Policy to scrap old vehicles submitted to finance ministry: Gadkari
Looking to get nearly 28 million over-11-year-old polluting vehicles off country’s roads, the Ministry of Road Transport and Highways has submitted the vehicle policy to the finance ministry to seek approval. The proposed ‘Voluntary Vehicle Fleet Modernisation Plan (V-VMP)’ provides incentives worth 8-12 percent of the cost of a new vehicle in lieu of surrendering the old ones. “I have submitted the vehicle scrapping policy to the finance minister. It is a good policy and we will take it to the cabinet once it is approved,” Road Transport and Highways Minister Gadkari said.The policy is good for environment and is in the interest of the government, he said.The benefits under the proposed voluntary vehicle modernisation policy will come in three forms — scrap valuefrom the old vehicle, a special discount by the automobile manufacturer and a partial excise duty exemption. Inviting comments from general public and all stakeholders on the draft policy, the Ministry of Road Transport and Highways has said the ‘Voluntary Vehicle Fleet Modernization Plan (V-VMP)’ will be applicable to the vehicles bought on or before 31 March 2005. “The total potential vehicles to be replaced with this definition are nearly 28 million,” as per the draft policy. Under the scheme, people surrendering their old vehicles and buying new one are likely to receive three benefits amounting to 8-12 percent of total cost of the new vehicle, the ministry has said. To ensure that the resultant impact is beneficial to the environment, the replacement vehicle needs to be BS-IVcompliant, which is going to be rolled out nation-wide by April 2017.The draft policy said that it is expected to boost sales of automobile manufacturers leading to higher productioncapacity utilisation and the automobile manufacturers would support the government in this initiative “financially by giving special discounts to customers buying vehicles under this scheme”. Gadkari had earlier said the policy will boost automobile industry turnover over four-times to Rs 20 lakh crore in the next five years. Subject to approval from the Ministry of Finance, it has been proposed that vehicles bought under this scheme may get up to 50 percent excise duty relief based on old vehicle and replacement vehicle category. In addition, SRTU (state road transport undertaking) buses may be given complete excise exemption to ensure higherparticipation and modernise State’s bus fleet. Carlos Lee Jersey
Increase in road traffic has led to decrease in Railway income: Nitin Gadkari
Nitin Gadkari, Minister of Road Transport, Highways and Shipping, on Wednesday said that an increase in road traffic has led to decrease in Railway income. Speaking at the CNBC-TV18 Auto Summit, Gadkari said people prefer to commute by vehicles due to better roads and good roads are an advantage to the auto industry. Speaking on electric vehicles, Gadkari said that he was confident electric vehicles will be a success story. He urged the auto industry to manufacture more electric vehicles. “I think if the prices come down, electric cars will do well. We need to focus on research for electric vehicles,” Gadkari said. [Related-Post] Gadkari said that it is the right of the government to impose a diesel levy. He went on to say that the Petroleum Ministry is working on a huge refinery in Madhya Pradesh. Speaking on Make in India, Gadkari said, “Manufacturing in India is an incentive for all companies and the sector must accept international standards.” Gadkari said that his ministry has submitted a scrappage policy to the Finance Minister and promised to take up taxation issues too. Speaking on the policy front, Gadkari said that any industry must have a long standing policy. He said that the auto industry should give maximum potential for employment generation. Gadkari said that the Centre is giving Rs 900 cr every year to state governments to improve black spots. “In terms of road engineering & safety we are taking preventive measures,” Gadkari added. Speaking on heavy traffic on major roads across various cities in India, Gadkari said that his ministry has already asked an IT company to research the cause of traffic jams. John Franklin-Myers Authentic Jersey
Maharashtra plans $10 billion infra fund
