The Union Budget for 2012-13 has been announced by Mr Pranab Mukherjee, the Union Finance Minister, in Parliament on March 16, 2012.
Highlights of Union Budget 2012-13
Overview of the Economy
GDP is estimated to grow by 6.9 per cent in 2011-12
Indian economy is expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12
Developments in India's external trade in the first half of current year have been encouraging. Diversification in export and import market achieved
Investment Environment
Efforts to arrive at a broadbased consensus in consultation with the State Governments in respect of decision to allow FDI in multi-brand retail upto 51 per cent
Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50 per cent to new retail investors, who invest upto Rs 50,000 (US$ 995.39) directly in equities and whose annual income is below Rs 1,000,000 (US$ 19,892) to be introduced. The scheme will have a lock-in period of 3 years
Various steps proposed to be taken for deepening the reforms in the Capital markets, including simplifying process of IPOs, allowing QFIs to access Indian Bond Market etc.
To protect the financial health of Public Sector Banks and Financial Institutions, Rs 15,888 crore (US$ 3.15 billion) proposed to be provided for capitalisation. Possibility of creating a financial holding company to raise resources to meet the capital requirements of PSU Banks under examination
A central "Know Your Customer" depository to be developed in 2012-13 to avoid multiplicity of registration and data upkeep
Agriculture
Plan Outlay for Department of Agriculture and Co-operation increased by 18 per cent
Outlay for Rashtriya Krishi Vikas Yojana (RKVY) increased to Rs 9,217 crore (US$ 1.83 billion) in 2012-13
Education
6,000 schools proposed to be set up at block level as model schools in Twelfth Plan
Rs 3,124 crore (US$ 622 million) provided for Rashtriya Madhyamik Shiksha Abhiyan (RMSA) representing an increase of 29 per cent over BE 2011-12
To ensure better flow of credit to students, a Credit Guarantee Fund proposed to be set up
Health
Allocation for NRHM proposed to be increased from Rs 18,115 crore (US$ 3.61 billion) in 2011-12 to Rs 20,822 crore (US$ 4.15 billion) in 2012-13
National Urban Health Mission is being launched
Housing Sector
Various proposals to address the shortage of housing for low income groups in major cities and towns including allowing ECB for low cost housing projects and setting up of a credit guarantee trust fund etc
Infrastructure and Industry
During Twelfth Plan period, investment in infrastructure to go up to Rs 5,000,000 crore (US$ 996.02 billion) with half of this, expected from private sector
More sectors added as eligible sectors for Viability Gap Funding under the scheme "Support to PPP in infrastructure"
Government has approved guidelines for establishing joint venture companies by defence PSUs in PPP mode
First Infrastructure Debt Fund with an initial size of Rs 8,000 crore (US$ 1.59 billion) launched earlier this month
National Manufacturing Policy
National Manufacturing Policy announced with the objective of raising, within a decade, the share of manufacturing in GDP to 25 per cent and creating of 100 million jobs
Skill Development
Projects approved by National Skill Development Corporation expected to train 62 million persons at the end of 10 years
Rs 1,000 crore (US$ 199.02 million) allocated for National Skill Development Fund in 2012-13
Budget Estimates
Gross Tax Receipts estimated at Rs 1,077,612 crore (US$ 214.66 billion)
Net Tax to Centre estimated at Rs 771,071 crore (US$ 153.60 billion)
Non-tax Revenue Receipts estimated at Rs 1,64,614 crore (US$ 32.79 billion)
Success in my Habit
Tuesday, March 20, 2012
Tata Steel, Wipro among world's most ethical firms
Mumbai: Tata Steel and Wipro have been named among the world's most ethical companies by an American think tank, Ethisphere Institute.
The Ethisphere Institute's annual World's Most Ethical Companies (WME) list revealed that 145 companies in countries including the US, Great Britain, Japan, Portugal and India stood out for setting high standards of employee behaviour and conduct.
Ethisphere evaluated about 5,000 global companies, including those in Standard & Poor's 500 index on reputation, corporate citizenship, culture and other qualities.
Ethisphere's annual list of the WME recognises companies that truly go beyond making statements and conduct business ethically by translating words into actions.
Mr H.M. Nerurkar, Managing Director, Tata Steel, said ethical business principles and practices have been the key differentiators of Tata Group and Tata Steel since inception.
In 1998, the Tata Group developed its first Code of Conduct, which was articulation of its values and business principles followed by its employees since the inception of the group and the company, Tata Steel said in a press release.
