DGCA panel to check airlines’ OTP claims after IndiGo complains of irregularities
Your airline may not be sharing the correct on-time performance (OTP) figures, believes the Directorate General of Civil Aviation (DGCA), which has constituted a panel to look into the fudging of OTP data by airlines. “In view of some discrepancy observed in computation of OTP data, the DGCA has constituted a committee to look into the matter so as to ensure the correctness by end of February ,” DG of DGCA BS Bhullar told ET on Thursday. Bhullar said the OTP data, in the meantime, for December 2016 will be published as per practice. The committee will be headed by joint director general Lalit Gupta. The panel was formed after IndiGo complained to the DGCA that there are discrepancies in the way airline data is collated by airlines and airport operators. IndiGo had, in a letter to the DGCA, complained that the procedure to compute OTP data has irregularities and need to be corrected. IndiGo had pointed out irregularities in OTP calculation at airports and had sought a probe into the data collection at that airport and other places too. In its letter, IndiGo’s EVP (operations control) Sanjeev Ramdas had said that irregularities are a matter of grave concern for IndiGo. “OTP is a very important indicator of performance of any airline including In diGo. Any inaccurate data in public domain is bound to affect general perception and goodwill of any airline including IndiGo, which will hamper the level playing field in the aviation industry. It is a matter of grave concern for IndiGo that there is more variance in favour of competing airlines,” Ramdas had said in his missive. A source alleged that irregularities in collating data happen, while it is compiled manually adding that the error percentage in reportage of data by airlines could be as high as 14%. “The arrival time of an aircraft is registered when it gets attached to an aerobridge and then that time is sent by a computer to airport operators. Irregularity in data happens when this data is transferred manually to an excel sheet.Same is the case with takeoffs. A lot of new-age aircraft (like A320 Neo) are equipped with a system that automatically sends the information to air traffic control and the airline and airport official.But carriers, which operate oldgeneration aircraft, report the takeoff time verbally , where they could report wrong data,” said an airline executive. Another airline executive said one airline suddenly does not trust the data, which had kept it number one all these years. “Any airline, which does not have new-age aircraft and reports data manually, can only gain one to two minutes by fudging the data, in case it is doing it,” said another executive. Kevan Miller Jersey
AirAsia comes under CBI lens
A month after Enforcement Directorate registered a case of foreign exchange violations against AirAsia India, the Central Bureau of Investigation on Thursday claimed that it is also examining the matter in which there are allegations of fraudulent transactions of Rs 22 crore involving non-existent entities in India and Singapore. Sources in the CBI said that they have not registered a preliminary enquiry or regular case (FIR) in the matter but they are looking into the matter to see if it calls for registering a criminal case. “We are scrutinising the AirAsia documents right now,“ said the CBI officer. When contacted, an AirAsia India spokesperson said, “AirAsia India has not heard from the CBI. Should we receive a call from CBI, AirAsia India will furnish all information that they seek.As you are aware, the airline has already put it in the public domain that it is pursuing the ongoing investigation. AirAsia India subsequently filed a private complaint with the Bangalore police in this regard.“ The issue was flagged by ousted chairman of Tata Sons Cyrus Mistry soon after he was replaced on October 24. He wrote in his let ter to Tata Sons board and trustees of Tata Trusts that, “Board members and trustees are also aware that in the case of AirAsia, ethical concerns have been raised with respect to certain transactions as well as the overall prevailing culture in the organization. A recent forensics investigation revealed fraudulent transactions of Rs 22 crore involving non-existent parties in India and Singapore.“ Presently , ED is probing the matter under FEMA (foreign exchange management act) and has already sought documents from the company. It is looking into a specific transaction of over Rs 12 crore, out of Rs 22 crore, made to a Singaporean firm. Mistry had alleged that “executive trustee Mr Venkataraman, who is on the board of Air Asia and also a shareholder in the company , considered these transactions as non-material and did not encourage further study“. It was only at the insistence of the independent directors, one of whom immediately submitted his resignation, that the board decided to belatedly file a FIR, Mistry had said in his letter. He claimed it was Tata who had completed negotiations with AirAsia, but early in his tenure as the chairman of Tata Sons he (Mistry) was asked to table a proposal for the JV with AirAsia at a Tata Sons board meeting. In 2013, Tata Sons had joined hands with Malaysian carrier AirAsia and Arun Bhatia’s Telestra Tradeplace to start low cost carrier AirAsia India. The carrier had to wait for nine months before taking off. Antwaun Woods Womens Jersey