In what Maharashtra claims will be a game changer, the state is planning a whopping $10-billion fund, which would be used for building infrastructure in rural areas of the state and specifically in Mumbai. The move to create this Infra Fund comes after the state has struggled to create new infrastructure because of the huge debt of Rs 3.30 lakh crore. The state is also planning to use the money from this fund to ease the state’s debt. The move to create this Infra Fund comes after many countries like Saudi Arabia, Japan, Germany, Israel and Canada expressed keen interest on investing in the state. Some of these countries have also sought sovereign guarantee to safeguard their investment. The state is in talks with the Centre on whether the latter could give a ‘comfort letter’ for specific projects. Maharashtra government officials are optimistic that the fund would be set up within the next three months. “Talks have been going on for the last four to five months. Many countries like Saudi Arabia, Japan, Germany, Israel and Canada to name a few, have expressed keen interest to invest in the state. A few of these countries have also sought for sovereign guarantee to safeguard their investment.The state is in talks with the Centre on whether a ‘comfort letter’ for specific projects could be given,” said a senior state government official. Last month, Kaustubh Dhavse (officer on special duty), a key official in the Chief Minister’s office, who looks after the execution of key infra projects in the state travelled to Delhi where he met an official of Department of Economic Affairs (DEA) and other finance ministry officials to explore the possibility of the Centre giving such comfort letters. Cliff Pennington Jersey
‘Hope to get Irani’s help in boosting textile exports’: Texprocil
Industry body Texprocil today welcomed the appointment of Smriti Irani as the new Union Minister for Textiles and hoped to get her support in increasing exports and generating employment. The Cotton Textiles Export Promotion Council (Texprocil) also welcomed the appointment of Ajay Tamta as Minister of State for Textiles. Texprocil Chairman R K Dalmia said the industry hoped the special package recently approved by the Centre for the garment sector will be extended to the made-ups segment as well. He said with the Prime Minister’s focus on creating crores of jobs in the key sector in the next three years, Texprocil looks forward to receiving full support from the new ministers for making the industry more vibrant through increase in exports and generating employment. Joffrey Lupul Jersey
Time spent on apps more than doubles in past 2 yrs
India is rapidly moving into the mobile app age and is already the fourth largest mobile app economy. The amount of time Indians spend on apps has also increased dramatically, says mobile-app analytics company App Annie. In total app downloads per year, only China, US, and Brazil are ahead of India. The annual figure for India is projected to grow by 92% to reach 7.7 billion downloads this year, and further to 20.1 billion by 2020. China’s app download is expected to grow at a much slower 29% this year, but the absolute figure will be more than 6 times that of India’s at 49 billion. “With the introduction of affordable smartphones and better infrastructure supporting mobile, and given India’s population, the growth here is expected to be significant,” Junde Yu, MD of App Annie APAC, said. He said the most important thing that is now driving the app economy here is not the number of downloads or the revenue but just the amount of time spent by users on the mobile app. The amount of time Indians spent on apps in the first quarter of 2016 more than doubled compared to that in the first quarter of 2014. In retail apps, the time spent grew by 11.5 times during the same period, driven by e-commerce majors like Flipkart-Myntra, Amazon, and Snapdeal. The time spent on video streaming apps grew by 7.4 times, with YouTube and Hotstar leading the way. Speaking to TOI, Yu said, “People have this perception in India that users spend more time on browsers. That is not true. Our data shows that the percentage of time spent on apps in India is the same as around the world, at 93% (the remaining 7% comes from mobile browsers).” App Annie finds that over 25% of Android users in India use at least one ride-sharing app (those like Ola and Uber). This figure was the highest among all countries – in the US, UK, and Brazil, it is below 20%. “This was a little surprising. But I think India is a developing country so the users are finding the need to use these transport services more,” Yu said. Among ride-sharing apps, Ola is the most used and downloaded app, followed by Uber. In retail, e-tailing firms, who tend to have a mobile-first approach, led the way, quite a contrast to mature markets where brick-and- mortar and web-first players still have a big share. “Close to 75% of the top 10 mobile retail apps in India in both iOS and Google Play store have a mobile-first approach. In the US and UK, this number is only 10%,” Yu said. Flipkart was ahead of Amazon in India in terms of monthly active Android users in Q1 of 2016. However, in terms of app downloads in both Google and iOS app store, Amazon took the top slot for the same period. “Amazon can get ahead of Flipkart. Even in Japan, it is giving competition to homegrown player Rakuten,” Yu said. Asia Pacific is the biggest region in the global app economy, accounting for 50% of total global app downloads. Shawn Williams Authentic Jersey
