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DELHI, MARCH 08 : Discrimination and neglect are threatening women’s very survival in the Asia-Pacific region, where women suffer from some of the world’s lowest rates of political representation, employment and property ownership. Their lack of participation is also depressing economic growth. Those were some of the findings of the United Nations Development Programme (UNDP)-sponsored 2010 Asia-Pacific Human Development Report launched today. “Empowering women is vital for achieving development goals overall, and for boosting economic growth and sustainable development,” said UNDP Administrator Helen Clark, in presenting the Report: Power, Voice and Rights: A Turning Point for Gender Equality in Asia and the Pacific, here today. “Policy needs to advance gender equality, so that women as well as men can benefit from job creation and investments in social infrastructure.” The Report focuses on three key areas —economic power, political decision-making and legal rights? to analyse what holds women back, and how policies and attitudes can be changed to foster a climb toward gender equality. Asia, the Report asserts, is standing at a cross-road and by putting the right policies in place now, countries in the region can achieve positive change. Lack of women’s participation in the workforce costs the region billions of dollars every year. In countries such as India, Indonesia and Malaysia conservative estimates show that GDP would increase by up to 2-4 percent annually if women’s employment rates were raised to 70 percent, closer to the rate of many developed countries. Fewer women than men are in paid work in every country in the region, with striking contrasts between South Asia and East Asia. Nearly 70 percent of East Asian women are in paid work, well above the global average of 53 percent, in countries such as Cambodia, China, and Viet Nam, for example. In South Asian countries like India and Pakistan fewer than 35 percent of women do paid work. These contrasts in women’s paid work between East and South Asia co-exist in parallel with the higher long-term growth trend of the former. Despite laws guaranteeing equal pay for equal work, women in this region still earn considerably less than men, with the pay gap ranging from 54 to 90 percent. Women “consistently end up with some of the worst, most poorly-paid jobs —often the ones that men don’t want to do, or that are assumed to be “naturally” suited to women,” the Report found. South Asia often comes in second worst in the world in gender equality measures, just above sub-Saharan Africa, while East Asia often fares better in health, education, and employment. For instance, almost half the adult women in South Asia are illiterate –the world’s worst performance–while East Asian and Pacific women’s literacy rates are above the global average. South Asian women can expect to die five years earlier than their men. And more women die in childbirth there ?500 for every 100,000 live births— than in any other part of the world except sub-Saharan Africa.
The problem of “missing girls” ?in which more boys are born than girls, as girl fetuses are presumably aborted, and women die from health and nutrition neglect— is actually growing. Birth gender disparity is greatest in East Asia, where 119 boys are born for every 100 girls. China
and India together account more than 85 million of the nearly 100 million “missing”
women estimated to have died from discriminatory treatment in health care, nutrition
access or pure neglect ?or because they were never born in the first place, the
Report found. Few women hold property. Although women predominate in agriculture, they head only 7 percent of farms, compared to 20 percent in most other regions of the world. “Pervasive gender inequality remains a barrier to progress, justice and social stability, and deprives the region of a significant source of human potential,” the Report concluded. Laws
aren’t helping much. The region is far behind where it could be on basic
issues, such as protecting women from violence, upholding entitlements to property
—even allowing people to divorce in an informed and reasonable way. “Too often, customs or religious beliefs have become a rationale for laws and legal systems to ignore or soft-peddle or even, in the worst cases, justify issues such as discriminatory inheritance practices and the multiple forms of violence that specifically target women,” Anuradha Rajivan, leader of the multinational team that prepared the Report, said. Many
women are also prevented from accessing justice if it involves challenging their
husbands, other family members or the broader status quo, the Report concluded. The Report recommended reforming constitutions, training judicial and law enforcement personnel in gender-sensitive practices and progressively interpreting religious principles ?which recognize the equal value of all human beings. Political quotas to increase women’s political participation, with sanctions for non-compliance, could be necessary. More women should also be enfranchised into party politics; and relied upon as brokers of peace in times of emergency. “Gender equality does not mean sameness, but it encompasses respect for diversity and freedoms,” said Rajivan. “Ultimately, it is about political will, led by public action. But equality cannot be delivered from the top alone —an attitudinal change in every one of us is necessary for a genuine transformation. WOMEN
YELL NO GENDER BIAS IN PSUs , ARE AT EASE IN THEM Thesynergyonline
Economic Bureau NEW
DELHI, MARCH 06 : The
study which is based on a sample size of 773 working women across 11 States namely,
Ahmedabad, Bangalore, Kolkata, Chandigarh, Chennai, Delhi, Gurgaon, Hyderabad,
Ludhiana, Mumbai and Pune, however, adds that working women find banking, financial
sector, power and petroleum including consultancy the most luring in government
undertaking. Releasing
findings of the ASSOCHAM Study, it’s President Dr. Swati Piramal said that
females engaged in BPO/KPO sector are least satisfied from their current jobs
that averaged to 4.00 on the scale of ten. It is found that ladies employed
in this particular sector feel lack of personal growth and development since they
perceived less room of theirs in decision making process that there is hardly
any flexibility in working times and lot of pressures are exerted on them to deliver
allocated targets. Most
critical problems faced by working women are also in areas of agro-based industries,
economic and social organization, hospitality sector, information technology,
media and entertainment and merchandise. In all these sectors, the satisfaction
levels hovers around close to a scale of 4. 60% of the working women employed
in these identified sectors have expressed their resentment and thereby got this
satisfaction level close to a scale of 4. Nearly
70 percent of working women engaged in PSUs in areas of banking, financial sector,
power and petroleum including consultancy feel that these sectors provided them
the optimum satisfaction with virtually no general biases and sufficient job and
personal security and thus attained a satisfaction at a scale of 7. The Survey also revealed that employer/bosses of female employee’s generally has more trust on male rather than female employees/officers since women executives are found to be weaker at multi tasking and largely intent to quit.
Male bosses with female subordinates receive the high amount of mentoring including
collegial social report, coaching and task mentioning, whereas female bosses with
women employees report more psychological support, loyalty, intuitiveness and
compassion for work. Out of total working females, nearly 29 per cent constituted a share of middle level and entry level respectively, the managerial qualities of men and women are often different, their style has some effect on subordinates work experiences and related outcomes. The sample constituted 29 per cent of the total respondents enjoying middle level managerial posts. (editor@thesynergyonline.com) WITH CAGR OF 20%, DOMESTIC HERBAL INDUSTRY LIKELY TO REACH RS. 15,000 CRORE BY 2015 Thesynergyonline Economic Bureau NEW
DELHI, MARCH 05 : In
a study brought out by ASSOCHAM on Herbal Industry and Global Market 2015, it
is pointed out that India’s rich resource of medicinal plants and traditional
treasure of knowledge in this area, its share at present is considered very meager.
A quick estimate of the potential reveals that India can generate raw stock of
around Rs. 300 billion and easily achieve around Rs.150 billion value added products.
Thus, India is hardly able to exploit less than 50 percent of its potential. Interestingly
both raw materials (herbs) and herbal products have ready market globally. Releasing
the study, ASSOCHAM Secretary General, D.S.Rawat said that ideally, the niche
market that India can focus on include Ayurvedic Medicines and Dietary Supplements
(including health drinks), extracts, Oils and other derivatives , skin care
and beauty aids. According
to the study, the Indian domestic market can be broadly segmented into two categories.
The first one will cover raw materials required by the industrial units and direct
consumption for household remedies, whereas the second category will cover ready
to use finished medicines, health supplements, etc. There
is a strong demand for raw stock which mainly comprises Amla, Isabgol, Senna,
Henna, Ashwagandha, Aloe-vera and Myrobalans (Hartaki), which accounts for over
75 percent of the raw materials used in Ayurvedic preparations. In terms of volume,
it is estimated that current consumption of the key raw ingredients (as mentioned
above) totals approximately 400,000 – 500,000 MT. With
value addition, the market for herbal based products is around Rs. 7,500 crores,
which is roughly the current size of the Indian market. Globally,
dependence on herbal medicines, dietary supplements and skin and beauty aids will
continue to gain greater share in view of the awareness and comfort level which
is akin to the use of organic food products. A quick/indicative estimate of the
market potential globally reveals the following breakdown. The
study has recommended that India’s thrust in the export market needs to be
focused to achieve the targeted growth and market share. While the ethnic
Indian population outside India is utilizing Indian herbal products in a significant
way, there is a compelling need to generate awareness among the locals in foreign
countries with regard to Indian products, besides meeting the quality standards
in the advanced countries. (editor@thesynergyonline.com)
Thesynergyonline Economic Bureau NEW
DELHI, MARCH 05: The Stable Outlook factors in the different factors influencing projects that are still in construction phase and for those that are currently in operation. The ratings of Fitch-rated projects in India, especially for those under construction, are at low levels. Construction delays continue to be a major irritant, which stems from a number of factors outside the control of project sponsors. These include, land acquisitions and regulatory approvals, which can delay the timely completion of projects. In the absence of rigorous adherence to contractual provisions, project companies and sponsors have had to take on the burden of additional costs, either through the drawdown of available cash, the raising of equity, and/or the issuance of debt. However, government authorities responsible for granting concessions also seemed willing to extend the schedule for project delivery. "Furthermore, banks also recognise these systemic constraints, and seem to be willing to reschedule project loans by postponing commencement of principal moratorium," says William Streeter, Managing Director & Head of Global Infrastructure & Project Finance, Asia Pacific. Fitch notes that this spirit of accommodation/adjustment (or 'jugaad') adopted by various project counterparties (including sponsors, bankers, contractors and the government) has prevented large-scale rating downgrades. "Nevertheless, the capacity for 'jugaad' is limited and in certain cases, projects remain vulnerable to specific event risks such as unanticipated roadblocks to timely completion, leading to the possibility that the agency will downgrade selective projects in 2010," adds S.Nandakumar, Senior Director, Global Infrastructure & Project Finance for Fitch Ratings India. On the other hand, Fitch-rated operating projects appear to have weathered the economic slow down without deterioration in credit profiles (beyond the initial stress scenarios). The pick-up in user demand and revenue growth in recent months has contributed to Fitch's Stable Outlook for the sector. Though the economic crisis has dampened the growth rates in usage for the transportation sector and some projects are struggling to achieve base case forecasts, other operating projects in the sector are displaying resilience. Consequently, Fitch may upgrade a selected number of operating projects in 2010. Outside of Fitch's rated universe, the agency views the Indian infrastructure sector as a whole as largely stable in 2010. This stems from a recovery in the sector following the economic slowdown witnessed in the second half of FY09. The recovery was aided primarily by three factors: (a) renewed urgency displayed by the government to bid out new projects; (b) demand pick-up on the back of higher GDP growth; and (c) favourable financial environment, including a buoyant equity market and banks awash with liquidity. However, Fitch is concerned that existing financing structures and debt levels do not seem adequate to address common project risks, such as the propensity for execution delays, cost overruns, demand over-estimation without making allowance for economic cycles, and the lack of a strong regime for contract observance and enforcement. Such
concerns have resulted in a number of key event-triggered ratings watches and
some downgrades in the past year. Though risk tolerance thresholds have moved
up for both developers and lenders, particularly the latter, short of changes
in the mix of project equity and debt and heftier project contingencies, Indian
project finance will struggle to overcome the problems seen pre-economic crisis.(editor@thesynergyonline.com)
$26 BILLION IN MARKET CAPITALISATION HAS MOVED FROM NASDAQ TO NYSE IN TWO MONTHS Thesynergyonline Economic Bureau NEW
DELHI, MARCH 05 : Earlier
this week, Inergy LP and Inergy Holdings LP, two related companies in hydrocarbon
energy production and retail distribution to residential, commercial, industrial,
and agricultural customers had announced plans to list on the NYSE, shifting from
the Nasdaq exchange where they are currently trading. "We are looking forward to trading on the New York Stock Exchange, " said Schwab CEO Walt Bettinger. "Today, the NYSE is the listing home to so many household names in financial services, joining them will place us in a natural comparative set. " “Inergy’s
move to the NYSE positions us more closely with the energy industry and large
cap MLP peers in our sector, and we believe our investors will benefit from increased
trading liquidity and visibility,” said John Sherman, President and Chief
Executive Officer. “We are excited to be partnering with the premier global
equity securities exchange as we continue to grow our company and access capital
markets in the future.” (editor@thesynergyonline.com)
LIBERALISING GLOBAL TRADE IN AGRICULTURE WELFARE ENHANCING FOR INDIA Thesynergyonline Economic Bureau
He was presenting the research study titled 'Doha Round Impacts on India ' in a seminar jointly organised by the Centre for WTO Studies and CUTS International at the Indian Institute of Foreign Trade, New Delhi today. The
study, conducted by CUTS International, deals with the effects of multilateral
trade liberalisation, as envisaged as an outcome of the Doha Round of WTO negotiations
covering agriculture, industrial goods and services sectors, on economic growth
as well as poverty reduction in India. Amit S Ray, Professor, ICRIER, pointed out that a major hindrance faced by negotiators from India and developing countries is the lack of well researched inputs to assist trade policy formulation. In this respect, there are certain serious policy implications and alternative scenarios emerging out of the study which should be considered more seriously. It is crucial for India to advance negotiating positions based on similar rigorous studies for deriving more concrete and tangible outcomes from the DDR. Bipul Chatterjee, Director, CUTS Institute for Regulation and Competition, one of the discussants in the seminar, said that a novel feature of the study is its consideration of trade in services which would throw up immense opportunities for India . The
seminar was attended by about 30 participants representing academia, media and
policy making bodies.
