MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 7 NO.

290

Tuesday, December 3, 2024

Public procurements may Govt identifies 2 mn hectares

livemint.com come with startup quotas uP1 for mega pulses boost uP1
 MUMBAI, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 7 NO. 290

Tuesday, December 3, 2024

Think Ahead. Think Growth.

mint primer QUICK EDIT

AI-positive? How Reform

Trump may grow fuel taxes On Monday, India’s finance
India’s IT business ministry did away with windfall
tax on crude-oil products, pet-
rol and diesel, ending a distort-
BY SHELLEY SINGH ive imposition that had been put
Factors that have combined to improve the outlook for the $260- in place around mid-2022, soon
billion IT services sector include rate cuts and rising discretionary after the Russia-Ukraine war
spending in the US, the largest market for IT services. President-elect sent oil prices soaring. This will
Donald Trump’s Artificial Intelligence (AI) plans are also of interest. relieve oil companies whose
profit margins took a hit thanks
to the Centre taking away a slice
of their one-off profits that geo-
political turbulence had deliv-
ered. Broadly, it’s always a bad
idea to levy opportunistic taxes.
These defy the principle of tax
stability, which all investors
should be assured of in every
sector. In any case, fuel taxation
in India has long needed to be
rationalized. Since demand for
fuels doesn’t vary much as their
prices rise, they are easy to
squeeze for revenue. Fuels in
India remain woefully over-
taxed. Kept out of the GST sys-
What do market Will a weaker rupee tem, fuels in many states sell at
1 movements indicate?
In recent weeks, the stock markets
2 impact IT services?
A weaker rupee vis-à-vis the US
prices with such huge slices
going into government coffers
have been volatile, and showed dollar will boost exports (even as it that they distort the cost struc-
bearish trends. However, IT stocks makes imports dearer), giving a tures of several industries. Avia-
were resilient, with the Nifty IT leg-up to the IT services tion, for example. Across sec-
index up 32% on 29 November businesses in India. In the past six tors, all this adds up to eco-
from a year ago. The November months, the rupee has declined by nomic inefficiency. Dropping
rally started after Donald Trump’s 1.7% versus the dollar. A decline in
the windfall tax is welcome, if
win in the 2024 US presidential the rupee enhances earnings of IT
election. The market anticipates services exporters, as about 70% of belated. But the tax treatment of
that his proposed policies will be their revenue comes from the US. fossil fuels is in need of a big
favourable for the IT services For every 100 basis point (bp) rethink—guided by carbon con-
business. The expected proposals change in the rupee-dollar cerns, not revenue rake-ins.
include corporate tax cuts, exchange rate, the margins and net
sparking optimism about profit of IT services companies are
increased discretionary spending impacted positively. While
by US companies—a key market currency depreciation will make
for IT services providers, which exports more competitive, a lot
QUOTE OF THE DAY
get 60–70% of their earnings from depends on demand and related
the US market. trade policies as well.
It is economically impossible that
MINT the kirana store is shrinking...
We are growing but so are the
3 Is discretionary spending
back in the US market?
Interest rate cuts of 50 and 25 bps by the
kirana stores, and so are other
US Fed in September and November are
formats of commerce.
likely to increase spending in the banking,
financial services and insurance segment.
It accounts for around 35% of the $260
billion business for IT services firms. The
rate cut also changes business sentiment AADIT PALICHA
and could result in higher discretionary CO-FOUNDER AND CEO,
spend by global clients. ZEPTO

4 Will Trump’s AI stance

help Indian IT firms? 5
Donald Trump’s stance on easing
Could there still be
some headwinds?
Notwithstanding positives for the
regulations on AI will boost this software services exports sector,
space. The market will see a fast much will depend on the policy INSIDE
shift from proofs of concept to AI statements post 20 January, when
deployments and bigger deals Trump assumes office. Whether Mark to Market: Demand slump hurts
being signed. Already the AI the IT business grows and IT factories >P4
outlook was getting better with stocks continue to rally depends Global: China tensions prompt U.S.
bellwether Accenture ending on policy decisions by the US Navy race to reload missiles at sea >P8
FY24 with Gen AI order inflows of Fed and Trump’s proposed tariff
Money: Can you withdraw pension share
$3 billion. AI projects for Indian measures. As of now, what shape
of your EPF early? Know the rules >P11
firms are expected to increase at a the US import duties could take
fast clip. This will have a cascading and their wider ramifications are Views: Don’t blame education gaps on
impact across verticals including still unknown. While the services policy settings >P12
hi-tech, consumer, energy, and sector may be immune to an Business of Life: A little attention can
BFSI as more companies lean on extent, a negative shock cannot be build deep connections >P14
AI to build their competitive edge. ruled out at this stage.

What do you prefer for long-term

Take our survey and get a capital gains tax?

chance to win iPhone 16!* A. 20% tax with indexation benefits

B. 12.5% without indexation benefits

C. Not sure which one is better

D. I don't know about this

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 PLAIN FACTS

Why Audi, GM want to

queue up for Formula 1
BY HOWINDIALIVES.COM

L
ate last month, Formula 1 (F1) reached an in-principle agreement with General Motors (GM), the fifth-largest car company
globally by revenue, to make it the 11th team on the grid in 2026. GM will race under its luxury car brand, Cadillac. GM fol-
lows Audi, from the Volkswagen Group. Audi has purchased an independent F1 team, and will start racing from 2025. In
the post-1990 period, considered to be the contemporary era of F1, there have never been more teams belonging to car manufac-
turers. In 2025, five of the 10 teams will be car manufacturers, increasing to six of 11 in 2026. The last time carmakers made a
beeline for F1 was in the first decade of this century, when the global economy was rising. But the absence of success in a sport
that is extremely technology-oriented, coupled with the 2008 financial crisis, made them reconsider. Those years saw Jaguar,
BMW, Honda and Toyota come and go. It’s taken 10-15 years for carmakers to commit to
F1 again. Liberty Media, which acquired F1 in 2017, is a big reason.
From the outset, Liberty made three goals clear. One, hold more F1 races in the US, a huge Liked this
market. It has increased that from one to three, and attracted GM. Two, bring more car man- story? Share it
ufacturers, who are more likely to channel higher financial and technical resources than by scanning
the QR code.
independent teams. Three, increase viewership and make F1 more profitable. In 2023, F1
had its best year, making it easier for Liberty to increase teams.

The number of carmakers in F1 will Financially, 2023 was the best

hit a high in 2026 year for Formula 1
Split of Formula 1 teams by ownership Financial results of Formula 1 ($ million)
Car manufacturers Independent teams Revenue Operating income
12 2017 1,783 17
2018 1,827 -68
10
2019 2,022 17
8 2020 1,145 -386
2021 2,136 92
6
6
2022 2,573 239
5 2023 3,222 392
4

2
Liberty Media
Corporation
0 acquired Formula
1990 2026 1 in January 2017.
This shows car companies in F1 as full-fledged teams, and not just as engine Source: Annual reports of
suppliers or in technical partnerships. Liberty Media Corporation
Source: Statsf1.com

Lap of Luxury Cadillac sales have stagnated in

the past decade
THE FOUR carmakers currently in F1 are Ferrari, Mercedes, Cadillac cars sold in US and Canada
Renault (through its sports-car brand Alpine) and Aston 200,000
Martin. The high-tech nature of F1 remains a draw for higher-
end carmakers.
160,000
For example, the 2023 annual report of Aston Martin, which
re-entered F1 in 2021, said that 60% of all luxury car buyers
“strongly agreed” that they were more likely to buy an Aston 120,000

Martin because of its F1 association.

Audi has European roots, like other carmakers on the grid. 80,000
Cadillac, however, is a quintessential American brand. Its sales
have been static or declining, as per GM Authority, which 40,000
tracks developments related to the company. It will hope the
F1 association helps it sell more cars, as it was for Mercedes, 0
2014 2023
one of the two most successful teams in the past 15 years. In
The US and Canada are Cadillac's two main markets.
2010, when it rejoined F1, Mercedes sold 1.27 million cars. In
Source: GM Authority
2023, it sold 2.04 million.

Carmakers tend to be bigger than

independents
Sliding Scale
Financial results of F1 teams in 2023 (£ million) MERCEDES’ WAS a short journey to the top. Its entry in 2010
was via buying an existing team. In 2014, F1 saw a big change in
Carmakers Turnover Profit technical regulations. That year, Mercedes catapulted to the
Mercedes 546.5 83.9 top, and has mostly stayed around there since. Audi, like
Alpine 250 7.8 Mercedes, is taking over an existing team. The next big change
in F1 technical regulations is due for 2026, and both Audi and
Aston Martin 244.7 -29.7
Cadillac will hope that will give them a window to be
Independent teams competitive.
McLaren 431.1 12.9 The scale of operations in F1 can vary immensely. Carmakers
tend to operate on a higher revenue and cost trajectory than
Red Bull 307.5 1.3 independent teams. Further, results make for a bigger
Williams 127 -80.3 operation. Data compiled from the UK companies regulator by
Haas BlackBook Motorsport, a platform for motor racing, shows that
113.4 5.6
the 2023 revenues of Mercedes was about four times that of
Teams arranged in descending order of turnover. Data for Ferrari,
Kick Sauber and RB not available.
Williams, an independent team. When they start, expect Audi
Source: BlackBook Motorsport and Cadillac to be around the Aston Martin and Alpine levels.

Beyond F1 Selling road cars is Ferrari's ultimate

objective to be in F1
BUT F1 is also not very profitable. For independent teams like Break-up of Ferrari's revenues (€ million)
Williams and Haas, racing is the only thing they do, and Car and spare parts Sponsorship, commercial and brand
profitability matters more. But for carmakers, F1 is one of the Engines Other
many pieces of the larger goal to sell more road cars. Their 6,000
prime objective here is brand-building. 5,000
Take Ferrari, the most storied team in F1. Between 2015 and 4,000
2023, revenue of its division where F1 resides has grown an
average of just 3.3% per year. But its revenue from car sales has 3,000

increased by 12% a year. 2,000

Further, the share of car revenues in its total revenues has 1,000
increased from 73% to 86%. F1 and the business of F1 matters
to Ferrari. But it’s the business beyond that matters more. And 0
2015 2016 2017 2018 2019 2020 2021 2022 2023
that’s what Audi and GM are eyeing by wading into the cut- ‘Sponsorship, commercial and brand’ includes net revenue earned by
throat world of F1. Ferrari racing teams and those generated through the Ferrari brand.
‘Engines’ includes net revenue from the sale of engines to Maserati and
www.howindialives.com is a database and search engine for from rental of engines to other Formula 1 teams.
public data. Source: Ferrari financial statements
PARAS JAIN/MINT

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MINT LUXURY LOUNGE MINT MONEY TALKS WHY NOT MINT MONEY?
Humanity It’s always a All grandpar-
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 Mumbai, NEW DELHI, BENGALURU, KOLKATA, CHENNAI, AHMEDABAD, HYDERABAD, CHANDIGARH*, PUNE*, LUCKNOW* VOL. 7 NO. 290 Rs. 10.00 18 PAGES

Tuesday, December 3, 2024

Cash is king, but Rajiv Kaul-led Prosus sees growth goldmine

livemint.com CMS Info needs a queen uP10 in India, says CEO Bloisi uP3

SENSEX 80,248.06 445.27 NIFTY 24,276.05 144.95 DOLLAR ₹84.70 ₹0.21 EURO ₹89.06 ₹0.16 OIL $74.27 $0.51 POUND ₹107.60 ₹0.36

Public procurements may Centre identifies

2 mn hectares for
DON’T MISS
MINT

come with startup quotas mega pulses boost

Secretaries’ committee pitches idea; scheme may also include support for research Dhirendra Kumar
dhirendra.kumar@livemint.com Protein problem
NEW DELHI Pulses imports have risen Govt scraps windfall tax on local
Mihir Mishra & Sneha Shah ship, said Rahul Garg, co-founder as production declined crude sales, jet fuel exports
start signal
T
NEW DELHI/MUMBAI and CEO of Moglix, an industrial he Centre is working on Quantity of pulses (million tonnes) The Union government on Monday
B2B manufacturing startup, which an ambitious plan to Production Imports scrapped the windfall tax on the sale of

T
op central ministries are Some of India’s ongoing efforts to encourage startups sector include was last valued at more than $2.6 grow pulses on two mil- domestic crude oil and the export of
27.3
the Startup India seed fund initiative and Atal Innovation Mission. 26 aviation turbine fuel (ATF). It also withdrew
discussing a proposal billion. lion hectares of unused, fertile 24.2
that may mandate pub- “By granting startups access to land across the country, two the road and infrastructure cess levied on
lic sector units to pur- 154,794 50 mn government contracts, this policy people aware of the matter said, petrol and diesel exports. >P2
chase 10% of their THE NUMBER of jobs likely to be empowers them to scale, create as falling production and rising
NUMBER OF created by Indian startups by the
requirements from startups, two DPIIT-approved startups jobs, and drive economic growth. imports drive up prices. HUL bets growing wealth will
people aware of the development end of this decade, according to This initiative not only provides a Farmers will be encouraged
as per latest count Confederation of Indian Industry 4.73 broaden spending avenues
said. platform for startups to showcase to grow tur (arhar), urad and 2.69 2.49 Fast-moving consumer goods maker
Secretaries from the ministries innovative solutions but also masur varieties that are
of commerce, labour, chemicals,
heavy industries, steel, MSME and
67
NUMBER OF
$9.2 bn accelerates the development of
cutting-edge technologies that
imported in large quantities
from countries such as Mozam-
FY22 FY23 FY24
Source: Ministry of agriculture
and farmers' welfare
Hindustan Unilever Ltd (HUL) recently
unveiled its roadmap for the next couple of
years, highlighting a significant shift in Indian
TOTAL SIZE of
textiles are part of these discus- unicorns in can enhance India’s global com- bique, Myanmar, Canada and consumer preferences. HUL sells more than
VC funding
sions, the people cited above said India, only deals for petitiveness,” Garg said. Australia, the people cited 50 brands in India. >P6
on the condition of anonymity. behind US (703) startups in 2024, Supporting startups could help above said on the condition of rises. Federal think tank Niti
“The intent is to help India’s and China till October create jobs for hundreds of thou- anonymity. The scheme Aayog has projected that Manufacturing PMI hits lowest
startup sector grow, and make (340), according sands of India’s youth, at a time of involves the ministries of con- India’s demand for pulses will
India an attractive place for them,” to Hurun index rising unemployment. The gov- sumer affairs and agriculture, grow from 26.72 million tonnes
in 11 months as demand slumps
one of the two officials said. ernment’s latest periodic labour and the department of land (mt) in FY22 to 32.64 mt by Manufacturing activity has slowed amid
According to the second official, JOB HUB force survey shows the unemploy- resources. FY30. The country has been worries of India’s consumption story fizzling
mandatory public procurement ment rate inching up to 3.2% The two million hectares relying on imports to meet the out. The seasonally adjusted HSBC India
Supporting the india hosts the startups may add Manufacturing Purchasing Managers’ Index
from startups is one of the several startups could create word’s third-biggest $1 tn to the economy between July 2023 and June 2024 where pulses will be cultivated shortfall. By expanding domes- (PMI) fell to an 11-month low of 56.5 in
options under discussion. The jobs for India’s youth club of unicorns by FY30, as per CII from 3.1% the previous year. is part of a total of four million tic cultivation, the government November from 57.5 in October. >P4
official said this could be similar to Meanwhile, India’s startups cre- hectares of watershed land aims to stabilize prices, meet
how the Union government ated around one million jobs till identified for farming. Water- increasing demand and reduce
encourages defence startups by engaging industries. ernment’s media department, 2023, the Economic Survey 2023 shed land is where rainwater its import bill. Riju Raveendran approaches
through its Innovations for The idea of compulsory procure- remained unanswered. showed. According to a Confeder- collects and flows into a river, Consumer Price Index (CPI) NCLT to seek inclusion in case
Defence Excellence (iDEX) frame- ments was pitched by a group of Some of India’s ongoing efforts ation of Indian Industry (CII) stream, or lake. This land has inflation hit a 14-month high of Riju Raveendran, the largest shareholder of
work, which funds and supports secretaries during mid-2024, the to encourage startups sector report, startups will likely create enough moisture contents use- 6.21% in October, up from Byju’s and brother of Byju Raveendran, has
startups to drive innovation in second official said. Its other sug- include the Startup India seed 50 million new jobs and add $1 tril- ful for growing pulses. 5.49% in September, reflecting approached NCLT on Monday, seeking to
defence. gestions included supporting fund initiative and Atal Innovation lion to the economy by FY30. Rising prices of pulses is a ongoing price pressures across be included in the bankruptcy case
The scheme’s aim is to foster research and innovation. Mission. mihir.mishra@livemint.com major contributor to food infla- various sectors, according to deliberations involving Byju’s, its lenders
innovation and technology devel- Queries sent to the Press Infor- Reservation for startups is a pos- For an extended version of this tion as production continues to and the Indian cricket board. >P5
opment in defence and aerospace mation Bureau, the central gov- itive step to foster entrepreneur- story, go to livemint.com decline even as consumption TURN TO PAGE 6

MapMyIndia under Shipping may get

lens for biz transfer ₹25,000-crore lift
Varun Sood Subhash Narayan
varun.sood@livemint.com subhash.narayan@livemint.com
BENGALURU NEW DELHI

D T
igital maps pioneer he domestic shipbuild-
MapMyIndia has come ing industry may receive
under the scrutiny of a boost in the forthcom-
investors and proxy advisory ing Union budget, with the
firms after the company central government chalking
agreed to invest ₹35 crore and out a plan for financial support.
transfer a tiny share of its busi- According to two persons
ness to a company owned by aware of the development, the
the son of its founder and pro- Centre is finalizing the con- The shipping ministry is
moter. Rohan Verma has stepped tours of a ₹25,000 crore mari- planning investor meets and
On Friday, MapMyIndia’s down as CEO. @_ROHANVERMA/X time development fund (MDF) road shows abroad. PTI
parent C.E. Info Systems Ltd that would provide long-term
informed stock exchanges that new company. and low-cost financial support To attract pension funds and
chief executive officer Rohan MapyMyIndia, which pro- for shipbuilding in India, and sovereign wealth funds to par-
Verma would step down and vides data to Apple Maps and other blue-water infrastructure ticipate in the fund, the Union
start a new business-to-con- Amazon’s Alexa, ended FY24 projects. They added that the ports, shipping and waterways
sumer (B2C) venture. The with ₹379.4 crore revenue. new scheme is expected to be ministry is planning investor
company will transfer its According to co-founder, announced and operational- meets and road shows in the
Mappls Mall and Travel app for ized as part of the Union budget
hotel and flight booking to the TURN TO PAGE 6 for 2025-26. TURN TO PAGE 6

Building Apple products has become a

side hustle for China’s biggest EV maker
Yang Jie expertise.
feedback@livemint.com “We could not do what we
do without them,” Apple Chief

A
pple products say on Executive Tim Cook told Chi-
the box “assembled in nese state media on a visit to
China,” leaving the Beijing in late November, his
mystery of who did the assem- third to China this year. In the
bling. Owners of a new iPad first Trump administration,
might be surprised to learn Cook successfully lobbied the
one of the answers: China’s president to exempt electron-
biggest electric-vehicle ics including the iPhone from
maker. a tariff on Chinese-made
BYD, known globally as goods.
Tesla’s most formidable EV An EV resembles a smart-
competitor, has a second busi- Apple has been diversifying its supply chain to countries like India phone on wheels because both
ness manufacturing electron- and Vietnam and often turns to Chinese partners for expertise. AP rely on batteries, chips and
ics, and it has grown to assem- software. The blending of cars
ble more than 30% of Apple’s makes sense to BYD execu- of shedding Chinese manufac- and phones is increasingly
tablets, according to industry tives, who say both businesses turing . The U.S. push to limit part of everyday business in
executives and analysts. draw on the company’s core imports from the country is China. BYD, which stands for
The Chinese company said competence of making preci- likely to expand in the second “build your dreams,” supplies
it had more than 10,000 engi- sion devi- T r u m p parts and contract manufac-
neers and around 100,000 ces at low administra- turing for both.
employees dedicated to the cost. tion . One client is Xiaomi, a top
“fruit chain,” the local term for Apple’s Apple smartphone maker that ven-
Apple’s supply chain. rising dependence on two Chi- has been diversifying its sup- tured this year into sporty
The combination of brand- na-based contractors—BYD ply chain to countries such as sedans. BYD helps assemble
name carmaker and contract and iPhone assembler Lux- India and Vietnam and often
electronics manufacturer share—points to the difficulty turns to Chinese partners for TURN TO PAGE 6
02 TUESDAY, 3 DECEMBER 2024
MUMBAI ECONOMY & POLICY LIVEMINT.COM

Govt scraps windfall tax on States given capex

loans of ₹50,571 cr
local crude sales, ATF export in Apr-Nov: MoS fin
Rhik Kundu
rhik.kundu@livemint.com
NEW DELHI
Windfall tax has been dropped as the outlook for the global oil market is now largely weak

T
he Union government
Piyush Goyal, minister for has released
commerce and industry. PTI
Rituraj Baruah comes at a time when the outlook for the ₹50,571.42 crore to
rituraj.baruah@livemint.com global oil market is largely weak, with states as part of its
Climate NEW DELHI prices unlikely to reach the all-time high
levels of 2022 anytime soon.
‘special assistance for capital
investment’ scheme to be used

T
he Union government on Rating agency Icra on last month pro- for ramping up capital
change was Monday scrapped the wind-
fall tax on the sale of domestic
jected that global crude oil demand
growth would decelerate significantly
expenditure during the first
eight months of the ongoing

not caused crude oil and the export of

aviation turbine fuel (ATF). It
also withdrew the road and infrastruc-
from pre-covid levels, primarily due to
the muted demand from China, the
world’s second-largest oil consumer. It
fiscal (FY25), according to the
latest data from the finance
ministry.
Pankaj Chaudhary, minister of
state for finance. PTI

by us, Goyal ture cess levied on petrol and diesel

exports.
anticipates that this downtrend signals
that crude markets may be entering a
Responding to a question
from Member of Parliament
investment” scheme for states
will stand at ₹1.5 trillion for
Union minister of state for finance tipping zone, characterized by weaken- Dilip Saikia in the Lok Sabha, FY25, up from ₹1.3 trillion tar-
tells summit Pankaj Chaudhary on Monday tabled
notifications in the Rajya Sabha scrap-
ing growth dynamics owing to acceler-
ating electrification.
Pankaj Chaudhary , the minis-
ter of state for finance said 23
geted in the interim budget.
To be sure, of this amount, a
ping the levy on sale of domestic crude Prashant Vasisht, senior vice presi- of the 28 states, excluding chunk of about ₹88,000 crore,
Rajeev Jayaswal oil and exports of petrol, diesel and ATF. dent and co-group head, corporate rat- Arunachal Pradesh, Haryana, or 58%, is linked to “outcomes
letters@hindustantimes.com On 18 November, Mint first reported ings, Icra said: “The scrapping of wind- Kerala, Punjab and Telangana, and reforms” by states.
NEW DELHI that the Centre has decided to scrap the The windfall tax was imposed in 2022 as oil prices surged to multi-year highs fall tax is expected to have limited availed the interest-free facil- Reforms states were
windfall tax and that the finance minis- following Russia's invasion of Ukraine. HT impact on oil companies as the same had ity provided by the Union gov- required to meet to claim a

A
ll countries must con- try would shortly issue an order. been reduced to nil on crude oil since 18 ernment in FY25. portion of the interest-free
tribute to sustainable The windfall tax was imposed in 2022 been zero since September, when it zero from 4 March 2023, and the special September 2024 and on petroleum Among the states, the high- loans earlier included those in
development with as oil prices surged to multi-year highs rolled it back. additional excise duty on the exports has products since 29 February 2024. est recipients of the facility the housing sector, incentives
assigned responsibilities based following Russia's invasion of Ukraine, In October, Tarun Kapoor, adviser to been lowered to zero from 1 March “Oil prices have been muted in the were Uttar Pradesh for scrapping old government
on their contribution to the allowing oil and gas producing compa- the prime minister told reporters that 2024. range of $70-75 per barrel over the past ( ₹7,007.93 crore), Madhya vehicles and ambulances,
problem in the first place, nies to make massive profits. weakening crude prices had The special additional excise few months on account of the Pradesh ( ₹5,074.94 crore), reforms in urban planning and
Union commerce minister Piy- The tax is levied in the made the windfall tax irrele- duty on exported jet fuel has weaker-than-anticipated Bihar (₹5,408.88 crore), urban finance, housing for
ush Goyal said on Monday, form of a special additional vant and that the finance been set at zero from 2 Jan- demand from China and Rajasthan (₹4,552.01 crore), police personnel, and setting
underscoring the “polluter
pays” principle at a time when
excise duty, and as addi-
tional excise duty or road Sep
The tax on crude
18 ministry would take a call uary 2024 from ₹1 per litre
on its withdrawal. The tax earlier. The road and
Windfall tax that
/t tepidworld. ₹1,850
growth of rest of the West Bengal (₹4,416.23 crore),
Assam (₹3,181.97 crore), Odi-
up libraries with digital infra-
structure at panchayat and
the 27-nation European Union and infrastructure cess on on crude oil produced in infrastructure cess and “Likewise the crack sha (₹3,085.44 crore), Maha- ward levels for children and
is forcing a carbon tax on the export of fuel. It is oil produced in the country was cut to the special additional was being imposed spreads of diesel, petrol rashtra (₹2,617.70 crore), young adults.
imports, which is expected to reviewed each fortnight, India was cut to 0 zero on 18 September from excise duty on export of till 18 Sep and aviation turbine fuel Andhra Pradesh (₹2,616.27 For loans not linked to spe-
hit developing countries par- based on average prices in ₹1,850 a tonne in the first petrol was brought down to have been muted owing to crore), and Karnataka cific reforms, one criterion
ticularly hard. the preceding two weeks. fortnight of the month. zero from 19 July 2022. weak demand growth amid (₹2,272.87 crore). that is followed is that they
Addressing ministers from 11 The decision to withdraw wind- In line with softening global oil The government had also supply overhang due to which the In July, during her budget would be given for projects
countries at the 29th CII Part- fall tax was guided by the government’s prices, the government had gradually exempted petrol, diesel and jet fuel windfall tax has been low or nil for much speech, finance minister Nir- that are set to be completed
nership Summit in New Delhi, view that this levy has outlived its utility, rolled back elements of the windfall tax. exported from special economic zones of CY2024. Accordingly scrapping the mala Sitharaman said the allo- within the fiscal year.
Goyal said: “When we look at given the fact that the government's The road and infrastructure cess on from windfall tax from 20 July 2022. tax is expected to have limited impact of cations for the Centre’s “spe- For an extended version of
the shared future, very clearly, share of the tax on domestic crude has exported diesel has also been kept at The withdrawal of the windfall tax oil companies.” cial assistance for capital this story, go to livemint.com.
we all have responsibilities
towards the environment,
towards sustainability. But
most countries on this platform
are not the reason for the prob-
lem in the very first place.”
Will Trai’s anti-spam steps delay OTPs? EV makers’ offices searched for
The 11 countries are: Algeria,
Bahrain, Bhutan, Israel, Italy,
Nepal, Senegal, South Africa,
Gulveen Aulakh
gulveen.aulakh@livemint.com
‘localization norms breach’ OTPs.
Why is there a concern over
Cambodia and Qatar. NEW DELHI OTPs not getting delivered?
While a typical Indian con- Manas Pimpalkhare immediate response. Benling

