BackNeed to know | Airlines seek nod to import fuel directly
Need to know | Airlines seek nod to import fuel directly
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New Delhi: With the aim to escape paying sales tax that can be as high as 30% on aviation fuel that is levied by states, domestic airlines are examinng the possibility of importing fuel directly.
At a time jet fuel prices are falling, the Federation of Indian Airlines, or FIA, an airlines lobby, has sought permission from the Directorate General of Foreign Trade or DGFT to directly import jet fuel, a senior civil aviation ministry official, who did not wish to be identified, said on Tuesday. DGFT, on its part, has sought a no-objection certificate from the ministry of petroleum.
Currently, most of the fuel, which accounts for over 40% of an airline’s operating cost is supplied by public sector oil companies such as IndianOil Corp. Ltd and is levied state taxes ranging from 4% to 30%.
Airline companies now want to take advantage of rules that permit a bulk consumer to directly import fuel as long as it is for its own consumption and escape state governments taxation. This could amount to savings of 10% in operating costs, the same official said, adding, that while “theoretically" such an arrangement was permitted, it would be difficult logistically.
Reacting to this, low-fare carrier SpiceJet Ltd’s chief commercial officer Samyukth Sridharan said his airline has no plans to import jet fuel as of now because its current scale of operations will not justify the complex logistics that include huge storage tanks at airports where planes refuel. “Perhaps, some of the larger carriers (that) have been pursuing it, and they may be keen on it," he said.
— Tarun Shukla
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Japan bank Teri to sign climate pact today
Tokyo: The Japan Bank for International Cooperation and a New Delhi-based think tank will sign an agreement in Tokyo on Wednesday to cooperate in tackling climate change. Koji Tanami, the governor of the state- owned bank, and Rajendra Pachauri, who heads The Energy and Resources Institute (Teri), will take part in the signing ceremony, the bank said in an email.
— Bloomberg
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NHAI releases shortlist for 53 road projects
New Delhi:Highways regulator National Highways Authority of India, or NHAI, on Tuesday announced the shortlists of companies allowed to bid for 53 highway projects under the National Highway Development Programme, which envisages upgrading over 30,000km of national highways.
The authority announced the shortlists so that companies could decide which projects to continue bidding for, in order to comply with regulations that capped the number of projects a company could bid for.
The ministry of road transport had earlier asked the NHAI to restrict the number of projects companies can bid for within a two-month period, in an effort to break the impasse surrounding the tendering of such projects. Mint had earlier reported delays in evaluating 53 highway projects.
According to new rules, companies that had been either shortlisted for eight projects or won four projects in the two months preceding the bid due date are not eligible to bid.
— Staff Writer
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Forex remittances: RBI nod must for Lehman
Mumbai: The Reserve Bank of India (RBI) on Tuesday directed Lehman Brothers Capital Pvt. Ltd, a non banking finance company or NBFC, to seek approval of the central bank before entering into any transaction with any institution in India or outside for making any foreign currency remittance.
It also directed Lehman Brothers Fixed Income Securities Pvt. Ltd. a primary dealer that buys and sells government bonds, not to declare any interim dividend or remit any amount to its holding company or any other group company without prior approval of RBI. The primary dealer has also been restricted from undertaking any transactions in government securities in the primary market.
These steps, the banking regulator said, have been taken in the interest of public and financial system, a late evening RBI release said.
Meanwhile, the Bombay Stock Exchange and the National Stock Exchange said on Tuesday that the local arm of Lehman Brothers Holding Inc, shall continue to operate in the cash market and that it has no outstanding open positions or settlement obligations.
The exchanges said that Lehman Brothers Securities Pvt Ltd is one of the trading cum clearing members in the cash segment and "shall continue to operate in the cash market segment on pre-pay-in before their trades."
Lehman Brothers filed for bankruptcy protection in the US on Monday.
— Staff Writer
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Porsche raises stake in Volkswagen to 35.1%
Berlin: The maker of the 911 sports car, Porsche SE, said it acquired “de facto control" over Volkswagen AG after increasing its stake in Europe’s biggest automaker to 35.1%.
Porsche bought 14.4 million Volkswagen shares on Tuesday, a step on its way to obtaining more than 50% of the company’s stock, the Stuttgart, Germany-based car maker said an emailed statement.
— Bloomberg
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Aegis Media India launches Posterscope
Mumbai: Posterscope, the global Out of Home (OOH) company, was launched in India on 16 September. Aegis Media comprises Carat, the media buying and planning giant, Posterscope, Isobar, the global digital company and Vizeum.
Posterscope India will be headquartered in Mumbai but launched simultaneously in all the metros and mini-metros.
The team will be led by Haresh Nayak, an OOH veteran. Sushil Pandey has been selected to lead the West and South and Vinay Goel to lead the North zones.
Posterscope India will first introduce PRISM MAP, a mapping tool, to map out of home media options from hoarding to street furniture sites in the top 32 cities, including metros, mini-metros and tier I towns.
— Staff Writer
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Campaign to oppose domestic violence
New Delhi: Breakthrough, a non-profit organization that seeks to promote human rights, will launch a multi-media campaign against domestic violence in Mumbai on Wednesday.
The campaign, titled Bell Bajao (Ring the Bell), urges men to take a stand against domestic violence, a statement posted on the group’s website said. “One out of every three women faces violence behind closed doors, so whether it’s ringing a door bell to stop a crime, or speaking out, make sure you’re doing your part to ensure women and families in your communities are living free of violence," it added.
Popular Bollywood actor Boman Irani will launch the campaign at Mumbai’s K.C.College auditorium.
— Staff Writer
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