"There has always been an elegance to the application of excellence." - Richard Diaz"

History

The Ancient Greeks had a concept of arete which meant an outstanding fitness for purpose. This occurs in the works of Aristotle and Homer.

Another related concept was eudaimonia which was the happiness which resulted from a life well-lived, being prosperous and fulfilled. The equivalent concept in Muslim philosophy is ihsan.

Practice makes perfect

Studies have shown that the most important way to achieve excellent performance in fields such as sport, music, professions and scholarships is to practice. Achievement of excellence in such fields commonly requires approximately 10 years of dedication, comprising about 10,000 hours of effort.

Excellence is a talent or quality which is unusually good and so surpasses ordinary standards. It is also used as a standard of performance as measured e.g. through economic indicators.

Excellence is a continuously moving target that can be pursued through actions of integrity, being frontrunner in terms of products / services provided that are reliable and safe for the intended users, meeting all obligations and continually learning and improving in all spheres to pursue the moving target.

In modern public relations and marketing, "excellence" is frequently criticized as a buzzword that tries to convey a good impression often without imparting any concrete information (e.g. "center for excellence in ...", "business excellence", etc.).

 

 

Cost management is key to Indian competitive advantage

Thesynergyonline Management Bureau

NOIDA, MARCH 17 : In an effort to help improve management practices in the industry and devising better cost management strategies, leading management institute IMS Noida today began its three-day periodic Management Development Programme that brings together leading academics, industry insiders and experts in the field.

This programme will discuss Strategic Cost Management, a crucial subject in management studies that pertains to the economics of reducing costs without compromising on quality and delivery.

Professor Rajendra Patel from IIM Ahmedabad will offer his valuable inputs and new perspectives on methods and techniques for appropriate cost planning, importance of managing costs and aligning them with the business strategy of an entity.

The forces of globalization, liberalization and privatization have not only knitted the world economies closer together but the spill-over effects of the changes happening in world are today felt more strongly and swiftly by all the economies. It is cost effectiveness that prompt hundreds of western companies to outsource jobs to low-cost destinations like India. Cost effectiveness is the key to competitiveness in a highly connected world like ours. Hence, there is greater need today to recognize different costing systems and strategies and devise better managerial decisions and business strategies to constantly remain cost effective.

"As a discipline, management studies needs to constantly evolve itself to include in its paradigm the changing needs of the time, which keep throwing up new challenges into the discipline. Cost management is an area of management that needs constant re-thinking and evolution to keep tiding over the rising costs. Today, Indian organizations may be benefitting from the outsourcing boom because of low labor costs; however, the wages are bound to increase and they need to devise other strategies to keep costs low and their competitive advantage high. The management development programme is an initiative from our end to help the management sector improve on various fronts. We are, therefore discussing cost management as it forms of the basis of any enterprise and management," said Dr KJS Anand, Executive Director, IMS Noida.

The first day of the programme began with inauguration and lamp lightening by Dr Debarshi Mukherjee, Chairperson, Centre for e-Commerce, IMS, Noida and Dr KJS Anand, Executive Director, IMS, Noida. The day introduced the participants to the basics such as costing terminology, cost objects, cost drivers, break-even analysis using concept of relevant costs, conventional method of indirect cost allocation, activity-based costing in product industry, service industry, relevant costs for alternative choice decisions etc. While the day 2 of the programme will discuss aspects of Management Control & Organizational Performance, ProPt Centres & Transfer Price issues, Analysis of Financial Performance, Corporate Performance Measurement in Multi Divisional Companies, Performance Measurement – Balanced Scorecard – Beyond Financial Numbers, Day 3 will deal with issues Target Costing ,Value Engineering, Just-in-Time, Theory of Constraints, Life Cycle Costing etc.

"What's measured improves" "As a discipline, management studies needs to constantly evolve itself to include in its paradigm the changing needs of the time, which keep throwing up new challenges into the discipline. Cost management is an area of management that needs constant re-thinking and evolution to keep tiding over the rising costs. Today, Indian organizations may be benefitting from the outsourcing boom because of low labor costs; however, the wages are bound to increase and they need to devise other strategies to keep costs low and their competitive advantage high. The management development programme is an initiative from our end to help the management sector improve on various fronts. We are, therefore discussing cost management as it forms of the basis of any enterprise and management," said Dr KJS Anand, Executive Director, IMS Noida. "With India emerging as the third largest startup ecosystem in the world, there is growing demand for efficient and innovative management graduates who are adept and trained at devising new strategies to resolve problems. While globalization has made more markets easily available, improved connectivity and helped fasten business processes, it has also increased competition and challenges to new businesses manifold. Hence, management development programmes are necessary to provide relevant training to the executives of different sectors of the economy operating at different levels in the organizational hierarchy, through real-world case studies, group discussions, and interactive presentations. I am honored to receive to the opportunity from IMS, Noida to share my knowledge and experience with all the management people," said Prof Rajendra Patel.

"With India emerging as the third largest startup ecosystem in the world, there is growing demand for efficient and innovative management graduates who are adept and trained at devising new strategies to resolve problems. While globalization has made more markets easily available, improved connectivity and helped fasten business processes, it has also increased competition and challenges to new businesses manifold. Hence, management development programmes are necessary to provide relevant training to the executives of different sectors of the economy operating at different levels in the organizational hierarchy, through real-world case studies, group discussions, and interactive presentations. I am honored to receive to the opportunity from IMS, Noida to share my knowledge and experience with all the management people," said Prof Rajendra Patel.

A visiting faculty at IIM Ahmedabad for Finance & Accounting now and with a past association of twelve years as a regular faculty, Prof Patel specializes in management planning and control. He worked closely with World Bank in debt rescheduling and providing balance of payment support for central African countries as a senior manager with Peat Marwick Mitchell & Co during 1978 -1985 and with Rolls Royce plc group as Finance director for over fourteen years. He has to his credit over 100 training programmes in India and Asia Pacific region.

Centre should draw more financial commitment from states private sector to sustain long-term funding of DFCs: Study

Thesynergyonline Economics Bureau

 

 

NEW DELHI, FEBRUARY 14 :
Unless commitment is made, there are only promises and hopes; but no plans." - Peter F. Drucker

"There's a difference between interest
and commitment. When you're interested in doing something, you do it only when it's convenient. When you're committed to something, you
accept no excuses - only results."
― Kenneth H. Blanchard

The Centre should draw more financial commitment from states and private sector (both domestic and foreign, especially pension funds) to sustain long-term financing of dedicated freight corridors (DFCs), said a recent ASSOCHAM-Yes Bank joint study.

"There is also a need to establish institutional mechanisms for business incubation, venture capital, to draw private investment in the DFCs," noted the study titled 'Dedicated Freight Corridors: Paving India's track to smart growth,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM jointly with Yes Bank.

DFCs are capital intensive and have very long gestation periods due to which they appear financially unviable at commercial funding rates thereby making them overly dependent on funding from government and multi-lateral agencies, highlighted the study.

The government should also set up 'national freight strategic plan' to provide direction for long-term implementation of freight-supportive policies, suggested the ASSOCHAM-Yes Bank study.

"Strategic decisions including unbundling terminal operations and corporatization of railways and ports will accelerate investment and modernize freight facilities, besides it would also help to prioritize projects and efficiently direct resources."

The study has further proposed to set up an independent regulatory authority to facilitate projects through coordination with various stakeholders, rationalize tariff and govern business.

"DFCs are envisioned to create sophisticated infrastructure to trigger economic development, inject foreign investment and attain sustainable development, however infrastructure development along DFCs is hampered by a combination of delayed clearances, cost overruns, land acquisition and financing problems," said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the study.

"Timely delivery of the projects is essential, in order to realize the full potential of the DFC strategy," said Mr Rawat.

"Stable macro-economic regime and simplification of regulatory and taxation process (including GST) is important to meet infrastructure projects' investment related needs that face delay in execution due to complicated procedures and uncertainties," he added.

The ASSOCHAM-Yes Bank study has also stressed on the crucial need to protect freight routes from encroachment.

Strategic development of transport infrastructure will spur growth of freight-intensive industries, generating both direct and indirect employment, and fuel economic development, noted the study.

Fostering private participation and social equity in all spheres including freight and logistics and urban and regional development is critical to unlock this opportunity and ensure inclusive development, it added.

"Sometimes, it is true, a sense of isolation enfolds me like a cold mist as I sit alone and wait at life's shut gate" 

Govt to bring accessible index for companies to see how disabled- friendly they are

Thesynergyonline Corporate Bureau

NEW DELHI, FEBRUARY 11 : "When you focus on someone's disability you'll overlook their abilities, beauty and uniqueness. Once you learn to accept and love them for who they are, you subconsciously learn to love yourself unconditionally." - Yvonne Pierre, The Day My Soul Cried: A Memoir

"I do not have a disability, I have a gift! Others may see it as a disability, but I see it as a challenge. This challenge is a gift because I have to become stronger to get around it, and smarter to figure out how to use it; others should be so lucky."

So the government may make about 3,000 Central and State government websites and 5,000 public buildings accessible and friendly for people with all types of disabilities, a top Social Justice and Empowerment Ministry official said at an ASSOCHAM event held in New Delhi on Thursday.

"Although no clear cut timeframe has been given but we expect that in next two years about 3,000 websites of central and state governments will be made disabled- friendly for people with all types of disabilities," said Dr Vinod Aggarwal, secretary, Department of Empowerment of Persons with Disabilities while inaugurating an ASSOCHAM conference on 'Empowering Disabled Persons with Accessible & Assistive Technology.'

"Secondly, we are going to make about 5,000 public buildings where people have to go much more often to be disabled friendly and make them accessible to people with all types of disabilities," said Dr Aggarwal.

The union government had launched a nationwide Accessible India Campaign on World Disability Day – December 3, 2015 with the vision to achieve universal accessibility that will enable persons with all types of disabilities to gain access and live independently in line with the United Nations Convention on the rights of people with disabilities.

"The three verticals of the campaign – built environment (hospitals, schools, colleges, office buildings, parks), public transportation and information and communication technology cannot be looked in isolation," said Dr Aggarwal.

He also said that more efforts and innovations are required to achieve the aims and objectives for successful completion of this campaign.

Talking about the need to make buildings disabled-friendly, Dr Aggarwal said, "Even the plenary hall of government's 'Vigyan Bhawan' is not disabled-friendly, we had to temporarily make it disabled friendly for conducting event on World Disability Day, the hall needs to be made disabled friendly at all times."

Highlighting the role of private sector in socio-economic transformation of persons with disabilities, he said, "Industry should come forward in a big way for promoting the objectives and targets of Accessible India Campaign by contributing aggressively through CSR activities, funding, making disabled friendly buildings, generating employment opportunities by taking up innovation and development of assistive technology, providing training and creating overall awareness."

In his address at the ASSOCHAM conference, Mr Mukesh Jain, joint secretary, Department of Empowerment of Persons with Disabilities said, "The Government is trying to build a pool of sign language interpreters and encourage the use of sign language by making every verbal information system in India in both public and private sectors."

He also informed that government will bring an educational assessment tool for companies whether in private or public to find out how accessible or disabled friendly they are.

"We are trying to build an accessible or disabled friendly index, we don't intend to punish anybody but we intend to educate people that these are the dimensions on which you can improve your services, systems and infrastructure so that it becomes more accessible," said Mr Jain.

He also said that government is trying to assimilate and incorporate the educational institutes in its initiative of Accessible India Campaign. "We have written to about 100 educational institutes like IITs, IIMs, schools of planning and architecture to create accessibility clubs in their colleges and schools not only for organising conferences and exhibitions but to create some transformative solutions for accessibility."

He also said that government was trying to make a procurement standard. "Any kind of procurement, be it a product, system or process should be aligned to the requirements of persons with disabilities, but it will take time."

• Human resources are like natural resources
• We recruit for attitude and train for skill
• Some people today are wandering generalities instead of meaningful specifics
• Children imitate their parents, employees their managers
• Every day is a training day and every event is a training even
• Recruiting should never be outsourced. Everyone at your company should be different in the same way
• "Able hands' are more favorable to business than 'adorable hearts'."

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Govt will come up with construction , demolition waste management rules by next month: Prakash Javadekar

Thesynergyonline Economics Bureau

NEW DELHI, FEBRUARY 10 :
The Centre will come up with rules on construction and demolition waste management by next month as a solution to reduce air pollution caused by construction dust, union minister for environment, forest and climate change, Mr Prakash Javadekar said at an ASSOCHAM event held in New Delhi on Wednesday.

"For the first time in India, we will come with separate rules for construction and demolition, hazardous, plastic and solid waste management rules," said Mr Javadekar while inaugurating a global summit on 'Smart Cities-Smart India,' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"We are bringing out all waste management rules in next 30-40 days one-by-one," he added.

Mr Javadekar also said that almost 20 per cent of pollution and dust in India's all major cities is caused to due to construction debris and dirt.

"Unless we change all organs of governance and all aspects of life, our cities, rural areas and even citizens will not become smart," said the minister.

On the issue of pollution, Mr Javadekar said that while entire nation had been debating about Delhi's odd and even scheme, Modi government took the decision to leapfrog to Euro-VI standards of emissions, vehicles and fuel norms by 2020.

"The government is investing Rs 60,000 crore to improve quality of fuel and it will be ready with fuel of Euro VI norms by 2019, it is the real game changer as it is a permanent remedy to reduce vehicular pollution," he said.

Mr Javadekar also said that the Centre along with Punjab and Haryana governments has managed to reduce 35 per cent of stubble burning in the first year which used to add to pollution in Delhi-NCR.

Talking about government's flagship Smart Cities' campaign, the union minister said, "It is a sustainable city campaign, it is about rebuilding the whole country with a fresh outlook, with people's participation, private and public investment, it will ensure that India grows to its real potential."

"We are sure that in 10 years we are going to make a real difference to our cities, rural areas and islands," he said.

Recalling his recent trip to Andaman and Nicobar Islands, Mr Javadekar batted for developing uninhabited islands from tourism perspective. "There is such a huge development potential for tourism, forestry, fisheries and others, as such our government has now decided for island development."

"Had we developed even few of such islands there would not have been Phuket, Langkawi and other such globally famous tourist spots," he added.

Traffic congestion is caused by vehicles, not by people in themselves." "Why do I always forget that traffic is a social affair?" - Stefan Emunds

Kerala transport policy requires
re-orientation: Study

Thesynergyonline Economics Bureau 

NEW DELHI, FEBRUARY 08 : "Traffic congestion is caused by vehicles, not by people in themselves."

"Why do I always forget that traffic is a social affair?"
― Stefan Emunds

And so roads in Kerala are under excessive pressure with traffic growing at a rate of about 10-11 per cent annually, moreover distribution of traffic is also highly skewed and is concentrated on district and city roads thereby leaving villages and remote areas virtually unconnected, noted a recent study by apex industry body ASSOCHAM.

"Transport policy in Kerala requires re-orientation and it is important to visualise the transport system as an integrated structure of different modes and services functioning as distinct entities in a level playing field with the element of inter-modal and intra-modal competition, thereby ensuring organisational efficiency and individual viability," highlighted the study titled 'Roadtech: Sustainable roads and highways,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The emphasis will have to shift from merely providing transport infrastructure and services to technological upgradation and modernisation in order to ensure mobility and not only accessibility, noted the study.

Besides, the thrust will have to be on provision of improved high quality services with minimum use of cross subsidisation and emphasis on achieving optimal inter-modal mix with appropriate pricing and user charges policy and through injection of competitive impulses.

There is a need to scientifically plan and develop transport infrastructure under a long-term perspective considering the economic transition of Kerala and status of knowledge economy, it suggested.

"The transportation network in Kerala is choking as a result of high population density and the resulted travel demands."

The national highway itself calls for improvement in terms of widening as most its length remains as two lane.

In Kerala, the most important challenge in the road sector involves building all-weather roads connecting each and every village. "This is essential to promote the development of backward regions and integrate them with the mainstream economy by opening them to trade and investment."

Research and development activities have an important role to play in meeting the challenges of modernising the road system, technology upgradation and finding cost-effective solutions to infrastructure problems in the state.

Road transportation network in Kerala:

The transport infrastructure of the state consists of over 3.3 lakh kilometres (kms) of road and road density in Kerala is 852 kilometre (km) per 100 square km and it is ahead of the national average of 387 km/100 sq.km. While the length of road per lakh of population is 991 km, the roads maintained by different Panchayats have also increased by 49 per cent in 2013-14.

DPE and SCOPE holds workshop
on CSR in SCOPE premises

Thesynergyonline Economics Bureau

Mr Ameising Luikham, IAS, Secretary, Department of Public Enterprises (DPE),Dr. U.D. Choubey, Director General, SCOPE ,Dr. Madhukar Gupta, IAS, Additional Secretary, DPE at a workshop in New DElhi on Monday

NEW DELHI, FEBRUARY 08 : "Justice is itself the great standing policy of civil society; and any eminent departure from it, under any circumstances, lies under the suspicion of being no policy at all."
― Edmund Burke

And so while inaugurating the workshop, Mr Ameising Luikham, IAS, Secretary, Department of Public Enterprises (DPE) asked for more vigorous efforts towards utilization of Corporate Social Responsibility (CSR) funds in judicious manner. He told that public sector enterprises (PSEs) have to work within the ambit of Companies Act 2013 and the Guidelines of the Government to undertake CSR activity.

Dr. U.D. Choubey, Director General, SCOPE highlighted the excellent work done by PSEs for corporate social sector which is a matter of paramount importance providing intangible benefits to corporate sector, sometimes even better than technology and patent. Dr. Choubey said if we are able to enhance the expectations of the society, we can claim the credit. He also urged for recognition and rewarding of the PSEs for excellent work and provide some fiscal incentives for fund utilized on CSR.

Dr. Madhukar Gupta, IAS, Additional Secretary, DPE and a galaxy of CPSEs representatives at top level participated in the workshop.

Capital goods industry write to PM
against excessive protectionism

Thesynergyonline Economics Bureau

NEW DELHI, FEBRUARY 08 :
Process Plant and Machinery Association of India (PPMAI) and apex body representing the process plant manufacturers in the country have written to Prime Minister Narendra Modi against excessive protectionism including imposition of Minimum Import Price (MIP) being given to the steel sector in the country .

Process plant and machinery manufacturers which include major companies include Larsen & Toubro(L&T) , Godrej, Thermax, Praj Industries, Aker Solutions, Toyo Engineering., ThyssenKrupp Industrial Solutions (India). (UHDE), Ion Exchange and BGR Energy Systems have strongly objected and expressed serious concern at perpetual protectionist environment being created excessively in favour of steel sector in the country without consulting the capital goods and industry sector.

"India is in the process of globalizing its manufacturing base through establishment of Capital Equipment and downstream industries in MSME to generate employment as well as boost Make in India vision through competitiveness of Indian products. However, government must also be understood that this goal is endangered if our industrial and trade policies are based on narrow perspectives of PROTECTIONISM FOR ONE individual industry. India should not be seen as a protectionist nation with unpredictable policies." Said Mr V P Ramachandran, Secretary, Process Plant and Machinery Association of India (PPMAI) .

"If steel industry including stainless steel is favoured with so much of excessive protectionism including curb on imports with anti dumping duties and additional safe guard duties and latest Minimum Import Price (MIP) in this competitive world, it will end up as a burden on the economy and scare away investors in other productive Capital Equipment as well as downstream MSME areas which have the potential to run efficiently and grow without support and develop export markets and most importantly generate employment for the youth in our nation,"said Mr Ramachandran .

"Government has already provided enough protection to steel industry through high imports duties, Rupee devaluation by over 50 per cent and trade barriers such as anti-dumping or safeguard duties. In a deregulated environment government is taking away capital goods industries right to access the required quality of raw materials and intermediates at competitive prices,"he said .

" Why only steel sector alone which is about 80 -90 per cent family owned business in the country is being taken care of and that too at the prospect of killing the downstream capital goods & MSME sector who are the backbone to make in India theme. The recent proposal by the Government to impose Minimum Import Price (MIP) for steel products without discussing with all the stake holders will further create confusion if arbitrary price is fixed and will hit domestic industry if asked to follow prices"added Mr Ramachandran.

"The current high import duties are also inverted. this basically protects the steel industry but hurts the business operations of downstream value added producers. thus, the steel industry can face lack of domestic demand if the closure of downstream sector happens in near future. Government must therefore look at the big picture and not sacrifice the Capital Goods and MSME sectors to protect the business interests of steel producers alone," Mr Ramachandran said.

