Startups magic fades at IIT placements as companies face funding issues
Startups are sending shivers down the spines of students at the top Indian Institutes of Technology. Once the most sought-after for placements, some startups have started withdrawing job offers at IITs in Delhi, Mumbai, Roorkee and Guwahati because they’ve either shut shop or are closing some operations. Others are delaying joining dates as uncertainty, a funding slowdown and pressure on profitability force them to go slow on hiring, according to placement managers at these campuses. At IIT Delhi, two startups withdrew job offers after they closed down, while another two made offers but could not keep the commitments, said Anishya Madan, industrial liaison officer, training and placement at the institute. “This is not a good sign. This leads to a lot of uncertainty,” she said. She refused to share the names of the startups that withdrew the offers. Ecommerce companies such as Ola are finding it difficult to take on students they’ve hired and are delaying the process, according to IIT officials. Startups that have withdrawn offers at IITs include Zimply Home Shopping and PepperTap. “While one startup withdrew offers given to six students, a few others are saying they will come up with later joining dates as some businesses they had hired for are not doing well,” said Ayush Lakhotia, placement coordinator at IIT Bombay. “There is a lot of suspicion and concern among students this time when it comes to startups,” he said. Cab aggregator Ola did not immediately respond to an email seeking comment. PepperTap has shut operations. Zimply Home Shopping officials could not be reached. Although several new startups visited the top IIT campuses this year, the number of hires by companies such as Flipkart, Ola and Snapdeal has dropped significantly from a year earlier as investors put pressure on companies to save costs and improve cash flows, the placement officials said. “In January, Zimply Home Shopping said they are ceasing operations in certain cities and cost-cutting. They had taken five students from IIT Guwahati but withdrew all five offers,” said Harish Bohara, student coordinator of placements at IIT Guwahati. InMobi and Roadrunnr have delayed joining dates to October and December, respectively. Roadrunnr, a hyperlocal delivery startup, has stated it is expanding, while mobile advertising platform InMobi hasn’t provided any reason, according to Bohara. All students have been allowed to sit for placements again and most of them have been selected elsewhere, he said. At IIT Roorkee, three startups changed offers made to students. One cancelled the offer in the first week of February and the other two delayed the hiring of 10 students. “Normal date of joining is in July. They have so far delayed it till November. Students are pretty tense. There is a slowdown in startup market and established startups are going down. Students are now looking for backup,” said Himanshu Bansal, placement coordinator at IIT Roorkee. “We have not seen this in our campus so far, but I’m hearing about it from other IITs,” said Babu Vishwanath, professor of mechanical engineering at IIT Madras. Placements at IIT Madras were delayed due to floods in December. Top ecommerce firms including Flipkart, Ola and Snapdeal backed out after registering to visit. Institutes and students are reaching out to executive search firms for assistance. “We are getting calls from tier I and II institutes as many students have had offers withdrawn,” said Kris Lakshmikanth, CEO of The Head Hunters. “Most joining dates are in June. That is the time this will explode,” said recruitment agency officials. Ben Bishop Jersey
FDI in food: Government may permit foreign companies to import ingredients
The government is expected to permit foreign companies to import certain key ingredients like flavours and preservatives under the proposal to allow 100 per cent FDI in the food processing sector. The Centre may also permit players to retail their products online, sources said. They said since some key ingredients of a food product may not be available in the country, the government may permit companies which want to set up units in India to import those inputs. The Department of Industrial Policy and Promotion (DIPP) has proposed to allow 100 per cent foreign direct investment (FDI) through government approval route in marketing and selling of food products produced and manufactured in India. The DIPP, under the Commerce and Industry Ministry, deals with FDI related matters. However, another source said the Food Processing Ministry is insisting on making it mandatory for the foreign players to invest a minimum of about 25 per cent of their total investments in rural ares to create infrastructure like cold chains to benefit farmers. The government has said FDI in food processing will help farmers, reduce wastage of fruits and vegetables, give impetus to the industry and create vast employment opportunities. During April-December, FDI into the country grew by 40 per cent to $29.44 billion. Stephen Hauschka Jersey
Over 100 pilots turned up drunk for their flights!
