BACK PAGE, P22 COMPANIES, P4 INTERNATIONAL, P3 REPLACING DRAVID VOLUNTARY SEPARATION SCHEME LONG-SOUGHT INDUSTRY DEMAND Gambhir named new head coach of Indian men's cricket team Air India-Vistara merger: Nearly 600 employees may lose their jobs Fed mulls rule tweak that could save biggest US banks billions BENGALURU, WEDNESDAY, JULY 10, 2024 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XXXVII 68, 26 PAGES, `12.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 80,351.63 ▲ 391.25 NIFTY: 24,433.20 ▲ 112.65 NIKKEI 225: 41,580.17 ▲ 799.47 HANG SENG: 17,523.23 ▼ 0.83 `/$: 83.49 ▲ 0.01 `/€: 90.37 ▲ 0.13 BRENT: $85.18 ▼ $0.57 GOLD: `72,271 ▼ `279 STATES’ CAPITAL EXPENDITURE likely fell by 14% on year in the first two months of the current fiscal against a 90% rise in the year-ago period, largely due to a slowdown in spending in some states on account of polls and lower growth in tax revenues, reports Prasanta Sahu. ■ PAGE 2 INDIATO INVEST `8K CR IN 12 HYDEL UNITS INARUNACHAL THE GOVERNMENT PLANS to spend $1 billion to expedite the construction of 12 hydropower stations in the northeastern Himalayan state of Arunachal Pradesh, two sources said, a move that could raise tensions with China that lays claim to the region, reports Reuters. ■ PAGE 2 XIAOMI SHOWCASES ELECTRIC VEHICLE SU7 IN INDIA XIAOMI ON TUESDAY showcased its SU7 EV (electric vehicle) in India. However, the Chinese company has no plans to enter the EV market in the country as of now and will continue its focus to penetrate the market in China. ■ PAGE 5 FE S P E C I A L S ‘We need to get courage back in Indian advertising’ MD, South Asia (insights division), Kantar talks about impactful advertising ■ BRANDWAGON, P9 Sebi order to impact discount broking The discount brokerage model will have to tweaked in the wake of the Sebi order ■ EXPLAINER, P9 ■ Number of ■ Committee expiries per week to be reduced to one per exchange led by former RBI ED G Padmanabhan ■ Has been deliberating on mechanisms to protect retail investors ■ Panel also includes brokers associations, officials from stock exchanges, academicians, Sebiwholetime member Deepak Shenoy, founder, Capital Mind, wrote on X: “These will help, undoubtedly, in reducing the froth in this market. I like the increase in contract size, which means more serious players will come in and you get a lot less of the gambler territory.” ARUNIMA BHARADWAJ New Delhi, July 9 Continued on Page 6 Continued on Page 6 LIMITED PERIOD OFFER TATA MOTORS ON Tuesday slashed prices of its entire SUV range and Mahindra & Mahindra (M&M) its XUV 700AX7 variants by up to `2 lakh. The discounted prices for Mahindra & Mahindra’s (M&M) XUV 700 variants will be available for four months. For Tata Motors’ sports utility vehicle (SUV) models such as Punch, Nexon, Safari and Harrier, the price reductionofupto`1.4lakhwillbeineffecttill July 31. The price reductions come amid a massive inventory pile-up at dealerships. M&M, one of India’s largest SUV makers, announced the biggest cut on the XUV 700 prices since its launch, reducing it by up to `2.01 lakh (ex-showroom) on the top variant. The base variant of the XUV 700 AX7, which now starts at `19.69 lakh, saw a reduction of `1.7 lakh.All other variants saw similar cuts. The revised pricing aims to make the XUV700 “even more accessible to a broader range of customers while providing exceptional value”, the Mumbaibased company said. The revised prices of Tata Motors’flagship PLI scheme for underground mining machines in the pipeline SUVHarriernowstart at `14.99 lakh and that of the Safari at `15.49 lakh.The Nexon.ev,one of India’s highest-selling EVs, will see the biggest price reduction since its launch. Its prices have been cut by up to `1.3 lakh. Tata Motors, M&M slash SUV prices SWARAJ BAGGONKAR Mumbai, July 9 Continued on Page 6 ■ Related reports on Page 6 THE GOVERNMENT IS likely to come up with a production-linked incentive (PLI) scheme for underground mining equipment and heavy earth-moving machinery by 2025-26, an official source told FE.The scheme,proposed to be implemented over a period of five years,is designed to bolster the largely unexplored underground coal mining in the country. “Wehavemoreorlesspreparedthedraft. It now needs to be discussed with the ministriesconcerned,finalised,andapprovedby the government,” the source said. Currently, Coal India imports highcapacity equipment such as electric rope shovels,hydraulicshovels,dumpers,crawler dozers,drills,motor graders,and front-end loader wheel dozers to conduct its mining operations.Thissetofmachinesisvaluedat `3,500crore,inadditiontocustomsdutyof `1,000 crore, the government had earlier said. To