- Tuesday, February 25, 2025
By: Shubham Ghosh
HERE are news in brief on Indian economy and business for Wednesday, January 24, 2023:
India’s aviation regulator Directorate General of Civil Aviation (DGCA) has fined Air India Rs 1.10 crore (£104,000) for safety violations related to the operation of leased Boeing 777 aircraft to the US. This marks the second penalty in a week for the elite airline. The DGCA initiated action after a complaint from a former Air India pilot regarding the absence of the required emergency oxygen supply on Boeing 777s to the US. While the airline plans to appeal, DGCA maintains the penalty due to operations not aligning with regulatory/OEM limits. “Since the said operations of the leased aircraft were not in line with regulatory/ OEM (Original Equipment Manufacturer) performance limits, DGCA has initiated enforcement action and imposed a penalty of Rs 1.10 crore on Air India,” the regulator said in a release on Wednesday. Air India contends there was no safety compromise and is exploring appeal options.
Indian media conglomerate Zee Entertainment urged Sony on Wednesday to fulfill its commitments in closing a $10 billion (£7.8 billion) merger deal, as the Japanese company terminated the agreement, seeking $90 million (£70.6 million) in termination fees. Sony ended the merger plans with Zee on Monday (22), citing unsatisfied “closing conditions” and failed deadline extension negotiations. Zee, denying breach claims, initiated legal action against Sony, contesting the allegations in arbitration proceedings at the Singapore International Arbitration Centre. Zee called upon Sony to withdraw the termination and honour their obligations for the merger’s implementation. Zee also said on Wednesday it has approached India’s National Company Law Tribunal, which handles corporate disputes, seeking directions to implement the merger.
Companies with shareholders from India’s neighbouring countries, including China, seeking to list on exchanges within its new International Financial Services Centre (IFSC) in the western state of Gujarat must obtain the federal government’s approval, as per new regulations unveiled on Wednesday. The guidelines, part of prime minister Narendra Modi’s flagship project, GIFT-IFSC, a tax-neutral financial centre, position it as a competitive hub that aims to compete with countries such as Singapore. The rules mandate government approval for listings if the beneficial owner is from a country sharing a land border with India. Despite not naming specific countries, similar rules in 2020 affected investments from China with which India has serious border disputes.
Indian capital goods manufacturer Gainwell Group announced on Wednesday that it has taken over management control of TIL Ltd (formerly Tractors India) following an investment of Rs 120 crore (£11.3 million). The investment was made by Indocrest Defence Solutions, a Gainwell Group company. Gainwell confirmed the news in a statement. TIL’s erstwhile management had brought in Gainwell Group as a strategic investor after encountering financial constraints in recent years. TIL is a listed leading manufacturer specialising in technology-intensive defence products such as drones. It had posted a loss of Rs 91 crore (£8.5 million) in 2022-23. The new management under Sunil Kumar Chaturvedi has now set a target of generating over Rs 200 crore (£18.8 million) in revenue by FY25, as per the statement.
May-Elin Stener, the Norwegian Ambassador to India, took to the social media platform X on Wednesday to share a momentous update about Norfund, the Norwegian Investment Fund for developing countries. “Happy to receive Norfund board of directors to India where the Norwegian Investment Fund has invested in renewables sector to contribute to India’s ambitious green goals. Investments now over 286 million USD including 50 million USD investment in SAEL announced during this visit,” Stener posted. Norfund, owned and funded by the Norwegian government, serves as a critical instrument in advancing sustainable development in developing countries.
In a move aimed at bolstering economic ties and creating a structured framework for collaboration, the Indian federal cabinet, chaired by prime minister Narendra Modi, on Wednesday approved the proposal for signing a protocol for the establishment of a Joint Economic and Trade Committee (JETCO) between India and the Dominican Republic. According to a cabinet press release, this decision reflects the commitment of both nations to deepen bilateral relations and foster a more robust economic partnership. Currently, there is no bilateral institutional mechanism specifically focused on trade and commerce between India and the Dominican Republic.
(With agencies)
