“Government is not in a position and will not bail out any private airlines. Air India is a public sector unit, so government has an obligation. But Air India will have to become competitive and restructure their costs... as the government cannot keep on pouring money,” civil aviation minister Ajit Singh told reporters
New Delhi: Giving a clear message to ailing Indian carriers, the government Wednesday asked national carrier Air India to pull up its socks and become competitive as it “cannot keep on pouring money” and told private carriers that there would be no bailout for them, reports PTI.
“Government is not in a position and will not bail out any private airlines. Air India is a public sector unit, so government has an obligation. But Air India will have to become competitive and restructure their costs... as the government cannot keep on pouring money,” civil aviation minister Ajit Singh told reporters here.
The minister said Tuesday that there was “some hitch” in Air India’s restructuring plan by SBI Caps, raised by the banks. This would be resolved jointly by civil aviation secretary and finance secretary, he said.
After laying the foundation stone for a new ATC tower at the Indira Gandhi International Airport here, Mr Singh said a Group of Ministers (GoM) will soon meet to decide on allowing foreign airlines pick up stakes in the Indian carriers.
“Finally, the Cabinet will take the decision. The Committee of Secretaries has already recommended raising the FDI limits in the sector,” he said.
His comments came in the wake of reports that government was exploring options to allow foreign airlines pick up equity in Indian carriers.
Asked about demands by private airlines for a bailout package, he said they will have to come up with a viable business plan.
“If the banks are satisfied with their plans and think they can recover their money then they will lend money,” he said, adding that the banks would have to go by the Reserve Bank of India (RBI) norms.
On reports of safety being compromised by airlines due to their poor financial conditions, the minister said, “There are problems. Industry has grown so fast in past few years. There is shortage of trainee pilots, stewardess... there are financial implications...
“But as far as question of jeopardising the safety of passengers is concerned, there is no such fear. There is no compromise, DGCA will not compromise and the ministry will not compromise,” Mr Singh said.
RTI petitions yield confusing information on receiving complaints about judges of superior courts
It looks like confusion exists within the judiciary itself about ways of dealing with errant judges. Two different RTI queries have yielded contradictory answers from former Chief Justice of India YK Sabharwal and the Department of Justice on the procedure to deal with complaints received by Chief Justices of the Supreme Court and high courts against judges of higher courts.
In October 2011, RTI activist Subhas Chandra Agrawal filed a query with the Department of Justice, seeking information on commissions constituted to probe tainted judges PD Dinakaran and Soumitra Sen. He also asked about the benefits allowed to judges who resign before enquiry or impeachment proceedings start; and powers of the chief justice of a high court and the Chief Justice of India to receive complaints against judges of superior courts and taking action against them.
In reply, the CPIO (chief public information officer) on 12th November provided a detailed response to his queries. He clearly mentioned the duties of the Chief Justice of India and that of a high court on receipt of a complaint against a judge belonging to a high court or Supreme Court—elaborately describing the procedure of filing complaints, setting up of probe committees and initiating action of removal of the said judge(s).
However, the information clearly contradicts a statement made by former Chief Justice YK Sabharwal, which was quoted in an RTI response from Supreme Court Registry dated 21st April 2006. Mr Agarwal had asked the same question, the reply to which quoted an order by the then chief justice that said, “Neither Supreme Court or Chief Justice of India is the appointing or disciplinary authority with respect to judges of superior courts, including judges of high courts.”
While the process of removal of judges of the Supreme Court and high court can be done only by the order of the president, complaints can be received by the chief justice of a high court and the Chief Justice of India regarding errant judges, and if the complaint is against the chief justice of a high court, it can be received by the president or the Chief Justice of Supreme Court, who may initiate probe and set up enquiry commissions against the judge.
However, the removal procedure is very complex, and till date only two judges—Soumitra Sen of the Calcutta High Court and V Ramaswamy of the Madras High Court has faced impeachment proceedings in Parliament. Only the former was removed successfully.
According to our Constitution, the Chief Justice of India is consulted by the president regarding appointment of judges of high courts, and the chief justice of a high court is also consulted for appointment of other judges of a high court. The Chief Justice of the Supreme Court is also consulted regarding transfer of judges of a high court.
YK Sabharwal has been a controversial figure, and there are many allegations against him about misusing his authority in order to favour his sons who are in real estate business. Referring to his statement, Mr Agrawal said, “Since two responses from Department of Justice and Supreme Court seem to contradict each other, I appeal that CPIO at Department of Justice may kindly be directed to reveal an exact position about competence of Chief Justices of Supreme Court and high courts in regard of handling complaints against judges of superior courts.”
