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Kaleidoscope January, 2017 5 6 KaleidOscope January, 2017 CHAIRMAN’S DESK

he Civil Aviation Sector has come to play a major role in today’s globalized economy. It is growing at an incred- Tible pace and the future of the sector is very bright. The Hon’ble Prime Minister, Shri Narendra Modi, in a speech recently stated that “…In civil aviation, India is currently the eighth largest market in the world and is set to become the world’s third largest by year 2034.” The significant growth of the sector could be mainly credited to the increase in tourism, development of smart cities, with emphasis on setting up modern airports, and acquiring low cost carriers to improve regional connectivity. Also the middle class population of India, over last few years, has grown both in numbers and their earning capacity, which in turn implies that travelling by air is be- coming more and more affordable. According to the available data, the passengers carried by domestic airlines during Jan-Nov 2016 were 903.36 lakhs as against 733.82 lakhs during the corresponding period of the previous year, thereby registering a growth of over 23%. With the increasing affordability of Indian customers, the future of the aviation sector seems to be on a high growth trajectory. However, there are also significant challenges facing the sector. The irony of the Indian Aviation Sector is seen through the fact that though there is a promising future, yet India remains the least penetrated market, with 0.4 trips per capita per annum, compared to 2 in the US. Therefore, the next big opportunity for the sector lies in broadening the base through greater air connectivity in Tier II and Tier III cities. For this, there is an urgent need to focus on building skilled manpower that will fill the gap between the demand and supply for a variety of disciplines related to the sector. Building new airports and expanding the existing ones will also enhance the growth of aviation sector. India is now also seen as a favorable destination for foreign investors and this has been achieved through Government of India’s ‘Make in India’ Initiative and also allowing FDI through the automatic route upto 100%. The year 2016 has proven to be a turnaround year for the Aviation industry and the first integrated Civil Aviation Policy has been brought out by the Civil Aviation Ministry with the aim to make the country’s regional air connectivity a reality, besides its safety and affordability. However, Indian Civil Aviation industry still has a long distance to go. With right policies and a balance between cost, quality and service, the sector would certainly be able to achieve its ambitious growth targets. We have come out with this special issue of KALEIDOSCOPE dedicated to the Indian Civil Aviation Sector, its challenges and opportunities. I am glad that this issue would serve to be an important document for the various stakeholders of this sector, service providers as well as the users.

Ved Prakash Chairman, SCOPE

Kaleidoscope January, 2017 7 ARTICLE

National Civil Aviation Policy, 2016: Salient Features

The Minister of Civil Aviation Mr. P. Ashok Gajapathi Raju released the National Civil Aviation Policy 2016 on 15th June, 2016. This is the first time since independence that an integrated Civil Aviation Policy has been brought out by the Ministry. Speaking on the occasion Mr. Raju said that the centre-piece of the policy is to make regional air connectivity a reality. He said that the policy aims to take flying to the masses by making it affordable and convenient, establish an integrated eco- Mr. P. Ashok Gajapathi Raju, Union Minister, Civil Aviation system which will lead to significant growth of & Dr. Mahesh Sharma, MoS (I/c), Culture & Tourism and the civil aviation sector to promote tourism, the then MoS, Civil Aviation releasing the National Civil Aviation Policy 2016. employment and balanced regional growth, enhance regional connectivity through fiscal support and infrastructure development and enhance ease of doing business through deregulation, simplified procedures and e-governance.

he policy is very comprehensive, covering 22 areas • State government will provide police and fire ser- of the Civil Aviation sector. Its salient features are vices free of cost. Power, water and other utilities at Tas follows : concessional rates • Creation of Regional Connectivity fund for VGF Regional Connectivity Scheme • VGF to be shared between MoCA and State • This scheme will come into effect in the second Governments in the ratio of 80:20. For the North quarter of 2016-17 Eastern States, the ratio is 90:10 • Airfare of about Rs. 2500 per passenger for a one-hour flight Route Dispersal Guidelines (RDG) • Revival of airstrips/airports as No-Frills Airports at • Category I to be rationalized based on a transparent an indicative cost of Rs.50 crore to Rs. 100 crore criteria, i.e., flying distance of more than 700km, aver- age seat factor of 70% and above and annual traffic of 5 • Demand driven selection of Airports/airstrips for re- lakh passengers vival in consultation with State Govts and airlines • The percentage of Cat.I traffic to be deployed on Cat. • Viability Gap Funding (VGF) to airline operators II, and IIA will remain the same while for CATIII it will • RCS only in those states which reduce VAT on ATF be 35%. to 1% or less, provide other support services and • Revised categorization to apply from winter schedule 20% of VGF of 2017 • Concessions by Stakeholders • There view of routes will be done by MoCA once ev- ery 5 years • There will be no airport charges • All airlines can now commence international opera- • Reduced Service tax on tickets (on 10% of the taxable tions provided that they deploy 20 aircraft or 20% of value) for 1 year initially total capacity (in term of average number of seats on all • Reduced Excise duty at 2% on ATF picked at RCS departures put together), whichever is higher for do- airports mestic operations

8 KaleidOscope January, 2017 ARTICLE

5/20 Requirement Aviation Security, Immigration and • Replaced with a scheme which provides a level playing customs field • sMoCA will develop ‘service delivery modules’ for • All airlines can now commence international opera- aviation security, Immigration, Customs, quarantine of- tions provided that they deploy 20 aircraft or 20% of total ficers etc in consultations with respective Ministries/ capacity (in term of average number of seats on all de- Departments partures put together), whichever is higher for domestic • Allow Indian carriers to provide security services to operations other domestic airlines subject to approval of BCAS • Encourage use of private security agencies at airports Bilateral Traffic Rights for non- core security functions to be decided in consulta- • GoI will enter into ‘Open Sky’ ASA on a reciprocal ba- tion with MHA sis with SAARC countries and countries located beyond • Such agencies should be registered under the Private 5000 km from Delhi Security Agencies (Regulation) Act, 2005 and will also be separately accredited by BCAS • For countries within 5000 km radius, where the Indian carriers have not utilised 80% of their capacity entitle- • Subject to minimum benchmarks being met, security architecture at the different airports will be proportionate ments but foreign carriers /countries have utilised their to the threat classification and traffic volume. bilateral rights, a method will be recommended by a Committee headed by Cabinet Secretary for the allotment of additional capacity entitlements Helicopters and Charters I • Separate regulations for helicopters will be notified by • Whenever designated carriers of India have utilised DGCA after due stakeholder consultation 80% their capacity entitlements, the same will be renego- tiated in the usual manner. • MoCA to coordinate with Govt agencies and other helicopter operators to facilitate Helicopter Emergency Medical Services Ground Handling Policy • Helicopters will be free to fly from point to point with- • The Ground Handling Policy/Instructions/Regulations out prior ATC clearance in airspace below 5000 feet and will be replaced by a new framework: areas other than controlled or prohibited or restricted • The airport operator will ensure that there will be three airspace Ground Handling Agencies (GHA) including Air India’s • Airport charges for helicopter operations will be suit- subsidiary/JV at all major airports as defined in AERA Act ably rationalized • At non-major airports, the airport operator to decide on • The existing policy of allowing Inclusive tour package charters will be further reviewed to include more catego- the number of ground handling agencies ries of passenger charter flights recognised globally. • All domestic scheduled airline operators including he- licopter operators will be free to carry out self-handling at Maintenance, Repair and Overhaul all airports through their regular employees • MoCA will persuade State Governments to make VAT • Hiring of employees through manpower supplier or zero- rated on MRO activities contract • Provision for adequate land for MRO service providers • Workers will not be permitted for security reasons will be made in all future airport/heliport projects where potential for such MRO services exists Airport PPP/AAI • Airport royalty and additional charges will not be lev- ied on MRO service providers for a period of five years • Encourage development of airports by AAI, State from the date of approval of the policy Governments, the private sector or in PPP mode • Future tariffs at all airports will be calculated on a ‘hy- brid till’ basis, unless specified otherwise in concession Aviation Education and Skill Building Estimated direct additional employment requirement agreements. 30% of non-aeronautical revenue will be of the Civil Aviation Sector by 2025 is about 3.3 lakh. used to cross- subsidise aeronautical charges All training in non licensed category will conform • Increase non-aeronautical revenue by better utilisation to National Skill Qualification Framework stan- of commercial opportunities of city side land dards. MoCA will provide full support to the Aviation Sector Skill Council and other similar organisa- • AAI to be compensated in case a new greenfield airport tions/agencies for imparting skills for the growing is approved in future within a 150 km radius of an exist- aviation industry . ing unsaturated operational AAI airport (not applicable to civil enclaves) Source: PIB Press Release

KaleidoKaleidoscope January, 2017 9 ARTICLE Challenges and Opportunities in the Civil Aviation Sector in India R. N. Choubey, IAS Secretary Ministry of Civil Aviation

ransport is a major driver 5,09,074 seats per week; 5 Indian the third largest aviation mar- of the economy of which carriers are operating in 25 coun- ket. It has an ideal geographic Tcivil aviation is an impor- tries; capacity is also to increase location, a large middle class tant part. Linkage between civil in the next three years with a and a rapidly growing economy. aviation sector and economic huge jump in number of Aircraft However, in a country of 127 mil- activity and its catalytic impact likely to join for scheduled opera- lion, less than 1% Indians fly. The on general development is now tions. As against 395 aircraft for root cause for this is that aviation well recognized. The develop- schedule operations on 1st April, is perceived to cater to the needs ment in the Civil Aviation Sector 2014, orders have been placed for of the ‘elite’. Development of this not only leads to growth of its 374 new aircraft between 2014 sector is both a challenge and an own sub-sectors but also acts as and 2016. opportunity. stimulant to other sectors like Civil Aviation in India is on a high Sustained growth in passenger tourism, hospitaility, manufactur- growth trajectory. Growth in do- traffic, cargo, helicopter opera- ing, skill development etc. As per mestic passenger traffic in India tions etc along with the induction an International Civil Aviation has been around 23% while the of new aircraft and new technol- Organisation (ICAO) study, the world average has been around ogy brings with itself several output multiplier and employ- 5.8% and the closest is China challenges:- ment multiplier are 3.25 and 6.10 at 14% as per IATA’s October • Aircraft and aerodrome safe- respectively. analysis. Cargo traffic has also ty: increased air traffic will lead to During the last one decade the improved with CAGR for Cargo pressure on the safety regulator civil aviation sector has grown being 8.9 during 2014-16. As per which will have to be dealt with at a phenomenal pace and India CAPA investment database, dur- adequate capacity building. has emerged as the 10th larg- ing 2014 - 2016, there has been • Airspace congestion: Increase est civil aviation market in the private investment of Rs. 6625 in passenger traffic, leading to world. Indian aviation currently crore in the aviation sector, with increased aircraft is naturally go- has scheduled air services avail- Rs. 3200 crore in airport, Rs. ing to lead to situation of airspace able to/from 78 airports (only 50 3100 crore in airlines and around congestion if not dealt in time in early 2000); enhanced national Rs. 325 crore in general aviation. with appropriate measures like and international connectivity - In addition, Airports Authority Flexi use of airspace, etc. 76 foreign airlines are operating of India has invested around • Infrastructure constraints: to/from various destinations; bi- Rs. 4000 crore in the development CAPA’s November, 2015 assess- laterals with 114 countries; 2060 of airports. ment indicated that India will re- International flights utilizing India has the potential to become quire almost 50 more airports to

10 KaleidOscope January, 2017 ARTICLE

potential both for domestic and international tourist. The recent initiatives on e-visa have given a push to international tour- ism. India has over 400 airports/ airstrips, some from the World War II era which can be revived and made operational with lim- ited costs and without problems of land acquisition. Demand for express delivery brought about by the boom of E-commerce has positively affected air cargo de- mand. Phenomenal growth in E-commerce will contribute to more demand in air cargo market, considering the fact that signifi- be constructed in next 15 years. report 2016 estimated a shortage cant portion of e-retails are trad- This gets aggravated further giv- of 5000 ATCOs in next 5 year. ed through air cargo. Air cargo, en land and funding constraints. Shortage of manpower raises the particularly domestic has a high • Aviation is a capital intensive cost of operations of airlines/air- employment potential, especial- industry: It is anticipated that ports/MROs etc. on the one hand ly for semi-skilled workers. The in the coming decade approxi- and on the other, has safety im- MRO business of Indian carriers mately Rs. 2 lakh crore will be re- plications as well. It is, therefore, is around Rs. 5000 crore, 90% of quired. Investment in this sector pertinent to address these short- which is currently spent outside in primarily private sector driven ages on priority. India. Given our technology and and the Governement needs to • New technology and new skill base, India can be developed provide the requisite regulatory types of aircraft like Remotely as an MRO hub in Asia, attracting framework. Piloted Aircraft Systems will put business from foreign airlines. Helicopters play a key role in re- • Lack of aircraft leasing com- strain on the safety and security mote area connectivity, intra-city panies in India: In the current architecture. movement, tourism, law enforce- scenario, airlines prefer taking • High charges and high turn- ment, disaster relief, search and aircraft on lease instead of out- around time in cargo has resulted rescue, emergency medical evac- right purchase. However, all leas- in low air cargo volumes in India uation, etc. India currently has ing companies are based overseas as compared to other leading less than 300 civilian helicopters requiring payments in foreign ex- countries. which is very low as compared to change and higher rates. Despite the challenges, there are other developing nations. • High Fuel cost: ATF prices in several opportunities which pres- With a view to harnessing the India have a significant impact on ent themselves before us and are opportunities and to deal appro- the operating costs of airlines. the drivers towards the develop- priately with the challenges fac- • Skilled manpower: There is a ment of this sector. As already ing the sector, Government noti- shortage of trained and skilled mentioned earlier, India has an fied the National Civil Aviation manpower in the aviation sec- advantageous location between Policy 2016. For the first time tor, Moreover, the industry is un- eastern and western hemisphere, since Independence an integrated able to retain talented employees. a large middle class with grow- policy covering all the sub-sectors According to certain estimates, ing disposable income. If every of aviation has been released. The the incremental human resource Indian in middle class income Policy focuses on creating a sus- requirement of the Civil Aviation bracket takes just one flight in tainable long term framework for Sector by 2025 would be in the a year, it would result in a huge the sector. The Government aims region of 3.3 lakhs. CAPA’s ATM jump. India has a huge tourism to boost Indian aviation by way

KaleidoKaleidoscope January, 2017 11 ARTICLE of enhanced regional connectiv- ity, fiscal and monetary stimuli, deregulation free competition, to bring in greater transparency, predictability and ‘ease of doing business’ by way of simplified rules, e-governance; and regular interaction with industry. The National Civil Aviation Policy 2016 proposes to make flying af- fordable through its Regional Connectivity Scheme (RCS), by capping the fare for one hour of flight to Rs. 2500/- on RCS routes. It also includes revival of unused/ tax concessions, simplification of international Air cargo and ex- underused airports and provid- procedures and other incentives press delivery services is a key ing viability gap funding. This through airport operators. Steps objective of the government, giv- step would improve connectivity have also been taken to liberalize en its importance from a ‘Make in to the remote areas of the coun- regime of bilateral rights leading India’, e-Commerce and exports try and help in the development to greater ease of doing business perspective. Steps are proposed of infrastructure and generation and wider choice to passengers. of jobs. to be taken to promote growth The Government will also pro- in air cargo by way of cost re- The Policy also aims to enhance mote helicopter usage by vari- duction, efficiency improvement ease of doing business through ous measures such as separate and better coordination with simplified procedures and e-gov- regulations for regulating their stakeholders. ernance which includes eGCA operations, facilitate Helicopter (fully automated services of The Policy has laid down a frame- Emergency Medical Services DGCA), eBCAS (fully automated work which is expected to ensure (HEMS) by coordination between services of BCAS). Government is growth of this sector and give the keen to develop India as an MRO all stakeholders and DGCA will required impetus so that India hub in Asia, attracting business bring out Regulations for HEMS. achieves the vision of becoming from foreign airlines by providing Promotion of both domestic and a leader in the world of aviation.

12 KaleidOscope January, 2017 ARTICLE Air India... Truly Global

Ashwani Lohani CMD, Air India

ir India is a name synon- from Delhi to New York, Newark, connections to Scandinavian ymous with the history Chicago and San Francisco. Also countries-Sweden, Norway and Aof civil aviation in India. recently this flight made first ever Kingdom of Denmark, Denmark. When Air India came into being journey around the world by tak- Air India also demonstrated its in 1932, it pioneered civil aviation ing pacific route from Delhi to commitment to strengthening in India and carved for itself a spe- SFO and Atlantic route on jour- regional connectivity under its cial place in India’s civil aviation. ney from SFO to Delhi. With this, ‘Connect India’ program by suc- Air India has always been associ- the number of non-stop flights cessfully starting over 12 new ated with India – from standing to the US alone has gone up to 4 connections on the domestic by the nation during any crisis, daily flights – to Chicago, New route. Airline will look to start reflecting the tradition and cul- York, Newark and San Francisco. over a dozen new connections ture of the country or showcasing Catering the strong demand from this year as well in alignment the strength of emerging India. western India, Air India also com- with the government’s ambitious menced its service to the United The national carrier has grown Regional Connectivity Scheme States with the launch of a flight to become a mega international named UDAN. On the domestic from Ahmedabad to Newark via airline with connectivity across circuit, Air India will add new fre- USA, Europe, Australia, Far East London. As part of the expan- quencies on various routes apart and South-East Asia. The interna- sion plans for 2017, Air India from starting new connections to tional network offers several non- plans to add two new interna- bolster regional connectivity. A stop flights. Air India scripted tional destinations, Washington direct flight service to Port Blair history by introducing the first and Copenhagen, the capital of will commence from Delhi in the non-stop flight between Delhi Denmark to its map. Air India is month of May.Air India will also and San Francisco in the US, mak- looking to commence direct flight add second frequency on Delhi- ing it one of the longest flights in operations to Washington from Nagpur-Delhi, fourth frequency the world. The Delhi-SFO route Delhi in July 2017. This flight will was launched last December as be the fifth direct connection with on Delhi-Ahmedabad-Delhi sec- a tri-weekly flight but due to its the US and shall be operated by tor in March 2017 and second fre- high occupancy and demand, it Boeing 777 aircraft. Furthermore, quency on Delhi-Leh-Delhi sector has now been made as a 6 days a the flight to Copenhagen, the in the month of May. week flight to San Francisco. Air capital of Denmark in May 2017 Air India is not merely an air- India already has nonstop flights shall offer convenient onward line that transports passengers,

KaleidoKaleidoscope January, 2017 13 ARTICLE baggage, and cargo. It is a multi- Air India joined the of Spain, with a non-stop flight faceted organization. The avia- prestigious Star Alliance from December 1st, 2016. This tion infrastructure it has created direct flight, operating thrice a over the years is a testimony of its in 2014, the first for an week on Tuesday, Thursday, and contribution. Apart from servic- Indian carrier, bringing Sunday with a B787 Dreamliner, ing of all its aircraft in-house with a host of benefits, such offers connections to a number of its own engineering facilities, Air European destinations. Madrid India also undertakes ground- as seamless transfers, is Air India’s 42nd international handling services of many air- combined frequent flyer destination and 9th European lines in the numerous cities of loyalty points, code destination in 6 countries. India. Air India has grown to sharing, wider choice Currently on the Europe become a mega international air- Network, Air India connects 9 of flights and access to line with a network of 41 desti- European destinations in 7 coun- nations across the USA, Europe, facilities at more than tries which include UK-London Australia, Far-East and South- 1000 lounges worldwide. & Birmingham; Austria- Vienna, East Asia and the Gulf. The air- The alliance network Germany-Frankfurt; France- line’s domestic network covers 69 Paris; Italy- Rome & Milan, Spain- destinations, including far-flung currently offers over Madrid and Russia- Moscow. areas of the North-East, Ladakh, 18,500 daily flights to Andaman and Nicobar Islands. Besides these, Air India oper- The airline today, flies one of the 1312 airports in 190 ates non-stop flights from Delhi youngest, state-of-the-art, fleet of countries. to Sydney, Paris, Melbourne, aircraft comprising a mix of the Milan, London, Birmingham, wide-body Boeing B777s, B747s, Hong Kong, Seoul, Tokyo, Osaka, its latest acquisition- the B787 in Austria and neighboring Shanghai, Frankfurt, Paris, Dreamliner and the narrow body European cities as well as of locals Singapore, Bangkok and Dubai. Airbus A321s, A320s and A319 visiting the Indian sub-continent. Air India joined the prestigious aircraft. The Vienna connection, as- Star Alliance in 2014, the first Air India witnessed a successful sumed significance in view of for an Indian carrier, bringing commencement of four new flight the strong relationship that India a host of benefits, such as seam- operations in the year 2016 to San and Austria have been sharing in less transfers, combined frequent Francisco, Madrid, Vienna and tourism, education, industry, cul- flyer loyalty points, code sharing, Ahmedabad-Newark via London. ture etc. The new service caters to wider choice of flights and ac- Air India launched its direct non- different segments of air travel- cess to facilities at more than 1000 stop flight from Delhi to Austrian ers. The flight promises boost to lounges worldwide. The alliance capital Vienna in April, 2016 with tourism as well as Air India offers network currently offers over a Boeing B787 Dreamliner air- convenient connections from its 18,500 daily flights to 1312 - air craft. The Delhi-Vienna flight of- hub in Delhi to places of interest ports in 190 countries. The wide fers easy connection to over 25 and tourism like the Taj Mahal, seats, extra leg room, maximum destinations in Europe. The non- the backwaters and beaches on baggage allowance, best inflight stop service on the Delhi-Vienna- Kerala and Goa, the majestic and cuisine, frequent flyer program, Delhi sector operates three days memorable sights in Rajasthan, extensive domestic and interna- a week on Wednesdays, Fridays Puri in Orissa and many more tional network coupled with in- and Sundays. Flight AI-153 such destinations. This flight has novative offers and pricing make leaves Delhi at 1405 hrs to arrive generated a lot of enthusiasm in Air India one of the most trusted in Vienna at a convenient time of the Indian Diaspora in Austria. and dependable brands for air 1845 hrs. The return flight leaves Nestled along the banks of river travelers. Vienna at 2245 hrs as AI-154 and Danube, the spectacular natural Air India has some great expan- reach Delhi at 0925 hrs the next splendor sets Vienna apart. sion plans for 2017 and will be as morning. This direct flight met Also, Air India recently connect- aggressive in the market as the a long-standing need of Indians ed Delhi with Madrid, the capital private airlines.

