Volume 25 – No.5 – August 2011
In this issue 4 President’s message 4 Chamber’s activities FFT on Land Acquisition Policies What works and what does not? All India Workshop on Indirect Tax Laws Inauguration of Foundation Course on Exim Procedures
All India workshop on Indirect Tax Laws – Hon’ble Minister for Agriculture S S Krishnamoorthy addressing.
Launch of United Nations’ Globally renowned Responsible Production framework
MCCI-MMA Video Discussion on One for All - The Meerkat Way
4 General Committee 4 Expert Committees 4 SPOT LIGHT
Hon’ble Justice V Sivasubramanian, Madras High Court, addressing.
Jawaharlal Nehru National Urban Renewal Mission
4 Policy Watch 4 Trade Fairs & Exhibitions 4 Economic Review
PRESIDENT’S MESSAGE
29th
has come to be recognised as a
and individual parties thereupon;
responsible and credible voice
to receive references on matters
of trade and industry in Tamil
of custom or usage in doubt or
Nadu and has worked closely
dispute, deciding upon the same
with the State Government in all
and recording the decision made
its initiatives for the growth of
for future references; and to form
commerce and industry in the State.
by that and other means a code of
It is a tribute to the able leaders of
practice whereby the transaction
the Chamber, who have steered its
of business by all engaged in it
affairs over this long period, that it
may be simplified and facilitated.”
has remained faithful to the vision
Before 1947, the Chamber was
Dear Members On
to communicate with Authorities
September
1836,
a
of its founding fathers.
largely British and oversaw the
I
business
opportunity
to
Madras
acknowledge the support and
Presidency, a vast region from
cooperation of all our members
Binny & Co. in Armenian Street.
Orissa to Kanyakumari. Chamber
- past and present- as also the
There were 18 men in attendance,
representatives had seats in the
people who have worked tirelessly
with the representatives of A, B &
Madras Corporation and in the
and selflessly over the years to
P dominating. From Arbuthnot’s,
Madras
make the Madras Chamber a true
were George and John Alves
Post-independence, the Chamber
Arbuthnot and William McTaggart,
made
from Binny’s came William Scott
Indian
Binny and James Scott and Parry’s
Anantharamakrishnan was the first
(at that time Parry, Dare & Co)
Indian Committee Member in the
was represented by John William
1950s and Mr. AMM Murugappa
Dare and the two Pughs – David
Chettiar became the first Indian
I look forward to welcome all of
and Joseph...It was unanimously
Chairman in 1965.
you at the Chamber Day.
under
It is the fascinating journey of
Best wishes
the designation of the Madras
this great institution-The Madras
Chamber of Commerce”.
Chamber
be
that
formed
in
“an
Legislative the
of
this
meeting was held at the offices of
resolved
fortunes
take
Assembly.
transformation
representation.
to Mr.S
Champion of Enterprise. It is indeed a rare privilege and honour for me to preside over this great institution at this historic juncture.
Association
Madras
of
Commerce
and
Industry- through 175 eventful The objectives of the Chamber as
years, that we celebrate this month
listed in 1836 were, “To watch
on Chamber Day, September 29th.
over and protect the interests
The history of the Chamber is in
of trade; to receive and collect
reality the history of business and
information on all matters of
enterprise in what was then the
mercantile interest bearing upon
Madras Presidency.
TT Srinivasaraghavan President
the removal of grievances and the promotion of common good;
Over the decades, the Chamber
1
CHAMBER’S ACTIVITIES 6th August 2011
in the last couple of years.
FFT on Land Acquisition Policies – What works and What does not?
He said FFT series was started last
With the increasing pressures on land due to urbanization, rapid economic development, increasing infrastructure
requirements,
etc.,
especially in a fast growing economy like India, the acquisition of land by the industrial establishments and
anniversary. In these series we have
Dr M Vijayabaskar, Asst. Professor, Madras Institute of Development Studies; and
discussed issues of contemporary
Ms Auxilia Peter, Advocate.
September and we are reaching its first
interest
which affect our lives as
members of the business community and as citizens of this county. On each of the topics we had selected, we had a great deal of interest, very positive feedback and this has what encouraged us to carry this forward.
Mr Ravindra Sannareddy: Addressing
the
gathering
Mr
Sannareddy said the basic economic problem that India is currently facing is how to allocate resources amongst unlimited uses. He described the problems of land acquisition in India
Government has increased. Mega
The subject of Land acquisition is very
as follows:
industrial projects like the SEZs,
emotive one and also which has multi-
industrial cities and townships are part
dimensional attributes. There are the
- L and acquisition for large projects
of the development process which
inevitable political arguments as well
have come to stay because of the
as the social dimensions. He referred
need for economy of scales, logistical
to the high profile land acquisitions in
and operational conveniences, etc. In
Singur and Nandigram in West Bengal
addition, the State welfare projects
as well as in Maharashtra. He said the
and common infrastructures also
governments have an explicable part
require substantial land area. All these
in land acquisition.
and more have necessitated land acquisitions in large scale.
in India often faces many problems and
opposition.
Reasons
include
– cultural affinity of Indians to the land; acquisition of fertile agricultural land under cultivation; inappropriate compensation;
compensation
rehabilitation and re-skilling of the
We have a legislation which is
people and environmental issues.
three centuries old and this piece
He referred to the following projects
of legislation still governs. There
processes are not uniformly smooth
are
everywhere.
property
productivity and usage of agricultural
rights, compensating development
land for factories to drive India to
- Nndigram in West Bengal
induced
ecological
the 21st century. What happens
- Tata Nano project in Singur,
issues and depriving agricultural lands
to the social dimensions? What
West Bengal
have become some of the issues of
happens to the people who have
concern in land acquisition.
been ejeted from their homes? How
Individual
displacements,
Chamber organized a discussion on the subject
at the Raintree Hotel
Anna Salai on 6 August. th
not
reaching the people; lack of proper
It is an open secret that these
It is against this background, the
questions
about
agricultural
which are facing land acquisition issues:
- Posco project in Orissa
are we going to address this issue of
- Reliance SEZ in
people giving up their homes and the
Raigad, Maharashtra
compensation that is being given to them? Is it adequate? These are some of the issues that need to be debated
These raised lot of debate on what Government is trying to do.
Welcoming the gathering, Mr T T
and he hoped that the new Bill on
He said the Rural Development
Srinivasaraghavan, President, thanked
Acquisition
Ministry has cleared a draft Land
the members and the invitees for their
these issues.
presence to discuss and deliberate on what is becoming an extremely important but also an emotive issue
2
Mr Ravindra Sannareddy, CEO, Sri City Pvt.Ltd.
will address some of
The programme was addressed by the following speakers namely:
Acquisition and Rehabilitation Bill for public comments. One of the highlights is that it has been proposed to give compensation of more than
CHAMBER’S ACTIVITIES six times of the current value.
been employed in Sri City SEZ in
He described the Ten Commandments
various positions like Security Guards,
followed by Sri City in acquiring land
Supervisors, workers in HRD Academy,
as follows:
Nursery, BPO and Road works. HRD
- It selected only low grade land
training has also helped people
- A dopted
particularly women in generating self
a
transparent
consent
based land acquisition process
employment.
- Compensated farmers on future land value (10 times of current value) - Implemented a clear programme for rehabilitation - A ddressed the unstated needs of the farmers – payment for trees, irrigation equipment and labour employed by the farmers - Retrained
agricultural
labour
to
industrial labour - Ensured that the industries generated - Demonstrated
long
term
power supply and distribution. It is
neutral. An exclusive Reliance Tower
the local people to suit the needs of
at Sri City has
the industries. People from 14 local
coverage to the area.
villages are benefitted by this and the academy provides free of cost training to the local people in vocational skills. Sri City also strives to find suitable jobs for these candidates through internal and external placements.
of Understanding with IL&FS Cluster
acquisition to address the genuine needs
While Sri City provides infrastructure
through
seats from the villages. There is stable
develop and integrate the skill set of
establish a Skill Development Institute.
villagers
of the total students are to be offered
making the entire region carbon-
Development
the
has been opened this June and 10%
The Sri City HRD Academy strives to
commitment of over 5-10 years after of
Chinmaya Vidyalaya School at Sri City
targeting to plant 10 million plants
Sri City has signed a Memorandum
employment for the locals
for horticulture.
Initiative
Ltd.
to
increased mobile
Prof. M Vijayabaskar: Prof. Vijayabaskar made a presentation on
Land
Acquisition
for
Public
Purpose: Emerging Trends and Issues in India. He said land though fixed has multiple demands
and
economic
growth
requires land use conversion. But growth should not undermine food security. Real estate is emerging as a key source of non-formal wealth.
sustained CSR initiatives
facilities, identifies training needs
- Ensured that the villagers’ socio-
based
economic growth is in sync with that
mobilizing
and
governance, he said, uncertainties of
of the industrial zone
facilitating placements, IL&FS Cluster
land titles, outdated and inaccurate
- Ensured that there is substantial
undertakes market assessment, course
land transaction records, inadequate
improvements in the socio-economic
identification, content development,
physical and institutional resources to
conditions
training and soft skills.
authenticate land titles etc., Involved
including
income,
education, medical care, infrastructure and safety of the villagers within two years of acquisition
on
units the
requirements,
candidates
As part of its agreement with the units, Sri City insists that each unit/ factory employ 10% of the locals
Describing the benefits to the country
irrespective of the literary levels.
he said
The special benefits offered by Sri City
the household incomes of
the people increased by 80% and the average wages by 30%; families now have multiple incomes leading to increase in family earning; earnings are
being
used
for
education,
marriages, clearing debts, purchase of assets, consumer durables, house improvements, etc. Large number of local people have
are hygienic food to all labourers/ employees at very subsidized rates and housing for entry level workers at low rentals.
