Govt permits NRIs to own up to 100% stake in Air India

News Network
March 4, 2020

New Delhi, Mar 4: The government on Wednesday permitted NRIs to own up to 100 per cent stake in disinvestment-bound Air India.

The decision comes at a time when the government is looking to sell 100 per cent stake sale in the national carrier.

Union minister Prakash Javadekar said the Cabinet has approved allowing Non-Residents Indians (NRIs) to hold up to 100 per cent stake in Air India.

Allowing 100 per cent investment by Non-Resident Indians (NRIs) in the carrier would also not be in violation of SOEC norms. NRI investments would be treated as domestic investments.

Under the Substantial Ownership and Effective Control (SOEC) framework, which is followed in the airline industry globally, a carrier that flies overseas from a particular country should be substantially owned by that country's government or its nationals.

Currently, NRIs can acquire only 49 per cent in Air India. Foreign Direct Investment (FDI) in the airline is also 49 per cent through the government approval route.

As per the existing norms, 100 per cent FDI is permitted in scheduled domestic carriers, subject to certain conditions, including that it would not be applicable for overseas airlines.

In the case of scheduled airlines, 49 per cent FDI is permitted through automatic approval route and any such investment beyond that level requires government nod.

On January 27, the government came out witha Preliminary Information Memorandum (PIM) for Air India disinvestment. It has proposed selling 100 per cent stake in Air India along with budget airline Air India Express and the national carrier's 50 per cent stake in AISATS, an equal joint venture with Singapore Airlines.

Under the latest disinvestment plan, the successful bidder would have to take over only debt worth Rs 23,286.5 crore while the liabilities would be decided depending on current assets at the time of closing of the transaction.

This is the second attempt by the government in as many years to divest Air India, which has been in the red for long.

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News Network
June 30,2020

New Delhi, Jun 30: The Home Ministry on Monday issued guidelines for 'Unlock 2.0' phase across country between July 1 and July 31. The report stated that COVID-19 lockdown shall continue to remain in force in containment zones till July 31. In containment zones, only essential activities to be allowed. The government's guidelines come on a day when Maharashtra and Tamil Nadu extended lockdowns in their respective states to July 31.

Unlock 2.0 Guidelines:

•   Schools, colleges, educational institutes wil remain closed till July 31. Online/distance learning shall continue to be permitted and shall be encouraged

•   Lockdown shall continue to remain in force in containment zones till July 31st.  In containment zones, only essential activities to be allowed.

•   Night Curfew shall continue to remain in force, between 10:00 pm and 5:00 am, except for essential activities and other relaxations.

•   Social/ political/ sports/ entertainment/ academic/ cultural/ religious functions and other large congregations remain prohibited.

•   International air travel, except as allowed by MHA, will also remain barred.

•   Shops depending upon their area, can have more than 5 persons at a time. However, they have to maintain adequate physical distance.

•   Training institutions of the central and state governments will be allowed to function with effect from July 15 and SOP in this regard will be issued by the Department of Personnel and Training.

Meanwhile, Union Home Secretary Ajay Bhalla wrote to Chief Secretaries of all states and UTs, urging them to ensure compliance of Unlock 2 guidelines and direct all concerned authorities for their strict implementation.

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News Network
March 10,2020

Thiruvananthapuram, Mar 10: Senior Congress leader Shashi Tharoor on monday thanked PM Narendra Modi  for extending birthday wishes to him in malayalam.

"Thank you, Prime Minister Narendra Modi, for this elaborate birthday greeting in shudh sahitya Malayalam! Am touched by your thoughtfulness," Tharoor tweeted with a picture of the letter from Modi.

In another tweet, the Congress MP also posted its translation, that reads,

Tharoor, who is an MP from Thiruvananthapuram, turned 64 on march 9.

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SmR
 - 
Tuesday, 10 Mar 2020

Is he next Scindia waiting to board the BJP ship?

 

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Agencies
July 21,2020

The Retailers Association of India (RAI) has said that ad hoc lockdowns by state governments are impacting the businesses of already-stressed retailers, along with hurting the economic revival of the country.

In a statement, the body of the organised retail industry said that the long road to recovery for the Indian retail industry continues to meet stumbling blocks with numerous restrictions being imposed at the state and local levels.

"Total lockdowns in some places and limited operational hours and days in several others are creating setbacks for retailers as the already stressed retail businesses are getting further interrupted and in turn, dampening consumer sentiment," it said.

According to RAI, although the intentions are that of citizen safety and social distancing, the recent instances of local lockdowns and ad hoc restrictions being imposed in Uttar Pradesh, Maharashtra, Andhra Pradesh and Karnataka are having a distressing impact on retail businesses.

Retailers are already facing huge setbacks in terms of payment of wages and rentals due to very low sales of about 40 per cent as compared to last year, thanks to the extended lockdown, it said.

Contesting the restrictions on operating hours, Sandeep Kataria, CEO, Bata India said: "Restricted shopping time can lead to unnecessary overcrowding of stores, which is unfavourable towards the personal safety of both store staff and customers. Longer operational hours will support recovery for retailers as well as help adhering to social distancing norms."

Arvind Mediratta, MD and CEO, METRO Cash & Carry India said that these lockdowns will create severe inconvenience for all citizens as they also bar operations of food and grocery retail and wholesale stores.

Such hastily-implemented decisions by states undermine investor confidence and would come in the way of making the country "aatmanirbhar" or self-reliant, he said.

Voicing the concerns of retailers, the RAI has submitted representations to various state and local authorities that puts forth recommendations to get businesses and life of consumers on the track to recovery.

It has said that authorities should mandatorily allow essential shops including kiranas, general trade shops, supermarkets, hypermarkets and wholesalers to operate every day of the week until 9 p.m. to cater to the daily needs of the customers.

It has also sought ensuring uniform and regular opening of all categories of retail for full working hours while following stringent hygiene practices and adhering to social distancing norms. This will help avoid overcrowding outside stores as demand will get distributed over all days of the week, it said.

The industry body has also asked the local authorities to open malls in all states. Malls can ensure a safe shopping experience wherein safety measures are taken by both, the mall authorities and the retailers, it said.

Kumar Rajagopalan, CEO, RAI, said: "The need of the hour is concerted efforts by all stakeholders. While retailers are doing their bit by following stringent hygiene practices, the policymakers too need to support to ensure economic revival across the country. Consumption is important for the country and supports the business environment."

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