Author
Ashish Sinha is an experienced business journalist who has covered FMCG, auto, infrastructure, tourism, telecom among several other beats. Ashish has keen interest in the regulatory scenario impacting different sectors. He writes on aviation, railways, post and telegraph, infrastructure, defence, media & entertainment, among a wide variety of other subjects.
Charges for preferential seating, check-in baggage, meals etc are borne out of DGCA Circular of March subjected to certain ridersSharp hike in ticket cancellation charges, proposal to charge passengers for their check-in baggage or charging extra for window /aisle seats by domestic carriers: any such special charges levied on the airline passengers over and above the air-ticket price stems out of a circular issued in March this year by the office of the Director General for Civil Aviation (DGCA).On March 24, the DGCA had issued the “Air Transport Circular 1 of 2015” titled ‘Unbundle of services and fees by scheduled airlines’. The circular said: “Considering the fact that unbundling of services and charges thereto has the potential to make basic fare more affordable and provides consumer an option of paying for the services which he/she wishes to avail, it has been decided by the Government to allow following services to be unbundled and charged separately on opt-in basis. These include Preferential seating, meal/snack/drink charges (except drinking water), Charges for using airline lounges, check-in baggage charges, sports equipment charges, musical instrument carriage, and fee for special declaration of valuable baggage (allow for higher unit on carrier liability).”The circular, however, came with certain riders: “The unbundled services must be provided on “opt-in” basis and not on “opt-out” basis. Charges for the unbundled services shall be fixed amount and shall not vary with the base fare for a particular sector/flight. Changes, if any, should be announced at least 30 days in advance by the airlines; and the scheduled airlines shall display the unbundled services and charges thereto on their respective websites in a transparent and conspicuous manner.” The riders also ensured that the airlines will be responsible for ensuring that the charges for the unbundled services are displayed by the travel portals/travel agents too,” it said.Taking a cue from this circular, which sources say is born out of years of continuous presentations and convincing the aviations authorities by the domestic airlines, three Indian low cost carriers had sent in their proposal to offer lower fare for passengers who fly only with cabin baggage. This low fare option was suggested to be in addition to the regular fare offered currently where 15 kg of check-in baggage is allowed. According to DGCA officials, the proposal will be examined to see whether the low cost carriers give substantial benefit to flyers for not carrying check-in baggage and avoid a situation where the 15-kg baggage is taken without adequate advantage to the flyer.In effect, this suggestion entails the option of offering two sets of fares to the air traveller for the same destination - low fares (around Rs 500-1,000 less depending upon the airfare) for only hand baggage and the regular ones (with 15 kg of baggage allowed).A similar initiative was undertaken by AirAsia India -- a JV of Malaysia's AirAsia and Tata Group -- in 2014 summer. But the carrier had to abandon the plans after a public outcry. Now, such a plan is part of the circular issued by the DGCA itself.Hiking Cancellation ChargesBut where the domestic carriers seems to have goofed up is the unilateral hike in ticket cancellation charges by not one but three airlines - IndiGo, SpiceJet and Jet Airways. DGCA has now begin a probe into the matter, officials said. In the meanwhile, the Air Passengers Association of India (APAI) said it would also approach the Competition Commission of India (CCI) on the issue citing it as an incident of cartelisation and an unfair business practice.Last weekend, SpiceJet raised its ticket cancellation charges for both domestic as well as international travel. According to the revised fees, which came into immediate effect, the airline is deducting Rs 1,800 as cancellation fees for a domestic ticket while the charges for cancelling an international ticket would be Rs 2,250. Spicejet, reports suggest, followed in the footsteps of IndiGo and Jet Airways. Both these airlines had steeply increased their cancellation charges in April.IndiGo's cancellation charges range between Rs 1,250 and Rs 2,250 depending on the number of days left before scheduled departure. Minimum cancellation charges, which have been pegged at Rs 1,250, are applicable only if the ticket has been cancelled one month or more before the date of departure. Jet's ticket cancellation charges range between Rs 500 and Rs 2,750 depending on the class of fare.ashish.sinha@businessworld.in
