AirAsia-Tata joint venture gets govt's nod to start new airline

March 6, 2013

AirAsia-Tata_joint

New Delhi, Mar 6: The finance ministry on Wednesday cleared the investment proposal of Malaysian budget carrier AirAsia which seeks to enter India through a joint venture with Tata Group and another company.

"AirAsia's proposal has been cleared. It is as per the policy (which allows) up to 49 per cent FDI. Rs 80 crore is initial investment," a senior government official said.

The Foreign Investment Promotion Board (FIPB), headed by DEA secretary Arvind Mayaram, approved the proposal at its meeting here.

AirAsia has applied to FIPB to take 49 per cent in a venture with Tata Sons Ltd and Arun Bhatia's Telestra Tradeplace Pvt Ltd.

The carrier will now have to approach the aviation regulator Directorate General of Civil Aviation (DGCA) for further clearances.

"AirAsia will now have to take necessary licence etc. from DGCA," the official added.

This would be the first entry of a foreign carrier in the domestic aviation sector after the liberalisation of FDI policy in September last year.

AirAsia is looking to start flying from this year-end with 3-4 planes and an initial investment of about USD 50 million by the Malaysian budget carrier.

The proposed joint venture will operate from Chennai and will focus on providing domestic connectivity to tier-ii and tier-iii cities.

As per current rules, a carrier must complete five years of domestic operations before becoming eligible for starting overseas flights.

Tata Sons, the holding company of the USD 100 billion salt-to-software conglomerate, will hold 30 per cent in the joint venture but will not have any operating role in the airline.

This will mark the return of Tatas to aviation sector. State-owned Air India had grown out of Tata Airlines, which began flights in 1932.

AirAsia, through its operations based in Thailand and Malaysia, flies to Chennai, Bangalore, Kochi, Tiruchirappalli and Kolkata in addition to 20 countries.

AirAsia, Tatas and Hindustan Aviation of Bhatias have signed a partnership agreement for the venture.

Air Asia has made the move to invest even as Etihad and Jet Airways continue to work towards finalising a deal for the Gulf carrier to invest in Jet.

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Agencies
June 15,2020

Nuapada, Jun 15: In a shocking incident, a 70-year-old elderly woman had to drag her 100-year-old bedridden mother on a cot to the nearby bank to withdraw pension money of Rs 1,500.

The incident came to light after a video of the woman dragging her bedridden mother on a cot to a bank in Odisha's Nuapada district went viral on social media.

The woman from Bargaon village dragged her mother on the cot after the bank official allegedly asked for physical verification. The incident took place on June 9.

"I went to the bank several times in last three months and requested the bank official to release the pension amount. However, the official informed that they would release the pension if I bring my mother to the branch," said Punjimati Dei.

Bank manager Ajit Pradhan allegedly asked Dei to bring her bedridden mother Labhe Baghel to the bank.

Her mother is an account holder under Jan Dhan Yojana of the Central government.

The Centre had announced Rs 500 monthly assistance for women Jan Dhan bank account holders from April to June in view of the COVID-19 situation.

A district administration official informed that the woman reached the bank with her mother before the manager could visit her home for the verification.

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Agencies
March 22,2020

New Delhi, Mar 22: The central government on Sunday decided to suspend all metro train services across the country till March 31 in view of coronavirus outbreak.

In a message to managing directors of all metro train corporations, Union Housing and Urban Affairs Secretary Durga Shanker Mishra said this is being done in continuation of suspending metro services during 'Janta Curfew'.

"In view of the current global pandemic of this Corona Virus & for containing its further spread through inter-personal proximity, it has been decided to close down metro rail services on all operational networks across the country till 31 March 2020," Mishra tweeted.

In another tweet, he said by the act of social distancing, people can protect themselves and their dear ones, and win the fight against COVID-19.

India reported three more coronavirus deaths on Sunday, including the first casualty from Bihar, taking the toll to seven and the number of COVID-19 cases rose to 341, officials said.

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News Network
June 13,2020

Jun 13: The Congress on Saturday accused the BJP-led government of burdening the common man with high taxes on petrol and diesel and earning Rs 2.5 lakh crore since March 5.

Congress leader Kapil Sibal said while international crude oil prices have fallen and are at the lowest level in 15 years, yet petrol and diesel prices are skyrocketing and common people continue to suffer under the Modi dispensation.

He said instead of passing the benefit of lower crude prices to consumers, petrol and diesel prices were hiked for the seventh straight day on June 13.

"The government has earned as much as Rs 44,000 crore in the last six days due to hike in petrol, diesel prices. Since March 5, the government has earned as much as Rs 2.5 lakh crore by way of increasing petrol, diesel prices.

"If the government had even the slightest feelings for the common man, instead of benefitting the companies and the government, the prime minister would have helped the common man with reduced fuel prices," Sibal said at an online press conference.

According to a report by Care Ratings, he said the hike effectively meant that the Central government is collecting around 270 per cent taxes on the base price of petrol and 256 per cent in case of diesel.

The former union minister said petrol was selling at Rs 71.41 in Delhi on May 1, 2014, when international crude oil prices were USD 106.85, while on June 12, 2020, the price of petrol was Rs 75.16 when the crude oil was at USD 38.

He said central excise and VAT cumulatively account for 69 per cent of tax on fuel in India which is higher than anywhere else in the world. He said the tax of fuel in the US was 19 per cent, Japan 47 per cent, the UK 62 per cent, France 63 per cent and Germany 65 per cent.

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