Unlock 2.0 opens a small window; PM to address the nation at 4 pm today

The Centre on Monday issued guidelines for “unlock 2.0”, but the rapid increase in Covid-19 cases in several parts of the country meant it stopped short of reopening schools, colleges, and coaching institutions.
International air travel and metro rail services will also continue to remain shut at least till July 31, and large congregations stay banned. Tamil Nadu and Maharashtra decided to extend the lockdown in several parts of the states until July 31.

“Unlock 2.0” will come into force on Wednesday, July 1. Prime Minister Narendra Modi is slated to address the nation at 4pm on Tuesday.
The fresh guidelines, issued by Union Home Secretary Ajay Bhalla, stated domestic flights and train services, already allowed, would be further expanded in a calibrated manner.
Under the fresh guidelines, night curfew has been relaxed. Night curfew will now be from 10 pm to 5 am, instead of 9 pm to 5 am. Shops have been allowed to have, space permitting, more than five people at a time.
“Unlock 1” guidelines, issued on May 30, had ordered reopening religious places, malls, hotels, and restaurants from June 8. It had also stated the decision on reopening schools and other educational institutions would be taken in July after feedback from parents and other stakeholders.
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However, the Centre has decided against reopening schools, colleges, and coaching institutions until July 31. In an exception, training institutes run by the Centre and state governments will reopen on July 15.
Cinema halls, gymnasiums, swimming pools, entertainment parks, theatres, assembly halls, and similar places will continue to remain shut.
Social, political, cultural, religious, and other large congregations will also remain prohibited.
As for containment zones, only essential activities will be allowed at least until July 31. The guidelines stated that states and Union Territories can prohibit certain activities outside containment zones based on their assessment. However, state
governments cannot ban inter-state and intra-state movements of people and goods.
The fresh guidelines said the dates for resuming the remaining prohibited activities would be decided later.
In Maharashtra, the Uddhav Thackeray-led government on Monday announced the ongoing lockdown in the state would be extended till July 31. In view of the increasing cases, the government said restrictions on non-essential activities and movement of people would be re-imposed in Covid-19 hotspots.
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“Concerned District Collectors and Commissioners of the Municipal Corporations in the state may enforce certain measures and necessary restrictions in specified local areas on the permitted non-essential activities and movement of persons to control the pandemic,” the state government said. It said unrestricted movement would be allowed for attending offices and in emergencies.
Essential shops remaining open, e-commerce activities for essential and non-essential items, operational industrial units, and home delivery of food will be allowed.

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In Tamil Nadu, Chennai, Madurai, and surrounding areas will continue to be under intense lockdown till July 5 and the current relaxations and curbs will be in force till July 31 for the rest of Tamil Nadu, the government said.
“Total lockdown will continue in Chennai, Madurai and surrounding areas till July 5. From July 6 to July 31, Chennai will revert to pre June 19 relaxed lockdown. From July 6, Madurai will revert to pre June 24 relaxed lockdown,” said the state government in its order.
After announcing relaxation as part of Unlock 1 across the state from June 1, the Tamil Nadu government had re-imposed intense lockdown in Chennai, Chengelpet, Tiruvallur, and Kancheepuram.
Assam has also announced “total lockdown” in Guwahati from Monday for the next two weeks after an increase in Covid-19 patients.
Punjab has continues to have a partial lockdown over weekends.

Plan for Unlock 2.0, PM Modi tells CMs on the second day of interaction

Warning that as monsoon approaches, managing the Covid-19 pandemic could become harder, Prime Minister Narendra Modi on Wednesday said businesses and offices must prepare for the second phase of the lifting of restrictions and adhere scrupulously to social distancing to control the spread of the contagion.
He said India’s health capacities had been augmented but needed to be strengthened further to defeat the infection.
On the second day of the interaction with chief ministers (CMs) of Bihar, Andhra Pradesh, Haryana, Jammu & Kashmir, Telangana, Odisha, Maharashtra, Tamil Nadu, Delhi, Gujarat, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Karnataka, Modi said when the health crisis first hit India, the country was short of almost all equipment needed to fight the infection. Since then, the manufacture of personal protective equipment (PPE) and ventilators had been ramped up.
“Just three months back, there was shortage of PPE gear and diagnostic kits across the world. In India, too, we had limited stock because we were completely dependent on imports. But today, more than 10 million PPE kits and an equal number of N95 masks have reached the states,” he said. He said health facilities will continue to be scaled up.
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“More and more people are recovering from Covid. There is no need to panic. We should encourage the Covid warriors and continue our fight against the deadly affliction,” Modi said, adding it was necessary to provide emotional support to those who were undergoing treatment, over and above overhauling the physical health infrastructure. The PM opened the meeting with a reference to the stand-off on the border with China and observed a two-minute silence in memory of the slain soldiers.

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He said the timely tracing, treatment, and reporting had helped contain the spread of the virus, adding the recovery rate was on a steady rise. He said India had reported one of the highest recovery rates in the world.
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The number of patients who have recovered was more than the number of active cases in the country, he added. This was achieved because “discipline shown by the people during lockdown had helped control the exponential growth of the virus”.


“States where more people have downloaded the Aarogya Setu app have shown positive results. We must ensure more people install this app and update it from time to time,” Modi said.
He also said helplines should be helpful, not helpless, in order to guide patients via telemedicine.
Some CMs thrashed out their issues with the PM. West Bengal’s Mamata Banerjee was conspicuous by her absence. She had not been invited to speak and had instead sent state Chief Secretary Rajiva Sinha to speak on her behalf.

Important to be even more vigilant now, says PM Modi in 'Mann Ki Baat'

On a day when India registered its highest single-day spike of 8,380 coronavirus cases, Prime Minister Narendra Modi cautioned people of the country to remain even more vigilant now as major chunk of the economy has opened up. Coronavirus is very much there and we cannot be complacent, he said.
Addressing the nation in the 65th edition of his radio show "Mann ki Baat" on Sunday, the prime minister said that "India's fight against Covid-19 is people-driven and country's 'seva shakti' is visible in this battle".
ALSO READ: Coronavirus LIVE: Highest single-day spike of 8,380 Covid-19 cases in India
However, he clearly stated that it would be a long battle against the pandemic. "Road ahead is a long one. We are fighting a pandemic about which little was previously known," he said.

"There is no class of people who did not suffer due to this outbreak, but poor, labourers hit hardest," Modi said.
Everyone is working to help them, he said, and highlighted the railways' exercise to transport huge numbers of migrant workers to their home.
The prime minister also asked people to be "extra careful" and stick to precautions like maintaining social distance and wearing masks as the economy gradually opens up.
He noted that a big part of economy has reopened, with railway and air traffic being resumed partially and set to be scaled up in the coming says. "You need to be extra careful now," he said.
Modi noted how India has fared much better than many parts of the world in fighting the pandemic and also lauded innovative spirit and the sense of service shown by people in different parts of the country.
He also assured farmers, saying that help will be extended to all those affected by locust attack.
On the destruction caused by Cyclone Amphan, he said, "India stands with Odisha and West Bengal, people of these states have shown remarkable courage."
On Saturday, the Union Ministry of Home Affairs (MHA) issued new guidelines for phased re-opening of "all activities outside containment zones for the next one month beginning June 1".
PM Modi in a letter addressed to Indian citizens on Saturday has expressed “firm belief” that the country will set an “example in economic revival” for the world.
"Given the way India has surprised the world with its unity and resolve in the fight against coronavirus, there is a firm belief that we will also set an example in economic revival," he wrote.
In the letter, which marks the completion of one year of the current tenure of his government, the prime minister said sections of the population, including workers and artisans, have “undergone tremendous suffering” because of the spread of coronavirus.

