General Affairs
India To Offer $3-4 Billion Development Plan For Giant Iran Gas Field: Sources
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India is set to offer a $3-4 billion development plan for the Farzad B gas field to Iran next week after Tehran reduced the scope of the project, two sources familiar with the matter said.
Relations between the two countries, which have long held deep trade ties, were strained last year after Iran sought other investors for the field and media reports suggested Tehran would award it to Russia's Gazprom.
In retaliation, India directed its state refiners to cut oil imports from Iran.
At a meeting in New Delhi in February, Iran reduced the scope of the development plan for the Farzad B field and asked India to submit a revised proposal, said the two sources, who did not wish to be identified due to the sensitivity of the matter.
New Delhi and Tehran have been trying to narrow differences over Farzad B development rights since its discovery by Indian firms led by ONGC Videsh, the foreign investment arm of Oil and Natural Gas Corp, in 2008.
Indian companies were hoping to get rights to develop the asset as India was one of the handful of nations that continued to deal with Iran during years of sanctions against the country over its nuclear programme.
The new terms confine Indian companies to just production of gas and development of the field, said the two sources.
Although a formal offer is yet to be made, sources said, the new bid would be between $3 billion and $4 billion and would not include gas processing and development of downstream projects.
"As the negotiations are still ongoing, we would not like to comment at this stage," ONGC Videsh said in response to a Reuters' email seeking comments.
At the request of Iran, Indian companies last year submitted a $11-billion development proposal that covered the development of upstream activities and downstream infrastructure.
The field is estimated to hold 22 trillion cubic feet (tcf) of reserves, of which 16 tcf are deemed recoverable.
India and Iran will discuss the revised development plan for the field next week, during Iranian oil minister Bijan Zanganeh's visit to New Delhi.
To strengthen its ties with India, Iran has offered a higher freight discount on oil sales, besides agreeing to consider India's demand for a stake in a producing field, sources told Reuters last month.
In return, India has agreed to boost oil imports from Iran, oil minister Dharmendra Pradhan said last month after a meeting with Zanganeh in Delhi.
Relations between the two countries, which have long held deep trade ties, were strained last year after Iran sought other investors for the field and media reports suggested Tehran would award it to Russia's Gazprom.
In retaliation, India directed its state refiners to cut oil imports from Iran.
At a meeting in New Delhi in February, Iran reduced the scope of the development plan for the Farzad B field and asked India to submit a revised proposal, said the two sources, who did not wish to be identified due to the sensitivity of the matter.
New Delhi and Tehran have been trying to narrow differences over Farzad B development rights since its discovery by Indian firms led by ONGC Videsh, the foreign investment arm of Oil and Natural Gas Corp, in 2008.
Indian companies were hoping to get rights to develop the asset as India was one of the handful of nations that continued to deal with Iran during years of sanctions against the country over its nuclear programme.
The new terms confine Indian companies to just production of gas and development of the field, said the two sources.
Although a formal offer is yet to be made, sources said, the new bid would be between $3 billion and $4 billion and would not include gas processing and development of downstream projects.
"As the negotiations are still ongoing, we would not like to comment at this stage," ONGC Videsh said in response to a Reuters' email seeking comments.
At the request of Iran, Indian companies last year submitted a $11-billion development proposal that covered the development of upstream activities and downstream infrastructure.
The field is estimated to hold 22 trillion cubic feet (tcf) of reserves, of which 16 tcf are deemed recoverable.
India and Iran will discuss the revised development plan for the field next week, during Iranian oil minister Bijan Zanganeh's visit to New Delhi.
To strengthen its ties with India, Iran has offered a higher freight discount on oil sales, besides agreeing to consider India's demand for a stake in a producing field, sources told Reuters last month.
In return, India has agreed to boost oil imports from Iran, oil minister Dharmendra Pradhan said last month after a meeting with Zanganeh in Delhi.
India Managing Complexities In Relationship With China: Nirmala Sitharaman
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India is managing the complexities in its relationship with China even as it seeks to make progress within the framework of a broader developmental partnership, Defence Minister Nirmala Sitharaman said on Wednesday.
"We continue to manage the complexities in the India-China relationship even as we seek to make progress within the framework of a broader developmental partnership," she said, addressing the Seventh Moscow Conference on International Security.
India and China were engaged in a 73-day standoff last year over Beijing's attempt to build a road close to India's narrow Chicken Neck area connecting the North Eastern states.
The standoff ended in August last after Chinese troops stopped the road construction at Doklam, though Beijing never officially acknowledged it. The area of the stand-off is also claimed by Bhutan.
Nirmala Sitharaman, who is in Russia on a three-day visit, also expressed concern over the resurgence of territorial disputes in the maritime domain in the region.
"Maritime territorial disputes are extremely complex. We need to ensure that such issues are managed effectively and solely through peaceful means," she said.
Noting that the past few decades of growth have transformed the Indo-Pacific region into the most dynamic engine of the global economy, she said, "We need to ensure that the prosperity of the Asia-Pacific region is not put at risk through unilateral actions that can undermine regional peace and stability".
She said the rights of freedom of navigation and over-flight as well as unimpeded commerce should be ensured.
"For India, this is vital to sustain its own economic engagement with the Indo-Pacific region for mutual benefit," she added.
China has been asserting its vast claims to the South China Sea, transforming reefs into islands capable of hosting military equipment.
Brunei, Malaysia, the Philippines, Vietnam and Taiwan have their own claims to the sea, while US warships regularly conduct freedom of navigation operations near islands controlled by Beijing.
"We continue to manage the complexities in the India-China relationship even as we seek to make progress within the framework of a broader developmental partnership," she said, addressing the Seventh Moscow Conference on International Security.