Suzlon bags 105 MW order from Axis Energy Group in Andhra Pradesh
Wind turbine maker, Suzlon Group today said that it has bagged 105 mega watt (MW) order from Axis Energy Group in Andhra Pradesh. “The project consists of 50 units of S111 90 metre tubular tower, each with a capacity of 2.1 MW. Located in Andhra Pradesh, the project is scheduled for completion in two phases,” the company said in a BSE filing. While, the first phase will be completed in March 2017 and the second phase will be completed in June 2017, it said. Stefan Matteau Authentic Jersey
Bad news for fuel consumers: Get ready to pay more for petrol, diesel soon
You will have to pay more for fuel in the new year. Opec powerhouses Saudi Arabia and Iraq, which supply nearly 40% of oil India imports from West Asia, on Thursday initiated steps to bring the world’s honeymoon with low oil prices to an end. Saudi Arabia, the world’s largest oil exporter which two years ago sparked the oil price crash with hefty discounts, raised premium on grades of crude shipped to Asia and the US and initiated talks with buyers to cut supplies by 3-7% in February . Simultaneously, news agency reports said Iraq, the second major Opec exporter and currently among India’s top two oil suppliers, has initiated steps to pare output.Both the developments indicate the November agreement among Opec members and other major oil exporters such as Russia is well on its way to being implemented, proving sceptics wrong. The target is to cut output by 1.8 million barrels a day, nearly equal to India’s daily import of 1.9 million barrels, with a view to sucking out stockpiles and rebalance market. This is bad news for fuel consumers in a country such as India which imports nearly 80% of its oil needs. Through much of 2015 and 2016, fuel bill shrunk for consumers as oil prices tumbled some 70% from 2014 high of $112 a barrel. Lower oil prices reduced India’s import bill and eased subsidy burden on the government giving it legroom to mop up additional money for social sector spending by raising excise on fuels five times. But the good times appear to be coming to an end. Already, petrol prices were raised thrice and diesel prices twice in December as the cost of Indian Basket–the mix of crude bought by India–rose 21% from its November level. Any upward movement in global crude, combined with the rupee’s weakness against the greenback, invariably accentuates the impact on pump prices. International Energy Agency and Opec have projected oil prices to remain in the region of $60 a barrel through 2017 and go higher in 201820. If that is so, the government may be forced to reduce excise duty, which it had hiked to deny consumers the full benefit of low prices, to avoid popular anger as it heads for the general elections in 2019. Until then, keep paying more for fuel. Kyle Singler Womens Jersey
Innovation & Technology to be the key drivers for IndianOil in coming years,” Director (Refineries), IOC
Safety, Sustainability and Environment Protection shall continue to be a top priority in all our business operations, Sanjiv Singh, Director (Refineries), IndianOil said. Team IndianOil is fervently embracing technological advancements in its refineries and building capabilities of its people to be in readiness to seize promising opportunities in the changing energy landscape. Innovation & technology shall be the key drivers for the Corporation in the coming years, said Singh in his New Year address. Singh reiterated the team’s commitment for efficient, smooth and cost-effective supplies for meeting the energy demands of the country. He said that IndianOil Refineries are making steady progress towards ensuring 100 percent supply of BS-IV grade fuels from 1 April 2017 onwards. Singh also shared that India has made an ambitious and very challenging plan to leapfrog directly from BS-IV to BS-VI emission norms by April 1, 2020 i.e., within a span of just three years, a feat being attempted perhaps for the first time by any country in the world. The IndianOil Refineries are also gearing up for its timely implementation. Alejandro Villanueva Womens Jersey
Hindustan Petroleum Corp Ltd mulls 25% stake in 60 million tpa refinery