14 KaleidOscope January, 2017 ARTICLE India’s Aviation Industry: Prospects and Challenges

Dr. U. D. Choubey Director General, SCOPE

ndia is one of the fastest The airlines projected a record is one of the most critical seg- growing aviation markets in collective operating profit of Rs ment of the aviation industry Ithe world. The transformation 810 crore (US $ 1.29 billion) in fis- also witnessed a positive growth. has been the most rapid since the cal year 2016 according to Crisil Domestic Cargo Traffic registered sector’s liberalization in 2003. Ltd. Air India reported an op- a growth of 7.6 percent over the India is the ninth largest civil avi- erating profit of Rs 105 crore for period from 2006-07 to 2015-16 ation market in the world, with a the year 2015-16 after several very while the international cargo traf- market size of around US $ 16 bil- difficult years. The airline carried fic grew at 4.7 percent CAGR dur- lion. It aims to become the third 18 million passengers during ing the same period. largest aviation market by 2020 2015-16 registering a growth of Strong GDP growth, a young and the largest by 2030. 6.6 percent over previous year. population and the expansion The Indian Civil Aviation Sector is Almost 60 percent of its revenue of India’s vibrant middle class vital for the overall development comes from International flights. is expected to see India achieve of the Nation. Its importance is The Indian Aviation Industry reg- the fastest growth of its aviation well recognized for facilitating istered a robust growth with pas- market in the world over the next the growth of business, trade senger traffic during FY 2015-16 20 years. Other factors which are and tourism. The air transport increased at a rate of 21.3 percent attributed to the growth are low sector contributes around US $ 72 to 85.57 million from 70.54 mil- cost carriers allowing foreign di- billion to the GDP and provides lion in the FY 2014-15. Indian rect investment, supportive gov- 8 million jobs. As per available domestic air traffic is expected ernment policies and emphasis data, FDI inflows in air transport to cross 100 million passengers on regional connectivity. (including air freight) between by FY 2017,as per Centre for Asia April 2000 and March 2016 stood Pacific Aviation (CAPA). Total Challenges at US $ 931.05 million. passenger numbers handled at Increased integration with global Indian airports were 224 million economy has provided ample of An Overview making it one of the ten largest opportunities to the industry but India has one state owned airline, markets globally. at the same time, Indian Civil Air India (with an international According to DGCA’s Civil Aviation Industry is also plagued subsidiary, Air India Express) Aviation Statistics during 2006- with several challenges. In spite and private airlines groups in- 07 to 2015-16, domestic passen- of the fact that the sector is grow- clude IndiGo, Jet Airways, ger traffic registered a compound ing at a remarkable pace, less SpiceJet, GoAir, Vistara and annual growth rate (CAGR) of than only two percent of the pop- AirAsia India. In addition, Air 10.10 percent while the interna- ulation travelled by Air. The trips Costa, Air Pegasus and Trujet tional passenger traffic grew at per capita in India is 0.04 as com- provide the much needed region- 8.75 percent (CAGR) during the pared to 0.15 (China), 0.25 (Brazil) al connectivity. same period. Air cargo which and more than 2 in US. The cost of

KaleidoKaleidoscope January, 2017 15 ARTICLE

and regulation of Civil Aviation and for devising and imple- menting schemes for the orderly growth and expansion of civil air transport. Its functions also extend to overseeing airport fa- cilities, air traffic services (via Airports Authority of India) and carriage of passengers and goods by air (via the Directorate General of Civil Aviation). Civil Aviation Ministry is ac- tively engaged with industry and all stakeholders to under- stand the needs of the users and service providers and develop solutions thereof. According to travelling is very expensive and of the biggest challenge to the in- IBEF, government agencies proj- should be continually brought dustry and India should enforce ect that around 500 Brownfield down. Low fare would stimulate security regulations in terms and Greenfield airports would be new demand and draw million of globally accepted standards. required by 2020. Public Private of passengers away from the ex- There is also need to deploy state- Partnership models are being tensive rail network to faster and of-the-art aviation technology for encouraged for construction of more comfortable air services. enhanced efficiency and trans- airports, with substantial state High operating cost, congestion parency. Noise reduction, fuel support in terms of financing, at airport, increased competition, efficient engines, digitization for concessional land allotment, tax lack of skilled manpower and customer services and use of IT holidays and other incentives. technology for maintenance op- training infrastructure, regional The new Civil Aviation Policy erations should be the key focus economical and infrastructural cleared by the Union Cabinet in areas. disparities, high fuel taxes etc. are June 2016 is aiming to take flying some of the other concerns which Air India, the only national car- to the masses. The civil aviation need urgent remedial measures. rier of India needs to enhance its ministry has announced a com- market share and regain its lost Human resource constitute the plex regional connectivity policy glory. A positive initiative has backbone of civil aviation. The that seeks to put unconnected been taken by Aviatiion Ministry growth and performance of the towns on the aviation map with to review the performance of sector substantially depends the help of viability gap fund- PSEs under its aegis on a bal- upon availability of skilled per- ing. This will be done by capping anced scorecard methodology. sonnel and trained manpower. Under this, organization’s perfor- fares at about Rs 2500 for those Continuous training should be mance will be monitored against routes and helping airlines with ensured to respond to changing strategic goals on the basis of a some funding to ply on them. environment and the technol- few listed criteria. This move will The funds will be generated by ogy requirements of the industry. surely help improving efficien- charging a cess on other domes- Moreover, there has been remark- cies of PSEs. tic flights. The civil aviation min- able expansion in airport infra- istry is looking to develop some structure, the focus should be The National Civil Aviation airstrips/airports as no-frill air- to develop world class aviation Policy ports at an indicative cost of Rs infrastructure with quality cus- The Ministry of Civil Aviation of 50-100 crore. tomer services. India is responsible for the for- In the Union Budget 2016-17, the In view of the global scenario, se- mulation of national policies and government introduced various curity and safety has become one programmes for development proposals for maintenance, repair

16 KaleidOscope January, 2017 ARTICLE and overhaul operations for air- The new Civil Aviation Greenfield airport projects. planes. These include customs and excise duty exemption for Policy cleared by Road Ahead tools and tool kits used in MRO the Union Cabinet in According to IBEF, India’s avia- works. The government has also tion industry is largely untapped scrapped the one year restriction June 2016 is aiming with huge growth opportunities, for utilization of duty free parts to take flying to the considering that air transport is apart from allowing import of still expensive for majority of the unserviceable parts by MROs for masses. The civil country’s population, of which providing exchange. nearly 40 percent is the upwardly aviation ministry has As per revised norms the foreign mobile middle class. aircraft brought in to India for announced a complex CAPA has projected that capac- MRO work would now be per- ity constraints at India’s metro mitted to stay up to six months regional connectivity airports have already become vis- or as extended by aviation regu- policy that seeks to put ible. The situation at key metros lator Directorate General of Civil such as Mumbai and Chennai is Aviation (DGCA). Such foreign unconnected towns on particularly acute as these air- ports are fast approaching satura- aircraft would also be henceforth the aviation map with permitted to carry passengers in tion. But slot constraints and con- the flights at the start and end of the help of viability gestion are issues at most of the its period of stay in India. The metro airports and are expected new aviation policy includes gap funding. This will to remain so for the near future as proposals such as allowing new be done by capping new terminals and runways will airlines to fly abroad, introduc- take 2-3 years to develo, accord- tion of more regional flights and fares at about Rs 2500 ing to CAPA has said in its latest “India Aviation Outlook 2017-18: a new formula for granting bilat- for those routes and eral flying rights. Surging traffic but infrastructure constraints become critical”. Airports Authority of India plans helping airlines with Indian economy is witnessing to develop city side infrastruc- some funding to ply on ture at 13 regional airports across a tremendous revolution in the India, with help from private them. The funds will be recent years and has become players for building of hotels, car the fifth largest economy of the parking and other facilities and generated by charging a world. The unique initiatives like Make In India, Digital India, thereby boost its non aeronauti- cess on other domestic cal revenues. Skill Building relies its success flights. on its demography and the glo- The Government of India has balized world where free market given site clearance to Delhi forms the crux. Civil aviation Mumbai Industrial Corridor has to play a pivotal role in tran- and Development Corporation near Bhiwadi in Alwar district scending these initiatives for the (DMICDC) for setting up of a of Rajasthan and has granted ‘in growth and competitiveness of Greenfield Airport for public use principle’ approval to 13 other the country.

KaleidoKaleidoscope January, 2017 17 ARTICLE AAI: Creating a world-class airport network in the country

Dr. Guruprasad Mohapatra, IAS Chairman, AAI

he transport sector plays and comfort of the travelling pub- To meet this rapidly rising de- an important role in the lic, generating direct and indirect mand, AAI has drawn up an am- Tgrowth and development employment and thus contribut- bitious infrastructure develop- of the country. Aviation sector en- ing towards the overall economic ment plan that involves a capital joys a unique position,being the development of the country. expenditure (CAPEX) of 17,500 fastest mode of travel and having Looking at the figures,the year crores for the next five years. no physical barriers in terms of 2015-16 saw a record 223.61 mil- New Terminal Buildings have operations. lion passengers passing through been planned at Agartala, Air traffic over the years has seen Indian airports, registering a Guwahati, Vijayawada, Leh, a sustained growth in India. In 17.6% growth compared to pre- Gorakhpur, Patna, Bihta, Trichy terms of passenger traffic, India vious year. The upturn was fu- and Imphal to directly augment is currently the ninth largest eled by a 21.2% rise in domestic passenger capacity of these air- aviation market in the world. It throughput, which increased to ports. Prime Minister has an- is expected that by 2020, Indian 168.89 million passengers, and a nounced a special package of Aviation market will be third in healthy 7.7% rise in internation- Rs.2700 Crores for Bihar in 2015 global ranking in terms of size al traffic, which hit an all-time for development of airports in of the Industry, next only to USA high of 54.72 million passengers. Patna (New), Gaya, Raxaul and and China. Cargo volumes were also impres- Purnea. Plans are there to in- Being part of the Aviation sector, sive with a total of 2.7 million crease the capacity of existing Airports Authority of India (AAI) tons of freight passing through Terminal Buildings by expan- owns and manages more than 125 India’s airports in FY2015-16, just sion at Chennai, Srinagar, Pune, airports across the country, which over one million tons on domestic Lucknow, Mangalore, Dehradun include 21 International Airports, services (+6.4%) and 1.65 million and Jaipur. Work is in progress 81 Domestic Airports and 26 Civil (+7.5%) on international flights. in Jammu and Kishangarh and Enclaves at Military airfields. We The future looks bright, as our the works are likely to be com- have been responsible for devel- forecasts show that both domes- pleted this year. Another 7 airport oping the nation’s gateways from tic and international passenger terminals are under construction the inception and are committed numbers are expected to grow by at Belgaum, Hubli, Vijayawada, to create a world-class airport an average of 9.2% and 7.5% per Tezu, Calicut, Jharsuguda, Port network in the country with clear annum respectively over the next Blair and Gorakhpur and are objectives of promoting air traffic, five years and exceed 471.8 mil- likely to be commissioned in the improving direct connectivity be- lion passengers and 4.6 million next two years. tween cities for the convenience tons of cargo annually by 2025/26. New Civil Enclaves are planned

18 KaleidOscope January, 2017 ARTICLE at five Defence airports where civ- il enclave already exists viz. Agra, Allahabad, Kanpur, Bagdogra and Jammu and to provide civil air connectivity, three new civil enclave will be established at Bareilly, Adampur and Purnea. Besides this, AAI is also looking up at various other opportuni- ties for either Greenfield airports or expansion of existing airports across the country.AAI is con- structing a Greenfield airport in Pakyong (Sikkim) which is ex- pected to be operationalized by September, 2017. AAI is in vari- ous stages of consultation with AAI visualizes many challenges of state-of-the-art technolo- state governments to develop to make the Scheme successful. gies. We have already commis- new Greenfield airports at Shirdi, Currently around 75 out of 450 sioned state of the art Global Deoghar and Kushinagar using airstrips/airports (owned by AAI, Navigation Satellite System in the JVC model. AAI also plans Defence, State Government, pri- form of GAGAN (GPS Aided Geo building and operating another vate operators and other agen- Augmented Navigation). With Greenfield airport at Itanagar cies) have scheduled operations. this India became only the fourth subject to acquisition of land. Revival of the air strips and air- country in the world to commis- Further, Govt. of India as per the ports will be “demand driven”, sion a regional satellite based laid down policy for Greenfield depending on firm demand augmentation system. As per airports have approved about 15 from airline operators. Unserved plan all new aircraft registered in Greenfield airports which may Airports will be operationalised India have to be GAGAN com- come up in near future. at an indicative cost of Rs.50 pliant from 2019. GAGAN will provide increased operational Apart from the above AAI is crores to Rs. 100 crores. Further, efficiency, reduced fuel burn and working on revival of unserved 51 airports which are ready for enhanced capacity. and under-served airports to fa- operation with no expenditure cilitate the Regional connectivity or expenditure upto around Rs. 5 Another important system, which scheme launched by the Central crore, have been identified. Other has been installed and will be op- Government. The Ministry of airports may be operationalized erationalized soon, is the central- Civil Aviation launched the by making expenditure upto ized Air Traffic Flow Management Regional Connectivity Scheme– Rs.100 crore. GOI has planned with networked VHF and Radars UDAN (Ude Deshka Aam to develop 50 unserved airports capable of providing dynamic Nagrik) in October 2016. The op- with expenditure of Rs.4650 crore sectors, which permits alignment eration of the Scheme is through a to create infrastructure in three with traffic pattern and provide market mechanism, where opera- years. AAI is gearing up to meet demand/ Capacity balancing both tors will assess demand on routes, these challenges for success of the in air and on ground. AAI further submit proposals for operating/ Scheme. plans to undertake installation of providing connectivity, seek On the ANS front,a master plan is new radars and surveillance tech- VGF, if any, while committing to in place to enhance capacity and nologies like ADS-C, ADS-B and certain minimum operating con- safety levels in the face of higher A-SMGCS, the latter used for the ditions. The Airports Authority of air traffic movements in future. identification of aircraft on the India (AAI) has been designated The ANS infrastructure is focus- ground at airports. as Implementing Agency under ing on greater integration and AAI is in the process to lever- the Scheme. automation with implementation age its cargo business to increase

Kaleidoscope January, 2017 19 ARTICLE the Non-Aeronautical revenue New Terminal Buildings instances of diversion that lead to avoidable fuel burn. and has chalked out a road have been planned at map by identifying 24 Airports Airports Authority of India is across the country for creation Agartala, Guwahati, looking forward towards collab- of Common User Domestic Air Vijayawada, Leh, orative effort from all stakehold- Cargo Terminals (CUDCT). The Gorakhpur, Patna, ers at airports to accelerate the terminals will be capable of ac- transition from today’s operating commodating cargo from all over Bihta, Trichy and Imphal environment to more advanced, the country including perishable to directly augment efficient and environmental goods, medicines and other high friendly concepts with an aim to passenger capacity of value and express delivery ship- reduce fuel burn and greenhouse ments. To give special focus to these airports. Prime gas emissions – reducing avia- cargo, AAI has formed a 100% tion’s impact on the environment. owned subsidiary of AAI, AAI Minister has announced Cargo Logistics & Allied Services a special package of To conclude, Aviation as a sector is growing by leaps and bounds Company Ltd (AAICLAS). The Rs.2700 Crores for Bihar subsidiary company came into and AAI is at the forefront to facili- existence in August, 2016 and will in 2015 for development tate this growth.The Government is making all efforts to provide an henceforth undertake all cargo of airports in Patna and ground handling related ac- enabling environment with the tivities at AAI managed airports. (New), Gaya, Raxaul and help and cooperation of all stake- The Company will focus on Air Purnea. Plans are there holders for sustaining growth and placing India in the ranks of Cargo handling and allied ser- to increase the capacity vices, Warehousing and Contract global leaders in the civil aviation logistics & Air Cargo Road feed- of existing Terminal sector. The growth opportunities er and Air Freight Stations. The Buildings by expansion will continue to boost creation of AAICLAS formation has given infrastructure, thereby providing an impetus to the Air Cargo at Chennai, Srinagar, huge investment opportunities Developmental activities at AAI Pune, Lucknow, and generation of employment without compromising comfort, Airports with a fresh outlook and Mangalore, Dehradun focused attention. safety, security and affordabil- and Jaipur. ity of air transport. The Govt. AAI is further working on Green is keeping a close watch on sustainable airports. Airports un- the financial health of the der construction/up gradation are lighting systems being installed industry and is framing policies planned on Green Building Codes are based on LED to conserve en- conducive to the sustainability that are more energy efficient, use ergy. The trees are being planted natural and renewable energy to around the new airports to make of the sector. As per rough esti- have very less carbon footprints. the environment green and facili- mates drawn by the Government, Solar power shall be used in a tate absorption of CO2. AAI has total investment of Rs. 3,77,275 big way for all type of lighting adopted sustainable develop- crores has been estimated for air- including the interiors of airport ment through Green initiatives in port infrastructure development terminal buildings. Several solar ANS like establishment of Central work by 2031-32. This investment power plants have been opera- Air Traffic Flow Management would result in creation of ad- tionalised. 6.8 MW capacity roof CATFM, Implementation of ditional passenger capacity of top solar power plants and 19.8 RNAV – ATS routes in enroute 1086 MPPA, out of which 211 MW ground mounted solar pow- phase, Implementation of ap- MPPA will come up in Greenfield er plants are in progress. There proach procedures with GNSS airports alone. This additional are plans for replacement of all such as Baro- V, GAGAN based capacity will help in catering to internal and external lightings at LPV procedures to provide bet- the forecasted passenger traffic of 15 airports with LED lights in this ter all-weather access to air- 1144 MPPA by 2031-32 in a seam- financial year. In addition airfield ports, thereby bringing down the less and safe manner.

20 KaleidOscope January, 2017 ARTICLE

Pawan Hans: One of South Asia’s largest helicopters CPSE of GOI maintains its growth story with renewed focus on Safety Dr. B. P. Sharma and Customer Satisfaction. CMD, Pawan Hans Ltd.

ndia’s civil aviation market world population of about 38,000 strategic areas besides develop- is among the fastest grow- helicopters. ment of helipads/heliports in- Iing in the world and Ministry An organization with commit- frastructure to boost helicopter of Civil Aviation “New Civil ment of service with renewed industry. Aviation Policy-2016” with fo- focus on safety and customers cus on Regional Connectivity satisfaction, Pawan Hans Ltd Transition to will provide new impetus to the (PHL) continues to be India’s Transformation aviation industry. Indian helicop- largest helicopter company and In view of the emerging mar- ter industry anticipates a faster a profit making-dividend pay- ket and its challenges, Pawan growth in coming years after a ing CPSE of government of India. Hans has developed a Corporate long spell of sluggish growth. The company provides helicop- Strategic Plan: Vision–2020 to The formation of the Pawan Hans ter services to various sectors leverage the growth potential Limited in 1986 provided the such as E&P Offshore, Remote- of organization business, im- first boost to the civil helicopter Air-connectivity in North East, proved productivity, skill de- industry in India, which now Andaman Nicobar, Lakshadweep velopment and Infrastructure holds and operates the largest islands, Heli Tourism, air-surveil- development of Heliports un- fleet in the country with a vision lance, security, emergency and der Heli-Hubs concept. In view “To become a market leader in disaster management services in to improve the governance and Helicopters and Sea Plane ser- vices, to provide regional connec- tivity through small fixed Wing Aircrafts operations and provide MRO services with international standards”. Presently, Helicopter usages in India are very limited in comparison to developed na- tions and have a huge potential. It is estimated that helicopter population in India shall grow to more than 800 helicopters by 2030 from its present strength of 280 helicopters. However, these numbers still seems woefully inadequate in country of 1.2 bn people when compared with the

KaleidoKaleidoscope January, 2017 21 ARTICLE

Heliport, Rohini, Delhi. Building Infrastructure Development and professional management of infrastructure such as helipads, heliports, city air-corridors and MRO facility are key essentials to support the growth of helicopter industry. Pawan Hans plans to establish four heliports on concept of Heli- Hubs by the year 2020 to meet the requirement of anticipated growth of helicopter industry. Accordingly, an internal ‘Action Plan’ process has been initiated in line with the company’s over- all business plan of infrastruc- accountability, company has re- ture development. PHL has con- structured its Board during 2016 structed Nation’s first heliport at to include two functional Board Rohini, New Delhi on Heli-Hub Presently, PHL has a Directors and two Independent concept at cost of Rs 97.27 crores Directors. The general aviation fleet of 43 helicopters to serve the requirement of north- and helicopter industry has huge ern part and proposes to develop potential in area of tourism, law comprising SA-365N three more heli-hubs on the simi- & order, disaster management, lar concept of one-point solution, emergency medical services, Dauphin, Dauphin one each Eastern Region, Western intra-state/inter-city/remote con- AS365N3, Bell 206, Bell Region and Southern Region nectivity besides MRO business for supporting development of under Make in India initiatives of 407, AS 350 B3, MI-172 sustainable growth of helicop- Government of India. ter industry with MRO facilities and 3 Dhruv helicopters Presently, PHL has a fleet of 43 and skill development at these heli-hubs. helicopters comprising SA-365N for Operation and Dauphin, Dauphin AS365N3, Bell 206, Bell 407, AS 350 B3, MI- Maintenance with BSF MRO 172 and 3 Dhruv helicopters for MRO Industry is an integral part Operation and Maintenance with and State Police. PHL of the Civil Aviation Industry and development of this segment has BSF and State Police. PHL has has prepared long term prepared long term Business Plan multiplier effect on the economy -2027 and envisage becoming a Business Plan -2027 and and also will provide employ- 100 Helicopter company by 2025 ment opportunities for the youth to achieve its targeted planned envisage becoming a of India. With fast growing of growth of 300% in its present aviation industry and improv- 100 Helicopter company business. Pawan Hans is diversi- ing of the economy, industry ex- fying its business to become the by 2025 to achieve perts have forecasted substantial market leader and to explore the growth of MRO sector business. possibility of expanding its op- its targeted planned Global MRO revenue is cur- erations in the Tier-II and Tier-III rently around US$61 billion and cities by introducing fixed wing growth of 300% in its is expected to grow to US$81 operation and seaplane connec- present business. billion by 2023. Based on the ac- tivity, MRO business, under the tual amount spent on outsourced “Make in India” initiative. MRO work, India’s annual MRO

22 KaleidOscope January, 2017 ARTICLE

but also helps formulate new standards of safety in tune with global standards. The Pawan Hans Training Institute (PHTI) Training Institute approved by Directorate General of Civil Aviation, Govt. of India, for imparting training in the field of Aircraft Maintenance Engineering. The institute is poised to provide dual degree course in affiliation with Mumbai University from session 2017. A cadet helicopter training pro- gram is also under unveiling in association with HAL Rotary Academy. segment is currently estimated to Pilots, Aircraft Engineers and be at US$ 700 to $800 million (Rs. Technicians. Further, with the Safety as a Culture 4,200 Crores). However out of the demand for skilled HR on one PHL has been providing services in some of very difficult areas $ 800 million business, hardly $ 60 hand and prevailing challenges of flying such as offshore, Hilly million is being done in India (less in incubating various training Terrains, North East states and than 10%), remaining is going out infrastructure on the other hand, of the country. Pawan hans, the PHL has formulated strate- insurgency affected areas. Service country’s largest Helicopter car- gies for skill development that with Safety above all and Zero rier, also has the `biggest’ MRO have a healthy mix of Technical, Tolerance to Safety are the new set up at Juhu, Mumbai. PHL has Commercial and soft skill to ad- guiding principle of the compa- plans to expand its maintenance dress skill development com- ny. In over last three decades of and repair capacity by develop- prehensively across all its seg- operation, PHL has logged more ing two state-of-art MRO facili- ments and at all levels (from high than one million flight hours and ties at Delhi & Mumbai. Pawan end skills to entry level skills) to more than 25 Lakhs landings. Hans has recently signed MoU ensure there is adequate avail- Since then, PHL has developed with Hindustan Aeronautics Ltd. ability of quality human re- and refined safety programs and to provide its technical expertise source across the skill pyramid. practices which have given us an in maintenance and repair of he- PHL has set up two National unprecedented safety record in licopters for Defence Sector at Institutes under PHL Aviation the commercial helicopter indus- Rohini Heliport. Academy one as PHTI for try. In recognition of our safety Training and Development of accomplishments, PHL has re- Skill Development Aircraft Engineers and second ceived the Helicopter Association PHL has formulated a road as NIASS for developing pilots International Operator Safety map for skill development af- and Safety systems. The National Award in 2014. PHL recog- ter conductING a compre- Institute of Aviation Safety & nizes Safety a core value of its hensive skill gap analysis in- Services, which not only lays Flight Operations and has now ternally to meet emergent the basis for aviation safety tie-up with some of world best future anticipated demand for through cutting-edge flying foreign safety institutions for Skilled Human Resource in skill training, HRD, R&D and con- continuous up gradations of its Helicopter Industry particularly tinuing education programmes, safety standards.

