Govt favouring GAIL: Reliance

Is the government being partial in its decision making when it comes to private companies than its own public sector undertakings?

Billionaire Mukesh Ambani’s Reliance Logistics (Relog) Infrastructure Ltd has complained to the petroleum and natural gas minister, Veerappa Moily
for “being treated differently” by his ministry that was “applying different standards” for his private company vis-à-vis state-owned GAIL, which is India’s leading gas pipeline construction and transmission company.

In a recent letter of January 8 to Moily, Relog said that the petroleum ministry had, citing in-ordinate delays, cancelled the permits of Relog to lay four cross-country natural gas pipelines traversing 2,175 kms while overlooking the same delays by GAIL in implementing the large pipeline project from Jagdishpur to Haldia.

Relog said in its letter: “GAIL’s Jagdishpur-Haldia pipeline, whose progress has been far behind Relog’s pipelines, appears to be treated differently by the petroleum and natural gas ministry.”

Relog said the authorisation to GAIL was given along with its four pipelines in 2007 on similar terms and conditions.

It alleged that during various joint review meetings, progress on Jagdishpur-Haldia Pipeline was reported to be substantially lagging behind the Relog pipelines.

“While GAIL has not made any significant progress on Jagdishpur-Haldia pipeline compared to Relog pipelines, their pipeline has not been rescinded,” the letter claimed.

It said that though Relog has completed all pre-project activities for its pipelines, they have been cancelled.

“On the other hand,  (Gail’s) Jagdishpur-Haldia pipeline appears to be being treated differently,” the letter said.

FIPB clears IKEA proposal, all set to make India entry

The Foreign Investment Promotion Board on Monday cleared the Rs. 10,500 crore proposal by Swedish furniture major IKEA to set up single-brand retail stores with cafeterias across the country.

The proposal was hanging in balance since December 31 when it was removed from the
agenda of the board meeting for want of more information.

The FIPB had on November 20 given part approval to the company's proposal allowing it to invest R4,200 crore to set up stores for only some of the 33 product categories withholding permission to sell items such as food, textile items and office supplies.

Monday's approval will allow IKEA to sell all its wares as well as set up cafeterias.

“This is a positive development. The government is committed to play a constructive role in encouraging FDI specially in areas, which create job and provide technological advancement,” said Union commerce minister Anand Sharma.

"Globally IKEA has a business model which integrates in its embrace SMEs and domestic industry making them the part of global value chain."

Following the part approval,the company made a representation to the (DIPP), which forwarded the request to FIPB seeking a review of its decision.

IKEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single-brand retail trading in India through a 100% subsidiary

The proposal will now be sent to the cabinet for approval before IKEA will be allowed to set shop.

The company’s entry is being closely watched as an example for other global retailers on how to tackle India's complex rules and bureaucracy.

IKEA hopes to open at least 25 of its stores in India through a 100% owned unit, Ingka Holding, as part of a wider push into emerging markets such as China and Russia.

Banking outlook negative on higher NPAs: Moody's

Global ratings agency Moody's today said it has a "negative" outlook on the country's banking system due to concerns over asset quality and the high interest rates.   "In India, impaired loans are yet to peak among public sector banks," Moody's said in its Asia-Pacific
Banking Outlook.

The agency further said though the government is "likely to remain supportive", options for the Reserve Bank to slash lending rates are limited due to high inflation and the "modest fiscal capacity".

RBI has not given into the growing pressures to ease its elevated interest rate, which is one of the highest in the world and the highest amongst the BRIC nations, citing the high inflation and the government's inability to reign-in the fiscal deficit at desired levels.

However, the Moody's report said interest rates are likely to fall during 2013 but still they will remain higher than the rest of Asia.

Noting that 94% of the banks it rates in Asia carry stable outlooks on their deposit ratings, Moody's said the negative outlook on specific banks mostly relate to India.

On the compliance with the stricter Basel-III regulation, which require higher capital reserves, it said that most of the Asian banks comply with the requirements but the pressure to compete with peers from the Western countries facing delays in execution may have forced countries like India to delay implementation.

The Reserve Bank had delayed the implementation of Basel III by three months to April 2013, from January 2013 earlier.

The BSE's banking index Bankex slipped 0.21% to 14,520 points as against the 0.31% gains on the Sensex.

IndiGo to launch daily flights to Dubai from March

Budget carrier IndiGo will launch daily flights on the Thiruvananthapuram-Dubai route from March 1 this year. The airline would be offering introductory all-inclusive return fare of Rs. 11,998 on the new non-stop flight, IndiGo president Aditya Ghosh said in a release. "We are
introducing the flight considering the strong trade and tourism ties between the southern region of India and Dubai and the requirement of travellers for a low-fare Indian airline in the sector," he said.

A second daily and non-stop flight between Mumbai and Dubai is also being launched.

IndiGo is positioned as the fastest growing airline in India with 61 brand new Airbus A 320-Es and is operating 377 daily flights connecting 33 destinations, he said.

The Thiruvananthapuram-Dubai flight would leave at 1820 hrs and reach Dubai at 2115 hrs. In the return trip, it would leave Dubai at 1125 hrs and reach here at 1715 hrs, the release added.







 

Boeing halts delivery of Dreamliners

Grounded: An All Nippon Airways Boeing 787 Dreamliner
 makes an emergency landing in Japan. Photo: Getty Images

US aerospace giant Boeing has halted deliveries of its 787 Dreamliner but says it will continue to build the aircraft while safety experts examine its battery and electrical systems.

