For the first time since the losses hit the national carrier Air India, the payment of salaries for the current month of about 30,000 employees will be delayed by a fortnight.
Confirming this, an Air India spokesperson said, "The salaries of June will be paid on July 15 due to the resource crunch that the company is facing."
The payment of productivity-linked incentive (PLI) has also been delayed by 15 days, according to a circular issued by Air India management.
Air India's losses for the last financial year are estimated at around Rs 4,000 crore, up from Rs 2,226 crore in the previous fiscal.
Reports say the national carrier was planning to seek Rs 5,000 crore as additional equity, Rs 7,000 crore as a soft loan payable after five years at a five per cent interest rate, and a grant of Rs 2,000 crore.
However, top Air India officials have denied the figures, but said they are working on similar lines.
Maintaining that the financial crisis was foreseen last year, industry sources said the acute situation could have been avoided had Air India delayed the ongoing deliveries of aircraft, like its competitors Jet Airways and Kingfisher Airlines did.
They said there is no capacity since air traffic had gone down substantially due to the financial meltdown, and so the induction of additional aircraft could have waited.
Air India has placed orders for 111 new planes worth over Rs 45,000 crore and it currently has a paid-up capital of Rs 145 crore and authorized capital of Rs 1,500 crore package would not match Air India's expectations.
Agencies
Showing posts with label delays. Show all posts
Showing posts with label delays. Show all posts
Monday, June 15, 2009
Monday, March 2, 2009
Delayed projects hold up over 160,000 job creations
India has lost the opportunity of employing more than 160,000 people with 18 major steel, power and auto projects getting delayed over land acquisition and forest and environment clearance issues, says a study by a business chamber.
According to the study by the Associated Chambers of Commerce and Industry (Assocham), "the 18 strangled projects of India Inc to the tune of Rs.244,815.5 crore (Rs.2.45 trillion) remained on papers, in the form of memorandum of understanding (MoU) and agreements over the past three-four years".
However, a smooth implementation could have created job opportunities for at least 164,000 people directly and 270,000 people indirectly, it added.
"Assocham Research Bureau has identified 18 major projects announced by India Inc in sectors such as power, steel, automotive, IT, real estate and metals and mining that are just on papers and struggling for government clearances since 2003-04 till 2008," Assocham president Sajjan Jindal said.
The delayed projects include Posco India's proposed 12 million-tonne capacity steel plant in Orissa; it has already obtained in-principle for the special economic zone status needed for getting land in August 2005, and has pumped in some Rs.1.75 billion.
But delay in land acquisition has been a major stumbling block, Assocham said, adding that a green signal could have generated employment for 35,730 people.
Tata Steel's three greenfield projects in Jharkhand, Orissa and Chhattisgarh - on a cumulative investment of Rs.820 billion - are similarly in a state of uncertainty on account of land acquisition procedures. Assocham said the three projects could have created employment for at least 2,000-3,000 people directly.
Similarly, Arcelor-Mittal's steel projects in Orissa and Jharkhand are facing peculiar situation for the past three years.
In Jharkhand, the company has got iron ore mines, but not the land, whereas in Orissa, it has land, but are yet to get mines. The planned investment in both the states are a little over Rs.43,050 crore, and is estimated to have generated direct employment for over 5,000 people and indirect employment for about 20,000.
Some mega greenfield projects in Jharkhand, if implemented, would have created nearly 9,000 jobs, Assocham said, basing its estimates on proposed investments of about Rs.40,900 crore by Essar Steel, Jindal Steel and Power and Jindal South-West.
Likewise, in the automotive sector, M&M's joint venture in Chennai with Renault and Nissan has been deferred following a delay in land acquisition; this would have created work for at least 5,000 people directly, Assocham said.
Agencies
According to the study by the Associated Chambers of Commerce and Industry (Assocham), "the 18 strangled projects of India Inc to the tune of Rs.244,815.5 crore (Rs.2.45 trillion) remained on papers, in the form of memorandum of understanding (MoU) and agreements over the past three-four years".
However, a smooth implementation could have created job opportunities for at least 164,000 people directly and 270,000 people indirectly, it added.
"Assocham Research Bureau has identified 18 major projects announced by India Inc in sectors such as power, steel, automotive, IT, real estate and metals and mining that are just on papers and struggling for government clearances since 2003-04 till 2008," Assocham president Sajjan Jindal said.
The delayed projects include Posco India's proposed 12 million-tonne capacity steel plant in Orissa; it has already obtained in-principle for the special economic zone status needed for getting land in August 2005, and has pumped in some Rs.1.75 billion.
But delay in land acquisition has been a major stumbling block, Assocham said, adding that a green signal could have generated employment for 35,730 people.
Tata Steel's three greenfield projects in Jharkhand, Orissa and Chhattisgarh - on a cumulative investment of Rs.820 billion - are similarly in a state of uncertainty on account of land acquisition procedures. Assocham said the three projects could have created employment for at least 2,000-3,000 people directly.
