Serpentine airport queues to continue for at least next 3 more years: Report

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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Agencies
March 14,2020

New Delhi, Mar 14: The central government on Saturday declared COVID-19 as a national 'disaster' and announced to provide ex-gratia relief of Rs 4 lakh to the families who died of the virus.

The Ministry of Home Affairs in a letter to states and union territories stated: "Keeping in view that spread of COVID-19 virus in India the declaration of it as pandemic by World Health Organisation, the Central government has decided to treat it as a notified disaster and announced to provide assistance under State Disaster Response Fund (SDRF)."

The Centre said that cost of hospitalization for managing COVID-19 patient would be at the rates fixed by the state governments. The state government can use SDRF found for providing temporary accommodation, food, clothing and medical care for people affected and sheltered in quarantine camps, other than home quarantine, or for cluster containment operations.

The state executive committee will decide the number of quarantine camps, their duration and the number of persons in such camps. "Period can be extended by the committee beyond the prescribed limit subject to condition that expenditure on this account should not exceed 25 percent of SDRF allocation for the year," the Ministry of Home Affairs notification stated.

The cost of consumables for sample collection would be taken from the funds which can be sued to support for checking, screening and contact tracing.

Further, funds can also be withdrawn for setting up additional testing laboratories within the government set up. The state has also to bear the cost of personal protection equipment for healthcare, municipal, police and fire authorities. Further SDRF money can also be used for procuring thermal scanners and ventilation and other necessary equipment.

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News Network
July 25,2020

New Delhi, Jul 25: Congress leader Priyanka Gandhi Vadra on Saturday attacked the Yogi Adityanath government over its handling of the Covid-19 crisis, saying that at a time when there is an "explosive" rise in cases, the state dispensation's "no test is equal to no corona" policy can lead to a "more frightening situation".

In a letter to the Uttar Pradesh chief minister, the Congress general secretary said that the situation is getting serious and the battle against the pandemic cannot be fought just by publicity and managing news.

Priyanka Gandhi said she hopes the chief minister will take "big and effective" steps that will assure people that the government is committed to protect their lives and they will not be left to God for protection.

"By showing the fear of coronavirus, corruption is thriving. If this is not reined in, the battle against coronavirus will turn into a disaster," Priyanka Gandhi said.

Noting that 2,500 cases of coronavirus were reported in UP on Friday, she said almost all the metros were flooded with Covid-19 cases, but now even the villages were not unaffected by its spread.

"Quarantine centres in UP are in a pathetic state. In some places, the situation is so bad, that people are fearing mismanagement more than the coronavirus. Because of such a scenario, they are not stepping out of their homes for getting tested," Priyanka Gandhi said.

"This is a major failure of the government," she asserted.

The state government by believing in the "no test = no corona" mantra has adopted a low testing policy, she alleged in the letter written in Hindi.

"There is an explosive rise in Covid-19 cases. Till testing will not be increased in a transparent manner, the fight against the pandemic will be incomplete and the situation can become more frightening," she said.

"Your government claimed that there is provision for 1.5 lakh beds, but with only about 20,000 active infected cases, there is a scampering for beds," she said.

If there is a huge crowd in front of the hospitals, then why is the UP government not constructing temporary hospitals on the lines of those set up in Mumbai and Delhi, Priyanka Gandhi asked.

Availing medical facility is the fundamental right of every citizen, she asserted.

"The prime minister is a Member of Parliament from Varanasi, the defence minister is from Lucknow, many other Union ministers are from UP. Why can't temporary hospitals be opened in Varanasi, Lucknow, Agra etc." Priyanka Gandhi asked.

She suggested that temporary hospitals can be operated by the Defence Research and Development Organisation (DRDO), the Army and the paramilitary, or if need be, the DRDO hospital can be brought to Lucknow.

Also, central facilities set up in Delhi can also be used for border districts, Priyanka Gandhi said, adding that their utilisation is not being maximised there.

Noting that home isolation was a good step, she said it should not be implemented in haste.

Informed decisions should be taken on key matters related to home isolation like what will be the arrangement for monitoring patients, who needs to be informed if the patient's condition worsens and what will the medical facilities cost in home isolation, she said.

What will be the arrangement for checking the temperature and oxygen level of the patients in home isolation, she further asked in the letter.

The government should do a complete mapping of it and give complete information at the local level to the public, Priyanka Gandhi said.

The Congress general secretary said that she realises, that often the state government feels that the Congress' suggestions are given only from a political point of view.

"This was evident from the response of your government while we were trying to get buses for UP workers who were walking home," she said.

"I want to assure you once again that protecting the health and life of the people of Uttar Pradesh is our biggest sentiment at this time. We are continuously striving with constructive support and a spirit of service," she said in the letter.

At this time when the pandemic is growing rapidly, the Congress stands with the people of UP and is ready to give full support to the state government, she said.

Tightening its grip over Uttar Pradesh, Covid-19 claimed a record 50 lives in the state on Friday as the deadly virus infected 2,667 people more in the largest single-day spike till date.

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News Network
May 4,2020

New Delhi, May 4: The country's manufacturing sector activity witnessed unprecedented contraction in April amid national lockdown restrictions, following which new business orders collapsed at a record pace and firms sharply reduced their staff numbers, a monthly survey said on Monday.

The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to 27.4 in April, from 51.8 in March, reflecting the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago.
The index slipped into contraction mode, after remaining in the growth territory for 32 consecutive months.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Amid widespread business closures, demand conditions were severely hampered in April. New orders fell for the first time in two-and-a-half years and at the sharpest rate in the survey's history, far outpacing that seen during the global financial crisis, the survey said.

"After making it through March relatively unscathed, the Indian manufacturing sector felt the full force of the coronavirus pandemic in April," said Eliot Kerr, Economist at IHS Markit.
Panellists attributed lower production to temporary factory closures that were triggered by restrictive measures to limit the spread of COVID-19.

Export orders also witnessed a sharp decline. Following the first reduction since October 2017 during March, foreign sales fell at a quicker rate in April. "In fact, the rate of decline accelerated to the fastest since the series began over 15 years ago," the survey said.

On the employment front, deteriorating demand conditions saw manufacturers drastically cut back staff numbers in April. The reduction in employment was the quickest in the survey's history.

"In the latest survey period, record contractions in output, new orders and employment pointed to a severe deterioration in demand conditions.
“Meanwhile, there was evidence of unprecedented supply-side disruption, with input delivery times lengthening to the greatest extent since data collection began in March 2005," Kerr said.

On the prices front, both input costs and output prices were lowered markedly as suppliers and manufacturers themselves offered discounts in an attempt to secure orders.

Going ahead, sentiment regarding the 12-month outlook for production ticked up from March's recent low on hopes that demand will rebound once the COVID-19 threat has diminished and lockdown restrictions eased.

"There was a hint of positivity when looking at firms' 12-month outlooks, with sentiment towards future activity rebounding from March's record low. That said, the degree of optimism remained well below the historical average," Kerr said.

In India, the death toll due to COVID-19 rose to 1,373 and the number of cases climbed to 42,533 as on Monday, according to the health ministry.

Meanwhile, the coronavirus-induced lockdown has been extended beyond May 4, for another two weeks in the country.

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