Over 900 children separated at US border, ACLU urges judge to take action

The American Civil Liberties Union on Tuesday asked a federal judge to stop the Trump administration’s ongoing separation of families at the US-Mexico border, saying the government had taken more than 900 children from their parents since the policy officially ended last year.

In June 2018, the government said it would end its “zero tolerance” policy of prosecuting those who illegally cross the border and separating them from their children after a public outcry and a legal challenge by the ACLU.

US District Court Judge Dana Sabraw in San Diego ordered the reunification of more than 2,800 migrant children in a court supervised process.

On Tuesday, the ACLU went back to court claiming that the government was still separating families, making exceptions to its pledge to end the practise.

“The government is systematically separating large numbers of families based on minor criminal history, highly dubious allegations of unfitness, and errors in identifying bona fide parent-child relationships.”

The Trump administration has tried to deter record numbers of migrant families arriving at the US-Mexico border seeking refuge from poverty and violence in countries like Guatemala, Honduras and El Salvador.

The government has said it separates families when it suspects the parent has a criminal record or questions the relationship between the adult and the migrant child.

In a more than 200-page motion, the rights group said the administration is “separating young children based on such offences as traffic violations, misdemeanour property damage, and disorderly conduct violations.”

Sometimes separations have occurred based on “the assertion that the parent does not appear to be doing a proper job parenting,” the motion said.

The Department of Justice did not immediately respond to a request for comment on the ACLU motion. But the administration has said the practice is aimed at protecting children who may be in danger.

Given the potential harm to children of being taken from caregivers, the ACLU is seeking to block the government from separating children from parents, regardless of their criminal history.

“The administration must not be allowed to circumvent the court order,” said Lee Gelernt, lead ACLU attorney in the family lawsuit, in a statement, referring to the original ruling from the judge last year, when both sides agreed to enforce it.

The filing said 911 children were separated from their parents - including babies and toddlers - from June 28, 2018 to June 29, 2019.

Immigration and child advocates, Democratic lawmakers and the United Nations have condemned separations.

First Chinese firm to put satellite in orbit plans to ramp up missions

Beijing-based startup iSpace is planning up to eight commercial rocket launches next year, after last week becoming China's first privately funded firm to put a satellite into orbit, its executives told Reuters.

iSpace's success has turned up the heat on the country's other 15-plus startups to develop vehicles capable of delivering satellites into orbit. Since late last year, two other firms have attempted but failed.

China envisions constellations of commercial satellites that can offer services ranging from high-speed internet for aircraft to tracking coal shipments. Reliable, low-cost and frequent deployment by private firms will be key.

"If you don't have a rocket that can go into orbit, that shows that you don't have a product. What business model can you speak of then?" iSpace's Vice President for Finance Huo Jia said in an interview on Tuesday.

"The threshold for orbital launches is extremely high, and 99% of companies will fail," Huo said, predicting only one or two firms in China would be successful in the next five to 10 years.

Clients from Singapore, Italy, Spain, Hong Kong and Sri Lanka, as well as mainland customers, have already either signed up for a spot on iSpace's rockets or expressed interest.

iSpace is open to both private and government clients.

"It's the same for us whether it's a private or a state-owned company," Vice President for Marketing and Communications Yao Bowen said.

The price tag to launch a rocket is 4.5 million euros ($5 million), Yao added.

That compares with the $25 million to $30 million needed for a launch on a Northrop Grumman Innovation Systems Pegasus, a commonly used small rocket.

Since its founding in late 2016, iSpace has completed six rounds of fund-raising totalling over 700 million yuan ($102 million). The last round took place in June.

To help develop the Hyperbola-2, which will also be a reusable rocket, iSpace will "definitely" complete a large round of fund-raising later this year, Huo said, declining to give more details.

Many of iSpace's rivals are designing cheap, disposable boosters. Only one other firm - LinkSpace - aims to build reusable rockets that return to Earth after delivering their payload, much like the Falcon 9 rockets of Elon Musk's SpaceX.

The reusable design of Hyperbola-2 will cut costs by 70%, Huo said.

iSpace estimates a first launch of its reusable rocket in 2021.

The firm was founded by Peng Xiaobo, a former director of research and development at the China Academy of Launch Vehicle Technology, a top state Chinese rocket maker.

iSpace also owns a defence technology firm, corporate registration data published by Beijing Administration for Industry and Commerce shows.

Powell holds his ground as Fed rate cuts may deliver mild jolt to economy

The US Federal Reserve is almost certain to cut interest rates for the first time in more than a decade on Wednesday, delivering a mild jolt to an economy that is facing headwinds from trade disputes and a global slowdown.

The widely expected quarter-percentage-point lowering of borrowing costs, however, is unlikely to assuage US President Donald Trump's increasingly strident demands for the central bank to ease monetary policy.

On Tuesday, Trump again called for a large interest rate cut. The Republican president has blamed the Fed under Chairman Jerome Powell for undercutting his administration's efforts to boost economic growth.

Fed officials hope a modest rate cut will lower the odds of a recession by helping to boost tame inflation at home and offset risks from slowing growth abroad and rising tensions with trading partners like China.

The central bank is expected to leave the door open to further rate cuts should those risks fail to dissipate.

The Fed is scheduled to release its rates decision at 2 p.m. EDT (1800 GMT) at the end of a two-day policy meeting.

It will then be on Powell, who is due to hold a news conference shortly after the release of the policy statement, to explain why the move was necessary, and what comes next.

"How well the Fed communicates its guidance on potential actions to sustain the record-breaking US economic expansion, and in the process stimulate inflation, will greatly determine how the markets react," Sam Bullard, senior economist with Wells Fargo, wrote in a note to investors.

POSSIBLE DISSENT

Critics, including some Goldman Sachs economists, say that cutting rates now will sap the Fed's firepower in the event of an actual recession, and could contribute to market volatility and even asset bubbles.

Indeed, the decision will likely draw a dissent from one or two policymakers who believe that lowering rates as insurance against a sharp downturn that seems less than imminent could set the stage for an unwanted inflationary surge.

With U.S. unemployment near a 50-year low and household spending already strong, Boston Fed President Eric Rosengren and Kansas City Fed President Esther George have signaled they may not be ready to ease policy.

Powell, in explaining the Fed's move, will likely point to a number of factors that could lead to a drop in demand for U.S. goods and services, including a European slowdown, a potentially messy British exit from the European Union and trade-induced weakness in global manufacturing, particularly in China.

And with weak U.S. business investment and inflation that's running well below the Fed's 2% annual target, Powell will likely argue that a rate cut will boost the economy's ability to weather a possible global storm.

"The Fed sees a risk that the U.S. outlook will deteriorate, not a base case," Cornerstone Macro economist Roberto Perli wrote in a research note. Unless the picture deteriorates substantially, the move "should not mark the beginning of a long series of rate cuts."

Interest rate futures traders see about a 75% chance the Fed will cut its overnight benchmark lending rate, or fed funds rate, to a target range of 2.00% to 2.25%, and about a 25% chance of a reduction to a range of 1.75% to 2.00%. Further rate cuts are expected to bring it down to a range of 1.25% to 1.50% by the end of next year.

"Having already promised a rate cut, they can do nothing but move ahead with it," said Drew Matus, who heads global economic and market strategy for MetLife Investment Management. "They seem to be trying to remove fear from the market."