In the 64th episode of 'Mann Ki Baat', the Prime Minister had focused on the situation prevailing in the country due to Covid-19 and urged people to help the poor, migrants and needy during the lockdown.
He had said that India's fight against coronavirus is "people-driven" and is being fought by the masses and the administration together.
The Prime Minister had on March 24 announced a 21-day nationwide lockdown as a precautionary measure to contain the spread of COVID-19. The lockdown was later extended, in phases, till May 31.
According to the Union Ministry of Health and Family Welfare, India witnessed the highest ever spike of 7,964 coronavirus positive cases on Saturday, taking the total count in the country to 1,73,763.
With as many as 265 deaths reported in the last 24 hours, the death toll due to the virus now stands at 4,971. Out of the total number of coronavirus cases, 86,422 are active cases and 82,370 have been cured/discharged/migrated.

Modi's 9-min blackout call: Power sector on alert to ensure grid stability

Ending many hours of suspense, Prime Minister Narendra Modi addressed the nation through a video message at 9 am on Friday, urging the public to switch off the lights for 9 minutes at 9 pm on April 5 and light candles instead. If not candles, torches and mobile flashlights too can be used across balconies and gates to show solidarity in the fight against coronavirus.
Ever since the announcement Thursday evening about the PM’s video message, speculation has been building up on whether he was going to talk about lifting the lockdown in phases or extending it.
He did neither.
The PM said people should tell each other that even though they were at home, they were not alone. “This country’s 1.3 billion people are together during this lockdown period. We have to dispel the darkness spread by coronavirus and give hope to the poor who are the most impacted by lockdown,” he said. This is his second attempt at solidarity, after the call for Janata Curfew on March 22.
While the PM’s appeal may have dashed many hopes, it sent the power ministry into a huddle as this could lead to a significant drop in electricity demand. However, the power ministry said the event would not impact the national power grid much and that planning would be done in advance. “Power Minister R K Singh has discussed the issue with Power Grid Corporation of India (PGCIL) and the grid operator Power System Operator Corporation (POSOCO) in today’s meeting. They are up to the task and are confident of managing the grid stability for the event,” said a ministry spokesperson. Another official pointed out the extent of fluctuation expected would be minimal. “But we have asked all state and regional load dispatch centres to be prepared.”
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The mass switch-off event comes at a time when the country has witnessed an unprecedented fall in power demand over the past two weeks of lockdown. Following the announcement of a 21-day lockdown due to the corona pandemic, power demand has fallen by close to 30 per cent during March.
The lockdown is till April 14. Anticipating drastic fall in demand and generation capacity shut, power sector stakeholders have been on contingency mode for the past fortnight. This includes power generators (gencos), suppliers and grid operators. However, for the lights-off event on Sunday, POSOCO will manage the stability of the power grid.
Senior executives said POSOCO had informed its regional and state load dispatch centres to be ready for any drastic fall in the electricity load and sudden spurt in a matter of minutes on Sunday.
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The load dispatch centres, across five locations, monitor, schedule and forecast supply of power in their respective regions. Officials said out of the current peak demand of around 120-125 GW, household lighting load was close to 12-15 GW. Any fluctuation would be in the same range (12-15GW), which is 10 per cent of the current peak load.
Some states have also started preparing for the Sunday lights-off event. Uttar Pradesh has asked all generating stations to be ready to generate power. It has also asked all the hydro units to reduce their generation based on requirement. Instruction has also gone out that load shedding (power cut) should be strictly done between 8 and 9 pm on Sunday to prevent failure of power supply system in the state.
Though there was panic in social media with some anticipating grid disturbance due to this mass switch-off event, senior executives at POSOCO and Power Grid Corporation, which is the national power transmission company, said the event would have no bearing on the grid.
“The grid is built to handle disruptions on a daily basis. The good thing is power demand is low these days, so it’s easier to manage. However, we are on alert at all our sites,” said a senior executive.
POSOCO has a contingency plan in place in the wake of Corona pandemic and demand fall. It listed out a 15-point agenda for “ensuring power supply and grid security in the wake of COVID-19 pandemic outbreak”. This included having reserve manpower in case of any emergency and setting up temporary control rooms in the regional centres.
To ensure steady availability of power, hydro and gas run power stations have been asked to be readily available. Unlike coal, solar and wind stations, hydro and gas can be switched off and on instantly.
All transmission line licences including Power Grid and private players such as Sterlite Grid, Adani Transmission etc have been advised to avoid planned shutdown and execute any instruction from the POSOCO promptly.
Power Grid, which owns 95 per cent of the country’s transmission network, has shifted to remote monitoring after the nationwide lockdown.

PM Modi calls for staggered lifting of lockdown as cases top 2,000

With the country witnessing a spike in coronavirus infections and deaths in the past few days, Prime Minister Narendra Modi has suggested states to lift the ongoing lockdown in a staggered manner when it ends on April 15. He has also indicated a shift from the Centre’s current policy of limited testing for Covid-19, which has killed about 50,000 people around the world.
Interacting with chief ministers via videoconferencing on Thursday, the PM told them that “testing, tracing, isolation, and quarantine” should remain the area of focus in the next few weeks to contain coronavirus.

