SC extends deadline to join EPF pension scheme, quashes Rs 15,000 threshold for additional contribution

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Supreme Court on Friday upheld the Employees Pension (Amendment) Scheme 2014’s provisions as legitimate and valid. However, the apex court quashed the condition in the 2014 scheme that employees are required to make a further contribution at the rate of 1.16 percent on the salary exceeding Rs.15,000.

The Court held this condition to make additional contribution on the salary exceeding the threshold limit to be ultra vires (beyond the powers). However, this part of the judgment has been kept in suspension for six months to enable the authorities to generate funds.

The Supreme Court read down some of the provisions of the Employee’s Pension (Amendment) Scheme, 2014 while granting the appeals brought by the Employees Provident Fund Organisation (EPFO) and the Union Government in opposition to the rulings of the Kerala, Rajasthan, and Delhi High Courts that had invalidated the scheme.

The SC also held that employees who were eligible to join the pension plan but were unable to do so because they did not exercise their option by the deadline should be given another chance because the deadline was not clearly defined in light of the High Court rulings that declared the provisions of the Employee’s Pension (Amendment) Scheme, 2014 invalid.

In order to extend the deadline, the Court used its authority granted by Article 142 of the Constitution.

A bench comprising Chief Justice of India Uday Umesh Lalit, Justices Aniruddha Bose and Sudhanshu Dhulia had reserved the judgment.

In 2018, while setting aside the Employee’s Pension (Amendment) Scheme, 2014 ], the Kerala High Court allowed paying pension in proportion to the salary above the threshold limit of Rs 15,000 per month. The High Court also held that there can be no cut-off date for joining the pension scheme.

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Starbucks co-founder Zev Siegl enjoys filter coffee masala dosa, at iconic Vidyarthi Bhavan in Bengaluru

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Zev Siegl, the co-founder of Starbucks, recently visited Bengaluru’s iconic Vidyarthi Bhavan to indulge in some local food. Siegl was in the city to attend an investors’ conference and stopped by at the restaurant to savor in some masala dosa and filter coffee. Siegl also left a note for the eatery, about his “good experience”.

“It was an honour to enjoy your famous food, coffee and warm welcome, I will take this wonderful experience with me back to Seattle,” read Siegl’s note, that Vidyarthi Bhavan shared on Instagram.

Siegl, who now works as a start-up consultant, was in Bengaluru to attend the Global Investors Meet 2022. He co-founded the international coffee chain in 1971 and served as Vice President and director until 1980, when he left the company.

The iconic restaurant said that they were “happy and proud” to have hosted Siegl.

We were happy & proud to have Mr. Zev Siegl, #Cofounder of #Starbucks at #VidyarthiBhavan today evening. He enjoyed our #MasaleDose & #Coffee. He is now in #Bengaluru as a participant in the #GlobalInvestorsMeet2022 to share his entrepreneurship insights.

#GIM2022 #Karnataka pic.twitter.com/JXgFBDUde7

— Vidyarthi Bhavan (@VidyarthiBhavan) November 3, 2022

This isn’t the first time that the iconic restaurant has hosted a special guest. Famous for its “masala dosae” (South Indian snack), the restaurant is a hotspot for political leaders, literary icons, students, and working professionals.

Recently, after Rishi Sunak took charge as the Prime Minister of the UK, the restaurant shared a picture of Sunak from his visit in 2019. According to the managing partner of the restaurant Arun Adiga, Sunak’s wife Akshata Murthy and her parents, Infosys co-founder Narayana Murthy and Sudha Murthy were regulars at the restaurant, the Indian Express reported.

#RishiSunak is going to become the next PM of UK.
Happy to know that he will be the first Indian-origin & the youngest British Prime Minister.
We wish him good luck & may he become the most successful PM of UK by sailing through all the turbulence pic.twitter.com/JhWLtcVTu2

— Vidyarthi Bhavan (@VidyarthiBhavan) October 24, 2022

Vidyarthi Bhavan, which was started in 1943-44 as a canteen for students, has become a beloved landmark in Bengaluru for local food.

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Govt eyes Coal India, NTPC, Hindustan Zinc and RITES offers for sale over next four months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government plans to bring four important offers for sale or OFS issues over the next four months as part of the government’s divestment plans, people in the know told CNBC-TV18 on Friday.