I
ndia’s telecom regulator has sumer gets a handful of text manas.pimpalkhare@hindustantimes.com India could not be reached for
tightened regulations to messages, or SMS-es every day, NEW DELHI comment.
counter spam and unsolic- she’s bound to get at least one This development follows a

T
“The damage to the environ- ited messages. One measure is OTP message a day. India has he Serious Fraud Inves- two-year-long action by the
ment was not caused by the mandating the traceability of over 1 billion mobile phone tigation Office con- ministry of heavy industries
global South or by the less commercial messages from users, which translates into at ducted search opera- against these companies. In
developed or developing coun- senders. This led to speculation least 1 billion OTPs sent on an tions on the offices of EV mak- 2022, MHI started taking
tries, but more by the devel- that OTPs, or one-time pass- average every day. ers Hero Electric Vehicles Pvt. action against EV makers who
oped countries, which enjoyed words, could get delayed and OTP is required as part of Ltd, Benling India Energy and were allegedly flouting PMP
the fruits of low-cost energy to affect transactions initiated by two-factor authentication for Technology Pvt. Ltd, and Oki- norms, and demanded a
develop their economies into consumers such as bank trans- safer financial transactions. nawa Autotech International refund of the subsidies they
large per capita economies,” he fers and online payments. Trai has extended the 1 December deadline to implement The method is used for non-fi- Pvt. Ltd saying they had fraud- had received.
said. The “Partnerships for The Telecom Regulatory traceability of commercial messages to 11 December. MINT nancial transactions as well, ulently availed subsidies The ministry investigated 13
Progress” summit was orga- Authority of India (Trai) has which means the number of under the FAME 2 scheme by Hero Electric, Benling India, companies, and fined six of
nized by CII in collaboration clarified that the issue will not till 30 November. India, Pension Fund Regula- OTPs sent daily could exceed 1 flouting localization norms. and Okinawa are under the them, including Hero Electric,
with the department for pro- arise. On Saturday, it extended PEs are entities that send tory and Development Author- billion. Telecom companies FAME 2 was the Centre’s EV scanner. BLOOMBERG Okinawa Autotech, Ampere
motion of industry and internal the 1 December-deadline to commercial messages to tele- ity and Insurance Regulatory estimate the number at 1.6–1.7 subsidy scheme, where con- Vehicles, Benling India, AMO
trade. India is for environment implement the measure to 11 com subscribers, and they and Development Authority of billion OTPs a day. sumers could buy EVs at subsi- vehicles. Mobility and Lohia Auto.
protection and sustainable December. Will OTPs still get include banks, financial institu- India to raise awareness. If the entities that send OTPs dized prices and manufactur- PMP guidelines, which Among these six automak-
development, which is a shared affected? Mint explains. tions, insurance companies, Will traceability disrupt or the telcos that provide the ers could seek the subsidy mandate the localization ers, AMO Mobility, Greaves
global responsibility, he said, trading companies, and busi- non-spam messages? service do not adhere to Trai’s amount from the government. norms for EV makers, list the Electric Mobility and Revolt
and added that responsibilities What measures has the Tel- nesses. Trai has clarified that mes- rules on message traceability, However, companies can only auto components that may be returned the subsidies with
must be equitable. ecom Regulatory Authority On Saturday, Trai extended sage traceability is not intended OTP delivery can get affected. seek the subsidy amount from imported, and the timeline of interest within a few months.
“This shared responsibility of India taken to curb spam this deadline to disrupt non- Have telcos or entities the government if they comply how these imports will be However, Hero Electric,
towards sustainability, better messages? to 10 Decem- mE X P L A I N E R spam messa- raised concerns on imple- with the scheme’s localization phased out. Okinawa, and Benling did not
supply chains, stable policies, In August, Trai mandated ber. This ges. The pri- menting this measure? norms. The ministry said SFIO refund the subsidy amounts.
will all have to be done with the that all message trails must be means that mary goal is to Telcos have said they were All three companies were investigations revealed that In October this year, Hero
recognition of a common but traceable from 1 November from 11 December, the tracea- enhance the ability to track and ready to implement tools to found to violate the phased several restricted parts under Electric attempted to settle the
differentiated responsibility. 2024. This move is aimed at bility requirements kick in. block spam. While there may ensure traceability of messages. manufacturing programme the PMP guidelines were dues with MHI, which was
While we are all part of the enhancing accountability by Apart from telcos, Trai is work- be some teething issues as ser- However, some PEs and TMs (PMP) guidelines under FAME either directly or indirectly considering the company’s
solution, we will all have to tracking the origin of messages. ing with central and state gov- vice providers adjust to the new have yet to register their com- 2 to avail subsidies worth ₹297 imported from China. request, according to a report
work together. Everybody will To allow for technical upgrades ernments departments, and regulations, Trai has assured plete chain on the distributed crore cumulatively, the corpo- Emailed queries to Navin by the Economic Times citing
have to be given a responsibil- and declarations by principal entities regulated by the that the mandate will not lead ledger technology platform. rate affairs ministry said. Munjal, managing director of government sources.
ity based on their contribution entities (PEs) and telemarket- Reserve Bank of India, Securi- to delays in message delivery or For an extended version of The three companies man- Hero Electric, as well as to Oki- For an extended version of
to the problem first.” ers (TMs), Trai gave them time ties and Exchange Board of disrupt the timely receipt of this story, go to livemint.com. ufacture two-wheeler electric nawa Autotech did not elicit an this story, go to livemint.com.

Steel ministry proposes 25%

m MINT SHORTS lion hectares since sowing began on 1 October, up 6.6%
from a year ago, data from the farm ministry showed on
Monday. Higher planting could help India raise wheat
Potential GDP growth in
the 6.5–7% range, says CEA safeguard duty on imports
MINT
CORRECTIONS AND
CLARIFICATIONS
production and bring down prices that hit a record high BLOOMBERG New Delhi: Taking up the Mint welcomes comments,
CIL among cos selected for last week. By 29 November, farmers had planted rape- concerns of domestic steel suggestions or complaints
seed and mustard on 7.6 million hectares, down from 8 industry, the steel ministry on about errors.
financial incentives: Govt million hectares a year ago, the data showed. REUTERS Monday proposed for a 25%
Readers can alert the
New Delhi: State-owned CIL and Bharat Coal Gasifica- safeguard duty on import of
newsroom to any errors in the
tion and Chemicals Ltd are among companies selected certain steel items. The pro- paper by emailing us, with your
MINT for financial incentives for MahaRERA recovers ₹200 cr posal came at a meeting full name and address to
coal gasification projects.The between Union minister of
financial incentive scheme,
to compensate homebuyers steel H. D. Kumaraswamy and commerce and industry
feedback@livemint.com.

backed by a substantial finan- Mumbai: The Maharashtra Real Estate Regulatory minister Piyush Goyal , persons in the know said. PTI It is our policy to promptly
respond to all complaints.
cial commitment of ₹8,500 Authority (MahaRERA) on Monday said it has recovered Readers dissatisfied with the
crore, is part of the country’s over ₹200 crore from developers to compensate home- response or concerned about
broader strategy to achieve buyers for their losses. The authority also outlined plans New Delhi: India’s potential GDP growth is in the India’s power consumption up Mint’s journalistic integrity may
100 million tonnes of coal to further intensify its recov- range of 6.5-7% and the country should be able to
gasification by 2030. PTI
MINT

ery efforts. It said in an official achieve it on the back of things that done already
5% to 125.44 bn units in Nov write directly to the editor by
sending an email to
statement that it issued 1,163 in the past 10 years, chief economic adviser V. New Delhi: India’s power consumption rose 5.14% year- asktheeditor@livemint.com
warrants to recover ₹705.62 Anantha Nageswaran said on Monday. The Eco- on-year to 125.44 billion units (BU) in November. In Mint’s journalistic Code of
India’s wheat planting up crore across the state and nomic Survey projected India’s GDP to grow at November 2023, power consumption was 119.30GW, as Conduct that governs our
made recovered ₹200.23 6.5–7% in 2024-25, down from a high of 8.2% in per government data. The peak power demand met also
6.6%, rapeseed sowing drops crore from developers on 283 the preceding financial year. PTI rose marginally to 207.42GW in November 2024 from
newsroom is available at
www.livemint.com
Mumbai: Indian farmers have planted wheat on 20 mil- warrants. PTI 204.56GW in the year-ago period. PTI

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LIVEMINT.COM DEALS, TECH & STARTUPS TUESDAY, 3 DECEMBER 2024
MUMBAI 03

m MINT SHORTS Prosus finds growth EverSource Cap’s

HCLTech, Google Cloud launch $1-bn fund bags US
AI-based cybersecurity solutions
New Delhi: IT firm HCLTech on Monday said it has partnered
with Google Cloud to launch AI-driven Managed Detection and
Response solutions aimed at enhancing cybersecurity for global
goldmine in India DFC commitment
enterprises. HCLTech UMDR (Universal Managed Detection and Sneha Shah & Mansi Verma
Response) service will leverage HCLTech’s Fusion Platform and MUMBAI
Google Cloud Security technology to deliver proactive threat
The firm reported a 26% rise in revenues for the six months ending Sep
E
detection and effective threat response. PTI verSource Capital's sec-
ond fund has received an
equity commitment from
Jeff Bezos, Samsung back Priyamvada C US International Develop-
priyamvada.c@livemint.com ment Finance Corp (DFC), said
Tenstorrent in $700 mn bid BENGALURU CEO Dhanpal Jhaveri, as it
ISTOCKPHOTO
prepares to launch a $1-billion

P
rosus’ Group CEO Fabricio second fund in 2025.
Bloisi on Monday expressed DFC, which mainly offers
optimism about the pipeline of debt investments, is expected
investments in India after the to channel equity funding into
investment firm infused $80 EverSource Capital for the
million for a 10.65% stake in supply chain new fund, Jhaveri said in an EverSource Capital CEO
financing startup Mintifi and another interview with Mint. Ever- Dhanpal Jhaveri. MINT
$100 million in Vastu Housing Finance. Source is a private equity firm
The investment firm also reported a that focuses on renewable “Today, about 10% of the
26% rise in revenues to $3 billion for the energy infrastructure. It’s a grid is renewables. By 2030,
six months ending September on Mon- joint venture between the this will be about 25%. By
day. Bloisi’s outlook comes a few weeks Indian private equity firm 2050, my sense is that 50-70%
Amazon.com Inc. founder Jeff Bezos joined Samsung in a after Prosus’ portfolio company-Swiggy Everstone Capital and the of the grid will be renewable.
$700 million bet on Tenstorrent, valuing the AI chip listed on the bourses at a $11.3 billion val- UK-based Lightsource BP. The moment the grid becomes
startup with ambitions of taking on Nvidia Corp. at about uation. In November, DFC made a renewable, volatility
$2.6 billion. Tenstorrent, which hopes to create a chip to try The Netherlands-based investor took debt investment of $50 million increases,” he said. This is
and break Nvidia’s stranglehold on the AI business, raised home more than $500 million when it in Northern Arc’s inaugural because unlike conventional
capital in a funding round led by South Korea’s AFW Part- sold a fifth of its 31% stake in the food Climate Fund, underscoring energy sources, renewables
ners and Samsung Securities, founder and semiconductor delivery company’s initial public offering its interest in India’s renewa- are variable—as sunlight and
pioneer Jim Keller said in an interview. BLOOMBERG (IPO). Its balance stake is now down to ble energy infrastructure. In wind are intermittent—and
25%, which translates to over $2.5 billion Prosus’ Group CEO Fabricio Bloisi. September, DFC’s deputy this poses challenges to grid
of gains. chief executive stability.
AdvantageClub.ai bags $4 mn from “The Swiggy IPO is just the first of months. Other startups include Captain The investment firm maintains that it officer Nisha Bis- DFC is Jhaveri said
many more that we have ahead of us over Fresh, Vastu Housing Finance, Mintifi, is seeing a robust deal pipeline and the wal highlighted storage would be
Axilor Ventures, AFG, others the next 12-18 months. We are very Eruditus and Mensa Brands. diversification across different sectors the institution’s
expected to
crucial, the
channel equity
Gurugram: AdvantageClub.ai, a platform specializing in excited about India where we started Mint exclusively reported on Prosus’ and geographies enables the firm to seek partnership with funding into demand for bat-
employee engagement solutions, has raised $4 million in its latest investing more than 6-7 years ago. interest to invest in Mintifi last month. opportunities. India during a tery capacity
EverSource
funding round led by Axilor Ventures. With this infusion, the Today, we have an ecosystem in India “We are spending much more time in “We do have a global perspective that visit to the coun- potentially reach-
company’s total funding has reached $11 million. The round also where we believe our companies can other countries like Europe, Africa, Latin enables us to seek opportunities in sev- try. Capital for the ing tens or even
saw participation from AFG Ventures, Rippling co-founder Pra- help our other companies eral countries including EverSource new fund hundreds of giga-
sanna Sarkar, Bytez Ventures, and several existing investors. The grow faster,” Bloisi said in a Betting big India, Europe, South Amer- raised $741 mil- watt hours in the
new funds will be used to enhance the company’s AI capabilities, post earnings media call. ica and Brazil,” said Ervin Tu, lion for its next few decades.
including the development of new products in the employee “We started at the right The firm invested The investor took Prosus has backed Prosus’ president. After maiden fund in 2022 from “This by itself represents hun-
engagement and experience space. NITESH KUMAR time and India is a big oppor- $80 mn in Mintifi
(10.65% stake) and
home more than
$500 mn by selling
about 30 Indian
startups and
Swiggy’s successful listing, investors including National dreds of billions of dollars of
tunity and we are going to $100 mn in Vastu a fifth of its 31% deployed over Tu believes that there is Investment & Infrastructure potential investment,” he
crystallize a lot of our value Housing Finance stake in Swiggy $8 bn in the country more value to be unlocked as Fund and British International added.
RaptorX secures ₹4 cr in pre-seed through our India invest- it navigates through various Investment. The fund aims to support
ments over the next year,” he equity stake sales. With the new fund, it is companies involved in static
round from Peak XV Spark, others said, adding that the investment firm is America, and India as these markets have Talking about the average ticket size, zeroing-in on energy storage battery storage, mobile batter-
Gurugram: Fraud prevention software company RaptorX has seeing strong growth and profitability a lot of opportunities. We are in a very Tu highlighted that cheque sizes in India as the next major opportunity, ies for electric vehicles, and
raised ₹4 crore in a pre-seed funding round from Peak XV Spark, across its portfolio companies. good position to keep investing there. can range between $20 million and $200 Jhaveri told Mint. It will look to backup power solutions for
EagleWings Ventures, and Point One Capital, among other inves- Prosus has backed about 30 Indian Despite the ongoing geopolitical ten- million depending upon the stage and back businesses that tackle a commercial buildings and
tors. The round also included participation from Lenskart startups and deployed over $8 billion in sions, we are quite well-positioned to size of the company. However, he added pressing challenge in the sec- industries, particularly in tier 2
founder and CEO Peyush Bansal, Boat co-founder and CMO the country. It anticipates Bluestone, explore the rest of the world and I think that it is difficult to predict if such large tor—grid instability caused by and tier 3 cities where there is
Aman Gupta, and angel investors from Google, the company said PayU and Meesho to be among its poten- we are going to keep succeeding in these opportunities are likely to come in the the growing share of solar and frequent load-shedding.
in a statement. NITESH KUMAR tial candidates to list over the next 18 areas,” Bloisi said. next 12-18 months. wind power, he added. sneha.shah@livemint.com




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Sundeep Sikka RA JASTHAN CO-OPERATIVE DAIRY FEDERATION LIMITED

ED and CEO, “SARAS SANKUL” J. L. N. MARG, JAIPUR – 302017 Ph. No. 2702501-08 : Direct: 0141-2710209
Website : www.sarasmilkfed.rajasthan.gov.in, E-Mail :pur-rcdf-rj@nic.in
Nippon Life India No. : RCDF/Pur/F.(Pkg. Material Items/Equipments)/2024/38184-225
NOTICE INVITING BIDS
Date :- 28th November, 2024

Asset Managment Ltd Single Stage Two Parts unconditional e-Tender/Bids are invited by Rajasthan Co-
Operative Dairy Federation Ltd., Jaipur for the procurement of “Lined Carton 1 Litre
Ghee Packing (UBN No. CDF2425GLRC00923), Lined Carton ½ Litre Ghee Packing (UBN
No. CDF2425GLRC00924), HDPE Laminated Kraft Paper Bag for packing 25 Kg. SMP
(UBN No. CDF2425GLRC00925), Polythene Liner for filling 25 Kg. SMP (UBN No.
CDF2425GLRC00926), Milk Can (Aluminium Alloy) ISI Marked Cap. 40 litre with lid,
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CDF2425GLRC00931), Metalised (Alluminium) Paneer Pouches/Bags for 200 gm/1 kg.
(UBN No. CDF2425GLRC00932) and S/I/C of Liquid Nitrogen Tank of 6000 Litre Capacity
and Supply of Liquid Nitrogen Container of 360 Litre Capacity (UBN No.
CDF2425GLOB00933)” from eligible bonafide manufacturers or their authorized
suppliers as per details given in the respective bid document.
The Complete Bidding Documents can be visited and downloaded from our
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w w w. s p p p . r a j a s t h a n . g o v. i n . E - B i d s s h a l l b e s u b m i t t e d o n l y o n
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04 TUESDAY, 3 DECEMBER 2024
MUMBAI MARK TO MARKET LIVEMINT.COM

S&P BSE Sensex Nifty 50 Nifty 500 Nifty Next 50 Nifty 100 S&P BSE Mid-cap S&P BSE Small Cap
CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE CLOSE PERCENT CHANGE

80,248.08 0.56 24,276.05 0.60 22,835.85 0.66 71,164.35 0.62 25,198.15 0.58 46,555.59 1.05 55,662.71 0.84
PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN PREVIOUS CLOSE OPEN

79,802.79 79,743.87 24,131.10 24,140.85 22,687.00 22,695.40 70,726.85 70,690.20 25,053.95 25,063.55 46,070.85 46,096.44 55,199.86 55,264.17
HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW

80,337.82 79,308.95 24,301.70 24,008.65 22,843.50 22,603.10 71,197.95 70,572.70 25,221.10 24,953.25 46,580.44 45,962.23 55,680.50 54,983.41

Rupee falls 12 paise

Demand slump hurts factories to all-time low of
Harsha Jethmalani
harsha.j@htlive.com Price pinch
India's manufacturing sector momemtum eased in November, hit by
sons are expected aid demand. But Standard Chartered Global Research
Elara Securities (India) checks for the report on 29 November.
festive season indicate demand was However, services growth should
84.72 to a dollar

M
anufacturing activity pricing pressures and elevated competition not broad-based, and only certain hold as better consumption amid a PTI
has slowed amid wor- Headline Purchasing Managers' Index Output Charges Index pockets of consumption fared well. rural recovery boosts domestic trade, feedback@livemint.com
ries of India’s con- 60
Government capital expenditure, and government spending supports MUMBAI
sumption story fiz- which was muted in H1FY25, is purchasing power, said the report.

T
zling out. The season- expected to pick up pace in H2. Mon- Several states have rolled out he rupee depreciated 12
ally adjusted HSBC India etary policy may also be income transfer paise to close at an all-
Manufacturing Purchasing Manag- 40
used to propel demand RIPPLE schemes, which are likely time low of 84.72 against
ers’ Index (PMI) fell to an 11-month and the Reserve Bank of EFFECT to reflect in Q3 activity. the US dollar on Monday, on
low of 56.5 in November from 57.5 in India’s (RBI) rate decision Still, Standard Chartered disappointing macroeconomic
October. A reading above 50 indi- this week is crucial. After MONETARY policy Global Research has low- data and broad strength of the
cates expansion. the disappointing Q2 may be used to
propel demand and
ered India’s FY25 GDP American currency in the over-
20
In November, Indian goods pro- GDP data, the odds of an RBI’s rate decision growth forecast to 6.2% seas markets.
ducers increased selling prices to the earlier-than-expected this week is crucial from 6.9% on weak Q2 Forex traders said Asian cur-
greatest extent since October 2013, rate cut are rising. Meas- numbers. rencies were down after US Disappointing macroeconomic
the survey found. This may have ures to boost the banking MANUFACTURERS Meanwhile, optimism president-elect Donald data drove rupee’s fall. AFP
0 hope that marketing
helped their operating margins, but Jan 2023 Nov 2024
sector’s liquidity may efforts and new on future business pros- Trump’s rhetoric on BRICs
pricing pressures, along with fierce Seasonally adjusted data Source: S&P Global
also be in the offing. product releases pects among PMI survey currency as the move may fur- hary, research analyst at Mirae
competition, hurt demand, dragging However, retail infla- will bear fruit participants increased in ther strengthen the greenback. Asset Sharekhan.
the headline index lower. The rate of tion in October hit a November. Manufactur- Trump on Saturday threat- However, positive domestic
new order intakes in November was Items such as chemicals, cotton, of 6.5%, hitting a seven-quarter low. 14-month high at 6.21%, ers hope that marketing ened a 100% tariff on the BRIC markets may support the rupee
the second-weakest in 11 months. leather and rubber became dearer. The fall was led by the manufactur- above the RBI’s comfort zone. So, efforts and new product releases will bloc of nations if they act to at lower levels. Traders may
PMI survey participants attributed The November manufacturing ing sector even as the services sector everyone will be watching if the RBI bear fruit. The recent capacity undermine the dollar. take cues from US ISM manu-
price hikes to increased freight, PMI reading comes on the heels of a held up. India Inc’s Q2 results also prioritizes growth over inflation. expansion efforts and forecasts of At the interbank foreign facturing PMI data, Choudhary
labour and materials costs. Midway shocker September quarter mirrored this pain, with corporates For now, GDP growth expecta- demand strength also underpinned exchange, the rupee opened at said, adding that dollar-rupee
through the third fiscal quarter, (Q2FY25) gross domestic product pointing out stress in urban con- tions for FY25 have been lowered. upbeat forecasts for output in 2025, 84.59 and touched the lowest spot price is expected to trade
input cost inflation reached its high- (GDP) data released last week. At sumption due to weak real incomes The Q2 manufacturing weakness is said the PMI report. But as things of 84.73 against the greenback in a range of Rs 84.50 to Rs
est since July, but remained below its 5.4%, India’s year-on-year GDP and rural demand yet to recover. unlikely to reverse fully in H2 amid stand, near-term lingering risks can during intra-day trade. It ended 84.95.
long-run average, said the survey. growth missed consensus estimates In Q3, the festive and wedding sea- increased global uncertainty, said a hurt manufacturers’ confidence. the session at an all-time low of “The rupee is in a state of
84.72, weaking 12 paise over its weakness... To keep it competi-
previous close. tive, the RBI would be more
On Friday, the rupee than happy to contain the

KEC set to ride tailwinds of order wins, financial leverage plunged 13 paise
to settle at a fresh
all-time low of
Trump has
threatened a
strength, and was
a dollar buyer on
16th and 17th dur-
84.60 against the 100% tariff on the ing the MSCI
Manish Joshi management has set an ambi- doubled year-on-year even as FY23. As the delta (rate of dollar. inflows when the
Stiff target BRIC bloc of
feedback@livemint.com tious Ebitda margin guidance Ebit growth slowed to 22%. change) in net profit is signifi- Traders said rupee rose to
KEC International has an uphill task of achieving an Ebitda nations if they act 84.23,” Anil
of 7.5% for FY25. To achieve margin of 7.5% in FY25 notwithstanding scale benefits KEC’s net debt including cant, the stock starts to look disappointing
to undermine

K
EC International Ltd this, KEC’s Ebitda margin in acceptances, as of 30 Septem- cheaper in terms of price-to- macroeconomic Kumar Bhansali,
appears well-posi- the second half of FY25 would
Ebitda margin (in %)
ber, stood at ₹5,265 crore and earnings multiples. Based on data and persist- the dollar head of treasury
8
tioned to meet its FY25 need to reach 8.3%, assuming the management expects to Motilal’s FY26 estimates, ent foreign fund and executive
order inflow guidance of a full-year revenue growth of 7 cut this to ₹4,000-4,500 KEC’s shares trade at 24x. outflows also director, Finrex
around ₹25,000 crore. Last 15%. However, this target may 6.3 crore by the end of FY25. The stock has delivered dented investor sentiments. Treasury Advisors LLP, said. “It
6.3
week, it secured three big be challenging, as the highest 6 While brokerage estimates 80% return so far in 2024. India’s manufacturing sector must have recouped some of
orders totalling nearly ₹4,000 Ebitda margin the company 5
for KEC’s FY25 and FY26 This strong performance may growth fell to a joint 11-month the dollars it had sold amount-
crore, bringing its FY25 order has recorded in the past 14 earnings might appear limit sharp near-term upside low of 56.5 in November, ing to $48 billion to date as the
intake to ₹17,500 crore so far. quarters was 7.2% in Q3FY22. 4 aggressive, they become plau- potential. Key risks to KEC’s restricted by competitive con- reserves fell to $656 billion on
Q1FY22 Q2FY25
Its lowest bidder (L1) portfolio Nonetheless, KEC can be a sible when viewed through growth include volatility in ditions and inflationary pres- the previous Friday.”
Ebitda is earnings before interest, tax, Source: Company, Motilal
stands at ₹8,400 crore, sup- potential beneficiary of finan- depreciation and amortization Oswal Financial Services
the lens of financial leverage. commodity prices, particu- sures amid a softer increase in The data from GDP was bad
porting its order pipeline. cial leverage. Its Ebit/pre-tax- For instance, Motilal Oswal larly steel, and execution chal- factory orders, a monthly sur- for the previous quarter but the
The order wins are profit ratio for FY25 was 2.5x, Financial Services has forecast lenges stemming from man- vey said on Monday. current quarter seems better as
expected to drive robust reve- indicating that the interest or marginal drop in interest in H1FY25, accounting for an earnings per share (EPS) power shortages and geopoli- “We expect the rupee to infrastructure output grew
nue growth in FY25 and FY26, cost relative to its Ebit is high. costs can boost pre-tax profits. 59% of Ebit, compared to 75% growth of 82% for FY25 and tical uncertainties. Notably, trade with a negative bias on 3.1%, he said, adding that the
given the typical execution In such cases, even a small For instance, interest cost in in the previous year. Conse- 67% for FY26, even after the 33% of KEC’s order book is strong dollar and FII outflows. rupee’s range for Tuesday is
cycle of 18-24 months. The growth in Ebit with stagnant absolute terms fell marginally quently, H1 pre-tax-profit doubling of EPS in FY24 over from international markets. A recovery in crude oil prices expected to be 84.60-84.80.
may also weigh on the rupee. The dollar index, which gau-
Donald Trump’s tariff threat ges its strength against a basket
Mark to Market writers do not hold positions in the companies discussed here unless otherwise informed may further strengthen the of six currencies, was trading
greenback,” said Anuj Choud- higher by 0.51% at 106.27.