India and China were engaged in a 73-day standoff last year over Beijing's attempt to build a road close to India's narrow Chicken Neck area connecting the North Eastern states.
The standoff ended in August last after Chinese troops stopped the road construction at Doklam, though Beijing never officially acknowledged it. The area of the stand-off is also claimed by Bhutan.
Nirmala Sitharaman, who is in Russia on a three-day visit, also expressed concern over the resurgence of territorial disputes in the maritime domain in the region.
"Maritime territorial disputes are extremely complex. We need to ensure that such issues are managed effectively and solely through peaceful means," she said.
Noting that the past few decades of growth have transformed the Indo-Pacific region into the most dynamic engine of the global economy, she said, "We need to ensure that the prosperity of the Asia-Pacific region is not put at risk through unilateral actions that can undermine regional peace and stability".
She said the rights of freedom of navigation and over-flight as well as unimpeded commerce should be ensured.
"For India, this is vital to sustain its own economic engagement with the Indo-Pacific region for mutual benefit," she added.
China has been asserting its vast claims to the South China Sea, transforming reefs into islands capable of hosting military equipment.
Brunei, Malaysia, the Philippines, Vietnam and Taiwan have their own claims to the sea, while US warships regularly conduct freedom of navigation operations near islands controlled by Beijing.
BJP Will Neither Abolish Reservation Nor Allow Anyone To Do So: Amit Shah
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BJP president Amit Shah on Wednesday said the central government would neither scrap the policy of reservation for Scheduled Caste (SC) and Scheduled Tribe (ST) communities in education and jobs nor allow anyone to do so. His comments come amid the ongoing Dalit uproar over the dilution of SC/ST (Prevention of Atrocities) Act.
"No one can dare to change" the reservation policy "as set by B R Ambedkar in the Constitution", the BJP chief said at a public meeting. Mr Shah had also tweeted about the same on Tuesday.
Mr Shah also held the Congress and other opposition parties responsible for the deaths of nearly a dozen people in the violence during a nationwide strike called on April 2 by various Dalit outfits.
The "Bharat bandh" called by the protesting Dalit groups led to 11 deaths, numerous clashes and incidents of arson across five states.
Top ministers and other BJP leaders have also blamed the opposition Congress of politicizing the issue. Home Minister Rajnath Singh has also said that the government has not diluted the SC/ST law.
Amit Shah had previously pointed out that Prime Minister Narendra Modi had met lawmakers belonging to the Scheduled Castes and had assured them that the government was doing everything to protect the rights and well-being of "our Dalit sisters and brothers."
Alleging that a "misinformation campaign" had been launched in the media and on social media that the BJP would withdraw reservations, Mr Shah said, "I want to make it clear in this public meeting in the presence of so many people that the BJP will not withdraw reservations at all, nor will it allow anyone to do so."
The Centre on Wednesday moved a plea in the Supreme Court seeking to review the March 20 verdict putting safeguards on arrest under the stringent SC/ST (Prevention of Atrocities) Act.
The top court asserted that "no provisions of the SC/ST Act have been diluted" rather, some suggestions have been made to "protect innocents" and refused to keep in abeyance the verdict.
The court also said an arrest made without any preliminary investigation goes against the constitutional right of liberty.
The judgment, delivered on March 20, offered some relaxation in two tough provisions of the SC/ST Prevention of Atrocities Act -- that a person accused under the law be immediately arrested and not be allowed bail. It led to accusations from Dalit groups that the law has been weakened.
"No one can dare to change" the reservation policy "as set by B R Ambedkar in the Constitution", the BJP chief said at a public meeting. Mr Shah had also tweeted about the same on Tuesday.
Mr Shah also held the Congress and other opposition parties responsible for the deaths of nearly a dozen people in the violence during a nationwide strike called on April 2 by various Dalit outfits.
The "Bharat bandh" called by the protesting Dalit groups led to 11 deaths, numerous clashes and incidents of arson across five states.
Top ministers and other BJP leaders have also blamed the opposition Congress of politicizing the issue. Home Minister Rajnath Singh has also said that the government has not diluted the SC/ST law.
Amit Shah had previously pointed out that Prime Minister Narendra Modi had met lawmakers belonging to the Scheduled Castes and had assured them that the government was doing everything to protect the rights and well-being of "our Dalit sisters and brothers."
Alleging that a "misinformation campaign" had been launched in the media and on social media that the BJP would withdraw reservations, Mr Shah said, "I want to make it clear in this public meeting in the presence of so many people that the BJP will not withdraw reservations at all, nor will it allow anyone to do so."
The Centre on Wednesday moved a plea in the Supreme Court seeking to review the March 20 verdict putting safeguards on arrest under the stringent SC/ST (Prevention of Atrocities) Act.
The top court asserted that "no provisions of the SC/ST Act have been diluted" rather, some suggestions have been made to "protect innocents" and refused to keep in abeyance the verdict.
The court also said an arrest made without any preliminary investigation goes against the constitutional right of liberty.
The judgment, delivered on March 20, offered some relaxation in two tough provisions of the SC/ST Prevention of Atrocities Act -- that a person accused under the law be immediately arrested and not be allowed bail. It led to accusations from Dalit groups that the law has been weakened.
Rajnath Singh To Meet Yogi Adityanath Over Empowering Backward Districts
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Home Minister Rajnath Singh will hold deliberations with Uttar Pradesh Chief Minister Yogi Adityanath on April 9 regarding steps to boost development in eight backward districts of the state.
The eight districts which have been identified for focused development include Chitrakoot, Balrampur, Bahraich, Sonbhadra, Shrawasti, Chandauli, Siddarthnagar and Fatehpur.
