Month: January 2019

In-flight and maritime mobile services: DoT to hold meeting with industry players on January 4

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

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The telecom department (DoT) will hold a meeting on January 4 with telecom operators, airlines and shipping companies to discuss a road map for in-flight and maritime mobile services.

The government has so far received application from only two companies Hughes India and Tata Telenet for in-flight and maritime connectivity (IFMC) and is expecting a rise in the number of applicants in days to come.

“DoT will hold a meeting with IFMC applicants, telecom operators, airlines and shipping companies on January 4 to discuss road map of the service. We expect more companies to apply for the licences,” an official source told PTI.

The government has notified rules for providing mobile phone services during air travel and ship voyage within the Indian territory.

Indian and foreign airlines and shipping companies operating in the country can provide in-flight and maritime voice and data services in partnership with a valid Indian telecom licence holder.

The in-flight and maritime connectivity (IFMC) can be provided using telecom networks on ground as well as using satellites.

Hughes India, one of the applicants, has warned that high satellite bandwidth charges are likely to play a spoiler in the uptake of in-flight mobile services in India as these would make the facility costlier by 30-50 times at Rs 700-1,000 for a two-hour journey.

The chief technology officer of broadband technology firm Hughes India, K Krishna, told PTI that satellite bandwidth charges in India are 7-8 times higher compared to other parts of the world due to the condition that bandwidth can be procured from Indian Space Research Organisation only.

“Passengers are not going to pay 50 times higher price for Internet on a two-hour flight. It has to be extremely affordable and for that to happen open sky mechanism is very much required. You can’t be restrictive that only Indian satellite needs to provide capacity. Monopolistic policy won’t work. The policy will become a duck if these issues are not addressed,” Krishna had said.

The Hughes India CTO also said restriction imposed in the licence that an Indian service provider can provide connectivity within Indian airspace and waters would be a disadvantage for both the service provider as well as airlines and shipping firms.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

More coordination among financial sector regulators needed, says RBI

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

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The Reserve Bank on Monday pitched for greater coordination between financial sector regulators to plug any possible gaps which may be exploited by players.

The comments come in the wake of the crisis at infra lender IL&FS and also a few years after chit fund scams, which had exposed certain chinks.

“…there needs to be further coordination among the regulators so as to identify possible regulatory arbitrage opportunities on account of regulatory gaps or perceived and real informational asymmetries amongst the regulators,” the RBI said in its half yearly Financial Stability Report.

Such a move is necessary because of the greater inter-connectedness in the financial markets and potential of contagion, the central bank said.

It can be noted that there already exists a platform created by the government for inter-regulatory coordination called the Financial Stability and Development Council.

The RBI has commented directly on the IL&FS crisis in the report, saying it will have a closer look at the oversight of financial conglomerates like IL&FS from here on.

It said the mutual fund (MF) industry (regulated by capital markets watchdog Sebi) has an exposure of Rs 6,500 crore of the overall Rs 90,000 crore debt of the troubled infra financier and underlined that the asset management
companies are pass through vehicles which have passed the risk
to investors.

Commenting on the high concentration of the MF portfolios, it said such an aspect has implications on market stability and pitched for a diversified portfolio.

It also pitched for an “an effective ALM (asset liability mismatch) regime” in NBFC sector, saying such a move will up the systemic resilience.

The report also said that trade volumes are yet to be significantly affected by the ongoing trade tension between the US and China as seen in the growth in world GDP.

For the domestic equity markets, it said a gradual normalisation of global liquidity and re-rating of risky assets imply that the earnings outlook and domestic flows will play a major role in sustaining valuation and also
overseas investor flows.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

AIOVA charges Ekart of firing 300 people, Flipkart says temp staff brought in for limited time

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

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Online sellers’ representative body AIOVA on Monday alleged that Flipkart’s delivery unit Ekart has fired about 300 seasonal workers, but the Walmart-backed e-tailer said such workers were hired through local third-party vendors for limited duration especially during festive time.

In a tweet, the All India Online Vendors Association said: “Employment practices of Ekart, owned by Flipkart and Walmart $wmt under scrutiny. 300 seasonal workers fired in Kheda. Lot of sellers blacked out. 100 years ago MK Gandhi started first Satyagraha from Kheda”.

Flipkart in a statement said it continues to work with many reputed local third-party vendors who support in temporary staffing solutions to cater to festive demands.

“In cases where we have to reduce our contractual employee strength (contracted by the vendor), we do offer pre-agreed-upon severance packages, which has been the case here as well. We are working closely with our third-party vendors to ensure that they fulfil their obligations, statutory or otherwise, with full fairness,” the statement added.

Flipkart said it remains committed to be a partner with Gujarat to foster inclusive growth in the state.

