Centre to finalise new aviation policy soon

The Government of India expects to finalise the much-awaited new aviation policy and revised international flying norms for domestic carriers within a month. Though the consultation process with the stakeholders on the twin subjects are almost complete, the ministry might look at having some more discussions in this regard, a senior Ministry of Civil Aviation official said yesterday.
“We are close to finalising them (new aviation policy and revised overseas flying norms. It is expected to be ready in about a month’s time,” the official said.Besides, formulating a new civil aviation policy, the government is in the process of doing away with the ‘5/20’ norms for domestic airlines. Under the norms, only carriers having been in operation for at least five years and with a fleet of at least 20 aircraft are allowed to fly on international routes.

However, the proposed norms have come under criticism from both the established as well the start-up carriers with the latter having apprehensions about regional connectivity conditions. The official also said that the search for the new Chairman and Managing Drector for the national carrier Air India is going on in the right direction. “We are working on finding a successor (as incumbent CMD’s tenure is ending in August). We are working to ensure that there is no discontinuity or gap in functioning of Air India,” the official said.The incumbent Rohit Nandan’s tenure expires in August and the government has to take a decision before that. When asked whether Nandan, who is already on an extended tenure, would be given another extension, the official said, the government is not ruling out any option.

Google emphasises importance of online research in travel sales

Google has launched the Consumer Barometer 2015, the most comprehensive free tool for planners looking to understand and compare how people use the internet around the world.Entering its fifth year, it is the best tool of its kind in terms of size, scale, and the depth of questions covered, enabling users to compare digital, mobile, video and shopping habits across 56 countries, including tech-savvy Britain.

British consumers continue to lead Europe in mobile technology adoption. Nearly three-quarters have a smartphone compared to the European average of 61 per cent, and 60 per cent use search engines via their smartphone at least once a week, making it crucial for businesses to think mobile.They also have more devices than ever, with the average UK consumer now owning 3.3 devices, up ten per cent from 2014.Some 51 per cent own tablets and 75 per cent own personal computers.

Naturally, given the number of devices owned, Brits are frequent internet users, with 85 per cent going online at least once a day.That figure rises to 92 per cent among those under 44 years old.And with so many internet connected-devices at their fingertips, multi-screening is increasingly common.Some 64 per cent of Brits go online while watching TV, with 63 per cent using their smartphones to do this, and 36 per cent using a tablet or computer.

Bank of China moves in to sell Sahara’s Grosvenor House

The Sahara Group may lose its hold on the iconic Grosvenor House hotel in London. Its Iargest creditor, Bank of China, has put the property up for sale to recover its dues.

Sahara had planned to sell or refinance its three offshore properties to realise sufficient amount to enable the release of its jailed chairman, Subrata Roy.

The company has reportedly taken a $900-million (`5,580 crore) loan from Bank of China to buy the London hotel, as well as  The Plaza and Dream Downtown in New York.

The Telegraph of London on Tuesday reported that Deloitte has been appointed as administrator for the Grosvenor House sale. “We are in the process of agreeing on a sale strategy,” a Deloitte executive said.

There is no word yet on The Plaza and Dream Downtown.

Sahara confirmed that an administrator had been named, but claimed it could continue to explore refinance options, its preferred deal, with the administrator’s approval.

“The loan on Sahara’s three hotels from Bank of China is cross-collateralised and cross-guaranteed,” it said in a statement.

“The debt servicing for the UK and US loans has always been completely proper and timely. However there has been technical breaches of the financial covenants in the loans on the US hotels because of which Bank of China has declared an event of default on the US loans. But because of cross collateralisation,  the loan on Grosvenor House also is being treated under default,” the statement added.

After refinancing is obtained, the administrator would return control of the property back to Sahara, it said.

2G and 3G spectrum auction starts today

Auction for 2G and 3G spectrum starts on Wednesday pitting the country's biggest business houses led by Mukesh Ambani, Sunil Bharti Mittal, Kumar Mangalam Birla, Anil Ambani and the Tata Group against each other in a sale which can net the govt a minimum Rs 80,000 crore at reserve price.

The govt plans to sell 380.75 MHz of spectrum in three 2G bands — the premium 900 MHz band, 1800 MHz and 800 MHz —besides 5 Mhz in the 2100 Mhz band (3G) across 17 out of 22 telecom areas in the country. Experts expect fierce bidding for the cost efficient 900 Mhz band, which can also be used for 3G services.

TCS achieves Superbrands status in UK

Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions organisation, has been awarded Business Superbrands status for 2015, following the most recent evaluation of the long-running annual survey, which has been identifying the UK’s leading business-to-business brands since 2001, says company release.

The process was managed by The Centre for Brand Analysis (TCBA) and questioned 2,000 individual business professionals from across the UK as well as the independent and voluntary Business Superbrands Council. The three audiences judged more than 1,200 brands, which they assessed on three key criteria: quality, reliability and distinction. Brands do not apply or pay to be considered for Superbrands status.

TCS has established a strong reputation for its ability to deliver industry-leading IT services and digital transformation projects across a wide range of sectors in the UK. The company’s UK clients have ranked TCS number one for customer satisfaction for the second consecutive year in a major survey conducted by Whitelane Research in collaboration with Source.

In the recent past the company has invested heavily in its UK brand presence. According to Ipsos Mori TCS’ brand awareness in UK boardrooms has risen by 300% in the last 5 years, with a 2014 ‘Captains of Industry’ study citing that one in every three UK board members polled stated they know TCS very well.

TCS has also recently been recognised in a number of awards including Best Performing Consultancy Brand at the MPF Awards for Management Excellence, and Brand Strategy of the Year at The Drum Marketing Awards. TCS brand position has also significantly developed through recent recognitions of its role as a key UK employer and contributor to UK society through CSR programmes.

Recent awards include TCS certification as the number 1 UK employer by the Top Employers Institute; the Corporate Responsibility Award of the Year at the HR Network National Awards; the Gold level certification from Investors in People, and the award for Best CSR Strategy at the HR Excellence Awards.

As further recognition of its enhanced brand strength, the most recent ranking by UK based Brand Finance, names TCS as the fastest growing IT Services brand globally over the last five years. In the five year period 2010-2015, TCS emerged as the clear growth leader in the industry, increasing its brand value from US $2.3 billion to US $8.7 billion, while retaining the industry’s highest brand strength rating of ‘AA+’.

It was also recognised as one of the top four global brands in IT Services for the fourth year in a row, cementing its position in the highest league of the industry.

Shankar Narayanan, Country Head, UK & Ireland, TCS, said: “TCS is thrilled to join the exclusive club of UK Superbrands. This shows our ascension from being a brand known primarily in the business circles we operate in, to a brand much more widely recognised and appreciated in boardrooms, and across the UK business community. My congratulations to all other Superbrands, many of whom are our clients and partners in the UK. ”

Sebastien Lamour, Senior Research Analyst, IDC said: "As a result of its business performance, client orientation and marketing efforts TCS has increased its brand awareness to the topmost level of not only the IT industry but the UK business environment. TCS' brand status is noticeably strengthening and shows that the company is successfully creating brand advocates amongst its clients, employees and within the communities in which it operates - creating positive word-of-mouth which is driving the rapid evolution of the brand."

Stephen Cheliotis, Chairman of the Business Superbrands Council said: “Having a strong reputation is as essential in business-business markets as in business-consumer markets. That said it is often ignored by management, or certainly lower in the list of priorities, for many business-business companies, meaning they miss out on the clear benefits a strong brand provides. Those brands awarded Business Superbrand status should therefore be praised for focusing on, and more importantly succeeding in, building a recognisable, powerful and respected brand. The competitive edge the leading Business Superbrands can enjoy is just reward for their endeavours and creates a virtuous circle that will further reaffirm their positive position relative to peers”.

Govt and RBI agreement to bring down inflation below 6 per cent

The government and the Reserve Bank of India have signed an agreement on Monetary Policy Framework whereby the government has set a target for RBI to bring down inflation below six per cent by January 2016. The Agreement, which was signed on February 20 but made public yesterday, veers round to RBI Governor Raghuram Rajan’s view that India too should move towards inflation targeting, which is common in developed economies.

Currently, the Centre and the RBI give inflation estimates, but don’t set targets. As per the agreement, If the RBI fails to meet the target, it will have to report to the government the reasons for the failure to achieve the target, what remedial action it proposes to take and estimate of the time period within which the target would be achieved.

The agreement will put in place a framework of a modern monetary policy to meet the challenges of an increasingly complex economy. According to the agreement, this framework will be monitored by the RBI. The Agreement, in line with the recommendations of the RBI’s Urjit Patel committee, will smoothen the monetary policy scene.

It will provide a predictable policy stance on inflation, helping investors, especially in the debt market. The Agreement also binds the Centre to taking proactive measures for price control. The country has suffered the vagaries of price volatility because of, one, its big reliance on imports for fuel and, two, the farm sector’s dependence on the monsoon.

Finance minister Arun Jaitley had in his budget speech said that the government would amend the RBI Act to provide for a Monetary Policy Committee and have a memorandum of understanding with the Reserve Bank.

Biggest ever auction of 2G and 3G spectrum begins today

Department of Telecom will start the biggest ever auction of 2G and 3G spectrum today where in 8 firms will bid to acquire radio waves in four bands, which may fetch the government over 82,000 crore. 
The government has planned to sell 380.75 Mega hertz of spectrum in three bands - the premium 900 Mega hertz, 1800 Mega hertz and 800 Mega hertz, besides 5 Mega hertz in the 2100 Mega hertz band across 17 out of 22 telecom areas in the country. 

Based on the reserve price, the government is estimated to garner over 82,000 crore rupees. The reserve price for auction of 2G spectrum in 800 MHz, 900 Mhz and 1800 MHz bands will fetch the government 64,840 crore rupees.Most of the spectrum being put up for the auction is presently held by Airtel, Vodafone, Idea Cellular and RelianceTelecom. Their licences are expiring in 2015-16. The government had raked in 62,162 crore rupees from the last spectrum auction in February 2014.

E-commerce giants to absorb big real estate this year

After fundraising, deals and valuations last year, now the e-commerce companies are turning their focus on to office space absorption. They are looking out for prime locations across big cities including Delhi-NCR, Bengaluru and Hyderabad.During 2014, to push their ambitious growth plans, the companies like Flipkart, Snapdeal, Jabong and Amazon have opted for leased premisesfor their opeartions. And now, if their current plans are of any indication, during 2015 they could see and even greater uptake by them.

According to repports, Flipkart likely to sign campus in Bengaluru, spreading over three million square feet. This may be the biggest office space deal for an e-commerce firm in 2015.On its part, Amazon, Jabong and Snapdeal - and others - are likely to join the race to buy big properties.Cushman & Wakefield, a leading international consultancy firm reports, it is learnt that Flipkart - which has 10 offices in Bengaluru, where it is headquartered, and 13 warehouses across the country - is in the final stage of signing a deal for its proposed campus.

Reports further reveal that the company had identified Embassy Tech Village in Bengaluru.Considering the ruling rental rates which pegged at around Rs 48 per sq ft per month - that translates into a rent of Rs 14.4 crore a month, or over Rs 170 crore a year, says the real estate source.

Hindalco wins Kathautia mine for Rs 2,860/tonne

Hindalco Industries on Sunday emerged as the successful bidder for the Kathautia coal mine in Jharkand at a price of Rs 2,860 per tonne.The company is expected to win for two more mines — Sarisatolli in West Bengal and Belgaon in Maharashtra.The Jharkhand government is likely to garner Rs 6,800 crore, over a period of 30 years, from the Kathuatia mine that has geological reserves of an estimated 30 million tonnes (mt).

Sarisatolli is reserved for the power sector.

The Belgaon mine, located in Maharashtra, is reserved for sponge iron production.

While the Sial Ghoghri block in Madhya Pradesh went to the Anil Ambani-owned Reliance Cement.

Meanwhile, the coal ministry has also announced that 130 bidders have technically qualified to participate in the final round of auction for 21 schedule III (near operational) blocks.

