National Highways Authority joins Masala bond drive
: National Highways Authority of India has invited banks to submit expressions of interest for an offering of Masala bonds at a minimum tenor of five years to raise the rupee equivalent of $750 million, according to market sources. These will be the company’s debut Masala issue. India Ratings, CARE and CRISIL have assigned AAA ratings to NHAI’s long-term domestic borrowing programme. Despite interest from issuers, no Masala bond issues have been completed yet, but there is a strong pipeline building from public sector companies. NHAI says it will consider issuing offshore rupee bonds of 10, 15 and 20 years. It has given banks until the end of this month to respond. Earlier this week, India’s largest power company, NTPCBSE -2.10 % , had said it was looking to raise $250 million from an offering of Green Masala bonds, according to market sources. NTPC was said to have mandated Barclays, Citigroup, Deutsche Bank, HSBC and SBI Capital Markets for the offering. Last week, Rural Electrification Corp sent a request for proposals to raise $100 million from Masala bonds, with a greenshoe option to increase the size for up to $200 million. The Reg S bonds were to have a tenor of three years and one day. The proceeds will be for financing infrastructure projects in the power sector. Banks have until July 4 to respond to REC’s call for proposals. REC is rated Baa3 and BBB by Moody’s and Fitch, equivalent to the sovereign rating of India. ICRA and CARE have assigned AAA ratings to REC’s local bonds. Bradley McDougald Jersey
Airlines providing regional connectivity to have simple rules for entry and exit: Aviation ministry
The civil aviation ministry has decided to come up with easy entry and easy exit rules for airlines providing regional connectivity, as it wants to ensure maximum industry participation in a programme that seeks to take flying to the masses. “We do not want a situation where tough exit rules discourage airlines or companies from launching airlines to provide regional connectivity. We will provide an easy entry and easy exit option to operators,” aviation secretary RN Choubey. In the easy exit option, any airline that starts operations on regional routes will be allowed to shut shop and leave if it feels that the operations will not be profitable after a stipulated period of time. The duration will be decided at the time when the route is awarded to a particular airline. These rules are likely to be part of the policy on regional connectivity that will be released within 10 days. Consultancy firm Deloitte is preparing the report for the government. Currently, no such exit rules exist for any other category of airlines. Mitch Richmond Womens Jersey
Majority foreign stake puts curbs on overseas flights
Airlines with a majority foreign ownership will not be allowed to fly on international routes, senior Civil Aviation Ministry officials said on Tuesday. On Monday the government liberalised norms in the sector, allowing foreign investors to own up to 100 per cent stake in domestic carriers. The bilateral air traffic agreements that India has signed with most of the countries have ‘substantial ownership and effective control’ (SOEC) clause which may not permit the airlines with majority foreign ownership to fly abroad from India, a senior Ministry official said. At present, India has bilateral air service agreements with 109 countries. “The SOEC clause is applicable at two places – at the stage of air operators’ permit and for bilateral rights to fly abroad,” said another senior official. The ICAO template on air services agreements says the SOEC norms in bilateral agreements address “potential concerns such as safety, security or other economic aspects including potential emergence of “flag of convenience.” However, the template is not binding and the countries are free to set their own terms. India will have to amend the SOEC clause in its agreement with a particular country for allowing an airline with majority foreign control to fly abroad, an official said. “At present, only a couple of countries that India has bilateral agreements with do not acknowledge the SOEC norms,” the official added. James Develin Authentic Jersey
Curb unfair air fare hikes: House panel
A parliamentary standing committee on consumer affairs has asked the civil aviation ministry to put checks on “abnormal increases” in air fares. The panel took up the issue on Monday following reports of high increase in air fare during the jat protest in Haryana. The panel headed by TDP parliamentarian J C Diwakar Reddy also expressed dissatisfaction regarding the present practice of allowing airlines to increase fare upto 10 times of the minimum. The committee has asked the civil aviation ministry to take the views of consumer affairs ministry while making any policy decision. Sources said that some of the MPs, who are members of the panel, also shared their ordeal and experiences with airlines. The members were unhappy that the airlines have been taking fliers for a ride to make profits and there is a need to regulate them. Tracy McGrady Authentic Jersey