Pilots can’t stop hitting the bottle before entering the cockpit and the most frequent offenders in recent years are from Jet Airways and IndiGo, two airlines that dominate the country’s aviation market. As per the data available with the DGCA, 112 pilots tested positive for alcohol prior to the commencement of their flights from January 2013 till April 28, Minister of State for Civil Aviation Mahesh Sharma said in a written reply in the Lok Sabha recently. Of these, a maximum number of 33 pilots were from full service carrier Jet Airways, while 25 belonged to budget airline IndiGo, he said. Nineteen pilots of national carrier Air India were found positive in the breath analyser test during this period, he added. A total of 30 pilots tested positive for alcohol during the pre-flight medical test in 2013. The number came down to 26 in 2014, he said. In 2015, 43 pilots tested positive for alcohol. Till April this year, the number stood at 13, he said. The DGCA rules mandate that pilots and cabin crew of all scheduled flights must be subjected to pre-flight breath-analyser examination. “For all scheduled flights originating from destinations outside India, post-flight breath-analyser examination of each flight crew and cabin crew shall be carried out on reaching in India,” the rules add. In case of a violation, a pilot’s licence will be suspended for three months for a first time offence. For a second violation, the pilot’s licence is suspended for three years. A third time offence leads to a cancellation of the pilot’s licence. “I am at loss for words,” an aviation expert said, requesting anonymity. “This is completely unacceptable behaviour and needs to be eliminated ruthlessly. No normal office goer goes to work drunk, stating physical, mental or emotional fatigue,” he said. “Here, we are talking about someone who is responsible for human lives both in the aircraft and on the ground. A tiny error of judgement can cause irreparable damage,” he added. Airlines respond IndiGo, India’s largest airline by market share, explained that the company undertakes an alcohol dependency check after a pilot is suspended and, so far, has not found a single case of alcohol dependency. A spokesperson for Jet Airways said the airline is compliant with Indian regulations on pre-flight screening of all pilots and cabin crew. “On the basis of this and as per internal airline policy, crew members if found BA+ (breath analyser positive) face a 3-month suspension without pay and benefits. A second offence results in termination of services,” the spokesperson said. “The rigorous nature of the screening process for crew members before a flight, and the punitive action taken against those who do not comply with such safety standards, is in itself a deterrent,” the spokesperson added. By 2020, India is likely to become the world’s third largest aviation market after the US and China, with the country’s airports expected to carry as many as 369 million passengers compared to 190 million currently. The regulator is of the view that alcohol present in the body “even in small quantities” jeopardises flight safety on several counts and is likely to adversely affect an aviator well into the hangover period. Ryan Callahan Womens Jersey
Proposed Greater Noida airport-another ghost airport in the making?
Will the proposed international airport in Jewar, Greater Noida be another ghost airport in the making? Built at a cost of Rs 1400 crore the Chandigarh International Airport, which is 250km from Delhi’s Indira Gandhi International airport has failed to start international operations. Will Jewar, which is hardly 84km from Delhi, meet the same fate? The Uttar Pradesh government recently sought approval from the central government for an international airport in Greater Noida. Greater Noida is represented by minister of state for civil aviation Mahesh Sharma in Parliament. “Delhi’s Indira Gandhi International airport is capable enough to handle the rising growth of air traffic. As of now the total Terminal passenger capacity at IGI Airport is 62 million passenger per annum against the actual traffic of approx. 41 million passengers handled in the FY 2014-15,” said an official. “As per the master plan IGI Airport is expected to handle 109 million passengers in the year 2034. This would be adequate to meet the likely traffic demands over the next 18-20 years,” he said. Huge investment has already been made for expansion of the passenger handling capacity and modernisation at IGI Airport. “Now, a new airport within 84 km radius is sheer wastage of public money,” he said. India has spent more than $50 million since 2009 on eight airports that do not receive scheduled flights – white elephants that are a reminder of the pitfalls for Prime Minister Narendra Modi as he bets on an infrastructure drive to fuel growth. Two-and-a-half years after the completion of a new $17 million terminal building, the Jaisalmer airport has no flight operations. Opened with much fanfare as the city’s link to the world, the Chandigarh International Airport, around 250km from Delhi airport, which was inaugurated by Prime Minister in September, could not attract the airlines to start international operations as yet. The Airport is now under