(editor@thesynergyonline.com)
UNDP CHIEF HELEN CLARK VISITS INDIA FROM MARCH 5 -10 Thesynergyonline Economic Bureau NEW
DELHI, MARCH 04 : Helen Clark was appointed as UNDP head in April 2009 and also serves as the Chair of the UN Development Group which unites 32 UN agencies. Prior to her appointment at UNDP, Miss Clark served as Prime Minister of New Zealand from 1999 to 2008. This is Miss Clark's first visit to India as UNDP Administrator and will be an opportunity for her to review important areas of cooperation between UNDP and the Indian government. India is emerging as a key player in global forums and is rapidly enlarging South-South cooperation with its neighbours, as well as in other regions. India has also created several successful innovative programmes in social development and has a wealth of knowledge that can be shared with other developing countries. Helen Clark's discussions with Indian officials will explore how the UNDP-India partnership can be expanded to support the sharing of these innovative programmes with other countries. She is also scheduled to meet with the Minister of External Affairs, Mr. S.M. Krishna; Deputy Chairman of the Planning Commission, Dr. Montek Singh Ahluwalia; and the Minister of Environment and Forests, Mr. Jairam Ramesh. Miss Clark will arrive in Delhi on 05 March and will travel to Bhilwara district in Rajasthan on Saturday to visit the Indian government's flagship programme -- Mahatma Gandhi National Rural Employment Guarantee Programme or NREGP -- that guarantees 100 days of paid work to any household that demands it. She will visit UNDP-supported projects within this programme, including functional literacy classes conducted for NREGP workers at worksites; skill-building training centre for workers; information kiosk and community radio programmes to enhance legal awareness about workers' rights; payment of wages to workers through bank business correspondents; and others. Helen Clark will be accompanied by the Union Minister for Rural Development, Dr. C. P. Joshi. In Bhilwara Miss Clark will also meet women Panchayat leaders to witness the revolutionary change that has been brought about through women's participation in decision making at the local level. UNDP supports the Ministry of Panchayati Raj in capacity building of locally elected representatives, particularly women representatives. In Jaipur, she will also call on the Chief Minister of Rajasthan, Mr. Ashok Gehlot. On 08 March, Miss Clark will release the UNDP-sponsored Asia Pacific Human Development Report -- Power, Voice and Rights: A Turning Point for Gender Equality for the Asia and the Pacific -- in New Delhi along with senior Indian leaders to mark the International Women's Day. Following the global release of the report, Miss Clark will chair a high-level panel discussion with luminaries from across the Asia-Pacific region. Wrapping up her visit, Miss Clark will deliver a key note address at a symposium on 'Millennium Development Goals and Human Development in India: Achievements and Challenges' on 09 March. Jointly organised by the Institute of Human Development and the UNDP India, this symposium and panel discussion will be chaired by parliamentarian Dr. M.S. Swaminathan who is known as the 'Father of the Green Revolution in India'. Panelists include Prof. Kaushik Basu, Chief Economic Advisor to the Government of India, and Prof. Bina Agarwal, Director and Professor at the Institute of Economic Growth, Delhi University. Miss Clark will leave India on March 10 . (editor@thesynergyonline.com) BRING
IN CHANGES IN GUIDELINES TO CREATE MORE STOCK EXCHANGES , SAYS ASSOCHAM Thesynergyonline Economic Bureau
In this regard, the Chamber has demanded changes in guidelines of Securities and Exchange Board of India (SEBI) as regards to opening up of exchanges so that the proposed exchanges are created with no hurdles to ensure better price discovery to investors specifically retail investors with much lesser transaction costs. In a representation addressed to Competition Commission of India by Mr. D S Rawat, Secretary General ASSOCHAM, it is pointed out that the present position in the country is very dismal as regards competition and highly favoured and weighing in favor of National Stock Exchange (NSE). The NSE which commands 98% of turnover in futures and options and has about 70% in cash section needs to be countered with competition. According to ASSOCHAM, the various reformative steps taken by SEBI in the last few years have not been able to bring value competition in the market place which has resulted in almost monopolistic status of National Stock Exchange. With
a view to bring sufficient competition in the capital markets, the regional stock
exchanges should be encouraged with fiscal benefits so that regional companies
are attracted to be listed their for better price discovery and lower charges
to investors. The suggested fiscal benefits can be in the form of concessional
security transaction tax, exemptions Therefore, the SMEs should be permitted to be listed in such regional stock exchanges after the suggested listing norms of SEBI for listing SMEs are further fine tuned to address concern for capital raising costs, said Mr. Rawat. The currency derivative market in India is of recent origin. While NSE commenced trading in currency derivatives on 29th August 2008, MCX Stock Exchange which received recognition under SCR Act from SEBI on 18.9.2008, commenced trading in currency derivatives segment on 7th October 2008. As
a result of competition, the combined average daily turnover in these Exchanges
in the currency derivatives segment has increased from Rs.24.20 billion in January
2009 to Rs.284.54 billion in January 2010. While the average daily turnover of
MCX-SX increased from Rs.12.21 billion in January 2009 to Rs.146.17 billion in
January 2010, the average daily The ASSOCHAM representation also points out that the Indian public and consumers have benefited immensely on account of competition in sectors such as telecommunications, banking, insurance and aviation. As a result of competition, the number of wireless subscribers has increased from 7.3 million in June 2002 to little more than 500 million in early 2009. If the government and the regulators encourage competition in the stock market, India can achieve similar results in the securities market with a steep increase in the number of investors, greater financial inclusion and substantial reduction in transaction costs. Greater competition will also strengthen corporate governance in stock exchanges. In
the light of above, there is urgent need to ensure greater competition among stock
exchanges by government and the regulators with a view to providing greater benefits
in the investing public and further developing the securities market. Stock exchanges
need to be allowed to compete in a fair and equitable manner so that the welfare
of the investing public can be maximised. (editor@thesynergyonline.com)
Thesynergyonline
Economic Bureau
However,
the ASSOCHAM president further pointed out that the growth rate of 9 percent for
2011-12 and that of 8.75 percent for coming fiscal would largely depend on accelerating
investment in infrastructure projects and new industries that are the drivers
of the economy. The stimulus package should be withdrawn only in phases as a response
to the developing situation. The
ASSOCHAM Chief said that major challenges for government will be for price management
of food items so that inflation is reduced substantially. Dr.
Piramal also emphasized the need for reducing fiscal deficit from 6.5 percent
of national GDP to 3 percent in phased manner by expediting disinvestment process
and bringing in further administrative and expenditure reforms. Dr.
Piramal also appreciated emphasis of the Survey for containing food inflation
by boosting private investment in agriculture, introducing a single price for
food articles by making food article available in open market and compensating
the needy with food coupons usable anywhere in India. (editor@thesynergyonline.com)
Thesynergyonline Economic Bureau NEW
DELHI, FEB 24 :
Speaking at the inaugural function of the global summit on coal gasification "Coal Gas 2010' organized jointly by Ministry of Coal and Mission Energy Foundation (MEF) in New Delhi today Minister said "proper environmental management and reclamation of mined-out areas need to be focused upon by the producers of coal for increasing the credibility of coal mining in the society. Minister of State (Independent Charge) for Coal has called for concerted efforts on need of adopting clean coal technologies including coal gasification and coal liquefaction for long term sustainability of the coal sector as well as reducing the green house gases.
Speaking at the inaugural function of the global summit on coal gasification "Coal Gas 2010' organized jointly by Ministry of Coal and Mission Energy Foundation (MEF) in New Delhi today Minister said "proper environmental management and reclamation of mined-out areas need to be focused upon by the producers of coal for increasing the credibility of coal mining in the society. He said coal sector must adopt best practices and state-of-the-art technologies for improving production, productivity and safety to be competitive in the market.".
"To promote clean coal technology research, development and deployment more detailed countermeasures are required to ensure the reliability and economy of commercial-scale utilization of clean coal technologies. There is urgent need for adoption of clean coal technologies including coal washing, coal bed methane, coal mine methane, underground coal gasification and coal liquefaction as these are also important in improving the coal usage in an environment-friendly manner" Minister said .
On hurdles in taking up new projects and continuing the ongoing projects mainly on account of delays in obtaining necessary clearances, Shri Jaiswal said that the Ministry of Coal is in constant dialogue with the Ministry of Environment & Forests for expediting the clearances and the State Governments are also being pursued for their cooperation in timely acquisition of land for coal projects and to resolve the issue of rehabilitation of project-affected persons in a mutually agreeable manner.
Calling for augmenting domestic production from all the available resources for meeting the projected demand for energy, the Minister pointed out that the coal demand which reached a level of about 550 million tonnes in 2008-09, is envisaged to be over 2 billion tonnes by 2031-32. While the public sector is leading in production, the Government has increased the number of players by allotting the number of captive blocks to augment the production within the existing legislative framework. The growth in production of 5.4 percent achieved in the past three and half decades would need to increase to over 7 percent in the coming decade in order to match the growing demand for coal, he added. Mr Jaiswal said strengthening the infrastructure for coal movement and coal handling and port infrastructure for facilitating large scale imports are some of the critical areas we need to concentrate on for increasing the production and despatch of coal. He also emphasized a need for large coal consumers like the power sector to adopt technologies for improving the efficiency of energy utilisation from coal in order to reduce emission levels of green house gases.
