Thesynergyonline Economic Bureau

NEW DELHI, AUG 31 :
RELEASING a study done by CII & Yes Bank on “The Indian Processed Food Industry: A Diagnostic Review of Opportunities and Challenges” Mr Subodh Kant Sahai, Minister for Food Processing Industries, said that “The food processing sector has the potential to become the outsourcing hub for the world and India will be feeding the world in years to come. He also stressed that the Ministry of Food processing is highly committed to the sector and has announced various incentives and schemes to support new ventures. He stated that the sector is muscular dwarf, which the capacity and capability to do for rural India what IT has done for the urban India.

The knowledge report analyses the strengths and weaknesses of the processed food value chain, highlighting the blooming opportunities that are unfolding across various sub-segments in the processed food industry, and identifies the investment space that India offers to entrepreneurs looking to leverage on the food processing opportunity. The report was released on the sidelines of the 2nd Processed Food Advantage India 2010.

Stressing on the bridging the gaps in the Food Processing Sector Mr. SK Bansal, CEO, Mother Dairy F&V P. Ltd, stated that “India has an estimated Us $ 5 billion per annum as the supply capacity for the value added products and processed food to harness the potential the sector has to gear up to align with the real time global demand pull, which is increasing international taste for Indian foods, India’s enormous capability to match the demand and acceptance of Indian cuisine all over the World”.

Other speakers at the Meet were Mr. Piruz Khambatta, Chairman, Processed Food Advantage India 2010, and CMD Rasna International ltd, Mr. Salil Singhal, Chairman and MD PI Industries Ltd, Mr. Murat Bayizit, MD & CEO, Kaledonya Dis Ticaret Ltd, and Mr Herman C Claassens, Chairman, Auatralian Culinary Foods P. Ltd.

Mr. Khambatta in his presentation appreciated government’s early steps which have facilitated the growth of the Food Processing industry, ensuring the greater profitability down the entire food value chain. He also said that this is the right time for Indian producers to venture international.

The objective of the Processed Foods Outsourcing buyers - sellers meet, organized by CII was to explore and harness the untapped potential of the processed food segment in the overseas market. The two-day international Summit assumes greater significance due to the fact that for the first time over 50 global buyers had come from all across the World to explore India as an expanding global trade in outsourcing the processed food.

The Meet was attended by more than 50 International Companies engaged in food processing, retailing etc and around 80 Indian Companies. Over 2500 Business to Business Meetings were held and a number of business deals and Joint Ventures were proposed during the meetings. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 31 :
TARUN Bajaj, Jt. Secretary, Pension Funds in Ministry of Finance on Tuesday disclosed that his ministry is working out to devise a mechanism to appoint aggregators in India to bring in vast section of rural poor in fold of new pension scheme.

Delivering his valedictory address at ASSOCHAM organized ‘6th National Conference on Pension, Retirement, Planning and Employee Benefits’ here today, Mr. Bajaj said that proposed mechanism will be put in place between 3-6 months period and the job of aggregators will be to connect vast section of farming community and other vulnerable sections of society for pension benefits.

The Finance Ministry will pick up and choose the aggregators from different communities who represent them and can avail them benefits of National Pension Scheme (NPS), said Mr. Bajaj further indicating that the government will pay them a commission so that the contribution of farming and other vulnerable sections of society can keep coming to pension fund managers.

Mr Bajaj also said that with the help of aggregators taxi drivers, farming communities, small-time traders, kiosk wallahs and a hell lot of other sections could reap benefits of NPS with a set of their contribution.
The joint secretary, however, added that the government will take another couple of years to unfold a pension scheme for absolutely vulnerable section of society as at present there is no mechanism being seen and visualized for them.
In the concluding session other speakers comprised: Mr. H. Sadak, CEO, LIC Pension Fund Ltd. And Secretary General, ASSOCHAM, Mr. D.S. Rawat. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 31 :
PENSION Fund Regulatory Development Authority (PFRDA) will shortly link ‘National Pension Scheme (NPS)’, with employment guarantee programme like ‘MNREGA (Mahatama Gandhi National Rural Employment Gurantee Act)’ to ensure that each of its beneficiary becomes entitled to pension facilites under NPS, says PFRDA, Executive Director, Mr. P.K. Tiwari.

Delivering his keynote address at ASSOCHAM organized “6th National Conference on Pension, Retirement Planning and Employee Benefits” here today, Mr. Tiwari disclosed that Secretaries level discussions have commenced between Ministries of Finance and Rural Development in this regard because MNREGA falls under the direct jurisdiction of the latter.

The discussions have started on the subject following detailed proposal submitted to Ministry of Rural Development by PFRDA, said Mr. Tiwari adding that after secretary level talks becomes conclusive, relevant Ministers’ involvement would be sought and a cabinet note made for approval of the government. The process will take a little more time before a policy decision is taken in this regard, hinted Mr Tiwari.

According to him each beneficiary of MNREGA will have to open an account in banks and deposit minimum of Rs. 1000-Rs. 1200 every year, clearly telling the banks concerned that this money should be transferred to National Security Depository Limited (NSDL) which will issue a number to beneficiary of MNREGA scheme so that he becomes entitled for pension benefits after the age of 60 or so.

The government will contribute equal amount in such accounts so that pension benefits are ensured for aam aadmi, said Mr.Tiwari, hinting further that current outgo of central government on MNREGA which works out to be Rs. 70,000 crores p.a. even may be hiked to ensure that NPS covers everybody in lower strata of society.

On the issue of parking surplus funds of pension fund managers in infrastructure and equities, Mr. Tiwari clarified that the regulator will not advice the pension fund managers to place a part of their funds in speculative channels to ensure that public money does not go waste.

In his inaugural speech Minister of State for Finance, Mr. Namo Narain Meena said that under NPS, pension is a shared responsibility of employer and employee to contribute equally. Presently, more than 10 lakh government employees are covered under NPS and this scheme has been adopted by state governments and few PSUs as well.

PFRDA has been taking several initiatives for expanding the reach of NPS among al sections of society and have launched customized models of NPS platform to suit needs of different sections of society. Recently, NPS-Lite, a low cost version of NPS with optimized features for economically disadvantaged persons has also been launched.

The Government of India, with a view to promote retirement planning among al sections not statutorily covered by any other provident or pension schemes, have announced that an incentive of Rs. 1000/- per NPS account opened during fiscal 2009-10 and subsequent three years will be given under Swavalamban scheme. Swavalamban benefits will also be available to all subscribers from unorganized sector who have contributed between Rs. 1000-Rs. 12,000/- in a year to their NPS accounts.

Other speakers on the occasion were: Mr. Vinay Rai, Sr. Member, ASSOCHAM Managing Committee and President, Rai Foundation; Mr. Ben Facer, ASEAN and South Asia Business Leader, Retirement, Risk & Finance consulting, MERCER; Mr. D.S. Rawat, Secretary General, ASSOCHAM. (editor@thesynergyonline.com)
 

Thesynergyonline Economic Bureau

NEW DELHI, AUG 26 :
THE Associated Chambers of Commerce and Industry of India (ASSOCHAM) has opposed forcible acquisition of farmers' land for both public good as well as setting up of manufacturing facilities for India Inc. without adequately compensating farming community and even making them a stakeholder in such ventures.

In a statement, ASSOCHAM president, Dr. Swati Piramal said that in the pending Land Acquisition Amendment Bill, a rider ought to be attached in one of its clauses so that agricultural land is not at all acquired by government and industry forcibly to prevent farming community, NGOs and other vested interests for causing social unrest and hurting public sentiments.

The ASSOCHAM chief further suggested that as far as possible in public and private projects for which land is being acquired from farmers, they should be persuaded to be stakeholders in such ventures to give them sufficient security for their future generation, besides providing for compensation and rehabilitation package which is worked out as per prevailing market prices.
The suggested move will stop those that's land is being acquired from agitation which ultimately gets polarized by vested interests and puts heavy pressure on law & order machinery.

The ASSOCHAM has demanded that proposed 'Land Acquisition Amendment Bill' should be introduced in the parliament as early as possible and its smooth sailing be ensured in a manner so that future's land acquisition are concluded in a logical manner without their possibilities slipping into controversies.
In the meanwhile, the chamber has quoted its recent study findings of which reveal that delays in land acquisition for industrial and pubic projects could endanger investments worth USD 100 billion in near future.

The study has suggested a 5 point strategy for adoption of solving land acquisition related problems among which the major proposal includes that besides, handsome compensation package, the land oustees should have a participation in the form of equity in public and private projects to give them a sense of belonging to it.

According to ASSOCHAM 22 major steel projects in the country worth USD 80 billion are being held up due to procedural delays in opting various clearances in land acquisition mainly due to public protests. This has endangered 150 million tonne capacity target of steel industry by 2015 which includes projects belonging to ArcelorMittal, Essar Steel, Jindal Steel and Power Limited and Posco.
The ASSOCHAM has pointed out that close to 20 projects of India Inc. amounting Rs. 2.45 trillion remains on paper in the form of MOUs in last couple of years and this speaks about need for earlier facilitation of land acquisition bill in the parliament so that land is acquired in a cordial manner and investments including FDIs are absorbed in India as intended as per government's FDI policy. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 24 :
IN keeping with continued efforts to keep the contribution of former president of SOS-India Tara Ali Baig SOS Children’s Villages of India organised the 21st edition of Tara Ali Baig Memorial Lecture at India Islamic Cultural Centre. Dr. Kiran Bedi was present on the occasion as chief guest while Dr K Sekar, Professor, Department of Psychiatric Social Work, NIMHANS, Bangalore was the keynote speaker.

The occasion marks the birth anniversary of Mrs Tara Ali Baig, a multifaceted personality with diverse interest and deeply committed to social issues; who is remembered for the pivotal role she played at the policy and implementation level of the country’s social agenda. The seminar aimed at highlighting the vitality of psychosocial competence among children in India.
 
Dr. Kiran Bedi appealed to the responsible citizens of Inndia to enrich psychological and social proficiency among the children. Further highlighting the imperativeness of child’s overall development. She said, “Family should play the role of a primary caregiver for wellbeing and guidance of the child. The Government must adopt socially responsible policies, keeping children specifically in mind. Individuals, families, communities and institutions are all duty bound to promote the resources leading to psychosocial development of a child. While Dr K Sekar emphasised on the fact that parents or guardians should take all necessary steps at different levels of a child’s growing period to ensure that the child is both socially and psychological mature enough to face the outside world.
 
Remembering a lady of benevolence - Tara Ali Baig, Mr. S. Sandilya, president SOS Children’s Villages of India said, “Late Mrs Tara Ali Baig, served as the president of SOS Children’s Villages of India for over two decades and played a pivotal role in the development and strengthening of the SOS work with children in India. A lady with a vision, drive and compassion, she always led from the front. As we gather here today to commemorate and pay homage to the memory of our President and an avid champion for the cause of needy children we realize that her vision and her work continue to have a very critical relevance in the present scenario facing disadvantaged children in our country.”
 
Childhood is the foundation of the nation’s future and there has to be an overall development of children in order to make this country a better place to live in. On the occasion, children from SOS Children’s Villages and other members of SOS family paid tribute to their Dadi, as Tara Ali Baig is fondly remembered by the children. (editor@thesynergyonline.com)

Thesynergyonline Econonomic Bureau

NEW DELHI, AUG 23 :
PRESIDENT , Associated Chambers of Commerce and Industry, Dr. Swati Piramal welcomed policy pronouncements of ‘Annual Foreign Trade Policy’ saying that most of these are industry and user-friendly but it would have been more appropriate if technological imports could have been incentivised to make Indian exports competitive.

In a statement Dr Piramal said extending duty entitlement passbook scheme and zero duty export promotion for capital goods are welcome measures as also giving an assurance that India would be able to achieve $200 billion export target in current fiscal is encouraging. The ASSOCHAM is slightly doubtful that with increasing global consolidation and exports showing slump, the target of $200 billion for current fiscal exports is still ambitious.

However, Dr Piramal added that though the government is committed to continue to providing sops for exporters in capital goods and textiles, schemes should have been announced to facilitate technological imports to increase competitiveness of domestic industry as also encouraged setting up of R & D especially by those who are licensed for setting up manufacturing facilities in India. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 19 :
THE Associated Chambers of Commerce and Industry of India (ASSOCHAM) has offered India Inc's contribution in terms of financial help to Pakistan to enable it overcome colossal damage caused by unprecedented devastating floods.

In a communication submitted to Pakistan High Commissioner as well as President, Federation of Pakistan Chambers of Commerce and Industry (PCCI) by ASSOCHAM President, Dr. Swati Piramal, the chamber has extended a helping hand of its 3,50,000 constituents to Pakistan as a gesture of goodwill at times of utter crisis.

"Please tell us if the Indian industry and India's business fraternity can be of any help in these hours of tribulation", adds the ASSOCHAM communication jointly addressed to Pakistan High Commissioner and Mr. Sultan Ahmad Chawla, president, PCCI.

We've been following up disturbing news reports doing rounds about the devastations caused by floods in large parts of Pakistan, leading to untold misery to its people, besides colossal loss of life, property and resources, said Dr. Piramal.

In these tragic conditions, apparently beyond human control, our hearts go out to the bereaved and suffering people. ASSOCHAM and its constituents associated with this chamber are particularly grieved and that is why large numbers of its constituents have evinced their desire to provide all sorts of assistance, said the ASSOCHAM Chief.(editor@thesynergyonline.com) 

Thesynergyonline Economic Bureau

NEW DELHI, AUG 18 :
ERNST & Young and ASSOCHAM have jointly sought support of State in terms of legislation in dealing with risks of corporate frauds, arguing that individual efforts will be inadequate to prove such frauds as `Criminal Offence’.