KaleidoKaleidoscope January, 2017 23 ARTICLE National Civil Aviation Policy 2016: A Growth Initiative for Aviation Sector

K. Shyam Sundar CEO, Air India Express

he Indian Civil Aviation FY 16, not withstanding net losses air market has been so rapid over sector has been growing at reported for the year by a few of the past few years that it is glob- Tremarkable rates over the the carriers. ally acknowledged as the fastest past two years. Two consecutive The year also marked the turn- growing one at this time. Many years of 20+ per cent growth rate around of Air India Express into factors have contributed to the has seen the domestic air traffic a profitable airline as it turned in phenomenal growth experienced race from about 60.7 Million in net profits for the very first time in the industry notably on the do- FY 14 to about 85.2 Million in FY since its inception more than ten mestic sectors. The more signifi- 16. In the current fiscal, this traffic years ago. Air India Express is the cant drivers have been: high and has already gone past 67 Million low-cost subsidiary of Air India, consistent growth in GDP fuelled in just the first eight months and primarily engaged in oper- by favorable investment / trade and well poised to cross the ating direct international flights policies; growing middle class 100 Million mark by March 17. from tier 2 / 3 cities in India to and disposable incomes; increase During this time, International the destinations in the Gulf. The in seat capacities and affordable traffic to and from India has also Cochin-based Airline that had fares offered on various routes been growing albeit at a more achieved operating profits in the triggered by low ATF prices and modest rate of about 8% to reach previous two fiscals, earned net Government initiatives such as the figure of nearly 50 Million in profit of Rs. 362 Cr. in FY 16, even the visa on arrival and on-line FY 16. as the parent airline, Air India visa facility for encouraging for- On the strength of robust de- recorded operating profit for the eign tourist arrivals into India. mand and low fuel rates, the first time post the merger of the The orders that have been an- Indian airline industry managed two erstwhile entities - Air India nounced by some of the private to record aggregate net profit in and Indian Airlines. Indian carriers, for acquiring the region of about Rs 850 Cr. in The growth in traffic in the Indian many more aircraft, the capacity

24 KaleidOscope January, 2017 ARTICLE growth planned by Air India and The availability of This is yet another initiative that its subsidiaries in the short to has the potential to deliver high trained manpower medium term and the inexorable growth in passenger numbers as move towards greater liberaliza- especially Captains in the reviewed guideline is bound tion of market access being wit- adequate numbers to be to lead to greater penetration of nessed in the aviation sector the hitherto un-served / under-served world over should collectively able to effectively utilize markets.Ironically enough many ensure that India fulfills the po- the capacity additions of the routes on which Indian tential to become the third larg- carriers were shy to deploy their planned by the various est air market in the world well capacities of their own volition within a decade. In fact, in the carriers is also a matter (and did so only in order to ful- well-consulted, comprehensive of grave concern. While fill the route dispersal guidelines) and first of its kind National Civil are currently served by multiple Aviation Policy this potential the measures proposed carriers each operating multiple has been quite succinctly illus- by the Government flights per day. Obviously, the trated by simply drawing refer- commercial prospects of some ence to the fact that all it would in the National Civil of these routes had clearly been take to propel the country’s air- Aviation Policy are under estimated by the airlines. market size well past all others’ laudable, the pay-off Future reviews of the route dis- save those of the US and China persal guidelines may well be is for each of 350+ million Indian cannot be expected in expected to throw up more such middle class to purchase a single the short term when city pair links that are un-fancied one-way ticket in a whole year. at this time. The Policy document however over 100 – 150 planes The Policy also proposes mea- goes on to judiciously observe are expected to be sures to address the need to in- that this could happen if air con- crease the availability of trained nectivity spreads beyond the cur- inducted. Fuel rates have manpower through setting up set rent confines to smaller cities and been consistently low towns and airfares are atafford- up training institutions to ensure able levels. over the past 2 years or adequate skilled manpower such so. It cannot be expected as trained pilots, engineers, tech- So how far is India really from be- nicians, etc. to facilitate the fleet coming the third largest air mar- to remain at the same expansion plans of the Indian ket in the world? I dare say that carriers. we have got that much closer to levels for long. that goal with the declaration of Of particular interest to AIESL, the truly remarkable and compre- Air India’s subsidiary engaged in hensive National Civil Aviation the MRO business would be the Policy document. The much- simple and transparent process recognition by the Government awaited Policy document was with the proactive participation of of the MRO business for the po- essential for the stakeholders to the concerned State Government tential money-spinner that it is draw up firm plans about future / Airport Operator would be ulti- and the provisions incorporat- investments in the sector with a mately be the key to the success- ed in the Policy to support this measure of confidence. ful implementation of the scheme business. These should add to AIESL’s first mover advantage in Of the many commendable initia- that will serve to transform lo- what is estimated currently to be tives incorporated in the Policy cal economies and open up new a Rs.10000 Crore industry exclud- document, millions of Indians source markets for Airlines on residing in tier two / three cities their overall route networks. ing turnover that might accrue would perhaps most eagerly look The Policy also takes a fresh look from servicing planes owned by forward to the implementation at the terms of the route dispersal other Indian carriers. of the Policy relating to increas- guidelines to bring them in line Like in any other industry, prof- ingregional air connectivity. A with current context / realities. itability in the airline industry is

Kaleidoscope January, 2017 25 ARTICLE determined by the extent to which name two. There is also an acute in the market. The low-cost car- the major assets are utilized. As slot constraint at the existing riers account for over 70% of the such, so long as the marginal rev- International at Dubai, which has domestic market bearing ample enue gained from increased ca- in recent years become a much testimony to the fact that it has pacity is higher than the marginal sought after tourist destination been low fare segment that has in cost of producing that capacity, amongst Indians forging ahead fact grown. airlines would aim to increase the of others within more or less the Whenever an industry turns prof- utilization of the aircraft at their same flight range from India. Slot itable, it is but natural that the disposal, after providing for ad- constraints although not quite so persons employed in the industry equate ground time to do mainte- pronounced are also experienced look for improvements in their nance and inspections. at some of the major airports in compensations. Accordingly,over One of the major external con- the Gulf region. the past year or so, there has al- straints thwarting the goal of The availability of trained man- ready been an industry-wide in- airlines to increase aircraft uti- power especially Captains in crease in the salaries and allow- lization has been constraints in adequate numbers to be able to ances of the licensed categories of the availability of viable slots effectively utilize the capacity ad- employees. The high probability at some of the majorairports in ditions planned by the various of the shortage of licensed man- India and within Asia. Growth carriers is also a matter of grave power becoming even more acute in the number of aircraft move- concern. While the measures pro- in the future with the induction of ments at the Mumbai airport posed by the Government in the many more aircraft in the airlines’ has been severely restricted due National Civil Aviation Policy are fleets is bound to increase such to slot constraints. The runway laudable, the pay-off cannot be cost pressures. capacity at the Airport seems to expected in the short term when A constant concern of the Indian be fully saturated now and the over 100 – 150 planes are expect- carriers has been and continues to only way traffic growth could be ed to be inducted. be the high cost burdens imposed achieved at the Airport might be Fuel rates have been consistently on them by the airports. Airports through replacement of smaller low over the past 2 years or so. need to recognize that a healthy sized planes with larger ones. In It cannot be expected to remain airline industry is the key to fact Air India has taken the lead at the same levels for long. As their survival as well. So much to substitute its A 320 aircraft op- ATF is one of the major items of has already been written about erations on the Mumbai – Delhi direct cost incurred by the air- high tax structure in which the route with Jumbos (B 747 – 400 lines, an upward increase would Indian carriers operate that there aircraft having seating capacity of force airlines to increase air fares is hardly any need to dwell on 423 seats in three classes). Other which would in turn lead to them except to state that these airlines with wide body aircraft cut-backs in leisure and discre- would continue to pose severe on their fleet may be expected to tionary travels – a segment that challenge to the growth prospects follow in Air India’s path if only has grown considerably in the of the industry. to protect their market shares. low fares environment. This It has been notoriously observed The slot constraint for increas- could set off a cyclical reaction on of the airline industry that it ing capacity out of Mumbai looks revenues, profits and ultimate- might be the fastest route a bil- like it would be a long drawn one ly the capacity addition plans lionaire can take to become a as the new airport planned to be of airlines. It is relevant to ob- millionaire. There have been developed at Navi Mumbai could serve that almost all the growth several Indian airline failures take more several years. There is a in Indian domestic traffic has over the past decade for anyone similar situation brewing in some accrued to the low cost carriers to view the industry’s future of the other major Indian airports and mainly attributable to the with anything more than optimis- as well, Chennai and Kolkata to low fares that have been offered tic caution. ARTICLE Small Regional Airports - The next Growth Engine

Air Marshal V. K. Verma Director Indira Gandhi Rashtriya Uran Academy

Need to Develop Regional growth patterns. Historically, the need to be operative just for a Connectivity large cities also referred to as Tier few hours every day, can manage The ‘Open Skies’ policy of I and Tier II cities, have led in with smaller runway length ad- the Ministry of Civil Aviation growth and then plateau out in equate for smaller sized regional (MoCA) and the introduction of due course. The focus then shifts and commuter aircraft. The mid- Low Cost Carriers in the middle to middle tier cities and finally dle tier airports can be manned of the last decade, injected un- to regions in the interior and to by a handful of specialists and precedented vitality into the remote areas. These are referred yet provide professional service. Indian civil aviation industry to to as Tier III and Tier IV cities or In this day and age of perpetual such a degree that passenger traf- towns. The civil aviation indus- terrorist threat, adequate secu- fic climbed at a pace such that it try in India is now poised for a rity would also be an inescapable outstripped the growth rate in breakthrough into the second requirement. capacity development. This also phase where it must develop air- led to the phenomenal rise of op- ports in the middle tier cities and Facilities and Operations timism and coupled with the en- remote locations substantially ex- at Smaller Airports try of private players in airport pand regional connectivity. The smaller regional airports development who are credited would be required to support op- with the building of modern in- Lessons from Large erations only by day with a maxi- ternational and domestic airports Airports mum of ten arrivals and depar- in the country, the civil aviation It would be a gross mistake to tures per day involving about 100 industry appeared to be in the adopt the model used for airports passengers. This can be managed vanguard as an agent of change in the Tier I and Tier II cities. The with a maximum of an eight-hour and a growth engine of the na- model for middle tier airports single-shift watch. Such airports tional economy. However, for must be focused on functional- can make do with a single run- various reasons, the impressive ity and minimum cost. As the way of about 4000 to 6000 ft but pace of growth remained limited volume of passenger traffic and will need a proper security fenc- to a few select metros. As real- air cargo at middle tier airports ing all around. It would have an ity sank in, the complex financial would be much lower than at the Air Traffic Control (ATC) with web of the civil aviation industry large cities, these airports must basic radio communication and began to retard the growth mo- reflect the “hatchback philosophy fire fighting facilities. As only day mentum. Soon it dawned on all of the auto industry” which is to time operations are envisaged the stakeholders that the aviation have the right fit for all the con- at these airports, sophisticated sector only mirrors the industrial cerns. Middle tier airports would navigational aids or permanently

Kaleidoscope January, 2017 27 ARTICLE installed night landing facilities It would be a gross who would have access to weap- are not regarded as essential. The ons stored at different locations airport would have the facilities to mistake to adopt the in the CST, would have respond- operate in a networked environ- model used for airports ed instantly and aggressively to ment and the security arrange- neutralize the terrorist instead of ments would have to be technol- in the Tier I and Tier II waiting for the arrival of security ogy reliant with support of CCTV forces from outside. Thus the ex- cameras, vehicles, weapons and cities. The model for Air Warriors would have helped well trained personnel. To keep middle tier airports save lives instead of helplessly the management slim, airfield falling victim to a just a single maintenance as well as the fuel must be focused on terrorist. farms would be outsourced. functionality and A word in clarification here – the Air Warriors essentially are pro- Support from the Indian minimum cost. As the fessionals with the added ability Air Force (IAF) of armed combat – not to be mis- The IAF traditionally depended volume of passenger taken for commandoes whose on the Indian Army for the se- sole expertise is armed/unarmed curity of its operational airbases. traffic and air cargo combat. The level of expertise in Even though IAF airfields are at middle tier airports combat of an Air Warrior is obvi- generally located at some dis- ously lower than that of a com- tance from the borders, the grow- would be much lower mando – yet way above a non- ing threat of terrorist attacks combatant civilian employee made it necessary for the IAF to than at the large cities, at an airport. The Air Warrior rethink its strategy of securing these airports must is weapon-friendly, willing to its airfields. Thus was born the take risks and capable of offering concept of “Akash Yodha” or “Air reflect the “hatchback stout defence agaist an attack. In Warrior”. In this concept every philosophy of the auto today’s terrorist-infested world, individual donning the IAF uni- these qualities ought to make an form is taught handling of weap- industry” which is to Air Warrior the obvious choice ons, operating communication for the sake of airport security. equipment, field craft, armed and have the right fit for all unarmed combat, first aid and all the concerns. issues related to airfield security. HR Model for Small Thus, the Air Warrior in fact pos- Airports sesses multiple skills. Apart from Personnel serving in the IAF re- his basic expertise which the Air tire from the service at an early Warrior employs on a daily basis, age varying from 35 to 50 years be it as an aircraft technician, an aircraft operating environment and are available for a second ca- automobile mechanic, an engi- and airfield security. reer. A suggested model for man- neer, a vehicle driver, a pilot, an Recall the scenario at the ning by ex-Air Warriors, a small ATC controller, a radio opera- Chhatrapati Shivaji Terminus airport with limited operations is tor, a clerk or a cook, he also is (CST), Mumbai on November 26, given below. a trained combatant capable of 2008 wherein terrorist Kasab sin- • Airport Director: This incum- defending an airfield against ter- gle handedly held at gun point a bent could be from the Flying large number of railway employ- rorists or other inimical elements Branch, Administration ATC or ees as well as passengers waiting that pose a threat to its security. Fighter Controller. Thus an Air Warrior, technical or to board trains. If there had been otherwise, after retirement from ex-Air Warriors employed with • Air Traffic Controllers - the IAF, not only provides pro- the railways deployed at CST, Two: These must be from the fessional expertise, he is also the scenario would have been en- Administration ATC Branch well versed in aviation activities, tirely different. The Air Warriors • Air Field Safety Operators

28 KaleidOscope January, 2017 ARTICLE

(AFSO) – Two. at any airport owned privately, Conclusion • Radio Technicians – Two: To by the state government or the In the modern day era, the threat handle communications. Airports Authority of India (AAI). from terrorism requires that air- The resultant professional output • Fire Fighting Crew – Six: ports ensure complete and fool- These would include drivers. and low costs obtained would proof security of the establish- convince the operator and the ment and more importantly for • Security & Baggage Handling regulator of its workability. Civil the transiting passengers, crew – Six: From amongst ex-IAF Aviation Regulations promul- Police or clerical cadre. and cargo. gated by the Directorate General • Administration/Accounts staff The method adopted to achieve of Civil Aviation(DGCA) on the – One. this at the large and metro air- subject of security would howev- ports is far too expensive to be The 20 personnel listed above er, need to be suitably modified. replicated at smaller airports. would not only execute all neces- The best way forward is for the Hatchback philosophy of the auto sary functions of airport manage- AAI, the state governments and industry must be the model for ment but also provide the appro- the IAF to work jointly on this scaling the size and operations. A priate security environment. Not manning concept as it would be a solution with the minimum level all of them however need to be win-win situation for all. Private of manning lies in hiring ex-IAF ex-IAF. Sector operators such as Reliance personnel for these airports as who have built Greenfield air- they would provide a combina- Implementation of the ports could also source the re- tion of professional expertise and Concept quired personnel from the IAF security.This would pave the way The suggested manning and op- and adopt this model. for small regional airports to be- erational model could be tested come the next growth engine.

Kaleidoscope January, 2017 29 ARTICLE Indian Aviation Sector – Headed for glory but roadblocks remain

Amber Dubey*

The fastest growing Airport infrastructure currently in different stages aviation market needs massive uplift of bidding and construction. India is the 9th largest civil avia- India has over 400 airports and The most anticipated amongst tion market in the world and the airstrips in various states of use. them being is the Navi Mumbai fastest growing. The key drivers 125 airports are under the juris- International Airport (NMIA). of the high growth being wit- diction of Airports Authority of With traffic at the space-chal- nessed are low global oil prices, India (AAI). In its effort to mod- lenged Mumbai airport getting growing economy, increase in ernise and increase operational congested, NMIA is expected to personal disposable incomes, in- efficiency, the Government of provide much needed relief and creased propensity to travel and India adopted a Public Private growth opportunities. a strong policy support by the Partnership (PPP) model for in- The first purely commercial - air government. ternational airports in New Delhi, port of Goa is being planned at Mopa. The current one at The growth is manifesting itself Mumbai, Hyderabad, Bangalore, Dabolim is a naval one and hence in modern airports, rise of low- Nagpur and Cochin. constrained in terms of time and cost carriers (LCC), growing em- As part of the 12th Five Year Plan, space. The Mopa bid has been won phasis on regional connectivity, MoCA plans to invest more than by GMR Group. Construction increased use of Information and USD 10 billion to improve its of the new international termi- Communication Technologies aviation infrastructure, namely nal at Cochin airport has been (ICT) and increased foreign in- the airports. This amount may completed and is expected to be vestments in airports, airlines be inadequate given the unprec- operationalised by mid-2017. and other allied sub-sectors. edented growth being witnessed New airports at Kannur (Kerala) in India. It pales in comparison With growth comes challenges – and Bhogapuram (Andhra Pra- to the USD 130 billion earmarked of congestion, equitable growth, desh) are under various stag- skill shortages, safety and secu- by the Chinese government es of development. KPMG is rity. How Indian aviation ad- and USD 46 billion by the UAE the transaction adviser to the dresses these challenges will de- government for their aviation respective state governments cide whether India will hit the big infrastructure. for Navi Mumbai, Mopa and league or not. Several greenfield airports are Bhogapuram airports.

*Amber Dubey is Partner and India Head of aerospace and defence at global consultancy KPMG. He was assisted by Ujwal Deole, Manager (Aerospace & Defence) at KPMG in India. Views are personal.

30 KaleidOscope January, 2017 ARTICLE

Regulatory challenges in airport In the last 13 years, supportive role in the turnaround. tariffs has hurt investor senti- India has witnessed • Profitability of Jet Airways: ment and have prevented large The return of Jet Airways into investors both global and Indian significant growth in profitability in 2015/16 after four from investing in Indian airports. the number of national consecutive years of registering National Civil Aviation Policy losses is a positive development. (NCAP) 2016 has made a sig- and regional scheduled The carrier introduced a series of nificant change by stating 30% air operators from three cost-cutting measures in addition hybrid-till as the approach to be to higher utilization of its aircraft, used for tariff fixation. The gov- in 2003 - Air India, Jet better network planning and re- ernment has allowed 100% FDI Airways and Sahara negotiations of old contracts. in brownfield airports under the • Air India making Operating automatic route. Airlines to seven for Profits: Flying high on the back of national coverage - low fuel prices and other opera- Indian carriers are tional improvements, Air India becoming healthier Air India, Jet Airways, has made an operating profit of In the last 13 years, India has Vistara, IndiGo, INR 105 cr. in fiscal 2016. witnessed significant growth in SpiceJet, GoAir and the number of national and re- Regional Connectivity gional scheduled air operators Air Asia India and Scheme – A game changer? from three in 2003 - Air India, three with regional India’s Regional Connectivity Jet Airways and Sahara Airlines Scheme (RCS) in civil aviation to seven for national coverage - coverage in 2016 - Air provides a unique opportunity to Air India, Jet Airways, Vistara, Costa, Air Carnival take flying to the masses by way IndiGo, SpiceJet, GoAir and Air of fiscal incentives, infrastructure Asia India and three with region- and Trujet.It has support and monetary subsidies. al coverage in 2016 - Air Costa, also seen the painful Air Carnival and Trujet. It has The target airports for RCS in- also seen the painful demise of demise of several clude 398 unserved and 16 under- several airlines. Competition is airlines. Competition served airports.The scheme is market driven as in, the onus is now heating up and passengers is now heating up and on air operators to approach the are spoilt for choice. passengers are government with their fleet and As part of the NCAP, the con- network plan and the govern- troversial, anti-competition ‘5/20 spoilt for choice. ment will play the role of a facili- rule’ was replaced by 0/20 rule tator. The airfare for 500 km dis- which means that all domestic tance has been capped at Rs 2500 carriers can start flying on inter- • Stock-market listing of Indigo and the Viability Gap Funding national routes if they deploy 20 Airlines: Listing of Indigo high- (VGF) per seat for different stage aircrafts or 20 percent of the total lights the strength of Indigo’s lengths have been fixed. The sub- capacity in domestic operations. growth plans, operational ef- sidy will be for half the seats in an This change in policy has opened ficiency and improving market RCS flight and the remaining are up the global routes for new play- sentiments. free to be sold at market prices. ers wherein the share of Indian • Turnaround by SpiceJet: The The FICCI-KPMG Report on RCS carriers is a low 30%. However, biggest reason behind SpiceJet’s has identified 44 high potential 0/20 rule in reality 3/20, as it takes revival is the hands-on approach RCS airports from among 400 around 3 years for a new airline and commitment of the new in- plus airfields available in India. to create a fleet of 20 aircraft. vestors. The investors brought This is based on various geo- Some other important develop- in confidence to passengers, em- graphical and techno-commer- ments in 2016 in the airline sector ployees, lenders and suppliers. cial parameters. The report has are as follows: The government also played a also identified over 370 possible

KaleidoKaleidoscope January, 2017 31 ARTICLE

is in fact far more secure than the non-biometric identity cards that we currently use at the airports. Air navigation is likely to switch from land-based equipment to a satellite-based system called GPS-Aided GEO Augmented Navigation (GAGAN) which is far more robust, secure and effi- cient. GAGAN will help handle far more air traffic and help re- duce fuel cost by direct routing and smooth descent of aircraft than the current land-based systems. destinations from the shortlisted MoCA’s ‘Air Sewa’ app. RCS airports; the projected finan- The explosion in online apps has The time to change is NOW cial statements for four aircraft permitted a shift from paper to The Indian civil aviation indus- types and suggestions for fur- online search engines, journey try is well set on its target of be- ther improvement of the scheme. planning, ticketing, meal orders coming the third largest aviation The report, released by the union and check-in etc. Disruptive digi- market by 2020 and the largest aviation minister Mr. Gajapathi tal travel agent apps marketed by 2030. However, massive im- Raju can serve as a useful refer- by ‘managed service providers’ provements are required in air- ence material to prospective RCS (MSP) could present travellers ports, airlines, air-navigation, cargo, MRO, ground handling, operators. with a range of alternative jour- safety, security, skill-building and ney plans, calculating and ag- use of technology. The Indian Digital aviation gregating total time and costs; aviation sector has to become is the way forward then purchasing all the elements welcoming enough for the best of Digital technologies play a piv- of a chosen route and upload- global players to come, compete otal role in the realisation of the ing the same to the passenger’s and enrich the market here. We policy objectives announced by smartphone. do not have the luxury of time. Government of India as a part Making product selection and With NCAP 2016, the govern- of NCAP 2016. The Digital India payment easier can enhance re- ment has given the right policy initiative of the government is tail sales at airports to a time- push. The Regional Connectivity a great enabler. It is centred on challenged passenger. Higher Scheme will help take global trav- three key areas – digital infra- non-aeronautical revenues to the ellers to the untapped natural, his- structure as a utility to every citi- airport operator help bring down torical and cultural wonders that zen; governance and services on aeronautical charges as per the lie hidden in India; and bring in demand and digital empower- current tariff system. ment of citizens. more traffic from India’s interiors An interesting development into the national air grid. The gov- Mobile telephony has become an over the past few years has been ernment, industry and civil soci- integral part of people’s lifestyle the positive response by regula- ety now need to engage closely to in India. The aviation sector can tory authorities towards digi- address the various aviation op- leverage digital technologies to tech. Aadhaar based biometric portunities and challenges. With understand the needs of individ- scanning and matching with the the right policies and continuous ual passengers and provide per- airline passenger data, can al- focus on cost, quality and pas- sonalised on-demand services. low seamless movement of pas- senger convenience, India is well Passengers can also access date sengers from airport entry gate placed to become a top aviation and register their feedback on to the aircraft entry gate. This hub in the next ten years.