About 250 global mining experts, engineers, coal equipment manufacturers, representatives from power companies, natural gas companies ,power generation companies, state electricity boards, steel producers and environmentalists are taking part in the two day International Conference on 'Coal Gas 2010'
"Experts attending the two day international summit being organized by Ministry of Coal, Government of India in close association with Mission Energy Foundation , a non profit organization with a theme "Roadmap to Technology Commercialization" will be discussing ways and means increase use of coal gasification as main driver for power , steel, cement and fertilizer sector for improving the efficiency of energy utilisation from coal in order to reduce emission levels of green house gases." Said Dircetor General, Mission Energy and Organising Secretary, Coal Gas 2010.
" Coal Gassification and mining experts from USA, Germany, Australia, Korea, Japan, Malaysia, Denmark and China present key note papers on various subjects including expanding the resource base in coal , new technology and innovations for exploitation of coal, gasification of refineries, clean technologies for high ash Indian coal, underground coal gasification, climate change, improving environment, performance of coal and making it into an affordable reliable energy source" said Mr Kumar
STIMULUS
WILL BE SUBJECT TO FINANCE MINISTRY ALLOCATION TO COMMERCE & INDUSTRY MINISTRY
: SCINDIA Thesynergyonline Economic Bureau NEW
DELHI, FEB 23 : Inaugurating
ASSOCHAM-IMC Exhibition-Conference on `Women Entrepreneurs' here today, Mr. Scindia
said that Commerce and Industry Ministry favored that stimulus package for stressed
segments of exports should continue until these come out of recessionary modes.
The
Commerce and Industry Ministry has already urged the Finance Minister, Mr. Pranab
Mukherjee that he should maintain amount of yearly budgetary allocations for Ministry
of Commerce and Industry at levels extended in the Budget of 2009-10 to enable
the Ministry to extend relief measures for stressed sectors in next fiscal. The
Minister also promised slew of measures in the forthcoming Foreign Trade Policy
to be unveiled by Commerce and Industry Minister in next few weeks so that weavers
and preservers of Indian cottage, small and tiny industries are given sufficient
protection. Mr.
Scindia and Dr. Swati Piramal, ASSOCHAM President gave away 10 Women Entrepreneurs'
awards instituted by ASSOCHAM and IMC for promotion of domestic weaving and saree
makings. The Heritage weavers awards were given away to Ms. Sally Holkar, Ms.
Jamini Peyany, Ms. Rashmi Prasanth Tapadia, Ms. Pooja maheswari, Ms. Shamlu Dudeya,
Ms. Ahalya S. Sarangi, Ms. Sunita Burad, Ms. Sulochna Salvi and Ms. Afroz Jahan.
Among
well known women entrepreneurs present on the occasion comprised Ms. Pratibha
Advani, Ms. Pia Singh, Princess Diya Kumari, Ms. Anuradha Prasad, Ms. Kavita Bhartia,
Ms. Latika Dikshit, Ms. Manik Karanjawala, Ms. Sangeeta Bijlani, Ms. Sara Pilot,
Ms. Shweta Nanda, Ms. Supriya Sule, Mrs. Sheila Kriplani, President, IMC Ladies
Wing, Ms. Sheetal Ansal and Ms. Rashmi Jolly. (editor@thesynergyonline.com)
PRIVATE SECTOR'S ROLE PUTS INDIAN RAIL INDUSTRY ON RIGHT TRACK Thesynergyonline
Economic Bureau MUMBAI,
FEB 22 : New analysis from Frost & Sullivan, Strategic Analysis of the Growth Opportunities in the Indian Rail Industry, finds that the market earned revenues of $48.0 billion in 2009 and is expected to reach $65.0 billion in 2014. The ongoing and proposed Metro Rail projects in several Indian cities, including Delhi and Mumbai, have encouraged large-scale private participation in the areas of providing engines and coaches as well as infrastructure development for both domestic and multinational companies. These projects can expand the reach of railways as a preferred mode of passenger transportation. Apart from persuading private participants, the Indian Railways is also looking to bolster its revenues through the use of technology and investment in port connectivity and rail infrastructure. Meanwhile, the opening up of the container rail segment for private participation has given a huge boost to the cargo segment. Private investments have gone a long way in reducing the infrastructural limitations of the Indian Railways and creating opportunities in the extremely profitable freight transportation services. "Already, the 15 approved operators have gained high volumes of freight from various industries, including transportation of cars by rail, which was not done earlier by the government-owned Container Corporation of India Ltd. (CONCOR)," says Frost & Sullivan Industry Analyst Subir Shah. "Once the ongoing project of Dedicated Freight Corridors becomes a reality, several more participants are expected to join the competition of container rail operations and fulfill the vast demand for rail freight services." Acknowledging the business opportunity presented by the steadily growing freight segment, the Indian Railways plans to invest in connectivity for all major ports. This will allow cargo from/to the hinterlands to be transported directly from/to the port to avoid the bottlenecks of road transportation and existing rail routes. India has the second-largest railway network in the world, covering over 63,600 km and carrying about 30 percent of the nation's cargo. "However, within the rail network, some key routes such as Delhi-Mumbai and Delhi-Kolkata have a utilization of more than 140 percent," notes Subir. "To add to the congestion, there are no dedicated routes for cargo traffic and hence, the cargo traffic not only subsidizes the passenger traffic, but is also accorded lower priority." After being written off as a financially unviable organization by industry experts, Indian Railways has made a dramatic turnaround in the last few years. There has been a paradigm shift from the tariff regime (using freight services to subsidize passenger services) to a focus on freight as a primary growth driver. Meanwhile, Indian Railways' customer-friendly approach to passenger services has ensured that both passenger as well as freight revenues will escalate, throwing open numerous opportunities for companies in diverse segments of railways. India's emergence as a manufacturing hub for various sectors has buoyed the economy and attracted investments in infrastructure as well as hiked demand and consumption. "A sharp rise is expected in the traffic flow between manufacturing centers, ports, and inland container depots (ICDs) over the next four to five years," observes the Analyst. "Owing to the cost benefits of rail transportation, the Indian Railways is likely to gain significant revenues from these trends." If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Ravinder Kaur/ Nimisha Iyer, Corporate Communications, at HYPERLINK "mailto:ravinder.kaur@frost.com"ravinder.kaur@frost.com/ niyer@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail. Strategic Analysis of the Growth Opportunities in the Indian Rail Industry is part of the Automotive & TransportationGrowth Partnership Services program, which also includes research in the following markets: Strategic Assessment of Containerization Trends in India, Strategic Analysis of Air Cargo Market Opportunities in India, Strategic Analysis of Liquid and Gaseous Cargo Transportation Market in India, and Strategic Analysis of Cement Transportation Market in India. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. (editor@thesynergyonline.com) REMOVAL
OF ANTI-DUMPING DUTY ON HIGH GRADE STAINLEES STEEL IMPORT HAILED Thesynergyonline
Economic Bureau NEW
DELHI, FEB 22 : " Withdrawing of proposed anti dumping duty on certain grades and categories of cold rolled stainless steel is a land mark decision as it will support the growth of critical infrastructure related industries in India including Nuclear power plants, refineries, ports, storage sector, Railways including Metro Rail and water desalination plants coming up in a big way in the country" said beaming Mr Y.P.S.Suri, India head of Outokumpu, Finland based leading stainless steel maker. "Ministry of Commerce had initiated a anti-dumping investigations on import of stainless steel at behest of Single manufacturer Jindal Stainless steel in April 2009 and imposed Anti dumping duty and all category of stainless steel including not manufactured in India. High grade stainless steel is importe in the country for manufacturing critical components of machinery and products for petroleum, gas, food processing and automobile industry. " Mr Ramachandran Secretary of Plant Process and Machinery Association of India said . "Finding ways and means to increase per capita steel consumption is the best solution for the steel industry in the country instead of anti dumping duty .We had shelved our Investment plan in India due to the imposition of Anti Dumping Duty which was so badly needed by end users and SMEs in particular" added Mr Suri. (editor@thesynergyonline.com) RIGID
REGULATORY REGIME DELAY PEs FLOW : ASSOCHAM-E&Y Thesynergyonline Economic Bureau NEW
DELHI, FEB 22 : It
further highlights that tardy progress has been observed in recent times in accumulating
PE investments to upgrade India's infrastructure in key areas of roads, highways
including railways is also due to exit time frames and other hurdles that set
aside investment in infrastructure sector apart from other sectors. Releasing
it's findings, ASSOCHAM spokesman said that absence of vibrant bond markets in
India is also a handicap for private equities to keep off India and therefore,
it is highlighted that under developed bond market in India impacts financing
of infrastructure projects. Unlike
other developed nations where vibrant bond markets serves as an alternative avenue
for financing and re-financing, the bond market in India has not grown substantially,
added ASSOCHAM spokesman. Thus,
the under development of bond market in the country poses hurdles in accessing
funds for the sector. PE investors often cite concerns such as unavailability
of long-term fixed rates financing over a long term concession period as one of
the impending factors in infrastructure financing, points out the study. According
to it, delays in getting approvals and a complex regulatory environment as major
factors hindering PE flows in the infrastructure sector. Challenges faced by PE
investors while investing in Indian infrastructure still comprise delay in getting
approvals, complex regulatory environment, delay in financial closure of projects,
long gestation period of the infrastructure projects, non-transparent bidding
process and prevalence of single asset investments. On
the issue of regulatory procedures and long payback periods, the study indicates
that infrastructure projects typically involve a long payback period whereas the
debt that is available for financing infrastructure project matures in a period
of 7-12 years. Meanwhile,
regulatory procedures, delays in project implementation and several unplanned
cost escalation create concerns regarding financial viability of projects and
disrupts free flow of investments by PEs houses. In
addition, investment risks on account of contractual structures, aggressive bidding
or incomplete traffic estimates are some of other key issues confronted by PEs
while investing in infrastructure projects. The
study concludes that exit time frames and regulatory hurdles associated with infrastructure
projects are the characteristics that distinguish investment in this sector from
the rest. On
the future outlook of PE investments, the study, however, adds that despite credit
crisis, PE investors could be positive about returns expected from their investments
in infrastructure projects as India assures lot of prospects in it as it is its
focused area for development. As the infrastructure sector in India continues to evolve and mature over the next 5-10 years, it will pave the way for increasing opportunities for various sub-segments require large capital commitments. Synergies between PE investors and infrastructure industry in India are expected to further strengthen as PE funding is expected to emerge as a vital source of financing to meet major capacity expansion plans of infrastructure companies, concludes the study. (editor@thesynergyonline.com) PMEAC PROJECTS ECONOMY TO GROW AT 7.2% IN 2009-10 WITH UPWARD BIAS Thesynergyonline
Economic Bureau NEW
DELHI, FEB 20 : Mr Vilasrao Deshmukh, Minister of Heavy Industries and Public Enterprises, GoI, in his inaugural address said that India's gross domestic product (GDP) grew by 7.9 per cent during July-September 2009, up from 6.1 per cent in the previous quarter, as per data released by the Central Statistical Organisation (CSO). According
to the latest estimates available on the Index of Industrial Production (IIP),
the index of mining, manufacturing and electricity, registered growth rates of
9.5 per cent, 9.2 per cent and 7.5 per cent, respectively in Q2 of 2009-10, as
compared to the growth rates of 3.8 per cent, 4.9 per cent and 3.2 per cent in
these industries in Q2 of 2008-09. The key indicators of construction sector,
namely, cement and finished steel registered growth rates of 12.6 per cent and
2.1 per cent, respectively in Q2 of 2009-10, as against the growth rates of 5.2
per cent and 3.8 per cent, respectively in Q2 of 2008-09. Mr.