In a Paper jointly brought out by the two institutions on State of Corporate Fraud Control in India, it has been highlighted that individual efforts of members of corporate India to deal with risks of fraud require support of State in form of rule of Law – consisting of regulations, adequate institutions, knowledge and skills and efficient justice delivery mechanism.

Both Ernst & Young and the ASSOCHAM hold, “the role of State assumes still greater importance when the company is not the victim but is itself the fraud perpetrating entity.

According to the Paper, the regulatory framework needs to be evaluated on two grounds, i.e. the adequacy of laws and the enforcement climate.

E&Y-ASSOCHAM paper has further pointed out that over the years, India has adopted several laws, regulations and guidelines providing preventive and curative measures to address the burgeoning number of frauds in the country.  Several of these are however a fallout of incidents of fraud and financial crimes as well as regulatory developments in the US or European markets.

With the introduction of critical anti-fraud provision being adopted worldwide, via Clause 49 of Listing Agreement, India has made the essential start to create a regulatory framework pertaining to fraud risk management. However, on a macro platform, there are still areas that require significant improvement.

The paper highlights, “fraud as such as is not a criminal offence in India.  If any fraud is committed in a bilateral contractual situation or otherwise whether involving personal or public fund, also an act of cheating or if such an act involves impersonation, criminal breach of trust or criminal conspiracy, or forgery or falsification or destruction of documents for wrongful gain or embezzlement of funds, then and only then, such fraud can be an offence. Big scams that often taken place in the secondary capital market by way of `price rigging’ or `insider trading’ are not offences. 

These are `foul-play’ only.. if the regulator has any prima facie proof that the same act was done with an intention of wrongful gain to one or causing wrongful loss to another or both, it becomes an offence.”
It further says that banking and financial services sector continue to be the most attractive target of any corporate scam and hence the most frequent victim of fraud in India.  Banks and financial institutions suffer heavily in frauds committed by borrowers, employees and hackers.  Yet, financial fraud is not an offence.

The principal reason for any coherent policy on financial fraud that it has never been kept in view while defining offences of various kinds under the country’s criminal legal regime. The result is that a one-to-one offence of cheating or forgery is dealt with in the same manner as a case of large scale financial fraud that impacts the fate of millions.

The ASSOCHAM and E&Y has also pointed out that one of the welcome measures taken by the government has been to address the need for multi-dimensional and specialized professional investigate team that has been established is of Serious Fraud Investigation Office (SFIO), under the aegis of Ministry of Corporate Affairs. Like the Serious Fraud Office (SFO) in UK, the SFIO is a multidisciplinary organization with experts from the fields of finance, capital market, accountancy, forensic audit, taxation, law, information technology, company law, customs and investigation.

According to the SFIO, it has handled nearly 64 cases of fraud over the four year period since its commencement of operations. With an average investigation period of 6-12 months, it has completed its investigation and submitted its report to the MCA in 31 cases of which 29 have been taken to trial.  The outcome of these cases remains to be seen. However, as the SFIO team grows in number and experience over the coming years, it is hoped that it will play a larger role in improving fraud control environment in India. (editor@thesynergyonline.com) 

Thesynergyonline Economic Bureau

NEW DELHI, AUG 16 :
UDDEN withdrawal of the Technology Up-gradation Fund Scheme (TUFS) by Ministry of Textiles and instructions to banks not clear any further investments under this scheme has come as a shock to the entire textile industry and all further investments in the textile industry has come to a halt.

"Even the funds allocated in the budget 2010-11 have not been completely released to the industry and the industry has received funds only till December 2009", Mr Ashish Bagrodia, president , Northern India Textile Mills Association (NITMA)

The TUF scheme since its inception in 1999 has been one of the most successful schemes of the Government of India which has brought in an investment of Rs.2,07,350 crore in the Textile sector and has created huge employment for the unskilled and unemployed of our country through the entire textile value chain from Ginning to Garmenting. The Indian textile industry is the largest employer in the country after agriculture, he says.

These investments have also helped the Indian farmers with the local industry consuming 250 lakh bales of cotton out of the 295 lakh bales produced in the country during 2009-10 season who otherwise would have been at the mercy of the traders/exporters. The cotton consumption in India has increased from 160 lakh bales in 1999. Today, our country is the world's second largest producer of cotton with largest acreage in the world under cotton cultivation. It is expected to produce a record crop of 320-325 lakh bales in the coming season 2010-11, he adds.

If further investments in this sector remain suspended due to suspension of TUFS, the cotton farmers will have no other option but to remain at the mercy of the traders.

TUF Scheme should be immediately restored so that value addition in done within our country giving an opportunity to lakhs for employment. On one hand, the government is allocating thousands of crore to the NREGA scheme and on the other hand the same government is finding it difficult to allocate funds for this scheme where the industry itself can create huge employment and reduce the burden on the government, he said.

He added," With competing countries like China, Bangladesh and Pakistan facing problems due to labour issues, environmental concerns, etc. we have today an opportunity to become the Clothier to the world. We hope that this opportunity is not lost like we did in 2005 upon dismantling of quotas due to unfavourable government policies. I hope the government taking a holistic view, realises that this scheme has greatly helped the country's development as a whole providing inclusive employment and restores the TUF scheme at the earliest. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 14 :
THE Associated Chambers of Commerce and Industry of India (ASSOCHAM) has reiterated it’s demand for a higher FDI cap of 49 per cent in defence sector with necessary approvals from Department of Industrial Policy and Promotion (DIPP) from current level of 26 per cent to help India create a niche for original equipment manufacturers (OEM) as also provide increased employment opportunities in defence sector.

The suggested move will allow for a significant degree of control by the Indian government on FDI inflows in defence and encourage domestic industry to seek meaningful foreign tie-ups through which defence indigenization can grow to an intended level of 70 per cent.

The limited participation of FDIs in over last six decades of freedom denied India technology for making defence products as a result, defence indigenization remains at 30 per cent even now.

In a paper presented to Secretary, Defence Production on 'Amendments In Defence Procurement Policy 2008' the ASSOCHAM has argued that manufacturing of defence equipment in India is subject to a 26 per cent cap on FDIs.

The Chamber has held that argument for raising FDI stems from understanding that a 26 percent cap on FDI discourages original equipment manufacturers (OEMs) from bringing in proprietary technology. Fallout of low FDI cap is that this could possibly result in limiting the foreign capital inflows into sector and thereby increases the corresponding fund requirements of the Indian partners.

The argument against raising the FDI cap to more than 26% stems from the fear of Indian companies ceding control and thereby resulting in units that can be closed in situations of operational emergency and need by the armed forces rendering a disruption in supply chain.

Therefore, the defence sector needs to be opened up to an extent of 49 per cent to ensure that technology transfer happens and domestic companies at the same time have control over defence manufacturing.

The Chamber is concerned that even services in defence are subjected to a cap on foreign investment and therefore there is an urgent need to clarify government policy in this regard as this is a retrograde interpretation.

