Ministry will process Niti Aayog report on Air India sale: Arun Jaitley
The Niti Aayog has given its recommendations on the government disinvesting stake in Air India to the Civil Aviation Ministry, which will take a decision on the matter, Finance Minister Arun Jaitley said on Thursday. “The Niti Aayog has given its recommendations to the Civil Aviation Ministry, which will decide on the process of disinvestment in Air India,” Jaitley said in response to a query on the issue at a briefing here on the three years of the NDA government. According to sources here, the Niti Aayog in a recent report has recommended strategic disinvestment from the loss-making Air India, by which government control would be transferred to a private owner. Air India officials said the national carrier has an accumulated debt of around Rs 60,000 crore, which includes around Rs 21,000 crore of aircraft-related loans and around Rs 8,000 crore working capital. Craig Robertson Authentic Jersey
Government panels to monitor ONGC and Oil India fields
The government is going to monitor oilfields of ONGC and Oil India and ordered setting up separate committees led by a bureaucrat for supervision as part of its broader plan to make these firms more accountable and boost output from their ageing fields that contribute 70% of India’s crude output. The Directorate General of Hydrocarbons (DGH), the technical arm of the oil ministry, has ordered the constitution of the ‘review committees for the purpose of management of oil and gas resources of nomination fields’ of ONGC and Oil India respectively’. Each committee will be chaired by the Director General of DGH and include another official of DGH, and top executives of the oil company, according to the 25th May order. ONGC and Oil India must name their nominees within a fortnight of the order. The committee has the power to review all key matters such as annual work programmes and budgets for exploration, development and production, field development plans of commercial discoveries, and performance of producing or non-producing fields. Proposals for surrender of acreage, appraisal programme, declaration of commercial discovery, “field surveillance” by DGH would also go to the committee. The panel would also review collaboration with licensees or contractors of other areas. Decision of the committee shall be implemented by ONGC and Oil India and the progress of implementation reported to the committee through DGH at its next meeting, the Director General of DGH said in the order. With such close supervision, the oil ministry hopes to make ONGC and Oil India more efficient and accountable, resulting in bettering falling crude output. Oil Minister Dharmendra Pradhan recently told that the fields nominated to ONGC and Oil India didn’t attract much official scrutiny in the past, and his plan now was to closely monitor these fields and make companies more accountable. Fields were given to state firms without auction or production sharing contracts before the sector opened to private investment in 1990s. James Conner Authentic Jersey
Niti Aayog proposes total privatisation of Air India
The government may look at exiting Air India completely, as the Niti Aayog has proposed total privatisation of the national carrier in a report to the Prime Minister’s Office. To stress its point, the Aayog has cited various international examples of governments selling their entire stakes in airlines and not retaining any shareholding to make them viable. These include British Airways, Japan Airlines and Austrian Air. Aviation minister Ashok Gajapathi Raju said the government is examining the suggestions made by the think tank. “Niti Aayog has made suggestions to make Air India a strong and viable airline. All course of action is being examined by us. We have not closed any option,” he told reporters at a conference held here on the third anniversary of the BJP-led government. Raju was responding to a question on a recent statement made by union finance minister Arun Jaitley, who hinted at a divestment in Air India. Jaitley told state-owned TV news channel Doordarshan that the government is exploring all options with regard to Air India, including bringing in a strategic investor. Sources in the aviation ministry said the government expects to make a decision on the future of Air India within three months. Doug Kotar Authentic Jersey
Average airfares fall 18% last year, says Civil Aviation Min
