General Affairs
CBSE Says Fresh Date For Class 10 Maths Paper "Before End Of The Week"
-
The Central Board of Secondary Education (CBSE) will announce fresh dates for reexamination of the Class 10 Mathematics paper before the end of the week, the board said. The date will be announced "after taking into consideration the dates of other professional exams and logistics."
The board said there will be a re-test of the Class 12 Economics paper as well and CBSE is looking into the "circumstances" that led the paper leak.
On Wednesday, the Delhi Police set up a special investigating team, led by RP Upadhaya, to investigate the leak of two question papers cancelled by the CBSE. Police started its investigation with the questioning of 25 people, mostly students, who had been able to access the handwritten question papers.
The police are trying to trace the source of the leaked papers that have allegedly been circulated over WhatsApp, the encrypted messenger service.
We have received snapshots of the handwritten paper circulated through WhatsApp from the complainant. We are trying to ascertain the source of these messages. Since WhatsApp messages are end-to-end encrypted, we are facing a bit of difficulty in tracing the source," said an officer according to news agency Press Trust of India.
The cases were registered on charges of criminal breach of trust, cheating and criminal conspiracy.
Union Education Minister Prakash Javadekar has said that "2-3 papers" had leaked but promised parents and students that the authorities had filed a police complaint right away. The minister underlined that the leaks appeared to be a localised problem limited just to Delhi.
The board said there will be a re-test of the Class 12 Economics paper as well and CBSE is looking into the "circumstances" that led the paper leak.
On Wednesday, the Delhi Police set up a special investigating team, led by RP Upadhaya, to investigate the leak of two question papers cancelled by the CBSE. Police started its investigation with the questioning of 25 people, mostly students, who had been able to access the handwritten question papers.
The police are trying to trace the source of the leaked papers that have allegedly been circulated over WhatsApp, the encrypted messenger service.
We have received snapshots of the handwritten paper circulated through WhatsApp from the complainant. We are trying to ascertain the source of these messages. Since WhatsApp messages are end-to-end encrypted, we are facing a bit of difficulty in tracing the source," said an officer according to news agency Press Trust of India.
The cases were registered on charges of criminal breach of trust, cheating and criminal conspiracy.
Union Education Minister Prakash Javadekar has said that "2-3 papers" had leaked but promised parents and students that the authorities had filed a police complaint right away. The minister underlined that the leaks appeared to be a localised problem limited just to Delhi.
In Landmark Ruling, Top Court Sets 6-Month Expiry Date For Stay Orders
-
Stay orders by courts, often blamed for slowing down the judicial process, will come with a six-month shelf life, the Supreme Court ruled on Wednesday in a verdict that could revive thousands of cases stalled for years on one ground or the other.
The top court ordered that all cases held up due to a stay order will automatically restart at the end of six months from Wednesday. In exceptional cases if the judge thinks that the stay order should continue for some more time, the judge would have outline the reasons in a written order.
The six-month rule would also apply to all stay orders granted by courts from now.
"In cases where stay is granted in future, the same will end on expiry of six months from the date of such order unless similar extension is granted by a speaking order. The speaking order must show that the case was of such exceptional nature that continuing the stay was more important than having the trial finalized," a three-judge bench of the Supreme Court ordered.
The judges ordered that a copy of this decision be sent to all high courts for compliance.
A study commissioned by the law ministry in 2016 was reported to have concluded that stay on proceedings by the high courts and the Supreme Court delayed trials by up to 6.5 years.
Wednesday's verdict was delivered in a case registered by the CBI nearly two decades back for a scam in building roads in the national capital. When the trial court formally charged the accused, they had gone to the high court which had stayed the proceedings till it decided the main petition. In 2013, the case reached the Supreme Court.
"Remedy is required not only for corruption cases but for all civil and criminal cases where on account of stay, civil and criminal proceedings are held up," Justices Adarsh Kumar Goel and Navin Sinha ruled in their verdict. Justice RF Nariman, by a separate verdict, agreed with the conclusion reached the two judges on the petition at hand but did not refer to the six-month deadline.
The top court ordered that all cases held up due to a stay order will automatically restart at the end of six months from Wednesday. In exceptional cases if the judge thinks that the stay order should continue for some more time, the judge would have outline the reasons in a written order.
The six-month rule would also apply to all stay orders granted by courts from now.
"In cases where stay is granted in future, the same will end on expiry of six months from the date of such order unless similar extension is granted by a speaking order. The speaking order must show that the case was of such exceptional nature that continuing the stay was more important than having the trial finalized," a three-judge bench of the Supreme Court ordered.
The judges ordered that a copy of this decision be sent to all high courts for compliance.
A study commissioned by the law ministry in 2016 was reported to have concluded that stay on proceedings by the high courts and the Supreme Court delayed trials by up to 6.5 years.
Wednesday's verdict was delivered in a case registered by the CBI nearly two decades back for a scam in building roads in the national capital. When the trial court formally charged the accused, they had gone to the high court which had stayed the proceedings till it decided the main petition. In 2013, the case reached the Supreme Court.