On
land
markets
and
land
huge transaction costs in acquiring clear titles. Currently reforms are underway by way of computerization of records, and titling bill, etc. and these should help
in the coming
years. He also referred to the difficulty of land use conversion from agriculture to industrial or commercial and inadequate
dispute
resolution
It has created better living conditions
mechanisms of the judiciary. Hence,
for the people. There is no sewage let
preference is given for Government
out in the open or drained out as it is
Acquisition.
all treated and reused for cooling or
The advantages of land acquired by
3
CHAMBER’S ACTIVITIES the State were – security of property
compensation is
rights via clear (unencumbered) titles;
livelihood needs but on land prices.
it can be faster ad cheaper than private purchase. The
were
–
compensation is less than market tendency to use acquired
lands for commercial/residential than for productive activities; negative political
fall-out,
He referred to Japan and Singapore where there is effective support from
disadvantages
prices;
not based on
public
protests,
political unrest, legitimacy crisis of the State, etc.
She said the old Act of 1854 enacted by the British Government is followed by our Government as well without making any amendments.
local government and community for
According to the preamble of the
land use planning.
new Bill, she said this new Bill
Referring to the new National Land Acquisition and Rehabilitation and Resettlement Bill 2011, he said it needs to address the concerns of farmers, whose livelihoods depend on land being acquired for industrialisation;
will concentrate and
their
more on farmers
livelihoods.
would
concentrate more on rehabilitation and resettlement of the farmers. The Bill has been put on the Government website and comments are to be sent to the government by the 31st August
Tamilnadu is one of the most urbanized
land for public purpose but under
Sates in the country; Its economy has
private projects can be acquired only
grown much faster he said. However,
if 80 per cent of those affected agree.
There
growth of agriculture has been very
The Bill also seeks to redefine “public
Session. Reference was made to
slow in Tamilnadu. Tamilnadu ranked
purpose”. It also says acquirers must
Haryana package which is very
2nd highest in the country with low
also provide for social infrastructure.
attractive for farmers. Villagers are
returns on agriculture and high levels of indebtedness.
Ms Auxilia Peter: On the new Draft Bill of the Centre on
2011 she said. was
an
interesting
Q&A
being trained to get employment and once you provide incentives, things will definitely work.
The Government of Tamilnadu issued
Land Acquisition she said we need
a
GO in 1995 to negotiate with
not bother about the Bill as there is
There were queries on food processing
land owners directly and offer better
already Tamilnadu Land Acquisition
and waste land usage. The speakers
prices. It also passed the Tamilnadu
Act for industrial purpose. Land
said India requires lot of food storage
Acquisition of Land for Industrial
acquisition is in the concurrent list.
infrastructure. We are number one
Purpose Act in 1999.
The State need not follow the Central
in production of banana, grapes,
legislation. The State Government
mangoes, etc. However, our exports
can also propose some amendments
were very poor.
On compensation he said – this has been very inadequate. Due to this, families have been divided. Also,
in tune with the Bill that is being promoted she said.
FORTHCOMING PROGRAMMES
4
It
29th September 2011:
Chamber Day and 175th year celebrations
6.00 PM
Sheraton Park Hotel & Towers, T T K Road, Chennai
Chief Guest: His Excellency Dr. K Rosaiah, Governor of Tamil Nadu
8th October 2011:
World Habitat Day – Theme “Cities and Climate Change”
22nd & 23rd October 2011:
Job Fair
CHAMBER’S ACTIVITIES 19th & 20th August 2011
in tax laws, ambiguous rules and
Ramasubramanian,
All India Workshop on Indirect Tax Laws
procedures. Lot of our time is spent in
Court.
An annual flagship event of the
out against these and the harassment
Chamber, this two-day workshop was
meted out to honest tax payers. It is
held at Hotel Deccan Plaza. Hon’ble
not the rates of taxes that we have
Justice Mr V Ramasubramanian was
agitated but how the administration
the Chief Guest.
of indirect tax laws works. This is what
Welcoming the Chief Guest and
we have put forth to the authorities
Taxation in general, has a long history.
not only at the State level but also at
Inequalities in the matter of imposition
the Centre.
of taxes existed even in ancient Rome
the delegates, the President, T Srinivasaraghavan, said that
trying to decipher the final print and the Chamber has consistently spoken
Mr T this
Madras
High
He said MCCI is older than the Madras High Court – while MCCI celebrates its 175th year, Madras High Court is into its 150th year and as MCCI has retained its name “Madras”, the High Court too has retained its name.
and Greece.
workshop is the flagship event of the
As you would observe, the Chamber’s
Chamber and this is the 15th year
intention is not only to bring the
It’s interesting to note that taxes have
since the Chamber has been holding
best of practical knowledge to the
been a source of political controversy
this workshop.
This is something
participants but also affording us an
throughout history. History shows
which has grown both in terms
opportunity to gather your thoughts
that many taxes were introduced at
of its content and stature and has
and ideas and concerns so that we
war times.
drawn more and more speakers and
may summarise the same. GST has
participants.
been on the horizon for a long time
While Custom and Excise played a
He said Service Tax, VAT, GST, SEZ
and it is our hope that it will see the
procedures
etc.
pose
continuing
light of day fairly soon he said.
crucial role in the 19th century, Sales tax and its new avatar namely Value Added Tax have gained importance
challenges for all of us – small and large
Mr P R Subramaniyan, Co-Chairman
in the 20th century. While the 20th
companies as well as businessmen.
of the Expert Committee on VAT
century had its quota of cases from
We live with it every day, grapple with
presented the programme objective.
the sales tax and VAT regime, the 21t
it every day and this has become an
He said the MCCI has been playing
century is limping towards the Goods
integral part of our life. Hence the
a catalyst role and has been striving
and Service Tax.
continuity of this workshop year after
to remove the hurdles faced by
first introduced in Europe by France
year.
members.
in 1954 and thereafter adopted by
The Chamber has always been seen
He said members of the Chamber
and respected as a credible voice of
have strong revenue base for the
commerce and industry not only
State. Our members are tax abiding
in the State but across the county.
citizens.
We always espouse for
clean and
transparent business; we pay taxes when due and also follow CSR. It is equally true that tax revenues in the last few years have gone up considerably. This is an indicator of the prosperity of the economy. There is buoyancy in indirect taxation. What concerns our
Coming
He said VAT was
the Member States of the European Economic Community in 1967. 40 years ago, not more than 10 countries had VAT. Today, it is there in about 150 countries.
to
the
topics
of
the
workshop, he said both the Indirect Taxes Committee as well as the VAT Committee finalized the topics. These are very current as there are lot of issues arising from works contract, TDS, ITC, inter-State sale, SEZ, etc.
Chamber and about which it has been
The inaugural address was then
articulating is the lack of consistency
delivered by Hon’ble Justice Mr V
The benefits that are supposed to arise from the GST are : - Emergence of a single common market in the whole country - A simple tax structure with only few tax rates - Increased tax revenues due to wider tax base and better compliance and
5
CHAMBER’S ACTIVITIES - removal of inter-State barriers The primary objective of GST is (i) to bring together goods ad services under the same enactment (ii) to make available set off of tax credit in the whole supply chain and (iii) to introduce destination principle at all levels.
He said the GST which will
replace the State VAT, Central Excise, Service Tax and a few other indirect
and
more than one lakh crore. With the
address the participants. He made a
for
this
workshop
AIADMK Government presenting a
special mention of Mr V S Krishnan,
budget for over one lakh crore, the
IRS., Additional Director General,
State had also joined the list he said.
Directorate General of Central Excise Intelligence, Ministry of Finance who had given an update on GST. He said the Chamber is honoured to have the Hon’ble Minister to address the valedictory session.
taxes is expected to be a broad based,
Mr K Vaitheeswaran then briefly
single and comprehensive tax levied
detailed the issues affecting the trade
on goods and services.
and business which were discussed
Money, power and plenty will give all the happiness that you desire in the world. But one should believe that no one can come up in life in a very unethical way. No Government has been able to fund the process of thinking. Therefore think aloud he said. Mr K K Sekar, Co-Chairman of the Indirect Taxes Committee thanked the Hon’ble Justice for his brilliant and thought provoking address.
at the workshop – in particular, Entry tax, Cenvat credit, Special Economic Zone, Stock Transfer, VAT, GST etc.
parties, was still able to sustain the economic situation because of technocrats and ruling governments. He said because of Government’s encouragement
for Public Private
Partnership, today we have many universities,
engineering
colleges,
medical colleges, specialist hospitals etc. coming up in India.
tax credit, works contracts, goods v/s
corporates for their Corporate Social
services. The Minister assured that he
Responsibility. Many of them have
would take up these issues with his
been doing great service to the public
Government for remedial action.
at large.
Addressing the gathering the Minister
Mr P R Subramaniyan in his vote of
expressed
the
thanks thanked the Hon’ble Minister
Chamber celebrating its 175th year of
for his presence and for his erudite
service to trade and industry. He said
address.
the investments made by members of
Certificates
of
issued
the
his
happiness
at
sessions for the next 2 days wherein
industrial development of the State.
on a variety of subjects.
several cultures and various political
He
the Chamber play a major role for the
executives, addressed the participants
India, a democratic country with
He also pointed out issues in input
This was followed by the Technical Advocates, taxation experts, corporate
6
persons
also
to
complimented
the
participation
were
participants
who
numbered about 115.
He said the State Government faced difficulties
in
tax
collection
and
also incurred revenue loss with the
The valedictory session was held on
introduction of the Value Added Tax
the 20th August at which Hon’ble
system. He said under the VAT system,
Shri S S Agri Krishnamoorthy, Minister
Tax revenue compensation amount
for Commercial Taxes & Registration,
was Rs 4,011.80 crores and out of
Government of Tamilnadu was the
this the Centre had released only
Chief Guest.
Rs.3,361.36 crore.
Presiding over the valedictory session,
the CST, the Centre owed the State Rs
Similarly under
Mr T T Srinivasaraghavan, President,
6,497.62 crores.
said that the Chamber is fortunate
The States of Maharashtra, Uttar
to have several leading practitioners,
Pradesh and Andhra Pradesh were
lawyers, consultants, etc. as resource
known to present State budgets of
Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.
