Tourists turn their back on Delhi as air pollution reaches record levels

Rising pollution levels is an added problem for Prime Minister Narendra Modi, who is trying to reverse an economic slowdown as he seeks to lure investors to the South Asia nation.

Business travelers and tourists are avoiding New Delhi, as air pollution in India’s capital reached record levels, travel agents said.

Booking inquiries for hotels and flights to New Delhi have slumped since the festival of Diwali on Oct. 27, said Sharat Dhall, chief operating officer of the business-to-consumer segment at Yatra Online Inc. Bursting of firecrackers as part of the festivities worsened pollution caused by farm stubble burning in areas around the capital city.

Business travelers are looking to reschedule their visits to a later date, Dhall said in an email, adding that tourists are preferring Himalayan hill stations and destinations in the state of Rajasthan, home to the Thar desert, over New Delhi, famous for the 12th-century Qutab Minar and the Red Fort, built in the 17th century.

Pollution levels in New Delhi surged to more than three times of what’s considered hazardous over the weekend, increasing the risk of stroke, heart disease and lung cancer. While both provincial and federal governments have taken steps, including limiting private vehicles usage and shuttering factories, they have been unable to stop farmers from burning crop stubble -- smoke from which is the main reason for air becoming a lethal cocktail at this time of the year.

Bookings and travel searches for New Delhi from key international areas including Singapore, Thailand and Qatar have fallen 44 per cent, according to travel website Ixigo. On the other hand, bookings and queries from New Delhi to other destinations have increased 25 per cent, Ixigo said. Last-minute bookings from Delhi to other metros like Mumbai and Bangalore have also surged 20 per cent.

Rising pollution levels is an added problem for Prime Minister Narendra Modi, who is trying to reverse an economic slowdown as he seeks to lure investors to the South Asia nation. Almost 11 million foreign tourists arrived in India last year, government data showed, as Modi’s administration unveiled a campaign to showcase everything from the country’s mountains to deserts and rain forests to wildlife parks.

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Sun Pharma, Britain's AstraZeneca join to distribute cancer drugs in China

The financial terms of the agreement, which has an initial tenure of 10 years, were not disclosed.

Indian drugmaker Sun Pharmaceutical Industries Ltd said on Wednesday it would introduce some of its cancer treatment drugs in China through Britain's AstraZeneca.

This comes after AstraZeneca said it was launching a new fund with China International Capital Corp to invest $1 billion in China's healthcare sector, as it expands its research work in the country.

Sun Pharma will be responsible for development, regulatory filings and manufacturing of the drugs covered in the deal, while AstraZeneca will exclusively promote and distribute the products in China, according to a filing to Indian stock

The financial terms of the agreement, which has an initial tenure of 10 years, were not disclosed.

Drug major Sun Pharma on Saturday said it is discontinuing operations at two clinical pharmacology units in Vadodara (Gujarat) to bring in efficiencies in cost and processes.

"While we continue to make investments in our R&D operations, we also constantly evaluate our resources and future capacity requirements to bring in efficiencies in cost and processes," a Sun Pharmaceutical Industries spokesperson said in a statement.

To ensure optimal utilisation of clinical pharmacology units (CPUs) that conduct bio-equivalence studies, the company is discontinuing operations at two centers at Tandalja and Akota in Vadodara, the spokesperson added.

"The bio-equivalence studies from these centers will be transferred to our other facilities. We are offering full support to the affected employees and helping them with out placement services," the spokesperson said.

Business Standard

Relief for Delhi-NCR as air quality improves to 'very poor' category

Gurgaon, Faridabad, Noida and Ghaziabad too recorded 'very poor' overall air quality.

In a major relief for the residents of Delhi-NCR, the air quality on Wednesday morning further improved. The air quality index in the national capital dropped from yesterday's 365 to 356 at 6:30 am. The Ministry of Earth Sciences' air quality monitor, SAFAR, said, "The AQI is back to 'very poor' category after rapidly recovering from 'severe' largely due to faster boundary layer winds (40 kmph)."

Gurgaon, Faridabad, Noida and Ghaziabad too recorded 'very poor' overall air quality.

An AQI between 0-50 is considered good, 51-100 satisfactory, 101-200 moderate, 201-300 poor, 301-400 very poor, and 401-500 severe. Above 500 is severe-plus emergency category.

