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What’ll It Take India To Be A Major Aviation MRO Hub?

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Aviation MRO

India has a thriving aviation industry, with a rapidly growing fleet of aircraft that require maintenance, repairs and overhaul services. The potential for India to become a major player in the MRO (Maintenance, Repair and Overhaul) sector is substantial. With the right approach and investments, aided by good governance, India could emerge as one of the leading MRO hubs in the world.

The Indian aviation industry is booming, with a fleet of over 700 commercial aircraft in operation and a projected growth rate of 8% per year. By 2037, the Indian aviation market is expected to be the third largest in the world, with over 1,000 aircraft in operation. This represents a significant opportunity for the MRO sector, as airlines will require comprehensive support services for their aircraft to keep them in top condition.

However, India has a long way to go before it can become a major Aviation MRO hub. The country currently lacks the infrastructure, skilled labor, regulatory framework and a fair enforcement and litigation system, all of which are required to build a world-class MRO industry. But this can change with the right investments, and a focus on developing a talent pool geared towards the MRO industry.

One of the major challenges for India is the absence of a strong domestic MRO market. Although there are a few small MRO companies in India, most airlines prefer to send their aircraft for maintenance and repairs to countries like Singapore, Dubai, and Malaysia. This raises the obvious question, “Why do Indian companies operating in India prefer flying their aircraft abroad instead of utilizing services of MRO’s authorized by DGCA under CAR 145 and located in India?” While the reasons remain debatable, one needs to understand that most of the aircraft operating in India are leased. The owners of these aircraft i.e. the Lessors are companies, more than 90% of which are registered on foreign lands. These lessors have not yet developed the kind of faith needed for them to allow changing their age old clauses in their Lease Agreements to get their aircraft serviced under Indian MRO’s. This lack of faith emanates from several reasons. The lessors view India’s regulatory policies and infrastructure to be not yet up to international standards. The acknowledged shortage of skilled technicians and engineers adds to the conundrum.

India's Zoom Air
Zoom Air’s several CRJ 200’s remain parked in India as the Airlines License remains suspended and the company embroiled in a web of litigations (Photo credits: Zoomair.in)

To change this, India needs to attract investment from global MRO companies, who can bring their expertise, technology, and capital to India. For this to happen, India needs a favorable business environment with liberal investment policies, low taxes, streamlined regulations and a fair and quick dispute resolution mechanism. The Indian government needs to work towards making India an attractive investment destination, by creating a favorable policy environment and investing in infrastructure.

India also needs to invest in human capital development, by training technicians, engineers, and mechanics specialized in MRO services. This is a long-term process that requires collaboration between industry, government, and academic institutions. By investing in training centers, vocational courses, and apprenticeships, India can create a pool of highly skilled workers who are trained to meet international standards. Such training should incorporate specialized skills, such as component repair, aircraft inspection, and avionics, which are critical to MRO operations. Not only technical skills, but managerial skills are equally important for a professional career growth. This aspect has remained overlooked all through planning stages by most aviation companies and the result is a self evolved management cadre that lacks the sensitivities and benchmarks of an efficient management system.

Another key area where India’s MRO industry needs to improve is in the development of aerospace parks. Aerospace parks are industrial zones specifically designed for the aviation industry, where all the infrastructure and services required for MRO operations are provided. This includes facilities such as hangers, workshops, laboratories, and storage, as well as ancillary services like transport and logistics. To appreciate the need of this and as a learning measure, India needs to simply send it’s top honchos and policy makers sitting in Parliament to neighboring countries like Singapore or Malaysia. Aerospace parks can help create a hub of aviation excellence that attracts global MRO companies to India, helping the country to emerge as a major MRO destination.

Nonetheless, India has made some progress in this regard, with initiatives like the Nagpur Aerospace and Precision Engineering City (NAPC) and the Hyderabad Aerospace and Precision Engineering Park (HAPEP). However, more such initiatives are required, especially in states with a strong aviation industry, such as Karnataka, Maharashtra, and Tamil Nadu.

Finally, India needs to focus on strengthening its regulatory regime. At present, India’s regulatory framework is fragmented, with multiple agencies overseeing different aspects of the industry. This can lead to conflicts, regulatory gaps, and inefficiencies. To develop a strong MRO industry, India needs a coherent and unified regulatory system that is in line with international standards. A centralized regulatory body with the power to enforce standards and regulations can help streamline the industry and create a level playing field for all players.

Lot of work has been done in this direction as one can see in a more streamlined and efficient functioning of Directorate of Civil Aviation under DGCA. The outsourcing of online licensing management to efficient companies like Tata’s has already started showing results with improved efficiency. The government’s initiative of direct induction of Aviation Expert’s into the Regulatory bodies like DGCA to overcome the shortfall of trained and experienced manpower is a laudable effort. Such efforts needs to be encouraged and further expanded as steps in the right direction.

Last but not the least, India’s justice system needs to send the right signals to the global business community. A quick, fair and just legal system devoid of any biases irrespective of domestic or international clients, goes a long way in adding to the confidence required by international companies to shape investment decisions.

India’s potential to become an MRO giant is immense, but the country needs to overcome many challenges before it can realize this potential. By investing in infrastructure, human capital development, aerospace parks, regulatory reforms and a justice system that inspires confidence, India can build a world-class MRO industry that meets the needs of the growing aviation sector. This will involve partnerships between industry, government, and academic institutions, as well as a long-term commitment to training and development. But the rewards of such investments will be substantial, not just for India’s economy, but also for global aviation.

The post What’ll It Take India To Be A Major Aviation MRO Hub? appeared first on N4M (News4masses).


TruJet’s New Avatar, The NS Airline, Set to Soar in Indian Skies

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NS Airline

In a major development within the Indian aviation industry, Trujet, in its all new avatar as NS Airlines set to launch operations in India. The new Airline is backed NS Aviation, a renowned aviation company based in the United States. This collaboration involves NS Aviation taking a whopping 85% stake in Trujet, thus injecting a new lease of life in the otherwise struggling airline. This article explores the implications of this transformative takeover and its potential impact on Indian skies.

The Rise of Trujet

Trujet, originally Turbo Megha Airways Private Limited, commenced operations on 12 July 2015 with a flight from its Hyderabad hub to Tirupati. The airline’s Air Operators Permit (AOP) was changed to the scheduled commuter operator (SCO) category in May 2017, allowing the carrier to operate flights to other regions of India under the government’s UDAN Regional Connectivity Scheme. The Airline quickly established itself as a prominent player in India’s domestic aviation sector. Known for its excellent customer service, Trujet steadily expanded its routes within the country, connecting previously underserved regions with ATR 72 – 500 & 600’s and contributing to the growth of regional connectivity. However as the pandemic struck, Trujet too could not remain untouched and finally on 15 February 2022, TruJet ceased all operations owing to financial crisis.

NS Aviation’s Expertise

NS Aviation brings with it an extensive background in the aviation industry. Over the years, NS Aviation has built a reputation for reliability, efficiency and safety.

Isha Ali NS Aviation
The charismatic Isha Ali, Vice Chairperson, NS Airline speaking at the Taj Meet after acquiring 85% stake in erstwhile TruJet (Photo credits: Nagara Gopal)

Of particular interest are the founders of NS Airline. The ever daunting Dr. Mohammed Ali, happens to be a visionary and has been associated with Aviation for the past 2 decades. A Cardiothoracic surgeon from Philadelphia, USA, he has been a well known and respected figure worldwide. He was one of the founder partners in an overseas airline in 2001, which he later sold off in 2017. and has been a global Investor in Aviation space since early 2000’s.

The charismatic Ms Isha Ali who announced the investment deal at the Taj meet, wears many a hats. A Financial Engineer, Entrepreneur and an Aviation Enthusiast, Ms Isha has been specifically known to boost company bottom lines and enhance profitability, multifold.  As an entrepreneur Ms Isha earned huge accolades for having established a life-saving medical oxygen manufacturing unit during the pandemic. With a coveted Bachelors in Computer Engineering and Masters in Quantitative Finance from the USA, Ms. Isha Ali had earlier launched a FinTech start-up single-handedly, that became the second-largest company of America in it’s domain.

The takeover by NS Aviation under the able management and backing of these two stalwarts of Aviation Dr Mohammed and Ms Isha, is bound to raise the bar by a few notches, in the already competitive aviation industry. The airline under their mentorship will be able to benefit with access to their wealth of knowledge and expertise, ensuring the airline’s growth while maintaining international standards.