The PSUs include names like Coal India, Hindustan Zinc, NTPC as well as Rail India Technical and Economic Service (REITS). The total divestment from these four companies via the OFS issues could help the government raise about Rs 18,000 to Rs 20,000 crore.

For the 2022-2023 financial year, the government has set a divestment target of about Rs 65,000 crore out of which Rs 24,000 crore has been achieved so far.

Of the four companies, Coal India OFS is expected to be around Rs 5,000 crore, which could dilute about a 3 percent in government stake in the firm. In Hindustan Zinc, it’s about Rs 10,000 crore that could lead to a dilution of about 8 percent of the government’s stake, sources said.

They added that NTPC OFS is likely to be about Rs 2,500 crore, which may lead to the dilution of the government’s about 1.5 percent stake in the company. RITES is likely to launch an OFS worth Rs 1,000 crore, which shall dilute up to 10 percent stake of the government in the company.

CNBC-TV18 is yet to receive a response to a query sent to the Department of Investment and Public Asset Management (DIPAM).

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Gujarat polls: Where does Congress stand in 2022 — A SWOT analysis

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Congress, once a dominant political force in Gujarat, has lost the six previous Assembly elections in a row to the Bharatiya Janata Party since 1995 and hopes to regain past glory.

It had given a tough fight to the BJP in 2017 winning 77 of the 182 seats at stake. The BJP had bagged 99 seats.

With only two states — Rajasthan and Chhattisgarh — in its kitty, the Congress is desperate for a victory in Gujarat in the next month’s Assembly elections.

Gujarat along with Himachal Pradesh will also be the first major test for the new Congress chief Mallikarjun Kharge, the first non-Gandhi leader in 24 years to occupy the party’s top post.

Here is a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the Congress in the home state of Prime Minister Narendra Modi and Home Minister Amit Shah.

STRENGTHS

Expected support from Congress’s traditional voter base — the OBCs like Thakor and Koli communities, Scheduled Castes, Scheduled Tribes and Muslims.

Despite losing to BJP six times in a row, the party has steadily maintained around 40 percent vote share.

Can give the BJP a tough fight if it focuses on the KHAM (Kshatriya, Harijan, Adivasi and Muslim) votes and also manages to get the support of the disgruntled Patel community.

The KHAM combination of castes and communities was devised as a winning formula by former Gujarat chief minister Madhavsinh Solanki and has worked for the Congress in the past.

WEAKNESSES

The dearth of strong leaders at the state level.

Factionalism and infighting in the state unit.

There are 66 urban and semi-urban seats that Congress has not been able to win in the last 30 years in Gujarat.

With the central leadership of the party preoccupied with Rahul Gandhi’s Bharat Jodo Yatra, the state unit is virtually left to fend for itself.

Over the last 10 years, many Congress leaders have deserted the party and joined the BJP. They include Patidar leader Hardik Patel and 16 Congress MLAs (between 2017 and 2022).

OPPORTUNITIES

Congress can take solace from the fact that BJP’s seat tally has been going down in each Assembly election in Gujarat since 2002.

Aggressive campaigning by the Aam Aadmi Party (AAP) in Gujarat as Congress leaders feel Arvind Kejriwal’s party will damage the urban vote bank of the BJP more than the rural vote bank of the Congress.

Congress leaders hope its silent work in villages will yield dividends. Prime Minister Narendra Modi had last month cautioned BJP workers against the Congress’ “silent” campaigning in Gujarat.

THREATS

The ‘Modi factor’ that can give the BJP an edge again over rival parties.

Vigorous attempts by the AAP and the All India Majlis-e-Ittehadul Muslimeen (AIMIM) to eat into the support base of the Congress.

Likelihood of more people leaving Congress if it loses the elections.

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Air purifier sales surge as Delhi grapples with ‘severe’ pollution

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Once a luxury product, air purifiers have increasingly become a necessity as sales surge amid a rise in Delhi’s pollution levels that are now just a notch below the ‘Severe Plus’ category.

According to Central Pollution Control Board data, Delhi’s overall Air Quality Index (AQI) stood at 426 at 9.30 am on Friday. An AQI of above 400 is considered ‘Severe’ and can affect healthy people and seriously impact those with existing illnesses. On Thursday, the 24-hour average AQI stood at 450 at 4 pm, just a notch below the ‘Severe Plus’ category.

Demand for air purifiers has risen in the national capital, particularly after Diwali, which witnessed widespread bursting of firecrackers despite a ban.

