Panel against auctioning of flying rights to neighbouring countries
A panel that includes India’s top federal official did not favour a proposal that had sought auctioning of flying rights to airlines flying to the country from its immediate neighbourhood. The Committee of Secretaries (CoS), which met in the second week of February, did not favour the Civil Aviation Ministry’s proposal on the ground that bilateral flying rights are treaties signed between two countries on the basis of equality and are not candidates to go under the hammer. The Prime Minister’s Office and the federal cabinet had asked the specially constituted CoS to examine the proposal made in June. “Barring the aviation secretary, all other members, including the cabinet secretary, were of the view that bilateral entitlements are signed between two countries on the basis of equality and that auctioning them may not be the right idea,” said a government official, who was aware of this issue. The aviation secretary, however, differed, citing European precedence to back the rights auction proposal. The announcement was part of the civil aviation policy the Cabinet had cleared in June. It required designated carriers of countries within 5,000 km flying radius and seeking flying rights beyond those already agreed to bid for bilateral privileges. Both Indian and overseas carriers said the policy militates against universally-applied principles of bilateral entitlements. Aviation minister Ashok Gajapati Raju and his then junior Mahesh Sharma had divergent views on the issue too. To further examine the proposal, the Prime Minister’s Office and the cabinet ordered the constitution of the CoS: It is headed by the cabinet secretary. Members of the CoS are secretaries of the Department of Industrial Promotion and Policy and of the aviation, and foreign ministries and chief executive of planning think-tank, the NITI Aayog. “The CoS has asked us to examine the issue again and we are discussing it internally and with stakeholders, including airlines,” said an aviation ministry official, who did not want to be identified. Analysts welcomed the initial rejection by the CoS. “The decision to auction bilateral (entitlements) is legally and strategically unwise and I am happy that this decision is likely to be changed,” said Kapil Kaul, CEO for Centre for Asia Pacific Aviation in India. “India needs a clear bilateral strategy, which is well balanced, equitable and not driven in one direction. Instead of auctions, we need a new framework for bilateral allocation,which is in national economic interests and one which can be defended later against any audits.” Jonathan Schoop Jersey
SpiceJet says India’s $85 billion plane orders still not enough
ndia’s airlines have ordered about 850 planes valued at about $85 billion in recent years. SpiceJet Ltd, a budget carrier, says that’s still not enough to meet demand. SpiceJet, which last month ordered as many as 205 Boeing Co. jets worth $22 billion, is being rather conservative with its purchases, the carrier’s chairman Ajay Singh told Rishaad Salamat in a Bloomberg Television interview in Singapore on Wednesday. Demand will surge with more Indians starting to fly, fuelled by economic growth in smaller towns, he said. “With all the orders that all the Indian airlines have placed, counting for replacements, we will have 800 planes in 10 years from now,” Singh said. “That’s not a lot of planes. That’s the same number of planes that Southwest Airlines has today.” India — the world’s fastest growing major aviation market –is among battlegrounds in emerging markets for planemakers like Boeing and Airbus Group SE, as a rising middle class flies for the first time. The potential has made Singapore Airlines Ltd. and AirAsia Bhd. set up local units that are grappling with poor infrastructure, cut-throat fare wars and taxes that make jet fuel the costliest in Asia. “We have to keep on developing the infrastructure,” Singh said. “A lot of the growth in India is not happening in Mumbai and Delhi, it’s happening in tier-2, tier-3 towns.” Stoking Demand Indian Prime Minister Narendra Modi has offered to fund some of the airlines’ losses and to subsidize landing and parking charges if they fly to remote parts of the country as part of a recent policy. Modi has also vowed to cap airfares to stimulate demand in unserved airports, which constitute about 80 percent of the country’s total airports and airstrips. SpiceJet, which was forced to shut down briefly in 2014 after running out of money, has many options to finance its plane orders, said Singh, an original co-founder who returned to run the carrier again. Those include potential funding by the Export-Import Bank of the US as well as sale-and-leaseback arrangements, he said. IndiGo, India’s biggest airline, has ordered 430 Airbus A320neo jets on top of a previous order for 100 planes, making it the model’s biggest customer in the world. Go Airlines India Pvt has ordered 144 of the same model, while Vistara, a joint venture between Tata Sons Ltd. and Singapore Airlines, said it is looking to order narrow- and wide-body planes. Bruce Irvin Womens Jersey