"Remedy is required not only for corruption cases but for all civil and criminal cases where on account of stay, civil and criminal proceedings are held up," Justices Adarsh Kumar Goel and Navin Sinha ruled in their verdict. Justice RF Nariman, by a separate verdict, agreed with the conclusion reached the two judges on the petition at hand but did not refer to the six-month deadline.
Farmers Prepare Bills, Lawmakers To Introduce In Parliament
-
A group of farmer unions on Wednesday decided to present two Bills - intended to ensure remunerative prices to agriculture produce and loan waiver to distressed farmers - in Parliament and efforts will be made to pass them at least in the Rajya Sabha.
The Bills are 'The Freedom from Indebtedness Bill 2018' and 'The Farmers' Right to Guaranteed Remunerative Minimum Support Prices for Agricultural Commodities Bill 2018', a statement said.
Lawmakers Raju Shetty and K.K. Ragesh will introduce these bills in Lok Sabha and Rajya Sabha, respectively, as Private members' Bills.
All India Kisan Sangharsh Coordination Committee (AIKSCC) held in a Round Table on Tuesday to create legal entitlements for farmers on issues of indebtedness and lack of remunerative prices.
The Bills are 'The Freedom from Indebtedness Bill 2018' and 'The Farmers' Right to Guaranteed Remunerative Minimum Support Prices for Agricultural Commodities Bill 2018', a statement said.
Lawmakers Raju Shetty and K.K. Ragesh will introduce these bills in Lok Sabha and Rajya Sabha, respectively, as Private members' Bills.
All India Kisan Sangharsh Coordination Committee (AIKSCC) held in a Round Table on Tuesday to create legal entitlements for farmers on issues of indebtedness and lack of remunerative prices.
Election Commission To Formulate Code For Partner Social Media Platforms
-
Social media platforms which collaborate with the Election Commission will now have to follow a 'code of conduct' to ensure that their user data remains protected from manipulation which could adversely affect elections.
Highly-placed sources in the poll panel said today that the body's social media unit met yesterday and decided to draft the 'code of conduct'.
The platforms which do not follow the proposed code will not get to partner with the poll panel.
The decision was taken in the aftermath of the Cambridge Analytica episode.
Observing that utilisation of social media cannot be stopped due to instances of "aberrations", Chief Election Commissioner OP Rawat had said yesterday that Facebook would remain the poll panel's social media partner during the Karnataka assembly elections.
He also said the social media cell of the Election Commission would go into the issue of App of politicians and political parties sharing user data without the users' consent.
"Any aberration won't stop the use of modern technology... banks frauds have taken place, but we don't stop banking," Mr Rawat told a press conference while announcing the Karnataka assembly poll schedule.
He was asked if the Facebook would continue to be the poll panel's social media partner in the wake of reports that its user data had been harvested by a company without the users' consent.
Mr Rawat said that the social media is a reality and the election commission will take all precautions at its commend, to prevent episodes which adversely affect Indian elections.
The Facebook data scandal erupted after a whistleblower revealed that Cambridge Analytica, a data firm with ties to Donald Trump's 2016 campaign, accessed personal data from 50 million users of the website without their knowledge, and might have kept that data even after the social media giant told the company to delete it.
Highly-placed sources in the poll panel said today that the body's social media unit met yesterday and decided to draft the 'code of conduct'.
The platforms which do not follow the proposed code will not get to partner with the poll panel.
The decision was taken in the aftermath of the Cambridge Analytica episode.
Observing that utilisation of social media cannot be stopped due to instances of "aberrations", Chief Election Commissioner OP Rawat had said yesterday that Facebook would remain the poll panel's social media partner during the Karnataka assembly elections.
He also said the social media cell of the Election Commission would go into the issue of App of politicians and political parties sharing user data without the users' consent.
"Any aberration won't stop the use of modern technology... banks frauds have taken place, but we don't stop banking," Mr Rawat told a press conference while announcing the Karnataka assembly poll schedule.
He was asked if the Facebook would continue to be the poll panel's social media partner in the wake of reports that its user data had been harvested by a company without the users' consent.
Mr Rawat said that the social media is a reality and the election commission will take all precautions at its commend, to prevent episodes which adversely affect Indian elections.
The Facebook data scandal erupted after a whistleblower revealed that Cambridge Analytica, a data firm with ties to Donald Trump's 2016 campaign, accessed personal data from 50 million users of the website without their knowledge, and might have kept that data even after the social media giant told the company to delete it.
China To Resume Sharing Brahmaputra Hydrological Data With India
-
China said today it will resume sharing with India the hydrological data of the Brahmaputra river as top water resource officials of the two countries wrapped up two-day talks, the first after Beijing last year stopped providing the data crucial to predict floods.
"On the basis of humanitarian spirit and our shared will to develop bilateral ties we will continue with the cooperation on hydrological information cooperation," Chinese Foreign Ministry spokesman Lu Kang told a media briefing in Beijing.
