Issue 139 WEEKLY MEDIA UPDATE 19 May, 2014 Monday (This document comprises news clips from various media in which Balmer Lawrie is mentioned, news related to GOI and PSEs, and news from the verticals that we do business in. This will be e-mailed on every Monday.) Narendra Modi follows Vajpayee’s Sebi asks FinMin to consider tax sops footsteps, to head both government & for mutual fund alliance In a bid to boost the mutual fund industry, Prime minister-elect Narendra Modi is likely to market regulator Sebi has requested the hold the position of the chairman of National Finance Ministry to consider various tax sops Democratic Alliance (NDA), following the example and other measures for investors and a final of Atal Bihari Vajpayee who headed both the decision in this regard would be taken by the government and the ruling coalition. new government. These are part of Sebi's efforts to incentivise and channelise household Top sources in the BJP said NDA's working savings into long-term investment products. chairman LK Advani had been told that Modi will have to lead the coalition to ensure smooth The Securities and Exchange Board of India functioning of the government and the supporting (Sebi) had already approved these measures alliance. Vajpayee, who has been seriously unwell and has now written to the Finance Ministry for some years, is still NDA chairman. about the proposals. The regulator would push Economic Times - 19.05.2014 for implementation of these measures with the http://economictimes.indiatimes.com/news/politic new government, official sources said. s-and-nation/narendra-modi-follows-vajpayees- Money Control - 18.05.2014 footsteps-to-head-both-government- http://www.moneycontrol.com/news/mf- alliance/articleshow/35315551.cms news/sebi-asks-finmin-to-consider-tax-sops- for-mutual-funds_1088260.html Cabinet ratifies 4.66% stake sale in CAG will audit private companies, BHEL PPPs having revenue sharing pact Following the block deal, government stake in BHEL with Government came down to 63.06% Regretting that economic progress has thrown The Cabinet Committee on Economic Affairs up a class of 'rent seekers', Comptroller and (CCEA) today ratified the decision to sell 4.66% Auditor General Shashi Kant Sharma today said stake in power equipment maker BHEL through the CAG will continue to audit private block deal route. The decision was ratified by the companies and Private Public Partnership (PPP) CCEA headed by Prime Miniser Manmohan Singh, projects in cases where revenue sharing with sources said. the government is involved. The Finance Ministry in March had sold 4.66% "Work on telecom audit is already in progress stake in the state-owned company to Life and I am hopeful that our first report would be Insurance Corporation (LIC) for about Rs 1,889 ready before the year end. A report on gas and crore. LIC purchased 11.41 crore shares in BHEL oil exploration will be presented to Parliament at a price of Rs 165.55 apiece through a block soon. We will be taking up performance audit deal on the BSE. of some ongoing PPP projects shortly," he said while speaking at a conference on corporate Following the block deal, government stake in fraud. BHEL came down to 63.06%, from 67.72%. The Economic Times - 13.05.2014 Empowered Group of Ministers, headed by Finance http://economictimes.indiatimes.com/news/poli Minister P Chidambaram, had in February decided tics-and-nation/cag-will-audit-private- on the timing and mode of disinvestment in BHEL. companies-ppps-having-revenue-sharing-pact- Business Standard - 14.05.2014 with-government/articleshow/35060875.cms http://www.business- standard.com/article/companies/cabinet-ratifies- 4-66-stake-sale-in-bhel-114051301247_1.html Regulatory failure caused rise in Privatize PSU banks, change corporate fraud: CBI governance structure: RBI panel The CBI on Tuesday blamed "collective failure" of A Reserve Bank of India (RBI) panel set up to regulatory mechanism for the rise in corporate review governance of bank boards has frauds in recent years involving a sum of nearly Rs suggested that the government should either 29,000 crore. privatize or merge state-run banks, or design a new governance structure for these banks to India has witnessed a marked increase in the allow them to compete better and avoid number of scams that have surfaced in public and repeated requests for recapitalization. private sectors, said CBI director Ranjit Sinha. "The scale and size of corporate frauds has The panel suggested privatization or a different zoomed in the last 15 years with most cases governance structure in view of the low involving siphoning off funds by promoters, top productivity and steep erosion in asset quality management and defrauding the lenders or and “demonstrated un-competitiveness of investors," he said. public sector banks over varying time periods”. Times of India - 14.05.2014 Livemint - 13.05.2014 http://timesofindia.indiatimes.com/india/Regulator http://www.livemint.com/Industry/r2heGpQ6gz