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Vedanta wins arbitration against govt in USD 1.1 bn cost disallowance case-Telangana Today

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Vedanta Ltd has won an arbitration against a demand for a higher payout from its prolific Rajasthan oil and gas fields

Published Date – 12:45 PM, Sun – 27 August 23


Vedanta wins arbitration against govt in USD 1.1 bn cost disallowance case



New Delhi: Mining magnate Anil Agarwal’s Vedanta Ltd has won an arbitration against a demand for a higher payout from its prolific Rajasthan oil and gas fields after disallowance of Rs 9,545 crore (USD 1.16 billion) in certain costs incurred, the company said.

The government has sought additional profit petroleum (or its share from the oil and gas fields) after it reallocated certain costs between the fields in the block and disallowed a portion of the cost incurred on laying a pipeline to evacuate oil produced from the Rajasthan block.

As per the contract, companies are allowed to recover all costs incurred before splitting profit in a predetermined ratio with the government. If a certain portion of cost is disallowed, it would result in higher profits and a resultant higher share to the government. Vedanta had challenged such a demand before an arbitration tribunal.

“The company has received an arbitration award dated August 23, 2023… upholding the contention of the company that additional profit petroleum, on account of Director General of Hydrocarbon (DGH) audit exceptions in relation to allocation of common development costs across Development Areas and certain other matters, is not payable as per terms of the Production Sharing Contract for Rajasthan Block,” it said in a stock exchange filing.

It however did not give details of the arbitration award. “The company is in the process of reviewing the award in detail and evaluating its financial impact,” it said.

In its latest annual report, Vedanta had put the number at Rs 9,545 crore.

“DGH, in September 2022, has trued up the earlier demand raised till 31 March 2018 up to 14 May 2020 for Government’s additional share of profit oil based on its computation of disallowance of cost incurred over retrospective re-allocation of certain common costs between Development Areas (DAs) of Rajasthan Block and certain other matters aggregating to Rs 9,545 crore applicable interest thereon representing share of the company and its subsidiary,” it said.

The firm said it disputed the demand and the other audit exceptions as it believed these were not in accordance with the PSC and are entirely unsustainable.

“In accordance with PSC terms, the group had commenced arbitration proceedings. The final hearing and arguments were concluded in September 2022. Post hearing briefs were filed by both the parties and award is awaited,” the annual report released last month said.

The award has now come.

Sources said DGH, which is the upstream nodal agency of the Ministry of Petroleum and Natural Gas, had way back in May 2018 raised a demand for additional share of profit oil for the government after disallowing Rs 1,508 crore out of the cost incurred on laying a heated-pipeline to transport Barmer crude and Rs 2,723 crore in the reallocation of certain common costs.

The numbers were revised in subsequent years. These costs pertain to only Vedanta’s share in the Rajasthan block as state-owned Oil and Natural Gas Corporation (ONGC), which holds 30 per cent interest in the block, had agreed to pay the government if these costs are disallowed.

It was not immediately known if the government will abide by the arbitration award. The government had previously challenged all arbitration awards it had lost.

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Stock exchanges slap fines on IOC, ONGC, GAIL for failure to meet listing regulations-Telangana Today

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Stock exchanges have slapped fines on state-owned oil and gas firms including IOC, ONGC and GAIL for their failure to meet listing requirements

Published Date – 01:15 PM, Sun – 27 August 23


Stock exchanges slap fines on IOC, ONGC, GAIL for failure to meet listing regulations

Stock exchanges have slapped fines on state-owned oil and gas firms including IOC, ONGC and GAIL for their failure to meet listing requirements

New Delhi: Stock exchanges have slapped fines on state-owned oil and gas firms including IOC, ONGC and GAIL for their failure to meet listing requirements of having a requisite number of independent directors and women directors.

In separate filings, the companies detailed the fines imposed by the BSE and NSE but were quick to point out that appointment of directors was done by the government and they had no role in it.

