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SUNDAY, 18 FEBRUARY 2018


14 pages in 1 section WORLD P8 WORLD P9

CHINA WARNS IT MAY RETALIATE FACEBOOK, TWITTER ILL-EQUIPPED


MUMBAI
~10.00
VOLUME XI NUMBER 49

IF US IMPOSES METALTARIFFS TO STOP MEDDLING IN US ELECTIONS

INDIA LEASES PART


OF CHABAHAR PORT
Three held for PNB fraud
Courtremandstwobankemployees,NiravModigroupexecutivetoCBIcustodytillMarch3
Fairfax to buy 51%
in Catholic Syrian
SHRIMI CHOUDHARY
Mumbai, 17 February
Bank for ~12 bn
Freshdealaftertalksfellthroughlastyear

T
he Central Bureau of Investigation
(CBI) has arrested a former and a cur- T E NARASIMHAN
rent employee of Punjab National Bank Chennai, 17 February
(PNB) and one executive of the Nirav
India and Iran on Saturday signed nine Modi group of companies in connection with a Canadian investor Prem Watsa’s Fairfax’s Indian arm Fairfax
agreements and committed to the early ~114 billion fraud at the bank. India Holdings will buy a 51 per cent stake in the Kerala-
completion of the Chabahar port. They A special court on Saturday remanded all based Catholic Syrian Bank for around ~12 billion.
decided to find convergence in their views three accused to CBI custody till March 3. The deal, if it materialises, will be the first takeover of
on the issue of terrorism and resolved to On Saturday morning, the CBI detained an Indian bank by a foreign non-banking financial entity
improve trade and energy ties. Apart from PNB’s former deputy manager Gokulnath after the Reserve Bank of India (RBI) tweaked ownership
these official agreements, four others Shetty, the bank’s single window operator norms last May.
were signed between the industry Manoj Kharat, and Hemant Bhat, the autho- The bank’s board on
chambers of the two countries on the rised signatory for jewellery tycoon Nirav Saturday approved
sidelines. The highlight was Tehran Modi’s group companies. Fairfax’s proposal and HOW THE BANK’S
leasing operational control of Shahid
Beheshti port for 18 months to New Delhi.
These are the first arrests in one of the
biggest scams in the coun-
both parties are expected
to sign an agreement
NUMBERS STACK UP
The two countries also signed agreements INSIDE P4 try’s banking history, next week. CatholicSyrianBank’sfinancials(in~bn)
for avoiding double taxation, cooperation allegedly premeditated by Catholic Syrian Bank 6 months 6 months
in health and medicine and agriculture, SHETTY TOOK ONLY Modi and Mehul Choksi Chairman TS Anantha- ended ended
and setting up of a framework for ONE PROMOTION through a clutch of compa- raman confirmed the Sep 2016 Sep 2017
cooperation on the issue of anti-dumping IN HIS CAREER nies they own in collusion development and said
Totalincome 8.35 7.25
and countervailing duties. 12 > GokulnathShetty with some PNB employees. Fairfax India Holdings
retiredinMay2017, According to the CBI’s From left: Hemant Bhat, the authorised signatory for Nirav Modi’s group companies, PNB single Corporation had formally GrossNPA 4.62 6.23
afterabout36years remand application, the window operator Manoj Kharat and former PNB deputy manager Gokulnath Shetty being indicated its continued NetNPA 3.3 4.27
Siddharth Mehta is new ofservice.Hetook amount involved in fraud- produced at the CBI special court in Mumbai on Saturday PHOTO: KAMLESH PEDNEKAR. interest in buying 51 per
GrossNPA(%) 5.7 6.75
onlyonepromotion ulent letters of undertak- cent of the share capital of
Religare interim CEO inhiscareer,but ings (LoUs) issued is like- the bank at a mutually NetNPA(in%) 4.14 4.73
Religare Enterprises on Saturday inducted
three new board members. The
stayedintheFort,
Mumbai,branchof
ly to be in the vicinity of
~60 billion, which is many Bankers in huddle Banks may agreed price of ~140 per CapitalAdequacy
share. Ratio(Basel-III)(%) 10.69 11.09
announcement came close on the heels of
the resignation of promoters Malvinder
PNBforsevenyears
tillhisretirement.
times more than the
~2.8 billion in the bank’s to reconcile claims take ~176 bn “The investment is sub-
ject to customary closing Netprofit/(loss) 0.53 -0.13

hit: I-T dept


Mohan Singh and Shivinder Mohan Singh IND-RAHAD first complaint. conditions, such as com- Source: Catholic Syrian Bank
earlier this week. The three new members A-OUTLOOKFOR The CBI remand plea ABHIJIT LELE pletion of required legal
are Vikram Talwar; former Reserve Bank of NIRAVMODIFIRM said the accused were not Mumbai, 17 February documentation and
India executive director P Vijaya Bhaskar
and Bay Capital Partners founder Siddharth
Mehta. Mehta was been appointed the
RAHULASKS
PM,JAITLEY
cooperating with the inves-
tigation so their custody
was required “to recover B ankers on Saturday went into a huddle to reconcile
claims after the Letters of Undertaking (LoUs) scam hit
B anks could
take a hit of at
least ~176 billion
receipt of all applicable board, shareholder and regulatory
approvals,includingtheapprovaloftheReserveBankofIndiaand
the Competition Commission of India,” he said.
TOSPEAKUP
interim CEO, while Vijaya Bhaskar will chair important missing docu- Punjab National Bank (PNB). from loans and Fairfax had said last year it was ready to invest up to
the Audit Committee. ments related to the issue PNB has put the value of outstanding claims in the corporate ~10 billion in Catholic Syrian Bank for a 51 per cent stake, but
of fraudulent LoUs”. fraud involving billionaire jeweller Nirav Modi at over guarantees the deal did not materialise due to differences over valuation.
The CBI also sought custody to understand ~110 billion ($1.77 billion). provided to Punjab National Catholic Syrian Bank thereafter started looking at a new
BACK PAGE P12 the modus operandi and to locate relevant doc- Bankers declined to speak about either the outcome or Bank in a ~114 billion fraud case, set of investors and met dozens of them. Finally, Fairfax
India slides 16 places in uments to identify a larger conspiracy and ascer-
tain the magnitude of the scam.
their future course of action after a two hour-long meeting
held at State Bank of India’s head office in Nariman Point, a
the income tax department said
on Saturday.
has come back on board.
The Reserve Bank of India had last year issued its approval
globalisation index The CBI will probe the role of other co- business district in South Mumbai. Executives of the As of March 2017, banks had to Fairfax’s proposal. Now both parties must approach the
As flows of trade and people fell the world accused and the end-use of the huge amount of Delhi-based PNB joined the meeting through video- extended loans and guarantees banking regulator for a renewal of the earlier approval. This
over since the 2008 global financial crash, public funds diverted by them in conspiracy conferencing. worth ~176.32 billion to is easier for Catholic Syrian Bank than bringing in new
India dropped 16 spots to 78 from 62 among with other accused who were on the run and The venue for the meeting was shifted at the last minute companies tied to billionaire investors and going back to the RBI for a fresh approval.
140 countries in 11 years to 2015 on a some of them were yet to be identified. from the headquarters of the India Banks’ Association jeweller Nirav Modi and his The bank is expecting to close the deal by March subject
globalisation index brought out by Business Standard has reviewed a copy (IBA) in Cuffe Parade to avoid the media glare. uncle Mehul Choksi, the tax to regulatory clearances.
international logistics company DHL. of the CBI’s remand application submitted to ThosewhoattendedthemeetingincludedUsha department said in a note seen CVR Rajendran, managing director and chief executive
Measured by international flows of trade, the court. Ananthasubramanian,managingdirectorandchief by Reuters. officer, Catholic Syrian Bank, said the fresh capital would
capital, information and people, the index During the hearing, the court observed that executiveofAllahabadBankandchairmanoftheIBA, But the total hit to Indian help the bank to double its balance sheet from ~250 billion.
ranked India poorly among a group of the offence was serious and could run into DMahapatra,managingdirectorandchiefexecutiveofBank banks “may well exceed” that “Catholic Syrian Bank has taken various initiatives in the
comparable countries that included its ~60 billion and that the CBI should get a fair ofIndia,NSKannan,executivedirectorofICICIBank,and amount the department said in last few years to reinvent itself in a highly competitive bank-
neighbours in central and south Asia, and chance to investigate the case. Turn to Page 4 > BRajkumar,deputychiefexecutiveoftheIBA. Turn to Page 4 > its note. REUTERS ing industry and the proposed Fairfax India investment will
BRICS members. boost these efforts in a substantial manner,” he said.
Catholic Syrian Bank reported a profit of ~15.5 million in
2016-17 against loss of ~14.9 million a year ago.
COMPANIES P2 “We will be a high quality SME bank and will focus on five
Wallet firms urge RBI to A CANADIAN NAMASTE to six states even after having a pan-India presence,”
Anantharaman had said earlier.
reconsider KYC rule Canadian Prime Minister Justin
Trudeau and his family arrived at
As the Reserve Bank of India’s March
the Palam Air Force Station in New
deadline for meeting know-your-

JOB CREATION SLOWS TO


Delhi on Saturday. State and
customer (KYC) requirements nears,
business delegates from both
representatives of the prepaid payments
countries will be looking at
industry have requested the central bank
to waive the requirements for transactions
below ~10,000. The Payments Council of
week-long discussions on trade and
bilateral relations. Of the imports
worth $4.1 billion from Canada in
64,000 IN APRIL-JUNE
India has been vocal about how the full
2016-17, pulses amounted to $1.1
The pace of job
KYC requirements would hamper the
billion, making pulses the central
creation in the
wallet industry.
point of the forthcoming trade
organised sector fell
discussions. They will also be
sharply during
looking at realising broader aims of
April-June 2017 to a
COMPANIES P3 three-quarter low due
trade expansion and investment
Rating agencies upgrade promotion. Currently, both
to significant job losses
in manufacturing, latest
wind, solar outlook countries are engaged in
negotiations of the proposed
official estimates show.
The renewable energy sector in India has
Foreign Investment Promotion and
The number of new jobs
got a shot in the arm as rating agencies
Protection Agreement and the
created declined by
have upgraded their outlook from negative
Comprehensive Economic
around 65 per cent to 64,000 in April-June 2017 from 185,000 in
to stable. The development comes on the
Partnership Agreement PHOTO: PTI
January March 2017, according to the Labour Bureau’s quarterly
back of a favourable environment for wind report on employment. Job creation during April-June was
and solar energy sectors as bids are being even lower than the 77,000 reported in the same three months
> RELATED REPORTS ON PAGE 5
driven by central government agencies. a year ago. SOMESH JHA writes 5>

Bangladesh border post third-biggest entry point for foreign tourists


ISHITA AYAN DUTT & NAMRATA ACHARYA
Haridaspur, 17 February SURGE IN TRAFFIC it. Agents on the other side of the border have
tie-ups with hospitals in Kolkata and
seasons. “During the rains, people wade
through the water to gain entry through the tin
Incoming tourists Outgoing tourists ambulances are sent to pick up patients, if shed,” the immigration officials said.
It is afternoon, well beyond the peak time for required. Some arrive for regular medical It is tough on the officials as well. Though
tourist arrivals from Bangladesh. Still a 2,029,947 check-ups, while a percentage proceeds to the summers are around the corner, the
1,910,316
snaking queue makes its way to the arrival zone Vellore and Bengaluru for building does not house a single
— not a swanky lounge but a tin shed. The 1,589,246 specialised treatment. air conditioner. The plan for a
991,084

queue breaks up and the tourists jostle to cram 1,330,908 According to immigration In 2017-18, up to state-of-the-art passenger
923,452

1,258,684
inside the shed. There are seven counters each officials, 600-700 day traders December, total terminal, likely to cost ~50 billion,
790,533

684,270 646,638

for arrival and departure that handle 8,000 from Bangladesh make their way crossings at has been sent for approval.
639,865 618,819

passengers a day. Welcome to the Haridaspur to Kolkata daily. They arrive at Haridaspur stood at Make your way across the
Land Check Post that has been clocking in the dawn and return in the evening. 2 million, compared border and you are presented with
1,038,863
986,864

third-highest percentage of foreign tourist Suppliers to small shops, these to 1.3 million in a contrasting picture. The
798,713

arrivals over the last two years. traders usually carry wares 2016-17. According passenger terminal in Bangladesh
In January, the percentage share of foreign ranging from shampoos to sarees to immigration is a smart steel-and-glass
tourist arrivals was highest at Delhi airport at The Indian side of the Petrapole-Benapole border checkpoint ‘14-15 ‘15-16 ‘16-17 ‘16-17* ‘17-18** to biscuits to crockeries. And this officials, it is structure with adequate
28.03 per cent, followed by Mumbai airport at between India and Bangladesh PHOTO: SUBRATA MAJUMDER * upto Dec ‘16 **upto Dec ‘17 crop of traders is growing in projected to manpower and a smooth flux of
17.47 per cent and the Haridaspur Land Check number. increase to 4 million passengers. It even houses a duty-
Post at 7.63 per cent. The numbers reflect a “The building, the free shop.
trend that emerged in 2016. Close to the Bangladesh border, it is no governments. Visa norms have been infrastructure might have been The contrast is most glaring at
In 2017-18, up to December, total crossings surprise that the neighbouring nation simplified, which is why Haridaspur has good enough to handle the traffic about 20-30 the Petrapole-Benapole border post. At 4:30
at Haridaspur stood at 2 million, compared to accounted for the highest percentage of moved up the ladder in terms of the number of years ago, but now it is creaking under the pm every day, the Wagah of the East ceremony
1.3 million in 2016-17. The number stood at foreign tourists in India during the period at crossings in the last two years. pressure,” say officials who work 361 days a is held between India’s Border Security Force
663,272 seven years ago. According to 16.36 per cent. Medical tourism accounts for about 70-80 year. About 60 officials handle the inflow and and Bangladesh’s Border Guards. The gallery
immigration officials, the number is projected The surge in traffic is a result of the friendly per cent of the foreign tourist arrivals from outflow of passengers at Haridaspur. on the Bangladesh side completely outclasses
to increase to 4 million. ties between the Indian and Bangladesh Bangladesh. A well-oiled machinery is behind The tin shed is the arrival zone in all the one on the Indian side.

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MUMBAI | 18 FEBRUARY 2018 1

Air Deccan, Air Odisha in Wallet firms urge RBI to


reconsider KYC requirement
Sebi to
probe
pact with GSEC, Monarch NIKHAT HETAVKAR
Mumbai, 17 February
Fortis
deals
VINAY UMARJI As the Reserve Bank of India’s
Ahmedabad, 17 February (RBI’s) March deadline for PRESS TRUST OF INDIA
meeting know-your-consumer New Delhi, 17 February
(KYC) requirements nears, rep-

A
ir service operators Air
Deccan and Air Odisha resentatives of the prepaid pay- Markets regulator Sebi has
have joined hands with ments industry have request- initiated investigation in the
Gujarat-based cargo operator ed the regulator to waive off full Fortis Healthcare matter. The
and investors Gujarat State KYC requirements for transac- hospital chain has landed in a
Export Corporation (GSEC) tions below ~10,000. controversy over alleged reg-
Limited and Monarch Group The Payments Council of ulatory lapses in transfer of
to offer low-cost flights as part India (PCI), the representative funds to some promoter-
of the Ude Desh Ka Aam body for digital payment play- linked firms. Sebi has asked
Nagrik (UDAN) scheme. ers along with other industry the company to furnish the
Dismissing speculations of stakeholders have been vocal required information by
a buyout, Capt G R Gopinath about how the full KYC require- February 26. The company
of Air Deccan said, “This is a ments would severely hamper Oxigen. Payment players cite through the Pradhan Mantri has received a communica-
partnership between Air the wallet industry. the cost of full KYC as a hurdle Jan Dhan Yojana, which are tion from the Securities and
Odisha, Air Deccan, GSEC and The prepaid payment for their growth. “OTP-based now basic savings accounts. Exchange Board of India
Monarch. We cannot disclose instruments (PPI) committee Aadhaar verification has often People can transact up to (Sebi) dated February 16, con-
the investment or the share- of PCI told Business Standard turned out to be ineffective ~10,000 per month and KYC is firming that an investigation
holding structure because it is that it had communicated the since people often change their not required for 24 months has been instituted in the
still being worked out. Each issues of the industry regard- numbers even after linking it after opening the account. Also, matter of Fortis Healthcare,
of us has our own strengths. Gujarat Chief Minister Vijay Rupani inaugurates Air Odisha’s first flight under UDAN scheme ing making full KYC mandato- with Aadhaar. Wallet compa- these account users can acquire according to a regulatory fil-
For example, Air Odisha has a YASIN D ry and given a presentation to nies would need to do biomet- a debit card which can be used ing by the company to stock
huge network to leverage, RBI in December 2017. ric verifications, which would to make payments,” said the exchanges on Saturday. Sebi
meanwhile, GSEC and company to achieve scale and Monarch has been in the busi- Odisha are looking to deploy With only a month left for not be feasible for us,” said committee, adding that mini- has asked to furnish informa-
Monarch are strong investors. optimally use resources avail- ness of financial and capital 13 aircraft between them link- the March 31, 2018 deadline, Kulkarni. mum KYC has similar limita- tion and documents as men-
And Air Deccan’s prior expe- able to it. We realised that each market advisory services. The ing 60 airports across the coun- PCI has received no intimation “It would cost around ~75- tions and should be acceptable tioned therein by February
rience in this space will serve of the JV company independ- other stakeholder GSEC Ltd is try. While Air Deccan recently from the central bank but 100 per person, apart from for customers with low-value 26, 2018, it said.
the JV well. All the players ently was too small to drive into air cargo services. The launched services in Maharas- remains hopeful that “the reg- hardware which would cost transactions. “Full KYC chal- “The company is in
have come together for this JV efficiencies from operations business is run by Adani htra, Air Odisha announced its ulator would respond around ~3,000 per outlet. lenges the viability of wallets,” process of collating the said
with an aim to grow and maintenance. We also Group Chairman Gautam maiden flight between favourably to our concerns.” Imagine that cost for 400 mil- said Jagannathan highlighting information and will be shar-
infrastructure to help link need investments to grow and Adani’s brother-in-law Rakesh Ahmedabad and Mundra in All transactions, regardless lion wallets,” said a committee that transactions below ~25,000 ing the same with Sebi in due
metros to rural towns under hence it makes sense for us to Ramanlal Shah who is married Gujarat under UDAN. of amount and every new wal- member. He added that wallets can be done through a banking course. The financial impli-
UDAN scheme.” come together. With 62 new to Gautam Adani’s sister Prity. Under the UDAN scheme, let customer would require full don’t operate at the same prof- correspondent without full cation, compensation, penal-
Gopinath says that the JV airports being planned — one In the final stages of being Air Odisha has bagged 50 KYC after March 2018. it margins that telecom com- KYC. The committee also ty and quantum of claims has
will help all the stakeholders needs huge engineering, infra- structured, the JV will see routes where it plans to intro- Committee members said that panies do and these costs stressed on how PPI instru- not been referred in the afore-
optimise their resources. Air structure and manpower cross purchase of stakes by the duce flights from Ahmedabad transactions below ~10,000 would kill their growth. ments have led cash-intensive said letter and hence cannot
Odisha and Air Deccan have resources,” said Gopinath. players. “The letter of Intents to Bhavanagar, Jamnagar, Diu form 90 per cent of total trans- “It is not just about the cost. markets such as remittance be ascertained,” it said. Fortis
bagged 50 and 34 routes, Apart from the three com- (LoIs) has been signed. We will and Mundra in the first phase. actions. They stressed that full Half of the wallet users do not and payments towards digital Healthcare was issued notices
respectively, out of the total 124 panies, there other players have some arrangements for Air Deccan, on the other hand, KYC for these low value trans- come back when asked to do and how the fall of wallets by the stock exchanges yes-
routes on offer under UDAN by who are part of the JV but managing the operations,” has bagged 34 routes, said acting users would deter them full KYC. It’s a matter of chang- could lead to greater cash trans- terday following a media
the Government of India. Gopinath did not disclose the Gopinath said. Gopinath. The players will be from wallets. ing people’s habit from cash to actions. “Cash has no KYC. report claiming that the com-
“With limited number of names of these players. Over the next four to five looking at an aircraft utilisa- “We want proportionate digital, which happens over a Cash, especially fake notes, pany’s promoters, the Singh
aircraft, it’s not possible for a One of the JV partners months, Air Deccan and Air tion of 10 hours. KYC, where the KYC require- period of time. The (PPI) indus- would be more problematic bothers, took at least $78 mil-
ments should depend on the try needs stability from the reg- than these transactions,” said lion (about ~500 crore at cur-
risk and benefit of the transac- ulator,” said Sriraman Kulkarni. rent exchange rate) out of the
With the JV in place, Air tion,” said the committee. Jagannathan, head, PPI com- The committee, however, publicly-traded hospital
Odisha will now connect towns “In minimum KYC, we have mittee, PCI and vice-president, agrees that full KYC was nec- company they control with-
like Bhubaneshwar, Utkela, the customer's name and Amazon India. He also said essary for high value transac- out board approval about a
Raipur, Ranchi, Gwalior, phone number. Since all that customers have other tions as well as interoperabil- year ago. Replying to the
Lucknow, Kanpur, Varanasi, mobile numbers will be linked options available to them to do ity. “Full KYC makes sense in notices, Fortis Healthcare
Ahmedabad, Surat, Bhavnagar, to an Aadhaar number by low-value transactions, if wal- the case of interoperability as said its wholly-owned arm
Salem, Pondichery, Neyveli, March 31, a verified phone lets start mandating full KYC it gives the user an additional Fortis Hospitals had deployed
Kadapa, Jharsuguda, Jagdalpur, number should be enough,” and would switch to those. benefit and convenience and funds to the tune of ~4.73 bil-
Vishakhapatnam, and Raigarh, said Sunil Kulkarni, co-chair- “We have past precedent. fulfils the risk based frame- lion as secured short-term
among others. man, PPI Committee, PCI and Three hundred million Jan work required between two investments to group firms of
joint managing director, Dhan accounts were opened separate parties,” it added. its promoters.

