FE BUREAUNewDelhi,April 22

IN A DEVELOPMENT whichwill not only help RelianceIndustries cut itsdebtbutalsoenable it to emerge as amajorplayer in the e-commerce andlarger digital space, US techmajor, Facebook onWednes-dayannouncedaninvestmentof$5.7billion (`43,574crore)to buy a 9.99% stake in JioPlatforms. Jio Platforms is100% subsidiary of RIL, cre-atedinOctoberlastyearwhichhouses all its digital ventureschief of which is Reliance JioInfocomm,whichrunsmobileservices. This is Facebook’sbiggest stake buy since its2014acquisitionofWhatsAppforabout$19billion.

Tobeginwith the two firmswill collaborate on the e-com-mercefronttodigitisethecoun-try’s over60million,small andmedium businesses, and 30millionneighbourhoodkiranastores.ThebasicideaisthatJio’se-commerce app JioMartwillget integrated with FB’s mes-sengerplatform,WhatsApp tobringon-board theneighbour-hood kirana stores on adigitalplatform. Though customerscan orderon the platformandchoosetopayviaotherpaymentapps, over time it is expectedthatwhenWhatsApppaymentsbusinessgetsoperationaliseditwill get a huge leg-up.Even JioMoneywillbeabeneficiary.

The collaboration,which isnot exclusive and both thepartners are free to forgealliances with other suitableplayers,nonethelesswill offerbig competition to current e-commerce players like Ama-zon, Flipkart, Big Basket andGrofers, etc, apart from pay-ment firms likePhonePe,etc.

WhatsAppwithits400mil-lionsubscribers,itsparentFace-book’s250millionusers in thecountry,and Jio’s 388millionusers provide a perfect start totheplatform.Thebenefitforthekirana stores is that they getdigitised without having tospendanythingandcanextendtheirreachandeffectivelycom-petewith thebigger,organisede-commerce players.However,abig challenge forthemwouldbe logistics like delivery forwhich theyneed to hireman-power as well offer serviceswhichmatches in qualitywithbigger,organisedplayers.

“Todayweareannouncinga$5.7-billion,or`43,574-crore,investment in Jio Platforms,part of Reliance Industries,making Facebook its largestminority shareholder,” thecompany said in a statement.RILinaseparatestatementsaidthe investment by Facebookvalues Jio Platforms at `4.62lakh crore pre-money enter-prisevalue ($65.95billion).

ContinuedonPage11Related reports onPage4

FACEBOOK-RJIO DEAL

TACKLING CORONAVIRUS

FE BUREAUNewDelhi,April 22

THE CABINETONWednesdayapproved an Ordinance tomake acts of violence againstdoctorsandothermedicalstaffa cognizable and non-bailableoffence,withpunishmentuptoseven years in jail, as the gov-ernment sought to assuagefearsofthehealthworkersamidincreasingreportsofattacksonthem. The attackers will alsohave to paydouble the cost ofthepropertytheydamage.

Briefing media after themeeting, information andbroadcastingministerPrakashJavadekarsaid theCabinethasapproved the Ordinance toamend the EpidemicDiseasesAct, 1897, and that attacksagainst the health workers,who are staking their lives tofight the Covid-19 pandemic,won’t be tolerated. “It (theOrdinance) carries imprison-mentfrom6monthsto7yearsif anyone is found guilty,”Javadekar said.TheOrdinancealso stipulates stiff provisions,includingfinesupto`2lakh.

ContinuedonPage11

FE BUREAUNewDelhi,April 22

THE GOVERNMENT ONWednesdayheldanothermeet-ing of theCabinet but thewaitfor amuch-anticipated reliefpackage to prevent large-scalejoblossesandrebuildtheecon-omy,devastated by the Covid-19 pandemic and a nation-widelockdown,justgotlonger.

BriefingmediaaftertheCab-inetmeeting, information andbroadcastingministerPrakash

Javadekar said the economicpackagewill be announced asandwhenit’sready.

Officialsourcesindicatethat

thenext roundof packagewillinclude components proposedbyvariouswingsof thegovern-ment andwill have an impres-

sivesize.Thedelayisbecauseofsomeaspectsofthepackagearestill being fine-tunedand theirexpenditure implications areassessed against thediminish-ingtaxandotherresourcesduetothedeepeconomicslump.

The government had lastannounced a `1.7 lakh crorereliefpackage(withextrabud-getaryoutlayof`75,000crore)forthepoorandthevulnerableonMarch26.

ContinuedonPage11

RELIEF PACKAGE 2.0

Sample testingshift: In Maha,private labsovertake govtfacilities

IN THE NEWS

‘Noconflict if statecaneprices higherthangovt-set SMP’RULINGOUTANYconflictbetween the statutoryminimumprice of sugarcanefixedby theCentre andadvisory price by the stategovernment if the latter ishigher, the SupremeCourtsaid onWednesday, reportsIndu Bhan inNewDelhi. Itrefused to refer the issue to alarger bench, a plea soughtby themills ofUttar Pradesh.

Maruti unit getsnod tooperateonsingle shift basisTHEHARYANAGOVERN-MENT onWednesday grant-ed permission toMarutiSuzuki India (MSI) to restartits Manesar-basedmanufac-turing facility, reports PTI.But MSI said itwill resumeoperations onlywhen itcanmaintain continuousproduction and sell vehicles,"which is not possible atthis point of time".

Mahamin requestsCBI to take custodyofWadhawansMAHARASHTRAHOMEMINISTERAnil Deshmukh onWednesday said the stategovernment has requestedtheCBI to take the custodyofDHFLpromotersWadha-wans, reportsPTI. DHFLpromoters KapilWadhawanandDheerajWadhawanallegedlyviolated thelockdownnorms andtravelled toMahabaleshwarearlier thismonth.

INDIAOPS

ASMITADEYNewDelhi,April 22

OYO HOTELS & HOMES hasasked all employees in India toaccepta25%reductionintheirfixed compensation forApril-July.This includes a section ofemployeeswhowill be sent onleave “with limited benefits”,effectiveMay4,andcontinuetillAugust, according to internaldocumentsreviewedbyFE.

“All other benefits andterms of your contracts willremain unchanged.Also,notethatthisactionwillbeplannedin such a way that post theproposed pay cut, the fixedcompensation for any emp-

loyee is not less than `5 lakhper annum. This ensures alargepercentageofourcollea-guesat lowerpayscales seenoimpact,” Rohit Kapoor, CEO,India and South Asia, toldemployees at a townhall .

ContinuedonPage11

FE BUREAUNewDelhi,April 22

VODAFONE PLCONWednes-daysaidithasacceleratedapay-ment of $200 million (about`1,530crore) toVodafoneIdea,due in September2020,underthetermsofthe‘contingentlia-bility mechanism’. This is notanyfreshequityinfusion inthecompanybutpartofcontingent

liability mechanism enteredbetweenVodafoneandIdeaCel-lular at the time of merger,wherein Vodafone Groupneededtopayforadjustedgross

revenueduesiftheamountpaidexceededthatofIdeaCellular.

VodafoneGroupsaidfollow-ingtheSupremeCourtdecisionon the definition of adjustedgross revenue (AGR) inOctober2019,India’stelecomoperatorsbecame liable for licence fees,penalties and interest datingbackover14years.

ContinuedonPage11

Oyo cuts salary, sendsemployees on leave

Govt takes longer to shape larger response

MARKETS, P10

FUNDRAISING

INTERNATIONAL, P8

SENSEX: 31,379.55 ▲ 742.84 NIFTY: 9,187.30 ▲ 205.85 NIKKEI 225: 19,137.95 ▼ 142.83 HANG SENG: 23,893.36 ▲ 99.81 `/$: 76.67 ▲ 0.17 `/€: 83.22 ▼ 0.04 BRENT: $19.45 ▲ $0.12 GOLD: `46,167 ▲ `842

KOLKATA, THURSDAY, APRIL 23, 2020

KotakMahindra Bankto raise `7,500 crorethrough share sale

AMERICAFIRST

Trump suspendsissuing of newgreencards for 60 days

OPINION, P6

PRANJULBHANDARI SUNIL JAIN

Apartial lockdowncould shave 4%offthemonthlyGVA

Govtmust address the

confusion over its directives

on the partial opening up

after the corona lockdowns

VOL.29 NO. 148, 12 PAGES, `6.00 (NORTH EAST STATES & ANDAMAN `10.00) PUBL I SHED FROM : AHMEDABAD, B ENGALURU , CHAND IGARH , CHENNA I , HYDERABAD, KOCH I , KOLKATA , LUCKNOW, MUMBA I , N EW DELH I , PUNE

FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM

READ TO LEAD

FB, Jiowillcollaborateaswell ascompete

`4,36,176crore($57.4 bn)

Equity value

of 100% stake

Equity value

of 9.9% stake

`43,574 cr($5.7 bn)

`41,000 cr

($5.4 bn)

Net debt on JPL

`4,77,176 cr($62.8 bn)

Enterprise value

1,240

1,280

1,320

1,360

1,400

Open Close

RILIntra-day on BSE (`), Apr 22

Prev close: 1,236.05

1,320

1,363.35

How thesynergiesworkSubscriber base (m)

WhatsApp

(India)

Facebook*

Reliance

Jio

400

250

388

*WhatsApp

parent firm

RJio could beMark’sWhatsAppmoment

FE BUREAUNewDelhi,April 22

THOUGH FACEBOOK HASpicked up a 9.9% stake in JioPlatformsandcollaboratingonthee-commercefront,thetwoplayerswill continue to com-pete inotherareas.

There are several duplica-tion which will continue toexist, executives of both thecompanies said in a concallaftertheannouncementofthedeal.“Theconstructofthiscol-laboration is notmeant to beexclusive,” Ajit Mohan, vice-presidentandmanagingdirec-torofFacebook India,said.

Thiswas echoed byAnshu-manThakur,head of strategy,Reliance Jio,who said,“At thispoint,wehave identifiedmer-chant, SME commerce assomethingwe can collaborateandwe can benefit fromwhatWhatApp already does verywell... We will similarly findareaswhere the skill setsmaybemore complementary butthisinvestmentorpartnershipdoesnotmeanthatwewillnotcompete in themarket.”

The statement assumessignificance because Jio has amessengerapp,JioChat,whichisonthelinesofWhatsAppbutwithmuch less subscribers.

ContinuedonPage11

ANURAGKOTOKYNewDelhi,April 22

THE GOVERNMENTORDER-EDairlinesthisweektostopsell-ingtickets.Hardlyanylistened.

Fourof thecountry’s topsixairlines,whichtogethercontrol80%ofthelocalmarket,aresell-ingdomesticflightticketsforassoon as the thirdweek ofMay,searches on their websitesshowed.That’sdespitetheCen-tre sayingnodecisionhasbeenmade on allowing flights aftertheendofthenationwide lock-down onMay3,whichmeansairlinesshouldrefrainfromsell-ingticketsuntilauthoritiesgivethemthegoahead.

AviationministerHardeepSingh Puri reiterated that nocommercial flights will beallowed to operate until thespread of the coronavirus hasbeen controlled and that thelifting of restrictionswill onlybeconsidered later.

MarketleaderIndiGo,oper-ated by InterGlobeAviation, issellingticketsfromJune1,asisVistara,thelocalaffiliateofSin-gaporeAirlines.

ContinuedonPage11

● CASH-STRAPPED

● CONTINGENCY MECHANISM

Pvt airlinesignore govtorder to notsell tickets

Voda Idea gets `1,530 cr fromVodafone Plc

Newordinance: Seven-year jailfor attack on healthworkers

PMModi to interactwith CMs onApr 27PRIMEMINISTERNarendraModiwill interactwith chiefministers via video confer-encing onApril 27morning,official sources said onWednesday,reportsPTI.Thiswillbethethirdvideoconfer-ence of the Prime MinisterwiththechiefministersaftertheCovidoutbreak.

Ministry officialtests positiveTHEMINISTRYof civil avia-tiononWednesdaysaidoneofits employeeswho attendedoffice onApril 15 has testedpositiveforCovid-19,,reportsPTI.All colleagues,whocameincontactwiththeemployee,have been asked to go intoself-isolationasaprecaution-arymeasure,itsaid.

Emergency responseof `15k cr for Covid

THECABINETonWednesdayokayed `15,000 crore for‘India Covid-19 EmergencyResponse andHealth SystemPreparedness Package’ forcontaining the spread of thevirusthroughdevelopmentofdedicatedtreatmentfacilitiesand setting up laboratories,amongothers,reportsPTI.

US state files suitagainst ChinaMISSOURIHAS become thefirst US State to sue China,alleging that it suppressedformation,arrestedwhistle-blowers and denied thecontagious nature of thenovel coronavirus that led tothe loss of life and caused“irreparabledamage”tocoun-triesglobally,reportsPTI.

Work resumes at theMahatmaGandhi Setu followingrelaxationof lockdowncurbs in PatnaonWednesday

Jio gets $5.7 bn to deleverage and a biggertech footprintwhile Facebook gets asavvy partner to consolidate its India play

JioMart getsWhatsApp’s 400-million-user edgeFE BUREAUNewDelhi,April 22

WHATSAPP’S 400 MILLIONsubscribers in India and itssoon-to-be-launched pay-ments app,couldgive JioMartthe lever it needs to be ableto link millions of small

merchants and kiranas withcustomers.

Theuser-friendlyandubiq-uitous WhatsApp is the besttoolthatcanhelpconnectcon-sumers with mom-and-popstores and small merchants,facilitatingdeliveriesofgoodsandservices.

As Satish Meena, senioranalyst at Forrester Research,pointed out JioMart has beenfacing issueswithgettingcus-tomers, both merchants andconsumers and can dowith aboost.“WhatsAppisapowerfultool and many small tradersarealreadypresentonthemes-

sagingplatform,”Meenasaid.ForFacebook-ownedWhat-

sapp,theuseofpaymentsappswould probably be the rev-enue-driver as the operationsof an increasing number ofkiranasbecomedigitised.

ContinuedonPage11

In the very near future JioMart andWhatsAppwillempower nearly 3 crore small India Kirana shopsto digitally transactwith every customerin their neighbourhood.—MUKESHAMBANI, RELIANCE INDUSTRIES CHAIRMAN

We are going to become the largest minorityshareholder in Jio platforms...Committing toworktogether on some critical projects that are going toopen up lot of opportunities for commerce in India.—MARK ZUCKERBERG, FACEBOOK FOUNDER & CEO

Employees totake 25% cut insalary for Apr-July

Some tobe sent onleave with'limitedbenefits'startingMay 4

RAVIK BHATTACHARYA,ATRI MITRA& SANTANUCHOWDHURYKOLKATA,APRIL22

WESTBENGALCHIEFminis-terMamataBanerjeeWednes-dayput the blame squarelyonthe Centre for dispatchingfaulty Covid-19 testing kits,and came down heavily on itforsendingtwoteamstoassessthesituationontheground.

Addressing a press confer-ence,Banerjeesaidiftherewasahealthhazard,thenthestatewasnotresponsible.“Theyareshow-inganattitudetheywouldhavebeenhappy if thereweremoreCovid-19casesinBengal.Rapid

test kits sent to the state havenowbeenwithdrawn becausetheywerefaulty.Thankfully,ourhealth department orderedsomekitswhichcameveryuse-ful. If there has been a healthhazard here, then we are notresponsibleforit.Whosefaultisit?We have to conduct timelytests. If we fail to do so, thenpatientsmaydie,”shesaid.

She said“canards arebeingspread Bengal is not conduct-ingenoughtests”.

But she held the Centreaccountable for sending only2,500 kits against 14,000soughtbythestate.

ContinuedonPage11

KAUNAIN SHERIFFMNewDelhi,April 22

DAYS AFTER THE SupremeCourtclearedthedecksforpri-vatelabstoconducttestingforCovid-19, Maharashtra hasbecome the first state wherethe number of samples testedat private facilities has over-taken those at governmentlabs — by nearly double onTuesdayalone.

With5,221casessofar,thehighest in any state, Maha-rashtrahasemergedasgroundzero of the outbreak in thecountry, and officials haveidentifiedlargescaletestingasakeytooltoisolateandcontainthespread.

On Tuesday, private labstested 4,211 samples whilegovernment facilities totalled2,255 in thestate.

Overall, according to offi-cial figures availableWednes-day morning, Maharashtrahas tested 82,304 samples sofar, of which 41794, or50.78%, have been done inprivate labs.

ContinuedonPage11

Mamata says Centre nothelpingwith testing kits

Special Feature

Private e-mandis, farm-to-fork startups andlocation tracking&geo-fencing techplatformsare helping farmers selltheir produce in thispeak harvesting seasonamidst theCovid-19lockdown■eFE, P9

Harvesting thebenefits oftech atmandi

BELATEDRESPONSE?

■ Javadekar says economicpackagewill be announcedasandwhen it’s ready

■NitiAayoghasprojectedneedfor`10-lakh-crore fiscal stimulus

■Govt’s total fiscal interventioncouldbe to about3-4%ofGDP(or `6-8 lakh crore)

Countries likeChina,Vietnam,Indonesia andMalaysiadeclared fiscalpackages up to

3%ofGDPby the firstweekofApril

20,471TOTALCASES

652DEATHSSOFAR 1,486NEWCASES

COVID-19 UPDATE

ANUPAMCHATTERJEENewDelhi, April 22

GRAPPLING WITH UNDER-RECOVERIES stemmingfromlowcrudeprices,ONGC is eye-ing potential opportunities toreduce future operationalexpensesbyhiringexplorationservice contractors at lowerrates. The company, sourcessaid, has not yet announcedany tender for such services,but is keeping a close track onthemovementofoilpricesandwaiting for the opportunemoment.

Before the pandemic, leaserates of rigs and other oil fieldservices had rebounded aftercontinuously falling sinceFY16,asglobaloilservicefirmsdepletedtheircapacityforfur-ther margin cuts. In 2017,rates for deep-water rigswere65% below 2014 levels. AsnotedrecentlybyCareRatings,ONGC had hired offshore rigsat around $30,000-$35,000inFY16—whenasharpdown-ward trend in crude oil was

witnessed—whichwere65%-70%lowerthanayearago.

However, experts pointedoutthatlowerexplorationandproduction activities in theGulfmight lead to global ser-vice contractors bid at lowerrates if currentmarket condi-tionsprevail inthenearfuture.

In FY19, ONGC paid`10,042 crore on service con-tracts of rigs,vessels and heli-copters, 11.5% lower com-paredwith FY18.The scope ofcost saving on this front willapply mostly on its offshorewells,which produce ONGC’s70%oiloutput.Foritsonshorewells,thecostofsuchfieldser-vicesarealreadyverylow.

If ONGC’s productiongrowth remains flat at 24mil-

lion tonne (MT), it is likely toface under-recoveries of $1.8billion in FY21, provided theIndianbasketofcrudeaveragesat $25/barrel in the year.Thecompany’s per-barrel produc-tioncost is intherangeof$35-$40.Even facing under-recov-eries,it is difficult forONGCtoreduce production asmost ofthe company’s existing fieldsare ageing,and capping thesewellsnowwouldmakerevivingproductionanoneroustask.

The company is also facingunder-recoveries from its gasbusiness,afterthegovernmentrecently slashed the price ofdomesticgasby26%to$2.39per million British thermalunits (mmBtu), whereas thefirm’s output cost is around$3.8-$6.6/mmBtu.

According to ONGC, thefirm issetto“adopt abalancedapproach towards capitalspending,”andhasbeencarry-ing out “detailed review ofactivities to look for opportu-nities to optimise operatingcosts topreserve liquidity”.

EconomyTHURSDAY, APRIL 23, 2020

FINANCIALEXPRESS2

SURYASARATHI RAYNewDelhi, April 22

THE FACILITY GIVEN toemployers registeredwith theEmployees’ Provident FundOrganisation (EPFO) to defertheirstatutoryprovidentfundcontributions for the wagemonth of March by a monthmay be extended for another30 days. Firms may also begivenasimilar30-dayrelieffordepositingAprilEPFfunds,theworst-affectedmonthforbusi-ness and the industry due toCovid-19.

The proposal, which haspotential to provide around`30,000-crore liquidity —`15,000-crore dues for eachwage month of March andApril — in the hands ofemployers,isunderdiscussionin theMinistry of Labour andEmployment,sources said.

However,when contacted,central provident fund com-missionerSunilBarthwalsaid,“Wewillwait tillMay3forfur-ther announcement, since fil-ingofelectronicchallan-cum-return(ECR)dateforApril isuptoMay15.”

Around 6.6 lakh establish-mentscontributedtotheEPFOin the last one year. Firmscumulatively contributed`1,47,503 crore in 2018-19towardsEPFO.Thecumulativecontributionin2019-20wentup to`1,63,176crore (revisedestimate)which is likely to goup further to `1,81,709 crore(BE) in2020-21.

Theduedatefordepositingstatutorycontributions,aggre-gating one-fourth of oneemployee’s monthly wages,towards provident fund, to bedepositedbyanemployer,fallswithin the first 15 days of thenextmonth.The contributionfor thewagemonth ofMarch,due by April 15, has beenalreadyextendedtoMay15.

Theministry’s directive ongranting the grace period toemployers for filing the ECRfor the wage month March,however, comeswith a caveat.Onlythoseentitieswhichhavepaid March wages to their

employeeswill be able to availofthebenefit.Theywillhavetodeclare the date of disburse-ment ofwages for themonthin theECRforMarch.

“The employers disburs-ing thewage forMarch 2020not only get relief of exten-sion of due date for paymentof EPF dues forMarch 2020,but also avoid liability ofinterest and penalty, if theyremit before May 15, 2020,”an official statement, issuedonApril 15,said.

Aimed at preventing dis-ruption in employment, therelaxation is an incentive toemployers forwage paymentto employees during the pan-demic.

The Employees' ProvidentFund &Miscellaneous Provi-sions Act, 1952 makes itmandatory for factories andother establishments having20ormoreemployeesearningless than `15,000 monthlywage to join theEPFscheme.

No conflict if state cane priceshigher thanminimum fixedbyCentre, rules apex court

WWW.FINANCIALEXPRESS.COM

Companiesmayget EPFrelief forApril aswell

The proposal has

potential to provide

around `30,000-crore

liquidity— `15,000-crore

dues for eachwage

month ofMarch andApril

— in the hands of

employers

The company, sources

said, is yet to announce

any tender for such

services, but is keeping a

close track of the

movement of oil prices

Stationed rightlyRailway porters stand in queuesmaintaining social distancing at the Kalupurstation inAhmedabad onWednesday to collect free ration kits from railwayofficials. Express photo by Javed Raja

INDU BHANNewDelhi, April 22

RULING OUT ANY conflictbetween the statutory mini-mumprice(SMP)ofsugarcanefixed by the Centre and theadvisorypricebythestategov-ernment if the latter is higher,a five-Judge ConstitutionBench of the Supreme CourtonWednesdayrefusedtoreferthe issue to a larger Bench, assought by sugarmills of UttarPradesh.

Since 2009-10, the SMPhasbeenreplacedwithfairandremunerative price (FRP) andsome states likeUttarPradeshcontinue to announce state-advised prices which arehigherthanFRPs.

Settling the issue, theBench led by Justice ArunMishrasaidthereisnoconflicttill the time the price fixed bythestategovernmentishigherthan the central government.“There is no conflict betweenthe twodecisions of this court– Tika Ramji and UP Coop.Cane Unions Federations –therefore,thereisnonecessitytoreferthemattertothelargerBench consisting of sevenJudges,” the SC stated whileterming the view taken byanother five-judge Bench inthe case,UPCooperative CaneUnions Federation vsWest UPSugarMillsAssociation,as the“correctview.”

Syed Shahid Husain Rizvi,who appeared for Bajaj Hin-dustan, said, “The issue hasbeen settled nowonce and forall.The sugar industry has nowaybut to accept the SC judg-ment. However, there is nofinancial liability on sugar

mills as of nowas all the dueshavebeenclearedso far.”

According to the SC, byvirtue of Entries 33 and 34 ofList III of Seventh Schedule,both the Centre aswell as thestate government have thepowertofix thepriceofsugar-cane.“Thecentralgovernmenthaving exercised the powerandfixedthe‘minimumprice,’the state government cannotfixthe‘minimumprice’ofsug-arcane.However, at the sametime, it is always open for thestate government to fix the“advisedprice”whichisalwayshigher than the “minimumprice”, in view of the relevantprovisions of the Sugarcane(Control) Order, 1966,whichhas been issued in exercise ofpowersunderSection16oftheU.P. Sugarcane (Regulation ofSupply and Purchase) Act,1953,”theConstitutionBenchsaid in itsorder.

Rejecting the stand of thesugarmills, the top court saidSection 16 of the 1953 Act,which confers power on thestate government to fix the

remunerative/advisedpriceatwhich sugarcane can bebought or sold, is not repug-nant to Section 3(2)(c) of theEssential Commodities Act1955andClause 3 of the Sug-arcane (Control) Order as“thepricewhichis fixedbythecen-tral government is the“mini-mum price” and the pricewhichisfixedbythestategov-ernment is the“advisedprice”which is always higher thanthe“minimumprice” fixed bythe Central government and,therefore,there isnoconflict.

It isonlyinacasewherethe“advised price” fixed by thestategovernmentislowerthanthe“minimumprice” fixed bythe central government, theprovisionsofthecentralenact-ments will prevail and the“minimumprice” fixed by thecentral government wouldprevail.So longas the“advisedprice” fixed by the state gov-ernment is higher than the“minimumprice” fixed by theCentralgovernment,thesamecannotbesaidtobevoidunderArticle 254 of the Constitu-tion,”theSCsaid.

Abatchofpetitionsfiledbysugar mills had sought theapex court’s clarification onwhetherthestategovernmenthas the power to fix a mini-mum price for sugarcane,when the Centre had alreadyfixed the price. Mills statedthat there cannot be twomin-imumprices, one fixed by theCentre and the other fixed bythe state government,and thepowertoregulatethedistribu-tion, sale or purchase of caneunder Section 16 of the 1953Actdoesnotincludethepowerto fixaprice.

EPFO: `3,600 crwithdrawn intwoweeks

THE EMPLOYEES PROVI-DENT Fund Organisation(EPFO) onWednesday saidit has settled 10.02 lakhEPF withdrawal requestsworth `3,601 crore in thepreviousfortnight. Amongthesettledclaims,6.06lakhamountingto`1,954crorewereCovid-19claims.

“Despite onlyone-thirdstaffbeingabletoworkduetolockdown,90%ofCovid-19claimshavebeensettledin threeworking days, set-ting new standards of ser-vice delivery,” the retire-ment fundbodysaid.

Under the PradhanMantri Garib KalyanYojana,launchedonMarch26, a provision exists forwithdrawal from one’sprovident fund accumula-tion to fight thepandemic.

