New norms to protect direct selling agents
Direct selling companies such as Amway, Oriflame and Tupperware will be barred from charging any entry fee from their agents or forcing them to buy back unsold inventory , guidelines prepared by the consumer affairs ministry to regulate the sector showed. The companies will also have to allow full refund or buy-back guarantee for goods and services sold to direct sellers or agents. This will help protect thousands of housewives and professionals who work part time as agents. The policy will also spell out the difference between a direct selling firm and a “pyramid scheme” to end any ambiguity. Normally, pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, instead of sale of products or services. The direct selling industry has been urging authorities not to treat them as “pyramid” schemes. According to the industry, direct selling businesses are registered with local regulatory bodies under existing laws, while “pyramid schemes” are unregistered. The number of direct sellers in India has almost doubled between 2004 and 2009. In terms of number of direct sellers, India ranked 11th among the top direct selling countries in 2009-10, according to a report by ICRIER (Indian Council for Research on International Economic Relations). The direct selling industry is set to touch nearly Rs 2,000 crore by 2025. It offers self-employment opportunities to men and women and is seen spreading to Tier 1 and 2 towns across the country. Lack of clear guidelines has hurt the direct selling industry as it has often been clubbed with pyramid schemes. The guidelines will be notified soon and states will be asked to adopt them quickly. All firms operating across the country will have to comply with the norms within 90 days, which includes mandatory registration with state government agencies. Lance Lynn Authentic Jersey
NCR gets its second airport in Jewar, Uttar Pradesh
The National Capital Region(NCR) is going to have its second international airport in Jewar, Uttar Pradesh in three years time. The Civil Aviation Ministry has taken an in-principle decision for setting up an international airport at Jewar in Gautam Budh Nagar district. The availability of land in the area and upcoming Assembly elections in Uttar Pradesh may have heavily tilted the balance in Jewar’s favour, which was competing with Bhiwadi in Haryana for the second international airport in the region. Right now, the NCR depends on Indira Gandhi International Airport in Gurugram which will need capacity overhaul in the coming days. As the government’s regional connectivity scheme takes off, the load on IGI Airport is expected to rise. Minister of State (MoS) for Civil Aviation Mahesh Sharma has maintained that once the Regional Connectivity Scheme takes off, the need for a new airport, that would have felt after 5-7 years from now, may be felt in the next three years. Indian Express had reported on Sunday that Mahesh Sharma last week said that over 2,200 acres of land for a second airport has been acquired at Jewar and that the GMR Group, which operates the Indira Gandhi International Airport, would be preferred for developing the project. The proposal would soon be sent to the Cabinet for approval. Jaden Schwartz Authentic Jersey
Civil aviation policy proposals: Hybrid till model across airports will inflate airfares, say experts
This runs contrary to the new policy’s objective of making air travel more affordable. Airport charges are universally determined under single till, double-till and hybrid-till mechanisms. In all cases, airport operator gets a predetermined internal rate of return (IRR) as per the concession agreement. Under single-till mechanism, revenues from both aeronautical (landing, parking and ground handling) and non-aeronautical (duty-free shops, hotels, restaurants and airport infrastructure) segments are taken into account to determine the IRR. However, under the hybrid till method, which is currently being used by joint venture airports, only 30 per cent of non-aeronautical revenue is taken towards IRR, allowing the operator to pocket 70 per cent of the non-aeronautical revenue. The idea is to encourage the operators to expand airport infrastructure. But the lower revenue base compared to single-till method practically prompts the operators to levy higher charges (UDF) on passengers and airlines. Deion Sanders Womens Jersey
All You Need to Know About New Regional Air Connectivity Scheme
The Draft Regional Air Connectivity Scheme will be placed in public domain for three weeks to enable Stakeholders to give their suggestions. After this the details of the scheme would be finalised. To operationalise the Scheme Aircrafts and helicopter operators would be required to assess the demand on various routes and submit their proposal for providing connectivity on such routes. They would be required to earmark certain number of seats on every flight for the RCS. The fare for such seats would be capped based on flight distance and time. An index has also been prepared for airfare caps for the RCS seats for fixed wing aircrafts and helicopters depending upon the distance. Conditions set: Airport Authority of India will be the implementing Agency for the Scheme. The RCS route would have to include un-served airports i.e. airports where there is no scheduled commercial flight or under-served airports i.e. airports which have 7 or less scheduled commercial flights per week. The RCS routes would cover a length between 200 to 800 km. But these criteria would not apply to hilly areas, islands, North-east region and for helicopter operations. The procedure for selecting Airline Operators would be based on reverse bidding mechanism. Two half-yearly cycles would be the basis for inviting and evaluating the proposal. The selected Airlines will enjoy a period of exclusivity on the awarded routes. The exact period would be fixed on the basis of suggestions by Stakeholders. Benefits to airlines: The Central Government will support the RCS Scheme by levying