting voted unanimously for
the resolution. Of these some
were invalidated by the scruti-
neer and 2.2 million votes were
counted in favour of the resolu-
owned 4.78 million shares on
fully diluted equity. But inves-
tors say the total shares, accord-
ing to the latest information
available with them, are 4.5 mil-
lion. The difference is based on
calculation. While the investors
have taken the votes in favour
of the resolution as represent-
ing 2.8 million shares, those
favouring the promoters say
invalid votes cannot be
included. The two also have dif-
ferent figures for shares.
The seven resolutions
include advising the board to
consider changes in it — having
a board structure with nine
members including a founder,
two executives within the
group, three shareholders, and
three independent directors. It
also seeks appointing a forensic
expert to look into alleged
breaches and removal of CEO
Raveendran; his wife, Divya
Gokulnath; and brother Riju
Raveendran, and appointing an
interim CEO, among others.
However, in an olive
branch, the CEO wrote to his
shareholders on February 21,
just after the $200 million
rights issue received a commit-
ment, the firm was committed
to restructuring the board by
appointing two independent
directors by the mutual con-
2024 instead of the earlier com-
mitment to file it by December
end 2023).
He pointed out in a commu-
nication to the shareholders he
believed that this would be in
the best interests of the com-
pany and would allow greater
engagement with shareholders.
Byju’s or its founder did not
respond to queries. The inves-
tor group, which included
Prosus and others, was not
ready to talk on the issue.
In November last year, the
Byju’s advisory board, which
had former Infosys executive T
Mohandas Pai and former State
Bank of India chairman
Rajneesh Kumar as members,
mooted a proposal so that the
promoters came to an under-
standing with the investors.
SOLUTION TO #4213
That included appointing two
independent directors and hir- Very easy:
ing a professional group pres- «
ident who, say sources, was
Solution tomorrow
identified. The plan was
endorsed by the investors, who HOW TO PLAY
were willing to put in more
funds in the company. Fill in the grid so that
However, the two sides every row, every col-
could not come to an agree- umn and every 3x3
ment because investors said box contains
they would sink more funds in the digits 1 to 9
the company only after pro-
gress on management change
and governance happened.
 MUMBAI | MONDAY, 26 FEBRUARY 2024 POLITICS & PUBLIC AFFAIRS 7
“THE UPCOMING LOK SABHA POLLS IS FOR “IS IT POSSIBLE TO GIVE TICKETS TO MOST “I STRONGLY CONDEMN THE BARBARIC ACT OF VIOLENCE
MAKING BHARAT A SUPERPOWER AND THE OF THE LOK SABHA MPs, ESPECIALLY COMMITTED BY THE HARYANA POLICE ON OUR YOUNG
WORLD’S THIRD-LARGEST ECONOMY UNDER WHEN THEY ARE SEEN WANDERING HERE FARMER... I URGE HARYANA CM TO TAKE STRICT ACTION
MODI’S LEADERSHIP” AND THERE IN THEIR OWN INTERESTS?” AGAINST THE POLICEMEN”
AMIT SHAH, Union Home Minister MAYAWATI, BSP chief AMARINDER SINGH, BJP leader & former Punjab CM
> .

Arithmetic progression Looking to consolidate Muslim votes, SP and Congress have joined
hands for the parliamentary polls. RADHIKA RAMASESHAN explains
what it means for their LS prospects

It may not be a cakewalk

for Rahul, Cong in Kerala
In the run-up to Lok Sabha polls, LDF appears to be better placed
than in 2019 and BJP is leaving no stone unturned to emerge as a
challenger in the state, writes SHINE JACOB
T
he Samajwadi Party (SP) has faced a series Samajwadi Party chief Akhilesh Yadav (right) joins Congress leader Rahul Gandhi’s Bharat Jodo
of electoral defeats in Uttar Pradesh — Nyay Yatra in Agra on Sunday PHOTO: X/@YADAVAKHILESH
starting with the 2012 Assembly polls until In the current political landscape, votes. However, the party is grap-
2022 state elections. Though it increased its seat
three nominees get through. In the normal course, veteran and member of the UP Legislative Council. the notion of a wave of support for THE PAST pling with internal strife ahead of
count from 47 to 110 in the most recent poll, thethe SP would have sailed through, as would the “Nobody wants the minority votes to be divided. Congress leader Rahul Gandhi may the elections, with a public spat
party has lost two allies -- the Suheldev Bharatiya
BJP. But sensing friction within the SP, the BJP That’s why INDIA stands as a strong secular force.” seem far-fetched to many. Yet, in EQUATIONS between Congress state President
Samaj Party (SBSP) and the Rashtriya Lok Dal nominated an eighth candidate, Sanjay Seth, who Asked if a Muslim consolidation might not the 2019 Lok Sabha elections, when K Sudhakaran and the Leader of
(RLD) — both of which have since joined hands could disrupt the SP. Seth, a real estate tycoon conversely trigger a Hindu polarisation, Anurag the Congress was nearly obliterated n In 2019, Congress-led the Opposition in the Assembly V
with the Bharatiya Janata Party (BJP). from Lucknow, was close to Yadav and his father, Bhadauria, SP spokesperson, replied: “We are from the political map with a mere UDF won 19 of Kerala’s 20 LS D Satheesan. Sudhakaran was
The SBSP and the RLD, in themselves, are not Mulayam Singh Yadav, and was appointed party fighting on a host of issues on which the BJP is 52 seats (and the United Progressive seats caught on the microphone using
exactly powerful entities, nonetheless, they treasurer by Yadav. SP sources have not dismissed silent. Price hikes, women’s welfare, farmers’ prob- Alliance with 91), it was a surge of profanity while questioning why
brought value to the SP’s table by adding their the possibility of cross-voting by its 108 MLAs. lems, unemployment, and restlessness among support for Gandhi in the South n Of these, Congress won Satheesan was at a party event in
caste-derived votes in eastern and western UP. The Congress brings just two legislators whose youths. Look at the lakhs of youths who applied that helped keep the party relevant. 15, or 29%, of its Alappuzha.
The SP's nomination of three candidates for votes won’t help the SP tide over a possible crisis. for the police constable recruitment exam and The Congress and its allies secured nationwide tally of 52 The BJP is not without its share
the Rajya Sabha biennial elections on February That’s why the SP has reached out to the Jansatta were frustrated because the exam was cancelled 19 of their seats from Kerala, of problems. In an embarrassment,
n Rahul Gandhi won from
27 has caused internal strife. Pallavi Patel of Apna
Dal (Loktantrik), headed by Raghuraj Pratap Singh after a paper leak.” buoyed by the fact that, for the first a promotional song released by the
Dal (Kamerawadi), an ally leader, publicly accused
(Raja Bhaiya), an Independent legislator with no On whether BSP chief Mayawati could torpedo time, a national leader and member Wayanad, securing almost Kerala BJP urged people to defeat
SP chief Akhilesh Yadav of reneging on his com- determined political inclination. INDIA’s calculation about securing the Muslim of the Nehru-Gandhi family was 65% of votes the “government at the Centre that
mitment to the “PDA (pichada, dalit, Looking at the upcoming Lok Sabha votes by fielding a record number of contesting from Kerala. Only once n Congress' allies won 4 is known for corruption”. Adding
alpasankhyak)” cause by choosing two nominees polls, which will likely see a three-way The Congress Muslims, BSP’s Amroha MP Danish Ali before in Kerala’s history has the seats: IUML 2, RSP and to the state leadership’s woes, a
— actor Jaya Bachchan and former bureaucrat contest between the BJP/NDA, INDIA and SP had a — suspended for protesting the expul- Congress and its allies fared better controversy erupted over the par-
Kerala Congress (M) 1 each
Alok Ranjan — who are not linked either to back- bloc, and the Bahujan Samaj Party partnership in sion of Trinamool Congress Party MP -- during the post-Emergency elec- ty’s “upper caste mindset” when a
ward castes or Dalits or minorities. The third, (BSP), the outcome remains uncertain. the 2017 Mahua Moitra, from the Lok Sabha — tions in 1977 when they swept all n CPI (M) won only the poster announced that Kerala BJP
Ramji Lal Suman, an ex-Dalit MP of Hathras, was The Congress and SP had a partnership Assembly polls maintained: “Even BSP votes are get- 20 seats. On both occasions, in 2019 Alappuzha seat President K Surendran would have
the exception. Pallavi queered the pitch for the once before, in the 2017 state polls that that ended with ting transferred to INDIA because its and 1977, the Congress suffered lunch with “SC and ST leaders” on
n BJP’s candidates secured
ended with a spectacular sweep for the a spectacular
SP after declaring that she would vote against the voters feel cheated.” Ali is expected to losses in large parts of the country. February 20. On the other side, the
SP’s “deceit”. BJP after nearly 15 years. Sudhir Panwar, sweep for the BJP join and contest on a Congress ticket Will the Sahyadri ranges pro- more than 20% votes in CPM is dealing with corruption
Saleem Shervani, the SP's national general sec-
a former UP Planning Commission in the Lok Sabha polls. vide a bulwark for the party and its five constituencies allegations against the chief min-
retary and former Badaun MP, resigned from his member who is close to the SP’s leadership, said: But not everyone in the Congress sounded as allies once again? Political pundits n These were: ister’s daughter, Veena Vijayan,
post, alleging that Yadav had done “nothing” for “Things were different then. The SP was internally buoyant. The devil lies in the detail of the 17 seats unanimously suggest that the state Pathanamthitta (28.95%), who continues to face scrutiny
Muslims. fractured, it was up against anti-incumbency, and allotted to the Congress by Yadav. The Congress is not experiencing a discernible from central agencies. Asked about
Attingal (24.66%),
The SP’s alliance with the Congress for the Lok
the Congress was not in a combative mood. We got Rae Bareli and Amethi, for long considered as Gandhi wave this time around. the electoral outcome, Chief
Sabha polls, announced last week after months are now looking at a bipolar election, which is the the Gandhis’ pocket borough until Rahul Gandhi Unlike the previous election, the Thiruvananthapuram Minister Pinarayi Vijayan
of haggling, has been seen as a salvo of sorts at its
only way to defeat the BJP. So, this alliance is nec- lost Amethi in 2019 to the BJP’s Smriti Irani and Communist Party of India (31.26%), Palakkad expressed confidence in securing
internal critics. Patel, who previously indicatedessary.” Sonia Gandhi’s victory margin declined in Rae (Marxist)-led Left Democratic Front (21.24%), and Thrissur victory in all 20 parliamentary
her desire to join the Congress, stated that the Asked why he disregarded the BSP, Panwar Bareli. Sonia Gandhi has since forfeited her seat, (LDF) is on solid ground, while the (28.19%) seats in the state, citing the good
alliance strengthened the Indian National said: “Its relations with the BJP stand exposed. opting for a berth in the Upper House, while it is Bharatiya Janata Party (BJP) is governance practices introduced
Developmental Inclusive Alliance (INDIA) bloc. The chunk of voters wanting to defeat the BJP unclear if Rahul Gandhi will return to Amethi or expected to pose a strong challenge by his administration.
The alliance awaits its first test in the Rajya
will not look at the BSP.” his sibling Priyanka Gandhi Vadra will step into in two seats in Kerala – Thrissur Meanwhile, the BJP is pulling This time, it may not be a cake-
Sabha contest, where the SP has to ensure that its The speculation that the collaboration was her mother’s shoes in Rae Bareli. “If the Gandhis and Thiruvananthapuram. out all the stops to secure victories walk for Gandhi either, as CPI sen-
pushed for by Muslim leaders and opinion moul- desert UP, it will send the most negative message The CPM is already making in Thrissur and ior leader Annie Raja could be the

ELECTORAL ders was confirmed by Rajendra Chaudhary, SP down the line to the workers,” admitted a source.
In the past five years, UP’s Opposition
strides on the battlefield, having
finalised its candidates’ list, which
Thiruvananthapuram.
“Thiruvananthapuram has always
challenger to Gandhi in the
Wayanad constituency. The
STANDING Party performances in past three elections in UP
remained passive and defensive against the BJP,
a trend that does not augur well for the impending
includes political heavyweights like
former health minister K K Shailaja,
been a BJP stronghold, while in
Thrissur, the party is fielding
National Democratic Alliance, too,
is expected to field a strong candi-
battle. former finance minister Thomas Suresh Gopi, a film superstar date this time. In
2017 and 2022 Assembly polls (Total seats: 403) Isaac, and state Cabinet minister K turned politician. Hence, the glam- Thiruvananthapuram, too, where
2019 Lok Sabha polls Radhakrishnan. The party will run our factor is certainly in play. These the Congress’ Shashi Tharoor is the
Party 2017 (seats won/ Vote share 2022 Vote share
(Total seats: 80) in 15 seats in the state, while its two seats hold strong potential for sitting candidate, there is specula-
seats contested) allies, the Communist Party of the party, rather than seats like tion that the BJP could field Union
BJP 312/384 39.67% 255/376 41.29% Party Seats won/ Vote share India (CPI), will contest four seats Kasargod," observed A Minister Rajeev Chandrasekhar or
contested and the Kerala Congress (M) one Jayashankar, a senior political ana- actor Shobhana or another Union
BJP’s allies Apna Dal (S) 9/11 0.98% + Apna Dal (S) 12/17 1.62% + seat. This comes at a time when all lyst. In the past two months, Prime minister. “Here the advantage for
SBSP 4/8 0.7% Nishad 6/10 0.91% BJP 62/78 49.98% the incumbent members of the Minister Narendra Modi has visited the Congress is that anybody can
SP 47/311 21.82% 111/347 32.06% BJP’s allies Apna Dal 2/2 1.21% Congress and the UDF are expected Thrissur twice, underscoring the win from Wayanad, it is their
to get another chance. Last week, significance of the constituency. fortress. On the other hand, in
SP’s allies INC 7/114 6.25% RLD 8/33 RLD 2.85% SP 5/37 18.11%
the LDF even managed to wrest a Still, the Congress and its allies, Thiruvananthapuram, Tharoor’s
SBSP 6/19 SBSP 1.36% SP’s allies BSP 10/38 BSP 19.43% total of four seats from the according to most opinion polls, popularity as a global citizen is
BSP 19/403 22.23% 1/403 12.88% RLD 0/3 RLD 0.99% Congress-led United Democratic have the upper hand in Kerala. unmatchable," Jayashankar added.
Congress 1/80 6.36% Front (UDF) and the BJP in local Furthermore, in 2019, half of the For the time being, it seems to
Congress Was an SP ally - 2/399 2.33% body byelections held across sev- UDF, led by the Congress, won with be difficult for the Congress to repli-
In 2019 LS, the SP-BSP alliance didn’t contest Amethi and
*SBSP is Suheldev Bharatiya Samaj Party Rae Bareli seats. Source: Election Commission of India eral districts. a margin of more than 100,000 cate the 2019 show.

Politics hots up in J&K before electoral spring

After many winters of despair, a spring of
hope beckons Kashmir. The bright sunny
days replacing the frigid 40-day Chilla-i-
Kalan have warmed up the Valley’s frozen
political landscape and sparked a flurry of
activities among its politicians.
Mainstream political leaders are busy
meeting party workers, holding rallies
and conventions across the Union
Territory (UT) to woo voters. They are all
agog for the upcoming Lok Sabha polls,
likely to be followed by the eagerly
awaited Assembly elections in Jammu
and Kashmir (J&K) this year.
“We are gearing up for the Lok Sabha
polls. We have been meeting people, it’s
limited mostly to workers,” senior Peoples
Democratic Party (PDP) leader Naeem
Akhtar told Business Standard.
The former minister of education,
however, said he was unsure whether the
parliamentary polls would pave the way
for Assembly elections. In December, the
Supreme Court asked the Election
Commission of India to conduct
Assembly polls in Jammu and Kashmir
by September this year.
“There have been many Supreme
Court decisions which have not been
implemented in the past. If they had been
serious about it, they could have held
them with the Lok Sabha polls. It would
Political leaders are busy
meeting party workers,
holding rallies and
conventions across the
UT in the run-up to Lok
Sabha and Assembly
polls, writes MERAJ BHAT
have saved effort and people would have
got something to look forward to,
although I don’t have much hope in the
new system. It will be a helpless,
powerless Assembly, but even that is
perhaps being denied,” he said.
“So, I don’t see anything happening
very soon, and if Prime Minister Narendra
Modi is re-elected again, we can forget
these things for a long time.”
J&K has been without an elected
government since June 2018, when the
Bharatiya Janata Party (BJP) withdrew
support to the Mehbooba Mufti-led
government, citing the deteriorating
security situation in the erstwhile state.
Veteran Communist Party of India
(Marxist) leader Mohammad Yusuf
Tarigami said the Supreme Court’s order
Last elections in J&K were the District Development Council polls in 2020. The SC has
ordered Assembly polls in the UT by September this year
should be respected and polls should be
conducted. Parliamentary polls are the
priority for all stakeholders right now, he
said, asserting that while there was “no
ambiguity” about the Lok Sabha polls,
uncertainty still hovered over the
Assembly elections.
The four-time MLA from Kulgam hit
out at the BJP for its claim of ushering in a
period of prosperity in J&K, and said no
projects that could generate jobs had been
announced. “We are seeing signs of
disappointment even within the Jammu
PHOTO: PTI
and Ladakh regions, which were
otherwise believed to be satisfied with the
government’s decision to divide the
erstwhile state,” he told Business
Standard. “The people of Leh are
demanding the restoration of statehood,
and in Jammu, locals are dissatisfied
because they feel their land and jobs have
been taken by outsiders.”
In Jammu, the BJP’s traditional
stronghold, poll preparations are in full
swing. “The party is working hard for the
upcoming parliamentary polls. We will
REDRAWING THE
ELECTORAL MAP
Delimitation panel gives six more seats
to Jammu and one to Kashmir
Ladakh is a separate Union Territory
n JAMMU n KASHMIR
Total
Previous 37 46 83
New 43 47 90
fight on our own in all five seats of Jammu
and Kashmir and one seat of Ladakh …
The lotus is blooming in the whole of
Jammu and Kashmir and its fragrance is
reaching Ladakh,” said Ravinder Raina,
the BJP’s J&K president. He asserted his
party will form the next government with
its own chief minister in J&K.
Responding to the BJP’s claim of
forming the government, Tarigami said:
“I don’t know how the government claims
it will win the election without doing
anything... They have virtually snatched
the rights of the people of Jammu and
Kashmir, and Ladakh.”
The BJP made significant gains in the
Jammu region in the last Assembly
elections in 2014, winning 25 of the 37
seats. The party, however, failed to open
its account in Kashmir and Ladakh.
Noor Ahmad Baba, a former professor
of political science at the Central
University of Kashmir, said the BJP was
aiming at making political inroads and
building its base in the Valley before the
polls. Noting that there was no hindrance
to conducting the polls in the Valley, he
said a lot would depend on the outcome of
the Lok Sabha elections.
“They should have held the polls
earlier. People have hopes and
expectations. They would prefer an
elected government and democracy.
More importantly, they would want
restoration of statehood. But currently,
it’s the bureaucracy at the central level
that is calling the shots,” he said.
The Assembly polls were last held in
J&K in 2014. Since then, the erstwhile
state has lost its special status and was
bifurcated into two UTs — J&K and
Ladakh — in August 2019, when the
Centre made inoperative Article 370 of
the Constitution. Its Assembly
constituencies were redrawn following
the Delimitation Report in 2022.
The undivided J&K had 87 Assembly
seats, of which 46 were in Kashmir, 37 in
Jammu and four in Ladakh. The new J&K
Assembly has 90, of which 47 form the
Kashmir region and the remaining 43
belong to Jammu. There are also 24 seats
in Pakistan-occupied Kashmir (PoK) but
they remain vacant.
 8 WORLD
>
MUMBAI | MONDAY, 26 FEBRUARY 2024

Trump trounces Haley on home turf Oil tankers in short

supply as Red Sea
REUTERS
“I’MNOTGIVINGUPTHISFIGHT
attacks divert trade
25 February
WHENAMAJORITYOF

