Author: Anu Sharma

Government mulls idea of a Digi Yatra ID, face to become passenger’s boarding pass

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In an effort towards making the face of a passenger the boarding pass, the union civil aviation ministry has formulated a common set of standards to enable facial recognition technology for biometric-based boarding under its Digi Yatra initiative.

The initiative is expected to encourage voluntary adoption of the new service among the passengers to enable a paper-less and hassle-free travel experience to passengers.

A technical committee including members from state-run Airports Authority of India (AAI) and representatives from airports of Delhi, Mumbai, Bengaluru and Hyderabad were given the task to formulate these standards.

According to sources aware of the development, under the new plan, a passenger can create a Digi Yatra identity using a valid identification proof including voter card, driving license, Aadhaar among others, while booking a ticket and then after one-time verification process at the airport, the passenger’s face will be used as a mark of identity and boarding pass.

“The plan is to take a fresh photograph of the passenger at the airport gate and verify the name with a government-approved identification card like voter card or driving licence, whenever a passenger flies next, her travel details will be saved against her unique digital identity number and you will not be required to show any physical identity proof,” the official said.

The earlier approach to primarily use Aadhaar as the basis for this programme had hit a roadblock after a recent verdict at the Supreme Court.

The recent ruling by the apex court banning compulsory Aadhaar usage everywhere, other than social benefit schemes and subsidies, further made government finalise a non-Aadhaar route for Digi Yatra, sources privy to the developments told CNBC-TV18.

“We did not want to face any legal hurdles. So, it’s up to the passenger to decide, which identity proof he or she wants to use for the one-time identification. After that, this data will be stored in a central database, which may be jointly owned by all airport operators,” a senior government official said.

The directorate general of civil aviation is set to soon release draft regulations on the Digi Yatra initiative for public consultation and once the rules are finalised, the airport operators will start placing orders and issuing tenders for the required biometric infrastructure.

While AAI officials expect the project to take 6-7 months for implementation at Pune, Vijayawada, Kolkata and Varanasi, private airport operators such as Bengaluru are ready to put the plan into action immediately, said people familiar with the matter.

A recent initiative by the Airports Economic Regulatory Authority of India to launch a pilot for linking passenger experience with aeronautical tariff — charges levied on airlines by airport operators — and the new proposed formula for greenfield airports to link tariff with services, may be another trigger for airport companies to quicken implementation of the plan.

The adoption of facial recognition-based boarding is also expected to result in better security, enhancing customer experience and reduce the waiting time.

“Throughput at airport goes up, bottlenecks come down, you can potentially do more volumes from existing infrastructure so that reflects in non-aeronautical revenue,” an industry source said.

Non-aeronautical revenues critically determine the financial viability of an airport, because these revenue sources tend to generate higher profit margins in comparison to aeronautical activities.

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Government to transfer Rs 29,464 crore of Air India’s debt to special purpose vehicle

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government has decided to transfer Rs 29,464 crore of Air India’s debt to a special purpose vehicle to clean up the distressed carrier’s balance sheet, sources close to the development told CNBC-TV18.

“In an attempt to revive the debt-laden carrier, the union finance minister chaired a meeting on September 7 and it was decided to transfer Rs 29,464 crore of Air India’s debt to a special purpose vehicle,” one of the sources said.

In order to obtain approval from its lenders, the airline also conducted a meeting with a consortium of bankers on September 17 to “work out pre-conditions for shifting of loans.”

“During the meeting, it was further discussed that as this would require transfer of loans from one entity to another, approval from Reserve Bank of India (RBI) will be needed as this would comprise second restructuring,” another source added.

The airline, which had outstanding loans of over Rs 48,400 crore as on March 31, 2017, has now identified the list of loans that can be transferred to the special purpose vehicle, according to the sources.

Confirming the same, an aviation ministry official, said they have “incorporated the special purpose vehicle.”