Subsequently, throughan urgent notification, anew provision was intro-duced in the EPF scheme,underwhichsubscribersareallowed to avail of non-refundablewithdrawalofupto threemonths’wagesanddearnessallowance,orupto75%of the amount stand-ingtomember'screditintheEPF account, whichever isless. FEBUREAU

Rising under-recoveries: ONGCeyes lower field service rates

ImplementationofDAhikemaybe postponedFE BUREAUNewDelhi, April 22

WITH TAX REVENUES downto a trickle because of lock-down, the Centre seems tohave decided to delay theimplementation of its recentdecision of raising dearnessallowance (DA) for 1.13 croregovernment employees andpensioners.OnMarch 13, theCabinethadgiven itsapprovalto increase the DA by 4% to21%,which would have costthe exchequer an additional`14,510crore inFY21.

Changes inDAare to comeinto effect retrospectivelyfromJanuary1,2020.TheAprilsalary,which is due to be paidinaweek’stime,wassupposedto be based on revised DA,along with arrears for threemonths (January-March).

However, the financemin-istry is yet to notify thechanges in DA. In normal cir-cumstances, it would havebeen notified by now,an offi-cial said.

More Sebi steps to help firmstide over Covid-19 challengesPRESSTRUSTOF INDIANewDelhi, April 22

SEBIWILL LOOK into issuesbeing faced by corporates duetoCovid-19andconsidermorestepstohelpthemtideoverthechallengesaspartofitscontin-uingeffortstomakeiteasiertodobusiness even in suchdiffi-cult times, the regulatorybody's chairman Ajay Tyagitold representatives of theIndia InconWednesday.

Inaconferencecallwiththeapex industry body CII (Con-federationofIndianIndustry),Tyagi apprised the industryleadersofvariousstepsalreadytaken by the Securities andExchangeBoardof India (Sebi)andpromised to look intovar-ious issues raisedbythem.

Sources said CII appreci-ated a number of proactiveefforts being taken by Sebi,which, in turn, promised toconsidermorestepstohelptheindustry tide over the chal-lenges posed byCovid-19 andthenationwide lockdown.

CII president Vikram Kir-loskar, president-designateUdayKotak and director gen-

eral Chandrajit Banerjeewereamong the industrialistswhoattended the conference call,whileTyagiwasjoinedbyotherseniorofficials fromSebi.

Several issues concerningthe industry in light of thelockdown were discussed inthemeeting.

Raisingofcapitalbycorpo-rates, holding annual generalmeetings, disclosure require-ments,buybacks of securities,matters concerning mutualfundswere some of themajorissues discussed in themeet-ing, according to an officialprivyto thedevelopment.

The conference call helped

both the Sebi and the CIIunderstand the concerns, theofficial said.

Sebi has taken severalproactive measures in easingthe burden of corporates inregulatory compliance byintroducing relaxations likeextensionofdate forfilings tobe made to stock exchangeslike quarterly and annualfinancial results, corporategovernance report, share-holdingpattern,etc,for listedentities.

The regulator has alsograntedaone-timerelaxationin its primary market fund-raising norms tomake it eas-ier forcompanies to raise cap-ital amid the Covid-19pandemic.

Rights issues are nowconsidered successful if theminimum subscriptionreceivedis75%, asopposedto90%earlier.

Further,incaseoffasttrackissues,theeligibilitycriteriaofaveragemarket capitalisationof public shareholding of theissuer has been relaxed to`100 crore from 1250 croreearlier.

Sebi chairmanAjayTyagi

Wheat production set tosurpass rice for first timeFE BUREAUNewDelhi, April 22

THE COUNTRY’S WHEATproductionissettosurpasstherice output for the first timethis year, according to feed-back the Centre has receivedfromthestates.The foodmin-istry has been informed bywheat-growing states thatproduction of the rabi-growncereal may be 118.41milliontonne,11.5%higher than theestimate of the agricultureministry. Due to unseasonalrainsandhailstormsinMarch,therewere concerns over thewheat crop.

According to the secondadvance estimates for cropyear 2019-20 (July-June), therice output is seen at 117.47million tonne and wheat at106.21milliontonne.Theesti-mates,releasedbytheagricul-tureministry in February,alsopegged the food grain outputat record 291.95 milliontonne.

Backedbythebumperpro-duction,thestateshavegearedup plan to purchase 40.7mil-lion tonne of wheat this yearfor the central Pool, the foodministry said in a statement.

The procurement which hascommencedfromApril15willcontinueuntil June30inmostof the states except Bihar,where it is slated to continuetill July 15 due to late harvest.Punjab andGujarat have fixedthe procurement schedule tillMay-end.

The rabi riceprocurementhasalsobeen fixedata recordlevel of 11.29 million tonne,out of which more than halfwill be fromTelangana as thestate has decided to buy theentire 6.2 million tonne ofwinter-grown crop fromfarmers.

Limit network testingfor fixed line servicesto 180 days, says TraiPRESSTRUSTOF INDIANewDelhi, April 22

TELECOM COMPANIESPLANNING to launch fixed-line services should not beallowed to conduct networktest formore than sixmonthsand theymust not charge anyfee fromusers during the trialperiod, regulatorTrai said in arecommendation to the gov-ernmentonWednesday.

Therecommendationfromthe Telecom RegulatoryAuthorityofIndia(Trai)followsa series of references from theDepartment ofTelecom (DoT)following concerns raised bysome of the service providersover subscribers enrolment byRelianceJioformobileservicesduringthetrialphase.

Trai had earlier issued rec-ommendations for networktestingnormsbeforecommer-cial launch of services, buttheDoTinJuly2019hadaskedthe regulator for recommen-dations around wireline ser-vicesalso.

Trai has suggested thatthere should be a limit of 90

days on the test phase involv-ing users.However, if the tele-comserviceproviders(TSP)failto conclude network testingdue to valid reasons, it maymake a representation to theDoT seeking additional timegiving detailed justification,whichmay be decided by thelicence issuing authority on acase-to-casebasis.

“The requisite norms to befollowedforextensionoftime-linefornetworktestingmaybeformulatedbythe licensor.Thetotal time period for networktestingprovidedtotheTSPshallnotexceed180days,”Traisaid.

Trai has recommended norestrictiononthetime limit,ifthe network testing is con-ducted using wireline tele-phone test connections givento employees and businesspartners fortestpurposeonly.

According to the recom-mendation,atelecomoperatorshouldnot be allowed to enrolmore than5%test users of itsinstalled network capacity inserviceareasandonlyaftergiv-ing 15 days prior informationto theDoTandTrai.

❝ ❝

FERTILISER SUBSIDYPrakash Javadekar, Union minister

CCEAhas given approval for fixation ofnutrient-based subsidy rates for phosphaticandpotassic fertilisers for 2020-21. Expectedexpenditure for release of subsidy on P&Kfertiliserswill be `22,186.55 crore.

Trai consultationpaper onSUC math

TRAIONWEDNESDAYissuedadiscussionpaperonthemethodandcalculation forapplyingspectrumusagecharges(SUC) incases involvingsharingof radiowaves.Thetelecomdepartmenthadurged the regulatortogiverecommendationsonwhether incremental0.5%inSUCrate incasesof sharingof spectrumshouldbeappliedonlyonspecificband inwhichsharing is takingplace,orto theoverallweightedaverage rateofSUC,whichisderived fromall bands.

Mobile,PCasessentialgoods!THEMINISTRYOFELECTRONICSandIT(MeitY)has suggestedallowingsaleofmobilephones,laptops,desktops,storagedevicesandotherrelatedproductsbyincluding theminthe"essential goods"category,according toasource.Includingmobilephonesin theessential categorywill allowe-commercecompaniesaswell as retailstores to sell suchdevicesduring the lockdown.

AirliftingChinamedical cargoINDIAWILLAIRLIFT220tonneofessentialmedicalcargo fromChinaovernext threedays,CivilAviationMinisterHardeepSinghPuri saidonWednesday.Air India,hasliftedabout300tonnesofessentialmedical cargosofarthismonththroughtheChina-Indiaaerobridge.

FacilityextendedforexportersTHEGOVERNMENTHASextendedthealternatemechanismfacilityforexporters toclaimIGSTrefunds incasesofmismatch in invoicenumberinGSTreturnsandshippingbill filedwithcustomstillDecember31,2019.

Guidelines forcrewchangeTHEGOVERNMENTHAScomeoutwithguidelinesforchangeof crewatIndianports,amove thatwill putanendtohardships facedbystuckseafarersandpavewayforthemtoreturn to theirhomes.Underthestandardoperatingprocedure,anyseafarerwouldbeallowedsign-onat theportof embarkationonlyaftertest forCOVID-19 is foundnegative

Majorports toldtodeferrentalsNOTINGADROPinexport-import cargoduetosupplychaindisruptionsonaccountofthepandemic,thegovernmenthasasked12majorports todeferthelease rentals and licencefees-relatedcharges forApril,Mayand June.Theyhavebeenasked towaiverentals inproportion tothecargodropandnot tolevypenalties.

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PRESS TRUSTOF INDIANew Delhi, April 22

THE GOVERNMENT ONWednesday approved nutri-ent-based subsidy rates forphosphaticandpotassic (P&K)fertilisers for the current fis-cal, entailing an estimatedburden of `22,186 crore onthe central exchequer.

Total subsidy outgo is esti-mated to rise by5-7%this fis-cal year, the government said.However,thenewsubsidyratesfor individual nutrients —ni-trogen, phosphorus, potashand sulphur— in the currentfiscal are lower than their re-spective rates in2019-20.

Adecisioninthisregardwastaken at the meeting of theCabinet Committee on Eco-nomicAffairs(CCEA)headedbyPrimeMinisterNarendraModi.

“TheCCEAhas given its ap-proval for fixation of nutrient-based subsidy (NBS) rates forphosphatic and potassic(P&K) fertilisers for 2020-21.The expected expenditure forrelease of subsidyon P&K fer-tilisers during 2020-21 willbe`22,186.55crore,”informa-tion and broadcastingministerPrakashJavadekartoldreporters.

There isa5-7%increase inthe subsidyamount,he said.

The subsidy on P&K fer-tilisers is being governed bythe nutrient-based subsidy(NBS) schemewitheffect fromApril 2010.

Thesubsidyfornitrogenhasbeen fixed at `18.78 per kg,phosphorous at `14.88perkg,potashat`10.11perkgandsul-phurat`2.37perkgforthecur-rentfinancialyear,thefertiliserministrysaidinastatement.

For 2019-20, the subsidyfor nitrogen was `18.90 perkg, phosphorous `15.21 perkg, potash `11.12 per kg andsulphur`3.56perkg.

The CCEA also approvedthe inclusionofacomplex fer-tiliser namely ammoniumphosphate (NP14:28:0:0) un-der theNBS scheme.

In its revised budget esti-mates,thegovernmenthasal-located `26,368.85 crore for

nutrient-basedsubsidyforthe2019-20 fiscal.

Thegovernment ismakingavailable fertilisers, namelyureaand21gradesofP&Kfer-tilisers to farmers at sub-sidised prices through manu-facturers/importers.

In 2010, the governmenthad launched the NBS pro-gramme underwhich a fixedamountofsubsidy,decidedonanannualbasis,isprovidedoneachgradeofsubsidisedphos-phatic andpotassic (P&K) fer-tilisers, except for urea, basedon the nutrient content pre-sent in them.

The retail prices of non-urea fertilisers suchasDi-am-monium Phosphate (DAP),Muriate of Potash (MoP) andNPK are decontrolled and aredetermined by manufactur-ers,while Centre gives a fixedsubsidyeachyear.

Incaseofurea,thegovern-ment fixes the maximum re-tail price. The difference be-tweentheproductioncostandthe MRP is reimbursed tomanufacturers.

ECONOMY 3FINANCIALEXPRESS

WWW.FINANCIALEXPRESS.COM THURSDAY, APRIL 23, 2020

Cabinet okays `15,000 crforemergencyresponse,healthpreparedness

●CURBINGVIRUS SPREAD Govt fixes P&K fertiliser subsidy,pegs outgo at `22,186 cr for FY21

PRESSTRUSTOF INDIANewDelhi, April 22

THECABINETONWednesdayokayed `15,000 crore for ‘In-dia Covid-19 Emergency Re-sponseandHealthSystemPre-paredness Package’ to mountan urgent response for con-taining the spreadof thevirusinIndiathroughdevelopmentof dedicated treatment facili-tiesandsettinguplaboratoriesamongothers.

The fundwill be utilised inthreephases.

`7,774crorehasbeenpro-visioned for Covid-19 emer-gency response and the restfor medium-term support,ranging from one to fouryears to be provided undermission-mode approach.

“The key objectives of thepackage include mountingemergency response to slowandlimitcoronavirusinfectionin India throughdevelopmentofdiagnosticsandCovid-dedi-cated treatment facilities,cen-tralisedprocurementofessen-tial medical equipment anddrugs,strengthenandbuildre-silient national and statehealth systems, setting up oflaboratories and bolsteringsurveillanceactivitiesandpan-demic research,” an officialstatement stated.

Theseinterventionsandini-tiativeswouldbeimplemented

underthehealthministry.In the first phase, the

health ministrywith the sup-port of all the other line min-istries has alreadyundertakenseveral activities.

Anadditional`3,000croreunderthepackagehasbeenre-leasedtostatesandUnionTer-ritories, for strengthening ex-isting health facilities asCovid-19dedicated hospitals,dedicated Covid-19 healthcentres and dedicated carecentres for thedisease.

Detailed guidelines,proto-colsandadvisoryforquarantine,isolation,testing,treatment,dis-ease containment,decontami-nation, social distancing andsurveillance have been issued.Hotspots have been identifiedand appropriate containmentstrategies are being imple-

mented,thestatementsaid.“Diagnostic laboratories

network has been expandedand our testing capacity is in-creasingeveryday.Infact,lever-agingontheexistingmulti-dis-ease testing platforms underNational TB Elimination Pro-gramme, orders for procure-mentof13lakhsdiagnostickitshave been placed to augmentCovid-19testing,”itsaid.

“Allhealthworkers,includ-ing community health volun-teers (ASHAs) have been cov-ered under the 'PradhanMantri Garib Kalyan Package:Insurance Scheme forHealthWorkers lighting Covid-19'.Personal Protective Equip-ment (PPE), N95 masks andventilators, testing kits anddrugs for treatment are beingprocured centrally,”it stated.

Efforts on to address migrantworkers’problems: CentreFE BUREAU,New Delhi, April 22

THE LABOUR MINISTRY onWednesday said the govern-mentwasworking on provid-ingmigrantworkerswithem-ployment and relief to helpthemtideoverthecurrent sit-uation arising out of theCovid-19pandemic.

Addressing members ofthe industrychamberFicciviaa webinar, labour secretaryHeerala Samariya said thegovernment has collected thedata ofmigrantworkers fromstates aswell as districts.“Weare working towards mea-sures to give them employ-ment as well as relief,”Samariya was quoted as say-ing in a release issued by theindustrychamber.

The labour ministrystarted mapping details ofstranded migrant workersfromApril 8.Alongwith basicdetails such as name, age,gender, occupation, residen-tial address, nativedistrict/state, details of theirbank accounts and Aadhaarcards are also being collected.

Asperthecollecteddata sofar around 20 lakh migrantworkers are stranded in vari-ous relief camps organised bystate government authoritiesor by their employers or in lo-calitieswhere they are gener-ally clustered.The number ofsuch strandedworkers acrossthe countrymight go up fur-ther as the labour ministry isyet toget response fromsome

states anddistricts.The ministry of home af-

fairs (MHA)hadonApril19 is-suedadetailedstandardoper-ating procedure whileallowingsuitabledeploymentof their skills.As per Census,2001, the total number of in-ternal migrants in India was309.385million.

In his address to themem-bersofFicci,thelaboursecretaryalso said that labour reformswouldbetakenupinabigwayinthecomingmonthsand labourcodeswillbecomearealitysoon.

“Wearegoingforthe labourreforms and have already gotthereport fromourParliamen-taryStandingCommittee.Also,wearegettingreport forthe in-dustrialrelationscode,socialse-curitycode.Incomingmonths,wewill see these codeswill be-comethereality,”hesaid.

According to the data

collected so far, around

20 lakhmigrantworkers

are stranded in various

relief camps organised by

state governments or by

their employers in

localitieswhere they are

generally clustered

`

Punjab seeksfinancialpackagefromPMEXPRESS NEWS SERVICEChandigarh, April 22

INALETTER toPrimeMinisterNarendra Modi, Punjab chiefministerAmarinderSinghhassuggested a three-prongedstrategy to bail out the statesfrom the Covid-19 crisis, in-cluding a 3-month special fi-nancialpackageandextensionto the 15th Finance Commis-sion tillOctober2021 forsub-missionof its final report.

Heurged the PMto ask the15th Finance Commission toreview its interim report for2020-21 in the context of themuch lower revenue share forthestatescomparedwithwhatwas expected from the earlierprojections which assumed7%growthofGDP.

Noting that a zero growthscenario in GDP for India wasnotunlikely,he said that someanalysts were projecting evennegativegrowth.Giventhelike-lihoodofverylowgrowth,whichwas expected to cause the rev-enue shortfall to last for thewhole year, the CM requestedModitodirectthe15thFinanceCommission to defer the sub-missionofitsfullreporttoOcto-ber,2021,whentheywillbebet-ter able to make a realisticassessmentof the likelygrowthof the economy over the nextfiveyears.

“Nothing would be worsethan getting committed to afive year revenue sharing pro-jectionbasedonunrealisticallyhigh growth projections,” hewarned, suggesting that theFinance Commission couldmake another interim reportfor2021-22.

“With the states continu-ing to shoulder their commit-ted liabilities and facing newdemands on relief, health in-frastructure expenditure etc.,it is only fair and just that the15th Finance Commissionshouldberequestedtorecom-mend a special Covid-19 rev-enue grant for the year 2020-21,”Amarinder furthersaid.

Inhis letter,thechiefminis-ter sought an immediate 3-month special financial assis-tancepackagetoenablestatestohandle theadditionalhealthre-latedexpenditureandbasicreliefexpenditure,andsuggestedthatthe package should give thestates maximum flexibility todesign,implementandexecuteitinamannerthatiscustomisedtolocalproblemsandneeds.

AlthoughKEC International,which executesprojectsinelectricitytransmission&distrib-ution(T&D),railways,civil,solar,smartinfraandcables,didnotencounterissuesrelatedtopayments or renegotiation of contracts dur-ingthelockdown,thecompanyhasseendelaysin orders from its clients.VimalKejriwal,managingdirectorofKECInternational,toldVikasSrivastava in an exclusive interviewthatthatlabourshortagesmightleadtoalter-native strategies by companies to increaseproductivity through mechanisation,automation and digitalisation of projects.Editedexcerpts:

Howdoyouseetheremovalofrestrictionson projects in theT&D and constructionsectortohelpcompaniessuchasKEC?Things are slowlygetting back into actionaftertherestrictionswereremovedonApril20.Webelieve itwill take at least anotherfour-fivedaystogetbacktonormalsincewerequiretheincidentalsuppliersfortheworktocontinueinfullswing.

Ourprojects require cement,steel andothermaterialsforwhichweneedtolineupthelogisticsaswell.Wenormallyhavestockswhicharegoodenoughforaweek,butifthesupplychaindoesnot get cleared thenonestartstofeelthestock-outs.Thesamethingscanhappeninfactoriesaswell,iftheydonotallowthevendorstoopentheirshops.How-ever,projectsareslowlygettingintoshape.

Since you are present in various seg-ments like T&D,railway electrification,cabling and civil work for industries,which projects according toyou are get-tingintoshape?T&Dprojectshavestartedatvariousplaces.Railwayelectrificationworkhasalsostartedin Maharashtra between yesterday andtoday.Civilprojectslikeconstructionofcem-ent factoriesandotherindustrialshavegotapprovals.Wearedoingfourmetroprojects;theoneinKochihasgotapprovalforstartingtheconstructionactivitybut threeprojectsinDelhiarestuckduetolockdown.InMaha-rashtrawehavegotapprovalforrailwayelec-trificationnow.Butunfortunately,wecouldnotworkduring the lockdownonelectrifi-cation,whichwehadrequested.

WhathasbeentheimpactoncompletionofprojectsinFY20duetolockdown?Therewasnotmuchimpactonprojectcom-pletionduetolockdowninFY20,sinceonlysixdays’workwaslost.However,goingaheadwewillrequireanextraefforttomakeupforthelosttimeofover45days.Wewill takeatleast twoweeks to rampup.So someof thelost time canbe recovered,but if the lock-downpersistbeyondthemonthofMaythentherecoverycouldbedifficult.Therecoveryfor us will depend on two things — howmuchof logistics and rawmaterial is avail-ableforramp-up,andhowmanymigratory

workerswecanretain.

Howmanyworkersdoyouhaveatpresentandwillithelptorampupyourprojects?Wehadaround30,000workersspreadover150 project sites before the lockdown.Atpresentwe are left with 20,000workers,while 30%have left for theirhometowns.These workers are staying at makeshiftquartersattheprojectsites,wheretheirfood,shelterandmedicalrequirementsaretakencareof.Sowehavetheadvantageofstartingtheprojects and rampingupquickly,if theworkerscontinuetoremainwithus.

Howdoyou see the increase in transportcosttoimpactyouroveralloperations?Overall the cost curvehas gonedown ifwelook at the cost ofmaterials, such as alu-minium,copper,steeloroil.Thisdropincostwillhelpustooffsetwhateverlittleincrease

in costwehave seen in transport orother-wise,unlessthereisaprolongedshutdown.

DoyouseeamajorchunkofyourrevenuecomingfrominternationaloperationsinQ1FY21 since most ofyourfactories andprojectswereopenabroad?Weexpect the international revenues togoup inQ1FY21 to at least 50% from45%earlier as most of our projects are opera-tional inmore than 35 countries thatweoperatein.Butthewaydomesticoperationsare comingup,the impactwill onlybe foronemonth,thatisApril.

Whatisyouroutlookonoverall improve-ment in coming quarters? Have youencountered payment related issues ororderdelaysfromyourclients?Wehaveanorderbookof`20,000croreasofMarch 31,while `3,000 crore is as L1.Soforusitisaquestionofrevenuedefermentratherthanrevenue loss.The revenuewillcomeifnotinthisquarterthennextquar-ter. By God’s grace we haven’t had anyissues related to payments or renegotia-tionofcontracts.Butwehaveseendelayinorders from our clients.Going aheadweforesee a dramatic change in our projectexecutionsasa lotof shift is seen intermsofmechanisations,automation and digi-talisationofprojectsduetosocialdistanc-ingand labourshortages.

Canyouexplainindetailaboutchangeinprojectexecution?Withgovernmentmandatingonly25%to50% employee attendance due to socialdistancing, companies will have to findalternativewaysofincreasingproductivity.Onewayof doing itwill be tomechanise,automateanddigitalisetheprojects.Itmaytake at least five-sixmonths to automatethe factories,since itwill require redesign-ing the factories or relocating them,butmechanisation,such as getting an excava-torora loadercanbedoneimmediately.

Digitalisationwillhavetobedoneatdif-ferentlevelstoovercometheissuesofsocialdistancing.However it should be under-stood that the intent is tomaintain socialdistancingandnotreducelabourcount.

What according to you has been thebiggest shift in the waycompanies havebeenoperatingsincethe lockdown?According tome a bigger paradigm shiftdue to lockdown has been the ability ofemployeestoworkfromhome,whichuntilnow was unimaginable. We believe 15-20%ofourofficeworkforcecanbeshiftedbacktohome.Although itmaynotbepos-sible for people deployed at project siteswhere physical presence is must. But ifmechanisation is introduced at projectsites,thenthesepeoplecanbere-deployedtootherprojects.

CompaniesFINANCIALEXPRESS4 WWW.FINANCIALEXPRESS.COM

THURSDAY, APRIL 23, 2020

❝❝ ❝❝

COVIDEFFECTRakesh Biyani, MD, Future Retail

Operating costswill go up 30-35%easily (after following the newstandard operating protocol) for small stores, larger storeswill seecosts going up 10-15%... Around 20-30%ofbusiness is now indeliveries,which is 10 timeswhatwas happening earlier. However,overall revenues have fallen 30-35%

MALINI BHUPTAMumbai, April 22

THE PROPOSED INVESTMENT by Face-bookof`43,574croreintoJioPlatformsval-ues it at $66billion at an enterprisevaluebeforethedeal.Withapre-listingvaluationofnearly`5 lakhcrore,themarketbelievesthisissettingabenchmarkforapossiblelist-ingof Jio Platforms in the future.Interest-ingly,thevaluation of this business goingforwardwill be like thatofaplatformbusi-nessandnotapureplaytelecombusiness.

With this investment, Jiowill be in theleague of Corporate India’smostvaluablecompanies.CurrentlyRIL,TCS,HDFCBankandHindustanUnileverare theonlyothercompanies thathave amarket capofmorethan`5lakhcrore.WithRIL’scurrentmar-ketcapof`7.84lakhcrore,it isevidentthatits nascent digital consumer business isalreadymorevaluable than itsotherlegacybusinesses.

BhartiAirtel’smarketcapiscurrentlyat`2.73 lakh crorewhileVodafone Idea is at`10,632 crore.UBS says,“Thevaluationoftheproposeddeal is in linewith ourprevi-ousunderstandingthattheplatformstrat-egywouldoptimizeplatformentitycapital

structurewithafairvalueof$60-70billion.”Inaspanoflessthanfouryears,Jiohasbeco-me the largest operator in India bymarketshare,withnearly400millionsubscribers.

Themarket isviewing this positivelyasthedeal’svaluationsimplythatthesector’soperating income is tipped to increase.Accordingto Jefferies,thevaluations implydoubling of Jio’s earnings before interest,taxes, depreciation and amortisation(Ebitda).Jefferies,whichhasdonethemath,saysthatthecompanyhas`41,000croreofnet debt on Jio Platform’s balance sheet,implying an enterprisevalue of `477,200crore ($63billion).“This is 21x its 3QFY20annualised EBITDA of `223 billion, andassuming10-12xEV/EBITDAmultiple,thevaluation implies a forward EBITDA of

`398-477bn. Hence, valuations suggestthatFacebookexpects Jio’sEBITDAtodou-blefromcurrentlevels.”

Differentbrokerageshavearrivedatdif-ferentmodelstoassesstheenterprisevalueofJio.Thecurrentdealisanywherebetween14-17%higherthanthemarket’svaluation.MorganStanleysaidthatthe9.9%stakeinJio Platformswas14%above its base caseenterprisevaluation,butnearertotheman-agement’sguidanceof$66billion.Fromitslaunch in2016,the latest telecomentrantinto Indiahashit avaluationof close to`5lakhcrore,puttingitatthetopofthecorpo-ratesweepstakesinIndia.

