Companies & Sectors
SpiceJet sinks further into financial trouble

Can the DGCA and the government act in time to save the ailing carrier or will they let it fail?


Spicejet representatives met Aviation Minister Ashok Gajapthy Raju today to look for ways to keep the airline from going bust.


As reported by Moneylife earlier, ( “If the promoters don’t put in the capital, who will? SpiceJet seems certain to go the Kingfisher way, since the wealthy Marans seems to have thrown up their hands. In the process small investors and employees would suffer.”


Spicejet had been asked to clear its dues amounting to around Rs1,600 crore, which includes fuel costs, dues to the AAI and salaries to passengers, by today.


NDTV reported that an internal email said, “Meeting (between DGCA and SpiceJet) will effectively determine future of our company. If all goes well, we can expect to continue operations smoothly and as planned. If for any reason, all does not go well, then expect the following. You will get a call from a senior management pilot. He will brief you in detail as to the situation and necessary further action to be taken. Please do as briefed.”


In another manifestation of the soup SpiceJet finds itself in, it reportedly stopped serving meals on board its flights from Sunday onwards.


In a reply in Parliament today, minister of state for civil aviation Mahesh Sharma told the house that, “All private Indian airlines are suffering from financial stress as found in financial audits carried out this year by aviation regulator DGCA.”


Aadhaar not mandatory for availing LPG subsidy in bank account: Govt

The union government once again made it clear that Aadhaar number is not mandatory to avail LPG subsidy and the consumer can receive the subsidy in his bank account under MDBTL scheme


Contrary to the bombardment of advertisement from the Unique Identification Authority of India (UIDAI), the Aadhaar number is not mandatory to avail LPG subsidy. Dharmendra Pradhan, the minister of state for Petroleum and Natural Gas, informed the Lok Sabha that under the modified direct benefits transfer for LPG (MDBTL), consumers joining this scheme will get cylinders, subsidised as well as non- subsidised, at market price and subsidy amount as applicable for each domestic subsidised cylinder is transferred to their bank account. 
"If the LPG consumer does not have an Aadhaar number, he can directly receive subsidy in his bank account without the use of Aadhaar number. This option which has now been introduced in the modified scheme ensures that LPG subsidy is not denied to an LPG consumer on account of lack of Aadhaar number," he said. 
Last month, the Narendra Modi government re-launched its modified direct benefits transfer for LPG (MDBTL) scheme on pilot basis in 54 districts across the country. The main feature of this modified scheme is LPG consumers will be able to get subsidy directly in their bank accounts from 15th November even if they do not have Aadhaar numbers.
Pradhan said all LPG consumers have a grace period of three months from the date of launch of DBTL in the district, during which all those who have not yet joined the scheme would continue to get subsidised cylinders as per their entitlement. 
After the end of grace period, an additional parking period of three months is given to such consumers during which the subsidy entitlement will be parked and will be transferred to consumer's bank account on joining the scheme during this period.
The previous DBTL scheme launched by the Congress-led United Progressive Alliance (UPA) government failed due to its linkage with Aadhaar numbers with bank accounts. Most people did not have either Aadhaar number or a bank account. Now with a push for opening bank accounts, the MDBTL has been linked to both, Aadhaar numbers and bank accounts.




2 years ago

1 )The oil companies not trained the gas agency people in the forms

2 )They are completely ignoring the judgement and make a compulsion of adhaar card.

3 )If we view the website we can see the bank accounts without adhaar card
still under the verification even after three weeks. And at the sametime bank accounts with adhaar card are in green signal.

Drdhule Kailash

2 years ago

It is unfortunate that gas distributors and even banks like SBI doesn't know about it.even if they know there is no software downloaded for accepting consumer nu or LPG ID NU.Vice versa HP GAS Distributors are too batting the consumers by saying that first get update form nu 3/4 by bank first.then n only then they will accept form nu 3/ is controversial when the company itself send the messages on mobile either collect bank documents to LPG distributors or collect the LPG papers to bank.but both are denying. i am one of the sufferer.what the common man n illiterate people from village should do?


2 years ago

If we not get the amount in our bank than to whom I ask the money? As per my suggestion better Govt. should give the subsidy amount direct to LPG Dealers as per their records & dealer should take the acknowledgement from their customers.

