Indian Airlines to hike fares from May
New Delhi: Domestic carrier, Indian Airlines, announced that it would be hiking its fares by up to 30 per cent from next month to arrest depleting revenues.

The state-run airline, facing stiff competition from private carriers, has also urged the government to allow it to increase fares in the future without New Delhi's permission.

Traditionally, IA fares, which need government approval, have been based on the tapering cost principle, whereby shorter routes cost more than longer distances.

Under the proposed revision, the maximum increase on any sector will be 30 per cent, while increases in Category II routes, which are subsidised and cover regions such as the northeast, will not exceed 15 per cent.

The airline has said increase in operating costs, including that of fuel and landing charges, have prompted this fare hike.

IA is one of the largest airlines in the world, flying some 26,000 people every day to nearly 60 destinations, including 10 abroad.
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Godbole to lead renegotiations with Enron
Mumbai: Following US energy giant Enron’s threat to terminate the agreement with the government of Maharashtra, the state government has decided to appoint former bureaucrat Madhav Godbole to lead the expert team for renegotiating the aggrement. Mr. Godbole had recently reviewed Dabhol Power Company's power purchase agreement with the Maharashtra State Electricity Board.

The government is expected to issue an official order to this effect.

Mr. Godbole has been chosen since he is in the know of each and every minute detail of the 2,184-mw project.

Other members in the panel would include HDFC chairman, Deepak Parekh, MSEB chairman Vinay Bansal and central power utility National Thermal Power Corporation's representative.

The CM maintained that termination of PPA would be harmful to both DPC and MSEB and that Enron should not take any 'harsh decision' in the matter
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CII appoints consulting firm to reposition itself
New Delhi: Apex industries body, Confederation of Indian Industries (CII) has appointed noted consulting firm, Boston Consulting Group to help it to reinvent and reposition itself.

The announcement was made by newly-elected CII president Sanjiv Goenka who said that the external consultant had been hired to re-energise and revamp CII so that the confederation stays relevant and on the cutting edge in a rapidly changing business environment.

BCG is expected to present its report by the end of May.

Earlier the apex body had appointed consultants in 1987 when it metamorphosed from the Association of Indian Engineering Industry to the Confederation of Engineering Industries, and then in 1992 when it became what it is currently known as, CII.

BCG will be evaluating areas/ roles which CII should be discarding and or getting into.

CII would continue to focus on corporate governance, transparency and help corporate India to learn and play the WTO game. It has recently helped Bajaj Auto and Nicholas Piramal in terms of restructuring their balance sheets and presenting their balance sheets in a more transparent and efficient manner.

CII’s revenues for 2000-1 were Rs 108 crore, with projections of a 30 per cent increase for the fiscal ending 2002. It has roughly 3,800 members comprising large, and small and medium enterprises, as well as national and regional industry associations.
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