Benefits of the Partnership

  1. Enhanced Safety Procedures: NS Aviation’s expertise will significantly contribute to improving the Airline’s safety protocols. By adopting best practices from across the globe, the airline will bolster passenger confidence and reaffirm its commitment to safety.
  2. Fleet Expansion: The partnership is expected to lead to the introduction of new aircraft into Trujet’s fleet. With NS Aviation’s backing, the Airline will be in a stronger financial position to invest in state-of-the-art planes, including the latest technology and more fuel-efficient models. As revealed by Vice Chairperson Ms Isha Ali, NS Aviation aims to compete with established airlines by launching a fleet of 100 Airbus 320 Neo aircraft. Initially, the airline will primarily focus on domestic operations, with key metropolitan cities such as Mumbai, New Delhi, Kolkata and Hyderabad as primary destinations. This expansion will enable the Airline to serve more destinations and cater to a growing customer base. In the course of it’s operations, the Airline also has plans to incorporate 10 Airbus aircraft specifically for international cargo operations. Piggyback riding on Trujet’s AOP, the launch of International operations will be possible without waiting for the mandatory 5 yrs / 3 yrs of operations. Trujet started it’s scheduled domestic flights in 2017 and already fulfills the criterion for going international.
  3. Industry Synergies: The partnership allows for the sharing of resources, knowledge, and technology between the two companies. It will foster innovation helping the rechristened airline to stay at the forefront of emerging trends and maintain a competitive edge in the Indian aviation industry.
  4. Improved Connectivity: The Airline is expected to result in improved connectivity for passengers. Leveraging NS Aviation’s expertise and global network, the Airline will be able to tap into new markets and establish routes that were previously untapped. Not only does the Airline plan to expand to 100 airbus, it also plans to bring in helicopter services, private charters, air ambulance, smaller aircraft like King Air B200, Learjet, Falcon etc and many other aviation services in the next 3 years following the launch. This will not only benefit travelers but also boost regional connectivity and economic growth in areas that have been traditionally underserved.

Challenges and Opportunities

While Trujet’s collaboration with NS Aviation brings numerous benefits, challenges are also on the horizon. Managing the takeover, aligning operational procedures, and coordinating cultures will demand careful planning and execution. However, the combined expertise and experience of both entities provide them with a great opportunity to streamline operations and elevate the quality of service provided.

Conclusion

Trujet’s new avatar as a result of it’s partnership with NS Aviation marks a significant milestone in the Indian aviation industry. With NS Aviation’s decades of experience and expertise, the Airline can leverage international standards, safety protocols, and advanced technology to expand its operations and strengthen its position as a formidable airline of choice. The collaboration serves as a testament to the growing potential and competitiveness of the Indian aviation sector. As the skies open up to new opportunities, passengers can look forward to improved connectivity, enhanced safety, and an enriched travel experience.

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How Did Sustainability Policies Affect Office Cleaning Industry?

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office cleaning

Like with most other industries, the green trend greatly impacted how providers perform office cleaning. If you take a look at supermarket isles, you’ll notice that most products are now altered to contain more environmentally-friendly substances. Despite their effectiveness, strong cleaning chemicals are almost a thing of the past.

Besides the commercial products, our newly-found environmental consciousness also affected the other aspects of the cleaning business. For example, brands are now paying a lot of attention to how they consume water when cleaning offices, warehouses, and other industrial facilities.

Following this trend is every bit as important for clients as it is for service providers. Commercial entities are unwilling to cooperate with office cleaners who aren’t environmentally conscious and jeopardize their employees by using strong chemicals. Furthermore, by forcing cleaners to cut down on products and water, clients can even save money on cleaning services.

The need for change

Environmental trends can almost be characterized as a natural progression. Back in the day, these businesses created 40,000 truckloads of waste per year, which made it evident that a switch to a cleaner solution was necessary. Savvy cleaning companies slowly started shifting toward sustainable options some 20 years ago, and today, we see the culmination of that evolution.

“Green cleaning is, by far, the biggest trend in the commercial cleaning industry,” claims office cleaning by Compass Cleaning Solutions. Even though some companies were reluctant to switch to a socially-responsible model, they were eventually forced to do so by the clients and other stakeholders.

The most significant change came in the form of chemicals cleaning brands use. The trend wasn’t necessarily spearheaded by the cleaning businesses; it was something that was forced upon them by the market. Still, cleaning brands can be satisfied with this change as it helps protect 3 million employees working in this industry.

Another massive change came in the way service providers utilize water. Some providers managed to cut down on their consumption by introducing new technology, while others simply started using less water for everyday tasks. 

Reducing and removing strong chemicals

One of the bigger issues in the past was that companies didn’t know much about the chemicals they were using. Many brands used ingredient designations that didn’t make sense or that the general public was unfamiliar with. So, they could easily slip substances that were dangerous for consumers.

The first big change came with better regulation and, specifically, labeling. Still, that doesn’t mean that cleaning companies don’t have their fair share of challenges when choosing a product for their daily operations. As most of these cleaning mixtures have at least some dangerous substances, the providers are often forced to choose between two evils.

Environmentally-friendly brands start their selection by comparing the product’s ingredients against a list of officially harmful substances. As most of the products are made from petroleum, which is classified as volatile organic compounds or VOC, this is usually the thing cleaning companies focus on.

Some companies have a simple solution to this issue. They use OSG systems (on-site generation), which use a combination of water and salt. The two substances are completely harmless to users, yet office cleaners can get similar results when using volatile chemicals.

Going with environmentally-friendly consumables

Besides trying to eliminate strong chemicals, cleaning brands are also now focusing on environmentally-friendly items. For example, there’s a trend of eliminating single-plastic use in the industry. Given that a single piece of plastic takes more than 450 to dissolve, it becomes obvious how this slight shift can make a major long-term change.

The companies are switching in droves to multiuse products such as microfiber cloths or refillable spray bottles. The difference can also be seen in the type of paper they use; office cleaning businesses now use recycled products that are much better for the environment

Introducing green equipment

Nowadays, you have a lot of commercial and private cleaning equipment that use environmentally-responsible technology. For example, you can buy machines that use water as the single cleaning ingredient. Many devices now have HEPA filters that remove harmful particles that companies leave after cleaning premises.

It’s also common for cleaning companies to use automated machines with minimal carbon footprint. According to scientists, some of these robotic products can reduce air pollution by more than 90% while also reducing energy consumption by 97% and water pollution by 77%.

Aside from this equipment, cleaning companies can also consider dispensers that dilute chemical products to limit waste.

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High Time India Starts Treating Bouncing of Cheques As Civil Offence Instead of Criminal

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Bouncing of Cheque

The bouncing of cheques, also known as dishonored cheques, is a prevalent issue in various jurisdictions. Traditionally, many countries have treated this offense as a criminal act, imposing severe penalties including imprisonment. However, with the advent of cashless transactions, promoted by none other than PM Narendra Modi himself, there is a growing chorus to convert bouncing of cheques into a civil offense. This article aims to justify why making the bouncing of cheques a criminal offense should be removed and instead be treated as a civil offense.

Principle of Proportionality

One of the primary reasons for advocating the removal of criminalizing the bouncing of cheques is the principle of proportionality. The act of issuing a bounced cheque is often unintentional, arising from circumstances such as insufficient funds or a mismatch of signatures. Criminalizing it can result in disproportionate punishments, such as imprisonment, which do not align with the nature of the offense and can have severe consequences on individuals’ lives.

Encouraging Economic Activity

Treating the bouncing of cheques as a civil offense would create an environment that fosters economic activity. Imposing criminal sanctions on individuals who inadvertently issue a bounced cheque can discourage entrepreneurial initiatives and economic participation. Colossal waste of time, money and effort happens when all Directors on the board of a Company are made to plead like petty criminals, seeking bail or exemptions, at the mercy of the judiciary. By making the offense civil, it allows for a flexible approach in addressing such incidents, focusing on restitution and promoting business growth.

Alternative Dispute Resolution

Civil proceedings provide the opportunity for alternative dispute resolution mechanisms, such as negotiation, mediation, or arbitration. These methods allow parties to resolve issues more efficiently, amicably, and without overwhelming the criminal justice system. Emphasizing civil liability encourages parties to engage in mutually beneficial negotiations and reach settlements, potentially avoiding long-drawn-out legal battles.

Rehabilitation instead of Punishment

Treating the bouncing of cheques as a civil offense emphasizes rehabilitation and corrective measures instead of punishment. Criminalizing offenders may label them as criminals and hinder their ability to reintegrate into society. In contrast, civil penalties, such as fines or restitution, provide an opportunity for individuals to rectify their actions, learn from their mistakes, and contribute positively to the economy.