Credit Suisse isof theviewthat thedealwillaidJio inachievingnetdebt-freestatusby March 2021. In October last year,RelianceIndustrieshadrestructureditsdig-ital business into one consolidatedwhollyownedsubsidiarycalledJioPlatforms,whichwouldhostthemobile,broadbandbusiness,apps,technologycapabilities(artificialintel-ligence,big data,IoTetc) andother invest-mentslikeDenHathwayetc.Whilethisdealshowsthatglobalplayershavetheappetitetoinvestin India’stelecomsector,valuationsalsoshowthat Jio’sEbitdawilldouble fromcurrentlevels.

Afterdeal, Jio’s valuationhigherthanRIL’s legacybiz

FE BUREAUNewDelhi, April 22

TELECOMOPERATORS LIKEBhartiAirtelandVodafoneIdeawouldnotbegreatlywor-riedbytheFacebook-Jiodealwithregardtoanyspecial pricing thatmayaccrue to thesubscribersofJiothatmayputthematadis-advantage. The biggest worry in a dealbetween a telecomoperator and an over-the-top(OTT)playerispreferentialaccessofcertainservicesandcontenttoitsownsub-scribersataconcessionalrate.However,thisis not possible under the differential datapricing regulation of theTelecomRegula-toryAuthorityofIndia.

Even e-commerce players likeAmazonand Flipkart need notworry that Jiomayprovidefreedataforaccessingitsplatform.Under thedifferential datapricing regula-tions, operators cannot price data or anyotherservicesdifferentlyfortheirowncus-tomersvis-a-viscustomersofotherplayersif the app is on the internet. Since the JioMart-WhatsAppplatformwill be availableon the internet andcanbedownloadedviaplaystore,Jio cannotprovideanybenefit toitsownsetofsubscribersintermsofcharges.

However,othertelcosmayface theheatinthelongtermbythenatureofpartnershipwhichovertimemayseetheirhigh-endsub-

scribersmovingon to Jio’s network just bythebrandpullofWhatsApp.

“Up to now,Bharti andVodafone Ideahavebeenable topromote their‘openness’as key differentiators versus Jio’s moreclosedapproachtodigitalservices.However,withWhatsApp firmly entrenched as thedominantOTTmessagingplatforminIndia,Jiowill nowhave a channel forpromotingtheirotherdigitalservicesdirectlytothecus-tomersoftheircompetitors.Moreover,overtime it’s alsopossible to expect Jio to try tousetheWhatsApprelationshiptotrytocon-vert Bharti andVodafone Idea customertouse theirnetwork.Wesee this asanegativedevelopmentforbothBhartiandVodafoneIdea,”brokerageBernsteinsaidinanote.

Jiowon’t be able to offerdiscounted services

SHRITAMABOSEMumbai, April 22

WITH FACEBOOK’S PROPOSED invest-mentinRelianceJio,WhatsAppPayis likelytofinallyrealiseitsfullpotentialandturnupateveryothermerchantoutlet inthecoun-try.Industryexecutives say Jio has alreadybeen acquiringmerchants fordigital pay-mentsforclosetoayearnowandthetie-upwithWhatsAppwillmakeitoneofthestron-gestplayersinthemarket.Paymentplayerssaythepartnershipbetween the two com-panies bodeswell for themarket and thereisenoughroomfornewplayerstocomein.

PaytmPaymentsBankmanagingdirec-torandCEOSatishKumarGuptatoldFE,“It(thepartnership) is quitewelcome.There isscopeforeverybody.Digitalpaymentsareso

meagreatpresentthatifthemarketgrows,everybodywill benefit from it.”WhatsApphasabout400millionusersinIndiaandfea-turesprominentlyinthedailylivesofmostofthemandJio’ssubscriberbaseat390mil-lion is still growing.Thisexistinguserbase,coupledwiththe60million-oddmerchantnetworkonJioMart,couldmakeJioasignif-icantplayerinthepaymentsmarket.

Thisalsomeansthegoingforincumbentplayersinthepaymentssystemjustgotthatmuch tougher.PramodSaxena,chairmanandMD,Oxigen,saidwhilethepartnershipwillhelpexpandthemarketbybringinginalargeplayer,itwillalsothrowachallengetoexisting e-commerce firms.“WhatsApp’suserbaseisagreatleverageforJioandgiventheirmuscle,theyshoulddefinitelymakeabig impact and that energises themarket.

It’sgoingtobeachallengingtimeforotherdeep-pocketedpayment service providerswhohave been spending a lot ofmoneytoreachthecustomerandbuildabase.”

Experts said the Facebook-Jio partner-shiphelps Jio accelerate its target of build-ing a sizeable presence acrossmom-and-pop outlets across India. Naveen Surya,chairman,FintechConvergenceCouncilandchairman emeritus,Payments Council ofIndia,said,“Oneofthelargestcostsisthatofacquiringthecustomerandgettingthemtoinstallyourapponthephoneandthatcouldrange anywhere between $50-100.Withthis partnership,youalreadyhave the cus-tomer and that’s a big win.” Surya addedthereisstillmuchopportunityforpaymentplayers to build themarket and the pie islargeenoughfordifferentplayerstothrive.

Payment firms saymarket large enough for all

FE BUREAUNewDelhi, April 22

INAMAJORdevelopmentintheIndiantechand FDI space, RIL chairman MukeshAmbani and Facebook founder MarkZuckerbergonWednesday joinedhands tocreateaplatformtonotjustconnect30mil-lion kirana stores across the countrywithmorethan400millionWhatsAppusers,butalso offer a host of services targeting stu-dents, farmers, healthcare providers andMSMEs.

Commenting on the deal,Ambani saidthecombinedpowerofJio’sworld-classdig-ital connectivityplatformandFacebook’sintimate relationshipwith the Indianpeo-plewillofferinnovativenewsolutions.

“IntheverynearfutureJioMart,Jio’sdig-italnewcommerceplatformandWhatsAppwill empowernearly3 crore small IndianKiranashopstodigitallytransactwitheverycustomer in their neighbourhood. Thismeans all of you can order and get fasterdeliveryof day-to-day items fromnearbylocal shops.At thesametimesmallKiranas

can growtheir businesses and create newemployment opportunities using digitaltechnologies”.Ambani hinted that in thedaystocomethisservicewillbeextendedtoother stakeholders like farmers, small &medium enterprises, students, teachers,healthcareproviders,womenandyouth.

“AllofusatReliancearethereforehum-bled by the opportunity towelcomeFace-book as our long-termpartner in continu-ing to grow and transform the digitalecosystemofIndiaforthebenefitofallIndi-ans.In thepost-Coronaera,I amconfidentofIndia’seconomicrecoveryandresurgencein theshortestperiodof time.Thepartner-shipwill surelymakean important contri-

butiontothistransformation,”headded.Zuckerbergsaidhiscompanyismakinga

“major financial investment” and willbecomethelargestminorityshareholderinJio Platforms.“Butmore than that,we arealso committing towork togetheronsomecritical projects thatwe think are going toopenup lotofopportunities forcommercein India,”the FacebookCEOsaid.He addedIndiaisinthemiddleofamajordigitaltrans-formation and firms like Jio have played acrucial role inbringing388millionpeopleon the internet.“This is really importantrightnowas small business are the core ofeverycountry’seconomyandtheyneedoutsupport. India has more than 60millionsmallbusinessesandmillionsofpeoplerelyonthemforjobs.Nowwithalotofcommu-nities around theworld in lockdown it ismoreimportantthaneverthatpeoplehavetools to connectwith eachotherand theirbusinessescanfindways tooperateonline.Thisissomethingthatwethinkwecanhelpwith and that’swhywe’re partneringwithJiotohelppeopleandbusinessesinIndiacr-eatenewopportunities,”Zuckerbergnoted.

Services frome-shopping to e-education to be offeredDeal in local currency awin-win for Jio,FacebookMALINI BHUPTAMumbai, April 22

ALARGE DEAL closure in themidst of apandemic is anythingbuteasy,butwhenthe size of the opportunity is as big as130 crore consumers, taking the leap offaith isn’t that hard.And that’s exactlywhat Facebookdidwhile investing in JioPlatforms,which has acquired 390mil-lion subscribers in less than fouryears.

While the deal did get impacted dueto the pandemic, it did not impactvaluations negatively. The deal hasbeen concluded in the local currency(the rupee) rather than in dollar terms,since the rupee has depreciated signifi-cantly against the dollar in the lastfew months, said sources close to thedeal told FE, which was “a win-win” forboth sides.

RILmight have sought a higher dol-lar valuation under normal circum-stances,butwith the rupeedepreciatingitwaseasierto close thedeal in local cur-rency.The deal value has been arrived atusing an average of the long-termexchange rate.

Even though the deal was in theworks formore than a year, it finally gotlocked in the last fewweeks once MarkZuckerbergwasconvincedthat therewasenough juice left in the Indian marketfor a long-term investor.

Facebook was looking for convictionaround two things from their exclusivefinancial adviser Bank ofAmerica. First,if India’s telecom/digital services mar-ket had long-term potential and, sec-ondly, if Jio was the right partner. Thebrief to Bank of America was not toassess Jio’s financials in thecurrent fiscalyear or the next, but to assess thepromise the India market held for thelong term.

In a post-Covid world, Jio looks even

more enticing than before with theusage of data services only rising. Face-book was convinced given the demandfordigital services in Indiawasnot likelyto abate.

And partnering with the country’slargest telecom service provider by rev-enue and subscribermarket sharewas aclincher for the deal. It was critical forFacebook to get comfort around theindustry and the value of the deal, saidsources close to the deal.

The financial advisers to Facebookranall kindsof scenarios in apost-Covidworld for the telecom sector, followingwhichFacebookagreedto thevaluations.While there are plans to list Jio at somepoint, for Facebook this is not a privateequitykindof adeal buta strategicpart-nership.

Both sides expect the deal to close inabout twomonthsas theonlyregulatoryapprovalneededwill be thatof theCom-petition Commission of India (CCI).

Given theexperienceof someforeigninvestors in Indiahasbeena littlemixed,advisersonbothsides felt thatFacebookwouldhavesomehesitationtowade intoasector like telecom,but sources close tothe deal told FE that Facebookwas look-ingat India’spotential froma long-termperspectiveandthat the investmentwasstrategic in nature.

India is an important market forFacebook with 260 million Indians onthe social networking site and 400mil-lionWhatsapp users.

● INTERVIEW:VIMALKEJRIWAL, MD, KEC International

‘Project executions to seemajorproductivity shiftwith automation’

INVESTMENTBY FACEBOOK

The deal has been concluded in the

local currency, the rupee, rather

than in dollar terms since the rupee

has depreciated significantly

against the dollar in the last

fewmonths

SAIL borrowingscross `52,000 croreamid lockdownTHESLOWDOWNinofftakeofproductshasput‘great strain’onSAILas thesteelmaker’s cashcollectionshave fallen to record lowsandborrowingshavecrossed the levelof`52,000croreamid increasinginventorylevels,a companyofficialhas said.AmitSen,directorfinance,SteelAuthorityof India (SAIL),hasalso raisedconcernedthat theborrowingscould furthergoupandhas soughtmanagement’scooperation to saveSAILfromgetting“paralysedbylackof liquidity”.

HCrestraintonLifebuoyadsdisparagingDettolTHEDELHIHighCourtonWednesdayrestrainedHindustanLeverfromairing itsLifebuoysoapadswhichallegedlydisparagedReckittBenckiser’sDettol antisepticliquid.JusticeRajivSahaiEndlawgranted the interimrelief toReckitt,saying that theadvertisements inquestionhada“hintofmalice”in themanneritdissuadespeople fromusingantiseptic liquid.Thecourt saidtheads inquestionwereprimafaciedisparagingand ifno interimreliefwasgranted,irreparable lossandinjurywouldbecaused toReckitt.

IHCLboardapprovesraisingupto`750crore

INDIANHOTELSCompany (IHCL),whichruns theTajgroupofhotels,saidonWednesdayitsboardhadapprovedraisingof long-termfundsnotexceeding`750crorebywayofexternal commercial borrowings,foreigncurrencyborrowings,non-convertibledebentures,termloansorthroughanyotherdebt instrument inoneormore tranches,according toafilingwith theexchanges.

KirloskarElectricresumesopsatHubliunit

KIRLOSKARELECTRICsaidonWednesdaythat thecompanyhasresumedoperationsat itsHublimanufacturingunit afterobtainingnecessarypermissionsandapprovalsfromthecompetentauthorities.Thecompanyisalsoensuringduecompliancewithvariousguidelinesasapplicable,issuedbytheauthorities fromtimeto time,it saidinanexchange filing.

SRLDiagnosticsdeploysCovid-testingvaninMumbaiSRLDIAGNOSTICShasdeployedamobilevan fortestingCovid-19patients inMumbai.As thespreadofthehighlycontagiousnovelcoronaviruscontinuesunabated,thefirmhasdeployed thevanto testpeople living in thecity’shotspots.Thecompanyhas receivedapprovalfromMunicipalCorporationofGreaterMumbai forthesame.

SundramFastenersdonates`3crore toTN

SUNDRAMFASTENERShascontributed`3croretotheTamilNaduChiefMinister’sPublicReliefFundtosupportthenation’sfightagainsttheCovid-19pandemic.SundramFastenerscontinuesitsmulti-dimensionaleffortsbyimplementingpreventivemeasurespriortolockdownandprovidingguidelinestoemployeesduringthelockdownperiodtofightagainsttheunprecedentedchallenges,saidapressreleaseonWednesday.

MGMotorprovides100Hectorunits forrelief

MGMOTORINDIA isproviding100Hectorcars todoctors,medical staff,policeand localgovernmentofficialsforcommunityserviceacross thecountry,till theendofMay2020.MGMotorUKhasalsocommitted toproviding100MGZSEVs to theNHSagencies throughout theUKto fightthepandemic. All thecarswouldbeprovidedwith fuel anddriversandwill beused toensure that thekeystakeholders in this crisis cantravel safely.

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COMPANIES 5FINANCIALEXPRESS

WWW.FINANCIALEXPRESS.COM THURSDAY, APRIL 23, 2020

PGIM India Asset Management Private Limited(Erstwhile DHFL Pramerica Asset Managers Private Limited)

2nd Floor, Nirlon House, Dr. A.B. Road, Worli, Mumbai - 400 030.

Tel.: +91 22 6159 3000. Fax: +91 22 6159 3100

CIN: U74900MH2008FTC187029 Toll Free No.: 1800 266 7446

Website: www.pgimindiamf.com

NOTICE CUM ADDENDUM (No. 05 of 2020-21)

NOTICE CUM ADDENDUM TO THE SCHEME INFORMATION DOCUMENTS (“SIDs”) AND KEY INFORMATION

MEMORANDUMS (“KIMs”) OF SCHEMES OF PGIM INDIA MUTUAL FUND (“THE MUTUAL FUND”)

A. Change in the exit load structure of PGIM India Dynamic Bond Fund:

The exit load of PGIM India Dynamic Bond Fund (“the Scheme”) shall stand revised with effect fromApril 23, 2020 as follows:

Existing Exit Load Structure Revised Exit Load Structure

● If the units are redeemed on or before 30 days of allotment - 1%Nil

● If the units are redeemed after 30 days - Nil

The aforesaid changes in load structure shall be applicable for all prospective investments in the Scheme effective from

April 23, 2020.

The Trustee / AMC reserves the right to change / modify the provisions mentioned above at a later date.

B. Introduction of SIP Pause Facility:

PGIM India Asset Management Private Limited has decided to introduce Systematic Investment Plan (‘SIP’) Pause Facility

(‘Facility’) for investors who wish to temporarily pause their SIP in the schemes of the Mutual Fund w.e.f. April 24, 2020.

The terms and conditions of the Facility are as follows:

1) The Facility will be available for a maximum of 3 months.

2) This Facility is available only for SIPs with Monthly and Quarterly frequencies.

3) Themaximum number of instalments that can be paused using this Facility are 3 (three) consecutive instalments for SIPs

registered with Monthly frequency and 1 (one) for SIPs registered with Quarterly frequency. Thereafter, automatically

the balance SIP instalments (as originally registered) will resume.

4) This Facility can be availed only once during the tenure of the SIP.

5) This Facility is applicable only for AMC initiated debit instructions i.e. ECS/NACH/ Direct Debit. SIPs registered through

Stock Exchange Platforms, Mutual Fund Utility (‘MFU’), other online platforms will not be eligible to avail this Facility.

6) The SIP pause request should be submitted at least 15 days prior to the next SIP date.

7) This Facility will also be available for Top-up SIPs and SIPs registered under DynamicAdvantageAssetAllocation Facility

and Agelinked Investment Asset Allocation Facility.

8) The SIP pause request can be submitted via a physical application or via email sent across from the registered email

id of the investor to the email id transact@pgimindia.co.in

9) The Facility once registered cannot be cancelled.

The AMC/Trustee reserves the right to change/modify the terms and conditions or withdraw the Facility at a later date. The

AMC/Trustee may at its sole discretion suspend the Facility in whole or in part at any time without prior notice.

This Notice-cum-Addendum forms an integral part of SID(s) and KIM(s) of the Schemes of theMutual Fund, as amended from

time to time. All the other terms and conditions of SIDs and KIMs of the Schemes of the Mutual Fund except as specifically

modified herein above remain unchanged.For PGIM India Asset Management Private Limited

(Investment Manager for PGIM India Mutual Fund)

Place : Mumbai Sd/-

Date : April 22, 2020 Authorized Signatory

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS,

READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

SURYASARATHI RAYNewDelhi,April 22

STATE-RUNNBCChasmovedthe National Company LawAppellate Tribunal (NCLAT)challenging theMarch3orderof the National CompanyLawTribunal (NCLT) that approvedits resolution plan for debt-ladenJaypeeInfratech(JIL).

HearingtheNBCC’s‘urgent’plea on Wednesday, the two-memberNCLATbench,headedbyitsactingchairpersonjusticeBansiLalBhat,directed,“Mean-while, till further orders, theapproved‘resolutionplan’maybeimplementedsubjecttoout-comeofthisAppeal.”NCLAThasscheduledthematterforfurtherhearingonMay15.

NBCC’s resolution planincludes handing over close to21,800homebuyerstheirunitsinphases overaperiodof threeand ahalfyears andpayingofffinancial creditors their entireadmittedclaimof`9,783crore.

In its appeal to the NCLAT,NBCCalleged that the tribunal,initsorder,madeunilateralandarbitrary modifications of itsresolution plan by allowing

objections raisedbydissentingcreditor ICICI Bank and theYamunaExpresswayIndustrialDevelopment Authority(YEIDA) even as the plan wasapproved by a majority of97.36%vote intheCommitteeofCreditors(CoC).

In its appeal to theNCLAT,NBCC said the modificationsmadeintheapprovedplanwereinconsistentwiththeprovisionof the Insolvency and Bank-ruptcyCode(IBC).

CoC had approved NBCC’s

bidonDecember9,2019.In itsorder,NCLThadasked

NBCC topayICICIBank its duein cash in 12 equal monthlyinstalmentswithin18months,starting fromsixmonths fromthe approval of the resolutionplan.NBCCsaidsuchadirectionwas“arbitrary”and on unrea-sonable grounds that dissent-ingfinancial creditorsareenti-tled to payment in cash undertheprovisionsofthecode.

“TheNCLThasdealtwiththetwo issues raised by YEIDAagainst the resolution plan byamending the resolution planto provide that anyadditionalcompensationwill have to bepaid by the SPVs, and, withrespect to the additional com-pensation in relation to Expre-ssway, parties can approachappropriate forum of lawregarding the same,”the state-runfirmsaidinitsapplication.

TheNCLTalso allowed JIL’sfixeddepositholders,whohavenotfiledtheirclaimswithinthestatutorytimelines,tocontinuetheirclaimsevenafterapprovaloftheresolutionplan.

This also did not go downwell theNBCC.

NBCCmovesNCLATagainstNCLTorder

● JAYPEE INFRA INSOLVENCY

In its appeal to the NCLAT,

NBCC alleged that NCLT,

in its order, made

unilateral and arbitrary

modifications in its

resolution plan by

allowing objections raised

by ICICI Bank, YEIDA

TATASTEEL'SSALESvolumeinIndia declined a sharp 15%year-on-year (yoy) to 4.03mil-lion tonne as the lockdown ledto logistic issues and lowerdemand, induced by the shut-downofcustomeroperationsinautomotive,construction andothersegmentsinMarch.

However, production vol-umegrew6%yoyto4.74mil-lion tonne.Tata Steel India alsoachieved8%y-o-yproductiongrowthforfullyearFY20,alongwiththebest-everannualsales.ThiswassupportedbyrampupofTataSteelBSLandacquisitionofUshaMartinSteelbusinessbyTata Steel Long Products.TataSteelBSLalso recorded itsbest-ever annual performance.Thenumbers areprovisional as thecompany is yet to declare itsfourthquarterandannualearn-ingsnumbers.

Tata Steel India witnessedhighest-ever annual sales inbranded products and in theretail segmentwithanincreaseof8%overFY19.Thecompanywas successful inmaintainingvolumesforindustrialproductsand projects segment with astrong increase in sale in oil &gasandthe industrialpipeseg-ment. —FEBUREAU

Covid-19impact: TataSteel sales fall15% to 4MT URVASHIVALECHA

Mumbai, April 22

IT’S THAT TIME of the yearwhenIndiansbuygold,butthisAkshayaTritiyaconsumerswillfind ithardtostepoutandbuythe precious metal thanks tothelockdown.Evenif jewellerysales are going to be tough,financial intermediaries arepromoting other options suchas digital gold, sovereign goldbonds and gold exchangetraded funds (ETFs) toinvestors,asgoldhasdeliveredstellar returns of 16.7% so farthis year. It was the best per-formingassetclassforcalendaryear2019,deliveringreturnsof24%.

Against this backdrop,intermediaries such as ICICISecurities,HDFCSecuritiesandMotilal Oswal are finding dif-ferent ways to promote gold.The brokerages are recom-

mending options such as ‘digigold’, ‘sovereign gold bonds’and‘goldETFs’to investors.Forinstance, Tapan Patel, senioranalyst (commodities),HDFCSecurities, said the brokeragehasbeenusingitscommoditiestrading platform to recom-mend gold. “Apart from DigiGold,currently,wearepromot-ing gold ETFs and sovereigngold bonds to our clients toallow them to participate in

appreciation ingoldprices,”hesaid.Motilal Oswal FinancialServices on the other hand isadvising clients to buydigitalgold,which can later be con-verted into coins and barsdelivered inaphysical form.

Sovereign gold bonds thatwere launched three years agohad not received enough trac-tion earlier but that may bechanging. Kedar Deshpande,head-retail distribution, ICICI

Securities,said,“Wehaveseenarise in demand of sovereigngold bonds over the last fewmonths amongst our cus-tomers.”

Currently, the first trancheof the sovereigngoldbonds forthis financial year is open forsubscription till April 24.Thevalueof thebondis`4,639pergram of gold. Investors, whoapply online and pay throughdigitalmode,will receive a dis-count of up to `50 per gram.Mutual fundhouseshavebeenseeing demand for gold ETFs.Chirag Mehta, senior fundmanager - alternative invest-ments,QuantumMutualFund,said the gold ETF and goldmutual fundhave been seeinginflows and that they wereanticipatingmoreinflowscom-inginduetoAkshayaTritiya.

Experts typically recom-mendallocating5%to10%oftheirportfolio togold.

Financial intermediaries pushingpaper gold ahead ofAkshayaTritiya

Source: Bloomberg

MCX Gold Futures (`/10g)

25,000

30,000

35,000

40,000

45,000

50,000

31,729May 7, 2019

45,662April 22, 2020

NETFLIX ONTUESDAY said itsaw“big growth”inviewershipinIndiaassubscribersbingedonlocal content, shoring up userengagement. Indian originalslikeSheandGuilty,particularly,have found traction amongviewers,saidchief contentoffi-cer Ted Sarandos in the com-pany’s Q12020 earnings call.“And they (Indians) are alsobigfans of ourglobal original con-tent.LaCasaDePapelwasahugehitinIndiaforusaswellasmostofourotheroriginalsoutof theUS.So,wearegrowingthebusi-ness,licensed,original,interna-tional, domestic, across theboard in terms of content andcontenttaste,”Sarandossaid.

Video streamingplatformsinIndiahaveseenasurgeinsub-scriptionsas corporates shiftedtoworkfromhomemodeamidthecoronaviruspandemic.

—FE BUREAU

Netflix sees‘big growth’in India

THURSDAY, APRIL 23, 2020

FINANCIALEXPRESS6 WWW.FINANCIALEXPRESS.COM

❝ ❝

PROTECTINGDOCTORSUnion homeminister Amit Shah

PMModi’s govt is committed toprotecting those

whoareprotecting Indiaduring thesechallenging

times ... anordinance toendviolenceagainst our

doctors&healthworkers is a testimonyof the same

WE EXPECTGDP togrow by 0% inCY2020 (by2% inFY21)with down-side risks if the

lockdownwereto last longer.Weexpectnegative growth for 1HFY21, butimprovementthereafter.

Q1.Wasthenational lockdownabletoflattentheCovid-19curve?Thegoodnews is that a 5-dayestimate suggeststhat the doubling rate of the virus hasslowed--from 3 days to about 9 days.This could be a consequence of a rela-tively early lockdown and a high com-plianceratetothelockdownorders.Thebad news is that Covid-19 cases con-tinuetorise inIndia.Overall,it is fairtosaythatwhilethelockdownhashelped,India’s Covid-19 proliferation stillappearsprecarious.

Q2.Whatwill thegrowth cost of thelockdownlikelytobe?Activityhastakena big hit. Unemployment rates havesoared, the PMIs have fallen, car saleshavedroppedsharply,depositandcreditrates have weakened, and electricitydemandhasslipped.

If activity restart is successful, theeconomiccostcouldfall,butwillremainsignificantuntilthingsdon’tcompletelynormalise.Weestimatethatoverthepastfewweeksofthefullnationallockdown,65%of the economy,over50%of con-sumptionandarguablyallofinvestmentwere impacted.Bycombining the shareofeachsectorwiththeproportionlockeddown,weestimatethatthemonthlylosswas5.4%oftheyear’sGVA.

Theupshotaboutrestartisthatruralactivity will be easier to re-start thanurban. Some back-and-forth betweenauthorities and industries on specificrulesmaymean that restarting activitymay be more gradual than sudden.Studyingtherulescarefully,wefindthat50% of the economywill continue inlockdown, and if this continues for amonth,we estimate the economic loss

willbe4%ofGVA.Overall, we estimate that under

one-monthoffull lockdownthatIndiajust went through and perhaps two-weeksofpartial lockdownwilltogetherleadtoalossof~6.5%ofGV.Ifthepar-tial lockdownweretocontinueinsomeformbeyondtwoweeks,thecostwouldonlyrise.

