A 'BIG FIGHT' BETWEEN AUTO DEALERS & MANUFACTURERS

By Kajol Singh & Parthiv Shukla

Dealers Want Excise Relief On Inventories Available With Them As On Dec 7

There seems to be a never ending trouble in the auto industry over who shares the ‘hit’ due to the 4% excise duty reduction. As reported by TOI on December 9, a major fight is now brewing up over sharing of the burden on the inventory bought at higher excise duty.

Federation of Automobile Dealers Association (FADA) has estimated that the burden could be to the tune of Rs 600 crore. And with manufacturers not very forthcoming to help meet this cost, they have now petitioned the government for relief, requesting that excise relief be also applicable on the inventories/stocks available with them as on December 7 (the day the government’s financial package was announced).

Dealers, who are cash-starved because of poor margins and low demand, on Tuesday wrote letters to various ministries, including finance and commerce, as well as to the Planning Commission and Cabinet secretariat for help to “correct the unpleasant, anomalous situation”.

“The automobile dealers, saddled with huge inventories due to slowdown, find themselves in a bind. The automobile retail trade collectively may have to take a hit of Rs 500-600 crore in clearing the existing stocks at the revised prices announced by the manufacturers. We, therefore, request that the benefit of 4% excise duty cut may also be extended to the stocks already lying with the automobile dealers as on December 7,” FADA secretary general Gulshan Ahuja petitioned.

“The situation is particularly bad in two-wheelers where some companies have said they are ready to share only 50% of the burden while the dealer will have to chip in with the rest. This is just not acceptable as dealers are cash-crunched and are carrying huge inventories following very poor demand in the market,” a leading dealer said on condition of anonymity.

Another dealer said instead of helping dealers meet the burden, companies were now coming out with indirect schemes that were of no use. “We have been given a ‘target-based’ scheme under which the company will only compensate us if we are able to achieve a particular sales target,” the dealer said.

FADA officials said this was “not at all acceptable” and they were looking at greater engagement and support from the manufacturers. The dealer association has already written to the Society of Indian Automobile Manufacturers (SIAM), the grouping of auto manufacturers, for support. “We hope that the manufacturers would come forward to compensate the automobile dealers for the inventories already held by them,” it said in a letter to SIAM.

A 'BIG FIGHT' BETWEEN AUTO DEALERS & MANUFACTURERS

By Kajol Singh & Parthiv Shukla

Dealers Want Excise Relief On Inventories Available With Them As On Dec 7

There seems to be a never ending trouble in the auto industry over who shares the ‘hit’ due to the 4% excise duty reduction. As reported by TOI on December 9, a major fight is now brewing up over sharing of the burden on the inventory bought at higher excise duty.

Federation of Automobile Dealers Association (FADA) has estimated that the burden could be to the tune of Rs 600 crore. And with manufacturers not very forthcoming to help meet this cost, they have now petitioned the government for relief, requesting that excise relief be also applicable on the inventories/stocks available with them as on December 7 (the day the government’s financial package was announced).

Dealers, who are cash-starved because of poor margins and low demand, on Tuesday wrote letters to various ministries, including finance and commerce, as well as to the Planning Commission and Cabinet secretariat for help to “correct the unpleasant, anomalous situation”.

“The automobile dealers, saddled with huge inventories due to slowdown, find themselves in a bind. The automobile retail trade collectively may have to take a hit of Rs 500-600 crore in clearing the existing stocks at the revised prices announced by the manufacturers. We, therefore, request that the benefit of 4% excise duty cut may also be extended to the stocks already lying with the automobile dealers as on December 7,” FADA secretary general Gulshan Ahuja petitioned.

“The situation is particularly bad in two-wheelers where some companies have said they are ready to share only 50% of the burden while the dealer will have to chip in with the rest. This is just not acceptable as dealers are cash-crunched and are carrying huge inventories following very poor demand in the market,” a leading dealer said on condition of anonymity.

Another dealer said instead of helping dealers meet the burden, companies were now coming out with indirect schemes that were of no use. “We have been given a ‘target-based’ scheme under which the company will only compensate us if we are able to achieve a particular sales target,” the dealer said.