the scanner of the Punjab and Haryana High Court, with the Rs 1,400 crore ($210 million) facility failing to deliver. There are international examples of failed airports too. Mirabel Airport in Canada was built at a huge cost for Montreal Olympics 1975. Canadian Government was sparing no efforts to make this airport – a show piece for the entire world. But its location – 55 km from Montreal down town and unpopularity with Airlines- which had already established base at Dorval, the existing airport – killed the Mirable airport. Finally, the airport was closed in 2004 after phenomenal losses and today it is functioning as a cargo airport, with some GA Services. The proposal for an airport in Jewar was first mooted in 2001 by home minister Rajnath Singh, then chief minister of Uttar Pradesh. His successor Mayawati also backed the plan and acquired more than 2,000 acres for the proposed airport. Chris Carson Jersey
India to be the third largest aviation market by 2020
With 81 million trips, India’s domestic aviation market grew at over 20.3% during Jan-Dec 2015 – the highest growth rate recorded in the world. India is well on its way to become the third largest aviation market by 2020 says the FICCI-KPMG ‘India Aviation Report 2016’. The report suggests that aspects such as increasing disposable incomes, fall in prices of Aircraft Turbine Fuel (ATF), increase in tourism, visa reforms, etc. have placed India in a unique position. This is bringing the country closer to achieving its vision of becoming the largest aviation market by 2030. The civil aviation sector is hugely susceptible to oil price volatility, economic cycles, natural disasters, epidemics and political upheavals. According to the report, the Indian civil aviation industry has exhibited tremendous resilience to the global economic slowdown and ranks ninth in the global civil aviation market. This is attributed largely to the growing economy, increased competition among airlines, especially among low cost carriers, modern airports, greater use of technology, Foreign Direct Investment (FDI) and increased emphasis on regional connectivity. The report highlights that the National Civil Aviation Policy (NCAP 2016) is likely to provide a significant fillip to the industry. The various fiscal and monetary incentives, liberal policies focused on ‘ease of doing business’ and enhanced push for regional and global connectivity are extremely positive. Steps taken to revive and operationalise around 160 airports in India, if chosen carefully, will improve air connectivity to regional and remote areas. Public-Private Partnerships (PPP) in the sector will get substantial support from the state in terms of financing, concessional land allotment, tax holidays and other incentives. According to Harshavardhan Neotia, President, FICCI, “Enormous growth in domestic passenger traffic, substantial strengthening through Government initiatives, decrease in global crude oil prices and airlines showing profits indicates a significantly positive transformation for the Indian civil aviation market. The close partnership between the government and the industry in ongoing and future projects will further improve regional connectivity. I am certain that the sector will take complete advantage of the positive momentum and help sustain the growth.” Amber Dubey, Partner and India Head of Aerospace and Defence, KPMG said, “The positive impact of NCAP 2016, rise in disposable incomes and the fall in ATF prices are likely to help India leapfrog into the top three of the world. One hopes that the government can match domestic ATF prices with global levels for a three year experimental period. MRO is likely to see a huge revival if the service tax is zero-rated. Growth of aviation and tourism can create a huge multiplier in terms of GDP growth and jobs.” The report sheds light on the astounding growth of 17.1% in the total passenger throughput for FY 2015-16 till January 2016 standing at 184 million. Passenger throughput is expected to reach around 370 million by 2020. According to International Air Transport Association (IATA), passenger traffic on international routes showed an increase of 6.5% in 2015 compared to 2014. In comparison, during Apr-Dec 2015, international passenger throughput at Indian airports grew at 7.7%. Middle East continues to lead in the growth of revenue passenger kilometre (RPKM) followed by Asia-Pacific, Latin America and Europe. North America and Africa showed sluggish growth. By 2034, it is expected that Asia-Pacific will be the biggest market for global aviation. The report strongly suggests that in order to ensure high-geared growth, it is imperative to broaden the base of domestic flyers through greater air connectivity in Tier 2/3 cities. Many Indian states have taken positive initiatives, largely in the field of development of airports, reduction in sales tax rates on ATF and direct subsidy to airlines for improvement of connectivity. The government and industry are engaged closely in addressing the various opportunities and challenges in the aviation sector; and that’s a welcome sign. The collaboration needs to be strengthened and institutionalized. With positive macro-economic factors, low ATF prices and industry-friendly government policies, India is well placed to achieve its vision of becoming the third largest aviation market by 2020 and the largest by 2030. Dale Murphy Womens Jersey