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Launch of Colors Infinity, Colors Infinity HD on DTH, Digital Cable to grow the genre: ExpertsEntertainment network Viacom18 has entered the English entertainment sector with the channels Colors Infinity and Colors Infinity HD. Both these channels will be made available on the direct to home (DTH) and digital cable platforms. The channels are expected to be on air in less than a month's time. Media planners and advertisers expect the launch will help expansion of the English GEC space both in terms of volume and value of advertising.In order to present a unique blend of content mix, Viacom 18 has signed multi-year deals with leading US and Europe based content creators including Warner Bros. NBC Universal, Twentieth Century Fox, BBC and Endemol Shine among others.According to Sudhanshu Vats, Group CEO, Viacom18 India has the second largest English speaking population. “English is seen as a ladder to personal progress. Colors Infinity aims to speak to this larger audience which goes beyond the metros and has never been addressed by the category. English is an extremely important space for us and with this move we will further strengthen our share in the category,” said Vats.Viacom 18, a joint venture between U.S. media conglomerate Viacom and India’s Network 18 Group, operates several channels in India including Colors in various Indian languages, Rishtey, Nickelodeon, Sonic, MTV, MTV Indies, Nick jr, VH1, and Comedy Central.The network has not announced any shows yet, but it will offer a gamut of genres including reality, drama, superheroes, comedy, fantasy, crime, and thrillers, the network said during its launch event two days ago. The channels will be co-curated by film director, producer, TV host and actor Karan Johar and actress Alia Bhatt.Experts said since the English language television market has developed over the years due to the long presence of channels like Star World, Zee Cafe, Zee MGM, Star Premiere, AXN and others. Industry estimates suggest that the English general entertainment channels have a market worth around Rs 350-400 crore in terms of advertising revenue built over past 10-12 years.“With more channels like Colors Infinity and its HD avatar, the genre may just take off in the next couple of years. Premium advertisers will get attracted to the viewer-demographics who will ultimately consume the English content on these channels. But much will depend on the content mix Colors offers,” said a senior media planner representing some major automobile and aviation clients.ashish.sinha@businessworld.in
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The move is aimed at shielding government companies from strict provisions of new Companies Act, 2013 After waiting for almost two years, now most of the Government owned companies have been granted a slew of exemptions under the new Companies Act, 2013. While many of the exemptions are copied from the old Companies Act 1956, there are some noticeable new exemptions too.For example, the Government companies are now not required to specify the policy on directors’ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters which are otherwise applicable to all companies. Also, there is no restriction on the number of directors a Government company can have. For non-Government companies, the new company laws caps the number of directors to a maximum of 15. Of course, non-Government companies can add directors beyond the 15 by passing a special resolution, which then will have to be communicated to the government.The Government companies will also be exempted from provisions relating to proportional representation for appointment of directors on the Board. Non-Government companies have to have proportional representations of directors on their respective board.A Government company is also not required to comply with provisions of section 196 dealing with the restriction on appointing or re-appointing any person as its managing director, whole-time director or manager for a term exceeding five years at a time.A Government company is also exempted of provisions which specify limits for overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits. This is not the case for non-Government companies.The provisions of Section 203 with respect to appointment of key managerial personnel, holding of office, period within which appointment to be made in case of vacation of office of key managerial personnel (KMP), will not apply to a managing director or Chief Executive Officer or manager and in their absence, a whole-time director of the Government company.Section 185 prohibiting granting of loans to directors and to any other person in whom director is interested shall not apply to Government companies in case such company obtains approval before making any loan or giving any guarantee.Another key exemption pertains to the provisions of related party transactions when a Government company is entering into contract or arrangement with another Government company. Section 188 of the new company laws prohibits companies from entering into related party transactions exceeding specified values without obtaining prior approval of shareholder and also restricts related party (who is a party to the contract) to abstain from voting. ashish.sinha@businessworld.in
