Gayatri Project wins Rs 700 crore contract for Navi Mumbai Airport
Infrastructure company Gayatri Projects said it has won Rs 700 crore project, a part of larger Navi Mumbai International Airport, from CIDCO. “Gayatri Projects has made inroads into the construction of airports by bagging a Rs 700 crore contract as part of the larger Navi Mumbai International Airport from City and Industrial Development Corporation of Maharashtra (CDICO),” the company said in a filing to the BSE. It said that winning the contract shows the company’s commitment to gain a foothold in relatively nascent, but fast growing EPC (engineering, procurement and construction) opportunity sets. “The construction and development of airports will prove to be a major source of business for infrastructure companies, given that the Indian aviation sector is likely to see investments of over USD 120 billion for the development of airport infrastructure and aviation navigation services over the next decade,” it said. The work order pertains to land development of Navi Mumbai International Airport. Gayatri is keen to participate in this effort to make India the third largest civil aviation market by 2020, which will involve the development of many greenfield airports as well as the improvement of existing ones, the company said. James Van Riemsdyk Womens Jersey
IWAI inks pact with IPGPL for Kaladan multimodal transit work
To bolster ties with Myanmar, the Inland Waterways Authority of India has entered into an agreement with India Ports Global Private for a Rs 476-crore project to facilitate connectivity and trade, the government today said. “A memorandum of understanding (MoU) was signed between IWAI and IPGPL on June 1” for projects worth Rs 476 crore, the Ministry of Shipping said in a statement. The Kaladan Multimodal Transit Transport Project (KMTTP) in Myanmar was conceptualised and is being administered by the Ministry of External Affairs (MEA) with a view to facilitating connectivity between the mainland and the North-East through maritime shipping, inland waterways and roads of Myanmar. The link between the north-eastern states of India and Myanmar will pave the way for enhanced trade and commerce across the border and enable cultural and social integration at the regional level, it said. MEA had appointed the Inland Waterways Authority of India (IWAI) as the Project Development Consultant (PDC) for implementation of the Port and Inland Water Transport (IWT) component of the Kaladan Project in 2009 and later, in April 2016, another agreement was signed. India Ports Global Private (IPGPL) has been established as a JV between the Kandla Port Trust and the Jawaharlal Nehru Port Trust for the purpose of development of ports overseas. IPGPL was asked to partner with IWAI in the Kaladan project as a sub-PDC. This was suggested mainly to use and develop capabilities of IPGPL that has been created with an aim to complete implementation of the Kaladan project within the scheduled timeframe of April 2019 and ease pressure on IWAI, given announcement of 106 new National Waterways and execution of the ambitious Jal Marg Vikas project. Under the MoU, the work includes container handling facilities at Sittwe and Paletwa, operation and maintenance of the completed works and wreck removal, the government said, adding that IWAI shall remain as the overall PDC to MEA for implementation of port and IWT component of the Kaladan project.