Reducing Burden On Companies

The NI Act ties down entire lot of company directors as accused and leaves them at the mercy of the Judiciary. The Me Lords are more than happy to flex their muscles and power and through arbitrary and coercive Orders leave these directors or owners at the mercy of the Police. After claiming it’s own share of pie, the system then ensures that these Directors or Heads of Organizations are produced, some forcibly in handcuffs, before the Judges as petty criminals. Many a times these individuals may not even be directly related to a dishonored cheque. As the proceedings demand, and those who are lucky not to land behind bars, these business heads and Entrepreneurs are often seen waiting entire day at the Courts for their turns. The business loss and wasted time having literally NO MEANING for the Lordships or the government.

Reducing Burden on Criminal Justice System

Introducing criminal charges for bounced cheques places an additional burden on an already congested criminal justice system. Courts are inundated with cases, and utilizing their limited resources to prosecute individuals for non-violent economic offenses can hinder the timely resolution of more serious criminal matters. Shifting these cases to the civil courts streamlines the legal process and allows for prioritization of more critical criminal cases.

International Trends

Several countries around the world have already moved towards treating bounced cheques as a civil offense. For instance, in the United Kingdom, Canada, and many European Union countries, the focus is on civil remedies, with penalties enforced through civil courts or mechanisms specific to banking and financial regulations. This shift aligns with the trend of modernizing legal systems to promote efficiency and fairness.

Conclusion

Given the principle of proportionality, the benefits of encouraging economic activity, the opportunities for alternative dispute resolution, the focus on rehabilitation, the reduction in burdens on the criminal justice system, on the companies and their board of directors and the alignment with international trends, it is justifiable to remove the criminal aspect of the bouncing of cheques and instead treat it as a civil offense. This approach would strike a fair balance between addressing the harm caused and allowing individuals to rectify their actions while promoting economic growth and efficiency.

Also Read:

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List Of Top 10 Avionics Companies In The World

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Avionics Companies

The list compiled herein by N4M Media represents some of the most renowned Avionics companies globally, each making significant contributions to advancing avionics technology in the aviation industry. It’s important to note that rankings can vary based on different factors, such as revenue, market share, and industry recognition.

1. Honeywell Aerospace

  • Headquarters: Phoenix, Arizona, United States
  • Countries: Operates in over 70 countries
  • Employees: Approximately 131,000 globally
  • More Details: Honeywell Aerospace is a prominent avionics company that offers a wide range of products and services, including flight controls, navigation and guidance systems, and aircraft communication systems. With its extensive global presence and a highly skilled workforce, Honeywell Aerospace focuses on developing advanced avionics solutions to enhance the safety, efficiency, and performance of aircrafts.

2. Thales Group

  • Headquarters: Paris, France
  • Countries: Operates in over 56 countries
  • Employees: More than 80,000 worldwide
  • More Details: Thales Group is a leading avionics company known for its innovative solutions in aerospace, defense, and security domains. Their avionics offerings encompass aviation electronics, flight management systems, cockpit displays, and other crucial components. Thales Group prioritizes research and development to deliver cutting-edge avionics solutions to their global customer base.

3. Collins Aerospace (Raytheon Technologies Corporation)

  • Headquarters: Cedar Rapids, Iowa, United States
  • Countries: Operations across numerous countries
  • Employees: Approximately 70,000 globally
  • More Details: Collins Aerospace, recently merged with Raytheon Technologies Corporation, is a renowned provider of avionics systems, aircraft interiors, and a wide array of aerospace solutions. They specialize in innovative cockpit technologies, navigation systems, flight control systems, and communication systems. Their advanced avionics solutions significantly contribute to the aviation industry’s safety and efficiency.

4. Garmin Ltd.

Avionics Companies - Garmin
  • Headquarters: Schaffhausen, Switzerland
  • Countries: Operates in numerous countries worldwide
  • Employees: Over 16,000 globally
  • More Details: Garmin is a well-established avionics company celebrated for its expertise in GPS navigation systems, flight displays, and integrated avionics suites. Their avionics products cater to various aircraft types, including general aviation, helicopters, and business jets. Garmin’s commitment to offering reliable and comprehensive avionics solutions has earned them a strong reputation in the industry.

5. Rockwell Collins (Collins Aerospace, Raytheon Technologies Corporation)

Avionics Companies - Rockwell Collins
  • Headquarters: Cedar Rapids, Iowa, United States
  • Countries: Operations across multiple countries
  • Employees: Around 70,000 worldwide
  • More Details: Rockwell Collins, now part of Collins Aerospace under Raytheon Technologies Corporation, is a leading avionics company known for its comprehensive range of avionics and communication systems. Their offerings include integrated avionics suites, communication systems, situational awareness systems, flight control systems, and more. Rockwell Collins focuses on delivering state-of-the-art avionics solutions to improve aircraft performance, safety, and connectivity.

6. Safran Electronics & Defense

Safran Electronics - Avionics
  • Headquarters: Paris, France
  • Countries: Presence in various countries worldwide
  • Employees: Approximately 14,000 globally
  • More Details: Safran Electronics & Defense is a prominent provider of avionics systems, optronics, navigation systems, and aircraft electrical systems. Their avionics solutions cover a wide range of applications, including commercial aviation, defense, and space industries. Safran Electronics & Defense’s cutting-edge avionics technologies contribute to enhancing the efficiency and safety of aircraft operations.

7. BAE Systems Inc.

  • Headquarters: London, United Kingdom
  • Countries: Operates in multiple countries globally
  • Employees: Around 85,800 worldwide
  • More Details: BAE Systems Inc. is another major in the list of avionics companies. Dealing in aerospace and defense, the company offers a comprehensive portfolio of avionics solutions. Their avionics capabilities span across flight instruments, displays, vehicle management systems, communication and navigation systems, and more. BAE Systems Inc. focuses on developing technologically advanced avionics solutions to meet the demands of modern aircraft platforms.

8. L3Harris Technologies Inc.

  • Headquarters: Melbourne, Florida, United States
  • Countries: Operations in numerous countries
  • Employees: More than 50,000 worldwide
  • More Details: L3Harris Technologies Inc. is a reputable avionics company specializing in integrated avionics systems, cockpit and mission displays, flight management systems, and other critical avionics components. Their avionics solutions cater to various aircraft types, including military aircraft, business jets, and helicopters. L3Harris Technologies Inc. strives to deliver innovative avionics solutions that address the complex requirements of today’s aviation industry.

9. Leonardo S.p.A.

  • Headquarters: Rome, Italy
  • Countries: Operates in various countries globally
  • Employees: Approximately 49,000 worldwide
  • More Details: Leonardo S.p.A. is a well-recognized name in the list of avionics companies that provides advanced avionics systems for military, civil, and commercial aircraft. Their avionics solutions encompass flight control systems, airborne mission systems, radar systems, and communication systems. Leonardo S.p.A.’s commitment to technological advancements and research ensures that their avionics solutions remain at the forefront of safety and performance.

10. United Technologies Corporation (UTC) Aerospace Systems (Raytheon Company)

  • Headquarters: Farmington, Connecticut, United States
  • Countries: Operations across multiple countries
  • Employees: Over 200,000 globally
  • More Details: United Technologies Corporation, now a part of Raytheon Company, houses UTC Aerospace Systems, a key player in avionics and aerospace solutions. Their avionics portfolio includes electrical power generation and management systems, flight controls, landing gear systems, sensors, and more. Through innovation and collaboration, UTC Aerospace Systems develops robust avionics solutions that support the evolving needs of the aviation industry.
Also Read:

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Airline Employment Bonds – A Tool To Exploit Pilots & Aircraft Engineers By Playing With Their Careers

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Parked Aircraft

Estimated reading time: 6 minutes

In recent years, the aviation industry in India has witnessed tremendous growth, resulting in increased demand for skilled pilots and engineers. However, concerns have been raised about how airlines are leveraging employment bonds and agreements to jeopardize the careers of young professionals. These bonds, which often come with stringent conditions and hefty penalties, have become a contentious issue, raising questions about fairness and exploitation in the industry. This article will delve into the negative impact of employment bonds and agreements on young pilots and engineers in India.

The Unscrupulous Practice:

Many airlines in India require budding pilots and engineers to sign employment bonds as part of their recruitment process. These bonds typically bind the employees to the airline for a specified period, ranging from 3 to 5 years. While such agreements may appear reasonable at first glance, they often come with unfair clauses that hold professionals captive with little to no control over their careers.