Oil and Natural Gas Corporation (ONGC) was slapped a Rs 3.36 lakh fine, while Indian Oil Corporation (IOC) was asked to pay Rs 5.36 lakh fine.

Gas utility GAIL was slapped Rs 2.71 lakh fine, Hindustan Petroleum Corporation Ltd (HPCL) Rs 3.59 lakh, Bharat Petroleum Corporation Ltd (BPCL) Rs 3.6 lakh, Oil India Ltd Rs 5.37 lakh and a fine of Rs 5.37 lakh was imposed on Mangalore Refinery and Petrochemicals Ltd (MRPL).

Except for IOC which was slapped with the fine for not having the required one woman director on the board, all the companies were fined for violating the norm of having the required number of independent directors.

IOC said the power to appoint directors (including independent and women directors) vests with the Ministry of Petroleum and Natural Gas, Government of India.

“And hence the non-appointment of women independent directors on the Board during the quarter ended June 30, 2023 was not due to any negligence / fault by the company,” it said. “Accordingly, Indian Oil should not be held liable to pay the fines and the same should be waived-off”.

IOC said it regularly takes up the issue with the ministry, for appointment of requisite number of independent directors (including Woman independent director), to ensure compliance with corporate governance norms.

“We would also like to inform that the company had received similar notices from the BSE and NSE in the past imposing fines and waiver requests from the company was considered favorably by the exchanges,” it said.

HPCL made a similar filing and cited past record of stock exchanges waiving such fines.

ONGC said it has requested the government for nomination of the requisite number of independent directors on the board of the company.

“Since the appointment of directors is beyond control of the company, request letters have been submitted to stock exchanges for waiving off the fine levied,” ONGC said.

BPCL said it had complied with the requirements for the financial year 2022-23 and till April 30, 2023.

But the appointment of a full-time directors with effect from May 1, 2023 led to BPCL having five whole-time Directors, two nominee directors of the government and six independent directors.

As per norm, BPCL should have had seven independent directors – equal to the executive directors (five whole-time directors and two government nominee directors).

BPCL said it has “requested the Government of India from time to time for the nomination of one independent director. As the directors are appointed after receipt of nomination from Government of India. BPCL has no control over the appointment of Directors.” The firm said it will be approaching BSE Limited and National Stock Exchange of India Limited for waiver of the fines. “Similar letters were received earlier from the stock exchanges for which waiver request was made by BPCL and the same was considered favorably by the stock exchanges,” the filing said.

Oil India Ltd (OIL) said the non-compliance was beyond the control of the company as it is a government enterprise and directors are appointed by the administrative ministry, Ministry of Petroleum and Natural Gas.

MRPL said it is following up with the government from time to time for appointing the required number of directors on its board.

GAIL said, “all the directors on the board of GAIL (including independent directors) are nominated/appointed by the Government of India. As such, appointments are outside the purview/control of the GAIL’s management.”

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Govt unlikely to infuse capital in PSU general insurers in FY24-Telangana Today

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The four public sector general insurance companies are unlikely to get capital funding from the government in the current fiscal

Published Date – 02:30 PM, Sun – 27 August 23


Govt unlikely to infuse capital in PSU general insurers in FY24

The four public sector general insurance companies are unlikely to get capital funding from the government in the current fiscal

New Delhi: The four public sector general insurance companies are unlikely to get capital funding from the government in the current fiscal, a senior official said.

He said one of the PSU non-life insurance companies is likely to give a dividend to the government in the current fiscal and they will be able to meet their solvency margins.

The government last year provided Rs 5,000 crore capital to three insurers –National Insurance Company, Oriental Insurance Company and United India Insurance Company.

The Budget 2023-24 has not provided for the capital infusion for insurance companies.

“We do not think there is a need for capital infusion as of now. In fact, one of the general insurance companies may give a dividend this year,” the official said.