32 KaleidOscope January, 2017 ARTICLE Civil Aviation in India: Poised for Take-off

Dhiraj Mathur Partner Regulatory Services & Leader PwC India

he aviation market in India The decision to allow FDI up to be started with one or two air- is among the fastest grow- 100% in Scheduled Air Transport craft. The NCAP has introduced Ting in the world driven pri- Service/ Domestic Scheduled a new category of airlines called marily by the sustained growth Passenger Airline and regional SCA for whom there have been of the Indian economy and dip in Air Transport Service (under ap- relaxations in the paid-up capital, the price of ATF in the last year. proval route for investments more number of aircraft and exemption The CAGR of the domestic pas- than 49%) will attract much need- from Route Dispersal Guidelines sengers carried between 2006-07 ed funds to this capital intensive (RDG)have been provided so and 2015-16 has been 10.17%. Key sector which has long gestation that they can operate minimum drivers of growth of Indian avia- period. This change has levelled number of movements per week tion market are rising GDP, ex- the playing field for existing and to RCS destinations and have panding middle-income group, new airline hence, only non-stra- aircraft with less than 100 seats. favourable demographic struc- tegic or financial investors would The RCS also aims to improve ture, rising urban population, be able to hold up to 100% FDI in connectivity by providing fis- shift in market towards Low Cost Air Transport Services. cal incentives and infrastructure Carriers (LCCs), investments in The so-called 5/20 rule had cre- development. These innovations airport and related infrastructure, ated an artificial grouping of air- in policy are likely to create two growing tourism, global integra- lines which was an outcome of new categories of airlines: the tion of businesses and global shift knee-jerk policy-making and its SCAs and airlines that operate of traffic Asia-Pacific Region. recent amendment has now sig- largely on RCS routes. These air- The Civil Aviation sector in India nificantly lowered entry barriers. lines would be distinct from and is poised to be a key driver of This amendment, coupled with in addition to the existing Full economic growth of the country. the other changes, is expected to Service Carriers (FSC) and LCCs. It is already the fastest growing transform the face of the aviation The Indian aviation market is domestic aviation market in the sector.The amendment would at- extremely price sensitive and the world and will growat a faster tract new entrants, lead to new key to success for any airline is pace once the new National route development and increase to be able to provide quality ser- Civil Aviation Policy (NCAP), competition in the aviation sec- vice at appropriate price points. Scheduled Commuter Airlines tor. Retaining the requirement It can be argued that FSCs and (SCA), Regional Connectivity of 20 aircraft is reasonable be- LCCs could also enter the SCA Scheme (RCS), proposed aviation cause first the entire 5/20 issue and RCS segments. However, it infrastructure development mea- was holding up the release of the must be noted that there are sures alongwith liberalisation new policy and secondly the in- great operational differences of FDI norms begin to play out. ternational operations can now between the FSCs and LCCs

Kaleidoscope January, 2017 33 ARTICLE

the government could explore supportive/facilitative interven- tion on behalf of players. With the favorable demographic profile of the country, government easing out its regulatory poli- cies and the aerospace industry expressing their enthusiasm for “Make in India” the potential ex- pansion in this sector offers bright employment prospects. Looking forward, the aerospace and avia- tion sector will require a decisive and coordinated effort to strength- en whilst expanding the supply of skilled/experienced workers as well as professionals. This growth on the one hand and SCAs and the governments should resist the will be influenced by a number of RCS operations on the other like:- temptation of increasing taxation factors including investment in on ATF. Availability and financ- • The size of aircraft where FSCs product development,tools, capi- ing of smaller planes will be an and LCCs have narrow bodied tal equipment, infrastructure and issue as well as the training infra- single aisle aircraft with seat ca- human capital. pacities between 144 and 190, structure for pilots. This is where Indian aviation infrastructure SCAs have been restricted by will need to keep pace with guidelines to 100 seats. The Indian aviation growth of the industry. Flexibility • Availability of pilots with re- market is extremely has to be a key priority where quired type rating and avail- clearing rules and handling pro- ability of training facilities, the price sensitive and the cedures are made more custom- existing training facilities in the key to success for any er-friendly for better transporta- country are largely focused on tion and logistics supports. Some airline is to be able to wide/narrow bodied aircrafts op- aspects that need to be still ad- erated by FSCs and LCCs. provide quality service dressed are taxes on fuel prices • The infrastructure and ATF at appropriate price which are among the highest in related costs will be controlled the world and we are still losing through provisions of RCS for points. It can be argued 90% of domestic MRO business SCAswhereas the operating costs that FSCs and LCCs could to our regional neighbours. The will have to be kept in check by also enter the SCA and congestion problem at major air- airlines which implies that the ports is affecting on-time perfor- business model for operating RCS segments. mance of many carriers where the airlines would have to be However, it must be terminal capacities have not kept different. pace with the increase in aircraft noted that there are movements. We need a synergis- The success of these initiatives great operational tic effort to support the evolving would depend on a number of differences between the trend of the Indian civil aviation factors, the most important one sector. Dynamics of the indus- is that governments must sign up FSCs and LCCs on the try today suggest evolution of a to the RCS and then honor their one hand and SCAs and demand-led development of the financial commitments on time. sector which would enable an im- The rules regarding implementa- RCS operations on the proved economic environment, tion of RCS and VGF should be other like:- increased regional business po- kept simple and transparent and tential and growth in tourism.

34 KaleidOscope January, 2017 ARTICLE Indian Civil Aviation Sector – New Initiatives & Issues

Dr. R. K. Tyagi Former Chairman,HAL, PHHL

ndia today is 9th country scheme (RCS) wherein unserved/ underserved airstrips which have in the world in terms of do- under served airstrips were potential to be connected. The Imestic and international pas- identified for connectivity and scheme assumes significance in senger traffic. We are one of the concepts like Airfare cap and view that at present more than fastest growing aviation market Viability Gap Funding (VGP) 60% of domestic traffic is handled with 85 million domestic passen- have been introduced. just by 6 metro airports and a vast gers handled in the year 2015-16 NCAP-2016 aims to create an eco majority of Indian population increasing to 100 million plus in – system to make flying afford- still needs to be connected for the year 2016-17. Civil aviation able for the masses and to enable tourism, trade and traffic. in India today is a 16 Billion USD 30 crore domestic ticketing by RCS provides for Airfare cap per industry with 5600 plus air craft 2022 and 50 crore by 2027 (from RCS seat for various bands of dis- movements per day. The pas- 7 crore at present). Similarly the tance. For example, Rs 1,420 have senger growth in last five years cargo volumes should increase to been fixed for a stage length of on CAGR basis is 7.6% for in- 10 million tons by the year 2027. 150- 176 kms and Rs 2,170 for a ternational traffic and 9.9% for The mission is to provide safe, stage length for 376-400 kms. For domestic sector (overall 9.3% secure, affordable and sustain- Helicopter flying, an airfare cap growth). Three enabling factor able air travel for passengers and of Rs 2500 for up to half an hour for the growth are – First, ideal air transportation of cargo with flight and of Rs 5000 for a flight geographical location between access to various parts of India duration beyond 60 minutes has eastern and western hemisphere, and the World. Some of prime been fixed. The concept of airfare second – strong middle class of objectives envisaged in NCAP- Capping depending on distance/ about 30 crore Indians and third – 16 are to establish an integrated time of flight has been widely a rapidly growing economy at the eco-system which will lead to appreciated by the industry as it rate of 7% plus of GDP. significant growth of civil avia- will open up new vistas of eco- The year 2016 will be remembered tion sector, ensure safety and se- nomic growth and prosperity for as a golden year in the history of curity of travellers and promote far flung and remote areas. Indian aviation. For the first time the entire aviation sector chain in Independent India, National in a harmonized manner cover- Growth of Aircrafts civil aviation policy- (NCAP- ing cargo, MRO, general aviation, in India 2016) was announced by the aerospace manufacturing and There are more than 430 aircrafts Ministry of Civil Aviation laying skill development. presently in active use by domes- the foundation for future growth Regional connectivity scheme tic airlines in India. Keeping in of Aviation in India. This was fol- (RCS) announced in October view the future traffic growth, lowed by Regional connectivity 2016, has identifies 394 unserved/ it is expected that over next 20

KaleidoKaleidoscope January, 2017 35 ARTICLE years, 1610 new aircrafts (1230 flights. For regional connectivity a key role in remote area con- single-aisle and 380 wide bodied) to succeed, additional 75-100 air- nectivity, intra-city movements, will be inducted in Indian skies, ports need to developed in first tourism, law enforcement, disas- with an overall acquisition cost phase at an investment of approx. ter relief, search and rescue and of approx. $ 224 B plus. In addi- Rs 6,000 cr. In order to match with emergency medical evacuation. tion to this, there is a need to in- rising expectation of travellers at India currently has approx. 270 troduce smaller aircraft (20 seats Airport handling, huge invest- helicopters which is less than 1 % or less) for meeting the need of ments to the tune of Rs 10,000 of world helicopter strength. Regional connectivity plans. or plus will also be needed for World over more than 10,000 he- In last ten years, Aerospace in- technology upgrade of the ex- licopters are used for emergency dustry in India has grown sig- isting airports. Airports need to medical services and law & order nificantly in technology and busi- achieve higher efficiencies as they maintenance. However, in India, ness strength. Atleast 100 Indian embrace the digital revolution, these applications still need to be companies are now part of global rethinking what customers value developed in a state sponsored supply chain of Aerospace and the most and creating the operat- & supported program. There is Defence companies world over. ing models that leverage the new a need to create separate heli- Various small aircrafts like CNM- technologies. Near field commu- copter corridors and a specific 5, Dornier and SARAS are now in nication and digital luggage tags Helicopter cell at DGCA. along with smart security using the indigenous development cy- India has a vast coast line of 7000 body scanners and biometric cle. However, among the BRICS km plus and therefore, Seaplanes checkpoints also need to be intro- countries, India is the only coun- have a great potential for growth duced at Indian airports. try which does not have its own of tourism, regional connectivity Regional Aircraft. Preliminary and coastal surveillance along the Helicopters & Seaplanes studies submitted by NAL-HAL coast line. At present only one Historically helicopters in India show that with a budget alloca- seaplane is in use in the entire have played a crucial role in tion of $ 2 B, a regional aircraft country and there is a need to de- remote connectivity in North can be developed in a period of velop plans to introduce at least east, Andaman Nicobar and 5-7 years thus putting India in the 100 seaplanes in India. For this, Lakshadweep islands. Use of elite league of aircraft manufac- a project under ‘Make in India’ Helicopters has led to a paradigm turing countries. can also be developed. Seaplanes shift in travelling habits to shrines are also considered more suitable like Vaishnodevi ji, Kedarnath ji Airport Infrastructure and cheaper options for remote and Amarnath ji etc. At present, 75 plus airports across area/island connectivity as their the country receive commercial In India, Helicopters can play per hour flying cost is one third

36 KaleidOscope January, 2017 ARTICLE of the flying cost of helicopters.

Maintenance, Repair and Overhaul (MRO) At present annual MRO spend of Indian carriers is around 5000 crore and likely to cross Rs 10,000 crore/year in next 5 years. 90 % of MRO allocation is currently spent outside India in countries like Srilanka, Singapore, Malaysia & UAE etc. By a rough estimate MRO costs in India are 30-38% higher than neighbouring coun- tries due to higher custom/excise, VAT and Airport taxes/charges. Given our technology and skill base, India has a potential to de- India has a vast coast a multiplier effect on the econ- velop as a major MRO hub in omy of a country. As per ICAO line of 7000 km plus and Asia provided the duty/taxation (International civil aviation or- structure is suitably rationalised therefore, Seaplanes ganisation), the output multiplier by the government. and employment multiplier for have a great potential investments in Civil Aviation Aviation Safety for growth of tourism, are at 3.25 and 6.10 respectively. For a steady & confident growth regional connectivity During the last year, India wel- of civil aviation in India it is nec- comed 7.7 Million tourists, against essary that regulatory bodies are and coastal surveillance 11.8 M by Malaysia and 55.6 M by autonomous and safety over- along the coast line. China. With the vast cultural heri- sight system is strong. In India, tage and good in-land air connec- Directorate General of Civil At present only one tivity, there is a upward potential Aviation (DGCA) is assigned to seaplane is in use in for tourist influx to India. As per this responsibility. DGCA has Ministry studies an increase by 10 taken several good initiatives like entire country and there million tourists in India can lead creation of single window system is a need to develop to additional GDP growth of 0.5 for all aviation related transac- percent. plans to introduce at tions, queries and complaints. An The growth of aviation sector in automation project – eGCA has least 100 seaplanes in India is inevitable. However, the also been introduced. India. For this, a project speed and spread will depend Historically the twin role of on how the government is able DGCA as regulator and also as under ‘Make in India’ to provide an eco-system for the implementer has been consid- can also be developed. harmonized growth of various ered as a role conflict situation. aviation sub sectors like: Airlines, There is a need to create a fully Airports, cargo, Maintenance and autonomous institution like Civil repair organizations, general avi- Aviation Authority (CAA) on ation, Aerospace Manufacturing lines of FAA of USA. The state and skill development in related safety program (SSP) also needs Bureau (AAIIB) for speedy and areas. Recognition of civil avia- to be fully implemented at highest professional investigations. tion sector as infrastructure sector priority. Suitable manpower also along with adequate investment needs to be inducted in Aircraft To Sum Up enabling, may further accelerate Accident and Investigation Growth of aviation sector has the growth.

KaleidoKaleidoscope January, 2017 37 ARTICLE Impact of National Civil Aviation Policy 2016- Flying to tier-II cities to get affordable, subject to implementation hurdles; New airlines to gain a space in international skies faster Kinjal Shah Assistant Vice President ICRA Limited

he Ministry of Civil airport charges; however, the re- of the scheme. Further, the state Aviation (MoCA) released striction on maximum number governments would also need Tthe National Civil Aviation of seats per flight under the RCS clarity on the long term benefits Policy (NCAP) on June 15, 2016, truncates the available benefits. before committing immediate after incorporating feedback from ICRA believes that considering support. the various stakeholders on the a maximum cap of 40 RCS seats The scheme provides a good op- draft policy which was released in an RCS flight, ideal aircraft ca- portunity for regional airlines on October 30, 2015. The NCAP is pacity would be 80 seats. Aircraft to stabilise their troubled opera- aimed at providing a favourable with higher capacity would tions. These airlines are currently eco-system and a level playing have to operate more non-RCS operating on regional routes, field to various stakeholders like seats which would not be eligible which are less lucrative than the airlines, airports, cargo, main- for VGF, which may necessitate tier-I routes, without any fis- tenance repairs and overhaul use of smaller aircraft, restricting cal support and they can benefit (MRO) services, and to make fly- some operational and financial from the scheme. However, broad ing affordable for the masses. flexibility. Though the proposed based participation of key stake- Some of the key areas discussed financial support in the form holders like airlines and state under the NCAP are as below: of VGF would be a key aspect governments would be critical for of the RCS, uncertainty on VGF success of the scheme. Clarity on Regional Connectivity tenure and cap on VGF might some of the areas of the scheme As per the Regional Connectivity prove to be deterrents for partici- including – likelihood of exten- Scheme (RCS) – UDAN –released pation of airlines. Nevertheless, sion of tenure for VGF, possible by the MoCA on October 21, 2016 indexation of VGF to ATF prices lack of exclusivity on certain lu- to be implemented from January and USD-INR exchange rate crative RCS routes and its com- 2017 - the airfares on the RCS would provide partial de-risk- mercial implications on airlines, routes would be capped from Rs. ing for the participating airlines financial viability of other stake- 1,420 to Rs. 3,500 for various stage from these two key cost elements. holders like RCS airports and lengths ranging from 151 km to Since the RCS relies heavily on airport operators, possible op- 800 km, respectively. The par- regulatory support from the cen- erational challenges at existing ticipating airlines would benefit tral and state governments, the airports in order to serve RCS from support in the form of via- participating state governments flights – would be required for bility gap funding (VGF) from the need to extend financial and op- broad-based participation of Central and State Governments, erational support. Hence, finan- stakeholders and consequent suc- as well as lower taxes, levies and cially weaker states might opt out cess of the scheme.

38 KaleidOscope January, 2017 ARTICLE

Scheduled Commuter The Ministry of Civil Airports Airlines Aviation (MoCA) The MoCA has articulated the The NCAP has proposed a new need to reduce airport charges category of airlines which are es- released the National in order to make aviation indus- sentially lower capacity carriers Civil Aviation Policy try viable. Further, the hybrid-till connecting remote locations. The model of tariff determination for airlines are expected to be low cost (NCAP) on June 15, 2016, new airports will help balance the interests of airport operators carriers given that they would after incorporating benefit from relaxed guidelines, as well as passengers. However, fiscal support and probable sub- feedback from the there is lack of clarity on whether the hybrid-till model, coupled sidy support; thus benefitting the various stakeholders on regional passengers. with lower airport charges would the draft policy which make the airport operations vi- able, or whether the same would Rule for was released on October international flying be subsidised by the State/ Central The NCAP has modified the 5/20 30, 2015. The NCAP is Governments. This would be a key determinant for the entry of rule (which required domestic aimed at providing a airlines to complete five years of the private players. domestic flying and have a fleet favourable eco-system Maintenance, repair and of 20 aircraft before they can oper- and a level playing field ate on international routes) with a overhaul new one i.e. 0/20. As per the new to various stakeholders With a view to develop India as rule, all airlines can commence like airlines, airports, an MRO hub in Asia, attracting international operations provid- business from foreign airlines, ed that they deploy 20 aircraft or cargo, maintenance the MoCA has proposed elimina- tion of various taxes and duties 20% of total capacity, whichever repairs and overhaul is higher, for domestic operations. (including among others, VAT, This would allow new airlines to (MRO) services, and to customs duty, airport royalties, additional charges on MROs) commence international opera- make flying affordable tions earlier than five years, pro- and simplification of approval vided they can ramp up the fleet for the masses. process. Consequent growth in rapidly. In ICRA’s view, ramping the domestic MRO industry will up the necessary capacity would have the dual effect of augmenta- take at least two to three years. routes) and Cat-IIA (1% of Cat-I tion of revenues of airport opera- routes) routes. However, reduced tors as well as reduction in costs Route Dispersal requirement for Cat-III routes for the airlines. Guidelines (RDG) (35% of Cat-I routes as against Taking a note of increased traffic 50% earlier) will be beneficial Code share on major routes, the NCAP sug- for the airlines as they can dis- agreements gests addition of more routes in continue operations on some of Some of the key highlights under Cat-I from the earlier 12 pre-de- the loss-making routes in Cat-III this include – Liberty to Indian fined routes to addition of new (provided the reduction in per- carriers to enter into code share routes having flying distance of centage requirement is irrespec- agreements with foreign carri- 700 kms or more, average seat tive of the airline’s participation ers for any destination within factor of 70% and annual traf- in RCS). Overall, these proposed India available under air service fic of 5 lakh passengers. This changes in RDG would be mar- agreements (ASA); complete lib- would adversely impact airlines’ ginally negative for the airlines eralisation of international code- performance as there would be – with capacity deployment on share between Indian and foreign proportionately increased re- loss-making/ less profitable Cat- carriers subject to ASA; and no quirements for flying on less II and IIA routes increasing from prior approval requirement from profitable Cat-II (10% of Cat-I current 6.8% to 7.5%. MoCA– Indian carriers just need

Kaleidoscope January, 2017 39 ARTICLE to inform MoCA 30 days prior Ground handling on the revenues of GHAs as also to starting the codeshare flights. All major airports would have the airport operators. Further, This will help airlines expand atleast three ground handling with no rationalisation of royal- their offerings in terms of num- agencies (GHAs), including Air ties and other charges levied on ber of destinations, and in some India’s subsidiary/ JV at an air- GHAs, the profitability of GHAs cases, the flight timings that they port to ensure fair competition. will be impacted. can offer potential customers, However, while the airlines will To sum up, the key takeaways without having to operate their benefit from increased competi- from the NCAP for the key stake- own aircraft. tion, it will have a negative impact holders are as below:

Airlines Passengers Positives Positives • Easier international flying norms for new airlines • Strong regional connectivity at affordable prices – target fare of Rs. 2500 for one hour flight • Fiscal support for flying on regional routes • Improved options for international flying • Better infrastructure • Higher safety standards • Lower airport and other related charges Negatives Negatives • Increased competition for international routes • Levy on Cat-I and Cat-III routes to increase fares; however, would not materially impact demand • Changes in RDG – marginally higher capacity requirement on Cat II/ IIA routes Airports Support Services Positives Positives • Regulatory clarity with hybrid-till to be adopted • Policy level support and ease of doing business for uniformly for tariff MROs • Fiscal support for strategic airports • Improved ground handling services • Regional connectivity to boost performance of more • Policy level support for cargo operations number of airports Negatives Negatives • Viability of airports in the context of hybrid-till model • Impact on profitability of GHAs with increased and lower airport charges competition and no rationalisation of royalties and other charges levied

40 KaleidOscope January, 2017 ARTICLE Indian Aviation Industry

Rakesh Bihari Jha Special Correspondent, Business Bureau The Pioneer

ndia aviation industry is designed to propel the growth of aviation market (defined by traf- booming after a long gap and airlines which, we already know, fic to, from and within the coun- Iwitnessing over 20 per cent is rising by leaps and bounds ev- try) around 2029. India is cur- growth due to a variety of posi- ery passing day. Keeping positive rently the ninth largest aviation tive reasons and with the scrap- factors in mind aviation experts market in the market. ping of much abhorred 5/20’ say India’s domestic market is on Continous lower ATF prices and overseas flying norms and relax- track to surpass 100 million pas- rise in domestic disposable in- ing of FDI rules, the sector has sengers in FY2017. After a strong come worked wonders for the sec- got a further boost. Moreover, FY2016, traffic growth has accel- tor and customers as a whole as with UDAN coming into opera- erated further in FY2017, with a result passenger traffic during tions earlier this year, the com- India likely to overtake Japan this January-November 2016 zoomed mon mass will truly be able to year to become the world’s third by 23.10 per cent to 90.36 mil- fly at an affordable price to even largest domestic market behind lion and National Civil Aviation smaller cities. But experts opine the USA and China. Policy (NCAP), is expected to fur- inadequate infrastructure and Global airline body International ther strengthen the sector. high operating costs might work Air Transport Association (IATA) NCAP did away with contro- as limiting factors in industry’s says India will become the third versial 5/20 norm and now any rapid expansion. largest aviation market in the domestic airline can fly overseas Under Prime Minister Narendra world by displacing the UK in provided they deploy 20 planes Modi, 2016 witnessed a first sys- 2026, while China will displace or 20 per cent of their total ca- tematic and integrated policy the US as the world’s largest pacity for domestic operations.

KaleidoKaleidoscope January, 2017 41 ARTICLE

But, Kingfisher Airlines of Vijay The Government wants to 2.5-3 lakh crore investment is re- Mallya which spearheaded the take flying to the masses quired for airports excluding the demand for scrapping of 5/20 land acquisition cost. He added norm was not there to avail of the by making it affordable that government is a developing new opportunity as it is defunct. and convenient. This regulatory framework for the avi- ation sector to make it asset class The Government wants to take would ultimately lead flying to the masses by making attractive. it affordable and convenient. So, to the growth of the 2016 saw low-cost carrier IndiGo airlines will charge only Rs 2,500 civil aviation sector as a becoming the first Indian airline for one-hour flights and will get to operate the fuel-efficient A320 whole but all domestic tax incentives for operating on Neo plane while another budget unserved routes even as fliers will airlines, barring Air airline GoAir became eligible for have to pay an additional levy to- India, have ganged up international operations as it in- wards regional connectivity fund. ducted 20th aircraft into the fleet. against Government’s The ‘UDAN’ (Ude Desh ka Aam Regional carrier Air received Naagrik) Regional Connectivity notification imposing national operator’s permit from Scheme (RCS) is expected to be- a levy of Rs 7500 to Rs DGCA the league of pan-India come a reality from early 2017. operators as DGCA granted it na- 8500 per flight to create The Government wants to take tional operator’s permit while Air flying to the masses by making a fund for development Pegasus was forced to ground its if affordable and convenient. of regional airports. The operations and its flying permit This would ultimately lead to the was also suspended. Around the growth of the civil aviation sec- Federation of Indian same time, Air Costa shed its re- tor as a whole but all domestic Airlines which represents gional tag and joined the league airlines, barring Air India, have of pan-India operators as DGCA scheduled carriers like Jet ganged up against Government’s granted it national operator’s notification imposing a levy of Rs Airways, Indigo, Spicejet permit. 7500 to Rs 8500 per flight to cre- and Go Air have gone Meanwhile, as per DGCA data ate a fund for development of re- domestic air passenger traffic rose gional airports. to court challenging the nearly 24 per cent in December The Federation of Indian Government notification 2016 to 95.52 lakh from 77.09 lakh Airlines which represents sched- imposing a levy per registered during the same period uled carriers like Jet Airways, of 2015 but IndiGo continued to flight to create a fund for Indigo, Spicejet and Go Air have deliver poor on time performance gone to court challenging the development of regional besides losing market share by al- Government notification impos- airports. most 2 per cent in the month. The ing a levy per flight to create a number of passengers flown by fund for development of regional the 11 local carriers stood at 95.52 airports. The total revenue of airlines is Rs lakh in December 2016 as against Minister of State for Civil Aviation 1.4 lakh crore and is growing at 77.09 lakh a year ago, thereby reg- Jayant Sinha remarked in a FICCI a rate of 20 per cent. He added istering a growth of 23.9 per cent. function saying aviation sector is that as of today 9 crore passenger However, domestic travel de- the sunrise sector of growth and travel domestically and 5 crore mand in 2016 touched nearly 100 going through profound changes. internationally. million mark, with the Indian The aviation sector has dramatic Going ahead, he said that airlines flying a total of 998.88 headroom for growth with 150 Government is working to build lakh ((99.88 million) passengers million passenger trips a year as airport capacity by expanding ex- between the January-December compared to China with 450 mil- isting terminals, building new ter- period of 2016 as compared to lion passenger trips and USA at minals and developing greenfield 810.91 lakh in 2015, an increase of 800 million passenger trips a year. airports. The Minister said that Rs 23.18 per cent over 2015.

42 KaleidOscope January, 2017 ARTICLE

two years back, said the order is a firm one for 155 Boeing 737-8 Max and 50 purchase rights for wide body long haul planes like Dreamliner and the B-737s. “Our turnaround story has been one which has very few parallels in the world today and we are proud of it. SpiceJet has achieved seven consecutive quarters of profit, highest on-time perfor- mance and lowest cancellation and a record load factor of over 90 per cent every month for 20 months in a row,” said Singh. But as experts opine challenges Airline companies are bullish June last year and now has a fleet are many---high operational on their growth and accordingly of 23 aircraft. costs. high cost of aviation tur- ordering new aircraft. Total -or “The A320 neo provides the lat- bine fuel, high service tax and der from Indian air carriers in est technical innovations and un- other charges, shortage of main- late 2016 stand at 900 excluding beatable economics... This new tenance facilities, high foreign the 72 that Go Air recently give. order will further strengthen our exchange rate, competition from GoAir has, in January this year, network by adding more domes- foreign airlines, congestion at air- firmed up the order for 72 A320 tic and international routes in the ports and last not the least, lack neo planes, estimated to be worth years to come,” GoAir Managing of qualified pilots and technical over Rs 52,000 crore, as the no- Director and CEO Wolfgang manpower etc. frills airline expands its fleet and Prock-Schauer had said. While rising crude oil price is prepares to fly overseas. With In one of the biggest aircraft -or not a good sign for our boom- the latest development, the car- ders by an Indian airline, SpiceJet ing airline industry as ATF price rier -- part of the Wadia group -- in the new year announced it constitute a major part of the any now has placed firm orders with will buy up to 205 Boeing planes airlines’ operating cost soaring Airbus for 144 A320 neos (new worth $22 billion (Rs 1.5 lakh air traffic is creating further infra- engine option). The airline in- crore). SpiceJet, Chairman, Ajay structure bottleneck. Thankfully, ducted the first A320 neo -- which Singh, who brought the airline the current Government it trying have better fuel efficiency -- in back from the verge of closure the best on all these fronts.

Kaleidoscope January, 2017 43 ARTICLE Indian Civil Aviation Industry – Vision 2030

M K Shukla Rakesh Ranjan Editor, COO, Indianmandarins.com New Media Network

he country’s civil aviation industry may record a CAGR of among all stakeholders in Indian industry is set into a path 6.75 percent to USD280.51 billion aviation, a bright future is at Tof exponential growth. A in 2026 from USD146.02 billion in hand” said Tony Tyler, Director host of policy prescriptions of the 2016; and spending on business General and CEO, International NaMo administration is designed travel may increase to USD39.88 Air Transport Association (IATA). to make the country the third- billion in 2026 from USD19.9 bil- During April-November 2016, largest aviation market by 2020- lion in 2016, while on leisure trav- domestic air passenger traffic 25 and the largest by 2030-35. el the spending is forecast to rise rose 6.5 percent to 74.57 million Efforts are also afoot to turn India to USD203.5 billion in 2026 from from 60 million during the same into a global air logistics and ser- USD96.20 billion in 2016. period in 2015. Domestic air traf- vicing hub. Riding on the support of a lib- fic is expected to cross 100 million India’s air transport sector sup- eralized policy regime, the civil passengers by FY2017, compared ports eight million jobs and con- aviation industry has entered a to 81 million passengers in 2015, tributes $72 billion in GDP. A re- new era of expansion, driven by as per Centre for Asia Pacific cent International Air Transport factors such as low-cost carriers Aviation (CAPA). Total passen- Association’s (IATA) 20-year air (LCCs), modern airports, foreign ger traffic during FY 2015-16 passenger forecast, India will direct investment (FDI) in domes- increased at a rate of 21.3 per- overtake the UK to become the tic airlines, advanced information cent to 85.57 million from 70.54 third largest market with 278 mil- technology (IT) interventions and million in FY 2014-15, according lion passengers in 2025. By 2035, growing emphasis on regional to Airports’ Authority of India India is expected to be a market connectivity. Consequently, the (AAI) traffic figures. of 442 million passengers, with country has emerged as the ninth the aviation industry supporting largest civil aviation market in In July 2016, total aircraft move- 19.1 million jobs and contributing the world, with a market size of ments at all Indian airports to $172 billion in GDP, according around US$ 16 billion. At the cur- stood at 168,400, which was 14.3 to the IATA-commissioned Value rent pace of growth, it is expected percent higher than July 2015. of Aviation study. to become the third largest avia- International aircraft move- ments increased by 8.2 per cent The data collated by Airport tion market by 2020. Authority of India (AAI) pres- “The world is focused on Indian to 32,830 in July 2016 from 30,330 ents a more robust picture. They aviation – from manufacturers, in July 2015. Domestic aircraft project that by 2020, passenger tourism boards, airlines and glob- movements increased by 15.8 per traffic at Indian airports may in- al businesses to individual travel- cent to 135,570 in July 2016 from crease to 421 million from 223.61 ers, shippers, and businessmen. 117,050 in July 2015. million in 2016; travel & tourism If we can find common purpose India is among the five

44 KaleidOscope January, 2017 ARTICLE fastest-growing aviation markets During April-November seats, sharing of airlines codes, globally with 275 million new increased frequencies and ad- passengers. The airlines operat- 2016, domestic air ditional points of call, during ing in India are projected to re- passenger traffic rose the International Civil Aviation cord a collective operating profit Negotiations (ICAN),2015 held in of Rs 8,100 crore (US$ 1.29 billion) 6.5 percent to 74.57 Antalya, Turkey. in the fiscal year 2016, according million from 60 million • Tata Advanced Systems (TASL) to Crisil. Ltd. during the same period has signed a joint venture with According to the data released American aircraft manufacturing by the Department of Industrial in 2015. Domestic major, Boeing, to establish a cen- Policy and Promotion (DIPP), air traffic is expected ter of excellence for manufactur- FDI inflows in air transport (in- ing aerostructures for Apache he- cluding air freight) between April to cross 100 million licopter initially and collaborate 2000 and March 2016 stood at US$ passengers by FY2017, on integrated systems develop- 931.05 million. Key investments ment opportunities in India in the and developments in the coun- compared to 81 million long term. try’s aviation industry include: passengers in 2015, • US-based aircraft manufac- • Airbus SAS has signed an turer Boeing plans to assemble agreement with Karnataka-based as per Centre for Asia one of its two helicopters namely, Aequs Aerospace, an aircraft Pacific Aviation (CAPA). Chinook (heavy-lift) or Apache component maker, for the sup- (attack type) in India, thus becom- ply of over 100,000 titanium ma- Total passenger traffic ing yet another global company chined parts for its A320 new en- during FY 2015-16 to invest in India encouraged by gine option (NEO) aircraft. the ‘Make in India’ campaign. increased at a rate of • Boeing Company, an American • Airbus, leading European air- plane maker, and Tata Advanced 21.3 percent to 85.57 craft manufacturer, plans to in- vest US$ 40 million in setting up Systems Ltd (TASL), a fully million from 70.54 owned subsidiary of Tata Sons, a pilot and maintenance training have entered into a joint ven- million in FY 2014-15, center in New Delhi, which will be operational by the end of 2017. ture to set up a new facility in according to Airports’ Hyderabad to manufacture • Airbus also expects India’s avi- Boeing AH-64 Apache helicopter Authority of India (AAI) ation industry to grow at over 10 fuselages. traffic figures. percent annually in the next de- • GoAir, India’s fifth-biggest car- cade, almost double the average rier by passengers traveled, has growth rate of the global aviation industry. signed a memorandum of under- Kalyani Group, has formalized standing (MoU) with Airbus to an agreement with Rolls-Royce buy 72 A320 neo aircraft, valued As global aviation giants move Plc, under which BFL will supply to make India home, government at US$ 7.7 billion, as part of an ex- critical and high integrity forged pansion drive. and AAI are working to set up a and machined components for a chain of brownfield and green- • Lockheed Martin Corporation range of aero engines. field airports by 2020. The private plans to make India a manufac- • The Ministry of Civil Aviation sector is being encouraged to be- turing base for its F-16V fight- has signed Memorandum of come actively involved in the con- er jets, C-130J Super Hercules Understanding (MoU) with struction of airports through dif- military transport planes, and Finland, Kazakhstan, Kenya, ferent Public Private Partnership helicopters. Sweden, Norway, Denmark, models, with substantial state • Auto components maker Oman and Ethiopia for increased support in terms of financing, Bharat Forge Ltd (BFL), the flag- co-operation between the coun- concessional land allotment, tax ship company of the US$ 3 billion tries in terms of additional holidays and other incentives.

KaleidoKaleidoscope January, 2017 45 ARTICLE

In the Union Budget 2016-17, at providing space technology for India over the next 10 years to the government introduced vari- construction of airports. improve regional and remote air ous proposals for Maintenance, The Government of India is plan- connectivity. Repair and Overhaul (MRO) op- ning to boost regional connectiv- Gujarat is expected to get a second erations for airplanes. These in- ity by setting up 50 new airports international airport at Dholera. clude customs and excise duty over the next three years, out of The state government has formed exemption for tools and toolkits which at least 10 would be opera- Dholera International Airport Co. used in MRO works. The govern- tional by 2017. Ltd. and is obtaining approvals ment has also scrapped the one- Airports Authority of India (AAI) from the union government. year restriction for utilization of plans to develop city-side infra- The Directorate General of Civil duty-free parts apart from allow- structure at 13 regional airports Aviation (DGCA) has given its ap- ing import of unserviceable parts across India, with help from pri- proval to Air India’s maintenance, by MROs for providing the ex- vate players for the building of repair, and overhaul (MRO) unit. change. As per revised norms, the hotels, car parks, and other fa- foreign aircraft brought into India The Government of India has cilities, and thereby boost its non- for MRO work would now be per- decided to award airports in aeronautical revenues. mitted to stay up to six months or Kolkata, Chennai, Jaipur and as extended by aviation regula- Directorate General of Civil Ahmedabad on management tor Directorate General of Civil Aviation (DGCA), India’s avia- contract. AAI has issued the Aviation (DGCA). Such foreign tion regulator, has signed an ‘Request for Qualification’ docu- aircraft would also be henceforth agreement with United States ment for these four airports. permitted to carry passengers in Technical Development Agency The country’s aviation industry is the flights at the start and end of (USTDA) for India Aviation largely untapped as air transport its period of stay in India. Safety Technical Assistance Phase is still expensive for a majority II, aimed at bringing in sys- of the country’s population, of Some major initiatives under- temic improvements in the area which only 40 percent is the up- taken by the government are: of operation, airworthiness and wardly mobile middle class. licensing. The Ministry of Civil Aviation A report of the India Brand Equity has finalized and put forward for The Government of India has Foundation (IBEF) observes approval to the Union Cabinet, given site clearance to Delhi that “the industry stakeholders the new aviation policy, which Mumbai Industrial Corridor should engage and collaborate includes proposals such as al- and Development Corporation with policy makers to implement lowing new airlines to fly abroad, (DMICDC) for setting up of a efficient and rational decisions the introduction of more region- Greenfield Airport for public use that would boost India’s civil al flights and a new formula for near Bhiwadi in Alwar district of aviation industry. With the right granting bilateral flying rights. Rajasthan and has granted ‘in- policies and relentless focus on The Indian Space Research principle’ approval to 13 other quality, cost and passenger inter- Organisation (ISRO) has signed greenfield airport projects. est, India would be well placed to a memorandum of understand- The Airports Authority of India achieve its vision of becoming the ing (MoU) with the Airports (AAI) plans to revive and opera- third-largest aviation market by Authority of India (AAI), aimed tionalise around 50 airports in 2020 and the largest by 2030.”

References Media Reports, Press Releases, Press Information Bureau, Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI), Union Budget 2016-17, FICCI-KPMG ‘India Aviation Report 2016’.

46 KaleidOscope January, 2017 The Future of the Indian Aviation Industry Passenger preferences and technology to play a key role in the Indian Aviation space

Maneesh Jaikrishna VP, India and Sub-continent, SITA

ith the world’s fastest- serious congestion issues. growing aviation sec- While there is a meteoric rise up Wtor, India is on the the air travel market rankings, cusp of becoming a leader in air India’s aviation industry is large- travel. Its domestic market grew ly untapped. How much and how at a staggering 20.2% in RPK fast this potential is realized de- (revenue passenger kilometres) pends on how quickly airlines terms in 2015 and total passenger and airports embrace the efficien- numbers increased by over 17% cies and passenger convenience last year. There are over 180 mil- that advanced IT systems and ser- lion people traveling to, from and vices bring. Many IT investments within India by air. That figure are specifically targeted at India’s is expected to more than double aspiring, tech savvy middle class. to 370 million by 2020, by which It is notable that while smart- time India will be the world’s phone penetration is less than third largest aviation market. one-third of the general popula- Despite this great potential there tion, the penetration among air are immense challenges to over- travelers is 92%. come. For a start India’s airline in- To thrive in the dynamic environ- dustry faces continuing financial ment, Air Transport Industry in issues even with aircraft flying India needs technology, as per the almost full – domestic load fac- latest SITA IT Trends Benchmark tors were a record 83.2% in 2015. Report which provides 360 de- Managing capacity at airports gree view of air travel in India to keep pace with passenger de- and outlines some of the focused mand is also a major challenge. technology areas. Limited infrastructure means many airports are already operat- India’s Passengers Want ing above their design limits and Tech-Based Travel delays in the development of sec- Air travel operators are having to ond airports, such as in Mumbai, stay nimble and invest in technol- Chennai and Goa, is causing ogy to help bridge the capacity

Kaleidoscope January, 2017 47 ARTICLE gap and all airlines in India ex- and 67% of airports plan major ambitions for self-service pro- pect to see IT budget increases in projects developing mobile ser- cesses globally. For example, web 2017 compared to 2016. This con- vices for passengers. check-in is available to passen- trasts markedly to global airline The opportunity for airlines and gers at all airlines in India and confidence on future IT budgets, airports is to capitalize on the in- was used by 32% of passengers with just over half expecting an creasingly tech savvy population for their last flight, in line with increase and around a third will of travelers. the global norm. see no change in 2017. Much of the increase is driven The vast majority of airports Airports in India are similarly by a boom in mobile-data users (83%) have deployed check-in ki- positive about IT spending going and India ranks very highly on a osks, slightly below global levels, forward with 80% of airports ex- country index of IT usage. but over the next three years the pecting an IT budget increase in remaining Indian airports plan to 2017 compared to airports 58% Industry Aiming to install them. However, usage by expect an IT budget increase in Increase Adoption of Self- passengers is much less than seen 2017 and almost a third expect Service Tech globally with only 10% of passen- budgets to remain static. Currently, 54% of passengers in gers using them, compared to a Also, most airlines and airports India use some self-service tech global average of 14%. in India are targeting IT invest- on their journey and consider- Also, India is a long way behind ment in this area to capitalize on ing plans for the next three years global levels of self bag-drop im- the trend of self-service. Over the airlines and airports in India next three years, 80% of airlines are ahead of, or in line with, the plementations, but over the next few years this rate is expected to accelerate and exceed the global average. By 2019, over 80% of air- ports expect to put in place an as- sisted self bag-drop system. A key enabler for driving high adoption of self-service bag- drop is kiosks that can print bag tags. Today, around two-thirds of Indian airports have kiosks that can do this, well above the global level. However, despite the wide- spread availability, passenger usage of kiosks for printing bag tags is only 19%, on par with the global usage level. Automated boarding gates are still a relatively rare sight hav- ing been deployed at just one in five airports globally. However, Indian airports have been much quicker to adopt the technology and today one in three airports has deployed them, which will double to two out of three by 2019.

Interest for Mobile App Services is Strong Airlines are also starting to make ARTICLE good progress adding informa- By 2019, the majority of airports Industry Gearing Up to tion services to their apps. Within in India intend to have beacons or Manage Cyber Threats three years, flight status notifica- other sensor technology at most While the majority of airlines tions, location-based notifications steps in the passenger journey, in India see cyber security as a and baggage related updates will including check-in, bag-drop, board level priority, they have be available at around 75%-80% boarding and bag reclaim. This not made the same level of prog- of airlines in India, in line with will allow the airlines to launch ress as global airlines where 28% global levels. The availability of new location-based mobile ser- have already fully integrated it airport beacon or sensor infra- vices for passengers during their into their company’s business structure will play a critical role journey. plan. No airlines in India have in enabling these new services. achieved this yet. Overall passengers across the Connected Aircraft to Today a quarter of airlines in globe are becoming so comfort- Ramp Up on-Board Mobile India say they are fully prepared able with technology that they Services to deal with any cyber threat, choose to use it rather than inter- Bringing the aircraft into the IoT whereas there were none three act with people and India is no ecosystem so that passengers can years ago. This is in line with the exception. But one size does not have a truly connected journey global level, but the remaining fit all and the emergence of four from departure to arrival is a long three-quarters of airlines in India distinct traveler profiles- Careful term industry goal. Currently admit to only being in the early Planner, Hyper-connected, Pam- no Indian airline is providing stage of developing plans, which pered and Open-minded adven- on-board connectivity services compares unfavourably with the turer, each of whom use tech- for passengers, but this should 8% of airlines globally. nology in different ways, is a change over the next three years, significant consideration when with half or more airlines plan- Big Data for Smart airlines and airports consider self- ning to introduce a variety of Operations service adoption rates and the in- data-driven services, from basic The widespread introduction troduction of new technology. internet access to streaming mul- of sensor technology is going to timedia files and live TV. produce a vast quantity of new India Starts to Innovte data. This will provide the indus- with IoT Smart Bag Tags to Comply try with new intelligence and bet- Airlines in India also see promise with Lata Resolution 753 ter predictability for operations. in using Internet of Things (IoT) To address the passenger needs, Airlines and airports in India are to improve aircraft efficiencies. the industry is preparing to intro- moving quickly in this direction All airlines surveyed for the SITA duce IATA Resolution 753 in June with major IT programs planned over the next three years, much India IT Trends Benchmark 2016, 2018, which will oblige airlines to more so than seen globally. expect to run an R&D project in track bags from the point of re- the next few years using IoT tech- ceipt from the passenger until it nologies to investigate potential Drones, Robots and Virtual is returned to them at the desti- benefits from monitoring aircraft Reality nation. Many airlines in India are fuel and engines, as well as the Drones and Robots are some of cabin environment in terms of undertaking major IoT enabled the emerging technologies on the lighting and heating. services to be compliant with outer edges of the tech radar. 75% the IATA Resolution 753 over Indian airports too are carrying of airlines in India see the long- the next three years, more so out trials to test IoT related tech- term potential for their use and nologies. There is particular inter- than airlines globally. In fact, all expect trials in the 5-10 year time est in the single biometric token airlines in India will be making frame. for identity management. This some investment towards being A quarter of airlines in India plan has the potential to eliminate compliant by 2019, whereas only trials of virtual reality for either bottlenecks and reduce stress for 74% of airlines globally will be passenger or staff applications passengers. doing this. within five years.

Kaleidoscope January, 2017 49 ARTICLE

RFID is Gaining Importance in Aviation Industry

Roshan Lal Vice President, India Aviation Consulting & Support, LLP

FID stands for Radio- • It provides the RFID tag with information such as product se- Frequency Identification. the energy to communicate. rial number, production date, The acronym refers to maintenance date and informa- R This is an absolutely key part of small electronic devices that con- tion (for aircraft parts) and so on. sist of a small chip and an anten- the technology; RFID tags do not na. The RFID device serves the need to contain batteries, and Benefits of RFID in aviation same purpose as a bar code or a can therefore remain usable for industry magnetic strip on the back of a very long periods of time (maybe Attaching RFID tags to an object credit card or ATM card; it pro- decades). enables easy identification, track- vides a unique identifier for that The scanning antennas can be ing, and monitoring. In aviation object. And just as a bar code or permanently affixed to a surface; industry, which deals with thou- magnetic strip must be scanned to handheld antennas are also avail- sands of parts constantly in move get the information, the RFID de- able. They can take whatever (be it in airlines, aircraft MRO vice must be scanned to retrieve shape is required; for example, it (maintenance, repair and over- the identifying information. could be build into a door frame haul), airport baggage handling, to accept data from persons or ob- or air cargo industry, the benefits How RFID Works jects passing through. from RFID technology enabling How does RFID work? A Radio- When an RFID tag passes through smart identification and track- Frequency Identification system the field of the scanning antenna, ing of movable assets are highly has three parts: it detects the activation signal beneficial. from the antenna. That “wakes • A scanning antenna RFID tags are capable to provide up” the RFID chip, and it trans- unique identification, and hence • A transceiver with a decoder to mits the information on its micro- multiple tags can be read (pro- interpret the data chip to be picked up by the scan- cessed) simultaneously. It highly • A transponder - the RFID tag - ning antenna. enhances efficiency in situations that has been programmed with RFID system can basically col- where one has to deal with a information. lect/store and transfer data wire- large inventory of replenishing lessly using the radio frequency parts (mainly in aircraft MRO). The scanning antenna puts out spectrum. It is unique from bar- Since, RFID tagging enables auto- radio-frequency signals in a rela- code such that the receiver does mation throughout the process, it tively short range. The RF radia- not necessarily need to be within also largely reduces manual labor tion does two things: the line of sight from the RFID (and hence labor costs) involved • It provides a means of com- tag to receive data. Also, the in inventory tracking and logis- municating with the transponder RFID tag can have unique iden- tics handling. Furthermore, since (the RFID tag) and, tification and store any relevant RFID tags itself can store relevant

50 KaleidOscope January, 2017 ARTICLE data it reduces the need to access can automate this process and a database in many cases. reduce the man hour involved in tracking and inventory handling Utilization of RFID in processes, and also accurately re- Airports plenish the spare parts as needed. In airports, RFID technology is Thus, for aircraft MRO supply increasingly being used for bag- chains, RFID technology has gage handling. The RFID-tagging brought in process efficiency of baggage are being used by and cost savings by reducing some airlines and airports which the amount of manual tasks in- largely help towards the goal volved, and inaccuracy involved of enabling automated check-in with inventory management. for passengers. Using such au- tomated processes can speed up Some more benefits of the baggage check-in process, in For an airline, the safety equip- ment inside an aircraft cabin RIFD the airports equipped with RFID- RFID tags come in a wide variety enabled check-in stations. This has to be traced and checked for on-board availability. Airlines of shapes and sizes; they may be saves time for both the passen- encased in a variety of materials: gers and airport personnel, and are utilizing RFID tagging (and enhances customer satisfaction. hand-held RFID reader) which • Animal tracking tags, in- can scan and identify those ob- serted beneath the skin, can be Also, RFID-tagged bags have jects much faster, than otherwise rice-sized. higher read rates over the barcode done manually. system.This lead to increased ac- • Tags can be screw-shaped to curacy in baggage handling, and identify trees or wooden items. fewer instances of mishandled In Aircraft MRO • Credit-card shaped for use in baggage, or baggage being lost or RFID is highly beneficial for air- access applications. craft MRO as well. In an MRO stolen. Airlines and airports have • The anti-theft hard plastic tags jumped into this trend of ‘smart facility there are hundreds of tools and parts that are used and attached to merchandise in stores baggage handling’ to provide are also RFID tags. their customers with hassle free moved constantly, in every day experience and also the ‘peace operations. Misplaced or lost • Heavy-duty 120 by 100 by 50 of mind’ regarding the baggage tools and equipment is a common millimeter rectangular transpon- handling process. issue. Misplaced tools are also ders are used to track shipping a major cause of FOD (foreign containers, or heavy machinery, For Airlines and Aircraft object damage) in a MRO facil- trucks, and railroad cars. Manufacturers ity. RFID utilization has proved highly effective to eliminate this Aircraft manufacturers/OEMs Some common problems problem. are using RFID in many of the with RFID aircraft parts and components Also, the maintenance process Some of problems are reader col- that are delivered to the custom- needs constant verification of lision and tag collision. Reader ers. This allows the customer service orders and availability of collision occurs when the signals to easily track the status of the spare parts. Aircraft MRO -per from two or more readers over- parts throughout the logistics sonnel has to manually track lap. The tag is unable to respond process (from the point of manu- these changes, as well as the pa- to simultaneous queries. Systems facturing to on-site destination). perwork regarding the inventory must be carefully set up to avoid Furthermore, manufacturers use and maintenance operations. It this problem. Tag collision occurs RFID-tagging in many of the ro- has been found that maintenance when many tags are present in a table aircraft parts, which helps personnel spend a large chunk of small area; but since the read time to aggregate the manufacturing his time everyday in inventory is very fast, it is easier for vendors and maintenance data through- paperwork rather than on actual to develop systems that ensure out the life-cycle of the part. maintenance work. RFID tagging that tags respond one at a time.