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“The air quality in India is deteriorating due to many activities — industrial expansion in cities, population density, improper waste management, crop burning, increased automobile use and a few natural causes. There is evidence that air pollution, both outdoor and indoor, is on the rise and is behind higher morbidity and mortality rates,” said Kartik Singhal, founder of O2 Cure and managing director at Zeco Aircon Ltd.

The spike in air purifier sales reflects the deteriorating air quality levels, he said, adding that buyers from major cities such as Delhi, Gurgaon, and Noida had become more aware and responsible about indoor purification.

“This has led to an increase in the air purifier sector where we have also observed a massive jump in sales during the past few weeks,” Singhal added.

A representative from Mehra Electronics in Khan Market concurred.

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“This is the need of the hour. It is peak pollution time and the sales have seen an increase,” he said.

Market experts said air purifier sales were higher in south Delhi since people living there had higher purchasing power and better awareness.

The appliance has become a necessity now and even doctors are advising patients to use it, said Manish Seth, secretary of the Daryaganj Traders’ Association and the owner of an electronics store.

“Companies have also realised this and reduced the prices. Purifiers that were earlier available for Rs 15,000 to Rs 20,000 are now being sold for Rs 7,000 to Rs 8,000. In some south Delhi stores, the sales are higher because people have better awareness and higher purchasing power. The product is also moving on its own in the online space,” he said.

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Mohit Singh, a sales executive at Atmo Pure in Jangpura, said the cost of air purifiers at their store ranged between Rs 7,000 and Rs 60,000, depending on the technology, the filters used and the coverage area.

“We have seen a sharp rise in demand for air purifiers around this time for the last few years. It is literally the cost of your breath, a health investment as important as your regular health insurance,” he added.

Singh said a larger number of users bought the purifiers for their children and the elderly and invested in equipment with a low maintenance cost.

Nitin Sharma, a senior executive at Global Gadgets Store in Khan Market, said, “As the air quality deteriorated after Diwali, sales have gone up. The sales will go up in the upcoming days.” The store sold 30 air purifier units on Thursday.

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However, buying an air purifier is not enough as it requires maintenance with regular cleaning of the filters to ensure proper functioning.

“People forget to clean the filters and that affects its life span. You should clean the filters every week to ensure longevity for the filter and the machine,” said Parth Ahuja, a purification expert at Dyson.

Many doctors are also recommending patients, especially the vulnerable such as the elderly, children and people with respiratory ailments, use air filters at home and avoid stepping out during early mornings and evenings.

Dr Rahul Sharma, additional director (pulmonology) at Fortis Hospital in Noida, said, “HEPA (high-efficiency particulate) filters work well and we recommend them to patients, especially those who are homebound.

“The purifier works in a limited cubic metre of space. While buying a purifier one should check the capacity of how much air it can purify in accordance with the capacity of your home. Another important thing is that there are HEPA filters and HEPA-like filters, which are not as effective as HEPA filters and are also very expensive.”

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Tata Advanced Systems, GE Aerospace extend $1 billion contract for aircraft engine components

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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GE Aerospace and Tata Advanced Systems Ltd have extended their long-term contract worth USD 1 billion for the production and supply of commercial aircraft’s engine components. The engine parts will be manufactured at the Tata Centre of Excellence for Aero Engines (Tata-TCoE).

“The multi-year long-term contract is valued over USD 1 billion and showcases the growing relationship between GE and TASL in the aerospace industry,” the release said.

Tata-TCoE was established in 2018 to manufacture CFM International LEAP engine components in India after the contract was first signed a year earlier. CFM International is an equal joint venture between GE and Safran Aircraft Engines

“The LEAP engine continues to deliver improved fuel efficiency and asset utilisation for today’s newest commercial narrow-body aircraft, logging more than 23 million engine flight hours since entering service in 2016,” the release said.

Mike Kauffman, Vice-President and General Manager of Purchasing at GE Aerospace, said, “The Tata Centre of Excellence for Aero Engines has grown in scale and importance for us over time and is an excellent showcase of Make in India, for the world.”

“As a leading commercial engine manufacturer, GE has helped us develop critical aero-engine manufacturing processes here in India with support from GE’s engineering team,” Sukaran Singh, Managing Director and Chief Executive Officer of TASL said.