Nifty may give back some of the gains tomorrow
The market was range-bound for the entire trading session as nervousness ahead of the earnings season made investors jittery. We may see the Nifty making a struggled upmove to the level of 4,910 after which it may reach the level of 4,950. However, the benchmark should maintain itself above 4,842, today’s low to sustain the gains. Today’s marginal gain was on a large volume of 79.60 crore shares on the National Stock Exchange (NSE). Huge volume without advance is a sign of tiredness, even if temporary.
The market opened higher on continuing optimism on the domestic front. Global ratings agency Moody’s yesterday upgraded its rating of the country's short-term foreign currency bank deposits to investment grade and the government notified 100% foreign direct investment (FDI) in single-brand retail. The uptick in the Asian bourses in morning trade also supported gains in the domestic market. The Nifty opened at 4,863, up 13 points over its previous close and the Sensex added 57 points to resume trade at 16,222. Consumer durables, banking, auto and metals sectors supported initial gains.
Profit-booking in realty, metal, IT and capital goods stocks, ahead of the quarterly earnings season, which officially kicks off on Thursday with IT bellwether Infosys announcing its numbers in the morning led the market lower. The benchmarks were range-bound in subsequent trade.
Lacklustre opening of the European markets added to the sluggishness in the indices in the second half of trade. However, the broader indices outperformed the benchmarks as the FDI notification in singe-brand retail was welcomed by retail stocks.
The Nifty traded in the range of 35 points (4,842-4,877) and the Sensex swung between 16,128 and 16,245 (117 points) during trade today. At the close, the Nifty and the Sensex rose 11 points each to settle at 4,861 and 16,176, respectively.
The advance-decline ratio on the NSE was 1266:576.
The broader indices outperformed the Sensex today, as the BSE Mid-cap index climbed 1% and the BSE Small-cap index surged 1.32%.
BSE Realty (up 4.64%); BSE Metal (up 2.26%); BSE Bankex (up 1.12%); BSE Oil & gas (up 1.02%) and Capital Goods (up 0.74%) were the top gainers in the sectoral space. The laggards were BSE IT (down 1.42%); BSE TECk (down 1.21%) and BSE Fast Moving Consumer Goods (down 0.68%).
The top Sensex gainers were Hindalco Industries (up 5.69%); Sterlite Industries (up 4.85%); DLF (up 3.41%); Tata Steel (up 2.88%) and Hero MotoCorp (up 1.97%). The losers were led by TCS (down 2.54%); Jindal Steel (down 2.16%); Mahindra & Mahindra (down 1.60%); Bharti Airtel (down 1.54%) and Cipla (down 1.53%).
The key advancing stocks on the Nifty were Hindalco Ind (up 5.85%); Sesa Goa (up 5.64%); Axis Bank (up 5.45%); BPCL (up 5.24%) and Sterlite Ind (up 4.90%). Grasim (down 2.63%); TCS (down 2.56%); Jindal Steel (down 2.49%); Power Grid Corporation (up 2.39%) and M&M (down 1.72%) settled at the bottom of the index.
Markets in Asia closed mostly in the green on positive economic news from the US. However, European concerns ahead of Spanish and Italian bond auctions later this week capped the gains. Stocks in China fell a day ahead of the release of inflation data for December.
The Hang Seng gained 0.78%; the KLSE Composite added 0.02%; the Nikkei 225 rose 0.26%; the Straits Times climbed 1%; and the Taiwan Weighted closed 0.13% higher. Among the losers, the Shanghai Composite fell 0.42%; the Jakarta Composite declined 0.74% and the Seoul Composite dropped 0.41%. At the time of writing, the main European markets were mixed and the US stocks futures were trading in the positive.
Back home, foreign institutional investors were net buyers of stocks totalling Rs324.32 crore on Tuesday while domestic institutional investors were net sellers of equities amounting to Rs115.11 crore.
Escorts, a maker of critical railway components, has inked a licencing and technology pact with a US-based Honeywell for technical assistance on railway brake systems. The technical tie-up will help the Indian major offer brake blocks and disc brake pads suited for high-speed trains in India as well as select export markets. The stock jumped 4.04% to close at Rs73.40 on the NSE.
Sasken Communication Technologies, a leading embedded communications solutions company is working towards expanding its scope of work into newer industries such as automotive, retail, security and healthcare. The stock rose 1.95% to close at Rs107 on the NSE.
In a fresh trouble for Lavasa Corporation, part of Hindustan Construction Company (HCC), two members of tribal community from Mulshi tehsil of Pune have approached the Bombay High Court, challenging the notification which empowered the Corporation to acquire land and act as a Special Planning Authority. Despite the setback, HCC jumped 5.05% to close at Rs19.75 on NSE.
RPG Life Sciences informed the BSE that the ministry of social and family affairs, health and consumer protection, Hamburg, Germany did not grant EU GMP for the company’s API facility at Navi Mumbai, Maharashtra, post their inspection citing certain deficiencies. The company said that this move will have adverse impact on its export business. The stock fell 0.44% to close at Rs68.60 on the NSE.