FDI Alone Won’t Help – Major Restructuring Needed For AAI Take-Off
The latest foreign direct investment (FDI) reforms in the civil aviation sector should ideally bring the focus back on airport infrastructure in many brownfield ventures which have failed to improve, thanks to the triad of slothful Airports Authority of India (AAI), labour unions and opposition-ruled states blocking such moves. The true test of the benefits of raising FDI in brownfield airports to 100 percent without prior approval (earlier, FDI beyond 74 percent was subject to approval) may actually come when Chennai airport’s ceiling doesn’t crumble every other day. India is one of the fastest growing aviation markets in the world and boasts of some world-class airports in Delhi, Bengaluru, Hyderabad and Mumbai on the one hand, and hundreds of ghost airports with not a single flight on the other. Now that back-to-back reforms for airlines have been unleashed, by diluting the 5/20 restriction for overseas flights and removing caps on foreign investment, it is time the country got its airport infrastructure up and running too. If the airport infrastructure fails to keep pace, the liberalisation in airline ownership and operational conditions would be rather meaningless. Drew Bledsoe Womens Jersey
Foreign airlines can control Indian carriers via group firms
While foreign airlines can’t directly own more than 49 per cent in Indian airlines, despite Monday’s liberalised Foreign Direct Investment (FDI) policy, their group companies or investors can fully own airlines in India with government approval. So while the likes of AirAsia and Singapore Airlines will continue to have a cap of 49 per cent on their stakes in Indian arms, AirAsia India and Vistara, foreign funds and non-airline companies will be allowed to fully own a domestic, Indian airline. The government is looking to dilute the rule which makes it mandatory for an Indian carrier to be controlled and owned by an Indian or an Indian entity. This will increase competition for Indian airlines, as deep-pocketed airlines from the Gulf will be able to set up shops in India through their group companies. This will allow the likes of Etihad, Singapore Airlines and AirAsia to gain management control of Jet Airways, Vistara and AirAsia India through their group companies. Qatar Airways had earlier tried to use the Qatar Investment Authority, a sovereign wealth fund, to buy into Indian budget carrier IndiGo. Donald Trump Jersey
Companies like Voltas, HPCL and others focus on consumer business to overcome slowdown
There are several instances of companies, including Voltas, HPCL, Aegis Logistics, Crompton Greaves and Shilpi Cable Technologies that have steadily increased their consumer businesses. Banks are turning more towards consumer lending to counter slowdown in corporate earnings growth. So, what is prompting companies in traditional B2B space to go for a B2C model? With economy under stress and earnings under pressure, companies are prompted to chase high-margin business opportunities, which are usually in the retail consumption business. Thanks to the information asymmetry, retail consumers typically do not have the same bargaining power as corporates in business deals. Increased exposure to consumer retail business also helps enhancing valuations on the Street. Little wonder, companies from consumption-driven sectors such as FMCG, pharmaceuticals, automobiles typically trade at higher valuations. Crompton Greaves managed to unlock value for its investors after listing its demerged consumer electrical products division. So, does it mean that B2B business models would fall out of favour? Unlikely. When the macro economic situation improves, companies refocus on increasing revenue base through (lower margin) B2B business. Besides, growing a B2C business is fraught with challenges of retaining individual customers and continuous investment in brands. Tamba Hali Authentic Jersey
Travel startups beat ecommerce marketplaces in funding race this year