Not fully giving lower fuel cost benefits to customers: IndiGo
Amid rising concerns over higher airfares despite fall in oil prices, no-frills airline IndiGo has acknowledged that it is not “passing on all” the benefits accruing from lower fuel costs to the customers. The steep fall in international crude oil prices in recent times has provided a boost for airlines as ATF (Aviation Turbine Fuel) costs account for over 40 per cent of a carrier’s total operating costs. IndiGo President and Whole Time Director Aditya Ghosh said the airline continues to use the low cost fuel opportunity to lower fares and register strong increases in passenger numbers. However, the full benefits of fall in fuel prices are not passed on to the customers, he said. “If you look at fourth quarter (January-March 2015-16), then fuel prices came down 29.5 per cent whereas the average fares came down I think above 15.2 per cent. “So clearly, we are not passing on all of its back to the customers, but of course the lower fuel prices and the lower average fares also has a positive effect on our load factors,” he said during the conference call after financial results last week. Further, Ghosh said: “We are not driving down fares, there is some amount of competitive pressure from other operators as well”. While the airline is are benefiting on the higher load factors, he said, “we think we will kind of stay with how the market moves” as per the transcript of the conference call posted on IndiGo’s website. Concerns have been expressed in various quarters, including by Parliamentarians that airlines are not passing on benefits from lower ATF costs to the passengers. Hit by higher expenses, IndiGo’s parent InterGlobe Aviation today saw its net profit remain flat at Rs 579.31 crore in the three months to March. Notwithstanding nearly 15 per cent fall in fuel costs to Rs 1,023.61, IndiGo witnessed its total expenses in the March quarter jump nearly 12 per cent to Rs 3,409.86 crore. Aviation regulator DGCA has meanwhile asked carriers to provide details on the number of tickets sold in the highest fare bracket and share of revenue earned from this on 20 identified routes. On May 3, Civil Aviation Minister Ashok Gajapathi Raju told the Lok Sabha that his ministry would hold consultations with airlines to explore the possibility of curbing the menace of charging exorbitant airfares during emergency situations. His assurance came after Lok Sabha members voiced concerns over exorbitant airfares during emergency situations like unprecedented floods in Chennai and Srinagar and the recent Jat agitation. Ben McLemore Womens Jersey
DGCA seeks info on ticket pricing from airlines
With concern being expressed over steep fluctuation in airfares, civil aviation regulator DGCA has sought details from the airlines on their pricing ways, especially the highest fare bucket. The latest move comes against the backdrop of concern expressed in various quarters, including by the MPs, about steep fluctuation in airfares, mainly during emergency situations and peak seasons. The regulator has sought details of ticket prices from the airlines, especially those sold in the highest fare bucket, a DGCA official said today. As it seeks to clamp down on airlines charging exorbitant ticket prices, the Directorate General of Civil Aviation (DGCA) has also asked them to submit specific information about the number of seats and relevant fares on 20 identified routes, the official said. The routes, for which ticket pricing information has been sought, include those connecting Jammu and Kashmir, Leh and Port Blair. On Wednesday, Civil Aviation Minister Ashok Gajapathi Raju had told Lok Sabha that the ministry would hold consultations with the airlines to explore the possibility of curbing charging of exorbitant airfares during emergency situations. “The ministry will commence the process of consultations with stakeholders, including airlines, to explore possibility of containing fares,” he had said. His assurance had come amid Lok Sabha members voicing concern over exorbitant airfares during emergency situations like unprecedented floods in Chennai and Srinagar and the recent Jat agitation. Allan Houston Jersey
Aviation minister Ashok Gajapathi Raju bats for solar units at all airports
Civil Aviation Minister Ashok Gajapathi Raju today said he has asked all the airports in the country to install solar energy units on the lines of Kochi airport. He was talking to reporters after showing installation of 5 KV solar energy panels at his residence here with an estimated cost of Rs 5 lakh. Talking about the expense, the Minister said state government had given Rs 2 lakh as a subsidy for installation. A 12 MW-capacity solar power unit has been installed at Kochi airport run by the Cochin International Airport Limited. Similarly, solar unit has also been installed at the Delhi airport, he said, adding that he had asked other airports in the country to emulate this step. The Minister also batted for grant of special status to Andhra Pradesh, saying the delay in granting it may cause more financial distress to the state. Brandon Mebane Authentic Jersey