Albert Schweitzer
CHAMBER’S ACTIVITIES 20th August 2011
Udyayabhaskar Reddy, Chairman and
To launch the globally renowned RP
Inauguration of Foundation Course on Exim Procedures
Co-Chairman of the Expert Committee
Framework, ASSIST, in association with
on Logistics formed the faculty for the
the Madras Chamber of Commerce
first session.
and Industry organised a programme
As part of its 175th year initiative, the Chamber has embarked upon making
the
students
employable
The course being held on Saturdays for a duration of 3 hours will conclude at the end of November 2011.
Director, ASSIST,
25th August 2011
their studies. The Logistics Committee
Launch of United Nations’ Globally renowned Responsible Production Frame work
a dearth of talent in the logistics field while it offered great opportunities for employment specially from the Arts & Science stream. The first such course was inaugurated at the MOP Vaishnav College for Women and 50 final year MBA students have enrolled for the course which is of 3 months duration. Dr Lalitha Balakrishnan, Vice-Principal of the College formally welcomed the faculty and the students. Mr T Shivaraman, Vice-President of the Chamber, in his address said about the competitive business world and how everyone has to be kept abreast of the latest developments in all spheres. He exhorted the students to take advantage of the various extra curricular activities offered by the College. Mrs K Saraswathi, Secretary General of the Chamber spoke of the high quality of the faculty who in spite of their busy schedule had come forward to teach the students. They were from the logistics industry and had hands on experience and hence were in a better position to provide practical inputs to the participants. Mr J Krishnan, Chairman and Mr U
organisation’s
enterprises in Gujarat and said the tools it had designed for this project could be used in all types of industries.
approach designed by United Nations Environment Programme to build on
safety
spoke about the initiative, systematic
engagement to culture responsible
Responsible Production (RP) is an
capacity
25th August. Mr Srinivasa Narayanan, Managing
immediately on the completion of of the Chamber had felt that there is
at the Sheraton Park Hotel on the
management
ASSIST, a non-profit organisation, was prepared to train people and ready to partner with the Madras Chamber in this endeavour.
across an organisation’s value chain.
The Chief Guest for the evening
It engages businesses, supply-chains,
was Mr D Jayakumar, Speaker of the
distributors, traders and buyers in safer production, accident prevention and emergency preparedness. Using the RP framework, organisations can demonstrate their commitment to core Corporate Social Responsibility issues
such
as
:
environmental
impact reduction, workers safety, stakeholder engagement, community engagement
and
supply
chain
management. The CEO’s Forum on Responsible Production is an initiative funded by DEG/KFW and implemented by DQSUL MSS, a German certification body and Asia Society for Social Improvement and
Sustainable
Transformation
(ASSIST) an international non-profit capacity building organisation.
It
Tamilnadu Legislative Assembly. He said the “Responsible production framework” evolved under the United Nations Environment Programme will be of immense help to micro, small and medium enterprises (MSMEs). Tamilnadu being the hub of MSMEs with more than 15 per cent of such units in the country, it was imperative to
increase
their
awareness
on
environment and sustainability he said. Mr
Jayakumar
further
said
that
there was pressure on MSMEs to realize the terms “green” and “safe”. Climate change was a reality and that should be taken seriously. Similarly, safer
production,
awareness
and
preparedness at the local level were
aims to explore how RP framework
also essential.
can be mainstreamed in our rapidly
As it would be very difficult for such
growing economy and to showcase
small units to learn correct practices
its implementation in India.
on their own, the UNEP’s initiative,
7
CHAMBER’S ACTIVITIES which had brought out the best in
- Synergy – important for team work.
terms of safety and sustainability,
Synergy occurs when combined team
would be helpful.
works together. Combining talents is
As the Hon’ble Chief Minister was well aware of the importance of environmental protection, she had imposed a ban on plastic carry bags of less than 60 microns.
Pointing
out that she was determined to make Tamilnadu a global hub for automobile and automobile ancillaries manufacturing, he said she was evolving a strategy to attract more and more foreign direct investment.
New Delhi
- Respect your teammates –they are
14th - 27th November 2011
equally important to the team.
Techmart India 2011 – 19th
- Be
accountable
–
take
the
International Technology Fair
responsibility seriously and don’t let
organisd by NSIC (Stall details
teammates down
available with the Chamber)
- Communicate with your teammates - Learn from each other - Resolve conflicts amongst the team - Keep improving – there is always room for improvement - Co-operate – these species have
copy of an interactive “RP Toolkit”.
survived because they are world class
Chamber
Implementing
was
one
Partners
of for
the this
National
and one for all.
All the participants were given a free
The
team players
China Oct 15th - Nov 4th 2011 Canton Fair, 2011 Orbitz, Mumbai, handles India’s delegations to this Fair. More details can be had from Orbitz Tel:022-24102801094 (Mr Chintan Chheda)
- Respect others’ feelings
programme.
- One cannot be independent always
Macao 20th - 23rd October 2011
29 August 2011:
– we need to be inter-dependent - Believe that new people have to be
16th Macao International Trade &
trained and moulded so that they
Investment Fair
become assets in the long run
Malaysia
th
MCCI-MMA Video Discussion on One for All -The Meerkat Way: The monthly video discussion jointly being organized by the Chamber and MMA was held on 29th August at the Conference Room of the Chamber, the subject being “One for All – The Meerkat Way”.
- When we become mentors, we become good leaders - Define the roles properly in the team - Make
optimum
utilization
of
resources - Whatever job you do, do it with 100% commitment - Self discipline is important
live in inhospitable environments but
- Have trust in the people
work together to achieve their goals.
Mr. K Parasuraman, a motivational
how Meerkats never let down their group and were always there for one another. There were great learnings from this video and those present expressed their views as follows:-
speaker and management
training
consultant, was the faculty. The programme was attended by about 25 participants.
22nd - 24th November 2011 INTRADE Malaysia 2011
- Never under-estimate anyone
Meerkats are a type of animals who
The video was quite interesting to see
8
the essence of team work. All for one
Trade Fairs & Exhibitions
MCCI Conference Room The Chamber's Conference Room is available for hire. Ideal for meetings, interviews, etc. Has a seating capacity of 26. Charges: Full day - Rs 4000 (for members) Rs 5000 (for non members) Half day - Rs 2000 (for members) Rs 3000 (for non members) LCD Projector - Rs 1000 (full day) Rs 500 (half day) For details: Contact Mrs J Edwards Tel: 24349452/24349871 or Email: jessie.edwards@madraschamber.in
GENERAL COMMITTEE 20th August 2011
A number of new initiatives have been
3 Businesses should promote the well
GENERAL COMMITTEE
identified by the State Government
being of all employees
Before the commencement of the
improving
meeting, the members observed a
situation and initiatives for renewable
minute’s silence in memory of Mr K
energy sources, road connectivity,
V Shetty, Director, IP Rings Ltd., and
port issues, land acquisition policy
former President of the Chamber who
and setting up a skill development
passed away recently.
centre.
Discussing about the progress of
National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business – Circular from Ministry of Corporate Affairs.
the Sill Development Initiative, the President said that Mr D K Pradhan has been appointed as the COO. He has relevant experience in the field and his appointment augurs well for the Skill Development Centre.
for the development of infrastructure, the
economy,
power
4 Businesses should respect the interest of and be responsive towards all stakeholders especially those who are disadvantaged, vulnerable and marginalised. 5 Businesses should respect and promote human rights 6 Businesses should respect, protect and make efforts to restore the environment 7 Businesses when engaged in
Members noted that the MCA has
influencing public and regulatory
revised
policy, should do so in
Voluntary
Guidelines
on
Mr Pradhan was introduced to the
CSR with a more comprehensive
responsible manner
members. Mr Pradhan said he was
set of guidelines that encompass
the Correspondent of C-PAT for the
social, environmental and economic
8 Businesses should support
last 5 years. He said the Chamber’s
responsibilities of business.
initiative would be to develop a Skill Development Centre
which would
cater to the needs of the community and the industry. He added that he has been working on many proposals along with the Secretary General and has been in touch with many agencies. MSME has extended all cooperation. Similarly Everonn and NTTF have also offered their help. Our aim is to stand on our own he said.
Tamilnadu State Budget 2011
The
Guidelines
emphasize
development that
businesses have to endeavour to become responsible actors in society, so that their every action leads to sustainable growth and economic development.
Accordingly,
inclusive growth and equitable
the
Guidelines use the terms “Responsible Business” instead of CSR as the term
9 Businesses should engage with and provide value to their customers and consumers in a responsible manner. Members felt that though these were voluntary for the time being, these will be made compulsory in the days
Responsible Business encompasses
to come.
CSR.
Mr Srinivasan K Swamy suggested
The Guidelines have been articulated
that the Chamber may recommend
in the form of nine principles with the
these guidelines to its members.
The President informed the Members
Core Elements to actualise each of the
that
principles. The 9 Principles are:
Chamber Day – 29th September 2011
1 Businesses should conduct and
Members were informed that Mr
govern themselves with ethics,
Dilip
transparency and accountability
had confirmed his participation. The
features announced in the Budget
2 Businesses should provide goods
British High Commissioner in India,
relating to Commercial Taxes except
and services that are safe and
the introduction of the Samadhan
contribute
Scheme.
throughout their life cycle.
the
newly
formed
State
Government presented the Budget on 4th August. Since the VAT rates had been revised before the Budget announcement, there were no special
to
sustainability
Modi,
President,
Assocham
Sir Richard Staggs has been requested to be the Guest of Honour and his confirmation is awaited.
The CM
of Tamilnadu has been requested to
9
GENERAL COMMITTEE be the Chief Guest.The matter was
President requested the members to
being pursued further.
take part in the Job Fair to meet their
Members suggested that a curtain raiser with the press be convened a day before the Chamber Day.
advertisement should be placed in The Hindu on 29th September. also
suggested
were
admitted as members: Dynamic Netsoft Solutions India Pvt.Ltd.