Kaleidoscope January, 2017 51 52 KaleidOscope January, 2017 Kaleidoscope January, 2017 53 ARTICLE

54 KaleidOscope January, 2017 43rd AGM of SCOPE held

SCOPE held its 43rd Annual General Meeting of the Governing Council of SCOPE (the apex body of PSEs) on 28th December 2016. Mr. Ved Prakash, Chairman, SCOPE & CMD, MMTC and Dr. U.D. Choubey, Director General, SCOPE addressed the AGM attended by large number of Chief Executives, Directors and Senior Executives of PSEs. In Mr. Ved Prakash, Chairman, SCOPE & CMD, MMTC addressing the 43rd AGM his address Mr. Ved Prakash, of SCOPE (On Right) and Dr. U. D. Choubey, DG, SCOPE is also seen in the Chairman, SCOPE informed photograph. that SCOPE has transformed its role to become more proactive to enable the PSEs to compete in today’s highly dynamic global environment. Chairman, SCOPE also welcomed the Indian Government’s move about demonetization of higher value currency notes. He said that SCOPE and Public Sector Enterprises welcome this key economic initiative of the Government of India, which is expected to improve the country’s economy. Dr. U.D. Choubey, Director General, SCOPE in his address gave detailed account of various activities and initiatives of SCOPE. While highlighting the initiatives, Dr. Choubey said today HR policies need to be in sync with the business strategies of the organization. Realizing the transformational change required to converge HR into a line function, SCOPE will be organizing the International HR Summit in February next year to share best HR practices adopted globally in both public and private sectors, Dr. Choubey informed.

n his address, Mr. Ved performance and growth of is more than 7 years behind us, Prakash, Chairman, SCOPE & Public Sector Enterprises (PSEs) yet the world economy contin- ICMD, MMTC thanked Chief in India. He said the World eco- ues to struggle to regain momen- Executives of member PSEs for nomic growth in the year 2015- tum. He said that India has been the support extended to SCOPE 16 has been nearly stagnant. a bright spot in this otherwise all these years for the sustained Though the global financial crisis gloomy market.

Kaleidoscope January, 2017 55 SCOPE News

Chairman, SCOPE also wel- graced by the Hon’ble President stated that special thrust has comed the Indian Government’s of India. Chairman also informed been given for safety, security move about demonetization that SCOPE has developed an and improving services. Various of higher value currency notes Advanced Global Leadership measures such as installation of on 8th November 2016. He Program so as to enable the top X-ray Scanner machine, CCTV said that SCOPE and Public management of PSEs to gain bet- & Visitors Management System Sector Enterprises welcome this ter understanding of the global have been taken to improve util- key economic initiative of the economic environment. Based ity services/working. A comput- Government of India, which is on the feedback received from erized complaint cell & grievance expected to bring efficiency in the Member Enterprises, we have im- Redressal cell have been created country’s economy and in turn proved the programme. in both the complexes to under- lower the capital cost, improve in- With regard to initiatives taken stand and promptly attend the vestments, and bring about more by SCOPE towards Corporate complaints of the constituents. employment in the long run. Governance, he mentioned that He appreciated the support, co- operation and involvement of He added that Public Sector par- SCOPE is also organizing pro- constituents of both the building. ticipation in SCOPE’s activities grammes on it. Enhancing the Chairman, SCOPE thanked DPE, have been encouraging and re- standards of corporate gover- Ministry of HI&PE, Government quested more PSEs to participate nance and corporate manage- Agencies, SCOPE Executive in them. The Executive Board of ment has become a pre-requisite Board, DG, SCOPE and SCOPE SCOPE from time to time delib- for the growth and competitive- Officials for supporting SCOPE erated on the issues of concerns ness of the enterprises. in all its initiatives. He added that to CPSEs which were to be tak- While highlighting the growing a calendar of events organized by en up with the policy makers. importance and changing role SCOPE would be circulated in Chairman informed that SCOPE of HR, he apprised about the advance and a meeting of all the had forwarded recommenda- International HR Summit being CEOs is also being considerd. tions/suggestions to the Ministry organized in February 2016.The Dr. U.D. Choubey, Director of Law on the amendment of feedback for the program has General, SCOPE in his address Arbitration Act, after delibera- been very encouraging and has highlighted the financial perfor- tions in the Legal Committee of proved very helpful to HR profes- mance of SCOPE. He stated that SCOPE and the Ministry of Law sionals in dealing with the chal- one of the key developments in has considered quite a few sug- lenging environment. A special the year has been demonetiza- gestions/ recommendations given issue of KALEIDOSCOPE was tion of higher value currency. The by SCOPE. also brought out on the occasion. impact of the move is likely to be He mentioned that the He also said that SCOPE has been positive in the long run as consol- Constitution of the Third Pay organizing programs several pro- idation of capital in the hands of Revision Committee by the grams on RTI Act, Excellence in the Sovereign is a better way for Government of India is a very Occupational, Safety & Health welfare state. welcome step for the PSEs. He in Workplace and Corporate DG, SCOPE mentioned SCOPE briefed the members about Communication Summit that are celebrated Public Sector Day SCOPE’s efforts in this regard. extremely helpful for the PSEs. on 11th April 2016 at Vigyan Speaking about the unique ini- He also mentioned that SCOPE Bhawan. He mentioned that tiative of SCOPE, Academy of conducted a diagnostic study SCOPE is seeking the conve- Public Sector Enterprises (APSE), on Risk Management in CPSEs nience of Hon’ble President of he said that already Three pro- with Price Waterhouse Coopers India for the next Award function. (PWC). This study was dedicated grams have been conducted. He He said that in a meeting with requested more PSEs to take ad- to identify key risk areas which Chairman, PESB where DPE vantage of the program. need to be strengthened. also participated it was decided He briefed about the Public As regards to SCOPE Complex to form a think tank of CMDs/ Sector Day celebration which was and SCOPE Minar, Chairman Directors from PSEs to organize

56 KaleidOscope January, 2017 SCOPE News

Mr. Nirmal Sinha, Former Chairman, SCOPE, handing over Dr. U.D. Choubey, DG, SCOPE handing over the Public the SCOPE Flag to Mr. Ved Prakash, New Chairman, SCOPE Sector Flag to Mr. Ved Prakash, Chairman, SCOPE & CMD, & CMD, MMTC. MMTC. a workshop in all four Chapters mentioned that SCOPE would share the implications of RTI Act of SCOPE (North, South, East and also consider tailor made pro- and its importance in corporate West) where best practices in HR, grams for PSEs. governance of CPSEs. During Finance, Business Development Talking about the Advanced the Annual Convention of CIC & Innovation would be shared. Global Leadership Program that in November 2016, SCOPE and PSEs were exclusively given a DG, SCOPE also apprised that is jointly organized by SCOPE session and presentations were DPE notified appointment of the and IIM Calcutta, DG, SCOPE also made. 3rd Pay Revision Committee un- said that the 5th in the series der the chairmanship of Justice Advanced Global Leadership SCOPE Forum for Conciliation & Satish Chandra (Retd). In this re- Program was organized in Arbitration (SFCA) has been con- gard, SCOPE engaged M/s Aon August-September 2016 for Chief stituted for resolution of disputes Services India Pvt. Ltd. to study Executives, Functional Directors, arising out of various contract the pay structure and emolu- Executive Directors and General agreements between PSEs and Managers. The two week pro- Private Enterprises/Cooperatives ments in different sectors and gram was conducted in both in the most cost and time effective CPSEs and provide recommen- Europe and USA. manner. It also provided a plat- dations thereof. A number of form for sharing latest develop- interactions were organized by DG, SCOPE informed the gath- ment in the areas of arbitration, SCOPE. Recommendations have ering that after successful com- conciliation, legal laws, interna- since been submitted. pletion of two HR Summits in 2015 and 2016, SCOPE will or- tional contracts etc., he added. DG, SCOPE spoke about the ganize the third international DG, SCOPE mentioned the SCOPE’s coveted award SCOPE HR Summit in February 2017 various programs organized Meritorious Awards and said that for which international fac- by SCOPE, like, Reforms in Winners were decided under dif- ulty would also be drawn. He Labour Laws; Occupational ferent categories. He said that the also apprised the members that Safety & Health; Preparing on next award has also been initi- SCOPE successfully organized GST; Climate Change; Internal ated and PSEs can follow the due the 14th program on Corporate Finance Controls; Ind AS; Cyber procedure to participate in the Governance in November 2016. Security; E Governance; Project Award. With regard to effective imple- Management; Wellness Programs While briefing the Members about mentation of RTI Act in CPSEs, and many more. the initiatives taken with regard he mentioned that SCOPE has Talking about the quality of to setting up of the Academy of been regularly organizing inter- monthly magazine of SCOPE- Public Sector Enterprises, he active sessions on RTI Act 2005 to KALEIDOSCOPE, he said that

Kaleidoscope January, 2017 57 SCOPE News

Representatives of the Governing Council of SCOPE attending the 43rd AGM. with respect to content and print- He also invited suggestions from in particular, DPE, Ministry of ing quality has improved signifi- Members for the betterment of HI&PE in providing guidance cantly. Special Issues on relevant SCOPE and Public Sector and and support to SCOPE in all its subjects have been released from also thanked the Members for initiatives. He also thanked the time to time. He said that SCOPE their cooperation and unstint- Members of ther Executive Board has been working seamlessly for ed support in the activities of of SCOPE for their valuable guid- the betterment of PSEs. SCOPE. He thanked government ance and support.

Mr. Ved Prakash, Chairman, SCOPE & CMD, MMTC and Dr. U.D. Choubey, Director General, SCOPE delivering Dr. U. D. Choubey, Director General, SCOPE met Cabinet keynote address at the National Seminar on “Best Practices Secretary, Mr. P. K. Sinha on pay revision issue and other in Tendering, Contract Management and Disputes issues to PSEs. Resolution” organized jointly by SCOPE and NLC India Limited at Neyveli.

58 KaleidOscope January, 2017 SCOPE News SCOPE to hold International Conference of SE Asian Countries on Occupational Safety & Health

SCOPE organized the 6th National Workshop on “Excellence in Occupational Safety & Health at Workplace” in collaboration with Ministry of Labour & Employment and International Labour Organization (ILO). Mrs. M. Sathiyavathy, IAS, Secretary, Ministry of Labour & Employment inaugurated the workshop. Chairman, SCOPE & CMD, MMTC, Mr. Ved (From L-R): Dr. U.D. Choubey, DG, SCOPE, Mrs. M. Sathiyavathy, IAS, Secretary, Ministry of Labour & Employment, Mr. Ved Prakash, Chairman, SCOPE & CMD, Prakash and Dr. U.D. Choubey, MMTC, Dr. Avneesh Singh, DG, DGFASLI and Mr. B.B.Chakraborty, Program Director General, SCOPE Director at the 6th National Workshop on “Excellence in Occupational Safety & Health at Workplace.” also spoke on the occasion. Mr. B.B.Chakraborty, Program Director, elaborated on the Program Objectives & Perspective. Dr. Avneesh Singh, DG, DGFASLI, addressed the Participants in the Inaugural Session and also chaired the Session on Construction Safety Management.

r. U.D. Choubey, DG, challenges, he said that capac- actions by the organisations. SCOPE, while welcom- ity building in the area of Safety Mr. B. B. Chakraborty men- Ding Ms. M. Sathiavathy, Management and Equipment tioned that the Special Focus of IAS, Secretary to Govt. of safety is of paramount impor- the event was on Construction/ India, Ministry of Labour & tance.He proposed that in the Project Safety and Issues related Employement, highlighted the year 2017 SCOPE has plans to OS&H for Woman Employees. role of Safety Management in to organize an International Dr. Avneesh Singh mentioned Projects / Construction Activity. Conference/ Symposium on SCOPE and DGFASLI & ILO are He cited the example of Disaster OS&H, in which SCOPE could working closely to achieve excel- in the Union Carbide, Bhopal, collaborate with the Ministry of lence in OSH Implementation. He the Loss was 52 Billion Dollars, Labour & Employment WHO emphasized the need for adoption which is equivalent to assets of 6 and ILO. He said that 2.3 mil- of tools of safety for decent & Safe Maharatana Companies of pub- lion Fatal Accidents per year can work environment as the proper lic sector. While highlighting the be prevented by taking effective OSH implementation reduces

Kaleidoscope January, 2017 59 SCOPE News

in smaller ones. She mentioned about the loss of GDP of the country due to Occupational Diseases/ Injuries and advised CPSES to allocate adequate funds to eliminate all types of Hazards to Improve Work en- vironment and to have separate wing to address OS&H Issues. She said that through the exist- ing Rules and Regulations work- ers in the Industry are well taken care off, but Contractor Workers condition needs to be improved. Mrs. M. Sathiyavathy, IAS, Secretary, Ministry of Labour & Employment giving the CPSEs should ensure registra- inaugural address at the National Workshop. tion of its contract workers with the State Registration Authority to get benefit from the Welfare Occupational Illness / Diseases. to be tested /known. He advised measures from the 1 % cess. Ms. He mentioned that the situation all present to understand the re- Sathiavathy also advised ade- is dynamic and there is continual quirements of achieving excel- quate funding for the Training of improvement in policy imple- lence in OS&H and everyone Contractor Staff and added that mentation. Currently leading should work for it and not de- by expanding the role of ESIC companies are giving more em- pend on chances. He appreciated unorganized sector employees phasis on creation of good OS&H that both WHO & ILO have joined could also be trained regarding Culture for improving OSH per- hands and launched many OS&H formance for which OSH /Safety initiatives regarding collabora- health and safety. campaigns are being organized. tion with Government, Employer Mr. P. P. Mitra, Former Principal Appreciating PSEs, he mentioned & Employees. He highlighted the Advisor, Ministry of Labour & that PSEs are well equipped and loss due to major disasters in the Employment dwelt on “Overview are model employers. He pro- recent past and spoke about ILO’s of the Vision on Reforms in the posed the idea of data collection Global Initiatives on OS&H to area of OS&H”. He asked ex- from all CPSEs by forming spe- mobilize & expand support to de- ecutives to change mindset and cial network of DGFASLI, SCOPE veloping countries. listen to the experiences of shop & ILO. Ms. Sathiavathy, Secretary, floor employees for necessary im- Mr. Ved Prakash, Chairman, IAS, Ministry of Labour & provements. He dealt with details SCOPE & CMD MMTC Limited Employment while inaugurat- the Legislative policy framework while addressing the seminar ing the workshop complimented being formulated by the Govt. emphasized the need for Building SCOPE for enhancing awareness in consultation with all stake Safety Culture at all levels in on OS&H, at all levels in CPSEs holders. He particularly empha- the organization. He urged all and covering the topics such as sized the need of Skill/ Capacity PSEs to nominate large number Construction Safety, Ergonomics Building at shopfloor level for of participants in such useful and Safety Management. She improving OS&H Performance Programs. He said that culture said that the Governemnt Policy of the CPSEs. He emphasized the is to be developed to educate / on Health, Safety & Environment need for Awareness enhancement train Employees. He also invited at Workplace was formulated in at individual CPSE level. suggestions of all for achiev- 2009. Ms. Sathiavathy apprised Dr. S.Baishya, CMO, OIL de- ing Excellence in SCOPE activi- the gathering about separate liberated on the study made ties. Chairman, SCOPE said that wing for HSE which has been on Obesity and its impact on many Chemicals have been intro- formed in many leading compa- the Performance of Employees. duced but their hazards are yet nies but it has yet to be created Mr. S.R.Krishnan, GM(HSSE),

60 KaleidOscope January, 2017 SCOPE News

Mr. Ved Prakash, Chairman, SCOPE & CMD, MMTC, Dr. U.D. Choubey, DG, SCOPE and Dr. Avneesh Singh, DG, DGFASLI addressing the participants at the Workshop.

BPCL, deliberated on the Plant Hospital deliberated on that safety for contractor labor is “Contract Management System ‘Efficiency optimization through a major issue bothering corpo- – Learning from Incidents.” Dr. care of older workers in CPSEs.’ rates. Mr.U.K.Dikshit, Adviser R.K.Elangoval, DDG, DGFASLI Mr. Rahul Sharma, Sr. Manager (Programs), SCOPE, highlighted made presentation on “Legal (HSE), GAIL spoke on ‘Approach the Industry’s role both as an Perspectives of Construction for Occupational Safety & Health Economic and Social entity. Mr. Safety.” Ms. Linda Skaria, Head Management for contractor work- Arun Mittal, Head HSE, OVL HSE, NTPC deliberated on vari- ers.’ Dr. R. K. Pradhan, CMO, quoted the international best ous initiatives taken by NTPC GAIL dealt with the Occupational practices citing the examples of for achieving Excellence in Hazards associated with work British Petroleum and Chevron. Construction Safety. and ways & means of combat- Dr. Chandra Tripathi, Head OH, Dr. N.A.Siddiqui, Head HSE ing the adverse effect. Mr. S. K. GAIL mentioned that we should Dept., University of Petroleum Goyal, Sr. Manager(Safety), NFL be alert about the hazards of the & Energy Studies talked spoke about the Safety practices surroundings and be aware of about issues in Ambient Air at NFL, Panipat. HSE initiative in Procedure / Systems for effective Quality Monitoring and Health ONGC was presented by Mr. N. J. implementation. Dr. M.Ahmad, Sr. Consultant OH highlighted Impacts. Mr. B.B.Chakraborty, Vijay Prasad, DGM(Production), the role played by OSH network Sr. Consultant HSE deliberated ONGC. Ms. Shukla Mistry, for knowledge enhancement and on the theme: Transformational GM(PJ), IOCL spoke about experience sharing amongst in Leadership for Achieving Women Executives in construc- the CPSEs for achieving excel- Excellence in Safety. Dr. Chandra tion field and women employees lence in OSH. Tripathi, DGM (MS&OH), at large. CO, GAIL spoke about OH In the concluding session, Mr. The Program was sponsored by Experiences and Health Index B.B.Chakraborty said that excel- BPCL and its contribution was in GAIL. Dr. M. Ahmad, Sr. lence in OSH can be achieved highly appreciated. Mr. A. U. Consultant (OH) talked about by adopting good Management Ghatak, Program Coordinator OS&H at Workplace emphasiz- practices and imbibing proposed the Vote of Thanks. The ing on Gender Disparity within Leadership qualities. Currently programme was attended by a Gender Equality. Dr. T. Pachal, more emphasis is being given for large number of OSH profession- AGM(OH), SAIL’s Bokaro Steel management aspects. He added als in Public Sector Enterprises.

Kaleidoscope January, 2017 61 SCOPE News SCOPE Program on ‘GST All You Wanted to Know’

COPE and KGS Advisors jointly organized a program on “GST All You Wanted to S nd Know” on 22 December 2016 at SCOPE Convention Centre, New Delhi. Dr. U. D. Choubey, DG, SCOPE, Mr. K. G. Somani, FCA Managing Partner, KG Somani & Co., Mr. R. P. Tak, FCA, Partner K. G. Somani & Co ad- dressed the participants in the inaugural session A large number Dr. U. D. Choubey, DG, SCOPE addressing the program on GST. On dais of Finance Executives from PSEs (L-R): Mr. R. P. Tak, FCA, Partner K. G. Somani & Co., Mr. K. G. Somani, attended the Seminar FCA, Managing Partner, KG Somani & Co., and Ms. Tripti Shinghal, FCA, CEO and Managing Director KGS LLP. Dr. U. D. Choubey, DG, SCOPE seventeen taxes under one tax under the GST. while addressing the Seminar, and would be a game changer, he pointed out that control of capital The third session was again taken commented. in the hands of sovereign power by CA S. K. Loonker on impact is the best option which will help Ms. Tripti Shinghal, FCA, CEO of GST on the manufacturing, and Managing Director KGS envisage a welfare state and tax trading and service sector. How LLP, proposed the vote of thanks reforms such as the GST will go the contracts shall cost and how to all the dignitaries on the dais, long way ensuring transparency it was going the effect the infra- speakers, participants and the and further improvements in the structure sector he clarified. organisors. tax administration and tax com- The last session was through a pliances more payee friendly The The inaugural session was fol- panel discussion comprising of current GST will subsume a num- lowed by four technical sessions Mr. G. Somani, Mr. R. P. Tak, CA on four different topics on GST. ber of indirect Taxes and will en- S. K. Loonker, Garima Sharma, sure better tax compliance. The first technical session was CA Puneet Mehra and Ms Trpti addressed by CA S. K. Loonker, Mr. G. Somani, FCA. while speak- Shinghal CEO and Managing Consultant KGS Advisors LLP, ing on the program perspective Director KGS LLP wherein, lot who focused on provisional as- went through the entire evolu- of discussions and interaction on pects of GST at length and the GST were took place. tion / history of GST, sharing his present and proposed Indirect perspective on indirect taxes. He Taxes Structure with regard Mr. B V K K Rao, Advisor further summed up how GST to SGST, CGST and IGST with (Finance), SCOPE was the pro- has reached this stage over these illustrations. gram Facilitator and Ms S. B. years of journey. Mathur Executive Secretary, The second technical session SCOPE was program coordinator. Mr. R. P. Tak, FCA, said that GST was taken by Advocate Garima would have far reaching effects Sharma, Director - KGS Advisors CMA Saqib Mehdi, Senior on the economy. It is a destination LLP and CA Puneet Mehra on Manager (Finance) SCOPE an- based tax and one of the greatest provisional aspects of GST who chored the event and gave the fiscal reforms in the history. It dealt with various issues relating vote of thanks at the conclusion is likely to subsume as many as to penal provisions and tax credit of the Program.