"The Home Minister will meet UP chief minister in Lucknow to discuss steps to give a boost to eight aspirational districts, identified by the NITI Aayog for special attention," a senior NITI Aayog official said.
Last month, the NITI Aayog had come up with a mechanism under which 115 most underdeveloped districts of the country termed as 'aspirational' would be competing with one another in terms of performance and they will be ranked on 49 indicators based on various data points.
The 49 indicators on 81 data points will cover five development areas of health and nutrition, education, agriculture and water resources, financial inclusion and skill development and basic infrastructure.
From the beginning of next fiscal year from April 1, this real-time data collection and monitoring will be open for public viewing.
The Centre has embarked upon a major policy initiative for rapid transformation of 115 districts which are lagging on specific development parameters.
Earlier this year, Prime Minister Narendra Modi had asked collectors and officers-in-charge of the 115 aspirational districts to come up with pioneering innovations to achieve visible results for development by April 14, the birth anniversary of BR Ambedkar.
Senior government officials of the rank of additional secretary and joint secretary have been designated as officers-in-charge to coordinate the efforts of the Centre and States in addressing the specific developmental needs of these districts.
The eight districts which have been identified for focused development include Chitrakoot, Balrampur, Bahraich, Sonbhadra, Shrawasti, Chandauli, Siddarthnagar and Fatehpur.
"The Home Minister will meet UP chief minister in Lucknow to discuss steps to give a boost to eight aspirational districts, identified by the NITI Aayog for special attention," a senior NITI Aayog official said.
Last month, the NITI Aayog had come up with a mechanism under which 115 most underdeveloped districts of the country termed as 'aspirational' would be competing with one another in terms of performance and they will be ranked on 49 indicators based on various data points.
The 49 indicators on 81 data points will cover five development areas of health and nutrition, education, agriculture and water resources, financial inclusion and skill development and basic infrastructure.
From the beginning of next fiscal year from April 1, this real-time data collection and monitoring will be open for public viewing.
The Centre has embarked upon a major policy initiative for rapid transformation of 115 districts which are lagging on specific development parameters.
Earlier this year, Prime Minister Narendra Modi had asked collectors and officers-in-charge of the 115 aspirational districts to come up with pioneering innovations to achieve visible results for development by April 14, the birth anniversary of BR Ambedkar.
Senior government officials of the rank of additional secretary and joint secretary have been designated as officers-in-charge to coordinate the efforts of the Centre and States in addressing the specific developmental needs of these districts.
SpaceX's Cargo-Packed Dragon Arrives At The International Space Station
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SpaceX's unmanned Dragon cargo ship arrived Wednesday at the International Space Station, packed with food, gear and science experiments for the astronauts living in orbit.
"We have capture confirmed," a NASA commentator said, as the space station's robotic arm latched onto the gum-drop shaped spacecraft at 6:40 am (1040 GMT), at a moment when the spacecraft was over the southern part of the Democratic Republic of Congo.
Over the coming hours, the spacecraft will be brought closer and bolted onto the orbiting outpost. Astronauts will begin unpacking later Wednesday.
The cargo ship is carrying 5,800 pounds (2,600 kilograms) of food, supplies and science experiments to enable the study of thunderstorms, anti-cancer drugs, and technology to remove debris in orbit.
The mission is the 14th for SpaceX under a $1.6 billion contract with NASA to resupply the space station over multiple years.
Both the Dragon cargo vessel and the Falcon 9 booster that launched in on Monday were flown to space before, marking the second time SpaceX has used a recycled spaceship and rocket to reach the ISS.
"We have capture confirmed," a NASA commentator said, as the space station's robotic arm latched onto the gum-drop shaped spacecraft at 6:40 am (1040 GMT), at a moment when the spacecraft was over the southern part of the Democratic Republic of Congo.
Over the coming hours, the spacecraft will be brought closer and bolted onto the orbiting outpost. Astronauts will begin unpacking later Wednesday.
The cargo ship is carrying 5,800 pounds (2,600 kilograms) of food, supplies and science experiments to enable the study of thunderstorms, anti-cancer drugs, and technology to remove debris in orbit.
The mission is the 14th for SpaceX under a $1.6 billion contract with NASA to resupply the space station over multiple years.
Both the Dragon cargo vessel and the Falcon 9 booster that launched in on Monday were flown to space before, marking the second time SpaceX has used a recycled spaceship and rocket to reach the ISS.
Business Affairs
ICICI Bank-Videocon loan whistle-blower claims govt silent on 12 cases raised in the past: Report
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The board of directors of ICICI Bank decided to back MD and CEO Chanda Kochhar against allegations of quid pro quo in the ICICI-Videocon deal on the basis of an internal evaluation carried out by Chairman MK Sharma, according to sources in the know. No third party or external consultancy, accounting or forensics firm was hired to present its findings before the board. Propriety demands that the process should have been evaluated and vetted by a third party instead.
Sharma's findings put before the short notice board meeting on March 28 were the same that he conducted in 2016. It is believed that at that time, Sharma had evaluated the bank's credit evaluation process right after whistleblower Virendra Gupta's disclosures in 2016 regarding the Rs 3,250 crore and Rs 660 crore loans and alleged quid pro quo in the form of an identical 10 per cent foreign funding in Kochhar's husband Deepak Kochhar's company NuPower Renewables.
Deepak Kochhar and Videocon promoter Venugopal Dhoot had together set up a 50:50 JV NuPower Renewables in 2008. These revelations led to allegations of propriety and conflict of interest.
Sharma is believed to have evaluated lead arranger SBI Capital's proposal, the due diligence carried out by SBI and co-lead IDBI as well as the internal proposals put up within ICICI. He also evaluated the notes of the consortium meeting and sanction by ICICI's credit committee, which included Chanda Kochhar.