y-failure-caused-rise-in-corporate-fraud- udX31VrU7aLI/Change-governance-structure- CBI/articleshow/35092293.cms in-PSU-banks-RBI-panel.html IOC chairman appointment delayed MoT launches web system for recognition of Travel Trade Key PSU appointments, including chairman of nation's largest firm Indian Oil Corp (IOC), have Ministry of Tourism has launched a Web-based been delayed as outgoing Prime Minister Public Delivery System for recognition of the Manmohan Singh did not sign any non-urgent file Travel Trade Service Providers. The objective during his last days in office. of the system is to ease the process of filing applications by the Travel Trade Service As many as 56 files, many of them pertaining to Providers seeking recognition from the Ministry approval for appointments at state firms, were put of Tourism and also to bring in transparency in up to Prime Minister in last 7-10 days but Singh granting the approvals. returned them saying they should be considered by the new government under Narendra Modi, The MoT presently approves Inbound Tour sources privy to the development said. Operators; Travel Agents; Domestic Tour Times of India - 18.05.2014 Operators; Adventure Tour Operators and http://timesofindia.indiatimes.com/Business/India Tourist Transporters Operators. The new -Business/IOC-chairman-appointment- procedure will accept applications online delayed/articleshow/35297199.cms through a website www.etraveltradeapproval.nic.in from service providers thereby make the process paperless. Travel Trends Today - 19.05.2014 http://traveltrendstoday.in/news/2014/05/19/ mot-launches-web-system-for-recognition-of- travel-trade Budget airlines woo biz travellers SpiceJet announces ticket sale for Tier II cities; price starts at Rs 1,899 Budget airlines are wooing the business traveller ahead of the launch of two new Indian airlines. Low cost carrier SpiceJet launches has GoAir is revamping its business class product, launched yet another discount fare for direct GoBusiness, with more comfortable seating and and connecting flights to North and eastern SpiceJet is offering free flights to companies on cities. The three day offer, starting Thursday, the purchase of 6-10 tickets. The aviation industry will offer all inclusive tickets at as low as Rs is highly seasonal with summer and winter peak 1,899 one way on direct as well as connecting seasons. All airlines depend on business travellers flights, which will be valid for travel between for regular traffic. July 1 and September 30. Business Standard - 13.05.2014 Indian Express - 15.05.2014 http://www.business- http://indianexpress.com/article/business/com standard.com/article/companies/budget-airlines- panies/spicejet-announces-ticket-sale-for-tier- woo-biz-travellers-114051201014_1.html ii-cities-price-starts-at-rs-1899/ Domestic airlines like SpiceJet and After SpiceJet, IndiGo offers others try to lock in flyers as AirAsia discounted tickets starting at Rs 1,407 readies to take off A day after SpiceJet announced a fresh sale of Indian carriers have in the past few months tickets for tier 2 cities, IndiGo the country's brought changes to their pricing strategy, giving largest airline by passenger market share, has customers more advance purchase opportunities announced its own discounted fare offer. For and at the same time spiking prices on close-in or bookings till May 17th 2014, IndiGo is offering spot tickets, setting the ground to give a tough one-way tickets starting at Rs 1,407 for flights fight to AirAsia which claims to be bringing the on select sectors between July 1 and lowest fares into the market. Low-fare carrier September 24. Key routes available under the SpiceJet has led the change. The airline has discount offer are Jammu-Srinagar (Rs 1,407), triggered about seven-eight industry-wide rounds Mumbai-Ahmedabad (Rs 1,880), Chennai- of flash sales so far this year, compared with two Bengaluru (Rs 1,593), Jaipur-Mumbai (Rs or three a year earlier. 2,325) and Chennai- Hyderabad (Rs 1,908). The Economic Times - 16.05.2014 The Financial Express - 17.05.2014 http://economictimes.indiatimes.com/industry/tra http://www.financialexpress.com/news/after- nsportation/airlines-/-aviation/domestic-airlines- spicejet-indigo-offers-discounted-tickets- like-spicejet-and-others-try-to-lock-in-flyers-as- starting-at-rs-1407/1251697 airasia-readies-to-take- off/articleshow/35127259.cms Qatar Airways launches website for Qatar Airways sharpens focus on India Indian travel trade but IndiGo tie-up seems difficult Qatar Airways has launched an exclusive website Qatar Airways interest in IndiGo, India's largest for Indian travel trade partners. The website is domestic airline, reflects the Gulf's carrier's aimed at providing up-to-date information on the strategic focus and its desire to increase traffic company. The site is designed to serve as a rights in India but an alliance between the two unified communication channel for Indian trade to seems unlikely because of varying business keep them informed and updated about various models and IndiGo's sound financial position.