Fadnavis wins trust vote; Shiv Sena, Cong cry foul

November 12, 2014

Mumbai, Nov 12: The 13-day-old BJP government in Maharashtra today won the trust vote in the Assembly but the passage of the confidence motion triggered a huge controversy with Shiv Sena and Congress contesting the procedure and claiming it had failed to prove majority.

Calling the development a "black day" in the history of the state, the two opposition parties announced that they would register their protest with Governor C Vidyasagar Rao.

FadnavisEarlier, BJP MLA Ashish Shelar moved a one-line motion seeking confidence of the House in the Devendra Fadnavis-led government, which was put to a voice vote by Speaker Haribhau Bagde.

As the legislators supporting the motion exclaimed "Aye", the Speaker declared it passed, triggering a storm of protest among Shiv Sena and Congress MLAs, who rushed to the Well of the House. Sena earlier in the day formally decided to occupy the main Opposition's space in the Assembly.

"The motion has been passed," Bagde was heard saying over the din. Agitated MLAs of Shiv Sena and Congress were seen arguing with the Speaker even as the decibel level rose steadily, forcing him to adjourn the proceedings.

During the proceedings, members of NCP, which had offered outside support to the BJP government, remained quietly seated.

Sena had earlier staked its claim to the Leader of Opposition's position and the Speaker had said he would take up its demand after the trust vote as Congress too had demanded the post on the grounds that Sena continues to be a constituent of the BJP-led NDA.

As proceedings resumed, the Speaker announced appointment of Sena Legislature Party leader Eknath Shinde as the Leader of the Opposition in the House.
Led by Shinde, Sena MLAs again took up their protest and called for the confidence motion to be determined by a division of votes.

BJP has 121 MLAs and, together with NCP's 41, has the support of 162 MLAs, 18 more than required for a majority in the House which has an effective strength of 287. The party has also claimed the support of seven Independents, three of Bahujan Vikas Aaghadi and some others from smaller parties.

Earlier in the day, BJP's Bagde was elected as the Speaker after Vijay Auti and Varsha Gaikwad, the Sena and Congress nominees, respectively, withdrew from the race, sending signals that the trust vote would go through unhindered with the government easily proving its majority with NCP's help.

Unhappy with the confidence motion passed through voice vote, the Sena MLAs said it amounted to "strangling democracy".

"The House should be run as per rules and the Constitution should not be trampled upon. The new government is strangulating democracy. We sought division but the trust motion was passed by voice vote," Shinde said.

Rejecting his contention, however, the Speaker said, "The issue is over. The trust vote has been passed."

Fadnavis, joining issue with Shinde, said, "Although there is the word opposition in your designation, the expectation is that you should not oppose each and every issue and support the government's pro-people decisions."

Meanwhile, strongly deprecating the passage of confidence motion by a voice vote, former Chief Minister Prithviraj Chavan said it was "unprecedented" in democratic history and demanded that the government seek a division of votes to prove its majority.

"It is a black day for democratic process in Maharashtra. Never has a confidence motion been passed by voice vote. Until the government proves its majority in the House by division, the government is illegitimate," he told reporters outside the Assembly.

State Congress president Manikrao Thakre held that the motion had "not been passed" as there was no division of votes.

"Being a minority government, it was the duty of the government to pass the motion through division. They are around 25 MLAs short (of majority). The Atal Bihari Vajpayee government fell by one vote in Parliament.

"We will frustrate all attempts to manipulate a majority and not allow the Assembly to conduct any business until the government obtains a fresh trust vote," Thakre said, adding that the party's MLAs will call on the Governor to lodge a formal protest over the issue.

Further, claiming that the Fadnavis government had manipulated the trust vote as it did not enjoy majority in the House, Shiv Sena leader Ramdas Kadam said, "Vidhan Sabha stands tarnished today.

"A division would have made it clear whether they have the support of the majority of MLAs. The confidence motion has not been passed."

Raising questions about the conduct of the Speaker, Kadam said he would speak to leaders of all non-BJP parties, including NCP, whether a no-confidence motion should be brought against him.

"People of Maharashtra will not forgive the BJP government for what they have done," he said, adding that the party would take legal recourse in the matter.

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News Network
February 9,2020

Mumbai, Feb 9: Given the slow progress on the ongoing Rs 38,000-crore capacity expansion at the four largest metro airports, and also the surging traffic, the snaky queues will continue at least till 2023, warns a report.

The four largest airports -- New Delhi, Mumbai, Bengaluru and Hyderabad -- handle more than half of the traffic and are operating at 130 per cent of their installed capacity. These airports are under a record Rs 38,000-crore capex but the capacity will not come up before end-2023, says a Crisil report.

“With the dip in traffic growth largely behind, we expect congestion at the top four airports of New Delhi, Mumbai, Bengaluru and Hyderabad, which handle more than half of the load, to continue till about FY23,” says the report.