Sharma's presentation to the board is also believed to have concluded that ICICI's credit evaluation process was so robust that no person, however, high up he/she may be, was in a position to influence the credit decision.
As a result, the board reposed full faith and confidence in MD & CEO Chanda Kochhar. "...the board has come to the conclusion that there is no question of any quid pro quo/nepotism/conflict of interest as is being alleged in various rumours. The Board has full confidence and reposes full faith in the Bank's MD & CEO Ms Chanda Kochhar. The Board also recommends the entire management team under the leadership of the MD & CEO for their hard work and dedication. We would urge you not to be misled by these rumours which are being spread to malign the Bank and its top management," a statement from the board of directors said.
Besides chairman MK Sharma and MD & CEO Chanda Kochhar, the ICICI Bank board includes N. S. Kannan, Executive Director; Vishakha Mulye, Executive Director; Vijay Chandok, Executive Director; Anup Bagchi, Executive Director; Chartered accountant Uday Chitale; chartered accountant Dileep Choksi; former IBM India head Neelam Dhawan; former IRMA director Dr Tushaar Shah; former LIC chairman VK Sharma; and former IAS officer Amit Agrawal.
Sharma's findings put before the short notice board meeting on March 28 were the same that he conducted in 2016. It is believed that at that time, Sharma had evaluated the bank's credit evaluation process right after whistleblower Virendra Gupta's disclosures in 2016 regarding the Rs 3,250 crore and Rs 660 crore loans and alleged quid pro quo in the form of an identical 10 per cent foreign funding in Kochhar's husband Deepak Kochhar's company NuPower Renewables.
Deepak Kochhar and Videocon promoter Venugopal Dhoot had together set up a 50:50 JV NuPower Renewables in 2008. These revelations led to allegations of propriety and conflict of interest.
Sharma is believed to have evaluated lead arranger SBI Capital's proposal, the due diligence carried out by SBI and co-lead IDBI as well as the internal proposals put up within ICICI. He also evaluated the notes of the consortium meeting and sanction by ICICI's credit committee, which included Chanda Kochhar.
Sharma's presentation to the board is also believed to have concluded that ICICI's credit evaluation process was so robust that no person, however, high up he/she may be, was in a position to influence the credit decision.
As a result, the board reposed full faith and confidence in MD & CEO Chanda Kochhar. "...the board has come to the conclusion that there is no question of any quid pro quo/nepotism/conflict of interest as is being alleged in various rumours. The Board has full confidence and reposes full faith in the Bank's MD & CEO Ms Chanda Kochhar. The Board also recommends the entire management team under the leadership of the MD & CEO for their hard work and dedication. We would urge you not to be misled by these rumours which are being spread to malign the Bank and its top management," a statement from the board of directors said.
Besides chairman MK Sharma and MD & CEO Chanda Kochhar, the ICICI Bank board includes N. S. Kannan, Executive Director; Vishakha Mulye, Executive Director; Vijay Chandok, Executive Director; Anup Bagchi, Executive Director; Chartered accountant Uday Chitale; chartered accountant Dileep Choksi; former IBM India head Neelam Dhawan; former IRMA director Dr Tushaar Shah; former LIC chairman VK Sharma; and former IAS officer Amit Agrawal.
HMD Global to focus on expanding product portfolio and retail presence
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Global, says, "Of the 70 million Nokia smartphones sold globally, India is amongst the top three markets contributing to the global sales for Nokia smartphone. We have even registered a 5x growth during the last eight months. And 2018 is the year where we will really scale up."
HMD Global is expanding its collaborations for scaling operations. The company has already entered into an association with the Shah Rukh Khan-owned Kolkata Knight Riders as its principal sponsor. Mehta says, "A lot of people are asking us that we are still doing the same old things. But this partnership is to announce that Nokia is back. People know Nokia but they don't necessarily know what Nokia Android smartphone is. It will also drive contextual awareness about our phones - Nokia Android smartphone. The partnership will also help us in connecting with our fans. The kind of fan following IPL has is the kind of consumer base we want to reach out to."
In the year 2018, the company will focus on three main aspects. The first is to expand product portfolio, second is the innovation in the way they run their business and, lastly, deepening channel presence. In India, HMD Global has expanded its offline footprint and has a network of over 510 distributors with over 100,000 stores. Apart from the partnership with e-commerce players, the company has started selling smartphones through Nokia Mobile Shop Z(nokia.com/phones).
With the focus shifting towards 'Make in India', three out of four Android smartphones launched today, the Nokia 1, New Nokia 6 and Nokia 7 Plus will be manufactured at the Foxconn facility in India. However, the Nokia 8 Sirocco, the most premium of the lot, is the only device that will be imported into the country. As there has been an increase in the import duties of mobile components in the country, Mehta says, "We are following the phased manufacturing program with Foxconn. We are a little late but over time we will be in line with the phased manufacturing programme."
The New Nokia 6 has been priced at Rs 16,999, Nokia 7 Plus at Rs 25,999, and the Nokia 8 Sirocco will be available at Rs 49,999.
The company is also focusing on expanding its presence in the enterprise channel. Mehta further explains, "We are on Android One, the purest and securest version of Android, which enterprises are keen to adopt." For this, HMD Global is working with HCL where the staff is. "We are working with our partner HCL and our ground staff is making calls on large and medium enterprises. We are at a very early stage on this and need to understand it better."