He was responding to a question whether China will resume sharing of the hydrological data on Brahmaputra river, which Beijing suspended last year stating that it could not share it with India due to upgradation of data collection station in Tibet.
China's announcement to not to share the data came soon after the 73-day long stand-off between Indian and Chinese troops at Dokalam over Chinese military's plans to build a road close to India's Chicken Neck corridor connecting North-Eastern states.
A team of officials of India's Ministry of Water Resources held talks with their Chinese counterparts on the cooperation of trans-border rivers in the last two days at the Chinese city of Hangzhou, the first after Beijing last year stopped providing the data.
Lu said during the talks the two sides reviewed the achievements of the previous meetings as well as bilateral cooperation on emergency and response and hydrological information.
"The two sides have agreed to continue with such cooperation. On the grounds of humanitarian principles and the basis of bilateral relations China will continue with this cooperation with the Indian side on the provision of hydrological information and emergency response cooperation," Lu said.
Asked whether China would resume the data, Lu said "since you made it quite clear", China will continue with the cooperation on hydrological information cooperation.
The two-day talks of the 11th meeting of the India-China Expert Level Mechanism (ELM) on Trans-Border Rivers concluded yesterday at Hangzhou, a statement from the Indian Embassy here said today.
The Indian side was led by Teerath Singh Mehra, Commissioner (B&B), Ministry of Water Resources and the Chinese side by Yu Xingjun, Consul, Department of International Cooperation Science and Technology, Ministry of Water Resources.
The meeting which was held in a "cordial and friendly" atmosphere reviewed the progress made since the earlier meetings of the ELM and their continued cooperation on provision of hydrological information and emergency management in respect of trans-border rivers, the press release said.
The officials also reviewed the data utilisation report upon provision of hydrological information provided by China to India in flood season on Brahmaputra and Sutlej Rivers.
The institutional mechanism of the ELM was established in 2006 to discuss various issues related to trans-border rivers.
Under existing bilateral Memorandums of Understanding, China provides to India hydrological information of Brahmaputra River (Yarlong Zangbo) and Sutlej River (Langqen Zangbo) during the flood seasons.
Under the arrangement, China provides flood season data of the Brahmaputra river between May 15 and October 15 every year.
China has been building major dams on Brahmaputra river to generate hydel power. It operationalised Zangmu hydroelectric project in October, 2015 and three more are under construction.
While dams raised concerns of water shortages in India and Bangladesh, which are lower riparian states of Brahmaputra river, China said its dams were aimed at generating power and not storing water.
The data shared by upper riparian state, China, to lower riparian states, India and Bangladesh is essential every monsoon to allow anticipation of the flow of the water and take necessary measures to deal with flooding in India's north-eastern states.
"On the basis of humanitarian spirit and our shared will to develop bilateral ties we will continue with the cooperation on hydrological information cooperation," Chinese Foreign Ministry spokesman Lu Kang told a media briefing in Beijing.
He was responding to a question whether China will resume sharing of the hydrological data on Brahmaputra river, which Beijing suspended last year stating that it could not share it with India due to upgradation of data collection station in Tibet.
China's announcement to not to share the data came soon after the 73-day long stand-off between Indian and Chinese troops at Dokalam over Chinese military's plans to build a road close to India's Chicken Neck corridor connecting North-Eastern states.
A team of officials of India's Ministry of Water Resources held talks with their Chinese counterparts on the cooperation of trans-border rivers in the last two days at the Chinese city of Hangzhou, the first after Beijing last year stopped providing the data.
Lu said during the talks the two sides reviewed the achievements of the previous meetings as well as bilateral cooperation on emergency and response and hydrological information.
"The two sides have agreed to continue with such cooperation. On the grounds of humanitarian principles and the basis of bilateral relations China will continue with this cooperation with the Indian side on the provision of hydrological information and emergency response cooperation," Lu said.
Asked whether China would resume the data, Lu said "since you made it quite clear", China will continue with the cooperation on hydrological information cooperation.
The two-day talks of the 11th meeting of the India-China Expert Level Mechanism (ELM) on Trans-Border Rivers concluded yesterday at Hangzhou, a statement from the Indian Embassy here said today.
The Indian side was led by Teerath Singh Mehra, Commissioner (B&B), Ministry of Water Resources and the Chinese side by Yu Xingjun, Consul, Department of International Cooperation Science and Technology, Ministry of Water Resources.
The meeting which was held in a "cordial and friendly" atmosphere reviewed the progress made since the earlier meetings of the ELM and their continued cooperation on provision of hydrological information and emergency management in respect of trans-border rivers, the press release said.
The officials also reviewed the data utilisation report upon provision of hydrological information provided by China to India in flood season on Brahmaputra and Sutlej Rivers.
The institutional mechanism of the ELM was established in 2006 to discuss various issues related to trans-border rivers.
Under existing bilateral Memorandums of Understanding, China provides to India hydrological information of Brahmaputra River (Yarlong Zangbo) and Sutlej River (Langqen Zangbo) during the flood seasons.