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Rating agencies upgrade wind, solar outlook


T E NARASIMHAN
Chennai, 17 February
growth momentum in renew-
able power, the agency said.
RENEWABLE SURGE ational troubles from wind tur-
bine manufacturers that need
energy sources, the viability of
such tariffs remains a chal-
The industry is also optim- Growth of renewable Renewable energy all-India capacity as on to be addressed by developers. lenge. “This would depend on
The renewable energy sector in istic about opportunities in the energy installed capacity December 31, 2017 (utilities) The rating agency said that the availability of long-tenure
India has got a shot in the arm near future, although cautious avoidance of downtime of solar debt at cost competitive rates,
as rating agencies have upgrad- on the inherent challenges in India (every 5 years) Source Capacity (Megawatts) and wind plants are critical in capital cost, PLF level and abil-
ed their outlook from negative which could pull things down Wind 32,848.5 ensuring the predicted internal ity of the developer to identity
to stable. The development if not addressed properly. An rate of returns. Uncertainties in locations with high-generation
Solar 17,052.4
comes on the back of a favou- industry expert said 2017 was a plant load factor is significantly potential,” said Girishkumar
rable environment for wind and watershed year for renewable Biomass power/cogeneration 8,413.8 higher in wind projects than Kadam, sector head and vice-
solar energy sectors as bids are energy in India with significant Small hydropower 4,418.2 solar projects owing to estima- president, Icra Ratings.
being driven by central govern- policy reforms such as com- tion errors during initial wind There are also concerns
ment agencies and developers petitive bidding in wind,
Waste to energy 114.1 resource assessment, high related to the attempt of the
are warming to power purchase record low wind and solar tar- Total RES capacity 62,846.9 dependence on single turbine distribution utilities in some
agreements (PPAs) in terms of iffs and the goods and services All India installed capacity supplier for operations and states looking at renegotiating
addressing grid curtailment and roll-out. In addition to this, (Including thermal, nuclear, hydro and RES)
334,399.8 maintenance, and high suscep- or cancelling the signed purc-
termination issues. technological advancement Source: Institute for Energy Economics and tibility to grid curtailment. hase agreements following the
Financial Analysis Source: Central Electricity Authority
India Ratings and Research and increased competition are The tariff discovered in the significant decline in wind
(Ind-Ra) has maintained a stab- steering new possibilities for sites viable, ensuring better in 2017, it has laid the founda- tive markets. This will pave the and provides a visibility to sup- reverse auction under the sec- energy tariffs discovered
le outlook on the solar sector clean energy in 2018. yield and increasing turbine tion for sustainable and inclu- way to unlock 300 Gw wind port capacity additions over the ond MNRE scheme conduct- through the competitive bid-
and revised the outlook on the Tulsi Tanti, chairman and utilisation will be the key focus sive sector growth. The wind energy potential in India and next four-year period, provided ed by the Solar Energy Corpo- ding route, although the Centre
wind sector to stable from neg- managing director, Suzlon areas. The industry will collab- industry is poised to grow to harness the latent potential of the same is implemented in a ration of India in October 2017 has advised the states against
ative for FY19. The development Energy, said that in India, orate further to improve the about 8 to 10 Gw (gigawatt) non-windy states,” he said. timely manner. declined by 24 per cent to ~2.64 any such move.
of guarantee funds by states- investors are bullish and excited supply chain, enable grid inte- annually, with 5 to 6 Gw annual Another rating agency, Icra, However, the industry has per unit as against ~3.46 per Creating a favourable
/bidders, incentives to local sol- to be part of the renewable gration and leverage digital bidding from the central gov- has also said that the wind said that there are a few hurdles unit discovered in the first ecosystem and better ratings
ar panels manufacturers and growth story. Digitalisation of technologies. ernment level, 3 to 4 Gw capac- capacity bidding programme including uncertainties in solar MNRE scheme. While this sig- may have its importance in the
exploration of wind-solar hyb- services, innovation in tower “While the wind industry’s ity auctions from the nine announced by the Ministry of panel costs, unpredictable nificantly improves the tariff Centre’s move towards achiev-
rid projects and offshore wind and blade technologies aimed transition to the bidding regime windy states and 1 Gw capacity New and Renewable Energy behaviour of distribution com- competitiveness of wind ener- ing the targeted 175 Gw clean
projects indicate a sustaining towards making unviable wind created short-term challenges expected from the PSU and cap- (MNRE), is quite significant panies (discoms) and oper- gy as against the conventional energy by 2022, said experts.

Odisha govt mulls UK Indian tycoon reignites IndoSpace to launch $500-mn fund
T E NARASIMHAN cent of the total

~270-bn notice on Chennai, 17 February commitments) in the fund.

mothballed Tata furnace


IFC’s Asset Management
Everstone-owned IndoSpace Company is also considering a
is raising around $500 million parallel investment, said IFC.
non-ferrous mines PRESS TRUST OF INDIA
London, 17 February
for its third fund, which will
invest in companies that are
primarily into developing
“IFC is uniquely positioned to
provide as well as mobilise
capital for IndoSpace’s largest
JAYAJIT DASH miners. The apex court judg- industrial and warehousing property fund so far,” said
Bhubaneswar, 17 February ment, however, was limited to British-Indian steel tycoon San- parks in India. The the World Bank’s investment
iron ore and manganese jeev Gupta has invited Prince International Finance arm. Earlier this year,
Enthused by the collection of mines. An industry source said Charles to reignite a furnace in Corporation is planning to IndoSpace and Canada
around ~120 billion as com- that the Odisha government’s northern England which had make an equity investment Pension Plan Investment
pensation from iron ore and step to recover cost of excess been mothballed by Tata Steel, in the proposed new fund. Board (CPPIB) formed a JV,
manganese miners, the Odisha production from the non-fer- its previous owners. IndoSpace is a JV between PE IndoSpace Core, to focus on
government is preparing to rous leases might not be legal- The N-Furnace at Liberty firm Everstone Group and acquiring and developing
despatch similar demand ly tenable as there was no spe- Speciality Steels in Rotherham, Realterm, a US-based global modern logistics facilities in
notices to non-ferrous mine cific order from the Supreme South Yorkshire, is an electric industrial real estate leader. India. CPPIB also made a
lease owners to extract cost of Court for minerals other than arc furnace, part of a multi-mil- IFC has proposed an equity significant commitment of
excess production. iron ore and manganese. lion pound investment by Gup- investment of up to $25 over $1 billion toward
Demand notices seeking to The notional value of over- ta’s Liberty House Group. It is million (not to exceed 20 per IndoSpace’s assets.
recover ~270 billion would be production by coal mines in the larger of the Rotherham
slapped on coal, chromite, bau- Odisha has been assessed at plant’s two electric arc furnaces
xite, limestone and other min- ~220 billion. For chromite and mothballed by Tata Steel in 2015
ers. The action follows showc- other non-ferrous leases, the at the height of the steel crisis.
ause notices sent to the miners. compensation figure works out “Switching this furnace
“The demand to be about ~50 bil- back on, after it had lain idle for
notices would be An industry source lion, meaning a more than two years, is a pivotal
sent to the non- said the state’s step total penalty of moment in the revival of UK The N-Furnace at Liberty Speciality Steels in Rotherham, South Yorkshire, is part of a
ferrous lessees in to recover the cost of ~270 billion. In steelmaking and we are very multi-million pound investment by Sanjeev Gupta’s Liberty House Group
staggered form in excess production case of coal, Coal pleased His Royal Highness is
respect of violat- from the non- India subsidiary able to share this hugely sym- and more competitive era for jobs are being created in the target of installing 5 million
ions of environ- ferrous leases Mahanadi Coal- bolic milestone with us,” Gupta the industry in the UK. wider GFG group, which des- tonnes of GreenSteel produ-
ment clearance, might not be fields Ltd (MCL) is said. “The occasion makes a It was acquired last year by cribes itself as Britain’s fastest- ction capacity within five years.
forest clearance legally tenable the major contrib- very powerful statement that Liberty, which as part of a wider growing industrial employer In addition, restarting N-
and other statuto- utor to over-pro- steel does have a future in GFG Alliance is creating 300 with 5,500 staff UK-wide. Furnace will enable the
ry non-compliance. We have duction. The showcause notice Britain and that is very good jobs at Rotherham and its sister The switch-on is the culmi- Rotherham plant to double pro-
already conducted hearing sent earlier to MCL by the gov- news for the whole of our man- plant in Stocksbridge, as well nation of five months’ enginee- duction on its adjacent bar mill
with the leaseholders after ernment sought to realise ufacturing and engineering hundreds more across the UK ring work by a team of 35 people to over 400,000 tonnes a year.
sending initial showcause not- ~201.69 billion. sector,” he added. after a series of acquisitions in to repair and upgrade equip- During his visit to the 2,000-
ices. The government believes MCL sources had previous- The 800,000-tonne-a-year the sector. When Gupta bought ment. It will triple Liberty’s cap- worker business, Prince Charles
there can be no discrimination ly confided to Business furnace, which turns scrap met- the business in May 2017, he acity to melt scrap into liquid was briefed by Gupta, the exec-
on the basis of minerals,” said Standard that the company al into specialised steel for uses had pledged to restart the fur- steel at Rotherham, making the utive chairman of GFG Allian-
a government official. The gov- would decide on legal options such as vehicle gearboxes and nace as part of an initial 20-mil- company the largest steel recy- ce, on progress towards his gro-
ernment has decided to send if served with a demand notice. aircraft landing gear, will now lion-pound investment plan to cler in the UK, with a capability up’s vision for an industrial
the demand notices after due GMR Energy also figures on play a pivotal role in Liberty’s expand the Speciality operation to melt over 1.2 million tonnes a revival based on renewable en-
legal consultation, he added. the list for extracting coal bey- overall GreenSteel strategy, and create another 300 jobs. year. The firm said it would also ergy, metal recycling and inte-
The state government’s ond the approved limits. Amo- designed to usher in a cleaner Since then, hundreds more move the business closer to its gration of the supply chain.
move to extract compensation ng chromite miners, Tata Steel
for illegal production is on the and Indian Metals & Ferro All-
premise of the Supreme Court oys Ltd figure on the state gov-
order (of August 2, 2017) in the ernment’s list of errant min-
case of illegal mining in Odisha ers. Earlier, 131 iron and
filed by the NGO, Common manganese lease holders were
Cause. The top court had asked slapped with demand notices
for recovery of 100 per cent totalling ~175.76 billion for env-
compensation from the erring ironment clearance violations.

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MUMBAI | 18 FEBRUARY 2018 1

Gokulnath took
promotion only
Ind-Ra had A- outlook for Nirav firm
Banks relied on this rating to lend to company RATINGS ROAD
once in 36 years
In February 2016, another rating
DEV CHATTERJEE CARE then downgraded the compa- agency CARE Ratings had red-flagged
Mumbai, 17 February ny’s debt instruments worth ~24.6 FIPL’s declining financial health and
ILLUSTRATION: BINAY SINHA
billion. downgraded its debt instruments
ADVAIT RAO PALEPU &

F
itch-owned India Ratings (Ind- The rating agency also warned worth ~24.6 billion
NIKHAT HETAVKAR Ra) gave an Ind A- outlook to about Firestar Diamonds, a sub-
Mumbai, 17 February Nirav Modi’s flagship compa- sidiary of FIPL based in Hong Kong,
ny, Firestar International Private saying the company may not be able Agency Ratings Date
Gokulnath Shetty, the main Limited (FIPL), even though the firm to repay its loans unless its parent BBB
accused in the ~114-billion was suffering from a high-leverage, company steps in as a guarantor. CARE Feb ‘16
minus
Punjab National Bank fraud off-balance-sheet exposure. Indian But, on June 7, 2016, CARE said it
case, retired in May 2017, after banks, including Punjab National had withdrawn the ratings assigned India Ind A- Mar ‘17
about 36 years of service. Bank (PNB), relied on this rating to “with immediate effect” to the bank Ratings A Nirav Modi jewellery boutique in Mumbai PHOTO: KAMLESH PEDNEKAR
He took only one promo- lend huge sums to the company. facilities of FIPL, following the
tion in his career, but stayed in Ind-Ra’s officials said they were receipt of a “no-objection certificate”
the Fort, Mumbai, branch for in discussions with the company till from the lenders. This was mainly tisation) margin of 5.8 per cent in three times,” Ind-Ra said in March cost manufacturing in India, access
seven years till his retirement. December 2017, for they needed more because FIPL decided to rely on Ind- 2015-16 compared to the 5.7 per cent 2017. It also said FIPL enjoyed opera- to global participants and consumers
The last letter of undertaking information, and placed FIPL and Ra’s better ratings. in 2014-15. Ind-Ra said in the first tional synergies between its B2B in Hong Kong and the UAE markets,
(LoU) he helped pass for Nirav other group companies on rating While CARE raised the red flag in half of 2016-17, the company report- businesses — cut and polished dia- and quality diamond procurement
Modi was in March of that year. watch with negative implications on February 2016, Ind-Ra in March 2017 ed a consolidated revenue of ~68.95 mond trading, jewellery manufac- from Belgium. A majority of the com-
A native Kannada speaker, Thursday, a day after PNB informed said it had rated the company’s debt billion and lower profitability margin turing, and retail — which provide pany’s sales and procurements are
Shetty grew up in Mangalore, A NATIVE KANNADA the stock exchanges about its loss. instruments at “IND A-” with a stable of 4.4 per cent. Consequently, gross ease of sourcing, distribution and global. Hence, unhedged receivables
but came to Mumbai for stud- SPEAKER, SHETTY GREW An Ind-Ra official said, as a policy, outlook. This put FIPL’s financial per- interest coverage was low at 2.8 economies of scale. comfortably cover its payable posi-
ies. His Facebook photo is that UP IN MANGALORE, BUT the company did not comment on formance in line with Ind-Ra’s expec- times. “Ind-Ra expects the compa- “Moreover, the company’s opera- tion, thus, maintaining a natural
of his younger self, but the per- issuer-specific ratings. In February tation, indicated by a stable consoli- ny’s consolidated financial profile to tions are strategically located to facil- hedge on a stand-alone level,” it said.
son arrested on Saturday was CAME TO MUMBAI FOR 2016, CARE Ratings had red-flagged dated Ebitda (earnings before remain moderate over FY17-FY18, itate higher profitability in tax-free This rating was not revised until the
grey-haired. He has a squint in STUDIES. HIS FACEBOOK FIPL’s deteriorating financial health. interest, tax, depreciation, and amor- with fixed charge coverage of around regions of the UAE, along with low- scam hit the headlines.
his left eye.
He was not transferred, as
PHOTO IS THAT OF HIS
getting a treasury or foreign YOUNGER SELF, BUT THE
exchange specialist in PSU
banks is a tall task. Among the
groups he is part of in Facebook
is “Bankers Disciplinary Action
PERSON ARRESTED ON
SATURDAY WAS
GREY-HAIRED
PSBs need to be
Cases”.
The social media profile
also suggested that Shetty had
privatised and
a taste for prestigious real estate
projects as an investor. While
he lived at the fairly up market
Rustomjee Ozone complex in
Within the branch, it
seemed like business as usual,
as there was barely any hustle
and bustle. It was the third
regulated: CEA
west Mumbai’s Malad, he had Saturday of the month and the T E NARASIMHAN & GIREESH BABU
investments in at least one flat branch remained open, Chennai, 17 February
at Palava, Dombivli, near Navi notwithstanding a small polit-
Mumbai. ical protest outside the branch. Chief Economic Advisor (CEA)
Shetty’s co-accused is The branch is fairly small, Arvind Subramanian on
Manoj Kharat, a clerk working with the general manager’s Saturday said more public sec-
at the branch. Unlike Shetty, cabin directly opposite the tor banks (PSBs) should be pri-
Kharat was a newcomer, having front entrance. This begs the vatised and the sector needed
joined the bank only in 2014. question as to how a fraud of better regulations.
These two were accused of this magnitude could take Addressing the Madras
tampering with the core bank- place in such close quarters. Management Association’s
ing system of the PNB to raise Despite repeated efforts, the annual convention, the CEA,
fraudulent guarantees for com- general manager of the branch referring to the fraudulent
panies owned by Nirav Modi refused to comment on either transactions scandals rocking
and Mehul Choksi. At the the LoU fraud or on the work Punjab National Bank PNB, The CEA said progress had
branch, his old colleagues were environment. State Bank of India and Bank of also been made for the
not in a mood to talk about But with the rising arrests Baroda, said both the internal resolution of the bad debt
Shetty at all. The branch sits in the frauds, it is evident that a control of the banks as well as crisis and recapitalisation
alongside other bank branches whole lot of people were external controls exerted by of banks
of State Bank of India and Dena involved, and Shetty could be a regulators seemed to have bro-
Bank in the vicinity. small cog in a giant wheel. ken down. ulation. He said over the past
In the current context the two-three years, the govern-
question was “while the inter- ment had taken steps to recog-
nal controls have broken down nise the extent of bad assets in

Whistleblower deleted NCP activists protest against Nirav Modi and the Punjab National Bank fraud case in Thane, Mumbai, on Saturday. The protesters,
led by Mumbai NCP Vice-President Ashok Dhatrak, wanted an assurance from bank officials that the money of depositors was
safe. The party's Maharashtra spokesperson Clyde Crasto said its functionaries were not allowed to meet bank officials PHOTO: PTI
in the system, for whatever rea-
son, what about the external
controls exercised by the regu-
the banking system. “The bad
assets in the system will be 20-
30 per cent more than what was

