Category Archives: Government

Business, Government, Jobs, Travel

Air India Pilots on Strike -29Sep2009

Air India canceled over 15 flights and bookings have been suspended for next 15 days after the talks have failed between the pilot and Management. Some 100 non-unionized pilot have gone for agitation, and have been reporting sick, against the cut in the Productivity Linked Incentives. Note that the strike by any union had already been declared illegal as the matter is under the conciliation of Labour commissioner. The cash trapped AI is under pressure to reduce it costs, which everyday owes Rs 4.7 crores in interest alone. AI wants to reduce its costs by 1300 crore a third of this has to come by restructuring the manpower cost.

Our View: This issue needs an early resolution as the passengers are losing out of this battle between management and Pilots. If this elongates the airline would see a costlier impact due to diversion of its customer traffic to other Airlines.

References:

http://timesofindia.indiatimes.com/news/business/india-business/Air-India-cancels-over-20-flights-suspends-bookings-for-15-days/articleshow/5066873.cms
http://www.ndtv.com/news/india/air_india_strike_no_headway_15_flights_cancelled.php
http://economictimes.indiatimes.com/articleshow/5067094.cms
http://www.rediff.com/money/2008/mar/15ai.htm

Business, Energy, Government

Indian Oil Corp (IOC) To Enter Nuclear Power Projects

Indian Oil Corp will do nuclear power generation. IOC, a Fortune 500 company and India’s largest oil refiner-marketer with $58 billion (Rs. 2,85,337 crore) in sales, has informed the government that it would form a joint venture with Nuclear Power Corporation of India (NPCIL). IOC will hold a stake of between 26 and 49 per cent.

This venture is on the back of the Indo-US nuclear deal, that can help in getting nuclear fuel.

The Nuclear Power projects listed by IOC for joint participation with NPCIL are proposed as follows:

  • Rs 14,000-crore nuclear power project at Kakrapar in Gujarat with a capacity of 1,400 mw
  • Rs 14,000-crore nuclear power project at Rawatbhata in Rajasthan with a capacity of 1,400 mw
  • Rs 18,000 crore project at Kundakulam in Tamil Nadu for 2,000 mw
  • Rs 28,500 crore project at Jaitpur in Maharashtra for 3,300 mw

So, a total of 8,100 MW of nuclear power projects are planned.

IOC’s chairman and managing director Sarthak Behuria said:

This is a step towards becoming a integrated energy major.” “We have held preliminary discussions with NPCIL and are currently working out the modalities.

A senior Petroleum Ministry official said an investment of Rs 220-825 crore per annum would be required depending on the equity option chosen by IOC. Investments would be required for a span of 5 years beginning 2010.

The official said the company has discussed the proposal with the ministry and IOC’s board on Monday approved plans to have a memorandum of understanding with NPCIL. “We have asked IOC to concentrate more on its core area of business which includes refinery, petrochemicals and marketing. It has assured us that the fund requirement for equity participation with NPCIL is comparatively small as compared to the investment in core areas,” the official said.

Source: Hindustan Times

We feel, IOC’s balance sheet should have no problem funding this venture, and in return, IOC will add a long term assured cash flow generating business, that could one day, have its own IPO. This development makes IOC’s stock a Buy on any near term correction.

Government, Security

Jaipur Bomb Blasts and Lessons

Rajasthan was all over news in India in May 2008 for multiple reasons – the Rajasthan Royals were rocking the IPL and coward terrorists killed about 70 people with their bombs. Everybody has spoken about the IPL, so lets leave that aside.

Let’s take the difficult question.
How the hell were terrorists able to plan and execute such attacks?
And how come even after 3 weeks, we have little headway in the case?
Even the redrawn photos have not come.

We are getting rich, but we remain stupid.
One of the most essential things needed in any populated area is this: CCTV or IP video cameras — which are continuously recording the events, so that footage can be reviewed later. Go to any large city in Europe/ America, and its full of cameras…these are essential investments for public safety — and we have not done that. In fact, the London terrorists were caught due to CCTV footage.

The Rajasthan State Govt said it will invest in improved security – but we will see when it happens.
For now, be alert in public places in India. You have to watch your own back.