Jayanta Roy, Senior Vice President, ICC, said that India 's manufacturing sector
is on an uptrend with the majority of sectors recording positive trends in the
first half of fiscal year 2009-10, as compared with the corresponding period in
2008-09. The buoyant manufacturing growth in the first half is led by a rise in
production of basic goods, intermediate goods and consumer durables. The
quarterly estimate of GDP for July-September (Q2) 2009-10, according to data released
by the Central Statistical Organisation (CSO), for manufacturing stood at US$
46.42 billion at current prices, 9.4 per cent higher than during the same period
in 2008-09. The
Indian economy clocked a robust 7.9 per cent growth in the second quarter (Q2)
ended September 2009, catapulted by a strong industrial growth powered by stimulus
packages. Manufacturing sector grew by 9.2 per cent in Q2 of 2009-10 against 4.9
per cent in Q2 of 2008-09, according to the latest CSO estimates available on
the Index of Industrial Production (IIP). Major
indicators Nomura's Composite Leading Index (CLI), UBS' Lead Economic Indicator
(LEI) and ABN Amro' Purchasing Managers' Index (PMI), variety of indices that
track activity in vital economic sectors, indicate an upward trend in economy
owing to growth in the manufacturing sector. Praising the timely initiative taken by ICC, Vilasrao Deshmukh stressed that the Indian Chamber of Commerce has been on the forefront of growth for the Indian industry since 1925, and that he was happy to see that in partnership with the DHI the ICC have organised such a timely Summit that will help the Indian
manufacturers put forward their strengths and capabilities. He
said programmes like these added a lot of value to the industry and the Government
is fully behind any initiative on Manufacturing that ICC would undertake to support
the Indian Industry. (editor@thesynergyonline.com)
Thesynergyonline Economic Bureau
The campaign is part of global events marking the second World Day for Social Justice on 20 February, and will bring together in one place diverse voices and views from around the world on the meaning of social justice, especially in times of global economic crisis. The current economic and jobs crisis has made our continuing struggle for social justice harder and even more urgent," said ILO Director-General Juan Somavia. "It is vital that we raise our voices to promote a fairer society. This forum provides an opportunity to do exactly that. On 19 February an initial series of video interviews on social justice will be available featuring Mr. Somavia, Mr. Guy Ryder, General Secretary of the International Trade Union Confederation, (ITUC), Mr. Antonio Peñalosa, Secretary General of the International Organization of Employers (IOE), her Excellency Ambassador Maria Nazareth Farani Azevêdo,Permanent Representative of Brazil to the United Nations Office and other International Organizations in Geneva, Pascal Lamy, Director-General of the World Trade Organization, and Professor Alain Supiot.
"One of the best
ways to get to social justice is decent work: the dignity of work, the dignity
of the human being, the stability of the family,
ITUC General Secretary Guy Ryder said, *Too many governments, too many societies
are willing to say as long as two thirds of the people in the world are doing
OK, we can more or less dispense with the other one third. I think all of us have
to join together and say nobody is dispensable. We have a collective, shared responsibility
to make sure that everybody shares in progress Secretary General of the IOE Mr. Antonio Peñalosa said, "In order to achieve social justice you need to have something to distribute, such as wealth and jobs. They have to come from growth, and reflect a country*s economic reality. That*s why we think that social justice and growth go hand in hand, that one cannot exist without the other". More voices will be added throughout the year. In addition, the site provides links to other websites and documents regarding social justice. (editor@thesynergyonline.com)
Thesynergyonline Economic Bureau NEW
DELHI, FEB 19 : Techshare India 2010 highlights the importance of implementing accessibility standards and complying with different accessibilities laws. The event also exhibits and showcase IT products and services that will allow visitors to browse through the latest in assistive technologies for people with disabilities. The exhibition showcased the role of technology in the lives of people with disabilities. In addition, web accessibility, software accessibility and accessibility on the move for mobiles and PDAs were displayed. One of the highlights of the event was an experiential lab where visitors could get a first hand feel of what it is to have a disability and the role that assistive technology can play in the life of people with disabilities. Speaking on the occasion, the Minister of Social Justice and Empowerment, Mr Mukul Wasnik shared his perspective on the importance of an event like Techshare India 2010. He stressed upon the importance of making the environment inclusive and accessible to people with disabilities. Ms. Shilpi Kapoor, Managing Director, BarrierBreak Technologies, said, "Today technology is playing a vital role in the life of people and has become a necessity but unfortunately it is equally not accessible to all - especially to people with disabilities." "Assistive technology needs to be made available at the formative years which will empower people with disabilities to join the mainstream," she added. Speaking on the occasion, Mr. Kevin Carey, Chair, Royal National Institute of Blind People (RNIB) said, "The key is work together, not throw rocks at each other: Disabled people, governments, industry and commerce, now need to work together to make the promises of the convention real. To find solutions to help industry and commerce design better inclusive Information and Communication Technologies, to find way of getting better adaptive technology into people's hands, and help people develop the new skills they need." Mr. Javed Abidi, Director, National Centre for Promotion of Employment for Disabled People (NCPEDP) expressed his sentiments on the subject and said, "It is very well to have conferences and seminars and meetings, where wonderful things are said and promises made. But what is the ground reality? India has been callous in this area. A blind person can't use an ATM. Nor can he operate a washing machine or a microwave. He cannot watch his favorite show on T.V. with the help of a digital set-top box. It is not that such assistive goods or the technology is not there. The available/ appropriate technology is not applied. As a result, the goods that one needs for day to day life are not accessible or disabled- friendly. Leave alone a policy, India has not even done enough thinking in this regard." Dr. P. Anandan, Managing Director - Microsoft Research Lab India, in his keynote address, said, "To ensure inclusive growth in society, it is imperative to integrate people with special abilities into the mainstream. Technology can go a long way in empowering the specially-abled and help them realize their aspirations. A fundamental consideration for us is to fully integrate accessibility options into every stage in the product lifecycle, from product research, planning, design and development, to testing. Microsoft is committed towards continuously innovating to facilitate the next-generation of accessible technology." The two day exhibition and conference has witnessed participation from more than 500 delegates from government and non-profit organizations, educational institutes and corporate sectors from across the globe; where more than 50 speakers will address the issues related to accessibility standards and law. The exhibition has more than 40 stalls with a display of almost 100 different IT hardware and software products and services for people with disabilities. Some of the key speakers at the conference include Mr. Javed Abidi, Honorary Director, National Centre for Promotion of Employment for Disabled People (NCPEDP), Mr. Kevin Carey, Chair, Royal National Institute of Blind People (UK), Dr. P. Anandan, Managing Director, Microsoft Research, Mr. Om Deshmukh, Research Scientist, IBM India Pvt Ltd; Ms. Janaki Pillai, Ability Foundation among many others from government, non-profit, education institutes, and corporate from across the globe. (editor@thesynergyonline.com)
Thesynergyonline
Economic Bureau NEW
DELHI, FEB 19 : "Coal
has been the world's fastest growing energy sources in recent years. Coal has
an important role to play at a time when we are increasingly concerned with issues
relating to energy security. Coal is a global industry, 20%
HIKE IN DEFENCE OUTLAYS ON CARDS FOR 2010-11: PALLAM RAJU Thesynergyonline
Economic Bureau NEW
DELHI, FEB 18 : This was disclosed here today by Minister of State for Defence, Dr. M M Pallam Raju while inaugurating ASSOCHAM organized International Conference on Indian Defence. The Minister also categorically declared that the government is still reluctant to raise FDI's ceiling in defence sector from existing 26 percent to 49 percent in view of sensitivities involved in defence sector. He
told ASSOCHAM members that despite repeated intense pressures on government and
extensive lobbying from industry, the government was not at all considering any
such proposal given the nature of defence production at this juncture. Dr.
Pallam Raju added that since revenues collection of government have risen significantly
during ongoing fiscal, there is every possibility that Ministry of Defence would
be allocated 15-20% more outlays for next fiscal from Ministry of Finance to support
and fund it's modernization and acquisition drive. Since
defence modernization is one of the top priorities of the government to equip
it's armed forces with latest technologies, higher allocations are required and
indications are their that in Budget proposals for 2010-11, the Finance Minister
will make an increase in defence budget between 15-20 percent, clarified the Minister.
Responding
to a query raised by one of Chamber's members at the Conference on corporatisation
of Ordnance factories, Dr. Raju ruled out possibilities of their privatization,
arguing that workforce engaged in them have given their lifetime to such factories
and government cannot be apathetic to their lot. He,
however, added that in order to make them competitive, the government has stopped
giving them certain tax benefits, rewarding sufficient autonomy to enable them
compete and create a level playing field so that Indian private sector comes forward
for defence production through joint venture route. On
the issue of defence production policy, Dr. Raju indicated that the government
is examining all pros and cons before it sets a time frame for Defence Production
Policy in which the provisions would be incorporated to seek indulgence of Indian
private sector for defence exports with bear minimum government approvals. He
admitted that in the absence of defence production policy, exports of defence
articles, equipment, component and finished products are little cumbersome but
assured that something would be done in this front without giving a timeframe
for it. Mr.
N S Sisodia, Director General, Institute for Defence Studies and Analyses called
for a clear cut roadmap for corporatisation of ordnance factories as he held that
without it, Indian defence production will remain import oriented and that the
ordnance factories and it's workforce would not be geared to take on competition.
According
to him, workforce engaged in such institutions have sufficient production from
the government and that it has crippled them to embrass technologies and rendered
them non-competitive. Dr.
Vivek Lall, Vice President, & Country Head, Boeing Integrated Systems and
Chairman ASSOCHAM Defence Committee sought few modifications in existing Defence
Offset Policy to make defence procurement simpler and realistic. He
also demanded a rise in FDI's ceiling in defence sector as it would help India
absorb technologies and increase it's defence production to help India move towards
self-reliance if not self-sufficiency. Among others who spoke on the occasion comprised Mr. Kevin Thieneman, President Asia & Chairman, Caterpillar India and Vice Adml. (R) P C Bhasin, Co-Chairman ASSOCHAM Defence Committee. (editor@thesynergyonline.com) INDIAN
LSPs LAG BELOW END-USER EXPECTATIONS ON KEY PERFORMANCE CRITERIA Thesynergyonline Economic Bureau MUMBAI,
FEB 18 : The fifth annual 'Voice of the Customer' study from Frost & Sullivan (http://www.automotive.frost.com), Indian Logistics Industry Benchmarking Study and Analysis of Outsourcing Trends, finds that LSPs in India performed well above end-user expectations in some key performance criteria but lagged significantly on other important criteria. The study also established that transportation was the most outsourced function to logistics service providers, followed by freight forwarding. Almost all companies from across all industries largely outsourced transportation functions, while about 60 percent of companies from across all industries outsourced freight forwarding functions to LSPs. Interestingly, warehousing was outsourced by only about half of the companies.