FADA officials said this was “not at all acceptable” and they were looking at greater engagement and support from the manufacturers. The dealer association has already written to the Society of Indian Automobile Manufacturers (SIAM), the grouping of auto manufacturers, for support. “We hope that the manufacturers would come forward to compensate the automobile dealers for the inventories already held by them,” it said in a letter to SIAM.

A 'BIG FIGHT' BETWEEN AUTO DEALERS & MANUFACTURERS

By Kajol Singh & Parthiv Shukla

Dealers Want Excise Relief On Inventories Available With Them As On Dec 7

There seems to be a never ending trouble in the auto industry over who shares the ‘hit’ due to the 4% excise duty reduction. As reported by TOI on December 9, a major fight is now brewing up over sharing of the burden on the inventory bought at higher excise duty.

Federation of Automobile Dealers Association (FADA) has estimated that the burden could be to the tune of Rs 600 crore. And with manufacturers not very forthcoming to help meet this cost, they have now petitioned the government for relief, requesting that excise relief be also applicable on the inventories/stocks available with them as on December 7 (the day the government’s financial package was announced).

Dealers, who are cash-starved because of poor margins and low demand, on Tuesday wrote letters to various ministries, including finance and commerce, as well as to the Planning Commission and Cabinet secretariat for help to “correct the unpleasant, anomalous situation”.

“The automobile dealers, saddled with huge inventories due to slowdown, find themselves in a bind. The automobile retail trade collectively may have to take a hit of Rs 500-600 crore in clearing the existing stocks at the revised prices announced by the manufacturers. We, therefore, request that the benefit of 4% excise duty cut may also be extended to the stocks already lying with the automobile dealers as on December 7,” FADA secretary general Gulshan Ahuja petitioned.

“The situation is particularly bad in two-wheelers where some companies have said they are ready to share only 50% of the burden while the dealer will have to chip in with the rest. This is just not acceptable as dealers are cash-crunched and are carrying huge inventories following very poor demand in the market,” a leading dealer said on condition of anonymity.

Another dealer said instead of helping dealers meet the burden, companies were now coming out with indirect schemes that were of no use. “We have been given a ‘target-based’ scheme under which the company will only compensate us if we are able to achieve a particular sales target,” the dealer said.

FADA officials said this was “not at all acceptable” and they were looking at greater engagement and support from the manufacturers. The dealer association has already written to the Society of Indian Automobile Manufacturers (SIAM), the grouping of auto manufacturers, for support. “We hope that the manufacturers would come forward to compensate the automobile dealers for the inventories already held by them,” it said in a letter to SIAM.

Rail Offices to have Biometric Security

By Ayaan Khan

The Railways has drawn up a major plan to bolster its security by introducing biometric system for controlling access to its vital offices. The move has been taken keeping in mind the heightened threat from terrorists and naxalites.

The security aspect of the plan has also been urgently incorporated in the “World Class Station (WCS) project”. Bidders for this project—over 86 hectares of land area in Delhi—have to ensure that every office in the multi-storied building has foolproof security.

Access to all vital railway offices will be controlled through the biometric system or smart cards, ensuring that only authorised officials enter them. These offices include the control room (from where all train movements are controlled and planned), the railways internet system, the PRS data base (which contains vital information on trains, passengers, their identity and movement), and the cash reserve office (where between Rs 3.5 lakh and Rs 4 lakh cash is handled in New Delhi every day).

There will be an electronic surveillance system on all floors of the railway building. The parcel areas are being segregated and large scanners are to be installed to scan each and every luggage. Surveillance cameras and bomb detection equipment will be installed in the parking areas, according to a senior railway official.

To ensure that terrorists don’t enter railway stations, there will be strict security check at the peripheral entry of stations. The world class station coming up at New Delhi, which will be replicated at 22 other places, will ensure that entry and exit will be on separate floors. Keeping in mind stations are a public place, the authorities are providing a multi-layered security system, where some offices will be out of bounds for the public.

