Newspaper Summary 230726

 

Government plans aviation reforms to spur new airlines

FLIGHT PLAN. New policy to review 0/20 rule, licensing norms, ownership structures Rohit Vaid New Delhi

Against the backdrop of an increasingly concentrated domestic aviation market, the Centre is preparing a comprehensive package of structural reforms aimed at lowering barriers to setting up new airlines, intensifying competition and attracting fresh investments across the aviation ecosystem.

The Ministry of Civil Aviation is reviewing key regulatory provisions governing the establishment and expansion of airlines, including the 0/20 rule, licensing norms, pilot availability and ownership structures, as part of a broader overhaul intended to simplify market entry while maintaining safety and regulatory oversight, sources aware of the deliberations said.

MORE COMPETITIVE

“The objective is to make aviation more competitive by reducing unnecessary regulatory barriers for setting up new airlines while maintaining safety, security and financial discipline,” sources told businessline.

The proposed reforms come at a time when India’s aviation market has effectively become a two-player contest following the collapse or consolidation of several carriers over the past decade. Policymakers believe a review of the regulatory framework could facilitate the entry of new airlines and broaden private participation as passenger demand continues to grow.

The Ministry is reviewing ownership structures across different segments of the aviation ecosystem as policymakers explore ways to encourage wider private participation and investment.

At present, the regulatory framework creates a clear separation between airport and airline ownership. Consequently, airport operators, including private concessionaires such as Adani Airports and GMR Airports, are restricted from operating airlines under existing concession agreements, while airlines face limitations on participating in airport ownership and operations. Sources said the Ministry is examining whether some of these restrictions could be eased to facilitate integrated aviation businesses while maintaining regulatory oversight.

Among other proposals under consideration is a review of operational and regulatory requirements that industry stakeholders have long argued increase the cost, time and complexity of launching scheduled airline operations. These include the 0/20 rule, under which an airline can commence international operations only after deploying at least 20 aircraft, or 20 per cent of its total fleet, whichever is higher, on domestic routes.

PILOT AVAILABILITY

The Ministry is also examining the existing airline licensing framework, minimum fleet deployment requirements, pilot availability and recruitment norms, and other operational provisions that influence market entry.

The review assumes significance as the government prepares to privatise another batch of airports and seeks to broaden private investment across the sector.

The reforms are expected to be implemented through amendments to existing rules, changes to DGCA regulations and, where necessary, Central policy.

‘US-India trade deal could be signed in 3-4 months’

Manila

A long-awaited US-India trade agreement could be signed within the next three to four months, a senior US official said on Wednesday, indicating negotiations between the two sides have been virtually completed. “The deal... is there. We literally have the paper,” the US official said on condition of anonymity on the sidelines of the Asean Foreign Ministers' meeting in Manila.

What remains outstanding, the official said, is Washington's completion of its Section 301 trade investigations. The statute covers unfair trade practices and allows the US to impose tariffs or take other retaliatory measures.

Washington and New Delhi have been negotiating a bilateral trade agreement to expand market access and lower trade barriers as part of efforts to deepen economic ties. Asked when the agreement could be concluded, the official replied: “Maybe another three, four months.”

REUTERS

Trump’s generic drug tariffs threat ‘not practical’, says Indian pharma

PT Jyothi Datta & G Naga Sridhar Mumbai/Hyderabad

For the first time, generic drugs have been actively brought into the tariff conversation by US President Donald Trump, who outlined a graded timeline starting at zero from August 1, 2026, and increasing to 200 per cent from August 2029.

While the road ahead remains unclear, Indian pharmaceutical industry representatives said the proposed tariffs cannot be absorbed and would be passed on to the US consumer.

Namit Joshi, Chairman, Pharmaceuticals Export Promotion Council of India (Pharmexcil), indicated that [absorbing such costs] is a “remote possibility”. He noted that prevailing uncertainty has already dented exports to the US, which stood at $9.7 billion in 2025-26 compared to $10.5 billion in 2024-25. Indian drugs account for about 40 per cent of the generics prescribed in the US.