Startups in travel business have received more funding than ecommerce marketplaces so far this year, according to data sourced from research firm Tracxn. Travel startups have received $366,450,000 while ecommerce marketplace startups have received $357,831,100 in funding since the beginning of 2016, as per the data. A bulk of the funds for travel startups came through two deals, with Ibibo Group raising $250 million in February in a Series-C round while OYO Rooms raised $100 million in a Series-D round in April. Although travel startups are only marginally ahead, this is the first time since 2011 that the segment has featured among the top three funded sectors. Online marketplaces stopped short of being the highest funded segment only in 2010, as per data from Tracxn. Though much of the funding for travel startups this year came through just two deals, the sector has seen increasing interest from investors since last year, according to Tracxn’s data. Travel startups raised among the highest funding in the third quarter of 2015, with ConfirmTkt, HolidayIQ, JetSetGo, TripFactory, Wetravelsolo, WudStay, Zo Rooms, 14Square, NightStay, OYO Rooms and Zo Rooms raising $164,100,186 between July and September. However, during that quarter, e-commerce marketplaces were way ahead with $1,506,624,000 raised by firms including Flipkart, Snapdeal, Paytm, Stylecracker, Gadgets360 and Glowship. In the first quarter this year, travel startups saw a funding of $253,250,000 raised by ConfirmTkt, SavvyMob, Ibibo Group, Roadhouse Hostels and Roomoncall while in the ongoing second quarter GoHero, OYO Rooms, RailYatri, Easy Roads, Stayzilla have raised $113,200,000. Olivier Vernon Jersey
E-commerce sites unfavorable for local traders in Ranchi
Seeking a level playing field to do business in the state, an 11 member team of Dhanbad Chamber of Commerce went on a day-long hunger strike at bank more on Wednesday against e-commerce portals. Traders said online shopping portals like Amazon and Flipkart have eaten into their profits, bringing down their counter sale by 25%. Dhanbad chamber president, Rajesh Gupta, told TOI the strike will hopefully turn the spotlight on the plight of small businesses in the state. “The e-commerce portals offer big discounts and also run at a loss at times to put small-time enterprises out of business,” said Gupta. Gupta said small businesses are unable to compete with e-commerce players as they do not have “big capital”. “Items are sold at a fraction of the cost on online shopping sites, or at the factory rate. Middle-class families have access to smartphones, giving them the power to make purchases easily. If action is not taken against these online retailers, we might have to shut shop,” he added. Gupta said products worth Rs 10 crore enters Jharkhand on a monthly basis, without the state government earning any revenue of it. Jharkhand Chamber of Commerce president Pawan Sharma said the state government should define borders perfectly and impose tax on goods that enter the state. He also said that state chamber is in negotiation with union finance ministry to guard the interest of small businessmen across the country. Jason Myers Authentic Jersey
OIL-led consortium inks deal for 24% stake in Vankor oil field
Deal is valued at $2 billion and is expected to close by September 2016. A consortium led by Oil India has signed an agreement to acquire 23.9% stake in Russia’s second biggest oil field of Vankor from Rosneft. The deal is valued at $2 billion. The stake acquired by OIL-led consortium is in addition to the 15% interest picked up by ONGC Videsh Ltd in the Vankor oilfield for $1.268 billion. “Indian consortium, led by OIL, along with Indian Oil Corp and Bharat PetroResources Ltd, a subsidiary of Bharat Petroleum Corp Ltd (BPCL), signed definitive agreement to acquire up to 23.9% shares from RosneftOil Co in JSC Vankorneft, a company organised under the law of Russian Federation which is the owner of Vankor and North Vankor field licenses,” OIL said in a statement. The deal is expected to close by September 2016. The 23.9% stake would be split in the ratio 33.5-33.5-33 between IOC, OIL and BRPL (IOC and OIL picking up 8% stake each while the remaining 7.8% stake would go to BRPL). Rosneft holds 85% shares in Vankor while ONGC Videsh Ltd (through its subsidiary) holds 15% at present. Vankor field, located in East Siberia, is Russia’s second largest field by production and accounts for around 4% of Russian production and currently producing about 422,000 barrels of oil per day. “It is the largest of the fields, discovered and commissioned in Russia during the last 25 years and is located in the North of Eastern Siberia in Turukhansk district of the Krasnoyarsk Territory, 142 km away from Igarka town,” the statement said. The recoverable resources of the Vankor field as of January 1 stood at 361 million tonnes of oil and condensate and 138 billion cubic meters of gas. “With the closure of the Vankor deal, IOC’s equity oil portfolio will go up by 1.6 million tons per annum,” it said. Further, Rosneft has agreed to sell another 11% stake in Vankor to OVL. Details of this deal are yet to be finalised. The acquisitions have significant strategic importance to India, both in terms of augmenting energy security as well as enhancing its stature in the global political and economic arenas, the statement added. Justin Simmons Authentic Jersey