Modi said the Centre and states needed to formulate a common “staggered” exit strategy from the lockdown. He sought suggestions from states on ensuring “staggered re-emergence of the population” after the end of the 21-day nationwide lockdown. He said Covid-19 had attacked “our faith and belief and is threatening our way of life”.
Maharashtra Chief Minister Uddhav Thackeray tweeted, “The PM said the state government should not lift the lockdown immediately from April 15, but it should happen in phases. Precautions should be taken that there is no crowding.”
ALSO READ: Coronavirus LIVE: Global cases near 1 million, Modi to give video message
“The completion of lockdown will end on April 15. But it doesn’t mean free will to move out on the streets. We all must be responsible in slowing down. Lockdown and social distancing are the only way to fight Covid-19,” Arunachal Pradesh CM Pema Khandu tweeted, but deleted it minutes later. He said the tweet was uploaded by an officer whose comprehension of Hindi was limited.
Several chief ministers sought not only more funds from the Centre to help them combat Covid-19, but also more testing kits, ventilators, and other medical supplies.
Tamil Nadu CM K Palaniswami and Bihar CM Nitish Kumar appealed for relaxing Fiscal Responsibility and Budget Management (FRBM) norms by increasing the fiscal deficit limit of gross state domestic product (GSDP). Kumar said it should be increased from 3 to 4 per cent, and pointed that it was increased to 4 per cent in 2009-10 during the global financial crisis, and in 2010-11, from 3.38 per cent to 3.5 per cent. Palaniswami said this relaxation should be applicable for 2019-20 and 2020-21.
Rajasthan’s Ashok Gehlot demanded the Centre release Rs 1 trillion to all the states to tackle the epidemic and help states cope with financial constraints of the lockdown.
Congress CMs suggested the borrowing limit of states be increased by 2 per cent, and a moratorium on the payment of dues to financial institutions under the Reserve Bank of India.
Punjab’s Amarinder Singh demanded the release of his state’s goods and services tax (GST) share of Rs 5,000 crore; Chhattisgarh’s Bhupesh Baghel requested the Centre to release his state’s share of Rs 2,000 crore; and Palaniswami asked for Rs 9,000 crore. West Bengal CM Mamata Banerjee did not attend the meeting.
At the meeting, the PM asked the states to identify hotspots of the virus, encircle them, and ensure that coronavirus did not spread out.
According to a government press release, the PM forewarned about speculation of a "possible second wave" of spread of the virus in some countries.
Modi asked states to maintain the supply of essential medical products, and availability of raw materials for manufacture of medicines and medical equipment. He said it was necessary to ensure availability of separate, dedicated hospital facilities for Covid-19 patients.
To increase the availability of doctors, he asked states to tap into the resource pool of AYUSH doctors, organise online training, and utilise paramedical staff, National Cadet Corps, and National Social Service volunteers.
The PM asked states to set up crisis management groups at the district level and appoint district surveillance officers. He said data must be taken from accredited labs for testing -- "this will ensure congruence in data of district, state and centre," the statement said.
He said it was necessary to ensure staggered release of funds to the beneficiaries under the PM Garib Kalyan Yojana to avoid crowding at banks.
Modi said while the government had given some relaxation from the lockdown to farmers since it was harvest season, it was necessary to continuously monitor and maintain social distancing as much as possible.
He asked states to think of other platforms for procuring grains apart from Agricultural Produce Market Committees (APMCs), and explore the possibility of creating pooling platforms for rural areas. He gave the example of ride-sharing apps, which he said could be used for this purpose.
Union Health Secretary Preeti Sudan spoke about the rise in number of cases in India, particularly the spread of cases from the Nizamuddin headquarters of Tablighi Jamaat. Some of the CMs spoke of how their administrations were trying to trace and isolate the participants from their state in the event.
He appealed to the leaders to reach out to community leaders and social welfare organisations at state, district, town, and block levels to build up a united front based on community-approach in the battle against the pandemic.
Defence Minister Rajnath Singh and Home Minister Amit Shah were also present at the interaction. Shah talked about the need to implement lockdown more strictly in some states.
In a letter to all chief secretaries, Union Home Secretary Ajay Bhalla asked states and UTs to ensure smooth disbursement of Rs 27,500 crore to beneficiaries of the PM Garib Kalyan Yojana through banks from Friday.
The government also launched a mobile app, ‘Aarogya Setu’, to help people assess themselves the risk of catching coronavirus.

Maintain production line of essential commodities, PM Modi tells India Inc

Top India Inc representatives, in an unusual video-conference meeting with Prime Minister Narendra Modi on Monday, sought a fiscal stimulus for industry to battle the coronavirus crisis that has forced factories and offices to shut down indefinitely.
The business leaders, including Hindustan Unilever Chairman and Managing Director Sanjeev Mehta, TVS Chairman Venu Srinivasan, and Piramal group Chairman Ajay Piramal, also told the PM that monetary incentives must be given to the vulnerable sections.

Modi had called the virtual meeting to discuss possible solutions to the rapidly declining industrial production after the government decided to shut down around 80 coronavirus-hit districts, with further plans to introduce similar steps for other major urban centres.
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Federation of Indian Chambers of Commerce & Industry (Ficci) President Sangita Reddy, as well as her counterpart in the Confederation of Indian Industry (CII) Vikram Kirloskar, attended the meeting, along with other members. They were united in the idea of direct cash benefit transfers to the economically vulnerable population.
Both industry bodies have called for cash transfers of Rs 5,000 each to workers and those earning below Rs 5 lakh as well as a one-time payment of Rs 10,000 for senior citizens. The PM was keen on knowing the details of the proposed cash transfer which may boost the stagnating consumer demand, multiple people present in the meeting said.
coronavirusPassengers wait for a DTC bus outside Sarai Kale Khan Bus stand after lockdown in the wake of coronavirus pandemic in New Delhi. Photo: PTI
Overall, industry has sought relaxed loan provisions and measures to boost liquidity. “All borrowers should be given a three-month moratorium on all loans and all repayment obligations should be suspended for this period. The CII also emphasised that there is an immediate need to facilitate and enable advances for ways and means for industry across sectors and the government could perhaps explore options of a moratorium on interest and principal for the next three months,” Kirloskar said. He added the government’s priority should be on 'flattening the curve’ or reducing the number of new infections as soon as possible. The CII has also called for dollar-liquidity swap as India is in a comfortable position as far as its dollar reserves are concerned.
Similarly, Ficci has suggested that the government must take a 200-basis point hit to the fiscal deficit target, which can bring about Rs 4 trillion worth of liquidity in the system. “No further accounts should be considered as non-performing assets from March 16 onwards, while the payment of standard loans should be deferred by two quarters. Aside from bank loans, liquidity should also be maintained for commercial papers and corporate bonds,” Reddy said. Ficci has also argued that no new cases should be opened under the Insolvency and Bankruptcy Code at the National Company Law Tribunal for companies affected by coronavirus.
The chambers reiterated that none of the moves being sought by them would have any major negative financial implication for the government.
At the meeting, Modi stressed that supply of essential items should not be impacted, while black marketing and hoarding must be prevented. However, TVS Group's Venu Srinivasan pointed out that clarifying what constitutes an essential item remains a problem. "Now, a lot of stocks are trading at less than 50 per cent of two years ago. When the bulls come back, it will be a 'V' shaped recovery," he added.
Heeding the government's call to burden more responsibility, business leaders have also assured the PM that workers will not be laid off casually and firms would try to guarantee the financial safety of the most vulnerable. For instance, CII members will dedicate their plant facilities to help scale up manufacturing and availability of essential equipment needed to deal with the medical emergency linked to ventilators, sanitisers, essential drugs, medical services, on a no-profit basis.
Ficci members plan to support up to 5,000 new medical beds by converting hotel rooms into medical facilities. The industry body is working with Niti Aayog to produce beds and ventilators for isolation and quarantine, and is sharing data for virus testing practices. Besides Mehta, Srinivasan and Piramal, other business leaders to log into the meeting included Rajan Bharti Mittal, Uday Kotak, Pankaj Patel and Harsh Pati Singhania.
Biz wish list
*Rate cut of 50 to 100 basis points to boost lending and liquidity
*Dollar-liquidity swap since dollar reserves remain comfortable
*A moratorium on interest and principal for the next three months
*Deferment of payment of standard loans and interests by 2 quarters.
*All EMIs should be back-ended and deferred

Allow employees to work from home, don't cut jobs: PM tells India Inc

Prime Minister Narendra Modi on Monday asked Indian companies to maintain production lines of essential commodities and ensure there is no hoarding as well as black marketing in the wake of the country fighting the coronavirus outbreak.
Interacting with industry representatives via video-conferencing, Modi said the impact of the pandemic on the economy will be felt for some time to come with several sectors such as tourism, construction and hospitality being hit.