PRICE HIKE

“We have been through these cycles. It is not practical to move production to the US. We have to raise prices in the US,” said Erez Israeli, CEO of Dr Reddy’s, commenting on the development.

Priyanka Chigurupati, Executive Director, Granules India, stated that generic medicines account for nearly 90 per cent of prescriptions in the US healthcare system. Imposing such steep tariffs would significantly affect the affordability of these essential medicines.

Major Indian drugmakers with a significant presence in the US market include Aurobindo Pharma, Lupin, Dr Reddy’s Laboratories, Sun Pharma, Granules, Glenmark, Senores Pharma, and Piramal Pharma.

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), emphasized that India has long been a trusted partner in supplying affordable medicines to American patients.

MEDICINE SECURITY

“Leading Indian pharmaceutical companies have a strong US presence with over 40 facilities, supporting American jobs and investing in manufacturing, research, and a resilient supply chain,” Jain added.

India’s April-June LPG imports lowest in 8 years

Rishi Ranjan Kala New Delhi

The import of liquefied petroleum gas (LPG) in the April-June quarter of the current financial year was the lowest for the period in the last eight years, with the closure of the Strait of Hormuz (SoH) choking out more than half of India’s domestic consumption.

According to the Petroleum Planning & Analysis Cell (PPAC), India imported roughly 2.85 million tonnes (mt) of LPG in Q1FY27 on a provisional basis, a de-growth of 45 per cent compared to Q1FY26, and a 34 per cent decline compared to Q1FY25.

India imported a record 5.2 mt of the key cooking fuel in Q1FY26. Prior to Q1FY27, the lowest import for the period was recorded in Q1FY19 (2.82 mt). The world’s top LPG consumer imports roughly 60 per cent of its domestic demand, of which 90 per cent comes from the Middle East Gulf (MEG) with a majority of the cargoes transiting the SoH.

LPG imports fell sharply from above 2 mt per month in January-February 2026 to around 1-1.2 mt a month in March-May, with lower MEG availability partly offset by higher US inflows.

LARGEST SUPPLIER

Washington, which was India’s fifth largest LPG supplier till January 2026, jumped a spot to become the fourth largest, replacing Kuwait a month later.

However, the fresh conflict in West Asia (from February 28) propelled the US to become the top supplier to the world’s second largest LPG consumer for four consecutive months beginning March 2026.

Sumit Ritolia, Kpler’s Lead Research Analyst for Refining & Modeling, recently told businessline that India remains structurally dependent on Gulf supply, though sourcing patterns shifted during recent disruptions.

Bab el-Mandeb blockade by Houthis can push up oil prices, freight rates

SUPPLY THREAT. Any escalation in tensions could have far-reaching consequences for regional energy markets Rishi Ranjan Kala New Delhi

The Houthis threat to block Saudi Arabia’s crude oil cargoes through the Bab el-Mandeb Strait can adversely impact refined products supply and overall availability of crude oil while pushing up freight costs, a scenario that can further inflate India’s already high energy import bill, if the blockade extends.

Already, by Wednesday evening, Brent prices were rising, trading at $93.82 per barrel and WTI was at $86.68 a barrel.

Refiners and trade sources said the scenario where the traffic is again thinning on the Strait of Hormuz, coupled with blockade of the Bab el-Mandeb Strait — the world’s two most important energy chokepoints — will inflate crude oil prices as Saudi Arabia is a major supplier to Japan and South Korea. Besides, the prices of diesel cracks will rise further as refined product supply will also be threatened if the blockade continues.

Another issue will be shipping rates as vessels will have to take longer routes to bypass the chokepoints, which would tie up more tanker capacity and increase delivered freight costs for Asian refiners.

HIGH FREIGHT COSTS

Kpler emphasised that the Red Sea had emerged a strategic chokepoint on a par with the Strait of Hormuz for Asian refiners. Any escalation would directly threaten refinery runs, crude availability, freight costs and regional product supply.

