Indian Economy News & Discussion - Aug 26 2015

Suraj · Post by **Suraj** » 28 Feb 2016 22:18

Supratik wrote:I haven't seen news of any progress on that by the states. Not sure what is happening on that front.

There's been plenty happening on this front in recent months:
Dec 2015: Centre’s bill on hold, states move on land acquisition

With the Centre putting its land acquisition Bill in cold storage, states are now taking the lead to seek an exemption from the 2013 Act passed by the previous UPA government to get around provisions such as land owners’ consent and social impact assessment.

While Tamil Nadu has moved ahead by amending a related Act, a senior official said other states keen to move in this direction include Rajasthan, Maharashtra, Assam and Karnataka. Assam and Karnataka are ruled by the Congress, which spearheaded the opposition to the BJP-led NDA government’s move to amend the 2013 Act.

Tamil Nadu amended the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 by inserting a new section — Section 105 — that exempts land acquisition for industrial purposes and highways from the provisions of the Centre’s land Act.

“Tamil Nadu has taken the lead. Other states such as Rajasthan had initiated changes, but put them on hold after the Centre itself moved an Ordinance,” said Arvind Panagariya, vice-chairman, NITI Aayog.

Panagariya has been a vocal proponent of the idea of states moving on their own to undertake necessary legal changes for easier land acquisition.

Sources in the government said at least a couple of other states have also proposed changes to the 2013 Act. “Maharashtra, Assam and Karnataka too are keen to push through changes in the 2013 Act of the Central government or bring new legislation specifically for infrastructure to get around the difficult provisions of consent and social impact assessment,” said the senior official, who did not wish to be named.

Andhra Pradesh too framed rules last October that allowed it to acquire land easily. For its new capital Amaravati, Chief Minister N Chandrababu Naidu adopted a land-pooling mechanism to acquire some 32,000 acres from about 18,000 farmers.

“Andhra decided to return 25 per cent of the acquired land post development of the capital city to farmers besides providing for annuity payments for 10 years. This was a win-win deal for both the state and the farmers,” said a state government official.

The Rajasthan government had started work on its own land law last year as a way around the Centre’s land Act, but the Central government advised the state to put the process on hold since it was promulgating an Ordinance last December. “But now, the state will once again consider amendments after the Resurgent Rajasthan event scheduled in November,” said a source privy to the state’s economic agenda.

The move by states assumes significance as the NDA government’s efforts to amend the Land Acquisition Act had faced stiff opposition. With the Centre deciding not to repromulgate the ordinance to amend the land legislation, both Panagariya and Finance Minister Arun Jaitley had advised states to frame their own Act with the Centre’s approval.

The view of having separate land laws across different states was reinforced after a meeting of the governing council of the NITI Aayog with chief ministers this July.

Under the 2013 Land Acquisition Act, except when the appropriate government acquires land for its own use, hold and control, acquisition is estimated to take at least four to five years and uncertainty with respect to eventual successful completion of acquisition remains.

The NDA government had repromulgated ordinances thrice in order to amend the Act, citing the need for a less time-consuming alternative for private or PPP projects in areas such as rural roads, affordable housing, infrastructure and building cities.

Under the Constitution, land acquisition is mentioned on the Concurrent List, although Article 254 (2) allows a state to amend a Central government act on the list provided the President approves it.

The government is simply following the "if you won't let us amend the law federally, we'll let any state gut the law in the manner they desire" approach. No central buffet permitted by parliament means states are now allowed to order changes a la carte.

Kakkaji · Post by **Kakkaji** » 29 Feb 2016 06:03

For vinaji and others who are hoping for 'Big Bang Reforms' in the budget tomorrow, I think you will be disappointed.

Modi follows the economic philosophy of Deen Dyal Updhyaya, not that of Milton Fredman. If you want to understand Modinomics, read Deen Dayal Upadhyaya.

And no, Deen Dayal Upadhyaya's economics is not 'Cow + Marx'.