Back cover (4 colour) - Rs 4500 per
insertion
Full page (inside) 2 colour -
Rs 3000 per
insertion
Business: Software
Committee of Hosts be formed to
implementation
sponsor the dinner on Chamber Day.
and development
MCCI - Port Study – Draft Report
Ethical Intelligent Technology
For details contact : Mrs J. Edwards
LLP
Tel: 24349452/24349871 or
Business: Software development
Email: jessie.edwards@
and products
madraschamber.in
Consultants
(MCG)
that
have
submitted the draft report. There was a discussion on this report and the Chamber has given them
Magtaan Travels & Holidays
some suggestions which will be
Pvt.Ltd.
incorporated and the final report will
Business: Travel management
be submitted within 15 days.
Engineers Pvt. Ltd.
released on the Chamber Day but the
Business: Project design, detail
conference could be held in October.
engineering, drafting services
The Committee was informed of the
FDI in Retail Sector
Chamber as well as the forthcoming programmes. On
It was brought to the notice of the
informed that this will now be held on
should such a policy be implemented.
recruitment. Mailers have been sent to all the members. Jaya TV will take care of publicizing
1/4 page Vertical
Full page
1/4 page Horizontal
1/2 page
Artwork layout
Document colour mode must be in
is going to hurt the companies badly
get enough opportunities for campus
insertion
by Assocham calling for suggestions.
organized by MCCI & Jaya TV, it was
to the students who otherwise do not
Rs 2000 per
specifications
Members felt that FDI in retail sector
the event is to provide an opportunity
2 colour -
Committee the recent circulars sent
Job Fair 2011 jointly to be
22nd and 23rd October. The objective of
Half page (inside)
Gulf Consult Designers &
It was felt that the study may be
various programmes held by the
The Committee felt that the Chamber
CMYK for Colour ad and in Greyscale for B/W. Document must be submitted in EPS
should get a retail expert to go
or editable PDF format with all fonts
through the circular and prepare
and logos outlined in Vector format
a representation to be sent to the
or fonts must be supplied separately.
Government at the earliest.
Images must be in CMYK with a resolution of 300 dpi at their final
the event among the students and
in TIFF,2011: EPS, 4thsize August
our responsibility is to bring industry
Company Law/Corporate Matters:
participation.
10
companies
insertion
Inside front/inside
a
The
was
following
Back cover (4 colour) - Rs 5000 per
New Membership The
It was felt that a Quarter Page
It
recruitment needs.
Advertisement Tariff
High resolution PDF or JPG format.
EXPERT COMMITTEES 4th August 2011
have conference facility centres at least
COMPANY LAW/ CORPORATE MATTERS
in top 5 States / Union Territories in India where a maximum of at least 1000 members reside.
Ms.Chandra made a brief presentation touching upon various circulars issued recently.
She pointed out that the
circulars issued from time to time by MCA and certain legislations, rules, provisions etc. are not in line with the Income Tax Act and SEBI Act.
of
circulars
is not possible for Indian corporate to adhere to this. Conducting meetings at 5 places would be practically difficult and would be expensive. MCA should make this proposal only optional and not as mandatory.
The presentation covered the following : I mpact
The Committee felt that practically it
under
the
Companies Act – Section 641 & 642 - SEBI Act – Section 11(1)
• Waiver
of
Central
Government
• Circulars on Managerial Remuneration
Dynamic Netsoft Solutions
approval for payment of remuneration
India Pvt.Ltd., Chennai
to professional managerial person –
Business: Software implementation
Circular No.46/2011
• Section 119 of the IT Act
A warm welcome to our following new members:
and development
MCA has issued the above circular to dispense with Central Government
Ethical Intelligent Technology
• Revision of Section 314 limits
approval for payment of remuneration
• Director’s Relative (office of place of
to
LLP., Chennai
profit) Rules 2011
Holding a few shares cannot be
Business: Software development
• Schedule VI and XBRL
construed as having direct or indirect
and products
• Green Initiative – 27&28 of 2011
interest in the capital of the company.
• Digital certificates by ROC – 29 of
Professional managers are also given
2011
ESOPs. It is hence necessary to prescribe
• Cost Audit
a threshold limit clearly and explicitly for
• Companies Cost Accounting Records
availing the exemption facility.
– Circular No.4/2011
Rules 2011
managerial
person.
• Green Initiative:
• Name availability –new guidelines
Corporates to send Annual Reports and
• Liquidation After the presentation and interaction, the
professional
Committee
decided
that
the
Chamber should make a representation on the following and bring the same to the notice of MCA for their consideration. • Participation
by
shareholders
in
General meetings under Companies Act 1956, through electronic mode – Circular No.27 of 2011
other communications to shareholders in soft version. The Chamber also to suggest to the regulators that
Business: Travel management
Gulf Consult Designers & Engineers Pvt.Ltd., Chennai Business: Project design, detail engineering, drafting services
in newspaper and host the full text in their websites. The Committee was informed that the proposed Seminar on Cost Audit will be held on 10th September. The Committee also suggested to have a session on SEBI Takeover Code, if
conference
possible on 10th September, inviting
for
Pvt.Ltd., Chennai
corporate publish only brief highlights
MCA has permitted the use of video facility
Magtaan Travels & Holidays
shareholders
meeting. Companies are required to
Mr.Achuthan as Chief Guest.
11
SPOTLIGHT
JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION Jawaharlal Nehru National Urban
with
Renewal Mission is a massive city
Amendment Act, 1992.
the urban towns and cities by
modernisation scheme launched by
Backdrop
developing infrastructure, municipal
of Urban Development. It envisages
The JNNURM project is a project
Governments and the Urban Local
a total investment of over $20 billion
aiming at the redevelopment of India’s
Bodies (ULBs), in order to develop
over seven years. It is named after
cities. This is quite a unique step
urban India. As per the information
Jawaharlal Nehru, the first Prime
considering the planning ideologies
in the JNNURM mission brochure as
Minister of independent India. The
of India. Till date India was primarily
launched by the Authorities, cities and
scheme was officially inaugurated by
focused on the development of rural
towns account for 30 percent of the
the Prime Minister, Manmohan Singh
areas. India’s comprehensive network
country’s population, contributing 50
on 3 December 2005 as a programme
of underdeveloped villages required
– 55 % of the Gross Domestic Product
meant to improve the quality of life
such development.
(GDP). The degrading conditions of
and infrastructure in the cities. It has
As per the 2001 census, India is home
the cities have forced the Government
Government of India under Ministry
two sub-missions:
74th
Constitutional
taken up the initiative to redevelop
reforms and providing aid to the State
to more than a billion people, making
to rethink their strategies in order to adhere to the socio-economic
Urban
it one of the most densely populated
Governance
areas of the world after China.
objectives of the country.
administered by the Ministry of Urban
However it was also estimated that
Mission Objectives:
Development, with a focus on water
70% of India’s population lies in rural
supply and sanitation, solid waste
areas. However urban India is fast
management, road network, urban
growing but sometimes in unplanned
transport and redevelopment of old
ways. India is benchmarked to be the
city areas.
next superpower. India even held a
1. the
Sub-Mission
Infrastructure
and
for
2. the Sub-Mission for Basic Services to the Urban Poor (BSUP) administered by the Ministry of
Housing and
Urban Poverty Alleviation with a focus on integrated development of slums.
• Focused
attention
integrated
development
infrastructural services in
to of the
cities covered under the Mission.
steady growth rate during the recent
• Secure effective linkages between
recession.
asset
However,
unplanned
creation so
and that
asset
growth has taken a toll on urban
management
the
India, especially due to problems in
infrastructural services created in the
the agricultural sector in rural India.
cities are not only maintained
Hence, the rising population due to
efficiently but also become self
JNNURM is huge mission which
migration from rural to urban cities
sustaining over time.
relates to urban development in
as well as other factors have also
the Indian cities. JNNURM aims at
contributed to the increase of slums
creating
productive,
in the cities and degradation of cities
efficient, equitable and responsive
due to lack of planning has also taken
Cities’ by a strategy of upgrading the
place.
‘economically
social and economic infrastructure in cities, provision of Basic Services to Urban Poor (BSUP) and wide-ranging urban sector reforms to strengthen municipal governance in accordance
12
the
Inadequate
• Ensure adequate investment of funds to fulfill deficiencies in the urban infrastructural services. • Planned development of identified
infrastructure,
rising
population rates as well as rising urban poverty are also major causes to the degradation of the cities. Hence the Government of India has
cities including peri-urban areas, out growths, urban corridors, so that urbanization takes place in a dispersed manner. • Scale up delivery of civic amenities
SPOTLIGHT and provision of utilities with
programme calibrated suitably.
35% in the largest cities to up to 90%
emphasis on universal access to
Implementation mechanism
in cities located in the Northeast. Most
urban poor. • To take up urban renewal programme, i.e., re-development of inner (old) cities area to reduce
congestion.