Nearly 6-7 million barrels per day (mb/d) of crude currently transits the Bab el-Mandeb, with flows predominantly moving north to south. Around half of these volumes are Saudi crude loaded from Yanbu, while most of the remainder is Russian crude bound for India, with smaller volumes heading to China, it added.

Sumit Ritolia, Kpler’s Lead Research Analyst for Refining and Modelling, pointed out that Saudi Arabia has significantly expanded its bypass of the Hormuz, with Yanbu exports reaching 4.14 million barrels/day in June, effectively rerouting around 64 per cent of the volumes traditionally exported via Ras Tanura.

“While this reduces the reliance on Hormuz, it also makes the Red Sea/Bab el-Mandeb corridor increasingly critical. Escalation and disruption would have immediate consequences for Asian refiners, particularly India, South Korea and Japan, which rely heavily on these crude flows,” he added.

S&P Global Energy said the Houthis’ threat of a maritime embargo on Saudi Arabian ports in the Red Sea could raise the possibility of wider confrontation in the broader US-Iran conflict. Such a move could threaten navigation to key Saudi Red Sea ports, including Yanbu, Jeddah and Jizan.

Japan can catalyse India’s circular bio-economy

Pratap Singh Birthal

The ongoing geopolitical conflict in West Asia has exposed India’s vulnerability to disruptions in global energy and fertilizer supply chains. India imports over half of its liquefied natural gas (LNG) requirements, with approximately 60 per cent originating from the Gulf region. India also sources a significant share of its fertilizer requirements, particularly nitrogenous and phosphatic fertilizers, from this region. Natural gas is also a feedstock for urea production, and India’s reliance on imports of both casts a shadow of dual vulnerability.

Yet, it is paradoxical that one of India’s most abundant energy resources is not found underground but above it, on its farmlands. With a bovine population of more than 300 million, the country produces approximately 1.27 billion tonnes of dung annually. For centuries, dung has been used as a household cooking fuel and organic manure. However, with the expansion of LPG and chemical fertilizers, dung has gradually lost economic importance.

RENEWABLE ENERGY SOURCE

Nonetheless, with scientific management, dung is a tremendous source of renewable energy and organic fertilizer. Recent estimates from the New Delhi-based ICAR-National Institute of Agricultural Economics and Policy Research indicate that this dung can generate nearly 47 billion cubic meters of biogas or 22 million tonnes (mt) of bio-compressed natural gas (bio-CNG) annually, while simultaneously producing over 9 (mt) of organic fertilizers. This can virtually replace both LNG and fertilizer imports. In practice, collecting and processing the entire volume of dung produced is unfeasible. However, if even half of it is used for the production of bio-gas, it could significantly improve the country’s energy and fertilizer security, reduce vehicular pollution, and improve soil health. This also creates new income opportunities for livestock-owning households.

BIO-GAS PARTNERSHIP

India has long recognised the potential of biogas as a source of clean energy. Since the 1980s, the government has encouraged the establishment of household biogas plants. However, their adoption and long-term sustainability have not met expectations because of maintenance challenges and limited technical support.

To unlock the potential of dung for clean energy and organic fertilizers, the Ministry of Cooperation and Japan’s Ministry of Economy, Trade and Industry (METI) launched the India-Japan Cooperative Biogas for Growth (CBG) initiative at the India-Japan Summit on July 2. The initiative aims to establish 1,000 cooperative biogas and organic fertilizer plants across India by leveraging the extensive dairy cooperative network. Japan has extensive experience with biogas plants and waste management.

India’s dairy sector is dominated by smallholders, with most households owning two to three animals. Individually, these farmers produce little dung, making its collection and transport uneconomical. However, India has one of the world’s largest dairy cooperative networks, with over 2.3 lakh village dairy cooperative societies serving nearly 20 million producers. This network can support dung aggregation, ensuring feedstock supply, reducing transaction costs, and sharing the benefits of biogas and organic fertilizer production among participating farmers.

