Economy & Business  

Govt plans to speed up purchases for Air India, Indian Airlines 

What is India News Service, June 23, 2004, 1630 hrs

The civil aviation ministry is planning to set up a transparent and speedy mechanism to acquire planes for Air India and Indian Airlines. 

It is keen on a re-bid as the existing bids are at least two years old. Boeing, which had been left out last time, may get to make a fresh bid this time around. The government is planning to dispense with the multi-level clearances required for plane acquisition. Indian Airlines needs 43 aircraft, while Air India plans to buy 28.

The government is all set to scrap the previous government's decision to set up an independent regulator to fix rail fares and freight charges. The railway ministry will retain its exclusive privilege to fix its rates.

A survey found Bangalore-based IT professionals commanding more spending power than their counterparts in other Indian cities.

A price war has erupted in the insurance sector, with ICICI Pru Life aggressively taking  on the unit-linked schemes offered by HDFC Standard Life.

Corporate India is on the verge of a hiring binge. A TeamLease Gallup survey reported that the employment outlook ishihgest among companies with an employee strength of 250 to 500. Companies in the manufacturing sector are the most optimistic in their plans.

Overall:

No multiple-level red tape: The civil aviation ministry is keen on closing its plane buying deals quickly.

Ministry will decide rail fares: The UPA government is scrapping the idea of a regulator to fix train fares.

Insurance hots up: Private players are competing by offering price cuts and more incentives.

Manufacturers are optimistic: They could go on a hiring spree in anticipation of a surge in the non-IT goods sector.