Qatar Airways looking at potential Indian carriers for collaboration
Qatar Airways, which is interested in partnering with Indian carrier for expanding its air operations to India is looking at potential Indian carriers for collaboration, as it is eyeing to tap India’s civil aviation space. Sources said the airline is exploring for an opportunity to tie-up with existing Indian carrier, both regional and airlines’ having pan India presence. A senior official with the Ministry of Civil Aviation (MoCA) said that the Indian government had discussed the issue with the Qatar government – Qatar Airways is a state-owned airline – and the latter has evinced interested. MoCA has reciprocated Qatar government’s plan and has written to the Qatar government to start an airline in India. Qatar government had evinced interest during bilateral negotiations between the two countries for increased number of flights and expanding its aviation market to India recently. Government sources said it has also suggested Qatar Airways to explore for partnering with Indian carriers for the regional connectivity scheme (RCS), which is aimed at connecting the remote airports of the country. Quandre Diggs Jersey
Jayant Sinha: Demand soaring, India needs to triple airport capacity
Citing the rising demand of domestic aviation in the country, Union Minister of State for Civil Aviation, Jayant Sinha today stated that the construction of new greenfield airports and new terminals in Pune and Delhi will meet the demand. Speaking at an interview with CNBC TV18, Jayant Sinha further mentioned the need to triple airport capacity in the country. The aviation minister said that the ministry has a detailed plan for 30 airports for fifteen years. Stating that the aviation sector in the country has grown extraordinarily over the years, Sinha claimed that several safety measures had also been undertaken along with the steps to grow industries. Sinha further said that while the aviation ministry have several initiatives to ensure growth in the number of commuters, issues relating safety and security are primarily focused. The Union Minister also said that he is working on amending Airport Authority of India (AAI) Act to monetise its land bank for the development of airports and is also outsourcing terminals for brownfield airports. J.T. Brown Jersey
Hitting an air-pocket
The paradox is striking. On the one hand, more and more Indians are taking to the skies. But on the other, airlines’ bottom-lines are shrinking. In the recent December quarter, domestic air passenger traffic grew 23 per cent y-o- y to 2.72 crore. But all the three listed carriers — IndiGo Airlines, Jet Airways and SpiceJet — saw their earnings dip in what is considered a seasonally strong quarter. The profit of IndiGo and SpiceJet fell about 25 per cent y-o- y, while that of Jet Airways saw a much steeper fall of about 70 per cent. What gives? Two factors — rising costs, especially that of fuel, and lower ticket prices — took a toll. With crude oil staging a comeback the past few months, the cost of aviation turbine fuel (ATF) headed north. As a percentage of sales, the carriers spent about 4-7 percentage points more on fuel in the recent December quarter, compared with the year-ago period. But rather than increasing ticket prices to offset the impact, the carriers took sharp cuts. Yields in the quarter fell about 16 per cent y-o- y for IndiGo, 10 per cent for SpiceJet and 3 per cent for Jet Airways. Blame this on price wars in the intensely competitive Indian skies. The problem got compounded by demonetisation during the quarter with airlines slashing fares to offset the impact of the high-value note ban on passenger traffic. So, despite high passenger numbers, airlines’ revenue growth lagged far behind costs. This high-cost, low-fares pincer has, in fact, squeezed many airlines for most of this fiscal year. For the nine months ended December 2016, IndiGo’s profit is down about 13 per cent y-o- y while that of Jet Airways has fallen nearly 55 per cent. SpiceJet did very well until September 2016 but it too buckled in the December quarter. Its nine-month profit is up about 14 per