Currently, there are four general insurance companies in India — New India Assurance, United India Insurance, Oriental Insurance and National Insurance Company. Of this, only New India Assurance is better placed than the rest.

Insurance companies are mandated by regulator IRDAI to maintain extra capital over and above the claim amounts they are likely to incur. It acts as a financial backup in extreme situations, enabling the company to settle all claims.

According to rating agency ICRA, most PSU insurers are expected to witness a high combined ratio resulting in net losses, though it will be lower compared to the last few years.

The capital requirement of three PSU general insurers (excluding New India) is estimated at a sizeable Rs 17,200-17,500 crore to meet solvency of 1.50x as of March 2024, assuming 100 per cent forbearance on FVCA (fair value change account), ICRA said in a report in May.

During 2020-21, Rs 9,950 crore was infused in three public sector general insurers by the government, out of which Rs 3,605 crore was infused in United India Insurance, Rs 3,175 crore in National Insurance and Rs 3,170 crore in Oriental Insurance.

With regard to a committee report on stalled real estate projects, the official said the SWAMIH fund corpus is yet to be utilised fully and banks can put in money in the stalled projects to make them viable after taking permission from the RBI.

A 14-member committee chaired by former NITI Aayog CEO Amitabh Kant, which was constituted to examine stalled real estate projects and recommend ways to complete them, submitted its report on August 21 to the government.

The committee concluded that the main reason for the stress in these projects was the “lack of financial viability”, which had led to cost overruns and time delays.

“We will take only those projects which could be made viable through the SWAMIH fund. The report has two parts –developers will be given money, if there is a stalled project, through the SWAMIH fund and banks can also put in money after taking permission from RBI. Secondly, individuals whose loan is stuck and can’t repay money, for them also we have made provision to classify it as standard asset,” the official added.

The fund corpus has not been utilised fully, he added. As on March 17, 2023, the government has released Rs 2,646.57 crore to the SWAMIH fund, which provides funding to stressed/ stalled mid income and affordable housing projects across India, subject to certain conditions. The fund is sponsored by Ministry of Finance and is managed by SBICAP Ventures Ltd.

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Govt decides not to allow basmati rice exports below USD 1,200 per tonne-Telangana Today

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The government has decided not to allow exports of basmati rice below USD 1,200 per tonne to restrict possible “illegal” shipment of white non-basmati rice

Published Date – 02:55 PM, Sun – 27 August 23


Govt decides not to allow basmati rice exports below USD 1,200 per tonne



New Delhi: The government has decided not to allow exports of basmati rice below USD 1,200 per tonne to restrict possible “illegal” shipment of white non-basmati rice in the garb of premium basmati rice.

In a statement on Sunday, the commerce ministry said it has directed trade promotion body APEDA not to register contracts below USD 1,200 per tonne.

Existing contracts below USD 1,200 per tonne have been kept in abeyance. A committee under the chairman of APEDA will be set up to evaluate future course of action.

Seeking to control retail prices of rice, the central government has been taking several steps to boost domestic supply.
In September last year, it banned exports of broken rice, while last month it imposed restrictions on non-basmati white rice. Last week, a 20 per cent export duty was slapped on par-boiled non-basmati rice.

With these curbs, India has now imposed restrictions on all varieties of non-basmati rice.

According to the statement of the commerce ministry, the government has issued instructions to APEDA (Agricultural and Processed Food Products Export Development Authority) to introduce additional safeguards to prevent the possible illegal exports of white non-basmati rice in the garb of basmati rice.

As per the instructions, “contracts for basmati exports with the value of USD 1,200 per MT (tonne) only and above should be registered for issue of Registration – cum – Allocation Certificate (RCAC)”.

As per the Foreign Trade Policy, APEDA is mandated to register all contracts for export of basmati rice and then it issues RCAC for the export of basmati rice.

The ministry added that contracts with value of below USD 1,200 per tonne may be kept in abeyance.