Is MPC doing enough to tame Bansal’s Navi

MINT MACRO TRACKER
inflation? Consumers split gets relief Launched in October 2018, Mint’s macro tracker provides a monthly comprehensive report on the

Gopika Gopakumar &

from RBI on state of the economy, based on trends in 16 high-frequency indicators. For each indicator, the
value in each month is assigned a colour-coding (red, amber and green) to denote where it lies
relative to the five-year average (worse, in line, or better). In October 2024, six of the 16 indicators
Mixed reviews were in red, seven in green, and three in amber— some improvement from two months ago, when
Shuja Asrar Share of respondents (%) who picked each option
Do you think RBI has managed Do you think India has managed inflation
loan curbs six indicators were in green and eight in red. Here’s a glimpse of how each indicator fared.
Now 1 month ago 2 months ago 4 months ago 6 months ago

MUMBAI
inflation well? well in the context of global price surges? Anubhav Mukherjee
(in %) CONSUMER ECONOMY PRODUCER ECONOMY

F
or the past 30 months, the Yes 30 43 (in %) anubhav.mukherjee@htdigital.in
Reserve Bank of India’s NEW DELHI Passenger vehicle sales Tractor sales PMI composite Core* output
(y-o-y change, %) (y-o-y change, %) (y-o-y change, %)
monetary policy commit- No 35 20 30 62
27 8

T
tee (MPC) has been fighting hard 23
he Reserve Bank of India 10 -16.7 20 60 3.1
10 22.4 59.1 6
to bring inflation within its Maybe 26 (RBI) has lifted the ban 0 0
58
4
56
medium-term target of 4%. After on loan disbursal by -10 -10 54 2
raising the repo rate by 250 basis Can't say 9 8 Sachin Bansal-led Navi Fin- -20 -20
52 0
-30
-30 50 -2
points to 6.5% between May Yes No Maybe Can't say serv Ltd, citing remedial -40
Nov 2023 Oct 2024
In each case, respondents were asked to pick one option. Source: Mint readers' Nov 2023 Oct 2024 Nov 2023 Oct 2024 Nov 2023 Oct 2024
2022 and February 2023, the measures taken by the non- *8 core infrastructure industries
The survey was held online and got 987 responses. survey
MPC has kept it unchanged in bank lender.
Broadband subscriber base Domestic air passengers Banks’ non-food credit Rail freight traffic
the last 10 reviews. RBI decided to lift the (y-o-y change, %) (y-o-y change, %) (y-o-y change, %) (y-o-y change, %)
While top ministers have favoured lower inflation and When asked how prices had restrictions with immediate 8.1
16 50 18 12
pressed for lower interest rates, higher interest rates, and only risen for a given set of items, effect, the banking regulator 6.7 14.4 9 -5
40 16
12 6
the central bank governor has 22% support the reverse. While 64% said "everything", while said in a press release on Mon- 30 14
3
20 12
pointed to the risks of cutting the calls for a rate cut have 16% said so for food. day, 2 December. 8 0
10 10 -3
rates early. Meanwhile, do reg- turned louder, MPC is not Nearly half the respondents RBI also said that after mul- 4 0 8 -6
ular consumers think the RBI is expected to cut rates before said the biggest impact of rising tiple rounds of rectification Nov 2023 Sep 2024 Nov 2023 Oct 2024 Nov 2023 Sep 2024 Nov 2023 Aug 2024
doing enough? In its first read- February next year. interest rates has been on home with the non-banking finan-
ers’ survey, Mint found that Governor Shaktikanta Das loans. That said, one in every cial company (NBFC), the RBI
Indians are divided over the has repeatedly warned since four persons also said higher is now satisfied with the com-
MPC’s handling of inflation. the last policy that cutting rates interest rates helped them earn pany's submissions. EXTERNAL SECTOR EASE OF LIVING
35% of close to 1,000 respon- at this juncture is more on their RBI, given the company's
Import cover Rupee vs dollar CPI inflation Core CPI inflation
dents voted that the committee “very very risky Nearly half the deposits. adoption of the revamped pro- (forex reserves in months) (m-o-m change, %) (y-o-y, %) (y-o-y, %)
has not been successful in man- and premature” respondents said Despite dissat- cesses, systems, and its com- 14 11.7 0.5 -0.3 6.2 6
3.7
7
aging inflation, while nearly due to emerging the biggest isfaction with ris- mitment to ensuring adher- 13
0 6 5
30% supported the commit- risks to inflation impact of rising ing inflation, 43% ence to the regulatory guide- 12 5
tee’s actions so far. (The rest outlook. Das’ respondents said lines, especially on ensuring -0.5 4
interest rates 11 4
were unsure.) words proved India has man- fairness in loan pricing, has 10 -1 3
The survey was held in the prescient as cost- has been on aged inflation well lifted the restrictions placed
3
Nov 2023 Oct 2024 Nov 2023 Oct 2024 Nov 2023 Oct 2024 Nov 2023 Oct 2024
second half of November, and lier vegetable pri- home loans in context of the on the non-banking lender.
Mint readers were asked to vote ces tipped retail global price surge. On 17 October 17, RBI scruti- Labour-intensive sector exports Trade balance Real rural wages Labour force participation rate
online. Hence, the findings are inflation (CPI) for The MPC has nized Navi Finserv and three (y-o-y change, %) (as a % of total trade) (y-o-y change, %) (in %)
16 0 2 42
not representative of the popu- October to beyond RBI’s been trying to tame inflation other NBFCs, citing material 12 15.4 -25.7 1.5 0.3 41.2
41.5
lation. Almost 66% of them threshold limit of 6%. since supply disruptions in the supervisory concerns related 8 -10 1
4 0.5 41
were salaried individuals. While MPC’s decision not to wake of the covid outbreak to loan pricing practices. 0 -20 0 40.5
The six-member rate-setting cut interest rates may not align kept inflation above the 6% tol- Navi Finserv, DMI Finance, -4 -0.5
-30 40
panel is likely to keep the repo with the government’s wish, it erance band for three consecu- Asirvad Micro Finance Ltd -8 -1
rate unchanged for the elev- seems to be in line with popular tive quarters. The Ukraine war (backed by Manappuram Nov 2023 Oct 2024 Nov 2023 Oct 2024 Nov 2023 Sep 2024 Nov 2023 Oct 2024
enth straight time this week demand. Nearly 80% of also pushed up commodity pri- Finance), and Arohan Finan- For each indicator, an average band (shown in grey) is constructed around the five-year average value. The size of the grey band rises with volatility. Values falling above this band
despite the plunge in Septem- respondents said the inflation ces, keeping inflation beyond cial Services Ltd were barred are in green, those falling below are red, and those within this band are coded amber (the red/green coding is reversed for inflation). While calculating the five-year average, data for
some indicators for April-May 2020 and 2021 have been removed to eliminate lockdown-induced skews in the trend. All data as of 1 December 2024.
ber quarter growth to 5.4%. was high to very high. Only 2% RBI's target. from sanctioning and disburs- Source: Centre for Monitoring Indian Economy, Bloomberg, Mint calculations
Nearly half of the total of the respondents rated infla- For an extended version of the ing new loans after the close of Data: Payal Bhattacharya; Graphics: Paras Jain
respondents surveyed tion as low or very low. story, visit livemint.com business on 21 October.
LIVEMINT.COM CORPORATE TUESDAY, 3 DECEMBER 2024
MUMBAI 05

Riju Raveendran moves NCLT

Raveendran seeks to defend his stand on the source of the ₹158 crore raised to settle Byju’s dispute with BCCI
Krishna Yadav scheme involving unaccounted The SC also mandated that the ₹158
krishna.yadav@livemint.com money. They argued that the settle- crore settlement amount be depos-
Netflix may not air Anushka Sharma’s Chakda Xpress. AP NEW DELHI ment was tainted as it involved stolen ited into an escrow account overseen
money and questioned how Riju Rav- by the Committee of Creditors.

OTTs shelve shows R

iju Raveendran, the largest
shareholder of troubled edtech
company Byju’s and brother of
eendran was able to pay ₹158 crore, It directed the BCCI and Byju’s to
when the brothers have claimed they file fresh settlement pleas with the
don’t have any money to NCLT under the process
MONEY
over content quality the founder, Byju Raveendran, has
approached the insolvency tribunal
on Monday, seeking to be included in
pay the lenders, to whom
they owe ₹8,000 crore.
NCLT is hearing multi-
MYSTERY
prescribed by Insolvency
and Bankruptcy Code
(IBC). The BCCI, an oper-
the bankruptcy case deliberations ple pleas in the Byju’s THE lenders alleged ational creditor, initiated
to avoid bigger losses involving Byju’s, its lenders and the
Indian cricket board.
Riju Raveendran’s counsel urged
insolvency case, includ- the money used to
settle BCCI due was
ing a settlement plea filed sourced through
by the BCCI. The cricket round-tripping
insolvency proceedings
after the edtech firm
defaulted on payments
Lata Jha their target audiences. How- the National Company Law Tribunal board seeks to withdraw under a 2019 sponsorship
lata.j@htlive.com ever, cancellations after the (NCLT) to allow him to present his its insolvency case against NCLT refused to deal, which included
entertain plea,
NEW DELHI shoot are the last resort, given defence against allegations made by Byju’s after receiving ₹158 saying fund source Byju’s branding on the
that a significant amount may Byju’s lenders, particularly Glas crore as settlement. probe falls under I-T Indian cricket team’s jer-

V
ideo-streaming plat- have already been spent. Trust, regarding the source of the NCLT directed Byju’s lenders to file objections to Raveendran’s plea. REUTERS This is the second set- and ED jurisdiction seys. It had extended until
forms that were long Prime Video, Disney+Hot- ₹158 crore he raised to settle the dis- tlement attempt between November 2023.
accused of indulging star and Netflix didn’t respond pute between Byju’s and the Board of plea, saying determining the source the settlement funds were personally Byju’s and the BCCI. Byju’s failed to fulfil its
filmmakers who dished out to Mint’s queries on specific Control for Cricket in India (BCCI). of funds lies within the jurisdiction of raised through the sale of shares in In October, the Supreme Court financial obligations, prompting the
long-format shows running shows or the overall trend on The lenders alleged that the ₹158 income tax (I-T) authorities and Byju’s parent company, Think & quashed an earlier agreement on a BCCI to attempt encashing a ₹140
into several hours and epi- quality control. crore used to settle dues with BCCI Enforcement Directorate (ED). Learn Pvt. Ltd., between May 2015 plea by Glas Trust, overturning the crore bank guarantee and filing an
sodes without offering any “While the financial impli- were sourced through round-trip- The NCLT directed Byju’s lenders and January 2022. National Company Law Appellate insolvency petition with the NCLT,
compelling content, have now cations of shelving or reshoot- ping and were “tainted”. The NCLT to file objections to Raveendran’s plea However, the lenders alleged that Tribunal (NCLAT)’s approval of the which admitted the case on 16 June.
not just tightened the purse ing content can be significant, bench in Bengaluru expressed reser- and adjourned the hearing. the funds used for the BCCI settle- settlement and reinstated the insol- For an extended version of the story
strings but are also making they are weighed against the vation about accepting Raveendran’s Riju Raveendran had claimed that ment were part of a round-tripping vency proceedings. go to livemint.com
greater effort to ensure quality long-term value of delivering
standards are met in whatever high-quality and engaging sto-
programming they put out. rytelling. We would not like to
For instance, Netflix, which present poor quality content
had announced an original to our users in any case,” Man-
film titled Chakda Xpress star- ish Kalra, chief business offi-
ring Anushka Sharma, has no cer, ZEE5, said. Strong pre-
plans of launching it, with peo- production planning, rigorous
ple familiar with the develop- creative evaluations, and stra-
ment confirming the movie tegic collaborations with sea-
exceeded the
budget without Streaming sites
soned talent
ensure projects
Inclusion, Respect, Empowerment for
turning out great. are increasingly at align with audi-
The American loggerheads with ence preferences
streaming plat- filmmakers over a from the outset,
form had earlier Kalra said. “At
show’s or film’s
pulled the plug on ZEE5, efficient
a murder mystery acceptance with project manage-
called Penthouse target audiences ment and budget
directed by Abbas optimization are
Mustan and integral to our
Baahubali: Before the Begin- content strategy. We empha-
ning, a spin-off of the action size meticulous planning from
film franchise. the outset, ensuring alignment
According to media reports, on creative vision, timelines,
the fate of Amazon Prime and budgets with all stake-
Video’s Gulkanda Tales is also holders. If any project goes
uncertain, as the platform asks over budget without mutual
for reshoots, unhappy with the agreement, we would defi-
product. In an interview with nitely like to build accounta-
Film Companion earlier this bility with our partners,” he
year, actor Imran Khan said he emphasized.
was working with filmmaker The impact of reshooting or
Abbas Tyrewala on a spy series shelving shows is considera-
that was in the early stages of ble, as it includes payments to
development at Disney+ Hot- cast and crew, set design and
star but fell by the wayside. post-production work, Nitin
Producers and content cre- Gupta, chief content officer of
ators said reshoots and post- Punjabi, Haryanvi and Bhoj-
production delays are com- puri content provider Chaupal
mon, as is shelving a project said. “Shelving a project can
that has been in development help avoid bigger losses from a
for over a year, as OTTs clash poor-quality show,” he added.
with filmmakers on whether a For an extended version of
show or a film would work for the story go to livemint.com

Nayara plans retail

fuel outlet growth
Rituraj Baruah
rituraj.baruah@livemint.com
NEW DELHI

R
osneft-backed Nayara
Energy Ltd is planning
to increase the number
of its retail fuel outlets with a
focus on rural areas and new
highways, even as it explores
ways to expand its compressed
natural gas (CNG) business, its
chief marketing officer Mad- The company is also looking
hur Taneja said. to expand its CNG business.
The refining and oil-mar-
keting firm has 6,500 pumps and boost business with exist-
across Gujarat, Maharashtra, ing customers and improved
Rajasthan, Karnataka, Tamil services backed by technology
Nadu, Kerala, Andhra Pradesh, and the evolution of new busi-
Odisha and Telangana. “You ness models such as ‘deliver to
can look at our past perform- home’. “We will pivot our busi-
ance and do your numbers. ness on two levers. One, con-
We are shy of making claims tinue expanding the network
and trying to chase the num- so that we make this particular
bers. But, if our past perform- product accessible, as conve-
ance is a barometer, you would nience and accessibility are
see us growing to take a fair going to be the mainstay. Hav-
share of the market. It is look- ing said that, it is not only
ing extremely strong, so you rural. It’s (retail) going to grow
can expect us to definitely par- along new highways due to a
CBC 38117/13/0030/2425

ticipate and take a fair share.” lot of investment in infrastruc-

In 2017, Ruias-owned Essar ture. The second pivot will be
Group sold Essar Oil, its refin- around the existing custom-
ing and fuel retailing business, ers. We see millions of transac-
to Russian oil giant Rosneft tions happening, upwards of
and an investment consortium 150 million every month (at
led by commodity trading firm Nayara outlets). And the trans-
Trafigura and UCP Investment actions are important for us.
Group for ₹86,000 crore. Fol- These transactions will grow.
lowing the deal, Essar Oil was It’s going to be about how we
rebranded as Nayara Energy . use technology to bring in that
Taneja said the company delight with the customer.”
will look at expansion with the For an extended version of
addition of new retail outlets the story go to livemint.com
06 TUESDAY, 3 DECEMBER 2024
MUMBAI CORPORATE LIVEMINT.COM

HUL bets growing wealth will MapMyIndia under lens for

biz transfer to founder’s son
broaden spending avenues FROM PAGE 1

chairman and managing

director Rakesh Verma, the
B2C business is not more than
₹50 lakh in revenue.
The company sells over 50 brands in India across categories like detergents, foods and others Rohan Verma would own
90% of the new venture, while
MapMyIndia will spend ₹10
Suneera Tandon ling, and spending on experiences such lakh to acquire 10% equity and
suneera.t@htlive.com as concerts. Several large companies invest ₹35 crore through com-
NEW DELHI across categories such as liquor and real pulsorily convertible deben-
estate are reporting an uptick in pre- tures (CCDs).

F
ast-moving consumer goods mium consumption. “As the consumer business
maker Hindustan Unilever Ltd Affluence and convenience are also requires a dedicated focus to
(HUL) recently unveiled its driving up demand for home appliances build, Rohan Verma, CEO and
roadmap for the next couple of such as washing machines and micro- executive director of MapMy- MapmyIndia, which provides data to Apple Maps and Amazon’s
years, highlighting a significant wave ovens. Such trends help compa- India, proposed to the board to Alexa, ended FY24 with ₹379.4 crore revenue. ISTOCKPHOTO
shift in Indian consumer preferences. nies such as HUL sell more washing liq- fund a new venture outside the
While HUL’s core mass-market uids and convenience foods. company,” Rakesh Verma said pro-MapMyIndia rather than November. “The company is
brands will remain a significant portion For instance, HUL’s liquid detergent in a prepared statement on 1 anti-MapMyIndia,” he said.” confident that its leadership
of its portfolio, the company anticipates business under Surf Excel grew three- December. “Capital allocation and suc- team, aided by Mr Rakesh
a substantial shift in the coming years in fold between 2019 and 2023; fabric con- MapMyIndia shares closed cession planning are at the Verma’s guidance, is capable
several other categories that it projects ditioner brand Comfort, too, grew sev- 3.5% lower at ₹1,692 on Mon- heart of what boards are enough.”
will double or even quadruple in size, en-fold between 2014 and 2023. day even as the Sensex ended tasked with. In this instance, Since the transaction
driven by India’s rising GDP. The company said consumer expec- 0.6% up at 80,248 points. the company has side-stepped involves MapMyIndia infusing
According to the company, that’s tations from its laundry products are On Monday evening, over a leadership change. On capi- ₹35 crore through CCDs,
because Indian consumers are increas- “evolving” thanks to wider wardrobes, two dozen analysts and inves- tal allocation, it outsourced the which is less than 10% of the
ingly seeking advanced formulations and growing ownership of washing tors quizzed the management decision-making,” said Amit company’s revenue of ₹379.4
and convenient formats, leading them machines in India is prompting the in a nearly two-hour interac- Tandon, founder and manag- crore, this transaction would
to transition from traditional soaps and HUL anticipates a substantial shift in the coming years in several categories that it switch from powder to premium liquids. tion done to assuage concerns ing director at proxy advisory not need approval from the
detergent powders to body wash and projects will double or even quadruple in size, driven by India’s rising GDP. MINT HUL plans to expand the reach of its liq- about minority shareholders firm Institutional Investor minority shareholders of Map-
liquid detergents. uid detergents going forward. getting a raw deal Advisory Services MyIndia, Verma added.
More households are expected to with India’s evolving economic land- incomes by driving premiumization It also segmented its portfolio into because of this As per the India Ltd (IiAS). As this is a related-party
move up the $8,500-40,000 annual scape, leveraging structural shifts in across its portfolio while catering to “core” portfolio, “future core” brands transaction. co-founder, chair C o n s u m e r transaction, MapyMyIndia’s
income bracket by 2030 versus 2018, income distribution and consumer diverse consumer segments. Over 80% that are ripe for premiumization, while “I don’t know and MD Rakesh business was board and the audit committee
even as those with less than $4,000 behaviour, they added. of growth is expected to stem from the also identifying and chasing future what data the Verma, the B2C becoming a “dis- should tell shareholders the
annual income shrink dramatically by In the presentation, HUL identified future core and market makers (leading trends via “market makers”. independent traction”, Verma potential of the new business,
business is not
the end of the decade, HUL said in a pre- six ‘high-growth’ segments as long-term trends), complemented by core catego- “Premiumization continues to be the board was pro- told Mint. “And said V. Balakrishnan, a former
sentation filed with the stock exchanges bets. These include premium face care, ries that enhance penetration,” Motilal top agenda,” said Manoj Menon, head- vided and what more than ₹50 hence, after chief financial officer at Info-
on its ‘capital markets day’ on Friday. premium hair care, body wash, home Oswal’s analysts said. research and FMCG analyst at ICICI they used,” said lakh in revenue speaking with sys Ltd and founder of Exfinity
HUL sells more than 50 brands in Securities. “The company reiterated Nilesh Shah of consultants and Ventures, a venture capital
India across detergents, foods, FUTURE CALLS its focus on accelerating portfolio Envision Capital, investors we fund.
soaps, shampoo, toothpaste, cos- enhancement to capture premiumi- asking the management why decided that in the interest of “On the face of it, this looks
metics, and ice cream, among oth- MORE households AS more households HUL identified six IT also identified zation while core will grow in line the transaction does not have a the company, it is better we go like the shareholders of Map-
ers. The company’s products are are likely to move up move to higher
the $8,500-40,000 income brackets,
‘high-growth’
segments as long-
10 brands from
its portfolio that
with the market,” he said. royalty-sharing agreement with this transaction. MyIndia are taking all the risks
priced from ₹1 and ₹10 shampoo annual income they up their spends term bets which it said are ripe for This is already visible in catego- considering MapMyIndia is PhonePe, along with other with limited upside in the form
sachets to ₹800 lipstick. bracket by 2030 on personal care includes wellbeing premiumization ries such as beauty and personal transferring one of the con- investors, was not keen on us of their equity stake in the new
Analysts at Motilal Oswal said in a care, where new-age brands as well sumer-facing brands Mappls accumulating losses because company. The best way would
report released Monday that, as the entry of large global brands is to the new entity. of the consumer business,” have been to start as a 100%
clearly, the company wants to be “rele- care liquids, condiments and mini The move ties in with broader shift in driving up demand for premium skin- MapMyIndia founder Verma said. subsidiary and then get exter-
vant” within India’s large consumption meals, and well-being. It also identified consumer habits. care products. Affluent consumers are Verma, 71, differed. “I’ve been “Rohan’s departure as CEO nal validation so that the whole
theme, which comprises income pros- 10 brands from its portfolio that it said Households moving to higher income willing to drop anywhere between in business for 30 years, and I could create a leadership vac- value creation would reside
perity, a young population with a are ripe for premiumization. brackets are upping spends on personal ₹1,000 and ₹3,000 on lipsticks and pri- can tell you I’ve never done uum,” JM Financial analysts with the shareholders of Map-
median age of under 32-years, and “As India transitions from a pyramid care. Consumers in large metros are also cey skin treatments. HUL sells brands business at the expense of Abhishek Kumar, Anuj MyIndia,” said Balakrishnan.
increasing digital and social connectiv- to a diamond-shaped income structure, leaning towards healthy foods. They are such as Lakme, Pond’s, Simple, Love good corporate governance. Kotewar and Nandan Arekal For an extended version of
ity. HUL remains “strategically aligned” HUL capitalizes on rising disposable also buying more goods online, travel- Beauty and Planet, etc. This business transaction is wrote in a note dated 30 this story, go to livemint.com