Similarly, Arcelor-Mittal's steel projects in Orissa and Jharkhand are facing peculiar situation for the past three years.
In Jharkhand, the company has got iron ore mines, but not the land, whereas in Orissa, it has land, but are yet to get mines. The planned investment in both the states are a little over Rs.43,050 crore, and is estimated to have generated direct employment for over 5,000 people and indirect employment for about 20,000.
Some mega greenfield projects in Jharkhand, if implemented, would have created nearly 9,000 jobs, Assocham said, basing its estimates on proposed investments of about Rs.40,900 crore by Essar Steel, Jindal Steel and Power and Jindal South-West.
Likewise, in the automotive sector, M&M's joint venture in Chennai with Renault and Nissan has been deferred following a delay in land acquisition; this would have created work for at least 5,000 people directly, Assocham said.
Agencies
Monday, January 12, 2009
Microsoft delays Windows 7 beta download
Microsoft Corp said on Friday it has paused offering downloads of the public test version of its new version of Windows due to "high demand."
The "beta" launch of the highly anticipated update to Microsoft's Windows franchise began early on Friday, but the company had to halt downloads to add more servers.
"We are adding servers as fast as we can add them," a Microsoft spokesman said at the Consumer Electronics Show in Las Vegas.
He declined to say when Windows 7 downloads would resume.
Microsoft said at CES on Wednesday it would let consumers test the next generation of its computer operating system starting Friday.
Microsoft, the world's biggest maker of software, has said Windows 7 will incorporate touch screen technology and allow users to more easily personalize the system. It promised more user-friendly features, such as a new taskbar that previews all open windows from a single application by hovering over the program's icon.
The "beta" launch of the highly anticipated update to Microsoft's Windows franchise began early on Friday, but the company had to halt downloads to add more servers.
"We are adding servers as fast as we can add them," a Microsoft spokesman said at the Consumer Electronics Show in Las Vegas.
He declined to say when Windows 7 downloads would resume.
Microsoft said at CES on Wednesday it would let consumers test the next generation of its computer operating system starting Friday.
Microsoft, the world's biggest maker of software, has said Windows 7 will incorporate touch screen technology and allow users to more easily personalize the system. It promised more user-friendly features, such as a new taskbar that previews all open windows from a single application by hovering over the program's icon.
Tuesday, December 30, 2008
India delays 3G spectrum auction
The Government of India has further postponed the auction of the much-awaited 3G spectrum in the country taking into consideration the concern of the prospective applicant companies, say reports.
According to a report, the last date of receiving application has been extended to January 20 from January 5. Though the auction was supposed to take place before December 31, it was later postponed to January 16.
Earlier there were reports that the auction would be delayed as the Department of Telecom has not received the Cabinet's approval on vital proposals relating to the services.
Also it was said that the Defence Ministry, which holds the spectrum, may not be able to vacate the same before the auction date.
According to a report, the last date of receiving application has been extended to January 20 from January 5. Though the auction was supposed to take place before December 31, it was later postponed to January 16.
Earlier there were reports that the auction would be delayed as the Department of Telecom has not received the Cabinet's approval on vital proposals relating to the services.
Also it was said that the Defence Ministry, which holds the spectrum, may not be able to vacate the same before the auction date.
Tuesday, December 2, 2008
Global recession; Wipro customers cancel contracts!
Indian IT outsourcing company Wipro is seeing a few customers cancel contracts and more delaying or downsizing deals as a result of deteriorating global economic conditions, its joint chief executive said.
Girish Paranjpe added that Wipro, India's third-biggest software services exporter, was feeling minimal impact from last week's attacks that killed almost 200 people in Mumbai, and reiterated that the company expects business to improve next year.
Referring to the Mumbai attacks, he told Reuters in an interview on Monday, "I don't see any operational impact of that ..."
When asked about cancellations by Wipro's customers -- who include Cicso, Credit Suisse and Nortel -- he said: "Some few, but much more delay, postponement, resizing -- a few cancellations."
Paranjpe said he remained hopeful that business would pick up in the company's first quarter beginning in April next year after a slowing that began about a quarter ago. Customers cannot sustain constrained spending indefinitely, he said.
"About six months you can manage with compression, three to six months you can manage with compression. Beyond that, you have to start thinking longer-term," he said.
"I'm still kind of optimistic that we would have gone past the bottom some time in the first fiscal quarter" next year, he added.
Sector leader Tata Consultancy Services and fellow large Indian outsourcer Infosys have recently expressed cautious optimism about the market, but like most peers they face at least short-term uncertainty.
Wipro makes about half its revenue in the Americas, and about a quarter globally from the financial services sector -- a fairly typical business split among Indian outsourcers, whose large English-speaking workforces gave them an early advantage.