Govt plans incentive to shift cargo transport from roads to waterways
The shipping ministry plans to offer companies an incentive of Rs.1 per tonne per km to transport goods, including foodgrain, automobiles, cement and other commodities, through inland waterways and coastal shipping. The proposal has been discussed with stakeholders in the transport industry and would soon be presented before the cabinet for its approval. “It is not a subsidy but an incentive being given to the industry for switching to cleaner transportation like inland waterways and coastal shipping from railways and roadways,” a shipping ministry official said on condition of anonymity. With the infrastructure available at present, the incentive offer would cost the shipping ministry Rs.100-150 crore per year during the initial years. At present, just 6% of freight transported in India is carried by coastal shipping and inland waterways; the comparative share in Germany and China is 11% and 24%, respectively. Road freight accounts for 54% and railways 33% of the cargo transported in the country, with the remaining 7% sent through pipelines. A shift from roads and railways to coastal shipping and inland waterways could lead to emission savings of about 3.5% in the freight transport sector, says a shipping ministry presentation. It also suggested a reduction in the cost of coastal shipping by changing the so-called cabotage law, under which only Indian-registered ships are allowed to ply on local routes for carrying cargo. The presentation said that the proposed incentive would also help to increase transportation of petroleum, oil and lubricants (POL), coal, steel and cement by coastal shipping from 6 to 12% in a span of a decade and result in potential savings of Rs.35,000-40,000 crore by optimizing export-import freight and domestic cargo. The government has envisioned increasing the share of waterways transportation from 6% to 10% by 2020. To reach this target, the shipping ministry will now take several steps like moving to larger barges and use of liquefied natural gas instead of diesel barges and dedicated berths, bunkering and storage capacities at relevant ports for commodities to be transported through coastal and inland waterways. The ministry would also suggest the imposition of green taxes on less environmentally friendly modes of transport such as roadways. Additional secretary of shipping Alok Srivastava declined to comment on the proposals which he said were still being finalized. “We did hold a workshop today with all stakeholders and they were quite clear that financial incentives need to be granted to the freight owners to provide a level-playing field for water transportation,” he said, without elaborating. According to the shipping ministry, transportation by waterways would cost 25 paisa per km, by rail and road it’s Rs.1.50 and Rs.2.50, respectively. In terms of fuel efficiency, too, waterways compare favourably: one horsepower can ferry four tonnes of cargo by waterways, while the equivalent is 150kg and 500kg by road and rail, respectively. Jamie Collins Womens Jersey
Domestic air traffic: How IndiGo, Jet Airways, Air India, Go Air, AirAsia India, Vistara performed in May
More and more people are flying in India as is evident from yet another month of double-digit growth in May. Indian air carriers flew 86.69 lakh passengers during the month, 21.63 percent more than 71.29 lakh passengers last May, according to government (DGACA) data. Relaxation of FDI norms for the aviation sector buoyed stock prices of Jet Airways, SpiceJet and Indigo-parent Interglobe Aviation on Monday on the BSE. At around 3.10 p.m., SpiceJet share rose 7.82 percent to trade at Rs. 69.60, Jet Airways was up 6.53 percent at Rs. 585.90 and Interglobe Aviation had gained 5.92 percent to trade at Rs. 1,070.20. Indigo maintained its leadership with a market share of 38.5 percent in May, carrying 33.37 lakh passengers. However, it marked a marginal decline from 38.7 percent in April. State-run Air India increased its share for the third month in a row to 15.6 percent in May, while Jet Airways, the second-biggest carrier, also saw its market share go up to 16.1 percent last month from 15.9 percent in April. SpiceJet’s share declined to 12.6 percent in May from 12.9 percent in April. Go Air also saw its share fall marginally to 8.1 percent from 8.5 percent in April. AirAsia India and Vistara — the two ventures in which the Tata Group has stakes — improved their share to 2.2 percent and 2.5 percent, respectively, from 2.1 percent and 2.3 percent. In absolute terms, Jet Airways flew 13.94 lakh passengers while Air India carried 13.49 lakh passengers, indicating that the gap between the two full-service airlines is narrowing. Chandler Jones Womens Jersey
Air India to select jets for regional connectivity