"PPMAI urges the government to make the duty structure logical and bring down the import duties on semis and intermediates like Hot and Cold rolled carbon steel and stainless steel to the original rate of 5 per cent. if China , Korea & Japan are dumping at low price , start anti dumping investigations instead of further protection through import curbs as Indian Economy is not only steel sector alone "he said.

 

CVC inaugurates SCOPE HR Summit

Thesynergyonline Economics Bureau

NEW DELHI, FEBRUARY 07 :
"Whether your transformation happens through trauma, surprise, or intention, the process begins because of a growing need for change." - Suzy Ross

And so Standing Conferece of Public Enterprises (SCOPE) and International Labour Organization (ILO) jointly organized the SCOPE International HR Summit 2016 on the theme "Reinventing HR: Breaking the Mould Globally" here on Friday. Mr K.V. Chowdary, Central Vigilance Commissioner (CVC) inaugurated the summit and released the Special Issue of Kaleidoscope journal on HR.

Mr Ameising Luikham, IAS, Secretary, Department of Public Enterprises delivered the keynote address.

Mr R.G. Rajan, Chairman, SCOPE and CMD, RCF, Dr. U.D. Choubey, Director General, SCOPE and others addressed the inauguration session. CVC Mr Chowdary also presented Gold Trophies to the winning PSEs of the HR Case Study Contest and inaugurated the exhibition.

Inaugurating the Summit Mr K.V. Chowdary, CVC said any organization is as good and is recognized by its brand culture. HR department holds the key to build up the organizational culture. Cultivate Organizational Ethics and Values so that one could easily recognize the organization by simply looking at its employees. The way employee manages himself in and out of the system is crucial and the responsibility falls on HR. CVC appreciated SCOPE's effort for organizing the International Summit.

"Maybe deep down inside we were all still in our formative years. Maybe it was never too late for any of us to change." - Claire Cook, New Leash on Life

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The journey of reinventions:

Slide Down || Slide Up

 

 

Expressing concerns over the skill development of the country, Shri Ameising Luikham said India needs a lot in skill training and it is a priority for Public Sector Enterprises.

SCOPE Chairman, Shri R.G. Rajan, who is also CMD of Rashtriya Chemicals & Fertilizers Ltd told that HR needs to innovate today to compete at global level. He was of the opinion that a company that invests in people have good future.

Dr U.D. Choubey, Director General SCOPE said," Talent Management and present attrition rate are two major challenges in front of HR. The challenge is to retain the talent and manage the work diversity, succession planning and update the skill of employees. He emphasized the greatest need of transparent, ethical, accountable and responsible organization. "

The Summit is being attended by large many participants from India and outside including senior representatives from ILO.

 

'Put coking coal blocks to auction , allocate them through competitive bidding

Thesynergyonline Economics Bureau

NEW DELHI,FEBRUARY 04 : Apex industry body ASSOCHAM has urged the government to put coking coal blocks to auction and allocate them through competitive bidding in order to boost domestic production of coking coal and generate revenue for the exchequer.

"Coking coal blocks should not be allotted on nomination basis as this would delay coking coal development in India and discourage creation of level playing field in steel sector," said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a communication addressed to Mr Piyush Goyal, union minister of state for coal, power, new and renewable energy.

Import of coking coal by India's steel industry crossed 45 million tonnes (MnT) in 2014-15 as against about 39 MnT in 2013-14 and the same is likely to increase to 180 MnT in wake of India's ambitious target of producing 300 million tons of crude steel per annum by 2025.

Besides, India's coking coal import has also increased from 13 MnT in 2003-04 to over 39 MnT in 2013-14 and during the same period coking coal production dropped from about 18 MnT to 14 MnT and supply of washed coking coal to steel plants was only 6.6 MnT in 2013-14.

"This is resulting in a loss of forex reserves, stress in inland transportation and logistics and congestion at ports, as such it is imperative that indigenous production of coking coal is given a big thrust," said Mr D.S. Rawat, secretary general, ASSOCHAM.

"Allocation of coking coal blocks to steelmakers has much merit as steel industry is capable of efficiently utilising 100 per cent of prime coking coal reserves from the blocks," said Mr Rawat.

In its letter to the union minister, ASSOCHAM has highlighted that many virgin coal blocks of Bharat Coking Coal Limited (BCCL) are lying undeveloped despite being allocated long back, while operational blocks of BCCL are unable to produce to their full potential.

Similarly, ASSOCHAM has urged that coking coal blocks should be allocated to public sector steelmakers to ramp-up production to meet country's growing coking coal needs.

"Farming is a profession of hope" - Brian Brett

'Well-developed commodity futures market imperative to ensure farmers' welfare'

Thesynergyonline Economics Bureau

NEW DELHI, FEBRUARY 03 :
"A farmer, as one of his farmer correspondents once wrote to Liberty Hyde Bailey, is "a dispenser of the 'Mysteries of God.'"

A well-developed futures market for agricultural commodities is imperative for farmers to predict their earnings and plan their future investments as these markets reduce the range of seasonal price variations thereby protecting the farmers from post-harvest slump in prices, union agriculture and farmers welfare minister, Mr Radha Mohan Singh said at an ASSOCHAM event held in New Delhi on Wednesday.

"Our small farmers have not been able to reap benefits of India's growth, technological advancement and overall development as they lack bargaining strength and possess limited awareness about market conditions," said Mr Singh while inaugurating the ASSOCHAM 14th Commodity Futures Market Summit.

However, the union minister suggested for major transformation of physical market considering that most farmers in India do not participate in futures market due to lack of expertise in hedging price risk, besides many do not have enough marketable surplus and enough cash to meet margin requirements.

He said that factors like inefficient physical operations, excessive crowding of intermediaries, long and fragmented market chains and low-scale have deprived farmers of fair price for their produce.

"Farmers should get fair price for their produce that is the biggest and foremost challenge," said Mr Singh. "We are in the process of removing all discrepancies to promote agriculture sector across India."

The union minister informed that government has given funds to about 214 markets from eight states that have come up with a proposal to join the online trading platform National Agriculture Market (NAM).

"The strategic partner has been hired to make an e-trading platform and computerise the markets, I believe that we will have a single e-trading platform for 200 markets by September 25, 2016 and we will add another 200 markets by March 2017 as we aim to connect 585 markets and this number might increase considering the number of proposals being received from states," said Mr Singh.

He said that NAM will ensure expansion of existing markets and will also facilitate transactions where physically markets currently do not exist. "While material flow (agriculture produce) shall continue to happen through mandis, an online market would reduce transaction costs and increase transparency."

Seeking the industry's co-operation and active engagement, Mr Singh said "The success of NAM programme will depend not merely on technical solutions, but on complete involvement and collaboration all players."

He added that government would provide full support to the futures market to improve remuneration to farmers through hedging, risk mitigation and strengthening commodity exchanges.

RBI keeps keeps policy rate
unchanged at 6.25%

Thesynergyonline Economics Bureau

NEW DELHI, FEBRUARY 02 : Reserve Bank of India (RBI) in 6th bi-monthly Monetary Policy Review on Tuesday kept the policy repo rate unchanged at 6.75 per cent . The central bank kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability .

Inflation has evolved closely along the trajectory set by the monetary policy stance. With unfavourable base effects on the ebb and benign prices of fruits and vegetables and crude oil, the January 2016 target of 6 per cent should be met.

Going forward, under the assumption of a normal monsoon and the current level of international crude oil prices and exchange rates, inflation is expected to be inertial and be around 5 per cent by the end of fiscal 2016-17 (Chart 1).

However, the implementation of the VII Central Pay Commission award, which has not been factored into these projections, will impart upward momentum to this trajectory for a period of one to two years. The Reserve Bank will adjust the forecast path as and when more clarity emerges on the timing of implementation. Vagaries in the spatial and temporal distribution of the monsoon and the impact of adverse geo-political events on commodity prices and financial markets add additional uncertainty to the baseline.

For 2016-17, growth is expected to strengthen gradually, notwithstanding significant headwinds. Expectations of a normal monsoon after two consecutive years of rainfall deficiency, the large positive terms of trade gain, improving real incomes of households and lower input costs of firms should contribute to strengthening the growth momentum.

In keeping with the Government's start-up India initiative, the Reserve Bank will take steps to ease doing business and contribute to an ecosystem that is conducive for growth of start-ups. These measures will create an enabling framework for receiving foreign venture capital, differing contractual structures embedded in investment instruments, deferring receipt of considerations for transfer of ownership, facilities for escrow arrangements and simplification of documentation and reporting procedures.

The current momentum of growth is reasonable, though below what should be expected over the medium term. Underlying growth drivers need to be rekindled to place the economy durably on a higher growth trajectory.

The revival of private investment, in particular, has a crucial role, especially as the climate for business improves and fiscal policy continues to consolidate. The Indian economy is currently being viewed as a beacon of stability because of the steady disinflation, a modest current account deficit and commitment to fiscal rectitude. This needs to be maintained so that the foundations of stable and sustainable growth are strengthened.

Market Reactions :

If the Pay Commission recommendations are accepted and implemented without any dilution or staggering, the consequences are going to be disastrous for the economy, coming from deteriorating quality of expenditure both at the state and central level. Let us hope, we do not remain in the fire-fighting mode even when there are immediate concerns on growth revival. The tepid sale of the automobile firms in January is a clear pointer of slackening consumer demand amidst continuation of high interest rates. The picture is further marred by the level of stressed assets in the economy, said Mr. Sunil Kanoria, President ASSOCHAM.

The ball is certainly now in the court of the Finance Minister Mr Arun Jaitley who must ensure that his Budget is innovative in creating a trigger impact on investment in the key infrastructure while there should be a well-coordinated inter-ministerial approach to clear the stalled projects. With so much pressure on the fiscal, the Finance Minister may have to depend on some off-Budget tools to boost investment, said Mr. Kanoria.

With the rural economy in distress due to failure of monsoon for two successive years, the macro picture could become more challenging. To that extent, the RBI Governor is justified in waiting for clarity before he outlines his priorities for the next financial year. He would like to wait for the effects of likely events including the Budget announcement and the Monsoon, What the US Fed is going to do in March, and the effect of turmoil in global economic environment also remain areas of concern.

As the financial industry is facing liquidity crunch, ASSOCHAM expects RBI to keep a watch on the unfolding situation and ensure that enough cash is available in the system to help growth, said its Chief.

"The truth is not in the touch of a stone, but in what the stone tells you."

4- day "STONA 2016 Fair" to be held
in Bangalore from February 03  

Thesynergyonline Economics Bureau

BANGALORE, FEBRUARY 01 :
"No matter what your origin or beliefs, rather adolescent or full grown. Thoughts are scribed in pencil but actions are carved in stone" - Carl Henegan, Darkness Left Undone

And so Federation of Indian Granite and Stone Industry will be organizing "STONA 2016 Fair, international stone exhibitions from February 03 to 06 , 2016 at Bangalore International Exhibition Centre (BIEC), Bangalore.

STONA 2016 Fair is the 12th International Granites and Stone Fair - an exhibition showcasing the unique range of country's colorful, eye-catching natural stones and provides a platform that helps in demonstrating the capabilities, capacity and the most modern and latest techniques in the craft of stone workings. The Natural Stone Industries, which come under the category of Ornamental or Decorative building stones like Granites, Marbles, Sandstones, Slates, Quartzite etc., and ancillary and auxiliary Industries of Machinery, Tools, Consumables related to Stone Industries will be participating in the conference.

The aim of STONA 2016 Fair is to give the natural stone industry in India a significant growth opportunity with higher visibility, a professional oriented visitor profile and extremely efficient business development modules. Delegates from India, Brazil, Italy, Portugal, Turkey, Egypt, China, Taiwan, Korea and a host of other countries have been participating in large numbers as STONA. This provides enormous business opportunities and also opens a window to new trends in the natural stone sector. Over 600 exhibitors, diverse seminars and more than 10,000 visitors each day of the event is what STONA will have on offer. Besides the highlight of STONA 2016 will be - Shilpgram, showcasing the skill of Indian artisans who will exhibit their skill before the international visitors.

The STONA 2016 Fair is expected to have participation from leading Architects, Hoteliers, Builders, Real Estate Promoters, Town Planners, Decorators & Designers, Interior Designers, Stone Quarry Owners, Stone Processors, Importers & Exporters, Traders, Transporters of Stone Products, All in all, every market leader in the Natural Stone Industry.

Speaking on the occasion Mr R. Sekar, president -Federation of Indian Granite and Stone Industry (FIGSI) said, "The STONA fair has been recognised all over the world. STONA has become a brand name in the world and it has become a very powerful platform for the Indian Industry to market the Indian stone internationally."

The export value of Indian stone trade is around 2 billion which is 2 per cent of the world trade which is around more than 100 billion US$.

"You have the legs and other also have it; they have the brain and you have it! Stop thinking you can't transact the business that others can. If you do, you are raising your inflation rate!" 

'RBI needs to target WPI inflation of
3-4 % continuous deflation harming growth'

Thesynergyonline Economics Bureau

NEW DELHI, FEBRUARY 01 :
"Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair." - Sam Ewing

And at a time when central banks in most parts of the world are going to new lengths to ease money and push growth, the ASSOCHAM expects the Reserve Bank of India (RBI) to at least take note of the fact for well over a year, the Wholesale Price Index (WPI) for several industrial products has remained in a deflationary mode, requiring an urgent infusion of life –saving consumer demand.

"A whole lot of manufactured products including cotton textiles, manmade products, chemicals and organics, rubber –plastics, iron and semis, have suffered deflation. Besides, there are several other items such as leather and leather products and machine tools which are near zero inflation reflecting poor demand and virtually no pricing power left with the manufacturers. It is almost a distress situation," ASSOCHAM President Mr Sunil Kanoria said, seeking cut in interest rates in the policy Repo by the RBI.

He said while the RBI is certainly not expected to go anywhere near the western central bankers, who are going to the other extreme positions of zero or negative interest rates, Dr Raghuram Rajan can be a little more accommodative with the monetary policy to boost the economic growth, particularly in the industrial production.

The Index of Industrial Production (IIP) declined by annualised 3.2 per cent in November, 2015. The cumulative growth for the period April-November 2015 over the corresponding period of the previous year stood at mere 3.9 per cent. Mining, manufacturing and electricity sectors continue to remain in distress.

"In fact, when it comes to WPI, it is time the RBI started setting target for at least 3-4 per cent inflation over the next two quarters. We cannot afford deflation for long. Looking at only Consumer Price Index alone will not be a wise policy," the ASSOCHAM said.

Besides creating the demand at the consumer level, the moderating of interest rates would bring in much-needed interest burden of the over-leveraged industries in sectors like real estate, telecom and infrastructure.

Mr Kanoria also impressed upon the RBI to further exert pressure on the banks to adequately pass on the previous cuts in the interest rates. "Even though the policy rates have been cut by up to 125 basis points in the last one year, there are still industries particularly at the SME level which are still given loans by banks at 13-14 per cent. This must stop and accountability be fixed".

Wellness Slideshow

SCOPE holds welllnss programme for PSUs

Thesynergyonline Health Bureau

L to R : Dr H.K. Chopra, president, World Wellness Foundation, Dr U D Choubey, Director General, SCOPE, Dr Shikha Sharma, Managing Director, Nutri Health, Dr S Malik, Professor, Deptt of Oncology, AIIMS and Dr Astha Sharma, Psychiatrist

NEW DELHI, JANUARY 27 : "We are living in times that demand more and more of our brains and muscles, of our nerves and physical energy. Only those who are strong and know how to keep it so, can stand the wear and tear. It pays to stop once in a while to look over our machinery and oil the parts that need it."- Adrian Peter Schmidt

And so Standing Conference of Public Enterprises (SCOPE), World Wellness Foundation and Expressions India jointly organized an interactive session on Mind Wellness and Happiness at Workplace with focus on heart protection and cancer prevention for the benefit of employees of public sector enterprises.

While welcoming, Dr U.D. Choubey, Director General, SCOPE said that employees of PSUs are working in a global competitive environment and undergo a lot of stress and strain in performing their day-to-day duties. This causes hypertension, diabetes and lifestyle related problems which lead to a number of health problems.

He urged the employees to adopt a healthy and disciplined lifestyle to combat stress in the fast changing environment.

Dr Choubey told that wellness, recognition and limelight are only one part of life whereas the most important part covers health. Therefore, PSUs employees must learn the art and science of healthy living which Wellness programme addresses.

Dr. H.K. Chopra, President, World Wellness Foundation, said that 80-90% of diseases are caused by the faulty lifestyle at workplace. Heart attack, brain attack, hypertension, cancer, obesity, asthma, depression, liver diseases, migraine etc. are all linked to negative stress with poor cooping capabilities at workplace, he added.

Eminent doctors of cardiology, oncology, mental health and nutrition also addressed the programme.

Terrorist attacks on India, France attack on fundamental values of liberty, freedom and universal brotherhood : President Mukherjee

Thesynergyonline News Bureau

NEW DELHI, JANUARY 26 : The President of India, Mr Pranab Mukherjee received Mr Francois Hollande, the President of the French Republic and chief guest of the Republic Day at Rashtrapati Bhavan on Monday (January 25, 2016). He also hosted a banquet in his honour.

Welcoming the French President, President Mukherjee congratulated him on the successful CoP-21 in Paris. The President said the growing strength of India-France strategic partnership in defence, space, civil nuclear energy and security demonstrates high mutual trust and understanding between the two countries.

The President appreciated the French President for his leadership and resolute action in the wake of the dastardly terror attacks in Paris in November last year. He said the French President’s response reflected the spirit and determination of the people of France to not let the terrorists succeed. India appreciates the support and solidarity expressed by France for India in the wake of the attacks in Pathankot. Whether in Paris or Pathankot, terrorist attacks on democracies such as India and France are an attack against fundamental values of liberty, freedom and universal brotherhood. Terrorism is a global threat and it poses a threat to all nations. No cause can justify terrorist acts. It is imperative that the world act in unison against terrorism, without political considerations.

In his banquet speech President Mukherjee said France made history as the only country to have been accorded the honour of being Chief Guest at India’s Republic Day celebrations a fifth time. When the French Infantry troops march in step with Indian troops in the parade tomorrow, they will make history yet again by being the first-ever foreign contingent to do so. This is not just history in the making – it is a testimony to the enduring bonds between our two civilisations and our two people; it is a tribute to our long-standing and strategic partnerships. It is emblematic of our two national mottos: “Liberty, Equality, Fraternity” and “Satyameva Jayate”, coming together, with the power to inspire the world to achieve the universal ideals of peace and justice.

The President said the two countries must fight resolutely for freedom from the forces of intolerance, extremism and terrorism. The dastardly terror attacks in Paris and Pathankot have underlined the urgency for countries like India and France to jointly combat this existential threat to humanity and human civilisation.

The President said friendship between India and France is driven by a remarkable similarity in the ideals and aspirations of our people. Our civilizations have interacted with each other over the centuries, united by a shared vision of the world we want to live in - a world that is premised on individual liberty, freedom and equality; a world that respects pluralism and democracy; a world that seeks tolerance and peaceful co-existence. The deep bonds of our time-tested friendship are only set to strengthen in the years ahead, anchored as they are in this rich, unshakeable foundation.

The President said while our cooperation in science and research, education, culture and health is growing, he was glad that the Government of France and the captains of French industry are actively partnering India in our ambitious developmental initiatives, infrastructure, smart cities, clean energy, railways and skill development.

The President said the unveiling of the historic findings of an Indo-French archaeological team dating back to 2.6 million years in Chandigarh and the proposed Indo-French partnership in Mars exploration, juxtapose the incredible breadth of our partnership - from jointly plumbing the depths of history to joining hands to explore the stars and the skies. Chandigarh is also the capital of Punjab and Haryana, a region from where more than a century ago, thousands of Indian soldiers fought France’s battle during the First World War and close to ten thousand of them today lie buried in scattered cemeteries in France, having made the supreme sacrifice for the freedom of France.

The President said we have begun the New Year with fresh hopes and dreams and a resolve to jointly overcome the challenges facing us. We live in difficult times characterized by violence, fundamentalism and inequality. But we also live in times of brilliant innovation, of great creativity, of unparalleled global interaction. He said the French President’s visit heralds new beginnings in scaling new heights in India-France bilateral relationship and in the common quest for peace, stability and prosperity for all.