D AMERICANS
onald Trump easily defeated
Nikki Haley in South
Carolina's Republican contest DISAPPROVEOF SHARON CHO & ALEX LONGLEY
on Saturday, extending his winning
streak as he marches toward a third
BOTHDONALD
TRUMPAND
25 February
Hostage deal
consecutive presidential nomination
and a rematch with Democratic JOEBIDEN”
Longstanding warnings from
the oil tanker industry that
unclear, says
President Joe Biden.
The former president had been
Nikki Haley, Ramaswamy, too few of the ships are being
built are coming back to
Netanyahu
American politician
widely favoured to win the Southern
state, despite his litany of criminal
and diplomat Noem top haunt the market after
Houthi attacks on commer-
Israeli Prime Minister
Netanyahu on Sunday said
charges and Haley's status as a native contenders cial shipping caused wide- it was not clear yet
of South Carolina who won two terms
as governor. people away,” Haley told supporters
for VP pick spread diversions in global
petroleum trades.
whether a hostage deal
would materialise from
The big win bolstered calls from Saturday night. “I’m not giving up this Donald Trump should tap Just two new super- ongoing talks, declining to
Trump's allies that Haley, his last fight when a majority of Americans Kristi Noem or Vivek tankers are due to join the discuss specifics but saying
remaining challenger, should drop out disapprove of both Donald Trump and Ramaswamy as his running fleet in 2024 — the fewest the Islamist militant group
of the race. Joe Biden.” mate ahead of a likely additions in almost four dec- Hamas needed to “come
But Haley, who outperformed “IHAVENEVERSEENTHEREPUBLICAN Former US President Donald
But she has so far failed to persuade November rematch with ades and about 90 per cent down to a reasonable
expectations based on opinion polls, PARTYSOUNIFIEDASITISRIGHTNOW“ Trump at a presidential primary
election night party in Columbia,
Republican primary voters, even those President Joe Biden, below the yearly average this situation” Netanyahu,
defiantly insisted she would fight on in South Carolina who know her best. according to attendees of millennium. But after owners speaking in an interview
at least through "Super Tuesday" on
Donald Trump, former US president South Carolina PHOTO: REUTERS
But there is scant evidence that a the Conservative Political increasingly started to shun with CBS News, added he
March 5, when Republicans in 15 states majority of Republican voters is Action Conference. the southern Red Sea, the was meeting with staff
Primary Candidate No. of votes Votes(%)
and one US territory will cast ballots.
Trump won with 59.8 per cent sup-
SOUTH CAROLINA Donald Trump 4,51,905 59.80
interested in any standard-bearer
except Trump.
Noem, the South Dakota
governor,andRamaswamy,
lack of new capacity is start-
ing to bite: rates have seen
later on Sunday to review a
dual military plan that
port against 39.5 per cent for Haley REPUBLICAN Nikki Haley 2,98,681 39.5 Immigration, which Trump has who ran unsuccessfully for spikes, and voyage durations included the evacuation of
with 99 per cent of the expected vote
tallied, according to Edison Research. PRIMARY Ron DeSantis
Vivek Ramaswamy
2,951
726
0.40
0.1
made a focus of his campaign, was the
number one issue for voters on
theRepublicannomination,
tied with 15 per cent support
are going up.
Rates had been held in
Palestinian civilians in
Gaza and an operation to
Statewide opinion polls before
Saturday had given Trump an average
RESULTS Chris Christie 657 0.10 Saturday, according to an Edison exit
poll. Some 39 per cent cited that issue,
among CPAC attendees at
the conference outside of
check last year as OPEC and
its allies kept oil off the mar-
destroy remaining Hamas
battalions. BLOOMBERG
lead of 27.6 percentage points, accord-
Ryan Binkley 527 0.1 above the 33 per cent who said the Washington when asked in ket. At the same time, a wider
Note: >95% of votes in; 88% of delegates Total 7,55,807
ing to the tracking website 538. allocated (44 of 50) Source: Associated Press economy was their top concern. a straw poll who Trump energy transition is meant do
“Forty percent is not some tiny Approximately 84 per cent of voters should pick as his vice away with fossil fuels — dim-
group,” Haley said of her vote share. said the economy is not so good or presidential candidate. ming the industry’s outlook
“There are huge numbers of voters in the Republican nomination. Party so unified as it is right now,” poor, highlighting a major potential Former Democratic US in the longer term. But
our Republican primaries who are say- Trump gave his victory speech in he said. weakness for Biden in November's Representative Tulsi increased avoidance of the
ing they want an alternative." Trump Columbia, the state capital, minutes In recent days Haley had notably general election. Gabbard of Hawaii was southern Red Sea is adding to
has dominated all five Republican pri- after the polls closed and did not men- sharpened her attacks on Trump, Once again, however, exit polls also third at 9 per cent, followed the duration of trades that
mary contests thus far — in Iowa, New tion Haley, claiming his party's mantle questioning his mental acuity and pointed to Trump's own vulnerabil- by US Senator Tim Scott of had already become elon-
Hampshire, Nevada, the US Virgin as he looked ahead to November's gen- warning voters he would lose the gen- ities. Nearly one-third of voters said South Carolina and Elise gated due to Russia’s war
Islands and now Haley's home state - eral election. eral election to Biden. he would be unfit to serve as president Stefanik of New York at 8 in Ukraine.
leaving Haley with no evident path to “I have never seen the Republican “Nearly every day, Trump drives if he were convicted of a crime. per cent each. BLOOMBERG “The impact of the diver-
sions can be seen every day
in shipping in general and I steer clear.
IN BRIEF US narrows
would say crude oil and pro- That all changed last

Belarusiansvoteincontrolled gap with China

Buffett: Berkshire’s days of duct tanker shipping” specif-
ically, Alexander Saverys,
chief executive officer of
month, after US and UK
forces bombed Yemen in an
effort to quell the incidents.

eye-popping gains are over

Euronav NV, one of the However, the military inter-
electionamidboycott calls on diplomatic largest pureplay owners, said
on an earnings call earlier this
ventions didn’t stop the
Houthis and instead have led
Polls opened on Sunday in Belarus' tightly controlled
parliamentary and local elections that are set to cement the missions Berkshire Hathaway’s cash pile grows to record $168 bn
month. Combined with few
new deliveries and an aging
to many of the world’s top
tanker owners staying away.
steely rule of the country's authoritarian leader despite calls for a fleet, the outlook for tankers “The situation is tight
boycott from the opposition, which dismissed the balloting as a BLOOMBERG AGENCIES needle at Berkshire, and they had, such as its purchases of is “very positive.” While other in the tanker market, in par-
“senseless farce”. President Alexander Lukashenko has ruled 25 February 25 February have been endlessly picked insurers Geico and National commercial vessels — espe- ticular for crude oil tankers,”
Belarus with an iron hand for nearly three decades and on over by us and by others,” Indemnity or the BNSF rail- cially container ships — start- said Enrico Paglia, research
Sunday announced that he will run for the presidency again The US has narrowed the gap Warren Buffett warned Buffett wrote. road. He also assurerd that his ed to avoid the Red Sea soon manager at Banchero Costa,
next year. He accuses the West of trying to use the vote to with China in the number of Berkshire Hathaway share- Warren Buffett on Saturday more than $900 billion con- after the attacks started a shipping services firm.
undermine his government and “destabilise” the nation of diplomatic posts they both holders that there is "no pos- moved to reassure investors glomerate has become a for- in November, oil and fuel It “will be even tighter in
9.5 million people. AP run, according to a new sibility of eye-popping per- that his conglomerate tress that could withstand even tankers were slower to the future.” BLOOMBERG
report, highlighting the formance." And that they Berkshire Hathaway would an unprecedented financial
nations’ race for influence "should do a bit better". serve them well over the long disaster and that "Berkshire is
Corruption scandals cast a around the world. “There remain only a hand- term, even as he mourned the built to last," Buffett wrote.

shadow over Portugal’s poll

China has the most such
offices of any country, with
ful of companies in this coun-
try capable of truly moving the
recent passing of his longtime
second-in-command Charlie
The letter was accompa-
nied by Berkshire's financial
Qatar plans fresh gas output
Corruption scandals have cast a shadow over the ballot in the
274, according to the Global
Diplomacy Index released by
Munger. In his widely-read
annual letter to Berkshire
results, including a record $37.4
billion operating profit and boost amid price collapse
early general election in Portugal. The Socialist Party and Social the Lowy Institute in Sydney shareholders Buffett said that $96.2 billion net profit for all of Qatar will further raise gas further 16 million tonnes per
Democratic Party have also fed public disenchantment with the on Sunday. The US has 271 there were very few deals that 2023. Berkshire's shares have production despite a steep annum (mtpa) to existing
country's political class as Portugal prepares to celebrate 50 years after having eight fewer posts offer the kind of transformative risen by 4,384,748 per cent drop in global gas prices, expansion plans, bringing
of democracy, following the Carnation Revolution that toppled a than the Asian nation in 2021. impact past takeovers have since Buffett took over in 1965. pushing ahead with totalcapacityto
rightist dictatorship on April 25, 1974. AP China has a bigger pres- plans to extract more 142mtpa.
ence in Africa, East Asia, WARREN BUFFETT ON CHARLIE MUNGER of the resource amidst The Qatari
Pacific Island countries and fierce competition announcement
Samsung to unveil wearable Central Asia. The US leads in CHARLIEWASTHEARCHITECTOFTHEPRESENTBERKSHIRE, with rivals such as the comes as US gas prices
Europe, the Americas and United States. trade near an all-time
ANDIACTEDASTHE‘GENERALCONTRACTOR’TOCARRYOUT
smart ring at MWC South Asia.
China has pushed in THEDAY-BY-DAYCONSTRUCTIONOFHISVISION”
QatarEnergy chief Saad
al-Kaabi announced on
low if adjusted to inflation
after a decade of meteoric
SamsungElectronicsisplanningtounveilitsfirstwearablesmart recent years to be seen as a Sunday a new expansion of rises in output which made
ringaspartofitshealthlineupattheMobileWorldCongressin key voice of the Global South, WARREN BUFFETT, its liquefied natural gas the US one of the top oil and
Barcelona.TheSouthKoreancompanywillpubliclydisplaythe a reference to emerging- Chairperson, Berkshire Hathaway production that will add a gas exporters. REUTERS
GalaxyRingforthefirsttime.TheGalaxyRingoffersusersmore economy nations.
personalisedandseamlessexperiencesbackedbyadvancesin
artificialintelligence,SamsungsaidSunday. BLOOMBERG Fed-favoured inflation

IMF conditions for $1.2 billion tranche met: Pak

gauge seen rising most
in a year
Underlying US inflation
Zong Qinghou, beverage probably rose in January by
the most in a year, as tracked
tycoon in China, dies at 79 by the Federal Reserve’s pre-
ferred metric, highlighting
Zong Qinghou, the self-made billionaire the long path to taming price
who became China’s richest man by pressures. The core personal
wresting control of the country’s top consumption expenditures
beverage brand from Danone, has died. price index , which excludes
He was 79. The founder and chairman of food and energy costs, is seen
Wahaha Group died of illness at a hospital rising 0.4 per cent from a
at 10:30 am on Sunday, according to a month earlier. That would
statement that doesn’t provide further mark the second straight
details on the cause of death or the monthly acceleration in a
location of the medical facility. BLOOMBERG gauge that’s been receding
over the two years. REUTERS
PRESS TRSUT OF INDIA
Islamabad, 25 February
Pakistan has met the IMF’s
benchmarks for maintaining
the status quo in the energy
sector — in an outcome that
may help to get the next loan
tranche of $1.2 billion, officials
said, ahead of the visit of the
global lender’s review mission
to the cash-strapped country.
The Ministry of Energy
officials said they have met
the end-December targets implementation of these tar- vincial levels is complete.
related to containing the flow gets during the loan negotia- Citing sources, the paper
Pak gears up to hold
of circular tions under the said that against the condition President’s election
debt below The country has second review to restrict the flow of the cir- by March 9
Pakistani ~385 committed to the IMF of the $3 billion cular debt to Pakistani ~385
billion, timely that it would contain bailout pack- billion by end-December, the Still struggling to address the
increase in the the circular debt at age. increase was Pakistani Rs 378 rigging allegations after general
electricity June 2023’s level of The IMF’s billion, which was slightly elections in the country, Pakistan
prices, and Pakistani Rs 2.31 trn review mission better than the IMF require- is now gearing up to elect the
slowing the might visit ment. Pakistan has com- new president by March 9.The
increase in line losses, The Islamabad by the end of this mitted to the IMF that it ElectionCommissionof Pakistan
Express Tribune newspaper month or early next month, would contain the circular is set to hold an election for the
reported. provided the government for- debt at June 2023’s level of office of the country's president
The IMF would review the mation at the federal and pro- Pakistani Rs 2.31 trillion. by March 9. REUTERS

IMAGING: AJAY MOHANTY

Thecostofnuclearwarinspace THE LOOPHOLE

EPHRAT LIVNI & VIVIENNE WALT
25 February
JustbeforetheRussian-Ukrainianwar
reacheditstwo-yearmilestonetoday,US
intelligenceagencieswarnedthatRussia
mightaimanuclearweaponatan
unusualtarget:notanyplaceonEarth,
butsatellitesorbitinginspace.
o Puttingaweaponintoorbitisnotjust
amilitarythreat.It’salsoarisktothe
the spaceeconomy—andtheoneonthe
ground.Thereisalittle-knownbutfast-
growingindustrythatinsuressatellites,
butitdoesn’tprovideinsuranceagainst
nucleararms.
What’satstake:Hundredsofbillions
(andprobablytrillions)ofdollarswhen
includingtheservicesthatrelyon
satellites,accordingtoDavidWade,an
underwriterattheAtriumSpace
InsuranceConsortium,whichinsures
satellitesforLloyd’s.
Ofmorethan8,000satellitesinorbit,
thousandsbelongtoprivatecompanies,
accordingtoOrbitingNow,asitethat
compilesreal-timesatellitetrackingdata
fromNASAandothersources.The
Russianweaponissaidtobedesignedto
targetsatellitesinlowEarthorbit,where
mostcommercialsatellitesoperate.
SpaceX’s Starlink dominates the
space-based internet services industry,
and Amazon also has big aspirations in
space. But the sharp drop in launch
costs in recent years — driven largely by
SpaceX — has made entry possible for
many smaller players, leading to a
satellite-business frenzy that prompted
the Federal Communications
Commission to open a Space Bureau
last year.
Wadeestimatedthetotalvalueofall
insuredsatellitesinorbitat$25billion.
Thatdoesn’tincludetherevenuethey
generate.TheSatelliteIndustry
Associationestimatedrevenuesfor
nongovernmentalsatelliteservicesat
$113billionin2022.
Investmentinthespaceeconomyis
increasingquickly.Spaceactivitycould
total$620billionthisyear,accordingto
themostrecentlyavailableestimate.
That’supfrom$545billionin2022,
accordingtoanestimatefromtheSpace
Foundation,anonprofitthatpromotes
spaceeducationandenterprise.
Aspirationsforthespaceeconomy
includeminingforraremineralsand
water,tourism,communications,and
datatransferinfrastructure.On
Thursday,alunarlanderfromIntuitive
Machines,travellingonaSpaceXrocket,
becamethefirstprivatecrafttolandon
themoon,whichsomearehopefulleads
tominingforwaterthatcouldbeusedto
makefuelformoredistantindustrial
missions.
Aspaceweaponwouldcastapall
acrossotherbusinesses,too.Industries
fromagriculturetotechdependon
satellites,andsectorslikeshipping,
transport,bankingandsupplychain
managementrelyonGPS,whichuses
satellites.Thethreatwouldalsohave“a
depressiveeffect”onspacecompany
valuationsbroadly,saidDonaldMoore,
CEOoftheSpaceFinanceCorporation
andaspacepolicylectureratthe
UniversityofMichiganLawSchool.
Thenewthreatcouldalsoputadent
n There is a fast-growing
industry that insures
satellites, but it doesn’t
provide insurance against
nuclear arms
n Hundreds of billions of
dollars when including the
services that rely on
satellites are at stake
n This new threat could
also put a dent in the US
government’s plans to
rely on private players
intheUSgovernment’splanstorelyon
privateplayersjustastheDepartmentof
Defenseisexpectedtoreleasedetailsofa
newstrategytointegratecommercial
satellitesinnationalsecurity,noted
BrianWeeden,thechiefprogramofficer
fortheSecureWorldFoundation,a
nonprofitthatworksonspacepolicy.
Somearescepticaloftherisk.The
preciseeffectswoulddependon
unknownsabouttheweapon,company
contingencyplanningandotherfactors.
“Wecouldstillcommunicate,”said
HenryHertzfeld,aspacepolicyprofessor
atGeorgeWashingtonUniversityand
formerchiefeconomistatNasa.“Westill
havesomelandlines,”headded,
speakingfromhisofficephone.Andhe
doubtsthatRussiawillintroducethis
menace,asitwouldalsoendangerits
spaceactivities.Notably,itwouldalso
violateaninternationalspacetreaty.
Buttheriskisnotcoveredby
insurance.“Exclusionsforactsofwar,
antisatellitedevicesandnuclear
reaction,nuclearradiationorradioactive
contamination(exceptforradiation
naturallyoccurringinthespace
environment)aretypicallylistedina
spaceinsurancepolicy,”Wadesaid
inanemail.
TheUSspacemodeldependsheavily
oncommercialisation,notedRussell
Sawyer,aspaceinsurancebrokerat
LocktoninLondon.
©2023 The New York Times News Service

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 >
OPINION 9
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM

VOLUME XXVIII NUMBER 166

MUMBAI | MONDAY, 26 FEBRUARY 2024

Red signal for green dilution Three lessons from two years
Hard new questions for policy makers in a post-Ukraine War world have launched offensives that largely failed thanks
SC underlines the need for better compliance to enormous, First World War-style entrenchments.

T
ILLUSTRATION: AJAY MOHANTY The air war that so determined the victories of US-
he Supreme Court has administered an important corrective, directing led coalitions in the past decades was largely absent
the government to follow the wider “dictionary definition” of forests as in terms of deciding outcomes in the battlefield,
laid down in a two-Bench judgment of the apex court in 1996. The latest although missiles continued to rain down on unpro-
judgment was passed by a three-judge Bench on several petitions against tected Ukrainian cities. Instead of air cover, control
the amendments to the Forest Conservation Act (FCA), passed by both Houses of of the front could be determined by much cheaper
Parliament in 2023. These amendments made the FCA applicable only to notified unmanned aerial vehicles.
forest and land identified as “forest” in government records. The stated reason for Similar drones have been used to reduce the effi-
the amendments was that the 1996 judgment applied the provisions of the FCA to cacy of Russia’s Black Sea Fleet. Indeed, cheaper meth-
recorded forests that had been put to non-forest uses. This had been a long-standing ods of sea denial are also being experimented with by
demand of infrastructure ministries, particularly of roads and highways. But the Houthi rebels in the Red Sea. The broader impli-
petitioners against the amendments had suggested that millions of hectares of cations of this are troubling. A reduction in the cost of
forests stood to be declassified as a result. More worryingly, the amendments had war-fighting lowers the threshold for military action.
It allows for non-state agents and private military com-
allowed zoos and safaris to be set up inside forests. As a result, Haryana, for instance,
panies to become players once again. The difficulty of
had planned an animal safari park in the pristine forest of the Aravallis. The Supreme maintaining secure supply lines will have increased.
Court’s order also stipulated that all such plans required court approval. While Thus, not just the invasion but the actual process
reverting to the 1996 definition for forests, the Supreme Court has also asked the of fighting the Ukrainian war may have heralded a

I
government to prepare a consolidated record of all kinds of forests across the country. n the two years since the Russian Federation sent relationship has grown stronger. The North Atlantic new and more disordered world. National policies will
This means that states and Union Territories have to submit records of forests tanks into Ukraine, how has the world changed? Treaty Organization, for example, has expanded. have to privilege more basic tasks of security that have
identified by expert committees set up under the 1996 judgment. The government What are the implications for future national President Joe Biden of the United States has been care- been perhaps forgotten during the past decades.
has the deadline of April 15 to submit this data. policies, both geopolitical and geo-economic? Is this ful to ensure Washington’s outreach to its European The final implication for policy is that the interna-
This judgment is one of several by the judiciary in restoring some semblance of simply a European war with few implications for the allies on security matters has expanded. But it is pos- tional financial system, once regarded as a public good
balance against the steady weakening of environmental laws in recent years on the rest of us, as long as we can manage the spillovers sible that this too misses the longer-term trends. The or at least one of the global commons, is now viewed
pretext of development. One decision, which is pending a Supreme Court appeal, is into food and fuel supply chains? I think not. There Russian invasion has reminded Europe of the need for as too easily weaponised by the West. The early shut-
to grant retrospective approval to companies that had not complied with conditions are in fact three trends that will need us to shift how it to develop hard power; and, meanwhile, the act of downs of the SWIFT global banking transmission sys-
to obtain environmental clearance under the Environmental Protection Act. Over we think about policies at the national level, supporting Ukraine — and thereby underwriting templayedintoexistingfears,bornoutofearlierrounds
particularly in India. European security — is less and less popular in the of sanctions on countries like Iran, that the pipelines
100 projects in such environmentally damaging industries as cement, coal, iron
First, the world is more — not less United States. The natural endpoint ofglobalfinanceweretooeasilycapturedbystatepower.
and steel, bauxite and limestone mining were granted exemption under this 2017
— fragmented than earlier. There was oftheseprocessesisaEuropelessable A Rubicon will be crossed if the Russian central bank’s
provision until the Supreme Court stayed it this year. Meanwhile, in 2022, the Union a sense in 2021 that the world was torelyonWashingtonandmoreincen- hundreds of billions of dollars of reserves in the West
environment ministry had proposed to scrap the need for environmental approval moving swiftly towards a new Cold tivised to make its own way in the are confiscated. On the one hand this is tempting,
for a raft of infrastructure projects — highways, airports, fishing ports, thermal War, with two blocs in competition. world.TheAmericansarehelpingthis especially when the Ukrainian war effort is running
power plants, and so on — located within 100 km of the Line of Control or an inter- The West and the People’s Republic process along economically by out of resources in part thanks to political dysfunction
national border. Later, following dissent notes from some Opposition parties, a joint of China were interconnected but enhancingtheirownindustrialpolicy in the United States. On the other hand, it will unques-
parliamentary committee clarified this would not entail “blanket permission” and seemed to have incompatible sys- and subsidising their own industry at tionably weaken one of the pillars of the global order
was not open to the private sector. Given the ecologically sensitive nature of India’s tems; and they were drawing to them- theexpenseofEuropeancompetitors. that the West claims to wish to defend. The policy
border areas, whether in the mountains or on the coast, this clarification is unlikely selves, or seeking out, like-minded Meanwhile, some countries — implications for central banking and financial stability
to allay environmentalists’ fears. Land subsidence across several towns in countries to create new alliances in such as India — which appeared to are unclear but could certainly be significant.
Uttarakhand remains a cautionary tale of the dangers of over-construction.
The government has frequently wielded security or development needs as
opposition to each other.
This process may have broken
POLICY RULES be slowly shifting into an anti-Beijing
(and thus pro-West) position in global
The Indian government has been forced to respond
rhetorically to the crisis that exploded two years ago.
reasons for overriding green checks and balances. For instance, it said the rationale down. The largest component of any MIHIR S SHARMA affairs have had this progress slowed But it has chosen to frame it as a European problem
pro-Beijingbloc,Russia,mayhavetak- by the success domestically of a pro- with global spillovers. In fact, the Ukrainian war has
for the 2023 amendments to the FCA was that the law came in the way of building
en up arms against what it perceives Moscow narrative over the past two exposed some global trends, accelerated others, and
schools, toilets, and facilities for tribals. However, the amendment was redundant to be the West; but few Russians would agree this years. Instead of a consolidation with the West around slowed yet others. This will need a more considered
because the Forest Rights Act enabled the government to override the FCA and means they wish to become dependent upon China. a defence of sovereignty — such a defence being long policy approach from realms from the military to the
divert forest land for such projects. Given the rapid scale of degradation of India’s Tobeanti-Westdoesnotmeanthatyouarepro-Beijing. the primary pillar of India’s interventions in world financial than has so far been on offer in New Delhi.
natural bounty, as the state of the forests reports highlight with depressing regularity Yes, China has become far more important for Russia affairs — the Indian government has been at pains to Even if there is a stalemate in Ukraine, or a peace set-
the trend towards looser environmental controls in the name of development as an economic and political partner than earlier; but demonstrate its independence from Western tlement — the latter of which seems unlikely — there
urgently needs to be revisited. Moscow is also freshly conscious of its status as the approaches to the Ukraine war. Policies, in India and is no returning to the status quo ante. The new post-
centre of an independent sphere of influence. beyond, have shifted towards asserting autonomy and Ukraine normalcy will need a different set of policies
Meanwhile, Beijing — which prizes stability — has independence from both possible poles of a bipolar if national and economic security is to be maintained.