Duration of the Mission The duration of the Mission is of a period of six years beginning from December 2005-06 up to end 2011. During this period, the Mission will seek to ensure sustainable development of select cities. An evaluation of the experience of implementation of the Mission would be undertaken before the
commencement
of
Eleventh
Five Year Plan and if necessary, the
cities receive grants covering 50% or 80% of costs depending on the size
The funds are channeled through
of the city.Capacity building is also
state-level
where
included in the mission to assist urban
grants from the Central and State
local bodies to prepare strategies and
governments are pooled and passed
projects.
agencies,
on as grants or soft loans to cities provided that they have prepared city development strategies and that the investments identified fit within these strategies. The mission emphasizes transparency and accountability. It supports public-private partnerships and cost recovery to make service providers financially self-sustaining. The share of grant funding by the
Currently, ten projects are being covered by JNNURM funds covering road network, storm water drains, bus rapid transit system, water supply, solid waste management, sewage treatment, river and lake improvement, slum improvement and rehabilitation under its scope..JNNURM is currently being implemented in 63 cites.
central government can vary from
JNNURM in Tamil Nadu Three (3) cities are covered under the Urban Infrastructure & Governance (UIG) component of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the State of Tamil Nadu. 52 Projects have been sanctioned for the three Mission cities in the State of Tamil Nadu as per details below:
Sector
Chennai
Madurai
Coimbatore
Total
13
5
2
20
2
1
1
4
16
1
1
18
Roads/flyovers
3
0
0
3
Storm water Drains
4
1
1
6
Heritage
1
0
0
1
39
8
5
52
Water Supply projects Solid Waste Management Underground Sewerage
Total
The Tamil Nadu Urban Finance and Infrastructure Development Corporation Limited is the Nodal agency for the submission on urban infrastructure and Governance under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and for the Urban Infrastructure Development Scheme for small and medium Towns (UIDSSMT) The Commissioner of Municipal Administration is the nodal agency for the submission on basic services for the urban poor under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and for Integrated Housing and Slum Development Programme (IHSDP).
13
SPOTLIGHT
JNNURM – A Balance Sheet (JAN 2011) (Article by Mr M. Ramachandran, Former Secretary, Urban Development, Government of India) Five years ago, the Prime Minister
and it was high time that a push
and introduction of property title
launched
the
Jawaharlal
Nehru
for these came from somewhere.
certification. The fourth category of
National
Urban
Renewal
Mission
There may not be any other flagship
reforms aim at financial sustainability
(JNNURM), calling it the single-largest
programme that walks on the two
such as levy of reasonable user
initiative of the Government of India
legs of reforms and funds for projects.
charges and city-wide property tax
for a planned development of our
And this stands out as a unique
coverage and collection.
cities. This unique, Rs 50,000-crore
feature of the urban programme.
(subsequently enhanced to Rs 66,000
years
of
implementation and with only little
74
over a year left for the mission’s
transfer
completion, the harsh reality is that
of city planning function to the local
while a moderate implementation of
bodies, administrative as well as
reforms has taken place, many States
structural reforms and encouraging
and cities lag behind in completing
PPP, all to be undertaken by State
milestones, thereby raising questions
governments,
of
as to how seriously are the States
municipal bylaws and provision of
committed to these much needed
basic services, to the urban poor to be
reforms and with such delays and
implemented by the city bodies. The
somewhat lack of seriousness, will
second category of reforms is process-
our cities be able to move in tune with
oriented and citizen-responsive such
the huge requirements of today and
As the mission has covered five years
as adoption of double entry system
tomorrow.
and only 14 months remain for its
of accounting, introduction of the
completion, it should be worthwhile
system of e-governance, both to
to take stock as to where we stand
be taken up by the local bodies,
with regard to implementation of the
whereas rationalisation of stamp duty
23 reforms, worked out in consultation
to a uniform 5% across the country,
with the states and committed to by
enactment of public disclosure and
States and cities through memoranda
community participation laws are the
of agreement to be implemented
State mandate.
focuses mainly on 65 mission cities with provision kept also for other small towns. While the mission, to quote the Prime Minister, has to walk on the two legs of improved urban infrastructure and improved urban basic services, the role of governance reforms should be to catalyse the process that enables both these to move forward.
as per periodic milestones agreed. The reform agenda, covering four broad areas like governance, citizenresponsive and process-oriented, land and property-related and financial, was widely welcomed because before the mission, the cities were not in a position to take up these muchneeded reforms even if they wanted
14
five
th
over seven years from 2005 to 2012
reforms
about
cover
crore) programme to be implemented
Governance
After
implementation Constitution
of
the
Amendment,
and
revision
Overall, while States like West Bengal, Maharashtra,
Madhya
Uttar
and
Pradesh
Pradesh,
Kerala
seem
to have made good progress in keeping up with timelines for reform implementation, progressive States like Andhra Pradesh, Karnataka and Gujarat do not qualify to be in this
Land and property related reforms
list because they lag behind in respect
cover reform of property tax and
of one reform namely rent control or
earmarking at least 20% to 25% of
community participation legislation. A
developed land for weaker sections,
State like Tamil Nadu could not meet
both to be done at the city level,
the stamp duty rationalisation target
whereas the State has to take steps
and amending the rent control law
to introduce computerised process
as well as legislating for community
of registration, repeal of urban land
participation.
ceiling, amendment of rent control
SPOTLIGHT
Among
reforms,
community
have been in the forefront in terms of
far for the 65 mission cities costing
participation legislation, rent control
better service to the citizens, seems to
about Rs 60,000 crore, only 81 have
amendment and transfer of city
have taken a back seat, with as many
got completed so far, that too in
planning function appear as the most
as 32 cities failing to adhere to this
only eight states, maximum being in
‘complicated’ ones for implementation
timeline. It does not seem justified
Gujarat (27 out of 70 projects). Three
to the States as 18, 15 and 14 States
that as many as 12 States including
cities, namely, Panaji, Jamshedpur
respectively have not been able to
Punjab could not so far legislate on
and Porbunder, have still not been
meet this reform milestone.
public participation.
able to come on board as far as
Among cities, Hyderabad and Vizag in
Many of the concerns raised by the
Andhra Pradesh; Ahmedabad, Rajkot,
PM in his launching address may
Surat and Vadodara in Gujarat; Bhopal
continue to remain so if states and
It is time for the NDC appointed group
and Ujjain in Madhya Pradesh; Pune
cities do not make a focused effort to
of Chief Ministers to have a hard look
and Nanded in Maharashtra; Chennai
implement the huge balance reforms
at how best to complete the reform
and Coimbatore in Tamil Nadu; Kolkata
during the remaining part of the
agenda by March 2012, for the State
and Asansol in West Bengal; and
mission. If the present pace continues,
CMs to personally guide the process
Allahabad in Uttar Pradesh have been
an enhanced JNNURM allocation
of reform completion and for the city
able to perform well. At the other end
during the forthcoming Twelfth Plan
residents to actively get involved to
of the scale are cities like Ludhiana,
could become a casualty.
see to it that their cities reform and
Mathura, Ajmer, Shillong, Jabalpur and Itanagar. What is causing concern is that e-governance, which should
Along with reforms, we also need to keep in mind that out of the 527
getting at least one project approved is concerned.
rise up to the expectations of the path-breaking mission.
infrastructure projects sanctioned so
BELT CONVEYOR TECHNOLOGY Book by THEJO ENGINEERING
This Book was released at a Seminar organised by MCCI recently. The publication split into five sections contains the following: Section I
Conveyors - Basic information
Section II
Cold Vulcanising processes
Section III
Splicing Conveyor Belts with Textile plies by hot vulcanization process
Section IV
Splicing and repairing of steel cord belts
Section V
Dust and Pollution - Management and Control, Suppression, Separation and extraction of dust
15
It is a one point reference for all conveyor related information. It has covered all the essential subjects right from conveyor designing to conveyor maintenance with all relevant design calculations being explained very effectively. Price: Rs 4100/- per copy. For copies please contact: Mrs J Edwards, Deputy Secretary, MCCI Tel: +914424349871 Email: jessie.edwards@madraschamber.in
PROCEDURE FOR E-PAYMENT OF CUSTOMS DUTY In continuation of its efforts for trade
by him through ICEGATE, then he can
transaction. The VERIFY option must be
facilitation, CBEC has now implemented
make e-Payment by entering the IE code
exercised on the date of payment itself,
centralised application called Indian
of the importer. The CEG will display all
and the option would be de-activated
Custom
and
the unpaid challans against the IE Code.
the next day.
E-payment facility has been extended to
(f) On selection of the Challan the
(l) After e-payment is made at CEG,
all ICES locations from more than one
user will be shown the options of the
ICEGATE
authorized bank.
“designated” banks for the purpose
particulars to the ICES. Thereafter, the
the
of E-payment. The user can select any
Bill of Entry shall automatically move to
E-payment facility must approach the
bank authorized for e-payment at the
the examination queue.
designated bank at the location for
Customs locations;
(m) The importer / CHA need not
opening an INTERNET Account ( see
(g) Thereafter, the user will see the web
produce any proof of payment for the
Annexure).
page of the selected bank. He would
clearance of goods in case of e-payment.
EDI
(a) Person
(b) The
system
desirous
Centrral
(ICES.5)
of
Board
availing
of
Excise
send
the
payment
be required to login as an “Internet
However, he is advised to keep the copy
and Customs has set up a Custom
Customer” of the bank.
of the cyber receipt with him for future
E-Payment Gateway (CEG) at ICEGATE
(h) After successful login in the bank
reference for his own convenience.
(www.icegate.gov.in). The users who
site, the user will be shown the details
(n) In case of problems in e-payment, the
are already registered with ICEGATE will
of the challan including the amount to
Importer/CHA can contact the ICEGATE
automatically be able to avail the facility
be paid. The user shall be prompted to
24 hour help desk by phone at toll free
of e-Payment as REGISTERED USER
confirm the payment option.
no. 1800 – 3010-1000 or by email at
(i) On successful payment, a cyber
icegatehelpdesk@icegate.gov.in
receipt will be generated by the bank for
can also contact the Systems Manager/
successful transaction. Then user may
AC (EDI) at Customs Location, in case of
take the print out of the cyber receipt for
any difficulty.
without any further registration process. However, even the users who are not registered with the ICEGATE can avail e-payment facility as an UNREGISTERED USER.
They
his reference. The bank will prompt the
(c) In the ICEGATE home page, a person
Annexure
user to come back to the CEG (Customs
can select the e-payment icon from the
A-Payment Account opening procedure
E-Payment Gateway) after completion
main menu or if the person is using
1 To fill up Bank account opening forms
of the bank transaction.
