THURSDAY, 3 OCTOBER 2024

20 pages in 2 sections www.business-standard.com

NEW DELHI
~14.00
VOLUME XXXI NUMBER 145

EXPORTERS TURN JITTERY AS AS VALUATIONS TURN EXPENSIVE,

WEST ASIA CONFLICT SPIRALS QUALITY PACK STEALS MARCH ON ‘VALUE’
PUB LIS HED SI M U LT A NE O U S LY FR O M A HME D A B A D , B E N G A L U RU , B H O P A L , B H UB A N E S W A R, C HAND I G ARH, CHE NNAI , HY DE RAB AD , KO CHI , K OL K AT A, LU CK NO W , M UM B AI , NEW D EL HI A N D P U N E
2 COMMERCIAL
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NEW DELHI | THURSDAY, 3 OCTOBER 2024 1
THURSDAY, 3 OCTOBER 2024
20 pages in 2 sections www.business-standard.com
NEW DELHI
~14.00
VOLUME XXXI NUMBER 145

COMPANIES P2 COMPANIES P2

TWO-WHEELER SALES IN TOP MERGER IN FULL SWING: AIR INDIA

GEAR BEFORE FESTIVAL SEASON GROUP PLANS UNIFORM CREW POLICY
P UBLI S HED S I MU L T AN EO U S LY F R O M AHM E DA B A D , B E N G A L UR U, B H O P A L , B HUB A N E S WA R, CHAND I G ARH, CHE NNAI , HY D ERA BAD , KO CHI , K OL K AT A, L UCK NO W , M U M B AI , NE W D EL HI A N D P U N E

BANKS TO SEEK GOVT

ASSURANCE BEFORE Exporters turn jittery as VALUATIONS TURN EXPENSIVE

LENDING TO Vi Quality pack steals

Some public sector banks
are planning to seek
government
assurance that it
West Asia conflict spirals march on ‘value’
would convert part of Rising oil prices,
its dues from Vodafone
Idea (Vi) into equity, further shipping ABHISHEK KUMAR
amid reluctance by banks
to provide loans to the telecom company,
route disruptions Mumbai, 2 October

according to multiple sources familiar set to increase costs Mutual funds (MFs) are gearing up with offer-
with the matter. “Banks are still ings centered on the ‘quality’ theme, as this
hesitant to provide funding to Vodafone SHREYA NANDI investment approach is expected to rebound
Idea (Vi), but the company continues to New Delhi, 2 October following three years of underperformance
approach us. To take further steps, banks compared to the ‘value’ theme.

I
are planning to meet with the government ndian exporters are increasingly In quality investing, the focus is on stocks
soon to seek a commitment to convert anxious about the intensifying with strong fundamentals like high return on
government dues into equity,” said
one source. Vi is seeking around
conflict in West Asia, which
now directly involves three
equity (ROE) and low leverage. On the other
hand, value investing largely focuses on the
QUALITY VS VALUE Change (in %)
~35,000 crore to borrow. 4> countries — Israel, Lebanon, and valuations. n Nifty200 Quality 30 n Nifty200 Value 30
Iran. The potential for further esca- WhiteOak Capital and ICICI Prudential 76.4
lation raises fears of rising shipping have sought regulatory approval for the first-
44.6
Sebi’s six-step plan may costs, disruptions to supply chains,
and increased oil prices.
of-its-kind active quality fund. In addition,
Edelweiss MF is also poised to launch the first
40.6 36.1
21.1
shake up F&O volumes Compounding these challenges is Nifty 500 Multicap Momentum Quality 50 13.2 7.8
17.6
The Securities and Exchange Board of a workers’ strike in East and Gulf Israeli forces bombarded Beirut and parts of southern Lebanon as they ETF on October 11.
India’s (Sebi) six-step plan to curb retail Coast ports of the US, India’s largest unleashed a wave of retaliatory strikes on Wednesday PHOTO: PTI/AP A look at two of the value and quality 3-month 1-year 3-year 5-year
participation in speculative index trading partner and biggest export indices of NSE shows early signs of a percep- CAGR CAGR
derivatives may lead to a significant drop destination. PAGE 7 tible shift in the tide. Over the past three Note: CAGR is compound annual growth rate Source: NSE
in volumes — by 30-40 per cent. These Ajay Sahai, director-general and months, Nifty 200 Quality 30 Index Fund has
measures aim to reduce excessive chief executive officer of the MEA calls for restraint surged 13 per cent vis-a-vis 8 per cent rise in II,1
speculation in the futures and options Federation of Indian Export amidIsrael-Iran tensions Nifty 200 Value 30. Turn to Page 3 > Peak XV Partners resizes fund
(F&O) segment, where daily turnover Organisations (FIEO), said that while In the wake of the barrage of
often exceeds ~500 trillion and retail an immediate impact of the latest HOW GLOBAL Nikkei 225 -2.2 size on lofty valuations
missile attacks on Israel, India on
investors end up on the losing side of flare-up in West Asia has yet to be INDICES Kospi -1.2 Wednesday called for restraint from Venture capital firm Peak XV Partners,
the trade more often. II,1 > observed, oil prices could rise signif- FARED DAX* -0.4 all sides.“ It is important that the formerly known as Sequoia India and
icantly if the conflict deepens. Brent 1-day chg (in %) S&P 500* conflict doesn’t take on a wider Southeast Asia, has announced a 16 per cent
0.1
crude price has been rising for the regional dimension,” the MEA said. reduction in its 2022 vintage fund as part of a
*until 9:05pm IST Source: Bloomberg
past two days, and was near $74 a bar- strategic shift towards investing in a “measured
rel at 9.15 pm IST. “First, Iran is a key manner” amid elevated valuations in the
TO OUR READERS oil supplier, despite sanctions. Should BITCOIN FALLS 4.7%, Jaishankar meets Indian market.
The one-page commercial feature tougher sanctions be imposed on MOST IN NEARLY A MONTH P8 >
Blinken in US
on ICOLD 2024, being carried on Iran, we risk losing a crucial supplier,
GOLD SET TO BECOME CHRIS WOOD TRIMS INDIA
page 5, is equivalent to a paid-for
advertisement. No Business Standard
which would likely push oil prices
higher. Second, the regional instabil- EVEN PRICIER < II,2
External Affairs Minister S
Jaishankar met his US counterpart
BIG GUNS IN WAITING EXPOSURE, CALLS
A special page on ‘10 largecaps
journalist was involved in producing ity will exacerbate these issues,” OIL PRICES UP MORE THAN 3% Antony Blinken and held discuss-
ripe for picking’ GEOPOLITICS BIGGEST
it. Readers are advised to treat Sahai said. ions on deepening bilateral ties, the 13 >
ON SUPPLY DISRUPTION FEARS RISK TO MARKETS
it as an advertisement. Turn to Page 3 > situation in West Asia, and more.
2 COMPANIES
>
NEW DELHI | THURSDAY, 3 OCTOBER 2024 1

The concluding part of the series delves into strategies being applied by leading drug firms to battle counterfeits

Pharma companies fight fakes with smart packaging

SOHINI DAS Central Drugs Standard Control The company is now working with pro- that the cost of such packaging is roughly
Mumbai, 2 October Organisation (CDSCO), several prominent
domestic pharmaceutical companies — THE ANTIDOTE fessional investigation agencies to mon-
itor the market, identify counterfeit
five times higher than conventional pack-
aging, but he argued that this expense is
Indian pharmaceutical companies are including Torrent Pharmaceuticals, Sun dealers, and take enforcement actions relatively minimal vis-à-vis the cost of
n Sun Pharma has n Several pharmaceutical
stepping up their efforts to combat the Pharmaceutical Industries, and Alkem when necessary. manufacturing. “For a ~100 drug, the
introduced 3D security firms have implemented
problem of counterfeit drugs, employing Laboratories — issued urgent clarifica- In addition, Torrent Pharma has made packaging cost would be not more than
a variety of strategies, from packaging tions, insisting the medicines flagged strip for increased QR codes on their most packaging changes to its top brands, add- ~1-2. Companies will need to decide which
innovations to engaging private investi- were, in fact, counterfeit, and not man- protection trusted brands to aid ing QR codes and implementing high-volume, high-value brands warrant
gation agencies. The stakes are high, as ufactured by them. The substandard consumers with the advanced printing techniques as an this investment.”
n Torrent Pharma
counterfeit medicines not only harm con- drugs named by the CDSCO included authenticity of medicines added layer of protection. “Shelcal has a
periodically conducts
sumers but also tarnish the rep- popular brands such as Pan-D, specifically designed mono carton to Distinguish between NSQ and
raids, initiated litigation n Indian drug regulator, spurious: Drugmakers to CDSCO
utation of leading brands. Clavan 625, Pantocid, and against offenders CDSCO, in 2023 had called carry the QR code for primarily this pur-
Earlier in September, an Shelcal 500. pose,” the spokesperson said. Meanwhile, the Indian Pharmaceutical
for strict implementation
interstate gang was busted for To stamp out counterfeit n The firm has also The companies are also urging con- Alliance (IPA), representing the nation’s
of barcodes or QR codes
distributing fake antibiotics to drugs from the market, the hired investigation sumers to take an active role in this battle largest pharma firms, has called on the
on top 300 medicine
some government hospitals. The Indian drug regulator in mid- agencies to monitor the against counterfeit drugs. “We strongly CDSCO to make a clear distinction
drugs — which contained noth- 2023 had called for strict brands including Allegra, encourage patients and consumers to between spurious drugs and non-stand-
market, identify
ing more than talcum powder implementation of barcodes or Shelcal, Calpol, Dolo scan the QR codes to verify the authen- ard quality (NSQ) drugs. The IPA
counterfeit dealers
and starch —were being man- HOW SAFE QR codes on top 300 medicine
n New packaging
ticity of their medicines before using expressed concern over the reputational
ufactured in a veterinary medi-
cine laboratory in Haridwar.
IS THE brands such as Allegra, Shelcal,
Calpol, Dolo, and Meftal Spas. options now available
them,” Torrent Pharma advised.
Packaging reforms are gaining
damage caused when media coverage
conflates the two terms.
These fake antibiotics were then PILL ? Many firms have now where the brand name traction across the industry. Ashish Sudarshan Jain, secretary general of
circulated across several states,
including Uttar Pradesh,
PART-II implemented such QR codes
on a range of their most trusted
will glow under UV light Moghe, managing director of Nipro
PharmaPackaging, explained that new
the IPA, warned that such misrepresen-
tation can have severe consequences. “It
Uttarakhand, Jharkhand, and brands to allow consumers to options for secure packaging are now is critical that a clear distinction between
Maharashtra, before being uncovered by quickly verify the authenticity of the med- simply scanning them. We’ve also intro- told Business Standard: “We’ve periodi- available. “One can print brand names NSQ and spurious drugs is made. This
the Nagpur Rural police. icines. “Some of our leading brands now duced a 3D security strip for further pro- cally conducted raids and initiated liti- with special ink that glows under UV issue is of paramount importance, both
After a list of drugs that failed quality feature QR codes printed on the label, tection,” said Sun Pharma in a statement. gation against counterfeit drug offenders light. This can be applied to ampoules for India’s global standing and the pro-
tests was released in August by the enabling patients to check authenticity by A spokesperson for Torrent Pharma to protect the integrity of our brands.” and vials,” he said. Moghe acknowledged tection of public health,” he said.

IN BRIEF
Record office space leasing 2W sales in top gear Merger in full swing:
in 2024 Jan-Sep period: JLL Air India group plans
The first three quarters of the calendar year 2024
(January-September) witnessed office space
leasing of 53.43 million square feet in India, the
highest ever for the period, with a year-on-year
before festival season
Major players record 9-28% increase on strong domestic demand
uniform crew policy
(Y-o-Y) rise of 27.1 per cent, as per a report by JLL,
a global real estate services firm. Office space of
42.04 million square feet was leased during the same REVVING UP (unit sales)
DEEPAK PATEL
New Delhi, 2 October
period in 2023. In the third quarter of 2024 (Q3 2024), 19.89 million 2W makers Sep Y-o-Y Apr-Sep Y-o-Y
square feet of office space was leased, with Bengaluru leading the chg in % (H1FY25) chg in % As part of its
pack with a share of 24.6 per cent in the quarterly leasing activity. ongoing merger process
Hero MotoCorp 616,706 18.60 2,940,666 9.68
The city also witnessed the highest leasing activity (14.12 million
square feet) in the first nine months of 2024. BS REPORTER Bajaj Auto 259,333 28.00 1,219,298 16.00
to create a unified entity with consis-
tent policies, the Air India group is ON THE CHARTER
looking to introduce major changes n Unified leisure travel priority list for
Honda 536,391 9.06 2,881,419 NA
to policies covering room sharing, lei- pilots, cabin crew across the group
Exclusivity ends but BP to TVS Motor Co
Source: Companies
369,138 23.00 2,246,000 15.24 sure travel priority lists, allowances,
reimbursements, meal plans, and gra-
n Revised gratuity cap, allowing
payments over ₹20 lakh from Nov 12
continue with Reliance ANJALI SINGH tic sales, with 2,59,333 units sold in units, while the firm’s electric vehicle
tuities for its cabin crew and pilots,
Business Standard has learnt. n Room sharing policy introduced
Global supermajor BP’s exclusivity with Reliance Industries (RIL) Mumbai, 2 October September compared to 2,02,510 sales also saw a 42 per cent growth. These changes are expected to for Air India cabin crew from Dec 1
has ended but the energy giant will continue to pursue oil and gas units in the same month of 2024, con- Speaking on the performance of apply to all three airlines within the n International layover allowance

M
as well as mobility ventures in India with the firm owing to an ajor two-wheeler (2W) tributing to a total of 4,00,489 units the two-wheeler segment, Anurag group — Air India, Vistara, and Air increased, with added domestic
unwritten strategic partnership, BP’s outgoing India Head Sashi manufacturers of India saw sold — a 22 per cent increase overall. Singh, managing director of Primus India Express, airline executives men-
‘support allowance’ from Dec 1
Mukundan said. BP in 2011 spent $7.2 billion to acquire 30 per cent a double-digit increase in Hero MotoCorp, the world’s Partners, noted that despite the tioned. Vistara is set to merge with full-
interest in 23 oil and gas blocks of Reliance. Eastern offshore KG- domestic sales in September as largest motorcycle manufacturer, saw industry’s positive momentum in service carrier Air India by November n All three meals to be provided for
D6 block was the cornerstone of the deal that also provided for a they prepared for the festive season. its domestic sales increase by 18 per September, the real test will come in 11. On October 1, AIX Connect was crew on domestic routes from Dec 1
10-year exclusivity period. PTI Bajaj Auto, Hero MotoCorp, Honda cent in September, reaching 6,16,706 October, when retail sales take off. integrated into Air India Express, cre-
Motorcycle & Scooter India (HMSI), units. In H1FY25, Hero MotoCorp’s “The manufacturers are upbeat, ating a single low-cost airline subsidi-
and TVS Motor Company, all domestic sales increased by 9.68 per driven by strong sales growth and a ary under the Air India umbrella. Vistara flight services
WJ Towell & Co raises claim recorded increase in sales ranging
between 9 per cent and 28 per cent,
cent, reaching 29,40,666 units.
The company is gearing up for the
positive economic outlook. However,
they may have placed too much stock
Responding to queries on these
proposed changes, an Air India
to have ‘AI2’ prefix: A-I
from Blue Star in arbitration due to strong domestic demand and
upbeat market sentiment.
festive season by banking on high
demand across its 100cc, 125cc, and
at dealers ahead of the festive season.
We will have to wait and see if inven-
spokesperson said: “Following Air
India’s acquisition by the Tata group,
Air India on Wednesday said
flights operated with Vistara
Air-conditioner maker Blue Star on Wednesday said Oman’s In H1FY25, domestic sales premium segments. It expects the tory levels rise, which could lead to a competitive, contemporary, and per- aircraft will have numbers starting
WJ Towell & Co has increased claim to ~461.74 crore from it in reflected this upward trend, with a 16 positive market sentiment, on the aggressive promotional schemes to formance-linked compensation and with the prefix ‘AI2’ after the
their ongoing arbitration proceedings at International Chamber per cent rise in two-wheeler sales back of a good monsoon, to fuel boost retail sales,” Singh said. benefits policy for all employees was merger while Vistara’s planes,
of Commerce (ICC). In April this year WJ Towell & Co had filed compared to the same period in 2023. stronger retail sales in October. Hero MotoCorp’s exports rose by rolled out in April 2023, after a com- crew and service will continue
arbitration proceedings against Blue Star with the ICC claiming Most players saw high single-digit to HMSI registered a 9 per cent 21 per cent, while HMSI recorded a prehensive benchmarking exercise. to operate as before. PTI
OMR 103,18,000 (approximately ~223.6 crore) and an added double-digit growth, riding on posi- increase in domestic sales, with 34 per cent rise in overseas sales. TVS With the merger of Air India and
interest of 7 per cent on the total claim amount, the company tive sentiments in rural markets due 5,36,391 units sold in September. TVS Motor saw an 11 per cent boost in Vistara formalising, there is a need to While the suggested changes in lei-
said in a regulatory filing. PTI to good monsoons. Motor Company hit a new milestone, exports, fuelled by strong interna- harmonise these policies for employ- sure travel policy changes have been
Bajaj Auto’s two-wheeler segment registering a 23 per cent increase in tional demand, and Bajaj Auto’s ees of both organisations.” positively received, Air India’s cabin
reported a 28 per cent jump in domes- domestic sales, reaching 3,69,138 exports also climbed by 13 per cent. “As part of that exercise, we have crew members have expressed dis-
TN unit Samsung workers communicated the changes applica-
ble to Air India employees. The
comfort over the upcoming revised
room-sharing policy. Currently, Air
observe one-day token fast Institutional investments CCI okays Mankind Pharma’s
revised compensation and benefits
continue to be competitive and
India’s cabin crew are provided with
individual rooms during layovers.
Workers of Samsung India Electronics on Wednesday observed a benchmarked to industry standards,” However, from December 1, two cabin
token fast near the factory near Chennai on Wednesday, as part of
intensifying their ongoing protest which entered the fourth week. in realty rise 45%: Colliers purchase of Bharat Serums the spokesperson added.
Some of the proposed policies
crew members will be required to
share a room.
Centre of Indian Trade Unions (CITU), which is spearheading the have been welcomed by pilots and A senior airline executive clarified
protest by the employees, said they would be meeting the Director The Indian real estate sector received Country’s Competition regulator, the cabin crew, while others have sparked that Air India will aim to ensure that
of Factories in a day or two, alleging that the Korean electronic institutional investments of $1.1 Competition Commission of India, criticism. One such change concerns only crew members working on the
giant has roped in temporary workers to work in the shop floors in billion during the third quarter of CY approved Mankind Pharma’s the leisure travel policy, which allows same flight share rooms. “The issue
view of the strike. PTI 2024 (Q3 2024), according to a ~13,630 crore ($1.6 billion) pilots and cabin crew to access dis- arises when one crew member has
research by Colliers, a global real acquisition of vaccine-maker counted tickets for personal travel gone to sleep at 12 am, and another,
estate investment manager. The Bharat Serums and Vaccines. while off duty. Previously, each airline coming from a different flight, arrives
Dr Reddy’s, Hetero sign pact sector witnessed 45 per cent growth in
investments year-on-year. Of the total
Mankind Pharma signed an
agreement to acquire Bharat Serums from
within the Air India Group prioritised
its own employees for these dis-
at 4 am and disturbs the first to enter
the room. We will do our best to pre-
with Gilead for HIV drug investments in the quarter, the office segment accounted
for 54 per cent ($616.3 million), followed by residential,
a number of funds owned by private equity giant Advent
International back in July.
counted tickets.
Under the proposed new unified
vent this from happening”.
Vistara’s cabin crew have already
Hyderabad-based Hetero and Dr Reddy’s Laboratories have signed which had a 33 per cent share ($384.8 million). The proposed acquisition also requires approvals from policy, a single priority list will be been sharing rooms during layovers
a non-exclusive, royalty-free voluntary licensing agreement with Domestic investments remained at $0.5 billion, the Turkish Competition Authority and Federal Ministry of implemented across the entire group. under their internal policy. “As part of
Gilead Sciences Ireland UC to manufacture and distribute accounting for 44 per cent of the total inflows. Foreign Economic Affairs and Climate Action. This means all pilots and cabin crew, the merger process, the group has now
lenacapavir, a breakthrough HIV treatment drug, in 120 primarily investments stood at $0.6 billion during the same period. The acquisition will expand Mankind’s product irrespective of their airline, will be established a uniform policy regarding
low- and lower-middle-income countries (LMICs), including India. Overall, the sector received $4.7 billion in institutional portfolio and establish itself as a market leader in Indian treated equally when it comes to room sharing,” the executive added.
Researchers estimate that Indian generic manufacturers could investments in the first nine months of 2024, marking an women’s health and fertility segment, Rajeev Juneja, access to discounted tickets on any
produce the drug for as little as $100 per person per year, with annual increase of 3 per cent. PRACHI PISAL managing director of Mankind Pharma said. BLOOMBERG carrier within the group. More on business-standard.com
further reductions possible as demand increases. BS REPORTER

Zydus Lifesciences gets USFDA Indian university alumni titans of US unicorn club
nod for prostate cancer drug
Zydus Lifesciences on Wednesday received approval from the US SURAJEET DAS GUPTA each with 11 founders. IIT Kanpur ranks third
health regulator, US Food and Drug Administration (USFDA), to pro-
duce a generic prostate cancer treatment drug. The firm has recei-
New Delhi, 2 October
MADE IN INDIA US unicorn founders
with nine founders, while IIT Delhi shares
the fourth spot with eight founders, alongside
ved tentative approval to manufacture Enzalutamide tablets (40 mg US startup unicorn founders who studied in IIT Kanpur 9 The Hebrew University of Jerusalem, the
and 80 mg). The product would be manufactured at the group’s India, Israel, and Canada compete for top hon- University of Toronto, McGill University,
Ahmedabad site. These tablets are androgen receptor inhibitors ours among 74 non-US universities, each prod- IIT Delhi 8 and the University of Oxford.
indicated for the treatment of castration-resistant prostate cancer ucing at least one unicorn founder in the US. Other Indian universities on the list
and metastatic castration-sensitive prostate cancer. PTI Israeli universities lead the pack with IIT Bombay 6 include IIT Madras, IIT Kharagpur, the Birla
Universities

42 unicorn founders from five institutions, IIT Madras 4 Institute of Technology and Science (Pilani),
followed closely by India, with 40 founders Source: Ilya
Banaras Hindu University (BHU), and the
Dharavi Project: Adani to from eight universities. Canada follows with
37 founders from six universities, while the
BITS Pilani 4 Strebulaev
and Stanford
University of Madras. Globally, INSEAD in
Fontainebleau, near Paris, has produced five
build houses on salt pan land UK has 25 founders from six universities.
China has seven founders, all from
IIT Kharagpur
BHU
3
3
Graduate
School of
Business
unicorn founders, Vrije Universiteit
Amsterdam in Brussels has four, and
Maharashtra state government approved the acquisition of 256 Tsinghua University. Venture Universidad Complutense Madrid and
Capital
acres of salt pan land in the north-east of Mumbai in a boost to The research, released in September, was University of Madras 3 Initiative uKTH Royal Institute of Technology in
the Adani Group’s project to redevelop Dharavi, one of Asia’s conducted by Ilya Strebulaev, a professor at Stockholm have three each, among others.
largest slums. The salt-pan land will be acquired from the central Stanford, with support from the Stanford The five IITs — Delhi, Kanpur, Kharagpur,
government and leased to the Dharavi Redevelopment Project , Graduate School of Business Venture Capital Of these, 266 (21 per cent) founders Tel Aviv University tops the list, producing Madras, and Mumbai — collectively account
which is rehabilitating the 620-acre neighborhood in the heart of Initiative. The study examined 531 US completed their education at non-US 16 unicorn founders in the US. This is followed for 30 unicorn founders in the US, reflecting
the financial capital, according to a September 30 release from the unicorns (from 1997 to 2019), identifying the universities, and the study identified by Technion — Israel Institute of Technology their strong influence on the US and India’s
state’s cabinet. BLOOMBERG universities where 1,263 founders had studied. 74 such institutions. and the University of Waterloo in Canada, startup landscape.