Under the arrangement, China provides flood season data of the Brahmaputra river between May 15 and October 15 every year.
China has been building major dams on Brahmaputra river to generate hydel power. It operationalised Zangmu hydroelectric project in October, 2015 and three more are under construction.
While dams raised concerns of water shortages in India and Bangladesh, which are lower riparian states of Brahmaputra river, China said its dams were aimed at generating power and not storing water.
The data shared by upper riparian state, China, to lower riparian states, India and Bangladesh is essential every monsoon to allow anticipation of the flow of the water and take necessary measures to deal with flooding in India's north-eastern states.
Business Affairs
L'affaire ICICI Bank: Board ducks key questions
-
Remarkable coincidence, or something sinister? That's the question posed by L'affaire Chanda Kochhar, the celebrated managing director & CEO of ICICI Bank. But by issuing a well-couched statement, ICICI Bank has not left people any wiser. In fact, barring denying any wrongdoing and reiterating its confidence in Kochhar, the 3-page statement has failed to answer any of the grave allegations leveled by investor Arvind Gupta against Kochhar and her husband Deepak Kochhar for "amassing wrongful personal gains deceiving Stakeholders, Shareholders, Public / Private Sector Banks and Indian Regulatory Agencies for unjust and illegal enrichment through corrupt banking practices".
It was Gupta's 8-page letter (dated 15 March, 2016) with those allegations addressed to prime minister Narendra Modi and copied to the finance minister, RBI Governor, Sebi chairman, Enforcement Directorate and CBI chief, besides others, that led to sotto voce initially but has caused a severe social media frenzy in the past few weeks. That forced ICICI Bank to issue a statement defending Kochhar: "The Board has full confidence and reposes full faith in the Bank's MD & CEO Ms Chanda Kochhar".
It was Gupta's 8-page letter (dated 15 March, 2016) with those allegations addressed to prime minister Narendra Modi and copied to the finance minister, RBI Governor, Sebi chairman, Enforcement Directorate and CBI chief, besides others, that led to sotto voce initially but has caused a severe social media frenzy in the past few weeks. That forced ICICI Bank to issue a statement defending Kochhar: "The Board has full confidence and reposes full faith in the Bank's MD & CEO Ms Chanda Kochhar".
Lemon Tree Hotels IPO subscribed 1.19 times on last day
-
The initial public offer (IPO) of hospitality chain Lemon Tree Hotels was subscribed 1.19 times on the last day of bidding on Wednesday. The IPO of the mid-priced hotel chain managed to receive full subscription in a holiday truncated week (Thursday and Friday) marked by volatility due to weak global markets and March derivatives expiry. The IPO saw success when another big ticket issue (Rs 4,017 crore) of ICICI Securities saw its size cut by Rs 500 crore and managed to garner just 88% of the subscription. Its parent ICICI Bank said the bank collected Rs 3,500 crore from the IPO.
Meanwhile, the Rs 1,038.68-crore Lemon Tree IPO received bids for 15,48,77,925 shares against the total issue size of 12,98,35,580 shares, data available with the NSE showed.
The portion meant for qualified institutional buyers (QIBs) was subscribed 3.89 times, non-institutional investors 12 per cent and retail investors 12 per cent, merchant banking sources said.
Meanwhile, the Rs 1,038.68-crore Lemon Tree IPO received bids for 15,48,77,925 shares against the total issue size of 12,98,35,580 shares, data available with the NSE showed.
The portion meant for qualified institutional buyers (QIBs) was subscribed 3.89 times, non-institutional investors 12 per cent and retail investors 12 per cent, merchant banking sources said.
PNB to honour LoUs worth Rs 6,500 crore issued to 7 banks in favour of Nirav Modi
-
Punjab National Bank (PNB) today decided to honour LoUs worth Rs 6,500 crore, issued fraudulently to 7 lenders in favour of Nirav Modi and associates in connivance with bank officials.
Putting an end to confusion over the payment obligation towards other lenders, PNB also assured that it will honour all subsequent maturing LoUs and FLCs as and when they are due.
The decision was taken by the board for the payment related to Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) issued by the bank which mature on or before March 31, 2018, PNB said in a statement.
"This will lead to settling of LoUs worth Rs 6,500 crore with 7 banks in relation to the recent fraud that was reported by the bank," it said.
The statement reiterated that when the fraud was detected and reported to the authorities by PNB, the bank had communicated that it has a strong balance sheet to meet any contingent liabilities upon the bank.
This measure will ensure that India's banking system at large has the least possible disruption owing to the unfortunate fraud and banking operations will continue to function smoothly, it said after the board meeting.
In essence, PNB stood by its commitment to honour all bonafide LoUs. This decision of the board sends out a strong message that PNB takes its obligations seriously but does it in a manner that is compliant with the law," the bank chairman Sunil Mehta said.
"PNB board's decision will help restore confidence and stability in the larger banking system. We thank all stakeholders who have supported us during this difficult time, it said.