The Chamber has further pointed out that India’s massive defence budget has potential to make it a global manufacturing & services hub in Defence. India must seize this opportunity and put in place a policy regime that would facilitate investments (foreign and local), transfer of technology and creation of jobs in India.

The SEZ (Special Economic Zone) policy provides an ideal platform for this and allowing offset credit for FDI made for Aerospace, Defence and Security oriented manufacturing units located in Defence, Aerospace and High Tech Engineering SEZs would provide further impetus to both indigenization and promoting India as a global hub. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

Mr N R Narayana Murthy,Chairman and Chief Mentor,Infosys, presenting a memento to Mr Prithviraj Chavan,Minister of state for PMO, Personnel. Public Grievances and Pension, Parliamentary Affairs, Government of India standing along with Mr.Rajiv Vastupal, VP, AIMA.

NEW DELHI, AUG 11 :
THE 2-day AIMA National Conference on Public Governance; Keeping the Promises: How can Governance be More Effective began in the Capital today.

Mr Prithviraj Chavan, Minister of State for PMO, Personal, Public Grievances and Pension, Parliamentary Affairs, Government of India while delivering the inaugural address said, "The government of India has adopted a three- pronged governance strategy by focusing on social dimension for changing the face of rural India, enactment of transparency laws like RTI act and extensive focus on suggestions made by Administrative Reforms Commission. These measures have ushered in a new era of governance in the country."

Mr. Chavan further added, "For the endeavor of governance, the Government of India has prioritized actions like decentralization of power, effective people's participation, synergy amongst government's program, civil services reforms, transparency, access to justice system and harnessing the power of technology".

Dr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, stated that the three critical areas that the government needs to focus on is to do better in the area of agriculture by developing an industry interface, and fixing the logistical backlogs. The other segment that needs concerted actions for achieving double digit economic growth is matching the quality of infrastructure with the developed world. Thirdly the government should look at experimental ways of delivering health, education and skill set base for the people.

On the 12th National Five Year Plan, Dr Ahluwalia said that governance will be the key issue for the plan. The Planning commission will also be launching a website aiming at seeking suggestions from Indians for the plan. He said that the 12th plan will be creating a base for experiment aiming at value addition. Governance today is a management challenge, and there is a dire need to look at how things are done in a more transparent way. He also stressed need for larger participation from the private sectors in development projects which they can manage independently. This will also help the government to concentrate on more important and socially oriented development projects.

Mr NR Narayana Murthy, Chairman and Chief Mentor, Infosys Technologies while chairing the session, spoke about formulating a better model of public governance, as the development initiatives by the government has impacted the upper middle and the middle class.

Citing the state of administration's apathy, he said India has a population of 340 million living below the poverty line and the same time food grains worth feeding 140 million people are left to rot. Around 250 million people do not have access to clean water, while 650 million Indians are denied basic sanitation facilities.

Thus India needs to realize the national objective along with focusing on effective and speedy mission oriented processes.

Giving a direction on Governance in the Indian context, Mr. Murthy stressed that the administrators should reduce their ego and should do away with the colonial mindset. The sense of societal ownership is lacking, with a culture of talk and not execution. The society should be disciplines and errant person should be penalized. India also needs an active social dome with concerted focus on Unemployment pension scheme and social security scheme.

Mr KV Kamath, Chairman, ICICI Bank, said that the governance challenge faced by the country today is to make people ready for taking the opportunities that double digit growth will provide. Delivery mechanisms for health and education have to be explored for education, healthcare and financial services along with addressing the blockages in delivery process. For the several initiatives taken to reach out to the masses, communication technology has been playing a critical role.

Ms. Rekha Sethi, Director General, AIMA while welcoming the delegates stated that last year AIMA's National conference had highlighted the key governance issues in the country. Today on retrospection, we feel that progress made with respect to programs such as Unique Identification Number, Right to Information and Right to Education are worth noting and which has reaffirmed that with active public governance practices better development happens. (editor@thesynergyonline.com)

GET BEYOND RESERVAITONS TO PROVIDE EQUAL OPPORTUNITY TO ALL : KHURSHID

Thesynergyonline Economic Bureau

Mr Salman Khurshid, Minister Corporate Affairs, Govt of India with Ms Rekha Sethi, Director General, AIMA, Mr. Pratap Bhanu Mehta, president, Center for Policy Research and Mr Arun Shourie, former MP at AIMA Conference on Public Governance.

NEW DELGHI, AUG 11 :
INDIA faces a big problem of caste-based reservation system, and the challenge is to get beyond reservations with an all encompassing model which provides equal opportunity to every Indian, opined Mr. Salman Khurshid, Minister of Corporate Affairs, Government of India.

He was speaking at the AIMA's "National Conference on Public Governance: Keeping the Promises - How can governance be more effective". The two day conference concluded today with participation by over 300 delegates comprising of senior government officials, NGOs', management executives from both public and private sector and business consultants.

Mr Khurshid further added that the political and governance system in India is explicitly based on caste, however the diversity that India enjoys, leads us to a potential of totality for everyone. The major problem that India is struck in is the box of available development models. The nation has to analyze newer available models of development, or create a new model of development to overcome the governance challenges.

Mr R C Misra, Secretary, Department of Administrative Reforms & Public Grievances giving a valedictory speech highlighted that expectations of good governance at a national level is synonymous to expectations of good health at the individual level. The factors that contribute to good governance are transparency, adhering to ethos, a strong civil society, and citizens behaving under the rule of law. The ideals for setting the agenda for governance should be set out as the fundamental rights of the citizens. Human Values cannot be compartmentalized, as governance is not just about structures and improved management practices only.

Mr Arun Shourie, former Member of Parliament stated that the focus of today should not be on corporate governance, but attending to the problems of general governance. The cancer of corruption that is rotting the society should be dealt with, and the punishment for corrupt officials must accelerate with the level of the office held. Such steps will help in formulating and strengthening the governance model in India.

Mr Pratap Bhanu Mehta, President, Centre for Policy Research stated that a model has to be formulated for accelerating the pace of development, and giving way to free and frank opinions. The unprecedented inflation today has wiped out the benefits that the poor use to have. Secessionism, violence and naxalism are at an all time high. The society has to come up to the level to preempt the crisis before it starts to rot the society with a right governance model.

Justice Santosh Hegde, Lok Ayukta, Karnataka said that the only good in the Indian society today is the tolerance level. But one should think for how long would this tolerance prevail? The success of a person is being gauged on the quantum of wealth possessed by them, however the corruption levels of these people should be taken note of.

During the last day's sessions, Ms. Kiran Bedi, Former Director General, Bureau of Police Research & Development, shared her thoughts on eliminating corruption. She said, "Where the leadership is competent, honesty will prevail. If people feel connected to those taking and implementing decisions, there will be integrity in the system. Courage is very vital. We must encourage whistleblowers and protect them too. It is also important to have such people on the job who are compassionate and caring. They must be trained to feel this way. Then only they can understand the sentiments of others. Then only we can hope for things to get better."