curb these imports and boost domestic manufacturing,CILhas devised a strategic plan to phase out imports of these machines graduallyoverthe next sixyears. Lastyear,CILchairedaninterdisciplinary high-level committee to provide recommendationsforbolsteringdomesticmanufacturing of heavy earth-moving machinery and underground mining equipment. Thecommitteehadthenrecommendedthe standardisation of equipment to boost domestic manufacturing. Thegovernmenthasprojectedcoaltobe the predominant source of energy even beyond 2030 as the demand for power increases and thus expects a huge requirement of equipment for both opencast and underground mines in the next 10years. Continued on Page 6 ■ Prices of M&M's XUV 700 AX7 reduced by `1.7L ■ All other variants of same trim saw similar price cuts ■ Discounted prices valid for four months, Mahindra & Mahindra said ■ Tata Motors announced price cuts of up to `1.4L on Punch, Nexon, Safari & Harrier ■ Nexon.ev sees biggest price cut since launch, by up to `1.3L INDIA-RUSSIA ECONOMIC TIES Goods trade ($ billion) Exports Imports 61.4 `5 lakh to `20-25 lakh Foreign direct investment (FY20-FY24, $ billion) To Russia 2019-20 2020-21 2021-22 12.7 4.2 ■ Lot size to increase from current Russian President Vladimir Putin presents the Order of St Andrew, Russia's highest civilian honour, to Prime Minister Narendra Modi in Moscow on Tuesday 46.2 THE SECURITIES AND Exchange Board of India’s (Sebi’s) expert working committee on derivatives trading has set the bar higher for retail investors.Theproposalsinclude increasing the lot sizes of futures and options (F&O) contracts, raising margins around expiry dates, and reducing the number of weekly options contracts. Sources aware of the development said the recommendations will be discussed by Sebi’s Secondary Market Advisory Committee (SMAC) on July 15. The committee,led byformerRBI executive directorGPadmanabhan,hasbeendeliberating onthemechanismstoprotectretailinvestorsin the futures and options segment.The committee also includes brokers associations, officials from stock exchanges, academicians,a wholetime member(WTM) of Sebi,and others. According to sources, the key proposals include increasing the lot size from the current `5 lakh to `20-25 lakh.In addition,it has said that the number of expiries per week should be reduced to one per exchange. Most of the proposals revolve around raisingmarginseitherdirectlyorindirectlybyraising the minimum lot sizes,whichwill discourage smaller investors from trading in F&O. “Some decisions regarding tighter norms for derivatives trading could be taken by the regulator later this month or in August,” a source said, stressing that something may come even before the Budget,which is scheduled on July 23. 3.1 STATES' CAPEX LIKELY DECLINED 14% IN APRIL-MAY VIVEK KUMAR M Mumbai, July 9 INDIAAND RUSSIAonTuesdayset a target of$100-billionbilateraltradeby2030—up from $65 billion in 2023-24 — with New Delhi seeking greateraccess to the Russian marketforindustrialandagriculturalgoods foramore balancedtrade relationship. “PrimeMinisterNarendraModitookup the need to broad-base the trade basket between the two countries,” foreign secretary Vinay Mohan Kwatra said after the 22nd bilateral annual summit between ModiandRussianPresidentVladimirPutin at the Kremlin.The agenda of discussions betweenthetwoleaders,hesaid,was“principallyeconomic”. IndiarunsahugetradedeficitwithRussia — in 2023-24, trade between the two countries touched $65 billion, of which India’s exports were just $4 billion and imports $61.4 billion (see chart). 9.8 THE ASSETS MANAGED by the mutual fund industry surpassed `60 trillion for the first time in June, with equity inflows rising 17%, logging the 40th consecutive month of net inflows, data from the Association of Mutual Funds in India (Amfi) showed, reports Vivek Kumar M. ■ PAGE 7 STRICTER NORMS 3.2 MUTUAL FUNDS’ AUM CROSSES `60 TRN IN JUNE July 15 meeting to discuss suggestions MUKESH JAGOTA New Delhi, July 9 5.4 HUNDREDS OF WORKERS at Samsung India's manufacturing plant in Sriperumbudur, near Chennai, assembled outside the facility on Monday to demand the recognition of their union, better wages and improved working conditions, reports Narayanan V. ■ PAGE 5 Settlement system using local currencies to be developed 2.6 SAMSUNG WORKERS IN TN FORM UNION, SEEK WAGE HIKE Sebi panel raises the bar for retail investors in F&O PM seeks‘balanced’trade with Russia,sets $100-bn target 7.09 NEWS HIGHER LOT SIZE, MARGINS PROPOSED 3 IN THE 2022-23 2023-24 From Russia 1.2 Hope more states promote hybrids: Maruti chairman RISHI RAJ New Delhi, July 9 should be a level-playing field. “I am happy to say that the government today fully understands that all WITH THE UTTAR Pradesh government technologies need to be promoted, and I waiving registration fees for hybrid vehi- am sure in the days to come more state cles, Maruti Suzuki India governmentswill dowhat chairman RC Bhargava on UP has done,” Bhargava RC BHARGAVA, MARUTI Tuesdaysaidheisconfident SUZUKI INDIA CHAIRMAN, said.