Yagnasri · Post by **Yagnasri** » 29 Feb 2016 09:11

Milton Freedman may be possible to some extent as far as the industry is concerned. But not the entire national economy unless we want to have a china type one party rule.

Hari Seldon · Post by **Hari Seldon** » 01 Mar 2016 05:31

I'd give 6/10 to the budget. Nothing for the middle class, as usual. Nice to see arbitrary exemptions and cesses go, however. Push on farm sector and infra is laudable. No action it seems on the retro-taxation controversies (wonder why such delay?).

Should give a longer window for black money to come into productive uses before shutting them off for good.

Singha · Post by **Singha** » 01 Mar 2016 06:51

taxing PF withdrawals from this years contrib onward, even the employer part is a cruel blow to middle class one has to say.

Hari Seldon · Post by **Hari Seldon** » 01 Mar 2016 12:28

Hallelujah, biraders. Storm raised on social media has forced clarifications from sarkar.

Only EPF interest to attract tax, withdrawals will be exempted (HT)

Only interest accrued on 60% of the contributions to the Employee Provident Fund after April 1, 2016 will be taxed while the principal amount will remain tax exempt, revenue Secretary Hasmukh Adhia clarified on Tuesday after uproar over the government’s proposal to tax withdrawals from the Employee Provident Fund (EPF).

Adhia said the Budget proposal to tax 60% of employee provident fund (EPF) withdrawal will affect less than one-fifth of employees with high salaries. The proposal, he said, is to tax the interest accrued on PF contributions made after April 1, 2016

Small salaried employees with up to Rs 15,000/month income will be kept out of purview of proposed taxation of EPF, Adhia further said.

This 60 per cent will also be tax exempt if it is invested in a pension annuity schemes, he said. “This is not a revenue mobilisation exercise,” he added.

Adhia said that no part of PPF will be taxed and the present scheme of investment up to Rs 1.5 lakh in a year will continue to be tax exempt. PPF on withdrawal will continue to be out of the tax ambit.

member_29350 · Post by **member_29350** » 01 Mar 2016 14:03

Hari Seldon wrote:Hallelujah, biraders. Storm raised on social media has forced clarifications from sarkar.

Only EPF interest to attract tax, withdrawals will be exempted (HT)

Nope, it's no consolation. EPF is still taxed so there's no win for anyone, just a lower level economic harassment

Aditya_V · Post by **Aditya_V** » 01 Mar 2016 14:36

sivaramn wrote:
Hari Seldon wrote:Hallelujah, biraders. Storm raised on social media has forced clarifications from sarkar.

Only EPF interest to attract tax, withdrawals will be exempted (HT)
Nope, it's no consolation. EPF is still taxed so there's no win for anyone, just a lower level economic harassment

Employer Contribution to EPF not taxed and Employee contribution upto 1.5 lac eligible for 80C benefit. It is a huge rollback of a bad decision, IN all this still bad decision regarding no Employer contribution withdrawal till 58 years.

member_29350 · Post by **member_29350** » 01 Mar 2016 15:08

Aditya_V wrote: Employer Contribution to EPF not taxed and Employee contribution upto 1.5 lac eligible for 80C benefit. It is a huge rollback of a bad decision, IN all this still bad decision regarding no Employer contribution withdrawal till 58 years.

I see you've fallen for a variation of the 'decoy pricing' marketing strategy

1. Announce a really bad idea
2. after the known outcry, announce that you've taken 'feedback'
3. Implement the actual feature of the bad idea you wanted
4. janta mollified a bit
5. objective achieved

In this case, the lockin and 60% tax part? WhoTF wanted these features?

Are we seriously saying, someone who can manage to save money can't be responsible and hte GOI has to be a nanny state in economic affairs of individuals?

NRao · Post by **NRao** » 01 Mar 2016 17:01

Defence allocation down to about 1.65 % of GDP, lowest since the 1962 China war

Singha · Post by **Singha** » 01 Mar 2016 21:54

the BJP is well on its way to 50 seats in 2019

Picklu · Post by **Picklu** » 01 Mar 2016 22:44

^^ That may be the political part of it but I have a completely contrarian idea about the enforced annuity scheme. Posted in details in the budget dhaga.