At present on an average, about 4 lakh people visit New Delhi railway station every day. The WCS coming up here envisages a futuristic plan of accommodating 8 lakh people. To further reduce the pressure, another railway station at Anand Vihar in East Delhi is fast coming up. The railways is constructing two more mega railway stations at Holimbi Kalan in North Delhi and at Bijwasan on the Dwarka-Gurgaon border in South-West Delhi. Several major trains will be shifted to these stations for convenience of passengers. The process of land acquisition for these two terminals is underway.

However, People will be allowed to enter other areas after due scrutiny, the official said.

UN-FARE AIRLINE PRACTICE

By M H Ahssan & Rajat Kapoor

Fliers get vouchers instead of ticket refunds

When Delhi-based software engineer Shruti Das cancelled her trip to Mumbai after the terror attacks last month, she had no idea that her airfare money would never be refunded. Das, who had made the bookings through an airline call centre, was handed over a voucher by the airline for the same amount. The catch was the voucher had to be availed by her or any of her kin within six months. Instead of a refund of Rs 6,250 after the deduction of cancellation charges, Das is stuck with a voucher she can’t use.

“I wanted the money back. The voucher is of no use as I won’t be travelling for some time now. Even if I do, I might not prefer the same airline,’’ Das said. Getting a refund for a cancelled ticket or a cancelled flight has been a problem for passengers for some time now.

Many airlines are offering passengers a voucher or a ticket of the same amount, which has to be availed of within a stipulated period; otherwise, the amount is forfeited. This practice has not gone down well with fliers.

“In case I try to use the voucher, I will end up paying more as the fare may increase,’’ said another passenger, who was offered a coupon by an airline. This passenger, who had to board a Bhubaneshwar-Kolkata flight, was told at the last minute that the aircraft would take a detour to at least three other places.

“This flight would have taken longer. I thought it best to cancel and book another flight. Instead of a refund, the airline gave me a coupon to be used within three months,’’ she said.

Experts said the financial condition of airlines made it difficult for them to pay back the passengers. “Once a ticket is bought, the money is ‘absorbed’ by the airline. It is difficult for them to shell it out again. They offer these coupons, which might help them retain the passenger and get them more money as the price of the ticket will only increase,’’ Air Passengers’ Association of India chairman Sudhakar Reddy I said.

“Whatever be the condition, passengers shouldn’t be paying for it,’’ he said, adding that his most of the complaints registered at his organisation were about ticket refunds.

UN-FARE AIRLINE PRACTICE

By M H Ahssan & Rajat Kapoor

Fliers get vouchers instead of ticket refunds

When Delhi-based software engineer Shruti Das cancelled her trip to Mumbai after the terror attacks last month, she had no idea that her airfare money would never be refunded. Das, who had made the bookings through an airline call centre, was handed over a voucher by the airline for the same amount. The catch was the voucher had to be availed by her or any of her kin within six months. Instead of a refund of Rs 6,250 after the deduction of cancellation charges, Das is stuck with a voucher she can’t use.

“I wanted the money back. The voucher is of no use as I won’t be travelling for some time now. Even if I do, I might not prefer the same airline,’’ Das said. Getting a refund for a cancelled ticket or a cancelled flight has been a problem for passengers for some time now.

Many airlines are offering passengers a voucher or a ticket of the same amount, which has to be availed of within a stipulated period; otherwise, the amount is forfeited. This practice has not gone down well with fliers.

“In case I try to use the voucher, I will end up paying more as the fare may increase,’’ said another passenger, who was offered a coupon by an airline. This passenger, who had to board a Bhubaneshwar-Kolkata flight, was told at the last minute that the aircraft would take a detour to at least three other places.

“This flight would have taken longer. I thought it best to cancel and book another flight. Instead of a refund, the airline gave me a coupon to be used within three months,’’ she said.

Experts said the financial condition of airlines made it difficult for them to pay back the passengers. “Once a ticket is bought, the money is ‘absorbed’ by the airline. It is difficult for them to shell it out again. They offer these coupons, which might help them retain the passenger and get them more money as the price of the ticket will only increase,’’ Air Passengers’ Association of India chairman Sudhakar Reddy I said.