Shipping industry likely to get ₹25,000 crore boost Centre identifies

FROM PAGE 1 focus on the maritime sector.
The second person quoted
Pointing out that growth of
the maritime sector is a strate-
break-even period can be long,
especially for IWT (inland
2 mn hectares for
US, Europe, and Asian markets, above said the MDF was earlier gic imperative for India’s waterway transport) infrastruc-
the first person cited above said
on the condition of anonymity.
The Centre would stand
planned to be announced as
part of the government’s 100-
day agenda, but inter-ministe-
export-oriented growth
agenda, Mihir Shah, partner,
transport and logistics at audit
ture and fleet expansion. It is
here that MDF could provide
longer debt repayment peri-
mega pulses boost
guarantor for all investments rial consultations suggested and consulting firm EY India, ods, allowing projects more FROM PAGE 1
into the MDF and would also be that the groundwork for mobil- said, “Systematic support time to achieve profitability.
its biggest participant. The ising global investors into the through MDF should help cata- MDF may be set up on the data from ministry of statistics
finance ministry is working out fund should be done ahead of lyse development across the lines of the country’s youngest and programme implementa-
the Centre’s share and giving operationalising the scheme. maritime value chain and development financial institu- tion (MoSPI). Inflation in rural
final touches to the proposal The person added that dis- enhance India’s maritime sup- tion, the NaBFID, which was areas at 6.68% was higher than
based on suggestions given by cussions were also inconclusive ply chain resilience and global established in 2021. the 5.62% recorded in urban
the shipping ministry, the first on the size of the fund and the competitiveness.” In fact, an earlier proposal regions.
person added. extent of equity contribution Pushpank Kaushik, chief was to set up MDF as a dedi- The watershed areas to grow
Mint had earlier reported by the government. “Sugges- executive officer of Hyderabad- cated vertical under NaBFID, pulses have been identified in
about the MDF to be structured tions are for keeping minority The MDF is expected to meet the long-term funding required for based global shipping and but given the specialized Madhya Pradesh, Maharashtra,
as a corporate entity, with the or equal government holding putting up shipbuilding infrastructure in the country. logistics firm Jassper Shipping, nature of funding and the need Rajasthan, Uttar Pradesh,
government holding a minority in the funding entity with said MDF would help open ave- to provide large-scale, focused Tamil Nadu, Gujarat, Karna-
stake of at least 26%, while the stakes around 26% or going manufacturing, the fund would ₹25,000 crore spread over a nues for domestic business funding to the sector, a dedi- taka, Bihar and West Bengal,
majority shareholding will be higher up to 50% while keeping also promote development of seven-year-period, according owners to explore maritime cated fund or entity has been among others.
offered to multilateral financial fund size around cruise tourism in the country to the first person. and logistics as an industry for considered the best option. “The sowing of pulses on In FY25, govt aims to produce
institutions and global funds. ₹20,000-25,000 crore,” this by funding the creation of req- The second person said that investment and growth. “How The primary focus of the new these identified lands is nearly 30 mt of pulses. AP
The fund is being set up to person said, also requesting uisite infrastructure, said the the fund would explore giving India has been a pioneer in fin- entity would be to promote expected to start from next
provide various forms of finan- anonymity. first person cited above. long-term loans beyond the tech, I believe the govern- manufacturing of ships of all kharif season. With this, we are credited with revolutionizing
cial support, including debt, Queries sent to the minis- Further, it would support 10-year period to 15-25 years to ment’s support and industry’s make and sizes within the hoping to a have better produc- moong production.
equity, viability gap funding tries of finance, and ports, ship- mechanization and capacity enable the credit period to be in willingness to grow will make country and make India a tion forecast for 2025-26 crop The government has set a
(VGF), and buyer credit. It will ping and waterways remained expansion of existing ports line with the life of a vessel, maritime the biggest force of global hub for ship manufac- season,” the second person target to produce nearly 30 mt
be similar to the National Bank unanswered till press time. through PPPs (public-private which is around 30 years. It the nation,” he said. turing. Currently, India has less quoted earlier said. of pulses, 25% higher than
for Financing Infrastructure The MDF is expected to partnerships), dredging activi- would also consider tax sops Another official from PwC than 1% share of the global ship- Queries emailed to the min- FY24’s target.
and Development (NaBFID), meet the long-term funding ties, development of inland that similar funds in countries India said on condition of ano- building market, which is dom- istries of consumer affairs, agri- The sowing area of pulses in
which provides long-term required for shipbuilding infra- waterway systems, and coastal such as Norway, Korea, Japan nymity that maritime projects inated by China, South Korea culture and rural development the kharif season of 2024
funds to infrastructure pro- structure in the country. Apart shipping. The initial plan for extend to domestic ship lessors typically involve high upfront and Japan, according to data remained unanswered till press increased to 128.10 lakh hec-
jects, but will have a dedicated from promoting domestic the fund is to have a corpus of and ship management firms. capital expenditure, and the from the shipping ministry. time. tares from 119.27 lakh hectares
The first of the two people in 2023. The average yearly
quoted earlier said the land area in five years through
identification process is just an March 2023 was 136.02 lakh

Building Apple products has become a side hustle for BYD initial part of the comprehen- hectares.
sive plan to make India self-re-
liant in pulses
Area under arhar (tur) rose to
46.50 lakh hec-
production by The targeted tares in 2024
FROM PAGE 1 diversify its suppliers away In its early days, BYD was client. The company said it Jabil for about $2 billion. 2027. “Farmers higher acreage for compared with an
from Foxconn, the Taiwanese often accused of imitation and had successfully entered the One of BYD’s responsibili- will now be pulses in 2024 average of 45.55
the Xiaomi phones and sup- assembler that makes the most landed in litigation with global supply chain for the client’s ties is helping Apple diversify encouraged to follows a decline lakh hectares and
plies some technology for its iPhones and iPads. BYD isn’t leaders such as Sony and Fox- core products and started mass its China-centric manufactur- cultivate pulses 40.74 lakh hec-
in production
cars, Xiaomi founder Lei Jun in line to assemble completed conn. Legal battles between production, a passage that ing, and it has helped Apple in such as tur, urad, tares in 2023.
said in April, describing BYD iPhones, according to industry BYD and Foxconn, typically industry insiders said referred countries such as Vietnam. and masur on over the past Urad was sown in
founder and chairman Wang executives and analysts, but it involving allegations of trade- to Apple and BYD’s produc- BYD already makes smart- these watershed three years 30 lakh hectares,
Chuanfu as a friend. is taking a bigger role in secret theft and employee tion of iPads. phones in India for brands lands. They will down from 32.60
Another BYD customer is iPhone parts such as the tita- poaching, date back nearly Today, BYD Electronic, such as Xiaomi and could receive incentives lakh hectares in
Huawei, which makes both nium frame. two decades and continue to listed separately on the Hong expand there if asked by such as quality seeds, training, 2023. The targeted higher
phones and EV software and BYD has said it also works this day. Kong stock exchange, has Apple, said Counterpoint’s and farming equipment.” acreage for pulses in 2024 fol-
sometimes displays phones with Apple’s rival Samsung, BYD’s relationship with taken responsibility for some Lam. According to B.B. Singh, lows a decline in output over
and cars side-by-side in its supplying hinge-related com- Apple began around 2009, of Apple’s sensitive work, such BYD said its next big thing former additional director gen- the past three years. Output fell
showrooms. ponents to some of Samsung’s when BYD started processing as titanium parts for the frame would be developing AI-pow- eral (pulses), Indian Council of to 24.2 mt in FY24 from 27.3 mt
Cook, on a visit to Shanghai foldable phones. components, according to a of Apple’s latest iPhone Pro ered robots together with Agriculture Research, these in FY22, according to data from
in March, met BYD’s Wang at BYD made news recently BYD’s task is to help Apple company history published models, said Ivan Lam, an ana- Nvidia for factories. initiatives would not sustain “if the ministry of agriculture.
Apple’s office, where Wang when its third-quarter reve- diversify its China-centric recently. It gradually won lyst with Counterpoint “It is like we are raising farmers don’t receive a guaran- As a result, imports surged
and his staff showed Cook a nue of about $28 billion manufacturing. BLOOMBERG Apple’s trust and was tapped to Research. The company likes many fish in a pool, and hon- teed price for their produce, 89.96% to a record 4.73 mt in
miniature model of the iPad exceeded Tesla’s figure of provide structural compo- to boast that its robot drillers estly, we’re not entirely sure like rice and wheat”. FY24, up from 2.49 mt in FY23
production system. Cook said $25 billion, the first time Wang, a chemist by train- nents such as metal, glass, can carve patterns on the sur- which area of the market will “If the government assures due to rising demand and
on Chinese social media that BYD had come out on top. ing, started BYD three decades ceramics and sapphire as well face of an eggshell without mature in the future,” said them that their pulses would be insufficient domestic output,
BYD was among the Apple The feat was possible ago as a battery maker, and the as assembly services, accord- cracking it. BYD battery executive Wang purchased at a fixed price, Union minister of state for agri-
suppliers “pushing the bound- because of BYD Electronic, company received an invest- ing to the book. It has used acquisitions to Haoyu at an event this year, farmers would start cultivating culture & farmers’ welfare
aries of what’s possible.” the company’s contract- ment in 2008 from Warren In its 2019 annual report, expand, including the pur- citing the company founder’s pulses even on their traditional Ramnath Thakur said in a reply
For Apple, which aban- manufacturing arm, which Buffett’s Berkshire Hathaway, BYD Electronic highlighted a chase of facilities in two Chi- philosophy. “When a fish agricultural lands, which are in Lok Sabha on 30 July.
doned hopes of making its own had revenue of about $6 bil- which is also an Apple inves- breakthrough in its business nese cities last year from matures, we can scoop it out.” primarily used for rice and For an extended version of
EV, working with BYD helps it lion in the quarter. tor. with a major North American U.S.-based Apple supplier © 2024 DOW JONES & CO. INC. wheat cultivation,” said Singh, this story, visit livemint.com.
LIVEMINT.COM CORPORATE TUESDAY, 3 DECEMBER 2024
MUMBAI 07

Chairman
Hamied’s What led Info Edge to file Samsung’s plea to
stay ₹1,213-cr tax
nieces
exit Cipla
an FIR against Rahul Yadav demand restored
Krishna Yadav
PTI krishna.yadav@livemint.com
feedback@livemint.com New Delhi
New Delhi Apart from the 4B Networks founder, the FIR also names several key executives of the firm
I
n some relief for Samsung

S
amina Hamied and India, the Delhi high court
Rumana Hamied, part of Priyamvada C. investigating agency would need to on Monday overturned an
the promoter group at Priyamvada.c@livemint.com prove the alleged misuse of funds and order by the Income Tax
drug major Cipla, on Monday Bengaluru suspicious financial transactions. “The Appellate Tribunal (ITAT) that
exited the pharmaceutical agencies would be required to establish had dismissed the company’s

I
company by selling their 1.72 % nvestors rarely turn against the money trail and link the person to the plea to stay a ₹1,213 crore tax
stake for ₹2,111 crore through founders they back, but Info Edge siphoning.” demand for the assessment
open market transactions. (India) Ltd has taken an unusual Have there been other similar year 2021-22. A division of
Singapore government, step. Last week, the consumer inter- cases? South Korean electronics
Societe Generale, Abu Dhabi net group filed a first information While this is one of the first instances giant Samsung Electronics Co ITAT had dismissed Samsung’s
Investment Authority, BNP report (FIR) against Rahul Yadav, of an investor filing an FIR against a Ltd, Samsung India had plea to stay the tax demand
Paribas, BofA Securities, Citi- founder of its portfolio company 4B portfolio company, corporate govern- sought relief from the tribu- issued to it on 22 Nov. REUTERS
group, Morgan Stanley, Gold- Networks, and several key executives, ance lapses at Indian startups have trig- nal’s earlier decision.
man Sachs, Norges Bank, UBS, alleging misuse of company funds. gered legal cases in recent years. A bench comprising justices escalate the matter to the
and Copthall Mauritius Those named in the FIR include Devesh In 2022, BharatPe’s parent filed a case Vibhu Bakhru and Swarna Delhi high court, which ruled
bought stakes in Cipla. Singh, Pratik Choudhary, and Sanjay with the Economic Offences Wing Kanta Sharma restored Sam- in its favour, setting aside the
According to the block deal Saini (EOW) against former managing sung’s stay application and tribunal’s decision.
data available on the National While Info Edge clarified in an director Ashneer Grover and members directed ITAT to decide on the Samsung India has a history
Stock Exchange (NSE), Samina exchange filing that the move would not of his family, alleging financial miscon- matter expeditiously on its of tax disputes with Indian
sold 8.95 million shares of materially affect its business operations, duct. The case led to the EOW filing a merits. authorities. In 2023, the
Cipla, while Rumana Hamied the FIR signals a rare showdown Info Edge has clarified in an exchange filing that the FIR against Rahul Yadav and FIR. The startup later dropped the legal ITAT had rejected Sam- Directorate of Revenue Intelli-
offloaded 4.94 million shares, between an investor and a portfolio others of its portfolio firm would not materially affect business operations. action and reached a settlement with the sung’s plea on 22 November, gence (DRI) issued the com-
amounting to a 1.11% and 0.61% company founder. Mint breaks down Grovers. calling it “premature”. The tri- pany a show-cause notice,
stake, respectively. the development. Who is Rahul Yadav? tions with Info Edge, which had flagged Last year, car servicing startup GoMe- bunal argued that Samsung alleging customs duty evasion
The shares were disposed of What led to the FIR? Rahul Yadav rose to prominence in concerns about financial transparency chanic’s investors, including Peak XV had not demonstrated any amounting to ₹1,728 crore
at an average price of ₹1,518.75 The dispute dates back to early 2023, 2012 when he founded Housing.com, and cash burn. Partners, Orios Venture Partners, and immediate recovery actions (approximately $212 million).
apiece, taking the combined when 4B Networks, a real estate-fo- securing ₹550 crore in a funding round What are the implications of this Chiratae Ventures, filed a complaint initiated by tax authorities at According to DRI, Samsung
transaction value to ₹2,110.76 cused platform led by Yadav, failed to led by Japan’s SoftBank just two years case? with Haryana EOW against its founders, the time of filing or hearing the misclassified remote radio
crore. provide critical financial information later. However, his meteoric rise was According to Jasmine Damkewala, alleging fund misappropriation. application. heads, a type of networking
After the stake sale, the requested by Info Edge, which owns a marred by controversies, including con- senior partner at Circle of Counsels, the Fashion e-commerce startup Citing the absence of an equipment, to claim undue
combined promoter and pro- 65% stake in the company. frontations with investors. In 2015, the FIR highlights Info Edge’s Zilingo’s co-founder and imminent threat, ITAT had exemptions from basic cus-
moter group holding in Cipla By June 2023, Info Edge had initiated IIT-Bombay dropout reportedly sent an commitment to transpar- CAUSE OF ex-CEO Ankiti Bose filed a dismissed the company’s toms duties.
has come down to 29.2% from a forensic audit following repeated fail- angry email to Shailendra Singh, man- ency at its portfolio compa- DISPUTE criminal complaint against request. For an extended version of
30.92%. ures to obtain financial details and dis- aging director of Sequoia Capital (now nies. It may also help the fellow founder Dhruv This prompted Samsung to this story, go to livemint.com.
DSP Mutual Fund (MF), Axis closures about related-party transac- Peak XV Partners), accusing him of firm recover a portion of its 4B Networks failed Kapoor and ex-COO Aadi
MF, Aditya Birla Sun Life MF, tions. Despite investing unethical practices, investment while safe- to provide critical
financial information
Vaidya. She accused them of
ICICI Prudential MF, Motilal ₹280 crore in 4B Net- m E X P L A I N E R which triggered a pub- guarding its reputation. sought by Info Edge cheating, criminal intimida-
Oswal MF, SBI Life Insurance, works—including ₹275 lic fallout. For Yadav, however, the in early 2023 tion, conspiracy, and harass-
and Tata AIA Life Insurance crore in equity and ₹12 Yadav’s behaviour outlook is less certain. ment.
have also bought shares in crore as debt—the company faced finan- towards employees and investors led to “The allegations of fraud- EVENTUALLY Info Edtech giant Byju’s is also
Edge went on to
Cipla. Samina and Rumana are cial turmoil, defaulting on salaries and his ouster from Housing.com in 2015. ulent activities could dam- write off its entire embroiled in legal disputes
nieces of Y. K. Hamied—the vendor payments amid glaring lapses in His subsequent ventures, such as Intelli- age his reputation and ₹280 cr investment after a group of early inves-
non-executive chairman of corporate governance. gent Interfaces, also faced governance impact his future entrepre- in 4B Networks tors approached the
Cipla. Shares of Cipla fell 1.36% These issues escalated as Broker Net- and financial management challenges. neurial venture and may National Company Law Tri-
to close at ₹1,513 apiece on the work, operated by 4B Networks, tee- At 4B Networks, Yadav attempted to raise serious concerns bunal, raising concerns
NSE. tered on the brink of collapse. Info Edge secure additional funding, including a among investors and stakeholders about governance failures, financial
In October, Cipla reported a eventually wrote off its entire ₹280 ₹50 crore investment proposal from a which should make it very difficult for mismanagement, compliance lapses,
17% rise in consolidated net crore investment. Dubai-based property dealer. However, him to ever obtain funding for any new and changes in leadership earlier this
profit to ₹1,303 crore for the The FIR, filed last week, alleges fraud- the offer came at a drastically reduced venture,” Damkewala said.Manmeet year. While Byju’s does not have a crimi-
September quarter, driven by ulent misuse of funds by Yadav and his valuation—99% lower than the prior Kaur, partner at Karanjawala & Co., said nal history, multiple investigations are
robust sales across markets. associates. funding round—further straining rela- the Economic Offences Wing or an still underway.

TP Northern Odisha Distribution Limited

(A Tata Power & Odisha Govt. Joint Venture)
Regd. Off: Corp Office, Januganj, Remuna Golei, Balasore, Odisha-756019
CIN No.: U40106OR2021SGC035951; Website: www.tpnodl.com
NOTICE INVITING TENDER (NIT) December 03rd, 2024
TP Northern Odisha Distribution Limited invites tender from eligible Bidders for the following:
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08 TUESDAY, 3 DECEMBER 2024
MUMBAI GLOBAL LIVEMINT.COM

China tensions prompt U.S. Navy US prez

pardons his
son Hunter
race to reload missiles at sea Biden
Reuters
feedback@livemint.com
WASHINGTON
Rearming destroyers can take them out of combat for two months. The U.S. wants to fix that
U
S President Joe Biden
said on Sunday he had
Daniel Michaels, Mike Cherney & He watched as crews zip-lined a dummy smoothly into tightfitting launch cells pardoned his son,
Tonia Cowan missile container to the cruiser USS Chosin because jostling could damage delicate gui- Hunter Biden, a reversal after
sailing alongside and as technicians operated dance systems—or worse. pledging to stay out of legal
the experimental crane to position the “These are supersonic rockets. There is a proceedings against the

A
U.S. Navy destroyer can fire 20-foot-long box over the ship’s launch cells. lot of fire and gas involved with this,” Maruca younger Biden who pleaded
dozens of cruise missiles within Del Toro, whose term ends with the Biden said. “If you drop the missile, that’s not guilty to tax violations and
minutes. Reloading the deadly administration, wants equipment like good.” was convicted on firearms-
warship back in port can take TRAM included in ship modernization work For decades, the Navy has provisioned its related charges.
two months. In a war against planned over the coming years. ships on the high seas by sending basic sup- “Today, I signed a pardon for
China, that could be a fatal weakness. Today, the only U.S. warships that can be plies across cables strung between them. It my son Hunter. From the day I
To overcome the delay, Navy engineers sustained indefinitely at sea and continue routinely refuels ships using hoses supported took office, I said I would not
pulled a 30-year-old crane out of storage, fighting are its 11 nuclear-powered aircraft car- in this way. interfere with the Justice
wired it up to computers, and used it to build riers and nine smaller amphibious assault The connections require the ships to sail Department’s decision-mak-
a new prototype reloading system called the ships, none of which carry vertical missile silos. at nearly identical speeds, maintaining a ing, and I kept my word even as
Transferrable Reload At-sea Method. TRAM could increase that number constant distance. The equipment is I have watched my son being
TRAM, as it is known, promises to slash the roughly fivefold, taking the total to around designed so connections can be severed selectively, and unfairly, prose-
time needed for missile reloading, poten- 100 warships without building a single instantly if needed, such as if attacked. Load- cuted,” the president said in a
tially to just days. new hull. ing a warship with dozens of missiles using statement. The White House
“The ability to rearm at sea will be critical Until then, the Navy is seeking new rearm- a crane on the supply ship would be danger- had said repeatedly that Biden
to any future conflict in the Pacific,” said ing sites at friendly ports. In September, U.S. ously slow. TRAM is designed to make the would not pardon or commute
Navy Secretary Carlos Del Toro after a sailors and logisticians for the first time process faster and safer. sentences for Hunter, a recov-
recent test of TRAM off the California coast, reloaded a missile onboard the USS Dewey, Creating the TRAM mechanism was still ering drug addict who became
to which The Wall Street Journal was a destroyer, at an allied naval base in Darwin, challenging. To start work, Navy experts a target of Republicans, includ-
granted exclusive access. The U.S. Navy is seeking new rearming sites at friendly ports. AP Australia. early this year pulled the mothballed 1990s ing Donald Trump.
Until recently, the Navy didn’t feel much At the Dewey’s deployment base in Yoko- prototype out of storage, disassembled it and “No reasonable person who
need for speed in rearming its biggest mis- the Suez Canal and to ports in Greece or The U.S.’s inability to restock missile suka, Japan, missiles are reloaded from a drafted digital plans to reverse-engineer it, looks at the facts of Hunter’s
sile-firing warships. They only occasionally Spain to reload, leaving the fight for launchers at sea is notable because America barge that meets the destroyer at an anchor- with help from some archived drawings. cases can reach any other con-
launched large numbers of Tomahawk extended periods. long ago performed engineering feats such age in the harbor, but it is a sheltered area Putting the new plans in a computer simu- clusion than Hunter was sin-
cruise missiles or other pricey projectiles. “We should have developed this capabil- as linking spacecraft orbiting the moon. The and the waters are calm. In a war, ports the lation, they located the mechanism’s weakest gled out only because he is my
Now, Pentagon strategists worry that if ity fully decades ago,” said retired Navy military routinely refuels military planes U.S. uses in Japan and Guam could be tar- points and added about 300 lbs. of steel rein- son,” Biden said in a statement.
fighting broke out in the western Pacific— Admiral James Stavridis . “Again and again, soaring above the clouds. geted by Chinese missiles, prompting the forcement, said Ryan Hayleck, the project’s The grant of clemency said
potentially 5,000 miles from a secure Navy after firing a significant load of Toma- Engineers say that the ocean surface— Navy to seek havens further away. technical leader. The Chosin’s deck also Biden had granted “a full and
base—destroyers, cruisers and other big hawks…I had to pull my warships off the line while more familiar—presents uniquely vex- “If conflict were to erupt, or if something needed reinforcing to handle the new load. unconditional” pardon to
warships would run out of vital ammunition to rearm,” said Stavridis, ing physics challenges due were to happen, being able to go to various Technicians wired up both ships and the Hunter Biden for any offenses
within days, or maybe hours. a former Supreme Allied to currents, wind and the different locations around the Indo-Pacific, crane with sensors to understand how all the in a window from 1 January,
Seeking to plug that supply gap, Del Toro Commander Europe of mix of air and water. it makes it much faster for us to reload,” said elements moved and what stresses they 2014, to 1 December, 2024.
tasked commanders and engineers with the North Atlantic Treaty Now digital advances Cmdr. Nicholas Maruca, the Dewey’s captain. faced, all with the aim of refining designs. Hunter Biden faced sentenc-
finding ways to reload the fleet’s launch sys- Organization. including 3-D printing, specialized radar From the South China Sea, Darwin is a Navy Chief Engineer Rear Admiral Peter ing for the false statements and
tems at remote ports or even on the high The Navy only reloads the launchers and motion-detectors of the kind found in roughly 4-day journey under normal sailing Small said the scads of data couldn’t have gun convictions this month. In
seas. Otherwise, U.S. ships might need to sail from solid ground or in sheltered harbors cellphones, have allowed the Navy to revisit conditions, compared with a roughly three- been collected through land-based tests and September he pleaded guilty to
back to bases in Hawaii or California to do because it is a delicate operation. Engineers the idea. Newfound urgency is speeding up week journey to the U.S. West Coast. will guide the next steps. federal charges of failing to pay
so—putting them out of action for weeks. in the 1990s proposed systems for reloading work toward a solution. Reloading at sea could slash that down- “It’s safe to say that the TRAM of today is $1.4 million in taxes while
Slow reloading has been causing the Navy at sea, but available technology wasn’t pre- “We are transforming the way we fight,” time even further, but it would be a dicey not your TRAM of yesteryear,” said Del spending lavishly on drugs, sex
headaches in the Red Sea. Warships cise enough to transfer missiles from a plat- said Del Toro onboard the USNS Washing- operation. Missiles in their boxes, which Toro. workers and luxury items. He
deployed there to defend cargo ships from form constantly in motion, such as a ship or ton Chambers, a supply ship, during the resemble slender shipping containers, can ©2024 DOW JONES & CO. INC. was scheduled for sentencing
Houthi rebels in Yemen must sail through floating dock. TRAM test. weigh more than 6,000 lbs. They must slide feedback@livemint.com in that case on 16 December.