The India Meteorological Department said winds gusting up to 25 kmph were flushing out pollutants faster.

"There are good chances of rains in northwest India on Wednesday night and Thursday due to a western disturbance. The precipitation will cover Delhi-NCR, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Punjab, Haryana, Rajasthan and western Uttar Pradesh," head of IMD's regional weather forecasting centre of Kuldeep Srivastava, said.

Taking a grim view of the surge in pollution levels, the Supreme Court on Monday slammed authorities for failing to curb pollution in Delhi-NCR and said they have left people to die.

Passing a slew of other directions to prevent the rise in air pollution levels, it imposed a fine of Rs 1 lakh on anyone carrying out construction and demolition activity in Delhi-NCR, and a fine of Rs 5,000 on offenders involved in garbage or waste burning. The Bench said it had “no sympathy for farmers indulging in it (stubble burning) as they are putting lives of others at risk”.

The odd-even scheme, which kickstarted on Monday has entered Day 3 with only even-numbered non-transport vehicles allowed on Delhi roads. The ruling Aam Aadmi Party (AAP) has claimed that due to the odd-even rule, 15 lakh vehicles have been taken off the road.

Business Standard

Punit Goenka to remain Zee's MD as lenders prepare for share sale

Goenka, who is the elder son of Essel group promoter and Zee chairman Subhash Chandra, has been MD of the media firm since January 1, 2010.

Zee Entertainment’s (Zee’s) Managing Director and Chief Executive Officer Punit Goenka has been reappointed to the position, effective January 1 next year, the broadcaster said on Tuesday, as lenders prepare to sell their pledged shares.

In a statement to the stock exchanges, Zee said that an in principle approval for Goenka’s reappointment for a period of five years was finalised by its board of directors in a meeting. Shareholder approval, it said, would be subsequently sought.

Goenka, who is the elder son of Essel group promoter and Zee chairman Subhash Chandra, has been MD of the media firm since January 1, 2010.

He was appointed CEO in July 2008 after then CEO Pradeep Guha stepped down. The top-level rejig at that time was viewed as Chandra's attempt to put succession planning in place at Zee, which is the flagship firm of the Essel Group.

While Zee is among the leading broadcasters in India, the others being Star, Sony and Viacom18, the firm in the last one year has faced intense scrutiny amid concerns over mounting debt.

Almost 96 per cent of the promoter stake of 22.37 per cent in Zee is pledged to lenders. Of this, 10.71 per cent is pledged to VTB Capital, the investment arm of Russian financial services major VTB Group.

Last month, VTB Capital said it had received lender protection rights in Essel Media Ventures, a promoter group entity, whose shares were pledged to it against loans taken by the latter. Essel Media holds 10.71 per cent in Zee.

The announcement by VTB Capital had paved the way for a likely sale of its pledged shares in Zee, though Goenka insisted in a subsequent concall with analysts that his firm was in "active dialogue" with the former. VTB has since appointed investment bankers for the sale process, including JPMorgan and Citigroup.

VTB’s action, media industry sources said, had emboldened other lenders of Zee to sell their pledged shares, who've begun the process by transferring their shares to an escrow account.

Business Standard

What's the RCEP and what does India's exit mean for the trade deal?

India pulled out of the deal saying it wanted to protect service workers and farmers.

Business Standard : When it comes to sweeping global free-trade agreements, President Donald Trump isn’t the only party-pooper. Two years after Trump withdrew the U.S. from a 12-nation deal known as the TPP, Prime Minister Narendra Modi has pulled India out of a 16-nation grouping led by China known as the RCEP. In both cases, protectionism played a part; in both cases, the show goes on.

1. What is the RCEP?

What began in 2012 as a routine harmonizing of agreements between members of the Association of Southeast Asian Nations, or Asean, turned into a deal creating potentially the world’s biggest free trade bloc. The Regional Comprehensive Economic Partnership, to give its full name, is aimed at strengthening trading ties among China and others with Asean members. Broadly speaking, it would lower tariffs and other barriers to the trade of goods among the 16 countries that were in, or had existing trade deals with, Asean.

2. But that’s now down to 15 nations?

Correct. India pulled out in November saying it wanted to protect service workers and farmers. There were also worries the country would be flooded by cheap goods from China. Modi had pushed the other nations to address concerns over deficits and to open their markets to Indian services and investments.

