01.09.2008

• ATF prices brought down a tad
• On an average, jet fuel prices have been cut by Rs 11,784 per kilolitre for domestic airlines. For international airlines, which are not subject to local sales tax, the cut would be $205 per kilolitre.
• Regular fare hikes have taken their toll on air travel. While the aviation sector growth slipped 4% in June, it posted a negative growth of nearly 10% in July.
• In spite of this cut, none of the airlines appeared to be in a hurry to reduce air fares. This is understandable because the airline industry in India is expected to post losses of nearly $2 bn in the current year.
• Top salary receivers in India
• Look at this graphic which shows you the top salary earners in India. Obviously they are all Directors of the corporate world.
• As can be expected, the Reliance brothers top the list. But a couple of surprise entries from the South are also there: Sun TV and IVRCL honchos.
• National skill development council
• It is appointed by the prime minister and comprises of experts like CK Prahalad, Nandan Nilekani, Rajendra Pawar, Teamlease’s Manish Sabharwal, Sewa’s Renana Jhabvala and Laila Tyabji.
• The Planning Commission came up with a scheme to set up 50,000 skill development centres over the Eleventh Five-Year Plan period of 2007-12. The National Skill Development Council has come up with a game-changing proposal to create, within a short period of time, no less than two lakh skill development centres by making use of the existing stock of public educational institutions above the high school level as physical infrastructure, private enterprise, bank credit, budgetary outlays and tax breaks, besides philanthropy.
• The idea is to make use of the buildings of higher educational institutions of the country for skill development programmes after regular class hours. Besides, state level missions headed by the chief ministers themselves are to be formed to co-ordinate the efforts of different government departments and agencies as well as involve local experts and representatives of different skill sectors.
• The Centre has allocated Rs. 31,000 crore for this skill development plan.
• Problems that appear so insurmountable can be resolved if there is an understanding from all the sides
• This may be an oft repeated cliché. But look at the way the agitation in Jammu was called off following successful talks! I hope the peace lasts…
• The two-month-long agitation for the restoration of 800 kanals of land to the Shri Amarnathji Shrine Board (SASB) was called off in Jammu on Sunday after the Shri Amarnath Yatra Sangharsh Samiti (SAYSS) and the Jammu and Kashmir governor’s panel arrived at an accord conceding the main demands of the agitationists.
• The agreement paves the way for the granting the control of the 800 kanals of land in Baltal and Domail to the SASB for the duration of the Amarnath yatra. In a move aimed at preventing any scope for misunderstanding, it also spelt out the kind of facilities that could be provided by the Board.
• The resolution of the land row is expected to restore peace and normalcy in the Jammu region, which had witnessed unprecedented levels of protests and demonstrations in the past two months.
• Let’s give thumbs up for all the parties involved in settling the issue. We wish them all success.
• Goa plans ban on sale of land to outsiders
• Land sale to outsiders in Goa could become a thing of the past. The state government is seriously considering a ban on the sale of land to outsiders. The purpose? To preserve the state’s “unique identity and culture”.
• Can the constitution of India allow this? I have my doubts on this. But Goan authorities are quoted as saying that they will study the legislations passed by Karnataka and Uttarkhand before passing their own legislation.
• Let’s keep a tab on this issue. This could be a possible debating or interview question.
• Salient features of the Companies Bill 2008
• The Bill seeks to reduce government’s role in corporate affairs, leaving the shareholders to decide on most issues including managerial remuneration.
• The Bill has allowed ‘class action suits’ and proposed special courts to deal with offences under the Bill.
• Investors would not lose claim over dividend or a security even if unclaimed for more than seven years.
• The Bill also proposes to consolidate all fora for dealing with routine corporate issues such as restructuring and M&As, winding up and rehabilitation, into a company law tribunal and an appellate authority.
• It proposed allowing the setting up of one-person companies.
• It does away with the limit on the number of subsidiaries a company can have, but desires appropriate disclosure of their relationships and transactions.
• What is ‘nice’?
• Nowadays the financial journos are going gaga over this new-found word!!
• Reportedly uttered by Mervyn King, the governor of the Bank of England, it is an acronym for ‘non-inflationary continuous expansion.’
• What’s wrong with our water systems and what can be or should be done to prevent calamities like the Kosi floods?
• Read this article by Jaideep Mishra. A good read. Gives you adequate base to formulate your own ideas.
• What are the indicators that point to an economic slowdown in our country?
• Look at this very good piece from Chetan Ahya. But be warned. It is meant for hard core economics and finance guys. Those of you who don’t have a stomach for it; better keep out. For the lesser mortals amongst us, I give some salient points:
• Capital goods output growth.
• Trends in aggregate fund raising activities like bank credit, equity issuances and foreign-debt borrowing
• Trends in investment imbalances. This imbalance in investments results in overall ‘effective’ capacity growth being weaker than what total investments would imply.
• Global economic environment – adverse or otherwise.
• Capital inflows.
• We may not be seeing the kind of growth that we have witnessed in the last three years. Still, the country may witness somewhere between 7 to 8% GDP growth. This is the feeling we get when we read analyses like these from leading economists.
• Take a look at our insurance market figures
• The market for insurance (both life and non-life) in 2006-07 stood at $41.74 billion, with the life insurance market growing at 47.38% while the nonlife business rose by 21.51%.
• It is estimated that life insurance market alone is expected to touch $80 billion in the next couple of years.
• Life insurance premium collections (including single premium, first year and renewal) in 2006-07 stood at Rs 1.56 lakh crore representing a year-on -year growth of 47.38%.
• Indian insurance market accounts for a paltry 1.12% of the global insurance market estimated to be at $3,723 billion.
• Get a picture of what is meant by size?
• Hurricane Gustav
• Thousands of people in New Orleans and across the US Gulf Coast fled their homes on Sunday as Hurricane Gustav barreled through the Gulf of Mexico packing a punch potentially as powerful as Hurricane Katrina.
• Language lessons: barrelled
• In the above noting, it means: tapered toward both ends