Munich AI accord been reminded of the unpredictability of its giant order — and thus made a bipolar order less likely.
northern neighbour. Second, the rules of war-fighting seem to have
It is also commonly argued that the transatlantic changed. First the Ukrainians and now the Russians
Thewriterisdirector,CentrefortheEconomyandGrowth,
ObserverResearchFoundation,NewDelhi
Big Tech commits itself to countering election misuse

O
nFriday,theworld’s20largesttechcompaniesandsocial-mediaplatforms

The spectacular flameout of Byju’s

signed an accord, “The Tech Accord to Combat Deceptive Use of AI in
2024 Elections”, at the Munich Security Conference. This is a commitment
to prevent deceptive artificial-intelligence (AI) content from interfering
in elections. It is timely — over 40 nations, including India, the US, and the UK, are

B
slated to vote in new governments in 2024, affecting the fate of over four billion yju’s is set to go down as the most spectacular
people. Harmful AI-generated content meant to deceive voters could cast a malignant corporate flameout. Little more than a year
shadow over democratic processes. The signatories will collaborate to detect and ago, India boasted five decacorns, an elite
address online distribution of fake AI content, drive educational campaigns, and group of only 47 startups around the world valued
provide transparency about AI usage in generating political content. The accord at $10 billion (bn)
also includes a broad set of principles, such as the importance of tracking the origin Of these, the most valuable Indian decacorn was
of deceptive political content and the need to raise public awareness about it. Using Byju’s. Despite a loss of ~4,588 crore in FY21, Byju’s
modern tools, it is easy to generate authentic-seeming audio visual (AV) content was valued at $22 bn in early 2022. It even wanted to
get itself listed in the US, by merging with a publicly
featuring a politician, or indeed anybody.
traded shell company in that country, at an eye-pop-
The use of AI as such may not be harmful to democratic processes. Campaigns
ping valuation of $48 bn. It was a huge bubble, propped
legitimatelyusingAIshouldlabelandflagit,anditshouldnotbedeceptivelydeployed. up by Byju’s’ deep-pocketed private-equity (PE)
Imran Khan’s political party, the Pakistan Tehreek-e-Insaf (PTI), used AI to generate investors. On Friday, some of those investors voted at
speeches penned by him during the recent Pakistan elections and this allowed him an extraordinary general meeting
tocampaignfrombehindbars.However,AIwasalsousedintherecentNewHampshire (EGM) to remove Byju Raveendran,
(US) presidential primaries to generate fake robocalls in Joe Biden’s voice to dissuade Byju’s founder and chief executive
voters from turning up. The content the accord addresses could be AI-generated officer, and to reconstitute the board.
audio, video, or images that fake or alter the appearance, voice, or actions of political Even if these investors gain control
candidatesandelectionofficials,orprovidefalseinformationaboutvotingprocesses. of Byju’s, it is beyond redemption.
This could be done to discredit a politician, or distort a political message, or confuse Byju Raveendran set up Think &
voters and dissuade them from exercising their franchise. Learn in 2011, got his first funding in
The accord aims to develop methods to identify deceptive content, label it, and 2013 and launched The Learning App
in 2015, which became a case study
prevent dissemination on their platforms. Meta, X, Google, LinkedIn, IBM, Adobe,
at Harvard Business School. In 2017,
OpenAI, Amazon, TikTok, and Microsoft are signatories. A successful collaborative
effort by them would restrict the spread of such content on large social media
Byju’s appointed Rukh Khan its
brand ambassador and, over the next
IRRATIONAL CHOICE
platforms or search engines. Moreover, many key players developing AI tools, such seven years, amped up the business DEBASHIS BASU
as OpenAI, are also signatories. They could try to monitor use of AI tools, or deny with 29 rounds of funding to raise
access to these for generating political content. over $5 bn. Of this, it blew up more than $2.5 bn in
But such tools are also evolving. It will not be an easy task to prevent AI usage 2021 and 2022 on acquisitions alone. In 2019, it became
or detect deceptive content, and check it from going viral. It is unclear how this is the jersey sponsor of the Indian cricket team. In 2022,
to be accomplished. It will take a big research and development effort by the it appointed Lionel Messi as its global brand ambas-
industry to detect and label AI usage in political AV content, and to discover the sador and became the official sponsor of the FIFA
originators of such stuff. Moderating it would also be a huge task. Lawmakers World Cup at Qatar, in what would appear to be the
would have to cooperate, and some may be reluctant to do so if the content peak of its fake glory. The remarkable thing is that all
concerned aids their cause. Moreover, it needs to be pointed out that a “bad actor” through this the investors missed/ignored too many
using AI to make political content need not necessarily be hired by a political party. red flags back from 2018.
It could be an overseas agency pushing the agenda of another nation. Or, it may be Toomanyredflags
somebody trying to create engagement, using political content as “clickbait”. It is n Byju’s’ products weren’t attracting customers organ-
important that this campaign is not merely symbolic due to the high stakes. If the ically, but were pushed through aggressive sales tactics,
signatories don’t get it right, democratic processes could indeed be subverted with which was called out by Anirudh Malpani, a well-
terrible global outcomes. known Mumbai doctor and now an angel investor. Dr
Malpani has written more than 50 articles on his blog
https://www.indianangel.in/?s=Byju starting with a
September 9, 2018, piece titled “Byju’s is a money-rais-
ing machine. The real question is – will it become a
money-making machine?” The last of Dr Malpani’s
articles was titled “How Byju’s cheats parents”. Dr
Malpani diagnosed the Byju’s problem thus: “They
taught their sales-people to mis-sell by blaming and
shaming parents, who are vulnerable. They exploited
theirignorancebybad-mouthingschoolsandteachers,
and warning them that their kids would be left behind
in the competition if they did not buy the Byju’s apps.
They locked them into multi-year subscriptions by
offering discounts for payments made using EMIs
through a third-party financer, and
once parents had signed these con-
tracts, they were stuck and could not
cancel.” To investor activists, who are
now concerned about Byju’s’ ethics
and governance, this should have
beenahugeredflag.Insteadtheykept
pumping in money helping this toxic
business grow bigger.
n Dr Malpani was a prolific writer on
LinkedIn on a wide range of topics
covering the startup ecosystem
includingcriticalpostsonByju’s’work
culture, business model, and user
experience. In July 2020, Dr Malpani
claims his account was deleted. Byju’s is apparently
one of the top advertisers in LinkedIn. According to
Dr Malpani, “They (Byju’s) complained to LinkedIn,
claiming my posts were defamatory —even though
they knew the posts were completely true, and in turn
LinkedIn permanently deleted my account, without
giving me a chance to be heard, or to appeal!”
n All valuable tech startups have a common feature:
They address a serious and widespread problem that
consumers face, with a solution that works and, better
still, that consumers love. Byju’s is not solving any
problem and certainly does not have a solution that
anyone loves. This was most obvious during Covid. If
ever there was a period when Byju’s could have made
bumper revenues and profits, it was when schools
were closed and students and teachers had to adopt
an edutech solution. But Byju’s reported record losses
in FY21 and FY22.
n In December 2022, the National Commission for
Protection of Child Rights (NCPCR) alleged that Byju’s
was “stealing” phone numbers of students and sham-
ing/threatening them to buy its courses. Byju’s reacted
with a “strong denial” but later promised to ensure
positive consent while signing up students for its pro-
grammes, and to stop sales agents from going to peo-
ple’s homes. It has since lost cases in consumer courts,
and many employees have come forward to speak
about steep targets and aggressive sales pitches.
Without such tactics Byju’s would probably have a
fraction of revenues earned and losses would have
ballooned even higher. The fact is that massive layoffs
(25,000 employees laid off from the peak of over 58,000
in 2022), employee grievances, and customer com-
plaints show that Byju’s simply does not have a worth-
while business model; a basic fact that seems to have
escaped the smart PE funds that put Byju’s on steroids.
n In April 2023, the Enforcement Directorate (ED)
conducted searches at Byju’s parent firm, Think and
Learn Private Limited, and Raveendran’ house for
suspected violations of the Foreign Exchange
Management Act. In November 2023, the ED issued
showcause notice alleging violations of ~9362.35
crore. In June 2023, as Byju’s continued to totter,
Deloitte Haskins & Sells, which has audited it since
2016, and was supposed to continue doing so until
2025, stepped down with immediate effect, stating
that “the financial statements of the company are
long delayed”.
Byju’s is set to go the way of Housing.com and
Zilingo. It is only a matter of time. Indeed, the coup
attempted by investors will ensure that. It will be an
enormous distraction for the current management,
and, if and when a new management takes over, it
will discover that there is no worthwhile business to
run. Losses will spiral, the best of employees would
leave, and it will face a solvency issue, having run
out of cash.
The writer is editor of www.moneylife.in and a trustee of
the Moneylife Foundation; @Moneylifers

The men who made and unmade Twitter
The arc from gauzy ideals to the litter
box of reality has certainly been a weird
one. “It didn’t have to be this way,”
Wagner writes, in a book that traces the
history of the platform through the first
nine months of Musk’s tenure. Another
BOOK REVIEW new book, Zoë Schiffer’s Extremely
Hardcore, peers closely inside the
JENNIFER SZALAI company under Musk. Both authors
convey how the platform has struggled
incendiary rhetoric: “I think we need to
hear every extreme to find the
balance,” he said in 2016.
But finding the balance with
advertisers was another matter.
Wagner shows Dorsey becoming more
preoccupied with newer obsessions
like Bitcoin (“My hope is that it creates
world peace”) and less enchanted with
Twitter, where advertisers exerted
the possibility of their ads floating in a
cesspool of hate speech.
“Musk would often say the things
that his partners wanted to hear, and
then do the things that would make
them shake their head in disbelief,”
Wagner explains, rather wanly. Wagner
goes on to describe how Musk has
gutted the company: firing much of its
staff; instructing employees who
Extremely Hardcore, taking her title
from a memo Musk sent to Twitter’s
staff shortly after acquiring the
company. “The attributes that made
Musk good at tweeting — a
combination of recklessness and
shamelessness — made him
exceedingly bad at running Twitter,”
Schiffer writes.
As the managing editor of
Platformer, a newsletter that covers
social networks, Schiffer is attuned to
the connection between X’s culture
and its business model, such as it is.
Musk’s tweets.”
Dedicating so many resources to
improve the Twitter experience of a
single person seems spectacularly
inefficient, not to mention
suspiciously authoritarian. Schiffer
points out that despite Musk’s
insistence that he rolled back content
moderation rules in order to foster free
speech, he has also been complying
assiduously with censorship requests
from authoritarian regimes more
readily than the platform ever did
before he walked in with his sink.

T
his March, the social media
platform formerly known as
Twitter will turn 18 — a grown-
up in human years, even as the site
seems to be stuck in a crude
adolescence. In the opening pages of
Battle for the Bird, the Bloomberg
journalist Kurt Wagner recounts how
Jack Dorsey, one of Twitter’s founders
and its two-time chief executive, liked
to issue high-flown pronouncements
about fostering a “global
consciousness.” Barely 200 pages later,
Wagner describes how the billionaire
entrepreneur Elon Musk, who
acquired the platform in October 2022
and has since changed its name to X,
insisted on personally addressing the
complaints of a prolific poster known
as @catturd2.
to reconcile two imperatives: the constant pressure to Musk has treated his How this ends is anybody’s guess,
techno-libertarian promotion of free clean up the service. BATTLE FOR THE BIRD: EXTREMELY employees as if they though Schiffer does offer a memorable
speech and the techno-libertarian urge By the time he Jack Dorsey, Elon HARDCORE: were widgets, image, a mix of tragedy and farce.
to make lots of money. started encouraging Musk, and the $44 Inside Elon shedding people so Toward the end of Extremely Hardcore,
Wagner approaches Twitter as a Musk to buy the Billion Fight for Musk’s Twitter swiftly and she recounts how Musk changed the
business story, paying particular company, “running Twitter’s Soul Author: Zoë unceremoniously sign on Twitter’s headquarters in San
attention to Dorsey’s discomfort with Twitter had become Author: Schiffer that at times the Francisco, taking out the “w” to make
the pressures of running a publicly unfun for Dorsey,” Kurt Wagner Publisher: platform has barely one of his jokes, then removing that
traded company. Among a number of who declared that he Publisher: Atria Portfolio functioned. sign and putting a strobing X sign on
fateful decisions Dorsey made as chief trusted Musk “to Pages: 357 Pages: 330 Musk would get the roof without the required permit
executive was to lean into news. Yet he extend the light Price: $30 Price: $30 paranoid that a from the city. Eventually, after refusing
was skittish about accepting the costs of consciousness.” disgruntled employee to give inspectors access, Musk took
and responsibilities of a real news As for Musk, he was suppressing his down the sign.
organisation, insisting that Twitter’s seemed determined to break things as remained to “try weird stuff” and then “like” counts when he didn’t get the “The building had gone from
role was merely to serve as a platform soon as he entered Twitter’s offices throwing them under the bus when kind of response he expected. Schiffer TWITTER to TITTER to X,” Schiffer
for a cacophony of voices. Until Donald carrying a porcelain sink. (Musk was those risks didn’t pay off; reinstating reviewed documents about an writes. “And now, it was nothing.”
Trump was banned in January 2021 for playing on an earnest phrase people banned accounts while cracking down “engagement night” in early 2023,
fuelling an insurrection, Dorsey appended to serious tweets: “Let that on speech he didn’t like. during which employees threw The reviewer is the nonfiction book critic for
seemed unbothered by the fact that sink in.”) Still, he wanted to keep on Schiffer offers a more detailed look themselves into a “work marathon that The Times.
Twitter was amplifying Trump’s board the advertisers, who didn’t like under the smoke-filled hood in resulted in Twitter artificially boosting ©2024 The New York Times News Service
 QUICK TAKE: HONASA’S VALUATIONS RIDE ON GROWTH POTENTIAL “Investor confidence in China is close to

The Smart extreme levels of bearishness. There is a

Investor
(Share price in ~) The stock of Honasa Consumer has declined by 8 per cent probability that these moves (Beijing’s
over the past month. Citi Research maintains a ‘buy’ rescue measures) alleviate a
445.1 crisis of confidence and create
rating on the stock. Although absolute multiples are high,
MUMBAI | they are likely justified due to the firm’s strong business
a stronger investor base”
MONDAY, 26 FEBRUARY 2024 426.3 HAN PIOW LIEW
prospects, robust growth opportunities, portfolio of Head-Equity Derivatives,
digital-first brands, and improving financial metrics Maitri Asset Management
<

Improving leasing trends to Real estate services major

Colliers India, in a recent report,
said that over the next two years,
GCCs are expected to lease
45-50 msf of office space,
STREET
SIGNS

lay bricks of value for Reits

GRAND DESIGN: New SEZ rules and
rising GCC leasing set to elevate
occupancies and rentals, benefiting
Reits and office-focused developers
RAM PRASAD SAHU
Mumbai, 25 February
accounting for 40 per cent of the
total office demand across the top Sebi’s deep dive: Unmasking
six cities. Improved business sen- deepfake stock tactics
timent and a positive economic The Securities and Exchange Board of India (Sebi)
outlook are fostering heightened is monitoring the use of deepfakes and
The trend of higher rentals has demand for office spaces in India,
been the case through 2023. particularly signalling confidence
artificial intelligence (AI)-powered voiceovers
for spreading misinformation and misleading
Elara Capital Research, citing among foreign-origin companies investors. Sources said the regulator has
real estate consultancy Knight seeking to establish their stumbled upon the use of fake videos and
Frank, points out that despite capability centres in the country. voiceovers of popular personalities to promote
global volatility, India’s commer- In addition to technology and
cial real estate market was resilient banking, financial services and
stocks. A recent such video showcased Reliance
Industries Chairman Mukesh Ambani promoting
improvement in the quarter. Both in 2023, with office leasing rising insurance sectors, the growing a stock tips group — the catch was that his voice
Embassy Reit and Brookfield Reit by a notable 15 per cent year-on- interest of occupiers from was AI-generated. Experts said that with AI tools
posted their highest-ever quarterly year, resulting in the absorption of engineering and manufacturing becoming popular, it could pose a challenge for

W
ith the quarter witness-
ing the highest quarterly
gross leasing for a few
listed players, coupled with expec-
tations of rising demand for office
space, it is positive for listed com-
mercial developers as well as real
estate investment trusts (Reits).
The recent rules on special eco-
nomic zones (SEZs) and increas-
ing lease activity by global capa-
bility centres (GCCs) are expected
to boost both occupancies and
rentals going ahead. This will not
only benefit pure-play commercial
asset owners such as the four listed
Reits but also developers with
significant office portfolios, such
as DLF and Brigade Enterprises.
The immediate trigger for the
stocks is the strong performance
in the October-December quarter,
as well as calendar year 2023
(CY23). The recovery in demand
for office space has benefited
Reits, as gross leasing saw an
gross leasing since their initial
public offering.
The worry for the sector has
been a significant quantum of
exits, largely due to slowdown
concerns in the software and
information technology-enabled
services (ITeS). This has resulted
in net leasing (new leases less
exits) being in the negative.
However, while exits have con-
tinued, the pace of the same has
reduced, and all major developers
have reported net leasing to be in
positive territory in the quarter.
Nuvama Research points out
that in the third quarter of
2023-24, rentals saw an improving
trend. Analysts Parvez Qazi
and Vasudev Ganatra of the
brokerage highlighted that rents
have risen steadily for all office
Reits on the back of healthy
mark-to-market rates when
rentals come up for renewals.
The analysts also expect the
59.6 million square feet (msf) in and healthcare sectors is expected investors when it comes to discerning genuine
CY23 and within striking distance to diversify the GCC landscape information. Stock exchanges and regulators
SHIFTING SANDS of historical highs. further, says Arpit Mehrotra,
This growth is predominantly managing director, office services,
have been issuing cautions against fraudsters,
unregistered entities, and even advisories on
Returns (%) led by employees Colliers India. high-algo trades. However, they will have to
Real estate Price One- Six- One- Price target Upside returning to offices and Occupancies are The other trigger is deploy newer tools to stay ahead of the curve.
investment trust (~) month month year (~ per share) (%) the expansion of global believed to be in new SEZ rules, which
Brookfield India 252.2 2.7 1.3 -7.3 301 19.5 companies’ operations the 57% to 65% are expected to boost Trading in the balance: Nifty, Bank
in India. With the range in the office demand. Nifty navigate a narrow range
Embassy Office Parks 364.6 3.1 18.9 19.5 397 9.0 increase in transaction Reit portfolios, In December last Both the benchmark National Stock Exchange
Mindspace Business Park 343.8 4.8 11.3 10.2 363 5.6 volumes, rentals also compared to year, the SEZ rules were Nifty50 and the Nifty Bank indices moved in a
stabilised in various 47% to 55% amended, allowing narrow range last week. The Nifty touched a low
Nexus Select Trust 128.6 -0.9 7.0 - 141 9.3 micro-markets. last year developers of IT/ITeS of 21,875 and a high of 22,297 before last closing
S&P BSE Realty 7,254.7 12.7 68.2 136.3 6,887 -5.1 Occupancies have SEZs to designate por- at 22,213. Meanwhile, the Nifty Bank Index
S&P BSE Sensex 73,142.8 2.4 12.1 22.4 80,966 10.7 also been steadily increasing tions of built-up areas as non-SEZ last closed at 46,812 after seeing a swing of
across markets and are believed to space, which is expected to allevi- about 1,000 points. Experts say the market is
Compiled by BS Research Bureau Source: Bloomberg
be in the 57 per cent to 65 per cent ate concerns of rising vacancies struggling to break out on either side due to
distribution per unit (DPU), which brokerage has pointed out that the range in the Reit portfolios, after the removal of tax breaks for a lack of big triggers. Technical analysts say
has witnessed a flat to declining net debt to gross asset value ratio compared to 47 per cent to 55 per new SEZ units in March 2020. traders are required to keep an eye on the
trajectory over the past few is rising slowly, as most Reits cent last year, says Knight Frank. While JM Financial Research 21,900 level for the Nifty. “As long as Nifty
quarters, to reverse going ahead. are in expansion mode. The A key trigger for the sector is the and Nuvama Research have a maintains levels above 21,900, one can
The lower DPUs were on account higher leverage, given increased sharp rise in demand for leasing ‘buy’ rating on the four listed Reits, continue buying the dips,” says Rupak De,
of lower occupancies over the past borrowing and higher interest from GCCs. The second half of what could act as a rerating trigger senior technical analyst at LKP Securities.
few quarters and were brought on rates, is, however, well below the 2023 particularly witnessed the for Reits, according to the latter, is On the upside, the index faces resistance at
by higher exits. regulatory cap of 49 per cent highest GCC leasing activity since a potential interest rate cut over 22,400, he added. As far as the Nifty Bank Index
While not alarming, the for all Reits. 2020, reaching 12.4 msf. the next year. is concerned, the key resistance is at 47,850,
while strong support is seen at 46,000.

