SBI plans to raise Rs 5,000 cr via long-term bonds
State Bank of India (SBI) plans to raise Rs 5,000 crore through issuance of long-term bonds in domestic and overseas markets to finance infrastructure and affordable housing in the current fiscal. “A meeting of executive committee of the central board of the bank is scheduled to be held on November 10, 2016, inter alia, to examine and decide for issuance of long-term bonds of Rs 5,000 crore in domestic and overseas markets for financing of infrastructure and affordable housing (Infra Bonds) during financial year 2017 on private placement in tranches at appropriate time,” SBI said in a BSE filing. Ben Tate Authentic Jersey
Roads Sector Plagued By Lack Of Political Will, Not Shortage Of Funds: Nitin Gadkari
The ministry for road transport is not facing any shortage of funds and is confident of achieving the road construction target for the current fiscal year, Union Transport Minister Nitin Gadkari said. “You are all welcome to invest in the sector but I want to give out the message that I am not depending on anybody (for money),” Gadkari said at a Bloomberg event on Monday. Speaking about where this money is coming, he said that his ministry’s budget is Rs 55,000 crore for the current fiscal, which will amount to Rs 2 lakh crore over the next three years. In addition, the ministry can raise up to Rs 70,000 crore by issuing bonds and another Rs 1 lakh crore by monetisation of toll projects, he said. Further, ports are also generating profits and project turnover in that segment is around Rs 4,000 crore. “So money is not the problem. Strong political will is the most important thing,” Gadkari said. Will The Ambitious Target Be Met? The minister said he is confident of achieving the ambitious target of road construction set for this fiscal. At the start of the year, the National Highways Authority of India (NHAI) set an ambitious target of awarding 15,000 km of road and highway projects while an additional 10,000 km worth of projects were to be awarded by the road ministry. The NHAI later scaled back its target to 6,600 km. But he added that the system has to be geared to make time-bound decisions, “I am very much confident, but there is problem with the system. We need some improvement in the mindset of people working for government. We need positive, transparent and time-bound approach, fast track decision making and team work.” The problem lies not with land acquisition or shortage of funding, but with “the mindset of the people working in the system”, he said. Our toll income is Rs 10,000 crore. If we can securitise this income we get Rs 2 lakh crore from the market. We can raise bonds worth Rs 70,000 crore. We can issue masala bonds, we have people ready to invest in it. Nitin Gadkari, Road Transport & Highways Minister But Pace Is A Problem.. However, he said that fewer projects were awarded so far in this fiscal year compared to the first half of the last fiscal, party because several projects are stuck in green courts. Apprehension on the part of banks to lend to infrastructure projects also slowed down project approvals. But the minister sounded confident about the future as he said that as many as 95 percent of stalled road projects are now back on track. For every project, we have conducted 8-10 meetings and we have solved the problem. At the time when I took charge, there were 403 projects that were stalled with a total cost of Rs 3.85 lakh crore. Presently we have only 4-5 projects pending. Nitin Gadkari, Road Transport & Highways Minister The sentiment towards the infrastructure sector has now improved, he added. However, the problems plaguing the sector have not been completely solved, he said. “In public private partnership (PPP) projects, the health of investors is not good. All companies face a lot of problems. At the time, I took charge, they were in ICU, now they are shifted to general ward,” he added. David Mayo Womens Jersey
Govt urges farmers to join hands for greening of highways
Expressing grave concern over the rise in pollution levels, Minister of State for Road Transport & Highways and Shipping Mansukh Lal Mandaviya on Monday urged for greater public participation, especially of farmers, in development and maintenance of highways as “green highways’ and said it would help curb the rising pollution levels. “The current pollution levels in Delhi are an indicator of how we have erroneously adopted the European industrial model, while abandoning our very own age-old Indian Ayurvedic traditions, thus moving away from nature,” he said, addressing the maiden national convention on ‘Innovations in Green Highways’. The Minister also suggested linking of the Green Highways Project with the ongoing Swachh Bharat Mission. “There would be a greater success in greening highways if the local farmers are also involved,” the Minister said adding if farmers are roped in plantation, maintenance, and protection of trees, it would give them a sense of responsibility and ownership. National Highways Authority of India Chairman, Raghav Chandra said he was happy that his organisation while constructing the National highways would also be associated with restoring the environment through aesthetic greening. Chandra said NHAI was confident of awarding 6000 km of National highways for greening by the end of the year, as per a statement from Road Transport and Highways Ministry. He stressed that that greening of National highways would improve the scope for rural employment and create jobs for lakhs of people associated with it. The statement said National Green Highways Mission (NGHM) also inked several pacts including with ITC for undertaking plantation, management & sustainable harvesting activities along NHs besides with Yes Bank for funding roadside plantations under CSR programme and TERI technical collaboration for fostering research & innovation in Green Highways. “NGHM will also sign MoUs with JK Papers for undertaking plantation, management & sustainable harvesting activities along NHs; INBAR for promoting bamboo based applications in Green Highways; World Bank for strengthening Green Highways Programme,” the statement said. The Ministry of Road Transport & Highways has promulgated Green Highways (Plantations, Transplantation, Beautification & Maintenance) Policy – 2015 to undertake highways plantations along National Highways. For the quick roll out of the scheme NGHM, NHAI has been entrusted with the responsibility of implementing entire green highways programme for the Ministry, NHIDCL & NHAI. Zach Miller Womens Jersey