The process for implementation of Tata Code of Conduct in the company involves engagement with different global partners of the company including Corus, NatSteel and other companies. The revised version of the Code, Global Tata Code of Conduct, was launched by the Group's Chairman in 2008, it said.
The research-based Ethisphere Institute is a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.
The Ethisphere Institute's annual World's Most Ethical Companies (WME) list revealed that 145 companies in countries including the US, Great Britain, Japan, Portugal and India stood out for setting high standards of employee behaviour and conduct.
Ethisphere evaluated about 5,000 global companies, including those in Standard & Poor's 500 index on reputation, corporate citizenship, culture and other qualities.
Ethisphere's annual list of the WME recognises companies that truly go beyond making statements and conduct business ethically by translating words into actions.
Mr H.M. Nerurkar, Managing Director, Tata Steel, said ethical business principles and practices have been the key differentiators of Tata Group and Tata Steel since inception.
In 1998, the Tata Group developed its first Code of Conduct, which was articulation of its values and business principles followed by its employees since the inception of the group and the company, Tata Steel said in a press release.
The process for implementation of Tata Code of Conduct in the company involves engagement with different global partners of the company including Corus, NatSteel and other companies. The revised version of the Code, Global Tata Code of Conduct, was launched by the Group's Chairman in 2008, it said.
The research-based Ethisphere Institute is a leading international think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.
Encyclopaedia Britannica bullish on India plans
Mumbai: After deciding to end the publication of its 32-volume printed encyclopaedia, Chicago-based Encyclopaedia Britannica says it would launch more online learning and knowledge products in India.
The Indian market, in which Encyclopaedia Britannica has been present for 12 years, accounted for about five per cent of the company’s global print sales, as the share of North American and European markets diminished. It has sold around 1,100 of each edition in the country over the past 30 months.
However, Leah Mansoor, senior vice-president (international business), in an email interaction with Business Standard, said the decision to close the print version was unlikely to have an impact on its financials or operations, as print accounted for just one per cent of its global revenue.
The company has a history of 244 years, with the first encyclopaedia sold in 1768.
It has big plans for the Indian market, given the importance given to education in the country, Mansoor said. “Our focus now is on the school market, for which we offer a series of electronic knowledge and instructional services. We recently launched the Indian version of our Britannica School Online service, which aligns to the curriculum in India and includes learning materials for both teachers and students. We are looking forward to adapting and launching some our instructional material in science and math,” Mansoor said.
“This is an ongoing development process that would be aligned with the Indian market needs. Our consumer web strategy is global and India also takes part in it,” he added.
Encyclopaedia Britannica India saw double-digit growth in financial year 2010-11 and expects similar growth over the next two to three years, Mansoor said.
“We launched our first curriculum books in math, social studies, science and general knowledge three years ago and our sales have grown dramatically ever since,” Mansoor said.
Last year, Encyclopaedia Britannica entered into a partnership with telecom player Airtel for providing free access to its volumes to broadband users. “We received some exposure, increased traffic to our web properties and, most importantly, we started to co-host here in India in order to improve the quality of our online services,” Mansoor added.
Encyclopaedia Britannica India has two primary divisions — consumer and institutional. The consumer division handles the sales of books, CDs and online subscriptions to consumers and trade as well as handling B2B relationship with original equipment manufacturers and co-publishers.
The Indian market, in which Encyclopaedia Britannica has been present for 12 years, accounted for about five per cent of the company’s global print sales, as the share of North American and European markets diminished. It has sold around 1,100 of each edition in the country over the past 30 months.
However, Leah Mansoor, senior vice-president (international business), in an email interaction with Business Standard, said the decision to close the print version was unlikely to have an impact on its financials or operations, as print accounted for just one per cent of its global revenue.
The company has a history of 244 years, with the first encyclopaedia sold in 1768.
It has big plans for the Indian market, given the importance given to education in the country, Mansoor said. “Our focus now is on the school market, for which we offer a series of electronic knowledge and instructional services. We recently launched the Indian version of our Britannica School Online service, which aligns to the curriculum in India and includes learning materials for both teachers and students. We are looking forward to adapting and launching some our instructional material in science and math,” Mansoor said.
“This is an ongoing development process that would be aligned with the Indian market needs. Our consumer web strategy is global and India also takes part in it,” he added.
Encyclopaedia Britannica India saw double-digit growth in financial year 2010-11 and expects similar growth over the next two to three years, Mansoor said.
“We launched our first curriculum books in math, social studies, science and general knowledge three years ago and our sales have grown dramatically ever since,” Mansoor said.
