Economic & Business Services Team (BEST)
Economics & Investment Updates (7)
1. Spicejet Airline May Survive
There are indications that beleaguered Spicejet airlines may be salvaged from its deep financial with the coming back of its co-founder Ajay Singh. Corporate circles are agog with the rumor that the alumni of the Delhi IIT and Cornell University has the task cut out for pumping oxygen into airlines. Ajay Singh is the man Friday since he is close to the establishment and is often seen in the corridors of power in the recent days holding parleys with ministry officials and airline senior executives. In the meantime, there is also a news floating that the present owners Chennai based Marans can pump money for the revival of the airlines. But the catch is that the South based media baron is caught up in many serious cases along with his brother, who was an ex-minister in the UPA 2 cabinet.
2. PMO to fast track investment plans
Buoyed by the inadequate pace in which the cleared projects are implemented, Prime Minister's office is said to have control of the project monitoring works. This experiment was done by the previous government towards the close of the term of UPA 2. It may be noted that several scams that have erupted during the previous governments such as 2G, coal, Commonwealth etc. were on account of the fast rtracking of the project without following rules and regulations.There are also vested interests in operation who want fast tracking based on the premise that: you give us a long rope and we will deliver. They did deliver in all cases but being in the wrong side of the law. Analysts say that since Modi administration has the benefit of knowledge of what that had happened to the previous regime, they will be careful in striking a balance.
3. Gas Allocation
The government has taken a decision to give top priority to companies selling CNG and piped cooking gas while allocating gas.Presently, fertilizer manufacturing plants and liquefied petroleum gas (LPG) companies have a priory over other utilities.
4. SC Turns Down Pleas Against Coal Ordiance
The apex court has turned down pleas against promulgation of coal ordinance. The aggrieved companies has challenged the legality of imposing penalty of rs 295 per tonne on illegally mined coal, which has cast huge liability on the companies. However, the court refused to entertain their pleas. Now it is clear that coal auction will be round the corner.