He asked India Inc to allow employees to work from home and not to cut down on workforce in spite of the pandemic's negative impact on their businesses.
"He said it is imperative that production of essential items should not be impacted at this time, and black marketing and hoarding be prevented," an official statement quoted him as saying.

Critics of $5-trillion economy are 'professional pessimists', says PM Modi

Prime Minister Narendra Modi on Saturday said reducing India’s oil import bill would help strengthen the economy and described the critics of his government’s target of making India a $5-trillion economy in the next five years as “professional pessimists”.
Modi, who was in his Lok Sabha constituency, Varanasi, to launch his party’s membership drive on the occasion of the 118th birth anniversary of party ideologue Syama Prasad Mookerjee, explained to Bharatiya Janata Party (BJP) workers the rationale behind the $5-trillion economy objective and asked them to disseminate the message among people.
“The size of the cake matters. The bigger the cake, the bigger the share of everybody in it," he said, a day after the tabling of the first Budget of his government’s second term in Parliament. “This is the reason for our objective of making India a $5-trillion economy, which would increase the per capita income of people, which in turn would increase their purchasing power, demand and production, and trigger job growth."
The PM said India should use its demographic dividend to join the league of developed countries and shed the vicious cycle of low income and limited expenses. He bemoaned that poverty had become a virtue “in our hearts and minds”.
ALSO READ: A path to $5-trillion economy
He explained at length the commitments made in the Budget, including efforts to make India a hub of manufacturing of solar panels, photo-voltaic cells, and e-vehicles. He said a wider use of e-vehicles and solar panels made in India would reduce India’s oil bill. “We spend Rs 5-6 trillion to import petrol and diesel every year. It will strengthen India’s economy if this expenditure comes down with the use of solar power, wind power,” the PM said.
Modi said the Budget speech consciously did not have data on budgetary allocations. “The details were there in the budgetary documents, but the speech was to tell India the road map to achieve the $5-trillion economy objective," he said.
On some people questioning the need for becoming a $5-trillion economy, Modi said, "They are what I call professional pessimists. They are detached from the common man and if you go to them for a solution, they will put you in crisis. The country needs to be wary of these pessimists."
Referring to the budgetary provisions, Modi said a "new India" was on the threshold of sprinting forward and recited a few couplets in Hindi, which means the challenges before one also offer immense opportunities to surmount them and everyone's contribution in the development of the country will be a true gift for Mother India.

ALSO READ: India needs structural reforms to get $5 trn economy: FM in Budget 2019
The Budget, he said, provided for boosting farm and fisheries exports, making Rs 100 trillion investment in infrastructure such as roads and ports in the next five years, constructing houses for all, promoting domestic manufacturing, and cutting imports.
While the country is self-sufficient in food grain production, the Budget emphasises on turning farmers into exporters of farm produce and value-added products. The government's effort on cleanliness will boost tourism, which is the cheapest form of creating employment, Modi said.
"The economy will not pick up pace unless infrastructure is good. We are building infrastructure from crop storages in villages to modern facilities in cities. Highways, railways, airways, waterways, i-ways, digital infrastructure, broadband in villages... Rs 100 trillion will be invested in five years,” the prime minister said.
To boost housing, the Budget has given an additional Rs 1.5 lakh income tax exemption on the purchase of affordable houses. Also, the government will build 20 million houses to meet the target of housing for all by 2022, he said.
The Centre will draft a model tenancy law and send it to state governments to boost rental housing, Modi said, adding all these will boost employment, create demand for steel, cement and other goods. Earlier, soon after his arrival at Varanasi on a day-long visit, Modi unveiled a statue of former prime minister Lal Bahadur Shastri at the airport.

Modi's rule so far: India hoped for a Shinzo Abe. It got a lost decade

Five years ago, I wrote that Narendra Modi could be India’s Shinzo Abe. I couldn’t have been more wrong.
The chief minister of Gujarat state had just been chosen by his party to become the next prime minister if it won the popular vote. Writing for Reuters then, I predicted he could lift the country’s drooping economy, just as Abe had been attempting to do in Japan.
To get an idea of how badly Modi has undershot expectations, look at India’s largest maker of consumer staples. Hindustan Unilever Ltd. recently reported March quarter revenue growth of 7%, the weakest in 18 months. But it was what CEO Sanjiv Mehta said that unnerved investors. Consumer essentials are “recession-resistant but not recession-proof,” Mehta said. “At the end of the day, it depends on money in the hands of consumers.”

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Recession? In what Team Modi professes to be the world’s fastest-growing major economy?
From carmakers to toothpaste sellers, Indian firms have had a lousy start to 2019. It’s a performance that belies the economy’s official GDP growth rate of 7%, not to mention its advance to 77th place in the World Bank’s ease of doing business ranking, from an abysmal 142nd four years ago.
In Japan, Abe has presided over what’s possibly the longest economic expansion in its post-World War II history despite the burden of an aging population. The signature piece of his reforms has been unprecedented monetary stimulus to end the country’s deflationary mindset.
For a long time it looked like Modi would catch up with his counterpart, who had a head start of about 18 months after taking office in December 2012. India’s leader certainly had successes. They included a $48 billion reduction in the crippling debt of power distribution companies (so they could be healthy again and pay producers on time). In May 2016, Modi’s government gave India its first modern bankruptcy law, and in August that year, parliament voted in favor of a national sales tax, promising freedom from a bewildering array of state levies.
As late as October 2016 there was nothing to distinguish between the 30% gains (in U.S. dollar terms) delivered by benchmark stock indexes in Japan and India since Abe took office.
But the following month, Modi did something bizarre. He made 86% of the country’s cash illegal. Abe never got around to dropping cash from helicopters to get citizens to spend. Modi succeeded in doing the exact opposite: He froze the purchasing power of an unsuspecting population for several months.
Most people fail to realize that the loss of output India suffered in that two-and-a-half-year-old episode wasn’t temporary. The shadow is visible in Hindustan Unilever’s latest results.
Demonetization forced Indians to pull cash from informal business financing and real-estate speculation and, along with what they had in hand, put it in bank accounts or mutual funds. Property transactions, typically greased by cash that’s not declared to tax authorities, stalled. Even when the supply of new currency became normal, demand didn’t revive. More people chose to spend on consumer goods (like a new motorcycle) instead, as Kotak Securities Ltd. notes, encouraged by nonbank lenders that had no difficulty raising debt from cash-stuffed mutual funds.
This consumption edifice is now crumbling. For one thing, the financing that supported it has keeled over. For another, the spending was erected on incomes that weren’t growing as fast as reflected in dubious GDP data. Rural demand has been hurt by slumping prices of agricultural commodities.
Families cutting back on biscuits and toothpaste?
This isn’t how Modi’s five years were supposed to end. In terms of stock-market returns, he’s still leading Abe. That may be because investors are underestimating the consumption slowdown and the dislocation in finance, which I termed India’s mini-Lehman moment last September. Hindustan Unilever may not mean “recession” in the formal sense of two quarters of economic contraction, but its top executives are unlikely to be using the word carelessly.
Modi inherited an economy that had been mismanaged for five years and proceeded to repair it, only to throw it into chaos in the second half of his term. A poorly designed national sales tax has hurt government revenue; crony capitalists have made a mockery of the new bankruptcy law; and the debt overhang for power-distribution companies has become just as grim as before.
Modi didn’t become India’s Abe, but he did preside over half a Japanese-style lost decade.