Last year, Encyclopaedia Britannica entered into a partnership with telecom player Airtel for providing free access to its volumes to broadband users. “We received some exposure, increased traffic to our web properties and, most importantly, we started to co-host here in India in order to improve the quality of our online services,” Mansoor added.
Encyclopaedia Britannica India has two primary divisions — consumer and institutional. The consumer division handles the sales of books, CDs and online subscriptions to consumers and trade as well as handling B2B relationship with original equipment manufacturers and co-publishers.
Govt to infuse Rs 15,888 cr into banks
The government has earmarked Rs 15,888 crore for capital infusion into banks in the next financial year, considerably higher than what was allotted in the previous Budget. This apart, it’s planning to set up a financial holding company that will raise funds for public sector banks.
“For 2012-13, I propose to provide Rs 15,888 crore for capitalisation of public sector banks, regional rural banks and other financial institutions, including Nabard (National Bank for Agriculture and Rural Development),” Finance Minister Pranab Mukherjee said while presenting the Budget for 2012-13. “We are committed to protecting the financial health of public sector banks and financial institutions.”
Last year, the government had provided Rs 6,000 crore for public sector banks. However, according to the revised estimates, the total outgo would be more than three times of the initial estimate at Rs 19,540 crore.
The provision for higher capital comes after state-run banks gave their capital requirement plans for the next eight-10 years, after taking into account the capital requirement under the new Basel-III framework. The holding company structure, on the other hand, is in line with the government’s plan to maintain a minimum stake of 58 per cent in public sector banks. Otherwise, it may find it difficult to infuse large sums of money, as this would affect the country’s fiscal position.
The capital infusion would enable public sector banks to maintain a minimum Tier-I capital adequacy at eight per cent, and also meet their capital requirements in the coming financial year. The regulatory capital adequacy ratio (CAR) requirement is six per cent, with an overall CAR of nine per cent.
T M Bhasin, chairman and managing director of Indian Bank, said the fund allocated for state-owned banks would help them achieve the target of 18 per cent credit growth next financial year.
In 2011-12, government also roped in Life Insurance Corporation of India (LIC) to infuse capital into mid-size state-run lenders. A dozen state-owned banks like Punjab National Bank, Union Bank of India, Indian Overseas Bank and Bank of Baroda allotted shares to LIC. The largest institutional investor in the country, LIC, infused Rs 7,560 crore by subscribing to those shares. In total, taking LIC into account, Rs 27,100 crore was infused into 13 state-run banks.
According to sources, the funds would be raised by the holding company, which would be an investor in the bank. The government would continue to hold on to its control of the bank’s management, while inducting external capital into the holding company.
The government has 54-56 per cent in large banks like Bank of Baroda, Union Bank of India and Punjab National Bank. It would not be possible for the government to raise additional funds without diluting its stake.
“For 2012-13, I propose to provide Rs 15,888 crore for capitalisation of public sector banks, regional rural banks and other financial institutions, including Nabard (National Bank for Agriculture and Rural Development),” Finance Minister Pranab Mukherjee said while presenting the Budget for 2012-13. “We are committed to protecting the financial health of public sector banks and financial institutions.”
Last year, the government had provided Rs 6,000 crore for public sector banks. However, according to the revised estimates, the total outgo would be more than three times of the initial estimate at Rs 19,540 crore.
The provision for higher capital comes after state-run banks gave their capital requirement plans for the next eight-10 years, after taking into account the capital requirement under the new Basel-III framework. The holding company structure, on the other hand, is in line with the government’s plan to maintain a minimum stake of 58 per cent in public sector banks. Otherwise, it may find it difficult to infuse large sums of money, as this would affect the country’s fiscal position.
The capital infusion would enable public sector banks to maintain a minimum Tier-I capital adequacy at eight per cent, and also meet their capital requirements in the coming financial year. The regulatory capital adequacy ratio (CAR) requirement is six per cent, with an overall CAR of nine per cent.
T M Bhasin, chairman and managing director of Indian Bank, said the fund allocated for state-owned banks would help them achieve the target of 18 per cent credit growth next financial year.
In 2011-12, government also roped in Life Insurance Corporation of India (LIC) to infuse capital into mid-size state-run lenders. A dozen state-owned banks like Punjab National Bank, Union Bank of India, Indian Overseas Bank and Bank of Baroda allotted shares to LIC. The largest institutional investor in the country, LIC, infused Rs 7,560 crore by subscribing to those shares. In total, taking LIC into account, Rs 27,100 crore was infused into 13 state-run banks.