Average airfares dropped 18 percent in 2016 and additional capacities can further bring down the fares, Union Minister Ashok Gajapathi Raju today said as he disfavoured the idea of capping ticket prices. Scheduled airlines carried more than 10 crore domestic passengers in the year ended March 2017, an increase of around 19 percent compared to the same period a year ago. Briefing reporters about the achievements of the ministry during the three years of the NDA regime, he said the aviation ecosystem has been reshaped for affordable and convenient flying. The civil aviation minister said average fares in the country have come down by 18 percent in 2016. “Average airfare fell by 18 percent in 2016 over average airfare in 2015, making air travel affordable for everyone with unprecedented capacity enhancement in aviation system,” as per a document released by the ministry at the press briefing. Corey Coleman Authentic Jersey
No proposal from Qatar Airways for airline in India: Aviation Minister
Union Civil Aviation Minister Ashok Gajapathi Raju says that the Ministry has not received any proposal from Qatar Airways for setting up a domestic airline here. The airlines Chief Executive Officer, Al Baker had announced the intention to set up a 100 per cent owned airline in India at a trade event in Berlin Germany earlier this year. The Qatar Investment Fund is expected to partner with Qatar Airways in the project. Meanwhile the proposal of Qatar Airways for setting up a domestic airline here has been opposed by the Federation of Indian Airlines, a grouping of domestic airlines. Cam Neely Jersey
Should Air India be sold? Aviation Minister says ‘hardly any bakras around’ to buy
Amid speculation that Air India may be privatised, Civil Aviation Minister Ashok Gajapathi Raju said on Wednesday that there were “hardly any bakras (scapegoats) around” to buy the loss-making national carrier unless its massive debt was written off first. Speaking to CNBC-TV18, Raju said all options were on the table with regard to reviving the airline. He said Air India’s finances were bad because of legacy and other issues and turnaround plans have failed to significantly improve its balance sheet. “Business-as-usual is not an option,” said the minister, echoing statements had made the previous day. “Taxpayers’ money cannot be committed for an eternity.” Raju’s comments came amid suggestions from the NITI Aayog, the government’s policy think-tank, that Air India’s debt be written off and a strategic disinvestment should follow. It noted that world over, governments have pulled out of national carriers and India should consider following suit. “I have a fascination for Air India and I am still searching for ideas,” said Raju. “I want it to survive and don’t want it to go the Kingfisher way.” Malik Jackson Jersey
Indian companies can take part in oil and gas projects in Russia’s offshore Arctic
Indian companies can take part in development of oil and gas fields on the Russian Arctic shelf, Russian President Vladimir Putin said in his article “Russia and India: 70 years together” for The Times of India newspaper, published on Tuesday to commemorate 70th anniversary of establishment of diplomatic ties between two countries. “The possibilities for the participation of Indian companies in joint hydrocarbons exploration and production projects in the Russian Arctic shelf are currently under consideration,” the Russian President said. The two countries are successfully pursuing cooperation in the traditional energy resources sphere, he said. In particular, “the purchase of a block of shares in the Russian company “Vankorneft” made by the Indian consortium of companies has become the biggest bilateral deal in the oil industry,” Putin said. “There are also good prospects for cooperation in the solar energy field, modernization of the existing power plants and construction of new ones in the territory of India,” he added. Large-scale projects are carried out in mechanical engineering, chemical and mining industries, aircraft construction, pharmaceutics and medicine, the Russian leader said. “One of the priorities is to boost the trade turnover and improve its structure, as well as stimulate economic activity of our business communities,” Putin said. “I am referring to enhancing industrial cooperation and increasing supplies of high-tech products, creating a better business and investment environment, and using systems of payments in national currencies,” the Russian President noted. “The decision to start negotiations on a free trade area agreement between the Eurasian Economic Union and India adopted in December 2016 is of particular importance,” Putin said. “The possibilities of creating the International North South Transport Corridor are being explored,” he added. All these factors are to “promote the development of our bilateral and regional cooperation,” the Russian President said. Furthermore, “Russia is committed to long-term participation in the “Make in India” program initiated by Prime Minister Narendra Modi,” Putin said. Larry Webster III Authentic Jersey
OVL steps up efforts to recover $400 mil from Sudan in oil dues