Dieselgate row: German prosecutors charge ex Audi boss Stadler with fraud

German prosecutors said Wednesday they had charged former Audi chief executive Rupert Stadler with fraud over the Volkswagen subsidiary's role in the "dieselgate" emissions cheating scandal.

"Professor Rupert Stadler and three other defendants... are accused of fraud, falsifying certifications and illegal advertising," the prosecutors said, linked to over 430,000 VW, Audi and Porsche cars fitted with "defeat devices" to fool regulators' emissions tests.

US, China negotiators wrap up trade talks after Trump's Twitter tirade

Chinese and US negotiators held their first face-to-face talks on Wednesday since agreeing to a trade war truce last month, but the short meeting in Shanghai was overshadowed by a Twitter tirade from President Donald Trump.

Washington and Beijing have so far hit each other with punitive tariffs covering more than $ 360 billion in two-way trade in a row centred on demands for China to curb the alleged theft of American technology and provide a level playing field to US companies.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin shook hands and exchanged pleasantries with Vice Premier Liu He Wednesday morning.

The group then went behind closed doors for around four hours in the first face-to-face negotiations since Trump agreed to a truce with his Chinese counterpart Xi Jinping in June following a breakdown a month earlier.

The talks were relatively brief and the group emerged later, a little earlier than expected, for a group photo before the US trade officials left for the airport without speaking to reporters.

Lighthizer and Mnuchin arrived in Shanghai on Tuesday and joined Chinese officials for dinner and informal discussions - just as Trump took to Twitter to lambast what he said was a lack of willingness by Beijing to broker a fair deal.

"My team is negotiating with them now, but they always change the deal in the end to their benefit," Trump wrote Tuesday.

This time the US leader said Beijing was supposed to start buying US agricultural products but they have shown "no signs that they are doing so". "That is the problem with China, they just don't come through," he added.

Trump had previously accused China of reneging on its commitments when previous talks broke down in May.

Analysts said his remarks would do little to ease the already-tense relationship between Washington and Beijing.

"Whatever shred of optimism markets had about the ongoing trade negotiations were dealt as a severe blow when President Trump flew off the handle again," said Stephen Innes, managing partner at VM Markets Singapore.

"(The tweets show) Trump seems eager to get a deal, that shows his weakness," said Shanghai-based professor Shen Dingli.

A commentary in the Communist Party mouthpiece People's Daily on Wednesday, while not mentioning Trump by name, complained that as the talks started, "the drums of some Americans struck again on the side, disturbing the main melody".

Days before the Shanghai meeting, Trump threatened to pull recognition of China's developing nation status at the World Trade Organization, which Beijing called "arrogance".

Expectations were already low before the talks, although and analysts predicted that little of substance would be announced.

"The short duration of the current meeting to me suggests that this is exploratory," said J Michael Cole, a Taipei-based senior fellow with the Global Taiwan Institute in Washington.

"It signals that no major breakthroughs are expected and that the expectations of achievements are modest at best." Officials on both sides were keeping a low profile throughout their Shanghai trip.

US trade negotiators entered and left their hotel on Shanghai's waterfront through side doors without going through public areas, and did not stop to speak to the press or show their faces.

Trump said last week he believed Beijing was hoping to delay a deal until after the US presidential election in November 2020, saying China wanted to see if a Democratic opponent wins the vote so it could "continue to rip off the USA".

"He (Trump) can't afford politically to step up and say 'I made a great deal with China' when it's not a great deal," said Derek M Scissors, resident scholar at the American Enterprise Institute.

"So the most likely outcome is we get nothing until the election." But the trade war is taking its toll on both sides.

In a report published Wednesday in official news agency Xinhua, The Political Bureau of China's Central Committee warned of "new risks and increasing downward pressure" on the Chinese economy.

Hong Kong crisis: Pro-democracy protesters face court after rioting charges

Dozens of Hong Kong pro-democracy protesters appeared in court Wednesday after being charged with rioting, setting the stage for further unrest in a weeks-long crisis that has rocked the global financial hub.

The announcement on Tuesday night that 44 people had been charged with rioting -- an offence that carries a jail term of up to 10 years -- immediately triggered another round of clashes between police and protesters.

Supporters continued to voice their outrage as they stood for hours on Wednesday outside court, braving heavy winds and rain, as the accused rioters appeared before a judge.

"Release the righteous... no rioters, only tyranny... reclaim Hong Kong, the revolution of our times," the supporters chanted at various times throughout the day.

The protesters were generally calm as they took turns to appear in front of the judge, who formally read the charges and granted them bail.

The range of their professions reflected the wide support across Hong Kong society for the pro-democracy movement.

They included a teacher, a nurse, an airline pilot, a barber, a chef, an electrician, a construction worker and unemployed people, according to their charge sheets.

Semi-autonomous Hong Kong has endured more than seven weeks of unrest that began with a government bid to introduce a law that would have allowed extraditions to mainland China.

The protests evolved into a movement for deeper democratic reforms and an end to eroding freedoms, in the most significant challenge to Beijing's rule since the city's handover from Britain in 1997.

In the latest confrontation, police used pepper spray and batons against hundreds of protesters who had gathered outside a police station in solidarity with those who had just been charged.

Footage broadcast live on television showed an officer aiming a shotgun at protesters who were throwing objects at him.

The previous two weekends had seen a surge in the level of violence used by both protesters and police, who repeatedly fired rubber bullets and tear gas to disperse projectile-throwing crowds.

A mob of pro-government thugs also attacked protesters, putting 45 people in hospital.

The 44 protesters were charged for their alleged role in running battles between police and protesters in a well-heeled residential neighbourhood on the main island on Sunday.

The move to charge protesters with rioting came a day after Beijing publicly threw its weight behind Hong Kong's leader Carrie Lam and the police, saying violent protesters must be swiftly punished.

"No civilised society or rule of law society will tolerate rampant violence," Yang Guang, spokesman for the cabinet-level Hong Kong and Macau Affairs Office, told reporters.

But while Beijing has issued increasingly shrill condemnations of the protests, it has left the city's government to deal with the situation.

Lam has shown no sign of backing down beyond agreeing to suspend the extradition bill, and has made few public appearances.

Amnesty International said the charging of the 44 protesters with rioting was aimed at intimidating others from taking part in future pro-democracy rallies.

"By using such vague charges against pro-democracy protesters, the Hong Kong authorities seem intent on sending a chilling warning to anyone considering taking part in future protests," the global human rights group's Hong Kong director, Man-kei Tam, said in a statement.

But protesters have vowed to keep their campaign going until their core demands are met.

They include Lam's resignation, an independent inquiry into police tactics, an amnesty for those arrested, a permanent withdrawal of the bill and the right to elect their leaders.

Under the terms of the 1997 handover deal from British to Chinese rule, Hong Kong enjoys rights and liberties unseen on the mainland, including an independent judiciary and freedom of speech.

But many say those rights are being curtailed, citing the disappearance into mainland custody of dissident booksellers, the disqualification of prominent politicians and the jailing of pro-democracy protest leaders.

Public anger has been compounded by rising inequality, the high costs of living and the perception that the city's distinct language and culture are being threatened by ever closer integration with the Chinese mainland.

Australia adds India to working holiday visa prog to curb labour shortages

Australia plans to expand the 'Working Holiday Maker' visa programme to over a dozen countries, including India, to recruit workers to regional areas to solve the labour shortages particularly on farms, Immigration Minister David Coleman said on Wednesday.

The Australian government is in discussions to extend the scheme to include backpackers from 13 countries to find workers wanted by regional businesses to work on farms.