Asked how tough price negotiations were becoming, Paranjpe said Wipro was trying to help customers cut costs in other ways than lowering prices. "There is a discussion about how we can alleviate the pain that they are going through. Our discussion has been about how we can help them with cost, rather than focused on price."
"That's what clients ultimately care about: Given the downturn, how much has my budget gone down and to what extent can you contribute to help me bridge the gap?" he said.
Paranjpe argued that big players like Wipro stood to gain market share as customers looked for reliable partners. "You want fewer people you can bet on, who are going to survive the downturn as well. So there is an almost automatic flight to size and quality," he said.
Although consolidation in the financial sector would undoubtedly make for a tougher market, Paranjpe said it would also bring opportunities in the medium term as customers would have to integrate and streamline their operations.
It would also bring chances to make acquisitions as valuations dropped -- possibly large ones, after last year's $600 million buy of Infocrossing -- and to make selective hires of personnel who might have been unaffordable in better times.
"I think we have gone past the small-budget acquisitions, which is not to say that we will never do a small one, but which is also to say that big dollar signs don't scare us," he said.
"We would like all the acquisitions to be made outside India so we can globalise our workforce."
Asked about the effect of the weakening rupee and stronger dollar on Wipro's results, Paranjpe said, "It's dizzying, actually. It's completely roller-coaster, on the currency side."
"So what we have decided is that we will simply go hedge, for a certain duration, and let our treasury worry about that, and the business will really focus on generating profits from operations," he said.
Wipro will be more cautious about spending but does not plan a hiring or travel freeze, Paranjpe said.
"Building our new facilities we're kind of watching more carefully, hiring lots more people. We're kind of being circumspect about spending on marketing ... being more cautious about travel."
"Full-page ads are out," he added. "Any business which has been in full growth mode for five years does accumulate a certain amount of excess baggage."
Source: Reuters
Girish Paranjpe added that Wipro, India's third-biggest software services exporter, was feeling minimal impact from last week's attacks that killed almost 200 people in Mumbai, and reiterated that the company expects business to improve next year.
Referring to the Mumbai attacks, he told Reuters in an interview on Monday, "I don't see any operational impact of that ..."
When asked about cancellations by Wipro's customers -- who include Cicso, Credit Suisse and Nortel -- he said: "Some few, but much more delay, postponement, resizing -- a few cancellations."
Paranjpe said he remained hopeful that business would pick up in the company's first quarter beginning in April next year after a slowing that began about a quarter ago. Customers cannot sustain constrained spending indefinitely, he said.
"About six months you can manage with compression, three to six months you can manage with compression. Beyond that, you have to start thinking longer-term," he said.
"I'm still kind of optimistic that we would have gone past the bottom some time in the first fiscal quarter" next year, he added.
Sector leader Tata Consultancy Services and fellow large Indian outsourcer Infosys have recently expressed cautious optimism about the market, but like most peers they face at least short-term uncertainty.
Wipro makes about half its revenue in the Americas, and about a quarter globally from the financial services sector -- a fairly typical business split among Indian outsourcers, whose large English-speaking workforces gave them an early advantage.
Asked how tough price negotiations were becoming, Paranjpe said Wipro was trying to help customers cut costs in other ways than lowering prices. "There is a discussion about how we can alleviate the pain that they are going through. Our discussion has been about how we can help them with cost, rather than focused on price."
"That's what clients ultimately care about: Given the downturn, how much has my budget gone down and to what extent can you contribute to help me bridge the gap?" he said.
Paranjpe argued that big players like Wipro stood to gain market share as customers looked for reliable partners. "You want fewer people you can bet on, who are going to survive the downturn as well. So there is an almost automatic flight to size and quality," he said.
Although consolidation in the financial sector would undoubtedly make for a tougher market, Paranjpe said it would also bring opportunities in the medium term as customers would have to integrate and streamline their operations.
It would also bring chances to make acquisitions as valuations dropped -- possibly large ones, after last year's $600 million buy of Infocrossing -- and to make selective hires of personnel who might have been unaffordable in better times.
"I think we have gone past the small-budget acquisitions, which is not to say that we will never do a small one, but which is also to say that big dollar signs don't scare us," he said.
"We would like all the acquisitions to be made outside India so we can globalise our workforce."
Asked about the effect of the weakening rupee and stronger dollar on Wipro's results, Paranjpe said, "It's dizzying, actually. It's completely roller-coaster, on the currency side."
"So what we have decided is that we will simply go hedge, for a certain duration, and let our treasury worry about that, and the business will really focus on generating profits from operations," he said.
Wipro will be more cautious about spending but does not plan a hiring or travel freeze, Paranjpe said.
"Building our new facilities we're kind of watching more carefully, hiring lots more people. We're kind of being circumspect about spending on marketing ... being more cautious about travel."
"Full-page ads are out," he added. "Any business which has been in full growth mode for five years does accumulate a certain amount of excess baggage."
Source: Reuters
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