11 MARCH 2014

Ø With India poised to become the fastest growing aviation market in the world in the next two decades, the government plans to build nearly 200 low cost airports. government was keen to expand the sector to the smaller cities in a bid to improve air connectivity, especially to Tier-II and Tier-III cities. At least four to five smaller airports from Andhra Pradesh, including those at Kadapa and Rajahmundry, were likely to figure in the list. Describing them as ‘low-frills’ airports, he said no decision had been taken with regard to private participation. At present, the non-metro airports accounted for about 30 per cent of the total air traffic, which was expected to rise to 45 per cent in the next few years. The Airports Authority of India was planning to invest Rs.1,500 crore in developing non-metro airports in the 12th Plan.

Ø  An Empowered Group of Ministers (EGoM) met on Monday to give a final shape to the proposed Central public sector enterprises (CPSE) Exchange Traded Fund (ETF), which will comprise shares of 10 blue chip state-owned firms, and solicit retail participation. The ETF, which is expected to hit the markets this month, would have a corpus of Rs.3,000 crore, and will be used as a vehicle for the government stake sale in major PSUs, including ONGC, IOC and BHEL. ETF is a security that tracks an index, a commodity or a basket of assets such as an index fund, but trades like a stock on an exchange.  According to the draft prospectus filed with the Securities and Exchange Board of India (SEBI), individual retail investors can invest a minimum of Rs.5,000, while the maximum limit is Rs.10 lakh in the ETF. Non-institutional investors/qualified institutional buyers can invest in the scheme with a minimum investment amount of Rs.10 lakh. Companies in the ETF basket include GAIL, REC, Oil India, Container Corporation, Power Finance, Engineers India and Bharat Electronics.