Amazon Web Services CEO Matt Garman promises ‘needle-moving’ AI updates

Belle Lin tive to rattle off a slew of prod- domain, its rivals are catching edly saying it is the “early in AI models. man said about Anthropic. over the next decade on data There are also complaints
feedback@livemint.com uct updates in a keynote up. Amazon’s share of the days” of AI. In late November, the com- “And then from a product centers—devoting more that the cost of cloud has grown
address. Garman, on Tuesday, global public cloud-comput- Garman echoed that senti- pany announced that it point of view, they’re also investment money to its as companies use more of it for

M
att Garman , the new will be sharing new features ing market fell to 39% in 2023 ment, saying it is “still incredi- invested an additional $4 bil- really leaning in with us on cloud computing and AI AI. Gartner forecasts that each
chief executive of and products in areas includ- from 39.9% in 2022, accord- bly early” in how far generative lion in Anthropic—doubling Trainium.” infrastructure than to its area of cloud spending is
Amazon ’s cloud unit, ing AI and computing, which ing to research and consulting AI will go. Still, he said Ama- its investment in Trainium is sprawling network of e-com- expected to grow by a double-
says artificial intelligence is a he described as “real, needle- firm Gartner . Meanwhile, its zon’s AI strategy has remained the AI startup to In late November, A m a z o n ’ s merce warehouses. digit percentage in 2025 as
race without a finish line. moving changes.” rival Microsoft gained market the same since the AI boom $8 billion. Google AWS invested in-house AI chip AWS’s custom chips are technology leaders prepare
“It is such a foundational The changes that Amazon share, rising to 23% from kicked off about two years ago. last year agreed to additional $4 bn in , first launched in part of how the company is their information-technology
technology,” Garman said. unveils do 2 1 . 5% i n “We felt very strongly that invest up to $2 bil- Anthropic— 2020, which the lowering the cost of AI for cli- infrastructure for AI.
“It’s just a thing that’s going to need to be those years, there was not just going to be lion in Anthropic. company has ents, Garman said, along with “Almost every CEO or CIO
doubling its
happen forever.” revolu- while Goo- one model, but there’s going to Microsoft has touted as the making its services and hard- that I talk to, they’re basically
Garman, who became CEO tionary, gle rose to be a lot of models that people invested $13.75 investment in the most “cost-effec- ware more capable. saying, ‘Look, my organiza-
of Amazon Web Services in some analysts and customers 8.2% from 7.5%. wanted to lean into,” Garman billion into AI startup to $8 bn tive” chip for The question of return on tion did 100, 200 proof of
June, is about to headline his say. The cloud giant has been Andy Jassy , Amazon’s chief said, referring to Amazon’s OpenAI, which training AI mod- investment for AI initiatives concepts,’” Garman said,
first re:Invent, the company’s perceived as falling behind its executive and former CEO of tactic of acting as a neutral News Corp , els. As part of its has dogged chief information referring to companies’ AI
annual conference, which reg- tech rivals in the AI race, AWS, has said he expects AI to platform that offers businesses owner of The Wall Street Jour- new investment, Anthropic officers and other corporate experiments. “Then they say,
ularly attracts tens of thou- though it has continued to drive tens of billions of dollars options for AI models, a sort of nal, has a content-licensing will use Amazon’s chips to technology leaders since at ‘How do I go find the one, two,
sands of attendees to Las Vegas. introduce new AI capabilities of revenue over the next sev- Switzerland among the cloud partnership with. train and run its future AI least this year, and analysts five of those proof of concepts
Each year, it is tradition for targeting business customers. eral years for the company, giants. Like Amazon has done “We thought it was a good models, the companies said. expect costs and value of AI to that are valuable, and that are
the world’s largest cloud pro- Even in overall cloud-com- yet Amazon has also tamped in retail, AWS is aiming to be a investment, and wanted to Amazon is also planning to be a big part of the conversa- delivering real ROI?”
vider to invite its chief execu- puting, long Amazon’s down expectations by repeat- bit of everything for everyone keep investing in that,” Gar- spend more than $100 billion tion at re:Invent this year. ©2024 DOW JONES & CO. INC.

Texas offers Trump a blueprint for illegal-immigration crackdown

Elizabeth Findell barriers and create a system to Buckingham said she wasn’t new system of floating barriers for participating in such efforts. rescues. While the Supreme
feedback@livemint.com jail migrants on low-level state familiar with the flood-plain in the river. Environmental David Donatti, a senior staff Court previously gave the fed-
misdemeanor charges. issues and that it was a strate- advocates have raised con- attorney at the ACLU of Texas, eral agency temporary emer-

A
s President-elect The effort has had little gic piece of property in an area cerns that the string of buoys— noted the state grants to coun- gency authority to remove the
Donald Trump pre- effect on migration while fac- with high number of illegal which are no longer floating, ties that declared border-re- wire, the most recent order, on
pares for border ing charges of civil-rights crossings by migrants. She said but resting on a mud bank that lated states of disaster. Under Wednesday from the Fifth Cir-
restrictions and deportations abuses, The Wall Street Journal on Tuesday that her office had has built up under them— Operation Lone Star, Republi- cuit Court of Appeals, blocks
that formed the bedrock of his previously reported. But it has made a list of other state- could change the flow of the can-led counties hundreds of the federal government from
election victory, the state that become a system that a Trump owned properties to offer to Rio Grande and possibly even miles from the border have interfering with it.
has pioneered extreme immi- administration could poten- the federal government. the border itself down the cen- been under states of disaster With Trump back in office,
gration crackdowns is reach- tially use, either hand-in-hand “Our message to the Trump ter of the river. Abbott has for years. That has led to unre- border-security experts from
ing out to lend a hand. with the state or as an example administration is ‘we’re here, called them a success, and the lated arrests of citizens in pla- both parties said they expect
In recent weeks, Texas lead- to follow. we’re interested,’” she said. “Of state recently added a second ces like Midland to be counted those lawsuits to disappear.
ers offered some 1,400 acres of “This is a model we can take course, we own property all stretch of them. as arrests under the operation, “When I’m president, instead of
land on the border to the fed- across the country,” Homan over the state, so we’re ready to Ron Vitiello , who served as and for those counties to sending Texas a restraining
eral government for construc- told troops last Tuesday. sit down with them and talk acting director of U.S. Immi- receive funding for things order, I’ll send them reinforce-
tion of deportation facilities Here are five ways the about what could be strategic.” In recent weeks, Texas leaders offered 1,400 acres of land to the gration and Customs Enforce- such as court technology or ments,” he said at a January rally.
and said the state was looking Trump administration could Representatives for Abbott federal government for construction of deportation facilities. AFP ment during Trump’s previous improved morgues. Legal and immigration
to offer more. Incoming follow a and Trump term, said he could see the “These are grant programs, experts are watching closely to
Trump administration border Texas play- declined to cratic presidents and on state the envelope and use military incoming administration mak- at the end of the day,” Donatti see if the Justice Department
czar Tom Homan joined book: answer spe- orders from governors around forces to enforce immigra- ing use of border barriers that said, emphasizing that a mon- under Trump withdraws from
Republican Texas Gov. Greg State cific ques- the country. They don’t have tion,” said Angela Kelley, a the Biden administration has etary incentive can persuade leading a multi-plaintiff law-
Abbott this past week in two land for federal purposes tions about how the state and authority to enforce immigra- former Biden administration fought states over, including localities of different ideolo- suit over the state deportation
Texas border cities, where he Last month, Texas Land administration could work tion law, so have typically sup- senior counselor for immigra- the Texas buoys and a ship- gies to participate in immigra- law. The Texas law, and a simi-
learned about the state’s bor- Commissioner Dawn Buck- together, but Trump spokes- ported Border Patrol by acting tion. “That’s distinct from pre- ping-container wall in Arizona. tion actions. “If you declare a lar one in Arizona, are direct
der operation and visited its ingham announced that she woman Karoline Leavitt said: as extra eyes and ears. vious administrations that “There are probably some disaster, we’ll give you a bunch challenges to federal immigra-
National Guard soldiers and had offered the Trump admin- “President Trump will marshal Under Operation Lone Star, have used the Guard to do lessons learned over the Texas of money to do different tion authority .
state troopers. istration some 1,400 acres every lever of power to secure Texas has shifted such deploy- administrative work.” effort,” Vitiello said. “I hear a things.” Lawyers have said they
The budding alliance comes along the Rio Grande in rural the border, protect their com- ments from short-term to a Different border barri- lot of good operational feed- Dropping lawsuits could open the door to
as Abbott over the past three Starr County. The state munities, and launch the larg- permanent border fixture. The ers back from the buoys.” The Biden administration different states—including
years has used his signature recently bought the land for est mass deportation operation state has ordered soldiers to Texas has layered parts of Money for localities that has sued Texas over several blue states—having different
policy priority, Operation $3.8 million and has suggested of illegal immigrant criminals report for a year or longer and the Rio Grande in razor wire, cooperate elements of Operation Lone immigration policies and
Lone Star, to challenge federal Trump build deportation facil- in history.” built a permanent base near causing severe injuries to Trump has said he plans to Star, including the buoys and a enforcement.
authority over immigration ities there. The land lies within Greater use of military the Rio Grande. Immigration some migrants. Civil-liberties declare a national emergency state law allowing local author- “Even the Trump adminis-
and push militarization of the the river’s flood plain and a force experts expect Trump to simi- groups called the strategy to carry out his deportation ities to order deportations . tration may want to keep
border to new levels. The state person familiar with the sale Members of the National larly call up the Guard, per- unprecedented in its brutality, plans. Such a declaration The state and federal govern- immigration enforcement on
has spent more than $11 billion said the previous owners had Guard have been deployed to haps with some sort of direct but Abbott and other immi- would be similar to a state of ment have tangled over Border its terms,” said Donatti, who
to deploy thousands of struggled to find other buyers the U.S.-Mexico border for authority to detain people. gration hard-liners have cele- disaster in place since 2021 in Patrol’s ability to cut through represents the ACLU, another
National Guard and state because development there decades, on federal orders “They’ve made no secret of brated it. Texas, where localities have state-placed razor wire as plaintiff, on the case.
troopers to border towns, erect wouldn’t be feasible. under Republican and Demo- the fact that they want to push The state has also tested a also been financially rewarded needed to perform arrests or ©2024 DOW JONES & CO. INC.
LIVEMINT.COM NEWS WRAP TUESDAY, 3 DECEMBER 2024
MUMBAI 09

NEWS
42%
THE PERCENTAGE of the annual capital
₹1.14 tn
THE VALUE of premium houses sold in
25
THE NUMBER of LNG-powered trucks
4,000
THE NUMBER of retail stores Ola Electric
100
THE NUMBER of people who were
IN expenditure budget that the Union the Mumbai Metropolitan Region in the Essar Group’s GreenLine Mobility will plans to have in its network by the end of killed in a stampede after clashes broke
NUMBERS government spent in FY25 so far, triggering
a spending challenge for next five months.
first half of FY25, up 2% year-on-year, and
the highest among the top Indian cities.
deploy for Flipkart, as a part of its plan to
decarbonize its delivery operations.
this month, up from 800 now, according
to its CEO Bhavish Aggarwal.
out among fans during a football
match in Guinea on Sunday.

HOWINDIALIVES.COM

More oversight for FARMERS’ RALLY Nazara Tech board

fuel stations: Report okays 5 investments

T G
o enhance regulatory oversight of retail aming and sports media firm Nazara
fuel outlets, the government has Technologies’ board has approved five
implemented a comprehensive investments worth ₹196 crore, including
monitoring system leveraging cutting-edge 100% acquisition of stake in Sportskeeda owner
technologies, according to a Parliamentary firm Absolute Sports, the company said in a
report tabled on Monday. regulatory filing on Monday.
The monitoring framework integrates Of the total ₹196 crore, Nazara will invest ₹148
advanced technologies including OTP-based crore in existing subsidiaries, including
calibration, magnetic self-destructive pulsers, Sportskeeda, Nodwin Gaming, and Datawrkz, to
and digital payment systems, enabling real- increase its ownership in them and support their
time data analytics across the country’s fuel growth. The company will invest ₹69 crore to
distribution network. The action taken report purchase shares arising from exercise of Esops
by the standing committee on consumer (employee stock ownership plan) from the
affairs, food and public distribution revealed Sportskeeda management to increase its stake
that the monitoring system has been to 100% in the company, making it a wholly
expanded nationwide, with special emphasis owned subsidiary. Nazara Technologies board
on high-risk areas. approved investment of ₹64 crore in its
The regulatory mechanism, developed subsidiary Nodwin Gaming. The investment
under the Legal Metrology Act, 2009 and will be done through subscription of optionally
Legal Metrology (General) Rules, 2011, convertible preference shares. PTI
provides a robust oversight framework. PTI

Police barricade the Delhi-Noida road to stop farmers during their protest march near Dalit Prerna Sthal in Noida, resulting in massive traffic snarls,
on Monday. The farmers are seeking increased compensation for their lands acquired by the government, among other demands. PTI

Centre intends to release GDP and CPI data under

Winter likely to be mild with The board lost confidence in CEO Pat Gelsinger’s
plans to turn around Intel. REUTERS
the new series starting in early 2026.

GDP base year to

BLOOMBERG

fewer cold wave days, says IMD Intel board forces

CEO Gelsinger out
change to FY23
I
ntel Corp. chief executive Pat Gelsinger was

T
he government is set to update the base forced out after the board lost confidence in
year for calculating gross domestic Above-normal temperatures forecast over most of India from December to February his plans to turn around the iconic chipmaker,
product (GDP) to fiscal 2023 from fiscal adding to turmoil at one of the pioneers of the
2012, minister for statistics Rao Inderjit Singh technology industry.
told Parliament on Monday. An advisory Jayashree Nandi consecutive month of record-breaking night-time ature falls below the 10th percentile of daily value The clash came to a head last week when
committee on national accounts statistics has letters@hindustantimes.com temperatures since measurements began in 1901, and the daily minimum temperature is below 15 Gelsinger met with the board about the firm’s
been formed to identify new data sources and NEW DELHI following similar records in July, August and Sep- degrees Celsius. A cold wave event is declared if progress on winning back market share and
advise on the methodology for the revised tember. these conditions persist for three consecutive days. narrowing the gap with Nvidia Corp., according

W
series, the minister informed lawmakers. The inter is likely to be mild with The weather office has forecast above-normal “Normally we see 5-6 cold wave days during to people familiar with the matter. He was given
committee will comprise representatives from fewer cold wave days following temperatures over most of the country from December to February over the cold wave region the option to retire or be removed, and chose to
the Union and state governments as well as the record high temperatures in December to February, except south peninsular which includes northwest, central, east and north- announce the end of his career at Intel, said the
central bank, he added. the autumn months of October India where below-normal temperatures are east India. This time, we can expect 2-4 fewer cold people, who declined to be identified discussing
Several private economists have said that the and November, the India Mete- likely. Below-normal cold wave days are expected wave days compared to average,” said M. Mohapa- proceedings that were not made public. Intel
current GDP estimates, which rely on a base orological Department (IMD) said over most of the northwest, cen- tra, director general, IMD. chief financial officer David Zinsner and
year over a decade old fail to fully capture the on Monday. tral, east and northeast India. In December, the weather office said minimum Michelle Johnston Holthaus are serving as
structural shifts in the economy, particularly the November was the second “During the upcoming winter and maximum temperatures are likely to be above interim co-CEOs while the board searches for
rise of digital platforms and impact of the warmest November for India season (December 2024 to normal over most parts of the country, except Gelsinger’s replacement, a statement said.
pandemic. The government intends to release since 1901 in terms of day temperatures and third February 2025), above-normal minimum temper- some areas of central India. Frank Yeary, independent chair of Intel’s board,
GDP and consumer price index (CPI) data under warmest for mean temperatures. For northwest atures are likely over most parts of the country. November has been exceptionally dry, particu- will serve as interim executive chair. BLOOMBERG
the new series starting in early 2026, India, it was the warmest November since 1901 for Above-normal maximum temperatures are larly for northwest India. During 1 October to
government officials have said earlier. mean temperatures and second warmest for day likely over most parts of the country except most 1 December, there was 15% deficiency in rainfall
India’s economic growth slowed more than and night temperatures. areas over south peninsular India, where normal over the country with 77.2% deficiency over
expected to 5.4% year-on-year in the three
months ended September 2024, with weaker
The country experienced its warmest October
in 123 years, with unprecedented night-time and
to below-normal maximum temperatures are
likely,” IMD said.
northwest India. November saw 54.5% rain
deficiency over the country with 79.9% deficiency
VW sees 66,000
expansion in manufacturing. REUTERS mean temperatures. October marked the fourth A cold wave occurs when the minimum temper- over northwest India.
workers walk out

R
oughly 66,000 Volkswagen AG workers
₹722 cr GST evasion across Germany abandoned their posts
GST on sin goods may rise to 35% on Monday, the first wave of temporary
case against Binance walkouts triggered by a stalemate over how to
slash costs at the carmaker’s namesake brand.
Bihar deputy chief minister Samrat The so-called warning strikes—designed to

G
ST authorities have booked a ₹722.43 Chaudhary also decided to rationalise tax pressure management during deadlocked
crore tax evasion case against crypto rates on apparel. As per the decision, negotiations — took place at all but one of
exchange and Binance Group Co., Nest readymade garments costing up to ₹1,500 Volkswagen’s 10 German plants, starting with
Services Ltd, Parliament was informed on would attract 5% GST, those between the company’s flagship electric-vehicle
Monday. In total, cases have been booked ₹1,500 and ₹10,000 would attract 18%. factory in Zwickau.
against 17 cryptocurrency exchanges for GST Garments costing above ₹10,000 would IG Metall, Germany’s powerful union, said it
evasion of ₹824.14 crore. Recovery of ₹122.29 attract 28% tax. reserves the right to call for further warning
crore in interest, penalty and taxes has been In total, the GoM on rate rationalization strikes soon and that worker assemblies are
made by GST authorities, minister of state for will propose tax rate tweaks on 148 items to planned at factories in the next few days.
finance Pankaj Chaudhary said in a written reply the GST Council. “The net revenue impact “If necessary, this will be the toughest
in the Lok Sabha. will be positive,” an official said. The GoM Finance minister Nirmala Sitharaman said collective bargaining battle Volkswagen has
Central GST formations have detected ₹40.51 report is expected to be discussed by the competitive pricing would cut insurance cost. PTI ever seen,” Thorsten Gröger, IG Metall’s lead
crore GST evasion by Zanmai Labs Pvt Sin goods like cigarettes and tobacco are GST Council—chaired by finance minister negotiator in the Volkswagen talks, said ahead
(WAZIRX), ₹16.84 crore by CoinDCX and ₹14.13
crore by CoinSwitch Kuber. As many as four
currently under the 28% tax slab. MINT and comprising her state counterparts—on
21 December. A final decision on GST rate
‘Insurance cost cut of the mass action. BLOOMBERG

T rests on GST rate’

investors in virtual digital assets have been he Group of Ministers (GoM) on GST changes will be taken by the council.
investigated by the Central GST authorities and rate rationalization on Monday “The GoM has agreed to propose a
₹1.76 crore evasion has been detected. ₹2.40 decided to hike tax on sin goods like special rate of 35% on tobacco and related
Pricol to buy arm
F
crore has been recovered in taxes, penalty and aerated beverages, cigarettes, tobacco and products and aerated beverages. The inance minister Nirmala Sitharaman on
interest. Chaudhary said total 47 virtual digital
asset service providers (VDA SPs) have been
related products to 35% from the present
28%, an official said.
four-tier tax slab of 5, 12, 18, and 28% will
continue and a new rate of 35% is proposed
Monday said the cost of insurance to the
policy holder is expected to come down if the of Sundaram Auto
registered as reporting entities with Financial The GoM on rate rationalization under by the GoM,” said the official. REUTERS GST Council recommends a reduction in GST rate

A
Intelligence Unit-India till date. PTI on health and life insurance policies. utomotive components maker Pricol on
In a written reply in the Lok Sabha, she said Monday said it will acquire Sundaram
the GST Council in its 9 September meeting had Auto Components’ injection moulding
recommended to constitute a Group of business for ₹215 crore. The firm said it is
₹1,000 cr space venture fund disbursals in Q1 FY26: IN-SPACe Ministers (GoM) to holistically look into the
issues pertaining to GST on life insurance and
making the acquisition via its wholly-owned
subsidiary Pricol Precision Products Pvt Ltd.
health insurance. “...The matter of review of With this acquisition, Pricol will see a

I
ndian National Space Promotion and Authorization Centre (IN-SPACe) is GST rates on life and health insurance is consolidated topline addition of around ₹730
hoping to make the first disbursal from ₹1,000 crore venture capital fund pending before the GoM. If a recommendation crore combined with Sundaram Auto
aiming to boost the space technology during the first quarter of the next for a reduction in GST rate is made by the GST Components’ (SACL) healthy financial
financial year, IN-SPACe chairperson Pawan Goenka said on Monday. Council, the cost of insurance to the policy parameters, it said in a statement.
Speaking to reporters on the sidelines of GeoSmart India 2024, Goenka holder is expected to come down on account of The debt-free acquisition is being made
further said the IN-SPACe has floated a request for proposal (RFP) for reduction in GST,” she said. through an all-cash deal for an amount of ₹215.3
appointing fund managers recently. “We have to go through the process of Sitharaman said this while replying to the crore and is subject to adjustments, if any, as
creating a venture capital fund. It is a Sebi process. Right now, we are in the question on whether GST reduction on health defined in the agreement at the time of closing
process of selecting who the fund manager would be. We have already put out insurance will be a step towards making healthcare the deal, it added. SACL is part of the TVS Motor
an RFP. Then we will select the fund manager. It is hard to say (when the first more equitable. To a query on how the Co. “With this acquisition, our focus will remain
disbursal would be made), but our first disbursement may happen in the first government will ensure that insurance firms pass on harnessing the combined potential of Pricol
quarter of next financial year,” Goenka said. on the benefits of any GST reduction to and SACL, to become an integrated solution
The Cabinet in October approved the setting up of a ₹1,000 crore venture consumers, rather than retaining them through player, driving innovation, and delivering
capital fund to help space sector startups. The fund is expected to support The fund is expected to support approximately 40 startups and increased premiums, Sitharaman said competitive sustainable growth,” Pricol managing director
approximately 40 startups and accelerate private space industry’s growth. PTI accelerate private space industry’s growth. PTI pricing would bring down the cost of insurance. PTI Vikram Mohan said. PTI
10 TUESDAY, 3 DECEMBER 2024
MUMBAI LONG STORY LIVEMINT.COM

CMS INFO SYSTEMS

LOOKS FOR A QUEEN
Cash is still king for the ATM solutions provider, which is trying to diversify its revenue mix