Earlier this month, the union civil aviation ministry had said that Air India has received Rs 2,100 crore of government guaranteed borrowing and around Rs 860 crore of equity infusion under the first tranche of financial support plan.

This aid was over and above the budgetary support and the turnaround plan for Air India.

The measures can be seen as an attempt to make the airline attractive for investors as the government has consistently said that it remains committed to divestment of the carrier.

The government had failed to receive even a single expression of interest during the divestment process initiated on March 28, under which 76 percent stake in Air India was at stake.

The government has been infusing equity into the carrier since 2012 in order to help the airline pay all government-guaranteed aircraft loans and interest.

At the same time, a financial restructuring plan was also implemented under which high-cost working capital loans were converted into long term debt, carrying lesser rates of interest.

Under a turnaround plan approved in 2012, the airline was required to generate Rs 5,000 crore over a period of 10 years starting March 2012 by monetising its assets.

The turnaround plan includes budgetary support amounting to Rs 30,231 crore spread over 10 years till March 2021 and equity support for payment of principal or interest of non-convertible debentures.

The airline has already received equity infusion of around Rs 27,200 crore till March.

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Cabinet likely to take up new telecom policy on Wednesday

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Cabinet is likely to take up new telecom policy on Wednesday, according to a source with the knowledge of the matter.

The telecom policy, branded as the National Digital Communications Policy, is expected to attract investment of around $100 billion and create 40 lakh new job opportunities.

The draft policy was released in May with an aim to enhance contribution of digital community sector to 8 percent of India’s gross domestic product from less than 6 percent in 2017 and provide universal broadband coverage.

The broadband coverage will include deployment of 5 million public wi-fi hotspots by 2020 and 10 million by 2022 through a National Broadband Mission and also seek to implement a ‘Fibre First Initiative’ to take fibre to the home by giving optic fibre cables the status of public utility.

The policy has outlined three major goals, which includes Connect India for robust digital communication, Propel India for harnessing the power of emerging digital technologies and Secure India for safeguarding the digital sovereignty of India. The draft policy aims to achieve these missions by 2022.

The notification with respect to in-flight connectivity is also likely to be released “any time now,” the source mentioned above said.

In-flight connectivity would enable calls and internet services during flights in the Indian airspace.

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Indian Railways’ full electrification to improve throughput, line capacity and train speed

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The complete electrification of broad gauge network of Indian Railways will increase the line capacity, train speed and throughput by 10-15 percent, a source in direct knowledge of the matter told reporters on Monday.

Electric mobility in railways was given a big boost two weeks ago, when the union cabinet approved electrification of 108 sections covering 13,675 route kilometres of tracks by 2021-22 for over Rs 12,000 crore. The project is expected to result in savings of over Rs 13,000 crore per annum.

While the railways currently has around 5,500 diesel locomotives and as many electric engines, it wants to gradually electrify all the polluting and high-maintenance old diesel locomotives.

“Mid-term rehabilitation for a diesel engine, which generally takes place after the engine has run for half its lifecycle of 36 years, costs Rs 5 crore. For two crore, our Indian engineers are electrifying these and also, increasing their efficiency,” the source said.

After long rounds of testing and trials, Indian Railways has already completed electrification of two diesel locomotives and two more are in the process, the source added.

On complete electrification by 2022, Indian Railways’ diesel bill will come down to around Rs 1,000 crore from around Rs 17,000 crore currently and its electricity bill will jump to Rs 13,000 crore from 9,000 crore now, the source added.

With regard to the $2.5 billion deal with the US-based General Electric for supplying 1,000 diesel locomotives, the plan is to procure around 100 units per year, the source said adding that these will be fuel-efficient.

While the power requirement for broad gauge will increase to around 3,000 megawatt (MW) by 2022 from nearly 2,000 MW currently on complete electrification, Indian Railways is in talks with states including West Bengal and Odisha for procuring power through open access, which will reduce the cost burden.

The effort is to increase procurement of power though renewable sources such as wind and solar, the source said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow