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KOLKATA | WEDNESDAY, 29 JULY 2020

GOProllsout$1-trnCovid-19reliefplan

GoogledatacabletolinkUS,UK& Spain

SenateRepublicanspresentedtheir$1trillionplantobolsterthepandemic-ravagedUSeconomyinaseriesofbillsthatwouldtrimextraunemploymentbenefits,send$1,200paymentstomostAmericansandshieldbusinesses,schoolsandotherorganizationsfromlawsuitsstemmingfromcoronavirusinfections.

ThepackagewaspulledtogetherafterdaysofnegotiationsbetweenSenateRepublicansandPresidentDonaldTrump’semissariesthatdidn’tcompletelysettledifferenceswithintheGOPoverthesizeandscopeofadditionalfederalspendinginresponsetothepandemic.“Wehaveonefootinthepandemicandonefootintherecovery,”SenateMajorityLeaderMitchMcConnellsaidMondayontheSenatefloor,notingtherisingdeathtollandafragileeconomicrecovery.“TheAmericanpeopleneedmorehelp,theyneedittobecomprehensive,andtheyneedittobecarefullytailoredtothiscrossroads.” ThebillintroductionswerejustthefirststeptowardnegotiatingacompromiseplanwithDemocrats,who’veofferedtheirown$3.5trillionstimulusplan. BLOOMBERG

Alphabet’sGooglehascommissionedanewsubseacable,whichitsayswillbeoneofthefirstnewfiberlineslinkingtheUSandtheUKsince2003andfurtherentrenchesthetechgiantinglobalinternetinfrastructure.

Thecable,namedGraceHopperafterthecomputerscientist,willalsoconnectto

Spain,becomingthefirstGooglefiberlinetolandthere,thecompanysaidinastatement.It joinsexistingGooglesubseacablesincludingGoogle’sCurie,whichrunsfromtheUStoChile,andDunant,whichlinkstheUStoFrance,andEqui-ano.TheMountainView,California-basedcompanyexpectstocompletetheprojectin2022.Asteadystreamoftrans-oceancablesisbeingannouncedbytechgiants;FacebookjoinedforceswithtelecomcarrierstobetterconnectAfricainMay.

“Oncecommissioned,theGraceHoppercablewillbeoneofthefirstnewcablestoconnecttheUSandUKsince2003,increasingcapacityonthisbusyglobalcrossroadsandpow-eringGoogleserviceslikeMeet,GmailandGoogleCloud,”saidBikashKoley,vice-presidentofGoogleGlobalNetwork, inablogpost. BLOOMBERG

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Former MalaysianPM gets 12-yr jailterm in 1MDB case

AMalaysia court sentenced formerprime minister Najib Razak to 12yearsimprisonmentafterrulinghimguilty in the first of a series of trialslinked to 1MDB.

Najib was guilty Tuesday of allseven charges in the case involving42 million ringgit ($10 million) offunds deposited in his personalaccounts from a former unit of1MDB.His lawyerhassaidanappealagainsttherulingisacertainty,whileseekingtokeephimoutof jailduringtheappealprocess.

HighCourt JudgeMohdNazlanMohd Ghazali sentenced him to 12years in jail for one count of abuseofpower,aswellas 10yearseachforthree charges ofmoney launderingand three criminal breach of trustcharges, to be served concurrently.

He must also pay a fine of 210 mil-lionringgit.The judgetoldthecourthe found “the defense has not suc-ceeded in rebutting the presump-tion on the balance of probabilitiesor raising reasonable doubt on thecharge against the accused” as hedeliveredhis judgmentontheabuseof power charge. Theverdict comesdays after Malaysia resolved settle-ment talks with Goldman SachsGroup Inc. over the bank’s role inraising funds for 1MDB duringNajib’s timeasprimeminister.

BLOOMBERG

Mitsubishi todiscontinuePajerofromnextyear

McD’s revenue falls30%aslockdownlimitsoperations

Intel begins reset, chiefengineerousted

McDonald’sonTuesdayreportedabigger-than-expecteddropinglobalsame-storesalesasrestaurantsacrosstheworldwereshutbecauseofthepandemic, limitingoperationstoonlydrive-thruanddelivery.Globalsame-storesalesfell23.9percentforthesecondquarterendedJune30,draggeddownbybiginternationalmarketsincludingtheUK,FranceandLatinAmerica.Revenuefell30.5percentto$3.76 billion,butbeattheestimateof$3.68billion. BLOOMBERG

IntelCorp’sChiefEngineeringOfficerMurthyRenduchintalaisdeparting,partofamoveinwhichakeytechnologyunitwillbeseparatedintofiveteams,thechipmakersaidonMonday.Intelsaiditisreorganisingitstechnology,systemsarchitectureandclientgroup.ItsnewleaderswillreportdirectlytoCEO BobSwan.