“Whatever be the condition, passengers shouldn’t be paying for it,’’ he said, adding that his most of the complaints registered at his organisation were about ticket refunds.

UN-FARE AIRLINE PRACTICE

By M H Ahssan & Rajat Kapoor

Fliers get vouchers instead of ticket refunds

When Delhi-based software engineer Shruti Das cancelled her trip to Mumbai after the terror attacks last month, she had no idea that her airfare money would never be refunded. Das, who had made the bookings through an airline call centre, was handed over a voucher by the airline for the same amount. The catch was the voucher had to be availed by her or any of her kin within six months. Instead of a refund of Rs 6,250 after the deduction of cancellation charges, Das is stuck with a voucher she can’t use.

“I wanted the money back. The voucher is of no use as I won’t be travelling for some time now. Even if I do, I might not prefer the same airline,’’ Das said. Getting a refund for a cancelled ticket or a cancelled flight has been a problem for passengers for some time now.

Many airlines are offering passengers a voucher or a ticket of the same amount, which has to be availed of within a stipulated period; otherwise, the amount is forfeited. This practice has not gone down well with fliers.

“In case I try to use the voucher, I will end up paying more as the fare may increase,’’ said another passenger, who was offered a coupon by an airline. This passenger, who had to board a Bhubaneshwar-Kolkata flight, was told at the last minute that the aircraft would take a detour to at least three other places.

“This flight would have taken longer. I thought it best to cancel and book another flight. Instead of a refund, the airline gave me a coupon to be used within three months,’’ she said.

Experts said the financial condition of airlines made it difficult for them to pay back the passengers. “Once a ticket is bought, the money is ‘absorbed’ by the airline. It is difficult for them to shell it out again. They offer these coupons, which might help them retain the passenger and get them more money as the price of the ticket will only increase,’’ Air Passengers’ Association of India chairman Sudhakar Reddy I said.

“Whatever be the condition, passengers shouldn’t be paying for it,’’ he said, adding that his most of the complaints registered at his organisation were about ticket refunds.

UN-FARE AIRLINE PRACTICE

By M H Ahssan & Rajat Kapoor

Fliers get vouchers instead of ticket refunds

When Delhi-based software engineer Shruti Das cancelled her trip to Mumbai after the terror attacks last month, she had no idea that her airfare money would never be refunded. Das, who had made the bookings through an airline call centre, was handed over a voucher by the airline for the same amount. The catch was the voucher had to be availed by her or any of her kin within six months. Instead of a refund of Rs 6,250 after the deduction of cancellation charges, Das is stuck with a voucher she can’t use.

“I wanted the money back. The voucher is of no use as I won’t be travelling for some time now. Even if I do, I might not prefer the same airline,’’ Das said. Getting a refund for a cancelled ticket or a cancelled flight has been a problem for passengers for some time now.

Many airlines are offering passengers a voucher or a ticket of the same amount, which has to be availed of within a stipulated period; otherwise, the amount is forfeited. This practice has not gone down well with fliers.

“In case I try to use the voucher, I will end up paying more as the fare may increase,’’ said another passenger, who was offered a coupon by an airline. This passenger, who had to board a Bhubaneshwar-Kolkata flight, was told at the last minute that the aircraft would take a detour to at least three other places.

“This flight would have taken longer. I thought it best to cancel and book another flight. Instead of a refund, the airline gave me a coupon to be used within three months,’’ she said.

Experts said the financial condition of airlines made it difficult for them to pay back the passengers. “Once a ticket is bought, the money is ‘absorbed’ by the airline. It is difficult for them to shell it out again. They offer these coupons, which might help them retain the passenger and get them more money as the price of the ticket will only increase,’’ Air Passengers’ Association of India chairman Sudhakar Reddy I said.

“Whatever be the condition, passengers shouldn’t be paying for it,’’ he said, adding that his most of the complaints registered at his organisation were about ticket refunds.