New Delhi, October 23
There appears to be no end to Kingfisher Airlines’ problems. Civil Aviation Minister Ajit Singh on Tuesday refused to intervene in its affairs, saying the government could not intervene in the dealings of a privately-owned airline, while a large section of employees rejected the management's offer of staggered payment of salaries, demanding payment of unpaid dues in one go by Thursday.

Meanwhile, facing criticism for his absence and silence, the airline’s promoter, liquor baron Vijay Mallya, finally surfaced with a tweet that raised more questions than answering any. “I travel 24x7 where my multiple work responsibilities take me. Sections of media call me an absconder because I don't talk to them,” he stated. There was, however, no response either on the future of the employees or that of his grounded airline.

So while only a miracle can perhaps save Kingfisher, coming ahead of the F1 Grand Prix, the mess is a big embarrassment for Mallya. His team Force India is a competitor and employees are now planning to take their protest to the Greater Noida venue.

But the problems will not end with the payment of dues. The civil aviation minister is clear paying salaries was not the only way out as Kingfisher needed a financially viable plan to be able to fly again. “It’s a private company and does not come under any ministry. Yes, they have a problem, but the government can’t interfere. The Kingfisher problem is very big. Even if they pay the salaries today, are they going to take off and fly? I don`t think so. They have to give a financially sound plan to prove they can maintain schedules, pay taxes oil companies and airport charges,” Singh said.

While the government virtually washed its hands off the airline, employees, except those in Mumbai, rejected the offer of three-month salary payment, demanding that their unpaid dues from March to June be paid in one go on or before Oct 26. Under the deal offered by the management, the salary dues of one month would be paid in 24 hours, another month's installment in seven days and the third installment before Diwali.

Stock slides 4.6% after staff SAYS NO
Shares of Kingfisher Airlines tumbled by 4.6% on the bourses in the morning trade after the employees rejected the airline's offer of payment of three months' salary. The scrip of the debt-laden carrier fell 4.59% to hit the lower circuit limit of Rs 10.40 in the opening trade on the BSE. A similar movement was seen on the NSE, where stock dropped by 4.61% to touch its lowest permissible limit for the day of Rs 10.35. — PTI

New Delhi, October 23
With the two Ambani brothers giving a miss to the forthcoming 2G spectrum auction, speculation is ripe they have bigger plans in place to become important players in the telecom segment.

While the younger of the Ambani brothers, Anil has written a letter to the prime minister alleging the telecom policy was loaded in favour of a “coterie led by Bharti Airtel”, market reports suggest the elder brother, Mukesh, might be behind the application put in by Videocon Industries to participate in the forthcoming auction.

The situation has become all the more complex as the Mukesh Ambani-led Reliance Industries Ltd is known to have a strong interest in the telecom sector and its absence from the auction has had analysts thinking about what could be his next move.

While RIL already has interest in the telecom sector acquired Infotel Broadband that had won pan-India spectrum for offering high-speed internet broadband, reports said that the two brothers may also waiting for the next round auction which may come up after the government decides on the refarming of spectrum aspect.

The government plans to shift the incumbent telecom operators from the 900 MHz band to 1800 MHz band which would vacate the more precious 900 MHz band and would be brought for auction.

There is also speculation that with Reliance Industries getting ready to launch its high speed 4G broadband services on a pan-India basis, it could be in a position to offer voice calls also.

Although, the spectrum that RIL holds through Infotel Broadband does not has permission to provide voice calling facility, reports suggested that the company may actually provide the facility to its subscribers for free.

Incidentally, sitting on a cash pile of Rs 70,732 crore at the end of the June quarter, RIL was the most notable participant at the pre-bid conference organised by the department of telecom in the run-up to the auction.

There is also a lot of buzz that Videocon Industries may be a proxy for the country’s largest conglomerate. Videocon has applied for licences in 17 circles for 1800 Mhz and ten circles for 800 Mhz band, which the analysts say could be a front for RIL.

They point out Videocon has a net worth of Rs 9,700 crore and its participation and winning the spectrum in the auction may prove to be a bit heavy on its finances, leading to speculation that RIL may be backing its bid.

New Delhi, October 23
Prime Minister Manmohan Singh has asked government departments to improve coordination in expediting project clearances to revive growth in the economy.