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.
NEW DELHI | THURSDAY, 3 OCTOBER 2024 COMPANIES 3 <

Capital goods firms bag AI-powered PCs will Anil Ambani

firm partners
drive 5-10% shipments Bhutan’s
~2 trillion orders in H1 by Nov, says Asus exec
DHI for solar,
hydro projects
Defence, international biz, private and public power sectors key contributors Marking its first foreign ven-
ARYAMAN GUPTA ture, Anil Ambani-led
AMRITHA PILLAY New Delhi, 2 October tender in the commercial PC
PC MARKET SHARE Reliance Group on
Mumbai, 2 October
STRONG SHOWING (in ~crore) Taiwanese personal computer
market but witnessed a
131.7 per cent Y-o-Y growth in Y-o-Y comparison (%)
Wednesday said it has
entered into a partnership

T
he first half of the current finan- (PC) maker Asus has this segment in Q2. Asus  HP  Lenovo  Dell with Druk Holding and
Top firms’ order inflow FY24 H1FY25
cial year was robust for capital and announced an ambitious plan became the second-largest  Acer  Asus  Others Investments (DHI), the com-
engineering firms as they saw Bharat Heavy Electricals 77,907 36,488 for artificial intelligence (AI)- player in the consumer seg- mercial arm of the Royal
fresh order wins worth more than ~ 2 tril- Larsen & Toubro 3,02,800 1,18,436 powered PCs to make up 5-10 ment behind HP in 2023. Government of Bhutan, to
lion, despite the election interval. per cent of its total shipments “In the second half of 2024, jointly develop solar and
Kalpataru Projects International 30,022 11,000 18.80 31.10
Awarding activity for others in the by the end of 2024. However, we will be a strong no. 2 (con- hydropower projects.
infrastructure space was a mixed bag, Kamani Engineering Corporation 18,102 12,300 with demand surging, the sumer) brand in India, and we In its statement, the
with a demand lull in cement and weak company now expects to reach are preparing to challenge the 7.20 group did not disclose the
Hindustan Aeronautics NA 26,000 Q2CY2023
awarding activity for the roads sector. this target ahead of schedule, no. 1 position in the next two investments for the planned
The top five firms in the engineering
Source: Company disclosures
aiming for November instead. years. By the end of 2024, we 11.40 500 megawatt (Mw) solar and
space - Larsen & Toubro (L&T), The company expects the aim to cross the 20 per cent 16.20 770 Mw hydro power capac-
15.30
Hindustan Aeronautics, Bharat Heavy ongoing festival season to market share benchmark, up ities. However, it added, this
Electricals (BHEL), KEC International, boost sales by 5-10 per cent from 18 per cent last year,” Su is the largest foreign invest-
Kalpataru Projects International (KPIL) compared to the previous year, said. According to Su, Asus ment in Bhutan’s renewable
– have disclosed combined fresh orders driven by a new refresh cycle, aims to capture 25-30 per cent energy sector.
worth ~2.04 trillion, according to data col- a senior executive at the firm market share in the consumer 14 31.70 To set up these capacities,
lated from the BSE disclosures. said. “During the pandemic, PC market within the next two the Anil Ambani group said
The order inflows were largely from many consumers were forced years. To achieve this, the com-
7.10 it has newly established
defence, international businesses, and to buy PCs. This resulted in a pany is doubling down on Q2CY2024 Reliance Enterprises, a 50:50
the private and public power sectors. slight decline in PC sales in expanding its offline retail foot- 14.70 subsidiary of Reliance
In the first half of the last financial 2022 and 2023. In 2024, print. “Currently, India’s PC Infrastructure and Reliance
year, L&T, KEC International, BHEL, and however, a new purchase cycle penetration rate is just 11 per 14.80 17.50 Power. The new subsidiary
KPIL reported an order intake of were at ~36,480 crore, higher by 9 per “The National Highways Authority of has begun, with customers cent. We want to target the will spearhead the green
~2.09 trillion. The figures are not compa- cent from a year ago period. HAL’s man- India (NHAI) road awards remained now looking to upgrade their remaining 89 per cent of energy initiatives.
rable as companies do not disclose all agement at the start of FY25 said they muted in September 2024 with project devices,” Arnold Su, vice- households, rather than com- According to sources, this
order wins to the exchanges. The H1FY24 expect new orders worth ~47,000 crore awards of just 10km. Year to date, awards president — consumer and peting within the existing would entail an equity part-
data for HAL was not available. to materialise in a one-year timeframe. by the NHAI at ~159km are down one per gaming PC, system business 11 per cent… By the end of 2025, nership of 50 per cent for
For the September-2024 ended In a report released on Tuesday, rating cent from a year ago,” Brokerage firm group, Asus India, told our end goal is to be able to NEXT YEAR, AI-POWERED solar capacities and 51 per
quarter (Q2), L&T disclosed to the BSE agency Crisil said H1FY25 upgrades Nuvama noted in a report. Business Standard. service 600 districts across PCs WILL BE THE MAIN cent for hydro capacities
order wins worth up to ~47,500 crore. were led by the construction EPC, Executives from the cement sector Su added that this is also India,” said Su. coming from DHI.
L&T does not share the exact value of renewable energy, capital goods and also confirmed that increased activity the first year for AI PCs, so As much as 70 per cent of DRIVER OF GROWTH FOR JADEN MATHEW PAUL
each order win but a range. The pharmaceutical sectors. was yet to be seen. “Cement is one step many consumers are seeking the company’s sales currently THE OVERALL BUSINESS”
~47,500 crore is the combined upper “Capital goods upgrades were mainly behind in the timelines of contract to upgrade to more powerful come from offline channels.
ARNOLD SU
range. For H1FY25, L&T's order wins
stand at ~1.18 trillion.
because of improved revenue visibility
from the strong order book, with an
awarding. Once the construction
contractors receive orders, only after the
devices. “Next year, AI PCs will
be the main driver of growth
The PC maker will open its
300th Asus exclusive store on
V-P – Consumer & Gaming PC, Adani merges
Others such as BHEL and HAL uptick in private capex and infra build- cement sector comes into play. So, for the overall business,” Su Thursday. In addition, the
System Business Group, Asus India step-down
reported order wins of ~27,000 crore and
~26,000 crore, respectively in Q2. For the
out,” the report added. The capital goods
sector buoyancy is yet to show for the
activity in the cement industry is not yet
visible,” said Deepak Khetrapal, manag-
said. India’s PC market, which
includes desktops, notebooks,
company operates around
1,500 ‘shop-in-shops’ — retail
arms with ANIL
entire H1FY25 period, BHEL new orders roads and allied sectors such as cement. ing director of Orient Cement. and workstations, grew 7.1 per outlets that sell Asus PCs. Adani group has merged
cent year-on-year (Y-o-Y) to Asus has also partnered two step-down
3.39 million shipments in the another 2,500 small dealers subsidiaries with green
second quarter (Q2) of calendar who sell the company’s pro- hydrogen and wind
> FROM PAGE 1 year 2024, according to ducts. In total, there are more turbine manufacturing
data from the International than 4,000 shops in India sell- firm Adani New Industries
Data Corporation (IDC). ing Asus products. Limited (ANIL), according
Asus holds the fifth spot in “The Indian market is not to a stock exchange filing

Dockworkers’ strike in US the Indian PC segment, with a

market share of 7.1 per cent
during Q2 this year, down
just for entry-level products.
It is also for the latest tech-
nology and our premium
on Wednesday. Adani
Infrastructure and
Developers operates as a

adds to woes of exporters

slightly from 7.1 per cent in the offerings. Catering to this real estate company,
same period last year, accord- demand will further help us constructing and
ing to IDC. The Taipei-head- increase our market share,” developing thermal and
quartered firm is not a con- Su added. solar power projects. PTI
Moreover, any disruption in (ILA) announced a strike on India. He emphasised the Syria) — besides indirectly
the flow of goods through the Tuesday, halting operations at need for the rate-setting com- impacting Jordan and Iran —
Strait of Hormuz — located 36 major US ports along mittee to assess the potential key Gulf nations like Saudi
between Oman and Iran — the East Coast and the Gulf impacts of the crisis on oil Arabia and the UAE have
will lead to increased of Mexico. prices and the broader econ- remained uninvolved, allow-
shipping costs. “Even air These ports handle nearly omy amid uncertainty regard- ing India’s trade with them to
routes are being affected fol- 55 per cent of container traffic ing the conflict's duration. flourish.
lowing Iran’s missile attack entering and leaving the US, “Central banks must “Trade with war-affected
(on Israel). Supply chain dis- including the largest 14 ports remain vigilant and incorpo- countries has suffered major
ruptions are likely, and gen- from Maine to Texas. rate this situation into their declines, and rising shipping
eral investment sentiment According to a report by rate decisions,” he added. costs due to disrupted routes
may also suffer,” he added. Moody’s Analytics, countries India's trade with West are adding further strain.
Arun Kumar Garodia, like India, Indonesia, and Asia is crucial, particularly as While India must stay vigilant,
chairman of the South Korea, it imports crude oil from Iraq, there may be relief if disrup-
Engineering According to a which heavily rely the United Arab Emirates tions along the Red Sea are
Export report by Moody’s on these ports, are (UAE), and Saudi Arabia, with resolved,” GTRI said.
Promotion Analytics, India, exposed to the Gulf Cooperation Council In the first seven months
Council of India Indonesia, and greater economic (GCC) countries representing of 2024 (January-July),
(EEPC), com- South Korea, repercussions, the bulk of this trade. Among exports to Israel, Jordan, and
mented on the which heavily rely while more these nations, the UAE stands Lebanon witnessed consider-
dire implications on these ports, diversified out as India’s third-largest able contractions. Exports to
of the unending c are exposed to trading econ- trade partner. Israel plummeted by 63.3 per
onflicts in the greater economic omies such as Among the other West cent to $1.3 billion, signifi-
region. “We are repercussions Hong Kong, Asian countries, the value of cantly affecting items such as
closely monitor- Singapore, and the trade with Iraq and Israel organic chemicals, petroleum
ing the situation, Malaysia is on the higher side. products, and diamonds,
hoping for no further escala- are likely to fare better. The Global Trade Research according to commerce
tion. A war could unfold in Madan Sabnavis, chief Initiative (GTRI), a Delhi- department data.
unpredictable ways and economist at Bank of Baroda, based think tank, reported Exports to Jordan fell by 38
would undoubtedly disrupt remarked that the ongoing that the Israel-Hamas war, per cent to $638 million,
trade,” Garodia warned. West Asian conflict which began in October 2023, while those to Lebanon
Adding to the exporters’ further supports expectations has caused significant disrup- declined by nearly 7 per cent
troubles, dockworkers repre- of a pause by the reconstituted tions throughout West Asia. to $198 million.
sented by the International Monetary Policy Committee Although the conflict has (With inputs from Subrata
Longshoremen’s Association (MPC) of the Reserve Bank of spread to Lebanon (and partly Panda & Dhruvaksh Saha)

Quality pack to reduce > BS SUDOKU #4394

risk in midcap and

smallcap allocation
The shift in trend comes 2018 and CY 2020 but has
years after value took a lead underperformed lately. It’s
over quality. For the one-year important for investors to
period, Nifty 200 Value 30 is remember that 'winners
still ahead of Nifty 200 rotate,” he said, adding that
Quality 30 with 76 per cent while the AMC has planned
and 45 per cent gains respec- the fund, the launch depends
tively. Radhika Gupta, man- on regulatory approval.
aging director and chief Last month, a study con-
executive officer, Edelweiss ducted by PGIM India MF
MF, said the decision to showed that companies that
launch the ETF is driven by fulfilled quality and growth
market dynamics. metrics outperformed the
“We decided to launch the rest of the stocks in NSE 500
fund based on the observa- between June and August.
tion that the quality factor This is in contrast with the
has started performing better performance reported from
now. In addition, we thought April 2023 to May 2024.
a quality filter will help The study pointed out
reduce the risk, especially that the shift is underpinned SOLUTION TO #4393
with respect to the midcap by the valuation comfort in
and smallcap allocation. This quality and growth com- Hard: ««««
can help avoid stocks that panies’ vis-à-vis value stocks Solution tomorrow
have run up ahead of their along with the expected
fundamentals," she said. reversal in interest rate cycle. HOW TO PLAY
According to Manuj Jain, SBI MF, the largest fund Fill in the grid so that
head, product strategy at house, has also been high-
every row, every
WhiteOak Capital AMC, qual- lighting the shift in trend in
ity investing makes sense its reports. “As a style, quality
column and every 3x3
during uncertain market has begun to do well with the box contains
conditions, given the resil- top quintiles on quality out- the digits 1 to 9
ient business models of such performing the bottom quin-
companies. “The quality tiles in August,” it said in its
theme performed well in CY September factsheet.
4 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | THURSDAY, 3 OCTOBER 2024 1

IN BRIEF
Rajan against excluding Banks may reach out NFRA to seek views from
Big 5 on second report
food from headline inflation
Amid suggestions for excluding food inflation while setting
benchmark interest rates, former RBI Governor
to govt on converting Authority in process of finalising audits for 3 firms
Raghuram Rajan (pictured) said that he was
KEEPING AN EYE
against excluding food prices from headline
inflation, as it would erode the ‘great faith’ of
people in the central bank, which has been
mandated by the government to keep inflation
in check. Rajan was responding to a question on
Vi dues into equity n NFRA to assess whether audit firms
have incorporated suggestions made
in last financial year
suggestions made in the Economic Survey 2023-24 HARSH KUMAR n Audit watchdog found that firms

ILLUSTRATION: AJAY MOHANTY

for excluding food inflation while setting New Delhi, 2 October have taken steps to improve audit
benchmark interest rates. PTI quality, but points out larger scope

S
ome public sector banks for improvement
are planning to seek assur- n Reports to be shared with firms for
Govt discussing scheme for ance from the government
that it would convert part of its
their comments
n Final reports, with comments from
‘Made in India’ label dues lying with Vodafone Idea
(VI) into equity, according to audit firms, expected by November-end
The government is discussing a proposal to formulate a scheme for three senior executives of banks
‘Made in India’ label with a view to promote brand India in the who spoke to Business Standard weaknesses should be treated as
global markets, an official said. The official said that a high level on condition of anonymity. Their RUCHIKA CHITRAVANSHI areas of potential improvement and not as
committee is examining the details of the scheme. banks have been approached by New Delhi, 2 October a negative assessment of the work of the
The objective is to create a strong brand identity for India, similar the cash-strapped telecom com- audit firm unless specifically indicated
to how ‘Made in Japan’ or ‘Made in Switzerland’ evokes about pany for fresh loans. The National Financial Reporting otherwise.
specific images and qualities. PTI “Banks are still hesitant to Authority (NFRA) will soon seek comments One of the more serious issues raised by
provide funding to VI, but the FUNDING annually from FY27
AGR liability: Vi’s total
from Big Five audit companies and share the NFRA in its report is about violation of
company keeps approaching us.
HESITATION debt is ~2.09 trn,
its second draft inspection report assessing section 144 of the Companies Act, which
Prashant Kishor launches To move forward, banks are plan-
ning to meet with the govern- Funding needs: Vi seeks including ~1.39 trn in
whether they have incorporated the sug- prohibits firms from providing certain non-
gestions it made in the last financial year, audit services to audit clients.
spectrum payments
Jan Suraaj Party ment to request a commitment
to convert its dues into equity in
~35,000 cr but faces
reluctance from banks Legal challenges: SC
according to people in the know. The Big Four firms had welcomed the
Sources said the NFRA has found that suggestions of the regulator to enhance
Political strategist-turned-activist Prashant VI,” one of the sources said. Debt reduction: Its bank rejected AGR curative the firms have taken steps to improve audit trust in audit quality, supporting efficient
Kishor (pictured) on Wednesday announced The telecom giant is seeking petitions, impacting quality, but it has pointed out a capital markets.
debt fell to ~4,800 cr
the launch of his political outfit Jan Suraaj to borrow approximately ~35,000 telecom liabilities larger scope for improvement. The NFRA, the audit watch-
Party. Kishor also named Manoj Bharti, a crore, but most banks are wary of
in Q1FY25 The authority is also in the The NFRA report dog set up by the government
Madhubani-born former Indian Foreign extending credit, particularly as Government dues: Subscriber trends: It process of finalising the reports highlights serious in 2018, is planning to increase
Service Officer, as working president of the VI has struggled to raise funds Telco owes ~12,000 cr by lost 2.5 mn users last of three other audit firms that violations of the number of audit firms it
party. “We will compel banks to make available from other sources. The bank March 2026, ~43,000 cr quarter are facing their first inspections Section 144 of the inspects annually to around 30.
to the state capital in proportion to savings executive pointed out that VI’s this year. The reports Companies Act, It will cover financial state-
deposited by its people. At present, it seems outstanding dues to the govern- would be shared with the firms which bans firms ments of four companies per
money saved by Biharis is being put to ment remain a significant hurdle: holds a 33.4 per cent equity stake crore in AGR liabilities owed to for their comments as well, the from offering audit firm in keeping with inter-
use elsewhere,” Kishor said. PTI “If the government can provide in VI following the conversion of the government. sources said. certain non-audit national standards.
clarity on this, we may consider ~16,000 crore in interest dues, is Last month, VI’s chief execu- All final reports, which will services to their This year, the NFRA is con-
lending.” An e-mail request to the the company’s largest creditor. tive officer, Akshaya Moondra, include comments from the audit clients ducting inspections of eight
SC to rule on caste-based telecom provider for comment
remained unanswered until the
However, since then, despite
remaining the biggest single
told analysts that the company
had initiated a “fresh dialogue”
audit firms, are expected by the
end of November.
firms, of which the Big five
firms are facing a second round
discrimination in jails today time of publication.
VI has made some strides in
holder of stake, the government's
ownership of the telco has dilut-
with the government to resolve
the AGR dues issue. He main-
“The report has been shared
with some of the firms that were audited
of inspection.
Going forward, the firms are expected
The Supreme Court (SC) is scheduled to pronounce its verdict on reducing its debt, with the com- ed to 23.1 per cent, after Vi con- tained that VI's long-term busi- last year and, in the coming days, the draft to be selected based on various parameters
Thursday on a plea that had alleged that prison manuals of some pany’s obligations to banks and cluded a follow-on public offer ness plans and revival strategy report will be sent to all others for their including the extent and significance of the
states in the country encourage caste-based discrimination. financial institutions decreasing (FPO), and multiple rounds of remain “unaffected” by the comments. We are in the process of finalis- public interest involved, for instance, the
According to the cause list of October 3 uploaded on the apex court to roughly ~4,800 crore in the preferential share issuing to ven- pending outcome of a curative ing the draft,” a source said. number of firms being audited by the firm.
website, a Bench comprising Chief Justice D Y Chandrachud and first quarter of 2024-25, down dors and owners. These dues petition. He also expressed opti- On December 22, the NFRA released the Meanwhile, the NFRA is pushing for
Justices J B Pardiwala and Manoj Misra is slated to deliver the from ~9,200 crore a year earlier. stem from deferred adjusted mism about completing the inspection reports for audit firms BSR & Co, adoption of the revised International
judgement on the petition. The apex court had in January this year However, it faces a looming pay- gross revenue (AGR) and spec- company’s debt-raising efforts Deloitte Haskins & Sells, SRBC & Co, and Standard on Auditing 600 for audits of list-
sought responses from the Centre and 11 states, including Uttar ment of ~12,000 crore to the gov- trum instalment payments. within two months, noting that Price Waterhouse Chartered Accountants, ed companies and Public Interest
Pradesh and West Bengal, on the plea. PTI ernment between October 2025 As of the first quarter of FY25, an independent third party had followed by Walker Chandiok & Co. Entities, except Public Sector Enterprises,
and March 2026, with an addi- VI reported total debt of ~2.09 already conducted a techno-eco- While highlighting several gaps across Public Sector Insurance Entities and
tional ~43,000 crore in annual trillion. This includes ~1.39 tril- nomic evaluation. audit firms related to documentation and Public Sector Banks and their branches.
THDCIL to invest ~8.8K cr in payments due from FY27 to FY31.
The government, which
lion in deferred spectrum pay-
ment obligations and ~70,320 More on business-standard.com
violation of Standards on Auditing, the The Authority has invited public com-
NFRA stated in a report that the areas of ments for the same.
1,600 Mw project in Raj
State-owned THDCIL signed an agreement with the Rajasthan
government to set up 1,600 Mw of pumped storage projects at an
investment of ~8,800 crore. The MoU aims for the development of
two pumped storage projects (PSPs) of 800 Mw each at Bisanpura
DAILY UPI GAINING
20 24 India, Brazil push
20.64
to finalise GBA
in Bundi and another at Rampura Tonk, THDC India Ltd (THDCIL)
FURTHER
said. A total of 1,600 Mw capacity of PSPs will involve an
investment of ~8,800 crore, THDCIL CMD R K Vishnoi said. PTI TRANSACTIONS UP GROUND