Bond Conditions & Consequences:

One of the most contentious aspects of these employment bonds is the financial penalty attached to breaking the agreement. Airlines impose exorbitant fees on employees who choose to leave before the specified period. These penalties, ranging from INR 15 to 25 lakhs, can be crippling for young professionals who have already invested significant amounts in their training and education.

Furthermore, the airlines often implement one-sided terms that give them the power to unilaterally extend the bond period. This manipulative practice effectively traps skilled professionals within a company, restricting their options for career growth and advancement. This lack of mobility and opportunity for professional development stifles innovation and creates an environment of exploitation.

In this fight to retain employees, the companies keep innovating new clauses and terms and conditions, to pin down it’s trained manpower. In the case of a Delhi based MRO, the practice is that the individual engineers being sent for a Type Training Course in India or abroad, costing anywhere between 10 to 20 Lacs, are made to take a loan on their own names. The amount is then transferred to the Company which then starts paying the EMI’s after getting a 3 to 5 year bond signed by the Employee. The fairness here goes for a toss as the Company has the liberty to kick out the employee or simply shut shop due to whatsoever reason, while the unfortunate individual will then have to fend for his loan with no recourse to any compensation or guarantee.

In some cases where the Employee dares to breach the contract and tries to join another company, then in addition to the legal recourse that the companies have, the latter often tend to resort to unfair means to harass the individual. In one such instance, the owner of a Gurgaon based NSOP got irked as one of it’s Pilot, Mr Sidharth (name changed) joined another Delhi based company. In order to victimize the Pilot, the NSOP wrote to the BCAS claiming that the Employee has left the company without surrendering his Biometric Airport Entry Pass (BAEP) even though this was not true. BCAS in turn, in it’s own wisdom wrote to the new employer citing the previous owner’s mail and asking the new owner to freeze the employment, thereby harassing the individual to the hilt

As a result of these Employment bonds and agreements, many complaints and grievances by aviation professionals keep surfacing from time to time. While most go unnoticed and are left to the individuals and their companies to sort out, there are only few that come into the glare and get blown up. An example of this could be seen as reflected in this tweet by Yeshwanth.

Devastating Impact on Careers:

The consequences of these unfair bonds are far-reaching and devastating for young pilots and engineers. Firstly, it restricts their ability to switch jobs or explore better opportunities, limiting their career growth and financial stability. Moreover, stagnation in a single organization may lead to skill degradation in an industry where continuous learning and improvement are essential.

The bonds also disproportionately impact those who have taken loans for their training. Young professionals find themselves in a catch-22 situation, unable to switch jobs to better their financial prospects and still burdened with the financial obligations from their training loans. This misguided practice undermines the faith and trust that young professionals place in the industry.

Challenging the Unfair System:

There have been increasing calls to reform this exploitative system. Aviation bodies, professional associations, and lawmakers have been urging airlines to review their employment bonds and agreements to make them more equitable.

In the same context, a complaint was filed with DGCA by Spice Jet Ltd citing non adherence to Notice periods by Pilots resigning and leaving the Company. The Airlines termed it as serious breach of CAR Section 7, Series X, Part II wherein the guidelines for serving the notice period have been mentioned.

DGCA dismissed the complaint, on the grounds of it being sub judice before the High Court of Delhi vide Writ Petition W.P.(C)12387/2009 and CM No’s 12813/200925575/2017 filed by the Society for Welfare of Indian Pilots v/s UOI and Ors. Additionally, it was cited that the Delhi High Court vide it’s Interim Order dated 25 July 2018, had restrained the DGCA to not take any coercive steps subject to concern of parties complying with the terms of the contract entered between the pilots and the airlines during the pendency of the writ petition. A copy of the Order is placed here:

Several other legal challenges keep getting filed by aggrieved pilots and engineers, seeking to address the issue and create a fairer environment for young pilots and engineers.

The Way Forward:

To create a sustainable and nurturing environment for young professionals, airlines in India need to adopt fairer practices. Employment bonds should be revised to strike a balance between retaining skilled employees and ensuring their career growth. Reasonable exit clauses, fair financial penalties, and transparent policies regarding bond extensions would provide much-needed relief to young pilots and engineers.

Conclusion:

Furthermore, government intervention might be necessary to regulate the employment practices of airlines. Establishing guidelines that protect the rights of young professionals and limit the exploitative nature of employment bonds would create a healthier and more trusting environment within the industry.

The exploitative use of employment bonds and agreements by airlines in India has had a detrimental impact on the careers of young pilots and engineers. The stringent conditions, huge financial penalties, and lack of mobility have left many feeling trapped and exploited. It is crucial for industry stakeholders, policymakers, and regulatory bodies to work together to address this issue and ensure a fair and supportive environment for the professionals who power India’s aviation industry.

Also Read:

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Great Tips to Consider When Selling Handmade Products Online

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Selling handmade products online

If you’ve made the decision to try and sell some of your own handmade crafts online, whether this is as a fun side hustle or even as a main form of income, then knowing what you’re doing is vital. So, good on you for taking the time to look online for some extra information!

To help you out, this article aims to highlight some important tips that you should keep in mind when selling your handmade products and stuff online.

Create a Strong Brand

First and foremost, your brand is the greatest asset you could ever have when selling products online. Not only does it work as a fantastic marketing tool for your business that can allow you to reach out to and develop a strong market base, but it also serves as a memorable symbol of your business that helps to draw customers back again and again.

In short, your handmade products brand is a vital element of online business that can allow you to develop a strong presence online— this is important when trying to stand out above the plethora of products that customers might find online.

Creating Loyal Customers

Of course, making a sale is one of the best things that can happen to your business, which is exactly why you should do everything you can to turn your one-time customers into loyal, repeat customers.

After all, if a customer is willing to purchase your handmade products once, then there’s a solid chance that they’d be willing to do so again. As a result, anything you do to further incentivize them to return to your store can help to strengthen the chances that they will return and make another purchase.

One of the most common ways to do this is by providing customers with coupons for discounts on future purchases. Of course, there’s no rule against being creative in how you draw your customers back—in fact, you might find that creative approaches will often yield better results here since customers value novelty.

Use the Right Tools

Even if you taught yourself everything you know when you’re selling products online, you’ll want to be sure that you’re doing things right; this means that you’re going to want to invest in the right products.

For example, if you regularly shape leather as a part of your working processes, then you should take the time to invest in a high-quality heat gun from heatgun.com or a similar retailer that provides high-quality products. After all, properly shaping leather is far easier and often yields better results if you’re doing it with a good-quality heat gun.

There are countless other scenarios where the right tools can help to both make your job easier and ensure that the result of your work is far better, which is exactly why you want to make sure that you have the right tools for the products you’re making.

Keep at It!

Last but certainly not least, remember that success can sometimes take a long time. It can be easy to get discouraged when you don’t find the kind of traction you were hoping for online, but not everyone succeeds right away.

In reality, the best way to find success online is to keep up with it. If you’re consistent and work hard, you can grow your following organically, and often, the communities that grow like these are far more loyal than the kind that appear overnight. So, don’t give up!

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Shubi Husain Among Awardees Of India’s National HealthCare Awards 2023

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Audience Clapping - National Healthcare awards

Business Mint unveiled the prestigious Nationwide HealthCare Awards 2023 on September 22nd, 2023. These awards were instituted to acknowledge and celebrate outstanding achievements across various levels within the healthcare industry. They aim to honor those who have demonstrated exceptional strength, innovation, expertise, and a vision for advancing healthcare, ultimately enhancing its overall performance and affordability. Over time, the Nationwide Awards have become the benchmark for recognizing contributions to the nation’s healthcare sector based on assessment criteria such as innovation, impact, sustainability, and scalability.

The Nationwide HealthCare Awards 2023 spotlight healthcare establishments like hospitals, clinics, and healthcare organizations that have surmounted challenges and made significant differences in their patients’ lives, particularly in the face of the disruptions caused by the COVID-19 pandemic. The 2023 edition of these awards was a significant milestone, with over 500 nominations received.

The global healthcare landscape has been adversely affected by COVID-19, prompting many institutions to reevaluate and adapt their patient care and staff safety initiatives.

