Chandigarh, August 26
Low-cost carrier AirAsia India today announced the commencement of its direct flight to Chandigarh from Bangalore from September 5, saying the company’s aim is to offer fares 30% cheaper than rates prevailing in the market. This was announced by AirAsia India CEO Mittu Chandilya here today.

He said in order to help domestic airlines overcome losses, the government should relax taxes.

The Chandigarh-Bangalore flight will operate daily and will offer a low base fare price of Rs 1,900 (all inclusive) varying up to the highest price of Rs 6,500 (depending upon booking time and travel class). The booking for the flight has already been started and the Chandigarh airport will also have a dedicated ticket counter.

The flight will leave Bangalore at 1.30 pm for Chandigarh and then take off from Chandigarh for Bangalore at 4 pm.

On the airline’s catch of offering low base fares, the CEO said, “We are targeting to provide more services to people by offering 30% less price than the market rates. The fare bucket will depend on the time of the booking. However, our rates will remain 30% less than our competitors even on the spot bookings.”

The company has also announced Jaipur-Bangalore flight and also plans to introduce more flights from Chandigarh. “After observing the response to our Chandigarh-Bangalore flight, we will surely add more to our travel plan from Chandigarh. With the upcoming international terminal, we would like to expand our business by offering more in low base price,” the CEO said.

AirAsia has also announced their association with Kings XI Punjab for the upcoming Champions League T20 2014, commencing on September 13 and for IPL-8 edition.

On offering discounts even after suffering losses, the CEO admitted that AirAsia did have losses but with the introduction of new routes, they would be able to overcome it. "Heavy tax structure is a major concern in aviation business. The government should ease tax structure so that airlines can perform better and more people are able to travel by air,” he said. He stressed that relaxation in taxes will increase the profit of airlines and volume of passengers.

On the airline’s expansion, he said the company will have six more aircraft till December. The company also plans to add another 10 to 12 aircraft till 2015. "We are looking at having good experience in India. In order to attain this, the next two months will be crucial. We are adding more aircraft to our fleet so as to increase our frequency,” the CEO added.

“So far, we have received good business and with the same hope we are making our base in North India," Chandilya said.

New Delhi, August 26
The 14 carmakers, who have been slapped with penalties by the Competition Commission of India (CCI) for indulging in unfair practices in the spare parts market, are likely to challenge the order in the appropriate court, claiming that the fine was uncalled for and against business practices.

The CCI has slapped Rs 2,545-crore fine on 14 car manufacturers for selling their spare parts through authorised dealers only and thereby indulging in monopolistic trade practice.

The CCI said car companies entered into agreements with component manufacturers who sell their products only through authorised dealers.

“These agreements imposed absolute restrictive covenants and completely foreclosed the after-sale market for supply of spare parts and other diagnostic tools”, CCI said.

The highest penalty of around Rs 1,346 crore have been imposed on Tata Motors. Other major companies include Maruti Suzuki, Mahindra and Mahindra, Toyota, General Motors and Honda.

New Delhi, August 26
Country’s largest bank State Bank of India today slashed home loan rate by up to 0.15% on housing loan, a move likely to be followed by other lenders.

Home loans of up to Rs 75 lakh would now be available to fresh borrowers at 10.10% against the existing rate of 10.15%, SBI said.

The bank has removed the additional concession of 0.05% given to women borrowers earlier and has brought in uniformity to all borrowers.

“It has now been decided to offer uniform interest rate on home loans with effect from August 26, irrespective of the loan amount,” it said. — PTI

New Delhi, August 26
Retirement fund body EPFO’s trustees today decided to retain interest payment on provident fund deposits for 2014-15 at 8.75%.

“It has been decided to pay 8.75% interest in the current fiscal,” Central Provident Fund Commissioner KK Jalan said after the meeting of the Central Board of Trustees, the apex decision making body of the EPFO. The EPFO has about 5 crore subscribers and the decision will have a bearing on their retirement fund.

The decision to retain the interest rate on the provident fund deposits at last year’s level was taken despite some protest by the trade union members of the CBT, sources said. — PTI

New Delhi, August 26
Food Processing Minister Harsimrat Kaur Badal today said global food and beverages major PepsiCo is looking to bring down sugar contents in its softdrinks. Badal met PepsiCo chairman and CEO Indra Nooyi here.

"In soft drinks they (PepsiCo) are looking at how to bring down the sugar content (but) that same cold drink has the taste but healthy contents in it," the Minister said after the meeting. Nooyi, however, did not comment and only said her visit to India was "wonderful".

The minister also added that the PepsiCo chairman was open to the idea of playing a role in enhancing the nutritional value of meals provided under the government's midday scheme.

"I have suggested if they could come up for mid-day meal scheme in rural areas as malnutrition is big issue... some of these packed meals which could enhance the nutrition value and which provide for iron deficiency they were interested in that they said they would look into that," Badal said.

Badal said she discussed with Nooyi on how to contribute in giving healthy food in tiffins for school going children. — PTI

Lucknow, August 26
Multinational soft drink giant Coca Cola’s Indian subsidiary, Hindustan Coca Cola Beverages Plant (HCCBP) has decided to withdraw its application for expansion of production from Central Ground Water Board.

As per sources, HCCBP is planning to get its application cancelled from Central Ground Water Board for its Mehndiganj plant in Varanasi.

The company required permissions (NOC) from the Central Ground Water Board (the national groundwater regulatory agency) and the state-wide pollution regulatory agency — the Uttar Pradesh Pollution Control Board.

The Central Ground Water Board was to take a decision on the HCCBP’s application to expand its production by August 25, 2014.

To pre-empt the denial, HCCBP on August 22 decided to withdraw its application unconditionally.

Sandeep Pandey, visiting faculty, Department of Chemical Engineering, IIT-BHU, demanded that the operation of Coca Cola plant at Mehndiganj, Varanasi, should be stopped.

He said earlier on June 6, 2014, an order of the UP Pollution Control Board showed that HCCBP had increased its capacity without obtaining permission from the authorities concerned and were misleading the UPPCB by continuing to show the same quantity of effluent.

He said the violation by HCCBP was “serious” considering that a May 15, 2012 order of UP Government’s Chief Secretary had declared the Araji Line Block, in which the Mehndiganj plant is located as ‘critical’ from the point of view of groundwater table and had strictly banned installation of bore wells and water pumps.

In the context of such gross violation Pandey demanded UPPCB’s June 6, 2014 order to prevail and the HCCBP plant be completely shut down rather than it being allowed to operate at its initial capacity.

BRIEFLY

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