India's power goals slip out of reach as losses rise to Rs 24,000 crore

Losses by India’s power retailers are set to rise, reversing two years of declines they enjoyed since Prime Minister Narendra Modi’s government unveiled a plan to make the ailing utilities profitable.
Combined losses by state distributors that signed up for the federal government’s reform plan in the first nine months of the fiscal year rose to about Rs 24,000 crore ($3.4 billion), a 62 per cent jump from a year earlier, amid an increase in coal and power costs, according to Ajay Kumar Bhalla, India’s power secretary.

“We may not have achieved targets, but we feel we have done well,” Bhalla said, pointing to success installing new meters and improving billing and payment collections. “Structural issues have been addressed, and we expect them to yield positive results.”
Full-year earnings by the companies, known as discoms, could improve as most states are scheduled to make subsidy payments during the last quarter of the fiscal year, which ended in March, he said.
As part of Modi’s power industry revival plan, called UDAY, states took over 75 percent of the debt of their distribution utilities to help ease their debt burdens. The discoms were then given operational targets to reduce losses, while the federal government contributed with energy efficiency schemes, such as expanding the use of energy-saving of LED lights and deploying solar irrigation pumps. All but two of India’s 29 states have signed up.
The stalled recovery will sustain discoms as the weakest link in India’s electricity supply chain.
Many are saddled with large debts from selling power below cost or from poor billing and collections. The financial mess impedes their efforts to serve low-paying consumers, such as rural homes and farmers, while also stifling their power purchases and ability to make timely payments to electricity generators.
Coal Costs
State-run Coal India Ltd., the country’s biggest supplier of the fuel used for power generation, said average coal prices during the nine month period rose 11.6 per cent. Power costs also increased as some generators had to import coal to bridge a domestic supply shortfall. Average spot electricity prices rose 28 percent from a year earlier to Rs 4.08 per kilowatt hour during the nine-month period, data from Indian Energy Exchange show.
The discoms’ inability to pass on such cost increases remains a key hurdle for revival of the electricity distribution sector, according to Debasish Mishra, a partner at Deloitte Touche Tohmatsu in Mumbai.
Distributors also continue to lose money on every unit of electricity sales. The UDAY reform plan aimed to eliminate these losses by closing the gap between the cost of power supplied and realized revenues. In the first nine months of the last fiscal year, the difference was Rs 0.34 per kilowatt hour, according to Bhalla. That’s a 21 per cent rebound from the same period a year ago.
Power Losses
The industry has shown some improvement on the amount of power that’s lost through theft or poor metering. That share, known officially as aggregate technical and commercial losses, has narrowed to 19.7 per cent, Bhalla said. That’s down from 21.4 per cent in the same period last year. However, that’s still above the 15 percent target set under the UDAY plan.
The power losses in large electricity consuming states -- including Uttar Pradesh, Maharashtra and Madhya Pradesh -- have increased from levels seen five years ago, according to data from the ministry’s website tracking the progress of the plan. Some states have shown improvement, such as Rajasthan, Haryana and Bihar, but are still lagging targets. On an average, distributors continue to lose revenues on about a fifth of the electricity they provide.
“The plan was a well-designed carrot so many discoms bought into it, but there was no stick,” said Vinayak Chatterjee, chairman of infrastructure services firm Feedback Infrastructure Service. States fell behind in enforcing measures to check thefts, improve billing and collections and root out systemic corruption, he said.

Movie on Modi gives him cult status, will tilt electoral balance: EC to SC

The biopic on Prime Minister Narendra Modi is a "hagiography", which treats the subject with undue reverence, and its public screening during poll campaign will "tilt the electoral balance", the Election Commission (EC) has told the Supreme Court while opposing the release of the movie starring Vivek Oberoi before the polls end on May 19.
In its 20-page report submitted to the apex court bench headed by Chief Justice Ranjan Gogoi on the film titled 'PM Narendra Modi', the poll panel said that the biopic "produces a political environment where an individual acquired cult status" and its public screening during the period when model code of conduct is in operation would favour a particular political party.

The EC said "there are several scenes depicting a major opposition party as corrupt and showing them in poor light. Their leaders have been depicted in such a manner that their identification is clear and obvious to the viewers." It said that the biopic was more than a biography and was a "hagiography" (which treats the subject as saints and gives undue reverence) and the construct of the movie was "unabashedly uni-dimensional", which puts an individual on a higher pedestal through use of specific symbols, slogans and scenes.
The report was submitted after the apex court had on April 15 directed the EC to re-examine its earlier order and take an informed decision on banning pan-India the release of the biopic after watching the full movie.
The court had asked the poll panel to provide its report to the producer of the movie.
"The committee is of the considered view that the public screening of the movie 'PM Narendra Modi' during the period of model code of conduct will tilt the electoral balance of the particular political party, therefore, the public screening of the movie 'PM Narendra Modi' should not be allowed till last date of poll on May 19 in the ongoing elections.
The report further said, "Eulogising of the character Narendra Modi is very clear right through the movie. More than biography, it is hagiography." It also said that the biopic "produces a political environment where an individual acquired cult status. The construct of this 135-minute movie is unabashedly uni-dimensional, which puts an individual on a higher pedestal through use of specific symbols, slogans and scenes. It ends up eulogising an individual, giving him a saintly status".
Senior advocate Mukul Rohatgi, appearing for film producers who have challenged the EC's ban on the biopic's release till the current general elections are over, had earlier told the top court that the poll panel has taken the decision after watching a two-minute promo, and not the entire movie.
EC's counsel Amit Sharma had said that the entire movie was not available and a decision to ban the release was taken after watching the trailer.
The bench had then asked the poll panel to watch the full movie and then take an informed decision on whether its release should be banned or not.
The EC had on April 10 stalled the release of the film until the polls end, asserting that any biopic material with the potential to disturb the level-playing field during elections should not be displayed.
The commission, in a separate order, had also directed the producers "not to exhibit the film titled 'PM Narendra Modi' till further orders". The film was earlier set to release on April 11.
Acting on the complaints of political parties, including the Congress, the poll panel had also said that any poster or publicity material concerning any such certified content, which either depicts a candidate (including prospective) for the furtherance (or purported to further) of electoral prospects, directly or indirectly, shall not be put on display in electronic media in the area where MCC is in force.
The Left had also opposed the release of the film, saying it would disturb the level-playing field for other parties in the election and was in violation of the Model Code of Conduct.
The Modi biopic, starring Vivek Oberoi, has been the most-talked about movie this election season. Directed by Omung Kumar, it tells the story of Modi's rise to power from his humble beginnings.
The apex court had on April 9 dismissed a petition filed by Congress leader Aman Panwar for a stay on the release of the biopic, saying the Election Commission would be an "appropriate" place to seek the redressal.
The apex court had said it was not entertaining the petition for the stay on the release of the film which would be "premature" in view of the fact that the movie is yet to be certified by the Censor Board.
It said even if the film is released on April 11, as claimed by the Congress leader, it will be appropriate for him to seek a redressal from the Election Commission.