Billionaire jeweller designer Modi and his uncle Mehul Choksi in connivance with certain bank officials allegedly cheated the PNB of Rs 12,968 crore through fraudulent Letters of Undertaking (LoUs).
A Mumbai branch of PNB had issued as many as 1,590 LoUs fraudulently for the group of companies belonging to Nirav Modi since March 2011.
Different investigating agencies, including CBI and Enforcement Directorate, are probing the fraud, dubbed as the biggest banking scam in the country.
The bank's board also reviewed the progress made on strengthening the SWIFT operating environment in the bank, it said.
The first phase of SWIFT integration with CBS will become operational from the first working day of the new financial year for the bank, April 3 2018. The complete integration will be achieved ahead of the April 30th deadline stipulated by the Reserve Bank of India for all banks, it added.
The successful integration will be achieved in a record time because of the upgradation of the bank's Core Banking System (CBS) to Finacle 10 across the 7,000 PNB branches. This was completed as of January 26 this year.
One of the strong features of this version is that it integrates seamlessly with multiple other systems within the bank. The upgradation from Finacle 7 to Finacle 10 and subsequent integration with the SWIFT link ensures a robust architecture and operational control to minimize any lapses and weaknesses in the future.
It further said that "the board is taking every possible step to restore morale, motivation and pride back to all its 70,000 employees".
The bank is not afraid of taking tough action where required, it said, adding that it is committed to building a strong partnership for customer service and excellence.
Putting an end to confusion over the payment obligation towards other lenders, PNB also assured that it will honour all subsequent maturing LoUs and FLCs as and when they are due.
The decision was taken by the board for the payment related to Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) issued by the bank which mature on or before March 31, 2018, PNB said in a statement.
"This will lead to settling of LoUs worth Rs 6,500 crore with 7 banks in relation to the recent fraud that was reported by the bank," it said.
The statement reiterated that when the fraud was detected and reported to the authorities by PNB, the bank had communicated that it has a strong balance sheet to meet any contingent liabilities upon the bank.
This measure will ensure that India's banking system at large has the least possible disruption owing to the unfortunate fraud and banking operations will continue to function smoothly, it said after the board meeting.
In essence, PNB stood by its commitment to honour all bonafide LoUs. This decision of the board sends out a strong message that PNB takes its obligations seriously but does it in a manner that is compliant with the law," the bank chairman Sunil Mehta said.
"PNB board's decision will help restore confidence and stability in the larger banking system. We thank all stakeholders who have supported us during this difficult time, it said.
Billionaire jeweller designer Modi and his uncle Mehul Choksi in connivance with certain bank officials allegedly cheated the PNB of Rs 12,968 crore through fraudulent Letters of Undertaking (LoUs).
A Mumbai branch of PNB had issued as many as 1,590 LoUs fraudulently for the group of companies belonging to Nirav Modi since March 2011.
Different investigating agencies, including CBI and Enforcement Directorate, are probing the fraud, dubbed as the biggest banking scam in the country.
The bank's board also reviewed the progress made on strengthening the SWIFT operating environment in the bank, it said.
The first phase of SWIFT integration with CBS will become operational from the first working day of the new financial year for the bank, April 3 2018. The complete integration will be achieved ahead of the April 30th deadline stipulated by the Reserve Bank of India for all banks, it added.
The successful integration will be achieved in a record time because of the upgradation of the bank's Core Banking System (CBS) to Finacle 10 across the 7,000 PNB branches. This was completed as of January 26 this year.
One of the strong features of this version is that it integrates seamlessly with multiple other systems within the bank. The upgradation from Finacle 7 to Finacle 10 and subsequent integration with the SWIFT link ensures a robust architecture and operational control to minimize any lapses and weaknesses in the future.
It further said that "the board is taking every possible step to restore morale, motivation and pride back to all its 70,000 employees".
The bank is not afraid of taking tough action where required, it said, adding that it is committed to building a strong partnership for customer service and excellence.
Government seeks bids to sell 76% stake in Air India, transfer management control to buyer
-
The government has invited bids for the disinvestment process of the state-owned national carrier Air India. In the preliminary information memorandum about the divestment process, government has invited Expressions of Interest for sale of 76 per cent stake in Air India as well as the transfer of management control.
The Civil Aviation Ministry has asked for Expression of Interest (EoI) for selling its shares in the debt-laden carrier and two of its subsidiaries. The memorandum also invited bids for sale of 50 percent shares India holds in Air India SATS Airport Services. It is a joint venture between the debt-laden Indian carrier and Singapore Airport Terminal Services. The divestment process will also include Air India Express, the completely-owned international arm of Air India. Interested bidders could furnish expressions of interest by May 14.
Professional services firm Ernst & Young LLP India has been appointed as transaction adviser for the strategic disinvestment process. As per the memorandum, Air India management or employees can either participate directly in the bidding process or form a consortium to do so. The disinvestment process will be completed by competitive bidding, which is expected to be over by December this year.