Hindustan Petroleum Corp Ltd (HPCL) is planning to pick a 25% stake in a US$30 billion mega refinery and petrochemical complex being set up in Maharashtra, India. Indian Oil Corporation (IOC) will hold 50% stake and Bharat Petroleum Corp Ltd (BPCL) will hold the balance 25%, in the 60 million tpa refinery and petrochemical facility- India’s biggest refinery. The refinery and petrochemical complex will be set up in two phases, of which the first phase will have a capacity of 40 million tpa and will have a naphtha cracker; and an aromatics and polymers production facility. While the first phase will cost between Rs 1.2 and 1500 billion and will be started in 5-6 years from the date, land is acquired, the second phase will have a 20 million tons refinery costing between Rs 500 and 600 billion
Global companies offer ONGC deepsea drilling rigs for KG gas find
As many as 10 international offshore drilling contractors including Transocean Inc have offered best-in-class deepsea drilling rigs to Oil and Natural Gas Corp (ONGC) for its KG-D5 gas field developments. As many as 10 international offshore drilling contractors including Transocean Inc have offered best-in-class deepsea drilling rigs to Oil and Natural Gas Corp (ONGC) for its KG-D5 gas field developments. ONGC had floated a tender to charter hire two deepwater drilling rigs and one anchor moored rig for bringing gas in Bay of Bengal block KG-DWN-98/2 or KG-D5, which sits next to Reliance Industries’ flagging KG-D6 fields, to production. “We have received tremendous response to the tender. International drilling contractors have bid very aggressively,” an official said. ONGC is among the very few explorers around the world who are actually going ahead with the development campaign despite low oil prices. “And naturally, contractors have no new job outside and so they are queueing up here,” he said. Transocean Offshore International Ventures Ltd offered Deepwater Millenium, Discoverer India and Discoverer Luanda deepwater rigs while Ensco Maritime Ltd offered two of its rigs, Ensco 8500 and Ensco 8501. Other bidders include Seadrill Orion Ltd, Drillship Kythnos Owners Inc, Dupont Maritime LLC, Dynamic Drilling & Services, Ensco Maritime Ltd, Queiroz Galvano Leo Gas, Seadrill Orion, Universial Energy Resources Ind, Vantage International management Co and Japan Drilling Co. ONGC is investing USD 5.07 billion for developing Cluster-II discoveries in KG-D5 block to flow natural gas from June 2019 and oil by March 2020. The 7,294.6-sq-km deepsea KG-D5 block has been broadly categorised into Northern Discovery Area (NDA 3,800.6 sq km) and Southern Discovery Area (SDA 3,494 sq km). The NDA has 11 oil and gas discoveries while SDA has the nation’s only ultra-deepsea gas find of UD-1. These finds have been clubbed in three groups Cluster-1, Cluster-II and Cluster-III. Gas discovery in Cluster-I is to be tied up with finds in neighbouring G-4 block for production but this is not being taken up currently because of a dispute with RIL over migration of gas from ONGC blocks, the official said. From Cluster-II, a peak oil output of 77,305 barrels per day is envisaged within two years of start of production. Gas output is slated to peak to 16.56 million standard cubic meters per day by end-2021. Cluster-2A mainly comprises of oil finds of A2, P1, M3, M1 and G-2-2 in NDA, which can produce 77,305 bpd (3.86 million tonnes per annum) and 3.81 mmscmd of gas. Cluster-2B, which is made up of four gas finds R1, U3, U1, and A1 in NDA envisages a peak output of 12.75 mmscmd of gas, the official said, adding that peak output is likely to last 7 years. Cluster-III is the UD-1 gas discovery in SDA in ultra- deepsea that poses technological challenges. A.J. Klein Authentic Jersey
Summit Group to develop $500m LNG terminal in offshore Bangladesh
Summit Group has secured a contract from Petrobangla to build a floating liquefied natural gas terminal at offshore Moheshkhali Island within Chittagong division of Bangladesh. Under the contract, Summit Group’s Summit LNG Terminal Company will set-up floating facilities within 18 months after the entering a final agreement. The floating terminals will have a daily supply capacity of 500 million cubic feet of natural gas, reported Thedailystar.net. For every 1,000ft³ of natural gas, the LNG will cost the Bangladeshi Government $0.45. Summit Group will transfer the terminals to Petrobangla after operating them for 15 years. “We want to ensure constant supply of primary energy for the country by implementing this project.” The project will be developed in collaboration with US-based GE, which will serve as an equity investment partner. Facilities will also contain floating storage and re-gasification unit, reported Thefinancialexpress-bd.com. Summit Group chairman Muhammed Aziz Khan was quoted by Thedailystar.net as saying: “We want to ensure constant supply of primary energy for the country by implementing this project.” Khan claimed that LNG is not only cost-effective, but also a more eco-friendly alternative. Last month, Petrobangla signed an agreement with India-based Petronet to construct a LNG re-gasification terminal on Kutubdia Island, as well as a pipeline. This project is estimated to be $950m. The country is exploring new ventures as it is facing shortage in gas supply. The current supply is around 2,700Mcfd, while it requires 3,300Mcfd. Michael Irvin Authentic Jersey