Exicom’s IPO power surge:

[ FUND PICK ] EDELWEISS AGGRESSIVE HYBRID FUND Breaking weak listing trends
ONE-YEAR ASCENT: Electric vehicle charging firm Exicom
MFs GO FROM ~40 TRILLION TO ~53 TRILLION Tele-Systems’ ~430 crore initial public offering

MARK-TO-MARKET GAINS Trailblazer in performance (IPO) is likely to break the recent weak listing
trend. If a grey market premium is any
indication, shares of the company are

and asset growth

VS INFLOWS: IT’S A 70-30
The journey of mutual funds
(MFs) from ~40 trillion to nearly
expected to double upon listing. Exicom’s
shares are quoted at ~272 in the grey market
compared to its price band of ~135–142 per
share. Three of the past four IPOs have been
gains were nearly double in the
midcap and smallcap indices.
Edelweiss Aggressive Hybrid Fund,
launched in August 2009, has POTENTIAL, UNLOCKED Fund Category Benchmark
listed at a discount. Juniper Hotels, too, could
slip below its issue price given the lukewarm
26.30

~53 trillion in the past year is While the flows into equity consistently ranked in the top 30 per- Returns in % response to its IPO, said market players.
33.05

mostly driven by mark-to-market schemes have been better compared centile of the aggressive hybrid fund Besides the Exicom IPO, Bharat Highways’
28.89

19.05

19.02

gains in the equity segment and to previous years, debt fund flows took category in the CRISIL Mutual Fund ~2,500 crore infrastructure investment trust
17.25
15.91

14.96
15.43

15.51
15.26

appreciation in the value of debt and a hit after March 2023 due to a change
14.41
Ranking (CMFR) for three consecutive offering also opens for subscription this week.
14.25

14.08
14.13

14.17

13.31
12.75

gold assets. in taxation. Equity schemes raked in quarters through December 2023. Contributed by KHUSHBOO TIWARI
Analysis of ~1.62 trillion in The fund’s month-end assets & SUNDAR SETHURAMAN
data from the inflows in under management increased
Association of OUTSIDE FORCES (~ crore) CY23. In
from ~20 crore in December 2020 to
The past year’s net inflow of ~3.9 trillion ~1,064 crore in December 2023, at an
Mutual Funds in
makes up less than a third of AUM growth
comparison, annualised rate of 274.3 per cent EVENTS THIS WEEK
India shows active debt versus the category’s 15.9 per cent. 1-year 2-year 3-year 5-year 7-year 10-year
that asset Net inflow AUM growth funds Bharat Lahoti, Bhavesh Jain, and Point-to-point returns as of February 22, 2024; returns for one-year are absolute, annualised for rest Date Particulars
growth was registered an Dhawal Dalal have been managing Feb 26  US: New home sales
largely driven outflow of this fund since October 2021, October grown to ~38,480 (14.41 per cent) and to largecap stocks.
2015, and November 2021. ~37,354 (14.07 per cent), respectively. Allocation to largecap stocks
Feb 27  US: FHFA House Price Index,
by the ~46,000 crore.
52,74,001 The fund aims to provide capital A systematic investment plan is a averaged 52.91 per cent, while House Price Purchase Index
appreciation in 39,62,406 Inflows into
growth and current income through a disciplined mode of investment allocation to midcap and smallcap  UK: Nationwide House
the prices of the MFs have
1,23,205 portfolio invested predominantly in offered by mutual funds through stocks averaged 11.97 per cent and Price Index
underlying 11,373 picked up after equities, with a balance in debt and which one can invest a certain amount 4.92 per cent, respectively.
assets. The the pandemic, Feb 28  US-GDP figures,
money market securities. at regular intervals. The equity portfolio was
assets under but the A monthly investment of ~10,000 diversified across 20 sectors. Core PCE Price Index
management aggregate flow Trailing returns for the past 10 years in the fund, Financial services had the highest Feb 29  India: Fiscal deficit figures
have grown by AUM: Assets under management is still only The fund has consistently outper- totalling ~12 lakh, would have grown average allocation of 22.19 per cent,  India: Eight infrastructure
~13 trillion Source: Association of Mutual Funds in India 6.1 per cent formed the benchmark (CRISIL to ~25.76 lakh (14.66 per cent followed by information technology
Hybrid 35+65 — Aggressive Index) and annualised return), compared to (8.49 per cent), oil, gas and
industries index
during the of the total  India: GVP and GDP figures
February 2023–January 2024 period to household savings, according to its peers (funds ranked under the ~24.26 lakh (13.54 per cent) in the consumable fuels (6.97 per cent), fast-
aggressive hybrid fund category in benchmark as of February 22, 2024. moving consumer goods (6.55 per  US: Jobless claims
~52.7 trillion. The net inflows in this data from the Reserve Bank of India.
December 2023 CMFR) in all the cent), and healthcare (4.63 per cent). Mar 1  India: HSBC India
period came in at ~3.86 trillion. In 2022–23, ~1.8 trillion in trailing periods under analysis. Portfolio analysis The fund’s debt portfolio primarily
The equities market has rallied household savings went into MFs. To put this in perspective, an Over the past three years, the fund’s consisted of sovereign securities.
Manufacturing PMI
sharply since 2023. The benchmark Banks received ~10.3 trillion. Life investment of ~10,000 in the fund on asset mix has comprised an average Allocation to sovereign paper  US: S&P Global
indices National Stock Exchange insurance and small savings schemes February 21, 2014, would have grown allocation of 69.79 per cent to equity averaged 7.59 per cent. Exposure to Manufacturing PMI,
Nifty50 and S&P BSE Sensex had were also ahead of MFs, with inflows to ~40,377 on February 22, 2024, at an and 30.21 per cent to debt. AAA/A1+-rated securities averaged ISM Manufacturing PMI
registered close to 20 per cent gains in of ~5.3 trillion and ~8.6 trillion, annualised rate of 14.96 per cent. In The equity portfolio was diversi- 3.27 per cent, while the fund had no  UK: S&P Global
the calendar year 2023 (CY23). The respectively. ABHISHEK KUMAR contrast, the same investment in the fied across market capitalisations, allocation to sub-AAA-rated securities. Manufacturing PMI
category and benchmark would have with a predominant exposure CRISIL RESEARCH
 China: Manufacturing PMI
and Non-Manufacturing PMI
Source: Bloomberg

‘March Fed pivot ruled out, May rate cut less likely’ Compiled by BS Research Bureau

The tight labour market has dashed expectations of interest rate cuts by the
US Federal Reserve (Fed) in March as well as May. The US central bank will start
an election year. Indian equity markets
exhibit a substantial 96 per cent
a positive outlook on Indian markets,
despite adopting a conservative stance TOP BULK DEALS
reducing rates in June, says VIKRAM SAHU, global head of equity research at correlation with US equity markets, on earnings.
BofA Securities. In an interview with Samie Modak, Sahu says the US elections suggesting a potential upside. India’s sturdy macroeconomics, Date Scrip Client Price (~)
and Fed pivot will benefit emerging markets (EMs) this year. Edited excerpts: resilient domestic flows, and the Feb 20 Whirlpool of Whirlpool 1,277.0
The US and Indian markets have potential resurgence of foreign portfolio India Mauritius (S)
What headwinds and tailwinds are Street expectations of rate cuts by the rallied sharply over the past year. investor flows into EMs following a
currently impacting global equities? Fed have been undergoing a shift. Will this cap the potential upside? potential Fed pivot contribute to his Feb 20 Whirlpool of SBI Mutual Fund (B) 1,277.0
Our economics team anticipates a mild What implications will it have on We believe that the fundamentals for optimism. We recommend exercising India
deceleration in global growth this year, global equities and foreign flows? both markets remain robust, and we do caution with midcap and Feb 22 Eureka Forbes Lunolux (S) 506.1
followed by a gradual recovery in 2025. We anticipate that core services inflation not identify any major risks to earnings smallcap stocks, where
We believe a hard landing in the US is could persist due to a tight labour growth. However, given the valuations, valuations are stretched. Feb 21 Devyani Yum Restaurants 164.1
unlikely as inflation continues to ease, market, and a Fed pivot in March is now generating alpha would depend on stock International India (S)
and consumers remain resilient. firmly ruled out. The likelihood of a rate selection, especially in the US, where How is artificial Feb 20 Tourism Finance Aditya Kumar 209.8
We argue that major cut in May has also market breadth has been narrow. intelligence (AI) Corp of India Halwasiya (B)
central banks, including the diminished significantly. We In the Indian markets, we still being utilised as an
Fed and the European Central expect rate cuts commencing identify pockets of opportunities within investment theme? Feb 21 Poly Medicure Lighthouse India III 1,550.1
Bank, could commence in June, with three cuts in largecaps, where valuations are We foresee AI Equity Investors (S)
cutting policy rates in the 25-basis-point increments reasonable (financials), there is a positive propelling the world Feb 21 Devyani Nippon India 164.1
second half of the calendar throughout this year. earnings outlook from the ongoing economy by $16
International Mutual Fund (B)
year 2024. Concerning flows, there is multi-year upcycle (industrials), and trillion by 2030, with
VIKRAM SAHU Feb 20 Jindal SAW Eriska Investment 521.0
A Fed pivot and a resulting a clear negative correlation in sectors that have the potential to the global AI
Global Head-Equity
easier monetary policy in Research,
between Fed rates and rebound (staples based on potential market, covering Fund (S)
2024 could bolster equity BofA Securities equity flows, particularly rural recovery). software, Feb 22 Eureka Forbes Goldman Sachs 505.0
markets. Moreover, pronounced in EMs. hardware, and
economies representing over 60 per cent For instance, EMs have experienced Are India’s expensive valuations services,
India Equity
of the global gross domestic product cumulative outflows of $158 billion a deterrent to investors? potentially Portfolio (B)
have national elections this year. since the initiation of the Fed hike While Indian markets are indeed not reaching $900 Feb 23 Olectra Greentech Ujwal Kumar 2,096.0
Incumbent government policies are cycle in March 2022 and may witness inexpensive, the valuations of largecap billion by 2026. Pagariya (S)
likely to be pro-growth, which is inflows once the Fed pivots. stocks are still a considerable distance We observe ample
positive for markets. from being overstretched. The funding available for Feb 20 Whirlpool of Aditya Birla Sunlife 1,277.0
We remain vigilant regarding three Do you view US elections as a benchmark National Stock Exchange generative AI, with private India Mutual Fund (B)
risks: ongoing geopolitical conflicts, the risk to global equities, or will Nifty is trading at 21.5x one-year forward investments on the rise Feb 20 Whirlpool of Société Générale 1,277.0
potential re-acceleration of inflation in they enhance performance? earnings, which is 13 per cent higher since 2020, and governments India ODI (B)
the US, and rising fiscal deficits globally, Regarding US equities, markets have, on than its long-term average of 19x. globally aiming to foster
particularly in the US. average, delivered 12 per cent returns in Our India equity strategist maintains AI development. (B) Buy (S) Sell Source: Exchanges
 MUMBAI | MONDAY, 26 FEBRUARY 2024 PERSONAL FINANCE 11 <

Does your loan fulfil Assess tax residency status

the AA criteria?
always bad. A good loan con- creation causes the borrower
tributes to asset acquisition, to pause and rethink and does
after extended stay abroad
like the purchase of a house, not provide the same pleas-
or enhances earning poten- ure psychologically as instant Non-residents sion overseas.

tial, as happens with a busi- gratification until the loan is must furnish a tax KEY ASPECTS OF > Double Taxation Avoidance
Agreement (DTAA) is a tax
Resident on temporary
ness or an education loan. fully paid off and the secured
A good loan must fulfil the asset is released. residency certificate DTAA EXPLAINED treaty signed between
foreign assignment
Many multinationals in India send
countries to help taxpayers
AA (double-A) criteria: it The prevailing sentiment employees overseas, making them
should ‘add’ to assets or suggests that the indiscrimi- and fill Form 10F to avoid paying double taxes on
liable for taxes in that country. “Before
the same income
income and should be ‘appro- nate use of easy loans by claim DTAA benefits filing an income tax return (ITR) in
TRUTH BE TOLD priate’. Appropriateness is today’s youth may end badly
best judged by the percentage both for them and for lenders.
> It becomes applicable when India, residents must submit Form 67.
They can then claim Foreign Tax
an individual is a resident of
HARSH ROONGTA of future income pre-empted My view is that India’s BINDISHA SARANG one nation but earns income Credit (FTC) for taxes paid abroad,”
for paying back the loan. If all younger generation is wiser in another says Rishab.

I was catching up with
Arihant, an ex-colleague and
an IIT-IIM (Indian Institute
of Technology-Indian
Institute of Management)
graduate, who now runs a
successful company. He
described his first brush with
financial leverage in the early
2000s when he had just
begun working. Despite earn-
ing a good salary, Arihant’s
lifestyle expenses surpassed
his earnings. He soon ran up
a credit card bill amounting
to three months’ salary. He
had to seek financial assis-
tance from his parents to
clear off this debt. After this
experience, Arihant curtailed
his expenses and soon repaid
his parents.
Arihant’s story illustrates
human beings’ evolutionary
bias for instant gratification.
When our ancestors lived in
the jungle, they gratefully
consumed any meat that was
lying around. That makes
humans different from hiber-
nating animals who have an
instinct to hoard food for at
least a season.
With the advent of civili-
sation, laws were enacted.
Lenders who provide
resources for instant gratifi-
cation can enforce contracts
and recover the resources
(mostly money) with interest,
underscoring the need for
prudent borrowing.
Borrowing entails pledg-
ing future income to pay for
today’s gratification. It is not
T
repayments amount to than its preceding genera- he Income-Tax Appellate
around one-third of income, tions. A vast majority of them Tribunal (ITAT), Delhi bench, > DTAA provisions can apply Avoiding double taxation
that is considered fine. use loans sensibly, and the recently ruled in favour of Devi to income from services To shield NRIs from double taxation,
A home loan (which adds others, like my friend Dayal, who had been deputed by his provided and salary received India has signed a Double Tax
to assets) that passes the Arihant, will get back to the employers to work on a project in in India; interest earned on Avoidance Agreement (DTAA) with
appropriateness test can be path of prudence soon. Austria. The ITAT ruled that salary fixed deposits and savings over 80 countries. “DTAA offers pro-
considered a good loan. A Truth be told, loans serve and allowances earned abroad by a bank accounts held in India; tection to those living abroad and hav-
vehicle loan does not add to as the lubricant that propels ‘non-resident’ for services rendered income from house property ing an income in India. DTAA may
assets but enables one to earn the wheels of civilisation for- overseas are not taxable in India. The in India; and capital gains cover all types of income or only a few
an income. It may be consid- ward faster. The home loan employer disbursed both the salary specific ones. Both the rules and the
from the transfer of assets
ered a good loan (given the sector’s growth over the past and compensatory allowance over- tax rates differ from one country to
in India
abysmal state of public trans- five decades has demon- seas, with the allowance accessible another,” says Rajarshi Dasgupta,
portation in most cities) pro- strated the transformative through a credit card valid only > If an NRI makes use of executive director, Aquilaw.
vided it passes the appropri- impact that responsible bor- in Austria. DTAA provisions, then tax Non-residents eligible for DTAA
ateness test. rowing can have on a nation’s “Since he had failed to furnish a is payable at a lower can claim its advantages only with a
Experts suggest reading progress. Homeownership Tax Residency Certificate (TRC) from rate on the incomes Tax Residency Certificate (TRC) from
the fine print fosters a powerful Austria, the tax authorities deemed mentioned above the tax authority of the country in
before signing a A good loan must sense of stability the allowances taxable in India. which they reside.
loan agreement. fulfil the AA and social cohe- However, the ITAT ruled in the tax- “Non-residents are required to fur-
My extensive criteria: it should siveness. Most payer’s favour, stating that since the nish some additional information in
experience tells ‘add’ to assets or home loan bor- services were rendered outside India, has been a resident of India for at least taxed only on their income that Form 10F electronically,” says Suresh
me most people income and should rowers have steady the salary was not taxable in India,” two out of the 10 past years, and has accrues or arises in India. Says S R Surana, founder, RSM India. Form 10F
would not sign be ‘appropriate’, incomes and are says Varun Chablani, an international stayed in India for at least 730 days in Patnaik, partner (head-taxation), Cyril is a declaration that non-residents
an agreement meaning EMI less likely to go out tax lawyer. the seven immediately preceding Amarchand Mangaldas: “An NRI’s sal- need to file in India to provide neces-
after reading it, shouldn’t exceed and riot on the Many taxpayers find the tax res- years. If either of the above conditions ary is taxable in India if the services sary details to the Indian Income-Tax
given their one- one-third of streets for any idency rules perplexing. “Under is not met, the person’s residential are rendered or performed in India (I-T) authorities, ensuring that they
sided nature income cause. Indian tax laws, tax incidence arises status will be that of an RNOR. since it is considered income earned are eligible for DTAA benefits.
(despite which Nevertheless, as based on residential status, which in “RNORs and NRIs are taxed alike, in India. If salary is paid for services
the lenders have trouble with any powerful instru- turn depends on the number of days with their foreign income being rendered outside India, it is assumed Tax savings for NRIs
recovering their loans from ment, loans can create havoc spent in India,” says Vivek Jalan, part- exempt from Indian taxes unless it is to have been earned outside India.” NRIs are entitled to certain exemp-
some borrowers). and destroy lives if used ner, Tax Connect Advisory. derived from a business controlled While considering residency for tions and deductions under the old
Here are my suggestions indiscriminately and for the from India or a profession set up in individuals who have spent more than tax regime, but not under the new
for ensuring a fair deal. One, wrong ends (think of the 2008 Who is a resident? India,” says Ankit Jain, partner, Ved 60 days outside India, most of the tax one. “By investing in specified instru-
take a floating rate loan as crisis in the US). I am confi- A person is a tax resident of India if Jain & Associates. disputes arise over the nature of work ments like NRE (Non-Resident
Reserve Bank of India (RBI) dent that the innate good he is physically present in the country being undertaken. External) accounts, and select mutual
regulations allow them to be sense that Indians possess in for 182 days in a financial year or if he Definition of NRI for tax purposes “While the tax authorities allege funds, NRIs can avail of tax benefits.
prepaid or shifted without plenty will steer them (and spends 60 days during the relevant If you don’t qualify as a resident or as that the person has been outside India They can also explore deductions
incurring any prepayment the nation) towards a positive period and 365 days in the four imme- an RNOR, your status is that of a non- not for ‘employment’ but as an inves- under Section 80C and other sections
charges. Two, borrow from a outcome. diately preceding financial years. resident. “Non-residents are liable for tor or promoter, the individual claims of the I-T Act,” says Jain.
bank and not a Non-Banking “Once an individual qualifies as a taxes in India only on income that he is, in fact, an employee,” says Finally, experts say NRIs’ salaries
Financial Company (NBFC) The writer heads Fee-Only resident, the next step is to determine received, accrued, or deemed to be Kishore Kunal, an advocate. should be structured in such a way
as the former are subject to Investment Advisors LLP, a Sebi- if he is a Resident and Ordinarily received or accrued in India,” says A recent judgement states that that double taxation is avoided. “If
tighter regulations by the RBI. registered investment advisor; Resident (ROR) or Resident but Not Rishab J, advocate, Shivadass & “employment” lacks a technical double taxation is unavoidable, then
And three, take a secured X (formerly Twitter): Ordinarily Resident (RNOR),” says Shivadass Law Chambers. definition, implying that employ- maintain proper records to ensure
loan. The very act of security @harshroongta Megha Jain, tax expert, Cleartax. Residents are taxed in India on ment abroad includes self-employ- NRIs get tax credit in India,”
A person qualifies as an ROR if he their global income, while NRIs are ment or starting a business or profes- says Patnaik.

