spoutable

Monday, 25 September 2017

Metro to chug into more of west Delhi soon

New Delhi: For lakhs of west Delhi residents, Blue Line — connecting Dwarka Sector 21 with Noida City Centre/Vaishali — is the only Metro link with the rest of the city. To take any other Metro line, they have to travel till Rajiv Chowk. However, this is going to change in six months with the opening of the Janakpuri West-Kalkaji section of the Magenta Line.


This line, along with the Pink Line that goes to Rajouri Garden, will put west Delhi firmly on the Metro map for the first time. Not only will the Majenta Line cover densely populated areas of west Delhi like Palam, Dabri, Mahavir Enclave, Sagarpur, Dashrath Puri, etc, it will also bring that part of the city closer to the domestic airport, south Delhi, Gurgaon and Faridabad. “


At present, west Delhi commuters have no option but to travel till Rajiv Chowk to change trains. When the Magenta Line opens by March 2018, they can directly go to Hauz Khas in south Delhi or take a train to Gurgaon,” said a senior Delhi Metro Rail Corporation (DMRC) official. “The commuters will save at least 25 minutes of travel time when the line opens,” he said.


“The entire Magenta Line will also act as a feeder for the presently operational Blue Line as both the originating sta- tions of this corridor – Janakpuri West and Botanical Garden – are important Vinod Nagar west Delhi residents. Commuters will be able to change trains at the Rajouri Garden Metro station to reach northwest Delhi, north Delhi and south Delhi areas such as Sarojini Nagar and INA — an interchange station for the Yellow Line (Samaypur Badli-HUDA City Centre).


“The Magenta Line will cover areas that are only connected by buses at present. We expect it to reduce congestion on the Palam flyover, which gets choked during peak hours. The corridor has the same alignment as the flyover,” the official said.


The line will also go to the domestic Terminal 1 of the Delhi airport that, at present, can’t be accessed by Metro directly and commuters have to take a shuttle service from the Airport Express Line.


The Metro official also said that constructing an underground Metro corridor under congested parts of west Delhi was a challenge for DMRC. “We had to be extra cautious as we were tunnelling below densely populated areas and most dwellings in these areas don’t have very strong foundations,” he said. “The tunnel is also close to the foundations of the Palam flyover and Metro’s Line 3,” he added.

Safeguarding India’s heritage

New Delhi: When the NDA government came to power in 2014, culture was expected to be a contentious issue. Critics voiced their concerns that the government would lend their “saffron credentials” to all things culture. Such concerns seem to have some basis, as some irresponsible statements by the man at the helm, Minister of State (independent charge) of Culture Mahesh Sharma, has managed to obfuscate the efforts of the government in the field.


Outlandish statements
From making statements, later denied, that “night outs for Indian girls is not part of our culture” to launching a countrywide movement to rid India of “cultural pollution,” Sharma managed to create a negative impression of the culture ministry and for a time seemed to confirm the critics’ worst fears.


In fact, the man — who also had charge of the tourism ministry till recently — was seen as being more resourceful and dynamic in his other ministry where he had launched a slew of initiatives.


This included the launch of the eticketing service in monuments which helped increase tourist footfalls in the country, and the declaring of 25 of the most prominent monuments as ‘adarsh’ or ‘model’ monuments. This initiative, in particular, was welcomed by all stakeholders in the sector.


Initiatives introduced
In the culture ministry, Sharma and his team have announced a number of initiatives, some of which are still to see the light of day. One of the most prominent announcements in 2015 was the redevelopment of the National School of Drama (NSD) greenlighting a new campus in the next three to four years for a budget of Rs 180 crore.


Then, the ministry also launched the culture-mapping scheme under which artistes were to be “graded” in order to equally distribute central funds across all regions. Under the scheme, artistes from the field of architecture, sculpture, painting, handicrafts, puppetry, music, dance, theatre, and literature will be graded by the Centre on the basis of their performance.


The categories devised are O “Outstanding” P “Promising” and W “Waiting.” The grading which was and is done by a selected committee, that comprises bureaucrats and artistes, will determine the amount of funds an artiste will receive and whether he or she can participate in festivals. According to a government memorandum, only those in P and O categories will be eligible to participate in festivals abroad.


However, outrage has emerged about the “discriminative” nature of this project and in private officials said that grading the lakhs of artistes who applied — the number was estimated to be at 1 crore — was proving to be a difficult exercise.


Despite the criticism and the practi-
cal problems some of the younger artistes selected have lauded the system.
Declassification of Netaji Files
Come 2016, the ministry had a series of hits and misses. Taking forward his promise of declassifying the Netaji
Files, Prime Minister Modi released the first lot of 100 files after they were conserved and digitised on January 23, 2016 on the date of Netaji’s 119th birth anniversary. The second and third batch of 50 and 25 files were then released by Sharma on March 29 and April 29, 2016. A fourth batch, too, was released on May 27. In all, 16,530 pages relating to Netaji Subhash Chandra Bose were released.