The contracts below this ceiling price would be evaluated by a committee to be set up by the APEDA chairman for understanding the variation in prices and use of this route for export of non-basmati white rice.

“It has been noted that there has been large variation in the contract price of basmati being exported with lowest contract price being USD 359 per MT in backdrop of average export price of USD 1,214 per MT during the current month,” it said.

The committee should submit its report within a period of one month, after which a decision on lower price exports of basmati planned by industry can be taken appropriately.

APEDA should hold consultations with trade to sensitize them about the matter and work with them to discourage any use of this window for export of non-basmati white rice.

India’s total exports of basmati rice stood at USD 4.8 billion in 2022-23 in terms of price, while in volume terms it was at 45.6 lakh tonne.

Exports of non-basmati stood at USD 6.36 billion in the last fiscal. In volume terms, it was 177.9 lakh tonne.

India’s rice production is estimated to have risen to 135.54 million tonne in the 2022-23 crop year (July-June) from 129.47 million tonne in the previous year, according to the agriculture ministry data.

The ministry said that to check domestic prices and to ensure domestic food security, the government has been taking measures to restrict export of rice from India.

The export of non-basmati white rice was prohibited on July 20.

“It has been noticed that despite restriction on certain varieties, rice exports have been high during the current year,” it said adding up to August 17, total exports of rice (other than broken rice, export of which is prohibited) were 7.33 MMT (million tonne) compared to 6.37 MMT during the corresponding period of previous year, registering an increase of 15.06 per cent.

It also said there has been a spurt in export of parboiled rice and basmati rice; both of these varieties did not have any restriction on exports.

While export of parboiled rice has grown 21.18 per cent (3.29 MMT during current year compared to 2.72 MMT in previous year), export of basmati rice has increased by 9.35 per cent (1.86 MMT in current year compared to 1.70 MMT during previous year).

Similarly, export of non-basmati white rice, which had an export duty of 20 per cent since September 9, 2022 and has been prohibited from July 20, has also registered an increase of 4.36 per cent (1.97 MMT compared to 1.89 MMT in previous year).

As per third Advanced Estimate of Department of Agriculture and Farmers Welfare, during the Rabi Season 2022-23, the production was only 158.95 LMT (lakh metric tonne) against 184.71 LMT during Rabi Season of 2021-22, a decline of 13.84 per cent.

It added that internationally, due to strong demand from Asian buyers, production disruptions registered in 2022/23 in some major producing countries like Thailand, and fears of possible adverse effect of the onset of El Nino, international rice prices have also been rising continuously since last year.

The FAO (Food and Agriculture Organisation) Rice Price Index reached 129.7 points in July 2023; its highest value since September 2011, registering an increase of 19.7 per cent over past year levels.

“As prices of Indian rice are still cheaper than the international prices, there has been a strong demand for Indian rice, resulting in record exports during 2021-22 and 2022-23,” it said.

“The government has received credible field reports regarding mis-classification and illegal export of non-basmati white rice, export of which has been prohibited with effect from July 20, 2023,” it added.

It has been reported that non-basmati white rice is being exported under the HS codes of par-boiled rice and basmati rice, the ministry said.

In trade parlance, every product is categorised under an HSN code (Harmonised System of Nomenclature). It helps in systematic classification of goods across the globe.

Business

FDI equity inflows dip 34 per cent to USD 10.94 billion in April-June 2023-Telangana Today

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FDI inflows stood at USD 16.58 billion during April-June 2022-23. Inflows during January-March 2023 too had contracted 40.55 per cent to USD 9.28 billion

Published Date – 07:19 PM, Sun – 27 August 23


FDI equity inflows dip 34 per cent to USD 10.94 billion in April-June 2023

FDI inflows stood at USD 16.58 billion during April-June 2022-23. Inflows during January-March 2023 too had contracted 40.55 per cent to USD 9.28 billion

New Delhi: Foreign direct investment (FDI) into India declined 34 per cent to USD 10.94 billion during April-June 2023-24, dragged by lower inflows in computer hardware and software, telecom, auto and pharma, according to government data.