Bank of India-Malvan Branch

Tal- Malvan, Dist- Sindhudurg.
Phone: 02365- 253899,
Email: Malvan.Ratnagiri@bankoindia.co.in
POSSESSION NOTICE
(For immovable property)
Ref. No.MVL/ ADV/2023-24/117
[Rule 8 (1)]

Date: 23.02.2024
Whereas,
The undersigned being the Authorised Oicer of Bank of India under the
Securiisaion and Reconstrucion of Financial Asset and Enforcement of
Security Interest Act, 2002 and in exercise of powers conferred under secion
13(12) read with rule 3 of the Security Interest (Enforcement) Rules, 2002
issued demand noice dated: 16.12.2023 on calling upon the Borrower/
Mortgager Mrs. Rakhi Mahesh Dholam to repay the amount menioned in
the noices aggregaing Rs.4,39,517/- (Rupees Four Lac Thirty Nine Thousand
Five Hundred Seventeen) plus further interest & other charges thereon from
29.05.2023 within 60 days from the date of receipt of said noice.
The borrower having failed to repay the amount, noice is hereby given
to the borrower and the public in general that the undersigned has taken
Symbolic Possession of the property described herein below under Secion
13(4) of the said Act read with rule 8 of the Security Interest Enforcement
rules, 2002 on the 23rd day of February 2024.
The borrower secured debtor in paricular and the public in general
is hereby cauioned not to deal with the property and any dealings with
property will be subject to the charge of the Bank of India Malvan Branch
for an amount of Rs.4,39,517/- (Rupees Four Lac Thirty Nine Thousand Five
Hundred Seventeen) plus further interest & other charges thereon from
29.05.2023 within 60 days from the date of receipt of said noice.
The borrower’s atenion is invited to the provisions of sub- secion (8) of
secion 13 of the SARFAESI Act, in respect of ime available, to redeem the
secured assets.
DESCRIPTION OF THE IMMOVABLE PROPERTY
EQM of all that part and parcel of the Flat No. B-15, area- 350 Sq.ft. (32.53
Sq.Mtrs.) Second Floor, B wing, Building Sankalp-B, Situated at Survey No.
803B (772 A1) Hissa No. 1/4+6/1 City Survey No. 1666, At- Malvan, Taluka-
Malvan, District- Sindhudurg, in the name of Mrs. Rakhi Mahesh Dholam
(Borrower-Mortgager).
Boundaries;
East: ‘B’ Wing open space and compound wall West: ‘B’ Wing stair case
South: Front side open space
Date: 23.02.2024
North: Flat No. 14
Place: Malvan Sd/-
Authorised Oicer Bank of India
E-TENDER NOTICE
Chandrapur Super Thermal Power Station MAHAGENCO,
invites Proposals from reputed and experienced Companies
to Participate in the Competitive bidding Process to following
Tenders.
S. N. Tender NO (Rfx No) / Descricption / Estimated Cost in Rs.
1 3000046115 (Refloated) / Supply & commissioning of
advanced Microprocessor based Fast Bus Transfer Panels
for Stage-III, CSTPS, Chandrapur / Rs.19683000/-
2 3000046105 / Work of inspection & rectification of safety
measures by providing Standard Operating Board, Road
barrier with reflective sheet and allied work at Railway
Siding & Coal Handling Plant-B at CSTPS, Chandrapur /
Rs.2037010/-
3 3000046063 / Work of maintenance of Desert Air Coolers
installed at Unit-8 & 9 including CHP-D, CSTPS, Chandrapur
/ Rs.430140.20
4 3000046137 (Refloated) / Supply of Fluid Coupling for
85 TPH Clinker Grinder Gear Box at Unit-8 & 9 CSTPS,
Chandrapur / Rs.239796/-
MANGALAM INDUSTRIAL FINANCE LIMITED
Corporate Identification Number: L65993WB1983PLC035815
Mangalam Industrial Finance Limited (“Company” or “Issuer”) was incorporated at Calcutta, on February 08, 1983 as a public limited company, under
the Companies Act, 1956 and a Certificate of Incorporation was issued by the Registrar of Companies, West Bengal at Calcutta. Thereafter our
Company obtained a Certificate of Commencement of Business on March 05, 1983. Our Registered Office has been shifted from MMS Chambers, 4A,
Council House Street, 1st Floor, Room No: D1, Kolkata – 700 001, West Bengal to the current address on October 06, 2022. Our Company is
registered under section 45-IA of The Reserve Bank of India Act, 1934 to commence/carry on the business of a Non-Banking Financial Institution. Our
Company is registered with the Reserve Bank of India (“RBI”) as Non-Systemically Important Non-Deposit taking Non-Banking Finance Companies
(NSI-ND-NBFC), Investment and Credit Company (“ICC”). The registration number is B.05.02961 vide the Certificate of Registration dated 21.08.2001.
For details of changes in the name and registered office of our Company, refer chapter titled “General Information’ on page 34 of the Letter of Offer.
Registered Office: Old Nimta Road, Nandan Nagar, Belghoria, Kolkata, West Bengal –700 083; Telephone No. +91 7203948909;
Fax; N.A.; E-mail id: compliance@miflindia.com
Corporate Office: Hall No.-1, M R Icon, Next to Milestone, Vasna, Bhayli Road, Vadodara-391410, Gujarat; Telephone No: +91 7203948909
Contact Person: Ms Kashish Purohit; Company Secretary and Compliance Officer
E-mail: compliance@miflindia.com; Website: www.miflindia.com
OUR PROMOTERS: VETTUKALLEL AVIRACHAN SOJAN, VENKATA RAMANA REVURU, YATIN SANJAY GUPTE,
WARDWIZARD SOLUTIONS INDIA PRIVATE LIMITED AND GARUDA MART INDIA PRIVATE LIMITED
ISSUE OF UP TO 12,38,92,721 FULLY PAID-UP EQUITY SHARES OF FACE VALUE OF ` 1 EACH OF OUR COMPANY (THE “RIGHTS EQUITY
SHARES”) FOR CASH AT A PRICE OF ` 3.95 ( RUPEES THREE AND PAISE NINETY FIVE ONLY) PER RIGHTS EQUITY SHARE AGGREGATING
UP TO ` 4893.76 LAKHS ON A RIGHTS BASIS TO THE ELIGIBLE EQUITY SHAREHOLDERS OF OUR COMPANY IN THE RATIO OF 21 (TWENTY
ONE) RIGHTS EQUITY SHARES FOR EVERY 163 (ONE HUNDRED SIXTY THREE) FULLY PAID-UP EQUITY SHARES HELD BY THE ELIGIBLE
EQUITY SHAREHOLDERS ON THE RECORD DATE, THAT IS ON MONDAY, JANUARY 29, 2024 (“RECORD DATE”) (THE “ISSUE”). FOR FURTHER
DETAILS, SEE “TERMS OF THE ISSUE” ON PAGE 150 OF THE LETTER OF OFFER.
* Assuming full subscription
NOTICE TO ELIGIBLE EQUITY SHAREHOLDERS OF THE COMPANY
RIGHTS ISSUE OPEN
Last date for receipt of Rights Issue Application forms is
extended upto Tuesday, March 12, 2024
Simple, Safe, Smart way of Applications Supported by Blocked Amount (ASBA) is a better way of applying
ASBA* Application – Make use of it!!! to issues by simply blocking the fund in the bank account. For details, check
section on ASBA below.
PROCESS OF MAKING AN APPLICATION IN THE ISSUE: In accordance with Regulation 76 of the SEBI ICDR Regulations, SEBI Rights Issue
Circulars and ASBA Circulars, all investors desiring to make an application in this issue are mandatorily required to use the ASBA process. Investors
should carefully read the provisions applicable to such applications before making their application through ASBA. For details of procedure for
application by the resident eligible shareholders holding equity shares in physical form as on record date, please see “Making of an application by
eligible equity shareholders holding equity shares in physical form” on page 155 of the Letter of Offer.
Kindly note that Non-Resident Investors can apply in this Issue using the ASBA mode only.
Investors should carefully read the provisions applicable to such applications before making their application through ASBA. For details of procedure
for application by the resident eligible shareholders holding equity shares in physical form as on record date, please see “Making of an application by
eligible equity shareholders holding equity shares in physical form” on page 155 of the Letter of Offer.
LAST DATE FOR APPLICATION: This is to inform the Eligible shareholders of the Company that the date of Closure of the Rights issue which opened
on Monday, February 12, 2024 and scheduled to close on Monday, February 26, 2024 has now extended by the Company from Monday, February 26,
2024 to Tuesday, March 12, 2024 in order to provide opportunity to shareholders to exercise the rights in the Rights Issue.
Accordingly, Last date of submission of the duly filled Rights Issue Application forms is extended upto Tuesday, March 12, 2024 (i.e. Issue Closing Date)
PLEASE NOTE THAT THE ELIGIBLE EQUITY SHAREHOLDERS WHO HOLD EQUITY SHARES IN PHYSICAL FORM AS ON RECORD DATE
AND WHO HAVE NOT FURNISHED THE DETAILS OF THEIR RESPECTIVE DEMAT ACCOUNTS TO THE REGISTRAR OF OUR COMPANY
ATLEAST TWO WORKING DAYS PRIOR TO THE ISSUE CLOSING DATE I.E. MARCH 06, 2024, SHALL NOT BE ELIGIBLE TO MAKE AN
APPLICATION FOR RIGHTS EQUITY SHARES AGAINST THEIR RIGHTS ENTITLEMENTS WITH RESPECT TO THE EQUITY SHARES HELD IN
PHYSICAL FORM.
Allotment of rights equity shares in dematerialised form: Please note that the rights equity shares applied for in this issue can be allotted only in
dematerialised form and to the same depository account in which our equity shares are held by such investor on the record date.
If the Application Form is not submitted with an SCSB, uploaded with the Stock Exchange and the Application Money is not blocked with the SCSB, on
or before the Issue Closing Date i.e. March 12, 2024 or such date as may be extended by our Board or any committee thereof, the invitation to offer
contained in this Letter of Offer shall be deemed to have been declined and our Board or any committee thereof shall be at liberty to dispose of the
Equity Shares hereby offered, as set out in “Terms of the Issue - Basis of Allotment” on page 170 of the Letter of Offer.
ELIGIBLE EQUITY SHAREHOLDERS OF THE COMPANY WHO ARE ENTITLED TO APPLY FOR THE RIGHTS ISSUE ARE REQUESTED TO
TAKE NOTE OF THE ISSUE CLOSURE DATE AS TUESDAY, MARCH 12, 2024. ACCORDINGLY, THERE IS NO CHANGE IN THE LETTER OF
OFFER, ABRIDGED LETTER OF OFFER, STATUTORY ADVERTISEMENT, ENTITLEMENT LETTER AND APPLICATION FORM EXCEPT OF
MODIFICATION IN THE ISSUE CLOSING DATE; RESULTANT CHANGE IN THE INDICATIVE TIMELINE OF POST ISSUE ACTIVITIES ON ACCOUNT
OF EXTENSION OF ISSUE CLOSING DATE.

5 3000046140 (Refloated) / Procurement of LT Switchgear
Spares for EM-I CSTPS, Chandrapur / Rs.1492141.18
6 3000046157 (Refloated) / Procurement of Generator
Instrumentation Cabinet (GIC) Liquid Level Detectors (LLD)
for C&I-III, Unit-8 & 9, CSTPS, Chandrapur / Rs.1133800/-
7 3000046153 / Work of welding, cutting & fabrication /
repairing of support structure of acidic / alkaline pipeline
installed at WTP-II, ODP-II, CSTPS, Chandrapur on as &
when required basis / Rs.1372372.66
Above floated tender published in MAHAGENCO online Portal.
For the detailed Tender document, interested bidders should
visit SRM Website https://eprocurement.mahagenco.in for
(Sr. No. 01 to 07)
For any query Contact No.8554991818.
Sd/-
Place: Vadodara
CHIEF ENGINEER (O&M) Date: February 26, 2024
CSTPS, CHANDRAPUR.
Registrar to the Issue Company Secretary and Compliance Officer
Purva Sharegistry (India) Private Limited Mangalam Industrial Finance Limited
Unit No. 9, Ground Floor, Shiv Shakti Industrial Estate, J.R. Boricha Hall No.-1, M R Icon, Next to Milestone, Vasna, Bhayli Road,
Marg, Lower Parel (East), Mumbai, 400011, Maharashtra Vadodara-391410, Gujarat; Telephone No: +91 7203948909
Contact Details: +91-22-4961 4132/ +91-22-3199 8810 Email: compliance@miflindia.com;
Email: newissue@purvashare.com; Website: www.miflindia.com;
Website: www.purvashare.com; Contact Person: Ms Kashish Purohit
Contact Person: Ms. Deepali Dhuri Company Secretary and Compliance Officer;
SEBI Registration Number: INR000001112
For Mangalam Industrial Finance Limited
On behalf of Board of Directors
Sd/-
KASHISH PUROHIT
COMPANY SECRETARY AND COMPLIANCE OFFICER
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MUMBAI | MONDAY, 26 FEBRUARY 2024 1
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MUMBAI | MONDAY, 26 FEBRUARY 2024 13

TRIGYN TECHNOLOGIES LTD.

CIN - L72200MH1986PLC039341
Regd. Office: 27, SDF I, SEEPZ, Andheri (East), Mumbai – 400096
Tel: +91 22 6140 0909 Fax: +91 22 2829 1418 Website: www.trigyn.com Email : ro@trigyn.com
RESULTS OF POSTAL BALLOT
In terms of the postal ballot notice dated January 18, 2024 pursuant to Section 110 of the Companies
Act, 2013 (Act) read with Rule 20 & 22 of the Companies (Management and Administration) Rules, as
amended from time to time including any statutory modification or re-enactment thereof and Regulation
44 of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations,
2015, read with rules made thereunder and on the basis of the report of Scrutinizer submitted to the
Chairman of the Company, the results of the Postal Ballot as declared at the Registered Office of the
Company on February 23, 2024 is notified as under:

Resolution Type of Resolution Particulars % of Vote

Number In favour Against
1. Special Resolution To consider the appointment of Mr. 99.973 0.027
Ishwar Halalli as an Independent Director
of the Company.
2. Special Resolution To consider the appointment of Mr. Syed 99.959 0.041
Sultan Ahmed as an Independent
Director of the Company.

3. Special Resolution To consider the appointment of Mr. Vijay 99.961 0.039

Mallya as an Independent Director of
the Company.
4. Ordinary Resolution To consider the appointment of Mr. Dilip 93.527 6.473
Hanumara as Strategic Advisor to the
Management
The above Resolutions have therefore been passed by the members of the Company with requisite
majority.
By order of the Board
For Trigyn Technologies Limited
Sd/-
Place: Mumbai Mukesh tank
Date: February 23, 2024. Company Secretary

NOTICE

NOTICE is hereby given that DSP Trustee Private Limited, the Trustee to DSP Mutual Fund (‘Fund’) has approved the distribution under Income Distribution cum Capital
Withdrawal (‘IDCW’) Option(s) of the below mentioned scheme(s) of the Fund.
Record Date*: February 28, 2024
Quantum of IDCW Face Value Net Asset Value (‘NAV’) as on
Name of Scheme(s) Plan(s) Option(s)
(` per Unit)# (`per Unit) February 22, 2024 (`per unit)
DSP Equity & Bond Fund Regular IDCW 0.200 10.00 27.368
DSP Equity & Bond Fund Direct IDCW 0.200 10.00 62.212
# The per unit rate is same for individual and other category of investors. *If in case the Record Date falls on a non-Business Day, the immediately following Business Day
shall be the Record Date. Distribution of the above IDCW is subject to the availability and adequacy of distributable surplus.Pursuant to payment of IDCW, the NAV of
the IDCW Option(s) of the aforesaid Scheme(s) of the Fund would fall to the extent of payout and statutory levy, if any. IDCW amount will be paid to all those Unit
Holders/Beneficial Owners whose names appear in the records of the Registrar and Transfer Agent, Computer Age Management Services Limited/statement of Beneficiary
Owners maintained by the Depositories under the IDCW Option(s) of the aforesaid Scheme(s) as on the Record Date. The Payout shall be subject to tax deducted at source
(TDS) as applicable.
Unit holders are advised to update change of address / bank details, if any, with depository participant(s) in advance of the Record Date.
Any queries/clarifications in this regard may be addressed to: DSP ASSET MANAGERS PRIVATE LIMITED CIN: U65990MH2021PTC362316, Investment Manager for
DSP Mutual Fund (‘Fund’), Mafatlal Centre, 10th Floor, Nariman Point, Mumbai 400021, Tel. No.: 91-22-66578000, Fax No.: 91-22 66578181, Toll Free No: 1800 200 4499
Website: www.dspim.com
Unit holders are requested to update their PAN, KYC, email address, mobile number, nominee details with AMC and are also advised to link their PAN with Aadhaar Number.
Further, Unit holders can view the Investor Charter available on website of the Fund as well as check for any unclaimed redemptions or Income Distribution cum Capital
Withdrawal (‘IDCW’) payments.
Place: Mumbai
Date: February 25, 2024
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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MUMBAI | MONDAY, 26 FEBRUARY 2024 1