Q3.Whichsectorsarelikelytogainasactivity is partially restarted? Partialopeningupmeansthatthepaceofactiv-itywill improve,orrather,theeconomiccostwill soften,particularly in agricul-ture,manufacturing,selectconstructionandgoods trade,basedonouranalysis.Three factors, in particular,are likely tosupport anyrevival in activity: 1) post-ponedconsumptiondemand;2) inven-toryrestockingdemand;and3)thegen-eral growth buoyancy. The more thelockdown is extended, the more therevivalprocesswillweaken.Anotherfac-tor that could aid recovery is lower oilprices ($35/b: forecast). A further fallwouldbeevenmoresupportive.

■Manufacturingwill likely trumpservices–Evenintherecoveryphase,asin the slowdownphase,manufacturingislikelytodobetterthanservices.

■Ruralactivityshoulddobetterthanurbanactivity.

■ Consumption should do betterthan investment.Lookingat past slow-down episodes,we found that inyearswhengrowthwasweak,thesavingsratetended to fall as households dissave tostabiliseconsumption.Wefindthat55%of the consumptionbasketmaygethit,

but the remaining45%(mostlyessen-tialconsumption)shouldremainstrong.Ontheotherhand,wefoundinvestmenttobeextremelysensitivetouncertainty.Asquestionsaroundtheenddateof thevirus remain confounding,we expectinvestmentdemandtoremainweak.

Q4. Are authorities inclined tostimulate further? Besides the exist-ing socialwelfare package of 0.8%ofGDP; we calculate a net additionalcost of 0.5% of GDP.We expect thecentre to shortly unveil a fiscal pack-age directed at small businesses. Inaddition, states have been increasingoutlays on social welfare pro-grammes,suchascashtransfers tothepoor. RBI came in strongly onMarch27,italsofollowedupwithsomestepsto open the bond market further toforeigners.And then again, on April17. Two common themes that havedominatedthepolicyspacehavebeen,1) gradual steps rather than an all-at-once approach and 2) more ‘conven-tional’ steps than ‘unconventional’ones.Restartingwould needworkingcapital for all.We expect the authori-ties to provide someof it.

■Moreofwhathasalreadybeendone–Spendingonhealthcare,socialwelfarespending ondisplaced individuals andcredit support to small firms could risegradually.FromRBI’sperspective,moreratecutsandfurtherliquidityinfusionswithreporateat4%byQ2.

■Newsteps,but conventional ones–OMO purchases could help absorbsomeof the fiscal costs. In someyears,

RBI has done largeOMOs (e.g.`3 lakhcroreinFY19).Thishashelpedtoeasethepressureonbondmarketswhileremain-ingfirmlyinthe‘conventional’territory.Anothercandidate inthisareawouldbebankrecapitalisationbondsforbanks.

■ Someunconventional easing– Itremainsuncertain if authoritieswouldgo down too many unconventionalpaths.Unconventionaleasingcouldper-hapsonlycomeaboutif1)theCovid-19painsintensifyfromthecurrentlevelor2)ifsomeoftheearlierstepsdon’tproveefficacious. These could include RBIlending directly to NBFCs, such asthroughSection18oftheRBIAct,orRBIaccepting a broader set of financialinstruments,suchascorporatebonds,atitsLAFwindow.

Q5.How large could the stimuluspackagebe?Weexpectboththecentraland state governments to miss theirfiscal deficit targets. We expect thecentretocomeinat6%(versus3.5%),and the aggregated state fisc to comein at 4% (over the permissible 3%).Including the revenue shortfall, weexpect a fiscal stimulus of 5%ofGDPdivided between lower revenues,spendingonhealthcare and spendingon individuals and small businesses.Central government will have to tapseveral other sources, both domesticand global (NRI bonds, IMF andWB),both conventional (OMO purchases)and unconventional (private place-mentswith certain financial institu-tions). RBI will have to play an evenmore important role thisyear.

Q6.Arethereanysilver-liningsamidallofthis?Inthepast,Indiahastendedtoundertake reformsbest during a crisis.Weidentifythreereforms:

■Agriculturalmarketing–Withsev-eralgovernmentmandisshuttingdownoronlyworkingatpartialcapacity,farm-ersmaybegin to sell directly to privatesectorprocurers.

■ Rural industry – A window ofopportunity for rural Indians, owingto partial opening, to ramp up indus-trial activity.

■ Expenditure rationalisation –Given the tight fiscal space, the gov-ernmentmaybe incentivised toweedoutsub-scalegovernmentexpenditureschemes and use themoney formoreeffective direct cash transfers. Thiscouldamounttoamajorfiscal reform,inourview.

Theysaythatnooneshouldmissouton a good crisis.Perhaps India shouldmakemostofthisone.

Co-authoredwithAayushiChaud-hary,economist,HSBCGlobalResearch

EditedexcerptsfromHSBCGlobalResearch’sreport(datedApril22)

● LOCKDOWN IMPACTEVERYMONTHOFFULL LOCKDOWNLEADSTOA5.4%LOSSOFGVA.HALFOFTHEECONOMYWILL

BE IMPACTEDBYTHEPARTIAL LOCKDOWN&THEMONTHLYLOSSWILLBE4%OFGVA

PRANJULBHANDARI

Chief economist, India, HSBCGlobal ResearchViewsare personal

ADAMMINTERBloomberg

AFTER DECADES OF BITTER fights,environmentalistsseemedtobewinningthe war against single-use plastics inrecentyears,withcitiesaroundtheworldbanningortaxingthem.Thenthecoron-avirusarrived,raisingfearsthatreusablegoods might lead to infections. Theimpact has been swift.FromMaine toHawaii,plastic-bagbanshavebeen sus-pendedorpostponed.In SanFrancisco,reusableshoppingbags—oncetotemsofthe city’s vibrant commitment to sus-tainability—havesimplybeenoutlawed.

These reversals have sparked deepconcernamongactivists.Somefearthebanswillneverbereinstated;othersthatreusableproductsmaybepermanentlytaintedas“unsafe.”Thegoodnewsisthatactivists aren’t the onlyones demand-ingmore sustainable packaging thesedays.So are consumers—and some oftheworld’sbiggestcorporationsarepay-ingattention.

Campaigns against consumerplas-ticsdateroughlytothediscoveryofthePacificgarbagepatchin1988.Theenvi-ronmental movement was soon gal-vanised,andsingle-useplastics—espe-ciallygrocerybagsandstraws—becamea focusofglobal activism.Muchof thiswasmisdirected.AccordingtotheEnvi-ronmental ProtectionAgency,plasticbagsandwrapsamountedtoonlyabout0.3% of all the waste generated byhomesandbusinessesin2010.Bycom-parison, containers and packagingmakeupabout30%.

Nonetheless, the proliferation of

ocean plastic has worried consumerswell beyond San Francisco.Last year,asurveyof 6,000people in11 countriesfoundthat77%perceivedplasticstobethe “least environmentally-friendlypackagingmaterial”.Perhapsunsurpris-ingly,72% said they are buyingmoreenvironmentallyfriendlyproductsthanthey were five years ago, and 83%thoughtitwasimportantforcompaniestodesignproductsthatcanbereusedorrecycled. Those shifting perceptionshaven’t gone unnoticed by consumerbrands.Overthepastdecade,someofthebiggesthaveadoptedambitioussustain-abilityagendas.In2017,AppleIncrolledout an aggressive strategy to embracesustainablepaperandcardboard,whichresultedina30%reductioninplasticusein iPhone 7 packaging.The next year,nearly300globalorganisations,includ-ing companies such asNestle SA,Mon-delezInternationalInc.andColgate-Pal-molive Co, pledged to eliminateunnecessaryplasticpackagingentirely.

Some of those commitments maynot amount tomuch.But, the broadertrend isunmistakable.Forexample,lastMay,5,000UShouseholdsgainedaccessto a zero-waste e-commerce site calledLoop. It offers brand-name productspackagedincustom-designedglassandmetal containers,which the companywill deliver toyourdoorstep in reusabletotebags.Onceyouaredonewiththem,Loopwill collect all the packaging forwashing and refilling.Tom Szaky, thechiefexecutiveofficerofTerraCycle,the

companybehind the site, toldme thatthe experience isn’t all that differentfromthrowing stuff out; it asks almostnothingoftheconsumer.

Loop isn’tmakingmuchmoney tostart.Butitsanimatingidea—thatreuseshouldbeaseasyasthrowingsomethingaway—is powerful enough that someverybigconsumer-goodscompaniesarenowdesigningpackagingspecificallyforthesite.WantCloroxwipesdeliveredinareusable metal container? Loop hasthem.Want the same experiencewithHaagen-Dazs ice cream or Panteneshampoo?Loophasthosetoo,alongwithproducts from400otherbrands.It alsohas awaiting list ofwould-be shoppersthatisabout“100,000long,”Szakysays.Later this year, the companywill startofferingpick-up-and-return services atretailoutletsaroundtheworld.

“Manufacturersarepromisingrecy-clabilityand reusability,”Szakytoldmeduring a Zoomsession,“andweare theeasiestwaytodoit.”Loopmayormaynotbe successful in the long-term.But thefact is, consumers everywhere areexpressing a clear preference for sus-tainability—andbrandsareincreasinglyresponsive.Whateverhappenswithplas-tic-bag bans, it is highly likely that thisdynamicwillensurethatsingle-useplas-tics continue to fade from themarket-place.Thecoronavirus,forallof itschal-lenges,won’tchangethathopefultrend.

Thiscolumndoesnotnecessarilyreflecttheopinionoftheeditorialboard

orBloombergLPanditsowners

Immigration banCloseon theheels ofadecision tohalt the funding forWHO, theUSpresidentDonaldTrumphadunveiled his plan to instituteimmigrationban throughanexecutiveorder,which is primarilyaimedat those seeking "GreenCards" for permanent residency.Though theproposed immigrationbanbyTrumpwould last for 60daysandnot covering individuals enteringthe individuals for temporarybasis.Onecannot helpbut feel that hehasbeen assiduously usingpresentextraordinary situation confrontingthe country following theoutbreakofcoronavirus topersistwith hisavowed immigration agenda anddivert attention fromhis allegeddrastic failure to contain theoutbreak. His "America First Policy"formed themajor poll plankofhispresidential campaign andplayedakey role in catapulting him to theWhiteHouse.With his presentapproval ratings nosedive in thebackdropofhis allegedabysmalhandlingofoutbreak, he foundhis"unfinished immigration agenda" apotentweapon togalvanise his coreconstituencyofvoters to retainpresidency in the upcomingpresidential election. PresidentTrumpmayhavehis owngameplanon the front of immigration, but hiscountry, owed its present standingas theonly super power among thecomity ofcountries to its lakhs ofimmigrant community.—MJeyaram, Sholavandan

But,activists aren’t the only ones demandingmoresustainable packaging.Consumers, too,are—and someof theworld’s biggest corporations are paying attention

LETTERSTO

THE EDITOR

Still waters toslowboil

Plastic bags aremaking a comeback

●Write to us at feletters@expressindia.com

Regd. No:MM&PO/WB/RNP-75/ 2003RNI No. 53038/91 Printed and PublishedbyVSrinivasan onbehalf ofThe Indian Express Private Limited and Printed at Saraswati Print Factory Pvt.Ltd, 789, Chowbhaga (West), Kolkata -700105 and Published atThe Indian Express (P) Ltd . JLNo.29 & 30, N.H.-6, Mouza - Prasastha &Ankurhati, P.O. - Salap, P.S.-Domjur, Howrah - 711 409..Ph : 033 66043800 Fax : (033) 66043825& 66043847 (Cover price: North East States &Andaman:

Mon-Fri `10, Sat `13, Sun `13). Chairmanof the Board:ViveckGoenka,Managing Editor: Sunil Jain, DeputyManaging Editor: Shobhana Subramanian * (*Responsible for selection ofnews under the PRBAct ) . Copyright:The Indian Express Private Limited.All rights reserved. Reproduction in anymanner, electronic or otherwise, inwhole or in part,without priorwritten permission is prohibited.The Financial Express®

Opinion

1.0

0.5

1.0

2.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Repurposingexpenditure

Repur-posingexpen-ditureOil

bounty

Oilbounty

NationalSmallSavingsFund

Directplace-mentwith theRBI

Externalsources(NRIs,IMF,WB)

Openmarketopera-tions(OMOs)

Directplace-mentwithFIs

Higherstate

Highercentre

Total

Total

% GDP

5.0 5.0

0.5

1.00.5

0.75

1.250.5

0.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Size of fiscal stimulus% GDP

Source: HSBC estimates

Funding of higher fiscal deficit scenario

Revenueslip:2%

Health:1.5%

Hhd &MSMS:1.5%

TheRealTestFaulty Chinese testing kits underscore the need to ensure

quality of Covid-19 response alongwith speed

FOLLOWINGCOMPLAINTSFROMvariousstatesoftestingofthesamesamplesby rapid Covid-19 testing kits (antibody testing) provided by ICMRshowingwide variance of results—6-71%—with RTPCR testing (antigen-based test-ing), ICMRasked states not to use the rapid testing kits for 48 hours,during

whichitwilltestthekits’qualityanddeterminewhethertheyhavetobejunked.ThekitshavelargelybeenprocuredfromChinesemanufacturers.China,whichhascomeunderglobal censure formishandling theCovid-19 outbreak inWuhan that led to the pan-demic,hasbeentrying tooffset thedamage to itsdiplomatic relations through large-scale supplyof testing kits and personal protection equipment.But,manycountries,includingSpain(whichhasseenover21,000deaths)andtheNetherlands,pointedoutthat the Chinese kitswere faulty and returned them.Against this backdrop, the Chi-nesegovernmenthadadvisedprocuringonlyfrommanufacturersapprovedbyit.WhileICMRreportedlydidthat,itshouldhaverunthequalitychecksitisnowrunningbeforeitdisbursed thekits to thestates.

Without doubt, there was a need to equip states with kits to make sure testingcouldbeexpandedtonetmorecases.Indeed,oneof thestates thatcomplainedofthetestingkitsbeingfaulty,WestBengal,hasaverylowtestingpenetration—71permil-lion.With its infectiongrowthoverthepast fewdayshigherthan the India-average,manycases are likely to remainundiagnosed if the state continues to test at its cur-rent level.Thiswould certainly call for the Centre ensuring enough testing kits areavailable forstates to roll outwidertesting.That said,while ICMRsays that the test-ingkitswerecheckedforqualityinDelhi,the fact thata48-hourwindowwassoughtto check these again shows that the initial checksmaynot have been adequate.TheUniongovernmentneeds to ensure thatqualityandeffectiveness arenot sacrificedfor speed, though both quality and speed need to be upheld.The ICMRmust nowadopt amore sure-footed strategy—even though understanding of Covid-19 is farfromcomprehensive right now,the countrycan ill-afford a lack of stability in crisisresponseof thekindexemplifiedbythepresent instanceofpoorqualitytestingkits,and the recent back-and-forth on prophylactic usage of hydroxychloroquine forfrontline healthcareworkers.

RationalExpectations

THERECANBElittledoubtthatmanyofthestatementsmadebyBajajAutoman-agingdirectorRajivBajajinaninterviewtoCNBC-TV18werequiteoverthetop;onegemwas“lockdownisasolutionlookingforaproblem”.Anotheronewas“Idon’tknowwhatcurveistherethatneedstobeflattened…allevidenceglobally

suggeststheyoungandhealthydon’tneedtobeflattened…theyneedtogetbacktowork…itisonlytheoldandvulnerablethatneedtobesecured”.Asithappens,onApril6,thegov-ernmentpointedout,that47%oftheinfectedwerebelow40yearsold,34%between40and60andjust19%above60.

Also,whileBajajwascontemptuousof the flatteningof thecurve,amonthago,thenumberinfectedweredoublingeverythreedays,andthatishappeninginaroundninedays rightnow.If thecurvehadn’tbeenflattened,there isnowaythat India’sburstinghealthsystemcouldhavehandledthepressure.Withthetimebought,goingbyanIndiaTodayexclusive,thegovernmenthasbeenabletoadd4lakhisolatedbeds,withathirdintheworst-affectedstateofMaharashtra.Iftheinfectiongatherspaceagain,thismaynot be enough,but fornow,there is little doubt that primeministerModi’s lockdownhasbought India critical timetoprepare.

But,onceyougetoverthehyperbole,Bajaj isrightthatIndianeedstorestart itsman-ufacturing and services businesses as early as possible,and,right now,the plans beingannouncedbythegovernmentarefullofholes.Thatisnotsurprising,giventhepressurethegovernmentcontinuestobeunder,butitisnowtimetothinkcoherentlyaboutrestart-ingbusiness.TheApril15notification—thedayafterthefirstlockdownended—spokeofbusinessesbeingallowedtorestartafterApril20undercertaincircumstancesandinareaswhichhad lowlevels of infection.It spokeof industries being allowed tooperate if theywereinruralareasorin‘accesscontrol’areaslikeSEZs,EoUs,industrialestatesandindus-trial townships.It said theseunitswouldhave toeitherhouse theworkersorkeep themprettyclose to theirfactories,presumablytoensure therewasn’tmuchtravel.Yet,it alsospokeof transportbeingarrangedbytheemployer,suggestingeven industrieswithout‘accesscontrol’wouldbeallowedtostart.

It also didn’tmake sensewhen,after agreeing that e-commercewould be allowed,pressure frombrick-and-mortar retailers—and probablynot just the small retailers,thoughtheywereatthefrontoftheagitation—thegovernmentsaide-tailerswouldonlybe allowed to sell ‘essential’ items.And,as several automobile firms—includingBajaj—pointedout,theycan’tpossiblyrestartproductionuntiltheirentiresupplychainiswork-ing;andhowdoyouevenproducewhen,withtheretail showroomsstill closed,there isnovisibilityon likelydemand?

Also,asCIIhaspointedout,manyoftheconditionsmakeit impossibletoeverrestartoperations.Theprimeministerspokeofhowpermissionswouldbewithdrawniftheinfec-tionspreads,butwhatdefinitionofspreadingistobeused?Keep inmind that in the first lockdown—whennoactivitywasallowed—thenumberofcasesrosefrom606onMarch25to10,815whenitendedonApril14,andthishasrisento20,471today.If areasare suddenlytobedeclaredhotspotsandall industrial/serviceactivityistobeshutimmediately,howcananyoneplanoperations?Surelythedefinitionofahotspot needs to be looked at carefully,and,more impor-tant,doestheentireareaaroundit—and,tillhowfaraway—needtobemadeano-activityzone?

Indeed,local administrations appear to be adding evenmore stringent conditions.According toCII,one suchcon-dition is that if anyworkertestspositive forthevirus,therewill be criminal charges on the establishment.Criminalcharges? For an act that employers have no control over?Punish them fornotmaintaining‘social distance’,not fol-lowingsanitaryanddisinfectingnorms,butthepunishmentcan’t be sodraconian;more sowhen the spreadduring thelockdownmakesitclearthevirushasalife—andcourse—ofitsown.

Sincetheattentionhasbeenon‘flatteningthecurve’tillnow,confusedandirrationalpolicieswereperhapstobeexpected.But,evenwhilethedangerofthespreadpickingupagain is real,thefact is that Indiacan’taffordto lockdownmuchlongereither.It is truethat the government is nowpreoccupiedwith howbig the relief package needs to be,howitistobefinanced,whetherthiswill leadtothecountrybeingdowngradedtobelowinvestmentgrade—Indonesia’soutlookwasrevisedafewdaysagoafteritannouncedapost-Corona spending plan—and howmuch debt and equity fundswill flowout as aresult (bit.ly/2VOAMaP).

But,restartingproductionisanintegralpartofthefinancialpackage.Indiahasaworkforceof45croreandif,intheabsenceof jobs,theyaretobepaidevenamere`2,500permonth for,say,threemonths,thismeans a bill of `3.4 lakh crore!And,we are not eventalkingofthemassiveNPAsthatwillresultfrombusinessesnotbeingabletoservicetheirloans,and thepermanent damage to the economyofnot having aworkable exit-from-lockdownpolicy;thehumansufferingcan’tevenbeimagined.Bajajwasoverthetop,buthedrewattentiontoaveryrealproblem.

SUNILJAIN

sunil.jain@expressindia.com@thesuniljain

Need a clearpost-Corona exit strategyThe lockdownswere critical,but the limited opening up has

beenmarredwith confusion; thatmust be sorted out

Flattening the

curve has bought

us time, but not

restarting business

is also costly. If 45

croreworkers are

given just `2,500

per month for 90

days, that’s a cost

of `3.4 lakh crore

the govt must bear

THEGLOBALFINANCIALcrisis(GFC) of 2008 was called ablack swan event, the adverseimpacts ofwhichwere felt formorethanadecade.Nosooner

didtheglobaleconomyrecoverfullyfromthe GFC than Covid-19 emerged fromWuhan,China,andspreadtotherestoftheworld likeawildfire.AsonApril15,2020,morethantwomil-

lion people around theworld had testedpositive for the novel coronavirus; theglobaldeathtollsurpassed1.26lakh.Intheabsence of a definite pharmacologicalintervention for curing or preventingCovid-19, isolation, quarantining, andsocialdistancingarebeingfollowed,besideslockdownofalleconomicandsocialactivi-ties.Amedicalemergencyofthisproportionisunprecedentedinknownhumanhistory.While countries like China, South

Korea,Japan,etc,believethatthespreadofvirushasbeencontrolled,thewaragainstthe same is in full swing in the rest of theworld.Globally,some formof a lockdownhas been implemented.This is a criticaltimeforhumankind,andthepriorityis tocontainthespreadofCovid-19atanycost.If decisions are delayed,the public healthemergency situationmayget out of con-trol,with catastrophic implications.Onecouldnotimaginethatinthe21stcentury,civilsocietymustconfrontapandemiclikeCovid-19sohelplessly.

As a fallout of theGFC,the globalGDPcontractedby1.7%in2009.Thefinancialsector bore the heaviest brunt of this.Recoverywasgradual thereafter,butpro-ductivity growth did not improve for alongperiodduetocollateraldamagetothebehaviourofbothconsumersandproduc-ers.Thistimearound,thelockdownwouldaffectallsectorsoftheeconomyinstanta-neously. As the Covid-19 crisis is stillunfolding,makinganearlyestimateof itsimpact is difficult. Many economists,think tanks,andmultilateral institutionswho have provided estimates have eitherrevised them,or are on the verge ofwith-drawing their earlier projections. As of

now,it is certain thatglobalGDPwill con-tractbyawidermarginin2020thanitdidduringtheGFC,theworstimpactofwhichwas felt in2009.Several professional forecasters have

provided early estimates of the impact ofCovid-19onIndia’sGDP,butthesemaynotbe credible as India has not yet overcomethecrisis.TheimpactofCovid-19dependson its intensity,spread,andduration.RBI,in itsApril 2020MonetaryPolicyReport,has explained the uncertainty, andrefrained from giving hard numbers ongrowth and inflation projections.Accord-ing to the IMF’sWorld EconomicOutput,India’srealGDPmaygrowat1.9%inFY21,

whichisnowdoubtfulduetotheextensionof the lockdowntillMay3,2020.Despite this extension, certain activi-

ties,particularly in rural areas,have beenallowedto resumefromApril20.Hence,asimpleexercisehasbeendonetocalculatethe loss of India’s GDP for five weeks,whichmay be between `10.8 lakh croreand `21.6 lakh crore in nominal terms,assuming theGDPloss to be at least 50%and at most 100% (see graphic). Corre-sponding nominal GDP growth in FY21may fall between -0.3% and +5%.Simi-larly,realGDPgrowthmayvarybetween-4.1% and +1% in FY21. Loss may con-tinueevenafterfiveweeks,asliftingofthe

lockdownmay be gradual.However, thismaybepartlyoffsetbythefiscalandmon-etarypolicystimulusannouncedso far.Steering public policies during a crisis

isdifficult.Growthslowdowniscertainlyamajorconcern.Debatehasalreadystartedontheneedforabiggerstimulus.Pressuregroupsoften tryto extract asmuchbene-fitaspossiblefromthegovernment,with-out evaluating consequences.Let us con-sider the fiscal option. The gross fiscaldeficit (GFD) of about `8 lakh crore,pro-posed in the FY21 budget, has alreadymade a departure to the tune of 0.5% ofGDP from the fiscal consolidation path.Therevenueestimates inthebudgetwere

optimistic, and the disinvestment pro-posalwaschallenging.Thesituationwouldbeworse post-Covid-19, and shortfall ofrevenueonthesetwocountsmaybeabout`2 lakh crore, having implications forGFD.AsnominalGDPcannotgrowat10%in FY21, the GFD-GDP ratio wouldincrease. The accompanying graphicshows thatGFD-GDPratio, including thefiscal stimulus given so far, is likely to be5.6%to5.9%inFY21.Thismaybehigherbyanotherpercentagepoint ifextra-bud-getary resources are included—a depar-tureof3.5%to4%ofGDPfromthefiscalconsolidation path.Deviation from theconsolidation path is inevitable during acrisis.But,thefiscal spaceavailable isverylimited; therefore,monetary policy hasbeenmoreaccommodativethanexpected.Themedical emergency being the top

priority, both central and state govern-mentsaremakingalleffortstocontainthespread of virus, and therebywin thewaragainstCovid-19.In caseof a failure,pos-sibly due to reckless behavior of a smallsection of society,even helicoptermoneywill not be sufficient to provide relief, letalone reviving theeconomy.If life is secured,theremaybeasecond

chance to revisit the package for liveli-hood.Securing both life and livelihood ispossibleonlyifallcitizensextendunstint-ing support to the government in con-taining thespreadofCovid-19.