Air India is planning to launch flights to more regional destinations across India, and has initiated the process of identifying the aircraft to be used. The Economic Times reported the national carrier’s chairman & managing direction, Ashwin Lohani, as saying that he is planning to introduce several smaller jet aircraft to facilitate the expansion. “Our prime focus is to increase regional connectivity. We will try to connect as many places as possible,” Lohani was quoted saying. “We are looking at various [aircraft] options, but smaller jets seem to fit the bill. They would be faster, cost less and, perhaps, even be cheaper to operate,” he added. Currently, the airline operates three Bombardier CRJ-700 regional jets, along with a fleet of ATR turboprop aircraft. The new aircraft are likely to be Bombardiers. Jack Ham Womens Jersey
Passenger Centric Amendments proposed for Airline Industry
The Minister for Civil Aviation Mr. Ashok Gajapathi Raju said that his Ministry was committed not only to the growth of the Airline industry but also to ensure that flying for most Indians becomes a pleasant experience. In keeping with this commitment he along with MOS Dr. Mahesh Sharma, presided over a presentation made by DGCA with regard to Passenger Centric Initiatives. The first category of amendments have been made in CARs related to “Refund of Air Tickets”. The Ministry has proposed that the refund process should be completed within 15 working days in case of domestic travel and 30 working days in case of international travel. It also proposed that in case of cancellation of tickets, statutory taxes and user development fee or airport development fee or passenger service fee should be refunded. The Ministry has also proposed in this category that under no circumstances cancellation shall be more than the basic fair. In the second category of CARs related to “Denied Boarding, flight cancellation and flight delays”, the Ministry has proposed that an amount equal to 200% of booked one-way basic fair plus airline fuel charge subject to maximum of INR 10,000/- would be paid to passengers in case airline arranges alternate flight that is to depart after one hour but within 24 hours of the booked scheduled departure. Josh LeRibeus Authentic Jersey
Chinks in the new aviation policy’s armour
India’s first-ever National Civil Aviation Policy (NCAP) formulated by the NDA governmentis no doubt well-intentioned and aimed at achieving overall growth of the sector in a structured manner. However, several shortcomings, as pointed out by analysts, could derail the projected growth and objective. The policy has touched almost every aspect of civil aviation, but gives no direction for professionalising the Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BACS), crucial entities that govern aviation safety and security in the country. Though measures have been announced to strengthen both these entities and bridge the deficit, the policy is silent on how to radically transform these organisations to meet modern-day challenges and to be process-driven to deliver world-class service. With around 20 per cent growth in the number of air passengers, what India needs is strong air safety and security regulators. The expected upside in helicopter operations, private flying and regional airlines will add to the pressure. Kapil Kaul, Chief Executive Officer, South Asia, Centre for Asia Pacific Aviation (CAPA), says: “India’s safety and security dynamics are structurally changing, NCAP is not focused on managing these challenges.” Mark Barberio Authentic Jersey
Civil aviation policy potential gamechanger
The Modi government’s integrated Civil Aviation Policy has the potential to be a gamechanger not just for the airline industry’s revival and growth but also for the government in terms of policy-making process and orientation. Sustained engagement with stakeholders and a win-win policy orientation can be adopted for other sectors too. The crux of the policy is the dove-tailing of industry growth with passenger benefits. The government wants more members of the 30-crore strong middle class to fly which would help the troubled airline industry by boosting revenues and possibly profitability too. Though the low-cost airlines played a major role in making flying affordable for the upper middle and middle classes, the growth and expansion in number of tickets sold has not been substantial and sustained. One such initiative is the Regional Connectivity Scheme with a cap of Rs 2500 for an hour-long flight of about 500-600 kms which it hopes would lure more people to fly. Similarly, diluting the norms for airline companies to fly on international routes — the 5/20 rule — would mean more frequent flights and possibly at competitive prices. The integrated policy covers 22 areas and most of them would be acceptable to all. But industry analysts and observers are critical of aspects the policy is silent about, be it privatisation of loss-making Air India or the roadmap for setting up an independent and autonomous Civil Aviation Authority. Rod Langway Womens Jersey
