january 30, 1995

Secret agreement signed recently by the Air-India management headed by its acting Managing Director, Mr. D. S. Mathur, and the Indian Pilots Guild (IPG) representing 462 pilots in the country’s international airline to grant them practically a non-flying allowance has sent shock waves in the organisation. The agreement, which seeks to give the pilots a hefty increase in flying allowance ranging between $65 an hour at the junior-most level to $107 for the senior-most, was shrouded in such secrecy that only Mr. Mathur and the IPG office-bearers were privy to it. Even the Ministry of Civil Aviation was kept in the dark.

Conditional nod for 4 power projects

Finance Ministry has cleared external commercial borrowings of four fast-track power projects, subject to clearance by the Central Electricity Authority and the Government of power purchase agreements and counter guarantees respectively. The approval for the projects, which are close to completing their financial closing before March-end, was given last week. The Dhabol Power Company, setting up the Enron power project, was the first to receive the nod. The other projects which have bagged ECB approval are Spectrum, AES Tanspower’s AES Ib Valley Corporation and the Ispat venture.

Ordinance okays bank capital revamp

The Centre has allowed capital restructuring in banks. A new ordinance, providing for a revamp of the capital base of nationalised banks, has prohibited reduction of paid-up capital below 25 per cent from the existing level. The paid-up capital, on which the reduction will be computed, will be determined by the base amount prevailing on the date of the ordinance, which came into effect from January 21.

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