Telangana to set up two electronic clusters in Hyderabad, eying $7.5billion business
Telangana, which on Monday unveiled Information Technology policy with various incentives pertaining to land and power, and reimbursement of stamp duty and registration fee among others, is eying $7.5 billion of production of electronics by 2020 from $1 billion now. Towards achieving this ambitious target, Telangana proposes to invest heavily on IT parks and infrastructure for the ICT companies in the cities and rural areas, including two large electronics manufacturing clusters in nearly 1,000 acres on the Hyderabad outskirts. Aimed at promoting the use of information technology across verticals, India’s newest state also unveiled sectoral policies focussed on innovation, electronics, gaming and animation and rural technology. Infosys founder NR Narayana Murthy unveiled Telangana’s Information and Communications Technology (ICT) policy, while other sectoral policies were launched by Manipal Global Education’s chairman Mohandas Pai and Niti Ayog’s member VK Saraswat. Telangana’s IT minister KT Rama Rao said, “We have the potential to grow in sectors like gaming and animation, cyber security etc., and with such dedicated policies, it will give an impetus to the sectors as also boost our IT production.” Telangana government hopes to attract investments worth $3 billion in the Electronic System Design and Manufacturing (ESDM) sector by 2020. The ICT policy gives thrust on acquiring large tracts of land for IT/ITeS SEZs and the government plans to rope in global agencies like World Bank, World Economic Forum for setting up incubators focused on rural and social enterprises. The government has also inked 28 deals with several partners to promote skill training in the state. The entities that entered into agreements with Telangana include Development Bank of Singapore, University of Cambridge, TiE, Cisco, Microsoft India, CDAC, YES Bank, Nasscom, Value Labs, Fractal Analytics, LED Manufacturers, Max Touch, Kwality Photonics, Axiom, Aries Group, TalentSprint and IMAI among others. Telangana Chief Minister K. Chandrasekhar Rao said, “We have made easier for companies to set up their units here with our Industrial policy. Under the TSiPass policy, we have given clearances to 1,691 companies under the stipulated 15 days of time and 813 of them are now in stage of production.” Under the innovation policy, Telangana plans to develop one million square feet of work space dedicated to start-ups in five years along with expansion of state backed incubator, T-Hub, to house 900 start-ups and have similar facilities in tier-II cities of the state. As a part of the gaming and animation policy, the state government proposes to create dedicated infrastructure in the form of ‘Game City’ over six lakh square feet of space. It proposes to provide facilities for animation and gaming companies, digital film production houses, music and television studios, training academies and entertainment complexes. “Our policy focusses not only on consolidating our strengths but also on making pioneering efforts into new and emerging areas,” said IT minister Rama Rao, who is also the son of chief minister K. Chandrasekhar Rao. “We might have got on the IT bus later than others in the past, but I am confident that we will not only be on the bus in time but also drive it.”
Government to develop 25 regional airports, says FM Arun Jaitley
To improve air connectivity, Union Minister Arun Jaitley today said the government plans to develop 25 regional airports. “This year I have set a target of having 25 more regional airports,” Jaitley said. Speaking at a conference here, the finance minister also emphasised the need for having long-term funding for infrastructure. He said the government is looking to develop 15 airstrips owned by the state governments and 10 that are with the Airports Authority of India (AAI). There are around 160 airstrips that are lying unused, he said while talking about the steps taken by the government for infrastructure development in the country. According to the minister, AAI would be able to fund itself from the money coming from Delhi and Mumbai airports. The international airports in the national capital and Mumbai are run through public private partnerships, where AAI is a stakeholder. Further, Jaitley said the operation and management of some developed airports could be given to private players. The government has been working on ways to bolster aviation sector, especially increasing regional connectivity amid rising number of air passengers. In the draft civil aviation policy, which is in the advanced stages of finalisation, various measures have been mooted for boosting regional air connectivity.