LinkedIn profile https://telegram.me/AllEpapers


lator and the supervisor? And
that is an important question
we need to ask, when we think
recognised at any given point in
time,” he said. The CEA said
progress had also been made
SAMREEN AHMAD
Bengaluru, 17 February
Congs wants answers, Crisil places
about the regulation,” he said.
To avoid such scandals in
the future more private partic-
for the resolution of the bad
debt crisis and recapitalisation
of banks. But, while recapitalis-
As soon as the media tracked
PNB debt ipation should be allowed in ing banks one need to ensure
down Hari Prasad S V (pic-
tured), the whistleblower in
the Nirav Modi scam, the
Bengaluru-based entrepre-
BJP targets Singhvi under watch
public sector banks and there
should be more scrutiny on the
banking system, he added.
Subramanian spoke on the four
that NPAs did not reappear and
were managed properly, he
said. One must also take a close
look at the haircut banks were
neur deleted his LinkedIn pro- ARCHIS MOHAN said the government was Rating agency Crisil has Rs of the banking system — taking and whether or not it was
file. “These are big fraudsters New Delhi, 17 February using diversionary tactics and placed the debt instruments recognition, resolution, recap- worth it.
and that makes me worried,” ny, before starting his own tried to link the banking fraud of Punjab National Bank italisation, and reforms — but
he said. venture, Setex Group in 1993. The political slugfest over the with demontisation of ~1,000 (PNB) on “rating watch with said there was a failure to recog- More on www.business-
In 2016, Prasad had writ- Setex Group was involved Nirav Modi scam continued and ~500 notes on November developing implications”. nise the fifth R, which was reg- standard.com
ten to the PMO about being in trading activities in Hong on Saturday with both the rul- 8, 2016. Questioning the Crisil has sought clarity from
duped by Mehul Choksi, man- Kong, China, South Korea, ing Bharatiya Janata Party silence of the PM and the FM, the PNB to understand the
aging director, Gitanjali Gems Taiwan, Thailand, and (BJP) and the Opposition he said: “The PM can address timeline and quantum of
and business partner of Nirav Indonesia. Prasad, who has Congress accusing each other school students for one-and-a- crystallisation of this FIR. Citing the PNB complaint,
Modi, of ~130 million, after done a one-year course in of links with the absconding half hours, but he is silent on contingent liability, pros- > FROM PAGE 1 a CBI official said some bank
opening a retail story of the international business from jeweller. the scam.” He added that it pects of recovery, estimated employees deliberately omit-
Gitanjali brand. Drawing par-
allels with the Kingfisher and
the Indian Institute of Foreign
Trade, said after spending
Congress President Rahul
Gandhi asked why Prime
Defence Minister Nirmala
Sitharaman addresses the
was the PM’s duty to assure
the country that the banking
provisioning, potential
impact on capitalisation
3 held... ted entries purportedly issued
on behalf of the accused com-
Sahara scams, he said had ear- nearly 15 years abroad, he Minister Narendra Modi and press on the Nirav Modi issue system was safe. ratios and expectation of “The case has consequences panies to avoid detection.
lier knocked on the doors of came back to India in 2004. Finance Minister Arun Jaitley at the BJP headquarters in Earlier in the day, Congress additional capital support. on the country and the econo- Funds raised through LoUs
the Bengaluru Police, the He wanted to take a break were quiet on the matter, New Delhi on Saturday PHOTO: PTI leader Kapil Sibal said more my,” the court noted. The were meant to be used for pay-
Enforcement Directorate and from business, and thus while Defence Minister such skeletons would come UCO Bank admits move follows 2 first informa- ment of import bills of the
the Central Bureau of
Investigation, but to no avail.
invested his savings in the
stock market. When the mar-
Nirmala Sitharaman returned
the volley by saying that the
Sitharaman was liable to civil
and criminal defamation for
out of cupboard since “crony
capitalists with proximity to
~26-bn exposure tion reports (FIRs) filed by the
CBI against 20 people, includ-
accused companies whereas
these were fraudulently
Prasad’s letter to the PMO kets crashed in 2008, he start- Congress had no moral right to making false allegations. the PM, who travel with him UCO Bank on Saturday said ing Modi, his relatives, Choksi, utilised for discharging earlier
was made public by the ed looking for other avenues accuse the BJP since its own Sitharaman also harped on overseas in his aircraft and buy it had exposure of their firms, some directors and liabilities on account of the
Congress. He, however, denies of income. Prasad came across leader, Abhishek Manu the allegation that Rahul mines abroad” have a market ~26 billion in PNB fraud PNB employees. The accused buyer's credit facilities allowed
affiliation to any political par- a newspaper advertisement in Singhvi’s family had rented Gandhi had attended a pro- capitalisation of ~46 billion but case. In the normal course were charged with criminal by the overseas branches of an
ty. A 1984 agriculture science 2012 and invested in the retail out property to Nirav Modi’s motional event of Gitanjali their debt was ~94 billion. of business, its Hong Kong conspiracy, cheating, criminal Indian bank, it was alleged.
graduate from Andhra jewellery business with company in Mumbai. Gems, the company owned by He said the Central Bureau branch has been negoti- misconduct and abuse of offi- While in the case of foreign let-
Pradesh Agriculture Univer- Choksi, who promised him an Singhvi issued a statement Mehul Choksi, on September of Investigation FIR made it ating export documents cial position. The FIR was ters of credit (FLC), these were
sity, Bapatla, Prasad also has assured monthly income of claiming that his family com- 13, 2013. She said two days lat- evident that all the 151 letters against letter of credit based on two complaints filed opened initially for smaller
an MBA from the Indian ~1.5 million for an investment pany has no connections with er, a proposal for a loan of ~15.5 of understanding in question issued through authe- by PNB, the first in January amounts by creating purport-
Institute of Planning and of ~100 million. But eventual- Nirav Modi’s firms, except that billion was put up in were of 2017. nticated SWIFT message by and the second on February 13. ed entries in the core banking
Management in New Delhi. ly, Prasad lost all his money. of renting them some proper- Allahabad Bank’s board meet- “We are making a direct PNB after receiving acce- The second FIR said PNB solution system and sending
He belongs to a business fam- ty. “The tenancy ended in ing. “One director opposes it. allegation against the PM and ptance, UCO Bank said. PTI employees Shetty and Kharat, the relevant FLC through
ily in Andhra Pradesh and has More on www.business- December 2017,” he said. He is asked to resign. Join the FM that they knew about this in connivance with the firms SWIFT messages.
worked with a French compa- standard.com Singhvi added that dots,” she said. Rahul Gandhi scam,” Sibal said. owned by Modi and Choksi, Raids by the ED against
defrauded the bank of ~48 bil- Nirav Modi and others contin-
lion. ued for the third day on
With the first case regis- Saturday, with the agency say-

PNB jewellery industry loan exposure at 0.6% tered involving a fraud of Rs


2.8 billion, the total covers
LoUs of ~51.66 billion. Union
Minister of State for Finance
ing it seized diamonds and
jewellery worth ~250 million,
taking the total seizure value
to ~56.74 billion.
PUNEET WADHWA
New Delhi, 17 February
FUNDS GIVEN TO JEWELLERS been grappling with structur- risk beyond funded credit.
al asset quality issues for “Such instances of fraud and
jewellery stocks, such as
Tribhovandas Bhimji Zaveri
Shiv Pratap Shukla on
Saturday said the government
Fund and non-fund based exposure to gems and jewellery some time. The situation has further pressure on asset (TBZ), Thangamayil Jewe- was thoroughly investigating
Bankers in ...
Punjab National Bank’s sector across banks (~ billion) worsened since the revelation quality will be an overhang llery, and PC Jeweller have the PNB fraud case and would Prior to commencement of the
(PNB’s) fund-based exposure Fund-based Non-fund based of the ~100-billion fraudulent on valuations for PSU banks corrected in the range of 5-9 not spare anyone involved in it. meeting, public sector bank
to the gems and jewellery sec- letters of undertak- (especially PNB),” per cent. By comparison, the “Looking at the gravity of the executives had said the aim
Bank of Baroda 19.3 0.5
tor in 2016-17 (FY17) was 0.6 ing issued by PNB, Public sector the report added. S&P BSE has lost 0.6 per cent act committed by Nirav Modi, was to know each bank’s posi-
per cent of its loan book, sug- Bank of India 93.4 3.2 the country’s sec- banks have been It, however, said during this period. Titan the government will surely tion, seek ways to reconcile
gests a recent report by Canara Bank 42.5 4.0 ond-largest lender, grappling with the high exposure Company, however, was up work towards his extradition claims, and find ways to decide
Edelweiss Securities. Its non- in favour of three structural asset to gems and jew- 0.5 per cent. and will punish them for all the on liabilities. Along with the
fund-based exposure to the
IDBI Bank 25.2 27.5 diamond compa- quality issues for ellery was not nec- A K Prabhakar, head of fraud,” he added. The CBI con- entities owned by Nirav Modi,
sector was 0.1 per cent of the Punjab National Bank 23.6 4.3 nies run by jeweller some time essarily indicative research at IDBI Capital, said ducted searches at PNB’s banks have also begun to recall
loan book, according to the State Bank of India 158.0 30.2 Nirav Modi. of stress. The Nirav branded players could be branch at Brady House Fort, loans to the Mehul Choksi-
report written by analysts Since February Modi case was a beneficiaries of the scam’s Mumbai, which appears to be owned Gitanjali Gems and
Kunal Shah and Prakhar Union Bank 47.8 5.7 14, when the scam was one-off, international inci- fallout. “I think thanks to the the centre of the alleged scam. group entities. Choksi has also
Source: Edelweiss Report; for FY17
Agarwal. revealed, most PSB stocks dent. The scam has also taken goods and services tax, Six PNB employees were ques- been named as an accused in
Bank of India, State Bank have lost ground; PNB has the sheen off gems and jew- branded jewellery players tioned during the search. The the fraud. Besides steps to
of India, Canara Bank, and fund-based exposure to the overdrafts, cash credit etc. tanked 25 per cent. ellery stocks, with Gitanjali such as Titan will stand to CBI on Friday had conducted avoid a hit on their books,
IDBI Bank are other public sector, tops the list. In fund- Non-fund based facilities, on The Edelweiss report said Gems slipping 40 per cent gain. The recent scam... will searches at 20 properties in six banks have begun to review
sector banks with high fund- based lending, banks commit the other hand, are credit since bank employees were since Wednesday, as its repose investors’ faith in large cities linked to Choksi and his their systems and processes to
based exposure to the sector. the physical outflow of funds. facilities not involving the involved in the fraud, it cast a Managing Director Mehul players that have a trusted group companies. It had also ensure that potential fraud is
In the private sector IndusInd The various forms of fund- actual funds. shadow on the robustness of Choksi was also an alleged in and credible management,” searched the residences of the identified and corrective
Bank, with a 6.1 per cent based lending are loans, Public sector banks have processes and expanded the the scam. Other gems and he added. PNB employees named in the action taken.
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PEOPLE IN THE NEWS BINAY SINHA


Pulses high on agenda New jobs pace
slows down
as Canadian PM arrives in April-June
ABHISHEK WAGHMARE AND SOMESH JHA
SUBHAYAN CHAKRABORTY New Delhi, 17 February
New Delhi, 17 February
The pace of job creation in the organised sector fell
s Canadian Prime sharply during April-June 2017, a three-quarter low due

A Minister Justin
Trudeau touches down
in New Delhi today, state and
to significant job losses in manufacturing, latest official esti-
mates show.
The number of new jobs created declined by around 65 per
business delegates from both cent to 64,000 in April-June 2017 from 185,000 in January-
countries are looking at week- March 2017, according to the Labour Bureau’s quarterly report on
long discussions on trade and employment. Job creation during April-June was even lower
bilateral relations. than the 77,000 reported in the same three months a year ago.
Of the imports worth $4.1 The Labour Bureau conducts an establishment-based job sur-
billion from Canada in 2016- vey in eight sectors — manufacturing, construction, trade, trans-
17, pulses - yellow peas, green port, education, health, accommodation and restaurants, and
peas and red lentils (masur) - information technology. These constitute 81 per cent of the total
amounted to $1.1 billion, more number of factories in the country employing at least 10 workers.
than a quarter of the total, Finance Minister Arun Jaitley, quoting an independent study,

REUTERS
Vijay Shekhar Sharma, whose Paytm making pulses the central had said while presenting the Union Budget earlier this month
gained big from the note ban move, is point of the forthcoming that various measures tak-
trade discussions. Justin Trudeau, along with his wife and three children, arriving in Delhi on Saturday en by the government had
planning to approach NPCI and complain
about the ‘unfair leverage’ WhatsApp gets
The worth of import of puls- led to 7 million jobs being TRACKING THE DECLINE
with its recently launched UPI feature
es from Canada have come
down to about $500 million in
domestic legal options are
exhausted. While India feels
FAIR TRADE liferation in India - regulations
should be science-based and
created in in 2017-18.
Job losses in manufac-
Job creation 2017
2017-18, owing to government this is required to keep control
How India’s trade with country specific,” Bacon added. turing in April-June were Jan-Mar Apr-Jun
caps and duties on imports fol- on litigation and reduce the Canada shapes up against On the trade front, both gov- 87,000. In the previous Manufacturing 102,000 -87,000
lowing a supply glut in 2016- chances of extremely high its top trade partners ernments urgently want to con- year, 102,000 new jobs
Construction 2,000 10,000
17. The same restrictions this penalties from international Total trade in 2016-17 ($ bn) clude the CEPA talks since were created in the manu-
year, as well, are putting tribunals, most developed trade volumes remain woefully facturing sector. There Trade 29,000 7,000
Canada’s pulse exporting nations believe the Indian legal CHINA 71.45 low. Despite Canada’s southern were 3,000 job losses in Transport 3,000 -3,000
industry and African pulse system to be slow and corrupt,” USA 64.51 neighbour, USA, being India’s the transport sector in Accomodation 3,000 5,000
growers in a fix. a senior government official UAE 52.68 largest export destination, April-June, compared to & Restaurant
While pulses would feature said. bilateral trade has remained 3,000 jobs created in
both at the dining table and dis- India’s domestic markets SAUDI ARAB 25.08 low with the Great White North. January-March. IT & BPO 13,000 2,000
cussions, India and Canada will had a deluge of pulses in the HONG KONG 22.25 Two-way trade was only $6.1 The pace of employ- Education 2,000 99,000
be looking at realising broader last two years: 23 million billion in 2016-17, down two per ment generation slowed Health 31,000 31,000
CANADA 6.13 down in trade and infor-
aims of trade expansion and tonnes and an import of 6.6 cent from the year before.
investment promotion. million tonnes in 2016-17, and Source: Ministry of Commerce
Raw diamonds and gold are mation technology. While TOTAL 185,000 64,000
Currently, both countries an equal amount of production also important Canadian trade saw 7,000 new jobs Source: Labour Bureau
are engaged in negotiations of is estimated in 2017-18 with 5 with regard to pulses is the most imports. Exports from India being created in April-
the proposed Foreign million tonnes of imports important point we are trying are extremely broad-based June, against 29,000 in the
Investment Promotion and already reported till December. to put forward in the upcoming with no commodity constitut- previous quarter, the number of new jobs in the IT and BPO sec-
Protection Agreement (FIPPA) India effectively had 58 mil- meetings,” Gordon Bacon, CEO ing more than 8 per cent of all tor stood at 2,000, as against 13,000 in the previous quarter.
and the Comprehensive lion tonnes of pulses against a at Pulse Canada, the country’s outbound trade. Medicines, Job creation improved in education in the first quarter of
Economic Partnership consumption of about 45 mil- biggest pulses association told shrimps and prawns and jew- 2017-18, and 99,000 new jobs were reported, significantly high-
Agreement (CEPA) or the free lion tonnes for two years; a large Business Standard. ellery are the major export er than the 2,000 in the previous quarter. The construction
trade pact. excess, due to which the gov- Canada does not appear in items from India. and accommodation sectors also witnessed improved job cre-
Talks on the FIPPA had ear- ernment put a cap on import the top 25 trade-friendly coun- India had placed a condi- ation in the first quarter while the health sector reported new
lier been stalled by India’s of tur (red gram) at 200,000 tries of India, with total trade tionality that the trade pact jobs at the same level as in the previous quarter’s 31,000. Workers
decision to conduct negotia- tonnes and moong (black gram) amounting to about $6 billion in cannot be discussed until both hired through contractors and those who were daily wage earn-
tions for all investment pacts and urad (green gram) at 2016-17 and about $4.5 million nations reach a possible con- ers declined in April-June even as job creation continued its
under the framework of the 300,000 tonnes in total, and in April-November 2017-18, just clusion on the investment deal. momentum among regular workers.
In a move aimed at expanding its dairy model Bilateral Investment also hiking import duty on yel- 1 per cent of India’s total trade. There are 18 members of “Technological shifts could possibly be the reason why
business worth ~4 billion at present Treaty issued by the govern- low peas and chana while open- “Apart from predictability, Indian-origin in the 338-strong demand for skilled labour was more than that for semi-skilled
ment in 2015. ing up exports of all pulses. we expect that the cargo Canadian parliament, while labour. That is why we may be witnessing a dip in casual and
Nusli Wadia-promoted Britannia “Canada’s prime concern is Yellow peas, with a 50 per enroute should be exempt from four of them are ministers, all contractual jobs,” said Pronab Sen, country director, IGC’s
Industries is planning to enter into a JV with the clause that in case of cent import duty, form the bulk the changed import policy, and of whom are participating in India Central Programme, and former chief statistician to
with a global player an investor-state dispute,a for- of Canadian pulses imports. fumigation - a method of apply- business forum and govern- the government.
eign investor can seek interna- “Transparency, predictabil- ing gaseous pesticides in the ment-level discussions in
tional arbitration only when all ity and clarity in trade policy cargo vessel to prevent pest pro- Mumbai and Delhi. More on business-standard.com

Locally assembled big bikes


to cost more after duty hike
SOHINI DAS
Ahmedabad, 17 February

US President Donald Trump


is pushing for more duty cuts
on import of completely-built
American bikes such as
Harley Davidson to India. But,
there is a bigger concern both-
ering the international bike
brands operating in the coun-
try: the government’s deci-
sion to hike the duty on com-
pletely knocked-down (CKD)
bikes, which are locally
assembled. CKD bikes REUTERS
account for three-fourths of
the sales of these global REVVING IT UP
brands. Besides Harley Harley Davidson
Davidson, this is true for
British brand Triumph and 500-800 cc 800-1000 cc 1000-1600 cc 1600 cc + Total % Change
Japanese brand Kawasaki. YTD FY18 1,615 -14.6% 289 -25.8% 402 -18.0% 380 2686 -12.93
The decision of the Central
FY17 2,164 -14.5% 474 -59.4% 650 10.0% 402 -4.0% 3690 -21.60
Board of Excise and Customs
(CBEC) to slash the import duty FY16 2,531 -16.4% 1,168 42.7% 590 21.0% 419 37.4% 4708 1.40
on completely built unit (CBU) FY15 3,029 NA 818 -27.0% 489 -9.0% 305 19.6% 4641 140.84
bikes to 50 per cent from the
earlier 75 per cent for 800cc Total Domestic Sales
and above, and 60 per cent for YTD FY18 2,878 -27.0% 1,008 1.4% 1,021 13.3% 384 -10.0% 5291 -16.10
800cc or less affects only one-
fifth of their total voulume.
FY17 4,613 -11.4% 1,250 -39.4% 1,159 31.9% 574 -1.7% 7596 -13.01
Also, The CBEC hiked the FY16 5,207 -18.6% 2,062 25.5% 879 8.8% 584 5.6% 8732 -7.09
Customs duty on import of Source: SIAM Data
engine, gear box and transmis-
sion mechanism, which form SPEED BUMPS
the completely knocked down „ While the customs duty Kawasaki have all the past few months
(CKD) kits, to 15 per cent from on completely built bikes invested in local „ British marquee bike
the earlier 10 per cent. has been cut; only 20% assembly; govt hiked the
The recent duty hike on maker Triumph has already
of high-end bikes sold in duty on CKD kits written to the finance
CKDs, coupled with the goods
India are imported „ GST, cess and now the ministry highlighting the
and services tax (GST) and cess
— the Union Budget intro- „ Makers like Harley duty have pushed up plight of the industry
duced a 10 per cent social wel- Davidson, Triumph, prices by around 9% in
fare surcharge on imported
items in lieu of an education ing a local vendor base here. production ranks. 80 per cent of their portfolio is
cess which was 2 per cent — The firm, had in December CKD bikes (expected to touch
will push up prices of the luxu- What it means for Harley 2013 announced local produc- 90 per cent by June 2018).
ry biking industry and affect The company’s India sales have tion of its Street 750 model at Kawasaki has a CKD plant in
volumes in the short- to medi- been slipping since 2016-17 the Bawal (Haryana) plant, mak- Pune. Some brands such as
um-term. “There has already (when it had dipped by 21 per ing it the cheapest Harley avail- BMW Motorrad, Yamaha, MV
been a rise of 3 per cent tax cent year-on-year). This year, it able anywhere in the world. Till Agusta and Moto Guzzi, et
after the GST, then there was went down to 13 per cent for the then it had sold around 4,000 cetera, stand to benefit from the
the cess and finally this addi- April-January period. Even motorcycles in India since cut in CBU duty. They are like-
tional duty on CKD kits. Since then, Harley has 56 per cent entering the country in 2010. ly to pass this on to their cus-
the cess is not applicable on all market share in the 500cc to Sales jumped 140 per cent to tomers. Italian bike brand
products, the effective net rise 800cc segment, but players 4,641 units in 2014-15. But Ducati, which imports its entire
in costs will be around 8.6 to 9 such as Triumph and Kawasaki growth was flat in 2015-16, at portfolio from Thailand, using
per cent. Manufacturers will are already catching up. 4,708 bikes. An email sent to a free-trade agreement, will not
pass this on to consumers. This Harley’s global retail sales Harley remained unanswered see any change.
is expected to raise prices by fell 6.7 per cent in 2017. It While the government’s
~40,000 to ~120,000,” said shipped 241,498 motorcycles What it means for others intentions might be to boost
Vimal Sumbly, managing abroad during the year. The British brand Triumph said it local manufacturing instead
director, Triumph Motorcycles company has said it will close started assembling locally as of assembly, the industry feels
India. Analyst Abdul Majeed, down the Kansas City factory part of its Make in India strat- foreign players will want to
partner, PwC India, said in the and consolidate production egy. They were importing gain some volumes here
medium- to long-term, foreign at its Pennsylvania plant. It CBUs from Thailand till 2016- before they can develop a
brands would focus on build- also plans to cut 260 jobs from 17. This financial year, around local vendor base.
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INVESTING
BS TUTORIAL

Beat debt market volatility


per cent return in both. The amount Jayant Pai
at maturity is ~1,25,971 in both. In the
fixed deposit, the tax payable ranges
from ~2,597 to ~7,791, depending on
Financial literacy
the tax bracket. In case of the FMP, 1. In what context did the Economist, Robert Solow state:

with fixed maturity plans


the inflation-adjusted cost of pur-
chase is ~1,19,102. This reduces the “Computers are everywhere... Except in the statistics.”
taxable amount to ~6,870. The tax on A. Inflation
this at the rate of 20 per cent is B. Trade deficit
~1,371.9, far lower than in the case of
the fixed deposit. And when the ben- C. Productivity
The ability to lock in returns and offer indexation benefit makes FMPs attractive in the current efit of indexation across four years is
taken into account, the tax incidence
D. Gross domestic product

scenario of hardening yields gets reduced to zero.