Ahmedabad to host 3-day global meet 'Chemtech Gujarat World Expo from Jan 1 

Thesynergyonline Economics Bureau

NEW DELHI, MUMBAI, JANUARY 25 :
'CHEMTECH Gujarat World Expo 2016', the three- day international exhibition and conferences will bring the entire ecosystem of downstream chemicals industry to the common platform over the three days if the event from February 10-12, 2016 in University Grounds Ahmedabad.

The event will create strong opportunities for the chemical manufacturers to engage with the technology providers for the downstream chemicals processing, engineering, equipment & machinery, industrial automation, environment, water and wastewater treatment technologies over the three days of mega event in Ahmedabad.

CHEMTECH Gujarat World Expo 2016 is supported by the Ministry of Chemicals & Fertilizers, Government of India, Gujarat as the Partner State and IndexTB Gujarat.

Over 200 exhibitors from 14 countries will showcase latest technologies for applications across Refining & Petrochemicals, Chemical & Fertilizers, Specialty Chemicals, Pharma & Biotechnology and various other manufacturing industries.

Eminent lineup of speakers will include Mr B Narayan, Group Projects (Procurement and Projects), Reliance Industries Ltd; Mr A M Tiwari, Managing Director, Gujarat Alkalis and Chemicals Limited (GACL), Dr S.K Nanda ,CMD, Gujarat State Fertilizer Corporation , Mr SK Dhargupta, Executive Director, IOCL – Gujarat Refinery, Mr P D Samudra, Managing Director, TKIS – India (earlier UHDE India),Mr K Ravindranath, Senior VP & Whole Time Director, L&T Hydrocarbon Engineering, Mr NandaKumar, Managing Director, Chemtrols Industries , Mr A B Pandya, former Chairman Central Water Commission, Ministry of Water Resources, Government of India & Chairman, WaterEX Gujarat World Expo 2016

Mr Vijay Rupani, Minister, Transport, Water Supply, Labour and Employment, State of Gujarat to inaugurate WaterEX World Expo 2016 on February 11, 2016.

"Bringing our flagship event to Gujarat has been a natural progression for CHEMTECH, as the state of Gujarat has witnessed phenomenal growth in the chemicals downstream and petrochemicals during the past decade and recognised as one of the global destinations for investments in chemicals. Today, the state of Gujarat hosts some of the largest chemical and petrochemicals facilities in the country and continues to offer opportunities for investments in the chemical downstream industry. This clearly means ample scope for the technologies and the services providers sectors right from engineering services… to chemical processing technologies…to manufacturers & suppliers of process equipment & machinery manufacturers …to industrial automation solutions…to environment, water & wastewater management services providers and various other industries," says Mr Maulik Jasubhai, Vice Chairman & Chief Executive, Jasubhai Group & CHEMTECH Foundation.

He adds, "The event also strives to encourage Make in India for manufacturing Chemical, pharma, engineering and water technology process equipment and technologies and also provides a platform to global investment community to connect with stakeholders."

The major highlight of the expo will be thematic seminars that will be held concurrently to deliberate on topical issues which are of critical importance in today's context with the industry.

 

Adversity slideshow

"One thing you can't hide - is when you're
crippled inside." - John Lennon

More pain left for equity investors in
short, near- term: ASSOCHAM study

Thesynergyonlin e Economics Bureau

NEW DELHI, JANUARY 22 :
"Pain is a pesky part of being human, I've learned it feels like a stab wound to the heart, something I wish we could all do without, in our lives here. Pain is a sudden hurt that can't be escaped. But then I have also learned that because of pain, I can feel the beauty, tenderness, and freedom of healing. Pain feels like a fast stab wound to the heart. But then healing feels like the wind against your face when you are spreading your wings and flying through the air! We may not have wings growing out of our backs, but healing is the closest thing that will give us that wind against our faces." -
― C. JoyBell C.

Notwithstanding relief rally caused by European Central Bank chief Mario Draghi about some stimulus in March, equity investors are likely to see more pain in the short-to-medium term since overall risk aversion to new investment continues to stay, hitting the investment sentiment in the bargain, an ASSOCHAM study has said.

According to the ASSOCHAM study, "It would be a mistake to separate India from rest of the world when it comes to the equity investment."

"In well-integrated financial markets today, it would be rarest of rare that the Sensex and Nifty would move a direction different from rest of the Asian markets, European indices and the Dow Jones. In about 90 per cent of cases, they all move in a tandem. Thus, the capital outflows will not stop merely because we describe ourselves as a bright spot. The real test would be on the way India takes advantage of the fast unfolding global situation which gives a positive bias to our policy makers in terms of a huge windfall through crude oil fall," it noted.

However, shaving off 1-1.5 percentage points of GDP because of nose-diving of exports which have a big multiplier on the job markets, would also weigh on the macro economy, more so through trade deficit.

"Despite the domestic institutional investors (DIIs) holding the ground in the recent few months, it is not going to be great time for the stock investors at least for the next few months," said the study, adding these outflows are also having an impact on the rupee exchange value near about 68 to a dollar.

The Chinese saga is not done as yet and transition for the world's second largest economy from an export-investment–led model to the one based on domestic consumption is not going to be a smooth sailing , leaving bruising impact on several big economies, including the US, Europe, Russia and India.

"However, armed with solid foreign exchange reserves, the rupee depreciation should not be a great cause of worry since bulk of the commodities like oil through which inflation used to trickle in, are trading at new lows. In a way, the rupee depreciation is helping our exporters to ward off their competitive edge to some extent," ASSOCHAM secretary general Mr D.S. Rawat said.

Though India had closed the year 2015 with a loss of about five per cent when the Sensex had closed at 26,117, the expectation was of a better 2016. But the first few weeks of the New Year have been a disaster for the equity investors who are scouting for alternatives.

Going forward, the ASSOCHAM analysts would also prefer to err on the side of caution, rather than going bold. In the mean while, the domestic economy, particularly the next Monsoon and the directional shift in the Budget could make a great difference to the overall sentiment, the paper said, expecting rural India to get more attention from the Modi Government.

Finally, "It's during a storm that the best songs get written."
― Marty Rubin

Create Venture Fund investment for young entrepreneur in N-E: Jitendra Singh

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 20 :
The Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Dr Jitendra Singh said that the Ministry of DoNER could possibly create a venture fund for investment in North- East for young entrepreneurs without much of a liability, said at an ASSOCHAM event held in New Delhi on Wednesday

"A three-day mega Northeast festival will be held at Pragati Maidan, New Delhi from February 12 to 14, 2016. It will aim at showcasing the vast resource and potential of the Northeastern States," said Dr Singh while inaugurating "Start Up India 2016" organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Dr. Singh said, "We believe that India's economic future lies in encouraging startups which will bring dynamism, new thinking and create jobs to the Indian economy."

He further said, presently we have 80 million population which is below the age of 35 that's the huge strength and I think this is the most opportune time for startup to have happen in India.

Mr Daniel Carmon, Ambassador, Embassy of Israel,said," Startups can grow almost anywhere. But in order to really cultivate them, an ecosystem has to be in place. The latest initiative announced by PM Modi on Saturday is doing exactly that. It provides the needed conditions to evolve and develop. Israel applauds this initiative and would be happy to share its experience in developing suitable ecosystems, comprehensive mechanisms that will encourage unique and sustainable economic growth in India.

There are many ingredients and factors to this success, but I would like to elaborate on one of them: the "Israeli Way", the ability to dream. For it takes dreamers to bring an ancient nation back to its historic homeland; For it takes dreamers to believe that an arid land can become a leader in agriculture; for it takes dreamers to dare to dream and to live the dream, said Mr Daniel Carmon.

In Israel there are over 5000 start-ups and still growing. Israel holds the highest number of startups per capita and has a strong viable venture capital industry. It enjoys as the highest rate of Governmental investment in R&D (almost 4% of GDP). It has developed a unique alliance between Society, Government, Industry, Academia, Technology Transfer Companies, Innovators, Inventors, Private Sector, Human Capital and Venture Capital. The startup ecosystem is ready to take risks, to accept failure, to be curious, to argue, to challenge.

Start up and innovation are also closely related to finding out the next "big thing". Israel is considered to be a leader in two growing fields: IoT – the Internet of Things – and cyber. Two fields with an enormous growth potential mainly because these two interdisciplinary fields will affect almost anything we do in the future, added Mr Daniel Carmon.

In cyber, there are over 300 cyber companies in Israel including a dedicated cyber-park - Cyberspark, located in Beer Sheva, Israel's Cyber Capital. It is designed to materialize the potential and create a unique cyber ecosystem that includes also amongst others, an increasing number of multinational companies and of course - startups. Israel will also soon open the world's first aviation cyber innovation center in Tel Aviv University that will highlight innovative technologies and solutions.

Startups are an engine of growth. They have the potential to create jobs for a growing number of people and open the door for new segments of economic activity. Let me mention in this context the growing e-commerce industry in India that has evolved very rapidly, creating giants like Snapdeal, Flipkart and others, making shopping for many of us easier and more accessible, mentioned Mr Daniel Carmon.

Mr Puneet Y. Dalmia, Managing Director, Dalmia Bharat Limited said, "the StartUp India is really an out-of-box idea and its strength lies in taking programme well beyond IT and Apps ….the involvement of the private sector and academia through incubation centres should make a difference".

According to the joint study undertaken by ASSOCHAM and Grant Thornton on "Startups India-Overview" released today says that 2015 witnessed the maximum traction in the space with over 600 companies getting funding; more than US$ 2 bn being deployed by PE and VC funds.

Over and above the US$ 2 billion deals in the startup specie other top deals in the overall tech specie in 2015 include the usual suspects i.e. investment of US$ 700 mn in Flipkart by Sequoia Capital & Steadview Capital, US$ 500 mn in Snapdeal by Alibaba, Softbank & others, US$ 1100 mn in Olacabs by a group of investors including Tiger Global, Softbank, DST Global etc, mentioned the study.

Investment momentum in startups have increased rapidly over the last five years with investment values increasing at a CAGR of more than 57% between 2011 and 2015 while investment volumes have increased at a CAGR of over 62%, noted the study.

The startup ecosystem continue to be concentrated in regions like NCR, Bangalore and Mumbai which together contribute to 87% of total investment value and 84% of total investment volumes, adds the paper.

Others who also spoke during the conference Mr Sujit Kanoria, Managing Director, Shristi Infrastructure, Mr Rajkumar Dhoot (MP), past president, ASSOCHAM, and Mr D.S. Rawat, Secretary General.

"How do you explain plastic to a medieval forest bard?" - Jefferson Smith, Strange Places

'Need to address polluting characteristic
of plastic in a scientific manner'

Thesynergyonline Econmics Bureau

NEW DELHI, JANUARY 19 : "Plastic should be a high value material... [It] should be in products that last a long time, and at the end of the life, you recycle it. To take oil or natural gas that took millions of years to produce and then to make a disposable product that last minutes or seconds, and then to just discard it--I think that's not a good way of using this resource. (Robert Haley)" - Susan Freinkel, Plastic: A Toxic Love Story

Today plastics are the material of choice in packaging for the sectors such as FMCG, food and beverages, pharmaceuticals etc. . Plastics are used heavily for
packaging due to innovative visual appeal for customer attraction and convenience.

Additionally, they improve the hygiene quotient and shelf-life of the products especially in food and beverages segment.

Nothing on this earth lasts forever. Except maybe plastic."
― Patricia Dunn, Rebels by Accident

A report prepared by FICCI and Tata Strategic Management Group (TSMG) on plastic industry titled 'Plastic Packaging - The Sustainable Choice' was released by FICCI today at the conference on the plastic packaging industry in New Delhi.

Packaging is one of the fastest growing industries and stands at US$ 700 billion globally.

Globally, Plastics comprise of 42% of packaging with the combination of rigid and flexible plastics in packaging.

It has grown higher than GDP in most of the countries. In developing country like India, it grew at a CAGR of 16 per cent in the last five years and touched ~US$ 32 billion in FY 15. The Indian packaging industry constitutes ~4 per cent of the global packaging industry. The per capita packaging consumption in India is quite low at 4.3 kgs, compared to countries like Germany and Taiwan where it is 42 kgs and 19 kgs respectively.

Overall, the Indian packaging industry is valued at over US$ 32 billion and offers employment to more than 10 lakh people across the country through ~10,000 firms approximately.

In the coming years it is expected to grow at 18 per cent per annum. wherein, the flexible packaging is expected to grow at 25 per cent per annum and rigid packaging to grow at 15 per cent annum. The overall packaging industry in India has a huge growth potential and is expected to reach ~US$ 73 billion in the year 2020.

In India, the industry is driven by key factors like rising population, increase in income levels and changing lifestyles. Growth prospects of end-user segments are leading to rise in the demand of the plastic packaging industry. The demand from rural sector for packaged products is being fuelled by the increasing media penetration through the means of Internet and television.

Out of 30,000 processing units, about 75 per cent are in the small-scale sector. The small-scale sector, however, accounts for only about 25 per cent of polymer consumption. The industry also consumes recycled plastic, which constitutes about 30 per cent of total consumption.

However, there are quite a few challenges and risks. High inflation rate and rising prices, lack of skilled workforce, difficulty in procuring raw material due to weak infrastructure, growing environmental concern, effective recycling of mixed plastic waste and plastic recovery are some of the issues plaguing the industry.

Going ahead recycling and reuse of plastics will be an important step towards fostering innovation and sustainability. Also increased awareness through help of industry groups and the Government could help successfully address some of these challenges.

As plastics possess versatile properties it can help us do more with less. One such property is light weight. As plastics are light in weight, they have a high product to package ratio which results in lighter weighed end product. For example: Only 1.5 pounds of flexible plastics can deliver ~60 pounds of beverage; compared to three pounds of aluminium or 50 pounds of glass.

Thus, plastic packaging enables in shipping more products with less packaging material. And also brings down the fuel consumption and the overall transportation cost.

Besides this, plastics can be reused and recycled. They have low energy requirements during production, hence considered to be energy efficient. They consume ~25 percent less energy in production compared to other alternatives. They result in lower emission of CO2 gas. Thus when compared to glass or aluminium plastics results in lighter environmental footprint.

India is a growing market for plastics and consumes about 12.8 Million Metric Tonnes (MMT) of plastics annually against global consumption of 285 MMT per year. The plastics and polymer consumption isgrowing at an average rate of 10 per cent . About 30,000 processing units with 113,000 processing machines have created manufacturing capacity of 30 MMT per annum in India. This has been achieved with a 13% CAGR of processing capacity during last 5 years. The industry has invested $5 billion in the machinery and it is expected to make further investment of $10 billion for further increase in capacities during the next 5 years.

While the usage and benefits of plastics are manifold, it invariably gets branded as a polluting material. The facts or myth regarding the polluting characteristic of plastic are needed to be addressed in a scientific manner. Plastics are chemically inert substances and they do not cause either environmental or health hazards. If plastics can be collected and disposed off or recycled as per laid down guidelines/rules then the issue of plastic waste can be suitably addressed. In fact there is wide scope for industries based on re-cycling of plastics waste.

Further, India is emerging as the most favoured destination for organized retail destination in the world. And also the presence of e-commerce is expanding rapidly and is bringing around a revolution in the retail industry. Retailers are now leveraging digital retail channels thereby enabling wider reach out to customers with less amount of money spent on real estate.

Therefore, organized retail and boom in e-commerce offers huge potential for future growth of retailing in India which in turn is pushing the growth of packaging sector.

Private banks` advances to grow at 24% CAGR between fiscals 2016-2019

Thesynegyonline Economics Bureau

NEW DELHI, JANUARY 19 :
Advances of private banks in India are likely to grow at a compounded annual growth rate (CAGR) of 24 per cent between fiscals 2016 and 2019, materially ahead of 12 per cent for public sector banks (PSBs) over the same period, noted a recent ASSOCHAM-Crisil joint study.

"Private banks are expected to play an increasing role in banking sector's growth over the medium term, given their strong balance sheet, large presence in retail segment and strong, low-cost liability franchise," highlighted the study titled 'Indian banking sector: The changing landscape,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with rating agency Crisil.

Credit growth of banking sector which remained muted at around eight per cent in first half of current fiscal, is expected to remain subdued at about 11 per cent in current fiscal as credit demand from corporate sector remains muted, it noted.

"Near term growth will be driven by sectors like retail, agriculture, small and medium enterprises segments in private banks' advances," said the ASSOCHAM-Crisil study. "Private banks have developed an expertise and can offer quick end-to-end solutions to customers in these segments as they have invested significantly in developing branch network, retail franchise and technology platforms."

Political will to undertake big-ticket reforms, and improvement in capacity utilisation, signalling an uptick in demand, will be key drivers for corporate investments in near term, it added.

PSBs will be forced to focus on re-orienting their business model and become more competitive and will need to increase focus on improving their performance (asset quality and profitability) instead of chasing growth, improving governance and building better customer connect, asserted the study.

Mid-size to small PSBs will face greater challenges and will need to develop regional expertise and focus on smaller ticket lending in retail and SME segments.

"PSBs will face strong competition from private banks in the low yield segments like mortgage, auto and from non-banking finance companies (NBFCs) in the high yield segments like loan against property, used vehicles, personal loan, gold loan and others," it said.

Banking in India is dominated by PSBs that account for about 74 per cent of total advances, while private sector accounts for 22 per cent and foreign banks for the rest, however, share of private banks has increased from about 18 per cent during the course of past five years.

Private banks have grown at a CAGR of 20 per cent between fiscals 2010-2015 compared to 16 per cent CAGR clocked by PSBs. Within private banks, growth is driven by new private banks, whose advances grew by 21 per cent CAGR over fiscals 2010 and 2015 compared with 17 per cent by old private regional banks.

'Through the English appropriation of the French ambience and the related amientae of Italian , I found ambient defined in English as the character and atmosphere of a place.'

Need to create appropriate ambience to promote entrepreneurship for achieving intended benefits,says President

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 16 : "The ambience of every environment in a country is the value system of the given nation. It is that culture that influences how citizens of a nation react, respond and behave among themselves in regards to politics, commerce, family and social life."

And so the President of India, Mr Pranab Mukherjee addressed a group of leading Silicon Valley CEOs, entrepreneurs, technologists and venture capitalists at Rashtrapati Bhavan on Friday (January 15, 2016) on the eve of the launch of "Start-Up India" initiative.

Speaking on the occasion, the President said that in the year 1600, India had a share of 22.5 percent of the world GDP. This declined to 12.3 percent in 1870 and further to 3 percent in 1950. Today, our GDP is only 2.6 percent of the world GDP. If we have to catch up with our past performance and eliminate poverty, we have to achieve high growth level of a minimum of 10 percent and sustain it over a period of more than 10 years. It is technology and entrepreneurship that will drive our country's production to optimum levels. The objective is to convert the young minds from being job seekers to job creators. The existing talent and resources are to be utilized to their optimal capacity.

The President said that we have people with great competence and talent but unless we create the appropriate ambience to promote entrepreneurship and risk-taking ability, we may not be able to achieve the intended benefits. Mere political freedom, if not backed by economic freedom, will not solve the problems of the country's vast multitude of people. He stated that there are chances that out of every 100 new enterprises, if 30 are bound to succeed; one has to be prepared that 60 may be bound to die and 10 would be in the grey area i.e. they may succeed or may not succeed.

The President said that as Visitor of 114 institutions of higher learning, he had in the last three years been repeatedly pointing out that not a single University figured in the top 200 institutions as per international rating agencies. He refused to believe that there was dearth of talent in the students, teachers, and institutions. He was happy to note that in 2015, two Indian institutions found place in the top 200. He expressed confidence that in the next two –three years many more institutions will figure in the top rankings.

During the interactions, the CEOs, entrepreneurs, technologists and venture capitalists stated that India is on the cusp of a Start-up revolution. They saw big hopes and tremendous potential in India and were willing to do their best to share and work to make India as successful as the Silicon Valley. They felt that entrepreneurial energy is the kind of energy required for economic progress and that it was crucial for India to adopt innovation. They stressed on the need for creating the right environment in India where entrepreneurship could be encouraged and there would be ease in doing business.