Mongolia to build oil refinery from India’s $1 billion credit
Mongolia intends to stop importing petroleum products when its new oil refinery begins operation. The country plans to spend $ 1 billion credit from India’s Export-Import Bank for construction of the oil refinery, news.mn reports. The landlocked central Asian country hopes to save hundreds of millions US dollars by producing its own petroleum products. Every year the country spends nearly $ 1 billion on imports, practically all from Russian refineries. In December alone, the country imported diesel for $219 million and petrol for $172 million. The refinery is expected to be a ‘game changer’ and will help the currently floundering Mongolian tugrik against foreign currency as well as drastically lowering the retail price of petroleum products. Mongolia will also become energy independent from its neighbours; at present 90 percent of all processed petroleum products used in Mongolia are imported from Russia and the crude from the domestic oil fields is all sent to China for refining. The refinery will provide a stimulus for the development of the country’s extensive hydrocarbon resources, mostly located in the east of the country. Another economic possibility would be the creation of a domestic chemical industry and producing plastics. Assuming that the refinery will be able to provide high levels of refining, Mongolia could produce aviation fuel, which, in turn, would reduce ticket costs and boost tourism. Finally, the refinery and all its spin-off enterprises would generate jobs for thousands of people. The new refinery is expected to have an annual processing capacity of 1.5 million tonnes; the crude oil will be transformed into 560 million tonnes of Euro Standard 4.5 fuel, 670 million tons of diesel fuel and 107 million tonnes of liquefied gas. The oil refinery is forecast to generate $1.2 billion in production revenue annually and will have a $43 million net worth. It is expected that the refinery will cover the investment costs within 8-10 years. Seth Roberts Womens Jersey
Infrastructure: Maharashtra plans 10,000 km of road projects under HAM model
With the newly-introduced hybrid annuity model (HAM) slowly becoming popular at the Centre, states too are beginning to adopt the model. Maharashtra’s public works department (PWD) is planning to award about 10,000 km of projects in the next six months. “We have recently come to a decision that these will all be awarded under the hybrid annuity model,” Ashish Singh, principal secretary, PWD, told FE. In the first eight months of FY17, 42% projects, or 1,085 km, have been awarded under the HAM model. Around 45%, or 1,181 km, have been awarded under EPC and just 13%, or 332 km, have been awarded under BOT. In fact, of a total of 6,631 km, the NHAI is targeting to award almost half, or 3,137.54 km, under the HAM route, with the remaining shared between EPC and BOT projects. In the last financial year (2015-16), 72 % of the total projects, or 3,149 km, awarded by the National Highways Authority of India (NHAI) was under the EPC model, 20% (873 km) was under the BOT model and 8% (345 km) was under the newly-introduced hybrid annuity model. Not all infra players want to participate in HAM projects. L&T has decided to adopt an asset-light strategy, as have IRB Infrastructure, ITD Cementation, J Kumar Infraprojects and KNR Constructions. However, a new set of more aggressive road developers such as Dilip Buildcon, MEP Infrastructure, Ashoka Buildcon and others are willing to participate in HAM projects. “Banks are not willing to fund BOT projects nowadays because revenue projections given by developers earlier have mostly failed. Fewer BOT projects have been awarded because there is little appetite for them,” Rohan Suryavanshi, director, strategy and planning, Dilip Buildcon, said. “Only in cases where there is some confidence in the company, banks advance funds. We will take a call on bidding for more HAM projects depending on our balance sheet as we must remain financially sound,” he added. Sapna Seth, associate director, Singhi Advisors, said, “More than the model, it is to do with the financial soundness and working capital which is seeing the emergence of new players for bidding.” According to Alok Deora, an analyst with IIFL Wealth, the new hybrid road projects have helped to reduce the intense competition in BOT and EPC projects. “Some of the BOT and EPC players have stayed focused on their business models. However, as the number of kilometres awarded is strong, there are enough jobs for players in each segment,” he said. Kawann Short Authentic Jersey