'Space power' India: What Modi's speech means for polls, national security

Prime Minister Narendra Modi announced India had joined the US, Russia and China in an elite group of nations that have the capability to target satellites.
In a televised address to the nation, Modi said India has shot down a low Earth orbit satellite, noting the capability was crucial for national security.

"India has today established its name as a space power," Modi said. "Our scientists used an anti-satellite missile to bring down a live satellite, 300 kilometers away in space."
India’s current range of missiles are mostly intended for confrontation with neighboruing rivals China and Pakistan. India has fought three wars with Pakistan and one with China.
Modi’s address comes just weeks ahead of general elections to determine whether he’ll serve a second term as prime minister. Voting will take place in seven phases between April 11 and May 19, with results to be announced on May 23.
‘Nationalist fervour’
“This address is an indication that Mr Modi possibly is not very sure of the election campaign going completely his way,” said Nilanjan Mukhopadhyay, a political analyst who has written a Modi biography, adding he may have violated the election code of conduct. “It’s an attempt to bolster nationalist fervour by another means,” Mukhopadhyay said, after realising the patriotic mood generated by tensions between India and Pakistan was “not sufficient” to continue until the end of elections.
Tensions between India and Pakistan escalated dramatically when India launched airstrikes on February 26 to attack what the government said was a terrorist training camp inside Pakistan. The government in Islamabad retaliated the next day, shooting down an Indian jet. India’s initial airstrikes were in response to a suicide bombing in Kashmir that killed 40 paramilitary troops.
“This is significant. India can now take out Chinese communication systems, for instance,” said Bharat Karnad, Delhi-based security expert at the Centre for Policy Research. “The PM is going to derive whatever political benefits he can in election season -- why would he give up the chance?”
In 2007, China first used a ballistic missile to destroy its own old weather satellite orbiting 535 miles (861 km) above Earth; Russia has been testing a missile that could be used to strike and destroy a satellite or ballistic missile.
India’s space and missile programs—along with its economic growth of more than 7 percent and a bid for a permanent seat in the United Nations Security Council—is major part of the country’s efforts to build up its defense capabilities and establish itself as a world power.

Animal spirits? Military posturing has clouded India's stock market rally

It’s amazing what a bit of chest-beating and military posturing can do.
India’s war of words with and air strikes on Pakistan have reinvigorated the re-election campaign of Prime Minister Narendra Modi. Opinion polls (if you believe them) are predicting a bigger margin of victory for Modi’s National Democratic Alliance than they were two months ago. A creeping skepticism that had taken hold after the ruling coalition’s poor performance in state elections has started to recede as nationalist sentiments take over.
Foreign investors are buying into the newfound conviction. Since Feb. 22, $5.6 billion of net foreign equity investments have flowed in, more than reversing last year’s net outflows. India has attracted more money than any other Asian market in the past month. Offshore mutual funds’ allocations had been at multi-year lows before the rebound. The benchmark stock index has risen about 9 percent from its low in late February.
Industrial and financial companies have found favor, defying doubts over banking-system vulnerabilities and the central bank’s independence. Larsen & Toubro Ltd., Adani Ports & Special Economic Zone Ltd., VA Tech Wabag Ltd. and Dilip Buildcon Ltd. are among those that have posted gains. Optimists appear to be betting that Modi’s re-election will boost investment activity in sectors such as construction and infrastructure — and particularly the prime ministers’ pet projects.
VA Tech Wabag, for instance, has risen almost 40 percent from its January low after losing close to 60 percent of its market value last year. The builder of water and sewage-treatment plants has a contract to help clean up the Ganges river, an effort Modi has denoted as a priority.
Historically, pre-election stock market rallies in India tend to find their footing as “certainty around continuity of power” emerges, according to Sanford C. Bernstein & Co. analysts. Typically, cyclical sectors lead, especially mid-cap stocks. In every Indian election since 1996, auto, cement and energy companies have posted double-digit returns in the six-month period leading to the final results. So the emerging excitement isn’t completely surprising.
However, this rally doesn’t have much grounding in macroeconomic reality. Growth is slowing, and investors have plenty of reason to be cautious: There are questions over what’s really guiding monetary policy after tussles between the central bank and government; the banking system has more than $200 billion of nonperforming loans; and nonbanking finance companies have their own travails, as my Bloomberg Opinion colleague Andy Mukherjee has documented.
Stock investors may be placing too much faith in the prospects for a post-election investment spurt. Growth in proposed infrastructure outlays has been lackluster, capital expenditure — after initially rising — has dropped, and signs of an industrial slowdown persist. Passenger car sales have been slowing. The hope that private investment and capital expenditure will rise has been repeatedly dashed. Meanwhile, corporate plant and machinery capacity has declined to lower levels than during the 2009 and 2014 pre-election periods.
The takeaway: Things aren’t hugely better going into this election.
Sure, some one-time indicators paint a rosy picture. Urban inflation may be low, but depressed agricultural prices weigh on rural incomes. An uptick in loan growth mainly reflects a transfer of assets from nonbank financing companies. The best investors can hope for may be an extension of Modi’s populist policies: more cash transfers, rural handouts and self-serving projects.
The S&P BSE Sensex Index is currently trading at almost 24 times one-year forward earnings, double the multiple of 14 going into the 2014 elections. In 2009, valuations climbed to 20.4 times earnings from 10.2 times over the course of the year, only to retreat within six months.
Warmongering can ignite animal spirits. They can just as easily explode.

PM urges supporters to take 'main bhi chowkidar' pledge to fight corruption

Prime Minister Narendra Modi Saturday urged his supporters to take the 'main bhai chowkidar' (I too am watchman) pledge, saying he is not alone in the fight against graft and social evils.
"Your Chowkidar is standing firm & serving the nation. But, I am not alone. Everyone who is fighting corruption, dirt, social evils is a Chowkidar. Everyone working hard for the progress of India is a Chowkidar. Today, every Indian is saying- #MainBhiChowkidar," he wrote on Twitter.

Narendra Modi
✔
@narendramodi
Your Chowkidar is standing firm & serving the nation.
But, I am not alone.
Everyone who is fighting corruption, dirt, social evils is a Chowkidar.
Everyone working hard for the progress of India is a Chowkidar.
Today, every Indian is saying-#MainBhiChowkidar
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He also posted a little over three minute video to drive home his message.
Modi has often described himself as a "chowkidar" who would neither allow corruption nor get corrupted himself.
Congress president Rahul Gandhi has been repeatedly hurling the "chowkidar chor hai"(watchman is the thief) jibe at Modi to claim irregularities and favouritism in the Rafale fighter jet deal, a charge the BJP-led government has rejected.

Stressed power projects to Delhi Metro: Key cabinet decisions today

Prime Minister Narendra Modi-led cabinet took several key decisions on a range of issues on Thursday. Finance Minister Arun Jaitley announced the decisions in a press briefing.
Here are the key decisions made by the Cabinet:
GoM's recommendations on stressed power plants approved
The Union Cabinet Thursday approved recommendations of a group of ministers (GoM) relating to stressed power projects including grant of coal linkage for short-term power purchase agreements (PPAs).

