SPV meeting next week to plan projects in Pune
he first meeting of the Special Purpose Vehicle (SPV) that will implement infrastructure projects under the Smart Cities Mission will take place next week. The Centre will release the first instalment of the funds soon, municipal commissioner Kunal Kumar has said. “All legal procedures, including registration of the company, have been completed and the implementation of the project plan will be done without delay,” Kumar told reporters on Thursday. The state government approved the formation of the SPV last month and appointed the municipal commissioner as the head of its committee, despite opposition from political parties. Kumar said, “The first meeting of the SPV will be called next week. Initially, there was an impression that the Smart Cities Mission will focus on one part of the city. But the entire city is going to benefit from the mission. Pune Municipal Corporation is all set to implement the projects.” While the civic chief is gearing up to launch the smart city project, mayor Prashant Jagtap has submitted a memorandum to Union urban development minister Venkaiah Naidu seeking more rights for elected representatives on the board of the SPV. “Elected members and the mayor are members of the SPV. But they have a limited role and authority compared to other non-elected members. The minister has said that he would consider the demand,” Jagtap said. The Union urban development ministry has said that each smart city in the country will have an SPV headed by a full-time CEO. It will have nominees of the Union and state governments and the municipal corporation on board. The SPV will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate development projects under the plan. The state and the municipal corporation will have to ensure that a dedicated and substantial revenue stream is made available to the SPV so as to make it self-sustainable. The company can evolve its own credit-worthiness to raise additional resources from the market.
Smart City Mission likely to revive green projects in Jaipur
The Walled City’s proposed eco-friendly and heritage conservation projects which have been lying dumped for the past several years are expected to get a fresh boost under the Smart City Mission. At the first meeting of the board of directors of Jaipur Smart Mission Limited (JSML), it was decided to initiate the work on ‘public bicycle sharing (PBS) project before June 15. Besides, renovation of facade (heritage wall) would also begin soon. These projects are need of the hour. The heritage wall needs an urgent repair. The Jaipur Municipal Corporation (JMC) was not able to do this work due to shortage of funds. Similarly, the public bicycle sharing project is needed as it would reduce pollution and decongest the Walled City area. Mayor Nirmal Nahata said, “The projects for which detailed project reports (DPRs) have already been prepared will be considered and first-phase work will begin soon. The facade work will also be taken up.” A senior JDA official said that after the Walled City became the busiest and congested area due to swelling population, the JDA, with assistance from the Central government, had proposed to launch the public bicycle sharing project. The project looked feasible as it was cost-effective and could have become an added attraction for the tourists. The detailed project report (DPR) was also prepared, but nothing happened thereafter. A JDA engineer said, “The decision to reconsider the PBS project is a good idea. Pedestrians and cyclists are an ignored lot in the Walled City. Considering this fact, we had drafted a detail project report of the scheme during the previous government. The project was stalled after the change in regime.” Similarly, the heritage wall will get a new life if the Jaipur Smart Mission Limited takes up the project this year. For the past so many years, the restoration work was ignored due to fund crunch. An official said that a report prepared by the Indian National Trust for Art and Cultural Heritage (INTACH) for restoration of the wall was submitted to the court in July 2014. Today, only 25% of the original wall exists and there is extensive damage to that also. At some places, the wall has made way for newer passages, while at other places it has become the leaning pillar for construction of shops and residences.