The findings from the performance benchmarking of Indian LSPs, which is based on the ratings provided by leading end-users from 8 key industry sectors in the country revealed that LSPs performed well above user expectations on few key parameters such as fleet size, vehicle quality, number of warehouses, and warehouse size. With regard to aspects such as value addition, consignment tracking facility, and cost saving initiatives, LSP performance came close to end-user expectations. However, the Indian LSPs have lagged significantly behind end-user expectations on key performance criteria such as process improvement capabilities, material safety, and attitude of staff. Another interesting fact found by the study is the lower preference of end-users for long-term contracts with LSPs. Observations reveal that long-term contracts between LSPs and end-user companies were found to be low across all industries in the country. A majority of the companies either had no contracts with LSPs or had just one year contracts, indicating a tendency toward frequent change of LSPs. "Foremost among the challenges in logistics for a majority of companies across industry verticals are safety of goods during transit and warehousing, inefficiency of LSPs in adhering to timelines and the low skill levels of logistics personnel," says Srinath. "Inability of LSPs to keep pace with evolving volumes of end users and the lack of multimodal transpiration capabilities are other impediments. Further, the risk of information leak is a cause for angst among end-users." Moreover, a significant share of companies across industries could not gain notable (5 percent or more) improvement in their logistics efficiency despite using 3PL providers. About two-thirds of automotive industry was in this category, while about 55 percent of companies from auto components and pharma industries also reported to be in this category. End-user opinions revealed that major opportunities for third party logistics (3PL) service providers in India exist in developing technology solutions and infrastructure (logistic parks), as well as providing multimodal transportation. "LSPs should strive to improve their performance on criteria where they currently lag below end-user expectations, apart from adopting advance methods and technologies in supply chain and use them to offer better services to end-users, which is likely to reduce the challenges and concerns of end-users," observes Srinath Indian Logistics Industry Benchmarking Study and Analysis of Outsourcing Trends is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: Strategic Analysis of Cement Transportation Market in India, Strategic Assessment of Containerization Trends in India, and Strategic Analysis of Liquid and Gaseous Cargo Transportation Market in India. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. (editor@thesynergyonline.com) INFLATION BREACHES 8.5 % ESTIMATE ; LIKELY TO HEAD TOWARDS DOUBLE- DIGIT Thesynergyonline
Economic Bureau NEW
DELHI, FEB 17 : GDP FORECAST FOR Q3 FY10 REVISED UPWARDS TO 7.3% ; D & B Thesynergyonline
Economic Bureau NEW
DELHI, FEB 16 : The
WPI inflation, which turned positive during Sepember '09, gathered pace to accelerate
to 8.56 perccent during the month of January '10. The improvement in the domestic
activity as witnessed in the various macro economic indicators is likely to fuel
inflationary pressures in the economy. D&B expects the WPI inflation to be
around 8.9 percent-9.1 percent during February '10. The policy announcement of the 75 basis points hike in CRR over two tranches indicates that containing inflationary expectations has become paramount on the RBI's policy agenda. D&B expects a hike in policy interest rates in Apr-10, given that the sharp rise in prices of food articles and some metals raise concerns of second round impact of inflation in the form of higher wage costs and input costs. D&B
expects 15-91 day T-Bill yield to average at around 3.7 percent-3.9 percent and
10-year G-sec yield to average at around 7.6 percent-7.8 percent during February
'10. The foreign capital inflows coupled with dollar's weakness against major global currencies have led the rupee to appreciate in the near term which could have an impact on the export competitiveness. While rupee is expected to appreciate in the medium term, it will marginally depreciate from the level reached during Jan 10 and average at around 46.20-46.40 per US$ during February 10 mainly due to some foreign fund outflows.
The robust increase of 16.8 percent in the industrial production is a pleasant surprise. Strong and broad based recovery in the industrial activity might offset some of the negative impact of the expected lower agriculture sector growth and support the overall GDP in second half of FY10. The
stimulus provided by the Government in the form of duty cuts, tax benefits and
increased government spending has been instrumental in supporting the economic
activity in the current fiscal so far. "We
have revised our GDP forecast for Q3 FY10 to 7.3 percent, from the earlier rate
of 6.8 percent, given the buoyancy witnessed in industrial activity in this quarter.
A whole host of macro-economic data released recently points towards improving
economic activity; however, a sustained recovery in domestic demand is warranted
for continuance of this performance, more so in the event of a gradual unwinding
of the stimulus provided by the government." stated Ms. Yashika Singh, Head,
Economic Analysis, Dun & Bradstreet India. Ms.
Singh further added, "Rapidly surging inflation has emerged as a key concern
over the past few months and poses a significant risk to a stronger and quicker
recovery process. Policy decisions both on the fiscal and monetary front, which
are likely to be calibrated for balancing the trade-off between inflation and
growth, would play a crucial role in shaping the future growth prospects."
(editor@thesynergyonline.com) RE-DRAFT
BROADCASTING SERVICES REGULATION BILL , SAYS ASSOCHAM Thesynergyonline Economic Bureau NEW
DELHI, FEB 16 : In
a note submitted to the I&B Ministry today, the Chamber said, "need of
the hour is an "Independent Regulator" providing binding guidelines
whereby the broadcaster is restrained from leading to any disaster through media
such as 26/11 coverage on Mumbai attack where each broadcaster was trying to outperform
the other for sensational breaking news clearly not respecting the self-regulation".
The
Chamber holds that setting up of a regulator through an act of Parliament has
no bearing on the independence and autonomy of the said regulator. India has various
instances where different regulator for different industries have been set up
by various legislations passed by the Parliament. The said regulators have continued
to be independent and autonomous without having their strings attached to the
government. News
Broadcasters Association's (NBA) "News Broadcasting Standards (Disputes Redressal)
Authority" formed on August 22 ,2008 with the objective of enforcing NBA's
code of ethics and broadcasting standards began operation from October 2 , 2008.
As per the self-regulation mechanism if any broadcaster, television journalist or news agency is found guilty of showing an appropriate content the authority can warn, admonish censure, express disapproval against or impose a fine of Rs.1 lakh upon the broadcaster, television journalist or news agency. The
Authority can even recommend to the concerned authority for suspension, revocation
of license, accreditation of such broadcaster, television journalist or news agency.
The
members of the NBA Authority are appointed by the NBA itself. The appointment
provides that the Authority shall consist of a Chairperson being an eminent jurist
and eight other members nominated by the Board of NBA by a majority decision.
The
Authority commenced its functions with the editor-members of the Authority including
mediapersons. The selection of the members of the Authority is not independent
and is controlled by the NBA itself. Even
the recommendation of the Authority for revocation of the license of the Broadcaster
to the Concerned Authority is only suggestive and not final. The concerned Authority
may refuse to accept the said recommendation. Such powers exercises by the self-governing
Authority is helpless in maintaining Media discipline. The
United Kingdom has enacted an 'Independent Authority - Ofcom' to ensure media
and broadcast control over the Broadcaster. The Authority is responsible for licensing
all the UK commercial Television and Radio and contains the Code that defines
various acts of violation of Broadcasting Guidelines and also adjudicate any act
of violation by the Broadcaster. The
Chamber holds content regulations is significant and although more relevant in
the context of the emerging technologies like the Internet and the World Wide
Web as well as Internet 2.0. The Chamber suggests to examine the parameters and
significance of broadcasting in the context of Internet and Web 2.0 in order to
enable any relevant parameters for content regulation. The proposed amendments and the provisions of law also do not take into consideration various aspects pertaining to copyright and protection of intellectual property rights as also digital rights in the context of the digital environment. Recently,
amended Copyright Act also needs to be examined and taken into consideration in
order to protect and preserve the intellectual property rights as digital rights
of various stakeholders in the broadcasting environment in the context of the
digital space. All
kinds of rights need appropriate definition in the context of broadcasting. The
said definition, when specified through the means of legislation, tends to give
far more sanctity to the otherwise ambiguous and amorphous space of what constitutes
a satellite rights, digital rights, mobile rights and other applicable rights.
(editor@thesynergyonline.com) TRUST
IN BANKS AT A HIGH OF 82% , DROP IN TRUST LEVELS IN MEDIA, NGOs Thesynergyonline
Economic Bureau NEW
DELHI, FEB 15 : Trust in institutions in Asia Pacific is still high compared to that in the West. India is most trusting of business, government is the least trusted, although trust in government as well as CEOs held steady over the past year. But trust in NGOs is trending down in India, mostly among younger informed publics. Trust in media is also declining in contrast to past years where trust in both media and NGOs was high. This year's study shows a sharp drop over the past two years in trust in TV news from 61 percent to 36 per%, business magazines from 72 percent to 47 percent, newspapers from 61 percent to 40 percent and friends and peers online from 50 percent to 40 percent. Trust in NGOs decreased among ages 25-34 to 38 percent and increased among ages 35-64 to 55 percent. Trust in banks is unharmed - it is at a high of 82 percent in India - although nearly 8 in 10 believe governments will have a lot or some influence over banks and financial institutions in the future. Technology is the most trusted sector in India at 88 percent, followed by banks, automotive (79 percent), pharmaceuticals (75 percent), healthcare (73 percent), entertainment (70 percent) and media at a relatively low 58 percent.
India at 78 percent, Mexico at 63 percent and the UAE at 52 percent are the most trusting of India-headquartered companies, with Spain (26 percent), Germany (22 percent) and Poland (14 percent) the least trusting. The
2010 Edelman Trust Barometer survey sampled informed publics in two age groups
(25-34 and 35-64) in 22 countries. All informed publics met the following criteria
- college-educated; household income in the top quartile for their age in their
country; read or watch business/news media at least several times a week; follow
public policy issues in the "We are seeing a vastly different set of factors driving reputation than we did 10 years ago," said Richard Edelman, President and CEO, Edelman. "Trust
is now an essential line of business to be developed and delivered. CEOs who embrace
this new line of business called trust have seen their credibility rise. Stakeholders
are also beyond placing blame. In Asia Pacific, the findings indicate changing expectations of business and industry post the financial crisis. Most informed publics expect business and financial companies to return to old habits (91 percent in Indonesia and 82 percent in India) when the crisis ends. Most also expect government to influence financial institutions in the future - 68 percent of those interviewed globally, 78 percent in Asiapac and 77 percent in India believe government will have more influence over banks and financial institutions post the crisis. Said Alan VanderMolen, President, Edelman Asia-Pacific, "What's clear to me is that overall we are seeing a levelling out of trust in institutions - that no one institution enjoys unlimited trust or suffers too big a trust deficit. Therefore, there is a big need to pursue strategies of collaboration in order to achieve business and societal goals." One of the strong findings of the survey is about how corporate reputation is based on transparency and honest business practices as much as quality of products and services, and on how employees are treated. People are also more likely to trust a company that partners with an NGO to battle global issues. Sixty-one per cent of those surveyed in India believe all stakeholders are equally important to a CEO's business decisions, as against 53 percent in Asia Pacific. Robert Holdheim, Managing Director, Edelman India, said: "The rise of 'intangible' factors, such as transparency as primary trust criteria, signals a major shift. The steady drop of financial performance as a trust factor confirms the shift from a one-way, shareholder-oriented world to one in which companies must target a broader spectrum of stakeholders with targeted, differentiated communications." Across digital sources, online search engines command the most trust in India at 56 percent, followed by free content sources at 41 percent. Social networking sites come third with 27 percent and blogs a poor fourth at 16 percent. (editor@thesynergyonline.com) ASSOCHAM SEEKS WEIGHTED DEDENDENCE OF 150% ON EXPLORATION EXPENSES Thesynergyonline Economic Bureau NEW
DELHI, FEB 15 : This,
according to ASSOCHAM, would lead oil exploration companies to adopt a more aggressive
approach for making more investment in areas even where probability of striking
oil reserves is much lower than the other areas. In
it's representation address to Finance Minister, ASSOCHAM president Dr. Swati
Piramal pointed out that the trend of the last few years since New Exploration
and Licensing Policy (NELP) was introduced has proved this point as oil exploration
companies have only focused to make investments in blocks where the probability
of striking oil reserves is reasonably higher. The
weighted deduction of 150 percent of actual drilling and exploration expenses
will provide a cushion to these companies to take care of their sunken investment
in the areas where their efforts are unsuccessful. The
Chamber has sought a few amendments in Section 42 of Income Tax Act for realization
of deductions for hydrocarbon sector. It has pointed out that Section 42(1)(a)
provides for deduction of "expenditure by way of infructuous or abortive
exploration expenses in respect of any area surrendered prior to beginning of
commercial production" in computing the profits and gains of any business
consisting of prospecting for or extraction or production of mineral oils. It
is suggested to delete the word "surrender" from section 42(1)(a), since
it is not always possible to "surrender" an area in view of possible
further evaluation work. Currently,
there is no provision in the section to allow for deduction of expenses incurred
in acquisition of interest in a hydrocarbon block, whether in India or overseas.