Among the entrepreneurs who participated in the interaction were Mr. Venktesh Shukla, president, TIE; Mr Suhas Patil, CEO, Cradle Technologies; Mr Krishna Yarlagadda, president, Imagination Technologies; Mr. Adil Adi, CEO, World Link; Mr Sarvajana Dwivedi, co- founder & CEO, Pearl Therapeutics; Mr Kanwal Rekhi, General Partner, Inventus Capital; Mr. Prakash Bhalerao, Venture Capitalist, Rainbow Enterprises; Mr. KB Chandrashekhar, Chairman & CEO, Jamcracker Inc; Mr. Vinod Dham, Founder, Indo-US Ventures; Mr Nimish Mehta, CEO, Lumen Data; Mr Prakash Iyer, vice president, Trimble Navigation , Mr Sarvajit Thakur, Chairman, Enterprise Solutions Inc., Mr Manu Rekhi, Venture Partner, Inventus Capital and Mr Raju Indukari, Chairman & CEO, Mtuity.

Media Realations Slideshow

SCOPE advocates better media
relations by public sectors

Thesynergyonline Economics Bureau

Mr. A.K. Bhattacharya, Editor, Business Standard, Dr. U.D. Choubey, Director General, SCOPE, Mr Sanjiv Singh, Director (Refineries), Indian Oil Corporation and Member of SCOPE Executive Board, and others at a one-day conclave on "Media Relations

NEW DELHI, JANUARY 15 :
"The best relationships in our lives are the best not because they have been the happiest ones, they are that way because they have stayed strong through the most tormentful of storms."
― Pandora Poikilos, Excuse Me, My Brains Have Stepped Out

And so Standing Conference of Public Enterprises (SCOPE) organized one-day conclave on "Media Relations" here which was attended by CEOs, Directors and Top Management of public sector enterprises. The inaugural session was addressed by Mr. A.K. Bhattacharya, Editor, Business Standard,

Dr U.D. Choubey, Director General, SCOPE, Mr. Sanjiv Singh, Director (Refineries), Indian Oil Corporation and Member of SCOPE Executive Board, and others.

Speaking on the occasion, Dr. U.D. Choubey, Director General, SCOPE highlighted the importance of media relations for successful enterprises and said that reputation and brand promotion by public sector enterprises could be the most important ingredient for taking competitive advantage over others.

Dr. Choubey advised that CEOs should make a dedicated group of persons under him to bring the corporate visibility at national and international level and also thwart negative publicity. It would be better if CEOs directly contribute to social media to share the achievements by the company so that the same could reach the people at large. This in turn will give a better brand at national/global level, he added.

Mr. Sanjiv Singh, Director (Refineries), IndianOil and Mr. A.K. Bhattacharya, Editor, Business Standard, appreciated efforts taken by SCOPE and highlighted the importance of media relations.

"Without a constant livelihood, there will be no constant heart."
- Ueda Akinari, Tales of Moonlight and Rain

Machine-made Chinese chikan threatening livelihood of 5 lakh embroidery workers in Lucknow: ASSOCHAM

Thesynergyonlie Economics Bureau

NEW DELHI, JANUARY 13: "If aliens ever visit us, I think the outcome would be much as when Christopher Columbus first landed in America, which didn't turn out very well for the Native Americans." - Stephen Hawking"

And centuries-old chikankari craft of Lucknow is facing strong competition from Chinese chikan which is up to 30 per cent cheap and consumes less time in production threatening livelihoods of about five lakh people involved in this unorganised industry, apex industry body ASSOCHAM said on Wednesday.

"Lack of awareness together with dearth of skilled manpower is affecting the growth of chikankari as only five per cent of total production is exported while the rest is sold in the domestic market," noted a sector specific analysis of Chikankari craft conducted by The Associated Chambers of Commerce and Industry of Industry of India (ASSOCHAM).

"Machine-made Chinese chikan is thriving as it can be produced faster as against the handcrafted embroidery where timely delivery of end product is a significant concern as most workers stay in villages around Lucknow," highlighted the analysis conducted by the ASSOCHAM Economic Research Bureau (AERB).

Less than even five per cent of chikan manufacturers in the city are into direct exports, it added.

"Chikankari industry is highly fragmented and has been facing significant challenges owing to insufficient market information on export trends, opportunities and prices, scarcity of raw materials, lack of adequate finance and growing competition from mill and factory made products," said Mr D.S. Rawat, secretary general of ASSOCHAM.

"There is a pressing need to create awareness about the chikankari craft and products through promotional methods like building brand image, conducting road shows and craft festivals in target countries and also point of sale publicity through attractive display and banners," said Mr Rawat.

"Besides, marketing tools like innovative and appealing packaging need to be extensively used," he added.

Government facilitation for creation of niche markets for chikan products, opening showrooms and warehouses in select countries according to their current market size, import values and others are certain key suggestions to improve exports of chikankari craft from India.

There is also a need for developing a mechanism to enable rural and semi-urban artisans to encourage them to become entrepreneurs and take advantage of emerging market opportunities.

"The Government in partnership with private sector needs to encourage integrated enterprise development by providing supporting services such as local centres for skill training, product adaptation, vocational training and entrepreneurship development," suggested ASSOCHAM.

Given demand pattern in international markets revolves around quality goods and high quantities, slow response from the supply side could be a limiting factor for exports of chikankari craft.

The Government should offer small, disadvantaged artisans and craft producers an access to global markets with complete support right from product development and manufacturing to export marketing.

Need for India,CLMV countries to promote greater connectivity , integration with regional value chains : Sitharaman

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 13 :
According to Mrs. Nirmala Sitharaman, Minister of State for Commerce & Industry (IC), Government of India "The trade links and ties between India and the CLMV countries can be much better, and the two governing principles, connectivity and economic integration with regional value chains are crucial."

The minister was delivering the keynote address at the 3rd India – CLMV Business Conclave being organized by the Confederation of Indian Industry (CII) in collaboration with the Ministry of Commerce and Industry, Government of India, at Chennai. The conference focused on the topic," India – CLMV Economic Integration: Developing Regional Value Chains."

"India's trade with the CLMV countries is over 11,000 million USD and there is immense potential." The tri-lateral highway, connectivity in the North East, port connectivity improvement and the Act East policy are moves in that direction. The External Affairs study proves that there's a huge potential of about 100billion USD dollars of additional export.

The Minister stated that there was a need for Indian banks to establish their branches overseas and the proposal of a Project development fund, an important instrument to handhold manufacturing units in the CLMV countries and duty free tariffs. While globally FDIs are falling, last year India had 38% growth in FDI, which shows the investors' confidence in India. She also added that with the world economy falling, it will depend on CMLV countries and India for revival.

Mr. Sun Chanthol, Senior Minister, Minister of Commerce, Kingdom of Cambodia said, "It's important to network and share best-practices and strengthen businesses ties between the countries. The trade investment between India and the ASEAN countries is crucial since the CLMV countries cover 32% of the ASEAN region and has a huge market for Indian products and with a 165 million strong population. This will attract considerable amount of FDI from India. It has an open investment regime and does not discriminate between foreign and local investors. It is investing heavily into its transport infrastructure."

Mr. Somchinth Inthamith, Vice Minister of Industry and Commerce, Lao PDR, said, " The investment between Laos and India is still insignificant. We are working on policy level changes in laws and regulations and open sky policies to facilitate trade. CLMV and India should work together to strengthen the strategic partnership to reduce the poverty. We are committed to make Laos a preferred destination."

Mr. Pwint San, Deputy Minister, Ministry of Commerce, Myanmar, said, "Myanmar is trying to improve the trade policies and create attractive and investor-friendly policies. A new foreign investment law has been passed to attract more investors and the mass investment potential lies in the economic partnerships."

"We are stepping up our stand in business collaborations and diplomatic cooperation between the CLMV countries and India. Knowledge sharing, simplifying laws and policies should be encouraged between countries to address commercial challenges."

Mr. Nguyen Cam Tu, Deputy Minister, Ministry of Industry and Trade, Vietnam, said, "We welcome India's economic integration with the CLMV countries. India and CLMV need to strengthen economic integration through connectivity, infrastructure, and trade facilitations.We also aim to focus on the added advantage from sectors such as seafood, manufacturing, engineering, automobiles and chemicals.

In his address, Mr. Ravi Capoor, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India stated that "The Ministry of Commerce has taken a huge step to launch the CLMV fund and is looking at large investments in these regions. We see problems in connectivity, banking, actual physical movement of people in trade and business collaborations. We are also looking at physical land connectivity to the CLMV countries through the North-East region."

Ms. Shobana Kamineni, Vice-President, CII, and Executive Vice Chairperson, Apollo Hospitals Enterprise Limited, said, "Every business has opportunities to thrive and it would be a threat if we do not make use of the opportunities as growth elements. CLMV countries have been going on a major transformation inward and outward. We should aim to follow best-practices to enhance productivity in Agriculture, mining and minerals, oil and gas, infrastructure, Service sector (manpower, training, skilled-resources), SMEs, and opportunities for smaller business to engage and grow.

Earlier in his welcome address, Mr. Chandrajit Banerjee, Director General,CII stated that "This conference comes at an opportune time, with a slew of reforms announced by the Government of India. I firmly believe that India needs to deepen the relationship with the CLMV countries in sectors such as agriculture, mining, healthcare, and energy (hydro and solar energy)." He added that through this trade and business expansion millions of job opportunities will be opened up.

Banks to use non-core assets for capitalisation as they brave stress : SBI chief

Thesynergyonline Economics Bureau

NEWDELHI, JANUARY 12:
Allaying concerns over inadequate capitalisation of banks reeling under the stressed assets, State Bank of India (SBI) Chairperson Ms Arundhati Bhattacharya today said her bank and several others in the public sector would divest non-core assets for meeting the funding requirement as per the Basel III norms.

Delivering the ASSOCHAM Foundation Day Lecture in New Delhi, Ms Bhattacharya said let people rest assured that the banks would be capitalised both by the government as also through generation of internal resources by sale of non-core assets.

She said as part of the ' Indradhanush ' package of Rs 1,80,000 crore, the government was to capitalise the PSU banks to the extent of Rs 70,000 crore while the balance of Rs 1,10,000 crore was to be raised by the individual banks through different means. At the SBI, the banks has indentified certain non-core asset and some unlisted entities which would be used for raising such resources for measuring up to Basel III norms.
The SBI chief also allayed apprehensions that the journey towards the global banking norms would raise the cost of borrowing.

Answering a question from an ASSOCHAM member over the kind of competition which may ensue with the entry of payment gateways, Ms Bhattacharya asserted, "we have no intention of vacating that space. We will (rather) leverage it to the hilt". She said the SBI with a legacy of 209 years has a kind of trust with the small and retail customers which the new payment gateways would not have. The country's largest bank is opening as many as 70,000 accounts per day through 54,000 Customer Service Points (CSPs) outside the bank branches, operated through channels like the fertiliser dealer or grocery stores.
These CSPs are now being equipped to sell banking, insurance and pension products by way of massive 25,000 training sessions.

Sharing a multi-pronged strategy to deal with the problem of stressed assets and non-performing assets, the SBI chief informed the ASSOCHAM members that her bank would, in about a year, would launch a platform along with the SIDBI and NSE for discounting of bills by traders. The initiative would not only help the traders but also help the bank to reduce the NPAs.

She put the blame for the NPAs on all the stakeholders- promoters, government, lenders and even the regulators. Ms Bhattacharya said promoters were bidding aggressively riding on the back of good times around 2007-08 and some of them were diverting funds out of the well-run units hoping the money flow would continue forever. On their part, the banks extended loans for long duration, as much as 30 years, while hoping the funds would be recovered in 10 years or so. The regulator is to blame for allowing such a dispensation while the government was to take the blame for policy uncertainty like cancellation of telecom licences.

On China, Ms Bhattacharya said the communist country has abundant reserves to capitalise the banks with a swift response.....so "China would not have a hard landing". The problems arose for China as after a scorching pace of growth the county is faced with negative inflows as it grapples with shifting from investment -led growth to consumption led pattern of expansion.

As for the government's financial inclusion programme like the PM Jan Dhan Yojna, she said with the help of unique programme like Aadhar, which is the world's largest biometric programme, the banks would have capture the transaction history of the beneficiaries and then accordingly design finance products for them .

In his address, ASSOCHAM president Mr Sunil Kanoria said, the growing level of NPAs in the Indian banking system is an area of concern. Gross NPAs of commercial banks stood at 5.1% in September 2015, while the restructured standard advances as a percentage of gross advances stood at 6.2% during the same period. The figures are even higher for the public sector banks (PSBs) which account for roughly 70% Indian banks' assets. Initiatives like the 5/25 scheme and strategic debt restructuring to tackle stressed assets and especially to help companies in infrastructure and core sector to tide over bad times.

Thus, despite the growing NPAs, the scenario is not all that alarming. In fact, about 58% of the impaired assets are due to stalled projects, thus that portion is very much recoverable. In addition, our banks remain well capitalized. RBI has kept the risk-weighted capital adequacy ratio for our banks at 9 per cent and aims to take this figure up to 10.5 per cent by 2019, whereas the figure as per Basel II standard is 8 per cent. Not a single PSB has capital adequacy ratio below 9%, in fact except for 4 PSBs, all have capital adequacy ratio higher than 10.5 per cent. Net, net, our banks are resilient and still enjoy space for maneuverability, and with corrective action the NPA problem can be mitigated. And now with a new Bankruptcy Code on the anvil, the banks will be better equipped to deal with stressed assets, said Mr. Kanoria.

During the last 2-3 years, use of technology has become integral to banking operations and technology is used for data analysis, understanding of credit needs of customers, customer interaction, etc and even helps banks to offer more focused products to customers. Thus, banking and technology are now inseparable.

This emerging technological landscape in the financial world according to me is the greatest opportunity and at the same time the biggest challenge. Players who will be able to successfully ride the technology curve will emerge winners, while those who will fail to do so will lose out. Some of the banks who have taken the lead in embracing technology are now being equated with 'technology players with banking license', added ASSOCHAM chief.

Others who also spoke during the conference were Mr. R N Dhoot, past president ASSOCHAM and Mr. D S Rawat, Secretary General ASSOCHAM.

This is the real secret

46,000 mw power projects at high risk: ASSOCHAM-CRISIL study

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 11 : The Associated Chamber of Commerce and Industry of India (ASSOCHAM)-CRISIL joint study has revealed that today about 46,000 mw of power projects are at high risk as these projects are not having any strong sponsor company support.

Banks and Financial Institutions (FIs) have together lent about Rs. 75,000 crore as on March 15, 2015 and these projects are not expected to turn viable in the long-run even if they are structured under the 5/25 scheme. It is rather apprehended that accretion of non-performing assets (NPAs) from these accounts could be high in the medium term.

Releasing the white paper on 'Infrastructure Financing', the chamber Secretary General Mr. D S Rawat said, the ground reality today is that 46,000 mw of capacities are at risk. Of this, nearly 36,000 mw are coal-based and about 10,000 mw, gas-based. Loans to these projects are pegged at around Rs. 2.1 lakh crore of which about two-thirds are lent by public sector banks.

The study has classified coal-based projects (76% of the Rs 2.1 lakh crore exposure) into three buckets of risk- offtake, fuel availability, and aggressive bidding. The risk is highest where lenders are exposed to projects that were bid so aggressively that there is a question mark over their viability. Gas-based projects (24% of the exposure), on the other hand, are weak due to lack of fuel availability.

The study believes nearly 20,000 mw of weak generation projects involving debt of Rs 1 lakh crore can benefit from the 5/25 scheme in the medium-term. Of this 15,000 mw are coal-based. Some of these were operating at sub-optimal PLFs because of inadequate feedstock, but coal supplies are improving now. They can further benefit from elongated loan tenures under the 5/25 scheme. Additionally, 5,000 mw of gas-based capacities, having been allocated subsidised RLNG in the recent round of auctions, will be able to service their interest obligations for the next two years.

Therefore, providing moratorium on principal repayment under 5/25 till such time domestic gas production improves can provide relief to these projects.

However, as per stipulation, for debt to be structured under the 5/25 scheme, banks will have to bring in an additional lender or ensure zero net present value loss. And the performance of projects, even after structuring, will be a monitorable.

There is a glimmer of hope for India's power sector if one were to go by the list of states that have agreed to participate in the UDAY (Ujjwal Discom Assurance Yojana) package announced by the Central government for the struggling state owned distribution companies (discoms). At last count, 7 states- Rajasthan, Jharkhand, AP, Punjab, J&K, Himachal Pradesh and Uttarkhand have joined UDAY. The first five states are also amongst the weakest and account for a significant portion of overall discom borrowings.

The study believes that the scheme has the potential to wipe out losses of discoms in Haryana, Andhra Pradesh and Telangana by fiscal 2018. For discoms in Tamil Nadu, Rajasthan, Uttar Pradesh and Jharkhand, losses will reduce, but total elimination can happen only by achieving milestones on operational inefficiencies lest they should regress to around into the debt trap. If the larger states adhere to their milestones by reducing AT&C losses to around 15 per cent by fiscal 2019 through efficiency improvements, UDAY could spawn a transformational change in India's power sector.

The discoms have been the weakest link in India's power sector. The all-India losses of discoms are estimated at Rs 70,000 crore for March 31, 2015. There are three reasons for this Poor operational inefficiencies because of high aggregate technical and commercial (AT&C) losses; Tariff hikes of the past not being reflective of the actual cost; and Huge interest burden because losses were being funded by debt. This had necessitated bailout by the Central government in the past because the discoms are financially fragile, they are wary of committing to long-term power purchase agreements. This has resulted in lower purchases by discoms, and has led to sub-optional plant load factors for generating companies, especially the newly commissioned projects.

Industry needn't worry about impact
of TPP: Sitharaman

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 11 :
"There is nothing to worry about the adverse impact of TPP (Trans-Pacific Partnership Agreement) on India. We have taken necessary steps to boost India's trade and investment in the wake of emerging new trade architecture", said Ms. Nirmala Sitharaman, Union Minister of State for Commerce & Industry. She was addressing industry members on "regionalism vs multilateralism: the future of global trade" at the 22nd edition of CII Partnership Summit being held at Vishakhapatnam in Andhra Pradesh.

Ms. Sitharaman also highlighted that the real implementation of TPP has a long way to go as till date not a single TPP member has got it passed through their Parliament. The TPP is a US-led trade agreement involving twelve Pacific Rim countries concerning a variety of matters of trade and economic policy, which was reached on 5 October 2015 after 7 years of negotiations. "There is nothing regional about TPP as countries are spread across different continents. This is an agreement involving a basket of countries", she further added.

The Union Commerce & Industry Minister re-iterated India's strong belief and commitment towards multilateral trading system, which transparent, equitable and supports consensus based decisions. In WTO each members irrespective of their size and socio-economic development has equal voting rights, which instills lot of confidence in them.

Ms. Sitharaman highlighted the strong performance of India in sourcing FDI. She stated that while globally FDI flows have fallen by 16%, FDI inflow into India has seen a sharp increase of 38% last year. This speaks about the inherent strength of Indian economy and shows the impact of steps being taken by the incumbent Government.

The session was also addressed by her counterparts from Bangladesh, Nepal, Sudan, Malawi and Kuwait. The Minister of Commerce of Bangladesh Mr. Tofail Ahmed said that how US and other developed nations are discriminating against Asian LDCs while granting Duty-Free Quota-Free Market access. The Commerce Minister of Nepal Mr. Deepak Bohara emphasized the importance of further boosting regional economic cooperation in South Asia.

Earlier, moderating the session, the President-Designate of CII Dr. Naushad Forbes called for adopting a more inclusive approach in regional trading arrangements, particularly for mega-FTAs. The session was also addressed by Mr. Shishir Priyadarshi, Director, Development Division, World Trade Organization. He said that the debate over multilateralism vs regionalism is no more relevant as in the current scenario both are going to stay. The challenge is how to make it a win-win situation for the large group of countries including small economies and LDCs. Great Leaders Inspire Everyone to Take Action

Luxury Market Slideshow

"Luxury is the ease of a t-shirt in a very expensive dress."
- Karl Lagerfeld 

Indian luxury market to cross
$18.3 bln by 2016 : Paper

Thesynergyonline Econoics Bureau

NEW DELHI, JANUARY 07 :
"Every state of society is as luxurious as it can be. Men always take the best they can get. " - Samuel Johnson

And so with increasing brand awareness amongst the Indian youth and purchasing power of the upper class in tier II and III cities, Indian luxury market is expected to cross $18.3 billion by 2016 from the current level of $14.7 billion growing with a compound annual growth rate (CAGR) of about 25%, reveals the ASSOCHAM study.

