Morning Scan: All the big stories to get you started for the day

Below is a shortlist of all the important articles from newspapers.

Twitter failed to comply with new IT rules: Prasad

Minister for Electronics and Information Technology Ravi Shankar Prasad said that Twitter has “failed to comply” with the new Information Technology Rules, which came into effect from May 26, reports Business Standard.

What it means: This may mean that the microblogging platform can no longer claim legal defence under the safe harbour provisions of the IT Act.

It will now be exposed to legal liability, of both civil nature and criminal nature.

The Minister added that Twitter was given multiple opportunities to comply with the new rules, but has not done so. “Twitter has not ceased to be an intermediary.”

Major social media intermediaries have shared details as required under the new IT Rules, 2021, except Twitter, which is yet to send in details about its chief compliance officer.

Policy tweaks likely to push local goods on e-platforms

The Centre may tighten the ‘country of origin’ norms for e-commerce players, says Business Standard.

What it means: It is in a bid to push the sale of locally produced goods on their platforms.

E-tailers may have to suggest alternatives before products are purchased by consumers.

They will have to rank goods on their portals.

Changes to be made via amendments to the Consumer Protection Rules.

Ecommerce policy expected to be finalised by end of June.

Didn´t expect flood of cases: Sahoo

Around 200 insolvency resolution applications have been filed since the suspension on provisions of the Insolvency and Bankruptcy Code (IBC) ended on March 24, Business Standard reports, quoting M S Sahoo, chairman of the Insolvency and Bankruptcy Board of India (IBBI).

What it means: He also said that not many applications had been filed under the pre-packaged scheme brought in for MSMEs.

Sahoo said the reason for the fewer applications was the increase in the default threshold to ₹ 1 crore.

And also the availability of other options such as moratorium available to firms.

“People know that if they start the process and there is no resolution, the company will go into liquidation,” he said.

Leisure chains start to shrug off Covid blues

Hills, wildlife sanctuaries and beaches have once again become the go to places for vacationers as states unlock after a stringent lockdown, says Business Standard.

How it is important: With that, hotels in leisure destinations, particularly hills, are back in demand.

The latest trend of revenge travel coincides with many states including Maharashtra and Delhi easing the Covid19 norms.

Some states such as Himachal Pradesh have also relaxed the RT-PCR test requirement for travel.

Over the past fortnight, five-star hotel chains including ITC Hotels, Indian Hotels, and premium boutique brand like The Postcard Hotel have seen occupancy touching the optimum level across many properties.

Some have even been able to sell out completely.

Owing to the high demand, hotels´ average daily rates (ADRs) have crossed the 2019 levels.

Mazagon Dock puts ₹ 2K cr greenfield capex on hold

With economic disruption continuing due to the Covid19 pandemic, Mumbai-based Mazagon Dock Shipbuilders Ltd has placed its ₹2,000crore greenfield capital expenditure plan on hold, Business Standard reports.

What it means: There is no clear visibility in terms of orders.

So, capex at Nhava Sheva can be considered on hold, said Sanjeev Singhal, director (finance) at Mazagon Dock Shipbuilders

However, the company plans to continue with its annual maintenance capex of ₹ 100 crore for FY22.

The company was planning to develop a dockyard for merchant ships on a 37 acre land it owns adjacent to Nhava Sheva port in a bid to diversify its order books, which currently are dependent only on the Indian Navy.

HDFC Bank draws up plan to regain credit card market share

With the RBI barring it from issuing new credit cards, HDFC Bank says it is laying the groundwork for getting back to the market “with increased rigour”, once the embargo is lifted, Business Standard reports quoting Parag Rao, country head, a payments business and in charge of technology transformation and digital agenda of the bank.

Why it is important: HDFC Bank remains the leading player in credit cards, but other players have been gaining market share at its expense in the past few months because of the RBI action.

Parag Rao adds: “We have been sourcing liability customers aggressively over the past six months.

We have a full set of customers preapproved and pre-scrubbed.

As soon as things open up, we will be back with a bang.”

Remove vitamin A from national supplement policy: Experts

Nutrition experts have called for a policy change at the national level on vitamin A supplementation, reports The Times of India.

What it means: Experts say vitamin A deficiencies in children are no longer a public health problem in India.

They argued that vitamin A supplementation may lead to excess dosage of vitamin A or hypervitaminosis.

The study suggests that the national prevalence of vitamin A deficiency risk is below 20% in children in India.

“It’s high time the mega-dose of vitamin A is revised and a targeted state-based vitamin A supplementation program was taken up,” the report says.

Fuel, power see demand rebound

India’s fuel and power demand bounced back in June, says The Times of India. Petrol consumption posted a monthly growth of 15% and diesel 12% in the first fortnight of June.

How it is important: States lifted curbs on the back of declining Covid-19 cases across the country.

Consumption of diesel, a proxy for economic activities, had posted a monthly fall of 16% and petrol 17% in May as the second Covid-19 wave prompted lockdowns in states, especially the industrialised ones.

Power consumption rose 9% to roughly 56 BUs (billion units) during the fortnight under review from a low base of 51 BUs in the year-ago period as early onset of monsoon and lower industrial activities crimped demand. Consumption had recorded a monthly decline of 7% in May.

Jet fuel consumption during the first half of June was sequentially down 17% from the same period of May and 13% lower than a year ago.

India Inc pins its hopes on jabs, rain, sentiment

Indian business leaders seem hopeful of an economic recovery led by more and more employees getting fully vaccinated, a good monsoon and consumer sentiment improving as the festive season begins from August-September, says The Economic Times report.

How it is important: As many states relax lockdowns, there is a rise in economic activity, particularly discretionary spending on cars, consumer appliances, travel, apparel and jewellery, among others.