2 Memorandum of Association
any other module of ICEGATE (like document filing), he can select the e-Payment option from the side screen menu. (d) On selection of E-payment option, the e-Payment page will open. The users already registered with ICEGATE
can
login with their user name and pass word as REGISTERED USER. Thereafter, their (personal) web page would open which will display all the unpaid challans details for the Bills of Entry filed by him;
(j) The
user
must
come
back
to
3 Articles of Association
the ICEGATE site to complete the
4 Certificate of Incorporation
transaction.
5 Board Resolution to open a/c
(k) In
the
case
of
an
incomplete
6 Commencement Certificate in case of
transaction or the link failure, a VERIFY
Public Ltd.
option is automatically activated against
7 List of authorized signatories along
the concerned challan for verification
with PAN card, photograph
of the duty payment details. In case of
8 IEC code copy
incomplete transaction, the Importer/
9 Address proof
CHA must go back to ICEGATE
10 For Public Ltd., signature to be
and
select the VERIFY option against the
verified from Principal Bank A/c
challan. On selecting the VERIFY option,
Photo copies of all above documents
(e) If the person is an UNREGISTERED
the importer/CHA is taken back to the
to be produced with original for
user, or he intends to make payments
site of the Bank for completion of the
verification.
of duties on the documents not filed
16
will
INDUSTRIALIZATION OF CHENNAI Sriram V gives Nandini T Reddy a sneak preview into his latest book that talks about this city’s journey into the world of industrialization. Chennai has evolved from being ‘just
harbor campaign began in the 1860s
another metropolitan’ to a city that is
and the MCCI had to face oppositions
one of the most industrialized sections
from many quarters, including the
of India. With the presence of large
Calcutta Port Trust, industrialists in
national and International industries,
Britain and several other sections
Chennai has grown to become the
who did not wish for the port to be
hub for automotive, electronics and
started in Madras. After a long battle
software industry. This development
against opposing parties and battling
reports Sriram. There are several such
was only possible due to the untiring
the damages to construction due to
facts and interesting historical events
efforts of a 100 years old forum –
constant cyclones, the port was finally
that have been described through the
the Madras Chamber of Commerce
commissioned for operation in 1910”
book.
and Industry (MCCI). Sriram V in his
says Sriram, adding, “It was because
latest book talks about the journey
of this very port that during World
of this prestigious chamber that
War II, the army was able to supply
has
goods to its troops posted in East
contributed
greatly
towards
the development of the city and its surrounding areas.
Asia.”
If
you
are
development
curious and
about
the
industrialization
of Madras over the 100 years then this is definitely the book to explore. It
is
currently
tentatively
titled
The MCCI is the second oldest and
‘Championing Enterprise’ and will
“The MCCI has borne witness to the
largest chamber of commerce in
be on the stands in September this
industrial development of the entire
India and the people and industries
year. Sriram’s previous works include
region since 1836, the year of its
of the Chennai region today have
critically – acclaimed and popular
inception. It was responsible for the
the benefits of good roads and
titles such as The Devadasi and the
industrialization of Madras Presidency
foreign industrial investment primarily
saint – The life and times of Bangalore
which extended to parts of Orissa,
through the efforts of the august
Nagarathnama, Carnatic Summer –
Andhra Pradesh, Karnataka and Kerala
body. Sriram also talks about the
The lives of 22 exponents of Carnatic
during the pre-independence period,”
various industry veterans such as
Music and the most popular 50
elaborates Sriram.
Parry, Gordon Woodroffe and Best
Historical Homes, a bilingual release
& Crompton who started their firms
in 2008.
The book details the journey and various incidents which the MCCI has championed over a 100 years to ensure that Chennai becomes the industrialized and business friendly city that it is today. Of the several incidents mentioned in the book, a particularly noteworthy one is about how the MCCI championed the cause of creating a port for Chennai. “The
with the associations of the Madras Chamber of Commerce and Industry.
Article Courtesy:
The book details several interesting facts like how the area of Avadi got its name. “Avadi is actually short for Armoured Vehicle Depot. Short not in English but when written in Tamil the abbreviation reads ‘Avadi’. That’s where the area gets its name from.”
17
POLICY WATCH RBI prescribes Rs. 500 crore minimum capital for new Private banks
Impressing upon the need for more flexibility, Mr Sharma urged ASEAN member countries to reciprocate with
The Reserve Bank of India released
shareholding at 49 per cent.
Regulatory framework for realty sector suggested Consumers should be protected from unfair trade practices
“New banks will be set up only
The Competition Commission of India
through
non-
(CCI) recently said that the Centre and
operative holding company (NOHC)
the State governments should come
to be registered with the Reserve bank
out with a regulatory framework for
as a non-banking finance company
the realty sector to protect consumers
which will hold the bank as well as
from unfair trade practices.
all other financial companies in the
The absence of any single sectoral
promoter group” the RBI said in its
regulator to regulate the real estate
draft guidelines.
sector in totality, so as to ensure
Push to FTA on services with ASEAN
adoption of transparent and ethical
the draft guidelines for licensing of new banks in the private sector. The norms stipulate a minimum capital requirement of Rs 500 crore and limited the new banks’ non-resident
a
wholly
owned
Seeking to put the India-ASEAN free trade agreement on services on the fast track, India impressed upon the negotiators to step up efforts and
business practices and protect the consumers,
has
only
made
the
situation in the real estate sector worse said CCI in an order against DLF.
conclusion of an FTA in services and
New National Policy on Education coming
investments.
The
Prime
For India, the services sector is crucial
on
setting
as it contributes nearly 55 per cent to
Commission to make suggestions
its GDP. The Economic Ministers of
for
the ASEAN, including the Commerce
education.
and Industry Minister, reviewed the
expected to be headed by an eminent
progress of the FTA talks on services
educationist, assisted by experts from
and investment agreement at the
the fields of higher, technical, medical,
ASEAN Economic Ministers meet at
secondary, elementary, vocational and
Manado in Indonesia.
other sectors of education. It will also
show greater flexibility for an early
Both India and the ASEAN have already inked FTA in goods and are engaged in intense negotiations to expand this pact to include services and investments.
18
improved offers.
Minister up
an
announced Education
improvements at all levels of The
Commission
is
have inputs from the reports of the National Knowledge Commission, the Yashpal Committee and the Valiathan Committee.
Cabinet Nod for XII Plan Approach Paper The Union Cabinet on 15th September approved the Approach Paper for the XII Plan (2012-17) which has sought to raise the annual economic growth rate to 9 percent during the five year period, up from 8.2 per cent estimated in the current 11th Plan. The Cabinet approval has paved the way for the Approach Paper to be placed before the National Development Council for final approval on October 15th or 16th.
RBI Hikes Key rates to contain inflation Rising inflationary expectations remain a key risk. In a move to contain persisting inflationary pressure, the Reserve Bank of India hiked the indicative short term policy rate (repo rate) by 25 basis points from 8 percent to 8.25 per cent with effect from 16th September 2011. “With the likelihood of inflation remaining high for the next few months, rising inflationary expectations remain a key risk. This makes it imperative to persevere with the current anti-inflationary stance” said RBI while increasing the rates. The Central Bank raised rates for the 12th time since March 2010.
Kind words can be short and easy to speak, but their echoes are truly endless.
Mother Teresa
ECONOMIC REVIEW
ECONOMY Indian GDP growth slows to 7.7% India’s exports for July up by staggering 82% Food inflation back to double digits zone after 5 months India’s core industries output growth up 7.8 percent in July, fastest in 15 months. Global manufacturing likely to decline this year: UN report
INTERNATIONAL Global Manufacturing Output plummets to lowest since June 2009 Brazil surprises with its key Interest Rate cut South Korea’s inflation rate surges to 3-year high of 5.3% in August; Sharp fall in trade surplus BCC cuts UK economic growth forecast for third time in 2011
ECONOMY
from the same period last year. The
surprising given the high base-effect.
decline is pronounced in sectors like
Similarly, the services sector
also
mining, quarrying and construction
showed some improvement
and
where growth fell sharply from over
entered back to double-digit growth
India’s economic growth, as measured
7 percent each during the previous
of 10.0 percent as compared to 8.7
by the Gross
year, to less than 2 percent now.
percent rise in the previous quarter.
Indian GDP growth slows to 7.7% Domestic
Product
(GDP) slowed to 7.7 percent in the first quarter, down from 8.8 percent in the corresponding period of the previous year, according to official figures released by Central Statistical Organization (CSO). For the period of April 2011 to June 2011, which constitutes the first quarter (Q1) of India’s fiscal year 2011-12, the GDP growth is also the lowest in the past six quarters. The economy had grown by 7.8 percent in the January-March
The weakening in GDP growth was mainly due to dismal performance of the Industrial activity. The growth by
GDP
the big though
drag
on industry, even
manufacturing growth fell
more moderately
to
7.2 percent
and growth in electricity, gas and water supply
actually accelerated
has
fallen
a huge four percentage points
during the quarter to 5.1 percent
Though the services growth was impressive over the previous quarter, it was actually moderated below the level of 10.4 percent growth that it registered during the same quarter of the previous fiscal year.
to 7.9 percent. The various mining
The
scams and the drop in infrastructure
growth could be attributed to weak
and
performance
real
estate
investment
are
decline
in
services
in
sector
government
as
major contributors to the industrial
well the strategic business services.
slowdown.
During the quarter ended June 2011,
However, the Agriculture continued
quarter of 2010-11.
rate of industry
These two sectors have represented
its run of good growth and grew by 3.9 percent during the quarter under review, compared to 2.4 percent in the same three-month period last year. The moderation in number as compared to 7.5 percent growth in previous quarter was not altogether
government services growth slowed down
to
5.6
percent
from 8.2
percent in the same quarter of 201011. Growth of the strategic business services also slowed to 9.1 percent from 9.8
percent.