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-With inputs from PTI

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“Yes men” reshuffle in Chinese Communist Party has all the arms targeted at India, Taiwan and Tibet

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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It was when Li Zhanshu, the outgoing chairman of the Standing Committee of the National People’s Congress, pulled documents from Hu Jintao, the former general secretary of the Chinese Communist Party, and tried to conceal them under a red folder that things started getting a little uneasy at the 20th Chinese Communist Party (CCP) Congress. The events became dramatic when Hu — once a prominent face of the Communist Youth League — was forcefully evacuated from the stage. But this incident was just a start before the bigger surprise was unveiled: the reshuffle.

One of the most surprising appointments announced at the CCP was that of Li Qiang at the second rank of the standing committee. “Everyone thought that the second-in-command would be Chen Min’er, who is now the Chongqing Party secretary,” said Kondapalli. He explained that even in the 19th party congress, Chen was supposed to be made a politburo standing committee member, but he didn’t make it.

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No one thought that Li would shake off all the chaos he had created in Shanghai by implementing the grinding zero COVID  policy to become the country’s next premier. “In fact, considering the backlash his policies invited, everyone was thinking that he should resign from the party secretary position in Shanghai,” said Kondapalli.

Commenting on the way through which the Xi-Li equation can achieve success on the global front, especially with Li’s limited international exposure, Kondapalli said that a suggested compromise solution is to make Li vice premier immediately and groom him until the National People’s Congress meets in March. He will continue as premier after the announcement in Congress. “Li Qiang can only be made premier in March and not now,” added Kondapalli.

There were another two important appointments. The first was Wang Huning, an architect of neo-authoritarian policies and scriptwriter for the regimes of Jiang Zemin, Hu Jintao, and now Xi. Experienced Wang is known for all the conservative programmes. For instance, the social credit system. Under this programme, individuals were credited for moral behaviours like helping, greeting, etc. by monitoring them extensively with the help of QR codes, artificial intelligence, and satellites. He is a proponent of such stringent laws.

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The second appointment was of General He Weidong as vice chairman of the Western Theater Command, the largest military command under the People’s Liberation Army (PLA). Konapalli stated, “As a theatre commander, he has gone close to the areas near Doklam and Aksai Chin.” According to him, He is well aware of the ground realities, and that will have a larger impact on India’s security. Along with him, other generals like General Wang Haijiang and General Xu Qiling, who are experts on the Line of Actual Control (LAC), were also promoted.

Xi’s “yes men” selection criteria and possible backlash

Deng Xiaoping, former chairman of the Chinese People’s Political Consultative Conference, had proposed 68 as the age limit for becoming a member of the Politburo Standing Committee to promote young leaders. But all such rules were broken during the selection process. For instance, the Communist Youth League (CYL), a youth movement of the People’s Republic of China for youngsters between the ages of 14 and 28, was not considered in the selection process.

While commenting on the possible backlash from these factions, Kondapalli said, “They will not sit quietly because all of them were removed from the highest decision-making processes.” A well-known leader like Li Keqiang, a hardworking centrist and, in Kondapalli’s words, “the darling of the small and medium enterprises,” was also dropped. Therefore, there will be retaliation, but it will be implicit and not explicit. Hu Jintao’s reaction on the stage stands as a testament to it.

Xi’s speech and an open agenda

Words like “security,”  “safety,”  “national rejuvenation,” and most importantly, “sinicization of religion” were mentioned in Xi’s speech. These words show the continuation of the Chinese president’s agenda against minorities.

“Sinicization of Tibet, sinicization of Xinjiang are the words mentioned for the past two years. I think they will suppress the ethnic minorities further as part of the sinicization of these regions,” mentioned Kondapalli. According to him, sinicization means establishing the dominance of the Han community by replacing the local culture, religion, ethnicity, etc.

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Another noteworthy sentence from Xi’s speech was “the wheels of history are rolling towards China’s unification and rejuvenation.” While explaining if this sentence had certain indications for Taiwan, Kondapalli said, “Unlike Ukraine, Taiwan is a better equipped military power.” Therefore, it won’t be a cakewalk for Xi. The country’s reunification will mean a bloodbath, and Chinese leaders are aware of it.

The way forward

The structural changes announced at the 20th CCP Congress will have wider implications for China’s domestic politics and also for the world. “All loyalists in the Politburo Standing Committee will provide some elbow room for Xi Jinping in terms of policy coordination,”, said Kondapalli. In a nutshell, Xi’s grip over power has become tighter than ever.