Other notable achievements also came up during this year. In 2016, the excavated remains of the Nalanda Mahavihara and Sikkim’s Khangchendzonga National Park and Chandigarh’s Capitol Complex made it to the list of UNESCO’s World Heritage Sites, while yoga was recognised as an element in the UNESCO’s list of Intangible Cultural Heritage.


Amendment to Monuments Bill
On the policy front, the ministry has also introduced the Ancient Monuments and Archaeological Sites Remains (Amendment) Bill, 2017. If passed by Parliament, the Bill could ensure that public works can take place through the “prohibited area” which is 100 meters of a protected monument — a practice which is currently forbidden under the law.


Recovering documents and cultural artefacts
On the issue of documentation and recovering cultural artefacts from abroad the government has made some strides forward. During the PM’s visit to the United States, US Attorney General Loretta Lynch pledged over 200 artefacts worth $100 million to India. They included religious sculptures and statues, bronzes and terracotta artefacts which were stolen from India and smuggled in the international art market. However, since then, the ministry has managed to bring back only 17 pieces.


On a positive note, the government signed an MoU with the Torre do Tombo (National Archives of Portugal) and they have handed over digital copies of 12,000 documents under 62 volumes to the National Archives of India. They consist of correspondence between Lisbon and Goa between 1568 to 1914.


Controversy over ongoing statue project in Gujarat
Despite such initiatives, concerns that the culture ministry is looking to “saffronise” Indian culture have not faded. Following PM Modi’s announcement, the ministry’s release of over Rs 200 crore for the ‘Statue of Unity’, a monument dedicated to freedom fighter Sardar Vallabhbhai Patel which was slated to come up in Gujarat, has caused concern.

Comments abounded on social media stating that the project, estimated around Rs 3,000 crore, was money being wasted on a project that could have been earmarked for better purposes. The government has dismissed such concerns, stating that already there were a plethora of Indira Gandhi statues in the country, and the balance needed to be rectified. Clearly, the fight over the “politics of culture” is far from over.

IUC Cut Puts Telcos in VoLTE Phase

Kalyan Parbat & Devina Sengupta


Kolkata | Mumbai: The 57% cut in interconnect usage charge and decision to scrap it altogether from January 2020 is likely to drive incumbent telecom operators such as Bharti Airtel, Vodafone India and Idea Cellular to rapidly launch and expand calling over VoLTE technology, and unveil more bundled offers to protect their turf, said analysts and industry experts.


This could trigger a faster shift to data services from voice, which accounts for about 80% of revenue at present, they said. The Telecom Regulatory Authority of India last week slashed IUC to 6 paise per minute, with effect from October 1. IUC is paid by a mobile carrier where a call originates to the mobile network where it terminates.


In recent reports, Bank of America-Merrill Lynch and CLSA said that any move towards zero IUC, or a bill-and-keep model, would automatically compel incumbents to upgrade networks to voice over LTE or VoLTE, a technology which is currently offered pan-India only by new entrant Reliance Jio Infocomm, and migrate their traffic to cut costs.


The incumbent operators, of whom Bharti Airtel recently announced its commercial VoLTE services launch in Mumbai, have op- posed the cut in IUC. The other two are in a testing phase of VoLTE.


A senior executive of one of the top three incumbent telecom operators said that the steep cut in interconnect charges would “unfairly” force incumbents to switch to VoLTE networks even at a time when 90% of voice traffic in India still terminates on 2G, 3G and non-VoLTE 4G networks. “The customer must be free to choose his preferred technology and it’s not for us to compel him to make a choice of one over another. With Trai throwing its weight behind one technology (VoLTE), there is clearly a travesty of justice, and the regulator’s commitment of being technology neutral is broken,” said the executive, who did not wish to be named.


In a recent interview to ET, former Trai chairman Rahul Khullar backed this view, saying the regulator’s IUC regulation forces telcos to migrate to VoLTE, which requires fully dedicated IP-networks, ironically at a time when next-generation networks in India remain a distant thought.


Older operators currently offer voice services on the legacy circuit-switch technology, with data being offered on a 4G net- work and voice on a 3G or 2G network. VoLTE technology allows an operator to offer both voice and data on the same network, with voice being just another application that rides on an LTE data network, resulting in more efficient use of airwaves. Goldman Sachs warned that the latest IUC regulation underscores “the regulatory risks in the Indian telecom sector”, which could prompt “investors to question” whether further regulatory changes in the industry could hurt incumbent carriers.