The Australian Government's 'Working Holiday Maker Programme', which includes the 'Working Holiday visa and the Work and Holiday visa', is a cultural exchange programme which enables young travellers to have an extended holiday and earn money through short-term employment.

Apart from India, other nations which were being targeted by Australia to expand the work and holiday visa were from Brazil, Mexico, the Philippines, Switzerland, Fiji, Solomon Islands, Croatia, Latvia, Lithuania, Andorra, Monaco and Mongolia.

Coleman said the government was working on expanding work and holiday visa conditions in an effort to recruit workers to regional areas, according to a report by the Australian Broadcasting Corporation.

Under the current programme that allowed backpackers to work while they stay was witnessing a decline thus creating workers shortage issue in regional parts of the country.

About 150,000 people were in Australia on a working holiday visa in March, but the programme has actually shrunk over the past five years.

Coleman said the changes were designed to resolve labour shortages in regional areas, particularly on farms.

"We know that working holiday-makers travel further into regional areas than most other international visitors," he said, adding "They also spend substantial amounts, helping to boost regional economies."

While countries in the uncapped 417 visa scheme are typical backpacker nations such as the UK, Canada, Germany and Sweden, the 462 visa (known as "work and holiday") scheme includes more developing countries like Singapore, Thailand, Turkey, Vietnam, Indonesia, China and Bangladesh.

In a recently released video, Australia has advertised itself as "the best workplace in the world" for international markets.

Coleman countered suggestions that the scheme was becoming a channel for low-skill migrant workers.

"Work and holiday applicants must meet minimum requirements before a visa can be granted, including having a functional level of English and they must hold or be studying towards tertiary qualifications,'' he said.

Last year, Prime Minister Scott Morrison said his government had not ruled out an agricultural visa in a bid to attract more backpackers to work on farms.

Changes to the backpacker visa have been welcomed by farmers but have concerned some academics.

Currently, Australia offers the two types of Work and Holiday programme visa under Subclass 417 and subclass 462 with Indian passport holders not eligible for both the categories.

Over 1,21,000 mt of plastic waste being slyly imported into India: Report

More than 1,21,000 metric tonne (MT) of plastic waste is being "slyly" imported in India by companies and recyclers, which is adversely affecting the efforts to curtail plastic pollution, according to a study.

The study, conducted by NGO Pandit Deendayal Upadhyay Smriti Manch (PDUSM), stated that 55,000 metric tonne of plastic waste is being imported in India from Pakistan and Bangladesh.

"Over 55,000 MT plastic waste is imported from Pakistan and Bangladesh combined. The import is taking place from more than 25 countries which include the middle east, Europe and the USA," it said.

"The Indian recyclers and plastic companies are slyly importing used PET plastic bottles in the form of flakes and lumps, while tons of plastic waste generated every day remain untreated and dumped into landfills and oceans," it added.

The data is based on a study conducted between April 2018 and February 2019.

According to the study, more than 19,000 metric tonne of plastic waste is being imported in Delhi.

"Recyclers are importing plastic flakes and lumps, since it is cheaper compare to collecting and recycling locally produced waste," it said.

Expressing concern over the growing import, the study said it may hamper the efforts to control plastic pollution.

"If recyclers are not stopped from importing recycled waste, then how will we encourage recycling industry to collect and recycle locally produced waste. The import is affecting government's efforts in curtailing plastic pollution and also doing a disservice to our environment," it said.

SC reserves verdict on whether to send EWS quota plea to Constitution bench

The Supreme Court on Wednesday reserved verdict on whether to refer to a Constitution bench a batch of pleas challenging Centre's decision to grant 10 per cent reservation in jobs and education to economically weaker section (EWS).

Attorney General K K Venugopal told a bench headed by Justice Bobde that the Constitution (103 amendment) Act, 2019 granting 10 per cent reservation to EWS is intended to uplift around 200 million people who are still below the poverty line.

The bench, also comprising Justices R Subhash Reddy and BR Gavai, was hearing a batch of pleas challenging the validity of the Act on the ground that economic criteria cannot be the sole basis for granting reservation.

Delhi power regulator reduces fixed electric charges, raises energy rates

Delhi's power regulator announced on Wednesday the new electricity tariff for 2019-20, significantly bringing down fixed charges while raising energy charges.

Delhi Electricity Regularity Commission (DERC) chairman Justice (retired) S S Chauhan said the new rates would be applicable from August 1.

As per the new rates, the fixed charges up to 2 kilowatts (kW) has been reduced from Rs 125 to Rs 20, while the charges above 2 kW but less than 5 kW has been slashed from RS 140 to Rs 50.

The fixed charges for more than 5 kW and less than 15 kW has been reduced from RS 175 to RS 100, Chauhan said.

The energy charges in the domestic category for those who are consuming above 1,200 units have been raised from the existing Rs 7.75 per unit to Rs 8 per unit.

All domestic category consumers will have savings from Rs 105 up to Rs 750 per month after the implementation of the new rates, DERC officials said.

In the non-domestic category, which is above 3 kilo volts-amperes(kVA), the existing rate of Rs 8 per unit has been raised to Rs 8.50 per unit.

For low-end shopkeepers consuming up to 3 KVA, a new sub-category has been created and they will be charged at rate of Rs 6 per kW instead of Rs 8.50 kW.

"Little changes have been made in fixed charges and energy charges. Tariff has been balanced in such a manner to fulfill needs of each and every member of the society," Chauhan said.

In order to promote pollution-free transportation, tariff for charging stations of e-rickshaws and other electric vehicles has also been reduced, the DERC chairman added.

Govt hikes subsidy for non-urea fertilisers, to cost Rs 22,875 cr in FY20

The government on Wednesday hiked the subsidy on non-urea fertilisers to make available farm nutrients at affordable prices to farmers, a move that would cost the exchequer Rs 22,875.50 crore in this fiscal.

A decision in this regard was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

"The CCEA approves NBS rates for Phosphatic and Potassic (P&K) fertilizers for the year 2019-20; expected expenditure during 2019-20 to be Rs 22,875.50 crore," Information and Broadcasting Minister Prakash Javadekar told media after the meeting.

The subsidy for Nitrogen has been fixed at Rs 18.90 per kg, Phosphorous at Rs 15.11 per kg, Potash at Rs 11.12 per kg and Sulphur at Rs 3.56 per kg for the current fiscal, he said.

This will help in promoting balanced use of fertilisers, the minister added.

In 2010, the government had launched the nutrient-based The government on Wednesday hiked the subsidy on non-urea fertilisers to make available farm nutrients at affordable prices to farmers, a move that would cost the exchequer Rs 22,875.50 crore in this fiscal.

A decision in this regard was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

"The CCEA approves NBS rates for Phosphatic and Potassic (P&K) fertilizers for the year 2019-20; expected expenditure during 2019-20 to be Rs 22,875.50 crore," Information and Broadcasting Minister Prakash Javadekar told media after the meeting.

The subsidy for Nitrogen has been fixed at Rs 18.90 per kg, Phosphorous at Rs 15.11 per kg, Potash at Rs 11.12 per kg and Sulphur at Rs 3.56 per kg for the current fiscal, he said.

This will help in promoting balanced use of fertilisers, the minister added.

In 2010, the government had launched the nutrient-based subsidy (NBS) programme under which a fixed amount of subsidy, decided on an annual basis, is provided on each grade of subsidised phosphatic and potassic (P&K) fertilizers, except for urea, based on the nutrient content present in them.