AAI to offer space for various projects
The Airports Authority of India (AAI) has plans of offering space for medical centres, fuel pump and Aviation Skill Development Centres on city side of the Swami Vivekanand Airport in Raipur as part of its mega development and expansion plans, officials informed. Notably, AAI has also drawn up ambitious plans for creating infrastructure for an international level business and leisure destination on the city side of Swami Vivekananda Airport in Raipur. The project aims to provide a world-class environment, in which people can work, play and stay while catering to the surge in traffic of corporate travellers and tourists, officials informed. The entire land 80 acres of land earmarked for developing various types of infrastructure may be provided to multiple entities / developers for modular development on 30 year lease or to a single entity under PPP concessional framework for development of the city-side for 30 year lease, they informed. The AAI believes that development of the city side of the airport would make the region an ‘economic hub’ with exceptional connectivity, officials informed. The city side development of the airport also envisages setting up of hotels and convention centers with an ‘Airport Commercial District’ which would also include ‘Airport Business District’, and a host of world-class passenger convenience amenities among others. Nikolay Kulemin Authentic Jersey
AirAsia executives alerted board, Tatas about lapses in business practices
Senior executives of AirAsia India, the Tata joint venture airline that was severely critiqued by ex-Tata Sons chairman Cyrus Mistry and which is now conducting an internal investigation, had repeatedly complained to the company board and the Tata group about serious lapses in business practices. But no action was taken by any major stakeholder. Mistry was also directly informed. Two major complaints highlighted to the board and the Tata group were that AirAsia India was being “run” by Malaysian parent AirAsia Bhd, in contravention of FDI rules, and that the Indian venture was being “overcharged” by the Malaysian company. Indian rules allow foreign airlines to own up to 49% in domestic airlines but effective management control must remain with the Indian partner. Tata Sons, the holding company of the Tata group, and AirAsia Bhd of Malaysia own 49% each in AirAsia India. AirAsia India chairman S Ramadorai and director R Venkataramanan own the remaining 2%. Tony Fernandes, chief of AirAsia group, and Venkatramanan, a former executive assistant to Tata Sons interim chairman Ratan Tata, have been on the board of AirAsia India since inception. Bo Lingam, deputy CEO of AirAsia Bhd, joined the board as a nominee director on March 31, 2016. Ramadorai has been chairing the board since June 11, 2013. PK Ghose, a Tata veteran, replaced ? Bharat Vasani, chief legal counsel of the Tata group, as nominee director on November 24, 2015. The board also consists of Ashok Sinha and Maya Swaminathan Sinha, who joined on August 11, 2016. ET has reviewed nearly 100 pages of company records and email correspondence between executives and directors. Five people familiar with the matter spoke to ET. They did not want to be identified. AirAsia India executives warned board chairman Ramadorai and director Vasani about potential losses, and the way the airline was being run. Some executives had questioned Fernandes about entering into what they termed as costly financial deals with associate companies of AirAsia Bhd. Email correspondence between February 2014 and July 2015 highlights these complaints. All deals mentioned in these exchanges continue to exist. Fernandes, Tata Sons, Ramadorai, Venkatramanan, Vasani, former AirAsia India CEO Mittu Chandilya and ex-CFO of AirAsia India Vijay Gopalan did not respond to emailed questions seeking comment. MISTRY RESPONSE Mistry “promptly reacted” to indications of wrongdoing and “also escalated the matter to the Tata Sons board”, a person close to Mistry told ET. “A thorough investigation was sought. The details of fraudulent transactions were discovered through an audit. It was taken to its logical conclusion and an FIR was filed against the resistance that has been discussed in the media in recent days,” the person said. Gopalan had warned about the breach of FDI law in an email to Ramadorai, copying Chandilya, on February 14, 2015. This mail also highlighted other issues. He had said, for example, that “revenue management has to be real time and handled by persons familiar with the Indian marketplace and its behaviour”, but the entire process is in Kuala Lumpur (the headquarters of AirAsia Bhd). “This is a significant issue from an effective management control perspective also,” he had written. ET had reported on December 17, 2015 (“Dark Clouds over AirAsia India”) that AirAsia India was facing problems related to feuding