FDI inflows stood at USD 16.58 billion during April-June 2022-23. Inflows during January-March 2023 too had contracted 40.55 per cent to USD 9.28 billion.

Investments from overseas fell in April, May and June this fiscal to USD 5.1 billion, USD 2.67 billion and USD 3.16 billion, respectively as against USD 6.46 billion, USD 6.15 billion and USD 3.98 billion in the year-ago corresponding periods, the data from Department for Promotion of Industry and Internal Trade (DPIIT) showed.

Total FDI, which includes equity inflows, reinvested earnings and other capital, contracted 21.4 per cent to USD 17.56 billion during the period under review as against USD 22.34 billion in April-June 2022.

During the quarter, FDI equity inflows decreased from major countries including Singapore, Mauritius, the US, UK, and UAE.

Investments dipped significantly from Cayman Islands and Cyprus to USD 75 million and USD 6 million during April-June 2023 as against USD 450 million and USD 605 million in the year-ago period.

However, inflows increased from the Netherlands, Japan and Germany.

Sector wise, inflows contracted in computer software and hardware, trading, telecommunication, automobile, pharma and chemicals.

However, services, construction (infrastructure) activities, construction development and metallurgical industry registered growth in inflows.

State-wise, though Maharashtra received the highest inflow of USD 4.46 billion during the period, it was down as compared to USD 5.24 billion in April-June 2022.

Similarly, overseas inflows in Karnataka plunged to USD 1.46 billion in April-June 2023 as against USD 2.8 billion in the same period last year. Other states/UTs where FDI dipped in the quarter include Gujarat, Rajasthan, Delhi, Tamil Nadu, and Haryana.

On the other hand, FDI in Telangana, Jharkhand, and West Bengal reported growth during the quarter.

DPIIT Secretary Rajesh Kumar Singh in May had stated that hardening interest rates globally and worsening geo-political situation impacted FDI inflows into India in 2022-23.

FDI equity inflows into India declined 22 per cent to USD 46 billion in 2022-23.

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India, UK to continue FTA negotiations till Aug-end-Telangana Today

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They reviewed the progress made in the ongoing negotiations for a Trade and Economic Partnership Agreement (TEPA) between India and EFTA (European Free Trade Association).

Published Date – 09:14 PM, Sun – 27 August 23


India, UK to continue FTA negotiations till Aug-end



New Delhi: Indian and UK officials will continue their negotiations till the month-end to iron out differences on the proposed free trade agreement (FTA), the commerce ministry said on Sunday.

This meeting will be followed by a review at the higher level, it said.

Following the G20 Trade and Investment Ministers Meeting (TIMM) at Jaipur, the progress of the negotiations was reviewed by Commerce and Industry Minister Piyush Goyal and UK’s Secretary of State for Trade Kemi Badenoch on August 26.

“Teams are going to continue negotiations till the end of August 2023 which will be followed by stock taking at the higher level,” it said.

While expressing satisfaction over the last 12 rounds of negotiations wherein several chapters have been finalized, both exuded confidence that the next round of talks to be similarly successful.

“Both Chief Negotiators apprised the ministers about the current state of play, issues outstanding for resolution and their continuous joint efforts to iron out the same,” the ministry added.

The ministers directed the officials to maintain a good pace of exchanges with a better understanding of each other’s aspirations and sensitivities.

“Both leaders expressed their unwavering commitment to reaching a conclusion on a fair, balanced, and mutually beneficial trade deal that will enhance economic cooperation between the two countries,” it added.

In a separate statement, the ministry said that Goyal and Swiss State Secretary for Economic Affairs Helene Budliger Artieda also held talks on ways to strengthen economic ties.