"What they liked in things they called luxury was only the money behind them; they loved wealth before they loved life." - Georges Perec, Things: A Story of the Sixties; A Man Asleep

The factors that have fuelled the luxury industry's growth are the rise in disposable income, brand awareness amongst the youth and purchasing power of the upper class in Tier II & III cities in India, said Mr. D S Rawat, Secretary General ASSOCHAM.

The sectors such as five star hotels and fine-dining, electronic gadgets, luxury personal care, and jewellery performed well in the year of 2015 and are expected to grow by 30-35 per cent over the next three years. Big ticket spends such as on luxury cars mainly SUV are likely to continue, growing upwards of 18-20 per cent over the next three years, driven by consumption in smaller towns and cities.

With the luxury market expected to grow at over 25% year on year, Private Equity investments (PE) in the luxury segment are expected to increase and support the enhanced size of the Indian luxury market.

The chamber paper segregated the luxury sector into products: apparel and accessories, pens, home décor, watches, wines & spirits and jewellery, services: spas, concierge service, travel & tourism, fine dining and hotels and assets: yachts, fine art, automobiles.

The high internet penetration across tier-II and tier-III cities along with high disposable income shall lead to approx. 100 mn transactions on the Internet by 2020. As a result, the luxury consumption is going to increase manifold in the country, highlighted the study.

The size of the High Income group (HIG) consumers continue to enlarge and spend over 40% of their monthly income on some of the world's largest luxury brands whereas the middle income group (MIG) consumers spend 8-10 per cent of income on luxury products , reveals the ASSOCHAM latest survey. Globally too consumer spending is on a rise, expected to reach USD 40 trillion by 2020 with an unprecedented growth of US$ 12 trillion in a decade, adds the report.

"Luxury jewellery, electronics, SUV cars and fine dining have grown beyond expectations, while apparel, accessories, wines and spirits have continued their strong growth in 2016, according to the ASSOCHAM assessment. Consumption of branded wine is also likely to register over 30% increase in the metro cities.

Some of the significant players across various verticals who performed well in 2015 included – GUCCI, Christian Dior, Louis Vuitton, Ocean Style Yachting, Canali India, L'Oreal Luxe India, LVMH India, Judith Leiber, The Phenix Mills, The SPA Group, Geetanjali Group, The Bauers, Starwood Asia Pacific Hotels & Resorts, Da Milano Leathers, Reliance Brands, Hidesign and others.

The aspiration and disposable income of consumers in India is on the rise, the purchasing power of women has improved, and men are fast emerging as a separate consumer category. As per the estimate, luxury beauty products market has been growing at average 28% over the last three years.

The survey was conducted in major places like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabd, Pune, Chandigarh, Dehradun etc. A little over 250 employee were selected from each city on an average. In 2015, Delhi ranks first in spending most on luxury brands followed by Mumbai (2nd), Ahmedabad (3rd) Pune (4th) and Bangalore (5th).

Around 55 per cent of the survey respondents fall under the age bracket of 20-29 years, followed by 30-39 years (26 per cent), 40-49 years (16 per cent), 50-59 years (2 per cent) and 60-65 years.

Mr. Rawat further said that the slowdown in the economy has not affected the spending patterns of high income group (HIG), with many of them stating that maintaining their lifestyle is an extremely important facet of their social life. "Throwing lavish parties such as business success, wedding or launch parties has become a new area of spending", reveals the survey.

According to survey majority of women tend to make purchasing decisions around cosmetics, perfumes, spa treatments, clothes, footwear, bags and jewelry. Men on the other hand mostly decide on purchases related to alcohol, watches and automobiles, mentioned the ASSOCHAM survey.

A majority of survey respondents said they purchase luxury items during overseas trips, with cosmetics, watches, bag, and perfumes etc. Nearly 85% of potential consumers search for luxury brands on the internet at least once a month. There are also increasing signs of changing consumption patterns in major cities.

The demand for luxury goods in metros are booming as incomes continue to rise. The survey also reveals the role of digital media and the extent to which it is being used as a tool to engage high-end consumers. Indian Luxury market is poised to expand five fold in next three years and the number of millionaires expected to multiply three times in another five years.

Many of the major luxury brands are continuing with their current investments, despite the ongoing global economic slowdown, women are an important target market for luxury players, as their purchasing power rises and start to seek a wider range of products, adds the survey.

Over 69% of survey respondents said they prefer to purchase well known luxury brands, whilst 65 percent separately indicated they would pay a premium for well-known, popular luxury brands.

Finally, "The idea of luxury, even the word "luxury," was important to Arabella. Luxury meant something that was by definition overpriced, but was so nice, so lovely, in itself that you did not mind, in fact was so lovely that the expensiveness became part of the point, part of the distinction between the people who could not afford a thing and the select few who not only could, but also understood the desirability of paying so much for it. Arabella knew that there were thoughtlessly rich people who could afford everything; she didn't see herself as one of them but instead as one of an elite who both knew what money meant and could afford the things they wanted; and the knowledge of what money meant gave the drama of high prices a special piquancy. She loved expensive things because she knew what their expensiveness meant. She had a complete understanding of the signifiers." - John Lanchester, Capital

Pakistan must be encouraged to develop "vested" economic interest in India for lasting peace 

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 05 :
Without getting bogged down by the terrorist attack on Pathankot Airbase, India must remain engaged with Pakistan to the extent that the Pakistan economy develops a 'vested' interest in the Indian economy which would then mean heavy economic costs for brazen militant attacks, ASSOCHAM said on Tuesday.

Expressing a great sense of shock and grief at the loss of lives at Pathankot where the Indian security forces have foiled the nefarious designs of forces in Pakistan, ASSOCHAM President Mr Sunil Kanoria said, "at times, the instrumentalities of economic costs work quite well. But since the commercial engagement between India and Pakistan have remained so low that there is no option for any such recourse".

India's total trade with Pakistan in fiscal 2014-15 was less than USD 2.5 billion with balance of trade loaded heavily in favour of New Delhi. Against exports of USD 1.85 billion, imports from Pakistan were less than USD half a billion, meaning thereby that "Pakistan does not depend on India , either for seeking markets for its exports , nor meeting its crucial requirements of imports. So , there is no possibility of any economic costs which can be inflicted on them in situations like this".

The ASSOCHAM President said while the basic principle of building commercial relations cannot be to inflict economic costs on the trading partner at a later stage, "a deep and well-entrenched commercial relation have dissuaded countries from taking extreme steps. To that extent, the economic ties have been used for strategic purposes as well".

While Sri Lanka, Bangladesh and Nepal remain the top commercial partners for India in South Asia, the total size of the engagement in the region is far less than the desired level. "Here too, a vast Indian market has not been really converted into a strategic resource for the partners in south Asia since India's total imports from South Asia are less than USD three billion, against exports of USD 20 billion". ASSOCHAM said, India needs to be using its vast market for the South Asian partners a "strategic resource" for them by giving them liberal access and even hand holding them.

While Pakistan aspires to be among the 25th top economies of the world, according to a World Bank report, the country is getting a least amount of foreign direct investment. While the World Bank has listed factors such as lack of ease of doing business, "the geo-political reasons with a negative bias have also played a role", the ASSOCHAM said.

FM : To make health and social security benefits accessible to unorganised sector workers major priority

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 05 :
The Union Finance Minister Mr Arun Jaitley said that the making social security schemes accessible to unorganised sector workers is a major challenge, which the Government is keen to address at this juncture where the unorganised sector is growing at a faster pace.

He said that to make health and social security benefits accessible to un-organised sector workers like construction workers, migrant labourers, volunteers of different schemes like Anganwadi workers etc are one of the major priorities of the present Government. Mechanisms can be thought of wherein social security benefit contributions to workers can be made by employers at a single window for all workers. The Finance Minister Shri Jaitley was speaking during his second Pre -Budget Consultative Meeting with the representatives of different Trade Union Groups here on Monday.

The Finance Minister Shri Jaitley said that the present framework of social security is structured for different groupings –organized, unorganized and those not employed/BPL, which are functional requirements. He said that there is a need to ensure a convergence of benefits for all these groupings, above a minimum threshold.

Mr Jaitley further said that for employment generation, the Government has taken many intiatives like Make in India, Skill India, Mudra Yojana and National Career Service Portal. He said that around 9.63 lakh organizations have registered on National Career Service portal and 2.09 crore persons have also registered for employment on the same. Along with skill development, identifying labour-intensive industries and new areas where jobs can be created like renewable energy and reusable resources etc. and providing employment linked training can be some of the ways to capitalise on the demographic dividend, the Finance Minister added.

Along with the Finance Minister Shri Jaitley,the Pre-Budget Consultative Meeting with the representatives of Trade Union Groups was also attended among others by Mr Jayant Sinha, Minister of State for Finance, Mr R.N. Watal, Finance Secretary, Mr Shaktikanta Das, Secretary, DEA, Dr. Hasmukh Adhia, Revenue Secretary and Dr Arvind Subramanian, Chief Economic Adviser (CEA).

The representatives of various Trade Union Groups who attended the  meeting include among others Mr Vrijesh Upadhyay (BMS),Mr Rajender Prasad Singh (INTUC),Mr A.L.Sachdev (AITUC), Mr Harbhajan Singh Sidhu (HMS), Mr Tapan Sen, (CITU), Mr Sankar Saha (AIUTUC), Mr S.P. Tiwary (TUCC), Mrs. Jyotiben Macwan (SEWA), Shri Rajiv Dimri (AICCTU), Mr L.Rashid Khan (LPF), Mr Deeepak Jaiswal (NFITU) and Mr Ashok Ghosh (UTUC).

Most of the Trade Union representative gave a joint memorandum to the Finance Minister containing suggestions for the forthcoming Union Budget 2016-17.Various suggestions were made by the representatives of Trade Union Groups.

The major suggestions include that next Budget should be people oriented budget and help in creation of more jobs/employment opportunities including opening of the Government sector for the employment opportunities. It was suggested to increase the minimum wage to Rs.15,000 especially after the 7th Pay Commission recommended lowest scale starting from Rs. 18,000. Other suggestions include need for taking effective and timely measures to keep prices especially of food items under control, strengthening of social security schemes for the workers especially those working in un-organised sector, extension of National Pension System(NPS) to the workers of un-organised sector.

Many other suggestions include need for over hauling of tax structure, and minimum tax exemption limit be raised to Rs. 5.00 lakh in case of employees. creation of a separate Social Sector Affairs Department coordinating different ministries and experts and to include representative of such sectors so that the benefits reach directly to the real beneficiaries.

Other suggestions include minimizing the administrative cost upto 5% of total allocation. It was suggested that growth may be related to the wage of workers and hence a ‘wage-led growth’ has to be brought in. Increase in wages would lead to increase in purchasing power of the people which in turn will strengthen the market and the economy.

It was suggested that allocation to education sector be raised to 6% and health allocation be raised to 3 per cent (from present 1 per cent) of the total budget. It was suggested that un-organised sector required a comprehensive decent work agenda which includes reasonable/decent wages, work conditions, social security, welfare, safety, gender justice and job security among others.

It was suggested to open a ‘Worker’s Bank’ for general interest of workers. It was suggested that there is need for amendment of Contractual Labour Act and same wages be given for same work for those working on contractual basis. Anti-dumping measures especially in metal sector have to taken-up on utmost priority to save the domestic industry from irreparable loss and ultimate closure. There should be no ceiling on bonus and no FDI be allowed in crucial sectors such as railways & defence and no disinvestment of profit making PSUs be made among others.

Govt intends to integrate science and technology into choices that it makes and strategies that it pursues: PM

Thesynergyonline EconomicsBureau

 

NEW DELHI, JANUARY 03 : Prime Minister Mr Narendra Modi, has emphasized the need to bridge the gap between Science and indigenous growth aspirations. He was speaking to the gathering of Nobel Laureates, Scientists and delegates across the world at the Inauguration of 103rd Indian Science Congress at the Mysore University on Sunday.

He stressed that innovation in approach is not just the obligation of the government, but also the responsibility of the private sector and the academia. It was the time of a new awakening in India which sought not just freedom, but also human advancement in India.

He drew the attention of the delegates towards the one of the biggest challenges for the world, and one that dominated global attention last year which is to define a path to a more prosperous future for our world and a more sustainable future for our planet. We were consistent in our message that it is not enough to speak of targets and restraints but it is essential to find solutions that help us easy transition to a future of clean energy said the Prime Minister. For this, he stressed on 3 A's available, accessible and affordable for all.

Prime minister suggested for the network of 30-40 universities and labs focusing for next ten years on transforming the way we produce, distribute and consume energy which he said he will also pursue in G 20. This is especially critical for India to achieve target of adding 175 GW of renewable generation by 2022. He called to employ fossil fuel for more efficient use and tap newer sources of renewable energy like ocean waves to geo thermal. Shri Modi said that that Government intends to integrate science and technology into choices that it makes and strategies that it pursues.

Calling the present century as 'Urban Century', as by the middle of this century two thirds of world's population would live in the cities, he said that studies suggest that nearly 40% of the global urban population lives in informal settlements, or slums, where they face a range of health and nutritional challenges. That is why I have placed so much emphasis on smart cities, the Prime Minister added.

He called upon the scientists to be concerned of what he called as Five E s at the centre of their enquiry and engineering: Economy, Environment, Energy, Empathy and Equity.

This year marks a hundred years of a significant moment in the history of science, when Albert Einstein published in 1916 "The Foundation of the General Theory of Relativity". Today, we must recall the humanism that defined his thought: "Concern for man himself and his fate must always form the chief interest of all technical endeavors. "

He called upon everyone whether we are in public life, or we are private citizens, and whether we are in business or explore science to leave the planet in a better state for our future generations. Let the different disciplines of science, technology and engineering unite behind this common purpose.

The Union Minister for Science and Technology and Earth Sciences Dr. Harsha Vardhan has said that India has made substantial progress in the field of science and technology and we only have to endeavour to take fruits of such progress to the people. Speaking at the inaugural ceremony of the 103rd Indian Science Congress at Mysore he said that India need not look towards western world for its scientific requirements. He said India made substantial progress in the fields of biotechnology, nanotechnology and in space sector.

The Minister while pointing out that a substantial progress has been made in the field of vaccination development said that rotavirus vaccine has been developed in the country at a fraction of the cost as it is now available in the international market. He also said that a cheaper medicine for diabetics - BGR-34 is also to be launched through technology transfer from the CSIR labs.

The Governor of Karnataka, Mri Vajubhai Rudabhai Vala, Chief Minister of Karnataka, Mr Siddaramaiah, the Union Minister of Science and Technology and Earth Sciences Dr. Harsh Vardhan, the Union Minister of State for Science and Technology and Earth Sciences, Mr. Y.S. Chowdary, General President Indian Science Congress Association Dr. Ashok Kumar Saxena, and Vice – Chancellor of the Mysore University and Organizing Chairman of the Science Congress Prof. K.S. Rangappa, Bharat Ratna Dr.C.N.R.Rao the Union Minister for Chemicals and Fertilisers Mr Anantha Kumar, the Union Minister of Law and Justice Shri D.V.Sadananda Gowda, the Union Minister of State for Heavy Industries and Public Enterprises, Mr G.M.Siddeswara, nobel laureates were among several luminaries who attended the inaugural ceremony of the Science Congress to be held from 3rd to 7th January, 2016.

Later delivering the Bharat Ratna Sir M.Visvesvaraya lecture on 'Doing Science in India' Bharat Ratna Dr.C.N.R.Rao called upon the scientists to work with passion. Speaking upon importance of time Prof. Rao went back to PM Modi's speech where he spoke of India in 2030. Prof. Rao said that, the preparation should begin soon and the works should be done. If we do not understand the value of time, we will never be serious about our works. We have to work in a hurry. If we do that, we will be in the top of the world in next 10-15 years.

 

"If ethics is not the engine of success, in the train of growth, it sure is a guard, with a flag, which may be green, or at times red" 

FM exhorts IRS young officers to maintain absolute standards of ethics

Thesynergyonline Economics Bureau

NEW DELHI, JANUARY 02 :
"Every skill and every inquiry, and similarly every action and rational choice, is thought to aim at some good; and so the good had been aptly described as that at which everything aims." - Aristotle

And so the Union Minister of Finance Corporate Affairs and Information Broadcasting Mr Arun Jaitley asked the young Officer Trainees (OTs) of the 67th Batch of Officer Trainees (OTs) of the Indian Revenue Service (Customs & Central Excise) to emulate the Gandhian principle that even in moments of struggle, they should be in a position to maintain the position of ethics and morality on their side.

He said that even when facing pulls and pressures, they must never forget to go straight. The Finance Minister told the officer trainees that if they maintain absolute standards of ethics and 100 per cent integrity, they would definitely go a long way. All this was to be accompanied with professional competence and a judicious and fair approach in tax collection, he added.

Mr Jaitley was addressing the 67th Batch of Officer Trainees (OTs) of the Indian Revenue Service (Customs & Central Excise) here today. The function was attended among others by the Chairman, CBEC Shri Najib Shah, Shri Ram Tirath, Shri P.K.Bansal,and Ms Ananya Ray, all Members, CBEC and other senior officers of the Ministry of Finance and CBEC.

He further said that the taxation should not be a painful process for the people. Ideally, the Minister said that the Government should collection taxes like a honeybee, which sucks just the right amount of honey from the flower so that both can survive,.

Mr Jaitley also mentioned that the starting point of any activity is investment and the purpose of investment is to yield profitability. And in this process, he said that the investors work out the element of taxability and this tax content which is generated as revenue is used for infrastructure and for fulfilling the social responsibilities of the State as well as to yield more economic activity.
And for this, the Finance Minister in his address to the OTs indicated the road map for the future. He wanted them to retain the idealism which they inculcated at the time of joining the service to be retained with the same enthusiasm at the time when they are retiring from Service. For this, the Finance Minister said that they need to have the basic cardinal principle of striving for excellence.

Earlier, the Officer Trainees (OTs) of 67th Batch qualified the Civil Service Exam 2014 have joined the Indian Revenue Service (Customs & Central Excise Service) on 28th Dec 2015. 190 officer trainees have reported for training including 25 officers of the earlier batch who had availed of extra ordinary leave. There are also five customs officers from the Royal Govt. of Bhutan who are training with this Batch. The educational qualifications of the OTs varies from engineering degrees to doctors to post graduate degree holders and graduates in the field of humanities science and commerce besides management and law graduates and a Ph D. The batch is truly representative of the States of India covering Jammu and Kashmir to Tamil Nadu and Gujarat to Manipur and Nagaland. The largest representation come from the state of Rajasthan followed by Uttar Pradesh, Bihar and Maharashtra. Their age profile varies from 24 years to 35 years.

Their training includes class room training in Customs, Central Excise, Service Tax and Narcotics besides Public Finance and Policy, Foreign Trade Policy, International Conventions, Administrative Law and other related laws including those relating to protection of the environment, heritage of India, national security etc. Besides they are exposed to on the job training in the various field formations of Customs, Excise and Service Tax and also training with para military forces, like BSF, ITBP, Coast Guard, Indian Navy to learn the finer aspects of Border Management and National Security. They are also sent to a leading university abroad for a week's training on leadership and public policy and to acquaint with international best practices.

. "Time, of course, topples everyone in its path equally- the way that driver beats his old horse until it dies. But the thrashing we receive is one of frightful gentleness. Few of us even realize that we are being beaten."

M'ashtra topples Gujarat to become most attractive investment destination: Study

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 30 :
"Great meals rarely start at points that all look like beginnings. They usually pick up where something else leaves off. This is how most of the best things are made - imagine if the world had to begin from scratch each dawn: a tree would never grow, nor would we ever get to see the etchings of gentle rings on a clamshell... Meals' ingredients must be allowed to topple into one another like dominos. Broccoli stems, their florets perfectly boiled in salty water, must be simmered with olive oil and eaten with shaved Parmesan on toast; their leftover cooking liquid kept for the base for soup, studded with other vegetables, drizzled with good olive oil, with the rind of the Parmesan added for heartiness. This continuity is the heart and soul of cooking."
Author: Tamar Adler

And so Maharashtra has toppled Gujarat as the most sought after destination for global and domestic investors as the latter recorded least growth rate of just over two per cent amid top 21 states across India during the course of past five years, revealed a recently concluded study by apex industry body ASSOCHAM.