3 runways, 8 radars and a dozen pair of eyes
t the Indira Gandhi International airport, a brigade of air traffic controllers handles 1,100 landings and take-offs every day. In peak time, it manages up to 75 flights an hour. This works out to one flight operation each minute, making the Delhi Air Traffic Control (ATC) station the country’s busiest. “Our aim is to ensure safety of aircraft, maintain regular flow of flights and avoid incidents involving aircraft or passengers,” says a senior Delhi ATC official. “We have state-of-the-art automation system provided by a US-based firm, which gives us the capacity to manage 75 flight movements per hour on the three runways and two terminals at IGI airport.” Air traffic at Mumbai is comparably higher, says an official, but IGI is the only airport in the country that employs three runways simultaneously. The controllers work in five shifts to keep the ATC operational 24×7. Each shift is headed by a Watch Supervisory Officer (WSO), who oversees the functioning of 55 controllers. Over all, Delhi ATC is headed by a general manager, Air Traffic Movement (ATM). “A team of 11-12 officers sits in the tower managing the landings and take-offs at IGI. The Delhi ATC has jurisdiction over 250 nautical miles. This space is divided in four sectors that are manned by four teams with three members in each,” explains an official. “To prevent collisions, ATC enforces traffic separation rules that obligate aircraft to maintain a prescribed minimum unoccupied space around it at all times. Many aircraft also have collision-avoidance systems. These provide additional safety by warning pilots when other aircraft get too close.” The Delhi ATC uses feeds from eight radars. At IGI airport, there is a long-range instrument called the Air Route Surveillance Radar (ARSR) with the capability of coving the entire 250 nautical miles under Delhi’s purview, two short-range radars keeping vigil on 60 nautical miles of territory, and two surface movement radars that manage the ground surveillance of the runways, apron area, taxiways and bays. Apart from these, the ATC gets feed from three other radars stationed at Varanasi, Udaipur and Bhopal for an integrated surveillance of the entire air space under its jurisdiction. “ARSR is 15 years old, while one of the short-range radars was only bought last year. But we ensure regular maintenance of all of them,” says an official. Apart from radars, IGI’s three runways are also capable of handling landings and take-offs from both ends. Of the six approaches to the runways, three are CAT III-enabled and allow flight operations even at visibility as low as 50 metres. Well-equipped and already at an advanced stage and prepared to handle the rising air traffic, one problem most ATCs face is staff shortage. Delhi, however, given its status as the busiest in the country, has been spared this problem. Elsewhere, the long and stress-filled working hours, the necessity of regularly keeping oneself updated with industry developments and low initial salaries keep the youth away from opting for an air traffic controller’s job. Despite these challenges, however, controllers testify that the responsibility that comes with the job is rewarding in itself.
Traders demand revisit of e-commerce FDI policy
Alleging violations of new FDI policy by major online market places, traders body CAIT has demanded that government should fix the loopholes and provide a level-playing field to small retailers. Opposing the policy permitting 100 per cent FDI in online market places, CAIT Secretary General Praveen Khandelwal said the government circular has no clear definition of a group company. “At times the Companies Act definition of Group Co is used. I believe with such definition entities like Cloudtail, which is a JV between Narayana Murthy’s investment Co and Amazon, is not group company of Amazon (this co sells more than 40 per cent of Amazon India sales). “Cloudtail actually is a listed Retailer on Amazon having investment of Amazon and keeps inventory still with some convuluted logic can carry on retail,” he alleged. According to the DIPP Circular, online market places are barred from inventory-based model and sales of a single retailer or a group company cannot exceed 25 per cent of total sales of the e-commerce company. “For all practical purposes, Amazon is controlling its operations and Murthy is only a name lender and still there is no restriction on operation of Cloudtail. Similarly, Flipkart has its own nominee like WS Retail,” he alleged. Khandelwal further said that the DIPP Circular says that there would be no influence on pricing by e-commerce firm. “However, currently the market place companies reimburse the discounts as marketing support. There is no way this route is blocked,” he alleged. “The most important part of the notification is that while DIPP makes rules there is no authority to check whether any violations are taking place. Or there is no forum to which a small Retailer can complain,” he said. Around 10,000 traders across the country have gathered here for a two-day conclave to oppose the FDI policy. Khandelwal said government should provide a level-playing field to small traders who are contributing over 40 per cent of the GDP and providing employment to six crore people. “E-commerce firms are funded through private equity fund or venture capitalist, which are interest free or by plain funds, which has 0.7 to 3 per cent interest rate while the traders get at 12 per cent,” he said. He also said that the policy “has been brought by the government without having any impact assessment and talking to the stakeholders of the sector”. Trade in around 24 segments has been hit by up to 40 per cent from deep discounting by on line firms, he said. “When FDI in e-commerce was not permitted then segments as mobile phones, consumer electronics, gift items, luggage, crockery, toys has been hit by up to 40 per cent and now when 100 per cent FDI is allowed then we would not be able to compete with them,” Khandelwal said. “We are demanding for a rollback of the government’s new policy of e-commerce allowing 100 per cent FDI (in marketplace format),” he added.