To pay tribute to these brilliant minds, Business Mint has compiled a roster of healthcare companies, individuals, and non-profit organizations that have excelled in their missions. You can find the list of awardees and their impactful initiatives here:

 -Praggatti Rao – Founder Director & Principal Consultant – Educoncepts India Initiatives – Most Promising Women Entrepreneur of the Year – 2023, Haryana in Mental Health & Well Being Category

-Dr Ranjan Modi – Cardiologist – Medical Excellence in Cardiology – 2023, Delhi

-Nayan Ahluwalia – Laparoscopy, Proctology & Cardio-Thoracic Marketing ( India & Subcontinent ) – KARL STORZ – Most Prominent Healthcare Marketing Leader of the Year – 2023, Delhi

-Dr Dhanpal Sadan – BDS, MDS,FIOS Endodontist (Root Canal Specialist) – SS Multi Speciality Dental Hospital – Outstanding Dental Practitioner of the Year – 2023, Nizambad

-Dr UMAR MUSHIR – Consultant Psychiatrist, Psycho-sexual disorders and De-addiction specialist- Apollomedics Super Speciality Hospital – Outstanding contribution in the field of Psychiatry and Behavioural Medicine -2023, Lucknow

-Kutumb IVF and Fertility Clinic – Most Promising IVF & Fertility Clinic of the Year – 2023, Vizag

-Dr T Vadivel – Founder – Dr Vels Regenerative Therapy Pvt Ltd – Excellence in Immunotherapy & Stem Cell Therapy – 2023, Hyderabad

-Dr M. N. Sudheer Kumar Reddy – Consultant Pediatric Nephrologist – Blossoms Mother and Children’s Hospital – Outstanding Contribution in Pediatric Nephrology & Child Healthcare – 2023, Guntur

Shubi Husain – Founder – Health Sanctuary – Inspirational Leadership in Fitness and Nutrition – 2023, New Delhi

-Global Pharma Tek – Most Prominent Company for Clinical Research & Trading and Distribution of Pharmaceutical Raw materials – 2023, New Jersey

-HIWAGA – Most Promising Luxury Beauty Clinic of the Year – 2023, Andhra Pradesh

-DR RJ’s White Smile Cosmetic & Family Dental Clinic – Best Emerging Cosmetic Dental Clinic – 2023, Kochi

-Dr Snigdha Gowd – Chairman & CEO – Dr.Gowd’s Dental Hospital – Most Promising Orthodontist of the Year – 2023, Hyderabad

-Deepti Nadiminti – Founder & Director – Deepti Nadiminti MakeUp & Cosmetic Studio – Most Promising Skincare Professional – 2023, Hyderabad in Permanent MakeUp & Cosmetic Industry

-Dr Rajarathna Thangavel – Founder & Director- EYEMENTOR Dr.Rajarathna – Most Inspiring Educator of the Year – 2023, Chennai in Medical Education Category

-BPK Global Solutions Private Limited – Most Promising Company for Healthcare Management Services & HR Solutions – 2023, Hyderabad

-Maximus Physiotherapy and Rehabilitation – Best Emerging Physiotherapy & Rehabilitation Center – 2023, Bengaluru

-Dr.Hajira Nazeer – Cosmetic Dental Surgeon and Cosmetologist – Richmond Dental and Aesthetic Centre – Most Prominent Cosmetic Dental Surgeon & Cosmetologist of the Year – 2023, Bengaluru

-YORE Care (A product by Advance Digital Solutions India Pvt. Ltd.) – Excellence in Healthcare Technology Solutions – 2023

-Qemiq Biotics – Outstanding Growth and Impact in the Nutraceutical Industry – 2023

Satwika Life Sciences – Special Awardee

-Harmony Orthodontics – Excellence in Orthodontic Care and Smile Transformation – 2023, Andhra Pradesh

-Dr. Sri Ramulu Kadiyala – Consultant Interventional cardiologist – KIMS Hospital, Gachibowli – Medical Excellence in Interventional Cardiology – 2023, Hyderabad

-Dr Sandeep Reddy – Consultant – General Medicine – KIMS Hospitals – Most Promising Consultant of the Year -2023, Hyderabad in General Medicine Category

-SNEHA TIWARI – Sports Physiotherapist with BCCI Domestic Women’s Cricket Team – Most Inspiring Women of the Year – 2023, Hyderabad in Sports Physiotherapist Category

-Wellknox – Comprehensive Best Medical Rehabilitation Center of the Year – 2023, Hyderabad

-Dr Kirti Gowd – Director – Dr Gowds dental hospital – Excellence in Orthodontic Care – 2023, Hyderabad

-Dr. Vikas Gowd – Dentist & Dental Office – Most Admired Cosmetic Dentist & Implant Specialist of the Year – 2023, Hyderabad

-KVN SRINIVAS – Exceptional Contribution to Wellness Entrepreneurship – 2023

-Dr. Murahari Penkulinti – MS ORTHO, FELLOW IN SPINE SURGERY – KIMS HOSPITAL, GACHIBOWLI – Outstanding Senior Consultant Spine Surgeon – 2023, Hyderabad

-Physioshine Physiorehab Centre – Most Promising Physio Rehab Center of the Year – 2023, Hyderabad

-BCR OXY AIR Enterprises – Most Promising Medical & Industrial Oxygen Suppliers of the Year 2023, Hyderabad

-Bite Blocks Dental® – An Advanced Dental Care Center – Most Prominent Dental Clinic of the Year – 2023, Hyderabad

-Mohan Dental Clinic – Outstanding Dental Clinic of the Year – 2023, Hyderabad

-Dr Vijaya Lakshmi Macherla – Founder – Vijaya Dental – Most Promising Smile Design Dentist of the Year – 2023, Hyderabad

Vinay Kanth Korapati, the Founder of Business Mint, extended his congratulations to all the awardees. He emphasized that each one of them had exhibited excellence and embodied the highest standards of medical ethics and procedures. The Nationwide HealthCare Awards – 2023 serves as Business Mint’s humble way of expressing gratitude to these inspirational individuals and groups. These accolades will empower them further in navigating through challenging times and continuing to drive their missions forward.

Business Mint serves as a comprehensive platform dedicated to advancing organizations and entrepreneurs through a research-driven recognition approach. It provides a space for associations and entrepreneurs alike to receive recognition for their dedication and hard work. The primary objective is to acknowledge exceptional business ideas and ventures and the remarkable individuals behind them, no matter the hurdles they face in bringing these ideas to fruition.

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The Current State Of Startup Funding in India

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Strategising for Startup Funding

Navigating the Funding Winter in 2023

In the post-COVID economy, India’s startup scene has been a hotbed of innovation and economic promise. A surge in unicorns. Rapid growth. The government lending strong support via initiatives – almost two years ago, it felt like the sky was the limit for Indian startups. However, the recent landscape tells a more intricate tale.

Come, let’s peek at the current state of startup funding in India.

The cold reality

The most pressing issue gripping the Indian startup ecosystem right now is what experts are calling the “Funding Winter.” In the first half of 2023, it managed to raise just $5.46 billion. Sounds substantial, but in reality, it is quite a modest number considering a staggering 68% drop from the same period in 2022, when investments soared to a remarkable $17.1 billion.

Decreasing revenues, burgeoning losses, and the need to discover sustainable scaling strategies have all contributed to the ongoing funding crisis. Additionally, the slowdown in late-stage funding has had a ripple effect, where mid-stage investors are grappling with the shifting dynamics.

Even India’s unicorn club, comprised of startups valued at over $1 billion, has not been impervious to these challenges. The most recent addition to this exclusive club was Tata 1 MG in September 2022. The tightening of purse strings by investors and founders resorting to layoffs as a cost-cutting measure has further strained sentiments in late-stage companies. Well-known unicorns such as Ola, OYO, and Unacademy have been among those forced to reduce their workforce.

Hope amidst challenges

The untapped capital reserves held by venture capitalists do provide a glimmer of hope in the current scenario. Many active VC firms in India have secured new and larger funds in the past year, signalling the potential for increased investments in the near future. To restore investor confidence, startups must focus on achieving profitability, particularly at the late stage. According to a report, 55 out of 74 unicorns reported a cumulative operating loss of $5.9 billion in FY22, double the loss from the previous year.

The Startup India initiative already provides a supportive framework to catalyse and build a strong and inclusive ecosystem. However, there is room for improvement in creating awareness of government incentives, expanding credit disbursement to priority sectors, and promoting outreach to Tier 2 and Tier 3 cities.

The way forward

While the Funding Winter has slowed the pace of investments, the potential within the ecosystem remains substantial. The sector must adapt, prioritise profitability, and explore alternative funding sources. Easing financing and tax breaks for both domestic and foreign investors could also enhance opportunities for startups. Hopefully, with the right strategies and continued government support, the nation can weather the economic storm and continue towards growth.

Also Read:

The post The Current State Of Startup Funding in India appeared first on N4M (News4masses).