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E-tailers are roping in women with hospitality industry background are roped in to deliver niche products for better customer experience Customers are really the kings and queens in the age of e-tailing. Not only are they a discerning lot, they are also fickle minded; always unsure of what they order, after they order. At such a time, an up and coming logistics service provider from Bangalore is thriving because of its women employees who deliver a unique service called “Daakiyaa Smile” short for ‘service till the last mile’. This service comes from a Bangalore-based boutique marketing and logistics company called Daakiyaa Marketing & Logistics Pvt Ltd. The company calls its self the “last mile enablers”. The service enables brand owners to connect with their e-commerce customers through women delivery persons. According to Rohit Singh, CEO and MD of the company, a number of brand-owners are concerned by the quality of representatives who deliver their goods. “The women in the Smile division understand the brand ethos of the products they are delivering. They deal with customers accordingly. “Niche products like lingerie and jewellery are dispatched through this service,” he says. The service can be availed across Delhi, Mumbai, Bangalore, Hyderabad among other cities. Online brands like Caratlane, Urbanladder, Fernsnpetals and Amrapali are using this service from Daakiyaa. The company also has a “Daakiyaa e-Motion” which is male-dominated because it implements deliveries of volume for product aggregator sites on the lines of Paytm and Fashionara. The company has hired the services of around 21 female employees who have prior experience from the hospitality sector. As per company, Daakiyaa Smile is pitched at brand-owners because it helps them maintain purchase-parity. This means the online customer benefits from the kind of person-to-person interaction otherwise associated with the offline shopping experience. “As a first in the e-tailing industry, we are bringing women to the forefront as the Brand Envoys. Traditionally, women were never the front-runners in the logistics industry, but as we move away from ‘logistics’ to ‘customer delight’ we believe women can add a lot of value to what we do,” says Singh. ashish.sinha@businessworld.in
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All it took was an open letter and a few Tweets for American singer Taylor Swift to bring Apple Music to its knees. The company, which will soon be starting a new service AppleMusic, has decided to pay the artists during the three-month free trial period and even beyond. Can the same happen in India? We will come to that in just a bit. Apple Music launches on June 30. In the US, it is priced at $9.99 per month for one person or $14.99 for families. In India, though the pricing is not official, or whether Apple Music will be launched simultaneously on June 30, some reports suggest it will and it will be priced at Rs 120 per month for one person or Rs 180 per month for family or six users. Apple Music includes a radio station with personalized playlists and a choice from millions of songs on demand. The service includes a live radio station called Beats 1, tools to find curated playlists or individual songs, offline listening and a social music network on which users can comment on music and share it. In addition to iOS devices, the service will also be available on Macs and even on Android, later this year. Now let’s turn to India. There are over 230 FM stations, 800-plus television channels and crore of Internet buffs who access music online. While royalties are getting paid to the film’s producers or the music companies, are the singers getting their due? Let me ask you about ISRA or Indian Singers' Rights Association? I bet many of us don’t even know what it is. But some of us do. It is around two year old society of Indian singers, as the name suggests. According to its website, ISRA aims to administer and control the exploitation/ utilisation of singer performances and collects Royalties as per Section 38A of the Copyright Act, 1957 and then distribute the Royalties to its member singers. Ashish SinhaISRA has also listed an elaborate rate plan across mediums. For example: If a singer’s songs are used by a broadcaster of Music-based TV Show/Programme, the Royalty shall be Rs 25,000 per song performance (even if it is part of a song). Similar rate is applicable for a non-music based TV show or serial. And for Broadcast to the public of the performance of a singer on a Music Channel, the Royalty is pegged at Rs 5,000 per hour or 5 per cent of the gross revenue of the Channel for that TV, whichever is higher. Royalty is similarly fixed for mediums like radio, internet, hotels, commercial establishments, commercial vehicle, and Public events among others. So far so good. But privately, singers say that getting a broadcaster or a commercial establishment to pay the royalty on playing their songs is an extremely difficult proposition. In fact, only last month a delegation of singers including Sonu Nigam, Kavita Krishnamurthy and Pankaj Udhas, among others, had met Union information and broadcasting Minister Arun Jaitley seeking his intervention. They wanted to ministry to direct certain broadcasters to "stop violations of the Performer's Right", in line with the provisions of the Copyright Act. As per the provisions, which have been introduced retrospectively, lyricists and singers should get 50 per cent royalty on any commercial use of their songs. In fact, according to Sanjay Tandon, the MD of ISRA, not even one TV channel or radio station is paying any royalty to any singer. As per the amended Copyright laws, royalty can be collected on original songs played commercially by any media, including ring tones by telephone companies, call waiting music, any songs used in any manner by any commercial establishment etc. And the law covers songs going back in time almost half a decade. So when Taylor Swift said the Apple Music plan was "unfair", arguing Apple had the money to cover the cost, the company obliged by announcing to the world it will pay for the trial period too. We wonder when that will be the case for our own singers? May be very soon! ashish.sinha@businessworld.in