HMD Global is expanding its collaborations for scaling operations. The company has already entered into an association with the Shah Rukh Khan-owned Kolkata Knight Riders as its principal sponsor. Mehta says, "A lot of people are asking us that we are still doing the same old things. But this partnership is to announce that Nokia is back. People know Nokia but they don't necessarily know what Nokia Android smartphone is. It will also drive contextual awareness about our phones - Nokia Android smartphone. The partnership will also help us in connecting with our fans. The kind of fan following IPL has is the kind of consumer base we want to reach out to."
In the year 2018, the company will focus on three main aspects. The first is to expand product portfolio, second is the innovation in the way they run their business and, lastly, deepening channel presence. In India, HMD Global has expanded its offline footprint and has a network of over 510 distributors with over 100,000 stores. Apart from the partnership with e-commerce players, the company has started selling smartphones through Nokia Mobile Shop Z(nokia.com/phones).
With the focus shifting towards 'Make in India', three out of four Android smartphones launched today, the Nokia 1, New Nokia 6 and Nokia 7 Plus will be manufactured at the Foxconn facility in India. However, the Nokia 8 Sirocco, the most premium of the lot, is the only device that will be imported into the country. As there has been an increase in the import duties of mobile components in the country, Mehta says, "We are following the phased manufacturing program with Foxconn. We are a little late but over time we will be in line with the phased manufacturing programme."
The New Nokia 6 has been priced at Rs 16,999, Nokia 7 Plus at Rs 25,999, and the Nokia 8 Sirocco will be available at Rs 49,999.
The company is also focusing on expanding its presence in the enterprise channel. Mehta further explains, "We are on Android One, the purest and securest version of Android, which enterprises are keen to adopt." For this, HMD Global is working with HCL where the staff is. "We are working with our partner HCL and our ground staff is making calls on large and medium enterprises. We are at a very early stage on this and need to understand it better."
Jet Airways to buy 75 Boeing 737 MAX planes
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Things are looking up for the aviation sector in the country and the airlines are gearing up to service the ever-increasing demand. Full-service carrier Jet Airways has entered into an agreement with Chicago-based aircraft manufacturer Boeing to purchase 75 B-737 Max aircraft.
The order book of Indian carriers, which currently stands at over 1,000 aircraft, is set to get bigger with Naresh Goyal-owned airline ordering 75 more Boeing planes. The deal comes at a time when domestic passenger traffic is expected to touch 18 per cent growth in FY18.
Accoding to a report in Reuters, the jets would be worth $8.8 billion at list prices. The airlines, for a last few years, have been placing bulk orders to get discounted rates from aircraft manufacturers. In January last year, low-cost carrier SpiceJet had announced a deal to purchase 205 airplanes from Boeing for a whopping $22 billion or Rs 1.5 lakh crore.
Last month, Jet Airways CEO Vinay Dube had said Jet hopes to order 75 narrow-body aircraft by March 31 in addition to 75 Boeing 737 MAX that the airline had ordered in 2015. The full service carrier has a fleet of around 119 planes, comprising Boeing 777-300 ERs, Airbus A330-200/300, Next Generation Boeing 737s and ATR 72-500/600s.
In terms of pending orders, IndiGo is much ahead of the competition with nearly 400 Airbus A320s, and about 49 ATRs on order. This is followed by SpiceJet, which has firmed up its orders for 155 Boeing 737-8 Max, and 50 Bombardier Q400s. In India, LCCs like IndiGo and SpiceJet follow sale-and-leaseback model which enable them to sell new aircraft to lessors and lease those aircraft back.
In October 2014, IndiGo had placed a mega-order with Airbus to purchase 250 single-aisle A320neos. That deal continues to be the single-largest order placed by any airline in terms of number of aircraft. In 2011, IndiGo had placed orders for 180 planes with Airbus which was the biggest order in commercial aviation history at that time.
India is set to become the third-largest aviation market by 2019/20, behind the US and China. There are over 500 aircraft flown by scheduled commercial airlines at the moment.
Airbus has estimated that India will need some 1,750 new passenger and cargo aircraft over the next 20 years to meet the exponential growth in passenger and freight traffic. It includes 1,320 new single-aisle aircraft and 430 wide-body aircraft valued at $255 billion.
Airbus says the air traffic growth is likely to be driven by the fast-expanding economy, rising wealth, urbanisation and the government-backed Udan (Ude Desh Ka Aam Naagrik) scheme.
The order book of Indian carriers, which currently stands at over 1,000 aircraft, is set to get bigger with Naresh Goyal-owned airline ordering 75 more Boeing planes. The deal comes at a time when domestic passenger traffic is expected to touch 18 per cent growth in FY18.
Accoding to a report in Reuters, the jets would be worth $8.8 billion at list prices. The airlines, for a last few years, have been placing bulk orders to get discounted rates from aircraft manufacturers. In January last year, low-cost carrier SpiceJet had announced a deal to purchase 205 airplanes from Boeing for a whopping $22 billion or Rs 1.5 lakh crore.
Last month, Jet Airways CEO Vinay Dube had said Jet hopes to order 75 narrow-body aircraft by March 31 in addition to 75 Boeing 737 MAX that the airline had ordered in 2015. The full service carrier has a fleet of around 119 planes, comprising Boeing 777-300 ERs, Airbus A330-200/300, Next Generation Boeing 737s and ATR 72-500/600s.
In terms of pending orders, IndiGo is much ahead of the competition with nearly 400 Airbus A320s, and about 49 ATRs on order. This is followed by SpiceJet, which has firmed up its orders for 155 Boeing 737-8 Max, and 50 Bombardier Q400s. In India, LCCs like IndiGo and SpiceJet follow sale-and-leaseback model which enable them to sell new aircraft to lessors and lease those aircraft back.
