Need To Know | Dubai Aerospace leases 3 carriers to Kingfisher

Need To Know | Dubai Aerospace leases 3 carriers to Kingfisher

Dubai: Dubai Aerospace Enterprise, a state- owned aviation manufacturing and service company, said it has leased three A320-200s carriers to Kingfisher Airlines Ltd of India.

The planes, delivered in August, are powered by Pratt and Whitney, Dubai Aerospace said in an emailed statement on Monday.

— Bloomberg


GoAir goes for comfort, launches business class

New Delhi: The Wadia Group’s GoAirlines (India) Pvt. Ltd, which runs low-fare carrier GoAir, has named its business class ‘GoComfort’ for corporate travellers, according to its website.

The decision to include a new class of service was part of positioning itself as a value carrier, in between a full-service and no-frills carrier. The new seats, with an 85 cm pitch, will be in the first four rows without a middle seat.

A selection of complimentary drinks and snacks will be available for GoComfort passengers, who are also free to change their itinerary without extra charges. Full refund will be given in case of cancelling tickets 2 hours prior to departure.

According to information available on the website, a Mumbai-Delhi economy ticket on GoAir for November was priced at Rs750 (excluding taxes and surcharges) while GoComfort costs Rs2,800. Mint had reported this development in two articles dated 5 and 12 October.

— P.R. Sanjai


RBI extends liquidity support for MFs

Mumbai: The Reserve Bank of India (RBI) said on Monday that its liquidity support to the mutual fund (MF) industry will continue until further notice instead of the 15-day period stipulated earlier.

“On a review, it has been decided that the relaxations allowed vide our circular dated 14 October, 2008, would continue to be in force until further advice," the central bank said in a statement.

On 14 October, RBI had provided this special window under which banks could borrow up to Rs20,000 crore to lend to MFs to see them through a tight liquidity situation. So far, banks have borrowed only Rs8,550 crore under this window. The fixed repo rate lending by RBI is conducted everyday.

— Anup Roy


Derivatives: Rajshree Sugars obtains stay

Mumbai: Coimbatore-based Rajshree Sugars and Chemicals Ltd (RSCL) has obtained a status quo order from a division bench of the Madras high court against Axis Bank Ltd that was approaching the debt recovery tribunal to recover dues from the firm.

Rajshree Sugars has been fighting a legal battle with the private sector bank, alleging mis-selling of exotic forex derivatives to the company on account of which it had to incur huge losses. The court order will be applicable until 6 November, when the case comes up for hearing. Reading out the division bench order over telephone, B. Rajendran, advocate, RSCL, said, “As the issue involved is debatable, we are of the considered view that there should be an order of status quo as on today..."

A senior Axis Bank official said, “We have already filed a case with the debt recovery tribunal.’’

The Madras high court on 14 October had held that the derivatives contract is not a wagering contract, which means it is not illegal.

It had also held that the amount due to the bank (Rs46-50 crore) is a debt as defined under the Debt Recovery Tribunal Act and hence the bank can approach the tribunal.

— Anita Bhoir


Kulshreshta elected new PCI secretary general

New Delhi: A panel led by Pushpendra Kulshreshta emerged victorious in the elections of the Press Club of India held on Saturday.

While Kulshreshta was elected secretary general for a third consecutive term, his candidates grabbed all the executive positions, except that of the treasurer, and 11 seats in the 16-member managing committee.

Parvez Ahmed was elected president, while Jayanta Bhattacharya and Narendra Bhalla were elected vice presidents. Nadeem Ahmed Kazmi defeated Lucy Chattopadhyay for the treasurer’s post. Chattopadhyay and Kulshreshta were featured in a story on the press club that appeared in Mint on Monday. In all, 1,000 votes were cast.

— Staff Writer


Daiichi Sankyo gets control of Ranbaxy

New Delhi: Daiichi Sankyo Co. Ltd acquired 52.5% of Ranbaxy Laboratories Ltd, getting control of India’s biggest drug maker.

Ranbaxy’s board met on Monday to approve the sale of shares and warrants on a preferential basis to the Japanese company, Ranbaxy said in a statement to the Bombay Stock Exchange on Monday.

— Bloomberg


Parliament session may end on 24 October

New Delhi: The Parliament session that began on 17 October is likely to end on 24 October, according to a senior cabinet minister who didn’t want to be named.

He didn’t say whether the session will be adjourned or prorogued.

After passing the demand for supplementary grants, no other major Bills or legislations are likely to be passed in this session, he added. The next session of Parliament is likely to be convened on 8 December, though it is unclear whether it would be a new session or merely a continuation of the ongoing one.

The main opposition Bharatiya Janata Party, or BJP, on Monday suggested reconvening of the Parliament session on 8 December and claimed that all parties, except the Left parties, are in favour of it. The Left parties have demanded a full-fledged winter session from December, while the BJP has clarified that it is ready for either situation.

— Liz Mathew and PTI