an excise duty of only 2% on Aviation Turbine Fuel (ATF) purchased at RCS Airports for a period of three years. The service tax will be levied at only 10% of the taxable value of tickets for RCS seats for a period of one year. The operating Airline will be free to enter into code sharing arrangement with domestic and international airlines. The State Governments will charge Vat of 1% or less on ATF at RCS Airports for a period of 10 years. It will also provide security and fire services free of cost, besides providing electricity, water and other utility services at concessional rates. Airline Operators will exempt RCS flights from landing charges, parking charges, and terminal navigation landing charges. The selected airlines on their part would be expected to commit 50% of the seats on RCS flights to be sold at the specified airfare cap. They would also be required to maintain a frequency of minimum, three flights per week and maximum seven flights per week. A Regional Connectivity Fund would be created to subsidise the operation of the RCS. The Viability Gap Fund (VGF) would be calculated on normative basis. Lamar Miller Authentic Jersey
Modi push to air-link policy despite NITI demurral on sops
The government’s policy think tank, NITI Aayog, had serious objections to the civil aviation ministry’s Regional Connectivity Scheme (RCS), the draft policy of which was announced last week. The Aayog’s main objection was on the cross-subsidy idea, of levies on trunk routes to fund connectivity to places where an airline would not otherwise wish to go. But Prime Minister Narendra Modi’s support saved the day for the draft scheme. The ministry had suggested such connectivity through revival of near or fully defunct airports. It appealed to the Prime Minister’s Office (PMO) and was, after presentations and questions, able to get the support of the PM. Improving of regional connectivity was a key feature of the National Civil Aviation Policy, unveiled last month. The concept also found place in the ruling Bharatiya Janata Party’s manifesto during the 2014 general elections. RCS proposes to reduce the cost of operation for airlines to places off the main routes through concessions, including through a Viability Gap Fund (VGF). For the latter, the Centre plans a levy on airlines in the trunk routes, pushing up air fares in those. Logan Cooke Authentic Jersey
15 airports in Karnataka can opt for regional link plan
Fifteen unserved airports or airstrips in Karnataka have found a place in a list of 394 facilities across the country that could opt for the regional connectivity scheme. According to an official draft, in south India, Karnataka has the highest number of unserved airstrips of airports that could opt for the ambitious scheme drafted by the Ministry of Civil Aviation “to connect the unconnected” and “serve the unserved or underserved”. The unused airports or airstrips in Karnataka include Ammasandra, Baldota/Koppal, Ballari, Bidar, Ginigera (Hospet), Hassan, Jakur, Kolar, Mysuru (Mandakalli), Raichur, Shahbad, Vidyanagar, Yadgir and Yelahanka. While Tamil Nadu has 13 such facilities, Telangana has 10, AP 4 and Kerala one. West Bengal and Rajasthan have the highest number of facilities (35), followed by Bihar (32) and Uttar Pradesh (29).
90 new small airports in next 12 months
India will push to get 90 new airports up and running over the next 12 months, under a government plan to service smaller cities that have missed out on the country’s air travel boom, officials said. Prime Minister Narendra Modi wants to accelerate growth in the world’s fastest expanding aviation market while encouraging airlines like IndiGo, SpiceJet and Jet Airways to fly more people to and from smaller, often poorer cities. Scores of new airports have been built around the country but many are yet to open because airlines do not see sufficient demand as ticket prices are too high for a majority of Indians. That has raised worries the government is building infrastructure few can afford to use. Civil aviation ministry officials, however, said the government has identified 30 recently-built airports, and another 60 nearing completion, that it says it can get airlines to start flying to soon. Individual states will offer free land and emergency service support to all newly built airports, while landing charges and taxes on aviation fuel will be kept at low levels, they said. Matthew Spencer Womens Jersey
Collaborate to compete in global oil & gas industry faced with low prices
Indian oil companies should form a consortium to acquire & build acreages abroad including India, says Prabhat Singh, Petronet LNG’s MD & CEO. In order to successfully confront the challenges of low oil& gas prices and difficult global economic condition, industry experts believe Indian oil and gas companies should collaborate for scouting oil & gas assets in India and internationally. “Collaborative approach of national oil companies is the right solution to creating oil and gas assets in India to enable it thrive under the low oil and gas price regime. Indian oil sector needs a fiscal regime better than what prevails currently,” said Yash Malik, executive director – corporate planning, ONGC, during a conference on ‘How to survive in low oil & gas price scenario’, organised by PHD Chamber of Commerce and Industry (PHDCCI) on June 30, 2016. Malik also pointed out that in the low price scenario of oil and gas, ONGC is successfully going ahead with joint venture approach. During the conference, Prabhat Singh, managing director & CEO, Petronet LNG Limited, floated a proposal for creation of a consortium or special purpose vehicle (SPV), consisting of companies such as Petronet LNG Limited, Gail, ONGC, Engineers India Ltd and Oil India Ltd (OIL) to jointly bid for prospective properties for exploration of natural gas and as well setting up of LNG terminals in overseas fields, particularly those of Sri Lanka, Bangladesh and the like. Elaborating on the issue of proposed consortium or SPV, Prabhat Singh hinted