Shri Hardeep S. Puri, Minister of State(I/C), Ministry of Civil Aviation in a Press Conference today informed that the newly constituted Air India Specific Alternative Mechanism (AISAM), headed by Hon’ble Home Minister and comprising of Union Ministers of Commerce & Industry, Finance & Corporate Affairs and Civil Aviation, as members, has approved the release of the Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EOI) from the Interested Bidders (IBs) for Strategic Disinvestment of Air India. He informed that the Government has released the PIM for seeking EOI for strategic disinvestment of Air India.
Addressing the Media, Shri Puri informed that Air India along with Air India Express has 146 aircraft in its fleet, 82 of which are owned by it; have worldwide bilateral rights and spread over domestic as well as international slots and added that During 2018-19, both Air India and Air India Express carried around 26.2 million passengers.
Air India and Air India Express have average aircraft age of 8 years which is among the youngest fleet. 27 Boeing-787 with Air India are as young as 5 years and 27 Airbus-320 Neo (CFM engines) are as young as 2 years. Air India and Air India Express have almost 51% share of the international traffic to/from India among Indian carriers and 18 % share including global carriers (ex-India).
Pointing out that Air India has coverage of 98 destinations with 56 domestic and 42 international destinations, Shri Puri informed that Air India offers 75 additional destinations through its secondary network of code share operations.
Air India and Air India Express have a combined revenue of Rs.30,632 crore in 2018-19, which is the highest among Indian carriers. Air India + Air India Express employee cost as % of revenue is about 11% which is comparable to Indian carriers and much lower to International carriers. AISATS provides in-house ground handling facilities at key metro airports – Delhi, Bengaluru, Hyderabad, Thiruvananthapuram and Mangalore.
Even after infusion of about Rs.30,500 crore as per Turn Around Plan since 2012, Air India has been running into losses year after year. Due to its accumulated debt of about Rs.60,000 crore, its financial position is in a very fragile condition.
A few of the key decisive parameters in the current PIM include: Transfer of management control and sale of 100% shares of Air India along with Air India’s 100% stake in its subsidiary, Air India Express Limited and 50% stake in joint venture, AISATS.
Freezing of Debt in Air India at Rs.23,286.5 crore which is approximately equivalent to the Written Down Value (WDV) of combined assets of Air India and Air India Express. The liabilities to be retained in Air India will be equal to certain current and non-current assets. Considering the combined figures as on March 31, 2019 the liabilities retained would be Rs 8771.5 crore.
The remaining debt and liabilities of Air India and Air India Express will be allocated to SPV (Air India Assets Holding Limited). The contingent liabilities related to statutory dues and Government dues will be indemnified by Government.
The contingent liabilities due to retired employees will be clarified at the RFP stage. Corporate guarantees given by Air India on behalf of Alliance Air will not be passed to new investor.
Land and buildings at Delhi, Mumbai airports and Corporate Office which are core assets for running the airline will be given to new investor on right to use basis for a limited period.
Government has committed to pay certain employees’ related dues before closing of transaction. The bidding structure on forming the Consortium has been eased as compared to last round of bidding.
The financial capability of prospective investors has also been made more attractive such as lowering of Net Worth criteria to Rs. 3,500 crore, and Net Worth qualification of investor based on strength of its Affiliate.
Individual member must have at least 10% share in the consortium i.e. a net worth or ACI of Rs.350 crore. The scheduled Indian commercial operator(s), however, with zero or a negative net worth are eligible to be a member of the consortium provided they have shareholding of <=51%.
The Air India with new investor will continue using the ‘Air India’ brand.
Employees related issues The total employee strength of the two companies is 17,984, out of which 9617 are permanent employees. Approx 36% of the permanent employee will be retiring in next 5 years. AISATS has 11958 contractual employees and 399 employees are deployed from Air India and other subsidiary.
Employees’ dues of about Rs.1383.70 crore on account of Justice Dharmadhikari Commission’s recommendation on past arrears will be paid by the Air India Assets Holding Limited (AIAHL) – the SPV before closing of the proposed transaction.
Provision for Rs.207.63 crore towards wage arrears accruable to employees working on Narrow Body fleet has been made in the books of account of Air India. The treatment of this liability may be provided at RFP stage. 3% of equity shares of Air India to be offered to the permanent employees of Air India as ESOP.
Union Minister of State for Finance & Corporate Affairs, Shri Anurag Singh Thakur has expressed confidence that with concerted efforts of the Central Board of Indirect Taxes & Customs (CBIC), India would further improve its position in ranking for Ease of Doing Business.
While addressing at Investiture Ceremony & International Customs Day 2020 here today, Shri Thakur said that India has risen in the Ease of Doing Business Rankings by being transparent, accountable and logical. This rise in rankings is due to the efforts of the officers of CBIC as Trading Across Borders is one of the key parameter of the rankings and it is credit to the efforts of CBIC that this key parameter has performed.