"Maharashtra, Gujarat and Odisha have emerged as most lucrative investment destinations as they together account for over one-fourth share (26.6 per cent) in the total outstanding investments worth over Rs 154 lakh crore attracted by various sectors from both public and private sources across major 21 states in India as on December 2014 which grew from Rs 105 lakh crore as on December 2009," noted the study titled 'A Comparative Analysis of Investment Pattern in States,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"With a share of about 10 per cent, Maharashtra has ranked on top attracting investments worth over Rs 15 lakh crore as on December 2014 closely followed by Gujarat (9.2 per cent share), while Odisha (7.5 per cent), Karnataka (6.8 per cent) and Tamil Nadu (6.5 per cent) are other states with significant share in this regard," highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).

"Investment is the key driver of productivity and sustainability that leads to development and growth making most state governments to strive to better the investment climate prevailing in their respective states to make them conducive to attract domestic and foreign investors," said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber's study.

With investments worth over Rs 84.5 lakh crore, private sector accounted for almost 55 per cent share in total investments attracted by major 21 states across India. While investments attracted from public sector grew at a compounded annual growth rate (CAGR) of just over 11 per cent, those from private sector grew at just about five per cent during the five year period of December 2009-December 2014.

Private sector accounted for highest share of over 81 per cent in the total outstanding investments attracted by Haryana. While in Gujarat private sector accounted for 74 per cent share in total investments attracted by the state as on December 2014.

Infrastructure sector accounted for lion's share of 64 per cent in terms of total investments made by public and private sectors (both foreign and domestic) across India followed by manufacturing (20 per cent), construction (9.5 per cent), mining (3.5 per cent) and irrigation (three per cent).

Similarly in Gujarat, infrastructure accounted for highest share of 57 per cent in total investments attracted by the western state followed by manufacturing (25 per cent), construction (13 per cent), mining (three per cent) and irrigation (two per cent) as on December 2014.

With a share of 11.5 per cent and 10 per cent, Gujarat had attracted third highest share in investments attracted by manufacturing and construction & real estate sector across India, while the state attracted fourth highest share of about eight per cent share in infrastructure sector investments.

Interestingly, share of manufacturing sector had increased by five per cent in the total investments attracted by Gujarat as on December 2009 (20 per cent). While the share of infrastructure and mining both had increased by about two per cent respectively, the share of construction and irrigation sectors had declined by six per cent and three per cent respectively, highlighted the ASSOCHAM study.

Projects with investments worth over Rs 86.5 lakh crore i.e. over 56 per cent of the total investments were under implementation or remained non-starter as on December 2014 and private sector accounted for major share (51.5 per cent) in this regard.

Maharashtra had maximum share of over 10 per cent in projects under implementation followed by Karnataka (7.4 per cent), Gujarat (7.4 per cent), Odisha (seven per cent) and Tamil Nadu (6.5 per cent).

Public sector accounted for 56 per cent share in projects that remained non-starter in Gujarat as on December 2014 which had increased from 50 per cent in 2009.

Long delays in implementation of investment projects hurts the sentiment of investors and also results in incurring of huge costs as such the government needs to have a strong plan and must prioritize cleaning up delayed projects in the form of effective implementation which would only be possible through an appropriate, target-oriented roadmap for both the clearance authority and the investors, suggested the ASSOCHAM study.

"The government needs to limit the time frame for each clearance authority and if they are unable to meet the deadline, they should be penalized," the report said.

Inappropriate planning, change of ownership, lack of finance, lack of co-ordinance with the contractors and others have also resulted in delay in implementation which calls for strict monitoring of such activities in an appropriate manner, it added.

Growth in manufacturing to
slow down in Q3 

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 30 :
The outlook for Indian manufacturing sector in the third quarter of 2015-16 looks to be weakening, as lesser percentage of respondents expect high growth to continue in Q3 (October-December 2015-16). The percentage of respondents expecting higher growth in Q3 has gone down to 55 per cent as compared to 63 per cent for Q2 (July-September 2015-16), according to the survey.

The survey had earlier indicated revival in the manufacturing activity in Q2 of 2015-16, which seems to be slowing down little bit in Q-3 now. The outlook on the basis of FICCI Manufacturing Survey for Q2 of 2015-16 was more optimistic than in the current quarter. Exports are primarily responsible for this less optimistic outlook besides domestic factors like poor demand conditions, high interest cost etc. FICCI's latest quarterly survey gauges the expectations of manufacturers for Q3 (OctoberDecember, 2015-16) for 12 major sectors namely textiles, capital goods, metals, chemicals, cement and ceramics, electronics, auto, leather & footwear, machine tools, food, tyre, and textiles machinery.

Responses have been drawn from 336 manufacturing units from both large and SME segments with a combined annual turnover of over ₹3.94 lac crore (₹3.94 trillion). In terms of order books, 44% respondents have reported higher order books for the quarter October-December 2015-16 which is almost the same as that of previous quarter, indicating a muted demand conditions, FICCI survey noted.

Export outlook for manufacturing followed its trajectory downwards in Q3 2015-16. The proportion of respondents expecting higher exports in Q3 2015-16 is 24 per cent as compared to 36 per cent in Q2 2015-16 and 33 per cent in Q1 2015-16. Though, the proportion of respondents expecting lower exports has also gone down from 43% in Q-2 of 2015-16 to 37% in Q-3 of 2015-16, but the scenario remains bleak as percentage of respondents expecting no change in their export level has also increased.

In terms of investment, for Q3 2015-16, 68 per cent respondents as against 73-75 per cent respondents in earlier quarters reported that they don't have any plans for capacity additions for the next six monthsimplying slack in the private sector investments in manufacturing to continue, even though there is a fall in the percentage of respondents not looking at fresh investments. Poor
demand conditions, high cost of borrowing, delayed clearances and cost escalation are some of the major constraints which are still affecting the expansion plans of the respondents.

However, the current average capacity utilization as reported in the survey is around 73 for Q2 which is less than the capacity utilizations indicated in the previous two surveys i.e. Q4 2014- 15 and Q-3 2014-15 when it was around 77 per cent.In some sectors, average capacity utilization has almost remained same in Q-2 of 2015-16 as was in Q-4 of 2014-15. These are sectors like auto, textiles and tyres. On the other hand, capacity utilization has improved in cement, food, capital goods and leather &footwear sector.

Inventory levels reflect poor demand conditions both in the economy and exports vis-à-vis last quarter as currently around 32 per cent respondents reported that they are carrying more than their average inventory levels of finished goods as compared to 30 per cent in earlier quarters. Another
56 per cent are maintaining their average inventory levels which is slightly lower as compared to 59 per cent of earlier quarter.

Hiring outlook seems pessimistic in coming months as around 76 per cent respondents are not likely to hire additional workforce in next three months. On a broader scale, this proportion is slightly less than that of previous quarter (79%) but still remains too high to consider it as any
Improvement .

Interest rate paid by the manufacturers ranges from 8 per cent to 18 per cent as per the survey with average interest rate at around 11.8 per cent per annum. 49 per cent respondents reported availing credit at over 12 per cent interest rates.

Based on expectations in different sectors, the Survey pointed out that ten out of twelve sectors were likely to witness low to moderate growth (less than 10 per cent). Two sectors namely, capital goods and auto are likely to witness strong growth of over 10 per cent in Q3 2015-16.

The cost of production as a percentage of sales for product for manufacturers in the survey has increased vis-à-vis last year as over 50 per cent respondents reported so. The primary reasons for this increased cost were devaluation in rupee and higher wage cost.

 

"The desire for safety stands against every great and noble enterprise."
― Tacitus

 

Along with automobiles, construction industry faces policy risks on account of city pollution: ASSOCHAM Study

Thesynergyonline Ecoomics Bureau

NEW DELHI, DECEMBER 29 : "Risk is the stuff that sucks the predictability right out of the very things that we desperately wish were predictable." - Craig D. Lounsbrough

And with fast deteriorating air quality in big cities like Delhi -NCR leading to tougher regulatory norms such as the odd-even policy for private cars, the high stake construction industry along with the automobile sector should be prepared to deal with possible public outrage and must devise ways for meeting such challenges, an ASSOCHAM Paper has noted.

"Risk is uncertainty injected into our most vulnerable places. And because that's the case, we may choose not to risk."

"There are a number of environmental concerns that impact the construction industry. These include erosion, contaminated soil, lead paint removal, air contamination by asbestos particles, disposal of hazardous material, dust control and noise level," it said.
Mapping various policy and regulatory risks which have increased with rising environmental concerns, the paper stated these issues were also flagged by a working sub-group of the erstwhile Planning Commission.

"We have begun this exercise of sensitising various stakeholders in the construction industry since a perception is gaining ground as if unplanned construction, done in a crude and unscientific ways is among the main culprits of pollution in big cities," ASSOCHAM Secretary General Mr. D S Rawat said.

The paper highlighted the fact India is urbanised only the extent of 31 per cent but urbanisation at a faster pace is imperative for a sustainable economic growth. The construction industry has a major role in stepping up the urban development.

"After an aborted attempt to smoothen land acquisition, any controversy on environment pollution is the last thing that the industry wants," the ASSOCHAM said.

In the absence of planned and organised urban development, cities have witnessed mushrooming of slums which now account for a quarter of all urban housing. Mushrooming growth of slums with lack of sanitation and absence of waste disposal add to the city pollution.

"Whether we like it or not, pollution in some of the big cities is becoming unbearable and as happened in the past, the court intervention, accompanied by pressures from civil society, health activists and environmentalists would bring in tougher regulatory norms for a host of industries which should be living up to these challenges by technology innovation and going green in their approach," the chamber said.

Except for the top 20 players, the Indian construction industry is highly fragmented, family owned, or based on individual ownership. "The process of evolving has been painfully slow and unplanned. Even a lot of construction happens in the primitive way with concrete and bricks being moved by head load. Mechanisation has crept in as projects have become large but these are only a small fraction of the construction market.

Growth would be meaningful and inclusive only if it results in improving the standards of the last man : President

Thesynergyonline Economics Bureau

 
NEW ELHI, DECEMBER 27 : THE emphasis has to be on providing adequate employment opportunities. The growth would be meaningful and inclusive only if it results in improving the standards of the last man, as welfare economists are fond of saying. India is a young nation, said the President of India, Mr Pranab Mukherjee at the  98th Annual Conference of  the Indian Economic Association in Hyderabad on Sunday

With the bulk of our population in the working age group, it becomes imperative for government and the policy makers to come up with policies for achieving growth with job creation. Growth which favours the top deciles or an even lower proportion of the population can never be sustainable or desirable. Balancing growth with equity and social justice is a fundamental requirement of our democratic polity. A careful study of not just income disparities but also of their source is required. That is the urgent task for economists to undertake, Mr Mukherjee added.

The President said the Paris Declaration or the green proposals for attaining socially just and environmentally sustainable livelihoods, shows the commitment of the world economies to the cause of environment. India being an important world player has to play a critical role towards attainment of these sustainable development goals.

The President expressed confidence that the deliberations of the 98th annual conference of the Indian Economic Association will provide valuable policy inputs to think tanks, trade associations and government at large. He stated that IEA’s regular interactions and participation in the International Economic Association’s activities would provide a great platform for Indian researchers to come up with policy prescriptions relevant to both India and the global economy.

'Successful enterprises are built from the ground up.'

Growth of large enterprises closely tied to SME growth : Panagariya

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 23 :
Entrepreneurs and their small enterprises are responsible for almost all the economic growth … Ronald Reagan

"There is nothing man will not attempt when great enterprises hold out the promise of great rewards."- Livy

And so speaking at the opening session of the Global SME Business Summit, organised by CII, Dr. Arvind Panagariya, Vice Chairman, NITI Aayog, said that enterprises with less than 20 employees comprise of 73 per cent of employment generation in the manufacturing sector. Eighty per cent of manufacturing output however is churned out by enterprises employing greater than 20 workers. This, he opined, clearly revealed the fact that growing enterprises contribute more to the economic output as well as lead to SME growth.

Ms. Partricia Hewitt, Chair, UK India Business Council emphasised on the need to strengthen partnerships and enhance trade relations between the two countries. She added that it is imperative for SMEs in both country to work closely together so they can grow together. She also confirmed that UK is working with the Indian Government and some State Governments to dismantle regulations. Many UK based firms have invested in India, many with 100% FDI, and contributed to the 'Make in India' campaign initiated by Shri. Narendra Modi, she added.

The power of internet is also rendering its magic in the arena of business development, said Mr. Rajan Anandan, Vice-President and Managing Director, Google India. India has been ranked as the second largest country for technology start-ups which by 2020 will be pegged at the count of 10,000. It has been seen that the impact of internet on business growth and profitability is profound. It has been found that Enterprises who have braced internet for business development are able generate a particular targeted revenue 50% faster and also have up to 49% greater net income than those who are not tapping into the clout of internet.

The largest employment generators after agriculture, Indian MSMEs account for around 38% of the overall GDP, 46 per cent of exports and provide employment opportunities for around 120 million people, mostly concentrated in rural areas. As such, they not only boost the economic performance of India but also promote social inclusiveness by contributing to rural industrialization. With the theme 'Make in India through Global SME Partnerships', CII organized the 12th Global SME Business Summit 2015 today in partnership with the Ministry of MSME.

QCI , FICCI join hands to create ZED Cell, implementing ZED Maturity Assessment Model

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 23 :
Dr. R P Singh, Secretary General, Quality Council of India (QCI) and Dr Arbind Prasad, Director General, Federation of Indian Chambers of Commerce and Industry (FICCI) on Wednesday signed a memorandum of understanding (MoU) outlining the scope of collaboration between QCI and FICCI to create a ZED Cell at FICCI for implementation of the ZED Maturity Assessment Model. This would be the first MoU which QCI has signed at the national level with an apex industry body.

The endeavour will leverage QCI's nationwide established accreditation system (for consultants, assessors, rating agencies etc.) and FICCI's large network of membership and state offices. The objective of the MoU is to implement the Prime Minister's vision of "Make in India" with Zero Defect, Zero Effect covering all sectors, industries (including healthcare, education etc.) and government public services.

Under the MoU, the scope of activities would include enhancing capacities for implementing the ZED model across all levels of MSMEs. It would also include developing an ecosystem through sensitization of industry bodies to drive the ZED model for continuous improvement among MSMEs.

To provide an operating framework to this agreement, the MoU shall be operated by NABET – QCI, which is driving the ZED movement. QCI and FICCI would be responsible for creating FICCI ZED Cells across focus states and districts that will include activities across ZED awareness and activation of SMEs, ZED training for consultants and creation of ZED-related quality content. The framework of the agreement will be initially valid for a period of three years and will be renewed after mutual review of progress.

To maintain a focus on fulfillment of the MoU's objectives a Steering Committee would be comprised. The Steering Committee (SC) would meet once a month to review the progress and ensure proper focus and resource utilization. FICCI will be represented by Ms. Jyoti Vij, Deputy Secretary General, FICCI as the alliance champion and Mr. Vipin Sahni, CEO-NABET will represent QCI.

Hike in fee of H-1B and L-1 visas to hamper US Economic Growth

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 22 :
FICCI feels that the hike in special fee on the popular H-1B
and L-1 visas for James Zadroga 9/11 Health and Compensation Act of 2010 will hamper the growth of the US economy and will be discriminatory for Indian IT companies. Such legislation will have a negative bearing on efforts made by the strategic partnership efforts made by Indian and US governments trying to build stronger trade ties.

Indian IT industry is of the opinion that the additional fee is unjustified similar to the earlier border security and now Health and compensation Act it has little relation with the technology industry. Such legislations not only impact business of the Indian IT sector but also limit access to skilled IT personnel for US companies. Moreover, increasing costs of hiring IT skilled personnel & services will influence US technology companies to consider moving IT operations overseas, thereby reducing US jobs and tax revenues. In the longer run, it will also imbalance Americas IT services and products consumer market.

In our view linking unemployment and H1-B visa issue with 9/11 Health and Compensation Act is unfair and should be dealt independently with a much broader outlook considering the overall impact on both economies.

RBI will support NBFCs by approving new variants: RBI Deputy Governor

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 21:
For development needs of the nation RBI will continue to approve of new types of NBFCs. Myth that NBFCs compete with Banks, they complement them. CII BCG whitepaper on the NBFC sector released.

The Non-Banking Financial Companies sector, NBFCs received a major boost today at the Confederation of Indian Industry – CII's 1st NBFCs Summit with the theme 'Regulatory Paradigm & Contours of Growth – Vision 2020'. Despite global reservations on the sector, Mr R Gandhi, Deputy Governor, Reserve Bank of India said, "The Reserve Bank is allied to the developmental needs of the economy and therefore will continue to approve of new types of NBFCs if the economy will so require them."

"World over there is an awakening post the financial crisis of 2008 about the existence, contribution, magnitude, significance and risk of the NBFC sector. From benign neglect to indifference of this sector, the world has now become anxious and seriously concerned about it. This has resulted in enhanced attention, monitoring and regulation of the sector. While the world sat up and noticed the sector recently, India had understood its relevance way back in 1963, chapter 3B dealing with regulations of Non-Banking Financial Institutions was added to the Reserve Bank of India Act 1934. It recognised that non-banking financial activities are an integral part of the financial system and compliments commercial banking. Only appropriate vigilance will be required," said Mr. Gandhi.

Mr. Gandhi also praised NBFCs when he said, "NBFCs can be advantageous due to their ability to lower transaction costs, quick decision making, customer orientation and prompt delivery of services. In terms of products and services offered, NBFCs complement banking services. They have their risk elements that have led to continuous monitoring and assessment. However RBI has been dynamically making regulatory framework suitable for the day."

Talking about the future of NBFC Mr. Gandhi said, "In my opinion, prospects for sector are not going to be uniform. Different segments of the sector are posed for different prospects and challenges. Infrastructure NBFCs will have a greater scope in the coming years both because economic growth will bring forth new projects and banks having a restrained approach towards such projects."

Speaking at the summit, Mr. Y M Deosthalee, Chairman, CII National Committee on NBFCs and Chairman & Managing Director L&T Finance Holdings Limited, said, "NBFCs in India have evolved over the past five decades to emerge as a notable alternate source of credit intermediation to meet the diverse financial needs of the economy. The resultant capital formation has become a catalyst for India's growth and development. Over the years, NBFCs have exhibited an ability to create innovative products and reach out to new client segments and regions, those which banks have typically been slow to expand into. NBFCs thus play a proactive and complementary role to the banking system by broadening access to financial services, enhancing competition and diversifying the financial sector."

He highlighted their importance in the growth of the economy when he said that, "Establishing their strong presence as an integral part of the Indian financial system, NBFCs have played a vital role in providing credit to growth-enhancing sectors (such as MSMEs) through products like project finance, transport fleet finance, trade finance, equipment finance and microfinance."

He also talked about a key pain point for NBFC that of being considered 'shadow banks' after the global financial crisis in 2007-08. "Shadow banking activities constitute a very useful part of the financial system. Their main advantage lies in their ability to lower transaction costs of operations, quick decision-making ability, customer orientation and their prompt provision of services. In the Indian context however, it may be a misnomer to term NBFCs as shadow banks, since NBFCs have been brought under progressively prudential regulations by RBI and many of the activities which contributed to the global crisis are either not allowed, or, if allowed, are allowed in a regulated environment with appropriate limits."

Mr Ramesh Iyer, Managing Director, Mahindra & Mahindra Financial Services, put the NBFC sector into perspective when he said, "While we are all under the financial umbrella, I do not believe NBFCs compete with one another. Each one of us is a niche. Some have chosen a particular geography, some focus on products while others have segmented themselves only on customers. It is also a myth that we compete with banks because we service different needs and different customers. We do not compete with Banks, we complement them. It is hence with certainty that I say that NBFCs have a great future."

Mr. Iyer stressed that the greatest strength of the NBFC sector are customer, "Historically NBFCs are focussed on customers more than on products. Everything we do: our products, processes, channels etc. are all customer driven. This has helped us differentiate between intentional and circumstantial defaulters and that I think has been a key success factor of NBFCs. Our processes have an ability to ensure that over a period of time we are able to understand and hence service customers well."