Shayan Ghosh
mint
shayan.g@livemint.com
MUMBAI CMS INFOSYSTEMS SHORT
STORY
VS PEERS
I
n September 2021, when Rajiv Kaul,
vice-chairman and chief executive of
CMS relies on cash management for the bulk of its revenue.
WHAT
CMS Info Systems, India’s largest cash
management firm, met investors, he Operating revenue ( crore) CMS Info Systems was
CMS Info Systems AGS Transact Technologies carved out from the CMS Group
was desperate to explain that his busi- Radiant Cash Management Services
ness had potential. The questions he faced in 2008. The company went
3000
were primarily around how the dwindling public in 2021 and today, the
use of cash in the years ahead would 2000
lion’s share of its revenue comes
impact a business that relies on the move- from cash management.
ment of paper currency. 1000
Kaul, however, was unfazed. “‘During
demonetisation, you said cash will die. 0
FY22 FY23 FY24 BUT
During covid-19, you said cash is dying. Profit after tax ( crore)
How many times will it die,’ I asked them,” While cash usage has not
400
he told Mint during a recent interaction in declined, the explosion in digital
300
his office in Mumbai. transactions is a big worry. There
200
However, that wasn’t the response the has been a 90-fold increase
100
investors were looking for. But Kaul, a in retail digital payments
0
former chief executive of Microsoft India, over the past 12 years.
-100
had something more to offer. “Perception -200
is bigger than reality. We told the inves- FY22 FY23 FY24
tors they would be gaining entry into a
Strong show
NOW
new business, one that we have spent
CMS has returned 128% since its listing beating the BSE Smallcap To reduce its dependence on
money on from our books. If it scales up index during the period.
they would see the gains,” he said. Kaul Daily closing price since CMS Info listing
cash, the company has started to
was referring to remote monitoring, a 300 diversify. It now offers remote
business that entails overseeing auto- monitoring services for ATMs,
250 228.1 and is looking to get into debt
mated teller machines (ATM) remotely to Rebased to 100 CMS info
prevent unauthorized transactions. 200 collection and bullion logistics.
190.9
The investors’ concern is understand- BSE
150 smallcap
able. For years, CMS, a company that
went public in December 2021, has relied 100 tion record, experienced leadership, scala-
on cash management for the bulk of its ble solutions, and pan-India presence,”
50
revenue. Even today, 62.5% of its top line 30 Dec 2021 2 Dec 2024 Elara Securities said in its 7 October note,
comes from cash management. But, with while initiating coverage on the company.
the threat from digital payments loom- Cash pie Another positive for CMS is that while
ing large, the company has started to Market share battles are expected to intensify in the ATM market digital payments may seem like a dark
because of industry consolidation.
diversify into new lines of business. cloud, the silver lining is the amount of
Market share in ATM cash
Aside from remote monitoring, it is now management, FY24
3 6 cash in the system, which has only grown—
looking to get into debt collection and 6 cash is still very much the king in India.
CMS Info Systems
bullion logistics. AGS Transact Technologies 13
Currency in circulation stood at ₹35.6 tril-
The company’s financials indicate that Hitachi Cash Management (in %) 47 lion as on 15 November, per RBI data, up
it isn’t in any immediate danger. CMS (Formerly Writer Safeguard) from ₹33.6 trillion on 17 November 2023.
clocked revenue of ₹2,265 crore in FY24 SIS Brinks Others The level is nearly double of what it was
and it is targeting a topline of 25 during demonetisation in November 2016,
₹2,500-2,700 crore this fiscal year. The when high-value currency notes were
company’s consolidated net profit stood at declared invalid overnight.
Market share in retail cash
₹347 crore in FY24, having risen steadily management, FY24 (%) 7 Explaining the phenomenon, Bhavik
from ₹168.5 crore in FY21. Radiant Cash 14 Hathi, managing director, Alvarez and
But in the years since Kaul’s meeting, Management Services Marsal, said that assuming India’s GDP is
while cash usage has not declined, the CMS Info Systems
41 growing at 6-7%, it would mean that busi-
(in %)
explosion in digital transactions has SIS ness volumes would also be growing at the
remained a worry for CMS’s investors. Hitachi Cash same rate and cash in circulation would
Management (Formerly 38
There has been a staggering 90-fold Writer Safeguard) also increase after accounting for digital
increase in retail digital payments over the adoption. “Overall digital adoption is not
past 12 years. The country now accounts at par with the pace at which India is grow-
for nearly half (46%) of the digital transac- Downtime ing, thereby leading to more cash being
tions in the world, global consultancy PwC When it comes to expanding the number of ATMs,
needed,” he said. “At least in the next dec-
said in its India Payments Handbook, both public and private sector banks are going slow. ade, I do not see the position of cash in the
released in August, citing data from the Three-year CAGR (%) Five-year CAGR (%)
system changing dramatically. There will
Reserve Bank of India (RBI). be an inflection point but, it is difficult to
12
In particular, since its launch in August predict when that will come.”
2016, the Unified Payments Interface
(UPI) has unleashed a digital payments 8 CHALLENGES APLENTY
revolution in India, clocking more than 10
billion transactions a month since August
2023. Indeed, the number of transactions 4
D espite its diversification strategy,
given that the primary business still
involves cash, which accounts for 60% of
had shot up to 16.6 billion in October. its revenue, CMS has to depend on banks
While all these statistics have put India expanding their ATM networks and peo-
0
on the map for all the right reasons, ple using cash as a medium to purchase
they’re not music to the ears if you’re goods and services.
working at CMS. And Kaul, who has been -4 With digital payments becoming ubiq-
Public sector Private Small finance White Total
associated with the company for nearly 17 banks banks banks and label ATMs
uitous, banks have gone slow on expanding
years, has his task cut out as he leads the foreign banks ATMs the number of ATMs. In fact,
overhaul to future-proof the company Note: White label ATMs are those operated by non-banks
A file photo of Rajiv Kaul, vice-chairman between October 2023 and October
from the onslaught of digital payments. Source: Elara Securities Research, Bloomberg and chief executive, CMS Info Systems. 2024 (the latest available monthly data),
ATMs and cash recycling machines of pub-
SARVESH KUMAR SHARMA/MINT
LOOKING BEYOND CASH lic, private, foreign banks and small finance

C MS offers cash management, man-

aged services, and other services
(which include issuing credit and debit sive e-surveillance mechanism”, as envis- Bullion logistics involves last-mile
banks declined 2% to 216,208, as per data
from the RBI. The total ATM base of state-
“Given that the RBI is hassled about it to build the transformation that CMS is owned banks and private sector banks has
cards for banks). In the first segment, it aged by an RBI circular from June 2019, deliveries to jewellery stores, traders and NBFC collection practices, we thought the going through,” said Kaul. shrunk 1.7% and 1.5%, respectively, over the
manages cash at ATMs and also provides reduces the need for banks to have a secu- bullion companies, while the debt collec- sector would get regulated over time. Just In 2015, Baring Asia bought the entire same period.
vans to transport currency to and from rity guard at ATMs. tion business will involve collecting for NBFCs, it is a ₹25,000-30,000 crore company (CMS Info Systems) from Black- In the ATM space, analysts also see a
branches. The company’s competitors in In a note on 7 October, analysts at Elara repayments on behalf of non-bank finan- total addressable market,” said Kaul, indi- stone and the Grover family for ₹2,000 threat to CMS Info Systems’s market share
this line of business include AGS Transact, Securities said that the untapped potential cial companies. Among other things, it cating why CMS has chosen this business crore. Under Baring, CMS made six acqui- in the wake of Hitachi Payment Services,
Brinks, SIS Prosegur, and Radiant Cash in the remote monitoring space is huge, will include managing the call centre, hav- to diversify. sitions. The private equity firm finally the Indian arm of Japanese multinational
Management. It also has a retail cash man- given that over 60% of ATMs and bank ing feet on the street to execute collection, exited in February, after selling stakes Hitachi, acquiring Writer Corporation’s
agement service, under which it offers cash branches are not on AIoT (artificial intelli- and carrying out background data analyt- EARLY DAYS over multiple tranches since CMS’s 2021 cash management business in January.
pick-up and delivery solutions to retailers. gence of things) solutions. “As the legacy
Managed services include sale and base of ATMs is under a refresh cycle, there
maintenance of ATMs to is a potential to cross-sell
ics to help the frontline staff. Both these
businesses were incubated in FY25.
“Last year, we invested almost $1 mil-
I n its initial years, CMS, which was public offering. Currently, the company Hitachi Payment Services did not have a
founded by Ramesh Grover and others does not have a promoter and is wholly cash logistics business and banks have
in 1976, was an IT infrastructure manage- owned by public shareholders, been using the services of CMS
banks, setting up and this solution to private lion to incubate the collection business, ment company that, among other things, which include mutual funds, or other competitors for the
managing brown-label India now accounts for nearly banks or public sector get clients and get experience,” said Kaul. provided traffic management services. alternative investment funds, same, while the Japanese sub-
ATMs (where the ATM is half (46%) of the digital banks,” the report said. CMS is now looking for partners to scale In 2008, private equity giant Black- foreign portfolio investors, and sidiary handled other aspects of
managed by a third- Other analysts are also up this business. That said, there are some stone partnered with the CMS Group to Kaul, among others. cash management. In the wake
party in the bank’s transactions in the world, watching the monitoring lines that Kaul does not want to cross. set up a new company, carving out IT Over the past year, the CMS of the recent acquisition, banks
name), providing soft- global consultancy PwC said business with interest, There are two kinds of collections in the infrastructure management, ATM cash stock has gained 24.2% on the could now potentially give the
ware solutions for ATMs, with Jefferies pegging market, he noted, one where loans are management, and other businesses. In a BSE, as compared to a 34.5% Liked this story? whole service contract to Hita-
and, of late, remote in its India Payments the total market at overdue for up to 90 days and another statement that December, Blackstone rise on the broader BSE Small- Share it by chi.
monitoring of ATMs. ₹6,000-9,000 crore where loans have turned bad and repay- said it owned a majority stake in this new cap index, of which it is a part. scanning the And despite the enthusiasm
Rivals here include Handbook, released in August across ATM, bank and ments are long pending. The company company and had inked an agreement QR code. around new businesses at CMS,
Diebold Nixdorf, NBFC branches, telecom does not want to get into bad-loan recov- with Kaul to lead it. POSITIVE EXPECTATIONS analysts believe there is an exe-
Euronet, FIS, FSS, and Hitachi Payments. towers, retail stores and quick commerce,
When it comes to diversification, Kaul besides others. The brokerage noted that
and his team are betting big on the pay- CMS will face competition from Indian as
ery and risk sullying its reputation as the
business involves “different pressure tac-
tics”, he explained.
A few years into the acquisition, Kaul
started shrinking the number of business A nalysts are quite upbeat about CMS’ cution risk. “The inability to maintain effi-
plans, given that it reduces the com- ciency in operations could hit margins and
segments. “The first year and a half, we did pany’s reliance on cash for revenue. In a thus create value. (There is also a) risk
back from remote monitoring of ATMs. In well as foreign entities, but said its inte- Debt collection has earned a bad name not have enough money to pay salaries note on 28 October, Jeffries said that as from new entrants: Loss in market share
March 2022, CMS acquired Hemabh grated platform, competitive cost of imple- in recent years because of the strong arm and hire a senior team. We hived off the IT diversification in (the) non-cash market driven by competitive pricing from new
Technology to enter the business. mentation, and regulator-led demand for tactics of agents on the ground. In Sep- infrastructure maintenance business and plays out, it sees potential for a rerating. entrants may risk valuations,” said the
Remote monitoring entails keeping an such implementation is helping the mar- tember 2022, for instance, the RBI had others since we realised that these would Others are counting on NBFCs and Elara Securities note cited earlier.
eye out for unusual activity at ATMs from ket. “From India, its competitors are iVIS, asked Mahindra & Mahindra Financial not reach market leadership.” banks viewing the outsourcing of second- Acknowledging the risks, Kaul empha-
a centralized monitoring centre. CMS uses Igzy, Securens, Modern Informatics, SIS, Services (Mahindra Finance) to stop They focused their energies on building ary activities favourably. “We believe that sized that the management will focus on
artificial intelligence (AI) and video ana- Zicom, Boparai etc. and international play- recoveries through external agencies after the cash management business. “None of banks and NBFCs will look to adopt leaner profitability while looking to diversify.
lytics to look at ATM camera feeds to ers are Honeywell, Johnson Controls, Hita- the alleged death of an individual in the us knew anything about that business models by outsourcing non-core activities, The idea is to be the market leader in any
detect intrusions, vibrations, glass breaks, chi, Eagle Eye, among others,” it said in a process. The restrictions were lifted four (when we bought CMS). I had no clue, but and CMS Info Systems is well-positioned business CMS targets, but not by spending
smoke, and so on. Having a “comprehen- note to clients on 3 June. months later. we made it India’s biggest. Then we used to support this shift given its robust execu- to achieve scale.
LIVEMINT.COM MINT MONEY TUESDAY, 3 DECEMBER 2024
MUMBAI 11

Can you withdraw pension share POWER

POINT
of your EPF early? Know the rules R A D H I K A G U P TA

We welcome your views and comments at

mintmoney@livemint.com

A low-down on how your provident fund contributes to Employee Pension Scheme, and what it means for you
5 REASONS TO ADD
Sashind Ningthoukhongjam However, the pension portion is
FIXED INCOME MF
sashindnj@livemint.com
MUMBAI
Decoding EPF and EPS: Key facts bound by separate rules. If the pen-
sionable service was less than 9.6 IN YOUR PORTFOLIO
How much will you years (114 months), early withdrawal
What is the share

I
f you're an employee contributing get at retirement is allowed. Once the 10-year mark is
of pension?

I
to provident fund, your employer  DESIGNED to get Formula: (The average reached, the pension share can’t be n recent years, the decline in debt mutual fund (MF) investors
might be allocating a portion of it fixed monthly pay after salary of the last 60 months withdrawn, till at least age of 50. After has been alarming. Since 2020, folios in fixed income funds
to the employee pension scheme retirement X Pensionable service)/70 9.6 years of eligible service, the have dropped from 8.1 million to 7.1 million even as equity-ori-
(EPS) each month. Many employ-  MANDATORY if employee becomes eligible for the ented fund folios have skyrocketed to over 1.5 billion from 638
ees wonder how this scheme works  IF an employee defined benefit pension benefits. million. While the percentage of MF assets to bank fixed deposits
salary is less than
and whether they can access this por- completes 20 years of “Employees who rendered pension (FDs) has risen to 31% in 2024 from 16% in 2020, the ratio of fixed
₹15,000/month pensionable service, 2
tion before reaching retirement age.  NOT eligible if the service of less than 9 year, 6 months income assets under management to bank deposits remains a
additional service years
It's essential to understand the dis- salary is more than will get added, when have the option to withdraw their paltry 7.5% as of October. For context, in the US, fixed income MF
tinction between EPS and Employee ₹15,000* employees reach age 58 EPS contributions by filling online assets are at $6.16 trillion, about 31% of the $20 trillion in bank
Provident Fund (EPF). An employer  THE maximum  YOU also have an form 10C in EPFO portal,” said Singh. deposits. The contrast highlights the untapped potential of debt
deducts 12% of your basic salary plus contribution is option to start early However, there’s an option to opt MFs in India’s household savings landscape.
dearness allowance, if any, from your ₹1,250/month pension starting at 50. for an early pension starting at age 50 Why the disparity? Several factors have contributed to this
monthly salary to contribute to EPF Salary as per EPF Amount reduces 4% for instead of 58 with the drawback of a trend, especially taxation changes that have reduced the appeal
account. It may also include retaining definition (not CTC) every year if you are reduced pension amount. “Amount of debt MFs for institutional and high net worth individual (HNI)
allowance and the cash value of food below 58 years of pension shall be reduced at the rate investors. Currently, institutions dominate fixed income AUM
concessions, if applicable.  32% less if early pension of 4%, for every year the age falls short with 64% share, while individual investors, mostly HNIs, account
Your employer is required to chip EPF salary structure: is availed at 50 than the of 58 years,” Jain said. For example, for 36%. Retail investors who have driven the meteoric rise in
in with an equal percentage amount. Basic salary + dearness amount at 58 years* this would mean a pension of ₹2,186 equity MFs through systematic investment plans are yet to expe-
However, from the employer’s 12% allowance + retainer  DEFERRED pension per month at age 50, or 32% lower rience the benefits of fixed income MFs. So, a real retail revolu-
allowance + cash value Can the pension portion be withdrawn early? after 58 years can increase
contribution, 8.33% is allocated to the than the amount to be received at 58. tion is needed. Investors must understand the advantages these
of food concession  ALLOWED within 9.6 years of pension contribution the amount by 4% per year
EPS. Importantly, even if your basic This reduced amount would remain funds offer beyond taxation. Here are five compelling benefits:
pay exceeds ₹15,000, the maximum *If joined before Sept 2014,
 NOT allowed if it crosses 9.6 years until you reach 60 constant throughout retirement. Liquidity that works for you: Unlike FDs, where breaking
eligible to contribute  YOU must wait for pension (at least till 50)
pension contribution will be capped *Cannot opt for pension before 50 “Employees who attained 58 years it means paying penalties and losing or earning lower interest on
at 8.33% of ₹15,000 which amounts to of age and otherwise eligible for pen- the entire amount, fixed income MFs allow partial withdrawals
₹1,250. This ₹15,000 pensionable sal- Early pension withdrawals barely pay sion may be allowed to defer pension without penalties. Need ₹1 lakh from your ₹5 lakh investment?
How to calculate contribution?
ary is subject to future revisions. later than 58 years but not beyond 60 No problem. Your remaining ₹4 lakh continues to grow. More-
 EPF requires a 12% contribution of each Before 9.6 years of pension contribution
If your monthly pay is₹15,000, you years. In such a case, pension amount over, you can add to your existing investment whenever you have
months' salary Basic pay: 15,000
and your employer will each contrib-  12% each from both employer and employee
will be increased by 4% subject to surplus cash, offering unmatched flexibility to manage short-
ute₹1,800 a month to EPF, totalling Contribution to EPS (@ 8.33%): 1,250 continued pension contribution till term cash flow needs.
 OF 12% employer contribution, 8.33% goes to Taking out share on 6th year: 72 months
₹3,600. Since your basic pay is at the pension scheme the deference period.” said Singh. Deferred taxation for efficient growth: With fixed income
the₹15,000 limit, 8.33% (₹1,250) from Amount contributed: 1250 X 72 = 90,000 If an individual opts for premature MFs, pay tax only when you redeem
 MAX contribution is 1,250 (8.33% of 15,000)
Money received: 91,050 (15,000 X 6.07*)
the employer’s contribution will go
*6.07 multiplier as per Table D of EPF Act
withdrawal of lump sum before 10 Despite some your investments. In contrast, taxes are
toward the EPS. The remaining 3.67% years, the amount received will be risks, fixed imposed on the interest earned on FDs
Your 'pension share' is locked till age 50 if
of employer’s contribution is allo-
cated to EPF, earning a fixed interest
contribution service crosses 9.6 years EPS: Employee Pension Scheme
EPF: Employee Provident Fund
calculated using Table D of EPF Act.
For instance, if one withdraws her income MFs can every year, even if you don’t withdraw
the funds. Bonds, too, don’t give you an
rate of around 8%, determined annu- pension share on the sixth year (72nd play a pivotal option but to pay taxes every year on
ally. The entire employee contribu- month), and her pay was₹15,000 at role in reaching the interest earned. By deferring taxa-
tion goes directly into the EPF. Pension calculation salary is ₹15,000 a month, and has a reach 58 years and completes pen- that time, the amount will be calcu- financial goals tion in fixed income MFs, your returns
After an amendment on 1 Septem- The scheme was designed to offer pensionable service of 15 years, she sionable service of 20 years. lated as ₹15,000 multiplied 6.07 (the stay invested and compound over time
ber 2014, employees earning a basic fixed retirement pension on retire- will get ₹3,214 a month. Keep in mind Anurag Jain, co-founder and part- multiplier specified by EPFO), which enhancing overall returns.
pay of over ₹15,000 per month can- ment for low-salaried people. Unlike that the maximum pensionable salary ner of ByTheBook Consulting LLP, is ₹91,050. If the basic pay was Customisable cash flows: Fixed income MFs allow you to set
not be a part of the pension scheme. If EPF, where the amount you receive is is capped at ₹15,000 per month. said in case of death of the employee, ₹15,000 for these six years with a up a systematic withdrawal plan (SWP) tailored to your needs.
that’s the case, the entire employer’s based on your contribution and inter- Adarsh Vir Singh, founder of Nidhi the family gets a pension equal to the contribution of ₹1,250 (8.33%) a Whether it’s 3% p.a. or 6% p.a., you decide the cash flow. Plus, the
contribution will go towards the EPF. est earned, the pension Niyojan, said apart from member’s monthly pension if he had month, the contribution would tax efficiency of SWPs—where withdrawals consist of both capi-
If you enrolled with EPF before Sep- scheme is a ‘defined con- There’s also an contributing 8.33%, the retired on the day he died or ₹1,000 a be₹90,000. tal and returns—reduces your tax liability while deferring taxes
tember 2014, you could continue put- tribution defined bene- option to opt for pension corpus includes month, whichever is higher. It bene- “Withdrawal of EPS after putting in on the remaining investment. This flexibility and efficiency make
ting 8.33% of your employer’s contri- fit’ social security plan as an early pension 1.16% of wage from the fits his spouse, daughters, and sons, nine years of service isn’t really a via- them an excellent tool for predictable, tax-optimised cash flow.
bution in the pension scheme. opposed to just a defined starting at 50 central government via legally adopted children, subject to ble financial option as you hardly get Potential for higher returns: Fixed income MFs offer a vari-
Employees who contribute to EPS contribution scheme. budgetary support. This prescribed conditions. even the contributed amount back, ety of options—low-duration funds to dynamic duration funds.
and have an eligible contribution ser-
years instead of
Here’s how monthly pension becomes eligi- Early withdrawal thereby keep on accumulating pen- Unlike FDs, they benefit from bond price movements, especially
vice of 10 years will get a defined pen- pension is calculated. 58, but with a ble when an employee If a subscriber visits his account on sion that will ultimately be a saviour in a falling interest rate environment. In the long term, it trans-
sion at 58, or can opt for reduced pen- Consider average salary reduced amount completes at least 10 EPFO site, he can see funds split into at the retirement age,” said Singh. lates into returns exceeding the interest earned by your portfolio.
sion at 50. The amount will be based of the last 60 months, years of eligible service. three heads: employer’s, employee’s Stability and predictability: If you think fixed income MFs
on calculations defined by Employee multiply it by the num- EPFO counts years on a and pension shares. If he is unem- don’t provide visibility of returns like FDs or bonds, think again.
Provident Fund Organisation. ber of years as ‘pensionable service’ half-yearly basis, meaning someone ployed for over 60 days, he can with- Liked this In addition to all the benefits explained, target maturity funds
The Hindustan Times reported that and then divide it by 70, subtracting who completes 9.6 years would qual- draw both employer and employee’s story? Please bring the best of all worlds. With fixed maturity and predictable
EPFO is considering eliminating the any non-contributory period. ify. Service is those years in which he shares. Also when employed, there share it by returns, these funds aim to generate outcomes closely aligned
cap on employees’ share toward pen- If someone is retiring and qualifies was contributing towards EPS. Also, are provisions to withdraw part of the scanning the with their portfolio yield at the time of investment.
sion to allow a higher retirement pay- for the benefit, here’s how much pen- pensionable service will be increased corpus to buy a house, medical pur- QR code. Unlike bonds and FDs, they also allow flexible withdrawals at
out to contribute more money. sion they will receive. If the average by weight of two years, if employees pose or wedding, etc. any time without penalties or constraints. This unique combina-
tion of stability and flexibility makes target maturity funds an
excellent choice for investors seeking return visibility.
What are the risks? Fixed income MFs also carry some risks,

Hedge fund all-or-nothing trades gain traction in options market primarily credit risk (downgrades or defaults in bonds) and inter-
est rate risk (falling bond prices when rates rise). However, these
risks can be mitigated by selecting the right fund category
aligned with your goals and risk appetite.
Bloomberg are using zero-day-to-expiry trading, the reality is that such trades are over the counter sive stimulus in China, escalat- trade policy that could be a Case for fixed income MFs: The benefits of fixed income
feedback@livemint.com listed options, large investors a binary payoff is extremely with multiple counterparts, ing war in Ukraine and ten- drag on profits of companies in MFs over FDs and bonds make them an essential part of any
have increasingly turned to useful to investors focused on estimates for premium spent sions between Iran and Israel those markets. diversified portfolio. They offer liquidity, tax efficiency, custom-

W
ith events from over-the-counter binary con- hitting target returns within in 2024 on such structures run that threaten to boil over. “The chase for upside after isable cash flows, stability and the potential for higher returns—
elections to central- tracts that can hedge tail risks strict risk limits. “Cross-asset from several hundred million A key event was the US pres- election uncertainty and into advantages that bank FDs and bonds cannot match.
bank rate moves to across multiple assets. dual binary option trades have to a billion dollars. idential vote. US stocks have year-end is reflected in ele- Just as retail investors have embraced equity MFs through
wars threatening upheaval in It’s an all-or-nothing play: in picked up around event risk This year has been full of risen in the aftermath, buoyed vated call skews in US indices,” SIPs, it’s time for the same enthusiasm to transform the fixed
markets, investors are increas- exchange for a premium, the this year,” said Herve Guyon, event risks: from elections in by optimism that Trump’s pol- said Tanvir Sandhu, Bloom- income MF space. With a better understanding of their benefits,
ingly seeking pre-determined trade either returns 100% or head of flow strategy and solu- the US, Europe and India to icies will boost share prices. berg Intelligence’s chief deriv- fixed income MFs can play a pivotal role in achieving financial
payoff if they bet right. While nothing. While critics say it’s tions at Societe Generale SA. “live” Federal Reserve meet- But in Europe and China, his atives strategist. “Europe faces goals efficiently. Fixed income MFs sahi hai!
many traders, from mom-and- akin to betting on a sporting While judging the size of the ings, an active Bank of Japan in election brings the threat of tariff risk where hybrid option Radhika Gupta is MD & CEO at Edelweiss Asset Management
pop to systematic hedge funds, event than traditional options market is difficult given all decades, the prospect of mas- tariffs and a more contentious raise leverage, reduce costs.” Ltd. The views expressed are her own.