Retail prices of non-urea fertilisers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP) and NPK are decontrolled and are determined by manufacturers, while Centre gives a fixed subsidy each year. (NBS) programme under which a fixed amount of subsidy, decided on an annual basis, is provided on each grade of subsidised phosphatic and potassic (P&K) fertilizers, except for urea, based on the nutrient content present in them.

Retail prices of non-urea fertilisers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MoP) and NPK are decontrolled and are determined by manufacturers, while Centre gives a fixed subsidy each year.

Allahabad Bank reports Q1 net profit of Rs 128 cr on good credit growth

Allahabad Bank has reported a net profit of Rs 128 crore in Q1FY20, against a loss of Rs 1,944 crore in the same period of the last financial year.

According to SS Mallikarjuna Rao, MD and CEO of Allahabad Bank, good credit growth and lower provisioning helped the bank book profit. In February this year, the bank came out of RBI's prompt corrective action (PCA) framework, which had imposed restrictions on certain categories of lending.

The bank registered a year-on-year credit growth of 8.75 per cent in the last quarter. The total provisions of the bank in the last quarter stood at about Rs 732 crore, against Rs 2,774 crore in the same period last year. According to Rao, the bank has already provided for around 95 per cent for all accounts referred to NCLT, with a total exposure of about Rs 18,000 crore.

The gross non-performing assets (NPA) of the bank, as a percentage of its total lending, stood at 17.43 per cent in the last quarter, against 15.97 per cent in the same period last year. The net NPA stood at 5.71 per cent in the last quarter, against 7.32 per cent in the same period last year.

In the last financial year, the bank recorded fresh slippages worth Rs 2,986 crore, with agriculture and MSME sectors accounting for a large share. Rao said the bank owes about Rs 1,500-1,600 crore repayment from states on account of debt waiver schemes. A major share is from the government of Madhya Pradesh, which so far has released only about 10 per cent of funds. The bank is expecting repayment of about Rs 1,170 crore by the Madhya Pradesh government alone in the second quarter.

In view of the higher slippages in the agriculture sector, the bank is reassessing the portfolio, said Rao.

Cabinet okays bill to ease compliance for chit funds, protect subscribers

The Cabinet on Wednesday approved a bill that seeks to reduce the compliance burden of the registered chit funds industry and protect the interest of subscribers, Union minister Prakash Javadekar here.

The Cabinet gave approval for the introduction of Chit Funds (Amendment) Bill, 2019, in Parliament, the Information and Broadcasting Minister told reporters after the meeting.

He said the bill is aimed at fulfilling the objectives of reducing the regulatory or compliance burden of the registered chit funds industry as well as protecting the interest of subscribers.

The government had earlier in 2018 introduced a bill to regulate the chit fund industry but it lapsed, the minister said.

The bill was introduced in the Lok Sabha in March 2018 and later referred to a standing committee on finance for scrutiny.

The parliamentary panel had suggested the government to incorporate element of insurance coverage for subscribers, among others.

It also noted that mobilising short-term funds to meet various personal needs has been a chronic problem faced by the general public in developing countries like India.

N Chandrasekaran re-appointed as director of Tata Motors with 98.65% votes

Tata Motors on Tuesday said its shareholders have approved re-appointment of N Chandrasekaran as a director on the company's board.

He is chairman of Tata Motors.

In a regulatory filing, the company also said Nasser Munjee, Vinesh Kumar Jairath and Falguni Nayar have ceased to be independent directors upon completion of their terms.

Shareholders approved the re-appointment of Chandrasekaran with 98.65 per cent votes.

Addressing shareholders at the annual general meeting on Tuesday, Chandrasekaran said the company is looking for partnerships for Jaguar Land Rover to lessen the financial burden.

He, however, said the automobile sector is such that a company cannot shut the cash tap as the business demands continuous investment in product and technology development.

He said that more than the final outcome of Brexit, it's the continuing uncertainty that is hurting JLR in its home market of England and continental Europe, which is the largest source market for the millions of parts that JLR procures annually.

Sun Pharma aims to clock 'low-to-mid teens' growth in revenues in FY20

Drug major Sun Pharmaceutical Industries is gradually ramping up its speciality business across global markets as it aims to clock "low-to-mid teens" growth in consolidated revenues in the current fiscal.

Addressing shareholders in the company's annual report for 2018-19, Sun Pharma Managing Director Dilip Shanghvi said the company is focused at growing each of its business verticals faster than the market in which it operates.

"Our consistent focus is on growing each of our businesses faster than the market in which they operate. Our global specialty initiatives will supplement this objective as an additional growth engine," Shanghvi said.

The company is targeting key ailments like psoriasis to gradually ramp up its global specialty business, he said adding that Sun Pharma would continue to invest in branding and promotion of its various specialty products.

Besides, R&D investments for funding clinical trials of some of the specialty products are also likely to continue in future, Shanghvi noted.

On business outlook for the current fiscal, he said: "For 2019-20, we expect our consolidated revenues to grow by low-to-mid teens, while R&D investments are estimated at 8-9 per cent of sales."

The Mumbai-based drug firm had reported consolidated revenue from operations at Rs 28,686.28 crore for the fiscal year ended March 2019.

Shanghvi said the company would also continue to invest in the generics business with a focus on developing differentiated complex products and building a product pipeline across markets.

"Our strong positioning in the global generics space will ensure that we remain an important player in the generics industry," he added.

Shanghvi said the company will also continue to focus on optimising its costs, given the tough phase that the global generics industry is passing through.

"We strive to optimally utilise our resources with greater involvement of people to make the company more efficient," he added.

IOC reports 47% drop in Q1 net profit after refinery margins slump

State-owned Indian Oil Corp (IOC) on Wednesday reported a 47 per cent drop in its first quarter net profit after refinery margins slumped.

IOC reported a consolidated net profit of Rs 3,737.50 crore, or Rs 4.07 per share in April-June quarter this year, as compared to a net profit of Rs 7,092.42 crore, or Rs 7.48 a share, a year ago, the company said in a regulatory filing.

Revenue was almost flat at Rs 1.53 lakh crore in the first quarter of the 2019-20 fiscal year.

The company earned $4.69 on turning every barrel of crude oil into fuel in April-June this financial year, down from $10.21 per barrel average gross refining margin in the corresponding quarter of the previous fiscal year.

IOC said it had a foreign exchange gain of Rs 91.75 crore in April-June 2019, as compared to Rs 1,804.85 crore forex loss in the previous year.

'Food doesn't have religion': Zomato after customer seeks non-Muslim rider

Food delivery company Zomato is winning the internet after it refused on Wednesday to resolve a customer's complaint about being assigned a Muslim delivery executive for his food order.

"Food doesn't have a religion. It is a religion," the company tweeted in response to the customer's request for change of the rider. 

On Tuesday night, a man tweeted about cancelling his order placed on Zomato as the designated rider was a "non-Hindu".

"Just cancelled an order on @ZomatoIN they allocated a non hindu rider for my food they said they can't change rider and can't refund on cancellation I said you can't force me to take a delivery I don't want don't refund just cancel," Amit Shukla, a resident of Jabalpur in Madhya Pradesh, tweeted.

In a series of tweets, he also shared screenshots of his conversation with Zomato's customer care, saying he would take up the issue with his lawyers.