cent y-o- y, a fraction of the doubling until the September half-year. Past perfect The weak show this year is in sharp contrast to 2015-16 when airlines’ profits zoomed. The rout of crude oil enabled low fares that drew in passengers in droves. SpiceJet swung from a big loss a year before to a massive profit, Jet Airways saw its earnings jump more than 150 per cent, and IndiGo’s already healthy profit grew over 50 per cent in the year ended March 2016. The market, a slave to earnings, raised a toast. When crude oil and ATF were at their nadir in January-February 2016, airline stocks were touching their zenith. On the bourses, SpiceJet had quintupled and Jet Airways had tripled over two years while IndiGo nearly doubled from its already pricey listing in November 2015. But with earnings slipping over the past year, punishment has been swift and severe. From their peaks in early 2016, the Jet Airways stock has been marked down more than 50 per cent, IndiGo is down nearly 40 per cent and SpiceJet has slipped 30 per cent. No surprise that there is no word yet on GoAir’s initial public offer that was to hit the market this fiscal. The ongoing March quarter could also be weak for airlines, given the base effect of low ATF cost in the year-ago period. Is there a rainbow on the horizon? A few factors should help airlines in fiscal 2017-18. One, oil prices should stay in the current $55-$60 range, given the global demand-supply dynamics. This should keep ATF cost stable; sharp increases seem unlikely. At these levels, most airlines should continue making reasonable profits. Capacity addition Also, with the effect of demonetisation gradually waning, price cuts should moderate. Given the huge potential in the country, passenger growth should continue at a healthy pace, provided tickets are not pricey. That said, the mega aircraft orders of several players, including IndiGo, SpiceJet and GoAir, could mean seat supply growing faster than passenger demand. This could keep yields under check, something that seems to be underway already. IndiGo, the market leader with a nearly 40 per cent share, has been adding aggressively to its fleet and network. But the airline has also taken the sharpest cut in yields. Calibrated capacity expansion in sync with passenger demand and pricing discipline will be key for sustainable growth of the sector. Improved airport infrastructure in big cities to cater to growing demand and fruition of the plan to put Tier II and Tier III cities on the flying map are also imperative. Thurman Thomas Womens Jersey
Cabinet approves doubling of solar power capacity to 40,000 MW
The Cabinet Committee on Economic Affairs has approved the enhancement of capacity from 20,000 MW to 40,000 MW of the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects. A press statement said that the enhanced capacity would ensure setting up of at least 50 solar parks each with a capacity of 500 MW and above in various parts of the country. Smaller parks in Himalayan and other hilly States, where contiguous land may be difficult to acquire in view of the difficult terrain, will also be considered under the scheme. The capacity of the solar park scheme has been enhanced after considering the demand for additional solar parks from the States. Solar equipment manufacturing Speaking at a press conference after the Cabinet meeting, Renewable Energy Minister, Piyush Goyal, said that the government is working on a policy to encourage solar equipment manufacturing in India. He said, “There is considerable interest to set up solar equipment manufacturing in India. The benefit of M-Sips will also be extended to solar equipment manufacturing in India.” Solar parks Solar Parks and Ultra Mega Solar Power Projects will be set up by 2019-20 with the Central Government financial support of Rs. 8,100 crore. The total capacity when operational will generate 64 billion units of electricity per year which will lead to abatement of around 55 million tonnes of CO2 per year over its life cycle. It would also contribute to the long-term energy security of the country and promote ecologically sustainable growth by reduction in carbon emissions and carbon footprint, as well as generate large direct and indirect employment opportunities in solar and allied industries like glass, metals, heavy industrial equipment etc. The solar parks will also provide productive use of abundant uncultivable lands which in turn facilitate development of the surrounding areas. Solar power park developer All the States and UTs are eligible for benefits under the scheme. The State Government will first nominate the Solar Power Park Developer (SPPD) and