Over 500 kg of cocaine seized 8x SINCE PANDEMIC n Volume

(in bn) (LHS)
15
15.04
18
charter by yr-end
in Delhi’s biggest drug bust Average daily transactions on India’s unified
payments interface (UPI) surged over eightfold, from Value
SUBHAYAN CHAKRABORTY
New Delhi, 2 October
The Delhi Police made one of the biggest drug busts ever seen in 60 million in September 2020 to over 500 million by (in ~ trn) (RHS) 10 12
10.55
the city, seizing over 560 kilograms of cocaine estimated to be September this year since the pandemic. India and Brazil have taken up
worth around ~2,000 crore, officials said. A Delhi Police Special Cell In September 2024 alone, UPI processed 15.04 the delay in setting up the
team nabbed four people from South Delhi’s Mehrauli and billion transactions, valued at ~20.64 trillion, Global Biofuel Alliance (GBA)
confiscated the consignment weighing over 565 kilograms. according to the National Payments headquarters and establish-
6.78
The officials said those arrested had planned to sell the cocaine in Corporation of India (NPCI). Year-on-year, 5 6 ing a charter, and agreed to
Delhi and the National Capital Region. PTI UPI transaction volume jumped 42 per cent establish both by the end of
from 10.55 billion in September 2023. This 3.29 the current year, sources said.
amounted to ~157.8 million in total 3.65 The issue was discussed
Climate activist Wangchuk transaction value in September last
year. Average daily transaction 1.8
during Petroleum Minister
Hardeep Singh Puri's meeting
QUICK RUNDOWN
0 0
continues fast in detention volumes grew from 351.85 million in
September 2023. Sep '20 Sep '21 Sep '22 Sep '23 Sep '24
with his counterpart in
Brasilia last month, they n Global Biofuel Alliance,
Climate activist Sonam Wangchuk and 150 other protestors from The platform’s growth added. The GBA was launched in 2023, still lacks a
Ladakh who are under detention on Wednesday continued their is matched by a steady rise launched on September 9, formal governance setup
indefinite fast, saying they find their rights “trampled upon” on in the number of participating 174 259 358 492 2023, on the sidelines of the n India suggested workstreams
Gandhi Jayanti. Wangchuk was leading ‘Delhi Chalo Padyatra’, banks, with 608 banks live on G20 Summit in New Delhi.
to boost biofuel trade
which began from Leh a month ago. They were detained on UPI as of August 2024, up But more than a year later,
Monday night. In a statement issued on Wednesday morning, from 174 in 2020. Banks live it remains without a charter, and adoption
Jigmat Paljor, Coordinator Apex Body, said their detention, which is AJINKYA KAWALE Note: *608 live as of August 2024 Source: NPCI a fixed governance structure, n GBA has 24 member nations,
continuing for over 24 hours, is illegal. PTI or a permanent secretariat. with growing interest from
“Both sides recognised the Africa and the Caribbean
importance of quickly resolv-
n Biofuels could grow 5x
ing the pending work on the
by 2050, creating big

Karnataka, UP top list of verified health care facilities GBA. A year-end date is being
tentatively eyed for clearing
the pending work on securing
a headquarters, and establish-
opportunities for India

expand the size of formal bio-

At the bottom of the list are Odisha, Tamil Nadu and Delhi, which have the lowest levels of coverage ing a charter,” an official
source said.
fuel markets and better map
demand and supply.
SANKET KOUL Pradesh stands at 14.7 per cent and 48.9 per However, the multi-stake- India and Brazil were the
New Delhi, 2 October cent, respectively. holder alliance of govern- main drivers of the 24-nation
At the bottom of the list are Odisha, Tamil ments, international organisa- grouping, which had seen 24
Karnataka, Uttar Pradesh, Rajasthan, Nadu, and Delhi, which have the lowest tions and industries has diverse countries, from
Maharashtra, and Andhra Pradesh are the levels of facility coverage. adopted a work plan. Singapore, Argentina, and
top five states in terms of the absolute While Delhi has verified 1,590 facilities, Focussing on assessing UAE, to Mauritius and
number of health care facilities verified in representing 4.3 per cent of the 37,228 country landscapes, drafting Bangladesh signing up.
the Health Facility Registry (HFR), according facilities in the NHRR dataset, Tamil Nadu’s policy frameworks, and con- Among the G7 nations,
to data available on the Ayushman Bharat coverage stands at 2.3 per cent, with only ducting biofuel workshops Italy and the United States are
Digital Mission (ABDM) dashboard. 1,694 verified out of 73,941 facilities in the were identified as immediate part of the alliance.
However, three out of these five states lag state, according to NHRR data. goals for the GBA. While major energy pro-
behind in saturation rates compared to the Odisha has verified just six facilities out of These goals were discussed ducers such as Russia, China
facilities enumerated in the National Health 16,867, placing it last on the list. at a key meeting of the body and Saudi Arabia have
Resource Repository (NHRR) data, which
was established in 2018 to collect
STATE SCAN Low saturation rates: A persistent issue
“Low saturation rates under the HFR are
held on the sidelines of the G7
deliberations in Brazil in April,
remained unconvinced of the
merits of joining the bloc, it
information on all public and private health HEALTH FACILITY Verified facilities according to affecting the timely implementation of the a Petroleum and Natural Gas has generated special interest
care institutions across the country. VERIFICATION register in many states, with many public Ministry official said. India has from African nations.
The HFR is a new repository of health HFR NHRR Saturation HFR NHRR Saturation health facilities still awaiting registration,” suggested three potential Apart from G20 member
facilities that aims to create a national digital
Top 5 2018 rate (%) Bottom 5 2018 rate (%) an official said. workstreams — to support bio- South Africa, non-G20 nations
health register of both public and private Karnataka 60,711* 49,337 100.00 Odisha 6 16,867 0.03 To address this issue, the National Health fuel trade, increase awareness like Kenya and Uganda also
health facilities. This includes hospitals, Authority (NHA), which is also the about them, and identify sup- make up the list, while
Tripura 2,495 3,073 81.20 Tamil Nadu 1,694 73,941 2.30
clinics, diagnostic laboratories, imaging implementing body of ABDM, wrote to all port mechanisms for Tanzania is keen on joining,
centres, and pharmacies of both modern and Chhattisgarh 10,403 15,048 69.10 Delhi 1,590 37,228 4.30 state governments in August 2024 to fast- enhanced adoption of biofu- sources have said.
traditional systems of medicine. track the registration of state-run public els. “These developments also Caribbean island nation
Among the top five states with verified
Rajasthan 33,228 54,083 61.40 Maharashtra 21,964 149,572 14.70 health facilities. came up during the latest visit. Jamaica has been the latest to
health care facilities in the HFR, only Himachal 3,989 7,069 56.40 Haryana 4,659 26,474 17.60 “The NHA also offers a solution for bulk Both countries feel there has show an interest to join the
Karnataka and Rajasthan have covered more Pradesh uploading of public facilities into the ABDM been good progress on the seg- GBA, the Ministry of External
than 50 per cent of the institutions in the Note: HFR refers to Health Facility Registry; NHRR refers to National Health Resource Repository; * Karnataka has verified
ecosystem by state mission directors. In this mented approach towards Affairs had said on Tuesday.
NHRR database. more facilities than those in NHRR data Source: ABDM Dashboard, as of 5 pm, October 2, 2024 regard, we request that you either make use GBA goals that has been taken According to the
Karnataka is the only state with the of the bulk upload feature or at least convey so far,” the official added. International Energy Agency
highest number of verified facilities in the saturation rates of 81.2 per cent and 69.1 per facilities. However, this only covers 33.3 per instructions to all state government-owned (IEA), biofuels have the poten-
country at 60,711 and 100 per cent saturation cent, respectively. cent of the state’s 178,715 facilities in the institutions to get themselves registered,” Interest growing tial to grow by 3.5-5-times by
of the facilities in the state according to Uttar Pradesh, on the other hand, is the NHRR dataset. said the communication from Basant Garg, The GBA aims to expedite 2050. This is due to the net-
NHRR data. It is followed by Tripura and second-best-performing state in terms of Similarly, the coverage of verified additional chief executive officer of the NHA, uptake of biofuels worldwide, zero targets, thus creating a
Chhattisgarh, which have coverage absolute numbers, with 59,438 verified facilities in Maharashtra and Andhra to all state governments. set standards for biofuel, huge opportunity for India.
 .
NEW DELHI | THURSDAY, 3 OCTOBER 2024 5 <

India to stay on high growth path; Smart Dams to usher in

sustainable growth: Experts @ ICOLD 2024
The 92nd ICOLD Annual Meeting of the Paris based - International Commission of Large Dams (ICOLD) and International symposium was successfully held in New
Delhi, attracting over 6000 delegates from around the world in event spanned over 5 days with the theme "Dams for People, Water, Environment & Development"

ndian economy will continue its march on high tial contributions to the sustainable growth of ing of International Commission of Large Dams

I growth trajectory in times to come felt most

experts gathered at the 92nd Annual Meeting
of International Commission of Large Dams
(ICOLD) held recently in New Delhi from 29th
September to 3rd October, 2024, shared Michel
India's agriculture, water supply, and power sec-
tors, effectively meeting the escalating demands
of a dynamic nation,” he added.
The International Commission on Large
Dams (ICOLD) is a non-governmental interna-
(ICOLD) held recently in New Delhi from 29th
September to 3rd October, 2024 was a resound-
ing success.”
Here, Prof. Arun Kumar said, “Since, the late
sixties, focus was put on subjects of current con-
ICOLD 2024 - International
Symposium inaugurated by
Chief Guest - Ms. Debashree
Mukherjee, Secretary,
Secretary, Ministry
Ministr y of Jal
EXPERTS TALK
Michel Lino, President of ICOLD
Lino, President of ICOLD. “The theme of the tional organization which provides a forum for ex- cern such as dam safety, monitoring of perform- Shakti on 1st October 2024
ICOLD-24 held in Incredible India with the theme of
ICOLD 2024 International Symposium is ‘Dams change of knowledge and experience in dam ance, reanalysis of older dams and spillways, "Dams for People, Water, Environment & Develop-
for People, Water, Environment & Development,’ engineering. ICOLD is a leader in setting stan- effects of ageing and environmental impact. More will play an instrumental role in future starting ment,” - provided a great forum for the exchange of
emphasizing the critical role of dams in sustain- dards and guidelines to ensure that dams are built recently, new subjects include cost studies at the from the stage of planning to monitoring espe- knowledge and experience on the subject amongst Pol-
able development and environmental protection, and operated safely, efficiently and economically, planning and construction stages, harnessing in- cially in case of Dams located in hinterland,” he icy makers, Dam owners, dam professionals, institu-
he added. and are environmentally sustainable and socially ternational rivers, information for the public at added. tions, scientists, and industry from all over the world.
The international symposium featured a di- equitable. ICOLD was founded in 1928 and has large, and financing.” In India, The Committee for International During the course of the international symposium, the
verse range of technical sessions, plenary talks, National Committees from 88 countries with ap- “The media outlook needs to bring out the Commission on Large Dams, (INCOLD) is the In- stakeholders are convinced about India’s growth story and
and panel discussions, providing an excellent proximately 10,000 individual members. ICOLD positive aspects and role of dams in sustainable dian Committee interacting with ICOLD Central numerous opportunity it will present for the global players.
platform for participants to share experiences, in- members are essentially practicing engineers, ge- development and environmental protection. It will Office in Paris and helps in dissemination, in
sights, and best practices while fostering mutual ologists and scientists from governmental and pri- be heartening to witness evolution of more hybrid India, of information about new developments in
learning as to pave way for further advances in vate organizations, consulting firms, universities, mechanism of funding DAMs, which will be in- dam engineering, besides projecting India's ex-
Frederic Correge, Vice President, ICOLD
the science of dam engineering and water man- laboratories, and construction companies. strumental in ensuring high growth and sustain- pertise at international level through participation
agement. Alongside the technical program, there On the conclusion of the event- Frederic Cor- able development in India. Likewise in other in various events of ICOLD, including the said
ICOLD was a great platform for Indian engineers to
were ample opportunities for networking and so- rege, Vice President, ICOLD, “The Annual Meet- industries, technology and Artificial Intelligence symposium in New Delhi.
showcase their expertise and knowledge in different
cializing, including cultural events, technical tours,
areas pertaining to dam engineering and water
and social activities.
management. It was heartening to note that the
Here, R K Vishnoi, President, INCOLD said,
Indian engineers are at par with the best of the
“India holds a prominent position as a strong and
world. Also, INCOLD office bearers took every
longstanding member of ICOLD, boasting an im-
possible initiative and deserve due praise for
pressive track record of over 6300 dams, with ap-
successfully conducting ICOLD-24 in New Delhi.
proximately 411 dams currently under
construction. The nation stands as a global leader
in the development of vital water infrastructure,
spearheading significant projects such as the
Bhakra, Koldam, Tehri Dam, Bichom Dam and
Michel de Vivo, Secretary General, ICOLD
Subansiri Lower projects, as well as the World
Bank-supported Dam Rehabilitation Improvement ICOLD-24 in India provided a forum for exchange of
Projects.” knowledge and experience in dam engineering to
“These modern water infrastructure endeav- further stakeholder’s deliberations on setting
ors, supported by INCOLD, have made substan- higher standards and guidelines to ensure that
dams are built and operated safely, efficiently and
economically, and are environmentally sustainable
and socially equitable.

INCOLD led mega success of ICOLD 2024,

Showcases Indian engineers’ prowess to the world
R K Vishnoi. President, INCOLD

India has also undertaken the world’s largest dam

rehabilitation and improvement project (DRIP) for
ICOLD leadership here in New Delhi for the 92nd Annual Meeting of International Commission of Large Dams (ICOLD) its existing Dams. The 92nd ICOLD Annual
Meeting & Symposium serves as a mega forum for
held recently in New Delhi from 29th September to 3rd October, 2024 were all praises for the The Indian National deliberations and exploring sustainable best
Committee on Large Dams (INCOLD) for making ICOLD-24 a grand success practices for policy makers, researchers, engineers,
managers, stakeholders, and manufacturers and
contractors engaged in the field of Energy & Water
he 92nd Annual Meeting of International vironmental protection, while also highlighting engineering. ICOLD is a leader in setting stan- of Irrigation & Power (CBIP) shared that ICOLD

T
Resources Management.
Commission of Large Dams (ICOLD) the hard work put by INCOLD in making the dards and guidelines to ensure that dams are 2024 was a great success with over 70 member
held recently in New Delhi from 29th event a mega success. built and operated safely, efficiently, and eco- countries out of 106 countries present at
September to 3rd October, 2024 with The International Commission on Large nomically, and are environmentally sustainable the event held in New Delhi. The mission at IN- A K. Dinkar, Secretary General INCOLD and Secretary,
the theme "Dams for People, Water, Environ- Dams (ICOLD) is a non-governmental interna- and socially equitable. COLD is to advance the knowledge of dam en- Central Board of Irrigation and Power
ment & Development," emphasised the critical tional organization which provides a forum for While, the Indian National Committee on gineering, construction, planning, operation,
role of dams in sustainable development and en- exchange of knowledge and experience in dam Large Dams (INCOLD) is the National Commit- performance, rehabilitation, decommissioning, ICOLD 2024 was a great success with over 75
tee representing India which interacts with maintenance, security, and safety; fostering dam member countries out of 106 countries participate at
ICOLD Central Office in Paris and helps in dis- technology for socially, environmentally and fi- the event held in New Delhi that witnessed
semination, in India, of information about new nancially sustainable water resources systems participation of over 6000 delegates during event. We
developments in dam engineering, besides pro- through ongoing interactions with ICOLD. “The are about to kickstart our plans to commemorate the
jecting India's expertise at international level response ICLOD-2024 gathered here in New centenary year of CBIP in 2027 in a grand manner,
through participation in various events of Delhi was mammoth with participation of over while we will continue our quest to bring more big-ticket
ICOLD. 6000 delegates. We will continue with our quest exhibitions for benefit of our stakeholders in India.
Here, Frederic Correge, Vice President, to build larger public awareness of the role of
ICOLD shared that the Indian experts are many dams in the management of the nation's water
a time invited to officiate as members of ICOLD resources and enhancing best practices to meet K K Singh, Director - Water Resources, Central
Committees on specialized topics. “ICOLD-24 current and future challenges on dams,” he
Board of irrigation and Power
held here in New Delhi featured a diverse range added.
of technical sessions, plenary talks, and panel The most amazing fact here is that India is Organising teams here had worked round the clock
discussions, providing an excellent platform for one among the top countries globally in terms of to extend the best possible welcome and amenities
participants to share experiences, insights, and number of dams in the World and has rightly so to all the delegates from across the world to ensure
best practices while fostering mutual learning. also undertaken the world’s largest dam reha- the success of such a mega event being held in
More importantly, ICOLD-24 was a great plat- bilitation and improvement project (DRIP) for its India. We are hopeful, the deliberations conducted
form for Indian engineers to showcase their ex- existing Dams- there is still a lot to be done in through the course of the five-day event will
pertise and knowledge in different areas India, said Frederic Correge, Vice President, culminate into path breaking partnerships and
pertaining to dam engineering and water man- ICOLD. solution for India and the world at large.
agement. Also, INCOLD office bearers took “I am sure, the 92nd ICOLD Annual Meeting
every possible initiative and deserve due praise & Symposium held here in India provided a great
for successfully conducting ICOLD-24 in New forum where policy makers, researchers, engi-
Delhi,” he added. neers, managers, stakeholders, manufacturers, Prof. Arun Kumar, Department of Hydro and Renewable
Further, Michel de Vivo, Secretary General, and contractors in the field of Energy & Water Energy, Indian Institute of Technology Roorkee
ICOLD said, “The Indian engineers today are at Resourcest Management. Stakeholder in due
par with the best. I believe that ICOLD-24 pro- course of time will forge partnerships and con- The media outlook needs to bring out the positive
vided a remarkable forum for the exchange of tinue to exchange views, and continue under the aspects and role of dams in sustainable
knowledge and experience on the subject ICOLD banner to acquaint themselves about the development and environmental protection. Also, It
amongst Policy makers, Dam owners, dam pro- latest innovation on various aspects of Inte- will be heartening to witness evolution of more
fessionals, institutions, scientists, and industry grated Reservoir Management, Climate Change hybrid mechanism of funding DAMs, which will be
from all over the world, who will know like to adaptation, challenges in Dam Construction and instrumental in ensuring high growth and sustainable
partner with their counterparts in India.” their solution, etc. and other issues related to development in India.
Here, A K Dinkar, Secretary, Central Board dam safety,” he added.
6 ECONOMY & PUBLIC AFFAIRS
>
NEW DELHI | THURSDAY, 3 OCTOBER 2024 1

~ overvalued vs key currencies New external MPC members

may keep markets guessing
despite new lows against $ MANOJIT SAHA
Mumbai, 2 October

The three new external members of

HOW THE SECOND MPC VOTED
Voting pattern of Voting pattern of
REER likely to moderate but rupee’s overvaluation to persist, say experts the Reserve Bank of India (RBI)’s internal members external members
Monetary Policy Committee (MPC)
ANJALI KUMARI a faster pace than in India. So, the will be taking charge at a time when n On rate: Voted unanimously n On rate: Voted differently on
Mumbai, 2 October REER VIEW RUPEE VS overvaluation will persist, though many believe the interest rate curve in all 25 meetings 7 occasions
n RBI’s real effective DOLLAR possibly to a lesser degree,” is at an inflection point. n On stance: Voted n On stance: 17 of 25

T
he rupee remains overval- Sengupta said. On Tuesday, the government unanimously in all 25 policies saw external
exchange rate (REER)
ued against the currencies
of India’s trading partners, stands at 5.5% in SPOT In CY24 so far, the rupee has
remained relatively stable versus
notified that Director of Delhi
School of Economics Ram Singh,
meetings members vote differently
even as it hit record lows against August, moderating Inverted scale the greenback, depreciating by veteran economist Saugata
the dollar in August and from 7.7% in July just 0.59 per cent. In contrast, the Bhattacharya, and Nagesh Kumar,
September. n REER is a widely used dollar index, which tracks the US director and chief executive, Internal MPC members unanimous,
According to the Reserve Bank
of India’s (RBI) real effective
metric to assess a currency’s performance against a
basket of others, has declined by
Institute for Studies in Industrial
Development, will be the three new
variation in external members' vote
currency’s value relative
exchange rate (REER) index, the 0.94 per cent this year. external members of the MPC. The Second Monetary Policy Committee (MPC), with external
rupee stood at 5.5 per cent above
to its trading partners Among Asian currencies, the The three members come from members Shashanka Bhide, Ashima Goyal and Jayanth R Varma, was
its fair value in August, down from n A reading above 100 rupee was the third most stable a very diverse field of expertise, and constituted in October 2020.
7.7 per cent in July. This slight eas- signals overvaluation, against the dollar in FY24, behind the Committee will have a mix of It decided outcomes of 25 monetary policies during the tenure.
ing followed fears of a US reces- and the rupee has only the Hong Kong dollar and academic, markets and public pol- When the panel assumed office in October 2020, headline
sion and the unwinding of yen consistently remained Singapore dollar — largely attrib- icy experience. inflation was at 7.61 per cent, and when it is demitting office, the
carry trades, which exerted pres- above the threshold utable to the RBI’s interventions, Singh, a doctorate in eco- recent headline print stood at 3.65 per cent in August.
sure on the Indian currency. which helped limit the rupee’s nomics from Jawaharlal During its tenure, headline inflation peaked at 7.79 per
On September 5, the rupee hit n REER might moderate depreciation to 1.5 per cent that Nehru University, has cent in April 2022.
a new low of 83.99 against the dol- further in FY25 on the year, down from 7.8 per cent in the done extensive work The policy rate — repo rate — was 4 per cent when
lar, as investors pulled out of yen- back of inflows, say Source: previous financial year. on law and eco- the second MPC was constituted.
and yuan-funded carry trades in market participants Bloomberg Remarkably, the rupee dis- nomics. His area of After increasing the repo rate by 250 basis points
favour of the greenback. However, played near-historic stability in expertise also (bps) to 6.5 per cent between May 2022 and February
the RBI’s intervention, selling US CY23, recording its lowest volatil- includes public 2023, the domestic rate-setting panel opted to keep
dollars in the forex market, pre- further in the remainder of CY24 have fluctuated more,” said Gaura ity in almost 30 years. It depreci- economics, taxes the rate unchanged.
vented the rupee from breaching and FY25, as India’s rate cuts are Sengupta, an economist at IDFC ated by just 0.5 per cent against the and public finance, While all the internal members of the MPC voted
the critical 84 per dollar mark. likely to be delayed compared to First Bank. She noted that the dollar — its most stable perform- among others. unanimously, both in case of rate action and stance, in
REER is a widely used measure developed countries, where infla- rupee’s overvaluation has been a ance since 1994, when it actually Kumar, a doctorate all the 25 policies, voting pattern was much more varied
of a currency’s value compared to tion is easing more quickly. But persistent issue. appreciated by 0.4 per cent. from Delhi School of among external MPC members. COMPILED BY ANJALI KUMARI
its key trading partners. A value inflows may help cushion the “During the (Covid) pandemic, Looking ahead, some analysts Economics, has research
above 100 indicates overvalu- domestic currency. the overvaluation had gone predict the rupee could slip to interests, including Foreign Direct
ation, and for the last decade, the “The rupee is overvalued because the interest rate and infla- ~84 per dollar by March 2025, Investments and International members — Singh and Kumar — it being their first meeting.”
rupee has hovered above this because while it hasn’t moved tion in developed markets had though inflows and the RBI’s Trade, Regional Economic on growth, inflation and monetary The market will also keenly
benchmark. Market participants much, other currencies, particu- surged. Now, inflation in devel- rate cut timeline will be key fac- Integration and Industrial policy are not widely known and watch if new external members’
expect the REER to moderate larly from developed markets, oped markets is coming down at tors to watch. Restructuring in Asia, and would keep the market guessing. opinions differ from the internal
Industrial policy, among others. “Prof Ram Singh specialises in members. Varma, Goyal and
Bhattacharya is an economist public economics and finance, and Shashanka Bhide, the other external
with over 30 years of experience in while he has published extensively member of the previous MPC,