 

Zomato India

✔

@ZomatoIN

 Food doesn’t have a religion. It is a religion. https://twitter.com/NaMo_SARKAAR/status/1156217070247268352 …

पं अमित शुक्ल

@NaMo_SARKAAR

Just cancelled an order on @ZomatoIN they allocated a non hindu rider for my food they said they can't change rider and can't refund on cancellation I said you can't force me to take a delivery I don't want don't refund just cancel

37.3K

10:30 AM - Jul 31, 2019

Twitter Ads info and privacy

17.5K people are talking about this

 

 The company stood its ground and refused to change the delivery executive. 

Zomato founder Deepinder Goyal echoed his company's stand with a firm message. "We are proud of the idea of India - and the diversity of our esteemed customers and partners. We aren't sorry to lose any business that comes in the way of our values," he tweeted.

Zomato's response won it many admirers. 

"Respect. I love your app. Thank you for giving me a reason to admire the company behind it," former Jammu and Kashmir Chief Minister Omar Abdullah tweeted.

Former Election Commissioner S Y Quraishi tweeted: "Salute Deepinder Goyal! You are the real face of India! Proud of you."

Goyal had in an internal message to his team at Zomato applauded the customer team for "upholding our values and not discriminate on basis of caste or religion for sake of growth (or customer satisfaction)".

Sources said he told his team that they should not succumb to any demands of a customer, partner, or even an employee on racial grounds or grounds of any form of diversity.

Shukla, the customer who cancelled the order, identifies himself as Pandit Amit Shukla and has the username @NaMo_SARKAAR. He tweeted on Tuesday evening that he had cancelled his order after a delivery executive called Faiyaz was assigned to deliver his food. Shukla shared the order status with a map from a locality in Jabalpur.

He also shared a screenshot of the app's chat support, through which he requested for a different delivery executive. When asked for a reason for the change, Shukla replied: "We have Shravan and I don't need a delivery from a Muslim fellow."

The customer care executive responded that cancelling the order would cost him Rs 237, and then said: "At Zomato, we don't discriminate on basis of riders, I hope you understand."

Shukla tweeted that he cancelled the order without refund, and said that Zomato was "forcing us to take deliveries from people we don't want".

He claimed he was uninstalling the app as the company was not cooperating and he would discuss the matter with his lawyers.

His tweets received angry responses from several users with one asking Shukla if he had ensured that the person who cooked his food was a Hindu, while another pointed out that Shukla's vehicles run on "Muslim fuel" -- alluding to most of the oil India buys coming from Gulf nations. 

ED quizzes Farooq Abdullah in money fraud case with JK Cricket Association

The ED on Wednesday questioned former Jammu and Kashmir chief minister Farooq Abdullah in connection with a money laundering case related to alleged financial irregularities in the state's cricket association, officials said.

They said Abdullah appeared before the central agency at its Chandigarh office and his statement was being recorded under the Prevention of Money Laundering Act (PMLA).

The Enforcement Directorate (ED) had filed the money laundering case after taking cognisance of a CBI FIR.

CCD names S V Ranganath as interim chairman; Nitin Bagmane as interim COO

Coffee Day Enterprises on Wednesday named independent director S V Ranganath as the interim chairman of the company to replace its founder V G Siddhartha, who has been confirmed dead days after he went missing. The company board, wherein Siddhartha's wife Malavika Hegde is also a director, met on Wednesday to put in place a working structure of the company.

The board appointed "S V Ranganath as the interim chairman of the board" and "Nitin Bagmane as an interim chief operating officer (COO) of the company," Coffee Day Enterprises, which runs India's biggest coffee chain CCD, said in a regulatory filing.

It also constituted an executive committee comprising Ranganath, COO Nitin Bagmane and CFO R Ram Mohan "to exercise the powers previously vested with the Chief Executive Officer of the company and the Administrative Committee constituted by the Board in 2015," it said.

"The board will, in due course, prepare a detailed charter of authorities vested in the Executive Committee and approve the same," the filing said.

The Executive Committee will explore opportunities to deleverage the Coffee Day Group, it said.

The body of Siddhartha, who had been missing since Monday evening, was found on Wednesday in the Netravati river in Dakshina Kannada district of Karnataka after 36 hours of intense search, officials said.

Siddhartha purportedly wrote a letter indicating he was anxious about pressure from banks, investors and the tax authorities before he went missing.

"The board took cognizance of statements in the purported letter from V G Siddhartha relating to financial transactions outside the knowledge of the senior management, auditors and the board.

"While the authenticity of the letter is unverified and it is unclear whether these statements pertain to the company or the personal holdings of V G Siddhartha, the board took serious note of the same and resolved to thoroughly investigate this matter," the filing said.

The board expressed its condolences to Siddhartha's family and resolved to lend its support and expressed full confidence in the company's management team.

"The board also took note of a message from Malavika Hegde expressing support and trust in the company's professional team and the common effort to look after the interest of the employees and all other stakeholders," it said. "The board remains deeply committed to safeguarding the interests of all stakeholders, including investors, lenders, employees and customers." The company said the Audit Committee and Executive Committee will engage in discussions with the statutory auditors of the company and such other advisors as may be necessary with a view to recommend appropriate next steps to the board at its forthcoming meeting on August 8.

The board has also appointed Cyril Amarchand Mangaldas as its legal counsel to advise on these matters.

Apollo Tyres' Q1 consolidated net profit dips 44% to Rs 142 crore

Apollo Tyres on Wednesday reported 43.77 per cent dip in consolidated net profit at Rs 141.6 crore for the June quarter of 2019-20.

The company had posted a net profit of Rs 251.84 crore for the same period of previous fiscal.

Total income rose marginally to Rs 4,358.78 crore during April-June 2019 as compared with Rs 4,328.6 crore in the year-ago period, Apollo Tyres said in a statement.

"While the demand from automakers remained subdued, there was growth in the replacement market segment," Apollo Tyres Chairman Onkar S Kanwar said.

"Moving ahead, I am hopeful of the markets recovering and the sales bouncing back around the festive season in India. In Europe, we are performing better than the industry, which is likely to continue going forward as well," he added.

Speaking at the company's annual general meeting (AGM), Kanwar said the company has invested close to Rs 4,000 crore in a new facility in Hungary and has also earmarked Rs 3,800 crore for a greenfield project in Andhra Pradesh.

The company is also committed to upgrading its existing manufacturing plant in Chennai, expanding truck tyre radial production to 12,000 units a day from earlier 6,000 units, he added.

"While in India, we are achieving leadership position in multiple segments, we are confident of gaining traction in Europe in the coming years as we start catering to the original equipment manufacturers (OEMs) from the Hungary plant," Kanwar said.

Apollo is the only Indian company which supplies to various OEMs in Europe like Volkswagen, Ford and Audi, he said adding that the strategy of replicating the company's success with OEMs in India will go hand in hand with increasing its market share in the replacement markets.

Apollo shares were trading 3.74 per cent up at Rs 155.25 apiece on the BSE

In victory for govt, Rajya Sabha passes Bill to ban instant triple talaq

With the Rajya Sabha passing the Bill on Tuesday evening, Parliament has approved a law to make instant triple talaq a criminal offence. Under the proposed law, which not only the opposition but two of Bharatiya Janata Party (BJP)’s allies opposed, offenders will get a three-year jail term.

The highlight of the day, however, was the Narendra Modi government managing the numbers in support of the Bill in the Rajya Sabha. The government would have suffered an embarrassing defeat if all political parties who opposed the Bill had walked the talk.