Opt for growth option in an FMP 2. Which bank was recently ‘prevented from growing’ by
VIVEK AGARWAL instead of the dividend option. This the US Federal Reserve?
way, you can avoid the 28.33 per cent
A. Citibank

W
ith quantitative easing — the dividend distribution tax (DDT).
introduction of new money B. Wells Fargo
by central banks into the Liquidity challenge and credit C. Bank of America Merrill Lynch
financial system — being reversed, risk: FMPs have a few limitations
yields are rising across the world. This too. One is that they are not very liq- D. Deutsche Bank
trend is exerting pressure on yields in uid. Even though there is a provi-
the Indian debt market as well. In this sion to list FMPs on the stock 3. Who holds the record for being the youngest billionaire?
volatile scenario, one debt mutual exchanges so that investors can
fund option that investors can turn to trade in them, there is not much liq- A. Evan Spiegel
is fixed maturity plans, popularly uidity in these securities. Hence, B. Sara Blakely
known as FMPs. These funds have the investors should invest only that
C. Mark Zuckerberg
potential to offer steady and tax-effi- money which they will not require
cient returns to investors even in a ris- until maturity. If they try to exit D. John D Rockefeller
ing interest rate scenario. these investments before maturity,
Between 2014 and 2016, there was they may have difficulty in finding
4. Which company was initially known as X.com?
a rally in Indian bonds and the debt buyers or may have to sell at a sig-
market gave excellent returns. But nificant discount. A. Google
the market took a breather in 2017. FMPs are also subject to credit B. PayPal
The trend of falling yield for the risk. They invest in a variety of
benchmark 10-year government fixed-income instruments and thus C. Tesla
bond reversed, and it rose 10.95 per try to mitigate risk to some degree D. Snapchat
cent during the calendar year. With through diversification.
this reversal, the returns of debt funds Nonetheless, before investing
across the spectrum — from ultra FMPS ARE MORE TAX-EFFICIENT investors should ascertain the cred- 5. Which company is seen as instrumental in hastening the
short term to long term — were FMP Fixed deposit it quality of the instruments that demise of typewriters?
adversely affected. Bond prices have the fund manager plans to invest
inverse correlation with yields. When
Amount Invested (~) 100,000 100,000 in by referring to the Scheme
A. IBM
bond yields go up, bond prices come investors in FMPs are not affected. Interest rate (%) 8 8 Information Document (SID). B. Bell Labs
down, and vice versa. They will still be able to earn returns Returns generated at 25,971 25,971 Investors also need to bear in mind C. Wang Labs
FMPs are closed-end funds whose equivalent to the yield that existed at the end of 3 years (~) that FMPs are not guaranteed-return
D. Edison Inc
maturity can range from three months the time of investment. Maturity amount at the 125,971 125,971 instruments. They, however, do try to
to five years. The fund manager invests end of 3 years (A) (~) lock-in the current yields. The current
in fixed income instruments like gov- Tax efficient due to indexation yields are only indicative of the returns
ernment debt, commercial papers benefit: FMPs also offer their
Indexed cost @ 6% inflation that could be generated by them.
1951. It was eventually taken over by Getronics in 1999.

(CPs), money markets, etc that have investors the benefit of indexation. (for 3 years) (B) (~) 119,102 Not applicable An alternative to FMPs is to bet on
5. C. It was a calculator and word processor company founded in

the same maturity as the scheme. He The most popular FMPs are the ones Taxable amount (A-B) 6,870 25,971 open-end debt funds like income online bank. It changed its name to PayPal in 2002.
then holds these instruments until with a maturity period of over three Tax @ 10% tax bracket (~) 1,372** 2,597 funds, credit opportunities and 4. B. Founded by Elon Musk in 1998, it was one of the world’s first
maturity. years. Since debt funds offer tax Tax @ 20% tax bracket (~) 1,372 5,194 accrual funds if they are looking to 3. C. He attained the milestone at the age of 23 after Facebook’s IPO.
indexation benefits if held for more Tax @ 30% tax bracket (~) 1,372 7,791 get higher returns than bank fixed
Shielding investors from volatili- than three years, investors can gen- deposits but do not want to lock-in satisfaction of the US Fed.
ty: By holding the instruments in his erate much better post-tax returns Tax payable with 4 indexations 0 Not applicable their money in FMPs for three years. as at December 31, 2017, until it cleaned up its act to the
portfolio till maturity, the fund man- than bank fixed deposits. Investors (in any tax bracket) While income funds can be subject to prevented from growing its balance sheet beyond $1.90 trillion,
ager locks in the yield that existed at can claim even four indexation ben- **Taxation on debt mutual funds is 20% post indexation. It remains the same for all tax brackets. duration-related risk, credit oppor- 2. B. As a penalty for certain transgressions in 2016, the bank was
the start of the fund’s tenure. Investors efits in an FMP with three-plus years tunities funds carry credit risk.
are thus protected from any volatility of maturity. For example, an FMP Tax indexation is a very impor- tion-adjusted purchase price, the Investors who are looking for fixed
nation’s productivity.
that the debt market may witness dur- purchased in January-March 2018 tant concept that fixed-investor capital gains are reduced by a big returns and have a tenure of less than they were only playing a peripheral role in shoring up the
ing the scheme’s tenure. with maturity after April 2021 would investors need to understand. It margin. This brings down the three years (and hence can not avail 1. C. In 1986, he observed that while computers were ubiquitous,
FMPs can be very beneficial in a be eligible for four indexation bene- helps in increasing the purchase investor’s tax incidence quite dra- of the tax indexation benefit) can Solutions
rising interest-rate scenario, or when fits (for financial years 2017-2018, price of your debt mutual fund matically (See table: FMPs are more look at bank fixed deposits.
markets turn volatile. Even if interest 2018-2019, 2019-2020 and 2020-2021). investments to a new inflation- tax-efficient). In the example, The quiz master is head - marketing, PPFAS Mutual Fund
rates rise during the tenure of the fund Indexation benefit is not allowed on adjusted amount. When you calcu- ~100,000 is invested in both an FMP The writer is co-founder and CIO, Send your queries and feedback at yourmoney@bsmail.in
and returns from bonds turn negative, interest income from fixed deposits. late capital gains based on this infla- and a fixed deposit and earns an 8 Upwardly.in

HEALTH
>
1

FIT & PROPER The first step towards a personal memory maker Blood pressure
Your weekly health guide
drug can
BENEDICT CAREY “We found that jostling the ple with extraordinarily precise
prevent
Guarding against 17 February system when it’s in a low-func-
tioning state can jump it to a
memory have in common is
known as selective attention,
diabetes: Study
D
ecent memory is a mat- high-functioning one.” or “attentional control.” In a

sudden cardiac arrest ter of livelihood, of


independence, most of
all of identity.
If this system, once refined,
one day provides support for
people with extreme deficits, it
common measure of this, the
Stroop test, people see words
flash on a computer screen and
A drug commonly used to
control high blood pressure
Human memory is the will sharply improve lives name the colour in which a may also help prevent the
can vary if a person does ghost in the neural machine, a (insurers willing). The older word is presented. onset of type 1 diabetes in up
some extra physical work, or widely distributed, continual- person with creeping demen- Answering is nearly instan- to 60 per cent of those at risk
is under the effect of some ly changing, multidimension- tia will have more years living taneous when the colour and for the disease, a study has
emotional or psychological al conversation among cells independently. The veteran the word are the same — “blue” found. The drug, methyldopa,
stimulus. But arrhythmia is that can reproduce both the with traumatic brain injury displayed in blue — but slower has been used for over 50
much different — it is the capital of Kentucky and the may regain just enough when there’s no match, like years to treat high blood pres-
change in our normal heart emotional catacombs of that sharpness to find a decent job, “blue” displayed in red. The sure in pregnant women and
beat that is triggered by an first romance. or a career. men and women who compete children, according to the
alteration in the sequence of The news last week that sci- For most everyone else, the in memory competitions score study published in the
the electric impulses our entists had developed a brain central discovery behind the very highly on such tests and Journal of Clinical
heart receives. implant that boosts memory device — that goosing a wan- often do so well into their thir- Investigation.
VANITA ARORA — an implantable “cognitive But for those in the wor- most advanced techniques of dering brain can make it some- ties, when the ability is typical- It is on the World Health
Director & head Palpitations triggering prosthetic,” in the jargon — ried-well demographic — the machine learning. what sharper — is already ly on the wane. Organization’s (WHO) list of
Cardiac Electrophysiology Lab & cardiac arrest should be astounding even to 40-is-the-new-30 crowd, and Their implant, in fact, con- deeply familiar. Human beings This skill is partly inherit- essential drugs. But like many
Arrhythmia Services, When the heart is not func- the cynical. older — reports of a memory stitutes an array of electrodes have been doing this deliber- ed, but psychologists have drugs used for one condition,
Max Super Speciality Hospital tioning properly for a pro- App developers probably breakthrough fall into a differ- embedded deep in the brain ately, and forever: with caf- shown that just about anyone researchers found it useful for
longed period of time, it are already plotting yet anoth- ent category. that monitor electrical activity feine, nicotine, prescription can stretch his or her native something totally unrelated.
Fluttering of your heart is gives rise to a situation that er brain-exercise product based What exactly does it mean and, like a pacemaker, deliver a drugs like Ritalin, or more vir- ability using the same tech- “With this drug, we can
not always a sign of love, nor may lead to sudden cardiac on the latest science. that scientists are truly begin- stimulating pulse only when tuously, with a brisk run nique that the memory potentially prevent up to 60
is skipping of a beat. The arrest, which is different Screenwriters working on their ning to understand the biology needed — when the brain is around the park. champs do: mentally arrang- per cent of type 1 diabetes in
fluttering could be a sign from a heart attack. A sud- next amnesia-assassin scripts of memory well enough to lagging as it tries to store new “We have good evidence ing new names, facts or words those at risk for the disease,”
that you need to pay atten- den cardiac arrest means got some real-life backup for manipulate it? Which reaction information. that things like nicotine and in a deeply familiar place — said Aaron Michels from the
tion to your heart. So what if that the heart has suddenly the pitch meeting. is appropriate: the futurist’s, or When the brain is func- aerobic exercise improve along subway stops, for exam- University of Colorado
your health parameters are stopped functioning due to The scientists are in discus- the curmudgeon’s? tioning well, the apparatus some aspects of attention,” ple, or in a childhood room. Anschutz Medical Campus in
more or less fine, but if your irregularity of electric sions to commercialise the The only honest answer at remains quiet. said Zach Hambrick, a pro- In one continuing study, the US.
heart is not beating right, it is impulses. A sudden cardiac technology, and so people in this stage is both. “We all have good days and fessor of psychology at researchers at Washington “Some 60 per cent of peo-
reason enough to see a doc- arrest leads to almost instan- the throes of serious memory The developers of the new bad days, times when we’re fog- Michigan State University. University in St. Louis trained ple at risk of getting type 1 dia-
tor. Arrhythmias, also called taneous death. A person who loss, and their families, likely implant, led by scientists at the gy or when we’re sharp,” said “The stimulation may be acti- a group of 50 older adult vol- betes possess the DQ8 mole-
irregular heartbeats, flutter- is suffering from cardiac feel a sense of hope, thin University of Pennsylvania and Michael Kahana, a psychology vating some of the same sys- unteers to memorise word lists cule which significantly
ing, palpitations, and so on, arrhythmia for a long time is though it may be. These things Thomas Jefferson University, professor at the University of tems, only more directly and using location imagery — a so- increases the chance of get-
can put you in grave danger, at a high risk of cardiac arrest take time, and there are still built on decades of work decod- Pennsylvania and senior precisely.” called memory palace. ting the disease.”
even causing a sudden car- as the electric system of the many unknowns. ing brain signals, using the author of last week’s report. One such ability that peo- © 2018 The New York Times News Service PTI
diac arrest. Unfortunately, in person is not functioning
India, we do not have a properly. Some of the com-
national registry for cardiac mon symptoms of various
deaths, so it is difficult to
predict the number of peo-
ple dying due to SCDs. But a
forms of irregular heart beat
include breathlessness,
dizziness, fluttering in the
Scientists find link between chronic pain and diet change
look at the macro factors chest or irregular heartbeats
removes any doubt whether even in normal circum- PRESS TRUST OF INDIA “This preliminary research in like soy sauce and parmesan chronic pain for at least three
Indians are at the brink of stances. Other symptoms 17 February Kenya is consistent with what I am cheese, but is more commonly months or more and in at least
cardiac emergency. An India include chest pain, palpita- observing in my chronic pain found as a food additive. three quadrants of the body.
Spend research in the year tions, sweating, and confu- Scientists have found that dietary research here in the US,” In the Kenya study, the goal was Similar to what is seen with
2016 showed cardiovascular sion. In case the symptoms change could be an effective low- said Kathleen Holton from to test whether a dietary widespread chronic pain patients
diseases (CVD) kill 1.7 mil- are detected, the patient cost treatment for people with American University. intervention could in the US, most also
lion Indians every year. should be taken to a cardiac chronic pain. “We don’t know what exposure perform as well as or The results suffered from other
specialist. Preliminary research from a is leading to this susceptibility to better than over-the- demonstrated neurological symptoms,
What is abnormal beating A proper check-up from a small pilot study carried out in dietary glutamate, but this pilot counter medication in that when including headaches or
of the heart? cardiac electrophysiologist Meru, in eastern Kenya, shows a study suggests the need for a large- relieving pain. participants cut migraines, chronic
Our heart beats regularly will help determine whether link between chronic pain and scale clinical trial, since dietary With a sample size of monosodium fatigue, cognitive
and non-stop while we are arrhythmia is dangerous or consumption of glutamate, a change could be an effective low- 30 participants, the glutamate from dysfunction, and sleep
alive. It keeps on pumping not. With due medications, common flavour enhancer found in cost treatment option for researchers tested the their diets, their issues.
blood — even when we suffer increased physical activity, western and non-western diets developing countries,” Holton said. effects of removing MSG, symptoms “This would be
a heart attack, the pumping certain dietary changes, worldwide. As researchers study glutamate, increasing water intake, improved incredible if we could
of blood does not stop. Our periodic monitoring of pulse, The results, published in the they are gaining insights into how It also can act as an excitotoxin, or a combination of both, impact chronic pain
normal heart-beating and managing risk factors journal Nutrition, demonstrated the chemical works in the human over-stimulating and damaging or relative to acetaminophen (the simply by making slight
rhythm is around 60 to 100 can ensure a person contin- that when participants cut brain and body. In the brain, killing nerve cells. main treatment option available modifications to diet,” said Daniel J
beats per minute when the ues to live with a healthy monosodium glutamate from their glutamate is a common Glutamate is also a naturally in Meru). Clauw from the University of
body is at rest. The rhythm heart. diets, their symptoms improved. neurotransmitter. occurring chemical in some foods, The participants experienced Michigan in the US.
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India’s last red state is low


16.8 percent. the state grew a mere 4.8-percentage
Like other states in the north-east, points from 49.7 percent to
connectivity remains a major 54.5percent—the lowest among the 10
challenge for Tripura. With states analysed—to rank sixth in our
Bangladesh surrounding its north, analysis. It ranked ahead of Assam

on growth, high on health


south and west, the state is further (47.1percent), Gujarat (50.4 percent),
isolated from the mainland. A single Uttar Pradesh (51.1 percent) and
highway, National Highway 44, runs Madhya Pradesh (53.6 percent).
through the state, connecting it to the Nationwide, the percentage of
rest of India. About 59 years after the children who received full
former princely state merged with the immunisation— that includes polio,
Tripura, which goes to polls on Sunday, features in the bottom pile for per capita income Indian republic, it’s capital, Agartala,
was finally connected to the country’s
BCG, DPT, and measles
vaccines–during this decade rose 18.5
railway network in 2008. percentage points from 43.5 percent in
Despite this, the state showed the 2005-06 to 62 percent in 2015-16, as
best improvement in infant mortality IndiaSpendreported on April 28, 2017.
rate (IMR) among the 10 states
analysed, dropping 24 points from 51 High literacy rates for women, but
deaths per 1,000 live births in 2005-06 early marriages, motherhood too
to 27 in 2015-16. Behind Kerala (6) and Tripura has one of the highest female
Goa (13), Tripura’s IMR is now ahead of literacy rates in India (89.5 percent),
Karnataka (28) and Gujarat (34). earning it the State Decadal Award for
In terms of the mortality rate of literacy, 2001-2011. Majority of married
children under five years of age, the women in the state participate in
state dropped 26 points to now rank household decisions (91.7 percent)—
fourth (33 deaths per 1,000) among the better than the national average (84
10 states in our analysis. percent), and third best among 10
These positive health outcomes states analysed. Yet, the number of
may be attributed to Tripura’s women with more than 10 years of
improved antenatal care. In schooling, at 23.4 percent, is
2015-16, the percentage of Tripura has the second lowest in our
women visited by a health care one of the analysis and much worse
worker at least four times highest than the national average
during pregnancy—the female (35.7 percent).
minimum requirement literacy rates Further, almost a third of
according to the World Health in India women (33.1 percent) in
Organization’s guidelines — Tripura are married before
rose to 64.3 perent from 50.6 the age of 18—the second
percent in 2005-06. Gujarat’s coverage highest proportion after Rajasthan
of antenatal care, which stood at a (35.4 percent) and higher than the
similar level of 50.1 percent in 2005-06, national average (26.8 percent).
leaped 20 percentage points ahead to However, while Rajasthan improved
70.6 percent in 2015-16. by nearly 30 percentage points over the
Tripura’s per capita health decade to 2015-16, Tripura reduced
spending (~2,266) is the third highest early marriages by a mere 8.5 percent
among the 10 states —after Goa points since 2005-06.
(~2,927) and Meghalaya (~2,366)—and These social conditions have their
even higher than the much richer consequences: Nearly 19 percent of
Kerala (~1,437), Gujarat (~1,156) and women aged 15-18 years in the state are
Karnataka (~1,043), according to the pregnant, more than twice the national
NHP 2017. average of 7.9 percent.
Further, only 9 percent of people in In Tripura, more than half the
Tripura use private health care for their women of reproductive age, or 54.5
needs compared to 55.1 percent, are anaemic. Despite a 10.6
ALISON SALDANHA & SWAGATA YADAVAR
(INDIASPEND.ORG)
and is the fifth-most literate state in
the country, according to the 2011
isolation, communication bottleneck,
inadequate exploitation, inadequate
HEALTH INDICATORS OF TRIPURA percent nationally, while
69.1 percent of all deliveries
percent improvement over 10 years,
the prevalence of anaemia is the
Census. The state’s sex ratio, at 960 use of forest and mineral resources, VIS-A-VIS OTHER STATES take place in a public health second highest after Gujarat (54.9

T
ripura, the north-eastern Indian females per 1,000 males, is above the low progress in industrial field and facility compared to 52.1 percent) and higher than the national
state that goes to the polls on national average of 942. On multiple high unemployment problem,” said State Stunting Infant percent nationally, show average (54 percent).
Sunday is the last surviving social and health indicators, Tripura the state’s Economic Survey 2015-16. (%) Mortality Rate (%) NFHS-4 data for 2015-16. Early marriage, and lower
bastion of the Communist Party of competes with Goa, Kerala, In institutional births, education could be underlying factors
India-Marxist (CPI-M). But the small Karnataka and Gujarat — which rank Methodology of research Kerala 19.7 6 Tripura, while reporting an of Tripura’s continuing struggle with
state — its population is 3.6 million, first, eighth, 10th and 12th on per For our analysis, we compared Goa 20.1 13 improvement of 33- anaemia among women of
comparable to Jaipur — has become capita income (2014-15) — our Tripura’s performance with nine other Meghalaya 43.8 30 percentage points to 79.9 reproductive age. Anaemia during
critical for the ruling Bharatiya Janata analysis showed. states and the national average, on 18 percent in 2015-16, still falls pregnancy increases the chances of
Tripura 24.3 27
Party’s (BJP) plans to expand its base But, at 19.7 percent, Tripura also development indicators in health, behind at rank seven in our foetal deaths, abnormalities, preterm
in India’s north-east. holds the highest unemployment education, gender, employment and Gujarat 38.5 34 analysis. Though it is above and underweight babies, and causes a
Under the incumbent CPI (M)-led percentage in India —four times the access to better infrastructure. Assam 36.4 48 the national average (78.9 fifth of maternal deaths, IndiaSpend
Left Front alliance for 25 years now — national average (4.9 percent), showed The period of comparison Karnataka 36.2 28 percent), only Assam (70.6 reported in October 2016.
and earlier for 10 years between 1978 an IndiaSpendanalysis of the stretches over a decade percent), Uttar Pradesh (67.8
and 1988 — this is the first time in ministry of labour’s annual from 2005-06 to 2015-16, India Avg 38.4 41 percent) and Meghalaya Good access to drinking water,
Tripura’s history that the BJP has Employment-Unemployment using data from the Uttar Pradesh 46.3 64 (51.4 percent) fare worse. power but sanitation is a concern
appeared as a major contender for Survey, 2015-16 report. National Family Health Madhya Pradesh 42 51 Progress on this indicator At 92.7 percent, access to electricity for
state rule. Agriculture is the main source of Survey for 2005-06 (NFHS may be related to the lack of households in Tripura is better than
Rajasthan 39.1 41
Prime Minister Narendra Modi of employment for 64 percent of the AN 3) and 2015-16 (NFHS-4), specialist doctors in the national average (88.2 percent) and
the BJP has promised a job for every state’s population but 60 percent indiaspend.org the National Health Profile Tripura’s community health comparable to wealthier states of
household in Tripura and special of the state is forestland, and STORY (NHP) 2017, the ministry of Samajwadi Party and the Congress centres (CHCs). Of the 80 specialist Kerala, Goa, Gujarat and Karnataka.
economic zones for food processing, barely 27 percent of Tripura’s labour and employment, respectively in 2016—the cut-off year doctors needed in Tripura’s CHCs, Over 87 percent households in Tripura
bamboo, textiles and so on, the Mint undulating land is available for and the Economic Survey 2017-18. for our analysis. Kerala is another on- only one was in position, according to have piped or protected source of
reported on February 13. farming. The states chosen for our analysis off bastion of the CPI(M), while latest rural health statistics from 2016. water—below the national average of
“Unemployed youths of Tripura are Tripura also features in the bottom include development leaders with Karnataka is a Congress-ruled state. Based on 2011 population 89.8 percent households.
striving for being employed, suffering pile for per capita income, ranking 24 high per-capita incomes such as numbers, while there are enough sub While Tripura’s open defecation
from job droughts,” he said at an of 36 states and union territories, Kerala, Goa, Gujarat and Karnataka, Public health care is effective but centres, there are considerable rate is 3.5 percent—among the lowest
election rally. showed India’s Economic Survey and laggards with poorer incomes short of doctors shortfalls in the number of PHCs and in the country, nearly 40 percent of its
“Next government in Tripura will report for 2017-18. With an income of such as Madhya Pradesh (MP), In terms of stunting (low height for CHCs needed in the state—14 percent population still does not have access to
be of the BJP,” said BJP president Amit ~71,666 per person in 2014-15, Tripura Rajasthan, and Uttar Pradesh (UP), age) and wasting (low weight for and 26 percent respectively, according “improved sanitation”, toilets where
Shah at a poll rally. “There is anger stood below the national average ( along with Assam and Meghalaya, height) of children under five years of to this analysis by Observer Research waste is disposed without human
against the CPM government ~86,454), between backward states like Tripura’s neighbours in the north- age, Tripura improved its health care Foundation, a think tank. contact. Still, as the chart below shows,
throughout the state, because of their Rajasthan (~75,201) and Madhya east region. efforts considerably over the decade Tripura still struggles with this is better than most states and
misrule Tripura stands last when it Pradesh (~56,182). Politically, four of the states— to 2015-16. It now ranks third among antenatal care: Only 7.6 percent much better than wealthy Karnataka.
comes to development.” What holds Tripura back? “High Madhya Pradesh, Rajasthan, Goa and the best states on both counts — women received all recommended
The green hill state’s rate of poverty, low per-capita income, Gujarat — are under BJP-rule. While ahead of Karnataka and Gujarat— in types of antenatal care as compared to Reprinted with permission from
development parameters are mixed. low capital formation, inadequate UP and Assam are also under the BJP our analysis. The state’s stunting rate 21 percent nationally. IndiaSpend.org, a data-driven, public-
It has a literacy rate of 87.8 percent infrastructural facilities, geographical today, they were ruled by the is 24.3 percent, and its wasting rate is Further, immunisation coverage in interest journalism non-profit organisation