In October 2014, IndiGo had placed a mega-order with Airbus to purchase 250 single-aisle A320neos. That deal continues to be the single-largest order placed by any airline in terms of number of aircraft. In 2011, IndiGo had placed orders for 180 planes with Airbus which was the biggest order in commercial aviation history at that time.
India is set to become the third-largest aviation market by 2019/20, behind the US and China. There are over 500 aircraft flown by scheduled commercial airlines at the moment.
Airbus has estimated that India will need some 1,750 new passenger and cargo aircraft over the next 20 years to meet the exponential growth in passenger and freight traffic. It includes 1,320 new single-aisle aircraft and 430 wide-body aircraft valued at $255 billion.
Airbus says the air traffic growth is likely to be driven by the fast-expanding economy, rising wealth, urbanisation and the government-backed Udan (Ude Desh Ka Aam Naagrik) scheme.
Cryptojacking attacks rose by 8,500% globally in 2017: report
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Cryptojacking attacks, defined as the secret use of a computing device to mine cryptocurrency, rose by a massive 8,500 per cent around the globe in 2017, says a recent research report by cyber security giant Symantec. The report, also reveals that India ranks second in Asia-Pacific Japan region, when it comes to cryptojacking and is the ninth most affected country around the world. "During the past year, an astronomical rise in cryptocurrency values triggered a cryptojacking gold rush with cyber criminals attempting to cash in on a volatile market," says the report.
The report claims that the growing popularity of cryptocurrencies has made it a more lucrative option for cyber criminals, who are adding cryptojacking to their arsenal and creating a highly profitable revenue stream as the ransomware market becomes overpriced and overcrowded.
According to Tarun Kaura, Director, Enterprise Security Product Management, Asia Pacific and Japan at Symantec, the massive profit incentive puts people, devices, and organisations at risk of unauthorised coin-miners siphoning resources from their systems. "Now you could be fighting for resources on your phone, computer or IoT device as attackers use them for profit. People need to expand their defenses or they will pay for the price for someone else using their devices," he added.
Coinminer, using a device illegally, can slow devices, overheat batteries, and in some cases render devices unusable. In India, many companies have been used for coin-mining recently and were left unaware about it for a long time.
The report also revealed that IoT devices continue to be ripe target for cyber attacks around the world and found a 600 per cent increase in overall IoT attacks in 2017. Malware attacks saw an increase on 200 per cent in the period. Threats in mobile space too continued to grow in the period. Symantec claims it blocked an average of 24,000 malicious mobile applications each day last year. It claims that India featured amongst the top ten list of countries where mobile malware was most frequently blocked in 2017.
Globally, the report says, US remains the country with most threats in 2017, followed by China and then India.
The Internet Security Threat report by Symantec, the developer of Norton AntiVirus, is based on data from Symantec's Global Intelligence Network, which records events from 126.5 million attack sensors worldwide and monitors threat activities in over 157 countries and territories.
The report claims that the growing popularity of cryptocurrencies has made it a more lucrative option for cyber criminals, who are adding cryptojacking to their arsenal and creating a highly profitable revenue stream as the ransomware market becomes overpriced and overcrowded.
According to Tarun Kaura, Director, Enterprise Security Product Management, Asia Pacific and Japan at Symantec, the massive profit incentive puts people, devices, and organisations at risk of unauthorised coin-miners siphoning resources from their systems. "Now you could be fighting for resources on your phone, computer or IoT device as attackers use them for profit. People need to expand their defenses or they will pay for the price for someone else using their devices," he added.
Coinminer, using a device illegally, can slow devices, overheat batteries, and in some cases render devices unusable. In India, many companies have been used for coin-mining recently and were left unaware about it for a long time.
The report also revealed that IoT devices continue to be ripe target for cyber attacks around the world and found a 600 per cent increase in overall IoT attacks in 2017. Malware attacks saw an increase on 200 per cent in the period. Threats in mobile space too continued to grow in the period. Symantec claims it blocked an average of 24,000 malicious mobile applications each day last year. It claims that India featured amongst the top ten list of countries where mobile malware was most frequently blocked in 2017.
Globally, the report says, US remains the country with most threats in 2017, followed by China and then India.
The Internet Security Threat report by Symantec, the developer of Norton AntiVirus, is based on data from Symantec's Global Intelligence Network, which records events from 126.5 million attack sensors worldwide and monitors threat activities in over 157 countries and territories.
Banks stare at $38 billion new dud loans from power sector: Report
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The banking sector, which is already reeling under a mammoth pile of bad loans, is looking at potential dud assets of $38 billion from the power sector, as $53 billion of the $178 billion bank loans to the sector are already stressed, said a report.
"Of the $178 billion (around Rs 11.7 trillion) of debt of the power sector, $53 billion (around Rs 3.5 trillion) are already under stress (primarily to the generation sector) and of this, as much as $38 billion (around Rs 2.5 trillion) have the potential of being written- off as bad loans," the Bank of America-Merrill Lynch report said today.
The report is based on the fact that as much as 71 gigawatt (gw) of private sector coal-based projects are facing bankruptcy filings at various NCLTs, implying probable resolution from June 2019 and it expects an average 75 per cent write-off in these loans.
Of the $178 billion loan, the distribution companies have $65 billion, generation companies have $77 billion, and transmission firms have a debt burden of $36 billion, says the report penned by BofA-ML research analysts Amish Shah and Sriharsh Singh.
Of the $53 billion of stressed loans, as much as $50 billion are to the generation sector alone, says the report, adding loans to the distribution sector, which were earlier stressed, are now better off given quasi-state guarantees and restructuring under the government's Ujwal Discom Assurance Yojana (Uday) scheme.