SUCCESSFUL MODELS

Successful models already exist. A notable example is Maruti Suzuki India Ltd’s partnership with Banas Dairy in Gujarat to procure dung for producing compressed biogas and organic fertilizers. Similarly, Adani TotalEnergies Biomass Ltd has established a large CBG plant at Barsana, Mathura, Uttar Pradesh, sourcing dung from Shri Mataji Gaushala.

The India-Japan initiative should be regarded not only as a clean energy programme but also as a catalyst for developing a circular rural bio-economy. Unlike most renewable energy technologies, biogas simultaneously generates clean energy, recycles nutrients, enhances soil health, reduces greenhouse gas emissions and creates rural employment opportunities. However, the programme’s success will rely more on the long-term commercial viability of the established plants than on their coverage.

Priority should be given to developing cost-efficient feedstock aggregation systems at the village level, transparent pricing mechanisms for dung, and a gas distribution infrastructure. Simultaneously, organic fertilizers produced from biogas plants must be integrated into mainstream fertilizer markets through quality standards, certification, branding, and production-linked incentives in the initial years.

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The writer is Distinguished Fellow, Research and Information System for Developing Countries, New Delhi

Broken system

Students deserve reforms, accountability; not police action

The July 20 police crackdown on unarmed protestors in central Delhi spotlights the failure of the government to quickly address issues that have eroded students’ faith in the education system. From repeated controversies surrounding NEET to mounting concerns over CBSE’s digital evaluation process, what began as isolated grievances has hardened into a broader crisis of trust. The Centre is on the defensive, as perhaps never before.

In this context, firing teargas shells and baton-charging unarmed protestors was a misstep of monumental proportions. Scores of students are in Delhi’s hospitals, some with pellet injuries. One student was on ventilator support. There is palpable tension at the protest site in Jantar Mantar where thousands of students and their concerned parents are continuing to assemble and demand the resignation of Education Minister Dharmendra Pradhan.

This anger did not emerge overnight. It has accumulated over examination cycles, particularly since the 2024 NEET controversy, when 67 candidates secured a perfect score of 720/720 with six toppers originating from a single examination centre in Jhajjar, Haryana. The National Testing Agency (NTA), which conducts NEET, initially attributed abnormal scores to “grace marks” awarded for lost time. Later, investigations by the Bihar police and the Central Bureau of Investigation (CBI) uncovered an organised, multi-State racket. The Supreme Court concluded that the paper leak was an “undisputed fact”, but did not cancel the exam. The Ministry of Education said it had set up a committee to overhaul NTA operations.

Such assurances have done little to restore confidence. Fresh controversies surrounding this year’s examination process have reinforced perceptions that infirmities within the system remain intact. The NTA has had to cancel the NEET exam undertaken by over 22 lakh students when leaked ‘guess papers’ matched up to 140 exam questions in chemistry and biology. A re-examination was scheduled. In the intervening period of 37 days between the two tests, an estimated 12 students committed suicide. Families and police accounts pointed to uncertainty and the emotional toll surrounding the cancelled exam and the upcoming re-test as the reason for these suicides. Equally troubling was the controversy over CBSE’s badly executed shift to on-screen evaluation.

The official response has been marked with an almost Kafkaesque apathy. The government must now recognise that this is no longer simply an examination controversy; it is a crisis of institutional legitimacy that needs to be addressed by serious reforms. Accountability cannot stop with lower-level officials or committees of inquiry. The need for empathy cannot be overstated. Students who feel their futures have been compromised should be heard, not dispersed by force. Restoring confidence will require a willingness to initiate systemic reforms and fix accountability — at all levels, perhaps not excluding the Minister.

Bayer’s Trance to help cotton farmers manage sucking pests

Our Bureau Bengaluru

Bayer has announced the launch of Trance, an innovative insecticide designed to help cotton farmers effectively manage sucking pest complexes, including aphids, jassids and whitefly nymphs.

Trance delivers broad-spectrum control while promoting healthier crops, improved productivity and enhanced farmer profitability, the company said in a statement.

Trance will be available in 100 ml, 220 ml and 500 ml packs.