shareholders, mounting losses, a severe cash crunch and top-level exits. Cofounder Arun Bhatia, then a junior partner who eventually exited the venture, had told ET then that the management control of the airline was in Kuala Lumpur. ISSUE OF OVERCHARGING Other issues brought to Ramadorai’s attention included allegations that the Malaysian parent was overcharging the Indian airline. One mail from the ex-CFO referred to AirAsia Global Shared Services (AGSS), a wholly-owned subsidiary of AirAsia Bhd. “We have been mandated to use AGSS for outsourcing aspects of finance and accounting, HR functions, procurement and IT,” Gopalan wrote. He added that the budgeted payment to AGSS for 2015 at Rs 9.5 crore is “significantly higher than what it would have been if we were to in-house the entire operations”. There was also a warning that using Tune Insurance, another associate company of the AirAsia group, would reduce AirAsia India’s earnings by 50%. There was also a dispute over selecting an advertising agency. “We have decided not to go with PHAR, which is an AA (AirAsia) Group Company. This could lead to lesser rates as well,” Gopalan noted. AirAsia India picked a public relations firm, Buzz PR. Fernandes was able to push these deals to AirAsia associate companies thanks to a brand licensing agreement (BLA) between AirAsia Bhd and AirAsia India. BLA exists alongside the shareholders agreement and became a key instrument of control, according to people familiar with the matter. BLA and the shareholders agreement were signed on April 17, 2013. Fernandes signed on behalf of AirAsia India and Lingam on behalf of the Malaysian airline.BLA directed that “The licensee (AirAsia India) shall observe and comply strictly with the following operating requirements which are to be determined in AirAsia’s sole discretion”. This provision was to apply to in-flight services, engineering, finance, flight operations, network planning, sales and distribution, among other matters. “The BLA superseded the shareholders agreement on every aspect of AirAsia India’s operations,” said aperson familiar with the matter. Another person familiar with the matter said knowledge of the BLA was limited to the board and senior executives. “It was not shown to the rest of the organisation. And nobody, not even the board, questioned or debated the financial arrangements.” CLEARING PAYMENTS Another complaint from AirAsia India executives to directors related to authority over clearing payments and expenses. Companies typically assign the responsibility of approving payments over a specified limit to the board and payments related to the day to day expenses to the management. In AirAsia India’s case, day to day approvals on key payments, travel, initial offer letters to employees etc came from Fernandes, said a person familiar with the matter. “This process was followed because the authority of this director (Fernandes) was agreed by the
Pilots may face strict action for failing flight duties
Pilots coming late for duty as well as falsely reporting sick are likely to face strict enforcement action, with the government proposing stringent regulations in this regard. The proposal comes against the backdrop of instances where pilots did not adhere to their assigned flight duties. To deal with such incidents, the civil aviation ministry has proposed new norms under the Aircraft Rules, 1937. As per the proposal, likely to be finalised by the second week of December, pilots who are found to falsely report illness to escape flight duty and those unwilling to follow the dynamic roster, among others, will be considered as acts against public interests liable for enforcement action. In a release today, the ministry said cases often have come to the notice of DGCA where pilots employed with air transport undertakings do not adhere to their assigned flight duties, at times reporting sick. “This has a bearing on flight safety and public interest, leading to last-minute flight delays or cancellation, thereby causing inconvenience and harassment to the passengers,” it noted. Any act on the part of pilots wherein they are found to falsely report illness to escape flight duty, coming late to the aircraft, not undertaking the flight even after reporting for flight duty or unwilling to follow the dynamic roster well within the FDTL would face strict action. FDTL refers to Flight and Duty Time Limitations. Such activities “which result in last-minute flight disruptions and may imperil safety of aircraft operations would be treated as an act against public interest and the pilots would be liable for enforcement action against them”, the ministry said. The proposal in this regard is being put up for public consultation. Kurt Coleman Womens Jersey
West Bengal government accepts Centre’s air connectivity scheme with rider
The West Bengal government today accepted the regional connectivity scheme in civil aviation as proposed by the Centre, but at the same time, threatened to pull out of it if the state had to bear in excess of the 20 per cent share as has been committed by the Centre under the Viability Gap Funding (VGF). “The VGF is to be shared between the Ministry of Civil Aviation and the state governments in the 80:20 ratio. We shall pull out of the scheme if the state has to bear in excess of the 20 per cent share as committed by the Centre,” state Transport Secretary Alapan Bandyopadhyay said while briefing reporters on the outcome of a meeting of the Parliamentary Standing Committee on Transport with the state government. “The chief minister has discussed several issues relating to our state at the meeting. She has urged the MoCA to restrict the flight fare from un-served and under-served airports to Rs 2,500. The