Mr D R Kaarthikeyan, president, Foundation for Good Governance and former Director, Central Bureau of Investigation reiterated that corruption affects all sections of society. "Things are such that even if some people are not corrupt, the general public view is that everyone in the system is corrupt. There are delays in decision making because of this along with falsehood and lack of accountability and responsibility. People from disadvantageous groups are the worst sufferers as they don't have the strength or the resources to protest. You cannot have a private heaven in a public hell," said Mr. Kaarthikeyan. In order to bring in change, he suggested, the civil society's participation must be encouraged and strengthened.

Mr N Vittal, former Chief Vigilance Commissioner, explained, "We must be clear about the fact that there is a difference between governance and government. Governance is too important to be left to the government. Since corruption is all pervasive in the system in which we work, it is unfortunate that our governance is designed in a way that it promotes, nourishes to promote corruption. We need to weed it out completely, but if we can't do that, then what we ought to do is change the system." He observed that the system is set in a way that it dilutes accountability. Only adverse remarks are communicated, not the good ones. (editor@thesynergyonline.com)

STEEL MINISTRY TO INTERVENE IN POSCO ENVIRONMENT CLEARANCE CASE : VIRBHADRA

Thesyneargyonline Economic Bureau

NEW DELHI, AUG 11 :
UNION Minister for Steel, Mr Virbhadra Singh on Wednesday asked private sector steel makers to team up with state- owned steel companies such as SAIL and RINL to acquire coal blocks overseas in a spirit of joint venture in a bid to meet up their raw material requirement since domestic availability of coal is on the verge of depletion.

Inaugurating ASSOCHAM organized 4th India Steel Summit here today, Mr. Singh also said that the steel ministry would take up the cause of POSCO with Environment and Forest Ministry so that its construction work in Orissa is facilitated from being obstructed.

The Minister said that government owned steel companies viz., SAIL, RNIL etc. have already taken initiatives to acquire coal blocks abroad but in vain. If private sector steel makers team up with them and pool their resources together, coal acreages overseas can be acquired to help steel plants have their supplies of coal in place.

The abundant availability of low grade iron ore can be adequately harnessed for making quality steel provided public & private sector steel makers come together and buy foreign technologies to set up palletizing and beneficiary steel plants, emphasized the minister.

Dwelling upon the controversial issue of environment clearances relating to POSCO project, Mr. Singh categorically stated that the matter though related between POSCO and State of Orissa, the union steel ministry will intervene in it and facilitate smoother construction of steel plant in Orissa.

"Finished steel consumption in the country remained stagnant at around 52 million tones in 2007-08 and 2008-09. However, the same increased sharply to 56.48 million tones in 2009-10, recording a growth of 7.89 per cent on the previous year. The uptrend continued into the first quarter of this fiscal. Steel consumption has grown by 12.2 per cent in April-June 2010-11, year on year. At one level, from the point of view of the steel producers, this a very encouraging situation as unlike in many other countries wihere slowdown in demand has constrained production, our steel makers are far better placed, with their future plans bearing significantly lower market risk", said Mr. Singh.

"I would like to emphasize that a very well co-ordinated and coherent approach is needed with the involvement of both the government and the industry to sort out all the problems which are coming in way of steel industry's capacity expansion dreams".

Speaking on the occasion MoS for Steel, Mr. A. Sai Prathap said that new steel projects of Brown and Green field should have action plan for maximum production out of minimum land. In other words, since land is scarce and there is lot of pressure, the usage of land for maximizing steel production needs thorough discussion, added the minister.

In her welcome remarks, Ms. Simnu Jindal, Chairperson, ASSOCHAM National Committee on Iron and Steel and MD, Jindal Saw said that prevailing Indian economy has to foster growth in infrastructure. It is estimated that by 2020, India would need a steel production base of 200 million tones as against existing base of 65 million tonnes. In order to scale up the growing demand of steel, it needed to strengthen cargo movement by 2020, increasing it by two and a half folds compared to its current capacity, she added.

Simmilar sentiments were aired by Chairman, SAIL Mr. C.S. Verma, Secretary, Ministry of Steel, Mr. Atul Chaturvedi, CMD, RINL, Mr. P.K. Bishnoi, Mr. Sajjan Jindal, immediate past President, ASSOCHAM and ED, IBM India, Mr. Sivaramakrishnan Narayanan. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

MUMBAI, AUG 10 :
USINESS confidence levels in India seem to be leveling off at the peak according to the latest NCAER (National Council of Applied Economic Research) - MasterCard Worldwide Index of Business Confidence. The current Business Confidence Index (BCI) at 155.9 points is marginally lower than 156.8 points reported in the April 2010 survey. However, BCI stands 2.1 points higher as compared to 153.8 points in January 2010.

According to the report, the marginal decline reflects continued optimism which is tempered by concerns. The continued optimism is mainly attributed to the sustained robust industrial activity and expectations of continued global economic recovery while the concerns include persistence of high inflation rates.

Now in its 73rd round, the NCAER Index of Business Confidence is based on a survey which measures business confidence on four indicators. They include 'Overall economic conditions six months from now', 'Financial position of firms six months from now', 'Investment climate' and 'Level of capacity utilisation'. All four indicators carry equal weight. The index is released every quarter.

The survey which looks at trends within firm-specific business outlook indicators also includes a Political Confidence Index (PCI) and studies the global economic crisis and its impact on various industries. The latest survey was conducted in June 2010 and received 533 responses. Data was collected through personal interviews and questionnaires sent to a diverse range of businesses across various regions in India. The Index and its accompanying report do not represent MasterCard financial performance. (editor@thesynergyonline.com)

An analysis of the four components reflected a drop in BCI in the present round as compared to April 2010. Among the four components of BCI, capacity utilisation is the only component that has improved in June 2010 over the previous survey while the remaining three showed a decline. 'Capacity utilization' rose to 97.7 per cent compared to 95.8 per cent in the previous survey.

'Overall economic conditions' as an indicator declined to 79.9 per cent as compared to 80.1 per cent in the previous round while 'financial position of the firm' declined to 73.2 per cent from 75.1 per cent. The steepest fall is in the indicator for 'investment climate' in which case 58 per cent of the respondent firms found it to be favourable. In April, the percentage was about 60.0, which again was lower than the measure of the indicator in January 2010. The decline, therefore, may be related to general uncertainty especially when inflation rate is high.

The sectoral analysis of BCI showed a mixed picture. Three out of five major sectors have recorded lower BCI in the present survey. Intermediates sector has recorded relatively significant decline compared to the rest, followed by consumer non- durables sector and capital goods sector. The consumer durables sector and the services sector show greater optimism. The BCI in the services sector has increased by almost 7.4 per cent from 151.8 points in April 2010 to 163.1 points in June 2010.