The recommendations approved include grant of coal linkage for short-term PPAs, allowing existing coal linkage to be used in case of termination of PPAs due to payment default by distribution companies and procurement of bulk power by a modal agency against pre-declared linkages. Read more
Govt to invest Rs 26,000 crore in 2 thermal, 1 hydro power plants
The government on Thursday approved an investment of Rs 25,816 crore for two thermal power projects and a hydro electric plant.
The Cabinet Committee on Economic Affairs (CCEA) cleared a proposal for investment of Rs 10,439.09 crore for 1320 MW Buxar Thermal Power Project in Bihar. Read more
NHPC's acquisition of Lanco's Teesta hydro-electric project
The Union Cabinet Thursday approved state-owned NHPC taking over debt-laden Lanco's 500 MW Teesta hydro-electric power project in Sikkim.
Finance Minister Arun Jaitley said NHPC has also been allowed to spend Rs 574.04 crore to complete balance work at the project. Read more
Delhi Metro phase IV
Three out of six corridors of the Delhi Metro's proposed Phase IV were approved. These corridors are - Mukundpur-Maujpur, RK Ashram-Janakpuri West and Aero City-Tughlakabad.
There will be 17 underground and 29 elevated stations in the three corridors whose total length will be 61.679 km. Read more
Rs 2,790 cr interest subvention on loans to sugar mills gets approval
The Cabinet approved Rs 2,790 crore interest subvention for extending loans by banks to sugar mills.
This is in addition to Rs 1,332 crore already approved by the Cabinet Committee on Economic Affairs (CCEA) in June 2018. Read more
Rs 4,500 crore plan to revive 'un-served, under-served' airports
In a bid to boost regional air connectivity, the Cabinet Thursday approved a proposal to "revive and develop" a number of "un-served and under-served airports" across the country at a cost of Rs 4,500 crore.
The government said the move will further boost economic development in these cities or towns as well as surrounding areas in terms of job creation and related infrastructure development. Read more
Ordinance on reservation roster for faculty positions in varsities cleared
The Union Cabinet cleared an ordinance on reservation mechanism for appointment of faculties in universities.
Following a series of protests, Human Resource Development Minister Prakash Javadekar had earlier said the Centre was committed to restoring the reservation roster in educational institutions. Read more
Busy Bengal-Odisha section gets third railway line
The Cabinet has approved the construction of a third railway line between Narayangarh in West Bengal and Bhadrak in Odisha.
The new railway line will be 155-km long. Read more
Cabinet allows Alternative Mechanism to decide on price, timing of CPSE strategic sale
To fast-track strategic sale of CPSEs, the Cabinet Thursday allowed Alternative Mechanism to decide on the timing, price and quantum of shares of a state-run company to be put on the block for outright sale. Read more

Modi to launch PM-Kisan scheme in Gorakhpur; Rs 2000 each for 10 mn farmers

Prime Minister Narendra Modi on Sunday will launch the Rs 75,000-crore Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme in Gorakhpur, Uttar Pradesh, by transferring the first instalment of Rs 2,000 each to over 10 million farmers, a senior agriculture ministry official said.
Another 10 million farmers will be covered in the next 2-3 days, the official said.

In the interim Budget 2019-20, the central government had announced the PM-KISAN scheme under which Rs 6,000 per year will be given in three instalments to 120 million small and marginal farmers holding cultivable land up to two hectares.

The scheme has been made effective from this fiscal itself and as a result, farmers would get one instalment before March-end. This programme is part of the government's effort to address farm sector distress, caused by lower sales realisation on bumper production of foodgrains, oilseeds, sugarcane, cotton and horticulture crops.
ALSO READ: On farm distress, reform and dole
"To provide an assured income support to the small and marginal farmers, the government is launching the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)," the Union agriculture ministry said in an official statement on Saturday.
The ministry in its statement did not mention the number of farmers who will get their first instalment of Rs 2,000 on Sunday.
However, the senior official said over 10 million farmers from 14 states, including UP and Karnataka, will get their first instalment on Sunday and 10 million more beneficiaries, spread over 28 states and one UT, would get their instalment in the next 2-3 days.
Explaining the modalities of cash dole, the ministry said this income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs 2,000 each.
"The Centre will transfer the amount to the bank account of the beneficiaries through State Notional Account. For transfer of benefit, district-wise beneficiaries' list has to be certified and uploaded by the states/UTs on the PM-KISAN portal of the central government," it added.
ALSO READ: First tranche of PM-Kisan scheme likely to cover 24 million farmers
The funds would be electronically transferred to the beneficiary's bank account by the Centre through State Notional Account on a pattern similar to MGNREGS.
"PM-KISAN would not only provide assured supplemental income to the most vulnerable farmer families, but would also meet their emergent needs especially before the harvest season. PM-KISAN would pave the way for the farmers to earn and live a respectable living," the statement said.
A small and marginal landholder farmer family for the purpose of the calculation of the benefit has been defined as "a family comprising of husband, wife and minor children (up to 18 years of age) who collectively own cultivable land up to two hectares as per land records of the concerned State/UT".
The existing land-ownership system in the concerned states/UTs will be used for the identification of beneficiaries. Those whose names appear in land records as on February 1, 2019, are eligible for the benefit.

Past is passe, future is in a $10-trn economy, start-ups galore: PM Modi

Prime Minister Narendra Modi Saturday said India is on the way to becoming the fifth largest economy in the world and the government is taking reform measures to make the country a $10-trillion economy and world's third-largest economy.
Speaking at the ET Global Business Summit 2019, Prime Minister said, 'we want to make an India of countless start-ups, we want to lead the global drive towards renewable sources of energy'.
He said his government inherited an economy in complete policy paralysis, plagued by runaway inflation and rising current account deficit. Reforms in the last four and half years have changed the picture. "Change is clearly visible today," he said.
Laying out his vision for making India a $10-trillion economy, Modi said what happened in the past is not in our hands, but what will happen in the future is firmly in our hands. We often lament at missing the industrial revolutions in the past, but today it is a matter of pride that India is an active contributor to the 4th Industrial Revolution," Modi said.
At $2.6 trillion, the Indian economy is currently ranked sixth in the world behind the US, China, Japan, Germany and the UK.
The prime minister listed out some of the initiatives like launching Vande Bharat - India's fastest train, building 100 smart cities, ensuring rapid progress in over 100 aspirational districts.
We want to give our people energy security, we want to cut down on import dependence, we want to make India a world leader in electric vehicles and energy storage devices, With these goals in mind, let us re-dedicate ourselves to create a New India of our dreams, said the Prime Minister.

Day after being flagged off, Vande Bharat Express breaks down, twice

A day after it was flagged off by Prime Minister Narendra Modi, India's first semi-high speed train, Vande Bharat Express, ran into some trouble twice on Saturday while returning to Delhi from Varanasi, officials said.
The first incident occurred around 15 kilometres from Tundla junction in Uttar Pradesh, with officials calling it a case of "skidding wheels".