Chinese team starts hydrocarbon exploration in Nepal’s western district
A team of Chinese experts on Sunday launched a study on prospects for minerals, gas and oil at Shreesthan in Dailekh, a western district of Nepal, which, officials claim, holds petroleum products in abundance. It is after a gap of two decades that the Nepal government has allowed Chinese geologists to begin hydrocarbon exploration in the western part of the country in a bid to become self-reliant. Six Chinese experts are involved in the exploration bid, according to a government statement issued here. The Chinese team will carry out the feasibility study on all 10 petroleum blocks in Nepal sprawled from east to west. The Chinese team will report its findings in about a month on the exploration prospects apart from the amount of petroleum products that could be harnessed in the district. The study comes in the wake of an agreement between Nepal and China during Prime Minister K.P. Sharma Oli’s visit to the communist country in March, said Minister for Industry Som Prasad Pandey, who kick-started the exploration venture. Under the agreement, China was also to help in the construction of at least three petroleum reservoirs in Nepal. China will also extend technical and financial help to Nepal in exploration. Nepal began exploring for hydrocarbons some three decade ago and awarded several contracts to international firms. But the attempts were not a success due to lack of political will and adequate budget. Rasheem Green Authentic Jersey
Refined petroleum imports more beneficial than crude
Bangladesh will benefit more if it imports refined petroleum products instead of bringing in crude oil and refining them at home, BMI Research said in a new report. The country imports crude oil from Saudi Arabia and the UAE, which is refined at Eastern Refinery Ltd (ERL), a wholly-owned subsidiary of state-owned Bangladesh Petroleum Corporation. Recently, ERL has contracted Engineers India Ltd as a consultant to expand the country’s lone Patenga refinery. The facility currently has a refining capacity of 1.5 million tons a year. The government is seeking developers to construct a second crude distillation unit at the refinery, which will increase the refining capacity by an additional three million tons a year by 2019, at an estimated cost of $1.7 billion. “Given the geographical proximity of the Middle East and the competitiveness of its refineries, it may be more economical for Bangladesh to import refined fuels from the Middle East in the short term,” said London-based BMI Research. At present, Bangladesh imports refined fuels from countries such as Malaysia, China, Vietnam, the Philippines, Indonesia and Brunei, Turkey, Kuwait, the UAE and Oman. “Additionally, we forecast Bangladesh will remain a net importer even if the refinery expansion project goes ahead, restricting the potential of international sales revenue that ERL and BPC could generate.” Owned by Fitch Group, BMI Research provides macroeconomic, industry and financial market insights. The analysis forecasts Bangladesh’s refined fuel consumption will grow at an average of 3 percent a year to 2025, led by an expanding manufacturing sector and strong economic growth. BMI Research cautioned that there are significant downside risks to the expansion project, such as a delay or project downsizing, given that the government has yet to secure financing. The government has teamed up with France-based Technip in order to treble the country’s capacity for refining crude oil, thus cutting the reliance on imports. Under the deal, Technip, which also established the existing sole unit of ERL in Chittagong 47 years ago, will set up the second unit. Once completed, the second unit will help the country save $220 million, said BPC Chairman AM Badrudduja earlier. Domestic refining can help save a country up to $5 a barrel, according to experts. At present, the country’s annual demand for crude and finished oil is 5.5 million tons. Of them, 64 percent is diesel, 17 percent furnace oil and 5 percent kerosene. The rest are octane, petrol and other products. Of the fuel imports, 46 percent is used in the transport sector, 26 percent in power sector and 17 percent in agriculture. Mohammad Tamim, a professor of petroleum and mineral resources engineering department at the Bangladesh University of Engineering and Technology, said the second unit should be designed in a way that it can process crudes to give out the maximum quantity of diesel. The current refinery can produce up to 30 percent diesel, while the available technology can produce up to 45 percent diesel from crude. ERL processes Arabian light crude and Murban crude, imported respectively from Saudi Arabia and the UAE, and produces 16 petroleum products. But the refinery cannot process Russian crude, for example. BPC has made a profit twice in the last 15 years, mainly because it subsidises fuels to end consumers. In fiscal 2014-15, BPC made a profit of $443.1 million. However, the profit will be short-lived, as the BMI Research analysis forecasts fuel prices to strengthen in the coming years, increasing the subsidy burden. Dale Hawerchuk Womens Jersey