IMO
knowledge?In a public event on ‘Gold
French farmer finds happiness
in life before machines
Monetization Scheme’, PM Shri Narendra
Modi publicly acknowledged Mehul Choksi
as "Mehul Bhai"
https://telegram.me/AllEpapers
Rajdeep Sardesai@sardesairajdeep
Every few hours, info is 'fed' on how much
money seized from Nirav Modi properties. REUTERS
Would love to know how much money is Paris, 17 February
really seized or are the nos being floated only
for damage control before a gullible nation?
Every scam, same story! #PNBScam
W hen farm machinery revolu-
tionised French agriculture in
the years after World War II, a young
Barkha Dutt@BDUTT
For perspective: 270,000 Indian farmers Jean-Bernard Huon turned his back
killed themselves in the past 15 years ; 3000 on the new technology.
Nirav Modi (pictured) and Mehul Choksi are suicides in 2015 when study found 80% Half a century later, in a corner of
alleged to have swindled PNB of ~110 billion suicides driven by unpaid loans. Average value southern Brittany on France’s west
PNB BANKING FRAUD of their loan: 2 lakhs. Now think of 11,000 crore coast, Huon still uses oxen to plough
Bhupendra Chaubey@bhupendrachaube #NiravModi fraud & feel your blood boil at his fields, determined to preserve an
I haven't paid my credit card bill this month, I these Fat Cats ancestral, peasant way of life.
have already received 3 SMSes and two phone INDIA WINS ODI SERIES AGAINT On the small farm where he grew
calls. #NiravModi took 11 thousand crores and SOUTH AFRICA up, the garrulous, white-bearded 70-
he didnt receive any warning? #viewpoint Sachin Tendulkar@sachin_rt year-old and his partner Laurence
Remarkable innings by @imVkohli to get to his milk eight cows by hand, grind flour
Sonam Mahajan@AsYouNotWish manually and tirelessly collect
The Nirav Modi fraud is being branded as a 35th ODI century. Congratulations #TeamIndia
on winning an ODI series for the first time in manure to fertilise the crops that
systemic error. Why is the banking system
South Africa. Great achievement ???? #SAvIND feed his livestock.
flawless when it comes to common people? For
Huon’s manual approach to sub-
us, every penny is recorded. There are time to Ravi Shastri@RaviShastriOfc
time tax deductions even on the earned
sistence farming makes him a rarity
Proud of you all. You showed real character. in the European Union’s biggest agri-
interest. The systems err only for the rich and Enjoy the moment #TeamIndia
the powerful. cultural economy. He shuns France’s
HASSAN ROUHANI IN INDIA hypermarkets, instead selling his Jean-Bernard Huon is determined to preserve an ancestral, peasant way of life
Raveena Tandon@TandonRaveena Javad Zarif@JZarif pork, veal and butter to those who
So - Lalit Modi gets away, Vijay Mallya still With President Rouhani in his first state visit to visit his ramshackle farm in Riec- some concessions to comfort. He to market his goods and has have to do it with the hoe.”
having fun, Nirav Modi penthouses in NYC, ... . India. Huge & enthusiastic turnout for his sur-Belon. switched from work hors- eschewed distribution trends like Huon hopes to find a successor to
I’m done with working hard . Friday Prayer speech in Hyderabad's Makkah “I’m a happy outsider,” He shuns France’s es to oxen that are more farmers’ markets. preserve the traditional spirit of the
Ram Subramanian@VORdotcom Masjid focused on solidarity among Muslims & Huon said on the farm hypermarkets, docile. More recently, as Nor will he criticise farmers who farm, which he plans to donate
Kashmiri terrorists don’t do even 0.000001% of compassion for humankind. Official meetings where he lives without instead selling his age imposes its own limits embrace modern-day machines and rather than sell. Nonetheless, he
the damage that #NiravModi and his kind do in Delhi on Sat with agreements to sign. hot water. “I’ve always pork, veal and on his activities, he invest- chemicals, including those who use recognises that whoever follows will
to our nation. Maybe it’s time we re-define managed by myself, I’ve butter to those ed in two tractors for the the weedkiller glyphosate, the subject have to make changes as regulatory
Maya Mirchandani@maya206
what terrorism means India already walks a tightrope when it comes
never been rich but what who visit his heavy-lifting of hay. of intense debate in Europe over its pressures become ever tougher.
to balancing national interest regarding ties do I care?” ramshackle farm His earthy existence res- potential health risks. “I lived in a time when you could
Randeep S Surjewala@rssurjewala “Farmers today have a in Riec-sur-Belon onates at a time when “People criticise and it’s good to set up easily, you just had to have
Prime Minister knows Mehul Choksi? Modi Govt with #Iran & its partnership w/ America. Pres
Rouhani’s strong words against US interference lot more land and animals intensive farming is criticise, but you have to know why it some land and you could produce,”
denies it? Nirav Modi is in Business Delegation than me, but they’re not necessari- increasingly criticised and local, came about. Chemicals were a libera- he said.
in Davos, Switzerland. Modi Govt denies in politics, peace and security in #MiddleEast
in Delhi certainly awkward! 1/2 ly happier. They face a lot of organic food supply is in vogue. tion for farmers. Can you imagine? You “People like us shouldn’t exist any
constraints.” While his production is effective- apply some glyphosate and you don’t more, but as long as we’re around
In the last decade, he’s made ly organic, he refuses to use the label have any more weeds. Otherwise you they have to put up with us.”
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8 WORLD
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MUMBAI | 18 FEBRUARY 2018 1

Qualcomm nixes $121-bn Broadcom bid China warns US


IAN KING
17 February
that appropriately reflects the
true value of Qualcomm shares,
before he began his deal spree.
For Qualcomm board, the
against imposing
Q
ualcomm’s board said
discussions with
Broadcom failed to per-
and ensures an appropriate
level of deal certainty, can be
obtained,” the company said.
Broadcom Chief Executive
decision to shun the offer will
test shareholders’ faith in man-
agement to turn around a busi-
ness that’s struggled over the
metal tariffs
suade the chipmaker to sign off Officer Hock Tan will now have past two years. Qualcomm’s BLOOMBERG
on a $121 billion takeover offer,
making it more likely share-
to keep working to gather
enough support for his asser-
board includes Chairman Paul
Jacobs — the son of the com-
17 February China flooded
holders will get to decide on the tion that he has a better idea of pany’s founder — and Steve China said proposed US tar- US with
fate of the deal. At the same
time, Qualcomm said it found
how to run a chip company
than Qualcomm’s current team
Mollenkopf, who succeeded
Jacobs as CEO. They’re both
iffs on imported steel and alu-
minum products are ground- solar panels
the meeting on Wednesday to does. Qualcomm’s manage- part of an engineering-focused less and that it reserves the
be “constructive,” and that it ment has stuck to its strategy — leadership team committed to right to retaliate if they are CHRIS MARTIN
would be open to further dis- one that was once pervasive in taking market-leading mobile- imposed. 17 February
cussions. the $380 billion industry — chip technology into new areas The US recommendations,
“The board remains unani- that success is tied to investing such as servers, personal com- unveiled by the Commerce Chinese suppliers flooded
mously of the view that this heavily and working to expand puters and automobiles. Department on Friday, aren’t the US solar market with
proposal materially underval- into new areas. Their task has been compli- consistent with the facts, panels at the end of last
ues Qualcomm and has an Tan has had an uninter- cated by challenges to Wang Hejun, chief of the trade year, as customers sought to
unacceptably high level of risk, rupted run of victories as he’s Qualcomm’s lucrative technol- remedy and investigation avoid paying President
and therefore is not in the best built one of the largest compa- ogy-licensing business, which bureau at China’s Ministry of Donald Trump’s 30 per cent
interests of Qualcomm stock- nies in the industry through a funds the company’s industry- Commerce, said in a state- import tariff.
holders,” Qualcomm said in a string of takeovers. Investors leading research and develop- ment posted on its website. Fourth-quarter
letter to Broadcom Friday. have rewarded his ability to ment spending. Regulators Commerce Secretary Wil- deliveries from China were
Qualcomm shareholders rapidly combine acquired com- around the world are fining or bur Ross said the US may almost 11 times higher than
are scheduled to vote on a slate Qualcomm had agreed to the meeting in New York this week on the condition that Broadcom panies and squeeze out more investigating Qualcomm, sup- impose quotas on imports of in the first nine months of
of Broadcom’s nominees to the comes ready to talk about a higher price REUTERS profit. His strategy is based on porting elements of Apple Inc.’s aluminum and steel, includ- 2017, according to a report
board at a meeting on March the belief that chip-industry claims in a lawsuit alleging ing a tariff of at least 24 per cent Friday by Bloomberg New
6, giving investors the chance to get sign-off from government While the board was pleased difficult to know what antitrust growth has slowed, and there- Qualcomm abuses its dominant on steel imports from all coun- Energy Finance.
to effectively approve the pro- agencies around the world. that Broadcom seemed willing measures might be required, fore spending needs to be position in mobile chips. tries. While it’s the strongest Manufacturers also hauled
posal. If elected, the new direc- Before the meeting between to divest assets beyond what it Qualcomm said. focused and restrained. Qualcomm has countered that it indication yet that President panels and cells across the
tors would be able to override management, Broadcom insist- had initially proposed to avoid Qualcomm also dismissed That tactic has resulted in a expects to win in court over time Donald Trump’s administra- border from Mexico, Canada
the current board’s opposition ed that its increased offer was its competition issues, Qualcomm the Broadcom’s offer of an $8 company that reported annual and overturn some of the more tion is ready to take action on and other countries to beat
to the latest, sweetened offer of best and final. complained that Broadcom billion break-up fee if the deal sales of $17.7 billion in the latest than $4 billion it has been fined. its protectionist agenda, Ross the import duties that were
$82 a share. Qualcomm shares were continued to resist agreeing to fails. The payment, "does not fiscal year, up from $2.5 billion If no agreement with said “it wouldn’t surprise us” if announced last month.
Qualcomm had agreed to down less than 1 per cent to $65 other commitments that could come close" to compensating in 2013. Net income was $1.9 Broadcom is reached, the measures were challenged. The tariffs don’t apply to
the meeting in New York this at 10:06 a.m. while Broadcom be expected from regulatory shareholders for the risk of a billion last year. Investors have Qualcomm’s board is “confi- The US already has excessive the first 2.5 gigawatts of
week on the condition that slid 1.1 per cent to $248.97. agencies. Broadcom also botched deal, Qualcomm said. poured money into Broadcom dent” in the company’s ability protections on domestic iron imports this year, and
Broadcom comes ready to talk Aside from the offer price, declined to answer questions “Qualcomm’s board is open stock, which is now trading to continue to execute its and steel products, according there’s as much as 5 giga-
about a higher price and to Qualcomm’s reservations about the future of Qualcomm’s to further discussions with above $250, an almost fivefold growth strategy. to Wang. watts of solar equipment
explain better how it planned hinged around antitrust issues. licensing business, making it Broadcom to see if a proposal advance from where it was BLOOMBERG “If the final decision already stashed in ware-
impacts China’s interests, houses and ports around the
China will certainly take nec- country. That’s enough to
essary measures to protect its supply US developers for

Russian oligarch Apple’s spaceship campus has own rights,” Wang said.
American steel companies
and steelworker unions have
about six months, said Hugh
Bromley, a solar analyst at
New Energy Finance,

walks away from


been pushing Trump to follow undermining the impact of

one major flaw, and it hurts through on his promise to pro-


tect the industry. China’s trade
the protectionist policies on
manufacturers. Shipments

$8-billion empire
partners have complained for from exempt suppliers inc-
years that its industry unfairly luding First Solar may extend
Distracted staff are walking into glass panes designed to foster collaboration benefits from state subsidies, that period to nine months.
and dumps its products at “The slow pace of DC
ILYA KHRENNIKOV in Moscow trading on Friday, below-market prices. While bureaucracy has allowed the
17 February to the lowest since 2012. China only accounts for about solar industry to insulate
Galitskiy said he decided 1 per cent of US steel imports, itself from the full impact of
In 1998, Sergey Galitskiy to sell because his views on it could challenge US action at the tariffs,” Bromley said in
opened a small grocery in his running Magnit clashed with the World Trade Organization, an interview.
hometown of Krasnodar, 800 those of other shareholders, a process that could take years. BLOOMBERG
miles south of Moscow. Over as the market demanded fast China has long been at the
the next two decades he growth and he preferred to epicentre of global over-pro-
expanded that modest opera- focus on profitability, duction of steel. But the trade gressional approval.
tion into an empire with Interfax reported. dynamics are shifting as alu- Komiyama said steel and
almost $20 billion in sales “It was a difficult decision minum exports take centre aluminum shipped to the US
and 16,000 stores across since I founded this compa- stage. In January, China from Japan don’t pose any
Russia, amassing a fortune ny,” he said at a signing cere- boosted its shipments of the threats to American security.
valued at some $5 billion in mony in Sochi, clearly emo- lightweight metal for a third “This an issue within the US
the process. On Friday, he tional, in a broadcast shown month, as domestic supplies government. Nothing has
walked away. on RBC Television. “But noth- spill overseas, while steel car- been decided and therefore
Galitskiy will quit as chief ing is forever. I shouldn’t goes shrank to the lowest in the Japanese government
executive officer of Magnit oppose this process. If nearly five years as strong doesn’t have any further com-
PJSC after selling 138 billion investors want changes, they domestic growth mops up ment,” he said.
rubles ($2.5 billion) of shares should get them.” production and environmen- Still, Kobe Steel warned
— 29 per cent of the company The haste with which the tal curbs trim capacity. there could be ramifications.
— to the state-controlled VTB deal was put together, the rela- Rather than tar- “We need to look
Group, Magnit said in a regu- tively low price, and the fact iffs on all imports, India’s steel more closely into
latory filing. Though he had that the buyer was a state-con- Trump may opt for industry, this, but if these
been cutting his trolled bank indi- a more “surgical” which vies measures are enact-
stake in the chain Though Sergey cate that Galitskiy The Apple Campus 2 in Cupertino, California. The building is designed to house some 13,000 employees REUTERS approach, Ross with Japan as ed, it would be diffi-
in small incre- Galitskiy had been made “an emotion- suggested at a the world’s No cult for the industry
ments in recent cutting his stake al rather than a MARK BERGEN they detracted from the building’s design, Apple’s design chief, told the magazine in meeting with law- 2 after China, to avoid any
years, the market in the chain in rational decision,” 17 February the people said. They asked not to be iden- May. “The achievement is to make a build- makers this week. probably impact,” an official
was surprised to small increments, said Alexey Krivo- tified discussing anything related to Apple. ing where so many people can connect and On steel, for exam- won’t be hurt for the steelmaker
see him bail the market was shapko, director at The centrepiece of Apple’s new head- Another person familiar with the situation collaborate and walk and talk.” ple, the president said. JFE Holdings,
almost entirely — surprised to see Prosperity Capital quarters is a massive, ring-shaped office said there are other markings to identify An Apple spokeswoman declined to could go with the recom- Japan’s second-biggest steel-
selling his shares him bail almost who helps manage overflowing with panes of glass, a testa- the glass. comment. It’s not clear how many inci- mended option that would maker, said it will discuss a
at 3.9 per cent entirely $4.2 billion in ment to the company’s famed design- Apple’s latest campus has been lauded dents there have been. A Silicon Valley- levy a tariff of 53 per cent on response with related parties
below Thursday’s assets, including obsessed aesthetic. as an architectural marvel. The building, based spokeswoman for the Occupational imports from 12 countries — after looking more closely at
closing price. After Friday’s Magnit shares. There’s been one hiccup since it opened crafted by famed architect Norman Foster, Safety and Health Administration referred a list that includes China, the US announcement.
deal, Galitskiy owns about 3 But there have been last year: Apple employees keep smacking immortalised a vision that Apple co- questions about Apple’s workplace safety Russia, India and South India’s steel industry,
per cent of Magnit. underlying problems that into the glass. founder Steve Jobs had years earlier. In record to the government agency’s web- Korea — but allow exemp- which vies with Japan as the
The disposal comes after must be addressed, Surrounding the building, located in 2011, Jobs reportedly described the build- site. A search on the site based on Apple’s tions for allies such as Japan, world’s No 2 after China,
Magnit had struggled to man- Krivoshapko said, and the Cupertino, California, are 45-foot tall ing “a little like a spaceship landed.” Jobs name in California found no reports of Germany and Canada. probably won’t be hurt,
age its rapid expansion and company might well benefit curved panels of safety glass. Inside are has been credited for coming up with the injuries at the company’s new campus. Japan is viewing this as according to K K Pahuja, pres-
fend off competitors, especial- from new leadership. work spaces, dubbed “pods,” also made glass pods, designed to mix solo office areas It’s not the first time Apple’s penchant more of a security issue, said ident of the Indian Stainless
ly X5 Retail Group controlled “Magnit has been under- with a lot of glass. Apple staff are often with more social spaces. for glass in buildings has caused problems. Yasuji Komiyama, director of Steel Development Asso-
by rival billionaire Mikhail performing for the last two glued to the iPhones they helped popu- The building is designed to house some In late 2011, 83-year-old Evelyn Paswall the metal industries division ciation, in a report in the
Fridman. With its sales growth years,” Krivoshapko said. larise. That’s resulted in repeated cases of 13,000 employees. Wired magazine, first to walked into the glass wall of an Apple store, at Japan’s Ministry of Business Standard. Stainless
slowing, Magnit in 2016 ceded “Management has been miss- distracted employees walking into the pay a visit at its opening last year, described breaking her nose. She sued the company, Economy, Trade and Industry. steel “is not a big-ticket item,
the title of Russia’s largest ing sales targets and pushing panes, according to people familiar with the structure as a “statement of openness, arguing it should have posted a warning on The Commerce Department since the quantity is not very
retailer to X5, and its shares an unrealistic plan to the incidents. of free movement,” in contrast to Apple’s the glass. The suit was settled without any may invoke a seldom-used high,” Pahuja told the news-
have fallen by more than half improve margins by produc- Some staff started to stick Post-It notes typically insular culture. “While it is a tech- cost to Apple, according to a legal filing in section of the 1962 Trade Act, paper. India itself imposes
in the past 12 months. Magnit ing its own food.” on the glass doors to mark their presence. nical marvel to make glass at this scale, early 2013. which allows the president to extensive trade barriers on
dropped as much as 7 per cent BLOOMBERG However, the notes were removed because that’s not the achievement,” Jony Ive, BLOOMBERG impose tariffs without con- Chinese steel.