REUTERS

REUTERSTokyo,28July

Shares of Japan’s MitsubishiMotorsCorpplungedmore than10per cent to anall-time lowonTuesday after the automakerposted dismal sales in its keySoutheast Asian market andforecast a huge loss for thisfinancial year.

Adayearlier,MitsubishiMotors,a juniormemberof theautoallianceofNissanMotorandRenaultSA,projectedanoperating lossof140billionyen($1.33billion) for theyear

endingonMarch31,2021,dueinpart tothecoronaviruspandemic.

Itwouldbetheautomaker'sbiggest loss inat least 18years,accordingtorecordsdatingbackto2002.Mitsubishi’sshares fellmorethan10percent to240yen,markingalifetimelowsincetheir 1988listing.

Thecoronaviruscrisishasexacerbatedstrugglesat thecompany,whichhadalreadybeenbattlingfallingsales inChinaandSoutheastAsia,amajormarket thataccounts for

aquarterof itssales.Announcingarestructuring

planonMonday,MitsubishiMotorssaid itwouldstopmakingthePajeroSUVcrossovermodelnextyear,andclosetheplant inJapanthatmakes it. Italsosaid itwouldreduceitspresenceinEuropeandNorthAmericaandfocusongrowinginAsia.Therestructuringplanisdesignedto lift thecompany'soperatingprofit to50billionyenin2022/23andboostoperatingmarginto2.3percent from-9.5percentnow.

Japan’sNo.6automakeranticipatesanoperatinglossof $1.33bn

Aworkermakes a final inspectionof an engine forPajero at amanufacturingunit in Japan’sGifu PHOTO: BLOOMBERG/FILE

NajibRazakwasfoundguiltyofcorruption,moneylaundering;fined$50million

PfizerandBioNTechstart late-stagestudyof leadCovid-19shot

LockdownextendedinBengal

PfizerandBioNTechSEsaidthey’vebegunalater-stagetrialfortheirtopcoronavirusvaccinecandidateandsetagoalofsubmittingitforregulatoryreviewassoonasOctober—oneofthemostambitioustimelinestodate.ThemovepushestheNewYork-basedpharmaceuticalgiantanditsGermanpartnerclosertobringingavaccinetomarket,andplacesthemalongsidefrontrunnerslikeModernaInc,whichanno-uncedearlierMondaythatithadstarteditsownlarge,final-stagetrialofashotbasedonsimilartechnology.

PfizerandBioNTechsaidthattheyhadselectedaleadvaccinecandidatefromwithinabroaderdevelopmentprogrammeandwillproceedwithalater-

stagesafetyandefficacytrialoftheexperimentalshotinatwo-doseregimen.TheannouncementcameinanticipationofPfizerreportingsecond-quarterearningsonTuesday.

Governmentsaroundtheworldarenowlookingtolockupsuppliesofthestill-experimentalcandidates.

Eachhashopesofstabil-isinglocaleconomiesandstoppingspreadofthevirusthat’stakenmorethan650,000livesglobally.Lastweek,PfizerandBioNTechclincheda$2billiondealtosupplyaninitial100milliondosesofavaccinetotheUS.Thatsetapriceceilingoflessthan$20perdose,whichwilllikelyimpacthowmuchotherswillcharge.

BLOOMBERG

WestBengalChiefMinisterMamataBanerjeeannouncedonTuesdaythatthelockdowninthecontainmentzonesofthestatewillcontinuetillAugust31asalsothebiweeklyrestrictionsinplacetocheckthespreadofthecoronavirusdisease.BanerjeesaidschoolsandcollegeswillremainclosedtillAugust31."ThelockdownincontainmentzoneswillcontinuetillAugust31.Thebiweeklytotallockdownacrossthestatewillalsorem-aininplacetilltheendofne-xtmonth,"Banerjeesaid.Totallockdownwillbeimp-osedonAugust2,5,8,9,16,17,23,24and31,shesaid. PTI

ThierryBollorétakesthewheelatJLRSHALLY SETH MOHILEMumbai,28July

TataMotorshasappointedThierryBolloréaschiefexecu-tive officer (CEO) of Jaguar Land Rover, following a six-month search. Bolloré, 57, who was Renault Group CEO

till October 2019, will take charge onSeptember 10. He will succeed Ralf Speth,who was at the helm for a decade. Spethwill now take up the role of non-executivevice-chairman, and remain on the TataSons board. The Tata group flagship haschosen theFrenchmanovera few internalcandidates,whowerevyingfor thetop job.“I am delighted to welcome Thierry toJaguar Land Rover. An established globalbusiness leader with a proven track recordof implementing complex transformations,

Thierrywillbringawealthofexperiencetooneof themost reveredpositions in the industry,”saidNChandrasekaran,chairman,TataSons.