All About Setting Up Business In India By A Foreign (Alien) Company

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DLF Building, India

Given India’s rapidly growing market, the country’s investment potential has been attracting an unending stream of foreign (alien) companies to establish their presence in India. Over the last few years, initiatives have been taken to ensure that establishing a business in India is more simple and foreign companies are encouraged to invest in the country. Drawing parlance with US terminology, an ‘alien company’ is a company or corporation that was created in another country but is doing business in the host country. This article lays down the exact requirements and the options that are available for a Foreign Company, that has decided or is exploring to come and do business in India.

Foreign investment in India is governed by the Foreign Direct Investment (FDI) policy announced by the Government of India and the provisions of the Foreign Exchange Management Act (FEMA) 1999. The Reserve Bank of India (RBI) has
issued a notification which contains the relevant regulations. Foreign investment is freely permitted in almost all sectors. Foreign Direct Investments (FDI) can be made under two routes—the Automatic Route and the Government Route. Under the Automatic Route, the foreign investor or the Indian company does not require any approval from the RBI or the Government of India for the investment. Under the Government Route, approval by the Foreign Investment Promotion Board (FIPB), the inter-ministerial body responsible for processing FDI proposals and making recommendations for Government approval, is required.

Prohibited areas

Foreign investment in any form is prohibited in a company, a partnership firm, a proprietary concern or any entity, whether incorporated or not (such as Trusts) which is engaged, or proposes to engage, in the following activities:

  • Business of a chit fund, or
  • A Nidhi company, or
  • Agricultural or plantation activities, or
  • Real estate business, or construction of farm houses, or
  • Trading in Transferable Development Rights (TDRs).

Please note that real estate business does not include the development of townships, construction of residential/commercial premises, roads or bridges. To further clarify, partnership firms/ proprietorship concerns having investments as per FEMA regulations are not allowed to engage in the print media sector.

In addition to the above, investment in the form of FDI is also prohibited in certain sectors such as:

  • Retail trading.
  • Atomic energy.
  • Lottery business.
  • Gambling and betting.
  • Agriculture (excluding floriculture, horticulture, development of seeds, animal husbandry, pisciculture and cultivation of vegetables, mushrooms etc. under controlled conditions and services related to agriculture and allied sectors) and plantations (other than tea plantations).

Mode of Investment

Indian companies can freely issue equity shares / convertible debentures and preference shares subject to valuation norms prescribed under FEMA regulations. Issue of other types of preference shares such as non-convertible, optionally convertible or partially convertible are considered debt. As such, the guidelines applicable for External Commercial Borrowing (ECB), viz. eligible borrowers, recognized lenders, amount and maturity, end use stipulations and so on, will apply to such issues. Since these instruments are denominated in rupees, the rupee interest rate will be based on the swap equivalent of the London Inter-Bank Offered Rate (LIBOR) plus the spread permissible for ECBs of corresponding maturity. As far as debentures are concerned, only those which are fully and mandatorily convertible into equity, within a specified time would be reckoned as part of equity under the FDI Policy.

BUSINESS STRUCTURE ALLOWED

Joint Ventures vs Wholly Owned Subsidiary

Joint Ventures

Foreign companies can establish a business by forming a strategic partnership
with business entities in India. International joint ventures have become essential wherein two business entities join forces to achieve a commercial objective. Joint ventures are becoming the ideal way to enter industries where 100% of FDI is not permitted in India.

Joint ventures are a relatively a low-risk route opted for by foreign companies wishing to enter the Indian market, provided these companies conduct appropriate due diligence on the Indian partners prior to forming an alliance. It
allows the foreign investor to benefit from the Indian partner’s established market and consumers, distribution channels, local know-how and management.

Wholly Owned Subsidiary

By allowing foreign companies to establish wholly-owned subsidiary companies in India, the Indian market provides a convenient and beneficial business environment for these foreign entities. Foreign companies can set up wholly- owned subsidiaries by making 100% FDI in India through an automatic route (as defined previously) subject to the provisions of the Reserve Bank of India (RBI), Foreign Exchange Management Act, 1999 and the Act.

Requirements for Establishing a Company in India

Forming a new company provides flexibility and freedom as it can be structured in accordance with the requirements, objectives and obligations of both parties. A private limited company must have at least 2 (two) shareholders, while a public company should have at least 7 (seven) shareholders. Under the Act, it is a mandate that at least one director of every company is a resident of India [any person who has lived in India for more than 186 (one eighty-six) days is considered an Indian resident]. For a company to be registered, it must have an address in India. The legal jurisdiction applicable to the company will be determined by the city in which the company’s registered office is located.

Foreign companies can choose to establish a company with three directors, two being foreign nationals from the parent company and as a legal mandate, one being an Indian citizen. Further, as there is no requirement for minimum
shareholding by the Indian director, foreign companies or nationals have the freedom to hold 100% of the shares of the Indian company.

Branch Office

For a foreign company to establish a temporary presence in India, a branch office is an effective strategy. The branch office is an extension of a foreign company and can engage in commercial business as a representative of the parent company.
Businesses keen on setting up a branch office should meet the following criterion as prescribed by the RBI:

  • The applicant must be a body corporate incorporated outside India;
  • The net worth of the parent company must not be less than USD 100,000 or its equivalent;
  • The parent company should have a profit-making record during the immediately preceding five financial years in the home country.

Once established with the prior approval of the RBI, a branch office may remit profits of the branch outside India, subject to RBI guidelines and applicable taxes. Companies incorporated outside of India that are involved in manufacturing or trading are permitted to set up branch offices in India with the prior approval of the RBI. These branch offices are allowed to represent the parent company in India and carry out activities including, but not limited to, the following:

  • Export/import of goods.
  • Rendering professional or consultancy services.
  • Promoting technical or financial collaborations between Indian companies and parent companies.
  • Representing the parent company in India and acting as buying/selling agent in India.

Liaison Office

A liaison office serves as a communication link between the parent company, principal place of business or head office and entities in India, but it does not engage in any commercial, trading, or industrial activity, either directly or
indirectly, and is restricted to gathering and providing information to potential Indian consumers.

Businesses wanting to set up a liaison office should meet the following criterion as prescribed by the RBI:

  • The applicant must be a body corporate incorporated outside of India.
  • The net worth of the parent company must not be less than USD 50,000 or its equivalent.
  • The parent company should have a profit-making record during the immediately preceding three financial years in the home country.

Liaison offices are not allowed to undertake any business activity or to earn any income in India. The expenses of liaison offices are covered through inward remittances of foreign exchange from the head office outside India.

Project Office

As the name suggests, project offices are established by foreign companies to execute specific projects as per contracts to represent the parent company’s interests in India.

The RBI has granted general permission to foreign companies to establish project offices only if they have secured a contract, to execute a project in India, from an Indian company and subject to the following conditions:

  • The project is funded directly by inward remittance from abroad; or
  • The project is funded by a bilateral or multilateral international financing agency; or
  • The project has been cleared by an appropriate authority; or
  • A company or entity in India awarding the contract has been granted a term loan by a public financial institution or a bank in India for the project.

The RBI has given general permission for setting up project offices in India if the above-listed criterion is met. However, if the listed conditions are not met, the foreign company must approach the RBI for approval.

Comparative Analysis

BasisLiaison Office [LO]Branch Office [BO]Wholly Owned Subsidiary
MeaningA Liaison Office [also known as representative office] can undertake only liaison activities i.e., it can act as a channel of communication between Head Office abroad and parties in India. It is not allowed to undertake any business activity in India and cannot have any income in India.Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to setup Branch Offices with specific approval by the RBI. Normally, the Branch Office should be engaged in the activity of the parent company.An incorporated entity formed and registered under the Companies Act, 1956. It is a distinct legal entity, apart from its shareholders.
Constitution1. An extension of the Head Office.
2. It is a simple structure format.
3. No separate legal standing of its own.
1. An extension of the Head Office with right to accrue income in India.
2. It is a simple structure format.
3. No separate legal standing of its own.
1. Company format.
2. Separate legal entity.
Permitted Activities1. Representing in India the parent company / group companies.
2. Promoting export / import from / to India.
3. Promoting technical/ financial collaborations between parent / group companies and companies in India.
4. Acting as a communication channel between the parent company and Indian companies
1. Export/import of goods.
2. Rendering professional or consultancy services.
3. Carrying out research work, in areas in which the parent company is engaged.
4. Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
5. Representing the parent company in India and acting as buying/ selling agent in India.
6. Rendering services in information technology and development of software in India.
7. Rendering technical support to the products supplied by parent/group companies.
8. Foreign airline/shipping company.
As per its ‘main objectives’ stipulated in the Memorandum of Association subject to Indian regulations.
Criteria for set up1. Parent company should have a profit-making track record during the immediately preceding three financial years in the home country.
2. Net worth of the parent company not less than USD 50,000 or its equivalent.
1. Parent company should have a profit-making track record during the immediately preceding five financial years in the home country.
2. Net worth of the parent company not less than USD 100,000 or its equivalent.
A private company is required to be incorporated with a minimum authorized & paid up capital of INR 100,000 and minimum two subscribers. No requirement of track record of parent company as shareholder
Typical Terms of approval1. Not to undertake any activity of a trading, commercial or industrial nature and not to enter into any business contracts in its own name without RBI’s prior permission.
2. No commission/fees shall be charged or any other remuneration received / income earned by the office in India for the liaison activities/services rendered by it or otherwise in India.
3. The entire expenses of the office in India will be met exclusively by using funds received from head office through normal banking channels.
4. The office in India shall not borrow or lend any money from/to any person in India without RBI’s prior permission.
1. Not to expand its activities or undertake any new trading, commercial or industrial activity other than that expressly approved by the RBI.
2. The entire expenses in India will be met either by using funds received from head office through normal banking channels or through income generated by it in India.
3. The Branch Office will not accept any deposits in India.
4. The commission earned by the Branch Office from parties abroad for any agency business will be repatriated to India through normal banking channels.
5. Not to undertake any retail trading activity.
6. A Branch Office is not allowed to carry out manufacturing or processing activities in India, directly or indirectly.
A private company is required to be incorporated with a minimum paid-up capital of INR 100,000 and minimum two subscribers. Broadly, it:
 