The challenge before the BJP’s floor strategists was more difficult than it had faced last week when the Rajya Sabha had taken up a Bill to amend the Right to Information (RTI) law. Unlike the earlier instance, its allies the Janata Dal (United) and the AIADMK opposed the Triple Talaq Bill. Parties that had either supported the government or walked out during the debate on the RTI Bill, particularly the YSR Congress and the Telangana Rashtra Samiti, also opposed the Bill.

On paper, as many as 136 members should have opposed the Bill in a House of 241 members. The Bill was passed with 99 to 84 votes.

With Home Minister Amit Shah present in the House, BJP’s Piyush Goyal, Bhupender Yadav, CM Ramesh and Pralhad Joshi reached out to opposition parties and MPs. Some were convinced to absent themselves, others to stage a walkout. The AIADMK and JD(U) members walked out after saying they opposed the Bill.

Modi later tweeted: “An archaic and medieval practice has finally been confined to the dustbin of history. Parliament abolishes Triple Talaq and corrects a historical wrong done to Muslim women. This is a victory of gender justice and will further equality in society. India rejoices today.”

How govt got it cleared in Upper House

7-member Biju Janata Dal voted with the govt

11-member AIADMK, a BJP ally, spoke against the Bill and walked out

BJP ally JD(U), with six members, spoke against the Bill and walked out

TRS (6) didn’t participate

BSP (4) spoke against it; was absent from voting

TDP (2) spoke against it; was absent from voting

4 MPs of Cong, 6 of SP,2 of NCP, 1 of TMC and some others absented themselves

As Amit Shah sat in the House, BJP’s Piyush Goyal, Bhupender Yadav, C M Ramesh and Pralhad Joshi reached out to MPs from Odisha, Andhra Pradesh and Tamil Nadu

Sanjay Sinh of the Congress quit his Rajya Sabha membership to join the BJP

Are we delivering pizzas: Derek O'Brien to govt on hurried passing of Bills

Are we delivering pizzas or passing legislation, TMC MP Derek O'Brien wondered on Wednesday, continuing his attack on the government over the speed with which Bills have been passed this Parliament session.  

On Tuesday, the Trinamool Congress MP had said the way the Bills were being passed amounted to a "mockery of Parliament" and was the government's way of "smothering" the Opposition. 

"Parliament is supposed to scrutinise Bills. This chart explains the bulldozing this Session. Are we delivering pizzas or passing legislation?" he tweeted on Wednesday.   

 

Derek O'Brien | ডেরেক ও’ব্রায়েন

✔

@derekobrienmp

 #Parliament is supposed to scrutinize Bills. This chart explains the bulldozing this Session. Are we delivering pizzas or passing legislation? #ConstructiveOpposition

View image on Twitter

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 O'Brien also attached a chart purportedly showing the contrast in numbers -- during 2004-2009, 60 per cent of the total Bills by Parliament were scrutinised, during 2009-2014, this went up to 71 per cent, from 2014-2019 the number came down to 26 per cent. In the present Lok Sabha, of the 18 Bills passed, only one underwent scrutiny, bringing the number down to 5 per cent, he claimed.  

Unnao rape victim accident: Oppn parties walk out of LS, seek govt's reply

Several Opposition parties, including the Congress, walked out of Lok Sabha on Wednesday demanding a reply from the government on the alleged attempt on the life of the Unnao rape survivor.  

Leader of the Congress in Lok Sabha Adhir Ranjan Chowdhury raised the issue, saying Home Minister Amit Shah has not responded to the issue despite the Opposition raking up the matter repeatedly.

He said though a CBI probe is on, the family members of the survivor have claimed that they face a threat to life.

 

Later, Congress, DMK, NCP and IUML members walked out. Congress leader Sonia Gandhi too walked out.

N K Premchandran (RSP) also walked out over an alleged incident of a person being burnt alive in Uttar Pradesh.

On Sunday, the car in which the rape survivor, her family and lawyer were travelling was hit by an overspeeding truck in Rae Bareli, killing two members and leaving her and the advocate critically injured.

The CBI has booked BJP MLA Kuldeep Singh Sengar and 10 other under murder charges in the accident case of Unnao rape survivor. 

 

The Uttar Pradesh Police on Monday filed a murder case against BJP MLA Sengar and nine others after the rape survivor's family filed a complaint, alleging conspiracy behind the accident.   

OPPO launches new operating system ColorOS 6 trial version for F9 mobiles

OPPO has announced the rollout of the ColorOS 6 Open Trial Version for its F9 smartphone. The new ColorOS 6 Open Trial Version offers users the latest Android Pie mobile operating system experience, and comes replete with all-new customized features.

Android Pie - a major upgrade

All models upgraded to ColorOS 6 integrate the practical new features introduced by Android Pie, including improved interactions, enhanced AI capabilities and optimization of the underlying interface.

An all-new navigation gesture in Android Pie offers a cutting-edge experience in user interactions. Android Pie is powered by Google's AI capabilities with Google Assistant, ARcore, Google Lens and other intelligent scenario-based services. OPPO's integration of the latest software update provides a smoother, smarter and more user-friendly experience for customers.

Borderless design

ColorOS 6 adopts a borderless design concept to relieve user anxiety caused by information overload. OPPO combines light, subtle colors and a simplistic white background to create a lightweight and elegant user interface, which differentiates ColorOS 6 from Google's native interface.

The simplistic white background design has subtle gradients that seamlessly blend with built-in modern art wallpapers, delivering an integrated experience in borderless aesthetics.

Improved interaction

ColorOS 6 shifts the navigation bar to the top of the screen and streamlines the information hierarchy by replacing tapping with swiping to improve efficiency and smoothness of interactions. ColorOS 6 also features animations that simulate natural friction to create a more intuitive virtual experience for operations, for example, when swiping upward or across the screen.

Dazzle Color Mode and a brand-new portrait style

OPPO's continuous pursuit of excellence in photography over the years means ColorOS 6 comes packed with advanced imaging technologies. The upgrade introduces two new features: Dazzle Color Mode and a brand-new portrait style.

Dazzle Color Mode leverages mapping algorithms to restore vivid colors, reverse light and improve shading in pictures. It also expands the range of scenarios that smartphone photography can handle. ColorOS 6 employs AI to scan through the most-viewed photos on social networks globally to customize five portrait filters. Algorithm-based optimization for facial recognition and skin tone adjustment helps to intelligently meet user demand for beautification capabilities.

Elevated gaming experience

OPPO's gaming optimization program 'Game Boost' has been upgraded to version 2.0. What's more, the addition of new core technologies 'Touch Boost' and 'Frame Boost' effectively improve game feel and frame rate stability, which tests have shown to deliver a 38% increase in performance.

The independent app 'Game Space' supports a variety of features and customization of game parameters for network, power consumption, messaging and more. Meanwhile, 'Game Assistant' provides shortcuts for a number of functions, including 'do not disturb', background processes and customizeable split-screen for a personalized gaming experience.

Payment security and privacy protection

ColorOS 6 introduces powerful security features to mitigate the risks of personal data leaks in both high-frequency and extreme cases, including App Encryption, Private Safe and Find my device.

To ensure payment security, ColorOS 6 features automatic payment blocking, payment identity verification and environment monitoring for payment apps, eliminating risks like induced payment, unsafe links and fraudulent messages.

The new upgrade first hits OPPO's popular F9 smartphone and will subsequently be rolled out for the flagship Find X and a range of available OPPO devices in the near future to deliver an enhanced software experience for all ColorOS users.