Addressing a meeting of the heads of 25 major maharatna and navaratna public sector undertakings on Tuesday, Singh underlined the need for generating an appropriate long-term vision.

He asked the heavy industry minister and the department of public enterprises to work with the finance ministry, Planning Commission and the National Manufacturing Competitiveness Council for addressing these issues. "We’re a government determined to overcome difficulties in the spirit of national enterprise", he added.

At the meeting, the Prime Minister asked the public sector undertakings to use their large cash surpluses for investments in the economy. He asked the CPSEs to use that surplus for their own benefit and the benefit of the economy. “They should use it for driving investment, growth and jobs. Investing such cash surplus would help in reigniting the growth impulses that are present in the economy”, he said.

Singh pointed out that the investment rate in the country had declined due to recent slowdown, which should be increased to 36% to 37% to achieve 8% growth. Finance Minister P. Chidambaram had earlier asked PSUs to invest more to kick start the investment cycle in the economy.

Emphasizing the role of PSUs in driving growth, Singh added: “We can’t be satisfied with the status quo. Our growth should be maintained at the level of 8% to 8.5% regardless of what happens in the world economy. We must learn to swim and swim fast enough whatever be the circumstances."

Chandigarh, October 23
Leading integrated textile manufacturer, JCT Ltd, is in dire financial straits. The company that has been the harbinger of ushering textile industry in Punjab, is now facing a winding up petition filed by the London branch of The Bank of New York Mellon, for failing to clear its dues.

A petition has been filed in the Punjab &Haryana High Court, seeking the winding up of the company under various provisions of the Companies Act. While admitting the petition, justice Surya Kant has issued a show cause notice to JCT for Jan 9, 2013, and directed that the company will not dispose of their immoveable assets without the prior permission of the company court.

The high court has also issued notice to the company on the application filed by the creditor against the proposed corporate debt restructuring (CDR) offered by JCT, to its creditors.

It may be mentioned that JCT was amongst the first companies to start textile manufacturing in Punjab in 1946, and has a production capacity of 63 million metres per annum. It manufactures fine cotton and blended fabrics, besides filament yarn at its factories in Phagwara and Chohal in Hoshiarpur.

According to the petition filed before the high court, JCT had been issued foreign currency convertible bonds worth US $30,000,000 in 2006, which were due for redemption in April 2011. At the time of redemption, the amount due to The Bank of New York Mellon was $33,121,306 (Rs 177.97 crore). The failure of the company to make payment of the redemption amount due on the bonds, led to the creditor pressing charges of default against the textile manufacturer.

However, the company has pleaded that they have been unable to satisfy the redemption in accordance with the conditions of the bond, because the recession of 2008 hit its major customers, thus resulting in major losses to the company. This also eliminated the ability to refinance the debt and/or pay out of the profitability of the business, which generated a shortfall of funds on the balance sheet due to recurring losses.

In a letter to its creditor, a copy of which is available with The Tribune, the company has said that though it could not fully recover from the recession and projected growth in business and revenues could not be achieved. The company is currently going through a period of stabilization and has implemented a strategy to reduce the losses and put it in a position, where it can start generating profits and positive cash flow. The company, through its chief financial officer, has asked for the creditor to agree to a scheme for restructuring the terms and conditions of these bonds.

Mumbai, October 23
Hero MotoCorp, the world's largest two-wheeled vehicle manufacturer, was hit by rising competition and slowing demand, knocking second quarter profit down 27 percent.

Motorcycle sales in India have been subdued by high interest rates and rising fuel costs, while Hero's dominant market share has been eroded by an aggressive push by former partner Honda Motor Co.

"Sensing the slowdown in the market, we led the way in adjusting our production plans in August and September, and this has been reflected in our quarterly sales figures," Pawan Munjal, managing director, said in a statement.

Hero's operating margin in the quarter stood at 13.86 %, down from 15.76% in the same period a year previously and 15% in the previous quarter.

Since splitting from Honda Motor Co last year, Hero has juggled ramping up its exports, which were restricted under the 26-year joint venture, signing new technology tie-ups to boost its expertise, and fighting off the domestic threat to its market share posed by its former partner.

Hero's domestic two-wheeler sales fell 2.9% in the first six months of this fiscal against a 3.1% rise in overall industry sales, according to the Society of Indian Automobile Manufacturers. — Reuters