also identify the land for the proposed solar park. It will then send a proposal to MNRE for approval along with the name of SPPD. SPPD will then be sanctioned a grant of up to Rs. 25 lakh for preparing a detailed project report (DPR) of solar park. Thereafter, central financial assistance of up to Rs. 20 lakh/MW or 30 per cent of the project cost, including grid-connectivity cost, whichever is lower, will be released as per the milestones prescribed in the scheme. Solar Energy Corporation India (SECI) will administer the scheme under the direction of MNRE. The approved grant will be released by SECI. The solar parks will be developed in collaboration with the State Governments/UTs. The State Governments/UTs are required to select SPPD for developing and maintaining the solar parks. Arun-III project The government also approved a 900-MW hydro power project to be set up in Sankhuwasabha district of Nepal at a cost of Rs. 5,723.72 crore. The decision to approve the Arun-III project was taken at a meeting of the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi here today. “The Cabinet today approved setting up of Arun-III project at an estimated cost of Rs. 5,723.72 crore. The project is expected to achieve financial closure by September this year. The projected will be implemented within five years,” Goyal told reporters at a briefing here. Jonathan Ogden Jersey
Pre-devpt works at Navi Mumbai airport site enter final stretch
The last tranche of pre-development works for the Navi Mumbai International Airport (NMIA) — in this case, major actions like flattening a hill and diverting a river to create a level ground for the runways and terminals — is in the final stretch. Two city infrastructure companies are in the race for the Rs 545-crore tender for the project and the board of Cidco, the nodal agency for the execution of the major infrastructure facility, is likely to finalize the bid on February 23. The design of the recourse canal for the Ulwe river and guidelines for diverting it have been provided by IIT-Bombay and the Central Water and Power Research Station that is based in Pune. Thanks to the location of the airport, when it is ready — the chief minister has said that the first flight will take off in 2019 — flyers can count on a pleasing view taking off or touching down. Two rivers, the Gadhi on the north and the Ulwe on the south, flank the two east-west parallel runways. A mangrove park coming up on a small island off the Gadhi as it falls into the Panvel creek and the non-fruit-bearing trees — so as not to attract birds — being planted along the rivers promises to bring green cheer to passengers. There will be vast stretches of natural spaces, which will be a sea change from the present terminal blighted by the concrete swell and slums of Santacruz. Both the rivers are seasonal. Gadhi is a spill from the Dehrang dam, fed by the rain water from Matheran hills, and the Ulwe originates from another hill further south of the airport. It currently flows across the core area of the airport into the Panvel creek. As part of the pre-development works, the river will be diverted through a recourse channel parallel to the runway on the south side and it will eventually flow into the Moha creek. The hill that is being flattened occupies a chunk of the western side of the airport core area. It will be cut till 8m above sea level and the debris will be used to level the runway area to that level. The high flood line in the area is 4.5metres and so the airport is being kept at a higher level. Reggie Bush Authentic Jersey
Kochi:Flyover projects get new lease of life
Giving a new lease of life to Vyttila and Kundanoor flyover projects that were on the backburner for quite some time, the National Highways Authority of India (NHAI) started a feasibility study a few days ago. The study, which includes the overall development of EdappallyThuravoor stretch of the highway and the construction of flyovers, will be completed within a period of four to five months. After starting the construction of flyovers at Edappally and Palarivattom, the state government decided to construct these flyovers. If NHAI constructed the flyovers, then motorists would have to pay a toll and to avoid this scenario and minimize land acquisition, the state government decided to construct them on its own. The previous-UDF government had given the administrative sanction for the project. Later, the state finance department raised objection citing fund crunch. When the LDF govern ment assumed office, PWD wrote to NHAI to take up the job. But, NHAI turned down the request and last month, chief minister Pinarayi Vijayan held