Apollo bullish about growth, to invest Rs 3,800 cr in new Andhra project

Despite the economy facing a downturn Apollo Tyres has earmarked around Rs 3,800 crore for a green field project in Andhra Pradesh. The company is also expanding production of radial truck tyres to 12,000 units a day from the current 6,000 units. 

Addressing the shareholders in Kerala, Apollo Tyres' Chairman, Onkar S Kanwar said "India lies on the cusp of a great opportunity. A strong government is in place with a renewed mandate and a commitment to keep India at the top of the global economic order. The environment around us is not easy, with trade wars, protectionism and uncertainty around the world. But India has the potential, the ability and the leadership to break free of these shackles and lead global economic growth".

Apollo's single-minded focus is to realise the Vision 2020 of becoming ‘a premier tyre company with a diversified and multinational presence’, he said. To achieve this vision, the company is focusing on key objectives of ‘building leadership in India’, ‘premiumisation in Europe’, and ‘exploring strategically attractive markets where Apollo is currently not represented’. 

Today, the company has a market share of 30 per cent in the OE( original equipment) segment in India for small- and mid-sized cars and the company’s OE fitted tyres are in eight of the top 10 cars sold in India. 

"There are certainly uncertain times ahead, yet the team continues to be bullish about the growth prospects," said Kanwar.

The company has invested close to Rs 4,000 crore in a new Greenfield facility in Hungary and has also earmarked Rs 3,800 crore for a greenfield project in Andhra Pradesh. 

The facility will cater to both TBR (Truck, Bus Radial) and PCR (Passenger Car Radial) with a capacity of 3,000 TBR tyres per day and 15,000 PCR tyres, respectively.

Apollo is also upgrading its existing manufacturing plant in Chennai, expanding radial truck tyre production to 12,000 units a day from earlier 6,000 units. 

While in India, Apollo is able to achieve its leadership position in multiple segments, the company has started gaining traction in Europe too after it started catering to the original equipment manufacturers (OEMs) of the Hungary plant. 

Apollo is the only Indian company that supplies to various OEMs in Europe like Volkswagen, Ford and Audi. "The strategy of replicating our success with OEMs in India will go hand in hand with increasing our market share in the replacement markets," said Kanwar.

Bengaluru's Bounce becomes world's fastest-growing bike-sharing start-up

Bounce on Tuesday said that it has reached a significant milestone of 60,000 rides per day in Bengaluru, making it the fastest-growing bike-sharing start-up in the world. Within 10 months of launching dockless scooters in Bengaluru, the firm has completed over five million rides, covering 30 million km.

The company, which was valued at over $220 million in June this year after raising $72 million in a funding round, said that it is scaling on par with global players, including US-based scooter-rental companies Lime and Bird.

"We are absolutely stoked by this milestone. This feat would not have been possible without the contribution of each and every member of the Bounce community, both employees and users alike," said Vivekananda H R, chief executive and co-founder of Bounce. "We are steadily on our way to democratising mobility in India and making Bengaluru a public transport society," he added.

According to the Transport Department, Bengaluru is home to over 7.6 million private vehicles, as per a 2018 report. With the introduction of last-mile bike sharing, the usage of public transportation has seen a steady increase. Bounce's 60,000 rides per day milestone was achieved with around 7,000 dockless scooters covering an average distance of 7-8 km per ride. The company said it also remains one of the most affordable modes of commuting, offering users rides at Rs 5 per km. 

"I have always believed that last-mile connectivity is going to be a game-changer in addressing urban traffic issues and enable a smooth transition to public transportation," said N Murali Krishna, special officer at Directorate of Urban Land Transport (DULT). "This achievement of Bounce within a short span of time stands a testament to the viability and acceptance of shared mobility," he added.

Bounce's parent company, Wicked Ride, was founded in 2014 by Vivekananda H R, Anil G and Varun Agni. Its app allows the users to pick up a scooter and drop it at any legitimate parking spot. The firm said accessibility and affordability have made it one of the "preferred" modes of transport, both for first- and last-mile connectivity, as well as regular commute. The company has plans to introduce over 50,000 vehicles during the current year.

Start-ups addressing short-distance transport have taken the mobility space by storm recently, most notably with the rise of bike and scooter firms, according to research firm CB Insights. It said bikes and scooters, which allow people to easily move shorter distances, can help commuters access public transport hubs several miles away. 

Approximately 42 per cent of Bounce rides either originate or culminate at metro stations, which means roughly five per cent of all metro commuters use Bounce as their preferred mode of commute for first- and last-mile connectivity. Bounce said it has also been empowering women, who constitute more than 25 per cent of its users.

In June this year, Bounce's rival, Vogo, raised Rs 25 crore as debt from Alteria Capital. Last year in December, the firm formed a strategic partnership with Ola, where the ride-hailing giant will boost Vogo's supply by investing in 100,000 scooters on the Vogo platform, worth $100 million. Its offerings will be available for Ola's customer base of over 150 million, directly from the Ola app.

RBI allows domestic banks to sell NPAs abroad as one-time settlement

The Reserve Bank of India (RBI) on Tuesday allowed domestic banks to directly sell their bad loans in manufacturing and infrastructure sectors to investors abroad as part of one-time settlement (OTS) exercises. The move will allow overseas investors to take direct loan exposure to Indian corporates.

The defaulters, or stressed borrowers, can sell their assets in accordance with the OTS scheme, in order to raise external commercial borrowing (ECB) from abroad to repay domestic loans, the RBI said in a statement.

At the same time, Indian corporates can raise long-term loans for working capital, ‘general corporate purposes’ and repaying domestic rupee loans, the statement said.

Apart from easing the non-performing asset (NPA) pressure on domestic banks, the RBI’s move can allow companies to raise cheap, long-term loans easily now. Part or all of that can be used to retire domestic loans.

The RBI notification said corporate borrowers can avail of ECB “for repayment of rupee loans availed domestically for capital expenditure in manufacturing and infrastructure sector and classified as SMA-2 or NPA, under any one-time settlement arrangement with lenders”. SMA is special mention account, in which SMA-2 is the loan not serviced between 60 days and 90 days.

If the loan is not serviced on the 91st day, it becomes NPA.

“Lender banks are also permitted to sell, through assignment, such loans to eligible ECB lenders, except foreign branches/overseas subsidiaries of Indian banks, provided, the resultant external commercial borrowing complies with all-in-cost, minimum average maturity period and other relevant norms of the ECB framework,” the notification said.

Experts said it diversifies the loan market for the corporate borrowers.

“This is a good solution, which would shift credit outside of the Indian banking sector, but it would also increase our forex exposures,” said Abizer Diwanji, national leader of financial services for EY. Senior bankers, speaking on condition of anonymity, told Business Standard that the move potentially opens up two possibilities. One, instead of heading for the Insolvency and Bankruptcy Code (IBC), banks and the companies can now easily get into a OTS scheme between themselves, funds for which have to be raised abroad by the defaulter, or the banks.

Bankers pointed out that the RBI was distinctly uncomfortable with this route and didn’t allow companies to raise money abroad to repay domestic loans for the precedence of the money abroad is not known. Even as the deal has to be through an ECB, which can be given only by eligible lenders, who are also regulated entities. But there is some element of gray area that is beyond the scope of the RBI or any other Indian regulator to find out.