PPP needed as funding for Smart City, AMRUT inadequate: Venkaiah Naidu
The government has decided to bring in the PPP model for the implementation of the Smart City and AMRUT schemes as funds allocated for these are inadequate, Union minister M Venkaiah Naidu said today. “Presently, the funds we are providing under the Smart City and AMRUT schemes are not adequate. I know it. The figures (of allocation) are very big but they are not adequate from the point of implementation,” he said. “The investment potential in the urban sector in the next 5-6 years is Rs 18 lakh crore, including Rs 1 lakh crore under AMRUT, Rs 2.50 lakh crore under Smart City Mission and Rs 66,000 crore under Swachh Bharat Mission. “These figures are good-looking but not adequate; I know it. That’s why we have decided to bring in the PPP model,” the Urban Development Minister said at a meeting of the All India Council of Mayors here. Naidu told mayors from across the country that the Centre would provide Rs 87,147 crore directly to urban local bodies between 2016 and 2020. As regards concerns and complaints of mayors that the 74th Amendment Act pertaining to urban local bodies has not been fully implemented by many states, Naidu said it was a “serious matter” and he was looking into it. “There needs to be a consensus over implementation of the 74th Amendment Act. States are always asking for more powers; but at the same time they have to devolve more powers to local bodies and that is not happening,” he said. The government will incentivise the states that implement the Act, he said while noting that “public pressure” could push the unwilling to fall in line. Naidu said he was in favour of a separate municipal cadre for urban civic bodies, maintaining that even the Prime Minister had seen the proposal and UPSC had been directed to study it. Earlier, after the meet began with the singing of ‘Vande Mataram’, chants of ‘Bharat Mata Ki Jai’ were raised by some of the mayors affiliated to BJP. Naidu later told reporters that the chanting of Bharat Mata Ki Jai was not a matter of “dispute”. He accused opposition parties of “maligning” the government and engaging in politics over the chant and said it had also been uttered by the likes of Bhagat Singh, Sukhdev and Rajguru. Referring to comments by Delhi Chief Minister Arvind Kejriwal over a Pakistani team’s visit to probe the Pathankot attack, Naidu said the AAP leader should seek “pardon” from the country for levelling allegations against Prime Minister Narendra Modi.
End of road likely for private two-wheelers in delivery business
E-commerce companies and quick-service restaurants may soon have to put the brakes on last-mile deliveries through private two-wheelers with the government working on rules to regulate their use for commercial purposes. Currently, most e-tailers and restaurants outsource deliveries to two-wheeler riders as it both speeds up the process and is cost-effective. In many cases, the delivery person owns the bike and gets paid a commission upon completion of the job. This is all set to change with the government planning a new categorisation called ‘two wheeler goods vehicles’. These will be fitted with a box for carrying goods, according to a draft notification issued by the Union road transport ministry. “Any motor vehicle used for commercial purposes should be treated as such regardless of the number of wheels. We are witnessing rampant misuse of the law by several firms that use private two-wheelers for commercial purposes. We are writing to the government as we need rules,” said SP Singh, senior fellow and co-coordinator of Indian Foundation for Transport Research and Training, an independent body. While there are a few rules for private vehicles, if classified as commercial, a different set of rules would kick in. Some of these include differentiated insurance tariffs, road taxes, mandatory periodical fitness certificates, driver badges, police verification. All this will push up cost of deliveries. TOI tried to contact firms like Flipkart, Amazon, Snapdeal, and Swiggy but emails and calls went unanswered. The Union road transport ministry issued the draft rules on two-wheeler goods vehicles last November but the final notification is yet to come. “We are processing the suggestions and objections that we have received to the draft notification. The final notification will be out soon,” said a transport ministry official. The proposed norm specifies that the two-wheeler go- ods vehicles will have to be 550mm long and 510mm wide, while each box could carry a maximum weight of 30kg. This will prevent overloading, a common problem. Insurers too are waiting for regulations. “We insure two-wheelers knowing fully well that they are used for pizza delivery. The Insurance Regulatory and Development Authority does not have any separate classification for commercial two wheelers,” an insurer said. Once the rules get notified, it will be left to the states to implement them. For instance, states like Karnataka oppose two-wheeler taxis while Haryana and Goa have allowed them.