62 KaleidOscope January, 2017 SCOPE News SCOPE Programme on “Internal Financial Controls and Its Benefits”

ndian regulations have been modified to reflect the devel- Iopments in the Western world. Introduction of Internal Financial Controls (IFC) in the Companies Act 2013, reflect the continuation of this trend. According to the Companies Act 2013 In view of the great importance attached to ‘Internal Financial Controls‘ under various pro- On the dais (L-R): CA Parveen Kumar, Partner and National Head, Assurance visions of the Companies Act Division, ASA Associates, Dr. U. D. Choubey, DG, SCOPE, CA Prafulla Premsukh 2013, it becomes necessary Chahajed, Chairman, Committee on Public Finance & Government Accounting, for Board of Directors (espe- ICAI and Mr. P.M. Chandriah, MD, Bengal Chemicals Pharmaceuticals Ltd. during the inaugural session of the program. cially the Audit Committee and Independent Directors) and limelight after Enron fiasco when Internal Audit, Protiviti ( Gurgaon Sarbans Oxley Act came into play NCR) India Office, CA Amarjit Senior Management Personnel in America. The focus was on fix- Chopra, Former President to get acquainted with respect ing responsibility and creating of the Institute of Chartered to their enhanced responsibili- documentation leading to Higher Accountants of India, CA Anil ties regarding IFC. SCOPE or- Board Responsibilities. In India, Bhandari, Central Council ganized a two day program on especially Public sector compa- Member and Vice-Chairman “Internal Financial Controls and nies, we have best internal con- Internal Audit Standards Board, Its Benefits” in academic col- trol mechanisms. Every aspect CA Mutrtuza Kachwala currently, laboration with the Institute of will have maker, checker and dif- Managing Director with Protiviti Chartered Accountants of India ferent people will be involved in and CA Arun Garg, former (Committee on Public Finance decision making and approvals. Executive Director, Indian Oil & Government Accounting) on Mr. P.M. Chandriah, Managing Limited constituted the distin- 17th & 18th November, 2016 Director, Bengal Chemicals guished faculty in the program. at SCOPE Convention Centre, Pharmaceuticals Limited and The participants in the program, New Delhi. Dr U. D. Choubey CA Prafulla Premsukh Chahajed, which included Directors ( Director General SCOPE in his Chairman, Committee on Finance) and Executive Directors welcome address during the in- Public Finance & Government ( Finance) appreciated the content augural session of the program, Accounting, Institute of Charte- and presentations made. said the coming into effect of red Accountants of India, were the Companies Act 2013, has in Mr. B.V.K.K. Rao, Advisor the other dignitaries who ad- (Finance), SCOPE and Dr. Nikhil many ways raised the bar for dressed the participants in the Saket, Secretary, Committee on Corporate Governance. Indian inaugural session . This was fol- Public Finance and Government regulations have been modified lowed by three technical sessions Accounting, Institute of to reflect the developments in the on the first day and another three Chartered Accountants of India Western world. Introduction of on the second day. were the program Coordinators. Internal Financial Controls (IFC) in the Companies Act 2013, reflect CA Parveen Kumar, Partner and CMA Saqib Mehdi, Senior the continuation of this trend. He National Head of Assurance Manager ( Finance) SCOPE, pro- said that this concept came into Division ASA Associates, CA posed vote of thanks at the con- Jai Bhushan Associate Director, clusion of the two day program.

Kaleidoscope January, 2017 63 SCOPE News

Conference Facilities at SCOPE Convention Centre

The centrally air-conditioned SCOPE Convention Centre at SCOPE Complex, Lodhi Road, New Delhi provides excellent conference facilities to PSEs, Govt. Departments, Autonomous Bodies, Institutions/NGOs etc. The Auditorium and other Conference Halls are equipped with projector and screen facilities, sound & light control room with recording & P.A. facility, etc. Details of the capacity of the Auditorium and other Halls, which are available on nominal tariff are given below.

Auditorium The chamber having capacity of 92 persons (86 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on dias, tables & podium. Bhabha Chamber

The Auditorium having capacity of 310 persons (300 Chairs + 10 Nos. Chairs at stage) capacity equipped with mikes on dias and podium on stage. Mirza Ghalib Chamber

The chamber having capacity of 44 persons (24 Nos. Chairs on round table and 20 Nos. Chairs on sides) equipped with mikes on dias, tables & podium.

Fazal Chamber

The chamber having capacity of 108 persons (102 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on table, dias and podium. Tagore Chamber

The chamber having capacity of 25 persons (15 Nos. Chairs on round table and 10 Nos. Chairs on sides) capacity with board room type sitting arrangement equipped with mikes.

64 KaleidOscope January, 2017 SCOPE News

Business Centre Annexe II

The Business Centre having capacity of 7 persons The Annexe-II having capacity of 25 Persons. equipped with multi point Video Conferencing System (1+3), at three locations at a time for National Tansen Chamber at UB & International both. Banquet Hall

The Tansen Chamber having capacity of 50 persons having stage and podium. The banquet hall having capacity of 500 Persons for the purpose of lunch & dinner. Sitting arrangement Amir Khusro Chamber at UB could be done for 90 persons. Annexe I

The Amir Khusro Chamber having capacity of 50 The Annexe-I having capacity of 25 Persons. persons having facility of stage and podium.

For Booking & Tariff details please contact Mr. M. L. Maurya, GM (Tech.) Mr. Nitin Kulshrastha, Asst. Manager, Engineering (Elect.) Mobile: 9313375238 Mobile: 9313989067 • Email: [email protected] STANDING CONFERENCE OF PUBLIC ENTERPRISES 1st Floor, Core No. 8, SCOPE Complex, Lodhi Road, New Delhi - 110003 Phone: 011-24311747, 011-24360101 • Fax: 011-24361371

Kaleidoscope January, 2017 65 SCOPE News

Conference Facilities at SCOPE Minar Convention Centre SCOPE Minar, an architecturally conceived in the form of two high rise curvilinear tower blocks sitting on a four storey circular Podium Block, is strategically located in Laxmi Nagar District Centre, Delhi -110092 and housing around 40 PSEs of repute. It is one of the known buildings of East Delhi. It has a very size Reception Foyer giving ambience look inside the building. There is a green environment all around the SCOPE Minar with large size planters all around. The building is also having state of art Convention Centre, comprising four halls i.e.

Convention Hall Meeting Hall

A large sized Convention hall having sitting capac- Meeting hall having “U” shaped table, with a meet- ity of 300 delegates. Various seminars, training pro- ing capacity of 65 delegates.Most widely used for grammes, presentations, get to gather etc. are con- small size meetings and training programmes, ducted in Convention Hall. It provides ambient and group discussion, power point presentations etc. peaceful environment for the programmes. SCOPE Academy of Public Sector VIP Lounge Enterprises

VIP Lounge having sitting capacity of 60 delegates. SCOPE Academy of Public Sector Enterprises The executives and higher level officers, Directors, (APSE) conducts induction level programmes for CMDs can use it as waiting lounge also. PSEs executives. It has three training halls, one with capacity of 40 persons and two halls with ca- pacity of 30 persons each for training purpose. There is a wide space for vehicle parking that cater for a capacity of 700 cars, including the newly built good quality Banquet Hall wherein 300 delegates can comfortably dine at a time, makes it special to deliver an all-round conducive meeting environment .

For Booking & Tariff details please contact Mr. M. L. Maurya, GM (Tech.) (M) 9313375238 and Mr. Shubh Ratna, DCE(C), SCOPE Minar (M) 9873398242, (O) 011-22458176, 22458178 • Email: [email protected] • [email protected]

66 KaleidOscope January, 2017 Awards & Accolades to PSEs

REIL honored by Rajasthan Energy Conservation Award - 2016 Rajasthan Electronics and Instruments Limited was honored with First “Rajasthan Energy Conservation Award- 2016” during the award distribution cer- emony held, on the occasion of National Energy Conservation Day, at Indralok Auditorium, Jaipur. Mr. Sanjay Malhotra, Principal Secretary, Energy Department, Government of Rajasthan present- ed the award in the presence of Mr. B. K. Dosi, Mr. Rakesh Misri, ED, Corporate Strategy & Planning and Business Development and Ms. Sonal Desai, ED, Finance Managing Director, RREC, Mr. A. K. Jain, Managing (Refineries), HPCL receiving the award. Director, REIL and Mr. N. K. Kothari, Managing Director, RUVNL. (Refineries), Ms. Sonal Desai. Hosted by S&P Global Platts, the leading independent provider of- infor mation and benchmark prices for the commodities and energy markets, the annual event honours or- ganizations and individuals in the energy industry dedicated to achieving excellence.

KAPL awarded State Export Excellence as Best Manufacturer Export Award KAPL was awarded State Export Excellence Award for the year 2014-15 in the category “Best Mr. Sanjay Malhotra, Principal Secretary, Energy Manufacturer Export Award - Medium/ Large” Department, Government of Rajasthan presenting the Drugs & Pharmaceuticals by Government of Rajasthan Energy Conservation Award to REIL. Karnataka. The award function was held at

REIL was given this award by Rajasthan Renewable Energy Corporation Limited, in Small Scale Industry-General Category, for its efficient energy management practices.

HPCL wins “Platts Global Energy Award 2016” HPCL won the “Platts Global Energy Award 2016” for Corporate Social Responsibility. In a ceremony held at New York recently the award was received by ED,Corporate, Strategy & Planning and Business Mr. Jagdeesh C. Hiremath, Company Secretary & GM, KAPL Development, Mr. Rakesh Misri and ED,Finance receiving the award from Mr. Siddaramaiah, CM, Karnataka.

Kaleidoscope January, 2017 67 68 KaleidOscope January, 2017 Bangalore. The award was received by Mr. Mr. Moyukh Bhaduri, CMD, Hindustan Steelworks Jagadeesh C. Hiremath, Company Secretary & Construction Limited (HSCL) was conferred with General Manager - Administration, KAPL. the “International Leadership Innovation Excellence Award” by the Institute of Economic Studies (IES), at Bangalore, in presence of Mr. Basavaraja Horate, IREDA CMD gets Ex-Minister for Education, Mr. Rajashekaran, CBIP Award 2017 Former Minister of State for Planning along with other senior officials. HSCL was awarded with the Mr. K. S. Popli, CMD, Indian Renewable Energy Gold Medal during the occasion. The awards were Development Agency Ltd. was conferred with ‘CBIP collected by Mr. Satyajit Kar, Head (Project) / HSCL, Karnataka.

MCL wins Skoch Award Mahanadi Coalfields Limited (MCL) received the “SKOCH BLUE ECONOMY AWARD 2016” at the 46th Skoch Summit held at New Delhi recently. Besides, the flagship Coal India subsidiary operating in state of Odisha won two ‘Skoch Order of Merit’ for“CSR Initiatives of MCL” and “Initiative of Eco-friendly Mining with Surface Miner”.

Minister of State for Water Resources, River Development & Ganga Rejuvenation Dr. Sanjeev Kumar Balyan presenting the ‘CBIP Award 2017’ to Mr. K. S. Popli, CMD, IREDA.

Award 2017’ for his outstanding contribution in Development of Renewable Energy Sector. Minister of State for Water Resources, River Development & Ganga Rejuvenation, Dr. Sanjeev Kumar Balyan presented the CBIP Award to Mr. K. S. Popli, on the occasion of CBIP Day Celebrations 2017 recently at SCOPE Convention Centre, New Delhi. Dr. Shambhu Jha, Sr. Manager (Mining), presenting the award to the CMD in the presence of Mr L. N. Mishra, Director International Leadership (Personnel) and Mr O. P. Singh, Director (Technical/P&P). Innovation Excellence Award presented to HSCL MCL’s CMD, Mr A. K. Jha congratulated all mem- bers of the company for achieving distinction in fields of CSR and environment-friendly opera- tions. Dr. Shambhu Jha, Sr. Manager (Mining), pre- sented awards to the CMD in the presence of Mr L. N. Mishra, Director (Personnel) and Mr O. P. Singh, Director (Technical/P&P). A large number of government organisations had participated in the SKOCH Awards process.

CEO, Petronet LNG Ltd.

Mr. Satyajit Kar, Head (Project), HSCL (Karnataka) receiving honoured by Indian Army the award on behalf of Mr. Moyukh Bhaduri, CMD, HSCL. Indian Army honoured and facilitated Mr. Prabhat

KaleidoKaleidoscope January, 2017 69 70 KaleidOscope January, 2017 Performer - Project Exports (Large Enterprise)’. The award was received by Mr. Atul Sobti, CMD, BHEL from Mr. Suresh Prabhu, Union Minister of Railways. Instituted by EEPC, the award is given annually to Top Exporters for excellence in physical exports. Significantly, BHEL has been winning this award consecutively for last 26 years.

Oil India Limited bags the Jury choice award for MD & CEO Mr. Prabhat Singh, PLL being facilitated by the Strategic Investment Indian Army. Oil India Limited (OIL) won the Governance Now Singh MD & CEO of Petronet LNG at Baramullah, PSU Award-2016 under the category of Jury Choice Kashmir for supporting the cause of empowering for Strategic Investment at the award ceremony the youth of the Kashmir valley towards Nation held in New Delhi, recently. Building. Mr. Prabhat Singh while interacting with senior officials of Dagger Division (Indian Army) and Students of Petronet Kashmir Super-40 ap- preciated the potential of the Kashmiri youth and reiterated his commitment of ensuring their bright future and employment opportunities. PLL has collaborated with Indian Army and CSRL for this programme which will provide an oppor- tunity to the students of J&K, aiming for admis- sion in reputed Engineering Institution in the years to come. Mr. S. K. Shahi , Director CSRL and Mr. Manoj Pawa, PLL Vice President (CA&BD) was also present on this occasion. Mr. Harish Madhav, General Manager (Finance & Accounts), OIL receiving the Award from Mr. Ram Vilas Paswan, Minister of Consumer Affairs, Food and Public Distribution BHEL wins the EEPC Export and Mr. Babul Supriyo, MoS, Heavy Industries and Public Enterprises in the presence of Jitendra Kapoor, actor and Excellence Award other dignitaries. BHEL won the EEPC INDIA National Award for Export Excellence for the year 2014-15 as ‘Star The award was presented by Mr. Ram Vilas Paswan, Minister of Consumer Affairs, Food and Public Distribution and Mr. Babul Supriyo, Minister of State for Heavy Industries and Public Enterprises to Mr. Harish Madhav, General Manager (Finance & Accounts), OIL in the presence of Bollywood actor Mr. Jitendra Kapoor and other dignitaries.

DGM (PR), PFC Receives ‘Best UT Nodal Official’ Award Mr. Piyush Goyal, Union Minister of State (I/C) for Mr. Atul Sobti, CMD, BHEL receiving the award from Mr. Power, Coal, New & Renewable Energy and Mines Suresh Prabhu, Union Minister of Railways. and Mr. P. K. Pujari, Secretary (Power) gave the First

Kaleidoscope January, 2017 71 72 KaleidOscope January, 2017 The company was selected based on strategic per- formance evaluation and Profit after tax/ Sales and excellent performance in EBIDTA.

NRL wins two awards for Asset Utilization & Strategic Performance NRL bagged two awards under the ‘Asset Utilization’ and ‘Strategic Performance’ categories at the 4th edi- tion of Governance Now PSU Awards 2016. Mr. S.S. Rao, DGM (PR), PFC receiving the award from Mr. Piyush Goyal, MoS (I/C) for Power, Coal, New & Renewable Energy and Mines and Mr. P. K. Pujari, Secretary, Power.

Prize in “Union Territories Nodal Official” to Mr. S. S. Rao, DGM (PR), PFC. This Award was given in appreciation of the achievement in Painting Competition on Energy Conservation by school children in Union territories.

NMDC wins Strategic Director Finance NRL Mr. S. K. Barua (left) receiving the Performance Award Governance Now Award from Mr. Ram Vilas Paswan, Union NMDC Limited won Governance Now PSU Award Minister of Consumer Affairs, Food and Public Distribution. 2016 for strategic performance under financial The awards were presented to NRL Director (Finance) Mr. S. K. Barua by Mr. Ram Vilas Paswan, Union Minister of Consumer Affairs, Food and Public Distribution in the presence of Mr. Jeetendra Kapoor, at New Delhi recently.

BEML CMD conferred with Fellowship Award Mr. Deepak Kumar Hota, CMD, BEML was con- ferred with CEPM Fellowship Award-2016 at the

Mr. Sandeep Tula, Director (Personnel), NMDC receving the award from Mr. Ram Vilas Paswan, Union Minister of Consumer Affairs, Food & Public Distribution. category. The Award was received by Mr. Sandeep Tula, Director (Personnel) from Mr. Ram Vilas Paswan, Union Minister of Consumer Affairs, Food and Public Distribution in a program organized at New Delhi. Mr. Jitendra Kapoor, Actor and Ms. Usha Singh, GM (BD & CP), NMDC Ltd. were also Mr. Amitabh Kant, CEO, NITI Aayog presenting the present on this occasion. Fellowship Award to Mr. Deepak Kumar Hota, CMD, BEML.

KaleidoKaleidoscope January, 2017 73 74 KaleidOscope January, 2017 24th Global Symposium organised by Centre for Excellence in Project Management. At the func- tion held at Delhi, the Award was presented to Mr. Hota by Mr. Amitabh Kant, CEO, NITI Aayog. The Award was bestowed on Mr. Hota in recognition of his commitment in transforming and driving organizational capabilities through human centric approach.

BEML bags Export Award BEML won the STAR PERFORMER AWARD in the Export category for the year 2014-15. Ms. Kalpana Kaul, ED (HR) and Mr. Ajoy Choudhary, GM (Fin.) REC received the award from Mr. Ram Vilas Paswan, Union Minister for Consumer Affairs Food & Public distribution.

Enterprises, Mr. Jeetendra Kapoor, Actor and dig- nitaries from several Public Sector Organizations.

REC wins CBIP Award for Best Power Financing Company REC was conferred with “CBIP Award for Best Power Financing Company” recently at CBIP Day Celebrations 2017 organized by Central Board of Mr. Suresh Prabhu, Union Minister for Railways presenting Irrigation & Power (CBIP) at SCOPE Convention the Star Performer Award to Mr. Deepak Kumar Hota, Centre, New Delhi. The award was received by CMD,BEML. Mr. Sanjeev Kumar Gupta, Director (Technical),

At a function held at Delhi, Mr. Deepak Kumar Hota, CMD received the Award on behalf of the Company from Mr. Suresh Prabhu, Minister of Railways. Ms. Rita A Teaotia, Secretary (Commerce), Govt. of India was also present on the occasion. The event was organised by EEPC India (Formerly Engineering Exports Promotion Council).

REC bags Two PSU Awards Rural Electrification Corporation (REC) won two awards in the areas of ‘Asset Utilization’ and ‘Consistent Growth & Adaptation’ at the 4th Mr. Sanjeev Kumar Gupta, Director (Technical), REC Governance Now PSU Awards 2016. The award receiving the Award from Dr. Sanjeev Kumar Balyan, was presented by Mr. Ram Villas Paswan, Union Minister, of Water Resources, River Development & Ganga Minister for Consumer Affairs, Food and Public Rejuvenation. Distribution to Executive Director (HR) Ms. Kalpana Kaul and General Manager (Finance) Mr. REC from Dr. Sanjeev Kumar Balyan, Minister of Ajoy Choudhary from REC. Water Resources, River Development & Ganga The award function witnessed the presence of Mr. Rejuvenation. The ceremony was attended by vari- Babul Supriyo, MoS. Heavy Industries & Public ous dignitaries of Public and Private Sector.

KaleidoKaleidoscope January, 2017 75 76 KaleidOscope January, 2017 ITDC bags the Award for Best PSU India Tourism Development Corporation (ITDC) was bestowed with “Best PSU award for CSR - CSR Initiative at Qutab Minar Initiative” in Miniratna Non Financial Category at the 4th Edition of Governance Now PSU Awards 2016. The award was presented to ITDC in New Delhi, where Mr. Umang Narula, CMD, ITDC and Mr. Piyush Tiwari, Director Commercial & Marketing, ITDC received the award from Mr. Ram Vilas Paswan, Union Minister of Food and Public Distribution and actor Jeetendra. ITDC adopted Qutub Minar as a part of its CSR initiative under the aegis of Government of India’s Swachh Bharat Abhiyan and organizes regular cleanliness drives at the monument’s premises. Mr. Umang Narula, CMD, ITDC and Mr. Piyush Tiwari, Director (Commercial) receiving the award from Mr. Ram Vilas Paswan, Union Minister of Consumer Affairs.

CSL completes construction of 20 Fast Patrol Vessel

ochin Shipyard Limited completed construction of C20 Fast Patrol Vessel series for the Indian Coast Guard. CSL was awarded the work of constructing 20 Fast Patrol Vessels for the Indian Coast Guard. CSL delivered the first vessel on th 25 September 2013 and subsequent- ly delivered vessels in about two months interval. CSL started de- livering vessels ahead of sched- ule from the 13th vessel onwards. ICGS AYUSH, the 20th Fast Patrol Vessel, the last in the series (CSL Mr. Suresh Babu N V, Director (Operations), CSL and Commanding Officer Yard No BY 520) was delivered (Designate) of the vessel Commandant (JG) Asheesh Sharma exchanging the recently, three months ahead of protocol of delivery and acceptance. schedule. The ceremony of first reading of D448 of the ship was CSL and Commanding Officer Managing Director, DIG, Arun held recently at the CSL. The pro- (Designate) of the vessel and Vastav, PD (Mat), CGHQ, DIG tocol of delivery and acceptance Commandant (JG) Asheesh G Devanand, CGRPS (KOC) and was signed between Mr. Suresh Sharma, in the presence of Mr. other senior officers of both CSL Babu N V, Director (Operations), Madhu S Nair, Chairman and and Coast Guard.

Kaleidoscope January, 2017 77 Prime Minister presents cheque to CMD, BHEL

rime Minister, Mr. Narendra Modi, pre- Office and all NCR-based divisions participated in sented a cheque of the highest amount of the celebrations that included a cultural program PRs.1.79 Cr. to Mr. Atul Sobti, CMD, BHEL, produced in-house by BHEL employees. at the Kaushal Mahotsava in Kanpur, as a mark of appreciation for BHEL’s active participation by Union Minister of Heavy Industries engaging a large number of apprentices across and Public Enterprises, Mr. Anant Geete the country under the National Apprenticeship visits BHEL, Hyderabad Promotion Scheme (NAPS), representing the or- The Union Minister of Heavy Industries and Public ganization’s contribution to the ‘Skill India’ initia- Enterprises, Mr. Anant Geete visited Bharat Heavy tive of the Prime Minister. The Ministry of Skill Electricals Limited (BHEL)’s manufacturing unit in Development and Entrepreneurship invited the Hyderabad. Mr. Atul Sobti, CMD, BHEL, welcomed heads of top organisations imparting trade appren- the Minister and escorted him around the plant. Mr. ticeship training to receive cheques from Prime Girish Shankar, Secretary, Department of Heavy Minister as a partial reimbursement of the stipend Industry (DHI) and senior officials of BHEL and paid and as a token of appreciation for their excel- DHI were also present on the occasion lent work in this area.

Mr. Anant Geete, Union Minister, HI&PE at the BHEL’s Prime Minister, Mr. Narendra Modi presenting the cheque manufacturing unit at Hyderabad. to Mr. Atul Sobti, CMD, BHEL. BHEL commissions one more 600 MW BHEL Day 2017 Celebrated with fervour Thermal Unit in Telangana BHEL Day 2017 was celebrated with great fervour Bharat Heavy Electricals Limited (BHEL) has suc- in New Delhi recently. Mr.Anant Geete, Union cessfully commissioned another 600 MW coal-based Minister of Heavy Industries & Public Enterprises thermal power plant in the state of Telangana. The graced the occasion as the Chief Guest and Mr Babul unit has been commissioned at the 2 x 600 MW Supriyo, Minister of State for Heavy Industries & Singareni Thermal Power Project (TPP) located in Public Enterprises was the Guest of Honour. Adilabad district in Telangana. The project has been Mr. Girish Shankar, Secretary, Department of Heavy developed by Singareni Collieries Company Limited Industry; Mr. Atul Sobti, CMD, BHEL; Directors (SCCL), India’s second largest coal mining company. on the Board of BHEL, and senior officials of the This is the second 600 MW unit commissioned by Department of Heavy Industry were also present BHEL at Singareni TPP. The first unit of the project on the occasion. Employees of BHEL’s Corporate was earlier commissioned in March, 2016.