The fine print

Corporates can raise long-term ECB loans for working capital, general purpose, and to repay domestic loans

Banks or corporates can sell bad loans directly to ECB lenders abroad

Loans raised will be part of one-time settlement with companies

Loans with minimum average maturity of 7-10 years can be raised to repay domestic loans

RBI was earlier opposed to raising ECBs to repay domestic loans

Experts say the move can raise India’s external liability significantly and build up risks

Domestic ARCs to lose business, will be forced to merge

Maha govt accords infrastructure status to Mumbai-Pune hyperloop project

The Maharashtra government on Tuesday accorded the infrastructure status to the Mumbai-Pune ultra-fast hyperloop transport project that seeks to reduce the travel time between the two cities to just 23 minutes.

The state Cabinet approved a proposal to give infrastructure status to the project at a meeting here.

The Cabinet also approved formation of a consortium of DP World FZE and Hyperloop Technologies as proponentsof the original project, according to a statement from the Chief Minister's Office.

Hyperloop is a ultramodern, superfast transport project which is being implemented to link Mumbai and Pune, which are located around 200km apart.

It will run from BKCin Mumbai to Wakadin Pune, covering a distance of 117.5 km.

The hyperloop train will run at a speed of 496 km per hour and cover the distance between the two cities in just 23 minutes, the statement said.

At present, the travel time taken by trains between the two cities is three-and-a-half to four hours.

The FDIin the entire project, which will take seven years for completion, is to the tune of Rs 70,000 crore, the statement said.

In the first phase, the project will be run on a pilot basis for 11.8km in the Pune Metropolitan region at a cost of Rs 5,000 crore, it added.

US working hard to help Indian economy grow under Indo-Pacific plan: Pompeo

The United State is "working hard" with the Indian government to provide the country with opportunities to grow its economy as a part of the Trump Administration's Indo-Pacific strategy, Secretary of State Mike Pompeo said Tuesday.

"Our Indo-Pacific strategy is well on its way to bearing fruit for not only them but for the United States, and we have watched these coalitions build out. We're working hard with the Indian government to provide them with opportunities to grow their economy as well," Pompeo told reporters accompanying him on a tour to the Indo-pacific region, in response to a question.

 

Pompeo's remarks come weeks after a delegation of the US Trade Representatives travelled to India for talks on a wide range of bilateral trade issues, in particular tax and tariffs. 

Earlier in the day, India's Ambassador to the US Harsh Vardhan Shringla said in Colorado that trade between the two countries has grown to $142 billion in 2018, and is expected to reach $238 billion by 2025.

 

He said the next stage of growth will be driven by the small and medium-sized enterprises (SME) in both the countries.

Specifically, the growth of SMEs in the digital marketplace present an ideal opportunity for increased India-US cooperation, he added.  

Tech Mahindra Q1 net profit up 6.8% to Rs 959 crore, revenue rises 4.6% YoY

Pune-headquartered software firm Tech Mahindra (TechM) missed the Street estimates for the June quarter as it reported revenue earnings of Rs 8,653 crore, up 4.6 per cent year on year (YoY) and down 2.6 per cent sequentially. Profit after tax (PAT) was Rs 959 crore, up 6.8 per cent YoY and down 15 per cent over the quarter.

Analysts had estimated a seasonal impact on the communication vertical to affect revenues by up to 2 per cent on a sequential basis and 5 per cent over the year. Profit estimates were factored to dip 6.6 per cent over the quarter and grow 9 per cent YoY.

In constant currency terms, revenue grew 3.7 per cent while Ebitda (earnings before interest, tax, depreciation and amortisation) slipped 320 bps YoY to Rs 1,314 crore. Operating margins came in at 15.2 per cent, down 120 basis points (bps) YoY and 320 bps QoQ.

“The communications (vertical) business was down 3.2 per cent over the quarter due to seasonality in mobility business and it was flat minus the seasonality in constant currency basis. The overall deal pipeline is robust and larger than what we had in the previous year,” said C P Gurnani, chief executive officer and managing director, TechM. He, however, remained optimistic about communication.

Health care was among the few businesses that remained robust in the quarter while manufacturing and BFSI took a hit. Ebitda was impacted by 100 bps each due to mobility slowdown as well as wage hikes. Visa costs and currency headwinds continued to weigh in on the margins as well as about 70 bps impact on forward looking investments.

Indian IT firms contributed $57 bn to US GDP in 2017: Ambassador Shringla

Indian IT companies contributed $57.2 billion to the GDP of the US in 2017, India's top diplomat in the US said on Tuesday.

Addressing business leaders in Denver, Colorado, India's Ambassador to the US Harsh Vardhan Shringla said India-based global IT services companies employ more than 175,000 workers in the US accounting for 8.4 per cent of employment in the computer systems design and related services industry.

In his address at the 2019 State International Development Organisation (SIDO) Conference on US-India Trade and Investment: Opportunities and Best Practices, Shringla said Indian IT companies in the US are deeply embedded in the roots of American society and their contributions have exceeded far beyond the economy.

For instance, the TCS launching an education initiative in 2017 called "My Future in School", Infosys partnering with Trinity College on Applied Learning Initiative in September 2018, WIPRO's partnership with First Book to distribute over 200,000 books by 2019-end, Mindtree's $ 2 million grant to Stanford University in July 2018 are some of the examples of Indian IT companies' contributions beyond their business operations, he said.

Shringla said the two-way investments between India and the US reached about $60 billion.

The US with $45 billion cumulative investment is the sixth source of foreign investment in India, he said in his address to State International Development Organization annual (SIDO) convention's India event organised in partnership with US India Business Council (USIBC).

SIDO is the only American organisation that is focused on state international trade development.

"The US-India relationship is at a critical juncture and needs to evolve with the changing landscape of US global trade relations. State-to-state ties help Indian companies investing in the US and US companies who need support at the ground level in India," said USIBC president Nisha Desai Biswal.

India under Prime Minister Narendra Modi, he said is taking steps to ensure that US investments into India is taken to new levels by ensuring profitability as well as protection of Intellectual Property.

Through India's National IPR policy since its launch in 2016, the government has been working actively to promote IPR awareness and augment technical manpower to simplify the patent procedures and reduce pendency in patents and trademarks, he said.

It has completed 50 enforcement workshops for police officials across 26 states and union territories. An IPR enforcement toolkit has been prepared to serve as a ready reckoner for policy officials. Enforcement of intellectual property in India is one of the major concerns of American companies.

India, he asserted, has made strides across various sectors. The fact that India has jumped 65 places in four years to reach 77th position on the World Bank's Ease of Doing Business ranking and 52nd rank in the Global Innovation Index are just some of the global indices reflecting India's emergence as a hub for innovation and manufacturing.

This is in line with Prime Minister Modi's 'Make in India' initiative.

Bug creates unified payments interface IDs, Truecaller recalls app update

Call identification app Truecaller on Tuesday rolled back an update to its app after users complained of unified payments interface IDs getting created in their name without their knowledge.

Several users complained on social media about the app’s latest version (10.41.6) automatically sending an SMS from their phones, after which they began getting messages saying “Your registration for UPI app has started”.

“We have discovered a bug in the latest update of Truecaller that affected the payments feature, which automatically triggered a registration post updating to the version. This was a bug and we have discontinued this version of the app 

so no other users will be affected,” Truecaller said in a statement. “We’re sorry about this version not passing our quality standards. We’ve taken quick steps to fix the issue, and already rolled out a fix in a new version.”

The firm said a new version with the fix will be available shortly for the affected users. “However, in the meanwhile they can choose to manually de-register through the overflow menu in the app.”