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SKF India shares off opening highs even as September quarter profit jumps over 30%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”SKF India” isinid=”INE640A01023″ bseid=”500472″ nseid=”SKFINDIA” sector=”Bearings” exchange=”nse”]

SKF India Ltd. gained as much as 8 percent on Friday before paring most of the gains after reporting healthy earnings for the September quarter.

The company’s net profit climbed 32.5 percent to Rs 155.82 crore from Rs 117.56 crore in the year-ago quarter. Compared to the previous quarter, net profit grew by 20.7 percent.

Consolidated revenue stood at Rs 1,088.42 crore, up 11.6 percent from last year.

SKF India reported EPS (earnings per share) of Rs 31.5 as compared to Rs 23.8 for the year-ago quarter and Rs 26.1 for the previous quarter.

Shares of SKF India have been outperformers in the last year, with the share price jumping by over 29 percent during the period compared with a nearly 1.5 percent rise in the benchmark Sensex. The stock hit a record high of Rs 5,074.2 on 12 September 2022.

Shares of SKF India are trading 2.7 percent higher at Rs 4,519.

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Hero MotoCorp’s profit dips but realisation drives revenue growth — Street cautious

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hero MotoCorp’s revenue grew but net profit slipped for the July to September quarter due to increased expenses and a slight dip in sales, following which investors on Dalal Street turned cautious on the two-wheeler maker’s stock on Friday.

Hero Moto’s shares declined more than 2 percent intraday on BSE even as analysts have given it a ‘buy’ rating.’

Brokerage firm Jefferies has set a target price of Rs 3,000 per share on the stock, noting that the company’s EBITDA for the second quarter of the fiscal fell 3 percent annually but was in line with estimates. The two-wheeler maker’s gross profit per vehicle and EBITDA per vehicle has gone up 7-8 percent sequentially, it pointed out.

Motilal Oswal too has a ‘buy’ call on Hero Moto’s stock saying the two-wheeler’s revenue grew 7 percent year-on-year despite flat volume growth. It said the higher realisation of 8 percent YoY drove the revenue growth.

Even as the company’s gross margin expanded to 28 percent owing to stable commodity costs and price hikes, it was still lower-than-estimated gross margin, leading to EBITDA margins declining 120bp YoY to 11.4 percent.

Niranjan Gupta, CFO Hero MotoCorp, said, “ The global macro headwinds may keep the playfield a bit uncertain, and navigating the same over the next few quarters will be important. However, as the commodities cool off, and the rate cycle reaches its peak, the medium-term outlook for the Indian auto industry appears quite encouraging.”

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He added that consumer confidence is coming back, which augurs well for growth momentum moving forward. According to Gupta, the results reflect financial discipline, focus on cost savings, capital allocation as well as premiumisation of portfolio.

Catch latest stock market updates on CNBCTV18.com’s blog here  

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Rain Industries shares fluctuate even after profit nearly doubles in September quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”Rain Industries” isinid=”INE855B01025″ bseid=”500339″ nseid=”RAIN” sector=”Cement – Major” exchange=”nse”]

Rain Industries Limited reported a significant increase in its profits, revenue, and margin in the September quarter.

The company’s revenue increased by 53 percent while net profit rose by 71 percent year-on-year, compared to the same quarter a year ago.

Net profit stood at Rs 403.22 crore against Rs 235.56 crore for the corresponding period in the previous financial year. However, compared to the previous quarter, profit fell by nearly 40 percent. In the June quarter, profit stood at Rs 668.46 crore.

Rain Industries reported an EBITDA of Rs 978 crore for the September quarter.

Revenue from the Carbon segment increased nearly 67 percent year-on-year despite sales volume declining 4 percent. Average blended realisations increased 73.1 percent due to market quotations and higher raw material prices. The quarter was dominated by an 8 percent depreciation in the Euro and a 7.7 percent strengthening of the USD against the rupee.

Realisations from the advanced materials business also increased 55 percent during the quarter due to changes in energy price, oil related quotations, product and customer mix, offset by the weakness of the Euro against the rupee.

Cement revenue increased 6.4 percent during the quarter led by growth in volumes, which grew 8.2 percent from last year.

Shares of Rain Industries opened higher but gave up all their gains by mid-day trading. The stock is trading 0.8 percent higher at Rs 171.85.

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