Of this $178 billion debt mountain, banks have the largest at 53 per cent of the total loans, followed by non-banking finance companies (NBFCs) at 35 per cent and the balance from the states.
About 43 per cent of loans are extended to the power generation sector, followed by distribution at 37 per cent and transmission at 20 per cent, the report said.
It can be noted that the power, steel, roads, mining and telecom sectors are the most stressed accounts for banks whose bad loan burden has crossed Rs 11 trillion or 10.5 per cent of the system as of December 2017.
The report further notes that the $116-billion national power utilities lose around $9 billion annually but can turnaround without hiking consumer tariffs and also continue to offer the present average subsidy of 2 per cent if the many of its cost-inefficiencies are resolved.
It also states that tariff hikes are not the way forward for the sector to turnaround as already tariffs for industrial and commercial consumers, who constitute 37 per cent of demand, are very high compared to its regional peers.
But the report is critical of the reforms introduced to address inefficiencies saying they expect limited progress.
As per the report, of the $116 billion expenditure incurred by power distributors annually (as of March 2016 - the latest available data for national distributors), 54 per cent is related to operations and maintenance/other expenses across the value chain (administration costs, employee expenses, taxes, marginal profits etc), fuel comprises only 20 per cent of the cost, borrowing cost is only 19 per cent and freight charges are at a low 7 per cent.
And surprisingly subsidies to farmers constitute only 2 per cent of the cost of the states on a national level barring for Punjab and Haryana where its 7-8 per cent.
Farmers are the second biggest consumer segment for the discoms with 22 per cent of total power consumption as agricultural power tariff is only Rs 1.7 per kilowatt hour (kWh) against the cost of Rs 6.3 per kwh.
Though some states provide free power to farmers, the expenses are paid by the respective states to distributors from their annual budgets.
"Our analysis suggests, while at the national level, power subsidy comprises 2 per cent of all states' annual expenditure, but for Punjab and Haryana, it 7-8 per cent," says the report.
The sector has a $5 billion import bill as one-sixth of the fuel needs are met by imports. For power generation companies, this comprises $24 billion in annual costs, while coal accounts for 87 per cent of this cost.
Besides, $4 billion of such fuel is imported which is around 5 per cent the country's non-oil and non-gold imports), comprising $3 billion of coal and $1 billion of LNG
"Of the $178 billion (around Rs 11.7 trillion) of debt of the power sector, $53 billion (around Rs 3.5 trillion) are already under stress (primarily to the generation sector) and of this, as much as $38 billion (around Rs 2.5 trillion) have the potential of being written- off as bad loans," the Bank of America-Merrill Lynch report said today.
The report is based on the fact that as much as 71 gigawatt (gw) of private sector coal-based projects are facing bankruptcy filings at various NCLTs, implying probable resolution from June 2019 and it expects an average 75 per cent write-off in these loans.
Of the $178 billion loan, the distribution companies have $65 billion, generation companies have $77 billion, and transmission firms have a debt burden of $36 billion, says the report penned by BofA-ML research analysts Amish Shah and Sriharsh Singh.
Of the $53 billion of stressed loans, as much as $50 billion are to the generation sector alone, says the report, adding loans to the distribution sector, which were earlier stressed, are now better off given quasi-state guarantees and restructuring under the government's Ujwal Discom Assurance Yojana (Uday) scheme.
Of this $178 billion debt mountain, banks have the largest at 53 per cent of the total loans, followed by non-banking finance companies (NBFCs) at 35 per cent and the balance from the states.
About 43 per cent of loans are extended to the power generation sector, followed by distribution at 37 per cent and transmission at 20 per cent, the report said.
It can be noted that the power, steel, roads, mining and telecom sectors are the most stressed accounts for banks whose bad loan burden has crossed Rs 11 trillion or 10.5 per cent of the system as of December 2017.
The report further notes that the $116-billion national power utilities lose around $9 billion annually but can turnaround without hiking consumer tariffs and also continue to offer the present average subsidy of 2 per cent if the many of its cost-inefficiencies are resolved.
It also states that tariff hikes are not the way forward for the sector to turnaround as already tariffs for industrial and commercial consumers, who constitute 37 per cent of demand, are very high compared to its regional peers.
But the report is critical of the reforms introduced to address inefficiencies saying they expect limited progress.
As per the report, of the $116 billion expenditure incurred by power distributors annually (as of March 2016 - the latest available data for national distributors), 54 per cent is related to operations and maintenance/other expenses across the value chain (administration costs, employee expenses, taxes, marginal profits etc), fuel comprises only 20 per cent of the cost, borrowing cost is only 19 per cent and freight charges are at a low 7 per cent.
And surprisingly subsidies to farmers constitute only 2 per cent of the cost of the states on a national level barring for Punjab and Haryana where its 7-8 per cent.
Farmers are the second biggest consumer segment for the discoms with 22 per cent of total power consumption as agricultural power tariff is only Rs 1.7 per kilowatt hour (kWh) against the cost of Rs 6.3 per kwh.
Though some states provide free power to farmers, the expenses are paid by the respective states to distributors from their annual budgets.
"Our analysis suggests, while at the national level, power subsidy comprises 2 per cent of all states' annual expenditure, but for Punjab and Haryana, it 7-8 per cent," says the report.
The sector has a $5 billion import bill as one-sixth of the fuel needs are met by imports. For power generation companies, this comprises $24 billion in annual costs, while coal accounts for 87 per cent of this cost.
Besides, $4 billion of such fuel is imported which is around 5 per cent the country's non-oil and non-gold imports), comprising $3 billion of coal and $1 billion of LNG
General Awareness
Salient features of the Representation of People’s Act.
