The first board meeting of Air-India chaired by Mr. Russi Mody today passed the annual accounts of the airlines for 1993-94 which showed a profit of Rs. 201 crores. However, the board was told that in 1994- 9 5 Air-India will post a net profit of only Rs. 15 crores due to the severe knocking the airlines took following the outbreak of plague which not only led to suspension of lucrative flights to the Gulf sector but also a spate of cancellations. Though no specific turnaround strategy was discussed, sources said Mr. Mody was keen to talk to the various Air-India unions. He has already met the engineers and will be holding discussions in Bombay with the Indian Pilots Guild and other ground staff unions from December 12 to 17.

US fund bodies wary of Indian power projects

The response of US financial institutions to India’s invitation for funding private power projects is unlikely to be good till the country rating goes up. The poor financial condition of the State electricity boards (SEBs) is a second negative factor. This is notwithstanding the Minister for Power, Mr. N. K. P. Salve’s week-long sojourn in the US where he met prospective independent producers (IPPs) and various financing agencies. According to industry sources, a piquant situation prevails in the US as far as financing power projects in India is concerned. While a number of private power developers, besides those already in, are keen to set up projects in the country, the financiers are still hesitant to enter the fray. This, sources,explain, is

because financial organisations view power investment prospects in a global perspective and take country rating more seriously as they are capital intensive.

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