At the regional level, BCI in the South has shown improved optimism. The BCI in South has increased from 139.5 points in previous quarter to 155.8 points in June 2010. All the four components of BCI in South region are showing gain in their levels. Larger proportion of respondents in South gave positive rating for 'investment climate' and 'overall economic conditions' in the present survey as compared to April 2010. The other three regions have reported a decline in BCI. The decline was steeper in the West followed by North. Business confidence in the East remains at nearly the same level as in April 2010.

BCI for firms across size categories showed a decline in business sentiments in small and medium sized firms while large firms reveal an increase in the BCI as compared to over the previous quarter. The business confidence in firms with annual turnover of Rs 100 to Rs 500 crore has increased by just one per cent while those having turnover of more than Rs 500 crore the BCI increased by 3 per cent. The small sized firms i.e. those with annual turnover up to Rs 10 crore have shown decline in BCI in the current round. Medium sized firms i.e. with annual turnover of Rs 10-100 crore show marginal decline from their BCI in the previous round

Disaggregation of the BCI into various ownership groups of firms indicates that public sector firms witnessed a sizeable increase of over 11 per cent in BCI compared to the previous round. The BCI in public sector firms stood at 185.1 in June 2010 as compared to 166.2 in April 2010. However, the BCI growth was marginal among public limited and partnership firms (0.8 percent and 0.3 percent respectively), while a considerable slippage was seen within the private sector (almost 3.7 per cent).

The survey has a special section dealing with expectations on inflation, interest rates and exchange rate. The high annual rate of inflation, between 9-10 per cent in the case of wholesale price index (WPI) between January 2010 and June 2010 has been a negative factor in the macroeconomic environment for the business sector as well as the consumers.

The respondents to the survey expect on the average, annual inflation rate of 7.12 percent during April-September 2010. This is clearly lower than what has been the pattern during the period April-June 2010. The expectations with respect to consumer price index (CPI) for industrial workers, however, remain on the current pattern, even exceeding the present rates. The average annual rate of inflation for CPI is 14.46 per cent for the first half of 2010-11.

In line with the expectations on consumer price inflation, respondents have also indicated expectation of higher interest rates in 2010-11 for investment funds and working capital. There is an increase in the proportion of respondents who expect interest rates to be higher than what they are currently paying, by October 2010 and March 2011. For working capital, proportion of respondents who expect to pay 12 - 16 per cent interest by October 2010, is significantly higher than now. The proportion continues to remain at the higher level in March 2011 also.

As far as the exchange rates are concerned, respondents expect the balance of various pressures to result in some depreciation of the nominal value of the rupee. Larger proportion of respondents expects the rupee to rise more than Rs. 49 per USD 1 by March 2011. The expected changes are gradual during the course of the year.

The Political Confidence Index (PCI) ratings reflect a significant revival after a continuous decline in the last three quarters. The PCI has now risen to 129 points from 105.7 points in April 2010. The reversal of the pattern in PCI may reflect the sustained improvement in industrial output and the economy in general in spite of the persistence of high inflation rates.

The current PCI ratings also witnessed a significant upside amongst all the five sub-sectors of the non-agricultural sector of the economy considered in the survey. PCI has declined only in the case of consumer non-durables impacted by high rate of inflation and slow recovery in exports. The pick up in PCI in most of the sub-sectors of the economy in the present survey points to regaining of confidence in the political commitment to economic policies.

PCI ratings have witnessed a strong positive relationship with size and ownership. The larger firms are optimistic on the ability of political leadership to push economic reforms forward and manage overall economic growth. The smaller firms appear to be more optimistic than the larger firms when it comes to managing inflation.

The significant improvement in PCI at the aggregate level is not uniform across regions. PCI has increased over the survey in April 2010 in the West and the North. But it has declined in the East and the South. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 10 :
COMMODITIES Research Unit (CRU) and ASSOCHAM have jointly predicted that iron ore exports from India would decrease modestly till 2013 and accelerate thereafter since such exports have already reached their peak in 2009-10 in which iron ore exports were estimated at 115 million tones. However, over 3/4th of the iron ore exports in last fiscal were consigned towards China.

Releasing findings of the CRU and ASSOCHAM on 'Indian Steel Industry - An Overview', ASSOCHAM President, Dr. Swati Piramal said that iron ore exports have reached their peak in 2009 and will struggle to achieve any growth going forward.

This is mostly on account of rising domestic demand and will be further accentuated if government imposes severe restrictions on iron ore exports such as the ones demanded by Indian steel industry. India's current export tax stands at 5 per cent for fines and 15 per cent for lumps. Even elsewhere in the world, mineral companies are finding it harder to export due to their increasing domestic demands and so will remain the case with India.

Even China has a high export tax rate for its natural resources such as coke, coking coal and there have been talks in Brazil as well to impose higher export taxes, especially on iron ore.

In India, recently Karnataka has banned all iron ore exports from the province due to compulsions for meeting domestic requirements and it is in view of this background that CRU and ASSOCHAM expect that iron ore exports from India would continue to decrease in another three years and accelerate thereafter because by than most of capacities increase in steel sector will have been achieved. This will have obvious implications of reducing India's share in the sea-borne market.

In 2009-10, total iron ore production in India stood at 205 million tones, out of which fines were 130 million tones, lumps at 59 million tones and rest as pellets. The iron ore production is through a large number (around 300 leases) of smaller mines (less than 2mtpa capacity) whereas bigger ones are only few, run by public sectors, large private sectors and government undertakings.

The paper on Outlook for Steel Consuming Sectors in India, however, points out that it is increasingly focusing on investments in infrastructure. Besides, there is growth participation from private sector to tap growing consumer demand from auto and housing sectors. Since, all these sectors account for a major share in steel consumption in the country, steel demand in India is all set to witness a significant growth.

The paper projects that infrastructure is expected to grow at a CAGR (Compounded Annual Growth Rate) in the next five year plan 2012-17, government has doubled allocations to infrastructure at $1025 trillion which will have major consumption from steel sector.

In addition to auto sector, the real estate sector will also consume significant quantities of steel, especially in the next 3-4 years since there is a shortage of 25 million housing units and another 80-90 million housing units will have to be constructed mainly, catering to low and middle income groups. Over the period till 2013, it is expected that the real estate sector may attract a total of USD 12.1 billion and is expected to grow at CAGR of 11 per cent. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUGUST 09 :
THE Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the government and RBI (Reserve Bank of India) to subject investments of Foreign Institutional Investors (FIIs) into Indian capital markets to moderate capital control regime so that such investments are brought to productive & constructive usage.

In a statement, the Chamber spokesman said that in emerging market economies like India, capital inflows can result in currency appreciation and thereby weaken it's exports and external engagements.
Therefore, the time has come when India needs to increase Capital Gains Tax on securities traded into Indian capital markets on FIIs investments from a stipulated level of 20 per cent to 30 per cent in case such investments refuse to stay in destined country within a period of six months.

It will ensure a stable micro management of Indian capital markets in globalizing environment and take the intended purpose to logical conclusion. The RBI although has been sterilizing capital inflows to keep exchange rates at competitive levels even though in recent months, capital flow situation actually got reversed which according to ASSOCHAM is a temporary phenomena. Sterilizing capital flows by RBI (Reserve Bank of India) augments the money supply and reduces the flexibility in calibrating monetary policy.

