Paving way for closure of long-pending Jet-Etihad deal, fair trade regulator CCI on Tuesday approved the proposed acquisition of 24 per cent stake in the Naresh Goyal-led Indian carrier by Abu Dhabi-based airline.Etihad is acquiring this stake for Rs 2,058 crore in a deal that was announced in April this year, becoming the first-ever FDI (Foreign Direct Investment) in an Indian carrier by an overseas airline.
However, the deal has been stuck for months for want of various regulatory approvals. The clearance by the Competition Commission of India (CCI), whose nod is necessary for any major merger and acquisition deal involving an Indian entity, was among the last regulatory approvals for this transaction.
Among others, the deal has been already cleared by capital markets regulator SEBI, Foreign Investment Promotion Board (FIPB) and Cabinet Committee of Economic Affairs (CCEA).
The deal had to be revised after SEBI raised objections over a previous structure that involved Etihad possibly getting larger control over Jet Airways, which is a publicly listed company in India.
“Considering the facts on record and the details provided in the notice (under relevant section of the Competition Act)... the Commission is of the opinion that the proposed combination is not likely to have appreciable adverse effect on competition in India and therefore, the Commission hereby approves the same,” CCI said in an order.
The majority order, passed by CCI chairman Ashok Chawla and four members, said that the approval can be revoked if information provided by Jet and Etihad is found to be incorrect at any time.
However, one CCI member passed a minority order dissenting with the majority view and said the deal could have adverse impact on competition in international air travel market.
Probe agencies should not sit in judgment over policy, says Manmohan
Cases of administrative decisions and policy making matters need great care in investigations’
: Prime Minister Manmohan Singh said here on Monday that investigating agencies were increasingly enquiring into administrative decisions and policy matters and counselled police organisations against labelling the “decisions taken with no ill-intention within the prevailing policy” as criminal conduct.
The statement comes days after the Prime Minister’s Office issued a release defending Dr. Singh’s approval of the Coal Ministry’s decision to overturn a screening committee’s recommendation and accommodate Kumar Mangalam Birla’s company Hindalco, granting it an additional coal block. The allocation is now under the Central Bureau of Investigation scanner.
Dr. Singh was speaking at the opening of a three-day international conference on “Evolving Common Strategies to Combat Corruption and Crime,” organised by the CBI as part of its golden jubilee celebrations.
The Prime Minister said cases of administrative decisions and policy making matters required great care in investigations. “While actions that prima facie show mala fide intent or pecuniary gain should certainly be questioned, pronouncing decisions taken with no ill-intention within the prevailing policy as criminal misconduct would certainly be flawed and excessive.”
Dr. Singh advocated drawing lines of confidence between probe agencies and honest executive functionaries to ensure that “public servants are not paralysed in taking effective decisions based on their own sound judgment and on the apprehension of an ill-informed inquiry or investigation”.
Outlining that “protection of the honest” is a facet of Article 14 of the Constitution, he said keeping this in view only the Prevention of Corruption Act (Amendment) Bill, 2013, was introduced in Parliament to amend a provision that presently criminalises, even in the absence of any mens rea (guilty mind), any action of a public servant that secures for any person a pecuniary advantage.
High Court judgment
Earlier, speaking at the conference, Dr. Singh referred to the recent Gauhati High Court judgment pronouncing the institution of CBI as unconstitutional. He said, “This is a matter that will undoubtedly have to be considered also by the highest court in the land. The government will do all that is necessary to establish the need for the CBI and its legitimacy, and protect its past and future work.”
Russian Ministers head to Cairo for ‘full spectrum’ arms talks
Russia’s Foreign and Defence Ministers are heading to Cairo on Wednesday for the first ever two-plus-two meeting with their Egyptian counterparts as Moscow cashes in on its Syria triumph.
Ahead of the visit the Varyag missile cruiser, flagship of Russia’s Pacific Fleet, docked on Monday at the Mediterranean port of Alexandria, becoming the first Russian warship to visit Egypt in the past two decades.
During their joint visit on November 13-14 Foreign Minister Sergei Lavrov and Defence Minister Sergei Shoigu will discuss “the full spectrum” of Russia-Egypt ties, including “military-technical cooperation,” according to the Russian Foreign Ministry.
The visit comes as Cairo’s ties with Washington soured following the ousting of Islamist President Mohamed Morsy, with the U.S. freezing some of its military aid to Egypt. By contrast, Russia’s standing in the region has received a major boost after Moscow averted a U.S. military strike against Syria brokering a deal to relieve Damascus of its stocks of chemical weapons and strengthening its reputation as a country that does not dump its allies.
Egypt’s Foreign Minister Nabil Fahmy told Russia’s RT television on Tuesday that his country “is considering buying Russian weapons”.