"This disruption appears to be because of a possible cattle run over. The train was returning at night and cattle run over is a possibility at odd times," Railway spokesperson Smita Vats Sharma said, adding this was not a commercial run, which is scheduled to start from Sunday.
According to sources, including several journalists on board the train, it was stuck near Tundla for over an hour.
"It was a case of skidding wheels after the train ran over cattle," Northern Railway CPRO Deepak Kumar said.
After removing the obstacles, the train resumed its journey to Delhi at around 8:15 am, officials said.
However, it suffered a breakdown after 40 minutes at Hathras Junction and could resume journey after 10:20 am and is now running at a speed of less than 50 kmph, sources said.
Vande Bharat Express had hit 180 kmph during a trial run on a section of the Delhi-Mumbai Rajdhani route, thus becoming India's fastest train.
The train had left Varanasi Junction at 10.30 pm for Delhi on Friday, nearly 45 minutes after reaching the holy city on its inaugural journey.
Train 18, which was rechristened Vande Bharat Express by Railway Minister Piyush Goyal, has been manufactured by the Integral Coach Factory, Chennai.

'Shocking beyond words': Start-ups allege angel tax 'terrorism' by I-T dept

Two start-ups have alleged the Income Tax department was harassing them over angel tax, less than 24 hours after Prime Minister Narendra Modi told Parliament how his government's business policies were creating millions of jobs.
The Income-Tax Department withdrew lakhs from the bank accounts of Travel Khanna and Babygogo, for angel tax, an anti-abuse measure called so for its impact on investments made by angel investors in start-ups.
The Income-Tax Department froze four bank accounts of Travel Khanna (Duranto Technologies Pvt Ltd) and withdrew about Rs 33 lakh on the pretext of tax liability on investments raised by the company from angel investors in 2015-16. The accounts were unfrozen, but the money has not been returned.
This is despite government assuring start-ups that no coercive action would be taken on the angel tax. The government invited investors and start-ups earlier this week to take their feedback and resolve the issue of angel tax. Travel Khanna employs 60 people and indirectly impacts 2000 other jobs.
ALSO READ: What kind of startups will get angel tax exemption? I-T dept to decide soon
“We had raised investment from several angel investors in the FY 2015-16. Since past several months, Income Tax department has been asking certain set of questions over raised amount including the validity of the investors under Section 68. We were duly answering their questions and complying with the legal process including sharing that we were a startup being pioneers of our field and having some very reputed and respected investors,” Pushpinder Singh, founder and CEO of TravelKhana, told Entrackr, a media platform for startups.
Despite the process going on, the Income Tax assessment officer allegedly passed an assessment order asking TravelKhana to pay taxes on the angel money received.
“We had appealed against the order and put in multiple requests for abeyance with the assessment officer on 15 January 2019 and again on 4 February 2019. Without accepting or denying our abeyance request and totally against the principles of natural justice and government assurances on no coercive actions, the IT department froze our bank accounts and withdrew all money in all the accounts in various banks striking a death blow to the company and the several employees and small businesses associated with it,” Singh told Entrackr.

ALSO READ: New definition to give start-ups, investors a bigger angel tax breather
The Income Tax department had asked TravelKhana to pay Rs 2.33 crore as angel tax. “Following the assessment order, we appealed to IT department for relief. In parallel we also requested assessment officer to keep the order in abeyance on January 15,” said Singh. Around 20 days later, Singh appealed against the assessment order on February 4 through a lawyer outlining that matter is very critical and is a question of survival for the firm. “The very next day IT department froze one State Bank of India and three ICICI bank accounts containing Rs 33 lakhs,” added Singh.
Following the freezing and deduction of amount from bank accounts, Singh and his team approached senior Income Tax officials. However, they denied any immediate relief and asked them to appeal. “Appeal in normal times takes at least a year to resolve.” said Singh.
The only relief Singh and his company received from CBDT is that bank accounts are operational and an early hearing of their appeal. However, the earliest to expect will be not less than 3 to 6 months but nothing left for transactions, pay salaries or continue running the business. ‘‘If it is true, it is shocking beyond words. That the IT Dept actually froze a startup's bank a/c & withdrew money for the #AngelTax demand,’’ tweeted Amit Ranjan, founder Slideshare and architect of DigiLocker.
‘Yes – it’s true. This was my own reaction on Tuesday evening when it happened. The bank manager said that 4 IT inspectors came and forced the bank manager to make DDs from all accounts. The bank manager said that this is commonplace these days,’’ Pushpinder Singh of Travel Khanna said on Twitter.
Yes - its true. This was my own reaction on Tuesday evening when it happened. The bank manager said that 4 IT inspectors came and forced the bank manager to make DDs from all accounts. The bank manager said that this is commonplace these days. https://t.co/Xp8OEJV2TY
— Pushpinder Singh (@pushpinder) February 8, 2019
‘‘This is clearly #AngelTax terrorism by IT Dept. One gets the feeling, the tax enforcement team is oblivious of what DIPP + StartupIndia are doing to resolve AngelTax issues amongst startups. The silo-ed nature of govt depts is to blame here!,’’ Ranjan said in response to the tweet.
‘‘I am suspending all angel investing till the time the Angel Tax is abolished,’’ tweeted angel investor Rajesh Sawhney, who is also the founder of InnerChef. ‘‘@amitabhk87 - Sir this is tax terrorism if ever there was one. Startups have to struggle against so many challenges. This will sound the death knell of Angel Investing,’’ said Kunal Khattar, founder at VC firm AdvantEdge.
‘‘There is a special place in h*ll for this kind of regressive behavior by Indian tax officials against a startup for INR 33 Lakhs - disappointed. It’s unlikely I will ever invest again in Indian legal entities of startups via Operators Studio #shocked #angeltax #isthisnewindia,’’ said angel investor Soumitra Sharma.
The founder of another start-up Babygogo tweeted: ‘‘we are hit in as well, our bank balance went into negative on Feb 6th (-72 lakhs), thanks to the IT dept. But luckily we didn't have much money in there prior to that.’’

Modi says formal, informal sectors creating jobs after employment criticism

The country's informal and formal economies are creating jobs, said Prime Minister Narendra Modi on Thursday, rejecting criticism that he has failed to create employment — a key promise of his government.
Modi told Parliament that professionals like chartered accountants (CAs), cab aggregators and transporters were creating jobs.

"In the last four years, 6.35 lakh (635,000) new professionals have come up. You think if a doctor opens a clinic or a nursing home then he will employ only one person? Or does a CA only employ one person? No," he said.
"If we talk about the informal economy, in the transport sector, 36 lakh (3.6 million) commercial vehicles, 1.5 crore (15 million) passenger vehicles, and 27 lakh (2.7 million) new autos were bought. Have the vehicles just been parked as showpieces," he said.
"There has been a huge rise in taxi aggregator services. Do you think there were no new jobs and vehicles are driver-less?"
India's economy has been expanding by seven per cent plus annually, but uneven growth has meant that new jobs are not keeping pace. And critics say the government's claims of economic success have sounded increasingly hollow.
Finance Minister Piyush Goyal on February 1 presented an interim budget — the last of his government — that poured extra money into support for farmers and a tax cut for low-income workers, but that came at a cost, with the country letting its fiscal deficit targets slip this year and next.