Mercedes-Benz unveils $2-million AMG Cigarette Racing boat


HANNAH ELLIOTT Marauder, which was 1,300 cost $1.8 million, was considerably cost of the boat, but the buyer here is weight savings mostly reflect that
17 February pounds lighter than its own pred- more volatile under high speeds. the same as the guy who buys high- its deck and many components—
ecessor, even though the latest This one is far more stable, says end cars,” Braver says. “They’re very including the hull, bulkheads, and
On Thursday in Miami, Mercedes- boat is bigger and has more seat- Cigarette Racing Chief Executive concerned with fit and finish. They engine hatch—are made from the
AMG GmbH debuted its latest col- ing. At 51.5 feet long and 9 feet, 6 Officer Skip Braver—the crucial do have a lot of money. What they material.
laboration with Cigarette Racing, inches wide, it weighs the same as thing when you’re battling six-foot don’t have is time.” “Carbon isn’t the answer to
the 515 Project One. the 50-foot Marauder but seats an waves on the open ocean. That’s While Mercedes won’t actually everything, but it is the secret
The $2 million superboat has additional passenger (six total) and why Braver bought the company place an AMG engine in this boat, sauce,” Braver says.
3,100 total horsepower and can hit offers 30 per cent greater surface in the first place: Anyone can make the vessel bears significant similar- In addition to the carbon fiber,
a top speed of 140 miles per hour. area. It’s more advanced than any a boat go faster, but it takes real ities with the Project One supercar: the most significant engineering
The look and colour scheme of the of the nine previous engineering prowess to carbon-fibre construction, massive change, says the designer, was to
boat is based on the Mercedes- AMG-paired boats The superboat make it stable. power, and a set-back cabin with a lower the vessel’s centre of mass
AMG Project One hybrid supercar Cigarette has produced, has 3,100 total “I was tired of getting long front end. Inside, six bolstered for improved stability and cushion
developed from Formula 1; it’s the featuring a totally new horsepower and the crap kicked out of me seats are covered in exposed-weave at high speed while leaving the
fastest, most advanced boat deck and hull composi- can hit a top in other boats,” Braver carbon fiber and Garmin computer “aggressive shoulders” at its rear
Mercedes-AMG and Cigarette tion and different speed of 140 tells Bloomberg this systems. They blend with the exte- untouched. This allowed the large
Racing Team have produced in weight balance. miles per hour week at the Cigarette rior AMG-designed, matte black sun cushion to be flush with the
their 11-year partnership. This is a far cry both Racing factory 20 min- and silver paint and special badging hatch as well, which maximises the
In past years, they have paired from the cigarette boat’s prede- utes outside Miami. He bought the that matches the Mercedes-AMG space available for crucial things
multiple cars with cigarette-style cessors: the original “rum-run- 49-year-old company when it was Project One. one does on a multimillion-dollar
boats, which are long, narrow crafts ner” boats used during facing bankruptcy in 2002 and has The key to the smooth ride of pleasure craft—such as lounge.
made for speed. These include the Prohibition to out-run larger ves- since developed it into a 68-person the 515 Project One is a special Project 515 is powered by a pair
SLS, the G-Wagen, the Vision GT sels and the 1960s-era “go-fast” operation producing 40 hand-built cutout section along the hull of of Mercury Racing engines that pro-
Concept, and the GT S. The part- boats designed for offshore rac- boats a year. the boat, which creates a cushion The racing boat next to its inspiration, the Mercedes-AMG Project One duce 1,350 horsepower apiece when
nership works mainly to buoy each ing (and drug smuggling) across Six of the special 515 Project One of air and water that—combined hypercar PHOTO COURTESY: MERCEDES-BENZ activated by a special “Race Key”
brand’s image and, for Cigarette the Caribbean to the United boats will be made in the first year. with the placement of the control fob and when racing fuel is used. A
Racing, as a research exercise to States. Rum-runner and go-fast They’ll go on sale during the first centre, power-to-weight ratio, and an F1 car helps develop technolo- What they see through that win- separate “Pleasure Key” fob will
develop engineering for use in oth- boats were characterised by a public day of the Miami low hull—make it feel stable at gy that will be used in future cars, dow is more about small, incre- operate the engines at half-power
er boats. deep V-shape, 20- to 50-foot hull International Boat Show running high speeds, say Cigarette repre- we are learning from things in the mental changes than a single, flashy with 91 octane fuel. Cruising range
Project 515 is faster and propor- length, and a renowned capacity February 16-20. sentatives.“It’s about pushing the 515 that we will use in many other leap forward. There’s ever more car- under a calmer setting such as, say
tionally lighter than the preceding for speed. “People think that our buyer is envelope,” chief designer Chad boats down the line. It’s like look- bon fiber: As with autos, the boat’s 75 mph, is 538 miles.
AMG-Cigarette boat, the The bulkier Marauder, which just a Saudi prince because of the Braver says. “In the same way that ing into a window of the future.” impressive speed and incredible BLOOMBERG
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WORLD 9 <

Mueller deflates Trump's claim Pressure mounts on


N FLORIDA SCHOOL SHOOTING N

that Russian role was a hoax FBI director to resign


President acknowledges ‘anti-US campaign’ by ‘bad actor’; Russia calls allegations baseless
DAVID VOREACOS & CHRIS STROHM proof vest” against being fired
17 February or undercut. Such moves now
would look like punishment.

D
onald Trump has Allen and others said that
insisted for more than to avoid being weakened,
a year that Russians Trump should immediately
didn’t try to get him elected. stop publicly doubting the
Special Counsel Robert Russian election meddling.
Mueller put an end to those “It’s still not too late to pivot
claims on Friday, declaring and say, ‘No one is more upset
definitively that they did. about this than I am and here’s
A federal grand jury indict- what I’m going to do about it,”’
ed 13 Russian nationals and a Allen said.
so-called “troll farm” in St But Trump’s political
Petersburg on Friday for a stature is entwined with the
broad campaign to sway the narrative he has built that
2016 election in Trump’s Mueller’s probe is a “witch
favour. The indictment alleges hunt” precipitated by President Donald Trump and first lady Melania Trump visit Igor Nichiporenko, trauma surgeon
that the operation was funded Democrats. “No, Russia did not at Broward Health North Hospital, where doctors treated eight patients and the shooter REUTERS
to the tune of $1.25 million a help me, that I can tell you,”
month by companies con- Trump told supporters at an BERNIE WOODALL after the FBI said in a state- victims and families, and
trolled by a Russian business- Alabama political rally in & ZACHARY FAGENSON ment that a person described deeply regret the additional
man close to the Kremlin. September. “Any Russians in Parkland, Florida, 17 February as someone close to accused pain this causes all those affect-
The indictment means that the audience? I don’t see too gunman Nikolas Cruz, 19, ed by this horrific tragedy,”
Trump can no longer credibly many Russians.” Pressure is mounting on the called an FBI tip line on Wray said in a statement.
cast doubt on alleged Russian Special Counsel Robert Mueller. A federal grand jury indicted 13 Russian nationals REUTERS
He’s also repeatedly cited FBI director to resign after his January 5, weeks before the The FBI has also separately
election meddling. And if he personal assurances from agency admitted it failed to shooting at Marjory Stoneman been criticised by some
was still harbouring dreams of facts back up the allegations ed the US government, with about future indictments. Russian President Vladimir investigate a warning that the Douglas High School, to report Republicans over its investiga-
firing US Special Counsel Russia meddled in the vote. memos and other evidence to Some even saw in the Putin in maintaining his scep- man accused of killing 17 peo- concerns about him. “The tion of allegations of Russian
Robert Mueller or Deputy “Until we see the facts, every- back up the allegations. indictment new doubt about ticism. “Every time he sees me, ple at a Florida high school caller provided information meddling in the 2016 presi-
Attorney General Rod thing else is blather,” Trump seemed to recog- Trump’s presidency. he says, ‘I didn’t do that,”’ possessed a gun and the desire about Cruz’s gun ownership, dential election, heaping fur-
Rosenstein, something many Lavrov said at the Munich nise the changed landscape Rosenstein said the indict- Trump said after a November to kill. desire to kill people, erratic ther scrutiny on the agency led
Republicans already have Security Conference. He cited himself. In a tweet, he ment does not allege “that the meeting with Putin in The disclosure spread behaviour, and disturbing by Wray since President
warned against, such a move comments by Vice President acknowledged a Russian charged conduct altered the Vietnam. “And I believe — I angry disbelief among resi- social media posts, as well as Donald Trump fired James
may be politically impossible. Mike Pence and other US offi- “anti-US campaign,” and outcome of the 2016 election”. really believe — that when he dents of the Miami suburb of the potential of him conduct- Comey last year.
The White House seized on cials who said the allegations in the White House statement Aslund predicted a “deep tells me that, he means it. I Parkland where Wednesday’s ing a school shooting,” it said. Broward County Sheriff
Rosenstein’s declaration that were baseless. he called the country a “bad freeze” on US-Russian rela- think he’s very insulted by it, if massacre unfolded, and led That information should Scott Israel told a news confer-
Friday’s indictment didn’t The indictment reverberat- actor.” He has previously — tions; none of the indicted you want to know the truth.” Florida’s governor Rick Scott have been forwarded to the ence his office had received
allege “that any American had ed from the White House and and frequently — described Russians are in US custody. He can only regain credi- to call for FBI chief Christopher FBI’s Miami field office for fur- about 20 “calls for service” in
any knowledge” of the Russian Congress across foreign policy allegations of Russian Rosenstein said the US would bility if he abandons such pub- Wray to resign. ther investigation, but “we have the last few years regarding
interference, declaring “NO and diplomatic circles. It rep- meddling in the election as request their extradition. lic naivete, said Steve “The FBI’s failure to take determined that these proto- Cruz and would scrutinise all
COLLUSION” in a statement. resents a fundamental shift. “a hoax.” Allen, a former adviser to Sestanovich, a senior fellow for action against this killer is cols were not followed,” it said. of them to see if they were
But the special counsel is still The US intelligence communi- His lawyers complimented President George W Bush and Russian studies at the Council unacceptable,” Scott, a US Attorney General Jeff handled properly.
probing whether Trump or his ty’s assertions that Russia inter- Mueller in statements, though House Intelligence Committee on Foreign Relations and a for- Republican, said in a state- Sessions said he has ordered a But Israel said law enforce-
campaign colluded with the fered in the election, based on they used the past tense — Republicans, said the indict- mer State Department official. ment. “We constantly promote review of FBI procedures fol- ment should not be held
Russians, a person familiar classified evidence never “did” — to describe his work, ment makes it harder for “Trump has got to stop ‘See something, say some- lowing the shooting, carried responsible for Wednesday’s
with the matter said. revealed to the public, was eas- suggesting optimism that the Trump to challenge the FBI, using that ‘he-says-he’s-inno- thing’, and a courageous per- out by a gunman armed with tragedy. “The only one to
Russian Foreign Minister ily dismissed by Trump and his investigation has concluded. Justice Department and intel- cent’ line about Putin,” son did just that to the FBI. an AR-15-style assault rifle and blame for this killing is the
Sergei Lavrov, speaking in allies. Now there are concrete It has not. Rosenstein, at his ligence community, and gives Sestanovich said. And the FBI failed to act.” numerous ammunition car- killer himself,” he said.
Munich on Saturday, said no charges that Russians defraud- news conference, said nothing Rosenstein “sort of a bullet- BLOOMBERG Scott’s comments came tridges. “We have spoken with REUTERS

Facebook, Twitter cannot Winn-Dixie, Tops owners Honeywell CEO


stop poll interference preparing for bankruptcy earned 333 times
SARAH FRIER & GERRIT DE VYNCK
17 February
LAUREN COLEMAN-LOCHNER
& ELIZA RONALDS-HANNON
17 February
the median worker
ANDERS MELIN
Internet companies have a Two US supermarket chains 17 February
long way to go before they’re are readying bankruptcy fil-
capable of stopping any ings, according to people with Honeywell International dis-
foreign meddling in future knowledge of the matter, a closed that CEO Darius
US elections. sign of the mounting pres- Adamczyk’s $16.5 million pay
Changes rolled out so far sures in the grocery industry. package for last year amounts
by Facebook, Twitter and Bi-Lo, the company to about 333 times more than
other technology companies behind the Winn-Dixie chain, what the company’s median
wouldn’t prevent the tactics is preparing for a filing as employee earned, making it
revealed by US Special soon as March, according to the first S&P 100 company to
Counsel Robert Mueller’s the people. The owner of Tops disclose the ratio.
investigation of Russian Friendly Markets, mean- The Morris Plains, New Honeywell CEO Darius
operatives — let alone any while, could potentially seek Jersey-based firm reported Adamczyk BLOOMBERG
new hacks dreamed up by court protection from credi- the ratio in a regulatory
bad actors. tors as soon as this month, filing. Thousands of publicly Pharmaceutical Industries
An indictment issued by people familiar with that sit- traded US businesses disclosed a ratio of 302-to-1,
Mueller said at least 13 uation said. Outside a Winn-Dixie supermarket BLOOMBERG will make their inaugural comparing CEO Kare
Russians engaged in a sophis- Facebook is boosting its security-focused workforce and With low margins and disclosures this year under a Schultz’s $19.4 million annu-
ticated campaign to sway pub- adding transparency to ad purchases REUTERS ample competition, the gro- As part of the upheaval, Bi- ny and its creditors have held mandate of the 2010 Dodd- alised pay to the median
lic opinion around the 2016 cery business has always been Lo is planning to shut almost talks to discuss a possible Frank Act. Adamczyk’s 2017 worker’s $64,081. That same
presidential election. certain audiences, and later election ads. challenging. But now the 200 stores — either before or debt-to-equity swap, as well as compensation, which day, Apollo Global
The narrative laid out by find out how many people Next month, the Federal industry is contending with after its filing — one person alternatives such as asset sales, increased 60 per cent from a Management, reported a 1-
Mueller describes a more they reached. Friday’s indict- Election Commission will also a more aggressive push by said. The business, which Bloomberg reported last year. year earlier, included $1.41 to-1 ratio, with CEO Leon
advanced Russian-backed ment shows how this system consider a proposal to require big-box retailers and went bankrupt in previous Lone Star declined to com- million in salary and a $5.72 Black’s $251,888 compensa-
misinformation effort than can be easily gamed, and high- online political ads to carry Amazon.com, which incarnations in 2005 and ment. A representative for Bi- million cash bonus, accord- tion almost matching the
previously known. Until now, lights the risk that even more the same disclaimers from acquired Whole Foods last 2009, may still find a way to Lo parent company ing to the filing. The median $249,750 for the firm’s medi-
Facebook and Twitter had accounts may not be fake, sponsors as do radio, televi- year to give it a larger brick- restructure its debt out of Southeastern Grocers didn’t employee — half of an employee. Black’s total
been criticised for missing eroding trust in those metrics. sion and print ads. and-mortar presence. The court. Bi-Lo is labouring under immediately respond to a Honeywell’s 131,000 workers didn’t include the $191 mil-
Russian purchases of US elec- The indictment also “We know we have more moves threaten to force older more than $1 billion in debt request for comment. Tops earn more and half make less lion in dividends he received
tion ads through their sys- described how the Russian to do to prevent against future chains to either consolidate following its 2005 buyout by declined to comment. — was paid $50,296 last year. on his shares of the company.
tems. PayPal hadn’t featured operatives used online distri- attacks,” Joel Kaplan, or revamp their operations. Lone Star Funds. The compa- BLOOMBERG On February 12, Teva BLOOMBERG
publicly in the investigations bution and marketing tactics Facebook’s vice president of
until Friday. that were as advanced as any global policy, said in a state- https://telegram.me/AllEpapers
The identity theft detailed legitimate social media cam- ment on Friday. Facebook is
in the indictment is tougher
than the problems these com-
panies have so far tried to
paign — making it difficult for
companies to detect anom-
alies. The operatives worked
working closely with the FBI,
the Department of Homeland
Security and other companies
Athletes need billionaire backer for Olympic glory
solve. Facebook is boosting its in shifts to ensure they made on better ways to protect the DEVON PENDLETON deep-pocketed individuals Street and Phil Mahre. receives almost as much from ing off donations to individual
security-focused workforce posts in accordance with US US and the company’s users, 17 February who’ve made supporting Private donors are partic- individuals donors as it does athletes, but Worthington says
and adding transparency for time zones and circulated lists he added. The FBI has created Olympians into a sort of char- ularly crucial in the US, from corporate sponsors. To she still encourages them to get
who purchases ads. Twitter is of US holidays so the accounts task force on election inter- A few years back, a promising itable hobby — one that comes whose Olympic teams receive court contributors, the foun- to know individual backers.
creating a “transparency cen- posing as citizens could post ference, and Facebook is British heptathlete named with the potential for vicari- no government dollars, dation hosts black-tie galas “It’s a really good chance
tre” on political campaign ad appropriate content, accord- actively working with the Jessica Ennis-Hill was hungry ous Olympic glory. which is “completely oppo- and offers coveted perks in to connect with people who
spending, too. Alphabet’s ing to the indictment. agency, Kaplan also said. for a competitive edge. Billionaire investor Tony site from all our competitors,” exchange for donations, can help them later on, when
YouTube is hiring thousands They also regularly evalu- Ahead of midterm elec- Sidelined from the 2008 Pritzker began funding top says Trisha Worthington, the including a select number of they’ve finished their sporting
of people to vet videos. None ated their content to make sure tions in the US later this year, Olympics, due to injury, skiers through the US Ski & chief development officer of Gold Passes that grant unlim- career. A lot of relationships
of these steps would prevent it appeared authentic, and Twitter said it’s verifying major and forced to take a hiatus Snowboard Foundation more US Ski & Snowboard’s ited access to 250 American ski happen organically with these
foreign agents from using received feedback on party candidates for all from competing, her than a decade ago, after he fundraising arm. With an resorts. For $360,000 per per- supporters,” she says. Pritzker
stolen identities and bank how much text, graphics or statewide and federal elective prospects for the London became casually acquainted endowment of $36 million, son, donors can tag along with and other donors often dou-
accounts to buy divisive ads video to use to appear natural- offices, and major national par- Games were dimming. with a few of its executives. the foundation raises money Team USA to the Olympics or ble as mentors in a pro-
and create misleading posts. ly American. The indictment ty accounts, as a “hedge against Enter Barrie Wells. The While hosting dinners for year-round to help athletes World Championships, as gramme that the foundation
PayPal is a pioneer in has already renewed calls to impersonation”. The company grandson of a world-record them at his Deer Valley, Utah, defray expenses that range Pritzker did at Vancouver. recently started that aims to
online identity and fraud regulate social media. Senator is also improving its anti-spam holder in the pole vault, Wells ski house, he got to know some from airline tickets to virtual- There are close to 70 such VIPs help athletes develop life and
detection. And yet, it’s digital Amy Klobuchar, a Democrat technology to track down net- had made a fortune in insur- of the athletes they brought reality-enhanced training. with the team in Pyeongchang. career skills.
payments service was the from Minnesota, said Mueller’s works of malicious bots target- ance and was looking for ways along and was fascinated by US Ski & Snowboard US tax laws preclude writ- BLOOMBERG
funding vehicle for the Russian investigation shows Russia was ing election-related matters, to give it away. Seeing poten- the athletes’ stories and
operatives’ deceptive cam- using online ads to wage an while monitoring trends and tial, he agreed to pay for new diverse backgrounds.
paigns — making their trans- “information war” against the spikes in conversations about equipment and the travel “Almost all of the athletes Will support
actions appear in social media
companies’ systems like any
US and Congress should pass
new laws to police political
the 2018 elections to spot
potential manipulation.
expenses of her trusted physi- and their families have made
cal therapist. Ennis-Hill, who great sacrifices to compete at a
N Korea for 2020
other purchases in US dollars.
The Russians’ approach
advertising on social media
immediately.
“Tech companies cannot
defeat this novel, shared
went on to win gold in London, world-class level,” says
is one of 18 athletes the phil- Pritzker. “To me, their dedica-
Games, says IOC
raises the question of whether “We do not have time to threat alone,” Twitter said in a anthropist has helped fund. “I tion is so admirable and wor- The International Olympic
other parties have bought — wait. If Congress continues to statement. “The best said to them, I want to be on thy of support. I have seven Committee will support
or will buy — ads using stolen refuse to act, we are aiding approach is to share informa- your journey,” he says. kids. These athletes are great North Korea's participation
identities. It also undermines Russia’s efforts to divide and tion and ideas to increase our As athletes take to the ice role models for mine.” in the 2020 Tokyo Olympics,
the main value of social media influence our nation — inac- collective knowledge, with and slopes in Pyeongchang, Every February, Pritzker IOC President Thomas Bach
business models: That people tion is unacceptable,” the full weight of government chances are that it took them organises an informal gather- told Kyodo News. "We have
are who they say they are. Klobuchar said in an emailed and law enforcement leading more than courage and skill to ing of a couple of dozen friends always applied strict
Facebook and Twitter sell ads statement. She is a co-spon- the charge against threats to get there. Spiralling training he calls “the Icemen”. Each political neutrality, and
through automated systems sor of the Honest Ads Act, our democracy.” costs have led athletes to seek chips in $10,000 for US Ski & then the same we will do
where brands can opt to reach which would regulate online BLOOMBERG funding from all kinds of Snowboard and spends the for Tokyo 2020," Bach was
sources. It’s a need that’s day skiing with former A short track speed skating event at the Pyeongchang 2018 quoted as saying.
increasingly being met by Olympians such as Picabo Winter Olympics REUTERS
https://telegram.me/Estore33
10 DEMOCRACY AT WORK
https://telegram.me/AllEpapers

>
http://www.estore33.com https://telegram.me/TheHindu_Zone
MUMBAI | 18 FEBRUARY 2018 1

DID THEY REALLY SAY THAT?