Our other strength is that we have continuously been able to innovate products. We have gone deeper and expanded the market by pricing better than others. We have recruited people from local markets that has helped us individualize products. We have invested in technology that has helped us control and bring down costs. These have resulted in the successes of the NBFC sector."

Talking of the future he said, "Our future rests on investments in technology. It will decide how fast and well we grow. We also have to go to banks on a partnership mode and say that together we will sever every need of the customer. Unless we partner, costs will not come down." He also addressed the need to reposition NBFC in the mind of the various stakeholders. "Every stakeholder – bankers, customers, regulators, training agencies, promoters - has a doubt about NBFC. This despite the fact that NBFC are India's best promotors and that this industry has never defaulted on its bank loans. We have to zero in on one point of each stakeholder and go and collectively address and convince them. This way we will raise the level of the industry substantially high." He ended by coining a new term for NBFC to call it Need Based Finance Companies.

CII and technical partner Boston Consulting Group (BCG) released a whitepaper on the potential of NBFCs in India, including outlining ways to accelerate their growth in the country. Mr Saurabh Tripathi, Partner and Director, BCG said, "Traditional sources of advantage for NBFCs will erode over time with deepening of banking in the country. It is imperative that NBFCs harness latest trends in technology, digital adoption by customers, and the web of partnerships to innovate and come up with new models. NBFCs are likely to benefit from these underlying trends and developments in the Indian market."

The day long summit was a huge success because of a large participation from the captains of the Indian NBFC industry.

GDP growth for FY16 pegged at 8.1 % : ASSOCHAM Mid Year Review

Thesynergyonline Economics Bureau

Assocham Mid-Year Review:

NEW DELHI, DECEMBER 20 :
India will truly live up to its reputation of being the bright spot in an otherwise hazy horizon of global economy with a "likely" GDP growth of over eight per cent and "very likely" acceleration of 7.8- 8 per cent in the current financial year, an ASSOCHAM Mid Year Review has pointed out.

The Review made quite an optimistic forecast of nine per cent and above growth in the next financial year of 2016-17 if the government and the Congress come together and clear the Goods and Services Constitutional Amendment Bill in Parliament and the roll out of the major tax reforms takes place from April, 2016.

"The renewed optimism comes about despite continuation of a global meltdown in commodity prices with crude oil trading well below USD 40 barrel mark while the entire metal pack is melting away in the heat of crisis. But , it is the domestic demand pickup, supported by government investment and the services sector , especially transport, hotels and trade that will push the Indian economy to cross the psychologically important level of eight per cent," the Mid Year Review of the chamber said. So, the ASSOCHAM Review pegs the GDP growth for fiscal 2015-16 at 8.1-8.2 per cent.

It said the latest revival in manufacturing which helped overall Index of Industrial Production to reach 9.8 per cent in October,2015 along with robust pick up electricity and capital goods would lead the growth trajectory triggering, in the process, lot more activities in the services. The number of passengers handled by civil aviation in second quarter of the current fiscal went up by 17 per cent. So was the case with commercial vehicles which registered a growth of 10.7 per cent , another indicator of pick up in the economic activity.

There was a catch up seen by 3.5 per cent in the case of civil aviation cargo and 3.9 per cent by major ports during Q2 of 2015-16.

The winter months, from October onwards, helped by the festival season and pick up tourism in states like Rajasthan, Goa, Kerala, Delhi, Madhya Pradesh augur well for the transportation, hotels and trade. Construction activities seem to be picking up , especially in the roads and highways while some green shoots are visible in micro markets of real estate as well.

According to the review, while rains have remained deficient for two successive years, the negative impact on the Rabi crops would not be as bad as Khariff. "The latest reports suggest the wheat sowing is still in progress in several parts of the country and if we get some showers in the next three to four weeks and do not face any unseasonal rains in March, Rabi crops mainly of wheat, rice ,grams and oilseeds like mustard should help the farm sector. Should these crops improve their prospects the livestock activities also look up giving vibrancy to the agro economy, which is so vital to the country", the Review said.

Sharing the optimism in the document, ASSOCHAM President Mr Sunil Kanoria said while the only drag is the export sector and overall external scenario is playing itself out , helping India. " We would call it 'Luck by Chance' factor. See, the moment dollar started rising against rupee due to strengthening of the US economy, global prices of two main import items for India –crude oil and gold fell further. So, it was an even –out situation giving the RBI Governor extra room in the face of global headwinds".

The ASSOCHAM Review , however, remained worried about the continuous stress on the balance sheets of the public sector banks, underlining the need for a multi-pronged strategy by the Finance Ministry , RBI and the bank managements along with the major borrowers who are well meaning but somehow find themselves in woes of hard economic realities .

The combined stressed assets and NPAs may well be 15 per cent of the total advances, which have to be brought down substantially without any further loss of time. No significant credit growth is possible if this issue is not resolved. "Even if interest rates become further benign, the NPAs and stressed assets would remain a major deterrent for credit growth," the paper mentioned.

"Time heals everything apart from corrosion."
- Aaron J. Munzer

India losing US$ 40 billion due to corrosion per year

Thesynergyonline Economics Bureau

PUNE , DECEMBER 20 :
"The corrosion impacts, I would say, caught us by surprise, when we opened them up and realized the extent of the corrosion damage, we realized we couldn't just replace the parts we were going to replace. We had to put those airplanes aside."-– Michael Manazir

"I have legs of iron, but to tell you the truth, they're starting to rust and buckle a bit."- Jeanne Calment

And so experts attending the 2-day long seminar on Corrosion Management and Corrosion Audit organized by Confederation of Indian Industries (CII) on Saturday have stressed the need of sustainable infrastructure having long life in the coastal state of Maharashtra, which has vast coastline with high salinity.

The experts also stressed on the need of government and private push to generate steel and stainless steel in the country with push in infrastructure, ports, civil aviation, urban infrastructure and storage, ports and improvement in overall business scenario.

"India loses Rs 2 trillion (US$ 40 billion) every year due to corrosion of infrastructure, industrial equipment and other vital installations, according to last estimates from Corrosion Management Committee of Confederation of Indian Industry (CII) . Corrosion has a huge economic and environmental impact on virtually all facets of the world's infrastructure, from highways, bridges, and buildings to oil and gas, chemical processing, water and waste water systems and particularly industrial structures." Said Dr U Kamachi Mudali, ,Member CII corrosion management committee and Associate Director , Indira Gandhi Centre for Atomic Research speaking at the seminar.

"In addition to causing severe damage and threat to public safety, corrosion especially in coastal states including Gujarat where salt content is high in atmosphere, water, rain and air disrupts. operations and requires extensive repair and replacement of failed assets. India is a resource crunched nation it needs sustainable and maintenance free Infrastructure that has long span of life. Gujarat being a coastal state and has highest number of high end critical industries including petroleum, energy, ports, auto industry and power plants ,where sustainable production is the key " said Mr Yatinder Pal Singh Suri, MD & Country head, Outokumpu India, Finland based world's largest stainless steel making company an member CII Corrosion Committee while speaking at the seminar.

"These high end industries in the State as well as in the country need high quality corrosion resistance stainless steels which form a key material in hostile environments . Outokumpu , being the oldest manufacturer with over 80 years of experience and a pioneer in product and application innovations, is supporting the demand for customised stainless steel for all leading engineering companies as a reliable supplier,"said Mr Suri.

"Stainless steel structural elements and reinforcing bars in concrete have been used in coastal regions to achieve more than 100 years of maintenance free life. Duplex stainless steel storage tanks are in use world wide to store oils and corrosive chemicals with life cycle cost advantages over carbon steel. Duplex Stainless steel is essential for desalination of sea water into drinking water. Also for drinking water storage and distribution for humans in safe, clean and hygienic manner. Railway coaches, Metro coaches, Wagons becoming maintenance free and lighter to save on haulage energy costs with stainless steel. Railway stations can go for clean drinking water in taps through stainless steel storage tanks and pipelines for distribution. Stainless Railway bridges along coastlines will also become maintenance free, said Mr Suri .

"Stainless steel is the fastest growing segment of the metals industry,its applications are diverse and new applications are being constantly being developed. It has become major part in all of our lives, and has truly changed the world. In India demand for stainless steel is on constant increase due to awareness about the product and availability of right grades and sizes. The demand for the corrosion free metal is on increase in Architecture , Construction high end industries including Oil & Gas, Energy and shipping-related industries, railways, ports, infrastructure and automotive where corrosion is a serious issue," said Mr Suri.

"Even the grand iconic 312 feet statue of Maratha warrior king Chhatrapati Shivaji in the arabian sea off the coast of Mumbai and 'statue of unity' in Gujarat should be designed to meet 1000 years life span with ever lasting eco-friendly advanced material stainless steel Similarly stainless steel should be used for beautification of civic projects for making Pune a smart city ."he added .

"Even Shri Swami Narayan temple (Akshardham) coming up at Kolkata and a Buddhist temple being built in hill area in Thailand are using stainless steel rebar for non-maintenance above 1,000 years of life of the temples,"said Mr Suri .

 

CCI to soon come out with changes in regulations to ease M&A process: Ashok Chawla

Thesynergyonline Economics Bureau

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NEW DELHI, DECEMBER 18 :
The fair-trade regulator, Competition Commission of India (CCI) will soon come out with changes in regulations to ease the process of mergers and acquisitions (M&As), CCI chairman, Mr Ashok Chawla said at an ASSOCHAM event held in New Delhi on Friday.

"We are actively and quickly reviewing regulations, we have called for comments from some of the law firms which have been filing with us and I think before this year ends, which is in the next few days and 2016 starts, we will make further changes on things which have been bothering companies in terms of authorised signatories, invalidation of notices, which has become a matter of concern," said Mr Chawla while inaugurating 4th National Summit on Mergers & Acquisitions organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"The idea is to make the regulation and process as user-friendly as possible," said Mr Chawla. "These are minor nuts and bolts issues but they are very important from the point of view of the stakeholders."

"So we are taking a look at these and we will be in a position to finalise the changes whatever they are before the end of the month," he added.

Expressing concerns over time taken in approval of cases due to rise in number of filings and dearth of professionals, Mr Chawla said, "We want that majority of cases which are simple should be cleared expeditiously, so there will be in 2016 a clear southward direction in terms of time taken in which cases are approved."

"The discipline is that we should clear it in 30 working days, but if you take the total time taken without taking into account clock stop and others, average time taken is about 50-60 days, which according to the Commission is on a higher side, we want to reduce it and try and bring back majority of the cases to within actually 30 days," said the CCI chief.

He also advised the industry and corporates, particularly the multinational corporations (MNCs) to use the route of e-filing which was recently started to facilitate industry's interaction with the Commission.

Talking about the M&A regime that has operated during the course of past 4.5 years, Mr Chawla informed that CCI had approved 322 cases out of the total 355 cases that have come up during June 2011 and December 2015 and the balance are in the pipeline.

He said that in less than even one per cent of the 355 cases, the CCI felt the need to go into detailed scrutiny of the proposal.

He also said that number of filings have been going up steadily as from 45 in 2013 it had almost doubled to 88 in 2014 and in 2015, till a few days ago it was 117 already. This year, October saw the highest number of filings - 21.

He said that almost 98 per cent of cases are relatively simpler cases of routine consolidation, sale of shares, intra-group restructuring and others and it needs to be encouraged so that industry and its various sectors reach a scale and size which are optimum from the economic efficiency point of view.

"So basically the increase is a proxy for improved business climate and the need for consolidation, it will also help in an important way in the overall march towards greater competitiveness of the economy which is extremely important for 'Make in India,' programme and policy which the government is pursuing," said Mr Chawla.

He also said that M&A is a process which is inevitable, is relevant for corporate, which is encouraged from the policy point of view and it should not be seen as a tax-saving or tax-evading instrument. "It is the need of the hour and that is the approach which we in the Commission have been trying to follow."

On the penalty regime, Mr Chawla said, "There has to be a certain amount of proportionality in terms of penalty that are imposed and the Commission has in recent past been trying to look at that proportionality quite effectively and genuinely but otherwise, practices which fall foul of competition particularly cartel activity need to be curbed with a reasonably heavy hand, more not because of that company but to serve as a signal to others to prevent them from doing what they might be tempted to do."

"We need enforcement which changes behaviour and we also actively pursue advocacy, so the idea is that corporates are apprised of the fact that there is this law which is fairly robust, it can aggressive and therefore, better to prevent anything happening then it be cured later," further said the CCI chairman.

 

Govt to revamp satutory provisions
in shipping sector

NEW DELHI, DECEMBER 18 :
With a view to simplify the statutory provisions in the shipping sector, the Centre is in the process of revamping archaic acts and will introduce the same in Parliament in next six months, Mr Rajive Kumar, secretary, shipping ministry said at an ASSOCHAM event held in New Delhi ON Thursday.

“We are relooking at most of our acts some of which are more than 100 years old and we expect that in the next 6 months we should be able to revamp and introduce in the Parliament all the major acts which this ministry is concerned with, be it the major ports act, merchant shipping act, doing away with damp and so on,” said Mr Kumar while inaugurating 5th International Summit on ‘Infrastructure Finance-Bridging the gap,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

He informed that National Perspective Plan (NPP) for government’s ambitious Sagarmala project is likely to be ready by about end of next month.

“Under the Sagarmala programme, for the first time in the country, we are getting an OD study done of more than 80 per cent of our total cargo, which will optimise what should be our transportation mode because we acknowledge and know that this number of 14 and 16 per cent of the cost is substantially higher than what our economy can afford,” said Mr Kumar.

“So we expect by end-January or mid-February we will have this complete national perspective plan ready for the Sagarmala programme,” he added.

“The most important component of Sagarmala is coastal community development, we are getting coastal regional development plans so that local population is also taken along while other plans are put in place,” informed Mr Kumar.

The shipping secretary also said that ministry was in the process of decking up 106 new waterways to be studied as national waterways. “There would be a large number of components where investment opportunities would be available.”

He also said that shipping ministry was in the process for revising model concession agreement.

On the issue of resolution mechanism, Mr Kumar said “30 years is a long enough time to be fixated in a rigid concession agreement, post-bidding changes are huge issues to resolve.”

He said that under the Indian Port Rail Company set up by the shipping ministry to take care of the last mile railway connectivity proposals, work was in progress on 25 projects while tenders were done for six projects and the government would expedite work on this front.

Talking about capacity enhancement of ports, Mr Kumar said “We have studied about the mismatch in capacity, major ports are increasing their capacity through PPP projects and we hope that if we are able to increase our GDP growth to nine per cent then too we will have enough capacity as even various private sector ports are doing a good job.”

The shipping secretary further said that there is a huge scope in coastal movement of goods and in having capacities of cement, steel and other commodities.

In his address at the ASSOCHAM conference, former finance secretary, Dr Arvind Mayaram emphasised upon the need for more innovative ways for raising long-term finance for infrastructure sector.

“There is also a need for right ecosystem to ease flow of infrastructure financing,” he said.

Plaudit for CII's efforts in promoting technology-driven growth

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 18 :
The Global Innovation & Technology Alliance (GITA) which the Technology Development Board (TDB) runs in partnership with the Confederation of Indian Industry (CII) is an innovative funding mechanism for cross-border technology development through partnerships between industry and academia between India and other countries. This was stated here on Thursday by Minister of State for Science and Technology, Mr Y S Chowdary on the occasion of 21st Technology Summit, which is a joint initiative of the Department of Science and Technology (DST) and CII.

This year the country partner for the summit is Republic of Korea with its Ministry of Science, ICT and Future Planning and the National Research Foundation of Korea being the partner organisations for the Technology Summit. The minister also announced that as a follow-up to the announcement made by Prime Minister Narendra Modi during his visit to Korea in May 2015, a joint request for proposals had been launched by GITA for seeking applied research proposals from industry and academia in the areas of cleantech, renewable energy, robotics & automation and electronics system, design & manufacturing.

At the time of Union Minister for Science and Technology Dr Harsh Vardhan’s visit to Republic of Korea the two sides had agreed to support three joint business-led industrial R&D projects aimed to develop new technology prototypes which will have potential for commercialization. This will contribute to the national initiative on Make in India, said Mr Chowdary. Lauding CII’s efforts in creating and sustaining the platform of technology promotion and investment for 20 long years, he said, “Platforms like these not only facilitate exchange of views but also lead to creation of new knowledge through cross-pollination of ideas.” He promised all possible support to industry in promoting R&D investment to create smart technologies for sustainable growth.

Dr Arbindra Mitra, Advisor and Head, International Affairs, Department of Science and Technology, who was present on this occasion, said the platform of Technology Summit had enabled India to develop a variety of programmes with different countries with the involvement of industry. It was important to focus on solution science than discovery science, he said and added that academia needed to be part of this matrix too. He also announced that a new policy for promoting start-ups was under works.

Dr Gopichand Katragadda, Chairman of CII’s National Committee on Technology; & Group Chief Technology Officer, Tata Sons Limited said, “Cultural aspects of partnerships with different countries are interesting to study. Korea has the phase of palli palli, which means “quickly quickly”. They have done all things quickly. That is the cultural aspect. They were quick to achieve 100 per cent literacy, they have put up a 100 billion dollar research fund Speaking on this occasion.”

Dr Ra Sang Won, Director of Center for International Affairs, National Research Foundation of Korea, said, “This year’s technology summit is important since the two countries are going to discuss creating smart technologies for sustainable growth. Korea spends 2.5 per cent of GDP on R&D and offers significant opportunities to Indian scientists and researchers to collaborate. NRFK has a budget of USD 3.5 billion for 2015.

Mr BVR Mohan Reddy, Executive Chairman, Cyient and Chairman, Board of Governors, IIT Hyderabad said, “Global economies have been on a high growth trajectory because of new waves of technology at every stage. The present phase is of internet and it has the power to disrupt old technologies in a drastic manner.”

Minister of the embassy of Republic of Korea, Mr Minsik Ahn, who was present at the inaugural session said Korea was proud to be the partner country of this year’s Technology Summit. He shared that Korea became a technology advanced country in a matter of six decades. The country focused on building indigenous technologies from the very beginning. Today it owns cutting-edge technology in a number of areas such as ICT, electronics, energy and internet of things.

Guidelines for production subsidy for electronics manufacturers being finalised: DeitY official

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 15 :
The Centre is finalising guidelines for production-linked subsidies for companies willing to manufacture electronic items like microprocessors, semiconductors and others within India, a top IT and Communications Ministry official said at an ASSOCHAM event held in New Delhi today.

"We have introduced an element of production subsidy, now we are in process of finalising guidelines and since there are different kinds of projects, we are looking for specific technical inputs," said Dr Ajay Kumar, additional secretary in Department of Electronics and Information Technology (DeitY) while addressing a roundtable conference on 'Make in India: Trade and fiscal Incentives for IT hardware and electronics industry,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"Where we need support in that is, to be able to pin-point what needs to be subsidised and how, some work is going on, the consultants are working on it, but any specific inputs from industry are more than welcome," added Dr Kumar.

He said that the production subsidy is very substantive and a huge differentiator with 10 per cent of the turnover for 10 years and it is meant for projects that are capital incentive and possibly do not look attractive by themselves.

He also informed that government is working on fabless chip design policy. "That is work under progress, it will support the companies involved in chip design."

He emphasised upon the need to manufacture low-priced laptops in India to spur computer manufacturing. "May be a price point of Rs 10,000 and it cannot be a device which can be seen as a low grade version of laptop."

Dr Kumar also informed that with a view to push demand for PCs and other IT infrastructure, the government was formulating a project that would be launched during the course of about next three months to provide fundamental facilities of education, health, skilling and others to every village that is connected.

"Every village which has connectivity should have these 3-4 fundamental things - facility for e-education (virtual classroom), e-health whereby every PHC (primary health centre) will have telemedicine linked to the district hospital so that counselling and basic diagnostics can take place and skilling - resource centres in each Panchayat where through VC-kind of system people can be skilled and made available; CSCs (community service centres) - these can become four fundamental pieces in a village to be implemented in places where there is connectivity," he said.

"After due approval, we hope to start implementing this scheme by March 2016," added Dr Kumar.

He also said that about 20-25 interested parties had made presentations to the Canara Bank Venture Capital, the nodal agency for Electronics Development Fund (EDF) and they have zeroed on 6-7 cases.

Dr Kumar informed that the EDF is getting registered under the alternative investment fund (AIF) category. "That process, I am told should be over sometime in December, it is already before the SEBI (Securities Exchange Board of India) and there is a certain timeline which SEBI has to follow to register fund like this."