According to sources, the funds would be raised by the holding company, which would be an investor in the bank. The government would continue to hold on to its control of the bank’s management, while inducting external capital into the holding company.
The government has 54-56 per cent in large banks like Bank of Baroda, Union Bank of India and Punjab National Bank. It would not be possible for the government to raise additional funds without diluting its stake.
Infrastructure sector has been given due thrust in budget 2012: CS Verma, Chairman SAIL
C S Verma, chairman, SAIL: "Infrastructure sector has been given due thrust in the budget. Doubling the infrastructure tax-free bond amount to Rs. 60,000 crore, 8800-km highway coverage target, focus on low-cost housing and reaffirming investment of Rs. 50 lakh crore in infrastructure sector in 12th plan are steps that present a scenario conducive for growth of steel industry.
Besides increase in customs duty for flat carbon steel and reduction in import duty for equipment required in mining & minerals sector are all measures which are positive for steel industry.
Overall it is a pragmatic and growth-oriented budget with concrete steps for containing fiscal deficit at a realistic target of 5.1 % for 2012-13, streamlining of direct and indirect tax regime, creating investment-friendly environment and reviving growth in manufacturing. With the measures announced, it is quite conceivable that GDP growth in 2012-13 could be upward of 7.5 %."
Besides increase in customs duty for flat carbon steel and reduction in import duty for equipment required in mining & minerals sector are all measures which are positive for steel industry.
Overall it is a pragmatic and growth-oriented budget with concrete steps for containing fiscal deficit at a realistic target of 5.1 % for 2012-13, streamlining of direct and indirect tax regime, creating investment-friendly environment and reviving growth in manufacturing. With the measures announced, it is quite conceivable that GDP growth in 2012-13 could be upward of 7.5 %."
India, Africa launch business council to further trade ties
New Delhi: India and Africa have agreed to raise their bilateral trade target to $90 billion by 2015 from $70 billion set earlier.
This follows bilateral trade reaching $60 billion last year.
“A 20-fold growth within a decade is indeed an achievement worth applauding. I propose that given the current growth rate, we may agree to revise the trade target to $90 billion by 2015,” said the Union Commerce, Industry and Textiles Minister, Mr Anand Sharma, during the second meeting of the India-Africa Trade Ministers here.
They also launched the India-Africa Business Council (IABC), which will be co-chaired by Mr Sunil Bharti Mittal, Chairman, Bharti Group, from India side and Mr Alhaji Aliko Dangote, President and Chief Executive, Dangote Group, Nigeria, from African side.
The core sectors of co-operation will be agriculture, manufacturing, pharmaceuticals, textiles, mining, petroleum and natural gas, IT/ITeS, gems and jewellery, financial services (including microfinance), energy, roads and railways.
This follows bilateral trade reaching $60 billion last year.
“A 20-fold growth within a decade is indeed an achievement worth applauding. I propose that given the current growth rate, we may agree to revise the trade target to $90 billion by 2015,” said the Union Commerce, Industry and Textiles Minister, Mr Anand Sharma, during the second meeting of the India-Africa Trade Ministers here.
They also launched the India-Africa Business Council (IABC), which will be co-chaired by Mr Sunil Bharti Mittal, Chairman, Bharti Group, from India side and Mr Alhaji Aliko Dangote, President and Chief Executive, Dangote Group, Nigeria, from African side.
The core sectors of co-operation will be agriculture, manufacturing, pharmaceuticals, textiles, mining, petroleum and natural gas, IT/ITeS, gems and jewellery, financial services (including microfinance), energy, roads and railways.
Sunday, March 18, 2012
IIHT, Microsoft launch course in cloud computing
Kochi: IIHT Ltd, a technology-training organisation, along with Microsoft, has announced the launch of a certified cloud expert programme at Kochi Infopark.
Mr Keshava Raju, CEO, IIHT, told reporters here that the programme would help IT professionals and aspirants acquire the necessary skills to develop into cloud professionals by acquiring expertise in multivendor virtualisation solutions, IT infrastructure monitoring and management, along with private cloud designing and deployment skills.
He pointed out that the international research firm, IDC, estimates that cloud computing will generate 14 million new jobs worldwide by 2015. With India getting nearly 20 lakh cloud computing jobs according to the findings of this new study commissioned by Microsoft, the launch of this program will benefit IT aspirants all.
The market for public cloud infrastructure, platforms and applications is growing far more quickly than any other type of IT spending, he added.