IDBI Capital seeks bids for SBI-led economic and financial markets
analysis, policy advocacy, infras-
tructure and project finance, con-
on matters of public finance and
contract theory, including recent
research critiquing India’s agricul-
shared their views in the media after
the monetary policy minutes were
published. It is to be seen if the new

consortium’s ~1,772 cr bad loans

sumer behaviour and analytics. He tural export policy, there is not members continue that tradition.
was also the chief economist of much literature around his After increasing interest rates by
Axis Bank. thoughts on monetary policy and 250 basis points (bps) between May
He is the first one to be the RBI,” a Nomura report said. 2022 and February 2023, the domes-
SUBRATA PANDA counter bids will be invited in the and Bank of Baroda at ~182 crore, der for the asset if no counter bids appointed in the rate-setting panel “Dr Nagesh Kumar’s primary tic rate-setting panel has main-
Mumbai, 2 October Swiss auction. according to the auction doc- are received during the auction. who has a financial markets back- focus is on industrial policy, com- tained status quo. The policy stance
The consortium of lenders ument. However, if a counter bid is sub- ground. In the previous two MPCs petitiveness, FDI and regional — withdrawal of accommodation
IDBI Capital Markets and includes Punjab The EoIs have to be mitted, NARCL will have the — 2016-2020 and 2020-2024 — issues in South Asia, with recent — was also kept unchanged.
Securities has invited expressions National Bank, India submitted by October opportunity to match it. If NARCL there was no one from the financial commentary arguing for bolstering MPC will meet from October 7-9
of interest (EoIs) from entities Infrastructure NARCL has 7, after which inter- successfully matches the counter markets. Bhattacharya has tracked India’s manufacturing sector. amid a flurry of actions by leading
interested in acquiring ~1,772.7 Finance Company submitted an ested entities will have bid, it will be declared the success- the monetary policy developments However, like Prof Singh, he has not central banks. The European
crore of non-performing loans of (IIFCL), Bank of anchor bid of until October 28 to con- ful bidder. Otherwise, the counter closely over the years, and com- written much on monetary policy,” Central Bank (ECB) implemented
State Bank of India (SBI)-led con- Baroda, Indian ~300 crore duct due diligence on bid will be declared as the success- mented on such issues. In a news- the report added. its second rate cut of the year, fol-
sortium of lenders in Bareilly Overseas Bank, and for exposure, the asset. The Swiss ful bid. paper article after the August policy Two external members of the lowed by a 50 bps cut by the US
Highways Project through a Swiss Union Bank of India. prompting challenge auction is Bareilly Highways Project is a review meeting, he suggested that previous MPC — Ashima Goyal Federal Reserve, while the Bank of
challenge auction on October 30. Within this consor- a Swiss auction scheduled for October special purpose vehicle promoted a rate cut may be a risk worth tak- and Jayanth Varma — had voted England and the Bank of Japan
According to sources, state- tium, SBI has the scheduled 30, wherein the entities by Era Infra Engineering and ing, given the likely future growth- for a rate cut along with a change diverged, maintaining status quo.
owned National Asset highest exposure at for October 30 will be invited to sub- OJSC- Sibmost to undertake inflation tradeoff. in stance in the last few review RBI has resisted change in both
Reconstruction Company ~693.21 crore, fol- mit counter bids with a four-laning of the existing Interestingly, both the earlier meetings. rate and stance, citing volatile
(NARCL) has submitted an anchor lowed by Punjab minimum increase of two-lane road on NH-24 from MPCs had a member from the Highlighting this, a Barclays food inflation and slow progress
bid of ~300 crore for the exposure National Bank at ~15 crore over the Bareilly to Sitapur in Uttar Pradesh Indian Institute of Management report said: “We think at least one of last-mile disinflation. RBI gov-
on a 15:85 cash-to-security receipts ~257.71 crore, IIFCL at ~253.45 crore, reserve price. under National Highways (IIM-A), and also a woman member, of the new external MPC members ernor Shaktikanta Das also
basis. This bid has been set as the Indian Overseas Bank and Union NARCL, as the anchor bidder, Development Programme which is not the case this time. may vote against the rate or stance emphasised on hitting the 4 per
reserve price, based on which Bank of India at ~193 crore each, will be declared the successful bid- Phase III of NHAI. The views of the other two at the meeting on October 9, despite cent inflation target.

ACCENT REGION NBFC loan sanctions SBI plans to open

UTTAR PRADESH CHHATTISGARH ride on home, auto to 600 branches in
Energy projects may SECL to remove rise 12% in June qtr FY25: Chairman
2,200 mt of scrap
get ~1.5 trn funding R KRISHNA DAS
Raipur, 2 October
FIDC data shows finance firms sanctioned
loans worth ~5.08 trillion in the period
VIRENDRA SINGH RAWAT Even as UP is targeting solar energy gen- South Eastern Coalfields (SECL), ABHIJIT LELE The gold loan sanctions were up
Lucknow, 2 October eration of 22,000 mw by 2027-28, the state is the Chhattisgarh-based subsidi- Mumbai, 2 October 26 per cent to ~79,217 crore in
also ramping up thermal power generation to ary of state-run Coal India (CIL), Q2FY25 from ~62,834 crore in
With Uttar Pradesh’s peak energy demand feed the proliferating demand for power from has decided to remove 2,200 met- The loan sanctions by non-banking Q1FY24. The sanctions on personal
expected to top 53,000 megawatt (mw) by different quarters, including industry, com- ric tonnes (mt) of scrap. finance companies (NBFCs) in the loans grew 12 per cent Y-o-Y to
2028, the state is expected to garner mercial, residential and agriculture. A special campaign will be run country rose by 12 per cent year-on- ~71,306 crore from ~63,494 crore in
public and private sector invest- To attract investment, UP is by SECL from October 2 to year (Y-o-Y) in the first quarter of Q1FY24, FIDC said.
ment of ~1.5 trillion in the next 4 offering a slew of incentives and October 31 with the aim of pro- the current financial year (Q1FY25) The loan sanctions in the hous-
to 5 years. sops to the private sector com- moting cleanliness in govern- with robust growth in segments like ing segment were ~50,826 crore in
The estimated investment in panies to set up power projects as ment offices and reducing pend- home, auto, and personal credit. Q1FY25, up from ~47,084 crore in SBI Chairman C S Setty said the bank is
the UP energy projects would well as manufacturing plants to ing cases and complaints, coal Sequentially, however, loan Q1FY24. Auto loan sanctions were considering innovative products,
span the entire value chain of cater the domestic and interna- ministry officials said. sanctions shrunk by 11 per cent over ~25,022 crore, up from ~22,823 crore including a combo of recurring deposit
generation, transmission and tional markets. The state’s total Under the campaign, SECL the quarter ended March 2024 in the year-ago period. The con- and SIP, to attract depositors
distribution encompassing both power consumption is estimated has decided to remove the 2,200 (Q4FY24), given the seasonality of sumer loan sanctions too grew to
conventional and renewable to grow at an annual rate of 16 per mt of scrap, it said. business, according to the Finance ~34,466 crore in Q1FY25 from
energy domains. cent and touch 277,000 million This will free up a huge Industry Development Council ~29,885 crore in Q1FY24. PRESS TRUST OF INDIA
Indian Electrical and units by 2028. amount of space, which can be (FIDC). K V Srinivasan, co-chairman, New Delhi, 2 October
Electronics Manufacturers’ UP’s western region is reused. Along with this, it will FIDC data showed that in abso- FIDC and chief executive officer,
Association (IEEMA) President expected to witness higher indus- also generate additional revenue lute terms, the finance companies Profectus Capital, told Business State Bank of India (SBI) is planning to open 600
Sunil Singhvi said the energy trial power consumption com- of about ~10 crore. sanctioned loans worth ~5.08 tril- Standard, generally the April-June branches across the country in the current financial
landscape would play a vital role in propelling pared to other parts of the state. The western The company has also set a lion in the April-June 2024 period, period is a soft quarter. However, year in a bid to tap business opportunities in emerg-
UP’s $1 trillion economy goal. region is predicted to consume 62 per cent of target of quick disposal of files, e- up from ~4.54 trillion a year ago there has been an uptick in housing ing areas including large residential townships.
“While the public sector investment in the energy, because of a greater concentration of files and complaints pending for (Q1FY24). FIDC is the industry and auto loans, which is an encour- “We have strong branch expansion plans...this
UP energy sector is expected to be ~90,000 industries and commercial establishments. a long time. lobby group of finance companies. aging sign. The satisfactory mon- would be mainly focused on emerging areas. A lot
crore, the private sector contribution would Earlier, UP Chief Minister Yogi Adityanath SECL will undertake various Construction equipment loans soon and soft rate regime will give of residential colonies are not covered by us. Around
augment the state’s total investment kitty to directed energy department officials to expe- activities during the Special showed a negative growth trend. By impetus to capital expenditure and 600 branches is something we are planning in the
nearly ~1.5 trillion in 4-5 years,” he added. dite various power projects in the state. Campaign 4.0 that include iden- and large, most of the significant credit offtake in the second half. current year,” SBI Chairman C S Setty told PTI.
In 2024, UP’s peak power demand Meanwhile, IEEMA has announced to host tifying pending references and categories showed positive growth The Reserve Bank of India’s (RBI's) The country’s biggest lender opened 137
breached the 30,000 mw mark, owing to the world’s largest electrical show ‘Elecrama public complaints, and resolving Y-o-Y which is encouraging, FIDC stance on rates will also have a bear- branches last fiscal. Of the total, 59 new rural
incremental demand, growing industrialisa- 2025’ from February 22 to 26 next year in them by giving priority. This is said in a statement. ing on trends. branches were inaugurated.
tion, urbanisation and expanding charging Greater Noida to catalyse the domestic energy part of its goal to streamline gov- SBI has a network of 22,542 branches across the
infra for e-vehicles across the state. value chain. ernance in the company.
LOAN LANDSCAPE country as of March 2024.
Apart from branch presence, SBI has 65,000
NBFC loan sanctions in select segments nQ1FY24 nQ1FY25 (~ crore)
RAJASTHAN ATMs and 85,000 business correspondents.
50,826

“We serve about 50 crore customers and we take

47,084

pride in saying that we are the banker to every

34,466

Jaipur becomes hotspot for MICE tourism

29,885

Indian, and, more importantly, to every Indian

25,022
22,823

family,” he said.
63,494
62,834

71,306

He also said it would be his endeavour to trans-

79,217

ANIL SHARMA a further boost by becoming “Thousands of people from the participants go to see the form SBI into the best bank, the most valued bank
Jaipur, 2 October the host of the IIFA25, accord- all over the world come to par- city's tourist places, not only from a shareholder point of view but from
ing to hospitality industry ticipate in these events. Apart heritage monuments, and the the point of view of every stakeholder who deals
Meeting Incentive Conference experts. In the last decade, from this, three to four big doc- old city,” said Karan Singh, a with SBI.
and Exhibition (MICE) tourism many big national and interna- tors’ meet, buyer-seller meet of travel agent. In a bid to attract depositors, State Bank of India
is seeing a surge in Jaipur, tional events have been orga- domestic and foreign com- Industries connected with Auto Consumer Gold Housing Personal is contemplating to come out with innovative pro-
thanks to events, conferences, nised in the state capital. panies, and dealers’ meet keep tourism also get a big boost as ducts including a combo product of recurring deposit
and exhibitions like the Jaipur Some small or big event happening every year. Being a persons attending these events and SIP.
Literature Festival and the keeps happening here tourist city, Jaipur's tourism also use taxis and buy jewellery, 10 15 26 8 12 With the economy progressing, he said, cus-
Jaipur Jewellery Show. throughout the year. JLF and industry also sees a big benefit textiles, and handicrafts from tomers are becoming financially more aware and
Rajasthan tourism, espe- jewellery shows are prominent from these events. This is traditional markets of the city, Y-o-Y growth (in %) demanding, and have started looking for innovative
cially in Pink City, will now get among these. because after coming to Jaipur, Singh added. Source: FIDC-CRIF investment instruments.
.
NEW DELHI | THURSDAY, 3 OCTOBER 2024 ECONOMY & PUBLIC AFFAIRS 7
<

MEA calls for restraint amid

evolving West Asia tensions
New Delhi advises citizens to avoid non-essential travel to Iran
SUBHAYAN CHAKRABORTY
New Delhi, 2 October
Jaishankar meets US counterpart
I
n the wake of the barrage of missile
attacks on Israel, India on Wednesday
called for restraint from all sides, urg-
ing calm.
“We are deeply concerned about the
escalation of the security situation in West
Asia and reiterate our call for restraint by
all parties and the protection of civilians.
It is important that the conflict doesn’t
take on a wider regional dimension, and
we urge that all issues be addressed
through dialogue and diplomacy,” the
Ministry of External Affairs (MEA) said
on Wednesday.
Late on Tuesday night, at least 200 bal-
listic missiles launched from Iran fell
across Israel, forcing a large portion of the
country’s population to take shelter in External Affairs Minister S Jaishankar (left) with US Secretary of State Antony
anti-missile bunkers. The Ali Khamenei- Blinken during a meeting in Washington DC on Wednesday PHOTO: PTI
led Islamic Republic stated that the attack
was in response to Israel’s assassination of External Affairs Minister S Jaishankar bilateral meeting with US President
Hamas leader Ismail Haniyeh in Tehran met his US counterpart Antony Blinken Joe Biden.
in July through an airstrike, as well as the and held discussions covering The US president hosted Modi at his
Jewish state’s attacks on Hezbollah lead- deepening bilateral cooperation, Delaware residence for a bilateral
ership last week, which resulted in the the situation in West Asia, recent meeting on September 21. They were
death of longtime leader developments in the Indian later joined by leaders from Australia
Hassan Nasrallah. sub-continent, the Indo-Pacific and Japan for the Quad Leaders’
The rocket attacks were the second and Ukraine. Summit in Wilmington, Delaware.
such occurrence this year. In April, Iran Jaishankar — on his first visit to the “Together, the US and India are
launched retaliatory attacks against Israel US capital since the third Modi working to address regional and global
and the Israeli-occupied Golan Heights government took office — met Blinken challenges. Indian External Affairs
with loitering munitions (tactical missile on Tuesday at the Foggy Bottom Minister @DrSJaishankar and I met to
systems or kamikaze drones), cruise, and headquarters of the US State discuss our continued cooperation on
ballistic missiles after the Israeli bombing Department. the climate crisis and ways we can
of the Iranian embassy in Damascus “Delighted to hold talks with promote regional security and
on April 1. @SecBlinken today in Washington DC. prosperity,” Blinken said in a post on X.
New Delhi also announced a travel advi- We followed up on the Delaware According to US State Department
sory for Indian nationals regarding Iran. bilateral and Quad meetings. Our spokesperson Matthew Miller,
“We are closely monitoring the recent esca- discussions also covered deepening Jaishankar and Blinken “discussed the
lation in the security situation in the region. bilateral cooperation, situation in West US and India's enduring commitment to
Indian nationals are advised to avoid all Asia, recent developments in the Indian deepening bilateral ties, coordinating
non-essential travel to Iran. Those currently subcontinent, the Indo-Pacific and closely on regional and global
residing in Iran are requested to remain vig- Ukraine,” Jaishankar said in a post on X. challenges, and advancing cooperation
ilant and stay in contact with the Indian The minister was referring to Prime on critical and emerging technologies”.
embassy in Tehran,” the MEA said. Minister Narendra Modi's recent PTI

Modi inaugurates projects worth

~84,000 crore in Jharkhand
PRESS TRUST OF INDIA
Jharkhand, 2 October
PM to address Kautilya
Prime Minister Narendra Modi on
Wednesday unveiled development Economic Conclave on Oct 4
projects worth over ~83,700 crore Prime Minister Narendra Modi is scheduled to
in Jharkhand, reaffirming his gov- address the Kautilya Economic Conclave being
ernment’s commitment to the held from October 4 to 6, according to people in
state’s progress. the know. This will be the first time the PM will be
He emphasised the importance attending the event, which has been organised by
of tribal development, stating that the Institute of Economic Growth (IEG) annually for
Mahatma Gandhi’s vision for this the past three years.
demographic is “our asset.” PM The Conclave will be inaugurated by Finance
Modi launched the Dharti Aaba crore will be spent on Dharti Aaba Minister Nirmala Sitharaman on October 4. Later in
Janjatiya Gram Utkarsh Abhiyan, Janjatiya Gram Utkarsh Abhiyan to the evening, the Prime Minister is expected to
which will be implemented at a develop 65,000 tribal villages,” he address a gathering of eminent economists,
cost of ~79,150 crore, aimed at said. Rays of development are now representatives of multilateral development
ensuring comprehensive and holis- reaching remote tribal villages, banks, among others.
tic development for tribal commu- he said. Modi expressed his grat- The theme of last year’s summit, held in the
nities across the country. itude for being part of Jharkhand’s backdrop of geopolitical tensions,was “Navigating
“Mahatma Gandhi’s vision for development journey. a World on Fire.” In its first edition, the subject
tribal development is our asset, he According to a statement from was “Redefining the Destiny.” Conceived and
(Mahatma Gandhi) believed that the Prime Minister’s Office, the sponsored by the Ministry of Finance, the Conclave
India can develop only when tribal Dharti Aaba Janjatiya Gram started in July 2022, at a time when the world was
communities will develop. BJP gov- Utkarsh Abhiyan will benefit over emerging from two years of lockdown following
ernment accords top priority to 5 crore tribals in 549 districts across the Covid pandemic. RUCHIKA CHITRAVANSHI
tribal development and ~80,000 30 states and Union Territories.

Parties reach out to SCs in Haryana

as group holds key to Assembly
In 17 SC Assembly segments, the Congress led in 11 in the 2024 Lok Sabha polls
ARCHIS MOHAN “400 paar” BJP government that will
New Delhi, 2 October
THE IMPORTANCE OF seek to amend the Constitution to the
detriment of the marginalised sections
In the 2019 Lok Sabha elections, the
Bharatiya Janata Party (BJP) swept all
SC VOTE IN HARYANA “hurt the party” among the Dalits in the
2024 LS polls.
n SC population increased from 19.3%
of Haryana’s 10 seats. Five years later, The party has since tried to build
(2001) to 20.2% in 2011
the party could win only half of the 10 bridges with Jatavas, Balmikis, Dhanaks
seats, losing five to the Congress, n Rose from 21.4% to 22.5% in rural and other smaller Dalit communities
including the two Scheduled Caste (SC) areas, and from 14.4% to 15.8% in in Haryana.
reserved seats of Ambala and Sirsa. urban areas The Congress approach has
In the 17 Assembly segments n Fatehabad (30.2%), Sirsa (29.9%) focussed on activist groups
reserved for SCs, the Congress led in 11 and Ambala (26.3%) are districts fanning out on seats with
in the 2024 Lok Sabha polls, and its significant SC population
with high SC population
INDIA bloc ally Aam Aadmi Party (AAP) to campaign for the party,
in two more. The BJP led in only four n Nuh (6.9%), Faridabad and it has showcased its Dalit
segments. Five years back, in the 2019 (12.4%) and Gurgaon leadership comprising Sirsa
Lok Sabha polls, the BJP had led in 15 (13.1%) are districts with MP Kumari Selja and state
of these segments and the Congress in low SC population unit chief Udai Bhan. Two
two. n Of Haryana’s 90 Assembly seats, other “Jat-Dalit alliances”,
However, the BJP’s decline in namely the Bahujan Samaj
17 reserved for SCs
Haryana had started five months after Party (BSP)-Indian
its historic performance in the 2019 Lok n Of the 17 in 2014 Assembly polls, BJP National Lok Dal (INLD)
Sabha polls. In the Haryana Assembly won 9, INC 4, INLD 3 and Others 1 one and the Azad Samaj Party (Kanshi
polls in October of that year, the BJP n In 2019, BJP won 5, INC 7, JJP 4 and Ram)-Jannayak Janata Party one, are
could win five of the 17 SC reserved others 1 also in the fray.
seats, down from nine that it had “Jats might claim to be the largest
bagged in the 2014 Assembly polls. The n According to post-poll studies, in 2024 caste group, but there is no census data
Congress increased its tally of these LS polls, BJP received 47.7% of to support that. In the case of SCs, there
seats from four to seven. General votes and 40% of SC votes in is data that we are almost 21 per cent of
In the weeks leading up to this Haryana compared to INC’s 41.60% Haryana’s population. Unfortunately,
October 5 polling date, Haryana Chief General votes and 51.7% of SC votes neither the BJP nor the Congress has
Minister Nayab Singh Saini has reached Source: Directorate of Census Operations, Haryana; given us our due share in power struc-
out to the SCs and the poor with the ECI; Ashoka University tures. I hope things will change after
accelerated implementation of various October 8,” said Ashok Bharti, chief of
schemes, especially the B R Ambedkar According to a senior BJP leader, the the National Confederation of Dalit
housing scheme. INDIA bloc Opposition’s narrative of a Organisations (NACDOR).
8 WORLD
>
NEW DELHI | THURSDAY, 3 OCTOBER 2024