"The moment EDF gets registered, we will have 6-7 cases which can immediately be supported under EDF, but that is still the beginning, I honestly feel that a whole lot of funding and innovation requirement should be met through this ecosystem of EDF," said Dr Kumar.

"We are looking to expand this whole exercise of giving direct grant to industry for research and the Conditional Access System was one such effort, we now need to institutionalise this effort and we are trying to work in that direction, so it is not only that we give money to public sector institutions, but we also give it to the industry," he further said.

Uttar Pradesh Chief Minister Akhilesh Yadav to flag off UP Pravasi Divas

Thesynergyonline Economics Bureau

DUBAI (UAE), DECEMBER 16 :
Come January 4, 2016 and the curtains will go up on the two-day 'UP Pravasi Divas' (UPPD) at Agra. UPPD is aimed at cementing the bonds between Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) with their state of origin. The mega event also seeks to deepen the commercial engagement with UP NRIs and PIOs by way of
enhanced investment and trade flows into the state.

UPPD will be inaugurated and chaired by the State Chief Minister, Shri Akhilesh Yadav who will be accompanied by other State Ministers and top government officials. The Federation of Chambers of Commerce and Industry (FICCI) is the institutional partner for Govt of Uttar Pradesh, India, for this iconic event.

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To promote this event, a team from Government of Uttar Pradesh and FICCI, organized a Roadshow in Dubai in partnership with IBPC. During this event, Principal Secretary NRI, Govt of Uttar Pradesh, Mr. Sanjiv Saran, shared that " UP State Government would like the UPPD to develop as the largest platform for exchange of knowledge and information amongst and with UP NRIs and PIOs. The Government of Uttar Pradesh has taken a number of initiatives towards engaging with the UP diaspora and it has already set up a full-fledged NRI Department which looks into the issues of the NRIs/ PIOs striving towards building a meaningful relationship with the State. A new Department of NRI Affairs has been set up and all efforts are being made to involve the NRIs and PIOs in the mainstream of the development in the State. A new website www.upnri.com has been launched to keep the diaspora from U.P. abreast of the latest developments in the state", he said.

An exhibition is also being organized along with this event at the same location to showcase the economic strengths of the State and its achievements. The major achievements and economic developments to be highlighted include modern infrastructure such as Lucknow-Agra Expressway, Lucknow Metro, Metros in NOIDA and Greater NOIDA, Trans-Ganga City at Kanpur, Saraswati Knowledge City in Allahabad, Solar Parks in Jalaun and other places, IT City in Lucknow, IT SEZs in the state, the integrated industrial cities of NOIDA and Greater Noida and the upcoming hubs of electronic manufacturing.

Since a large number of start-ups seek venture capital, UPPD would provide an excellent opportunity for the young entrepreneur seeking venture capital since a number of prominent venture capitalists, both from the India and abroad will also be participating in the event. Some have already confirmed their participation. For instance, an entrepreneur from U.P. settled in U.K. can meet an angel investor from the Silicon Valley, who hails from U.P. to set up a venture in the State or anywhere in the world. This would be the strength of the platform that the UPPD will provide.

UPPD would also be an excellent opportunity to showcase the state's strengths in the education and healthcare sectors. Leading hospitals including Medanta (Lucknow and NOIDA), Fortis (NOIDA, Greater Noida and Lucknow) and other international groups are setting up stateof-the-art medical facilities in the state beside the Cancer Hospital being set up by the State Government in Lucknow. Leading educational groups including Amity, Sharda and Jaipuria are also operating in the state and plan to open up new facilities. A Knowledge University is coming up at Trans-Ganga City in Unnao.

An entire session would be devoted to the Girmitiyas, their history, achievements and the present issues. devoted to the Indian diaspora settled in the pacific rim countries, namely,
Surinam, Fiji, Trinidad and Tobago, Mauritius who migrated during the period 1833 to 1920 as indentured labour, popularly known as the Girmits. Most of them are PIOs and have risen to occupy the highest positions in politics and economy in those countries. Some of them would be conferred the UP Ratna Award at the UPPD. This session would recognize the pains of emigration as well as the achievements of the Girmitiyas.

The State Government runs a program "Discover your roots" to enable the PIOs connect with places of origin of their fore-fathers and their relatives who may be still living in U.P. The State Government is roping in University scholars from History and Anthropology Departments of various Universities in U.P. to help trace and discover roots of people who left the country a long time back. The participants can take full advantage of this program. This session will be unique to the UPPD as this segment does not get adequate focus during the PBDs.

As the State is aggressively promoting electronic manufacturing, IT and renewable energy
including solar farms and solar parks, making of films in the state, the UPPD will be an excellent platform to showcase our progress and the potential. This will attract and encourage potential investors and also enhance the image of U.P. as a state, which is now at the forefront of cutting edge technology.

A number of eminent personalities and industry captains from these sectors have been invited to speak at the sessions in UPPD 2016.

 

SCOPE for better safety measures

Thesynergyonline Economics Bureau

SCOPE Workshop:

NEW DELHI, DECEMBER 15 :,
Standing Conference of Public Enterprises (SCOPE) in association with Directorate General Factory Advice Service Labour Institute (DGFASLI) and International Labour Organization (ILO) organized a National Workshop on "Strategies for Improving Occupational Safety & Health in CPSEs" here on Tuesday. Dr. D N. Sharma, Member, National Disaster Management Authority (NDMA) inaugurated the Workshop.

 

Dr. D.N. Sharma, Member, NDMA complimented SCOPE for conducting knowledge sharing programme on a periodic basis to promote excellence in the field of environment, health and safety. He emphasized on building sustainability so that multi stake holder partnership work towards unified goal of chemical safety. Adherence to the laws and enforcement of applicable rules and regulations are the actual drivers for robust chemical disaster management in the country, he added.

Mr. R.G. Rajan, Chairman, SCOPE & CMD, Rashtriya Chemicals & Fertilizers Ltd in his Special Address said occupational safety and health measures increases productivity and performance and contributes in building a culture of health safety. He said Corporates should draw lessons from reports of near miss incidences, analyze and discuss them to avoid future accidents. He emphasized that Operating Manuals on occupational safety should be updated periodically.

Dr. U.D. Choubey, DG, SCOPE in his Address said occupational safety and health is an integral part of the public sector management who employee about 14 lakh employees. He informed that Public Sector has structured safety departments and are better placed than others to overcome hazardous accidents. While citing a ILO study, he said occupational accidents and work related diseases cause over 2.3 million fatalities and adversely erode 4% of world GDP (2.8 trillion dollar) in terms of capital owing to occupational accidents and work related diseases.

Mr. P.P. Mitra, Principal Adviser, Ministry of Labour & Employment informed that the Govt. of India is codifying 44 labour laws into four labour courts to make compliance easy. He emphasized the need to have a converged database to devise occupational health policy of the government. Training is an integral part of the safety culture, he added.

Mr. Ravindra Peiris, Sr. Specialist (Employers' Activities), ILO in his address said the government, trade unions and employers should work together to build a culture of occupational safety and health. He extended full support to SCOPE in such endeavour.

Dr. Avneesh Singh, DG, DGFASLI said there is need to innovate and devise new steps to counter these hazards. The Workshop was attended by senior executives working in safety departments of PSEs.

GST model law to be finalised and put on public domain in about a month: FinMin

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 15 :
"The Union Finance Ministry today quashed reports of draft model law on goods and services tax (GST) being in the public domain and said the draft law will be finalised in a month's time and put up for comments and suggestions from the trade and industry.

"It is going to take at least another month by which we will be able to finalise the draft law and once that is done we will be putting it up in the public domain and similar process of consultation and regional conferences for interaction with trade and industry will be done, so that we are able to get your comments on the draft law," said Ms Rashmi Verma, special secretary, Department of Revenue while inaugurating ASSOCHAM's 53rd national conference on GST.

"There was talk about draft model law being there in the public domain, but let me clarify the draft model law which has been put up by somebody on the public domain is not the official draft law, in fact we are still working on it," said Ms Verma.

"Whatever is in circulation is just the base paper which was prepared for kicking off the discussion on the draft law and there might be number of changes in it," she added.

"It is a huge tedious process through which we are going, it is a consultative process in which we are involving all states and we look at each clause very-very minutely and only then we will be able to finalise the draft law," further said Ms Verma.

She said that FinMin has also finalised core business processes on the basis of recommendations of the several committees set up by the Empowered Committee and the ministry has received number of valuable comments from the industry.

"We have set up a committee which is looking at each of your suggestions and this sub-committee which consists of some of the state government officers, CBEC officers will be giving their recommendations to the main committee which will be chaired by me and member secretary of the Empowered Committee and we will look at each recommendation made by this sub-committee on the business processes and take a view whether we need to make any changes in these business processes based on your feedback," said Ms Verma.

"Whatever changes are made with that, we will again be making public the revised draft of business processes which will be open for discussion with the trade and industry," she added.

"We have to come up with the law and business processes which will be trade-friendly and much simpler than the existing ones, with that in mind we are working towards finalising the business processes and the draft law," further said Ms Verma.

On the issue of proposed one per cent tax on inter-state movement of goods, Ms Verma said that FinMin has accepted the recommendations of the Select Committee and the cascading aspect of one per cent additional tax will get minimised because this one per cent additional tax will now be only on the sale i.e. on the value addition and not on the supply of goods.

"The fear that every time goods move from one state to another or from one depot to another there will be a one per cent additional tax need not be there because that change has already been made which is now currently in Rajya Sabha for passage," said Ms Verma.

"However, if after consulting various pressure groups, political parties and trade and industry it is felt that we should drop this one per cent, we are open to it and definitely I also agree that with the one per cent going, the GST structure will improve considerably because even if it is going to be there only for two years, there will be some amount of cascading though we are making all efforts to minimise this," she added.

Talking about the preparedness of the government vis-à-vis roll out of GST in 2016, Ms Verma said, "We are fully geared towards rolling out of GST in 2016, our IT infrastructure is going to be in place, we have selected the agency, we have finalised the draft business laws which have been approved by the Empowered Committee, we are in the process of finalising the draft law which will be soon put in the public domain and all other administrative measures which have to be taken have already been taken by the government."

She also informed that IT processes will be ready by the end of January.

In his address at the same ASSOCHAM conference, Mr Najib Shah, chairman, Central Board of Excise and Customs (CBEC) said that trade and industry need to understand that in the GST regime exemption may not be the way to go forward.

"We are in the process of pre-budget discussions and despite the fact that GST is not too far in the horizon, every single industry association starts their discussions only with a series of exemptions which they would like to have," said Mr Shah.

"So long as every tax which you pay across borders are being VATable so that the final product does not have any input taxes you should be comfortable, that really should be your concern and aims rather than look for any exemptions," he added.

Conceding that dispute resolution is going to be a challenge, the CBEC chief said "We have to have uniformity between the centre and the states in the manner in which we handle disputes, we have to ensure that there is least amount of trouble for trade in having resolution to the disputes."

FICCI and UN Women sign MoU to advance gender equality and women empowerment

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 15 : Federation of Indian Chambers of Commerce and Industry
(FICCI) and UN Women Multi Country Office for India, Bhutan, Maldives & Sri Lanka have signed a memorandum of understanding (MoU) in New Delhi to strengthen collaboration on advancing gender equality and women's empowerment in the business sector. The strategic partnership between the two organizations will help to achieve the common goal of realizing the rights of women and girls as critical preconditions for effective and sustainable development.

Dr. Rebecca Tavares, Country Representative, UN Women India MCO and Dr. Jyotsna Suri,
President FICCI who is also the Chairperson & Managing Director of Bharat Hotels signed the MoU on behalf of their respective organisations.

On this occasion, Dr. Jyotsna Suri noted that "FICCI is upbeat about its partnership with UN Women. This MoU will enable us to identify, facilitate and influence business practices that promote gender equality and women empowerment, the two vital components for advancing development and enhancing representation of women across all sectors and levels of economic activity".

Dr. Tavares also complemented that by saying the strengthened partnership would provide a strategic platform to both organizations' to leverage their comparative advantages in furthering progress on shared goals to contribute to transformative changes for women in the private sector.

"The new Sustainable Development Goals, which are expected to shape policies and social
investments for the next generation, strongly emphasize the role of the private sector in the implementation of the Goals. Our agreement here today is in line with that vision," she said, noting that the agreement will set an example for businesses and motivate them to prioritize equal opportunities and representation of women in all layers of management, supply chains, and markets, right up to the boardroom.

The strategic partnership between FICCI and UN Women is another significant step towards advancing equal opportunities and rights for women in the workplace, marketplace and communities. As a step forward in this partnership, UN Women will be collaborating with FICCI for the first ever FICCI-FLO Film Festival on women's empowerment along with a Global Symposium on 'Gender in Media' presented by the Geena Davis Institute of Gender Studies in Mumbai in February next year.

Through this partnership UN Women and FICCI will also work towards furthering UN Women's global solidarity movement on Gender Equality – "HeForShe". HeForShe invites men and boys as equal partners in the crafting and implementing of a shared vision of gender equality that will benefit all of humanity.

Since the campaign's launch at the United Nations, September 20th, 2015, by Sam Kahamba Kutesa, President of the 69th session of the General Assembly, UN Secretary-General Ban Ki-moon and UN Women Global Goodwill Ambassador, Emma Watson, hundreds of thousands of men from around the world including Heads of State,
CEOs, celebrities, and global luminaries have committed their voices to gender equality.
UN Women and FICCI will together look at creating HeForShe Corporate Partners who will have very high reputations for strong ethical practices and equitable gender policies; demonstrate global excellence in their field of business; offer a global reach with a broad information distribution channel that they are prepared to bring to the campaign; and commit their expertise and other corporate resources to end gender inequality.

The MoU will provide a framework to both the organisations, to promote research and
advocacy on gender responsive policies in select sectors. It will also ensure capacity building of women professionals enabling them to assume leadership roles in line with the provisions of the recent Companies Act 2013.

This proposed collaboration between UN Women and FICCI, the largest and oldest apex
business organization in India will inform policy of India's businesses and industries to design and implement gender responsive practices. As a growing effort by UN women to strengthen collaboration with the business sector UN women hopes to expand its outreach within the industry and acknowledge the role of this sector as an important stakeholder in development and economic growth.

 

Think together, work together and grow together, says President

 

NEW DELHI, DECEMBER 14 :
The President of India, Mr Pranab Mukherjee, on Monday (December 14, 2015) delivered the Indira Gandhi Memorial Lecture of the Asiatic Society in Kolkata.

Speaking on the topic of "National Integration", the President said India has maintained remarkable unity and identity though the centuries, in spite of its vast size and immense diversity. National integration is essential for the idea of India to grow. With India emerging as an influential player in the international arena, the problems of our nation with a population of 1.28 billion can be successfully handled if we think together, work together and grow together.

The President said the foundations of national integration must be laid in the minds and hearts of all Indians. Every citizen of this country must know what India is and has been. He must be broadly aware of our long history and the great civilizations that grew on this soil. All Indians must learn about the people who came here from different parts of the world and made their own contribution to the splendid mosaic that Indian culture is. Knowledge about different religions and great saints who took birth here should be part and parcel of everyone's education. Most important of all, the basic unity that keeps us together amidst the immense diversity of our peoples, ethnicities, languages and cultures should be ingrained in every individual citizen, especially the youth.

The President said national integration demands that every citizen recognise the primacy of national interest over group or individual interests. Sometimes, it does happen that regional interests overtake our commitment to the national interest. We have to guard against any such tendency. We must encourage a broad human outlook in all our citizens and educate them to rise above caste or communal loyalties. We must learn to respect the rights and sensitivities of minorities, both in letter and spirit. We must cultivate a secular and democratic outlook, and promote a way of life that is inclusive and does not interfere with civic duties and rights as well as responsibilities of individuals. We must strive to maintain an atmosphere where every community feels a part of the national narrative.
The President said if India is to meet the challenges of development and carve an honourable place for itself in the comity of nations, its citizens must make efforts continuously to increase production, distribute wealth and provide services equitably among all the people. They must constantly endeavour for national advancement and for achieving a shared vision of a great India.

We need world class academic institutions if we aspire to become one of the top nations of the world, says President

Thesynergyonline Economics Bureau

NEW DELHI, DECEMBER 13 : The President of India, Mr Pranab Mukherjee on Sunday delivered the Debranjan Mukherjee Memorial Lecture in Kolkata.

Speaking on the occasion, the President said India cannot aspire to become one of the top nations in the world and sit at the high table of the international comity without having world class academic institutions. He said physical infrastructure for higher education has expanded fast in India in recent years. We have 712 universities and over 36,000 colleges, but not a single Indian institution figured in the top 200 rankings till recently. There was a time when India played a dominant role in the higher education system and we had renowned seats of learning like Takshashila, Nalanda, Vikramashila, Valabhi, Somapura and Odantapuri. India now has to work towards regaining that glory of the past.

The President said as Visitor to large number of institutions of higher learning, he has been regularly convening conferences and emphasizing on the need to improve international rankings. The basic problem is not lack of merit on the part of our higher learning institutions but technicalities and our not providing relevant information to the international rating agencies. The President said he was happy institutions are now taking the ranking process more seriously in a proactive and systematic manner. Thanks to the efforts of the institutions concerned and his constant prodding, two Indian institutions have broken into the top 200 for the first time. He was confident many more would join these institutions soon.

The President said the Internet, mobile phones and TV have transformed the world. There are no longer any territorial limitations. Technology and e-classrooms can be used to access best of teachers anywhere. This will help address the problem of faculty shortages.
The President said there is need for cross fertilization of ideas. Faculty and student exchanges should be regularly organized. Novel ideas that can be transformed into marketable products should be supported and higher education institutions should in association with grassroots entrepreneurs create incubation centers.

The President said India has been traditionally a fossil fuel driven energy economy. There is a need to develop solar energy and other alternate energy to reduce dependence on hydro carbons.

The President fondly remembered Shri Debranjan Mukherji who taught him for four years in Suri Vidyasagar College. He recalled that the College has excellent teachers at that time.

The Memorial Lecture has been instituted in the memory of Late Debranjan Mukherji, an influential figure who taught Bengali language and literature. He served in Suri Vidyasagar College, Guskara Mahavidyalaya, Bidhanchandra College at Asansol and the University of Burdwan, where he later became the Head of the Department of Bengali.

 

"We live in a society where everything's packaged "

Packaged food biz set to rise to
US$ 50 bln by 2017: Survey

Thesynergyonline Economics Bureau

Packaged food

NEW DELHI, DECEMBER 13 :
"The packaged food business environment is very Darwinian. You're fighting for survival every year; you evolve and grow or you die. It's really that simple."-Douglas Conant

And so the size of packaged food in India is set to witness a quantum jump to USD 50 billion by 2017 from the present level of USD 32 billion growing by a CAGR of 35 per cent on the back of increasing popularity and demand for ready to eat food, snacks as such food is convenient and gaining consumer confidence, according to an ASSOCHAM survey.

Average rate of annual spending on packaged food by Indian households has increased by 32.5 per cent during the years 2010 to 2015 while the growth is expected to touch around 35 per cent in the coming years, it said.

The survey highlighted that 76 per cent of parents, mostly both working, with children under five year in the big cities are serving these easy-to-prepare meals at least 10-12 times per month in some form or the other.

Mr D.S. Rawat, Secretary General ASSOCHAM said, the consumption of packaged food is much higher in the urban areas, especially metros, where life is fast-paced, attracting lot more companies to launch new types of products and variants.
The paper also points out that there is a large divide between urban, semi-urban and rural consumers. The urban demand accounts for 80 per cent of all packaged food.

About 76 per cent of the nuclear family feels that they have less less time to spend in the kitchen. It is in this background that home delivery business model for cooked food has grown multi-fold.

Nearly 79 per cent of unmarried people prefer the convenience food. The main categories of packaged food are bakery products, canned/dried processed food, frozen processed food, ready-to-eat meals, dairy products, diet snacks, processed meat and health products and drinks, points the survey.

Food manufacturers have also started concentrating on manufacturing new innovative food products and ready to eat processed food so that it can keep up with the speed of ever changing taste of the consumers.
There has been a major shift in food habits in the metropolitan cities, about 79% of households prefer to have instant food due to steep rise in dual income level and standard of living and convenience.