Jet-Etihad deal gets CCI clearance; moves closer to finality

November 13, 2013

Jet-EtihadNew Delhi, Nov 13: Paving way for closure of long- pending Jet-Etihad deal, fair trade regulator CCI on Tuesday approved the proposed acquisition of 24 % stake in the Naresh Goyal-led Indian carrier by Abu Dhabi-based airline.

Etihad is acquiring this stake for Rs 2,058 crore in a deal that was announced in April this year, becoming the first-ever FDI (Foreign Direct Investment) in an Indian carrier by an overseas airline.

However, the deal has been stuck for months for want of various regulatory approvals. The clearance by the Competition Commission of India (CCI), whose nod is necessary for any major merger and acquisition deal involving an Indian entity, was among the last regulatory approvals for this transaction.

Among others, the deal has been already cleared by capital markets regulator Sebi, Foreign Investment Promotion Board (FIPB) and Cabinet Committee of Economic Affairs (CCEA).

The deal had to be revised after Sebi raised objections over a previous structure that involved Etihad possibly getting larger control over Jet Airways, which is a publicly listed company in India.

"Considering the facts on record and the details provided in the notice (under relevant section of the Competition Act)... the Commission is of the opinion that the proposed combination is not likely to have appreciable adverse effect on competition in India and therefore, the Commission hereby approves the same," CCI said in an order.

The majority order, passed by CCI chairman Ashok Chawla and four members, said that the approval can be revoked if information provided by Jet and Etihad is found to be incorrect at any time.

However, one CCI member passed a minority order dissenting with the majority view and said the deal could have adverse impact on competition in international air travel market.

Dissenting member Anurag Goel said he was "of the prima facie opinion that the proposed combination is likely to cause an appreciable adverse effect on competition within the market of international air passenger transportation from and to India."

"A notice may, therefore, be issued to show cause to the parties to the combination calling upon them to respond within thirty days of the receipt of the notice, as to why investigation in respect of the proposed combination should not be conducted," his dissent order said.

The Commission said the approval is granted on the basis of "underlying competition assessment" based on information provided by the parties in their notice, which has been modified and supplemented from time to time.

"This approval should not be construed as immunity in any manner from subsequent proceedings before the Commission for violations of other provisions of the (Competition) Act. It is incumbent upon the parties to ensure that this ex-ante approval does not lead to ex-post violation of the provisions of the Act," CCI said.

The regulator also noted that this "approval however, shall have no bearing on proceedings under Section 43A of the Act". Under this section, CCI has powers to slap penalties for non-furnishing of information on M&A deals.

While Jet and Etihad were said to be in discussions for a long time, they had formally announced their proposed deal in April this year.

However, the original deal had hit several regulatory road blocks, primarily on concerns that it could lead to a foreign airline getting control over an Indian company in a sensitive sector like aviation and Jet's public shareholders were being given a raw deal.

Subsequently, the deal was restructured to address the apprehensions of various regulators and other government bodies, such as Sebi, CCI and FIPB.

After the deal, Etihad would have 24 % stake in Jet Airways, main promoter Naresh Goyal would have 51 % and public shareholders would have remaining 25 %.

Besides, Etihad's control over board matters and other business decisions was also curtailed in revised deal.

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News Network
April 23,2020

Washington, Apr 23: Air pollution over northern India has plummeted to a 20-year-low for this time of the year, according to satellite data published by US space agency National Aeronautics and Space Administration (NASA).
The US space agency's satellite sensors observed aerosol levels at a 20-year low post the countrywide lockdown, implemented to slow the spread of the novel coronavirus.

"We knew we would see changes in atmospheric composition in many places during the lockdown," said Pawan Gupta, a Universities Space Research Association (USRA) scientist at NASA''s Marshall Space Flight Center. "But I have never seen aerosol values so low in the Indo-Gangetic Plain at this time of year," added Mr Gupta.

Acting Assistant Secretary of State for South and Central Asia Alice G Wells tweeted, "These images from NASA were taken each spring starting in 2016 and show a 20-year low in airborne particle levels over India. When India and the world are ready to work and travel again, let's not forget that collaborative action can result in cleaner air."

The data published with maps show aerosol optical depth (AOD) in 2020 compared to the average for 2016-2019. Aerosol optical depth is a measure of how light is absorbed or reflected by airborne particles as it travels through the atmosphere.

If aerosols are concentrated near the surface, an optical depth of 1 or above indicates very hazy conditions. An optical depth, or thickness, of less than 0.1 over the entire atmospheric vertical column is considered "clean." The data were retrieved by the Moderate Resolution Imaging Spectroradiometer (MODIS) on NASA's Terra satellite.

In the first few days of the lockdown, it was difficult to observe a change in the pollution signature. "We saw an aerosol decrease in the first week of the shutdown, but that was due to a combination of rain and the lockdown," said Mr Gupta.

Around March 27, heavy rain poured over vast areas of northern India and helped clear the air of aerosols. Aerosol concentrations usually increase again after such heavy precipitation.