OPINION 7FINANCIALEXPRESS

WWW.FINANCIALEXPRESS.COM THURSDAY, APRIL 23, 2020

AFINE BALANCE

ARABINDAKPADHEE&PRANABRCHOUDHURY

Padhee is Country Director, India, ICRISAT&Choudhury isVice-President, NRMC.Viewsare personal

THE COVID-19 PANDEMIC has added a newdimensiontotheagriculturesector’swoes.Smalland marginal farmers, landless agriculturallabourers,and informalworkers are thehardesthit.The ongoing national shutdownmayaffect

farmoperations ifmeasuresannouncedbythegovernmentaren’t implementedseriously,andcorrectiveactiontaken.Thatthepresentcrisiswillhaveaprofoundimpactonthe

economyandfoodsecurityisaforegoneconclusion.Welfaregovernments,bothcentralandstates/UTshavedonewelltodeclareagricultureasanessentialservice,andcomeoutwithfinancialpackagesandsocial securitymeasures.Asthecoronacrisiscoincideswiththerabiharvest/prepa-

rationforkharifsowingseason,itsimpactsonfoodproductionandmovementthroughthevaluechainloomlarge.Duringthelockdown,constrainedlabourmovementhasalreadyadverselyaffected farmoperations inparts ofnorth-west India.States,civil societyandbusinesses arenowgearingup tominimiseimpact,andhopetosailthroughongoodseasonalbounty.Small andmarginal farmers remain the dominant food

producerandmajorworkforcein India,andthecountrywouldrelyonthemtocontributetothepost-pandemicrevival.How-ever,sofar,theyremaininvisibleinthecurrentdiscourse,duetotheirinformality,aswellaspoliticalanddigital inability.Smallandmarginalfarmersconstitutemorethan85%of

farmhousehold,cultivate about half of all farmlands as perAgricultureCensus,2015-16,andproduceabout60%offarmgoods,criticaltoIndia’sfoodsecurity.TheyalsoconstitutethebiggestgroupofIndia’spoorandmostfoodinsecure.But,smallfarmingremainsadaptive,makingthisgroupthemostimpor-

tantconstituentoffarmdebateintheCovid-19context.A key trigger of growth of

informal workforce is ruralland tenure informalitiesembedded in rural landless-ness,andall-pervasiveagricul-tural tenancy and sharecrop-ping. Agriculture workersrepresent half of the informalworkforce.It is nowbeingdis-cussed that a number ofmigrantworkerswho fled thebig cities may never return,

preferringtofindworkontheirmarginalfarmsorinnearbytowns.RuralIndia,especiallythefarmsector,therefore,mustpre-

pare to productivelyabsorb these additional labour. India’ssmall farmsmaybeabletoproductivelyengagethem,astheyareextendedenhancedtenuresecurity,whichcantriggerfarminvestments,‘sustainable’intensificationanddiversification.Tenancyhas risenover the last fewdecades despite post-

independence land reforms banning this.Nearly2.1 crorehouseholdsinthecountrycultivate1-1.1crorehectaresoflandon informal lease basis as per70th roundofNSSO.Tenantsremainmorevulnerabletoandimpactedbydisastersandcroploss,bothunderfixedtermtenancyandsharecropping.NITIAayog cameupwith themodel LandLeasingAct in

2016,whichencouragesstatestolegalise landtenancy,bene-fittingbothtenantsandlandlords.Post-pandemic,statesmustconsideraccommodatingreturneemigrantsinsmall-farmingbylegalisingandimplementingleasingreforms.Intheabsenceoftenancydocuments,benefitsofschemesundertheCentre’s`1,70,000crorereliefpackagemaynotreachmanyamongtheneedy.Land-leasingreformsanddocumentationcanaidmoreinclusivedeliveryofpublic service entitlements to thesevul-nerabletenants,criticaltotriggerruralrevival.Alongwith flattening thecorona-curve,statesmustalso

prepare to downsize the post-pandemic impact,and beginworking on revival strategies—ironically, India’s informallabour,apart frombeingmost vulnerable,holds the key tothis.Informalityoflabourislinkedtoinformalityaroundlandrelations; post-pandemic farm growth hinges on strategicactiononlandleasingreforms.Withoptionsandexperiencesaroundleasingreformalreadyavailable,thepoliticalwillandbureaucratic expediencywill demonstrate howmuch Indiacaresabout its small farmers,whenplanningfoodsecurity.

Seedsof ruralrecovery

States must consider accommodatingreturneemigrants in small-farming byimplementing leasing reforms

Livesvs livelihoods

BARENDRAKUMARBHOI& SURYANSHUBHOI

BK Bhoi isVisiting Fellow, IGIDR& SBhoi is anMBA student, Smith School ofBusinessViewsare personal

Failing to control Covid-19 spreadmeans even helicopter

moneywon’t be sufficient to provide relief, let alone

economic revival

Impact of lockdown on India’s GDP(₹ trillion/Growth rate in brackets)

Year Nominal GDP Real GDP

2019-20 (2nd AE) 204 (7.5) 147 (5.0%)

2020-21 (BE) 225 (10.0) 156 (6.0%)

100% 21.6 15.0

75% 16.2 11.2

50% 10.8 7.5

100% 203.4 (-0.3) 141.0 (-4.1)

75% 208.8 (+2.4) 144.8 (-1.5)

50% 214.2 (+5.0) 148.5 (+1.0)

100% 5.9 (6.9) -

75% 5.7 (6.7) -

50% 5.6 (6.5) -

Loss of GDPduring lockdown(5 weeks)

CorrespondingGDP/ (GrowthRate) for 2020-21

Implicit GFD- GDPratio*/(GFD-GDPratio including extrabudgetary resources)

*GFD may be

about

₹12 trillion (BE

about ₹8 trillion

+ Shortfall of

revenue and

disinvestment

₹2 trillion +

Fiscal stimulus

so far,

₹2 trillion). GFD,

including EBR

(roughly

₹2 trillion) will

be ₹14 trillion

NITI Aayog came

upwith themodel

Land LeasingAct,

which encourages

states to legalise

land tenancy,

benefitting both

tenants and

landlords

THE RAPID ONSET of theCovid-19pandemichasbeena shock tomost existing sys-tems and structures.This isapparenteveninthedelivery

of,and access to, justice.These are timesunlikeanyother,andextraordinarymea-suresarebeingtakenacrosstheworld.TheSupremeCourt of theUnited States has,forthefirsttimeinacentury,indefinitelyclosed its doors to oral hearings. Entirecontinents are invirtual lockdowns,andsystems are under strain.For the Indianjustice system,disruption through tech-nologywill be key.With the pandemic,deploymentoftechnologyisnecessary inthe short term, to ensure social distanc-ingincourtrooms.Inthelongterm,itwill

be even more necessary, to ensure dis-tancing norms,and to help reduce pen-dency and burden on the courts.This iscrucial tomake positive inroads into thestaggering number ofmatters pending,whichare inexcessof3.5crore.Thiswill ensure that access to justice

and efficiency of dispute resolution inIndia is foreveraltered.Significantworkhasalreadybeendonetoharmonisetech-nology, innovation, engagement, andframeworks. It is merely a question ofgetting intomissionmode to expeditereforms, and move from dialoguestoward immediateaction.

Decriminalisingminor andpetty offences

Today, authorities globally are usingtheirdiscretiontodifferentiatebetweenpetty, non-violent crimes and othercrimes so as to reduce the number ofimprisonments, and thereforemitigatethe risk of community spread. In thisregard,theGovernmentof India’s ongo-ing effort to decriminalise minor andpetty offences by making them com-poundable remains visionary and citi-zen-friendly.Recently-enacted laws arealsoworkingwiththisconcept,aswellasenablinginnovativeoptionssuchasclassactionsuits tohelpreducethevolumeoflower-valuematters reaching the courtsas individual lawsuits. Enabling groupsof petitionerswith compiled grievancesto jointly file suit will streamline thecauseofaction,and lowerthenumberofmatters filed,helpingreducetheburdenovertime.Foreaseofdoingbusiness,withprotection for bona fide decisions, thedecriminalisationofcertainoffenceswillgoa longwaytowardincreasinginvestorconfidence. This is supported by therepeal of more than 1,500 archaic andredundant laws thus far.

Virtual courtrooms:Role of technologyIn the near future, technologycanno

longer justbeasupport,butmustalsobeanenablerofjusticeforthosewhohaven’tbeen able to easily access it until now.Aframeworkforthedevelopmentofvirtualcourtrooms and remote hearing centresthat enables all concerned,including thejudges,tooperateremotelyandefficientlywas perhaps due even before the pan-demic,which has turned it into a neces-sity.Also,therequiredandgrowingroleofe-adjudication and technology-led dis-pute resolution not only ensures remotesolutionsinthesetimesofsocialdistanc-ing, but also maximises efficiencies,reducescosts,andenhancesconvenienceforcitizensat large.AI,foraspectsnotrelatedtoobjective

and discretionary decision-making,hassignificant potential. ROSS, anAI solu-tion for legal services, is said to havelaunched a revolutionary contextualsearch technology, which actuallyenables lawyers to research 80% faster.India,too,hasinnovatorsinthisspaceforcase-lawresearchandlitigationsupport,withpotential forachievingscale.This isamajor pivot for support services in thelegaland judicial ecosystem.Aconversa-tion between service providers and dis-pute resolvers could help add cohesion-led problem solving,with the option ofimminent scale.

Relying on dataAnimportant first stepfromcollabo-

rationwouldbetohelpensurethedown-streamusabilityofreliableandverifiabledata.The data could be generated fromfilings, judgments, and related docu-

ments to assess and analyse the effi-ciency impact.Machine-readable lawswill alsohelp.Bystandardising inputs ina way that are technology-adaptable,analysiswillbepossiblewitha largedataset and,presumably,more reliable thananecdotal evidence generated throughcurrent data-gathering and analysis.Technological tweaks to help data couldperhaps,infuture,beanalysedforidenti-fying under-trials who have alreadyservedtheirtermwaitingforacourtdateinthecaseofpetty,non-violentoffences.Augmenting reforms, both legal andjudicial,with technology interventionscould perhaps help unclog prisons andcourts, assess efficiency and streamlineaccess to data and result in better case-flowmanagement for judges.

Continuing legal education forqualitative improvementsThe legal fraternity can also help in

increasingcapacityandcapabilitytohelpthe most vulnerable. Widening theimportance of continuing legal educa-tion can help streamline and updateknowledge of processes and laws for alllawyers practising across the varioustiers,bringingqualitativeimprovements.Virtual classrooms for these can allowpan-India dissemination in a cost-effi-cientmanner.Aconcerteddrive canalsobeinitiatedtoimproveprocessesforlegalaid,includingthroughabroad-basedprobono initiative tohelp thosewhoneed itthemost.

The time for disruptive reformis nowThe Supreme Court, to its credit,has

been increasingly progressive in recenttimes.Successive Chief Justices of Indiahave expressed their willingness toevolve the judiciary into a technology-friendly landscape. Chief Justice SABobdeinparticularhaswelcomedtheuseofAIandmachinelearningfornon-inva-sive aspects, to enhance efficiency injudicial functioning.In fact, the court asawholehasbeenopentoinnovationandcognisant of the need to change the sta-tusquo.Thee-Courtsproject,andalignedinitiatives,areindicativeofthatmindset.But, now, novel technology-led ideasshould be initiated as pilots, and pilotsshouldbe rolledoutwidely,without fur-therdelay.Technology-led solutions will help

flatten the curve for accesswhile, in thelong term,reducing the stressoncourts.There will, as with all disruptors, be alearningcurve,andlonger-termimplica-tions in providing a sustainable frame-work. Continuous dialogues will helpbridge many of those gaps. Positive,visionary responses to emergenciesdefineinstitutionallegacies.Therewillbeno better time for disruptive changes tobe introduced forthe long-termgood.

Corona crisisprompts

reimagining ofjustice delivery

The corona shock poses questions formost

existing structures, including delivery of justice.

Use disruptive technology-led solutions to

flatten the curve for access to justice and, over

time, reduce the stress on courts

●COVID-19

ILLUSTRATION: ROHNITPHORE

AMITABHKANT&DESHGAURAV

SEKHRIKant is CEO& Sekhri is Officer on Special Duty, NITIAayogViewsare personal

●ADOSE OFREFORMS

THE DUTCH GOLDEN Age fell apart in1672,when surrounding powers—Eng-land,France and a pair of German princi-palities—teamed up to sack the Nether-landsandseize itscolonies.Eversince,thesmall country’s diplomats have made it aprinciplenevertobecomeisolatedagainsta united European front. Yet as theEurogroup(thefinanceministersofthe19countries that use the euro) planned theirresponse to Covid-19 this month, theNetherlands found itself alone. For 36hoursthethriftyDutchwerethesolehold-outs against a deal to help afflicted coun-tries tackle recession.

OnApril9th,aftertwoteleconferences,

theEurogroupcompromised.Therewillbea€200bn($215billion)EuropeanInvest-ment Bank programme and a €100bnfundfromwhichgovernmentscanborrowto support unemployment benefits andsalaries. For medical expenses, countriescan unconditionally borrow up to 2% oftheir gdp from the European StabilityMechanism (esm),an emergencyfund setup during the euro crisis of 2010-12.Butthe Dutch refusal to go further has madelots of Europeans angry.

The target of their ire is the blunt-spo-ken finance minister, Wopke Hoekstra.Before the negotiations,he sententiouslychided southern Europe for failing to cutdeficits to prepare for a downturn, as theNetherlands had.(In fact,Italy’s spendingcutswerecomparabletotheNetherlands’,buttheDutcheconomygrewfaster.)IntheEurogroupmeetingherejectedaproposalby nine countries, including France, Italyand Spain, to issue collective euro-zonedebt (eurobonds, or in this case “coron-

abonds”). In this he was joined byAustria,Finland and Germany. But on the esm hestood alone, insisting that countries thattappeditfornon-medicalspendinghadtoagree to economic reforms.

Italy and Portugal were incensed.Bothhave national debts of well over 100% ofgdp, and neither wants its budget picked

apartinthemidstofapandemic.Beforethenegotiations, Portugal’s prime ministercalledMrHoekstra’scriticism“disgusting”.Afterwards,hewonderedwhetheritwouldbe possible for the euro zone to continuewith all 19 members (“and I am talkingabouttheNetherlands”).

YetwhileHoekstrawascriticisedabroad,

hewas lauded at home.The Dutch,like theGermans,have a cultural aversion to debt,especiallywhen shared with those they donot trust. Hoekstra told a parliamentarycommittee that eurobonds are unaccept-able because the European Union“has nocentralauthoritythatcanforcecountriestoreform”. The euro crisis reinforced theDutch conviction that credit without con-ditionsisnotsolidaritybutirresponsibility.

Cynics note that the Netherlands faceselections next year,and that Mr HoekstrawillbevyingfortheleadershipofhisChris-tian Democratic party as well as compet-ing against the Liberal prime minister,Mark Rutte. Both parties must fend offchallengesfromEuroscepticoutfits.YetMrHoekstra’s stance is popular because itreflects beliefs he shareswith most Dutchvoters.“Dutchforeignpolicyisoftendeeplymoralising: because we are wealthy weknowthetruth,andwearegoingtotellyouhow to reform,”says Rem Korteweg of theClingendael Institute,aDutchthink-tank.

OlafScholz,Germany’sfinanceminister,may be secretly grateful for Mr Hoekstra’sstubbornness,whichallowshimtoplaytherole of peacemaker.But as the response tocovid-19 evolves,other forms of collectivespending will be on the table,notably at avideoconferenceofeuleadersonApril23rd.Self-righteousness is not winning theNetherlandsmanyfriends.¦

©TheEconomistNewspaperLimited

● BLOCKING IMMIGRATION

THE NEWYORKTIMESWashington, April 22

PRESIDENTTRUMPSAIDonTuesdaythathewouldorderatemporaryhaltinissuinggreencardstopreventpeoplefromimmi-gratingtotheUnitedStates,buthebackedaway from plans to suspend guest workerprograms afterbusiness groups explodedin anger at the threat of losing access toforeign labour.

The new executive order banningimmigration to the United Stateswill last30 to 90 days with the chance of renewaland apply narrowly to those seeking per-manent immigration status, a senioradministration official said.

Other workers such as those on so-called H1-B visas would be covered in aseparate action,the official said.

Trump, whose administration hasfaced intense criticism in recent monthsfor his handling of the coronavirus crisis,abruptly sought to change the subjectTuesday night by resuming his assault onimmigration,which animated his 2016campaignandbecameoneofthedefiningissues of his presidency.

He cast his decision to“suspend immi-gration,”whichhefirstannouncedonTwit-ter Monday night, as a move to protectAmerican jobs.But it comes as the UnitedStates economy sheds its work force at arecord rate and when few employers arereachingoutforworkersathomeorabroad.More than 22 millionAmericans have losttheir jobs in the economic devastationcausedbythevirusandeffortstocontainit.

Trump said that his order would ini-

tially be in effect for 60 days, but that hemight extend it“based on economic con-ditions at the time.”

“We can do that at a little bit differenttime if we want,”he said of a second exec-utive order that could further restrictimmigration. While numerous studieshave concluded that immigration has anoverall positive effect on the Americanwork force and wages for workers, Mr.Trump ignored that research on Tuesday,insisting that American citizens who had

lost their jobs in recent weeks should nothavetocompetewithforeignerswhentheeconomyreopens.

“By pausing immigration,we will helpputunemployedAmericansfirstinlineforjobs as America reopens. So important,”thepresidentsaid.“Itwouldbewrongandunjust for Americans laid off by the virusto be replaced with new immigrant laborflown in from abroad.We must first takecare of theAmericanworker.”

(With inputs fromReuters)

ASSOCIATED PRESSWashington, April 22

CONGRESSISSPRINTINGtoapprovethenext coronavirus aid package,a $483 bil-lion deal backed by the White House toreplenish a small-business payroll fundandpumpmoremoneyintohospitalsandtesting programs.

President Donald Trump is urgingswift passage this week. The Senateapproved the bill Tuesday and the Houseplanned avote onThursday.

The bipartisan bill, Washington'sfourth in response to the crisis, is notexpected to be the last as lawmakers takeunprecedentedstepstoconfrontthevirusand prop up communities nationwideamid the health crisis.

Most of the funding, $331 billion,wouldgotoboostasmall-businesspayrollloan program that ran out of money lastweek. There would be $100 billion forhealth care,with $75 billion to hospitals

and $25 billion to boost testing for thevirus,akeystepinbuildingtheconfidencerequiredtoreopenstateeconomies.Thereis $60 billion for a small-business loansand grants.

What started as a Trump administra-tioneffortwithRepublicanstobolsterthegovernment’s small-business PaycheckProtection Program quickly doubled insize, second only to the nearly $2 trillioncoronavirus rescue package that becamelawlast month.

Global CEOs see U-shapedrecession, shows survey

Workers such asthose on so-called H1-Bvisaswould be coveredin a separate action

Zoom raises itsencryption levelwith upgraded appZOOMVIDEO COMMUNICATIONSsaid onWednesdayitwas upgradingthe encryption features on itsvideoconferencing app to bettersafeguardmeeting data and offerprotectionagainst tampering.The newversion ofthe app,Zoom 5.0,will releasewithintheweek.

Netflix toraise$1billiontofundoriginal contentNETFLIXSAID ON Wednesdayitplans to raise about $1 billion in debtto beef up original content,a dayafterthe streaming pioneerdoubled itsown projections fornewcustomers asstuck-at-home users binged onmovies and shows.Shares of thecompanywere down 3% at $420 inmorning trade after it also forecast aweakersecond half of theyearwhenshelter-in-place orders are lifted.

WorldBankseesrecord20%dropinremittancesGLOBAL REMITTANCE FLOWS willtumble 20% this year as thepandemic drags the economythrough a recession,according to theWorld Bank.Transfers to low- andmiddle-income countries fromworkers abroad probablywill plungeby a fifth to $445 billion, thedevelopment institution said.

Quick

View

Hackers targettopofficials atWorldHealthOrganization

InternationalFINANCIALEXPRESS8 WWW.FINANCIALEXPRESS.COM

THURSDAY, APRIL 23, 2020

REUTERSApril 22

A SECONDWAVE of the coronavirus isexpectedtohittheUnitedStatesnextwin-terand could strike much harderthan thefirst because it would likely arrive at thestart of influenza season, the director ofthe Centers for Disease Control and Pre-ventionwarned onTuesday.

“There’sapossibilitythattheassaultofthe virus on our nation next winter willactually be even more difficult than theone we just went through,” CDC directorRobert Redfield told theWashington Postin an interview.

As the current outbreak continues totaper off, as shown by a recent decline inhospitalizationratesandotherindicators,authorities need to prepare fora probableresurgence in the months ahead.

“We’re going to have the flu epidemicandthecoronavirusepidemicatthesametime,”hesaid,andthecombinationwouldput even greater strain on the nation’shealthcaresystemthanthefirstoutbreak.

Trump touts safety ofstates reopening

President Donald Trump on Wednes-dayapplaudedstepstakenbyahandfulofRepublican-led US states to startreopening their economies despite warn-ings of a potential fresh surge ofcoronavirus infections.

Aboutahalfdozen,mostlysouthernUSstates, including Georgia, South Carolinaand Tennessee led by Republican gover-nors, are loosening stay-at-home guide-lines, allowing some non-essential busi-

nessestoreopenandhopingtorevivetheirstate economies.

Trump, a Republican seeking re-elec-tion on November 3, gave these states ashowofsupportonTwitteronWednesday.

“States are safely coming back. OurCountry is starting to OPEN FOR BUSI-NESSagain.Specialcareis,andalwayswillbe, given to our beloved seniors (exceptme!),”wroteTrump,who is 73.

Greg Abbott of Texas on Wednesdaybecame the latest Republican governorto signal his intention to start liftingrestrictions. Abbott said he wouldannounce a plan next week to broadlyreopen the state’s economy during thefirstweek of May.

REUTERSSingapore, April 22

GLOBALBUSINESSLEADERSareprepar-ing for a drawn-out U-shaped recessiondue to the impact of coronavirus andmany fear their companies won’t survivethe pandemic, a survey of thousands ofchief executives showed onWednesday.

The pandemic sweeping theworld haskilled nearly 180,000 people, routedfinancial markets and could trigger theworst economic meltdown since the1930s Great Depression.

Around 60% of chief executives arepreparingforaU-shapedrecovery-a longperiodbetweenrecessionandanupturn-compared with 22% who predict a dou-ble-diprecession,accordingtoanApril15-19pollof3,534chiefexecutivesfrom109countries conducted by YPO, a businessleadership network.

The survey found that 11% of chief

executives see coronavirus as a risk to thesurvivaloftheirfirm,whileafurther40%saythe pandemic poses a severe threat.

“We have not seen a crisis like this foroverahundredyears,andsomehouseholdnames will not survive,” said Glenn Keys,executive chairman of Aspen Medical, aSydney-based health services firm andYPO member.

SELECTIONSFROM

BLOOMBERGApril 22

TOP OFFICIALS AT the World HealthOrganization are being targeted by hack-ers as theywork on the global response tothe coronavirus pandemic.

The WHO’s security team has seen anincreasing number of attempted cyber-attacks on the officials since mid-March,accordingtotheorganization’schiefinfor-mation officer, Bernardo Mariano.WHOitself hasn’t been hacked, but employeepasswordshaveleakedthroughotherweb-sites,he said.

In an interviewTuesday,Mariano saidthat some of the attacks had been perpe-trated bysuspected nation-state hackers.

ThetargetshaveincludedWHODirec-tor General Tedros Adhanom Ghebreye-sus,aswellasBruceAylward,aseniorWHOenvoy who led a Covid-19 response teamin China.

In addition, there had also been arecent “sustained attempt” to hack intocomputers operated by a team of fourWHOemployeesinSouthKorea,aswellasanincidentlastweektargetingstaffattheorganization’sGenevaheadquarters,Mar-iano said.

The hackers“are looking for the high-esttargets—thekeyofficialsinvolvedwiththe Covid-19work,”Mariano said.

EUROPEA EURO ROW

The rest of the euro zone is getting fed up

TheDutchgrumbleover Europe's

coronavirus cheque

❝ ❝

TWOCRISESGreta Thunberg, teen climate activist

Today isEarthDayandthat remindsus thatclimateandtheenvironmental emergency is still ongoingandweneedto tackle thecoronapandemic ... at the sametimeaswetackleclimate&environmental emergency,becauseweneedto tackle twocrisesatonce

Trumphaltsnewgreencards,backsoffwiderbanonvisas

Pfizer,BioNTech vaccinecleared for human tests

Chinese techgiants offerbookings forCovid-19 testsREUTERSShanghai, April 22

CHINESEE-COMMERCEGIANTSAlibabaand JD have each launched booking ser-vices forCovid-19 tests.

The services have been launched asChina accelerates testing for the illnessand the city of Wuhan, the initial epicen-tre of the outbreak, opens up from lock-down. Users searching for“CoronavirusNucleic Acid Test” in Taobao or Tmall,Alibaba’s two main e-commerce sites,aredirected to a page offering appointmentsat nearbysites.

Prices depend on the city,with tests inShanghai costing 180 yuan ($25.42) andtests in Beijing costing 258yuan.

BLOOMBERGApril 22

PFIZER AND BIONTECH securedapproval forGermany’s first human clin-ical trials of a possible coronavirus vac-cine, entering a global race to develop adefense against the pandemic.

Regulatorsgavethegreenlighttotestthecompanies’ proposed vaccine on 200healthypeopleaged18to55years inafirststage, and on additional high-risk candi-datesinasecondstage,accordingtoastate-ment Wednesday.Shares of Mainz-basedBioNTechroseasmuchas63%inFrankfurt.

The companies said they expect to winapprovalfortestingintheUSshortly.Pfizersharesrose3.6%inpremarkettrading.

“It’sagoodsignthatthedevelopmentofvaccinesinGermanyisatastageatwhichwecanbeginwiththefirsttrials,”HealthMinis-terJensSpahntoldreportersinBerlin.

“At the same time, it’s important torememberthat itwill take months before avaccinewill be fullytested and can actuallybeavailable.”

As worldwide coronavirus cases top 2.5million, governments, investors and thepublicarekeenlywatchingtheracetodelivervaccines that could prevent future infec-tions.Dozensofcandidatesarebeingdevel-opedinnationsfromtheUStoChina,withatleast three in human testing,according totheWorldHealthOrganization.

TheyarefromCanSinoBiologics.andtheBeijing Institute of Biotechnology; InovioPharmaceuticals.; and Moderna Inc.along

with the National Institute of Allergy andInfectiousDiseases.

HumantrialsofapotentialvaccinebeingdevelopedbyOxfordUniversityresearchersare set to begin Thursday,according to theUKgovernment.

BioNTechalsoexpectstotest itsvaccineprogram in China,where it’s collaboratingwith Fosun Pharma.The companies didn’tsaywhenavaccinemaybeavailable.

VITALVIALS

❝ ❝

There’s a possibility thatthe assault of the virus onour nation nextwinterwillactually be even moredifficult than the onewejustwent through

—ROBERTREDFIELD, CDCDIRECTOR

■Vaccine tobe testedon200healthypeople aged18 to 55 years

■Thecompanies said theyexpecttowin approval for testing in theUS shortly

■Dozensofcandidates arebeingdeveloped fromUS toChina,withat least three in human testing

■Trials ofa potential vaccinebeingdevelopedbyOxford researcherswill beginThursday

US Congress set to pass $483-bnvirus aid as Trump eyes next deal

THE EUROPEAN UNION’S 27 lead-ers will be asked to consider a 2 tril-lion-euro ($2.2 trillion) plan for theregion’s post-pandemic recovery onThursday, according to a documentseen byBloombergNews.