They reviewed the progress made in the ongoing negotiations for a Trade and Economic Partnership Agreement (TEPA) between India and EFTA (European Free Trade Association).

The EFTA members are Iceland, Liechtenstein, Norway, and Switzerland.

“Both leaders reiterated their shared vision of achieving a mutually beneficial trade deal based on the principle of reciprocity that reflects the evolving economic landscapes of both India and the EFTA countries,” it said.

 

Business

Telangana set to beat its own record in IT exports-Telangana Today

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During the 2022-23 financial year, the IT exports from Telangana were valued at Rs.2.41 lakh crore, registering a growth of 31.44 per cent increase over the 2021-22 financial year exports

Published Date – 08:00 AM, Mon – 28 August 23


Telangana set to beat its own record in IT exports



Hyderabad: Telangana is continuing its good performance in increasing IT exports since formation of the State. Given the State government’s priorities, Telangana in all likelihood will surpass its last fiscal performance by the end of the current financial year as well.

During the 2022-23 financial year, the IT exports from the State were valued at Rs 2.41 lakh crore, registering a growth of 31.44 per cent increase over the 2021-22 financial year exports. Interestingly, during the formation of the State, the IT exports were Rs 57,258 crore (2014-15) and the exports increased by Rs 57,706 crore from the financial year 2021-22 to 2022-23.

In tune with the increasing IT exports, the employment generation in the IT sector was also witnessing a steady growth. During the financial year 2022-23, 9.05 lakh jobs were generated much more than the 7.78 lakh jobs created in the 2021-22 financial year, with a growth rate of 16.29 percent.

The growth in the IT sector has had a ripple effect, creating four indirect employment opportunities in other sectors for each direct employment generated.

Expansion to Tier II cities

Not limiting the IT sector’s growth to Hyderabad, the State government is extending the sector to tier II cities and accordingly IT towers were being constructed in different districts. Already, the IT towers at Nizamabad, Siddipet, Mahabubnagar, Warangal, Karimnagar and Khammam have commenced operations and new towers were coming up at Nalgonda and Adilabad.

Data Centres

Tech giants Microsoft and Amazon have decided to increase their investments and data centre portfolios in the State. In January early this year, Microsoft had announced plans to establish three more data centres in the State at an investment of Rs.16,000 crore. These will be in addition to the three such it had announced in early 2022 at locations near Hyderabad with an investment of Rs.15,000 crore over 15 years.

Amazon Web Services too announced that it would increase its investment in Telangana from its previously committed Rs.20,096 crore in 2020 to Rs 36,300 crore by 2030.

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Rupee rises 12 paise to 82.52 against US dollar in early trade-Telangana Today

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The rupee was trading in a narrow range and appreciated by 12 paise to 82.52 against the US dollar in early trade on Monday, tracking positive Asian peers and domestic equities

Published Date – 10:30 AM, Mon – 28 August 23


Rupee rises 12 paise to 82.52 against US dollar in early trade



Mumbai: The rupee was trading in a narrow range and appreciated by 12 paise to 82.52 against the US dollar in early trade on Monday, tracking positive Asian peers and domestic equities.

Forex traders said the rupee is trading in a range as selling pressure by foreign investors dented sentiments, while easing crude oil prices cushioned the downside.

At the interbank foreign exchange, the domestic unit opened at 82.58, then touched a high of 82.52 against the American currency, registering a rise of 12 paise over its last close.

In initial trade, the rupee also touched a low of 82.59 against the American currency. On Friday, the rupee declined by 8 paise to settle at 82.64 against the US dollar.

“After a not too hawkish Powell in Jackson Hole Symposium on Friday risk assets were all up as Dow Jones Rose by 247 points and Asian stocks were also up,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Bhansali further said the rupee has gained slightly at the opening in a data-driven week that will see the release of PMIs of most nations, as also the NFPR on Friday, and looks to be in a range as the US and India GDP data are also awaited this week.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading flat at 104.07.