"After the rainfall, I was really impressed that aerosol levels did not go up and return to normal. We saw a gradual decrease and things have been staying at the level we might expect without anthropogenic emissions," Mr Gupta said.

On March 25, the Indian government placed its 1.3 billion citizens under a strict lockdown to reduce the spread of COVID-19. The countrywide mandate decreased activity at factories and severely reduced car, bus, truck and airplane traffic. Every year, aerosols from anthropogenic (human-made) sources contribute to unhealthy levels of air pollution in many Indian cities.

Aerosols are tiny solid and liquid particles suspended in the air that reduce visibility and can damage the human lungs and heart.

In southern India though, the story is a little hazier. Satellite data show aerosol levels have not yet decreased to the same extent. In fact, levels seem to be slightly higher than in the past four years. The reasons are unclear but could be related to recent weather patterns, agricultural fires, winds or other factors.

"This a model scientific experiment," Robert Levy, program leader for NASA's MODIS aerosol products, said about the lockdown and its effects on pollution.

"We have a unique opportunity to learn how the atmosphere reacts to sharp and sudden reductions in emissions from certain sectors. This can help us separate how natural and human sources of aerosols affect the atmosphere," Mr Levy added.

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News Network
June 23,2020

New Delhi, Jun 23: The meeting between Indian Army's 14 Corps Commander Lt Gen Harinder Singh and his Chinese counterpart got over after around 11 hours, sources said.

"Today's meeting between the Corps Commander-level officers of India and China is over. The meeting which started at 11:30 am went on for around 11 hours. More details awaited," sources said.

The meeting started at around 11:30 am at Moldo on the Chinese side of Line of Actual Control (LAC) opposite Chushul to defuse the tensions in Eastern Ladakh sector due to Chinese military build-up, the sources said.

This is the second meeting between the two corps commanders. They had met on June 6 and had agreed to disengage at multiple locations. India had asked the Chinese side to go back to pre-May 4 military positions along the LAC.

The Chinese side had not given any response to the Indian proposal and not even shown intent on the ground to withdraw troops from rear positions where they have amassed over 10,000 troops.

India is also likely to discuss the change in rules of engagement on the LAC where the forces have been empowered to use firearms in extraordinary circumstances, sources had said.

They said India will also ask China to honour the commitment given during June 6 talks to disengage in the Galwan valley completely and other places.

The build-up of Chinese air assets including strategic bombers by the PLA Air Force in fields near Indian territory close to Ladakh is also likely to figure in discussions.

India and China have been involved in talks to ease the ongoing border tensions since last month.

However, last week as many as 20 Indian soldiers lost their lives in the face-off in the Galwan Valley after an attempt by the Chinese troops to unilaterally change the status quo during the de-escalation in eastern Ladakh.

The Indian intercepts have revealed that the Chinese side suffered 43 casualties including dead and seriously injured in the violent clash.

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February 3,2020

Mumbai, Feb 3: Maharashtra Chief Minister Uddhav Thackeray, whose party severed ties with the BJP after the state elections, on Monday said that if somebody breaks a promise, "pain and anger is obvious".

"No, I did not get any shock," Thackeray said in an interview with Shiv Sena mouthpiece Saamana while talking about forming an alliance with NCP and Congress, and becoming the Maharashtra Chief Minister.

"I am a son of Shiv Sena Pramukh (Balasaheb Thackeray), several people tried to give a shock to me but they didn't succeed. This is a field where you have to accept in the beginning that there will be a bit pushing and pulling," Thackeray said.

He added that accepting the Chief Minister's post was not a shock for him and neither was it his "dream at any point of time".

"But I can say one thing for sure that I had decided to go to any level to fulfil the promise which I made to Balasaheb Thackeray. I want to further clear it that me becoming Chief Minister is not the fulfilling of the promise made to Shiv Sena Pramukh but it's just a step towards that. I will fulfil every promise which I made to my father," Uddhav Thackeray said.

"There are several types of shock. Did people like it or not, it is the important part. I have spoken on this issue (alliance with NCP and Congress) several times and even people have understood this. Making promises and keeping them are two different things. If someone breaks a promise, pain and anger is obvious," he added.

The Chief Minister said that he does not know if BJP "has come out their shock till now or not."

"But I have to say if they had kept their promise what would have happened, what a big deal had I asked for? Did I ask for stars and moon? I only asked for what was decided before Lok Sabha polls, when we decided seat distribution," he said.

He further said, "Maharashtra and the country are watching (who betrayed/shocked whom), I don't need to say much on this."

Soon after the Assembly election results, Shiv Sena demanded rotation of the chief minister's post and equal power-sharing in the state government, which was rejected by then ally BJP. The weeks of political stalemate led to the imposition of President's rule on November 13.

Firm on its demands, Sena, the second-largest party in the state, did not hesitate to cobble up with the ideological opponents -- NCP and Congress -- and was given the chief minister's post.

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