CHATTERBOX

Matter of feelings CHECKLIST


The Bharatiya Janata Party (BJP) would be well-advised to take the feelings of its
alliance partners into account. They are now sniping at the senior partner quite open-
‘WARNINGS’ ALL ALONG: WHAT CHINA SAID ABOUT INDIA IN PAST SIX MONTHS
ly. Recently, when asked if they had a meeting with the Prime Minister, a Telugu August, 2017, (on Doklam): “It has already been more in India…The embassy can protect the safety of Chinese
Desam Party (TDP) MP quipped that instead, they had a date with Gandhi-ji — he was than a month since the incident, and India is still not citizens and the rightful claims of Chinese enterprises
referring to the Gandhi statue in Parliament which is the meeting point for all only illegally remaining on Chinese territory, it is also and personnel in India...but [we] cannot tolerate any
protests. Recently in an interview to the wire.in, Naresh Gujral cautioned the BJP to repairing roads in the rear, stocking up supplies, illegal behavior.”
be more “diplomatic” in the handling of allies, stating if the BJP wants a coalition in massing a large number of armed personnel. This is December 2017: (on an Indian drone crashing on the
future, they should not ride roughshod over the interests of the allies. Soon after, he certainly not for peace.” Chinese side) “The action of the Indian side violated
was standing to the right of Harsimrat Kaur Badal, as she met the PM, leaving no one August, 2017, (on Doklam): “The Indian side illegally China’s territory and is not conducive to peace and
in any doubt about his closeness to the Badal family. All is not well in the alliance. crossed the boundary on the excuse of ... Chinese road tranquillity in the border area. China is dissatisfied with
building. The reason is ridiculous, vicious and facts are this and has lodged solemn representations with the
All is not well in the UPA clear. You may think about it. If we tolerate India's Indian side. We strongly express our opposition. China’s
But then, all is not well in the United Progressive Alliance (UPA) either. The test will ridiculous logic, then anyone who dislikes the activity at border forces acted professionally and responsibly.”
be in the by elections to one Lok Sabha seat (Araria) and two assembly seats his neighbour's home can break into its neighbour's February, 2018: “The current situation in the Maldives is
(Jahanabad and Bhabua) due on 11 March. The Grand Alliance (GA) of the Rashtriya house. Does that mean when China thinks that large- its internal affairs. It should be properly resolved through
Janata Dal (RJD) and Congress is under a strain as both members of the alliances "Morarji Desai was the last PM to attend the scale construction of infrastructure at the border area of dialogue and consultations by all relevant parties…
have staked their claim over the three seats. The bypolls are a test as they will be held North East Council meeting, no PM had the India is posing a threat, it can enter Indian territory? non-interference in other countries is an important
time to attend it after that. They became very
after Nitish Kumar decamped from the GA to the BJP. As RJD chief Lalu Prasad is busy. But I have come because of you." Wouldn't that be utter chaos?” principle of international relations. The international
in prison, the party is now being run by his son Tejashwi and his standing will also Prime Minister Narendra Modi in Itanagar, Arunachal Pradesh, December 2017: “There have been consecutive cases of community should respect the will of the Maldives and
be tested by the outcome of these elections. In the 2014 general election, the RJD addressing a public meeting, February 15 Chinese citizens being detained, fined or investigated, play a constructive role in the stability and development
had contested the Araria seat alone and defeated the BJP and JDU candidates. charged or even sentenced due to alleged law breaking of Maldives instead of doing the opposite.”

OPINION dialogue with the USA was even more


harmful than maintaining cordial relations
between Iran and Italy during his visit such
as between Iranian companies and Italian
PIYUSH GOYAL with that country. steel firm Danieli (about US $ 4 billion) and
a deal of US $4 billion with another firm
In his 2017 campaign, he criticised rivals related to infrastructure development. Iran

When we work as for their repression of opposition,


criticized the judiciary for violating the
constitution and demanded the
and France also inked a number of agree-
ment related to economic and trade such as
a joint venture between France’s leading

one, we can truly Revolutionary Guard stay out of


politics. In the process he must have
stepped on many toes. Should we expect
car maker PSA and Iran's Khodro to pro-
duce 400,000 vehicles annually by 2020.

transform India a counter-reaction and if so, which


sections will it come from?
The biggest problem seems to be Iran’s
place in the Islamic world and the
The Velayat-e-Faqih or Supreme Leader is challenges to it. But with changes in
an important institution in Iranian political Saudi Arabia, the politics of the Islamic

I
come from Mumbai. You are aware that I have given work
in Mumbai to make foot over-bridges even to the army system and it plays a significant role in the world is also changing. Do you see
where I found that there was a pressing urgency, a catas- decision-making process of the country. prospects of rivalries settling down?
trophe had happened in Mumbai. I didn’t wait for the railway The Supreme Leader has constitutional Iran’s relations with Islamic countries espe-
to work in that normal fashion. I brought in the army to do powers to challenge the decision of the cially with Pakistan, Qatar, the UAE and
that. And for your information, I am already twice gone for executive presidency since he is the number Kuwait will improve in future. But I don’t
inspection of the work of the army wherever we are making one figure in the country. One of the recent think there is any possibility of improve-
these foot over-bridges. examples of this was the removal of the then ment in the relationship between Iran and
And I didn’t give it to the army without, senselessly or I Iranian intelligence minister, Heydar Saudi Arabia.
didn’t give it to the army because my railway officials can’t do Moslehi by the president and his re-
it. I gave it to the army because I thought there was a pressing instatement by Supreme Leader Khamenei What does Hassan Rouhani represent for
need, an urgency which was going beyond the normal speed of on April 17, 2011. India-Iran relations: continuity, change
work. And what did I do? I asked all my zones to send their I think he will successfully complete or a little bit of both?
engineers to see how they are doing this work fast. Because, his tenure despite opposition from differ- Following Prime Minister Narendra Modi’s
after all, army is working on very adverse circumstances on the ent groups like conservatives and hard- visit to Iran on May 22-23, 2016 and the
borders, they have a certain expertise. liners. Any opposition in the future will Rouhani visit to India on February 15-17, 2018,
And I got people from all zones come in to see that work, see come from conservative blocs. the future of India-Iran engagement looks
and learn how to do it faster. And you will be happy to know, No doubt the Islamic Revolutionary reasonably promising as of now. It comes at
this competitive spirit that this generated has literally speed- Guards Corps (IRGC) is Iran’s a time when India is seriously
ed up the work of the railway so much that my general man- most powerful security and contemplating activation of its
ILLUSTRATION: BINAY SINHA
agers of western railway and central railway completed some military organisation, respon- ‘Look West’ policy and bank-
foot over-bridges in less time than the army did in Mumbai. sible for the protection and sur- ing on Iran as a ‘gateway’ and
See, there is a genuine competition how you get a benefit. Mahtab Alam Rizvi tells Aditi Phadnis what the second term means for the Iran President, Hassan vival of the regime. In due provider of corridor to Central
And they forced the Chief Minister to inaugurate it on 26th Rouhani, and how it will affect Iran’s relation with the Islamic countries, India and the US course, the Guards have also Asia and Afghanistan. The vis-
January, because they wanted that inauguration to happen been transformed into leading it sought to revitalise India-

‘Rouhani’s tenure
even before the army foot over-bridges are done. political and economic actors. DR M MAHTAB ALAM Iran bilateral relations which
That is the thinking of this government, how to bring speed, The major political role of the RIZVI have passed through an uncer-
how to bring scale and how to execute projects skillfully. In fact, IRGC started with the election Associate Professor, Nelson tain phase during the last one
one of these suggestions was that Belagavi has a lot of industry, of the reformist presidency like Mandela Centre for Peace and decade taking advantage of the
and I am delighted to hear about innovations that all of you Khatami. The appointment of Conflict Resolution, Jamia lifting of international sanc-
Rostam Qasemi, former head Millia Islamia, New Delhi

will be successful’
have done, the hydraulics, the equipment for faster mainte- tion on Iran which followed
nance, faster revival of accident… trains.. God forbid, there of the Khatam Al-Anbia the nuclear deal between Iran
should not be any accident at any time, but should there be one Complex (a branch of IRGC) as the new and P5+1.
how we can do it faster. Iranian oil minister in August 2011 put on The changing geopolitical scenario in the
I am delighted to hear about the Make in India stories. And fast track, the expansion of the economic region has provided opportunities for both
you will be happy to know, a colleague, Shri Mandaviya from and political role of the IRGC. Qasemi, in countries to strengthen their cooperation in
Gujarat recently had Industry Railway Participation workshop Much has been made of Iran President However, conflicts between moderates a short speech during his farewell cere- various sectors including trade and economy,
in Rajkot, where also there is a lot of engineering industry. So, Mr Hassan Rouhani’s second term as and conservative are not new. This started mony said that the Khatam-ol-Anbiya’s connectivity and combating threats of ter-
I will be happy if you would like to conduct the workshop President. A right-wing conservative in when Akbar Hashemi Rafsanjani became the construction division should replace giant rorism, radicalism, drug trafficking and
where RDSO, railway officials and industry can work together the 1980s, Rouhani contested the polls President of Iran and continued during the foreign corporations and try to clear the cybercrime. PM Modi put it well when he
to showcase your strengths and we can see how you can bring as a moderate in 2013. Now he’s won a presidency of Mohammad Khatami. In an backlog of projects and implement devel- said, the “agenda and scope of our partner-
in more technology to our working and help us in our work. second time. What does his victory interview with CNN on January 7, 1998, opment plans which are long overdue. ship is truly substantial” and held that the
Ultimately, if we have to develop this nation, it can only hap- mean for the politics, economy and Khatami made it clear that his goal was to “outcomes and agreements signed today
pen in a public-private partnership, when you and we work society of Iran? improve Iran’s relations with the US through In order to deliver results, Rouhani [would] open a new chapter in our strategic
together as one. After all, it is not my railway as somebody There are different factions in Iran which a “dialogue of civilisations.” He wanted to must work on Iran’s economic policy. partnership.” During his visit to Tehran, the
commented. I am not taking it in the wrong sense; somebody have dominated political institutions at dif- end the confrontation with the West and But for that he needs to get acceptance long awaited agreements on Chabahar and
said ‘your railway’. It’s not ‘my railway’. I am only a temporary ferent periods — the radicals in the 1980s, improve economic and political relations for Iran from the rest of the world. What Trilateral Transport and Transit Corridor
phenomena over here. You all are permanent (inaudible) on the pragmatists in the 1990s, the moder- between Iran and the west. He argued that, geopolitical moves has Iran made agreement between India, Iran and
railway. It is your railway. It is our railway. And when we work ates in the late 1990s and the early 2000s, “making enemies is not a skill; real skill lies recently to upgrade its global profile - Afghanistan were signed.
together as one, we can truly transform India. and the hardliners led by Ahmadinejad in the ability to neutralise enemies, … And, and somewhat mitigate the effects There is considerable unease about Iran
After all, when Prime Minister talks of Swacchta, he cannot 2005-2013. Moderate Hassan Rouhani this is not incompatible with our principles.” of US sanctions? in the US not just because of the US president
do Swacchta sitting in Delhi. It will have to happen in the became the President of Iran in 2013. He also added that “being mighty does not In order to improve Iran’s economic condi- Trump’s statement on re-imposition of eco-
regional areas, each one of you have to participate in the smart Iranian people believed that he would mean fighting the world at any cost and this tions, he has maintained cordial relations nomic sanctions on Iran. Some groups in the
city project, in the Swaccha Bharat Abhiyan. If we don’t throw change the conservative society of Iran, debate does not mean abandoning the prin- with neighbouring countries including USA are concerned about India’s growing
the garbage on the street, then only India can become clean. improve the economic condition of the ciples and values of society and revolution.” India and European countries. The recent ties with Iran and signing of bilateral and
We can’t say we will throw garbage, but it’s somebody else’s country, suffered badly due to UNSC, EU Khatami apologised for the hostage crisis example is Rouhani’s visit to Italy and trilateral agreements between India, Iran and
responsibility to make it clean. That is how the participative and the USA unilateral sanctions. To some and denounced terrorism in all its forms. France in January 2016. The main motive of Afghanistan on Chabahar.
government… extent, he has succeeded such as nuclear Khatami’s interview to the CNN was not this visit was to promote economic and However, a lot would depend on India’s
And I would urge all of you, whoever have given products to deal between Iran and P5 plus one, Iranian accepted by the conservative groups in trade relations between Iran and European ability to stay the course and deliver on its
offer to the railways, please start supplying to the railways. relations with Asian countries including Iran. Ayatollah Khamenei led the charge countries. Rouhani said that his visit to commitments, as well as the way cross-cur-
Now, you won’t have to run behind railways for payments. All India; and Iran’s relations with European by claiming that the US was seeking to these countries would open a new chapter rents of global and regional geopolitics
those who are suppliers to railways, kindly note, in the next countries. Due to lifting of sanctions, the “bring about instability and insecurity to in Iran-European relations. A number of interact with and influence India-Iran
week or so we have to come out with a notification, you can state of the economy is also improving. the nation.” Conservative group held that a trade and economic agreements were inked bilateral engagement.
actually ask railways to give you a letter of credit, and against
that your bank will lend you money at 9 per cent, 10 per cent.
While all the issues that you mentioned about metro rail-

The art of sprouting pencils


way pushing the Make in India, I am sure you are all aware this
is the first time and the first government of India which has
said that if any Indian manufacturer makes a product, even if
the price of some foreign company will be less, he has an
opportunity to match that and he will be given preference in
the order. That’s the government of India policy now. So, any-
Two young entrepreneurs from Tamil Nadu are giving pencils a makeover. From seeds to recycled paper,
body who makes products which are part of a global tender, they have used it all to produce pencils that are eco-friendly, writes Sneha Bhattacharjee
but if he makes in India, he will have a right to match the

H
price and provide the product made in India. That policy, ow many wooden pencils do you think It was during this assignment, while work-
Make in India Policy, for the first time has been introduced by a 20-ft pine tree could generate? ing with farmers, that they realised how indis-
our government. Actually just 2,500. Over 8 million criminate cutting of trees was the primary rea-
Also, we have brought in (inaudible), so if any country trees are cut per year to produce just pencils. son for the water crisis faced today. “Over 13
and we have a neighboring country which doesn’t allow Such alarming statistics got two young entre- million hectares of forest is lost to deforesta-
Indians to supply to them, but wants to supply all their prod- preneurs working with the farming commu- tion, of which, 36 per cent is for paper manu-
ucts in India. Now, we are being very careful. We are saying in nity in Tamil Nadu, thinking. facturing and 42 per cent for manufacturing
reciprocity, if they don’t allow our companies to sell in their Vishnu Vardhan, founder of Indian timber-based products that constitutes 18-20
country, we will not allow their companies to come and sell Superheroes, and Divya Shetty, his co-founder, billion pencils,” says Vardhan. These statistics
here. If you find any product where your competition is were two Indians working in one of the MNCs were enough to make Vardhan and Shetty pon-
unfair, please let us know, we will not allow those companies in Bengaluru as Instructional Designers. In der over the use of recycled paper to make pen-
to participate. If they don’t allow you to sell in their country, late 2014, when reports of farmer sui- cils. “We decided to mitigate two
their companies will also not be allowed to sell in India. That cides hit the headlines, both Vardhan evils at once and that’s how
is the policy of Mr Modi’s government. and Shetty were extremely upset. Plantcil was born,” says Vardhan.
Somebody spoke about animal corridors. I appreciate the “Divya’s grandfather was a farmer “These pencils are made from
point. There are animal corridors all across the country, and who had committed suicide when she newspapers and 100 per cent recy-
wherever there are defined corridors we have speed restrictions. was only eight,” says Vardhan adding cled and used papers. We collect
We are also trying to create boundary wall. Even in Belagavi, that even years later, things had not newspapers from various schools
kindly see which are the critical areas where we have to make really changed, “Our farmers never in Coimbatore and in exchange,
boundary walls. You will be happy to know, more than Rs 5000 got their due”. provide them with monthly supply
crores we have sanctioned for boundary walls alone all over the Come 2015, they launched Indian THE OTHER of pencils — the kids just love us,” PERISHED Over 8 million trees are cut per year to produce just pencils
country, in the city areas.
And, of course, Karnataka has a serious problem of farmer
Superheroes, a social enterprise
aimed at enabling marginalised
INDIA Vardhan adds. They have multiple
variants, classic black-themed pen- tomatoes and brinjal directly from our farmer respective audiences. They have even formed
suicides also, and which is why I said for sugarcane industry, for organic farmers to make low-cost val- cils with Indian ethnic prints, rain- network. Students can plant the pencil once it is a group for the young children to enable them
example, we will try and support with the new government is ue additions to agricultural produce, bow pencils that make rainbows too short to use and water it. In a few days, a new to learn interesting art and craftwork from
elected, we are going to see that all sugarcane farmers get their and upsell to customers directly, without mid- when sharpened, velvet pencils that are made in plant sprouts to life from it,” says Vardhan used papers, plant trees and grow their own
payment within 14 days. And if there is any backlog of the past, dlemen intervention. “We had two organic bright colors, especially for the younger kids, adding, “we are also working on ecofriendly crops in the school backyard. For the design-
we will try and ensure that within 4 months all that backlog is farmers onboard when we started, now we and are soft to hold and write. There are also pens with zero plastic. er duo however, the journey that has been
cleared like we did in Uttar Pradesh. have over 843 organic farmers, 12 NGOs, and fruit pencils that come in different smells such as With a minimum order of 110 and a fan immensely satisfying and interesting, has
over 200 tribals who work with us. We had an pineapple, cocoa, orange, green apple, etc. following that spans across generations, from only begun. “We are very happy with what we
Edited excerpts from Railway Minister Piyush Goyal’s speech at Belagavi offline model, and in early 2017, we launched That is not all. There are seed pencils that young children to big corporates, Vardhan have done till now. The focus now is to expand
(Belgaum) to the Chamber of Commerce and Industry on the Budget an online portal, www.indianorganic.store,” have plant seeds embedded in them. “We pro- and Shetty have been able to make 100 per in other cities and make this a pan-India
2018-19, February 11 says a proud Vardhan. cure native seeds like chilli, spinach, beans, cent customised pencils and pens for their movement,” says Vardhan.
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Volume XI Number 49
MUMBAI | 18 FEBRUARY 2018

Spotting a true champion


want its cricketers to adhere to. The name generation of cricket lovers is now growing popularity of the great West Indian teams led
that is possibly most synonymous with this up believing this is the norm. Many upcom- by Clive Lloyd and Richards. In fact, none of
behaviour today is Virat Kohli, the current ing players appear to be consciously culti- that admiration came at the cost of domi-
Indian captain. The evidence against Kohli vating this tastelessness. It is as if there is no nance on the field — the West Indies
Winning in cricket matters, but how you win matters, too is well known: His flashing the middle finger other way to be competitive, dominant even, remained unbeaten in a Test series for a
at a hostile crowd at the Sydney Cricket other than abusing fellow players. To be sure, mind-boggling 15-year period from 1980 to
Ground and, more recently, his furious even though Kohli stands in stark contrast to 1995. Their pace battery was lethal and made

O
ne of the most engaging aspects once took a break from opening the innings
of cricket is the banter that often but had to come in soon enough as India lost punching of air and a less-than-subtle send- the likes of Gundappa Vishwanath, Dilip the best batsmen of their generation tremble
takes place between players on the its first two wickets without scoring. Vivian off to a lower-order Proteas batsman in the Vengsarkar, or, more recently, V V S Laxman at the thought of facing them. The same
field. There are many delectable Richards, who was standing at the slips, did fifth one-day International between India and Rahul Dravid, he does mark a natural applied to their batsmen; Richards’ carefree
tales involving both players and commenta- not miss the opportunity to rub it in: “Man, it and South Africa. Often enough it is both progression from Saurav Ganguly’s dogged swagger and Lloyd’s floppy-hat notwith-
tors alike. For instance, Ian Chappell once don’t matter where you come in to bat, the exasperating and puzzling to see Kohli ges- and sometimes pugnacious approach. In standing, they could single-handedly deci-
remarked as a commentator: “The other score is still zero.” ticulate after almost every delivery and with fact, Kohli’s India is closer to Ricky Ponting’s mate any bowling attack on offer. Yet, few
advantage England have when (Phil) Tufnell But, as it’s clear from the vintage of this much viciousness. It is not even the case Australian team than it is to Ganguly’s India. would recall them resorting to abuses in
is bowling is that he isn’t fielding.” Some of selection, this aspect of the game is all but that he does so only on the spur of the But therein lies the rub. Even though order to show dominance.
the better ones were, however, delivered by lost. The deeper cause for concern, however, moment. Perhaps the beginning of the end the great Australian teams of the recent past, Of course, cricket is not just about being
players on the field. Like the Aussie legend is the yobbish behaviour that is slowly taking of the gentleman cricketer is underway. including Steve Waugh’s Invincibles, lay liked; one has to be good enough to compete
Dennis Lillee telling Mike Gatting, “Hell, root among cricketers and this is something Kohli’s aggressive mannerisms are seen down the marker for cricketing calibre and and win. But it is also equally true that crick-
Gatt, move out of the way, I can’t see the that is surely going to erode the deep rooted almost inseparable from India’s growing achievements, yet the grudging respect they et isn’t just about winning; it is almost as
stumps.” Or the time when Sunil Gavaskar traditions, that the guardians of the game dominance in international cricket. A whole enjoyed was in stark contrast to the immense much about how you win.