Brent crude futures, the global oil benchmark, fell 0.11 per cent to USD 84.39 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 92.24 points or 0.14 per cent higher at 64,978.75. The broader NSE Nifty advanced 41.70 points or 0.22 per cent to 19,307.50.

Foreign Institutional Investors (FIIs) were net sellers in capital markets on Friday as they offloaded shares worth Rs 4,638.21 crore, according to exchange data.

Meanwhile, India’s foreign exchange reserves dropped by USD 7.273 billion to USD 594.888 billion in the week ended August 18, the Reserve Bank of India (RBI) said on Friday.

In the previous week, the overall reserves had risen by USD 708 million to USD 602.161 billion.

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Markets climb in early trade on firm global trends-Telangana Today

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Equity benchmark indices climbed in early trade on Monday tracking strength in global markets

Published Date – 10:40 AM, Mon – 28 August 23


Markets climb in early trade on firm global trends



Mumbai: Equity benchmark indices climbed in early trade on Monday tracking strength in global markets. The BSE Sensex climbed 177.63 points to 65,064.14 in early trade. The NSE Nifty gained 62.2 points to 19,328.

From the Sensex pack, Jio Financial Services Ltd, Tata Steel, Larsen & Toubro, Sun Pharma, Power Grid, HDFC Bank and JSW Steel were among the gainers.
HCL Technologies, Hindustan Unilever, Bharti Airtel, Asian Paints, Nestle and Titan were among the laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading with gains. The US markets ended in the positive territory on Friday.

“The market will be keenly watching for signals from the RIL AGM today,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Global oil benchmark Brent crude declined 0.11 per cent to USD 84.39 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,638.21 crore on Friday, according to exchange data The BSE benchmark had ended lower by 365.83 points or 0.56 per cent at 64,886.51 on Friday. The Nifty declined by 120.90 points or 0.62 per cent to end at 19,265.80.

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Go First flight cancellations extended until August 31 citing ‘operational reasons’-Telangana Today

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Go First airlines, which has been grounded since early May, has announced a further extension of flight cancellations till August 31, the airline announced on Monday

Published Date – 11:40 AM, Mon – 28 August 23


Go First flight cancellations extended until August 31 citing ‘operational reasons’



New Delhi: Go First airlines, which has been grounded since early May, has announced a further extension of flight cancellations till August 31, the airline announced on Monday.

Taking to social media platform X, the airlines said, “Due to operational reasons, Go First flights until 31st August 2023 are cancelled. We apologise for the inconvenience caused and request customers to visit http://shorturl.at/jlrEZ for more information. For any queries or concerns, please feel free to contact us.”

Go First has also issued a statement, which it has posted along with the social media post, saying that the company has filed an application for immediate resolution and revival of operations and is optimistic about resuming bookings shortly.

“As you are aware, the company has filed an application for immediate resolution and revival of operations. We will be able to resume bookings shortly,” the airline stated.

“We regret to inform that due to operational reasons, Go First flights scheduled till August 31, 2023 have been cancelled. We apologise for the inconvenience caused by the flight cancellations. We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can,” Go First said in the statement.

Earlier on May 2, Go First cancelled its flights and filed for voluntary bankruptcy before the National Company Law Tribunal (NCLT), alleging delays on the part of a US-based engine maker, Pratt and Whitney, for its inability to promptly meet obligations — leading to the grounding of a portion of its fleet.

DGCA has conditionally allowed the grounded airline Go First to resume its operations. Directorate General of Civil Aviation (DGCA) had said Go First may resume scheduled flight operations on the availability of interim funding and approval of flight schedule by the regulator. The regulator had allowed the operation of 15 aircraft and 114 daily flights.

The airline has approximately 4,200 employees, and it reported total revenue from operations at Rs 4,183 crore in the financial year 2021-22. There were reports that the grounding of the Go First flights had put pressure on airfares, particularly on select routes where it had a footprint.