– restricts the right to transfer its shares;
– limits the number of its members (shareholders) to fifty;
– prohibits any invitation to the public to subscribe to any of its shares or debentures; and;
– prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.  

The conditions will be different for Public Limited Companies.
Time limit of approvalNormally 3 years from the date of approval.Normally 3 years from the date of approval.Until the company decides to close down.
Basic RegistrationThe following registrations / approvals will be required:   1. Professional Tax.
2. Shops and Establishment Act Registration.
3. Permanent Account Number (PAN) / Tax Deduction and Collection Account Number (TAN).
4. Registrars of Companies (ROC) Registration.
5. Importer Exporter Code (IEC).
The following registrations / approvals will be required:  
1. PAN / TAN.
2. Service Tax.
3. Professional Tax.
4. Shops and Establishment Act Registration.
5. IEC.
6. VAT/GST.
7. ROC Registration.
The following registrations / approvals will be required:  
1. PAN / TAN.
2. Service Tax.
3. Professional Tax
4. Shops and Establishment Act Registration.
5. IEC
6. VAT/GST.
Liabilities of parent company/Head officeParent company’s liability is unlimited for all acts and omission of LO.The liability of the Branch is unlimited. The assets of the parent company are at risk of attachment in case the liabilities of the branch exceed its assets.The liability of the Parent company is limited to the extent of its shareholding in the WOS. The assets of the foreign company are not subject to any attachments.
Permitted IncomesThe entire expenses of the LO in India will be met out of the funds received from Head Office through normal banking channels. There will not be any income of the LO.The entire expenses of the BO in India will be met either out of the funds received from Head Office through normal banking channels or through income generated by it in India.All income arising out of its business activities.
Indian Income TaxSince there is no income accrual, there is no income tax. LO is required to file information in Form 49C with the Income Tax Department.Since a branch office of a foreign company is taxed as a foreign company in India, it is taxed @ 41.2% or 42.23% if the taxable income exceeds INR 10,000,000 during any financial year (FY).Any Indian company is taxed @ 30.90% or 33.99% if the taxable income exceeds INR 10,000,000 during any financial year (FY).
Payment of Dividend to ParentCannot pay dividend.Dividend/surplus distribution to Parent is tax free subject to normal tax in IndiaDividend can be paid & now shareholders need to pay tax.
ManagementLO is managed by Authorized Representative, resident in India (Country Manager)BO is managed by Authorized Representative, resident in India (Country Manager).Minimum two directors (can be foreign national, no need to be resident in India).
Audit:
A. Statutory Audit
Financials would be liable for statutory audit by a chartered accountantFinancials would be liable to statutory audit by a chartered accountant.Financials would be liable for statutory audit by a chartered accountant
B. Internal AuditNot Applicable.Not Applicable.Applicable, subject to conditions. Paid up capital + free reserves exceeding certain limits.
C. Tax AuditNot ApplicableApplicable for cases where turnover exceeds INR 4 million. Noncompliance would result in a penalty @ 0.5 % of the total turnover or INR 0.1 million, whichever is the lesser amount.Applicable in case of turnover exceeding INR 4 million. Noncompliance would result in a penalty @ 0.5 % of the total turnover or INR 0.1 million, whichever is the lesser amount.
Transfer PricingNot ApplicableApplicableApplicable
Annual Compliance
A) Filing
1. Yearly filings include the filing of audited accounts of the LO, world accounts with Registrar of Companies.
2. Yearly submission of activity certificate with the RBI and Authorized Dealer (AD) Bank.
3. Filing quarterly Tax Deducted at Source (TDS) returns.
4. Yearly filing of audited accounts of the LO with the Directorate of Income Tax, New Delhi.
5. File Form 49 C with Income Tax Department.
1. Yearly filings include the filing of audited accounts of BO, world accounts with Registrar of Companies.
2. Yearly submission of activity certificate with the RBI and AD Bank.
3. Annual return with the Income Tax Department.
4. Filing of quarterly TDS returns.
5. Filing of monthly Service Tax returns.
6. Filing of VAT/GST returns
1. Yearly filing of financials and Annual Return with the Registrar of Companies.
2. Filing of Compliance Certificate if paid up capital exceeds INR 1 million.
3. Annual Compliance with the RBI in the case of shares being allotted to foreign individuals (Form FC-GPR Part A & Part B).
4. Annual return with the Income Tax Department.
5. Filing of quarterly TDS returns.
6. Filing of monthly Service Tax returns.
7. Filing of VAT /GST returns.
B) MeetingNot Applicable.Not Applicable.Board – One meeting per quarter. Shareholder – One meeting per year.
Remittance of Profit to Parent companyNone, except upon closure of LO.Profits can be freely repatriated to the Parent Company subject to payment of applicable taxes.1. By way of dividend, subject to Dividend Distribution Tax.
2. By way of royalty/ fees for technical services.
3. By way of Management fees.
4. Related party transactions are subject to transfer pricing regulations.
BorrowingNot allowedThe BO is not allowed to borrow locally unless given prior approval by the RBI.1. There is no restriction on local borrowing.
2. ECBs are subject to guidelines issued by the RBI.

Finally, I can say that our viewers, particularly from the Aviation field, after going through the article, must have now been more clearer on the procedure that needs to be followed, when a foreign company tries to establish it’s presence in India. The other takeaway could be the value addition to your storehouse of information.

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The Importance Of Inspections In The Aerospace Industry

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Inspections in Aerospace Industry

In the dynamic and technologically advanced realm of aerospace, where precision and safety are paramount, inspections play a pivotal role in ensuring the integrity and reliability of aircraft and related components. The aerospace industry, marked by its rigorous standards and regulations, relies on meticulous inspections to guarantee the safety of passengers, crew members, and cargo. This article explores the importance of inspections in the aerospace industry, emphasizing their role in maintaining the highest standards of quality and safety.

Ensuring Compliance with Stringent Regulations

Safety in the aerospace industry is non-negotiable, and regulatory bodies impose stringent standards to uphold this principle. Inspections are the linchpin in ensuring compliance with these regulations.Whether conducted by aviation authorities, manufacturers, or independent agencies, inspections verify that aircraft, components, and systems meet or exceed the established safety and performance standards, including standards like AS6171. Comprehensive inspections cover a myriad of aspects, including structural integrity, avionics systems, propulsion systems, and adherence to manufacturing processes. Compliance with these regulations not only safeguards the lives of those onboard but also protects the reputation and credibility of the aerospace industry as a whole.

Enhancing Aircraft Reliability and Performance

Aircraft are complex machines that require meticulous maintenance to operate at optimal levels of reliability and performance. Routine inspections are essential for identifying and addressing potential issues before they escalate into safety hazards. Through regular checks and preventive maintenance, inspections contribute to the longevity of aircraft and their components, reducing the risk of in-flight failures and minimizing unscheduled downtime. Inspections cover a spectrum of elements, from engine health and avionics functionality to the structural integrity of airframes. Identifying and rectifying issues promptly not only ensures the safety of flights but also contributes to the overall efficiency and reliability of the aerospace industry.