The compromise proposal hasemergedfromanorth-southsquabbleoverhowtopayfortheeffectsofcoron-aviruslockdownsthatissettoplayouton a video conference. The proposalwouldpartiallyusetheEU’sseven-yearmulti-annualbudgetandalsoestablishanewfinancingmechanism,thedocu-mentsaid. —BLOOMBERG

EU commissioneyes $2.2-trillionvirus relief plan

CDC chief warns secondwave could be worse

Global cases 2.5million 178,800Deaths exceed

MAPPINGTHEVIRUS

The Chinese ambassador to the US called for

a “serious rethinking” of relations between the

world’s biggest economies in the face of

the global coronavirus pandemic

Amazonunlawfully increasedpricesof

numerousconsumergoods in thewakeofthe

Covid-19pandemic, in somecasesbymore than

500%, a class suit inCalifornia court alleges

Transfers to low- andmiddle-income countries

fromworkers abroad probablywill plunge by a

fifth to $445 billion, theWashington-based

development institution said in a report

onWednesday.

Europe’s data privacywatchdogswarned that

virus-tracking technologiesmust not be

allowed tomorph into dystopian snooping on

citizens.Technologies should be used to

“empower, rather than to control, stigmatize,

or repress individuals,” the EU group said

TheUSgovernment has awarded $7.2 billion in

contracts to fight the coronavirus, including one

thatwould pay a little-knownMassachusetts

biotech firmmore than its reported revenue for

the last three years combined

The Chinese government is ramping up efforts

to curb emerging social unrest in the aftermath

of the coronavirus outbreak, as the country

faces an economic downturn that could leave

millions of people unemployed

Swiss healthcare company Roche chief

executive officer Severin Schwan blasted

competitorswhose tests for potential immunity

to the coronavirus have been subject to

high-profile flops

An antibody analysis by the Geneva University

Hospitals suggests that 5.5% ofGeneva’s

population -- some 27,000 people --were

exposed to Covid-19 as ofApril 17

Americans’ fear of

job loss surges to 45-

year high

China’s coronavirus

handling aggravates

Europeandiplomats

‘Scary time’ for

Americanmiddle-class

as office jobs disappear

EUeyes $2.2 trillion plan

for recovery

Italy to double stimulus,

Spain to extend emergency

EuropeanCentral Bank

maydiscuss newhelp

for lenders

Pandemicmay set back

Europe 5G rollouts

❝❝

❝❝

DIGITALWAVERajanAnandan, MD, Sequoia Capital

Post Covid-19, digitalisation of companies is goingto accelerate dramatically aswe are alreadywitnessing innovativeways inwhich onlineeducation and telemedicine facilities are growing.

BANASREE PURKAYASTHA

DESRAJ, A FARMER in Alwar, Rajasthan,sellsmustardseeds,wheatandothergrainsat theBansurAnajMandi inAlwardistricteveryyear.But thisyear,withthe lockdownrestrictionsinthewakeoftheCovid-19pan-demic, Desraj started looking for otheroptions.That’swhenheheardaboutAgriB-azaar’se-mandiwhichallowedhimtoreachout to buyers through his mobile phonebypassing any intermediaries, comparepricesandthenexecuteadeal,allvirtually.

Withindays,hehadnegotiateddealsforthreetonnesofmustardseedsontheAgriB-azaar app,andwas looking to closemoredealsinthecomingweeks.Bestofall,hedidnothave torunaroundtogetvehicle clear-ances from local authorities.AgriBazaar’son-groundstaffpickeduphisproduceandtransportedittothebuyer’swarehouse,andthemoneywas credited to his account.“Iplantosellanother200quintalsofmustardseedsbesides500quintalsofwheatand100

quintals of guar seeds onAgriBazaar,”saysDesraj.“Ialsoplantobuyseeds forthenextsowingseasononthisapp.”

Even though harvesting, sale of farmproduce atmandis and otheragriculturalactivities have been exempted from lock-downrestrictions,farmersandbuyershavebeenfacingchallengesincarryingouttheiroperations. It is here that technologyhascomeupwithalternatives,whichcanmiti-gatefarmers’distresstoalargeextent.Fromprivate e-mandis to farm-to-fork startupsthatbuyfreshproduceinbulkfromfarmersto location tracking andgeo-fencing tech

platformsthathelpregulatethemovementoftrucksintomandis,eachofthemareplay-ing an important role in ensuring thatfamers get decent remuneration for theiryear-longefforts.

“Wehaveseena300%surgeinthenum-berof registrations fromfarmers andbuy-ers since Covid-19 lockdown,”saysAmithAgarwal,co-founderandCEO,AgriBazaar.“Our platform connects around 10,000tradersandprocessors,over100FarmerPro-ducerOrganisations(FPO)withitsnetworkofover2lakhfarmersacrossIndia.Theaver-agedealsizeis300tonnes.”

AgriBazaar operates across 16 states,withmaximumactivityinRajasthan,Mad-hyaPradesh,Punjab,Haryana,Maharashtra,Gujarat,WestBengal,andmostofthestatesin south India.“Wenever imagined socialdistancing and safetyof the Indian farmerwouldgetlinkedsocloselywithourbusinessmodel of electronic buying and selling offarmerproduce,”he adds.Till date,32,437auctions have been listed on the site,with`11,322 crore contract value traded andtransaction volume of 26,29854 metrictonnes,claims thewebsite.It has also inte-gratedNafedmillingauctioninitsapp.

Meanwhile,ride-hailingappOlahascol-laboratedwith thePunjabgovernment foreffective tracking andmanaging17 lakh-plus farmers’ produce and their vehiclemovement into mandis while followingsocial distancing norms. It has shared itstechnologycapabilities to provide a directchannel to pass authentic information tofarmers including distributing securitytravel passes digitally. Its technologyplat-form, Ola CONNECTS, has a centraliseddashboardwhich can track themovementof farmers alongwith theirvehicles in andaroundmandisenablingofficialstomanage

the flowof farmerswhen collecting theirproduce to prevent crowding.Says PranayJivrajka,co-founder,Ola,“All ofOla’s inno-vationsacrossAI,trackingtechnologies,allo-cationandflowmanagementarepartoftheCONNECTSplatform.”

VarunKhurana,co-founderandCEOofCrofarm,aGurgaon-based startupwhichsuppliesvegetables and fruits to small andmedium-sized retailers in Delhi-NCRdirectlyfromfarmers,saysitisgettingmorequeries from government horticultureagencies,FPOsaswellasindividualfarmerssincethelockdown.“Ourbuyersarealsonowrelyingonusmore.Earlier,ifaretailermadea `3,000-4,000 order a day, now it is`7,000,”hesays.Fruitsaccountfor40-45%of transactions invalue terms on theCro-farmapp,while 20%relatetoonion,potatoandtomato,and30%isgreenproduce.

AccordingtoKhurana,forfreshproducethereisaveryshortwindowforsaleasit isaperishable commodity. In the short term,the lockdownwill pose aproblem,he says.“At Azadpur mandi in Delhi which sawaround25,000 tonnes of produce comingineverydaybeforethelockdown,thenum-berofbuyershasgonedownasthenumberof incoming trucks is limited. So a lot offarmersarelookingatalternatives.However,startupsandmodernretailaccountforjust5%of buyers.As of now,90-95%of dealsstillhappenatthemandis,”saysKhurana.

It is this realisationperhaps that ledtheagriculture ministry to launch the KisanRathmobileapptohelpfarmersandtradersfindvehiclesformovementoffarmproduceduring the lockdown, ensuring seamlesssupply linkages between farmers, FPOs,APMCmandis and intra-state and inter-state buyers. Developed by the NationalInformatics Centre, the app brings 5 lakhtrucksand20,000tractorsontheplatform.

SUDHIRCHOWDHARY

REMOTEWORKING IS the newnormalthesedays,thousandsofpeopleare turn-ing to cloud-based collaboration andworkplace transformation tools to stayconnected.In a recent advisory,the gov-ernmenthas flaggedvideo conferencingsoftware Zoomasunsafe andvulnerabletocybercrimes.It isobviousthatsecurity,compliance andprivacyof userdata andinformationbecomes evenmore impor-tantduringthesetimes.

Lastmonth,GooglemadeitsadvancedGoogleMeetvideo-conferencingcapabil-itiesavailableatnocosttoallGSuiteandGSuite forEducation customersuntil Sep-tember 30, 2020 to ensure businesses,organisations,institutions,andeducatorscontinuetobesupportedduringthistime.

Recently,GoogleMeet surpassed a newmilestonewithmore than2millionnewusers connecting onGoogleMeet everyday,and theyare spendingover2billionminutestogetheror3,800yearsofsecuremeetingsinasingleday.

Google Meet deploys a range ofcounter-abuseprotectionfeatures,ensur-ingthesafetyofmeetings.MarkJohnston,headofsecurity,NetworkingandCollabo-ration Specialists,Google Cloud inAsia

Pacific,says,“Asmorebusinesses,organi-sations and educators are workingremotelyinthesetimes,wearedeployingmeasurestohelpthemstayconnectedandproductiveinasecureway.GoogleMeetisbuiltonGoogleCloud’s secure-by-designinfrastructure to help protect userdataand safeguard privacy. Google Meet’scounter-abuseandsecurityfeaturesareonby-default toensurerightprotections forusersandorganisations.”

●AGRI-TECH

FE BUREAU

THE UNITED STATES, China and Italy,amongotherdevelopedcountrieshavesuc-cessfully implementedAI-based robots athealth facilities tominimisehuman inter-ventionintreatingCovid-19patients.“Indiacanreplicatethesametoprovidesomereliefto its frontlinehealthcareworkers in theirbattleagainstcoronavirus,”saidRajeevKar-wal,founderchairmanofMilagrow,ahome-grownroboticsfirm.

All India Institute ofMedical Sciences,NewDelhi,has decided to deployAI-pow-eredrobotsfromMilagrowtohelpthehos-pital promotephysical distancingbetweenhealthworkers and coronavirus infectedpatients.TwoadvancedAI-powered robots—Milagrow iMap9 andHumanoid ELF—willbetestedintheadvancedCovid-19wardatAIIMS,Delhi.

Manufactured in India, theMilagrowiMap9isafloordisinfectingrobotthatcannavigateandsanitisethefloorswithoutany

human intervention.It can destroyCovidspores on floor surfaces using sodiumhypochlorite solution,as recommendedbyICMR. The robot moves aroundautonomously without falling, avoidingobstructionwhile planning its ownpath,guidedbyLIDARandadvancedSLAMtech-nology.It canalsodo zoning,virtual block-ingofavoidableareasandsequentialclean-ingofzonesbasedonspecificneeds.

TheMilagrowHumanoid ELFenablesdoctorstomonitorandinteractwithconta-giousCovid-19patients remotelywithnoperson-to-person contact,therebysignifi-cantlyreducingthetransmissionrisk.Boredpatientsinisolationwardscanalsointeractwith their relatives through this robot.TheHumanoid ELF can navigate around theward independentlyand record the activi-ties in high-definition video and audio.Offering8hoursofbatterylife,it cantravelabout 2.9 km per hour, is 92 cm tall, hasmorethansixtysensors,one3DandoneHDcamera,anda10.1-inchdisplayscreen.Theadvanced humanoid features eyes withEmotion,OpenAPIforfurtherdevelopmentand customisation.Both the robots comewithautochargingfeature.

Robots to therescue

SUDHIR CHOWDHARY

EVERYEVENING,ITisquiteaspectacleinthiswriter’splaceof stay.Visiblyboredbytheday-longhomeconfinement,peopleappearon their terraces and,armedwithmobile phones in theirhands,theybeginto click their immediate scenarios—thesky, setting sun, fast-moving clouds,plants,andletusnotforget,plentyofself-ies.Literally, it’s a jam-packedphoto ses-sionatthattimeoftheday.

Capturingastill imageorrecordingaspecialmoment is among the bestwaystopreserve amemory.However,to trulyenjoy the experience, the quality of thedigital image is paramount, and so, it isimportant to get yourself adevicewithanamazingcam-era. Also, with the entirecountry on lockdown, cam-erashavebecomeapartofthedaily lifestyle as people arebeatingtheirlockdownbluesby clicking their pictures,makingmakeup tutorials,orposting foodvideos on socialmediasites.Here’sourpickofsomeofthedecent-perform-ing camera phones in therangeof`10,000andbelow.

Infinix Hot 8 (`7,999)Hot 8 captures pretty

decent imageswith a 13MPf1.8 AI-enabled triple rearcamera and 8MP front cam-era with a dedicated LEDSelfieFlashthatenhancesthe

qualityofselfiesandvideo-calls.Therearcamera framework is equippedwith a2MP depth and low-light sensor withQUADLEDFlashandAutoSceneDetec-tionin8modes.Toaddanextrabitoffunandquirk toconversationswithfriends,the phone also offersmotion detectingARShotsandaWideSelfiemode.Inaddi-tion, it has fingerprint and face unlockfeatures.

Xiaomi RedmiNote 8 (`10,999)TheRedmiNote 8 comeswith a new

AuraFluiddesign,thatisstylishlycraftedtosuitthemodernIndiancustomer.The2.5Dreflectiveglassback isdistinctandgives it a bold finish.It is among the few

devices to have a 48MPquadrear camera array that sup-ports 4Kvideo recording andelectronicimagestabilisation.Its48MPultra-highresolution

sensor is equipped to capture beautifulimageswitheachdetailrichlyenhanced.Everypartoftheimageiscapturedsharpand clear. Further, it also has a 13MPfront camerawith palm shutter func-tionalityforaddedconvenience.

Realme 3i (`8,499)The realme 3i’s striking aesthetics

catch your attention before anythingelse. It features a diamond-cut textureand pearl lustre tinting detailingwhichgiveitauniquelook.Equippedwithdual13MP+ 2MP rear cameras and a 13MPbeauty front sensor, this phone isarguably one of the best picks in thebelow`10,000 price band.The dual AIrear camera system isequippedwith an f/1.8-largeaperture.The primarycameraalso comes with the supernightscape feature which

facilitates crystal clear photos ofnight scenery. Features such as theChroma Boost andAI Engine recognisethe different scenes you are clickingpictures in and work to ensure thatyour photos are injectedwith the best-suitedcolours.

VivoY11 (`9,099)For an all-round offeringwith excel-

lent camera technology, consider theVivoY11.Itfeaturesdual13MPand2MPrear cameras and has a modest 8MPfront shooter.Camera features includeAI Face Beauty, Portrait Bokeh, Time-lapse andmore. It also has a rear flashto ensure crisp shots in low-light set-

tings. Y11 runs on a 12nmocta-core processor thatboasts 3GB RAM and 32GBstorage space.YourY11 canhandlewhateveryouthrowatitwithease.

Nokia 2.3 (`7,199)Nokia 2.3 looks good and

feels strong. It is powered bya 2GHz quad-coreMediaTekHelioA22 (MT6761) proces-sor that features four coresclocked at 2GHz. It hasdual 13MP and 2MP rearshooters backed byAI Imag-ing that optimises the shotin real-time.It also featuresa5MP front camera thatallows you to click clear self-ies and is used for biometricfaceunlock.

●MEETSAFELY

● ROBOTS & HEALTHCARE

Stay connected and productive in a secureway

Private e-mandis, farm-to-fork startups and locationtracking & geo-fencingtech platforms are helpingfarmers sell their produceamidst the lockdown

AIIMS Delhi to deployMilagrow robots at itsadvanced COVID-19ward

HowGoogleMeet helpskeep your videoconferences protected

Harvestingbenefits of tech at themandi

FINANCIALEXPRESS9 WWW.FINANCIALEXPRESS.COM

●CAMERAPHONES

Shoot like a prowith thesemobiles

Gadgets

eFETHURSDAY, APRIL 23, 2020

Telemedicine getsbooster doseTHEAPOLLOHOSPITALSGrouphasannounced its support to the initiativebytheMedicalCouncil of India (MCI) andTelemedicineSocietyof India (TSI) tosensitiseandtraindoctors indeployingtelehealthservicesonawidescale tomeet thehealthcareneedsof thepeopleduring theCovid-19crisis.Doctorsacross thecountryarebeingasked to jointhis initiativebyattending the trainingmoduleandupskilling themselves inoffering telehealthservices topatients.Thiswill solve theproblemofaccessibilitytoqualityclinical careandensurecontinuumofcare topatients.Over2,500doctorsacross theApolloHospitalsGroupwill beparticipating intheonlineTelehealthorientationprogramme,givingaboost to thegroup’sefforts inempoweringhealthcarepractitioners toeffectivelydeliverremotehealthcare.

SangitaReddy,jointmanagingdirector,ApolloHospitalsGroupsaid,“Wewereearlyadoptersandmostofourdoctorsuse telemedicinewithexcellentclinical outcomes.TheCovid-19crisisandthe resultant lockdownwithrestrictionsontravelhas resulted inanincreaseddemandfortelemedicineservicesand in response to this,theministryofhealth&familywelfareformallynotifiedanamendment to theMCIActbyinstituting theTelemedicinePracticeGuidelines.Following this,ChairmanBoardofGovernors (ofsupersededMCI) requestedTSI to train500,000doctorswithinamonth.”

IITRoorkeesupportsskills trainingINANEFFORTtoupskill theyouthandpromotee-learningduring theCovid-19lockdown,IITRoorkeehas launchedanadvancedcertificationcourseonDeepLearningatCloudxlab.com.It follows thesigningofMoUbetweenIITRoorkeeandCloudxlab.com,aUS-baseded-techcompany,forofferingaseriesof instruc-tor-ledaswell as self-pacedexecutiveonlinecourses.“This is thebest timefortheyouthaswell asothers toupskillthemselves.This initiativewill beattract-ive foruserswhoaimtoexcel in thetechnical field,”saidAjitKChaturvedi,director,IITRoorkee.Thecourse is anewaddition toahostofpre-existingcoursessuchasArtificial Intelligence,MachineLearning,DataScienceandmanymore.Itwill bedeliveredbythe facultyof IITRoorkeeandexperts fromindustry.

Tech

Bytes

❝ ❝We have seen a 300%surge in the number ofregistrations by farmers &buyers since the lockdown.

—AMITHAGARWAL,

CO-FOUNDER &CEO,AGRIBAZAAR

❝ ❝Government horticultureagencies, FPOs aswell asindividual farmers areshowing interest.

—VARUNKHURANA,

CO-FOUNDER &CEO, CROFARM

RULESTOMEET■ External participants arebarred from joining themeetingmore than 15minutesin advance in order to limit anybrute force attack

■Any external participantwhowants to joinmust be on thecalendar invite. Else the hostwill be asked to approve anyexternal party joining

■Onlymeeting creators andcalendar owners canmute orremove other participants

■Students can’t allow externalparticipants to join via video,and external participants can’tjoin before the instructor

■ Meeting participants can’trejoin nicknamedmeetingsafter final participant has left

Sangita Reddy, jointmanagingdirector,Apollo Hospitals

● SHARE SALE

FE BUREAUMumbai, April 22

KOTAK MAHINDRA BANK (KMB) onWednesday said its board has approved aproposal to raise capital through a freshissue of 6.5 crore shares.AtWednesday’sclosing price of `1,160.65,the size of theissueworks out to be `7,544 crore.Afterthe fundraising, the promoter’s stake inthebankwill fall from30%to29%.

“The board has accorded its approvalfor raising of capital by way of issue ofequity shares, by the bank for up to6,50,00,000 (six crore and fifty lakh)equity shares of `5 (five) each, through aprivateplacement,follow-onpublicoffer-ing(FPO),qualifiedinstitutionsplacement(QIP) or a combination thereof,asmaybeconsidered appropriate, subject to share-holders’approval andgovernmental/reg-ulatory/ statutoryapprovals and require-ments, as applicable,” KMB said in anotificationto thestockexchanges.

Analysts tracking the sector said thefundraisingisaimedmainlyatreducingthepromoter’sstakeinthebank.KajalGandhi,analystatICICIDirect,said,“Thesharesaleismainlyforreducingpromoterstake.Itwillalsohelpbringinconfidencecapital.”

Confidence capital refers to moneyraisedbyanentitytoreassureprospectiveinvestorsabout its financialhealth.WhileKMBisadequatelycapitalised,themoneyraised through the sale of shareswill fur-ther calm investors whomay have beenworried about somesegments of its busi-ness suchas theunsecuredretail book.

At theendofDecember2019,thebankhad a capital adequacy ratio (CAR) of18.21%againsttheregulatoryrequirementof11.075%.KMB’stier1ratiowas17.7%.

Theyear2020hassofarbeenatoughoneforstocksof India’sprivatebanks,butKMB

hasfaredatadbetterthanitspeers.TheBankNifty,comprisedmostlyofprivatebanks,hasfallen38.6%sincethebeginningofthecal-endaryear,whileKMBhaslost31%.

Markets have taken a favourable viewof the bank’s decision to raise capital at atimeofdisruptioncausedbytheoutbreakof Covid-19 as firms with larger cashreserveswill be better poised to tide overthe crisis. Investment bankers say in theaftermathoftheoutbreak,investorscom-ing to India would be looking at theirinvestmentsfromalong-termperspectiveandsubscriberstoKMB’sissuearelikelytotakeasimilarview.

On February 18, the Reserve Bank ofIndia (RBI) had allowedKMBa six-monthtimeline to reducepromoter shareholdingto26%.At the endofDecember,promoterUdayKotakhelda29.96%stakeinthebank.

Afterthesix-monthperiod,thepromoterwill not buy any additional shares of thebank till their stakedrops to15%.“There-after,the promoterswill not purchase anyfurtherpaidupvoting equityshares of thebanktillthepercentageofpromoters’share-holding reaches 15%ofPUVESC (paid-upvoting equity share capital) of theBankorsuchhigherpercentageasmaybepermittedbyRBIfromtimetotime,”KMBhadtoldtheexchangesonJanuary30.

PRESSTRUSTOF INDIAMumbai, April 22

THE RUPEE ON Wednesday recoveredfrom record low levels to settle higher by15paiseat76.68(provisional)againstthedollar following gains in domestic stocksand some weakness in the greenbackagainstglobal currencies.

The rupee opened weak at 76.86 atthe interbank forexmarket and then fellfurther to an all-time low of 76.88 dur-ing the day.

Later, the domestic unit recovered thelostgroundinlinewithsurgingstockmar-ketsandfinallysettledat76.68,higherby15paiseoverits lastcloseof76.83againstthedollar.

Indian stocks were trading higherwhile the dollar losing some groundagainst the euro and the pound in Euro-peantradestrengthenedthe rupee.

Brentcrudedropped8%to$17.78perbarrelwhileoilforIndianbasketalsoeasedby 0.68% to $20.42 per barrel in earlytradewhichsupported the local currency.

“Dollar/rupee spot breached freshrecord high of 76.90, however, it didn'tsustain and fell on dollar selling ahead oftheFacebookandReliancedeal.Facebookplans to invest nearly $5.7 billion, themoneywill hit forexmarket in trancheseitherendofthismonthorsometimenextmonth,”Rahul Gupta, head of research-currency at EmkayGlobal Financial Ser-vices, said. Gupta, however, noted thatglobalmarket is still risk-averse amid thecoronaviruspandemic.

ANKURMISHRAMumbai, April 22

STATE BANK OF India (SBI) and Bank ofBaroda (BoB), the top two state-runlenders, have so far disbursed around`1,600 crore in the form of Covid-19emergencycredit,sources toldFE.

“SBIhasdisbursedatleast`1,000croretill now,” a source told FE. BoB executivedirectorMurali Ramaswami also said thebankhas sanctioned`606 crore to 4,598borrowers under Covid-19 emergencycredit line tillApril19.

Majority of public-sector banks hadlastmonth announced emergency creditforborrowersamid thecoronascare.

SBIwas the first to announce an emer-

gencycreditlineforitsborrowers.Inacircu-lar,thebanksaidadditionalliquidityfacilityCovid-19emergencycreditlinewillprovidefundsupto`200croreandwillbeavailabletill June2020.SBIofferedloansataninter-estrateof7.25%foratenureof12months.

Theemergencycredit fromSBIisopento all standard accounts except thosewhich have not been classified as specialmentionaccounts(SMAs)asonMarch16.SMAs are those accounts in which bor-rowers have not paid till 90 days. An

account is classified as a non-performingasset (NPA)after90daysofnon-payment.

In a similarmanner,BoB onMarch25hadsetupanemergencycredit line topro-vide funds to its existingmicro,small andmediumenterprises (MSMEs) and corpo-rateborrowersimpactedbytheoutbreakofCovid-19. While the rate of interest forMSMEborrowerswas linked to the bank’srepo-linkedlendingrateof8%,theloanstocorporateborrowerswereofferedat aone-yearMCLRwithoutthestandardpremium.Thebank’sone-yearMCLRiscurrently8%.

Experts saymore borrowers are likelytolineupforemergencycreditfrombanksasmanybusinesseswillbehitbytheslumpindemandandzerofootfall inthemarketin thewakeof thepandemic.

Rupee recoversfrom record lowto end at 76.68

Covid-19 emergency credit: SBI disburses`1,000 crore,BoB sanctions `606 crore

FE BUREAUMumbai, April 22

DESPITEWITNESSINGREDEMPTIONSof`1.94lakhfromdebt-orientedschemesinMarch, themutual fund (MF) industry isestimated to have witnessed inflows of`1 lakhcrore inApril so far.

DatafromAssociationofMutualFundin India (Amfi) showed that inMarch,theindustryhad seen outflows of `2.12 lakhcrore—thebiggestdeclinesinceSeptem-ber2018.

Market participants say typicallyredemptionsfromthedebtschemesoccurat the end of everyquarter as institutionssuchasbanksandcorporatesredeemtheirinvestments to pay for quarterly advancetaxes.However,thistimetheoutflowsweremuchsharpercomparedwiththepreviousfew quarters due to the overall concernaboutthenovelcoronaviruspandemic.

“Therewasaconcern that institutional

moneymaynot come inabigway inApril,buttherehasbeeninflowsintoliquidfunds,overnight funds andmoneymarket fundsinApriltothetuneofaround`1lakhcrore,”theCEOofaleadingfundhousesaid.

Market participants say in the cate-gories like liquid funds, overnight fundsand money market funds, 70% of theinvestors are institutions such as banksandcorporates,around20%arehighnet-worth individuals (HNIs) and remaining

10%areretail investors.InMarch,amongthe open-ended debt-oriented schemes,liquid funds saw the highest outflows at`1.10 lakh crore followed by ultra shortduration funds andmoneymarket fundswhich sawoutflows of `29,052.98 croreand`27,402.30crore,respectively.

