Air In­dia’s Rs 750 crore bills out­stand­ing

Vayu Aerospace and Defence - - Aviation Defence & Inindia -

First HAL-built civil­ian Do 228

Min­is­ter of State for Civil Avi­a­tion, Jayant Sinha, in­au­gu­rated struc­tural assem­bly of the first HAL-built Dornier 228 in­tended for the civil­ian mar­ket at HAL’s Kan­pur fa­cil­ity on 11 De­cem­ber 2016. HAL CMD T Su­varna Raju ex­pects the first air­craft to roll out by April 2017. The Do 228-201 is a 19-seat com­muter air­craft cur­rently manufactured at HAL’s Trans­port Air­craft Divi­sion (TAD) in Kan­pur, and is pro­moted by HAL to be a “most suit­able prod­uct un­der ‘Make in In­dia’ to sup­port the Re­gional Con­nec­tiv­ity Scheme (RCS) of the Min­istry of Civil Avi­a­tion.” As a proac­tive step in this di­rec­tion, HAL’s board had sanc­tioned Rs 100 crore for two civil vari­ants of the Do 228, even though there are no air­line or­ders for th­ese air­craft yet. “We see a big busi­ness op­por­tu­nity in this seg­ment for next 10 years,” said Su­varna Raju.

Air In­dia has gen­er­ally been at the re­ceiv­ing end of crit­i­cism for its poor per­for­mance and huge losses but it was re­cently re­vealed that the Gov­ern­ment of In­dia owes the air­line a mas­sive Rs 750 crore. The flag car­rier is utilised for fly­ing VVIPs such as the Pres­i­dent, Prime Min­is­ter and politi­cians with ‘Z’ cat­e­gory se­cu­rity cover. Still, Air In­dia made a small op­er­at­ing profit of Rs 105 crore in the pre­vi­ous fi­nan­cial year (2015-2016) but re­mains loss-mak­ing over­all ow­ing to a large debt bur­den, among other fac­tors. The air­line had re­ceived a bailout pack­age of Rs 30,000 crore from the pre­vi­ous UPA gov­ern­ment, but needs ad­di­tional funds to sus­tain its turn­around plan.

Navi Mum­bai air­port de­lay

The Navi Mum­bai in­ter­na­tional air­port is un­likely to meet its 2019 inau­gu­ral dead­line with three of the qual­i­fied bid­ders rais­ing ques­tions about the time­line and cost over­runs in­volved in ex­e­cut­ing the Rs 16,000-crore project. The four bid­ders who had qual­i­fied for the project are Tata Realty & In­fra­struc­ture, Hi­ranan­dani Group, GMR In­fra­struc­ture and GVK Power & In­fra­struc­ture. The first three have ex­pressed se­ri­ous con­cerns on com­plet­ing the project by 2019. GVK In­fra­struc­ture is the only firm that has not ex­pressed reser­va­tions to meet the 42-month dead­line which the state gov­ern­ment plans to set.

A Tata Realty of­fi­cial said the dead­line set by City and In­dus­trial De­vel­op­ment Cor­po­ra­tion (Cidco), a plan­ning agency of the state gov­ern­ment, was “ridicu­lous.” While Cidco an­tic­i­pates com­ple­tion within three-and-a-half years, but “ground-lev­el­ling work it­self will likely take over two years.” How­ever, Cidco still claims that one runway will be op­er­a­tional by 2019 and the en­tire air­port ready by 2020.

Strate­gic dis­in­vest­ment in Pawan Hans

Mov­ing ahead with the strate­gic sale of Pawan Hans (erst­while He­li­copter Cor­po­ra­tion of In­dia), on 13 Jan­uary 2017 the Gov­ern­ment an­nounced its in­ten­tion to sell off its en­tire 51 per cent stake and to trans­fer man­age­ment con­trol. Pawan Hans is a joint ven­ture where state-owned ONGC presently holds 49 per cent. As per the pub­lic no­tice, is­sued by the Depart­ment of In­vest­ment and Pub­lic As­set Man­age­ment, a trans­ac­tion ad­vi­sor is to be iden­ti­fied from “re­puted pro­fes­sional con­sult­ing firm, in­vest­ment bankers, mer­chant bankers, fi­nan­cial in­sti­tu­tions and banks” who would pro­vide ad­vi­sory ser­vices and man­age the strate­gic dis­in­vest­ment process. The dead­line for send­ing the ap­pli­ca­tions is 2 Fe­bru­ary 2017.

In­dian MRO mar­ket to grow by 2036

In De­cem­ber 2016, KPMG in In­dia un­veiled a back­ground pa­per on the MRO sec­tor that un­der­lined the growth of the civil avi­a­tion, and pro­jected that In­dian car­ri­ers will grow to op­er­ate some 1,740 air­craft in to­tal over the next 20 years, while the MRO mar­ket would swell com­men­su­rately to $5.2 bil­lion by 2036. The pa­per was for­mally re­leased by Ash­wani Lo­hani, Chair­man and Man­ag­ing Di­rec­tor, Air In­dia, in the pres­ence of Stephane Lau­ret, CEO, Safran In­dia, Dr BP Sharma, CMD, Pawan Hans, HR Ja­gan­nath, CEO, Air In­dia En­gi­neer­ing Ser­vices, Ravi Menon, Ex­ec­u­tive Di­rec­tor, Air Works In­dia, and Pu­lak Sen, Founder Sec­re­tary Gen­eral of the MRO As­so­ci­a­tion of In­dia. The pa­per high­lighted the op­por­tu­ni­ties in the In­dian MRO in­dus­try, the im­pact of the new Na­tional Civil Avi­a­tion Pol­icy (NCAP 2016), the pro­posed Goods and Ser­vices Tax (GST), the Re­gional Con­nec­tiv­ity Scheme (RCS), and ad­dress­ing chal­lenges re­lated to ser­vice qual­ity, leas­ing, fi­nanc­ing, cer­ti­fi­ca­tion and skill de­vel­op­ment.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.