efJeoYe& JeÀesJeÀCe ûeeceerCe yeBJeÀ

Vidharbha Konkan Gramin Bank
Yeejle mejJeÀej , yeBJeÀ Dee@HeÀ Fbef[³ee DeeefCe cenejeä^ µeemevee®ee GHe¬eÀce
Govt. of India, Bank of India & Govt. of Maharashtra Undertaking
>
MUMBAI | MONDAY, 26 FEBRUARY 2024
PUBLIC NOTICE
This is to inform to the general public that my client Mr. Suresh
Ramprasad Saraf & Mrs. Alka Suresh Saraf, are the owners of the
flat mentioned herein below. Wherein Mrs. Alka Suresh Saraf expired
and her share is transferred to her son Mr. Ankit Suresh Saraf.
Any person or persons claiming any right of any nature whatsoever
over the said unit by way of sale, mortgage, charge, lien, gift, trust, or
otherwise in any manner whatsoever are hereby required to make the
same known in writing to the undersigned with the documentary evidence
in original in support thereof at the address mentioned below within 15
days from the publication of this notice hereof otherwise the claim, if
any, will be considered as waived, and it will be presumed that the
property is free of any charge/claim/encumbrance.
Schedule
Flat No. 505, “D” Wing, being on the 5 th floor, admeasuring 772.56 sq.
ft. (built up area), in the building known as “Emerald Apratment CHSL”,
situated at Opp. Sona Udyog, Parsi Panchayat Road, Andheri (East),
Mumbai-400069, on land bearing Survey No. 50/3(pt), 46/9, 43/1(pt),
48/7, CTS No. 185 & 185/1 to 6 of Village – Mogra, Taluka – Andheri,
District – Mumbai Suburban.
Advocate Renuka M Nair,
Shop No.05, Bldg.No.16, Sonam Classic,
Phase XI, New Golden Nest,
Bhayander (E), Thane
TVS MOTOR COMPANY LIMITED
Registered Oice: “Chaitanya” No.12 Khader Nawaz Khan Road Nungambakkam
Chennai-600006 CIN: L35921TN1992PLC022845 Website: tvsmotor.com Email:
contact us @tvsmotor.com Ph: 044 28332115
Notice of loss of Share Certiicates
NOTICE is hereby given that the following share certiicate(s) issued by the
company are stated to have been lost or misplaced or stolen and the registered
holders / the legal heirs of the registered holders thereof have applied to the
company for issue of duplicate share certiicate(s)
Folio no. Share cert.
nos.
No. of shares Dis�nc�ve nos. Name of registered holder
5676 1000 5416401-5417400
P12010226289 5675 500 5415901-5416400 PRATHIMA JANAKIRAM
16610 1000 240206061-240206560
16611 500 240206561-240207560
The public are hereby warned against purchasing or dealing in any way, with the
above share certiicates. Any person(s) who has/have any claim(s) in respect of
the said share certiicates should lodge such claim(s) with the company at its
registered oice at the address given above within 15 days of publication of this
notice, after which no claim will be entertained and the company will proceed to
issue duplicate share certiicates.
For TVS MOTOR Company Limited
Place: Chennai K S Srinivasan
Date: 26-Feb-2024 Company Secretary
Public Notice in Form XIII of MOFA (Rule 11(9) (e))
District Deputy Registrar, Co-operative Societies, Mumbai City (3)
Competent Authority,
U/s 5A of the Maharashtra Ownership Flats Act, 1963.
Mhada Building, Ground Floor, Room No. 69, Bandra (E), Mumbai - 400051.
No.DDR-3/Mum./ Deemed Conveyance/Notice/633/2024 Date: - 23/02/2024
Application u/s 11 of Maharashtra Ownership Flats
(Regulation of the Promotion of construction, Sale, Management and Transfer) Act, 1963
Public Notice
Application No. 27 of 2024
Pearl Palace Co-op. Hsg. Soc. Ltd., Versova, J. P. Road, Seven Bungalows, Andheri
(West), Mumbai- 400 061. ....Applicant/s Versus 1) Smt Kasturi Raghava Shetty,
2) Shivanand Raghava Shetty 3) Dr. Premanand Raghava Shetty 4) Hemanand
Raghava Shetty 5) Sacchidanand Raghava Shetty (Being the heirs and legal
representive of Late Raghava Shetty) (as Land Owner/Promoter) Having their
address at Flat No. 205, Gold Crown,Picnic Cottage, Versova, Andheri (West), Mumbai-
400 061. 6) M/S. Kuber Developers (Being the Developers/Builder/Promoter,
Mahendra Arora), 701, Hari Om Aparments. Rajiv Gandhi Engineering College Road,
Juhu Versova Link Road, Andheri (West), Mumbai- 400 061. And Shop No. 4, Varsha
Apartments, Raheja Complex, 7 Bungalows, Andheri (West), Mumbai- 400061. ....
Opponents and those, whose interests have been vested in the said property may
submit their say at the time of hearing at the venue mentioned above. Failure to submit
any say shall he presumed that nobody has any objection to this regard and further
action will be taken accordingly.
Description of the Property, :-
Claimed Area
Unilateral deed of conveyance of said Property in respect of all that piece and parcel of
plot of land or ground bearing Plot No.60 admeasuring 957.80 sq mtrs (including area
admeasuring 108.06 sq mtrs as Road Setback area) and bearing Survey No. 95 (pt)
and corresponding CTS N o. 1301/2 (now bearing CTS NO. 1301/2/A and 1301/2/B)
of Village Versova Taluka Andheri in the Registration Disctrict and Sub -District of
Bandra, Mumbai Suburban situate, lying and bearing at Versova, J.P. Road, Seven
Bungalows, Andheri (West), Mumbai- 400 061 in favour of the Applicant Society.
The hearing is ixed on 11/03/2024 at 3.00 p.m.
Sd/-
(Rajendra Veer)
District Deputy Registrar,
Co-operative Societies, Mumbai City (3)
Seal Competent Authority,
U/s 5A of the MOFA, 1963.
Public Notice in Form XIII of MOFA (Rule 11(9) (e))
District Deputy Registrar, Co-operative Societies, Mumbai City (3)
Competent Authority,
U/s 5A of the Maharashtra Ownership Flats Act, 1963.
Mhada Building, Ground Floor, Room No. 69, Bandra (E), Mumbai - 400051.
No.DDR-3/Mum./ Deemed Conveyance/Notice/637/2024 Date: - 23/02/2024
Application u/s 11 of Maharashtra Ownership Flats
(Regulation of the Promotion of construction, Sale, Management and Transfer) Act, 1963
Public Notice
Application No. 25 of 2024
Shalimar Co-op. Hsg. Soc. Ltd., CTS No. 40 to 46, 48,50 & 51 of Village G Ward Bandra,
Taluka Andheri, City Survey Office Bandra, Final Plot No. 2 A,2B, 2D & 2 E T.P.S. Santacruz-
II in H/W Ward of Mumbai Sub-Urban District at Junction of Tagore Road & Bhargav Road,
Santacruz (West), Mumbai 400 054. ....Applicant/s Versus 1) M/S Venus Development
Corporation (A Partnership Firm) Having Last known address at 303, Commerce House,
Nagindas Master Road. Fort, Mumbai- 400 023. 2) M/S Vardhman Developers Ltd., Having
Last known address at 113- Commerce House, 140, N.M. Road, Fort, Mumbai- 400 023.
3) Gunvanti Jayantilal Kotak 4) Bhagwan Jayantilal Kotak 5) Naresh Jayantilal Kotak
Opponent NO. 3 to 5 having their last known Address at CTS No. 40 to 46 & 48 of Village G
Ward Bandra, Taluka, Andheri, City Survey Office Bandra, Final Plot No. 2 A, 2B & 2D, T.P.S.
Santacruz-II in H/W Ward of Mumbai Sub-Urban District at Junction of Tagore Road & Bhargav
Road, Santacruz (West), Mumbai 400 054. 6) Shri. Champaklal Kishorchandra Vardhan
7) Smt. Shantibai Kishorchandra Vardhan 8) Shri. Umedraj Kishorchandra Vardhan 9)
Shri. Ugamraj Sohanraj 10) Shri. Shantilal Mistrimal 11) Smt. Savitribai Mistrimal 12)
Smt Ugambai Sohanraj Opponent No. 6 to 12 having their last known Address at CTS No.
50 & 51 of Village G Ward Bandra, Taluka Andheri, City Survey Office Bandra, of Mumbai
Suburban District at Junction of Tagore Road & Bhargav Road, Santacruz (West), Mumbai
400 054. 13) Laxmidas Dharsibhai Gesota, Having last known address at Final Plot No. 2
E,T.P.S. Santacruz-II In H/W Ward of Mumbai Sub-Urban District at Junction of Tagore Road
& Bhargav Road, Santacruz (West), Mumbai 400 054. 14) Krishna Kunk, Having address at
Junction Tagore Road & Bhargav Road, Santacruz (West), Mumbai 400 054. ... Opponents
and those, whose interests have been vested in the said property may submit their say at the
time of hearing at the venue mentioned above. Failure to submit any say shall he presumed
that nobody has any objection to this regard and further action will be taken accordingly.
Description of the Property, :-
Claimed Area
Competent Authority be pleased to issue a certiicate of entitlement of Unilateral Deed of
Conveyance of land admeasuring 2176.93 sq mtrs out of 2827.80 sq mtrs (i.e. Propertionate
Rights in Net Plot Area as per PRC) Plus proportionate right in Road Set-back Area
admeasuring 533.49 sq.mtrs Out of 693.00 sq mtrs as speciically set out in the Property
Registration Card and latest approved Building Plan issued from the MCGM office in favour of
the Applicant's as the same falls within jurisdiction of this Competent Authority
The hearing is ixed on 11/03/2024 at 3.00 p.m.
Sd/-
(Rajendra Veer)
District Deputy Registrar,
Co-operative Societies, Mumbai City (3)
Seal Competent Authority,
U/s 5A of the MOFA, 1963.
15
BEFORE THE NATIONAL COMPANY LAW TRIBUNAL,
MUMBAI BENCH, MUMBAI
(ORIGINAL JURISDICTION)
COMPANY SCHEME APPLICATION NO. 277 of 2023
In the matter of the companies act, 2013 (18 of 2013)
AND
In the matter of application under Sections 230 to 232 of the Companies Act, 2013 and
other applicable provisions of the Companies Act, 2013
AND
In the matter of Parthiv Corporate Advisory Private Limited, a company incorporated
under the provisions of Companies Act, 2013
AND
In the matter of Inland Printers Limited, a Company incorporated under the provisions
of Companies Act, 1956
AND
In the matter of Scheme of Amalgamation of Parthiv Corporate Advisory Private Limited
('the Transferor Company') With Inland Printers Limited ('the Transferee Company')
and their respective shareholders and creditors
Parthiv Corporate Advisory Private Limited, a Company incorporated )
under the Companies Act, 2013, having its registered office at A/708, )
Kanakia Wall Street, Andheri Kurla Road, Chakala Junction, Andheri )
(East), Mumbai - 400093 )
CIN: - U93000MH2017PTC291314 )
Email-id - accounts@parthivgroup.com ) ..the Applicant No. 1 /
Transferor Company
Inland Printers Limited, a Company incorporated under the Companies )
Act, 1956, having its registered office at F-18, Tenth Central Mall, Mahavir )
Nagar, Kandivali West, Mumbai - 400067 )
CIN:- L99999MH1978PLC020739 )
..the Applicant No. 2 /
Email-id - inlandprintersltd@gmail.com )
Transferee Company
JOINT NOTICE AND ADVERTISEMENT OF MEETING OF EQUITY SHAREHOLDERS AND
UNSECURED CREDITORS OF INLAND PRINTERS LIMITED AND SECURED CREDITORS
OF PARTHIV CORPORATE ADVISORY PRIVATE LIMITED
NOTICE is hereby given that by an Order dated 13th February, 2024 the Hon'ble National Company Law Tribunal,
Mumbai Bench (“Tribunal” or “NCLT”) ( the NCLT Order) has directed to convene separate meetings of the Equity
Shareholders and the Unsecured Creditors of Inland Printers Limited ('the Transferee Company') and the Secured
Creditors of Parthiv Corporate Advisory Private Limited ('the Transferor Company') for the purpose of considering,
and if thought fit, approving with or without modification, the Scheme of Amalgamation (“Scheme”) between Parthiv
Corporate Advisory Private Limited ('the Transferor Company') with Inland Printers Limited ('the Transferee
Company') and their respective shareholders under the provisions of Sections 230 to 232 of the Companies Act, 2013
and the other applicable provisions thereof and applicable rules thereunder.
In pursuance of the said NCLT Order and as directed therein, in compliance with the applicable provisions of the
Companies Act, 2013 (“Act”) and circulars issued thereunder, as amended from time to time and SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR”), further notice is hereby given that
separate meeting of Equity Shareholders and Unsecured creditors and Secured Creditors of the Companies will be held
through video conferencing/other audio-visual means (“VC/OAVM”), as per the schedule mentioned below, at which
day and time the said Equity Shareholders, unsecured and secured creditors of Companies are requested to attend:
Inland Printers Limited (Transferee Company):
Parthiv Corporate Advisory Private Limited (Transferor Company):
Notice of the aforesaid meetings inter alia including Scheme, explanatory Statement, e-voting instructions and log in
credentials wherever applicable have been sent on 23rd February, 2024 and 24th February, 2024 through electronic
mode to those shareholders and creditors whose email IDs are registered with the Companies; and through
registered post to those whose email IDs are not registered with the Companies, respectively, whose names appear
in the record of the Companies as on 16th February, 2024 for Equity shareholders and as on 31st December, 2023 for
Secured and Unsecured Creditors
Copies of the said Scheme of Amalgamation and Notices dated 17th February, 2024 alongwith the Scheme,
Explanatory Statement under Sections 230 to 232 and under 102 of the Companies Act, 2013 respectively read with
Rule 6 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 along with the enclosures,
can be obtained free of charge at the registered office of the respective Companies.
Pursuant to the said NCLT Order read with the MCA Circulars, voting at the above meetings shall not be permitted by
Proxies. However, institutional / corporate creditors or shareholders are entitled to appoint their authorized
representatives for the purpose of voting through remote e-voting and for the participation in the meeting.
NCLT has appointed Mr. Dipak Kumar Shah (ICSI Membership No.: F3875 {PCS} ), to be the Chairman, Mr. Ashish
Kumar Jain (ICSI Membership No.: F6058 {PCS}), as Alternate Chairman and Ms. Akanksha Mota (ICSI Membership
No.: A24626 {PCS}), as the Scrutinizer of the said meetings of the Equity Shareholders, Secured and Unsecured
Creditor of the Applicant Companies, including for any adjournment or adjournments thereof.
The Scheme, if approved in the aforesaid meetings, will be subject to the subsequent approval of NCLT.
FURTHER NOTICE is hereby given that: -
1. The Company has engaged the services of Central Depository Services (India) Limited ("CDSL") for the purpose
of providing facility of remote e-voting prior to the Meeting, for participation in the Meeting through VC/OAVM
Facility and e-voting during the Meeting. Persons entitled to attend and vote may vote through remote e-voting
facility made available both prior to as well as during the Meeting through VC/OAVM. The necessary instructions
for remote E-voting and E-voting during the meetings have been set out in the Notices dated 17th February, 2024.
This facility is being provided to Equity Shareholders, Secured Creditors and Unsecured Creditors of the
Applicant Companies as on Cut-off date as mentioned in the respective notices.
2. For the aforesaid meetings of Equity Shareholders, Secured Creditors and Unsecured Creditors, the voting
period for remote e-voting (prior to the Meeting) commences on Sunday, the 24th March, 2024 at 9:00 A.M. and
ends on Tuesday, the 26th March, 2024 at 5:00 P.M. Thereafter the remote e-voting module shall be disabled
by CDSL. During this period, the Equity Shareholders, Secured Creditors and Unsecured Creditors may cast
their vote (for or against) electronically. Once the vote on the resolution is cast by Equity Shareholders, Secured
Creditor and Unsecured Creditor then they will not be allowed to change it subsequently.
3. The Voting rights shall be reckoned on the shares and outstanding amount registered in the names of Equity
Shareholders as on cut-off date as mentioned in the respective notices.
4. The Equity Shareholders, Secured Creditors and Unsecured Creditors of the Applicant Companies can opt only
one mode for voting i.e., remote e-voting or e- voting at the meeting. It is clarified that casting of votes by remote e-
voting (prior to the Meeting) does not disentitle the Equity Shareholders, Secured Creditors and Unsecured
Creditors from attending the Meeting. However, any Equity Shareholders, Secured Creditors and Unsecured
Creditors who has voted through remote e-voting prior to the Meeting cannot vote through e-voting during the
Meeting. The Equity Shareholders, Secured Creditors and Unsecured Creditors of the Applicant Companies
attending the Meeting through VC/ OAVM, who have not cast their vote through remote e-voting prior to the
Meeting shall be entitled to exercise their vote using the e-voting facility made available during the Meeting
through VC/OAVM.
5. In terms of the Order, the quorum for the meeting of the Equity Shareholders shall be minimum 130 shareholders
in number and if quorum is not present within half an hour from the time appointed for holding of the meeting, then
the quorum shall be as prescribed under Section 103 of the Companies Act, 2013, which shall be 15 (fifteen)
equity shareholders present in person.
6. In terms of the Order, the quorum for the respective meetings of secured and unsecured creditors shall be as per
Section 103 of the Companies Act, 2013.
7. A copy of this Notice and the accompanying documents will be hosted on the website of the Transferee Company
at www.inlandprinters.in and will also be available on the website of BSE Limited ("BSE") at www.bseindia.com
and also on the website of CDSL at www.evotingcdsl.com.
8. In case any Equity Shareholders, Secured Creditor and Unsecured Creditor wish to receive a copy of the notice they
are requested to send an email to inlandprintersltd@gmail.com / cs@parthivgroup.com duly quoting his/her e-
mail id or name as the case may be and copy of this Notice will be provided to such creditor.
9. Ms. Akanksha Mota (Membership No. A24626 and CP No. 15096), Practicing Company Secretary has been
appointed as the Scrutinizer by the NCLT vide its Order dated 13th February, 2024 to conduct the e-voting
process and e- voting at the meeting in a fair and transparent manner.
10. The Scrutinizer shall, after the conclusion of the Meetings, submit a consolidated Scrutinizer's report of the total
votes cast in favour and against the resolution and invalid votes, if any and submit the same to the Chairman of the
Meetings or a person authorized by the Chairman in writing who shall countersign the same.
11. The result of the voting shall be announced by the Chairman of the Meetings or a person authorized by the
Chairman in writing within 2 (two) working days from the conclusion of the Meetings upon receipt of the
Scrutinizer's report. The results declared, along with the Scrutinizer's report, shall be displayed at the notice
board of registered office of the Company and hosted on the Company's website at: www.inlandprinters.in and on
the website of CDSL at www.evotingcdsl.com immediately after the result is declared. The Company shall also
simultaneously forward the results along with the scrutinizer's report to BSE Limited, the stock exchange where
the Company's shares are listed.
12. Any queries/grievances in relation to the remote e-voting or e-voting during the meeting may be addressed to Mr.
Rakesh Dalvi, Sr. Manager, (CDSL,) Central Depository Services (India) Limited, A Wing, 25th Floor, Marathon
Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), Mumbai - 400013 or send an email to
helpdesk.evoting@cdslindia.com or call toll free no. 1800 22 55 33.. The Company Secretary or any Authorized
person of the respective Applicant Companies can also be contacted at +91 9987773105.
For Inland Printers Limited For Parthiv Corporate Advisory Private Limited
Sd/- Sd/-
Dipak Kumar Shah Dipak Kumar Shah
Chairman Appointed for the Meeting Chairman Appointed for the Meeting
Place: Mumbai ICSI Membership No.: F3875 ICSI Membership No.: F3875
Date: 24th February, 2024
16
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MUMBAI | MONDAY, 26 FEBRUARY 2024 1