Online shopping to be costlier in Himachal
Online shopping is slated to become costlier in Himachal Pradesh as the state government on Monday introduced an amendment bill to impose tax on all kind of transactions that are resulting in tax evasions. Excise and Taxation Minister Prakash Chaudhary tabled the Himachal Pradesh Tax on Entry of Goods into Local Area (Amendment) Bill of 2016 in the assembly, making provisions to tax online business products. With a view to tap the revenue potential of the ever-growing online shopping business, it is proposed that online purchases be brought under the ambit of the act and the person in-charge of such goods shall be liable to pay the tax on behalf of the importer, he said. The bill is likely to be passed in the ongoing budget session before it is adjourned sine die on April 7.
Turbine fuel tankers pose risk to lives at old Dabolim airport
The lives of people working at the old terminal building of Dabolim airport are at risk due to the movement of tankers containing aviation turbine fuel. As per available information from some of the staff attached to the airlines, the constant movement of tankers loaded with aviation turbine fuel poses danger to the lives of people. It was disclosed that several tankers containing aviation turbine fuel from various petroleum companies make its way to the new terminal building of Dabolim airport in order to provide fuel to airlines which are parked on the apron. These tankers pass from the entrance gate of the old terminal building where several vehicles involving those of yellow black cabs are parked haphazardly. “Airline staff besides passengers, policemen face a risk to their lives, incase of any accident which may take place at the entrance gate of the old Dabolim airport terminal due to constant movement of tankers, carrying aviation turbine fuel,” added an airline staff. He disclosed that the Airports Authority of India (AAI) should take the matter seriously and restrict parking of vehicles at the entrance gate of the old terminal building of Dabolim airport.
Airport Authority of India to study feasibility of height relaxation
The Airport Authority of India (AAI) will carry out a study on the proposal of the Mumbai Metropolitan Region Development Authority (MMRDA) seeking relaxation in the height of buildings in Bandra-Kurla Complex (BKC) and Wadala. Currently, the height restriction for BKC ranges from 40 metres to 80 metres and the MMRDA had requested the AAI grant a height relaxation of 90 metres in BKC and up to 200 metres in Wadala both at a radius of 8 km from the airport. Confirming the same, U.P.S. Madan, metropolitan commissioner, MMRDA, said, “We have been told that AAI has roped in international consultants to study the proposal of MMRDA and the study has also started, so we expect to get the final word on the height relaxation in the coming six months.” According to MMRDA officials, owing to the height restrictions they haven’t able to exploit the total area of every plot efficiently. The height restrictions near airports are imposed for two reasons. The area falls in the trajectory of the runway and tall buildings could be a hindrance in take-offs and landings. Secondly, the restrictions are imposed so that there is no interference with radar signals.
Myanmar: Indian Oil Corp to enter fuel market
Myanmar Petroleum Products Enterprise (MPPE) opened a tender to cooperate as a joint venture (JV) for import, storage, distribution and sale of all petroleum products expect liquefied petroleum gas and liquefied natural gas, reported The Economic Times. The JV will be for a maximum of 30 years, extendable for two 10-year periods. MPPE will hold 51% of the equity while a foreign company will hold the rest. MPPE has been present in Myanmar´s fuel business for a long time. It currently owns four main fuel terminals and 24 sub-terminals. After being privatized in 2010, MPPE sold its 216 gas stations to private companies across the country expect for 12 pumps. The company now wants to re-enter the fuel retailing business of Myanmar, where 70 private companies run the country´s 1163 filling stations, with a foreign partner by the side.