Experts said Russia could supply weapons worth billions of dollars for the Egyptian Army.
“A $4-billion arms package that is being discussed could put Russia ahead of the U.S. as Egypt’s top defence supplier,” said military commentator Ilya Kramnik.
He said Egypt would be keen to buy Russian-made air defence systems, helicopter gunships, fighter jets and warships.
Centre holds CRIP as model for other States
The Union government has lauded the public-private partnership (PPP) model adopted for the City Road Improvement Project (CRIP) in the State capital. The project has undertaken the development and long-term maintenance of 42 km of roads.
The road network so developed, overcoming hurdles, is considered a trendsetter in the State. Now, the Centre has asked other States to learn from, and improve upon, the experience and draft city-specific financial models.
S.K. Lohia, Officer on Special Duty and Joint Secretary, Union Ministry of Urban Development, has written to the Chief Secretaries of the States and the Administrators of the Union Territories to identify urban road stretches for development and maintenance and make them demonstration projects.
The letter commends the CRIP’s “lifecycle approach” for road improvement, making the concessionaire, Thiruvananthapuram Road Development Company Ltd. (TRDCL), responsible for long-term maintenance.
The company, a special purpose vehicle under the Public Works Department (PWD) and financially backed by the Kerala Road Fund Board (KRFB), was responsible for all investments. The Board has acquired land and makes annuity payments and takes the financial risks.
The Centre has pointed out that the PPP mode is one of the possible options in view of the shortage of funds and the need for fast investments.
Enthused by the success of CRIP, the PWD is in various stages of taking up road development on similar lines in Kollam, Kottayam, Kochi, Thrissur, Malappuram and Kozhikode. On an average, 40 km of roads are being developed in these towns and cities.
Public Works Minister V.K. Ebrahim Kunju told The Hindu that the directive to the States to adopt CRIP as a model was a proud moment and recognition for the State. The professional approach adopted in road development had made the State a model.
“We have proved that the model is workable and worth emulating. The KRFB worked in tandem with the concessionaire to face all controversies. The patience displayed by IL&FS, the parent company of the TRDCL, was a key factor in the successful culmination of the project. It was team work. The lessons learnt have been passed on to the government,” Anil Kumar Pandala, Project Director, TRDCL, said.
‘Lifecycle approach’ commended
Minister calls it proud moment
Indo-Pak ‘zero trade zone’ proposal makes little progress
Even as businesses from both sides of the border have been pushing for enhancing economic engagement between India and Pakistan, the proposal for creating a ‘zero trade zone’ at the Wagah-Attari border, which would not require visa, for trade related transactions and interactions has made little progress due to freeze in the relations between the two nations.
The formal proposal in this regard and under the consideration of Commerce Ministries of both the countries but progress has been a bit slow due to recent incidents on the LoC and the freeze in India-Pak relations. The idea behind the whole exercise was to create a ‘zero trade zone’ at a neutral point on the Wagah-Attari border which would not require businessmen from any of the side to have a visa.
“It is a brilliant idea to create a trading zone where people from both sides could deposit their passports with their respective immigration authorities and then move to the neutral point for a meeting and indulge in discussions on various economic and trade issues,” a senior of the Commerce Ministry said.
This would not require businessmen from either side to go through the lengthy process of applying for the visa and then getting it and they would be eligible to meet at this neutral point and discuss business and trade. This will give a big boost to trade and economic engagement on both sides and further increase the people to people contact. “We are not pushing the proposal with great force as presently things between India and Pakistan are not normal and there is a certain amount of freeze in the relations. But maybe a few months down the line, this idea could be implemented on ground,” the official added.
SAARC Chamber of Commerce and Industry president, Vikramjit Singh Sahney said such a neutral trading point would provide businessmen an opportunity to meet each and discuss without any visa requirement. “We have also proposed to the government to set up conference rooms, display centres and one-window operation facilities at the neutral point. It would help in cementing business relationships,” Mr. Sahney said.
He also felt that Pakistan must announce non-discriminatory access for Indian goods and services. Despite the fact that both the countries signed a liberalised visa agreement last year, businessmen are still facing problems. He urged both India and Pakistan to seriously implement the idea of developing a Zero Point Border Market at the border.
Pakistan-India Chamber of Commerce and Industry president, S.M. Muneer strongly backed the creation of such a neutral zone and said it would lead to resolution of many of the problems faced by businesses and give a big fillip to trade and commerce
Olympic torch returns to Earth after historic spacewalk
Three astronauts returned to Earth on Monday after a 166-day mission, bringing the Olympic torch back from the International Space Station after a historic space walk.
The trip completed the most ambitious leg of Russia’s unparallelled torch relay in the run-up to the Winter Olympic Games in Sochi in February.
The torch, kept unlit throughout its space journey due to safety precautions on the space station and lack of oxygen in open space, was securely wrapped during the descent.
Spectacular backdrop
Russia sent the torch on its four-day space mission on Thursday and even covered the rocket in Olympic insignia. The torch was “hung” in the Russian module after taking a tour of the space station.
Cosmonauts Oleg Kotov and Sergey Ryazansky on Saturday took it for a space walk and photo op, posing spectacularly against the backdrop of the ISS and the Earth and completing a torch handover that was viewed live worldwide and shown on screens in New York’s Times Square.
The space-travelling torch will light the Olympic cauldron in the Black Sea resort of Sochi, marking the start of the Winter Games, authorities said.AFP
Heena gets World Cup pistol gold
Shooter Heena Sidhu created history by becoming the first woman from India to win a gold medal in pistol shooting at the ISSF World Cup finals in Munich, Germany.
Heena won the gold medal yesterday by beating double Olympic Champion Guo Wenjun from China, world champion Arunovic Zorana from Serbia and multiple Olympic medallist Olena Kostevych of Ukraine in a stiff competition.
The earlier gold medallists in this competition were Anjali Bhagwat [2002} and Gagan Narang [2008] in small bore rifle shooting, said a media release from Maharashtra Rifle Association. The ISSF World Cup is held once a year and features only top 10 shooters of the world.
Heena shot 384 points in the qualification stage and was in third position behind Ukraine’s Olena but ahead of China’s Guo, who was placed ninth, and Serb Zorana, who was placed sixth after the qualification stage, the release said. The Indian shooter made a shaky start in the final. She shot a 9.3 followed by another 9.3 and slipped to eighth position after the first two round. But Heena proceeded to score 15 consecutive bulls eye to end the competition with a huge lead of 5.2 points.
UN adopts Olympic Truce
The United Nations General Assembly on Wednesday adopted an Olympic Truce resolution that calls for conflicts to be suspended before, during and after the Olympic winter games scheduled to take place in Sochi. The resolution was adopted without a vote by the 193-nation assembly after the president of the International Olympic Committee (IOC), Thomas Bach, called for a partnership between politics and sports.
The resolution calls for truces to come into force seven days before the start and until seven days after the end of the Olympic and Paralympic winter games. The truce was established in Ancient Greece and revived by the UN in 1993 and calls for the creation of a peaceful environment for the games and safe passage of athletes and spectators to the games and their return.DPA
An opportunity to free CBI
Earlier this year, the Supreme Court described the Central Bureau of Investigation as a ‘caged parrot’. Far from setting it free, the Gauhati High Court sought to exterminate it. The court’s judgment holding that the CBI is not a legally constituted police force has been stayed by the Supreme Court for now. The absence of a clear legal link between the establishment of the CBI and the Delhi Special Police Establishment Act, 1946, the law under which the agency has been functioning for half a century, is indeed an irresistible point of law that was bound to be raised by someone some day. However, the moot question is whether the High Court ought to have taken such a hyper-technical view and struck down the Union Home Ministry Resolution of April 1, 1963, by which the agency was formed. While there could be some merit in the contention that the CBI’s legal basis was somewhat unclear, the High Court could have highlighted any legal infirmity it found and sought the government’s views on how it could be cured — instead of invalidating the CBI’s very existence. The Supreme Court will have to decide whether to accept the CBI’s legality as a fact established by five decades of existence and functioning with judicial recognition, and how any infirmity, if that exists, is curable.
The Special Police Establishment (SPE), formed in 1941 under the War Department to curb corruption, got statutory status under the Delhi SPE Act, 1946. Its work was transferred to the CBI as soon as it was formed in 1963 by a Resolution. The High Court has now said it was a mere executive instruction with no sanction from the Cabinet or assent from the President. It has been generally assumed that the CBI is synonymous with the SPE, and the High Courts and the Supreme Court have passed orders from time to time transferring to it sensitive investigations from out of the hands of State police departments. The constitutional basis for the CBI’s formation is traceable to Entry 8 in the Union List, ‘Central Bureau of Investigation and Intelligence’, but the High Court did not find it good enough. Prime Minister Manmohan Singh has promised to do everything necessary to establish the agency’s legality and protect its past and future work. It may be an opportune moment to provide a firmer statutory framework for the CBI, one that grants it the functional autonomy that the Supreme Court mandated in the Vineet Narain case in 1997. The Lokpal Bill, stalled due to political bickering despite being passed in the Lok Sabha, also provides for measures to insulate graft investigation from interference and envisages an independent role for the CBI under the Lokpal’s supervision. Strengthening this bill and ensuring its early adoption would be the right course.