The national carrier is staying afloat on taxpayers' money under the bailout package approved by the previous UPA government in 2012. As of now, Air India has a total debt of Rs 52,000 crore to its name, out of which, Rs 33,000 crore is due to working capital loans. This figure is expected to rise by another Rs 3,500 crore by the end of this financial year.
The entity that acquires Air India will bear less than half out of the total debt borne by Air India. All non-core assets, like offices, furniture and the kind, will become part of the special purpose vehicle instead of being sold.
The government has stipulated that entities planning to participate in the Air India disinvestment process should have a minimum aggregate net worth of Rs 5,000 crore. Domestic airlines with zero or negative net worth can participate in the bidding process by forming consortiums which fulfill the prescribed criteria. The minimum net criteria for companies and consortiums has been laid down to keep non-serious and fly-by-night operators away from the bidding process.
In June 2017, the Cabinet Committee on Economic Affairs (CCEA) gave in-principle nod to the strategic disinvestment of the airline, which has a debt burden of over Rs 50,000 crore. Subsequent to the decision, the Air India Specific Alternative Mechanism (AISAM), headed by Finance Minister Arun Jaitley, was set up to decide on specific issues.
Tata Group, which once owned Air India, could reportedly go with Singapore Airlines to bid for Air India. Singapore Airlines in partnership with the salt-to-steel conglomerate operates Vistara Airlines. Talking to Business Today recently, Singapore Airlines' India general manager David Lim said that they are keeping an open mind on the deal. Jet Airways may also go with Air France-KLM to participate in the Air India disinvestment.
The Civil Aviation Ministry has asked for Expression of Interest (EoI) for selling its shares in the debt-laden carrier and two of its subsidiaries. The memorandum also invited bids for sale of 50 percent shares India holds in Air India SATS Airport Services. It is a joint venture between the debt-laden Indian carrier and Singapore Airport Terminal Services. The divestment process will also include Air India Express, the completely-owned international arm of Air India. Interested bidders could furnish expressions of interest by May 14.
Professional services firm Ernst & Young LLP India has been appointed as transaction adviser for the strategic disinvestment process. As per the memorandum, Air India management or employees can either participate directly in the bidding process or form a consortium to do so. The disinvestment process will be completed by competitive bidding, which is expected to be over by December this year.
The national carrier is staying afloat on taxpayers' money under the bailout package approved by the previous UPA government in 2012. As of now, Air India has a total debt of Rs 52,000 crore to its name, out of which, Rs 33,000 crore is due to working capital loans. This figure is expected to rise by another Rs 3,500 crore by the end of this financial year.
The entity that acquires Air India will bear less than half out of the total debt borne by Air India. All non-core assets, like offices, furniture and the kind, will become part of the special purpose vehicle instead of being sold.
The government has stipulated that entities planning to participate in the Air India disinvestment process should have a minimum aggregate net worth of Rs 5,000 crore. Domestic airlines with zero or negative net worth can participate in the bidding process by forming consortiums which fulfill the prescribed criteria. The minimum net criteria for companies and consortiums has been laid down to keep non-serious and fly-by-night operators away from the bidding process.
In June 2017, the Cabinet Committee on Economic Affairs (CCEA) gave in-principle nod to the strategic disinvestment of the airline, which has a debt burden of over Rs 50,000 crore. Subsequent to the decision, the Air India Specific Alternative Mechanism (AISAM), headed by Finance Minister Arun Jaitley, was set up to decide on specific issues.
Tata Group, which once owned Air India, could reportedly go with Singapore Airlines to bid for Air India. Singapore Airlines in partnership with the salt-to-steel conglomerate operates Vistara Airlines. Talking to Business Today recently, Singapore Airlines' India general manager David Lim said that they are keeping an open mind on the deal. Jet Airways may also go with Air France-KLM to participate in the Air India disinvestment.
Sensex closes 205 points lower at 32,968, Nifty holds 10,100 amid March derivatives expiry, weak global markets
-
The Sensex and Nifty closed lower on the last trading day of the current fiscal amid expiry of March derivatives contracts. A weak closing in Asian and US markets also hit sentiment on the Dalal Street. Indian markets will remain closed on Thursday and Friday on account of Mahavir Jayanti and Good Friday. While the Sensex closed 205 points or 0.62% lower at 32,968 level, the Nifty fell 70 points to 10,113 points.
Metal and banking stocks led the losses with BSE metal index and bankex falling 2.04% ( 276 points) and 0.65% (176 points), respectively.
PNB was the top loser on BSE Bankex falling 3.83%. ICICI Bank (1.94%), Federal Bank (1.81%) and SBI (1.48%) were the other losers on the index. All BSE sectoral indexes except consumer durables and oil and gas indexes closed in the red , signalling weakness in the market.