In view of the opening up of the sector, and in order to attract more E&P
companies, such payment should be made deductible. It is proposed that a new para
(d) may be added to section 42 to cover deduction of such expenses. Section
42(2) provides for taxing assignment income in the hands of the assignor, arising
out of assigning his interest in any block. However, a corresponding provision
to allow for deduction of assignment expenses from the income of the assessee
has not been provided. This is anomalous and should be rectified. The
Chamber is of the view that government has recognized the need and accordingly
provided fiscal incentives for carrying out oil exploration activities, some additional
fiscal incentives need to be provided to further strengthen the hands of companies
engaged in the hydrocarbon sector to encourage them to continue their aggressive
pursuit in this financially challenging and high risk sector. In
this perspective it has to be recognized that any further incentive granted to
the oil exploration companies would in fact lead to their making higher investments
in exploration and drilling activities, especially in riskier blocks where the
probability of discovering oil reserves is unknown or low. This would be a win-win
situation for the Government since it will not only lead to a better exploitation
of the vast unexplored potential of our exploratory basins; but will also provide
additional revenues to the Government in the form of share of profits from the
oil reserves discovered in these blocks. Under the provisions of the section 42, all expenditure incurred on drilling and exploration activities including capital expenditure is allowed as a deduction to the assessee beginning with the year in which commercial production commences. Any
expenditure by way of infructuous or abortive exploration expenses in respect
of any area surrendered prior to the beginning of commercial production is also
allowed as a deduction to the assessee. The fact that capital expenditure is also
otherwise allowed as a deduction beginning with the year of commercial production
this provision only amounts to an accelerated deduction of the expenditure incurred
and does not amount to any additional deduction or incentive being granted to
the assessee.
(editor@thesynergyonline.com)
AGRI
GROWTH EVEN IN `10-11 UNLIKELY TO IMPROVE : SEN Thesynergyonline
Economic Bureau NEW
DELHI, FEB 09 : Inaugurating
ASSOCHAM organized Green Revolution II Summit here today, Prof. Sen said, "kharif
has been badly damaged because of poor monsoon and hurt agriculture production
substantially in 2009-10. The rabi which was expected to compensate for lost kharif
production in ongoing fiscal is also in for problems because of rise in temperature,
which might kill it's foreseen higher yield prospects". On
BT technology, the Planning Commission Member categorically stated that it's applications
on non-food items such as BT cotton has been excellent. However, it's application
on food items be subjected to wider consultation as it is not a matter of science
but a subject to people's confidence and accordingly government should take a
decision on it's applications on Indian soil, added Prof. Sen. Prof.
Sen endorsed observations of Prof. M S Swaminathan who in his keynote speech during
the ASSOCHAM organized Summit squarely blamed executors of government policies
on agriculture front due to which, Indian agriculture has come to this stage today.
Prof.
Swaminathan predicted that India is heading for draught until drastic steps are
taken to hold back majority of Indian population adhere on to agriculture by giving
them remunerative prices, good seeds, better infrastructure and know-how with
technologies. According
to Prof. Swaminathan, agriculture growth will not remain negative in current fiscal
but it's plight will be as much miserable as that of current fiscal even in next
fiscal. Prof.
Sen, however, said that there could be shortfall in the agriculture growth even
in next fiscal but the government will be able to maintain the projected growth
rate of over 4% for agriculture sector by the time 11th five year plan period
gets over. He
said that in the 12th five year plan period, the government is determined to release
a grant of Rs.6000 crore to 600 districts across the country so that farmers are
taught application of technology to improve their agriculture yield. On
the pricing front, Prof. Sen was hopeful that the prices of essential commodities
would gradually come down as these are driven by multiple factors. He did not
favor imports to subside price rise as globally prices of commodities including
grains and cereals are north worthy side and recommended increase in domestic
produce. Dr.
William S Niebur, Vice President, Crop Genetics R&D, DuPont said that with
adoption of modern technologies, India can increase it's yield of agriculture
produce and feed it's population at reasonably lower prices. Soil fertility in
India has come down and not many praiseworthy steps were taken after first Green
revolution to increase the fertility, he pointed out. Therefore,
India needs to forge alliances for increased fertility of it's land to provide
it's farmers necessary skills to increase their food grain production and thereby
ensure food security for India, felt Dr. Swati Piramal, President ASSOCHAM while
delivering her welcome address. Among
others who spoke on the occasion included Dr. Punjab Singh, former DG, ICAR Mr.
Pradeep Wig, Chairman, Kwality Group and Mr. D S Rawat, ASSOCHAM Secretary General.
(editor@thesynergyonline.com)
INDIA
ADOPTS DECENT WORK COUNTRY PROGRAMME Thesynergyonline Economic Bureau NEW
DELHI, FEB 09 : The DWCP for India has been formulated after a process of consultations with the tripartite partners on priority areas for ILO action and focuses on three priorities with social dialogue and strengthening of partners, informal economy and gender equality as the cross -cutting themes: -
Opportunities enhanced for productive work for women and men, particularly for
youth and vulnerable groups, especially through skills Speaking on the occasion, the ILO Director, Ms. Leyla Tegmo Reddy said that DWCP will strengthen our partnership and impact peoples lives, especially those who are most disadvantaged*. DWCP-India, covers a 5-Year period and is aligned to India's 11th 5-Year Plan, is time-bound, results-based and focussed. The joint programme of action places ILO's knowledge and instruments at the service of the constituents, policy-makers and other stakeholders in order to advance India's vision of faster and inclusive growth and the DW agenda. The DW agenda is built around priorities relevant to the needs of individual countries, jointly identified by the tripartite constituents government, employers and workers organizations and the ILO and is translated into operational Decent Work Country Programmes (DWCPs) at country levels. (editor@thesynergyonline.com)
Thesynergyonline Economic Bureau NEW
DELHI, FEB 08 : "Union
Commerce Ministry has already recommended removal of Anti Dumping duty on cold
rolled stainless steel not manufactured in India long back, but Ministry of Finance
has yet to issue the necessary Notification. The Automotive exhaust system manufacturers
and exporters in the country are suffering due to higher duty on imports of raw
materials. The certain grades and quality of stainless steel needed for critical
components are not manufactured in India" said Mr Yogesh Bhatia, Chairman,
International Tube Association (ITA) , India chapter, a global body of Tube and
Pipe Manufacturers. 'FULL CAPITAL ACCOUNT CONVERTIBILITY CAN LEAD TO MASSIVE CAPITAL FLIGHTS FROM INDIA' Thesynergyonline
Economic Bureau NEW
DELHI, FEB 06 : The
Paper named Capital Account Convertibility: Is India Ready further cautions that
not only are there dangerous consequences associated with capital outflow, excessive
capital inflow can cause currency appreciation and worsening of the Balance of
Trade. Furthermore,
there are overseas credit risks and fears of speculation. In addition, it is observed
that FCAC sometime increases short term Foreign Institutional Investment more
than long term Foreign Direct Investment, thus leading to volatility in the system,
says ASSOCHAM-PWC Paper. Releasing
its findings, ASSOCHAM pointed out that the rising prices and the appreciation
of the rupee are adversely affecting India's exports and the Balance of Trade.
Moreover, the fiscal deficit has been highly underestimated by ignoring the deficits
of individual states and through issuance of oil bonds to the public sector oil
companies, making severe losses due to the heavy subsidies on oil. Therefore
India would need to work on sustaining its economic fundamentals over a period
of time with a strong banking system over a period of time before going ahead
to implement full capital account convertibility, added the Chamber . According
to the Paper, market risks such as interest rate and foreign exchange risks become
more complex as financial institutions and corporate gain access to new securities
and markets, and foreign participation changes the dynamics of domestic markets.
For instance, changes in foreign interest rates will affect banks' interest sensitive
assets and liabilities. Foreign participation can also be a channel through which
volatility can spill-over from foreign to domestic markets. Secondly,
credit risk will include new dimensions with cross-border transactions. For instance,
transfer risk will arise when the currency of obligation becomes unavailable to
borrowers. Settlement risk (or Herstatt risk) is typical in foreign exchange operations
because several hours can elapse between payments in different currencies due
to time zone differences. Cross-border transactions also introduce domestic market
participants to country risk, the risk associated with the economic, social, and
political environment of the borrower's country, including sovereign risk. With
full capital account convertibility (FCAC) liquidity risk will include the risk
from positions in foreign currency denominated assets and liabilities. Potentially
large and uneven flows of funds, in different currencies, will expose the banks
to greater fluctuations in their liquidity position and complicate their asset-liability
management as banks can find it difficult to fund an increase in assets or accommodate
decreases in liabilities at a reasonable price and in a timely fashion. In addition, risk in derivatives transactions becomes more important with capital account convertibility as such instruments are the main tool for hedging risks. Risks in derivatives transactions include both market and credit risks. For instance, OTC derivatives transactions include counterparty credit risk. In
particular, counterparties that have liability positions in OTC derivatives may
not be able to meet their obligations, and collateral may not be sufficient to
cover that risk. Collecting and analyzing information on all these risks will
become more challenging with FCAC because the number of foreign counterparts will
increase and their nature change. It also cautions that Operational risk may increase with FCAC. For instance, legal risk stemming from the difference between domestic and foreign legal rights and obligations and their enforcements becomes important with fuller capital account convertibility. For instance, differences in bankruptcy codes can complicate the assessment of recovery values. Similarly, differences in the legal treatment of secured transactions for repos can lead to unanticipated losses. (editor@thesynergyonline.com)
Thesynergyonline Economic Bureau
In
addition, the Chamber has also suggested that commercial banks be permitted to
raise long-term bonds from NRI's say for a period of 10 years to garner funds
for infrastructure sector. Besides,
it has also mooted a proposal to permit pension funds to invest upto 15 percent
of their funds in infrastructure projects as also suggested that refinancing of
existing rupee loans through ECB be permitted for such projects based on interest
cost advantage. The debt for various industrial projects in India is currently met by Indian banks. Steel industry projects are typically large and are highly capital intensive and therefore require huge investments. Such projects have economic life of around 30-40 years. Dr. Piramal pointed out that currently Indian banks are constrained by their own available funds being short term in nature and they usually lend for average period of around 4 to 5 years. This clearly means that project companies face huge debt servicing obligations in initial years of their operation. This
places them in financial hardship, particularly when business faces a normal cyclical
downturn. It is therefore necessary to permit corporate to access ECBs to re-finance
the loans from Indian banks so that the debt maturity profile matches with economic
life and the company has a sustainable debt level. Similarly,
at the time when the projects are in inception/execution stage, accessing ECB
is constrained due to inability of ECB lenders to assume project completion risk.