ONGC Videsh Limited has stepped up efforts to recover $400 million as dues from Sudan on its investment in oil assets including setting up a pipeline network connecting to the Red Sea, company officials said on Wednesday. In 2003, OVL, the overseas arm of state-owned Oil and Natural Gas Corporation, bought a 25% stake in the Greater Nile Oil Project that managed blocks 1, 2 and 4 in undivided Sudan. China Petroleum Company has a 40% stake in GNOP, Malaysia’s Petronas a 30% share and state-owned Sudapet holds the remaining 5%. These blocks are located in the Muglad basin, about 780 km southwest of Khartoum, the capital of Sudan. The project had started production in 1999 with an initial area of 49,500 sq km in the Muglad basin. But after the creation of South Sudan and Sudan as two separate countries in July 2011, blocks 2A, 2B and 4N came under Sudan, while blocks 1A, 1B and 4S went to South Sudan. At present, the total area of the blocks under GNPO is 29,749 sq km. The Sudanese project produced around 50,000 b/d while the 4N project was in the exploration stage, officials said. OVL’s outstanding dues were related to Sudan’s local refineries using crude from GNOP as against its share. After the division of the African country, the Sudanese government’s share of total crude output in Sudan was not sufficient to meet demands of local refineries and foreign companies such as OVL were asked to sell their share of crude oil to the government. “We have intensified efforts to recover our dues through the diplomatic channel. But it is difficult to predict when the amount will be received,” said a senior OVL official. OVL has 37 projects across 16 countries, including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. Micah Hyde Authentic Jersey
Itochu to buy into Indian LPG terminal
Itochu will help run a liquefied petroleum gas receiving terminal in eastern India, seeing a chance to bolster gas sales in the country as Prime Minister Narendra Modi promotes higher use of the fuel. The Japanese trading house will spend 2.5 billion rupees ($38.6 million) in July to buy a 19.7% stake in Hindustan Aegis LPG, the operator of the facility in the state of West Bengal. In the same month, the Mumbai-based company will begin operating the terminal, which has an annual LPG storage capacity of 2.5 million tons. Hindustan Aegis will receive tank leasing fees from gas importers. In addition to India, Itochu operates LPG import hubs in Japan and the Philippines. It sells 6 million tons of LPG annually to countries such as Japan, South Korea and the Philippines. With help from its Indian business, the trading house targets 10 million tons in annual sales by 2020. India’s LPG demand ranks third worldwide by volume, trailing the U.S. and China. Demand is estimated to grow from about 21 million tons in 2016 to around 25 million tons by 2022, says India’s Petroleum Planning & Analysis Cell. Imports currently meet about half of India’s LPG needs, with demand on the rise from factories and power plants. Jonas Siegenthaler Jersey
OVL steps up efforts to recover $400 mil from Sudan in oil dues
ONGC Videsh Limited has stepped up efforts to recover $400 million as dues from Sudan on its investment in oil assets including setting up a pipeline network connecting to the Red Sea, company officials said on Wednesday. In 2003, OVL, the overseas arm of state-owned Oil and Natural Gas Corporation, bought a 25% stake in the Greater Nile Oil Project that managed blocks 1, 2 and 4 in undivided Sudan. China Petroleum Company has a 40% stake in GNOP, Malaysia’s Petronas a 30% share and state-owned Sudapet holds the remaining 5%. These blocks are located in the Muglad basin, about 780 km southwest of Khartoum, the capital of Sudan. The project had started production in 1999 with an initial area of 49,500 sq km in the Muglad basin. But after the creation of South Sudan and Sudan as two separate countries in July 2011, blocks 2A, 2B and 4N came under Sudan, while blocks 1A, 1B and 4S went to South Sudan. At present, the total area of the blocks under GNPO is 29,749 sq km. The Sudanese project produced around 50,000 b/d while the 4N project was in the exploration stage, officials said. OVL’s outstanding dues were related to Sudan’s local refineries using crude from GNOP as against its share. After the division of the African country, the Sudanese government’s share of total crude output in Sudan was not sufficient to meet demands of local refineries and foreign companies such as OVL were asked to sell their share of crude oil to the government. “We have intensified efforts to recover our dues through the diplomatic channel. But it is difficult to predict when the amount will be received,” said a senior OVL official. OVL has 37 projects across 16 countries, including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand. Andre Hal Authentic Jersey