The announcement capped a week in which all 50 787s in service around the world were grounded on orders from multiple aviation authorities to investigate the cause of two incidents, including a fire, linked to its batteries.

‘‘We will not deliver 787s until the FAA approves a means of compliance with their recent Airworthiness Directive concerning batteries and the approved approach has been implemented,’’ a Boeing spokesman said. ‘‘Production of 787s continues."

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Dreamliners had been flying in Chile, Ethiopia, India, Japan, Poland, Qatar and the United States until their flights were stopped after a global alert issued by the US Federal Aviation Administration.

Boeing’s chairman and chief executive Jim McNerney in a statement to employees defended his company and the aircraft against ‘‘the negative news attention over the past several days.’’

‘‘As everyone inside the company knows, nothing is more important to us than the safety of the passengers, pilots and crew members who fly aboard Boeing commercial and military aircraft,’’ he said. ‘‘We have high confidence in the safety of the 787 and stand squarely behind its integrity as the newest addition to our product family.’’

His comments came as US and Japanese experts began examining an All Nippon Airways 787 forced to make an emergency landing at Takamatsu in southwest Japan on Wednesday because of a smoke alert apparently linked to a lithium-ion battery, the plane’s main electrical power unit.

‘‘We removed the battery yesterday and are today inspecting the plane and its components, alongside the US officials,’’ said Japan Transport Safety Board spokesman Mamoru Takahashi.

A picture released by the JTSB showed scorch marks on the blue casing of the battery. Much of what looked like wiring around the eight cells of the battery - the plane’s main electrical power unit - was disfigured.

It was the second incident involving the battery, and one of several problems since the beginning of the year, including a taxiing 787 sprouting a fuel leak in Boston.

The problems have cast a cloud over the aircraft heavily dependent on pioneering electrical systems and lightweight composite materials that is meant to be Boeing’s future.

No airline has cancelled purchases for the 787, but with 850 of the ambitious $US200 million-plus aircraft on order, a fortune is at stake.

McNerney stressed that since they entered service in October 2011, 787s have completed 18,000 flights and 50,000 flight hours with no serious problems.

But US Secretary of Transportation Ray LaHood told NBC television that the 787 would have to prove itself again to US inspectors.

‘‘Those planes won’t fly until we’re 1000 per cent sure they are safe to fly,’’ said LaHood on Friday.

The focus of investigators was on batteries supplied to Boeing by Japan’s GS Yuasa through France’s Thales, two of many firms in a complex global chain of suppliers for the 787 program.

JTSB investigator Hideyo Kosugi said one theory was that there may have been insufficient protection offered by the batteries’ surrounding electrical system.

‘‘I’m sure that too much current or too-high voltage has gone to the battery,’’ Kosugi told reporters.

Read more: http://www.theage.com.au/business/world-business/boeing-halts-delivery-of-dreamliners-20130119-2d028.html#ixzz2ITJs6JhQ

Passenger records for airports

AUSTRALIA'S major airports

 experienced substantial growth in 2012,
with a record number of passengers
passing through Sydney Airport.

Sydney Airport served 36.9 million passengers in 2012, a 3.6 per cent increase on the previous year, while Melbourne Airport's passenger numbers exceeded 29 million, a 5 per cent increase on 2011.

December was Sydney's busiest month, with passenger numbers growing by 5.2 per cent.

Sydney Airport chief executive Kerrie Mather said international passenger numbers grew by 5.3 per cent and domestic over 2.7 per cent for the year.

''It was exciting to see such a significant increase in both international and domestic low-cost-carrier capacity, in particular Scoot, Jetstar and AirAsia X internationally and the expansion of domestic services by Jetstar and Tiger,'' she said.

She said the biggest international growth was from Malaysia and Singapore, with incoming passengers increasing by 59 per cent and 34 per cent respectively.

Outbound international passengers from Sydney Airport grew by 5.9 per cent for the year, while inbound international numbers increased by 4.8 per cent in 2012.

Brisbane Airport also saw a record 21.5 million passengers pass through its terminals, up 4.5 per cent on 2011.

Managing director Julieanne Alroe attributed the rise to the resources boom fuelling demand for flights to Queensland, as well as cheaper airfares.

Melbourne Airport chief executive Chris Woodruff said continuing international passenger growth and increased capacity on domestic services had led to the number of passengers reaching 29,297,387 in the Victorian capital in 2012.

There had been an increase of 6 per cent in international passengers compared to 2011, with strong growth from New Zealand, Hong Kong, China, India, Sri Lanka and Vietnam.

''During the year, airlines introduced significant capacity increases on domestic routes which stimulated demand,'' Mr Woodruff said.

Read more: http://www.theage.com.au/business/passenger-records-for-airports-20130118-2cyug.html#ixzz2ITOBxiY1

Ruchi Soya: Dinner Meet

Featuring among the top five FMCG players in India, with a turnover crossing Rs. 13,000 crores, Ruchi Soya Industries Limited is the flagship company of Ruchi Group of Industries. Besides being a leading manufacturer of high quality edible oils, vanaspati, bakery fats and soya foods, Ruchi is also the highest exporter of soya meal and lecithin from India. Nutrela (soya chunks, granules and soya flour) is the largest selling soya foods brand in the country.