However,
the
traditional business services, which accounts for the major share of the
19
ECONOMIC REVIEW services sector, grew remarkably by
and the valuables, components of
for the current fiscal. Recently, the
12.8 percent as compared to 12.1
expenditure side of GDP have also
Prime Minister Economic Advisory
percent during the same quarter of
been revised, accordingly. Industrial
Council (PMEAC) has announced the
2010-11.
production
component
beginning of a downward revision of
of calculating overall GDP. In June,
the economic growth forecast from
according to this report and other
9 percent to 8.2 percent.
reports, the
India’s exports for July up by staggering 82%
On the expenditure side, spending was most impacted. Growth in private final
consumption
expenditure,
which forms a bulk of the GDP and represents
the average person’s
spending, fell to 6.3 percent from 9.5 percent
during
the previous
year. Consumer goods production trends had given an indication to this effect, as rising borrowing rates have weakened the appetite for consumer credit and rising inflation in essentials like food articles has made a dent in discretionary spending. Government
final
consumption
expenditure has also grown at a slower pace of 2.1 percent compared to 6.7 percent during the same period of last fiscal. There are several reasons constraining government to spend lesser. Though the first quarter is usually a sluggish one, government is also giving priority to managing fiscal deficit which is still at the intolerable levels. Moreover, the wearing off of the 2008-09 fiscal stimuli has resulted in emergence of such trends.
for 2009-10 and 2010-11, which were released on 31st May 2011, have been revised on account of using the new series of IIP. The use of new series of IIP (base 2004-05) has resulted in revisions in mining, electricity
and
trade, hotels and restaurant sectors in
GDP. Estimates of
Consumption
Private Final
Expenditure
(PFCE),
Gross Fixed Capital Formation (GFCF)
20
a key
Industrial production
base year was reset to 2004-2005 from 1993-1994 to update the basket of goods that are included in
the
India’s exports during July 2011
government’s estimates. In the Q1
grew by 81.79
data, the government used industrial
29.34
production data for the quarter
compared to USD 16.14 billion (Rs.7.6
based on the new base year and
lakh crore) during the corresponding
the new components. But it has yet
month of the previous year, according
to release adjusted GDP readings for
to the data released by the ministry
previous quarters taking into account
of commerce and industry. In June,
the change.
the previous month, exports had
Expressing disappointment over the slowdown in the economic growth, said the slump
review
due to
at
USD
to USD 29.21 billion. Imports
was
percent
billion (Rs.1.30 lakh crore)
grown by 46.45 per cent year-on-year
Finance Minister Pranab Mukherjee
during
the month under
surged 51.52
percent
at
uncertainties in the US and European
USD 40.43 billion (Rs.1.8 lakh crore)
economies. “If you look at the overall
as against USD 26.68 billion (Rs.1.25
international scenario and particularly
lakh crore) in July 2010. Oil imports
Europe and US, there the performance
increased by 37.02 per cent to USD
is
is very
11.44 billion while non-oil imports
poor,” Mukherjee told reporters. The
increased by 58.12 per cent to USD
finance minister expressed hope that
28.98 billion.
the growth rate would pick up in the
However, during
unstable and
recovery
coming quarters. India’s expansion in Q1 is still the fastest after China (9.5%)
Meanwhile, Q1 estimates of GDP
manufacturing,
is
among major economies
the month, the
trade deficit of USD 11.08 billion was higher than the level of USD 10.54 billion seen in June. The trade deficit
In his budget speech in February,
for the April-July, 2011 was estimated
2011, Mukherjee had set a growth
at USD 42.69 billion as against USD
target
37.51 billion during the same period
of
9
percent
(plus-minus
0.25 percent) for the current fiscal.
of 2010-11.
However, disappointed with final
Owing to the amazing increase in
quarter data of the previous fiscal, he revised his earlier projections of GDP numbers to 8 percent. Reserve Bank of India is also maintaining its May 3,2011 growth forecast of 8.0 percent
exports during the current fiscal, exports grew by a robust 53.98 per cent to USD 108.35 billion in the first four months of the current fiscal 201112. Imports also increased by 40.0
ECONOMIC REVIEW percent to the level of USD 151.03
during the corresponding period of
and gram (2% each). However, the
billion as compared to USD 107.88
the previous year was recorded at
prices of barley (1%) declined.
billion during
15.14 per cent.
the corresponding
period of 2010-11.
The index for Non-Food Articles sub-
Reacting to the high food inflation,
group remained unchanged at
During the April-July period of the
Union Finance Minister
previous
fiscal 2011-12, oil imports grew by
Mukherjee said, “This
is
22.72 per cent to USD 41.97 billion
disturbing... Inflation is
always
from USD
really a
week’s level.
its
The major
items for which the index showed variations were raw cotton (+4%),
billion. On the
matter of concern and we shall have
coir fibre (+3%), groundnut
other hand, non-oil imports grew by
to ensure and improve the supply of
gingelly seed and fodder (+2% each),
48.03 per cent to USD 109.07 billion
food items.” However, he hoped that
Flowers (-11%), sunflower (-4%), raw
from USD 73.68 billion in April-July,
the double digit food inflation of 10%
rubber and gaur seed (-3% each) and
2010-11.
would come down soon after passing
castor seed and soyabean (-2% each).
Exports
34.20
Mr. Pranab
from Asia’s third-largest
economy
have
been
climbing
steadily,
driven
by
increased
government support to exporters to tap into new markets in Latin America and Africa, which are helping offset slowing demand from traditional regions such as the U.S., Europe and
of seasonal factors of commodities. Food inflation was in double digits for most of 2010, but started to moderate from March this year. This is the first time food inflation entered the double-digit mark since the week ended March 12, when it was at the same figure of 10.05%.
Japan. The government has also
It fell to 7.33% in mid-July, before
targeted the merchandise exports to
again rising to a four-and a-half month
reach USD 300 billion in the current
high of 9.90% in end-July. The rate
fiscal year 2011-12, compared to last
of price rise of food items has been
fiscal year’s all-time high of USD 245.9
highly volatile in the past few weeks.
billion.
Experts said that the volatile trend in
Food inflation back to double digits zone after 5 months
food inflation is likely to continue for some more time.
In a setback to the efforts of the government and the central bank, India’s food inflation rate entered the double-digit zone after a gap of nearly six months. Food inflation rate measured in terms of Wholesale Price Index (WPI) inched up again to 10.05 per cent (%) for the week ended
by 3.1 percent on account of higher prices of copper ore (34%), limestone (19%), zinc concentrate (18%), steatite (9%), dolomite and bauxite (7% each) and chromite (2%). On the other
hand, index
light & lubricants declined by 3.1 per cent owing to lower prices of light diesel oil (3%), aviation turbine fuel and naphta (2% each). The annual rate of inflation under this category for the week ended August 20, 2011 stood at the level of 12.55 percent compared to 13.13 per cent recorded during the previous week.
India’s core industries output growth up 7.8 percent in July, fastest in 15 months
percent as compared to the previous week levels. Annual rate of inflation for this group was 12.93 per cent, up from last week’s level of 12.40 per
for
another major category fuel, power,
for Primary Articles rose by 1.2
cent. It was 16.27 per cent for the
India’s infrastructure output in July
corresponding week of the preceding
grew at its fastest pace in 15 months,
year.
raising prospects of a robust industrial
Similarly, the index for ‘Food Articles’
week’s reading of 9.80% as the prices
sub-group moved up by 1.2 per cent,
of onion, fruits, vegetables
and
on account of higher prices of poultry
turned more
chicken (5%), fruits & vegetables, fish-
expensive. The rate of food inflation
inland (3% each), and ragi, jowar, egg
items
The index for `Minerals` group rose
Among the major groups, the index
August 20, 2011 from the previous
protein-based
seed,
expansion during the month. The Index of Eight core industries having a combined weight cent
in
the Index
of 37.90 per of Industrial
Production (IIP) with base 2004-05 registered a growth of 7.8% in July
21
ECONOMIC REVIEW 2011. The growth of these eight
against the growth of 13.7 percent
Manufacturing production contracted
key infrastructure industries in July is
during the same month last year.
slightly, ending a 26-month period
faster than 5.2% of June figure.
The growth of the new entrant has
This was also the much better as
been severely hurt during the month.
compared
Natural
to mere 5.7% growth
registered during ago
the same year-
period. However, during
production
growth
contracted by 8.2 percent in July
decrease in the volume of new orders. Concurrent contractions in manufacturing production were seen in the US, the Eurozone and the UK.
the
compared with a positive growth of
period of first four months of current
20.0 percent in July 2010. Fertilizer
financial year (April-July), the core
output also showed a negative
industries growth rate is still lagging
growth rate of (-) 1.6 percent in July
behind at the level of 5.8% compared
compared to a negative growth or
to 6.5% in the corresponding period
contraction of -0.3 percent in July
of the previous year.
2010.