Israel-Hezbollah fight moves to Lebanon streets

Regional conflict escalates as Israel sends in IDF confirms deadliest casualties in Israel’s foreign minister says
infantry and armoured units to join ground ops Lebanon offensive; Italy calls G7 meet UN chief can’t enter the country
AGENCIES
2 October
Airlines squeeze into Saudi Bitcoin totters
H
ezbollah said its fighters were
engaging Israeli forces inside airspace as conflict flares in poor start to
Lebanon on Wednesday,
reporting ground clashes for the first Airlines connecting Europe with West Asia and South Asia token’s historic
time since Israel began pushing into
its northern neighbour to hammer the
are being forced to fly a more circuitous path
using Egyptian and Saudi Arabian airspace best month
Iran-backed armed group. as the escalating conflict in West Asia blocks Bitcoin speculators banking on
The Israeli military said regular off routes over Iran and Iraq for many carriers. a seasonal October melt-up
infantry and armoured units were British Airways, Emirates, Deutsche faced an early reality check as
joining its ground operations in Lufthansa, and other airlines began diverting deepening tension in West Asia
Lebanon, a day after Israel was services away from Iraqi airspace around 5:30 spurred a bout of caution across
attacked by Iran in a strike that raised pm in the UK on October 1, when Israel’s IDF said global markets. It fell 4.7 per cent
fears that the oil-producing West Asia that rockets from Iran had been fired at the country. Many on Tuesday, the most in nearly a
could be engulfed in a wider conflict. carriers shifted to flying across the breadth of Saudi Arabia and month. The token pared some of
Israeli Prime Minister Benjamin over the Sinai peninsula, based on a playback of flight paths on the drop on Wednesday,
Netanyahu vowed to retaliate, saying tracking website FlightRadar24. changing hands at around
Iran “made a big mistake tonight and On Wednesday morning, most airlines were giving Iraqi $61,430 as of 6:30 am in London.
it will pay for it.” President of ally US, airspace a wide berth, although some Emirates flights to the US Bitcoin has shed about 4 per
Joe Biden, said his administration was were still overflying Iran. Flying more circuitous routes cent in the first two days of
“fully supportive” of Israel and that increases flight times and fuel expenses for airlines, and October, a contrast with its
he’s discussing with aides what the complicates schedules that depend on aircraft being in the right average 20 per cent climb over
appropriate response should be. place at the right time. Airlines in Europe, the US, and Canada the month as a whole in the
(Top) An Israeli Italy called for a Group of Seven have already been contending with costly detours around past decade, according to
Apache (G7) leaders meeting on Wednesday banned Russian airspace on flights to Asia. BLOOMBERG Bloomberg data. BLOOMBERG
helicopter amid worsening tensions in West Asia.
releases flares Giorgia Meloni’s government, which
near the Israel- holds this year’s G7 presidency, has
Lebanon consistently called for military de- least 32 people have been killed in comment from Israel. Israel renewed its bombardment
border on escalation and a cease-fire in both Israeli strikes in southern Gaza. It said Israel’s addition of infantry and early on Wednesday of Beirut’s south-
Wednesday; Lebanon and Gaza. the dead include several women and armoured troops from the 36th ern suburbs, a stronghold of the Iran-
(left) an Israeli Iran said on Wednesday its missile children, and that dozens of people Division, including the Golani Brigade, backed group, with more than a dozen
soldier prays at attack — the biggest assault on Israel were wounded. the 188th Armoured Brigade, and 6th airstrikes against what it said were tar-
a mobile — was over barring further provoca- Hezbollah said it had clashed with Infantry Brigade suggests that the gets belonging to Hezbollah.
artillery tion, but Israel and the United States Israeli troops in the border town of operation may move beyond limited Earlier, Israel’s foreign minister
position in promised to hit back hard. Maroun el-Ras and pushed back forces commando raids. Israel Katz said that he was barring the
northern Israel An Israeli team commander and near other border towns. The group The military said its incursion was United Nations secretary-general from
on Wednesday eight of its soldiers were killed in com- said it had also fired rockets at military largely aimed at destroying tunnels entering Israel, accusing him of being
bat in Lebanon, Israeli military offi- posts inside Israel. and other infrastructure on the border biased against the country.
PHOTOS: AP/PTI cials said. The losses were the deadli- The group’s media chief and there were no plans for a wider The general staff of Iran’s armed
est suffered by the Israeli military on Mohammad Afif said those battles operation targeting the capital Beirut forces said any Israeli response would
the Lebanon front in the past year of were only “the first round” and that or major cities in southern Lebanon. be met with “vast destruction”. US
clashes between Israel and its Iran- the group had enough fighters, Nevertheless, it issued new evacu- news website Axios on Wednesday
backed Lebanese adversary. weapons and ammunition to push ation orders for around two dozen cited Israeli officials as saying Israel
Palestinian medical officials said at back Israel. There was no immediate towns along the southern border. will launch a “significant retaliation”.

IN BRIEF WALZ, VANCE CLASH IN FIRST VP DEBATE, POLITELY Japan starts to lose
Tesla lets down investors in CANDIDATES FOCUS MORE ON decades-long fancy
3rd-quarter delivery miss TOP OF TICKET THAN EACH OTHER
Tesla handed over fewer vehicles than analysts expected in the
third quarter as stiff competition in China and Europe hit demand
ON WEST ASIA
WALZ SAID
ON IMMIGRATION
WALZ CRITICISED TRUMP FOR
for overseas assets
for its ageing models, putting the electric-vehicle maker at risk of
its first-ever decline in annual deliveries. Shares of the world's
“ISRAEL’S ABILITY
TO DEFEND ITSELF
DERAILING THE “TOUGHEST
BILL ON IMMIGRATION”
Local investors’ purchase of nation’s
most valuable automaker fell more than 6 per cent in morning
trading on Wednesday and were on track to erase nearly all their
IS ABSOLUTELY VANCE SAID HE WAS govt bonds highest in 14 years
FUNDAMENTAL” WORRIED ABOUT PEOPLE IN
gains for the year. Tesla said deliveries rose 6.4 per cent in the July- BLOOMBERG
September period to 462,890 vehicles, marking its first quarter of VANCE SAID IT WAS SPRINGFIELD, OHIO, “WHO 2 October
LARGE FOOTPRINT
growth this year.Growing consumer interest in hybrids over EVs, a UP TO ISRAEL TO HAVE HAD THEIR LIVES Japanese holdings relative to
lack of European subsidies, and strong competition in China were DECIDE WHAT IT DESTROYED BY KAMALA Japan’s investors are starting market capitalisation (%)
a drag on Tesla’s deliveries. REUTERS NEEDS TO DO HARRIS’S OPEN BORDER” to lose their decades-long
infatuation with overseas Total Bonds Stocks
ON ABORTION assets. In the first eight Australia 4.6 9.6 1.3
Nike wipes slate clean for new VANCE SAID HE “NEVER SUPPORTED A NATIONAL BAN”.
WALZ REJECTED TRUMP’S CLAIM THAT HE SUPPORTS
months of the year, Japanese
investors snapped up a net
New Zealand 4.3 7.0 0.6
Netherlands 4.1 6.9 2.1
CEO, withdraws guidance ABORTION IN THE NINTH MONTH OF PREGNANCY ¥28 trillion ($192 billion) of the
nation’s government bonds, France 2.9 4.6 1.1
Nike, facing one of its roughest patches in decades, moved to reset Democrat Tim Walz (right) and Republican JD Vance clashed on the largest amount for the
Singapore 2.7 5.6 1.5
PHOTO: REUTERS

Wall Street’s expectations ahead of new Chief Executive Officer Tuesday at a vice presidential debate that was surprisingly civil time frame in at least 14 years.
Elliott Hill’s arrival. The sportswear company withdrew its full-year in the final stretch of a campaign marred by inflammatory They also cut purchases of for- US 2.5 4.2 1.7
sales guidance on Tuesday, citing the leadership transition later rhetoric and two assassination attempts eign bonds by almost half to UK 2.3 3.4 1.2
this month. Nike is also postponing its investor day, which had SOURCE: AGENCIES just ¥7.7 trillion and their
been scheduled for November, giving Hill more time to develop his buying of overseas equities Spain 2.2 2.9 0.7
turnaround strategy. Withdrawing the forecast “provides Elliott was less than ¥1 trillion. Italy 2.0 2.5 0.8
with the flexibility to evaluate the current strategies and business “It’s going to be a mega Mexico 1.7 3.2 0.4
Market frenzy
trends,” Chief Financial Officer Matt Friend said. Sales in the first
quarter fell 10 per cent to $11.59 billion. BLOOMBERG Hong Kong stock HK brokers swamped by ‘once in a century’ mania trend and it is a super cycle
for the next five to 10 years,”
said Arif Husain, head of
Sources: Bloomberg, Bank of Japan,
Japan’s Ministry of Finance
turnover (HKD/bn)
BLOOMBERG firm has experienced a “mas- ing 400 per cent-plus gains in fixed-income at T Rowe Price, Japan and other countries
IMF ‘too polite’ on China 2 October sive jump” in account open-
ings. Many of his customer sup-
some penny stocks on
Wednesday and a doubling in
who has nearly three decades
of investing experience.
has narrowed, the inflows
have been a trickle rather
policies: US Treasury official Stock brokers in Hong Kong are
having the time of their life,
port staffers have cancelled
planned holidays, and are
share prices of several property
developers that have defaulted
“There will be a sustained,
gradual but massive flow of
than the flood some investors
have feared. The overseas
The International Monetary Fund (IMF) is “too polite” when it comes with a 31-year veteran describ- standing by 24 hours a day to on their debt. capital back into Japan investments of the Japanese
to criticising China’s economic policies and should more fully ing the city’s sudden rally as a handle the unprecedented Brokers across Hong Kong from abroad.” have been compared to a
disclose financing assurances given by China and some other “once in a century” event. surge in client inquiries. are experiencing a similar With $4.4 trillion invested giant carry trade, where
countries to support IMF loan programs, a senior US Treasury official Edmund Hui, chief execu- The surge of investor inter- euphoria as the stocks of abroad, the speed and size of investors benefited from
said on Tuesday. Brent Neiman, the Treasury’s deputy tive officer of one of Hong est has also come with telltale Chinese companies soar in the any pullback has the power to ultra-low interest rates
undersecretary for international finance, said the IMF had failed to Kong’s biggest local brokerages, signs of overheating in some wake of landmark stimulus disrupt global markets. Even available at home to fund
apply enough analytical rigour to China’s industrial policies. REUTERS Source: Bloomberg Bright Smart Securities, said his pockets of the market, includ- moves by Beijing last week. as the gap in rates between purchases abroad.

A VC firm does something rare: Gives money back TECH MAJORS IN FOCUS
ERIN GRIFFITH In the years since, the tech more mature companies. The firm said prices, Gur said, it would wind up with
San Francisco, 2 October exuberance faded, and many startups it needed more money to accommodate lower returns. So instead of settling for US accuses Apple of setting
cut staff or shut down. The market for the bigger investment rounds, higher worse performance, the firm decided to illegal workplace rules
Venture capital firms raise money — initial public offerings and acquisitions valuations and the frequency of fund- cut the fund.
lots of it — and invest it in start-ups in — the main ways venture capital firms raising. But over the past year, CRV’s CRV will continue investing out of its A US labour board issued a complaint
hopes of generating big returns. One earn a return on their investments — partners realised that they were passing $1 billion main fund and is roughly two- accusing Apple of violating employees’ rights
thing they rarely do is give the money has also been dismal. on lots of investment thirds invested. The firm has signalled to organise and advocate for better working
back. Yet that is what CRV, one of the Venture capital has In 2020 and 2021, opportunities for older, to its investors that its next fund is likely conditions by maintaining illegal workplace
industry’s oldest firms, is planning. The always experienced many startups and more mature companies to be smaller. rules. The National Labor Relations Board
firm will tell its investors this week that booms and busts, but now, investment firms for its Select fund. The CRV was founded as Charles River claimed Apple required employees
it will return the $275 million that it has the boom and bust seem to raised outsize reason was the math no Ventures in 1970 for investing in nationwide to sign unlawful agreements and
not yet invested from its $500 million be happening at the same funding, expecting longer worked. CRV does companies built using research coming imposed overly broad misconduct and social
Select fund, which is designed to back time. While IPOs have the boom to keep not plan to raise another out of the Massachusetts Institute of media policies. REUTERS
more mature startups. been infrequent and it has going. But the tech Select fund. Technology. The firm opened an office
The reason, four of the firm’s been hard to make strong exuberance has In order to generate in Silicon Valley in 1999, changed its
partners said in a joint interview, is that returns for some since faded the kind of returns that name to CRV in 2014 and moved fully to EU requests info from Meta, Australian banks
market conditions have changed for the
worse. The valuations for startups are
investments, there is a
frenzy to put money
CRV’s investors expected,
many startups — far more
the West Coast in 2021.
This is the second time the firm has
YouTube, Snapchat take down ‘celeb bait’ ads
too high relative to their potential for a behind new artificial intelligence ideas. than ever before — would cut its fund size. In 2002 CRV slashed its The EU Commission requested Meta said it had taken down some
payoff, the partners said. It is a paradox that explains why CRV have to wind up being worth $10 billion $1.2 billion fund to just $450 million. information on Wednesday from 8,000 “celeb bait” scam ads from
CRV’s decision is part of a reset that is ploughing ahead with a fund for very or more. Other firms, including Mohr Davidow YouTube, Snapchat, and TikTok on the Facebook and Instagram as part of a
is happening around the venture capital new startups and pulling back on “The data just doesn’t support that,” Ventures and Kleiner Perkins, made parameters used by their algorithms to new effort with Australian banks to
industry after the go-go years of the investing in the later rounds of more said Saar Gur, a partner at the firm. similar moves that year in an admission recommend content to users and their curb the practice. The scams often use
pandemic. In 2020 and 2021, many established outfits. “There aren’t many really big that the hype had surpassed reality for role in amplifying risks, including those AI generated images of celebrities to
startups and investment firms raised In 2022, CRV raised a $1 billion fund foundational companies and many early internet startups. related to the electoral process, mental trick consumers into giving money to
outsize funding, expecting the boom to for young startups and $500 million for big outcomes.” health, and protection of minors. REUTERS non-existent schemes. REUTERS
keep going. the Select fund, its second fund for If CRV kept investing at current ©2024 The New York Times News Service

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

VOLUME XXXI NUMBER 145

NEW DELHI | THURSDAY, 3 OCTOBER 2024

Mixed outlook
Manufacturing needs diversification and jobs focus
How US elections could affect India
Anticipate new and varied challenges depending backs. Let’s hope we get better results in India.

T
he Ministry of Statistics and Programme Implementation recently released When you add it all up, Mr Trump’s economic pro-
the results of the Annual Survey of Industries (ASI) for 2022-23 (FY23). on the outcome ILLUSTRATION: BINAY SINHA
posals are expected to increase the already substantial
Notably, in FY23, the Indian economy was still recovering from the steep US debt by an additional $4-5 trillion, compared to
decline in growth observed during the pandemic. However, the results around $1-2 trillion if Ms Harris is elected. Mr Trump
exhibit the resilience of India’s manufacturing in terms of input use, output, and would likely interfere with the US Federal Reserve’s
profit. The ASI covers the entire country and remains India’s principal source of interest rate policies and attempt to weaken the dollar,
complicating macroeconomic management in devel-
industrial statistics. While the manufacturing sector, which contributes around 17
oping countries like India.
per cent to India’s gross domestic product, did well during the period under review, Ms Harris is likely to maintain a hardline on China
its relatively small scale and concentration remain matters of concern. where the Biden administration’s export restrictions
In FY23, gross value added (GVA) in manufacturing at current prices grew on strategic technologies have hurt China, in the short-
around 7.3 per cent relative to the previous year. Industrial output also registered a term at least, much more than even Trump tariffs. She
steep growth rate of 21.45 per cent. It is worth noting that there was a sharp contraction will maintain the US’s positions on climate change and
in output in FY20 and FY21, before a bounce-back in FY22 and FY23. Besides, both foster clean energy technologies, encourage more
fixed and invested capital registered positive growth during the reference period. friend-shoring — such as in chip manufacture—which
Employment registered a growth rate of 7.43 per cent year-on-year. Average com- has benefitted India. Ms Harris would likely target any
pensation per employee in the sector also went up. Similarly, relative to 2018-19, a further tariff increases on China only — as seen with
the recent 100 per cent tariff on Chinese electric cars
pre-pandemic year, GVA per person engaged climbed up almost 26 per cent, indi-
and 50 per cent on solar panels.
cating an increase in labour productivity in manufacturing. Correspondingly, for Mr Trump is expected to take a much tougher
the same five-year period, average emoluments rose by only 22 per cent.

O
n November 5, the US will elect a new President, increases. In his first term Mr Trump’s tariffs — which stance on immigration, which would likely result in
The share of profit as a proportion of net value added (NVA) in manufacturing a decision that will have huge implications not President Biden kept—were enacted on about $300 even stricter limits on H1-B visas, more than 70 per
in FY23 remained above that in the pre-pandemic years of 2018-19 and 2019-20, only for the US, but for the entire world, includ- billion of imports. This time, he proposes 60 per cent cent of which are issued to Indians. India has bene-
while the share of wages and emoluments paid to workers during the period under ing India. A Kamala Harris victory would mark extraor- tariffs on China and 10-20 per cent tariffs on almost $3 fitted from the establishment of around 2,000 Global
consideration remained below the pre-pandemic levels. This is despite a year-on- dinary firsts — the first Black woman and the first person trillion worth of imports, levels last seen in the Smoot- Capability Centres, which have become hubs for
year decrease in the share of profit to NVA and an increase in the share of wages of Indian heritage to be elected President. Her election Hawley Tariff Act of 1930. Those beggar-thy-neighbour research and innovation, employing approximately
and emoluments in FY23 over FY22. Clearly, manufacturing in India is becoming would also be the most significant marker of the rise of policies triggered a global trade war and deepened the 1.5 million people. But, just as the shift of manufac-
more capital-intensive over time. Industrial activity also remains concentrated the Indian diaspora in the US. But global depression. turing to China created a backlash against the loss of
while she may bring some changes, The US is now India’s largest trad- blue-collar jobs — and led to Mr Trump’s rise in 2016
both geographically and across a few product categories. The ASI results show that
expect broad continuity with Joe ing partner, with bilateral trade in — expect eventually a similar backlash against the
only five states — Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh
Biden’s policies. If Donald Trump wins goods and services amounting to loss of white-collar jobs outsourced to India, irrespec-
— contributed more than 54 per cent to manufacturing GVA in FY23. Also, basic a second term, a major upheaval in US around $200 billion. India’s interests tive of who comes to power.
metals, chemical-product industries, coke and refined petroleum, motor vehicles, policies and positions is likely. lie in a more open global trade sys- Both are likely to expand bilateral defence and tech-
and food products, taken together, contributed more than 58 per cent to manufac- Mr Trump would, as stated, end tem, not trade wars. Despite closer nology ties with India to counter China. India should
turing output. In terms of employment, despite the post-pandemic recovery, only the war in Ukraine by forcing a deal India-US relations, Mr Trump’s mer- avail of these opportunities and cooperate more with
a little over 18 million people were employed in manufacturing in 2022-23. that would likely end up in Putin cantilist mindset will likely focus on the US in the QUAD — with Japan and Australia — an
India has consistently underperformed in unskilled and low-skilled manu- keeping much of what Russia has the small trade surplus India has initiative of the late Japanese Prime Minister Shinzo
facturing, and therefore has not been able to create enough jobs in manufacturing occupied. While India was affected with the US. Mr Trump labelled Abe that Mr Trump revived in 2017—as well as in the
to pull people out of agriculture. The concern must extend beyond merely generating by rising oil and fertiliser prices in India “the Tariff King” and imposed 14-country Indo-Pacific Economic Framework for
jobs to where such employment is being created and what share of output is allocated the early stage of this war, its subse- IF TRUTH BE TOLD a 25 per cent tariff on steel and 10 Prosperity (IPEF), a Biden initiative, and in other parts
quent purchase of discounted per cent on aluminium imports from of the world, including Africa. At the QUAD meeting
to workers. Economic growth at the expense of labour-income share will not be
Russian crude helped limit the eco- AJAY CHHIBBER India and removed India’s last month, with no border agreement with China in
sustainable in the long term in a labour-abundant country. Government intervention nomic impact. Mr Trump’s transac- Generalised System of Preferences sight, India deepened its engagement as part of its
in the form of lower corporation taxes, single-window clearances, and production- tional approach would again weaken status. India was forced to retaliate strategy of multi-alignment, signing on to three of the
linked incentive schemes has found limited success so far. Towards this end, India the North Atlantic Treaty Organization (Nato) by by imposing higher tariffs on 28 US products. India’s four pillars of the IPEF, but not the trade pillar.
will need to constantly work on improving conditions for attracting investment putting in doubt guaranteed support if a member is tariffs are now even higher, and India’s heavy reliance Despite no trade agreement, the potential for bilat-
and also ensure that it is not concentrated in a handful of states or in a few capital- attacked. Ms Harris, on the other hand, will maintain on intermediate products from China for its phar- eral US-India trade and economic relations remains
intensive product categories. the Biden administration’s position on Ukraine and maceutical and information technology industries huge and could reach $500-$600 billion by 2030 —
Nato. In West Asia, Mr Trump is staunchly pro-Israel — including the new iPhone— could be a major vul- especially in artificial intelligence and IT services,
and would support the country no matter what hap- nerability if a global trade war erupts. processed foods, healthcare, clean energy technolo-

War on spam pens. Ms Harris supports an internationally accepted

two-state solution and would take a tougher stance
with Israel compared to President Biden. But
Ms Harris would focus on supporting small busi-
nesses and greater competition to create jobs, along
with social programmess like child tax credits, which
gies, and defence production. India’s ambition to
become an advanced country by 2047 is predicated
on close economic, technological and defence coop-
Need to adopt a zero-tolerance approach President Biden’s weak handling of the conflict could have dramatically reduced poverty. She will increase eration with the US, regardless of who comes to power.