100% FDI in airlines: Air India will have to shape up or ship out
The opening up of Indian Airlines to 100 percent foreign direct investment (FDI) came today after a lot of hesitation and dire warnings of compromising – what else – the nation’s security by allowing foreigners control in a sensitive sector. For years we have been paranoid about security implications of allowing foreigners in the cockpit as far as our airlines are concerned, so much so that the first such step in 2012, when FDI by foreign carriers was allowed but capped at 49 percent, was also widely seen as a government bowing to the wishes of some powerful global airlines. Today’s announcement, which allows up to 100% FDI in schedule airlines and regional carriers subject to government approval, has the potential to bring remarkable changes to India’s aviation sector in the near future. As per a government release, foreign airlines can still pick up only up to 49% equity in Indian carriers. This should not be a problem since the remaining can be bought by an entity like a sovereign fund of the country the purchasing carrier belongs to, taking effective control to 100%. That India needs FDI is a no brainer. That it will help almost all sectors including civil aviation is also obvious. So the downside to this decision of allowing up to 100% FDI in Indian airlines seems to be limited. Perhaps Air India may now find that the virtual monopoly it had over overseas routes gradually recedes as stronger, deep-pocketed foreign players may set up ventures in India (or buy out existing ones) and take over lucrative foreign routes. Air India may need to pull up its socks but for private airlines, there should be little cause for concern. Matt Duchene Jersey
Andal airport operator blames AI for ‘unilaterally’ stopping flights
Bengal Aerotropolis Projects Ltd (BAPL), promoter of the country’s first greenfield private airport at Andal near Durgapur, on Friday accused Air India of step-motherly attitude. BAPL is a joint venture with Singapore-based Changi Airports International. AI has withdrawn its thrice-a-week flight on the Kolkata-Durgapur-Delhi sector from June 16, allegedly for non-payment of viability gap funding (VGS) dues. The airport opened in December 2015. On Friday, the national carrier invoked BAPL’s ?2.25-crore bank guarantee. BAPL managing director Partha Ghosh termed the AI decision “unilateral”. The airport received the notice on June 16, a day after AI confirmed the decision to media citing “operational reasons”. Even the West Bengal government was in the dark. Load factor “AI stopped flights to Andal that offered as good a passenger load as their national average, if not better. At the same time, they are operating flights to sectors offering negligible load,” he said. According to Ghosh, in February AI operated Delhi-Tirupati flights at 19 per cent load. The Delhi-Kullu load factor was 33 per cent; Delhi-Khajuraho and Delhi-Varanasi 47 per cent each; Mumbai-Guwalior 61 per cent, and Delhi-Rajkot 67 per cent. In comparison, Durgapur offered 73 per cent capacity utilisation. Between January and April, the Kolkata-Durgapur-Delhi sector ran at 75.09 per cent load against AI’s national average of 79.05 per cent. Most passengers boarded from Durgapur. The load was not one way and, on many days the flight was full. Ghosh said: “Ticket sale maximisation depends on the pricing mechanism. Initially, AI was earning ?11-13 lakh a day against the declared ?22.5 lakh operating cost, for VGF funding. While we have no control over AI’s ticketing operations, we did our best to improve the revenue to ?18 lakh a day. “Six months is too short a time for a new route to establish. Due to flight timing, (placed between two direct Kolkata-Delhi flights), there was low traffic from Kolkata. That the flight still attracted a reasonable load proves the potential of Andal airport.” High operation cost But why was AI not paid the VGF money? BAPL says that while AI raised a demand of ?8.5 crore (?13 crore, according to AI sources), the company sought reconciliation of accounts against airport’s spending on ground handling (on behalf of AI), promotion, cost borne on passengers due to “average three to four hour daily flight delay in January-February”. BAPL alleges AI didn’t respond to its plea. “AI services (?22.5 lakh a day) are exorbitantly costly, when compared to private airlines (like GoAir, IndiGo, SpiceJet) proposing to operate flights at ?13.5-14.5 lakh a day. However, due to aircraft availability issues, most such offers were scheduled for later part of 2016,” the private airport said elaborating reasons behind choosing AI. AI responds An AI spokesperson said that as a national carrier the company is committed to the cause of regional connectivity and is open to discussion with BAPL. On the cost of AI operations, he said the airline is at par with other full-service airlines like Jet. Xavien Howard Womens Jersey