Exit clause enters Indian startups
Higher the risk, better the reward and greater the uncertainty, bigger the insurance. What was earlier limited to foreign startups is now entering new-age ventures in India: Exit clause. Startup CEO/CXO candidates have begun pitching for specific exit clauses in employment contracts. And employers are responding positively. In a bid to safeguard the interests of such candidates, exit compensation packages are being drafted with great attention to detail. Executive search firms TOI spoke to said some CEO candidates are even roping in law firms for negotiating contracts with prospective employers. An HR head from one of the leading startups told TOI that in his career of over a decade, he had encountered only one case where a candidate insisted on specific exit clauses. It’s a phenomenon that exists in developed markets and is now said to be taking root in Indian startups, especially when valuations are falling. Several Indian startups have founder-CEOs, but as the ecosystem evolves, founders appoint professionals to take on critical roles. Jabong, Housing and Housejoy are among the startups who have hired professional CEOs. Factors such as friction between promoters and CEOs and private equity firms and CEOs have added to the cautiousness of senior executives being roped in for leadership roles in companies operating in high-risk industries. Suresh Raina, managing partner, Hunt Partners, said the executive search firm has seen candidates seeking counsel from compensation experts and law firms while negotiating employment contracts. “When a candidate takes over as challenging a role as CEO/CXO, expectations run high. Successful CEOs deliver the results, more importantly in the initial fast-growth phase. It has become common practice they expect to be suitably compensated for their work, either by way of stock and/or a share of the value creation, even if in challenging times they may not deliver the same kind of growth,” said Raina. CEO tenures, too, are reducing with added pressure on performance of new CEOs and senior leadership. “Candidates thus want to ensure they get a fair share of the success and wealth creation in case of an untimely exit,” said Raina. The trend is especially strong in the startup world where the risks are greater. Sunil Goel, MD, GlobalHunt India, said: “Given the risk attached to startups, CEO candidates are putting in exit clauses quantifying what non-cash benefits would be converted to cash in the event that the company terminates the contract with the CEO within a certain timeframe. We have seen a few high-profile exits in the startup world, either due to differences with promoters or private equity firms.” According to Shatrunjay Krishna, director-rewards, talent & communications practice, Willis Towers Watson, such instances usually take place when some change of control (M&As, etc) is anticipated. For example, in an industry going through consolidation or when a larger company is acquiring a smaller one, the CEO at the smaller company would want to protect his interests and retain critical executives by providing them lucrative severance conditions if the change of control happens. However, at such times, the CEO usually acts on behalf of the management. Sources said some CEO candidates have also individually approached boutique hiring firms to guard their interests in uncertain situations. K Sudarshan, managing partner, EMA Partners India, however, said he would not advise companies, especially startups, to incorporate such exit clauses. “Startups are a risk-reward game where candidates join with their eyes open and are aware of the risks involved,” he reasoned. Jack Johnson Womens Jersey
FDI in aviation: How Vistara, Air Asia India, Jet are affected
The government has clarified that the notification related to foreign direct investment (FDI) in aviation doesn’t impose restriction of management control with Indians in airlines where majority stake is vested with a foreign entity. However, existing airlines like Vistara, AirAsia India, Jet-Etihad and any future carriers with majority stake held by Indian entities will have to ensure that the substantial ownership and effective control (SOEC) rests with Indian nationals. The clarification from the civil aviation ministry came after the department of industrial policy and promotion (DIPP) notified the changes in FDI policy in the sector, but maintained that no other changes in conditions had been made. This meant that despite a foreign entity holding 100% stake in an airline, it would have to ensure that SOEC rested with Indian nationals. However, speaking to FE, RN Choubey put the record straight, saying: “Foreign airlines will not control domestic airlines in case the majority is owned by domestic player.” He added that in case a foreign entity owns a majority stake in an airline, it will not be required to abide by ownership and control structure that requires it to be vested with Indian citizens. Jamie Langenbrunner Womens Jersey