T
lead to a wider war even before the election. corporation taxes from 21 per cent to 28 per cent, But expect new and differing challenges depending
he Telecom Regulatory Authority of India (Trai), the sector regulator,
Mr Trump would again withdraw the US from the increase the income tax rate for the wealthy to around on how the US votes, and India must be prepared to
and the telecom industry have initiated action to curb spam calls and Paris Accords and give a freer path to energy companies 40 per cent (where it was during Bill Clinton’s time), deal with them.
messages on mobile phones, but these are early days to gauge the to, as he says, “Drill, Baby, Drill.” This would keep oil and raise the capital gains tax. India reduced its cor-
impact of such steps. While a start has been made by Trai through prices low, benefiting India but undermining global poration tax rate to 25 per cent — after Mr Trump The writer is distinguished visiting scholar, George Washington
mandatory whitelisting or registering uniform resource locators (URLs) and efforts to combat climate change. He would also extend reduced US rates to 21 per cent in 2018 — to encourage University, and co-author of Unshackling India (Harper-
over-the-top (OTT) links sent through commercial text messages to reduce the tax cuts set to expire in 2025, further increasing more investment. The cuts in the US did not encourage Collins India 2021), declared Best New Book in Economics by
potential fraud, the need of the hour is a 360-degree war on spam. fiscal deficits. He also plans to unleash huge tariff investment — but led to a huge increase in stock buy- the Financial Times for 2022
Spam has many sides to it. By their very nature, spam calls and messages
are unsolicited and a cause for considerable disruption and stress for mobile
phone users. But an even bigger problem is that of financial fraud as a result of
spam messages containing malicious URLs and other links that serve as phishing
tools for hackers. There have been many recent examples of mobile users falling
prey to such fraud attempts and experiencing financial loss after clicking on
The evolving FDI realities
“O
the links where senders pose as banks, insurance companies, e-commerce firms ut of the question.” That was Commerce Confederation of All India Traders (CAIT), was based ments, and the expansion of e-commerce. But when
or any other legitimate commercial entity. and Industry Minister Piyush Goyal’s reply on a report by the Competition Commission of India it comes to Amazon and Walmart-owned Flipkart, he’s
Among telcos, Bharti Airtel has taken the lead in red-flagging spam calls to Business Standard in an interview a few (CCI) regarding violations of e-commerce FDI norms clear that they have breached rules and adversely
and SMSes through an internal artificial intelligence-based system. In a way, it days ago when asked about the scope for foreign direct by Amazon and Flipkart. The CCI had started investi- impacted Indian traders.
has replaced the need for a service like Truecaller, which identifies spam calls. investment (FDI) liberalisation in multi-brand retail. gating the case way back in 2019, when Delhi Vyapar “Unhealthy business practices’’ and “gross violation
Other service providers must also come up with similar solutions. However, This remark coincides with India celebrating 10 years Mahasangh, an affiliate of the CAIT, filed a petition of rules and policies’’ by foreign-funded e-commerce
the Trai initiative on whitelisting of links that are typically sent through com- of its signature scheme: Make in India. with the antitrust body, alleging that companies have resulted in market disruption, much
It’s a different matter that FDI in e-commerce majors favoured some to the “disadvantage of traditional retailers in terms
mercial messages will go a long way in preventing financial frauds. This is
multi-brand retail is already allowed, sellers over others. In the same case, of shift of consumers due to uneven level-playing
meant to weed out the malicious links that could cause harm to a user.
but has remained only on paper the the CCI has now sought financial field,’’ Mr Khandelwal argues on behalf of some 90
As has been reported, the process of whitelisting links in a constantly evolv- last 10 years. The Congress-led details from the e-commerce compa- million traders in India (grown from 50 million 10
ing scenario is challenging. Most large banks and insurance companies have United Progressive Alliance govern- nies to determine a penalty after a years ago). He admits that while a large number of
been able to register for whitelisting, but there are still thousands of commercial ment announced a multi-brand court hearing. traders have been adversely affected due to e-com-
entities waiting to go through the process. This will take time and patience. retail policy in 2012, allowing up to This is not the only instance when merce growth, it has also forced small traders to inno-
The regulator and the industry should keep working together to stop the malice 51 per cent FDI. However, while inter- Indian retail has confronted foreign vate. Over the last decade, traditional retailers have
in the system. In addition, users must stay alert and learn to detect signs of national retail companies were still majors in the e-commerce space. The either adapted by going digital or faced increased pres-
potential fraud in commercial messages. The government, the regulator, and strategising their India entry, the most consistent complaint against sure to maintain relevance in the rapidly evolving
the industry could devise a comprehensive plan for consumer education.
The government can play a significant role in this war on scam. First, there
Bharatiya Janata Party-led National
Democratic Alliance government NOT FOR PROFIT the global giants revolves around the
discounts they offer because of their
retail landscape. As for quick commerce, he agrees
that it’s poised to potentially harm traditional retail
came to power in 2014, altering the NIVEDITA MOOKERJI deep pockets. To be sure, 100 per cent significantly in urban areas.
should be zero tolerance when commercial entities or individuals are found
retail landscape for years to come. FDI is allowed in online marketplace How is the impact of FDI in multi-brand retail going
sharing mobile numbers of people without their permission. This is seen as the Since then, the multi-brand retail when players like Amazon and to be different? It has the potential to disrupt the phys-
root cause of spam calls and messages skyrocketing in recent times. To give this policy has been kept in abeyance. Flipkart operate only as online platforms, hosting sell- ical retail market more directly, as it draws customers
a legal backing, the government should hasten bringing the rules for the Digital This government’s opposition to FDI in multi-brand ers who are not associated entities. Online majors insist away from the catchment areas of kirana stores, he
Personal Data Protection (DPDP) Act. Meant to regulate the processing of digital retail is no secret, nor is the reason behind it. But, are they are compliant with the FDI norms, but the other says. The consolation is that e-commerce currently
personal data, the DPDP Act was passed in Parliament last year but is yet to the mom-and-pop stores and local traders, who are side is not convinced. accounts for only 8 to 10 per cent of the total retail
come into force. Without wasting any more time, the DPDP Act needs to be considered a critical vote bank for the BJP, a happy lot A quick chat with Praveen Khandelwal, founder of market in India, and, therefore, its impact on overall
brought with the goal of protecting users’ data and thereby minimising fraud. without FDI in multi-brand being activated? Or, have CAIT and now a BJP MP from Delhi’s Chandni Chowk retail will be relatively less.
In the past, Trai has come up with regulations to curb unsolicited calls and the neighbourhood corner stores actually gained from constituency, reveals the domestic traders’ angst Against this backdrop, we have to realise that e-
messages but they have largely remained ineffective. Besides technology coming the government’s stand on FDI in multi-brand retail? against Walmart and Amazon. First the facts: Some commerce and quick commerce will grow at a much
From the look of it, domestic traders are an angry 10 years ago, the Indian retail market was valued at faster clip from here on, and a physical foreign giant
to the aid of the unregistered telemarketing entities in spamming consumers, tele-
lot. Earlier this week, traders got together to discuss a around $500 billion. In 2024, it’s estimated to touch may not be very different from an online major in
com operators have often been found taking a soft approach in dealing with the white paper on the impact e-commerce giants such $1.3 trillion, going by the industry projections. He terms of impact on the retail landscape. The realities
issue. The latest whitelisting step by Trai should not fall short of what it promises. as Flipkart (owned by Walmart) and Amazon have had attributes this growth in retail space to economic of 2024 cannot be compared with those of 10 or 20
on them. The white paper, put together by the reforms, increased consumer spending, tech advance- years ago.

How India shapes its development aid in Afghanistan, as well as the Salma
Dam, which was renamed the India-
Afghanistan Friendship Dam. Besides,
Myanmar-Thailand Trilateral Highway.
Once completed, the Trilateral Highway
will provide seamless connectivity for
for internally displaced persons in
Northern and Eastern provinces has
been completed.
India also built the Shahtoot Dam, the north-eastern states of India with A comparison of Indian and African
President Lyndon B Johnson used the and hands-on experience offer which provides water to Kabul’s Myanmar, Thailand and other Asean developmental assistance is best
PL-480 as leverage to secure support for comprehensive accounts of facets of residents. India embarked on high countries. India has also funded the captured by the African proverb, “If you
US foreign policy goals, even placing India’s development assistance through impact community development Myanmar Institute of Information give a man a fish, you feed him for a day;
famine aid to India on a limited basis partnerships, lines of credit and the projects in all 34 provinces of Technology at Mandalay and the If you teach a man how to fish, you feed
until he received assurances that the Indian Technical and Economic Afghanistan. Through the Indian Advanced Centre for Agriculture and him for a lifetime”. This is how one can
Indian government would temper Cooperation (ITEC) programme under Council of Cultural Relations (ICCR), Education at Naypyidaw. The political distinguish between the nature of
criticism of US policy on Vietnam. the ministry of external affairs, India extends a slugfest in Nepal and Chinese and Indian aid. The predatory
BOOK REVIEW The edited volume under review, leveraging India’s know-how and large number of
INDIA’S DEVELOPMENT China’s and mercantilist nature of China’s
consisting of proceedings of a seminar on connecting the dots in terms of scholarships to PARTNERSHIP: chequebook developmental aid; and its hidden
RUP NARAYAN DAS India’s development assistance, analyses addressing local needs rather than Afghan nationals to diplomacy has agenda in its flagship programme “One
Expanding Vistas
India’s development assistance in various superimposing an Indian template study in India. So Author: Nutan Kapoor somewhat Belt, one Road” is now laid bare in Sri

I
t is axiomatic in international countries, particularly the immediate suited to New Delhi’s strategic aims only. far, India has Mahawar & hampered India’s Lanka, Bangladesh, Africa and
diplomacy that foreign aid is not a and extended neighbourhood. It is All the chapters in the book are quite offered more than Dhrubjyoti Bhattarjee engagement in elsewhere —so much so that Italy has
philanthropic or altruistic noteworthy that India is still a developing useful but some merit mention. The 1,000 scholarships Publisher: KW Nepal. In spite of withdrawn from it.
instrument. It is, in fact, considered an economy aspiring to be a developed chapter on Afghanistan titled “India’s to Afghan Publishers this, India is The takeaways from the volume are
instrument of foreign policy and a economy. In spite of this, India extends Soft Power Diplomacy in Afghanistan: nationals. Pages: 384 developing rail succinctly surmised by the editors in
country’s external engagement. Every developmental assistance to needy Need for a Policy Rethink?” by Shanthie In other essays, connectivity in the the introduction, underlining the need
Price: ~1,580
country capable of extending foreign aid countries, particularly in Asia and Africa. Mariet D’Souza is insightful. It is a such as those by landlocked to broaden the scope of development
has combined this ability with its foreign India’s aid diplomacy is carried out different matter that India has not Nihar R Nayak, country. partnerships beyond a government-to-
policy goals and strategic objectives. through two broad omnibus recognised the Taliban regime in Biswajit Nag, Medha Bisht and A state-of-the-art Cultural Centre government approach to include the
Developed countries such as the USA architectures —“Development Afghanistan, which regained control in Angshuman Choudhury, we get an idea has been constructed at Jaffna under private sector and civil society, and to
have used foreign aid as a tool to redirect Cooperation” and “Economic 2021. But before the Taliban’s of other aspects of India’s aid the India-Sri Lanka Development strengthen the interface between civil
spending on military equipment for Diplomacy”. reinstatement, India had robust engagement with immediate Partnership. India’s development society and local communities for
security purposes. For example, the US The Development Partnership economic engagement in Afghanistan neighbours. For instance, India assistance towards the island neighbour better reach and sustainable growth.
negotiated the Public Law 480 Administration (DPA) was created in in spite of security challenges. provides a number of ICCR and ITEC has been people centric. For example, a
agreement (also known as the Food for January 2012 to handle India’s aid The principal focus of India’s scholarships to Bhutanese nationals. housing project involving 50,000 The reviewer is a former senior fellow of the
Peace Act) to extend foreign assistance projects from conception and launch to development assistance in Afghanistan India has also built the Paro airport. A houses for resettlement of internally Indian Council of Social Science Research
to poor countries in an attempt to execution and completion. Various has been capacity development of major India supported project is the displaced persons is progressing well. and Manohar Parrikar Institute for
dissuade those countries from accepting chapters in the book written by scholars Afghan nationals and institutions. India Kaladan Multi Modal Transit Transport The construction and repair of 46,000 Defence Studies and Analyses. These
help from its Cold War adversaries. and diplomats with domain expertise built the majestic Parliament building project, aimed at connecting the India- houses under an owner-driven process views are personal
10
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NEW DELHI | THURSDAY, 3 OCTOBER 2024 1
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NEW DELHI | THURSDAY, 3 OCTOBER 2024 TAKE TWO 11 <

TROUBLE IN
According to available data, the country owned 79.3 per cent of Tafe, while AGCO 24, posting an impressive 7.5 per cent
had hardly 37,000 tractors in 1960, all HARVEST TIME (No. of units sold) had the rest 20.70 per cent. Tafe’s annual growth. Of this, around 12 per cent were
imported and mostly war-surplus pro- n FY23 n FY24 % chge turnover is reportedly around ~12,500 from Tafe (see chart).
ducts. Even today, tractor sales are crore. The US company’s annual net sales The Massey Ferguson brand adorns
Total 829,639 892,313 7.55
a key indicator of the agricultural in 2023 stood at $14.4 billion. Based on the more than 55 per cent of Tafe’s 180,000

PARADISE
and rural economy. current market capitalisation of $7.35 bil- tractors in a year, including exports. Tafe
It was on January 1, 1961, that the Mahindra & 176,763 lion for AGCO, Tafe shares in it are valued exports tractors to more than 80 countries.
Mahindra 204,737 15.8
founder of the Amalgamations Group, at around $1.19 billion. In 2016, exports used to generate 13 per
Sivasailam Anantharamakrishnan, fondly Swaraj 128,725 The termination episode is seen to cent of its tractor sales but dipped to 8 per
called J, started an office for Tafe on (M&M) 159,958 24.2 have elements of a boardroom battle dat- cent due to economic headwinds in the key
Kothari Road to manufacture Massey ing back to 2021. A tussle has been going markets of Turkey and Africa and other
Tafe and AGCO have been allies for 64 years. Ferguson tractors in India. Thus began the Sonalika 97,775
114,207 16.8 on between AGCO’s management and markets in Asia, besides a partial slowdown
Tafe is the single largest shareholder in AGCO story of Tafe and one of the longest-stand-
ing trademark tie-ups. 92,599
Tafe, which wants a board restructuring
and strategic transformation.
in the US market, where tractors are sold
through AGCO, says the CRISIL report.
Tafe 108,101
and AGCO holds nearly 21% in Tafe. Why are J's legacy was carried forward by his 16.7 With the conflict intensifying on Tafe has a strong distribution network
they suddenly fighting over Massey Ferguson? son, Anantharamakrishnan Sivasailam
and now by granddaughter Mallika
79,543
Escorts 89,830 12.9
Monday, Tafe approached US shareholders
through a letter stating that its “pragmatic
of more than 2,000 dealers supporting its
tractor brands: Tafe, Eicher Tractors, and
Srinivasan (Anantharamakrishnan Note: Total doesn't add up as it doesn’t include suggestions” for growth had been ignored. IMT, in addition to Massey Ferguson. MF is
SHINE JACOB Sivasailam's daughter). some smaller brands Source: Fada “In response, AGCO management took said to have a special pull for consumers.
Chennai, 2 October Tafe is the single largest shareholder in measures to disenfranchise Tafe and iso- The termination of the trademark will

“Ghee khao desi, aur chalao Massey.” This

AGCO, the third largest farm equipment
manufacturer in the world after Deere &
BREWING BATTLE late its representative on the board,” it said.
AGCO describes Tafe’s actions as a
not only affect the commercial ambitions
of both companies but can
is the advertising line that would come to Company and CNH Industrial. Yet, on 1960: Tafe formed as a joint venture “self-serving campaign”. also cause concern among
mind for several Indians at the mention of Monday, AGCO announced termination of between Massey Ferguson, a part of the Srinivasan is Tafe’s representative on the existing Massey
tractor brand Massey Ferguson. However, its agreements with Tafe, including the AGCO Group, and Amalgamations AGCO’s 10-member board. None of the Ferguson users in India,
the story of the brand, currently at the cen- brand licence for Massey Ferguson tractors. 1974: Signs the first trademark other current directors owns more than 1 which number more than
tre of a dispute between Tractors and Farm “Tafe is no longer an approved agreement for Massey Ferguson per cent of the company’s shares. Tafe 3 million.
Equipment (Tafe) and United States-based licensee, user, distributor, or seller of believes that since Eric Hansotia
AGCO Corporation, goes much beyond the Massey Ferguson products,” the US com- 1994: Inks new trademark deal allowing assumed both the Chairman and Chief
advertisement. pany said, adding that the termination was Tafe exclusive right to use MF brand name Executive Officer’s roles in 2021, the com-
It symbolises the grit, dreams, due to inappropriate and unauthorised for its tractor operations in India pany has suffered.
determination, and pas- actions by Tafe. 2012: Tafe acquires AGCO Corporation “To make matters worse, combining
sion of a young India in This occurred despite legal relief being shares; it is now the latter’s single largest these roles appears to have compromised
the 1960s that tried to in place for Tafe following a similar notice stakeholder with 16.3% the board’s ability to effectively oversee
ensure that the agri- in April 2024. Consequently, the Chennai- management and hold Hansotia account-
cultural sector, on based company has again approached the April 2024: AGCO terminates trademark, able,” Tafe’s letter said. It pointed out
which 80 per cent of local court with a contempt petition against allegedly without notice the company’s share price had
the country AGCO. In April, Tafe had argued that the May 2024: Chennai commercial court dropped by approximately 19 per cent
depended for their termination was executed without notice. grants relief to Tafe over the past year (as of Monday), while
earnings at that time, its proxy peers’ shares had increased by an
was modernised. Why the war Sep 30, 2024: AGCO issues termination average of 14 per cent.
Tafe was founded as a joint venture notices to Tafe, ending their 28-year Tafe believes AGCO is not allowing
between Massey Ferguson, a part of the partnership shareholders to take
AGCO Group, and Amalgamations in 1960. Sep 30, 2024: Tafe moves Chennai court action to protect their
It was only in 1974 that the two companies against AGCO for disobedience of investment or “break
first entered into a trademark agreement the orders of the court glass in case of
for tractors. This deal was further emergency”.
expanded in 1994, granting Tafe exclusive
right to use the Massey Ferguson (MF) Why brand
brand name for its tractors in India. Bangladesh, and Bhutan. Since 2012, Tafe, MF matters
Tractors comprise more than 85 per cent under Srinivasan’s leadership, took a leap According to data
of Tafe’s revenues, with the rest coming from being just a trademark holder of MF from the
from engine sales and service, gears, engi- to becoming the single largest shareholder Federation of
neering plastic components, and other pro- in AGCO, now holding a 16.3 per cent stake Automobile Dealers
ducts, says a CRISIL report from last year. in the company. Associations, the
By early 2024, Tafe held MF brand By March 2023, Simpson & Co, a hold- Indian tractor market
rights for India, Nepal, Sri Lanka, ing company of the Amalgamations group, saw annual sales of 892,313 units in 2023-
12
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NEW DELHI | THURSDAY, 3 OCTOBER 2024 1
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NEW DELHI | THURSDAY, 3 OCTOBER 2024 BIG GUNS IN WAITING 13 <

10 LARGECAPS RIPE FOR PICKING

Apart from trading at a discount to their historic valuations, many companies are industry leaders with superior
balance sheets and financial ratios, write KRISHNA KANT & RAM PRASAD SAHU

I AT A DISCOUNT
ndian equities continue their upward ratio of 4.3x. P/B ratio is used to determine
trajectory but largecaps, those stocks
valued at ~20,000 crore or more, con- Largecap-oriented BSE Sensex has
whether a company is overvalued or
undervalued.
HDFCBank*
tinue to underperform the broader market. lagged BSE MidCap and BSE SmallCap Similarly, Hindustan Unilever is now n The lender’s stock has HDFC Bank
The largecap-oriented BSE Sensex is up trading at a P/B ratio of 13.6x down from been a laggard after its
31.9 per cent since the end of October last its 5-year average P/B ratio of 20.9x.
BSE Sensex 140
merger with HDFC in July 128.0
year lagging mid and smallcap indices by In contrast, there has been a valuation
last year, grossly
a big margin. The BSE MidCap index has rerating in the broader market. The Base = 100
risen 58.4 per cent and the BSE SmallCap Sensex’s current P/B ratio is 27 per cent
underperforming the 120
has rallied 55.6 per cent during the period. higher than its 5-year average valuation benchmark and peers
This is not a short-term phenomenon. ratio of 3.4x while the MidCap index is cur- like ICICI Bank and
Smaller firms have been beating their larg- rently trading at a 68 per cent premium to Axis Bank 100
er peers on the bourses for a while. The its 5-year average valuation. On a price-to- n This can be attributed to 113.1
BSE Sensex is up 106.9 per cent since earnings (P/E) ratio basis, many of these HDFC Bank’s sub-par 80
January 2020 compared to a 220 per cent largecap stocks are trading at a discount Sep 29,’23 Oct 1,’24
earnings growth after
rally in BSE MidCap and 291.7 per cent to their respective 5-year valuation.
jump in the BSE SmallCap index during The discounted valuation of largecap
merger due to high
the period. stocks is an opportunity for investors as credit-to-deposit ratio and contraction in net
A relatively muted show by largecap most of these companies are industry lead- interest margins
stocks can be attributed to domestic retail ers. Their current valuation assumes a pes- n The largest private sector lender’s gross interest
and high net worth investors’ preference uation. This is especially true in sectors simistic growth and earnings scenario for income was up 11.9 per cent Y-o-Y and net profit
for mid (valued between ~5,000-20,000 such as banking and finance, fast-moving the companies, even as the rest of corpo- was down 1.2 per cent in Q1FY25, when adjusted for
crore) and smallcap (less than ~5,000 crore) consumer goods (FMCG), cement, and rate India is expected to do well. This
merger with HDFC
stocks. This has created a situation where pharmaceuticals. For example, the largest dichotomy will not last for long, as markets
many of India’s top companies and indus- private sector lender, HDFC Bank, is cur- have a tendency to revert to the mean. n On the brighter side, NIMs were up by 4 basis points
try leaders are now trading at a discounted rently trading at a price-to-book value (P/B) Here are ten stocks from the BSE200 sequentially and C/D ratio declined by 6 per cent to
valuation compared to both, their histori- of 2.9 times, down from its 5-year average index that have seen the biggest derating 104 per cent in Q1FY25
cal valuation and the broader market val- P/B ratio of 3.1x and Sensex’s current P/B in their valuation in recent quarters.
ILLUSTRATION: BINAY SINHA n According to brokerages, HDFC Bank is going
through a period of adjustment as it is replacing