Karthikraj Lakshmanan, Senior Fund Manager-Equities at BNP Paribas Mutual Fund said, "Expiry of March derivatives contracts coupled with the last day of the financial year lent volatility to the markets and kept investors on their toes. Key benchmark indices started the day on a negative note amid weakness in global stocks and extended losses to finally close the day lower. Tech stocks in the US continued to be weighed down by the furore created over the use of social media data by a leading data analytics firm. Both the benchmark Sensex and the Nifty lost over 0.50%, for the day. All the sectoral indices on the National Stock Exchange (NSE) traded in the red with metals and PSU banking stocks succumbing to strong selling pressure."
On the Sensex, Tata Steel (3.25%), Bharti Airtel (3.05%) and Adani Ports (2.93%) were top losers.
Wipro (3.27%), Coal India (2.94%) and Hero MotoCorp (2.30%) were the top gainers.
Top BSE losers were Kwality Ltd (19.96%), Delta Corp (16.06%) and Fortis Healthcare (13.37%).
The Fortis Healthcare stock closed lower on concerns over valuation of a demerger of its hospital business to Manipal Hospitals and TPG Capital, creating the largest provider of healthcare services in India by revenue.
Sameet Chavan, chief analyst, technical and derivatives at Angel Broking said with a near term view, the tide has certainly turned lower post the union budget and is likely to continue for some time as well. For the coming week, 10230 - 10350 would be seen as a strong resistance zone; whereas, on the lower side, 10049 followed by 9951 would act as a crucial support zone. As long as Nifty remains within this range of 10230 - 9951, we expect the consolidation to continue, during which lot of individual stocks would provide better trading opportunities.
Market breadth was negative with 924 stocks closing higher against 1713 ending lower on the BSE.
Global markets
Shares fell in Europe and Asia on Wednesday as tech stocks extended losses following sell-offs of their US peers overnight. Investors are selling technology-related shares on concern governments might tighten scrutiny over Facebook after it was revealed that users' data was shared with a consulting firm affiliated with President Donald Trump.
Britain's FTSE 100 dropped 1 percent to 6,930.51. France's CAC 40 slid 1.4 percent to 5,043.96 and Germany's DAX lost 1.6 percent to 11,784.17. Futures augured weak starts on Wall Street. Dow futures fell 0.3 percent while S&P futures also retreated 0.3 percent.
Japan's Nikkei 225 sank 1.3 percent to 21,031.31 and South Korea's Kospi slid 1.3 percent to 2,419.29. Hong Kong's Hang Seng index sank 2.5 percent to 30,022.53 while China's Shanghai Composite Index dropped 1.4 percent to 3,122.29. Australia's S&P/ASX 200 retreated 0.7 percent to 5,789.50. Stocks in Taiwan, Singapore and other Southeast Asian countries also fell.
Metal and banking stocks led the losses with BSE metal index and bankex falling 2.04% ( 276 points) and 0.65% (176 points), respectively.
PNB was the top loser on BSE Bankex falling 3.83%. ICICI Bank (1.94%), Federal Bank (1.81%) and SBI (1.48%) were the other losers on the index. All BSE sectoral indexes except consumer durables and oil and gas indexes closed in the red , signalling weakness in the market.
Karthikraj Lakshmanan, Senior Fund Manager-Equities at BNP Paribas Mutual Fund said, "Expiry of March derivatives contracts coupled with the last day of the financial year lent volatility to the markets and kept investors on their toes. Key benchmark indices started the day on a negative note amid weakness in global stocks and extended losses to finally close the day lower. Tech stocks in the US continued to be weighed down by the furore created over the use of social media data by a leading data analytics firm. Both the benchmark Sensex and the Nifty lost over 0.50%, for the day. All the sectoral indices on the National Stock Exchange (NSE) traded in the red with metals and PSU banking stocks succumbing to strong selling pressure."
On the Sensex, Tata Steel (3.25%), Bharti Airtel (3.05%) and Adani Ports (2.93%) were top losers.
Wipro (3.27%), Coal India (2.94%) and Hero MotoCorp (2.30%) were the top gainers.
Top BSE losers were Kwality Ltd (19.96%), Delta Corp (16.06%) and Fortis Healthcare (13.37%).
The Fortis Healthcare stock closed lower on concerns over valuation of a demerger of its hospital business to Manipal Hospitals and TPG Capital, creating the largest provider of healthcare services in India by revenue.
Sameet Chavan, chief analyst, technical and derivatives at Angel Broking said with a near term view, the tide has certainly turned lower post the union budget and is likely to continue for some time as well. For the coming week, 10230 - 10350 would be seen as a strong resistance zone; whereas, on the lower side, 10049 followed by 9951 would act as a crucial support zone. As long as Nifty remains within this range of 10230 - 9951, we expect the consolidation to continue, during which lot of individual stocks would provide better trading opportunities.
Market breadth was negative with 924 stocks closing higher against 1713 ending lower on the BSE.
Global markets
Shares fell in Europe and Asia on Wednesday as tech stocks extended losses following sell-offs of their US peers overnight. Investors are selling technology-related shares on concern governments might tighten scrutiny over Facebook after it was revealed that users' data was shared with a consulting firm affiliated with President Donald Trump.