“Banksareflushwithliquidityandtheyhave continued to invest in debtmutualfunds inApril,evensomecorporateshaveparked theirmoney in liquid andmoneymarketschemesinApril,”a fundmanagersaidonconditionofanonymity.

Apartfromdebtschemes,theMFindus-try also believes that there may be someslowdowninequityflowsasmanyinvestorshaveeitherstoppedtheirsystematicinvest-ment plans (SIPs) or have paused theirinvestments into equity funds. InMarch,equity schemes had seen net inflows of`11,722.74 crore—highest in the currentfinancial year.Even inflows through SIPsstoodat`8,641croreinMarch2020.

Equity schemes see `1L-cr inflow inApril

Analysts say fundraising isaimedmainly at cuttingpromoter stake in bank

MarketsFINANCIALEXPRESS10 WWW.FINANCIALEXPRESS.COM

THURSDAY, APRIL 23, 2020

FE BUREAUMumbai, April 22

MUTUAL FUNDS (MFs) are not worriedafteraDelhiHighCourtrulinggrantedpro-tectiontoIndiabullsHousingFinancefromanycoercive action if it failed tomakepay-mentstodebentureholders.

Sources in theMFindustrysaid Indiab-ullsHousingFinancehascontinuedtohon-our thepayments onmaturi-ties and they see no stress atthispointoftime.

“We had approached theDelhiHighCourt ongroundsofprincipleandnotasanout-comeofanyotherstress.Sinceourinflowshavebeenblockedbyaregulatoryinitiative,whyshould ouroutflows also notbe blocked,” an IndiabullsHousingFinancespokespersonsaid.

Data from Value Research show thattotal investments byMFs in debt papersissuedbyIndiabullsHousingFinancestandat`1,150crore as onMarch31.Accordingto the company,theycontinue topaytheirdebenture holders, including redeemingbondswhichmaturedonApril20.

OnMarch27,theReserveBankofIndia(RBI) had granted amoratoriumof threemonths on payment of all instalmentsfalling due betweenMarch 1 andMay31thisyear.Allcommercialbanks,cooperativebanks,all-India financial institutions andNBFCs have been permitted to offer bor-rowers amoratoriumon repayments.The

petitionfiledbyIndiabullsHousingFinance,which argued that it hadbecome impossi-ble to recover debts owed to it byvariousinstitutionsduetothelockdownandtheRBIcirculardatedMarch27.

Fundhouses such asHDFCMF,BarodaMF,NipponIndiaMF,PGIMMFandUTIMFhaveexposurestodebtpapersissuedbytheIndiabullsHousingFinance,showthedatafromValueResearch.

“Right now,this issuewillnot have any impact on ourportfolio asmost of thematu-ritiesinourfundsareinthesec-ondhalf of this calendaryearandnextyear.Inthepast,Indi-abulls Housing Finance hashonoured all the payments,whichincludeinterestandtheprincipal,sothereisnothingtoworry as of now,” head (fixed

income)ofaleadingfundhousesaidoncon-ditionofanonymity.ThisfundmanagerhasexposureinthedebtpapersissuedbyIndia-bullsHousingFinance.

The Indiabulls Housing Financespokespersonalso said,“Weare optimisticthatwith the announcement of targetedlong-termrepooperations(TLTROs)andtheinitialsignswearegetting,wewon’thavetodip intoour liquiditybuffers to service ourprincipalonbondsoranyotherinstrument.”

Indiabulls also said over the last 19months,includingMarch2020,“wearetheonly NBFC to have bought back our ownpaperofover`7,000croreandstillhavecon-tinuedtoremainthemostliquid”.

❝ ❝

RIL-FACEBOOKPARTNERSHIPSatish K Gupta, MD & CEO, Paytm Payments Bank

It (the partnership of RIL and Facebook) is quitewelcome. There is scope for everybody. Digitalpayments are so meagre at present that if themarket grows, everybodywill benefit from it.

Majority of PSBs had in March

announced emergency credit for

borrowers amid the corona scare

ANALYSTCORNER

Facebook’s investment toboost RIL’s digi initiatives

CREDIT SUISSE

FACEBOOK'S INVESTMENTVALUESJio Platforms at $65.95 billion. Thesocial networking major announcedan investment of `43,574 crore for a9.99%minority stake in Jio Platformsand valued Jio Platforms at an EVof`4,62,000 crore (or $65.95 billion at$/`: 70) on a pre-money basis (atad lower than our EV for Jio at$69 billion).The deal follows the restructuring

announced in October 2019whenReliance Industries (RIL) transferred`1,08,000 crore of debt from Jio tostandalone entity, leaving liabilities of~`64,000 crore (spectrum liabilitiesand capex creditors) at Jio.RIL had restructured its digital

business into one consolidatedwholly-owned subsidiary — JioPlatforms—whichwould host all thedigital initiatives of the firm, includingJio digital services (mobile,broadband), apps, tech capabilities(AI, Big Data, IoT, etc) andinvestments (like Den, Hathway, etc).

Facebook's investment into thisentitywill further RIL's digitalinitiatives. The announcementincludes commencement of apartnership among JioMart (platformof RIL's new commerce initiative),Reliance Retail andWhatsApp.Currently, new commerce is underthe purview of Reliance Retail andoutside of Jio Platforms.The partnershipwill entail

leveraging the messenger platformto facilitate new commercetransactions between a consumerand a kirana store.As of December 31, 2019, net debt

at the group stood at `1,53,100 croreandwith Facebook's investment, thisshould put RIL on course to be netdebt-free by March 2021.The subscriber base of Jio has

increased to 388 million now,implying net additions of 18 millionsubscribers in Q4FY20. The newadditions have been impacted due toreduced MNP (mobile numberportability) activity during thenationwide lockdown.

Maintain ‘buy’on RILwithtarget price of `1,530

CITI

JIO ONWEDNESDAY announced thesigning of a binding agreementwithFacebook for a 9.99% equity stake inJio Platforms (RIL’s wholly-ownedsubsidiarywhich houses its digitalinvestments and is also the holdingcompany of Jio) for an investment(all-cash) of `43,600 crore ($5.7 billionat the current exchange rate).This values Jio at a pre-money EVof`4,62,000 crore ($61 billion), which is~12% higher than the `4,11,800 crore(`695/share) valuewe ascribe to thebusiness in our SOTP.On the completion of the

transaction, Jio’s capital structurewould comprise ~`4,36,000 croreof equity and ~`26,000 crore of netdebt (the latter down from~`42,000 crore).Concurrentwith the investment,

Jio Platforms, Reliance Retail, andWhatsApp have also entered into acommercial agreement to furtherReliance Retail’s new commerceventure JioMart (still at pilot stage)usingWhatsApp and to support small

businesses onWhatsApp. As hasbeen previously communicated, a keyelement of RIL’s new commerce plansis to drive digitisation ofmom-and-pop retailers.While still early days,the broad reach thatWhatsAppenjoys in India could help towardsscaling up of this business.The transaction is subject to

regulatory and other approvals and isexpected to close in the next coupleofmonths. This is a positive not justfor the higher implied valuationfor Jio that it helps cement, especiallyin the context of the currentenvironment, but also for thepotential upside in valuations ofReliance Retail (whichwe value at`2,81,500 crore or `475/sharein our SOTP).Wemaintain 'buy' on RILwith a

target price of`1,530; RIL is also ourtop large-cap pick in the sector.Despite the refining business facingheadwinds, we expect RIL’sconsolidated Ebitda to grow at an18% CAGR over FY20-22E. RIL alsocontinues to remain a bigunderweight for both DMFs and FIIs.

KMB looks to raiseover`7,500 crore

PRESSTRUSTOF INDIANewDelhi, April 22

THEDEPOSITS IN JanDhanaccountssawa sudden surge in the firstweek of April,mainlybecauseofthecentralgovernmenttransferringmoneyintosuchaccounts tohelpbeneficiariesdealwiththedifficultiesduring theCovid-19 lockdown.

According to official data, the totaldeposits into the accounts opened underthe Pradhan Mantri Jan Dhan Yojana(PMJDY) increased to `1.28 lakh croreduring the week ended April 8 against`1.20 lakhcroreonApril1.

This is probably the biggest weeklyincrease indeposits of JanDhanaccountswitnessed in the recentpast.

As per the latest data, the deposits inabout 38.12 crore accounts stood at`1,27,748.43 crore on April 8, up from`1,19,680.86croreonApril1.Thedepositsstood at about `1.18 lakh crore onMarch25and`1.17lakhcroreonMarch4.

Under the Pradhan Mantri GaribKalyanpackageannouncedbythegovern-ment last month, `9,930 crorewas dis-bursed to 19.86 crore women Jan DhanaccountholdersasonApril13,2020.

Deposits in JanDhan a/cs surgein 1stweek ofApr

Crisil profit rises 15%to `88 cr in March qtrS&P-CONTROLLEDdomestic ratingagencyCrisilonWednesdayreporteda15%increase innet incometoa littleover`88croreonhealthygrowth intotal incomeforthefirstquarterendedMarch.ManagingdirectorandCEOAshuSuyashsaidconsolidatedincomefromoperationsrose2.9%to`427.8croreduringtheMarchquarterwhileconsolidatedtotalincomerose9.4%to`462.6crore.

HDFCBankdeploysmobileATMinKolkataHDFCBANKonWednesdaydeployedamobileATMinKolkatatoassistcusto-mersduringthelockdown.Everyday,themobileATMwillcover3-5locationsbetween10amand5pm.“Thelocationsfordeploymentarebeingidentifiedinconsultationwithall localmunicipalauthoritiesacrossKolkatacity,”thebanksaidinarelease.

IOBlaunchesspecial loanschemeforagri sectorINDIANOVERSEASBank(IOB)hasintroducedspecialcreditfacilitiesfortheagriculturesectorasareliefmea-sureforCovid-19.Underthescheme,validuptoJune30,workingcapitaldemandloanisavailabletoallexistingborrowersenjoyingcashcredit/ODforsectorssuchaspoultry,dairy,fisheriesandotheralliedactivities,andotherslikecoldstorage&ruralgodowns.

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Money Matters

Apr 22Apr 7

6.4156.223

The benchmarkyield rose due toselling pressure

0.015%

G-SEC

Apr 22Apr 3

76.20Inverted scale

76.67

The rupee appreciatedon global cues

0.22%

`/$

Apr 22Apr 3

1.0801

1.0876

The euro rose againstthe dollar

0.17%

C=/$

HCprotection to IndiabullsHousing Finance:MFs see noimmediate cause ofworry

At December end, promoter UdayKotak held a 29.96% stake in the bank

FE BUREAUMumbai,April 22

THE INDIAN EQUITYmarkets rallied onWednesdayassharesofRelianceIndustries(RIL) rose 10%after it said it had enteredintoabindingagreementwithFacebookfora stake in Jio Platforms.The rallywas alsosupportedbypositiveglobalcues.

Sensex,whichwasupby742.84pointsor 2.42%, closed at 31,379.55, whileNifty50crossedthecrucial9,000-markandendedthedayat9,187.3,up205.85pointsor2.29%.BarringHDFC,PowerGrid,L&Tand ONGC, all other firms on the Sensexendedthedayinthegreen.RILcontributed104pointstoNifty’s205.85-pointgain.

FPIsremainednetsellersonWednesday,pullingoutequitiesworth$173.27millionwhileDIIs bought equitiesworth$112.87million.Accordingtoexperts,giventhelock-downandtheuncertaintyofits impact,themarketsmaynothavefactoredinthedam-agethatwouldbedonetotheeconomy.Dal-tonCapitalAdvisors(India)directorURBhatsaid,“Themarkets are yet to factor in thepotential damage to corporate earnings iftheresumptionofnormaleconomicactivityis pushed beyond May 3. Moreover, theeconomywill not be able to springback tonormal immediatelyafter the lockdown ispartially lifted because of the pronounced

interlinkages in the supply chains acrossmanydistricts.”

Several financial services firmsmain-tained a ‘buy’ rating on RIL after theannouncement of its dealwith Facebook,which ownsWhatsapp and Instagram aswell.RelianceRetailandWhatsApptoohaveentered into a commercial agreement toboostRelianceRetail’snewcommercebusi-nesson JiomartplatformusingWhatsApp.Marketexpertshavesaidthedealreiteratesthe market’s perception that Jio hasunlockedvalueforRIL.AccordingtoareportbyMorganStanley,thestakesalecouldlowerReliance’s net debt by 12% and be 1.5%earningsaccretive.“Itcouldalsodriveamul-tiple re-rating asRILmultiples haveprevi-

ously re-rated 30%during balance sheetdeleveraging cycles,”MorganStanleysaid.SharesofRelianceIndustriesroseby9.83%duringWednesday’stradingsessiontocloseat `1,359 a piece on the Nifty. It added amarketcapitalisationof`80,000croredur-ingtheday’stradingsession.

Equity markets regained 80% of thelossestheywitnessedinthelasttwotradingsessions. The markets were trading onstrongvolumesaheadoftheweeklyoptionsexpiryonThursdaywith theF&Osegmentrecording a turnoverof `11.05 lakh croreagainst the six-month average of `14.42lakh crore.The cashmarket turnoverwas`52,469.95against thesix-monthaverageof`39,134crore.ThebiggestgainersontheNiftywere Zee Entertainment,RIL,AsianPaints, IndusIndBank andUPL,while thebiggest losers were ONGC,Vedanta, L&T,CiplaandPowerGrid.Sectorally,thebiggestgainerswereNiftyMedia,NiftyAuto,NiftyFMCG,NiftyBankandNiftyPrivateBank.

Siddhartha Khemka, head - retailresearch,MotilalOswal Financial Services,said: ‘Goingahead,themarketsarelikelytoremainvolatileandreacttoearnings,trendincoronavirus cases,oil priceandcurrencymovement alongwith global events.Anyannouncement from the government onthe economic stimuluspackage couldpro-videsomeinterimrelief.”

RIL-Facebook deal sends indices soaring

Data show total

investments by

MFs in debt papers

issued by Indiabulls

Housing Finance

stand at `1,150 cr

as on March 31

Sensex

30,856.14

31,379.55

Open Close

Intra-day, Apr 22

30,400

30,700

31,000

31,300

31,600

Facebook-RJiodeal: RJio couldbeMark’sWhatsAppmoment

Facebookwillbeissuedfreshequity shares and will get aboardpositiononJioPlatforms.Jio Platforms will retain`15,000 crore and use theremainingamounttoparesomeofitsabout`40,000croredebt.

RILspentalmost$50billion—mostly borrowedmoney—onJio,whoseentryin2016withfreecallsandcheapdataboughtabout a paradigm shift in themannerIndian telecomindus-try functionedwhich led somerivals to exit or merge.At theend of theDecember quarter,RILhadanoutstandingdebtof`3,06,851 crore. It also hadcash in hand of `1,53,719crore, bringing the net debtpositionto`1,53,132crore.

According to Credit Suisse,Facebook’s investment willaccelerateJio’sdigitalmonetisa-tion drive wherein RIL trans-ferred`1.08 lakh crore of debtfrom Jio to Jio Platforms. Jef-feries said that the transactionsuggests thatFacebookexpectsJio’s Ebitda todouble fromcur-rent levels.The transaction, itsaid,sets benchmarkvaluationforanyfuturelistingforJio.

The investment valued JioPlatforms among the top fivelisted companies in India bymarket capitalisation, withinjust three and half years oflaunchingcommercialservices.

RILhasbeenseekingstrate-gicpartnershipsacross itsbusi-nesseswhiletargetingtodelev-erage its balance sheet. It hasbeen talking to Saudi Aramcoforsaleofa20%stakeinitsoil-to-chemicalbusinessforanask-ingof$15billion.RILhassoldastakeinitsretail fuelventuretoBPPlcfor`7,000crore.

JioMart getsWhatsApp’s400-m-useredge

WhatsApp’sbusinessapp—WhatsApp Business — facili-tates communicationbetweencustomers and small busi-nesses. Small merchants areprofiled on the app and thelaunch of the payments busi-nesswouldgiveWhatsAppBusi-nessanedge,analystsbelieve.

JioMarthasbeenlookingtoprovide kiranaswith point ofsales terminals and also tech-nical support.At a later stage,analysts anticipate, JioMoneytoo could come into the equa-tionasalsothepaymentsbankthat Reliance Industries oper-ateswithStateBankof India.

To begin with JioMartmight operate as an O2O ini-tiativeasithasbeenconceived.However, analysts expect thismodelwouldmorphwithtimewith Reliance Retail’s ownstores also becoming part ofthe JioMartnetwork.

“Atsomestage,thesestoresmay stock not just food andgroceries but a range of othergoods including apparel,” aretail expert noted adding thestoresmaybe used as deliverypoints for goods orderedonline—onWhatsapp.Alargecustomer-base at JioMartwould allow Reliance Indus-triestocross-sellproductsandservices. For JioMart, the dealwill alsoensurebetterproductdiscoverybycustomersastheycan search for products onplatforms like Facebook andInstagramwhich is the usualnorm these days, said ArvindSinghal,CMDatTechnopak.

The partnership betweenReliance Retail Whatsapp -inkedonWednesda -andcouldmeanmorecompetitionforthelikes of BigBasket andGrofersand others like Amazon andFlipkartlookingtogetashareofthefoodandgroceriespie.How-ever,analystspointoutthesuc-cess of online grocers lies intheir ability to service ordersefficiently and also in theirrange andqualityofmerchan-disewhich not all local storesmaybeabletomatch.

FB, Jiowillcollaborate aswell as compete

Thiswillcontinueasbeforeand not get subsumed as partof the deal. Similarly, whileWhatsApp is waiting to getfinal clearances from the gov-ernment for itspaymentbusi-ness, Jio has one up and run-ning JioMoney.This will alsocontinueasbefore.

Since the deal between thetwo firms is not exclusive,

tomorrow Facebook is free toforge anykindof alliancewiththelikesofAmazonorFlipkarton the retail side. “The plat-forms remainopen... it is non-exclusiveanditisnotmeanttokeep anyone away,” Mohansaidwhenaskedspecificallyonsuchpossibilities.

According to Thakurwhilethearrangementinthepresentdeal is that Jiowill bring com-merce andWhatsApp commu-nication on the table, the twowill continue to function asindependent brands and com-petewherenecessary.“Itwillbecollaborationaswell as compe-tition.Therewillbethingswherewewill be directly competingwith each other in themarket,the entities are independentofeachother in every respect.Wehave our suite of products andservices,thesamewaythatFace-bookhas its own suite of prod-ucts and services and we aregoing tomake best use forourrespectivecompanies,"hesaid.

Newordinance:Seven-year jailfor attacks onhealthworkers

Ifthehealthworkerssustainserious injuries, the attackerswill face punishment up tosevenyearsinjailandfineof`5lakh. Investigations on theattacks will be wrapped up injust onemonth to expedite thecases. Meanwhile, followingmeeting of its representativeswithhomeministerAmit Shahthrough video conference onWednesday,theIndianMedicalAssociation (IMA) called off itsproposed‘Whitealert’and‘Blackday’protests thatwere sched-uledforApril22and23.

In view of the mountingattacks, the IMA had beendemanding that the govern-mentformulatealawtoprotecthealthworkers.“Healthworkerswhoaretryingtosavethecoun-try from this epidemic areunfortunatelyfacingattacks.Noincident ofviolence orharass-ment,against themwill be tol-erated.An ordinance has beenbroughtin,it’llbeimplementedafter President’s sanction,”Javadekarsaid.

Mamata saysCentre nothelpingwithtesting kits

TheICMR,shepointedout,suppliedthreetypesoftestkits— rapid testing kits, BGI RT-PCRkits,andantigenkits.“Therapid testing kits and BGI RT-PCRkitswerebothwithdrawnas per communication fromNational Institute of Choleraand Enteric Diseases onApril21.Antigen kits are not beingsupplied to hospitals in thestate so far,”saidBanerjee.

“Everyday,they(Centre)aretellinguswhat to do andwhatnot to do, sending people tolook intothe lawandordersit-uation andwhether lockdownis being imposed or not.Theyare sending people to find outwhether people in Bengal aregettingrationsorwhethertheyare being able to take a bath.They are also sending usstrongly-worded letters. Wecanalsosendthemletters.Butthat’s not the point.Our gov-ernment is doing the best itcan to stem the spread of thepandemic,”she said.

Her comments came a dayafter awar ofwords broke outbetweenthestateandtheCen-tre over the arrival of two cen-tral teams inKolkata.

Meanwhile, in an interviewtoThe IndianExpress, JagdeepDhankhar, Governor of WestBengal,raisedaredflagoverthehandlingoftheCOVID-19pan-demicinthestate.“Therearenotakers for theCOVID-19deathfiguresonaccountof the seriesof discrepancies by the stategovernment.Theconcernofthepoliticalparties,themedicalfra-ternity and citizens is wellpremised.The trust deficit onthiscountbetweenthegovern-mentandthemedicalfraternityasalsobetweenthegovernmentand the people has attractednational and global focus.Theconcept of Audit Committee,unheardofsofar,hasworsenedthesituation,”hesaid.

Healsotookacriticalviewofthe state’s critical public distri-bution systemduring the lockdown.“FromallovertheState,Ihave got worrisome inputsaboutPDSbeinghijackedpolit-ically,rationdealers being sub-jectedbyrulingpartyworkerstocoercivemechanismanddistri-bution takingplace in a politi-cised manner under tokenissuedbytheworkersoftherul-ingparty.Thishijackingisavery

poor reflection on the publicfunctionariesandtheywillhavetobeheldaccountable fortheirlapses, failures and inaction inofficialduties,”saidDhankhar.

Responding to these allega-tions,MayorofKolkataandstateurban development ministerFirhad Hakim said, “With allrespect, I challenge the hon-ourable governor to showmeasingle case where the TMC oranyoneattachedtothepartyhasdoneanycorruptioninregardtotherationingsystem.Inthehardlockdown situation, may betherewassomeproblemindis-tributionsystem.Butthatisnotcorruption.Aftergetting infor-mationfrompublic,theCMher-selftookstrictactionagainstthedepartment and the secretary.Thegovernment is tryinghardtonormalise the rationing sys-tem,”Hakimsaid.

Regarding the discrepan-cies in thenumberofCovid19deaths,Hakim said,“The gov-ernment has no intention tosuppress the facts.TheGover-nor is always in tunewith thevoice of opposition, especiallyBJP. The state government iscontinuously fighting againstCovid19 and theChiefMinis-terhashitthestreetsherselftospread awareness. The stategovernmentisdoingthisonitsown, without any help fromthecentre.And just seewhat istheGovernordoing?”

Sample testingshift: InMaha,private labsovertake govtfacilities

Officials pointed out thatMaharashtra has the largestprivate lab network in thecountry,with20ofatotalof87operational in thestate.

The surge comes after theSupremeCourtclarifiedonApril14 that testing at private labswould be free only forAyush-man Bharat beneficiaries andthose from weaker economicsections. It ruled that theCen-tre’spricecapof`4,500pertestwouldcontinueforothers.

Official figures show thatthe rise in testing at privatelabs has also resulted in anincreaseinpositivecasesbeingreported. In the last oneweek,theaveragetotalpositivecasesin the state stood at 5.30%oftotal samplestestedasagainst4.33%thepreviousweek.

In government labs, thisnumberstoodat6.46%forthelastweek and5.47%theweekbefore; in private labs, it was4.085% and 2.97%, respec-tively.Mappingtheshift,thefig-ures show that private labstestedanaverageof3,133sam-ples perdayover the last sevendays,comparedto2,175ingov-ernmentlabs.Anidenticaltrendwasreportedthepreviousweek,when private labs tested anaverage of 2,029 samples perday,asagainst1,898ingovern-mentfacilities.

Officialfiguresfromacrossthemonthpresentastarkcon-trast, and show the pace atwhich testing at private labshave gained ground inMaha-rashtra. On April 9, govern-ment labs tested 12,984 sam-ples,5,091more than privatelabs. The trend held over thenext week,with governmentlabs testing 25,283 samples,5,424more thanprivate labs.

The trend started shiftingsubsequentlyin theweeks thatfollowed,withtwodaysrecord-ingthemaximumgapbetweenthe two. On April 19, 4,241sampleswere tested in privatelabs,comparedto2,389ingov-ernment facilities. Tuesdaymarkedthenextbig jump.

Cash-strappedairlines ignoreorder to notsell tickets

SpiceJet, the nation’s sec-ond-biggest airline, and GoAirlines India,which has fur-loughed 90% of its staff, areselling tickets from May 16.Tickets weren’t available onthe websites of state-run AirIndia and AirAsia India, thelocal partner of Malaysia’sAirAsiaGroupBhd.

“We are working on that.Hopefully will find ways toresolve soon,”ArunKumar,theheadofIndia’sDirectorateGen-eral of Civil Aviation, said in atextmessagewhenaskedaboutthe sales. Vistara declined tocomment.Representatives atIndiGo,SpiceJetandGoAirdid-n’t immediately respond torequestsforcomments.

Airlinesaroundtheworldareusing ticket sales to generatecash flow as the coronavirus

pandemic brings travel to astandstill, drying up revenuesources. One of the world’sfastest-growing aviationmar-kets,Indiaisanotoriouslydiffi-cult place to operate as provin-cialtaxespushupfuelcostsandcut-throat competitionmeansairlines are often forced to selltickets below cost. Most wereoffering customers creditinsteadofrefundsforcancelledflightstogeneratecashforday-to-dayoperations.

—BLOOMBERG

Oyo cutssalary, sendsemployeeson leave

The decisions come at atimewhen the hospitality sec-tor is struggling amidst theCoronavirus pandemic.“Theyhavecertainlynotbeenaneasydecision for the leadershipteam to make. This crisis hasmade a deep impact on ourbusiness,”Kapoorsaid.

Theemployeessentonleavewillreceiveanex-gratiaamountequal to a total of 60%of theirfixed monthly salary and dis-bursed in two tranches inMayand June. The employees willcontinuetoreceivebenefitssuchas health insurance, parentalinsuranceincludingachancetorenew it at negotiated rates inMay and education allowanceforthosewithchildren.Oyosaidin case there is an“unforeseenmedical emergency,” the firmwill support its colleagues (senton leave) beyond the insuredamounts,iftheneedarises.

Earlier thismonth,OyohadplacedcertainemployeesoftheUSandotherselectglobalmar-ketsonfurloughs.

Oyo’s consolidated lossesincreasedto$335millionintheyear toMarch 2019 from$52

million in FY18 as expansioninto international markets,including key market Chinaentailed heavycosts.TheGur-gaon-basedcompanyremainedintheredinIndia—netlossesinthecountryalthoughnarrowedto14%ofrevenueinFY19from24%ofrevenueinFY18.