Check how your NPS How are NRIs taxed on professional fees?
investments are faring Harshal Bhuta not visit India for the service
provision, neither of these
here are very few retirement products that help you accumulate a retirement nest I am an Indian citizen and a conditions applies, and your
egg and one such product is the National Pension System (NPS). It is a market-linked, lawyer by profession. I used professional fees would not be
defined-contribution product that needs you to invest regularly in the funds of your to work as an in-house subject to taxes in India.
choice. The returns are based on the performance of the fund that you choose. There are counsel in a promoter-run If you choose to be gov-
eleven pension fund managers to choose from and one of the ways to do that is by Indian company. I shifted erned under the Indian tax law
tracking the returns. Here is a breakdown of the performance of different funds—equity my residence to the US with and professional fee from the
fund, government bond fund and corporate bond fund—of the private sector NPS. This my family in 2023. The Indian firm is the only income
NPS table show returns for pension fund managers who have completed at least 1 year promoter has recently from India, you won’t need to
offered me the opportunity file income tax return in India,
Returns (in %) Tier-1 account to provide legal services provided the correct amount
from the US. There is no of TDS is deducted. However,
1 year 3 years 5 years Equity fund Government bond fund Corporate debt fund need to travel to India, if you choose to be governed
though I may visit annually ISTOCKPHOTO
by the DTAA provisions, filing
Aditya Birla Sun Life Pension 24.14 12.20 16.49 10.89 6.99 7.64 9.67 6.61 7.58 applicable surcharge and cess) a tax return in India would
for about 15-20 days for ASK MINT
Axis Pension 24.90 NA NA 10.70 NA NA 9.32 NA NA vacation. If I agree to take m N R I TA X AT I O N on the gross amount. become mandatory. Further,
HDFC Pension 25.17 12.16 17.13 11.03 6.75 7.66 9.89 6.75 7.82 up this work, will I be taxed While under the India-US to access the DTAA benefits,
Fund Manager

ICICI Pru. Pension 25.94 13.13 17.65 10.80 6.74 7.42 9.41 6.53 7.36 on the professional fee DTAA, payments made to an you would need to obtain a tax
Kotak Mahindra Pension 25.59 13.45 17.60 10.60 6.74 7.48 9.37 6.38 7.03 income in India? The pro- sions are more beneficial, then individual for professional ser- residency certificate from rel-
LIC Pension 23.86 12.44 16.88 11.07 6.86 7.63 9.18 6.24 7.38 moter will directly wire my you have the option to be gov- vices are covered under Article evant US authorities and sub-
Max Life Pension 25.06 NA NA 10.71 NA NA 9.09 NA NA fees to my US bank account. erned by them instead. 15-independent personal ser- mit Form 10F.
SBI Pension 21.18 11.29 15.79 10.96 6.77 7.46 9.61 6.46 7.42 —Name withheld on request Under Indian tax law, servi- vices (and not Article 12-royal- Harshal Bhuta is partner at
Tata Pension 27.19 NA NA 10.68 NA NA 9.65 NA NA ces you provide would be clas- ties and fees for included servi- P. R. Bhuta & Co. Chartered
UTI Retirement 31.09 14.48 17.96 11.06 6.91 7.36 9.36 6.39 7.42 I assume you are a tax resi- sified as ‘consultancy services’, ces). These fees can be taxed in Accountants
dent of the US and qualify as a and professional fees you will India only if the individual has
Nifty 200 Total Return CCIL All Sovereign Bond-TRI CCIL Bond Broad-TRI non-resident of India (NRI) . If receive would be ‘fees for tech- a fixed base here for perform- Do you have a personal
your professional fees are sub- nical services’, making them ance of the services or if their finance query? Send in your
Returns as on 14 November 2024; 27.46 12.72 17.77 11.80 6.92 7.10 8.91 6.38 8.09 ject to tax in India, examine the taxable in India, since the ser- physical presence exceeds 90 queries at
1-year returns are absolute returns mintmoney@livemint.com
provisions of India-US Double vices will be used by an Indian days in a fiscal year. Since you
Benchmark index and get them answered by
PRANAY BHARDWAJ/MINT Source: Npstrust.org
Taxation Avoidance Agree- company. So your professional will be providing the services
industry experts.
ment (DTAA). If DTAA provi- fees will be taxed at 20% (plus virtually from the US and will
12 TUESDAY, 3 DECEMBER 2024
MUMBAI VIEWS LIVEMINT.COM

OUR VIEW THEIR VIEW

MINT

Honey, who shrank the chatbot?

Even AI needs to count calories
Shrinkflation is old but what it’s doing to artificial intelligence is new—if not all that surprising

of juice now apparently cater to the So, what’s causing our loquacious AI
minimalist family of two. chatbots to become the strong and
Shrinkflation is everywhere, so it silent types? There are new awkwardly
should not have been surprising to see imposed (undeclared) limits on the
it reach the land of Generative artificial number of tokens, not just in input, but,
intelligence (GenAI), which is all the more importantly, in the output. Each
rage nowadays. token costs computational power, and
As is more or less always the case when millions of users are asking every-
with this field of technology, every thing from “What’s the meaning of
NILESH JASANI manifestation of a broader phenome- life?” to “Why does my cat ignore me?”
is a Singapore-based innovation investor non in AI is worth talking about. those costs add up faster than a teen-
for LC GenInnov Fund. When AI goes on a diet—The great ager’s text messages.
language model squeeze: Until a few Anecdotally, a single GPT-4 query
months ago, our trusty digital compan- devours enough electricity to power a

Don’t blame education

ions could spin out coherent, insightful small LED bulb for an hour. Multiply
answers faster than I could say “algo- that by millions of users, and you’re

S
hrinkflation. It’s a word that rithm.” Those verbose days feel like a looking at a power bill that would make
would’ve sounded like some sci-fi distant utopia. Now, our silicon com- a Bitcoin miner blush.
phenomenon back in my college panions increasingly channel their To keep the virtual lights on without

gaps on policy settings days in the 1990s. And yet, my first

encounter with the essence of shrink-
flation was in real life.
Our college town had this quirky sys-
inner Hemingway, though minus his
genius for concision.
A few weeks ago, OpenAI’s ChatGPT
would expound on a topic with the
emptying their coffers or charging us
directly, AI companies trim the fat and
cut back on the ‘quality calories.’ This
shrinkflation may be a stop-gap, a way
tem of shared auto-rickshaws, almost a enthusiasm of a history professor on to balance the books without charging
budget limousine ferrying a crowd of caffeine. Now, it starts strong, building us outright. But I suspect we’ll soon see
A divergence in public schooling might well have led India’s economy to lag China’s. But this students for a pittance. As fuel prices up to a grand point, and then—bam! pricing models based on how much
surged in response to the Iraq War, our It stops mid-sentence, leaving you information you really need.
should arguably be attributed more to complex social constraints than to any policy design kind-hearted auto drivers didn’t hike hanging like a season-finale cliff- A simple answer? Free. Want a PhD-
their rates. Instead, they creatively hanger. It’s as if the AI chatbot took a level dissertation? That’ll be $5, please.
solved the problem by squeezing more vow of silence right when things were Just as airlines charge for extra baggage,
of us into each rickshaw. getting interesting and without easy perhaps we’ll be charged for every

T
hree-quarters of a century after of all children attending classes 120 years ago, First five. Then seven. And soon, we ways to make it continue. token exceeding a free tier.
freedom from British rule, Nehru- the People’s Republic of the 1950s focused on were a veritable sardine can on wheels, Then there’s Perplexity, a rival AI Gratitude in the Age of Shrinkage: But
clinging to each other and the very service, which has adopted minimal- here’s where the Thanksgiving spirit,
vian policies continue to animate primary and secondary schooling for its multi- concept of personal space. ism with the zeal of a decluttering guru. which began last week, kicks in. This
debates on the extent to which they tudes, while India laid policy emphasis on insti- That was the original ride-sharing It offers responses in rapid-fire bullet shrinkflation, annoying as it is, reminds
aided or hobbled the emergence of tutes of higher education. As China acquired a economy, minus the app installed on points that read more like a SparkNotes us of the old adage to ‘be grateful for
India’s economy. Even before we wide base of students who could read and write, smartphones and algorithms for surge version—or worse, like a to-do list— what we have’—or, in this case, what we
made a decisive shift in 1991 to reduce the state’s we got a small but well educated crowd of col- pricing. than an insightful answer. had. In a world where shrinkflation
And it wasn’t just our rides: the idlis And what about Google’s Gemini? shrinks even our answers, this Ameri-
role, a leftist critique sought to skewer the pol- lege graduates and specialists. Also, Chinese we picked up at nearby cafés got It’s like the polite friend who tries to let can festival serves a reminder to savour
icy choices of our formative years for investing school-leavers went in for vocational training in smaller every trimester, a blessing for you down as gently as possible, offering the good parts, the moments when
in elite education at the cost of mass learning. greater proportion and were more inclined to our waistlines that our scrawny frames a ‘concise summary’ instead of the full LLMs do give us that dazzlingly precise
The economy’s rise and passage of time have study engineering than us. This gave China’s did not need. story. At this rate, the days of Large answer or inspiring insight. Chatboxes
not eased that criticism. A recent study by Nitin labour force an edge for its globalization-era Back then, there was no fancy term Language Models (LLMs) communi- are the children of the post-free-social-
like ‘shrinkflation.’ cating in emojis and haikus may be media (XaaS) era. Their pricing models
Kumar Bharti and Li Yang of the Paris School of rise as the world’s factory, drawing millions off Fast forward to today. Shrinkflation pretty close. will evolve further over and above the
Economics’ World Inequality Lab compares the farms, even as we made rapid progress with is as ubiquitous as selfies at a tourist Effectively, where once you could subscription costs, and we should be
approach taken by India and China to public desk jobs in service industries for smaller spot. Open a bag of chips, and you ask about the history of philosophy and thankful we are not there yet this year.
education over a dozen decades—from 1900 to cohorts of people who could forge careers and might wonder if you’ve purchased a get a dissertation, you now get: “Plato As for me, I think it’s time for a
2020–to examine its economic impact. That it move up. In recent decades, India has tried the packet of air with a side serving of dis- said some stuff. Aristotle disagreed. break—to recharge, reflect and perhaps
appointment. “Family-sized” cartons Skip to Nietzsche. The end.” enjoy a cup of Kafkian...
makes a difference over the long-term wasn’t in Chinese formula, but with patchy results.
doubt. That it might explain divergent growth Plausible as that chain of cause-and-effect is,
paths between the two economies is what the India’s gaps in basic education are arguably
work of Bharti and Yang would have us think. less the result of early policy neglect than social
With China’s per capita income almost five constraints that are taking rather long to ease.
times India’s today, it is easy to forget that half a Although budget outlays could have been
century ago, the two were more or less at par as larger, granted, a mission to educate everyone www.livemint.com New Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Wednesday, December 3, 2014 Vol.8 No.288 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 32 PAGES

CORPORATE: SC allows Sahara

economies struggling to emerge from poverty. was indeed mounted. It yielded lower dividends to sell four properties >9
COMPANIES: United Bank names Vijay
Mallya’s UBHL as a wilful defaulter >3

Beijing had a head-start over New Delhi in than our thrust on higher learning. Even today,
POLICY: TARC recommends government
bring back fringe benefit tax >6
VIEWS: Building state capacities for
twitter.com/ facebook.com/ plus.google.com/ pinterest.com/
livemint mint.live +livemint livemint/ welfare >31

easing economic controls and letting private of the millions who fare poorly on scholastic
SENSEX 28,444.01 æ 115.61 NIFTY 8,524.70 æ 31.20 DOLLAR `61.89 æ 0.13 EURO `76.99 æ `0.29 GOLD `26,335 Æ `370 OIL $71.63 æ $0.91

Cabinet clears POLICY REVIEW

The endless QUICK EDIT
Bill allowing
death penalty RBI doesn’t play wait for a Rajan
holds on
profit act as an incentive for value generation. aptitude, most are from groups historically for hijackers
ball but govt does
clean-up
in Bhopal R aghuram Rajan has

People like getting what

done well to indicate
that one of the conditions
before monetary easing
B Y TA RU N S H U K L A , can begin next year is the
P RASHANT K . NANDA
S HREEJA S EN
&

30 state of the government

budget. The Reserve Bank

Also, it was a rural rebellion against collective excluded from academic pursuits. The unjust
···························· RBI puts rates on hold of India (RBI) governor has
NEW DELHI
but indicates easing MARKET REACTION YEARS AFTER given an unusually explicit

T he Union cabinet on Tues-

day cleared a strong anti-hi-
jacking Bill that provides for
likely early next year;
govt hikes excise duty
RBI’s indication that a change in the monetary policy stance may be likely early
next year cheered the bond market. Bond yields fell below 8% for the first time India’s worst
guidance that interest rates
could begin to come down
early next year as long as
since 22 July 2013.
industrial accident

they think is free stuff

stringent punishment, including three things happen: infla-
the death penalty, for the hijack on petrol, diesel 10-year bond yield (in %) tion continues to retreat,
of Indian airplanes, 15 years 9.2 inflationary expectations
after an Indian Airlines aircraft B Y A NUP R OY & 8.825 B Y N I K I TA M E H TA drift down and fiscal devel-

farming that led China’s market reforms, while dictates of caste have clearly softened from
was commandeered by terrorists J OEL R EBELLO 31 Dec 2013 nikita.m@livemint.com opments are encouraging.
during the tenure of a previous ···························· 9.0 ···························· He has tossed the ball back
Bharatiya Janata Party-led (BJP- MUMBAI BHOPAL into the court of the
led) government.
Also approved were changes
to the Companies Act, 2013, a
move designed to make it easier
for companies to do business in
T he Reserve Bank of India
(RBI) on Tuesday spurned
finance minister Arun
Jaitley’s calls for an interest rate
cut, but said it would start loos-
8.8

8.6
T hirty years on from the
Union Carbide gas leak trag-
edy, Bhopal is a city defined—
and divided—by the disaster.
On the basis of the deaths that
finance minister, who has
been busy telling RBI to
bring down the cost of cap-
ital.
Rajan seems to have

from government.
India. ening monetary policy early in took place between 3-6 Decem- become more confident

it was a lack of dollars to pay for oil imports that Ambedkar’s school-days 12 decades ago, when
“The (anti-hijacking) Bill pro- the new year if inflation trends ber 1984 from the leak of methyl about prices. He had said
vides death punishment for the remain benign and the fiscal sit- 8.4 isocyanate (MIC) gas from the in his September policy
offence of hijacking, where such uation remained under control. pesticide making factory of statement that the January
offence results in the death of a As if in response, the govern- Union Carbide India Ltd (UCIL), 2016 inflation target was
hostage or of a security person- ment leveraged the recent drop 8.2 the state government divided the subject to upside risks; he
nel; or with imprisonment for in the price of oil to increase 7.97 capital city into two. spoke of balanced risks this
life and the moveable and excise duty on petrol by `2.25 a 2 Dec 2014 A total of 62.6% of the popula- time around. It is the subtle
immoveable property of such litre and diesel by `1 a litre with- 8.0 tion of Bhopal was affected, change in language that
persons shall also be liable to be out affecting the end-price of the while the rest was unaffected. central bank watchers live

triggered ours by exposing a gaping hole in our he was forced to be a backbencher by teachers
confiscated,” the government products. The move is expected Authorities labelled 36 wards off. Rajan’s statement
said in a statement late in the to boost government revenue by R/$ (inverse scale) SENSEX seems to set the stage for a
evening. around `4,000 crore by the end 61.89 28,518 28,444.01 TURN TO PAGE 12® percentage point cut in
4.58pm 9.15am 3.30pm
Indian Airlines (now Air of March 2015. The hikes are the policy rates in 2015, if one
India) flight IC-814 was hijacked second since mid-November. ALSO SEE assumes the neutral real
on its way back to Delhi from The repurchase or repo rate, 61.99 policy rate is 1%.
9am >The media’s role in the aftermath >P13
Kathmandu half an hour after at which RBI lends overnight
take off on 24 December 1999. funds to commercial banks,

statist model of autarky. The remedies differed aware of his caste identity. Yet, not all educators
Taken over by five Pakistani stays at 8% and the cash reserve
hijackers with 180 passengers ratio, or the portion of deposits
and crew, the flight was forced to that lenders need to keep with

JOHN STOSSE L
make a detour to Kandahar in the central bank, remains at 4%,
Afghanistan. as governor Raghuram Rajan
The hijacking drama contin- waits for a confirmation that low
ued for several days with family inflation is here to stay. Source: Bloomberg
members of passengers pressur- “A change in the monetary
ing the Indian government to policy stance at the current AHMED RAZA KHAN/MINT

accordingly. However, the Bharti-Yang study are equally earnest in aiming for equitable
help free the hostages. An agree- juncture is premature,” RBI said.
ment was reached for the release
of the passengers in exchange
for three jailed militants—
“However, if the current infla-
tion momentum and changes in
inflationary expectations con-
The govt and RBI are on
Maulana Masood Azhar, Ahmed
Omar Saeed Sheikh and Mush-
tinue, and fiscal developments
are encouraging, a change in the
the same side: Rajan
taq Zargar. monetary policy stance is likely
Then foreign minister Jaswant early next year, including out- BY I RA D UGAL a healthy dialogue that goes
Singh personally escorted the side the policy review cycle.” ira.d@livemint.com on and obviously the finance

suggests that the most consequential top-down learning outcomes. A Nehruvian-era emphasis
freed militants to Kandahar—a The next monetary policy ························· ministry internalizes the con-
move that was widely criticized. statement is due only in early MUMBAI cerns about inflation and rec-
“After the hijacking of Indian
Airlines Flight IC-814 in Decem-
ber, 1999, it was felt necessary
February, but RBI’s statement
that a change may be possible
outside the review cycle indi-
T he government is com-
fortable with the Reserve
Bank of India’s (RBI’s) sug-
ognizes that we are entrusted
with the task of controlling
inflation and creating sustain-
for providing the award of death cated that a cut in the repo rate gested target of anchoring able growth. So we are not
penalty to perpetrators of the act could come even earlier, cheer- inflation at 4% in the medium combatants. We are on the
of hijacking. The incident of ing the bond market. One basis term, within a band of 2%, same side. Sometimes they
9/11, where aircraft were used as point is one-hundredth of a per- said RBI governor Raghuram have different views and we

versus bottom-up difference lay in public edu- on higher education is only one part of India’s
weapons, also created the need
to further amend the existing
Act,” the government added.
centage point.
Bond yields fell below 8% for
the first time since 22 July 2013.
Rajan in a post-policy interac-
tion with print media journal-
ists. Rajan acknowledged that
try and persuade each other
of those views. I think the
finance minister has said
How Gurgaon was built,
The Anti-Hijacking (Amend-
ment) Bill, 2010, was introduced
The yield on the benchmark 10-
year bond closed at 7.97%, down
while some transmission of
easier liquidity conditions has
publicly that ‘these are my
views but ultimately the deci-
licence by licence, govt by govt
in the Rajya Sabha in August from 8.06% on Monday. Bond taken place in the markets, sion is the RBI’s’. We are very
2010. prices and yields move in oppo- banks are still to bring down respectful of the views of the BY HOWINDIALIVES.COM between real estate developer DLF Ltd
site directions. lending rates. Competitive government and we try and feedback@livemint.com and Robert Vadra, the high-profile son-
TURN TO PAGE 2® pressure will goad banks to accommodate the views to ···························· in-law of Congress president Sonia

cation, not market orientation. While both story. And it’s a story that offers a lasting lesson: NOTE TO READERS
TURN TO PAGE 2®

ALSO SEE
lower rates, he said. Rajan
added RBI is looking at ways
to give banks more leeway to
the extent we can, and then
explain where we can’t and
why we can’t. Its a very cor-
G urgaon, the Haryana city on the
southern outskirts of New Delhi, is
known for its gleaming glass-and-steel
Gandhi, ostensibly with the tacit, if not
active, support of the state government
then controlled by the party.
The Media Marketing Initiative on convert loans into equity at dial relation on every facet. shopping malls, residential towers, food Against the backdrop of this
Page 9 is the equivalent of a paid- >Tamal Bandyopadhyay | Rate cut a few the time of loan restructur- Has the government accepted courts and call centres. It’s also a base controversy, which still refuses to die
months away >P8 ing. Edited excerpts: the 4% (+/-2%) inflation target? for companies ranging from automakers down, Mint takes a look at all land
for advertisement, and no Mint >Gaurav Kapur | Move signals easing in
journalists were involved in 2015 >P8 The government is as much such as Maruti Suzuki India Ltd and Hero allotments in Gurgaon in the past 34
creating it. Readers would do well >Soumya Kanti Ghosh | Pragmatic and
Was there pressure from the on the same page as far as the MotoCorp Ltd to high-tech firms like years, by which government and to
to treat it as an advertisement. well-intentioned >P8 finance ministry to cut interest desirable levels of inflation as Cognizant Technology Solutions Corp. which developer. See Page 15

countries have reached high levels of school A level learning field is a worthy aim, even if its
>Shilpa Kumar | 2015: it could be a good rates? we are. We picked the 8% and and HCL Technologies Ltd. For a detailed and interactive
year >P8 The word pressure is per- In 2012, Gurgaon found itself in less visualization and a map-based view of
Mint is also available for R8 with >Rates on hold but relief may be in sight haps misused. I think there is TURN TO PAGE 7® salubrious limelight when allegations the allotments, go to
Hindustan Times in Delhi-NCR only >P20 surfaced of wrongdoing in land deals www.livemint.com/gurgaonplots

enrolment after starting with less than a tenth benefits are too far over the horizon to foresee.

THEIR VIEW

Our new political-economy consensus needs a rethink

BJP governments have decided to revert to tion’s policy that disallowed privatization of Policy shifts are taking place as the BJP’s with traditional political positions were not
PUJA MEHRA the pre-2004 old pension scheme. The uni- Maharatna companies. “Why would we economic ideology is fuzzy. A Thatcherite sorted out. The consensus could not sustain,
fied pension scheme announced by the Cen- divest ourselves of highly successful Maha- rollback of “the frontiers of the state” was and it frayed, as Manmohan Singh said a year
tre ahead of voting in Haryana doesn’t go ratnas like BPCL,” oil minister Hardeep Puri always going to be difficult, given that India’s after he became PM: “The political consensus
that far, but it too assures employees of a said in June. BPCL’s top brass has since given right, like the left, is anti-privatization. that has been the bedrock of the reform pro-
pension that is half the average salary drawn Andhra Pradesh Chief Minister N. Chandrab- The government is steadfast in imple- cess since 1991 has been implicit… successive

R
ecent assembly polls have helped in the last year before retirement. abu Naidu a commitment for a petrochemical menting the BJP’s political agenda—Article governments in the last 15 years have broadly
make clear a new political-economy The pension bill will rise only slightly, say complex, a project that had 370 has been abrogated, a followed this policy orientation… [Major]
consensus in India. Our politicians, officials defending the scheme. But once the been on ice for 10 years. Ram temple has been built issues of reform, ranging from tax and tariff
who can’t seem to agree on very much, have principle of no assurance is done away with, It has been suggested The policies our in Ayodhya and the Citizen cuts to changes in FDI ceilings, have been the
come to view cash transfers to women as a pension schemes inevitably become that the government is Amendment Act is being subject of a discreet consensus [that] … is
must-have policy. This congruence of posi- unfriendly to taxpayers. A signal has gone out finding the going tough in parties agree implemented. But its eco- rarely stated in public, but has often been dis-
tions is visible in the schemes instituted by that the government is susceptible to pres- its third term, which is nomic agenda seems like a played in the execution of policy… Yet today,
BJP-ruled Maharashtra, India’s richest state, sure groups. The pension reform reversed resulting in policy rever-
upon are not work-in-progress. The it is saddening to see this political consensus

is consulting editor, Mint, and

and poor opposition-ruled Jharkhand.
Handouts have come to be a powerful
was rolled out by the A.B. Vajpayee govern-
ment and had held for 20 years.
sals. That small coalition
partners forced the roll-
reformist. The political economy of inter-
est groups has not been
weakening.”
The BJP’s Arun Jaitley had engaged with
the author of ‘The Lost Decade
(2008-18): How India’s Growth
economic lever to manage political discon-
tent in times of persistently high food prices
The third issue on which policy positions
have converged is privatization. The Union
back of a civil-services
advertisement calling for
challenge is to sorted out. Farm laws had
to be taken back for this
his party leadership to define its economic
agenda. He introduced our inflation-target-
Story Devolved into Growth compounded by a nagging jobs crisis and a budget of February 2021 had announced a lateral entries for govern- chalk out an reason. And the political ing framework to manage tensions among
Without a Story’ decade of stagnant rural wages. Economist grand sale of all government companies, save ment jobs supports the clout of government interest groups on interest rates and infla-
Neelkanth Mishra has estimated that half a few critical ones. The policy notified three contention of commenta- agenda that is employees has prevailed tion. But that reform is being contested.
the states are cumulatively spending ₹2 tril- days later said the Centre would retain bare tors that reforms are get- over Vajpayee’s pension Today’s problems need a new consensus,
lion a year, or 0.6% of national GDP, on these minimum control over commercial enter- ting reversed. They’re on reform legacy. and constructing it would require a coherent
programmes. More may follow as pressure prises and close down or privatize the rest. to something, but they misjudge the cause. The old consensus was formed by a Con- resolution of many matters—institutional,
grows on policymakers to resolve food sup- The accompanying public narrative pre- Policy errors necessitated handouts for gress government in the early 1990s. That social and geopolitical. But the BJP would
ply bottlenecks or see inflation harden. sented the policy change as a reversal of Neh- women. Had the budget’s capex-welfare policy agenda was well understood by the need someone of Jaitley’s stature, skill and
The second big change is in the thinking ruvian socialism, an ideological rejig of the spending strategy worked well, these would 1991 reformers but was not publicly debated. temperament who can engage with the party
on pensions. Cutting across party lines, gov- economy by peeling back the state. not have been needed. Growth would have Then prime minister P.V. Narasimha Rao leadership as well as political opposition for
ernments are re-introducing assured pen- But, in practice, the BJP-led NDA govern- taken care of incomes and bottleneck-free sold the reforms as a continuation of Nehru- defining the country’s economic agenda by
sions for employees. In many states, non- ment may have relapsed to the UPA coali- supplies of inflation. vian policies to the party; their contradictions resolving complex trade-offs.
LIVEMINT.COM VIEWS TUESDAY, 3 DECEMBER 2024
MUMBAI 13

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

Mauritius is a strategic gateway CoP-29 cop-out: Clean power

needs to gain further appeal
for our collaboration with Africa The world must help poor countries decarbonize their economies

In Mauritius, India has a reliable and uniquely located partner that offers Indian businesses easy access to African markets

ISTOCKPHOTO

DAVID FICKLING
is a Bloomberg Opinion columnist covering
climate change and energy.

