Showing posts with label ATF. Show all posts
Showing posts with label ATF. Show all posts

Saturday, April 20, 2013

National

Lower GDP Stats
Despite desperate attempts of the government to move the numbers in the economy’s favour, GDP growth projections for the current fiscal year remains at 6.9% against last year’s figure of 8.4%. The slowdown in investments and low industrial output are the reasons for this decline. However, finance minister Pranab Mukherjee is still confident that the numbers will look up when full data for the year 2011-12 becomes available. The government has already run up fiscal deficit of 92.3% of its budget estimates in the first nine months of the current year, mainly due to less than anticipated tax collections. The central government has managed to raise Rs 5.2 trillion in revenue during the period, which is 61% of the budgeted target for the entire fiscal. The figures indicate that the government will find it difficult to meet its budgeted fiscal deficit target of 4.6% for the current fiscal. A lower than expected 1.8% growth in the index of industrial production (IIP) for the month of December 2011 has not helped matters either. Meanwhile, much to the relief of the government, the wholesale price inflation is on a 26 month low and is expected to stay at these levels at least for the next few months.

Airlines cheer
Much to the relief of airlines the group of ministers (GoM) has okayed the proposal for direct import of aviation turbine fuel (ATF), which contributes around 40% of the overall operating cost of an airline. However, the decision is yet to get the Cabinet go-ahead, which will open the way for implementation of the scheme. Airline operators have been lobbying for quite sometime for either imposing a flat 4% sales tax or to allow them to import ATF directly. The GoM’s approval of the scheme sent share prices of airlines like Jet Airways, Kingfisher and SpiceJet on an upward spiral as investors cheered the move. Allowing direct import of ATF will help airlines to save on sales tax, which varies from state to state. The absence of a uniform sales tariff has forced airlines to bear the cost of around 30% rise in their fuel expense on a y-o-y basis. Surprisingly, ATF in India is at least 60% higher than prices in West Asia or even Southeast Asia. ATF makes for 40-50% of the total cost for airlines companies. No wonder that operators like Jet and SpiceJet have been complaining that it’s the high fuel cost that has been responsible for their December quarter losses.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
 
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Friday, December 07, 2012

Multi-billion rupee achievements

MCX still has a long way to go despite the multi-billion rupee achievements. A B&E exclusive interview....

B&E: Of late, you have been undertaking some major overseas activities, like a big stake in Middle East’s largest commodity bourse – the Dubai Gold & Commodities Exchange (DGCX), running exchange platforms in Mauritius through FTIL, etc. How are these go-global steps helping you to cement your place in the global arena?
JS: There is huge potential lying unlocked in emerging economies. In Africa, there are 53 countries, with economic growth rates of around 6% annually for the past several years. In addition, we have India and China registering robust growth rates. Together, there is tremendous growth in Africa and Asia, and this growth must be captured so that its benefits are shared by the largest number of people, and not just by a privileged few. Setting up of exchanges in the regions of Asia, Middle East and Africa are thus part of FT Group’s strategy to harness this enormous growth on organised market platforms, whose benefits will reach out to the market participants including the common people of these emerging markets.

B&E: There was news that you are planning comex operations in Singapore through your joint venture company Singapore Mercantile Exchange. What is the present status of that plan?
JS: SMX is not a JV company but a new venture of FT, which will operate under the monetary Authority of Singapore. Commodities will definitely form a critical part of the asset classes along with other asset to be traded like energy (including electricity), ATF, currency, etc.

B&E: It was really unfortunate that during last year, you had to put aside your IPO plans, keeping in mind the existent poor market conditions. Any clue as to when the plan has been deferred until?
JS: As of now, we have no such plan.
 

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

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