Since theWeWork debacle,start-ups have come underheightened investor scrutinyand portfolio companies havebeen asked to chase profitsrather thanvaluations,accord-ingtosectorexperts.

Indian start-ups areheavilybackedbyJapaneseandChineseinvestors led by SoftBank andAlibabarespectively,apartfromaclutchofotherinvestorsbasedoutofcountries like theUSandSouthAfrica.

Contigencymechanism:Voda Idea gets`1,530 cr fromVodafone Plc

“Vodafone Idea has madepaymentstothegovernmentofIndia in relation to itsAGR lia-bilities.UnderthetermsofCLM,Vodafone Group is obliged tomake payments to VodafoneIdeawhere amounts paid pur-suant to the contingent liabili-ties ofVodafone Idea exceededthoseof IdeaCellular.TheCLMtookeffectatcompletionofthemerger ofVodafone India andIdea cellular inAugust,2018,”thecompanysaid.

“VodafoneGrouphas accel-erated this payment toprovideVodafone Ideawith liquidity tomanage its operations,and tosupporttheapproximately300million Indian citizenswhoareVodafoneIdeacustomersaswellas the thousands of VodafoneIdea employees during this

phase of emergency healthmeasures,takenasaresultoftheCovid-19pandemic,”Vodafonesaidinastatement.

As reported earlier, Voda-fone Idea on Tuesday paidaround `1,367 crore to thedepartment of telecommuni-cations(DoT)towardsitslicencefeeandspectrumusagechargeforthe January-Marchquarter.Operators generally pay theirlicence fee and SUC to theDoTon a quarterly basis and thispaymentoftheJanuary-MarchperiodwassupposedtobepaidbetweenMarch 20-25.Whileotheroperators like BhartiAir-telandRelianceJiohadpaidontime,VodafoneIdeahadsoughtmore time from the govern-mentciting thedisruptiondueto coronavirus pandemic butthe government did not agreetomake anexception fora sin-gleoperator.Operatorspay8%of theiradjustedgross revenueas licence feewhile SUCrangesbetween3-5%.

The payment and the duesmadebyVodafoneIdeaonTues-day is different than theoneofAGR dues which is currentlybefore the Supreme court butnevertheless ithasdwindleditsreducingcashreserves.

Relief package2.0: Govt takeslonger to shapelarger response

Since then, numerous dis-cussions have taken placebetween the financeministryandstakeholders,includingvar-iousministries andNitiAayog.PrimeMinisterNarendraModiheld amarathonmeetingwithfinanceministerNirmalaSitha-raman onApril 16,which lentfurthercredence to thebuzzofanimminentstimuluspackage.TheOppositionhasbeenclam-

ouringforamassiveimmediatepackage to address the hard-shipstothepooranddisadvan-taged and millions beingdeprivedofworkandlivelihood.

Still, the succour isyet to beextended,amid fresh specula-tions that the governmentmightbestitchingtogethersev-eralproposals tocoverasmanysectors as possible when itdeclaresitsessentiallyfirsteco-nomicpackage.

Official sources have indi-cated that the total fiscal inter-vention couldbe to the tuneof3-4% of GDP (or `6-8 lakhcrore). This will include manyroundsofmeasures to respondto the evolving situation.NitiAayoghasprojectedtheneedforanevenhigherfiscalstimulusof`10 lakh crore, includingincomeassistance to the poor,equity support to corporateIndia,absorptionofaportionofMSMEbadloansandincreasedhealthcarespending.

Of course, India is amongthelastsetofnationstofacetheCovid-19 outbreak, but thelonger it takes to shape its eco-nomic response,the costlier itsinterventionswillbe,accordingto industry executives.This isbecausedelayedresponsesgivecompetitorsanedge,especiallyintheexportmarket,anddrivescash-strapped businesses intobankruptcy.Already,competi-tors-includingChina,Vietnam,Bangladesh, Indonesia andMalaysia,announcedaseriesoffiscalpackages-someupto3%of GDP - by the first week ofApril.Someof themhave doneit in tranches— Indonesia andMalaysia, for instance, haverolled out at least three stimu-luspackageseach.

Theimmediate,biggestcon-cern among various cash-strapped Indian industries —especiallylabour-intensiveoneslike garments and leather,andeven MSMEs — is how to pay

wages totheworkerswhenfac-tories are shut,sales disruptedand most of the orders can-celled.Without the promise ofanimmediaterelief,theywillbeforced to layoff in large num-bers.Already,theFIEOlastweekwarnedof15million job lossesifthegovernmentdidn’tstepinwith relief swiftly. Havingexhaustedcashreservesinpay-ingtheMarchsalarytoemploy-ees, the garment industry, thebiggest employerafteragricul-ture,isunsureifitwillbeabletopay any longer without assis-tance.Liquiditymaybeinabun-dance but credit flow tomostsmall andmediumbusinesses,which are in greater need ofloans than the large ones, stillremains inadequate, in theabsence of regulatory forbear-ance on bad loans or officialguaranteeonadvances.

The governmentmayhavefacilitatedopeningupofmanu-facturingunits incertainzonesfrom April 20, but given thestringentsocialdistancingrulesandproposed punishment forpotentialviolation,manycom-panies,especiallythesmallones,choose to wait for a completeliftingofthelock-down.

While the government hasdonewell in swiftlyeasing thecomplianceburdenof compa-nies,unlesstheyaresupportedwith financial assistance intimesofanunprecedentedcri-sis,theirfatehangs inbalance.

As part of its packageannounced inMarch,the gov-ernmenthasdecidedtopaytheEPFcontributionof employersandemployees(roughly24%oftheir basic wage) for threemonths forunits that employup to 100 employees, 90% ofwhomearnlessthan`15,000amonth.Some80 lakh employ-eesandfourlakhunits standtogain fromthismove.However,those with more than 100employeesarestillstruggling.

NATION 11FINANCIALEXPRESS

WWW.FINANCIALEXPRESS.COM THURSDAY, APRIL 23, 2020

From the Front Page

BLOOMBERGWashington, April 22

PRESIDENTDONALDTRUMPannounced he would halt theissuanceofgreencardsfortwomonths — stopping short of asweeping immigration banthat included temporary for-eign workers — but hinted atthe possibility of additionalrestrictionsthatcouldcompli-cate planning for businessesand workers looking toreboundfromthecoronavirus.

Trump’sdecisionwillaffectthousands of would-be immi-grantsseekingtomoveperma-nently to the US, and furtherdelays a green card processthat is notoriously cumber-some for those seeking toremain in the country.

But the limited scope andtimeframeseemeddesignedtoreassure businesses, farmers,andworkersacrossthecountryworried that dramatic changesto immigration laws couldupend already fragile plans toreturnascoronavirussocialdis-tancing restrictions are gradu-ally lifted.Temporary workerswho represent the country’sbiggest source of immigrationwillnotbeaffected.

Still, the president’s com-mentsthathewasconsideringasecond,morerestrictiveexecu-tive order further reducingimmigration, as well as addi-tional extensions of the ban onpermanentresidencyvisaswerelikelytoundercutthateffort.

Companies may prove lesslikely to seek out and hire for-eignworkers—orproceedwithprojects dependent on non-American labor -- if they feartheir plans maybe thwarted bynewrestrictionsfromtheWhiteHouse.“Itwould bewrong andunjust forAmericans laid off bythevirus to be replaced bynewimmigrantlabourflowninfromabroad,”Trump said at aWhiteHouse briefing on Tuesdayevening.“WemustfirsttakecareoftheAmericanworker.”

Trump said his executive

order — announced in a tweetlateonMondaynight,tothesur-prise of even some aides —wasstill being drafted, but wouldonlybeineffectfor60daysandapply to individuals seekinggreencards.Hesaidthat“certainexemptions”would be allowedintheexecutiveorder,whichhesaid would be signed, “mostlikely”byWednesday.

The president also saidthat there would be specificprovisions exempting agri-cultural work, and that hisadministrationwouldmake iteven easier for farms to hiremigrant workers.

“The farmers will not beaffected by this at all,”Trumpsaid.Anearlydraftoftheexec-utive order obtained byBloomberg included excep-tionsforpeopleseekingjobsin

“food production and directlyhelping to protect the supplychain,” which could apply tofarm workers.The ban wouldalso not apply to healthcare ormedical research profession-als,according to the draft.

Technology industrywork-ers living in the US on H-1Bvisas, however, would have toprovide updated certificationstothegovernmentthattheyarenot displacingAmerican work-ers.Refugees and asylum seek-erswouldnotbeaffectedbytheorder,orwouldspousesandchil-dren of US citizens or perma-nentresidents.

But Trump hinted thatadditional restrictions couldbe on the horizon,particularlyif the economy struggles tobounce back from the pro-longedcoronavirusshutdown.

BACK PAGE 12FINANCIALEXPRESS

WWW.FINANCIALEXPRESS.COM THURSDAY, APRIL 23, 2020

TrumpsowsuncertaintywithGreenCardban,hintsatmoreTrumphintedthatadditional curbscouldbeonthehorizon if economystruggles tobounceback fromshutdown

●COVID CRISIS Netflix warns boom may not lastafter record growth last quarterLUCAS SHAWLosAngeles, April 22

NETFLIX SAIDTHE explosivegrowth in subscribers itposted last quarter — thestrongest in its history— maynot last beyond the stay-at-home orders.

Adding a record 15.8 mil-lion subscribers, Netflix bene-fited in the first quarter froman unprecedented health cri-sis,theglobalcoronaviruspan-demic.With billions of peoplestuck at home, the world’slargestpaidonlineTVnetworkexperiencedanexplosivejumpin customers in March, withmany binge-watching “TigerKing” and “Love Is Blind” toride out the quarantine.

But there’s no telling howlongtheboomwill last.Netflixexpects the surge to come atthe expense of growth in themonths ahead.

“Our guess is subscriberswill be light” in the third andfourth quarter,Chief ExecutiveOfficer Reed Hastings said onTuesdayonacallwithinvestors.

Netflixforecasts7.5millionnew subscribers in the secondquarter — a great quarterunder normal circumstances.But investors, who sent thestock to new highs this week,may have wanted more.Though they initially bid Net-flix shares up as much as 12%after the close on Tuesday, therally soon fizzled. The stockwas down 0.7% as of 7:34 amonWednesdayin NewYork.

“Like other home-enter-tainmentservices,we’reseeingtemporarily higher viewingand increased membershipgrowth,”thecompanysaid inaletter to investors.“We expectviewing to decline and mem-

bershipgrowthtodecelerateashome confinement ends.”

While Covid-19 has beendevastating to the globaleconomy, video-streamingservices like Netflix andYouTube have found a captiveaudience. The new Disney+service surpassed 50 millionsubscribers in just fivemonths, a faster pace thanpredicted. Three new videoservices, Quibi, Peacock andHBO Max, arrive this quarterand hope to have similarlyrapid starts.

Skeptics have said Netflixwouldlosecustomerstothenewcompetition.Butthusfar,thosefearshavebeenunfounded.

“What we’re seeing is peo-ple are cutting linear TV andadding Disney+ on top of Net-flix,”saidNickGrous,ananalystat Ark Investment Manage-ment,whichownstheshares.

Months after releasingOscar-nominatedmoviessuchas “The Irishman” and “TheTwoPopes,”Netflixcrackedthecode on tabloid-style docu-mentaryTV.“TigerKing,”aboutbig-cat zoo owners, was thebiggest new hit series for Net-

flix in the US since “StrangerThings,”according to Nielsen.

Meanwhile,“Love Is Blind,”a reality dating show, drew 30millionviewers in its first fourweeks, Netflix said. A newerdating show,“Too Hot to Han-dle,” has been one of the mostpopularshowsonNetflixsinceits release lastweek.

Netflix also showed stronggrowth all around the world.Business in the US and Canadapicked up after a few sluggishquarters, with Netflix adding2.31millionnewcustomersinitsbiggest market.Thatwas morethan the prior three quarterscombined.The companysignedupnearly7millioncustomersinEurope, the Middle-East andAfrica,themostofanyregion.

ThecoronavirushadanotherunintendedbenefitforNetflix:itsfirstquarterofpositivefreecashflowsince2014.Netflixproduced$162 million in the first threemonths of the year. While thecompanyhad alreadyvowed tonarrowits cash burn in 2020,aworldwidepauseinTVandmovieproduction lowered costs in thequarterandwillcontinuetodosothisyear. —BLOOMBERG

Trump says‘we don’t know’howNorthKorean leaderKim Jong Un is doingMARIO PARKER & JIHYE LEEWashington, April 22

US PRESIDENT DONALDTrump said he doesn’t knowabout Kim Jong Un’s healthafter American and SouthKorean officials gave differingaccounts on the North Koreanleader’s condition afterhewasconspicuously absent from amajorcelebration.

“I wish him well,we’ve hada good relationship,” Trumpsaid onTuesdayin response toa question about Kim at aWhiteHouse.TheUSpresidentsaid “we don’t know” if thereports about Kim’s healthdeteriorating are true, addingthat he might reach out tocheck on him.

USofficialssaidonMondaytheywere told Kimwas in crit-ical condition after undergo-ingcardiovascularsurgerylastweek and they were unsure ofhiscurrenthealth.Meanwhile,South Korean President MoonJae-in’s office said that Kimwasconducting“normalactiv-ities” in a rural part of thecountryassisted byclose aidesand no special movementswere detected.

Kimcontinuedtobeabsentfrom North Korean statemedia as ofWednesdaymorn-ing. Neither the state broad-caster nor the official KoreanCentral News Agency men-tionednewpublicappearancesby the leader, although theycontinued to publicise his

messages to dignitariesaround theworld.

“I just hope he is doingfine,”Trump said.“I had a verygood relationship with KimJong Un and that is to the ben-efitofthecountry.Thatisnotabad thing, that’s a good thing,and I would like to see him bewell.We will see how he does.Again, I don’t know that thereports are true.”

Trump and Kim have gonefrom trading insults in 2017,when North Korea was testingnuclearweapons and missilesthat could deliver them to theUS, to striking up whatPyongyang officials describe as“mysteriouslywonderfulchem-istry”aftermeetingthreetimessince a summit in June 2018.Despite the unprecedentedtalks and the bonhomiebetween the two, there havebeen no indications that Kimhassloweddownhisproductionofweaponsofmassdestruction.

The health of Kim, over-weight and a heavy smoker, isone of North Korea’s mostclosely guarded secrets,knownby a handful of people in theinnercircleof leadership.WhileNorth Korea had scaled downmajor events as it battles thecoronaviruspandemic,specula-tion about Kim had been grow-ing since his unprecedentedabsence fromApril 15 celebra-tions for the birthday of hisgrandfather and state founderKim Il Sung,one of the biggestdaysonthecountry’scalendar.

Even the most well-informed North Korea expertsfind it hard to tell what’s hap-pening in the secretive state.The Daily NK, a Seoul-basedwebsite that gathers informa-tion from informants insidethe isolated nation,separatelyreportedthatKimunderwenta“cardiovascularsurgicalproce-dure” and was now mostlyrecovered. —BLOOMBERG

North Korea’s Kimdynasty hasa long history ofhealth scaresJON HERSKOVITZTokyo, April 22

TWO CONSTANTTHREADSthat have run through the his-tory of North Korea: Rule bythe Kim dynasty,and specula-tion about the health of itssecretive leaders.

The latest incident tookplace this week when US offi-cials said on Mondaytheywereunsure of Kim Jong Un’s healthafter they were told he was incriticalconditionafterundergo-ing cardiovascular surgery.SouthKorea’spresidentialofficesubsequentlysaidKimwascon-ducting normal activities in aruralpartofthecountry.

Heavy smoking, bulgingwaistlines and mysterious ail-ments have passed from statefounder Kim Il Sung to his sonKim Jong Il and then to hisgrandson, fueling countlessspeculative reports about theirtreatmentsandprognoses.Theiractualhealthconditionhasbeenknown only by a small circle oftheir most-trusted aides,withtheoutsideworldinthedark.

Here is a rundown of someof theirhealth scares:

KimIlSung,1912-1994One of the biggest health

concerns for the man NorthKoreahasenshrinedasitseter-nal president was the almosttennisball-sizedgrowthontheback of his neck, which wascaught in photographs oninternational trips over theyears. His propagandamachine made sure it was

nevershown to his public.KimJongIl,1942-2011The man dubbed by state

propaganda as the “DearLeader”died in2011ofaheartattack at the age of 70 after alifeofharddrinking,heavyeat-inganddecadesofchainsmok-ing. During his 17 years inpower,hewas once theworld’slargest purchaser of HennessyParadis cognac, and reportssaid he sent aides to Beijing topick up McDonald’s Big Macs.SouthKoreanswhomethimin2000atthefirstsummitoftheleaders on the divided penin-sulasaidhehadapenchantforrichandgreasyfood.

KimJongUn,1984-?The 36-year-old leaderwas

conspicuously absent from amajorcelebrationonApril15tocelebrate the birthday of hisgrandfather,triggeringthelatestround of speculation.Kim JongUn has ballooned in size sincetaking power in 2011,and hasbeenseenpuffingawayonciga-rettes in public appearances,aswell as on the sidelines of sum-mitswith US President DonaldTrump. —BLOOMBERG

ESPN commercial hints at advertising’s deepfake futureTIFFANY HSUApril 22

UNABLE TO FILM new com-mercials during the coron-avirus pandemic, advertisingagencies are turning to tech-nologies that can seamlesslyalter old footage, sometimesputtingviewersinapositionofdoubtingwhattheyareseeing.

During Sunday’s episodesof“The Last Dance,”the ESPNdocumentary series aboutMichael Jordan and theChicago Bulls,State Farm rana commercial featuringexpertly doctored footage ofthe longtime “SportsCenter”anchor Kenny Mayne.

In the ad, a much youngerMayne is seated at the“SportsCenter”desk in 1998.He reports on the Bulls’ sixthchampionship title — beforetaking a turn towards theprophetic.

“This is the kind of stuffthat ESPN will eventuallymake a documentary about,”Mayne says. “They’ll call it

something like ‘The LastDance.’ They’ll make it a 10-part series and release it inthe year 2020.

It’s going to be lit. Youdon’t even know what thatmeans yet.”As a vintage StateFarm logo appears in thebackground, he adds, “And

this clip will be used to pro-mote the documentary in aState Farm commercial.”

The producers made thecommercial bylayeringvideoof Mayne’s 60-year-oldmouth onto footage of his 38-year-old face. To many view-ers, the stunt provided a wel-

come moment of levity indepressing times. Otherswere made uneasy by thesmoothness of the patch,describing it as a type ofdeepfake.

“We tried to make the jokeclear enough so that weweren’t tricking anyone,”saidCarrie Brzezinski-Hsu, thehead of ESPN CreativeWorks,which created the commer-cial with the ad agenciesOptimum Sports and Trans-lation.

Brzezinski-Hsu saidmanipulated footage waslikely to appear in futureESPN ads. And executives atseveral major advertisingagencies said they had dis-cussed making similar com-mercials with their clients inrecent weeks.

“We’re so restricted in howwe can generate content,”said Kerry Hill, the produc-tion directorforthe ad agencyFCB in North America.“Any-thing that can be computergenerated is somethingwe’re

going to explore.”Husani Oakley, the chief

technology officer of the adfirm Deutsch, said digitallyaltered ads should somehowclueviewers into the fact thatwhat they are seeing is notcompletely real.

“The technology is here,and it’s only going to get bet-ter and better,and we have toget used to it,” he added.“We’re exploringways to havefun with it.”

The ad industry hadstarted to show interest indigital manipulation beforethe pandemic.In 2018,the adagency Wieden & KennedyLondon collaboratedwith theartist Gillian Wearing on adeepfake film featuring peo-plewhose facial featureswereblended with Wearing’s.

This year, the ad firmGoodby Silverstein & Part-ners worked on an app thatallowed users to appear to bedoing the dance moves pulledoff by Lil Nas X in a Doritoscommercial. Executives

described the experience asturning “deepfake intodancefake.”

As face-swapping andvoice-generating technolo-gies have become morerefined and accessible,peopleon video calls have superim-posed Elon Musk’s face overtheir own as they chat.

While the blurring of thereal and the fake can beamusing on Zoom or in thepromotion of snack foods, itpresents thornyethical issuesaround consent and disinfor-mation.

Pornographic deepfakevideos, with real-seemingpolitical figures and celebri-ties in central roles, have cir-culated on Reddit.

A recent doctored videoappeared to show Prime Min-ister Sophie Wilmès of Bel-gium linking the coronaviruspandemic to climate change.Ahead of the 2020 vote, Face-book and Twitter have saidthey are closely monitoringmanipulatedvideos. —NYT

Airlines,Amazonupped lobbying asvirus hit economyBEN BRODY&MARK NIQUETTEWashington, April 22

US INDUSTRIES INCLUDINGairlines,pharmaceutical firmsandBigTechboostedtheirlob-byinginthefirstthreemonthsof 2020 as the coronaviruswent from a regional concernto a worldwide pandemic thatprompted governments tospendtrillionsofdollarsinaid.

The airline trade associa-tionAirlinesforAmericaspentnearly $2 million in the firstquarter, up more than 50%from almost $1.3 million inthe same period a year earlier,and secured financial assis-tance as demand for air travelplunged,accordingtolobbyingdisclosuresfiledwithCongresson Monday.

The US Treasury Depart-ment disbursed $2.9 billion topassenger airlines on Mondayin the first round of payrollassistance to industries.

The airlines had sought$58billioninaidforpassengerand cargo carriers from Con-gress, and with supportivemessagesfromPresidentDon-ald Trump, the industry even-tually secured $50 billion inloansandpayrollassistanceforpassenger carriers and $8 bil-lionforcargocarriersaspartofthe $2.2 trillion stimulus thatCongressassembledattheendof March.The forms representlobbying from the start of theyearto March 31.

The government is alsorequiringlargecarrierstorepaysome of the assistance at lowinterest rates,and theTreasuryhastheabilitytotakestockwar-rants.Onbothprovisions,therewas pushback from the indus-try,ascarriershavecutcapacityup to80%. —BLOOMBERG

Food,rent,health insurance? Toughchoices in a pandemic-hit economyNEWYORKTIMESApril 22

TWODAYS BEFORE learningthatshewouldloseherjob,LissaGilliam spent hundreds of dol-larsonlineonbabyproducts.

A 37-year-old expectantmother, Gilliam had plannedto ask local parents in Seattlefor used strollers and second-handonesies inabidtoreducewaste. But as the coronaviruspandemic ravaged the area,new items delivered in boxesseemed a saferbet.

She figured she couldaffordthesplurge,earning$50an houras a full-time contrac-tordesigningeducationalcur-riculums for a nonprofit. Butthen, on April 2, her employerslashed her hours and told herthat hercontractwould end inearlyMay—afewweeksbeforeshe is to give birth.

Suddenly,likemanyothers,Gilliambecamehyperawareofherexpenses.Sheandherhus-band, a high school physicsteacher, now take a painfuldailytallyoftheirfinancialpri-orities: Isthat$5monthlywebmagazine subscription reallynecessary? How much doeswatering the garden cost?When will they need to taptheirpaltrysavings?

“We’re OK for now,” shesaid.“But the bottom may fallout from underus.”

As millions of Americanslose jobs, take pay cuts, closebusinesses and absorb family

members into their homes,they are being forced torethink where their moneygoes.Evenbeforethescramblefor new jobs can begin,peopleare cajoling creditors, lookingfor gig work or simply cuttingback to get through the firstfewdisorientingweeks.

Forsome,the question is assimpleaswhethertospringfora jigsaw puzzle to keep fromgoing corona crazy, and howmuch to tip the person whodelivers it.

But for many others, thestakes are far higher: a goodcreditscoresacrificedtopayoffcertain bills before others, orramendinnersrationedsothatcashforgroceriescanberepur-posedforanemergencyfund.

Tosavemoney,heatershavebeen turned down, clothingsales ignored and auto insur-ance policies canceled. Retailsales tumbled 8.7% in March,by far the largest monthly

decline everrecorded.Plans to visit Disneyland,

whichisclosed,turnedintoat-homere-enactmentsandlongsessionswithDisneyPlus,Ani-mal Crossing and Zoom.

Rents are going unpaid aspeople spend weeks waitingforgovernment aid to arrive.

“An economic shock likethis could have a long-termimpact on people who havetraditionallyfelt liketheywerebeing cautious, that theyweren’t profligate with theirmoney, but didn’t have toworryabout paying for rent oraffordingfood,”saidStephanieAaronson, the director of eco-nomicstudiesattheBrookingsInstitution.

“They might have moredebt, which will make itharder to spend in the future,or they might just feel lesssecure,whichcouldboostsav-ings and potentially dampenthe recovery.”

Recovered, almost: China's earlypatients unable to shedCovid-19REUTERSWuhan, April 22

DRESSED IN A hazmat suit,two masks and a face shield,Du Mingjun knocked on themahogany door of a flat in asuburbandistrictofWuhanona recent morning.

A man wearing a singlemask opened the door a crackand, after Du introduced her-selfasapsychologicalcounsel-lor,burst into tears.

“I really can’t take it any-more,”hesaid.Diagnosedwiththe novel coronavirus in earlyFebruary, the man, whoappeared to be in his 50s, hadbeen treated at two hospitalsbefore being transferred to aquarantine centre set up in acluster of apartment blocks inan industrial part ofWuhan.

Why,he asked,did tests sayhestillhadthevirusmorethantwo months after he first con-tracted it?

The answer to that ques-tion is a mystery baffling doc-torsonthefrontlineofChina’s

battle against Covid-19, evenas it has successfully slowedthe spread of the coronavirusacross the country.

Chinese doctors in Wuhan,wherethevirusfirstemergedinDecember,sayagrowingnum-ber of cases in which peoplerecoverfromthevirus,butcon-tinue to test positive withoutshowing symptoms, is one oftheir biggest challenges as thecountrymovesintoanewphaseof itscontainmentbattle.

Those patients all testednegative for the virus at somepoint after recovering, butthen tested positive again,some up to 70 days later, thedoctors said. Many have doneso over50-60 days.

Ayoung KennyMayne, left, mergedwith an older KennyMayne, right, in a recent State Farm commercial ESPN

DonaldTrump’s decisionwill affect thousands ofwould-beimmigrants seeking tomove permanently to the US

NOTEASYNOW■PresidentTrumpanno-uncedhewould halt theissuanceofgreencardsfor twomonths

■Temporaryworkerswho represent thecountry’s biggestsourceof immigrationwill not be affected

■Thebanwould alsonot apply to healthcareormedical researchprofessionals

■Refugees andasylumseekerswould notbeaffectedby theorder

The coronavirus had another unintendedbenefit for Netflix:its first quarter ofpositive free cash flow since 2014