NAGA LIMITED
CIN: U24246TN1991PLC020409
Regd. Office: No.1, Anna Pillai Street, Chennai – 600 001
Telephone: 044 - 2536 3535,
Website: www.nagamills.com, Email: cs@nagamills.com
NOTICE OF POSTAL BALLOT
NOTICE is hereby given for obtaining the consent of the Members through postal
ballot for the Special Business by way of Special Resolution, for seeking approval
of members for alteration of Objects Clause of Memorandum of Association (MOA)
of the Company.
Pursuant to Section 110 of the Companies Act, 2013 (the Act), read with Rule 22 of
the Companies (Management and Administration) Rules, 2014 (the Rules), including
any statutory modification or re-enactment thereof for the time being in force, and as
amended from time to time, the said notice has been sent through courier to all the NOTICE
shareholders of the Company on 23.02.2024 whose names appear on the Register Notice is hereby given that the Certificates for 200 Equity Shares of Larsen & Toubro Ltd
of Members (ROM)/List of Beneficial Owners (BO) maintained by the Registrar and standing in the names of Mayank Raj Modi and Raj Kumar Modi, the registered Joint
Share Transfer Agent (“RTA”) as at the closure of business hours on 16.02.2024, holders have lost/misplaced and the undersigned have applied to the Company to issue
in A4 size envelope, having (a) Postal Ballot Notice, (b) Postal Ballot Form and (c) Duplicate Certificates(s) for the said shares under Folio No. 08979090.
Sufficient Stamp affixed postal cover addressed to the Scrutiniser appointed for this No. of Equity Shares held Certificate No. Distinctive Number (s)
50 83711 4063930 4063979 Date : 26-2-2024
purpose. Further, for those shareholders whose email ids are registered with the
Company/RTA, in addition to the courier, notice has also been sent to their email ids. 50 241862 142699834 142699883
The Notice of the Postal Ballot is also been placed on the Website of the Company 100 360900 578102451 578102550
i.e., www.nagamills.com. Any person who has any claim in respect of the said shares should write to our Registrar,
The Postal Ballot voting period commenced from the date of dispatch of notice KFin Technologies Limited, Selenium Tower-B, Plot 31-32, Gachibowli, Financial District,
i.e., 23.02.2024 and ends on 23.03.2024. The duly filled in and signed Postal Ballot Hyderabad– 500032 within one month from this date else the Company will proceed to
Forms are required to be sent to the Scrutinizer within the aforesaid period, otherwise issue duplicate certificate(s). Sd/-
such postal ballot forms will not be considered for counting of votes. Members who Place: Mumbai, Date: 26/02/2024 Mayank Raj Modi & Raj Kumar Modi
have not received the Postal Ballot Notice and are desirous of voting may download
the same from the website of the Company.
The results of the voting would be declared as stipulated in the relevant rules and also
will be placed on the website of the Company.
In case of any queries/difficulties, Members may contact the undersigned through
Email ID: cs@nagamills.com.
By Order of the Board
For Naga Limited
Place: Chennai V. Balamurugan
Date: February 26, 2024 Company Secretary
>
MUMBAI | MONDAY, 26 FEBRUARY 2024 17
18 MONEY MANAGER
>
GUEST COLUMN
MANISH SHAH
Navigatingthe
exportmaze
forMSMEs
Micro,small,andmediumenterprises(MSMEs)
constitutenearlyhalfthecountry’stotalexports,
contributingapproximately33percenttoits
GDP.However,thefacilitationoftheseexportsis
primarilyorchestratedbysignificantexport
houses,mainlyduetotwokeyfactors:Scarcityof
marketinformationanddeficiencyinbusiness
contacts.Theabsenceofaformalinstitutional
structureinnumerousMSMEsplacesthemata
disadvantageinaddressinginformation
asymmetries.Incontrasttolargercorporations
endowedwithdedicatedresourcesfor
advertising,marketresearch,anddistribution
networks,MSMEsoftenneedmorefinancial
capabilitiesduetotheirsmallerscale.
AnotherprominenthurdleforMSMEs
venturingintointernationaltradeislackof
awarenessregardingexportprocedures,
documentationprerequisites,andnon-tariff
barriers(NTBs)applicabletotheirproducts.This
knowledgedeficitfrequentlyleadstodelays,
escalatedcosts,andmissedopportunities.
Thisinformationvoidcanbebridged;a
criticalneedexistsforcomprehensiveandeasily
accessibleinitiativestailoredtothespecific
requirementsofMSMEs.Theseinitiativesmay
encompassworkshops,webinars,online
resources,anddedicatedsupportcentres.Such
endeavoursshouldofferlucidexplanationsof
exportprocesses,meticulousguidanceon
documentationrequirements,andexhaustive
informationonNTBsandtheirramifications.
Digitisationholdsimmensepotentialto
revolutioniseMSMEexports.Byadoptingdigital
technologies,theycanstreamlineexport
processes,reducecosts,expandmarketreach,
andenhanceoperationalefficiency.E-
commerceplatforms,onlinemarketplaces,and
digitaltradefacilitationtoolscanempowerthem
toconnectwithglobalbuyersandcompete
effectivelyininternationalmarkets.These
technologiescanhelpreachawideraudience,
overcomegeographicalbarriers,andpresent
theirproductsandservicesinamore
professionalandvisuallyappealingmanner.
Additionally,digitaltradefacilitationtoolscan
automateCustomsclearanceprocedures,reduce
documentation
requirements,and
streamline
international
payments,reducing
transactioncostsand
enhancingtheoverall
exportexperience.
India’s
engagementinfree-
tradeagreements
(FTAs)hasopenedup
newavenuesfor
MSMEexports,
Digitisation holds offeringpreferential
immense potential tariffrates,and
to revolutionise reducednon-tariff
MSME exports. Digital barriersinvarious
technologies can targetmarkets.
streamline exports, However,their
reduce costs, expand utilisationofFTAs
reach, and enhance needstobehigher,
operational highlightingtheneed
efficiency fortargetedoutreach
andcapacity-building
programmes.MSMEsneedtobeequippedwith
theknowledgeandskillstonavigatecomplex
FTAprovisions,identifypotentialexport
opportunities,andeffectivelyutilisethebenefits
offeredbytheseagreements.Tohelpthemtake
advantageofFTAs,theycanparticipatein
workshops,seminars,andtrainingprogrammes
thatprovidedetailedinformationonthespecific
provisionsofFTAsandtheproceduresfor
utilisingthem.Moreover,government-
sponsoredinitiativescanencourageMSMEsto
participateintradefairsandexhibitionsinFTA
partnercountries.
CreatingasupportiveecosystemforMSME
exportrequiresamulti-prongedapproach
involvinggovernment,industryassociations,
andfinancialinstitutions.Government
initiativesshouldsimplifyexportprocedures,
reducecompliancecosts,andincentiviseMSMEs
toadopttechnologyandparticipatein
internationaltradefairsandexhibitions.These
incentivesincludetaxbreaks,subsidies,and
fundingforexport-relatedactivities.Industry
associationscanbecrucialinproviding
mentorship,networkingopportunities,and
marketinsightstoMSMEs.Theycanorganise
trademissions,facilitatematchmakingbetween
MSMEsandpotentialbuyers,andprovide
guidanceoncomplyingwithinternational
standardsandregulations.Financialinstitutions
cantailortheirproductsandservicestothe
specificneedsofMSMEexporters,offering
simplifiedloanapplications,reducedcollateral
requirements,andexport-orientedfinancing
solutions.Thesetailoredsolutionscanaddress
thespecificfinancingneedsofMSMEs,suchas
workingcapitalforproduction,pre-shipment
financeforrawmaterials,andpost-shipment
financeforreceivablescollection.
Acomprehensiveapproachthatcombines
policyreforms,capacity-buildinginitiatives,and
strategiccollaborationsisessential.Every
stakeholderneedstoworkhandinhandtocreate
asupportiveecosystemforMSMEsthrough
digitisation,educationontradeagreements,and
empoweringinitiatives.Together,wecancreatea
thrivingexportlandscapeandpavethewayfor
India’ssuccessontheglobalstage.
The writer is MD & CEO, Godrej Capital
The new
faultlines
With Mint Road’s
action on Paytm
Payments Bank, it
may be time to put
the spotlight on
a few lingering
issues, reports
Raghu Mohan
“F
or want of a nail, the shoe was lost;
for want of a shoe, the horse was
lost; and for want of a horse, the
rider was lost.” Commonly attributed to
Benjamin Franklin, it can be a trigger for a
fresh look, after the developments at Paytm
Payments Bank (PPB), at the following: Should
there be a revisit of the domestic-systemically
important bank (D-SIB) framework, and is
there a case for this to be widened to cover
more kinds of regulated entities (REs)? Also,
should there be an examination of the root
causes that led to the domination of UPI
(Unified Payments Interface) apps like
PhonePe and Google Pay (owned by
foreign capital), and its interlinkage with the
pricing of UPI?
Take D-SIBs, a list of which has been
released by the Reserve Bank of India (RBI).
As of now, there are three banks on it: State
Bank of India, HDFC Bank, and ICICI Bank.
But the PPB episode tells us that even a pay-
ments bank (PB) can cause systemic distur-
bance – if it does not adhere to norms. The
global financial crisis following the dramatic
collapse of Silicon Valley Bank, Signature
Bank, and the epitaph of Credit Suisse —
which now resides in the belly of UBS — tells
us that new risks are coming to the fore. And
the idea of systemically important institutions
may have to be rethought. Or flashback to
2002: Madhavpura Mercantile Cooperative
Bank (MMCB) had unsettled the authorities.
The bank issued pay-orders (POs) of ~1,200
crore to stock broker Ketan Parekh, which
were discounted by Bank of India (BoI). The
MMCB-BoI saga, a case of conflating POs with
cheques, caused instability.
A different approach?
The Bank for International Settlements has
assigned a weight of 6.67 per cent for pay-
ments in its approach for assessing the impor-
tance of global systemically important banks;
the RBI, too, has followed this template for D-
SIBs. But the huge spurt in the payments busi-
ness — with fintech companies playing a
major part and their partnership with banks
“Payments are no
more peripheral,
it is right at the
heart of financial
services business”
RAVI DUVVURU
Founder, Duvvuru & Reddy LLP and Member-
Advisory Group, Regulatory Review Authority 2.0
‘A rethink on priority
sector norms for SFBs
can be helpful’
Nearly a decade ago, the Reserve Bank of India (RBI) licensed 10 small finance banks (SFBs) to
bolster financial inclusion. The Report on Trend and Progress of Banking in India (FY23) notes
that some microfinance institutions among SFBs earlier retained their business models.
Consequently, the share of unsecured lending in their portfolios, especially to microfinance
and joint liability group borrowers, is high. Lack of asset diversification is also often coupled
with geographical concentration, implying significant risk. A comprehensive review of the
regulatory capital framework for SFBs is under consideration. A few SFBs also want a relook at
the license condition that 75 per cent of their advances be to the priority sector, and more
clarity towards a universal banking licence. UMA SHANKAR PALIWAL, chief executive officer of
the Association of Small Finance Banks of India (and former executive director, RBI), spoke
with Raghu Mohan in a video interview. Edited excerpts:
At the outset, your views on SFBs’
journey so far…
The RBI (Reserve Bank of India)
granted licences in September 2015
to 10 SFBs. The requirement and UMA SHANKAR current form?
expectation, including the objective PALIWAL
of the RBI, were that it should lead to CEO, ASFBI
greater financial inclusion and also
serve the unbanked areas. So, to that extent,
yes, all the 10 SFBs that have been in
existence have been doing a good job, and in
addition to them, two more have joined in the
past two years with one converting from a
cooperative bank, which the RBI has also
(across business
verticals) — has meant
the plot has changed. In
July 2014, when the RBI
released the framework for D-SIBs,
it said: “The methodology for assessing the
systemic importance of banks and identifying
them will be reviewed on a regular basis”.
While this was a reference to commercial
banks, should it now be widened to capture
adjacent ecosystem participants?
Ravi Duvvuru’s view is that “payments are
no more a peripheral business — they are
right at the heart of financial services.” The
same holds for the supporting architecture:
The National Payments Corporation of India
(NPCI), account aggregators (AAs), and even
The Clearing Corporation of India (CCIL). The
founder and designated partner at Duvvuru
& Reddy LLP and member of the advisory
group to the second Regulatory Review
Authority set up by Mint Road feels these
entities — PBs, NPCI, AAs and CCIL — are
“systemically important” too, like legacy
banks, and non-banking financial companies
(NBFCs). Plus, factor in that the NITI Aayog
has put out “A Proposal for Digital Banks in
India: Licensing & Regulatory Regime”, in
July 2022.
Systemic risk is understood as one that can
cause impairment to part of the financial sys-
tem, impacting on the real economy. “While
the commonly used entity-based model is lev-
erage based, there’s a good case for looking at
an activity-based model that covers PBs and
broadly, payment players,” notes R
Gurumurthy, former head-governance, RBL
Bank. He adds: “An activity-based model can
then look at dominant players and build in
systemic mitigation methods. Probably, the
‘B’ in D-SIB can be replaced by ‘E’ to indicate
an ‘entity’.” His views emanate from the rea-
soning that “interconnectedness and the abil-
ity to cascade problems”, which determine
“It takes time for some
fintech to understand
the seriousness needed
when they deal with
Mint Road”
ARPIT RATAN
CBO & Co-founder, Signzy
encouraged. So, it has been a
great journey.
Is the SFB model sustainable in its
Yes, categorically. One, the licensing
conditions said 75 per cent of the
advances have to go to the priority
sector, and all SFBs have been doing it very
successfully. Two, of total advances, 50 per
cent have to be below ~25 lakh — a condition
that leads to furthering financial inclusion.
The very fact that 25 per cent of the branches
have to be opened in unbanked areas has also
MUMBAI | MONDAY, 26 FEBRUARY 2024
IMAGING: AJAY MOHANTY
POINTS TO
PONDER
n Should there be a relook at what
constitutes systemically important entities
on Mint Road’s turf?
n Is there a case for other financial
regulators also to come out with such a list?
n Did free pricing of UPI lead to the
dominance of Google Pay and PhonePe with
banks leaving this turf?
n Should the issue of pricing UPI be revisited,
almost one and half years after the RBI’s
discussion paper on ‘Charges in Payment
Systems’ was released in October 2022?
systemic risk are a key feature of non-bank
payment players and hence, they should also
be covered by a broader framework. Now
whether other financial regulators — the
Securities and Exchange Board of India, the
Insurance Regulatory and Development
Authority of India, and the Pension Fund
Regulatory and Development Authority —
should come out with a list of systemically
important entities in their domain is
worth pondering.
Other linkages
It also brings into the spotlight Mint Road’s
discussion paper – “Charges in Payment
Systems (October 2022) — which made a case
for pricing UPI (though it did not specifically
mention it). “In any economic activity, includ-
ing payment systems, there does not seem to
be any justification for a free service, unless
“The jury is out on
how long free UPI is
sustainable. There’s
a push to unlock
monetisation
opportunities”
RANADURJAY TALUKDAR
Partner & Payments Sector Leader, EY India
been met. I would also like to reiterate that
the conditions in the market and the
operations of SFBs in meeting the
requirements and showcasing them – in
terms of the licence conditions for which
they were set up – have been established in
the past seven years.
But do you feel there is a need for a rethink
on the SFB priority sector norm to align with
that of commercial banks at 42 per cent
of book?
Well,thelicensingconditionsasweallknow
1
there is an element of public good and ded-
ication of the infrastructure for the welfare of
the nation. But who should bear the cost of
setting up and operating such an infrastruc-
ture is a moot point.” Days after the release
of the same, North Block tweeted: “UPI is
a digital public good with immense con-
venience for the public and produc-
tivity gains for the economy. There
is no consideration in the govern-
ment to levy any charges for UPI
services. The concerns of service pro-
viders for cost recovery have to be met
through other means.” Even as many
wondered what these “other means”
could possibly be.
Why should this report be revis-
ited? Because the desirabil-
ity of pricing UPI (or
otherwise) must
be read along
with the ob-
servation ma-
de by the Stan-
ding Committee
on Communications
and Information Techn-
ology last fortnight: The
dominance of foreign firms in the
payments business. PhonePe and
Google Pay market shares were 46.91 per
cent and 39.39 per cent, respectively, by
volume during October - November 2023; the
market share by volume of BHIM UPI was only
0.22 per cent.
The NPCI had in November 2020
said that payment firms are not to process
more than 30 per cent of total volume of trans-
actions on UPI from January 1, 2021. This is
exactly what the Standing Committee on
Communications and Information Techn-
ology has reinforced (the dominance of for-
eign firms). But what triggered this in the first
place? Because banks have almost vacated this
turf as pricing of UPI remains unresolved.
What’s also lost in the din is that banks pay a
switching fee to the NPCI (a not-for-profit
entity) running into hundreds of crores every
year for UPI, even as they have to offer the
service for free — be it for peer-to-peer or peer-
to-merchant transactions. And with Paytm
being a cause for concern, it may only accentu-
ate the tilt towards Google Pay and PhonePe.
Pricing of UPI can be argued on either side
of the debate (whether it should continue to
be free or not), but what you cannot get away
from is that while it has fundamentally
changed consumer behaviour, the reality is
that it involves substantial costs to run the
payments system. “But the jury is out on how
long this (free UPI) is sustainable. There’s a
clear push to unlock monetisation opportu-
nities in UPI. As evidenced by digital credit
lines, credit cards (on the UPI rail), and charg-
ing for wallet-originated UPI transactions,”
says Ranadurjay Talukdar, partner and
payments sector leader, EY India.
And lastly, where does the know-your-cus-
tomer (KYC) norm fit in the larger scheme of
things? According to Arpit Ratan, chief busi-
ness officer and co-founder, Signzy, it takes
time for some fintech companies to under-
stand the seriousness needed when they deal
with Mint Road, unlike legacy REs like banks
or NBFCs. “But I am sure that compliance
will get more attention from businesses
because it’s as important as marketing today
for business to grow. Investors will also nudge
fintech to take necessary measures as it helps
in safeguarding business reputation in the
long run.”
Whichever way you look at it, Franklin had
hit the nail on the head.
“There is a good case for
looking at an activity-
based model that covers
PBs and broadly,
payment players”
R GURUMURTHY
Former Head-Governance, RBL Bank
weredifferent.Theregulatorcanthinkofhaving
aglidepaththatmaynotbetouching42percent
becausethenthegapbetweenthetwoandthe
distinctionbetweenanSFBandauniversalbank
woulddisappear,atleastonthisfront.
The stock market performance of SFBs
appears to indicate that further supply of
capital is going to be an issue.
The majority of the SFBs are listed; I am
talking of the original 10. What we have seen is
an overwhelming response in the IPO (initial
public offering) participation by the public as
well as investors (institutional), and that
proves that there is appetite for the sector.
And this is also further complemented by the
fact that for on-tap licences, 10 applications
have been received, some of which were
under active consideration and some of them
continue to be so.
Do you think there is a need for further
clarity on SFBs path towards universal
bank licences?
The guidelines of 2015 indicated that after the
successful completion of five years and
subject to the conditions that have to be met
in terms of the networth and capital for
applying for a universal bank licence, SFBs
that are fulfilling the requirement are eligible.
Now, it is left to SFBs to take a call as and when
they feel like whether it would be an option
for them. And yes, in case there is clarity
required on the existing guidelines the SFBs,
including the Association of SFBs can always
engage. And we are willing to provide the
inputs to the regulator to ensure that there is
clarity in case some need is felt on part of the
SFBs for doing so.
.
MUMBAI | MONDAY, 26 FEBRUARY 2024
DANCING WITH THE DRAGON
CanIndiaassimilate
Chinesecompaniesin
componentsPLIto
becomepartoftheglobal
electronicssupplychain?
SURAJEET DAS GUPTA
New Delhi, 25 February
I
n 2020, amid growing tensions on the
border, the Indian government tweaked
its policy governing foreign direct
investment (FDI), in effect closing the doors
on Chinese companies in electronics man-
ufacturing. However, this did not lead to
rapid localisation.
For instance, value addition in mobile
devices has been low — 12 to 20 per cent —
in the first three years of the production-lin-
ked incentive (PLI) scheme, which is half of
the target of 40 per cent to be achieved by
the end of FY26. Similarly, 95 per cent of the
laptops are imported, mostly from China.
That raises the question, can India build
a local electronics supply chain free from
Chinese companies?
“It is a choice the Indian government
must make. With economies of scale and
the latest technology, Chinese companies
can speed up the building of the local sup-
ply chain,” says the top executive of a lead-
ing mobile phone company.
Nurturing home-grown players will take
time and, without Chinese participation, a
local supply chain will be costly to build. For
many components, the only suppliers are
Chinese. Even now, 40-50 per cent of the
bill of items in mobile phones assembled in
India is sourced and imported from China.
The good news is that the government is
now willing to reassess its policy, as it starts
discussions with stakeholders for a new PLI
scheme specifically for electronic compon-
ents, covering mobiles, laptops, wearables,
and telecom gear. To ensure the PLI succ-
eeds this time, it has also hinted at review-
ing the contentious Press Note 3 of the FDI
policy and is considering allowing Chinese
players in joint ventures.
Press Note 3 requires investments from
entities based in a land-bordering country,
or when the beneficial owner of the invest-
ment is based in a land-bordering nation, to
be made under the “approval route” which
means only after goverment clearance.
Life without China
China is hard to ignore. Chinese companies
assemble 60 per cent of the world’s mobile
devices and as much as 75 per cent of the
world’s laptops. In FY23, China was top of
the pecking order, holding a 33 per cent
share of global electronics exports — far
ahead of Taiwan’s 12 per cent.
Companies such as Apple Inc might be
pushing iPhone production toward India,
but 80 per cent of it is still in China. No few-
er than 151 of the 188 suppliers for the iPho-
ne have a facility in China, reports suggest.
India’s move to keep Chinese companies
at bay has been Vietnam’s gain in the China
Plus 1 strategy. Companies trying to hedge
their bets in the face of the rising needle
between China and the United States have
found themselves gravitating towards the
open and welcoming arms of Vietnam.
For instance, electric vehicle maker BYD,
thwarted in its attempt to assemble iPads for
Apple Inc in India, went to Vietnam. Lux-
share, a large Apple Inc vendor from China,
moved its investments to Vietnam after it
did not see much movement in its proposal
to make components in India. Even local el-
STATSGURU
India’s food divide
SAMREEN WANI
Whether an Indian resides in a city or
a village can impact the availability of
food to them.
The government released data on India’s
consumption patterns after an 11-year gap on
Saturday. It showed that the average rural Indian
spends ~1,750 every month on food, equivalent to
46 per cent of total consumption spending. The
amount is larger in urban India at ~2,530, though
a smaller share (39 per cent) of the total
consumption expenditure.
StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines
CHINESE CHECKERS
Non-China sources of key electronics components
Keycomponents/sub-assemblies Non-Chinese sources
Batterycell TDK, Panasonic, Samsung, LG
PCB Korea Circuits, Compeq of Taiwan, Jabil and Sanmina of the US