“India cannot achieve that other states will follow after UP waiver on hybrids carbon neutrality by relysuit.HecongratulatedUttar ing solely on electric vehiPradesh for taking the lead cles as 75% electricity in I'M HAPPYTO SAY in promoting the hybrid the country continues to GOVTTODAY FULLY be generated through technology to reduce emissionandfuelconsumption. UNDERSTANDS THAT coal,”he said. Speaking to FE, Bhar“There’s no ALLTECH NEEDS TO debating as to whichpoint gava said the company has techBE PROMOTED been trying to convince the nologyis better.The objeccentral as well as state govtive should be to reduce ernments that if the aim is emission and consumptoreduceemissionandcontion of petrol and diesel,so sumption of petrol and all technologies which diesel,thenalongwithelechelp in achieving these tric vehicles, other techgoals should be provided nologiessuchashybrid,biosimilar incentives,” fuel and CNG should be Bhargava added. promotedandgivensimContinued on Page 6 ilar concessions.There Panel nod to Paytm to invest in arm PAYTMHASSECUREDapproval from a government panel thatoverseesinvestmentslinkedtoChinatoinvest`50crore in Paytm Payment Services, three sources told Reuters.The nod, still to be vettedbythefinanceministry,willremove themainstumblingblocktothefirmresuming normal business operations. Financial inclusion index rises to 64.2 THE RESERVE BANK OF India’s (RBI) Financial Inclusion Index, which captures the extent of financial inclusion across the country, rose to 64.2 in March this year from 60.1 in March 2023, showing growth across all the parameters. ■ PAGE 7 PAYS `4 CRORE IN SETTLEMENT IN NON-COMPETE CASE Cognizant settles Jatin Dalal lawsuit with Wipro PADMINI DHRUVARAJ Bengaluru, July 9 ONE OF THE most high-profile cases involving a non-compete clause has finally been buried. Nasdaq-listed, IT services firm Cognizant Technology Solutions onTuesdaysaid that its chief financial officer Jatin Dalal has reached a settlement in the lawsuit filed by his former employer, Wipro. Cognizant has paid $505,087 (around `4 crore) in an arbitration case. Cognizant also said that former Wipro senior vice-president Mohammad Haque’s lawsuit has also been settled with Wipro. Industry observers said this is probablythe first time in the recent past that such a settlement relating LEGALTANGLE ■ In Nov 2023, Wipro filed a lawsuit against Jatin Dalal ■ IT firm alleged he breached non-compete clause of employment contract by joining Cognizant within 12 months of departure ■ Sought a compensation of `25 crore with interest of 18% ■ Dalal responded by seeking arbitration, which a Bengaluru court allowed to non-compete clause has taken place in the IT sector. “The terms of the settlement, which were reached without any admission of liability by either party, are confidential. The settlement resolves all pending disputes between Dalal and Wipro,” Cognizant said in a filing. “I am grateful for my journey with Wipro and I am pleased to have this matter behind me. I’m looking forward to continuing to drive Cognizant’s growth agenda while delivering value to our clients, employees, and shareholders,” Dalal was quoted as saying in the statement. The arbitration had sought `25-crore damages and injunctive relief arising from Dalal’s alleged breach of non-compete and confidentiality obligations under certain compensation agreements with Wipro by joining Cognizant. “The settlement was reached without admission of liability by either party. The payment by the companycovers Dalal’s settlement payment to Wipro as well as reimbursement of his legal fees,” the filing said. Saurabh Govil, chief human resource officer, Wipro, said the company is happy to have settled the matter.“We are glad this issue has been resolved safeguarding our contractual rights. We wish Jatin wellin his future endeavours,”Govil was quoted as saying in a release. In November, Wipro had filed a lawsuit against Dalal,accusing him of violating the non-compete clause in his employment contract by joining rival Cognizant within 12 months of his last work date. In a counter move, Dalal requested the court to referthe matterto arbitration in his application. It was referred to arbitration by the Bengaluru city civil court in a hearing on January 3. Continued on Page 6 BENGALURU