Asian Paints Bajaj Finance Biocon erstwhile HDFC’s borrowings as they mature,
hurting its earnings in near term
n The stock has lagged in Bajaj Finance n Its April–June (Q1FY25) Biocon
recent months, up just 1.4 BSE Sensex 140 quarter performance was BSE Sensex 160
per cent, on concerns 128.0 hit by a sluggish show 136.1
about elevated credit cost across segments and the 140
Base = 100 120
and rise in delinquencies divestment of its India
Base = 100
in retail loans portfolio to Eris 120
98.6 Lifesciences
n The retail lender’s 100
consolidated net profit n Biocon’s efforts to cut 100
was up 13.8 per cent Y-o- research and 128.0
Y, while gross interest 80 development costs and 80
income was up 28.3 per Sep 29,’23 Oct 1,’24 improve margins in Q1 Sep 29,’23 Oct 1,’24
cent Y-o-Y in Q1FY25 was hit by employee costs
n Interest cost was up 38.5 per cent Y-o-Y in Q1FY25 while from the Viatris
Current 5-yr avg TTM Y-o-Y chg (%)
provisions and write-off for bad loans were up acquisition, leading to margins touching a new low of Market
69.3 per cent Y-o-Y 18 per cent PE PB RoE P/E P/B RoE cap Price
n Recent price hike of 1 per Asian Paints
cent indicates that the n India’s largest biopharmaceutical firm is looking at (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~)
BSE Sensex 140 n Analysts expect the pain to continue in the near-term
largest decorative paint due to stress in retail lending and higher credit cost that reducing debt and scaling down capital expenditure 19.6 2.9 14.9 20.3 3.1 15.2 24.0 8.1 13.16 1,726.2
128.0 which should help to strengthen its balance sheet
maker in the country could put pressure on growth
continues to charge a Base = 100 120 n JM Financial Research is positive on Biocon’s outlook
n The company has outlined its latest rolling long-range
premium and is unruffled and underlying potential of biosimilars business
103.7 strategy (LRS) to be implemented during FY24-28
by competition while
aspiring for double-digit 100 with its entry into newer segments and more
profitable cross-selling
given its enviable pipeline, integrated business, and
large total addressable market Nestlé India
volume growth and n It is trading at a 45 per cent discount to its five-year n Most brokerages had cut
improving operating profit Nestlé India
80 average — is the highest in this list their earnings estimates BSE Sensex
margins, says Centrum Sep 29,’23 Oct 1,’24 Current 5-yr avg TTM Y-o-Y chg (%) 140
after Nestlé India missed
Research Market 128.0
P/E P/B RoE P/E P/B RoE cap Price Current 5-yr avg TTM Y-o-Y chg (%) estimates in Q1 130
n In addition to the price hike, correction in crude oil prices (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~) Market
P/E P/B RoE P/E P/B RoE cap Price n There could be a growth 120
is expected to support the company’s gross margins, as moderation in the near
32.2 6.3 19.5 43.7 6.9 16.9 31.7 20.9 4.76 7,702.3 (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~)
well as for other paint makers term after three years of 110
28.0 2.2 8.0 51.2 3.8 7.3 18.5 276.6 0.44 370.4
n While the competitive intensity continues to remain outperformance over 120.3 100
high, the conservative operating profit margin guidance
(Asian Paints’ at 18-20 per cent) provides sufficient room Hindustan Unilever peers, analysts say
n Antique Stock Broking, Base = 100 90
for brand/channel spends, says analysts at JP Morgan
Research n The FMCG leader’s
performance in the Hindustan Unilever
Indraprastha Gas however, says that over
the long term, Nestlé
Sep 29,’23 Oct 1,’24

n Improvement in discretionary spends, like painting, is BSE Sensex 140 n Indraprastha Gas’s (IGL) stock would be able to drive strong innovation and
September quarter is Indraprastha Gas
also likely given some easing of inflation, potential 128.0 has lagged both broader distribution-led growth
estimated to be broadly BSE Sensex
interest rate cuts, and pickup in rural incomes market as well as its peers 140 n Input cost inflation could weigh on the profitability.
similar to that of Q1, Base = 100 128.0
120 such as Mahanagar Gas, However, any price action to counter the sharp uptick in
brokerages expect
Current 5-yr avg TTM Y-o-Y chg (%) an improvement Gujarat Gas, and Adani Total Base = 100 120 its commodity basket due to increase in wheat, sugar,
Market Gas in recent quarters cocoa beans, coffee, and milk prices could offer relief
P/E P/B RoE P/E P/B RoE cap Price over the next couple 100
(x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~) of quarters 118.5 n This can be attributed to IGL’s 100 n Historically, the company has shown an ability to
n On the margin front, the muted revenue and earnings 122.9 bounce back from every debacle and after every mega
62.5 17.0 27.1 69.7 17.5 25.6 0.7 9.5 3.14 3,277.2 80
firm is witnessing a mixed Sep 29,’23 Oct 1,’24 growth due to lower-than- capacity-expansion programme, says HDFC Securities. A
expected gas volumes 80 sharp correction, thus, would be a buying opportunity
pricing environment. The Sep 29,’23 Oct 1,’24
declining crude oil and soda ash prices provide some n IGL’s net sales were up just
Berger Paints India relief, but inflationary trends in maize, tea, coffee,
Malaysian palm oil, and palm fatty acids are likely to
3.3 per cent Y-o-Y, while net profit was down 8.4 per cent
in Q1FY25
challenge margin stability, says Motilal Oswal n On the brighter side, IGL remains debt-free, consistently
Research generates free cash flows and its RoE at 20.2 per cent is
n With more than 75 per cent of districts receiving among best in the industry
normal/above normal rainfall, JP Morgan expects n The IGL management has now guided for 10-12 per cent
increase in minimum support price and stabilising Y-o-Y growth in gas volumes on a long-term basis
consumer inflation to aid rural demand pickup compared to 5 per cent growth in Q1FY25
n In addition to the recovery in rural demand, n Brokerages, however, remain cautious on the stock and
transformation of the portfolio into high-growth anticipate lower than anticipated volumes and earnings
spaces will help the volume growth to recover further growth for the company in the near term
in the coming quarters
Current 5-yr avg TTM Y-o-Y chg (%) Current 5-yr avg TTM Y-o-Y chg (%)
Current 5-yr avg TTM Y-o-Y chg (%) Market Market
n With a value growth of 2.4 Market P/E P/B RoE P/E P/B RoE cap Price P/E P/B RoE P/E P/B RoE cap Price
Berger Paints India
P/E P/B RoE P/E P/B RoE cap Price (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~) (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~)
per cent and volume BSE Sensex 140 (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~) 19.8 4.0 20.2 20.6 4.2 20.6 -1.6 15.7 0.39 558.3 81.6 79.3 97.1 78.1 82.5 105.9 7.7 19.1 2.60 2,706.8
growth of 11.8 per cent in 128.0
the June quarter, it has 67.4 13.6 20.2 62.1 20.9 31.4 1.3 0.4 6.86 2,922.0
outperformed the Base = 100 120
industry, which saw an
0.8 per cent revenue
decline and 8 per cent
100 Shree Cement SBI Cards and Payment Services
volume growth n SBI Card has been an underperformer on the bourses
109.1 n The Kolkata-based firm has struggled on the bourses
n The volume-value gap is 80 with the stock up just 3 per cent in the last 12 months as with its share price down 2.2 per cent in the past one
expected to narrow in the Sep 29,’23 Oct 1,’24 year compared to a 30 per cent rally in the BSE Sensex
against a nearly 30 per cent rally in
September quarter as the Sensex and 45 per cent rise in cement industry leader n This can be attributed to the company's muted
company is getting some traction in the premium UltraTech Cement earnings growth in recent quarters besides a rise in
segment of its portfolio bad loans in its credit card loan portfolio
n This can be attributed to a sharp fall in Shree Cement’s
n With crude oil prices at yearly lows, the raw material Ebitda, or operating profit, due to lower-than-expected n Y-o-Y growth of 0.2 per cent in net profit and 11.4 per
cost basket should improve for the company realisation and a higher-than-expected operating and cent in total revenues in Q1FY25 has been the slowest
n Nirmal Bang Research expects the benefit to come with depreciation cost in the last three years
a lag, though some improvement is expected in gross n In Q1FY25, the cement maker’s net sales were up 1.8 per n A slowdown in credit card spends and higher
margin in Q2FY25 and beyond Shree Cement provision for bad loans have weighed on earnings SBI Cards and Payment
cent Y-o-Y, Ebitda rose 4.3 per cent, and net profit was Services
BSE Sensex 140 140
n The stock is trading at a 19 per cent discount to its down by 51.3 per cent n SBI Cards’ interest cost was up 34.3 per cent Y-o-Y, BSE Sensex 128.0
five year average price to earnings and can be n Depreciation cost was up 107.5 per cent Y-o-Y in Q1FY25 128.0 130 while provisions for bad loans were up 53.2 per cent
looked at on dips as it commissioned new capacity Y-o-Y in Q1FY25 Base = 100 120
Base = 100 120
104.0 97.4
Current 5-yr avg TTM Y-o-Y chg (%) Current 5-yr avg TTM Y-o-Y chg (%) 110 Current 5-yr avg TTM Y-o-Y chg (%) 100
Market Market Market
P/E P/B RoE P/E P/B RoE cap Price P/E P/B RoE P/E P/B RoE cap Price 100 P/E P/B RoE P/E P/B RoE cap Price
(x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~) (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~) (x) (x) ( %) (x) (x) ( %) Revenues PAT (~ trn) (~) 80
90
61.8 13.4 21.7 76.2 16.5 21.6 3.9 21.5 0.72 620.7 45.0 4.6 10.2 47.6 5.2 11.7 11.2 34.4 0.95 26,502.2 Sep 29,’23 Oct 1,’24 31.1 6.2 19.9 48.6 9.5 20.5 20.3 8.3 0.73 770.4 Sep 29,’23 Oct 1,’24

Data as on October 1, 2024; TTM: Trailing 12 months ended June 2024; PAT: Profit after tax; *Includes HDFC numbers prior to its merger with HDFC Bank; P/E: Price-to-earnings ratio; P/B: Price-to-book ratio; RoE : Return on equity Sources: Capitaline, Bloomberg; compiled by BS Research Bureau
14
>
NEW DELHI | THURSDAY, 3 OCTOBER 2024 1

Education sector needs to Travel bookings soar as fans

technology and deep learning.
“Our collaboration with IIT Patna
and leading industry partners is
focused on building specialised talent rush for Coldplay, Diljit concerts
pipelines to develop individuals with

prepare for AI-driven future

advanced technical skills and deep PRESS TRUST OF INDIA report, adding that the plat-
industry expertise. Through this part- Mumbai, 2 October form has observed a sharp rise
nership, we equip individuals to seam- in flight, train, and bus book-
lessly transition into high-demand Upcoming concerts of British ings and searches to key con-
roles across AI, automation, and other band Coldplay in Mumbai and cert cities.
emerging technologies,” he added. Indian singer Diljit Dosanjh in Mumbai has experienced a
The second of a three-part series reports Similarly, IIT Kanpur, which intro- Chandigarh and other cities staggering 350 per cent year-
duced a four-week online certificate have triggered a travel rush by on-year (Y-o-Y) increase in
on how educational institutes are addressing programme in AI, ML, and deep learn- fans, leading to over 300 per flight bookings, said the
skill shortage in artificial intelligence ing (DL) last month, inked a pact with
the National Health Authority (NHA).
cent surge in flight bookings,
online travel agency ixigo said
report. Chandigarh, one of the
destinations for the DIL-UMI-
Under the agreement, IIT Kanpur in a report on Wednesday. NATI India tour, has seen a
SANKET KOUL It also recommends that India will develop a consent management The Grammy award-win- 300 per cent Y-o-Y surge in
New Delhi, 2 October must aim for at least 5 per cent of system for research, a health database ning band Coldplay is sched- flight bookings, it said. Other
global contribution in the next three- and an open benchmark platform for uled to perform at Mumbai's DIL-UMINATI concert cities

A
major challenge in unlocking five years. It also said that research in comparing and validating AI models DY Patil Stadium during like Delhi, Ahmedabad, and
the full potential of artificial AI — which is concentrated among under the Ayushman Bharat Digital January 18-21 as part of its Indore have also recorded an
intelligence (AI) is access to the top 20 institutions in the country Mission (ABDM). ‘Music of the Spheres’ world average 100 per cent Y-o-Y
skilled talent, a problem that even — should focus on exponentially The platform will subsequently be tour. Punjabi singing sensation growth in flight bookings on
India, with one of the largest AI talent increasing capacity. operated and governed by the NHA. Diljit Dosanjh will perform at their respective event dates.
pools, is grappling with. When it comes to AI-focused a live concert in Chandigarh in “We’ve observed a signifi-
While numerous reports highlight courses, too, Indian institutes are just Collaboration key to enhance December this year as part of cant shift in Indian travellers’
that India ranks among the global about ramping up their offerings. employability, say experts his DIL-UMINATI India tour. preferences, with more people
leaders in AI, machine learning (ML), For instance, of the 23 IITs across Industry insiders feel that industry- The country is witnessing willing to spend on experi-
and data analytics talent, there is still the country, only 11— Hyderabad, academia collaboration such as the one a surge in travel bookings as ences like music concerts and
a significant shortage. Many com-
panies are struggling to find the right
Kharagpur, Madras, Bombay, Roorkee,
Ropar, Bhilai, Gandhinagar, Jodhpur, EXISTING higher demand-supply disparity
for roles such as machine
happening in IITs can enhance employ-
ability of candidates in the AI sector.
fans flock to see these two live
performances, said the ixigo
festivals,” ixigo Group CEO
Aloke Bajpai said.
expertise.
According to
Patna and Kanpur — currently offer a
course in AI and data
ROADBLOCKS learning engineers, data
scientists, and data architects,
Commenting on how such collabo-
rations are trying to change the land-
nWhile India ranks among the
Nasscom’s State of Data
Science & AI Skills in
sciences.
IIT-Madras became the global leaders in AI, machine
ranging 60-73% scape, Reddy said that through its
apprenticeship model, TeamLease is [ TECH DIGEST ]
India report, the current latest entrant to this list this learning, and data analytics nOf the 23 IITs across the country, providing formal education in part-
AI skills gap in India year by introducing a talent, there is still a significant only 11 offer a course in AI and nership with IIT Patna and other pre- mybs.in/tech
stands at 51 per cent. BTech in AI and Data shortage data sciences mier institutions.
There is a higher Analytics. The course is nMany companies are struggling nIIT-Madras became the latest
It is equipping learners with both WhatsApp introduces filters and
demand-supply disparity being offered through the academic proficiency and practical
for roles such as machine Wadhwani School of Data
to find the right expertise entrant this year by introducing a expertise. backgrounds for video calls
learning engineers, data INDIA’S AI Science and AI, established nThe AI skills gap in India BTech course in AI and Data “The goal is to ensure that students
scientists, DevOps engi-
neers, and data archi-
MOMENT with an endowment of ~110
crore by the Wadhwani
currently stands at 51%, with a Analytics become highly employable even
before they enter the workforce. This
WhatsApp is offering users new options to change their
background or add a filter during video calls. The
tects. Here, the demand- PART-II Impact Trust. is the driving rationale behind our introduced filters include Warm, Cool, Black & White,
supply gap is between 60 A spokesperson for the said a senior executive from a HR National Skill Development Apprenticeship-Linked Degree and Fisheye, among others. Background options consist
and 73 per cent. Wadhwani Impact Trust company. Corporation (NSDC) and Teamlease Programs, Diploma Programs of Blur, Living Room, Office, Café, Pebbles, Foodie,
Experts and industry players told said the course includes collaboration EdTech. The institute signed a mem- (AEDPs), and short-term certificat- Smoosh, Beach, Sunset, Celebration, and Forest. These
Business Standard that there is an with industry, joint patent filings and Industry-academia partnership orandum of understanding (MoU) ions. They are all tailored to meet spe- features can be accessed during one-on-one or group
urgent need for industry-academia industry externships. “The school will The other big focus, say experts, is the with the online learning and employ- cific industry needs and prepare stu- video calls and can be applied by selecting the effects
collaboration. provide consulting services to indus- industry-academia partnership. ability solutions provider in 2023. It dents with relevant skills at an early icon in the top right corner of the screen, which displays
What is also crucial is that educa- try,” said the representative from An MIT Sloan research in 2023 was to create an alternative format of stage,” he added. the available filters and backgrounds.
tional institutes must also gear up for Wadhwani Impact Trust. pointed out that industry has an upper higher education by integrating high- The spokesperson for the
research in AI. According to a recent IIT Madras did not respond to hand when it comes to AI research, quality formal education, skill devel- Wadhwani Impact Trust said that
report by Change Engine — an AI queries mailed by Business Standard. access to compute power and access opment and employer connectivity. since students get to work on real- Motorola rolls out ThinkPhone 25
accelerator — when it comes to paper But, the spokesperson for the to data. The report goes on to say that Ramesh Aluri Reddy, chief execu- world problems, they are prepared for
contribution in top AI conferences, Wadhwani Impact Trust added that about 70 per cent of individuals with tive officer (CEO) at TeamLease employment with industry. Lenovo-owned smartphone
India’s rank is 14th and its global share the endowment aims to create a size- a PhD in AI now get a job in the private Degree Apprenticeship, said, “Industry also realises the value of brand Motorola launched the
is a mere 1.4 per cent. Compare this to able student body and an AI research sector. This compares to 20 per cent a “Industry-academia collaborations academic AI research,” she added. ThinkPhone 25. With a design
the US and China, which dominate AI ecosystem with master's and PhD stu- few years back. aimed to bridge the skill gap by Reddy said new engineering hires similar to that of the Edge 50
research with 30.4 per cent and 22.8 dents. “The endowment will also In India, this approach is already embedding industry-specific training often require a year of training before Neo, this is the second
per cent share, respectively. enable bringing in high calibre inter- making in-roads among institutes and within UG and PG programmes. It is they can be fully utilised by com- offering from the brand under
The report also highlights that top disciplinary experts and foreign fac- corporates. For instance, while IIT also by equipping candidates with panies, delaying their integration into the ThinkPhone branding. The
institutes contributing papers to mega ulty to the school,” the spokesperson Hyderabad became the first to offer future-ready skills upon graduation, the workforce. smartphone features
AI conferences include IISC added. The other challenge is the four-year BTech in AI, its AI labs have thereby minimising the need for “By integrating apprenticeship pro- military-grade durability and
Bangalore, IIT-Bombay, IIT-Madras, availability of faculty teaching AI in been set up in partnership with additional training once they enter the grammes within degree courses, we boasts MIL-STD 810H
IIT-Delhi and IIIT-Delhi. top universities. “There is a dearth of Bengaluru-based Honeywell workforce.” aim to deliver relevant skills during the certification, as well as an
The report also recommends that faculty with AI expertise. Even among Technology Solutions (HTS). As a part of this collaboration, IIT academic phase itself. This accelerates IP68 rating for dust and
the country needs to build capacity in the top universities and top engineer- Another such industry partnership Patna offers degree programmes in their employability while reducing the water resistance.
AI basic research. ing institutes this is a serious issue,” providing AI courses is IIT Patna with artificial intelligence, information industry’s training burden,” he added.
 QUICK TAKE: DABUR’S WEAK Q2 SHOWING TO WEIGH ON STOCK “Clearly there is a lot of uncertainty.

The Smart Nevertheless the market is still very much

Investor
(Share price in ~) operating in the base-case expectation
The Dabur stock’s strong H1FY25 run-up of 17 per cent that it remains more or less
may lose steam due to underwhelming September 2024 contained and doesn’t spiral
sales figures. Unfavourable weather conditions and out in an all-out war”
NEW DELHI | muted urban demand took a toll on the FMCG major's
THURSDAY, 3 OCTOBER 2024 performance. To regain momentum, Dabur must ANNA ROSENBERG
demonstrate sustained growth, Nuvama analysts note Head of Geopolitics at Amundi
Asset Management
<

Sebi’s six-step plan may Peak XV Partners cuts $2.8 bn fund

by 16% on mkt valuation concerns
shake up F&O volumes JADEN MATHEW PAUL
Mumbai, 2 October DOWNSHIFT
nomics of its seed and venture
funds will remain unchanged,
Brokers warn of possible 30-40% decline in turnover Venture capital firm Peak XV
said the statement. Indian start-
ups raised $7.5 billion in venture
KHUSHBOO TIWARI ILLUSTRATION: BINAY SINHA Partners, formerly known as capital (VC) funding across 780
Mumbai, 2 October Sequoia India and Southeast Asia, deals between January and
has announced a 16 per cent August 2024, a 53 per cent surge