While stressing on harnessing technology for faster resolution, the Minister said that technology plays an important role by ensuring efficiency, transparency and accountability. Shri Thakur appreciated the response of Custom officials to dynamics of changing ecosystem worldwide. Customs are doing well because they work as a team besides adapting and evolving, especially in a large and diverse country like India.
He said the 2020 theme of International Customs Organisation itself highlights the changing nature and role of customs today. The theme of International Customs Day, celebrated on 26th January every year, is dedicated to the contribution of Customs towards a sustainable future where social, economic, health and environmental needs are at the heart of our actions, with the slogan “Customs fostering Sustainability for People, Prosperity and the Planet”.
India-Brazil share close Multi-Faceted Relationship – Piyush Goyal
Strategic Partnership with Brazil based on common Global Vision, Democratic Values and Welfare of Citizens – Piyush Goyal Commerce and Industry Minister addresses India-Brazil Business Forum Posted On: 27 JAN 2020 3:49PM by PIB Delhi
The visit of the President of the Federative Republic of Brazil, Jair Bolsonaro, is a sign of the growing importance of the India – Brazil bilateral partnership said Union Minister of Commerce and Industry & Railways, Piyush Goyal, during his address at the inaugural session of the India-Brazil Business Forum held in New Delhi today.
He hoped that as Brazil is one of the most important trading partners of India in the entire LAC (Latin America and Caribbean) region trade between the two countries will grow to USD 15 billion by 2022.
The 15 MoUs signed during the visit of the President of Brazil shows the power of democracy, demography, leadership, the talent pool available in India, India’s market and the aspirations of one billion Indian citizens for a better life said the Commerce and Industry Minister. The MoUs of cooperation that have been signed during the presidential visit on investments, trade facilitation, social security, agriculture, defence and double taxation makes this the most productive visit by a Brazilian Head of State.
Commerce and Industry Minister hoped that investments will also grow in the sectors of clean energy, startups, railways and creation of value chains between India and Brazil where goods may be semi assembled in one country and finished in another. Piyush Goyal informed that the entire Indian Railway will be fully electrified by 2024 and by 2030 the railway network in India will run completely on clean energy with zero emission.
Commerce and Industry Minister welcomed the announcement made during the visit of President of Brazil to India for visa free travel between the two countries. He added that visitors for business and tourism between two countries will benefit greatly from this.
Commerce and Industry Minister also urged that the India – Brazil Business Leader’s Forum may be activated and reconstituted to make it more relevant and contemporary to businesses in both countries.
Commerce and Industry Minister hoped that India’s services in wellness sector like Yoga and Ayurveda will further grow as Brazil has a strong community of Yoga and Ayurveda practitioners. Brazil has an association of Ayurveda (ABRA), a nonprofit association with offices in 9 states of Brazil and members all over Brazil and the third International Congress on Ayurveda was held from 12 to 15 March 2018 in Rio de Janeiro. The conference saw participation of more than 4000 delegates, including many from India.
India and Brazil share close relationship at the bilateral level as well as plurilateral fora like BRICS, BASIC, G-20, IBSA, International Solar Alliance and in larger multilateral bodies like UN, UNESCO and WIPO stated Commerce and Industry Minister.
He further said that the decade long bilateral strategic partnership is based on a common global vision shared democratic values and a commitment to foster economic growth with social inclusion for the welfare of the people of both countries.
Queen_Prbhavatigupta About findings and their significance: An oval-shaped sealing has been traced. It belongs to the period when Prabhavatigupta was the queen of the Vakataka dynasty. It bears her name in the Brahmi script, along with the depiction of a conch. The presence of the conch, scholars say, is a sign of the Vaishnava affiliation that the Guptas held.
A copper plate issued by Queen Prabhavatigupta has also been found. It starts with a genealogy of the Guptas, mentioning the Queen’s grandfather Samudragupta and her father Chandragupta II.
Since the Vakataka people traded with Iran and beyond through the Mediterranean Sea, scholars suggest that these sealings could have been used as an official royal permission issued from the capital city. Besides, these were used on documents that sought mandatory royal permissions.
Who was Queen Prabhavatigupta? The Vakataka rulers were known to have forged several matrimonial alliances with other dynasties of their times. One of the key alliances was with Prabhavatigupta of the mighty Gupta dynasty, which was then ruling north India.
After marrying Vakataka king Rudrasena II, Prabhavatigupta enjoyed the position of Chief Queen.
Scholars say Queen Prabhavatigupta was among a handful of women rulers in India to have reigned over any kingdom during ancient times. Also, there had been no evidence so far of any successor female ruler within the Vakataka dynasty, the researchers suggest.
She ruled for about 10 years until her son Pravarasena II She had a pivotal role in propagation of Vaishnava practices in the Vidarbha region of Maharashtra.