I think it is a one two blow that is being in the work just like JAM. None of the JAM schemes are earth shattering individually but taken together can revolutionize the social welfare scene of India.

Similarly, the enforced annuity from pf will be a tremendous boost to the social security net of India if it comes with a reform on the annuity offerings available in India right now. And it is entirely possible for the fin min to nudge them that way via PSBs and LICs using gilt and debt funds with very low equity mix.

Suraj · Post by **Suraj** » 01 Mar 2016 23:02

Mod Note

Since there's both a budget and economy thread, as well as a separate political news thread, please exercise good judgement to decide which thread to post in depending on what you're posting. They're not all suited to the same purpose.

Austin · Post by **Austin** » 02 Mar 2016 13:59

India-China trade deficit at $44.7 billion in April-January

http://economictimes.indiatimes.com/art ... aign=cppst

India's exports to China stood at USD 7.56 billion during the period whereas the imports has jumped to USD 52.26 billion in April-January.

In 2014-15, the deficit was aggregated at USD 48.48 billion.

subhamoy.das · Post by **subhamoy.das** » 04 Mar 2016 20:24

http://economictimes.indiatimes.com/new ... 258162.cms

Supratik · Post by **Supratik** » 04 Mar 2016 20:37

The INC is going to disrupt the RS as long as Hamid Ansari is in the chair. A more optimistic date is perhaps 2017 when he retires.

Austin · Post by **Austin** » 06 Mar 2016 07:18

Modi’s mega “Make in India” will bring in lots of money but not enough jobs

Vikram Mansharamani

Narendra Modi is spending this week promoting his “Make in India” campaign—an ambitious programme designed to turn the subcontinent into a “global manufacturing hub.” The Indian prime minister’s vision is grand: he hopes to create 100 million manufacturing jobs in the next six years, and spur the development of a middle class that will power the Indian economy for years to come.

Many are bullish on this vision. I’m not. I worry that productivity gains arising from automation have made manufacturing-driven development an antiquated approach. Although it worked for China, India is too late to reap the benefits of this strategy. Simply put, technology has progressed so rapidly over the past few decades that only very cheap wages can compete with capital equipment. And to be competitive with the rise of robotics, those wages must stay low—exactly the opposite of what India’s economy needs.

At first glance, you might not notice the problems with the Make in India strategy. Modi’s plan has, after all, attracted significant foreign investment. Last summer, electronics manufacturer Foxconn announced plans to invest $5 billion in a factory in western India, while GM unveiled $1 billion in planned investments on the subcontinent. Other companies, including Airbus and Hyundai, also announced major investments in India to expand their global manufacturing footprint. Overall, foreign direct investment increased 39% over the last 18 months, making India the number 1 destination in the world for foreign investment.

This is all great news for India. But it may not create the jobs Modi needs to achieve his goal. Bluntly put, the outlook for the Make in India campaign is not as rosy as recent investments suggest. The country only created four million manufacturing jobs between 2010 and 2014. At that rate of growth, the sector would only produce eight million more jobs by 2022, far below Modi’s target.

A likely culprit for this probable shortfall was embodied by one of Modi’s distinguished guests at this week’s promotional events. It was not the CEO of a powerful multinational, the prime minister of a major European country, or even an accomplished development economist. It was a robot.

On Saturday (Feb. 13), Modi met YuMi, “a collaborative, dual arm, small parts assembly robot solution that includes flexible hands, parts feeding systems, camera-based part location and state-of-the-art robot control.” Robots like YuMi are the future of manufacturing.

Thanks to rapid technological progress and the consistently falling prices of robots, production processes are becoming increasingly automated. As the Boston Consulting Group put it, “Many industries are reaching an inflection point at which, for the first time, an attractive return on investment is possible for replacing manual labour with machines on a wide scale.”