However, ECB lenders are comfortable to lend to operating companies which have
a proven track record of performance. Hence,
ECB lending meeting working capital requirement and refinancing of debt from Indian
lenders is to be permitted. Re-financing debt from Indian banks with ECBs will
facilitate freeing up the domestic banks' capability to lend to newer projects
thus aiding the economic growth. The Chamber has also emphasized that earlier policy of allowing Indian banks to guarantee ECBs (vide Master Circular No.07/2008-09 dated July 1, 2008) should be restored to enable corporates to access cheaper source of funds to effectively compete in the export markets. Thirdly, the Chamber has also suggested that commercial banks be allowed to raise long-term bonds from NRI's as they are well equipped with funds and wants longer investments avenues in developing economy like India to enable it garner funds for infrastructure sector. As regards to its demand for allowing pension funds to invest 15 per cent of their net worth for infrastructure sector, the Chamber has reiterated that infrastructure since is a low risk, low return but adequately secured sector and therefore pension funds should be encouraged to invest the suggested chunk of their networth in such projects. In
addition, the Chamber has also suggested that refinancing of existing rupee loans
through ECBs be permitted for such projects based on interest cost advantage.
"
It would be desirable to raise the Interest deduction limit of Rs.1.5 lakhs in
the computation of income under section 24 of the Income Tax Act, to Rs.3 lakhs. "
Also, under 80IB section, one of the prescribed conditions is that the built-up
area of the shop and other commercial establishments included in the housing projects
shall not exceed 5% of the aggregate built-up area of the housing project or 2000
sq. ft., whichever is less. In large housing projects, 2000 sq. ft. may not be
adequate, particularly in view of high density as may arise from restriction of
maximum built up area of 1000/1500 sq. ft. per residential unit. The absolute
limit of 2000 sq. ft. may be deleted. "
The government should provide tax incentives for smaller size of units and accordingly
the applicability of section 80IB should be extended upto 31st March 2010. Therefore,
income tax exemption will be applicable for projects sanctioned upto 31st March
2009. "
That apart, Stamp duty needs to be brought down further to 4-5% and made uniformly
applicable across all states. Also, if stamp duty has already been paid on one
transaction, there should be a mechanism to provide concession or a system of
credit for any subsequent transactions. This would avoid the resultant cascading
effect of Stamp Duty, thereby reducing the cost of a property. The concept of
credit for taxes paid on subsequent transactions already exists in other statutes
such as CENVAT, VAT, MAT, etc. "
Service tax in relation to construction of residential complexes having more than
12 houses has been imposed. Services in relation to construction of residential
bungalows, not forming part of a 'residential complex', are excluded. Taxing the
construction of such residential complex will now entail a higher cost of construction.
The discriminatory tax treatment is not understandable. Also, what is the sanctity
of the threshold of 12 dwelling units in a residential complex? Service Tax should
not be imposed in the case of construction industry as the said industry is already
paying a number of taxes on different inputs purchased for constructing the houses
in addition to taxes such as Works Contract Tax (WCT). Also, Service Tax be not
leviable on rental income of commercial premises which has a crippling effect
on occupiers of retail premises. " The definition of "infrastructure" earlier used by the government and all financial institutions allowed for funding of townships and residential / commercial buildings. This seems to have got de-linked and branded as Real Estate during the time when land and property prices were spiraling. A
change in the definition of Real Estate sector resulted in these activities being
categorized as "outside of infrastructure sector". The immediate implication
of this was that banks could not extend loans to real estate activities on the
same norms as they can to infrastructure companies, even though building new townships
are similar activities as building infrastructure facilities. In the ongoing sluggish
environment of real estate market, it may be desirable to reinstate the definition
of Real Estate business as contained in FEMA. "
Presently section 23 of the Income Tax Act provides a standard deduction of 30%
from the rental income which should needs to be substantially increased to around
50% of the total income. " As per Section 54, capital gain arising from transfer of any capital asset is exempt from tax in cases where the sale proceeds are invested in acquiring one residential house. We feels that exemption should be available where the capital gains are re-invested even in more than one house. (editor@thesynergyonline.com)
Thesynergyonline Economic Bureau NEW
DELHI, FEB 04 :
From all ominous indications such inefficiency may also afflict the proposed regulator whose establishment is in any case not prudent, given that a regulator (PNGRB) already exists in the oil and gas sector and that too without notification. "The government should focus on empowering existing regulatory institutions, rather than merely creating new ones, to ensure that a transparent and credible regulatory environment emerges in such key sectors as oil and gas", asserts Mr Mehta. . (editor@thesynergyonline.com) SUBDUED GROWTH IN CORE INFRASTRUCTURE TO SHOOT WPI INFLATION TO DOUBLE- DIGITS Thesynergyonline
Economic Bureau NEW
DELHI, FEB 02 :
"There
is a widespread gap between the overall industrial production and the output of
core infrastructure industries; which is expanding at a threatening pace. With
aggregate demand going strong, there would be substantial pressure on prices due
to supply side constraints" says the ASSOCHAM Study. A
stark difference of 5.6 percentage points between the growth rates of IIP and
six core infrastructure industries for August - November period owes to the subdued
performance of the latter. Although the growth of six core infrastructure sector
improved to 6 per cent for December 2009, the better performance was primarily
due to the base effect. Ignoring
the demand-supply balance, the dismal growth in production of key industrial inputs
like finished steel, cement, crude oil and coal has raised concerns over the price
stability of their end products. Assessing
the demand side factors the Study added, Indian cement prices are expected to
firm up as demand from state projects and housing sector activity picks up significantly
while steel prices would rise on account of increased demand from the auto and
construction sector. Domestic
price for coal would go up as increasingly growing demand for power generation
is expected to create an acute shortage of coal in the country whereas crude oil
prices are likely to harden with demand for fuel going strong. The
Study also cautioned that there are underlying threats in meeting our domestic
demand by heavily relying on international markets. The global resurgence in commodity
prices like crude oil, coal, steel and cement is bound to shoot inflation going
forward. As we import more than 70 per cent of our coking coal and crude oil demand,
a turnaround in prices of these commodities does not augurs well for the Indian
economy. The
pickup in inflation for these industrial inputs would take the already year high
level of Wholesale Price Index based inflation to double digits. The
growth rates for domestic production of coal, cement and crude oil witnessed an
average decline of 5.1 percentage points, 3 percentage points and 0.7 percentage
points respectively between the August - November and April - July period of FY
2009-10 whereas the growth rates of finished steel and electricity generation
increased marginally by 1.5 percentage points and 0.6 percentage points respectively.
Despite
the rapid strides of improvement in overall industrial production since August
2009, the above trend for the core infrastructure sector confirms supply side
pressure due to the robust build up on the demand side. At
a time when inflation rate is climbing up every month mainly due to spiraling
food prices, the firming up of inflation in key industrial inputs would play havoc
for a broad based economic recovery, concluded the Study. PEs
IN INDIAN RLYS UNLIKELY OVER US$ 84.8 MILLION AS AGAINST TARGETED US$ 13 BILLION
Thesynergyonline Economic Bureau NEW
DELHI, FEB 02 : This, according to a Report brought out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on PEs Investments Towards IR, goes to prove that railways has yet to roll out investment friendly models to support it's diversification drive on lines anticipated by PEs
and also ensure reasonable return on capital deployed. Since 11th Plan began in
2007-08 and close to 3 years have already elapsed, the railways received limited
PEs participation until now as only 2 deals so far announced for it. One that
of Patil Infrastructure - a company focusing on railway track engineering, received
US$ 56.7 million funding from one equity partner. In the second one, Harish Chandra , a railway line manufacture, attracted investment worth US$ 28.1 million from Axis Pvt. equity, adds the Chamber . According
to official estimates, both public and private investment planned for modification,
expansion drive of railways including laying of part of freight corridors during
the 11th five year plan should be around US$ 65.5 billion. Of which close to 19
percent is expected to be generated through private participation. The
report also highlights that over the past few years, the growth of rail network
has not kept pace with the increasing traffic requirements. For instance, between
financial year 2001 and 2008, the goods traffic increased at a CAGR of 8.3 percent
while the rail network increased only at a CAGR of 0.08 percent. Releasing findings of the Chamber's report, its president Dr. Swati Piramal said that significant private sector participation would be required in the sector. Apart
from projects to be developed on PPP basis, large projects in Indian railways
such as dedicated freight corridor and the outlays of railways tracks to improve
connectivity will offer opportunities for the private sector on an equipment,
procurement and construction (EPC) basis. This
is expected to increase the scope of PEs investments in this segment provided
a transparent investment charter is laid out for private investments in timely
execution of railway projects such as dedicated freight corridors and it's diversification
and modernization drive. However,
in the short to medium term, the PE opportunities in railways will be restricted
to the EPC players as it is unlikely that any meaningful number of railways PPP
projects will be available in the market in near future. Further,
numerous issues such as capacity constraints, increasing freight rates and a lack
of modern freight terminals continued to impact the rail sector. These infrastructure
bottlenecks coupled with poor customer orientation resulted in transit delays
of both passengers and goods, resulting in an increased customer preference towards
roads. Rail
projects in India have generally been a part of the public sector domain. However,
based on success of PPP in other infrastructure sectors such as highways, Indian
railway has begun to take a small measures to explore the PPP route which can
be profitable provided reforms and transparency is strictly observed in awarding
rail projects for private equities including private investments, said Dr. Piramal.
With a total network 63,332 km spread across 8000 stations, the Indian railways forms the second-largest rail network in the world under a single management. Indian railways involved in a number of activities including freight and passenger operations, infrastructure development, manufacturing and other ancillary businesses such as catering and tourism. The
freight segment accounts for about 70 percent of the overall revenues. Indian
railways carries approx. 40 percent of the freight traffic and 20 percent of the
passenger traffic of the country.
(editor@thesynergyonline.com)
'EXTEND SEZ TAX INCENTIVES IN NEW DIRECT TAX CODE Thesynergyonline Economic Bureau NEW
DELHI, JAN 25 : The
Chamber in a note to the government has underlined the need for the tax benefits
in the new Direct Tax Code regime due to the apprehension that these may be discontinued.
