joint venture agreement Tata Sons will own 51% and Singapore Airlines will own 49% holding in the joint venture The company has applied to the Foreign Investment Promotion Board for approval to establish the new airline The initial Board will have two members nominated by Tata Sons and one by Singapore Airlines Details of the airline's branding, management team and products and services will be announced in due course

New Delhi, September 19
The Tata group today announced that it is launching a new full-service airline in a joint venture with Singapore Airlines with an upfront investment of $100 million. The airline may take off next year after necessary clearances, sources said.

History is coming full circle with this alliance which did not take off in 18 years back in 1995 when the two companies had announced airline plans.

Tata Sons, the holding company of the Tata group, signed an MoU with Singapore Airlines under which it will own 51 per cent stake in the proposed carrier while 49 per cent will be with Singapore Airlines. The recent changes in FDI policy in aviation had allowed 49 per cent to be held by foreign carriers.

The group, which had in February announced a partnership with Malaysia's Air Asia for a low-cost carrier in India, said it had applied for approval from the Foreign Investment Promotion Board (FIPB) to establish the new airline, which will be based in New Delhi.

The initial board of the new carrier will have three members, two nominated by Tata Sons and one by Singapore Airlines. The chairman will be Prasad Menon, nominated by Tata Sons.

This is the third attempt by the two partners to enter the Indian civil aviation sector. In 1995, they had applied to the FIPB for a full-service airline but the venture never took off due to a change in the civil aviation policy in 1997 that barred foreign carriers from holding stake in domestic airlines.

In 2000, Tatas and Singapore Airlines had jointly bid for the 40 per cent divestment of Air India but withdrew from it in December 2001. The disinvestment of Air India did not take place due to political opposition.

Commenting on the fresh development, Menon said, “It is Tata Sons’ evaluation that civil aviation in India offers sustainable growth potential. We now have the opportunity to launch a world class full service airline in India. We are delighted that we are partnering in this endeavour with the world renowned Singapore Airlines.”

Singapore Airlines CEO Goh Choon Phong said, “We have always been a strong believer in the growth potential of India's aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market. With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full service air travel”, he added.

The statement said details of the airline's branding, management team and products and services will be announced in due course.

Mohali, September 19
The recent ban by the US Food and Drug Administration (USFDA) on import of drugs made at pharma major Ranbaxy’s unit here would not have any major impact on the company as there was no export of any drug from this plant to the US of late. As per sources, no drug, being manufactured here, is being exported to the USA of late.

“That does not mean we are not bothered with the USFDA’s concerns. We will take all necessary steps to resolve the issue at the earliest”, said Krishan Ramalingam, general manager, global corporate communications, Ranbaxy, over the phone from Gurgaon.

The sources added that the company has already sacked two senior officials - a plant head and quality control head - after the USFDA had raised certain objections over hygiene and quality issues at the plant after conducting an inspection last year.

Ramalingam, however, denied commenting on the removal of two officials.

The USFDA had sent a communiqué to the company a couple of days ago, informing that the regulator has imposed an import alert on Ranbaxy’s Mohali facility. During its inspection, the officials of the USFDA had found tablets embedded with ‘black fibre’, suspected to be a hair or oil spot. The absence of running water in washrooms of the plant had also upset the USFDA officials then.

The management claimed that all drugs, being manufactured at Mohali plant, are being exported.

“The unit is being visited by health authorities of several countries every now and then and it has been approved by the health authorities, including WHO, Geneva, ANVISA, Brazil, Beizirksregierung Koln, Germany, MCC, South Africa”, said SK Bahl, GM of Mohali plant.

New Delhi, September 19
The depreciating rupee is hitting the car manufacturers hard with almost all companies either announcing a hike in the prices of their cars or indicating that the increase in prices was round the corner.

With the automobile industry already facing a downturn over the past few months, the falling rupee has left the manufacturers with no option but pass on the rising inputs costs to customers.

Hyundai Motor India Ltd (HMIL) today said it would hike prices by up to Rs 20,000 across models, except the newly launched compact car Grand i10, from October 1 to offset the impact of rupee’s depreciation and rising input costs.

Hyundai Motor India senior VP, sales and marketing Rakesh Srivastava, said, "We will increase the prices from October 1 between Rs 4,000 and Rs 20,000 across models except Grand i10”.

On Tuesday, Toyota Kirloskar Motor had announced it would hike prices of its key models by up to Rs 24,000 with effect from September 21 to partly offset higher cost of raw materials and rupee depreciation.

Earlier this month, Ford India had hiked prices by 1-5 per cent on different models with immediate effect to offset rising input costs after German luxury car maker Mercedes-Benz last month hiked prices of its entire range in India by up to 4.5 per cent from September 1 to partly offset impact of rupee depreciation and higher import duties.