Even Foxconn, a company that uses more than one million employees to assemble Apple products such as the iPhone and iPad, plans to automate 70% of its assembly line work over the next three years. The future of global manufacturing is clear: more robots, fewer workers. And this means a huge pool of low-cost labour is no longer a competitive advantage in development. Manufacturing may never again be the job-creation engine it once was.

If manufacturing cannot create the much-needed jobs, it’s hard to imagine how the Make In India campaign will generate the broad-based, sustainable growth the country seeks. Even if India becomes a global production hub, the declining labour-intensity of manufacturing suggests the rewards from this accomplishment will be highly concentrated among very few. The economic tide may rise, but everyone won’t have a boat.

The dilemma reminds me of the story about Henry Ford, who on a factory tour with United Auto Workers (UAW) chief Walter Reuther smugly asked “How are you going to get these robots to pay your dues?” Without missing a beat, the story goes, the UAW boss responded, “How are you going to get them to buy your cars?”

The extreme automation represented by YuMi may seem new, but the dynamic of diminishing returns to industrialisation has been in place for decades. Researchers have noted the share of manufacturing jobs in industrialising economies has been consistently peaking at lower income levels. In the US, manufacturing employment peaked when per capita income was at $17,700; decades later, South Korean peaked around $12,700; and in Brazil, the level was $8,700. More recently, some African countries have seen manufacturing employment peak with income levels around $2,000 per capita. As the Economist bluntly concluded, “The technological transformation now under way appears to be permanently changing the economics of development… China may be among the last economies to be able to ride industrialisation to middle-income status.”

Further, remember that per capita calculations are affected by demographics. Given that India is slated to become the world’s most populous country by 2022, the pressures to create jobs and incomes are rising. An additional 150 million Indians will enter the workforce over the next 15 years—roughly the population of Russia, the world’s ninth largest country. Will these new workers find jobs? And how much will these jobs pay? The reality is that productivity-enhancing technologies allow economies to produce more with less. India needs to produce more with more.

Highly productive robots address worker scarcity. But India has plenty of potential workers. What India needs is jobs, and lots of them. The country’s labor pool is currently growing by more than 1 million workers each month. The problem with productivity is that it exacerbates issues arising from abundance. Automated manufacturing is very similar to adding workers to an already large pool of available workers. It’s the opposite of what India needs. It’s hard to imagine that anyone—in India or elsewhere—will succeed at putting the productivity genie back in the bottle. But focusing on what worked in China is a recipe for disappointment. It’s time to rethink the Make In India campaign, and it’s best to do so soon. Without a new strategy, Modi’s manufacturing mantra may mean malaise for millions. And worse, it may mean India never emerges into a developed nation.

This post first appeared on LinkedIn. We welcome your comments at ideas.india@qz.com.

hanumadu · Post by **hanumadu** » 06 Mar 2016 13:13

In the US, manufacturing employment peaked when per capita income was at $17,700; decades later, South Korean peaked around $12,700;

But South Korea's percapita continues to rise and it's now US$ 27,500. If manufacturing can get us to $6000 per capita, we should take it and see what we can do from there.

Rahul M · Post by **Rahul M** » 06 Mar 2016 14:14

qz.com is owned by atalantic right ?

hanumadu · Post by **hanumadu** » 06 Mar 2016 15:37

This is the YuMi Robot.

It is called a collaborative robot, meaning it will work with humans, it has to work with humans. It seems to be able to handle some simple assembly tasks but it is slow. Looking at the videos, I can see it works at 1/3 and 1/4 of human speed. All of the videos show that it is only able to slot one piece into another. It cannot do more intricate tasks which require the dexterity of the human fingers. The more intricate the task is, the slower it will be. So while it may take some human jobs, I think it is not ready to replace all or even a major portion of humans.