Foreign inflows in Indian equities are gradually becoming a cause of concern for policy makers including RBI as it is felt that without a moderate deterrent in such inflows, Indian capital markets would over-stretch besides inflate rupee appreciation and create asset bubble.
This will not only weaken domestic export competitiveness but further fuel inflation and it is in view of this that the Chamber has recommended increase of 10 per cent capital gains tax on FIIs investments to prevent it from flying away before a period of six months, said ASSOCHAM Secretary General, Mr. D.S. Rawat.

The chamber is aware that the government and RBI are of the view that FIIs inflows to an extent of $ 150 billion can tolerably be absorbed in Indian economy but it is also of the view that FIIs investments ought to be retained for at least 6 months so that country in which such investments are committed can take some advantages and reinvest such funds for face-lift of its economy.

Stability in FIIs investments and in their retention will be beneficiary for both investors and companies concerned but also increase India's exports competitiveness, help it moderate inflation. Export competitiveness and curbing inflation pose the serious threat for policy makers in current economic scenario as well as emerging global conditions in which supplies remain under severe constraints.

The recommended measures will bring some sort of discipline in capital inflows without creating adverse impact added ASSOCHAM Secretary General. Further pointing out that there is a scope for further liberalization of FDI norms which would be more beneficial and a long-lasting step for capital inflows rather than increasing India's dependence on hot money. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 07 :
HE Associated Chambers of Commerce and Industry (ASSOCHAM) has projected Wholesale Price Inflation (WPI) going up at 15 per cent and Consumer Price Index (CPI) exceeding 18 per cent in next two months mainly due to hike in prices of petroleum products, rains disrupting supplies of food and primary articles and continued rise in consumption patterns. The WPI and CPI inflation is currently estimated at 12 and 14 per cent respectively.

In its assessment of rising inflation, the ASSOCHAM has emphasized that festival season would shortly approach and drive demand of almost every item of primary articles and essential commodities and substantially fuel inflation rates.

Releasing its assessment, ASSOCHAM Secretary General, Mr. D.S. Rawat said that projected rate of inflation would start moderating from October 2010 onwards because by then a good Kharif crop would have come to help supplies increase especially for rice and pulses and other grains.

Mr. Rawat pointed out that full impact of rise in prices of petroleum products such as petrol, diesel, compressed natural gas, LPG and kerosene would begin its reflection from next two-three weeks in the sense that cost of transportation and movements of goods would further go up and stroke inflation.

Given a favourable monsoon season this year, jitters are already being felt in the supply chain management of food and other primary articles in India .

The Chamber feels that once, the supply chain process gets disrupted, it leads to shortages of supplies and fuels inflation. Already a major part of on-going inflation rate has significant influence of shrinkages on supply side.

Crude prices are not showing any southward movement while commodities' prices of metals like zinc, copper, aluminum go on soaring due to rising demand. All these factors would push up inflation even if state governments are able to manage movement of supplies.

This is because mismatch between demand and supplies has been growing. Naturally, inflation will further inflate and start deflating as projected after October onwards when kharif crop yield has come into the market, argued Mr. Rawat.

The Chamber has also pointed out that consumption patterns of some sections of society are not showing signs of stability because of availability of finance with them. Rising consumption patterns help supplies cause inequitable distribution of supplies.
Another significant factor which will prevent inflation to subside in next two months is due to the fact that festive season would have fallen by then in which even if pockets of masses are not that deep, demand grows and masses make purchases irrespective of prices going higher for essential commodities.

The Chamber, therefore, feels that the Reserve Bank of India (RBI) might resort to declare harsher monetary policies during its forthcoming review of Indian economy in 3rd week of July, which would mean that the apex bank can affect another 25 basis points hike in Repo Rate (RR), Reverse Repo Rate and even Cash Reserve Ratio .

The Chamber even anticipates some increase in Statutory Liquidity Ratio (SLR) although it has been consistently demanding decrease in it by over 2 percentage points. These steps under prevailing economic situation are considered positives for containment of inflation but once, such a decision is announced, the interest rates on lending as well as on deposits will have to be proportionately increased since, banks have been holding back announcements on it for quite sometime. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUGUST 05 :
USTAINED economic growth at 9 percent and more is possible only when stable and sustainable macroeconomic environment is maintained and stalled reform agenda is revived, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Reforms have to restructure policies and strengthen institutions to create enabling environment for markets to function.  Immediate measures needed include maintaining fiscal discipline to contain fiscal deficit, reforming tax systems to improve revenue productivity and minimise distortions and reforming fiscal management systems to improve productivity of public spending.

In addition, it is necessary to replace government’s pricing and output decisions with market decisions, continue with internal and external liberalisation, deepen markets and strengthen regulatory system to increase competition in economy.

The inclusive growth also calls for policy focus to improving agricultural productivity and creation of sustainable off farm employment opportunities for rural population and emphasis on skill development in both urban and rural areas to enhance their productivity and incomes.  Decontrolling industries controlled at present, allowing foreign direct investment into retail and insurance sectors, enactment of bankruptcy laws, allowing entry of private sector into some of sectors that are hitherto considered a public sector preserve and doing away with labour laws are some of the other policy reforms that are needed. Many of the State government laws relating are obsolete and need to be reviewed.

The Chamber has pointed out that Fiscal Responsibility and Budget Management Act has not helped to bring down overall fiscal liabilities of government. Although considerable progress was made in compressing deficits until 2007-08, large expenditure outgo on subsidies, pay revision and loan waiver and excise and service tax cuts to combat economic slowdown resulted in the deficit burgeoning to 10.4 per cent in 2008-09 and 10.3 per cent in 2009-10.

There has been attempt to return to fiscal consolidation path and consolidated deficit of Centre and states is estimated at 8.4 per cent in 2010-11.  The large deficits tend to put pressure on the credit market and tend to financially crowd out the private investment, with adverse impact on economic growth.

On issue of maintaining fiscal discipline, ASSOCHAM feels that persistence of large fiscal liabilities has delayed much needed capital account convertibility.  Large fiscal liabilities lead to financial repression and weakens banking and financial system. Besides, public ownership makes system even more vulnerable to political influence in decisions.  Besides hindering development of credit market, lack of contestable competition in financial system has not helped to develop robust and mature credit market.

Equally worrisome concern, according to the Chamber , that has impeded investment flow and constrained economic growth performance in the country is infrastructure deficit.   For improving industrial performance, it is imperative that infrastructure constraints are removed particularly in energy, roads, ports, airports and urban infrastructure.

While in some areas such as roads and airports it has been possible to make private sector to participate in infrastructure investment, in many others the progress has been slow.  The fiscal pressure has limited government’s ability to provide viability gap funding. Further, in many other areas, government will have to continue to make investment. Total capital expenditure at Central and state levels in 2008-09, is estimated at 4.8 per cent of GDP and this is clearly not adequate.