Core industries robust performance in
The government has added two more
July has been led by the heavyweights
sectors - natural gas and fertilisers to
like steel, electricity
cement
the existing six industry segments.
with combined weight of over 50
With the inclusion of these two
percent
of the Index. According
sectors, the core industries now
to provisional data released by the
cover the sectors such as crude oil,
ministry on August, 30 showed, all
petroleum refinery products, natural
the three grew by over 10% during
gas, fertilisers, coal, electricity, cement
the month. The Electricity, Steel and
and steel. Also, its weightage now
Cement production grew by 13.0 per
account for 37.9 percent in the overall
According to data compiled by HSBC
cent, 15.5 per cent and 10.6 per cent
index of industrial production, as
Holdings Plc and Markit, the PMI of
in July respectively. In the same month
compared to 26.7 percent earlier.
euro-area manufacturing fell to 49
last year, electricity production had
INTERNATIONAL
in August from 50.4 in July, the first
Global Manufacturing Output plummets to lowest since June 2009
the 50 mark to signal contraction.
and
grown by 4.2 per cent, while steel and cement sectors had contracted by 2.9 per cent and 0.2 percent, respectively. On the other hand, the remaining
The US and the UK both saw output fall for the first time since May 2009, while the reduction in the Eurozone was the first in over two years. China and Japan saw production expand, but rates of increase were nonetheless relatively modest in both nations. Manufacturing slumped in Europe and Asia, adding to signs of slowing global growth. contracted
Euro-area manufacturing more
than
initially
estimated in August while Chinese manufacturing growth stayed near a 29-month low, purchasing managers’ indexes showed.
time in two years it has fallen below Similar gauges for Sweden, the U.K., South Korea and Taiwan all indicated contraction. The gauge for the U.K.
the
The global manufacturing slowdown
declining trend or contraction in
continued in August which raised the
growth. Growth of Coal output
concern of another global economic
index declined to 48.7 from 50.1.
slowed down to 2.4 percent in July
slump. The JP Morgan’s Global
The index of Chinese manufacturing
this year compared to 4.5 percent
Manufacturing purchasing managers’
was
in July 2010. Similarly, the growth
indexes (PMI)’ is only marginally
China Federation of Logistics and
in Crude oil production expanded
above at 50.1 to the neutral 50.0
Purchasing reported. Similar gauges
by mere 1.4 percent in July, 2011
mark. It has fallen to its lowest
for South Korea and Taiwan were at
compared to 15.8 percent expansion
level since June 2009, according to
49.7 and 45.2, below the expansion-
in the corresponding period of 2010.
media reports. A reading of 50 is the
contraction point of 50, according
Petroleum refinery products registered
dividing line between expansion and
to data compiled by HSBC Holdings
a growth of 3.9 percent in July, as
contraction in manufacturing.
Plc and Markit. Also, the Institute for
sectors
22
gas
of expansion following a further
have
shown
either
fell to 49 from 49.4, while Sweden’s
at
50.9, up from 50.7, the
ECONOMIC REVIEW Supply Management’s factory index
“Re-evaluating
international
grow between 3.7 to 4 per cent this
released unexpectedly showed U.S.
scenario, the Committee considers
year. Rising inflation has prompted
expansion in August, dropping to
there was a substantial deterioration,
the bank to hike interest rates this
50.6 from 50.9 the prior month.
reflected in generalized reduction
year. But a hot economy and high
of great magnitude in the growth
rates have made the currency one of
projections for the major economic
the worlds most overvalued. Brazil’s
blocs,” policy makers said in their
real has soared more than 40 per cent
statement posted
central
since the end of 2008, making exports
website. Brazil became the
less competitive and attracting a flood
Global manufacturing new orders have declined for the second month in a row in August. Lower levels of new business were signalled in the US, the Eurozone, China, the UK and Brazil. Within the euro area, all of the nations covered saw a decline in new work received. In contrast, the recovery in Japanese new orders gathered pace International trade flows declined for the first time in over two years
bank’s
the
on the
second country in the Group of
of cheap imports.
20 Nations
South Korea’s inflation rate surges to 3-year high of 5.3% in August
after Turkey to
lower
borrowing costs in response to the worsening global outlook. On Aug. 26, Mexico also signalled that it may
Sharp fall in trade surplus South
follow suit.
during August. New export orders
The move to cut rates by a half
declined in the Eurozone (including a
point
sharp reduction in Germany), China,
followed a campaign of five rate hikes
Japan, the UK and Brazil. The US and
aimed at battling Brazil’s scorching
Canada both saw new exports rise,
inflation rate, which has hit a six-
although the rate of increase in the US
year high of 7.1 per cent. The cut
dropped to a 25-month low.
came after economic activity slowed
Similarly, rates of input price inflation eased in the US, Japan, the UK, Australia, Canada, Brazil, and South Africa and, with
the exception of
Greece, all of the European nations
came without
warning and
in June for the first time since 2008. The country’s central bank has now
rate
accelerated to the fastest pace in three years in August mainly on account of rising food prices. Despite
the
government’s efforts to curb rising prices, it was the eighth consecutive month that inflation has breached the central bank’s target range for this year of 2-4 percent.
to the economy than inflation. It is
(CPI) increased 5.3 percent from the
Brazil’s first rate cut since July 2009.
same month last year as costs for
input cost indices rose in the emerging
committee led by President Alexandre
Asia manufacturing sectors of China,
Tombini said, it saw a “substantial
South Korea and Taiwan.
deterioration” in
Brazil surprises with its key Interest Rate cut
outlook
as
Europe
struggle
Brazil slashed its key Interest rate in a
slowdown in developed economies
surprise move citing concern that a
was likely to be more prolonged
prolonged global slump will put the
than previously expected and could
brakes on growth in Latin America’s
hit Brazil’s economy through weaker
largest economy. The central bank has
trade and investment flows and
cut its benchmark overnight lending
tighter credit.
the world.
inflation
The country’s consumer price index
Explaining
12%, still among the highest rates in
monthly
decided high rates pose a greater risk
covered by the survey. In contrast,
rate by half a percentage point to
Korea’s
its
decision,
the
the international
the United States and with
debt
and
anemic economic growth. It said the
food and transportation rose. That followed an increase of 4.7 percent in July. The rise in the CPI announced by Statistics Korea was the highest since a 5.6 percent year-on-year increase in August 2008 and also marked the first time the index broached the 5 percent level since September of the same year. Month-on-month the CPI rose 0.9 percent in August compared with a 0.7 percent increase during the previous month. Core inflation, which excludes volatile energy and food prices, rose by 4.0 percent in
After roaring ahead by 7.5 per cent
August from a year earlier and 0.3
last year, the economy is expected to
percent from the previous month.
23
ECONOMIC REVIEW The finance ministry has made the
rose only 27.1 percent and fell to USD
remain high, and the number of
fight against inflation its top policy
46.4 billion in August from revised
those out of work will increase.
priority.
USD 50.6 billion in July. On the other
But higher food prices due to heavy summer energy
rain
and
and
rising
global
commodities
prices
to a monthly record of USD 45.56 billion.
BCC expects unemployment to rise to 2.62 million by the end of 2012, while expecting inflation to hover around the 4.4% mark by the end of
BCC cuts UK economic growth forecast for third time in 2011
the year – albeit still more than double
The British Chambers of Commerce
for doom and gloom. We expect
“The higher-than-expected price hike
(BCC) has revised its UK economic
prospects
in
growth
medium-term, and believe that the
have hampered its
efforts.
Prices
of agricultural, livestock and fishery products jumped 13.3 percent from a year earlier, the report showed.
August
is
attributed to
one-
forecast
downward
the 2% target. “Despite this, there is
for
to improve over
the
the third time this year following
UK
farm products and gold,” said senior
disappointing results in the second
and thrive. But this will depend
ministry official Yoon Jong-Won. “We
quarter of 2011. Recently, the Office
on creating
expect that it will go down to around
for National Statistics (ONS) revealed
for businesses to grow, he added.”
4 percent after the (September 11-
the UK economy grew by 0.2% in the
The BCC also believes the Bank of
13) Chuseok holiday as the prices
April to June period. Growth for the
England should consider a fresh
of vegetables and fruit are likely to
second quarter slowed from the 0.5%
round of quantitative easing (QE) to
stabilise and the recent oil price fall
growth posted in the first quarter.
boost the economy, if weak economic
Publishing its
Bank of Korea Governor Kim Choong
Economic
Soo
said
central
the
BCC
the right
conditions
growth continues. The BCC is
just
the latest
will
downgraded its prediction for UK GDP
organization to announce another
growth in 2011 to just 1.1%. At the
downgrade of its growth forecast for
unless there’s a global recession. The
start of the year the business group
the UK economy. In comparison, the
central bank has raised its benchmark
said it expected the UK economy to
Confederation of British Industry (CBI)
interest rate three times this year to
grow by 1.9%, although this was
recently revised its growth prospects
3.25 percent, most recently in June.
later revised down to 1.3% in June.
to 1.3% this year, down from its May
It will meet to decide next policy on
The BCC also scaled back its 2012
forecast of 1.7%. Last month, the
September 8.
forecast from 2.2% to 2.1%, although
Bank of England cut its estimate
it predicted that UK GDP would
for 2011 to 1.4% from 1.75%, with
strengthen to 2.5% in 2013.
governor Mervyn King saying the
South
bank
Forecast,
Quarterly
the potential to recover
continue to “normalize” interest rates
Meanwhile,
the
new
has
no need
off factors such as surging prices for
will also be reflected.
Korea
also
reported a sharp fall in its trade surplus in August from the previous
BCC director general David Frost said
month, due to summer holidays and
the Government was right to reduce
weak technology-related exports to
the deficit, but he warned that such
developed countries.
measures ‘must
The surplus fell to USD 821 million in August from a surplus of USD 6.31 billion in July, the Ministry of Knowledge Economy said. Exports, equivalent to about half the economy,
24
hand, imports climbed 29.2 percent
policies
be matched
by
to stimulate growth’. ‘The
challenges faced by the UK economy are more difficult than first thought at the beginning of the year,’ he added. ‘Growth will be slow, inflation will
outlook for the global economy had
“deteriorated”.
Government’s
However, the
independent
Office
of Budget Responsibility (OBR) has a more optimistic forecast of 1.7%. Source: Assocham
EVENTS IN PICTURES
Launch of United Nations Globally Renowned Responsible Production Framework
Srinivasa Narayanan. Managing Director, ASSIST and K Saraswathi, Secretary General, MCCI presenting a memento to D. Jayakumar, Speaker of the TN Assembly.
FFT on Land Acquisition Policies – What Works and What Does not? T T Srinivasaraghavan welcoming the gathering. Seated l to r: Auxilia Peter, Ravindra Sannareddy and Prof. M Vijayabaskar
All India Workshop on Indirect Tax Laws T T Srinivasaraghavan presenting a memento to Justice V Ramasubramanian. Standing with them are P R Subramaniyan (left) and K K Sekar (right).
Foundation Course on Logistics - J Krishnan with the students of MOP Vaishnav College
MCCI-MMA Video Discussion on One for All – The Meerkat Way
A view of the meeting