that it has been conceived by the Petronet LNG at a time when the company expects that the prevailing scenario of low oil and gas price would stay on for another five years and that to thrive on such circumstances, the consortium and SPV approach of national oil companies would be ideal situation to acquire oil & gas including terminal acreages and assets overseas including India. According to him, the Ministry of Petroleum and Natural Gas is aware of it and that the Ministry’s intent is also there on it without disclosing a definite roadmap to convert it into reality. “The idea has been briefly floated and discussed and its conclusiveness should follow as India would be bidding to acquire gas properties and to build LNG terminals in countries like Sri Lanka and Bangladesh for which if India proceeds with collective approach, it would establish and edge over others,” pointed out Prabhat Singh adding that such an approach is also called for under prevailing circumstances to building energy storage facilities and other such assets domestically. Drew Kaser Jersey
Bloated LPG import bill fear
The country’s LPG import bill is likely to increase substantially as non-domestic consumption grew 25.8 per cent during the first two months of the fiscal. It can rise further following the government’s efforts to push cooking gas to BPL (below poverty line) families and transfer the subsidy to the bank accounts of consumers. According to the Petroleum Planning & Analysis Cell (PPAC), LPG consumption grew 7.4 per cent in May and 7.8 per cent during April-May. However, domestic consumption rose only 5.7 per cent in May and 6.1 per cent April- May. Non-domestic consumption increased 21.5 per cent in May, with a cumulative growth of 25.8 per cent during April-May. A non-domestic 19.2-kg LPG refill costs Rs 1,035 in Calcutta, while a subsidised 14.2- kg domestic LPG cylinder costs Rs 423.16. India plans to almost double its LPG imports in the next three years to over 16.5 million tons (mt). The country is looking to import from Bangladesh and Iran besides its traditional sources in West Asia. LPG imports rose 1.6 mt during April-May this fiscal against 1.4 mt last fiscal. The country had imported 8.8mt of LPG at $3.8 billion during 2015-16. However, the spurt in global crude prices can jack up the import cost, analysts said. Brent prices will average around $40 per barrel in 2016 and is expected to average $65-$70 per barrel by 2020. The country imports 40 per cent of its 21mt LPG requirement. This will go up as demand rises by double-digits following the new connections. The high growth in the consumption of non-domestic LPG and the increase in its market share can be attributed to its easy availability, low price and curbs on the diversion of subsidised domestic cylinders. The diversion of cheaper and subsidised cooking gas meant for households towards commercial use has stopped after the government launched the PAHAL scheme for direct transfer of subsidy to the consumers from January 2015. Under this scheme, LPG is being sold to consumers at the market rate while the subsidy is directly credited to their bank accounts. Petroleum minister Dharmendra Pradhan has said more than Rs 210 billion of subsidy has been saved by implementing PAHAL. Besides putting an end to the black marketing of cheap LPG, 33.4 million duplicate, inactive and ghost accounts were detected and blocked. Bulk LPG registered a positive growth of 22 per cent in May and a cumulative growth of 24.2 per cent during April- May. The percentage share of bulk LPG in total consumption went up to 2 per cent in May from 1.7 per cent in the same period a year ago. Rodney Gunter Jersey
Petrobras’ Indian partners fight delay in troubled Brazil oil project
Petrobras has warned its Indian partners in a huge offshore project to not expect oil from the site until 2022, according to sources, a fresh sign of how low oil prices and the state-owned company’s corruption scandal and mountain of debt are dragging on Brazil’s energy industry. The previously unreported, four-year delay in the “super-giant” discovery off the northeastern coast of the Brazilian state of Sergipe is forcing India’s Oil and Natural Gas Corp and IBV Brasil Petroleo Ltd to seek ways to speed up the Petrobras-led project which has cost them $2.1 billion with no return in sight. The delay and pressure from the Indian partners is just one of many challenges for new Petrobras Chief Executive Pedro Parente, named by Brazil’s interim-President Michel Temer in late May amid an ongoing financial crisis. In the face of a massive bribery and kickback scandal and Petrobras’ $126 billion of debt, Parente has pledged to run the company in a more market-friendly way but has declined to comment on individual projects. He has also promised a revamped investment plan by the end of October – though it is unclear whether it will address the Sergipe offshore standoff. In April, Petrobras told IBV, a 50-50 joint venture between state-owned Bharat Petroleum Corp and privately held Videocon Industries Inc, that there will be no oil output from Sergipe “until at least 2022,” an IBV executive told Reuters. A year ago, Petrobras’ promised first oil by 2018. Hoping to speed up development, IBV told Reuters it has offered to arrange up to $10 billion in loans from Indian and other international development banks to finance the Sergipe development – Brazil’s biggest oil prospect outside the prolific subsalt region near Rio de Janeiro where Brazil is pinning hopes of energy independence. “It’s a common and simple loan structure, if Petrobras is willing to provide future output as collateral, it won’t have to pay a penny until oil starts flowing, something we could can probably do by 2020,” the IBV executive said. “But we get the feeling that Petrobras has yet to accept its new, more restricted circumstances,” the executive added. Petrobras told Reuters it has yet to receive a formal proposal from its Indian partners to finance the project. Alshon Jeffery Womens Jersey