Suresh S · Post by **Suresh S** » 07 Mar 2016 07:23

Vikram Mansharamani

Austin this is another professor in a suit who looks smooth but is dead wrong. Robots have been around since I was a kid and these scare stories also have been around for decades.Major industries like motor vehicles, aerospace, electronics and others, all of these use robots to different degrees. But if you look around this has not impacted hiring of workers to a massive degree. Jobs have moved out of industrialised countries due to lower costs in other countries and that situation has not changed.Robots may have small impact overall and major impact in some specific industries . Modi is on the right track and this professor is dead wrong.Construction both residential and industrial can potentially create millions of jobs in india and robots are going to have almost no impact on that.

kmkraoind · Post by **kmkraoind** » 07 Mar 2016 08:19

Government may merge 27 public sector banks into just six

An expert committee, which will be soon set up to look into the issue, will closely work with the Banks Board Bureau (BBB) to identify the right matches for consolidation. The BBB, which will independently oversee consolidation and chalk out business plans for public sector banks, is set to be put in place by April 1, 2016.

Former CAG Vinod Rai is BBB's head.

csaurabh · Post by **csaurabh** » 07 Mar 2016 09:12

snahata, Yumi is a toy robot or gimmick. The previous article was not talking about that. There are large scale special purpose robots that can be programmed to do assembly of electronic components part by part. Today there are entire factories with vast production which employ only a handful of people. Why? Because robots.

This is a very deep topic that I shall post more about later. Suffice to say that AI and advanced robotics are going to cause huge technological unemployment. Read this book thoroughly http://robotswillstealyourjob.com/read

kmkraoind · Post by **kmkraoind** » 07 Mar 2016 09:50

Before you make it, you gotta shake it

In that little, short-lived face-off between Indian MSMEs and the babudom was the big story of the challenges that await Make In India in the business of defence. And what the government has to fix if it has any hope of defence delivering an economic spillover that would energize the economy in a manner similar to the way the automobile and telecom industry once did.

If Make In India simply means involvement of the Indian private sector, it isn’t really a new concept. Over the years, this has been effected through a measure of indigenization or import substitution. There are plenty of vendors in the defence sector living a very stifled life and dependent on the whims, fancies and extortion of not only DPSUs but also often inspectors from the user.

Babudom will bomb "Make in India" if they do not reform themselves. Time has come for NaMo to compulsory retire a big chunk of babus (dead wood), and bring new talent.

nawabs · Post by **nawabs** » 07 Mar 2016 10:12

^^ There was news on AIR that around 70 officers have been compulsorily retired since the beginning of last year.

Suraj · Post by **Suraj** » 07 Mar 2016 11:52

How the govt plans to meet the fiscal deficit target

There is going to be some upside to government finances quite early in 2016-17, making the financial year's challenging fiscal deficit target a tad easier to meet. The finance ministry plans to retire about Rs 30,000 crore of government debt ahead of schedule to take advantage of the current market conditions.

This is in addition to Rs 31,000 crore of sovereign debt that the government has planned to raise through public sector organisations, but kept them out of its books, for now.

According to Budget 2016-17, a fat amount of government debt papers - Rs 50,463 crore - will come up for redemption in April. However, instead of waiting till then, the government will redeem two-thirds of that before maturity date.

Taking advantage of the government's strong cash balance position this year, unlike last year, the finance ministry has already done some prepayment in February before the Budget. This pace will now accelerate.

Earlier redemptions free the government from its obligation to pay interest on those papers. Even when reissued with papers of longer duration, the combined effect will lower the total interest bill of the government for 2016-17 from the Budget Estimate of Rs 4,92,670 crore.

The government could get an upside of close to Rs 7,000 crore from the prepayments, says an investment analyst.

Govt working on creation of financing agency for higher education

The HRD ministry is actively working on the contours of a Higher Education Financing Agency (HEFA), which has been proposed with the aim of funding infrastructure creation at top educational institutions like the IITs and IIMs.

Senior officials said deliberations are on and HEFA is likely to be formed as a company under Section 8 of the Companies Act. It will be chaired by the higher education secretary.

Since it is going to be a non-banking financial company, the HEFA CEO would have to be a professional, most likely from the banking sector, while the Board would be a mix of donors and institutions chosen on a rotation basis, said an official.