How to provide electricity for all Getting the better


Last-mile electrification can be made a reality for millions of unserved Indians by leveraging private-sector
expertise with expanding grid infrastructure and government incentives
of tuberculosis
ARVIND LAL ment aims to support patients by a
monthly direct cash or “benefit” transfer

O
n January 13, India completed scheme, and by providing additional
seven years without detecting a nutrition to ensure that they are strong
single case of the wild polio enough to fight TB.
virus. India was once described as one of While the NSP is certainly a crucial
the most challenging places in the world step in the right direction, the success of
to eradicate polio. Yet, with visionary India’s elimination efforts will also
and innovative planning, an intensive depend on the ability to identify gaps in
vaccination campaign and large-scale the system and address them in mis-
community engagement, the nation sion mode. The translation of astute
made astounding progress against the national policies into on-ground action
disease and was declared polio-free in will be critical to tipping the scales in
March 2014. our favour. Systemic impediments will
The key to this success was the need a review if we are to overcome lags
involvement of not just the medical fra- in fund disbursal to state units, ensure
ternity, but also the media, public figures, utilisation of funds is timely and man-
and community leaders. In a mammoth age the procurement of drugs and diag-
effort, over two million vaccine adminis- nostics efficiently.
trators identified vulnerable communi- The programme would benefit from
ties, targeted migrant families and tra- better integrating information technolo-
versed enormous distances to immunise gy and information management sys-
children in the most remote regions. tems in the effort. But technology alone
Social workers and community leaders is not the answer, and until our state-
were involved in countering misconcep- and district-level TB officers are empow-
tions about the vaccine and encouraging ered with the management skills to steer
families to vaccinate their children. this monumental and complex pro-
Outreach efforts were bolstered by the gramme at their levels, our efforts will
“Do Boond Zindagi Ke” campaign that was be found wanting.
widely publicised in the media and The solution to this public health
endorsed by leading public figures such challenge of course neither starts nor
as Amitabh Bachchan, Sachin Tendulkar ends with government responsibility
and Aishwarya Rai. alone. Our efforts need to
The lessons learnt from India bears a be bolstered by a collective
the polio campaign are significant share of response that actively
enormously relevant in the the world’s involves industry, commu-
present battle against tuber- tuberculosis nity leaders and the gener-
In 2017 India enjoyed an energy surplus for the first time. Yet, in three of the country’s five most populous states, nearly half of rural households lack electricity culosis (TB). India bears a burden. In 2016 al public. Private sector
significant share of the alone about providers must be brought
RAJIV J SHAH ic productivity come with the use of appliances, mech- have an enormous impact on social and economic life. world’s TB burden. In 2016 2.79 mn new cases in to fight shoulder-to-
anised tools, and industrial machines, which consume But we also know mini-grids won’t always be the most alone, about 2.79 million of TB were detected shoulder with the public
in the country and

U
nder Prime Minister Narendra Modi’s leadership, progressively higher energy loads. cost-effective solution — especially where grid infra- new cases of TB were sector. This has already
India has set an audacious goal: to end energy Given the essential relationship between energy con- structure is closest and rapidly expanding. detected in the country and over 420,000 been put to test with Private
poverty in India by ensuring 24x7 power for all its sumption and development, all of us — not only gov- In recent years, India’s central government has done over 420,000 people lost people lost their Providers Service Agency
citizens in the next four years. This is no small task. ernments, but also foundations, companies, and the an impressive job extending the grid, and faster than their lives to the disease. lives to the disease (PPSA) models in Mumbai,
Today, nearly 300 million Indians — out of 1.2 billion peo- global community — simply have to be more ambitious expected. In the last five years, transmission lines grew The government has Patna and Mehsana.
ple worldwide — live without access to electricity. As a in our goals. We need to rethink not only how we meas- by nearly 30 per cent, and substations by over 40 per cent. however risen to the challenge TB pos- Through the engagement of private
result, they cannot benefit from the power that lights our ure poverty, but also how we measure progress in a way Meanwhile, renewable generation capacity doubled and es by committing to eliminate the dis- providers treating TB patients in these
homes, brings information to our fingertips, refrigerates that’s more relevant to the aspirations of underserved total capacity exceeded targets for the first time in ease by 2025, five years ahead of the cities, the models were instrumental in
vaccines that protect us from diseases, and lets our chil- people in the 21st century. decades. This helped reduce India’s energy supply deficit targets set by the Sustainable drastically improving case notifications
dren study longer. And, perhaps most importantly, they Second, we must recognise that any set of solutions for so much that in 2017 India enjoyed an energy surplus for Development Goals. The government to the government and treatment
are unable to use electricity as a means to lift themselves electrifying entire countries must be fundamentally the first time. has developed the National Strategic adherence amongst the patients.
out of poverty and enter the modern economy. grounded in deep collaboration between the public sec- But this rapid progress has also exposed the chal- Plan for TB Elimination (NSP), which is Leading industry bodies like the
The 24x7 power for all vision is inspiring, because as tor and the private sector. No country on Earth has built lenges in last-mile distribution. Today only one in five dis- backed by a budget of over ~120 billion, Healthcare Federation of India and
we’ve so often seen, where India leads, the world fol- a widely-accessed and low-cost power system without tribution companies is meeting the government’s target over three years (2017-20), the highest Ficci’s health committee can facilitate
lows. But for either to succeed in transforming energy deeply subsidising it with public investment, or without for controlling technical and commercial losses. And in allocation of resources to fight the dis- private sector participation in TB con-
poverty into economic prosperity, we need to be open to working hand-in-hand with the private sector. A recent three of India’s five most populous states, more than 45 ease so far! trol initiatives and assist with deter-
embracing change — in setting global goals, in partner- Sustainable Energy for All report suggests that closing the per cent of rural households are still unelectrified. Getting The NSP espouses a unique patient- mining how the resources available in
ing with the private sector, and in choosing our gap on energy access will require $1.25 trillion, compared power into homes and businesses at the village level is a centric approach that aims to reach the the private sector may be best utilised
approaches toward achieving universal electrification. to today’s investments of $400 billion. Only through true very different challenge, and ultimately the defining one unreached in the country. Taking its cue to deliver public good.
First, the world’s goals for ending energy poverty partnership will universal energy access be achievable. for ending energy poverty. from the polio drive, the government Celebrities and public figures play a
have to be more ambitious. Today the most common Third, we have to be willing to embrace new That’s why today we see a unique and exciting oppor- has initiated active case-finding cam- pivotal role in building momentum in
baseline metric for whether someone has “access to approaches that can help accelerate progress. For sever- tunity to build on our mini-grid experience by partner- paigns to reach TB patients in remote public health campaigns. Mr Bachchan
modern electricity” is defined as 100 kilowatt-hours al years The Rockefeller Foundation and our non-profit ing with government agencies, distribution companies, areas. These campaigns have already as a TB champion has drawn unprece-
per person per year in urban areas and half of that for subsidiary Smart Power India have worked with a net- and rural energy service companies to develop, test, and screened over 30 million people and dented public attention to the disease.
rural areas — which is barely enough to light a single work of partners and private energy service companies grow new rural electricity distribution franchises. By detected over 15,000 additional TB cas- We need more voices like Tamil cine star
lightbulb for five hours a day and charge a mobile to build rural mini-grids that serve off-grid populations leveraging private-sector expertise with expanding grid es. The NSP also assures quality care to Suriya, educationist Anand Kumar and
phone. It doesn’t measure quality, reliability or pre- for both domestic and productive uses. In Smart Power infrastructure and government incentives, we can bring every TB patient through the provision radio jockey Khurafati Nitin to reinforce
dictability. And it doesn’t enable an underprivileged villages, microenterprises report a 37 per cent increase in down costs and accelerate last-mile electrification for of free diagnosis and treatment in the Mr Bachchan’s call.
household to progress from enjoying important social revenue. Across India, more than 120 mini-grids — the not only tens of thousands, but tens of millions of public and private sector, truly univer- With the world looking at India to lead
benefits of electricity, to realising genuine livelihood largest cohort of mini-grids in India, and by some counts unserved and underserved Indians. salising coverage. the global response to TB, it is time to
gains and poverty reduction. the world — are energising more than 5,000 enterprises I’m confident that the solutions we build togeth- The disease has devastating econom- replicate our success with polio to elim-
Well-planned and targeted electrification can be a in the most energy-starved states, transforming the lives er here in India have the power to light the way for ic and social consequences, especially inate TB from the country.
huge enabler of economic development. But whether it of more than 45,000 Indians. the world. for the poorer sections of society. To pro-
drives real productivity depends on how, and how much, We remain committed to supporting the growth of the tect patients and their families against The writer is Chairman and Managing
power is being consumed. Significant gains in econom- decentralised energy sector in India because they can The writer is President, The Rockefeller Foundation these catastrophic impacts, the govern- Director, Dr Lal Path Labs

> OTHER VIEWS


Govt late in launching bank US shadow on ties with Iran Forest cover inadequate
balance sheet clean-up India must invest with due care Holistic conservation effort needed
Economic recovery will be delayed in An Iranian President’s over- strengthens doubts about The latest edition of the State have been identified in the
seas visit is always global news. their economic viability. of Forest Report for 2017 survey as “forest”. Given that
the absence of governance reforms Hassan Rouhani’s visit to India India’s attempt to bag a shows that India has recorded plantations are artificially cre-
too should make a worldwide potentially lucrative gas-field a marginal increase in its for- ated, it must be asked
In a combative speech in Parliament only days ago, Prime splash, for Iran is trying to is also up against some deter- est cover — between 2015 and whether their inclusion in a
Minister Narendra Modi had pinned the blame for the bad break free from a determined mined Iranian bargaining. 2017, it posted a rise of 0.21 report involving natural for-
loans mess on the Congress. But surely this government has US-Saudi squeeze to end its The negotiations have already per cent in the area that is est growth is justified.
to be blamed, too, for acting late on it even when it was clear intervention in the region’s witnessed bad blood after forested. A closer look, how- The report states that very
at the start of its term in May 2014 that a clean-up of bank bal- hotspots on the side of their New Delhi scaled down pur- ever, throws up a number of dense forest has increased.
ance sheets was going to be one of its primary challenges. adversaries in Syria, Iraq and chases of Iran crude in retali- uncomfortable questions and But this is tempered by the
Since then, the scale of the challenge has grown considerably, Yemen. Iran has offered India ation against stonewalling by discoveries. Less than 25 per revelation that about 24,000
with stressed assets now at well over 11 per cent of total loans two tantalising but juicy car- Iran. The shadow of the US cent of India’s total geo- square kilometres of dense
and threatening to balloon further, with a growing number of rots: a stake in a lucrative gas- also looms large over any graphical area is covered by and very dense forested areas
banks, especially state-owned lenders, reporting losses in the field and access to landlocked Indian attempt to enhance its forests — this is significant also degenerated into non-for-
past quarter, the SBI being the latest. On top of this comes the Afghanistan without going energy security and geopolit- because ensuring that at least est areas on account of defor-
regulatory filing by Punjab National Bank of having detected through Pakistan. Iran’s per- ical ties with Iran. The chal- 33 per cent of the nation’s estation and the usage of for-
alleged fraudulent transactions worth over ~110 billion. mission to India to operate its lenge before PM Modi is not land mass is forested has est land for development
Viewed against this backdrop, and considering the prospect Chabahar port is a teaser. Iran only to escape US disapproval, been the apparent goal of suc- projects. Indeed, the chal-
of higher provisions in the wake of the new rules unveiled by also wants India to set up an but also ensure that he is not cessive governments since lenge is to achieve a balance
the RBI on loan restructuring, the recent recapitalisation of industrial complex next to the persuaded by his anti- 1988. Interestingly, about half among agriculture, industry
~2.11 trillion for state-owned banks may appear inadequate. term, well before the slowdown, state-owned banks would per- port and build a railway line Pakistan antipathy to put the of the dense forest area that and the fragile environment.
This government may take pride in the fact that it has not haps have been better positioned to lend — especially with to its Afghan border. But the taxpayer’s money in unviable India lost since 2003 — more The approach to conserving
kicked the can down the road, like in the past, but equally it signs of a nascent recovery. lack of any interest by PM projects. than 1,000 square kilometres forest must be more holistic.
can be argued that if the clean-up of bank balance sheets had Modi’s business entourage in every year — was compen-
been undertaken in the first two years of this government’s The Indian Express, February 16 the Chabahar projects The Tribune, February 16 sated with plantations, which The Telegraph, February 16
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MUMBAI | 18 FEBRUARY 2018 1

India leases part of Chabahar port Iran seeks investments


ARCHIS MOHAN
New Delhi, 17 February
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from Indian firms
Iran’s economic affairs minister Masoud Karbasian says
I
ndia and Iran on Saturday inked
nine agreements and committed
to early completion of the
govts may discuss preferential trade
Chabahar port. They decided to find
convergence in their views on the issue SUBHAYAN CHAKRABORTY Narendra Modi meets Iranian Among the problems, the
of terrorism and resolved to improve New Delhi, 17 February President Hassan Rouhani for absence of a proper banking
trade and energy ties. bilateral talks. channel between the nations
Apart from these official agreements, Iran has pitched itself as an Addressing business lead- has been highlighted. “Our
four others were signed between indus- untapped market with ers at a meeting organised by banks are being ultra-cau-
try chambers of the two countries on the reformed foreign direct the Federation of Indian tious about what will happen
sidelines. The highlight was Tehran leas- investment (FDI) policies for Chambers of Commerce and if the US imposes some
ing operational control of Shahid Indian firms. This comes at a Industry (Ficci) on Saturday, restrictions on financial
Beheshti port for 18 months to New time when India is planning Karbasian said both govern- transactions,” said Naushad
Delhi, which is the phase one of the to allow investments into Iran ments are aiming to discuss Forbes, co-chairman of
Chabahar port. The Chabahar port, a through rupee. several pacts to boost eco- Forbes Marshall.
mere 90-km from China-controlled “Iran is a stable and desir- nomic relations. This includes, “Korean, German, Japane-
Gwadar port in Pakistan, is of strategic able market for meeting a a treaty signed on Saturday to se and Swiss banks, among
importance sinceitcreatesatransitroute number of basic and liveli- avoid double taxation and fis- others, have established con-
between Iran, Afghanistan and India. hood needs for Indian mer- cal evasion, as well nections and
The two countries also signed agree- chants and we have plans to as some proposed The lack of a their companies
ments for avoiding double taxation, for further liberalise our FDI pol- pacts to support proper banking are doing busi-
cooperation in health and medicine and icy.” Iranian Minister for joint ventures channel and the ness in the coun-
agriculture, and set up a framework for Economic Affairs and between firms looming threat of try. It is high time
cooperation on the issue of anti-dump- Finance, Masoud Karbasian, from both coun- sanctions against India has at least
ing and countervailing duty. said on Saturday. He said the tries and preferen- Tehran by the US a couple of banks
The countries also decided to country had received $24 bil- tial tariff beteen might hold back in Iran, so that an
explore cooperation in defence and lion worth of investments the nations, he Indian investments Indian firm is
maritime sector. A plan was made to over the past two years. said. into Iran able to transact
establish a committee to look into Investment ties between “The business.” he
Rupee-Rial trade, speed up negotia- Iranian President Hassan Rouhani inspecting a guard of honor during his ceremonial reception at the forecourt of the nations have suddenly hit Chabahar port is added.
tions on Indian investments in the Rashtrapati Bhavan in New Delhi on Saturday PHOTO: PTI the spotlight during the ongo- the symbol of multilateral Difficulties in remitting
Farzad B-gas field and Iranian ing three-day visit by Iranian transit cooperation. It is also a capital has meant that even
Pasargadbank to open a branch in cooperation with the regional states, A joint statement that was released indirectly support terrorism should be President Hassan Rouhani. golden opportunity for employees of the State Bank
India. In the context of India-Iran- and we are ready for trilateral and mul- after the Rouhani-Modi meeting said, if condemned.” India is said to be mulling investment for Indian corpo- of India’s Tehran branch have
Afghanistan connectivity, India will tilateral contracts so that Chabahar India supported the Iran nuclear deal, Delivering a lecture later in the day at plans to allow citizens to rates in the field of petro- to be paid salaries routed
assist in construction of Chabahar- port will turn into a strategic route to Iran will echo India’s call for a reform in the Observer Research Foundation, investment in Iran through chemicals.” Karbasian said. through Dubai, a senior
Zahedan rail line, while Iran said it consolidate regional ties.” Iranian the UN Security Council. Indian offi- Rouhani criticised the Donald Trump the national currency, in a bid However, the plan faces industry source said.
would make efforts to include President Hassan Rouhani said at a cials said during the delegation level administration’s threat to re-impose to circumvent the trade sanc- several hurdles. The lack of a Uncompetitive labour and
Chabahar port in the International joint media conference. talks, the issue of Pakistan-abetted ter- sanctions on Iran. He said the US was tions against the middle east- proper banking channel, pro- crippling sanctions have
North-South Transport Corridor, which He said Tehran could meet India’s rorism was raised. The joint statement behaving like a businessman used to ern nation. Currently, Indians cedural complications and added to the difficult busi-
would allow India a shorter transit energy needs, and that Indian compa- didn’t specifically mention Pakistan haggling, but it should realise that hag- can invest using the rupee the looming threat of sanc- ness environment.
route to European markets. nies could partner in Iran’s energy sector, but “urged an immediate end to all sup- gling doesn’t always work. Rouhani also only in Bhutan and Nepal. tions against Tehran by the Investors have also been
“The transit ties between the two desalination of water, solar energy and port and sanctuaries enjoyed by ter- said the ISIS was a “great instrument” The matter is expected to US might hold back Indian put off by the countrywide
countries (India and Iran) will create agricultural projects as well as in con- rorist groups and individuals”. It said for the US to “play” with on the world be on the agenda on Saturday, investments into Iran, trade protests against the ruling
multilateral and regional capacities in struction of IT parks. “States that aid, abet and directly or stage for a “long time”. when Prime Minister experts said. regime in Iran.

India slides 16
places in
globalisation index
VIPUL VIVEK (INDIASPEND.COM) parameters on depth and
17 February breadth. Depth evaluates the
extent to which countries’
As flows of trade and people fell international flows are distrib-
the world over since the 2008 uted globally or more narrowly
global financial crash, India focused, while breadth com-
dropped 16 spots to 78 from 62 pares countries’ international
among 140 countries in 11 years flows to the sizes of their
to 2015 on a globalisation index domestic economies. India
brought out by international ranked 133 on depth and 21 on
logistics company DHL. breadth among 140 countries
The Global Connectedness in 2015.
Index 2016, the fourth since it Helped by its unchanged
was first released in 2011, pre- rank of 133 among 140 coun-
pared by Pankaj Ghemawat tries on depth in the 11 years to
and Steven A. Altman (both 2015, India ranked fifth on
teach management at New depth by change in rank
York University Stern School of between 2005 and 2015. Due to
Business, US), was released on its six-rank drop on breadth
November 15, 2016. from 15 in 2005, it ranked 12th
Measured by international bychangeinrankamongthe16
flows of trade, capital, infor- comparable countries. Trade
mation and people, the index flows are measured by exports
ranked India poorly among a as a share of a country’s gross
group of comparable countries domestic product, capital by
that included its neighbours in foreign direct investment as a
central and south Asia, and share of a country’s gross fixed
BRICSmembers(Brazil,Russia, capital and international stock
China and South Africa). The market investment, informa-
authorsslottedIndiainthecen- tion by international connec-
tral and south Asia group along tivity and people by share of
with Georgia, Turkey, Nepal, international tourists and uni-
Pakistan,Armenia,Uzbekistan, versity students and migrants
Kazakhstan, Bangladesh, as a share of population. On the
Azerbaijan, Kyrgyz Republic four components, India
and Sri Lanka. dropped 13 places to 59 in 2015
India’s 16-place drop over 11 from 46 in 2013 among 140
years to 2015 was the second- countries on trade, five places
worst change among these 16 to 60 from 55 among 72 coun-
countries. Georgia fared the tries on capital, three places to
best by moving up 43 spots to 45 from 42 among 85 countries
56 from 99 between 2005 and on information and one posi-
2015, while Sri Lanka was the tion to 80 from 81 among 102
worst, dropping 19 spots to 86 countries on people.
from 67.
The index measures the InarrangementwithIndiaspen.org

IIM-A completes
placements for
food, agri-biz class
VINAY UMARJI as fast-moving consumer
Ahmedabad, 17 February goods (FMCG), agricultural
inputs and services, food pro-
The Indian Institute of cessing, food and agri con-
Management Ahmedabad sulting, e-commerce,
(IIM-A) wrapped up the final Banking, Financial services
placement process for post and Insurance (BFSI) and
graduate programme in food social development the
and agribusiness management recruiters made offers to a
(PGP-FABM) batch of 2016-18. batch of 46 students in the
PGP-FABM is a residential programme.
two-year full-time sector-spe- While regular recruiters
cific programme designed to included the likes of ADM,
meet the diverse demands of TGI, Pioneering Ventures and
agribusiness, food and allied General Mills, the final place-
sectors through specialised ment process for PGP-FABM
managerial talent. saw first-time recruiters like
Among the total 24 compa- Jain Irrigation, KPMG,
nies participating in the final Grofers, ITC Agri, Walmart,
placements Godrej Group of Livlush and Basix. However, a
Companies and PI Industries couple of students also opted
emerged as top recruiters, recr- out of the placement process
uiting eight and five students. to work in the social and
Ranging from sectors such development sector.

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