About Vakataka dynasty: Ruled parts of Central and South India between the third and fifth centuries. Rule extended from the southern edges of Malwa and Gujarat in the north to the Tungabhadra River in the south as well as from the Arabian Sea in the west to the edges of Chhattisgarh in the east.
They were the most important successors of the Satavahanas in the Deccan and contemporaneous with the Guptas in northern India. They were Shaivite rulers.
Nagardhan served as a capital of the Vakataka kingdom. The elephant god was a commonly worshipped deity in those times.
Animal rearing was one of the main occupations. Remains of seven species of domestic animals — cattle, goat, sheep, pig, cat, horse and fowl — have been traced.
The rock-cut Buddhist viharas and chaityas of Ajanta Caves (a UNESCO World Heritage Site) were built under the patronage of Vakataka emperor, Harishena.
Guest of Honour: Brazilian President Jair Bolsonaro. Bolsonaro is the third Brazilian President to be invited as Chief Guest for India’s Republic Day Parade.
Before him, India hosted President Fernando Henrique Cardoso in 1996 and President Luiz Inacio Lula da Silva in 2004, as chief guests for the Republic Day Parade.
Why January 26th? The Constitution came into effect on January 26, 1950, a date specially chosen to coincide with the anniversary of ‘Purna Swaraj Diwas’. January 26, 1930 was marked as ‘Purna Swaraj Diwas’, or the day the nation would attain complete freedom from its colonisers by the Congress.
The members of the drafting committee felt that the birth of the constitution should be observed on a day that held some significance in their fight for independence.
When India was ultimately granted freedom by the British in 1947, but on August 15 and not January 26, the date was instead assigned to celebrating India’s Republic Day.
This was the day the Indian Independence Act was consequently repealed and India was established as a democratic republic, no longer a dominion of the British Crown.
What was showcased at the parade? Dhanush Artillery Gun. Rafale and Tejas aircrafts. Anti-Satellite Weapons System (ASAT).
Gujarat – Rani ki Vav – Jal Mandir. Meghalaya – Living Root Bridge. Punjab – 550th Birth Anniversary of Guru Nanak Dev.
The court also asked the poll body to come up with a framework within one week, which can contribute towards the larger issue of containing the entry of candidates having criminal background into politics.
Need for: Fielding candidates with criminal antecedents has been one of the key concerns in the recent elections. The extent of this can be understood from the fact that according to an analysis by New Delhi based Association of Democratic Reforms (ADR), nearly half the MPs of the 17th Lok Sabha elected in May last year had declared criminal cases against them.
Out of the 539 MPs which ADR analysed, 233 had declared criminal cases against them which was an increase of 44% in the number of MPs with declared criminal cases since 2009.
In its analysis released in May last year, ADR added that out of the 542 MPs analysed during Lok Sabha polls in 2014, 34% or 185 had declared criminal cases against themselves while out of 543 in 2009, 30% or 162 had declared criminal cases against themselves.
What does the RPA say on this? Currently, under the Representation of Peoples (RP) Act, lawmakers cannot contest elections only after their conviction in a criminal case.
Section 8 of the Representation of the People (RP) Act, 1951 disqualifies a person convicted with a sentence of two years or more from contesting elections. But those under trial continued to be eligible to contest elections. The Lily Thomas case (2013), however, ended this unfair advantage.
Efforts by SC in this regard: The SC has repeatedly expressed concern about the purity of legislatures. In 2002, it made it obligatory for all candidates to file an affidavit before the returning officer, disclosing criminal cases pending against them. The famous order to introduce NOTA was intended to make political parties think before giving tickets to the tainted.
In its landmark judgmentof March 2014, the SC accepted the urgent need for cleansing politics of criminalisation and directed all subordinate courts to decide on cases involving legislators within a year, or give reasons for not doing so to the chief justice of the high court.
Main reasons for Criminalization: Corruption Vote bank. Lack of governance. What is the way out?
There are three possible options. One, political parties should themselves refuse tickets to the tainted. Two, the RP Act should be amended to debar persons against whom cases of a heinous nature are pending from contesting elections. Three, fast-track courts should decide the cases of tainted legislators quickly.
Other suggested measure to curb criminalization of politics: Bringing greater transparency in campaign financing is going to make it less attractive for political parties to involve gangsters. The Election Commission of India (ECI) should have the power to audit the financial accounts of political parties.
Broader governance will have to improve for voters to reduce the reliance on criminal politicians. The Election Commission must take adequate measures to break the nexus between the criminals and the politicians.
Conclusion: Corruption and criminalisation of politics is hitting at the roots of democracy. Therefore, Parliament must take steps urgently to curb this menace. Candidates and political parties must give wide publicity to criminal cases pending against her/him in the local media, both print and electronic, after s/he files nomination to contest elections.