Kotak Institutional Equities said that such regulatory decisions “chip away at any incumbency advantage”. “Managing the regulatory side of the equation on grey areas like IUC is critical and incumbents have not done a good job here,” it said in a note seen by ET.


The top three incumbent telcos — Bharti Airtel, Vodafone and Idea Cellular — will be the biggest revenue losers once IUC is cut and then scrapped since they have the most number of subscribers and they garner a majority share of the IUC as most calls ter- minate on their networks.


In the immediate term, brokerage PhillipCapital said, the IUC cut and the sharp growth in data uptake will prompt incumbents to unveil more bundled offers to protect average revenue per user or ARPU, although the near-term impact will be negative as profitability of such offers could be lower.


Analysts at Swiss brokerage UBS said the shift towards zero IUC would accelerate the move of the Indian mobile market to bundled plans.


Big operators, it said, would “now be disincentivised to support low ARPU customers”, who primarily receive incoming calls, and may move them to “minimum threshold ARPU plans”. According to IBS, markets such as the United States, Hong Kong and Singapore, which have embraced zero IUC, are primarily post-paid markets where “customers have to sign up for bundled packages”.


PhillipCapital, however, said it expects bundling and benefits of ARPU protection to provide some respite from the envisaged sharp drops in operating income (Ebitda) following the reduction in interconnect rates. Goldman Sachs said while the IUC cut will hurt the top three telcos in the near term, the medium-to-long term impact is likely to be less pronounced as the traffic flow between incumbent telcos and Jio is expected to “become symmetrical over time”.


Older operators offer voice services on circuit-switch tech, with data offered on a 4G network and voice on a 3G, 2G network

Thyssenkrupp to set up working group with unions over Tata Steel merger

On Friday, several thousand workers took to the streets to protest against the deal


THYSSENKRUPP AG is to set up a joint working group of board members and labour representatives to help implement the plan to merge with Tata Steel, it said in a statement published on Sunday after a supervisory board meeting.


The meeting was held after Thyssenkrupp top management’s move this week to sign a memorandum of understanding with Tata Steel for a 50-50 joint venture. If approved, it would create Europe’s second-biggest steelmaker after Arcelor Mittal, with combined sales of about 15 billion euros.


The working group will consist of members of the executive boards of Thyssenkrupp AG, Thyssenkrupp Steel Europe, which is the unit for the steel activities within the wider group, representatives of Thyssenkrupp’s works councils and the works councils of the steel sites, the statement said.


The working group will be headed by Markus Grolms, deputy chairman of the supervisory board of Thyssenkrupp AG and Oliver Burkhard, member of the executive board of Thyssenkrupp AG, where he is chief human resources officer, it said.


Thyssenkrupp AG chief executive Heinrich Hiesinger depends on the support of labour representatives, who hold half of the 20 seats on the group’s supervisory board and have fiercely opposed the deal with Tata Steel. On Friday, several thousand steel workers took to the streets of Bochum in Germany’s industrial heartland to protest against the deal, which would include up to 4,000 job cuts, about eight percent of the combined workforce. Opposition from Thyssenkrupp’s workforce could mean prolonged negotiations with management and delay any approval of the plan by the supervisory board, scheduled for early next year.


If all labour representatives on the supervisory board vote against the plans, its chairman Ulrich Lehner could still push them through with his casting vote but it is Hiesinger’s declared goal to get labour leaders to agree.


Meanwhile, Swedish finance investor Cevian, that holds a minority share in Thyssenkrupp, came out in support of Hiesinger’s plan for merging the steel unit with Tata Steel, according to a report in the mass weekly Bild am Sonntag.


It quoted a Cevian source as saying, “Splitting off the steel unit means a bigger focus on the (Thyssenkrupp‘s) industrial business.” “If the financial conditions are right, Cevian considers this option (the merger) good.”


Thyssenkrupp, whose other operations span car parts, elevators, construction steel and submarines, has faced calls to split off other parts of the business, most notably its elevator unit.

GSTN tweaked for August filing

GST Network (GSTN) has tweaked some of the features on its portal over the past month to make the system more robust and allow glitch-free tax payment facility to nearly 35 lakh assessees, its CEO Prakash Kumar said on Sunday. Of the total 87.33 lakh registered businesses on the GSTN, which manages the IT infrastructure of the new tax regime, 68 lakh were eligible to pay taxes in August.


Of the total registered taxpayers, 24.56 lakh are new registrations, while 62.77 lakh have migrated from the earlier excise, service tax and VAT regime. Kumar said the GSTN portal has handled a humongous load of filing of 1.3 lakh tax returns filing and payment per hour on September 20 -- the last day of filing of August tax returns. "Nearly 35 lakh people had filed returns till Saturday. We have done some tweaking in our portal and it is evident from the load GSTN handled at the time of August return filing," he told PTI. Kumar said a signifi cant number of returns were filed even after the due date of September 20 for August month.


