Tata airlines project proposal gets FIPB nod
The FIPB today gave the go-ahead to the Rs. 1,475-crore Tata airlines project proposal for launching a domestic airline with a 40 per cent foreign equity holding, but having no connections with any foreign airlines. The foreign equity in the project is now proposed to be held by FIIs as its earlier proposal involving Singapore Airlines with a 40 per cent equity participation finally stood rejected by the Civil Aviation Ministry.
Banks prefer defaulting on CRR to borrowing at high rates
Some commercial banks have preferred to default on CRR rather than borrow from the call money market at high fates to meet their obligations. The call rates firmed to 120-130 per cent following the measures announced by the RBI to curb the volatility in the foreign exchange market. As per the RBI directive, the CRR to be maintained with the central bank has been hiked by 50 basis points with immediate effect. Banks were in a fix whether to maintain the CRR balance or to meet the payment obligations of the borrowings made earlier.
Cotton farmers' suicide may be major poll issue
Suicide by cotton farmers in Andhra Pradesh is likely to be a major issue in the ensuing Lok Sabha elections. Till now, 45 farmers have committed suicide and, according to the State Government, 85 per cent of the deaths were due to crop failure leading to indebtedness and consequent hardships. Political parties are leaving no opportunity to condemn Mr. Chandrababu Naidu’s Government.