In his budget speech last month, Finance Minister Arun Jaitley had said the government would set up HEFA with an initial base of Rs 1,000 crore and the organisation will leverage funds from the market and supplement that with donations from corporate social responsibility (CSR) funds to meet infrastructure requirements of the country's top educational institutions.

Sources said it is aimed that from an initial corpus of Rs 1,000 crore, the fund, over the next five years, would grow to over Rs 20,000 crore through leveraging of the markets and CSR contributions.

It will provide interest-free loans to higher educational institutions for constructing new campuses, expanding or renovating existing infrastructure and creating state-of-the-art laboratories.

It is proposed that all central and state higher educational institutions be made eligible for joining as members of HEFA, subject to certain conditions, an official said.

hanumadu · Post by **hanumadu** » 07 Mar 2016 19:11

I struck me suddenly how the government is skirting around the Land Acquisition Bill, by design or by chance. The govt builds the roads with its own funds, making it a public undertaking thereby avoid the SIA and 80% consent. Private companies are only involved in EPC mode. And then the govt plans to sell these roads for others to operate and thereby recuperating the money spent on it so it could invest elsewhere. Essentially it is a BOOT with a small twist. Ingenious I say!

Supratik · Post by **Supratik** » 07 Mar 2016 19:55

Excellent idea with HEFA.

SaraLax · Post by **SaraLax** » 08 Mar 2016 14:49

hanumadu wrote:This is the YuMi Robot.

It is called a collaborative robot, meaning it will work with humans, it has to work with humans. It seems to be able to handle some simple assembly tasks but it is slow. Looking at the videos, I can see it works at 1/3 and 1/4 of human speed. All of the videos show that it is only able to slot one piece into another. It cannot do more intricate tasks which require the dexterity of the human fingers. The more intricate the task is, the slower it will be. So while it may take some human jobs, I think it is not ready to replace all or even a major portion of humans.

Systemantics is a BLR based small company that already produced a robot to cater to assembly type job profiles many years before (with GoI's funding, IIRC). Those robots were meant for Indian companies but not sure if they were adopted by any small or medium industry concern. Recently Nandan Nilekani invested in this company.

If we are worried that robots are going to replace employees on factory floor - then you have missed out on automated & programmable machines that have already replaced numerous workers on the factory floor. There are many highly precise, multi-functional machining centres produced by Siemens, Fanuc & etc and they cost more than 100 crore INR in some cases. One can see many of them in our govt establishments too. I remember seeing one of these Siemens based machining behemoth at HVF more than a decade before. Completely automated, had many different tools running around its high structure in belts and could do various types of vertical as well as horizontal machining operations (drilling, milling, turning and etc jobs). It had some redundancy in certain aspects of its functioning too - unable to re-collect currently. Just one guy was manning this machine and he was supposedly sent to Germany to get trained on the ways of operating this machine. But some of the steel used for machining the turrets (of tanks) and others were very very hard to machine and took many hours to just drill through their cross-section.

We are supposed to soon have driverless cars ..now that many metro trains are already running in autonomous manner ! - So then what would happen to the many people whose primary work profession is driving (which is the case for many of the rural Indians working as taxi drivers in our cities) ?.

On the whole - automated machines of various degrees/capabilities, assembling robots and other robots - are all a part of the evolution of human thinking & development. We really cannot prevent them from manifesting among us and in our societies.

We should rather keep bringing up our newer generations at the home/school/colleges with impactful lessons on adages like 'be healthy and have healthy habits', 'never take anything for granted', 'do save a bit of your earnings', 'no job is permanent and never ever stop learning new things', 'don't be afraid of change, change is permanent and be ready to embrace it', 'don't freeze under pressure - keep thinking of new ways to move ahead'. The people who are skilled, who are able to use their thought faculties effectively and who are not fazed by sudden adverse work or economic scenarios - can handle life's twists & turns & earn enough for their well-being, for their family's well-being and for others surrounding them too. So we need to have a system at home & outside the home too - that can create people with these mindsets & enable them to survive in harsh & volatile economic conditions too and help others who are around them. We want Indians to stop thinking of rushing to the safety of a government job. We don't want to have meek, fearful, inactive farmers, mechanics, customer service personnel who are all clinging to their old professions or old ways of doing their job even after those concepts have been overridden by the advancements in technology. We need to provide such people with information on latest technologies, available financing schemes, confidence to take known risks at times & move to usage of newer technologies and basically have a forum that enables the running of these types of knowledge sharing & activities. Something akin to what Nasscom is doing in field of IT ?.