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

Y
ou can regard the depressing
denouement of the CoP-29 climate

M
auritius is an important gateway conference in Baku, Azerbaijan, as a
for India’s strategic and economic sort of diplomatic echo of the US election The reliance on fossil fuels remains much
partnership with Africa. Located result three weeks earlier. In the US, pro- too high across the world AP
in the Indian Ocean, Mauritius is gressives found themselves blocked by a
in a position to leverage its geo- coalition of traditional Republicans and a to the point, it’s also failing to compete with
graphic location, robust eco- faction of working class and non-Caucasian the hard-money allure of fossil-intensive
nomic policies and regional agreements to facili- supporters whom they’d regarded, per- development.
tate trade and investment between India and haps naively, as their natural allies. At the Gabon, a central African member of the
Africa in consonance with India’s Africa strategy as UN climate conference in Baku, rich Organization of the Petroleum Exporting
laid down by Prime Minister Narendra Modi. With nations found that efforts to reduce their Countries (Opec), is a case in point. With
the African Continental Free Trade Area (AfCFTA) own emissions and fund climate pro- 2.5 million people, it often receives as
reshaping the continent’s economic landscape, grammes elsewhere in the world bought much foreign direct investment as the
Mauritius’s strategic importance to India is them little favour with developing coun- Democratic Republic of Congo, home to
expected to grow. tries most at risk of global warming. more than 100 million. Or take Guyana, the
The relationship between India and Mauritius Both situations are powerful examples of world’s fastest-growing nation. It took in
is rooted in shared history and cultural ties, with a aspirational politics. Since the 19th cen- more FDI last year than Taiwan or the Phil-
large Indian diaspora in Mauritius forming a natu- tury, conservatives have marketed them- ippines, and twice as much as the entire
ral bond between the two nations. This founda- selves by arguing that their policies were Caribbean.
tion has been complemented by decades of eco- the best way to achieve the wealth and Of the $31.3 billion in FDI that went to
nomic cooperation. India has been consistently independence sought by working-class the 45 least developed countries in 2023,
ranked as one of Mauritius’s largest trading part- voters. Those opposed to climate action more than a third flowed to seven nations
ners, with bilateral trade reaching $697.4 million make a similar pitch to low and middle-in- —Chad, Mauritania, Mozambique, Sene-
in 2023. come nations: Environmentalism is a pro- gal, Sudan, Uganda and Tanzania—which
A significant milestone in this partnership was tectionist plot to keep poor nations poor. are operating or building petroleum export
the signing of a Comprehensive Economic Coop- Only fossil fuels can provide the develop- projects.
eration and Partnership Agreement (CECPA), ment you need to grow wealthy. Rich What can the world’s rich nations offer
which came into force on 1 April 2021. This not agreements within African regional blocs such as itime security, stability and prosperity in the nations can never do enough to repay the as a substitute?
only facilitates trade in goods and services, but also COMESA (Common Market for Eastern and Indian Ocean Region. Mauritius, situated at a stra- carbon debt they’ve incurred. The advantage of petroleum is that oil-
creates a framework for collaboration in high- Southern Africa) and SADC (Southern African tegic location in the western Indian Ocean, is a key It’s a potent argument because there’s a fields and terminals both borrow money
growth sectors such as pharmaceuticals, informa- Development Community) further strengthen partner in advancing India’s maritime diplomacy. grain of truth to it. Consider the 86 coun- and earn export revenues in US dollars,
tion and communication technology, biotechnol- Indian companies’ access to African markets. Defence cooperation forms a significant part of tries the World Bank counts as ‘high immunizing them against the currency cri-
ogy and financial services. Through CECPA, An economic transformation that spells invest- this partnership. income.’ After the traditional colonial pow- ses that plague poor countries. If you used
around 310 exports items from India (including ment opportunities: Mauritius has undergone India has provided Mauritius a $100 million ers of Europe, Japan, North America, and greenbacks in 2021 to finance a wind farm
agricultural products, textiles and electronics) a significant transformation over the years, defence line-of-credit, which underscores the Oceania and their immediate neighbours outside Cairo, you’d have been in trouble
have got market access at concessional customs emerging as a financial hub. Its policies, such as depth of this relationship. These measures in the Caribbean and Eastern Europe, the this year when the Egyptian pound fell to
duties in Mauritius. Indian service providers got tax incentives, streamlined regulations and infra- enhance Mauritius’s ability to monitor its maritime largest group is of oil exporters. about a third of its value back then. There’s
access to around 115 sub-sectors within 11 broad structure development, have created a business- domain and secure vital trade routes, aligning with Thanks to oil, the Arabian peninsula has little prospect that your consumers will be
service sectors, including professional services, friendly environment that has attracted foreign India’s broader objective of countering Chinese the diplomatic clout to make or break cli- able to pay electricity tariffs high enough to
computer related services, research and develop- direct investment inflows of approximately $340 influence in the Indian Ocean Region. mate policies. To countries still climbing cover your interest payments.
ment and other business services. Mauritius got million in the first half of 2024. Indian companies A shared vision for the future: Mauritius’s eco- the development ladder, the rapid growth The best answer is for rich nations to
preferential access to Indian markets through over like Sun Pharma has established vaccine produc- nomic strategies and alignment with India’s objec- of China and India (which together burn recognize that climate change is truly a cri-
600 tariff lines . tion facilities in Mauritius to serve African tives underscore its pivotal role in shaping the 70% of the world’s coal) looks like an sis and act accordingly. A $650 billion issu-
Mauritius as a bridge: The island nation’s role as nations, while Indian information technology future of India-Africa trade and cooperation. The attractive advert for a similar fossil-fired ance in 2021 of the International Monetary
a conduit to Africa is reinforced by its membership firms have set up software development hubs to nation’s emphasis on innovation, skill develop- road to wealth. Fund’s Special Drawing Rights—an
of the AfCFTA, which integrates 54 African nations cater to the growing African tech market. ment and public-private partnerships also aligns Against that backdrop, global summits, obscure quasi-currency mostly known
into a single market of over 1.3 billion people with a Cross-border financial flows have expanded sig- well with India’s growth and Africa strategy. like democratic elections, often come only to central bankers—played a decisive
combined GDP of $3.1 trillion. Through AfCFTA, nificantly since the implementation of the CECPA. In Mauritius, India has a stable and reliable down to judgement calls about which side but unheralded role in cushioning poor
intra-African trade is expected to grow by 52% by Indian banks and fintech companies have part- partner in an important part of the world that pro- is most likely to enrich those at the bottom countries against the damage from covid.
2025. Mauritius’s active role in AfCFTA, combined nered with Mauritian firms to develop innovative vides Indian businesses easy access to African of the heap. Wealthy climate-conscious Some $69 billion of the total is now being
with the benefits of CECPA, makes it an ideal base financial solutions tailored for African markets. markets. This partnership, bolstered by shared countries need to accept that they’ve been diverted to climate funding.
for Indian businesses to access Africa’s vast market. There is synergy between Mauritius’s financial cultural ties and aligned economic goals, ensures losing that argument. What’s needed is a far more dramatic
The use of English as a language, availability of a expertise and India’s technological innovation that mutual benefits and long-term growth. By lever- Consider the haggling over upgrading programme for poor countries to buy the
skilled workforce and strong IT infrastructure can foster a dynamic ecosystem to support trade, aging Mauritius’s unique position, India is not the $100 billion in climate finance per year vast numbers of solar panels, batteries and
make it particularly attractive for Indian IT and investment, economic growth and various south- only securing its strategic and economic interests, promised at the 2009 Copenhagen meet- wind turbines the world can produce.
IT-enabled services companies looking to expand south collaborations. but also contributing to the broader region’s pros- ing to $300 billion a decade hence. Those funds might not generate a good
their African presence. Maritime security and India’s Sagar vision: perity. This partnership exemplifies the power of The sum is a pittance compared to the return in the strictest financial sense. The
Further, Mauritius’s well-established financial Beyond economic collaboration, Mauritius is inte- collaboration, paving the way for a future of trillions needed, as my colleague Mark benefit the world will get if every country
institutions provide a reliable perch from which to gral to India’s Sagar vision: Security and Growth shared growth, stability and opportunities in the Gongloff has written, especially when one is able to industrialize and grow wealthy on
navigate complex regulatory environments across for All in the Region. Launched in 2015, Sagar Indian Ocean Region and Africa. considers how little is new funding and the back of clean energy, however, will be
the continent. The country’s preferential trade underscores India’s commitment to ensuring mar- These are the author’s personal views. how much consists of standard loans. More vastly greater. ©BLOOMBERG

MY VIEW | A VISIBLE HAND

Long live the revolution of life-altering AI technology

Most of us have grown up in the computer 150 years ago, the ‘genomics’ revolution new nucleotides, allowing for combinations done by using block-chain technology.
NARAYAN RAMACHANDRAN age and easily recognize the ‘0-or-1’ digital really only began 50 years ago when Fre- that are not present today in nature. Most India has already made a beginning in
building blocks that go into an 8-bit code. A drick Sanger first ‘sequenced’ the complete applications of these advancements in the synthetic biology. To mix metaphors, the
single 8-bit code represents a letter like ‘A.’ genome of a virus. The word ‘sequenced’ near future will derive from the ability to intersection of software and biology is a nat-
Combinations of this 8-bit code then repre- refers to the ability to observe and read synthesize proteins. These proteins can per- ural sweet spot for our scientific DNA. While
sent words, language, programs and soft- genetic code. The human genome project form specific intended functions—say, to the capital expenditure for research in this

S
uddenly, it appears, the worlds of ware. The biological world operates in a was completed in 2003, sequencing 3 billion create a drug, substitute a current chemical field is much greater than that for pure soft-
technology and biology are colliding broadly similar way. Five nucleobases called letters and about 25,000 in animal feed or a deter- ware, it is much less than what is required for
at high speed. Progress in the field of Adenine (A), Cytosine (C), Guanine (G), Thy- genes. The speed and cost gent, or be the key ingredi- the manufacture of semiconductors.
artificial intelligence (AI) has been dramatic mine (T) and Uracil (U) function as the fun- of sequencing has changed Synthetic ent in a biofuel. To this we can add India’s ability to inno-
in recent years and this has accelerated the damental units of all genetic code. These dramatically in the last 20 Together with this great vate and create applications in a frugal man-
exploration of promising new pathways and nucleobases form molecules called nucleo- years. biology could promise, unknowns and ner. This sets up the possibility that India’s
technologies in biological sciences. Recog- tides that combine in units of three called Synthetic biology is the risks remain. We still do not scientists can synthetically create cheap bio-
nizing this, the Nobel Prize committee codons to make up the 20 naturally occur- field that lies at the inter-
lead to several know exactly how a single- logical substitutes for drug development,

is chairman, InKlude Labs. Read

awarded all three Nobels for 2024 in sci-
ence—for Physiology, Chemistry and Phys-
ring amino acids. DNA is made up of long
chains of nucleotides that form a double
section of biology and
engineering. In recent
breakthroughs, cell organism works. Scien-
tists can engineer and print
alternative energy sources and food.
One particular area of drug development
Narayan’s Mint columns at
www.livemint.com/
ics—to scientists who have approached
their fields from the vantage point of AI. The
helix. The bases in DNA pair up, with Ade-
nine pairing with Thymine and Cytosine
years, it has become possi-
ble not only to read the
including drugs proteins, but they may not
function exactly how they
is the synthetic creation of biological cells
called ‘phage,’ which are viruses that can
avisiblehand prize for Physics was awarded jointly to pairing with Guanine. And these 20 amino biological code, but also that work much intended. Since we are perform the function of antibiotics against
John Hopfield and Geoffrey Hinton for acids in turn combine to make up all the pro- synthetically engineer bio- reverse engineering harmful bacteria. As the latter’s resistance to
foundational discoveries and inventions teins in the biological world. All physical logical ‘bits’ based on the A, better on us nature, we do not have a chemical anti-microbial drugs grows with
that enable machine learning with artificial stuff that’s biological has proteins. C, G, T/U building blocks. ‘simulator’ that can take their overuse, evolving phage therapies offer
neural networks. The Nobel prize for Remarkably, all life can be represented by We are very early in this code and work it through to a promising alternative.
Chemistry was awarded to David Baker for this code. There is a certain universality to revolution. Far more is unknown than a conclusion (something we can easily do for It seems likely that what cyber-security
computational protein design and jointly to this, which means that a single-cell bacte- known at this juncture, but a few remarkable digital computing). software and AI are to this age, synthetic
Demis Hassabis and John Jumper for pro- rium or complex animal like a human being feats have been achieved. As with AI, even as science marches on, biology will be to the next one.
tein structure prediction. The prize for can be rendered by this code. This sets up Today, scientists are able to design and ethical and societal considerations will need P.S: “Biology is the most powerful technol-
Physiology was awarded jointly to Victor the intriguing possibility that this code can print a sequence of biological bits which in to be tackled. One approach could be to ogy ever created. DNA is software, proteins are
Ambros and Gary Ruvkun for the discovery be ‘read,’ ‘edited’ and ‘programmed.’ Even turn can generate proteins and enzymes. It require that scientists record every single hardware, cells are factories,” says investor
of microRNA and its role. though DNA was identified in cells nearly has also become possible to synthesize two bio-bit ever engineered, which could be Arvind Gupta.
14 TUESDAY, 3 DECEMBER 2024
MUMBAI BUSINESS OF LIFE WELLNESS LIVEMINT.COM

NARA.GETARCHIVE.NET

A little attention can

build deep connections
To build a life filled with
ISTOCKPHOTO

authentic relationships,
be proactive, seek out
like-minded people, and
lend time and care to
nurture your tribe
To master the
Jayanthi Madhukar
feedback@livemint.com
deadlift, go the
trap bar way
L
oneliness may almost be an epi-
demic today, but it still remains a
taboo topic. How many of us
bother to bring up the subject in a
social conversation? And if we do
The trap bar may look clunky but it’s a
discuss it, do we know the strategies to over- safe bet to practice a deadlift
come it? To read books on the subject is to
understand that the first step to dealing with
loneliness is to develop the courage to confront Pulasta Dhar
it” For many, the journey begins with recogni- feedback@livemint.com
zing loneliness without shame.

I
Sameer* (name changed on request), a t’s hexagonal. It’s almost too clunky to pull out of the bar holder
young widower in his 40s, speaks candidly in the gym. And it has a huge space in between that most peo-
about his experience over an email interview ple don’t know what to do with. Well, say hello to the trap bar,
with me. “After my wife’s death four years ago, also known owing to its shape, as the hex bar. The credit for creat-
I felt isolated,” he writes before sharing details ing the trap bar goes to weightlifter Al Gerard owing to a lower
of how he dealt with it. “I began setting aside back injury he was suffering from. According to Oldtimesstrong-
an hour each day to sit with my grief, acknowl- man.com, a website that documents stories of powerlifters from
edging it without judgment. The rest of the the past, the trap bar came to be in the mid 1980s. And if tales are
day, I committed to activities that made me to be believed, Gerard managed to deadlift 725 lbs (454kg) using
feel more connected to myself and others.” the trap bar.
Sameer found solace in befriending a neigh- The genius of the invention, if you ask me, lies in how it forces
bour and going for morning walks with him, you to use a neutral grip where the palms face each other with
attending yoga classes, and cooking whole- weights loaded on exact sides of the body. Both these factors
some meals for himself. allow the athlete to execute moves that simply cannot be done
In her final book, The Joys of Connection, pub- using a conventional Olympic bar. The icing on the cake is that
lished in September this year after her passing, the trap bar is used mostly for that one exercise that can be
Dr Ruth Westheimer, America’s best-known extremely difficult for beginners—the deadlift.
sex therapist, offers readers 100 strategies to If you are a powerlifter, the conventional deadlift is an absolute
cultivate connections that endure, reminding necessity because it is one of the competitive lifts. But if you are
us that human closeness is achievable, even in someone training to maintain your health, get stronger, and gain
our fractured world. Much like Sameer here, Dr organic, it is positioned as a club for like-minded There are those who show up just for the book muscle, the trap bar deadlift is a safer option. That is because
Ruth as she was known by her admirers, pre- people who can meet in a safe environment. club but don’t really interact with the others most regular people, due to a sedentary lifestyles, have mobility
scribes “acknowledging loneliness” as an essen-
tial first step toward easing loneliness’ grip on
“I started Oopar for people like me by provid-
ing space – through tie-ups with restaurants and
How to manage outside of it, some who meet at the book club
and other queer events, and others who are
issues, which are ruthlessly exposed while learning the deadlift.
It’s not just the spine that needs to be
oneself. Taking off from Dr Ruth’s book, Mint
explores some ways you can proactively create
other venue partners – and creating events or
experiences.” The club’s approach is unique,
that feeling close friends who hang out together every-
where. “Whenever queer people come to Ben-
The trap bar’s safeguarded, but also the knees.
Research has proved that the trap bar
hexagonal
connections this holiday season. offering over 20 events every month that fall into
four categories: Travel, Games and Sports, Crea-
of loneliness galuru and wonder how to make friends, I sug-
gest they join support groups and activity
produces “significantly greater peak
design ensures force, peak velocity, and peak power
BUILD NEW BONDS tive Arts, and Movies. With branches now in Medically, loneliness is often defined groups like QRB. They provide individuals with that it’s easy values” than the straight bar. A paper
When Sagar Agarwal, 27, moved to Bengaluru Bengaluru and Hyderabad, the club has grown as a distressing experience that a low-stress way to interact with other people on the spine in the Journal Of Strength And Condi-
in 2022, he had no office to go to. Working from to 5,000 users—a reflection of a growing need arises when a person perceives a gap from the community without having to worry and knees tioning Research titled, A Biomechani-
home meant he had to try doubly hard to make for communities centred on authentic interac- between their desired and actual about what they say or do,” observes Malur. cal Analysis Of Straight And Hexagonal
connections in the city. He went to sports meet- tion. “Rome wasn’t built in a day, and neither are social connections. Barbell Deadlifts Using Submaximal
ups and networking events to no avail. He friendships,” Agarwal notes emphasizing the Quite often, all of us have felt it at EMBRACE THE ‘WEAK TIES’ Loads, adds that the trap bar deadlift “more evenly distributes the
hadn’t made any new friends. time required to build lasting connections. some point in our lives but chronic Dr Ruth also underscores the value of pursuing load between the joints of the body, practitioners may find dead-
“People would Sometimes, one loneliness is like a dead weight which all kinds of platonic connections. Be it work lifts performed with the hexagonal barbell to be an effective alter-
come to networking feels alienated even snuffs out our light within. friends, casual friends/acquaintances, friends native to the squat and an appropriate exercise to use in the final
events with specific The casual connections we amidst familiar faces. It has been shown to impact men- of friends – no matter what bracket they fall stages of low back rehabilitation.”
intents of either dat- have with our work friends or This is what drove tal and physical health significantly, into, each of these friendships is worth nurtur- The reduced spinal loading is what makes the trap bar easier
ing or building a pro-
fessional network,” he the local barista are valuable as queer poet and writer
Rohini Malur to start
contributing to conditions like
depression, anxiety, and even cogni-
ing because they make you feel seen. In a 2014
study, Social Interactions and Well-Being: The
on the spine, but equally, it’s also the physics of the lift that mat-
ters. Loading the weights to the sides without having to worry
reminisces. “We used they make us feel seen Queer Reads Banga- tive decline over time. Surprising Power of Weak Ties, Dr Gillian about the bar tracking up and down the anterior (front) chain is
to exchange Insta- lore (QRB) in 2012. It’s To address loneliness, medical Sandstrom, a senior lecturer in psychology at what makes learning the (trap bar) deadlift easier.
gram handles and that a book club that offers experts often recommend interven- the University of Essex, found that participants “The regular deadlift has a much smaller hip angle (hips are in
was it.” As he soon realized, one can’t make queer individuals an open space to discuss liter- tions such as cognitive-behavioural with larger networks of weak ties tended to be deeper flexion at start) than the trap bar deadlift, which places a
friends after one meeting. Neither can one make ature for and by queer people. Malur admits that therapy (CBT), which can help indi- happier overall. People having even brief greater demand on the hips, hamstrings, erectors, and back.
friends with people who have intents different the loneliness factor is worse or complicated for viduals reframe their social experien- interactions with ‘weak ties,’ such as a barista Additionally, the increased knee flexion at the start of the trap bar
from yours. “All I did was collect phone num- members of the LGBTQIA+ community. ces, along with lifestyle changes like or fellow dog walker, can increase happiness deadlift helps shift demand towards the glutes, quads, and middle
bers knowing that we aren’t going to meet or “Back in 2012, you weren’t really assured of increasing physical activity, engaging and a sense of belonging. to upper back,” states a Barbend.com article comparing the two
talk again.” He realized it needed sustained a warm welcome in mixed/straight spaces. in community activities, or practicing The path to connection, as Dr Ruth’s book deadlifts. Therefore, for those who work in an office, at home, or
efforts to build connections and so, instead of Things are different now but not so much. One mindfulness to build resilience. and the instances cited here illustrate, is one of sit most of the day, with occasional activity, the trap bar deadlift
relying on somebody else, Agarwal decided to of the things I had to learn to do was create the persistent effort. In an age when many feel lon- is the way forward. If one is not into learning deadlifts, there are
start off a club that’s entirely about platonic book club not only as a space to hang out and elier than ever, her words can offer a roadmap: other exercises that the trap bar makes easier such as the farmer’s
friendships and bonding. He named it Oopar talk about books but also as a safe space that’s a “Relationships of all kinds require attention and walk. The bar is designed in such a way that you can walk without
and kicked off operations in late 2022. lot more intentional,” she shares. Today, a care, whether with close friends or the stranger your legs hitting the iron on both ends. So, pick up that trap bar
While its genesis may have been entirely diverse set of people are members of QRB. you greet each morning.” the next time you see it. It won’t be the last time you do so.

Why you need to sort your messed up sleep schedule ISTOCKPHOTO

For a healthy heart, for a week and the team followed up on the more likely to suffer a stroke, heart failure rhythm also weakens the immune system.
subjects for eight years. The study, titled or heart attack than those who maintained “(A disrupted circadian rhythm) makes
having a fixed bed time Sleep Regularity and Major Adverse Car- regular sleep patterns. Moderately irregu- the body more prone to infections, dis-
is more crucial than diovascular Events: A Device-Based Pro- lar sleepers were 8% more likely to do so. rupts appetite-regulating hormones,
spective Study in 72,269 UK Adults, found “Our results suggest that sleep regularity causes day-time sleepiness, reduced alert-
the hours you sleep, that irregular sleep was strongly associ- may be more relevant than sufficient sleep ness, and poor productivity. In the long-
claims a new study ated with higher risk of cardiovascular
diseases including stroke and heart attack.
duration in modulating major adverse
cardiovascular events risk. Indeed, joint
term, it can significantly increase the risk
of chronic illnesses and mortality,” he
“Adequate sleep duration was not suffi- analyses revealed that irregular sleep was elaborates.
Shrenik Avlani cient to offset these adverse effects among associated with significantly higher car- The increased pollution that Indian cit-
feedback@livemint.com irregular sleepers,” the scientists warn in diovascular risk, regardless of whether ies witness during winter complicates this
the report. individuals met sleep duration recom- problem further. Both air and noise pollu-

T
his article does not intend to make Irregular sleep schedules are a by-prod- mendations or not. Our study prompts for tion are known to hamper sleep, and
you lose any sleep. On the contrary, uct of modern life, which is packed with a stronger focus on sleep regularity in therefore, sleep patterns.
it is an earnest attempt to highlight office, family, social and recreational public health guidelines and clinical prac- “Recent studies have shown that higher
the risks of irregular sleep routines and demands and commitments. For instance, tice,” the researchers write. While average yearly levels of nitrogen dioxide
patterns, which have come to light thanks it is the party and wedding season in India acknowledging the limitations of their and PM2.5 (particulate matter less than
to a new study published in the last week at the moment, which means early morn- study, they also noted that adequate sleep 2.5 microns) were associated with
of November. The latest data from the ings and late nights not only for the bride offsets the health risk for moderate irregu- increased odds of moderate to severe
study shows that not only do you need to and groom but also their extended fami- lar sleepers but not for irregular sleepers. sleep apnea independently of race, eth-
get the prescribed seven to nine hours of lies, friends, colleagues and just about Dr Ravi Shekhar Jha, director and head nicity, income, neighbourhood and socio-
shut-eye daily, it also has to be of good everyone involved in arranging the event. of the department of pulmonology at For- economic status,” says Mittal. Jha suggests
quality and —here’s the kicker—it needs “Irregular sleep schedules could tis Escorts Hospital in Faridabad, says that adopting strategies to mitigate pollution-
to follow a regular pattern or schedule to be behaviourally induced as it commonly irregular sleep patterns also impacts related sleep disruption such as using air
ensure you are not at an increased risk of happens with adolescents and young metabolism, mental health, performance, purifiers, keeping windows closed during
an adverse health event. adults due to job profile, shift work (such immune system and can cause hormone high-pollution periods, and keeping
A team of researchers from Canada, as in hotels, airports, sanitation, hospitals, pulmonologist at C.K. Birla Hospital sleepers) and marked the participants imbalances. indoor plants. Avoid outdoor activities
Australia and the United States of America etc) and frequent flying. Diseases arising in Delhi. The reason for these disorders, based on the data collected from the activ- “From elevating insulin resistance, obe- during peak pollution hours. “Install
analysed data of 72,269 people, aged 40 to out of irregular sleep schedules are also Mittal explains, is due to high levels of the ity tracker. Anyone with a score less than sity, and type 2 diabetes to worsening anx- soundproof windows and use white noise
79, who were part of (biomedical database called circadian rhythm disorders. Studies stress hormone cortisol in the body, which 71.6 was an irregular sleeper, moderately iety, depression and impairing memory, machines or earplugs to fend off noise pol-
and research resource) UK Biobank and have shown that circadian rhythm disor- can be aggravated due to deprived sleep. irregular sleepers fell between the scores decision making and cognitive function, lution. As for light pollution, use blackout
had no previous history of major adverse ders are linked to a high risk of cardiovas- Going back to the study, the scientists of 71.6 and 87.3 while those who slept reg- poor sleep patterns can have a serious curtains and dim lighting at night. Also,
cardiovascular events (MACE). The sub- cular diseases, hypertension, heart devised a scale ranging from 0 (very irreg- ularly scored higher than 87.3. They impact on your overall health,” says Jha maintain a consistent sleep routine and
jects wore a wrist-based activity tracker attacks and stroke,” says Dr Vikas Mittal, ular sleepers) to 100 (perfectly regular found that irregular sleepers were 26% who believes that a disrupted circadian limit screen time before bedtime,” he says.