78 KaleidOscope January, 2017 PM Inaugurates Trade Facilitation Centre at Varanasi Implemented by NBCC

rime Minister Mr. Narendra Modi, inaugurated the first phase of Trade Facilitation Centre & Crafts PMuseum at Varanasi (U.P.) recently. Implemented by NBCC, the centre is a vision project of the Government of India to promote the handloom, handicraft industry and silk products of Varanasi and neighbouring areas. Dr. Mahendra Nath Pandey, MoS (HRD), Mr. Brahma Shanker Tripathy, Minister of Khadi & Village Industry, Govt of Uttar Pradesh, Mr. Ram Charitra Nishad, MP, Ms. Rashmi Verma, Secretary, Ministry of Textiles and Dr. Anoop Kumar Mittal, CMD, Prime Minister, Mr. Narendra Modi addressing the NBCC were among the guests who graced the occasion. Trade Facilitation Centre at Varanasi. New Civil Air Terminal at Bathinda Airport

Ashwani Lohani, CMD, Air India and other dignitaries. Speaking on the occasion, Union Minister of Civil Aviation Mr. Raju said that the new terminal and the flight connectivity will not only boost passenger travel but also be a multiplier for the overall economic growth of the region. These new facilities are a fitting tribute to the indomitable Punjabi spirit, he added. Mr. P. Ashok Gajapathi Raju, Union Minister of Civil Aviation with Ms. Harsimrat The New Civil Air Terminal is Kaur Badal, Union Minister of Food Processing Industries, Sardar Sukhbir Singh spread in the area of 1200 sq. Badal, Deputy Chief Minister, Punjab, Mr. Jayant Sinha, MoS, Civil Aviation, Mr. mtrs. The terminal has been Vijay Sampla, MoS, Social Justice and Empowerment, Dr. Guruprasad Mohapatra, Chairman, AAI, and Mr. Ashwani Lohani, CMD, Air India at the inauguration of constructed at a total cost of Rs. new civil air terminal at Bhatinda Airport. 25 cr. The Terminal is equipped to handle 100 passengers (50 Departure + 50 Arrival) with he New Civil Air Terminal Industries, Sardar Sukhbir Singh at Bathinda Airport was Badal, Deputy Chief Minister of modern passenger facilities such dedicated to the Nation re- Punjab, Mr. Jayant Sinha, Union as two Check-in-counters, one T Security Check X-Ray Machine, cently by Mr. P. Ashok Gajapathi Minister of State for Civil Aviation, Raju, Union Minister of Civil Mr. Vijay Sampla, Union Minister one Arrival Baggage Conveyor Aviation in the presence of Ms. of State for Social Justice and Belt, one Reserved VIP Lounge Harsimrat Kaur Badal, Union Empowerment, Dr. Guruprasad with Car Parking and Apron for Minister of Food Processing Mohapatra, Chairman, AAI, Mr. two ATR-72-600 type aircraft.

Kaleidoscope January, 2017 79 Steel Secretary, inaugurates 5 MW Solar Power Plant

r. Aruna Sharma, Secretary, Ministry of DSteel inaugurated the 5 MW Solar Plant installed by RINL at a cost of Rs. 33 cr. in the presence of Mr. P Madhusudan, CMD, RINL, Ms. Urvilla Khati, Joint Secretary, Ministry of Steel and Directors of RINL recently. RINL has joined other major corporates in harness- ing solar power with this 5 MW Ground Waste Solar Power Dr Aruna Sharma, Steel Secretary inaugurating the 5 MW Solar Plant in VSP (To Plant in its premises. Dr. Aruna her right) Mr. P Madhusudan, CMD,RINL, Ms. Urvilla Khati, Joint Secretary (Steel), Sharma commended RINL RINL Directors and union leaders are seen. management for foraying into significance in recent times with Director (Operations), Mr. P. Solar Energy in tune with the the growing concern for the coun- Raychaudhury, Director (Comm- government thrust to tap renew- try’s energy security. ercial), Mr. B. Siddhartha Kumar, able energy sources. She said IFS, CVO were present on the oc- that the role of renewable energy Mr. P. C. Mohapatra, Director casion. Later, Dr. Aruna Sharma, has been assuming increasing (Projects), Mr. D. N. Rao, Smt Urvilla Khati visited new pro- duction units like Blast Furnace-3, Steel Melt Shop-2, Rolling Mills, Captive Power Plant-2 etc. She also visited “Steel Museum”, lo- cated in the Technical Training Institute. Ms. Aruna Sharma reviewed the performance of the Company in which Mr. P Madhusudan, CMD, CVO and Directors participated. Later, she interacted with the representatives of Steel Executive Dr Aruna Sharma, Steel Secretary, Ms. Urvilla Khati, Joint Secretary, Steel, Mr. P Association, trade unions. SC&ST Madhusudan, CMD, RINL with women employees at Coke Oven battery. Association and WIPS.

80 KaleidOscope January, 2017 THDCIL & Ministry of Coal: Allotment Agreement for Amelia Coal Mine

r. D. V. Singh, CMD, 393.59 million tonnes. Rated ca- THDCIL and Mr. pacity of the Amelia Coal mine MVivek Bhardwaj, Joint is 8.4 million tonnes per annum Secretary, Ministry of Coal, (MTPA) of Coal Production. signed the Allotment Agreement The Khurja STPP shall facilitate for Amelia Coal Mine recently. overall development of the area, Mr. U. C. Kannaujia, GM(SP) and create job opportunities for the Mr. Mukul Sharma, Sr. Manager local people and improve the (Thermal Design), THDC NCR deficit power scenario of Uttar Office Kaushambi were also pres- Pradesh Besides that, all major ent on the occasion with senior clearances viz. Land availabil- officials of THDCIL and Ministry ity, Water commitment, Airport Mr. D.V. Singh, CMD, THDCIL and Mr. Vivek Bhardwaj, Joint Secreatry, of Coal. Authority Clearance, Re-routing Ministry of Coal exchanging the MoU The Ministry of Coal in August of NH-91, Railway Siding, etc. for documents. 2016 allotted Amelia Coal Mine the Project are already in place. under Rule 11(10) of the Coal THDCIL is one of the premier THDCIL and Mr. K. P. Jangid, Mines (Special Provisions) Rules, hydro power generators in the General Manager (Commerce) 2014 in public interest to THDCIL country with installed capacity Mr. A. N. Khambhatta, Superin- in order to meet the requirement of 1450 MW with commissioning tending Engineer (Commercial), of its Khurja STPP(2X660 MW). of Tehri Dam & HPP (1000MW), Mr. VT Patel, Deputy Engineer The Amelia Coal Mine located Koteshwar HEP (400MW) and ( C o m m e r c i a l ) , f r o m t h e in Singrauli District of Madhya 50MW Wind Power Project at GUVNL were also present on this Pradesh, is spread on around Patan Gujarat to its credit and occasion. 1619.10 hectare of lease land is bestowed with ‘Mini Ratna’ THDCIL forayed into wind pow- excluding 240.70 hectare land Category –I & Schedule ‘A’ Status. er as diversification measure in outside lease area. The total June 2016 by successful commis- Geological Coal reserve shall be THDCIL inks Power sioning of 50 MW Wind Power Purchase Agreement (PPA) Project in Patan, Gujarat, after with GUVNL installing Tehri HPP of 1000 MW THDC India Limited (THDCIL) and Koteshwar HEP of 400 MW entered into another Power in the Garhwal Himalayas. Purchase Agreement (PPA) for THDCIL, has further expanded a wind power project of 63 MW in Gujarat with its 63 MW wind with Gujarat Urja Vikas Nigam power project in Dwarka district Limited (GUVNL) at Vadodara taking the total Wind Capacity recently. The agreement was to 113 MW. THDCIL is shortly signed by Mr. Ajay Mathur, commencing generation from 30 General Manager (Commercial), Wind Turbine Generators (each on behalf of the THDCIL and Ms. of 2.1 MW) totalling 63 MW. This Sailaja Vachhrajani GM (IPP), on plant shall generate to approx. 135 Mr. Ajay Mathur, GM (commercial), behalf of the GUVNL. THDCIL and Ms. Sailaja Vachhrajani, Million Units (MUs) of electrical GM (IPP), GUVNL exchanging MoU Mr. Rajiv Dhall, DGM, SQ energy annually and strengthen documents. Ahmed, Company Secretary from the western grid.

Kaleidoscope January, 2017 81 NLCIL Observes National Energy Conservation Day -2016

efficiency, the organization has saved Rs. 6.5 Cr. worth diesel and saved 23 Crore Units of electricity consumption without effecting normal in production. He said Energy Conservation is the only way to avoid economic and eco- logical damage. Mr. P. Dharmalingam in his Key- note address, insisted on how as part of industrial revolution, humans have been adding more carbon dioxide to the atmosphere Mr. Subir Das, Director (Mines) NLCIL flagging off the rally organized by the than plants can take up. students of Kendriya Vidyalaya, Neyveli in commemoration of the National Energy Conservation Week. Also seen are, Mr. P. SelvaKumar, Director (Planning Functional Director Mr. P. Selva & Projects) Mr. P. Dharmalingam and Senior Officials. Kumar Director (Planning & Projects) informed that NLCIL management is going to in- LC India Limited ob- Chennai participated as Guest of troduce a new system called served the National honour. Mr. Subir Das, Director Dynamic Loading System in NEnergy Conservation (Mines) NLCIL, the Chief Guest Conveyors to reduce lot of energy Day as part of the National Energy in his inaugural address said input. After the programme Mr. Conservation Week -2016 celebra- NLCIL management is develop- Subir Das flagged off a rally of tions at the Lignite Hall, Neyveli, ing technologies for improving Kendriya Vidyalaya school chil- recently. Mr. P.Dharmalingam, efficiency and reducing costs. dren to create awareness among Director, Energy Management, Because of taking important public about the need of energy National Productive Council, and measures in increasing energy conservation.

Implementation of ILS CAT-III B at Jaipur & Lucknow Airports irports Authority of system at these airports has runway visual range (visibility India (AAI) has imple- made them equal to IGI Airport, on runway in the direction of Amented Instrument Lan- Delhi in terms of standards of landing) does not reduce below ding System (ILS) – Category - landing facilities for aircraft. 50 meters. III B at its Jaipur and Lucknow This system is capable of guid- The above work was comple- th Airports with effect from 8 Dece- ing the pilot of an arriving ted by AAI in less than two years’ mber, 2016. aircraft to land in low visibil- time with minimum disruption The implementation of above ity / foggy conditions until the to flights at these major airports.

82 KaleidOscope January, 2017 The improved domestic sales as well as expanding exports, with Union Steel Minister visits the latter recording a remarkable rise of around more than double during this period, contributed to SAIL Units at Ranchi the improved sales numbers. The company’s exports rise is in keep- ing pace with the SAIL’s focus to expand its global foot prints.

• SAIL posts 16 % growth in sales during April- December 2016

• Domestic sales along with exports contribute to sales growth

• 15 % growth recorded in Saleable steel pro- Steel Minister Mr. Birendra Singh inaugurating the Pelletization Laboratory. duction during April- December 2016. teel Minister Mr. Birendra product and process innovations. Singh visited SAIL Units The Engineering and Technology At the production front, SAIL pro- Sof Ranchi and urged them Unit at Ranchi CET apprised that duced 10.18 Million Tonnes (MT) to register global presence in they have implemented hitherto of saleable steel during Apr-Dec’16 terms of increasing exports of single largest package in the his- period, of which 1.18 MT alone SAIL steel by producing more tory of SAIL at Hot Strip Mill, came in December’16, registering and more special steel at opti- Rourkela. The challenge further a 15 percent growth in saleable mum cost. He also emphasised lied in continued interventions steel production over Apr-Dec’15. the need of presence as a world till production reached to capac- With enhanced performance from class Management Institution as ity levels. the modernized units, the techno- well as high Safety standards. After inauguration of the system, economic parameters also ex- Minister also inaugurated a pel- Steel Minister advised to utilize hibited improvement during the letisation plant at Research & mineral resources of low grade first nine months of FY 16-17 (BF Development Centre for Iron & iron ore and also expressed his productivity: 7 percent and Coke Steel (RDCIS), SAIL in Ranchi. views to make great use of this Rate: 3 percent improvement). On this occasion, Chairman, SAIL equipment to maximum level This is conforming to the compa- Mr. P.K.Singh, Director(Technical) for national interest. Apart from ny’s constant endeavors to attain Mr. Raman, Executive Director this equipment, operation of ball most effective utilization of all re- (RDCIS), Mr. B.N. Thakur, mill, disc palletizer, Blaine ap- sources as SAIL recognizes that its Executive Director(CET), Mr. P. paratus and cold compressive business activities have direct and Saidev, Executive Director(SSO), strength equipment has also been indirect impact on the society. The Mr. R.K. Tripathy, Executive witnessed. company realizes that water is a Director(MTI), Mrs. Kamakshi SAIL posts 16 percent vital resource and should be judi- Raman and other senior official growth in sales during ciously utilized. In this endeavor, of SAIL Ranchi Units were also April-December’16 SAIL is observing January 2017 as present. He appreciated the in- ‘Water Conservation Month’across SAIL posted a solid sales growth novations by SAIL R&D but of 16 percent during the April – all its Plants and Units with a tar- urged for intensive marketing December 2016 period over the get to reduce water consumption and thereby commercialization of corresponding period last year. by 25 percent.

Kaleidoscope January, 2017 83 NTPC and NALCO to form JV for Power Generation

the Make in India initiative bringing jobs and opportunities for the people of Odisha. Mr. Dharmendra Pradhan in his address said that mineral rich state of Odisha is now getting its due with many new industries being set up in the state. The two leading Central Public Sector Companies are synergizing their respective domain exper- tise to fuel the economic growth of India in general and state of Odisha, Joint Venture Agreement, Mr. Piyush Goyal, Minister of State (I/C) Power, Coal, NRE and Mines, Mr. Power Purchase Agreement etc. Dharmendra Pradhan, Minister Of State (I/C) Petroleum and Natural Gas, Mr. Tathagata Satpathy, Lok Sabha MP from Dhenkanal, Mr. Prafulla Kumar shall be fast tracked and be in Malik, Minister of Labour, Employees State Insurance, Steel and Mines, Govt. of place by the end of the current fi- Odisha, Mr. Gurdeep Singh, CMD, NTPC, Dr. T. K. Chand, CMD, NALCO and other nancial year dignitaries during the signing of MoU. NTPC capacity crosses 48K Mark- with first 800MW TPC Limited and Nat- The MoU was signed by Mr. B.K. Unit at Kudgi ional Aluminium Com- Thakur Director (HR), NALCO With commissioning of 800 MW Npany Limited (NALCO) and Mr. K. Biswal Director unit at Kudgi Super Thermal signed an Memorandum of (Finance), NTPC. The Joint Power Station in Karnataka , the Understanding (MoU) recently Venture Company shall establish total installed capacity of the larg- a 2400 MW (3X 800 MW ) coal in New Delhi in the presence est Power Utility of the country based power project at Gajmara, of Mr. Piyush Goyal, Minister NTPC has risen to 48028 MW. Dhenkanal in Odisha and sup- of State (I/C) Power, Coal, NRE This is the first 800 MW Unit and Mines, Mr. Dharmendra ply captive power for expan- commissioned by NTPC. Pradhan, Minister of State (I/C) sion plans of NALCO at Angul Company has 19 coal based, 7 Petroleum And Natural Gas, and also greenfield project at gas based, 9 solar PV, one Hydro Mr. Tathagata Satpathy, Lok Kamakhyanagar in Dhenkanal, and 9 Subsidiaries/ Joint Venture Sabha MP from Dhenkanal, Odisha. power stations. Mr. Prafulla Kumar Malik, Speaking on the occasion, Minister of Labour, Employees Mr. Piyush Goyal said in coming Company has capacity of over State Insurance Steel and Mines, days the demand for aluminium 23,000 MW under implementa- Govt. of Odisha, Mr. Gurdeep shall increase many folds in the tion at 23 locations across the Singh, CMD, NTPC, Dr. T. K. rapidly growing Indian econo- country including 4300 MW be- Chand, CMD, NALCO and other my the projects led by swadeshi ing undertaken by joint venture dignitaries. companies shall take forward and subsidiary companies.

84 KaleidOscope January, 2017 PM presents NAPS Cheque to HAL

suitable product under “Make in India” category for Regional Connectivity Scheme (RCS). “Our aim is to help the Government in its mission to provide affordable and sustainable air travel with access to various parts of India. As a proactive step in this direc- tion HAL board sanctioned Rs. 100 crores for two civil variants though there is no firm order. We see a big business opportunity in Prime Minister, Mr. Narendra Modi presenting a NAPS cheque to HAL CMD, Mr. T. this segment for next 10 years”, Suvarna Raju (second from right) at a function in Kanpur. he said. HAL has already started manufacturing two civil demon- he Prime Minister, Mr. for Skill Development and Entre- strator aircraft. Narendra Modi present- preneurship was present on the Ted a cheque to HAL for occasion. playing a constructive role un- der the Government’s National Union Minister inaugu- Apprenticeship Promotion Sche- rates Structural Assembly me (NAPS) at ‘Kaushal Ma- of HAL-Do-228 Civil hotsava’ program held in Kanpur Variant; First Aircraft to recently. Roll-Out in April 2017 Mr. T. Suvarna Raju, CMD, HAL The Minister of State for Civil received the cheque on behalf Aviation Mr. Jayant Sinha inau- of HAL. The NAPS proposes to gurated Structural Assembly of work pro-actively with the indus- HAL–Do-228 (Civil variant) at try to develop skilled manpower HAL’s Kanpur facility recently. Mr. T. Suvarna Raju, CMD, HAL for the country. As per the scheme, “We are keen to take forward our inaugurating a 3.5MW solar power project at HAL Airport Bengaluru. 25 percent of the prescribed sti- Regional Connectivity Scheme pend payable to an apprentice (RCS) and HAL has an important is reimbursed to the employers role to play in this”, he said. The HAL Airport First to Install directly by the Government of Minister pointed out that there is Single-Axis Solar Project India. Rupees 1500 per month a marker demand for at least 200 In a significant move to - har per apprentice is given by the such aircraft and the government ness solar energy, a 3.5MW solar Government of India to the em- would conclude the contract with power project was inaugurated ployers who engage apprentices. HAL once the first aircraft is by Mr. T. Suvarna Raju, CMD, HAL was appreciated for ac- rolled-out. Speaking on the occa- HAL at HAL airport Bangalore tive participation and engaging sion, Mr. T. Suvarna Raju, CMD, to coincide the HAL’s Foundation maximum numbers of appren- HAL said he expects the first air- Day. The project is spread over 23 tices under NAPS by the orga- craft to roll-out by April 2017. The acres with 12,985 solar modules nizations. The Prime Minister DO-228-201 upgraded version, a installed. The project complies e-launched various skill devel- 19 seater commuter aircraft cur- with domestic content require- opment projects during his visit rently being manufactured at ment (DCR) since the modules to Kanpur. Mr. Rajiv Pratap HAL Transport Aircraft Division used in this project are manufac- Rudy, Union Minister of State (TAD) Kanpur is the most tured in India.

Kaleidoscope January, 2017 85 CMD, KIOCL Inspects Blast Furnace Unit at Mangalore

has decided to restart the Blast Furnace Unit.

Sensitization workshop on Cashless Transaction WIPS, Mangalore wing arranged a sensitization workshop through KIOCL’s Banker Corporation Bank recently at Resource Centre, Mangalore for delivering talk on the modes of cashless transaction, the advantage of cashless transac- tions and assistances extended by the banks to enable all vendors/ Blast Furnace Unit at Mangalore. customers/ contractors/ labor- ers to adopt cashless methods of r. Malay Chatterjee, input materials, the financial per- payment and receipts. Contract CMD, KIOCL Ltd. formance will yield positive ben- laborers of Pellet Plant Unit and Malong with Mr. Subba efit for the Company. Therefore, Blast Furnace Unit participated in Rao, Director (Commercial) in- the Board of Directors of KIOCL the workshop. spected Blast Furnace Unit at Mangalore recently to review the progress on re-commissioning and resumption of production of its BFU which will go in for heat- ing before the FY 2016-17. The Blast Furnace Unit was com- missioned to produce 2.16 lakh tons per annum of foundry grade Pig Iron during Feb. 2001 and was shut down from August 2009 due to the market downtrend and non-availability of raw material. The improvement in the market conditions and availability of Sensitization workshop through KIOCL’s Banker Corporation Bank.

86 KaleidOscope January, 2017 NRL exports Wax to Nicaragua

fter touching four foreign shores, NRL Wax is now Aon its way to the Central American Nation of Nicaragua. The first export consignment con- taining 60 tonnes of Fully Refined Parrafin Wax(FRPW) was flagged off to Nicaragua recently from the premises of the Numaligarh Refinery Marketing Terminal by Director (Technical) NRL Mr. S. R. Medhi in presence of other NRL officials. The first consignment of NRL Wax to Nicaragua being flagged off Numaligarh Refinery Marketing Terminal by Director ( Technical) NRL Mr. S. R. Medhi. Earlier, NRL Wax has been export- ed to countries as far as Mexico, Kenya, Nepal and Bangladesh. Prime Minister of India Mr. NRL hosts BPCL financial synergy and profes- Narendra Modi dedicated NRL’s Group Refineries Finance sional network amongst the Wax Plant to the Nation recently Synergy Meet group companies. BPCL (Bharat at a public function in Dibrugarh, A 2 day BPCL Refineries’ Finance Petroleum Corporation Limited) Assam. The 50,000 Metric Tonnes Synergy Meet with the theme holds 61.65 % share in NRL (MT) Wax Plant commissioned ‘Together Towards Tomorrow’ (Numaligarh Refinery Limited) in March 2015 at a cost of Rs. 676 was held at Kaziranga recently. and 50% share in BORL (Bharat cr. is the country’s largest Wax The Meet hosted by NRL was Oman Refineries Limited). producing unit with indigenous attended by representatives Addressing the meet Mr. D. technology developed by IIP from BPCL group refineries viz. Rajkumar, CMD, BPCL and Dehradun, EIL and NRL. Since Mumbai refinery, Kochi refin- Chairman NRL said, ‘Going for- commissioning of the Wax plant, ery and Bharat Oman Refineries ward, Finance function will have NRL has emerged as the largest Limited apart from host NRL. a major role to play in strengthen- manufacturer and marketer of The purpose of the Meet was ing the four pillars of a business Wax in the country. to explore areas for leveraging i.e. people, technology, infrastruc- ture and safety. Constant innova- tion and sustained excellence in operational, technical and fi- nancial spheres is imperative for survival of business in today’s world’. Mr. P. Padmanabhan Managing Director NRL, Mr. S. K. Barua, Director (Finances), Mr. S.R.Medhi Director (Technical) NRL, Mr. P. Balasubramanian Director (Finance) BPCL, Mr. R. Ramachandran Director (Refi- neries) BPCL and Mr. S. D. Mr. D.Rajkumar , CMD BPCL and Chairman NRL addressing BPCL Group Refineries Maheshwari GM (Finance) NRL Finance Synergy Meet at Kaziranga. also addressed the gathering.

Kaleidoscope January, 2017 87 Personalia

Mr. S. Gopu Commodore Rakesh Anand Dr. P. V. Ramesh takes charge as CMD, ITI IN (Retd) takes over as CMD, is appointed as CMD, REC. Limited. MDSL.

Mr. Kishore Chandra Das Mr. R. Vikraman Mr. P. K. Sarangi Mr. Chinmoy Gangopadhyay is appointed as Director takes charge as Director is appointed as Director takes charge as Director (Personnel), RINL. (HR) NLCIL. (Technology), Mecon. (Projects), PFC.

88 KaleidOscope January, 2017 Kaleidoscope January, 2017 89 90 KaleidOscope January, 2017