“We continue to make deep infrastructure investments including in warehouses and fulfilment centres, and are proud to create thousands of new local jobs, contributing to the local economy,” the statement said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

23 goods and services to get cheaper from January 1 as reduced GST rates kick in

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

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In a new year gift to the common man, the government has notified reduction in GST rates on 23 goods and services, including movie tickets, TV and monitor screen.

The consumers will pay less for these items of common consumption as the incidence of Goods and Services Tax (GST) on them will come down from Tuesday.

The GST Council on December 22 decided to cut tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks and exempted frozen and preserved vegetables from the levy.

The Council had rationalised the 28 percent slab and restricted the highest slab to luxury, demerit, and sin goods, besides cement, large screen TV, Air Conditioners and dishwashers.

The goods on which GST has been lowered to 18 percent from 28 percent at present include pulleys, transmission shafts and cranks, gear boxes, retreaded or used tyres, power banks of lithium ion batteries, digital cameras, video camera recorders and video game consoles.

The GST Council has also decided to slash tax rate on parts and accessories for the carriages for disabled persons from 28 per cent to 5 percent. Also third party insurance premium of goods carrying vehicles has been reduced from 18 per cent to 12 percent.

The other items which will attract lower GST rate of 5 percent include marble rubble, natural cork, walking stick, fly ash blocks.

Music books and vegetables (uncooked or cooked by steaming or boiling in water), frozen, branded and put in an unit container and vegetables provisionally preserved but unsuitable in that state for immediate consumption have been exempted from GST.

Services supplied by banks to basic savings bank deposit account holders under the Jan Dhan Yojana will not attract the GST.

Air travel of pilgrims by non-scheduled/charter operations being facilitated by the government under bilateral arrangements will attract a lower GST rate of 5 percent.

GST on movie tickets costing up to Rs 100 has been cut to 12 per cent, from 18 percent. Also tickets over Rs 100 will attract 18 percent GST, against 28 percent earlier.

Monitors and TV screens up to 32 inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

WCD Ministry needs to pursue Finance Ministry for fund allocation, says panel

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

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There has always been a gap between the projected budgetary demand of the Women and Child Development Ministry and the actual allocation, a parliamentary committee has pointed out, urging it to pursue the Finance Ministry for fund allocation.

Terming this gap a cause of “serious concern”, the committee said either the WCD Ministry’s projected demands are “not realistic” or it is not able to convince the Finance Ministry to meet them.

“In both cases, it is the implementation of the schemes and programmes that gets affected, resulting in depriving the targeted beneficiaries the benefits of various schemes,” the committee pointed out.

It said this gap “ultimately affects the implementation of some of the most important programmes of the Ministry catering to the needs of most vulnerable sections of the society i.e. women and children”.

The WCD Ministry needs to pursue the Finance Ministry accordingly for fund allocation as per requirement, it added.

In the year 2015-16, funds worth only 58 percent of the Ministry’s overall projected demand of Rs 30,807 crore were allocated, the committee noted.
In the year 2016-17, around 69 percent of the Ministry’s projected demand was met. For 2017-18, the allocation was around 87 percent and in 2018-19, it was about 80 percent of the projected demand.

The committee said that barring five schemes — Support to Training and Employment Programme For Women, Ujjawala, Information and Mass Education, Women Helpline and One Stop Centre Scheme — the allocation of funds for all other schemes of the Ministry has been less than the projected demand.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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

Home prices eased in last 5 years, despite better housing credit growth, says RBI

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

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Despite higher housing credit growth and better bank lending rates, house prices in the country have been cooling in the last five years, a Reserve
Bank of India (RBI) report said.

According to the Financial Stability Report released by the RBI on Monday, the all-India housing price index reduced to 5.3 percent during April-June, 2018, while housing credit also declined to 15.8 per cent as compared to Q1
FY2015, which stood at around 16 percent and close to 17 percent, respectively.

“Housing prices have been cooling in the last five quarters, despite accelerated housing credit growth and favourable bank lending rates,” the report said.

The large pile of unsold homes resulting from tepid demand conditions gradually led to moderation in price increase.

According to property consultant JLL India, housing sales in 2018 is estimated to have risen 47 percent in seven cities, although on a lower base.

“There has, however, been a pick- up in house sales in first half of fiscal 2019 leading to a reduction in unsold inventory, thereby improving the house sales-to-inventory ratio for major cities,” it said.

In Mumbai, the house sales to unsold inventory ratio stood at 25, while at Ahmedabad it was over 45, in Bengaluru at 40, Chennai at 40, Hyderabad at 70, Kolkata at 18, NCR at around 10 and Pune at 60.

“Notwithstanding improved consumer sentiments consequent to stabilisation of disruptions in the implementation of GST and RERA, the recent spike in launches is mostly driven by government schemes to promote affordable housing,” the report said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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