Petrol price hike by 82 paise, diesel by 61 paise

Petrol price has been hiked by 82 paise a litre while the diesel price has gone up by 61 paise per litre in Delhi including State levies. Increase in retail selling price of both the petroleum products will go up in other states depending on the levies charged on petrol and diesel.

The new rates will come into effect from midnight tonight. This is the first increase since August 2014. With this, the petrol will cost 57 rupees and 31 paise in Delhi, 65 rupees and 29 paise in Kolkata, 64 rupees and 81 paise in Mumbai while it will be 59 rupees and 85 paise per litre in Chennai.On the other hand, the diesel will cost 46 rupees and 62 paise in Delhi, 51 rupees and 54 paise in Kolkata, 53 rupees and 67 paise in Mumbai and 49 rupees and 58 paise in Chennai.

Indian Oil Corporation in a statement said that the prices of these two fuels have been hiked in view of the steep increase in the oil prices in international market as well as due to the slight depreciation in the exchange rate of rupee value against dollar. Prior to this increase, petrol price had been cut on10 occasion since August and diesel six times since October last year.

Flipkart targets sales worth $8 b in 2015

Flipkart is looking at sales worth $8-billion in the current year.The company is also targeting to sell one billion goods on its platform annually within a couple of years.In March last, Flipkart hit an annualized run rate revenue of $1 billion.The company’s current gross merchandise value (GMV) is over $3 billion, the sources added.The e-tailer said the company wanted to sell 25 million units a month, and would add 100,000 sellers on its platform in the current year.The company, which has raised around $2 billion in funding so far, is aggressively expanding its infrastructure and seller base.

Good news for credit card holders

Interest on card dues may drop with the intervention of RBI. The regulator asked banks to revisit the charges to ensure reasonableness, fairness and transparency in pricing.Also, fraud victims will receive succour from another directive requiring banks to formulate a 'zero liability' policy for customers in cases where negligence cannot be established.

 

Interest rates on credit card balances vary from 15% per annum for good customers who pay minimum amount due in time and 42% per annum for those who fail to make any payment.Since these are unsecured personal loans, there is no cap on the amount of interest that they charge.

Maharastra to lower power tariffs for industries

In a bid to attract investments, the Maharashtra government is coming up with a plan to rationalise power tariff exclusively for industry consumer.According to chief minister Devendra Fadnavis, the industrial consumers are paying "significantly high" , Chief Minister Devendra Fadnavis said on Thursday.

 

Currently, out of the over 2.20 crore consumers of the state utility Mahavitaran, 1.99 per cent or about 4.38 lakh are industrial customers with consumption of 31,352.44 million units. Mahavitaran charges them Rs 8-8.50 per unit."Currently, the tariffs for industrial consumers are significantly high. If we have to attract industries to the state, we will have to develop a mechanism to rationalise these tariffs," Fadnavis said.

 

The state provides subsidy to Mahavitaran which in-turn subsidises its low-end consumers, including farmers, who form a large part of its customer base. Currently, Mahavitaran has 1.62 crore residential and 36.67 lakh agricultural consumers, among others.However, he refused to fix the amount of tariff reduction, however, the Chief Minister said, “We are preparing a road-map to rationalise the power tariffs.”The government is planing to visit MERC with a proposal to reduce the tariff, without going to the problem of offering subsidy, he pointed out.

January retail inflation raises to 5.1percent

January retail inflation raised after the base year changed but hovered within the central bank's comfort levels. While industrial output growth remained sluggish in December, thus interest rate cut hopes still alive.Government on Thursday showed consumer prices rose 5.1% in January, higher than the previous month's 4.3% after the base year was changed from 2010 to 2012."Despite the rise in inflation in January, inflation remains in the comfortable zone. We expect RBI to deliver rate cuts in the range of 50-75 bps in the next fiscal," said ratings agency Crisil."We expect inflation to average at 6.5% for this fiscal. For 2015-16, we expect inflation to average at 5.8%, supported by lower oil prices, normal monsoons, pro-active steps by the government and better monetary and fiscal coordination."