CameraModule Samsung, Sony, LG Infotek
Mechanics Jabil, Dupont, Flextronics and Molex of the US
Activecomponents* TDK, Infineon in Germany, Rohm in Japan
Passivecomponents Rohm, Nippon Chemi-con, Samsung, Murata and Rubycon of Japan
*transistors and diodes
Chinese dominance in components and sub-assembly
44% of 20% AMOLED display is controlled 40% of passive electronics
PCB global by China, led by state-owned
production BOE Technology, which invested
is in China $9 billion in a plant
Source: Industry, and research agency estimates
ectronics manufacturing and services player
Dixon has dropped its application to set up a
joint venture with leading original design
manufacturer TINNO after a year of waiting.
Getting the Chinese to participate in the
revamped component PLI might not be
easy. The Centre’s first tentative bid was to
provide initial clearance to 12 Apple vend-
ors from China so that they could form joint
ventures with Indian entities and then seek
FDI clearance. But this proved to be a non-
starter. Chinese companies stayed away.
“With punitive action on many Chinese
firms in mobile devices and the difficulties
in getting visas for their executives, Chinese
vendors are not enthusiastic,” says the top
executive of a Chinese electronics maker.
There are several non-Chinese vendors
whom India can woo. The Indian Cellular
and Electronics Association (ICEA) is work-
ing on a proposal to focus on critical core co-
mponents for localisation, rather than spre-
ading the incentives under the proposed
PLI across all components. The logic is sim-
ple: Even in China, the value-add, after dec-
ades of mobile phone manufacturing and
assembly, is pegged at 40 per cent.
Cost advantage
One area the ICEA has identified is printed
circuit board, or PCB, which is the core for
making all electronics products, be it mob-
ile, laptops, wearables, or television. One
cannot depend only on imports for PCBs.
India currently has only PCB assembly
factories, which put together imported
PCBs, with passive and active components
(capacitors and transistors) and a bevy of
chips thrown in. The global reality is that
though 40 per cent of the PCB market is
controlled by China, there are enough non-
The differences are not
unique to India. A recent
71.4
71.4
release of data that the
United Nations Food and
Agriculture Organization
compiled from 28 countries
shows similar patterns.
The majority of the sample
consum-
showed higher food consum-
ption in urban areas compared
to rural ones. Over 70 per cent of
them exhibited higher protein and
fat intake for urban residents (Chart
( 1).
But additional factors make food
security more precarious in India than in many
large peers.
India has a higher share of undernourished
people. At 16.6 per cent, it is more than twice that
of South Africa, while countries like Russia and
China report less than 2.5 per cent (Chart
( 2).
While nearly a fifth of children under the age of
five in India are affected by wasting, it is less
than 5 per cent among peers.
India already has higher levels of
dietary inequality when compared to
other emerging markets (EMs) on a
per capita caloric consumption
(Charts 3, 4).
basis (Charts 4 INFLATION
This is despite a rise in the
cate-
supply of food across key cate-
gories in India.
Carbohydrates, protein, and
South Africa >
fibre are more available today
than a decade ago. Fat supply is
up 23.8 per cent over the past 10
years (Chart 5).
Higher food inflation can
exacerbate food security concerns.
The latest food inflation figure for India
is higher than in key EMs (Chart 6).
Source: industry, ICEA
components are made in China;
Japan far behind at number two
with 15%
Chinese players in Taiwan, South Korea,
and Japan. These include Korea Circuits,
Compeq, TTM Technologies, and Sanmina.
An ICEA executive says the way ahead is
to have discussions with prospective firms
to understand their requirements in the PLI
scheme and push them to come to India.
There are many critical areas that acc-
ount for a substantial portion of the cost of
production, where non-Chinese players are
already in the game. Apple Inc has tied up
with TDK of Japan to source critical cells in
the lithium battery for the iPhone through a
factory the latter is setting up near Delhi.
Cells account for over 62 per cent of the cost
of the battery and in mobile the battery acc-
ounts for 6 per cent of the production cost.
Corning, the king of glass, has made an
entry into India through a joint venture
with Optiemus to make cover glass with an
initial capacity of 30 million pieces per
annum. This glass is used in mobiles,
smartwatches, and laptops. The company
said it was looking to tap PLI incentives.
But many global players say a compo-
nent PLI supporting non-Chinese and
Indian players is not enough to change the
game. The sheer economies of scale of the
Chinese vendors, aided by government
support, gives them a big cost advantage
over the Japanese, Koreans, and Taiwanese.
For instance, in AMOLED displays for
mobile devices, the Chinese, led by state-
owned BOE Technology, have undercut LG
and Samsung in pricing, forcing the two
Korean companies to close ranks. Samsung
shuttered its LCD factory and is now pro-
ducing its panels with its rival.
Will the non-Chinese close ranks in
India? Or is it better for Indians and
Chinese to close ranks?
Fat >
Protein >
Energy >
Carbohydrate* >
Dietary fibre >
1 URBAN-RURAL
DIFFERENCES
Share of countries where
urban apparent intake is
higher than rural (in %)
Note: *Available. Based on a
sample of 28 countries.
Source: FAO,
Business Standard calculations
53. 50.0
6 found to be below the 2.5 per cent mark. The 2.5 per
4 HIGHER FOOD
INEQUALITY
Inequality (coefficient of variation
in per capita caloric consumption)
China >
Russia >
Brazil >
INDIA >
Note: Data for 2019. Inequality of food
consumption is measured by the coefficient
of variation in per capita caloric
consumption. Higher values represent
larger levels of dietary inequality.
Source: Our World In Data
TAKE TWO 19 <
How long will the bull run
continue for PSU banks?
Inthepastoneyear,theS&PBSEBankexhasbeenup17.63%andthe
NiftyBank17.04%.ButtheNiftyPSUBankIndexhasrisencloseto95%!
These days, every investor is busy dis- other words, they were under-valued.
secting a three-letter word while tak- Now, the investors are discovering
ing exposure in the Indian stock mar- value in such stocks as their balance
ket — PSU. It stands for public sector sheets have gained strength with
undertaking. Bank analysts have been better asset quality, backed by risk
looking at the pack of 12 PSU banks in management and underwriting skill.
a new light. Also, the PSU banks have shifted focus
The reason is not difficult to find. from growth to profitability.
Sherlock Holmes would have said, Another factor working in their
“Elementary, my dear Watson”. favour is the low floating stock or lack
Whether or not Holmes ever said of liquidity. For instance, only 1.75 per
this to Watson is debatable. But no one cent of P&S Bank stock is available to
questions Holmes’ keen power of the public for buying. The comparable
observation. He was a master of deduc- figure for IOB is 3.62 per cent, UCO
tive reasoning. Holmes was someone Bank 4.61 per cent and Central Bank
who could deduce or draw specific con-
clusions from general principles. The
of India 6.92 per cent. The govern-
ment’s holding in such stocks is too
bank analysts are exactly doing that. Typically, PSU banks are more high. Among 12 PSU banks, the gov-
In the December quarter, seven of forthcoming than private banks for ernment’s holding in SBI is the least:
the 12 PSU banks had less than 1 per project financing. Higher capex will 57.5 per cent. (Going by the SBI Act, it
cent net non-performing assets (NPAs) be a big opportunity for them to cannot drop below 55 per cent.)
and the rest below 2 per cent, with the shift focus from retail loans to Speculation on the likely privatisa-
highest being 1.8 per cent. The State long-term corporate loans tion of two PSU banks besides IDBI
Bank of India (SBI), the nation’s largest Bank (which has been on the drawing
lender, had just 0.64 per cent net new private banks (six of Bankex plus board for over a year now) has also been
NPAs. When did we see such healthy Bandhan Bank Ltd). adding to the investors’ excitement.
balance sheets of PSU banks? The data clearly says that the PSU Will the bull run on the PSU bank
Eight of them have at least 40 per banks’ market performance is far turf continue?
cent and up to 50 per cent low-cost better than their counterparts in the It’s not easy to predict the market.
current account savings account private sector. But there are at least two positive fac-
(CASA) deposits. Incidentally, they Out of the 12 PSU banks, eight have tors to back the PSU banks.
offer far lower interest rates on savings given more than 100 per cent returns One, when the fight for deposits is
bank deposits to investors over intense, the wide branch network and
than most private the past year, the customer base of such banks come in
banks, barring the highest being IOB handy for mobilising low-cost CASA.
very large ones. (173 per cent). PNB This also allows them to offer relatively
How have and Central Bank modest interest rates for fixed
their stocks per- of India stocks deposits. Also, PSU banks carry the
formed in the past have risen 166 per perception of implicit government
one year? cent and 155 per guarantee for deposits that encourages
Till last Friday cent, respectively. savers to keep money with them
(February 23), in Among PSU banks, despite lower interest rates.
the past one year, P&S Bank, Bank of Second is the government plan for
the broader BSE Maharashtra, UCO higher capital expenditure or capex in
Sensex has risen Bank, Union Bank the next financial year. While private
22.43 per cent and BANKER’S TRUST and Canara Bank capex is still a mirage, in the Interim
the 50-stock Nifty are the five others Budget, Finance Minister Nirmala
of the NSE Ltd TAMAL BANDYOPADHYAY belonging to the Sitharaman has raised the capex out-
26.54 per cent. 100 per cent+ stock lay for FY25 by 11.1 per cent to ~11.11
The S&P BSE Bankex, which con- returns club. trillion — 3.4 per cent of the gross
sists of 10 bank stocks, has been up The SBI stock has given the least domestic product. Typically, PSU
17.63 per cent; the Bank Nifty, an index return — 46 per cent. But that’s not banks are more forthcoming than pri-
of 12 most traded bank stocks, has small if we compare it with the uni- vate banks for project financing.
risen by almost an identical margin — verse of listed private banks that out- Higher capex will be a big opportunity
17.04 per cent. number their PSU peers. Barring three for them to shift focus from retail loans
But the Nifty PSU Bank index, small old private banks, none has to long-term corporate loans. They can
which helps us gauge the performance given over 100 per cent returns in the reap the benefits of this.
of the public sector banks, has risen past one year. In fact, two of them — Of course, there is a caveat. They
close to 95 per cent! This is an index of the largest and a medium-sized bank shouldn’t mess up project appraisal
the entire universe of the PSU bank — have yielded negative returns. (I am and refrain from showing a herd men-
stocks — SBI, Bank of Baroda (BoB), not including small finance banks in tality (joining the bandwagon for
Canara Bank, Punjab National Bank the category of private banks.) grabbing a project loan chunk with-
(PNB), Union Bank of India, Indian Among the large private banks, out understanding the risks) — some-
Bank, Bank of India, Bank of ICICI Bank stock has risen 26 per cent thing which they had indulged in the
Maharashtra, Indian Overseas Bank and Axis Bank stock 30 per cent. last decade.
(IOB), Central Bank of India, UCO Bank Others in this group that have done One hopes that they would tread
and Punjab & Sind Bank (P&S Bank). well are IDBI Bank Ltd (86 per cent), the path carefully — particularly when
The Bankex has just two PSU banks IDFC First Bank (54 per cent) and the government is unlikely to put any
(SBI and BoB), one small finance bank IndusInd Bank (38 per cent). pressure on PSU banks for infrastruc-
(AU Small Finance Bank Ltd), one old What’s the key to the stellar per- ture financing with blind eyes.
private bank (Federal Bank Ltd) and formance of the PSU banks on the
six new private banks (HDFC Bank Ltd, bourses?
ICICI Bank Ltd, Kotak Mahindra Bank Historically, PSU banks have been The writer is an author and senior advisor
Ltd, Axis Bank Ltd, IndusInd Bank Ltd underperforming vis-à-vis their pri- to Jana Small Finance Bank Ltd
and IDFC First Bank Ltd). vate counterparts. From a valuation His latest book is Roller Coaster:
Of the 12 banks in the Bank Nifty, perspective, the so-called price-to- An Affair with Banking
three are PSUs (SBI, BoB and PNB), one book value of a PSU bank stock or the To read his previous columns, please log on
old private bank and a small finance market valuation to its book value was to www.bankerstrust.in
bank (the two in Bankex) and seven considered good till a year ago. In X: @TamalBandyo
2 UNDERNOURISHMENT 3 NEARLY 20%
STILL A CHALLENGE INDIAN CHILDREN
Prevalence of
undernourishment
(3-year avg, in %)
16.6
1.9
China
AFFECTED BY
WASTING
Share of children
7.9 under 5 years affected
17.9
by wasting (in %)
4.7 3.1
Note: Wasting is a lethal
2.5 2.5 Brazil
form of malnutrition
defined as low
weight-for-height.
Data is for 2022. It was
Russian China Brazil South INDIA unavailable for Russia
Federation Africa 3.8 Source: FAO
Note: The prevalence for Russia and China has been
South
Africa
cent figure here has been used in the absence of an
exact point estimate. Data for period ending 2022.
Source: FAO
18.7
INDIA
5 FAT SUPPLY HAS GROWN
MOST OVER LAST DECADE
Increase in supply
(growth over last decade, in %)
23.8 11.6
16.2
7.2 8.2 8.3
6 HIGHER 7.0
FOOD
Dietary fibre
0.19 1.2
ein
rgy
Note: Data for Retail food inflation
Prot
India between
Ene
(year-on-year
t
0.22
Fa
2011 and 2021.
te
Source: FAO, change, in %)
ra
yd
Business
0.25
oh
Standard
China 0.7
rb
calculations
Ca
0.24 Brazil South Russia INDIA
Africa
0.26
Note: Data for Russia is as
of December 2023, rest is as
of January 2024. Compiled
-5.9 by BS Research Bureau
Source: Bloomberg
20
>
Bullet train: From vanity to vision
India’s dream of high speed rail, though delayed by years, is inching closer to reality
DHRUVAKSH SAHA
Mumbai, 25 February
O
n a quiet day, it can take even the
slickest of drivers half an hour to
cross the Bandra Kurla Complex
(BKC) area in Mumbai. On a busy day, the
jam-packed roads of the city’s up and com-
ing commercial hub try the patience of
every commuter — even going by Mumbai’s
high tolerance levels for traffic snarls.
Between the construction of the BKC
station of the Mumbai Metro Aqua Line,
flyover projects in the vicinity, and rapid
development of real estate in the area, there
has been little respite for those who come
here, wriggling their way through conges-
tion, every day to earn a living.
Sequestered from all the din lies a
1-kilometre patch of land, where nearly 800
workers toil every day, away from the public
commotion. This block of rubble and earth
will eventually become the birthplace of
high speed rail in India, better known as
bullet train.
“Is this where the bullet train will start?”
asks Satish, a local vendor who works a little
distance from the excavated site of the sta-
tion on the Mumbai-Ahmedabad High
Speed Rail (MAHSR) corridor. “If you hadn’t
told me, I would not even have known.
There hasn’t been much disturbance over-
ground because of the digging,” he adds,
apparently not feigning ignorance.
Locals say that the station’s progress has
been largely unobtrusive, an exception
almost anywhere in India and especially in
the financial capital famous for constant
construction work.
While construction is not noticeable to
passersby, this site under excavation trans-
ports 500 trucks every day to dump the bur-
rowed earth to the designated area. The dig-
ging will extend to a depth of 32 metres, a
ninth of which has been completed by a
consortium of Megha Engineering &
Infrastructures Ltd and Hindustan
Construction Company Ltd.
The joint venture was awarded the con-
tract in March last year, and began con-
struction in September. With a stated dead-
line of 54 months, the station is expected
to be commissioned by March 2028.
The 508-km long MAHSR corridor
worth ~1.08 trillion aimed completion by
2022 when it was announced; it is
expected to be delayed by at least six years,
owing to political differences and techni-
cal delays.
With land acquisition completed and
infrastructure work streamlined, India’s
bullet train dreams are slowly, but finally,
inching closer to reality.
SPEED
OPERATIONAL TRAVEL TIME (MUM-AHD) STATIONS
SPEED 2.07 hours 2.58 hours 12 (8 in Gujarat,
KING 320 kmph (with 2 stops) (with 12 stops) 4 in Maharashtra)
Changing gear to make way for the project. In 2022,
Last July, the National High Speed Rail Bombay High Court allowed the felling of
Corporation Ltd (NHSRCL) issued a tender 22,000 mangrove trees for the project. Late
worth an estimated ~11,000 crore for the last year, the Union environment ministry
supply of 24 E5 series Shinkansen trains for reportedly pointed to Maharashtra govern-
the corridor, with only Japanese firms ment how its battle against air pollution
allowed to bid as part of India’s agreement was also impacted due to the removal of
with Japan. trees. The resistance has died down after
According to senior executives of the change of government in the state.
NHSRC present at the review of multiple
MAHSR projects on Friday, the financial bid Rising costs
by Japanese firms Kawasaki Heavy Indus- In 2017, former Prime Minister Manmohan
tries and Hitachi Rail will be opened on Singh had called the project an “exercise in
February 29, and the contract is expected vanity”. The flagship project of the Centre
to be awarded by mid-2024 as the proposal has been criticised often by political oppo-
will be assessed in the following months. nents as one that only caters to the rich.
India and Japan previously finalised In the six years of the project’s delay, the
design changes in the trains, owing to the estimated cost has been reported to have
different climatic conditions in India. been increased by at least ~60,000 crore.
The Centre is targeting full operation of The Centre has taken a stance that it does
the Mumbai-Ahmedabad corridor by 2028, not know the cost or deadline.
a top executive of NHSRCL told Business “The anticipated timeline and final cost
Standard. can only be ascertained after award of all
In Vikhroli, a Mumbai suburb, Afcons contract packages,” Railways Minister
Infrastructure, the contractor for India’s first Ashwani Vaishnaw said in a written reply
undersea tunnel (7-km long) is working on to a question in Rajya Sabha on February 9.
triggered blasts to start the boring process. Government officials and executives
Three of the four shafts for the 21-km long aware of the developments said the cost
tunnel will be followed by insertion of a tun- had increased significantly, and the
nel boring machine. Centre might move to get revised costs
In the same suburb, 1,700 trees were cut vetted by high-level committees and
MUMBAI | MONDAY, 26 FEBRUARY 2024
DHRUVAKSH SAHA
PROJECT COST PROJECT
~1.08 trn (expected LENGTH
to have risen to ~1.7 trn) 508 km
Union Cabinet once all contracts, includ-
ing the ~11,000-crore Shinkansen train
award, had been given.
The economic internal rate of return —
an indicative benchmark calculated to
assess the economic viability of projects —
is nearly 12 per cent for the country’s maiden
bullet train. However, it is unclear how this
has been impacted with the cost escalation.
“In the case of projects like these, one
plus one is not two, but 11,” Vaishnaw said
in response to concerns about costs on
Friday, citing the economic multiplier effect
of infrastructure creation.
While no decision on fares is likely to be
announced before the operationalisation of
the corridor, it is widely understood to be
catering to the business class frequenting
between Mumbai and Gujarat, such as
those in the gems and jewellery industry.
The Bharat Diamond Bourse in
Mumbai, is located in BKC itself, where the
project starts.
“There isn’t much of a use case for high
speed rail in an economy like India, but it’s
like hosting the Olympics. It sends a mes-
sage to the world that the country is capable
of such projects, which has other economic
benefits in terms of potential investments,”
a Mumbai-based infrastructure expert, who
closely studied the project, said.
Amended surrogacy
law to boost market
potential: Experts
ANJALI SINGH
Mumbai,25February
A recent amendment of surrogacy rules
that will allow couples to use donor eggs
or sperm for giving birth is expected to
boost its market potential, according to
industry insiders.
The Centre on Wednesday amended
the Surrogacy (Regulation) Act 2021, ef-
fecting a change that comes after years
of debate and advocacy and likely to be-
nefit couples struggling with infertility.
Previously, the law mandated that both
gametes (egg and sperm) used in surrog-
acy had to be from the parents.
However, this placed hurdles for coup-
les with medical concerns such as prem-
ature ovarian failure or male infertility.
The new amendment permits
intending couples to utilise one donor
gamete, either an egg or sperm, subject
to certification by a district medical
board confirming the necessity for such
intervention. Consequently, one of the
gametes must belong to the couple,
while the other can be sourced from a
donor after examination by the board.
However, the amendment maintains
the existing criteria for single women
who are widowed or divorced — in case
of surrogacy, they are required to use
their own egg and have the option to
choose a donor sperm.
Industry feels that revenues would
go up as a result.
The amendment will add a revenue
vertical, as it would also boost chances
of conception, said Dipalie Bajaj, co-
founder and chief executive officer
(CEO) at Arva Health, a startup.
“The surrogacy market was thriving
up until there were heavy regulations a
few years ago, so this will restore a siz-
able market but coupled with regulation
to ensure minimal malpractices. The
amendment has broadened the options
available to intending parents facing fer-
tility issues, potentially increasing the
success rates of assisted reproductive
technologies.” Larger players feel this
would also protect patients’ rights, lead-
ing to better adoption.
Nitiz Murdia, managing director and
co-founder of Indira IVF, an infertility
speciality clinics chain, said that prior
to the passing of the Surrogacy
(Regulation) Act, 2021, restrictions on
the definition, process and rights of the
1
The new amendment permits intending
couples to utilise one donor gamete,
either an egg or sperm, subject to
certification by a district medical board
intending couple, mother, surrogate,
and child were not established.
“This was so, especially in light of the
mushrooming of IVF (in vitro fertilisa-
tion) and surrogacy clinics in India and
no regulations to govern the space. The
Surrogacy (Regulation) Act, 2021, adopts
a stringent approach to prevent malprac-
tices through measures such as prohib-
iting commercial surrogacy, imposing
strict eligibility criteria, and regulating
ART (assisted reproductive technology)
clinics. Thus, the latest amendment is a
testament to protecting the fundamental
rights of patients,” said Murdia.
The Act has specified that only
altruistic surrogacy is permitted, with
specific eligibility criteria for couples
and individuals. Couples must be of
Indian origin, married (with the woman
aged 23-50 and the man aged 26-55
years), with no surviving child and meet
certain health conditions. Single
women, of Indian origin, aged 35-45
years and either widowed or divorced,
must meet similar criteria.
Surrogate mothers must be willing,
altruistic, one who have been married
and have their own child, aged 25-35
years, without prior surrogacy experi-
ence or three failed attempts, and not
providing their own gametes.
Shilpa Singhal, consultant, Birla
Fertility & IVF, said there was a possibil-
ity that any loophole or unintended con-
sequences may lead to malpractices.
“For example, despite the prohibition of
commercial surrogacy, there may still
be instances of exploitation or coercion
of surrogate mothers by unscrupulous
individuals or agencies operating out-
side the regulatory framework.”