discussions with the Centre. Following the chief minister’s request, NHAI started the feasibility study. “We have already started the feasibility study. It will be completed in four or five months,” said NHAI project director Chadrasekhar Reddy . Officials with the PWD’s NH wing sad NHAI would be in charge of the overall development of the EdappallyThuravoor stretch. “NHAI would be preparing a detailed report on developing the stretch. As the stretch has become a four-lane way , NHAI would be focusing on providing additional facilities.The project would include measures to ensure smooth flow of vehicles as well as accident control and safety measures,” a top official of the NH wing. Mike Reilly Womens Jersey
NTPC Floats Tender For 10,000 MW Solar Power Project
NTPC Limited has opened tenders for a solar power renewable energy with a capacity of 10,000 MW, while fixing the target to be achieved till 2025 at 25,000 MW. D K Sood, Regional Executive Director of DBF (Dadri, Badarpur and Faridabad), NTPC Limited on Monday, meanwhile, spoke about the price gap between thermal power and solar power tariff rates. The average rate of power generated by coal-based projects of NTPC — India’s largest state-owned generation utility — is Rs 3.20 per unit. However, private solar power provider Amplus Energy Solutions recently bid to produce solar energy at Rs 2.97 per unit, the lowest ever, at its plant in Rewa Madhya Pradesh. Sood said that NTPC is mulling large-scale installation of solar panels in Andhra Pradesh, Uttar Pradesh, Chhattisgarh and Madhya Pradesh, where several acres of land are available for such projects. Presently, NTPC has three solar power plants, of 5 MW capacity each, in Dadri, Faridabad and Badarpur. “A 5 MW solar power plant was set up under the Jawaharlal Nehru National Solar Mission on 20 acre near Ash Mound (Eco Park) in Dadri. Solar panels made up of polycrystalline material are being used. The estimated cost of this project is approximately Rs 48.6 crore,” said Sood. Brandon Montour Womens Jersey
BSES dues to NTPC, units swell to over ₹2,200 crore
BSES, a joint venture between Delhi government and Anil Ambani’s Reliance Infrastructure, cumulatively owes NTPC and its joint-venture power-generation firms ?2,265.35 crore. Out of these dues, BSES owes NTPC’s JV company Aravali Power Company Ltd (APCPL) ?1,562 crore as penalty, interest and power off-take charge. NTPC owns 50 per cent stake in APCPL, and Haryana Power Generation Company Ltd (a Haryana government company) and Indraprastha Power Generation Company Ltd (a Delhi government company) own 25 per cent each. Reliance Infrastructure distributes power in Delhi through its two subsidiaries — BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL). According to the BSES website, BRPL supplies power to 21 lakh customers in South and West Delhi, while BYPL caters to 14 lakh customers in Central and East Delhi. BSES’s net dues to APCPL stood at ?961 crore before power supply was clipped in September 2016. The company has paid back only ?158 crore of these dues till date, according to officials in the know. However, the total payout for BSES to APCPL has grown to ?1562 crore with the levy of penalty and interest for non-payment. Those associated with the development told BusinessLine that APCPL stopped supplying power to BSES companies from September 2016 due to the swelling dues. As of March 31, 2016, BRPL owed ?528 crore; these dues swelled to ?754 crore by September 2016. Of the total dues, BRPL has paid back ?142 crore. BYPL owed ?266 crore as of March 31, 2016; these dues in the current year stood at ?173 crore. BYPL has paid ?16 crore of these dues till date. Of the other dues the BSES companies owe to NTPC, BRPL owes ?346.56 crore — this is inclusive of the monthly bill of ?170 crore for February 2017. BYPL owes ?357 crore — this amount too is inclusive of the ?80 crore to be paid for February 2017. Financial stress In an emailed statement, BSES said the company is under huge financial stress due to non-liquidation of regulatory assets, which are over ?16,000 crore as on March 31, 2016. It said: “As compared to this, total over-dues (including Late Payment Surcharge) payable by BSES discoms to NTPC and APCPL are ?444 crore and ?1,490 crore, respectively. BSES discoms are also making concerted efforts to address the situation and clear pending dues in a just and equitable manner.” The payment of dues to power utilities by BSES discoms is sub judice in the Supreme Court. “We are awaiting the Supreme Court judgement, which will clear the path for recovery/liquidation of regulatory assets,” it said. Jason Myers Authentic Jersey