Dist Consumer forum slaps Rs 17k fine on eBay
District Consumer Dispute Redressal Forum, Bhopal, slaps Rs 16,900 fine on online shopping company eBay, for delivering the defected mobile phone to a city residents Praveen Tikekar, 54 years. Other two named in the list are Fortune infovision private limited from Jaipur and Satyam Mobile and computers, from Bhopal. Consumer Praveen Tikekar had bought the mobile phone WIIO, model number W15, manufactured by Jaipur company, through online shopping site eBay on October 31, 2014 after paying the cost of Rs 9900. He received the phone on November 10, next month. As soon as he started his mobile there was a problem of network and mobile hung up several times. He tried to use the mobile phone for few days by switching it on and off, but when he started facing more problems he discussed the problem with the manufacturing company, but no satisfactory action was taken. When Praveen decided to go consumer forum and told both the companies eBay and manufacturing company from Jaipur, they changed the mobile. But again the same problem started. He gave his mobile at service centre on February 18, 2015, which was received after repairing on February 21, but again there was the same problem repeated. On April 22, the consumer requested the shopping portal to change the mobile via email, but there was no response from the companies and ultimately the case was filed in district consumer forum. Despite several reminders for hearing and notices when none of the companies felt the importance of appearing in the court, they were slapped with the fine. The company has been asked to pay Rs 9,900, the cost of mobile, Rs 5000 as mental harrasment and monetary loss and Rs 2000 for legal aid as compensation to Praveen Tikekar, within timeperiod of two months. The order was given by bench including members Sunil Shrivastava and Monika Malik
Spicejet-Kalanithi Maran stock warrant issue: HC seeks BSE, Sebi reply
Delhi High Court Thursday asked the Bombay Stock Exchange and Securities and Exchange Board of India on what decision they have taken with regard to the application of Spicejet and Kalanithi Maran for issuance of stock warrants in the airline to him. Justice Manmohan Singh issued notice to BSE and Sebi asking them to inform him on April 26 “outcome of decision, if taken, in view of order passed on March 14” by the court. The order was passed after the lawyers for Spicejet and Maran told the court that so far no decision has been taken by BSE and Sebi and the time of two weeks given by the judge has already expired. The court on March 14 had asked BSE to decide the application for issuance of stock warrants within two weeks of filing of the requisite paperwork by the airline. The March 14 interim order was issued on a plea of Sun group head Kalanithi Maran claiming that he and his KAL Airways were to be issued stock warrants in Spicejet by the airline under a 2015 sale purchase agreement (SPA) which led to change in ownership of the budget carrier.
CBI Inspection at Airport, AISATS Office
The CBI Kochi unit on Wednesday conducted further inspections at the domestic airport of Trivandrum International Airport (TIA) and at the office of Air India SATS (AISATS) in the city. AISATS is a joint venture between Air India Limited and SATS Limited, a leading ground handling agency. The raid was carried out following complaints against AISATS over the payment of ground handling royalty charges to the Airport Authority of India (AAI). In the complaints, it was said that AISATS had deliberately reduced the per cent of royalty payment which it is bound to give the AAI. Agencies like AISATS are required to pay a certain percentage of their monthly gross turnover (GTO) as royalty charges to AAI. The raid, which began in the early hours of Wednesday, ended in the evening and the CBI officials are learnt to have confiscated several records from the offices. The sleuths had directed all airlines dealing with AISATS to produce the documents of payments made to the ground handling agency over the last few years. According to the CBI officials, this was a follow-up inspection made by the sleuths after a major raid carried out three months ago. Earlier, the CBI had also found misappropriation to the tune of crores.
Disclose assets by April 21, SC tells Mallya
The Supreme Court on Thursday directed beleaguered liquor baron Vijay Mallya to disclose to it all his assets—movable and immovable and tangible and intangible—and other interests in India and abroad by April 21. An apex court Bench comprising Justice Kurien Joseph and Justice Rohinton Fali Nariman asked Mallya to disclose all the assets held by his wife and children and also indicate the date when he could appear before it in person. The order came after a consortium of 23 nationalised banks and financial institutions today rejected in the Supreme Court Mallya’s offer to repay the Rs 9,000 crore loans in a staggered manner.