Centre will have to bear 80 per cent, while for the state, it will be a maximum of 20 per cent if the fare exceeds the limit,” Bandyopadhyay said. While the meeting was chaired by West Bengal Chief Minister Mamata Banerjee, Civil Aviation Secretary RN Choubey led the visiting delegation. The Ministry of Civil Aviation (MoCA) had proposed a fare of Rs 2,500 per hour of flying, for around 500 kms, under the regional connectivity scheme. The chief minister also urged the MoCA for direct flights from Netaji Subhas Chandra Bose International Airport in the city to European destinations, Bandyopadhyay said, adding that the MoCA has assured her to look into the possibilities. The state government believed that four airports in the state — Balurghat, Durgapur, Cooch Behar and Malda — would benefit once the scheme became operational, the Transport Secretary said. The chief minister also urged the MoCA for the revival of Behala Flying Club, he said, adding that Choubey assured her that the Centre would float an expression of interest (EOI) shortly, inviting private agencies for the purpose. The MoCA would also form a three-member committee, comprising the state Transport Secretary, an Airport Authority of India (AAI) official and a Defence Ministry official, to look after the maintenance of Bagdogra airport near Siliguri. It may be noted that the main objective of the National Civil Aviation Policy, 2016 was to make regional air connectivity a reality. Von Miller Authentic Jersey
DGCA proposes new rules to enable import of foreign registered aircraft
India’s aviation regulator, the Directorate General of Civil Aviation, has proposed a new regulation which will enable operators to import foreign registered aircrafts and operate them on foreign registration with Indian crew. “This will also make the aircraft leasing environment user friendly,” the civil aviation ministry said in a statement. Currently, any aircraft that is being brought to India has to be first registered with the DGCA. The rule has been seen as a hurdle in taking planes on lease by airlines at a time when India is pushing for increased regional air connectivity. Exemption from this rule will make it easier for the lessor to take back the aircraft in case of a dispute with the airline operating the aircraft. The move reduces the risk of the lessors’ planes getting stuck in India and hence may encourage them to formulate easier leasing contracts with lower rentals. Last month, the civil aviation ministry had called a meeting of aircraft lessors as part of efforts to ensure availability of aircraft to implement the regional connectivity scheme. Mohamed Sanu Authentic Jersey
Nudge to Centre on airports, terminals
The aviation regulator has requested the Centre to speed up construction of new airport terminals and additional airports near metro cities, voicing concern about an anticipated rise in congestion and lack of infrastructure at major aerodromes. Officials in the Directorate General of Civil Aviation said airports in major cities appeared headed towards a “clogged future” amid plans by domestic airlines to acquire more aircraft and increase passenger load next year. The DGCA estimates that scheduled commercial airlines are set to add at least 40 new and leased aircraft by next March and an additional 25 aircraft by end-2017. Indian carriers have also lined up delivery of about 550 planes over the next six years. “Most of the functional airports, particularly in tier I and tier II cities, are operational almost at full capacity. Unless we come up with new terminals and additional airports at these places, things are going to get very difficult,” a DGCA official said. “We have expressed this concern to the civil aviation ministry through a communiqué.” On October 4, the DGCA announced the winter schedule for domestic Indian carriers with at least 21 per cent more flights than last year. The winter schedule starts from October 30 and runs till March 26, 2017. “This has happened because of about 23 per cent rise in domestic traffic this year so far. We expect the trend to continue,” another official said. Marlon Mack Jersey
APTEL has allowed fuel cost pass through for power plant, says Reliance Power
Anil Ambani-led Reliance Power today said that one of its arms Vidarbha Industries Power has got relief from Appellate Tribunal for Electricity (APTEL) as it has upheld fuel cost pass-through in the tariff for its 600 MW plant in Maharashtra. This will allow the company to recover enhanced cost of power based on higher fuel cost. “APTEL judgement provides regulatory clarity & certainty for VIPL,” Reliance Power said in a statement. Vidarbha Industries Power Ltd (VIPL), a subsidiary of Reliance Power Limited, had challenged Maharashtra Electricity Regulatory Commission (MERC) on 20 June, which partially disallowed fuel costs for FY2014-15 and FY2015-16. The said MERC order pertained to truing up for FY14-15, provisional truing up for FY15-16 and Multi-Year Tariff for FY16-17 to FY19-20. MERC had earlier approved the Power Purchase Agreement for Butibori Project of VIPL under Section 62 of Electricity Act. “APTEL found merit in VIPL’s contentions against the disallowance of fuel costs in the said MERC order. APTEL observed that once PPA is approved under Section 62 of Electricity Act, the basic principles of tariff determination as per Section 62 have to be followed, where the fuel cost is pass-through in tariff,” Reliance Power said in the statement. “APTEL observed in its judgement that actual fuel mix used must be allowed while undertaking the prudence check. APTEL has accordingly asked MERC to rework fuel cost pass-through based on the decisions in its judgement,” it further added. FAQ Womens Jersey