Britain's FTSE 100 dropped 1 percent to 6,930.51. France's CAC 40 slid 1.4 percent to 5,043.96 and Germany's DAX lost 1.6 percent to 11,784.17. Futures augured weak starts on Wall Street. Dow futures fell 0.3 percent while S&P futures also retreated 0.3 percent.
Japan's Nikkei 225 sank 1.3 percent to 21,031.31 and South Korea's Kospi slid 1.3 percent to 2,419.29. Hong Kong's Hang Seng index sank 2.5 percent to 30,022.53 while China's Shanghai Composite Index dropped 1.4 percent to 3,122.29. Australia's S&P/ASX 200 retreated 0.7 percent to 5,789.50. Stocks in Taiwan, Singapore and other Southeast Asian countries also fell.
General Awareness
India and its neighbourhood- relations.Permanent Indus Commission
-
Context: India and Pakistan will hold a meeting of the Permanent Indus Commission to discuss various issues under the Indus Waters Treaty.
Key facts:
This will be the 114th meeting of the Permanent Indus Commission (PIC), which should meet at least once a year as per the Indus Waters Treaty (IWT).
The meeting of the PIC is held alternately in India and Pakistan every year.
The PIC had last met in March 2017 in Islamabad.
About Indus Water Treaty:
The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank. The treaty was signed in Karachi on September 19, 1960 by Prime Minister of India Jawaharlal Nehru and President of Pakistan Ayub Khan.
According to this treaty, waters of the three western rivers (the Jhelum, the Chenab, and the Indus itself) were allocated to Pakistan, and those of the three eastern rivers (the Ravi, the Beas, and the Sutlej) were allocated to India.
The Treaty also provides arbitration mechanism to solve disputes amicably. Though Indus originates from Tibet, China has been kept out of the Treaty.
What is PIC?
Permanent Indus Commission is a bilateral commission of officials from India-Pakistan, created to implement and manage goals of Indus Waters Treaty. Under the treaty, it is required that India and Pakistan meet every financial year. The Indus Commission is the first step for conflict resolution. If an agreement cannot be reached at the Commission level, the dispute is to be referred to the two governments. If the governments too fail to reach an agreement, the Treaty provides an arbitration mechanism. The last meeting of the commission was held in July 2016.
Context: India and Pakistan will hold a meeting of the Permanent Indus Commission to discuss various issues under the Indus Waters Treaty.
Key facts:
This will be the 114th meeting of the Permanent Indus Commission (PIC), which should meet at least once a year as per the Indus Waters Treaty (IWT).
The meeting of the PIC is held alternately in India and Pakistan every year.
The PIC had last met in March 2017 in Islamabad.
About Indus Water Treaty:
The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank. The treaty was signed in Karachi on September 19, 1960 by Prime Minister of India Jawaharlal Nehru and President of Pakistan Ayub Khan.
According to this treaty, waters of the three western rivers (the Jhelum, the Chenab, and the Indus itself) were allocated to Pakistan, and those of the three eastern rivers (the Ravi, the Beas, and the Sutlej) were allocated to India.
The Treaty also provides arbitration mechanism to solve disputes amicably. Though Indus originates from Tibet, China has been kept out of the Treaty.
What is PIC?
Permanent Indus Commission is a bilateral commission of officials from India-Pakistan, created to implement and manage goals of Indus Waters Treaty. Under the treaty, it is required that India and Pakistan meet every financial year. The Indus Commission is the first step for conflict resolution. If an agreement cannot be reached at the Commission level, the dispute is to be referred to the two governments. If the governments too fail to reach an agreement, the Treaty provides an arbitration mechanism. The last meeting of the commission was held in July 2016.
Key facts:
This will be the 114th meeting of the Permanent Indus Commission (PIC), which should meet at least once a year as per the Indus Waters Treaty (IWT).
The meeting of the PIC is held alternately in India and Pakistan every year.
The PIC had last met in March 2017 in Islamabad.
About Indus Water Treaty:
The Indus Waters Treaty is a water-distribution treaty between India and Pakistan, brokered by the World Bank. The treaty was signed in Karachi on September 19, 1960 by Prime Minister of India Jawaharlal Nehru and President of Pakistan Ayub Khan.
According to this treaty, waters of the three western rivers (the Jhelum, the Chenab, and the Indus itself) were allocated to Pakistan, and those of the three eastern rivers (the Ravi, the Beas, and the Sutlej) were allocated to India.
The Treaty also provides arbitration mechanism to solve disputes amicably. Though Indus originates from Tibet, China has been kept out of the Treaty.
What is PIC?
Permanent Indus Commission is a bilateral commission of officials from India-Pakistan, created to implement and manage goals of Indus Waters Treaty. Under the treaty, it is required that India and Pakistan meet every financial year. The Indus Commission is the first step for conflict resolution. If an agreement cannot be reached at the Commission level, the dispute is to be referred to the two governments. If the governments too fail to reach an agreement, the Treaty provides an arbitration mechanism. The last meeting of the commission was held in July 2016.
No comments:
Post a Comment