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Japan's SoftBank Corp on Monday (22 June) announced investment of $20 billion in setting up solar power projects in India in partnership with telecom giant Bharti Enterprises and Taiwan's Foxconn. The joint venture entity will be called SBG Cleantech, which will be headquartered in Delhi and will focus on solar and wind energy. SBG Cleantech will have Manoj Kohli, a Bharti veteran, who until recently led Bharti’s emerging businesses, as executive Chairman and Raman Nanda, as the CEO. Softbank, the Japan-based telecommunications and Internet major, had previously committed to invest $10 billion in India over a ten year period. In a news conference, Softbank said that the three firms – Softbank, Bharti and Foxconn -- will set up 20 Giga Watts of renewable energy projects in India. SoftBank will hold majority stake in the joint venture, SBG Cleantech Ltd, while Bharti Enterprises Ltd and Foxconn Technology Group will have minority stakes. Its CEO Masayoshi Son said Foxconn will help with planned solar equipment manufacturing for the projects. The three firms are also looking at manufacturing equipment in India, he added. India has recently set a target of 100GW solar and 60GW wind target by 2022. Government of India’s mission is to achieve 24×7 power for all and the renewable energy target by 2022. India has achieved a base of 3.7 GW of solar power. The venture will invest in renewable energy plants across India. SBG Cleantech intends to participate in the 2015-16 round of solar power plant tenders under the National Solar Mission (NSM) program and state-specific solar programs. Sunil Bharti Mittal, chairman of Bharti Enterprises said: “This project will immensely contribute to the Hon’ble Prime Minister’s vision of meeting the country’s energy demands through clean sources.” "At Bharti, we believe in projects that have a transformational impact on society. In line with this vision, we are participating in a renewable energy venture with SoftBank and Foxconn which has the potential to transform the Indian economy," Mittal, said. Son and Mittal will be visiting Andhra Pradesh and Rajasthan over the next two days to talk to state government officials about potential projects, Mittal said at a news conference. He said that subject to winning project bids, land and other clearance, the first project should get off the ground in 12 to 18 month, adding that land acquisition should not be an issue since the venture will be using arid, non-cultivable and non-irrigable land. ashish.sinha@businessworld.in
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The study suggests that rainfall over Central India has been reducing over a period of last ten decades. However, Monsoon in the first fortnight of June is 11 per cent above normalA study on Monsoon published in the Nature Communications journal may just upset all the calculations done by the economist, market experts and trade analysts. The study, conducted by the Pune-based Indian Institute of Tropical Meteorology says that the monsoon in India will be weaker compared to previous years. The reason: Indian Ocean is getting warmer. When this happens, the result is dampening of summer monsoon circulation which leads to reduction in rainfall over parts of India and other countries. The summer monsoon circulation means seasonal changes in atmospheric circulation and precipitation associated with the asymmetric heating of land and sea. When land gets warmer, the monsoon winds bring in the clouds and rains from sea. But if the reverse happens, the rainfall over land will get depleted. The study suggests that rainfall over Central India has been reducing over a period of last ten decades. However, Monsoon in the first fortnight of June is 11 per cent above normal. In the eventuality of lesser rainfall over Central India, there will be an adverse impact on agricultural produce. Farmers have already been hit hard by the unseasonal rainfall in the month of March and April. Deficient monsoon can result in a healthy business for the makers of pump sets, pipe and generators. It can also prolong the summer thereby generating higher sales for air conditioners, refrigerators and other white goods in urban India. For the farmer, the production of pulses will be worst hit on account of poor rainfall. But a good monsoon has a positive ripple effect on the sales volume of consumer goods, two-wheelers, tractors, agrochemicals, seed makers, pesticide firms among others. Market experts have been suggesting a buy status for the stocks of companies like ITC, Hindustan Unilever, Dabur India, Hero MotoCorp, Bajaj Auto, Eicher Motors, M&M, Rashtriya Chemicals, Deepak Fertilisers, National Fertilisers amongst others. A Bank of America report suggests that the Reserve Bank of India may hold on to the rates this year. If at all it cuts the rate, it will be only in the early parts of next year. In case the monsoon is normal, then the RBI can cut the rates by 25 basis points in August and in line with the expectations of the finance minister. ashish.sinha@businessworld.in
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