Already these airports are operating at over 130 percent of installed capacity, and the ongoing healthy traffic growth this operating rate is expected to rise further in the next 12 months.

“Operationalising of capacities in the following two fiscals will bring down utilisation levels albeit still high at over 90 per cent by fiscal 2023 and that is despite an unprecedented Rs 38,000 crore capex being undertaken by the operators of these airports over five fiscals 2020-24,” says the report.

Despite this unprecedented capex that is debt-funded, ratings are likely to be stable given the strong cash flows expected due to healthy traffic growth, low project risks associated with the capex and improving regulatory environment, notes the report.

“Capacity at these four airports will increase a cumulative 65 per cent to 228 million annually (from 138 million now) by fiscal 2023. However, traffic is expected to grow strong at up to 10 per cent per annum over the same period. Since additional capacities will become operational in phases only by fiscal 2023, high passenger growth will add to congestion till then,” warn the report.

High utilisation will ride on pent-up demand (accumulated in 2019 as traffic was impacted with the grounding of Jet Airways) and one-off issues with new aircraft of certain airlines.

Further impetus will also come from improving connectivity to lower-tier cities and reducing fare difference between air and rail. Increasing footfalls at airports provide a leg-up to non-aero streams such as advertising, rentals, food and beverage and parking, which comprise around half of the revenue of airports already.

These are expected to grow strongly at over 10-12 per cent, also supported by higher monetisation avenue coming along with current capex. The other half of revenue (aero revenue) is an entitlement approved by the regulator, providing a pre-determined, fixed return over the asset base and a pass-through of costs.

Aero revenue is also expected to get a bump up during fiscals 2022-24, when a new tariff order for airports is likely. Overall aggregate cash flows are likely to double by fiscal 2024 and provide a healthy cushion against servicing of debt contracted for capex, the report concludes.

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News Network
January 21,2020

Jan 21: Indian policymakers may make it easier for companies to tap foreign funding, as a prolonged cash squeeze makes it tough for firms to borrow at home.

Investors are speculating about potential steps Finance Minister Nirmala Sitharaman could unveil when she presents the nation’s budget on Feb. 1. These measures may include freeing up firms to borrow at higher rates and offering tax breaks to global funds.

“The government will need to relax local rules to make it easier for Indian companies to raise debt overseas and tide over the funding crunch in the onshore market,” said Raj Kothari, London-based head of trading at Jay Capital Ltd. “At the same time, they need to ensure that the borrowers tapping offshore markets abide with stricter corporate governance so as to avoid further defaults.”

A prolonged crisis in India’s shadow bank sector and a pile of bad loans at traditional lenders is making it expensive for Indian companies, other than the best-rated firms, to access funding. The government has tried a series of measures to spur domestic credit, including providing so-called credit enhancement and allowing tiny firms to restructure debt.

Here are some steps Sitharaman may consider to spur foreign borrowing:

• She could raise the cap of 450 basis points above Libor, which limits overall foreign debt costs for Indian companies

• This could help lower-rated firms sell bonds abroad. Indian companies rated BBB currently borrow at more than 10%, about 3.8 percentage points more than their top-rated peers;

• Sitharaman could waive the withholding tax foreign investors need to pay on holdings of rupee-denominated debt sold by Indian companies abroad

• The waiver was offered between September 2018 to March 2019, but wasn’t extended as the highest global interest rates since the financial crisis deterred Indian borrowers. Since then, the three-month Libor has dropped by about 1 percentage point

• She could permit Indian property developers and housing finance lenders to sell overseas bonds for reasons beyond affordable housing projects

• New funding lines to the real estate sector, arguably ground zero of India’s economic slowdown, could help kickstart consumption and investment as the industry is the nation’s biggest job-creator.

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Agencies
January 16,2020

New Delhi, Jan 16: Chief of Defence Staff (CDS) General Bipin Rawat on Thursday said that he supported a negotiated peace deal between the US and Taliban in Afghanistan.

Gen. Rawat was speaking along with other world leaders at Raisina dialogue organised by India's influential think-tank Observer Research Foundation (ORF).

Arguing that terrorism was going to stay in the world as long as states were going to use it against other states, he said it was important to prevent states from using terrorism as a "proxy war".

"The only way to deal with it was what the US did post 9/11," he said, adding that the war against terror was necessary.

However, now a peace deal with Taliban is required, Gen. Rawat said.

"It must be a negotiated peace deal so that the Taliban stops using terrorism," he added. Hinting that the US should maintain its presence in Afghanistan, the CDS said that though Afghan security forces are now equipped to fight back terror groups in Afghanistan but they still need support.

The newly appointed CDS officially confirmed that India has shifted its stance on Taliban. India has traditionally been opposed to the Pakistan-backed Taliban in Afghanistan. Thousands of Afghans were given refuge in India when they fled the country due to oppression and terrorism of the Taliban regime. India is in alignment with the democratically elected government in Kabul that the Taliban remains supported by Pakistan.

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