chandrasekaran · Post by **chandrasekaran** » 09 Mar 2016 15:58

Mallaya left India - for good ? Or is that a visiting trip ?

http://timesofindia.indiatimes.com/busi ... 327881.cms

RoyG · Post by **RoyG** » 09 Mar 2016 23:51

Gone. Big fish will always get away.

JTull · Post by **JTull** » 10 Mar 2016 13:17

RoyG wrote:Gone. Big fish will always get away.

Not in election year, as Sahara Group's Roy has found out.

Supratik · Post by **Supratik** » 10 Mar 2016 20:29

He is technically bankrupt. Just confiscate all his assets in lieu of dues. Sahara was different - didn't return investors (chit fund) money.

Gyan · Post by **Gyan** » 10 Mar 2016 20:37

I wonder whether BJP will investigate JET? Meltdown of Mallaya will lead to handover of Indian aviation and IMFL industries to foreigners.

Supratik · Post by **Supratik** » 10 Mar 2016 20:46

It has already happened. KF is dead and UB is now owned by Diageo. Usually govts protect big businesses. If the UPA had brought the notifications 6 months earlier KF may have been saved.

Suraj · Post by **Suraj** » 10 Mar 2016 22:13

The Mallya issue has the potential to help ease the passage of the bankruptcy bill through parliament, which would be a very good win for GoI.

Prasad · Post by **Prasad** » 11 Mar 2016 12:41

Gyan wrote:I wonder whether BJP will investigate JET? Meltdown of Mallaya will lead to handover of Indian aviation and IMFL industries to foreigners.

Su Swamy is behind Jet(&Etihaad). Hes been on (yet another) mission to figure out how foreign carriers have become de facto carriers for indian passengers to europe and us and indian airliners aren't anywhere close.

Yagnasri · Post by **Yagnasri** » 11 Mar 2016 13:16

KFA was targetted for liquidation by 10 years rule of mafia gang. Mallya is an idiot and cheated even his employees and tax amounts. He has not learned this exact position till date and being casual even now. 6900 Cr with interest for two years is a big amount and unless he settles with banks there is no way he can escape easily from the mess.

gashish · Post by **gashish** » 12 Mar 2016 04:54

Prasad wrote:
Gyan wrote:I wonder whether BJP will investigate JET? Meltdown of Mallaya will lead to handover of Indian aviation and IMFL industries to foreigners.
Su Swamy is behind Jet(&Etihaad). Hes been on (yet another) mission to figure out how foreign carriers have become de facto carriers for indian passengers to europe and us and indian airliners aren't anywhere close.

I thought though this was straightforward; it is cheaper to fly Gelf carriers with better service to boot, as they are heavily subsidized by their respective governments (interest-free capital, subsidized landing fees, assumptions of fuel-hedging losses).
Besides, if the chairman of Emirates airline is also the chairman of UAE civil aviation authority and also of Dubai airport, its money from one pocket to another..

By some estimates, 40% of US-India traffic is now carried by 3 gulf carriers, thats is tripling of their share in mere 5-6 years, and that has come at the cost of TFTA US/EU carriers, rankling them to no end. Given that, I see no way how Indian carriers can compete, irrespective of GoI's policy attitudes towards Gelf carriers.

Hari Seldon · Post by **Hari Seldon** » 12 Mar 2016 06:41

Suraj wrote:The Mallya issue has the potential to help ease the passage of the bankruptcy bill through parliament, which would be a very good win for GoI.

Isn't the bankruptcy bill being introduced as a money bill? Lawd knows the precedent has been set with the introduction of the aadhaar bill as money bill in this session.