Mitigating the Impact of Wear and Tear

Aircraft are subjected to harsh environmental conditions and operational stresses during their lifespan. These factors contribute to wear and tear, necessitating regular inspections to identify and address signs of degradation. By systematically assessing the condition of critical components, inspections enable the timely replacement of worn-out parts, reducing the likelihood of unexpected failures during flight. Furthermore, inspections contribute to the ongoing improvement of materials and manufacturing processes, ensuring that newer aircraft are more resilient to environmental factors and operational stresses. This proactive approach to mitigating wear and tear enhances the overall safety and durability of aerospace systems.

Preventing Catastrophic Failures

Catastrophic failures in aerospace can have severe consequences, endangering lives and causing substantial financial losses. The importance of inspections lies in their ability to identify potential issues before they escalate into critical failures. Regular inspections, combined with advanced testing technologies, enable the detection of structural weaknesses, manufacturing defects, and wear-related issues that could compromise the safety of an aircraft. By preventing catastrophic failures, inspections contribute to the reduction of accidents and incidents, fostering a safer environment for aviation professionals and passengers alike. This preventive approach is instrumental in maintaining public confidence in the aerospace industry and its commitment to safety.

Facilitating Continuous Improvement

Inspections in the aerospace industry go beyond ensuring compliance and preventing failures; they also serve as a catalyst for continuous improvement. Through the analysis of inspection data, manufacturers and operators can identify trends, assess the effectiveness of maintenance procedures, and implement enhancements to enhance overall safety and efficiency. The feedback loop created by inspections allows stakeholders to refine design specifications, manufacturing processes, and maintenance procedures. This commitment to continuous improvement not only bolsters safety standards but also positions the aerospace industry at the forefront of innovation and technological advancement.

Meeting Industry-Specific Challenges

The aerospace industry faces unique challenges, from extreme operating conditions to evolving technologies. Inspections are essential in addressing these challenges and adapting to the ever-changing landscape of aviation. For example, as new materials and manufacturing techniques emerge, inspections play a crucial role in evaluating their suitability for aerospace applications.

Additionally, inspections are instrumental in assessing the impact of environmental factors, such as bird strikes, extreme temperatures, and corrosive elements, on aircraft components. By meeting industry-specific challenges head-on, inspections contribute to the resilience and adaptability of the aerospace sector.

Conclusion

In the aerospace industry, where safety is paramount and precision is imperative, inspections emerge as a linchpin in ensuring the reliability, performance, and longevity of aircraft and related components. From compliance with stringent regulations to the prevention of catastrophic failures and the facilitation of continuous improvement, inspections play a multifaceted role in safeguarding the skies. As technology advances and aviation continues to evolve, the importance of inspections in the aerospace industry becomes even more pronounced. Through their comprehensive evaluation of aircraft systems, components, and manufacturing processes, inspections not only uphold the highest standards of safety but also contribute to the industry’s ongoing commitment to excellence and innovation.

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What Ails Non-Scheduled Airlines & Charter Business Operations In India

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Non scheduled airlines

The non-scheduled airlines and charter business operations in India play a significant role in the country’s aviation sector, catering to various market segments such as VIP travel, corporate travel, medical evacuation, leisure, and tourism. However, despite its potential for growth and profitability, this sector faces several challenges that hinder its progress. This report aims to

Regulatory Framework

One of the primary challenges faced by the non-scheduled airlines and charter business operators in India is the complex and restrictive regulatory framework. Operating permits, permissions, and licensing requirements are often overly bureaucratic and time-consuming. This bureaucratic hurdle makes it difficult for businesses to enter the market and operate smoothly, thereby negatively impacting operational efficiency and continued sustenance. Also as a natural consequence, allegations of corruption in the DGCA keep surfacing frequently. Recent accidents in Redbird Aviation and the fallout of it leading to the suspension of a senior DGCA Official are enough a highlight.

Suggestion: Streamlining the regulatory process by simplifying and digitizing the necessary permits and licensing procedures is bound to promote growth and encourage new entrants into the sector. Regular industry consultation can ensure that the regulatory framework remains relevant and adaptable. A lot has already been done by the Government in this regard. The eGCA site opened for the public and stakeholders is indeed a major step in the right direction. With most processes put on ‘Auto’ including but not limited to fee payments, scheduling, applying for permits, licensing of personnel, raising and replying queries, et al has remarkably eased the situation. However this remains a continuous process and elements like monitoring time bound completions etc could add punch to the efforts already put in.

Infrastructure

Another key concern is the inadequate infrastructure to support the non-scheduled airlines and charter operations business in India. Access to dedicated infrastructure such as hangars, maintenance facilities, and appropriate airfields is limited, resulting in increased costs and extended downtime for operators.

Suggestion: Investment in infrastructure development should be prioritized, with the construction of dedicated hangars and maintenance facilities in strategic locations. The government should also encourage even more private sector participation through public-private partnerships to ensure sustainable infrastructure growth. Having realized this, the Airports Authority of India has visibly accelerated development across many of the major airports across India. The multiple hangars coming up and facilities including the opening up of the Terminal 4 as exclusively for General Aviation are efforts in the right direction.

Lack of Awareness

The non-scheduled airlines and charter operations business has been grappling with the challenge of low public awareness and limited understanding of its services. This lack of awareness often hampers the growth potential of the sector as potential customers may not consider charter operations as a viable option. This has thus resulted in limiting utility, concentrated around a small chunk of HNI’s and the ultra elite.

Suggestion: Industry stakeholders, including airlines, industry associations, and the government, should jointly launch awareness campaigns to educate the public about the benefits of non-scheduled airlines and charter operations. Collaborating with tourism boards and travel agencies can help promote charter operations as a convenient and customized travel option.

Skilled Manpower Crunch

The skilled manpower crunch particularly of trained pilots and engineers is significantly impacting non scheduled airlines and air charter business operations in India. Due to the shortage of qualified pilots and engineers, charter operators face challenges in scaling their operations and meeting customer demand. This shortage leads to increased operational costs, extended downtime for aircraft maintenance, and delays in service, ultimately affecting the overall efficiency and profitability of charter operations. Additionally, the competition amongst operators to retain skilled manpower further escalates the operational costs for charter operators.

Another typicality that ails this sector is the fact that 80% of charter operations utilize smaller aircraft with capacities ranging from 2 to 20 passenger loads that categorically forms the bulk of General Aviation. Most CPL holders graduating with 200 flying hours with multiple engine rating, prefer seeking employment with scheduled airlines that have capacities to absorb. Thus there continues a perennial shortfall of Pilots in the general aviation. Same is the state of Engineers whose first choice always remain to work on bigger aircraft operated by most Scheduled carriers.

Suggestion: Addressing this shortage and investing in training programs for pilots and engineers is essential to ensure the growth and sustainability of the charter operation business in India. Simultaneously NSOP holders need to make the salary packages of Pilots and Engineers more lucrative, so as to retain talent and possibly avoid migration to scheduled carriers operating comparatively bigger aircraft.

Cost Factors

The non-scheduled airlines and charter operations business in India faces significant cost challenges. High fuel prices, taxation, and operating costs including airport charges, crew stays at outstations, insurance costs et al make it challenging for operators to offer competitive prices to customers.

A typical example of cost escalations could well be seen in the sky rocketing of Insurance premiums over the past few months. Though this could be attributed to the series of recent accidents / incidents like those at the Redbird Flying Academy, but the fact remains that the companies have now to cater to paying a 3 to 4 fold increase in premiums.

Suggestion: The government should consider addressing these cost challenges by implementing policies to reduce fuel taxes, subsidizing infrastructure costs, and exploring ways to reduce airport and other charges. Such measures will contribute to lowering operational expenses and encourage growth in the sector.

Safety and Security

Safety is paramount in aviation, and the non-scheduled airlines and charter operations business is no exception. Maintaining a high level of safety and security standards is crucial to instilling confidence in customers and industry stakeholders.

Suggestion: Specialized training programs should be implemented to ensure pilots, crew members, and ground staff receive regular training and maintain high safety standards. The government should further strengthen regulatory oversight to ensure adherence to safety protocols and encourage a culture of safety within the non-scheduled airlines and charter operations sector.

Conclusion

The non-scheduled airlines and charter operations business in India holds immense potential for growth, employment generation and profitability. However, certain challenges act as roadblocks to its progress. By addressing the regulatory framework, improving infrastructure, creating awareness, reducing cost factors, enhancing manpower skills and focusing on safety and security, India can unlock the full potential of this sector. A collaborative effort between industry stakeholders, the government, and regulators is necessary to overcome these challenges and create a conducive environment for growth and development in the non-scheduled airlines and charter operations business in India.

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