Till September 20, over 30 lakh returns were filed, and the tally went up to nearly 35 lakh till September 23. "A lot of businesses file returns even after the end of due date as the (GST) Council has done away with late payment fee. This delayed filing of returns used to happen at the time of VAT payment as well in states," Kumar said.


The ministerial panel under Bihar Deputy Chief Minister Sushil Modi to look into glitches in GST Network will meet on October 4 to assess improvement in functioning of the portal.


Of the total 87.33 lakh registered businesses on the GSTN, which manages the IT infra of the new tax regime, 68 lakh were eligible to pay taxes in August

Politics may prevent a steep cut in the PPF rate

Interest rates on small savings schemes are due for recalibration next week, but observers believe the government might avoid making steep cuts. Small savings rates are linked to the prevailing yields in the bond market. In the July- September quarter, the average bond yield is roughly 20 basis points lower than the previous quarter. But the small savings rates may get cut by barely 10 basis points. “After the fuel price hike, a big reduction in the rates for small saving schemes can increase resentment among common investors,” says Monika Chopra, who teaches at International Management Institute..


A 10 basis point cut will reduce the PPF rate to 7.7%, the lowest in 37 years. PPF rates have progressively come down in the past two years, mirroring the decline in bond yields. Advisors say the PPF is better than bank FDs because of its tax-free status. Besides, consumer inflation is still low at 3.6%, so the real return from the PPF is more than 4%.


Salaried investors covered by the Employee Provident Fund can increase their PF contribution through the Voluntary Provident Fund ( VPF) which offers 8.65%. In most companies, employees can give the VPF mandate twice in a year— once at the beginning of the new financial year in April and again in the first week of October. So, this is the right time to opt for VPF if you want higher returns than the PPF. —Babar Zaidi

E-com festive sales grow over 50% from ’16: Analysts

Online retailers like Flipkart and Amazon are estimated to have grown their sales by over 50% compared to last year as the five-day festive event came to an end on Sunday, analysts tracking the market said.


Overall gross sales is expected to hit up to $1.7 billion, according to analysts compared to the $900 million the industry racked up last year during the corresponding period. The data is indicative and not shared officially by any of the companies.


The festive season leading up to Diwali is significant for e-tailers as it helps them mop up a good chunk of their annual sales and also brings in a new set of consumers, who typically don’t shop online.


Flipkart CEO Kalyan Krishnamurthy claimed the e-tailer grabbed 70% share of online sales this week widening its lead over Amazon this year, although he did not detail its shipment numbers or gross sales during the past five days. Amazon termed this year’s sale as its biggest saying rivals had used “poorly informed speculative data” for establishing their leadership.


Initial data from logistics companies and analysts suggested that Flipkart is likely to have clocked around $700-800 million in gross sales, while Amazon managed $500-600 million of sales this week. According to top executives at Amazon and Flipkart, smartphones and large appliances were the big drivers of sales as expected. The sale of Prime subscriptions grew four times compared to single-largest day sale of Prime for Amazon. The company has been pushing its Prime programme at Rs 499 per annum as members purchase more than non-Prime users. Paytm Mall, which saw its first festive season sale, witnessed spike in categories like smartphones, electronics and fashion.


“Our success during this sale was not due to just deep discounting but the unique selection we added in the run up to the sale. Our affor- Initial data show e-tailers have clocked sales in the range of in the 5-day event, according to Forrester Research In 2016 during the same period, the overall sales stood at Both and growth were largely driven by &
remained top grosser for as it grew compared to its highest single day sales

were categories that saw first-time users making purchases

witnessed towns contributing the sale this year more to dability programmes played a big role this sale and I can say we have surpassed what we had aspired for during the sale which was about having 70% share of the market. We have doubled our gross sales,’’ said Krishnamurthy.


During the sale, data released by research firm Red Seer said that awareness for ‘Big Billion Days’ sale was higher than that for Amazon’s ‘Great Indian Festival’.


“Smartphones and large appliances were the highlight of the sale as they drove large parts of the sale. All the major brands had their new ranges getting launched on Amazon during sale and the kind of response we have seen for iPhone deals has been phenomenal,” Manish Tiwary, VP, Amazon India, said while talking about the leadership claims of Flipkart in the smartphone category. Smartphones have been traditionally the topselling product during such sale events. 700-800 450-550 500-600 400-425 first sale season was also largely driven by and Major chunk of sales on Flipkart and Amazon saw users opting for Both Flipkart and Amazon managed to add news users during the past week. Tiwary said 85% of their new users came from tier II and tier III towns, while Krishnamurthy said the sale contribution of non-metro cities went up by 5%. “We have seen 50% of our categories doubling their sales and fashion, grocery saw purchases from new users on the platform,” Tiwary said.