FelipeMunoz,senioranalystatJATODynamics,UK,saysBolloré’smainstrengthisthatheprovedinRenault,thathecanrunacompanythroughdifficulttimes.He’sgoodatdealingwithgovernmentissuestoo."ThesetwostrengthsareexactlythethingsthatJLRneedsrightnow.

Tobetterfacetheuncertaintimesahead,andtofindwaysofinvolvingUKgovernmentinthesolution,”saysMunoz.

Bollorétakeschargeatatimewhenautodemandremainsunderpressure,followingtheeasingoftheshutdownmeasuresthatweighedoneconomiesaroundtheworld.JLRwasonroughterrainevenbeforethepandemic,sufferingfromasalesdownturn,theBrexituncertainty,stricteremissionnormsaffectingitssportutilityvehiclesegment,andadipinexportstoChina—oneofitsbiggestmarkets.

“ThemostimportantthingforJLRistogetitscostacttogether.Therefore,thetop-mostpriorityofthenewCEOshouldbetostayoncourseforcostreduction,anddrivethecompanytowardsfreecashflows,”saidMahanteshSabarad,head(retailresearch),atSBICAPSecurities.

JLRhasembarkedonacost-cuttingdriveaimedatsaving£5billion($6.4billion)andreversingrecordlosses.PriortojoiningRenaultin2012,BolloréhadstintswithtyremajorMichelin,aswellasFaurecia,agloballeaderinautomotivetechnology.

AformerNo.2atRenault,BollorésecuredthetopjobafterthearrestofCarlosGhosnin2018.HewasoustedwhentensionswithpartnerNissanMotorpeaked,lastOctober.RenaultChairmanJean-DominiqueSenardhadthensaidthatBolloréhadtogofortherelationshipwithitsJapanesepeertorevive.Amidslowingglobalgrowth,increasedregulatorychanges,andthepandemic,JLRisexecutingaturnaroundandtransformationplantodeleveragethebusinessanddrivepositivecashflows,forwhichBolloré’strackrecordmaycomeinhandy.

Draft 2.0: Import ban on specific armsAJAI SHUKLANewDelhi,28July

T heMinistry of Defence (MoD)on Tuesday issued a seconddraft of the DefenceProcurement Procedure of 2020(DPP-2020) and solicited commentsbyAugust 10, fourmonthsafter itputout the first draft of the newmanualthat will supersede and update thecurrentDPP-2016.

“Based on inputs received fromthe environment, DPP-2020 has nowbeen titled as Defence AcquisitionProcedure (DAP) 2020,” stated theMoD. Driving this terminologicalchange is the conviction that thepol-icy should look beyondprocurement(purchase)ofequipmentandprovidefor alternatives such as leasing andupgrading.

The draft DAP-2020 retains thefirst draft’s emphasis on promotinghigher indigenous content in equip-mentmanufactured in India, includ-ing under licence from foreign ven-dors.Formostacquisitioncategories,theDAP-2020willdemand10percenthigher indigenisation than underDPP-2016. (see graphic)

For thefirst time, theMoDpropos-es to incorporate into official policy aban on import of specific kinds ofweapons andplatforms.

“Withaviewtopromotedomesticand indigenous industryasalsoaligntheDAPwith the reformsenunciatedintheAtmanirbharAbhiyan(self-reli-ance campaign), the MoD will notifya list of weapons/platforms bannedfor import, updated from time totime,” the draft states.

It is unclear whether this “noimport list” will be aligned with theMoD’s Defence Production Policy(DPrP) of 2018, whichmandates self-reliance by 2025 in the production ofhelicopters, fighteraircraft,warships,

tanks, andmissiles.DPrP-2018 also stipulates raising

exports to $5 billion annually by2025, andproducing goods and serv-ices worth $26 billion to createemployment for 2-3 million people.

The MoD has also introduced anewprocurement category, entitledBuy (Global — Manufacture inIndia). This stipulates indigenisa-tionof at least 50per cent of the con-tract value of a foreign purchasebought with the intention of sub-sequently building it in India withtechnology transfer.