Companies say that if India administers 8 million vaccines a day by July and increases rural health support, prospects for the economy will improve dramatically.

Several corporate chieftains ET spoke to said the government has conveyed to leading industry bodies that it will lend support to ensure economic growth through appropriate policies and easing regulations around vaccinations.

Some business leaders say government spending on infrastructure projects and housing is expected to pick up post monsoons, while construction activity by private builders will rally from September.

Industry officials say government support in terms of stimulus, aggressive vaccination drives and preparing for a possible third wave by improving medical infrastructure will reduce fear in the community and promote economic recovery.

The festive season will see accelerated growth and be a key indicator of economic activity.

DLF considering rental waiver for retailers

DLF said it is considering waiving store rentals in its shopping malls for the period of the recent lockdown, says The Economic Times report.

How it is important: It will provide relief to retailers, just as it did in the wake of the first wave of Covid-19.

Mall owners have incurred a loss of about ₹3,000 crore during the ongoing second wave of Covid-19 over the past eight weeks.

Industry executives said retailers are hoping that other mall operators would emulate DLF and extend a helping hand.

Business is expected to recover faster this time than it did after the lockdown last year.

Negotiations between mall operators and tenants on rental waivers for the lockdown period have begun as most of the states have allowed the reopening of malls.

ICICI to lend more to cos on recovery hopes

ICICI Bank, which has been cautious on bulky corporate lending, is beginning to increase exposure to companies as it believes that balance sheets in the private sector will also grow when the post-Covid recovery gathers momentum, says The Economic Times quoting Executive Director Vishakha Mulye.

How it is important: The bank expects corporate demand also to pick up in the next economic cycle. “For India to grow faster post the pandemic, both investment and consumption demand will have to fire. We believe that corporate demand will pick up,” Mulye said, without elaborating on the magnitude of growth.

The bank has doubled the number of current accounts in the last year.

Corporate loans constitute 45% of the bank’s ₹7.33 lakh crore loan book.

On Wednesday, it launched a new digital banking product that will provide transaction services, credit facilities, advisory and M&A services for companies and their vendors.

The bank will also offer savings bank accounts to the company employees which will help it build its deposits.

Mulye said the new comprehensive digital offering will help the bank connect with companies, their vendors, and also employees, providing it with valuable information to assess the financial health of their clients besides multiplying business opportunities.

Govt eyes dividend windfall from PSUs

The government is set to see a dividend windfall thanks to its holdings in public sector undertakings, Mint reports.

What is means: It will bring welcome relief to a treasury that has taken a massive hit from two waves of the coronavirus pandemic.

Data from PSUs shows that not only have dividends increased to at least a five-year-high but aggregate net profits of these companies have also risen.

The government has mopped up ₹26,104.37 crore as dividend from 23 listed PSUs in FY21 so far, a 123.63% increase over the previous fiscal year.

This is welcome news for the government, as additional dividend income will help it manage its financial needs better in the pandemic when the government’s tax revenue has seen a drop even as expenditure mounted to fight the virus.

Economy turns the corner in June

How it is important: But the subdued consumer sentiment is expected to limit the pace of recovery.

This comes as states gradually ease curbs on business activity, keeping in mind the decline in the number of fresh covid cases.

The week ended 13 June was at least the third consecutive week in which economic activity sequentially gained momentum.

The revival is led by a strong revival in mobility indicators and higher power demand.

Weak demand takes sheen off yellow metal

The price of physical gold has declined in the last five days, Mint reports.

What it means: Raising doubts in the minds of investors who had bought into the yellow metal when prices were 20-25% below last year’s peak.

The reasons: Fall in global prices, stronger rupee and weak demand amid continuing local curbs.

The marriage season has gone for a toss.

Shops are shut because of extended lockdowns.

The correction is intermittent.

Shortage of raw material delays local production of Novavax jab

Despite diplomatic interventions by India, the Serum Institute of India (SII) is yet to receive raw materials from the US needed to produce the Novavax vaccine, says Mint report.

How it is important: The delay will hit India’s massive push for vaccination.

The delay in receiving raw materials such as bioreactor bags and enzymes means that SII’s launch of the Novavax vaccine, branded as Covovax in India, will not likely happen before September this year as planned originally.

EaseMyTrip sees travel picking up as cases fall

Online travel portal EaseMyTrip (Easy Trip Planners Ltd), which went public in March, hopes bookings to pick up as more people get vaccinated, co-founder and executive director Prashant Pitti said in an interview with the Mint.

How it is important: It shows a revival of the sector.

Booking numbers are picking up dramatically.

The firm expects people to spend more on travel when things are looking up.

“We are hopeful about the government’s vaccination policy,” Pitti said, adding that bookings increased by at least three times in the last few days compared to mid-April.

The company is bullish about what is going to happen over the next few months to an extent that they have started hiring.

Excess early rains boost sowing trend

A bountiful monsoon has bolstered the sowing of a range of kharif or summer-sown crops, which is progressing at a quicker pace compared to the previous two years, Hindustan Times reports.

Why it is important: It is likely to keep farm growth on track and help tame rising inflation, a major concern across economies, including India.

The government expects a third straight year of record harvests.

Early monsoon rains have boosted the sowing of crops such as rice, cotton, soybean, maize and pulses.

Bountiful farm output and a normal monsoon will keep a lid on the prices of foods that don’t need to be imported.

Poorer households tend to spend more on food as a proportion of their monthly budgets than on other items.

The June-September monsoon covered two-thirds of the country a fortnight earlier than usual on June 13.

Robust farm output is key to the Indian economy because nearly half of all Indians depend on a farm-derived income.