IIHT will expand the programme to five more cities in the State in the next two years. To create awareness on cloud computing, the company is also organising an international workshop here on Saturday jointly with Microsoft.
Mr Keshava Raju, CEO, IIHT, told reporters here that the programme would help IT professionals and aspirants acquire the necessary skills to develop into cloud professionals by acquiring expertise in multivendor virtualisation solutions, IT infrastructure monitoring and management, along with private cloud designing and deployment skills.
He pointed out that the international research firm, IDC, estimates that cloud computing will generate 14 million new jobs worldwide by 2015. With India getting nearly 20 lakh cloud computing jobs according to the findings of this new study commissioned by Microsoft, the launch of this program will benefit IT aspirants all.
The market for public cloud infrastructure, platforms and applications is growing far more quickly than any other type of IT spending, he added.
IIHT will expand the programme to five more cities in the State in the next two years. To create awareness on cloud computing, the company is also organising an international workshop here on Saturday jointly with Microsoft.
Wipro Tech unveils NextGen healthcare tool
Bangalore: Eyeing the $24-billion US healthcare market, Wipro Technologies has launched its NextGen Care Management solution.
This solution is aimed at primary care physicians and healthcare providers and is tailored for the US healthcare market. Wipro's NextGen Care Management solution enables physicians to drive patient participation in devising a personalised care plan with defined care goals, treatment plan and health improvement activities.
The built-in collaboration platform in the solution uses tools such as SMS, chat, alerts, reminders, activity workflows and helps in reducing cost by avoiding treatment overlaps, multiple clinical tests or hospitalisation.
The solution built on Salesforce.com's social enterprise platform for employee facing apps is compatible with devices such as smartphones, tablets and integrates with remote patient monitoring. This is delivered on the cloud.
The world's largest economy had its medical care in shambles and in 2009 President MR Barack Obama passed the healthcare bill that increased healthcare coverage to about 30 million Americans who were previously not covered.
Since then, insurance providers have had to manage the huge influx of patients, which, in turn puts a lot of stress on their IT systems and is estimated to increase their investments by $3-$5 billion in a year.
“The concept of patient-centric care management is encouraging healthcare organisations to adapt innovations in managing chronic diseases, treating remotely. Wipro's solution is capable of transforming the current reactive, episodic, fragmented care delivery system into a foundation of partnership between payer, provider and patient to co-manage, monitor and measure delivery of care,” said Mr Mohd Haque, Vice-President, Healthcare Vertical, Wipro Technologies.
This solution is aimed at primary care physicians and healthcare providers and is tailored for the US healthcare market. Wipro's NextGen Care Management solution enables physicians to drive patient participation in devising a personalised care plan with defined care goals, treatment plan and health improvement activities.
The built-in collaboration platform in the solution uses tools such as SMS, chat, alerts, reminders, activity workflows and helps in reducing cost by avoiding treatment overlaps, multiple clinical tests or hospitalisation.
The solution built on Salesforce.com's social enterprise platform for employee facing apps is compatible with devices such as smartphones, tablets and integrates with remote patient monitoring. This is delivered on the cloud.
The world's largest economy had its medical care in shambles and in 2009 President MR Barack Obama passed the healthcare bill that increased healthcare coverage to about 30 million Americans who were previously not covered.
Since then, insurance providers have had to manage the huge influx of patients, which, in turn puts a lot of stress on their IT systems and is estimated to increase their investments by $3-$5 billion in a year.
“The concept of patient-centric care management is encouraging healthcare organisations to adapt innovations in managing chronic diseases, treating remotely. Wipro's solution is capable of transforming the current reactive, episodic, fragmented care delivery system into a foundation of partnership between payer, provider and patient to co-manage, monitor and measure delivery of care,” said Mr Mohd Haque, Vice-President, Healthcare Vertical, Wipro Technologies.
IIM-K signs pact with Leeds University Business School
Kozhikode: The Indian Institute of Management Kozhikode (IIM-K) has signed an agreement of co-operation with Leeds University Business School, UK.
The agreement is another step in the internationalisation efforts of the institute and it will enable both the institutions to carry out activities such as exchange of students, exchange of faculty members and collaborative research on contemporary management issues, according to Dr M.K. Nandakumar, Chairman, International Exchange Programme, IIM-K.
The agreement was signed between Prof. Debashis Chatterjee, Director of IIM-K, and Prof. Mark Smelik, Associate Dean (External Relations) of Leeds University Business School.