Nifty, Sensex making an attempt to stabilise and rise – Monday closing report

Nifty has to close above 8270 for a short rally


Nifty opened shaprly lower today following a huge fall in the US markets on Friday, but managed to recover and end with a marginal loss. In Friday's closing report we mentioned that Nifty has to close above 8,280 for a short rally. S&P BSE Sensex opened at 27,136 and moved from the low of 27,105 to the high of 27,392 and closed at 27,320 (down 31 points or 0.11%). Nifty, which opened at 8,161, hit a low of 8,153 and moved up to hit a high of 8,242 and closed at 8,220 (down 5 points or 0.05%). NSE recorded a volume of 71.34 crore shares. India VIX rose 1.95% to close at 14.0200.

The government released the data on CPI inflation for November 2014 and industrial production data (IIP) for October 2014 after trading hours on Friday. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 4.4% in November 2014 from 5.5% in October 2014, driven by a sharp decline in inflation for food articles. The corresponding provisional inflation rates for rural areas were 4.1% and urban area also 4.7%, as against 5.5% and 5.6% for October 2014. IIP declined, at its sharpest pace in three-years, contracting 4.2% in October 2014 compared with 2.8% (revised) increase in September 2014.

Minister of State for Finance Jayant Sinha said in a written reply to a question in the Lok Sabha on Friday that as per the Action Plan of 2014-15 on disinvestment, the government intends to sell 5% stake in SAIL, 5% stake in ONGC, 10% stake in Coal India, 11.36% stake in NHPC, 5% stake in Power Finance Corporation, 5% stake in Rural Electrification Corporation, 5% stake in Container Corporation of India, 10% stake in SJVN, 10% stake in MOIL, 10% stake in Rashtriya Ispat Nigam and 10% stake in Hindustan Aeronautics Ltd during the current fiscal year. In addition, some loss-making central public sector enterprises may also be disinvested in 2014-15, Sinha said.


However, they have not yet been identified, he said.

WPI eased to 0.0% (provisionally) for the month of November, 2014, as compared to 1.77% (provisional) for the previous month and 7.52% during the corresponding month of the previous year.

Sebi might relook at the recently-introduced delisting regulations. A clause in the new delisting framework mandating participation from at least 25% of public shareholders for the success of the delisting bid has drawn criticism from the market.

MMTC (12.41%) was the top gainer in ‘A’ group on the BSE. PMC Fincorp (9.18%) was the top loser in ‘A’ group on the BSE. Jet Airways (7.19%) was among the top two losers in the group. The stock hit its 52-week high last Thursday.

HDFC (4.94%) was the top gainer in the Sensex 30 pack. HDFC Bank has said a merger with parent HDFC makes sense in the long term. There is no proposal on the table and regulatory clarity is required to make such a deal “more beneficial”.

TCS (3.78%) was the top loser among Sensex 30 stocks. In its business update for Q3 December 2014, issued after trading hours on Friday, TCS said that currency fluctuations will have a marginal positive impact on the company's earnings before interest and tax in Q3 December 2014. The target EBIT margin band for Q3 December 2014 remains unchanged. There will be adverse currency impact of 20 basis points (bps) on constant currency revenue in rupee terms in Q3 December 2014. There will be adverse currency impact of 220 bps on constant currency revenue in dollar terms in Q3 December 2014. TCS said that revenue in Q3 December 2014 is expected to be in-line with seasonal trends.

On Friday, US indices closed in the red. The US Senate on Saturday passed a $1.1 trillion spending bill that lifts the threat of a government shutdown as Congress attempts to wrap up a two-year legislative session marked by bitter partisanship and few major accomplishments. The Senate's 56-40 vote sends the measure to President Barack Obama, who is expected to sign it into law before federal spending authority expires at midnight.

A two-day meeting of Federal Open Market Committee (FOMC) to discuss monetary policy review starts tomorrow, 16 December 2014. Except for Shanghai Composite (0.52%) all the other Asian indices closed in the red. Thailand’s SET (2.41%) was the top loser.    

Confidence of Japan's large manufacturers declined in the fourth quarter as a recession offset a boost from a weaker yen, underlining the economic challenges facing Prime Minister Shinzo Abe after his election win. The Tankan's big manufacturer index slipped to 12 in December from 13 in September Bank of Japan today.

European indices were trading marginally higher. US Futures were trading in the green.


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