3. Is India’s loss a big deal?

It would have been the third-biggest economy in the RCEP, so yes. On the other hand, China has been seeking to tie up the deal expeditiously as the country faces slowing growth from a trade war with the U.S. It is also looking to further integrate with regional economies just as the Trump administration urges Asian nations to shun Chinese infrastructure loans and 5G technology. China says India is welcome to come back aboard whenever it’s ready.

4. What’s different about the RCEP?

Unlike the TPP and other U.S.-led trade deals, the RCEP wouldn’t require its members to take steps to liberalize their economies, protect labor rights and environmental standards and protect intellectual property. According to U.S. Commerce Secretary Wilbur Ross, it’s a “very low-grade treaty” that lacks the scope of the Trans-Pacific Partnership, or TPP.

Uber's revenue improves but user growth, food delivery orders disappoints

San Francisco-based Uber is seeking to assure investors it can evolve from a ride-hailing service to a global all-in-one transportation platform.

Uber Technologies Inc. disappointed investors with quarterly results showing lackluster gains in bookings and monthly active users, two of the metrics most closely watched by Wall Street.

The ride-hailing company beat estimates for quarterly revenue and loss, improved its annual loss forecast and pledged to turn a profit by 2021. Those weren’t enough to lift the stock, though. Shares were down about 5 per cent in extended trading after the results.

The San Francisco-based company is seeking to assure investors it can evolve from a ride-hailing service to a global all-in-one transportation platform. There could be more pressure on Uber shares Wednesday, when a stock lockup for a large swath of shareholders expires. An additional 1.5 billion shares could be eligible to trade according to Renaissance Capital, nearly doubling the total number outstanding. Of venture-backed companies, only Alibaba Group Holding Ltd. had a larger lockup of 1.6 billion shares.

While Uber’s overall results were good, uncertainty about the possibility of new shares flooding the market cast a shadow that may have depressed share price, said Ali Mogharabi, an analyst at Morningstar.

“It may be people getting out now, thinking that after Wednesday it’ll drop,” he said.

On a conference call with reporters following the report, Uber executives said the company would spend less aggressively and turn an adjusted profit in 2021. “We will be driving discipline across the company and only doing investments that we can afford,” said Chief Executive Officer Dara Khosrowshahi.

The forecast echoed a commitment from Uber’s smaller rival, Lyft Inc., which said it would be profitable by the fourth quarter of 2021, a year earlier than previously expected. Lyft, which focuses exclusively on transportation, blew past analysts’ third-quarter estimates when it reported results last week.

Business Standard

India opts out of RCEP: Axe on Chinese imports, trade deal with US likely

The latest twist in India's policy on foreign trade may, however, benefit the US.

Further curbs on Chinese imports and a trade deal with the United States may follow India's move to pull out of the Regional Comprehensive Economic Partnership (RCEP).

China figured prominently in New Delhi's move on Monday to pull out of the pact after 7 years of back and forth negotiations. India said on Monday that a lack of assurance on safeguards to protect the domestic industry from dumping by China and no credible promise by Beijing to allow market access to Indian goods were reasons it was quitting the pact.

As a result, the government will double down on its efforts to curb imports from China, which were more than $70 billion in 2018-19, senior officials in the know said. "Presence of significant amounts of major non-tariff barriers that are publicly known and China's unwillingness to remove them were major hindrances towards a treaty," a trade expert said.

India had also feared that rules of origin would continue to be flouted by Chinese producers, who ship high-value goods such as mobile phones and electronics through Vietnam and other Asean nations, to dodge relatively higher tariffs.

Possible US deal

The latest twist in India's policy on foreign trade may, however, benefit the US. "US President Donald Trump has over the past two years continued to put pressure on India for a broad based free-trade agreement (FTA) talks. These may start sooner rather than in the distant future," a senior trade expert said.

Case in point: During Prime Minister Narendra Modi's last visit to the US, Trump had promised a trade deal with India “very soon”, and a larger deal down the line. This was followed up by Commerce and Industry Minister Piyush Goyal last month batting for 'closer trade engagement' with the US. "India and the US have resolved most of their broad trade differences and the countries must look at a much larger deal like a bilateral agreement," Goyal had said in no uncertain terms.

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