There is considerable reform that is needed to create an appropriate institutional environment as well. Vestiges of autarchic economic regime have continued and there is still a lot of faith in the protectionism and role of public sector, which can be seen in many spheres. The prevailing institutions do not provide structure of incentives necessary for faster growth and much more remains to be done in strengthening and deepening the market. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUGUST 04 :
LANNING Commission on Wednesday pledged to substantially narrow down prevailing gender biases against women in its 12th plan period approach paper and recommend higher allocation to fulfill intended objective when it was brought to it's notice that female participation in jobs of services have just touched 20 per cent of total workforce and their numbers in boardrooms of India Inc. are less than 2 per cent.

Disclosing this at a seminar jointly organized by ASSOCHAM and Centre for Public Policy which was presided over by Member of Parliament, Ms. Supriya Sule, Member, Planning Commission, Dr. Syeda Hameed said that the commission has begun exercise to make 12th Five Year Plan approach paper for 2012-2017, from today.

"It would do it's best to substantially bridge prevailing gender biases against women, not only from employment perspective but also address concerns and issues of discrimination against them and recommend higher allocations at policy levels so that visible improvements are seen in their plight in years to come", said Dr. Hameed.

During the occasion joint findings of the Chamber and Centre for Public Policy were released on women participation in boardrooms of corporate India and their employment in it in which it was highlighted that females' participation number in corporate assignments remains much below. It was pointed out that women representation in decision and policy making within large companies is less than 2 per cent.

However, in Macro, Small and Medium Enterprises (MSMEs) it is close to negligible against the widespread perception that females occupy over 5 per cent jobs in it, said ASSOCHAM Education Committee Chairman, Mr. Vinay Rai who also heads Rai Foundation. . Mr. Rai added that women participation is lowest in automobile, mining, agriculture, engineering and construction.

The findings further reveal that approximately 20 per cent females are engaged in services sector which predominantly falls within jurisdiction and administrative control of private sector in which there is no statutory obligation to hire females. On this estimated 20 per cent, of women services close to 8 per cent is hired for financial services, majority of which is in insurance, banking and professional services in areas of legal profession. In this segment females are doing extraordinary jobs in rendering actuary related services.

Interestingly, media and entertainment especially the electronic media engages over 10 per cent of females' services of a total of 20 per cent participation of theirs in the services sector of the Indian economy.

Although, young females are taking up professional careers in engineering, its impact in terms of their engagements in automobile sector as well as construction is negligible, but findings of ASSOCHAM state that this sector will emerge as one of the most promising areas for women's employment 5 years hence.

Speaking on the occasion Member of Parliament, Ms. Supriya Sule aired her apprehensions that Women Reservation Bill, pending in Parliament to enlist 33 per cent reservation for them in Indian legislature is unlikely to see light of the day. This is because an intense pressure is being built against it due to male chauvinism but women MPs will continue to resist the male dominance in Parliament until the bill sails through, added Sule. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, AUG 03 :
NVIRONMENTAL clearances, infrastructure shortfalls and land acquisition problems continue to be key concerns for corporates, intending to realize their investment dreams both for expansion as well as fresh investments due to which most of investment projects remain on announcement stages, says an ASSOCHAM Bizcon Study.

The study in which 266 corporates were interviewed by ASSOCHAM Research Bureau on issues of ‘Constraints on Corporate Investments’, 67 per cent of those interviewed said that environment clearances, infrastructure shortfall and land acquisition problems still remain the top 3 constraints due to which uncertainties prevail in realizing their investments.

The other concerns include beaureaucratic approvals, availability of labour with suitable skills, cost of credit and labour cost, besides demand conditions, said ASSOCHAM President, Dr. Swati Piramal while releasing ASSOCHAM Bizcon findings here today.

Environment clearances take away hell lot of a time of corporates as projects for expansion and modernization including new projects have to pass through over 36 channels at state and central levels before being finalized. On top of this political clearances are also needed as some of the projects involving thousands of crores of investments need to be cleared off strategically, said over 70 per cent of business leaders whose opinion were sought in this regard.

Despite liberalized economic environment for close to 20 years, infrastructure pitfalls go on with electricity and power including roads and highways creating problems for corporates in terms of moving their logistics which multiply their production costs and render them uncompetitive. As a result of higher production cost due to poor infrastructure facilities, inventories pile up at production centers and industries suffer immense losses and release of inventories cause challenge for factory owners, felt 80 per cent of such CEOs.

Fifty per cent of business leaders have stated that bureaucratic ways of functioning have improved drastically at centre in which higher echelon of government machinery is supportive and sensitive towards industry needs but at states’ level not visible improvement is seen in operational methodologies of bureaucrats. This leads to delays as projects have to be implemented in states in the federal set up of Indian constitution.

The ASSOCHAM Bizcon survey also highlights glaring deficiencies in terms of recruitment of skilled labour. Seventy per cent of corporates have felt that low labour is available at extremely competitive conditions in India, availability of skilled labour will remain a problem until systems are evolved by state-owned investments for imparting skills to a vast section of labour pool.

In addition to aforesaid problems, cost of credit is another problem for India Inc. which gets liquidity at a cost through which business operations cannot be sustained for longer period. Interest rates remain very high for majority of corporates with exception in large industries as these are denied credit at relaxed rates especially in MSMEs sector and other areas below it, felt 55 per cent of CEOs.

The survey has recommended a host of measures to fructify corporates investment plans by assuring for them congenial industrial atmosphere in which bureaucratic approvals and infrastructure shortfalls are streamlined and land acquisition is made simpler. Other measures recommended in the survey comprise tax concessions, relaxed rates of credit, better regulation of imports and liberal exit policy. (editor@thesynergyonline.com)

Thesynergyonline Economic Bureau

NEW DELHI, JULY 26 :
HE Indian Sugar Mills Association (ISMA) has shared its estimates of cane acreage and production in 2010-11 with the Department of Food and Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution. The industry association has also urged the government department to revise the official acreage data for 2009-10.

As per ISMA’s analysis area under cane during 2009-10 was underestimated at 41.79 lakh hectares while cane output under reported at 253 million tonnes. Based on actual sugar production, utilization of cane by alternate sweeteners and seed etc, the total cane output works out to a much higher figure of 313 million tonnes.

Assuming the average yield of sugarcane per hectare at 70 tonnes, this corresponds to an area of 44.5 lakh hectares in 2009-10 against the reported figure of 41.79 lakh hectares. The industry has urged the government to rectify this anomaly in order to get a proper estimation of projections for 2010-11.

Further for the sugar season 2010-11, ISMA estimates a total sugarcane output of 370 MT on account of fairly spread monsoons and actual data received from the mills. 275 sugar mills out of a total of 486 units have reported an increase in acreage of 18.7 percent in 2010-11 over 2009-10. Based on average yield of 70 tonnes per hectare, this corresponds to area under sugarcane cultivation to be around 52.8 lakh hectares. (editor@thesynergyonline.com)