Meeting this would require ven-dors to supply only the minimumnecessary numbers from abroad inready-built condition, while man-ufacturing a larger share in India.

The category also allows vendorsto meet the indigenous contentrequirement through manufactur-ing spares and assemblies, or setting

up maintenance, repair and over-haul (MRO) facilities for the equip-ment, including through the foreignvendor’s subsidiary in India.

The draft DAP-2020 details theprocedures for “leasing” of equip-ment and platforms. Leasing isexpected to save money by permit-ting the military to rent back-upequipment and services, such as airtransport, mid-air refuelling,MRO and simulator training, ratherthan incur huge capital outlays inbuying outright.

In addition to a full new chapteron “leasing”, the draft DAP-2020also incorporates a new chapter forprocuring equipment andplatformsbased on software and informationand communications technology(ICT). Given the rapid obsolescenceof ICT-based systems,more flexibleprocurement processes are neededto keep up with change.

Another new chapter deals with‘post-contract management.” Thislays down guidelines and processesfor issues that arise during the con-tract period, which typically last forseveral decades in defencecontracts.

While aiming at speedinguppro-curement, the new procedure mar-ginally slows the Fast TrackProcedure, which is designed foremergency purchases. DPP-2016mandated amaximumperiodof 112-169 days for concluding a contract,including the time for trialevaluation. DAP-2020 stipulates aslightly longer period of122-231 days. In both cases, deliveryof equipment would take another3-12 months from the date of con-tract signing.

The new procedure is beingdrafted by an MoD committeeheaded by its acquisitions chief,Apurva Chandra.

India’s first batchofRafale fighter jets being re-fuelledmid-air fromaFrenchAir Force tankerbefore theirscheduled stopover at theAl-DhafraAirBase in theUnitedArabEmirates PHOTO: PTI

RAFALES RE-FUELLED MID-AIR ON WAY HOME

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Vistaraplans flightstoEurope inAugustJoining the repatriationefforts to bring Indiansstranded abroad, Vistaraplans to operate flights toLondon,Paris,andFrankfurtfrommid-August.

Theflightswouldbeoper-ated from Delhi under thetravel bubble and wouldmark a milestone inthe airline’s growth.

Buildinganinter-national medium-haul network hasalways beenVistara’s strat-egy. Plans were drawntolaunchflights toLondon,Tokyo, and Moscow in thesummer schedule, but thepandemichad forced it to goslow.Now, theairline is look-ing to operate scheduledflights to Europe, with theproposedinductionofitssec-ond Boeing 787-9 aircraftnext month. Currently,Vistara has 42 aircraft, while

the second Boeing 787-9 air-craftwill arrive inAugust.

Vistara has filed for slotsatDelhiairportandhasstart-edtraining itspilotsas itpre-pares for theoperations.TheDelhi-London flight is beingplanned from mid-August,while Paris and Frankfurt

servicewillbe launchedinlate August and earlySeptember.

“Vistara hasaround20pilots forits 787 operations,each of them with

over 500-600 hours offlying experience. A few

more pilots are undergoingtraining and this will allowtheairlinetooperateboththeplanes to Europe bySeptember,” a source said.“Updates with regards tointernationaloperationswillbeprovidedatanappropriatetime,” Vistara said in anemail. ANEESH PHADNIS

ILLUSTRATION: BINAY SINHA

MumbaiseeslowestdailycasesOnly700newCovid-19caseswere reported in Mumbaitoday that toowith thehigh-est single-day testing tilldate, said MaharashtraCabinet Minister AadityaThackeray onTuesday.

He said a total of 8,776tests were conducted onTuesday, out of which only700testswerefoundpositivein the financial capital,newsagencyANI reported.

"Thegoodnews:Only700cases today in Mumbai andthattoowiththehighesttest-ing till date in Mumbai in asingle day (8,776).This ischase the virus in full capac-ity. A major relief after threemonths," said Thackeray, inatweet,onTuesday.AGENCIES

Acquisition category Indigenous content (IC)

Buy (Indian – Indian-Designed, Indigenous design essential;Developed and Manufactured) ≥50% ICBuy (Indian) If indigenously designed,≥50% IC; if

foreign designed≥60% ICBuy and Make (Indian) ≥50%IC,calculatedonthe ‘Make’portionBuy and Make ≥50% ICBuy(Global-Manufacture in India) ≥50%ICBuy (Global) Foreign vendor — Nil IC requirement

Indian vendor≥30% IC

INDIGENISATIONTARGETS FOR

VARIOUSACQUISITIONCATEGORIES