In
a representation sent to the Finance Minister, Mr. Pranab Mukherjee by ASSOCHAM,
it is argued that the draft tax code which will lead to overhaul of the Income-Tax
Act has created uncertainty for both present and potential investors, who do not
know whether their investments would get the returns that they have calculated
based on the existing tax laws. This
is because the code does not mention anything about units inside SEZs, but has
a separate chapter on proposed guidelines that specify how developers of the tax
free industrial enclaves will be treated in the new tax regime. If
the provisions of the code get translated into the new Income-Tax Act, it
is clear that SEZ units set up after the new law is implemented will not enjoy
any direct exemption. Such provisions will be a major roadblock in the development
and growth of SEZs in India, pointed out the Chamber. “Schemes
like SEZs are special schemes with defined objectives of enhancing India’s
share in global trade, attracting foreign and domestic investment, creating world
class business and social infrastructure, generating employment and last but not
the least, providing a hassle free business environment to entrepreneurs”,
holds the Chamber. According
to it, the phenomenal performance of the SEZs during last three years is an evidence
to support that given the laissez faire regime, the business will deliver and
it is therefore requested that tax incentives should continue for SEZs and their
developers after the new DTC is rolled out for execution. Some of the tax incentives which should go on for SEZs and their developers and promoters include 100% income-tax reduction under Section 80-IAB for any consecutive 10 years out of first 15 years from the date of notification of SEZ. The government is likely to make a tinkering in this against the desire of those that have plans for SEZs. Secondly,
SEZ units should continue to get Income-tax exemption under Section 10AA of the
Act for a complete tax holiday to SEZ units for a period of 5 years.
This should be applicable from the year in which the unit begins it’s manufacture
or production. Thirdly,
2 per cent Minimum Alternate Tax (MAT) being proposed by the government on SEZs
in the new DTC is uncalled for and is against the spirit and interest of SEZ Act.
This is expected to discourage capital formation in the SEZ and in the economy
as a whole. The ASSOCHAM has reiterated that levy of MAT would be against the very spirit of SEZ scheme which seeks to exempt the export income of the units. Since SEZ units are not eligible to income-tax on export profits, there is no question of levying MAT. (editor@thesynergyonline.com) GOVT
PURCHASES LIKELY TO TOUCH RS10 LAKH CRORE BY 2012 Thesynergyonline
Economic Bureau NEW
DELHI, JAN 23 : The
Chamber’s optimism in this regard is based on assumption that the government
purchases would multiply as it aims at recording a growth rate of about 9% by
the time the 11th five year plan period terminates, which would seek it to considerably
increase it’s spending on government purchases. However,
resources for it would have to be generated through public investments as well
as higher budgetary allocations to different Ministries, especially so in case
of Defence, Railways, Ministry of Shipping & Transport, Power, Telecommunication
and Petroleum & Natural Gas. According
to the Chamber estimates, the way the government has declared it’s intentions
to harness sources of non-conventional energy like solar, wind, tidal, biomass
etc. would compel it to go in for higher purchases both from domestic industry
as well as overseas companies in the field. The
government intends to make capacity addition of 22,000 mw of energy through harnessing
of these sources to the optimal capacity for which huge purchases would have to
be made not only from domestic industries but overseas countries such as Germany,
France, Sweden and Norway. The
Chamber expects that equipment and components and even project imports for the
sector of non-conventional areas would require government spending to an extent
of Rs.15,000 crore in next 2-3 years since these are highly expensive and made
of the applications of latest technologies. Releasing
the Chamber estimates on government procurements, it’s president Dr. Swati
Piramal said that defence and railways which are the largest procurer of not only
project imports but various equipment component and services are jointly expected
to release government orders to an extent of Rs.90,000 crore in next 2 years.
Currently,
railways annual procurements stand close to Rs.35,000 crore per annum and in case
of defence, it’s procurement estimated Rs.55,000 crore, added Dr. Piramal.
Power
and oil and gas have huge capacity expansion plans which would require government
and it’s public sector entities to make huge purchases estimates for which
could exceed close to Rs.1,20,000 crore in next 2-3 years. It may be clarified
here that estimates of government purchases are brought forward also as in one
fiscal year sometimes the government does not spend the projected amount in one
fiscal because of variety of reasons. The
Chamber feels that in the past 2-3 years not much of government procurement happened
because Indian economy remained under attack of global meltdown as it had to abandoned
most of it’s capacity expansion in power, oil & gas, ports and roads.
But
henceforth, especially from year 2009-10, the economy has started picking up and
recovery started returning. It is therefore hoped that most of the public
sector undertakings would aggressively work for capacity expansion and since lot
of focus is being given on upgrdation of infrastructure, the ASSOCHAM expects
over Rs.40,000 crore of public investments in infrastructure. One can imagine
the amount of investment that would go in rebuilding India’s infrastructure
through government procurements. The
Chamber is also of the view that government agencies should adopt innovative procurement
method such as “Green Purchasing” and e-procurement, in tune with modern
procurement methods adopted in developed western countries. The purchase
officers in western countries are called chartered professionals and in our country
also, these professional should be offered chartership by the concerned government
authorities. (editor@thesynergyonline.com)
.
Thesynergyonline
Economic Bureau NEW
DELHI, JAN 22 : "The
supply chains of the electronics industry have become more complicated, and, thus,
the importance of original design manufacturer (ODM) businesses has risen,"
said Masatsune Yamaji, senior research analyst at Gartner. "As such, the
top 10 branded OEM/ODM companies accounted for a third of all semiconductor demand
in 2009, as they did in 2008." HP
remained the leading OEM worldwide for semiconductor consumption in 2009. It succeeded
in gaining market share in all the PC market segments such as desktop PCs, mobile
PCs and mini-notebook PCs. HP
also maintained a strong position in printer, server and storage markets, though
the total market size of servers and storage shrunk sharply in 2009. Samsung accounted
for the second-largest demand for semiconductors in 2009 and is the most successful
vertically integrated manufacturer, while Nokia ranked third, after losing business
worldwide, especially in the U.S. Apple
and Acer were the only electronic equipment manufacturers among the top 10 companies
to increase their semiconductor demand in 2009. Apple grew against the background
of the demand trend shifting from hardware-oriented to service-oriented markets
to become one of the most successful market players and one of the most attractive
customers for chip vendors in PC, mobile handset and consumer markets, in terms
of growth potential. Acer
succeeded not just in increasing its shipments of mini-notebook PCs, but also
in gaining market share in the desktop PC and mobile PC markets. Gartner analysts
said consumer demand is shifting from high performance to portability and affordability,
and this trend accelerated Acer's growth in 2009. As a result, Acer increased
its semiconductor demand and was ranked ninth in 2009, up from 11th in 2008. "Overall,
results are better than could have been predicted a year ago," said Mr. Yamaji.
"Electronic equipment manufacturers made huge efforts to adjust their production
and inventory in the first half of 2009 in order to deal with the economic downturn
that set in at the end of 2008. Semiconductor demand has been gradually recovering
since the second half of 2009, when the inventory adjustment was almost completed,
but the pace of recovery differs by market segment." Gartner's
preliminary results reveal that semiconductor demand for PCs has shown a firm
recovery, as mini-notebook PCs have sold well not just in emerging countries,
but also in developed countries. DRAM pricing also stabilized in the latter half
of 2009, and the new operating system (OS), Windows 7, also drove market demand.
However,
semiconductor demand for mobile handsets saw large declines, especially for enhanced
phones, while the demand for smartphones grew. The semiconductor demand for smartphones,
which had accounted for 19.8 percent of the demand for total mobile handsets in
2008, grew to 28.6 percent in 2009. "Though the importance of ODM business has been increasing for the past 10 years, the leading brand companies are still the most important customers for semiconductor device vendors," Mr. Yamaji said. "Semiconductor vendors should pay much more attention to the leading electronic equipment manufacturers and their customers, who are catching up with the market trends and who will survive in the future." (editor@thesynergyonline.com) . CALL FOR IMMEDIATE NOTIFICATION FOR WITHDRAWING ANTI-DUTY ON IMPORT OF HIGH GRADE SIAINLESS STEEL
NEW
DELHI, JAN 22 : The
various end users and importer industries associations including have shot
letters to the Prime Minister, Union Finance and Commerce Ministers and
Secretary Revenue , Ministry of Finance for immediate issuing the notification
of Final DGAD Findings No. 14/06/2008-DGAD dated 24 November 2009 in the Anti-dumping
Investigation concerning imports of Cold Rolled Flat Products of Stainless Steel
(CRSS) from China PR, Japan, Korea, European Union, South Africa, Taiwan (Chinese
Taipei), Thailand and USA . “Ministry of Commerce had initiated Anti Dumping Investigations on import of stainless steel at behest of Single manufacturer Jindal Stainless steel in April 2009 and imposed Anti dumping duty and all category of stainless steel including bnot manufactured in India. Directorate General of Anti-Dumping and Allied Duties (DGAD) after conducting a thorough investigation, on 24 November 2009 concluded that Cold Rolled Stainless Steel not produced in India should be excluded from the scope of product under consideration. This
decision of the DGAD is in line with the comprehensive submissions made by the
end user industries including our association which comprises of thousands of
SME exporters employing lakhs of workmen and getting forex in thousands of crores
every year.” Said Mr V.P.Ramachandran, Secretary, Process, Plant and Machinery
Association of India (PPMAI) . “In
our written submissions we had highlighted that the domestic industry does not
have the capacity to manufacture certain types of Cold Rolled Stainless Steel
. Despite recommendations by DGAD, Ministry of Finance has still not issued the
much awaited Customs notification withdrawing duty from several grades of
stainless steel not manufactured in India. “More than 5000 stainless steel utensil and Cutlery manufacturing and exporting units employing about three lakh workers across the country are facing closure as they have been adversary hit by the recession and the proposed Anti Dumping duty hike on stainless steel , the basic raw material will work as the last nail in the coffin of ailing industry. Unnecessary delay in issuing the notification by Ministry of Finance has further hurt the industry” said Mr Paresh Mehta President, All India Stainless Steel Industries Association (AISSIA). (editor@thesynergyonline.com) . CONSUMER ORGANISATIONS SHOULD TAKE FORWARD POSITIVE MESSAGES FROM GST Thesynergyonline Economic Bureau NEW
DELHI, JAN 22 : Consumer organisations should be empowered to take forward these positive messages,” said Pradeep S. Mehta, Secretary General of CUTS International while submitting a memorandum to the Finance Minister of India in the run-up to the 2010-11 Union Budget. This memorandum has looked at various priority areas and commitments made by the UPA government to take the country forward to a sustained high growth path along with a gradual reduction in carbon intensity. Given the crucial role that small and medium enterprises play in sustaining India ’s growth, it recommended that “there should be a special purpose vehicle through public-private partnership mode to enable micro, small and medium enterprises to access easy finance, particularly for acquiring low-carbon technologies.”
It supported the government’s efforts on disinvestment and said that such an initiative should be a part of an overarching National Competition Policy. It called upon the government to initiate effective labour reforms and related legislation so as to generate a better political buy-in for disinvestment. CUTS, a non-governmental organisation working on consumer and other public interest issues in India and other countries, is celebrating 25 years of its establishment. It is at the forefront of the consumer movement in India and at the global level. CUTS is conducting evidence-based policy advocacy on regulatory reforms, international trade and development and on governance issues.(editor@thesynergyonline.com) .
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