Funding of exports to Iran from India through the Export Development Fund of Exim Bank
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for increasing the framework agreement between Exim Bank of India and a consortium of Iranian banks lead by Central Bank of Iran for financing the purchase of goods and services from India to Rs.3000 crore from Rs. 900 crore. This will be done by utilising the Export Development Fund (EDF). The proposal provides for domiciling two contracts of export of steel rails by STC and for the Chabahar Port Development project previously approved by the Cabinet under EDF. The proposal will promote the country’s exports with Iran. It will also deepen India’s relationship with Iran as a strategic partner. Background The Exim Bank of India and seven Iranian Banks led by Central Bank of Iran had negotiated a framework agreement in November, 2014 for financing the purchase of goods and services from India by Iranian entities to the tune of Rs.900 crore under EDF. The increase to Rs. 3000 crore will enable the Exim bank to provide Buyer’s credit facility to Iran, secured via sovereign guarantee from Iran, for the export of goods and services. This will provide opportunity to Indian Companies to penetrate and enhance their footprint in Iran along with facilitating the growing trade and investment with Iran. This will also help in employment generation and development of ancillary activities in India.
Minister of State for Petroleum and Natural Gas Sh Dharmendra Pradhan to visit Iran and UAE
Shri Dharmendra Pradhan, Minister of State (I/C) for Petroleum and Natural Gas, will be visiting Iran and UAE on 9-12 April 2016. During his visit to Iran from 9-10 April, Sh. Pradhan will meet Iranian Minister of Petroleum, Senior Adviser to President of Iran on Free Trade Zones and Governor of Central Bank of Iran in Tehran. He would also be addressing the Tehran Chamber of Commerce. He will be visiting Chabahar FTZ to interact with FTZ authorities. The last visit by an Indian Minister of Petroleum and Natural Gas to Iran was in April 2007. India and Iran share historic bilateral relations with substantial economic engagements, covering many sectors. The trade relations have traditionally been buoyed by Indian import of Iranian crude oil. The bilateral trade during the fiscal year 2014-15 was US $ 13.13 billion. India imported US $ 8.95 billion worth of goods, mainly crude oil and exported commodities worth US $ 4.17 billion. The visit of Sh Pradhan envisages engaging with the Iranian political leadership to work with them, particularly in the hydrocarbon, petrochemicals and fertilisers sectors for mutual benefits, including strengthening of India’s energy security. During the visit to UAE from 11-12 April, Sh Pradhan will meet HE Suhail Mohammed Al Mazrouei, Minister of Energy of UAE in Abu Dhabi. He will also meet with CEO of ADNOC and Chairman of AIDA (Abu Dhabi Investment Authority). During his stay in Dubai, Sh Pradhan will meet Emirati Businessmen, inaugurate India Pavilion at the Annual Investment Meet-2016 at the World Trade Centre, visit Jabel Ali Free Zone Authority (JAFZA) and interact with JAFZA authorities. He is also scheduled to meet Indian businessmen and professionals. The visit of Sh Pradhan to UAE is a follow up of the February 2016 visit of Crown Prince of Abu Dhabi HH Sheikh Mohammed Bin Zayed Al Nahyan and Minister of Energy H E Mr Al Mazrouei. In the recent years, the traditionally close and friendly India – UAE bilateral relationship has evolved into a significant partnership in the economic and commercial sphere. India-UAE trade, which was valued at US $ 180 million per annum in the 1970s, is today around US $ 60 billion making UAE, India’s third largest trading partner for the year 2014-15. For UAE, India is the largest trading partner for the year 2014, with an amount of over US$ 28 billion (non-oil trade). On the energy front, UAE contributes significantly to India’s energy security, being the 6th largest supplier. India is the 2nd largest destination for UAE’s oil exports. India imported 16.11 MMT of crude oil from UAE during 2014-15 and 11.52 MMT during April-December 2015. Mr Pradhan will be accompanied by senior officials from his Ministry and also from Departments of Petrochemicals, Fertilizers and Economic Affairs, apart from CMDs/MDs and officials from Central Public Sector Oil and Gas, Fertilizers, Shipping and Metal companies. Representatives of private Indian companies involved in petroleum, petrochemicals and fertilizers sectors will also be travelling along with Sh Pradhan as part of a FICCI delegation.