General Motors India had also hiked the price of its three models by up to Rs 10,000 from the first week of September.

Srivastava said, "The rupee depreciation and inflationary trends have impacted our input costs. We have been absorbing most of the costs but now we are compelled to consider the price increase."

New Delhi, September 19
The Foreign Investment Promotion Board (FIPB) today approved a proposal of Axis Bank to increase the limit on overseas holdings in the lender to more than 49 per cent.

The proposal was cleared at an FIPB meeting chaired by Economic Affairs Secretary Arvind Mayaram, sources said.

The FIPB approved raising the foreign equity holding in Axis Bank to 62 per cent from 49 per cent, subject to the condition that the holding of foreign institutional investors does not exceed 49 per cent.

At present, the FII holding in the bank is 40.7 per cent while domestic institutional investors have 8.77 per cent.

Axis Bank had approached the FIPB last month after the RBI said the limit of investments through Global Depository Receipts (GDRs), American Depository Receipts (ADRs), FDI, NRI and FIIs in the bank had breached the overall limit of 49 per cent of its paid-up capital. — PTI

Mumbai, September 19
The country's largest lender, State Bank of India, today said it has increased its base rate, or the minimum rate of lending, to 9.80 per cent, a day ahead of the RBI's policy review.

"SBI has revised the base rate by 0.10 per cent from 9.70 per cent per annum to 9.80 per cent," it said. Retail term deposit rates have been revised upward, it said.

SBI is the first major bank to hike lending rates after short-term rates rose as a result of the RBI’s liquidity tightening moves announced in July.

The decision comes on the eve of the mid-quarter review of the monetary policy.

SBI also increased the spreads on auto and home loans by as much as 0.20 per cent, which will affect new borrowers.

Home and auto loan borrowers typically pay a margin, or a spread, above the base rate, which is arrived at as per the risk and quantum of borrowing.

The bank has hiked rates for loans under the benchmark prime lending rate, an older system of computing interest rates, to 14.55 per cent from 14.45 per cent. The lending rate hikes are effective from today, it added.

New housing loans under Rs 30 lakh will come at 10.10 per cent as against 9.95 per cent earlier, while interest rates on auto loans will go up to 10.75 per cent, the official said. — PTI

Gurgaon, September 19
Haryana Chief Minister Bhupinder Singh Hooda said here today Haryana and the UK must synergise their strengths for mutual benefit. He asserted that Haryana’s buoyant economy, younger workforce and large market can combine well with the UK’s technological and skill prowess and financial resources, leading to successful cooperation.

He was speaking at the launch of the first UK-India Business Centre of the UK-India Business Council (UKIBC) in Gurgaon today.

The Centre was inaugurated by UK Minister for Trade and Investment Lord Stephen Green. British High Commissioner James Bevan, UKIBC chairperson Patricia Hewitt and several leading UK and Indian businessmen and policy-makers were present.

In his address, Lord Green maintained that the UK India Business Centre would help small and medium entrepreneurs of the UK and provide them necessary support to capitalise on the huge potential of the Indian market. He said six such centres would be opened in India. The second centre will be established at Bangalore in the first half of next year.

Hooda said the UK-India Business Council, which is a lead organisation in promoting bilateral trade and investment between the two countries, had played a key role in creating and sustaining an environment conducive for flourishing of free trade and investment.

“I understand that this business centre at Gurgaon and the planned network of UK India Business Centres will provide services and assistance to the UK businesses, especially the small and medium enterprises looking to enter or expand their business links in India,” he said and added small and medium enterprises had been globally recognised as an engine of economic growth and key instruments for promoting equitable development.

Chandigarh, September 19
Honda Motorcycle & Scooter India (HMSI) has announced a partnership with Punjab State Co-operative Bank to provide retail finance for the two-wheeler customers in the state. The benefits include attractive features like low down payment, monthly/half yearly instalment option, highest ever repayment tenure of five years and easy documentation.

It can be availed by people of 21-60 years of age. Through this partnership, buyers can avail a loan of up to Rs 50,000 or 85% of the value of Honda two-wheeler, whichever is less.

New Delhi, September 19
Coal India Ltd (CIL) is examining a number of proposals it has received in response to the bids it invited from bankers and interested parties for acquiring assets abroad.

"A number of proposals has been received and are being evaluated based on their marketing potential," according to a source.

Pursuant to the Government of India's guidelines to acquire raw material assets abroad, a notice inviting proposals offering overseas coal assets to CIL was floated on February 27. The bids were invited by Coal India Videsh, set up with the intent of enhancing the country's energy security. — PTI