U.S. Taps India as Asia’s Debut Buyer of American Shale Gas
Gail India Ltd. bought the second shipment of liquefied natural gas from Cheniere Energy Inc.’s Sabine Pass plant in Louisiana in a deal that makes it the first Asian importer of U.S. shale gas. The nation’s biggest supplier will receive the cargo, bought on spot basis, at the Dabhol import terminal on the country’s west coast by mid-April, Vandana Chanana, a company spokeswoman, said Friday by e-mail. Faith Parker, a spokeswoman at Cheniere in Houston, didn’t immediately respond to a voice mail left outside office hours and an e-mail sent Friday morning. The deal marks the beginning of U.S. LNG exports into the world’s biggest importing region of the super-chilled fuel, just as regional producers from Australia to Papua New Guinea ramp up supplies. India last year overtook South Korea as the world’s second-biggest importer of the fuel on a spot and short-term basis as buyers took advantage of a slump in prices brought on by the crash in crude oil and an oversupply. “This is the first and definitely will not be the last shipment to go to India from the U.S. Gulf Coast,” Chris Rumley, a senior LNG and natural gas consultant at Poten & Partners, said by telephone from Houston on Friday. “There is terminal capacity in India and if the price is competitive against alternative fuels, then there’s a market there for it.” Higher Price The delivered price of the cargo is about $5 per million British thermal units, according to two people with direct knowledge of the matter, who asked not to be identified because the information is private. Chanana declined to comment on commercial terms. That’s higher than the $4.30 per million British thermal units now paid by customers in northeast Asia for spot cargoes, according to assessments by the World Gas Intelligence publication. Prices crashed 78 percent from the peak in February 2014. The price slump supported demand for spot cargoes in India. Imports rose 45 percent to 9.7 million tons in 2015, the biggest increase in spot and short-term traded volumes last year, according to the International Group of LNG importers annual report published this week. India imported a total of 14.6 million tons of LNG last year, unchanged from a year earlier, according to the group. Tanker Route The Clean Ocean LNG tanker left Sabine Pass on March 15 after loading the second export cargo from the terminal. It’s sailing toward South Africa, according to ship-tracking data on Friday. Some analysts had expected the vessel to go elsewhere, perhaps to South America because of demand there for the power-plant fuel and because of the content of the gas Cheniere was producing. “We initially thought when it left it would be Rio or Kuwait, because of there being hotter gas, meaning higher ethane and C+ content, in the tanks when they started to liquefy,” Jason Lord, LNG analyst for energy data provider Genscape Inc., said by telephone from Boulder, Colorado. “Their regas facilities and grid tend to be able to handle that better in the Atlantic basin. Potentially, this one in India can handle that.” The first batch of LNG from the Cheniere terminal was shipped to Brazil in February, marking the start of U.S. shale gas exports. The third cargo on the GasLog Salem is also set to go to Brazil, while the destination of the fourth shipment on the Energy Atlantic is still unclear, according to the ship-tracking data
Essar Oil plays the ‘made in UK card’ to gain retail market share
Essar Oil is playing the ‘made in UK’ card and pricing products aggressively to grab a bigger piece of the fuel-retailing pie that has been thus far dominated by global energy conglomerates such as BP and Shell. The company has opened six retail outlets, making its debut in the consumer segment, and has plans to run 400 outlets in three years. “Retail venture is aimed at derisking. With our efforts, we have already turned around the Stanlow refinery but now there is limited opportunity in the refinery business,” Naresh Nayyar, executive chairman of Essar Oil UK, told ET. Billionaire brothers Shashi Ruia and Ravi Ruia-led Essar Group acquired the refinery from Royal Dutch Shell in July 2011 and has been able to turn around its performance and capture 15% of the UK’s road transport fuel demand. Essar Oil UK has turned around the loss making unit with a record net profit of $ 187 million in 2015-16 and its highest ever operating profit of $ 340 million in the period, primarily by rationalising operations, increasing efficiencies, diversifying the crude basket and implementing margin improvement programmes. The company has made a quiet foray into the retail business, focusing more on local branding and marketing exercise to leverage of its local presence with the tagline “direct from our UK refinery .” The Essar outlets offer prices at discount to competitors and have managed to clock 20% average revenue growth. “We have grown 45% since we moved to Essar and competitive pricing is a key factor but it also helps that the branding is bright to look at. The chanllege for these guys is to build a big network so that we can use fuel card. A lot of independent companies have talked about entering energy business but this is backed by a multi billion conglmerate and thats why the likes of BP and shell are worried this time,” Shane Thakrar, CEO of HKS Group told ET. His company runs 61 outlets across the country which includes one Essar outlet at Coalville, Leicestershire. SB Prasad, chief commercial officer retail of Essar UK said: “For us to make a dent in this market as an Indian company was tough. We are building a brand that conveys that our refinery is local unlike others.”