Dr Nandakumar said that top class researchers at Leeds University attracted substantial amount of research funding from various international agencies every year. The partnership would provide plenty of opportunities to the researchers at IIM-K to collaborate with the researchers at Leeds University and conduct research in varied areas of management.
The Centre for International Business at Leeds University has run an India-focused research centre, funded by the British Government. Leeds University has plans to enhance this centre and ensure its continuation.
The centre is interested in running research projects in association with IIM-K on inward and outward investments, links with the UK and analysis of economic performance and investment attractiveness of Indian cities.
Prof. Peter Moizer, Dean of Leeds University Business School, and Prof. Mark Smelik were on a visit to IIM-K to discuss various areas of collaboration between the two institutions, Dr. Nandakumar said.
The agreement is another step in the internationalisation efforts of the institute and it will enable both the institutions to carry out activities such as exchange of students, exchange of faculty members and collaborative research on contemporary management issues, according to Dr M.K. Nandakumar, Chairman, International Exchange Programme, IIM-K.
The agreement was signed between Prof. Debashis Chatterjee, Director of IIM-K, and Prof. Mark Smelik, Associate Dean (External Relations) of Leeds University Business School.
Dr Nandakumar said that top class researchers at Leeds University attracted substantial amount of research funding from various international agencies every year. The partnership would provide plenty of opportunities to the researchers at IIM-K to collaborate with the researchers at Leeds University and conduct research in varied areas of management.
The Centre for International Business at Leeds University has run an India-focused research centre, funded by the British Government. Leeds University has plans to enhance this centre and ensure its continuation.
The centre is interested in running research projects in association with IIM-K on inward and outward investments, links with the UK and analysis of economic performance and investment attractiveness of Indian cities.
Prof. Peter Moizer, Dean of Leeds University Business School, and Prof. Mark Smelik were on a visit to IIM-K to discuss various areas of collaboration between the two institutions, Dr. Nandakumar said.
Virgin Atlantic to launch Mumbai-London flights
Mumbai: Richard Branson's Virgin Atlantic is all set to operate again on the Mumbai-London route, nearly after three years after the airline announced withdrawal of flights from Mumbai facing thinning profit margins in a recession hit environment.
The flights that are scheduled to start from October 29 this year will be done on the A330-300 with Upper Class Dreamsuite, a new product line offering from Virgin, the airline said in a statement on Thursday.
The announcement of launch of Virgin's flight comes at a time when some of the bigger international carriers like Qantas and American Airlines have withdrawn flights from the Indian market. Also domestic carriers like Kingfisher have been forced to dump international flights to London both from Delhi and Mumbai due to a financial crisis thereby sucking capacity from the market.
Virgin is not only connecting Mumbai to London but its daily flights will also offer easy connectivity from London Heathrow to US markets of New York, Boston, Chicago and Washington, the airline said. However the Chicago service will be a seasonal service starting only in 2013. The stop over time for US connecting flights will have no more than couple of hours' wait, the airline said.
Virgin flights from New Delhi to London and New York have seen a growth of 20% in 2011 and overall since Virgin stopped operating from Mumbai, over a million passengers have flown this market, the airline said justifying the start of flights again.
"India's phenomenal growth continues to drive travel to the UK and the USA and we know our passengers are going to love the connections the new flights offers," said Sir Richard Branson, president Virgin Atlantic Airways.
The flights that are scheduled to start from October 29 this year will be done on the A330-300 with Upper Class Dreamsuite, a new product line offering from Virgin, the airline said in a statement on Thursday.
The announcement of launch of Virgin's flight comes at a time when some of the bigger international carriers like Qantas and American Airlines have withdrawn flights from the Indian market. Also domestic carriers like Kingfisher have been forced to dump international flights to London both from Delhi and Mumbai due to a financial crisis thereby sucking capacity from the market.
Virgin is not only connecting Mumbai to London but its daily flights will also offer easy connectivity from London Heathrow to US markets of New York, Boston, Chicago and Washington, the airline said. However the Chicago service will be a seasonal service starting only in 2013. The stop over time for US connecting flights will have no more than couple of hours' wait, the airline said.
Virgin flights from New Delhi to London and New York have seen a growth of 20% in 2011 and overall since Virgin stopped operating from Mumbai, over a million passengers have flown this market, the airline said justifying the start of flights again.
"India's phenomenal growth continues to drive travel to the UK and the USA and we know our passengers are going to love the connections the new flights offers," said Sir Richard Branson, president Virgin Atlantic Airways.
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