UP govt may seek cancellation of MoU with centre for airports
The UP government is gearing up to move the centre for cancellation of Memorandum of Understand (MoU) it signed with the Airport Authority of India (AAI) two years ago for development of airports in Faizabad, Meerut and Moradabad, in a development that could further sour the relations between the Samajwadi Party and the Bhartiya Janta Party in an election year. The move comes a day after the union civil aviation ministry gave its nod to develop `no-frill’ airports – airport with no non-essential services — in Kanpur, Bareilly, Agra and Allahabad. Sources, however, said that the centre has expressed apprehensions for setting up an airport in Faizabad, Meerut and Moradabad after a feasibility study showed a low Investment Return Ratio (IRR). Experts insist that an airport is viable only when the IRR is 12 – meaning that return on investment is at least 12%. In case of the three airports the value was much low. A top government functionary told TOI that the UP’s civil aviation department has already served a notice to the centre asking as to “why the MoU for the three cities may not be cancelled”. Sources said that a formal decision on the issue is likely to be taken by the state cabinet soon. “If that was the case, the centre should have carried out a feasibility study before signing a MoU,” said a senior official in the Chief Minister secretariat. Ian Thomas Jersey
Civil aviation policy: Warts apart, a credible policy
The National Civil Aviation Policy 2016 aims to provide an eco-system for the harmonised growth of various aviation sub-sectors. The Policy is credible in that it is wide and addresses as many as 22 policy areas while still preserving and maintaining an integrated view of the sector in terms of the vision, mission and objectives outlined in it. Also, it is noteworthy that the policy frameworks outlined for each of the sub-sectors have consistent reference to the identified objectives in terms of establishing an integrated eco-system; enhancing ease of doing business through deregulation, simplified procedures and e-governance; ensuring safety, security and sustainability of the aviation sector, etc. Given the pendency of some of these issues and the associated debate, there had to be trade-offs. What was important was that adequate debate preceded the policy pronouncement and the trade-offs were identified up-front, analysed, and informed choices made through the stakeholder consultation process. The Ministry of Civil Aviation undertook extensive consultations, providing stakeholders the opportunity of sharing their perspectives and viewpoints. So is this a good policy document? A defining feature of a good policy is that it should be amenable to speedy and effective implementation. NCAP’s focus on making flying affordable for the masses and the release of associated implementation details for stakeholder consultation on 1st July is a good example of the policy trying to address longer-term priorities – looking beyond minor tweaks, while remaining focused on speedy implementation Ramon Humber Jersey
Aviation challenge awaits Jayant
Junior minister Jayant Sinha’s shift from finance ministry to civil aviation is being blamed on his father, Yashwant Sinha’s less-than-flattering remarks about the Modi government’s performance. But Sinha Jr is an articulate minister and has carved his place by explaining the Modi government’s objectives in a succinct manner. Ashok Gajapathi Raju – a nominee of the BJP’s key ally, the TDP – cannot be removed from civil aviation even though he has had a pretty patchy record. Last month, when the government decided to permit foreign airlines to hold a 100 per cent stake in domestic airlines, the ministry botched up when it failed to change a key requirement that mandates that Indians should remain in effective control of a domestic airline. Raju failed to address the basic contradiction that exists in the substantial ownership and effective control norms under the aviation policy and the relaxation in the FDI rules. Sinha could have been brought in to the civil aviation ministry to deal with such embarrassments. After the government relaxed the so-called 5/20 rule that permitted newbie airlines like Vistara, co-owned by the Tatas, to fly abroad even though it did not have five years of domestic flying experience, the civil aviation ministry will have to grapple with the bigger issue of farming out unused bilateral rights under agreements that India has signed with more than 80 countries round the world. The bilateral rights cover such aspects as landing rights and the number of seats that can be offered to airlines that wish to fly abroad. Demarcus Walker Jersey