‘one candidate, one seat’
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Context: The Election Commission has told the Supreme Court that it supports the proposal to allow one candidate to contest from only one constituency in an election. The EC expressed this view in an affidavit it filed in the petition over the matter.
Background:
The Supreme Court had in December 2017 issued notices seeking replies from the Election Commission and the Centre on the issue. At the time, the Supreme Court had said the practice of one candidate contesting multiple seats was a drain on the exchequer since it necessitated bypolls.
A petition has been filed in the Supreme Court challenging Section 33(7) of the Representation of the People Act of 1951 that allows a person to contest elections to Parliament and state assemblies from two constituencies and sought an end to the practice.
What’s the issue?
Political parties across the country field senior leaders from more than one seat in a bid to ensure victory. If they win from multiple seats, these leader are then required to vacate other seats and continue to hold only one. This means a general election is usually followed closely by a bye-election to the seats that have been vacated.
Section 33(7) of RPA:
Section 33(7) of the Representation of People’s Act permits a candidate to contest any election (Parliamentary, State Assembly, Biennial Council, or bye-elections) from up to two constituencies. The provision was introduced in 1996 prior to which there was no bar on the number of constituencies from which a candidate could contest.
Why candidates should be barred from contesting from more than one seat?
One person, one vote & one candidate, one constituency is the dictum of democracy. However, as per the law, as it stands today, a person can contest the election for the same office from two constituencies simultaneously. When a candidate contests from two seats, it is imperative that he has to vacate one of the two seats if he wins both. This, apart from the consequent unavoidable financial burden on the public exchequer, government manpower and other resources for holding bye-election is also an injustice to the voters of the constituency which the candidate is quitting from.
Alternative suggested by the Election commission:
The ECI has alternatively suggested that if existing provisions are retained then the candidate contesting from two seats should bear the cost of the bye-election to the seat that the contestant decides to vacate in the event of his/her winning both seats. The amount in such an event could be Rs 5 lakh for assembly election and Rs 10 lakh for parliament election.
Context: The Election Commission has told the Supreme Court that it supports the proposal to allow one candidate to contest from only one constituency in an election. The EC expressed this view in an affidavit it filed in the petition over the matter.
Background:
The Supreme Court had in December 2017 issued notices seeking replies from the Election Commission and the Centre on the issue. At the time, the Supreme Court had said the practice of one candidate contesting multiple seats was a drain on the exchequer since it necessitated bypolls.
A petition has been filed in the Supreme Court challenging Section 33(7) of the Representation of the People Act of 1951 that allows a person to contest elections to Parliament and state assemblies from two constituencies and sought an end to the practice.
What’s the issue?
Political parties across the country field senior leaders from more than one seat in a bid to ensure victory. If they win from multiple seats, these leader are then required to vacate other seats and continue to hold only one. This means a general election is usually followed closely by a bye-election to the seats that have been vacated.
Section 33(7) of RPA:
Section 33(7) of the Representation of People’s Act permits a candidate to contest any election (Parliamentary, State Assembly, Biennial Council, or bye-elections) from up to two constituencies. The provision was introduced in 1996 prior to which there was no bar on the number of constituencies from which a candidate could contest.
Why candidates should be barred from contesting from more than one seat?
One person, one vote & one candidate, one constituency is the dictum of democracy. However, as per the law, as it stands today, a person can contest the election for the same office from two constituencies simultaneously. When a candidate contests from two seats, it is imperative that he has to vacate one of the two seats if he wins both. This, apart from the consequent unavoidable financial burden on the public exchequer, government manpower and other resources for holding bye-election is also an injustice to the voters of the constituency which the candidate is quitting from.
Alternative suggested by the Election commission:
The ECI has alternatively suggested that if existing provisions are retained then the candidate contesting from two seats should bear the cost of the bye-election to the seat that the contestant decides to vacate in the event of his/her winning both seats. The amount in such an event could be Rs 5 lakh for assembly election and Rs 10 lakh for parliament election.
Background:
The Supreme Court had in December 2017 issued notices seeking replies from the Election Commission and the Centre on the issue. At the time, the Supreme Court had said the practice of one candidate contesting multiple seats was a drain on the exchequer since it necessitated bypolls.
A petition has been filed in the Supreme Court challenging Section 33(7) of the Representation of the People Act of 1951 that allows a person to contest elections to Parliament and state assemblies from two constituencies and sought an end to the practice.
What’s the issue?
Political parties across the country field senior leaders from more than one seat in a bid to ensure victory. If they win from multiple seats, these leader are then required to vacate other seats and continue to hold only one. This means a general election is usually followed closely by a bye-election to the seats that have been vacated.
Section 33(7) of RPA:
Section 33(7) of the Representation of People’s Act permits a candidate to contest any election (Parliamentary, State Assembly, Biennial Council, or bye-elections) from up to two constituencies. The provision was introduced in 1996 prior to which there was no bar on the number of constituencies from which a candidate could contest.
Why candidates should be barred from contesting from more than one seat?
One person, one vote & one candidate, one constituency is the dictum of democracy. However, as per the law, as it stands today, a person can contest the election for the same office from two constituencies simultaneously. When a candidate contests from two seats, it is imperative that he has to vacate one of the two seats if he wins both. This, apart from the consequent unavoidable financial burden on the public exchequer, government manpower and other resources for holding bye-election is also an injustice to the voters of the constituency which the candidate is quitting from.
Alternative suggested by the Election commission:
The ECI has alternatively suggested that if existing provisions are retained then the candidate contesting from two seats should bear the cost of the bye-election to the seat that the contestant decides to vacate in the event of his/her winning both seats. The amount in such an event could be Rs 5 lakh for assembly election and Rs 10 lakh for parliament election.
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