T
he Securities and Exchange reduction in its 2022 vintage fund in funding value and a 5.1 per cent
Board of India’s (Sebi’s) six-step as part of a strategic shift towards increase in deal volume, against
plan to curb retail participation investing in a “measured the same period last year, accord-
in speculative index derivatives may manner” amid elevated val- ing to data from GlobalData.
lead to a substantial drop in volumes uations in the Indian market. Globally, the country ranks
— potentially by 30-40 per cent. The $2.85 billion fund will be among the top five markets for VC
These measures aim to reduce cut by $465 million, reflecting the n Reduction a part of strategic n Firm to continue to focus activity in both deal volume and
excessive speculation in the futures firm’s adjustment to market con- shift towards more ‘measured’ on seed and venture-stage value. Between January and
and options (F&O) segment, where ditions while maintaining a investments due to elevated investments while making August 2024, India accounted for
daily turnover often exceeds ~500 tril- strong focus on long-term invest- 7.3 per cent of global VC deals and
valuations in the Indian market adjustments to its growth and
lion and retail investors end up on the ments in the region. 4.6 per cent of the total funding
n Management fees were multi-stage funds
losing side of the trade more often. “We are defined by the choic- value. “While this may be contrar-
Sebi has decided to increase the es we make. We have made vol- reduced to 2% on three growth n Peak XV’s move is aligned ian to market exuberance, this will
contract size from ~5 lakh to ~15 lakh,
raising margin requirements and MAPPING IMPACT untary changes that we believe
will serve us well in a multi-dec-
funds and four multi-stage
funds, with carried interest
with a long-term strategy
prioritising stability over
serve our founders and LPs well
in the long term,” Peak XV
mandating the upfront collection of n Sebi introduced higher n Over 93% retail traders incurred losses ade time horizon,” it stated in a lowered to 20% for these funds short-term market trends Partners said, suggesting that the
option premiums from buyers. contract size, margin, and between FY22 and FY24 statement. “In the context of a move is aligned with a strategy to
The new rules will also limit upfront collection of premium n Market experts expect BSE to be impacted richly priced public market in prioritise long-term stability over
weekly expiries to one benchmark per India, we are investing in a meas- term commitment to India and early-stage investments. short-term market trends.
from Option buyers lesser than NSE as the later has more
exchange, bring intraday monitoring ured manner in our growth fund, Southeast Asia, citing strong port- While adjustments have been Peak XV also lowered man-
of position limits, and remove the cal- n Three of the six measures products in weekly expiry while we continue to lean in on folio performance and an optimis- made to the firm’s growth and agement fees to 2 per cent on
endar spread treatment on expiry to be effective from n Zerodha anticipates 30-50% dip in revenues, seed and venture stage opportu- tic outlook for the region. Despite multi-stage funds, particularly in three of its growth and four
days. The steps are to increase the November 20 other brokers also estimate a dip nities,” it added. trimming its vintage fund, Peak terms of carried interest tied to multi-stage funds, according to
entry barrier for retail investors whose The firm underlined its long- XV Partners remains focused on profit distributions, the eco- Bloomberg News.
losses have been mounting, according
to a recent study by the watchdog. equity derivatives contracts monthly market regulator will kick in from
Analysts had estimated that the
curbs may bring down the volumes
on the National Stock Exchange (NSE)
in 2023-24, GIFT City, although grow-
ing, represents less than 1 per cent of
the NSE’s volume with around 2 mil-
November 20, while others will be
effective from February and April next
year.
Chris Wood trims exposure S&P 500,
to Indian equities by 1 point Nasdaq hit
by nearly one-third. In September, the lion contracts traded monthly. According to an earlier report by
average daily trading volume for the However, the transition will largely IIFL Securities on the NSE published
NSE’s cash market segment stood at depend on how well GIFT City can in late August, Sebi’s decisions could
~394 trillion, while that of the BSE was
around ~144 trillion.
Besides the fresh derivatives curbs,
build its liquidity and market depth
to support this shift,” added Agarwal.
As far as onshore trading is con-
dent the exchange’s revenues by 20-
25 per cent.
The global trade body Futures
ON THE WEIGHTING SCALE Malaysia 1.4 Thailand 1.4
2-week lows
futures trading volumes are also seen cerned, the impact of the new meas- Industry Association believes that
to be impacted on account of the ures on the BSE may be lower than on while the intent of Sebi’s action is jus- Indonesia 1.6 Philippines 0.5 REUTERS
increase in securities transaction tax, the NSE, given its relatively lower tified, the new measures could end up New Zealand 0.4 2 October
Singapore 3.0
which came into effect from Tuesday. dependence on index options expir- inflating the cost of trading.
Further, many expect the volumes ing through the week — which now “Liquidity providers could also Hong Kong 4.1 The benchmark S&P 500 and the Nasdaq
to shift to the Gujarat International will be limited to one. face increased margin costs, leading traded near two-week lows on Wednesday
Finance Tec-City (GIFT City) in Index derivatives trading accounts to wider bid/ask spreads and creating China as investors priced in a possible escalation
Gujarat, where GIFT Nifty contracts for a chunky portion of the revenues market distortion. These higher S Korea in geopolitical tensions in the West Asia
26.5
are traded on the NSE International for both brokers and stock exchanges. spreads will ultimately be absorbed Wood's Asia 10.0 while a survey allayed worries about a rapid
Exchange (NSEIX). Zerodha, the largest broker in by retail traders, creating unintended Pacific ex- Weight cooldown in the US labor market.
“Limiting weekly expiries to a sin- terms of profitability, has estimated a additional costs for both retail and Japan asset Australia (%) Markets were wary as Israel and the US
gle index on the NSE and BSE could decline of 30-50 per cent in revenue institutional investors,” it said in its allocation vowed to strike back after Iran attacked
encourage a shift in trading volumes owing to the changes. Stockbrokers submissions to Sebi’s consultation
15.7 INDIA Israel on Tuesday, following which the S&P
towards GIFT City, which still offers a are planning to diversify their revenue paper floated in July on derivatives Taiwan 18.6 500 and the Nasdaq logged their biggest
wider range of weekly options. From streams to offset the hit on revenues. curbs. Higher entry barriers, some one-day drops in nearly a month.
Note: 16.8 Source:
a foreign portfolio investor perspec- The NSE’s income from transac- believe, may lead to some retail par- Includes GREED & The Dow Jones Industrial Average
Vietnam fear
tive, this creates an attractive oppor- tion charges stood at ~3,623 crore in ticipants taking disproportionately gained 28.72 points, or 0.07 per cent, to
tunity for those seeking flexibility in the first quarter of 2024-25. The same higher risks. 42,175.03, the S&P 500 lost 13.30 points, or
trading strategies,” said Rohit for the BSE was ~366 crore. A majority A Sebi expert group is expected to PUNEET WADHWA GREED & fear, his weekly note to investors. 0.24 per cent, to 5,694.09 and the Nasdaq
Agarwal, chief executive officer — of this is contributed from the F&O monitor the impact of the proposed New Delhi, 2 October Earlier this week, the Israeli military said Composite lost 88 points, or 0.49 per cent,
funds business, Dovetail Capital. segment and has surged on the back changes and go back to the drawing Iran had fired missiles at Israel in a sign of a to 17,825.69.
“While the NSE remains the dom- of heightened activity. board in case more follow-up action Global head of equity strategy at Jefferies, worsening geopolitical crisis in West Asia. Eight of the 11 S&P 500 sectors were
inant player, averaging 10.8 billion Three of the key measures by the is warranted. Christopher Wood, has cut his exposure to The Israeli government reportedly warned lower, while
Indian equities by one percentage point in of severe consequences if Tehran escalated Energy stocks hit
the Asia-Pacific ex-Japan relative-return the conflict. a more than one- S&P 500
month high and Intraday
F&O volumes hit new highs in Sep portfolio, and Australia and Malaysia by half
a percentage point each in favour of China,
which has seen a hike in exposure by two
Oil on the boil
An immediate casualty of the geopolitical
were up 1.5 per
cent.
percentage points. The rally in China has developments was the crude oil prices (Brent) Oil prices
The average daily trading volume (ADTV) for
been fast-forwarded by the approach of a that surged nearly 5 per cent from around $70 climbed more
the futures and options segment climbed to a
seven-day holiday with the CSI 300 Index up a barrel on October 1 to over $74 a barrel. than 3 per cent as
new record high of ~537 trillion in September, 8.5 per cent on Monday, and 25.1 per cent in Crude oil prices (Brent) dropped from $75 traders priced in
rising 7.2 per cent on a month-on-month five trading days, he said. The next day of a barrel to $68 over the past few weeks. possible supply
basis. The ADTV for the cash segment, trading in Shanghai will be October 8. According to analysts, the main driver had disruptions from
however, fell nearly 4 per cent to ~1.3 trillion. “As a result, China’s neutral weightings in been the weaker-than-expected Chinese the oil-rich West Note: Data till 8.50 pm IST
The rise in F&O volumes came even as the the MSCI AC Asia-Pacific ex-Japan and MSCI demand data, which confirmed that the Asia. Chevron and Source: Bloomberg
markets clocked stable performance last Emerging Markets benchmarks have surged world’s largest crude importer was still mired Exxon Mobil
month. The benchmark Nifty 50 index rose by 3.4 and 3.7 percentage points, respectively in economic turmoil, filtering into the con- added more than 1 per cent each.
nearly 4 per cent, while the Nifty Midcap 100 over the past five trading days to 26.5 per cent struction, shipping, and energy markets. Defense stocks such as Lockheed Martin
and the Nifty Smallcap 100 indices ended the and 27.8 per cent. This highlights the diffi- The oil market remains at risk of a supply and RTX were flat after the broader S&P 500
Derivatives turnover reached record
AT PEAK high of ~537 trillion in September
month little changed in September. Going
ahead, however, F&O volumes could fall off
culties facing fund managers in these asset
classes in a country where key policy deci-
glut if Opec+ proceeds with plans to return
some of its sidelined production, wrote ana-
aerospace and defense index hit a record
high on Tuesday.
the cliff with a slew of regulatory headwinds. sions are, seemingly, essentially made by one lysts at Rabobank International in a recent “Sentiment is dominated by the risk of
Average daily trading volume (~ trillion)
Market regulator Sebi on Wednesday man,” Wood said. note. They expect Brent crude oil to average escalating conflict in the Middle East and
announced measures that raise entry barriers $71 in the October-December 2024 quarter there is a lack of information on how strong
Geopolitics a risk (Q4CY24), and forecast prices to average $70 the Israeli response is going to be. That's
for traders, reduce the number of weekly
A worsening geopolitical situation is the “big- in 2025, $72 in 2026, and around $75 in 2027. why the market is sort of not doing a lot,”
expiries and require upfront collection of gest near-term risk” to global equity markets, “We still await the flattening and decline said Jay Hatfield, portfolio manager at
margins. Three out of six measures will come Wood said, asserting that they have not yet of US tight oil production in 2025 alongside InfraCap. The CBOE Volatility Index, Wall
into effect from November 20, two from fully discounted it. On escalation of crises in Russian compensation cuts to inject some Street’s fear gauge, hovered near a three-
February 1 and one intraday monitoring of West Asia or between Russia and Ukraine, he price appreciation later in the year, and in week high and was last at 19.56.
position limits from April 1. In addition, Sebi said all global markets, including India, will 2026, but overall the market looks to be US private payrolls increased more than
has revised the stock selection criteria for be hit badly, which they are not yet prepared on a longer-term flat trajectory,” said Joe expected in September in further evidence
stocks that qualify for the derivatives segment. for. “The conditions on the ground in Ukraine DeLaura, global energy strategist at that labor market conditions were not dete-
The new rules— aimed at ensuring more liquid and West Asia remain as highly charged as Rabobank International. riorating. Odds of a quarter-percentage-
stocks qualify for the derivatives segment— ever. Still, a (Donald) Trump presidency will “Geopolitical issues in West Asia still sup- point rate reduction at the Fed’s November
too are expected to lead to a churn in the trigger expectations that at least one of the port upward price risk in the long-term,” wrote meeting are at 65.7 per cent, up from 42.6
Note: Notional turnover in case of options 182 stocks that are currently available for conflicts, namely Russia-Ukraine, will be DeLaura in a recent note co-authored with per cent a week ago, according to the CME
Source: Exchanges Compiled by BS Research Bureau resolved quickly,” Wood wrote recently in Florence Schmit. Group's FedWatch Tool.
F&O trading. SUNDAR SETHURAMAN

N IN BRIEF N THE COMPASS

Stock brokers to storage capacity by 2030 will ~60,700 crore. Transmission

offer UPI-based Valuation upgrades likely for PowerGrid enhance grid stability.
A new central financial
schemes for evacuating 150 Gw +
renewable energy (out of the 2030
fund blocking DEVANGSHU DATTA on the opportunity. The Ministry of Gw of Inter-State Transmission
assistance (CFA) scheme supports
the development of 15 Gw of
target of 280 Gw) are yet to be
awarded. Approved transmission
Starting February 1, Power has finalised the plan, with an Base=100 System (ISTS) capacity. hydroelectric capacity in the schemes also include those planned
200
qualified stock brokers will Power Minister Manohar Lal estimated cost of ~9.2 trillion. A network of 335 Gw is planned Northeast, at a cost of ~4,100 crore. for transferring power for green
have to either offer the Khattar recently stated that the The plan aims to address rising Power Grid Corp 180 to evacuate 280 Gw of variable Additional thermal capacity will hydrogen (GH2), green ammonia
facility of trading in the National Electricity Plan (NEP) demand for electricity and facilitate renewable energy (VRE) to the Inter meet peak demand and base load (GNH3) production, evacuation of
secondary market using the 2023-32 for central and state trans- the integration of renewable energy 160
State Transmission System (ISTS) requirements, which currently offshore wind generation and pump
UPI-based block mechanism mission systems estimates a total (RE) and green hydrogen into the by 2030, with some progress already stand at 217 Gw. There is 28.4 Gw hydro projects (PSPs).
to their clients, similar transmission capital expenditure grid. The NEP aims to meet a peak achieved. The revised guidelines for under construction, and 12.8 Gw of PGCIL will be the largest
140
to the ASBA facility, or a (capex) requirement of $110 billion demand of 458 giga Watt (Gw) by electric vehicle (EV) charging new coal-based thermal capacity beneficiary, given its large balance
three-in-one trading (~9.15 trillion) towards grid expan- 2032 and expand the transmission infrastructure aim to establish a has been awarded in the last 100 sheet, low cost of debt and strong
account facility, a move that sion. This is to support rising network to 0.648m circuit km (ckm) 120 connected and interoperable days. During FY24-32, system-wide annual free cash generation.
will empower investors. renewable penetration, green by 2032 from 0.485m ckm in 2024. network. There are plans to increase transformation capacity will grow It also benefits from being elig-
Qualified stock brokers hydrogen and pumped storage The transformation capacity is 100 the number of charging stations to by 1,091 Gw (over 8 per cent ible for direct nomination to execute
must offer one of these capacity addition along with surg- likely to rise from 1,251 gross value Sensex about 100,000 by 2030. compound annual growth rate or projects. The rising RE penetration,
two options, in addition to ing peak demand. added (GVA) to 2,342 GVA over the 80 Two new building codes — CAGR). And, the transmission strong demand growth and broader
the current mode of trading. Transmission major Power Grid period. Nine high-voltage direct Oct 3,‘23 Oct 1,’24 ECSBC and ENS — will push energy network will expand at 4 per cent electrification of energy mix are all
A three-in-one trading (PGCIL) stands to capture the bulk of current (HVDC) lines with a total conservation in commercial and CAGR (from 485,000 ckm to positives for PGCIL. The firm has
account combines a the transmission capex opportunity. capacity of 33.25 Gw will be added to residential buildings and target 648,000 ckm). Over the last 100 twice increased FY25E capex target,
savings account, a demat Full details of the plan are not the existing 33.5 Gw. Gw, focusing on 220kV networks reduction of electricity days, 51 Gw worth of transmission and guided for FY26 and FY27 capex
account, and a trading available yet, but Power Grid is The inter-regional transfer and above. consumption by 18 per cent. schemes have been approved for to be above ~25,000 crore and
account into a single strategically positioned to capitalise capacity is to rise to 168 Gw from 119 Approval has been granted for 50 An addition of 39 Gw of pumped awarding, with project costs of ~30,000 crore, respectively.
integrated solution. PTI
2 THE SMART INVESTOR
>.
NEW DELHI | THURSDAY, 3 OCTOBER 2024
l

Yellow metal set to YOUR

MONEY
Subramanyam Brahmajosyula,
chief product and marketing
officer, SBI General Insurance.
For instance, if your base
Dubey warns that having
different insurers would require
two separate claims procedures,
which would make matters

become even pricier

policy is ~10 lakh and the super complicated. When both
topup is ~90 lakh, your dedu- policies are from the same
ctible should be ~10 lakh. “If insurer, you can enjoy a cashless
your base policy is for ~5 lakh experience for the full insured

Flare-up in West Asia, US elections, further rate cuts

Buy base policy and super and the deductible for the super
topup is ~10 lakh, and you get a
amount. “Otherwise, you may
get the cashless facility for the

by Fed may keep fuelling bullish trend: Experts topup from same insurer bill of ~8 lakh, you will have to
pay ~3 lakh out of your pocket,”
says Singhal. Some customers
base policy and may have to file
for reimbursement from the
super topup,” says Singhal.
RAJESH BHAYANI
Mumbai, 2 October
Oil prices surge to simplify claims assume the deductible applies
to each hospitalisation. “It’s
calculated annually for a super
Pawar adds that some insu-
rers offer discounts for purch-
asing multiple plans from them.
more than 3%
G
old prices have surged into HIMALI PATEL manager-employee benefit topup,” says Aayush Dubey,
uncharted territory, driven practice, Anand Rathi co-founder and head of Key checks
by Iran getting directly Brent crude ($/bbl) 100 SBI General Insurance recently Insurance Brokers, informs that research, Beshak.org. Ensure the sum insured for the
involved into the escalating conflict 92.40 introduced the SBIG Health this policy also qualifies for super topup is enough to cover
75.87 90 Don’t change the insurer
between Israel and Lebanon. This Super Topup Plan. Several Section 80D tax deduction. even worst-case scenarios.
latest catalyst in geopolitical ten- 80 other general and health Purchasing the base policy and “Choosing a low sum insured
sion has fuelled a bullish sentiment,
with gold now trading at all-time
SHINING BRIGHT 70
insurers also offer them. In
case of a critical illness or a
Choose the right deductible
The deductible is the amount
super topup from the same
insurer is advisable. “It
could leave you financially
exposed,” says Pawar. The
high levels. Market analysts are International gold $/oz 60 hospitalisation where the bill is paid through the base policy or simplifies the claims process features of both policies should
now projecting one-year targets 2,900 Oct 2,’23 Oct 2,’24 exorbitant, the base policy out of pocket before the super and reduces paperwork,” says match. “If your base policy
between $2,900 and $3,200 per coverage often falls short. A topup kicks in. A higher dedu- Brahmajosyula. An additional allows any room category and
ounce, up from the current $2,650. 2,652.9 2,500 Oil prices climbed more than super topup comes in handy ctible reduces the premium. benefit, according to him, is that has a three-year waiting period
Since the beginning of 1,828.0 3 per cent on Wednesday as in such circumstances. “Ideally, the deductible should the waiting periods, exclusions, for pre-existing conditions, the
September 2024, the yellow metal 2,100 Israel and the United States be equivalent to the sum insured and other terms of both policies super topup should offer the
has gained 5.24 per cent in interna- vowed retribution over Iran’s High coverage at low cost of the base policy,” says are also likely to be aligned. same,” says Singhal.
tional markets and 4.5 per cent in 1,700 biggest ever direct attack on its A super topup offers higher Brahmajosyula also
Oct 2,’23 Oct 2,’24 regional adversary, firing more
Mumbai’s spot market. The rally
shows no signs of slowing. than 180 ballistic missiles. With
coverage at a lower premium.“If
a 45-year-old buys a health COST-EFFECTIVE COMBO recommends having similar
room rent limits under the base
“The gold train is running with- Domestic gold ~/10 gm Israel also ordering more sold- cover of ~1 crore, with a base Premiums for a 45-year-old adult living in Delhi, who buys a and the super topup policy to
out breaks,” said T Gnanasekar, co- 80,000 iers into Lebanon to battle Iran- cover of ~10 lakh and a super ~1 crore cover combining base policy with super topup avoid any deduction. The
founder and CEO of Commtrendz 75,213 backed militant group Hezb- topup of ~90 lakh, the premium Insurer Base Base STU STU SI Super topup Total exclusions in both policies
Research. “The US Federal 70,000 ollah, the conflict has rapidly for the base policy would be plan premium plan (~) premium premium should be similar. Having
Reserve’s decision to cut interest 57,488 intensified with little sign of de- ~11,000-13,000, and the super (SI ~10 lakh) (~) (~) similar features in both policies
rates has created a favourable envi- 60,000 escalation despite international top-up would cost an additional ensures a smoother experience.
Niva Aspire 13,269 Health 90 1,902 15,171
ronment for a bullish trend in gold.” 50,000 pleas. That has sent oil prices ~2,000-5,000. The total cost Bupa Gold Recharge lakh Both policies should also be
Stimulus measures from China, Oct 2,’23 Oct 2,’24 surging, with Brent futures up would at most be ~18,000. purchased from an insurer with
uncertainties surrounding the US Sources: Bloomberg, IBJA $2.26 to $75.82 a barrel. REUTERS In contrast, a base cover for Reliance Health 11,338 Health 90 4,869 16,207 a high claim settlement ratio.
presidential elections, and the ~1 crore would have a premium Gain Super lakh Finally, Dubey recommends
recent flare-up in West Asia are However, around $2,700, gold is Wayne Gordon, strategist at UBS of ~36,000,” says Siddharth Top-up checking that the hospital
boosting this rally, he pointed out. technically overbought. If Israel AG Singapore, predicted even Singhal, head-health insurance, Star Super 12,762 Surplus 1 4,543 17,305 network offered by the super
Bullion market experts believe hadn’t struck Hassan Nasrallah, higher prices over the next 6 to 12 Policybazaar. Health star Gold crore topup is broad and includes
Israel’s actions are predictably vol- we would likely have seen a months, “driven by greater invest- Anushri Pawar, senior Note: SI is sum insured; STU is super top-up Source: Policybazaar.com your preferred hospitals.
atile, and any retaliatory strike by pullback in prices,” he told ment demand alongside a drop in
it against the latest Iranian rocket Business Standard. “Now, the US real rates, a seasonal recovery
attack could further inflame the future of gold hinges on what in jewellery consumption, and
situation, accelerating gold’s
upward trajectory.
happens in West Asia.”
In India, gold has reached
ongoing central bank purchases.”
“Overall, we recommend an
How Sebi’s new asset class will benefit HNI investors but only marginally, and it
does not offer a profit-share
The surge in gold prices was first record highs despite the reduction allocation of around 5 per cent to The Securities and Exchange Board of India has approved the ‘investment strategies’ for managers.
triggered by expectations of an of import duty on the metal. The gold within a balanced USD port- creation of a new asset class to bridge the gap between mutual will distinguish it from
interest rate cut by the US Federal Indian government slashed the folio. Gold remains most preferred funds (MFs) and portfolio management services. This will offer traditional MFs. SAFEGUARDS
Reserve. Mid-September saw an gold import duty from 15 per cent in our global asset allocation,” investors more investment options. Key features: According to experts, it No leverage: It will not
aggressive half percentage point to 6 per cent in July this year, Gordon suggested. UBS has revised will provide high-networth allow for leverage.
rate cut — the sharpest in four years which resulted in easing of prices its forecasts accordingly, predicting Flexibility: It offers greater Structured approach: Its individuals with high-risk Restriction: Investments
— indicating the Fed’s growing in the domestic market. However, gold will hit $2,750 per ounce by the flexibility in portfolio structured approach will appetites to capitalise on in unlisted and unrated
focus on boosting employment and this relief was short-lived: end of 2024, $2,850 by mid-2025, construction than provide some benefits of MFs. strategies like long-short and instruments will have the same
economic growth. Standard gold in Mumbai’s Zaveri and $2,900 by September 2025. traditional MFs. Regulation: Sebi regulation inverse exchange-traded restrictions as those for MFs.
Nigam Arora, a US-based mar- Bazaar is now priced at ~75,213 per Gnanasekar remains similarly Minimum investment: At will ensuring investor funds, which can enhance Derivatives exposure:
ket analyst and author of the Arora 10 grams, the highest it’s ever been. bullish, expecting gold to ~10 lakh, more accessible to a protection and transparency. their portfolios. Capped at 25 per cent of
Report, sees gold as “overbought” Futures on the MCX have crossed reach $3,000 to $3,200 per ounce, broader range of investors. Distinction: The term Is it risky? It seems riskier, asset under management.
in the short term. “The Arora ~76,000 per 10 grams. possibly by the end of this finan-
Report has been bullish on gold. In a report released last week, cial year. Read full report here: mybs.in/2dZbvot COMPILED BY SUNAINAA CHADHA

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 .l
NEW DELHI | THURSDAY, 3 OCTOBER 2024 3
<

DEBTS RECOVERY TRIBUNAL-I, DELHI

4TH FLOOR, JEEVAN TARA BUILDING, PARLIAMENT STREET,
NEW DELHI - 110001
OA NO 650/2023
BANK OF BARODA Applicant
Vs
BHASIN ENTERPRISES Defendants
TO,
1) BHASIN ENTERPRISES BHASIN
D/W/S/O- Rita
28 2ND FLOOR BLOCK H POCKET 3 SECTOR 11, ROHINI DELHI –110085
Also, At.
GROUND FLOOR KH. NO.49/6 PRAHLADPUR BANGAR VILLAGE DELHI - 110042
Whereas the above-named applicant has instituted a case for recovery of
Rs. 28,36,319.08 (Rupees Twenty-Eight Lakh Thirty-Six Thousand Three Hundred
Nineteen and Eight Paisa Only) against you and whereas it has been shown to the
satisfaction of the Tribunal that it is not possible to serve you in ordinary way.
Therefore, this notice is given by advertisement directing you to make appearance
before Ld. Registrar on 08.10.2024 at 10:30 A.M. (for further details kindly visit
DRT website www.etribunal.gov.in phone Number: 011-23748473)
Take notice that in case of your failure to appear on the above-mentioned day before
this Tribunal, the case will be heard and decided in your absence.
Due to ongoing Pandemic Situation, all the matters will be taken up through
Video Conferencing and for that purpose: -
(i) All the Advocates/Litigants shall download the “Cisco Webex” application/
Software; (ii) “Meeting lD” and “Password” for the next date of hearing qua cases
to be taken by ‘Registrar/Recovery Officer-l/ and Recovery Officer-ll shall be available
one day prior to the next date at DRT Official Portal i.e. “https://drt.gov.in” under
the Public Notice Head. (iii) ln any exigency qua that, the Advocates/Litigants can
contact the concerned official at Ph. No, 011-23748473 Given under my hand and
seal of the Tribunal on this 07th June, 2024
By order of this Tribunal
4
>.l
NEW DELHI | THURSDAY, 3 OCTOBER 2024 1
DSPL-131 (3rd p)

Shri Narendra Modi Shri Mohan Charan Majhi

Prime Minister Chief Minister, Odisha

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INVEST IN ODISHA, INVEST IN FUTURE